United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 1051 1997 111
1 UNITED STATES
STATUTES AT LARGE

CONTAINING THE

LAWS AND CONCURRENT RESOLUTIONS

ENACTED DURING THE FIRST SESSION OF THE

ONE HUNDRED FIFTH CONGRESS

OF THE UNITED STATES OF AMERICA

1997

AND

PROCLAMATIONS

Volume 111

IN THREE PARTS

Part 1

PUBLIC LAWS 105–1 THROUGH 105–35

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON: 1998

PUBLISHED BY AUTHORITY OF LAW UNDER THE DIRECTION OF THE ARCHIVIST OF THE UNITED STATES BY THE OFFICE OF THE FEDERAL REGISTER, NATIONAL ARCHIVES AND RECORDS ADMINISTRATION

 “The United States Statutes at Large shall be legal evidence of laws, concurrent resolutions, . . . proclamations by the President and proposed or ratified amendments to the Constitution of the United States therein contained, in all the courts of the United States, the several States, and the Territories and insular possessions of the United States.” (1 USC 112).

For sale by the

Superintendent of Documents

U.S. Government Printing Office

Washington, DC 20402-9328

(3-part set; sold in sets only)

 CONTENTS Page List of Bills Enacted Into Public Lawv List of Public Lawsvii List of Bills Enacted Into Private Lawxv List of Private Lawsxvii List of Concurrent Resolutionsxix List of Proclamationsxxi Public Laws 105–1 Through 105–353 Popular Name IndexA1 Subject IndexB1 List of Bills Enacted Into Public Lawv List of Public Lawsvii List of Bills Enacted Into Private Lawxv List of Private Lawsxvii List of Concurrent Resolutionsxix List of Proclamationsxxi Public Laws 105–36 Through 105–881107 Popular Name IndexA1 Subject IndexB1 List of Bills Enacted Into Public Lawv List of Public Lawsvii List of Bills Enacted Into Private Lawxv List of Private Lawsxvii List of Concurrent Resolutionsxix List of Proclamationsxxi Public Laws 105–89 Through 105–1532115 Private Laws2695 Concurrent Resolutions2703 Proclamation2773 Popular Name IndexA1 Subject IndexB1 LIST OF BILLS ENACTED INTO PUBLIC LAW THE ONE HUNDRED FIFTH CONGRESS OF THE UNITED STATES FIRST SESSION, 1997 BILL PUBLIC LAW H.R. 5 105–17 H.R. 63 105–44 H.R. 79 105–79 H.R. 111 105–49 H.R. 173 105–27 H.R. 282 105–87 H.R. 363 105–23 H.R. 394 105–59 H.R. 408 105–42 H.R. 412 105–9 H.R. 499 105–4 H.R. 514 105–7 H.R. 649 105–28 H.R. 668 105–2 H.R. 672 105–80 H.R. 680 105–50 H.R. 681 105–88 H.R. 708 105–81 H.R. 709 105–36 H.R. 785 105–10 H.R. 867 105–89 H.R. 924 105–6 H.R. 956 105–20 H.R. 968 105–15 H.R. 1001 105–13 H.R. 1003 105–12 H.R. 1057 105–90 H.R. 1058 105–91 H.R. 1086 105–102 H.R. 1090 105–111 H.R. 1119 105–85 H.R. 1198 105–39 H.R. 1225 105–11 H.R. 1226 105–35 H.R. 1254 105–131 H.R. 1306 105–24 H.R. 1377 105–92 H.R. 1420 105–57 H.R. 1479 105–93 H.R. 1484 105–94 H.R. 1493 105–141 H.R. 1553 105–25 H.R. 1585 105–41 H.R. 1604 105–143 H.R. 1650 105–16 H.R. 1658 105–146 H R. 1747 105–95 H.R. 1787 105–96 H.R. 1840 105–112 H.R. 1866 105–43 H.R. 1871 105–18 H.R. 1901 105–30 H.R. 1902 105–26 H.R. 1944 105–40 H.R. 1948 105–60 H.R. 2013 105–70 H.R. 2014 105–34 H.R. 2015 105–33 H.R, 2016 105–45 H.R. 2018 105–31 H.R. 2107 105–83 H.R. 2129 105–97 H.R. 2158 105–65 H.R. 2159 105–118 H.R, 2160 105–86 H.R. 2169 105–66 H.R. 2203 105–62 H.R. 2209 105–55 H.R. 2248 105–51 H.R. 2264 105–78 H.R. 2265 105–147 H.R. 2266 105–56 H.R. 2267 105–119 H.R. 2366 105–113 H.R. 2367 105–98 H.R. 2378 105–61 H.R. 2443 105–52 H.R. 2464 105–73 H.R. 2476 105–148 H.R. 2564 105–99 H.R. 2607 105–100 H.R. 2626 105–142 H.R. 2796 105–152 H.R. 2813 105–103 H.R. 2977 105–153 H.R. 2979 105–144 H.R. 3025 105–149 H.R. 3034 105–150 H.J. Res. 25 105–1 H.J. Res. 32 105–21 H.J. Res. 36 105–3 H.J. Res. 75 105–67 H.J. Res. 90 105–32 H.J. Res. 91 105–104 H.J. Res. 92 105–105 H.J. Res. 94 105–46 H.J. Res. 95 105–145 H.J. Res. 96 105–151 H.J. Res. 97 105–64 H.J. Res. 101 105–68 H.J. Res. 103 105–120 H.J. Res. 104 105–69 H.J. Res. 105 105–71 H.J. Res. 106 105–84 S. 156 105–132 S. 305 105–14 S. 342 105–22 S. 410 105–8 S. 430 105–37 S. 476 105–133 S. 543 105–19 S. 587 105–74 S. 588 105–75 S. 589 105–76 S. 591 105–77 S. 669 105–106 S. 670 105–38 S. 714 105–114 S. 738 105–134 S. 813 105–101 S. 819 105–122 S. 830 105–115 S. 833 105–123 S. 858 105–107 S. 871 105–58 S. 910 105–47 S. 923 105–116 S. 931 105–82 S. 996 105–53 S. 1000 105–63 S. 1026 105–121 S. 1139 105–135 S. 1161 105–136 S. 1193 105–137 S. 1198 105–54 S. 1211 105–48 S. 1227 105–72 S. 1228 105–124 S. 1231 105–108 S. 1258 105–117 S. 1347 105–109 S. 1354 105–125 S. 1377 105–110 S. 1378 105–126 S. 1417 105–127 S. 1505 105–128 S. 1507 105–129 S. 1519 105–130 S. 1559 105–138 S. 1565 105–139 S.J. Res. 5 105–5 S.J. Res. 29 105–29 S.J. Res. 39 105–140 LIST OF PUBLIC LAWS CONTAINED IN THIS VOLUME PUBLIC LAW PAGE 105–1 3 105–2 4 105–3 9 105–4 10 105–5 11 105–6 12 105–7 14 105–8 15 105–9 16 105–10 21 105–11 22 105–12 23 105–13 31 105–14 32 105–15 34 105–16 35 105–17 37 105–18 158 105–19 218 105–20 224 105–21 235 105–22 236 105–23 237 105–24 238 105–25 240 105–26 241 105–27 244 105–28 245 105–29 246 105–30 248 105–31 249 105–32 250 105–33 251 105–34 788 105–35 1104 105–36 1107 105–37 1113 105–38 1115 105–39 1116 105–40 1117 105–41 1119 105–42 1122 105–43 1140 105–44 1141 105–45 1142 105–46 1153 105–47 1159 105–48 1165 105–49 1166 105–50 1167 105–51 1170 105–52 1172 105–53 1173 105–54 1175 105–55 1177 105–56 1203 105–57 1252 105–58 1261 105–59 1268 105–60 1269 105–61 1272 105–62 1320 105–63 1342 105–64 1343 105–65 1344 105–66 1425 105–67 1452 105–68 1453 105–69 1454 105–70 1455 105–71 1456 105–72 1457 105–73 1459 105–74 1460 105–75 1462 105–76 1463 105–77 1465 105–78 1467 105–79 1527 105–80 1529 105–81 1537 105–82 1540 105–83 1543 105–84 1628 105–85 1629 105–86 2079 105–87 2113 105–88 2114 105–89 2115 105–90 2137 105–91 2138 105–92 2139 105–93 2146 105–94 2147 105–95 2148 105–96 2150 105–97 2154 105–98 2155 105–99 2159 105–100 2160 105–101 2202 105–102 2204 105–103 2218 105–104 2219 105–105 2233 105–106 2247 105–107 2248 105–108 2264 105–109 2268 105–110 2270 105–111 2271 105–112 2273 105–113 2274 105–114 2277 105–115 2296 105–116 2381 105–117 2384 105–118 2386 105–119 2440 105–120 2527 105–121 2528 105–122 2532 105–123 2533 105–124 2534 105–125 2540 105–126 2542 105–127 2543 105–128 2548 105–129 2551 105–130 2552 105–131 2562 105–132 2563 105–133 2568 105–134 2570 105–135 2592 105–136 2639 105–137 2640 105–138 2642 105–139 2644 105–140 2646 105–141 2647 105–142 2650 105–143 2652 105–144 2667 105–145 2669 105–146 2672 105–147 2678 105–148 2681 105–149 2684 105–150 2685 105–151 2686 105–152 2688 105–153 2689 LIST OF BILLS ENACTED INTO PRIVATE LAW THE ONE HUNDRED FIFTH CONGRESS OF THE UNITED STATES FIRST SESSION, 1997 BILL PRIVATE LAW H.R. 584 105–2 H.R. 2731 105–3 H.R. 2732 105–4 S. 768 105–1 LIST OF PRIVATE LAWS CONTAINED IN THIS VOLUME PRIVATE LAW PAGE 105–1 2695 105–2 2697 105–3 2698 105–4 2699 LIST OF CONCURRENT RESOLUTIONS CONTAINED IN THIS VOLUME CONCURRENT RESOLUTION PAGE S. Con. Res. 1 2703 S. Con. Res. 2 2703 S. Con. Res. 3 2703 H. Con. Res. 9 2704 H. Con. Res. 21 2704 S. Con. Res. 4 2705 S. Con. Res. 14 2706 H. Con. Res. 11 2706 H. Con. Res. 61 2706 H. Con. Res. 25 2707 H. Con. Res. 66 2708 H. Con. Res. 49 2709 S. Con. Res. 26 2709 H. Con. Res. 67 2710 H. Con. Res. 84 2710 H. Con. Res. 108 2760 H. Con. Res. 123 2761 H. Con. Res. 98 2761 H. Con. Res. 136 2762 H. Con. Res. 138 2763 S. Con. Res. 43 2763 H. Con. Res. 134 2764 H. Con. Res. 169 2764 H. Con. Res. 8 2765 S. Con. Res. 56 2766 H. Con. Res. 167 2766 S. Con. Res. 61 2766 S. Con. Res. 62 2767 S. Con. Res. 63 2767 H. Con. Res. 194 2768 S. Con. Res. 68 2768 S. Con. Res. 70 2769 LIST OF PROCLAMATIONS CONTAINED IN THIS VOLUME PROCLAMATION PAGE 6930 2773 6931 2774 6932 2775 6933 2776 6934 2777 6935 2778 6936 2780 6937 2781 6938 2782 6939 2783 6940 2784 6941 2785 6942 2786 6943 2792 6944 2793 6945 2794 6946 2795 6947 2796 6948 2798 6949 2809 6950 2810 6951 2812 6952 2812 6953 2813 6954 2814 6955 2815 6956 2820 6957 2821 6958 2822 6959 2823 6960 2825 6961 2826 6962 2833 6963 2837 6964 2838 6965 2840 6966 2841 6967 2842 6968 2843 6969 2844 6970 2857 6971 2858 6972 2860 6973 2861 6974 2862 6975 2863 6976 2864 6977 2865 6978 2866 6979 2867 6980 2868 6981 2870 6982 2871 6983 2883 6984 2884 6985 2885 6986 2886 6987 2887 6988 2888 6989 2891 6990 2893 6991 2894 6992 2895 6993 2896 6994 2897 6995 2898 6996 2899 6997 2900 6998 2902 6999 2903 7000 2903 7001 2905 7002 2905 7003 2907 7004 2908 7005 2909 7006 2910 7007 2911 7008 2922 7009 2923 7010 2925 7011 2926 7012 2961 7013 2963 7014 2963 7015 2964 7016 2966 7017 2969 7018 2970 7019 2971 7020 2972 7021 2974 7022 2976 7023 2977 7024 2978 7025 2979 7026 2981 7027 2982 7028 2983 7029 2984 7030 2986 7031 2989 7032 2988 7033 2989 7034 2991 7035 2992 7036 2993 7037 2994 7038 2995 7039 2996 7040 2997 7041 2998 7042 2999 7043 3000 7044 3001 7045 3003 7046 3004 7047 3005 7048 3006 7049 3007 7050 3008

PUBLIC LAWS

ENACTED DURING

FIRST SESSION OF THE ONE HUNDRED FIFTH CONGRESS

OF THE

UNITED STATES OF AMERICA

 Begun and held at the City of Washington on Tuesday, January 7, 1997, adjourned sine die on Thursday, November 13, 1997. William J. Clinton, President; Albert Gore, Jr., Vice President; Newt Gingrich, Speaker of the House of Representatives. Public Law 105–1: Making technical corrections to the Omnibus Consolidated Appropriations Act, 1997 (Public Law 104–208), and for other purposes. Public Law1 Public Law 105–1 111 Stat. 3 1997-02-03 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 3 Public Law105–1 105th Congress
Joint Resolution Making technical corrections to the Omnibus Consolidated Appropriations Act, 1997 (Public Law 104–208), and for other purposes.

Feb. 3, 1997

[H.J. Res. 25]

 Resolved, by the Senate and House of Representatives of the United States of America in Congress assembled,
Section 1. Title III of the Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1997 (as contained in DIVISION A, TITLE I—OMNIBUS APPROPRIATIONS, section 101(a) of the Omnibus Consolidated Appropriations Act, 1997, Public Law 104–208) is amended under the heading “Courts of Appeals, District Courts, and Other Judicial Services—defender services” by striking “attorneys ap-” at the end

110 Stat. 3009–43.

 and inserting the following: “attorneys appointed to represent jurors in civil actions for the protection of their employment, as authorized by 28 U.S.C. 1875(d); $308,000,000, to remain available until expended as authorized by 18 U.S.C. 3006A(i).”. The foregoing amendment shall be considered for all purposes to have taken effect on the date of enactment of Public Law 104–208, and any actions taken prior to the date of enactment of this section on the basis that Public Law 104–208 should be interpreted as if it included the amendment made by this section, if otherwise valid, are ratified and approved by Congress.
Sec. 2. Title I of the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 1997 (as contained in DIVISION A, TITLE I—OMNIBUS APPROPRIATIONS, section 101(e) of the Omnibus Consolidated Appropriations Act, 1997, Public Law 104–208) is amended under the heading “Employment and Training Administration—state unemployment insurance and employment service operations” by striking

110 Stat. 3009–236.

 “$23,452,000” and inserting “$173,452,000”.
Sec. 3. Funds available for title IV–A–1 of the Elementary and Secondary Education Act in title III of the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 1997 (as contained in DIVISION A, TITLE I—OMNIBUS APPROPRIATIONS, section 101(e) of the Omnibus Consolidated Appropriations Act, 1997, Public Law 104208) under the heading “school improvement programs” shall also be available for title IV–A–2 of the Elementary and Secondary Education Act: Provided, That, of the funds under these headings in that Act available July 1, 1997, through September 30, 1998, $25,000,000 shall instead be available October 1, 1996, through September 30, 1997.
Approved February 3, 1997.
LEGISLATIVE HISTORY—H.J. Res. 25: CONGRESSIONAL RECORD, Vol. 143 (1997):

Jan. 9, considered and passed House.

Jan. 21, considered and passed Senate.

 Public Law 105–2: To amend the Internal Revenue Code of 1986 to reinstate the Airport and Airway Trust Fund excise taxes, and for other purposes. Public Law2 Public Law 105–2 111 Stat. 4 1997-02-28 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 4 Public Law105–2 105th Congress
An Act To amend the Internal Revenue Code of 1986 to reinstate the Airport and Airway Trust Fund excise taxes, and for other purposes.

Feb. 28, 1997

[H.R. 668]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Airport and Airway Trust Fund Tax Reinstatement Act of 1997.

26 USC 1 note.

26 USC 1 et seq.
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE. (a) Short Title.—This Act may be cited as the “Airport and Airway Trust Fund Tax Reinstatement Act of 1997”. (b) Amendment of 1986 Code.—Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.
SEC. 2. REINSTATEMENT OF AIRPORT AND AIRWAY TRUST FUND EXCISE TAXES. (a) Fuel Taxes.— (1) Aviation fuel.—Subparagraph (A) of section 4091(b)(3) is amended to read as follows: “(A) The rate of tax specified in paragraph (1) shall be 4.3 cents per gallon— “(i) after December 31, 1996, and before the date which is 7 days after the date of the enactment of the Airport and Airway Trust Fund Tax Reinstatement Act of 1997, and “(ii) after September 30, 1997”. (2) Aviation gasoline.—Subsection (d) of section 4081 is amended by striking the paragraph (3) added by section 1609(a) of the Small Business Job Protection Act of 1996 and by striking paragraphs (1) and (2) and inserting the following new paragraphs: “(1) In general.—The rates of tax specified in clauses (i) and (iii) of subsection (a)(2)(A) shall be 4.3 cents per gallon after September 30, 1999. “(2) Aviation gasoline.—The rate of tax specified in subsection (a)(2)(A)(ii) shall be 4.3 cents per gallon— “(A) after December 31, 1996, and before the date which is 7 days after the date of the enactment of the Airport and Airway Trust Fund Tax Reinstatement Act of 1997, and “(B) after September 30, 1997.”. (3) Noncommercial aviation.—Paragraph (3) of section 4041(c) is amended to read as follows:111 STAT. 5 “(3) Termination.—The rate of the taxes imposed by paragraph (1) shall be 4.3 cents per gallon— “(A) after December 31, 1996, and before the date which is 7 days after the date of the enactment of the Airport and Airway Trust Fund Tax Reinstatement Act of 1997, and “(B) after September 30, 1997.”. (b) Ticket Taxes.— (1) Persons.—Subsection (g) of section 4261 is amended to read as follows: “(g) Application of Taxes.— “(1) In general.—The taxes imposed by this section shall apply to— “(A) transportation beginning during the period— “(i) beginning on the 7th day after the date of the enactment of the Airport and Airway Trust Fund Tax Reinstatement Act of 1997, and “(ii) ending on September 30, 1997, and “(B) amounts paid during such period for transportation beginning after such period. “(2) Refunds.—If, as of the date any transportation begins, the taxes imposed by this section would not have applied to such transportation if paid for on such date, any tax paid under paragraph (1)(B) with respect to such transportation shall be treated as an overpayment.”. (2) Property.—Subsection (d) of section 4271 is amended to read as follows: “(d) Application of Tax.— “(1) In general.—The tax imposed by subsection (a) shall apply to— “(A) transportation beginning during the period— “(i) beginning on the 7th day after the date of the enactment of the Airport and Airway Trust Fund Tax Reinstatement Act of 1997, and “(ii) ending on September 30, 1997, and “(B) amounts paid during such period for transportation beginning after such period. “(2) Refunds.—If, as of the date any transportation begins, the taxes imposed by this section would not have applied to such transportation if paid for on such date, any tax paid under paragraph (1)(B) with respect to such transportation shall be treated as an overpayment.”. (c) Transfers to Airport and Airway Trust Fund.— (1) In general.—Subsection (b) of section 9502 is amended to read as follows: “(b) Transfers to Airport and Airway Trust Fund.—There

Appropriation authorization.

 are hereby appropriated to the Airport and Airway Trust Fund amounts equivalent to— “(1) the taxes received in the Treasury under— “(A) subsections (c) and (e) of section 4041 (relating to aviation fuels), “(B) sections 4261 and 4271 (relating to transportation by air), “(C) section 4081 (relating to gasoline) with respect to aviation gasoline (to the extent that the rate of the tax on such gasoline exceeds 4.3 cents per gallon), and111 STAT. 6 “(D) section 4091 (relating to aviation fuel) to the extent attributable to the Airport and Airway Trust Fund financing rate, and “(2) the amounts determined by the Secretary of the Treasury to be equivalent to the amounts of civil penalties collected under section 47107(n) of title 49, United States Code.”. (2) Termination of financing rate.—Paragraph (3) of section 9502(f) is amended to read as follows: “(3) Termination.—Notwithstanding the preceding provisions of this subsection, the Airport and Airway Trust Fund financing rate shall be zero with respect to taxes imposed during any period that the rate of the tax imposed by section 4091(b)(1) is 4.3 cents per gallon.”. (d)

26 USC 4081 note.

 Floor Stocks Taxes on Aviation Gasoline and Aviation Fuel.— (1) Imposition of tax.—In the case of any aviation liquid on which tax was imposed under section 4081 or 4091 of the Internal Revenue Code of 1986 before the tax effective date and which is held on such date by any person, there is hereby imposed a floor stocks tax of— (A) 15 cents per gallon in the case of aviation gasoline, and (B) 17.5 cents per gallon in the case of aviation fuel. (2) Liability for tax and method of payment.— (A) Liability for tax.—A person holding, on the tax effective date, any aviation liquid to which the tax imposed by paragraph (1) applies shall be liable for such tax. (B) Method of payment.—The tax imposed by paragraph (1) shall be paid in such manner as the Secretary shall prescribe. (C) Time for payment.—The tax imposed by paragraph (1) shall be paid on or before the first day of the 5th month beginning after the tax effective date. (3) Definitions.—For purposes of this subsection— (A) Tax effective date.—The term “tax effective date” means the date which is 7 days after the date of the enactment of this Act. (B) Aviation liquid.—The term “aviation liquid” means aviation gasoline and aviation fuel. (C) Aviation gasoline.—The term “aviation gasoline” has the meaning given such term in section 4081 of such Code. (D) Aviation fuel.—The term “aviation fuel” has the meaning given such term by section 4093 of such Code. (E) Held by a person.—Aviation liquid shall be considered as “held by a person” if title thereto has passed to such person (whether or not delivery to the person has been made). (F) Secretary.—The term “Secretary” means the Secretary of the Treasury or the Secretary's delegate. (4) Exception for exempt uses.—The tax imposed by paragraph (1) shall not apply to— (A) aviation liquid held by any person on the tax effective date exclusively for any use for which a credit or refund of the entire tax imposed by section 4081 or 4091 of such Code (as the case may be) is allowable for such 111 STAT. 7liquid purchased on or after such tax effective date for such use, or (B) aviation fuel held by any person on the tax effective date exclusively for any use described in section 4092(b) of such Code. (5) Exception for certain amounts of fuel.— (A) In general.—No tax shall be imposed by paragraph (1) on any aviation liquid held on the tax effective date by any person if the aggregate amount of such liquid (determined separately for aviation gasoline and aviation fuel) held by such person on such date does not exceed 2,000 gallons. The preceding sentence shall apply only if

Applicability.

 such person submits to the Secretary (at the time and in the manner required by the Secretary) such information as the Secretary shall require for purposes of this paragraph. (B) Exempt fuel.—Any liquid to which the tax imposed by paragraph (1) does not apply by reason of paragraph (4) shall not be taken into account under subparagraph (A). (C) Controlled groups.—For purposes of this paragraph— (i) Corporations.— (I) In general.—All persons treated as a controlled group shall be treated as 1 person. (II) Controlled group.—The term “controlled group” has the meaning given such term by subsection (a) of section 1563 of such Code; except that for such purposes, the phrase “more than 50 percent” shall be substituted for the phrase “at least 80 percent” each place it appears in such subsection. (ii) Nonincorporated persons under common control.—

Regulations.

Applicability.

Under regulations prescribed by the Secretary, principles similar to the principles of clause (i) shall apply to a group of persons under common control where 1 or more of such persons is not a corporation. (6) Other laws applicable.—All provisions of law, including penalties, applicable with respect to the taxes imposed by section 4081 or 4091 of such Code shall, insofar as applicable and not inconsistent with the provisions of this subsection, apply with respect to the floor stocks taxes imposed by paragraph (1) to the same extent as if such taxes were imposed by such section 4081 or 4091, as the case may be. (e) Effective Dates.— (1) Fuel taxes.—The amendments made by subsection

26 USC 4041 note.

 (a) shall apply to periods beginning on or after the 7th day after the date of the enactment of this Act. (2) Ticket taxes.—

26 USC 4261 note.

 (A) In general.—The amendments made by subsection (b) shall apply to transportation beginning on or after such 7th day. (B) Exception for certain payments.—Except as provided in subparagraph (C), the amendments made by subsection (b) shall not apply to any amount paid before such 7th day.111 STAT. 8 (C) Payments of property transportation tax within controlled group.—In the case of the tax imposed by section 4271 of the Internal Revenue Code of 1986, subparagraph (B) shall not apply to any amount paid by 1 member of a controlled group for transportation furnished by another member of such group. For purposes of the preceding sentence, all persons treated as a single employer under subsection (a) or (b) of section 52 of the Internal Revenue Code of 1986 shall be treated as members of a controlled group. (f) Application of Look-Back Safe Harbor for Deposits.—Nothing in the look-back safe harbor prescribed in Treasury Regulation section 40.6302(c)–1(c)(2) shall be construed to permit such safe harbor to be used with respect to any tax unless such tax was imposed throughout the look-back period.
Approved February 28, 1997.
LEGISLATIVE HISTORY—H.R. 668 (S. 279): HOUSE REPORTS: No. 106–5 (Comm. on Ways and Means). SENATE REPORTS: No. 105–4 accompanying S. 279 (Comm. on Finance). CONGRESSIONAL RECORD, Vol. 143 (1997):

Feb. 25, 26, considered and passed House.

Feb. 27, considered and passed Senate.

 Public Law 105–3: Approving the Presidential finding that the limitation on obligations imposed by section 518A(a) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1997, is having a negative impact on the proper functioning of the population planning program. Public Law3 Public Law 105–3 111 Stat. 9 1997-02-28 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 9 Public Law105–3 105th Congress
Joint Resolution Approving the Presidential finding that the limitation on obligations imposed by section 518A(a) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1997, is having a negative impact on the proper functioning of the population planning program.

Feb. 28, 1997

[H.J. Res. 36]

 Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,
That the House of Representatives and Senate approve the Presidential finding, submitted to the Congress on January 31, 1997, that the limitation on obligations imposed by section 518A(a) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1997, is having a negative impact on the proper functioning of the population planning program.
Approved February 28, 1997.
LEGISLATIVE HISTORY—H.J. Res. 36 (S.J. Res. 14): CONGRESSIONAL RECORD, Vol. 143 (1997):

Feb. 13, considered and passed House.

Feb. 24, 26, considered and passed Senate.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):

Feb. 28, Presidential statement.

 Public Law 105–4: To designate the facility of the United States Postal Service under construction at 7411 Barlite Boulevard in San Antonio, Texas, as the “Frank M. Tejeda post Office Building”. Public Law4 Public Law 105–4 111 Stat. 10 1997-03-03 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 10 Public Law105–4 105th Congress
An Act To designate the facility of the United States Postal Service under construction at 7411 Barlite Boulevard in San Antonio, Texas, as the “Frank M. Tejeda post Office Building”.

Mar. 3, 1997

[H.R. 499]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. DESIGNATION. The facility of the United States Postal Service under construction at 7411 Barlite Boulevard in San Antonio, Texas, shall be known and designated as the “Frank M. Tejeda Post Office Building”.
SEC. 2. REFERENCES. Any reference in a law, map, regulation, document, paper, or other record of the United States to the facility referred to in section 1 shall be deemed to be a reference to the “Frank M. Tejeda Post Office Building”.
Approved March 3, 1997.
LEGISLATIVE HISTORY—H.R. 499: CONGRESSIONAL RECORD, Vol. 143 (1997):

Feb. 5, considered and passed House.

Feb. 26, considered and passed Senate.

 Public Law 105–5: Waiving certain provisions of the Trade Act of 1974 relating to the appointment of the United States Trade Representative. Public Law5 Public Law 105–5 111 Stat. 11 1997-03-17 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 11 Public Law105–5 105th Congress
Joint Resolution Waiving certain provisions of the Trade Act of 1974 relating to the appointment of the United States Trade Representative.

Mar. 17, 1997

[S.J. Res. 5]

 Whereas paragraph (3) of section 141(b) of the Trade Act of 1974 (19 U.S.C. 2171(b)(3)) became effective on January 1, 1996, and provides certain limitations with respect to the appointment of the United States Trade Representative and Deputy United States Trade Representatives; Whereas paragraph (3) of section 141(b) of the Trade Act of 1974 does not apply to any individual who was serving as the United States Trade Representative or Deputy United States Trade Representative on the effective date of such paragraph (3) and who continued to serve in that position; Whereas Charlene Barshefsky was appointed Deputy United States Trade Representative on May 28, 1993, with the advice and consent of the Senate, and was serving in that position on January 1, 1996; Whereas paragraph (3) of section 141(b) of the Trade Act of 1974 does not apply to Charlene Barshefsky in her capacity as Deputy United States Trade Representative; and Whereas in light of the foregoing, it is appropriate to continue to waive the provisions of paragraph (3) of section 141(b) of the Trade Act of 1974 with respect to the appointment of Charlene Barshefsky as the United States Trade Representative: Now, therefore, be it Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,
That notwithstanding

19 USC 2171 note.

 the provisions of paragraph (3) of section 141(b) of the Trade Act of 1974 (19 U.S.C. 2171(b)(3)) or any other provision of law, the President, acting by and with the advice and consent of the Senate, is authorized to appoint Charlene Barshefsky as the United States Trade Representative.
Approved March 17, 1997.
LEGISLATIVE HISTORY—S.J. Res. 5: CONGRESSIONAL RECORD, Vol. 143 (1997):

Mar. 5, considered and passed Senate.

Mar. 11, considered and passed House.

 Public Law 105–6: To amend title 18, United States Code, to give further assurance to the right of victims of crime to attend and observe the trials of those accused of the crime. Public Law6 Public Law 105–6 111 Stat. 12 1997-03-19 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 12 Public Law105–6 105th Congress
An Act To amend title 18, United States Code, to give further assurance to the right of victims of crime to attend and observe the trials of those accused of the crime.

Mar. 19, 1997

[H.R. 924]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Victim Rights Clarification Act of 1997.

18 USC 3481 note.
SECTION 1. SHORT TITLE. This Act may be cited as the “Victim Rights Clarification Act of 1997”.
SEC. 2. RIGHTS OF VICTIMS TO ATTEND AND OBSERVE TRIAL. (a) In General.—Chapter 223 of title 18, United States Code, is amended by adding at the end the following:
“ 3510. Rights of victims to attend and observe trial. “(a) Non-Capital Cases.—Notwithstanding any statute, rule, or other provision of law, a United States district court shall not order any victim of an offense excluded from the trial of a defendant accused of that offense because such victim may, during the sentencing hearing, make a statement or present any information in relation to the sentence. “(b) Capital Cases.—Notwithstanding any statute, rule, or other provision of law, a United States district court shall not order any victim of an offense excluded from the trial of a defendant accused of that offense because such victim may, during the sentencing hearing, testify as to the effect of the offense on the victim and the victim’s family or as to any other factor for which notice is required under section 3593(a). “(c) Definition.—As used in this section, the term ‘victim’ includes all persons defined as victims in section 503(e)(2) of the Victims’ Rights and Restitution Act of 1990.”.
(b) Clerical Amendment.—The table of sections at the beginning of chapter 223 of title 18, United States Code, is amended by adding at the end the following new item: “3510. (c) Clarification of Grounds for Exclusion.—Section 3593(c) of title 18, United States Code, is amended by inserting “For the purposes of the preceding sentence, the fact that a victim, as defined in section 3510, attended or observed the trial shall not be construed to pose a danger of creating unfair prejudice, confusing the issues, or misleading the jury.” after “misleading the jury.”.111 STAT. 13 (d) Effect on Pending Cases.—The amendments made by

18 USC 3510 note.

 this section shall apply in cases pending on the date of the enactment of this Act.
Approved March 19, 1997.
LEGISLATIVE HISTORY—H.R. 924 (S. 447): HOUSE REPORTS: No. 105–28 (Comm. on the Judiciary). CONGRESSIONAL RECORD, Vol. 143 (1997).

Mar. 18, considered and passed House.

Mar. 19, considered and passed Senate.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):

Mar. 20, Presidential statement.

 Public Law 105–7: To permit the waiver of District of Columbia residency requirements for certain employees of the Office of the Inspector General of the District of Columbia. Public Law7 Public Law 105–7 111 Stat. 14 1997-03-25 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 14 Public Law105–7 105th Congress
An Act To permit the waiver of District of Columbia residency requirements for certain employees of the Office of the Inspector General of the District of Columbia.

Mar. 25, 1997

[H.R. 514]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

District of Columbia Inspector General Improvement Act of 1997.
SECTION 1. SHORT TITLE. This Act may be cited as the “District of Columbia Inspector General Improvement Act of 1997”.
SEC. 2. WAIVER OF RESIDENCY REQUIREMENT FOR CERTAIN EMPLOYEES OF INSPECTOR GENERAL. Section 906 of the District of Columbia Government Comprehensive Merit Personnel Act of 1978 (sec. 1–610.6, D.C. Code) is amended— (1) in subsection (a), by inserting “or subsection (d)” after “subsection (c)”; and (2) by adding at the end the following new subsection: “(d) At the request of the Inspector General (as described in section 208(a) of the District of Columbia Procurement Practices Act of 1985), the Director of Personnel may waive the application of subsections (a) and (b) to employees of the Office of the Inspector General.”.
Approved March 25, 1997.
LEGISLATIVE HISTORY—H.R. 514: HOUSE REPORTS: No. 105–29 (Comm. on Government Reform and Oversight). CONGRESSIONAL RECORD, Vol. 143 (1997):

Mar. 18, considered and passed House.

Mar. 20, considered and passed Senate.

 Public Law 105–8: To extend the effective date of the Investment Advisers Supervision Coordination Act. Public Law8 Public Law 105–8 111 Stat. 15 1997-03-31 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 15 Public Law105–8 105th Congress
An Act To extend the effective date of the Investment Advisers Supervision Coordination Act.

Mar. 31, 1997

[S. 410]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. EXTENSION OF EFFECTIVE DATE. Section 308(a) of the Investment Advisers Supervision Coordination Act (110 Stat. 3440) is amended by striking “180” and inserting “270”.
Approved March 31, 1997.
LEGISLATIVE HISTORY—S. 410: CONGRESSIONAL RECORD, Vol. 143 (1997):

Mar. 12, considered and passed Senate.

Mar. 18, considered and passed House.

 Public Law 105–9: To approve a settlement agreement between the Bureau of Reclamation and the Oroville-Tonasket Irrigation District. Public Law9 Public Law 105–9 111 Stat. 16 1997-04-14 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 16 Public Law105–9 105th Congress
An Act To approve a settlement agreement between the Bureau of Reclamation and the Oroville-Tonasket Irrigation District.

Apr. 14, 1997

[H.R. 412]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Oroville-Tonasket Claim Settlement and Conveyance Act. Washington.
SECTION 1. SHORT TITLE. This Act may be cited as the “Oroville-Tonasket Claim Settlement and Conveyance Act”.
SEC. 2. PURPOSES. The purposes of this Act are to authorize the Secretary of the Interior to implement the provisions of the negotiated Settlement Agreement including conveyance of the Project Irrigation Works, identified as not having national importance, to the District, and for other purposes.
SEC. 3. DEFINITIONS. As used in this Act: (1) The term “Secretary” means the Secretary of the Interior. (2) The term “Reclamation” means the United States Bureau of Reclamation. (3) The term “District” or “Oroville-Tonasket Irrigation District” means the project beneficiary organized and operating under the laws of the State of Washington, which is the operating and repayment entity for the Project. (4) The term “Project” means the Oroville-Tonasket unit extension, Okanogan-Similkameen division, Chief Joseph Dam Project, Washington, constructed and rehabilitated by the United States under the Act of September 28, 1976 (Public Law 94–423, 90 Stat. 1324), previously authorized and constructed under the Act of October 9, 1962 (Public Law 87–762, 76 Stat. 761), under the Federal reclamation laws (including the Act of June 17, 1902 (ch. 1093, 32 Stat. 388), and Acts supplementary thereto or amendatory thereof). (5) The term “Project Irrigation Works” means— (A) those works actually in existence and described in subarticle 3(a) of the Repayment Contract, excluding Wildlife Mitigation Facilities, and depicted on the maps held by the District and Reclamation, consisting of the realty with improvements and real estate interests; (B) all equipment, parts, inventories, and tools associated with the Project Irrigation Works realty and 111 STAT. 17improvements and currently in the District’s possession; and (C) all third party agreements. (6)(A) The term “Basic Contract” means Repayment Contract No. 14–06–100–4442, dated December 26, 1964, as amended and supplemented, between the United States and the District; (B) the term “Repayment Contract” means Repayment Contract No. 00–7–10–W0242, dated November 28, 1979, as amended and supplemented, between the United States and the District; and (C) the term “third party agreements” means existing contractual duties, obligations, and responsibilities that exist because of all leases, licenses, and easements with third-parties related to the Project Irrigation Works, or the lands or rights-of-way for the Project Irrigation Works, but excepting power arrangements with the Bonneville Power Administration. (7) The term “Wildlife Mitigation Facilities” means— (A) land, improvements, or easements, or any combination thereof, secured for access to such lands, acquired by the United States under the Fish and Wildlife Coordination Act (16 U.S.C. 661–667e); and (B) all third party agreements associated with the land, improvements, or easements referred to in subparagraph (A). (8) The term “Indian Trust Lands” means approximately 61 acres of lands identified on land classification maps on file with the District and Reclamation beneficially owned by the Confederated Tribes of the Colville Reservation (Colville Tribes) or by individual Indians, and held in trust by the United States for the benefit of the Colville Tribes in accordance with the Executive Order of April 9, 1872. (9) The term “Settlement Agreement” means the Agreement made and entered on April 15, 1996, between the United States of America acting through the Regional Director, Pacific Northwest Region, Bureau of Reclamation, and the Oroville-Tonasket Irrigation District. (10) The term “operations and maintenance” means normal and reasonable care, control, operation, repair, replacement, and maintenance.
SEC. 4. AGREEMENT AUTHORIZATION. The Settlement Agreement is approved and the Secretary of the Interior is authorized to conduct all necessary and appropriate investigations, studies, and required Federal actions to implement the Settlement Agreement.
SEC. 5. CONSIDERATION AND SATISFACTION OF OUTSTANDING OBLIGATIONS. (a) Consideration to United States.—Consideration by the District to the United States in accordance with the Settlement Agreement approved by this Act shall be— (1) payment of $350,000 by the District to the United States; (2) assumption by the District of full liability and responsibility and release of the United States of all further responsibility, obligations, and liability for removing irrigation facilities constructed and rehabilitated by the United States 111 STAT. 18under the Act of October 9, 1962 (Public Law 87–762, 76 Stat. 761), or referenced in section 201 of the Act of September 28, 1976 (Public Law 94–423, 90 Stat. 1324), and identified in Article 3(a)(8) of the Repayment Contract; (3) assumption by the District of sole and absolute responsibility for the operations and maintenance of the Project Irrigation Works; (4) release and discharge by the District as to the United States from all past and future claims, whether now known or unknown, arising from or in any way related to the Project, including any arising from the Project Irrigation Works constructed pursuant to the 1964 Basic Contract or the 1979 Repayment Contract; (5) assumption by the District of full responsibility to indemnify and defend the United States against any third party claims associated with any aspect of the Project, except for that claim known as the Grillo Claim, government contractor construction claims accruing at any time, and any other suits or claims filed as of the date of the Settlement Agreement; and (6) continued obligation by the District to deliver water to and provide for operations and maintenance of the Wildlife Mitigation Facilities at its own expense in accordance with the Settlement Agreement. (b) Responsibilities of United States.—In return the United States shall— (1) release and discharge the District’s obligation, including any delinquent or accrued payments, or assessments of any nature under the 1979 Repayment Contract, including the unpaid obligation of the 1964 Basic Contract; (2) transfer title of the Project Irrigation Works to the District; (3) assign to the District all third party agreements associated with the Project Irrigation Works; (4) continue power deliveries provided under section 6 of this Act; and (5) assume full responsibility to indemnify and defend the District against any claim known as the Grillo Claim, government contractor construction claims accruing at any time, and any other suits or claims filed against the United States as of the date of the Settlement Agreement. (c) Project Construction Costs.—The transfer of title authorized by this Act shall not affect the timing or amount of the obligation of the Bonneville Power Administration for the repayment or construction costs incurred by the Federal government under section 202 of the Act of September 28, 1976 (90 Stat. 1324, 1326) that the Secretary of the Interior has determined to be beyond the ability of the irrigators to pay. The obligation shall remain charged to, and be returned to the Reclamation Fund as provided for in section 2 of the Act of June 14, 1966 (80 Stat. 200) as amended by section 6 of the Act of September 7, 1966 (80 Stat. 707,714).
SEC. 6. POWER. Nothing in this Act shall be construed as having any affect on power arrangements under Public Law 94–423 (90 Stat. 1324). The United States shall continue to provide to the District power 111 STAT. 19and energy for irrigation water pumping for the Project, including Dairy Point Pumping Plant. However, the amount and term of reserved power shall not exceed, respectively— (1) 27,100,000 kilowatt hours per year; and (2) 50 years commencing October 18, 1990. The rate that the District shall pay the Secretary for such reserved power shall continue to reflect full recovery of Bonneville Power Administration transmission costs.
SEC. 7. CONVEYANCE. (a) Conveyance of Interests of United States.—Subject to valid existing rights, the Secretary is authorized to convey all right, title, and interest, without warranties, of the United States in and to all Project Irrigation Works to the District. In the event a significant cultural resource or hazardous waste site is identified, the Secretary is authorized to defer or delay transfer of title to any parcel until required Federal action is completed. (b) Retention of Title to Wildlife Mitigation Facilities.—The Secretary will retain title to the Wildlife Mitigation Facilities. The District shall remain obligated to deliver water to and provide for the operations and maintenance of the Wildlife Mitigation Facilities at its own expense in accordance with the Settlement Agreement. (c) Reservation.—The transfer of rights and interests pursuant to subsection (a) shall reserve to the United States all oil, gas, and other mineral deposits and a perpetual right to existing public access open to public fishing, hunting, and other outdoor recreation purposes, and such other existing public uses.
SEC. 8. REPAYMENT CONTRACT. Upon conveyance of title to the Project Irrigation Works notwithstanding any parcels delayed in accordance with section 7(a), the 1964 Basic Contract, and the 1979 Repayment Contract between the District and Reclamation, shall be terminated and of no further force or effect.
SEC. 9. INDIAN TRUST RESPONSIBILITIES. The District shall remain obligated to deliver water under appropriate water service contracts to Indian Trust Lands upon request from the owners or lessees of such land.
SEC. 10. LIABILITY. Upon completion of the conveyance of Project Irrigation Works under this Act, the District shall— (1) be liable for all acts or omissions relating to the operation and use of the Project Irrigation Works that occur before or after the conveyance except for the Grillo Claim, government contractor construction claims accruing at any time, and any other suits or claims filed as of the date of the Settlement Agreement; (2) absolve the United States and its officers and agents of responsibility and liability for the design and construction including latent defects associated with the Project; and (3) assume responsibility to indemnify and defend the United States against all claims whether now known or unknown and including those of third party claims associated with, arising from, or in any way related to, the Project except for the Grillo Claim, government contractor construction claims 111 STAT. 20accruing at any time, and any other suits or claims filed as of the date of the Settlement Agreement.
SEC. 11. CERTAIN ACTS NOT APPLICABLE AND TERMINATION OF MANDATES. (a) Reclamation Laws.—All mandates imposed by the Reclamation Act of 1902, and all Acts supplementary thereto or amendatory thereof, including the Reclamation Reform Act of 1982, upon the Project Irrigation Works shall be terminated upon the completion of the transfers as provided by this Act and the Settlement Agreement. (b) Relationship to Other Laws.—The transfer of title authorized by this Act shall not— (1) be subject to the provisions of chapter 5 of title 5, United States Code (commonly known as the “Administrative Procedure Act”); or (2) be considered a disposal of surplus property under the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.) and the Surplus Property Act of 1944 (50 U.S.C. App. 1601 et seq.). (c) Deauthorization.—Effective upon transfer of title to the District under this Act, that portion of the Oroville-Tonasket Unit Extension, Okanogan-Similkameen Division, Chief Joseph Dam Project, Washington, referred to in section 7(a) as the Project Irrigation Works is hereby deauthorized. After transfer of title, the District shall not be entitled to receive any further Reclamation benefits pursuant to the Reclamation Act of June 17, 1902, and Act supplementary thereto or amendatory thereof.
Approved April 14, 1997.
LEGISLATIVE HISTORY—H.R. 412: HOUSE REPORTS: No. 105–8 (Comm. on Resources). CONGRESSIONAL RECORD, Vol. 143 (1997):

Mar. 18, considered and passed House.

Apr. 8, considered and passed Senate.

 Public Law 105–10: To designate the J. Phil Campbell, Senior, Natural Resource Conservation Center. Public Law10 Public Law 105–10 111 Stat. 21 1997-04-24 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 21 Public Law105–10 105th Congress
An Act To designate the J. Phil Campbell, Senior, Natural Resource Conservation Center.

Apr. 24, 1997

[H.R. 785]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. DESIGNATION OF J. PHIL CAMPBELL, SENIOR, NATURAL RESOURCE CONSERVATION CENTER. The Southern Piedmont Conservation Research Center located at 1420 Experimental Station Road in Watkinsville, Georgia, shall be known and designated as the “J. Phil Campbell, Senior, Natural Resource Conservation Center”.
SEC. 2. REFERENCES. Any reference in a law, map, regulation, document, paper, or other record of the United States to the building referred to in section 1 shall be deemed to be a reference to the “J. Phil Campbell, Senior, Natural Resource Conservation Center”.
Approved April 24, 1997.
LEGISLATIVE HISTORY—H.R. 785: CONGRESSIONAL RECORD, Vol. 143 (1997):

Apr. 8. considered and passed House.

Apr. 10, considered and passed Senate.

 Public Law 105–11: To make a technical correction to title 28, United States Code, relating to jurisdiction for lawsuits against terrorist states. Public Law11 Public Law 105–11 111 Stat. 22 1997-04-25 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 22 Public Law105–11 105th Congress
An Act To make a technical correction to title 28, United States Code, relating to jurisdiction for lawsuits against terrorist states.

Apr. 25, 1997

[H.R. 1225]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

28 USC 1605 note.
That, effective with respect to any cause of action arising, before, on, or after the date of the enactment of this Act, section 1605(a)(7)(B)(ii) of title 28, United States Code, is amended by striking “the claimant or victim was not” and inserting “neither the claimant nor the victim was”.
Approved April 25, 1997.
LEGISLATIVE HISTORY—H.R. 1225 (S. 568): HOUSE REPORTS: No. 105–48 (Comm. on the Judiciary). CONGRESSIONAL RECORD, Vol. 143 (1997):

Apr. 15, considered and passed House.

Apr. 24, considered and passed Senate

 Public Law 105–12: To clarify Federal law with respect to restricting the use of Federal funds in support of assisted suicide. Public Law12 Public Law 105–12 111 Stat. 23 1997-04-30 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 23 Public Law105–12 105th Congress
An Act To clarify Federal law with respect to restricting the use of Federal funds in support of assisted suicide.

Apr. 30, 1997

[H.R. 1003]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Assisted Suicide Funding Restriction Act of 1997.

42 USC 14401 note.
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.—This Act may be cited as the “Assisted Suicide Funding Restriction Act of 1997”. (b) Table of Contents.—The table of contents of this Act is as follows: Sec. 1. Sec. 2. Sec. 3. Sec. 4. Sec. 5. Sec. 6. Sec. 7. Sec. 8. Sec. 9. Sec. 10. Sec. 11. Sec. 12.
SEC. 2. FINDINGS AND PURPOSE.

42 USC 14401.

 (a) Findings.—Congress finds the following: (1) The Federal Government provides financial support for the provision of and payment for health care services, as well as for advocacy activities to protect the rights of individuals. (2) Assisted suicide, euthanasia, and mercy killing have been criminal offenses throughout the United States and, under current law, it would be unlawful to-provide services in support of such illegal activities. (3) Because of recent legal developments, it may become lawful in areas of the United States to furnish services in support of such activities. (4) Congress is not providing Federal financial assistance in support of assisted suicide, euthanasia, and mercy killing and intends that Federal funds not be used to promote such activities. (b) Purpose.—It is the principal purpose of this Act to continue current Federal policy by providing explicitly that Federal funds may not be used to pay for items and services (including assistance) the purpose of which is to cause (or assist in causing) the suicide, euthanasia, or mercy killing of any individual.
SEC. 3. RESTRICTION ON USE OF FEDERAL FUNDS UNDER HEALTH CARE PROGRAMS.

42 USC 14402.

 (a) Restriction on Federal Funding of Health Care Services.—Subject to subsection (b), no funds appropriated by Congress for the purpose of paying (directly or indirectly) for the provision of health care services may be used— (1) to provide any health care item or service furnished for the purpose of causing, or for the purpose of assisting in causing, the death of any individual, such as by assisted suicide, euthanasia, or mercy killing;111 STAT. 24 (2) to pay (directly, through payment of Federal financial participation or other matching payment, or otherwise) for such an item or .service, including payment of expenses relating to such an item or service; or (3) to pay (in whole or in part) for health benefit coverage that includes any coverage of such an item or service or of any expenses relating to such an item or service. (b) Construction and Treatment of Certain Services.—Nothing in subsection (a), or in any other provision of this Act (or in any amendment made by this Act), shall be construed to apply to or to affect any limitation relating to— (1) the withholding or withdrawing of medical treatment or medical care; (2) the withholding or withdrawing of nutrition or hydration; (3) abortion; or (4) the use of an item, good, benefit, or service furnished for the purpose of alleviating pain or discomfort, even if such use may increase the risk of death, so long as such item, good, benefit, or service is not also furnished for the purpose of causing, or the purpose of assisting in causing, death, for any reason. (c) Limitation on Federal Facilities and Employees.—Subject to subsection (b), with respect to health care items and services furnished— (1) by or in a health care facility owned or operated by the Federal government, or (2) by any physician or other individual employed by the Federal government to provide health care services within the scope of the physician’s or individual’s employment, no such item or service may be furnished for the purpose of causing, or for the purpose of assisting in causing, the death of any individual, such as by assisted suicide, euthanasia, or mercy killing. (d) List of Programs to Which Restrictions Apply.— (1) Federal health care funding programs.—Subsection (a) applies to funds appropriated under or to carry out the following: (A) Medicare program.—Title XVIII of the Social Security Act. (B) Medicaid program.—Title XIX of the Social Security Act. (C) Title xx social services block grant.—Title XX of the Social Security Act. (D) Maternal and child health block grant program.—Title V of the Social Security Act. (E) Public health service act.—The Public Health Service Act. (F) Indian health care improvement act.—The Indian Health Care Improvement Act. (G) Federal employees health benefits program.—Chapter 89 of title 5, United States Code. (H) Military health care system (including tricare and champus programs).—Chapter 55 of title 10, United States Code. (I) Veterans medical care.—Chapter 17 of title 38, United States Code. (J) Health services for peace corps volunteers.—Section 5(e) of the Peace Corps Act (22 U.S.C. 2504(e)). (K) Medical services for federal prisoners.—Section 4005(a) of title 18, United States Code. (2) Federal facilities and personnel.—The provisions of subsection (c) apply to facilities and personnel of the following: (A) Military health care system.—The Department of Defense operating under chapter 55 of title 10, United States Code.111 STAT. 25 (B) Veterans medical care.—The Veterans Health Administration of the Department of Veterans Affairs. (C) Public health service.—The Public Health Service. (3) Nonexclusive list.—Nothing in this subsection shall be construed as limiting the application of subsection (a) to the programs specified in paragraph (1) or the application of subsection (c) to the facilities and personnel specified in paragraph (2).
SEC. 4. RESTRICTION ON USE OF FEDERAL FUNDS UNDER CERTAIN GRANT PROGRAMS UNDER THE DEVELOPMENTAL DISABILITIES ASSISTANCE AND BILL OF RIGHTS ACT.

42 USC 14403.

 Subject to section 3(b) (relating to construction and treatment of certain services), no funds appropriated by Congress to carry out part B, D, or E of the Developmental Disabilities Assistance and Bill of Rights Act may be used to support or fund any program or service which has a purpose of assisting in procuring any item, benefit, or service furnished for the purpose of causing, or the purpose of assisting in causing, the death of any individual, such as by assisted suicide, euthanasia, or mercy killing.
SEC. 5. RESTRICTION ON USE OF FEDERAL FUNDS BY ADVOCACY PROGRAMS.

42 USC 14404.

 (a) In General.—Subject to section 3(b) (relating to construction and treatment of certain services), no funds appropriated by Congress may be used to assist in, to support, or to fund any activity or service which has a purpose of assisting in, or to bring suit or provide any other form of legal assistance for the purpose of— (1) securing or funding any item, benefit, program, or service furnished for the purpose of causing, or the purpose of assisting in causing, the suicide, euthanasia, or mercy killing of any individual; (2) compelling any person, institution, governmental entity to provide or fund any item, benefit, program, or service for such purpose; or (3) asserting or advocating a legal right to cause, or to assist in causing, the suicide, euthanasia, or mercy killing of any individual. (b) List of Programs to Which Restrictions Apply.— (1) In general.—Subsection (a) applies to funds appropriated under or to carry out the following: (A) Protection and advocacy systems under the developmental disabilities assistance and bill of rights act.—Part C of the Developmental Disabilities Assistance and Bill of Rights Act. (B) Protection and advocacy systems under the protection and advocacy for mentally ill individuals act.—The Protection and Advocacy for Mentally Ill Individuals Act of 1986. (C) Protection and advocacy systems under the rehabilitation act of 1973.—Section 509 of the Rehabilitation Act of 1973 (29 U.S.C. 794e). (D) Ombudsman programs under the older americans act of 1965.—Ombudsman programs under the Older Americans Act of 1965. (E) Legal assistance.—Legal assistance programs under the Legal Services Corporation Act. (2) Nonexclusive list.—Nothing in this subsection shall be construed as limiting the application of subsection (a) to the programs specified in paragraph (1).
SEC. 6. RESTRICTION ON USE OF OTHER FEDERAL FUNDS.

42 USC 14405.

 (a) In General.—Subject to section 3(b) (relating to construction and treatment of certain services) and subsection (b) of this section, no funds appropriated by the Congress shall be used to provide, procure, furnish, or fund any item, good, benefit, activity, 111 STAT. 26or service, furnished or performed for the purpose of causing, or assisting in causing, the suicide, euthanasia, or mercy killing of any individual. (b) Nonduplication.—Subsection (a) shall not apply to funds to which section 3, 4, or 5 applies, except that subsection (a), rather than section 3, shall apply to funds appropriated to carry out title 10, United States Code (other than chapter 55), title 18, United States Code (other than section 4005(a)), and chapter 37 of title 28, United States Code.
SEC. 7.

42 USC 14406.

 CLARIFICATION WITH RESPECT TO ADVANCE DIRECTIVES. Subject to section 3(b) (relating to construction and treatment of certain services), sections 1866(f) and 1902(w) of the Social Security Act shall not be construed— (1) to require any provider or organization, or any employee of such a provider or organization, to inform or counsel any individual regarding any right to obtain an item or service furnished for the purpose of causing, or the purpose of assisting in causing, the death of the individual, such as by assisted suicide, euthanasia, or mercy killing; or (2) to apply to or to affect any requirement with respect to a portion of an advance directive that directs the purposeful causing of, or the purposeful assisting in causing, the death of any individual, such as by assisted suicide, euthanasia, or mercy killing.
SEC. 8.

42 USC 14407.

 APPLICATION TO DISTRICT OF COLUMBIA. For purposes of this Act, the term “funds appropriated by Congress” includes funds appropriated to the District of Columbia pursuant to an authorization of appropriations under title V of the District of Columbia Self-Government and Governmental Reorganization Act and the term “Federal government” includes the government of the District of Columbia.
SEC. 9. CONFORMING AMENDMENTS. (a) Medicare Program.— (1) Funding.—Section 1862(a) of the Social Security Act (42 U.S.C. 1395y(a)) is amended— (A) by striking “or” at the end of paragraph (14); (B) by striking the period at the end of paragraph (15) and inserting “; or”; and (C) by inserting after paragraph (15) the following new paragraph: “(16) in the case in which funds may not be used for such items and services under the Assisted Suicide Funding Restriction Act of 1997.”. (2) Advance directives.—Section 1866(f) of such Act (42 U.S.C. 1395cc(f)) is amended by adding at the end the following new paragraph: “(4) For construction relating to this subsection, see section 7 of the Assisted Suicide Funding Restriction Act of 1997 (relating to clarification respecting assisted suicide, euthanasia, and mercy killing).”. (b) Medicaid Program.— (1) Funding.—Section 1903(i) of the Social Security Act (42 U.S.C. 1396b(i)) is amended— (A) by striking “or” at the end of paragraph (14); (B) by striking the period at the end of paragraph (15) and inserting “; or” and (C) by inserting after paragraph (15) the following new paragraph: “(16) with respect to any amount expended for which funds may not be used under the Assisted Suicide Funding Restriction Act of 1997.”. (2) Advance directives.—Section 1902(w) of such Act (42 U.S.C. 1396a(w)) is amended by adding at the end the following new paragraph:111 STAT. 27 “(5) For construction relating to this subsection, see section 7 of the Assisted Suicide Funding Restriction Act of 1997 (relating to clarification respecting assisted suicide, euthanasia, and mercy killing).”. (c) Title XX Block Grant Program.—Section 2005(a) of the Social Security Act (42 U.S.C. 1397d(a)) is amended— (1) by striking “or” at the end of paragraph (8); (2) by striking the period at the end of paragraph (9) and inserting “; or”; and (3) by adding at the end the following: “(10) in a manner inconsistent with the Assisted Suicide Funding Restriction Act of 1997.”. (d) Maternal and Child Health Block Grant Program.—Section 501(a) of the Social Security Act (42 U.S.C. 701(a)) is amended by adding at the end the following:

“Funds appropriated under this section may only be used in a manner consistent with the Assisted Suicide Funding Restriction Act of 1997.”.

 (e) Public Health Service Act.—Title II of the Public Health Service Act (42 U.S.C. 201 et seq.) is amended by adding at the end thereof the following new section:
“SEC. 246. RESTRICTION ON USE OF FUNDS FOR ASSISTED SUICIDE, EUTHANASIA, AND MERCY KILLING.

42 USC 238o.

 “Appropriations for carrying out the purposes of this Act shall not be used in a manner inconsistent with the Assisted Suicide Funding Restriction Act of 1997.”.
(f) Indian Health Care Improvement Act.—Title II of the Indian Health Care Improvement Act (25 U.S.C. 1621 et seq.) is amended by adding at the end the following new section: “limitation on use of funds
“Sec. 225. Amounts appropriated to carry out this title may

25 USC 1621x.

 not be used in a manner inconsistent with the Assisted Suicide Funding Restriction Act of 1997.”.
(g) Federal Employees Health Benefit Program.—Section 8902 of title 5, United States Code, is amended by adding at the end the following: “(o) A contract may not be made or a plan approved which includes coverage for any benefit, item, or service for which funds may not be used under the Assisted Suicide Funding Restriction Act of 1997”. (h) Military Health Care Program.—Section 1073 of title 10, United States Code, is amended by adding at the end the following: “This chapter shall be administered consistent with the Assisted Suicide Funding Restriction Act of 1997.” (i) Veterans’ Medical Care Program.— (1) In general.—Subchapter I of chapter 17 of title 38, United States Code, is amended by adding at the end the following new section:
“§ 1707. Restriction on use of funds for assisted suicide, euthanasia, or mercy killing “Funds appropriated to carry out this chapter may not be used for purposes that are inconsistent with the Assisted Suicide Funding Restriction Act of 1997.”.
(2) Clerical Amendment.—The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 1706 the following new item: “1707. (j) Health Care Provided for Peace Corps Volunteers.—Section 5(e) of the Peace Corps Act (22 U.S.C. 2504(e)) is amended by adding at the end the following: “Health care may not be provided under this subsection in a manner inconsistent with the Assisted Suicide Funding Restriction Act of 1997.”.111 STAT. 28 (k) Medical Services for Federal Prisoners.—Section 4005(a) of title 18, United States Code, is amended by inserting “and to the extent consistent with the Assisted Suicide Funding Restriction Act of 1997”after “Upon request of the Attorney General”. (l) Developmental Disabilities and Bill of Rights Act.— (1) State plans regarding developmental disabilities councils.—Section 122(c)(5)(A) of the Developmental Disabilities Assistance and Bill of Rights Act (42 U.S.C. 6022(c)(5)(A)) is amended— (A) in clause (vi), by striking “and” after the semicolon at the end; (B) in clause (vii), by striking the period at the end and inserting “; and”; and (C) by adding at the end the following clause: “(viii) such funds will be used consistent with section 4 of the Assisted Suicide Funding Restriction Act of 1997.”. (2) Legal actions by protection and advocacy systems.—Section 142(h) of such Act (42 U.S.C. 6042(h)) is amended by adding at the end the following new paragraph: “(3) Limitation.—The systems may only use assistance provided under this chapter consistent with section 5 of the Assisted Suicide Funding Restriction Act of 1997.”. (3) University affiliated programs.—Section 152(b)(5) of such Act (42 U.S.C. 6062(b)(5)) is amended by adding at the end the following: “Such grants shall not be used in a manner inconsistent with section 4 of the Assisted Suicide Funding Restriction Act of 1997.”. (4) Grants of national significance.—Section 162(c) of such Act (42 U.S.C. 6082(c)) is amended— (A) by striking “and” at the end of paragraph (4); (B) by striking the period at the end of paragraph (5) and inserting “; and”; and (C) by adding at the end the following new paragraph: “(6) the applicant provides assurances that the grant will not be used in a manner inconsistent with section 4 of the Assisted Suicide Funding Restriction Act of 1997.”. (m) Protection and Advocacy for Mentally Ill Individuals Act of 1986.—Section 105(a) of the Protection and Advocacy for Mentally Ill Individuals Act of 1986 (42 U.S.C. 10805(a)) is amended— (1) in paragraph (8), by striking “and” at the end; (2) in paragraph (9), by striking the period and inserting “; and”; and (3) by adding at the end thereof the following new paragraph: “(10) not use allotments provided to a system in a manner inconsistent with section 5 of the Assisted Suicide Funding Restriction Act of 1997.”. (n) Protection and Advocacy Systems Under the Rehabilitation Act of 1973.—Section 509(f) of the Rehabilitation Act of 1973 (29 U.S.C. 794e(f)) is amended— (1) in paragraph (6), by striking “and” after the semicolon at the end; (2) in paragraph (7), by striking the period at the end and inserting “; and”; and (3) by adding at the end the following paragraph: “(8) not use allotments provided under this section in a manner inconsistent with section 5 of the Assisted Suicide Funding Restriction Act of 1997.”. (o) Legal Services Program.—Section 1007(b) of the Legal Services Corporation Act (42 U.S.C. 2996f(b)) is amended— (1) by striking “or” at the end of paragraph (9); (2) by striking the period at the end of paragraph (10) and inserting “; or”; and (3) by adding after paragraph (10) the following:111 STAT. 29 “(11) to provide legal assistance in a manner inconsistent with the Assisted Suicide Funding Restriction Act of 1997.”. (p) Construction on Conforming Amendments.—The fact

42 USC 14401 note.

 that a law is not amended under this section shall not be construed as indicating that the provisions of this Act do not apply to such a law.
SEC. 10. RELATION TO OTHER LAWS.

42 USC 14408.

 The provisions of this Act supersede other Federal laws (including laws enacted after the date of the enactment of this Act) except to the extent such laws specifically supersede the provisions of this Act.
SEC. 11. EFFECTIVE DATE.

42 USC 14401 note.

 (a) In General.—The provisions of this Act (and the amendments made by this Act) take effect upon its enactment and apply, subject to subsection (b), to Federal payments made pursuant to obligations incurred after the date of the enactment of this Act for items and services provided on or after such date. (b) Application to Contracts.—Such provisions shall apply with respect to contracts entered into, renewed, or extended after the date of the enactment of this Act and shall also apply to a contract entered into before such date to the extent permitted under such contract.
SEC. 12. SUICIDE PREVENTION (INCLUDING ASSISTED SUICIDE). (a) Purpose.—The purpose of this section is to reduce the

42 USC 295 note.

 rate of suicide (including assisted suicide) among persons with disabilities or terminal or chronic illness by furthering knowledge and practice of pain management, depression identification and treatment, and issues related to palliative care and suicide prevention. (b) Research and Demonstration Projects.—Section 781 of the Public Health Service Act (42 U.S.C. 295) is amended— (1) by redesignating subsection (e) as subsection (f); and (2) by inserting after subsection (d) the following new subsection: “(e) Research and Demonstration Projects on Suicide Prevention (Including Assisted Suicide).— “(1) Research.—The Secretary may make grants to and enter into contracts with public and private entities for conducting research intended to reduce the rate of suicide (including assisted suicide) among persons with disabilities or terminal or chronic illness. The Secretary shall give preference to research that aims— “(A) to assess the quality of care received by patients with disabilities’ or terminal or chronic illness by measuring and reporting specific outcomes; “(B) to compare coordinated health care (which may include coordinated rehabilitation services, symptom control, psychological support, and community-based support services) to traditional health care delivery systems; or “(C) to advance biomedical knowledge of pain management. “(2) Training.—The Secretary may make grants and enter into contracts to assist public and private entities, schools, academic health science centers, and hospitals in meeting the costs of projects intended to reduce the rate of suicide (including assisted suicide) among persons with disabilities or terminal or chronic illness. The Secretary shall give preference to qualified projects that will— “(A) train health care practitioners in pain management, depression identification and treatment, and issues related to palliative care and suicide prevention; “(B) train the faculty of health professions schools in pain management, depression identification and treatment, and issues related to palliative care and suicide prevention; or111 STAT. 30 “(C) develop and implement curricula regarding disability issues, including living with disabilities, living with chronic or terminal illness, attendant and personal care, assistive technology, and social support services. “(3) Demonstration projects.—The Secretary may make grants to and enter into contracts with public and nonprofit private entities for the purpose of conducting demonstration projects that will— “(A) reduce restrictions on access to hospice programs; or “(B) fund home health care services, community living arrangements, and attendant care services. “(4) Palliative medicine.—The Secretary shall emphasize palliative medicine among its funding and research priorities.”. (c)

42 USC 295 note.

 Report by General Accounting Office.—Not later than 1 year after the date of enactment of this Act, the Comptroller General of the United States shall submit to the Congress a report providing an assessment of programs under subsection (e) of section 781 of the Public Health Service Act (as added by subsection (b) of this section) to conduct research, provide training, and develop curricula and of the curricula offered and used by schools of medicine and osteopathic medicine in pain management, depression identification and treatment, and issues related to palliative care and suicide prevention. The purpose of the assessment shall be to determine the extent to which such programs have furthered knowledge and practice of pain management, depression identification and treatment, and issues related to palliative care and suicide prevention.
Approved April 30, 1997.
LEGISLATIVE HISTORY—H.R. 1003: HOUSE REPORTS: No. 105–46, Pt. 1 (Comm. on Commerce). CONGRESSIONAL RECORD. Vol. 143 (1997):

Apr. 10. considered and passed House.

Apr. 16, considered and passed Senate.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):

Apr. 30, Presidential statement.

 Public Law 105–13: To extend the term of appointment of certain members of the Prospective Payment Assessment Commission and the Physician Payment Review Commission. Public Law13 Public Law 105–13 111 Stat. 31 1997-05-14 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 31 Public Law105–13 105th Congress
An Act To extend the term of appointment of certain members of the Prospective Payment Assessment Commission and the Physician Payment Review Commission.

May 14, 1997

[H.R. 1001]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. EXTENSION OF TERM OF APPOINTMENT OF CERTAIN MEMBERS OF THE PROSPECTIVE PAYMENT ASSESSMENT COMMISSION AND THE PHYSICIAN PAYMENT REVIEW COMMISSION.

42 USC 1395w–1 note.

 In the case of an individual who is appointed as a member of the Prospective Payment Assessment Commission or of the Physician Payment Review Commission and whose term of appointment would otherwise expire during 1997, such term of appointment is hereby extended to expire as of May 1, 1998.
Approved May 14, 1997.
LEGISLATIVE HISTORY—H.R. 1001: HOUSE REPORTS: No. 105–49, Pt. 1 (Comm. on Ways and Means) and Pt. 2 (Comm. on Commerce). CONGRESSIONAL RECORD, Vol. 143 (1997):

Apr. 15, considered and passed House.

Apr. 30, considered and passed Senate.

 Public Law 105–14: To authorize the President to award a gold medal on behalf of the Congress to Francis Albert “Frank” Sinatra in recognition of his outstanding and enduring contributions through his entertainment career and humanitarian activities, and for other purposes. Public Law14 Public Law 105–14 111 Stat. 32 1997-05-14 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 32 Public Law105–14 105th Congress
An Act To authorize the President to award a gold medal on behalf of the Congress to Francis Albert “Frank” Sinatra in recognition of his outstanding and enduring contributions through his entertainment career and humanitarian activities, and for other purposes.

May 14, 1997

[S. 305]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1.

31 USC 5111 note.

 FINDINGS. The Congress finds that— (1) Francis Albert “Frank” Sinatra has touched the lives of millions around the world and across generations through his outstanding career in entertainment, which has spanned more than 5 decades; (2) Frank Sinatra has significantly contributed to the entertainment industry through his endeavors as a producer, director, actor, and gifted vocalist; (3) the humanitarian contributions of Frank Sinatra have been recognized in the forms of a Lifetime Achievement Award from the NAACP, the Jean Hersholt Humanitarian Award from the Academy of Motion Picture Arts and Sciences, the Presidential Medal of Freedom Award, and the George Foster Peabody Award; and (4) the entertainment accomplishments of Frank Sinatra, including the release of more than 50 albums and appearances in more than 60 films, have been recognized in the forms of the Screen Actors Guild Award, the Kennedy Center Honors, 8 Grammy Awards from the National Academy of Recording Arts and Science, 2 Academy Awards from the Academy of Motion Picture Arts and Sciences, and an Emmy Award.
SEC. 2.

31 USC 5111 note.

 CONGRESSIONAL GOLD MEDAL. (a) Presentation Authorized.—The President is authorized to present, on behalf of the Congress, a gold medal of appropriate design to Francis Albert “Frank” Sinatra in recognition of his outstanding and enduring contributions through his entertainment career and numerous humanitarian activities. (b) Design and Striking.—For the purpose of the presentation referred to in subsection (a), the Secretary of the Treasury (hereafter in this Act referred to as the “Secretary”) shall strike a gold medal with suitable emblems, devices, and inscriptions, to be determined by the Secretary.111 STAT. 33
SEC. 3. DUPLICATE MEDALS.

31 USC 5111 note.

 The Secretary may strike and sell duplicates in bronze of the gold medal struck pursuant to section 2 under such regulations as the Secretary may prescribe, and at a price sufficient to cover the costs thereof, including labor, materials, dies, use of machinery, overhead expenses, and the cost of the gold medal.
SEC. 4. NATIONAL MEDALS.

31 USC 5111 note.

 The medals struck pursuant to this Act are national medals for purposes of chapter 51 of title 31, United States Code.
SEC. 5. AUTHORIZATION OF APPROPRIATIONS; PROCEEDS OF SALE.

31 USC 5111 note.

 (a) Authorization of Appropriations.—There is hereby authorized to be charged against the Numismatic Public Enterprise Fund an amount not to exceed $30,000 to pay for the cost of the medal authorized by this Act. (b) Proceeds of Sale.—Amounts received from the sales of duplicate bronze medals under section 3 shall be deposited in the Numismatic Public Enterprise Fund.
Approved May 14, 1997.
LEGISLATIVE HISTORY—S. 305 (H.R. 279): CONGRESSIONAL RECORD, Vol. 143 (1997):

Feb. 26, considered and passed Senate.

Apr. 29, H.R. 279 and S. 305 considered and passed House.

 Public Law 105–15: To amend title XVIII and XIX of the Social Security Act to permit a waiver of the prohibition of offering nurse aide training and competency evaluation programs in certain nursing facilities. Public Law15 Public Law 105–15 111 Stat. 34 1997-05-15 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 34 Public Law105–15 105th Congress
An Act To amend title XVIII and XIX of the Social Security Act to permit a waiver of the prohibition of offering nurse aide training and competency evaluation programs in certain nursing facilities.

May 15, 1997

[H.R. 968]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. PERMITTING WAIVER OF PROHIBITION OF OFFERING NURSE AIDE TRAINING AND COMPETENCY EVALUATION PROGRAMS IN CERTAIN FACILITIES. Section 1819(f)(2) of the Social Security Act (42 U.S.C. 1395i–3(f)(2)) and section 1919(f)(2) of such Act (42 U.S.C. 1396r(f)(2)) are each amended— (1) in subparagraph (B)(iii), by inserting “subject to subparagraph (C),” after “(iii)”; and (2) by adding at the end the following new subparagraph: “(C) Waiver authorized.—Clause (iii)(I) of subparagraph (B) shall not apply to a program offered in (but not by) a nursing facility (or skilled nursing facility for purposes of title XVIII) in a State if the State— “(i) determines that there is no other such program offered within a reasonable distance of the facility, “(ii) assures, through an oversight effort, that an adequate environment exists for operating the program in the facility, and “(iii) provides notice of such determination and assurances to the State long-term care ombudsman.”.
Approved May 15, 1997.
LEGISLATIVE HISTORY—H.R. 968: HOUSE REPORTS: No. 105–23, Pt. 1 (Comm. on Ways and Means) and Pt. 2 (Comm. on Commerce). CONGRESSIONAL RECORD, Vol. 143 (1997):

Apr. 8, considered and passed House.

Apr. 30, considered and passed Senate.

 Public Law 105–16: To authorize the President to award a gold medal on behalf of the Congress to Mother Teresa of Calcutta in recognition of her outstanding and enduring contributions through humanitarian and charitable activities, and for other purposes. Public Law16 Public Law 105–16 111 Stat. 35 1997-06-02 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 35 Public Law105–16 105th Congress
An Act To authorize the President to award a gold medal on behalf of the Congress to Mother Teresa of Calcutta in recognition of her outstanding and enduring contributions through humanitarian and charitable activities, and for other purposes.

June 2, 1997

[H.R. 1650]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. FINDINGS.

31 USC 5111 note.

 The Congress finds that— (1) Mother Teresa of Calcutta has greatly impacted the lives of people in all walks of life in every corner of the world through love and her selfless dedication to humanity and charitable works for nearly 70 years; (2) Mother Teresa has expanded her personal dedication by founding the Missionaries of Charity, which include well over 3,000 members in 25 countries, who devote their entire lives to serving the poor without accepting any material reward in return; (3) Mother Teresa has been recognized as a humanitarian around the world and has been recognized in the form of— (A) the first Pope John XXIII Peace Prize (1971); (B) the Jawaharal Nehru Award for International Understanding (1972); (C) the Nobel Peace Prize (1979); and (D) the Presidential Medal of Freedom (1985); (4) Mother Teresa is a tool of God; (5) God’s love flowing through Mother Teresa has forever impacted the culture and history of the world; and (6) Mother Teresa truly leads by example and shows the people of the world the way to live by love for mankind.
SEC. 2. CONGRESSIONAL GOLD MEDAL.

31 USC 5111 note.

 (a) Presentation Authorized.—The President is authorized to present, on behalf of the Congress, a gold medal of appropriate design to Mother Teresa of Calcutta in recognition of her outstanding and enduring contributions to humanitarian and charitable activities. (b) Design and Striking.—For the purpose of the presentation referred to in subsection (a), the Secretary of the Treasury (hereafter in this Act referred to as the “Secretary”) shall strike a gold medal with suitable emblems, devices, and inscriptions, to be determined by the Secretary.111 STAT. 36
SEC. 3. DUPLICATE MEDALS.

31 USC 5111 note.

 The Secretary may strike and sell duplicates in bronze of the gold medal struck pursuant to section 2 under such regulations as the Secretary may prescribe, and at a price sufficient to cover the costs thereof, including labor, materials, dies, use of machinery, overhead expenses, and the cost of the gold medal.
SEC. 4. NATIONAL MEDALS.

31 USC 5111 note.

 The medals struck pursuant to this Act are national medals for purposes of chapter 51 of title 31, United States Code.
SEC. 5. AUTHORIZATION OF APPROPRIATIONS; PROCEEDS OF SALE.

31 USC 5111 note.

 (a) Authorization of Appropriations.—There is hereby authorized to be charged against the Numismatic Public Enterprise Fund an amount not to exceed $30,000 to pay for the cost of the medal authorized by this Act. (b) Proceeds of Sale.—Amounts received from the sales of duplicate bronze medals under section 3 shall be deposited in the Numismatic Public Enterprise Fund.
Approved June 2, 1997.
LEGISLATIVE HISTORY—H.R. 1650: CONGRESSIONAL RECORD, Vol. 143 (1997):

May 20, considered and passed House.

May 21, considered and passed Senate.

 Public Law 105–17: To amend the Individuals with Disabilities Education Act, to reauthorize and make improvements to that Act, and for other purposes. Public Law17 Public Law 105–17 111 Stat. 37 1997-06-04 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 37 Public Law105–17 105th Congress
An Act To amend the Individuals with Disabilities Education Act, to reauthorize and make improvements to that Act, and for other purposes.

June 4, 1997

[H.R. 5]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Individuals with Disabilities Education Act Amendments of 1997.

Children, youth and families.

Intergovernmental relations.

20 USC 1400 note.
SECTION 1. SHORT TITLE. This Act may be cited as the “Individuals with Disabilities Education Act Amendments of 1997”.
<num value="I">TITLE I—</num><heading>AMENDMENTS TO THE INDIVIDUALS WITH DISABILITIES EDUCATION ACT</heading> <section> <num value="101">SEC. 101.</num> <heading>AMENDMENTS TO THE INDIVIDUALS WITH DISABILITIES EDUCATION ACT.</heading> <content>Parts A through D of the Individuals with Disabilities Education Act (20 U.S.C. 1400 et seq.) are amended to read as follows: <quotedContent> <part> <num value="A">“PART A—</num><heading>GENERAL PROVISIONS</heading> <section> <num value="601">“SEC. 601.</num> <heading>SHORT TITLE; TABLE OF CONTENTS; FINDINGS; PURPOSES.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1400">20 USC 1400</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Short Title</inline>.—</heading><content>This Act may be cited as the ‘Individuals with Disabilities Education Act’.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Table of Contents</inline>.—</heading><content>The table of contents for this Act is as follows: <toc> <referenceItem role="part"><designator>“PART A—</designator><label>GENERAL PROVISIONS</label></referenceItem> <referenceItem role="section"><designator>“Sec. 601.</designator> <label>Short title; table of contents; findings; purposes.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 602.</designator> <label>Definitions.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 603.</designator> <label>Office of Special Education Programs.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 604.</designator> <label>Abrogation of State sovereign immunity.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 605.</designator> <label>Acquisition of equipment; construction or alteration of facilities.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 606.</designator> <label>Employment of individuals with disabilities.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 607.</designator> <label>Requirements for prescribing regulations.</label></referenceItem> <referenceItem role="part"><designator>“PART B—</designator><label>ASSISTANCE FOR EDUCATION OF ALL CHILDREN WITH DISABILITIES</label></referenceItem> <referenceItem role="section"><designator>“Sec. 611.</designator> <label>Authorization; allotment; use of funds; authorization of appropriations.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 612.</designator> <label>State eligibility.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 613.</designator> <label>Local educational agency eligibility.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 614.</designator> <label>Evaluations, eligibility determinations, individualized education programs, and educational placements.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 615.</designator> <label>Procedural safeguards.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 616.</designator> <label>Withholding and judicial review.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 617.</designator> <label>Administration.<page identifier="/us/stat/111/38">111 STAT. 38</page></label></referenceItem> <referenceItem role="section"><designator>“Sec. 618.</designator> <label>Program information.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 619.</designator> <label>Preschool grants.</label></referenceItem> <referenceItem role="part"><designator>“PART C—</designator><label>INFANTS AND TODDLERS WITH DISABILITIES</label></referenceItem> <referenceItem role="section"><designator>“Sec. 631.</designator> <label>Findings and policy.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 632.</designator> <label>Definitions.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 633.</designator> <label>General authority.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 634.</designator> <label>Eligibility.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 635.</designator> <label>Requirements for statewide system.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 636.</designator> <label>Individualized family service plan.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 637.</designator> <label>State application and assurances.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 638.</designator> <label>Uses of Binds.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 639.</designator> <label>Procedural safeguards.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 640.</designator> <label>Payor of last resort.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 641.</designator> <label>State Interagency Coordinating Council.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 642.</designator> <label>Federal administration.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 643.</designator> <label>Allocation of funds.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 644.</designator> <label>Federal Interagency Coordinating Council.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 645.</designator> <label>Authorization of appropriations.</label></referenceItem> <referenceItem role="part"><designator>“PART D—</designator><label>NATIONAL ACTIVITIES TO IMPROVE EDUCATION OF CHILDREN WITH DISABILITIES</label></referenceItem> <referenceItem role="subpart"><designator>“SUBPART 1—</designator><label>STATE PROGRAM IMPROVEMENT GRANTS FOR CHILDREN WITH DISABILITIES</label></referenceItem> <referenceItem role="section"><designator>“Sec. 651.</designator> <label>Findings and purpose.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 652.</designator> <label>Eligibility and collaborative process.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 653.</designator> <label>Applications.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 654.</designator> <label>Use of hinds.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 655.</designator> <label>Minimum State grant amounts.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 656.</designator> <label>Authorization of appropriations.</label></referenceItem> <referenceItem role="subpart"><designator>“SUBPART 2—</designator><label>COORDINATED RESEARCH, PERSONNEL PREPARATION, TECHNICAL ASSISTANCE, SUPPORT, AND DISSEMINATION OF INFORMATION</label></referenceItem> <referenceItem role="section"><designator>“Sec. 661.</designator> <label>Administrative provisions.</label></referenceItem> <referenceItem role="chapter"><designator>“CHAPTER 1—</designator><label>IMPROVING EARLY INTERVENTION, EDUCATIONAL, AND TRANSITIONAL SERVICES AND RESULTS FOR CHILDREN WITH DISABILITIES THROUGH COORDINATED RESEARCH AND PERSONNEL PREPARATION</label></referenceItem> <referenceItem role="section"><designator>“Sec. 671.</designator> <label>Findings and purpose.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 672.</designator> <label>Research and innovation to improve services and results for children with disabilities.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 673.</designator> <label>Personnel preparation to improve services and results for children with disabilities.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 674.</designator> <label>Studies and evaluations.</label></referenceItem> <referenceItem role="chapter"><designator>“CHAPTER 2—</designator><label>IMPROVING EARLY INTERVENTION, EDUCATIONAL, AND TRANSITIONAL SERVICES AND RESULTS FOR CHILDREN WITH DISABILITIES THROUGH COORDINATED TECHNICAL ASSISTANCE, SUPPORT, AND DISSEMINATION OF INFORMATION</label></referenceItem> <referenceItem role="section"><designator>“Sec. 681.</designator> <label>Findings and purposes.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 682.</designator> <label>Parent training and information centers.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 683.</designator> <label>Community parent resource centers.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 684.</designator> <label>Technical assistance for parent training and information centers.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 685.</designator> <label>Coordinated technical assistance and dissemination.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 686.</designator> <label>Authorization of appropriations.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 687.</designator> <label>Technology development, demonstration, and utilization, and media services.</label></referenceItem> </toc> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>The Congress finds the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>Disability is a natural part of the human experience and in no way diminishes the right of individuals to participate in or contribute to society. Improving educational results for children with disabilities is an essential element of our national policy of ensuring equality of opportunity, full participation, independent living, and economic self-sufficiency for individuals with disabilities.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <chapeau>Before the date of the enactment of the Education for All Handicapped Children Act of 1975 (Public Law 94–142)—<page identifier="/us/stat/111/39">111 STAT. 39</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the special educational needs of children with disabilities were not being fully met;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>more than one-half of the children with disabilities in the United States did not receive appropriate educational services that would enable such children to have full equality of opportunity;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>1,000,000 of the children with disabilities in the United States were excluded entirely from the public school system and did not go through the educational process with their peers;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>there were many children with disabilities throughout the United States participating in regular school programs whose disabilities prevented such children from having a successful educational experience because their disabilities were undetected; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>because of the lack of adequate services within the public school system, families were often forced to find services outside the public school system, often at great distance from their residence and at their own expense.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>Since the enactment and implementation of the Education for All Handicapped Children Act of 1975, this Act has been successful in ensuring children with disabilities and the families of such children access to a free appropriate public education and in improving educational results for children with disabilities.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>However, the implementation of this Act has been impeded by low expectations, and an insufficient focus on applying replicable research on proven methods of teaching and learning for children with disabilities.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <chapeau>Over 20 years of research and experience has demonstrated that the education of children with disabilities can be made more effective by—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>having high expectations for such children and ensuring their access in the general curriculum to the maximum extent possible;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>strengthening the role of parents and ensuring that families of such children have meaningful opportunities to participate in the education of their children at school and at home;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>coordinating this Act with other local, educational service agency, State, and Federal school improvement efforts in order to ensure that such children benefit from such efforts and that special education can become a service for such children rather than a place where they are sent;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>providing appropriate special education and related services and aids and supports in the regular classroom to such children, whenever appropriate;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <chapeau>supporting high-quality, intensive professional development for all personnel who work with such children in order to ensure that they have the skills and knowledge necessary to enable them—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>to meet developmental goals and, to the maximum extent possible, those challenging expectations that have been established for all children; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>to be prepared to lead productive, independent, adult lives, to the maximum extent possible;<page identifier="/us/stat/111/40">111 STAT. 40</page></content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>providing incentives for whole-school approaches and pre-referral intervention to reduce the need to label children as disabled in order to address their learning needs; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <content>focusing resources on teaching and learning while reducing paperwork and requirements that do not assist in improving educational results.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>While States, local educational agencies, and educational service agencies are responsible for providing an education for all children with disabilities, it is in the national interest that the Federal Government have a role in assisting State and local efforts to educate children with disabilities in order to improve results for such children and to ensure equal protection of the law.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num><subparagraph class="inline"><num value="A">(A)</num> <content>The Federal Government must be responsive to the growing needs of an increasingly more diverse society. A more equitable allocation of resources is essential for the Federal Government to meet its responsibility to provide an equal educational opportunity for all individuals.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B)</num> <content>America’s racial profile is rapidly changing. Between 1980 and 1990, the rate of increase in the population for white Americans was 6 percent, while the rate of increase for racial and ethnic minorities was much higher: 53 percent for Hispanics, 13.2 percent for African-Americans, and 107.8 percent for Asians.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">“(C)</num> <content>By the year 2000, this Nation will have 275,000,000 people, nearly one of every three of whom will be either African-American, Hispanic, Asian-American, or American Indian.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="D">“(D)</num> <content>Taken together as a group, minority children are comprising an ever larger percentage of public school students. Large-city school populations are overwhelmingly minority, for example: for fall 1993, the figure for Miami was 84 percent; Chicago, 89 percent; Philadelphia, 78 percent; Baltimore, 84 percent; Houston, 88 percent; and Los Angeles, 88 percent.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="E">“(E)</num> <content>Recruitment efforts within special education must focus on bringing larger numbers of minorities into the profession in order to provide appropriate practitioner knowledge, role models, and sufficient manpower to address the clearly changing demography of special education.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="F">“(F)</num> <content>The limited English proficient population is the fastest growing in our Nation, and the growth is occurring in many parts of our Nation. In the Nation’s 2 largest school districts, limited English proficient students make up almost half of all students initially entering school at the kindergarten level. Studies have documented apparent discrepancies in the levels of referral and placement of limited English proficient children in special education. The Department of Education has found that services provided to limited English proficient students often do not respond primarily to the pupil’s academic needs. These trends pose special challenges for special education in the referral, assessment, and services for our Nation’s students from non-English language backgrounds.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num><subparagraph class="inline"><num value="A">(A)</num> <content>Greater efforts are needed to prevent the intensification of problems connected with mislabeling and high dropout rates among minority children with disabilities.<page identifier="/us/stat/111/41">111 STAT. 41</page></content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B)</num> <content>More minority children continue to be served in special education than would be expected from the percentage of minority students in the general school population.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">“(C)</num> <content>Poor African-American children are 2.3 times more likely to be identified by their teacher as having mental retardation than their white counterpart.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="D">“(D)</num> <content>Although African-Americans represent 16 percent of elementary and secondary enrollments, they constitute 21 percent of total enrollments in special education.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="E">“(E)</num> <content>The drop-out rate is 68 percent higher for minorities than for whites.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="F">“(F)</num> <content>More than 50 percent of minority students in large cities drop out of school.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="9">“(9)</num><subparagraph class="inline"><num value="A">(A)</num> <content>The opportunity for full participation in awards for grants and contracts; boards of organizations receiving funds under this Act; and peer review panels; and training of professionals in the area of special education by minority individuals, organizations, and historically black colleges and universities is essential if we are to obtain greater success in the education of minority children with disabilities.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B)</num> <content>In 1993, of the 915,000 college and university professors, 4.9 percent were African-American and 2.4 percent were Hispanic. Of the 2,940,000 teachers, prekindergarten through high school, 6.8 percent were African-American and 4.1 percent were Hispanic.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">“(C)</num> <content>Students from minority groups comprise more than 50 percent of K–12 public school enrollment in seven States yet minority enrollment in teacher training programs is less than 15 percent in all but six States.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="D">“(D)</num> <content>As the number of African-American and Hispanic students in special education increases, the number of minority teachers and related service personnel produced in our colleges and universities continues to decrease.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="E">“(E)</num> <content>Ten years ago, 12 percent of the United States teaching force in public elementary and secondary schools were members of a minority group. Minorities comprised 21 percent of the national population at that time and were clearly underrepresented then among employed teachers. Today, the elementary and secondary teaching force is 13 percent minority, while one-third of the students in public schools are minority children.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="F">“(F)</num> <content>As recently as 1991, historically black colleges and universities enrolled 44 percent of the African-American teacher trainees in the Nation. However, in 1993, historically black colleges and universities received only 4 percent of the discretionary funds for special education and related services personnel training under this Act.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="G">“(G)</num> <content>While African-American students constitute 28 percent of total enrollment in special education, only 11.2 percent of individuals enrolled in preservice training programs for special education are African-American.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="H">“(H)</num> <content>In 1986–87, of the degrees conferred in education at the B.A., M.A., and Ph.D. levels, only 6, 8, and 8 percent, respectively, were awarded to African-American or Hispanic students.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="10">“(10)</num> <content>Minorities and underserved persons are socially disadvantaged because of the lack of opportunities in training and educational programs, undergirded by the practices in the <page identifier="/us/stat/111/42">111 STAT. 42</page>private sector that impede their full participation in the mainstream of society.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Purposes</inline>.—</heading><chapeau>The purposes of this title are—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num><subparagraph class="inline"><num value="A">(A)</num> <content>to ensure that all children with disabilities have available to them a free appropriate public education that emphasizes special education and related services designed to meet their unique needs and prepare them for employment and independent living;</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B)</num> <content>to ensure that the rights of children with disabilities and parents of such children are protected; and</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">“(C)</num> <content>to assist States, localities, educational service agencies, and Federal agencies to provide for the education of all children with disabilities;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>to assist States in the implementation of a statewide, comprehensive, coordinated, multidisciplinary, interagency system of early intervention services for infants and toddlers with disabilities and their families;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>to ensure that educators and parents have the necessary tools to improve educational results for children with disabilities by supporting systemic-change activities; coordinated research and personnel preparation; coordinated technical assistance, dissemination, and support; and technology development and media services; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>to assess, and ensure the effectiveness of, efforts to educate children with disabilities.</content></paragraph> </subsection> </section> <section> <num value="602">“SEC. 602.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1401">20 USC 1401</ref>.</p></sidenote> <heading>DEFINITIONS.</heading> <chapeau>“Except as otherwise provided, as used in this Act:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Assistive technology device</inline>.—</heading><content>The term ‘assistive technology device’ means any item, piece of equipment, or product system, whether acquired commercially off the shelf, modified, or customized, that is used to increase, maintain, or improve functional capabilities of a child with a disability.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Assistive technology service</inline>.—</heading><chapeau>The term ‘assistive technology service’ means any service that directly assists a child with a disability in the selection, acquisition, or use of an assistive technology device. Such term includes—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the evaluation of the needs of such child, including a functional evaluation of the child in the child’s customary environment;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>purchasing, leasing, or otherwise providing for the acquisition of assistive technology devices by such child;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>selecting, designing, fitting, customizing, adapting, applying, maintaining, repairing, or replacing of assistive technology devices;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>coordinating and using other therapies, interventions, or services with assistive technology devices, such as those associated with existing education and rehabilitation plans and programs;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>training or technical assistance for such child, or, where appropriate, the family of such child; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>training or technical assistance for professionals (including individuals providing education and rehabilitation services), employers, or other individuals who provide services to, employ, or are otherwise substantially involved in the major life functions of such child.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Child with a disability</inline>.—<page identifier="/us/stat/111/43">111 STAT. 43</page></heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘child with a disability’ means a child—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>with mental retardation, hearing impairments (including deafness), speech or language impairments, visual impairments (including blindness), serious emotional disturbance (hereinafter referred to as ‘emotional disturbance’), orthopedic impairments, autism, traumatic brain injury, other health impairments, or specific learning disabilities; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>who, by reason thereof, needs special education and related services.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Child aged 3 through 9</inline>.—</heading><chapeau>The term ‘child with a disability’ for a child aged 3 through 9 may, at the discretion of the State and the local educational agency, include a child—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>experiencing developmental delays, as defined by the State and as measured by appropriate diagnostic instruments and procedures, in one or more of the following areas: physical development, cognitive development, communication development, social or emotional development, or adaptive development; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>who, by reason thereof, needs special education and related services.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Educational service agency</inline>.—</heading><chapeau>The term ‘educational service agency’—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>means a regional public multiservice agency—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>authorized by State law to develop, manage, and provide services or programs to local educational agencies; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>recognized as an administrative agency for purposes of the provision of special education and related services provided within public elementary and secondary schools of the State; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>includes any other public institution or agency having administrative control and direction over a public elementary or secondary school.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Elementary school</inline>.—</heading><content>The term ‘elementary school’ means a nonprofit institutional day or residential school that provides elementary education, as determined under State law.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Equipment</inline>.—</heading><chapeau>The term ‘equipment’ includes—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>machinery, utilities, and built-in equipment and any necessary enclosures or structures to house such machinery, utilities, or equipment; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>all other items necessary for the functioning of a particular facility as a facility for the provision of educational services, including items such as instructional equipment and necessary furniture; printed, published, and audio-visual instructional materials; telecommunications, sensory, and other technological aids and devices; and books, periodicals, documents, and other related materials.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Excess costs</inline>.—</heading><chapeau>The term ‘excess costs’ means those costs that are in excess of the average annual per-student expenditure in a local educational agency during the preceding school year for an elementary or secondary school student, as may be appropriate, and which shall be computed after deducting—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>amounts received—<page identifier="/us/stat/111/44">111 STAT. 44</page></chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>under part B of this title;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>under part A of title I of the Elementary and Secondary Education Act of 1965; or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>under part A of title VII of that Act; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>any State or local funds expended for programs that would qualify for assistance under any of those parts.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <heading><inline class="smallCaps">Free appropriate public education</inline>.—</heading><chapeau>The term ‘free appropriate public education’ means special education and related services that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>have been provided at public expense, under public supervision and direction, and without charge;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>meet the standards of the State educational agency;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>include an appropriate preschool, elementary, or secondary school education in the State involved; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>are provided in conformity with the individualized education program required under section 614(d).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="9">“(9)</num> <heading><inline class="smallCaps">Indian</inline>.—</heading><content>The term ‘Indian’ means an individual who is a member of an Indian tribe.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">“(10)</num> <heading><inline class="smallCaps">Indian tribe</inline>.—</heading><content>The term ‘Indian tribe’ means any Federal or State Indian tribe, band, rancheria, pueblo, colony, or community, including any Alaska Native village or regional village corporation (as defined in or established under the Alaska Native Claims Settlement Act).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="11">“(11)</num> <heading><inline class="smallCaps">Individualized education program</inline>.—</heading><content>The term ‘individualized education program’ or ‘IEP’ means a written statement for each child with a disability that is developed, reviewed, and revised in accordance with section 614(d).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="12">“(12)</num> <heading><inline class="smallCaps">Individualized family service plan</inline>.—</heading><content>The term ‘individualized family service plan’ has the meaning given such term in section 636.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="13">“(13)</num> <heading><inline class="smallCaps">Infant or toddler with a disability</inline>.—</heading><content>The term ‘infant or toddler with a disability’ has the meaning given such term in section 632.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="14">“(14)</num> <heading><inline class="smallCaps">Institution of higher education</inline>.—</heading><chapeau>The term ‘institution of higher education’—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>has the meaning given that term in section 1201(a) of the Higher Education Act of 1965; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>also includes any community college receiving funding from the Secretary of the Interior under the Tribally Controlled Community College Assistance Act of 1978.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="15">“(15)</num> <heading><inline class="smallCaps">Local educational agency</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>The term ‘local educational agency1 means a public board of education or other public authority legally constituted within a State for either administrative control or direction of, or to perform a service function for, public elementary or secondary schools in a city, county, township, school district, or other political subdivision of a State, or for such combination of school districts or counties as are recognized in a State as an administrative agency for its public elementary or secondary schools.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>The term includes—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>an educational service agency, as defined in paragraph (4); and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>any other public institution or agency having administrative control and direction of a public elementary or secondary school.<page identifier="/us/stat/111/45">111 STAT. 45</page></content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>The term includes an elementary or secondary school funded by the Bureau of Indian Affairs, but only to the extent that such inclusion makes the school eligible for programs for which specific eligibility is not provided to the school in another provision of law and the school does not have a student population that is smaller than the student population of the local educational agency receiving assistance under this Act with the smallest student population, except that the school shall not be subject to the jurisdiction of any State educational agency other than the Bureau of Indian Affairs.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="16">“(16)</num> <heading><inline class="smallCaps">Native language</inline>.—</heading><content>The term ‘native language’, when used with reference to an individual of limited English proficiency, means the language normally used by the individual, or in the case of a child, the language normally used by the parents of the child.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="17">“(17)</num> <heading><inline class="smallCaps">Nonprofit</inline>.—</heading><content>The term ‘nonprofit’, as applied to a school, agency, organization, or institution, means a school, agency, organization, or institution owned and operated by one or more nonprofit corporations or associations no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder or individual.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="18">“(18)</num> <heading><inline class="smallCaps">Outlying area</inline>.—</heading><content>The term ‘outlying area’ means the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="19">“(19)</num> <heading><inline class="smallCaps">Parent</inline>.—</heading><chapeau>The term ‘parent’—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>includes a legal guardian; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>except as used in sections 615(b)(2) and 639(a)(5), includes an individual assigned under either of those sections to be a surrogate parent.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="20">“(20)</num> <heading><inline class="smallCaps">Parent organization</inline>.—</heading><content>The term ‘parent organization’ has the meaning given that term in section 682(g).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="21">“(21)</num> <heading><inline class="smallCaps">Parent training and information center</inline>.—</heading><content>The term ‘parent training and information center’ means a center assisted under section 682 or 683.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="22">“(22)</num> <heading><inline class="smallCaps">Related services</inline>.—</heading><content>The term ‘related services’ means transportation, and such developmental, corrective, and other supportive services (including speech-language pathology and audiology services, psychological services, physical and occupational therapy, recreation, including therapeutic recreation, social work services, counseling services, including rehabilitation counseling, orientation and mobility services, and medical services, except that such medical services shall be for diagnostic and evaluation purposes only) as may be required to assist a child with a disability to benefit from special education, and includes the early identification and assessment of disabling conditions in children.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="23">“(23)</num> <heading><inline class="smallCaps">Secondary school</inline>.—</heading><content>The term ‘secondary school’ means a nonprofit institutional day or residential school that provides secondary education, as determined under State law, except that it does not include any education beyond grade 12.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="24">“(24)</num> <heading><inline class="smallCaps">Secretary</inline>.—</heading><content>The term ‘Secretary’ means the Secretary of Education.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="25">“(25)</num> <heading><inline class="smallCaps">Special education</inline>.—</heading><chapeau>The term ‘special education’ means specially designed instruction, at no cost to parents, to meet the unique needs of a child with a disability, including—<page identifier="/us/stat/111/46">111 STAT. 46</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>instruction conducted in the classroom, in the home, in hospitals and institutions, and in other settings; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>instruction in physical education.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="26">“(26)</num> <heading><inline class="smallCaps">Specific learning disability</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The term ‘specific learning disability’ means a disorder in one or more of the basic psychological processes involved in understanding or in using language, spoken or written, which disorder may manifest itself in imperfect ability to listen, think, speak, read, write, spell, or do mathematical calculations.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Disorders included</inline>.—</heading><content>Such term includes such conditions as perceptual disabilities, brain injury, minimal brain dysfunction, dyslexia, and developmental aphasia.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Disorders not included</inline>.—</heading><content>Such term does not include a learning problem that is primarily the result of visual, hearing, or motor disabilities, of mental retardation, of emotional disturbance, or of environmental, cultural, or economic disadvantage.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="27">“(27)</num> <heading><inline class="smallCaps">State</inline>.—</heading><content>The term ‘State’ means each of the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, and each of the outlying areas.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="28">“(28)</num> <heading><inline class="smallCaps">State educational agency</inline>.—</heading><content>The term ‘State educational agency’ means the State board of education or other agency or officer primarily responsible for the State supervision of public elementary and secondary schools, or, if there is no such officer or agency, an officer or agency designated by the Governor or by State law.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="29">“(29)</num> <heading><inline class="smallCaps">Supplementary aids and services</inline>.—</heading><content>The term ‘supplementary aids and services’ means, aids, services, and other supports that are provided in regular education classes or other education-related settings to enable children with disabilities to be educated with nondisabled children to the maximum extent appropriate in accordance with section 612(a)(5).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="30">“(30)</num> <heading><inline class="smallCaps">Transition services</inline>.—</heading><chapeau>The term ‘transition services’ means a coordinated set of activities for a student with a disability that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>is designed within an outcome-oriented process, which promotes movement from school to post-school activities, including post-secondary education, vocational training, integrated employment (including supported employment), continuing and adult education, adult services, independent living, or community participation;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>is based upon the individual student’s needs, taking into account the student’s preferences and interests; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>includes instruction, related services, community experiences, the development of employment and other post-school adult living objectives, and, when appropriate, acquisition of daily living skills and functional vocational evaluation.</content></subparagraph> </paragraph> </section> <section> <num value="603">“SEC. 603.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1402">20 USC 1402</ref>.</p></sidenote> <heading>OFFICE OF SPECIAL EDUCATION PROGRAMS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Establishment</inline>.—</heading><content>There shall be, within the Office of Special Education and Rehabilitative Services in the Department of Education, an Office of Special Education Programs, which shall <page identifier="/us/stat/111/47">111 STAT. 47</page>be the principal agency in such Department for administering and carrying out this Act and other programs and activities concerning the education of children with disabilities.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Director</inline>.—</heading><content>The Office established under subsection (a) shall be headed by a Director who shall be selected by the Secretary and shall report directly to the Assistant Secretary for Special Education and Rehabilitative Services.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Voluntary and uncompensated services</inline>.—</heading><content>Notwithstanding section 1342 of title 31, United States Code, the Secretary is authorized to accept voluntary and uncompensated services in furtherance of the purposes of this Act.</content> </subsection> </section> <section> <num value="604">“SEC. 604.</num> <heading>ABROGATION OF STATE SOVEREIGN IMMUNITY.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1403">20 USC 1403</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>A State shall not be immune under the eleventh amendment to the Constitution of the United States from suit in Federal court for a violation of this Act.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Remedies</inline>.—</heading><content>In a suit against a State for a violation of this Act, remedies (including remedies both at law and in equity) are available for such a violation to the same extent as those remedies are available for such a violation in the suit against any public entity other than a State.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>Subsections (a) and (b) apply with respect to violations that occur in whole or part after the date of the enactment of the Education of the Handicapped Act Amendments of 1990.</content> </subsection> </section> <section> <num value="605">“SEC. 605.</num> <heading>ACQUISITION OF EQUIPMENT; CONSTRUCTION OR ALTERATION OF FACILITIES.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1404">20 USC 1404</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>If the Secretary determines that a program authorized under this Act would be improved by permitting program funds to be used to acquire appropriate equipment, or to construct new facilities or alter existing facilities, the Secretary is authorized to allow the use of those funds for those purposes.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Compliance With Certain Regulations</inline>.—</heading><chapeau>Any construction of new facilities or alteration of existing facilities under subsection (a) shall comply with the requirements of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>appendix A of part 36 of title 28, Code of Federal Regulations (commonly known as the ‘Americans with Disabilities Accessibility Guidelines for Buildings and Facilities’); or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>appendix A of part 101–19.6 of title 41, Code of Federal Regulations (commonly known as the ‘Uniform Federal Accessibility Standards’).</content></paragraph> </subsection> </section> <section> <num value="606">“SEC. 606.</num> <heading>EMPLOYMENT OF INDIVIDUALS WITH DISABILITIES.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1405">20 USC 1405</ref>.</p></sidenote> <content>“The Secretary shall ensure that each recipient of assistance under this Act makes positive efforts to employ and advance in employment qualified individuals with disabilities in programs assisted under this Act.</content> </section> <section> <num value="607">“SEC. 607.</num> <heading>REQUIREMENTS FOR PRESCRIBING REGULATIONS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1406">20 USC 1406</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Public Comment Period</inline>.—</heading><content>The Secretary shall provide a public comment period of at least 90 days on any regulation proposed under part B or part C of this Act on which an opportunity for public comment is otherwise required by law.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Protections Provided to Children</inline>.—</heading><content>The Secretary may not implement, or publish in final form, any regulation prescribed pursuant to this Act that would procedurally or substantively lessen the protections provided to children with disabilities under this <page identifier="/us/stat/111/48">111 STAT. 48</page>Act, as embodied in regulations in effect on July 20, 1983 (particularly as such protections relate to parental consent to initial evaluation or initial placement in special education, least restrictive environment, related services, timelines, attendance of evaluation personnel at individualized education program meetings, or qualifications of personnel), except to the extent that such regulation reflects the clear and unequivocal intent of the Congress in legislation.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Policy Letters and Statements</inline>.—</heading><content>The Secretary may not, through policy letters or other statements, establish a rule that is required for compliance with, and eligibility under, this part without following the requirements of section 553 of title 5, United States Code.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Correspondence From Department Of Education Describing Interpretations of This Part</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Federal Register, publication.</p></sidenote> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall, on a quarterly basis, publish in the Federal Register, and widely disseminate to interested entities through various additional forms of communication, a list of correspondence from the Department of Education received by individuals during the previous quarter that describes the interpretations of the Department of Education of this Act or the regulations implemented pursuant to this Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Additional information</inline>.—</heading><content>For each item of correspondence published in a list under paragraph (1), the Secretary shall identify the topic addressed by the correspondence and shall include such other summary information as the Secretary determines to be appropriate.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Issues of National Significance</inline>.—</heading><chapeau>If the Secretary receives a written request regarding a policy, question, or interpretation under part B of this Act, and determines that it raises an issue of general interest or applicability of national significance to the implementation of part B, the Secretary shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>include a statement to that effect in any written response;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>widely disseminate that response to State educational agencies, local educational agencies, parent and advocacy organizations, and other interested organizations, subject to applicable laws relating to confidentiality of information; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>not later than one year after the date on which the Secretary responds to the written request, issue written guidance on such policy, question, or interpretation through such means as the Secretary determines to be appropriate and consistent with law, such as a policy memorandum, notice of interpretation, or notice of proposed rulemaking.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Explanation</inline>.—</heading><chapeau>Any written response by the Secretary under subsection (e) regarding a policy, question, or interpretation under part B of this Act shall include an explanation that the written response—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>is provided as informal guidance and is not legally binding; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>represents the interpretation by the Department of Education of the applicable statutory or regulatory requirements in the context of the specific facts presented.<page identifier="/us/stat/111/49">111 STAT. 49</page></content></paragraph> </subsection> </section> </part> <part> <num value="B">“PART B—</num><heading>ASSISTANCE FOR EDUCATION OF ALL CHILDREN WITH DISABILITIES</heading> <section> <num value="611">“SEC. 611.</num> <heading>AUTHORIZATION; ALLOTMENT; USE OF FUNDS; AUTHORIZATION OF APPROPRIATIONS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1411">20 USC 1411</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Grants to States</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Purpose of grants</inline>.—</heading><content>The Secretary shall make grants to States and the outlying areas, and provide funds to the Secretary of the Interior, to assist them to provide special education and related services to children with disabilities in accordance with this part.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Maximum amounts</inline>.—</heading><chapeau>The maximum amount of the grant a State may receive under this section for any fiscal year is—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>the number of children with disabilities in the State who are receiving special education and related services—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>aged 3 through 5 if the State is eligible for a grant under section 619; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>aged 6 through 21; multiplied by</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>40 percent of the average per-pupil expenditure in public elementary and secondary schools in the United States.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Outlying Areas and Freely Associated States</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Funds reserved</inline>.—</heading><chapeau>From the amount appropriated for any fiscal year under subsection (j), the Secretary shall reserve not more than one percent, which shall be used—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>to provide assistance to the outlying areas in accordance with their respective populations of individuals aged 3 through 21; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>for fiscal years 1998 through 2001, to carry out the competition described in paragraph (2), except that the amount reserved to carry out that competition shall not exceed the amount reserved for fiscal year 1996 for the competition under part B of this Act described under the heading “SPECIAL EDUCATION” in Public Law 104134.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Limitation for freely associated states</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Competitive grants</inline>.—</heading><content>The Secretary shall use funds described in paragraph (1)(B) to award grants, on a competitive basis, to Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and the freely associated States to carry out the purposes of this part.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Award basis</inline>.—</heading><content>The Secretary shall award grants under subparagraph (A) on a competitive basis, pursuant to the recommendations of the Pacific Region Educational Laboratory in Honolulu, Hawaii. Those recommendations shall be made by experts in the field of special education and related services.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Assistance requirements</inline>.—</heading><chapeau>Any freely associated State that wishes to receive funds under this part shall include, in its application for assistance—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>information demonstrating that it will meet all conditions that apply to States under this part;<page identifier="/us/stat/111/50">111 STAT. 50</page></content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>an assurance that, notwithstanding any other provision of this part, it will use those funds only for the direct provision of special education and related services to children with disabilities and to enhance its capacity to make a free appropriate public education available to all children with disabilities;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>the identity of the source and amount of funds, in addition to funds under this part, that it will make available to ensure that a free appropriate public education is available to all children with disabilities within its jurisdiction; and</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>such other information and assurances as the Secretary may require.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Termination of eligibility</inline>.—</heading><content>Notwithstanding any other provision of law, the freely associated States shall not receive any funds under this part for any program year that begins after September 30, 2001.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Administrative costs</inline>.—</heading><content>The Secretary may provide not more than five percent of the amount reserved for grants under this paragraph to pay the administrative costs of the Pacific Region Educational Laboratory under subparagraph (B).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Limitation</inline>.—</heading><content>An outlying area is not eligible for a competitive award under paragraph (2) unless it receives assistance under paragraph (1)(A).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Special rule</inline>.—</heading><content>The provisions of Public Law 95–134, permitting the consolidation of grants by the outlying areas, shall not apply to funds provided to those areas or to the freely associated States under this section.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Eligibility for discretionary programs</inline>.—</heading><content>The freely associated States shall be eligible to receive assistance under subpart 2 of part D of this Act until September 30, 2001.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Definition</inline>.—</heading><content>As used in this subsection, the term ‘freely associated States’ means the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Secretary of the Interior</inline>.—</heading><content>From the amount appropriated for any fiscal year under subsection (j), the Secretary shall reserve 1.226 percent to provide assistance to the Secretary of the Interior in accordance with subsection (i).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Allocations to States</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>After reserving funds for studies and evaluations under section 674(e), and for payments to the outlying areas and the Secretary of the Interior under subsections (b) and (c), the Secretary shall allocate the remaining amount among the States in accordance with paragraph (2) or subsection (e), as the case may be.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Interim formula</inline>.—</heading><content>Except as provided in subsection (e), the Secretary shall allocate the amount described in paragraph (1) among the States in accordance with section 611(a)(3), (4), and (5) and (b)(1), (2), and (3) of this Act, as in effect prior to the enactment of the Individuals with Disabilities Education Act Amendments of 1997, except that the determination of the number of children with disabilities receiving special education and related services under such section 611(a)(3) may, at the State’s discretion, be calculated as of the last <page identifier="/us/stat/111/51">111 STAT. 51</page>Friday in October or as of December 1 of the fiscal year for which the funds are appropriated.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Permanent Formula</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Establishment of base year</inline>.—</heading><content>The Secretary shall allocate the amount described in subsection (d)(1) among the States in accordance with this subsection for each fiscal year beginning with the first fiscal year for which the amount appropriated under subsection (j) is more than $4,924,672,200.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Use of base year</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Definition</inline>.—</heading><content>As used in this subsection, the term ‘base year’ means the fiscal year preceding the first fiscal year in which this subsection applies.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Special rule for use of base year amount</inline>.—</heading><content>If a State received any funds under this section for the base year on the basis of children aged 3 through 5, but does not make a free appropriate public education available to all children with disabilities aged 3 through 5 in the State in any subsequent fiscal year, the Secretary shall compute the State’s base year amount, solely for the purpose of calculating the State’s allocation in that subsequent year under paragraph (3) or (4), by subtracting the amount allocated to the State for the base year on the basis of those children.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Increase in funds</inline>.—</heading><chapeau>If the amount available for allocations to States under paragraph (1) is equal to or greater than the amount allocated to the States under this paragraph for the preceding fiscal year, those allocations shall be calculated as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num><clause class="inline"><num value="i">(i)</num> <chapeau>Except as provided in subparagraph (B), the Secretary shall—</chapeau> <subclause class="indent3 fontsize10"><num value="I">“(I)</num> <content>allocate to each State the amount it received for the base year;</content></subclause> <subclause class="indent3 fontsize10"><num value="II">“(II)</num> <content>allocate 85 percent of any remaining funds to States on the basis of their relative populations of children aged 3 through 21 who are of the same age as children with disabilities for whom the State ensures the availability of a free appropriate public education under this part; and</content></subclause> <subclause class="indent3 fontsize10"><num value="III">“(III)</num> <content>allocate 15 percent of those remaining funds to States on the basis of their relative populations of children described in subclause (II) who are living in poverty.</content></subclause> </clause> <clause class="indent0 fontsize10"><num value="ii">“(ii)</num> <content>For the purpose of making grants under this paragraph, the Secretary shall use the most recent population data, including data on children living in poverty, that are available and satisfactory to the Secretary.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>Notwithstanding subparagraph (A), allocations under this paragraph shall be subject to the following:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>No State’s allocation shall be less than its allocation for the preceding fiscal year.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>No State’s allocation shall be less than the greatest of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <chapeau>the sum of—</chapeau> <item class="indent5 fontsize10"><num value="aa">“(aa)</num> <content>the amount it received for the base year; and</content></item> <item class="indent5 fontsize10"><num value="bb">“(bb)</num> <content>one third of one percent of the amount by which the amount appropriated <page identifier="/us/stat/111/52">111 STAT. 52</page>under subsection (j) exceeds the amount appropriated under this section for the base year;</content></item> </subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <chapeau>the sum of—</chapeau> <item class="indent5 fontsize10"><num value="aa">“(aa)</num> <content>the amount it received for the preceding fiscal year; and</content></item> <item class="indent5 fontsize10"><num value="bb">“(bb)</num> <content>that amount multiplied by the percentage by which the increase in the funds appropriated from the preceding fiscal year exceeds 1.5 percent; or</content></item> </subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <chapeau>the sum of—</chapeau> <item class="indent5 fontsize10"><num value="aa">“(aa)</num> <content>the amount it received for the preceding fiscal year; and</content></item> <item class="indent5 fontsize10"><num value="bb">“(bb)</num> <content>that amount multiplied by 90 percent of the percentage increase in the amount appropriated from the preceding fiscal year,</content></item> </subclause> </clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <chapeau>Notwithstanding clause (ii), no State’s allocation under this paragraph shall exceed the sum of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the amount it received for the preceding fiscal year; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>that amount multiplied by the sum of 1.5 percent and the percentage increase in the amount appropriated.</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>If the amount available for allocations under this paragraph is insufficient to pay those allocations in full, those allocations shall be ratably reduced, subject to subparagraph (B)(i).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Decrease in funds</inline>.—</heading><chapeau>If the amount available for allocations to States under paragraph (1) is less than the amount allocated to the States under this section for the preceding fiscal year, those allocations shall be calculated as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>If the amount available for allocations’ is greater than the amount allocated to the States for the base year, each State shall be allocated the sum of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the amount it received for the base year; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>an amount that bears the same relation to any remaining funds as the increase the State received for the preceding fiscal year over the base year bears to the total of all such increases for all States.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num><clause class="inline"><num value="i">(i)</num> <content>If the amount available for allocations is equal to or less than the amount allocated to the States for the base year, each State shall be allocated the amount it received for the base year.</content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii)</num> <content>If the amount available is insufficient to make the allocations described in clause (i), those allocations shall be ratably reduced.</content></clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading>State-Level Activities.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">General</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Each State may retain not more than the amount described in subparagraph (B) for administration and other State-level activities in accordance with paragraphs (2) and (3).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>For each fiscal year, the Secretary shall determine and report to the State educational agency an amount that is 25 percent of the amount the State received under this section for fiscal year 1997, cumulatively adjusted by the Secretary for each succeeding fiscal year by the lesser of—<page identifier="/us/stat/111/53">111 STAT. 53</page></chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the percentage increase, if any, from the preceding fiscal year in the State’s allocation under this section; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the rate of inflation, as measured by the percentage increase, if any, from the preceding fiscal year in the Consumer Price Index For All Urban Consumers, published by the Bureau of Labor Statistics of the Department of Labor.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <chapeau>A State may use funds it retains under subparagraph (A) without regard to—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the prohibition on commingling of funds in section 612(a)(18)(B); and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the prohibition on supplanting other funds in section 612(a)(18)(C).</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">State administration</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>For the purpose of administering this part, including section 619 (including the coordination of activities under this part with, and providing technical assistance to, other programs that provide services to children with disabilities)—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>each State may use not more than twenty percent of the maximum amount it may retain under paragraph (1)(A) for any fiscal year or $500,000 (adjusted by the cumulative rate of inflation since fiscal year 1998, as measured by the percentage increase, if any, in the Consumer Price Index For All Urban Consumers, published by the Bureau of Labor Statistics of the Department of Labor), whichever is greater; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>each outlying area may use up to five percent of the amount it receives under this section for any fiscal year or $35,000, whichever is greater.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Funds described in subparagraph (A) may also be used for the administration of part C of this Act, if the State educational agency is the lead agency for the State under that part.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Other state-level activities</inline>.—</heading><chapeau>Each State shall use any funds it retains under paragraph (1) and does not use for administration under paragraph (2) for any of the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Support and direct services, including technical assistance and personnel development and training.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Administrative costs of monitoring and complaint investigation, but only to the extent that those costs exceed the costs incurred for those activities during fiscal year 1985.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>To establish and implement the mediation process required by section 615(e), including providing for the costs of mediators and support personnel.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>To assist local educational agencies in meeting personnel shortages.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>To develop a State Improvement Plan under subpart 1 of part D.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>Activities at the State and local levels to meet the performance goals established by the State under section 612(a)(16) and to support implementation of the State Improvement Plan under subpart 1 of part D if the State receives funds under that subpart.<page identifier="/us/stat/111/54">111 STAT. 54</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <content>To supplement other amounts used to develop and implement a Statewide coordinated services system designed to improve results for children and families, including children with disabilities and their families, but not to exceed one percent of the amount received by the State under this section. This system shall be coordinated with and, to the extent appropriate, build on the system of coordinated services developed by the State under part C of this Act.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num> <content>For subgrants to local educational agencies for the purposes described in paragraph (4)(A).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num><subparagraph class="inline"><num value="A">(A)</num> <heading><inline class="smallCaps">Subgrants to local educational agencies for capacity-building and improvement</inline>.—</heading><chapeau>In any fiscal year in which the percentage increase in the State’s allocation under this section exceeds the rate of inflation (as measured by the percentage increase, if any, from the preceding fiscal year in the Consumer Price Index For All Urban Consumers, published by the Bureau of Labor Statistics of the Department of Labor), each State shall reserve, from its allocation under this section, the amount described in subparagraph (B) to make subgrants to local educational agencies, unless that amount is less than $100,000, to assist them in providing direct services and in making systemic change to improve results for children with disabilities through one or more of the following:</chapeau> <clause class="indent2 fontsize10"><num value="i">“(i)</num> <content>Direct services, including alternative programming for children who have been expelled from school, and services for children in correctional facilities, children enrolled in State-operated or State-supported schools, and children in charter schools.</content></clause> <clause class="indent2 fontsize10"><num value="ii">“(ii)</num> <content>Addressing needs or carrying out improvement strategies identified in the State’s Improvement Plan under subpart 1 of part D.</content></clause> <clause class="indent2 fontsize10"><num value="iii">“(iii)</num> <content>Adopting promising practices, materials, and technology, based on knowledge derived from education research and other sources.</content></clause> <clause class="indent2 fontsize10"><num value="iv">“(iv)</num> <content>Establishing, expanding, or implementing interagency agreements and arrangements between local educational agencies and other agencies or organizations concerning the provision of services to children with disabilities and their families.</content></clause> <clause class="indent2 fontsize10"><num value="v">“(v)</num> <content>Increasing cooperative problem-solving between parents and school personnel and promoting the use of alternative dispute resolution.</content></clause> </subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Maximum subgrant</inline>.—</heading><chapeau>For each fiscal year, the amount referred to in subparagraph (A) is—</chapeau> <clause class="indent2 fontsize10"><num value="i">“(i)</num> <content>the maximum amount the State was allowed to retain under paragraph (1)(A) for the prior fiscal year, or for fiscal year 1998, 25 percent of the State’s allocation for fiscal year 1997 under this section; multiplied by</content></clause> <clause class="indent2 fontsize10"><num value="ii">“(ii)</num> <content>the difference between the percentage increase in the State’s allocation under this section and the rate of inflation, as measured by the percentage increase, if any, from the preceding fiscal year in the Consumer Price Index For All Urban Consumers, published by the Bureau of Labor Statistics of the Department of Labor.<page identifier="/us/stat/111/55">111 STAT. 55</page></content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Report on use of funds</inline>.—</heading><chapeau>As part of the information required to be submitted to the Secretary under section 612, each State shall annually describe—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>how amounts retained under paragraph (1) will be used to meet the requirements of this part;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>how those amounts will be allocated among the activities described in paragraphs (2) and (3) to meet State priorities based on input from local educational agencies; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>the percentage of those amounts, if any, that will be distributed to local educational agencies by formula.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Subgrants to Local Educational Agencies</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Subgrants required</inline>.—</heading><content>Each State that receives a grant under this section for any fiscal year shall distribute any funds it does not retain under subsection (f) (at least 75 percent of the grant funds) to local educational agencies in the State that have established their eligibility under section 613, and to State agencies that received funds under section 614A(a) of this Act for fiscal year 1997, as then in effect, and have established their eligibility under section 613, for use in accordance with this part.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Allocations to local educational agencies</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Interim procedure</inline>.—</heading><content>For each fiscal year for which funds are allocated to States under subsection (d)(2), each State shall allocate funds under paragraph (1) in accordance with section 611(d) of this Act, as in effect prior to the enactment of the Individuals with Disabilities Education Act Amendments of 1997.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Permanent procedure</inline>.—</heading><chapeau>For each fiscal year for which funds are allocated to States under subsection (e), each State shall allocate funds under paragraph (1) as follows:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Base payments</inline>.—</heading><content>The State shall first award each agency described in paragraph (1) the amount that agency would have received under this section for the base year, as defined in subsection (e)(2)(A), if the State had distributed 75 percent of its grant for that year under section 611(a), as then in effect.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Allocation of remaining funds</inline>.—</heading><chapeau>After making allocations under clause (i), the State shall—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>allocate 85 percent of any remaining funds to those agencies on the basis of the relative numbers of children enrolled in public and private elementary and secondary schools within the agency’s jurisdiction; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>allocate 15 percent of those remaining funds to those agencies in accordance with their relative numbers of children living in poverty, as determined by the State educational agency.</content></subclause> </clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Former chapter i state agencies</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>To the extent necessary, the State—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <chapeau>shall use funds that are available under subsection (f)(1)(A) to ensure that each State agency that received fiscal year 1994 funds under subpart 2 of part D of chapter 1 of title I of the Elementary and Secondary Education Act of 1965 receives, from the combination of funds under subsection (f)(1)(A) and <page identifier="/us/stat/111/56">111 STAT. 56</page>funds provided under paragraph (1) of this subsection, an amount equal to—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the number of children with disabilities, aged 6 through 21, to whom the agency was providing special education and related services on December 1 of the fiscal year for which the funds were appropriated, subject to the limitation in subparagraph (B); multiplied by</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the per-child amount provided under such subpart for fiscal year 1994; and</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>may use those funds to ensure that each local educational agency that received fiscal year 1994 funds under that subpart for children who had transferred from a State-operated or State-supported school or program assisted under that subpart receives, from the combination of funds available under subsection (f)(1)(A) and funds provided under paragraph (1) of this subsection, an amount for each such child, aged 3 through 21 to whom the agency was providing special education and related services on December 1 of the fiscal year for which the funds were appropriated, equal to the per-child amount the agency received under that subpart for fiscal year 1994.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>The number of children counted under subparagraph (A)(i)(I) shall not exceed the number of children aged 3 through 21 for whom the agency received fiscal year 1994 funds under subpart 2 of part D of chapter 1 of title I of the Elementary and Secondary Education Act of 1965.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Reallocation of funds</inline>.—</heading><content>If a State educational agency determines that a local educational agency is adequately providing a free appropriate public education to all children with disabilities residing in the area served by that agency with State and local funds, the State educational agency may reallocate any portion of the funds under this part that are not needed by that local agency to provide a free appropriate public education to other local educational agencies in the State that are not adequately providing special education and related services to all children with disabilities residing in the areas they serve.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For the purpose of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <chapeau>the term ‘average per-pupil expenditure in public elementary and secondary schools in the United States’ means—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>without regard to the source of funds—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the aggregate current expenditures, during the second fiscal year preceding the fiscal year for which the determination is made (or, if satisfactory data for that year are not available, during the most recent preceding fiscal year for which satisfactory data are available) of all local educational agencies in the 50 States and the District of Columbia); plus</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>any direct expenditures by the State for the operation of those agencies; divided by</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the aggregate number of children in average daily attendance to whom those agencies provided free public education during that preceding year; and<page identifier="/us/stat/111/57">111 STAT. 57</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the term ‘State’ means each of the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="i">“(i)</num> <heading><inline class="smallCaps">Use of Amounts by Secretary of the Interior</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Provision of amounts for assistance</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary of Education shall provide amounts to the Secretary of the Interior to meet the need for assistance for the education of children with disabilities on reservations aged 5 to 21, inclusive, enrolled in elementary and secondary schools for Indian children operated or funded by the Secretary of the Interior. The amount of such payment for any fiscal year shall be equal to 80 percent of the amount allotted under subsection (c) for that fiscal year.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Calculation of number of children</inline>.—</heading><content>In the case of Indian students aged 3 to 5, inclusive, who are enrolled in programs affiliated with the Bureau of Indian Affairs (hereafter in this subsection referred to as ‘BIA’) schools and that are required by the States in which such schools are located to attain or maintain State accreditation, and which schools have such accreditation prior to the date of enactment of the Individuals with Disabilities Education Act Amendments of 1991, the school shall be allowed to count those children for the purpose of distribution of the funds provided under this paragraph to the Secretary of the Interior. The Secretary of the Interior shall be responsible for meeting all of the requirements of this part for these children, in accordance with paragraph (2).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Additional requirement</inline>.—</heading><content>With respect to all other children aged 3 to 21, inclusive, on reservations, the State educational agency shall be responsible for ensuring that all of the requirements of this part are implemented.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Submission of information</inline>.—</heading><chapeau>The Secretary of Education may provide the Secretary of the Interior amounts under paragraph (1) for a fiscal year only if the Secretary of the Interior submits to the Secretary of Education information that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>demonstrates that the Department of the Interior meets the appropriate requirements, as determined by the Secretary of Education, of sections 612 (including monitoring and evaluation activities) and 613;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>includes a description of how the Secretary of the Interior will coordinate the provision of services under this part with local educational agencies, tribes and tribal organizations, and other private and Federal service providers;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>includes an assurance that there are public hearings, adequate notice of such hearings, and an opportunity for comment afforded to members of tribes, tribal governing bodies, and affected local school boards before the adoption of the policies, programs, and procedures described in subparagraph (A);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>includes an assurance that the Secretary of the Interior will provide such information as the Secretary of Education may require to comply with section 618;<page identifier="/us/stat/111/58">111 STAT. 58</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>includes an assurance that the Secretary of the Interior and the Secretary of Health and Human Services have entered into a memorandum of agreement, to be provided to the Secretary of Education, for the coordination of services, resources, and personnel between their respective Federal, State, and local offices and with State and local educational agencies and other entities to facilitate the provision of services to Indian children with disabilities residing on or near reservations (such agreement shall provide for the apportionment of responsibilities and costs including, but not limited to, child find, evaluation, diagnosis, remediation or therapeutic measures, and (where appropriate) equipment and medical or personal supplies as needed for a child to remain in school or a program); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>includes an assurance that the Department of the Interior will cooperate with the Department of Education in its exercise of monitoring and oversight of this application, and any agreements entered into between the Secretary of the Interior and other entities under this part, and will fulfill its duties under this part.</content></subparagraph> <continuation class="indent0 fontsize10">Section 616(a) shall apply to the information described in this paragraph.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Payments for education and services for indian children with disabilities aged 3 through 5</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>With funds appropriated under subsection (j), the Secretary of Education shall make payments to the Secretary of the Interior to be distributed to tribes or tribal organizations (as defined under section 4 of the Indian Self-Determination and Education Assistance Act) or consortia of the above to provide for the coordination of assistance for special education and related services for children with disabilities aged 3 through 5 on reservations served by elementary and secondary schools for Indian children operated or funded by the Department of the Interior. The amount of such payments under subparagraph (B) for any fiscal year shall be equal to 20 percent of the amount allotted under subsection (c).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Distribution of funds</inline>.—</heading><content>The Secretary of the Interior shall distribute the total amount of the payment under subparagraph (A) by allocating to each tribe or tribal organization an amount based on the number of children with disabilities ages 3 through 5 residing on reservations as reported annually, divided by the total of those children served by all tribes or tribal organizations.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Submission of information</inline>.—</heading><content>To receive a payment under this paragraph, the tribe or tribal organization shall submit such figures to the Secretary of the Interior as required to determine the amounts to be allocated under subparagraph (B). This information shall be compiled and submitted to the Secretary of Education.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Use of funds</inline>.—</heading><content>The funds received by a tribe or tribal organization shall be used to assist in child find, screening, and other procedures for the early identification of children aged 3 through 5, parent training, and the provision of direct services. These activities may be carried out directly or through contracts or cooperative agreements <page identifier="/us/stat/111/59">111 STAT. 59</page>with the BIA, local educational agencies, and other public or private nonprofit organizations. The tribe or tribal organization is encouraged to involve Indian parents in the development and implementation of these activities. The above entities shall, as appropriate, make referrals to local, State, or Federal entities for the provision of services or further diagnosis.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Biennial report</inline>.—</heading><content>To be eligible to receive a grant pursuant to subparagraph (A), the tribe or tribal organization shall provide to the Secretary of the Interior a biennial report of activities undertaken under this paragraph, including the number of contracts and cooperative agreements entered into, the number of children contacted and receiving services for each year, and the estimated number of children needing services during the 2 years following the one in which the report is made. The Secretary of the Interior shall include a summary of this information on a biennial basis in the report to the Secretary of Education required under this subsection. The Secretary of Education may require any additional information from the Secretary of the Interior.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <heading><inline class="smallCaps">Prohibitions</inline>.—</heading><content>None of the funds allocated under this paragraph may be used by the Secretary of the Interior for administrative purposes, including child count and the provision of technical assistance.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Plan for coordination of services</inline>.—</heading><content>The Secretary of the Interior shall develop and implement a plan for the coordination of services for all Indian children with disabilities residing on reservations covered under this Act. Such plan shall provide for the coordination of services benefiting these children from whatever source, including tribes, the Indian Health Service, other BIA divisions, and other Federal agencies. In developing the plan, the Secretary of the Interior shall consult with all interested and involved parties. It shall be based on the needs of the children and the system best suited for meeting those needs, and may involve the establishment of cooperative agreements between the BIA, other Federal agencies, and other entities. The plan shall also be distributed upon request to States, State and local educational agencies, and other agencies providing services to infants, toddlers, and children with disabilities, to tribes, and to other interested parties.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Establishment of advisory board</inline>.—</heading><chapeau>To meet the requirements of section 612(a)(21), the Secretary of the Interior shall establish, not later than 6 months after the date of the enactment of the Individuals with Disabilities Education Act Amendments of 1997, under the BIA, an advisory board composed of individuals involved in or concerned with the education and provision of services to Indian infants, toddlers, children, and youth with disabilities, including Indians with disabilities, Indian parents or guardians of such children, teachers, service providers, State and local educational officials, representatives of tribes or tribal organizations, representatives from State Interagency Coordinating Councils under section 641 in States having reservations, and other members representing the various divisions and entities of the BIA. The chairperson shall <page identifier="/us/stat/111/60">111 STAT. 60</page>be selected by the Secretary of the Interior. The advisory board shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>assist in the coordination of services within the BIA and with other local, State, and Federal agencies in the provision of education for infants, toddlers, and children with disabilities;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>advise and assist the Secretary of the Interior in the performance of the Secretary’s responsibilities described in this subsection;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>develop and recommend policies concerning effective inter- and intra-agency collaboration, including modifications to regulations, and the elimination of barriers to inter- and intra-agency programs and activities;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>provide assistance and disseminate information on best practices, effective program coordination strategies, and recommendations for improved educational programming for Indian infants, toddlers, and children with disabilities; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>provide assistance in the preparation of information required under paragraph (2)(D).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Annual reports</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The advisory board established under paragraph (5) shall prepare and submit to the Secretary of the Interior and to the Congress an annual report containing a description of the activities of the advisory board for the preceding year.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Availability</inline>.—</heading><content>The Secretary of the Interior shall make available to the Secretary of Education the report described in subparagraph (A).</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="j">“(j)</num> <heading><inline class="smallCaps">Authorization of Appropriations</inline>.—</heading><content>For the purpose of carrying out this part, other than section 619, there are authorized to be appropriated such sums as may be necessary.</content> </subsection> </section> <section> <num value="612">“SEC. 612.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1412">20 USC 1412</ref>.</p></sidenote> <heading>STATE ELIGIBILITY.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>A State is eligible for assistance under this part for a fiscal year if the State demonstrates to the satisfaction of the Secretary that the State has in effect policies and procedures to ensure that it meets each of the following conditions:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Free appropriate public education</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>A free appropriate public education is available to all children with disabilities residing in the State between the ages of 3 and 21, inclusive, including children with disabilities who have been suspended or expelled from school.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Limitation</inline>.—</heading><chapeau>The obligation to make a free appropriate public education available to all children with disabilities does not apply with respect to children:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>aged 3 through 5 and 18 through 21 in a State to the extent that its application to those children would be inconsistent with State law or practice, or the order of any court, respecting the provision of public education to children in those age ranges; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>aged 18 through 21 to the extent that State law does not require that special education and related services under this part be provided to children with disabilities who, in the educational placement prior to their incarceration in an adult correctional facility:<page identifier="/us/stat/111/61">111 STAT. 61</page></chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>were not actually identified as being a child with a disability under section 602(3) of this Act; or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>did not have an individualized education program under this part.</content></subclause> </clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Full educational opportunity goal</inline>.—</heading><content>The State has established a goal of providing full educational opportunity to all children with disabilities and a detailed timetable for accomplishing that goal.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Child find</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>All children with disabilities residing in the State, including children with disabilities attending private schools, regardless of the severity of their disabilities, and who are in need of special education and related services, are identified, located, and evaluated and a practical method is developed and implemented to determine which children with disabilities are currently receiving needed special education and related services.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Construction</inline>.—</heading><content>Nothing in this Act requires that children be classified by their disability so long as each child who has a disability listed in section 602 and who, by reason of that disability, needs special education and related services is regarded as a child with a disability under this part.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Individualized education program</inline>.—</heading><content>An individualized education program, or an individualized family service plan that meets the requirements of section 636(d), is developed, reviewed, and revised for each child with a disability in accordance with section 614(d).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Least restrictive environment</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>To the maximum extent appropriate, children with disabilities, including children in public or private institutions or other care facilities, are educated with children who are not disabled, and special classes, separate schooling, or other removal of children with disabilities from the regular educational environment occurs only when the nature or severity of the disability of a child is such that education in regular classes with the use of supplementary aids and services cannot be achieved satisfactorily.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Additional requirement</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If the State uses a funding mechanism by which the State distributes State funds on the basis of the type of setting in which a child is served, the funding mechanism does not result in placements that violate the requirements of subparagraph (A).</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Assurance</inline>.—</heading><content>If the State does not have policies and procedures to ensure compliance with clause (i), the State shall provide the Secretary an assurance that it will revise the funding mechanism as soon as feasible to ensure that such mechanism does not result in such placements.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Procedural safeguards</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Children with disabilities and their parents are afforded the procedural safeguards required by section 615.<page identifier="/us/stat/111/62">111 STAT. 62</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Additional procedural safeguards</inline>.—</heading><content>Procedures to ensure that testing and evaluation materials and procedures utilized for the purposes of evaluation and placement of children with disabilities will be selected and administered so as not to be racially or culturally discriminatory. Such materials or procedures shall be provided and administered in the child’s native language or mode of communication, unless it clearly is not feasible to do so, and no single procedure shall be the sole criterion for determining an appropriate educational program for a child.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Evaluation</inline>.—</heading><content>Children with disabilities are evaluated in accordance with subsections (a) through (c) of section 614.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <heading><inline class="smallCaps">Confidentiality</inline>.—</heading><content>Agencies in the State comply with section 617(c) (relating to the confidentiality of records and information).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">“(9)</num> <heading><inline class="smallCaps">Transition from part c to preschool programs</inline>.—</heading><content>Children participating in early-intervention programs assisted under part C, and who will participate in preschool programs assisted under this part, experience a smooth and effective transition to those preschool programs in a manner consistent with section 637(a)(8). By the third birthday of such a child, an individualized education program or, if consistent with sections 614(d)(2)(B) and 636(d), an individualized family service plan, has been developed and is being implemented for the child. The local educational agency will participate in transition planning conferences arranged by the designated lead agency under section 637(a)(8).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">“(10)</num> <heading><inline class="smallCaps">Children in private schools</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Children enrolled in private schools by their parents</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>To the extent consistent with the number and location of children with disabilities in the State who are enrolled by their parents in private elementary and secondary schools, provision is made for the participation of those children in the program assisted or carried out under this part by providing for such children special education and related services in accordance with the following requirements, unless the Secretary has arranged for services to those children under subsection (f):</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>Amounts expended for the provision of those services by a local educational agency shall be equal to a proportionate amount of Federal funds made available under this part.</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>Such services may be provided to children with disabilities on the premises of private, including parochial, schools, to the extent consistent with law.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Child-find requirement</inline>.—</heading><content>The requirements of paragraph (3) of this subsection (relating to child find) shall apply with respect to children with disabilities in the State who are enrolled in private, including parochial, elementary and secondary schools.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Children placed in, or referred to, private schools by public agencies</inline>.—<page identifier="/us/stat/111/63">111 STAT. 63</page></heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Children with disabilities in private schools and facilities are provided special education and related services, in accordance with an individualized education program, at no cost to their parents, if such children are placed in, or referred to, such schools or facilities by the State or appropriate local educational agency as the means of carrying out the requirements of this part or any other applicable law requiring the provision of special education and related services to all children with disabilities within such State.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Standards</inline>.—</heading><content>In all cases described in clause (i), the State educational agency shall determine whether such schools and facilities meet standards that apply to State and local educational agencies and that children so served have all the rights they would have if served by such agencies.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Payment for education of children enrolled in private schools without consent of or referral by the public agency</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subject to subparagraph (A), this part does not require a local educational agency to pay for the cost of education, including special education and related services, of a child with a disability at a private school or facility if that agency made a free appropriate public education available to the child and the parents elected to place the child in such private school or facility.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Reimbursement for private school placement</inline>.—</heading><content>If the parents of a child with a disability, who previously received special education and related services under the authority of a public agency, enroll the child in a private elementary or secondary school without the consent of or referral by the public agency, a court or a hearing officer may require the agency to reimburse the parents for the cost of that enrollment if the court or hearing officer finds that the agency had not made a free appropriate public education available to the child in a timely manner prior to that enrollment.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Limitation on reimbursement</inline>.—</heading><chapeau>The cost of reimbursement described in clause (ii) may be reduced or denied—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <chapeau>if—</chapeau> <item class="indent5 fontsize10"><num value="aa">“(aa)</num> <content>at the most recent IEP meeting that the parents attended prior to removal of the child from the public school, the parents did not inform the IEP Team that they were rejecting the placement proposed by the public agency to provide a free appropriate public education to their child, including stating their concerns and their intent to enroll their child in a private school at public expense; or</content></item> <item class="indent5 fontsize10"><num value="bb">“(bb)</num> <content>10 business days (including any holidays that occur on a business day) prior to the removal of the child from the public school, the parents did not give written notice to the <page identifier="/us/stat/111/64">111 STAT. 64</page>public agency of the information described in division (aa);</content></item> </subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>if, prior to the parents’ removal of the child from the public school, the public agency informed the parents, through the notice requirements described in section 615(b)(7), of its intent to evaluate the child (including a statement of the purpose of the evaluation that was appropriate and reasonable), but the parents did not make the child available for such evaluation; or</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>upon a judicial finding of unreasonableness with respect to actions taken by the parents.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <heading><inline class="smallCaps">Exception</inline>.—</heading><chapeau>Notwithstanding the notice requirement in clause (iii)(I), the cost of reimbursement may not be reduced or denied for failure to provide such notice if—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the parent is illiterate and cannot write in English;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>compliance with clause (iii)(I) would likely result in physical or serious emotional harm to the child;</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>the school prevented the parent from providing such notice; or</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>the parents had not received notice, pursuant to section 615, of the notice requirement in clause (iii)(I).</content></subclause> </clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="11">“(11)</num> <heading><inline class="smallCaps">State educational agency responsible for general supervision</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The State educational agency is responsible for ensuring that—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the requirements of this part are met; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>all educational programs for children with disabilities in the State, including all such programs administered by any other State or local agency—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>are under the general supervision of individuals in the State who are responsible for educational programs for children with disabilities; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>meet the educational standards of the State educational agency.</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Limitation</inline>.—</heading><content>Subparagraph (A) shall not limit the responsibility of agencies in the State other than the State educational agency to provide, or pay for some or all of the costs of, a free appropriate public education for any child with a disability in the State.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Exception</inline>.—</heading><content>Notwithstanding subparagraphs (A.) and (B), the Governor (or another individual pursuant to State law), consistent with State law, may assign to any public agency in the State the responsibility of ensuring that the requirements of this part are met with respect to children with disabilities who are convicted as adults under State law and incarcerated in adult prisons.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="12">“(12)</num> <heading><inline class="smallCaps">Obligations related to and methods of ensuring services</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Establishing responsibility for services</inline>.—</heading><chapeau>The Chief Executive Officer or designee of the officer shall <page identifier="/us/stat/111/65">111 STAT. 65</page>ensure that an interagency agreement or other mechanism for interagency coordination is in effect between each public agency described in subparagraph (B) and the State educational agency, in order to ensure that all services described in subparagraph (B)(i) that are needed to ensure a free appropriate public education are provided, including the provision of such services during the pendency of any dispute under clause (iii). Such agreement or mechanism shall include the following:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Agency financial responsibility</inline>.—</heading><content>An identification of, or a method for defining, the financial responsibility of each agency for providing services described in subparagraph (B)(i) to ensure a free appropriate public education to children with disabilities, provided that the financial responsibility of each public agency described in subparagraph (B), including the State Medicaid agency and other public insurers of children with disabilities, shall precede the financial responsibility of the local educational agency (or the State agency responsible for developing the child’s IEP).</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Conditions and terms of reimbursement</inline>.—</heading><content>The conditions, terms, and procedures under which a local educational agency shall be reimbursed by other agencies.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Interagency disputes</inline>.—</heading><content>Procedures for resolving interagency disputes (including procedures under which local educational agencies may initiate proceedings) under the agreement or other mechanism to secure reimbursement from other agencies or otherwise implement the provisions of the agreement or mechanism.</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <heading><inline class="smallCaps">Coordination of services procedures</inline>.—</heading><content>Policies and procedures for agencies to determine and identify the interagency coordination responsibilities of each agency to promote the coordination and timely and appropriate delivery of services described in subparagraph (B)(i).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Obligation of public agency</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If any public agency other than an educational agency is otherwise obligated under Federal or State law, or assigned responsibility under State policy or pursuant to subparagraph (A), to provide or pay for any services that are also considered special education or related services (such as, but not limited to, services described in sections 602(1) relating to assistive technology devices, 602(2) relating to assistive technology services, 602(22) relating to related services, 602(29) relating to supplementary aids and services, and 602(30) relating to transition services) that are necessary for ensuring a free appropriate public education to children with disabilities within the State, such public agency shall fulfill that obligation or responsibility, either directly or through contract or other arrangement.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Reimbursement for services by public agency</inline>.—</heading><content>If a public agency other than an educational <page identifier="/us/stat/111/66">111 STAT. 66</page>agency fails to provide or pay for the special education and related services described in clause (i), the local educational agency (or State agency responsible for developing the child’s IEP) shall provide or pay for such services to the child. Such local educational agency or State agency may then claim reimbursement for the services from the public agency that failed to provide or pay for such services and such public agency shall reimburse the local educational agency or State agency pursuant to the terms of the interagency agreement or other mechanism described in subparagraph (A)(i) according to the procedures established in such agreement pursuant to subparagraph (A)(ii).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Special rule</inline>.—</heading><chapeau>The requirements of subparagraph (A) may be met through—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>state statute or regulation;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>signed agreements between respective agency officials that clearly identify the responsibilities of each agency relating to the provision of services; or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>other appropriate written methods as determined by the Chief Executive Officer of the State or designee of the officer.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="13">“(13)</num> <heading><inline class="smallCaps">Procedural requirements relating to local educational agency eligibility</inline>.—</heading><content>The State educational agency will not make a final determination that a local educational agency is not eligible for assistance under this part without first affording that agency reasonable notice and an opportunity for a hearing.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="14">“(14)</num> <heading><inline class="smallCaps">Comprehensive system of personnel development</inline>.—</heading><content>The State has in effect, consistent with the purposes of this Act and with section 635(a)(8), a comprehensive system of personnel development that is designed to ensure an adequate supply of qualified special education, regular education, and related services personnel that meets the requirements for a State improvement plan relating to personnel development in subsections (b)(2)(B) and (c)(3)(D) of section 653.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="15">“(15)</num> <heading><inline class="smallCaps">Personnel standards</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The State educational agency has established and maintains standards to ensure that personnel necessary to carry out this part are appropriately and adequately prepared and trained.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Standards described</inline>.—</heading><chapeau>Such standards shall—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>be consistent with any State-approved or State-recognized certification, licensing, registration, or other comparable requirements that apply to the professional discipline in which those personnel are providing special education or related services;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>to the extent the standards described in subparagraph (A) are not based on the highest requirements in the State applicable to a specific profession or discipline, the State is taking steps to require retraining or hiring of personnel that meet appropriate professional requirements in the State; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>allow paraprofessionals and assistants who are appropriately trained and supervised, in accordance with State law, regulations, or written policy, <page identifier="/us/stat/111/67">111 STAT. 67</page>in meeting the requirements of this part to be used to assist in the provision of special education and related services to children with disabilities under this part.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Policy</inline>.—</heading><content>In implementing this paragraph, a State may adopt a policy that includes a requirement that local educational agencies in the State make an ongoing goodfaith effort to recruit and hire appropriately and adequately trained personnel to provide special education and related services to children with disabilities, including, in a geographic area of the State where there is a shortage of such personnel, the most qualified individuals available who are making satisfactory progress toward completing applicable course work necessary to meet the standards described in subparagraph (B)(i), consistent with State law, and the steps described in subparagraph (B)(ii) within three years.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="16">“(16)</num> <heading><inline class="smallCaps">Performance goals and indicators</inline>.—</heading><chapeau>The State—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>has established goals for the performance of children with disabilities in the State that—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>will promote the purposes of this Act, as stated in section 601(d); and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>are consistent, to the maximum extent appropriate, with other goals and standards for children established by the State;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>has established performance indicators the State will use to assess progress toward achieving those goals that, at a minimum, address the performance of children with disabilities on assessments, drop-out rates, and graduation rates;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>will, every two years, report to the Secretary and<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> the public on the progress of the State, and of children with disabilities in the State, toward meeting the goals established under subparagraph (A); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>based on its assessment of that progress, will revise its State improvement plan under subpart 1 of part D as may be needed to improve its performance, if the State receives assistance under that subpart.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="17">“(17)</num> <heading><inline class="smallCaps">Participation in assessments</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Children with disabilities are included in general State and district-wide assessment programs, with appropriate accommodations, where necessary. As appropriate, the State or local educational agency—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>develops guidelines for the participation of children with disabilities in alternate assessments for those children who cannot participate in State and district-wide assessment programs; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>develops and, beginning not later than July 1, 2000, conducts those alternate assessments.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Reports</inline>.—</heading><chapeau>The State educational agency makes available to the public, and reports to the public with the same frequency and in the same detail as it reports on the assessment of nondisabled children, the following:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>The number of children with disabilities participating in regular assessments.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>The number of those children participating in alternate assessments.<page identifier="/us/stat/111/68">111 STAT. 68</page></content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num><subclause class="inline"><num value="I">(I)</num> <content>The performance of those children on regular assessments (beginning not later than July 1, 1998) and on alternate assessments (not later than July 1, 2000), if doing so would be statistically sound and would not result in the disclosure of performance results identifiable to individual children.</content></subclause> <subclause class="indent0 fontsize10"><num value="II">“(II)</num> <chapeau>Data relating to the performance of children described under subclause (I) shall be disaggregated—</chapeau> <item class="indent4 fontsize10"><num value="aa">“(aa)</num> <content>for assessments conducted after July 1, 1998; and</content></item> <item class="indent4 fontsize10"><num value="bb">“(bb)</num> <content>for assessments conducted before July 1, 1998, if the State is required to disaggregate such data prior to July 1, 1998.</content></item> </subclause> </clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="18">“(18)</num> <heading><inline class="smallCaps">Supplementation of state, local, and other federal funds</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Expenditures</inline>.—</heading><content>Funds paid to a State under this part will be expended in accordance with all the provisions of this part.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Prohibition against commingling</inline>.—</heading><content>Funds paid to a State under this part will not be commingled with State funds.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Prohibition against supplantation and conditions for waiver by secretary</inline>.—</heading><content>Except as provided in section 613, funds paid to a State under this part will be used to supplement the level of Federal, State, and local funds (including funds that are not under the direct control of State or local educational agencies) expended for special education and related services provided to children with disabilities under this part and in no case to supplant such Federal, State, and local funds, except that, where the State provides clear and convincing evidence that all children with disabilities have available to them a free appropriate public education, the Secretary may waive, in whole or in part, the requirements of this subparagraph if the Secretary concurs with the evidence provided by the State.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="19">“(19)</num> <heading><inline class="smallCaps">Maintenance of state financial support</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The State does not reduce the amount of State financial support for special education and related services for children with disabilities, or otherwise made available because of the excess costs of educating those children, below the amount of that support for the preceding fiscal year.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Reduction of funds for failure to maintain support</inline>.—</heading><content>The Secretary shall reduce the allocation of funds under section 611 for any fiscal year following the fiscal year in which the State fails to comply with the requirement of subparagraph (A) by the same amount by which the State fails to meet the requirement.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Waivers for exceptional or uncontrollable circumstances</inline>.—</heading><chapeau>The Secretary may waive the requirement of subparagraph (A) for a State, for one fiscal year at a time, if the Secretary determines that—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>granting a waiver would be equitable due to exceptional or uncontrollable circumstances such as a natural disaster or a precipitous and unforeseen decline in the financial resources of the State; or<page identifier="/us/stat/111/69">111 STAT. 69</page></content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the State meets the standard in paragraph (18)(C) of this section for a waiver of the requirement to supplement, and not to supplant, funds received under this part.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Subsequent years</inline>.—</heading><content>If, for any year, a State fails to meet the requirement of subparagraph (A), including any year for which the State is granted a waiver under subparagraph (C), the financial support required of the State in future years under subparagraph (A) shall be the amount that would have been required in the absence of that failure and not the reduced level of the State’s support.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Regulations</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>The Secretary shall, by regulation, establish procedures (including objective criteria and consideration of the results of compliance reviews of the State conducted by the Secretary) for determining whether to grant a waiver under subparagraph (C)(ii).</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>The Secretary shall publish proposed regulations under clause (i) not later than 6 months after the date of the enactment of the Individuals with Disabilities Education Act Amendments of 1997, and shall issue final regulations under clause (i) not later than 1 year after such date of enactment.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="20">“(20)</num> <heading><inline class="smallCaps">Public participation</inline>.—</heading><content>Prior to the adoption of any policies and procedures needed to comply with this section (including any amendments to such policies and procedures), the State ensures that there are public hearings, adequate notice of the hearings, and an opportunity for comment available to the general public, including individuals with disabilities and parents of children with disabilities.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="21">“(21)</num> <heading><inline class="smallCaps">State advisory panel</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The State has established and maintains an advisory panel for the purpose of providing policy guidance with respect to special education and related services for children with disabilities in the State.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Membership</inline>.—</heading><chapeau>Such advisory panel shall consist of members appointed by the Governor, or any other official authorized under State law to make such appointments, that is representative of the State population and that is composed of individuals involved in, or concerned with, the education of children with disabilities, including—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>parents of children with disabilities;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>individuals with disabilities;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>teachers;</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>representatives of institutions of higher education that prepare special education and related services personnel;</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>State and local education officials;</content></clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <content>administrators of programs for children with disabilities;</content></clause> <clause class="indent3 fontsize10"><num value="vii">“(vii)</num> <content>representatives of other State agencies involved in the financing or delivery of related services to children with disabilities;</content></clause> <clause class="indent3 fontsize10"><num value="viii">“(viii)</num> <content>representatives of private schools and public charter schools;<page identifier="/us/stat/111/70">111 STAT. 70</page></content></clause> <clause class="indent3 fontsize10"><num value="ix">“(ix)</num> <content>at least one representative of a vocational, community, or business organization concerned with the provision of transition services to children with disabilities; and</content></clause> <clause class="indent3 fontsize10"><num value="x">“(x)</num> <content>representatives from the State juvenile and adult corrections agencies.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Special rule</inline>.—</heading><content>A majority of the members of the panel shall be individuals with disabilities or parents of children with disabilities.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Duties</inline>.—</heading><chapeau>The advisory panel shall—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>advise the State educational agency of unmet needs within the State in the education of children with disabilities;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>comment publicly on any rules or regulations proposed by the State regarding the education of children with disabilities;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>advise the State educational agency in developing evaluations and reporting on data to the Secretary under section 618;</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>advise the State educational agency in developing corrective action plans to address findings identified in Federal monitoring reports under this part; and</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>advise the State educational agency in developing and implementing policies relating to the coordination of services for children with disabilities.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="22">“(22)</num> <heading><inline class="smallCaps">Suspension and expulsion rates</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The State educational agency examines data to determine if significant discrepancies are occurring in the rate of long-term suspensions and expulsions of children with disabilities—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>among local educational agencies in the State; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>compared to such rates for nondisabled children within such agencies.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Review and revision of policies</inline>.—</heading><content>If such discrepancies are occurring, the State educational agency reviews and, if appropriate, revises (or requires the affected State or local educational agency to revise) its policies, procedures, and practices relating to the development and implementation of IEPs, the use of behavioral interventions, and procedural safeguards, to ensure that such policies, procedures, and practices comply with this Act.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">State Educational Agency as Provider of Free Appropriate Public Education or Direct Services</inline>.—</heading><chapeau>If the State educational agency provides free appropriate public education to children with disabilities, or provides direct services to such children, such agency—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>shall comply with any additional requirements of section 613(a), as if such agency were a local educational agency; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>may use amounts that are otherwise available to such agency under this part to serve those children without regard to section 613(a)(2)(A)(i) (relating to excess costs).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Exception for Prior State Plans</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If a State has on file with the Secretary policies and procedures that demonstrate that such State meets <page identifier="/us/stat/111/71">111 STAT. 71</page>any requirement of subsection (a), including any policies and procedures filed under this part as in effect before the effective date of the Individuals with Disabilities Education Act Amendments of 1997, the Secretary shall consider such State to have met such requirement for purposes of receiving a grant under this part.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Modifications made by state</inline>.—</heading><content>Subject to paragraph<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> (3), an application submitted by a State in accordance with this section shall remain in effect until the State submits to the Secretary such modifications as the State deems necessary. This section shall apply to a modification to an application to the same extent and in the same manner as this section applies to the original plan.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Modifications required by the secretary</inline>.—</heading><content>If, after the effective date of the Individuals with Disabilities Education Act Amendments of 1997, the provisions of this Act are amended (or the regulations developed to carry out this Act are amended), or there is a new interpretation of this Act by a Federal court or a State’s highest court, or there is an official finding of noncompliance with Federal law or regulations, the Secretary may require a State to modify its application only to the extent necessary to ensure the State’s compliance with this part.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Approval by the Secretary</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If the Secretary determines that a State is eligible to receive a grant under this part, the Secretary shall notify the State of that determination.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Notice and hearing</inline>.—</heading><chapeau>The Secretary shall not make a final determination that a State is not eligible to receive a grant under this part until after providing the State—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>with reasonable notice; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>with an opportunity for a hearing.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Assistance Under Other Federal Programs</inline>.—</heading><content>Nothing in this title permits a State to reduce medical and other assistance available, or to alter eligibility, under titles V and XIX of the Social Security Act with respect to the provision of a free appropriate public education for children with disabilities in the State.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">By-Pass for Children in Private Schools</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If, on the date of enactment of the Education of the Handicapped Act Amendments of 1983, a State educational agency is prohibited by law from providing for the participation in special programs of children with disabilities enrolled in private elementary and secondary schools as required by subsection (a)(10)(A), the Secretary shall, notwithstanding such provision of law, arrange for the provision of services to such children through arrangements which shall be subject to the requirements of such subsection.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Payments</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Determination of amounts</inline>.—</heading><chapeau>If the Secretary arranges for services pursuant to this subsection, the Secretary, after consultation with the appropriate public and private school officials, shall pay to the provider of such services for a fiscal year an amount per child that does not exceed the amount determined by dividing—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the total amount received by the State under this part for such fiscal year; by<page identifier="/us/stat/111/72">111 STAT. 72</page></content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the number of children with disabilities served in the prior year, as reported to the Secretary by the State under section 618.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Withholding of certain amounts</inline>.—</heading><content>Pending final resolution of any investigation or complaint that could result in a determination under this subsection, the Secretary may withhold from the allocation of the affected State educational agency the amount the Secretary estimates would be necessary to pay the cost of services described in subparagraph (A).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Period of payments</inline>.—</heading><content>The period under which payments are made under subparagraph (A) shall continue until the Secretary determines that there will no longer be any failure or inability on the part of the State educational agency to meet the requirements of subsection (a)(10)(A).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Notice and hearing</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall not take any final action under this subsection until the State educational agency affected by such action has had an opportunity, for at least 45 days after receiving written notice thereof, to submit written objections and to appear before the Secretary or the Secretary’s designee to show cause why such action should not be taken.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Review of action</inline>.—</heading><content>If a State educational agency is dissatisfied with the Secretary’s final action after a proceeding under subparagraph (A), such agency may, not later than 60 days after notice of such action, file with the United States court of appeals for the circuit in which such State is located a petition for review of that action. <sidenote><p class="indent0 firstIndent0 fontsize8">Records.</p></sidenote>A copy of the petition shall be forthwith transmitted by the clerk of the court to the Secretary. The Secretary thereupon shall file in the court the record of the proceedings on which the Secretary based the Secretary’s action, as provided in section 2112 of title 28, United States Code.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Records.</p></sidenote> <heading><inline class="smallCaps">Review of findings of fact</inline>.—</heading><content>The findings of fact by the Secretary, if supported by substantial evidence, shall be conclusive, but the court, for good cause shown, may remand the case to the Secretary to take further evidence, and the Secretary may thereupon make new or modified findings of fact and may modify the Secretary’s previous action, and shall file in the court the record of the further proceedings. Such new or modified findings of fact shall likewise be conclusive if supported by substantial evidence.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Jurisdiction of court of appeals; review by united states supreme court</inline>.—</heading><content>Upon the filing of a petition under subparagraph (B), the United States court of appeals shall have jurisdiction to affirm the action of the Secretary or to set it aside, in whole or in part. The judgment of the court shall be subject to review by the Supreme Court of the United States upon certiorari or certification as provided in section 1254 of title 28, United States Code.<page identifier="/us/stat/111/73">111 STAT. 73</page></content></subparagraph> </paragraph> </subsection> </section> <section> <num value="613">“SEC. 613.</num> <heading>LOCAL EDUCATIONAL AGENCY ELIGIBILITY.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1413">20 USC 1413</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>A local educational agency is eligible for assistance under this part for a fiscal year if such agency demonstrates to the satisfaction of the State educational agency that it meets each of the following conditions:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Consistency with state policies</inline>.—</heading><content>The local educational agency, in providing for the education of children with disabilities within its jurisdiction, has in effect policies, procedures, and programs that are consistent with the State policies and procedures established under section 612.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Use of amounts</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Amounts provided to the local educational agency under this part shall be expended in accordance with the applicable provisions of this part and—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>shall be used only to pay the excess costs of providing special education and related services to children with disabilities;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>shall be used to supplement State, local, and other Federal funds and not to supplant such funds; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>shall not be used, except as provided in subparagraphs (B) and (C), to reduce the level of expenditures for the education of children with disabilities made by the local educational agency from local funds below the level of those expenditures for the preceding fiscal year.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Exception</inline>.—</heading><chapeau>Notwithstanding the restriction in subparagraph (A)(iii), a local educational agency may reduce the level of expenditures where such reduction is attributable to—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the voluntary departure, by retirement or otherwise, or departure for just cause, of special education personnel;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>a decrease in the enrollment of children with disabilities;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <chapeau>the termination of the obligation of the agency, consistent with this part, to provide a program of special education to a particular child with a disability that is an exceptionally costly program, as determined by the State educational agency, because the child—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>has left the jurisdiction of the agency;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>has reached the age at which the obligation of the agency to provide a free appropriate public education to the child has terminated; or</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>no longer needs such program of special education; or</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>the termination of costly expenditures for long-term purchases, such as the acquisition of equipment or the construction of school facilities.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Treatment of federal funds in certain fiscal years</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>Notwithstanding clauses (ii) and (iii) of subparagraph (A), for any fiscal year for which amounts appropriated to carry out section 611 exceeds $4,100,000,000, a local educational agency may treat as local funds, for the purpose of such clauses, up <page identifier="/us/stat/111/74">111 STAT. 74</page>to 20 percent of the amount of funds it receives under this part that exceeds the amount it received under this part for the previous fiscal year.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>Notwithstanding clause (i), if a State educational agency determines that a local educational agency is not meeting the requirements of this part, the State educational agency may prohibit the local educational agency from treating funds received under this part as local funds under clause (i) for any fiscal year, only if it is authorized to do so by the State constitution or a State statute.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Schoolwide programs under title i of the esea</inline>.—</heading><chapeau>Notwithstanding subparagraph (A) or any other provision of this part, a local educational agency may use funds received under this part for any fiscal year to carry out a schoolwide program under section 1114 of the Elementary and Secondary Education Act of 1965, except that the amount so used in any such program shall not exceed—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the number of children with disabilities participating in the schoolwide program; multiplied by</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num><subclause class="inline"><num value="I">(I)</num> <content>the amount received by the local educational agency under this part for that fiscal year; divided by</content></subclause> <subclause class="indent3 fontsize10"><num value="II">“(II)</num> <content>the number of children with disabilities in the jurisdiction of that agency.</content></subclause> </clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Personnel development</inline>.—</heading><chapeau>The local educational agency—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>shall ensure that all personnel necessary to carry out this part are appropriately and adequately prepared, consistent with the requirements of section 653(c)(3)(D); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>to the extent such agency determines appropriate, shall contribute to and use the comprehensive system of personnel development of the State established under section 612(a)(14).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Permissive use of funds</inline>.—</heading><chapeau>Notwithstanding paragraph (2)(A) or section 612(a)(18)(B) (relating to commingled hinds), funds provided to the local educational agency under this part may be used for the following activities:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Services and aids that also benefit nondisabled children</inline>.—</heading><content>For the costs of special education and related services and supplementary aids and services provided in a regular class or other education-related setting to a child with a disability in accordance with the individualized education program of the child, even if one or more nondisabled children benefit from such services.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Integrated and coordinated services system</inline>.—</heading><content>To develop and implement a fully integrated and coordinated services system in accordance with subsection (f).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Treatment of charter schools and their students</inline>.—</heading><chapeau>In carrying out this part with respect to charter schools that are public schools of the local educational agency, the local educational agency—<page identifier="/us/stat/111/75">111 STAT. 75</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>serves children with disabilities attending those schools in the same manner as it serves children with disabilities in its other schools; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>provides funds under this part to those schools in the same manner as it provides those funds to its other schools.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Information for state educational agency</inline>.—</heading><content>The local educational agency shall provide the State educational agency with information necessary to enable the State educational agency to carry out its duties under this part, including, with respect to paragraphs (16) and (17) of section 612(a), information relating to the performance of children with disabilities participating in programs carried out under this part.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Public information</inline>.—</heading><content>The local educational agency shall make available to parents of children with disabilities and to the general public all documents relating to the eligibility of such agency under this part.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Exception for Prior Local Plans</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If a local educational agency or State agency has on file with the State educational agency policies and procedures that demonstrate that such local educational agency, or such State agency, as the case may be, meets any requirement of subsection (a), including any policies and procedures filed under this part as in effect before the effective date of the Individuals with Disabilities Education Act Amendments of 1997, the State educational agency shall consider such local educational agency or State agency, as the case may be, to have met such requirement for purposes of receiving assistance under this part.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Modification made by local educational agency</inline>.—</heading><content>Subject to paragraph (3), an application submitted by a local educational agency in accordance with this section shall remain in effect until it submits to the State educational agency such modifications as the local educational agency deems necessary.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Modifications required by state educational agency</inline>.—</heading><content>If, after the effective date of the Individuals with Disabilities Education Act Amendments of 1997, the provisions of this Act are amended (or the regulations developed to carry out this Act are amended), or there is a new interpretation of this Act by Federal or State courts, or there is an official finding of noncompliance with Federal or State law or regulations, the State educational agency may require a local educational agency to modify its application only to the extent necessary to ensure the local educational agency’s compliance with this part or State law.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Notification of Local Educational Agency or State Agency in Case of Ineligibility</inline>.—</heading><content>If the State educational agency determines that a local educational agency or State agency is not eligible under this section, the State educational agency shall notify the local educational agency or State agency, as the case may be, of that determination and shall provide such local educational agency or State agency with reasonable notice and an opportunity for a hearing.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Local Educational Agency Compliance</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If the State educational agency, after reasonable notice and an opportunity for a hearing, finds that <page identifier="/us/stat/111/76">111 STAT. 76</page>a local educational agency or State agency that has been determined to be eligible under this section is failing to comply with any requirement described in subsection (a), the State educational agency shall reduce or shall not provide any further payments to the local educational agency or State agency until the State educational agency is satisfied that the local educational agency or State agency, as the case may be, is complying with that requirement.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Additional requirement</inline>.—</heading><content>Any State agency or local educational agency in receipt of a notice described in paragraph (1) shall, by means of public notice, take such measures as may be necessary to bring the pendency of an action pursuant to this subsection to the attention of the public within the jurisdiction of such agency.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Consideration</inline>.—</heading><content>In carrying out its responsibilities under paragraph (1), the State educational agency shall consider any decision made in a hearing held under section 615 that is adverse to the local educational agency or State agency involved in that decision.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Joint Establishment of Eligibility</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Joint establishment</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>A State educational agency may require a local educational agency to establish its eligibility jointly with another local educational agency if the State educational agency determines that the local educational agency would be ineligible under this section because the local educational agency would not be able to establish and maintain programs of sufficient size and scope to effectively meet the needs of children with disabilities.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Charter school exception</inline>.—</heading><content>A State educational agency may not require a charter school that is a local educational agency to jointly establish its eligibility under subparagraph (A) unless it is explicitly permitted to do so under the State’s charter school statute.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Amount of payments</inline>.—</heading><content>If a State educational agency requires the joint establishment of eligibility under paragraph (1), the total amount of funds made available to the affected local educational agencies shall be equal to the sum of the payments that each such local educational agency would have received under section 611(g) if such agencies were eligible for such payments.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Requirements</inline>.—</heading><chapeau>Local educational agencies that establish joint eligibility under this subsection shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>adopt policies and procedures that are consistent with the State’s policies and procedures under section 612(a); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>be jointly responsible for implementing programs that receive assistance under this part.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Requirements for educational service agencies</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>If an educational service agency is required by State law to carry out programs under this part, the joint responsibilities given to local educational agencies under this subsection shall—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>not apply to the administration and disbursement of any payments received by that educational service agency; and<page identifier="/us/stat/111/77">111 STAT. 77</page></content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>be carried out only by that educational service agency.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Additional requirement</inline>.—</heading><content>Notwithstanding any other provision of this subsection, an educational service agency shall provide for the education of children with disabilities in the least restrictive environment, as required by section 612(a)(5).</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Coordinated Services System</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>A local educational agency may not use more than 5 percent of the amount such agency receives under this part for any fiscal year, in combination with other amounts (which shall include amounts other than education funds), to develop and implement a coordinated services system designed to improve results for children and families, including children with disabilities and their families.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Activities</inline>.—</heading><chapeau>In implementing a coordinated services system under this subsection, a local educational agency may carry out activities that include—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>improving the effectiveness and efficiency of service delivery, including developing strategies that promote accountability for results;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>service coordination and case management that facilitates the linkage of individualized education programs under this part and individualized family service plans under part C with individualized service plans under multiple Federal and State programs, such as title I of the Rehabilitation Act of 1973 (vocational rehabilitation), title XIX of the Social Security Act (Medicaid), and title XVI of the Social Security Act (supplemental security income);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>developing and implementing interagency financing strategies for the provision of education, health, mental health, and social services, including transition services and related services under this Act; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>interagency personnel development for individuals working on coordinated services.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Coordination with certain projects under elementary and secondary education act of 1965</inline>.—</heading><content>If a local educational agency is carrying out a coordinated services project under title XI of the Elementary and Secondary Education Act of 1965 and a coordinated services project under this part in the same schools, such agency shall use amounts under this subsection in accordance with the requirements of that title.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">School-Based Improvement Plan</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Each local educational agency may, in accordance with paragraph (2), use funds made available under this part to permit a public school within the jurisdiction of the local educational agency to design, implement, and evaluate a school-based improvement plan that is consistent with the purposes described in section 651(b) and that is designed to improve educational and transitional results for all children with disabilities and, as appropriate, for other children consistent with subparagraphs (A) and (B) of subsection (a)(4) in that public school.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Authority</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>A State educational agency may grant authority to a local educational agency to permit <page identifier="/us/stat/111/78">111 STAT. 78</page>a public school described in paragraph (1) (through a school-based standing panel established under paragraph (4)(B)) to design, implement, and evaluate a school-based improvement plan described in paragraph (1) for a period not to exceed 3 years.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Responsibility of local educational agency</inline>.—</heading><content>If a State educational agency grants the authority described in subparagraph (A), a local educational agency that is granted such authority shall have the sole responsibility of oversight of all activities relating to the design, implementation, and evaluation of any school-based improvement plan that a public school is permitted to design under this subsection.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Plan requirements</inline>.—</heading><chapeau>A school-based improvement plan described in paragraph (1) shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>be designed to be consistent with the purposes described in section 651(b) and to improve educational and transitional results for all children with disabilities and, as appropriate, for other children consistent with subparagraphs (A) and (B) of subsection (a)(4), who attend the school for which the plan is designed and implemented;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>be designed, evaluated, and, as appropriate, implemented by a school-based standing panel established in accordance with paragraph (4)(B);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>include goals and measurable indicators to assess the progress of the public school in meeting such goals; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>ensure that all children with disabilities receive the services described in the individualized education programs of such children.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Responsibilities of the local educational agency</inline>.—</heading><chapeau>A local educational agency that is granted authority under paragraph (2) to permit a public school to design, implement, and evaluate a school-based improvement plan shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>select each school under the jurisdiction of such agency that is eligible to design, implement, and evaluate such a plan;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>require each school selected under subparagraph (A), in accordance with criteria established by such local educational agency under subparagraph (C), to establish a school-based standing panel to carry out the duties described in paragraph (3MB);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <chapeau>establish—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>criteria that shall be used by such local educational agency in the selection of an eligible school under subparagraph (A);</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>criteria that shall be used by a public school selected under subparagraph (A) in the establishment of a school-based standing panel to carry out the duties described in paragraph (3)(B) and that shall ensure that the membership of such panel reflects the diversity of the community in which the public school is located and includes, at a minimum—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>parents of children with disabilities who attend such public school, including parents of <page identifier="/us/stat/111/79">111 STAT. 79</page>children with disabilities from unserved and underserved populations, as appropriate;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>special education and general education teachers of such public school.</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>special education and general education administrators, or the designee of such administrators, of such public school; and</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>related services providers who are responsible for providing services to the children with disabilities who attend such public school; and</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>criteria that shall be used by such local educational agency with respect to the distribution of funds under this part to carry out this subsection;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>disseminate the criteria established under subparagraph (C) to local school district personnel and local parent organizations within the jurisdiction of such local educational agency;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>require a public school that desires to design, implement, and evaluate a school-based improvement plan to submit an application at such time, in such manner, and accompanied by such information as such local educational agency shall reasonably require; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>establish procedures for approval by such local educational agency of a school-based improvement plan designed under this subsection.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Limitation</inline>.—</heading><content>A school-based improvement plan described in paragraph (1) may be submitted to a local educational agency for approval only if a consensus with respect to any matter relating to the design, implementation, or evaluation of the goals of such plan is reached by the school-based standing panel that designed such plan.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Additional requirements</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Parental involvement</inline>.—</heading><content>In carrying out the requirements of this subsection, a local educational agency shall ensure that the parents of children with disabilities are involved in the design, evaluation, and, where appropriate, implementation of school-based improvement plans in accordance with this subsection.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Plan approval</inline>.—</heading><chapeau>A local educational agency may approve a school-based improvement plan of a public school within the jurisdiction of such agency for a period of 3 years, if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the approval is consistent with the policies, procedures, and practices established by such local educational agency and in accordance with this subsection; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>a majority of parents of children who are members of the school-based standing panel, and a majority of other members of the school-based standing panel, that designed such plan agree in writing to such plan.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Extension of plan</inline>.—</heading><content>If a public school within the jurisdiction of a local educational agency meets the applicable requirements and criteria described in paragraphs (3) and (4) at the expiration of the 3-year approval period described in <page identifier="/us/stat/111/80">111 STAT. 80</page>paragraph (6)(B), such agency may approve a school-based improvement plan of such school for an additional 3-year period.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Direct Services by the State Educational Agency</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>A State educational agency shall use the payments that would otherwise have been available to a local educational agency or to a State agency to provide special education and related services directly to children with disabilities residing in the area served by that local agency, or for whom that State agency is responsible, if the State educational agency determines that the local education agency or State agency, as the case may be—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>has not provided the information needed to establish the eligibility of such agency under this section;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>is unable to establish and maintain programs of free appropriate public education that meet the requirements of subsection (a);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>is unable or unwilling to be consolidated with one or more local educational agencies in order to establish and maintain such programs; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>has one or more children with disabilities who can best be served by a regional or State program or service-delivery system designed to meet the needs of such children.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Manner and location of education and services</inline>.—</heading><content>The State educational agency may provide special education and related services under paragraph (1) in such manner and at such locations (including regional or State centers) as the State agency considers appropriate. Such education and services shall be provided in accordance with this part.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="i">“(i)</num> <heading><inline class="smallCaps">State Agency Eligibility</inline>.—</heading><chapeau>Any State agency that desires to receive a subgrant for any fiscal year under section 611(g) shall demonstrate to the satisfaction of the State educational agency that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>all children with disabilities who are participating in programs and projects funded under this part receive a free appropriate public education, and that those children and their parents are provided all the rights and procedural safeguards described in this part; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the agency meets such other conditions of this section as the Secretary determines to be appropriate.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="j">“(j)</num> <heading><inline class="smallCaps">Disciplinary Information</inline>.—</heading><content>The State may require that a local educational agency include in the records of a child with a disability a statement of any current or previous disciplinary action that has been taken against the child and transmit such statement to the same extent that such disciplinary information is included in, and transmitted with, the student records of nondisabled children. The statement may include a description of any behavior engaged in by the child that required disciplinary action, a description of the disciplinary action taken, and any other information that is relevant to the safety of the child and other individuals involved with the child. If the State adopts such a policy, and the child transfers from one school to another, the transmission of any of the child’s records must include both the child’s current individualized education program and any such statement of current or previous disciplinary action that has been taken against the child.<page identifier="/us/stat/111/81">111 STAT. 81</page></content> </subsection> </section> <section> <num value="614">“SEC. 614.</num> <heading>EVALUATIONS, ELIGIBILITY DETERMINATIONS, INDIVIDUALIZED EDUCATION PROGRAMS, AND EDUCATIONAL PLACEMENTS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1414">20 USC 1414</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Evaluations and Reevaluations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Initial evaluations</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>A State educational agency, other State agency, or local educational agency shall conduct a full and individual initial evaluation, in accordance with this paragraph and subsection (b), before the initial provision of special education and related services to a child with a disability under this part.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Procedures</inline>.—</heading><chapeau>Such initial evaluation shall consist of procedures—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>to determine whether a child is a child with a disability (as defined in section 602(3)); and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>to determine the educational needs of such child.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Parental consent</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The agency proposing to conduct an initial evaluation to determine if the child qualifies as a child with a disability as defined in section 602(3)(A) or 602(3)(B) shall obtain an informed consent from the parent of such child before the evaluation is conducted. Parental consent for evaluation shall not be construed as consent for placement for receipt of special education and related services.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Refusal</inline>.—</heading><content>If the parents of such child refuse consent for the evaluation, the agency may continue to pursue an evaluation by utilizing the mediation and due process procedures under section 615, except to the extent inconsistent with State law relating to parental consent.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Reevaluations</inline>.—</heading><chapeau>A local educational agency shall ensure that a reevaluation of each child with a disability is conducted—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>if conditions warrant a reevaluation or if the child’s parent or teacher requests a reevaluation, but at least once every 3 years; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>in accordance with subsections (b) and (c).</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Evaluation Procedures</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Notice</inline>.—</heading><content>The local educational agency shall provide notice to the parents of a child with a disability, in accordance with subsections (b)(3), (b)(4), and (c) of section 615, that describes any evaluation procedures such agency proposes to conduct.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Conduct of evaluation</inline>.—</heading><chapeau>In conducting the evaluation, the local educational agency shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>use a variety of assessment tools and strategies to gather relevant functional and developmental information, including information provided by the parent, that may assist in determining whether the child is a child with a disability and the content of the child’s individualized education program, including information related to enabling the child to be involved in and progress in the general curriculum or, for preschool children, to participate in appropriate activities;<page identifier="/us/stat/111/82">111 STAT. 82</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>not use any single procedure as the sole criterion for determining whether a child is a child with a disability or determining an appropriate educational program for the child; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>use technically sound instruments that may assess the relative contribution of cognitive and behavioral factors, in addition to physical or developmental factors.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Additional requirements</inline>.—</heading><chapeau>Each local educational agency shall ensure that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>tests and other evaluation materials used to assess a child under this section—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>are selected and administered so as not to be discriminatory on a racial or cultural basis; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>are provided and administered in the child’s native language or other mode of communication, unless it is clearly not feasible to do so; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>any standardized tests that are given to the child—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>have been validated for the specific purpose for which they are used;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>are administered by trained and knowledgeable personnel; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>are administered in accordance with any instructions provided by the producer of such tests;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>the child is assessed in all areas of suspected disability; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>assessment tools and strategies that provide relevant information that directly assists persons in determining the educational needs of the child are provided.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Determination of eligibility</inline>.—</heading><chapeau>Upon completion of administration of tests and other evaluation materials—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the determination of whether the child is a child with a disability as defined in section 602(3) shall be made by a team of qualified professionals and the parent of the child in accordance with paragraph (5); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>a copy of the evaluation report and the documentation of determination of eligibility will be given to the parent.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Special rule for eligibility determination</inline>.—</heading><content>In making a determination of eligibility under paragraph (4)(A), a child shall not be determined to be a child with a disability if the determinant factor for such determination is lack of instruction in reading or math or limited English proficiency.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Additional Requirements for Evaluation and Reevaluations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Review of existing evaluation data</inline>.—</heading><chapeau>As part of an initial evaluation (if appropriate) and as part of any reevaluation under this section, the IEP Team described in subsection (d)(1)(B) and other qualified professionals, as appropriate, shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>review existing evaluation data on the child, including evaluations and information provided by the parents of the child, current classroom-based assessments and observations, and teacher and related services providers observation; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>on the basis of that review, and input from the child’s parents, identify what additional data, if any, are needed to determine—<page identifier="/us/stat/111/83">111 STAT. 83</page></chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>whether the child has a particular category of disability, as described in section 602(3), or, in case of a reevaluation of a child, whether the child continues to have such a disability;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the present levels of performance and educational needs of the child;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>whether the child needs special education and related services, or in the case of a reevaluation of a child, whether the child continues to need special education and related services; and</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>whether any additions or modifications to the special education and related services are needed to enable the child to meet the measurable annual goals set out in the individualized education program of the child and to participate, as appropriate, in the general curriculum.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Source of data</inline>.—</heading><content>The local educational agency shall administer such tests and other evaluation materials as may be needed to produce the data identified by the IEP Team under paragraph (1)(B).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Parental consent</inline>.—</heading><content>Each local educational agency shall obtain informed parental consent, in accordance with subsection (a)(1)(C), prior to conducting any reevaluation of a child with a disability, except that such informed parent consent need not be obtained if the local educational agency can demonstrate that it had taken reasonable measures to obtain such consent and the child’s parent has failed to respond.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Requirements if additional data are not needed</inline>.—</heading><chapeau>If the IEP Team and other qualified professionals, as appropriate, determine that no additional data are needed to determine whether the child continues to be a child with a disability, the local educational agency—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>shall notify the child’s parents of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>that determination and the reasons for it; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the right of such parents to request an assessment to determine whether the child continues to be a child with a disability; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>shall not be required to conduct such an assessment unless requested to by the child’s parents.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Evaluations before change in eligibility</inline>.—</heading><content>A local educational agency shall evaluate a child with a disability in accordance with this section before determining that the child is no longer a child with a disability.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Individualized Education Programs</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>As used in this title:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Individualized education program</inline>.—</heading><chapeau>The term ‘individualized education program’ or ‘IEP’ means a written statement for each child with a disability that is developed, reviewed, and revised in accordance with this section and that includes—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <chapeau>a statement of the child’s present levels of educational performance, including—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>how the child’s disability affects the child’s involvement and progress in the general curriculum; or<page identifier="/us/stat/111/84">111 STAT. 84</page></content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>for preschool children, as appropriate, how the disability affects the child’s participation in appropriate activities;</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>a statement of measurable annual goals, including benchmarks or short-term objectives, related to—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>meeting the child’s needs that result from the child’s disability to enable the child to be involved in and progress in the general curriculum; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>meeting each of the child’s other educational needs that result from the child’s disability;</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <chapeau>a statement of the special education and related services and supplementary aids and services to be provided to the child, or on behalf of the child, and a statement of the program modifications or supports for school personnel that will be provided for the child—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>to advance appropriately toward attaining the annual goals;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>to be involved and progress in the general curriculum in accordance with clause (i) and to participate in extracurricular and other nonacademic activities; and</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>to be educated and participate with other children with disabilities and nondisabled children in the activities described in this paragraph;</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>an explanation of the extent, if any, to which the child will not participate with nondisabled children in the regular class and in the activities described in clause (iii);</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num><subclause class="inline"><num value="I">(I)</num> <content>a statement of any individual modifications in the administration of State or districtwide assessments of student achievement that are needed in order for the child to participate in such assessment; and</content></subclause> <subclause class="indent0 fontsize10"><num value="II">“(II)</num> <chapeau>if the IEP Team determines that the child will not participate in a particular State or districtwide assessment of student achievement (or part of such an assessment), a statement of—</chapeau> <item class="indent4 fontsize10"><num value="aa">“(aa)</num> <content>why that assessment is not appropriate for the child; and</content></item> <item class="indent4 fontsize10"><num value="bb">“(bb)</num> <content>how the child will be assessed;</content></item> </subclause> </clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <content>the projected date for the beginning of the services and modifications described in clause (iii), and the anticipated frequency, location, and duration of those services and modifications;</content></clause> <clause class="indent3 fontsize10"><num value="vii">“(vii)</num><subclause class="inline"><num value="I">(I)</num> <content>beginning at age 14, and updated annually, a statement of the transition service needs of the child under the applicable components of the child’s IEP that focuses on the child’s courses of study (such as participation in advanced-placement courses or a vocational education program);</content></subclause> <subclause class="indent0 fontsize10"><num value="II">“(II)</num> <content>beginning at age 16 (or younger, if determined appropriate by the IEP Team), a statement of needed <page identifier="/us/stat/111/85">111 STAT. 85</page>transition services for the child, including, when appropriate, a statement of the interagency responsibilities or any needed linkages; and</content></subclause> <subclause class="indent0 fontsize10"><num value="III">“(III)</num> <content>beginning at least one year before the child reaches the age of majority under State law, a statement that the child has been informed of his or her rights under this title, if any, that will transfer to the child on reaching the age of majority under section 615(m); and</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="viii">“(viii)</num> <chapeau>a statement of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>how the child’s progress toward the annual goals described in clause (ii) will be measured; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <chapeau>how the child’s parents will be regularly informed (by such means as periodic report cards), at least as often as parents are informed of their nondisabled children’s progress, of—</chapeau> <item class="indent5 fontsize10"><num value="aa">“(aa)</num> <content>their child’s progress toward the annual goals described in clause (ii); and</content></item> <item class="indent5 fontsize10"><num value="bb">“(bb)</num> <content>the extent to which that progress is sufficient to enable the child to achieve the goals by the end of the year.</content></item> </subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Individualized education program team</inline>.—</heading><chapeau>The term ‘individualized education program team’ or ‘IEP Team’ means a group of individuals composed of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the parents of a child with a disability;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>at least one regular education teacher of such child (if the child is, or may be, participating in the regular education environment);</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>at least one special education teacher, or where appropriate, at least one special education provider of such child;</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <chapeau>a representative of the local educational agency who—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>is qualified to provide, or supervise the provision of, specially designed instruction to meet the unique needs of children with disabilities;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>is knowledgeable about the general curriculum; and</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>is knowledgeable about the availability of resources of the local educational agency;</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>an individual who can interpret the instructional implications of evaluation results, who may be a member of the team described in clauses (ii) through (vi);</content></clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <content>at the discretion of the parent or the agency, other individuals who have knowledge or special expertise regarding the child, including related services personnel as appropriate; and</content></clause> <clause class="indent3 fontsize10"><num value="vii">“(vii)</num> <content>whenever appropriate, the child with a disability.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Requirement that program be in effect</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>At the beginning of each school year, each local educational agency, State educational agency, or other State agency, as the case may be, shall <page identifier="/us/stat/111/86">111 STAT. 86</page>have in effect, for each child with a disability in its jurisdiction, an individualized education program, as defined in paragraph (1)(A).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Program for child aged 3 through 5</inline>.—</heading><chapeau>In the case of a child with a disability aged 3 through 5 (or, at the discretion of the State educational agency, a 2 year-old child with a disability who will turn age 3 during the school year), an individualized family service plan that contains the material described in section 636, and that is developed in accordance with this section, may serve as the IEP of the child if using that plan as the IEP is—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>consistent with State policy; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>agreed to by the agency and the child’s parents.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Development of iep</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In developing each child’s IEP, the IEP Team, subject to subparagraph (C), shall consider—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the strengths of the child and the concerns of the parents for enhancing the education of their child; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the results of the initial evaluation or most recent evaluation of the child.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Consideration of special factors</inline>.—</heading><chapeau>The IEP Team shall—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>in the case of a child whose behavior impedes his or her learning or that of others, consider, when appropriate, strategies, including positive behavioral interventions, strategies, and supports to address that behavior;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>in the case of a child with limited English proficiency, consider the language needs of the child as such needs relate to the child’s IEP;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>in the case of a child who is blind or visually impaired, provide for instruction in Braille and the use of Braille unless the IEP Team determines, after an evaluation of the child’s reading and writing skills, needs, and appropriate reading and writing media (including an evaluation of the child’s future needs for instruction in Braille or the use of Braille), that instruction in Braille or the use of Braille is not appropriate for the child;</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>consider the communication needs of the child, and in the case of a child who is deaf or hard of hearing, consider the child’s language and communication needs, opportunities for direct communications with peers and professional personnel in the child’s language and communication mode, academic level, and full range of needs, including opportunities for direct instruction in the child’s language and communication mode; and</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>consider whether the child requires assistive technology devices and services.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Requirement with respect to regular education teacher</inline>.—</heading><content>The regular education teacher of the child, as a member of the IEP Team, shall, to the extent appropriate, participate in the development of the IEP <page identifier="/us/stat/111/87">111 STAT. 87</page>of the child, including the determination of appropriate positive behavioral interventions and strategies and the determination of supplementary aids and services, program modifications, and support for school personnel consistent with paragraph (1)(A)(iii).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Review and revision of iep</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The local educational agency shall ensure that, subject to subparagraph (B), the IEP Team—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>reviews the child’s IEP periodically, but not less than annually to determine whether the annual goals for the child are being achieved; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>revises the IEP as appropriate to address—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>any lack of expected progress toward the annual goals and in the general curriculum, where appropriate;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the results of any reevaluation conducted under this section;</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>information about the child provided to, or by, the parents, as described in subsection (c)(1)(B);</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>the child’s anticipated needs; or</content></subclause> <subclause class="indent4 fontsize10"><num value="V">“(V)</num> <content>other matters.</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Requirement with respect to regular education teacher</inline>.—</heading><content>The regular education teacher of the child, as a member of the IEP Team, shall, to the extent appropriate, participate in the review and revision of the IEP of the child.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Failure to meet transition objectives</inline>.—</heading><content>If a participating agency, other than the local educational agency, fails to provide the transition services described in the IEP in accordance with paragraph (1)(A)(vii), the local educational agency shall reconvene the IEP Team to identify alternative strategies to meet the transition objectives for the child set out in that program.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Children with disabilities in adult prisons</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The following requirements do not apply to children with disabilities who are convicted as adults under State law and incarcerated in adult prisons:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>The requirements contained in section 612(a)(17) and paragraph (1)(A)(v) of this subsection (relating to participation of children with disabilities in general assessments).</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>The requirements of subclauses (I) and (II) of paragraph (1)(A)(vii) of this subsection (relating to transition planning and transition services), do not apply with respect to such children whose eligibility under this part will end, because of their age, before they will be released from prison.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Additional requirement</inline>.—</heading><content>If a child with a disability is convicted as an adult under State law and incarcerated in an adult prison, the child’s IEP Team may modify the child’s IEP or placement notwithstanding the requirements of sections 612(a)(5)(A) and 614(d)(1)(A) if the State has demonstrated a bona fide security or compelling penological interest that cannot otherwise be accommodated.<page identifier="/us/stat/111/88">111 STAT. 88</page></content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Construction</inline>.—</heading><content>Nothing in this section shall be construed to require the IEP Team to include information under one component of a child’s IEP that is already contained under another component of such IEP.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Educational Placements</inline>.—</heading><content>Each local educational agency or State educational agency shall ensure that the parents of each child with a disability are members of any group that makes decisions on the educational placement of their child.</content> </subsection> </section> <section> <num value="615">“SEC. 615.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1415">20 USC 1415</ref>.</p></sidenote> <heading>PROCEDURAL SAFEGUARDS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Establishment of Procedures</inline>.—</heading><content>Any State educational agency, State agency, or local educational agency that receives assistance under this part shall establish and maintain procedures in accordance with this section to ensure that children with disabilities and their parents are guaranteed procedural safeguards with respect to the provision of free appropriate public education by such agencies.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Types of Procedures</inline>.—</heading><chapeau>The procedures required by this section shall include—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>an opportunity for the parents of a child with a disability to examine all records relating to such child and to participate in meetings with respect to the identification, evaluation, and educational placement of the child, and the provision of a free appropriate public education to such child, and to obtain an independent educational evaluation of the child;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>procedures to protect the rights of the child whenever the parents of the child are not known, the agency cannot, after reasonable efforts, locate the parents, or the child is a ward of the State, including the assignment of an individual (who shall not be an employee of the State educational agency, the local educational agency, or any other agency that is involved in the education or care of the child) to act as a surrogate for the parents;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <chapeau>written prior notice to the parents of the child whenever such agency—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>proposes to initiate or change; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>refuses to initiate or change;</content></subparagraph> <continuation class="indent0 fontsize10">the identification, evaluation, or educational placement of the child, in accordance with subsection (c), or the provision of a free appropriate public education to the child;</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>procedures designed to ensure that the notice required by paragraph (3) is in the native language of the parents, unless it clearly is not feasible to do so;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>an opportunity for mediation in accordance with subsection (e);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>an opportunity to present complaints with respect to any matter relating to the identification, evaluation, or educational placement of the child, or the provision of a free appropriate public education to such child;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <chapeau>procedures that require the parent of a child with a disability, or the attorney representing the child, to provide notice (which shall remain confidential)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>to the State educational agency or local educational agency, as the case may be, in the complaint filed under paragraph (6); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>that shall include—<page identifier="/us/stat/111/89">111 STAT. 89</page></chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the name of the child, the address of the residence of the child, and the name of the school the child is attending;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>a description of the nature of the problem of the child relating to such proposed initiation or change, including facts relating to such problem; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>a proposed resolution of the problem to the extent known and available to the parents at the time; and</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <content>procedures that require the State educational agency to develop a model form to assist parents in filing a complaint in accordance with paragraph (7).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Content of Prior Written Notice</inline>.—</heading><chapeau>The notice required by subsection (b)(3) shall include—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>a description of the action proposed or refused by the agency;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>an explanation of why the agency proposes or refuses to take the action;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>a description of any other options that the agency considered and the reasons why those options were rejected;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>a description of each evaluation procedure, test, record, or report the agency used as a basis for the proposed or refused action;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>a description of any other factors that are relevant to the agency’s proposal or refusal;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>a statement that the parents of a child with a disability have protection under the procedural safeguards of this part and, if this notice is not an initial referral for evaluation, the means by which a copy of a description of the procedural safeguards can be obtained; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <content>sources for parents to contact to obtain assistance in understanding the provisions of this part.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Procedural Safeguards Notice</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>A copy of the procedural safeguards available to the parents of a child with a disability shall be given to the parents, at a minimum—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>upon initial referral for evaluation;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>upon each notification of an individualized education program meeting and upon reevaluation of the child; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>upon registration of a complaint under subsection (b)(6).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Contents</inline>.—</heading><chapeau>The procedural safeguards notice shall include a full explanation of the procedural safeguards, written in the native language of the parents, unless it clearly is not feasible to do so, and written in an easily understandable manner, available under this section and under regulations promulgated by the Secretary relating to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>independent educational evaluation;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>prior written notice;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>parental consent;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>access to educational records;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>opportunity to present complaints;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>the child’s placement during pendency of due process proceedings;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <content>procedures for students who are subject to placement in an interim alternative educational setting;<page identifier="/us/stat/111/90">111 STAT. 90</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num> <content>requirements for unilateral placement by parents of children in private schools at public expense;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="I">“(I)</num> <content>mediation;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="J">“(J)</num> <content>due process hearings, including requirements for disclosure of evaluation results and recommendations;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="K">“(K)</num> <content>State-level appeals (if applicable in that State);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="L">“(L)</num> <content>civil actions; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="M">“(M)</num> <content>attorneys’ fees.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Mediation</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Any State educational agency or local educational agency that receives assistance under this part shall ensure that procedures are established and implemented to allow parties to disputes involving any matter described in subsection (b)(6) to resolve such disputes through a mediation process which, at a minimum, shall be available whenever a hearing is requested under subsection (f) or (k).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Requirements</inline>.—</heading><chapeau>Such procedures shall meet the following requirements:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>The procedures shall ensure that the mediation process—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>is voluntary on the part of the parties;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>is not used to deny or delay a parent’s right to a due process hearing under subsection (f), or to deny any other rights afforded under this part; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>is conducted by a qualified and impartial mediator who is trained in effective mediation techniques.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>A local educational agency or a State agency may establish procedures to require parents who choose not to use the mediation process to meet, at a time and location convenient to the parents, with a disinterested party who is under contract with—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>a parent training and information center or community parent resource center in the State established under section 682 or 683; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>an appropriate alternative dispute resolution entity;</content></clause> <continuation class="indent0 fontsize10">to encourage the use, and explain the benefits, of the mediation process to the parents.</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>The State shall maintain a list of individuals who are qualified mediators and knowledgeable in laws and regulations relating to the provision of special education and related services.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>The State shall bear the cost of the mediation process, including the costs of meetings described in subparagraph (B).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>Each session in the mediation process shall be scheduled in a timely manner and shall be held in a location that is convenient to the parties to the dispute.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>An agreement reached by the parties to the dispute in the mediation process shall be set forth in a written mediation agreement.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <content>Discussions that occur during the mediation process shall be confidential and may not be used as evidence in any subsequent due process hearings or civil proceedings and the parties to the mediation process may be required <page identifier="/us/stat/111/91">111 STAT. 91</page>to sign a confidentiality pledge prior to the commencement of such process.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Impartial Due Process Hearing</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Whenever a complaint has been received under subsection (b)(6) or (k) of this section, the parents involved in such complaint shall have an opportunity for an impartial due process hearing, which shall be conducted by the State educational agency or by the local educational agency, as determined by State law or by the State educational agency.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Disclosure of evaluations and recommendations</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>At least 5 business days prior to a hearing conducted pursuant to paragraph (1), each party shall disclose to all other parties all evaluations completed by that date and recommendations based on the offering party’s evaluations that the party intends to use at the hearing.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Failure to disclose</inline>.—</heading><content>A hearing officer may bar any party that fails to comply with subparagraph (A) from introducing the relevant evaluation or recommendation at the hearing without the consent of the other party.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Limitation on conduct of hearing</inline>.—</heading><content>A hearing conducted pursuant to paragraph (1) may not be conducted by an employee of the State educational agency or the local educational agency involved in the education or care of the child.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Appeal</inline>.—</heading><content>If the hearing required by subsection (f) is conducted by a local educational agency, any party aggrieved by the findings and decision rendered in such a hearing may appeal such findings and decision to the State educational agency. Such agency shall conduct an impartial review of such decision. The officer conducting such review shall make an independent decision upon completion of such review.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Safeguards</inline>.—</heading><chapeau>Any party to a hearing conducted pursuant to subsection (f) or (k), or an appeal conducted pursuant to subsection (g), shall be accorded—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the right to be accompanied and advised by counsel and by individuals with special knowledge or training with respect to the problems of children with disabilities;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the right to present evidence and confront, cross-examine, and compel the attendance of witnesses;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>the right to a written, or, at the option of the parents, electronic verbatim record of such hearing; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>the right to written, or, at the option of the parents, electronic findings of fact and decisions (which findings and decisions shall be made available to the public consistent with the requirements of section 617(c) (relating to the confidentiality of data, information, and records) and shall also be transmitted to the advisory panel established pursuant to section 612(a)(21)).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="i">“(i)</num> <heading><inline class="smallCaps">Administrative Procedures</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Decision made in hearing</inline>.—</heading><content>A decision made in a hearing conducted pursuant to subsection (f) or (k) shall be final, except that any party involved in such hearing may appeal such decision under the provisions of subsection (g) and paragraph (2) of this subsection.<page identifier="/us/stat/111/92">111 STAT. 92</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Decision made at appeal</inline>.—</heading><content>A decision made under subsection (g) shall be final, except that any party may bring an action under paragraph (2) of this subsection.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Right to bring civil action</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Any party aggrieved by the findings and decision made under subsection (f) or (k) who does not have the right to an appeal under subsection (g), and any party aggrieved by the findings and decision under this subsection, shall have the right to bring a civil action with respect to the complaint presented pursuant to this section, which action may be brought in any State court of competent jurisdiction or in a district court of the United States without regard to the amount in controversy.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Additional requirements</inline>.—</heading><chapeau>In any action brought under this paragraph, the court—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>shall receive the records of the administrative proceedings;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>shall hear additional evidence at the request of a party; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>basing its decision on the preponderance of the evidence, shall grant such relief as the court determines is appropriate.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Jurisdiction of district courts; attorneys’ fees</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The district courts of the United States shall have jurisdiction of actions brought under this section without regard to the amount in controversy.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Award of attorneys’ fees</inline>.—</heading><content>In any action or proceeding brought under this section, the court, in its discretion, may award reasonable attorneys’ fees as part of the costs to the parents of a child with a disability who is the prevailing party.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Determination of amount of attorneys’ fees</inline>.—</heading><content>Fees awarded under this paragraph shall be based on rates prevailing in the community in which the action or proceeding arose for the kind and quality of services furnished. No bonus or multiplier may be used in calculating the fees awarded under this subsection.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Prohibition of attorneys’ fees and related costs for certain services</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <chapeau>Attorneys’ fees may not be awarded and related costs may not be reimbursed in any action or proceeding under this section for services performed subsequent to the time of a written offer of settlement to a parent if—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the offer is made within the time prescribed by Rule 68 of the Federal Rules of Civil Procedure or, in the case of an administrative proceeding, at any time more than 10 days before the proceeding begins;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the offer is not accepted within 10 days; and</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>the court or administrative hearing officer finds that the relief finally obtained by the parents is not more favorable to the parents than the offer of settlement.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>Attorneys’ fees may not be awarded relating to any meeting of the IEP Team unless such meeting <page identifier="/us/stat/111/93">111 STAT. 93</page>is convened as a result of an administrative proceeding or judicial action, or, at the discretion of the State, for a mediation described in subsection (e) that is conducted prior to the filing of a complaint under subsection (b)(6) or (k) of this section.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Exception to prohibition on attorneys’ fees and related costs</inline>.—</heading><content>Notwithstanding subparagraph (D), an award of attorneys’ fees and related costs may be made to a parent who is the prevailing party and who was substantially justified in rejecting the settlement offer.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <heading><inline class="smallCaps">Reduction in amount of attorneys’ fees</inline>.—</heading><chapeau>Except as provided in subparagraph (G), whenever the court finds that—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the parent, during the course of the action or proceeding, unreasonably protracted the final resolution of the controversy;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the amount of the attorneys’ fees otherwise authorized to be awarded unreasonably exceeds the hourly rate prevailing in the community for similar services by attorneys of reasonably comparable skill, reputation, and experience;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>the time spent and legal services furnished were excessive considering the nature of the action or proceeding; or</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>the attorney representing the parent did not provide to the school district the appropriate information in the due process complaint in accordance with subsection (b)(7);</content></clause> <continuation class="indent0 fontsize10">the court shall reduce, accordingly, the amount of the attorneys’ fees awarded under this section.</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <heading><inline class="smallCaps">Exception to reduction in amount of attorneys’ fees</inline>.—</heading><content>The provisions of subparagraph (F) shall not apply in any action or proceeding if the court finds that the State or local educational agency unreasonably protracted the final resolution of the action or proceeding or there was a violation of this section.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="j">“(j)</num> <heading><inline class="smallCaps">Maintenance of Current Educational Placement</inline>.—</heading><content>Except as provided in subsection (k)(7), during the pendency of any proceedings conducted pursuant to this section, unless the State or local educational agency and the parents otherwise agree, the child shall remain in the then-current educational placement of such child, or, if applying for initial admission to a public school, shall, with the consent of the parents, be placed in the public school program until all such proceedings have been completed.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="k">“(k)</num> <heading><inline class="smallCaps">Placement in Alternative Educational Setting</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Authority of school personnel</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>School personnel under this section may order a change in the placement of a child with a disability—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>to an appropriate interim alternative educational setting, another setting, or suspension, for not more than 10 school days (to the extent such alternatives would be applied to children without disabilities); and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>to an appropriate interim alternative educational setting for the same amount of time that a child without a disability would be subject to discipline, but for not more than 45 days if—<page identifier="/us/stat/111/94">111 STAT. 94</page></chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the child carries a weapon to school or to a school function under the jurisdiction of a State or a local educational agency; or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the child knowingly possesses or uses illegal drugs or sells or solicits the sale of a controlled substance while at school or a school function under the jurisdiction of a State or local educational agency.</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>Either before or not later than 10 days after taking a disciplinary action described in subparagraph (A)—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>if the local educational agency did not conduct a functional behavioral assessment and implement a behavioral intervention plan for such child before the behavior that resulted in the suspension described in subparagraph (A), the agency shall convene an IEP meeting to develop an assessment plan to address that behavior; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>if the child already has a behavioral intervention plan, the IEP Team shall review the plan and modify it, as necessary, to address the behavior.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Authority of hearing officer</inline>.—</heading><chapeau>A hearing officer under this section may order a change in the placement of a child with a disability to an appropriate interim alternative educational setting for not more than 45 days if the hearing officer—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>determines that the public agency has demonstrated by substantial evidence that maintaining the current placement of such child is substantially likely to result in injury to the child or to others;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>considers the appropriateness of the child’s current placement;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>considers whether the public agency has made reasonable efforts to minimize the risk of harm in the child’s current placement, including the use of supplementary aids and services; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>determines that the interim alternative educational setting meets the requirements of paragraph (3)(B).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Determination of setting</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The alternative educational setting described in paragraph (1)(A)(ii) shall be determined by the IEP Team.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Additional requirements</inline>.—</heading><chapeau>Any interim alternative educational setting in which a child is placed under paragraph (1) or (2) shall—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>be selected so as to enable the child to continue to participate in the general curriculum, although in another setting, and to continue to receive those services and modifications, including those described in the child’s current IEP, that will enable the child to meet the goals set out in that IEP; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>include services and modifications designed to address the behavior described in paragraph (1) or paragraph (2) so that it does not recur.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Manifestation determination review</inline>.—<page identifier="/us/stat/111/95">111 STAT. 95</page></heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>If a disciplinary action is contemplated as described in paragraph (1) or paragraph (2) for a behavior of a child with a disability described in either of those paragraphs, or if a disciplinary action involving a change of placement for more than 10 days is contemplated for a child with a disability who has engaged in other behavior that violated any rule or code of conduct of the local educational agency that applies to all children—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>not later than the date on which the decision to take that action is made, the parents shall be notified of that decision and of all procedural safeguards accorded under this section; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>immediately, if possible, but in no case later than 10 school days after the date on which the decision to take that action is made, a review shall be conducted of the relationship between the child’s disability and the behavior subject to the disciplinary action.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Individuals to carry out review</inline>.—</heading><content>A review described in subparagraph (A) shall be conducted by the IEP Team and other qualified personnel.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Conduct of review</inline>.—</heading><chapeau>In carrying out a review described in subparagraph (A), the IEP Team may determine that the behavior of the child was not a manifestation of such child’s disability only if the IEP Team—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <chapeau>first considers, in terms of the behavior subject to disciplinary action, all relevant information, including—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>evaluation and diagnostic results, including such results or other relevant information supplied by the parents of the child;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>observations of the child; and</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>the child’s IEP and placement; and</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>then determines that—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>in relationship to the behavior subject to disciplinary action, the child’s IEP and placement were appropriate and the special education services, supplementary aids and services, and behavior intervention strategies were provided consistent with the child’s IEP and placement;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the child’s disability did not impair the ability of the child to understand the impact and consequences of the behavior subject to disciplinary action; and</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>the child’s disability did not impair the ability of the child to control the behavior subject to disciplinary action.</content></subclause> </clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Determination that behavior was not manifestation of disability</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If the result of the review described in paragraph (4) is a determination, consistent with paragraph (4)(C), that the behavior of the child with a disability was not a manifestation of the child’s disability, the relevant disciplinary procedures applicable to children without disabilities may be applied to the child in the same manner in which they would be applied to children without disabilities, except as provided in section 612(a)(1).<page identifier="/us/stat/111/96">111 STAT. 96</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Additional requirement</inline>.—</heading><content>If the public agency initiates disciplinary procedures applicable to all children, the agency shall ensure that the special education and disciplinary records of the child with a disability are transmitted for consideration by the person or persons making the final determination regarding the disciplinary action.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Parent appeal</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>If the child’s parent disagrees with a determination that the child’s behavior was not a manifestation of the child’s disability or with any decision regarding placement, the parent may request a hearing.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>The State or local educational agency shall arrange for an expedited hearing in any case described in this subsection when requested by a parent.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Review of decision</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>In reviewing a decision with respect to the manifestation determination, the hearing officer shall determine whether the public agency has demonstrated that the child’s behavior was not a manifestation of such child’s disability consistent with the requirements of paragraph (4)(C).</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>In reviewing a decision under paragraph (1)(A)(ii) to place the child in an interim alternative educational setting, the hearing officer shall apply the standards set out in paragraph (2).</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Placement during appeals</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>When a parent requests a hearing regarding a disciplinary action described in paragraph (1)(A)(ii) or paragraph (2) to challenge the interim alternative educational setting or the manifestation determination, the child shall remain in the interim alternative educational setting pending the decision of the hearing officer or until the expiration of the time period provided for in paragraph (1)(A)(ii) or paragraph (2), whichever occurs first, unless the parent and the State or local educational agency agree otherwise.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Current placement</inline>.—</heading><content>If a child is placed in an interim alternative educational setting pursuant to paragraph (1)(A)(ii) or paragraph (2) and school personnel propose to change the child’s placement after expiration of the interim alternative placement, during the pendency of any proceeding to challenge the proposed change in placement, the child shall remain in the current placement (the child’s placement prior to the interim alternative educational setting), except as provided in subparagraph (C).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Expedited hearing</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>If school personnel maintain that it is dangerous for the child to be in the current placement (placement prior to removal to the interim alternative education setting) during the pendency of the due process proceedings, the local educational agency may request an expedited hearing.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>In determining whether the child may be placed in the alternative educational setting or in <page identifier="/us/stat/111/97">111 STAT. 97</page>another appropriate placement ordered by the hearing officer, the hearing officer shall apply the standards set out in paragraph (2).</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <heading><inline class="smallCaps">Protections for children not yet eligible for special education and related services</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>A child who has not been determined to be eligible for special education and related services under this part and who has engaged in behavior that violated any rule or code of conduct of the local educational agency, including any behavior described in paragraph (1), may assert any of the protections provided for in this part if the local educational agency had knowledge (as determined in accordance with this paragraph) that the child was a child with a disability before the behavior that precipitated the disciplinary action occurred.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Basis of knowledge</inline>.—</heading><chapeau>A local educational agency shall be deemed to have knowledge that a child is a child with a disability if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the parent of the child has expressed concern in writing (unless the parent is illiterate or has a disability that prevents compliance with the requirements contained in this clause) to personnel of the appropriate educational agency that the child is in need of special education and related services;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the behavior or performance of the child demonstrates the need for such services;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>the parent of the child has requested an evaluation of the child pursuant to section 614; or</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>the teacher of the child, or other personnel of the local educational agency, has expressed concern about the behavior or performance of the child to the director of special education of such agency or to other personnel of the agency.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Conditions that apply if no basis of knowledge</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If a local educational agency does not have knowledge that a child is a child with a disability (in accordance with subparagraph (B)) prior to taking disciplinary measures against the child, the child may be subjected to the same disciplinary measures as measures applied to children without disabilities who engaged in comparable behaviors consistent with clause (ii).</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Limitations</inline>.—</heading><content>If a request is made for an evaluation of a child during the time period in which the child is subjected to disciplinary measures under paragraph (1) or (2), the evaluation shall be conducted in an expedited manner. If the child is determined to be a child with a disability, taking into consideration information from the evaluation conducted by the agency and information provided by the parents, the agency shall provide special education and related services in accordance with the provisions of this part, except that, pending the results of the evaluation, the child shall remain in the educational placement determined by school authorities.<page identifier="/us/stat/111/98">111 STAT. 98</page></content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="9">“(9)</num> <heading><inline class="smallCaps">Referral to and action by law enforcement and judicial authorities</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Nothing in this part shall be construed to prohibit an agency from reporting a crime committed by a child with a disability to appropriate authorities or to prevent State law enforcement and judicial authorities from exercising their responsibilities with regard to the application of Federal and State law to crimes committed by a child with a disability.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>An agency reporting a crime committed by a child with a disability shall ensure that copies of the special education and disciplinary records of the child are transmitted for consideration by the appropriate authorities to whom it reports the crime.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="10">“(10)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this subsection, the following definitions apply:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Controlled substance</inline>.—</heading><content>The term ‘controlled substance’ means a drug or other substance identified under schedules I, II, III, IV, or V in section 202(c) of the Controlled Substances Act (21 U.S.C. 812(c)).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Illegal drug</inline>.—</heading><chapeau>The term ‘illegal drug’—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>means a controlled substance; but</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>does not include such a substance that is legally possessed or used under the supervision of a licensed health-care professional or that is legally possessed or used under any other authority under that Act or under any other provision of Federal law.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Substantial evidence</inline>.—</heading><content>The term ‘substantial evidence’ means beyond a preponderance of the evidence.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Weapon</inline>.—</heading><content>The term ‘weapon’ has the meaning given the term ‘dangerous weapon under paragraph (2) of the first subsection (g) of section 930 of title 18, United States Code.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="l">“(l)</num> <heading><inline class="smallCaps">Rule of Construction</inline>.—</heading><content>Nothing in this title shall be construed to restrict or limit the rights, procedures, and remedies available under the Constitution, the Americans with Disabilities Act of 1990, title V of the Rehabilitation Act of 1973, or other Federal laws protecting the rights of children with disabilities, except that before the filing of a civil action under such laws seeking relief that is also available under this part, the procedures under subsections (f) and (g) shall be exhausted to the same extent as would be required had the action been brought under this part.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="m">“(m)</num> <heading><inline class="smallCaps">Transfer of Parental Rights at Age of Majority</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>A State that receives amounts from a grant under this part may provide that, when a child with a disability reaches the age of majority under State law (except for a child with a disability who has been determined to be incompetent under State law)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the public agency shall provide any notice required by this section to both the individual and the parents;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>all other rights accorded to parents under this part transfer to the child;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>the agency shall notify the individual and the parents of the transfer of rights; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>all rights accorded to parents under this part transfer to children who are incarcerated in an adult or juvenile Federal, State, or local correctional institution.<page identifier="/us/stat/111/99">111 STAT. 99</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Special rule</inline>.—</heading><content>If, under State law, a child with a disability who has reached the age of majority under State law, who has not been determined to be incompetent, but who is determined not to have the ability to provide informed consent with respect to the educational program of the child, the State shall establish procedures for appointing the parent of the child, or if the parent is not available, another appropriate individual, to represent the educational interests of the child throughout the period of eligibility of the child under this part.</content></paragraph> </subsection> </section> <section> <num value="616">“SEC. 616.</num> <heading>WITHHOLDING AND JUDICIAL REVIEW.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1416">20 USC 1416</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Withholding of Payments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Whenever the Secretary, after reasonable notice and opportunity for hearing to the State educational agency involved (and to any local educational agency or State agency affected by any failure described in subparagraph (B)), finds—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>that there has been a failure by the State to comply substantially with any provision of this part; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>that there is a failure to comply with any condition of a local educational agency’s or State agency’s eligibility under this part, including the terms of any agreement to achieve compliance with this part within the timelines specified in the agreement;</content></subparagraph> <continuation class="indent0 fontsize10">the Secretary shall, after notifying the State educational agency, withhold, in whole or in part, any further payments to the State under this part, or refer the matter for appropriate enforcement action, which may include referral to the Department of Justice.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Nature of withholding</inline>.—</heading><content>If the Secretary withholds further payments under paragraph (1), the Secretary may determine that such withholding will be limited to programs or projects, or portions thereof, affected by the failure, or that the State educational agency shall not make further payments under this part to specified local educational agencies or State agencies affected by the failure. Until the Secretary is satisfied that there is no longer any failure to comply with the provisions of this part, as specified in subparagraph (A) or (B) of paragraph (1), payments to the State under this part shall be withheld in whole or in part, or payments by the State educational agency under this part shall be limited to local educational agencies and State agencies whose actions did not cause or were not involved in the failure, as the case may be. Any State educational agency, State agency, or local educational agency that has received notice under paragraph (1) shall, by means of a public notice, take such measures as may be necessary to bring the pendency of an action pursuant to this subsection to the attention of the public within the jurisdiction of such agency.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Judicial review</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If any State is dissatisfied with the Secretary’s final action with respect to the eligibility of the State under section 612, such State may, not later than 60 days after notice of such action, file with the United States court of appeals for the circuit in which such State is located a petition for review of that action. A copy of the petition <page identifier="/us/stat/111/100">111 STAT. 100</page>shall be forthwith transmitted by the clerk of the court to <sidenote><p class="indent0 firstIndent0 fontsize8">Records.</p></sidenote>the Secretary. The Secretary thereupon shall file in the court the record of the proceedings upon which the Secretary’s action was based, as provided in section 2112 of title 28. United States Code.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Jurisdiction; review by united states supreme court</inline>.—</heading><content>Upon the filing of such petition, the court shall have jurisdiction to affirm the action of the Secretary or to set it aside, m whole or in part. The judgment of the court shall be subject to review by the Supreme Court of the United States upon certiorari or certification as provided in section 1254 of title 28, United States Code.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Standard of review</inline>.—</heading><content>The findings of fact by the Secretary, if supported by substantial evidence, shall be conclusive, but the court, for good cause shown, may remand the case to the Secretary to take further evidence, and the Secretary may thereupon make new or modified findings of fact and may modify the Secretary’s previous action, and shall file in the court the record of the further proceedings. Such new or modified findings of fact shall likewise be conclusive if supported by substantial evidence.</content></paragraph> </subsection> <paragraph class="indent1 fontsize10"><num value="c">“(c)</num> <heading><inline class="smallCaps">Divided state agency responsibility</inline>.—</heading><chapeau>For purposes of this section, where responsibility for ensuring that the requirements of this part are met with respect to children with disabilities who are convicted as adults under State law and incarcerated in adult prisons is assigned to a public agency other than the State educational agency pursuant to section 612(a)(11)(C), the Secretary, in instances where the Secretary finds that the failure to comply substantially with the provisions of this part are related to a failure by the public agency, shall take appropriate corrective action to ensure compliance with this part, except—</chapeau> <subparagraph class="indent2 fontsize10"><num value="1">“(1)</num> <content>any reduction or withholding of payments to the State is proportionate to the total funds allotted under section 611 to the State as the number of eligible children with disabilities in adult prisons under the supervision of the other public agency is proportionate to the number of eligible individuals with disabilities in the State under the supervision of the State educational agency; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="2">“(2)</num> <content>any withholding of funds under paragraph (1) shall be limited to the specific agency responsible for the failure to comply with this part.</content></subparagraph> </paragraph> </section> <section> <num value="617">“SEC. 617.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1417">20 USC 1417</ref>.</p></sidenote> <heading>ADMINISTRATION.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Responsibilities of Secretary</inline>.—</heading><chapeau>In carrying out this part, the Secretary shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <chapeau>cooperate with, and (directly or by grant or contract) furnish technical assistance necessary to, the State in matters relating to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the education of children with disabilities; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>carrying out this part; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>provide short-term training programs and institutes.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Rules and Regulations</inline>.—</heading><content>In carrying out the provisions of this part, the Secretary shall issue regulations under this Act only to the extent that such regulations are necessary to ensure that there is compliance with the specific requirements of this Act.<page identifier="/us/stat/111/101">111 STAT. 101</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Confidentiality</inline>.—</heading><content>The Secretary shall take appropriate action, in accordance with the provisions of section 444 of the General Education Provisions Act (20 U.S.C. 1232g), to assure the protection of the confidentiality of any personally identifiable data, information, and records collected or maintained by the Secretary and by State and local educational agencies pursuant to the provisions of this part.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Personnel</inline>.—</heading><content>The Secretary is authorized to hire qualified personnel necessary to carry out the Secretary’s duties under subsection (a) and under sections 618, 661, and 673 (or their predecessor authorities through October 1, 1997) without regard to the provisions of title 5, United States Code, relating to appointments in the competitive service and without regard to chapter 51 and subchapter III of chapter 53 of such title relating to classification and general schedule pay rates, except that no more than twenty such personnel shall be employed at any time.</content> </subsection> </section> <section> <num value="618">“SEC. 618.</num> <heading>PROGRAM INFORMATION.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1418">20 USC 1418</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Each State that receives assistance under this part, and the Secretary of the Interior, shall provide data each year to the Secretary—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num><subparagraph class="inline"><num value="A">(A)</num> <chapeau>on—</chapeau> <clause class="indent2 fontsize10"><num value="i">“(i)</num> <content>the number of children with disabilities, by race, ethnicity, and disability category, who are receiving a free appropriate public education;</content></clause> <clause class="indent2 fontsize10"><num value="ii">“(ii)</num> <content>the number of children with disabilities, by race and ethnicity, who are receiving early intervention services;</content></clause> <clause class="indent2 fontsize10"><num value="iii">“(iii)</num> <content>the number of children with disabilities, by race, ethnicity, and disability category, who are participating in regular education;</content></clause> <clause class="indent2 fontsize10"><num value="iv">“(iv)</num> <content>the number of children with disabilities, by race, ethnicity, and disability category, who are in separate classes, separate schools or facilities, or public or private residential facilities;</content></clause> <clause class="indent2 fontsize10"><num value="v">“(v)</num> <content>the number of children with disabilities, by race, ethnicity, and disability category, who, for each year of age from age 14 to 21, stopped receiving special education and related services because of program completion or other reasons and the reasons why those children stopped receiving special education and related services;</content></clause> <clause class="indent2 fontsize10"><num value="vi">“(vi)</num> <content>the number of children with disabilities, by race and ethnicity, who, from birth through age 2, stopped receiving early intervention services because of program completion or for other reasons; and</content></clause> <clause class="indent2 fontsize10"><num value="vii">“(vii)</num><subclause class="inline"><num value="I">(I)</num> <content>the number of children with disabilities, by race, ethnicity, and disability category, who under subparagraphs (A)(ii) and (B) of section 615(k)(1), are removed to an interim alternative educational setting;</content></subclause> <subclause class="indent2 fontsize10"><num value="II">“(II)</num> <content>the acts or items precipitating those removals; and</content></subclause> <subclause class="indent2 fontsize10"><num value="III">“(III)</num> <content>the number of children with disabilities who are subject to long-term suspensions or expulsions; and</content></subclause> </clause> </subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B)</num> <content>on the number of infants and toddlers, by race and ethnicity, who are at risk of having substantial developmental delays (as described in section 632), and who are receiving early intervention services under part C; and<page identifier="/us/stat/111/102">111 STAT. 102</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>on any other information that may be required by the Secretary.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Sampling</inline>.—</heading><content>The Secretary may permit States and the Secretary of the Interior to obtain the data described in subsection (a) through sampling.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Disproportionality</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Each State that receives assistance under this part, and the Secretary of the Interior, shall provide for the collection and examination of data to determine if significant disproportionality based on race is occurring in the State with respect to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the identification of children as children with disabilities, including the identification of children as children with disabilities in accordance with a particular impairment described in section 602(3); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the placement in particular educational settings of such children.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Review and revision of policies, practices, and procedures</inline>.—</heading><content>In the case of a determination of significant disproportionality with respect to the identification of children as children with disabilities, or the placement in particular educational settings of such children, in accordance with paragraph (1), the State or the Secretary of the Interior, as the case may be, shall provide for the review and, if appropriate, revision of the policies, procedures, and practices used in such identification or placement to ensure that such policies, procedures, and practices comply with the requirements of this Act.</content></paragraph> </subsection> </section> <section> <num value="619">“SEC. 619.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1419">20 USC 1419</ref>.</p></sidenote> <heading>PRESCHOOL GRANTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>The Secretary shall provide grants under this section to assist States to provide special education and related services, in accordance with this part—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>to children with disabilities aged 3 through 5, inclusive; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>at the State’s discretion, to 2-year-old children with disabilities who will turn 3 during the school year.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Eligibility</inline>.—</heading><chapeau>A State shall be eligible for a grant under this section if such State—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>is eligible under section 612 to receive a grant under this part; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>makes a free appropriate public education available to all children with disabilities, aged 3 through 5, residing in the State.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Allocations to States</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>After reserving funds for studies and evaluations under section 674(e), the Secretary shall allocate the remaining amount among the States in accordance with paragraph (2) or (3), as the case may be.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Increase in funds</inline>.—</heading><chapeau>If the amount available for allocations to States under paragraph (1) is equal to or greater than the amount allocated to the States under this section for the preceding fiscal year, those allocations shall be calculated as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num><clause class="inline"><num value="i">(i)</num> <chapeau>Except as provided in subparagraph (B), the Secretary shall—</chapeau> <subclause class="indent3 fontsize10"><num value="I">“(I)</num> <content>allocate to each State the amount it received for fiscal year 1997;<page identifier="/us/stat/111/103">111 STAT. 103</page></content></subclause> <subclause class="indent3 fontsize10"><num value="II">“(II)</num> <content>allocate 85 percent of any remaining funds to States on the basis of their relative populations of children aged 3 through 5; and</content></subclause> <subclause class="indent3 fontsize10"><num value="III">“(III)</num> <content>allocate 15 percent of those remaining funds to States on the basis of their relative populations of all children aged 3 through 5 who are living in poverty.</content></subclause> </clause> <clause class="indent0 fontsize10"><num value="ii">“(ii)</num> <content>For the purpose of making grants under this paragraph, the Secretary shall use the most recent population data, including data on children living in poverty, that are available and satisfactory to the Secretary.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>Notwithstanding subparagraph (A), allocations under this paragraph shall be subject to the following:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>No State’s allocation shall be less than its allocation for the preceding fiscal year.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>No State’s allocation shall be less than the greatest of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <chapeau>the sum of—</chapeau> <item class="indent5 fontsize10"><num value="aa">“(aa)</num> <content>the amount it received for fiscal year 1997; and</content></item> <item class="indent5 fontsize10"><num value="bb">“(bb)</num> <content>one third of one percent of the amount by which the amount appropriated under subsection (j) exceeds the amount appropriated under this section for fiscal year 1997;</content></item> </subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <chapeau>the sum of—</chapeau> <item class="indent5 fontsize10"><num value="aa">“(aa)</num> <content>the amount it received for the preceding fiscal year; and</content></item> <item class="indent5 fontsize10"><num value="bb">“(bb)</num> <content>that amount multiplied by the percentage by which the increase in the funds appropriated from the preceding fiscal year exceeds 1.5 percent; or</content></item> </subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <chapeau>the sum of—</chapeau> <item class="indent5 fontsize10"><num value="aa">“(aa)</num> <content>the amount it received for the preceding fiscal year; and</content></item> <item class="indent5 fontsize10"><num value="bb">“(bb)</num> <content>that amount multiplied by 90 percent of the percentage increase in the amount appropriated from the preceding fiscal year.</content></item> </subclause> </clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <chapeau>Notwithstanding clause (ii), no State’s allocation under this paragraph shall exceed the sum of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the amount it received for the preceding fiscal year; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>that amount multiplied by the sum of 1.5 percent and the percentage increase in the amount appropriated.</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>If the amount available for allocations under this paragraph is insufficient to pay those allocations in full, those allocations shall be ratably reduced, subject to subparagraph (B)(i).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Decrease in Funds</inline>.—</heading><chapeau>If the amount available for allocations to States under paragraph (1) is less than the amount allocated to the States under this section for the preceding fiscal year, those allocations shall be calculated as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>If the amount available for allocations is greater than the amount allocated to the States for fiscal year 1997, each State shall be allocated the sum of—<page identifier="/us/stat/111/104">111 STAT. 104</page></chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the amount it received for fiscal year 1997; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>an amount that bears the same relation to any remaining funds as the increase the State received for the preceding fiscal year over fiscal year 1997 bears to the total of all such increases for all States.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>If the amount available for allocations is equal to or less than the amount allocated to the States for fiscal year 1997, each State shall be allocated the amount it received for that year, ratably reduced, if necessary.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Outlying areas</inline>.—</heading><content>The Secretary shall increase the fiscal year 1998 allotment of each outlying area under section 611 by at least the amount that that area received under this section for fiscal year 1997.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Reservation for State Activities</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Each State may retain not more than the amount described in paragraph (2) for administration and other State-level activities in accordance with subsections (e) and (f).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Amount described</inline>.—</heading><chapeau>For each fiscal year, the Secretary shall determine and report to the State educational agency an amount that is 25 percent of the amount the State received under this section for fiscal year 1997, cumulatively adjusted by the Secretary for each succeeding fiscal year by the lesser of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the percentage increase, if any, from the preceding fiscal year in the State’s allocation under this section; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the percentage increase, if any, from the preceding fiscal year in the Consumer Price Index For All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">State Administration</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>For the purpose of administering this section (including the coordination of activities under this part with, and providing technical assistance to, other programs that provide services to children with disabilities) a State may use not more than 20 percent of the maximum amount it may retain under subsection (d) for any fiscal year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Administration of part c</inline>.—</heading><content>Funds described in paragraph (1) may also be used for the administration of part C of this Act, if the State educational agency is the lead agency for the State under that part.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Other State-Level Activities</inline>.—</heading><chapeau>Each State shall use any funds it retains under subsection (d) and does not use for administration under subsection (e)—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>for support services (including establishing and implementing the mediation process required by section 615(e)), which may benefit children with disabilities younger than 3 or older than 5 as long as those services also benefit children with disabilities aged 3 through 5;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>for direct services for children eligible for services under this section;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>to develop a State improvement plan under subpart 1 of part D;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>for activities at the State and local levels to meet the performance goals established by the State under section <page identifier="/us/stat/111/105">111 STAT. 105</page>612(a)(16) and to support implementation of the State improvement plan under subpart 1 of part D if the State receives funds under that subpart; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>to supplement other funds used to develop and implement a Statewide coordinated services system designed to improve results for children and families, including children with disabilities and their families, but not to exceed one percent of the amount received by the State under this section for a fiscal year.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Subgrants to Local Educational Agencies</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Subgrants required</inline>.—</heading><chapeau>Each State that receives a grant under this section for any fiscal year shall distribute any of the grant funds that it does not reserve under subsection (d) to local educational agencies in the State that have established their eligibility under section 613, as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Base payments</inline>.—</heading><content>The State shall first award each agency described in paragraph (1) the amount that agency would have received under this section for fiscal year 1997 if the State had distributed 75 percent of its grant for that year under section 619(c)(3), as then in effect.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Allocation of remaining funds</inline>.—</heading><chapeau>After making allocations under subparagraph (A), the State shall—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>allocate 85 percent of any remaining funds to those agencies on the basis of the relative numbers of children enrolled in public and private elementary and secondary schools within the agency’s jurisdiction; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>allocate 15 percent of those remaining funds to those agencies in accordance with their relative numbers of children living in poverty, as determined by the State educational agency.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Reallocation of funds</inline>.—</heading><content>If a State educational agency determines that a local educational agency is adequately providing a free appropriate public education to all children with disabilities aged 3 through 5 residing in the area served by that agency with State and local funds, the State educational agency may reallocate any portion of the funds under this section that are not needed by that local agency to provide a free appropriate public education to other local educational agencies in the State that are not adequately providing special education and related services to all children with disabilities aged 3 through 5 residing in the areas they serve.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Part C Inapplicable</inline>.—</heading><content>Part C of this Act does not apply to any child with a disability receiving a free appropriate public education, in accordance with this part, with funds received under this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="i">“(i)</num> <heading><inline class="smallCaps">Definition</inline>.—</heading><content>For the purpose of this section, the term ‘State’ means each of the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="j">“(j)</num> <heading><inline class="smallCaps">Authorization of Appropriations</inline>.—</heading><content>For the purpose of carrying out this section, there are authorized to be appropriated to the Secretary $500,000,000 for fiscal year 1998 and such sums as may be necessary for each subsequent fiscal year.<page identifier="/us/stat/111/106">111 STAT. 106</page></content> </subsection> </section> </part> <part> <num value="C">“PART C—</num><heading>INFANTS AND TODDLERS WITH DISABILITIES</heading> <section> <num value="631">“SEC. 631.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1431">20 USC 1431</ref>.</p></sidenote> <heading>FINDINGS AND POLICY.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>The Congress finds that there is an urgent and substantial need—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>to enhance the development of infants and toddlers with disabilities and to minimize their potential for developmental delay;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>to reduce the educational costs to our society, including our Nation’s schools, by minimizing the need for special education and related services after infants and toddlers with disabilities reach school age;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>to minimize the likelihood of institutionalization of individuals with disabilities and maximize the potential for their independently living in society;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>to enhance the capacity of families to meet the special needs of their infants and toddlers with disabilities; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>to enhance the capacity of State and local agencies and service providers to identify, evaluate, and meet the needs of historically underrepresented populations, particularly minority, low-income, inner-city, and rural populations.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Policy</inline>.—</heading><chapeau>It is therefore the policy of the United States to provide financial assistance to States—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>to develop and implement a statewide, comprehensive, coordinated, multidisciplinary, interagency system that provides early intervention services for infants and toddlers with disabilities and their families;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>to facilitate the coordination of payment for early intervention services from Federal, State, local, and private sources (including public and private insurance coverage);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>to enhance their capacity to provide quality early intervention services and expand and improve existing early intervention services being provided to infants and toddlers with disabilities and their families; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>to encourage States to expand opportunities for children under 3 years of age who would be at risk of having substantial developmental delay if they did not receive early intervention services.</content></paragraph> </subsection> </section> <section> <num value="632">“SEC. 632.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1432">20 USC 1432</ref>.</p></sidenote> <heading>DEFINITIONS.</heading> <chapeau>“As used in this part:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">At-risk infant or toddler</inline>.—</heading><content>The term ‘at-risk infant or toddler’ means an individual under 3 years of age who would be at risk of experiencing a substantial developmental delay if early intervention services were not provided to the individual.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Council</inline>.—</heading><content>The term ‘council’ means a State interagency coordinating council established under section 641.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Developmental delay</inline>.—</heading><content>The term ‘developmental delay’, when used with respect to an individual residing in a State, has the meaning given such term by the State under section 635(a)(1).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Early intervention services</inline>.—</heading><chapeau>The term ‘early intervention services’ means developmental services that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>are provided under public supervision;<page identifier="/us/stat/111/107">111 STAT. 107</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>are provided at no cost except where Federal or State law provides for a system of payments by families, including a schedule of sliding fees;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <chapeau>are designed to meet the developmental needs of an infant or toddler with a disability in any one or more of the following areas—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>physical development;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>cognitive development;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>communication development;</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>social or emotional development; or</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>adaptive development;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>meet the standards of the State in which they are provided, including the requirements of this part;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <chapeau>include—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>family training, counseling, and home visits;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>special instruction;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>speech-language pathology and audiology services;</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>occupational therapy;</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>physical therapy;</content></clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <content>psychological services;</content></clause> <clause class="indent3 fontsize10"><num value="vii">“(vii)</num> <content>service coordination services;</content></clause> <clause class="indent3 fontsize10"><num value="viii">“(viii)</num> <content>medical services only for diagnostic or evaluation purposes;</content></clause> <clause class="indent3 fontsize10"><num value="ix">“(ix)</num> <content>early identification, screening, and assessment services;</content></clause> <clause class="indent3 fontsize10"><num value="x">“(x)</num> <content>health services necessary to enable the infant or toddler to benefit from the other early intervention services;</content></clause> <clause class="indent3 fontsize10"><num value="xi">“(xi)</num> <content>social work services;</content></clause> <clause class="indent3 fontsize10"><num value="xii">“(xii)</num> <content>vision services;</content></clause> <clause class="indent3 fontsize10"><num value="xiii">“(xiii)</num> <content>assistive technology devices and assistive technology services; and</content></clause> <clause class="indent3 fontsize10"><num value="xiv">“(xiv)</num> <content>transportation and related costs that are necessary to enable an infant or toddler and the infant’s or toddler’s family to receive another service described in this paragraph;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <chapeau>are provided by qualified personnel, including—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>special educators;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>speech-language pathologists and audiologists;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>occupational therapists;</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>physical therapists;</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>psychologists;</content></clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <content>social workers;</content></clause> <clause class="indent3 fontsize10"><num value="vii">“(vii)</num> <content>nurses;</content></clause> <clause class="indent3 fontsize10"><num value="viii">“(viii)</num> <content>nutritionists;</content></clause> <clause class="indent3 fontsize10"><num value="ix">“(ix)</num> <content>family therapists;</content></clause> <clause class="indent3 fontsize10"><num value="x">“(x)</num> <content>orientation and mobility specialists; and</content></clause> <clause class="indent3 fontsize10"><num value="xi">“(xi)</num> <content>pediatricians and other physicians;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <content>to the maximum extent appropriate, are provided in natural environments, including the home, and community settings in which children without disabilities participate; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num> <content>are provided in conformity with an individualized family service plan adopted in accordance with section 636.<page identifier="/us/stat/111/108">111 STAT. 108</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Infant or toddler with a disability</inline>.—</heading><chapeau>The term ‘infant or toddler with a disability’—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>means an individual under 3 years of age who needs early intervention services because the individual—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>is experiencing developmental delays, as measured by appropriate diagnostic instruments and procedures in one or more of the areas of cognitive development, physical development, communication development, social or emotional development, and adaptive development; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>has a diagnosed physical or mental condition which has a high probability of resulting in developmental delay; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>may also include, at a State’s discretion, at-risk infants and toddlers.</content></subparagraph> </paragraph> </section> <section> <num value="633">“SEC. 633.</num><sidenote><p class="indent0 firstIndent0 fontsize8">Grants.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1433">20 USC 1433</ref>.</p></sidenote> <heading>GENERAL AUTHORITY.</heading> <content>“The Secretary shall, in accordance with this part, make grants to States (from their allotments under section 643) to assist each State to maintain and implement a statewide, comprehensive, coordinated, multidisciplinary, interagency system to provide early intervention services for infants and toddlers with disabilities and their families.</content> </section> <section> <num value="634">“SEC. 634.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1434">20 USC 1434</ref>.</p></sidenote> <heading>ELIGIBILITY.</heading> <chapeau>“In order to be eligible for a grant under section 633, a State shall demonstrate to the Secretary that the State—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>has adopted a policy that appropriate early intervention services are available to all infants and toddlers with disabilities in the State and their families, including Indian infants and toddlers with disabilities and their families residing on a reservation geographically located in the State; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>has in effect a statewide system that meets the requirements of section 635.</content></paragraph> </section> <section> <num value="635">“SEC. 635.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1435">20 USC 1435</ref>.</p></sidenote> <heading>REQUIREMENTS FOR STATEWIDE SYSTEM.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>A statewide system described in section 633 shall include, at a minimum, the following components:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>A definition of the term ‘developmental delay’ that will be used by the State in carrying out programs under this part.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>A State policy that is in effect and that ensures that appropriate early intervention services are available to all infants and toddlers with disabilities and their families, including Indian infants and toddlers and their families residing on a reservation geographically located in the State.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>A timely, comprehensive, multidisciplinary evaluation of the functioning of each infant or toddler with a disability in the State, and a family-directed identification of the needs of each family of such an infant or toddler, to appropriately assist in the development of the infant or toddler.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>For each infant or toddler with a disability in the State, an individualized family service plan in accordance with section 636, including service coordination services in accordance with such service plan.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>A comprehensive child find system, consistent with part B, including a system for making referrals to service <page identifier="/us/stat/111/109">111 STAT. 109</page>providers that includes timelines and provides for participation by primary referral sources.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>A public awareness program focusing on early identification of infants and toddlers with disabilities, including the preparation and dissemination by the lead agency designated or established under paragraph (10) to all primary referral sources, especially hospitals and physicians, of information for parents on the availability of early intervention services, and procedures for determining the extent to which such sources disseminate such information to parents of infants and toddlers.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <content>A central directory which includes information on early intervention services, resources, and experts available in the State and research and demonstration projects being conducted in the State.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <chapeau>A comprehensive system of personnel development, including the training of paraprofessionals and the training of primary referral sources respecting the basic components of early intervention services available in the State, that is consistent with the comprehensive system of personnel development described in section 612(a)(14) and may include—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>implementing innovative strategies and activities for the recruitment and retention of early education service providers;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>promoting the preparation of early intervention providers who are fully and appropriately qualified to provide early intervention services under this part;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>training personnel to work in rural and inner-city areas; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>training personnel to coordinate transition services for infants and toddlers served under this part from an early intervention program under this part to preschool or other appropriate services.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="9">“(9)</num> <chapeau>Subject to subsection (b), policies and procedures relating to the establishment and maintenance of standards to ensure that personnel necessary to carry out this part are appropriately and adequately prepared and trained, including—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the establishment and maintenance of standards which are consistent with any State-approved or recognized certification, licensing, registration, or other comparable requirements which apply to the area in which such personnel are providing early intervention services; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>to the extent such standards are not based on the highest requirements in the State applicable to a specific profession or discipline, the steps the State is taking to require the retraining or hiring of personnel that meet appropriate professional requirements in the State;</content></subparagraph> <continuation class="indent0 fontsize10">except that nothing in this part, including this paragraph, prohibits the use of paraprofessionals and assistants who are appropriately trained and supervised, in accordance with State law, regulations, or written policy, to assist in the provision of early intervention services to infants and toddlers with disabilities under this part.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="10">“(10)</num> <chapeau>A single line of responsibility in a lead agency designated or established by the Governor for carrying out—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the general administration and supervision of programs and activities receiving assistance under section 633, and the monitoring of programs and activities used by <page identifier="/us/stat/111/110">111 STAT. 110</page>the State to carry out this part, whether or not such programs or activities are receiving assistance made available under section 633, to ensure that the State complies with this part;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the identification and coordination of all available resources within the State from Federal, State, local, and private sources;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>the assignment of financial responsibility in accordance with section 637(a)(2) to the appropriate agencies;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>the development of procedures to ensure that services are provided to infants and toddlers with disabilities and their families under this part in a timely manner pending the resolution of any disputes among public agencies or service providers;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>the resolution of intra- and interagency disputes; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>the entry into formal interagency agreements that define the financial responsibility of each agency for paying for early intervention services (consistent with State law) and procedures for resolving disputes and that include all additional components necessary to ensure meaningful cooperation and coordination.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="11">“(11)</num> <content>A policy pertaining to the contracting or making of other arrangements with service providers to provide early intervention services in the State, consistent with the provisions of this part, including the contents of the application used and the conditions of the contract or other arrangements.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="12">“(12)</num> <content>A procedure for securing timely reimbursements of funds used under this part in accordance with section 640(a).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="13">“(13)</num> <content>Procedural safeguards with respect to programs under this part, as required by section 639.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="14">“(14)</num> <content>A system for compiling data requested by the Secretary under section 618 that relates to this part.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="15">“(15)</num> <content>A State interagency coordinating council that meets the requirements of section 641.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="16">“(16)</num> <chapeau>Policies and procedures to ensure that, consistent with section 636(d)(5)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>to the maximum extent appropriate, early intervention services are provided in natural environments; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the provision of early intervention services for any infant or toddler occurs in a setting other than a natural environment only when early intervention cannot be achieved satisfactorily for the infant or toddler in a natural environment.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Policy</inline>.—</heading><content>In implementing subsection (a)(9), a State may adopt a policy that includes making ongoing good-faith efforts to recruit and hire appropriately and adequately trained personnel to provide early intervention services to infants and toddlers with disabilities, including, in a geographic area of the State where there is a shortage of such personnel, the most qualified individuals available who are making satisfactory progress toward completing applicable course work necessary to meet the standards described in subsection (a)(9), consistent with State law within 3 years.<page identifier="/us/stat/111/111">111 STAT. 111</page></content> </subsection> </section> <section> <num value="636">“SEC. 636.</num> <heading>INDIVIDUALIZED FAMILY SERVICE PLAN.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1436">20 USC 1436</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Assessment and Program Development</inline>.—</heading><chapeau>A statewide system described in section 633 shall provide, at a minimum, for each infant or toddler with a disability, and the infant’s or toddler’s family, to receive—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>a multidisciplinary assessment of the unique strengths and needs of the infant or toddler and the identification of services appropriate to meet such needs;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>a family-directed assessment of the resources, priorities, and concerns of the family and the identification of the supports and services necessary to enhance the family’s capacity to meet the developmental needs of the infant or toddler; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>a written individualized family service plan developed by a multidisciplinary team, including the parents, as required by subsection (e).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Periodic Review</inline>.—</heading><content>The individualized family service plan shall be evaluated once a year and the family shall be provided a review of the plan at 6-month intervals (or more often where appropriate based on infant or toddler and family needs).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Promptness After Assessment</inline>.—</heading><content>The individualized family service plan shall be developed within a reasonable time after the assessment required by subsection (a)(1) is completed. With the parents’ consent, early intervention services may commence prior to the completion of the assessment.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Content of Plan</inline>.—</heading><chapeau>The individualized family service plan shall be in writing and contain—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>a statement of the infant’s or toddler’s present levels of physical development, cognitive development, communication development, social or emotional development, and adaptive development, based on objective criteria;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>a statement of the family’s resources, priorities, and concerns relating to enhancing the development of the family’s infant or toddler with a disability;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>a statement of the major outcomes expected to be achieved for the infant or toddler and the family, and the criteria, procedures, and timelines used to determine the degree to which progress toward achieving the outcomes is being made and whether modifications or revisions of the outcomes or services are necessary;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>a statement of specific early intervention services necessary to meet the unique needs of the infant or toddler and the family, including the frequency, intensity, and method of delivering services;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>a statement of the natural environments in which early intervention services shall appropriately be provided, including a justification of the extent, if any, to which the services will not be provided in a natural environment;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>the projected dates for initiation of services and the anticipated duration of the services;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <content>the identification of the service coordinator from the profession most immediately relevant to the infant’s or toddler’s or family’s needs (or who is otherwise qualified to carry out all applicable responsibilities under this part) who will be responsible for the implementation of the plan and coordination with other agencies and persons; and<page identifier="/us/stat/111/112">111 STAT. 112</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <content>the steps to be taken to support the transition of the toddler with a disability to preschool or other appropriate services.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Parental Consent</inline>.—</heading><content>The contents of the individualized family service plan shall be fully explained to the parents and informed written consent from the parents shall be obtained prior to the provision of early intervention services described in such plan. If the parents do not provide consent with respect to a particular early intervention service, then the early intervention services to which consent is obtained shall be provided.</content> </subsection> </section> <section> <num value="637">“SEC. 637.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1437">20 USC 1437</ref>.</p></sidenote> <heading>STATE APPLICATION AND ASSURANCES.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Application</inline>.—</heading><chapeau>A State desiring to receive a grant under section 633 shall submit an application to the Secretary at such time and in such manner as the Secretary may reasonably require. The application shall contain—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>a designation of the lead agency in the State that will be responsible for the administration of funds provided under section 633;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>a designation of an individual or entity responsible for assigning financial responsibility among appropriate agencies;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <chapeau>information demonstrating eligibility of the State under section 634, including—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>information demonstrating to the Secretary’s satisfaction that the State has in effect the statewide system required by section 633; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>a description of services to be provided to infants and toddlers with disabilities and their families through the system;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>if the State provides services to at-risk infants and toddlers through the system, a description of such services;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>a description of the uses for which funds will be expended in accordance with this part;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>a description of the procedure used to ensure that resources are made available under this part for all geographic areas within the State;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <content>a description of State policies and procedures that ensure that, prior to the adoption by the State of any other policy or procedure necessary to meet the requirements of this part, there are public hearings, adequate notice of the hearings, and an opportunity for comment available to the general public, including individuals with disabilities and parents of infants and toddlers with disabilities;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <chapeau>a description of the policies and procedures to be used—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>to ensure a smooth transition for toddlers receiving early intervention services under this part to preschool or other appropriate services, including a description of how—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the families of such toddlers will be included in the transition plans required by subparagraph (C); and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>the lead agency designated or established under section 635(a)(10) will—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>notify the local educational agency for the area in which such a child resides that the child will shortly reach the age of eligibility for preschool <page identifier="/us/stat/111/113">111 STAT. 113</page>services under part B, as determined in accordance with State law;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>in the case of a child who may be eligible for such preschool services, with the approval of the family of the child, convene a conference among the lead agency, the family, and the local educational agency at least 90 days (and at the discretion of all such parties, up to 6 months) before the child is eligible for the preschool services, to discuss any such services that the child may receive; and</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>in the case of a child who may not be eligible for such preschool services, with the approval of the family, make reasonable efforts to convene a conference among the lead agency, the family, and providers of other appropriate services for children who are not eligible for preschool services under part B, to discuss the appropriate services that the child may receive;</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>to review the child’s program options for the period from the child’s third birthday through the remainder of the school year; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>to establish a transition plan; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="9">“(9)</num> <content>such other information and assurances as the Secretary may reasonably require.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Assurances</inline>.—</heading><chapeau>The application described in subsection (a)—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>shall provide satisfactory assurance that Federal funds made available under section 643 to the State will be expended in accordance with this part;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>shall contain an assurance that the State will comply with the requirements of section 640;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>shall provide satisfactory assurance that the control of funds provided under section 643, and title to property derived from those funds, will be in a public agency for the uses and purposes provided in this part and that a public agency will administer such funds and property;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <chapeau>shall provide for—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>making such reports in such form and containing such information as the Secretary may require to carry out the Secretary’s functions under this part; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>keeping such records and affording such access to them as the Secretary may find necessary to ensure the correctness and verification of those reports and proper disbursement of Federal funds under this part;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <chapeau>provide satisfactory assurance that Federal funds made available under section 643 to the State—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>will not be commingled with State funds; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>will be used so as to supplement the level of State and local funds expended for infants and toddlers with disabilities and their families and in no case to supplant those State and local funds;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>shall provide satisfactory assurance that such fiscal control and fund accounting procedures will be adopted as may be necessary to ensure proper disbursement of, and accounting for, Federal funds paid under section 643 to the State;<page identifier="/us/stat/111/114">111 STAT. 114</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <content>shall provide satisfactory assurance that policies and procedures have been adopted to ensure meaningful involvement of underserved groups, including minority, low-income, and rural families, in the planning and implementation of all the requirements of this part; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <content>shall contain such other information and assurances as the Secretary may reasonably require by regulation.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Standard for Disapproval of Application</inline>.—</heading><content>The Secretary may not disapprove such an application unless the Secretary determines, after notice and opportunity for a hearing, that the application fails to comply with the requirements of this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Subsequent State Application</inline>.—</heading><content>If a State has on file with the Secretary a policy, procedure, or assurance that demonstrates that the State meets a requirement of this section, including any policy or procedure filed under part H (as in effect before July 1, 1998), the Secretary shall consider the State to have met the requirement for purposes of receiving a grant under this part.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Modification of Application</inline>.—</heading><content>An application submitted by a State in accordance with this section shall remain in effect until the State submits to the Secretary such modifications as <sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote>the State determines necessary. This section shall apply to a modification of an application to the same extent and in the same manner as this section applies to the original application.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Modifications Required by the Secretary</inline>.—</heading><chapeau>The Secretary may require a State to modify its application under this section, but only to the extent necessary to ensure the State’s compliance with this part, if—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>an amendment is made to this Act, or a Federal regulation issued under this Act;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>a new interpretation of this Act is made by a Federal court or the State’s highest court; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>an official finding of noncompliance with Federal law or regulations is made with respect to the State.</content></paragraph> </subsection> </section> <section> <num value="638">“SEC. 638.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1438">20 USC 1438</ref>.</p></sidenote> <heading>USES OF FUNDS.</heading> <chapeau>“In addition to using funds provided under section 633 to maintain and implement the statewide system required by such section, a State may use such funds—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>for direct early intervention services for infants and toddlers with disabilities, and their families, under this part that are not otherwise funded through other public or private sources;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>to expand and improve on services for infants and toddlers and their families under this part that are otherwise available;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>to provide a free appropriate public education, in accordance with part B, to children with disabilities from their third birthday to the beginning of the following school year; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <chapeau>in any State that does not provide services for at-risk infants and toddlers under section 637(a)(4), to strengthen the statewide system by initiating, expanding, or improving collaborative efforts related to at-risk infants and toddlers, including establishing linkages with appropriate public or private community-based organizations, services, and personnel for the purposes of—<page identifier="/us/stat/111/115">111 STAT. 115</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>identifying and evaluating at-risk infants and toddlers;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>making referrals of the infants and toddlers identified and evaluated under subparagraph (A); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>conducting periodic follow-up on each such referral to determine if the status of the infant or toddler involved has changed with respect to the eligibility of the infant or toddler for services under this part.</content></subparagraph> </paragraph> </section> <section> <num value="639">“SEC. 639.</num> <heading>PROCEDURAL SAFEGUARDS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1439">20 USC 1439</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Minimum Procedures</inline>.—</heading><chapeau>The procedural safeguards required to be included in a statewide system under section 635(a)(13) shall provide, at a minimum, the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>The timely administrative resolution of complaints by parents. Any party aggrieved by the findings and decision regarding an administrative complaint shall have the right to bring a civil action with respect to the complaint in any State court of competent jurisdiction or in a district court of the United States without regard to the amount in controversy. In any action brought under this paragraph, the court<sidenote><p class="indent0 firstIndent0 fontsize8">Records.</p></sidenote> shall receive the records of the administrative proceedings, shall hear additional evidence at the request of a party, and, basing its decision on the preponderance of the evidence, shall grant such relief as the court determines is appropriate.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>The right to confidentiality of personally identifiable information, including the right of parents to written notice of and written consent to the exchange of such information among agencies consistent with Federal and State law.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>The right of the parents to determine whether they, their infant or toddler, or other family members will accept or decline any early intervention service under this part in accordance with State law without jeopardizing other early intervention services under this part.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>The opportunity for parents to examine records relating to assessment, screening, eligibility determinations, and the development and implementation of the individualized family service plan.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>Procedures to protect the rights of the infant or toddler whenever the parents of the infant or toddler are not known or cannot be found or the infant or toddler is a ward of the State, including the assignment of an individual (who shall not be an employee of the State lead agency, or other State agency, and who shall not be any person, or any employee of a person, providing early intervention services to the infant or toddler or any family member of the infant or toddler) to act as a surrogate for the parents.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>Written prior notice to the parents of the infant or toddler with a disability whenever the State agency or service provider proposes to initiate or change or refuses to initiate or change the identification, evaluation, or placement of the infant or toddler with a disability, or the provision of appropriate early intervention services to the infant or toddler.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <content>Procedures designed to ensure that the notice required by paragraph (6) fully informs the parents, in the parents’ native language, unless it clearly is not feasible to do so, of all procedures available pursuant to this section.<page identifier="/us/stat/111/116">111 STAT. 116</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <chapeau>The right of parents to use mediation in accordance with section 615(e), except that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>any reference in the section to a State educational agency shall be considered to be a reference to a State’s lead agency established or designated under section 635(a)(10);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>any reference in the section to a local educational agency shall be considered to be a reference to a local service provider or the State’s lead agency under this part, as the case may be; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>any reference in the section to the provision of free appropriate public education to children with disabilities shall be considered to be a reference to the provision of appropriate early intervention services to infants and toddlers with disabilities.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Services During Pendency of Proceedings</inline>.—</heading><content>During the pendency of any proceeding or action involving a complaint by the parents of an infant or toddler with a disability, unless the State agency and the parents otherwise agree, the infant or toddler shall continue to receive the appropriate early intervention services currently being provided or, if applying for initial services, shall receive the services not in dispute.</content> </subsection> </section> <section> <num value="640">“SEC. 640.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1440">20 USC 1440</ref>.</p></sidenote> <heading>PAYOR OF LAST RESORT.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Nonsubstitution</inline>.—</heading><content>Funds provided under section 643 may not be used to satisfy a financial commitment for services that would have been paid for from another public or private source, including any medical program administered by the Secretary of Defense, but for the enactment of this part, except that whenever considered necessary to prevent a delay in the receipt of appropriate early intervention services by an infant, toddler, or family in a timely fashion, funds provided under section 643 may be used to pay the provider of services pending reimbursement from the agency that has ultimate responsibility for the payment.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Reduction of Other Benefits</inline>.—</heading><content>Nothing in this part shall be construed to permit the State to reduce medical or other assistance available or to alter eligibility under title V of the Social Security Act (relating to maternal and child health) or title XIX of the Social Security Act (relating to Medicaid for infants or toddlers with disabilities) within the State.</content> </subsection> </section> <section> <num value="641">“SEC. 641.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1441">20 USC 1441</ref>.</p></sidenote> <heading>STATE INTERAGENCY COORDINATING COUNCIL.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Establishment</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>A State that desires to receive financial assistance under this part shall establish a State interagency coordinating council.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Appointment</inline>.—</heading><content>The council shall be appointed by the Governor. In making appointments to the council, the Governor shall ensure that the membership of the council reasonably represents the population of the State.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Chairperson</inline>.—</heading><content>The Governor shall designate a member of the council to serve as the chairperson of the council, or shall require the council to so designate such a member. Any member of the council who is a representative of the lead agency designated under section 635(a)(10) may not serve as the chairperson of the council.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Composition</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The council shall be composed as follows:<page identifier="/us/stat/111/117">111 STAT. 117</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Parents</inline>.—</heading><content>At least 20 percent of the members shall be parents of infants or toddlers with disabilities or children with disabilities aged 12 or younger, with knowledge of, or experience with, programs for infants and toddlers with disabilities. At least one such member shall be a parent of an infant or toddler with a disability or a child with a disability aged 6 or younger.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Service providers</inline>.—</heading><content>At least 20 percent of the members shall be public or private providers of early intervention services.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">State legislature</inline>.—</heading><content>At least one member shall be from the State legislature.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Personnel preparation</inline>.—</heading><content>At least one member shall be involved in personnel preparation.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Agency for early intervention services</inline>.—</heading><content>At least one member shall be from each of the State agencies involved in the provision of, or payment for, early intervention services to infants and toddlers with disabilities and their families and shall have sufficient authority to engage in policy planning and implementation on behalf of such agencies.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <heading><inline class="smallCaps">Agency for preschool services</inline>.—</heading><content>At least one member shall be from the State educational agency responsible for preschool services to children with disabilities and shall have sufficient authority to engage in policy planning and implementation on behalf of such agency.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <heading><inline class="smallCaps">Agency for health insurance</inline>.—</heading><content>At least one member shall be from the agency responsible for the State governance of health insurance.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num> <heading><inline class="smallCaps">Head start agency</inline>.—</heading><content>At least one representative from a Head Start agency or program in the State.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="I">“(I)</num> <heading><inline class="smallCaps">Child care agency</inline>.—</heading><content>At least one representative from a State agency responsible for child care.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Other members</inline>.—</heading><content>The council may include other members selected by the Governor, including a representative from the Bureau of Indian Affairs, or where there is no BIA-operated or BIA-funded school, from the Indian Health Service or the tribe or tribal council.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Meetings</inline>.—</heading><content>The council shall meet at least quarterly and in such places as it deems necessary. The meetings shall be publicly announced, and, to the extent appropriate, open and accessible to the general public.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Management Authority</inline>.—</heading><content>Subject to the approval of the Governor, the council may prepare and approve a budget using funds under this part to conduct hearings and forums, to reimburse members of the council for reasonable and necessary expenses for attending council meetings and performing council duties (including child care for parent representatives), to pay compensation to a member of the council if the member is not employed or must forfeit wages from other employment when performing official council business, to hire staff, and to obtain the services of such professional, technical, and clerical personnel as may be necessary to carry out its functions under this part.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Functions of Council</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Duties</inline>.—</heading><chapeau>The council shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>advise and assist the lead agency designated or established under section 635(a)(10) in the performance <page identifier="/us/stat/111/118">111 STAT. 118</page>of the responsibilities set forth in such section, particularly the identification of the sources of fiscal and other support for services for early intervention programs, assignment of financial responsibility to the appropriate agency, and the promotion of the interagency agreements;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>advise and assist the lead agency in the preparation of applications and amendments thereto;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>advise and assist the State educational agency regarding the transition of toddlers with disabilities to preschool and other appropriate services; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> <content>prepare and submit an annual report to the Governor and to the Secretary on the status of early intervention programs for infants and toddlers with disabilities and their families operated within the State.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Authorized activity</inline>.—</heading><content>The council may advise and assist the lead agency and the State educational agency regarding the provision of appropriate services for children from birth through age 5. The council may advise appropriate agencies in the State with respect to the integration of services for infants and toddlers with disabilities and at-risk infants and toddlers and their families, regardless of whether at-risk infants and toddlers are eligible for early intervention services in the State.</content></paragraph> </subsection> <subparagraph class="indent2 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Conflict of Interest</inline>.—</heading><content>No member of the council shall cast a vote on any matter that would provide direct financial benefit to that member or otherwise give the appearance of a conflict of interest under State law.</content> </subparagraph> </section> <section> <num value="642">“SEC. 642.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1442">20 USC 1442</ref>.</p></sidenote> <heading>FEDERAL ADMINISTRATION.</heading> <chapeau>“Sections 616, 617, and 618 shall, to the extent not inconsistent with this part, apply to the program authorized by this part, except that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>any reference in such sections to a State educational agency shall be considered to be a reference to a State’s lead agency established or designated under section 635(a)(10);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>any reference in such sections to a local educational agency, educational service agency, or a State agency shall be considered to be a reference to an early intervention service provider under this part; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>any reference to the education of children with disabilities or the education of all children with disabilities shall be considered to be a reference to the provision of appropriate early intervention services to infants and toddlers with disabilities.</content></paragraph> </section> <section> <num value="643">“SEC. 643.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1443">20 USC 1443</ref>.</p></sidenote> <heading>ALLOCATION OF FUNDS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Reservation of Funds for Outlying Areas</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>From the sums appropriated to carry out this part for any fiscal year, the Secretary may reserve up to one percent for payments to Guam, American Samoa, the Virgin Islands, and the Commonwealth of the Northern Mariana Islands in accordance with their respective needs.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Consolidation of funds</inline>.—</heading><content>The provisions of Public Law 95–134, permitting the consolidation of grants to the outlying areas, shall not apply to funds those areas receive under this part.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Payments to Indians</inline>.—<page identifier="/us/stat/111/119">111 STAT. 119</page></heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall, subject to this subsection, make payments to the Secretary of the Interior to be distributed to tribes, tribal organizations (as defined under section 4 of the Indian Self-Determination and Education Assistance Act), or consortia of the above entities for the coordination of assistance in the provision of early intervention services by the States to infants and toddlers with disabilities and their families on reservations served by elementary and secondary schools for Indian children operated or funded by the Department of the Interior. The amount of such payment for any fiscal year shall be 1.25 percent of the aggregate of the amount available to all States under this part for such fiscal year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Allocation</inline>.—</heading><content>For each fiscal year, the Secretary of the Interior shall distribute the entire payment received under paragraph (1) by providing to each tribe, tribal organization, or consortium an amount based on the number of infants and toddlers residing on the reservation, as determined annually, divided by the total of such children served by all tribes, tribal organizations, or consortia.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Information</inline>.—</heading><content>To receive a payment under this subsection, the tribe, tribal organization, or consortium shall submit such information to the Secretary of the Interior as is needed to determine the amounts to be distributed under paragraph (2).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Use of funds</inline>.—</heading><content>The funds received by a tribe, tribal organization, or consortium shall be used to assist States in child find, screening, and other procedures for the early identification of Indian children under 3 years of age and for parent training. Such funds may also be used to provide early intervention services in accordance with this part. Such activities may be carried out directly or through contracts or cooperative agreements with the BIA, local educational agencies, and other public or private nonprofit organizations. The tribe, tribal organization, or consortium is encouraged to involve Indian parents in the development and implementation of these activities. The above entities shall, as appropriate, make referrals to local, State, or Federal entities for the provision of services or further diagnosis.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Reports</inline>.—</heading><content>To be eligible to receive a grant under paragraph (2), a tribe, tribal organization, or consortium shall make a biennial report to the Secretary of the Interior of activities undertaken under this subsection, including the number of contracts and cooperative agreements entered into, the number of children contacted and receiving services for each year, and the estimated number of children needing services during the 2 years following the year in which the report is made. The Secretary of the Interior shall include a summary of this information on a biennial basis to the Secretary of Education along with such other information as required under section 611(i)(3)(E). The Secretary of Education may require any additional information from the Secretary of the Interior.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Prohibited uses of funds</inline>.—</heading><content>None of the funds under this subsection may be used by the Secretary of the Interior for administrative purposes, including child count, and the provision of technical assistance.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">State Allotments</inline>.—<page identifier="/us/stat/111/120">111 STAT. 120</page></heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in paragraphs (2), (3), and (4), from the funds remaining for each fiscal year after the reservation and payments under subsections (a) and (b), the Secretary shall first allot to each State an amount that bears the same ratio to the amount of such remainder as the number of infants and toddlers in the State bears to the number of infants and toddlers in all States.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Minimum allotments</inline>.—</heading><chapeau>Except as provided in paragraphs (3) and (4), no State shall receive an amount under this section for any fiscal year that is less than the greatest of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>one-half of one percent of the remaining amount described in paragraph (1); or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>$500,000.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Special rule for 1998 and 1999</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Except as provided in paragraph (4), no State may receive an amount under this section for either fiscal year 1998 or 1999 that is less than the sum of the amounts such State received for fiscal year 1994 under—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>part H (as in effect for such fiscal year); and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>subpart 2 of part D of chapter 1 of title I of the Elementary and Secondary Education Act of 1965 (as in effect on the day before the date of the enactment of the Improving America’s Schools Act of 1994) for children with disabilities under 3 years of age.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Exception</inline>.—</heading><content>If, for fiscal year 1998 or 1999, the number of infants and toddlers in a State, as determined under paragraph (1), is less than the number of infants and toddlers so determined for fiscal year 1994, the amount determined under subparagraph (A) for the State shall be reduced by the same percentage by which the number of such infants and toddlers so declined.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Ratable reduction</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If the sums made available under this part for any fiscal year are insufficient to pay the full amounts that all States are eligible to receive under this subsection for such year, the Secretary shall ratably reduce the allotments to such States for such year.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Additional funds</inline>.—</heading><content>If additional funds become available for making payments under this subsection for a fiscal year, allotments that were reduced under subparagraph (A) shall be increased on the same basis they were reduced.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For the purpose of this subsection—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the terms ‘infants’ and ‘toddlers’ mean children under 3 years of age; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the term ‘State’ means each of the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico.</content></subparagraph> </paragraph> </subsection> <subparagraph class="indent2 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Reallotment of Funds</inline>.—</heading><content>If a State elects not to receive its allotment under subsection (c), the Secretary shall reallot, among the remaining States, amounts from such State in accordance with o such subsection.<page identifier="/us/stat/111/121">111 STAT. 121</page></content> </subparagraph> </section> <section> <num value="644">“SEC. 644.</num> <heading>FEDERAL INTERAGENCY COORDINATING COUNCIL.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1444">20 USC 1444</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Establishment and Purpose</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The Secretary shall establish a Federal Interagency Coordinating Council in order to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>minimize duplication of programs and activities across Federal, State, and local agencies, relating to—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>early intervention services for infants and toddlers with disabilities (including at-risk infants and toddlers) and their families; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>preschool or other appropriate services for children with disabilities;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>ensure the effective coordination of Federal early intervention and preschool programs and policies across Federal agencies;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>coordinate the provision of Federal technical assistance and support activities to States;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>identify gaps in Federal agency programs and services; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>identify barriers to Federal interagency cooperation.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Appointments</inline>.—</heading><content>The council established under paragraph (1) (hereafter in this section referred to as the ‘Council’) and the chairperson of the Council shall be appointed by the Secretary in consultation with other appropriate Federal agencies. In making the appointments, the Secretary shall ensure that each member has sufficient authority to engage in policy planning and implementation on behalf of the department, agency, or program that the member represents.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Composition</inline>.—</heading><chapeau>The Council shall be composed of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>a representative of the Office of Special Education Programs;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>a representative of the National Institute on Disability and Rehabilitation Research and a representative of the Office of Educational Research and Improvement;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>a representative of the Maternal and Child Health Services Block Grant Program;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>a representative of programs administered under the Developmental Disabilities Assistance and Bill of Rights Act;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>a representative of the Health Care Financing Administration;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>a representative of the Division of Birth Defects and Developmental Disabilities of the Centers for Disease Control;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <content>a representative of the Social Security Administration;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <content>a representative of the special supplemental nutrition program for women, infants, and children of the Department of Agriculture;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">“(9)</num> <content>a representative of the National Institute of Mental Health;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">“(10)</num> <content>a representative of the National Institute of Child Health and Human Development;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="11">“(11)</num> <content>a representative of the Bureau of Indian Affairs of the Department of the Interior;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="12">“(12)</num> <content>a representative of the Indian Health Service;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="13">“(13)</num> <content>a representative of the Surgeon General;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="14">“(14)</num> <content>a representative of the Department of Defense;<page identifier="/us/stat/111/122">111 STAT. 122</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="15">“(15)</num> <content>a representative of the Children’s Bureau, and a representative of the Head Start Bureau, of the Administration for Children and Families;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="16">“(16)</num> <content>a representative of the Substance Abuse and Mental Health Services Administration;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="17">“(17)</num> <content>a representative of the Pediatric AIDS Health Care Demonstration Program in the Public Health Service;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="18">“(18)</num> <content>parents of children with disabilities age 12 or under (who shall constitute at least 20 percent of the members of the Council), of whom at least one must have a child with a disability under the age of 6;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="19">“(19)</num> <content>at least two representatives of State lead agencies for early intervention services to infants and toddlers, one of whom must be a representative of a State educational agency and the other a representative of a non-educational agency;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="20">“(20)</num> <content>other members representing appropriate agencies involved in the provision of, or payment for, early intervention services and special education and related services to infants and toddlers with disabilities and their families and preschool children with disabilities; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="21">“(21)</num> <content>other persons appointed by the Secretary.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Meetings</inline>.—</heading><content>The Council shall meet at least quarterly and in such places as the Council deems necessary. The meetings shall be publicly announced, and, to the extent appropriate, open and accessible to the general public.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Functions of the Council</inline>.—</heading><chapeau>The Council shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>advise and assist the Secretary of Education, the Secretary of Health and Human Services, the Secretary of Defense, the Secretary of the Interior, the Secretary of Agriculture, and the Commissioner of Social Security in the performance of their responsibilities related to serving children from birth through age 5 who are eligible for services under this part or under part B;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>conduct policy analyses of Federal programs related to the provision of early intervention services and special educational and related services to infants and toddlers with disabilities and their families, and preschool children with disabilities, in order to determine areas of conflict, overlap, duplication, or inappropriate omission;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>identify strategies to address issues described in paragraph (2);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>develop and recommend joint policy memoranda concerning effective interagency collaboration, including modifications to regulations, and the elimination of barriers to interagency programs and activities;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>coordinate technical assistance and disseminate information on best practices, effective program coordination strategies, and recommendations for improved early intervention programming for infants and toddlers with disabilities and their families and preschool children with disabilities; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>facilitate activities in support of States’ interagency coordination efforts.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Conflict of Interest</inline>.—</heading><content>No member of the Council shall cast a vote on any matter that would provide direct financial benefit to that member or otherwise give the appearance of a conflict of interest under Federal law.<page identifier="/us/stat/111/123">111 STAT. 123</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Federal Advisory Committee Act</inline>.—</heading><content>The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the establishment or operation of the Council.</content> </subsection> </section> <section> <num value="645">“SEC. 645.</num> <heading>AUTHORIZATION OF APPROPRIATIONS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1445">20 USC 1445</ref>.</p></sidenote> <content>“For the purpose of carrying out this part, there are authorized to be appropriated $400,000,000 for fiscal year 1998 and such sums as may be necessary for each of the fiscal years 1999 through 2002.</content> </section> </part> <part> <num value="D">“PART D—</num><heading>NATIONAL ACTIVITIES TO IMPROVE EDUCATION OF CHILDREN WITH DISABILITIES</heading> <subpart> <num value="1">“Subpart 1—</num><heading>State Program Improvement Grants for Children with Disabilities</heading> <section> <num value="651">“SEC. 651.</num> <heading>FINDINGS AND PURPOSE.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1451">20 USC 1451</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>The Congress finds the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>States are responding with some success to multiple pressures to improve educational and transitional services and results for children with disabilities in response to growing demands imposed by ever-changing factors, such as demographics, social policies, and labor and economic markets.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>In order for States to address such demands and to facilitate lasting systemic change that is of benefit to all students, including children with disabilities, States must involve local educational agencies, parents, individuals with disabilities and their families, teachers and other service providers, and other interested individuals and organizations in carrying out comprehensive strategies to improve educational results for children with disabilities.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>Targeted Federal financial resources are needed to assist States, working in partnership with others, to identify and make needed changes to address the needs of children with disabilities into the next century.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>State educational agencies, in partnership with local educational agencies and other individuals and organizations, are in the best position to identify and design ways to meet emerging and expanding demands to improve education for children with disabilities and to address their special needs.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>Research, demonstration, and practice over the past 20 years in special education and related disciplines have built a foundation of knowledge on which State and local systemic-change activities can now be based.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <chapeau>Such research, demonstration, and practice in special education and related disciplines have demonstrated that an effective educational system now and in the future must—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>maintain high academic standards and clear performance goals for children with disabilities, consistent with the standards and expectations for all students in the educational system, and provide for appropriate and effective strategies and methods to ensure that students who are children with disabilities have maximum opportunities to achieve those standards and goals;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>create a system that fully addresses the needs of all students, including children with disabilities, by <page identifier="/us/stat/111/124">111 STAT. 124</page>addressing the needs of children with disabilities in carrying out educational reform activities;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>clearly define, in measurable terms, the school and post-school results that children with disabilities are expected to achieve;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>promote service integration, and the coordination of State and local education, social, health, mental health, and other services, in addressing the full range of student needs, particularly the needs of children with disabilities who require significant levels of support to maximize their participation and learning in school and the community;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>ensure that children with disabilities are provided assistance and support in making transitions as described in section 674(b)(3)(C);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>promote comprehensive programs of professional development to ensure that the persons responsible for the education or a transition of children with disabilities possess the skills and knowledge necessary to address the educational and related needs of those children;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <content>disseminate to teachers and other personnel serving children with disabilities research-based knowledge about successful teaching practices and models and provide technical assistance to local educational agencies and schools on how to improve results for children with disabilities;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num> <content>create school-based disciplinary strategies that will be used to reduce or eliminate the need to use suspension and expulsion as disciplinary options for children with disabilities;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="I">“(I)</num> <content>establish placement-neutral funding formulas and cost-effective strategies for meeting the needs of children with disabilities; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="J">“(J)</num> <content>involve individuals with disabilities and parents of children with disabilities in planning, implementing, and evaluating systemic-change activities and educational reforms.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Purpose</inline>.—</heading><content>The purpose of this subpart is to assist State educational agencies, and their partners referred to in section 652(b), in reforming and improving their systems for providing educational, early intervention, and transitional services, including their systems for professional development, technical assistance, and dissemination of knowledge about best practices, to improve results for children with disabilities.</content> </subsection> </section> <section> <num value="652">“SEC. 652.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1452">20 USC 1452</ref>.</p></sidenote> <heading>ELIGIBILITY AND COLLABORATIVE PROCESS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Eligible Applicants</inline>.—</heading><content>A State educational agency may apply for a grant under this subpart for a grant period of not less than 1 year and not more than 5 years.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Partners</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Required partners</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Contractual partners</inline>.—</heading><content>In order to be considered for a grant under this subpart, a State educational agency shall establish a partnership with local educational agencies and other State agencies involved in, or concerned with, the education of children with disabilities.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Other partners</inline>.—</heading><chapeau>In order to be considered for a grant under this subpart, a State educational agency <page identifier="/us/stat/111/125">111 STAT. 125</page>shall work in partnership with other persons and organizations involved in, and concerned with, the education of children with disabilities, including—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the Governor;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>parents of children with disabilities;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>parents of nondisabled children;</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>individuals with disabilities;</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>organizations representing individuals with disabilities and their parents, such as parent training and information centers;</content></clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <content>community-based and other nonprofit organizations involved in the education and employment of individuals with disabilities;</content></clause> <clause class="indent3 fontsize10"><num value="vii">“(vii)</num> <content>the lead State agency for part C;</content></clause> <clause class="indent3 fontsize10"><num value="viii">“(viii)</num> <content>general and special education teachers, and early intervention personnel;</content></clause> <clause class="indent3 fontsize10"><num value="ix">“(ix)</num> <content>the State advisory panel established under part C;</content></clause> <clause class="indent3 fontsize10"><num value="x">“(x)</num> <content>the State interagency coordinating council established under part C; and</content></clause> <clause class="indent3 fontsize10"><num value="xi">“(xi)</num> <content>institutions of higher education within the State.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Optional partners</inline>.—</heading><chapeau>A partnership under subparagraph (A) or (B) of paragraph (1) may also include—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>individuals knowledgeable about vocational education;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the State agency for higher education;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>the State vocational rehabilitation agency;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>public agencies with jurisdiction in the areas of health, mental health, social services, and juvenile justice; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>other individuals.</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="653">“SEC. 653.</num> <heading>APPLICATIONS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1453">20 USC 1453</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Submission</inline>.—</heading><content>A State educational agency that desires to receive a grant under this subpart shall submit to the Secretary an application at such time, in such manner, and including such information as the Secretary may require.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">State improvement plan</inline>.—</heading><chapeau>The application shall include a State improvement plan that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>is integrated, to the maximum extent possible, with State plans under the Elementary and Secondary Education Act of 1965 and the Rehabilitation Act of 1973, as appropriate; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>meets the requirements of this section.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Determining Child and Program Needs</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Each State improvement plan shall identify those critical aspects of early intervention, general education, and special education programs (including professional development, based on an assessment of State and local needs) that must be improved to enable children with disabilities to meet the goals established by the State under section 612(a)(16).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Required analyses</inline>.—</heading><chapeau>To meet the requirement of paragraph (1), the State improvement plan shall include at least—<page identifier="/us/stat/111/126">111 STAT. 126</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>an analysis of all information, reasonably available to the State educational agency, on the performance of children with disabilities in the State, including—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>their performance on State assessments and other performance indicators established for all children, including drop-out rates and graduation rates;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>their participation in postsecondary education and employment; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>how their performance on the assessments and indicators described in clause (i) compares to that of non-disabled children;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>an analysis of State and local needs for professional development for personnel to serve children with disabilities that includes, at a minimum—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the number of personnel providing special education and related services; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>relevant information on current and anticipated personnel vacancies and shortages (including the number of individuals described in clause (i) with temporary certification), and on the extent of certification or retraining necessary to eliminate such shortages, that is based, to the maximum extent possible, on existing assessments of personnel needs;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>an analysis of the major findings of the Secretary’s most recent reviews of State compliance, as they relate to improving results for children with disabilities; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>an analysis of other information, reasonably available to the State, on the effectiveness of the State’s systems of early intervention, special education, and general education in meeting the needs of children with disabilities.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Improvement Strategies</inline>.—</heading><chapeau>Each State improvement plan shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <chapeau>describe a partnership agreement that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>specifies—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the nature and extent of the partnership among the State educational agency, local educational agencies, and other State agencies involved in, or concerned with, the education of children with disabilities, and the respective roles of each member of the partnership; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>how such agencies will work in partnership with other persons and organizations involved in, and concerned with, the education of children with disabilities, including the respective roles of each of these persons and organizations; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>is in effect for the period of the grant;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>describe how grant funds will be used in undertaking the systemic-change activities, and the amount and nature of funds from any other sources, including part B funds retained for use at the State level under sections 611(f) and 619(d), that will be committed to the systemic-change activities;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <chapeau>describe the strategies the State will use to address the needs identified under subsection (b), including—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>how the State will change State policies and procedures to address systemic barriers to improving results for children with disabilities;<page identifier="/us/stat/111/127">111 STAT. 127</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>how the State will hold local educational agencies and schools accountable for educational progress of children with disabilities;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>how the State will provide technical assistance to local educational agencies and schools to improve results for children with disabilities;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <chapeau>how the State will address the identified needs for in-service and pre-service preparation to ensure that all personnel who work with children with disabilities (including both professional and paraprofessional personnel who provide special education, general education, related services, or early intervention services) have the skills and knowledge necessary to meet the needs of children with disabilities, including a description of how—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the State will prepare general and special education personnel with the content knowledge and collaborative skills needed to meet the needs of children with disabilities, including how the State will work with other States on common certification criteria;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the State will prepare professionals and paraprofessionals in the area of early intervention with the content knowledge and collaborative skills needed to meet the needs of infants and toddlers with disabilities;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>the State will work with institutions of higher education and other entities that (on both a pre-service and an in-service basis) prepare personnel who work with children with disabilities to ensure that those institutions and entities develop the capacity to support quality professional development programs that meet State and local needs;</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>the State will work to develop collaborative agreements with other States for the joint support and development of programs to prepare personnel for which there is not sufficient demand within a single State to justify support or development of such a program of preparation;</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>the State will work in collaboration with other States, particularly neighboring States, to address the lack of uniformity and reciprocity in the credentialing of teachers and other personnel;</content></clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <content>the State will enhance the ability of teachers and others to use strategies, such as behavioral interventions, to address the conduct of children with disabilities that impedes the learning of children with disabilities and others;</content></clause> <clause class="indent3 fontsize10"><num value="vii">“(vii)</num> <content>the State will acquire and disseminate, to teachers, administrators, school board members, and related services personnel, significant knowledge derived from educational research and other sources, and how the State will, when appropriate, adopt promising practices, materials, and technology;</content></clause> <clause class="indent3 fontsize10"><num value="viii">“(viii)</num> <content>the State will recruit, prepare, and retain qualified personnel, including personnel with disabilities and personnel from groups that are underrepresented in the fields of regular education, special education, and related services;<page identifier="/us/stat/111/128">111 STAT. 128</page></content></clause> <clause class="indent3 fontsize10"><num value="ix">“(ix)</num> <content>the plan is integrated, to the maximum extent possible, with other professional development plans and activities, including plans and activities developed and carried out under other Federal and State laws that address personnel recruitment and training; and</content></clause> <clause class="indent3 fontsize10"><num value="x">“(x)</num> <content>the State will provide for the joint training of parents and special education, related services, and general education personnel;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>strategies that will address systemic problems identified in Federal compliance reviews, including shortages of qualified personnel;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>how the State will disseminate results of the local capacity-building and improvement projects funded under section 611(f)(4);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <content>how the State will address improving results for children with disabilities in the geographic areas of greatest need; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num> <content>how the State will assess, on a regular basis, the extent to which the strategies implemented under this subpart have been effective; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>describe how the improvement strategies described in paragraph (3) will be coordinated with public and private sector resources.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Competitive Awards</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Grants.</p></sidenote> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall make grants under this subpart on a competitive basis.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Priority</inline>.—</heading><content>The Secretary may give priority to applications on the basis of need, as indicated by such information as the findings of Federal compliance reviews.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Peer Review</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall use a panel of experts who are competent, by virtue of their training, expertise, or experience, to evaluate applications under this subpart.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Composition of panel</inline>.—</heading><content>A majority of a panel described in paragraph (1) shall be composed of individuals who are not employees of the Federal Government.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Payment of fees and expenses of certain members</inline>.—</heading><content>The Secretary may use available funds appropriated to carry out this subpart to pay the expenses and fees of panel members who are not employees of the Federal Government.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Reporting Procedures</inline>.—</heading><content>Each State educational agency that receives a grant under this subpart shall submit performance reports to the Secretary pursuant to a schedule to be determined by the Secretary, but not more frequently than annually. The reports shall describe the progress of the State in meeting the performance goals established under section 612(a)(16), analyze the effectiveness of the State’s strategies in meeting those goals, and identify any changes in the strategies needed to improve its performance.</content> </subsection> </section> <section> <num value="654">“SEC. 654.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1454">20 USC 1454</ref>.</p></sidenote> <heading>USE OF FUNDS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Activities</inline>.—</heading><content>A State educational agency that receives a grant under this subpart may use the grant to carry out any activities that are described in the State’s application and that are consistent with the purpose of this subpart.<page identifier="/us/stat/111/129">111 STAT. 129</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Contracts and subgrants</inline>.—</heading><chapeau>Each such State educational agency—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>shall, consistent with its partnership agreement under section 652(b), award contracts or subgrants to local educational agencies, institutions of higher education, and parent training and information centers, as appropriate, to carry out its State improvement plan under this subpart; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>may award contracts and subgrants to other public and private entities, including the lead agency under part C, to carry out such plan.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Use of Funds for Professional Development</inline>.—</heading><chapeau>A State educational agency that receives a grant under this subpart—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <chapeau>shall use not less than 75 percent of the funds it receives under the grant for any fiscal year—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>to ensure that there are sufficient regular education, special education, and related services personnel who have the skills and knowledge necessary to meet the needs of children with disabilities and developmental goals of young children; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>to work with other States on common certification criteria; or</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>shall use not less than 50 percent of such funds for such purposes, if the State demonstrates to the Secretary’s satisfaction that it has the personnel described in paragraph (1)(A).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Grants to Outlying Areas</inline>.—</heading><content>Public Law 95–134, permitting the consolidation of grants to the outlying areas, shall not apply to funds received under this subpart.</content> </subsection> </section> <section> <num value="655">“SEC. 655.</num> <heading>MINIMUM STATE GRANT AMOUNTS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1455">20 USC 1455</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The Secretary shall make a grant to each State educational agency whose application the Secretary has selected for funding under this subpart in an amount for each fiscal year that is—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>not less than $500,000, nor more than $2,000,000, in the case of the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>not less than $80,000, in the case of an outlying area.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Inflation Adjustment</inline>.—</heading><content>Beginning with fiscal year 1999, the Secretary may increase the maximum amount described in subsection (a)(1) to account for inflation.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Factors</inline>.—</heading><chapeau>The Secretary shall set the amount of each grant under subsection (a) after considering—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the amount of funds available for making the grants;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the relative population of the State or outlying area; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>the types of activities proposed by the State or outlying area.</content></paragraph> </subsection> </section> <section> <num value="656">“SEC. 656.</num> <heading>AUTHORIZATION OF APPROPRIATIONS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1456">20 USC 1456</ref>.</p></sidenote> <content>“There are authorized to be appropriated to carry out this subpart such sums as may be necessary for each of the fiscal years 1998 through 2002.<page identifier="/us/stat/111/130">111 STAT. 130</page></content> </section> </subpart> <subpart> <num value="2">“Subpart 2—</num><heading>Coordinated Research, Personnel Preparation, Technical Assistance, Support, and Dissemination of Information</heading> <section> <num value="661">“SEC. 661.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1461">20 USC 1461</ref>.</p></sidenote> <heading>ADMINISTRATIVE PROVISIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Comprehensive Plan</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall develop and implement a comprehensive plan for activities carried out under this subpart in order to enhance the provision of educational, related, transitional, and early intervention services to children with disabilities under parts B and C. The plan shall include mechanisms to address educational, related services, transitional, and early intervention needs identified by State educational agencies in applications submitted for State program improvement grants under subpart 1.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Participants in plan development</inline>.—</heading><chapeau>In developing the plan described in paragraph (1), the Secretary shall consult with—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>individuals with disabilities;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>parents of children with disabilities;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>appropriate professionals; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>representatives of State and local educational agencies, private schools, institutions of higher education, other Federal agencies, the National Council on Disability, and national organizations with an interest in, and expertise in, providing services to children with disabilities and their families.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Public comment</inline>.—</heading><content>The Secretary shall take public comment on the plan.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Distribution of funds</inline>.—</heading><content>In implementing the plan, the Secretary shall, to the extent appropriate, ensure that funds are awarded to recipients under this subpart to carry out activities that benefit, directly or indirectly, children with disabilities of all ages.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Reports to congress</inline>.—</heading><content>The Secretary shall periodically report to the Congress on the Secretary’s activities under this subsection, including an initial report not later than the date that is 18 months after the date of the enactment of the Individuals with Disabilities Education Act Amendments of 1997.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Eligible Applicants</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Except as otherwise provided in this subpart, the following entities are eligible to apply for a grant, contract, or cooperative agreement under this subpart:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>A State educational agency.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>A local educational agency.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>An institution of higher education.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>Any other public agency.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>A private nonprofit organization.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>An outlying area.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <content>An Indian tribe or a tribal organization (as defined under section 4 of the Indian Self-Determination and Education Assistance Act).<page identifier="/us/stat/111/131">111 STAT. 131</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num> <content>A for-profit organization, if the Secretary finds it appropriate in light of the purposes of a particular competition for a grant, contract, or cooperative agreement under this subpart.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Special rule</inline>.—</heading><content>The Secretary may limit the entities eligible for an award of a grant, contract, or cooperative agreement to one or more categories of eligible entities described in paragraph (1).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Use of Funds by Secretary</inline>.—</heading><chapeau>Notwithstanding any other provision of law, and in addition to any authority granted the Secretary under chapter 1 or chapter 2, the Secretary may use up to 20 percent of the funds available under either chapter 1 or chapter 2 for any fiscal year to carry out any activity, or combination of activities, subject to such conditions as the Secretary determines are appropriate effectively to carry out the purposes of such chapters, that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>is consistent with the purposes of chapter 1, chapter 2, or both; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <chapeau>involves—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>research;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>personnel preparation;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>parent training and information;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>technical assistance and dissemination;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>technology development, demonstration, and utilization; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>media services.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Special Populations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Application requirement</inline>.—</heading><content>In making an award of a grant, contract, or cooperative agreement under this subpart, the Secretary shall, as appropriate, require an applicant to demonstrate how the applicant will address the needs of children with disabilities from minority backgrounds.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Outreach and technical assistance</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Requirement</inline>.—</heading><chapeau>Notwithstanding any other provision of this Act, the Secretary shall ensure that at least one percent of the total amount of funds appropriated to carry out this subpart is used for either or both of the following activities:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>To provide outreach and technical assistance to Historically Black Colleges and Universities, and to institutions of higher education with minority enrollments of at least 25 percent, to promote the participation of such colleges, universities, and institutions in activities under this subpart.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>To enable Historically Black Colleges and Universities, and the institutions described in clause (i), to assist other colleges, universities, institutions, and agencies in improving educational and transitional results for children with disabilities.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Reservation of funds</inline>.—</heading><content>The Secretary may reserve funds appropriated under this subpart to satisfy the requirement of subparagraph (A).</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Priorities</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Except as otherwise explicitly authorized in this subpart, the Secretary shall ensure that a grant, contract, or cooperative agreement under chapter 1 or 2 is awarded only—<page identifier="/us/stat/111/132">111 STAT. 132</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>for activities that are designed to benefit children with disabilities, their families, or the personnel employed to work with such children or their families; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>to benefit other individuals with disabilities that such chapter is intended to benefit.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Priority for particular activities</inline>.—</heading><chapeau>Subject to paragraph (1), the Secretary, in making an award of a grant, contract, or cooperative agreement under this subpart, may, without regard to the rule making procedures under section 553 of title 5, United States Code, limit competitions to, or otherwise give priority to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>projects that address one or more—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>age ranges;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>disabilities;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>school grades;</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>types of educational placements or early intervention environments;</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>types of services;</content></clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <content>content areas, such as reading; or</content></clause> <clause class="indent3 fontsize10"><num value="vii">“(vii)</num> <content>effective strategies for helping children with disabilities learn appropriate behavior in the school and other community-based educational settings;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>projects that address the needs of children based on the severity of their disability;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <chapeau>projects that address the needs of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>low-achieving students;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>underserved populations;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>children from low-income families;</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>children with limited English proficiency;</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>unserved and underserved areas;</content></clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <content>particular types of geographic areas; or</content></clause> <clause class="indent3 fontsize10"><num value="vii">“(vii)</num> <content>children whose behavior interferes with their learning and socialization;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>projects to reduce inappropriate identification of children as children with disabilities, particularly among minority children;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>projects that are carried out in particular areas of the country, to ensure broad geographic coverage; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>any activity that is expressly authorized in chapter 1 or 2.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Applicant and Recipient Responsibilities</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Development and assessment of projects</inline>.—</heading><chapeau>The Secretary shall require that an applicant for, and a recipient of, a grant, contract, or cooperative agreement for a project under this subpart—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>involve individuals with disabilities or parents of individuals with disabilities in planning, implementing, and evaluating the project; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>where appropriate, determine whether the project has any potential for replication and adoption by other entities.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Additional responsibilities</inline>.—</heading><chapeau>The Secretary may require a recipient of a grant, contract, or cooperative agreement for a project under this subpart—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>to share in the cost of the project;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>to prepare the research and evaluation findings and products from the project in formats that are useful <page identifier="/us/stat/111/133">111 STAT. 133</page>for specific audiences, including parents, administrators, teachers, early intervention personnel, related services personnel, and individuals with disabilities;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>to disseminate such findings and products; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>to collaborate with other such recipients in carrying out subparagraphs (B) and (C).</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Application Management</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Standing panel</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall establish and use a standing panel of experts who are competent, by virtue of their training, expertise, or experience, to evaluate applications under this subpart that, individually, request more than $75,000 per year in Federal financial assistance.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Membership</inline>.—</heading><chapeau>The standing panel shall include, at a minimum—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>individuals who are representatives of institutions of higher education that plan, develop, and carry out programs of personnel preparation;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>individuals who design and carry out programs of research targeted to the improvement of special education programs and services;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>individuals who have recognized experience and knowledge necessary to integrate and apply research findings to improve educational and transitional results for children with disabilities;</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>individuals who administer programs at the State or local level in which children with disabilities participate;</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>individuals who prepare parents of children with disabilities to participate in making decisions about the education of their children;</content></clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <content>individuals who establish policies that affect the delivery of services to children with disabilities;</content></clause> <clause class="indent3 fontsize10"><num value="vii">“(vii)</num> <content>individuals who are parents of children with disabilities who are benefiting, or have benefited, from coordinated research, personnel preparation, and technical assistance; and</content></clause> <clause class="indent3 fontsize10"><num value="viii">“(viii)</num> <content>individuals with disabilities.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Training</inline>.—</heading><content>The Secretary shall provide training to the individuals who are selected as members of the standing panel under this paragraph.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Term</inline>.—</heading><content>No individual shall serve on the standing panel for more than 3 consecutive years, unless the Secretary determines that the individual’s continued participation is necessary for the sound administration of this subpart.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Peer-review panels for particular competitions</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Composition</inline>.—</heading><chapeau>The Secretary shall ensure that each sub-panel selected from the standing panel that reviews applications under this subpart includes—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>individuals with knowledge and expertise on the issues addressed by the activities authorized by the subpart; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>to the extent practicable, parents of children with disabilities, individuals with disabilities, and persons from diverse backgrounds.<page identifier="/us/stat/111/134">111 STAT. 134</page></content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Federal employment limitation</inline>.—</heading><content>A majority of the individuals on each sub-panel that reviews an application under this subpart shall be individuals who are not employees of the Federal Government.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Use of discretionary funds for administrative purposes</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Expenses and fees of non-federal panel members</inline>.—</heading><content>The Secretary may use funds available under this subpart to pay the expenses and fees of the panel members who are not officers or employees of the Federal Government.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Administrative support</inline>.—</heading><content>The Secretary may use not more than 1 percent of the funds appropriated to carry out this subpart to pay non-Federal entities for administrative support related to management of applications submitted under this subpart.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Monitoring</inline>.—</heading><content>The Secretary may use funds available under this subpart to pay the expenses of Federal employees to conduct on-site monitoring of projects receiving $500,000 or more for any fiscal year under this subpart.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Program Evaluation</inline>.—</heading><content>The Secretary may use funds appropriated to carry out this subpart to evaluate activities carried out under the subpart.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="i">“(i)</num> <heading><inline class="smallCaps">Minimum Funding Required</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Subject to paragraph (2), the Secretary shall ensure that, for each fiscal year, at least the following amounts are provided under this subpart to address the following needs:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>$12,832,000 to address the educational, related services, transitional, and early intervention needs of children with deaf-blindness.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>$4,000,000 to address the postsecondary, vocational, technical, continuing, and adult education needs of individuals with deafness.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>$4,000,000 to address the educational, related services, and transitional needs of children with an emotional disturbance and those who are at risk of developing an emotional disturbance.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Ratable reduction</inline>.—</heading><content>If the total amount appropriated to carry out sections 672, 673, and 685 for any fiscal year is less than $130,000,000, the amounts listed in paragraph (1) shall be ratably reduced.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="j">“(j)</num> <heading><inline class="smallCaps">Eligibility for Financial Assistance</inline>.—</heading><content>Effective for fiscal years for which the Secretary may make grants under section 619(b), no State or local educational agency or educational service agency or other public institution or agency may receive a grant under this subpart which relates exclusively to programs, projects, and activities pertaining to children aged 3 through 5, inclusive, unless the State is eligible to receive a grant under section 619(b).<page identifier="/us/stat/111/135">111 STAT. 135</page></content> </subsection> </section> <chapter> <num value="1">“Chapter 1—</num><heading>Improving Early Intervention, Educational, and Transitional Services and Results for Children with Disabilities through Coordinated Research and Personnel Preparation</heading> <section> <num value="671">“SEC. 671.</num> <heading>FINDINGS AND PURPOSE.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1471">20 USC 1471</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>The Congress finds the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <chapeau>The Federal Government has an ongoing obligation to support programs, projects, and activities that contribute to positive results for children with disabilities, enabling them—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>to meet their early intervention, educational, and transitional goals and, to the maximum extent possible, educational standards that have been established for all children; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>to acquire the skills that will empower them to lead productive and independent adult lives.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num><subparagraph class="inline"><num value="A">(A)</num> <content>As a result of more than 20 years of Federal support for research, demonstration projects, and personnel preparation, there is an important knowledge base for improving results for children with disabilities.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B)</num> <content>Such knowledge should be used by States and local educational agencies to design and implement state-of-the-art educational systems that consider the needs of, and include, children with disabilities, especially in environments in which they can learn along with their peers and achieve results measured by the same standards as the results of their peers.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num><subparagraph class="inline"><num value="A">(A)</num> <content>Continued Federal support is essential for the development and maintenance of a coordinated and high-quality program of research, demonstration projects, dissemination of information, and personnel preparation.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B)</num> <chapeau>Such support—</chapeau> <clause class="indent2 fontsize10"><num value="i">“(i)</num> <content>enables State educational agencies and local educational agencies to improve their educational systems and results for children with disabilities;</content></clause> <clause class="indent2 fontsize10"><num value="ii">“(ii)</num> <content>enables State and local agencies to improve early intervention services and results for infants and toddlers with disabilities and their families; and</content></clause> <clause class="indent2 fontsize10"><num value="iii">“(iii)</num> <content>enhances the opportunities for general and special education personnel, related services personnel, parents, and paraprofessionals to participate in pre-service and inservice training, to collaborate, and to improve results for children with disabilities and their families.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <chapeau>The Federal Government plays a critical role in facilitating the availability of an adequate number of qualified personnel—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>to serve effectively the over 5,000,000 children with disabilities;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>to assume leadership positions in administrative and direct-service capacities related to teacher training and research concerning the provision of early intervention services, special education, and related services; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>to work with children with low-incidence disabilities and their families.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <chapeau>The Federal Government performs the role described in paragraph (4)—<page identifier="/us/stat/111/136">111 STAT. 136</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>by supporting models of personnel development that reflect successful practice, including strategies for recruiting, preparing, and retaining personnel;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>by promoting the coordination and integration of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>personnel-development activities for teachers of children with disabilities; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>other personnel-development activities supported under Federal law, including this chapter;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>by supporting the development and dissemination of information about teaching standards; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>by promoting the coordination and integration of personnel-development activities through linkage with systemic-change activities within States and nationally.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Purpose</inline>.—</heading><chapeau>The purpose of this chapter is to provide Federal funding for coordinated research, demonstration projects, outreach, and personnel-preparation activities that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>are described in sections 672 through 674;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>are linked with, and promote, systemic change; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>improve early intervention, educational, and transitional results for children with disabilities.</content></paragraph> </subsection> </section> <section> <num value="672">“SEC. 672.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1472">20 USC 1472</ref>.</p></sidenote> <heading>RESEARCH AND INNOVATION TO IMPROVE SERVICES AND RESULTS FOR CHILDREN WITH DISABILITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Grants.</p><p class="indent0 firstIndent0 fontsize8">Contracts.</p></sidenote> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>The Secretary shall make competitive grants to, or enter into contracts or cooperative agreements with, eligible entities to produce, and advance the use of, knowledge—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <chapeau>to improve—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>services provided under this Act, including the practices of professionals and others involved in providing such services to children with disabilities; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>educational results for children with disabilities;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>to address the special needs of preschool-aged children and infants and toddlers with disabilities, including infants and toddlers who would be at risk of having substantial developmental delays if early intervention services were not provided to them;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>to address the specific problems of over-identification and under-identification of children with disabilities;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>to develop and implement effective strategies for addressing inappropriate behavior of students with disabilities in schools, including strategies to prevent children with emotional and behavioral problems from developing emotional disturbances that require the provision of special education and related services;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>to improve secondary and postsecondary education and transitional services for children with disabilities; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>to address the range of special education, related services, and early intervention needs of children with disabilities who need significant levels of support to maximize their participation and learning in school and in the community.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">New Knowledge Production; Authorized Activities</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In carrying out this section, the Secretary shall support activities, consistent with the objectives described in subsection (a), that lead to the production of new knowledge.<page identifier="/us/stat/111/137">111 STAT. 137</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Authorized activities</inline>.—</heading><chapeau>Activities that may be carried out under this subsection include activities such as the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Expanding understanding of the relationships between learning characteristics of children with disabilities and the diverse ethnic, cultural, linguistic, social, and economic backgrounds of children with disabilities and their families.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>Developing or identifying innovative, effective, and efficient curricula designs, instructional approaches, and strategies, and developing or identifying positive academic and social learning opportunities, that—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>enable children with disabilities to make effective transitions described in section 674(b)(3)(C) or transitions between educational settings; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>improve educational and transitional results for children with disabilities at all levels of the educational system in which the activities are carried out and, in particular, that improve the progress of the children, as measured by assessments within the general education curriculum involved.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>Advancing the design of assessment tools and procedures that will accurately and efficiently determine the special instructional, learning, and behavioral needs of children with disabilities, especially within the context of general education.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>Studying and promoting improved alignment and compatibility of general and special education reforms concerned with curricular and instructional reform, evaluation and accountability of such reforms, and administrative procedures.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>Advancing the design, development, and integration of technology, assistive technology devices, media, and materials, to improve early intervention, educational, and transitional services and results for children with disabilities.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>Improving designs, processes, and results of personnel preparation for personnel who provide services to children with disabilities through the acquisition of information on, and implementation of, research-based practices.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <content>Advancing knowledge about the coordination of education with health and social services.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num> <content>Producing information on the long-term impact of early intervention and education on results for individuals with disabilities through large-scale longitudinal studies.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Integration of Research and Practice; Authorized Activities</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In carrying out this section, the Secretary shall support activities, consistent with the objectives described in subsection (a), that integrate research and practice, including activities that support State systemic-change and local capacity-building and improvement efforts.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Authorized activities</inline>.—</heading><chapeau>Activities that may be carried out under this subsection include activities such as the following:<page identifier="/us/stat/111/138">111 STAT. 138</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Model demonstration projects to apply and test research findings in typical service settings to determine the usability, effectiveness, and general applicability of such research findings in such areas as improving instructional methods, curricula, and tools, such as textbooks and media.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Demonstrating and applying research-based findings to facilitate systemic changes, related to the provision of services to children with disabilities, in policy, procedure, practice, and the training and use of personnel.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>Promoting and demonstrating the coordination of early intervention and educational services for children with disabilities with services provided by health, rehabilitation, and social service agencies.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>Identifying and disseminating solutions that over-come systemic barriers to the effective and efficient delivery of early intervention, educational, and transitional services to children with disabilities.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Improving the Use of Professional Knowledge; Authorized Activities</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In carrying out this section, the Secretary shall support activities, consistent with the objectives described in subsection (a), that improve the use of professional knowledge, including activities that support State systemic-change and local capacity-building and improvement efforts.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Authorized activities</inline>.—</heading><chapeau>Activities that may be carried out under this subsection include activities such as the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Synthesizing useful research and other information relating to the provision of services to children with disabilities, including effective practices.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Analyzing professional knowledge bases to advance an understanding of the relationships, and the effectiveness of practices, relating to the provision of services to children with disabilities.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>Ensuring that research and related products are in appropriate formats for distribution to teachers, parents, and individuals with disabilities.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>Enabling professionals, parents of children with disabilities, and other persons, to learn about, and implement, the findings of research, and successful practices developed in model demonstration projects, relating to the provision of services to children with disabilities.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>Conducting outreach, and disseminating information relating to successful approaches to overcoming systemic barriers to the effective and efficient delivery of early intervention, educational, and transitional services, to personnel who provide services to children with disabilities.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Balance Among Activities and Age Ranges</inline>.—</heading><chapeau>In carrying out this section, the Secretary shall ensure that there is an appropriate balance—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>among knowledge production, integration of research and practice, and use of professional knowledge; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>across all age ranges of children with disabilities.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Applications</inline>.—</heading><content>An eligible entity that wishes to receive a grant, or enter into a contract or cooperative agreement, under <page identifier="/us/stat/111/139">111 STAT. 139</page>this section shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Authorization of Appropriations</inline>.—</heading><content>There are authorized to be appropriated to carry out this section such sums as may be necessary for each of the fiscal years 1998 through 2002.</content> </subsection> </section> <section> <num value="673">“SEC. 673.</num> <heading>PERSONNEL PREPARATION TO IMPROVE SERVICES AND RESULTS FOR CHILDREN WITH DISABILITIES.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1473">20 USC 1473</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>The Secretary shall, on a competitive basis,<sidenote><p class="indent0 firstIndent0 fontsize8">Grants.</p><p class="indent0 firstIndent0 fontsize8">Contracts.</p></sidenote> make grants to, or enter into contracts or cooperative agreements with, eligible entities—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>to help address State-identified needs for qualified personnel in special education, related services, early intervention, and regular education, to work with children with disabilities; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>to ensure that those personnel have the skills and knowledge, derived from practices that have been determined, through research and experience, to be successful, that are needed to serve those children.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Low-Incidence Disabilities; Authorized Activities</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In carrying out this section, the Secretary shall support activities, consistent with the objectives described in subsection (a), that benefit children with low-incidence disabilities.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Authorized activities</inline>.—</heading><chapeau>Activities that may be carried out under this subsection include activities such as the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>Preparing persons who—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>have prior training in educational and other related service fields; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>are studying to obtain degrees, certificates, or licensure that will enable them to assist children with disabilities to achieve the objectives set out in their individualized education programs described in section 614(d), or to assist infants and toddlers with disabilities to achieve the outcomes described in their individualized family service plans described in section 636.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Providing personnel from various disciplines with interdisciplinary training that will contribute to improvement in early intervention, educational, and transitional results for children with disabilities.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>Preparing personnel in the innovative uses and application of technology to enhance learning by children with disabilities through early intervention, educational, and transitional services.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>Preparing personnel who provide services to visually impaired or blind children to teach and use Braille in the provision of services to such children.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>Preparing personnel to be qualified educational interpreters, to assist children with disabilities, particularly deaf and hard-of-hearing children in school and school- related activities and deaf and hard-of-hearing infants and toddlers and preschool children in early intervention and preschool programs.<page identifier="/us/stat/111/140">111 STAT. 140</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>Preparing personnel who provide services to children with significant cognitive disabilities and children with multiple disabilities.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Definition</inline>.—</heading><chapeau>As used in this section, the term ‘low-incidence disability’ means—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>a visual or hearing impairment, or simultaneous visual and hearing impairments;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>a significant cognitive impairment; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>any impairment for which a small number of personnel with highly specialized skills and knowledge are needed in order for children with that impairment to receive early intervention services or a free appropriate public education.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Selection of recipients</inline>.—</heading><content>In selecting recipients under this subsection, the Secretary may give preference to applications that propose to prepare personnel in more than one low-incidence disability, such as deafness and blindness.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Preparation in use of braille</inline>.—</heading><content>The Secretary shall ensure that all recipients of assistance under this subsection who will use that assistance to prepare personnel to provide services to visually impaired or blind children that can appropriately be provided in Braille will prepare those individuals to provide those services in Braille.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Leadership Preparation; Authorized Activities</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In carrying out this section, the Secretary shall support leadership preparation activities that are consistent with the objectives described in subsection (a).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Authorized activities</inline>.—</heading><chapeau>Activities that may be carried out under this subsection include activities such as the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Preparing personnel at the advanced graduate, doctoral, and postdoctoral levels of training to administer, enhance, or provide services for children with disabilities.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Providing interdisciplinary training for various types of leadership personnel, including teacher preparation faculty, administrators, researchers, supervisors, principals, and other persons whose work affects early intervention, educational, and transitional services for children with disabilities.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Projects of National Significance; Authorized Activities</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In carrying out this section, the Secretary shall support activities, consistent with the objectives described in subsection (a), that are of national significance and have broad applicability.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Authorized activities</inline>.—</heading><chapeau>Activities that may be carried out under this subsection include activities such as the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Developing and demonstrating effective and efficient practices for preparing personnel to provide services to children with disabilities, including practices that address any needs identified in the State’s improvement plan under part C;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Demonstrating the application of significant knowledge derived from research and other sources in the development of programs to prepare personnel to provide services to children with disabilities.<page identifier="/us/stat/111/141">111 STAT. 141</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <chapeau>Demonstrating models for the preparation of, and interdisciplinary training of, early intervention, special education, and general education personnel, to enable the personnel—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>to acquire the collaboration skills necessary to work within teams to assist children with disabilities; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>to achieve results that meet challenging standards, particularly within the general education curriculum.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>Demonstrating models that reduce shortages of teachers, and personnel from other relevant disciplines, who serve children with disabilities, through reciprocity arrangements between States that are related to licensure and certification.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>Developing, evaluating, and disseminating model teaching standards for persons working with children with disabilities.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>Promoting the transferability, across State and local jurisdictions, of licensure and certification of teachers and administrators working with such children.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <content>Developing and disseminating models that prepare teachers with strategies, including behavioral interventions, for addressing the conduct of children with disabilities that impedes their learning and that of others in the classroom.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num> <content>Institutes that provide professional development that addresses the needs of children with disabilities to teachers or teams of teachers, and where appropriate, to school board members, administrators, principals, pupil-service personnel, and other staff from individual schools.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="I">“(I)</num> <content>Projects to improve the ability of general education teachers, principals, and other administrators to meet the needs of children with disabilities.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="J">“(J)</num> <content>Developing, evaluating, and disseminating innovative models for the recruitment, induction, retention, and assessment of new, qualified teachers, especially from groups that are underrepresented in the teaching profession, including individuals with disabilities.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="K">“(K)</num> <content>Supporting institutions of higher education with minority enrollments of at least 25 percent for the purpose of preparing personnel to work with children with disabilities.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">High-Incidence Disabilities; Authorized Activities</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In carrying out this section, the Secretary shall support activities, consistent with the objectives described in subsection (a), to benefit children with high-incidence disabilities, such as children with specific learning disabilities, speech or language impairment, or mental retardation.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Authorized activities</inline>.—</heading><chapeau>Activities that may be carried out under this subsection include the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>Activities undertaken by institutions of higher education, local educational agencies, and other local entities—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <chapeau>to improve and reform their existing programs to prepare teachers and related services personnel—<page identifier="/us/stat/111/142">111 STAT. 142</page></chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>to meet the diverse needs of children with disabilities for early intervention, educational, and transitional services; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>to work collaboratively in regular classroom settings; and</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>to incorporate best practices and research-based knowledge about preparing personnel so they will have the knowledge and skills to improve educational results for children with disabilities.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Activities incorporating innovative strategies to recruit and prepare teachers and other personnel to meet the needs of areas in which there are acute and persistent shortages of personnel.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>Developing career opportunities for paraprofessionals to receive training as special education teachers, related services personnel, and early intervention personnel, including interdisciplinary training to enable them to improve early intervention, educational, and transitional results for children with disabilities.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Applications</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Any eligible entity that wishes to receive a grant, or enter into a contract or cooperative agreement, under this section shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Identified state needs</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Requirement to address identified needs</inline>.—</heading><content>Any application under subsection (b), (c), or (e) shall include information demonstrating to the satisfaction of the Secretary that the activities described in the application will address needs identified by the State or States the applicant proposes to serve.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Cooperation with state educational agencies</inline>.—</heading><content>Any applicant that is not a local educational agency or a State educational agency shall include information demonstrating to the satisfaction of the Secretary that the applicant and one or more State educational agencies have engaged in a cooperative effort to plan the project to which the application pertains, and will cooperate in carrying out and monitoring the project.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Acceptance by states of personnel preparation requirements</inline>.—</heading><chapeau>The Secretary may require applicants to provide letters from one or more States stating that the States—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>intend to accept successful completion of the proposed personnel preparation program as meeting State personnel standards for serving children with disabilities or serving infants and toddlers with disabilities; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>need personnel in the area or areas in which the applicant proposes to provide preparation, as identified in the States’ comprehensive systems of personnel development under parts B and C.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Selection of Recipients</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Impact of project</inline>.—</heading><content>In selecting recipients under this section, the Secretary may consider the impact of the project proposed in the application in meeting the need for personnel identified by the States.<page identifier="/us/stat/111/143">111 STAT. 143</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Requirement on applicants to meet state and professional standards</inline>.—</heading><content>The Secretary shall make grants<sidenote><p class="indent0 firstIndent0 fontsize8">Grants.</p></sidenote> under this section only to eligible applicants that meet State and professionally-recognized standards for the preparation of special education and related services personnel, if the purpose of the project is to assist personnel in obtaining degrees.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Preferences</inline>.—</heading><chapeau>In selecting recipients under this section, the Secretary may—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>give preference to institutions of higher education that are educating regular education personnel to meet the needs of children with disabilities in integrated settings and educating special education personnel to work in collaboration with regular educators in integrated settings; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>give preference to institutions of higher education that are successfully recruiting and preparing individuals with disabilities and individuals from groups that are underrepresented in the profession for which they are preparing individuals.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Service Obligation</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Each application for funds under subsections (b) and (e), and to the extent appropriate subsection (d), shall include an assurance that the applicant will ensure that individuals who receive a scholarship under the proposed project will subsequently provide special education and related services to children with disabilities for a period of 2 years for every year for which assistance was received or repay all or part of the cost of that assistance, in accordance with regulations issued by the Secretary.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Leadership preparation</inline>.—</heading><content>Each application for funds under subsection (c) shall include an assurance that the applicant will ensure that individuals who receive a scholarship under the proposed project will subsequently perform work related to their preparation for a period of 2 years for every year for which assistance was received or repay all or part of such costs, in accordance with regulations issued by the Secretary.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="i">“(i)</num> <heading><inline class="smallCaps">Scholarships</inline>.—</heading><content>The Secretary may include funds for scholarships, with necessary stipends and allowances, in awards under subsections (b), (c), (d), and (e).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="j">“(j)</num> <heading><inline class="smallCaps">Authorization of Appropriations</inline>.—</heading><content>There are authorized to be appropriated to carry out this section such sums as may be necessary for each of the fiscal years 1998 through 2002.</content> </subsection> </section> <section> <num value="674">“SEC. 674.</num> <heading>STUDIES AND EVALUATIONS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1474">20 USC 1474</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Studies and Evaluations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The Secretary shall, directly or through<sidenote><p class="indent0 firstIndent0 fontsize8">Grants.</p><p class="indent0 firstIndent0 fontsize8">Contracts.</p></sidenote> grants, contracts, or cooperative agreements, assess the progress in the implementation of this Act, including the effectiveness of State and local efforts to provide—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>a free appropriate public education to children with disabilities; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>early intervention services to infants and toddlers with disabilities and infants and toddlers who would be at risk of having substantial developmental delays if early intervention services were not provided to them.<page identifier="/us/stat/111/144">111 STAT. 144</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Authorized activities</inline>.—</heading><chapeau>In carrying out this subsection, the Secretary may support studies, evaluations, and assessments, including studies that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>analyze measurable impact, outcomes, and results achieved by State educational agencies and local educational agencies through their activities to reform policies, procedures, and practices designed to improve educational and transitional services and results for children with disabilities;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>analyze State and local needs for professional development, parent training, and other appropriate activities that can reduce the need for disciplinary actions involving children with disabilities;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <chapeau>assess educational and transitional services and results for children with disabilities from minority back-grounds, including—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <chapeau>data on—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the number of minority children who are referred for special education evaluation;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the number of minority children who are receiving special education and related services and their educational or other service placement; and</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>the number of minority children who graduated from secondary and postsecondary education programs; and</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the performance of children with disabilities from minority backgrounds on State assessments and other performance indicators established for all students;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <chapeau>measure educational and transitional services and results of children with disabilities under this Act, including longitudinal studies that—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>examine educational and transitional services and results for children with disabilities who are 3 through 17 years of age and are receiving special education and related services under this Act, using a national, representative sample of distinct age cohorts and disability categories; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>examine educational results, postsecondary placement, and employment status of individuals with disabilities, 18 through 21 years of age, who are receiving or have received special education and related services under this Act; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>identify and report on the placement of children with disabilities by disability category.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">National Assessment</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The Secretary shall carry out a national assessment of activities carried out with Federal funds under this Act in order—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>to determine the effectiveness of this Act in achieving its purposes;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>to provide information to the President, the Congress, the States, local educational agencies, and the public on how to implement the Act more effectively; and<page identifier="/us/stat/111/145">111 STAT. 145</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>to provide the President and the Congress with information that will be useful in developing legislation to achieve the purposes of this Act more effectively.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Consultation</inline>.—</heading><content>The Secretary shall plan, review, and conduct the national assessment under this subsection in consultation with researchers, State practitioners, local practitioners, parents of children with disabilities, individuals with disabilities, and other appropriate individuals.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Scope of assessment</inline>.—</heading><chapeau>The national assessment shall examine how well schools, local educational agencies, States, other recipients of assistance under this Act, and the Secretary are achieving the purposes of this Act, including—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>improving the performance of children with disabilities in general scholastic activities and assessments as compared to nondisabled children;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>providing for the participation of children with disabilities in the general curriculum;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <chapeau>helping children with disabilities make successful transitions from—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>early intervention services to preschool education;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>preschool education to elementary school; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>secondary school to adult life;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>placing and serving children with disabilities, including minority children, in the least restrictive environment appropriate;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>preventing children with disabilities, especially children with emotional disturbances and specific learning disabilities, from dropping out of school;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>addressing behavioral problems of children with disabilities as compared to nondisabled children;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <content>coordinating services provided under this Act with each other, with other educational and pupil services (including preschool services), and with health and social services funded from other sources;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num> <content>providing for the participation of parents of children with disabilities in the education of their children; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="I">“(I)</num> <content>resolving disagreements between education personnel and parents through activities such as mediation.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Interim and final reports</inline>.—</heading><chapeau>The Secretary shall submit to the President and the Congress—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>an interim report that summarizes the preliminary findings of the assessment not later than October 1, 1999; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>a final report of the findings of the assessment not later than October 1, 2001.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Annual Report</inline>.—</heading><chapeau>The Secretary shall report annually to the Congress on—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>an analysis and summary of the data reported by the States and the Secretary of the Interior under section 618;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the results of activities conducted under subsection (a);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>the findings and determinations resulting from reviews of State implementation of this Act.<page identifier="/us/stat/111/146">111 STAT. 146</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Grants.</p><p class="indent0 firstIndent0 fontsize8">Contracts.</p></sidenote> <heading><inline class="smallCaps">Technical Assistance to LEAS</inline>.—</heading><content>The Secretary shall provide directly, or through grants, contracts, or cooperative agreements, technical assistance to local educational agencies to assist them in carrying out local capacity-building and improvement projects under section 611(f)(4) and other LEA systemic improvement activities under this Act.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Reservation for Studies and Technical Assistance</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in paragraph (2) and notwithstanding any other provision of this Act, the Secretary may reserve up to one-half of one percent of the amount appropriated under parts B and C for each fiscal year to carry out this section.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Maximum amount</inline>.—</heading><content>For the first fiscal year in which the amount described in paragraph (1) is at least $20,000,000, the maximum amount the Secretary may reserve under paragraph (1) is $20,000,000. For each subsequent fiscal year, the maximum amount the Secretary may reserve under paragraph (1) is $20,000,000, increased by the cumulative rate of inflation since the fiscal year described in the previous sentence.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Use of maximum amount</inline>.—</heading><content>In any fiscal year described in paragraph (2) for which the Secretary reserves the maximum amount described in that paragraph, the Secretary shall use at least half of the reserved amount for activities under subsection (d).</content></paragraph> </subsection> </section> </chapter> <chapter> <num value="2">“Chapter 2—</num><heading>Improving Early Intervention, Educational, and Transitional Services and Results for Children With Disabilities Through Coordinated Technical Assistance, Support, and Dissemination of Information</heading> <section> <num value="681">“SEC. 681.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1481">20 USC 1481</ref>.</p></sidenote> <heading>FINDINGS AND PURPOSES.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau class="inline">The Congress finds as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>National technical assistance, support, and dissemination activities are necessary to ensure that parts B and C are fully implemented and achieve quality early intervention, educational, and transitional results for children with disabilities and their families.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>Parents, teachers, administrators, and related services personnel need technical assistance and information in a timely, coordinated, and accessible manner in order to improve early intervention, educational, and transitional services and results at the State and local levels for children with disabilities and their families.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <chapeau>Parent training and information activities have taken on increased importance in efforts to assist parents of a child with a disability in dealing with the multiple pressures of rearing such a child and are of particular importance in—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>ensuring the involvement of such parents in planning and decisionmaking with respect to early intervention, educational, and transitional services;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>achieving quality early intervention, educational, and transitional results for children with disabilities;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>providing such parents information on their rights and protections under this Act to ensure improved early <page identifier="/us/stat/111/147">111 STAT. 147</page>intervention, educational, and transitional results for children with disabilities;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>assisting such parents in the development of skills to participate effectively in the education and development of their children and in the transitions described in section 674(b)(3)(C); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>supporting the roles of such parents as participants within partnerships seeking to improve early intervention, educational, and transitional services and results for children with disabilities and their families.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>Providers of parent training and information activities need to ensure that such parents who have limited access to services and supports, due to economic, cultural, or linguistic barriers, are provided with access to appropriate parent training and information activities.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>Parents of children with disabilities need information that helps the parents to understand the rights and responsibilities of their children under part B.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <chapeau>The provision of coordinated technical assistance and dissemination of information to State and local agencies, institutions of higher education, and other providers of services to children with disabilities is essential in—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>supporting the process of achieving systemic change;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>supporting actions in areas of priority specific to the improvement of early intervention, educational, and transitional results for children with disabilities;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <chapeau>conveying information and assistance that are—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>based on current research (as of the date the information and assistance are conveyed);</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>accessible and meaningful for use in supporting systemic-change activities of State and local partnerships; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>linked directly to improving early intervention, educational, and transitional services and results for children with disabilities and their families; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <chapeau>organizing systems and information networks for such information, based on modern technology related to—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>storing and gaining access to information; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>distributing information in a systematic manner to parents, students, professionals, and policymakers.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <content>Federal support for carrying out technology research, technology development, and educational media services and activities has resulted in major innovations that have significantly improved early intervention, educational, and transitional services and results for children with disabilities and their families.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <chapeau>Such Federal support is needed—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>to stimulate the development of software, interactive learning tools, and devices to address early intervention, educational, and transitional needs of children with disabilities who have certain disabilities;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>to make information available on technology research, technology development, and educational media <page identifier="/us/stat/111/148">111 STAT. 148</page>services and activities to individuals involved in the provision of early intervention, educational, and transitional services to children with disabilities;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>to promote the integration of technology into curricula to improve early intervention, educational, and transitional results for children with disabilities;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>to provide incentives for the development of technology and media devices and tools that are not readily found or available because of the small size of potential markets;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>to make resources available to pay for such devices and tools and educational media services and activities;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <chapeau>to promote the training of personnel—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>to provide such devices, tools, services, and activities in a competent manner; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>to assist children with disabilities and their families in using such devices, tools, services, and activities; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <chapeau>to coordinate the provision of such devices, tools, services, and activities—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>among State human services programs; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>between such programs and private agencies.</content></clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Purposes</inline>.—</heading><chapeau>The purposes of this chapter are to ensure that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>children with disabilities, and their parents, receive training and information on their rights and protections under this Act, in order to develop the skills necessary to effectively participate in planning and decisionmaking relating to early intervention, educational, and transitional services and in systemic-change activities;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>parents, teachers, administrators, early intervention personnel, related services personnel, and transition personnel receive coordinated and accessible technical assistance and information to assist such persons, through systemic-change activities and other efforts, to improve early intervention, educational, and transitional services and results for children with disabilities and their families;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>appropriate technology and media are researched, developed, demonstrated, and made available in timely and accessible formats to parents, teachers, and all types of personnel providing services to children with disabilities to support their roles as partners in the improvement and implementation of early intervention, educational, and transitional services and results for children with disabilities and their families;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>on reaching the age of majority under State law, children with disabilities understand their rights and responsibilities under part B, if the State provides for the transfer of parental rights under section 615(m); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <chapeau>the general welfare of deaf and hard-of-hearing individuals is promoted by—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>bringing to such individuals understanding and appreciation of the films and television programs that play an important part in the general and cultural advancement of hearing individuals;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>providing, through those films and television programs, enriched educational and cultural experiences <page identifier="/us/stat/111/149">111 STAT. 149</page>through which deaf and hard-of-hearing individuals can better understand the realities of their environment; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>providing wholesome and rewarding experiences that deaf and hard-of-hearing individuals may share.</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="682">“SEC. 682.</num> <heading>PARENT TRAINING AND INFORMATION CENTERS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1482">20 USC 1482</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Program Authorized</inline>.—</heading><content>The Secretary may make grants to, and enter into contracts and cooperative agreements with, parent organizations to support parent training and information centers to carry out activities under this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Required Activities</inline>.—</heading><chapeau>Each parent training and information center that receives assistance under this section shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>provide training and information that meets the training and information needs of parents of children with disabilities living in the area served by the center, particularly underserved parents and parents of children who may be inappropriately identified;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>assist parents to understand the availability of, and how to effectively use, procedural safeguards under this Act, including encouraging the use, and explaining the benefits, of alternative methods of dispute resolution, such as the mediation process described in section 615(e);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>serve the parents of infants, toddlers, and children with the full range of disabilities;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <chapeau>assist parents to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>better understand the nature of their children’s disabilities and their educational and developmental needs;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>communicate effectively with personnel responsible for providing special education, early intervention, and related services;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>participate in decisionmaking processes and the development of individualized education programs under part B and individualized family service plans under part C;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>obtain appropriate information about the range of options, programs, services, and resources available to assist children with disabilities and their families;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>understand the provisions of this Act for the education of, and the provision of early intervention services to, children with disabilities, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>participate in school reform activities;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>in States where the State elects to contract with the parent training and information center, contract with State educational agencies to provide, consistent with subparagraphs (B) and (D) of section 615(e)(2), individuals who meet with parents to explain the mediation process to them;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>network with appropriate clearinghouses, including organizations conducting national dissemination activities under section 685(d), and with other national, State, and local organizations and agencies, such as protection and advocacy agencies, that serve parents and families of children with the full range of disabilities; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <chapeau>annually report to the Secretary on—</chapeau><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the number of parents to whom it provided information and training in the most recently concluded fiscal year; and<page identifier="/us/stat/111/150">111 STAT. 150</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the effectiveness of strategies used to reach and serve parents, including underserved parents of children with disabilities.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Optional Activities</inline>.—</heading><chapeau>A parent training and information center that receives assistance under this section may—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>provide information to teachers and other professionals who provide special education and related services to children with disabilities;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>assist students with disabilities to understand their rights and responsibilities under section 615(m) on reaching the age of majority; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>assist parents of children with disabilities to be informed participants in the development and implementation of the State’s State improvement plan under subpart 1.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Application Requirements</inline>.—</heading><chapeau>Each application for assistance under this section shall identify with specificity the special efforts that the applicant will undertake—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>to ensure that the needs for training and information of underserved parents of children with disabilities in the area to be served are effectively met; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>to work with community-based organizations.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Distribution of Funds</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall make at least 1 award to a parent organization in each State, unless the Secretary does not receive an application from such an organization in each State of sufficient quality to warrant approval.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Selection requirement</inline>.—</heading><content>The Secretary shall select among applications submitted by parent organizations in a State in a manner that ensures the most effective assistance to parents, including parents in urban and rural areas, in the State.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Quarterly Review</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Requirements</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Meetings</inline>.—</heading><content>The board of directors or special governing committee of each organization that receives an award under this section shall meet at least once in each calendar quarter to review the activities for which the award was made.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Advising board</inline>.—</heading><content>Each special governing committee shall directly advise the organization’s governing board of its views and recommendations.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Continuation award</inline>.—</heading><content>When an organization requests a continuation award under this section, the board of directors or special governing committee shall submit to the Secretary a written review of the parent training and information program conducted by the organization during the preceding fiscal year.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Definition of Parent Organization</inline>.—</heading><chapeau>As used in this section, the term ‘parent organization’ means a private nonprofit organization (other than an institution of higher education) that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <chapeau>has a board of directors—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the majority of whom are parents of children with disabilities;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>that includes—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>individuals working in the fields of special education, related services, and early intervention; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>individuals with disabilities; and<page identifier="/us/stat/111/151">111 STAT. 151</page></content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>the parent and professional members of which are broadly representative of the population to be served; or</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <chapeau>has—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>a membership that represents the interests of individuals with disabilities and has established a special governing committee that meets the requirements of paragraph (1); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>a memorandum of understanding between the special governing committee and the board of directors of the organization that clearly outlines the relationship between the board and the committee and the decisionmaking responsibilities and authority of each.</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="683">“SEC. 683.</num> <heading>COMMUNITY PARENT RESOURCE CENTERS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1483">20 USC 1483</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>The Secretary may make grants to, and enter into contracts and cooperative agreements with, local parent organizations to support parent training and information centers that will help ensure that underserved parents of children with disabilities, including low-income parents, parents of children with limited English proficiency, and parents with disabilities, have the training and information they need to enable them to participate effectively in helping their children with disabilities—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>to meet developmental goals and, to the maximum extent possible, those challenging standards that have been established for all children; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>to be prepared to lead productive independent adult lives, to the maximum extent possible.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Required Activities</inline>.—</heading><chapeau>Each parent training and information center assisted under this section shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>provide training and information that meets the training and information needs of parents of children with disabilities proposed to be served by the grant, contract, or cooperative agreement;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>carry out the activities required of parent training and information centers under paragraphs (2) through (7) of section 682(b);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>establish cooperative partnerships with the parent training and information centers funded under section 682; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>be designed to meet the specific needs of families who experience significant isolation from available sources of information and support.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Definition</inline>.—</heading><chapeau>As used is this section, the term ‘local parent organization’ means a parent organization, as defined in section 682(g), that either—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>has a board of directors the majority of whom are from the community to be served; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <chapeau>has—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>as a part of its mission, serving the interests of individuals with disabilities from such community; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>a special governing committee to administer the grant, contract, or cooperative agreement, a majority of the members of which are individuals from such community.<page identifier="/us/stat/111/152">111 STAT. 152</page></content></subparagraph> </paragraph> </subsection> </section> <section> <num value="684">“SEC. 684.</num> <heading>TECHNICAL ASSISTANCE FOR PARENT TRAINING AND INFORMATION CENTERS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>The Secretary may, directly or through awards to eligible entities, provide technical assistance for developing, assisting, and coordinating parent training and information programs carried out by parent training and information centers receiving assistance under sections 682 and 683.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Authorized Activities</inline>.—</heading><chapeau>The Secretary may provide technical assistance to a parent training and information center under this section in areas such as—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>effective coordination of parent training efforts;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>dissemination of information;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>evaluation by the center of itself;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>promotion of the use of technology, including assistive technology devices and assistive technology services;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>reaching underserved populations;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>including children with disabilities in general education programs;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <chapeau>facilitation of transitions from—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>early intervention services to preschool;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>preschool to school; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>secondary school to postsecondary environments; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <content>promotion of alternative methods of dispute resolution.</content></paragraph> </subsection> </section> <section> <num value="685">“SEC. 685.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1485">20 USC 1485</ref>.</p></sidenote> <heading>COORDINATED TECHNICAL ASSISTANCE AND DISSEMINATION.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>The Secretary shall, by competitively making grants or entering into contracts and cooperative agreements with eligible entities, provide technical assistance and information, through such mechanisms as institutes, Regional Resource Centers, clearinghouses, and programs that support States and local entities in building capacity, to improve early intervention, educational, and transitional services and results for children with disabilities and their families, and address systemic-change goals and priorities.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Systemic Technical Assistance; Authorized Activities</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In carrying out this section, the Secretary shall carry out or support technical assistance activities, consistent with the objectives described in subsection (a), relating to systemic change.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Authorized activities</inline>.—</heading><chapeau>Activities that may be carried out under this subsection include activities such as the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Assisting States, local educational agencies, and other participants in partnerships established under subpart 1 with the process of planning systemic changes that will promote improved early intervention, educational, and transitional results for children with disabilities.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Promoting change through a multistate or regional framework that benefits States, local educational agencies, and other participants in partnerships that are in the process of achieving systemic-change outcomes.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>Increasing the depth and utility of information in ongoing and emerging areas of priority need identified by States, local educational agencies, and other participants <page identifier="/us/stat/111/153">111 STAT. 153</page>in partnerships that are in the process of achieving systemic-change outcomes.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <chapeau>Promoting communication and information exchange among States, local educational agencies, and other participants in partnerships, based on the needs and concerns identified by the participants in the partnerships, rather than on externally imposed criteria or topics, regarding—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the practices, procedures, and policies of the States, local educational agencies, and other participants in partnerships; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>accountability of the States, local educational agencies, and other participants in partnerships for improved early intervention, educational, and transitional results for children with disabilities.</content></clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Specialized Technical Assistance; Authorized Activities</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In carrying out this section, the Secretary shall carry out or support activities, consistent with the objectives described in subsection (a), relating to areas of priority or specific populations.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Authorized activities</inline>.—</heading><chapeau>Examples of activities that may be carried out under this subsection include activities that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>focus on specific areas of high-priority need that—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>are identified by States, local educational agencies, and other participants in partnerships;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>require the development of new knowledge, or the analysis and synthesis of substantial bodies of information not readily available to the States, agencies, and other participants in partnerships; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>will contribute significantly to the improvement of early intervention, educational, and transitional services and results for children with disabilities and their families;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>focus on needs and issues that are specific to a population of children with disabilities, such as the provision of single-State and multi-State technical assistance and in-service training—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>to schools and agencies serving deaf-blind children and their families; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>to programs and agencies serving other groups of children with low-incidence disabilities and their families; or</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>address the postsecondary education needs of individuals who are deaf or hard-of-hearing.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">National Information Dissemination; Authorized Activities</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In carrying out this section, the Secretary shall carry out or support information dissemination activities that are consistent with the objectives described in subsection (a), including activities that address national needs for the preparation and dissemination of information relating to eliminating barriers to systemic-change and improving early intervention, educational, and transitional results for children with disabilities.<page identifier="/us/stat/111/154">111 STAT. 154</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Authorized activities</inline>.—</heading><chapeau>Examples of activities that may be carried out under this subsection include activities relating to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>infants and toddlers with disabilities and their families, and children with disabilities and their families:</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>services for populations of children with low-incidence disabilities, including deaf-blind children, and targeted age groupings;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>the provision of postsecondary services to individuals with disabilities,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>the need for and use of personnel to provide services to children with disabilities, and personnel recruitment, retention, and preparation;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>issues that are of critical interest to State educational agencies and local educational agencies, other agency personnel, parents of children with disabilities, and individuals with disabilities;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>educational reform and systemic change within States, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <content>promoting schools that are safe and conducive to learning</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Linking states to information sources</inline>.—</heading><content>In carrying out this subsection, the Secretary may support projects that link States to technical assistance resources, including special education and general education resources, and may make research and related products available through libraries, electronic networks, parent training projects, and other information sources.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Applications</inline>.—</heading><content>An eligible entity that wishes to receive a grant, or enter into a contract or cooperative agreement, under this section shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require.</content> </subsection> </section> <section> <num value="686">“SEC. 686.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1486">20 USC 1486</ref>.</p></sidenote> <heading>AUTHORIZATION OF APPROPRIATIONS.</heading> <content>“There are authorized to be appropriated to carry out sections 681 through 685 such sums as may be necessary for each of the fiscal years 1998 through 2002.</content> </section> <section> <num value="687">“SEC. 687.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1487">20 USC 1487</ref>.</p></sidenote> <heading>TECHNOLOGY DEVELOPMENT. DEMONSTRATION. AND UTILIZATION: AND MEDIA SERVICES.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Grants.</p><p class="indent0 firstIndent0 fontsize8">Contracts.</p></sidenote> <heading><inline class="smallCaps">In General</inline>.—</heading><content>The Secretary shall competitively make grants to, and enter into contracts and cooperative agreements with, eligible entities to support activities described in subsections (b) and (c).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Technology Development, Demonstration, and Utilization; Authorized Activities</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In carrying out this section, the Secretary shall support activities to promote the development, demonstration, and utilization of technology.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Authorized activities</inline>.—</heading><chapeau>Activities that may be carried out under this subsection include activities such as the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Conducting research and development activities on the use of innovative and emerging technologies for children with disabilities.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Promoting the demonstration and use of innovative and emerging technologies for children with disabilities <page identifier="/us/stat/111/155">111 STAT. 155</page>by improving and expanding the transfer of technology from research and development to practice.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>Providing technical assistance to recipients of other assistance under this section, concerning the development of accessible, effective, and usable products.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>Communicating information on available technology and the uses of such technology to assist children with disabilities.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>Supporting the implementation of research programs on captioning or video description.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>Supporting research, development, and dissemination of technology with universal-design features, so that the technology is accessible to individuals with disabilities without further modification or adaptation.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <content>Demonstrating the use of publicly-funded telecommunications systems to provide parents and teachers with information and training concerning early diagnosis of, intervention for, and effective teaching strategies for, young children with reading disabilities.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Educational Media Services; Authorized Activities</inline>.—</heading><chapeau>In carrying out this section, the Secretary shall support—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>educational media activities that are designed to be of educational value to children with disabilities;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>providing video description, open captioning, or closed captioning of television programs, videos, or educational materials through September 30, 2001; and after fiscal year 2001, providing video description, open captioning, or closed captioning of educational, news, and informational television, videos, or materials;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>distributing captioned and described videos or educational materials through such mechanisms as a loan service;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>providing free educational materials, including textbooks, in accessible media for visually impaired and printdisabled students in elementary, secondary, postsecondary, and graduate schools;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <chapeau>providing cultural experiences through appropriate nonprofit organizations, such as the National Theater of the Deaf, that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>enrich the lives of deaf and hard-of-hearing children and adults;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>increase public awareness and understanding of deafness and of the artistic and intellectual achievements of deaf and hard-of-hearing persons; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>promote the integration of hearing, deaf, and hard-of-hearing persons through shared cultural, educational, and social experiences; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>compiling and analyzing appropriate data relating to the activities described in paragraphs (1) through (5).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Applications</inline>.—</heading><content>Any eligible entity that wishes to receive a grant, or enter into a contract or cooperative agreement, under this section shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Authorization of Appropriations</inline>.—</heading><content>There are authorized to be appropriated to carry out this section such sums as may be necessary for each of the fiscal years 1998 through 2002.”.<page identifier="/us/stat/111/156">111 STAT. 156</page></content> </subsection> </section> </chapter> </subpart> </part> </quotedContent> </content></section> <num value="II">TITLE II—</num><heading>MISCELLANEOUS PROVISIONS</heading> <section> <num value="201">SEC. 201.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1400">20 USC 1400 note</ref>.</p></sidenote> <heading>EFFECTIVE DATES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Parts A and B</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in paragraph (2), parts A and B of the Individuals with Disabilities Education Act, as amended by title I, shall take effect upon the enactment of this Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Exceptions</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Sections 612(a)(4), 612(a)(14), 612(a)(16), 614(d) (except for paragraph (6)), and 618 of the Individuals with Disabilities Education Act, as amended by title I, shall take effect on July 1, 1998.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Section 617</inline>.—</heading><content>Section 617 of the Individuals with Disabilities Education Act, as amended by title I, shall take effect on October 1, 1997.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <heading><inline class="smallCaps">Individualized education programs and comprehensive system of personnel development</inline>.—</heading><content>Section 618 of the Individuals with Disabilities Education Act, as in effect on the day before the date of the enactment of this Act, and the provisions of parts A and B of the Individuals with Disabilities Education Act relating to individualized education programs and the State’s comprehensive system of personnel development, as so in effect, shall remain in effect until July 1, 1998.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <heading><inline class="smallCaps">Sections 611 and 619</inline>.—</heading><content>Sections 611 and 619, as amended by title I, shall take effect beginning with funds appropriated for fiscal year 1998.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1431">20 USC 1431 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Part C</inline>.—</heading><content>Part C of the Individuals with Disabilities Education Act, as amended by title I, shall take effect on July 1, 1998.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1451">20 USC 1451 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Part D</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in paragraph (2), part D of the Individuals with Disabilities Education Act, as amended by title I, shall take effect on October 1, 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Exception</inline>.—</heading><content>Paragraphs (1) and (2) of section 661(g) of the Individuals with Disabilities Education Act, as amended by title I, shall take effect on January 1, 1998.</content></paragraph> </subsection> </section> <section> <num value="202">SEC. 202.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1451">20 USC 1451 note</ref>.</p></sidenote> <heading>TRANSITION.</heading> <content>Notwithstanding any other provision of law, beginning on October 1, 1997, the Secretary of Education may use funds appropriated under part D of the Individuals with Disabilities Education Act to make continuation awards for projects that were funded under section 618 and parts C through G of such Act (as in effect on September 30, 1997).<page identifier="/us/stat/111/157">111 STAT. 157</page></content> </section> <section> <num value="203">SEC. 203.</num> <heading>REPEALERS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8">Effective dates.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Part I</inline>.—</heading><content>Effective October 1, 1998, part I of the Individuals with Disabilities Education Act is hereby repealed.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1491">20 USC 1491 <i>et seq</i></ref>.</p></sidenote></content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Part H</inline>.—</heading><content>Effective July 1, 1998, part H of such Act is hereby repealed.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1491">20 USC 1471 <i>et seq</i></ref>.</p></sidenote></content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Parts C, E, F, and G</inline>.—</heading><content>Effective October 1, 1997, parts C, E, F, and G of such Act are hereby repealed.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1491">20 USC 1421 <i>et seq</i></ref>.</p></sidenote></content> </subsection> </section> Approved June 4, 1997.
LEGISLATIVE HISTORY—H.R. 5 (S. 717): HOUSE REPORTS: No. 105–95 (Comm. on Education and the Workforce). CONGRESSIONAL RECORD, Vol. 143 (1997):

May 13, considered and passed House.

May 14, considered and passed Senate.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):

June 4, Presidential remarks and statement.

 Public Law 105–18: Making emergency supplemental appropriations for recovery from natural disasters, and for overseas peacekeeping efforts, including those in Bosnia, for the fiscal year ending September 30, 1997, and for other purposes. Public Law18 Public Law 105–18 111 Stat. 158 1997-06-12 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 158 Public Law105–18 105th Congress
An Act Making emergency supplemental appropriations for recovery from natural disasters, and for overseas peacekeeping efforts, including those in Bosnia, for the fiscal year ending September 30, 1997, and for other purposes.

June 12, 1997

[H.R. 1871]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

1997 Emergency Supplemental Appropriations Act for Recovery from Natural Disasters, and for Overseas Peacekeeping Efforts, Including Those in Bosnia.
That the following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for recovery from natural disasters, and for overseas peacekeeping efforts, including those in Bosnia, for the fiscal year ending September 30, 1997, and for other purposes, namely:
<num value="I">TITLE I—</num><heading>EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR THE DEPARTMENT OF DEFENSE</heading> <chapter> <num value="1">CHAPTER 1</num> <heading>DEPARTMENT OF DEFENSE—MILITARY</heading> <subheading>MILITARY PERSONNEL</subheading> <appropriations level="intermediate"> <heading>Military Personnel, Army</heading> <content>For an additional amount for “Military Personnel, Army”, $306,800,000: <proviso><i>Provided,</i> That such amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Military Personnel, Navy</heading> <content>For an additional amount for “Military Personnel, Navy”, $7,900,000: <proviso><i>Provided,</i> That such amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Military Personnel, Marine Corps</heading> <content>For an additional amount for “Military Personnel, Marine Corps”, $300,000: <proviso><i>Provided,</i> That such amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.</proviso><page identifier="/us/stat/111/159">111 STAT. 159</page></content> </appropriations> <appropriations level="intermediate"> <heading>Military Personnel, Air Force</heading> <content>For an additional amount for “Military Personnel, Air Force”, $29,100,000: <proviso><i>Provided,</i> That such amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.</proviso></content> </appropriations> <appropriations level="major"> <heading>OPERATION AND MAINTENANCE</heading> <appropriations level="intermediate"> <heading>Overseas Contingency Operations Transfer Fund</heading> <subheading>(including transfer of funds)</subheading> <content>For an additional amount for “Overseas Contingency Operations Transfer Fund”, $1,430,100,000: <proviso><i>Provided,</i> That the Secretary of Defense may transfer these funds only to Department of Defense operation and maintenance accounts:</proviso> <proviso><i>Provided further,</i> That the funds transferred shall be merged with and shall be available for the same purposes and for the same time period, as the appropriation to which transferred:</proviso> <proviso><i>Provided further,</i> That the transfer authority provided in this paragraph is in addition to any other transfer authority available to the Department of Defense:</proviso> <proviso><i>Provided further,</i> That such amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>OPLAN 34A/35 P.O.W. Payments</heading> <content>For payments to individuals under section 657 of Public Law 104–201, $20,000,000, to remain available until expended.</content> </appropriations> </appropriations> <appropriations level="major"> <heading>REVOLVING AND MANAGEMENT FUNDS</heading> <appropriations level="intermediate"> <heading>Reserve Mobilization Income Insurance Fund</heading> <content>For an additional amount for the “Reserve Mobilization Income Insurance Fund”, $72,000,000, to remain available until expended: <proviso><i>Provided,</i> That the entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.</proviso></content> </appropriations> </appropriations> <level> <heading>GENERAL PROVISIONS, CHAPTER 1</heading> <subheading>(<inline class="smallCaps">transfer of funds</inline>)</subheading> <section> <num value="101"><inline class="smallCaps">Sec</inline>. 101.</num> <content class="inline">The Secretary of the Navy shall transfer up to $23,000,000 to “Operation and Maintenance, Marine Corps” from the following accounts in the specified amounts, to be available only for reimbursing costs incurred for repairing damage caused by hurricanes, flooding, and other natural disasters during 1996 and 1997 to real property and facilities at Marine Corps facilities (including Camp Lejeune, North Carolina; Cherry Point, North Carolina; and the Mountain Warfare Training Center, Bridgeport, California); <list> <listItem><listContent class="indent1 fontsize10 depth0">“Military Personnel, Manne Corps”, $4,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Operation and Maintenance, Marine Corps”, $11,000,000;<page identifier="/us/stat/111/160">111 STAT. 160</page></listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Procurement of Ammunition, Navy and Marine Corps, 1996/1998”, $4,000,000; and</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Procurement, Marine Corps, 1996/1998”, $4,000,000.</listContent></listItem> </list> </content></section> <section> <num value="102"><inline class="smallCaps">Sec</inline>. 102.</num> <content class="inline">In addition to the amounts appropriated in title VI of the Department of Defense Appropriations Act, 1997 (as contained in section 101(b) of Public Law 104–208), under the heading “Defense Health Program”, $21,000,000 is hereby appropriated and made available only for the provision of direct patient care at military treatment facilities.</content> </section> <section> <num value="103"><inline class="smallCaps">Sec</inline>. 103.</num> <content class="inline">In addition to the amounts appropriated in title II of the Department of Defense Appropriations Act, 1997 (as contained in section 101(b) of Public Law 104–208), under the heading “Operation and Maintenance, Defense-Wide”, $10,000,000 is hereby appropriated and made available only for force protection and counter-terrorism initiatives.</content> </section> <section> <num value="104"><inline class="smallCaps">Sec</inline>. 104.</num> <content class="inline">In addition to the amounts provided in Public Law 104–208, $25,800,000 is appropriated under the heading “Overseas Humanitarian, Disaster and Civic Aid”: <proviso><i>Provided,</i> That from the funds available under that heading, the Secretary of Defense shall make a grant in the amount of $25,800,000 to the American Red Cross for Armed Forces emergency services.</proviso></content> </section> <section> <num value="105"><inline class="smallCaps">Sec</inline>. 105.</num><sidenote><p class="indent0 firstIndent0 fontsize8">President.</p></sidenote> <heading><inline class="smallCaps">Report on Cost and Source of Funds for Military Activities Relating to Bosnia</inline>.—</heading><subsection class="inline"><num value="a">(a)</num> <content>Not later than 60 days after enactment of this Act, the President shall submit to Congress the report described in subsection (b).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Report Elements</inline>.—</heading><chapeau>The report referred to in subsection (a) shall include the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>A detailed description of the estimated cumulative cost of all United States activities relating to Bosnia after December 1, 1995, including—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>the cost of all deployments, training activities, and mobilization and other preparatory activities of the Armed Forces; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>the cost of all other activities relating to United States policy toward Bosnia, including humanitarian assistance, reconstruction assistance, aid and other financial assistance, the rescheduling or forgiveness of bilateral or multilateral aid, in-kind contributions, and any other activities of the United States Government.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>A detailed accounting of the source of funds obligated or expended to meet the costs described in paragraph (1), including—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in the case of expenditures of funds of Department of Defense, a breakdown of such expenditures by military service or defense agency, line item, and program; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in the case of expenditures of binds of other departments and agencies of the United States, a breakdown of such expenditures by department or agency and by program.</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="106"><inline class="smallCaps">Sec</inline>. 106.</num> <content class="inline">For an additional amount for “Family Housing, Navy and Marine Corps” to cover the incremental Operation and Maintenance costs arising from hurricane damage to family housing units at Marine Corps Base Camp Lejeune, North Carolina and Marine Corps Air Station Cherry Point, North Carolina, $6,480,000, as authorized by 10 U.S.C. 2854.<page identifier="/us/stat/111/161">111 STAT. 161</page></content> </section> </level> </chapter> <chapter> <num value="2">CHAPTER 2</num> <heading>RESCISSIONS</heading> <heading>DEPARTMENT OF DEFENSE—MILITARY</heading> <subheading>MILITARY PERSONNEL</subheading> <appropriations level="intermediate"> <heading>Military Personnel, Army</heading> <subheading>(rescission)</subheading> <content>Of the funds made available under this heading in Public Law 104–208, $57,000,000 are rescinded.</content> </appropriations> <appropriations level="intermediate"> <heading>Military Personnel, Navy</heading> <subheading>(rescission)</subheading> <content>Of the funds made available under this heading in Public Law 104–208, $18,000,000 are rescinded.</content> </appropriations> <appropriations level="intermediate"> <heading>Military Personnel, Marine Corps</heading> <subheading>(rescission)</subheading> <content>Of the funds made available under this heading in Public Law 104–208, $5,000,000 are rescinded.</content> </appropriations> <appropriations level="intermediate"> <heading>Military Personnel, Air Force</heading> <subheading>(rescission)</subheading> <content>Of the funds made available under this heading in Public Law 104–208, $23,000,000 are rescinded.</content> </appropriations> <appropriations level="major"> <heading>OPERATION AND MAINTENANCE</heading> <appropriations level="intermediate"> <heading>Operation and Maintenance, Army</heading> <subheading>(rescission)</subheading> <content>Of the funds made available under this heading in Public Law 104–208, $196,000,000 are rescinded.</content> </appropriations> <appropriations level="intermediate"> <heading>Operation and Maintenance, Navy</heading> <subheading>(rescission)</subheading> <content>Of the funds made available under this heading in Public Law 104–208, $51,000,000 are rescinded.</content> </appropriations> <appropriations level="intermediate"> <heading>Operation and Maintenance, Marine Corps</heading> <subheading>(rescission)</subheading> <content>Of the funds made available under this heading in Public Law 104–208, $3,000,000 are rescinded.<page identifier="/us/stat/111/162">111 STAT. 162</page></content> </appropriations> <appropriations level="intermediate"> <heading>Operation and Maintenance, Air Force</heading> <subheading>(rescission)</subheading> <content>Of the funds made available under this heading in Public Law 104–208, $117,000,000 are rescinded.</content> </appropriations> <appropriations level="intermediate"> <heading>Operation and Maintenance, Defense-Wide</heading> <subheading>(rescission)</subheading> <content>Of the funds made available under this heading in Public Law 104–208, $25,000,000 are rescinded.</content> </appropriations> <appropriations level="intermediate"> <heading>Environmental Restoration, Army</heading> <subheading>(rescission)</subheading> <content>Of the funds made available under this heading in Public Law 104–208, $250,000 are rescinded.</content> </appropriations> <appropriations level="intermediate"> <heading>Environmental Restoration, Navy</heading> <subheading>(rescission)</subheading> <content>Of the funds made available under this heading in Public Law 104–208, $250,000 are rescinded.</content> </appropriations> <appropriations level="intermediate"> <heading>Environmental Restoration, Air Force</heading> <subheading>(rescission)</subheading> <content>Of the funds made available under this heading in Public Law 104–208, $250,000 are rescinded.</content> </appropriations> <appropriations level="intermediate"> <heading>Environmental Restoration, Defense-Wide</heading> <subheading>(rescission)</subheading> <content>Of the funds made available under this heading in Public Law 104–208, $250,000 are rescinded.</content> </appropriations> <appropriations level="intermediate"> <heading>Environmental Restoration, Formerly Used Defense Sites</heading> <subheading>(rescission)</subheading> <content>Of the funds made available under this heading in Public Law 104–208, $250,000 are rescinded.</content> </appropriations> <appropriations level="intermediate"> <heading>Former Soviet Union Threat Reduction</heading> <subheading>(rescission)</subheading> <content>Of the funds made available under this heading in Public Law 104–208, $2,000,000 are rescinded.<page identifier="/us/stat/111/163">111 STAT. 163</page></content> </appropriations> </appropriations> <appropriations level="major"> <heading>PROCUREMENT</heading> <appropriations level="intermediate"> <heading>Aircraft Procurement, Army</heading> <subheading>(rescissions)</subheading> <content><p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 103–335, $1,085,000 are rescinded.</p> <p class="indent0 fontsize10">Of the hinds made available under this heading in Public Law 104–61, $5,000,000 are rescinded.</p> <p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 104–208, $13,000,000 are rescinded.</p> </content></appropriations> <appropriations level="intermediate"> <heading>Missile Procurement, Army</heading> <subheading>(rescissions)</subheading> <content><p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 103–335, $2,707,000 are rescinded.</p> <p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 104–208, $24,000,000 are rescinded.</p> </content></appropriations> <appropriations level="intermediate"> <heading>Procurement of Weapons and Tracked Combat Vehicles, Army</heading> <subheading>(rescissions)</subheading> <content><p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 103–335, $2,296,000 are rescinded.</p> <p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 104–61, $15,400,000 are rescinded.</p> <p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 104–208, $5,000,000 are rescinded.</p> </content></appropriations> <appropriations level="intermediate"> <heading>Procurement of Ammunition, Army</heading> <subheading>(rescissions)</subheading> <content><p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 103–335, $3,236,000 are rescinded.</p> <p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 104–61, $18,000,000 are rescinded.</p> <p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 104–208, $11,000,000 are rescinded.</p> </content></appropriations> <appropriations level="intermediate"> <heading>Other Procurement, Army</heading> <subheading>(rescissions)</subheading> <content><p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 103–335, $2,502,000 are rescinded.</p> <p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 104–208, $21,000,000 are rescinded.</p> </content></appropriations> <appropriations level="intermediate"> <heading>Aircraft Procurement, Navy</heading> <subheading>(rescissions)</subheading> <content><p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 103–335, $34,000,000 are rescinded.<page identifier="/us/stat/111/164">111 STAT. 164</page></p> <p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 104–208, $52,000,000 are rescinded.</p> </content></appropriations> <appropriations level="intermediate"> <heading>Weapons Procurement, Navy</heading> <subheading>(rescissions)</subheading> <content><p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 103–335, $16,000,000 are rescinded.</p> <p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 104–208, $6,000,000 are rescinded.</p> </content></appropriations> <appropriations level="intermediate"> <heading>Procurement of Ammunition, Navy and Marine Corps</heading> <subheading>(rescission)</subheading> <content>Of the funds made available under this heading in Public Law 103–335, $812,000 are rescinded.</content> </appropriations> <appropriations level="intermediate"> <heading>Shipbuilding and Conversion, Navy</heading> <subheading>(rescissions)</subheading> <content><p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 102–396, $10,000,000 are rescinded.</p> <p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 103–139, $18,700,000 are rescinded.</p> <p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 104–208, $33,000,000 are rescinded.</p> </content></appropriations> <appropriations level="intermediate"> <heading>Other Procurement, Navy</heading> <subheading>(rescissions)</subheading> <content><p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 103–335, $4,237,000 are rescinded.</p> <p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 104–61, $3,000,000 are rescinded.</p> <p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 104–208, $8,000,000 are rescinded.</p> </content></appropriations> <appropriations level="intermediate"> <heading>Procurement, Marine Corps</heading> <subheading>(rescission)</subheading> <content>Of the funds made available under this heading in Public Law 103–335, $1,207,000 are rescinded.</content> </appropriations> <appropriations level="intermediate"> <heading>Aircraft Procurement, Air Force</heading> <subheading>(rescissions)</subheading> <content><p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 103–335, $49,376,000 are rescinded.</p> <p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 104–61, $40,000,000 are rescinded.</p> <p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 104–208, $41,000,000 are rescinded.<page identifier="/us/stat/111/165">111 STAT. 165</page></p> </content></appropriations> <appropriations level="intermediate"> <heading>Missile Procurement, Air Force</heading> <subheading>(rescissions)</subheading> <content><p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 103–335, $16,020,000 are rescinded.</p> <p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 104–208, $163,000,000 are rescinded.</p> </content></appropriations> <appropriations level="intermediate"> <heading>Procurement of Ammunition, Air Force</heading> <subheading>(rescission)</subheading> <content>Of the funds made available under this heading in Public Law 104–61, $7,700,000 are rescinded.</content> </appropriations> <appropriations level="intermediate"> <heading>Other Procurement, Air Force</heading> <subheading>(rescissions)</subheading> <content><p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 103–335, $3,659,000 are rescinded.</p> <p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 104–61, $10,000,000 are rescinded.</p> <p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 104–208, $20,000,000 are rescinded.</p> </content></appropriations> <appropriations level="intermediate"> <heading>Procurement, Defense-Wide</heading> <subheading>(rescissions)</subheading> <content><p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 103–335, $8,860,000 are rescinded.</p> <p class="indent0 fontsize10">Of the hinds made available under this heading in Public Law 104–61, $16,113,000 are rescinded.</p> <p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 104–208, $5,000,000 are rescinded.</p> </content></appropriations> <appropriations level="intermediate"> <heading>National Guard and Reserve Equipment</heading> <subheading>(rescissions)</subheading> <content><p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 103–335, $5,029,000 are rescinded.</p> <p class="indent0 fontsize10">Of the hinds made available under this heading in Public Law 104–208, $8,000,000 are rescinded.</p> </content></appropriations> </appropriations> <appropriations level="major"> <heading>RESEARCH, DEVELOPMENT, TEST AND EVALUATION</heading> <appropriations level="intermediate"> <heading>Research, Development, Test and Evaluation, Army</heading> <subheading>(rescissions)</subheading> <content><p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 104–61, $4,366,000 are rescinded.</p> <p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 104–208, $18,000,000 are rescinded.<page identifier="/us/stat/111/166">111 STAT. 166</page></p> </content></appropriations> <appropriations level="intermediate"> <heading>Research, Development, Test and Evaluation, Navy</heading> <subheading>(rescissions)</subheading> <content><p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 104–61, $16,878,000 are rescinded.</p> <p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 104–208, $9,600,000 are rescinded.</p> </content></appropriations> <appropriations level="intermediate"> <heading>Research, Development, Test and Evaluation, Air Force</heading> <subheading>(rescissions)</subheading> <content><p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 104–61, $24,245,000 are rescinded.</p> <p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 104–208, $172,000,000 are rescinded.</p> </content></appropriations> <appropriations level="intermediate"> <heading>Research, Development, Test and Evaluation, Defense-Wide</heading> <subheading>(rescissions)</subheading> <content><p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 104–61, $95,714,000 are rescinded.</p> <p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 104–208, $87,000,000 are rescinded.</p> </content></appropriations> <appropriations level="intermediate"> <heading>Developmental Test and Evaluation, Defense</heading> <subheading>(rescission)</subheading> <content>Of the funds made available under this heading in Public Law 104–61, $6,692,000 are rescinded.</content> </appropriations> <appropriations level="intermediate"> <heading>Operational Test and Evaluation, Defense</heading> <subheading>(rescission)</subheading> <content>Of the funds made available under this heading in Public Law 104–61, $160,000 are rescinded.</content> </appropriations> </appropriations> <appropriations level="major"> <heading>REVOLVING AND MANAGEMENT FUNDS</heading> <appropriations level="intermediate"> <heading>National Defense Sealift Fund</heading> <subheading>(rescission)</subheading> <content>Of the funds made available under this heading in Public Law 104–208, $25,200,000 are rescinded.</content> </appropriations> </appropriations> <appropriations level="major"> <heading>OTHER DEPARTMENT OF DEFENSE PROGRAMS</heading> <appropriations level="intermediate"> <heading>Defense Health Program</heading> <subheading>(rescission)</subheading> <content>Of the funds made available under this heading in Public Law 104–208, $21,000,000 are rescinded.<page identifier="/us/stat/111/167">111 STAT. 167</page></content> </appropriations> <appropriations level="intermediate"> <heading>Chemical Agents and Munitions Destruction, Defense</heading> <subheading>(rescissions)</subheading> <content><p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 103–335, $456,000 are rescinded.</p> <p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 104–61, $20,652,000 are rescinded.</p> <p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 104–208, $27,000,000 are rescinded.</p> </content></appropriations> <appropriations level="intermediate"> <heading>Drug Interdiction and Counter-Drug Activities, Defense</heading> <subheading>(rescission)</subheading> <content>Of the funds made available under this heading in Public Law 104–208, $2,000,000 are rescinded.</content> </appropriations> </appropriations> <level> <heading>GENERAL PROVISIONS, CHAPTER 2</heading> <section> <heading>(<inline class="smallCaps">rescissions</inline>)</heading> <num value="201"><inline class="smallCaps">Sec</inline>. 201.</num> <content>Of the funds appropriated in the Military Construction Appropriations Act, 1996 (Public Law 104–32), amounts are hereby rescinded from the following accounts in the specified amounts: <list> <listItem><listContent class="indent1 fontsize10 depth0">“Military Construction, Air National Guard”, $5,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Military Construction, Defense-wide”, $41,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Base Realignment and Closure Account, Part II”, $35,391,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Base Realignment and Closure Account, Part III”, $75,638,000; and</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Base Realignment and Closure Account, Part IV”, $22,971,000:</listContent></listItem> </list> <p class="indent0 fontsize10"><proviso><i>Provided,</i> That of the funds appropriated in the Military Construction Appropriations Act, 1997 (Public Law 104–196), amounts are hereby rescinded from the following accounts in the specified amounts:</proviso></p> <list> <listItem><listContent class="indent1 fontsize10 depth0">“Military Construction, Army”, $1,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Military Construction, Navy”, $2,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Military Construction, Air Force”, $3,000,000; and</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Military Construction, Defense-wide”, $3,000,000.</listContent></listItem> </list> </content></section> <section> <heading>(<inline class="smallCaps">rescission</inline>)</heading> <num value="202"><inline class="smallCaps">Sec</inline>. 202.</num> <content class="inline">Of the funds appropriated for “Military Construction, Navy” under Public Law 103–307, $6,480,000 is hereby rescinded.</content> </section> </level> </chapter> <chapter> <num value="3">CHAPTER 3</num> <heading>GENERAL PROVISIONS—THIS TITLE</heading> <section> <num value="301"><inline class="smallCaps">Sec</inline>. 301.</num> <content class="inline">The Department of Defense is directed to report<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> to the congressional defense committees 30 days prior to transferring management, development, and acquisition authority over the elements of the National Missile Defense Program from the Military Services: <proviso><i>Provided,</i> That the Joint Requirements Oversight Council is directed to conduct an analysis and submit recommendations as to the recommended future roles of the Military Services with <page identifier="/us/stat/111/168">111 STAT. 168</page>respect to development and deployment of the elements of the National Missile Defense Program:</proviso> <proviso><i>Provided further,</i> That the analysis and recommendations shall be submitted to the congressional defense committees within 60 days of enactment of this Act:</proviso> <proviso><i>Provided further,</i> That for 60 days following enactment of this Act, the Department of Defense shall take no actions to delay or defer planned activities under the National Missile Defense Program based solely on the conduct of the Joint Requirements Oversight Council analysis.</proviso></content> </section> <section> <num value="302"><inline class="smallCaps">Sec</inline>. 302.</num> <content class="inline">Notwithstanding section 3612(a) of title 22, United States Code, the incumbent may continue to serve as the Secretary of Defense designee on the Board of the Panama Canal Commission if he retires as an officer of the Department of Defense, until and unless the Secretary of Defense designates another person to serve in this position.</content> </section> <section> <num value="303"><inline class="smallCaps">Sec</inline>. 303.</num> <heading><inline class="smallCaps">Authority of Secretary of Defense to Enter Into Lease of Building No. 1, Lexington Blue Grass Station, Lexington, Kentucky</inline>.—</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Authority to enter into lease</inline>.—</heading><content>The Secretary of Defense may enter into an agreement for the lease of Building No. 1, Lexington Blue Grass Station, Lexington, Kentucky, and any real property associated with the building, for purposes of the use of the building by the Defense Finance and Accounting Service. The agreement shall meet the requirements of this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Term</inline>.—</heading><paragraph class="inline"><num value="1">(1)</num> <content>The agreement under this section shall provide for a lease term of not to exceed 50 years, but may provide for one or more options to renew or extend the term of the lease.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <content>The agreement shall include a provision specifying that, if the Secretary ceases to require the leased building for purpose of the use of the building by the Defense Finance and Accounting Service before the expiration of the term of the lease (including any extension or renewal of the term under an option provided for in paragraph (1)), the remainder of the lease term may, upon the approval of the lessor of the building, be satisfied by the Secretary or another department or agency of the Federal Government (including a military department) for another purpose similar to such purpose.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Consideration</inline>.—</heading><paragraph class="inline"><num value="1">(1)</num> <content>The agreement under this section may not require rental payments by the United States under the lease under the agreement.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <content>The Secretary or other lessee, if any, under subsection (b)(2) shall be responsible under the agreement for payment of any utilities associated with the lease of the building covered by the agreement and for maintenance and repair of the building.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Improvement</inline>.—</heading><content>The agreement under this section may provide for the improvement of the building covered by the agreement by the Secretary or other lessee, if any, under subsection (b)(2).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Limitation on Certain Activities</inline>.—</heading><content>The Secretary may not obligate or expend funds for the costs of any utilities, maintenance and repair, or improvements under this lease under this section in any fiscal year unless funds are appropriated or otherwise made available for the Department of Defense for such payment in such fiscal year.<page identifier="/us/stat/111/169">111 STAT. 169</page></content> </subsection> </section> <section> <num value="304"><inline class="smallCaps">Sec</inline>. 304.</num> <content class="inline">Notwithstanding 31 U.S.C. 1502(a), 31 U.S.C. 1552(a), and 31 U.S.C. 1553(a), funds appropriated in Public Law 101511, Public Law 102–396, and Public Law 103–139, under the heading “Weapons Procurement, Navy”, that were obligated and expended to settle claims on the MK-50 torpedo program may continue to be obligated and expended to settle those claims.</content> </section> <section> <num value="305"><inline class="smallCaps">Sec</inline>. 305.</num> <content class="inline">None of the funds available to the Department of Defense in this or any other Act shall be available to pay the cost of operating a National Missile Defense Joint Program Office which includes more than 55 military and civilian personnel located in the National Capital Region.</content> </section> <section> <num value="306"><inline class="smallCaps">Sec</inline>. 306.</num> <content class="inline">Funds obligated by the National Aeronautics and Space Administration (NASA) in the amount of $61,300,000 during fiscal year 1996, pursuant to the “Memorandum of Agreement between the National Aeronautics and Space Administration and the United States Air Force on Titan IV/Centaur Launch Support for the Cassini Mission,” signed September 8, 1994, and September 23, 1994, and Attachments A, B, and C to that Memorandum, shall be merged with Air Force appropriations available for research, development, test and evaluation and procurement for fiscal year 1996, and shall be available for the same time period as the appropriation with which merged, and shall be available for obligation only for those Titan IV vehicles and Titan IV-related activities under contract.</content> </section> <section> <num value="307"><inline class="smallCaps">Sec</inline>. 307.</num> <content class="inline">For the purposes of implementing the 1997 Defense<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2358">10 USC 2358 note</ref>.</p></sidenote> Experimental Program to Stimulate Competitive Research (DEPSCoR), the term “State” means a State of the United States, the District of Columbia, Puerto Rico, Guam and the Virgin Islands of the United States, American Samoa and the Commonwealth of the Northern Mariana Islands.</content> </section> </chapter> <num value="II">TITLE II—</num><heading>EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR RECOVERY FROM NATURAL DISASTERS</heading> <chapter> <num value="1">CHAPTER 1</num> <heading>DEPARTMENT OF AGRICULTURE</heading> <appropriations level="intermediate"> <heading>Farm Service Agency</heading> <appropriations level="small"> <heading>agricultural credit insurance fund program account</heading> <content><p class="indent0 fontsize10">For an additional amount for the “Agricultural Credit Insurance Fund Program Account” for the additional cost of direct and guaranteed loans authorized by 7 U.S.C. 1928–1929, including the cost of modifying such loans as defined in section 502 of the Congressional Budget Act of 1974, resulting from flooding and other natural disasters, $23,000,000, to remain available until expended, of which $18,000,000 shall be available for emergency insured loans and $5,000,000 shall be available for subsidized guaranteed operating loans: <proviso><i>Provided,</i> That the entire amount shall be available only to the extent that an official budget request for $23,000,000 that includes designation of the entire amount of the request as an emergency requirement as defined in the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, is transmitted by the President to the Congress:</proviso> <proviso><i>Provided further,</i> That such amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of such Act.</proviso><page identifier="/us/stat/111/170">111 STAT. 170</page></p> <p class="indent0 fontsize10">For an additional amount for the “Agricultural Credit Insurance Fund Program Account” for the additional cost of direct operating loans authorized by 7 U.S.C. 1928–1929, including the cost of modifying such loans as defined in section 502 of the Congressional Budget Act of 1974, $6,300,000, to remain available until expended.</p> </content></appropriations> <appropriations level="small"> <heading>emergency conservation program</heading> <content>For an additional amount for “Emergency Conservation Program” for expenses, including carcass removal, resulting from flooding and other natural disasters, $70,000,000, to remain available until expended: <proviso><i>Provided,</i> That the entire amount shall be available only to the extent that an official budget request for $70,000,000, that includes designation of the entire amount of the request as an emergency requirement as defined in the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, is transmitted by the President to the Congress:</proviso> <proviso><i>Provided further,</i> That such amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of such Act.</proviso></content> </appropriations> <appropriations level="small"> <heading>tree assistance program</heading> <content>An amount of $9,000,000 is provided for assistance to small orchardists to replace or rehabilitate trees and vineyards damaged by natural disasters: <proviso><i>Provided,</i> That the entire amount shall be available only to the extent that an official budget request of $9,000,000, that includes designation of the entire amount of the request as an emergency requirement as defined in the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, is transmitted by the President to the Congress:</proviso> <proviso><i>Provided further,</i> That such amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of such Act.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Commodity Credit Corporation Fund</heading> <appropriations level="small"> <heading>disaster reserve assistance program</heading> <content>Effective only for losses in the fiscal year beginning October 1, 1996, through the date of enactment of this Act, the Secretary may use up to $50,000,000 from proceeds earned from the sale of grain in the disaster reserve established in the Agricultural Act of 1970 to implement a livestock indemnity program for losses from natural disasters pursuant to a Presidential or Secretarial declaration requested prior to the date of enactment of this Act in a manner similar to catastrophic loss coverage available for other commodities under 7 U.S.C. 1508(b): <proviso><i>Provided,</i> That in administering a program described in the preceding sentence, the Secretary shall, to the extent practicable, utilize gross income and payment limitations conditions established for the Disaster Reserve <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s1427/a">7 USC 1427a note</ref>.</p></sidenote>Assistance Program for the 1996 crop year:</proviso> <proviso><i>Provided further,</i> That notwithstanding any other provision of law, beginning on October 1, 1997, grain in the disaster reserve established in the Agricultural Act of 1970 shall not exceed 20 million bushels:</proviso> <proviso><i>Provided further,</i> That the entire amount shall be available only to the extent an official budget request, that includes designation .of the entire amount of the request as an emergency requirement as defined in the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, is transmitted by the President to the Congress:</proviso> <page identifier="/us/stat/111/171">111 STAT. 171</page><proviso><i>Provided further,</i> That the entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of such Act.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Natural Resources Conservation Service</heading> <appropriations level="small"> <heading>watershed and flood prevention operations</heading> <content>For an additional amount for “Watershed and Flood Prevention Operations” to repair damages to the waterways and watersheds, including debris removal that would not be authorized under the Emergency Watershed Program, resulting from flooding and other natural disasters, including those in prior years, $166,000,000, to remain available until expended: <proviso><i>Provided,</i> That the entire amount shall be available only to the extent an official budget request for $166,000,000, that includes designation of the entire amount of the request as an emergency requirement as defined in the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, is transmitted by the President to the Congress:</proviso> <proviso><i>Provided further,</i> That the entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of such Act:</proviso> <proviso><i>Provided further,</i> That if the Secretary determines that the cost of land and farm structures restoration exceeds the fair market value of an affected agricultural land, the Secretary may use sufficient amounts, not to exceed $15,000,000, from funds provided under this heading to accept bids from willing sellers to provide floodplain easements for such agricultural land inundated by floods:</proviso> <proviso><i>Provided further,</i> That none of the funds provided under this heading shall be used for the salmon memorandum of understanding.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Rural Housing Service</heading> <appropriations level="small"> <heading>rural housing insurance fund program account</heading> <subheading>Rural Housing Assistance Program</subheading> <content>Any unobligated balances remaining in the “Rural Housing Insurance Fund Program Account” from prior years’ disaster supplementals shall be available until expended for Section 502 housing loans, Section 504 loans and grants, Section 515 loans, and domestic farm labor grants to meet emergency needs resulting from natural disasters: <proviso><i>Provided,</i> That such unobligated balances shall be available only to the extent an official budget request that includes designation of the entire amount of the request as an emergency requirement as defined in the Balanced Budget and Emergency Deficit Control Act of 1985 is transmitted by the President to the Congress:</proviso> <proviso><i>Provided further,</i> That such unobligated balances are designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of such Act:</proviso> <proviso><i>Provided further,</i> That notwithstanding section 520 of the Housing Act of 1949, as amended, (42 U.S.C. 1490) the College Station area of Pulaski County, Arkansas shall be eligible for loans and grants available through the Rural Housing Service:</proviso> <proviso><i>Provided further,</i> That funds made available in Public Law 104–180 for Community Facility Grants for the Rural Housing Assistance Program may be provided to any community otherwise eligible for a Community Facility Loan for expenses directly or indirectly resulting from flooding and other natural disasters.</proviso><page identifier="/us/stat/111/172">111 STAT. 172</page></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Rural Utilities Service</heading> <appropriations level="small"> <heading>rural utilities assistance program</heading> <content>For an additional amount for “Rural Utilities Assistance Program”, for the cost of direct loans, loan guarantees, and grants, including the cost of modifying loans as defined in section 502 of the Congressional Budget Act of 1974, for emergency expenses resulting from flooding and other natural disasters, $4,000,000, to remain available until September 30, 1998. <proviso><i>Provided,</i> That the entire amount shall be available only to the extent that an official budget request for $4,000,000, that includes designation of the entire amount of the request as an emergency requirement as defined in the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, is transmitted by the President to the Congress:</proviso> <proviso><i>Provided further,</i> That the entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Food and Consumer Service</heading> <appropriations level="small"> <heading>special supplemental nutrition program for women, infants, and children (wic)</heading> <content>For an additional amount for the “Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)” as authorized by section 17 of the Child Nutrition Act of 1966, as amended (42 U.S.C. et seq.), $76,000,000, to remain available through September 30, 1998: <proviso><i>Provided,</i> That the Secretary shall allocate such funds through the existing formula or, notwithstanding sections 17(g), (h), or (i) of such Act and the regulations promulgated thereunder, such other means as the Secretary deems necessary.</proviso></content> </appropriations> </appropriations> <level> <heading>GENERAL PROVISION, CHAPTER 1</heading> <section> <num value="1001">SEC. 1001.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s1622">7 USC 1622 note</ref>.</p></sidenote> <heading>COLLECTION AND DISSEMINATION OF INFORMATION ON PRICES RECEIVED FOR BULK CHEESE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Not later than 30 days after the date of enactment of this Act, the Secretary of Agriculture shall collect and disseminate, on a weekly basis, statistically reliable information, obtained from cheese manufacturing areas in the United States on prices received and terms of trade involving bulk cheese, including information on the national average price for bulk cheese sold through spot and forward contract transactions. To the maximum extent practicable, the Secretary shall report the prices and terms of trade for spot and forward contract transactions separately.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Confidentiality</inline>.—</heading><content>All information provided to, or acquired by, the Secretary under subsection (a) shall be kept confidential by each officer and employee of the Department of Agriculture except that general weekly statements may be issued that are based on the information and that do not identify the information provided by any person.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than 150 days after the date of enactment of this Act, the Secretary shall report to the Committee on Agriculture, and the Committee on Appropriations, of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry, and the Committee on Appropriations, of the Senate, <page identifier="/us/stat/111/173">111 STAT. 173</page>on the rate of reporting compliance by cheese manufacturers with respect to the information collected under subsection (a). At the time of the report, the Secretary may submit legislative recommendations to improve the rate of reporting compliance.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Termination of Effectiveness</inline>.—</heading><content>The authority provided by subsection (a) terminates effective April 5, 1999.</content> </subsection> </section> </level> </chapter> <chapter> <num value="2">CHAPTER 2</num> <heading>DEPARTMENT OF COMMERCE</heading> <appropriations level="intermediate"> <heading>Economic Development Administration</heading> <appropriations level="small"> <heading>economic development assistance programs</heading> <content>For an additional amount for “Economic Development Assistance Programs” for emergency infrastructure expenses and the capitalization of revolving loan funds related to recent flooding and other natural disasters, $52,200,000, to remain available until expended, of which not to exceed $2,000,000 may be available for administrative expenses and may be transferred to and merged with the appropriations for “Salaries and Expenses”: <proviso><i>Provided,</i> That the entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Institute of Standards and Technology</heading> <appropriations level="small"> <heading>industrial technology services</heading> <content>Of the amount provided under this heading in Public Law 104–208 for the Advanced Technology Program, not to exceed $35,000,000 shall be available for the award of new grants.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Oceanic and Atmospheric Administration</heading> <appropriations level="small"> <heading>operations, research, and facilities</heading> <content>Within amounts available for “Operations, Research, and Facilities” for Satellite Observing Systems, not to exceed $7,000,000 is available until expended to provide disaster assistance related to recent flooding and red tide pursuant to section 312(a) of the Magnuson-Stevens Fishery Conservation and Management Act, and not to exceed $2,000,000 is available until expended to implement the Magnuson-Stevens Fishery Conservation and Management Act: <proviso><i>Provided,</i> That the entire amount shall be available only to the extent that an official budget request for $9,000,000, that includes designation of the entire amount of the request as an emergency requirement as defined in the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, is transmitted by the President to Congress:</proviso> <proviso><i>Provided further,</i> That the entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of such Act.</proviso></content> </appropriations> <appropriations level="small"> <heading>construction</heading> <content>For an additional amount for “Construction” for emergency expenses resulting from flooding and other natural disasters, $10,800,000, to remain available until expended: <proviso><i>Provided,</i> That <page identifier="/us/stat/111/174">111 STAT. 174</page>the entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.</proviso></content> </appropriations> </appropriations> <appropriations level="major"> <heading>RELATED AGENCY</heading> <appropriations level="intermediate"> <heading>Commission on the Advancement of Federal Law Enforcement</heading> <content>For an additional amount for the operations of the Commission on the Advancement of Federal Law Enforcement, $2,000,000, to remain available until expended.</content> </appropriations> </appropriations> <level> <heading>GENERAL PROVISIONS, CHAPTER 2</heading> <section> <num value="2001"><inline class="smallCaps">Sec</inline>. 2001.</num> <content class="inline">Of the funds currently contained within the “Counterterrorism Fund” of the Department of Justice, $3,000,000 is provided for allocation by the Attorney General to the appropriate unit or units of government in Ogden, Utah, for necessary expenses, including enhancements and upgrade of security and communications infrastructure, to counter any potential terrorism threat related to the 2002 Winter Olympic games to be held in Utah.</content> </section> <section> <num value="2002"><inline class="smallCaps">Sec</inline>. 2002.</num> <heading><inline class="smallCaps">Expanding Small Business Participation in Dredging</inline>.—</heading><content class="inline">Section 722(a) of the Small Business Competitiveness Demonstration Program Act of 1988 (15 U.S.C. 644 note) is amended by striking “<quotedText>September 30, 1996</quotedText>” and inserting “<quotedText>September 30, 1997</quotedText>”.</content> </section> <section> <num value="2003"><inline class="smallCaps">Sec</inline>. 2003.</num> <content class="inline">Section 101 of the Marine Mammal Protection Act of 1972 (16 U.S.C. 1371) is amended by adding at the end thereof the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Good Samaritan Exemption</inline>.—</heading><chapeau>It shall not be a violation of this Act to take a marine mammal if—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>such taking is imminently necessary to avoid serious injury, additional injury, or death to a marine mammal entangled in fishing gear or debris;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>reasonable care is taken to ensure the safe release of the marine mammal, taking into consideration the equipment, expertise, and conditions at hand;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>reasonable care is exercised to prevent any further injury to the marine mammal; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>such taking is reported to the Secretary within 48 hours.”.</content></paragraph> </subsection> </quotedContent> </content></section> <section> <num value="2004"><inline class="smallCaps">Sec</inline>. 2004.</num> <content class="inline">Notwithstanding any other provision of law, the Secretary of Commerce shall have the authority to reprogram or transfer up to $41,000,000 of the amounts provided under “National Oceanic and Atmospheric Administration, Operations, Research, and Facilities” for Satellite Observing Systems in Public Law 104208 for other programmatic and operational requirements of the National Oceanic and Atmospheric Administration and the Department of Commerce subject to notification of the Committees on Appropriations of the House of Representatives and the Senate in accordance with section 605 of the Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1997 and which shall not be available for obligation or expenditure except in compliance with the procedure set forth in that section.<page identifier="/us/stat/111/175">111 STAT. 175</page></content> </section> </level> </chapter> <chapter> <num value="3">CHAPTER 3</num> <heading>DEPARTMENT OF DEFENSE—CIVIL</heading> <subheading>DEPARTMENT OF THE ARMY</subheading> <appropriations level="intermediate"> <heading>Corps of Engineers—Civil</heading> <appropriations level="small"> <heading>flood control, mississippi river and tributaries, arkansas, illinois, kentucky, louisiana, mississippi, missouri, and tennessee</heading> <content>For an additional amount for “Flood Control, Mississippi River and Tributaries, Arkansas, Illinois, Kentucky, Louisiana, Mississippi, Missouri, and Tennessee” for emergency expenses due to flooding and other natural disasters, $20,000,000, to remain available until expended: <proviso><i>Provided,</i> That the entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.</proviso></content> </appropriations> <appropriations level="small"> <heading>operation and maintenance, general</heading> <content>For an additional amount for “Operation and Maintenance, General” for emergency expenses due to flooding and other natural disasters, $150,000,000, to remain available until expended: <proviso><i>Provided,</i> That of the total amount appropriated, the amount for eligible navigation projects which may be derived from the Harbor Maintenance Trust Fund pursuant to Public Law 99–662, shall be derived from that fund:</proviso> <proviso><i>Provided further,</i> That of the total amount appropriated, $5,000,000 shall be available solely for the Secretary of the Army, acting through the Chief of Engineers, to pay the costs of the Corps of Engineers and other Federal agencies associated with the development of necessary studies, an interagency management plan, environmental documentation, continued monitoring, and other activities related to allocations of water in the Alabama-Coosa-Tallapoosa and Apalachicola-Chattahoochee-Flint River Basins:</proviso> <proviso><i>Provided further,</i> That no portion of such $5,000,000 may be used by the Corps of Engineers to revise its master operational manuals or water control plans for operation of the reservoirs for the two river basins until (1) the interstate compacts for the two river basins are ratified by the Congress by law; and (2) the water allocation formulas for the two river basins have been agreed to by the States of Alabama, Georgia, and Florida and the Federal representative to the compacts:</proviso> <proviso><i>Provided further,</i> That the preceding proviso shall not apply to the use of such funds for any environmental reviews necessary for the Federal representative to approve the water allocation formulas for the two river basins:</proviso> <proviso><i>Provided further,</i> That the entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.</proviso></content> </appropriations> <appropriations level="small"> <heading>flood control and coastal emergencies</heading> <content>For an additional amount for “Flood Control and Coastal Emergencies” due to flooding and other natural disasters, $415,000,000, to remain available until expended: <proviso><i>Provided,</i> That the entire amount is designated by Congress as an emergency requirement <page identifier="/us/stat/111/176">111 STAT. 176</page>pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended:</proviso> <proviso><i>Provided further,</i> That with $5,000,000 of the funds appropriated herein, the Secretary of the Army is directed to initiate and complete preconstruction engineering and design and the associated Environmental Impact Statement for an emergency outlet from Devils Lake, North Dakota, to the Sheyenne River:</proviso> <proviso><i>Provided further,</i> That of the funds appropriated under this paragraph, $5,000,000 shall be used for the project consisting of channel restoration and improvements on the James River authorized by section 401(b) of the Water Resources Development Act of 1986 (Public Law 99–662; 100 Stat. 4128) if the Secretary of the Army determines that the need for such restoration and improvements constitutes an emergency.</proviso></content> </appropriations> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF THE INTERIOR</heading> <appropriations level="intermediate"> <heading>Bureau of Reclamation</heading> <appropriations level="small"> <heading>operation and maintenance</heading> <content>For an additional amount for “Operation and Maintenance”, $7,355,000, to remain available until expended, to repair damage caused by floods and other natural disasters: <proviso><i>Provided,</i> That of the total appropriated, the amount for program activities that can be financed by the Reclamation Fund shall be derived from that fund:</proviso> <proviso><i>Provided further,</i> That the entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.</proviso></content> </appropriations> </appropriations> </appropriations> <level> <heading>GENERAL PROVISIONS, CHAPTER 3</heading> <section> <num value="3001"><inline class="smallCaps">Sec</inline>. 3001.</num> <subsection class="inline"><num value="a">(a)</num> <content>Beginning in fiscal year 1997 and thereafter, the United States members and the alternate members appointed under the Susquehanna River Basin Compact (Public Law 91575), and the Delaware River Basin Compact (Public Law 87328), shall be officers of the U.S. Army Corps of Engineers, who hold Presidential appointments as Regular Army officers with Senate confirmation, and who shall serve without additional compensation.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>Section 2, Reservations, Paragraph (u) of Public Law 91575 (84 Stat. 1509) and section 15.1, Reservations, Paragraph (d) of Public Law 87–328 (75 Stat. 688, 691) are hereby repealed.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <content>Section 2.2 of Public Law 87–328 (75 Stat. 688, 691) is amended by striking the words “during the term of office of the President” and inserting the words “at the pleasure of the President”.</content> </subsection> </section> <section> <num value="3002"><inline class="smallCaps">Sec</inline>. 3002.</num> <content class="inline">Notwithstanding section 5 of the Reclamation Safety of Dams Act of 1978, Public Law 95–578, as amended, the Secretary of the Interior is authorized to obligate up to $1,200,000 for carrying out actual construction for safety of dam purposes to modify the Willow Creek Dam, Sun River Project, Montana.</content> </section> <section> <num value="3003"><inline class="smallCaps">Sec</inline>. 3003.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s1536">16 USC 1536 note</ref>.</p></sidenote> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Consultation and Conferencing</inline>.—</heading><content>As provided by regulations issued under the Endangered Species Act (16 U.S.C. 1531 et seq.) for emergency situations, formal consultation or conferencing under section 7(a)(2) or section 7(a)(4) of the Act for any action authorized, funded or carried out by any Federal agency <page identifier="/us/stat/111/177">111 STAT. 177</page>to repair a Federal or non-Federal flood control project, facility or structure may be deferred by the Federal agency authorizing, funding or carrying out the action, if the agency determines that the repair is needed to respond to an emergency causing an imminent threat to human lives and property in 1996 or 1997. Formal consultation or conferencing shall be deferred until the imminent threat to human lives and property has been abated. For purposes of this section, the term repair shall include preventive and remedial measures to restore the project, facility or structure to remove an imminent threat to human lives and property.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Reasonable and Prudent Measures</inline>.—</heading><content>Any reasonable and prudent measures specified under section 7 of the Endangered Species Act (16 U.S.C. 1536) to minimize the impact of an action taken under this section shall be related both in nature and extent to the effect of the action taken to repair the flood control project, facility or structure.</content> </subsection> </section> </level> </chapter> <chapter> <num value="4">CHAPTER 4</num> <heading>FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED PROGRAMS</heading> <section> <heading><inline class="smallCaps">assistance to ukraine</inline></heading> <num value="4001"><inline class="smallCaps">Sec</inline>. 4001.</num> <chapeau class="inline">The President may waive the minimum funding requirements contained in subsection (k) under the heading “Assistance for the New Independent States of the Former Soviet Union” contained in the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1997, as included in Public Law 104–208, for activities for the government of Ukraine funded in that subsection, if he determines and so reports to the Committees on Appropriations that the government of Ukraine:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>has not made progress toward implementation of comprehensive economic reform;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>is not taking steps to ensure that United States businesses and individuals are able to operate according to generally accepted business principles; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>is not taking steps to cease the illegal dumping of steel plate.</content></paragraph> </section> </chapter> <chapter> <num value="5">CHAPTER 5</num> <heading>DEPARTMENT OF THE INTERIOR</heading> <appropriations level="intermediate"> <heading>Bureau of Land Management</heading> <appropriations level="small"> <heading>construction</heading> <subheading>(including transfer of funds)</subheading> <content>For an additional amount for “Construction” to repair damage caused by floods and other natural disasters, $4,796,000, to remain available until expended, of which $4,403,000 is to be derived by transfer from unobligated balances of funds under the heading, “Oregon and California Grant Lands”, made available as supplemental appropriations in Public Law 104–134: <proviso><i>Provided,</i> That the entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.</proviso></content> </appropriations> <page identifier="/us/stat/111/178">111 STAT. 178</page> <appropriations level="small"> <heading>oregon and california grant lands</heading> <content>For an additional amount for “Oregon and California Grant Lands” to repair damage caused by floods and other natural disasters, $2,694,000, to remain available until expended and to be derived from unobligated balances of funds under the heading, “Oregon and California Grant Lands”, made available as supplemental appropriations in Public Law 104–134: <proviso><i>Provided,</i> That the entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>United States Fish and Wildlife Service</heading> <appropriations level="small"> <heading>resource management</heading> <content>For an additional amount for “Resource Management”, $5,300,000, to remain available until expended, for technical assistance and fish replacement made necessary by floods and other natural disasters, for restoration of public lands damaged by fire, and for payments to private landowners for the voluntary use of private land to store water in restored wetlands: <proviso><i>Provided,</i> That the entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.</proviso></content> </appropriations> <appropriations level="small"> <heading>construction</heading> <content>For an additional amount for “Construction”, $88,000,000, to remain available until expended, to repair damage caused by floods and other natural disasters: <proviso><i>Provided,</i> That the entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.</proviso></content> </appropriations> <appropriations level="small"> <heading>land acquisition</heading> <content>For an additional amount for “Land Acquisition”, $10,000,000, to remain available until expended, for the cost-effective emergency acquisition of land and water rights necessitated by floods and other natural disasters: <proviso><i>Provided,</i> That the entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Park Service</heading> <appropriations level="small"> <heading>construction</heading> <content><p class="indent0 fontsize10">For an additional amount for “Construction” for emergency expenses resulting from flooding and other natural disasters, $187,321,000, to remain available until expended: <proviso><i>Provided,</i> That the entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended:</proviso> <proviso><i>Provided further,</i> That of this amount, $30,000,000 shall be available only to the extent an official budget, request for a specific dollar amount, that includes designation of the entire amount of the request as an emergency requirement as defined in such Act, <page identifier="/us/stat/111/179">111 STAT. 179</page>is transmitted by the President to Congress, and upon certification by the Secretary of the Interior to the President that a specific amount of such funds is required for (1) repair or replacement of concession use facilities at Yosemite National Park if the Secretary determines, after consulting with the Director of the Office of Management and Budget, that the repair or replacement of those facilities cannot be postponed until completion of an agreement with the Yosemite Concessions Services Corporation or any responsible third party to satisfy its repair or replacement obligations for the facilities, or (2) the Federal portion, if any, of the costs of repair or replacement of such concession use facilities:</proviso> <proviso><i>Provided further,</i> That nothing herein should be construed as impairing in any way the rights of the United States against the Yosemite Concession Services Corporation or any other party or as relieving the Corporation or any other party of its obligations to the United States:</proviso> <proviso><i>Provided further,</i> That prior to any final<sidenote><p class="indent0 firstIndent0 fontsize8">Certification.</p></sidenote> Certification, agreement by the Secretary with the Corporation or any other party concerning its obligation to repair or replace concession use facilities, the Solicitor of the Department of the Interior shall certify that the agreement fully satisfies the obligations of the Corporation or third party:</proviso> <proviso><i>Provided further,</i> That nothing herein, or any payments, repairs, or replacements made by the Corporation or a third party in fulfillment of the Corporation’s obligations to the United States to repair and replace damaged facilities, shall create any possessory interest for the Corporation or such third party in such repaired or replaced facilities:</proviso> <proviso><i>Provided further,</i> That any payments made to the United States by the Corporation or a third party for repair or replacement of concession use facilities shall be deposited in the General Fund of the Treasury or, where facilities are repaired or replaced by the Corporation or any other third party, an equal amount of appropriations for “Construction” shall be rescinded.</proviso></p> <p class="indent0 fontsize10">For an additional amount for “Construction”, $10,000,000, to remain available until expended, to make repairs, construct facilities, and provide visitor transportation and for related purposes at Yosemite National Park.</p> </content></appropriations> </appropriations> <appropriations level="intermediate"> <heading>United States Geological Survey</heading> <appropriations level="small"> <heading>surveys, investigations, and research</heading> <content>For an additional amount for “Surveys, Investigations, and Research”, $4,650,000, to remain available until September 30, 1998, to repair or replace damaged equipment and facilities caused by floods and other natural disasters: <proviso><i>Provided,</i> That the entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Bureau of Indian Affairs</heading> <appropriations level="small"> <heading>operation of indian programs</heading> <content>For an additional amount for “Operation of Indian Programs”, $14,317,000, to remain available until September 30, 1998, for emergency response activities, including emergency school operations, heating costs, emergency welfare assistance, and to repair and replace facilities and resources damaged by snow, floods, and <page identifier="/us/stat/111/180">111 STAT. 180</page>other natural disasters: <proviso><i>Provided,</i> That the entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.</proviso></content> </appropriations> <appropriations level="small"> <heading>construction</heading> <content>For an additional amount for “Construction”, $6,249,000, to remain available until expended, to repair damages caused by floods and other natural disasters: <proviso><i>Provided,</i> That the entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended:</proviso> <proviso><i>Provided further,</i> That notwithstanding any other provision of law, funds appropriated herein and in Public Law 104–208 to the Bureau of Indian Affairs for repair of the Wapato irrigation project shall be made available on a nonreimbursable basis.</proviso></content> </appropriations> </appropriations> <appropriations level="major"> <heading>RELATED AGENCIES</heading> <subheading>DEPARTMENT OF AGRICULTURE</subheading> <appropriations level="intermediate"> <heading>Forest Service</heading> <appropriations level="small"> <heading>national forest system</heading> <content>For an additional amount for “National Forest System” for emergency expenses resulting from flooding and other natural disasters, $39,677,000, to remain available until expended: <proviso><i>Provided,</i> That the entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.</proviso></content> </appropriations> <appropriations level="small"> <heading>reconstruction and construction</heading> <content>For an additional amount for “Reconstruction and Construction” for emergency expenses resulting from flooding and other natural disasters, $27,685,000, to remain available until expended: <proviso><i>Provided,</i> That the entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.</proviso></content> </appropriations> </appropriations> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF HEALTH AND HUMAN SERVICES</heading> <appropriations level="intermediate"> <heading>Indian Health Service</heading> <appropriations level="small"> <heading>indian health services</heading> <content>For an additional amount for “Indian Health Services” for emergency expenses resulting from flooding and other natural disasters, $1,000,000, to remain available until expended: <proviso><i>Provided,</i> That the entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.</proviso><page identifier="/us/stat/111/181">111 STAT. 181</page></content> </appropriations> <appropriations level="small"> <heading>indian health facilities</heading> <content>For an additional amount for “Indian Health Facilities” for emergency expenses resulting from flooding and other natural disasters, $2,000,000, to remain available until expended: <proviso><i>Provided,</i> That the entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.</proviso></content> </appropriations> </appropriations> </appropriations> <level> <heading>GENERAL PROVISIONS, CHAPTER 5</heading> <section> <num value="5001"><inline class="smallCaps">Sec</inline>. 5001.</num> <content class="inline">Section 101(c) of Public Law 104–134 is amended as follows: Under the heading “Title III—General Provisions” amend sections 315(c)(1)(A) and 315(c)(1)(B) by striking in each of those<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s460/l">16 USC 460<i>l</i>–6a note</ref>.</p></sidenote> sections “104%” and inserting in lieu thereof “100%”; by striking in each of those sections “1995” and inserting in lieu thereof “1994”; and by striking in each of those sections “and thereafter annually adjusted upward by 4%,”.</content> </section> <section> <num value="5002"><inline class="smallCaps">Sec</inline>. 5002.</num> <content class="inline">Section 101(d) of Public Law 104–208 is amended as follows: Under the heading “Administrative Provisions, Indian Health Service” strike the seventh proviso and insert the following<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/110/3009">110 Stat. 3009–213</ref>.</p></sidenote> in lieu thereof: “: <proviso><i>Provided further,</i> That with respect to functions transferred by the Indian Health Service to tribes or tribal organizations, the Indian Health Service is authorized to provide goods and services to those entities, on a reimbursable basis, including payment in advance with subsequent adjustment, and the reimbursements received therefrom, along with the funds received from those entities pursuant to the Indian Self Determination Act, may be credited to the same or subsequent appropriation account which provided the funding, said amounts to remain available until expended</proviso>”.</content> </section> <section> <num value="5003"><inline class="smallCaps">Sec</inline>. 5003.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Extension and Effective Date</inline>.—</heading><content>Section<sidenote><p class="indent0 firstIndent0 fontsize8">Arizona.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t25/s390">25 USC 390 note</ref>.</p></sidenote> 3711(b)(1) of the San Carlos Apache Tribe Water Rights Settlement Act of 1992 (106 Stat. 4752) is amended by striking “<quotedText>June 30, 1997</quotedText>” and inserting “<quotedText>March 31, 1999</quotedText>”</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Extension for River System General Adjudication</inline>.—</heading><content>Section 3711 of such Act is amended by adding at the end<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t25/s390">25 USC 390 note</ref>.</p></sidenote> the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Extension for River System General Adjudication</inline>.—</heading><content>If, at any time prior to March 31, 1999, the Secretary notifies the Committee on Indian Affairs of the United States Senate or the Committee on Resources in the United States House of Representatives that the Settlement Agreement, as executed by the Secretary, has been submitted to the Superior Court of the State of Arizona in and for Maricopa County for consideration and approval as part of the General Adjudication of the Gila River System and Source, the March 31, 1999, referred to in subsection (b)(1) shall be deemed to be changed to December 31, 1999.”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Counties</inline>.—</heading><content>Section 3706(b)(3) of such Act is amended by<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/106/4745">106 Stat. 4745</ref>.</p></sidenote> inserting “<quotedText>Gila, Graham, Greenlee,</quotedText>” after “Maricopa,”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Parties to Agreement</inline>.—</heading><content>Section 3703(2) of such Act is<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/106/4741">106 Stat. 4741</ref>.</p></sidenote> amended by adding at the end the following new sentence: “The Gila Valley Irrigation District and the Franklin Irrigation District shall be added as parties to the Agreement, but only so long as none of the aforementioned parties objects to adding the Gila Valley Irrigation and/or the Franklin Irrigation District as parties to the Agreement.”.<page identifier="/us/stat/111/182">111 STAT. 182</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><content>Section 3703 of such Act is amended by adding the following new paragraphs: <quotedContent> <paragraph class="indent1 fontsize10"><num value="12">“(12)</num> <content>‘Morenci mine complex’ means the lands owned or leased by Phelps Dodge Corporation, now or in the future, delineated in a map as ‘Phelps Dodge Mining, Mineral Processing, and Auxiliary Facilities Water Use Area’, which map is dated March 19, 1996, and is on file with the Secretary of the Interior.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="13">“(13)</num> <content>‘Upper Eagle Creek Wellfield’ means that area in Greenlee County which is bounded by the eastern boundary of Graham County on the west, the southern boundary of the Black River watershed on the north, a line running north and south 5 miles east of the eastern boundary of Graham County on the east, and the southern boundary of the natural drainage of Cottonwood Canyon on the south.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Black River Facilities</inline>.—</heading><content>Section 3711 of such Act, as amended by subsection (b) of this Act, is further amended by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Black River Facilities</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The provisions and agreements set forth or referred to in paragraphs (2), (3), and (4) below shall be enforceable against the United States in United States district court, and the immunity of the United States for such purposes and for no other purpose is hereby waived. The provisions and agreements set forth or referred to in paragraphs (2)(A), (3), and (4) below shall be enforceable against the Tribe in United States district court, and the immunity of the Tribe for such purposes and for no other purpose, is hereby waived. The specific agreements made by the Tribe and set forth in paragraph (5) shall be enforceable against the Tribe in United States district court, and the immunity of the Tribe is hereby waived as to such specific agreements and for no other purpose.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Interim period</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>As of July 23, 1997, Phelps Dodge shall vacate the reservation and no longer rely upon permit #2000089, dated July 25, 1944. On such date the United States, through the Bureau of Reclamation, shall enter, operate, and maintain the Black River pump station, outbuildings, the pipeline, related facilities, and certain caretaker quarters (hereinafter referred to collectively as the ‘Black River facilities’).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>The United States and Phelps Dodge shall enter into a contract for delivery of water pursuant to subparagraph (C), below. Water for delivery to Phelps Dodge from the Black River shall not exceed an annual average of 40 acre feet per day, or 14,000 acre feet per year. All diversions from Black River to Phelps Dodge shall be junior to the diversion and use of up to 7,300 acre feet per year by the San Carlos Apache Tribe, and no such diversion for Phelps Dodge shall cause the flow of Black River to fall below 20 cubic feet per second. The United States shall account for the costs for operating and maintaining the Black River facilities, and Phelps Dodge shall reimburse the United States for such costs. Phelps Dodge shall pay to the United States, for delivery to the Tribe, the sum of $20,000 per month, with an annual CPI adjustment from July 23, 1997, for purposes of compensating the Tribe for United States use and occupancy of the Black <page identifier="/us/stat/111/183">111 STAT. 183</page>River facilities. Phelps Dodge and the Tribe shall cooperate with the United States in effectuating an orderly transfer of the operations of the Black River facilities from Phelps Dodge to the United States.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>Notwithstanding any other provision of law, the contract referred to in subparagraph (B) between the United States and Phelps Dodge which provides for the diversion of water from the Black River into the Black River facilities, and the delivery of such water to Phelps Dodge at that location where the channel of Eagle Creek last exits the reservation for use in the Morenci mine complex and the towns of Clifton and Morenci and at no other location, is ratified and confirmed.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>The power line right-of-way over the Tribe’s Reservation which currently is held by Phelps Dodge shall remain in place. During the interim period, Phelps Dodge shall provide power to the United States for operation of the pump station and related facilities without charge, and Phelps Dodge shall pay a monthly right-of-way fee to the Tribe of $5,000 per month, with an annual CPI adjustment from July 23, 1997.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>Any questions regarding the water claims associated with Phelps Dodge’s use of the Upper Eagle Creek Wellfield, its diversions of surface water from Eagle Creek, the San Francisco River, Chase Creek, and/or its use of other water supplies are not addressed in this title. No provision in this subsection shall affect or be construed to affect any claims by the Tribe, the United States, or Phelps Dodge to groundwater or surface water.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Final arrangements and terms</inline>.—</heading><chapeau>The interim period described in paragraph (2) shall extend until all conditions set forth in paragraph (3)(B) have been satisfied. At such time, the following final arrangements shall apply, based on the terms set forth below. Such terms shall bind the Tribe, the United States, and Phelps Dodge, and shall be enforceable pursuant to subsection (d)(1) of this Act.</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>The United States shall hold the Black River facilities in trust for the Tribe, without cost to the Tribe or the United States.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>Responsibility for operation of the Black River facilities shall be transferred from the United States to the Tribe. The United States shall train Tribal members during the interim period, and the responsibility to operate the Black River facilities shall be transferred upon satisfaction of 2 conditions—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>a finding by the United States that the Tribe has completed necessary training and is qualified to operate the Black River facilities; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>execution of the contract described in paragraph (3)(E), which contract shall be executed on or before December 31, 1998. In the event that the contract is not executed by December 31, 1998, the transfer described in this subsection shall occur on December 31, 1998 (so long as condition (i) of this subparagraph has been satisfied), based on application of the contract terms described in paragraph (3)(E), which terms shall be enforceable under this Act. Upon the <page identifier="/us/stat/111/184">111 STAT. 184</page>approval of the Secretary, the Tribe may contract with third parties to operate the Black River facilities.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>Power lines currently operated by Phelps Dodge on the Tribe’s Reservation, and the right-of-way associated with such power lines, shall be surrendered by Phelps Dodge to the Tribe, without cost to the Tribe. Prior to the surrender of the power lines, the Bureau of Reclamation shall arrange for an inspection of the power lines and associated facilities by a qualified third party and shall obtain a certification that such power lines and facilities are of sound design and are in good working order. Phelps Dodge shall pay for the cost of such inspection and certification. Concurrently with the surrender of the power lines and the right-of-way, Phelps Dodge shall construct a switch station at the boundary of the Reservation at which the Tribe may switch power on or off and shall deliver ownership and control of such switch station to the Tribe. Subsequent to the transfer of the power lines and the right-of-way and the delivery of ownership and control of the switch station to the Tribe, Phelps Dodge shall have no further obligation or liability of any nature with respect to the ownership, operation, or maintenance of the power lines, the right-of-way, or the switch station.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>The Tribe and the United States will enter into an exchange agreement with the Salt River Project which will deliver CAP water controlled by the Tribe to the Salt River Project in return for the diversion of water from the Black River into the Black River facilities. The exchange agreement shall be subject to review and approval by Phelps Dodge, which approval shall not be unreasonably withheld. Notwithstanding any other provision of law, the contract referred to in this subparagraph is ratified and confirmed.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <chapeau>The Tribe, the United States, and Phelps Dodge will execute a contract covering the lease and delivery of CAP water from the Tribe to Phelps Dodge on the following terms:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>The Tribe will lease to Phelps Dodge 14,000 acre feet of CAP water per year as of the date on which the interim period referred to in paragraph (2) expires. The lease shall be subject to the terms and conditions identified in the Tribal CAP Delivery Contract referenced in section 3706(b). The leased CAP water shall be delivered to Phelps Dodge from the Black River pursuant to the exchange referred to in subparagraph (D) above, based on diversions from the Black River that shall not exceed an annual average of 40 acre feet per day and shall not cause the flow of Black River to fall below 20 cubic feet per second. Such CAP water shall be delivered to Phelps Dodge at that location where the channel of Eagle Creek last exits the Reservation, to be utilized in the Morenci mine complex and the towns of Clifton and Morenci, and at no other location.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>The leased CAP water shall be junior to the diversion and use of up to 7,300 acre feet per year <page identifier="/us/stat/111/185">111 STAT. 185</page>from the Black and Salt Rivers by the San Carlos Apache Tribe.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <chapeau>The lease will be for a term of 50 years or, if earlier, the date upon which mining activities at the Morenci mine complex cease, with a right to renew for an additional 50 years upon a finding by the Secretary that the water is needed for continued mining activities at the Morenci mine complex. The lease shall have the following financial terms:</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>The Tribe will lease CAP water at a cost of $1,200 per acre foot. Phelps Dodge shall pay to the United States, on behalf of the Tribe, the sum of $5,000,000 upon the earlier of the execution of the agreement, or upon the expiration of the interim period referred to in paragraph (2) hereof, which amount shall be a prepayment for and applicable to the first 4,166 acre feet of CAP water to be delivered in each year during the term of the lease.</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>Phelps Dodge shall pay the United States, on behalf of the Tribe, the sum of $65 per acre foot per year, with an annual CPI adjustment for the remaining 9,834 acre feet of water to be delivered pursuant to the lease each year. Such payments shall be made in advance on January 1 of each year, with a reconciliation made at yearend, if necessary, in the event that less than 14,000 acre feet of CAP water is diverted from the Black River due to shortages in the CAP system or on the Black River.</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>Phelps Dodge shall pay in advance each month the Tribe’s reasonable costs associated with the Tribe’s operation, maintenance, and replacement of the Black River facilities for purposes of delivering water to Phelps Dodge pursuant to the lease, which costs shall be based upon the experience of the Bureau of Reclamation in operating the Black River facilities during the interim period referred to in paragraph (2), subject to an annual CPI adjustment, and providing for a credit for power provided by Phelps Dodge to the Tribe. In addition, Phelps Dodge shall pay a monthly fee of $30,000 to the United States, on behalf of the Tribe, to account for the use of the Tribe’s distribution system.</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>Phelps Dodge shall pay the United States operation, maintenance, and replacement charges associated with the leased CAP water and such reasonable interconnection charges as may be imposed by Salt River Project in connection with the exchange referred to in subparagraph (D) above.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>Notwithstanding the provisions of section 3707(b), any moneys, except Black River facilities OM&R, CAP OM&R and any charges associated with an exchange agreement with Salt River Project, paid to the United States on behalf of the Tribe from the <page identifier="/us/stat/111/186">111 STAT. 186</page>lease referred to under paragraph (3)(D)(iii) shall be held in trust by the United States for the benefit of the Tribe. There is hereby established in the Treasury of the United States a fund to be known as the ‘San Carlos Apache Tribe Lease Fund’ for such purpose. Interest accruing to the Fund may be used by the Tribe for economic and community development purposes upon presentation to the Secretary of a certified copy of a duly enacted resolution of the Tribal Council requesting distribution and a written budget approved by the Tribal Council. Such income may thereafter be expended only in accordance with such budget. Income not distributed shall be added to principal. The United States shall not be liable for any claim or causes of action arising from the Tribe’s use or expenditure of moneys distributed from the Fund.</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>The lease is not assignable to any third party, except with the consent of the Tribe and Phelps Dodge, and with the approval of the Secretary.</content></clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <content>Notwithstanding subsection (b) hereof, section 3706 shall be fully effective immediately with respect to the CAP water lease provided for in this subparagraph and the Secretary shall take all actions authorized by section 3706 necessary for purposes of implementing this subparagraph. Notwithstanding any other provision of law, the contract referred to in this subparagraph is ratified and confirmed and shall be enforceable in United States district court. In the event that no lease authorized by this subparagraph is executed, this subparagraph, notwithstanding any other provision of law, shall be enforceable as a lease among the Tribe, the United States, and Phelps Dodge in the United States district court, and the Secretary shall take all action authorized by section 3706 for purposes of implementing this subparagraph in such an event.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>Any questions regarding the water claims associated with Phelps Dodge’s use of the Eagle Creek Wellfield, its diversions of surface water from lower Eagle Creek, the San Francisco River, Chase Creek, and/or its use of other water supplies are not addressed by this title. No provision in this subsection shall affect or be construed to affect any claims by the Tribe, the United States, or Phelps Dodge to groundwater or surface water.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Eagle creek</inline>.—</heading><chapeau>From the effective date of this subsection, and during the Interim Period, the Tribe shall not, in any way, impede, restrict, or sue the United States regarding the passage of water from the Black River facilities into those portions of the channels of Willow Creek and Eagle Creek which flow through the Reservation. Phelps Dodge agrees to limit pumping from the Upper Eagle Creek Wellfield so that the combination of water from the Black River facilities and water pumped from the Upper Eagle Creek Wellfield does not exceed 22,000 acre feet per year of delivered water at the Phelps Dodge Lower Eagle Creek Pump Station below the Reservation. In calculating the pumping rates allowed under this subparagraph, transmission losses from Black River <page identifier="/us/stat/111/187">111 STAT. 187</page>and the Upper Eagle Creek Wellfield shall be estimated, but in no event shall such transmission losses be more than 10 percent of the Black River or Upper Eagle Creek Wellfield water. Based on this agreement, the Tribe shall not, in any way, impede, restrict, or sue Phelps Dodge regarding the passage of water from the Phelps Dodge Upper Eagle Creek Wellfield, except that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Phelps Dodge shall pay to the United States, on behalf of the Tribe, $5,000 per month, with an annual CPI adjustment from July 23, 1997, to account for the passage of such flows; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the Tribe and the United States reserve the right to challenge Phelps Dodge’s claims regarding the pumping of groundwater from the Upper Eagle Creek Wellfield, in accordance with paragraphs (2)(E) and (3)(F) above. In the event that a court determines that Phelps Dodge does not have the right to pump the Upper Eagle Creek Wellfield, the Tribe will no longer be subject to the restriction set forth in this subparagraph regarding the passage of water from the Wellfield through the Reservation. Nothing in this subsection shall affect the rights, if any, that Phelps Dodge might claim regarding the flow of water in the channel of Eagle Creek in the absence of this subsection.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Past claims</inline>.—</heading><content>The Act does not address claims relating to Phelps Dodge’s prior occupancy and operation of the Black River facilities. The Tribe agrees not to bring any such claims against the United States. The Tribe also agrees that within 30 days after Phelps Dodge has vacated the Reservation, it shall dismiss with prejudice the suit that it has filed in Tribal Court against Phelps Dodge (The San Carlos Apache Tribe v. Phelps Dodge, et al., Case No. C–97–118), which such dismissal shall not be considered a decision on the merits, and any claims that it might assert against Phelps Dodge in connection with Phelps Dodge’s prior occupancy and operation of the Black River facilities shall be brought exclusively in the United States district court.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Relationship to settlement</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>The term ‘Agreement’, as defined by section 3703(2), shall not include Phelps Dodge.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Section 3706(j) and section 3705(f) shall be<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/106/4745">106 Stat. 4745</ref>, 4744.</p></sidenote> repealed and shall have no effect.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Ratification of settlement</inline>.—</heading><content>The agreement between the San Carlos Apache Tribe, the Phelps Dodge Corporation, and the Secretary of the Interior, as set forth in this subsection, is hereby ratified and approved.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="g">(g)</num> <heading><inline class="smallCaps">Technical Amendment</inline>.—</heading><content>Section 3702(a)(3) is amended<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t106/s4740">106 Stat. 4740</ref>.</p></sidenote> by striking “<quotedText>qualification</quotedText>” and inserting “<quotedText>quantification</quotedText>”.</content> </subsection> </section> <section> <num value="5004"><inline class="smallCaps">Sec</inline>. 5004.</num> <chapeau class="inline">Paragraph (5) of section 104(c) of the Marine Mammal Protection Act of 1972 (16 U.S.C. 1374(c)(5)) is amended as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num><content> In subparagraph (A), by striking “<quotedText>, including polar bears taken but not imported prior to the date of enactment of the Marine Mammal Protection Act Amendments of 1994,</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>By adding the following new subparagraph at the end thereof:<page identifier="/us/stat/111/188">111 STAT. 188</page> <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Permits.</p><p class="indent0 firstIndent0 fontsize8">Polar bears.</p><p class="indent0 firstIndent0 fontsize8">Canada.</p></sidenote> <content>The Secretary of the Interior shall, expeditiously after the expiration of the applicable 30 day period under subsection (d)(2), issue a permit for the importation of polar bear parts (other than internal organs) from polar bears taken in sport hunts in Canada before the date of enactment of the Marine Mammal Protection Act Amendments of 1994, to each applicant who submits, with the permit application, proof that the polar bear was legally harvested in Canada by the applicant. The Secretary shall issue such permits without regard to the provisions of subparagraphs (A) and (C)(ii) of this paragraph, subsection (d)(3) of this section, and sections 101 and 102. This subparagraph shall not apply to polar bear parts that were imported before the effective date of this subparagraph.”.</content></subparagraph> </quotedContent> </content></paragraph> </section> </level> </chapter> <chapter> <num value="6">CHAPTER 6</num> <heading>DEPARTMENT OF HEALTH AND HUMAN SERVICES</heading> <appropriations level="intermediate"> <heading>Health Resources and Services Administration</heading> <appropriations level="small"> <heading>health education assistance loans program</heading> <content>Public Law 104–208, under the heading “Health Education <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/110/3009">110 Stat. 3009–243</ref>.</p></sidenote>Assistance Loans Program” is amended by inserting after “<quotedText>$140,000,000</quotedText>” the following: “: <proviso><i>Provided further,</i> That the Secretary may use up to $499,000 derived by transfer from insurance premiums collected from guaranteed loans made under title VII of the Public Health Service Act for the purpose of carrying out section 709 of that Act</proviso>”.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Administration for Children and Families</heading> <appropriations level="small"> <heading>children and families services programs</heading> <content>Public Law 104–208, under the heading titled “Children and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/110/3009">110 Stat. 3009–251</ref>.</p></sidenote>Families Services Programs” is amended by inserting after the reference to “part B(1) of title IV” the following: “and section 1110”.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Office of the Secretary</heading> <appropriations level="small"> <heading>public health and social services emergency fund</heading> <content>For expenses necessary to support high priority health research, $15,000,000, to remain available until expended: <proviso><i>Provided,</i> That the Secretary shall award such funds on a competitive basis.</proviso></content> </appropriations> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF EDUCATION</heading> <appropriations level="intermediate"> <heading>Education for the Disadvantaged</heading> <content>For additional amounts to carry out subpart 2 of part A of title I of the Elementary and Secondary Education Act of 1965, $101,133,000, of which $78,362,000 shall be for Basic Grants and $22,771,000 shall be for Concentration Grants, which shall be allocated, notwithstanding any other provision of law, only to those States, and counties within those States, that will receive, from funds available under the Department of Education Appropriations Act, 1997, smaller allocations for Grants to Local Educational Agencies than they would have received had those allocations been <page identifier="/us/stat/111/189">111 STAT. 189</page>calculated entirely on the basis of child poverty counts from the 1990 census: <proviso><i>Provided,</i> That the Secretary of Education shall use these additional funds to provide those States with 50 percent of the difference between the allocations they would have received had the allocations under that Appropriations Act been calculated entirely on the basis of the 1990 census data and the allocations under the 1997 Appropriations Act:</proviso> <proviso><i>Provided further,</i> That if any State’s total allocation under that Appropriations Act and this paragraph is less than its 1996 allocation for that subpart, that State shall receive, under this paragraph, the amount the State would have received had that allocation been calculated entirely on the basis of child poverty counts from the 1990 census:</proviso> <proviso><i>Provided further,</i> That the Secretary shall ratably reduce the allocations to States under the preceding proviso for either Basic Grants or Concentration Grants, or both, as the case may be, if the funds available are insufficient to make those allocations in full:</proviso> <proviso><i>Provided further,</i> That the Secretary shall allocate, to such counties in each such State, additional amounts for Basic Grants and Concentration Grants that are in the same proportion, respectively, to the total amounts allocated to the State, as the differences between such counties’ initial allocations for Basic Grants and Concentration Grants, respectively (compared to what they would have received had the initial allocations been calculated entirely on the basis of 1990 census data), are to the differences between the State’s initial allocations for Basic Grants and Concentration Grants, respectively (compared to the amounts the State would have received had the initial allocations been calculated entirely on the basis of 1990 census data):</proviso> <proviso><i>Provided further,</i> That the funds appropriated under this paragraph shall become available on July 1, 1997 and shall remain available through September 30, 1998:</proviso> <proviso><i>Provided further,</i> That the additional amounts appropriated under this paragraph shall not be taken into account in determining State allocations under any other program administered by the Secretary.</proviso></content> </appropriations> </appropriations> <appropriations level="major"> <heading>RELATED AGENCY</heading> <appropriations level="intermediate"> <heading>National Commission on the Cost of Higher Education</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses for the National Commission on the Cost of Higher Education, $650,000, to remain available until expended.</content> </appropriations> </appropriations> </appropriations> <level> <heading>GENERAL PROVISIONS, CHAPTER 6</heading> <section> <num value="6001"><inline class="smallCaps">Sec</inline>. 6001.</num> <content class="inline">Notwithstanding any other provision of law, fiscal year 1995 funds awarded under State-administered programs of the Department of Education and funds awarded for fiscal year 1996 for State-administered programs under the Rehabilitation Act of the Department of Education to recipients in Presidentially declared disaster areas, which were declared as such during fiscal year 1997, are available to those recipients for obligation until September 30, 1998: <proviso><i>Provided,</i> That for the purposes of assisting those recipients, the Secretary’s waiver authority under section 14401 of the Elementary and Secondary Education Act of 1965 <page identifier="/us/stat/111/190">111 STAT. 190</page>shall be extended to all State-administered programs of the Department of Education. This special waiver authority applies only to funds awarded for fiscal years 1995, 1996, and 1997.</proviso></content> </section> <section> <num value="6002"><inline class="smallCaps">Sec</inline>. 6002.</num> <content class="inline">Notwithstanding any other provision of law, the Secretary of Education may waive or modify any statutory or regulatory provision applicable to the student financial aid programs under title IV of the Higher Education Act that the Secretary deems necessary to assist individuals and other program participants who suffered financial harm from natural disasters and who, at the time the disaster struck were operating, residing at, or attending an institution of higher education, or employed within these areas on the date which the President declared the existence of a major disaster (or, in the case of an individual who is a dependent student, whose parent or stepparent suffered financial harm from such disaster, and who resided, or was employed in such an area at that time): <proviso><i>Provided further,</i> That such authority shall be in effect only for awards for award years 1996–1997 and 1997–1998.</proviso></content> </section> <section> <num value="6003"><inline class="smallCaps">Sec</inline>. 6003.</num> <content class="inline">None of the funds provided in this Act or in any other Act making appropriations for fiscal year 1997 may be used to administer or implement in Denver, Colorado, the Medicare Competitive Pricing/Open Enrollment Demonstration, as titled in the April 1, 1997, Final Request for Proposals (RFP).</content> </section> <section> <num value="6004">SEC. 6004.</num> <heading>EMERGENCY USE OF CHILD CARE FUNDS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Notwithstanding any other provision of law, during the period beginning on April 30, 1997, and ending on July 30, 1997, the Governors of the States described in paragraph (1) of subsection (b) may, subject to subsection (c), use amounts received for the provision of child care assistance or services under the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9801 et seq.) to provide emergency child care services to individuals described in paragraph (2) of subsection (b).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Eligibility</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Of states</inline>.—</heading><content>A State described in this paragraph is a State in which the President, pursuant to section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121), has determined that a major disaster exists, or that an area within the State is determined to be eligible for disaster relief under other Federal law by reason of damage related to flooding in 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Of individuals</inline>.—</heading><chapeau>An individual described in this subsection is an individual who—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>resides within any area in which the President, pursuant to section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121), has determined that a major disaster exists, or within an area determined to be eligible for disaster relief under other Federal law by reason of damage related to flooding in 1997, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>is involved in unpaid work activities (including the cleaning, repair, restoration, and rebuilding of homes, businesses, and schools) resulting from the flood emergency described in subparagraph (A).</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Limitations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Requirements</inline>.—</heading><content>With respect to assistance provided to individuals under this section, the quality, certification and <page identifier="/us/stat/111/191">111 STAT. 191</page>licensure, health and safety, nondiscrimination, and other requirements applicable under the Federal programs referred to in subsection (a) shall apply to child care provided or obtained under this section.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Amount of funds</inline>.—</heading><content>The total amount utilized by each of the States under subsection (a) during the period referred to in such subsection shall not exceed the total amount of such assistance that, notwithstanding the enactment of this section, would otherwise have been expended by each such State in the affected region during such period.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Priority</inline>.—</heading><content>In making assistance available under this section, the Governors described in subsection (a) shall give priority to eligible individuals who do not have access to income, assets, or resources as a direct result of the flooding referred to in subsection (b)(2)(A).</content> </subsection> </section> <level> <heading><inline class="smallCaps">extension of ssi redetermination provisions</inline></heading> <section> <num value="6005"><inline class="smallCaps">Sec</inline>. 6005.</num> <subsection class="inline"><num value="a">(a)</num> <chapeau class="inline">Section 402(a)(2)(D)(i) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)(D)(i)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subclause (I), by striking “<quotedText>the date which is 1 year after such date of enactment,</quotedText>” and inserting “<quotedText>September 30, 1997,</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subclause (III), by striking “<quotedText>the date of the redetermination with respect to such individual</quotedText>” and inserting “<quotedText>September 30, 1997</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>The amendment made by subsection (a) shall be effective<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1612">8 USC 1612 note</ref>.</p></sidenote> as if included in the enactment of section 402 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.</content> </subsection> </section> </level> </level> </chapter> <chapter> <num value="7">CHAPTER 7</num> <heading>CONGRESSIONAL OPERATIONS</heading> <subheading>SENATE</subheading> <appropriations level="intermediate"> <heading>Contingent Expenses of the Senate</heading> <appropriations level="small"> <heading>secretary of the senate</heading> <subheading>(transfer of funds)</subheading> <content>For an additional amount for expenses of the “Office of the Secretary of the Senate”, to carry out the provisions of section 8 of the Legislative Branch Appropriations Act, 1997, $5,000,000, to remain available until September 30, 2000, to be derived by transfer from funds previously appropriated from fiscal year 1997 funds under the heading “SENATE”, subject to the approval of the Committee on Appropriations.</content> </appropriations> </appropriations> <appropriations level="major"> <heading>HOUSE OF REPRESENTATIVES</heading> <appropriations level="intermediate"> <heading>Payments to Widows and Heirs of Deceased Members of Congress</heading> <content>For payment to Marissa, Sonya, and Frank (III) Tejeda, children<sidenote><p class="indent0 firstIndent0 fontsize8">Marissa Tejeda.</p><p class="indent0 firstIndent0 fontsize8">Sonya Tejeda.</p><p class="indent0 firstIndent0 fontsize8">Frank Tejeda, III.</p></sidenote> of Frank Tejeda, late a Representative from the State of Texas, $133,600.<page identifier="/us/stat/111/192">111 STAT. 192</page></content> </appropriations> </appropriations> <appropriations level="major"> <heading>OTHER AGENCY</heading> <appropriations level="intermediate"> <heading>Botanic Garden</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For an additional amount for “Salaries and Expenses, Botanic Garden”, $33,500,000, to remain available until expended, for emergency repair and renovation of the Conservatory.</content> </appropriations> </appropriations> </appropriations> <level> <heading>GENERAL PROVISIONS, CHAPTER 7</heading> <section> <num value="7001"><inline class="smallCaps">Sec</inline>. 7001.</num> <content class="inline">Section 105(f) of the Legislative Branch Appropriation Act, 1968 (2 U.S.C. 61–1(f)) is amended by adding at the end the following: “<quotedText>The limitation on the minimum rate of gross compensation under this subsection shall not apply to any member or civilian employee of the Capitol Police whose compensation is disbursed by the Secretary of the Senate.</quotedText>”.</content> </section> <section> <num value="7002"><inline class="smallCaps">Sec</inline>. 7002.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s59">2 USC 59–1</ref>.</p></sidenote> <subsection class="inline"><num value="a">(a)</num> <content>Notwithstanding any other provision of law or regulation, with the approval of the Committee on Rules and Administration of the Senate, the Sergeant at Arms and Doorkeeper of the Senate is authorized to provide additional facilities, services, equipment, and office space for use by a Senator in that Senator’s State in connection with a disaster or emergency declared by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act. Expenses incurred by the Sergeant at Arms and Doorkeeper of the Senate under this section shall be paid from the appropriation account, within the contingent fund of the Senate, for expenses of the Office of the Sergeant at Arms and Doorkeeper of the Senate, upon vouchers signed by the Sergeant at Arms and Doorkeeper of the Senate with the approval of the Committee on Rules and Administration of the Senate.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> <content>This section is effective on and after the date of enactment of this Act.</content> </subsection> </section> <section> <num value="7003"><inline class="smallCaps">Sec</inline>. 7003.</num> <subsection class="inline"><num value="a">(a)</num> <content>Section 2 of Public Law 100–71 (2 U.S.C. 65f) is amended by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <content>Upon the written request of the Secretary of the Senate, with the approval of the Committee on Appropriations of the Senate, there shall be transferred any amount of funds available under subsection (a) specified in the request, but not to exceed $10,000 in any fiscal year, from the appropriation account (within the contingent fund of the Senate) for expenses of the Office of the Secretary of the Senate to the appropriation account for the expense allowance of the Secretary of the Senate. Any funds so transferred shall be available in like manner and for the same purposes as are other funds in the account to which the funds are transferred.”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s65/f">2 USC 65f note</ref>.</p></sidenote> <content>The amendment made by subsection (a) shall be effective with respect to appropriations for fiscal years beginning on or after October 1, 1996.</content> </subsection> </section> <section> <num value="7004"><inline class="smallCaps">Sec</inline>. 7004.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t41/s253/l">41 USC 253<i>l</i>–1</ref>.</p></sidenote> <content class="inline">The Comptroller General may use available funds, now and hereafter, to enter into contracts for the acquisition of severable services for a period that begins in one fiscal year and ends in the next fiscal year and to enter in multiyear contracts for the acquisition of property and nonaudit-related services, to the same extent as executive agencies under the authority of sections 303L and 304B, respectively, of the Federal Property and Administrative Services Act (41 U.S.C. 2531 and 254c).<page identifier="/us/stat/111/193">111 STAT. 193</page></content> </section> </level> </chapter> <chapter> <num value="8">CHAPTER 8</num> <heading>DEPARTMENT OF TRANSPORTATION</heading> <appropriations level="intermediate"> <heading>Coast Guard</heading> <appropriations level="small"> <heading>operating expenses</heading> <content>For an additional amount for “Operating Expenses”, $1,600,000, for necessary expenses directly related to support activities in the TWA Flight 800 crash investigation, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>retired pay</heading> <content>For an additional amount for “Retired Pay”, $9,200,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Federal Highway Administration</heading> <subheading>federal-aid highways</subheading> <appropriations level="small"> <heading>emergency relief program</heading> <subheading>(highway trust fund)</subheading> <content>For an additional amount for the Emergency Relief Program for emergency expenses resulting from flooding and other natural disasters, as authorized by 23 U.S.C. 125, $650,000,000, to be derived from the Highway Trust Fund and to remain available until expended: <proviso><i>Provided,</i> That the entire amount is designated by the Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended:</proviso> <proviso><i>Provided further,</i> That 23 U.S.C. 125(b)(1) shall not apply to projects resulting from the December 1996 and January 1997 flooding in the western States.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>federal-aid highways</heading> <appropriations level="small"> <heading>(limitation on obligations)</heading> <subheading>(highway trust fund)</subheading> <content>The limitation under this heading in Public Law 104–205 is increased by $694,810,534: <proviso><i>Provided,</i> That such additional authority shall remain available during fiscal year 1997:</proviso> <proviso><i>Provided further,</i> That notwithstanding any other provision of law, the authority provided herein above shall be distributed to ensure that States receive an amount they would have received had the Highway Trust Fund fiscal year 1994 income statement not been understated prior to the revision on December 24, 1996:</proviso> <proviso><i>Provided further,</i> That notwithstanding any other provision of law, $318,077,043 of the amount provided herein above shall be distributed to assure that States receive obligation authority that they would have received had the Highway Trust Fund fiscal year 1995 income statement not been revised on December 24, 1996:</proviso> <proviso><i>Provided further,</i> That the remaining authority provided herein above shall be distributed to those States whose share of Federal-aid obligation limitation under section 310 of Public Law 104–205 is less than the amount such States received under section 310(a) of Public Law 104–50 in fiscal year 1996 in a ratio equal to the amounts necessary <page identifier="/us/stat/111/194">111 STAT. 194</page>to bring each such State to the Federal-aid obligation limitation distributed under section 310(a) of Public Law 104–50.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Federal Railroad Administration</heading> <appropriations level="small"> <heading>emergency railroad rehabilitation and repair</heading> <content>For necessary expenses to repair and rebuild freight rail lines of regional and short line railroads or a State entity damaged by floods, $18,900,000, to be awarded subject to the discretion of the Secretary on a case-by-case basis: <proviso><i>Provided,</i> That up to $900,000 shall be solely for damage incurred in West Virginia in September 1996 and $18,000,000 shall be solely for damage incurred in the Northern Plains States in March and April 1997:</proviso> <proviso><i>Provided further,</i> That funds provided under this head shall be available for rehabilitation of railroad rights-of-way, bridges, and other facilities which are part of the general railroad system of transportation, and primarily used by railroads to move freight traffic:</proviso> <proviso><i>Provided further,</i> That railroad rights-of-way, bridges, and other facilities owned by class I railroads are not eligible for funding under this head unless the rights-of-way, bridges or other facilities are under contract lease to a class II or class III railroad under which the lessee is responsible for all maintenance costs of the line:</proviso> <proviso><i>Provided further,</i> That railroad rights-of-way, bridges and other facilities owned by passenger railroads, or by tourist, scenic, or historic railroads are not eligible for funding under this head:</proviso> <proviso><i>Provided further,</i> That these funds shall be available only to the extent an official budget request, for a specific dollar amount, that includes designation of the entire amount as an emergency requirement as defined in the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, is transmitted by the President to the Congress:</proviso> <proviso><i>Provided further,</i> That the entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended:</proviso> <proviso><i>Provided further,</i> That all funds made available under this head are to remain available until September 30, 1997.</proviso></content> </appropriations> </appropriations> <appropriations level="major"> <heading>RELATED AGENCY</heading> <appropriations level="intermediate"> <heading>National Transportation Safety Board</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For an additional amount for “Salaries and Expenses”, for emergency expenses resulting from the crashes of TWA Flight 800, ValuJet Flight 592, and Comair Flight 3272, and for assistance to families of victims of aviation accidents as authorized by Public Law 104–264, $29,859,000, of which $4,877,000 shall remain available until expended: <proviso><i>Provided,</i> That these funds shall be available only to the extent an official budget request, for a specific dollar amount, that includes designation of the entire amount as an emergency requirement as defined in the Balanced Budget and <page identifier="/us/stat/111/195">111 STAT. 195</page>Emergency Deficit Control Act of 1985, as amended, is transmitted by the President to the Congress:</proviso> <proviso><i>Provided further,</i> That the entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended:</proviso> <proviso><i>Provided further,</i> That notwithstanding any other provision of law, not more than $10,330,000 shall be provided by the National Transportation Safety Board to the Department of the Navy as reimbursement for costs incurred in connection with recovery of wreckage from TWA Flight 800 and shall be credited to the appropriation contained in the Omnibus Consolidated Appropriations Act, 1997, which is available for the same purpose as the appropriation originally charged for the expense for which the reimbursements are received, to be merged with, and to be available for the same purpose as the appropriation to which such reimbursements are credited:</proviso> <proviso><i>Provided further,</i> That notwithstanding any other provision of law, of the amount provided to the National Transportation Safety Board, not more than $6,059,000 shall be made available to the State of New York and local counties in New York, as reimbursement for costs incurred in connection with the crash of TWA Flight 800:</proviso> <proviso><i>Provided further,</i> That notwithstanding any other provision of law, of the amount provided, not more than $3,100,000 shall be made available to Metropolitan Dade County, Florida as reimbursement for costs incurred in connection with the crash of ValuJet Flight 592:</proviso> <proviso><i>Provided further,</i> That notwithstanding any other provision of law, of the amount provided, not more than $300,000 shall be made available to Monroe County, Michigan as reimbursement for costs incurred in connection with the crash of Comair Flight 3272.</proviso></content> </appropriations> </appropriations> </appropriations> <level> <heading>GENERAL PROVISIONS, CHAPTER 8</heading> <section> <num value="8001"><inline class="smallCaps">Sec</inline>. 8001.</num> <content class="inline">Title I of the Department of Transportation and Related Agencies Appropriations Act, 1997 (Public Law 104–205) is amended under the heading “Federal Transit Administration-Discretionary Grants” by striking “<quotedText>$661,000,000</quotedText>” and inserting<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/110/2964">110 Stat. 2964</ref>.</p></sidenote> “$661,000”.</content> </section> <section> <num value="8002"><inline class="smallCaps">Sec</inline>. 8002.</num> <content class="inline">Section 325 of title III of the Department of Transportation and Related Agencies Appropriations Act, 1997 (Public Law 104–205) is amended by deleting all text following:<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/110/2973">110 Stat. 2973</ref>.</p></sidenote> “<proviso><i>Provided,</i> That such funds shall not be subject to the obligation limitation for Federal-aid highways and highway safety construction</proviso>”.</content> </section> <section> <num value="8003"><inline class="smallCaps">Sec</inline>. 8003.</num> <content class="inline">Section 410(j) of title 23, United States Code, is amended by striking the period after “1997” and inserting “<quotedText>, and an additional $500,000 for fiscal year 1997.</quotedText>”.</content> </section> <section> <num value="8004"><inline class="smallCaps">Sec</inline>. 8004.</num> <content class="inline">Section 30308(a) of title 49, United States Code, is amended by striking “<quotedText>and 1996</quotedText>” and inserting “<quotedText>, 1996, and 1997</quotedText>”.</content> </section> </level> </chapter> <chapter> <num value="9">CHAPTER 9</num> <heading>DEPARTMENT OF THE TREASURY</heading> <appropriations level="intermediate"> <heading>Departmental Offices</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For an additional amount under the heading “Departmental Offices, Salaries and Expenses”, $1,950,000: <proviso><i>Provided,</i> That the Secretary of the Treasury may utilize the law enforcement services, personnel, equipment, and facilities of the State of Colorado, the <page identifier="/us/stat/111/196">111 STAT. 196</page>County of Denver, and the City of Denver, with their consent, and shall reimburse the State of Colorado, the County of Denver, and the City of Denver for the utilization of such law enforcement services, personnel (for salaries, overtime, and benefits), equipment, and facilities for security arrangements for the Denver Summit of Eight being held June 20 through June 22, 1997, in Denver, Colorado subject to verification of appropriate costs.</proviso></content> </appropriations> </appropriations> <appropriations level="major"> <heading>COUNTER-TERRORISM AND DRUG LAW ENFORCEMENT</heading> <subheading>DEPARTMENT OF THE TREASURY</subheading> <appropriations level="intermediate"> <heading>United States Customs Service</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>Of the funds made available under this heading in Public Law 104–208, $16,000,000 shall be available until September 30, 1998 to develop further the Automated Targeting System.</content> </appropriations> </appropriations> </appropriations> <appropriations level="major"> <heading>U.S. POSTAL SERVICE</heading> <appropriations level="intermediate"> <heading>Payment to the Postal Service Fund</heading> <content>For an additional amount for the Postal Service Fund for revenue forgone on free and reduced rate mail, pursuant to subsection (d) of section 2401 of title 39, United States Code, $5,383,000.</content> </appropriations> </appropriations> <level> <heading>GENERAL PROVISIONS, CHAPTER 9</heading> <section> <num value="9001"><inline class="smallCaps">Sec</inline>. 9001.</num> <content class="inline">The Administrator of General Services is authorized to obligate the funds appropriated in Public Law 104–208 for construction of the Montgomery, Alabama courthouse.</content> </section> <section> <num value="9002"><inline class="smallCaps">Sec</inline>. 9002.</num> <content class="inline">None of the funds appropriated or made available in this Act or any other Act may be used by the General Services Administration to implement section 1555 of the Federal Acquisition Streamlining Act of 1994 (Public Law 103–355) prior to the date of adjournment of the first session of the 105th Congress.</content> </section> <section> <num value="9003"><inline class="smallCaps">Sec</inline>. 9003.</num> <subsection class="inline"><num value="a">(a)</num> <content>The Bureau of Engraving and Printing and the Department of the Treasury shall not award a contract for Solicitation No. BEP–97–13(TN) or Solicitation No. BEP–96–13(TN) until the General Accounting Office (GAO) has completed a comprehensive analysis of the optimum circumstances for government <sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote>procurement of distinctive currency paper. The GAO shall report its findings to the House and Senate Committees on Appropriations no later than August 1, 1998.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>The contractual term of the distinctive currency paper “bridge” contract shall not exceed 24 months, and the contract shall not be effective until the Secretary of the Department of the Treasury certifies that the price under the terms of any “bridge” contract is fair and reasonable and that the terms of any “bridge” contract are customary and appropriate according to Federal <sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote>procurement regulations. In addition, the Secretary of the Treasury shall report to the Committees on Appropriations on the price and profit levels of any “bridge” contract at the time of certification.</content> </subsection> </section> <section> <num value="9004"><inline class="smallCaps">Sec</inline>. 9004.</num> <subsection class="inline"><num value="a">(a)</num> <content>Chapter 63 of title 5, United States Code, is amended by adding after subchapter V the following:<page identifier="/us/stat/111/197">111 STAT. 197</page> <quotedContent> <subchapter> <num value="VI">“SUBCHAPTER VI—</num><heading>LEAVE TRANSFER IN DISASTERS AND EMERGENCIES</heading> <section> <num value="6391">“§ 6391.</num> <heading>Authority for leave transfer program in disasters and emergencies</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <chapeau>For the purpose of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>‘employee’ means an employee as defined in section 6331(1); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>‘agency’ means an Executive agency.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <content>In the event of a major disaster or emergency, as declared by the President, that results in severe adverse effects for a substantial number of employees, the President may direct the Office of Personnel Management to establish an emergency leave transfer program under which any employee in any agency may donate unused annual leave for transfer to employees of the same or other agencies who are adversely affected by such disaster or emergency.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <content>The Office shall establish appropriate requirements for the operation of the emergency leave transfer program under subsection (b), including appropriate limitations on the donation and use of annual leave under the program. An employee may receive and use leave under the program without regard to any requirement that any annual leave and sick leave to a leave recipient’s credit must be exhausted before any transferred annual leave may be used.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <content>A leave bank established under subchapter IV may, to the extent provided in regulations prescribed by the Office, donate annual leave to the emergency leave transfer program established under subsection (b).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <content>Except to the extent that the Office may prescribe by regulation, nothing in section 7351 shall apply to any solicitation, donation, or acceptance of leave under this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <content>The Office shall prescribe regulations necessary for the<sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote> administration of this section.”.</content> </subsection> </section> </subchapter> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>The analysis for chapter 63 of title 5, United States Code, is amended by adding at the end the following: <quotedContent> <toc> <referenceItem role="subchapter"><designator>“SUBCHAPTER VI—</designator><label>LEAVE TRANSFER IN DISASTERS AND EMERGENCIES</label></referenceItem> <referenceItem role="section"><designator>“6391.</designator> <label>Authority for leave transfer program in disasters and emergencies.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> </level> </chapter> <chapter> <num value="10">CHAPTER 10</num> <heading>DEPARTMENT OF VETERANS AFFAIRS</heading> <appropriations level="intermediate"> <heading>Veterans Benefits Administration</heading> <appropriations level="small"> <heading>compensation and pensions</heading> <content>For an additional amount for “Compensation and pensions”, $928,000,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>administrative provision</heading> <content>The Secretary of Veterans Affairs may carry out the construction of a multistory parking garage at the Department of Veterans Affairs medical center in Cleveland, Ohio, in the amount of $12,300,000, and there is authorized to be appropriated for fiscal <page identifier="/us/stat/111/198">111 STAT. 198</page>year 1997 for the Parking Revolving Fund account, a total of $12,300,000 for this project.</content> </appropriations> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT</heading> <appropriations level="intermediate"> <heading>Housing Programs</heading> <appropriations level="small"> <heading>annual contributions for assisted housing</heading> <content>Notwithstanding any other provision of law, of the $1,000,000 appropriated for special purpose grants in Public Law 102–139, for a parking garage in Ashland, Kentucky, $500,000 shall be made available instead for use in acquiring parking in Ashland, Kentucky and $500,000 shall be made available instead for the restoration of the Paramount Theater in Ashland, Kentucky.</content> </appropriations> <appropriations level="small"> <heading>preserving existing housing investment</heading> <content>For an additional amount for “Preserving existing housing investment”, to be made available for use in conjunction with properties that are eligible for assistance under the Low-Income Housing Preservation and Resident Homeownership Act of 1990 or the Emergency Low Income Housing Preservation Act of 1987, $3,500,000, to remain available until expended: <proviso><i>Provided,</i> That up to such amount shall be for a project in Syracuse, New York, the processing for which was suspended, deferred or interrupted for a period of nine months or more because of differing interpretations, by the Secretary of Housing and Urban Development and an owner, concerning the timing of the ability of an uninsured section 236 property to prepay, or by the Secretary and a State rent regulatory agency concerning the effect of a presumptively applicable State rent control law or regulation on the determination of preservation value under section 213 of such Act, if the owner of such project filed a notice of intent to extend the low-income affordability restrictions of the housing on or before August 23, 1993, and the Secretary approved the plan of action on or before July 25, 1996.</proviso></content> </appropriations> <appropriations level="small"> <heading>capacity building for community development and affordable housing</heading> <subheading>(transfer of funds)</subheading> <content>For “Capacity building for community development and affordable housing”, as authorized by section 4 of the HUD Demonstration Act of 1993 (Public Law 103–120), $30,200,000, to remain available until expended, and to be derived by transfer from the Homeownership and Opportunity for People Everywhere Grants account: <proviso><i>Provided,</i> That at least $10,000,000 of the funding under this head be used in rural areas, including tribal areas.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Community Planning and Development</heading> <appropriations level="small"> <heading>community development block grants fund</heading> <content>For an additional amount for “Community development block grants fund”, as authorized under title I of the Housing and Community Development Act of 1974, $500,000,000, of which $250,000,000 shall become available for obligation on October 1, 1997, all of which shall remain available until September 30, 2000, for use <page identifier="/us/stat/111/199">111 STAT. 199</page>only for buyouts, relocation, long-term recovery, and mitigation in communities affected by the flooding in the upper Midwest and other disasters in fiscal year 1997 and such natural disasters designated 30 days prior to the start of fiscal year 1997, except those activities reimbursable or for which funds are made available by the Federal Emergency Management Agency, the Small Business Administration, or the Army Corps of Engineers: <proviso><i>Provided,</i> That in administering these amounts, the Secretary may waive, or specify alternative requirements for, any provision of any statute or regulation that the Secretary administers in connection with the obligation by the Secretary or the use by the recipient of these funds, except for statutory requirements related to civil rights, fair housing and nondiscrimination, the environment, and labor standards, upon a finding that such waiver is required to facilitate the use of such funds, and would not be inconsistent with the overall purpose of the statute:</proviso> <proviso><i>Provided further,</i> That the Secretary of Housing<sidenote><p class="indent0 firstIndent0 fontsize8">Federal Register, publication.</p></sidenote> and Urban Development shall publish a notice in the Federal Register governing the use of community development block grants funds in conjunction with any program administered by the Director of the Federal Emergency Management Agency for buyouts for structures in disaster areas:</proviso> <proviso><i>Provided further,</i> That for any funds under this head used for buyouts in conjunction with any program administered by the Director of the Federal Emergency Management Agency, each State or unit of general local government requesting funds from the Secretary of Housing and Urban Development for buyouts shall submit a plan to the Secretary which must be approved by the Secretary as consistent with the requirements of this program:</proviso> <proviso><i>Provided further,</i> That the Secretary of Housing<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> and Urban Development and the Director of the Federal Emergency Management Agency shall submit quarterly reports to the House and Senate Committees on Appropriations on all disbursements and uses of funds for or associated with buyouts:</proviso> <proviso><i>Provided further,</i> That for purposes of disasters eligible under this head the Secretary of Housing and Urban Development may waive, on a case-by-case basis and upon such other terms as the Secretary may specify, in whole or in part, the requirements that activities benefit persons of low- and moderate-income pursuant to section 122 of the Housing and Community Development Act of 1974, and may waive, in whole or in part, the requirements that housing qualify as affordable housing pursuant to section 290 of the HOME Investment Partnerships Act:</proviso> <proviso><i>Provided further,</i> That the entire amount shall be available only to the extent an official budget request, that includes designation of the entire amount of the request as an emergency requirement as defined by the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, is transmitted by the President to the Congress:</proviso> <proviso><i>Provided further,</i> That the entire amount is designated by the Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Management and Administration</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>Of the funds appropriated under this head in Public Law 104–204,<sidenote><p class="indent0 firstIndent0 fontsize8">Contracts.</p></sidenote> the Secretary of Housing and Urban Development shall enter into a contract with the National Academy of Public Administration not to exceed $1,000,000 no later than one month after enactment <page identifier="/us/stat/111/200">111 STAT. 200</page>of this Act for an evaluation of the Department of Housing and Urban Development’s management systems.</content> </appropriations> </appropriations> </appropriations> <appropriations level="major"> <heading>INDEPENDENT AGENCIES</heading> <appropriations level="intermediate"> <heading>Environmental Protection Agency</heading> <appropriations level="small"> <heading>buildings and facilities</heading> <content>From the amounts appropriated under this heading in prior appropriation Acts for the Center for Ecology Research and Training (CERT), the Environmental Protection Agency (EPA) shall, after the closing of the period for filing CERT-related claims pursuant to the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.), obligate the maximum amount of funds necessary to settle all outstanding CERT-related claims against the EPA pursuant to such Act. To the extent that unobligated balances then remain from such amounts previously appropriated, the EPA is authorized beginning in fiscal year 1997 to make grants to the City of Bay City, Michigan, for the purpose of EPA-approved environmental remediation and rehabilitation of publicly owned real property included in the boundaries of the CERT project.</content> </appropriations> <appropriations level="small"> <heading>state and tribal assistance grants</heading> <content>The funds appropriated in Public Law 104–204 to the Environmental Protection Agency under this heading for grants to States and federally recognized tribes for multimedia or single media pollution prevention, control, and abatement and related activities, $674,207,000, may also be used for the direct implementation by the Federal Government of a program required by law in the absence of an acceptable State or tribal program.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Federal Emergency Management Agency</heading> <appropriations level="small"> <heading>disaster relief</heading> <content>For an additional amount for “Disaster relief”, $3,300,000,000, to remain available until expended: <proviso><i>Provided,</i> That $2,300,000,000 shall become available for obligation on September 30, 1997, but shall not become available until the Director of the Federal Emergency Management Agency submits to the Congress a legislative proposal to control disaster relief expenditures including the elimination of funding for certain revenue producing facilities:</proviso> <proviso><i>Provided further,</i> That of the funds made available under this heading, up to $20,000,000 may be transferred to the Disaster Assistance Direct Loan Program for the cost of direct loans as authorized under section 417 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.):</proviso> <proviso><i>Provided further,</i> That such transfer may be made to subsidize gross obligations for the principal amount of direct loans not to exceed $21,000,000 under section 417 of the Stafford Act:</proviso> <proviso><i>Provided further,</i> That any such transfer of funds shall be made only upon certification by the Director of the Federal Emergency Management Agency that all requirements of section 417 of the Stafford Act will be complied with:</proviso> <proviso><i>Provided further,</i> That the entire amount appropriated herein shall be available only to the extent that an official budget request <page identifier="/us/stat/111/201">111 STAT. 201</page>for a specific dollar amount, that includes designation of the entire amount of the request as an emergency requirement as defined in the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, is transmitted by the President to Congress:</proviso> <proviso><i>Provided further,</i> That the entire amount appropriated herein is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.</proviso></content> </appropriations> </appropriations> </appropriations> <level> <heading>GENERAL PROVISIONS, CHAPTER 10</heading> <section> <num value="10001"><inline class="smallCaps">Sec</inline>. 10001.</num> <content class="inline">The Secretary shall submit semi-annually to the<sidenote><p class="indent0 firstIndent0 fontsize8">Records.</p><p class="indent0 firstIndent0 fontsize8">Contracts.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s3548">42 USC 3548</ref>.</p></sidenote> Committees on Appropriations a list of all contracts and task orders issued under such contracts in excess of $250,000 which were entered into during the prior 6-month period by the Secretary, the Government National Mortgage Association, and the Office of Federal Housing Enterprise Oversight (or by any officer of the Department of Housing and Urban Development, the Government National Mortgage Association, or the Office of Federal Housing Enterprise Oversight acting in his or her capacity to represent the Secretary or these entities). Each listing shall identify the parties to the contract, the term and amount of the contract, and the subject matter and responsibilities of the parties to the contract.</content> </section> <section> <num value="10002"><inline class="smallCaps">Sec</inline>. 10002.</num> <content class="inline">Section 8(c)(9) of the United States Housing Act of 1937 is amended by striking out “Not less than one year prior<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437/f">42 USC 1437f</ref>.</p></sidenote> to terminating any contract” and inserting in lieu thereof: “Not less than 180 days prior to terminating any contract”.</content> </section> <section> <num value="10003"><inline class="smallCaps">Sec</inline>. 10003.</num> <content class="inline">The first sentence of section 542(c)(4) of the Housing and Community Development Act of 1992 is amended by striking<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1707">12 USC 1707 note</ref>.</p></sidenote> out “on not more than 12,000 units during fiscal year 1996” and inserting in lieu thereof: “on not more than 12,000 units during fiscal year 1996 and not more than an additional 7,500 units during fiscal year 1997”.</content> </section> <section> <num value="10004"><inline class="smallCaps">Sec</inline>. 10004.</num> <content class="inline">Section 4(a) and (b)(3) of the HUD Demonstration Act of 1993 is amended by inserting after “<quotedText>National Community<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9816">42 USC 9816 note</ref>.</p></sidenote> Development Initiative</quotedText>”: “, Local Initiatives Support Corporation, The Enterprise Foundation, Habitat for Humanity, and Youthbuild USA”.</content> </section> <section> <num value="10005"><inline class="smallCaps">Sec</inline>. 10005.</num> <content class="inline">Section 234(c) of the National Housing Act is<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1715/y">12 USC 1715y</ref>.</p></sidenote> amended by inserting after “<quotedText>203(b)(2)</quotedText>” the following: “or pursuant to section 203(h) under the conditions described in section 203(h)”.</content> </section> <section> <num value="10006"><inline class="smallCaps">Sec</inline>. 10006.</num> <content class="inline">Section 211(b)(4)(B) of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997 (Public Law 104–204) is amended<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437/f">42 USC 1437f note</ref>.</p></sidenote> by inserting the following at the end: “The term ‘owner’, as used in this subparagraph, in addition to it having the same meaning as in section 8(f) of the United States Housing Act of 1937, also means an affiliate of the owner. The term ‘affiliate of the owner’ means any person or entity (including, but not limited to, a general partner or managing member, or an officer of either) that controls an owner, is controlled by an owner, or is under common control with the owner. The term ‘control’ means the direct or indirect power (under contract, equity ownership, the right to vote or determine a vote, or otherwise) to direct the financial, legal, beneficial, or other interests of the owner.”.<page identifier="/us/stat/111/202">111 STAT. 202</page></content> </section> </level> </chapter> <chapter> <num value="11">CHAPTER 11</num> <heading>OFFSETS AND RESCISSIONS</heading> <subheading>DEPARTMENT OF AGRICULTURE</subheading> <appropriations level="intermediate"> <heading>Office of the Secretary</heading> <appropriations level="small"> <heading>fund for rural america</heading> <content>Of the funds provided on January 1, 1997 for section 793 of Public Law 104–127, Fund for Rural America, not more than $80,000,000 shall be available.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Food and Consumer Service</heading> <appropriations level="small"> <heading>the emergency food assistance program</heading> <content>Notwithstanding section 27(a) of the Food Stamp Act, the amount specified for allocation under such section for fiscal year 1997 shall be $80,000,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Foreign Agricultural Service and General Sales Manager</heading> <appropriations level="small"> <heading>export credit</heading> <content>None of the funds made available in the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1997, Public Law 104–180, may be used to pay the salaries and expenses of personnel to carry out a combined program for export credit guarantees, supplier credit guarantees, and emerging democracies facilities guarantees at a level which exceeds $3,500,000,000.</content> </appropriations> <appropriations level="small"> <heading>export enhancement program</heading> <content>None of the funds appropriated or otherwise made available in Public Law 104–180 shall be used to pay the salaries and expenses of personnel to carry out an export enhancement program if the aggregate amount of funds and/or commodities under such program exceeds $10,000,000.</content> </appropriations> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF JUSTICE</heading> <appropriations level="intermediate"> <heading>General Administration</heading> <appropriations level="small"> <heading>working capital fund</heading> <subheading>(rescission)</subheading> <content>Of the unobligated balances available under this heading, $6,400,000 are rescinded.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Legal Activities</heading> <appropriations level="small"> <heading>assets forfeiture fund</heading> <subheading>(rescission)</subheading> <content>Of the amounts made available to the Attorney General on October 1, 1996, from surplus balances declared in prior years <page identifier="/us/stat/111/203">111 STAT. 203</page>pursuant to 28 U.S.C. 524(c), authority to obligate $3,000,000 of such funds in fiscal year 1997 is rescinded.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Immigration and Naturalization Service</heading> <appropriations level="small"> <heading>construction</heading> <subheading>(rescission)</subheading> <content>Of the unobligated balances under this heading from amounts made available in Public Law 103–317, $1,000,000 are rescinded.</content> </appropriations> </appropriations> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF COMMERCE</heading> <appropriations level="intermediate"> <heading>National Institute of Standards and Technology</heading> <appropriations level="small"> <heading>industrial technology services</heading> <subheading>(rescission)</subheading> <content>Of the unobligated balances available under this heading for the Advanced Technology Program, $7,000,000 are rescinded.</content> </appropriations> </appropriations> </appropriations> <appropriations level="major"> <heading>RELATED AGENCIES</heading> <appropriations level="intermediate"> <heading>Federal Communications Commission</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(rescission)</subheading> <content>Of the unobligated balances available under this heading, $1,000,000 are rescinded.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Ounce of Prevention Council</heading> <subheading>(rescission)</subheading> <content>Of the amounts made available under this heading in Public Law 104–208, $1,000,000 are rescinded.</content> </appropriations> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF ENERGY</heading> <appropriations level="intermediate"> <heading>Energy Programs</heading> <appropriations level="small"> <heading>energy supply, research and development activities</heading> <subheading>(rescission)</subheading> <content>Of the funds made available under this heading in Public Law 104–206 and prior years’ Energy and Water Development Appropriations Acts, $11,180,000 are rescinded.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Clean Coal Technology</heading> <subheading>(rescission)</subheading> <content>Of the funds made available under this heading for obligation in fiscal year 1997 or prior years, $17,000,000 are rescinded: <proviso><i>Provided,</i> That funds made available in previous appropriations Acts <page identifier="/us/stat/111/204">111 STAT. 204</page>shall be available for any ongoing project regardless of the separate request for proposal under which the project was selected.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Strategic Petroleum Reserve</heading> <subheading>(rescission)</subheading> <content>Of the funds made available under this heading in previous appropriations Acts, $11,000,000 are rescinded.</content> </appropriations> <appropriations level="intermediate"> <heading>Power Marketing Administrations</heading> <appropriations level="small"> <heading>construction, rehabilitation, operation and maintenance, western area power administration</heading> <subheading>(rescission)</subheading> <content>Of the funds made available under this heading in Public Law 104–206 and prior years’ Energy and Water Development Appropriations Acts, $11,352,000 are rescinded.</content> </appropriations> </appropriations> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF HEALTH AND HUMAN SERVICES</heading> <appropriations level="intermediate"> <heading>Administration for Children and Families</heading> <appropriations level="small"> <heading>job opportunities and basic skills</heading> <subheading>(rescission)</subheading> <content><p class="indent0 fontsize10">Of the funds made available under this heading in Public Law 104–208, there is rescinded an amount equal to the total of the funds within each State’s limitation for fiscal year 1997 that are not necessary to pay such State’s allowable claims for such fiscal year.</p> <p class="indent0 fontsize10"><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s603">42 USC 603</ref>.</p></sidenote>Section 403(k)(3)(F) of the Social Security Act (as in effect on October 1, 1996) is amended by adding after the the following: “reduced by an amount equal to the total of those funds that are within each State’s limitation for fiscal year 1997 that are not necessary to pay such State’s allowable claims for such fiscal year (except that such amount for such year shall be deemed to be $1,000,000,000 for the purpose of determining the amount of the payment under subsection (1) to which each State is entitled),”.</p> </content></appropriations> </appropriations> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF TRANSPORTATION</heading> <appropriations level="intermediate"> <heading>Federal Aviation Administration</heading> <subheading>grants-in-aid for airports</subheading> <appropriations level="small"> <heading>(airport and airway trust fund)</heading> <subheading>(rescission of contract authorization)</subheading> <content>Of the unobligated balances authorized under 49 U.S.C. 48103 as amended, $750,000,000 are rescinded.<page identifier="/us/stat/111/205">111 STAT. 205</page></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Highway Traffic Safety Administration</heading> <subheading>highway traffic safety grants</subheading> <appropriations level="small"> <heading>(highway trust fund)</heading> <subheading>(rescission of contract authorization)</subheading> <content>Of the available balances of contract authority under this heading, $13,000,000 are rescinded.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Federal Transit Administration</heading> <subheading>trust fund share of expenses</subheading> <appropriations level="small"> <heading>(highway trust fund)</heading> <subheading>(rescission of contract authorization)</subheading> <content>Of the available balances of contract authority under this heading, $271,000,000 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>discretionary grants</heading> <subheading>(highway trust fund)</subheading> <subheading>(rescission of contract authorization)</subheading> <content>Of the available balances of contract authority under this heading, for fixed guideway modernization and bus activities under 49 U.S.C. 5309(m)(A) and (C), $588,000,000 are rescinded.</content> </appropriations> </appropriations> </appropriations> <appropriations level="major"> <heading>INDEPENDENT AGENCY</heading> <appropriations level="intermediate"> <heading>General Services Administration</heading> <appropriations level="small"> <heading>expenses, presidential transition</heading> <subheading>(rescission)</subheading> <content>Of the amounts made available under this heading in Public Law 104–208, $5,600,000 are rescinded.</content> </appropriations> </appropriations> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT</heading> <appropriations level="intermediate"> <heading>Housing Programs</heading> <appropriations level="intermediate"> <heading>annual contributions for assisted housing</heading> <subheading>(including rescission)</subheading> <content>Of the amounts recaptured under this heading during fiscal year 1997 and prior years, $3,650,000,000 are rescinded: <proviso><i>Provided,</i> That the Secretary of Housing and Urban Development shall recapture at least $5,800,000,000 in amounts heretofore maintained as section 8 reserves made available to housing agencies for tenant-based assistance under the section 8 existing housing certificate and housing voucher programs:</proviso> <proviso><i>Provided further,</i> That all additional section 8 reserve funds of an amount not less than $2,150,000,000 and any recaptures (other than funds already designated for other uses) specified in section 214 of Public Law 104–204 shall be preserved under the head “Section 8 Reserve Preservation Account” <page identifier="/us/stat/111/206">111 STAT. 206</page>for use in extending section 8 contracts expiring in fiscal year 1998 and thereafter:</proviso> <proviso><i>Provided further,</i> That the Secretary may recapture less than $5,800,000,000 and reserve less than $2,150,000,000 where the Secretary determines that insufficient section 8 funds are available for current fiscal year contract obligations:</proviso> <proviso><i>Provided further,</i> That the Comptroller General of the United States shall conduct an audit of all accounts of the Department of Housing and Urban Development to determine whether the Department’s systems for budgeting and accounting for section 8 rental assistance ensure that unexpended funds do not reach unreasonable levels and that obligations are spent in a timely manner.</proviso></content> </appropriations> </appropriations> </appropriations> <appropriations level="major"> <heading>INDEPENDENT AGENCY</heading> <appropriations level="intermediate"> <heading>National Aeronautics and Space Administration</heading> <appropriations level="small"> <heading>national aeronautics facilities</heading> <subheading>(rescission)</subheading> <content>Of the funds made available under this heading in Public Law 103–327, $365,000,000 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>funds appropriated to the president</heading> <heading>unanticipated needs</heading> <subheading>(rescission)</subheading> <content>Of the funds made available under this heading in Public Law 103–211 to NASA for “Space flight, control, and data communications”, $4,200,000 are rescinded.</content> </appropriations> </appropriations> </appropriations> </chapter> <num value="III">TITLE III</num> <heading>GENERAL PROVISIONS—THIS ACT</heading> <section> <num value="30001"><inline class="smallCaps">Sec</inline>. 30001.</num> <content class="inline">No part of any appropriation contained in this Act shall remain available for obligation beyond the current fiscal year unless expressly so provided herein.</content> </section> <section> <heading><inline class="smallCaps">buy-american requirements</inline></heading> <num value="30002"><inline class="smallCaps">Sec</inline>. 30002.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Compliance With Buy American Act</inline>.—</heading><content>None of the funds made available in this Act may be expended by an entity unless the entity agrees that in expending the funds the entity will comply with the Buy American Act (41 U.S.C. 10a–10c).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Sense of Congress; Requirement Regarding Notice</inline>.—</heading><paragraph class="inline"><num value="1">(1)</num> <heading><inline class="smallCaps">Purchase of american-made equipment and products</inline>.—</heading><content>In the case of any equipment or product that may be authorized to be purchased with financial assistance provided using funds made available in this Act, it is the sense of the Congress that entities receiving the assistance should, in expending the assistance, purchase only American-made equipment and products.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Notice to recipients of assistance</inline>.—</heading><content>In providing financial assistance using funds made available in this Act, <page identifier="/us/stat/111/207">111 STAT. 207</page>the head of each Federal agency shall provide to each recipient of the assistance a notice describing the statement made in paragraph (1) by the Congress.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Prohibition of Contracts With Persons Falsely Labeling Products as Made in America</inline>.—</heading><content>If it has been finally determined by a court or Federal agency that any person intentionally affixed a label bearing a “Made in America” inscription, or any inscription with the same meaning, to any product sola in or shipped to the United States that is not made in the United States, the person shall be ineligible to receive any contract or subcontract made with funds made available in this Act, pursuant to the debarment, suspension, and ineligibility procedures described in sections 9.400 through 9.409 of title 48, Code of Federal Regulations.</content> </subsection> </section> <section> <num value="30003"><inline class="smallCaps">Sec</inline>. 30003.</num> <content class="inline">The Office of Management and Budget is directed to work with Federal agencies, as appropriate, to support the extension and revision of Federal grants, contracts, and cooperative agreements at universities affected by flooding in designated Federal disaster areas where work on such grants, contracts, and cooperative agreements was suspended as a result of the flood disaster.</content> </section> <num value="IV">TITLE IV—</num><heading>COST OF HIGHER EDUCATION REVIEW</heading><sidenote><p class="indent0 firstIndent0 fontsize8">Cost of Higher Education Review Act of 1997.</p></sidenote> <section> <num value="40001">SEC. 40001.</num> <heading>SHORT TITLE; FINDINGS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Short Title</inline>.—</heading><content>This title may be cited as the “Cost of Higher Education Review Act of 1997”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>The Congress finds the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>According to a report issued by the General Accounting Office, tuition at 4-year public colleges and universities increased 234 percent from school year 1980–1981 through school year 1994–1995, while median household income rose 82 percent and the cost of consumer goods as measured by the Consumer Price Index rose 74 percent over the same time period.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>A 1995 survey of college freshmen found that concern about college affordability was the highest it has been in the last 30 years.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Paying for a college education now ranks as one of the most costly investments for American families.</content></paragraph> </subsection> </section> <section> <num value="40002">SEC. 40002.</num> <heading>ESTABLISHMENT OF NATIONAL COMMISSION ON THE COST OF HIGHER EDUCATION.</heading> <content>There is established a Commission to be known as the “National Commission on the Cost of Higher Education” (hereafter in this title referred to as the “Commission”).</content> </section> <section> <num value="40003">SEC. 40003.</num> <heading>MEMBERSHIP OF COMMISSION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Appointment</inline>.—</heading><chapeau>The Commission shall be composed of 11 members as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Three individuals shall be appointed by the Speaker of the House.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Two individuals shall be appointed by the Minority Leader of the House.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Three individuals shall be appointed by the Majority Leader of the Senate.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>Two individuals shall be appointed by the Minority Leader of the Senate.<page identifier="/us/stat/111/208">111 STAT. 208</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>One individual shall be appointed by the Secretary of Education.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Additional Qualifications</inline>.—</heading><content>Each of the individuals appointed under subsection (a) shall be an individual with expertise and experience in higher education finance (including the financing of State institutions of higher education), Federal financial aid programs, education economics research, public or private higher education administration, or business executives who have managed successful cost reduction programs.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Chairperson and Vice Chairperson</inline>.—</heading><content>The members of the Commission shall elect a Chairperson and a Vice Chairperson. In the absence of the Chairperson, the Vice Chairperson will assume the duties of the Chairperson.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Quorum</inline>.—</heading><content>A majority of the members of the Commission shall constitute a quorum for the transaction of business.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Appointments</inline>.—</heading><chapeau>All appointments under subsection (a) shall be made within 30 days after the date of enactment of this Act. In the event that an officer authorized to make an appointment under subsection (a) has not made such appointment within such 30 days, the appointment may be made for such officer as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>the Chairman of the Committee on Education and the Workforce may act under such subsection for the Speaker of the House of Representatives;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>the Ranking Minority Member of the Committee on Education and the Workforce may act under such subsection for the Minority Leader of the House of Representatives;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>the Chairman of the Committee on Labor and Human Resources may act under such subsection for the Majority Leader of the Senate; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>the Ranking Minority Member of the Committee on Labor and Human Resources may act under such subsection for the Minority Leader of the Senate.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Voting</inline>.—</heading><content>Each member of the Commission shall be entitled to one vote, which shall be equal to the vote of every other member of the Commission.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g)</num> <heading><inline class="smallCaps">Vacancies</inline>.—</heading><content>Any vacancy on the Commission shall not affect its powers, but shall be filled in the manner in which the original appointment was made.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h)</num> <heading><inline class="smallCaps">Prohibition of Additional Pay</inline>.—</heading><content>Members of the Commission shall receive no additional pay, allowances, or benefits by reason of their service on the Commission. Members appointed from among private citizens of the United States may be allowed travel expenses, including per diem, in lieu of subsistence, as authorized by law for persons serving intermittently in the government service to the extent funds are available for such expenses.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="i">(i)</num> <heading><inline class="smallCaps">Initial Meeting</inline>.—</heading><content>The initial meeting of the Commission shall occur within 40 days after the date of enactment of this Act.</content> </subsection> </section> <section> <num value="40004">SEC. 40004.</num> <heading>FUNCTIONS OF COMMISSION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Specific Findings and Recommendations</inline>.—</heading><chapeau>The Commission shall study and make findings and specific recommendations regarding the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>The increase in tuition compared with other commodities and services.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Innovative methods of reducing or stabilizing tuition.<page identifier="/us/stat/111/209">111 STAT. 209</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Trends in college and university administrative costs, including administrative staffing, ratio of administrative staff to instructors, ratio of administrative staff to students, remuneration of administrative staff, and remuneration of college and university presidents or chancellors.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>Trends in (A) faculty workload and remuneration (including the use of adjunct faculty), (B) faculty-to-student ratios, (C) number of hours spent in the classroom by faculty, and (D) tenure practices, and the impact of such trends on tuition.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>Trends in (A) the construction and renovation of academic and other collegiate facilities, and (B) the modernization of facilities to access and utilize new technologies, and the impact of such trends on tuition.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>The extent to which increases in institutional financial aid and tuition discounting have affected tuition increases, including the demographics of students receiving such aid, the extent to which such aid is provided to students with limited need in order to attract such students to particular institutions or major fields of study, and the extent to which Federal financial aid, including loan aid, has been used to offset such increases.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <content>The extent to which Federal, State, and local laws, regulations, or other mandates contribute to increasing tuition, and recommendations on reducing those mandates.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8)</num> <content>The establishment of a mechanism for a more timely and widespread distribution of data on tuition trends and other costs of operating colleges and universities.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9)</num> <content>The extent to which student financial aid programs have contributed to changes in tuition.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10)</num> <content>Trends in State fiscal policies that have affected college costs.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="11">(11)</num> <content>The adequacy of existing Federal and State financial aid programs in meeting the costs of attending colleges and universities.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="12">(12)</num> <content>Other related topics determined to be appropriate by the Commission.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Final Report</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subject to paragraph (2), the Commission shall submit to the President and to the Congress, not later than 120 days after the date of the first meeting of the Commission, a report which shall contain a detailed statement of the findings and conclusions of the Commission, including the Commission’s recommendations for administrative and legislative action that the Commission considers advisable.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Majority vote required for recommendations</inline>.—</heading><content>Any recommendation described in paragraph (1) shall be made by the Commission to the President and to the Congress only if such recommendation is adopted by a majority vote of the members of the Commission who are present and voting.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Evaluation of different circumstances</inline>.—</heading><content>In making any findings under subsection (a) of this section, the Commission shall take into account differences between public and private colleges and universities, the length of the academic program, the size of the institution’s student population, and the availability of the institution’s resources, including the size of the institution’s endowment.<page identifier="/us/stat/111/210">111 STAT. 210</page></content></paragraph> </subsection> </section> <section> <num value="40005">SEC. 40005.</num> <heading>POWERS OF COMMISSION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Hearings</inline>.—</heading><content>The Commission may, for the purpose of carrying out this title, hold such hearings and sit and act at such times and places, as the Commission may find advisable.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Rules and Regulations</inline>.—</heading><content>The Commission may adopt such rules and regulations as may be necessary to establish the Commission’s procedures and to govern the manner of the Commission’s operations, organization, and personnel.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Assistance From Federal Agencies</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Information</inline>.—</heading><content>The Commission may request from the head of any Federal agency or instrumentality such information as the Commission may require for the purpose of this title. Each such agency or instrumentality shall, to the extent permitted by law and subject to the exceptions set forth in section 552 of title 5, United States Code (commonly referred to as the Freedom of Information Act), furnish such information to the Commission, upon request made by the Chairperson of the Commission.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Facilities and services, personnel detail authorized</inline>.—</heading><chapeau>Upon request of the Chairperson of the Commission, the head of any Federal agency or instrumentality shall, to the extent possible and subject to the discretion of such head—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>make any of the facilities and services of such agency or instrumentality available to the Commission; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>detail any of the personnel of such agency or instrumentality to the Commission, on a nonreimbursable basis, to assist the Commission in carrying out the Commission’s duties under this title.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Mails</inline>.—</heading><content>The Commission may use the United States mails in the same manner and under the same conditions as other Federal agencies.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Contracting</inline>.—</heading><content>The Commission, to such extent and in such amounts as are provided in appropriation Acts, may enter into contracts with State agencies, private firms, institutions, and individuals for the purpose of conducting research or surveys necessary to enable the Commission to discharge the Commission’s duties under this title.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Staff</inline>.—</heading><content>Subject to such rules and regulations as may be adopted by the Commission, and to such extent and in such amounts as are provided in appropriation Acts, the Chairperson of the Commission shall have the power to appoint, terminate, and fix the compensation (without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, and without regard to the provisions of chapter 51 and subchapter III of chapter 53 of such title, or of any other provision, or of any other provision of law, relating to the number, classification, and General Schedule rates) of an Executive Director, and of such additional staff as the Chairperson deems advisable to assist the Commission, at rates not to exceed a rate equal to the maximum rate for level IV of the Executive Schedule under section 5332 of such title.</content> </subsection> </section> <section> <num value="40006">SEC. 40006.</num> <heading>FUNDING OF COMMISSION.</heading> <content>There is authorized to be appropriated for fiscal year 1997 for carrying out this title, $650,000, to remain available until <page identifier="/us/stat/111/211">111 STAT. 211</page>expended, or until one year after the termination of the Commission pursuant to section 40007, whichever occurs first.</content> </section> <section> <num value="40007">SEC. 40007.</num> <heading>TERMINATION OF COMMISSION.</heading> <content>The Commission shall cease to exist on the date that is 60 days after the date on which the Commission is required to submit its final report in accordance with section 40004(b).</content> </section> <num value="V">TITLE V—</num><heading>DEPOSITORY INSTITUTION DISASTER RELIEF</heading><sidenote><p class="indent0 firstIndent0 fontsize8">Depository Institutions Disaster Relief Act of 1997.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1811">12 USC 1811 note</ref>.</p></sidenote> <section> <num value="50001">SEC. 50001.</num> <heading>SHORT TITLE.</heading> <content>This title may be cited as the “Depository Institutions Disaster Relief Act of 1997”.</content> </section> <section> <num value="50002">SEC. 50002.</num> <heading>TRUTH IN LENDING ACT; EXPEDITED FUNDS AVAILABILITY ACT.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s4008">12 USC 4008 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Truth in Lending Act</inline>.—</heading><content>During the 240-day period beginning on the date of enactment of this Act, the Board of Governors of the Federal Reserve System may make exceptions to the Truth in Lending Act for transactions within an area in which the President, pursuant to section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, has determined, on or after February 28, 1997, that a major disaster exists, or within an area determined to be eligible for disaster relief under other Federal law by reason of damage related to the 1997 flooding of the Red River of the North, the Minnesota River, and the tributaries of such rivers, if the Board determines that the exception can reasonably be expected to alleviate hardships to the public resulting from such disaster that outweigh possible adverse effects.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Expedited Funds Availability Act</inline>.—</heading><content>During the 240-day period beginning on the date of enactment of this Act, the Board of Governors of the Federal Reserve System may make exceptions to the Expedited Funds Availability Act for depository institution offices located within any area referred to in subsection (a) of this section if the Board determines that the exception can reasonably be expected to alleviate hardships to the public resulting from such disaster that outweigh possible adverse effects.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Time Limit on Exceptions</inline>.—</heading><content>Any exception made under this section shall expire not later than September 1, 1998.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Publication Required</inline>.—</heading><chapeau>The Board of Governors of the<sidenote><p class="indent0 firstIndent0 fontsize8">Federal Register, publication.</p></sidenote> Federal Reserve System shall publish in the Federal Register a statement that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>describes any exception made under this section; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>explains how the exception can reasonably be expected to produce benefits to the public that outweigh possible adverse effects.</content></paragraph> </subsection> </section> <section> <num value="50003">SEC. 50003.</num> <heading>DEPOSIT OF INSURANCE PROCEEDS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1831o">12 USC 1831<i>o</i> note.</ref></p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>The appropriate Federal banking agency may, by order, permit an insured depository institution to subtract from the institution’s total assets, in calculating compliance with the leverage limit prescribed under section 38 of the Federal Deposit Insurance Act, an amount not exceeding the qualifying amount attributable to insurance proceeds, if the agency determines that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>the institution—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>had its principal place of business within an area in which the President, pursuant to section 401 of the <page identifier="/us/stat/111/212">111 STAT. 212</page>Robert T. Stafford Disaster Relief and Emergency Assistance Act, has determined, on or after February 28, 1997, that a major disaster exists, or within an area determined to be eligible for disaster relief under other Federal law by reason of damage related to the 1997 flooding of the Red River of the North, the Minnesota River, and the tributaries of such rivers, on the day before the date of any such determination;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>derives more than 60 percent of its total deposits from persons who normally reside within, or whose principal place of business is normally within, areas of intense devastation caused by the major disaster;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>was adequately capitalized (as defined in section 38 of the Federal Deposit Insurance Act) before the major disaster; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>has an acceptable plan for managing the increase in its total assets and total deposits; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>the subtraction is consistent with the purpose of section 38 of the Federal Deposit Insurance Act.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Time Limit on Exceptions</inline>.—</heading><content>Any exception made under this section shall expire not later than February 28, 1999.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Appropriate federal banking agency</inline>.—</heading><content>The term “appropriate Federal banking agency” has the same meaning as in section 3 of the Federal Deposit Insurance Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Insured depository institution</inline>.—</heading><content>The term “insured depository institution” has the same meaning as in section 3 of the Federal Deposit Insurance Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Leverage limit</inline>.—</heading><content>The term “leverage limit” has the same meaning as in section 38 of the Federal Deposit Insurance Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Qualifying amount attributable to insurance proceeds</inline>.—</heading><content>The term “qualifying amount attributable to insurance proceeds” means the amount (if any) by which the institution’s total assets exceed the institution’s average total assets during the calendar quarter ending before the date of any determination referred to in subsection (a)(1)(A), because of the deposit of insurance payments or governmental assistance made with respect to damage caused by, or other costs resulting from, the major disaster.</content></paragraph> </subsection> </section> <section> <num value="50004">SEC. 50004.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1828">12 USC 1828 note</ref>.</p></sidenote> <heading>BANKING AGENCY PUBLICATION REQUIREMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>A qualifying regulatory agency may take any of the following actions with respect to depository institutions or other regulated entities whose principal place of business is within, or with respect to transactions or activities within, an area in which the President, pursuant to section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, has determined, on or after February 28, 1997, that a major disaster exists, or within an area determined to be eligible for disaster relief under other Federal law by reason of damage related to the 1997 flooding of the Red River of the North, the Minnesota River, and the tributaries of such rivers, if the agency determines that the action would facilitate recovery from the major disaster:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Procedure</inline>.—</heading><chapeau>Exercising the agency’s authority under provisions of law other than this section without complying with—<page identifier="/us/stat/111/213">111 STAT. 213</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>any requirement of section 553 of title 5, United States Code; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>any provision of law that requires notice or opportunity for hearing or sets maximum or minimum time limits with respect to agency action.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Publication requirements</inline>.—</heading><chapeau>Making exceptions, with respect to institutions or other entities for which the agency is the primary Federal regulator, to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>any publication requirement with respect to establishing branches or other deposit-taking facilities; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>any similar publication requirement.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Publication Required</inline>.—</heading><chapeau>A qualifying regulatory agency<sidenote><p class="indent0 firstIndent0 fontsize8">Federal Register, publication.</p></sidenote> shall publish in the Federal Register a statement that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>describes any action taken under this section; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>explains the need for the action.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Qualifying Regulatory Agency Defined</inline>.—</heading><chapeau>For purposes of this section, the term “qualifying regulatory agency” means—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>the Board of Governors of the Federal Reserve System;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>the Comptroller of the Currency;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>the Director of the Office of Thrift Supervision;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>the Federal Deposit Insurance Corporation;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>the Financial Institutions Examination Council;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>the National Credit Union Administration; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <content>with respect to chapter 53 of title 31, United States Code, the Secretary of the Treasury.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Expiration</inline>.—</heading><content>Any exception made under this section shall expire not later than February 28, 1998.</content> </subsection> </section> <section> <num value="50005">SEC. 50005.</num> <heading>SENSE OF THE CONGRESS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Financial Services</inline>.—</heading><content>It is the sense of the Congress that the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Director of the Office of Thrift Supervision, the Federal Deposit Insurance Corporation, and the National Credit Union Administration should encourage depository institutions to meet the financial services needs of their communities and customers located in areas affected by the 1997 flooding of the Red River of the North, the Minnesota River, and the tributaries of such rivers.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Appraisal Standards</inline>.—</heading><content>It is the sense of the Congress that each Federal financial institutions regulatory agency should, by regulation or order, make exceptions to the appraisal standards prescribed by title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3331 et seq.) for transactions involving institutions for which the agency is the primary Federal regulator with respect to real property located within a disaster area pursuant to section 1123 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3352), if the agency determines that the exceptions can reasonably be expected to alleviate hardships to the public resulting from such disaster that outweigh possible adverse effects.</content> </subsection> </section> <section> <num value="50006">SEC. 50006.</num> <heading>OTHER AUTHORITY NOT AFFECTED.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1811">12 USC 1811 note</ref>.</p></sidenote> <content>No provision of this title shall be construed as limiting the authority of any department or agency under any other provision of law.<page identifier="/us/stat/111/214">111 STAT. 214</page></content> </section> <num value="VI">TITLE VI—</num><heading>TECHNICAL AMENDMENTS WITH RESPECT TO EDUCATION</heading> <section> <num value="60001">SEC. 60001.</num> <heading>TECHNICAL AMENDMENTS RELATING TO DISCLOSURES REQUIRED WITH RESPECT TO GRADUATION RATES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Amendments</inline>.—</heading><chapeau>Section 485 of the Higher Education Act of 1965 (20 U.S.C. 1092) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subsection (a)(3)(B), by striking “<quotedText>June 30</quotedText>” and inserting “<quotedText>August 31</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subsection (e)(9), by striking “<quotedText>August 30</quotedText>” and inserting “<quotedText>August 31</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1092">20 USC 1092 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in paragraph (2), the amendments made by subsection (a) are effective upon enactment.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Information dissemination</inline>.—</heading><content>No institution shall be required to comply with the amendment made by subsection (a)(1) before July 1, 1998.</content></paragraph> </subsection> </section> <section> <num value="60002">SEC. 60002.</num> <heading>DATE EXTENSION.</heading> <content>Section 1501(a)(4) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6491(a)(4)) is amended by striking “<quotedText>January 1, 1998</quotedText>” and inserting “<quotedText>January 1, 1999</quotedText>”.</content> </section> <section> <num value="60003">SEC. 60003.</num><sidenote><p class="indent0 firstIndent0 fontsize8">Kansas.</p><p class="indent0 firstIndent0 fontsize8">New Mexico.</p></sidenote> <heading>TIMELY FILING OF NOTICE.</heading> <content>Notwithstanding any other provision of law, the Secretary of Education shall deem Kansas and New Mexico to have timely submitted under section 8009(c)(1) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7709(c)(1)) the States’ written notices of intent to consider payments described in section 8009(b)(1) of the Act (20 U.S.C 7709(b)(1)) in providing State aid to local educational agencies for school year 1997–1998, except that the Secretary may require the States to submit such additional information as the Secretary may require, which information shall be considered part of the notices.</content> </section> <section> <num value="60004">SEC. 60004.</num> <heading>HOLD HARMLESS PAYMENTS.</heading> <chapeau>Section 8002(h)(1) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7702(h)(1)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subparagraph (A), by striking “<quotedText>or</quotedText>” after the semicolon;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subparagraph (B), by striking the period and inserting “<quotedText>; and</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>for fiscal year 1997 and each succeeding fiscal year through fiscal year 2000 shall not be less than 85 percent of the amount such agency received for fiscal year 1996 under subsection (b).”.</content></subparagraph> </quotedContent> </content></paragraph> </section> <section> <num value="60005">SEC. 60005.</num> <heading>DATA.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 8003(f)(4) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7703(f)(4)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in subparagraph (A)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by inserting “<quotedText>expenditure,</quotedText>” after “revenue,”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking the semicolon and inserting a period;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<inline class="smallCaps">the Secretary</inline>” and all that follows through “shall use” and inserting “<quotedText>the Secretary shall use</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by striking subparagraph (B).<page identifier="/us/stat/111/215">111 STAT. 215</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by subsection<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s7703">20 USC 7703 note</ref>.</p></sidenote> (a) shall apply with respect to fiscal years after fiscal year 1997.</content> </subsection> </section> <section> <num value="60006">SEC. 60006.</num> <heading>PAYMENTS RELATING TO FEDERAL PROPERTY.</heading> <content>Section 8002(i) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7702(i)) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="i">“(i)</num> <heading><inline class="smallCaps">Priority Payments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Notwithstanding subsection (b)(1)(B), and for any fiscal year beginning with fiscal year 1997 for which the amount appropriated to carry out this section exceeds the amount so appropriated for fiscal year 1996—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the Secretary shall first use the excess amount (not to exceed the amount equal to the difference of (i) the amount appropriated to carry out this section for fiscal year 1997, and (ii) the amount appropriated to carry out this section for fiscal year 1996) to increase the payment that would otherwise be made under this section to not more than 50 percent of the maximum amount determined under subsection (b) for any local educational agency described in paragraph (2); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the Secretary shall use the remainder of the excess amount to increase the payments to each eligible local educational agency under this section.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Local educational agency described</inline>.—</heading><chapeau>A local educational agency described in this paragraph is a local educational agency that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>received a payment under this section for fiscal year 1996;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>serves a school district that contains all or a portion of a United States military academy;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>serves a school district in which the local tax assessor has certified that at least 60 percent of the real property is federally owned; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>demonstrates to the satisfaction of the Secretary that such agency’s per-pupil revenue derived from local sources for current expenditures is not less than that revenue for the preceding fiscal year.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></section> <section> <num value="60007">SEC. 60007.</num> <heading>TIMELY FILING UNDER SECTION 8003.</heading> <chapeau>The Secretary of Education shall treat as timely filed, and shall process for payment, an amendment to an application for a fiscal year 1997 payment from a local educational agency under section 8003 of the Elementary and Secondary Education Act of 1965 if—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>that agency is described in subsection (a)(3) of that section, as amended by section 376 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>that agency was not described in that subsection prior to that amendment; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>the Secretary received the amendment to the agency’s application prior to the enactment of this Act.<page identifier="/us/stat/111/216">111 STAT. 216</page></content></paragraph> </section> <num value="VII">TITLE VII—</num><heading>FOOD STAMP PROGRAM</heading> <level> <heading><inline class="smallCaps">State Option to Issue Food Stamp Benefits to Certain Individuals Made Ineligible by Welfare Reform</inline></heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 7 of the Food Stamp Act of 1977 (7 U.S.C. 2016) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subsection (a), by inserting after “<quotedText>necessary, and</quotedText>” the following: “(except as provided in subsection (j))”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="j">“(j)</num> <heading><inline class="smallCaps">State Option to Issue Benefits to Certain Individuals Made Ineligible by Welfare Reform</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Notwithstanding any other provision of law, a State agency may, with the approval of the Secretary, issue benefits under this Act to an individual who is ineligible to participate in the food stamp program solely as a result of section 6(o)(2) of this Act or section 402 or 403 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612 or 1613).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">State payments to secretary</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Not later than the date the State agency issues benefits to individuals under this subsection, the State agency shall pay the Secretary, in accordance with procedures established by the Secretary, an amount that is equal to—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the value of the benefits; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the costs of printing, shipping, and redeeming coupons, and other Federal costs, incurred in providing the benefits, as determined by the Secretary.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Crediting</inline>.—</heading><content>Notwithstanding section 3302(b) of title 31, United States Code, payments received under subparagraph (A) shall be credited to the food stamp program appropriation account or the account from which the costs were drawn, as appropriate, for the fiscal year in which the payment is received.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Reporting</inline>.—</heading><content>To be eligible to issue benefits under this subsection, a State agency shall comply with reporting requirements established by the Secretary to carry out this subsection.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Plan</inline>.—</heading><chapeau>To be eligible to issue benefits under this subsection, a State agency shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>submit a plan to the Secretary that describes the conditions and procedures under which the benefits will be issued, including eligibility standards, benefit levels, and the methodology the State agency will use to determine amounts due the Secretary under paragraph (2); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>obtain the approval of the Secretary for the plan.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Violations</inline>.—</heading><content>A sanction, disqualification, fine, or other penalty prescribed under Federal law (including sections 12 and 15) shall apply to a violation committed in connection with a coupon issued under this subsection.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Ineligibility for administrative reimbursement</inline>.—</heading><content>Administrative and other costs incurred in issuing a benefit under this subsection shall not be eligible for Federal funding under this Act.<page identifier="/us/stat/111/217">111 STAT. 217</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Exclusion from enhanced payment accuracy systems</inline>.—</heading><content>Section 16(c) shall not apply to benefits issued under this subsection.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><chapeau>Section 17(b)(1)(B)(iv) of the Food Stamp Act of 1977 (7 U.S.C. 2026(b)(1)(B)(iv)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subclause (V), by striking “<quotedText>or</quotedText>” at the end;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subclause (VI), by striking the period at the end and inserting “<quotedText>; or</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by adding at the end the following: <quotedContent> <subclause class="indent4 fontsize10"><num value="VII">“(VII)</num> <content>waives a provision of section 7(j).”.</content></subclause> </quotedContent> </content></paragraph> </subsection> </level> <num value="VIII">TITLE VIII—</num><heading>2000 DECENNIAL CENSUS</heading> <section><chapeau class="indent1 fontsize10">The Department of Commerce is directed within thirty days of enactment of this Act to provide to the Congress a comprehensive and detailed plan outlining its proposed methodologies for conducting the 2000 decennial Census and available methods to conduct an actual enumeration of the population. This plan description shall specifically include:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>a list of all statistical methodologies that may be used in conducting the Census;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>an explanation of these statistical methodologies;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>a list of statistical errors which may occur as a result of the use of each statistical methodology;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>the estimated error rate down to the census tract level;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>a cost estimation showing cost allocations for each census activity plan; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>an analysis of all available options for counting hard-to-enumerate individuals, without utilizing sampling or any other statistical methodology, including efforts like the Milwaukee Complete Count project. The Department of Commerce is also directed within thirty days of enactment of this Act to provide to the Congress an estimate and explanation of the error rate at the census block level based upon the 1995 test data.</content> </paragraph> <continuation class="indent1 fontsize10">This Act may be cited as the “<shortTitle role="act">1997 Emergency Supplemental Appropriations Act for Recovery from Natural Disasters, and for Overseas Peacekeeping Efforts, Including Those in Bosnia</shortTitle>”.</continuation> </section> Approved June 12, 1997.
LEGISLATIVE HISTORY—H.R. 1871: CONGRESSIONAL RECORD, Vol 143 (1997):

June 12, considered and passed House and Senate.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):

June 12, Presidential statement.

 Public Law 105–19: To provide certain protections to volunteers, nonprofit organizations, and governmental entities in lawsuits based on the activities of volunteers. Public Law19 Public Law 105–19 111 Stat. 218 1997-06-18 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 218 Public Law105–19 105th Congress
An Act To provide certain protections to volunteers, nonprofit organizations, and governmental entities in lawsuits based on the activities of volunteers.

June 18, 1997

[S. 543]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Volunteer Protection Act of 1997.

42 USC 14501 note.
SECTION 1. SHORT TITLE. This Act may be cited as the “Volunteer Protection Act of 1997”.
SEC. 2.

42 USC 14501.

 FINDINGS AND PURPOSE. (a) Findings.—The Congress finds and declares that— (1) the willingness of volunteers to offer their services is deterred by the potential for liability actions against them; (2) as a result, many nonprofit public and private organizations and governmental entities, including voluntary associations, social service agencies, educational institutions, and other civic programs, have been adversely affected by the withdrawal of volunteers from boards of directors and service in other capacities; (3) the contribution of these programs to their communities is thereby diminished, resulting in fewer and higher cost programs than would be obtainable if volunteers were participating; (4) because Federal funds are expended on useful and cost-effective social service programs, many of which are national in scope, depend heavily on volunteer participation, and represent some of the most successful public-private partnerships, protection of volunteerism through clarification and limitation of the personal liability risks assumed by the volunteer in connection with such participation is an appropriate subject for Federal legislation; (5) services and goods provided by volunteers and nonprofit organizations would often otherwise be provided by private entities that operate in interstate commerce; (6) due to high liability costs and unwarranted litigation costs, volunteers and nonprofit organizations face higher costs in purchasing insurance, through interstate insurance markets, to cover their activities; and (7) clarifying and limiting the liability risk assumed by volunteers is an appropriate subject for Federal legislation because— (A) of the national scope of the problems created by the legitimate fears of volunteers about frivolous, arbitrary, or capricious lawsuits;111 STAT. 219 (B) the citizens of the United States depend on, and the Federal Government expends funds on, and provides tax exemptions and other consideration to, numerous social programs that depend on the services of volunteers; (C) it is in the interest of the Federal Government to encourage the continued operation of volunteer service organizations and contributions of volunteers because the Federal Government lacks the capacity to carry out all of the services provided by such organizations and volunteers; and (D)(i) liability reform for volunteers, will promote the free flow of goods and services, lessen burdens on interstate commerce and uphold constitutionally protected due process rights; and (ii) therefore, liability reform is an appropriate use of the powers contained in article 1, section 8, clause 3 of the United States Constitution, and the fourteenth amendment to the United States Constitution. (b) Purpose.—The purpose of this Act is to promote the interests of social service program beneficiaries and taxpayers and to sustain the availability of programs, nonprofit organizations, and governmental entities that depend on volunteer contributions by reforming the laws to provide certain protections from liability abuses related to volunteers serving nonprofit organizations and governmental entities.
SEC. 3. PREEMPTION AND ELECTION OF STATE NONAPPLICABILITY.

42 USC 14502.

 (a) Preemption.—This Act preempts the laws of any State to the extent that such laws are inconsistent with this Act, except that this Act shall not preempt any State law that provides additional protection from liability relating to volunteers or to any category of volunteers in the performance of services for a nonprofit organization or governmental entity. (b) Election of State Regarding Nonapplicability.—This Act shall not apply to any civil action in a State court against a volunteer in which all parties are citizens of the State if such State enacts a statute in accordance with State requirements for enacting legislation— (1) citing the authority of this subsection; (2) declaring the election of such State that this Act shall not apply, as of a date certain, to such civil action in the State; and (3) containing no other provisions.
SEC. 4. LIMITATION ON LIABILITY FOR VOLUNTEERS.

42 USC 14503.

 (a) Liability Protection for Volunteers.—Except as provided in subsections (b) and (d), no volunteer of a nonprofit organization or governmental entity shall be liable for harm caused by an act or omission of the volunteer on behalf of the organization or entity if— (1) the volunteer was acting within the scope of the volunteer’s responsibilities in the nonprofit organization or governmental entity at the time of the act or omission; (2) if appropriate or required, the volunteer was properly licensed, certified, or authorized by the appropriate authorities for the activities or practice in the State in which the harm occurred, where the activities were or practice was undertaken 111 STAT. 220within the scope of the volunteer’s responsibilities in the nonprofit organization or governmental entity; (3) file harm was not caused by willful or criminal misconduct, gross negligence, reckless misconduct, or a conscious, flagrant indifference to the rights or safety of the individual harmed by the volunteer; and (4) the harm was not caused by the volunteer operating a motor vehicle, vessel, aircraft, or other vehicle for which the State requires the operator or the owner of the vehicle, craft, or vessel to— (A) possess an operator’s license; or (B) maintain insurance. (b) Concerning Responsibility of Volunteers to Organizations and Entities.—Nothing in this section shall be construed to affect any civil action brought by any nonprofit organization or any governmental entity against any volunteer of such organization or entity. (c) No Effect on Liability of Organization or Entity.—Nothing in this section shall be construed to affect the liability of any nonprofit organization or governmental entity with respect to harm caused to any person. (d) Exceptions to Volunteer Liability Protection.—If the laws of a State limit volunteer liability subject to one or more of the following conditions, such conditions shall not be construed as inconsistent with this section: (1) A State law that requires a nonprofit organization or governmental entity to adhere to risk management procedures, including mandatory training of volunteers. (2) A State law that makes the organization or entity liable for the acts or omissions of its volunteers to the same extent as an employer is liable for the acts or omissions of its employees. (3) A State law that makes a limitation of liability inapplicable if the civil action was brought by an officer of a State or local government pursuant to State or local law. (4) A State law that makes a limitation of liability applicable only if the nonprofit organization or governmental entity provides a financially secure source of recovery for individuals who suffer harm as a result of actions taken by a volunteer on behalf of the organization or entity. A financially secure source of recovery may be an insurance policy within specified limits, comparable coverage from a risk pooling mechanism, equivalent assets, or alternative arrangements that satisfy the State that the organization or entity will be able to pay for losses up to a specified amount. Separate standards for different types of liability exposure may be specified. (e) Limitation on Punitive Damages Based on the Actions of Volunteers.— (1) General rule.—Punitive damages may not be awarded against a volunteer in an action brought for harm based on the action of a volunteer acting within the scope of the volunteer’s responsibilities to a nonprofit organization or governmental entity unless the claimant establishes by clear and convincing evidence that the harm was proximately caused by an action of such volunteer which constitutes willful or criminal misconduct, or a conscious, flagrant indifference to the rights or safety of the individual harmed.111 STAT. 221 (2) Construction.—Paragraph (1) does not create a cause of action for punitive damages and does not preempt or supersede any Federal or State law to the extent that such law would further limit the award of punitive damages. (f) Exceptions to Limitations on Liability.— (1) In general.—The limitations on the liability of a volunteer under this Act shall not apply to any misconduct that— (A) constitutes a crime of violence (as that term is defined in section 16 of title 18, United States Code) or act of international terrorism (as that term is defined in section 2331 of title 18) for which the defendant has been convicted in any court; (B) constitutes a hate crime (as that term is used in the Hate Crime Statistics Act (28 U.S.C. 534 note)); (C) involves a sexual offense, as defined by applicable State law, for which the defendant has been convicted in any court; (D) involves misconduct for which the defendant has been found to have violated a Federal or State civil rights law; or (E) where the defendant was under the influence (as determined pursuant to applicable State law) of intoxicating alcohol or any drug at the time of the misconduct. (2) Rule of construction.—Nothing in this subsection shall be construed to effect subsection (a)(3) or (e).
SEC. 5. LIABILITY FOR NONECONOMIC LOSS.

42 USC 14504.

 (a) General Rule.—In any civil action against a volunteer, based on an action of a volunteer acting within the scope of the volunteer’s responsibilities to a nonprofit organization or governmental entity, the liability of the volunteer for noneconomic loss shall be determined in accordance with subsection (b). (b) Amount of Liability.— (1) In general.—Each defendant who is a volunteer, shall be liable only for the amount of noneconomic loss allocated to that defendant in direct proportion to the percentage of responsibility of that defendant (determined in accordance with paragraph (2)) for the harm to the claimant with respect to which that defendant is liable. The court shall render a separate judgment against each defendant in an amount determined pursuant to the preceding sentence. (2) Percentage of responsibility.—For purposes of determining the amount of noneconomic loss allocated to a defendant who is a volunteer under this section, the trier of fact shall determine the percentage of responsibility of that defendant for the claimant’s harm.
SEC. 6. DEFINITIONS.

42 USC 14505.

 For purposes of this Act: (1) Economic loss.—The term “economic loss” means any pecuniary loss resulting from harm (including the loss of earnings or other benefits related to employment, medical expense loss, replacement services loss, loss due to death, burial costs, and loss of business or employment opportunities) to the extent recovery for such loss is allowed under applicable State law. (2) Harm.—The term “harm” includes physical, nonphysical, economic, and noneconomic losses.111 STAT. 222 (3) Noneconomic losses.—The term “noneconomic losses” means losses for physical and emotional pain, suffering, inconvenience, physical impairment, mental anguish, disfigurement, loss of enjoyment of life, loss of society and companionship, loss of consortium (other than loss of domestic service), hedonic damages, injury to reputation and all other nonpecuniary losses of any kind or nature. (4) Nonprofit organization.—The term “nonprofit organization” means— (A) any organization which is described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code and which does not practice any action which constitutes a hate crime referred to in subsection (b)(1) of the first section of the Hate Crime Statistics Act (28 U.S.C. 534 note); or (B) any not-for-profit organization which is organized and conducted for public benefit and operated primarily for charitable, civic, educational, religious, welfare, or health purposes and which does not practice any action which constitutes a hate crime referred to in subsection (b)(1) of the first section of the Hate Crime Statistics Act (28 U.S.C. 534 note). (5) State.—The term “State” means each of the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Northern Mariana Islands, any other territory or possession of the United States, or any political subdivision of any such State, territory, or possession. (6) Volunteer.—The term “volunteer” means an individual performing services for a nonprofit organization or a governmental entity who does not receive— (A) compensation (other than reasonable reimbursement or allowance for expenses actually incurred); or (B) any other thing of value in lieu of compensation, in excess of $500 per year, and such term includes a volunteer serving as a director, officer, trustee, or direct service volunteer.111 STAT. 223
SEC. 7. EFFECTIVE DATE. (a) In General.—This Act shall take effect 90 days after the date of enactment of this Act. (b) Application.—This Act applies to any claim for harm caused by an act or omission of a volunteer where that claim is filed on or after the effective date of this Act but only if the harm that is the subject of the claim or the conduct that caused such harm occurred after such effective date.
Approved June 18, 1997.
LEGISLATIVE HISTORY—S. 543 (H.R. 911): HOUSE REPORTS: No. 105–101, Pt. 1 (Comm. on the Judiciary) accompanying H.R. 911. CONGRESSIONAL RECORD, Vol. 143 (1997):

May 1, considered and passed Senate.

May 21, considered and passed House, amended, in lieu of H.R. 911. Senate concurred in House amendment.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol 33 (1997):

June 19, Presidential statement.

 Public Law 105–20: To amend the National Narcotics Leadership Act of 1988 to establish a program to support and encourage local communities that first demonstrate a comprehensive, long-term commitment to reduce substance abuse among youth, and for other purposes. Public Law20 Public Law 105–20 111 Stat. 224 1997-06-27 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 224 Public Law105–20 105th Congress
An Act To amend the National Narcotics Leadership Act of 1988 to establish a program to support and encourage local communities that first demonstrate a comprehensive, long-term commitment to reduce substance abuse among youth, and for other purposes.

June 27, 1997

[H.R. 956]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Drug-Free Communities Act of 1997.

21 USC 1501 note.
SECTION 1. SHORT TITLE. This Act may be cited as the “Drug-Free Communities Act of 1997”.
SEC. 2. NATIONAL DRUG CONTROL PROGRAM. (a) In General.—The National Narcotics Leadership Act of 1988 (21 U.S.C. 1501 et seq.) is amended— (1) by inserting between sections 1001 and 1002 the following: “CHAPTER 1—OFFICE OF NATIONAL DRUG CONTROL POLICY”;

and

 (2) by adding at the end the following: “CHAPTER 2—DRUG-FREE COMMUNITIES
“SEC. 1021.

21 USC 1521.

 FINDINGS. “Congress finds the following: “(1) Substance abuse among youth has more than doubled in the 5-year period preceding 1996, with substantial increases in the use of marijuana, inhalants, cocaine, methamphetamine, LSD, and heroin. “(2) The most dramatic increases in substance abuse has occurred among 13- and 14-year-olds. “(3) Casual or periodic substance abuse by youth today will contribute to hard core or chronic substance abuse by the next generation of adults. “(4) Substance abuse is at the core of other problems, such as rising violent teenage and violent gang crime, increasing health care costs, HIV infections, teenage pregnancy, high school dropouts, and lower economic productivity. “(5) Increases in substance abuse among youth are due in large part to an erosion of understanding by youth of the high risks associated with substance abuse, and to the softening of peer norms against use.111 STAT. 225 “(6)(A) Substance abuse is a preventable behavior and a treatable disease; and “(B)(i) during the 13-year period beginning with 1979, monthly use of illegal drugs among youth 12 to 17 years of age declined by over 70 percent; and “(ii) data suggests that if parents would simply talk to their children regularly about the dangers of substance abuse, use among youth could be expected to decline by as much as 30 percent. “(7) Community anti-drug coalitions throughout the United States are successfully developing and implementing comprehensive, long-term strategies to reduce substance abuse among youth on a sustained basis. “(8) Intergovernmental cooperation and coordination through national, State, and local or tribal leadership and partnerships are critical to facilitate the reduction of substance abuse among youth in communities throughout the United States.
“SEC. 1022. PURPOSES.

21 USC 1522.

 “The purposes of this chapter are— “(1) to reduce substance abuse among youth in communities throughout the United States, and over time, to reduce substance abuse among adults; “(2) to strengthen collaboration among communities, the Federal Government, and State, local, and tribal governments; “(3) to enhance intergovernmental cooperation and coordination on the issue of substance abuse among youth; “(4) to serve as a catalyst for increased citizen participation and greater collaboration among all sectors and organizations of a community that first demonstrates a long-term commitment to reducing substance abuse among youth; “(5) to rechannel resources from the fiscal year 1998 Federal drug control budget to provide technical assistance, guidance, and financial support to communities that demonstrate a long-term commitment in reducing substance abuse among youth; “(6) to disseminate to communities timely information regarding the state-of-the-art practices and initiatives that have proven to be effective in reducing substance abuse among youth; “(7) to enhance, not supplant, local community initiatives for reducing substance abuse among youth; and “(8) to encourage the creation of and support for community anti-drug coalitions throughout the United States.
“SEC. 1023. DEFINITIONS.

21 USC 1523.

 “In this chapter: “(1) Administrator.—The term ‘Administrator’ means the Administrator appointed by the Director under section 1031(c). “(2) Advisory commission.—The term ‘Advisory Commission’ means the Advisory Commission established under section 1041. “(3) Community.—The term ‘community’ shall have the meaning provided that term by the Administrator, in consultation with the Advisory Commission. “(4) Director.—The term ‘Director’ means the Director of the Office of National Drug Control Policy.111 STAT. 226 “(5) Eligible coalition.—The term ‘eligible coalition’ means a coalition that meets the applicable criteria under section 1032(a). “(6) Grant recipient.—The term ‘grant recipient’ means the recipient of a grant award under section 1032. “(7) Nonprofit organization.—The term ‘nonprofit organization’ means an organization described under section 501(c)(3) of the Internal Revenue Code of 1986 that is exempt from taxation under section 501(a) of the Internal Revenue Code of 1986. “(8) Program.—The term ‘Program’ means the program established under section 1031(a). “(9) Substance abuse.—The term ‘substance abuse’ means— “(A) the illegal use or abuse of drugs, including substances listed in schedules I through V of section 112 of the Controlled Substances Act (21 U.S.C. 812); “(B) the abuse of inhalants; or “(C) the use of alcohol, tobacco, or other related product as such use is prohibited by State or local law. “(10) Youth.—The term ‘youth’ shall have the meaning provided that term by the Administrator, in consultation with the Advisory Commission.
“SEC. 1024.

21 USC 1524.

 AUTHORIZATION OF APPROPRIATIONS. “(a) In General.—There are authorized to be appropriated to the Office of National Drug Control Policy to carry out this chapter— “(1) $10,000,000 for fiscal year 1998; “(2) $20,000,000 for fiscal year 1999; “(3) $30,000,000 for fiscal year 2000; “(4) $40,000,000 for fiscal year 2001; and “(5) $43,500,000 for fiscal year 2002. “(b) Administrative Costs.—Not more than the following percentages of the amounts authorized under subsection (a) may be used to pay administrative costs: “(1) 10 percent for fiscal year 1998. “(2) 6 percent for fiscal year 1999. “(3) 4 percent for fiscal year 2000. “(4) 3 percent for fiscal year 2001. “(5) 3 percent for fiscal year 2002.
“Subchapter I—Drug-Free Communities Support Program
“SEC. 1031.

21 USC 1531.

 ESTABLISHMENT OF DRUG-FREE COMMUNITIES SUPPORT PROGRAM. “(a) Establishment.—The Director shall establish a program to support communities in the development and implementation of comprehensive, long-term plans and programs to prevent and treat substance abuse among youth. “(b) Program.—In carrying out the Program, the Director shall— “(1)

Grants.

 make and track grants to grant recipients; “(2) provide for technical assistance and training, data collection, and dissemination of information on state-of-the-art practices that the Director determines to be effective in reducing substance abuse; and111 STAT. 227 “(3) provide for the general administration of the Program. “(c) Administration.—Not later than 30 days after receiving recommendations from the Advisory Commission under section 1042(a)(1), the Director shall appoint an Administrator to carry out the Program. “(d) Contracting.—The Director may employ any necessary staff and may enter into contracts or agreements with national drug control agencies, including interagency agreements to delegate authority for the execution of grants and for such other activities necessary to carry out this chapter.
“SEC. 1032. PROGRAM AUTHORIZATION.

21 USC 1532.

 “(a) Grant Eligibility.—To be eligible to receive an initial grant or a renewal grant under this subchapter, a coalition shall meet each of the following criteria: “(1) Application.—The coalition shall submit an application to the Administrator in accordance with section 1033(a)(2). “(2) Major sector involvement.— “(A) In general.—The coalition shall consist of 1 or more representatives of each of the following categories: “(i) Youth. “(ii) Parents. “(iii) Businesses. “(iv) The media. “(v) Schools. “(vi) Organizations serving youth. “(vii) Law enforcement. “(viii) Religious or fraternal organizations. “(ix) Civic and volunteer groups. “(x) Health care professionals. “(xi) State, local, or tribal governmental agencies with expertise in the field of substance abuse (including, if applicable, the State authority with primary authority for substance abuse). “(xii) Other organizations involved in reducing substance abuse. “(B) Elected officials.—If feasible, in addition to representatives from the categories listed in subparagraph (A), the coalition shall have an elected official (or a representative of an elected official) from— “(i) the Federal Government; and “(ii) the government of the appropriate State and political subdivision thereof or the governing body or an Indian tribe (as that term is defined in section 4(e) of the Indian Self-Determination Act (25 U.S.C. 450b(e))). “(C) Representation.—An individual who is a member of the coalition may serve on the coalition as a representative of not more than 1 category listed under subparagraph (A). “(3) Commitment.—The coalition shall demonstrate, to the satisfaction of the Administrator— “(A) that the representatives of the coalition have worked together on substance abuse reduction initiatives, which, at a minimum, includes initiatives that target drugs referenced in section 1023(9)(A), for a period of not less 111 STAT. 228than 6 months, acting through entities such as task forces, subcommittees, or community boards; and “(B) substantial participation from volunteer leaders in the community involved (especially in cooperation with individuals involved with youth such as parents, teachers, coaches, youth workers, and members of the clergy). “(4) Mission and strategies.—The coalition shall, with respect to the community involved— “(A) have as its principal mission the reduction of substance abuse, which, at a minimum, includes the use and abuse of drugs referenced in section 1023(9)(A), in a comprehensive and long-term manner, with a primary focus on youth in the community; “(B) describe and document the nature and extent of the substance abuse problem, which, at a minimum, includes the use and abuse of drugs referenced in section 1023(9)(A), in the community; “(C)(i) provide a description of substance abuse prevention and treatment programs and activities, which, at a minimum, includes programs and activities relating to the use and abuse of drugs referenced in section 1023(9)(A), in existence at the time of the grant application; and “(ii) identify substance abuse programs and service gaps, which, at a minimum, includes programs and gaps relating to the use and abuse of drugs referenced in section 1023(9)(A), in the community; “(D) develop a strategic plan to reduce substance abuse among youth, which, at a minimum, includes the use and abuse of drugs referenced in section 1023(9)(A), in a comprehensive and long-term fashion; and “(E) work to develop a consensus regarding the priorities of the community to combat substance abuse among youth, which, at a minimum, includes the use and abuse of drugs referenced in section 1023(9)(A). “(5) Sustainability.—The coalition shall demonstrate that the coalition is an ongoing concern by demonstrating that the coalition— “(A) is— “(i)(I) a nonprofit organization; or “(II) an entity that the Administrator determines to be appropriate; or “(ii) part of, or is associated with, an established legal entity; “(B) receives financial support (including, in the discretion of the Administrator, in-kind contributions) from non-Federal sources; and “(C) has a strategy to solicit substantial financial support from non-Federal sources to ensure that the coalition and the programs operated by the coalition are selfsustaining. “(6) Accountability.—The coalition shall— “(A) establish a system to measure and report outcomes— “(i) consistent with common indicators and evaluation protocols established by the Administrator; and “(ii) approved by the Administrator; “(B) conduct—111 STAT. 229 “(i) for an initial grant under this subchapter, an initial benchmark survey of drug use among youth (or use local surveys or performance measures available or accessible in the community at the time of the grant application); and “(ii) biennial surveys (or incorporate local surveys in existence at the time of the evaluation) to measure the progress and effectiveness of the coalition; and “(C) provide assurances that the entity conducting an evaluation under this paragraph, or from which the coalition receives information, has experience— “(i) in gathering data related to substance abuse among youth; or “(ii) in evaluating the effectiveness of community anti-drug coalitions. “(b) Grant Amounts.— “(1) In general.— “(A) Grants.— “(i) In general.—Subject to clause (iv), for a fiscal year, the Administrator may grant to an eligible coalition under this paragraph, an amount not to exceed the amount of non-Federal funds raised by the coalition, including in-kind contributions, for that fiscal year. “(ii) Suspension of grants.—If such grant recipient fails to continue to meet the criteria specified in subsection (a), the Administrator may suspend the grant, after providing written notice to the grant recipient and an opportunity to appeal. “(iii) Renewal grants.—Subject to clause (iv), the Administrator may award a renewal grant to a grant recipient under this subparagraph for each fiscal year following the fiscal year for which an initial grant is awarded, in an amount not to exceed the amount of non-Federal funds raised by the coalition, including in-kind contributions, for that fiscal year, during the 4-year period following the period of the initial grant. “(iv) Limitation.—The amount of a grant award under this subparagraph may not exceed $100,000 for a fiscal year. “(B) Coalition awards.— “(i) In general.—Except as provided in clause (ii), the Administrator may, with respect to a community, make a grant to 1 eligible coalition that represents that community. “(ii) Exception.—The Administrator may make a grant to more than 1 eligible coalition that represents a community if— “(I) the eligible coalitions demonstrate that the coalitions are collaborating with one another; and “(II) each of the coalitions has independently met the requirements set forth in subsection (a). “(2) Rural coalition grants.— “(A) In general.— “(i) In general.—In addition to awarding grants under paragraph (1), to stimulate the development of coalitions in sparsely populated and rural areas, the 111 STAT. 230Administrator, in consultation with the Advisory Commission, may award a grant in accordance with this section to a coalition that represents a county with a population that does not exceed 30,000 individuals. In awarding a grant under this paragraph, the Administrator may waive any requirement under subsection (a) if the Administrator considers that waiver to be appropriate. “(ii) Matching requirement.—Subject to subparagraph (C), for a fiscal year, the Administrator may grant to an eligible coalition under this paragraph, an amount not to exceed the amount of non-Federal funds raised by the coalition, including in-kind contributions, for that fiscal year. “(iii) Suspension of grants.—If such grant recipient fails to continue to meet any criteria specified in subsection (a) that has not been waived by the Administrator pursuant to clause (i), the Administrator may suspend the grant, after providing written notice to the grant recipient and an opportunity to appeal. “(B) Renewal grants.—The Administrator may award a renewal grant to an eligible coalition that is a grant recipient under this paragraph for each fiscal year following the fiscal year for which an initial grant is awarded, in an amount not to exceed the amount of non-Federal funds raised by the coalition, including in-kind contributions, during the 4-year period following the period of the initial grant. “(C) Limitations.— “(i) Amount.—The amount of a grant award under this paragraph shall not exceed $100,000 for a fiscal year. “(ii) Awards.—With respect to a county referred to in subparagraph (A), the Administrator may award a grant under this section to not more than 1 eligible coalition that represents the county.
“SEC. 1033.

21 USC 1533.

 INFORMATION COLLECTION AND DISSEMINATION WITH RESPECT TO GRANT RECIPIENTS. “(a) Coalition Information.— “(1) General auditing authority.—For the purpose of audit and examination, the Administrator— “(A) shall have access to any books, documents, papers, and records that are pertinent to any grant or grant renewal request under this chapter; and “(B) may periodically request information from a grant recipient to ensure that the grant recipient meets the applicable criteria under section 1032(a). “(2) Application process.—The Administrator shall issue a request for proposal regarding, with respect to the grants awarded under section 1032, the application process, grant renewal, and suspension or withholding of renewal grants. Each application under this paragraph shall be in writing and shall be subject to review by the Administrator. “(3) Reporting.—The Administrator shall, to the maximum extent practicable and in a manner consistent with applicable law, minimize reporting requirements by a grant recipient and 111 STAT. 231expedite any application for a renewal grant made under this subchapter. “(b) Data Collection and Dissemination.— “(1) In general.—The Administrator may collect data from— “(A) national substance abuse organizations that work with eligible coalitions, community anti-drug coalitions, departments or agencies of the Federal Government, or State or local governments and the governing bodies of Indian tribes; and “(B) any other entity or organization that carries out activities that relate to the purposes of the Program. “(2) Activities of administrator.—The Administrator may— “(A) evaluate the utility of specific initiatives relating to the purposes of the Program; “(B) conduct an evaluation of the Program; and “(C) disseminate information described in this subsection to— “(i) eligible coalitions and other substance abuse organizations; and “(ii) the general public.
“SEC. 1034. TECHNICAL ASSISTANCE AND TRAINING.

21 USC 1534.

 “(a) In General.— “(1) Technical assistance and agreements.—With respect to any grant recipient or other organization, the Administrator may— “(A) offer technical assistance and training; and “(B) enter into contracts and cooperative agreements. “(2) Coordination of programs.—The Administrator may facilitate the coordination of programs between a grant recipient and other organizations and entities. “(b) Training.—The Administrator may provide training to any representative designated by a grant recipient in— “(1) coalition building; “(2) task force development; “(3) mediation and facilitation, direct service, assessment and evaluation; or “(4) any other activity related to the purposes of the Program.
“Subchapter II—Advisory Commission
“SEC. 1041. ESTABLISHMENT OF ADVISORY COMMISSION.

21 USC 1541.

 “(a) Establishment.—There is established a commission to be known as the ‘Advisory Commission on Drug-Free Communities’. “(b) Purpose.—The Advisory Commission shall advise, consult with, and make recommendations to the Director concerning matters related to the activities carried out under the Program.
“SEC. 1042. DUTIES.

21 USC 1542.

 “(a) In General.—The Advisory Commission— “(1) shall, not later than 30 days after its first meeting, make recommendations to the Director regarding the selection of an Administrator;111 STAT. 232 “(2) may make recommendations to the Director regarding any grant, contract, or cooperative agreement made by the Program; “(3) may make recommendations to the Director regarding the activities of the Program; “(4) may make recommendations to the Director regarding any policy or criteria established by the Director to carry out the Program; “(5) may— “(A) collect, by correspondence or by personal investigation, information concerning initiatives, studies, services, programs, or other activities of coalitions or organizations working in the field of substance abuse in the United States or any other country; and “(B) with the approval of the Director, make the information referred to in subparagraph (A) available through appropriate publications or other methods for the benefit of eligible coalitions and the general public; and “(6) may appoint subcommittees and convene workshops and conferences. “(b)

Notification.

 Recommendations.—If the Director rejects any recommendation of the Advisory Commission under subsection (a)(1), the Director shall notify the Advisory Commission in writing of the reasons for the rejection not later than 15 days after receiving the recommendation. “(c) Conflict of Interest.—A member of the Advisory Commission shall recuse himself or herself from any decision that would constitute a conflict of interest.
“SEC. 1043.

21 USC 1543.

 MEMBERSHIP. “(a)

President.

 In General.—The President shall appoint 11 members to the Advisory Commission as follows: “(1) four members shall be appointed from the general public and shall include leaders— “(A) in fields of youth development, public policy, law, or business; or “(B) of nonprofit organizations or private foundations that fund substance abuse programs. “(2) four members shall be appointed from the leading representatives of national substance abuse reduction organizations, of which no fewer than three members shall have extensive training or experience in drug prevention. “(3) three members shall be appointed from the leading representatives of State substance abuse reduction organizations. “(b) Chairperson.—The Advisory Commission shall elect a chairperson or co-chairpersons from among its members. “(c) Ex Officio Members.—The ex officio membership of the Advisory Commission shall consist of any two officers or employees of the United States that the Director determines to be necessary for the Advisory Commission to effectively carry out its functions.
“SEC. 1044.

21 USC 1544.

 COMPENSATION. “(a) In General.—Members of the Advisory Commission who are officers or employees of the United States shall not receive any additional compensation for service on the Advisory Commission. The remaining members of the Advisory Commission shall receive, for each day (including travel time) that they are engaged 111 STAT. 233in the performance of the functions of the Advisory Commission, compensation at rates not to exceed the daily equivalent to the annual rate of basic pay payable for grade GS–10 of the General Schedule. “(b) Travel Expenses.—Each member of the Advisory Commission shall receive travel expenses, including per diem in lieu of subsistence, in accordance with sections 5702 and 5703 of title 5, United States Code.
“SEC. 1045. TERMS OF OFFICE.

21 USC 1545.

 “(a) In General.—Subject to subsection (b), the term of office of a member of the Advisory Commission shall be 3 years, except that, as designated at the time of appointment— “(1) of the initial members appointed under section 1043(a)(1), two shall be appointed for a term of 2 years; “(2) of the initial members appointed under section 1043(a)(2), two shall be appointed for a term of 2 years; and “(3) of the initial members appointed under section 1043(a)(3), one shall be appointed for a term of 1 year. “(b) Vacancies.—Any member appointed to fill a vacancy for an unexpired term of a member shall serve for the remainder of the unexpired term. A member of the Advisory Commission may serve after the expiration of such member’s term until a successor has been appointed and taken office.
“SEC. 1046. MEETINGS.

21 USC 1546.

 “(a) In General.—After its initial meeting, the Advisory Commission shall meet, with the advanced approval of the Administrator, at the call of the Chairperson (or Co-chairpersons) of the Advisory Commission or a majority of its members or upon the request of the Director or Administrator of the Program. “(b) Quorum.—Six members of the Advisory Commission shall constitute a quorum.
“SEC. 1047. STAFF.

21 USC 1547.

 “The Administrator shall make available to the Advisory Commission adequate staff, information, and other assistance.111 STAT. 234
“SEC. 1048.

21 USC 1548.

 TERMINATION. “The Advisory Commission shall terminate at the end of fiscal year 2002.”.
(b)

21 USC 1501 note.

 References.—Each reference in Federal law to subtitle A of the Anti-Drug Abuse Act of 1988, with the exception of section 1001 of such subtitle, in any provision of law that is in effect on the day before the date of enactment of this Act shall be deemed to be a reference to chapter 1 of the National Narcotics Leadership Act of 1988 (as so designated by this section).
Approved June 27, 1997.
LEGISLATIVE HISTORY—H.R. 956 (S. 536): HOUSE REPORTS: No. 105–105, Pt. 1 (Comm. on Government Reform and Oversight). CONGRESSIONAL RECORD, Vol. 143 (1997):

May 22, considered and passed House.

June 18, considered and passed Senate.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):

June 27, Presidential remarks.

 Public Law 105–21: To consent to certain amendments enacted by the Legislature of the State of Hawaii to the Hawaiian Homes Commission Act, 1920. Public Law21 Public Law 105–21 111 Stat. 235 1997-06-27 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 235 Public Law105–21 105th Congress
Joint Resolution To consent to certain amendments enacted by the Legislature of the State of Hawaii to the Hawaiian Homes Commission Act, 1920.

June 27, 1997

[H.J. Res. 32]

 Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,
That, as required

48 USC prec. 491 note.

 by section 4 of the Act entitled “An Act to provide for the admission of the State of Hawaii into the Union”, approved March 18, 1959 (73 Stat. 4), the United States consents to the following amendments to the Hawaiian Homes Commission Act, 1920, adopted by the State of Hawaii in the manner required for State legislation: (1) Act 339 of the Session Laws of Hawaii, 1993. (2) Act 37 of the Session Laws of Hawaii, 1994.
Approved June 27, 1997.
LEGISLATIVE HISTORY—H.J. Res. 32: CONGRESSIONAL RECORD, Vol. 143 (1997):

Mar. 11 considered and passed House.

June 12, considered and passed Senate.

 Public Law 105–22: To extend certain privileges, exemptions, and immunities to Hong Kong Economic and Trade Offices. Public Law22 Public Law 105–22 111 Stat. 236 1997-06-27 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 236 Public Law105–22 105th Congress
An Act To extend certain privileges, exemptions, and immunities to Hong Kong Economic and Trade Offices.

June 27, 1997

[S. 342]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1.

22 USC 288k.

 EXTENSION OF CERTAIN PRIVILEGES, EXEMPTIONS, AND IMMUNITIES TO HONG KONG ECONOMIC AND TRADE OFFICES. (a) Application of International Organizations Immunities Act.—The provisions of the International Organizations Immunities Act (22 U.S.C. 288 et seq.) may be extended to the Hong Kong Economic and Trade Offices in the same manner, to the same extent, and subject to the same conditions as such provisions may be extended to a public international organization in which the United States participates pursuant to any treaty or under the authority of any Act of Congress authorizing such participation or making an appropriation for such participation. (b) Application of International Agreement on Certain State and Local Taxation.—The President is authorized to apply the provisions of Article I of the Agreement on State and Local Taxation of Foreign Employees of Public International Organizations, done at Washington on April 21, 1994, to the Hong Kong Economic and Trade Offices. (c) Definition.—The term “Hong Kong Economic and Trade Offices” refers to Hong Kong’s official economic and trade missions in the United States.
Approved June 27, 1997.
LEGISLATIVE HISTORY—S. 342: CONGRESSIONAL RECORD, Vol. 143 (1997):

May 20, considered and passed Senate.

June 17, considered and passed House.

 Public Law 105–23: To amend section 2118 of the Energy Policy Act of 1992 to extend the Electric and Magnetic Fields Research and Public Information Dissemination program. Public Law23 Public Law 105–23 111 Stat. 237 1997-07-03 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 237 Public Law105–23 105th Congress
An Act To amend section 2118 of the Energy Policy Act of 1992 to extend the Electric and Magnetic Fields Research and Public Information Dissemination program.

July 3, 1997

[H.R. 363]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. AMENDMENTS. Section 2118 of the Energy Policy Act of 1992 (42 U.S.C. 13478) is amended— (1) in subsections (c)(5), (e)(5), (g)(3)(B), (j)(1), and (1) by striking “1997” each place it appears and inserting in lieu thereof “1998”; and (2) in subsection (i)(1), by striking “$65,000,000” and inserting in lieu thereof “$46,000,000”.
Approved July 3, 1997.
LEGISLATIVE HISTORY—H.R. 363: HOUSE REPORTS: No. 105–60, Pt. 1 (Comm. on Commerce) and Pt. 2 (Comm. on Science). SENATE REPORTS: No. 105–27 (Comm. on Energy and Natural Resources). CONGRESSIONAL RECORD, Vol. 143 (1997):

Apr. 29, considered and passed House.

June 20, considered and passed Senate.

 Public Law 105–24: To amend Federal law to clarify the applicability of host State laws to any branch in such State of an out-of-State bank, and for other purposes. Public Law24 Public Law 105–24 111 Stat. 238 1997-07-03 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 238 Public Law105–24 105th Congress
An Act To amend Federal law to clarify the applicability of host State laws to any branch in such State of an out-of-State bank, and for other purposes.

July 3, 1997

[H.R. 1306]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Riegle-Neal Amendments Act of 1997.

12 USC 1811 note.
SECTION 1. SHORT TITLE. This Act may be cited as the “Riegle-Neal Amendments Act of 1997”.
SEC. 2. INTERSTATE BRANCHING. (a) Activities of Branches of Out-of-State Banks.—Subsection 24(j) of the Federal Deposit Insurance Act (12 U.S.C. 1831a(j)) is amended to read as follows: “(j) Activities of Branches of Out-of-State Banks.— “(1) Application of host state law.—The laws of a host State, including laws regarding community reinvestment, consumer protection, fair lending, and establishment of intrastate branches, shall apply to any branch in the host State of an out-of-State State bank to the same extent as such State laws apply to a branch in the host State of an out-of-State national bank. To the extent host State law is inapplicable to a branch of an out-of-State State bank in such host State pursuant to the preceding sentence, home State law shall apply to such branch. “(2) Activities of branches.—An insured State bank that establishes a branch in a host State may conduct any activity at such branch that is permissible under the laws of the home State of such bank, to the extent such activity is permissible either for a bank chartered by the host State (subject to the restrictions in this section) or for a branch in the host State of an out-of-State national bank. “(3) Savings provision.—No provision of this subsection shall be construed as affecting the applicability of— “(A) any State law of any home State under subsection (b), (c), or (d) of section 44; or “(B) Federal law to State banks and State bank branches in the home State or the host State. “(4) Definitions.—The terms ‘host State’, ‘home State’, and ‘out-of-State bank’ have the same meanings as in section 44(f).”.111 STAT. 239 (b) Law Applicable to Interstate Branching Operations.—Section 5155(f)(1) of the Revised Statutes (12 U.S.C. 36(f)(1)) is amended by adding at the end the following: “(C) Review and report on actions by comptroller.—The Comptroller of the Currency shall conduct an annual review of the actions it has taken with regard to the applicability of State law to national banks (or their branches) during the preceding year, and shall include in its annual report required under section 333 of the Revised Statutes (12 U.S.C. 14) the results of the review and the reasons for each such action. The first such review and report after the date of enactment of this subparagraph shall encompass all such actions taken on or after January 1, 1992.”.
SEC. 3. RIGHT OF STATE TO OPT OUT

12 USC 1831a note.

 Nothing in this Act alters the right of States under section 525 of Public Law 96–221.
Approved July 3, 1997.
LEGISLATIVE HISTORY—H.R. 1306: CONGRESSIONAL RECORD, Vol. 143 (1997):

May 21, considered and passed House.

June 12, considered and passed Senate, amended.

June 24, House concurred in Senate amendment.

 Public Law 105–25: To amend the President John F. Kennedy Assassination Records Collection Act of 1992 to extend the authorization of the Assassination Records Review Board until September 30, 1998. Public Law25 Public Law 105–25 111 Stat. 240 1997-07-03 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 240 Public Law105–25 105th Congress
An Act To amend the President John F. Kennedy Assassination Records Collection Act of 1992 to extend the authorization of the Assassination Records Review Board until September 30, 1998.

July 3, 1997

[H.R. 1553]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. EXTENSION OF AUTHORIZATION OF ASSASSINATION RECORDS REVIEW BOARD. The President John F. Kennedy Assassination Records Collection Act of 1992 (44 U.S.C. 2107 note) is amended— (1) in section 7(o)(1), by striking “September 30, 1996” and all that follows through the end of the paragraph and inserting “September 30, 1998.” and (2) in section 13(a), by striking “such sums” and all that follows through “expended” and inserting “to carry out the provisions of this Act $1,600,000 for fiscal year 1998”.
Approved July 3, 1997.
LEGISLATIVE HISTORY—H.R. 1553: HOUSE REPORTS: No. 105–138, Pt. 1 (Comm. on Government Reform and Oversight). CONGRESSIONAL RECORD, Vol. 143 (1997):

June 23, considered and passed House.

June 25, considered and passed Senate.

 Public Law 105–26: To immunize donations made in the form of charitable gift annuities and charitable remainder trusts from the antitrust laws and State laws similar to the antitrust laws. Public Law26 Public Law 105–26 111 Stat. 241 1997-07-03 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 241 Public Law105–26 105th Congress
An Act To immunize donations made in the form of charitable gift annuities and charitable remainder trusts from the antitrust laws and State laws similar to the antitrust laws.

July 3, 1997

[H.R. 1902]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Charitable Donation Antitrust Immunity Act of 1997.

15 USC 1 note.
SECTION 1. SHORT TITLE. This Act may be cited as the “Charitable Donation Antitrust Immunity Act of 1997”.
SEC. 2. IMMUNITY FROM ANTITRUST LAWS. The Charitable Gift Annuity Antitrust Relief Act of 1995 (15 U.S.C. 37 et seq.) is amended—

15 USC 37.

 (1) by amending section 2 to read as follows:
“SEC. 2. IMMUNITY FROM ANTITRUST LAWS. “(a) Inapplicability of Antitrust Laws.—Except as provided in subsection (d), the antitrust laws, and any State law similar to any of the antitrust laws, shall not apply to charitable gift annuities or charitable remainder trusts. “(b) Immunity.—Except as provided in subsection (d), any person subjected to any legal proceeding for damages, injunction, penalties, or other relief of any kind under the antitrust laws, or any State law similar to any of the antitrust laws, on account of setting or agreeing to rates of return or other terms for, negotiating, issuing, participating in, implementing, or otherwise being involved in the planning, issuance, or payment of charitable gift annuities or charitable remainder trusts shall have immunity from suit under the antitrust laws, including the right not to bear the cost, burden, and risk of discovery and trial, for the conduct set forth in this subsection. “(c) Treatment of Certain Annuities and Trusts.—Any annuity treated as a charitable gift annuity, or any trust treated as a charitable remainder trust, either— “(1) in any filing by the donor with the Internal Revenue Service; or “(2) in any schedule, form, or written document provided by or on behalf of the donee to the donor; shall be conclusively presumed for the purposes of this Act to be respectively a charitable gift annuity or a charitable remainder trust, unless there has been a final determination by the Internal Revenue Service that, for fraud or otherwise, the donor’s annuity or trust did not qualify respectively as a charitable gift annuity or charitable remainder trust when created.111 STAT. 242 “(d) Limitation.—Subsections (a) and (b) shall not apply with respect to the enforcement of a State law similar to any of the antitrust laws, with respect to charitable gift annuities, or charitable remainder trusts, created after the State enacts a statute, not later than December 8, 1998, that expressly provides that subsections (a) and (b) shall not apply with respect to such charitable gift annuities and such charitable remainder trusts.”; and
(2)

15 USC 37a.

 in section 3— (A) by striking paragraph (1); (B) by redesignating paragraph (2) as paragraph (1); (C) by inserting after paragraph (1), as so redesignated, the following: “(2) Charitable remainder trust.—The term ‘charitable remainder trust’ has the meaning given it in section 664(d) of the Internal Revenue Code of 1986 (26 U.S.C. 664(d)).”; (D) by redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively; and (E) by inserting after paragraph (3) the following: “(4) Final determination.—The term ‘final determination’ includes an Internal Revenue Service determination, after exhaustion of donor’s and donee’s administrative remedies, disallowing the donor’s charitable deduction for the year in which the initial contribution was made because of the donee’s failure to comply at such time with the requirements of section 501(m)(5) or 664(d), respectively, of the Internal Revenue Code of 1986 (26 U.S.C. 501(m)(5), 664(d)).”.
SEC. 3.

15 USC 37 note.

 APPLICATION OF ACT. This Act, and the amendments made by this Act, shall apply with respect to all conduct occurring before, on, or after the date of the enactment of this Act and shall apply in all administrative and judicial actions pending on or commenced after the date of the enactment of this Act.
SEC. 4.

15 USC 37 note.

 STUDY AND REPORT. (a) Study and Report.—The Attorney General shall carry out a study to determine the effect of this Act on markets for noncharitable annuities, charitable gift annuities, and charitable remainder trusts. The Attorney General shall prepare a report summarizing the results of the study. (b) Details of Study and Report.—The report referred to in subsection (a) shall include any information on possible inappropriate activity resulting from this Act and any recommendations for legislative changes, including recommendations for additional enforcement resources.111 STAT. 243 (c) Submission of Report.—The Attorney General shall submit the report referred to in subsection (a) to the Chairman and the ranking member of the Committee on the Judiciary of the House of Representatives, and to the Chairman and the ranking member of the Committee on the Judiciary of the Senate, not later than 27 months after the date of the enactment of this Act.
Approved July 3, 1997.
LEGISLATIVE HISTORY—H.R. 1902: HOUSE REPORTS: No. 105–146 (Comm. on the Judiciary). CONGRESSIONAL RECORD, Vol. 143 (1997):

June 23, considered and passed House.

June 24, considered and passed Senate.

 Public Law 105–27: To amend the Federal Property and Administrative Services Act of 1949 to authorize donation of Federal law enforcement canines that are no longer needed for official purposes to individuals with experience handling canines in the performance of law enforcement duties. Public Law27 Public Law 105–27 111 Stat. 244 1997-07-18 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 244 Public Law105–27 105th Congress
An Act To amend the Federal Property and Administrative Services Act of 1949 to authorize donation of Federal law enforcement canines that are no longer needed for official purposes to individuals with experience handling canines in the performance of law enforcement duties.

July 18, 1997

[H.R. 173]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. AUTHORIZATION TO DONATE SURPLUS LAW ENFORCEMENT CANINES TO THEIR HANDLERS. Section 203 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 484) is amended by adding at the end the following: “(r) The head of a Federal agency having control of a canine that has been used by a Federal agency in the performance of law enforcement duties and that has been determined by the agency to be no longer needed for official purposes may donate the canine to an individual who has experience handling canines in the performance of those duties.”.
Approved July 18, 1997.
LEGISLATIVE HISTORY—H.R. 173: CONGRESSIONAL RECORD, Vol. 143 (1997):

Apr. 16, considered and passed House.

June 27, considered and passed Senate.

 Public Law 105–28: To amend sections of the Department of Energy Organization Act that are obsolete or inconsistent with other statutes and to repeal a related section of the Federal Energy Administration Act of 1974. Public Law28 Public Law 105–28 111 Stat. 245 1997-07-18 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 245 Public Law105–28 105th Congress
An Act To amend sections of the Department of Energy Organization Act that are obsolete or inconsistent with other statutes and to repeal a related section of the Federal Energy Administration Act of 1974.

July 18, 1997

[H.R. 649]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Department of Energy Standardization Act of 1997.

42 USC 7101 note.
SECTION 1. SHORT TITLE. This Act may be cited as the “Department of Energy Standardization Act of 1997”.
SEC. 2. STANDARDIZATION OF DEPARTMENT OF ENERGY REQUIREMENTS WITH GOVERNMENT-WIDE REQUIREMENTS. (a) Department of Energy Regulations.—Section 501 of the Department of Energy Organization Act (42 U.S.C. 7191) is amended— (1) by striking subsections (b) and (d), (2) by redesignating subsection (c) as subsection (b) and by redesignating subsections (e), (f), and (g) as subsections (c), (d), and (e), respectively, and (3) in subsection (c) (as so redesignated), by striking “subsections (b), (c), and (d)” and inserting “subsection (b)”. (b) Special Requirements Affecting Advisory Committees.— (1) Section 624.—Section 624 of the Department of Energy Organization Act (42 U.S.C. 7234) is amended by— (A) striking “(a)”; and (B) striking subsection (b). (2) Technical and conforming amendment.—Section 17 of the Federal Energy Administration Act of 1974 (15 U.S.C. 776) is repealed.
Approved July 18, 1997.
LEGISLATIVE HISTORY—H.R. 649: HOUSE REPORTS: No. 105–11 (Comm. on Commerce). SENATE REPORTS: No. 105–26 (Comm. on Energy and Natural Resources). CONGRESSIONAL RECORD, Vol. 143 (1997):

Mar. 11, considered and passed House.

June 27, considered and passed Senate.

 Public Law 105–29: To direct the Secretary of the Interior to design and construct a permanent addition to the Franklin Delano Roosevelt Memorial in Washington, D.C., and for other purposes. Public Law29 Public Law 105–29 111 Stat. 246 1997-07-24 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 246 Public Law105–29 105th Congress
An Act To direct the Secretary of the Interior to design and construct a permanent addition to the Franklin Delano Roosevelt Memorial in Washington, D.C., and for other purposes.

July 24, 1997

[S.J. Res. 29]

 Whereas President Franklin Delano Roosevelt, after contracting poliomyelitis, required the use of a wheelchair for mobility and lived with this condition while leading the United States through some of its most difficult times; and Whereas President Roosevelt’s courage, leadership, and success should serve as an example and inspiration for all Americans: Now, therefore, be it Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1.

16 USC 431 note.

 ADDITION TO FRANKLIN DELANO ROOSEVELT MEMORIAL. (a) Plan.—The Secretary of the Interior (referred to in this Act as the “Secretary”) shall plan for the design and construction of an addition of a permanent statue, bas-relief, or other similar structure to the Franklin Delano Roosevelt Memorial in Washington, D.C. (referred to in this Act as the “Memorial”), to provide recognition of the fact that President Roosevelt’s leadership in the struggle by the United States for peace, well-being, and human dignity was provided while the President used a wheelchair. (b) Commission of Fine Arts.—The Secretary shall obtain the approval of the Commission of Fine Arts for the design plan created under subsection (a). (c) Report.—As soon as practicable, the Secretary shall report to Congress and the President on findings and recommendations for the addition to the Memorial. (d) Construction.—Beginning on the date that is 120 days after submission of the report to Congress under subsection (c), using only private contributions, the Secretary shall construct the addition according to the plan created under subsection (a).
SEC. 2.

16 USC 431 note.

 POWERS OF THE SECRETARY. To carry out this Act, the Secretary may— (1) hold hearings and organize contests; and (2) request the assistance and advice of members of the disability community, the Commission of Fine Arts, and the National Capital Planning Commission, and the Commissions shall render the assistance and advice requested.111 STAT. 247
SEC. 3. COMMEMORATIVE WORKS ACT.

16 USC 431 note.

 Compliance by the Secretary with this joint resolution shall satisfy all requirements for establishing a commemorative work under the Commemorative Works Act (40 U.S.C. 1001 et seq.).
SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

16 USC 431 note.

 There are authorized to be appropriated to carry out this joint resolution such sums as may be necessary.
Approved July 24, 1997.
LEGISLATIVE HISTORY—S.J. Res. 29: CONGRESSIONAL RECORD, Vol. 143 (1997): HOUSE REPORTS: No. 105–167 (Comm. on Resources).

May 1, considered and passed Senate.

July 8, considered and passed House.

 Public Law 105–30: To clarify that the protections of the Federal Tort Claims Act apply to the members and personnel of the National Gambling Impact Study Commission. Public Law30 Public Law 105–30 111 Stat. 248 1997-07-25 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 248 Public Law105–30 105th Congress
An Act To clarify that the protections of the Federal Tort Claims Act apply to the members and personnel of the National Gambling Impact Study Commission.

July 25, 1997

[H.R. 1901]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. APPLICABILITY OF FEDERAL TORT CLAIMS PROVISIONS. Section 6 of the National Gambling Impact Study Commission Act (18 U.S.C. 1955 note) is amended by adding at the end the following: “(e) Applicability of Federal Tort Claims Provisions.—For purposes of sections 1346(b) and 2401(b) and chapter 171 of title 28, United States Code, the Commission is a ‘Federal agency’ and each of the members and personnel of the Commission is an ‘employee of the Government’.”.
SEC. 2.

18 USC 1955 note.

 CONSTRUCTION. The amendment made by section 1 shall not be construed to imply that any commission is not a “Federal agency” or that any of the members or personnel of a commission is not an “employee of the Government” for purposes of sections 1346(b) and 2401(b) and chapter 171 of title 28, United States Code.
SEC. 3.

18 USC 1955 note.

 EFFECTIVE DATE. The amendment made by section 1 shall be effective as of August 3, 1996.
Approved July 25, 1997.
LEGISLATIVE HISTORY—H.R. 1901: HOUSE REPORTS: No. 105–145 (Comm. on the Judiciary). CONGRESSIONAL RECORD, Vol. 143 (1997):

June 23, considered and passed House.

July 9, considered and passed Senate.

 Public Law 105–31: To waive temporarily the Medicaid enrollment composition rule for the Better Health Plan of Amherst, New York. Public Law31 Public Law 105–31 111 Stat. 249 1997-07-25 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 249 Public Law105–31 105th Congress
An Act To waive temporarily the Medicaid enrollment composition rule for the Better Health Plan of Amherst, New York.

July 25, 1997

[H.R. 2018]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. WAIVER OF 75/25 MEDICAID ENROLLMENT RULE FOR BETTER HEALTH PLAN, INC.

Effective date.

 Effective July 1, 1997, the requirement of section 1903(m)(2)(A)(ii) of the Social Security Act (42 U.S.C. 1396b(m)(2)(A)(ii)) is waived, for contract periods through December 31, 1998, with respect to the Better Health Plan, Inc. operating in New York.
Approved July 25, 1997.
LEGISLATIVE HISTORY—H.R. 2018: HOUSE REPORTS: No. 105–165 (Comm. on Commerce). CONGRESSIONAL RECORD, Vol. 143 (1997):

July 8, considered and passed House.

July 11, considered and passed Senate.

 Public Law 105–32: Waiving certain enrollment requirements with respect to two specified bills of the One Hundred Fifth Congress. Public Law32 Public Law 105–32 111 Stat. 250 1997-08-01 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 250 Public Law105–32 105th Congress
An Act Waiving certain enrollment requirements with respect to two specified bills of the One Hundred Fifth Congress.

Aug. 1, 1997

[H.J. Res. 90]

 Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,
That the provisions of sections 106 and 107 of title 1, United States Code, are waived with respect to the printing (on parchment or otherwise) of the enrollment of H.R. 2014 and of H.R. 2015 of the One Hundred Fifth Congress. The enrollment of each of those bills shall be in such form as the Committee on House Oversight of the House of Representatives certifies to be a true enrollment.
Approved August 1, 1997.
LEGISLATIVE HISTORY—H.J. Res. 90: CONGRESSIONAL RECORD, Vol. 143 (1997):

July 31, considered and passed House and Senate.

 Public Law 105–33: To provide for reconciliation pursuant to subsections (b)(1) and (c) of section 105 of the concurrent resolution on the budget for fiscal year 1998. Public Law33 Public Law 105–33 111 Stat. 251 1997-08-05 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 251

*Note: This law contains an item that was cancelled by the President pursuant to the Line Item Veto Act. For more information, see the Federal Register entry under “LEGISLATIVE HISTORY” at the end of this law.

 Public Law105–33 105th Congress
An Act To provide for reconciliation pursuant to subsections (b)(1) and (c) of section 105 of the concurrent resolution on the budget for fiscal year 1998.

Aug. 5, 1997

[H.R. 2015]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Balanced Budget Act of 1997.
SECTION 1. SHORT TITLE. This Act may be cited as the “Balanced Budget Act of 1997”.
SEC. 2. TABLE OF TITLES. This Act is organized into titles as follows: Title I— Title II— Title III— Title IV— Title V— Title VI— Title VII— Title VIII— Title IX— Title X— Title XI—
<num value="I">TITLE I—</num><heading>FOOD STAMP PROVISIONS</heading> <section> <num value="1001">SEC. 1001.</num> <heading>EXEMPTION.</heading> <chapeau>Section 6(o) of the Food Stamp Act of 1977 (7 U.S.C. 2015(o)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in paragraph (2)(D), by striking “<quotedText>or (5)</quotedText>” and inserting “<quotedText>(5), or (6)</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by redesignating paragraph (6) as paragraph (7); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by inserting after paragraph (5) the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">15-percent exemption</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>In this paragraph:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Caseload</inline>.—</heading><content>The term ‘caseload’ means the average monthly number of individuals receiving food stamps during the 12-month period ending the preceding June 30.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Covered individual</inline>.—</heading><chapeau>The term ‘covered individual’ means a food stamp recipient, or an individual denied eligibility for food stamp benefits solely due to paragraph (2), who—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>is not eligible for an exception under paragraph (3);</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>does not reside in an area covered by a waiver granted under paragraph (4);<page identifier="/us/stat/111/252">111 STAT. 252</page></content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>is not complying with subparagraph (A), (B), or (C) of paragraph (2);</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>is not receiving food stamp benefits during the 3 months of eligibility provided under paragraph (2); and</content></subclause> <subclause class="indent4 fontsize10"><num value="V">“(V)</num> <content>is not receiving food stamp benefits under paragraph (5).</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">General rule</inline>.—</heading><content>Subject to subparagraphs (C) through (G), a State agency may provide an exemption from the requirements of paragraph (2) for covered individuals.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Fiscal year 1998</inline>.—</heading><content>Subject to subparagraphs (E) and (G), for fiscal year 1998, a State agency may provide a number of exemptions such that the average monthly number of the exemptions in effect during the fiscal year does not exceed 15 percent of the number of covered individuals in the State in fiscal year 1998, as estimated by the Secretary, based on the survey conducted to carry out section 16(c) for fiscal year 1996 and such other factors as the Secretary considers appropriate due to the timing and limitations of the survey.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Subsequent fiscal years</inline>.—</heading><content>Subject to subparagraphs (E) through (G), for fiscal year 1999 and each subsequent fiscal year, a State agency may provide a number of exemptions such that the average monthly number of the exemptions in effect during the fiscal year does not exceed 15 percent of the number of covered individuals in the State, as estimated by the Secretary under subparagraph (C), adjusted by the Secretary to reflect changes in the State’s caseload and the Secretary’s estimate of changes in the proportion of food stamp recipients covered by waivers granted under paragraph (4).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Caseload adjustments</inline>.—</heading><content>The Secretary shall adjust the number of individuals estimated for a State under subparagraph (C) or (D) during a fiscal year if the number of food stamp recipients in the State varies from the State’s caseload by more than 10 percent, as determined by the Secretary.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <heading><inline class="smallCaps">Exemption adjustments</inline>.—</heading><content>During fiscal year 1999 and each subsequent fiscal year, the Secretary shall increase or decrease the number of individuals who may be granted an exemption by a State agency under this paragraph to the extent that the average monthly number of exemptions in effect in the State for the preceding fiscal year under this paragraph is lesser or greater than the average monthly number of exemptions estimated for the State agency for such preceding fiscal year under this paragraph.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <heading><inline class="smallCaps">Reporting requirement</inline>.—</heading><content>A State agency shall submit such reports to the Secretary as the Secretary determines are necessary to ensure compliance with this paragraph.”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> </section> <section> <num value="1002">SEC. 1002.</num> <heading>ADDITIONAL FUNDING FOR EMPLOYMENT AND TRAINING.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 16(h) of the Food Stamp Act of 1977 (7 U.S.C. 2025(h)) is amended by striking paragraph (1) and inserting the following:<page identifier="/us/stat/111/253">111 STAT. 253</page> <quotedContent> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Amounts</inline>.—</heading><chapeau>To carry out employment and training programs, the Secretary shall reserve for allocation to State agencies, to remain available until expended, from funds made available for each fiscal year under section 18(a)(1) the amount of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>for fiscal year 1996, $75,000,000;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>for fiscal year 1997, $79,000,000;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <chapeau>for fiscal year 1998—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>$81,000,000; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>an additional amount of $131,000,000;</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <chapeau>for fiscal year 1999—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>$84,000,000; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>an additional amount of $131,000,000;</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <chapeau>for fiscal year 2000—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>$86,000,000; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>an additional amount of $131,000,000;</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <chapeau>for fiscal year 2001—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>$88,000,000; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>an additional amount of $131,000,000; and</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="vii">“(vii)</num> <chapeau>for fiscal year 2002—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>$90,000,000; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>an additional amount of $75,000,000.</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Allocation</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Allocation formula</inline>.—</heading><chapeau>The Secretary shall allocate the amounts reserved under subparagraph (A) among the State agencies using a reasonable formula, as determined and adjusted by the Secretary each fiscal year, to reflect—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>changes in each State’s caseload (as defined in section 6(o)(6)(A));</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>for fiscal year 1998, the portion of food stamp recipients who reside in each State who are not eligible for an exception under section 6(o)(3); and</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <chapeau>for each of fiscal years 1999 through 2002, the portion of food stamp recipients who reside in each State who are not eligible for an exception under section 6(o)(3) and who—</chapeau> <item class="indent5 fontsize10"><num value="aa">“(aa)</num> <content>do not reside in an area subject to a waiver granted by the Secretary under section 6(o)(4); or</content></item> <item class="indent5 fontsize10"><num value="bb">“(bb)</num> <content>do reside in an area subject to a waiver granted by the Secretary under section 6(o)(4), if the State agency provides employment and training services in the area to food stamp recipients who are not eligible for an exception under section 6(o)(3).</content></item> </subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Estimated factors</inline>.—</heading><content>The Secretary shall estimate the portion of food stamp recipients who reside in each State who are not eligible for an exception under section 6(o)(3) based on the survey conducted to carry out subsection (c) for fiscal year 1996 and such other factors as the Secretary considers appropriate due to the timing and limitations of the survey.<page identifier="/us/stat/111/254">111 STAT. 254</page></content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Reporting requirement</inline>.—</heading><content>A State agency shall submit such reports to the Secretary as the Secretary determines are necessary to ensure compliance with this paragraph.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Reallocation</inline>.—</heading><content>If a State agency will not expend all of the funds allocated to the State agency for a fiscal year under subparagraph (B), the Secretary shall reallocate the unexpended funds to other States (during the fiscal year or the subsequent fiscal year) as the Secretary considers appropriate and equitable.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Minimum allocation</inline>.—</heading><content>Notwithstanding subparagraph (B), the Secretary shall ensure that each State agency operating an employment and training program shall receive not less than $50,000 for each fiscal year.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Use of funds</inline>.—</heading><chapeau>Of the amount of funds a State agency receives under subparagraphs (A) through (D) for a fiscal year, not less than 80 percent of the funds shall be used by the State agency during the fiscal year to serve food stamp recipients who—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>are not eligible for an exception under section 6(o)(3); and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>are placed in and comply with a program described in subparagraph (B) or (C) of section 6(o)(2).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <heading><inline class="smallCaps">Maintenance of effort</inline>.—</heading><content>To receive an allocation of an additional amount made available under subclause (II) of each of clauses (iii) through (vii) of subparagraph (A), a State agency shall maintain the expenditures of the State agency for employment and training programs and workfare programs for any fiscal year under paragraph (2), and administrative expenses described in section 20(g)(1), at a level that is not less than the level of the expenditures by the State agency to carry out the programs and such expenses for fiscal year 1996.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <heading><inline class="smallCaps">Component costs</inline>.—</heading><content>The Secretary shall monitor State agencies’ expenditure of funds for employment and training programs provided under this paragraph, including the costs of individual components of State agencies’ programs. The Secretary may determine the reimbursable costs of employment and training components, and, if the Secretary makes such a determination, the Secretary shall determine that the amounts spent or planned to be spent on the components reflect the reasonable cost of efficiently and economically providing components appropriate to recipient employment and training needs, taking into account, as the Secretary deems appropriate, prior expenditures on the components, the variability of costs among State agencies’ components, the characteristics of the recipients to be served, and such other factors as the Secretary considers necessary.”.</content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s2025">7 USC 2025 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Report to Congress</inline>.—</heading><content>Not later than 30 months after the date of enactment of this Act, the Secretary of Agriculture shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report regarding whether the amounts made available under section 16(h)(1)(A) of the Food Stamp Act of 1977 (as a result of the amendment made by subsection (a)) <page identifier="/us/stat/111/255">111 STAT. 255</page>have been used by State agencies to increase the number of work slots for recipients subject to section 6(o) of the Food Stamp Act of 1977 (7 U.S.C. 2015(o)) in employment and training programs and workfare in the most efficient and effective manner practicable.</content> </subsection> </section> <section> <num value="1003">SEC. 1003.</num> <heading>DENIAL OF FOOD STAMPS FOR PRISONERS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">State Plans</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 11(e) of the Food Stamp Act of 1977 (7 U.S.C. 2020(e)) is amended by striking paragraph (20) and inserting the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="20">“(20)</num> <chapeau>that the State agency shall establish a system and take action on a periodic basis—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>to verify and otherwise ensure that an individual does not receive coupons in more than 1 jurisdiction within the State; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>to verify and otherwise ensure that an individual who is placed under detention in a Federal, State, or local penal, correctional, or other detention facility for more than 30 days shall not be eligible to participate in the food stamp program as a member of any household, except that—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the Secretary may determine that extraordinary circumstances make it impracticable for the State agency to obtain information necessary to discontinue inclusion of the individual; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>a State agency that obtains information collected under section 1611(e)(1)(I)(i)(I) of the Social Security Act (42 U.S.C. 1382(e)(1)(I)(i)(I)) pursuant to section 161 l(e)(1)(I)(ii)(II) of that Act (42 U.S.C. 1382(e)(1)(I)(ii)(II)), or under another program determined by the Secretary to be comparable to the program carried out under that section, shall be considered in compliance with this subparagraph.”.</content></clause> </subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Limits on disclosure and use of information</inline>.—</heading><content>Section 11(e)(8)(E) of the Food Stamp Act of 1977 (7 U.S.C. 2020(e)(8)(E)) is amended by striking “<quotedText>paragraph (16)</quotedText>” and inserting “<quotedText>paragraph (16) or (20)(B)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Effective date</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s2020">7 USC 2020 note</ref>.</p></sidenote> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in subparagraph (B), the amendments made by this subsection shall take effect on the date that is 1 year after the date of enactment of this Act.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Extension</inline>.—</heading><chapeau>The Secretary of Agriculture may grant a State an extension of time to comply with the amendments made by this subsection, not to exceed beyond the date that is 2 years after the date of enactment of this Act, if the chief executive officer of the State submits a request for the extension to the Secretary—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>stating the reasons why the State is not able to comply with the amendments made by this subsection by the date that is 1 year after the date of enactment of this Act;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>providing evidence that the State is making a good faith effort to comply with the amendments made by this subsection as soon as practicable; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>detailing a plan to bring the State into compliance with the amendments made by this subsection <page identifier="/us/stat/111/256">111 STAT. 256</page>as soon as practicable but not later than the date of the requested extension.</content></clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Information Sharing</inline>.—</heading><content>Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020) is amended by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="q">“(q)</num> <heading><inline class="smallCaps">Denial of Food Stamps for Prisoners</inline>.—</heading><content>The Secretary shall assist States, to the maximum extent practicable, in implementing a system to conduct computer matches or other systems to prevent prisoners described in section 11(e)(20)(B) from participating in the food stamp program as a member of any household.”.</content> </subsection> </quotedContent> </content></subsection> </section> <section> <num value="1004">SEC. 1004.</num> <heading>NUTRITION EDUCATION.</heading> <chapeau>Section 11(f) of the Food Stamp Act of 1977 (7 U.S.C. 2020(f)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>(f) To encourage</quotedText>” and inserting the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Nutrition Education</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>To encourage”; and</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Grants</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall make available not more than $600,000 for each of fiscal years 1998 through 2001 to pay the Federal share of grants made to eligible private nonprofit organizations and State agencies to carry out subparagraph (B).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Eligibility</inline>.—</heading><chapeau>A private nonprofit organization or State agency shall be eligible to receive a grant under subparagraph (A) if the organization or agency agrees—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>to use the funds to direct a collaborative effort to coordinate and integrate nutrition education into health, nutrition, social service, and food distribution programs for food stamp participants and other low-income households; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>to design the collaborative effort to reach large numbers of food stamp participants and other low-income households through a network of organizations, including schools, child care centers, farmers’ markets, health clinics, and outpatient education services.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Preference</inline>.—</heading><content>In deciding between 2 or more private nonprofit organizations or State agencies that are eligible to receive a grant under subparagraph (B), the Secretary shall give a preference to an organization or agency that conducted a collaborative effort described in subparagraph (B) and received funding for the collaborative effort from the Secretary before the date of enactment of this paragraph.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Federal share</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subject to subparagraph (E), the Federal share of a grant under this paragraph shall be 50 percent.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">No in-kind contributions</inline>.—</heading><content>The non-Federal share of a grant under this paragraph shall be in cash.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Private funds</inline>.—</heading><content>The non-Federal share of a grant under this paragraph may include amounts from private nongovernmental sources.<page identifier="/us/stat/111/257">111 STAT. 257</page></content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Limit on individual grant</inline>.—</heading><content>The Federal share of a grant under subparagraph (A) may not exceed $200,000 for a fiscal year.”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> </section> <section> <num value="1005">SEC. 1005.</num> <heading>REGULATIONS; EFFECTIVE DATE.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s2015">7 USC 2015 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Regulations</inline>.—</heading><content>Not later than 1 year after the date of enactment of this Act, the Secretary of Agriculture shall promulgate such regulations as are necessary to implement the amendments made by this title.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by sections 1001 and 1002 take effect on October 1, 1997, without regard to whether regulations have been promulgated to implement the amendments made by such sections.</content> </subsection> </section> <num value="II">TITLE II—</num><heading>HOUSING AND RELATED PROVISIONS</heading> <section> <num value="2001">SEC. 2001.</num> <heading>TABLE OF CONTENTS.</heading> <content>The table of contents for this title is as follows: <toc> <referenceItem role="title"><designator>TITLE II—</designator><label>HOUSING AND RELATED PROVISIONS</label></referenceItem> <referenceItem role="section"><designator>Sec. 2001.</designator> <label>Table of contents.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2002.</designator> <label>Extension of foreclosure avoidance and borrower assistance provisions for FHA single family housing mortgage insurance program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2003.</designator> <label>Adjustment of maximum monthly rents for certain dwelling units in new construction and substantial or moderate rehabilitation projects assisted under section 8 rental assistance program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2004.</designator> <label>Adjustment of maximum monthly rents for non-turnover dwelling units assisted under section 8 rental assistance program.</label></referenceItem> </toc> </content></section> <section> <num value="2002">SEC. 2002.</num> <heading>EXTENSION OF FORECLOSURE AVOIDANCE AND BORROWER ASSISTANCE PROVISIONS FOR FHA SINGLE FAMILY HOUSING MORTGAGE INSURANCE PROGRAM.</heading> <chapeau>Section 407 of The Balanced Budget Downpayment Act, I (12 U.S.C. 1710 note) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in subsection (c)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>only</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by inserting “<quotedText>, on, or after</quotedText>” after “before”; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking subsection (e).</content></paragraph> </section> <section> <num value="2003">SEC. 2003.</num> <heading>ADJUSTMENT OF MAXIMUM MONTHLY RENTS FOR CERTAIN DWELLING UNITS IN NEW CONSTRUCTION AND SUBSTANTIAL OR MODERATE REHABILITATION PROJECTS ASSISTED UNDER SECTION 8 RENTAL ASSISTANCE PROGRAM.</heading> <content>The third sentence of section 8(c)(2)(A) of the United States Housing Act of 1937 (42 U.S.C. 1437f(c)(2)(A)) is amended by inserting before the period at the end the following: “, and during fiscal year 1999 and thereafter”.</content> </section> <section> <num value="2004">SEC. 2004.</num> <heading>ADJUSTMENT OF MAXIMUM MONTHLY RENTS FOR NONTURNOVER DWELLING UNITS ASSISTED UNDER SECTION 8 RENTAL ASSISTANCE PROGRAM.</heading> <content>The last sentence of section 8(c)(2)(A) of the United States Housing Act of 1937 (42 U.S.C. 1437f(c)(2)(A)) is amended by inserting before the period at the end the following: “, and during fiscal year 1999 and thereafter”.<page identifier="/us/stat/111/258">111 STAT. 258</page></content> </section> <num value="III">TITLE III—</num><heading>COMMUNICATIONS AND SPECTRUM ALLOCATION PROVISIONS</heading> <section> <num value="3001">SEC. 3001.</num> <heading>DEFINITIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t47/s153">47 USC 153 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Common Terminology</inline>.—</heading><content>Except as otherwise provided in this title, the terms used in this title nave the meanings provided in section 3 of the Communications Act of 1934 (47 U.S.C. 153), as amended by this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Additional Definitions</inline>.—</heading><chapeau>Section 3 of the Communications Act of 1934 (47 U.S.C. 153) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by redesignating paragraphs (49) through (51) as paragraphs (50) through (52), respectively; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting after paragraph (48) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="49">“(49)</num> <heading><inline class="smallCaps">Television service</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Analog television service</inline>.—</heading><content>The term ‘analog television service’ means television service provided pursuant to the transmission standards prescribed by the Commission in section 73.682(a) of its regulations (47 C.F.R. 73.682(a)).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Digital television service</inline>.—</heading><content>The term ‘digital television service’ means television service provided pursuant to the transmission standards prescribed by the Commission in section 73.682(d) of its regulations (47 C.F.R. 73.682(d)).”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> </subsection> </section> <section> <num value="3002">SEC. 3002.</num> <heading>SPECTRUM AUCTIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Extension and Expansion of Auction Authority</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Section 309(j) of the Communications Act of 1934 (47 U.S.C. 309(j)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking paragraphs (1) and (2) and inserting in lieu thereof the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">General authority</inline>.—</heading><content>If, consistent with the obligations described in paragraph (6)(E), mutually exclusive applications are accepted for any initial license or construction permit, then, except as provided in paragraph (2), the Commission shall grant the license or permit to a qualified applicant through a system of competitive bidding that meets the requirements of this subsection.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Exemptions</inline>.—</heading><chapeau>The competitive bidding authority granted by this subsection shall not apply to licenses or construction permits issued by the Commission—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>for public safety radio services, including private internal radio services used by State and local governments and non-government entities and including emergency road services provided by not-for-profit organizations, that—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>are used to protect the safety of life, health, or property; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>are not made commercially available to the public;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>for initial licenses or construction permits for digital television service given to existing terrestrial broadcast licensees to replace their analog television service licenses; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>for stations described in section 397(6) of this Act.”;<page identifier="/us/stat/111/259">111 STAT. 259</page></content></subparagraph> </paragraph> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>in paragraph (3)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by inserting after the second sentence the following new sentence: “The Commission shall, directly or by contract, provide for the design and conduct (for purposes of testing) of competitive bidding using a contingent combinatorial bidding system that permits prospective bidders to bid on combinations or groups of licenses in a single bid and to enter multiple alternative bids within a single bidding round.”;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking “<quotedText>and</quotedText>” at the end of subparagraph (C);</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>by striking the period at the end of subparagraph (D) and inserting “<quotedText>; and</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="iv">(iv)</num> <content>by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <chapeau>ensure that, in the scheduling of any competitive bidding under this subsection, an adequate period is allowed—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>before issuance of bidding rules, to permit notice and comment on proposed auction procedures; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>after issuance of bidding rules, to ensure that interested parties have a sufficient time to develop business plans, assess market conditions, and evaluate the availability of equipment for the relevant services.”;</content></clause> </subparagraph> </quotedContent> </content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <chapeau>in paragraph (4)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by striking “<quotedText>and</quotedText>” at the end of subparagraph (D);</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking the period at the end of subparagraph (E) and inserting “<quotedText>; and</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>prescribe methods by which a reasonable reserve price will be required, or a minimum bid will be established, to obtain any license or permit being assigned pursuant to the competitive bidding, unless the Commission determines that such a reserve price or minimum bid is not in the public interest.”;</content></subparagraph> </quotedContent> </content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <chapeau>in paragraph (8)(B)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by striking the third sentence; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by adding at the end the following new sentence: “No sums may be retained under this subparagraph during any fiscal year beginning after September 30, 1998, if the annual report of the Commission under section 4(k) for the second preceding fiscal year fails to include in the itemized statement required by paragraph (3) of such section a statement of each expenditure made for purposes of conducting competitive bidding under this subsection during such second preceding fiscal year.”;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>in paragraph (11), by striking “<quotedText>1998</quotedText>” and inserting “<quotedText>2007</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F)</num> <content>in paragraph (13)(F), by striking “<quotedText>September 30, 1998</quotedText>” and inserting “<quotedText>the date of enactment of the Balanced Budget Act of 1997</quotedText>”.<page identifier="/us/stat/111/260">111 STAT. 260</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Termination of lottery authority</inline>.—</heading><chapeau>Section 309(i) of the Communications Act of 1934 (47 U.S.C. 309(i)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking paragraph (1) and inserting the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">General authority</inline>.—</heading><content>Except as provided in paragraph (5), if there is more than one application for any initial license or construction permit, then the Commission shall have the authority to grant such license or permit to a qualified applicant through the use of a system of random selection.”; and</content></paragraph> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent0 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Termination of authority</inline>.—</heading><subparagraph class="inline"><num value="A">(A)</num> <content>Except as provided in subparagraph (B), the Commission shall not issue any license or permit using a system of random selection under this subsection after July 1, 1997.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B)</num> <content>Subparagraph (A) of this paragraph shall not apply with respect to licenses or permits for stations described in section 397(6) of this Act.”.</content></subparagraph> </paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Resolution of pending comparative licensing cases</inline>.—</heading><content>Section 309 of the Communications Act of 1934 (47 U.S.C. 309) is further amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="l">“(l)</num> <heading><inline class="smallCaps">Applicability of competitive bidding to pending comparative licensing cases</inline>.—</heading><chapeau>With respect to competing applications for initial licenses or construction permits for commercial radio or television stations that were filed with the Commission before July 1, 1997, the Commission shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>have the authority to conduct a competitive bidding proceeding pursuant to subsection (j) to assign such license or permit;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>treat the persons filing such applications as the only persons eligible to be qualified bidders for purposes of such proceeding; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>waive any provisions of its regulations necessary to permit such persons to enter an agreement to procure the removal of a conflict between their applications during the 180-day period beginning on the date of enactment of the Balanced Budget Act of 1997.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t47/s309">47 USC 309 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Conforming amendment</inline>.—</heading><content>Section 6002 of the Omnibus Budget Reconciliation Act of 1993 is amended by striking subsection (e).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t47/s309">47 USC 309 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>Except as otherwise provided therein, the amendments made by this subsection are effective on July 1, 1997.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t47/s925">47 USC 925 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Accelerated Availability for Auction of 1,710–1,755 Megahertz From Initial Reallocation Report</inline>.—</heading><content>The band of frequencies located at 1,710–1,755 megahertz identified in the initial reallocation report under section 113(a) of the National Telecommunications and Information Administration Act (47 U.S.C. 923(a)) shall, notwithstanding the timetable recommended under section 113(e) of such Act and section 115(b)(1) of such Act, be available in accordance with this subsection for assignment for commercial use. The Commission shall assign licenses for such use by competitive bidding commenced after January 1, 2001, pursuant to section 309(j) of the Communications Act of 1934 (47 U.S.C. 309(j)).<page identifier="/us/stat/111/261">111 STAT. 261</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Commission Obligation to Make Additional Spectrum Available by Auction</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t47/s295">47 USC 925 note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The Commission shall complete all actions necessary to permit the assignment by September 30, 2002, by competitive bidding pursuant to section 309(j) of the Communications Act of 1934 (47 U.S.C. 309(j)), of licenses for the use of bands of frequencies that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in the aggregate span not less than 55 megahertz;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>are located below 3 gigahertz;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <chapeau>have not, as of the date of enactment of this Act—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>been designated by Commission regulation for assignment pursuant to such section;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>been identified by the Secretary of Commerce pursuant to section 113 of the National Telecommunications and Information Administration Organization Act (47 U.S.C. 923);</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>been allocated for Federal Government use pursuant to section 305 of the Communications Act of 1934 (47 U.S.C. 305);</content></clause> <clause class="indent3 fontsize10"><num value="iv">(iv)</num> <content>been designated for reallocation under section 337 of the Communications Act of 1934 (as added by this Act); or</content></clause> <clause class="indent3 fontsize10"><num value="v">(v)</num> <content>been allocated or authorized for unlicensed use pursuant to part 15 of the Commission’s regulations (47 C.F.R. Part 15), if the operation of services licensed pursuant to competitive bidding would interfere with operation of end-user products permitted under such regulations;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>include frequencies at 2,110–2,150 megahertz; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>include 15 megahertz from within the bands of frequencies at 1,990–2,110 megahertz.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Criteria for reassignment</inline>.—</heading><chapeau>In making available bands of frequencies for competitive bidding pursuant to paragraph (1), the Commission shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>seek to promote the most efficient use of the electromagnetic spectrum;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>consider the cost of relocating existing uses to other bands of frequencies or other means of communication;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>consider the needs of existing public safety radio services (as such services are described in section 309(j)(2)(A) of the Communications Act of 1934, as amended by this Act);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>comply with the requirements of international agreements concerning spectrum allocations; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>coordinate with the Secretary of Commerce when there is any impact on Federal Government spectrum use.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Use of bands at 2,110–2,150 megahertz</inline>.—</heading><content>The Commission shall reallocate spectrum located at 2,110–2,150 megahertz for assignment by competitive bidding unless the Commission determines that auction of other spectrum (A) better serves the public interest, convenience, and necessity, and (B) can reasonably be expected to produce greater receipts. If the Commission makes such a determination, then the Commission shall, within 2 years after the date of enactment of this Act, <page identifier="/us/stat/111/262">111 STAT. 262</page>identify an alternative 40 megahertz, and report to the Congress an identification of such alternative 40 megahertz for assignment by competitive bidding.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Use of 15 megahertz from bands at 1,990–2,110 megahertz</inline>.—</heading><content>The Commission shall reallocate 15 megahertz from spectrum located at 1,990–2,110 megahertz for assignment by competitive bidding unless the President determines such spectrum cannot be reallocated due to the need to protect incumbent Federal systems from interference, and that allocation of other spectrum (A) better serves the public interest, convenience, and necessity, and (B) can reasonably be expected to produce comparable receipts. If the President makes such a determination, then the President shall, within 2 years after the date of enactment of this Act, identify alternative bands of frequencies totalling 15 megahertz, and report to the Congress an identification of such alternative bands for assignment by competitive bidding.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <heading><inline class="smallCaps">Notification to the secretary of commerce</inline>.—</heading><chapeau>The Commission shall attempt to accommodate incumbent licensees displaced under this section by relocating them to other frequencies available for allocation by the Commission. The Commission shall notify the Secretary of Commerce whenever the Commission is not able to provide for the effective relocation of an incumbent licensee to a band of frequencies available to the Commission for assignment. The notification shall include—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>specific information on the incumbent licensee;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>the bands the Commission considered for relocation of the licensee;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>the reasons the licensee cannot be accommodated in such bands; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <chapeau>the bands of frequencies identified by the Commission that are—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>suitable for the relocation of such licensee; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>allocated for Federal Government use, but that could be reallocated pursuant to part B of the National Telecommunications and Information Administration Organization Act (as amended by this Act).</content></clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Identification and Reallocation of Frequencies</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 113 of the National Telecommunications and Information Administration Organization Act (47 U.S.C. 923) is amended by adding at the end thereof the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Additional Reallocation Report</inline>.—</heading><content>If the Secretary receives a notice from the Commission pursuant to section 3002(c)(5) of the Balanced Budget Act of 1997, the Secretary shall prepare and submit to the President, the Commission, and the Congress a report recommending for reallocation for use other than by Federal Government stations under section 305 of the 1934 Act (47 U.S.C. 305), bands of frequencies that are suitable for the licensees identified in the Commission’s notice. The Commission shall, not later than one year after receipt of such report, prepare, submit to the President and the Congress, and implement, a plan for the immediate allocation and assignment of such frequencies under the 1934 Act to incumbent licensees described in the Commission’s notice.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Relocation of Federal Government Stations</inline>.—<page identifier="/us/stat/111/263">111 STAT. 263</page></heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In order to expedite the commercial use of the electromagnetic spectrum and notwithstanding section 3302(b) of title 31, United States Code, any Federal entity which operates a Federal Government station may accept from any person payment of the expenses of relocating the Federal entity’s operations from one or more frequencies to another frequency or frequencies, including the costs of any modification, replacement, or reissuance of equipment, facilities, operating manuals, or regulations incurred by that entity. Such payments may be in advance of relocation and may be in cash or in kind. Any such payment in cash shall be deposited in the account of such Federal entity in the Treasury of the United States or in a separate account authorized by law. Funds deposited according to this paragraph shall be available, without appropriation or fiscal year limitation, only for such expenses of the Federal entity for which such funds were deposited under this paragraph.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Process for relocation</inline>.—</heading><chapeau>Any person seeking to relocate a Federal Government station that has been assigned a frequency within a band that has been allocated for mixed Federal and non-Federal use, or that has been scheduled for reallocation to non-Federal use, may submit a petition for such relocation to NTIA. The NTIA shall limit or terminate the Federal Government station’s operating license within 6 months after receiving the petition if the following requirements are met:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the person seeking relocation of the Federal Government station has guaranteed to pay all relocation costs incurred by the Federal entity, including all engineering, equipment, site acquisition and construction, and regulatory fee costs;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>all activities necessary for implementing the relocation have been completed, including construction of replacement facilities (if necessary and appropriate) and identifying and obtaining new frequencies for use by the relocated Federal Government station (where such station is not relocating to spectrum reserved exclusively for Federal use);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>any necessary replacement facilities, equipment modifications, or other changes have been implemented and tested to ensure that the Federal Government station is able to successfully accomplish its purposes; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <chapeau>NTIA has determined that the proposed use of the spectrum frequency band to which the Federal entity will relocate its operations is—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>consistent with obligations undertaken by the United States in international agreements and with United States national security and public safety interests; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>suitable for the technical characteristics of the band and consistent with other uses of the band.</content></clause> <continuation class="indent0 fontsize10">In exercising its authority under clause (i) of this subparagraph, NTIA shall consult with the Secretary of Defense, the Secretary of State, or other appropriate officers of the Federal Government.</continuation> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Right to reclaim</inline>.—</heading><content>If within one year after the relocation the Federal entity demonstrates to the Commission that <page identifier="/us/stat/111/264">111 STAT. 264</page>the new facilities or spectrum are not comparable to the facilities or spectrum from which the Federal Government station was relocated, the person who filed the petition under paragraph (2) for such relocation shall take reasonable steps to remedy any defects or pay the Federal entity for the expenses incurred in returning the Federal Government station to the spectrum from which such station was relocated.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Federal Action to Expedite Spectrum Transfer</inline>.—</heading><content>Any Federal Government station which operates on electromagnetic spectrum that has been identified in any reallocation report under this section shall, to the maximum extent practicable through the use of the authority granted under subsection (g) and any other applicable provision of law, take action to relocate its spectrum use to other frequencies that are reserved for Federal use or to consolidate its spectrum use with other Federal Government stations in a manner that maximizes the spectrum available for non-Federal use.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="i">“(i)</num> <heading><inline class="smallCaps">Definition</inline>.—</heading><content>For purposes of this section, the term ‘Federal entity’ means any department, agency, or other instrumentality of the Federal Government that utilizes a Government station license obtained under section 305 of the 1934 Act (47 U.S.C. 305).”.</content> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>Section 114(a) of such Act (47 U.S.C. 924(a)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in paragraph (1), by striking “<quotedText>(a) or (d)(1)</quotedText>” and inserting “<quotedText>(a), (d)(1), or (f)</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in paragraph (2), by striking “<quotedText>either</quotedText>” and inserting “<quotedText>any</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Identification and Reallocation of Auctionable Frequencies</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Second report required</inline>.—</heading><content>Section 113(a) of the National Telecommunications and Information Administration Organization Act (47 U.S.C. 923(a)) is amended by inserting “<quotedText>and within 6 months after the date of enactment of the Balanced Budget Act of 1997</quotedText>” after “Act of 1993”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Section 113(b) of such Act (47 U.S.C. 923(b)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking the caption of paragraph (1) and inserting “<quotedText>INITIAL REALLOCATION REPORT.—</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by inserting “<quotedText>in the initial report required by subsection (a)</quotedText>” after “recommend for reallocation” in paragraph (1);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by inserting “<quotedText>or (3)</quotedText>” after “paragraph (1)” each place it appears in paragraph (2); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>by adding at the end thereof the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Second reallocation report</inline>.—</heading><chapeau>In accordance with the provisions of this section, the Secretary shall recommend for reallocation in the second report required by subsection (a), for use other than by Federal Government stations under section 305 of the 1934 Act (47 U.S.C. 305), a band or bands of frequencies that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>in the aggregate span not less than 20 megahertz;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>are located below 3 gigahertz; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>meet the criteria specified in paragraphs (1) through (5) of subsection (a).”.<page identifier="/us/stat/111/265">111 STAT. 265</page></content></subparagraph> </paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Conforming amendment</inline>.—</heading><content>Section 113(d) of such Act (47 U.S.C. 923(d)) is amended by striking “<quotedText>final report</quotedText>” and inserting “<quotedText>initial report</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Allocation and assignment</inline>.—</heading><chapeau>Section 115 of such Act (47 U.S.C. 925) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>the report required by section 113(a)</quotedText>” in subsection (b) and inserting “<quotedText>the initial reallocation report required by section 113(a)</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by adding at the end thereof the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Allocation and Assignment of Frequencies Identified in the Second Reallocation Report</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Plan and implementation</inline>.—</heading><content>With respect to the frequencies made available for reallocation pursuant to section 113(b)(3), the Commission shall, not later than one year after receipt of the second reallocation report required by section 113(a), prepare, submit to the President and the Congress, and implement, a plan for the immediate allocation and assignment under the 1934 Act of all such frequencies in accordance with section 309(j) of such Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Contents</inline>.—</heading><content>The plan prepared by the Commission under paragraph (1) shall consist of a schedule of allocation and assignment of those frequencies in accordance with section 309(j) of the 1934 Act in time for the assignment of those licenses or permits by September 30, 2002.”.</content></paragraph> </subsection> </quotedContent> </content></subparagraph> </paragraph> </subsection> </section> <section> <num value="3003">SEC. 3003.</num> <heading>AUCTION OF RECAPTURED BROADCAST TELEVISION SPECTRUM.</heading> <content>Section 309(j) of the Communications Act of 1934 (47 U.S.C. 309(j)) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="14">“(14)</num> <heading><inline class="smallCaps">Auction of recaptured broadcast television spectrum</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Limitations on terms of terrestrial television broadcast licenses</inline>.—</heading><content>A television broadcast license that authorizes analog television service may not be renewed to authorize such service for a period that extends beyond December 31, 2006.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Extension</inline>.—</heading><chapeau>The Commission shall extend the date described in subparagraph (A) for any station that requests such extension in any television market if the Commission finds that—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>one or more of the stations in such market that are licensed to or affiliated with one of the four largest national television networks are not broadcasting a digital television service signal, and the Commission finds that each such station has exercised due diligence and satisfies the conditions for an extension of the Commission’s applicable construction deadlines for digital television service in that market;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>digital-to-analog converter technology is not generally available in such market; or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <chapeau>in any market in which an extension is not available under clause (i) or (ii), 15 percent or more of the television households in such market—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>do not subscribe to a multichannel video programming distributor (as defined in section <page identifier="/us/stat/111/266">111 STAT. 266</page>602) that carries one of the digital television service programming channels of each of the television stations broadcasting such a channel in such market; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <chapeau>do not have either—</chapeau> <item class="indent5 fontsize10"><num value="a">“(a)</num> <content>at least one television receiver capable of receiving the digital television service signals of the television stations licensed in such market; or</content></item> <item class="indent5 fontsize10"><num value="b">“(b)</num> <content>at least one television receiver of analog television service signals equipped with digital-to-analog converter technology capable of receiving the digital television service signals of the television stations licensed in such market.</content></item> </subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Spectrum reversion and resale</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <chapeau>The Commission shall—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>ensure that, as licenses for analog television service expire pursuant to subparagraph (A) or (B), each licensee shall cease using electromagnetic spectrum assigned to such service according to the Commission’s direction; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>reclaim and organize the electromagnetic spectrum in a manner consistent with the objectives described in paragraph (3) of this subsection.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>Licensees for new services occupying spectrum reclaimed pursuant to clause (i) shall be assigned in <sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote>accordance with this subsection. The Commission shall complete the assignment of such licenses, and report to the Congress the total revenues from such competitive bidding, by September 30, 2002.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Certain limitations on qualified bidders prohibited</inline>.—</heading><chapeau>In prescribing any regulations relating to the qualification of bidders for spectrum reclaimed pursuant to subparagraph (C)(i), the Commission, for any license that may be used for any digital television service where the grade A contour of the station is projected to encompass the entirety of a city with a population in excess of 400,000 (as determined using the 1990 decennial census), shall not—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <chapeau>preclude any party from being a qualified bidder for such spectrum on the basis of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the Commission’s duopoly rule (47 C.F.R. 73.3555(b)); or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the Commission’s newspaper cross-ownership rule (47 C.F.R. 73.3555(d)); or</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>apply either such rule to preclude such a party that is a winning bidder in a competitive bidding for such spectrum from using such spectrum for digital television service.”.</content></clause> </subparagraph> </paragraph> </quotedContent> </content></section> <section> <num value="3004">SEC. 3004.</num> <heading>ALLOCATION AND ASSIGNMENT OF NEW PUBLIC SAFETY SERVICES LICENSES AND COMMERCIAL LICENSES.</heading> <content>Title III of the Communications Act of 1934 is amended by inserting after section 336 (47 U.S.C. 336) the following new section:<page identifier="/us/stat/111/267">111 STAT. 267</page> <quotedContent> <section> <num value="337">“SEC. 337.</num> <heading>ALLOCATION AND ASSIGNMENT OF NEW PUBLIC SAFETY 47 USC 337. SERVICES LICENSES AND COMMERCIAL LICENSES.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t47/s337">47 USC 337</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Not later than January 1, 1998, the Commission shall allocate the electromagnetic spectrum between 746 megahertz and 806 megahertz, inclusive, as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>24 megahertz of that spectrum for public safety services according to the terms and conditions established by the Commission, in consultation with the Secretary of Commerce and the Attorney General; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>36 megahertz of that spectrum for commercial use to be assigned by competitive bidding pursuant to section 309(j).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Assignment</inline>.—</heading><chapeau>The Commission shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>commence assignment of the licenses for public safety services created pursuant to subsection (a) no later than September 30, 1998; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>commence competitive bidding for the commercial licenses created pursuant to subsection (a) after January 1, 2001.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Licensing of Unused Frequencies for Public Safety Services</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Use of Unused Channels for Public Safety Services</inline>.—</heading><chapeau>Upon application by an entity seeking to provide public safety services, the Commission shall waive any requirement of this Act or its regulations implementing this Act (other than its regulations regarding harmful interference) to the extent necessary to permit the use of unassigned frequencies for the provision of public safety services by such entity. An application shall be granted under this subsection if the Commission finds that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>no other spectrum allocated to public safety services is immediately available to satisfy the requested public safety service use;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the requested use is technically feasible without causing harmful interference to other spectrum users entitled to protection from such interference under the Commission’s regulations;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>the use of the unassigned frequency for the provision of public safety services is consistent with other allocations for the provision of such services in the geographic area for which the application is made;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>the unassigned frequency was allocated for its present use not less than 2 years prior to the date on which the application is granted; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>granting such application is consistent with the public interest.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Applicability</inline>.—</heading><content>Paragraph (1) shall apply to any application to provide public safety services that is pending or filed on or after the date of enactment of the Balanced Budget Act of 1997.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Conditions on Licenses</inline>.—</heading><chapeau>In establishing service rules with respect to licenses granted pursuant to this section, the Commission—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>shall establish interference limits at the boundaries of the spectrum block and service area;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>shall establish any additional technical restrictions necessary to protect full-service analog television service and <page identifier="/us/stat/111/268">111 STAT. 268</page>digital television service during a transition to digital television service;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <chapeau>may permit public safety services licensees and commercial licensees—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>to aggregate multiple licenses to create larger spectrum blocks and service areas; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>to disaggregate or partition licenses to create smaller spectrum blocks or service areas; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>shall establish rules insuring that public safety services licensees using spectrum reallocated pursuant to subsection (a)(1) shall not be subject to harmful interference from television broadcast licensees.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Removal and Relocation of Incumbent Broadcast Licensees</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Channels 60 to 69</inline>.—</heading><content>Any person who holds a television broadcast license to operate between 746 and 806 megahertz may not operate at that frequency after the date on which the digital television service transition period terminates, as determined by the Commission.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Incumbent qualifying low-power stations</inline>.—</heading><content>After making any allocation or assignment under this section, the Commission shall seek to assure, consistent with the Commission’s plan for allotments for digital television service, that each qualifying low-power television station is assigned a frequency below 746 megahertz to permit the continued operation of such station.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Public safety services</inline>.—</heading><chapeau>The term ‘public safety services’ means services—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the sole or principal purpose of which is to protect the safety of life, health, or property;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>that are provided—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>by State or local government entities; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>by nongovernmental organizations that are authorized by a governmental entity whose primary mission is the provision of such services; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>that are not made commercially available to the public by the provider.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Qualifying low-power television stations</inline>.—</heading><chapeau>A station is a qualifying low-power television station if, during the 90 days preceding the date of enactment of the Balanced Budget Act of 1997—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>such station broadcast a minimum of 18 hours per day;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>such station broadcast an average of at least 3 hours per week of programming that was produced within the market area served by such station; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>such station was in compliance with the requirements applicable to low-power television stations.”.</content></subparagraph> </paragraph> </subsection> </section> </quotedContent> </content></section> <section> <num value="3005">SEC. 3005.</num> <heading>FLEXIBLE USE OF ELECTROMAGNETIC SPECTRUM.</heading> <content>Section 303 of the Communications Act of 1934 (47 U.S.C. 303) is amended by adding at the end thereof the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="y">“(y)</num> <chapeau>Have authority to allocate electromagnetic spectrum so as to provide flexibility of use, if—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>such use is consistent with international agreements to which the United States is a party; and<page identifier="/us/stat/111/269">111 STAT. 269</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <chapeau>the Commission finds, after notice and an opportunity for public comment, that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>such an allocation would be in the public interest;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>such use would not deter investment in communications services and systems, or technology development; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>such use would not result in harmful interference among users.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></section> <section> <num value="3006">SEC. 3006.</num> <heading>UNIVERSAL SERVICE FUND PAYMENT SCHEDULE.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t47/s254">47 USC 254 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Appropriations to the Universal Service Fund</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Appropriation</inline>.—</heading><content>There is hereby appropriated to the Commission $3,000,000,000 in fiscal year 2001, which shall be disbursed on October 1, 2000, to the Administrator of the Federal universal service support programs established pursuant to section 254 of the Communications Act of 1934 (47 U.S.C. 254), and which may be expended by the Administrator in support of such programs as provided pursuant to the rules implementing that section.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Return to treasury</inline>.—</heading><content>The Administrator shall transfer $3,000,000,000 from the funds collected for such support programs to the General Fund of the Treasury on October 1, 2001.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Fee Adjustments</inline>.—</heading><content>The Commission shall direct the Administrator to adjust payments by telecommunications carriers and other providers of interstate telecommunications so that the $3,000,000,000 of the total payments by such carriers or providers to the Administrator for fiscal year 2001 shall be deferred until October 1, 2001.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Preservation of Authority</inline>.—</heading><content>Nothing in this section shall affect the Administrator’s authority to determine the amounts that should be expended for universal service support programs pursuant to section 254 of the Communications Act of 1934 and the rules implementing that section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Definition</inline>.—</heading><content>For purposes of this section, the term “Administrator” means the Administrator designated by the Federal Communications Commission to administer Federal universal service support programs pursuant to section 254 of the Communications Act of 1934.</content> </subsection> </section> <section> <num value="3007">SEC. 3007.</num> <heading>DEADLINE FOR COLLECTION.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t47/s309">47 USC 309 note</ref>.</p></sidenote> <content>The Commission shall conduct the competitive bidding required under this title or the amendments made by this title in a manner that ensures that all proceeds of such bidding are deposited in accordance with section 309(j)(8) of the Communications Act of 1934 not later than September 30, 2002.</content> </section> <section> <num value="3008">SEC. 3008.</num> <heading>ADMINISTRATIVE PROCEDURES FOR SPECTRUM AUCTIONS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t47/s309">47 USC 309 note</ref>.</p></sidenote> <content>Notwithstanding section 309(b) of the Communications Act of 1934 (47 U.S.C. 309(b)), no application for an instrument of authorization for frequencies assigned under this title (or amendments made by this title) shall be granted by the Commission earlier than 7 days following issuance of public notice by the Commission of the acceptance for filing of such application or of any substantial amendment thereto. Notwithstanding section 309(d)(1) of such Act (47 U.S.C. 309(d)(1)), the Commission may specify a period (no less than 5 days following issuance of such <page identifier="/us/stat/111/270">111 STAT. 270</page>public notice) for the filing of petitions to deny any application for an instrument of authorization for such frequencies.</content> </section> <num value="IV">TITLE IV—</num><heading>MEDICARE, MEDICAID, AND CHILDREN’S HEALTH PROVISIONS</heading> <section> <num value="4000">SEC. 4000.</num> <heading>AMENDMENTS TO SOCIAL SECURITY ACT AND REFERENCES TO OBRA; TABLE OF CONTENTS OF TITLE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Amendments to Social Security Act</inline>.—</heading><content>Except as otherwise specifically provided, whenever in this title an amendment is expressed in terms of an amendment to or repeal of a section or other provision, the reference shall be considered to be made to that section or other provision of the Social Security Act.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">References to OBRA</inline>.—</heading><content>In this title, the terms “OBRA–1986”, “OBRA–1987”, “OBRA–1989”, “OBRA–1990”, and “OBRA–1993” refer to the Omnibus Budget Reconciliation Act of 1986 (Public Law 99–509), the Omnibus Budget Reconciliation Act of 1987 (Public Law 100–203), the Omnibus Budget Reconciliation Act of 1989 (Public Law 101–239), the Omnibus Budget Reconciliation Act of 1990 (Public Law 101–508), and the Omnibus Budget Reconciliation Act of 1993 (Public Law 103–66), respectively.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Table of Contents of Title</inline>.—</heading><content>The table of contents of this title is as follows: <toc> <referenceItem role="section"><designator>Sec. 4000.</designator> <label>Amendments to Social Security Act and references to OBRA; table of contents of title.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle A—</designator><label>Medicare+Choice Program</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 1—</designator><label>MEDICARE+CHOICE PROGRAM</label></referenceItem> <referenceItem role="subchapter"><designator>SUBCHAPTER A—</designator><label>MEDICARE+CHOICE PROGRAM</label></referenceItem> <referenceItem role="section"><designator>Sec. 4001.</designator> <label>Establishment of Medicare+Choice program.</label></referenceItem> <referenceItem role="part"><designator>“PART C—</designator><label>MEDICARE+CHOICE PROGRAM</label></referenceItem> <referenceItem role="section"><designator>“Sec. 1851.</designator> <label>Eligibility, election, and enrollment.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 1852.</designator> <label>Benefits and beneficiary protections.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 1853.</designator> <label>Payments to Medicare+Choice organizations.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 1854.</designator> <label>Premiums.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 1855.</designator> <label>Organizational and financial requirements for Medicare+Choice organizations; provider-sponsored organizations.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 1856.</designator> <label>Establishment of standards.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 1857.</designator> <label>Contracts with Medicare+Choice organizations.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 1859.</designator> <label>Definitions; miscellaneous provisions.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4002.</designator> <label>Transitional rules for current medicare HMO program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4003.</designator> <label>Conforming changes in medigap program.</label></referenceItem> <referenceItem role="subchapter"><designator>SUBCHAPTER B—</designator><label>SPECIAL RULES FOR MEDICARE+CHOICE MEDICAL SAVINGS ACCOUNTS</label></referenceItem> <referenceItem role="section"><designator>Sec. 4006.</designator> <label>Medicare+Choice MSA.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 2—</designator><label>DEMONSTRATIONS</label></referenceItem> <referenceItem role="subchapter"><designator>SUBCHAPTER A—</designator><label>MEDICARE+CHOICE COMPETITIVE PRICING DEMONSTRATION PROJECT</label></referenceItem> <referenceItem role="section"><designator>Sec. 4011.</designator> <label>Medicare prepaid competitive pricing demonstration project.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4012.</designator> <label>Administration through the Office of Competition; advisory committee.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4013.</designator> <label>Project design based on FEHBP competitive bidding model.</label></referenceItem> <referenceItem role="subchapter"><designator>SUBCHAPTER B—</designator><label>SOCIAL HEALTH MAINTENANCE ORGANIZATIONS</label></referenceItem> <referenceItem role="section"><designator>Sec. 4014.</designator> <label>Social health maintenance organizations (SHMOs).</label></referenceItem> <referenceItem role="subchapter"><designator>SUBCHAPTER C—</designator><label>MEDICARE SUBVENTION DEMONSTRATION PROJECT FOR MILITARY RETIREES</label></referenceItem> <referenceItem role="section"><designator>Sec. 4015.</designator> <label>Medicare subvention demonstration project for military retirees.</label></referenceItem> <referenceItem role="subchapter"><designator>SUBCHAPTER D—</designator><label>OTHER PROJECTS</label></referenceItem> <referenceItem role="section"><designator>Sec. 4016.</designator> <label>Medicare coordinated care demonstration project.<page identifier="/us/stat/111/271">111 STAT. 271</page></label></referenceItem> <referenceItem role="section"><designator>Sec. 4017.</designator> <label>Orderly transition of municipal health service demonstration projects.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4018.</designator> <label>Medicare enrollment demonstration project.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4019.</designator> <label>Extension of certain medicare community nursing organization demonstration projects.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 3—</designator><label>COMMISSIONS</label></referenceItem> <referenceItem role="section"><designator>Sec. 4021.</designator> <label>National Bipartisan Commission on the Future of Medicare.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4022.</designator> <label>Medicare Payment Advisory Commission.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 4—</designator><label>MEDIGAP PROTECTIONS</label></referenceItem> <referenceItem role="section"><designator>Sec. 4031.</designator> <label>Medigap protections.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4032.</designator> <label>Addition of high deductible medigap policies.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 5—</designator><label>TAX TREATMENT OF HOSPITALS PARTICIPATING IN PROVIDER-SPONSORED ORGANIZATIONS</label></referenceItem> <referenceItem role="section"><designator>Sec. 4041.</designator> <label>Tax treatment of hospitals which participate in provider-sponsored organizations.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle B—</designator><label>Prevention Initiatives</label></referenceItem> <referenceItem role="section"><designator>Sec. 4101.</designator> <label>Screening mammography.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4102.</designator> <label>Screening pap smear and pelvic exams.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4103.</designator> <label>Prostate cancer screening tests.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4104.</designator> <label>Coverage of colorectal screening.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4105.</designator> <label>Diabetes self-management benefits.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4106.</designator> <label>Standardization of medicare coverage of bone mass measurements.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4107.</designator> <label>Vaccines outreach expansion.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4108.</designator> <label>Study on preventive and enhanced benefits.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle C—</designator><label>Rural Initiatives</label></referenceItem> <referenceItem role="section"><designator>Sec. 4201.</designator> <label>Medicare rural hospital flexibility program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4202.</designator> <label>Prohibiting denial of request by rural referral centers for reclassification on basis of comparability of wages.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4203.</designator> <label>Hospital geographic reclassification permitted for purposes of disproportionate share payment adjustments.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4204.</designator> <label>Medicare-dependent, small rural hospital payment extension.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4205.</designator> <label>Rural health clinic services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4206.</designator> <label>Medicare reimbursement for telehealth services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4207.</designator> <label>Informatics, telemedicine, and education demonstration project.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle D—</designator><label>Anti-Fraud and Abuse Provisions and Improvements in Protecting Program Integrity</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 1—</designator><label>REVISIONS TO SANCTIONS FOR FRAUD AND ABUSE</label></referenceItem> <referenceItem role="section"><designator>Sec. 4301.</designator> <label>Permanent exclusion for those convicted of 3 health care related crimes.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4302.</designator> <label>Authority to refuse to enter into medicare agreements with individuals or entities convicted of felonies.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4303.</designator> <label>Exclusion of entity controlled by family member of a sanctioned individual.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4304.</designator> <label>Imposition of civil money penalties.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 2—</designator><label>IMPROVEMENTS IN PROTECTING PROGRAM INTEGRITY</label></referenceItem> <referenceItem role="section"><designator>Sec. 4311.</designator> <label>Improving information to medicare beneficiaries.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4312.</designator> <label>Disclosure of information and surety bonds.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4313.</designator> <label>Provision of certain identification numbers.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4314.</designator> <label>Advisory opinions regarding certain physician self-referral provisions.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4315.</designator> <label>Replacement of reasonable charge methodology by fee schedules.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4316.</designator> <label>Application of inherent reasonableness to all part B services other than physicians’ services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4317.</designator> <label>Requirement to furnish diagnostic information.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4318.</designator> <label>Report by GAO on operation of fraud and abuse control program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4319.</designator> <label>Competitive bidding demonstration projects.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4320.</designator> <label>Prohibiting unnecessary and wasteful medicare payments for certain items.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4321.</designator> <label>Nondiscrimination in post-hospital referral to home health agencies and other entities.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 3—</designator><label>CLARIFICATIONS AND TECHNICAL CHANGES</label></referenceItem> <referenceItem role="section"><designator>Sec. 4331.</designator> <label>Other fraud and abuse related provisions.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle E—</designator><label>Provisions Relating to Part A Only</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 1—</designator><label>PAYMENT OF PPS HOSPITALS</label></referenceItem> <referenceItem role="section"><designator>Sec. 4401.</designator> <label>PPS hospital payment update.<page identifier="/us/stat/111/272">111 STAT. 272</page></label></referenceItem> <referenceItem role="section"><designator>Sec. 4402.</designator> <label>Maintaining savings from temporary reduction in capital payments for PPS hospitals.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4403.</designator> <label>Disproportionate share.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4404.</designator> <label>Medicare capital asset sales price equal to book value.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4405.</designator> <label>Elimination of IME and DSH payments attributable to outlier payments.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4406.</designator> <label>Increase base payment rate to Puerto Rico hospitals.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4407.</designator> <label>Certain hospital discharges to post acute care.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4408.</designator> <label>Reclassification of certain counties as large urban areas under medicare.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4409.</designator> <label>Geographic reclassification for certain disproportionately large hospitals.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4410.</designator> <label>Floor on area wage index.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 2—</designator><label>PAYMENT OF PPS-EXEMPT HOSPITALS</label></referenceItem> <referenceItem role="subchapter"><designator>SUBCHAPTER A—</designator><label>GENERAL PAYMENT PROVISIONS</label></referenceItem> <referenceItem role="section"><designator>Sec. 4411.</designator> <label>Payment update.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4412.</designator> <label>Reductions to capital payments for certain PPS-exempt hospitals and units.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4413.</designator> <label>Rebasing.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4414.</designator> <label>Cap on TEFRA limits.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4415.</designator> <label>Bonus and relief payments.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4416.</designator> <label>Change in payment and target amount for new providers.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4417.</designator> <label>Treatment of certain long-term care hospitals.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4418.</designator> <label>Treatment of certain cancer hospitals.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4419.</designator> <label>Elimination of exemptions for certain hospitals.</label></referenceItem> <referenceItem role="subchapter"><designator>SUBCHAPTER B—</designator><label>PROSPECTIVE PAYMENT SYSTEM FOR PPS-EXEMPT HOSPITALS</label></referenceItem> <referenceItem role="section"><designator>Sec. 4421.</designator> <label>Prospective payment for inpatient rehabilitation hospital services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4422.</designator> <label>Development of proposal on payments for long-term care hospitals.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 3—</designator><label>PAYMENT FOR SKILLED NURSING FACILITIES</label></referenceItem> <referenceItem role="section"><designator>Sec. 4431.</designator> <label>Extension of cost limits.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4432.</designator> <label>Prospective payment for skilled nursing facility services.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 4—</designator><label>PROVISIONS RELATED TO HOSPICE SERVICES</label></referenceItem> <referenceItem role="section"><designator>Sec. 4441.</designator> <label>Payments for hospice services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4442.</designator> <label>Payment for home hospice care based on location where care is furnished.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4443.</designator> <label>Hospice care benefits periods.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4444.</designator> <label>Other items and services included in hospice care.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4445.</designator> <label>Contracting with independent physicians or physician groups for hospice care services permitted.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4446.</designator> <label>Waiver of certain staffing requirements for hospice care programs in nonurbanized areas.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4447.</designator> <label>Limitation on liability of beneficiaries for certain hospice coverage denials.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4448.</designator> <label>Extending the period for physician certification of an individual’s terminal illness.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4449.</designator> <label>Effective date.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 5—</designator><label>OTHER PAYMENT PROVISIONS</label></referenceItem> <referenceItem role="section"><designator>Sec. 4451.</designator> <label>Reductions in payments for enrollee bad debt.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4452.</designator> <label>Permanent extension of hemophilia pass-through payment.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4453.</designator> <label>Reduction in part A medicare premium for certain public retirees.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4454.</designator> <label>Coverage of services in religious nonmedical health care institutions under the medicare and medicaid programs.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle F—</designator><label>Provisions Relating to Part B Only</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 1—</designator><label>SERVICES OF HEALTH PROFESSIONALS</label></referenceItem> <referenceItem role="subchapter"><designator>SUBCHAPTER A—</designator><label>PHYSICIANS’ SERVICES</label></referenceItem> <referenceItem role="section"><designator>Sec. 4501.</designator> <label>Establishment of single conversion factor for 1998.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4502.</designator> <label>Establishing update to conversion factor to match spending under sustainable growth rate.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4503.</designator> <label>Replacement of volume performance standard with sustainable growth rate.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4504.</designator> <label>Payment rules for anesthesia services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4505.</designator> <label>Implementation of resource-based methodologies.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4506.</designator> <label>Dissemination of information on high per discharge relative values for in-hospital physicians’ services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4507.</designator> <label>Use of private contracts by medicare beneficiaries.<page identifier="/us/stat/111/273">111 STAT. 273</page></label></referenceItem> <referenceItem role="subchapter"><designator>SUBCHAPTER B—</designator><label>OTHER HEALTH CARE PROFESSIONALS</label></referenceItem> <referenceItem role="section"><designator>Sec. 4511.</designator> <label>Increased medicare reimbursement for nurse practitioners and clinical nurse specialists.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4512.</designator> <label>Increased medicare reimbursement for physician assistants.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4513.</designator> <label>No x-ray required for chiropractic services</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 2—</designator><label>PAYMENT FOR HOSPITAL OUTPATIENT DEPARTMENT SERVICES</label></referenceItem> <referenceItem role="section"><designator>Sec. 4521.</designator> <label>Elimination of formula-driven overpayments (FDO) for certain outpatient hospital services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4522.</designator> <label>Extension of reductions in payments for costs of hospital outpatient services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4523.</designator> <label>Prospective payment system for hospital outpatient department services.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 3—</designator><label>AMBULANCE SERVICES</label></referenceItem> <referenceItem role="section"><designator>Sec. 4531.</designator> <label>Payments for ambulance services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4532.</designator> <label>Demonstration of coverage of ambulance services under medicare through contracts with units of local government.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 4—</designator><label>PROSPECTIVE PAYMENT FOR OUTPATIENT REHABILITATION SERVICES</label></referenceItem> <referenceItem role="section"><designator>Sec. 4541.</designator> <label>Prospective payment for outpatient rehabilitation services.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 5—</designator><label>OTHER PAYMENT PROVISIONS</label></referenceItem> <referenceItem role="section"><designator>Sec. 4551.</designator> <label>Payments for durable medical equipment.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4552.</designator> <label>Oxygen and oxygen equipment.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4553.</designator> <label>Reduction in updates to payment amounts for clinical diagnostic laboratory tests; study on laboratory tests.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4554.</designator> <label>Improvements in administration of laboratory tests benefit.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4555.</designator> <label>Updates for ambulatory surgical services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4556.</designator> <label>Reimbursement for drugs and biologicals.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4557.</designator> <label>Coverage of oral anti-nausea drugs under chemotherapeutic regimen.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4558.</designator> <label>Renal dialysis-related services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4559.</designator> <label>Temporary coverage restoration for portable electrocardiogram transportation.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 6—</designator><label>PART B PREMIUM AND RELATED PROVISIONS</label></referenceItem> <referenceItem role="subchapter"><designator>SUBCHAPTER A—</designator><label>DETERMINATION OF PART B PREMIUM AMOUNT</label></referenceItem> <referenceItem role="section"><designator>Sec. 4571.</designator> <label>Part B premium.</label></referenceItem> <referenceItem role="subchapter"><designator>SUBCHAPTER B—</designator><label>OTHER PROVISIONS RELATED TO PART B PREMIUM</label></referenceItem> <referenceItem role="section"><designator>Sec. 4581.</designator> <label>Protections under the medicare program for disabled workers who lose benefits under a group health plan.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4582.</designator> <label>Governmental entities eligible to elect to pay part B premiums for eligible individuals.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle G—</designator><label>Provisions Relating to Parts A and B</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 1—</designator><label>HOME HEALTH SERVICES AND BENEFITS</label></referenceItem> <referenceItem role="subchapter"><designator>SUBCHAPTER A—</designator><label>PAYMENTS FOR HOME HEALTH SERVICES</label></referenceItem> <referenceItem role="section"><designator>Sec. 4601.</designator> <label>Recapturing savings resulting from temporary freeze on payment increases for 1tome health services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4602.</designator> <label>Interim payments for home health services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4603.</designator> <label>Prospective payment for home health services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4604.</designator> <label>Payment based on location where home health service is furnished.</label></referenceItem> <referenceItem role="subchapter"><designator>SUBCHAPTER B—</designator><label>HOME HEALTH BENEFITS</label></referenceItem> <referenceItem role="section"><designator>Sec. 4611.</designator> <label>Modification of part A home health benefit for individuals enrolled under part B.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4612.</designator> <label>Clarification of part-time or intermittent nursing care.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4613.</designator> <label>Study on definition of homebound.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4614.</designator> <label>Normative standards for home health claims denials.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4615.</designator> <label>No home health benefits based solely on drawing blood.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4616.</designator> <label>Reports to Congress regarding home health cost containment.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 2—</designator><label>GRADUATE MEDICAL EDUCATION</label></referenceItem> <referenceItem role="subchapter"><designator>SUBCHAPTER A—</designator><label>INDIRECT MEDICAL EDUCATION</label></referenceItem> <referenceItem role="section"><designator>Sec. 4621.</designator> <label>Indirect graduate medical education payments.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4622.</designator> <label>Payment to hospitals of indirect medical education costs for Medicare+Choice enrollees.<page identifier="/us/stat/111/274">111 STAT. 274</page></label></referenceItem> <referenceItem role="subchapter"><designator>SUBCHAPTER B—</designator><label>DIRECT GRADUATE MEDICAL EDUCATION</label></referenceItem> <referenceItem role="section"><designator>Sec. 4623.</designator> <label>Limitation on number of residents and rolling average FTE count.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4624.</designator> <label>Payments to hospitals for direct costs of graduate medical education of Medicare+Choice enrollees.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4625.</designator> <label>Permitting payment to nonhospital providers.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4626.</designator> <label>Incentive payments under plans for voluntary reduction in number of residents.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4627.</designator> <label>Medicare special reimbursement rule for primary care combined residency programs.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4628.</designator> <label>Demonstration project on use of consortia.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4629.</designator> <label>Recommendations on long-term policies regarding teaching hospitals and graduate medical education.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4630.</designator> <label>Study of hospital overhead and supervisory physician components of direct medical education costs.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 3—</designator><label>PROVISIONS RELATING TO MEDICARE SECONDARY PAYER</label></referenceItem> <referenceItem role="section"><designator>Sec. 4631.</designator> <label>Permanent extension and revision of certain secondary payer provisions.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4632.</designator> <label>Clarification of time and filing limitations.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4633.</designator> <label>Permitting recovery against third party administrators.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 4—</designator><label>OTHER PROVISIONS</label></referenceItem> <referenceItem role="section"><designator>Sec. 4641.</designator> <label>Placement of advance directive in medical record.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4642.</designator> <label>Increased certification period for certain organ procurement organizations.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4643.</designator> <label>Office of the Chief Actuary in the Health Care Financing Administration.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4644.</designator> <label>Conforming amendments to comply with congressional review of agency rulemaking.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle H—</designator><label>Medicaid</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 1—</designator><label>MANAGED CARE</label></referenceItem> <referenceItem role="section"><designator>Sec. 4701.</designator> <label>State option of using managed care; change in terminology.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4702.</designator> <label>Primary care case management services as State option without need for waiver.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4703.</designator> <label>Elimination of 75:25 restriction on risk contracts.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4704.</designator> <label>Increased beneficiary protections.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4705.</designator> <label>Quality assurance standards.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4706.</designator> <label>Solvency standards.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4707.</designator> <label>Protections against fraud and abuse.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4708.</designator> <label>Improved administration.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4709.</designator> <label>6-month guaranteed eligibility for all individuals enrolled in managed care.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4710.</designator> <label>Effective dates.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 2—</designator><label>FLEXIBILITY IN PAYMENT OF PROVIDERS</label></referenceItem> <referenceItem role="section"><designator>Sec. 4711.</designator> <label>Flexibility in payment methods for hospital, nursing facility, ICF/MR, and home health services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4712.</designator> <label>Payment for center and clinic services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4713.</designator> <label>Elimination of obstetrical and pediatric payment rate requirements.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4714.</designator> <label>Medicaid payment rates for certain medicare cost-sharing.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4715.</designator> <label>Treatment of veterans’ pensions under medicaid.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 3—</designator><label>FEDERAL PAYMENTS TO STATES</label></referenceItem> <referenceItem role="section"><designator>Sec. 4721.</designator> <label>Reforming disproportionate share payments under State medicaid programs.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4722.</designator> <label>Treatment of State taxes imposed on certain hospitals.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4723.</designator> <label>Additional funding for State emergency health services furnished to undocumented aliens.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4724.</designator> <label>Elimination of waste, fraud, and abuse.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4725.</designator> <label>Increased FMAPs.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4726.</designator> <label>Increase in payment limitation for territories.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 4—</designator><label>ELIGIBILITY</label></referenceItem> <referenceItem role="section"><designator>Sec. 4731.</designator> <label>State option of continuous eligibility for 12 months; clarification of State option to cover children.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4732.</designator> <label>Payment of part B premiums.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4733.</designator> <label>State option to permit workers with disabilities to buy into medicaid.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4734.</designator> <label>Penalty for fraudulent eligibility.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4735.</designator> <label>Treatment of certain settlement payments.<page identifier="/us/stat/111/275">111 STAT. 275</page></label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 5—</designator><label>BENEFITS</label></referenceItem> <referenceItem role="section"><designator>Sec. 4741.</designator> <label>Elimination of requirement to pay for private insurance.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4742.</designator> <label>Physician qualification requirements.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4743.</designator> <label>Elimination of requirement of prior institutionalization with respect to habilitation services furnished under a waiver for home or community-based services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4744.</designator> <label>Study and report on EPSDT benefit.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 6—</designator><label>ADMINISTRATION AND MISCELLANEOUS</label></referenceItem> <referenceItem role="section"><designator>Sec. 4751.</designator> <label>Elimination of duplicative inspection of care requirements for ICFS/MR and mental hospitals.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4752.</designator> <label>Alternative sanctions for noncompliant ICFS/MR.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4753.</designator> <label>Modification of MMIS requirements.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4754.</designator> <label>Facilitating imposition of State alternative remedies on noncompliant nursing facilities.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4755.</designator> <label>Removal of name from nurse aide registry.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4756.</designator> <label>Medically accepted indication.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4757.</designator> <label>Continuation of State-wide section 1115 medicaid waivers.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4758.</designator> <label>Extension of moratorium.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4759.</designator> <label>Extension of effective date for State law amendment.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle I—</designator><label>Programs of All-Inclusive Care for the Elderly (PACE)</label></referenceItem> <referenceItem role="section"><designator>Sec. 4801.</designator> <label>Coverage of PACE under the medicare program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4802.</designator> <label>Establishment of PACE program as medicaid State option.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4803.</designator> <label>Effective date; transition.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4804.</designator> <label>Study and reports.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle J—</designator><label>State Children’s Health Insurance Program</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 1—</designator><label>STATE CHILDREN’S HEALTH INSURANCE PROGRAM</label></referenceItem> <referenceItem role="section"><designator>Sec. 4901.</designator> <label>Establishment of program.</label></referenceItem> <referenceItem role="title"><designator>“TITLE XXI—</designator><label>STATE CHILDREN’S HEALTH INSURANCE PROGRAM</label></referenceItem> <referenceItem role="section"><designator>“Sec. 2101.</designator> <label>Purpose; State child health plans.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 2102.</designator> <label>General contents of State child health plan; eligibility; outreach.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 2103.</designator> <label>Coverage requirements for children’s health insurance.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 2104.</designator> <label>Allotments.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 2105.</designator> <label>Payments to States.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 2106.</designator> <label>Process for submission, approval, and amendment of State child health plans.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 2107.</designator> <label>Strategic objectives and performance goals; plan administration.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 2108.</designator> <label>Annual reports; evaluations.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 2109.</designator> <label>Miscellaneous provisions.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 2110.</designator> <label>Definitions.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 2—</designator><label>EXPANDED COVERAGE OF CHILDREN UNDER MEDICAID</label></referenceItem> <referenceItem role="section"><designator>Sec. 4911.</designator> <label>Optional use of State child health assistance funds for enhanced medicaid match for expanded medicaid eligibility.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4912.</designator> <label>Medicaid presumptive eligibility for low-income children.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4913.</designator> <label>Continuation of medicaid eligibility for disabled children who lose SSI benefits.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 3—</designator><label>DIABETES GRANT PROGRAMS</label></referenceItem> <referenceItem role="section"><designator>Sec. 4921.</designator> <label>Special diabetes programs for children with Type I diabetes.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4922.</designator> <label>Special diabetes programs for Indians.</label></referenceItem> <referenceItem role="section"><designator>Sec. 4923.</designator> <label>Report on diabetes grant programs.</label></referenceItem> </toc> </content></subsection> </section> <subtitle> <num value="A">Subtitle A—</num><heading>Medicare+Choice Program</heading> <chapter> <num value="1">CHAPTER 1—</num><heading>MEDICARE+CHOICE PROGRAM</heading> <subchapter> <num value="A">Subchapter A—</num><heading>Medicare+Choice Program</heading> <section> <num value="4001">SEC. 4001.</num> <heading>ESTABLISHMENT OF MEDICARE+CHOICE PROGRAM.</heading> <content>Title XVIII is amended by redesignating part C as part D and by inserting after part B the following new part:<page identifier="/us/stat/111/276">111 STAT. 276</page> <quotedContent> <part> <num value="C">“PART C—</num><heading>MEDICARE+CHOICE PROGRAM</heading> <level> <heading class="centered">“<inline class="smallCaps">eligibility, election, and enrollment</inline></heading> <section> <num value="1851">“<inline class="smallCaps">Sec</inline>. 1851.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395w–21">42 USC 1395w–21</ref>.</p></sidenote> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Choice of Medicare Benefits Through Medicare+Choice Plans</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Subject to the provisions of this section, each Medicare+Choice eligible individual (as defined in paragraph (3)) is entitled to elect to receive benefits under this title—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>through the original medicare fee-for-service program under parts A and B, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>through enrollment in a Medicare+Choice plan under this part.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Types of medicare+choice plans that may be available</inline>.—</heading><chapeau>A Medicare+Choice plan may be any of the following types of plans of health insurance:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Coordinated care plans</inline>.—</heading><content>Coordinated care plans which provide health care services, including but not limited to health maintenance organization plans (with or without point of service options), plans offered by provider-sponsored organizations (as defined in section 1855(d)), and preferred provider organization plans.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Combination of msa plan and contributions to medicare+choice msa</inline>.—</heading><content>An MSA plan, as defined in section 1859(b)(3), and a contribution into a Medicare+Choice medical savings account (MSA).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Private fee-for-service plans</inline>.—</heading><content>A Medicare+Choice private fee-for-service plan, as defined in section 1859(b)(2).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Medicare+choice eligible individual</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In this title, subject to subparagraph (B), the term ‘Medicare+Choice eligible individual’ means an individual who is entitled to benefits under part A and enrolled under part B.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Special rule for end-stage renal disease</inline>.—</heading><content>Such term shall not include an individual medically determined to have end-stage renal disease, except that an individual who develops end-stage renal disease while enrolled in a Medicare+Choice plan may continue to be enrolled in that plan.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Special Rules</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Residence requirement</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as the Secretary may otherwise provide, an individual is eligible to elect a Medicare+Choice plan offered by a Medicare+Choice organization only if the plan serves the geographic area in which the individual resides.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Continuation of enrollment permitted</inline>.—</heading><content>Pursuant to rules specified by the Secretary, the Secretary shall provide that a plan may offer to all individuals residing in a geographic area the option to continue enrollment in the plan, notwithstanding that the individual no longer resides in the service area of the plan, so long as the plan provides that individuals exercising this option have, as part of the basic benefits described in section 1852(a)(1)(A), reasonable access within that geographic <page identifier="/us/stat/111/277">111 STAT. 277</page>area to the full range of basic benefits, subject to reasonable cost sharing liability in obtaining such benefits.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Special rule for certain individuals covered under fehbp or eligible for veterans or military health benefits, veterans</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading>FEHBP.—</heading><content>An individual who is enrolled in a health benefit plan under chapter 89 of title 5, United States Code, is not eligible to enroll in an MSA plan until such time as the Director of the Office of Management and Budget certifies to the Secretary that the Office of Personnel Management has adopted policies which will ensure that the enrollment of such individuals in such plans will not result in increased expenditures for the Federal Government for health benefit plans under such chapter.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">VA and dod</inline>.—</heading><content>The Secretary may apply rules similar to the rules described in subparagraph (A) in the case of individuals who are eligible for health care benefits under chapter 55 of title 10, United States Code, or under chapter 17 of title 38 of such Code.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Limitation on eligibility of qualified medicare beneficiaries and other medicaid beneficiaries to enroll in an msa plan</inline>.—</heading><content>An individual who is a qualified medicare beneficiary (as defined in section 1905(p)(1)), a qualified disabled and working individual (described in section 1905(s)), an individual described in section 1902(a)(10)(E)(iii), or otherwise entitled to medicare cost-sharing under a State plan under title XIX is not eligible to enroll in an MSA plan.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Coverage under msa plans on a demonstration basis</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>An individual is not eligible to enroll in an MSA plan under this part—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>on or after January 1, 2003, unless the enrollment is the continuation of such an enrollment in effect as of such date; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>as of any date if the number of such individuals so enrolled as of such date has reached 390,000. Under rules established by the Secretary, an individual is not eligible to enroll (or continue enrollment) in an MSA plan for a year unless the individual provides assurances satisfactory to the Secretary that the individual will reside in the United States for at least 183 days during the year.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Evaluation</inline>.—</heading><content>The Secretary shall regularly evaluate the impact of permitting enrollment in MSA plans under this part on selection (including adverse selection), use of preventive care, access to care, and the financial status of the Trust Funds under this title.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Reports</inline>.—</heading><content>The Secretary shall submit to Congress periodic reports on the numbers of individuals enrolled in such plans and on the evaluation being conducted under subparagraph (B). The Secretary shall submit such a report, by not later than March 1, 2002, on whether the time limitation under subparagraph (A)(i) should be extended or removed and whether to change the numerical limitation under subparagraph (A)(ii).</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Process for Exercising Choice</inline>.—</heading> <page identifier="/us/stat/111/278">111 STAT. 278</page> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall establish a process through which elections described in subsection (a) are made and changed, including the form and manner in which such elections are made and changed. Such elections shall be made or changed only during coverage election periods specified under subsection (e) and shall become effective as provided in subsection (f).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Coordination through medicare+choice organizations</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Enrollment</inline>.—</heading><content>Such process shall permit an individual who wishes to elect a Medicare+Cnoice plan offered by a Medicare+Choice organization to make such election through the filing of an appropriate election form with the organization.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Disenrollment</inline>.—</heading><content>Such process shall permit an individual, who has elected a Medicare+Choice plan offered by a Medicare+Choice organization and who wishes to terminate such election, to terminate such election through the filing of an appropriate election form with the organization.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Default</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Initial election</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subject to clause (ii), an individual who fails to make an election during an initial election period under subsection (e)(1) is deemed to have chosen the original medicare fee-for-service program option.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Seamless continuation of coverage</inline>.—</heading><content>The Secretary may establish procedures under which an individual who is enrolled in a health plan (other than Medicare+Choice plan) offered by a Medicare+Choice organization at the time of the initial election period and who fails to elect to receive coverage other than through the organization is deemed to have elected the Medicare+Cnoice plan offered by the organization (or, if the organization offers more than one such plan, such plan or plans as the Secretary identifies under such procedures).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Continuing periods</inline>.—</heading><chapeau>An individual who has made (or is deemed to have made) an election under this section is considered to have continued to make such election until such time as—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the individual changes the election under this section, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the Medicare+Choice plan with respect to which such election is in effect is discontinued or, subject to subsection (b)(1)(B), no longer serves the area in which the individual resides.</content></clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Providing Information to Promote Informed Choice</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall provide for activities under this subsection to broadly disseminate information to medicare beneficiaries (and prospective medicare beneficiaries) on the coverage options provided under this section in order to promote an active, informed selection among such options.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Provision of notice</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Open season notification</inline>.—</heading><chapeau>At least 15 days before the beginning of each annual, coordinated election <page identifier="/us/stat/111/279">111 STAT. 279</page>period (as defined in subsection (e)(3)(B)), the Secretary shall mail to each Medicare+Choice eligible individual residing in an area the following:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">General information</inline>.—</heading><content>The general information described in paragraph (3).</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">List of plans and comparison of plan options</inline>.—</heading><content>A list identifying the Medicare+Choice plans that are (or will be) available to residents of the area and information described in paragraph (4) concerning such plans. Such information shall be presented in a comparative form.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Additional information</inline>.—</heading><content>Any other information that the Secretary determines will assist the individual in making the election under this section.</content></clause> <continuation class="indent0 fontsize10">The mailing of such information shall be coordinated, to the extent practicable, with the mailing of any annual notice under section 1804.</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Notification to newly eligible medicare+choice eligible individuals</inline>.—</heading><content>To the extent practicable, the Secretary shall, not later than 30 days before the beginning of the initial Medicare+Choice enrollment period for an individual described in subsection (e)(1), mail to the individual the information described in subparagraph (A).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Form</inline>.—</heading><content>The information disseminated under this paragraph shall be written and formatted using language that is easily understandable by medicare beneficiaries.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Periodic updating</inline>.—</heading><content>The information described in subparagraph (A) shall be updated on at least an annual basis to reflect changes in the availability of Medicare+Choice plans and the benefits and Medicare+Choice monthly basic and supplemental beneficiary premiums for such plans.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">General information</inline>.—</heading><chapeau>General information under this paragraph, with respect to coverage under this part during a year, shall include the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Benefits under original medicare fee-for-service program option</inline>.—</heading><chapeau>A general description of the benefits covered under the original medicare fee-for-service program under parts A and B, including—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>covered items and services,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>beneficiary cost sharing, such as deductibles, coinsurance, and copayment amounts, and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>any beneficiary liability for balance billing.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Election procedures</inline>.—</heading><content>Information and instructions on how to exercise election options under this section.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Rights</inline>.—</heading><content>A general description of procedural rights (including grievance and appeals procedures) of beneficiaries under the original medicare fee-for-service program and the Medicare+Choice program and the right to be protected against discrimination based on health status-related factors under section 1852(b).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Information on medigap and medicare select</inline>.—</heading><content>A general description of the benefits, enrollment rights, and other requirements applicable to medicare supplemental policies under section 1882 and provisions <page identifier="/us/stat/111/280">111 STAT. 280</page>relating to medicare select policies described in section 1882(t).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Potential for contract termination</inline>.—</heading><content>The fact that a Medicare+Choice organization may terminate its contract, refuse to renew its contract, or reduce the service area included in its contract, under this part, and the effect of such a termination, nonrenewal, or service area reduction may have on individuals enrolled with the Medicare+Choice plan under this part.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Information comparing plan options</inline>.—</heading><chapeau>Information under this paragraph, with respect to a Medicare+Choice plan for a year, shall include the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Benefits</inline>.—</heading><chapeau>The benefits covered under the plan, including the following:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>Covered items and services beyond those provided under the original medicare fee-for-service program.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>Any beneficiary cost sharing.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>Any maximum limitations on out-of-pocket expenses.</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>In the case of an MSA plan, differences in cost sharing, premiums, and balance billing under such a plan compared to under other Medicare+Choice plans.</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>In the case of a Medicare+Choice private fee-for-service plan, differences in cost sharing, premiums, and balance billing under such a plan compared to under other Medicare+Choice plans.</content></clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <content>The extent to which an enrollee may obtain benefits through out-of-network health care providers.</content></clause> <clause class="indent3 fontsize10"><num value="vii">“(vii)</num> <content>The extent to which an enrollee may select among in-network providers and the types of providers participating in the plan’s network.</content></clause> <clause class="indent3 fontsize10"><num value="viii">“(viii)</num> <content>The organization’s coverage of emergency and urgently needed care.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Premiums</inline>.—</heading><content>The Medicare+Choice monthly basic beneficiary premium and Medicare+Choice monthly supplemental beneficiary premium, if any, for the plan or, in the case of an MSA plan, the Medicare+Choice monthly MSA premium.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Service area</inline>.—</heading><content>The service area of the plan.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Quality and performance</inline>.—</heading><chapeau>To the extent available, plan quality and performance indicators for the benefits under the plan (and how they compare to such indicators under the original medicare fee-for-service program under parts A and B in the area involved), including—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>disenrollment rates for medicare enrollees electing to receive benefits through the plan for the previous 2 years (excluding disenrollment due to death or moving outside the plan’s service area),</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>information on medicare enrollee satisfaction,</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>information on health outcomes, and</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>the recent record regarding compliance of the plan with requirements of this part (as determined by the Secretary).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Supplemental benefits</inline>.—</heading><content>Whether the organization offering the plan includes mandatory supplemental <page identifier="/us/stat/111/281">111 STAT. 281</page>benefits in its base benefit package or offers optional supplemental benefits and the terms and conditions (including premiums) for such coverage.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Maintaining a toll-free number and internet site</inline>.—</heading><content>The Secretary shall maintain a toll-free number for inquiries regarding Medicare+Choice options and the operation of this part in all areas in which Medicare+Choice plans are offered and an Internet site through which individuals may electronically obtain information on such options and Medicare+Choice plans.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Use of non-federal entities</inline>.—</heading><content>The Secretary may enter into contracts with non-Federal entities to carry out activities under this subsection.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Provision of information</inline>.—</heading><content>A Medicare+Choice organization shall provide the Secretary with such information on the organization and each Medicare+Choice plan it offers as may be required for the preparation of the information referred to in paragraph (2)(A).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Coverage Election Periods</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Initial choice upon eligibility to make election if medicare+choice plans available to individual</inline>.—</heading><content>If, at the time an individual first becomes entitled to benefits under part A and enrolled under part B, there is one or more Medicare+Choice plans offered in the area in which the individual resides, the individual shall make the election under this section during a period specified by the Secretary such that if the individual elects a Medicare+Choice plan during the period, coverage under the plan becomes effective as of the first date on which the individual may receive such coverage.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Open enrollment and disenrollment opportunities</inline>.—</heading><chapeau>Subject to paragraph (5)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Continuous open enrollment and disenrollment through 2001</inline>.—</heading><content>At any time during 1998, 1999, 2000, and 2001, a Medicare+Choice eligible individual may change the election under subsection (a)(1).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Continuous open enrollment and disenrollment for first 6 months during 2002</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subject to clause (ii), at any time during the first 6 months of 2002, or, if the individual first becomes a Medicare+Choice eligible individual during 2002, during the first 6 months during 2002 in which the individual is a Medicare+Choice eligible individual, a Medicare+Choice eligible individual may change the election under subsection (a)(1).</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Limitation of one change</inline>.—</heading><content>An individual may exercise the right under clause (i) only once. The limitation under this clause shall not apply to changes in elections effected during an annual, coordinated election period under paragraph (3) or during a special enrollment period under the first sentence of paragraph (4).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Continuous open enrollment and disenrollment for first 3 months in subsequent years</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subject to clause (ii), at any time during the first 3 months of a year after 2002, or, if the individual first becomes a Medicare+Choice <page identifier="/us/stat/111/282">111 STAT. 282</page>eligible individual during a year after 2002, during the first 3 months of such year in which the individual is a Medicare+Choice eligible individual, a Medicare+Choice eligible individual may change the election under subsection (a)(1).</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Limitation of one change during open enrollment period each year</inline>.—</heading><content>An individual may exercise the right under clause (i) only once during the applicable 3-month period described in such clause in each year. The limitation under this clause shall not apply to changes in elections effected during an annual, coordinated election period under paragraph (3) or during a special enrollment period under paragraph (4).</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Annual, coordinated election period</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subject to paragraph (5), each individual who is eligible to make an election under this section may change such election during an annual, coordinated election period.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Annual, coordinated election period</inline>.—</heading><content>For purposes of this section, the term ‘annual, coordinated election period’ means, with respect to a calendar year (beginning with 2000), the month of November before such year.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Medicare+choice health information fairs</inline>.—</heading><content>In the month of November of each year (beginning with 1999), in conjunction with the annual coordinated election period defined in subparagraph (B), the Secretary shall provide for a nationally coordinated educational and publicity campaign to inform Medicare+Choice eligible individuals about Medicare+Choice plans and the election process provided under this section.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Special information campaign in 1998</inline>.—</heading><content>During November 1998 the Secretary shall provide for an educational and publicity campaign to inform Medicare+Choice eligible individuals about the availability of Medicare+Choice plans, and eligible organizations with risk-sharing contracts under section 1876, offered in different areas and the election process provided under this section.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Special election periods</inline>.—</heading><chapeau>Effective as of January 1, 2002, an individual may discontinue an election of a Medicare+Choice plan offered by a Medicare+Choice organization other than during an annual, coordinated election period and make a new election under this section if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the organization’s or plan’s certification under this part has been terminated or the organization has terminated or otherwise discontinued providing the plan in the area in which the individual resides;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the individual is no longer eligible to elect the plan because of a change in the individual’s place of residence or other change in circumstances (specified by the Secretary, but not including termination of the individual’s enrollment on the basis described in clause (i) or (ii) of subsection (g)(3)(B));</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <chapeau>the individual demonstrates (in accordance with guidelines established by the Secretary) that—<page identifier="/us/stat/111/283">111 STAT. 283</page></chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the organization offering the plan substantially violated a material provision of the organization’s contract under this part in relation to the individual (including the failure to provide an enrollee on a timely basis medically necessary care for which benefits are available under the plan or the failure to provide such covered care in accordance with applicable quality standards); or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the organization (or an agent or other entity acting on the organization’s behalf) materially misrepresented the plan’s provisions in marketing the plan to the individual; or</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>the individual meets such other exceptional conditions as the Secretary may provide.</content></subparagraph> <continuation class="indent0 fontsize10">Effective as of January 1, 2002, an individual who, upon first becoming eligible for benefits under part A at age 65, enrolls in a Medicare+Choice plan under this part, the individual may discontinue the election of such plan, and elect coverage under the original fee-for-service plan, at any time during the 12-month period beginning on the effective date of such enrollment.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Special rules for msa plans</inline>.—</heading><chapeau>Notwithstanding the preceding provisions of this subsection, an individual—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>may elect an MSA plan only during—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>an initial open enrollment period described in paragraph (1),</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>an annual, coordinated election period described in paragraph (3)(B), or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>the month of November 1998;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>subject to subparagraph (C), may not discontinue an election of an MSA plan except during the periods described in clause (ii) or (iii) of subparagraph (A) and under the first sentence of paragraph (4); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>who elects an MSA plan during an annual, coordinated election period, and who never previously had elected such a plan, may revoke such election, in a manner determined by the Secretary, by not later than December 15 following the date of the election.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Open enrollment periods</inline>.—</heading><chapeau>Subject to paragraph (5), a Medicare+Choice organization—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>shall accept elections or changes to elections during the initial enrollment periods described in paragraph (1), during the month of November 1998 and each subsequent year (as provided in paragraph (3)), and during special election periods described in the first sentence of paragraph (4); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>may accept other changes to elections at such other times as the organization provides.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Effectiveness of Elections and Changes of Elections</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">During initial coverage election period</inline>.—</heading><content>An election of coverage made during the initial coverage election period under subsection (e)(1)(A) shall take effect upon the date the individual becomes entitled to benefits under part A and enrolled under part B, except as the Secretary may provide (consistent with section 1838) in order to prevent retroactive coverage.<page identifier="/us/stat/111/284">111 STAT. 284</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">During continuous open enrollment periods</inline>.—</heading><content>An election or change of coverage made under subsection (e)(2) shall take effect with the first day of the first calendar month following the date on which the election is made.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Annual, coordinated election period</inline>.—</heading><content>An election or change of coverage made during an annual, coordinated election period (as defined in subsection (e)(3)(B)) in a year shall take effect as of the first day of the following year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Other periods</inline>.—</heading><content>An election or change of coverage made during any other period under subsection (e)(4) shall take effect in such manner as the Secretary provides in a manner consistent (to the extent practicable) with protecting continuity of health benefit coverage.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Guaranteed Issue and Renewal</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in this subsection, a Medicare+Choice organization shall provide that at any time during which elections are accepted under this section with respect to a Medicare+Choice plan offered by the organization, the organization will accept without restrictions individuals who are eligible to make such election.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Priority</inline>.—</heading><chapeau>If the Secretary determines that a Medicare+Choice organization, in relation to a Medicare+Choice plan it offers, has a capacity limit and the number of Medicare+Choice eligible individuals who elect the plan under this section exceeds the capacity limit, the organization may limit the election of individuals of the plan under this section but only if priority in election is provided—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>first to such individuals as have elected the plan at the time of the determination, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>then to other such individuals in such a manner that does not discriminate, on a basis described in section 1852(b), among the individuals (who seek to elect the plan). The preceding sentence shall not apply if it would result in the enrollment of enrollees substantially nonrepresentative, as determined in accordance with regulations of the Secretary, of the medicare population in the service area of the plan.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Limitation on termination of election</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subject to subparagraph (B), a Medicare+Choice organization may not for any reason terminate the election of any individual under this section for a Medicare+Choice plan it offers.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Basis for termination of election</inline>.—</heading><chapeau>A Medicare+Choice organization may terminate an individual’s election under this section with respect to a Medicare+Choice plan it offers if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>any Medicare+Choice monthly basic and supplemental beneficiary premiums required with respect to such plan are not paid on a timely basis (consistent with standards under section 1856 that provide for a grace period for late payment of such premiums),</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the individual has engaged in disruptive behavior (as specified in such standards), or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>the plan is terminated with respect to all individuals under this part in the area in which the individual resides.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Consequence of termination</inline>.—<page identifier="/us/stat/111/285">111 STAT. 285</page></heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Terminations for cause</inline>.—</heading><content>Any individual whose election is terminated under clause (i) or (ii) of subparagraph (B) is deemed to have elected the original medicare fee-for-service program option described in subsection (a)(1)(A).</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Termination based on plan termination or service area reduction</inline>.—</heading><content>Any individual whose election is terminated under subparagraph (B)(iii) shall have a special election period under subsection (e)(4)(A) in which to change coverage to coverage under another Medicare+Choice plan. Such an individual who fails to make an election during such period is deemed to have chosen to change coverage to the original medicare fee-for-service program option described in subsection (a)(1)(A).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Organization obligation with respect to election forms</inline>.—</heading><content>Pursuant to a contract under section 1857, each Medicare+Choice organization receiving an election form under subsection (c)(2) shall transmit to the Secretary (at such time and in such manner as the Secretary may specify) a copy of such form or such other information respecting the election as the Secretary may specify.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Approval of Marketing Material and Application Forms</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Submission</inline>.—</heading><chapeau>No marketing material or application form may be distributed by a Medicare+Choice organization to (or for the use of) Medicare+Choice eligible individuals unless—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>at least 45 days before the date of distribution the organization has submitted the material or form to the Secretary for review, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the Secretary has not disapproved the distribution of such material or form.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Review</inline>.—</heading><content>The standards established under section 1856 shall include guidelines for the review of any material or form submitted and under such guidelines the Secretary shall disapprove (or later require the correction of) such material or form if the material or form is materially inaccurate or misleading or otherwise makes a material misrepresentation.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Deemed approval (1-stop shopping)</inline>.—</heading><content>In the case of material or form that is submitted under paragraph (1)(A) to the Secretary or a regional office of the Department of Health and Human Services and the Secretary or the office has not disapproved the distribution of marketing material or form under paragraph (1)(B) with respect to a Medicare+Choice plan in an area, the Secretary is deemed not to have disapproved such distribution in all other areas covered by the plan and organization except with regard to that portion of such material or form that is specific only to an area involved.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Prohibition of certain marketing practices</inline>.—</heading><chapeau>Each Medicare+Choice organization shall conform to fair marketing standards, in relation to Medicare+Choice plans offered under this part, included in the standards established under section 1856. Such standards—<page identifier="/us/stat/111/286">111 STAT. 286</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>shall not permit a Medicare+Choice organization to provide for cash or other monetary rebates as an inducement for enrollment or otherwise, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>may include a prohibition against a Medicare+Choice organization (or agent of such an organization) completing any portion of any election form used to carry out elections under this section on behalf of any individual.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="i">“(i)</num> <heading><inline class="smallCaps">Effect of Election of Medicare+Choice Plan Option</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Payments to organizations</inline>.—</heading><content>Subject to sections 1852(a)(5), 1853(g), 1853(h), 1886(d)(11), and 1886(h)(3)(D), payments under a contract with a Medicare+Choice organization under section 1853(a) with respect to an individual electing a Medicare+Choice plan offered by the organization shall be instead of the amounts which (in the absence of the contract) would otherwise be payable under parts A and B for items and services furnished to the individual.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Only organization entitled to payment</inline>.—</heading><content>Subject to sections 1853(e), 1853(g), 1853(h), 1857(f)(2), and 1886(d)(11), and 1886(h)(3)(D), only the Medicare+Choice organization shall be entitled to receive payments from the Secretary under this title for services furnished to the individual.</content></paragraph> </subsection> </section> </level> <level> <heading class="centered">“<inline class="smallCaps">benefits and beneficiary protections</inline></heading> <section> <num value="1852">“<inline class="smallCaps">Sec</inline>. 1852.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395w–22">42 USC 1395w–22</ref>.</p></sidenote> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Basic Benefits</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Except as provided in section 1859(b)(3) for MSA plans, each Medicare+Choice plan shall provide to members enrolled under this part, through providers and other persons that meet the applicable requirements of this title and part A of title XI—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>those items and services (other than hospice care) for which benefits are available under parts A and B to individuals residing in the area served by the plan, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>additional benefits required under section 1854(f)(1)(A).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Satisfaction of requirement</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>A Medicare+Choice plan (other than an MSA plan) offered by a Medicare+Choice organization satisfies paragraph (1)(A), with respect to benefits for items and services furnished other than through a provider or other person that has a contract with the organization offering the plan, if the plan provides payment in an amount so that—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the sum of such payment amount and any cost sharing provided for under the plan, is equal to at least</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the total dollar amount of payment for such items and services as would otherwise be authorized under parts A and B (including any balance billing permitted under such parts).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Reference to related provisions</inline>.—</heading><chapeau>For provision relating to—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>limitations on balance billing against Medicare+Choice organizations for non-contract providers, see sections 1852(k) and 1866(a)(1)(O), and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>limiting actuarial value of enrollee liability for covered benefits, see section 1854(e).<page identifier="/us/stat/111/287">111 STAT. 287</page></content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Supplemental benefits</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Benefits included subject to secretary’s approval</inline>.—</heading><content>Each Medicare+Choice organization may provide to individuals enrolled under this part, other than under an MSA plan, (without affording those individuals an option to decline the coverage) supplemental health care benefits that the Secretary may approve. The Secretary shall approve any such supplemental benefits unless the Secretary determines that including such supplemental benefits would substantially discourage enrollment by Medicare+Choice eligible individuals with the organization.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">At enrollees’ option</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subject to clause (ii), a Medicare+Choice organization may provide to individuals enrolled under this part supplemental health care benefits that the individuals may elect, at their option, to have covered.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Special rule for msa plans</inline>.—</heading><content>A Medicare+Choice organization may not provide, under an MSA plan, supplemental health care benefits that cover the deductible described in section 1859(b)(2)(B). In applying the previous sentence, health benefits described in section 1882(u)(2)(B) shall not be treated as covering such deductible.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Application to medicare+choice private fee-for-service plans</inline>.—</heading><content>Nothing in this paragraph shall be construed as preventing a Medicare+Choice private fee-for-service plan from offering supplemental benefits that include payment for some or all of the balance billing amounts permitted consistent with section 1852(k) and coverage of additional services that the plan finds to be medically necessary.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Organization as secondary payer</inline>.—</heading><chapeau>Notwithstanding any other provision of law, a Medicare+Choice organization may (in the case of the provision of items and services to an individual under a Medicare+Choice plan under circumstances in which payment under this title is made secondary pursuant to section 1862(b)(2)) charge or authorize the provider of such services to charge, in accordance with the charges allowed under a law, plan, or policy described in such section—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the insurance carrier, employer, or other entity which under such law, plan, or policy is to pay for the provision of such services, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>such individual to the extent that the individual has been paid under such law, plan, or policy for such services.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">National coverage determinations</inline>.—</heading><chapeau>If there is a national coverage determination made in the period beginning on the date of an announcement under section 1853(b) and ending on the date of the next announcement under such section and the Secretary projects that the determination will result in a significant change in the costs to a Medicare+Choice organization of providing the benefits that are the subject of such national coverage determination and that such change in costs was not incorporated in the determination of the annual Medicare+Choice capitation rate under section 1853 included <page identifier="/us/stat/111/288">111 STAT. 288</page>in the announcement made at the beginning of such period, then, unless otherwise required by law—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>such determination shall not apply to contracts under this part until the first contract year that begins after the end of such period, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>if such coverage determination provides for coverage of additional benefits or coverage under additional circumstances, section 1851(i)(1) shall not apply to payment for such additional benefits or benefits provided under such additional circumstances until the first contract year that begins after the end of such period.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Antidiscrimination</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Beneficiaries</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>A Medicare+Choice organization may not deny, limit, or condition the coverage or provision of benefits under this part, for individuals permitted to be enrolled with the organization under this part, based on any health status-related factor described in section 2702(a)(1) of the Public Health Service Act.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Construction</inline>.—</heading><content>Subparagraph (A) shall not be construed as requiring a Medicare+Choice organization to enroll individuals who are determined to have end-stage renal disease, except as provided under section 1851(a)(3)(B).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Providers</inline>.—</heading><content>A Medicare+Choice organization shall not discriminate with respect to participation, reimbursement, or indemnification as to any provider who is acting within the scope of the provider’s license or certification under applicable State law, solely on the basis of such license or certification. This paragraph shall not be construed to prohibit a plan from including providers only to the extent necessary to meet the needs of the plan’s enrollees or from establishing any measure designed to maintain quality and control costs consistent with the responsibilities of the plan.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Disclosure Requirements</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Detailed description of plan provisions</inline>.—</heading><chapeau>A Medicare+Choice organization shall disclose, in clear, accurate, and standardized form to each enrollee with a Medicare+Choice plan offered by the organization under this part at the time of enrollment and at least annually thereafter, the following information regarding such plan:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Service area</inline>.—</heading><content>The plan’s service area.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Benefits</inline>.—</heading><content>Benefits offered under the plan, including information described in section 1851(d)(3)(A) and exclusions from coverage and, if it is an MSA plan, a comparison of benefits under such a plan with benefits under other Medicare+Choice plans.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Access</inline>.—</heading><content>The number, mix, and distribution of plan providers, out-of-network coverage (if any) provided by the plan, and any point-of-service option (including the supplemental premium for such option).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Our-of-area coverage</inline>.—</heading><content>Out-of-area coverage provided by the plan.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Emergency coverage</inline>.—</heading><chapeau>Coverage of emergency services, including—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the appropriate use of emergency services, including use of the 911 telephone system or its local <page identifier="/us/stat/111/289">111 STAT. 289</page>equivalent in emergency situations and an explanation of what constitutes an emergency situation;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the process and procedures of the plan for obtaining emergency services; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>the locations of (I) emergency departments, and (II) other settings, in which plan physicians and hospitals provide emergency services and post-stabilization care.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <heading><inline class="smallCaps">Supplemental benefits</inline>.—</heading><chapeau>Supplemental benefits available from the organization offering the plan, including—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>whether the supplemental benefits are optional,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the supplemental benefits covered, and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>the Medicare+Choice monthly supplemental beneficiary premium for the supplemental benefits.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <heading><inline class="smallCaps">Prior authorization rules</inline>.—</heading><content>Rules regarding prior authorization or other review requirements that could result in nonpayment.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num> <heading><inline class="smallCaps">Plan grievance and appeals procedures</inline>.—</heading><content>All plan appeal or grievance rights and procedures.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="I">“(I)</num> <heading><inline class="smallCaps">Quality assurance program</inline>.—</heading><content>A description of the organization’s quality assurance program under subsection (e).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Disclosure upon request</inline>.—</heading><chapeau>Upon request of a Medicare+Choice eligible individual, a Medicare+Choice organization must provide the following information to such individual:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>The general coverage information and general comparative plan information made available under clauses (i) and (ii) of section 1851(d)(2)(A).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Information on procedures used by the organization to control utilization of services and expenditures.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>Information on the number of grievances, redeterminations, and appeals and on the disposition in the aggregate of such matters.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>An overall summary description as to the method of compensation of participating physicians.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Access to Services</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>A Medicare+Choice organization offering a Medicare+Choice plan may select the providers from whom the benefits under the plan are provided so long as—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the organization makes such benefits available and accessible to each individual electing the plan within the plan service area with reasonable promptness and in a manner which assures continuity in the provision of benefits;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>when medically necessary the organization makes such benefits available and accessible 24 hours a day and 7 days a week;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <chapeau>the plan provides for reimbursement with respect to services which are covered under subparagraphs (A) and (B) and which are provided to such an individual other than through the organization, if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the services were not emergency services (as defined in paragraph (3)), but (I) the services were medically necessary and immediately required because <page identifier="/us/stat/111/290">111 STAT. 290</page>of an unforeseen illness, injury, or condition, and (II) it was not reasonable given the circumstances to obtain the services through the organization,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the services were renal dialysis services and were provided other than through the organization because the individual was temporarily out of the plan’s service area, or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>the services are maintenance care or post-stabilization care covered under the guidelines established under paragraph (2);</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>the organization provides access to appropriate providers, including credentialed specialists, for medically necessary treatment and services; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>coverage is provided for emergency services (as defined in paragraph (3)) without regard to prior authorization or the emergency care provider’s contractual relationship with the organization.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Guidelines respecting coordination of post-stabilization care</inline>.—</heading><content>A Medicare+Choice plan shall comply with such guidelines as the Secretary may prescribe relating to promoting efficient and timely coordination of appropriate maintenance and post-stabilization care of an enrollee after the enrollee has been determined to be stable under section 1867.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Definition of emergency services</inline>.—</heading><chapeau>In this subsection—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘emergency services’ means, with respect to an individual enrolled with an organization, covered inpatient and outpatient services that—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>are furnished by a provider that is qualified to furnish such services under this title, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>are needed to evaluate or stabilize an emergency medical condition (as defined in subparagraph (B)).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Emergency medical condition based on prudent layperson</inline>.—</heading><chapeau>The term ‘emergency medical condition’ means a medical condition manifesting itself by acute symptoms of sufficient severity (including severe pain) such that a prudent layperson, who possesses an average knowledge of health and medicine, could reasonably expect the absence of immediate medical attention to result in—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>placing the health of the individual (or, with respect to a pregnant woman, the health of the woman or her unborn child) in serious jeopardy,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>serious impairment to bodily functions, or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>serious dysfunction of any bodily organ or part.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Assuring access to services in medicare+choice private fee-for-service plans</inline>.—</heading><chapeau>In addition to any other requirements under this part, in the case of a Medicare+Choice private fee-for-service plan, the organization offering the plan must demonstrate to the Secretary that the organization has sufficient number and range of health care professionals and providers willing <page identifier="/us/stat/111/291">111 STAT. 291</page>to provide services under the terms of the plan. The Secretary shall find that an organization has met such requirement with respect to any category of health care professional or provider if, with respect to that category of provider—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the plan has established payment rates for covered services furnished by that category of provider that are not less than the payment rates provided for under part A, part B, or both, for such services, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the plan has contracts or agreements with a sufficient number and range of providers within such category to provide covered services under the terms of the plan,</content></subparagraph> <continuation class="indent0 fontsize10">or a combination of both. The previous sentence shall not be construed as restricting the persons from whom enrollees under such a plan may obtain covered benefits.</continuation> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Quality Assurance Program</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Each Medicare+Choice organization must have arrangements, consistent with any regulation, for an ongoing quality assurance program for health care services it provides to individuals enrolled with Medicare+Choice plans of the organization.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Elements of program</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The quality assurance program of an organization with respect to a Medicare+Choice plan (other than a Medicare+Choice private fee-for-service plan or a non-network MSA plan) it offers shall—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>stress health outcomes and provide for the collection, analysis, and reporting of data (in accordance with a quality measurement system that the Secretary recognizes) that will permit measurement of outcomes and other indices of the quality of Medicare+Choice plans and organizations;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>monitor and evaluate high volume and high risk services and the care of acute and chronic conditions;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>evaluate the continuity and coordination of care that enrollees receive;</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>be evaluated on an ongoing basis as to its effectiveness;</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>include measures of consumer satisfaction;</content></clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <content>provide the Secretary with such access to information collected as may be appropriate to monitor and ensure the quality of care provided under this part;</content></clause> <clause class="indent3 fontsize10"><num value="vii">“(vii)</num> <content>provide review by physicians and other health care professionals of the process followed in the provision of such health care services;</content></clause> <clause class="indent3 fontsize10"><num value="viii">“(viii)</num> <content>provide for the establishment of written protocols for utilization review, based on current standards of medical practice;</content></clause> <clause class="indent3 fontsize10"><num value="ix">“(ix)</num> <content>have mechanisms to detect both underutilization and overutilization of services;</content></clause> <clause class="indent3 fontsize10"><num value="x">“(x)</num> <content>after identifying areas for improvement, establish or alter practice parameters;<page identifier="/us/stat/111/292">111 STAT. 292</page></content></clause> <clause class="indent3 fontsize10"><num value="xi">“(xi)</num> <content>take action to improve quality and assesses the effectiveness of such action through systematic followup; and</content></clause> <clause class="indent3 fontsize10"><num value="xii">“(xii)</num> <content>make available information on quality and outcomes measures to facilitate beneficiary comparison and choice of health coverage options (in such form and on such quality and outcomes measures as the Secretary determines to be appropriate).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Elements of program for organizations offering medicare+choice private fee-for-service plans and non-network msa plans</inline>.—</heading><chapeau>The quality assurance program of an organization with respect to a Medicare+Choice private fee-for-service plan or a non-network MSA plan it offers shall—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>meet the requirements of clauses (i) through (vi) of subparagraph (A);</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>insofar as it provides for the establishment of written protocols for utilization review, base such protocols on current standards of medical practice; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>have mechanisms to evaluate utilization of services and inform providers and enrollees of the results of such evaluation.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Definition of non-network msa plan</inline>.—</heading><content>In this subsection, the term ‘non-network MSA plan’ means an MSA plan offered by a Medicare+Choice organization that does not provide benefits required to be provided by this part, in whole or in part, through a defined set of providers under contract, or under another arrangement, with the organization.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">External review</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Each Medicare+Choice organization shall, for each Medicare+Choice plan it operates, have an agreement with an independent quality review and improvement organization approved by the Secretary to perform functions of the type described in sections 1154(a)(4)(B) and 1154(a)(14) with respect to services furnished by Medicare+Choice plans for which payment is made under this title. The previous sentence shall not apply to a Medicare+Choice private fee-for-service plan or a non-network MSA plan that does not employ utilization review.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Nonduplication of accreditation</inline>.—</heading><content>Except in the case of the review of quality complaints, and consistent with subparagraph (C), the Secretary shall ensure that the external review activities conducted under subparagraph (A) are not duplicative of review activities conducted as part of the accreditation process.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Waiver authority</inline>.—</heading><content>The Secretary may waive the requirement described in subparagraph (A) in the case of an organization if the Secretary determines that the organization has consistently maintained an excellent record of quality assurance and compliance with other requirements under this part.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Treatment of accreditation</inline>.—</heading><content>The Secretary shall provide that a Medicare+Choice organization is deemed to meet requirements of paragraphs (1) and (2) of this subsection and subsection (h) (relating to confidentiality and accuracy of <page identifier="/us/stat/111/293">111 STAT. 293</page>enrollee records) if the organization is accredited (and periodically reaccredited) by a private organization under a process that the Secretary has determined assures that the organization, as a condition of accreditation, applies and enforces standards with respect to the requirements involved that are no less stringent than the standards established under section 1856 to carry out the respective requirements.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Grievance Mechanism</inline>.—</heading><content>Each Medicare+Choice organization must provide meaningful procedures for hearing and resolving grievances between the organization (including any entity or individual through which the organization provides health care services) and enrollees with Medicare+Choice plans of the organization under this part.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Coverage Determinations, Reconsiderations, and Appeals</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Determinations by organization</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>A Medicare+Choice organization shall have a procedure for making determinations regarding whether an individual enrolled with the plan of the organization under this part is entitled to receive a health service under this section and the amount (if any) that the individual is required to pay with respect to such service. Subject to paragraph (3), such procedures shall provide for such determination to be made on a timely basis.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Explanation of determination</inline>.—</heading><content>Such a determination that denies coverage, in whole in part, shall be in writing and shall include a statement in understandable language of the reasons for the denial and a description of the reconsideration and appeals processes.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Reconsiderations</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The organization shall provide for reconsideration of a determination described in paragraph (1)(B) upon request by the enrollee involved. The reconsideration shall be within a time period specified by the Secretary, but shall be made, subject to paragraph (3), not later than 60 days after the date of the receipt of the request for reconsideration.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Physician decision on certain reconsiderations</inline>.—</heading><content>A reconsideration relating to a determination to deny coverage based on a lack of medical necessity shall be made only by a physician with appropriate expertise in the field of medicine which necessitates treatment who is other than a physician involved in the initial determination.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Expedited determinations and reconsiderations</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Receipt of requests</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Enrollee requests</inline>.—</heading><content>An enrollee in a Medicare+Choice plan may request, either in writing or orally, an expedited determination under paragraph (1) or an expedited reconsideration under paragraph (2) by the Medicare+Choice organization.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Physician requests</inline>.—</heading><content>A physician, regardless whether the physician is affiliated with the organization or not, may request, either in writing or orally, such an expedited determination or reconsideration.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Organization procedures</inline>.—<page identifier="/us/stat/111/294">111 STAT. 294</page></heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Medicare+Choice organization shall maintain procedures for expediting organization determinations and reconsiderations when, upon request of an enrollee, the organization determines that the application of the normal time frame for making a determination (or a reconsideration involving a determination) could seriously jeopardize the life or health of the enrollee or the enrollee’s ability to regain maximum function.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Expedition required for physician requests</inline>.—</heading><content>In the case of a request for an expedited determination or reconsideration made under subparagraph (A)(ii), the organization shall expedite the determination or reconsideration if the request indicates that the application of the normal time frame for making a determination (or a reconsideration involving a determination) could seriously jeopardize the life or health of the enrollee or the enrollee’s ability to regain maximum function.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Timely response</inline>.—</heading><content>In cases described in clauses (i) and (ii), the organization shall notify the enrollee (and the physician involved, as appropriate) of the determination or reconsideration under time limitations established by the Secretary, but not later than 72 hours of the time of receipt of the request for the determination or reconsideration (or receipt of the information necessary to make the determination or reconsideration), or such longer period as the Secretary may permit in specified cases.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Contracts.</p></sidenote> <heading><inline class="smallCaps">Independent review of certain coverage denials</inline>.—</heading><content>The Secretary shall contract with an independent, outside entity to review and resolve in a timely manner reconsiderations that affirm denial of coverage, in whole or in part.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Appeals</inline>.—</heading><content>An enrollee with a Medicare+Choice plan of a Medicare+Choice organization under this part who is dissatisfied by reason of the enrollee’s failure to receive any health service to which the enrollee believes the enrollee is entitled and at no greater charge than the enrollee believes the enrollee is required to pay is entitled, if the amount in controversy is $100 or more, to a hearing before the Secretary to the same extent as is provided in section 205(b), and in any such hearing the Secretary shall make the organization a party. If the amount in controversy is $1,000 or more, the individual or organization shall, upon notifying the other party, be entitled to judicial review of the Secretary’s final decision as provided in section 205(g), and both the individual and the organization shall be entitled to be parties to that judicial review. In applying subsections (b) and (g) of section 205 as provided in this paragraph, and in applying section 205(1) thereto, any reference therein to the Commissioner of Social Security or the Social Security Administration shall be considered a reference to the Secretary or the Department of Health and Human Services, respectively.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Confidentiality and accuracy of enrollee records</inline>.—</heading><chapeau>Insofar as a Medicare+Choice organization maintains medical <page identifier="/us/stat/111/295">111 STAT. 295</page>records or other health information regarding enrollees under this part, the Medicare+Choice organization shall establish procedures—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>to safeguard the privacy of any individually identifiable enrollee information;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>to maintain such records and information in a manner that is accurate and timely, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>to assure timely access of enrollees to such records and information.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="i">“(i)</num> <heading><inline class="smallCaps">Information on Advance Directives</inline>.—</heading><content>Each Medicare+Choice organization shall meet the requirement of section 1866(f) (relating to maintaining written policies and procedures respecting advance directives).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="j">“(j)</num> <heading><inline class="smallCaps">Rules Regarding Provider Participation</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Procedures</inline>.—</heading><chapeau>Insofar as a Medicare+Choice organization offers benefits under a Medicare+Choice plan through agreements with physicians, the organization shall establish reasonable procedures relating to the participation (under an agreement between a physician and the organization) of physicians under such a plan. Such procedures shall include—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>providing notice of the rules regarding participation,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>providing written notice of participation decisions that are adverse to physicians, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>providing a process within the organization for appealing such adverse decisions, including the presentation of information and views of the physician regarding such decision.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Consultation in medical policies</inline>.—</heading><content>A Medicare+Choice organization shall consult with physicians who have entered into participation agreements with the organization regarding the organization’s medical policy, quality, and medical management procedures.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Prohibiting interference with provider advice to enrollees</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subject to subparagraphs (B) and (C), a Medicare+Choice organization (in relation to an individual enrolled under a Medicare+Choice plan offered by the organization under this part) shall not prohibit or otherwise restrict a covered health care professional (as defined in subparagraph (D)) from advising such an individual who is a patient of the professional about the health status of the individual or medical care or treatment for the individual’s condition or disease, regardless of whether benefits for such care or treatment are provided under the plan, if the professional is acting within the lawful scope of practice.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Conscience protection</inline>.—</heading><chapeau>Subparagraph (A) shall not be construed as requiring a Medicare+Choice plan to provide, reimburse for, or provide coverage of a counseling or referral service if the Medicare+Choice organization offering the plan—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>objects to the provision of such service on moral or religious grounds; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>in the manner and through the written instrumentalities such Medicare+Choice organization deems appropriate, makes available information on its policies regarding such service to prospective enrollees <page identifier="/us/stat/111/296">111 STAT. 296</page>before or during enrollment and to enrollees within 90 days after the date that the organization or plan adopts a change in policy regarding such a counseling or referral service.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Construction</inline>.—</heading><content>Nothing in subparagraph (B) shall be construed to affect disclosure requirements under State law or under the Employee Retirement Income Security Act of 1974.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Health care professional defined</inline>.—</heading><content>For purposes of this paragraph, the term ‘health care professional’ means a physician (as defined in section 186 l(r)) or other health care professional if coverage for the professional’s services is provided under the Medicare+Choice plan for the services of the professional. Such term includes a podiatrist, optometrist, chiropractor, psychologist, dentist, physician assistant, physical or occupational therapist and therapy assistant, speech-language pathologist, audiologist, registered or licensed practical nurse (including nurse practitioner, clinical nurse specialist, certified registered nurse anesthetist, and certified nurse-midwife), licensed certified social worker, registered respiratory therapist, and certified respiratory therapy technician.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Limitations on physician incentive plans</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>No Medicare+Choice organization may operate any physician incentive plan (as defined in subparagraph (B)) unless the following requirements are met:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>No specific payment is made directly or indirectly under the plan to a physician or physician group as an inducement to reduce or limit medically necessary services provided with respect to a specific individual enrolled with the organization.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>If the plan places a physician or physician group at substantial financial risk (as determined by the Secretary) for services not provided by the physician or physician group, the organization—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>provides stop-loss protection for the physician or group that is adequate and appropriate, based on standards developed by the Secretary that take into account the number of physicians placed at such substantial financial risk in the group or under the plan and the number of individuals enrolled with the organization who receive services from the physician or group, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>conducts periodic surveys of both individuals enrolled and individuals previously enrolled with the organization to determine the degree of access of such individuals to services provided by the organization and satisfaction with the quality of such services.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>The organization provides the Secretary with descriptive information regarding the plan, sufficient to permit the Secretary to determine whether the plan is in compliance with the requirements of this subparagraph.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Physician incentive plan defined</inline>.—</heading><content>In this paragraph, the term ‘physician incentive plan’ means any <page identifier="/us/stat/111/297">111 STAT. 297</page>compensation arrangement between a Medicare+Choice organization and a physician or physician group that may directly or indirectly have the effect of reducing or limiting services provided with respect to individuals enrolled with the organization under this part.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Limitation on provider indemnification</inline>.—</heading><content>A Medicare+Choice organization may not provide (directly or indirectly) for a health care professional, provider of services, or other entity providing health care services (or group of such professionals, providers, or entities) to indemnify the organization against any liability resulting from a civil action brought for any damage caused to an enrollee with a Medicare+Choice plan of the organization under this part by the organization’s denial of medically necessary care.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Special rules for medicare+choice private fee-for-service plans</inline>.—</heading><chapeau>For purposes of applying this part (including subsection (k)(1)) and section 1866(a)(1)(O), a hospital (or other provider of services), a physician or other health care professional, or other entity furnishing health care services is treated as having an agreement or contract in effect with a Medicare+Choice organization (with respect to an individual enrolled in a Medicare+Choice private fee-for-service plan it offers), if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the provider, professional, or other entity furnishes services that are covered under the plan to such an enrollee; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>before providing such services, the provider, professional, or other entity—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>has been informed of the individual’s enrollment under the plan, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>either—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>has been informed of the terms and conditions of payment for such services under the plan, or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>is given a reasonable opportunity to obtain information concerning such terms and conditions,</content></subclause> <continuation class="indent0 fontsize10">in a manner reasonably designed to effect informed agreement by a provider.</continuation> </clause> </subparagraph> <continuation class="indent0 fontsize10">The previous sentence shall only apply in the absence of an explicit agreement between such a provider, professional, or other entity and the Medicare+Choice organization.</continuation> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="k">“(k)</num> <heading><inline class="smallCaps">Treatment of Services Furnished by Certain Providers</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in paragraph (2), a physician or other entity (other than a provider of services) that does not have a contract establishing payment amounts for services furnished to an individual enrolled under this part with a Medicare+Choice organization described in section 1851(a)(2)(A) shall accept as payment in full for covered services under this title that are furnished to such an individual the amounts that the physician or other entity could collect if the individual were not so enrolled. Any penalty or other provision of law that applies to such a payment with respect to an individual entitled to benefits under this title (but not enrolled with a Medicare+Choice organization under this part) also applies with respect to an individual so enrolled.<page identifier="/us/stat/111/298">111 STAT. 298</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Application to medicare+choice private fee-for-service plans</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Balance billing limits under medicare+choice private fee-for-service plans in case of contract providers</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In the case of an individual enrolled in a Medicare+Choice private fee-for-service plan under this part, a physician, provider of services, or other entity that has a contract (including through the operation of subsection (j)(6)) establishing a payment rate for services furnished to the enrollee shall accept as payment in full for covered services under this title that are furnished to such an individual an amount not to exceed (including any deductibles, coinsurance, copayments, or balance billing otherwise permitted under the plan) an amount equal to 115 percent of such payment rate.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Procedures to enforce limits</inline>.—</heading><content>The Medicare+Choice organization that offers such a plan shall establish procedures, similar to the procedures described in section 1848(g)(1)(A), in order to carry out the previous sentence.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Assuring enforcement</inline>.—</heading><content>If the Medicare+Choice organization fails to establish and enforce procedures required under clause (ii), the organization is subject to intermediate sanctions under section 1857(g).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Enrollee liability for noncontract providers</inline>.—</heading><chapeau>For provision—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>establishing minimum payment rate in the case of noncontract providers under a Medicare+Choice private fee-for-service plan, see section 1852(a)(2); or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>limiting enrollee liability in the case of covered services furnished by such providers, see paragraph (1) and section 1866(a)(1)(O).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Information on beneficiary liability</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Each Medicare+Choice organization that offers a Medicare+Choice private fee-for-service plan shall provide that enrollees under the plan who are furnished services for which payment is sought under the plan are provided an appropriate explanation of benefits (consistent with that provided under parts A and B and, if applicable, under medicare supplemental policies) that includes a clear statement of the amount of the enrollee’s liability (including any liability for balance billing consistent with this subsection) with respect to payments for such services.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Advance notice before receipt of inpatient hospital services and certain other services</inline>.—</heading><chapeau>In addition, such organization shall, in its terms and conditions of payments to hospitals for inpatient hospital services and for other services identified by the Secretary for which the amount of the balancing billing under subparagraph (A) could be substantial, require the hospital to provide to the enrollee, before furnishing such services and if the <page identifier="/us/stat/111/299">111 STAT. 299</page>hospital imposes balance billing under subparagraph (A)—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>notice of the fact that balance billing is permitted under such subparagraph for such services, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>a good faith estimate of the likely amount of such balance billing (if any), with respect to such services, based upon the presenting condition of the enrollee.</content></subclause> </clause> </subparagraph> </paragraph> </subsection> </section> </level> <level> <heading class="centered">“<inline class="smallCaps">payments to medicare+choice organizations</inline></heading> <section> <num value="1853">“<inline class="smallCaps">Sec</inline>. 1853.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Payments to Organizations</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395w–23">42 USC 1395w–23</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Monthly payments</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Under a contract under section 1857 and subject to subsections (e) and (f) and section 1859(e)(4), the Secretary shall make monthly payments under this section in advance to each Medicare+Choice organization, with respect to coverage of an individual under this part in a Medicare+Choice payment area for a month, in an amount equal to ½ of the annual Medicare+Choice capitation rate (as calculated under subsection (c)) with respect to that individual for that area, adjusted for such risk factors as age, disability status, gender, institutional status, and such other factors as the Secretary determines to be appropriate, so as to ensure actuarial equivalence. The Secretary may add to, modify, or substitute tor such factors, if such changes will improve the determination of actuarial equivalence.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Special rule for end-stage renal disease</inline>.—</heading><content>The Secretary shall establish separate rates of payment to a Medicare+Choice organization with respect to classes of individuals determined to have end-stage renal disease and enrolled in a Medicare+Choice plan of the organization. Such rates of payment shall be actuarially equivalent to rates paid to other enrollees in the Medicare+Choice payment area (or such other area as specified by the Secretary). In accordance with regulations, the Secretary shall provide for the application of the seventh sentence of section 1881(b)(7) to payments under this section covering the provision of renal dialysis treatment in the same manner as such sentence applies to composite rate payments described in such sentence.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Adjustment to reflect number of enrollees</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amount of payment under this subsection may be retroactively adjusted to take into account any difference between the actual number of individuals enrolled with an organization under this part and the number of such individuals estimated to be so enrolled in determining the amount of the advance payment.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Special rule for certain enrollees</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subject to clause (ii), the Secretary may make retroactive adjustments under subparagraph (A) to take into account individuals enrolled during the period beginning on the date on which the individual enrolls with a Medicare+Choice organization under a plan operated, sponsored, or <page identifier="/us/stat/111/300">111 STAT. 300</page>contributed to by the individual’s employer or former employer (or the employer or former employer of the individual’s spouse) and ending on the date on which the individual is enrolled in the organization under this part, except that for purposes of making such retroactive adjustments under this subparagraph, such period may not exceed 90 days.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Exception</inline>.—</heading><content>No adjustment may be made under clause (i) with respect to any individual who does not certify that the organization provided the individual with the disclosure statement described in section 1852(c) at the time the individual enrolled with the organization.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Establishment of risk adjustment factors</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Report</inline>.—</heading><content>The Secretary shall develop, and submit to Congress by not later than March 1, 1999, a report on the method of risk adjustment of payment rates under this section, to be implemented under subparagraph (C), that accounts for variations in per capita costs based on health status. Such report shall include an evaluation of such method by an outside, independent actuary of the actuarial soundness of the proposal.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Data collection</inline>.—</heading><content>In order to carry out this paragraph, the Secretary shall require Medicare+Choice organizations (and eligible organizations with risk-sharing contracts under section 1876) to submit data regarding inpatient hospital services for periods beginning on or after July 1, 1997, and data regarding other services and other information as the Secretary deems necessary for periods beginning on or after July 1, 1998. The Secretary may not require an organization to submit such data before January 1, 1998.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Initial implementation</inline>.—</heading><content>The Secretary shall first provide for implementation of a risk adjustment methodology that accounts for variations in per capita costs based on health status and other demographic factors for payments by no later than January 1, 2000.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Uniform application to all types of plans</inline>.—</heading><content>Subject to section 1859(e)(4), the methodology shall be applied uniformly without regard to the type of plan.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Annual Announcement of Payment Rates</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Annual announcement</inline>.—</heading><chapeau>The Secretary shall annually determine, and shall announce (in a manner intended to provide notice to interested parties) not later than March 1 before the calendar year concerned—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the annual Medicare+Choice capitation rate for each Medicare+Choice payment area for the year, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the risk and other factors to be used in adjusting such rates under subsection (a)(1)(A) for payments for months in that year.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Advance notice of methodological changes</inline>.—</heading><content>At least 45 days before making the announcement under paragraph (1) for a year, the Secretary shall provide for notice to Medicare+Choice organizations of proposed changes to be made in the methodology from the methodology and assumptions used in the previous announcement and shall provide <page identifier="/us/stat/111/301">111 STAT. 301</page>such organizations an opportunity to comment on such proposed changes.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Explanation of assumptions</inline>.—</heading><content>In each announcement made under paragraph (1), the Secretary shall include an explanation of the assumptions and changes in methodology used in the announcement in sufficient detail so that Medicare+Choice organizations can compute monthly adjusted Medicare+Choice capitation rates for individuals in each Medicare+Choice payment area which is in whole or in part within the service area of such an organization.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Calculation of Annual Medicare+Choice Capitation Rates</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of this part, subject to paragraphs (6)(C) and (7), each annual Medicare+Choice capitation rate, for a Medicare+Choice payment area for a contract year consisting of a calendar year, is equal to the largest of the amounts specified in the following subparagraph (A), (B), or (C):</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Blended capitation rate</inline>.—</heading><chapeau>The sum of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the area-specific percentage (as specified under paragraph (2) for the year) of the annual area-specific Medicare+Choice capitation rate for the Medicare+Choice payment area, as determined under paragraph (3) for the year, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the national percentage (as specified under paragraph (2) for the year) of the input-price-adjusted annual national Medicare+Choice capitation rate, as determined under paragraph (4) for the year,</content></clause> <continuation class="indent0 fontsize10">multiplied by the budget neutrality adjustment factor determined under paragraph (5).</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Minimum amount</inline>.—</heading><chapeau>12 multiplied by the following amount:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>For 1998, $367 (but not to exceed, in the case of an area outside the 50 States and the District of Columbia, 150 percent of the annual per capita rate of payment for 1997 determined under section 1876(a)(1)(C) for the area).</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>For a succeeding year, the minimum amount specified in this clause (or clause (i)) for the preceding year increased by the national per capita Medicare+Choice growth percentage, described in paragraph (6)(A) for that succeeding year.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Minimum percentage increase</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>For 1998, 102 percent of the annual per capita rate of payment for 1997 determined under section 1876(a)(1)(C) for the Medicare+Choice payment area.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>For a subsequent year, 102 percent of the annual Medicare+Choice capitation rate under this paragraph for the area for the previous year.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Area-specific and national percentages</inline>.—</heading><chapeau>For purposes of paragraph (1)(A)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>for 1998, the ‘area-specific percentage’ is 90 percent and the ‘national percentage’ is 10 percent,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>for 1999, the ‘area-specific percentage’ is 82 percent and the ‘national percentage’ is 18 percent,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>for 2000, the ‘area-specific percentage’ is 74 percent and the ‘national percentage’ is 26 percent,<page identifier="/us/stat/111/302">111 STAT. 302</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>for 2001, the ‘area-specific percentage’ is 66 percent and the ‘national percentage’ is 34 percent,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>for 2002, the ‘area-specific percentage’ is 58 percent and the ‘national percentage’ is 42 percent, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>for a year after 2002, the ‘area-specific percentage’ is 50 percent and the ‘national percentage’ is 50 percent.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Annual area-specific medicare+choice capitation rate</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of paragraph (1)(A), subject to subparagraph (B), the annual area-specific Medicare+Choice capitation rate for a Medicare+Choice payment area—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>for 1998 is, subject to subparagraph (D), the annual per capita rate of payment for 1997 determined under section 1876(a)(1)(C) for the area, increased by the national per capita Medicare+Choice growth percentage for 1998 (described in paragraph (6)(A)); or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>for a subsequent year is the annual area-specific Medicare+Choice capitation rate for the previous year determined under this paragraph for the area, increased by the national per capita Medicare+Choice growth percentage for such subsequent year.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Removal of medical education from calculation of adjusted average per capita cost</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In determining the area-specific Medicare+Choice capitation rate under subparagraph (A) for a year (beginning with 1998), the annual per capita rate of payment for 1997 determined under section 1876(a)(1)(C) shall be adjusted to exclude from the rate the applicable percent (specified in clause (ii)) of the payment adjustments described in subparagraph (C).</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Applicable percent</inline>.—</heading><chapeau>For purposes of clause (i), the applicable percent for—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>1998 is 20 percent,</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>1999 is 40 percent,</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>2000 is 60 percent,</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>2001 is 80 percent, and</content></subclause> <subclause class="indent4 fontsize10"><num value="V">“(V)</num> <content>a succeeding year is 100 percent.</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Payment adjustment</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Subject to clause (ii), the payment adjustments described in this subparagraph are payment adjustments which the Secretary estimates were payable during 1997—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>for the indirect costs of medical education under section 1886(d)(5)(B), and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>for direct graduate medical education costs under section 1886(h).</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Treatment of payments covered under state hospital reimbursement system</inline>.—</heading><content>To the extent that the Secretary estimates that an annual per capita rate of payment for 1997 described in clause (i) reflects payments to hospitals reimbursed under section 1814(b)(3), the Secretary shall estimate a payment adjustment that is comparable to the payment <page identifier="/us/stat/111/303">111 STAT. 303</page>adjustment that would have been made under clause (i) if the hospitals had not been reimbursed under such section.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Treatment of areas with highly variable payment rates</inline>.—</heading><content>In the case of a Medicare+Choice payment area for which the annual per capita rate of payment determined under section 1876(a)(1)(C) for 1997 varies by more than 20 percent from such rate for 1996, for purposes of this subsection the Secretary may substitute for such rate for 1997 a rate that is more representative of the costs of the enrollees in the area.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Input-price-adjusted annual national medicare+choice capitation rate</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of paragraph (1)(A), the input-price-adjusted annual national Medicare+Choice capitation rate for a Medicare+Choice payment area for a year is equal to the sum, for all the types of medicare services (as classified by the Secretary), of the product (for each such type of service) of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the national standardized annual Medicare+Choice capitation rate (determined under subparagraph (B)) for the year,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the proportion of such rate for the year which is attributable to such type of services, and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>an index that reflects (for that year and that type of services) the relative input price of such services in the area compared to the national average input price of such services.</content></clause> <continuation class="indent0 fontsize10">In applying clause (iii), the Secretary may, subject to subparagraph (C), apply those indices under this title that are used in applying (or updating) national payment rates for specific areas and localities.</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">National standardized annual medicare+choice capitation rate</inline>.—</heading><chapeau>In subparagraph (A)(i), the ‘national standardized annual Medicare+Choice capitation rate’ for a year is equal to—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <chapeau>the sum (for all Medicare+Choice payment areas) of the product of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the annual area-specific Medicare+Choice capitation rate for that year for the area under paragraph (3), and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the average number of medicare beneficiaries residing in that area in the year, multiplied by the average of the risk factor weights used to adjust payments under subsection (a)(1)(A) for such beneficiaries in such area; divided by</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the sum of the products described in clause (i)(II) for all areas for that year.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Special rules for 1998</inline>.—</heading><chapeau>In applying this paragraph for 1998—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>medicare services shall be divided into 2 types of services: part A services and part B services;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>the proportions described in subparagraph (A)(ii)—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>for part A services shall be the ratio (expressed as a percentage) of the national average annual per capita rate of payment for part A for <page identifier="/us/stat/111/304">111 STAT. 304</page>1997 to the total national average annual per capita rate of payment for parts A and B for 1997, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>for part B services shall be 100 percent minus the ratio described in subclause (I);</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>for part A services, 70 percent of payments attributable to such services shall be adjusted by the index used under section 1886(d)(3)(E) to adjust payment rates for relative hospital wage levels for hospitals located in the payment area involved;</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <chapeau>for part B services—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>66 percent of payments attributable to such services shall be adjusted by the index of the geographic area factors under section 1848(e) used to adjust payment rates for physicians’ services furnished in the payment area, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>of the remaining 34 percent of the amount of such payments, 40 percent shall be adjusted by the index described in clause (iii); and</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>the index values shall be computed based only on the beneficiary population who are 65 years of age or older and who are not determined to have end stage renal disease.</content></clause> <continuation class="indent0 fontsize10">The Secretary may continue to apply the rules described in this subparagraph (or similar rules) for 1999.</continuation> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Payment adjustment budget neutrality factor</inline>.—</heading><content>For purposes of paragraph (1)(A), for each year, the Secretary shall determine a budget neutrality adjustment factor so that the aggregate of the payments under this part shall equal the aggregate payments that would have been made under this part if payment were based entirely on area-specific capitation rates.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">National per capita medicare+choice growth percentage defined</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In this part, the ‘national per capita Medicare+Choice growth percentage’ for a year is the percentage determined by the Secretary, by March 1st before the beginning of the year involved, to reflect the Secretary’s estimate of the projected per capita rate of growth in expenditures under this title for an individual entitled to benefits under part A and enrolled under part B, reduced by the number of percentage points specified in subparagraph (B) for the year. Separate determinations may be made for aged enrollees, disabled enrollees, and enrollees with end-stage renal disease.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Adjustment</inline>.—</heading><chapeau>The number of percentage points specified in this subparagraph is—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>for 1998, 0.8 percentage points,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>for 1999, 0.5 percentage points,</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>for 2000, 0.5 percentage points,</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>for 2001, 0.5 percentage points,</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>for 2002, 0.5 percentage points, and</content></clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <content>for a year after 2002, 0 percentage points.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Adjustment for over or under projection of national per capita medicare+choice growth percentage</inline>.—</heading><content>Beginning with rates calculated for 1999, before computing rates for a year as described in paragraph (1), <page identifier="/us/stat/111/305">111 STAT. 305</page>the Secretary shall adjust all area-specific and national Medicare+Choice capitation rates (and beginning in 2000, the minimum amount) for the previous year for the differences between the projections of the national per capita Medicare+Choice growth percentage for that year and previous years and the current estimate of such percentage for such years.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Adjustment for national coverage determinations</inline>.—</heading><content>If the Secretary makes a determination with respect to coverage under this title that the Secretary projects will result in a significant increase in the costs to Medicare+Choice of providing benefits under contracts under this part (for periods after any period described in section 1852(a)(5)), the Secretary shall adjust appropriately the payments to such organizations under this part.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Medicare+Choice Payment Area Defined</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In this part, except as provided in paragraph (3), the term ‘Medicare+Choice payment area’ means a county, or equivalent area specified by the Secretary.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Rule for esrd beneficiaries</inline>.—</heading><content>In the case of individuals who are determined to have end stage renal disease, the Medicare+Choice payment area shall be a State or such other payment area as the Secretary specifies.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Geographic adjustment</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Upon written request of the chief executive officer of a State for a contract year (beginning after 1998) made by not later than February 1 of the previous year, the Secretary shall make a geographic adjustment to a Medicare+Choice payment area in the State otherwise determined under paragraph (1)—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>to a single statewide Medicare+Choice payment area,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>to the metropolitan based system described in subparagraph (C), or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>to consolidating into a single Medicare+Choice payment area noncontiguous counties (or equivalent areas described in paragraph (1)) within a State.</content></clause> <continuation class="indent0 fontsize10">Such adjustment shall be effective for payments for months beginning with January of the year following the year in which the request is received.</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Budget neutrality adjustment</inline>.—</heading><content>In the case of a State requesting an adjustment under this paragraph, the Secretary shall initially (and annually thereafter) adjust the payment rates otherwise established under this section for Medicare+Choice payment areas in the State in a manner so that the aggregate of the payments under this section in the State shall not exceed the aggregate payments that would have been made under this section for Medicare+Choice payment areas in the State in the absence of the adjustment under this paragraph.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Metropolitan based system</inline>.—</heading><chapeau>The metropolitan based system described in this subparagraph is one in which—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>all the portions of each metropolitan statistical area in the State or in the case of a consolidated metropolitan statistical area, all of the portions of each primary metropolitan statistical area within the <page identifier="/us/stat/111/306">111 STAT. 306</page>consolidated area within the State, are treated as a single Medicare+Choice payment area, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>all areas in the State that do not fall within a metropolitan statistical area are treated as a single Medicare+Choice payment area.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Areas</inline>.—</heading><content>In subparagraph (C), the terms ‘metropolitan statistical area’, ‘consolidated metropolitan statistical area’, and ‘primary metropolitan statistical area’ mean any area designated as such by the Secretary of Commerce.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Special Rules for Individuals Electing MSA Plans</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If the amount of the Medicare+Choice monthly MSA premium (as defined in section 1854(b)(2)(C)) for an MSA plan for a year is less than V12 of the annual Medicare+Choice capitation rate applied under this section for the area and year involved, the Secretary shall deposit an amount equal to 100 percent of such difference in a Medicare+Choice MSA established (and, if applicable, designated) by the individual under paragraph (2).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Establishment and designation of medicare+choice medical savings account as requirement for payment of contribution</inline>.—</heading><chapeau>In the case of an individual who has elected coverage under an MSA plan, no payment shall be made under paragraph (1) on behalf of an individual for a month unless the individual—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>has established before the beginning of the month (or by such other deadline as the Secretary may specify) a Medicare+Choice MSA (as defined in section 138(b)(2) of the Internal Revenue Code of 1986), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>if the individual has established more than one such Medicare+Choice MSA, has designated one of such accounts as the individual’s Medicare+Choice MSA for purposes of this part.</content></subparagraph> <continuation class="indent0 fontsize10">Under rules under this section, such an individual may change the designation of such account under subparagraph (B) for purposes of this part.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Lump-sum deposit of medical savings account contribution</inline>.—</heading><content>In the case of an individual electing an MSA plan effective beginning with a month in a year, the amount of the contribution to the Medicare+Choice MSA on behalf of the individual for that month and all successive months in the year shall be deposited during that first month. In the case of a termination of such an election as of a month before the end of a year, the Secretary shall provide for a procedure for the recovery of deposits attributable to the remaining months in the year.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Payments from trust fund</inline>.—</heading><content>The payment to a Medicare+Choice organization under this section for individuals enrolled under this part with the organization and payments to a Medicare+Choice MSA under subsection (e)(i) shall be made from the Federal Hospital Insurance Trust Fund and the Federal Supplementary Medical Insurance Trust Fund in such proportion as the Secretary determines reflects the relative weight that benefits under part A and under part B represents of the actuarial value of the total benefits under this title. Monthly payments otherwise payable under this section for October 2000 shall be paid on the first business day of such month. Monthly payments otherwise payable under this section for October 2001 shall be paid on the <page identifier="/us/stat/111/307">111 STAT. 307</page>last business day of September 2001. Monthly payments otherwise payable under this section for October 2006 shall be paid on the first business day of October 2006.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Special Rule for Certain Inpatient Hospital Stays</inline>.—</heading><chapeau>In the case of an individual who is receiving inpatient hospital services from a subsection (d) hospital (as defined in section 1886(d)(1)(B)) as of the effective date of the individual’s—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <chapeau>election under this part of a Medicare+Choice plan offered by a Medicare+Choice organization—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>payment for such services until the date of the individual’s discharge shall be made under this title through the Medicare+Choice plan or the original medicare fee-for-service program option described in section 1851(a)(1)(A) (as the case may be) elected before the election with such organization,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the elected organization shall not be financially responsible for payment for such services until the date after the date of the individual’s discharge, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>the organization shall nonetheless be paid the full amount otherwise payable to the organization under this part; or</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <chapeau>termination of election with respect to a Medicare+Choice organization under this part—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the organization shall be financially responsible for payment for such services after such date and until the date of the individual’s discharge,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>payment for such services during the stay shall not be made under section 1886(d) or by any succeeding Medicare+Choice organization, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>the terminated organization shall not receive any payment with respect to the individual under this part during the period the individual is not enrolled.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Special Rule For Hospice Care</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Information</inline>.—</heading><chapeau>A contract under this part shall require the Medicare+Choice organization to inform each individual enrolled under this part with a Medicare+Choice plan offered by the organization about the availability of hospice care if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>a hospice program participating under this title is located within the organization’s service area; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>it is common practice to refer patients to hospice programs outside such service area.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Payment</inline>.—</heading><chapeau>If an individual who is enrolled with a Medicare+Choice organization under this part makes an election under section 1812(d)(1) to receive hospice care from a particular hospice program—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>payment for the hospice care furnished to the individual shall be made to the hospice program elected by the individual by the Secretary;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>payment for other services for which the individual is eligible notwithstanding the individual’s election of hospice care under section 1812(d)(1), including services not related to the individual’s terminal illness, shall be made by the Secretary to the Medicare+Choice organization or the provider or supplier of the service instead of payments calculated under subsection (a); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>the Secretary shall continue to make monthly payments to the Medicare+Choice organization in an <page identifier="/us/stat/111/308">111 STAT. 308</page>amount equal to the value of the additional benefits required under section 1854(f)(1)(A).</content></subparagraph> </paragraph> </subsection> </section> </level> <level> <heading class="centered">“<inline class="smallCaps">premiums</inline></heading> <section> <num value="1854">“<inline class="smallCaps">Sec</inline>. 1854.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395w–24">42 USC 1395w–24</ref>.</p></sidenote> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Submission of Proposed Premiums and Related Information</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Not later than May 1 of each year, each Medicare+Choice organization shall submit to the Secretary, in a form and manner specified by the Secretary and for each Medicare+Choice plan for the service area in which it intends to be offered in the following year—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the information described in paragraph (2), (3), or (4) for the type of plan involved; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the enrollment capacity (if any) in relation to the plan and area.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Information required for coordinated care plans</inline>.—</heading><chapeau>For a Medicare+Choice plan described in section 1851(a)(2)(A), the information described in this paragraph is as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Basic (and additional) benefits</inline>.—</heading><chapeau>For benefits described in 1852(a)(1)(A)—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the adjusted community rate (as defined in subsection (f)(3));</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the Medicare+Choice monthly basic beneficiary premium (as defined in subsection (b)(2)(A));</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>a description of deductibles, coinsurance, and copayments applicable under the plan and the actuarial value of such deductibles, coinsurance, and copayments, described in subsection (e)(1)(A); and</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>if required under subsection (f)(1), a description of the additional benefits to be provided pursuant to such subsection and the value determined for such proposed benefits under such subsection.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Supplemental benefits</inline>.—</heading><chapeau>For benefits described in 1852(a)(3)—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the adjusted community rate (as defined in subsection (f)(3));</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the Medicare+Choice monthly supplemental beneficiary premium (as defined in subsection (b)(2)(B)); and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>a description of deductibles, coinsurance, and copayments applicable under the plan and the actuarial value of such deductibles, coinsurance, and copayments, described in subsection (e)(2).</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Requirements for msa plans</inline>.—</heading><chapeau>For an MSA plan described, the information described in this paragraph is as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Basic (and additional) benefits</inline>.—</heading><content>For benefits described in 1852(a)(1)(A), the amount of the Medicare+Choice monthly MSA premium.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Supplemental benefits</inline>.—</heading><content>For benefits described in 1852(a)(3), the amount of the Medicare+Choice monthly supplementary beneficiary premium.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Requirements for private fee-for-service plans</inline>.—</heading><chapeau>For a Medicare+Choice plan described in section 1851(a)(2)(C) for benefits described in 1852(a)(1)(A), the information described in this paragraph is as follows:</chapeau> <page identifier="/us/stat/111/309">111 STAT. 309</page> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Basic (and additional) benefits</inline>.—</heading><chapeau>For benefits described in 1852(a)(1)(A)—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the adjusted community rate (as defined in subsection (f)(3));</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the amount of the Medicare+Choice monthly basic beneficiary premium;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>a description of the deductibles, coinsurance, and copayments applicable under the plan, and the actuarial value of such deductibles, coinsurance, and copayments, as described in subsection (e)(4)(A); and</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>if required under subsection (f)(1), a description of the additional benefits to be provided pursuant to such subsection and the value determined for such proposed benefits under such subsection.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Supplemental benefits</inline>.—</heading><content>For benefits described in 1852(a)(3), the amount of the Medicare+Choice monthly supplemental beneficiary premium (as defined in subsection (b)(2)(B)).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Review</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subject to subparagraph (B), the Secretary shall review the adjusted community rates, the amounts of the basic and supplemental premiums, and values filed under this subsection and shall approve or disapprove such rates, amounts, and value so submitted.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Exception</inline>.—</heading><content>The Secretary shall not review, approve, or disapprove the amounts submitted under paragraph (3) or subparagraphs (A)(ii) and (B) of paragraph (4).</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Monthly Premium Charged</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Rule for other than msa plans</inline>.—</heading><content>The monthly amount of the premium charged to an individual enrolled in a Medicare+Choice plan (other than an MSA plan) offered by a Medicare+Choice organization shall be equal to the sum of the Medicare+Choice monthly basic beneficiary premium and the Medicare+Choice monthly supplementary beneficiary premium (if any).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Msa plans</inline>.—</heading><content>The monthly amount of the premium charged to an individual enrolled in an MSA plan offered by a Medicare+Choice organization shall be equal to the Medicare+Choice monthly supplemental beneficiary premium (if any).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Premium terminology defined</inline>.—</heading><chapeau>For purposes of this part:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">The medicare+choice monthly basic beneficiary premium</inline>.—</heading><content>The term ‘Medicare+Choice monthly basic beneficiary premium’ means, with respect to a Medicare+Choice plan, the amount authorized to be charged under subsection (e)(1) for the plan, or, in the case of a Medicare+Choice private fee-for-service plan, the amount filed under subsection (a)(4)(A)(ii).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Medicare+choice monthly supplemental beneficiary premium</inline>.—</heading><content>The term ‘Medicare+Choice monthly supplemental beneficiary premium’ means, with respect to a Medicare+Choice plan, the amount authorized to be charged under subsection (e)(2) for the plan or, in the case of a MSA plan or Medicare+Choice private fee-for-<page identifier="/us/stat/111/310">111 STAT. 310</page>service plan, the amount filed under paragraph (3)(B) or (4)(B) of subsection (a).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Medicare+choice monthly msa premium</inline>.—</heading><content>The term ‘Medicare+Choice monthly MSA premium’ means, with respect to a Medicare+Choice plan, the amount of such premium filed under subsection (a)(3)(A) for the plan.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Uniform Premium</inline>.—</heading><content>The Medicare+Choice monthly basic and supplemental beneficiary premium, the Medicare+Choice monthly MSA premium charged under subsection (b) of a Medicare+Choice organization under this part may not vary among individuals enrolled in the plan.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Terms and Conditions of Imposing Premiums</inline>.—</heading><content>Each Medicare+Choice organization shall permit the payment of Medicare+Choice monthly basic and supplemental beneficiary premiums on a monthly basis, may terminate election of individuals for a Medicare+Choice plan for failure to make premium payments only in accordance with section 1851(g)(3)(B)(i), and may not provide for cash or other monetary rebates as an inducement for enrollment or otherwise.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Limitation on Enrollee Liability</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">For basic and additional benefits</inline>.—</heading><chapeau>In no event may—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the Medicare+Choice monthly basic beneficiary premium (multiplied by 12) and the actuarial value of the deductibles, coinsurance, and copayments applicable on average to individuals enrolled under this part with a Medicare+Choice plan described in section 1851(a)(2)(A) of an organization with respect to required benefits described in section 1852(a)(1)(A) and additional benefits (if any) required under subsection (f)(1)(A) for a year, exceed</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the actuarial value of the deductibles, coinsurance, and copayments that would be applicable on average to individuals entitled to benefits under part A and enrolled under part B if they were not members of a Medicare+Choice organization for the year.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">For supplemental benefits</inline>.—</heading><content>If the Medicare+Choice organization provides to its members enrolled under this part in a Medicare+Choice plan described in section 1851(a)(2)(A) with respect to supplemental benefits described in section 1852(a)(3), the sum of the Medicare+Choice monthly supplemental beneficiary premium (multiplied by 12) charged and the actuarial value of its deductibles, coinsurance, and copayments charged with respect to such benefits may not exceed the adjusted community rate for such benefits (as defined in subsection (f)(3)).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Determination on other basis</inline>.—</heading><content>If the Secretary determines that adequate data are not available to determine the actuarial value under paragraph (1)(A) or (2), the Secretary may determine such amount with respect to all individuals in same geographic area, the State, or in the United States, eligible to enroll in the Medicare+Choice plan involved under this part or on the basis of other appropriate data.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Special rule for private fee-for-service plans</inline>.—</heading><chapeau>With respect to a Medicare+Choice private fee-for-service plan (other than a plan that is an MSA plan), in no event may—<page identifier="/us/stat/111/311">111 STAT. 311</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the actuarial value of the deductibles, coinsurance, and copayments applicable on average to individuals enrolled under this part with such a plan of an organization with respect to required benefits described in section 1852(a)(1), exceed</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the actuarial value of the deductibles, coinsurance, and copayments that would be applicable on average to individuals entitled to benefits under part A and enrolled under part B if they were not members of a Medicare+Choice organization for the year.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Requirement for Additional Benefits</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Requirement</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Each Medicare+Choice organization (in relation to a Medicare+Choice plan, other than an MSA plan, it offers) shall provide that if there is an excess amount (as defined in subparagraph (B)) for the plan for a contract year, subject to the succeeding provisions of this subsection, the organization shall provide to individuals such additional benefits (as the organization may specify) in a value which the Secretary determines is at least equal to the adjusted excess amount (as defined in subparagraph (C)).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Excess amount</inline>.—</heading><chapeau>For purposes of this paragraph, the ‘excess amount’, for an organization for a plan, is the amount (if any) by which—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the average of the capitation payments made to the organization under section 1853 for the plan at the beginning of contract year, exceeds</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the actuarial value of the required benefits described in section 1852(a)(1)(A) under the plan for individuals under this part, as determined based upon an adjusted community rate described in paragraph (3) (as reduced for the actuarial value of the coinsurance, copayments, and deductibles under parts A and B).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Adjusted excess amount</inline>.—</heading><content>For purposes of this paragraph, the ‘adjusted excess amount’, for an organization for a plan, is the excess amount reduced to reflect any amount withheld and reserved for the organization for the year under paragraph (2).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Uniform application</inline>.—</heading><content>This paragraph shall be applied uniformly for all enrollees for a plan.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Construction</inline>.—</heading><content>Nothing in this subsection shall be construed as preventing a Medicare+Choice organization from providing supplemental benefits (described in section 1852(a)(3)) that are in addition to the health care benefits otherwise required to be provided under this paragraph and from imposing a premium for such supplemental benefits.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Stabilization fund</inline>.—</heading><content>A Medicare+Choice organization may provide that a part of the value of an excess amount described in paragraph (1) be withheld and reserved in the Federal Hospital Insurance Trust Fund and in the Federal Supplementary Medical Insurance Trust Fund (in such proportions as the Secretary determines to be appropriate) by the Secretary for subsequent annual contract periods, to the extent required to stabilize and prevent undue fluctuations in the <page identifier="/us/stat/111/312">111 STAT. 312</page>additional benefits offered in those subsequent periods by the organization in accordance with such paragraph. Any of such value of the amount reserved which is not provided as additional benefits described in paragraph (1)(A) to individuals electing the Medicare+Choice plan of the organization in accordance with such paragraph prior to the end of such periods, shall revert for the use of such trust funds.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Adjusted community rate</inline>.—</heading><chapeau>For purposes of this subsection, subject to paragraph (4), the term adjusted community rate’ for a service or services means, at the election of a Medicare+Choice organization, either—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the rate of payment for that service or services which the Secretary annually determines would apply to an individual electing a Medicare+Choice plan under this part if the rate of payment were determined under a ‘community rating system’ (as defined in section 1302(8) of the Public Health Service Act, other than subparagraph (O), or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>such portion of the weighted aggregate premium, which the Secretary annually estimates would apply to such an individual, as the Secretary annually estimates is attributable to that service or services,</content></subparagraph> <continuation class="indent0 fontsize10">but adjusted for differences between the utilization characteristics of the individuals electing coverage under this part and the utilization characteristics of the other enrollees with the plan (or, if the Secretary finds that adequate data are not available to adjust for those differences, the differences between the utilization characteristics of individuals selecting other Medicare+Choice coverage, or Medicare+Choice eligible individuals in the area, in the State, or in the United States, eligible to elect Medicare+Choice coverage under this part and the utilization characteristics of the rest of the population in the area, in the State, or in the United States, respectively).</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Determination based on insufficient data</inline>.—</heading><content>For purposes of this subsection, if the Secretary finds that there is insufficient enrollment experience to determine an average of the capitation payments to be made under this part at the beginning of a contract period or to determine (in the case of a newly operated provider-sponsored organization or other new organization) the adjusted community rate for the organization, the Secretary may determine such an average based on the enrollment experience of other contracts entered into under this part and may determine such a rate using data in the general commercial marketplace.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Prohibition of state imposition of premium taxes</inline>.—</heading><content>No State may impose a premium tax or similar tax with respect to payments to Medicare+Choice organizations under section 1853.</content> </subsection> </section> </level> <level> <heading class="centered">“<inline class="smallCaps">organizational and financial requirements for medicare+choice organizations; provider-sponsored organizations</inline></heading> <section> <num value="1855">“SEC. 1855.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395w–25">42 USC 1395w–25</ref>.</p></sidenote> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Organized and Licensed Under State Law</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subject to paragraphs (2) and (3), a Medicare+Choice organization shall be organized and licensed under State law as a risk-bearing entity eligible to offer health insurance or health benefits coverage in each State in which it offers a Medicare+Choice plan.<page identifier="/us/stat/111/313">111 STAT. 313</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Special exception for provider-sponsored organizations</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of a provider-sponsored organization that seeks to offer a Medicare+Choice plan in a State, the Secretary shall waive the requirement of paragraph (1) that the organization be licensed in that State if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the organization files an application for such waiver with the Secretary by not later than November 1, 2002, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the Secretary determines, based on the application and other evidence presented to the Secretary, that any of the grounds for approval of the application described in subparagraph (B), (C), or (D) has been met.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Failure to act on licensure application on a timely basis</inline>.—</heading><content>The ground for approval of such a waiver application described in this subparagraph is that the State has failed to complete action on a licensing application of the organization within 90 days of the date of the State’s receipt of a substantially complete application. No period before the date of the enactment of this section shall be included in determining such 90-day period.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Denial of application based on discriminatory treatment</inline>.—</heading><chapeau>The ground for approval of such a waiver application described in this subparagraph is that the State has denied such a licensing application and—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the standards or review process imposed by the State as a condition of approval of the license imposes any material requirements, procedures, or standards (other than solvency requirements) to such organizations that are not generally applicable to other entities engaged in a substantially similar business, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the State requires the organization, as a condition of licensure, to offer any product or plan other than a Medicare+Choice plan.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Denial of application based on application of solvency requirements</inline>.—</heading><chapeau>With respect to waiver applications filed on or after the date of publication of solvency standards under section 1856(a), the ground for approval of such a waiver application described in this subparagraph is that the State has denied such a licensing application cased (in whole or in part) on the organization’s failure to meet applicable solvency requirements and—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>such requirements are not the same as the solvency standards established under section 1856(a); or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the State has imposed as a condition of approval of the license documentation or information requirements relating to solvency or other material requirements, procedures, or standards relating to solvency that are different from the requirements, procedures, and standards applied by the Secretary under subsection (d)(2).</content></clause> <continuation class="indent0 fontsize10">For purposes of this paragraph, the term ‘solvency requirements’ means requirements relating to solvency and other <page identifier="/us/stat/111/314">111 STAT. 314</page>matters covered under the standards established under section 1856(a).</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Treatment of waiver</inline>.—</heading><chapeau>In the case of a waiver granted under this paragraph for a provider-sponsored organization with respect to a State—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Limitation to state</inline>.—</heading><content>The waiver shall be effective only with respect to that State and does not apply to any other State.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Limitation to 36-month period</inline>.—</heading><content>The waiver shall be effective only for a 36-month period and may not be renewed.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Conditioned on compliance with consumer protection and quality standards</inline>.—</heading><content>The continuation of the waiver is conditioned upon the organization’s compliance with the requirements described in subparagraph (G).</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <heading><inline class="smallCaps">Preemption of state law</inline>.—</heading><content>Any provisions of law of that State which relate to the licensing of the organization and which prohibit the organization from providing coverage pursuant to a contract under this part shall be superseded.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <heading><inline class="smallCaps">Prompt action on application</inline>.—</heading><content>The Secretary shall grant or deny such a waiver application within 60 days after the date the Secretary determines that a substantially complete waiver application has been filed. Nothing in this section shall be construed as preventing an organization which has had such a waiver application denied from submitting a subsequent waiver application.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <heading><inline class="smallCaps">Application and enforcement of state consumer protection and quality standards</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>A waiver granted under this paragraph to an organization with respect to licensing under State law is conditioned upon the organization’s compliance with all consumer protection and quality standards insofar as such standards—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>would apply in the State to the organization if it were licensed under State law;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>are generally applicable to other Medicare+Choice organizations and plans in the State; and</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>are consistent with the standards established under this part.</content></subclause> <continuation class="indent0 fontsize10">Such standards shall not include any standard preempted under section 1856(b)(3)(B).</continuation> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Incorporation into contract</inline>.—</heading><content>In the case of such a waiver granted to an organization with respect to a State, the Secretary shall incorporate the requirement that the organization (and Medicare+Choice plans it offers) comply with standards under clause (i) as part of the contract between the Secretary and the organization under section 1857.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Enforcement</inline>.—</heading><content>In the case of such a waiver granted to an organization with respect to a State, the Secretary may enter into an agreement with the State under which the State agrees to provide for monitoring and enforcement activities with respect to compliance of such an organization and its <page identifier="/us/stat/111/315">111 STAT. 315</page>Medicare+Choice plans with such standards. Such monitoring and enforcement shall be conducted by the State in the same manner as the State enforces such standards with respect to other Medicare+Choice organizations and plans, without discrimination based on the type of organization to which the standards apply. Such an agreement shall specify or establish mechanisms by which compliance activities are undertaken, while not lengthening the time required to review and process applications for waivers under this paragraph.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num> <heading><inline class="smallCaps">Report</inline>.—</heading><content>By not later than December 31, 2001, the Secretary shall submit to the Committee on Ways and Means and the Committee on Commerce of the House of Representatives and the Committee on Finance of the Senate a report regarding whether the waiver process under this paragraph should be continued after December 31, 2002. In making such recommendation, the Secretary shall consider, among other factors, the impact of such process on beneficiaries and on the long-term solvency of the program under this title.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Licensure does not substitute for or constitute certification</inline>.—</heading><content>The fact that an organization is licensed in accordance with paragraph (1) does not deem the organization to meet other requirements imposed under this part.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Assumption of Full Financial Risk</inline>.—</heading><chapeau>The Medicare+Choice organization shall assume full financial risk on a prospective basis for the provision of the health care services for which benefits are required to be provided under section 1852(a)(1), except that the organization—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>may obtain insurance or make other arrangements for the cost of providing to any enrolled member such services the aggregate value of which exceeds such aggregate level as the Secretary specifies from time to time,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>may obtain insurance or make other arrangements for the cost of such services provided to its enrolled members other than through the organization because medical necessity required their provision before they could be secured through the organization,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>may obtain insurance or make other arrangements for not more than 90 percent of the amount by which its costs for any of its fiscal years exceed 115 percent of its income for such fiscal year, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>may make arrangements with physicians or other health care professionals, health care institutions, or any combination of such individuals or institutions to assume all or part of the financial risk on a prospective basis for the provision of basic health services by the physicians or other health professionals or through the institutions.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Certification of Provision Against Risk of Insolvency for Unlicensed PSOS</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Each Medicare+Choice organization that is a provider-sponsored organization, that is not licensed by a State under subsection (a), and for which a waiver application has been approved under subsection (a)(2), shall meet standards established under section 1856(a) relating to the financial solvency and capital adequacy of the organization.<page identifier="/us/stat/111/316">111 STAT. 316</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Certification process for solvency standards for psos</inline>.—</heading><content>The Secretary shall establish a process for the receipt and approval of applications of a provider-sponsored organization described in paragraph (1) for certification (and periodic recertification) of the organization as meeting such solvency standards. Under such process, the Secretary shall act upon such a certification application not later than 60 days after the date the application has been received.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Provider-Sponsored Organization Defined</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In this part, the term ‘provider-sponsored organization’ means a public or private entity—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>that is established or organized, and operated, by a health care provider, or group of affiliated health care providers,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>that provides a substantial proportion (as defined by the Secretary in accordance with paragraph (2)) of the health care items and services under the contract under this part directly through the provider or affiliated group of providers, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>with respect to which the affiliated providers share, directly or indirectly, substantial financial risk with respect to the provision of such items and services and have at least a majority financial interest in the entity.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Substantial proportion</inline>.—</heading><chapeau>In defining what is a ‘substantial proportion’ for purposes of paragraph (1)(B), the Secretary—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>shall take into account the need for such an organization to assume responsibility for providing—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>significantly more than the majority of the items and services under the contract under this section through its own affiliated providers; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>most of the remainder of the items and services under the contract through providers with which the organization has an agreement to provide such items and services,</content></clause> <continuation class="indent0 fontsize10">in order to assure financial stability and to address the practical considerations involved in integrating the delivery of a wide range of service providers;</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>shall take into account the need for such an organization to provide a limited proportion of the items and services under the contract through providers that are neither affiliated with nor have an agreement with the organization; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>may allow for variation in the definition of substantial proportion among such organizations based on relevant differences among the organizations, such as their location in an urban or rural area.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Affiliation</inline>.—</heading><chapeau>For purposes of this subsection, a provider is ‘affiliated’ with another provider if, through contract, ownership, or otherwise—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>one provider, directly or indirectly, controls, is controlled by, or is under common control with the other,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>both providers are part of a controlled group of corporations under section 1563 of the Internal Revenue Code of 1986,<page identifier="/us/stat/111/317">111 STAT. 317</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>each provider is a participant in a lawful combination under which each provider shares substantial financial risk in connection with the organization’s operations, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>both providers are part of an affiliated service group under section 414 of such Code.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Control</inline>.—</heading><content>For purposes of paragraph (3), control is presumed to exist if one party, directly or indirectly, owns, controls, or holds the power to vote, or proxies for, not less than 51 percent of the voting rights or governance rights of another.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Health care provider defined</inline>.—</heading><chapeau>In this subsection, the term ‘health care provider’ means—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>any individual who is engaged in the delivery of health care services in a State and who is required by State law or regulation to be licensed or certified by the State to engage in the delivery of such services in the State, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>any entity that is engaged in the delivery of health care services in a State and that, if it is required by State law or regulation to be licensed or certified by the State to engage in the delivery of such services in the State, is so licensed.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Regulations</inline>.—</heading><content>The Secretary shall issue regulations to carry out this subsection.</content></paragraph> </subsection> </section> </level> <level> <heading class="centered">“<inline class="smallCaps">establishment of standards</inline></heading> <section> <num value="1856">“<inline class="smallCaps">Sec</inline>. 1856.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395w–26">42 USC 1395w–26</ref>.</p></sidenote> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Establishment of Solvency Standards for Provider-Sponsored Organizations</inline>.</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Establishment</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall establish, on an expedited basis and using a negotiated rulemaking process under subchapter III of chapter 5 of title 5, United States Code, standards described in section 1855(c)(1) (relating to the financial solvency and capital adequacy of the organization) that entities must meet to qualify as provider-sponsored organizations under this part.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Factors to consider for solvency standards</inline>.—</heading><chapeau>In establishing solvency standards under subparagraph (A) for provider-sponsored organizations, the Secretary shall consult with interested parties and shall take into account—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the delivery system assets of such an organization and ability of such an organization to provide services directly to enrollees through affiliated providers,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>alternative means of protecting against insolvency, including reinsurance, unrestricted surplus, letters of credit, guarantees, organizational insurance coverage, partnerships with other licensed entities, and valuation attributable to the ability of such an organization to meet its service obligations through direct delivery of care, and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>any standards developed by the National Association of Insurance Commissioners specifically for risk-based health care delivery organizations.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Enrollee protection against insolvency</inline>.—</heading><content>Such standards shall include provisions to prevent enrollees <page identifier="/us/stat/111/318">111 STAT. 318</page>from being held liable to any person or entity for the Medicare+Choice organization’s debts in the event of the organization’s insolvency.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Publication of notice</inline>.—</heading><content>In carrying out the rulemaking process under this subsection, the Secretary, after consultation with the National Association of Insurance Commissioners, the American Academy of Actuaries, organizations representative of medicare beneficiaries, and other interested parties, shall publish the notice provided for under section 564(a) of title 5, United States Code, by not later than 45 days after the date of the enactment of this section.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Target date for publication of rule</inline>.—</heading><content>As part of the notice under paragraph (2), and for purposes of this subsection, the ‘target date for publication’ (referred to in section 564(a)(5) of such title) shall be April 1, 1998.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Abbreviated period for submission of comments</inline>.—</heading><content>In applying section 564(c) of such title under this subsection, ‘15 days’ shall be substituted for ‘30 days’.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Appointment of negotiated rulemaking committee and facilitator</inline>.—</heading><chapeau>The Secretary shall provide for—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the appointment of a negotiated rulemaking committee under section 565(a) of such title by not later than 30 days after the end of the comment period provided for under section 564(c) of such title (as shortened under paragraph (4)), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the nomination of a facilitator under section 566(c) of such title by not later than 10 days after the date of appointment of the committee.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Preliminary committee report</inline>.—</heading><content>The negotiated rulemaking committee appointed under paragraph (5) shall report to the Secretary, by not later than January 1, 1998, regarding the committee’s progress on achieving a consensus with regard to the rulemaking proceeding and whether such consensus is likely to occur before 1 month before the target date for publication of the rule. If the committee reports that the committee has failed to make significant progress towards such consensus or is unlikely to reach such consensus by the target date, the Secretary may terminate such process and provide for the publication of a rule under this subsection through such other methods as the Secretary may provide.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Final committee report</inline>.—</heading><content>If the committee is not terminated under paragraph (6), the rulemaking committee shall submit a report containing a proposed rule by not later than 1 month before the target date of publication.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Federal Register, publication.</p></sidenote> <heading><inline class="smallCaps">Interim, final effect</inline>.—</heading><content>The Secretary shall publish a rule under this subsection in the Federal Register by not later than the target date of publication. Such rule shall be effective and final immediately on an interim basis, but is subject to change and revision after public notice and opportunity for a period (of not less than 60 days) for public comment. In connection with such rule, the Secretary shall specify the process for the timely review and approval of applications of entities to be certified as provider-sponsored organizations pursuant to such rules and consistent with this subsection.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">“(9)</num> <heading><inline class="smallCaps">Publication of rule after public comment</inline>.—</heading><content>The Secretary shall provide for consideration of such comments <page identifier="/us/stat/111/319">111 STAT. 319</page>and republication of such rule by not later than 1 year after the target date of publication.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Establishment of Other Standards</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall establish by regulation<sidenote><p class="indent0 firstIndent0 fontsize8">Publication.</p></sidenote> other standards (not described in subsection (a)) for Medicare+Choice organizations and plans consistent with, and to carry out, this part. The Secretary shall publish such regulations by June 1, 1998. In order to carry out this requirement in a timely manner, the Secretary may promulgate regulations that take effect on an interim basis, after notice and pending opportunity for public comment.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Use of current standards</inline>.—</heading><content>Consistent with the requirements of this part, standards established under this subsection shall be based on standards established under section 1876 to carry out analogous provisions of such section.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Relation to state laws</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The standards established under this subsection shall supersede any State law or regulation (including standards described in subparagraph (B)) with respect to Medicare+Choice plans which are offered by Medicare+Choice organizations under this part to the extent such law or regulation is inconsistent with such standards.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Standards specifically superseded</inline>.—</heading><chapeau>State standards relating to the following are superseded under this paragraph:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>Benefit requirements.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>Requirements relating to inclusion or treatment of providers.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>Coverage determinations (including related appeals and grievance processes).</content></clause> </subparagraph> </paragraph> </subsection> </section> </level> <level> <heading class="centered">“<inline class="smallCaps">contracts with medicare+choice organizations</inline></heading> <section> <num value="1857">“<inline class="smallCaps">Sec</inline>. 1857.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s395w–27">42 USC 395w–27</ref>.</p></sidenote> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>The Secretary shall not permit the election under section 1851 of a Medicare+Choice plan offered by a Medicare+Choice organization under this part, and no payment shall be made under section 1853 to an organization, unless the Secretary has entered into a contract under this section with the organization with respect to the offering of such plan. Such a contract with an organization may cover more than 1 Medicare+Choice plan. Such contract shall provide that the organization agrees to comply with the applicable requirements and standards of this part and the terms and conditions of payment as provided for in this part.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Minimum Enrollment Requirements</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Subject to paragraph (2), the Secretary may not enter into a contract under this section with a Medicare+Choice organization unless the organization has—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>at least 5,000 individuals (or 1,500 individuals in the case of an organization that is a provider-sponsored organization) who are receiving health benefits through the organization, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>at least 1,500 individuals (or 500 individuals in the case of an organization that is a provider-sponsored organization) who are receiving health benefits through the organization if the organization primarily serves individuals residing outside of urbanized areas.<page identifier="/us/stat/111/320">111 STAT. 320</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Application to msa plans</inline>.—</heading><content>In applying paragraph (1) in the case of a Medicare+Choice organization that is offering an MSA plan, paragraph (1) shall be applied by substituting covered lives for individuals.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Allowing transition</inline>.—</heading><content>The Secretary may waive the requirement of paragraph (1) during the first 3 contract years with respect to an organization.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Contract Period and Effectiveness</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Period</inline>.—</heading><content>Each contract under this section shall be for a term of at least 1 year, as determined by the Secretary, and may be made automatically renewable from term to term in the absence of notice by either party of intention to terminate at the end of the current term.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Termination authority</inline>.—</heading><chapeau>In accordance with procedures established under subsection (h), the Secretary may at any time terminate any such contract if the Secretary determines that the organization—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>has failed substantially to carry out the contract;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>is carrying out the contract in a manner inconsistent with the efficient and effective administration of this part; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>no longer substantially meets the applicable conditions of this part.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Effective date of contracts</inline>.—</heading><content>The effective date of any contract executed pursuant to this section shall be specified in the contract, except that in no case shall a contract under this section which provides for coverage under an MSA plan be effective before January 1999 with respect to such coverage.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Previous terminations</inline>.—</heading><content>The Secretary may not enter into a contract with a Medicare+Choice organization if a previous contract with that organization under this section was terminated at the request of the organization within the preceding 5-year period, except in circumstances which warrant special consideration, as determined by the Secretary.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Contracting authority</inline>.—</heading><content>The authority vested in the Secretary by this part may be performed without regard to such provisions of law or regulations relating to the making, performance, amendment, or modification of contracts of the United States as the Secretary may determine to be inconsistent with the furtherance of the purpose of this title.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Protections Against Fraud and Beneficiary Protections</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Periodic auditing</inline>.—</heading><content>The Secretary shall provide for the annual auditing of the financial records (including data relating to medicare utilization, costs, and computation of the adjusted community rate) of at least one-third of the Medicare+Choice organizations offering Medicare+Choice plans under this part. The Comptroller General shall monitor auditing activities conducted under this subsection.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Inspection and audit</inline>.—</heading><chapeau>Each contract under this section shall provide that the Secretary, or any person or organization designated by the Secretary—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>shall have the right to inspect or otherwise evaluate (i) the quality, appropriateness, and timeliness of services performed under the contract, and (ii) the facilities <page identifier="/us/stat/111/321">111 STAT. 321</page>of the organization when there is reasonable evidence of some need for such inspection, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>shall have the right to audit and inspect any books and records of the Medicare+Choice organization that pertain (i) to the ability of the organization to bear the risk of potential financial losses, or (ii) to services performed or determinations of amounts payable under the contract.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Enrollee notice at time of termination</inline>.—</heading><content>Each contract under this section shall require the organization to provide (and pay for) written notice in advance of the contract’s termination, as well as a description of alternatives for obtaining benefits under this title, to each individual enrolled with the organization under this part.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Disclosure</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Each Medicare+Choice organization shall, in accordance with regulations of the Secretary, report to the Secretary financial information which shall include the following:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>Such information as the Secretary may require demonstrating that the organization has a fiscally sound operation.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>A copy of the report, if any, filed with the Health Care Financing Administration containing the information required to be reported under section 1124 by disclosing entities.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <chapeau>A description of transactions, as specified by the Secretary, between the organization and a party in interest. Such transactions shall include—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>any sale or exchange, or leasing of any property between the organization and a party in interest;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>any furnishing for consideration of goods, services (including management services), or facilities between the organization and a party in interest, but not including salaries paid to employees for services provided in the normal course of their employment and health services provided to members by hospitals and other providers and by staff, medical group (or groups), individual practice association (or associations), or any combination thereof; and</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>any lending of money or other extension of credit between an organization and a party in interest.</content></subclause> </clause> <continuation class="indent0 fontsize10">The Secretary may require that information reported respecting an organization which controls, is controlled by, or is under common control with, another entity be in the form of a consolidated financial statement for the organization and such entity.</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Party in interest defined</inline>.—</heading><chapeau>For the purposes of this paragraph, the term ‘party in interest’ means—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>any director, officer, partner, or employee responsible for management or administration of a Medicare+Choice organization, any person who is directly or indirectly the beneficial owner of more than 5 percent of the equity of the organization, any person <page identifier="/us/stat/111/322">111 STAT. 322</page>who is the beneficial owner of a mortgage, deed of trust, note, or other interest secured by, and valuing more than 5 percent of the organization, and, in the case of a Medicare+Choice organization organized as a nonprofit corporation, an incorporator or member of such corporation under applicable State corporation law;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>any entity in which a person described in clause (i)—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>is an officer or director;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>is a partner (if such entity is organized as a partnership);</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>has directly or indirectly a beneficial interest of more than 5 percent of the equity; or</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>has a mortgage, deed of trust, note, or other interest valuing more than 5 percent of the assets of such entity;</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>any person directly or indirectly controlling, controlled by, or under common control with an organization; and</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>any spouse, child, or parent of an individual described in clause (i).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Access to information</inline>.—</heading><content>Each Medicare+Choice organization shall make the information reported pursuant to subparagraph (A) available to its enrollees upon reasonable request.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Loan information</inline>.—</heading><content>The contract shall require the organization to notify the Secretary of loans and other special financial arrangements which are made between the organization and subcontractors, affiliates, and related parties.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Additional Contract Terms</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The contract shall contain such other terms and conditions not inconsistent with this part (including requiring the organization to provide the Secretary with such information) as the Secretary may find necessary and appropriate.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Cost-sharing in enrollment-related costs</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>A Medicare+Choice organization shall pay the fee established by the Secretary under subparagraph (B).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Authorization</inline>.—</heading><content>The Secretary is authorized to charge a fee to each Medicare+Choice organization with a contract under this part that is equal to the organization’s pro rata share (as determined by the Secretary) of the aggregate amount of fees which the Secretary is directed to collect in a fiscal year. Any amounts collected are authorized to be appropriated only for the purpose of carrying out section 1851 (relating to enrollment and dissemination of information) and section 4360 of the Omnibus Budget Reconciliation Act of 1990 (relating to the health insurance counseling and assistance program).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Contingency</inline>.—</heading><content>For any fiscal year, the fees authorized under subparagraph (B) are contingent upon enactment in an appropriations act of a provision specifying the aggregate amount of fees the Secretary is directed to collect in a fiscal year. Fees collected during any fiscal <page identifier="/us/stat/111/323">111 STAT. 323</page>year under this paragraph shall be deposited and credited as offsetting collections.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Limitation</inline>.—</heading><chapeau>In any fiscal year the fees collected by the Secretary under subparagraph (B) shall not exceed the lesser of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the estimated costs to be incurred by the Secretary in the fiscal year in carrying out the activities described in section 1851 and section 4360 of the Omnibus Budget Reconciliation Act of 1990; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num><subclause class="inline"><num value="I">(I)</num> <content>$200,000,000 in fiscal year 1998;</content></subclause> <subclause class="indent0 fontsize10"><num value="II">“(II)</num> <content>$150,000,000 in fiscal year 1999; and</content></subclause> <subclause class="indent0 fontsize10"><num value="III">“(III)</num> <content>$100,000,000 in fiscal year 2000 and each subsequent fiscal year.</content></subclause> </clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Prompt Payment by Medicare+Choice Organization</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Requirement</inline>.—</heading><content>A contract under this part shall require a Medicare+Choice organization to provide prompt payment (consistent with the provisions of sections 1816(c)(2) and 1842(c)(2)) of claims submitted for services and supplies furnished to enrollees pursuant to the contract, if the services or supplies are not furnished under a contract between the organization and the provider or supplier (or in the case of a Medicare+Choice private fee-for-service plan, if a claim is submitted to such organization by an enrollee).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Secretary’s option to bypass noncomplying organization</inline>.—</heading><content>In the case of a Medicare+Choice eligible organization which the Secretary determines, after notice and opportunity for a hearing, has failed to make payments of amounts in compliance with paragraph (1), the Secretary may provide for direct payment of the amounts owed to providers and suppliers (or, in the case of a Medicare+Choice private fee-for-service plan, amounts owed to the enrollees) for covered services and supplies furnished to individuals enrolled under this part under the contract. If the Secretary provides for the direct payments, the Secretary shall provide for an appropriate reduction in the amount of payments otherwise made to the organization under this part to reflect the amount of the Secretary’s payments (and the Secretary’s costs in making the payments).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Intermediate Sanctions</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>If the Secretary determines that a Medicare+Choice organization with a contract under this section—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>fails substantially to provide medically necessary items and services that are required (under law or under the contract) to be provided to an individual covered under the contract, if the failure has adversely affected (or has substantial likelihood of adversely affecting) the individual;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>imposes premiums on individuals enrolled under this part in excess of the amount of the Medicare+Choice monthly basic and supplemental beneficiary premiums permitted under section 1854;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>acts to expel or to refuse to re-enroll an individual in violation of the provisions of this part;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>engages in any practice that would reasonably be expected to have the effect of denying or discouraging enrollment (except as permitted by this part) by eligible individuals with the organization whose medical condition <page identifier="/us/stat/111/324">111 STAT. 324</page>or history indicates a need for substantial future medical services;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <chapeau>misrepresents or falsifies information that is furnished—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>to the Secretary under this part, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>to an individual or to any other entity under this part;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>fails to comply with the applicable requirements of section 1852(j)(3) or 1852(k)(2)(A)(ii); or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <content>employs or contracts with any individual or entity that is excluded from participation under this title under section 1128 or 1128A for the provision of health care, utilization review, medical social work, or administrative services or employs or contracts with any entity for the provision (directly or indirectly) through such an excluded individual or entity of such services;</content></subparagraph> <continuation class="indent0 fontsize10">the Secretary may provide, in addition to any other remedies authorized by law, for any of the remedies described in paragraph (2).</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Remedies</inline>.—</heading><chapeau>The remedies described in this paragraph are—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>civil money penalties of not more than $25,000 for each determination under paragraph (1) or, with respect to a determination under subparagraph (D) or (E)(i) of such paragraph, of not more than $100,000 for each such determination, plus, with respect to a determination under paragraph (1)(B), double the excess amount charged in violation of such paragraph (and the excess amount charged shall be deducted from the penalty and returned to the individual concerned), and plus, with respect to a determination under paragraph (1)(D), $15,000 for each individual not enrolled as a result of the practice involved,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>suspension of enrollment of individuals under this part after the date the Secretary notifies the organization of a determination under paragraph (1) and until the Secretary is satisfied that the basis for such determination has been corrected and is not likely to recur, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>suspension of payment to the organization under this part for individuals enrolled after the date the Secretary notifies the organization of a determination under paragraph (1) and until the Secretary is satisfied that the basis for such determination has been corrected and is not likely to recur.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Other intermediate sanctions</inline>.—</heading><chapeau>In the case of a Medicare+Choice organization for which the Secretary makes a determination under subsection (c)(2) the basis of which is not described in paragraph (1), the Secretary may apply the following intermediate sanctions:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Civil money penalties of not more than $25,000 for each determination under subsection (c)(2) if the deficiency that is the basis of the determination has directly adversely affected (or has the substantial likelihood of adversely affecting) an individual covered under the organization’s contract.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Civil money penalties of not more than $10,000 for each week beginning after the initiation of civil money <page identifier="/us/stat/111/325">111 STAT. 325</page>penalty procedures by the Secretary during which the deficiency that is the basis of a determination under subsection (c)(2) exists.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>Suspension of enrollment of individuals under this part after the date the Secretary notifies the organization of a determination under subsection (c)(2) and until the Secretary is satisfied that the deficiency that is the basis for the determination has been corrected and is not likely to recur.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Civil money penalties</inline>.—</heading><content>The provisions of section<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> 1128A (other than subsections (a) and (b)) shall apply to a civil money penalty under paragraph (2) or (3) in the same manner as they apply to a civil money penalty or proceeding under section 1128A(a).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Procedures for Termination</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The Secretary may terminate a contract with a Medicare+Choice organization under this section in accordance with formal investigation and compliance procedures established by the Secretary under which—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the Secretary provides the organization with the reasonable opportunity to develop and implement a corrective action plan to correct the deficiencies that were the basis of the Secretary’s determination under subsection (c)(2); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the Secretary provides the organization with reasonable notice and opportunity for hearing (including the right to appeal an initial decision) before terminating the contract.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Exception for imminent and serious risk to health</inline>.—</heading><content>Paragraph (1) shall not apply if the Secretary determines that a delay in termination, resulting from compliance with the procedures specified in such paragraph prior to termination, would pose an imminent and serious risk to the health of individuals enrolled under this part with the organization.</content></paragraph> </subsection> </section> </level> <level> <heading class="centered">“<inline class="smallCaps">definitions; miscellaneous provisions</inline></heading> <section> <num value="1859">“<inline class="smallCaps">Sec</inline>. 1859.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Definitions Relating to Medicare+Choice Organizations</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395w–28">42 USC 1395w–28</ref>.</p></sidenote><chapeau>In this part—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Medicare+choice organization</inline>.—</heading><content>The term ‘Medicare+Choice organization’ means a public or private entity that is certified under section 1856 as meeting the requirements and standards of this part for such an organization.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Provider-sponsored organization</inline>.—</heading><content>The term ‘provider-sponsored organization’ is defined in section 1855(d)(1).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Definitions Relating to Medicare+Choice Plans</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Medicare+choice plan</inline>.—</heading><content>The term ‘Medicare+Choice plan’ means health benefits coverage offered under a policy, contract, or plan by a Medicare+Choice organization pursuant to and in accordance with a contract under section 1857.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Medicare+choice private fee-for-service plan</inline>.—</heading><chapeau>The term ‘Medicare+Choice private fee-for-service plan’ means a Medicare+Choice plan that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>reimburses hospitals, physicians, and other providers at a rate determined by the plan on a fee-for-service basis without placing the provider at financial risk;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>does not vary such rates for such a provider based on utilization relating to such provider; and<page identifier="/us/stat/111/326">111 STAT. 326</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>does not restrict the selection of providers among those who are lawfully authorized to provide the covered services and agree to accept the terms and conditions of payment established by the plan.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">MSA plan</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘MSA plan’ means a Medicare+Choice plan that—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>provides reimbursement for at least the items and services described in section 1852(a)(1) in a year but only after the enrollee incurs countable expenses (as specified under the plan) equal to the amount of an annual deductible (described in subparagraph (B));</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>counts as such expenses (for purposes of such deductible) at least all amounts that would have been payable under parts A and B, and that would have been payable by the enrollee as deductibles, coinsurance, or copayments, if the enrollee had elected to receive benefits through the provisions of such parts; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <chapeau>provides, after such deductible is met for a year and for all subsequent expenses for items and services referred to in clause (i) in the year, for a level of reimbursement that is not less than—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>100 percent of such expenses, or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>100 percent of the amounts that would have been paid (without regard to any deductibles or coinsurance) under parts A and B with respect to such expenses, whichever is less.</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Deductible</inline>.—</heading><chapeau>The amount of annual deductible under an MSA plan—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>for contract year 1999 shall be not more than $6,000; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>for a subsequent contract year shall be not more than the maximum amount of such deductible for the previous contract year under this subparagraph increased by the national per capita Medicare+Choice growth percentage under section 1853(c)(6) for the year.</content></clause> <continuation class="indent0 fontsize10">If the amount of the deductible under clause (ii) is not a multiple of $50, the amount shall be rounded to the nearest multiple of $50.</continuation> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Other References to Other Terms</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Medicare+choice eligible individual</inline>.—</heading><content>The term ‘Medicare+Choice eligible individual’ is defined in section 1851(a)(3).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Medicare+choice payment area</inline>.—</heading><content>The term ‘Medicare+Choice payment area’ is defined in section 1853(d).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">National per capita medicare+choice growth percentage</inline>.—</heading><content>The ‘national per capita Medicare+Choice growth percentage’ is defined in section 1853(c)(6).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Medicare+choice monthly basic beneficiary premium; medicare+choice monthly supplemental beneficiary premium</inline>.—</heading><content>The terms ‘Medicare+Choice monthly basic beneficiary premium’ and ‘Medicare+Choice monthly supplemental beneficiary premium’ are defined in section 1854(a)(2).<page identifier="/us/stat/111/327">111 STAT. 327</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Coordinated Acute and Long-Term Care Benefits Under a Medicare+Choice Plan</inline>.—</heading><content>Nothing in this part shall be construed as preventing a State from coordinating benefits under a medicaid plan under title XIX with those provided under a Medicare+Choice plan in a manner that assures continuity of a full-range of acute care and long-term care services to poor elderly or disabled individuals eligible for benefits under this title and under such plan.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Restriction on Enrollment for Certain Medicare+Choice Plans</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In the case of a Medicare+Choice religious fraternal benefit society plan described in paragraph (2), notwithstanding any other provision of this part to the contrary and in accordance with regulations of the Secretary, the society offering the plan may restrict the enrollment of individuals under this part to individuals who are members of the church, convention, or group described in paragraph (3)(B) with which the society is affiliated.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Medicare+choice religious fraternal benefit society plan described</inline>.—</heading><chapeau>For purposes of this subsection, a Medicare+Choice religious fraternal benefit society plan described in this paragraph is a Medicare+Choice plan described in section 1851(a)(2)(A) that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>is offered by a religious fraternal benefit society described in paragraph (3) only to members of the church, convention, or group described in paragraph (3)(B); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>permits all such members to enroll under the plan without regard to health status-related factors.</content></subparagraph> <continuation class="indent0 fontsize10">Nothing in this subsection shall be construed as waiving any plan requirements relating to financial solvency.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Religious fraternal benefit society defined</inline>.—</heading><chapeau>For purposes of paragraph (2)(A), a ‘religious fraternal benefit society’ described in this section is an organization that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>is described in section 501(c)(8) of the Internal Revenue Code of 1986 and is exempt from taxation under section 501(a) of such Act;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>is affiliated with, carries out the tenets of, and shares a religious bond with, a church or convention or association of churches or an affiliated group of churches;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>offers, in addition to a Medicare+Choice religious fraternal benefit society plan, health coverage to individuals not entitled to benefits under this title who are members of such church, convention, or group; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>does not impose any limitation on membership in the society based on any health status-related factor.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Payment adjustment</inline>.—</heading><content>Under regulations of the Secretary, in the case of individuals enrolled under this part under a Medicare+Choice religious fraternal benefit society plan described in paragraph (2), the Secretary shall provide for such adjustment to the payment amounts otherwise established under section 1854 as may be appropriate to assure an appropriate payment level, taking into account the actuarial characteristics and experience of such individuals.”.<page identifier="/us/stat/111/328">111 STAT. 328</page></content></paragraph> </subsection> </section> </level> </part> </quotedContent> </content></section> <section> <num value="4002">SEC. 4002.</num> <heading>TRANSITIONAL RULES FOR CURRENT MEDICARE HMO PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Authorizing Transitional Waiver of 50:50 Rule</inline>.—</heading><chapeau>Section 1876(f) (42 U.S.C. 1395mm(f)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in paragraph (1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>Each</quotedText>” and inserting “<quotedText>For contract periods beginning before January 1, 1999, each</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking “<quotedText>or under a State plan approved under title XIX</quotedText>”;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in paragraph (2), by striking “<quotedText>The Secretary</quotedText>” and inserting “<quotedText>Subject to paragraph (4), the Secretary</quotedText>”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> <content>Effective for contract periods beginning after December 31, 1996, the Secretary may waive or modify the requirement imposed by paragraph (1) to the extent the Secretary finds that it is in the public interest.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Transition</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Risk-sharing contracts</inline>.—</heading><content>Section 1876 (42 U.S.C. 1395mm) is amended by adding at the end the following new subsections: <quotedContent> <subsection class="indent0 fontsize10"> <num value="k">“(k)</num><paragraph class="inline"><num value="1">(1)</num> <chapeau>Except as provided in paragraph (2)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>on or after the date standards for Medicare+Choice organizations and plans are first established under section 1856(b)(1), the Secretary shall not enter into any risk-sharing contract under this section with an eligible organization; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>for any contract year beginning on or after January 1, 1999, the Secretary shall not renew any such contract.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2)</num> <content>An individual who is enrolled in part B only and is enrolled in an eligible organization with a risk-sharing contract under this section on December 31, 1998, may continue enrollment in such organization in accordance with regulations described in section 1856(b)(1).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3)</num> <chapeau>Notwithstanding subsection (a), the Secretary shall provide that payment amounts under risk-sharing contracts under this section for months in a year (beginning with January 1998) shall be computed—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>with respect to individuals entitled to benefits under both parts A and B, by substituting payment rates under section 1853(a) for the payment rates otherwise established under section 1876(a), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>with respect to individuals only entitled to benefits under part B, by substituting an appropriate proportion of such rates (reflecting the relative proportion of payments under this title attributable to such part) for the payment rates otherwise established under subsection (a).</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="4">“(4)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> <chapeau>The following requirements shall apply to eligible organizations with risk-sharing contracts under this section in the same manner as they apply to Medicare+Choice organizations under part C:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Data collection requirements under section 1853(a)(3)(B).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Restrictions on imposition of premium taxes under section 1854(g) in relating to payments to such organizations under this section.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>The requirement to accept enrollment of new enrollees during November 1998 under section 1851(e)(6).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>Payments under section 1857(e)(2).”.<page identifier="/us/stat/111/329">111 STAT. 329</page></content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Reasonable cost contracts</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">Phase out of contracts</inline>.—</heading><content>Section 1876(h) (42 U.S.C. 1395mm(h)) is amended by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num><subparagraph class="inline"><num value="A">(A)</num> <content>After the date of the enactment of this paragraph, the Secretary may not enter into a reasonable cost reimbursement contract under this subsection (if the contract is not in effect as of such date), except for a contract with an eligible organization which, immediately previous to entering into such contract, had an agreement in effect under section 1833(a)(1)(A).</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B)</num> <content>The Secretary may not extend or renew a reasonable cost reimbursement contract under this subsection for any period beyond December 31, 2002.”.</content></subparagraph> </paragraph> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Report on impact</inline>.—</heading><content>By not later than January<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395mm">42 USC 1395mm note</ref>.</p></sidenote> 1, 2001, the Secretary of Health and Human Services shall submit to Congress a report that analyzes the potential impact of termination of reasonable cost reimbursement contracts, pursuant to the amendment made by subparagraph (A), on medicare beneficiaries enrolled under such contracts and on the medicare program. The report shall include such recommendations regarding any extension or transition with respect to such contracts as the Secretary deems appropriate.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Enrollment Transition Rule</inline>.—</heading><content>An individual who is<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395w–21">42 USC 1395w–21 note</ref>.</p></sidenote> enrolled on December 31, 1998, with an eligible organization under section 1876 of the Social Security Act (42 U.S.C. 1395mm) shall be considered to be enrolled with that organization on January 1, 1999, under part C of title XVIII of such Act if that organization has a contract under that part for providing services on January 1, 1999 (unless the individual has disenrolled effective on that date).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Advance Directives</inline>.—</heading><chapeau>Section 1866(f) (42 U.S.C. 1395cc(f)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in paragraph (1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by inserting “<quotedText>1855(i),</quotedText>” after “1833(e),”, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by inserting “<quotedText>, Medicare+Choice organization,</quotedText>” after “provider of services”; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in paragraph (2)(E), by inserting “<quotedText>or a Medicare+Choice organization</quotedText>” after “section 1833(a)(1)(A)”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Extension of Provider Requirement</inline>.—</heading><chapeau>Section 1866(a)(1)(O) (42 U.S.C. 1395cc(a)(1)(O)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>in the case of hospitals and skilled nursing facilities</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<quotedText>inpatient hospital and extended care</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by inserting “<quotedText>with a Medicare+Choice organization under part C or</quotedText>” after “any individual enrolled”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>by striking “<quotedText>(in the case of hospitals) or limits (in the case of skilled nursing facilities)</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>by inserting “<quotedText>(less any payments under sections 1886(d)(11) and 1886(h)(3)(D))</quotedText>” after “under this title”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Additional Conforming Changes</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Conforming references to previous part c</inline>.—</heading><content>Any<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC note prec. 1395x</ref>.</p></sidenote> reference in law (in effect before the date of the enactment of this Act) to part C of title XVIII of the Social Security Act is deemed a reference to part D of such title (as in effect after such date).<page identifier="/us/stat/111/330">111 STAT. 330</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395w–21">42 USC 1395w–21 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Secretarial submission of legislative proposal</inline>.—</heading><content>Not later than 6 months after the date of the enactment of this Act, the Secretary of Health and Human Services shall submit to the appropriate committees of Congress a legislative proposal providing for such technical and conforming amendments in the law as are required by the provisions of this chapter.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395w–27">42 USC 1395w–27 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Immediate Effective Date for Certain Requirements for Demonstrations</inline>.—</heading><content>Section 1857(e)(2) of the Social Security Act (requiring contribution to certain costs related to the enrollment process comparative materials) applies to demonstrations with respect to which enrollment is effected or coordinated under section 1851 of such Act.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395mm">42 USC 1395mm note</ref>.</p></sidenote> <heading><inline class="smallCaps">Transition Rule for PSO Enrollment</inline>.—</heading><content>In applying subsection (g)(1) of section 1876 of the Social Security Act (42 U.S.C. 1395mm) to a risk-sharing contract entered into with an eligible organization that is a provider-sponsored organization (as denned in section 1855(d)(1) of such Act, as inserted by section 5001) for a contract year beginning on or after January 1, 1998, there shall be substituted for the minimum number of enrollees provided under such section the minimum number of enrollees permitted under section 1857(b)(1) of such Act (as so inserted).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="i">(i)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395w–23">42 USC 1395w–23 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Publication of New Capitation Rates</inline>.—</heading><content>Not later than 4 weeks after the date of the enactment of this Act, the Secretary of Health and Human Services shall announce the annual Medicare+Choice capitation rates for 1998 under section 1853(b) of the Social Security Act.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="j">(j)</num> <heading><inline class="smallCaps">Elimination of Health Care Prepayment Plan Option for Entities Eligible to Participate as Managed Care Organization</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Elimination of option</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 1833(a)(1)(A) (42 U.S.C. 13951(a)(1)(A)) is amended by inserting “<quotedText>(and either is sponsored by a union or employer, or does not provide, or arrange for the provision of, any inpatient hospital services)</quotedText>” after “prepayment basis”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395l">42 USC 1395<i>l</i> note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendment made by subparagraph (A) applies to new contracts entered into after the date of enactment of this Act and, with respect to contracts in effect as of such date, shall apply to payment for services furnished after December 31, 1998.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> <heading><inline class="smallCaps">Medigap conforming amendment</inline>.—</heading><content>Effective January 1, 1999, section 1882(g)(1) (42 U.S.C. 1395ss(g)(D) is amended by striking “<quotedText>, during the period beginning on the date specified in subsection (p)(1)(C) and ending on December 31, 1995,</quotedText>”.</content></paragraph> </subsection> </section> <section> <num value="4003">SEC. 4003.</num> <heading>CONFORMING CHANGES IN MEDIGAP PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Conforming Amendments to Medicare+Choice Changes</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Section 1882(d)(3)(A)(i) (42 U.S.C. 1395ss(d)(3)(A)(i)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in the matter before subclause (I), by inserting “<quotedText>(including an individual electing a Medicare+Choice plan under section 1851)</quotedText>” after “of this title”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>in subclause (II)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by inserting “<quotedText>in the case of an individual not electing a Medicare+Choice plan</quotedText>” after “(II)”, and<page identifier="/us/stat/111/331">111 STAT. 331</page></content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by inserting before the comma at the end the following: “or in the case of an individual electing a Medicare+Choice plan, a medicare supplemental policy with knowledge that the policy duplicates health benefits to which the individual is otherwise entitled under the Medicare+Choice plan or under another medicare supplemental policy”.</content></clause> </subparagraph> </paragraph> <subparagraph class="indent2 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading><content>Section 1882(d)(3)(B)(i)(I) (42 U.S.C. 1395ss(d)(3)(B)(i)(I)) is amended by inserting “<quotedText>(including any Medicare+Choice plan)</quotedText>” after “health insurance policies”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Medicare+choice plans not treated as medicare supplementary policies</inline>.—</heading><content>Section 1882(g)(1) (42 U.S.C. 1395ss(g)(1)) is amended by inserting “<quotedText>or a Medicare+Choice plan or</quotedText>” after “does not include”.</content></subparagraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Additional Rules Relating to Individuals Enrolled in MSA Plans and Private Fee-For-Service Plans</inline>.—</heading><content>Section 1882 (42 U.S.C. 1395ss) is further amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="u">“(u)</num><paragraph class="inline"><num value="1">(1)</num> <content>It is unlawful for a person to sell or issue a policy described in paragraph (2) to an individual with knowledge that the individual has in effect under section 1851 an election of an MSA plan or a Medicare+Choice private fee-for-service plan.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2)</num><subparagraph class="inline"><num value="A">(A)</num> <content>A policy described in this subparagraph is a health insurance policy (other than a policy described in subparagraph (B)) that provides for coverage of expenses that are otherwise required to be counted toward meeting the annual deductible amount provided under the MSA plan.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B)</num> <chapeau>A policy described in this subparagraph is any of the following:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>A policy that provides coverage (whether through insurance or otherwise) for accidents, disability, dental care, vision care, or long-term care.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>A policy of insurance to which substantially all of the coverage relates to—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>liabilities incurred under workers’ compensation laws,</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>tort liabilities,</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>liabilities relating to ownership or use of property, or</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>such other similar liabilities as the Secretary may specify by regulations.</content></subclause> </clause> <clause class="indent0 fontsize10"><num value="iii">“(iii)</num> <content>A policy of insurance that provides coverage for a specified disease or illness.</content></clause> <clause class="indent0 fontsize10"><num value="iv">“(iv)</num> <content>A policy of insurance that pays a fixed amount per day (or other period) of hospitalization.”.</content></clause> </subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> </section> </subchapter> <subchapter> <num value="B">Subchapter B—</num><heading>Special Rules for Medicare+Choice Medical Savings Accounts</heading> <section> <num value="4006">SEC. 4006.</num> <heading>MEDICARE+CHOICE MSA.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 (relating to amounts specifically excluded from gross income) is amended by redesignating section 138 as section 139 and by inserting after section 137 the following<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s138">26 USC 138, 139</ref>.</p></sidenote> new section:<page identifier="/us/stat/111/332">111 STAT. 332</page> <quotedContent> <section> <num value="138">“SEC. 138.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s138">26 USC 138</ref>.</p></sidenote> <heading>MEDICARE+CHOICE MSA.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Exclusion</inline>.—</heading><content>Gross income shall not include any payment to the Medicare+Choice MSA of an individual by the Secretary of Health and Human Services under part C of title XVIII of the Social Security Act.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Medicare+Choice MSA</inline>.—</heading><chapeau>For purposes of this section, the term ‘Medicare+Choice MSA’ means a medical savings account (as defined in section 220(d))—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>which is designated as a Medicare+Choice MSA,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <chapeau>with respect to which no contribution may be made other than—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>a contribution made by the Secretary of Health and Human Services pursuant to part C of title XVIII of the Social Security Act, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>a trustee-to-trustee transfer described in subsection (c)(4).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>the governing instrument of which provides that trustee-to-trustee transfers described in subsection (c)(4) may be made to and from such account, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>which is established in connection with an MSA plan described in section 1859(b)(3) of the Social Security Act.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Special Rules for Distributions</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Distributions for qualified medical expenses</inline>.—</heading><chapeau>In applying section 220 to a Medicare+Choice MSA—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>qualified medical expenses shall not include amounts paid for medical care for any individual other than the account holder, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>section 220(d)(2)(C) shall not apply.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Penalty for distributions from medicare+choice msa not used for qualified medical expenses if minimum balance not maintained</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The tax imposed by this chapter for any taxable year in which there is a payment or distribution from a Medicare+Choice MSA which is not used exclusively to pay the qualified medical expenses of the account holder shall be increased by 50 percent of the excess (if any) of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the amount of such payment or distribution, over</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>the excess (if any) of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the fair market value of the assets in such MSA as of the close of the calendar year preceding the calendar year in which the taxable year begins, over</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>an amount equal to 60 percent of the deductible under the Medicare+Choice MSA plan covering the account holder as of January 1 of the calendar year in which the taxable year begins.</content></subclause> </clause> <continuation class="indent0 firstIndent0 fontsize10">Section 220(f)(4) shall not apply to any payment or distribution from a Medicare+Choice MSA.</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Exceptions</inline>.—</heading><chapeau>Subparagraph (A) shall not apply if the payment or distribution is made on or after the date the account holder—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>becomes disabled within the meaning of section 72(m)(7), or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>dies.<page identifier="/us/stat/111/333">111 STAT. 333</page></content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Special rules</inline>.—</heading><chapeau>For purposes of subparagraph (A)—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>all Medicare+Choice MSAs of the account holder shall be treated as 1 account,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>all payments and distributions not used exclusively to pay the qualified medical expenses of the account holder during any taxable year shall be treated as 1 distribution, and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>any distribution of property shall be taken into account at its fair market value on the date of the distribution.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Withdrawal of erroneous contributions</inline>.—</heading><content>Section 220(f)(2) and paragraph (2) of this subsection shall not apply to any payment or distribution from a Medicare+Choice MSA to the Secretary of Health and Human Services of an erroneous contribution to such MSA and of the net income attributable to such contribution.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Trustee-to-trustee transfers</inline>.—</heading><content>Section 220(f)(2) and paragraph (2) of this subsection shall not apply to any trustee-to-trustee transfer from a Medicare+Choice MSA of an account holder to another Medicare+Choice MSA of such account holder.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Special Rules for Treatment of Account After Death of Account Holder</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote><content>In applying section 220(f)(8)(A) to an account which was a Medicare+Choice MSA of a decedent, the rules of section 220(f) shall apply in lieu of the rules of subsection (c) of this section with respect to the spouse as the account holder of such Medicare+Choice MSA.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Reports</inline>.—</heading><chapeau>In the case of a Medicare+Choice MSA the report under section 220(h)—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>shall include the fair market value of the assets in such Medicare+Choice MSA as of the close of each calendar year, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <chapeau>shall be furnished to the account holder—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>not later than January 31 of the calendar year following the calendar year to which such reports relate, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>in such manner as the Secretary prescribes in such regulations.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Coordination With Limitation on Number of Taxpayers Having Medical Savings Accounts</inline>.—</heading><content>Subsection (i) of section 220 shall not apply to an individual with respect to a Medicare+Choice MSA, and Medicare+Choice MSA’s shall not be taken into account in determining whether the numerical limitations under section 220(j) are exceeded.”.</content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Technical Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>The last sentence of section 4973(d) of such Code is<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4973">26 USC 4973</ref>.</p></sidenote> amended by inserting “<quotedText>or section 138(c)(3)</quotedText>” after “section 220(1)(3)”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Subsection (b) of section 220 of such Code is amended<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s220">26 USC 220</ref>.</p></sidenote> by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Medicare eligible individuals</inline>.—</heading><content>The limitation under this subsection for any month with respect to an individual shall be zero for the first month such individual is entitled to benefits under title XVIII of the Social Security Act and for each month thereafter.”.<page identifier="/us/stat/111/334">111 STAT. 334</page></content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>The table of sections for part III of subchapter B of chapter 1 of such Code is amended by striking the last item and inserting the following: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 138.</designator> <label>Medicare+Choice MSA.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 139.</designator> <label>Cross references to other Acts.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s138">26 USC 138 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to taxable years beginning after December 31, 1998.</content> </subsection> </section> </subchapter> </chapter> <chapter> <num value="2">CHAPTER 2—</num><heading>DEMONSTRATIONS</heading> <subchapter> <num value="A">Subchapter A—</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395w–23">42 USC 1395w–23 note</ref>.</p></sidenote><heading>Medicare+Choice Competitive Pricing Demonstration Project</heading> <section> <num value="4011">SEC. 4011.</num> <heading>MEDICARE PREPAID COMPETITIVE PRICING DEMONSTRATION PROJECT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Establishment of Project</inline>.—</heading><content>The Secretary of Health and Human Services (in this subchapter referred to as the “Secretary”) shall establish a demonstration project (in this subchapter referred to as the “project”) under which payments to Medicare+Choice organizations in medicare payment areas in which the project is being conducted are determined in accordance with a competitive pricing methodology established under this subchapter.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Designation of 7 Medicare Payment Areas Covered by Project</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall designate, in accordance with the recommendations of the Competitive Pricing Advisory Committee under paragraphs (2) and (3), medicare payment areas as areas in which the project under this subchapter will be conducted. In this section, the term “Competitive Pricing Advisory Committee” means the Competitive Pricing Advisory Committee established under section 4012(a).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Initial designation of 4 areas</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Competitive Pricing Advisory Committee shall recommend to the Secretary, consistent with subparagraph (B), the designation of 4 specific areas as medicare payment areas to be included in the project. Such recommendations shall be made in a manner so as to ensure that payments under the project in 2 such areas will begin on January 1, 1999, and in 2 such areas will begin on January 1, 2000.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Urban and rural areas.</p></sidenote> <heading><inline class="smallCaps">Location of designation</inline>.—</heading><content>Of the 4 areas recommended under subparagraph (A), 3 shall be in urban areas and 1 shall be in a rural area.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Designation of additional 3 areas</inline>.—</heading><content>Not later than December 31, 2001, the Competitive Pricing Advisory Committee may recommend to the Secretary the designation of up to 3 additional, specific medicare payment areas to be included in the project.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Project Implementation</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Subject to paragraph (2), the Secretary shall for each medicare payment area designated under subsection (b)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <chapeau>in accordance with the recommendations of the Competitive Pricing Advisory Committee—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>establish the benefit design among plans offered in such area, and<page identifier="/us/stat/111/335">111 STAT. 335</page></content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>structure the method for selecting plans offered in such area; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>in consultation with such Committee—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>establish methods for setting the price to be paid to plans, including, if the Secretaries determines appropriate, the rewarding and penalizing of Medicare+Choice plans in the area on the basis of the attainment of, or failure to attain, applicable quality standards, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>provide for the collection of plan information (including information concerning quality and access to care), the dissemination of information, and the methods of evaluating the results of the project.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Consultation</inline>.—</heading><content>The Secretary shall take into account the recommendations of the area advisory committee established in section 4012(b), in implementing a project design for any area, except that no modifications may be made in the project design without consultation with the Competitive Pricing Advisory Committee. In no case may the Secretary change the designation of an area based on recommendations of any area advisory committee.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Monitoring and Report</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Monitoring impact</inline>.—</heading><content>Taking into consideration the recommendations of the Competitive Pricing Advisory Committee and the area advisory committees, the Secretary shall closely monitor and measure the impact of the project in the different areas on the price and quality of, and access to, medicare covered services, choice of health plans, changes in enrollment, and other relevant factors.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than December 31, 2002, the Secretary shall submit to Congress a report on the progress under the project under this subchapter, including a comparison of the matters monitored under paragraph (1) among the different designated areas. The report may include any legislative recommendations for extending the project to the entire medicare population.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Waiver Authority</inline>.—</heading><content>The Secretary of Health and Human Services may waive such requirements of title XVIII of the Social Security Act (as amended by this Act) as may be necessary for the purposes of carrying out the project.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Relationship to Other Authority</inline>.—</heading><content>Except pursuant to this subchapter, the Secretary of Health and Human Services may not conduct or continue any medicare demonstration project relating to payment of health maintenance organizations, Medicare+Choice organizations, or similar prepaid managed care entities on the basis of a competitive bidding process or pricing system described in subsection (a).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g)</num> <heading><inline class="smallCaps">No Additional Costs to Medicare Program</inline>.—</heading><content>The aggregate payments to Medicare+Choice organizations under the project for any designated area for a fiscal year may not exceed the aggregate payments to such organizations that would have been made under title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.), as amended by section 4001, if the project had not been conducted.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><content>Any term used in this subchapter which is also used in part C of title XVIII of the Social Security Act, <page identifier="/us/stat/111/336">111 STAT. 336</page>as amended by section 4001, shall have the same meaning as when used in such part.</content> </subsection> </section> <section> <num value="4012">SEC. 4012.</num> <heading>ADVISORY COMMITTEES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Competitive Pricing Advisory Committee</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Before implementing the project under this subchapter, the Secretary shall appoint the Competitive Pricing Advisory Committee, including independent actuaries, individuals with expertise in competitive health plan pricing, and an employee of the Office of Personnel Management with expertise in the administration of the Federal Employees Health Benefit Program, to make recommendations to the Secretary concerning the designation of areas for inclusion in the project and appropriate research design for implementing the project.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Initial recommendations</inline>—</heading><content>The Competitive Pricing Advisory Committee initially shall submit recommendations regarding the area selection, benefit design among plans offered, structuring choice among health plans offered, methods for setting the price to be paid to plans, collection of plan information (including information concerning quality and access to care), information dissemination, and methods of evaluating the results of the project.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Quality recommendation</inline>.—</heading><content>The Competitive Pricing Advisory Committee shall study and make recommendations regarding the feasibility of providing financial incentives and penalties to plans operating under the project that meet, or fail to meet, applicable quality standards.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Advice during implementation</inline>.—</heading><content>Upon implementation of the project, the Competitive Pricing Advisory Committee shall continue to advise the Secretary on the application of the design in different areas and changes in the project based on experience with its operations.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <heading><inline class="smallCaps">Sunset</inline>.—</heading><content>The Competitive Pricing Advisory Committee shall terminate on December 31, 2004.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Appointment of Area Advisory Committee</inline>.—</heading><content>Upon the designation of an area for inclusion in the project, the Secretary shall appoint an area advisory committee, composed of representatives of health plans, providers, and medicare beneficiaries in the area, to advise the Secretary concerning how the project will be implemented in the area. Such advice may include advice concerning the marketing and pricing of plans in the area and other salient factors. The duration of such a committee for an area shall be for the duration of the operation of the project in the area.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Special Application</inline>.—</heading><content>Notwithstanding section 9(c) of the Federal Advisory Committee Act (5 U.S.C. App.), the Competitive Pricing Advisory Commission and any area advisory committee (described in subsection (b)) may meet as soon as the members of the commission or committee, respectively, are appointed.</content> </subsection> </section> </subchapter> <subchapter> <num value="B">Subchapter B—</num><heading>Social Health Maintenance Organizations</heading> <section> <num value="4014">SEC. 4014.</num> <heading>SOCIAL HEALTH MAINTENANCE ORGANIZATIONS (SHMOS).</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Extension of Demonstration Project Authorities</inline>.—</heading><chapeau><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/101/1330–65">101 Stat. 1330–65</ref>.</p></sidenote>Section 4018(b) of the Omnibus Budget Reconciliation Act of 1987 is amended—<page identifier="/us/stat/111/337">111 STAT. 337</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in paragraph (1), by striking “<quotedText>1997</quotedText>” and inserting “<quotedText>2000</quotedText>”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in paragraph (4), by striking “<quotedText>1998</quotedText>” and inserting “<quotedText>2001</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Expansion of Cap</inline>.—</heading><content>Section 13567(c) of the Omnibus Budget Reconciliation Act of 1993 is amended by striking “<quotedText>12,000</quotedText>”<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/107/608">107 Stat. 608</ref>.</p></sidenote> and inserting “<quotedText>36,000</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Report on Integration and Transition</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395w–21">42 USC 1395w–21 note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary of Health and Human Services shall submit to Congress, by not later than January 1, 1999, a plan for the integration of health plans offered by social health maintenance organizations (including SHMO I and SHMO II sites developed under section 2355 of the Deficit Reduction Act of 1984 and under the amendment made by section 4207(b)(3)(B)(i) of OBRA–1990, respectively) and similar plans as an option under the Medicare+Choice program under part C of title XVIII of the Social Security Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Provision for transition</inline>.—</heading><content>Such plan shall include a transition for social health maintenance organizations operating under demonstration project authority under such section.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Payment policy</inline>.—</heading><content>The report shall also include recommendations on appropriate payment levels for plans offered by such organizations, including an analysis of the application of risk adjustment factors appropriate to the population served by such organizations.</content></paragraph> </subsection> </section> </subchapter> <subchapter> <num value="C">Subchapter C—</num><heading>Medicare Subvention Demonstration Project for Military Retirees</heading> <section> <num value="4015">SEC. 4015.</num> <heading>MEDICARE SUBVENTION DEMONSTRATION PROJECT FOR MILITARY RETIREES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Title XVIII (42 U.S.C. 1395 et seq.) (as amended by sections 4603 and 4801) is amended by adding at the end the following: <quotedContent> <level> <heading class="centered">“<inline class="smallCaps">medicare subvention demonstration project for military retirees</inline></heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395ggg">42 USC 1395ggg</ref>.</p></sidenote> <section> <num value="1896">“<inline class="smallCaps">Sec</inline>. 1896.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>In this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Administering secretaries</inline>.—</heading><content>The term ‘administering Secretaries’ means the Secretary and the Secretary of Defense acting jointly.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Demonstration project; project</inline>.—</heading><content>The terms ‘demonstration project’ and ‘project’ mean the demonstration project carried out under this section.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Designated provider</inline>.—</heading><content>The term ‘designated provider’ has the meaning given that term in section 721(5) of the National Defense Authorization Act For Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2593; 10 U.S.C. 1073 note).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Medicare-eligible military retiree or dependent</inline>.—</heading><chapeau>The term ‘medicare-eligible military retiree or dependent’ means an individual described in section 1074(b) or 1076(b) of title 10, United States Code, who—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>would be eligible for health benefits under section 1086 of such title by reason of subsection (c)(1) of such section 1086 but for the operation of subsection (d) of such section 1086;<page identifier="/us/stat/111/338">111 STAT. 338</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num><clause class="inline"><num value="i">(i)</num> <content>is entitled to benefits under part A of this title; and</content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii)</num> <content>if the individual was entitled to such benefits before July 1, 1997, received health care items or services from a health care facility of the uniformed services before that date, but after becoming entitled to benefits under part A of this title;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>is enrolled for benefits under part B of this title; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>has attained age 65.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Medicare health care services</inline>.—</heading><content>The term ‘medicare health care services’ means items or services covered under part A or B of this title.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Military treatment facility</inline>.—</heading><content>The term ‘military treatment facility’ means a facility referred to in section 1074(a) of title 10, United States Code.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Tricare</inline>.—</heading><content>The term TRICARE’ has the same meaning as the term TRICARE program’ under section 711 of the National Defense Authorization Act for Fiscal Year 1996 (10 U.S.C. 1073 note).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <heading><inline class="smallCaps">Trust funds</inline>.—</heading><content>The term ‘trust funds’ means the Federal Hospital Insurance Trust Fund established in section 1817 and the Federal Supplementary Medical Insurance Trust Fund established in section 1841.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Demonstration Project</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Establishment</inline>.—</heading><content>The administering Secretaries are authorized to establish a demonstration project (under an agreement entered into by the administering Secretaries) under which the Secretary shall reimburse the Secretary of Defense, from the trust funds, for medicare health care services furnished to certain medicare-eligible military retirees or dependents in a military treatment facility or by a designated provider.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Agreement</inline>.—</heading><chapeau>The agreement entered into under subparagraph (A) shall include at a minimum—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>a description of the benefits to be provided to the participants of the demonstration project established under this section;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>a description of the eligibility rules for participation in the demonstration project, including any cost sharing requirements;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>a description of how the demonstration project will satisfy the requirements under this title;</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>a description of the sites selected under paragraph (2);</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>a description of how reimbursement requirements under subsection (i) and maintenance of effort requirements under subsection (j) will be implemented in the demonstration project;</content></clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <content>a statement that the Secretary shall have access to all data of the Department of Defense that the Secretary determines is necessary to conduct independent estimates and audits of the maintenance of effort requirement, the annual reconciliation, and related matters required under the demonstration project;<page identifier="/us/stat/111/339">111 STAT. 339</page></content></clause> <clause class="indent3 fontsize10"><num value="vii">“(vii)</num> <content>a description of any requirement that the Secretary waives pursuant to subsection (d); and</content></clause> <clause class="indent3 fontsize10"><num value="viii">“(viii)</num> <chapeau>a certification, provided after review by the administering Secretaries, that any entity that is receiving payments by reason of the demonstration project has sufficient—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>resources and expertise to provide, consistent with payments under subsection (i), the full range of benefits required to be provided to beneficiaries under the project; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>information and billing systems in place to ensure the accurate and timely submission of claims for benefits and to ensure that providers of services, physicians, and other health care professionals are reimbursed by the entity in a timely and accurate manner.</content></subclause> </clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Number of sites</inline>.—</heading><content>The project established under this section shall be conducted in no more than 6 sites, designated jointly by the administering Secretaries after review of all TRICARE regions.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Restriction</inline>.—</heading><content>No new military treatment facilities will be built or expanded with funds from the demonstration project.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Duration</inline>.—</heading><content>The administering Secretaries shall conduct the demonstration project during the 3-year period beginning on January 1, 1998.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Report</inline>.—</heading><content>At least 60 days prior to the commencement of the demonstration project, the administering Secretaries shall submit a copy of the agreement entered into under paragraph (1) to the committees of jurisdiction under this title.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Crediting of Payments</inline>.—</heading><content>A payment received by the Secretary of Defense under the demonstration project shall be credited to the applicable Department of Defense medical appropriation (and within that appropriation). Any such payment received during a fiscal year for services provided during a prior fiscal year may be obligated by the Secretary of Defense during the fiscal year during which the payment is received.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Waiver of Certain Medicare Requirements</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Authority</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided under subparagraph (B), the demonstration project shall meet all requirements of Medicare+Choice plans under part C of this title and regulations pertaining thereto, and other requirements for receiving medicare payments, except that the prohibition of payments to Federal providers of services under sections 1814(c) and 1835(d), and paragraphs (2) and (3) of section 1862(a) shall not apply.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Waiver</inline>.—</heading><chapeau>Except as provided in paragraph (2), the Secretary is authorized to waive any requirement described under subparagraph (A), or approve equivalent or alternative ways of meeting such a requirement, but only if such waiver or approval—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>reflects the unique status of the Department of Defense as an agency of the Federal Government; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>is necessary to carry out the demonstration project.<page identifier="/us/stat/111/340">111 STAT. 340</page></content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Beneficiary protections and other matters</inline>.—</heading><chapeau>The demonstration project shall comply with the requirements of part C of this title that relate to beneficiary protections and other matters, including such requirements relating to the following areas:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Enrollment and disenrollment.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Nondiscrimination.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>Information provided to beneficiaries.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>Cost-sharing limitations.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>Appeal and grievance procedures.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>Provider participation.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <content>Access to services.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num> <content>Quality assurance and external review.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="I">“(I)</num> <content>Advance directives.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="J">“(J)</num> <content>Other areas of beneficiary protections that the Secretary determines are applicable to such project.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Inspector General</inline>.—</heading><content>Nothing in the agreement entered into under subsection (b) shall limit the Inspector General of the Department of Health and Human Services from investigating any matters regarding the expenditure of funds under this title for the demonstration project, including compliance with the provisions of this title and all other relevant laws.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Voluntary Participation</inline>.—</heading><content>Participation of medicare-eligible military retirees or dependents in the demonstration project shall be voluntary.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Tricare Health Care Plans</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Modification of tricare contracts</inline>.—</heading><content>In carrying out the demonstration project, the Secretary of Defense is authorized to amend existing TRICARE contracts (including contracts with designated providers) in order to provide the medicare health care services to the medicare-eligible military retirees and dependents enrolled in the demonstration project consistent with part C of this title.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Health care benefits</inline>.—</heading><content>The administering Secretaries shall prescribe the minimum health care benefits to be provided under such a plan to medicare-eligible military retirees or dependents enrolled in the plan. Those benefits shall include at least all medicare health care services covered under this title.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Additional Plans</inline>.—</heading><content>Notwithstanding any provisions of title 10, United States Code, the administering Secretaries may agree to include in the demonstration project any of the Medicare+Choice plans described in section 1851(a)(2)(A), and such agreement may include an agreement between the Secretary of Defense and the Medicare+Choice organization offering such plan to provide medicare health care services to medicare-eligible military retirees or dependents and for such Secretary to receive payments from such organization for the provision of such services.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="i">“(i)</num> <heading><inline class="smallCaps">Payments Based on Regular Medicare Payment Rates</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subject to the succeeding provisions of this subsection, the Secretary shall reimburse the Secretary of Defense for services provided under the demonstration project at a rate equal to 95 percent of the amount paid to a Medicare+Choice organization under part C of this title with <sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote>respect to such an enrollee. In cases in which a payment amount may not otherwise be readily computed, the Secretary shall <page identifier="/us/stat/111/341">111 STAT. 341</page>establish rules for computing equivalent or comparable payment amounts.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Exclusion of certain amounts</inline>.—</heading><chapeau>In computing the amount of payment under paragraph (1), the following shall be excluded:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Special payments</inline>.—</heading><content>Any amount attributable to an adjustment under subparagraphs (B) and (F) of section 1886(d)(5) and subsection (h) of such section.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Percentage of capital payments</inline>.—</heading><content>An amount determined by the administering Secretaries for amounts attributable to payments for capital-related costs under subsection (g) of such section.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Periodic payments from medicare trust funds</inline>.—</heading><chapeau>Payments under this subsection shall be made—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>on a periodic basis consistent with the periodicity of payments under this title; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>in appropriate part, as determined by the Secretary, from the trust funds.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Cap on amount</inline>.—</heading><chapeau>The aggregate amount to be reimbursed under this subsection pursuant to the agreement entered into between the administering Secretaries under subsection (b) shall not exceed a total of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>$50,000,000 for calendar year 1998;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>$60,000,000 for calendar year 1999; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>$65,000,000 for calendar year 2000.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="j">“(j)</num> <heading><inline class="smallCaps">Maintenance of Effort</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Monitoring effect of demonstration program on costs to medicare program</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The administering Secretaries, in consultation with the Comptroller General, shall closely monitor the expenditures made under the medicare program for medicare-eligible military retirees or dependents during the period of the demonstration project compared to the expenditures that would have been made for such medicare-eligible military retirees or dependents during that period if the demonstration project had not been conducted. The agreement entered into by the administering Secretaries under subsection (b) shall require any participating military treatment facility to maintain the level of effort for space available care to medicare-eligible military retirees or dependents.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Annual report by the comptroller general</inline>.—</heading><content>Not later than December 31 of each year during which the demonstration project is conducted, the Comptroller General shall submit to the administering Secretaries and the appropriate committees of Congress a report on the extent, if any, to which the costs of the Secretary under the medicare program under this title increased during the preceding fiscal year as a result of the demonstration project.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Required response in case of increase in costs</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>If the administering Secretaries find, based on paragraph (1), that the expenditures under the medicare program under this title increased (or are expected to increase) during a fiscal year because of the demonstration project, the administering Secretaries shall take such steps as may be needed—<page identifier="/us/stat/111/342">111 STAT. 342</page></chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>to recoup for the medicare program the amount of such increase in expenditures; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>to prevent any such increase in the future.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Steps</inline>.—</heading><chapeau>Such steps—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>under subparagraph (A)(i) shall include payment of the amount of such increased expenditures by the Secretary of Defense from the current medical care appropriation of the Department of Defense to the trust funds; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>under subparagraph (A)(ii) shall include suspending or terminating the demonstration project (in whole or in part) or lowering the amount of payment under subsection (i)(1).</content></clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="k">“(k)</num> <heading><inline class="smallCaps">Evaluation and Reports</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Independent evaluation</inline>.—</heading><chapeau>The Comptroller General of the United States shall conduct an evaluation of the demonstration project, and shall submit annual reports on the demonstration project to the administering Secretaries and to the committees of jurisdiction in the Congress. The first report shall be submitted not later than 12 months after the date on which the demonstration project begins operation, and the final report not later than 3½ years after that date. The evaluation and reports shall include an assessment, based on the agreement entered into under subsection (b), of the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Any savings or costs to the medicare program under this title resulting from the demonstration project.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>The cost to the Department of Defense of providing care to medicare-eligible military retirees and dependents under the demonstration project.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>A description of the effects of the demonstration project on military treatment facility readiness and training and the probable effects of the project on overall Department of Defense medical readiness and training.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>Any impact of the demonstration project on access to care for active duty military personnel and their dependents.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>An analysis of how the demonstration project affects the overall accessibility of the uniformed services treatment system and the amount of space available for point-of-service care, and a description of the unintended effects (if any) upon the normal treatment priority system.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>Compliance by the Department of Defense with the requirements under this title.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <content>The number of medicare-eligible military retirees and dependents opting to participate in the demonstration project instead of receiving health benefits through another health insurance plan (including benefits under this title).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num> <content>A list of the health insurance plans and programs that were the primary payers for medicare-eligible military retirees and dependents during the year prior to their participation in the demonstration project and the distribution of their previous enrollment in such plans and programs.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="I">“(I)</num> <content>Any impact of the demonstration project on private health care providers and beneficiaries under this title that are not enrolled in the demonstration project.<page identifier="/us/stat/111/343">111 STAT. 343</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="J">“(J)</num> <content>An assessment of the access to care and quality of care for medicare-eligible military retirees and dependents under the demonstration project.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="K">“(K)</num> <content>An analysis of whether, and in what manner, easier access to the uniformed services treatment system affects the number of medicare-eligible military retirees and dependents receiving medicare health care services.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="L">“(L)</num> <content>Any impact of the demonstration project on the access to care for medicare-eligible military retirees and dependents who did not enroll in the demonstration project and for other individuals entitled to benefits under this title.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="M">“(M)</num> <content>A description of the difficulties (if any) experienced by the Department of Defense in managing the demonstration project and TRICARE contracts.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="N">“(N)</num> <content>Any additional elements specified in the agreement entered into under subsection (b).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="O">“(O)</num> <content>Any additional elements that the Comptroller General of the United States determines is appropriate to assess regarding the demonstration project.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Report on extension and expansion of demonstration project</inline>.—</heading><chapeau>Not later than 6 months after the date of the submission of the final report by the Comptroller General of the United States under paragraph (1), the administering Secretaries shall submit to Congress a report containing their recommendation as to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>whether there is a cost to the health care program under this title in conducting the demonstration project, and whether the demonstration project could be expanded without there being a cost to such health care program or to the Federal Government;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>whether to extend the demonstration project or make the project permanent; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>whether the terms and conditions of the project should be continued (or modified) if the project is extended or expanded.”.</content></subparagraph> </paragraph> </subsection> </section> </level> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Implementation Plan for Veterans Subvention</inline>.—</heading><content>Not<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395ggg">42 USC 1395ggg note</ref>.</p></sidenote> later than 12 months after the start of the demonstration project, note, the Secretary of Health and Human Services and the Secretary of Veterans Affairs shall jointly submit to Congress a detailed implementation plan for a subvention demonstration project (that follows the model of the demonstration project conducted under section 1896 of the Social Security Act (as added by subsection (a)) to begin in 1999 for veterans (as defined in section 101 of title 38, United States Code) that are eligible for benefits under title XVIII of the Social Security Act.</content> </subsection> </section> </subchapter> <subchapter> <num value="D">Subchapter D—</num><heading>Other Projects</heading> <section> <num value="4016">SEC. 4016.</num> <heading>MEDICARE COORDINATED CARE DEMONSTRATION PROJECT. </heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395b–1">42 USC 1395b–1 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Demonstration Projects</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The Secretary of Health and Human Services (in this section referred to as the “Secretary”) shall conduct demonstration projects for the purpose of evaluating methods, such as case management and other models of coordinated care, that—<page identifier="/us/stat/111/344">111 STAT. 344</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>improve the quality of items and services provided to target individuals; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>reduce expenditures under the medicare program under title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) for items and services provided to target individuals.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Target individual defined</inline>.—</heading><content>In this section, the term “target individual” means an individual that has a chronic illness, as defined and identified by the Secretary, and is enrolled under the fee-for-service program under parts A and B of title XVIII of the Social Security Act (42 U.S.C. 1395c et seq.; 1395j et seq.).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Program Design</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Initial design</inline>.—</heading><content>The Secretary shall evaluate best practices in the private sector of methods of coordinated care for a period of 1 year and design the demonstration project based on such evaluation.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Urban and rural areas.</p><p class="indent0 firstIndent0 fontsize8">District of Columbia.</p></sidenote> <heading><inline class="smallCaps">Number and project areas</inline>.—</heading><chapeau>Not later than 2 years after the date of enactment of this Act, the Secretary shall implement at least 9 demonstration projects, including—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>5 projects in urban areas;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>3 projects in rural areas; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>1 project within the District of Columbia which is operated by a nonprofit academic medical center that maintains a National Cancer Institute certified comprehensive cancer center.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Expansion of projects; implementation of demonstration project results</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">Expansion of projects</inline>.—</heading><chapeau>If the initial report under subsection (c) contains an evaluation that demonstration projects—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>reduce expenditures under the medicare program; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>do not increase expenditures under the medicare program and increase the quality of health care services provided to target individuals and satisfaction of beneficiaries and health care providers;</content></clause> <continuation class="indent0 fontsize10">the Secretary shall continue the existing demonstration projects and may expand the number of demonstration projects.</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Implementation of demonstration project results</inline>.—</heading><content>If a report under subsection (c) contains an evaluation as described in subparagraph (A), the Secretary may issue regulations to implement, on a permanent basis, the components of the demonstration project that are beneficial to the medicare program.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Report to Congress</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Not later than 2 years after the Secretary implements the initial demonstration projects under this section, and biannually thereafter, the Secretary shall submit to Congress a report regarding the demonstration projects conducted under this section.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Contents of report</inline>.—</heading><chapeau>The report in paragraph (1) shall include the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>A description of the demonstration projects conducted under this section.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>An evaluation of—<page identifier="/us/stat/111/345">111 STAT. 345</page></chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>the cost-effectiveness of the demonstration projects;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>the quality of the health care services provided to target individuals under the demonstration projects; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>beneficiary and health care provider satisfaction under the demonstration project.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>Any other information regarding the demonstration projects conducted under this section that the Secretary determines to be appropriate.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Waiver Authority</inline>.—</heading><content>The Secretary shall waive compliance with the requirements of title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) to such extent and for such period as the Secretary determines is necessary to conduct demonstration projects.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Funding</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Demonstration projects</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">(i)</num> <heading><inline class="smallCaps">State projects</inline>.—</heading><content>Except as provided in clause (ii), the Secretary shall provide for the transfer from the Federal Hospital Insurance Trust Fund and the Federal Supplementary Insurance Trust Fund under title XVIII of the Social Security Act (42 U.S.C. 1395i, 1395t), in such proportions as the Secretary determines to be appropriate, of such funds as are necessary for the costs of carrying out the demonstration projects under this section.</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <heading><inline class="smallCaps">Cancer hospital</inline>.—</heading><content>In the case of the project described in subsection (b)(2)(C), amounts shall be available only as provided in any Federal law making appropriations for the District of Columbia.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Limitation</inline>.—</heading><content>In conducting the demonstration project under this section, the Secretary shall ensure that the aggregate payments made by the Secretary do not exceed the amount which the Secretary would have paid if the demonstration projects under this section were not implemented.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Evaluation and report</inline>.—</heading><content>There are authorized to be appropriated such sums as are necessary for the purpose of developing and submitting the report to Congress under subsection (c).</content></paragraph> </subsection> </section> <section> <num value="4017">SEC. 4017.</num> <heading>ORDERLY TRANSITION OF MUNICIPAL HEALTH SERVICE DEMONSTRATION PROJECTS.</heading> <chapeau>Section 9215 of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended by section 6135 of OBRA–1989 and section 13557 of OBRA–1993, is further amended—<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395b–1">42 USC 1395b–1 note</ref>.</p></sidenote></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by inserting “<quotedText>(a)</quotedText>” before “The Secretary”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following: “Subject to subsection (c), the Secretary may further extend such demonstration projects through December 31, 2000, but only with respect to individuals who received at least one service during the period beginning on January 1, 1996, and ending on the date of the enactment of the Balanced Budget Act of 1997. <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <content>The Secretary shall work with each such demonstration project to develop a plan, to be submitted to the Committee on Ways and Means and the Committee on Commerce of the House <page identifier="/us/stat/111/346">111 STAT. 346</page>of Representatives and the Committee on Finance of the Senate by March 31, 1998, for the orderly transition of demonstration projects and the project participants to a non-demonstration project health care delivery system, such as through integration with a private or public health plan, including a medicaid managed care or Medicare+Choice plan.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <content>A demonstration project under subsection (a) which does not develop and submit a transition plan under subsection (b) by March 31, 1998, or, if later, 6 months after the date of the enactment of the Balanced Budget Act of 1997, shall be discontinued as of December 31, 1998. The Secretary shall provide appropriate technical assistance to assist in the transition so that disruption of medical services to project participants may be minimized.”.</content> </subsection> </quotedContent> </content></paragraph> </section> <section> <num value="4018">SEC. 4018.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395w–21">42 USC 1395w–21 note</ref>.</p></sidenote> <heading>MEDICARE ENROLLMENT DEMONSTRATION PROJECT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Demonstration Project</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Establishment</inline>.—</heading><content>The Secretary shall implement a demonstration project (in this section referred to as the “project”) for the purpose of evaluating the use of a third-party contractor to conduct the Medicare+Choice plan enrollment and disenrollment functions, as described in part C of title XVIII of the Social Security Act (as added by section 4001 of this Act), in an area.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Consultation</inline>.—</heading><chapeau>Before implementing the project under this section, the Secretary shall consult with affected parties on—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>the design of the project;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>the selection criteria for the third-party contractor; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>the establishment of performance standards, as described in paragraph (3).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Performance standards</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall establish performance standards for the accuracy and timeliness of the Medicare+Choice plan enrollment and disenrollment functions performed by the third-party contractor.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Noncompliance</inline>.—</heading><content>In the event that the third-party contractor is not in substantial compliance with the performance standards established under subparagraph (A), such enrollment and disenrollment functions shall be performed by the Medicare+Choice plan until the Secretary appoints a new third-party contractor.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Report to Congress</inline>.—</heading><content>The Secretary shall periodically report to Congress on the progress of the project conducted pursuant to this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Waiver Authority</inline>.—</heading><content>The Secretary shall waive compliance with the requirements of part C of title XVIII of the Social Security Act (as amended by section 4001 of this Act) to such extent and for such period as the Secretary determines is necessary to conduct the project.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Duration</inline>.—</heading><content>A demonstration project under this section shall be conducted for a 3-year period.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Separate From Other Demonstration Projects</inline>.—</heading><content>A project implemented by the Secretary under this section shall not be conducted in conjunction with any other demonstration project.<page identifier="/us/stat/111/347">111 STAT. 347</page></content> </subsection> </section> <section> <num value="4019">SEC. 4019.</num> <heading>EXTENSION OF CERTAIN MEDICARE COMMUNITY NURSING ORGANIZATION DEMONSTRATION PROJECTS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395mm">42 USC 1395mm note</ref>.</p></sidenote> <content>Notwithstanding any other provision of law, demonstration projects conducted under section 4079 of the Omnibus Budget Reconciliation Act of 1987 may be conducted for an additional period of 2 years, and the deadline for any report required relating to the results of such projects shall be not later than 6 months before the end of such additional period.</content> </section> </subchapter> </chapter> <chapter> <num value="3">CHAPTER 3—</num><heading>COMMISSIONS</heading> <section> <num value="4021">SEC. 4021.</num> <heading>NATIONAL BIPARTISAN COMMISSION ON THE FUTURE OF MEDICARE.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395b">42 USC 1395b note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Establishment</inline>.—</heading><content>There is established a commission to be known as the National Bipartisan Commission on the Future of Medicare (in this section referred to as the “Commission”).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Duties of the Commission</inline>.—</heading><chapeau>The Commission shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>review and analyze the long-term financial condition of the medicare program under title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>identify problems that threaten the financial integrity of the Federal Hospital Insurance Trust Fund and the Federal Supplementary Medical Insurance Trust Fund established under that title (42 U.S.C. 1395i, 1395t), including—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>the financial impact on the medicare program of the significant increase in the number of medicare eligible individuals which will occur beginning approximately during 2010 and lasting for approximately 25 years, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>the extent to which current medicare update indexes do not accurately reflect inflation;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>analyze potential solutions to the problems identified under paragraph (2) that will ensure both the financial integrity of the medicare program and the provision of appropriate benefits under such program, including methods used by other nations to respond to comparable demographic patterns in eligibility for health care benefits for elderly and disabled individuals and trends in employment-related health care for retirees;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>make recommendations to restore the solvency of the Federal Hospital Insurance Trust Fund and the financial integrity of the Federal Supplementary Medical Insurance Trust Fund;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>make recommendations for establishing the appropriate financial structure of the medicare program as a whole;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>make recommendations for establishing the appropriate balance of benefits covered and beneficiary contributions to the medicare program;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <content>make recommendations for the time periods during which the recommendations described in paragraphs (4), (5), and (6) should be implemented;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8)</num> <content>make recommendations regarding the financing of graduate medical education (GME), including consideration of alternative broad-based sources of funding for such education and funding for institutions not currently eligible for such GME support that conduct approved graduate medical residency programs, such as children’s hospitals;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9)</num> <content>make recommendations on modifying age-based eligibility to correspond to changes in age-based eligibility under <page identifier="/us/stat/111/348">111 STAT. 348</page>the OASDI program and on the feasibility of allowing individuals between the age of 62 and the medicare eligibility age to buy into the medicare program;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10)</num> <content>make recommendations on the impact of chronic disease and disability trends on future costs and quality of services under the current benefit, financing, and delivery system structure of the medicare program;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="11">(11)</num> <content>make recommendations regarding a comprehensive approach to preserve the program; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="12">(12)</num> <content>review and analyze such other matters as the Commission deems appropriate.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Membership</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Number and appointment</inline>.—</heading><chapeau>The Commission shall be composed of 17 members, of whom—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num><sidenote><p class="indent0 firstIndent0 fontsize8">President.</p></sidenote> <content>four shall be appointed by the President;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>six shall be appointed by the Majority Leader of the Senate, in consultation with the Minority Leader of the Senate, of whom not more than 4 shall be of the same political party;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>six shall be appointed by the Speaker of the House of Representatives, in consultation with the Minority Leader of the House of Representatives, of whom not more than 4 shall be of the same political party; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>one, who shall serve as Chairman of the Commission, appointed jointly by the President, Majority Leader of the Senate, and the Speaker of the House of Representatives.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Deadline for appointment</inline>.—</heading><content>Members of the Commission shall be appointed by not later than December 1, 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Terms of appointment</inline>.—</heading><content>The term of any appointment under paragraph (1) to the Commission shall be for the life of the Commission.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Meetings</inline>.—</heading><content>The Commission shall meet at the call of its Chairman or a majority of its members.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <heading><inline class="smallCaps">Quorum</inline>.—</heading><content>A quorum shall consist of 8 members of the Commission, except that 4 members may conduct a hearing under subsection (e).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <heading><inline class="smallCaps">Vacancies</inline>.—</heading><content>A vacancy on the Commission shall be filled in the same manner in which the original appointment was made not later than 30 days after the Commission is given notice of the vacancy and shall not affect the power of the remaining members to execute the duties of the Commission.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <heading><inline class="smallCaps">Compensation</inline>.—</heading><content>Members of the Commission shall receive no additional pay, allowances, or benefits by reason of their service on the Commission.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8)</num> <heading><inline class="smallCaps">Expenses</inline>.—</heading><content>Each member of the Commission shall receive travel expenses and per diem in lieu of subsistence in accordance with sections 5702 and 5703 of title 5, United States Code.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Staff and Support Services</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Executive director</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">Appointment</inline>.—</heading><content>The Chairman shall appoint an executive director of the Commission.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Compensation</inline>.—</heading><content>The executive director shall be paid the rate of basic pay for level V of the Executive Schedule.<page identifier="/us/stat/111/349">111 STAT. 349</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Staff</inline>.—</heading><content>With the approval of the Commission, the executive director may appoint such personnel as the executive director considers appropriate.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Applicability of civil service laws</inline>.—</heading><content>The staff of the Commission shall be appointed without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, and shall be paid without regard to the provisions of chapter 51 and subchapter III of chapter 53 of such title (relating to classification and General Schedule pay rates).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Experts and consultants</inline>.—</heading><content>With the approval of the Commission, the executive director may procure temporary and intermittent services under section 3109(b) of title 5, United States Code.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <heading><inline class="smallCaps">Physical facilities</inline>.—</heading><content>The Administrator of the General Services Administration shall locate suitable office space for the operation of the Commission. The facilities shall serve as the headquarters of the Commission and shall include all necessary equipment and incidentals required for the proper functioning of the Commission.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Powers of Commission</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Hearings and other activities</inline>.—</heading><content>For the purpose of carrying out its duties, the Commission may hold such hearings and undertake such other activities as the Commission determines to be necessary to carry out its duties.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Studies by gao</inline>.—</heading><content>Upon the request of the Commission, the Comptroller General shall conduct such studies or investigations as the Commission determines to be necessary to carry out its duties.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Cost estimates by congressional budget office and office of the chief actuary of hcfa</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>The Director of the Congressional Budget Office or the Chief Actuary of the Health Care Financing Administration, or both, shall provide to the Commission, upon the request of the Commission, such cost estimates as the Commission determines to be necessary to carry out its duties.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>The Commission shall reimburse the Director of the Congressional Budget Office for expenses relating to the employment in the office of the Director of such additional staff as may be necessary for the Director to comply with requests by the Commission under subparagraph (A).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Detail of federal employees</inline>.—</heading><content>Upon the request of the Commission, the head of any Federal agency is authorized to detail, without reimbursement, any of the personnel of such agency to the Commission to assist the Commission in carrying out its duties. Any such detail shall not interrupt or otherwise affect the civil service status or privileges of the Federal employee.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <heading><inline class="smallCaps">Technical assistance</inline>.—</heading><content>Upon the request of the Commission, the head of a Federal agency shall provide such technical assistance to the Commission as the Commission determines to be necessary to carry out its duties.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <heading><inline class="smallCaps">Use of mails</inline>.—</heading><content>The Commission may use the United States mails in the same manner and under the same conditions as Federal agencies and shall, for purposes of the frank, be <page identifier="/us/stat/111/350">111 STAT. 350</page>considered a commission of Congress as described in section 3215 of title 39, United States Code.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <heading><inline class="smallCaps">Obtaining information</inline>.—</heading><content>The Commission may secure directly from any Federal agency information necessary to enable it to carry out its duties, if the information may be disclosed under section 552 of title 5, United States Code. Upon request of the Chairman of the Commission, the head of such agency shall furnish such information to the Commission.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8)</num> <heading><inline class="smallCaps">Administrative support services</inline>.—</heading><content>Upon the request of the Commission, the Administrator of General Services shall provide to the Commission on a reimbursable basis such administrative support services as the Commission may request.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9)</num> <heading><inline class="smallCaps">Printing</inline>.—</heading><content>For purposes of costs relating to printing and binding, including the cost of personnel detailed from the Government Printing Office, the Commission shall be deemed to be a committee of the Congress.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than March 1, 1999, the Commission shall submit a report to the President and Congress which shall contain a detailed statement of only those recommendations, findings, and conclusions of the Commission that receive the approval of at least 11 members of the Commission.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g)</num> <heading><inline class="smallCaps">Termination</inline>.—</heading><content>The Commission shall terminate 30 days after the date of submission of the report required in subsection (f).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h)</num> <heading><inline class="smallCaps">Authorization of appropriations</inline>.—</heading><content>There are authorized to be appropriated $1,500,000 to carry out this section. 60 percent of such appropriation shall be payable from the Federal Hospital Insurance Trust Fund, and 40 percent of such appropriation shall be payable from the Federal Supplementary Medical Insurance Trust Fund under title XVIII of the Social Security Act (42 U.S.C. 1395i, 1395t).</content> </subsection> </section> <section> <num value="4022">SEC. 4022.</num> <heading>MEDICARE PAYMENT ADVISORY COMMISSION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Title XVIII is amended by inserting after section 1804 the following new section: <quotedContent> <level> <heading class="centered">“<inline class="smallCaps">medicare payment advisory commission</inline></heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395b–6">42 USC 1395b–6</ref>.</p></sidenote> <section> <num value="1805">“<inline class="smallCaps">Sec</inline>. 1805.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Establishment</inline>.—</heading><content>There is hereby established the Medicare Payment Advisory Commission (in this section referred to as the ‘Commission’).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Duties</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Review of payment policies and annual reports</inline>.—</heading><chapeau>The Commission shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>review payment policies under this title, including the topics described in paragraph (2);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>make recommendations to Congress concerning such payment policies;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>by not later than March 1 of each year (beginning with 1998), submit a report to Congress containing the results of such reviews and its recommendations concerning such policies; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>by not later than June 1 of each year (beginning with 1998), submit a report to Congress containing an examination of issues affecting the medicare program, <page identifier="/us/stat/111/351">111 STAT. 351</page>including the implications of changes in health care delivery in the United States and in the market for health care services on the medicare program.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Specific topics to be reviewed</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Medicare+choice program</inline>.—</heading><chapeau>Specifically, the Commission shall review, with respect to the Medicare+Choice program under part C, the following:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>The methodology for making payment to plans under such program, including the making of differential payments and the distribution of differential updates among different payment areas.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>The mechanisms used to adjust payments for risk and the need to adjust such mechanisms to take into account health status of beneficiaries.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>The implications of risk selection both among Medicare+Choice organizations and between the Medicare+Choice option and the original medicare fee-for-service option.</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>The development and implementation of mechanisms to assure the quality of care for those enrolled with Medicare+Choice organizations.</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>The impact of the Medicare+Choice program on access to care for medicare beneficiaries.</content></clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <content>Other major issues in implementation and further development of the Medicare+Choice program.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Original medicare fee-for-service system</inline>.—</heading><chapeau>Specifically, the Commission shall review payment policies under parts A and B, including—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the factors affecting expenditures for services in different sectors, including the process for updating hospital, skilled nursing facility, physician, and other fees,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>payment methodologies, and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>their relationship to access and quality of care for medicare beneficiaries.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Interaction of medicare payment policies with health care delivery generally</inline>.—</heading><content>Specifically, the Commission shall review the effect of payment policies under this title on the delivery of health care services other than under this title and assess the implications of changes in health care delivery in the United States and in the general market for health care services on the medicare program.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Comments on certain secretarial reports</inline>.—</heading><content>If the Secretary submits to Congress (or a committee of Congress) a report that is required by law and that relates to payment policies under this title, the Secretary shall transmit a copy of the report to the Commission. The Commission shall review the report and, not later than 6 months after the date of submittal of the Secretary’s report to Congress, shall submit to the appropriate committees of Congress written comments on such report. Such comments may include such recommendations as the Commission deems appropriate.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Agenda and additional reviews</inline>.—</heading><content>The Commission shall consult periodically with the chairmen and ranking minority members of the appropriate committees of Congress regarding the Commission’s agenda and progress towards achieving <page identifier="/us/stat/111/352">111 STAT. 352</page>the agenda. The Commission may conduct additional reviews, and submit additional reports to the appropriate committees of Congress, from time to time on such topics relating to the program under this title as may be requested by such chairmen and members and as the Commission deems appropriate.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Availability of reports</inline>.—</heading><content>The Commission shall transmit to the Secretary a copy of each report submitted under this subsection and shall make such reports available to the public.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Appropriate committees of congress</inline>.—</heading><content>For purposes of this section, the term ‘appropriate committees of Congress’ means the Committees on Ways and Means and Commerce of the House of Representatives and the Committee on Finance of the Senate.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Membership</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Number and appointment</inline>.—</heading><content>The Commission shall be composed of 15 members appointed by the Comptroller General.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Qualifications</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The membership of the Commission shall include individuals with national recognition for their expertise in health finance and economics, actuarial science, health facility management, health plans and integrated delivery systems, reimbursement of health facilities, allopathic and osteopathic physicians, and other providers of health services, and other related fields, who provide a mix of different professionals, broad geographic representation, and a balance between urban and rural representatives.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Inclusion</inline>.—</heading><content>The membership of the Commission shall include (but not be limited to) physicians and other health professionals, employers, third-party payers, individuals skilled in the conduct and interpretation of biomedical, health services, and health economics research and expertise in outcomes and effectiveness research and technology assessment. Such membership shall also include representatives of consumers and the elderly.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Majority nonproviders</inline>.—</heading><content>Individuals who are directly involved in the provision, or management of the delivery, of items and services covered under this title shall not constitute a majority of the membership of the Commission.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Ethical disclosure</inline>.—</heading><content>The Comptroller General shall establish a system for public disclosure by members of the Commission of financial and other potential conflicts of interest relating to such members.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Terms</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The terms of members of the Commission shall be for 3 years except that the Comptroller General shall designate staggered terms for the members first appointed.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Vacancies</inline>.—</heading><content>Any member appointed to fill a vacancy occurring before the expiration of the term for which the member’s predecessor was appointed shall be appointed only for the remainder of that term. A member may serve after the expiration of that member’s term until a successor has taken office. A vacancy in the Commission <page identifier="/us/stat/111/353">111 STAT. 353</page>shall be filled in the manner in which the original appointment was made.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Compensation</inline>.—</heading><content>While serving on the business of the Commission (including traveltime), a member of the Commission shall be entitled to compensation at the per diem equivalent of the rate provided for level IV of the Executive Schedule under section 5315 of title 5, United States Code; and while so serving away from home and the member’s regular place of business, a member may be allowed travel expenses, as authorized by the Chairman of the Commission. Physicians serving as personnel of the Commission may be provided a physician comparability allowance by the Commission in the same manner as Government physicians may be provided such an allowance by an agency under section 5948 of title 5, United States Code, and for such purpose subsection (i) of such section shall apply to the Commission in the same manner as it applies to the Tennessee Valley Authority. For purposes of pay (other than pay of members of the Commission) and employment benefits, rights, and privileges, all personnel of the Commission shall be treated as if they were employees of the United States Senate.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Chairman; vice chairman</inline>.—</heading><content>The Comptroller General shall designate a member of the Commission, at the time of appointment of the member as Chairman and a member as Vice Chairman for that term of appointment, except that in the case of vacancy of the Chairmanship or Vice Chairmanship, the Comptroller General may designate another member for the remainder of that member’s term.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Meetings</inline>.—</heading><content>The Commission shall meet at the call of the Chairman.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Director and Staff; Experts and Consultants</inline>.—</heading><chapeau>Subject to such review as the Comptroller General deems necessary to assure the efficient administration of the Commission, the Commission may—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>employ and fix the compensation of an Executive Director (subject to the approval of the Comptroller General) and such other personnel as may be necessary to carry out its duties (without regard to the provisions of title 5, United States Code, governing appointments in the competitive service);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>seek such assistance and support as may be required in the performance of its duties from appropriate Federal departments and agencies;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>enter into contracts or make other arrangements, as may be necessary for the conduct of the work of the Commission (without regard to section 3709 of the Revised Statutes (41 U.S.C. 5));</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>make advance, progress, and other payments which relate to the work of the Commission;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>provide transportation and subsistence for persons serving without compensation; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>prescribe such rules and regulations as it deems necessary with respect to the internal organization and operation of the Commission.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Powers</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Obtaining official data</inline>.—</heading><content>The Commission may secure directly from any department or agency of the United States information necessary to enable it to carry out this <page identifier="/us/stat/111/354">111 STAT. 354</page>section. Upon request of the Chairman, the head of that department or agency shall furnish that information to the Commission on an agreed upon schedule.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Data collection</inline>.—</heading><chapeau>In order to carry out its functions, the Commission shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>utilize existing information, both published and unpublished, where possible, collected and assessed either by its own staff or under other arrangements made in accordance with this section,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>carry out, or award grants or contracts for, original research and experimentation, where existing information is inadequate, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>adopt procedures allowing any interested party to submit information for the Commission’s use in making reports and recommendations.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Access of gao to information</inline>.—</heading><content>The Comptroller General shall have unrestricted access to all deliberations, records, and nonproprietary data of the Commission, immediately upon request.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Periodic audit</inline>.—</heading><content>The Commission shall be subject to periodic audit by the Comptroller General.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Authorization of Appropriations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Request for appropriations</inline>.—</heading><content>The Commission shall submit requests for appropriations in the same manner as the Comptroller General submits requests for appropriations, but amounts appropriated for the Commission shall be separate from amounts appropriated for the Comptroller General.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Authorization</inline>.—</heading><content>There are authorized to be appropriated such sums as may be necessary to carry out the provisions of this section. Sixty percent of such appropriation shall be payable from the Federal Hospital Insurance Trust Fund, and 40 percent of such appropriation shall be payable from the Federal Supplementary Medical Insurance Trust Fund.”.</content></paragraph> </subsection> </section> </level> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Abolition of ProPAC and PPRC</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">ProPAC</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Section 1886(e) (42 U.S.C. 1395ww(e)) is amended—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by striking paragraphs (2) and (6); and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>in paragraph (3), by striking “<quotedText>(A) The Commission</quotedText>” and all that follows through “(B)”.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Conforming amendment</inline>.—</heading><content>Section 1862 (42 U.S.C. 1395y) is amended by striking “<quotedText>Prospective Payment Assessment Commission</quotedText>” each place it appears in subsection (a)(1)(D) and subsection (i) and inserting “<quotedText>Medicare Payment Advisory Commission</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading>PPRC.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Title XVIII is amended by striking section 1845 (42 U.S.C. 1395w–1).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Elimination of certain reports</inline>.—</heading><chapeau>Section 1848 (42 U.S.C. 1395w–4) is amended—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by striking subparagraph (F) of subsection (d)(2),</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking subparagraph (B) of subsection (f)(1), and</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>in subsection (f)(3), by striking “<quotedText>Physician Payment Review Commission,</quotedText>”.<page identifier="/us/stat/111/355">111 STAT. 355</page></content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading><content>Section 1848 (42 U.S.C. 1395w–4) is amended by striking “<quotedText>Physician Payment Review Commission</quotedText>” and inserting “<quotedText>Medicare Payment Advisory Commission</quotedText>” each place it appears in subsections (c)(2)(B)(iii), (g)(6)(C), and (g)(7)(C).</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date; Transition</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395b–6">42 USC 1395b–6 note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Comptroller General shall first pro-note vide for appointment of members to the Medicare Payment Advisory Commission (in this subsection referred to as “MedPAC”) by not later than September 30, 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Transition</inline>.—</heading><content>As quickly as possible after the date a majority of members of MedPAC are first appointed, the Comptroller General, in consultation with the Prospective Payment Assessment Commission (in this subsection referred to as “ProPAC”) and the Physician Payment Review Commission (in this subsection referred to as “PPRC”), shall provide for the termination of the ProPAC and the PPRC. As of the date of termination of the respective Commissions, the amendments made by paragraphs (1) and (2), respectively, of subsection (b) become effective. The Comptroller General, to the extent feasible, shall provide for the transfer to the MedPAC of assets and staff of the ProPAC and the PPRC, without any loss of benefits or seniority by virtue of such transfers. Fund balances available to the ProPAC or the PPRC for any period shall be available to the MedPAC for such period for like purposes.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Continuing responsibility for reports</inline>.—</heading><content>The MedPAC shall be responsible for the preparation and submission of reports required by law to be submitted (and which have not been submitted by the date of establishment of the MedPAC) by the ProPAC and the PPRC, and, for this purpose, any reference in law to either such Commission is deemed, after the appointment of the MedPAC, to refer to the MedPAC.</content></paragraph> </subsection> </section> </chapter> <chapter> <num value="4">CHAPTER 4—</num><heading>MEDIGAP PROTECTIONS</heading> <section> <num value="4031">SEC. 4031.</num> <heading>MEDIGAP PROTECTIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Guaranteeing Issue Without Preexisting Conditions for Continuously Covered Individuals</inline>.—</heading><chapeau>Section 1882(s) (42 U.S.C. 1395ss(s)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in paragraph (3), by striking “<quotedText>paragraphs (1) and (2)</quotedText>” and inserting “<quotedText>this subsection</quotedText>”,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by redesignating paragraph (3) as paragraph (4), and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by inserting after paragraph (2) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num><subparagraph class="inline"><num value="A">(A)</num> <chapeau>The issuer of a medicare supplemental policy—</chapeau> <clause class="indent0 fontsize10"><num value="i">“(i)</num> <content>may not deny or condition the issuance or effectiveness of a medicare supplemental policy described in subparagraph (C) that is offered and is available for issuance to new enrollees by such issuer;</content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii)</num> <content>may not discriminate in the pricing of such policy, because of health status, claims experience, receipt of health care, or medical condition; and</content></clause> <clause class="indent0 fontsize10"><num value="iii">“(iii)</num> <content>may not impose an exclusion of benefits based on a pre-existing condition under such policy,</content></clause> <continuation class="indent0 fontsize10">in the case of an individual described in subparagraph (B) who seeks to enroll under the policy not later than 63 days after the <page identifier="/us/stat/111/356">111 STAT. 356</page>date of the termination of enrollment described in such subparagraph and who submits evidence of the date of termination or disenrollment along with the application for such medicare supplemental policy.</continuation> </subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B)</num> <chapeau>An individual described in this subparagraph is an individual described in any of the following clauses:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>The individual is enrolled under an employee welfare benefit plan that provides health benefits that supplement the benefits under this title and the plan terminates or ceases to provide all such supplemental health benefits to the individual.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>The individual is enrolled with a Medicare+Choice organization under a Medicare+Choice plan under part C, and there are circumstances permitting discontinuance of the individual’s election of the plan under the first sentence of section 1851(e)(4).</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>The individual is enrolled with an eligible organization under a contract under section 1876, a similar organization operating under demonstration project authority, effective for periods before April 1, 1999, with an organization under an agreement under section 1833(a)(1)(A), or with an organization under a policy described in subsection (t), and such enrollment ceases under the same circumstances that would permit discontinuance of an individual’s election of coverage under the first sentence of section 1851(e)(4) and, in the case of a policy described in subsection (t), there is no provision under applicable State law for the continuation or conversion of coverage under such policy.</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <chapeau>The individual is enrolled under a medicare supplemental policy under this section and such enrollment ceases because—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>of the bankruptcy or insolvency of the issuer or because of other involuntary termination of coverage or enrollment under such policy and there is no provision under applicable State law for the continuation or conversion of such coverage;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the issuer of the policy substantially violated a material provision of the policy; or</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>the issuer (or an agent or other entity acting on the issuer’s behalf) materially misrepresented the policy’s provisions in marketing the policy to the individual,</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <chapeau>The individual—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>was enrolled under a medicare supplemental policy under this section,</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>subsequently terminates such enrollment and enrolls, for the first time, with any Medicare+Choice organization under a Medicare+Choice plan under part C, any eligible organization under a contract under section 1876, any similar organization operating under demonstration project authority, or any policy described in subsection (t), and</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>the subsequent enrollment under subclause (II) is terminated by the enrollee during any period within the first 12 months of such enrollment (during which the enrollee is permitted to terminate such subsequent enrollment under section 1851(e)).<page identifier="/us/stat/111/357">111 STAT. 357</page></content></subclause> </clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <content>The individual, upon first becoming eligible for benefits under part A at age 65, enrolls in a Medicare+Choice plan under part C, and disenrolls from such plan by not later than 12 months after the effective date of such enrollment.</content></clause> </subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">“(C)</num><clause class="inline"><num value="i">(i)</num> <content>Subject to clauses (ii) and (iii), a medicare supplemental policy described in this subparagraph is a medicare supplemental policy which has a benefit package classified as ‘A’, ‘B’, ‘C’, or ‘F’ under the standards established under subsection (p)(2).</content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii)</num> <content>Only for purposes of an individual described in subparagraph (B)(v), a medicare supplemental policy described in this subparagraph is the same medicare supplemental policy referred to in such subparagraph in which the individual was most recently previously enrolled, if available from the same issuer, or, if not so available, a policy described in clause (i).</content></clause> <clause class="indent0 fontsize10"><num value="iii">“(iii)</num> <content>Only for purposes of an individual described in subparagraph (B)(vi), a medicare supplemental policy described in this subparagraph shall include any medicare supplemental policy.</content></clause> <clause class="indent0 fontsize10"><num value="iv">“(iv)</num> <content>For purposes of applying this paragraph in the case of a State that provides for offering of benefit packages other than under the classification referred to in clause (i), the references to benefit packages in such clause are deemed references to comparable benefit packages offered in such State.</content></clause> </subparagraph> <subparagraph class="indent0 fontsize10"><num value="D">“(D)</num> <content>At the time of an event described in subparagraph (B) because of which an individual ceases enrollment or loses coverage or benefits under a contract or agreement, policy, or plan, the organization that offers the contract or agreement, the insurer offering the policy, or the administrator of the plan, respectively, shall notify the individual of the rights of the individual under this paragraph, and obligations of issuers of medicare supplemental policies, under subparagraph (A).”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Limitation on Imposition of Preexisting Condition Exclusion During Initial Open Enrollment Period</inline>.—</heading><chapeau>Section 1882(s)(2) (42 U.S.C. 1395ss(s)(2)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subparagraph (B), by striking “<quotedText>subparagraph (C)</quotedText>” and inserting “<quotedText>subparagraphs (C) and (D)</quotedText>”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <chapeau>In the case of a policy issued during the 6-month period described in subparagraph (A) to an individual who is 65 years of age or older as of the date of issuance and who as of the date of the application for enrollment has a continuous period of creditable coverage (as defined in 2701(c) of the Public Health Service Act) of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>at least 6 months, the policy may not exclude benefits based on a pre-existing condition; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>less than 6 months, if the policy excludes benefits based on a preexisting condition, the policy shall reduce the period of any preexisting condition exclusion by the aggregate of the periods of creditable coverage (if any, as so defined) applicable to the individual as of the enrollment date.</content></clause> <continuation class="indent0 fontsize10">The Secretary shall specify the manner of the reduction under clause (ii), based upon the rules used by the Secretary in carrying out section 2701(a)(3) of such Act.”.</continuation> </subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>Section 1882(d)(3)(A)(vi)(III) (42 U.S.C. 1395ss(d)(2)(A)(vi)(III)) is amended by inserting “<quotedText>, a policy described in clause (v),</quotedText>” after “Medicare supplemental policy”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395ss">42 USC 1395ss note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Dates</inline>.—<page identifier="/us/stat/111/358">111 STAT. 358</page></heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Guaranteed issue</inline>.—</heading><content>The amendment made by subsection (a) shall take effect on July 1, 1998.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Limit on preexisting condition exclusions</inline>.—</heading><content>The amendment made by subsection (b) shall apply to policies issued on or after July 1, 1998.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Conforming amendment</inline>.—</heading><content>The amendment made by subsection (c) shall be effective as if included in the enactment of the Health Insurance Portability and Accountability Act of 1996.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395ss">42 USC 1395ss note</ref>.</p></sidenote> <heading><inline class="smallCaps">Transition Provisions</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If the Secretary of Health and Human Services identifies a State as requiring a change to its statutes or regulations to conform its regulatory program to the changes made by this section, the State regulatory program shall not be considered to be out of compliance with the requirements of section 1882 of the Social Security Act due solely to failure to make such change until the date specified in paragraph (4).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote> <heading><inline class="smallCaps">NAIC standards</inline>.—</heading><content>If, within 9 months after the date of the enactment of this Act, the National Association of Insurance Commissioners (in this subsection referred to as the “NAIC”) modifies its NAIC Model Regulation relating to section 1882 of the Social Security Act (referred to in such section as the 1991 NAIC Model Regulation, as modified pursuant to section 171(m)(2) of the Social Security Act Amendments of 1994 (Public Law 103–432) and as modified pursuant to section 1882(d)(3)(A)(vi)(IV) of the Social Security Act, as added by section 271(a) of the Health Insurance Portability and Accountability Act of 1996 (Public Law 104–191) to conform to the amendments made by this section, such revised regulation incorporating the modifications shall be considered to be the applicable NAIC model regulation (including the revised NAIC model regulation and the 1991 NAIC Model Regulation) for the purposes of such section.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Secretary standards</inline>.—</heading><content>If the NAIC does not make the modifications described in paragraph (2) within the period specified in such paragraph, the Secretary of Health and Human Services shall make the modifications described in such paragraph and such revised regulation incorporating the modifications shall be considered to be the appropriate Regulation for the purposes of such section.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Date specified</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Subject to subparagraph (B), the date specified in this paragraph for a State is the earlier of—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>the date the State changes its statutes or regulations to conform its regulatory program to the changes made by this section, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>1 year after the date the NAIC or the Secretary first makes the modifications under paragraph (2) or (3), respectively.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Additional legislative action required</inline>.—</heading><chapeau>In the case of a State which the Secretary identifies as—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>requiring State legislation (other than legislation appropriating funds) to conform its regulatory program to the changes made in this section, but<page identifier="/us/stat/111/359">111 STAT. 359</page></content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>having a legislature which is not scheduled to meet in 1999 in a legislative session in which such legislation may be considered,</content></clause> <continuation class="indent0 fontsize10">the date specified in this paragraph is the first day of the first calendar quarter beginning after the close of the first legislative session of the State legislature that begins on or after July 1, 1999. For purposes of the previous sentence, in the case of a State that has a 2-year legislative session, each year of such session shall be deemed to be a separate regular session of the State legislature.</continuation> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Conforming Benefits to Changes in Terminology for Hospital Outpatient Department Cost Sharing</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395ss">42 USC 1395ss note</ref>.</p></sidenote><content>For purposes of apply section 1882 of the Social Security Act (42 U.S.C. 1395ss) and regulations referred to in subsection (e), copayment amounts provided under section 1833(t)(5) of such Act with respect to hospital outpatient department services shall be treated under medicare supplemental policies in the same manner as coinsurance with respect to such services.</content> </subsection> </section> <section> <num value="4032">SEC. 4032.</num> <heading>ADDITION OF HIGH DEDUCTIBLE MEDIGAP POLICIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 1882(p) (42 U.S.C. 1395ss(p)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in paragraph (2)(C), by inserting “<quotedText>plus the 2 plans described in paragraph (11)(A)</quotedText>” after “exceed 10”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following: <quotedContent> <paragraph class="indent0 fontsize10"><num value="11">“(11)</num><subparagraph class="inline"><num value="A">(A)</num> <chapeau>For purposes of paragraph (2), the benefit packages described in this subparagraph are as follows:</chapeau> <clause class="indent0 fontsize10"><num value="i">“(i)</num> <content>The benefit package classified as ‘F’ under the standards established by such paragraph, except that it has a high deductible feature.</content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii)</num> <content>The benefit package classified as ‘J’ under the standards established by such paragraph, except that it has a high deductible feature.</content></clause> </subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B)</num> <chapeau>For purposes of subparagraph (A), a high deductible feature is one which—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>requires the beneficiary of the policy to pay annual out-of-pocket expenses (other than premiums) in the amount specified in subparagraph (C) before the policy begins payment of benefits, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>covers 100 percent of covered out-of-pocket expenses once such deductible nas been satisfied in a year.</content></clause> </subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">“(C)</num> <chapeau>The amount specified in this subparagraph—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>for 1998 and 1999 is $1,500, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>for a subsequent year, is the amount specified in this subparagraph for the previous year increased by the percentage increase in the Consumer Price Index for all urban consumers (all items; U.S. city average) for the 12-month period ending with August of the preceding year.</content></clause> <continuation class="indent0 fontsize10">If any amount determined under clause (ii) is not a multiple of $10, it shall be rounded to the nearest multiple of $10.”.</continuation> </subparagraph> </paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395ss">42 USC 1395ss note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendments made by subsection (a) shall take effect the date of the enactment of this Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Transition</inline>.—</heading><content>The provisions of section 4031(e) shall apply with respect to this section in the same manner as they apply to section 4031.<page identifier="/us/stat/111/360">111 STAT. 360</page></content></paragraph> </subsection> </section> </chapter> <chapter> <num value="5">CHAPTER 5—</num><heading>TAX TREATMENT OF HOSPITALS PARTICIPATING IN PROVIDER-SPONSORED ORGANIZATIONS</heading> <section> <num value="401">SEC. 4041.</num> <heading>TAX TREATMENT OF HOSPITALS WHICH PARTICIPATE IN PROVIDER-SPONSORED ORGANIZATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 501 of the Internal Revenue Code <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s501">26 USC 501</ref>.</p></sidenote>of 1986 (relating to exemption from tax on corporations, certain trusts, etc.) is amended by redesignating subsection (o) as subsection (p) and by inserting after subsection (n) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="o">“(o)</num> <heading><inline class="smallCaps">Treatment of Hospitals Participating In Provider-Sponsored Organizations</inline>.—</heading><content>An organization shall not fail to be treated as organized and operated exclusively for a charitable purpose for purposes of subsection (c)(3) solely because a hospital which is owned and operated by such organization participates in a provider-sponsored organization (as defined in section 1853(e) of the Social Security Act), whether or not the provider-sponsored organization is exempt from tax. For purposes of subsection (c)(3), any person with a material financial interest in such a provider-sponsored organization shall be treated as a private shareholder or individual with respect to the hospital.”</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s501">26 USC 501 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall take effect on the date of the enactment of this Act.</content> </subsection> </section> </chapter> </subtitle> <subtitle> <num value="B">Subtitle B—</num><heading>Prevention Initiatives</heading> <section> <num value="4101">SEC. 4101.</num> <heading>SCREENING MAMMOGRAPHY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Providing Annual Screening Mammography for Women Over Age 39</inline>.—</heading><chapeau>Section 1834(c)(2)(A) (42 U.S.C. 1395m(c)(2)(A)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in clause (iii), to read as follows: <quotedContent> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>In the case of a woman over 39 years of age, payment may not be made under this part for screening mammography performed within 11 months following the month in which a previous screening mammography was performed.”; and</content></clause> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking clauses (iv) and (v).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Waiver of Deductible</inline>.—</heading><chapeau>The first sentence of section 1833(b) (42 U.S.C. 13951(b)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>and</quotedText>” before “(4)”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting before the period at the end the following: “, and (5) such deductible shall not apply with respect to screening mammography (as described in section 1861(jj))”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>Section 1834(c)(1)(C) (42 U.S.C. 1395m(c)(1)(O) is amended by striking “<quotedText>, subject to the deductible established under section 1833(b),</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395l">42 USC 1395<i>l</i> note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to items and services furnished on or after January 1, 1998.</content> </subsection> </section> <section> <num value="4102">SEC. 4102.</num> <heading>SCREENING PAP SMEAR AND PELVIC EXAMS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Coverage of Pelvic Exam; Increasing Frequency of Coverage of Pap Smear</inline>.—</heading><chapeau>Section 1861(nn) (42 U.S.C. 1395x(nn)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in the heading, by striking “<quotedText>Smear</quotedText>” and inserting “<quotedText>Smear; Screening Pelvic Exam</quotedText>”;<page identifier="/us/stat/111/361">111 STAT. 361</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting “<quotedText>or vaginal</quotedText>” after “cervical” each place it appears;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by striking “<quotedText>(nn)</quotedText>” and inserting “<quotedText>(nn)(1)</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>by striking “<quotedText>3 years</quotedText>” and all that follows and inserting “<quotedText>3 years, or during the preceding year in the case of a woman described in paragraph (3).</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>by adding at the end the following new paragraphs: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>The term ‘screening pelvic exam’ means a pelvic examination provided to a woman if the woman involved has not had such an examination during the preceding 3 years, or during the preceding year in the case of a woman described in paragraph (3), and includes a clinical breast examination.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <chapeau>A woman described in this paragraph is a woman who—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>is of childbearing age and has had a test described in this subsection during any of the preceding 3 years that indicated the presence of cervical or vaginal cancer or other abnormality; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>is at high risk of developing cervical or vaginal cancer (as determined pursuant to factors identified by the Secretary).”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Waiver of Deductible</inline>.—</heading><chapeau>The first sentence of section 1833(b) (42 U.S.C. 13951(b)), as amended by section 4101(b), is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>and</quotedText>” before “(5)”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting before the period at the end the following: “, and (6) such deductible shall not apply with respect to screening pap smear and screening pelvic exam (as described in section 1861(nn))”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><content>Sections 1861(s)(14) and 1862(a)(1)(F) (42 U.S.C. 1395x(s)(14), 1395y(a)(1)(F)) are each amended by inserting “<quotedText>and screening pelvic exam</quotedText>” after “screening pap smear”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Payment Under Physician Fee Schedule</inline>.—</heading><content>Section 1848(j)(3) (42 U.S.C. 1395w–4(j)(3)) is amended by striking “<quotedText>and (4)</quotedText>” and inserting “<quotedText>(4) and (14) (with respect to services described in section 1861(nn)(2))</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395l">42 USC 1395<i>l</i> note</ref>.</p></sidenote> shall apply to items and services furnished on or after January 1, 1998.</content> </subsection> </section> <section> <num value="4103">SEC. 4103.</num> <heading>PROSTATE CANCER SCREENING TESTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Coverage</inline>.—</heading><chapeau>Section 1861 (42 U.S.C. 1395x) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in subsection (s)(2)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>and</quotedText>” at the end of subparagraphs (N) and (O), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by inserting after subparagraph (O) the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="P">“(P)</num> <content>prostate cancer screening tests (as defined in subsection (oo)); and”; and</content></subparagraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following new subsection: <quotedContent> <level> <heading class="centered">“Prostate Cancer Screening Tests</heading> <subsection class="indent0 fontsize10"> <num value="oo">“(oo)</num><paragraph class="inline"><num value="1">(1)</num> <content>The term ‘prostate cancer screening test’ means a test that consists of any (or all) of the procedures described in paragraph (2) provided for the purpose of early detection of prostate cancer to a man over 50 years of age who has not had such a test during the preceding year.<page identifier="/us/stat/111/362">111 STAT. 362</page></content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2)</num> <chapeau>The procedures described in this paragraph are as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>A digital rectal examination.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>A prostate-specific antigen blood test.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>For years beginning after 2002, such other procedures as the Secretary finds appropriate for the purpose of early detection of prostate cancer, taking into account changes in technology and standards of medical practice, availability, effectiveness, costs, and such other factors as the Secretary considers appropriate.”.</content></subparagraph> </paragraph> </subsection> </level> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Payment for Prostate-Specific Antigen Blood Test Under Clinical Diagnostic Laboratory Test Fee Schedules</inline>.—</heading><content>Section 1833(h)(1)(A) (42 U.S.C. 13951(h)(1)(A)) is amended by inserting after “<quotedText>laboratory tests</quotedText>” the following: “(including prostate cancer screening tests under section 1861(oo) consisting of prostate-specific antigen blood tests)”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><chapeau>Section 1862(a) (42 U.S.C. 1395y(a)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in paragraph (1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in subparagraph (E), by striking “<quotedText>and</quotedText>” at the end,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in subparagraph (F), by striking the semicolon at the end and inserting “<quotedText>, and</quotedText>”, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <content>in the case of prostate cancer screening tests (as defined in section 1861(oo)), which are performed more frequently than is covered under such section, ; and</content></subparagraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in paragraph (7), by striking “<quotedText>paragraph (1)(B) or under paragraph (1)(F)</quotedText>” and inserting “<quotedText>subparagraphs (B), (F), or (G) of paragraph (1)</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Payment Under Physician Fee Schedule</inline>.—</heading><content>Section 1848(j)(3) (42 U.S.C. 1395w–4(j)(3)), as amended by section 4102, is amended by inserting “<quotedText>, (2)(P) (with respect to services described in subparagraphs (A) and (C) of section 1861(oo)(2),</quotedText>” after “(2)(G)”</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395l">42 USC 1395<i>l</i> note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to items and services furnished on or after January 1, 2000.</content> </subsection> </section> <section> <num value="4104">SEC. 4104.</num> <heading>COVERAGE OF COLORECTAL SCREENING.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Coverage</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Section 1861 (42 U.S.C. 1395x), as amended by section 4103(a), is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <chapeau>in subsection (s)(2)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by striking “<quotedText>and</quotedText>” at the end of subparagraph (P);</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by adding “<quotedText>and</quotedText>” at the end of subparagraph (Q); and</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="R">“(R)</num> <content>colorectal cancer screening tests (as defined in subsection (pp)); and”; and</content></subparagraph> </quotedContent> </content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by adding at the end the following new subsection: <quotedContent> <level> <heading>“Colorectal Cancer Screening Tests</heading> <subsection class="indent0 fontsize10"> <num value="pp">“(pp)</num><paragraph class="inline"><num value="1">(1)</num> <chapeau>The term ‘colorectal cancer screening test’ means any of the following procedures furnished to an individual for the purpose of early detection of colorectal cancer:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Screening fecal-occult blood test.<page identifier="/us/stat/111/363">111 STAT. 363</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Screening flexible sigmoidoscopy.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>In the case of an individual at high risk for colorectal cancer, screening colonoscopy.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>Such other tests or procedures, and modifications to tests and procedures under this subsection, with such frequency and payment limits, as the Secretary determines appropriate, in consultation with appropriate organizations.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>In paragraph (1)(C), an ‘individual at high risk for colorectal cancer’ is an individual who, because of family history, prior experience of cancer or precursor neoplastic polyps, a history of chronic digestive disease condition (including inflammatory bowel disease, Crohn’s Disease, or ulcerative colitis), the presence of any appropriate recognized gene markers for colorectal cancer, or other predisposing factors, faces a high risk for colorectal cancer.”.</content></paragraph> </subsection> </level> </quotedContent> </content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Deadline for publication of determination on coverage of screening barium enema</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8">Federal Register, publication.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x note</ref>.</p></sidenote><content>Not later than the earlier of the date that is January 1, 1998, or 90 days after the date of the enactment of this Act, the Secretary of Health and Human Services shall publish notice in the Federal Register with respect to the determination under paragraph (1)(D) of section 1861(pp) of the Social Security Act (42 U.S.C. 1395x(pp)), as added by paragraph (1), on the coverage of a screening barium enema as a colorectal cancer screening test under such section.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Frequency Limits and Payment</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 1834 (42 U.S.C. 1395m) is amended by inserting after subsection (c) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Frequency Limits And Payment for Colorectal Cancer Screening Tests</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Screening fecal-occult blood tests</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Payment amount</inline>.—</heading><content>The payment amount for colorectal cancer screening tests consisting of screening fecal-occult blood tests is equal to the payment amount established for diagnostic fecal-occult blood tests under section 1833(h).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Frequency limit</inline>.—</heading><chapeau>No payment may be made under this part for a colorectal cancer screening test consisting of a screening fecal-occult blood test—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>if the individual is under 50 years of age; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>if the test is performed within the 11 months after a previous screening fecal-occult blood test.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Screening flexible sigmoidoscopies</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Fee schedule</inline>.—</heading><content>With respect to colorectal cancer screening tests consisting of screening flexible sigmoidoscopies, payment under section 1848 shall be consistent with payment under such section for similar or related services.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Payment limit</inline>.—</heading><content>In the case of screening flexible sigmoidoscopy services, payment under this part shall not exceed such amount as the Secretary specifies, based upon the rates recognized for diagnostic flexible sigmoidoscopy services.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Facility payment limit</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Notwithstanding subsections (i)(2)(A) and (t) of section 1833, in the case of screening <page identifier="/us/stat/111/364">111 STAT. 364</page>flexible sigmoidoscopy services furnished on or after January 1, 1999, that—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>in accordance with regulations, may be performed in an ambulatory surgical center and for which the Secretary permits ambulatory surgical center payments under this part, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>are performed in an ambulatory surgical center or hospital outpatient department, payment under this part shall be based on the lesser of the amount under the fee schedule that would apply to such services if they were performed in a hospital outpatient department in an area or the amount under the fee schedule that would apply to such services if they were performed in an ambulatory surgical center in the same area.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Limitation on deductible and coinsurance</inline>.—</heading><chapeau>Notwithstanding any other provision of this title, in the case of a beneficiary who receives the services described in clause (i)—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>in computing the amount of any applicable deductible or copayment, the computation of such deductible or coinsurance shall be based upon the fee schedule under which payment is made for the services, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the amount of such coinsurance is equal to 25 percent of the payment amount under the fee schedule described in subclause (I).</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Special rule for detected lesions</inline>.—</heading><content>If during the course of such screening flexible sigmoidoscopy, a lesion or growth is detected which results in a biopsy or removal of the lesion or growth, payment under this part shall not be made for the screening flexible sigmoidoscopy but shall be made for the procedure classified as a flexible sigmoidoscopy with such biopsy or removal.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Frequency limit</inline>.—</heading><chapeau>No payment may be made under this part for a colorectal cancer screening test consisting of a screening flexible sigmoidoscopy—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>if the individual is under 50 years of age; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>if the procedure is performed within the 47 months after a previous screening flexible sigmoidoscopy.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Screening Colonoscopy for Individuals at High Risk for Colorectal Cancer</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Fee schedule</inline>.—</heading><content>With respect to colorectal cancer screening test consisting of a screening colonoscopy for individuals at high risk for colorectal cancer (as defined in section 1861(pp)(2)), payment under section 1848 shall be consistent with payment amounts under such section for similar or related services.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Payment limit</inline>.—</heading><content>In the case of screening colonoscopy services, payment under this part shall not exceed such amount as the Secretary specifies, based upon the rates recognized for diagnostic colonoscopy services.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Facility payment limit</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Notwithstanding subsections (i)(2)(A) and (t) of section 1833, in the case of screening <page identifier="/us/stat/111/365">111 STAT. 365</page>colonoscopy services furnished on or after January 1, 1999, that are performed in an ambulatory surgical center or a hospital outpatient department, payment under this part shall be based on the lesser of the amount under the fee schedule that would apply to such services if they were performed in a hospital outpatient department in an area or the amount under the fee schedule that would apply to such services if they were performed in an ambulatory surgical center in the same area.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Limitation on deductible and coinsurance</inline>.—</heading><chapeau>Notwithstanding any other provision of this title, in the case of a beneficiary who receives the services described in clause (i)—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>in computing the amount of any applicable deductible or coinsurance, the computation of such deductible or coinsurance shall be based upon the fee schedule under which payment is made for the services, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the amount of such coinsurance is equal to 25 percent of the payment amount under the fee schedule described in subclause (I).</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Special rule for detected lesions</inline>.—</heading><content>If during the course of such screening colonoscopy, a lesion or growth is detected which results in a biopsy or removal of the lesion or growth, payment under this part shall not be made for the screening colonoscopy but shall be made for the procedure classified as a colonoscopy with such biopsy or removal.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Frequency limit</inline>.—</heading><content>No payment may be made under this part for a colorectal cancer screening test consisting of a screening colonoscopy for individuals at high risk for colorectal cancer if the procedure is performed within the 23 months after a previous screening colonoscopy.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><paragraph class="inline"><num value="1">(1)</num> <content>Paragraphs (1)(D) and (2)(D) of section 1833(a) (42 U.S.C. 13951(a)) are each amended by inserting “<quotedText>or section 1834(d)(1)</quotedText>” after “subsection (h)(1)”.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <content>Section 1833(h)(1)(A) (42 U.S.C. 13951(h)(1)(A)) is amended by striking “<quotedText>The Secretary</quotedText>” and inserting “<quotedText>Subject to section 1834(d)(1), the Secretary</quotedText>”.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3)</num> <chapeau>Section 1862(a) (42 U.S.C. 1395y(a)), as amended by section 4103(c), is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <chapeau>in paragraph (1)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>in subparagraph (F), by striking “<quotedText>and</quotedText>” at the end,</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>in subparagraph (G), by striking the semicolon at the end and inserting “<quotedText>, and</quotedText>”, and</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num> <content>in the case of colorectal cancer screening tests, which are performed more frequently than is covered under section 1834(d);”; and</content></subparagraph> </quotedContent> </content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in paragraph (7), by striking “<quotedText>or (G)</quotedText>” and inserting “<quotedText>(G), or (H)</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Payment Under Physician Fee Schedule</inline>.—</heading><content>Section 1848(j)(3) (42 U.S.C. 1395w–4(j)(3)), as amended by sections 4102 and 4103, is amended by inserting “<quotedText>(2)(R) (with respect to services <page identifier="/us/stat/111/366">111 STAT. 366</page>described in subparagraphs (B) , (C), and (D) of section 1861(pp)(1)),</quotedText>” before “(3)”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395l">42 USC 1395<i>l</i> note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to items and services furnished on or after January 1, 1998.</content> </subsection> </section> <section> <num value="4105">SEC. 4105.</num> <heading>DIABETES SELF-MANAGEMENT BENEFITS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Coverage of Diabetes Outpatient Self-Management Training Services</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Section 1861 (42 U.S.C. 1395x), as amended by sections 4103(a) and 4104(a), is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <chapeau>in subsection (s)(2)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by striking “<quotedText>and</quotedText>” at the end of subparagraph (Q);</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by adding “<quotedText>and</quotedText>” at the end of subparagraph (R); and</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="S">“(S)</num> <content>diabetes outpatient self-management training services (as defined in subsection (qq)); and”; and</content></subparagraph> </quotedContent> </content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by adding at the end the following new subsection: <quotedContent> <level> <heading class="centered">“Diabetes Outpatient Self-Management Training Services</heading> <subsection class="indent0 fontsize10"> <num value="qq">“(qq)</num><paragraph class="inline"><num value="1">(1)</num> <content>The term ‘diabetes outpatient self-management training services’ means educational and training services furnished (at such times as the Secretary determines appropriate) to an individual with diabetes by a certified provider (as described in paragraph (2)(A)) in an outpatient setting by an individual or entity who meets the quality standards described in paragraph (2)(B), but only if the physician who is managing the individual’s diabetic condition certifies that such services are needed under a comprehensive plan of care related to the individual’s diabetic condition to ensure therapy compliance or to provide the individual with necessary skills and knowledge (including skills related to the self-administration of injectable drugs) to participate in the management of the individual’s condition.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2)</num> <chapeau>In paragraph (1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>a ‘certified provider’ is a physician, or other individual or entity designated by the Secretary, that, in addition to providing diabetes outpatient self-management training services, provides other items or services for which payment may be made under this title; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>a physician, or such other individual or entity, meets the quality standards described in this paragraph if the physician, or individual or entity, meets quality standards established by the Secretary, except that the physician or other individual or entity shall be deemed to have met such standards if the physician or other individual or entity meets applicable standards originally established by the National Diabetes Advisory Board and subsequently revised by organizations who participated in the establishment of standards by such Board, or is recognized by an organization that represents individuals (including individuals under this title) with diabetes as meeting standards for furnishing the services.”.</content></subparagraph> </paragraph> </subsection> </level> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Payment under physician fee schedule</inline>.—</heading><content>Section 1848(j)(3) (42 U.S.C. 1395w–4(j)(3)) as amended in sections <page identifier="/us/stat/111/367">111 STAT. 367</page>4102, 4103, and 4104, is amended by inserting “<quotedText>(2)(S),</quotedText>” before “(3),”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Consultation with organizations in establishing payment amounts for services provided by physicians</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395w–4">42 USC 1395w–4 note</ref>.</p></sidenote><content>In establishing payment amounts under section 1848 of the Social Security Act for physicians’ services consisting of diabetes outpatient self-management training services, the Secretary of Health and Human Services shall consult with appropriate organizations, including such organizations representing individuals or medicare beneficiaries with diabetes.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Blood-Testing Strips for Individuals With Diabetes</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Including strips and monitors as durable medical equipment</inline>.—</heading><content>The first sentence of section 1861(n) (42 U.S.C. 1395x(n)) is amended by inserting before the semicolon the following: “, and includes blood-testing strips and blood glucose monitors for individuals with diabetes without regard to whether the individual has Type I or Type II diabetes or to the individual’s use of insulin (as determined under standards established by the Secretary in consultation with the appropriate organizations)”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">10 percent reduction in payments for testing strips</inline>.—</heading><content>Section 1834(a)(2)(B)(iv) (42 U.S.C. 1395m(a)(2)(B)(iv)) is amended by adding before the period the following: “(reduced by 10 percent, in the case of a blood glucose testing strip furnished after 1997 for an individual with diabetes)”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Establishment of Outcome Measures for Beneficiaries With Diabetes</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary of Health and Human Services, in consultation with appropriate organizations, shall establish outcome measures, including glysolated hemoglobin (past 90-day average blood sugar levels), for purposes of evaluating the improvement of the health status of medicare beneficiaries with diabetes mellitus.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Recommendations for modifications to screening benefits</inline>.—</heading><content>Taking into account information on the health status of medicare beneficiaries with diabetes mellitus as measured under the outcome measures established under paragraph (1), the Secretary shall from time to time submit recommendations to Congress regarding modifications to the coverage of services for such beneficiaries under the medicare program.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395m">42 USC 1395m note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in paragraph (2), the amendments made by this section shall apply to items and services furnished on or after July 1, 1998.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Testing strips</inline>.—</heading><content>The amendment made by subsection (b)(2) shall apply with respect to blood glucose testing strips furnished on or after January 1, 1998.</content></paragraph> </subsection> </section> <section> <num value="4106">SEC. 4106.</num> <heading>STANDARDIZATION OF MEDICARE COVERAGE OF BONE MASS MEASUREMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 1861 (42 U.S.C. 1395x), as amended by sections 4103(a), 4104(a), and 4105(a), is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in subsection (s)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in paragraph (12)(C), by striking “<quotedText>and</quotedText>” at the end,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking the period at the end of paragraph (14) and inserting “<quotedText>; and</quotedText>”,<page identifier="/us/stat/111/368">111 STAT. 368</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by redesignating paragraphs (15) and (16) as paragraphs (16) and (17), respectively, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>by inserting after paragraph (14) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="15">“(15)</num> <content>bone mass measurement (as defined in subsection (rr)).”; and</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting after subsection (qq) the following new subsection: <quotedContent> <level> <heading class="centered">“Bone Mass Measurement</heading> <subsection class="indent0 fontsize10"> <num value="rr">“(rr)</num><paragraph class="inline"><num value="1">(1)</num> <content>The term ‘bone mass measurement’ means a radiologic or radioisotopic procedure or other procedure approved by the Food and Drug Administration performed on a qualified individual (as defined in paragraph (2)) for the purpose of identifying bone mass or detecting bone loss or determining bone quality, and includes a physician’s interpretation of the results of the procedure.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote> <chapeau>For purposes of this subsection, the term ‘qualified individual’ means an individual who is (in accordance with regulations prescribed by the Secretary)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>an estrogen-deficient woman at clinical risk for osteoporosis;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>an individual with vertebral abnormalities;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>an individual receiving long-term glucocorticoid steroid therapy;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>an individual with primary hyperparathyroidism; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>an individual being monitored to assess the response to or efficacy of an approved osteoporosis drug therapy.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3)</num> <content>The Secretary shall establish such standards regarding the frequency with which a qualified individual shall be eligible to be provided benefits for bone mass measurement under this title.”.</content></paragraph> </subsection> </level> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Payment Under Physician Fee Schedule</inline>.—</heading><chapeau>Section 1848(j)(3) (42 U.S.C. 1395w–4(j)(3)), as amended by sections 4102, 4103, 4104 and 4105, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>(4) and (14)</quotedText>” and inserting “<quotedText>(4), (14)</quotedText>” and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting “<quotedText>and (15)</quotedText>” after “1861(nn)(2))”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><content>Sections 1864(a), 1902(a)(9)(C), and 1915(a)(1)(B)(ii)(I) (42 U.S.C. 1395aa(a), 1396a(a)(9)(C), and 1396n(a)(1)(B)(ii)(I)) are amended by striking “<quotedText>paragraphs (15) and (16)</quotedText>” each place it appears and inserting “<quotedText>paragraphs (16) and (17)</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to bone mass measurements performed on or after July 1, 1998.</content> </subsection> </section> <section> <num value="4107">SEC. 4107.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x note</ref>.</p></sidenote> <heading>VACCINES OUTREACH EXPANSION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Extension of Influenza and Pneumococcal Vaccination Campaign</inline>.—</heading><content>In order to increase utilization of pneumococcal and influenza vaccines in medicare beneficiaries, the Influenza and Pneumococcal Vaccination Campaign carried out by the Health Care Financing Administration in conjunction with the Centers for Disease Control and Prevention and the National Coalition for Adult Immunization, is extended until the end of fiscal year 2002.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Authorization of Appropriation</inline>.—</heading><content>There are hereby authorized to be appropriated for each of fiscal years 1998 through 2002, $8,000,000 for the Campaign described in subsection (a).<page identifier="/us/stat/111/369">111 STAT. 369</page>Of the amount so authorized to be appropriated in each fiscal year, 60 percent of the amount so appropriated shall be payable from the Federal Hospital Insurance Trust Fund, and 40 percent shall be payable from the Federal Supplementary Medical Insurance Trust Fund.</content> </subsection> </section> <section> <num value="4108">SEC. 4108.</num> <heading>STUDY ON PREVENTIVE AND ENHANCED BENEFITS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Study</inline>.—</heading><content>The Secretary of Health and Human Services shall request the National Academy of Sciences, and as appropriate in conjunction with the United States Preventive Services Task Force, to analyze the expansion or modification of preventive or other benefits provided to medicare beneficiaries under title XVIII of the Social Security Act. The analysis shall consider both the short term and long term benefits, and costs to the medicare program, of such expansion or modification.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Report</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Initial report</inline>.—</heading><content>Not later than 2 years after the date of the enactment of this Act, the Secretary shall submit a report on the findings of the analysis conducted under subsection (a) to the Committee on Ways and Means and the Committee on Commerce of the House of Representatives and the Committee on Finance of the Senate.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Contents</inline>.—</heading><chapeau>Such report shall include specific findings with respect to coverage of at least the following benefits:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Nutrition therapy services, including parenteral and enteral nutrition and including the provision of such services by a registered dietitian.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Skin cancer screening.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>Medically necessary dental care.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>Routine patient care costs for beneficiaries enrolled in approved clinical trial programs.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>Elimination of time limitation for coverage of immunosuppressive drugs for transplant patients.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Funding</inline>.—</heading><content>From funds appropriated to the Department of Health and Human Services for fiscal years 1998 and 1999, the Secretary shall provide for such funding as the Secretary determines necessary for the conduct of the study by the National Academy of Sciences under this section.</content></paragraph> </subsection> </section> </subtitle> <subtitle> <num value="C">Subtitle C—</num><heading>Rural Initiatives</heading> <section> <num value="4201">SEC. 4201.</num> <heading>MEDICARE RURAL HOSPITAL FLEXIBILITY PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Medicare Rural Hospital Flexibility Program</inline>.—</heading><content>Section 1820 (42 U.S.C. 1395i–4) is amended to read as follows: <quotedContent> <level> <heading class="centered">“<inline class="smallCaps">medicare rural hospital flexibility program</inline></heading> <section> <num value="1820">“SEC. 1820.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Establishment</inline>.—</heading><content>Any State that submits an application in accordance with subsection (b) may establish a medicare rural hospital flexibility program described in subsection (c).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Application</inline>.—</heading><chapeau>A State may establish a medicare rural hospital flexibility program described in subsection (c) if the State submits to the Secretary at such time and in such form as the Secretary may require an application containing—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <chapeau>assurances that the State—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>has developed, or is in the process of developing, a State rural health care plan that—<page identifier="/us/stat/111/370">111 STAT. 370</page></chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>provides for the creation of 1 or more rural health networks (as defined in subsection (d)) in the State;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>promotes regionalization of rural health services in the State; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>improves access to hospital and other health services for rural residents of the State; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>has developed the rural health care plan described in subparagraph (A) in consultation with the hospital association of the State, rural hospitals located in the State, and the State Office of Rural Health (or, in the case of a State in the process of developing such plan, that assures the Secretary that the State will consult with its State hospital association, rural hospitals located in the State, and the State Office of Rural Health in developing such plan);</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>assurances that the State has designated (consistent with the rural health care plan described in paragraph (1)(A)), or is in the process of so designating, rural nonprofit or public hospitals or facilities located in the State as critical access hospitals; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>such other information and assurances as the Secretary may require.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Medicare Rural Hospital Flexibility Program Described</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>A State that has submitted an application in accordance with subsection (b), may establish a medicare rural hospital flexibility program that provides that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the State shall develop at least 1 rural health network (as defined in subsection (d)) in the State; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>at least 1 facility in the State shall be designated as a critical access hospital in accordance with paragraph (2).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">State designation of facilities</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>A State may designate 1 or more facilities as a critical access hospital in accordance with subparagraph (B).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Criteria for designation as critical access hospital</inline>.—</heading><chapeau>A State may designate a facility as a critical access hospital if the facility—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <chapeau>is a nonprofit or public hospital and is located in a county (or equivalent unit of local government) in a rural area (as defined in section 1886(d)(2)(D)) that—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>is located more than a 35-mile drive (or, in the case of mountainous terrain or in areas with only secondary roads available, a 15-mile drive) from a hospital, or another facility described in this subsection; or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>is certified by the State as being a necessary provider of health care services to residents in the area;</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>makes available 24-hour emergency care services that a State determines are necessary for ensuring access to emergency care services in each area served by a critical access hospital;<page identifier="/us/stat/111/371">111 STAT. 371</page></content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>provides not more than 15 (or, in the case of a facility under an agreement described in subsection (f), 25) acute care inpatient beds (meeting such standards as the Secretary may establish) for providing inpatient care for a period not to exceed 96 hours (unless a longer period is required because transfer to a hospital is precluded because of inclement weather or other emergency conditions), except that a peer review organization or equivalent entity may, on request, waive the 96-hour restriction on a case-by-case basis;</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <chapeau>meets such staffing requirements as would apply under section 1861(e) to a hospital located in a rural area, except that—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the facility need not meet hospital standards relating to the number of hours during a day, or days during a week, in which the facility must be open and fully staffed, except insofar as the facility is required to make available emergency care services as determined under clause (ii) and must have nursing services available on a 24-hour basis, but need not otherwise staff the facility except when an inpatient is present;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the facility may provide any services otherwise required to be provided by a full-time, on site dietitian, pharmacist, laboratory technician, medical technologist, and radiological technologist on a part-time, off site basis under arrangements as defined in section 1861(w)(1); and</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>the inpatient care described in clause (iii) may be provided by a physician assistant, nurse practitioner, or clinical nurse specialist subject to the oversight of a physician who need not be present in the facility; and</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>meets the requirements of section 1861(aa)(2)(I).</content></clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Definition of Rural Health Network</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In this section, the term ‘rural health network’ means, with respect to a State, an organization consisting of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>at least 1 facility that the State has designated or plans to designate as a critical access hospital; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>at least 1 hospital that furnishes acute care services.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Agreements</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Each critical access hospital that is a member of a rural health network shall have an agreement with respect to each item described in subparagraph (B) with at least 1 hospital that is a member of the network.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Items described</inline>.—</heading><chapeau>The items described in this subparagraph are the following:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>Patient referral and transfer.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>The development and use of communications systems including (where feasible)—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>telemetry systems; and<page identifier="/us/stat/111/372">111 STAT. 372</page></content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>systems for electronic sharing of patient data.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>The provision of emergency and non-emergency transportation among the facility and the hospital.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Credentialing and quality assurance</inline>.—</heading><chapeau>Each critical access hospital that is a member of a rural health network shall have an agreement with respect to credentialing and quality assurance with at least—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>1 hospital that is a member of the network;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>1 peer review organization or equivalent entity; or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>1 other appropriate and qualified entity identified in the State rural health care plan.</content></clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Certification by the Secretary</inline>.—</heading><chapeau>The Secretary shall certify a facility as a critical access hospital if the facility—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>is located in a State that has established a medicare rural hospital flexibility program in accordance with subsection (c);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>is designated as a critical access hospital by the State in which it is located; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>meets such other criteria as the Secretary may require.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Permitting Maintenance of Swing Beds</inline>.—</heading><content>Nothing in this section shall be construed to prohibit a State from designating or the Secretary from certifying a facility as a critical access hospital solely because, at the time the facility applies to the State for designation as a critical access hospital, there is in effect an agreement between the facility and the Secretary under section 1883 under which the facility’s inpatient hospital facilities are used for the provision of extended care services, so long as the total number of beds that may be used at any time for the furnishing of either such services or acute care inpatient services does not exceed 25 beds and the number of beds used at any time for acute care inpatient services does not exceed 15 beds. For purposes of the previous sentence, any bed of a unit of the facility that is licensed as a distinct-part skilled nursing facility at the time the facility applies to the State for designation as a critical access hospital shall not be counted.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Grants</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Medicare rural hospital flexibility program</inline>.—</heading><chapeau>The Secretary may award grants to States that have submitted applications in accordance with subsection (b) for—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>engaging in activities relating to planning and implementing a rural health care plan;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>engaging in activities relating to planning and implementing rural health networks; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>designating facilities as critical access hospitals.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Rural emergency medical services</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary may award grants to States that have submitted applications in accordance with subparagraph (B) for the establishment or expansion of a program for the provision of rural emergency medical services.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Application</inline>.—</heading><content>An application is in accordance with this subparagraph if the State submits to the Secretary at such time and in such form as the Secretary may require an application containing the assurances <page identifier="/us/stat/111/373">111 STAT. 373</page>described in subparagraphs (A)(ii), (A)(iii), and (B) of subsection (b)(1) and paragraph (3) of that subsection.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Grandfathering of Certain Facilities</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Any medical assistance facility operating in Montana and any rural primary care hospital designated by the Secretary under this section prior to the date of the enactment of the Balanced Budget Act of 1997 shall be deemed to have been certified by the Secretary under subsection (e) as a critical access hospital if such facility or hospital is otherwise eligible to be designated by the State as a critical access hospital under subsection (c).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Continuation of medical assistance facility and rural primary care hospital terms</inline>.—</heading><content>Notwithstanding any other provision of this title, with respect to any medical assistance facility or rural primary care hospital described in paragraph (1), any reference in this title to a ‘critical access hospital’ shall be deemed to be a reference to a ‘medical assistance facility’ or ‘rural primary care hospital’.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="i">“(i)</num> <heading><inline class="smallCaps">Waiver of Conflicting Part A Provisions</inline>.—</heading><content>The Secretary is authorized to waive such provisions of this part and part D as are necessary to conduct the program established under this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="j">“(j)</num> <heading><inline class="smallCaps">Authorization of Appropriations</inline>.—</heading><content>There are authorized to be appropriated from the Federal Hospital Insurance Trust Fund for making grants to all States under subsection (g), $25,000,000 in each of the fiscal years 1998 through 2002.”.</content> </subsection> </section> </level> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Report on Alternative to 96-Hour Rule</inline>.—</heading><content>Not later than June 1, 1998, the Secretary of Health and Human Services shall submit to Congress a report on the feasibility of, and administrative requirements necessary to establish an alternative for certain medical diagnoses (as determined by the Secretary) to the 96-hour limitation for inpatient care in critical access hospitals required by section 1820(c)(2)(B)(iii) of the Social Security Act (42 U.S.C. 1395i–4(c)(2)(B)(iii)), as added by subsection (a) of this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Conforming Amendments Relating to Rural Primary Care Hospitals And Critical Access Hospitals</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Title XI of the Social Security Act (42 U.S.C. 1301 et seq.) and title XVIII of that Act (42 U.S.C. 1395 et seq.) are each amended by striking “rural primary care” each place it appears and inserting “<quotedText>critical access</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><content>Section 1861(mm) of the Social Security Act (42 U.S.C. 1395x(mm)) is amended to read as follows: <quotedContent> <level> <heading class="centered">“<inline class="smallCaps">critical access hospital; critical access hospital services</inline></heading> <subsection class="indent0 fontsize10"> <num value="mm">“(mm)</num><paragraph class="inline"><num value="1">(1)</num> <content>The term ‘critical access hospital’ means a facility certified by the Secretary as a critical access hospital under section 1820(e).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2)</num> <content>The term ‘inpatient critical access hospital services’ means items and services, furnished to an inpatient of a critical access hospital by such facility, that would be inpatient hospital services if furnished to an inpatient of a hospital by a hospital.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3)</num> <content>The term ‘outpatient critical access hospital services’ means medical and other health services furnished by a critical access hospital on an outpatient basis.”.</content></paragraph> </subsection> </level> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Part a payment</inline>.—</heading><chapeau>Section 1814 of the Social Security Act (42 U.S.C. 1395f) is amended—<page identifier="/us/stat/111/374">111 STAT. 374</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in subsection (a)(8), by striking “<quotedText>72</quotedText>” and inserting “<quotedText>96</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by amending subsection (1) to read as follows: <quotedContent> <level> <heading class="centered">“Payment for Inpatient Critical Access Hospital Services</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>The amount of payment under this part for inpatient critical access hospital services is the reasonable costs of the critical access hospital in providing such services.”.</content></paragraph> </level> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Payment continued to designated eachs</inline>.—</heading><chapeau>Section 1886(d)(5)(D) of the Social Security Act (42 U.S.C. 1395ww(d)(5)(D)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in clause (iii)(III), by inserting “<quotedText>as in effect on September 30, 1997</quotedText>” before the period at the end; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>in clause (v)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by inserting “<quotedText>as in effect on September 30, 1997</quotedText>” after “1820(i)(1)”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking “<quotedText>1820(g)</quotedText>” and inserting “<quotedText>1820(d)</quotedText>”.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <heading><inline class="smallCaps">Part b payment</inline>.—</heading><content>Section 1834(g) of the Social Security Act (42 U.S.C. 1395m(g)) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Payment for Outpatient Critical Access Hospital Services</inline>.—</heading><content>The amount of payment under this part for outpatient critical access hospital services is the reasonable costs of the critical access hospital in providing such services.”.</content> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395i–4">42 USC 1395i–4 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Transition for MAF</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary of Health and Human Services shall provide for an appropriate transition for a facility that, as of the date of the enactment of this Act, operated as a limited service rural hospital under a demonstration described in section 4008(i)(1) of the Omnibus Budget Reconciliation Act of 1990 (42 U.S.C. 1395b–1 note) from such demonstration to the program established under subsection (a). At the conclusion of the transition period described in subparagraph (B), the Secretary shall end such demonstration.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Transition period described</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">(i)</num> <heading><inline class="smallCaps">Initial period</inline>.—</heading><content>Subject to clause (ii), the transition period described in this subparagraph is the period beginning on the date of the enactment of this Act and ending on October 1, 1998.</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <heading><inline class="smallCaps">Extension</inline>.—</heading><content>If the Secretary determines that the transition is not complete as of October 1, 1998, the Secretary shall provide for an appropriate extension of the transition period.</content></clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395f">42 USC 1395f note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to services furnished on or after October 1, 1997.</content> </subsection> </section> <section> <num value="4202">SEC. 4202.</num> <heading>PROHIBITING DENIAL OF REQUEST BY RURAL REFERRAL CENTERS FOR RECLASSIFICATION ON BASIS OF COMPARABILITY OF WAGES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 1886(d)(10)(D) (42 U.S.C. 1395ww(d)(10)(D)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by redesignating clause (iii) as clause (iv); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting after clause (ii) the following new clause: <quotedContent> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>Under the guidelines published by the Secretary under clause (i), in the case of a hospital which has ever been classified by the Secretary as a rural referral center under paragraph (5)(C), the Board may not reject the application of the hospital under <page identifier="/us/stat/111/375">111 STAT. 375</page>this paragraph on the basis of any comparison between the average hourly wage of the hospital and the average hourly wage of hospitals in the area in which it is located.”.</content></clause> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Continuing Treatment of Previously Designated Centers</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395ww">42 USC 1395ww note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Any hospital classified as a rural referral center by the Secretary of Health and Human Services under section 1886(d)(5)(C) of the Social Security Act for fiscal year 1991 shall be classified as such a rural referral center for fiscal year 1998 and each subsequent fiscal year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Budget neutrality</inline>.—</heading><content>The provisions of section 1886(d)(8)(D) of the Social Security Act shall apply to reclassifications made pursuant to paragraph (1) in the same manner as such provisions apply to a reclassification under section 1886(d)(10) of such Act.</content></paragraph> </subsection> </section> <section> <num value="4203">SEC. 4203.</num> <heading>HOSPITAL GEOGRAPHIC RECLASSIFICATION PERMITTED FOR PURPOSES OF DISPROPORTIONATE SHARE PAYMENT ADJUSTMENTS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395ww">42 USC 1395ww note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>For the period described in subsection (c), the Medicare Geographic Classification Review Board shall consider the application under section 1886(d)(10)(C)(i) of the Social Security Act (42 U.S.C. 1395ww(d)(10)(C)(i)) of a hospital described in 1886(d)(1)(B) of such Act (42 U.S.C. 1395ww(d)(1)(B)) to change the hospital’s geographic classification for purposes of determining for a fiscal year eligibility for and amount of additional payment amounts under section 1886(d)(5)(F) of such Act (42 U.S.C. 1395ww(d)(5)(F)).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Applicable Guidelines</inline>.—</heading><content>The Medicare Geographic Classification Review Board shall apply the guidelines established for reclassification under subclause (I) of section 1886(d)(10)(C)(i) of such Act to reclassification by reason of subsection (a) until the Secretary of Health and Human Services promulgates separate guidelines for such reclassification.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Period Described</inline>.—</heading><content>The period described in this subsection is the period beginning on the date of the enactment of this Act and ending 30 months after such date.</content> </subsection> </section> <section> <num value="4204">SEC. 4204.</num> <heading>MEDICARE-DEPENDENT, SMALL RURAL HOSPITAL PAYMENT EXTENSION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Special Treatment Extended</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Payment methodology</inline>.—</heading><chapeau>Section 1886(d)(5)(G) (42 U.S.C. 1395ww(d)(5)(G)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in clause (i), by striking “<quotedText>October 1, 1994,</quotedText>” and inserting “<quotedText>October 1, 1994, or beginning on or after October 1, 1997, and before October 1, 2001,</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in clause (ii)(II), by striking “<quotedText>October 1, 1994,</quotedText>” and inserting “<quotedText>October 1, 1994, or beginning on or after October 1, 1997, and before October 1, 2001,</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Extension of target amount</inline>.—</heading><chapeau>Section 1886(b)(3)(D) (42 U.S.C. 1395ww(b)(3)(D)) id amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in the matter preceding clause (i), by striking “<quotedText>September 30, 1994,</quotedText>” and inserting “<quotedText>September 30, 1994, and for cost reporting periods beginning on or after October 1, 1997, and before October 1, 2001,</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in clause (ii), by striking “<quotedText>and</quotedText>” at the end;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>in clause (iii), by striking the period at the end and inserting “<quotedText>, and</quotedText>”; and<page identifier="/us/stat/111/376">111 STAT. 376</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>by adding after clause (iii) the following new clause: <quotedContent> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>with respect to discharges occurring during fiscal year 1998 through fiscal year 2000, the target amount for the preceding year increased by the applicable percentage increase under subparagraph (B)(iv).”.</content></clause> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395ww">42 USC 1395ww note</ref>.</p></sidenote> <heading><inline class="smallCaps">Permitting hospitals to decline reclassification</inline>.—</heading><content>Section 13501(e)(2) of OBRA–93 (42 U.S.C. 1395ww note) is amended by striking “<quotedText>or fiscal year 1994</quotedText>” and inserting fiscal year “, 1994, fiscal year 1998, fiscal year 1999, or fiscal year 2000”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395ww">42 USC 1395ww note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by subsection (a) shall apply with respect to discharges occurring on or after October 1, 1997.</content> </subsection> </section> <section> <num value="4205">SEC. 4205.</num> <heading>RURAL HEALTH CLINIC SERVICES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Per-Visit Payment Limits for Provider-Based Clinics</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Extension of limit</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The matter in section 1833(f) (42 U.S.C. 13951(f)) preceding paragraph (1) is amended by striking “<quotedText>independent rural health clinics</quotedText>” and inserting “<quotedText>rural health clinics (other than such clinics in rural hospitals with less than 50 beds)</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395l">42 USC 1395<i>l</i> note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendment made by subparagraph (A) applies to services furnished on or after January 1, 1998.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Technical clarification</inline>.—</heading><content>Section 1833(f)(1) (42 U.S.C. 13951(f)(1)) is amended by inserting “<quotedText>per visit</quotedText>” after “$46”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Assurance of Quality Services</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subparagraph (I) of the first sentence of section 1861(aa)(2) (42 U.S.C. 1395x(aa)(2)) is amended to read as follows: <quotedContent> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>has a quality assessment and performance improvement program, and appropriate procedures for review of utilization of clinic services, as the Secretary may specify,”.</content></subclause> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendment made by paragraph (1) shall take effect on January 1, 1998.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Waiver of Certain Staffing Requirements Limited to Clinics in Program</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 1861(aa)(7)(B) (42 U.S.C. 1395x(aa)(7)(B)) is amended by inserting before the period “, or if the facility has not yet been determined to meet the requirements (including subparagraph (J) of the first sentence of paragraph (2)) of a rural health clinic”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendment made by paragraph (1) applies to waiver requests made on or after January 1, 1998.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Refinement of Shortage Area Requirements</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Designation reviewed triennially</inline>.—</heading><chapeau>Section 1861(aa)(2) (42 U.S.C. 1395x(aa)(2)) is amended in the second sentence, in the matter in clause (i) preceding subclause (I)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>and that is designated</quotedText>” and inserting “<quotedText>and that, within the previous 3-year period, has been designated</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking “<quotedText>or that is designated</quotedText>” and inserting “<quotedText>or designated</quotedText>”.<page identifier="/us/stat/111/377">111 STAT. 377</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Area must have shortage of health care practitioners</inline>.—</heading><chapeau>Section 1861(aa)(2) (42 U.S.C. 1395x(aa)(2)) as amended by paragraph (1), is further amended in the second sentence, in the matter in clause (i) preceding subclause (I)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking the comma after “personal health services”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by inserting “<quotedText>and in which there are insufficient numbers of needed health care practitioners (as determined by the Secretary),</quotedText>” after “Bureau of the Census)”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Previously qualifying clinics grandfathered only to prevent shortage</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 1861(aa)(2) of the Social Security Act (42 U.S.C. 1395x(aa)(2)) is amended in the third sentence by inserting before the period “if it is determined, in accordance with criteria established by the Secretary in regulations, to be essential to the delivery of primary care services that would otherwise be unavailable in the geographic area served by the clinic”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Payment for certain physician assistant services</inline>.—</heading><content>Section 1842(b)(6)(C) (42 U.S.C. 1395u(b)(6)(C)) is amended to read as follows: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>in the case of services described in clause (i) of section 1861(s)(2)(K), payment shall be made to either (i) the employer of the physician assistant involved, or (ii) with respect to a physician assistant who was the owner of a rural health clinic (as described in section 1861(aa)(2)) for a continuous period beginning prior to the date of the enactment of the Balanced Budget Act of 1997 and ending on the date that the Secretary determines such rural health clinic no longer meets the requirements of section 1861(aa)(2), for such services provided before January 1, 2003, payment may be made directly to the physician assistant; and”.</content></subparagraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Effective dates; implementing regulations</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x note</ref>.</p></sidenote> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as otherwise provided, the amendments made by the preceding paragraphs take effect on the date of the enactment of this Act.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Current rural health clinics</inline>.—</heading><content>The amendments made by the preceding paragraphs take effect, with respect to entities that are rural health clinics under title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) on the date of enactment of this Act, on the date of the enactment of this Act.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <heading><inline class="smallCaps">Grandfathered clinics</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendment made by paragraph (3)(A) shall take effect on the effective date of regulations issued by the Secretary under clause (ii).</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <heading><inline class="smallCaps">Regulations</inline>.—</heading><content>The Secretary shall issue final regulations implementing paragraph (3)(A) that shall take effect no later than January 1, 1999.</content></clause> </subparagraph> </paragraph> </subsection> </section> <section> <num value="4206">SEC. 4206.</num> <heading>MEDICARE REIMBURSEMENT FOR TELEHEALTH SERVICES.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395l">42 USC 1395<i>l</i> note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Not later than January 1, 1999, the Secretary note of Health and Human Services shall make payments from the Federal Supplementary Medical Insurance Trust Fund under part B of title XVIII of the Social Security Act (42 U.S.C. 1395j et seq.) in accordance with the methodology described in subsection <page identifier="/us/stat/111/378">111 STAT. 378</page>(b) for professional consultation via telecommunications systems with a physician (as defined in section 1861(r) of such Act (42 U.S.C. 1395x(r)) or a practitioner (described in section 1842(b)(18)(C) of such Act (42 U.S.C. 1395u(b)(18)(C)) furnishing a service for which payment may be made under such part to a beneficiary under the medicare program residing in a county in a rural area (as defined in section 1886(d)(2)(D) of such Act (42 U.S.C. 1395ww(d)(2)(D))) that is designated as a health professional shortage area under section 332(a)(1)(A) of the Public Health Service Act (42 U.S.C. 254e(a)(1)(A)), notwithstanding that the individual physician or practitioner providing the professional consultation is not at the same location as the physician or practitioner furnishing the service to that beneficiary.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Methodology for Determining Amount of Payments</inline>.—</heading><chapeau>Taking into account the findings of the report required under section 192 of the Health Insurance Portability and Accountability Act of 1996 (Public Law 104–191; 110 Stat. 1988), the findings of the report required under paragraph (c), and any other findings related to the clinical efficacy and cost-effectiveness of telehealth applications, the Secretary shall establish a methodology for determining the amount of payments made under subsection (a) within the following parameters:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>The payment shall shared between the referring physician or practitioner and the consulting physician or practitioner. The amount of such payment shall not be greater than the current fee schedule of the consulting physician or practitioner for the health care services provided.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>The payment shall not include any reimbursement for any telephone line charges or any facility fees, and a beneficiary may not be billed for any such charges or fees.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>The payment shall be made subject to the coinsurance and deductible requirements under subsections (a)(1) and (b) of section 1833 of the Social Security Act (42 U.S.C. 13951).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>The payment differential of section 1848(a)(3) of such Act (42 U.S.C. 1395w–4(a)(3)) shall apply to services furnished by non-participating physicians. The provisions of section 1848(g) of such Act (42 U.S.C. 1395w–4(g)) and section 1842(b)(18) of such Act (42 U.S.C. 1395u(b)(18)) shall apply. Payment for such service shall be increased annually by the update factor for physicians’ services determined under section 1848(d) of such Act (42 U.S.C. 1395w–4(d)).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Supplemental Report</inline>.—</heading><chapeau>Not later than January 1, 1999, the Secretary shall submit a report to Congress which shall contain a detailed analysis of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>how telemedicine and telehealth systems are expanding access to health care services;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>the clinical efficacy and cost-effectiveness of telemedicine and telehealth applications;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>the quality of telemedicine and telehealth services delivered; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>the reasonable cost of telecommunications charges incurred in practicing telemedicine and telehealth in rural, frontier, and underserved areas.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Expansion of Telehealth Services for Certain Medicare Beneficiaries</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Not later than January 1, 1999, the Secretary shall submit a report to Congress that examines the <page identifier="/us/stat/111/379">111 STAT. 379</page>possibility of making payments from the Federal Supplementary Medical Insurance Trust Fund under part B of title XVIII of the Social Security Act (42 U.S.C. 1395j et seq.) for professional consultation via telecommunications systems with such a physician or practitioner furnishing a service for which payment may be made under such part to a beneficiary described in paragraph (2), notwithstanding that the individual physician or practitioner providing the professional consultation is not at the same location as the physician or practitioner furnishing the service to that beneficiary.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Beneficiary described</inline>.—</heading><content>A beneficiary described in this paragraph is a beneficiary under the medicare program under title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) who does not reside in a rural area (as so defined) that is designated as a health professional shortage area under section 332(a)(1)(A) of the Public Health Service Act (42 U.S.C. 254e(a)(1)(A)), who is homebound or nursing homebound, and for whom being transferred for health care services imposes a serious hardship.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Report</inline>.—</heading><content>The report described in paragraph (1) shall contain a detailed statement of the potential costs and savings to the medicare program of making the payments described in that paragraph using various reimbursement schemes.</content></paragraph> </subsection> </section> <section> <num value="4207">SEC. 4207.</num> <heading>INFORMATICS, TELEMEDICINE, AND EDUCATION DEMONSTRATION PROJECT.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395b–1">42 USC 1395b–1 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Purpose and Authorization</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Not later than 9 months after the date of enactment of this section, the Secretary of Health and Human Services shall provide for a demonstration project described in paragraph (2).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Description of project</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The demonstration project described in this paragraph is a single demonstration project to use eligible health care provider telemedicine networks to apply high-capacity computing and advanced networks to improve primary care (and prevent health care complications) to medicare beneficiaries with diabetes mellitus who are residents of medically underserved rural areas or residents of medically underserved inner-city areas.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Medically underserved defined</inline>.—</heading><content>As used in this paragraph, the term “medically underserved” has the meaning given such term in section 330(b)(3) of the Public Health Service Act (42 U.S.C. 254b(b)(3)).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Waiver</inline>.—</heading><content>The Secretary shall waive such provisions of title XVIII of the Social Security Act as may be necessary to provide for payment for services under the project in accordance with subsection (d).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Duration of project</inline>.—</heading><content>The project shall be conducted over a 4-year period.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Objectives of Project</inline>.—</heading><chapeau>The objectives of the project include the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Improving patient access to and compliance with appropriate care guidelines for individuals with diabetes mellitus through direct telecommunications link with information networks in order to improve patient quality-of-life and reduce overall health care costs.<page identifier="/us/stat/111/380">111 STAT. 380</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Developing a curriculum to train health professionals (particularly primary care health professionals) in the use of medical informatics and telecommunications.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Demonstrating the application of advanced technologies, such as video-conferencing from a patient’s home, remote monitoring of a patient’s medical condition, interventional informatics, and applying individualized, automated care guidelines, to assist primary care providers in assisting patients with diabetes in a home setting.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>Application of medical informatics to residents with limited English language skills.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>Developing standards in the application of telemedicine and medical informatics.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>Developing a model for the cost-effective delivery of primary and related care both in a managed care environment and in a fee-for-service environment.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Eligible Health Care Provider Telemedicine Network Defined</inline>.—</heading><chapeau>For purposes of this section, the term “eligible health care provider telemedicine network” means a consortium that includes at least one tertiary care hospital (but no more than 2 such hospitals), at least one medical school, no more than 4 facilities in rural or urban areas, and at least one regional telecommunications provider and that meets the following requirements:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>The consortium is located in an area with a high concentration of medical schools and tertiary care facilities in the United States and has appropriate arrangements (within or outside the consortium) with such schools and facilities, universities, and telecommunications providers, in order to conduct the project.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>The consortium submits to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including a description of the use to which the consortium would apply any amounts received under the project and the source and amount of non-Federal funds used in the project.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>The consortium guarantees that it will be responsible for payment for all costs of the project that are not paid under this section and that the maximum amount of payment that may be made to the consortium under this section shall not exceed the amount specified in subsection (d)(3).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Coverage as Medicare Part B Services</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subject to the succeeding provisions of this subsection, services related to the treatment or management of (including prevention of complications from) diabetes for medicare beneficiaries furnished under the project shall be considered to be services covered under part B of title XVIII of the Social Security Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Payments</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subject to paragraph (3), payment for such services shall be made at a rate of 50 percent of the costs that are reasonable and related to the provision of such services. In computing such costs, the Secretary shall include costs described in subparagraph (B), but may not include costs described in subparagraph (C).<page identifier="/us/stat/111/381">111 STAT. 381</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Costs that may be included</inline>.—</heading><chapeau>The costs described in this subparagraph are the permissible costs (as recognized by the Secretary) for the following:</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>The acquisition of telemedicine equipment for use in patients’ homes (but only in the case of patients located in medically underserved areas).</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>Curriculum development and training of health professionals in medical informatics and telemedicine.</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>Payment of telecommunications costs (including salaries and maintenance of equipment), including costs of telecommunications between patients’ homes and the eligible network and between the network and other entities under the arrangements described in subsection (c)(1).</content></clause> <clause class="indent3 fontsize10"><num value="iv">(iv)</num> <content>Payments to practitioners and providers under the medicare programs.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <heading><inline class="smallCaps">Costs not included</inline>.—</heading><chapeau>The costs described in this subparagraph are costs for any of the following:</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>The purchase or installation of transmission equipment (other than such equipment used by health professionals to deliver medical informatics services under the project).</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>The establishment or operation of a telecommunications common carrier network.</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>Construction (except for minor renovations related to the installation of reimbursable equipment) or the acquisition or building of real property.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Limitation</inline>.—</heading><content>The total amount of the payments that may be made under this section shall not exceed $30,000,000 for the period of the project (described in subsection (a)(4)).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Limitation on cost-sharing</inline>.—</heading><content>The project may not impose cost sharing on a medicare beneficiary for the receipt of services under the project in excess of 20 percent of the costs that are reasonable and related to the provision of such services.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Reports</inline>.—</heading><content>The Secretary shall submit to the Committee on Ways and Means and the Committee Commerce of the House of Representatives and the Committee on Finance of the Senate interim reports on the project and a final report on the project within 6 months after the conclusion of the project. The final report shall include an evaluation of the impact of the use of telemedicine and medical informatics on improving access of medicare beneficiaries to health care services, on reducing the costs of such services, and on improving the quality of life of such beneficiaries.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Interventional informatics</inline>.—</heading><content>The term “interventional informatics” means using information technology and virtual reality technology to intervene in patient care.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Medical informatics</inline>.—</heading><content>The term “medical informatics” means the storage, retrieval, and use of biomedical and related information for problem solving and decision-making through computing and communications technologies.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Project</inline>.—</heading><content>The term “project” means the demonstration project under this section.<page identifier="/us/stat/111/382">111 STAT. 382</page></content></paragraph> </subsection> </section> </subtitle> <subtitle> <num value="D">Subtitle D—</num><heading>Anti-Fraud and Abuse Provisions and Improvements in Protecting Program Integrity</heading> <chapter> <num value="1">CHAPTER 1—</num><heading>REVISIONS TO SANCTIONS FOR FRAUD AND ABUSE</heading> <section> <num value="4301">SEC. 4301.</num> <heading>PERMANENT EXCLUSION FOR THOSE CONVICTED OF 3 HEALTH CARE RELATED CRIMES.</heading> <chapeau>Section 1128(c)(3) (42 U.S.C. 1320a–7(c)(3)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subparagraph (A), by inserting “<quotedText>or in the case described in subparagraph (G)</quotedText>” after “subsection (b)(12)”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subparagraphs (B) and (D), by striking “<quotedText>In the case</quotedText>” and inserting “<quotedText>Subject to subparagraph (G), in the case</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <chapeau>In the case of an exclusion of an individual under subsection (a) based on a conviction occurring on or after the date of the enactment of this subparagraph, if the individual has (before, on, or after such date) been convicted—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>on one previous occasion of one or more offenses for which an exclusion may be effected under such subsection, the period of the exclusion shall be not less than 10 years, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>on 2 or more previous occasions of one or more offenses for which an exclusion may be effected under such subsection, the period of the exclusion shall be permanent.”.</content></clause> </subparagraph> </quotedContent> </content></paragraph> </section> <section> <num value="4302">SEC. 4302.</num> <heading>AUTHORITY TO REFUSE TO ENTER INTO MEDICARE AGREEMENTS WITH INDIVIDUALS OR ENTITIES CONVICTED OF FELONIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Medicare Part A</inline>.—</heading><chapeau>Section 1866(b)(2) (42 U.S.C. 1395cc(b)(2)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subparagraph (B), by striking “<quotedText>or</quotedText>” at the end;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subparagraph (C), by striking the period at the end and inserting “<quotedText>, or</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">”(D)</num> <content>has ascertained that the provider has been convicted of a felony under Federal or State law for an offense which the Secretary determines is detrimental to the best interests of the program or program beneficiaries.”.</content></subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Medicare Part B</inline>.—</heading><content>Section 1842(h) (42 U.S.C. 1395u(h)) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <content>The Secretary may refuse to enter into an agreement with a physician or supplier under this subsection, or may terminate or refuse to renew such agreement, in the event that such physician or supplier has been convicted of a felony under Federal or State law for an offense which the Secretary determines is detrimental to the best interests of the program or program beneficiaries.”.</content></paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395u">42 USC 1395u note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall take effect on the date of the enactment of this Act and apply to the entry and renewal of contracts on or after such date.</content> </subsection> </section> <section> <num value="4303">SEC. 4303.</num> <heading>EXCLUSION OF ENTITY CONTROLLED BY FAMILY MEMBER OF A SANCTIONED INDIVIDUAL.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 1128 (42 U.S.C. 1320a–7) is amended—<page identifier="/us/stat/111/383">111 STAT. 383</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in subsection (b)(8)(A)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in clause (i), by striking “<quotedText>or</quotedText>” at the end;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in clause (ii), by striking the dash at the end and inserting “<quotedText>; or</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by inserting after clause (ii) the following: <quotedContent> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>who was described in clause (i) but is no longer so described because of a transfer of ownership or control interest, in anticipation of (or following) a conviction, assessment, or exclusion described in subparagraph (B) against the person, to an immediate family member (as defined in subsection (j)(1)) or a member of the household of the person (as defined in subsection (j)(2)) who continues to maintain an interest described in such clause—”; and</content></clause> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="j">“(j)</num> <heading><inline class="smallCaps">Definition of immediate family member and member of household</inline>.—</heading><chapeau>For purposes of subsection (b)(8)(A)(iii):</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <chapeau>The term ‘immediate family member’ means, with respect to a person—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the husband or wife of the person;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the natural or adoptive parent, child, or sibling of the person;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>the stepparent, stepchild, stepbrother, or stepsister of the person;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>the father-, mother-, daughter-, son-, brother-, or sister-in-law of the person;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>the grandparent or grandchild of the person; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>the spouse of a grandparent or grandchild of the person.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>The term ‘member of the household’ means, with respect to any person, any individual sharing a common abode as part of a single family unit with the person, including domestic employees and others who live together as a family unit, but not including a roomer or boarder.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320a–7">42 USC 1320a–7 note</ref>.</p></sidenote> shall take effect on the date that is 45 days after the date of note the enactment of this Act.</content> </subsection> </section> <section> <num value="4304">SEC. 4304.</num> <heading>IMPOSITION OF CIVIL MONEY PENALTIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Civil Money Penalties for Persons That Contract With Excluded Individuals</inline>.—</heading><chapeau>Section 1128A(a) (42 U.S.C. 1320a–7a(a)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in paragraph (4), by striking “<quotedText>or</quotedText>” at the end;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in paragraph (5), by adding “<quotedText>or</quotedText>” at the end; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by inserting after paragraph (5) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>arranges or contracts (by employment or otherwise) with an individual or entity that the person knows or should know is excluded from participation in a Federal health care program (as defined in section 1128B(f)), for the provision of items or services for which payment may be made under such a program;”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Civil Money Penalties for Kickbacks</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Permitting secretary to impose civil money penalty</inline>.—</heading><chapeau>Section 1128A(a) (42 U.S.C. 1320a–7a(a)), as amended by subsection (a), is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in paragraph (5), by striking “<quotedText>or</quotedText>” at the end;<page identifier="/us/stat/111/384">111 STAT. 384</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in paragraph (6), by adding “<quotedText>or</quotedText>” at the end; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by adding after paragraph (6) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <content>commits an act described in paragraph (1) or (2) of section 1128B(b);”.</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Description of civil money penalty applicable</inline>.—</heading><chapeau>Section 1128A(a) (42 U.S.C. 1320a–7a(a)), as amended by paragraph (1), is amended in the matter following paragraph (7)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>occurs).</quotedText>” and inserting “<quotedText>occurs; or in cases under paragraph (7), $50,000 for each such act).</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by inserting after “<quotedText>of such claim</quotedText>” the following: “(or, in cases under paragraph (7), damages of not more than 3 times the total amount of remuneration offered, paid, solicited, or received, without regard to whether a portion of such remuneration was offered, paid, solicited, or received for a lawful purpose)”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320a–7a">42 USC 1320a–7a note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Contracts with excluded persons</inline>.—</heading><content>The amendments made by subsection (a) shall apply to arrangements and contracts entered into after the date of the enactment of this Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Kickbacks</inline>.—</heading><content>The amendments made by subsection (b) shall apply to acts committed after the date of the enactment of this Act.</content></paragraph> </subsection> </section> </chapter> <chapter> <num value="2">CHAPTER 2—</num><heading>IMPROVEMENTS IN PROTECTING PROGRAM INTEGRITY</heading> <section> <num value="4311">SEC. 4311.</num> <heading>IMPROVING INFORMATION TO MEDICARE BENEFICIARIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Inclusion of Information Regarding Medicare Waste, Fraud, and Abuse in Annual Notice</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 1804 (42 U.S.C. 1395b–2) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <chapeau>The notice provided under subsection (a) shall include—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>a statement which indicates that because errors do occur and because medicare fraud, waste, and abuse is a significant problem, beneficiaries should carefully check any explanation of benefits or itemized statement furnished pursuant to section 1806 for accuracy and report any errors or questionable charges by calling the toll-free phone number described in paragraph (4);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>a statement of the beneficiary’s right to request an itemized statement for medicare items and services (as provided in section 1806(b));</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>a description of the program to collect information on medicare fraud and abuse established under section 203(b) of the Health Insurance Portability and Accountability Act of 1996; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>a toll-free telephone number maintained by the Inspector General in the Department of Health and Human Services for the receipt of complaints and information about waste, fraud, and abuse in the provision or billing of services under this title.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395b–2">42 USC 1395b–2 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendment made by this subnote-section shall apply to notices provided on or after January 1, 1998.<page identifier="/us/stat/111/385">111 STAT. 385</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Clarification of Requirement to Provide Explanation of Medicare Benefits</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Title XVIII is amended by inserting after section 1805 (as added by section 4022) the following new section: <quotedContent> <level> <heading class="centered">“<inline class="smallCaps">explanation of medicare benefits</inline></heading> <section> <num value="1806">“<inline class="smallCaps">Sec</inline>. 1806.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>The Secretary shall furnish to<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395b–7">42 USC 1395b–7</ref>.</p></sidenote> each individual for whom payment has been made under this title (or would be made without regard to any deductible) a statement which—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>lists the item or service for which payment has been made and the amount of such payment for each item or service; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>includes a notice of the individual’s right to request an itemized statement (as provided in subsection (b)).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Request for Itemized Statement for Medicare Items and Services</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>An individual may submit a written request to any physician, provider, supplier, or any other person (including an organization, agency, or other entity) for an itemized statement for any item or service provided to such individual by such person with respect to which payment has been made under this title.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">30-day period to furnish statement</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Not later than 30 days after the date on which a request under paragraph (1) has been made, a person described in such paragraph shall furnish an itemized statement describing each item or service provided to the individual requesting the itemized statement.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Penalty</inline>.—</heading><content>Whoever knowingly fails to furnish an itemized statement in accordance with subparagraph (A) shall be subject to a civil money penalty of not more than $100 for each such failure. Such penalty shall be imposed and collected in the same manner as civil money penalties under subsection (a) of section 1128A are imposed and collected under that section.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Review of itemized statement</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Not later than 90 days after the receipt of an itemized statement furnished under paragraph (1), an individual may submit a written request for a review of the itemized statement to the Secretary.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Specific allegations</inline>.—</heading><chapeau>A request for a review of the itemized statement shall identify—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>specific items or services that the individual believes were not provided as claimed, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>any other billing irregularity (including duplicate billing).</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Findings of secretary</inline>.—</heading><content>The Secretary shall, with respect to each written request submitted under paragraph (3), determine whether the itemized statement identifies specific items or services that were not provided as claimed or any other billing irregularity (including duplicate billing) that has resulted in unnecessary payments under this title.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Recovery of amounts</inline>.—</heading><content>The Secretary shall take all appropriate measures to recover amounts unnecessarily paid <page identifier="/us/stat/111/386">111 STAT. 386</page>under this title with respect to a statement described in paragraph (4).”.</content></paragraph> </subsection> </section> </level> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conforming amendment</inline>.—</heading><content>Subsection (a) of section 203 of the Health Insurance Portability and Accountability <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395b–5">42 USC 1395b–5</ref>.</p></sidenote>Act of 1996 is repealed.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395b–7">42 USC 1395b–7 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective dates</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">Statement by secretary</inline>.—</heading><content>Paragraph (1) of section 1806(a) of the Social Security Act, as added by paragraph (1), and the repeal made by paragraph (2) shall take effect on the date of the enactment of this Act.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Itemized statement</inline>.—</heading><content>Paragraph (2) of section 1806(a) and section 1806(b) of the Social Security Act, as so added, shall take effect not later than January 1, 1999.</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="4312">SEC. 4312.</num> <heading>DISCLOSURE OF INFORMATION AND SURETY BONDS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Disclosure of Information and Surety Bond Requirement for Suppliers of Durable Medical Equipment</inline>.—</heading><content>Section 1834(a) (42 U.S.C. 1395m(a)) is amended by inserting after paragraph (15) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="16">“(16)</num> <heading><inline class="smallCaps">Disclosure of information and surety bond</inline>.—</heading><chapeau>The Secretary shall not provide for the issuance (or renewal) of a provider number for a supplier of durable medical equipment, for purposes of payment under this part for durable medical equipment furnished by the supplier, unless the supplier provides the Secretary on a continuing basis—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>with—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>full and complete information as to the identity of each person with an ownership or control interest (as defined in section 1124(a)(3)) in the supplier or in any subcontractor (as defined by the Secretary in regulations) in which the supplier directly or indirectly has a 5 percent or more ownership interest; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>to the extent determined to be feasible under regulations of the Secretary, the name of any disclosing entity (as defined in section 1124(a)(2)) with respect to which a person with such an ownership or control interest in the supplier is a person with such an ownership or control interest in the disclosing entity; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>with a surety bond in a form specified by the Secretary and in an amount that is not less than $50,000. The Secretary may waive the requirement of a bond under subparagraph (B) in the case of a supplier that provides a comparable surety bond under State law.”.</content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Surety Bond Requirement for Home Health Agencies</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Section 1861(o) (42 U.S.C. 1395x(o)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in paragraph (6), by striking “<quotedText>and</quotedText>” at the end;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by redesignating paragraph (7) as paragraph (8);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by inserting after paragraph (6) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <content>provides the Secretary on a continuing basis with a surety bond in a form specified by the Secretary and in an amount that is not less than $50,000; and”; and<page identifier="/us/stat/111/387">111 STAT. 387</page></content></paragraph> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>by adding at the end the following: “<quotedText>The Secretary may waive the requirement of a surety bond under paragraph (7) in the case of an agency or organization that provides a comparable surety bond under State law.</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading><chapeau>Section 1861(v)(1)(H) (42 U.S.C. 1395x(v)(1)(H)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in clause (i), by striking “<quotedText>the financial security requirement described in subsection (o)(7)</quotedText>” and inserting “<quotedText>the surety bond requirement described in subsection (o)(7) and the financial security requirement described in subsection (o)(8)</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in clause (ii), by striking “<quotedText>the financial security requirement described in subsection (o)(7) applies</quotedText>” and inserting “<quotedText>the surety bond requirement described in subsection (o)(7) and the financial security requirement described in subsection (o)(8) apply</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Reference to current disclosure requirement</inline>.—</heading><content>For additional provisions requiring home health agencies to disclose information on ownership and control interests, see section 1124 of the Social Security Act (42 U.S.C. 1320a–3).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Authorizing Application of Disclosure and Surety Bond Requirements to Other Health Care Providers</inline>.—</heading><content>Section 1834(a)(16) (42 U.S.C. 1395m(a)(16)), as added by subsection (a), is amended by adding at the end the following: “<quotedText>The Secretary, at the Secretary’s discretion, may impose the requirements of the first sentence with respect to some or all providers of items or services under part A or some or all suppliers or other persons (other than physicians or other practitioners, as defined in section 1842(b)(18)(C)) who furnish items or services under this part.</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Application to Comprehensive Outpatient Rehabilitation Facilities (CORFs)</inline>.—</heading><chapeau>Section 1861(cc)(2) (42 U.S.C. 1395x(cc)(2)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subparagraph (H), by striking “<quotedText>and</quotedText>” at the end;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by redesignating subparagraph (I) as subparagraph (J);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by inserting after subparagraph (H) the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="I">“(I)</num> <content>provides the Secretary on a continuing basis with a surety bond in a form specified by the Secretary and in an amount that is not less than $50,000; and”; and</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>by adding at the end the following flush sentence: “The Secretary may waive the requirement of a surety bond under subparagraph (I) in the case of a facility that provides a comparable surety bond under State law.”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Application to Rehabilitation Agencies</inline>.—</heading><chapeau>Section 1861(p) (42 U.S.C. 1395x(p)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in paragraph (4)(A)(v), by inserting after “<quotedText>as the Secretary may find necessary,</quotedText>” the following: “and provides the Secretary on a continuing basis with a surety bond in a form specified by the Secretary and in an amount that is not less than $50,000,”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following: “<quotedText>The Secretary may waive the requirement of a surety bond under paragraph (4)(A)(v) in the case of a clinic or agency that provides a comparable surety bond under State law.</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Suppliers of durable medical equipment</inline>.—</heading><content>The<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395m">42 USC 1395m note</ref>.</p></sidenote> amendment made by subsection (a) shall apply to suppliers <page identifier="/us/stat/111/388">111 STAT. 388</page>of durable medical equipment with respect to such equipment furnished on or after January 1, 1998.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x note</ref>.</p></sidenote> <heading><inline class="smallCaps">Home health agencies</inline>.—</heading><content>The amendments made by subsection (b) shall apply to home health agencies with respect to services furnished on or after January 1, 1998. The Secretary of Health and Human Services shall modify participation agreements under section 1866(a)(1) of the Social Security Act (42 U.S.C. 1395cc(a)(1)) with respect to home health agencies to provide for implementation of such amendments on a timely basis.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395m">42 USC 1395m note</ref>.</p></sidenote> <heading><inline class="smallCaps">Other amendments</inline>.—</heading><content>The amendments made by subsections (c) through (e) shall take effect on the date of the enactment of this Act and may be applied with respect to items and services furnished on or after January 1, 1998.</content></paragraph> </subsection> </section> <section> <num value="4313">SEC. 4313.</num> <heading>PROVISION OF CERTAIN IDENTIFICATION NUMBERS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Requirements to Disclose Employer Identification Numbers (EINS) and Social Security Account Numbers (SSNs)</inline>.—</heading><content>Section 1124(a)(1) (42 U.S.C. 1320a–3(a)(1)) is amended by inserting before the period at the end the following: “and supply the Secretary with the both the employer identification number (assigned pursuant to section 6109 of the Internal Revenue Code of 1986) and social security account number (assigned under section 205(c)(2)(B)) of the disclosing entity, each person with an ownership or control interest (as defined in subsection (a)(3)), and any subcontractor in which the entity directly or indirectly has a 5 percent or more ownership interest.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Other Medicare Providers</inline>.—</heading><chapeau>Section 1124A (42 U.S.C. 1320a–3a) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in subsection (a)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in paragraph (1), by striking “<quotedText>and</quotedText>” at the end;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in paragraph (2), by striking the period at the end and inserting “<quotedText>; and</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>including the employer identification number (assigned pursuant to section 6109 of the Internal Revenue Code of 1986) and social security account number (assigned under section 205(c)(2)(B)) of the disclosing part B provider and any person, managing employee, or other entity identified or described under paragraph (1) or (2).”; and</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subsection (c)(1), by inserting “<quotedText>(or, for purposes of subsection (a)(3), any entity receiving payment)</quotedText>” after “on an assignment-related basis”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Verification By Social Security Administration (SSA)</inline>.—</heading><chapeau>Section 1124A (42 U.S.C. 1320a–3a), as amended by subsection (b), is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by redesignating subsection (c) as subsection (d); and (2) by inserting after subsection (b) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Verification</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Transmittal by hhs</inline>.—</heading><chapeau>The Secretary shall transmit—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>to the Commissioner of Social Security information concerning each social security account number (assigned under section 205(c)(2)(B)), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>to the Secretary of the Treasury information concerning each employer identification number (assigned <page identifier="/us/stat/111/389">111 STAT. 389</page>pursuant to section 6109 of the Internal Revenue Code of 1986),</content></subparagraph> <continuation class="indent0 fontsize10">supplied to the Secretary pursuant to subsection (a)(3) or section 1124(c) to the extent necessary for verification of such information in accordance with paragraph (2).</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Verification</inline>.—</heading><content>The Commissioner of Social Security and the Secretary of the Treasury shall verify the accuracy of, or correct, the information supplied by the Secretary to such official pursuant to paragraph (1), and shall report such verifications or corrections to the Secretary.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Fees for verification</inline>.—</heading><content>The Secretary shall reimburse the Commissioner and Secretary of the Treasury, at a rate negotiated between the Secretary and such official, for the costs incurred by such official in performing the verification and correction services described in this subsection.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Report</inline>.—</heading><content>Before the amendments made by this section may<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320a–3">42 USC 1320a–3 note</ref>.</p></sidenote> become effective, the Secretary of Health and Human Services shall submit to Congress a report on steps the Secretary has taken to assure the confidentiality of social security account numbers that will be provided to the Secretary under such amendments.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320a–3">42 USC 1320a–3 note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Disclosure requirements</inline>.—</heading><content>The amendment made by subsection (a) shall apply to the application of conditions of participation, and entering into and renewal of contracts and agreements, occurring more than 90 days after the date of submission of the report under subsection (d).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Other providers</inline>.—</heading><content>The amendments made by subsection (b) shall apply to payment for items and services furnished more than 90 days after the date of submission of such report.</content></paragraph> </subsection> </section> <section> <num value="4314">SEC. 4314.</num> <heading>ADVISORY OPINIONS REGARDING CERTAIN PHYSICIAN SELF-REFERRAL PROVISIONS.</heading> <content>Section 1877(g) (42 U.S.C. 1395nn(g)) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Advisory opinions</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall issue written advisory opinions concerning whether a referral relating to designated health services (other than clinical laboratory services) is prohibited under this section. Each advisory opinion issued by the Secretary shall be binding as to the Secretary and the party or parties requesting the opinion.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Application of certain rules</inline>.—</heading><content>The Secretary shall, to the extent practicable, apply the rules under subsections (b)(3) and (b)(4) and take into account the regulations promulgated under subsection (b)(5) of section 1128D in the issuance of advisory opinions under this paragraph.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Regulations</inline>.—</heading><content>In order to implement this paragraph in a timely manner, the Secretary may promulgate regulations that take effect on an interim basis, after notice and pending opportunity for public comment.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Applicability</inline>.—</heading><content>This paragraph shall apply to requests for advisory opinions made after the date which is 90 days after the date of the enactment of this paragraph and before the close of the period described m section 1128D(b)(6).”.<page identifier="/us/stat/111/390">111 STAT. 390</page></content></subparagraph> </paragraph> </quotedContent> </content></section> <section> <num value="4315">SEC. 4315.</num> <heading>REPLACEMENT OF REASONABLE CHARGE METHODOLOGY BY FEE SCHEDULES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Application of Fee Schedule</inline>.—</heading><content>Section 1842 (42 U.S.C. 1395u) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="s">“(s)</num><paragraph class="inline"><num value="1">(1)</num> <content>The Secretary may implement a statewide or other areawide fee schedule to be used for payment of any item or service described in paragraph (2) which is paid on a reasonable charge basis. Any fee schedule established under this paragraph for such item or service shall be updated each year by the percentage increase in the consumer price index for all urban consumers (United States city average) for the 12-month period ending with June of the preceding year, except that in no event shall a fee schedule for an item described in paragraph (2)(D) be updated before 2003.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2)</num> <chapeau>The items and services described in this paragraph are as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Medical supplies.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Home dialysis supplies and equipment (as defined in section 1881(b)(8)).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>Therapeutic shoes.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>Parenteral and enteral nutrients, equipment, and supplies.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>Electromyogram devices</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>Salivation devices.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <content>Blood products.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num> <content>Transfusion medicine.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><chapeau>Section 1833(a)(1) (42 U.S.C. 13951(a)(1)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>and (P)</quotedText>” and inserting “<quotedText>(P)</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking the semicolon at the end and inserting the following: “, and (Q) with respect to items or services for which fee schedules are established pursuant to section 1842(s), the amounts paid shall be 80 percent of the lesser of the actual charge or the fee schedule established in such section;”.</content></subparagraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395l">42 USC 1395<i>l</i> note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading><content>The amendments made by this section to the extent such amendments substitute fee schedules for reasonable charges, shall apply to particular services as of the date specified by the Secretary of Health and Human Services.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395u">42 USC 1395u note</ref>.</p></sidenote> <heading><inline class="smallCaps">Initial Budget Neutrality</inline>.—</heading><content>The Secretary, in developing a fee schedule for particular services (under the amendments made by this section), shall set amounts for the first year period to which the fee schedule applies at a level so that the total payments under title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) for those services for that year period shall be approximately equal to the estimated total payments if such fee schedule had not been implemented.</content> </subsection> </section> <section> <num value="4316">SEC. 4316.</num> <heading>APPLICATION OF INHERENT REASONABLENESS TO ALL PART B SERVICES OTHER THAN PHYSICIANS’ SERVICES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Paragraphs (8) and (9) of section 1842(b) (42 U.S.C. 1395u(b)) are amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote><subparagraph class="inline"><num value="A">(A)</num><clause class="inline"><num value="i">(i)</num> <chapeau>The Secretary shall by regulation—</chapeau> <subclause class="indent2 fontsize10"><num value="I">“(I)</num> <content>describe the factors to be used in determining the cases (of particular items or services) in which the application of this part (other than to physicians’ services paid under <page identifier="/us/stat/111/391">111 STAT. 391</page>section 1848) results in the determination of an amount that, because of its being grossly excessive or grossly deficient, is not inherently reasonable, and</content></subclause> <subclause class="indent2 fontsize10"><num value="II">“(II)</num> <content>provide in those cases for the factors to be considered in determining an amount that is realistic and equitable.</content></subclause> </clause> <clause class="indent0 fontsize10"><num value="ii">“(ii)</num> <content>Notwithstanding the determination made in clause (i), the Secretary may not apply factors that would increase or decrease the payment under this part during any year for any particular item or service by more than 15 percent from such payment during the preceding year except as provided in subparagraph (B).</content></clause> </subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B)</num> <chapeau>The Secretary may make a determination under this subparagraph that would result in an increase or decrease under subparagraph (A) of more than 15 percent of the payment amount for a year, but only if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the Secretary’s determination takes into account the factors described in subparagraph (C) and any additional factors the Secretary determines appropriate,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the Secretary’s determination takes into account the potential impacts described in subparagraph (D), and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>the Secretary complies with the procedural requirements of paragraph (9).</content></clause> </subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">“(C)</num> <chapeau>The factors described in this subparagraph are as follows:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>The programs established under this title and title XIX are the sole or primary sources of payment for an item or service.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>The payment amount does not reflect changing technology, increased facility with that technology, or reductions in acquisition or production costs.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>The payment amount for an item or service under this part is substantially higher or lower than the payment made for the item or service by other purchasers.</content></clause> </subparagraph> <subparagraph class="indent0 fontsize10"><num value="D">“(D)</num> <content>The potential impacts of a determination under subparagraph (B) on quality, access, and beneficiary liability, including the likely effects on assignment rates and participation rates.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="9">“(9)</num><subparagraph class="inline"><num value="A">(A)</num> <content>The Secretary shall consult with representatives of suppliers or other individuals who furnish an item or service before making a determination under paragraph (8)(B) with regard to that item or service.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B)</num> <chapeau>The Secretary shall publish notice of a proposed determination<sidenote><p class="indent0 firstIndent0 fontsize8">Federal Register, publication.</p></sidenote> under paragraph (8)(B) in the Federal Register—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>specifying the payment amount proposed to be established with respect to an item or service,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>explaining the factors and data that the Secretary took into account in determining the payment amount so specified, and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>explaining the potential impacts described in paragraph (8)(D).</content></clause> </subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">“(C)</num> <content>After publication of the notice required by subparagraph (B), the Secretary shall allow not less than 60 days for public comment on the proposed determination.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="D">“(D)</num><clause class="inline"><num value="i">(i)</num> <content>Taking into consideration the comments made by the<sidenote><p class="indent0 firstIndent0 fontsize8">Federal Register, publication.</p></sidenote> public, the Secretary shall publish in the Federal Register a final determination under paragraph (8)(B) with respect to the payment amount to be established with respect to the item or service.</content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii)</num> <content>A final determination published pursuant to clause (i) shall explain the factors and data that the Secretary took into consideration in making the final determination.”.<page identifier="/us/stat/111/392">111 STAT. 392</page></content></clause> </subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><chapeau>Section 1834(a)(10)(B) (42 U.S.C. 1395m(a)(10)(B)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>For covered items furnished on or after January 1, 1991, the</quotedText>” and inserting “<quotedText>The</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<quotedText>(other than subparagraph (D))</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by striking all that follows “payments under this subsection” and inserting a period.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395m">42 USC 1395m note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall take effect on the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="4317">SEC. 4317.</num> <heading>REQUIREMENT TO FURNISH DIAGNOSTIC INFORMATION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Inclusion of Non-Physician Practitioners in Requirement to Provide Diagnostic Codes for Physician Services</inline>.—</heading><content>Paragraphs (1) and (2) of section 1842(p) (42 U.S.C. 1395u(p)) are each amended by inserting “<quotedText>or practitioner specified in subsection (b)(18)(C)</quotedText>” after “by a physician”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Requirement to Provide Diagnostic Information When Ordering Certain Items or Services Furnished by Another Entity</inline>.—</heading><content>Section 1842(p) (42 U.S.C. 1395u(p)), is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>In the case of an item or service defined in paragraph (3), (6), (8), or (9) of subsection 1861(s) ordered by a physician or a practitioner specified in subsection (b)(18)(C), but furnished by another entity, if the Secretary (or fiscal agent of the Secretary) requires the entity furnishing the item or service to provide diagnostic or other medical information in order for payment to be made to the entity, the physician or practitioner shall provide that information to the entity at the time that the item or service is ordered by the physician or practitioner.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395u">42 USC 1395u note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to items and services furnished on or after January 1, 1998.</content> </subsection> </section> <section> <num value="4318">SEC. 4318.</num> <heading>REPORT BY GAO ON OPERATION OF FRAUD AND ABUSE CONTROL PROGRAM.</heading> <content>Section 1817(k)(6) (42 U.S.C. 1395i(k)(6)) is amended by inserting “<quotedText>June 1, 1998, and</quotedText>” after “Not later than”.</content> </section> <section> <num value="4319">SEC. 4319.</num> <heading>COMPETITIVE BIDDING DEMONSTRATION PROJECTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Part B of title XVIII (42 U.S.C. 1395j et seq.) is amended by inserting after section 1846 the following new section: <quotedContent> <section> <num value="1847">“SEC. 1847.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395w–3">42 USC 1395w–3</ref>.</p></sidenote> <heading>DEMONSTRATION PROJECTS FOR COMPETITIVE ACQUISITION OF ITEMS AND SERVICES.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Establishment of Demonstration Project Bidding Areas</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall implement not more than 5 demonstration projects under which competitive acquisition areas are established for contract award purposes for the furnishing under this part of the items and services described in subsection (d).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Project requirements</inline>.—</heading><chapeau>Each demonstration project under paragraph (1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>shall include such group of items and services as the Secretary may prescribe,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>shall be conducted in not more than 3 competitive acquisition areas, and<page identifier="/us/stat/111/393">111 STAT. 393</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>shall be operated over a 3-year period.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Criteria for establishment of competitive acquisition areas</inline>.—</heading><chapeau>Each competitive acquisition area established under a demonstration project implemented under paragraph (1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>shall be, or shall be within, a metropolitan statistical area (as defined by the Secretary of Commerce), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>shall be chosen based on the availability and accessibility of entities able to furnish items and services, and the probable savings to be realized by the use of competitive bidding in the furnishing of items and services in such area.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Awarding of Contracts in Areas</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall conduct a competition among individuals and entities supplying items and services described in subsection (c) for each competitive acquisition area established under a demonstration project implemented under subsection (a).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Conditions for awarding contract</inline>.—</heading><content>The Secretary may not award a contract to any entity under the competition conducted pursuant to paragraph (1) to furnish an item or service unless the Secretary finds that the entity meets quality standards specified by the Secretary that the total amounts to be paid under the contract are expected to be less than the total amounts that would otherwise be paid.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Contents of contract</inline>.—</heading><content>A contract entered into with an entity under the competition conducted pursuant to paragraph (1) is subject to terms and conditions that the Secretary may specify.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Limit on number of contractors</inline>.—</heading><content>The Secretary may limit the number of contractors in a competitive acquisition area to the number needed to meet projected demand for items and services covered under the contracts.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Expansion of Projects</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Evaluations</inline>.—</heading><content>The Secretary shall evaluate the impact of the implementation of the demonstration projects on medicare program payments, access, diversity of product selection, and quality. The Secretary shall make annual reports to the Committees on Ways and Means and Commerce of the House of Representatives and the Committee on Finance of the Senate on the results of the evaluation described in the preceding sentence and a final report not later than 6 months after the termination date specified in subsection (e).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Expansion</inline>.—</heading><chapeau>If the Secretary determines from the evaluations under paragraph (1) that there is clear evidence that any demonstration project—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>results in a decrease in Federal expenditures under this title, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>does not reduce program access, diversity of product selection, and quality under this title, the Secretary may expand the project to additional competitive acquisition areas.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Services Described</inline>.—</heading><content>The items and services to which this section applies are all items and services covered under this part (except for physicians’ services as defined in section 1861(s)(1)) that the Secretary may specify. At least one demonstration project shall include oxygen and oxygen equipment.<page identifier="/us/stat/111/394">111 STAT. 394</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Termination</inline>.—</heading><content>Notwithstanding any other provision of this section, all projects under this section shall terminate not later than December 31, 2002.”.</content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Items And Services to be Furnished Only Through Competitive Acquisition</inline>.—</heading><chapeau>Section 1862(a) (42 U.S.C. 1395y(a)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>or</quotedText>” at the end of paragraph (15),</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking the period at the end of paragraph (16) and inserting “<quotedText>; or</quotedText>”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by inserting after paragraph (16) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="17">“(17)</num> <content>where the expenses are for an item or service furnished in a competitive acquisition area (as established by the Secretary under section 1847(a)) by an entity other than an entity with which the Secretary has entered into a contract under section 1847(b) for the furnishing of such an item or service in that area, unless the Secretary finds that the expenses were incurred in a case of urgent need, or in other circumstances specified by the Secretary.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395w–3">42 USC 1395w–3 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Study by GAO</inline>.—</heading><content>The Comptroller of the United States shall study the effectiveness of the establishment of competitive acquisition areas under section 1847(a) of the Social Security Act, as added by this section.</content> </subsection> </section> <section> <num value="4320">SEC. 4320.</num> <heading>PROHIBITING UNNECESSARY AND WASTEFUL MEDICARE PAYMENTS FOR CERTAIN ITEMS.</heading> <content>Section 1861(v) (42 U.S.C. 1395x(v)) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <heading><inline class="smallCaps">Items Unrelated to Patient Care</inline>.—</heading><chapeau>Reasonable costs do not include costs for the following—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>entertainment, including tickets to sporting and other entertainment events;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>gifts or donations;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>personal use of motor vehicles;</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>costs for fines and penalties resulting from violations of Federal, State, or local laws; and</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>education expenses for spouses or other dependents of providers of services, their employees or contractors.”.</content></clause> </paragraph> </quotedContent> </content></section> <section> <num value="4321">SEC. 4321.</num> <heading>NONDISCRIMINATION IN POST-HOSPITAL REFERRAL TO HOME HEALTH AGENCIES AND OTHER ENTITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Notification of Availability of Home Health Agencies and Other Entities as Part of Discharge Planning Process</inline>.—</heading><chapeau>Section 1861(ee)(2) (42 U.S.C. 1395x(ee)(2)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subparagraph (D), by inserting before the period the following: “, including the availability of home health services through individuals and entities that participate in the program under this title and that serve the area in which the patient resides and that request to be listed by the hospital as available”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num> <chapeau>Consistent with section 1802, the discharge plan shall—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>not specify or otherwise limit the qualified provider which may provide post-hospital home health services, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>identify (in a form and manner specified by the Secretary) any entity to whom the individual is referred in which the hospital has a disclosable financial interest <page identifier="/us/stat/111/395">111 STAT. 395</page>(as specified by the Secretary consistent with section 1866(a)(1)(S)) or which has such an interest in the hospital.”.</content></clause> </subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Maintenance and Disclosure of Information on Posthospital Home Health Agencies and Other Entities</inline>.—</heading><chapeau>Section 1866(a)(1) (42 U.S.C. 1395cc(a)(1)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>and</quotedText>” at the end of subparagraph (Q),</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking the period at the end of subparagraph (R), and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="S">“(S)</num> <chapeau>in the case of a hospital that has a financial interest (as specified by the Secretary in regulations) in an entity to which individuals are referred as described in section 1861(ee)(2)(H)(ii), or in which such an entity has such a financial interest, or in which another entity has such a financial interest (directly or indirectly) with such hospital and such an entity, to maintain and disclose to the Secretary (in a form and manner specified by the Secretary) information on—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the nature of such financial interest,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the number of individuals who were discharged from the hospital and who were identified as requiring home health services, and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>the percentage of such individuals who received such services from such provider (or another such provider).”.</content></clause> </subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Disclosure of Information to the Public</inline>.—</heading><content>Title XI is amended by inserting after section 1145 the following new section: <quotedContent> <level> <heading class="centered">“<inline class="smallCaps">public disclosure of certain information on hospital financial interest and referral patterns</inline></heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320b–16">42 USC 1320b–16</ref>.</p></sidenote> <section> <num value="1146">“<inline class="smallCaps">Sec</inline>. 1146.</num> <content class="inline">The Secretary shall make available to the public, in a form and manner specified by the Secretary, information disclosed to the Secretary pursuant to section 1866(a)(1)(S).”.</content> </section> </level> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>The amendments made by subsection (a) shall apply note to discharges occurring on or after the date which is 90 days after the date of the enactment of this Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>The Secretary of Health and Human Services shall<sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320b–16">42 USC 1320b–16 note</ref>.</p></sidenote> Regulations, issue regulations by not later than the date which is 1 year after the date of the enactment of this Act to carry out the amendments made by subsections (b) and (c) and such amendments shall take effect as of such date (on or after the issuance of such regulations) as the Secretary specifies in such regulations.</content></paragraph> </subsection> </section> </chapter> <chapter> <num value="3">CHAPTER 3—</num><heading>CLARIFICATIONS AND TECHNICAL CHANGES</heading> <section> <num value="4331">SEC. 4331.</num> <heading>OTHER FRAUD AND ABUSE RELATED PROVISIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Reference Correction</inline>.—</heading><paragraph class="inline"><num value="1">(1)</num> <content>Section 1128D(b)(2)(D) (42 U.S.C. 1320a–7d(b)(2)(D)), as added by section 205 of the Health Insurance Portability and Accountability Act of 1996, is amended by striking “<quotedText>1128B(b)</quotedText>” and inserting “<quotedText>1128A(b)</quotedText>”.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <content>Section 1128E(g)(3)(C) (42 U.S.C. 1320a–7e(g)(3)(C)) is amended by striking “<quotedText>Veterans’ Administration</quotedText>” and inserting “<quotedText>Department of Veterans Affairs</quotedText>”.<page identifier="/us/stat/111/396">111 STAT. 396</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Language in Definition of Conviction</inline>.—</heading><content>Section 1128E(g)(5) (42 U.S.C. 1320a–7e(g)(5)), as inserted by section 221(a) of the Health Insurance Portability and Accountability Act of 1996, is amended by striking “<quotedText>paragraph (4)</quotedText>” and inserting “<quotedText>paragraphs (1) through (4)</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Implementation of Exclusions</inline>.—</heading><chapeau>Section 1128 (42 U.S.C. 1320a–7) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subsection (a), by striking “<quotedText>any program under title XVIII and shall direct that the following individuals and entities be excluded from participation in any State health care program (as defined in subsection (h))</quotedText>” and inserting “<quotedText>any Federal health care program (as defined in section 1128B(f))</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subsection (b), by striking “<quotedText>any program under title XVIII and may direct that the following individuals and entities be excluded from participation in any State health care program</quotedText>” and inserting “<quotedText>any Federal health care program (as defined in section 1128B(f))</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Sanctions for Failure to Report</inline>.—</heading><content>Section 1128E(b) (42 U.S.C. 1320a–7e(b)), as inserted by section 221(a) of the Health Insurance Portability and Accountability Act of 1996, is amended by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Sanctions for failure to report</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Health plans</inline>.—</heading><content>Any health plan that fails to report information on an adverse action required to be reported under this subsection shall be subject to a civil money penalty of not more than $25,000 for each such adverse action not reported. Such penalty shall be imposed and collected in the same manner as civil money penalties under subsection (a) of section 1128A are imposed and collected under that section.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Governmental agencies</inline>.—</heading><content>The Secretary shall provide for a publication of a public report that identifies those Government agencies that have failed to report information on adverse actions as required to be reported under this subsection.”.</content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Clarification of Treatment of Certain Waivers and Payments of Premiums</inline>.—</heading><chapeau>Section 1128A(i)(6) (42 U.S.C. 1320a–7a(i)(6)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in subparagraph (A)(iii)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in subclause (I), by adding “<quotedText>or</quotedText>” at the end;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in subclause (II), by striking “<quotedText>or</quotedText>” at the end; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by striking subclause (III);</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by redesignating subparagraphs (B) and (C) as subparagraphs (C) and (D); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by inserting after subparagraph (A) the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Publication.</p></sidenote> <content>any permissible waiver as specified in section 1128B(b)(3) or in regulations issued by the Secretary;”.</content></subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320a–7e">42 USC 1320a–7e note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in this subsection, the amendments made by this section shall be effective as if included in the enactment of the Health Insurance Portability and Accountability Act of 1996.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Federal health program</inline>.—</heading><content>The amendments made by subsection (c) shall take effect on the date of the enactment of this Act.<page identifier="/us/stat/111/397">111 STAT. 397</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Sanction for failure to report</inline>.—</heading><content>The amendment made by subsection (d) shall apply to failures occurring on or after the date of the enactment of this Act.</content></paragraph> </subsection> </section> </chapter> </subtitle> <subtitle> <num value="E">Subtitle E—</num><heading>Provisions Relating to Part A Only</heading> <chapter> <num value="1">CHAPTER 1—</num><heading>PAYMENT OF PPS HOSPITALS</heading> <section> <num value="4401">SEC. 4401.</num> <heading>PPS HOSPITAL PAYMENT UPDATE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 1886(b)(3)(B)(i) (42 U.S.C. 1395ww(b)(3)(B)(i)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>and</quotedText>” at the end of subclause (XII), and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking subclause (XIII) and inserting the following: <quotedContent> <subclause class="indent4 fontsize10"><num value="XIII">“(XIII)</num> <content>for fiscal year 1998, 0 percent,</content></subclause> <subclause class="indent4 fontsize10"><num value="XIV">“(XIV)</num> <content>for fiscal year 1999, the market basket percentage increase minus 1.9 percentage points for hospitals in all areas,</content></subclause> <subclause class="indent4 fontsize10"><num value="XV">“(XV)</num> <content>for fiscal year 2000, the market basket percentage increase minus 1.8 percentage points for hospitals in all areas,</content></subclause> <subclause class="indent4 fontsize10"><num value="XVI">“(XVI)</num> <content>for each of fiscal years 2001 and 2002, the market basket percentage increase minus 1.1 percentage point for hospitals in all areas, and</content></subclause> <subclause class="indent4 fontsize10"><num value="XVII">“(XVII)</num> <content>for fiscal year 2003 and each subsequent fiscal year, the market basket percentage increase for hospitals in all areas.”.</content></subclause> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Temporary Relief for Certain Non-Teaching, Non-DSH Hospitals</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395ww">42 USC 1395ww note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of a hospital described in paragraph (2) for its cost reporting period—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>beginning in fiscal year 1998 the amount of payment made to the hospital under section 1886(d) of the Social Security Act for discharges occurring dining such fiscal year only shall be increased as though the applicable percentage increase (otherwise applicable to discharges occurring during fiscal year 1998 under section 1886(b)(3)(B)(i)(XIII) of the Social Security Act (42 U.S.C. 1395ww(b)(3)(B)(i)(XIII))) had been increased by 0.5 percentage points; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>beginning in fiscal year 1999 the amount of payment made to the hospital under section 1886(d) of the Social Security Act for discharges occurring during such fiscal year only shall be increased as though the applicable percentage increase (otherwise applicable to discharges occurring during fiscal year 1999 under section 1886(b)(3)(B)(i)(XIII) of the Social Security Act (42 U.S.C. 1395ww(b)(3)(B)(i)(XIII))) had been increased by 0.3 percentage points.</content></subparagraph> <continuation class="indent0 fontsize10">Subparagraph (A) shall not apply in computing the increase under subparagraph (B) and neither subparagraph shall affect payment for discharges for any hospital occurring during a fiscal year after fiscal year 1999. Payment increases under this subsection for discharges occurring during a fiscal year are subject to settlement after the close of the fiscal year.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Hospitals covered</inline>.—</heading><chapeau>A hospital described in this paragraph for a cost reporting period is a hospital—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>that is described in paragraph (3) for such period;<page identifier="/us/stat/111/398">111 STAT. 398</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>that is located in a State in which the amount of the aggregate payments under section 1886(d) of such Act for nospitals located in the State and described in paragraph (3) for their cost reporting periods beginning during fiscal year 1995 is less than the aggregate allowable operating costs of inpatient hospital services (as defined in section 1886(a)(4) of such Act) for all such hospitals in such State with respect to such cost reporting periods; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>with respect to which the payments under section 1886(d) of such Act (42 U.S.C. 1395ww(d)) for discharges occurring in the cost reporting period involved, as estimated by the Secretary, is less than the allowable operating costs of inpatient hospital services (as defined in section 1886(a)(4) of such Act (42 U.S.C. 1395ww(a)(4)) for such hospital for such period, as estimated by the Secretary.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Non-teaching, non-dsh hospitals described</inline>.—</heading><chapeau>A hospital described in this paragraph for a cost reporting period is a subsection (d) hospital (as defined in section 1886(d)(1)(B) of such Act (42 U.S.C. 1395ww(d)(1)(B))) that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>is not receiving any additional payment amount described in section 1886(d)(5)(F) of such Act (42 U.S.C. 1395ww(d)(5)(F)) for discharges occurring during the period;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>is not receiving any additional payment under section 1886(d)(5)(B) of such Act (42 U.S.C. 1395ww(d)(5)(B)) or a payment under section 1886(h) of such Act (42 U.S.C. 1395ww(h)) for discharges occurring during the period; and (C) does not qualify for payment under section 1886(d)(5)(G) of such Act (42 U.S.C. 1395ww(d)(5)(G)) for the period.</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="4402">SEC. 4402.</num> <heading>MAINTAINING SAVINGS FROM TEMPORARY REDUCTION IN CAPITAL PAYMENTS FOR PPS HOSPITALS.</heading> <content>Section 1886(g)(1)(A) (42 U.S.C. 1395ww(g)(1)(A)) is amended by adding at the end the following: “<quotedText>In addition to the reduction described in the preceding sentence, for discharges occurring on or after October 1, 1997, the Secretary shall apply the budget neutrality adjustment factor used to determine the Federal capital payment rate in effect on September 30, 1995 (as described in section 412.352 of title 42 of the Code of Federal Regulations), to (i) the unadjusted standard Federal capital payment rate (as described in section 412.308(c) of that title, as in effect on September 30, 1997), and (ii) the unadjusted hospital-specific rate (as described in section 412.328(e)(1) of that title, as in effect on September 30, 1997), and, for discharges occurring on or after October 1, 1997, and before September 30, 2002, reduce the rates described in clauses (i) and (ii) by 2.1 percent.</quotedText>”.</content> </section> <section> <num value="4403">SEC. 4403.</num> <heading>DISPROPORTIONATE SHARE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 1886(d)(5)(F) (42 U.S.C. 1395ww(d)(5)(F)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in clause (i) by inserting “<quotedText>and before October 1, 1997</quotedText>” after “May 1, 1986”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in clause (ii), by striking “<quotedText>The amount</quotedText>” and inserting “<quotedText>Subject to clause (ix), the amount</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by adding at the end the following new clause: <quotedContent> <clause class="indent3 fontsize10"><num value="ix">“(ix)</num> <chapeau>In the case of discharges occurring—<page identifier="/us/stat/111/399">111 STAT. 399</page></chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>during fiscal year 1998, the additional payment amount otherwise determined under clause (ii) shall be reduced by 1 percent;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>during fiscal year 1999, such additional payment amount shall be reduced by 2 percent;</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>during fiscal year 2000, such additional payment amount shall be reduced by 3 percent;</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>during fiscal year 2001, such additional payment amount shall be reduced by 4 percent;</content></subclause> <subclause class="indent4 fontsize10"><num value="V">“(V)</num> <content>during fiscal year 2002, such additional payment amount shall be reduced by 5 percent; and</content></subclause> <subclause class="indent4 fontsize10"><num value="VI">“(VI)</num> <content>during fiscal year 2003 and each subsequent fiscal year, such additional payment amount shall be reduced by 0 percent.”.</content></subclause> </clause> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Report on New Payment Formula</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395ww">42 USC 1395ww note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than 1 year after the date of the enactment of this Act, the Secretary of Health and Human Services shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report that contains a formula for determining additional payment amounts to hospitals under section 1886(d)(5)(F) of the Social Security Act (42 U.S.C. 1395ww(d)(5)(F)).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Factors in determination of formula</inline>.—</heading><chapeau>In determining such formula the Secretary shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>establish a single threshold for costs incurred by hospitals in serving low-income patients, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>consider the costs described in paragraph (3).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <chapeau>The costs described in this paragraph are as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>The costs incurred by the hospital during a period (as determined by the Secretary) of furnishing hospital services to individuals who are entitled to benefits under part A of title XVIII of the Social Security Act and who receive supplemental security income benefits under title XVI of such Act (excluding any supplementation of those benefits by a State under section 1616 of such Act (42 U.S.C. 1382e)).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>The costs incurred by the hospital during a period (as so determined) of furnishing hospital services to individuals who receive medical assistance under the State plan under title XIX of such Act and are not entitled to benefits under part A of title XVIII of such Act (including individuals enrolled in a managed care organization (as defined in section 1903(m)(1)(A) of such Act (42 U.S.C. 1396b(m)(1)(A)) or any other managed care plan under such title and individuals who receive medical assistance under such title pursuant to a waiver approved by the Secretary under section 1115 of such Act (42 U.S.C. 1315)).</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Data Collection</inline>.—</heading><content>In developing the formula described<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395ww">42 USC 1395ww note</ref>.</p></sidenote> in subsection (b), the Secretary of Health and Human Services may require any subsection (d) hospital (as defined in section 1886(d)(1)(B) of the Social Security Act (42 U.S.C. 1395ww(d)(1)(B))) receiving additional payments by reason of section 1886(d)(5)(F) of such Act (42 U.S.C;. 1395ww(d)(5)(F)) to submit to the Secretary any information that the Secretary determines is necessary to develop such formula.<page identifier="/us/stat/111/400">111 STAT. 400</page></content> </subsection> </section> <section> <num value="4404">SEC. 4404.</num> <heading>MEDICARE CAPITAL ASSET SALES PRICE EQUAL TO BOOK VALUE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 1861(v)(1)(O) (42 U.S.C. 1395x(v)(1)(O)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in clause (i)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>and (if applicable) a return on equity capital</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking “<quotedText>hospital or skilled nursing facility</quotedText>” and inserting “<quotedText>provider of services</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by striking “<quotedText>clause (iv)</quotedText>” and inserting “<quotedText>clause (iii)</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>by striking “<quotedText>the lesser of the allowable acquisition cost</quotedText>” and all that follows and inserting “<quotedText>the historical cost of the asset, as recognized under this title, less depreciation allowed, to the owner of record as of the date of enactment of the Balanced Budget Act of 1997 (or, in the case of an asset not in existence as of that date, the first owner of record of the asset after that date).</quotedText>”;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking clause (ii); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by redesignating clauses (iii) and (iv) as clauses (ii) and (iii), respectively.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by subsection (a) apply to changes of ownership that occur after the third month beginning after the date of enactment of this section.</content> </subsection> </section> <section> <num value="4405">SEC. 4405.</num> <heading>ELIMINATION OF IME AND DSH PAYMENTS ATTRIBUTABLE TO OUTLIER PAYMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Indirect Medical Education</inline>.—</heading><content>Section 1886(d)(5)(B)(i)(I) (42 U.S.C. 1395ww(d)(5)(B)(i)(D) is amended by inserting “<quotedText>, for cases qualifying for additional payment under subparagraph (A)(i),</quotedText>” before “the amount paid to the hospital under subparagraph (A)”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Disproportionate Share Adjustments</inline>.—</heading><content>Section 1886(d)(5)(F)(ii)(I) (42 U.S.C. 1395ww(d)(5)(F)(ii)(D) is amended by inserting “<quotedText>, for cases qualifying for additional payment under subparagraph (A)(i),</quotedText>” before “the amount paid to the hospital under subparagraph (A)”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Cost Outlier Payments</inline>.—</heading><content>Section 1886(d)(5)(A)(ii) (42 U.S.C. 1395ww(d)(5)(A)(ii)) is amended by striking “<quotedText>exceed the applicable DRG prospective payment rate</quotedText>” and inserting “<quotedText>exceed the sum of the applicable DRG prospective payment rate plus any amounts payable under subparagraphs (B) and (F)</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395ww">42 USC 1395ww note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section apply to discharges occurring after September 30, 1997.</content> </subsection> </section> <section> <num value="4406">SEC. 4406.</num> <heading>INCREASE BASE PAYMENT RATE TO PUERTO RICO HOSPITALS.</heading> <chapeau>Section 1886(d)(9)(A) (42 U.S.C. 1395ww(d)(9)(A)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in the matter preceding clause (i), by striking “<quotedText>in a fiscal year beginning on or after October 1, 1987,</quotedText>”,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in clause (i), by striking “<quotedText>75 percent</quotedText>” and inserting, “for discharges beginning on or after October 1, 1997, 50 percent (and for discharges between October 1, 1987, and September 30, 1997, 75 percent)”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>in clause (ii), by striking “<quotedText>25 percent</quotedText>” and inserting, “for discharges beginning in a fiscal year beginning on or after October 1, 1997, 50 percent (and for discharges between October 1, 1987 and September 30, 1997, 25 percent)”.<page identifier="/us/stat/111/401">111 STAT. 401</page></content></paragraph> </section> <section> <num value="4407">SEC. 4407.</num> <heading>CERTAIN HOSPITAL DISCHARGES TO POST ACUTE CARE.</heading> <chapeau>Section 1886(d)(5) (42 U.S.C. 1395ww(d)(5)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subparagraph (I)(ii) by inserting “<quotedText>not taking in account the effect of subparagraph (J),</quotedText>” after “in a fiscal year,”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="J">“(J)</num><clause class="inline"><num value="i">(i)</num> <chapeau>The Secretary shall treat the term ‘transfer case’ (as defined in subparagraph (I)(ii)) as including the case of a qualified discharge (as defined in clause (ii)), which is classified within a diagnosis-related group described in clause (iii), and which occurs on or after October 1, 1998. In the case of a qualified discharge for which a substantial portion of the costs of care are incurred in the early days of the inpatient stay (as defined by the Secretary), in no case may the payment amount otherwise provided under this subsection exceed an amount equal to the sum of—</chapeau> <subclause class="indent3 fontsize10"><num value="I">“(I)</num> <content>50 percent of the amount of payment under this subsection for transfer cases (as established under subparagraph (I)(i)), and</content></subclause> <subclause class="indent3 fontsize10"><num value="II">“(II)</num> <content>50 percent of the amount of payment which would have been made under this subsection with respect to the qualified discharge if no transfer were involved.</content></subclause> </clause> <clause class="indent0 fontsize10"><num value="ii">“(ii)</num> <chapeau>For purposes of clause (i), subject to clause (iii), the term ‘qualified discharge’ means a discharge classified with a diagnosis-related group (described in clause (iii)) of an individual from a subsection (a) hospital, if upon such discharge the individual—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>is admitted as an inpatient to a hospital or hospital unit that is not a subsection (d) hospital for the provision of inpatient hospital services;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>is admitted to a skilled nursing facility;</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>is provided home health services from a home health agency, if such services relate to the condition or diagnosis for which such individual received inpatient hospital services from the subsection (d) hospital, and if such services are provided within an appropriate period (as determined by the Secretary); or</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>for discharges occurring on or after October 1, 2000, the individual receives post discharge services described in clause (iv)(I).</content></subclause> </clause> <clause class="indent0 fontsize10"><num value="iii">“(iii)</num> <chapeau>Subject to clause (iv), a diagnosis-related group described in this clause is—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>1 of 10 diagnosis-related groups selected by the Secretary based upon a high volume of discharges classified within such groups and a disproportionate use of post discharge services described in clause (ii); and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>a diagnosis-related group specified by the Secretary under clause (iv)(II).</content></subclause> </clause> <clause class="indent0 fontsize10"><num value="iv">“(iv)</num> <chapeau>The Secretary shall include in the proposed rule published under subsection (e)(5)(A) for fiscal year 2001, a description of the effect of this subparagraph. The Secretary may include in the proposed rule (and in the final rule published under paragraph (6)) for fiscal year 2001 or a subsequent fiscal year, a description of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>post-discharge services not described in subclauses (I), (II), and (III) of clause (ii), the receipt of which results in a qualified discharge; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>diagnosis-related groups described in clause (iii)(I) in addition to the 10 selected under such clause.”.<page identifier="/us/stat/111/402">111 STAT. 402</page></content></subclause> </clause> </subparagraph> </quotedContent> </content></paragraph> </section> <section> <num value="4408">SEC. 4408.</num> <heading>RECLASSIFICATION OF CERTAIN COUNTIES AS LARGE URBAN AREAS UNDER MEDICARE PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>For purposes of section 1886(d) of the Social Security Act (42 U.S.C. 1395ww(d)), the large urban area of Charlotte-Gastonia-Rock Hill-North Carolina-South Carolina may be deemed to include Stanly County, North Carolina.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>This section shall apply with respect to discharges occurring on or after October 1, 1997.</content> </subsection> </section> <section> <num value="4409">SEC. 4409.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395ww">42 USC 1395ww note</ref>.</p></sidenote> <heading>GEOGRAPHIC RECLASSIFICATION FOR CERTAIN DISPROPORTIONATELY LARGE HOSPITALS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Publication.</p></sidenote> <heading><inline class="smallCaps">New Guidelines for Reclassification</inline>.—</heading><content>Notwithstanding the guidelines published under section 1886(d)(10)(D)(i)(I) of the Social Security Act (42 U.S.C. 1395ww(d)(10)(D)(i)(I)), the Secretary of Health and Human Services shall publish and use alternative guidelines under which a hospital described in subsection (b) qualities for geographic reclassification under such section for a fiscal year beginning with fiscal year 1998.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Hospitals Covered</inline>.—</heading><chapeau>A hospital described in this subsection is a hospital that demonstrates that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>the average hourly wage paid by the hospital is not less than 108 percent of the average hourly wage paid by all other hospitals located in the Metropolitan Statistical Area (or the New England County Metropolitan Area) in which the hospital is located;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>not less than 40 percent of the adjusted uninflated wages paid by all hospitals located in such Area is attributable to wages paid by the hospital; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>the hospital submitted an application requesting reclassification for purposes of wage index under section 1886(d)(10)(C) of such Act (42 U.S.C. 1395ww(d)(10)(C)) in each of fiscal years 1992 through 1997 and that such request was approved for each of such fiscal years.</content></paragraph> </subsection> </section> <section> <num value="4410">SEC. 4410.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395ww">42 USC 1395ww note</ref>.</p></sidenote> <heading>FLOOR ON AREA WAGE INDEX.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>For purposes of section 1886(d)(3)(E) of the Social Security Act (42 U.S.C. 1395ww(d)(3)(E)) for discharges occurring on or after October 1, 1997, the area wage index applicable under such section to any hospital which is not located in a rural area (as defined in section 1886(d)(2)(D) of such Act (42 U.S.C. 1395ww(d)(2)(D)) may not be less than the area wage index applicable under such section to hospitals located in rural areas in the State in which the hospital is located.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Implementation</inline>.—</heading><content>The Secretary of Health and Human Services shall adjust the area wage index referred to in subsection (a) for hospitals not described in such subsection in a manner which assures that the aggregate payments made under section 1886(d) of the Social Security Act (42 U.S.C. 1395ww(d)) in a fiscal year for the operating costs of inpatient hospital services are not greater or less than those which would have been made in the year if this section did not apply.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Exclusion of Certain Wages</inline>.—</heading><content>In the case of a hospital that is owned by a municipality and that was reclassified as an urban hospital under section 1886(d)(10) of the Social Security Act for fiscal year 1996, in calculating the hospital’s average hourly wage for purposes of geographic reclassification under such section for fiscal year 1998, the Secretary of Health and Human Services <page identifier="/us/stat/111/403">111 STAT. 403</page>shall exclude the general service wages and hours of personnel associated with a skilled nursing facility that is owned by the hospital of the same municipality and that is physically separated from the hospital to the extent that such wages and hours of such personnel are not shared with the hospital and are separately documented. A hospital that applied for and was denied reclassification as an urban hospital for fiscal year 1998, but that would have received reclassification had the exclusion required by this section been applied to it, shall be reclassified as an urban hospital for fiscal year 1998.</content> </subsection> </section> </chapter> <chapter> <num value="2">CHAPTER 2—</num><heading>PAYMENT OF PPS-EXEMPT HOSPITALS</heading> <subchapter> <num value="A">Subchapter A—</num><heading>General Payment Provisions</heading> <section> <num value="4411">SEC. 4411.</num> <heading>PAYMENT UPDATE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 1886(b)(3)(B) (42 U.S.C. 1395ww(b)(3)(B)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in clause (ii)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>and</quotedText>” at the end of subclause (V),</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by redesignating subclause (VI) as subclause (VIII); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by inserting after subclause (V), the following subclauses: <quotedContent> <subclause class="indent4 fontsize10"><num value="VI">“(VI)</num> <content>for fiscal year 1998, is 0 percent;</content></subclause> <subclause class="indent4 fontsize10"><num value="VII">“(VII)</num> <content>for fiscal years 1999 through 2002, is the applicable update factor specified under clause (vi) for the fiscal year; and”; and</content></subclause> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following new clause: <quotedContent> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <chapeau>For purposes of clause (ii)(VII) for a fiscal year, if a hospital’s allowable operating costs of inpatient hospital services recognized under this title for the most recent cost reporting period for which information is available—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>is equal to, or exceeds, 110 percent of the hospital’s target amount (as determined under subparagraph (A)) for such cost reporting period, the applicable update factor specified under this clause is the market basket percentage;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>exceeds 100 percent, but is less than 110 percent, of such target amount for the hospital, the applicable update factor specified under this clause is 0 percent or, if greater, the market basket percentage minus 0.25 percentage points for each percentage point by which such allowable operating costs (expressed as a percentage of such target amount) is less than 110 percent of such target amount;</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>is equal to, or less than 100 percent, but exceeds ⅔ of such target amount for the hospital, the applicable update factor specified under this clause is 0 percent or, if greater, the market basket percentage minus 2.5 percentage points; or</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>does not exceed ⅔ of such target amount for the hospital, the applicable update factor specified under this clause is 0 percent.”.</content></subclause> </clause> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">No Effect of Payment Reduction on Exceptions and Adjustments</inline>.—</heading><content>Section 1886(b)(4)(A)(ii) (42 U.S.C. 1395ww(b)(4)(A)(ii)) is amended by adding at the end the following new sentence: “In making such reductions, the Secretary shall treat the applicable update factor described in paragraph (3)(B)(vi) <page identifier="/us/stat/111/404">111 STAT. 404</page>for a fiscal year as being equal to the market basket percentage for that year.”.</content> </subsection> </section> <section> <num value="4412">SEC. 4412.</num> <heading>REDUCTIONS TO CAPITAL PAYMENTS FOR CERTAIN PPS-EXEMPT HOSPITALS AND UNITS.</heading> <content>Section 1886(g) (42 U.S.C. 1395ww(g)) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>In determining the amount of the payments that are attributable to portions of cost reporting periods occurring during fiscal years 1998 through 2002 and that may be made under this title with respect to capital-related costs of inpatient hospital services of a hospital which is described in clause (i), (ii), or (iv) of subsection (d)(1)(B) or a unit described in the matter after clause (v) of such subsection, the Secretary shall reduce the amounts of such payments otherwise determined under this title by 15 percent.”.</content></paragraph> </quotedContent> </content></section> <section> <num value="4413">SEC. 4413.</num> <heading>REBASING.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Option of Rebasing for Hospitals in Operation Before 1990</inline>.—</heading><chapeau>Section 1886(b)(3)(42 U.S.C. 1395ww(b)(3)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subparagraph (A) by striking “<quotedText>subparagraphs (C), (D), and (E)</quotedText>” and inserting “<quotedText>subparagraph (C) and succeeding subparagraphs</quotedText>”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num><clause class="inline"><num value="i">(i)</num> <content>In the case of a hospital (or unit described in the matter following clause (v) of subsection (d)(1)(B)) that received payment under this subsection for inpatient hospital services furnished during cost reporting periods beginning before October 1, 1990, that is within a class of hospital described in clause (iii), and that elects (in a form and manner determined by the Secretary) this subparagraph to apply to the hospital, the target amount for the hospital’s 12-montn cost reporting period beginning during fiscal year 1998 is equal to the average described in clause (ii).</content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii)</num> <chapeau>The average described in this clause for a hospital or unit shall be determined by the Secretary as follows:</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>The Secretary shall determine the allowable operating costs for inpatient hospital services for the hospital or unit for each of the 5 cost reporting periods for which the Secretary has the most recent settled cost reports as of the date of the enactment of this subparagraph.</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>The Secretary shall increase the amount determined under subclause (I) for each cost reporting period by the applicable percentage increase under subparagraph (B)(ii) for each subsequent cost reporting period up to the cost reporting period described in clause (i).</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>The Secretary shall identify among such 5 cost reporting periods the cost reporting periods for which the amount determined under subclause (II) is the highest, and the lowest.</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>The Secretary shall compute the averages of the amounts determined under subclause (II) for the 3 cost reporting periods not identified under subclause (III).</content></subclause> </clause> <clause class="indent0 fontsize10"><num value="iii">“(iii)</num> <chapeau>For purposes of this subparagraph, each of the following shall be treated as a separate class of hospital:</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>Hospitals described in clause (i) of subsection (d)(1)(B) and psychiatric units described in the matter following clause (v) of such subsection.</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>Hospitals described in clause (ii) of such subsection and rehabilitation units described in the matter following clause (v) of such subsection.<page identifier="/us/stat/111/405">111 STAT. 405</page></content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>Hospitals described in clause (iii) of such subsection.</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>Hospitals described in clause (iv) of such subsection.</content></subclause> <subclause class="indent4 fontsize10"><num value="V">“(V)</num> <content>Hospitals described in clause (v) of such subsection.”.</content></subclause> </clause> </subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Certain Long-Term Care Hospitals</inline>.—</heading><content>Section 1886(b)(3) (42 U.S.C. 1395ww(b)(3)), as amended by subsection (a), is amended by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num><clause class="inline"><num value="i">(i)</num> <content>In the case of a qualified long-term care hospital (as defined in clause (ii)) that elects (in a form and manner determined by the Secretary) this subparagraph to apply to the hospital, the target amount for the hospital’s 12-month cost reporting period beginning during fiscal year 1998 is equal to the allowable operating costs of inpatient hospital services (as defined in subsection (a)(4)) recognized under this title for the hospital for the 12-month cost reporting period beginning during fiscal year 1996, increased by the applicable percentage increase for the cost reporting period beginning during fiscal year 1997.</content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii)</num> <chapeau>In clause (i), a ‘qualified long-term care hospital’ means, with respect to a cost reporting period, a hospital described in clause (iv) of subsection (d)(1)(B) during each of the 2 cost reporting periods for which the Secretary has the most recent settled cost reports as of the date of the enactment of this subparagraph for each of which—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the hospital’s allowable operating costs of inpatient hospital services recognized under this title exceeded 115 percent of the hospital’s target amount, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the hospital would have a disproportionate patient percentage of at least 70 percent (as determined by the Secretary under subsection (d)(5)(F)(vi)) if the hospital were a subsection (d) hospital.”.</content></subclause> </clause> </subparagraph> </quotedContent> </content> </subsection> </section> <section> <num value="4414">SEC. 4414.</num> <heading>CAP ON TEFRA LIMITS.</heading> <content>Section 1886(b)(3) (42 U.S.C. 1395ww(b)(3)), as amended by section 4413, is amended by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num><clause class="inline"><num value="i">(i)</num> <content>In the case of a hospital or unit that is within a class of hospital described in clause (iv), the Secretary shall estimate the 75th percentile of the target amounts for such hospitals within such class for cost reporting periods ending during fiscal year 1996.</content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii)</num> <content>The Secretary shall update the amount determined under clause (i), for each cost reporting period after the cost reporting period described in such clause and up to the first cost reporting period beginning on or after October 1, 1997, by a factor equal to the market basket percentage increase.</content></clause> <clause class="indent0 fontsize10"><num value="iii">“(iii)</num> <content>For cost reporting periods beginning during each of fiscal years 1999 through 2002, the Secretary shall update such amount by a factor equal to the market basket percentage increase.</content></clause> <clause class="indent0 fontsize10"><num value="iv">“(iv)</num> <chapeau>For purposes of this subparagraph, each of the following shall be treated as a separate class of hospital:</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>Hospitals described in clause (i) of subsection (d)(1)(B) and psychiatric units described in the matter following clause (v) of such subsection.</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>Hospitals described in clause (ii) of such subsection and rehabilitation units described in the matter following clause (v) of such subsection.</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>Hospitals described in clause (iv) of such subsection.”.<page identifier="/us/stat/111/406">111 STAT. 406</page></content></subclause> </clause> </subparagraph> </quotedContent> </content></section> <section> <num value="4415">SEC. 4415.</num> <heading>BONUS AND RELIEF PAYMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Change in Bonus Payment</inline>.—</heading><content>Section 1886(b)(1) (42 U.S.C. 1395ww(b)(D) is amended in subparagraph (A) by striking all that follows “plus—” and inserting the following: <quotedContent> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>15 percent of the amount by which the target amount exceeds the amount of the operating costs, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>2 percent of the target amount, whichever is less;”.</content></clause> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Continuous Improvement Bonus Payments</inline>.—</heading><chapeau>Section 1886(b) (42 U.S.C. 1395ww(b)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in paragraph (1), by inserting “<quotedText>plus the amount, if any, provided under paragraph (2)</quotedText>” before “except that in no case”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting after paragraph (1), the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num><subparagraph class="inline"><num value="A">(A)</num> <chapeau>In addition to the payment computed under paragraph (1), in the case of an eligible hospital (described in subparagraph (B)) for a cost reporting period beginning on or after October 1, 1997, the amount of payment on a per discharge basis under paragraph (1) shall be increased by the lesser of—</chapeau> <clause class="indent2 fontsize10"><num value="i">“(i)</num> <content>50 percent of the amount by which the operating costs are less than the expected costs (as defined in subparagraph (D)) for the period; or</content></clause> <clause class="indent2 fontsize10"><num value="ii">“(ii)</num> <content>1 percent of the target amount for the period.</content></clause> </subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B)</num> <chapeau>For purposes of this paragraph, an ‘eligible hospital’ means with respect to a cost reporting period, a hospital—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>that has received payments under this subsection for at least 3 full cost reporting periods before that cost reporting period, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>whose operating costs for the period are less than the least of its target amount, its trended costs (as defined in subparagraph (C)), or its expected costs (as defined in subparagraph (D)) for the period.</content></clause> </subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">“(C)</num> <chapeau>For purposes of subparagraph (B)(ii), the term ‘trended costs’ means for a hospital cost reporting period ending in a fiscal year—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>in the case of a hospital for which its cost reporting period ending in fiscal year 1996 was its third or subsequent full cost reporting period for which it receives payments under this subsection, the lesser of the operating costs or target amount for that hospital for its cost reporting period ending in fiscal year 1996, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>in the case of any other hospital, the operating costs for that hospital for its third full cost reporting period for which it receives payments under this subsection,</content></clause> <continuation class="indent0 fontsize10">increased (in a compounded manner) for each succeeding fiscal year (through the fiscal year involved) by the market basket percentage increase for the fiscal year.</continuation> </subparagraph> <subparagraph class="indent0 fontsize10"><num value="D">“(D)</num> <content>For purposes of this paragraph, the term ‘expected costs’, with respect to the cost reporting period ending in a fiscal year, means the lesser of the operating costs of inpatient hospital services or target amount per discharge for the previous cost reporting period updated by the market basket percentage increase (as defined in paragraph (3)(B)(iii)) for the fiscal year.”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Change in Relief Payments</inline>.—</heading><chapeau>Section 1886(b)(1) (42 U.S.C. 1395ww(b)(1)), as amended in subsections (a) and (b), is further amended—<page identifier="/us/stat/111/407">111 STAT. 407</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by redesignating subparagraph (B) as subparagraph (C)</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>in subparagraph (C), as so redesignated—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>greater than the target amount</quotedText>” and inserting “<quotedText>greater than 110 percent of the target amount</quotedText>”, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking “<quotedText>exceed the target amount</quotedText>” and inserting “<quotedText>exceed 110 percent of the target amount</quotedText>”, and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by inserting after subparagraph (A), the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>are greater than the target amount but do not exceed 110 percent of the target amount, the amount of the payment with respect to those operating costs payable under part A on a per discharge basis shall equal the target amount; or”,</content></subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than October 1, 1999, the Secretary<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395ww">42 USC 1395ww note</ref>.</p></sidenote> of Health and Human Services shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report that describes the effect of the amendments to section 1886(b)(1) of the Social Security Act (42 U.S.C. 1395ww(b)(1)), made under this section, on psychiatric hospitals (as defined in section 1886(d)(1)(B)(i) of such Act (42 U.S.C. 1395ww(d)(1)(B)(i)) that have approved medical residency training programs under title XVIII of such Act (42 U.S.C. 1395 et seq.)).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by subsections<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395ww">42 USC 1395ww note</ref>.</p></sidenote> (a) and (c) shall apply with respect to cost reporting periods beginning on or after October 1, 1997.</content> </subsection> </section> <section> <num value="4416">SEC. 4416.</num> <heading>CHANGE IN PAYMENT AND TARGET AMOUNT FOR NEW PROVIDERS.</heading> <chapeau>Section 1886(b) (42 U.S.C. 1395ww(b)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num><subparagraph class="inline"><num value="A">(A)</num> <chapeau>Notwithstanding paragraph (1), in the case of a hospital or unit that is within a class of hospital described in subparagraph (B) which first receives payments under this section on or after October 1, 1997—</chapeau> <clause class="indent0 fontsize10"><num value="i">“(i)</num> <chapeau>for each of the first 2 cost reporting periods for which the hospital has a settled cost report, the amount of the payment with respect to operating costs described in paragraph (1) under part A on a per discharge or per admission basis (as the case may be) is equal to the lesser of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the amount of operating costs for such respective period, or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>110 percent of the national median of the target amount for hospitals in the same class as the hospital for cost reporting periods ending during fiscal year 1996, updated by the hospital market basket increase percentage to the fiscal year in which the hospital first received payments under this section, as adjusted under subparagraph (C); and</content></subclause> </clause> <clause class="indent0 fontsize10"><num value="ii">“(ii)</num> <content>for purposes of computing the target amount for the subsequent cost reporting period, the target amount for the preceding cost reporting period is equal to the amount determined under clause (i) for such preceding period.</content></clause> </subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B)</num> <chapeau>For purposes of this paragraph, each of the following shall be treated as a separate class of hospital:<page identifier="/us/stat/111/408">111 STAT. 408</page></chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>Hospitals described in clause (i) of subsection (d)(1)(B) and psychiatric units described in the matter following clause (v) of such subsection.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>Hospitals described in clause (ii) of such subsection and rehabilitation units described in the matter following clause (v) of such subsection.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>Hospitals described in clause (iv) of such subsection.</content></clause> </subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">“(C)</num> <content>In applying subparagraph (A)(i)(II) in the case of a hospital or unit, the Secretary shall provide for an appropriate adjustment to the labor-related portion of the amount determined under such subparagraph to take into account differences between average wage-related costs in the area of the hospital and the national average of such costs within the same class of hospital.”; and</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in paragraph (3)(A), as amended in sections 4413 and 4414, by inserting “<quotedText>and in paragraph (7)(A)(ii),</quotedText>” before “for purposes of”.</content></paragraph> </section> <section> <num value="4417">SEC. 4417.</num> <heading>TREATMENT OF CERTAIN LONG-TERM CARE HOSPITALS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><paragraph class="inline"><num value="1">(1)</num> <content>Section 1886(d)(1)(B) (42 U.S.C. 1395ww(d)(1)(B)) is amended by adding at the end the following new sentence: “A hospital that was classified by the Secretary on or before September 30, 1995, as a hospital described in clause (iv) shall continue to be so classified notwithstanding that it is located in the same building as, or on the same campus as, another hospital.”.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395ww">42 USC 1395ww note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendment made by paragraph (1) shall apply to discharges occurring on or after October 1, 1995.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Certain Long-Term Care Hospitals That Treat Cancer Patients</inline>.—</heading><paragraph class="inline"><num value="1">(1)</num> <chapeau>Section 1886(d)(1)(B)(iv) (42 U.S.C. 1395ww(d)(1)(B)(iv)) is amended—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A)</num> <content>by inserting “<quotedText>(I)</quotedText>” after “(iv)”; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B)</num> <content>by adding at the end the following: <quotedContent> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>a hospital that first received payment under this subsection in 1986 which has an average inpatient length of stay (as determined by the Secretary) of greater than 20 days and that has 80 percent or more of its annual medicare inpatient discharges with a principal diagnosis that reflects a finding of neoplastic disease in the 12-month cost reporting period ending in fiscal year 1997, or”.</content></subclause> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395ww">42 USC 1395ww note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendment made by paragraph (1) shall apply to cost reporting periods beginning on or after the date of the enactment of this Act.</content></paragraph> </subsection> </section> <section> <num value="4418">SEC. 4418.</num> <heading>TREATMENT OF CERTAIN CANCER HOSPITALS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 1886(d)(1) (42 U.S.C. 1395ww(d)(D) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in subparagraph (B)(v)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by inserting “<quotedText>(I)</quotedText>” after “(v)”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking the semicolon at the end and inserting “<quotedText>, or</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by adding at the end the following: <quotedContent> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>a hospital that was recognized as a comprehensive cancer center or clinical cancer research center by the National Cancer Institute of the National Institutes of Health as of April 20, 1983, that is located in a State which, as of December 19, 1989, was not operating a demonstration project under section 1814(b), that applied and was denied, on or before December 31, 1990, for classification as a hospital involved <page identifier="/us/stat/111/409">111 STAT. 409</page>extensively in treatment for or research on cancer under this clause (as in effect on the day before the date of the enactment of this subclause), that as of the date of the enactment of this subclause, is licensed for less than 50 acute care beds, and that demonstrates for the 4-year period ending on December 31, 1996, that at least 50 percent of its total discharges have a principal finding of neoplastic disease, as defined in subparagraph (E);” and</content></subclause> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following: <quotedContent> <num value="E">“(E)</num> <content>For purposes of subparagraph (B)(v)(II) only, the term ‘principal finding of neoplastic disease’ means the condition established after study to be chiefly responsible for occasioning the admission of a patient to a hospital, except that only discharges with ICD–9–CM principal diagnosis codes of 140 through 239, V58.0, V58.1, V66.1, V66.2, or 990 will be considered to reflect such a principal diagnosis.”.</content> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Payment</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395ww">42 USC 1395ww note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Application to cost reporting periods</inline>.—</heading><content>Any classification by reason of section 1886(d)(1)(B)(v)(II) of the Social Security Act (42 U.S.C. 1395ww(d)(1)(B)(v)(II)) (as added by subsection (a)) shall apply to all cost reporting periods beginning on or after January 1, 1991.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Base year</inline>.—</heading><chapeau>Notwithstanding the provisions of section 1886(b)(3)(E) of such Act (42 U.S.C. 1395ww(b)(3)(E)) or other provisions to the contrary, the base cost reporting period for purposes of determining the target amount for any hospital classified by reason of section 1886(d)(1)(B)(v)(II) of such Act shall be either—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>the hospital’s cost reporting period beginning during fiscal year 1990, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>pursuant to an election under 1886(b)(3)(G) of such Act (42 U.S.C. 1395ww(b)(3)(G)), as added in section 4413(b), the period provided for under such section.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Deadline for payments</inline>.—</heading><content>Any payments owed to a hospital by reason of this subsection shall be made expeditiously, but in no event later than 1 year after the date of the enactment of this Act.</content></paragraph> </subsection> </section> <section> <num value="4419">SEC. 4419.</num> <heading>ELIMINATION OF EXEMPTIONS FOR CERTAIN HOSPITALS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Reduction of Exemptions</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 1886(b)(4)(A)(i) (42 U.S.C. 1395ww(b)(4)(A)(i)) is amended in the first sentence by striking “<quotedText>The Secretary shall provide for an exemption from, or an exception and adjustment to,</quotedText>” and inserting “<quotedText>The Secretary shall provide for an exception and adjustment to (and in the case of a hospital or unit described in subsection (d)(1)(B)(iii), may provide an exemption from)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendment made by paragraph<sidenote><p class="indent0 firstIndent0 fontsize8">42 USC 1395ww note.</p></sidenote> (1) shall apply to hospitals or units that first qualify as a hospital or unit described in section 1886(d)(1)(B) (42 U.S.C. 1395ww(d)(1)(B)) for cost reporting periods beginning on or after October 1, 1997.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Report on Exceptions</inline>.—</heading><content>The Secretary of Health and<sidenote><p class="indent0 firstIndent0 fontsize8">Federal Register, publication.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395ww">42 USC 1395ww note</ref>.</p></sidenote> Human Services shall publish annually in the Federal Register a report describing the total amount of payments made to hospitals by reason of section 1886(b)(4) of the Social Security Act (42 U.S.C. .<page identifier="/us/stat/111/410">111 STAT. 410</page>1395ww(b)(4)), as amended by subsection (a), ending during the previous fiscal year</content> </subsection> </section> </subchapter> <subchapter> <num value="B">Subchapter B—</num><heading>Prospective Payment System for PPS-Exempt Hospitals</heading> <section> <num value="4421">SEC. 4421.</num> <heading>PROSPECTIVE PAYMENT FOR INPATIENT REHABILITATION HOSPITAL SERVICES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 1886 (42 U.S.C. 1395ww) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="j">“(j)</num> <heading><inline class="smallCaps">Prospective Payment for Inpatient Rehabilitation Services</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Payment during transition period</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Notwithstanding section 1814(b), but subject to the provisions of section 1813, the amount of the payment with respect to the operating and capital costs of inpatient hospital services of a rehabilitation hospital or a rehabilitation unit (in this subsection referred to as a ‘rehabilitation facility’), in a cost reporting period beginning on or after October 1, 2000, and before October 1, 2002, is equal to the sum of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the TEFRA percentage (as defined in subparagraph (C)) of the amount that would have been paid under part A with respect to such costs if this subsection did not apply, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the prospective payment percentage (as defined in subparagraph (C)) of the product of (I) the per unit payment rate established under this subsection for the fiscal year in which the payment unit of service occurs, and (II) the number of such payment units occurring in the cost reporting period.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Fully implemented system</inline>.—</heading><content>Notwithstanding section 1814(b), but subject to the provisions of section 1813, the amount of the payment with respect to the operating and capital costs of inpatient hospital services of a rehabilitation facility for a payment unit in a cost reporting period beginning on or after October 1, 2002, is equal to the per unit payment rate established under this subsection for the fiscal year in which the payment unit of service occurs.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">TEFRA and prospective payment percentages specified</inline>.—</heading><chapeau>For purposes of subparagraph (A), for a cost reporting period beginning—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>on or after October 1, 2000, and before October 1, 2001, the ‘TEFRA percentage’ is 66⅔ percent and the ‘prospective payment percentage’ is 33V3 percent; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>on or after October 1, 2001, and before October 1, 2002, the ‘TEFRA percentage” is 33⅓ percent and the ‘prospective payment percentage’ is 66⅔ percent.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Payment unit</inline>.—</heading><content>For purposes of this subsection, the term ‘payment unit’ means a discharge, day of inpatient hospital services, or other unit of payment defined by the Secretary.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Patient case mix groups</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Establishment</inline>.—</heading><chapeau>The Secretary shall establish—<page identifier="/us/stat/111/411">111 STAT. 411</page></chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>classes of patients of rehabilitation facilities (each in this subsection referred to as a ‘case mix group’), based on such factors as the Secretary deems appropriate, which may include impairment, age, related prior hospitalization, comorbidities, and functional capability of the patient; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>a method of classifying specific patients in rehabilitation facilities within these groups.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Weighting factors</inline>.—</heading><content>For each case mix group the Secretary shall assign an appropriate weighting which reflects the relative facility resources used with respect to patients classified within that group compared to patients classified within other groups.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Adjustments for case mix</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall from time to time adjust the classifications and weighting factors established under this paragraph as appropriate to reflect changes in treatment patterns, technology, case mix, number of payment units for which payment is made under this title, and other factors which may affect the relative use of resources. Such adjustments shall be made in a manner so that changes in aggregate payments under the classification system are a result of real changes and are not a result of changes in coding that are unrelated to real changes in case mix.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Adjustment</inline>.—</heading><content>Insofar as the Secretary determines that such adjustments for a previous fiscal year (or estimates that such adjustments for a future fiscal year) did (or are likely to) result in a change in aggregate payments under the classification system during the fiscal year that are a result of changes in the coding or classification of patients that do not reflect real changes in case mix, the Secretary shall adjust the per payment unit payment rate for subsequent years so as to eliminate the effect of such coding or classification changes.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Data collection</inline>.—</heading><content>The Secretary is authorized to require rehabilitation facilities that provide inpatient hospital services to submit such data as the Secretary deems necessary to establish and administer the prospective payment system under this subsection.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Payment rate</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The Secretary shall determine a prospective payment rate for each payment unit for which such rehabilitation facility is entitled to receive payment under this title. Subject to subparagraph (B), such rate for payment units occurring during a fiscal year shall be based on the average payment per payment unit under this title for inpatient operating and capital costs of rehabilitation facilities using the most recent data available (as estimated by the Secretary as of the date of establishment of the system) adjusted—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>by updating such per-payment-unit amount to the fiscal year involved by the weighted average of the applicable percentage increases provided under subsection (b)(3)(B)(ii) (for cost reporting periods beginning during the fiscal year) covering the period from <page identifier="/us/stat/111/412">111 STAT. 412</page>the midpoint of the period for such data through the midpoint of fiscal year 2000 and by an increase factor (described in subparagraph (C)) specified by the Secretary for subsequent fiscal years up to the fiscal year involved;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>by reducing such rates by a factor equal to the proportion of payments under this subsection (as estimated by the Secretary) based on prospective payment amounts which are additional payments described in paragraph (4) (relating to outlier and related payments);</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>for variations among rehabilitation facilities by area under paragraph (6);</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>by the weighting factors established under paragraph (2)(B); and</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>by such other factors as the Secretary determines are necessary to properly reflect variations in necessary costs of treatment among rehabilitation facilities.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Budget neutral rates</inline>.—</heading><content>The Secretary shall establish the prospective payment amounts under this subsection for payment units during fiscal years 2001 and 2002 at levels such that, in the Secretary’s estimation, the amount of total payments under this subsection for such fiscal years (including any payment adjustments pursuant to paragraphs (4) and (6)) shall be equal to 98 percent of the amount of payments that would have been made under this title during the fiscal years for operating and capital costs of rehabilitation facilities had this subsection not been enacted. In establishing such payment amounts, the Secretary shall consider the effects of the prospective payment system established under this subsection on the total number of payment units from rehabilitation facilities and other factors described in subparagraph (A).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Increase factor</inline>.—</heading><content>For purposes of this subsection for payment units in each fiscal year (beginning with fiscal year 2001), the Secretary shall establish an increase factor. Such factor shall be based on an appropriate percentage increase in a market basket of goods and services comprising services for which payment is made under this subsection, which may be the market basket percentage increase described in subsection (b)(3)(B)(iii).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Outlier and special payments</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Outliers</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary may provide for an additional payment to a rehabilitation facility for patients in a case mix group, based upon the patient being classified as an outlier based on an unusual length of stay, costs, or other factors specified by the Secretary.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Payment based on marginal cost of care</inline>.—</heading><content>The amount of such additional payment under clause (i) shall be determined by the Secretary and shall approximate the marginal cost of care beyond the cutoff point applicable under clause (i).<page identifier="/us/stat/111/413">111 STAT. 413</page></content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Total payments</inline>.—</heading><content>The total amount of the additional payments made under this subparagraph for payment units in a fiscal year may not exceed 5 percent of the total payments projected or estimated to be made based on prospective payment rates for payment units in that year.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Adjustment</inline>.—</heading><content>The Secretary may provide for such adjustments to the payment amounts under this subsection as the Secretary deems appropriate to take into account the unique circumstances of rehabilitation facilities located in Alaska and Hawaii.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Publication</inline>.—</heading><content>The Secretary shall provide for publication<sidenote><p class="indent0 firstIndent0 fontsize8">Federal Register, publication.</p></sidenote> in the Federal Register, on or before August 1 before each fiscal year (beginning with fiscal year 2001), of the classification and weighting factors for case mix groups under paragraph (2) for such fiscal year and a description of the methodology and data used in computing the prospective payment rates under this subsection for that fiscal year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Area wage adjustment</inline>.—</heading><content>The Secretary shall adjust the proportion (as estimated by the Secretary from time to time) of rehabilitation facilities’ costs which are attributable to wages and wage-related costs, of the prospective payment rates computed under paragraph (3) for area differences in wage levels by a factor (established by the Secretary) reflecting the relative hospital wage level in the geographic area of the rehabilitation facility compared to the national average wage level for such facilities. Not later than October 1, 2001 (and at least every 36 months thereafter), the Secretary shall update the factor under the preceding sentence on the basis of information available to the Secretary (and updated as appropriate) of the wages and wage-related costs incurred in furnishing rehabilitation services. Any adjustments or updates made under this paragraph for a fiscal year shall be made in a manner that assures that the aggregated payments under this subsection in the fiscal year are not greater or less than those that would have been made in the year without such adjustment.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Limitation on review</inline>.—</heading><chapeau>There shall be no administrative or judicial review under section 1869, 1878, or otherwise of the establishment of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>case mix groups, of the methodology for the classification of patients within such groups, and of the appropriate weighting factors thereof under paragraph (2),</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the prospective payment rates under paragraph (3),</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>outlier and special payments under paragraph (4), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>area wage adjustments under paragraph (6).”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><chapeau>Section 1886(b) (42 U.S.C. 1395ww(b)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in paragraph (1), by inserting “<content>and other than a rehabilitation facility described in subsection (j)(1)</content>” after “subsection (d)(1)(B)”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in paragraph (3)(B)(i), by inserting “<quotedText>and subsection (j)</quotedText>” after “For purposes of subsection (d)”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395">42 USC 1395 note</ref>.</p></sidenote> shall apply to cost reporting periods beginning on or after October <page identifier="/us/stat/111/414">111 STAT. 414</page>1, 2000, except that the Secretary of Health and Human Services may require the submission of data under section 1886(j)(2)(D) of the Social Security Act (as added by subsection (a)) on and after the date of the enactment of this section.</content> </subsection> </section> <section> <num value="4422">SEC. 4422.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395ww">42 USC 1395ww note</ref>.</p></sidenote> <heading>DEVELOPMENT OF PROPOSAL ON PAYMENTS FOR LONG-TERM CARE HOSPITALS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Legislative proposal</inline>.—</heading><content>The Secretary of Health and Human Services shall develop a legislative proposal for establishing a case-mix adjusted prospective payment system for payment of long-term care hospitals described in section 1886(d)(1)(B)(iv) of the Social Security Act (42 U.S.C. 1395ww(d)(1)(B)(iv)) under the medicare program. Such system shall include an adequate patient classification system that reflects the differences in patient resource use and costs among such hospitals.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Collection of data and evaluation</inline>.—</heading><chapeau>In developing the legislative proposal described in paragraph (1), the Secretary—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>may require such long-term care hospitals to submit such information to the Secretary as the Secretary may require to develop the proposal; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>shall consider several payment methodologies, including the feasibility of expanding the current diagnosis-related groups and prospective payment system established under section 1886(d) of the Social Security Act to apply to payments under the medicare program to long-term care hospitals.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than October 1, 1999, the Secretary shall submit to the appropriate committees of Congress a report that includes the legislative proposal developed under subsection (a)(1).</content> </subsection> </section> </subchapter> </chapter> <chapter> <num value="3">CHAPTER 3—</num><heading>PAYMENT FOR SKILLED NURSING FACILITIES</heading> <section> <num value="4431">SEC. 4431.</num> <heading>EXTENSION OF COST LIMITS.</heading> <content>The last sentence of section 1888(a) (42 U.S.C. 1395yy(a)) is amended by striking “<quotedText>subsection</quotedText>” the last place it appears and all that follows and inserting “<quotedText>subsection, except that the limits effective for cost reporting periods beginning on or after October 1, 1997, shall be based on the limits effective for cost reporting periods beginning on or after October 1, 1996.</quotedText>”.</content> </section> <section> <num value="4432">SEC. 4432.</num> <heading>PROSPECTIVE PAYMENT FOR SKILLED NURSING FACILITY SERVICES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 1888 (42 U.S.C. 1395yy) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Prospective Payment</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Payment provision</inline>.—</heading><chapeau>Notwithstanding any other provision of this title, subject to paragraph (7), the amount of the payment for all costs (as defined in paragraph (2)(B)) of covered skilled nursing facility services (as defined in paragraph (2)(A)) for each day of such services furnished—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>in a cost reporting period during the transition period (as defined in paragraph (2)(E)), is equal to the sum of—<page identifier="/us/stat/111/415">111 STAT. 415</page></chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the non-Federal percentage of the facility-specific per diem rate (computed under paragraph (3)), and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the Federal percentage of the adjusted Federal per diem rate (determined under paragraph (4)) applicable to the facility; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>after the transition period is equal to the adjusted Federal per diem rate applicable to the facility.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this subsection:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Covered skilled nursing facility services</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘covered skilled nursing facility services’—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>means post-hospital extended care services as defined in section 1861(i) for which benefits are provided under part A; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>includes all items and services (other than services described in clause (ii)) for which payment may be made under part B and which are furnished to an individual who is a resident of a skilled nursing facility during the period in which the individual is provided covered post-hospital extended care services.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Services excluded</inline>.—</heading><content>Services described in this clause are physicians’ services, services described by clauses (i) through (iii) of section 1861(s)(2)(K), certified nurse-midwife services, qualified psychologist services, services of a certified registered nurse anesthetist, items and services described in subparagraphs (F) and (O) of section 1861(s)(2), and, only with respect to services furnished during 1998, the transportation costs of electrocardiogram equipment for electrocardiogram test services (HCPCS Code R0076). Services described in this clause do not include any physical, occupational, or speech-language therapy services regardless of whether or not the services are furnished by, or under the supervision of, a physician or other health care professional.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">All costs</inline>.—</heading><content>The term ‘all costs’ means routine service costs, ancillary costs, and capital-related costs of covered skilled nursing facility services, but does not include costs associated with approved educational activities.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Non-federal percentage; federal percentage</inline>.—</heading><chapeau>For—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the first cost reporting period (as defined in subparagraph (D)) of a facility, the ‘non-Federal percentage’ is 75 percent and the ‘Federal percentage’ is 25 percent;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the next cost reporting period of such facility, the ‘non-Federal percentage’ is 50 percent and the ‘Federal percentage’ is 50 percent; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>the subsequent cost reporting period of such facility, the ‘non-Federal percentage’ is 25 percent and the ‘Federal percentage’ is 75 percent.<page identifier="/us/stat/111/416">111 STAT. 416</page></content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">First cost reporting period</inline>.—</heading><content>The term ‘first cost reporting period’ means, with respect to a skilled nursing facility, the first cost reporting period of the facility beginning on or after July 1, 1998.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Transition period</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The term ‘transition period’ means, with respect to a skilled nursing facility, the 3 cost reporting periods of the facility beginning with the first cost reporting period.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Treatment of new skilled nursing facilities</inline>.—</heading><content>In the case of a skilled nursing facility that first received payment for services under this title on or after October 1, 1995, payment for such services shall be made under this subsection as if all services were furnished after the transition period.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Determination of facility specific per diem rates</inline>.—</heading><chapeau>The Secretary shall determine a facility-specific per diem rate for each skilled nursing facility not described in paragraph (2)(E)(ii) for a cost reporting period as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Determining base payments</inline>.—</heading><chapeau>The Secretary shall determine, on a per diem basis, the total of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the allowable costs of extended care services for the facility for cost reporting periods beginning in fiscal year 1995, including costs associated with facilities described in subsection (d), with appropriate adjustments (as determined by the Secretary) to nonsettled cost reports, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>an estimate of the amounts that would be payable under part B (disregarding any applicable deductibles, coinsurance, and copayments) for covered skilled nursing facility services described in paragraph (2)(A)(i)(H) furnished during such period to an individual who is a resident of the facility, regardless of whether or not the payment was made to the facility or to another entity.</content></clause> <continuation class="indent0 fontsize10">In making appropriate adjustments under clause (i), the Secretary shall take into account exceptions and shall take into account exemptions but, with respect to exemptions, only to the extent that routine costs do not exceed 150 percent of the routine cost limits otherwise applicable but for the exemption.</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Update to first cost reporting period</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subject to clause (ii), the Secretary shall update the amount determined under subparagraph (A), for each cost reporting period after the cost reporting period described in subparagraph (A)(i) and up to the first cost reporting period by a factor equal to the skilled nursing facility market basket percentage increase minus 1 percentage point.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Certain demonstration projects</inline>.—</heading><content>In the case of a facility participating in the Nursing Home Case-Mix and Quality Demonstration (RUGS–III), there shall be substituted for the amount described in clause (i) the RUGS–III rate received by the facility for 1997.<page identifier="/us/stat/111/417">111 STAT. 417</page></content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Updating to applicable cost reporting period</inline>.—</heading><content>The Secretary shall update the amount determined under subparagraph (B) for each cost reporting period beginning with the first cost reporting period and up to and including the cost reporting period involved by a factor equal to the facility-specific update factor.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Facility-specific update factor</inline>—</heading><chapeau>For purposes of this paragraph, the ‘facility-specific update factor’ for cost reporting periods beginning during—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>during each of fiscal years 1998 and 1999, is equal to the skilled nursing facility market basket percentage increase for such fiscal year minus 1 percentage point, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>during each subsequent fiscal year is equal to the skilled nursing facility market basket percentage increase for such fiscal year.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Federal per diem rate</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Determination of historical per diem for facilities</inline>.—</heading><chapeau>For each skilled nursing facility that received payments for post-hospital extended care services during a cost reporting period beginning in fiscal year 1995 and that was subject to (and not exempted from) the per diem limits referred to in paragraph (1) or (2) of subsection (a) (and facilities described in subsection (d)), the Secretary shall estimate, on a per diem basis for such cost reporting period, the total of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the allowable costs of extended care services (excluding exceptions payments) for the facility for cost reporting periods beginning in 1995 with appropriate adjustments (as determined by the Secretary) to nonsettled cost reports, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>an estimate of the amounts that would be payable under part B (disregarding any applicable deductibles, coinsurance, and copayments) for covered skilled nursing facility services described in paragraph (2)(A)(i)(II) furnished during such period to an individual who is a resident of the facility, regardless of whether or not the payment was made to the facility or to another entity.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Update to first fiscal year</inline>.—</heading><content>The Secretary shall update the amount determined under subparagraph (A), for each cost reporting period after the cost reporting period described in subparagraph (A)(i) and up to the first cost reporting period by a factor equal to the skilled nursing facility market basket percentage increase reduced (on an annualized basis) by 1 percentage point.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Computation of standardized per diem rate</inline>.—</heading><chapeau>The Secretary shall standardize the amount updated under subparagraph (B) for each facility by—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>adjusting for variations among facilities by area in the average facility wage level per diem, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>adjusting for variations in case mix per diem among facilities.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Computation of weighted average per diem rates</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">All facilities</inline>.—</heading><content>The Secretary shall compute a weighted average per diem rate for all facilities by <page identifier="/us/stat/111/418">111 STAT. 418</page>computing an average of the standardized amounts computed under subparagraph (C), weighted for each facility by the number of days of extended care services furnished during the cost reporting period referred to in subparagraph (A).</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Freestanding facilities</inline>.—</heading><content>The Secretary shall compute a weighted average per diem rate for freestanding facilities by computing an average of the standardized amounts computed under subparagraph (C) only for such facilities , weighted for each facility by the number of days of extended care services furnished during the cost reporting period referred to in subparagraph (A).</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Separate computation</inline>.—</heading><content>The Secretary may compute and apply such averages separately for facilities located in urban and rural areas (as defined in section 1886(d)(2)(D)).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Updating</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Initial period</inline>.—</heading><content>For the initial period beginning on July 1, 1998, and ending on September 30, 1999, the Secretary shall compute for skilled nursing facilities an unadjusted federal per diem rate equal to the average of the weighted average per diem rates computed under clauses (i) and (ii) of subparagraph (D), increased by skilled nursing facility market basket percentage change for such period minus 1 percentage point.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Subsequent fiscal years</inline>.—</heading><chapeau>The Secretary shall compute an unadjusted federal per diem rate equal to the federal per diem rate computed under this subparagraph—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>for fiscal year 2000, the rate computed for the initial period described in clause (i), increased by the skilled nursing facility market basket percentage change for the initial period minus 1 percentage point;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>for each of fiscal years 2001 and 2002, the rate computed for the previous fiscal year increased by the skilled nursing facility market basket percentage change for the fiscal year involved minus 1 percentage point; and</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>for each subsequent fiscal year, the rate computed for the previous fiscal year increased by the skilled nursing facility market basket percentage change for the fiscal year involved.</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <heading><inline class="smallCaps">Adjustment for case mix creep</inline>.—</heading><content>Insofar as the Secretary determines that the adjustments under subparagraph (G)(i) for a previous fiscal year (or estimates that such adjustments for a future fiscal year) did (or are likely to) result in a change in aggregate payments under this subsection during the fiscal year that are a result of changes in the coding or classification of residents that do not reflect real changes in case mix, the Secretary may adjust unadjusted Federal per diem rates for subsequent fiscal years so as to eliminate the effect of such coding or classification changes.<page identifier="/us/stat/111/419">111 STAT. 419</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <heading><inline class="smallCaps">Determination of federal rate</inline>.—</heading><chapeau>The Secretary shall compute for each skilled nursing facility for each fiscal year (beginning with the initial period described in subparagraph (E)(i)) an adjusted Federal per diem rate equal to the unadjusted Federal per diem rate determined under subparagraph (E), as adjusted under subparagraph (F), and as further adjusted as follows:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Adjustment for case mix</inline>.—</heading><content>The Secretary shall provide for an appropriate adjustment to account for case mix. Such adjustment shall be based on a resident classification system, established by the Secretary, that accounts for the relative resource utilization of different patient types. The case mix adjustment shall be based on resident assessment data and other data that the Secretary considers appropriate.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Adjustment for geographic variations in labor costs</inline>.—</heading><content>The Secretary shall adjust the portion of such per diem rate attributable to wages and wage-related costs for the area in which the facility is located compared to the national average of such costs using an appropriate wage index as determined by the Secretary. Such adjustment shall be done in a manner that does not result in aggregate payments under this subsection that are greater or less than those that would otherwise be made if such adjustment had not been made.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num> <heading><inline class="smallCaps">Publication of information on per diem rates</inline>.—</heading><chapeau><sidenote><p class="indent0 firstIndent0 fontsize8">Federal Register, publication.</p></sidenote>The Secretary shall provide for publication in the Federal Register, before May 1, 1998 (with respect to fiscal period described in subparagraph (E)(i)) and before the August 1 preceding each succeeding fiscal year (with respect to that succeeding fiscal year), of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the unadjusted Federal per diem rates to be applied to days of covered skilled nursing facility services furnished during the fiscal year,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the case mix classification system to be applied under subparagraph (G)(i) with respect to such services during the fiscal year, and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>the factors to be applied in making the area wage adjustment under subparagraph (G)(ii) with respect to such services.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Skilled nursing facility market basket index and percentage</inline>.—</heading><chapeau>For purposes of this subsection:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Skilled nursing facility market basket index</inline>.—</heading><content>The Secretary shall establish a skilled nursing facility market basket index that reflects changes over time in the prices of an appropriate mix of goods and services included in covered skilled nursing facility services.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Skilled nursing facility market basket percentage</inline>.—</heading><content>The term ‘skilled nursing facility market basket percentage’ means, for a fiscal year or other annual period and as calculated by the Secretary, the percentage change in the skilled nursing facility market basket index (established under subparagraph (A)) from the midpoint of the prior fiscal year (or period) to the midpoint of the fiscal year (or other period) involved.<page identifier="/us/stat/111/420">111 STAT. 420</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Submission of resident assessment data</inline>.—</heading><content>A skilled nursing facility, or a facility described in paragraph (7)(B), shall provide the Secretary, in a manner and within the timeframes prescribed by the Secretary, the resident assessment data necessary to develop and implement the rates under this subsection. For purposes of meeting such requirement, a skilled nursing facility, or a facility described in paragraph (7), may submit the resident assessment data required under section 1819(b)(3), using the standard instrument designated by the State under section 1819(e)(5).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Transition for medicare swing bed hospitals</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall determine an appropriate manner in which to apply this subsection to the facilities described in subparagraph (B), taking into account the purposes of this subsection, and shall provide that at the end of the transition period (as defined in paragraph (2)(E)) such facilities shall be paid only under this subsection. Payment shall not be made under this subsection to such facilities for cost reporting periods beginning before such date (not earlier than July 1, 1999) as the Secretary specifies.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Facilities described</inline>.—</heading><content>The facilities described in this subparagraph are facilities that have in effect an agreement described in section 1883, for which payment is made for the furnishing of extended care services on a reasonable cost basis under section 1814(1) (as in effect on and after such date).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <heading><inline class="smallCaps">Limitation on review</inline>.—</heading><chapeau>There shall be no administrative or judicial review under section 1869, 1878, or otherwise of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the establishment of Federal per diem rates under paragraph (4), including the computation of the standardized per diem rates under paragraph (4)(C), adjustments and corrections for case mix under paragraphs (4)(F) and (4)(G)(i), and adjustments for variations in labor-related costs under paragraph (4)(G)(ii);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the establishment of facility specific rates before January 1, 1999, (except any determination of costs paid under part A of this title); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>the establishment of transitional amounts under paragraph (7).”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Consolidated Billing</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">For snf services</inline>.—</heading><chapeau>Section 1862(a) (42 U.S.C. 1395y(a)), as amended by 4319(b), is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>or</quotedText>” at the end of paragraph (16),</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking the period at the end of paragraph (17) and inserting “<quotedText>; or</quotedText>”, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by inserting after paragraph (17) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="18">“(18)</num> <content>which are covered skilled nursing facility services described in section 1888(e)(2)(A)(i) and which are furnished to an individual who is a resident of a skilled nursing facility or of a part of a facility that includes a skilled nursing facility (as determined under regulations), by an entity other than the skilled nursing facility, unless the services are furnished under arrangements (as defined in section 1861(w)(1)) with the entity made by the skilled nursing facility.”.<page identifier="/us/stat/111/421">111 STAT. 421</page></content></paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Requiring payment for all part b items and services to be made to facility</inline>.—</heading><chapeau>The first sentence of section 1842(b)(6) (42 U.S.C. 1395u(b)(6)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>and (D)</quotedText>” and inserting “<quotedText>(D)</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking the period at the end and inserting the following: “, find (E) in the case of an item or service (other than services described in section 1888(e)(2)(A)(ii)) furnished to an individual who (at the time the item or service is furnished) is a resident of a skilled nursing facility or of a part of a facility that includes a skilled nursing facility (as determined under regulations), payment shall be made to the facility (without regard to whether or not the item or service was furnished by the facility, by others under arrangement with them made by the facility, under any other contracting or consulting arrangement, or otherwise).”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Payment rules</inline>.—</heading><content>Section 1888(e) (42 U.S.C. 1395yy(e)), as added by subsection (a), is amended by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="9">“(9)</num> <heading><inline class="smallCaps">Payment for certain services</inline>.—</heading><content>In the case of an item or service furnished to a resident of a skilled nursing facility or a part of a facility that includes a skilled nursing facility (as determined under regulations) for which payment would (but for this paragraph) be made under part B in an amount determined in accordance with section 1833(a)(2)(B), the amount of the payment under such part shall be the amount provided under the fee schedule for such item or service.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">“(10)</num> <heading><inline class="smallCaps">Required coding</inline>.—</heading><content>No payment may be made under part B for items and services (other than services described in paragraph (2)(A)(ii)) furnished to an individual who is a resident of a skilled nursing facility or of a part of a facility that includes a skilled nursing facility (as determined under regulations), unless the claim for such payment includes a code (or codes) under a uniform coding system specified by the Secretary that identifies the items or services famished”.</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Facility provider number required on claims submitted by physicians</inline>.—</heading><content>Section 1842 (42 U.S.C. 1395u) is amended by adding at the end the following new section: <quotedContent> <subsection class="indent0 fontsize10"> <num value="t">“(t)</num> <content>Each request for payment, or bill submitted, for an item or service famished by a physician to an individual who is a resident of a skilled nursing facility or of a part of a facility that includes a skilled nursing facility (as determined under regulations), for which payment may be made under this part shall include the facility’s medicare provider number.”.</content> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content> Section 1819(b)(3)(C)(i) (42 U.S.C. 1395i–3(b)(3)(C)(i)) is amended by striking “<quotedText>Such</quotedText>” and inserting “<quotedText>Subject to the timeframes prescribed by the Secretary under section 1888(e)(6), such</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Section 1832(a)(1) (42 U.S.C. 1395k(a)(D) is amended by striking “<quotedText>(2);</quotedText>” and inserting “<quotedText>(2) and section 1842(b)(6)(E);</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>Section 1833(a)(2)(B) (42 U.S.C. 13951(a)(2)(B)) is amended by inserting “<quotedText>or section 1888(e)(9)</quotedText>” after “section 1886”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <chapeau>Section 1861(h) (42 U.S.C 1395x(h)) is amended—<page identifier="/us/stat/111/422">111 STAT. 422</page></chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>in the opening paragraph, by striking “<quotedText>paragraphs (3) and (6)</quotedText>” and inserting “<quotedText>paragraphs (3), (6), and (7)</quotedText>”, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>in paragraph (7), after “skilled nursing facilities”, by inserting “<quotedText>, or by others under arrangements with them made by the facility</quotedText>”.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>Section 1861(v)(7)(D) (42 U.S.C. 1395x(v)(7)(D)) is amended by inserting “<quotedText>subsections (a) through (c) of</quotedText>” before “section 1888.”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F)</num> <chapeau>Section 1866(a)(1)(H) (42 U.S.C. 1395cc(a)(1)(H)) is amended—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by redesignating clauses (i) and (ii) as subclauses (I) and (II) respectively,</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by inserting “<quotedText>(i)</quotedText>” after “(H)”, and</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>by adding after clause (i), as so redesignated, the following new clause: <quotedContent> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>in the case of skilled nursing facilities which provide covered skilled nursing facility services—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>that are furnished to an individual who is a resident of the skilled nursing facility, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>for which the individual is entitled to have payment made under this title,</content></subclause> <continuation class="indent0 fontsize10">to have items and services (other than services described in section 1888(e)(2)(A)(ii)) furnished by the skilled nursing facility or otherwise under arrangements (as defined in section 1861(w)(1)) made by the skilled nursing facility,”.</continuation> </clause> </quotedContent> </content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">(G)</num> <content>Section 1883(a)(2)(B)(ii)(II) (42 U.S.C. 1395tt(a)(2)(B)(ii)(II)) is amended by inserting “<quotedText>subsections (a) through (d) of</quotedText>” before “section 1888”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">(H)</num> <content>Section 1888(d)(1) (42 U.S.C. 1395yy(d)(D) is amended by striking “<quotedText>Any skilled nursing facility</quotedText>” and inserting “<quotedText>Subject to subsection (e), any skilled nursing facility</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395yy">42 use 1395yy note</ref>.</p></sidenote> <heading><inline class="smallCaps">Medical Review Process</inline>.—</heading><content>In order to ensure that medicare beneficiaries are furnished appropriate services in skilled nursing facilities, the Secretary of Health and Human Services shall establish and implement a thorough medical review process to examine the effects of the amendments made by this section on the quality of covered skilled nursing facility services furnished to medicare beneficiaries. In developing such a medical review process, the Secretary shall place a particular emphasis on the quality of non-routine covered services and physicians’ services for which payment is made under title XVIII of the Social Security Act.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395i–3">42 use 1395i–3 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section are effective for cost reporting periods beginning on or after July 1, 1998; except that the amendments made by subsection (b) shall apply to items and services furnished on or after July 1, 1998.</content> </subsection> </section> </chapter> <chapter> <num value="4">CHAPTER 4—</num><heading>PROVISIONS RELATED TO HOSPICE SERVICES</heading> <section> <num value="4441">SEC. 4441.</num> <heading>PAYMENTS FOR HOSPICE SERVICES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Payment Update</inline>.—</heading><chapeau>Section 1814(i)(1)(C)(ii) (42 U.S.C. 1395f(i)(1)(C)(ii)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subclause (V), by striking “<quotedText>and</quotedText>” at the end;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by redesignating subclause (VI) as subclause (VII); and<page identifier="/us/stat/111/423">111 STAT. 423</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by inserting after subclause (V) the following new subclause: <quotedContent> <subclause class="indent4 fontsize10"><num value="VI">“(VI)</num> <content>for each of fiscal years 1998 through 2002, the market basket percentage increase for the fiscal year involved minus 1.0 percentage points; and”.</content></subclause> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Collection of Data</inline>.—</heading><content>Section 1814(i) (42 U.S.C. 1395f(i)) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>Hospice programs providing hospice care for which payment is made under this subsection shall submit to the Secretary such data with respect to the costs for providing such care for each fiscal year, beginning with fiscal year 1999, as the Secretary determines necessary”.</content></paragraph> </quotedContent> </content></subsection> </section> <section> <num value="4442">SEC. 4442.</num> <heading>PAYMENT FOR HOME HOSPICE CARE BASED ON LOCATION WHERE CARE IS FURNISHED.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 1814(i)(2) (42 U.S.C. 1395f(i)(2)) is amended by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>A hospice program shall submit claims for payment for hospice care furnished in an individual’s home under this title only on the basis of the geographic location at which the service is furnished, as determined by the Secretary.”.</content></subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a)<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395f">42 USC 1395f note</ref>.</p></sidenote> applies to cost reporting periods beginning on or after October 1, 1997.</content> </subsection> </section> <section> <num value="4443">SEC. 4443.</num> <heading>HOSPICE CARE BENEFITS PERIODS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Restructuring of Benefit Period</inline>.—</heading><content>Section 1812 (42 U.S.C. 1395d) is amended in subsections (a)(4) and (d)(1) by striking “<quotedText>, a subsequent period of 30 days, and a subsequent extension period</quotedText>” and inserting “<quotedText>and an unlimited number of subsequent periods of 60 days each</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><paragraph class="inline"><num value="1">(1)</num> <content>Section 1812 (42 U.S.C. 1395d) is amended in subsection (d)(2)(B) by striking “<quotedText>90- or 30-day period or a subsequent extension period</quotedText>” and inserting “<quotedText>90-day period or a subsequent 60-day period</quotedText>”.</content></paragraph> <paragraph class="inline"><num value="2">(2)</num> <chapeau>Section 1814(a)(7)(A) (42 U.S.C. 1395f)(a)(7)(A)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in clause (i), by inserting “<quotedText>and</quotedText>” at the end;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>in clause (ii)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by striking “<quotedText>30-day</quotedText>” and inserting “<quotedText>60-day</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking “<quotedText>, and</quotedText>” at the end and inserting a period; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by striking clause (iii).</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="4444">SEC. 4444.</num> <heading>OTHER ITEMS AND SERVICES INCLUDED IN HOSPICE CARE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 1861(dd)(1) (42 U.S.C. 1395x(dd)(1)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subparagraph (G), by striking “<quotedText>and</quotedText>” at the end;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subparagraph (H), by striking the period at the end and inserting “<quotedText>, and</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by inserting after subparagraph (H) the following: <quotedContent> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>any other item or service which is specified in the plan and for which payment may otherwise be made under this title.”.</content></subclause> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a)<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x note</ref>.</p></sidenote> shall apply with respect to items or services furnished on or after April 1, 1998.<page identifier="/us/stat/111/424">111 STAT. 424</page></content> </subsection> </section> <section> <num value="4445">SEC. 4445.</num> <heading>CONTRACTING WITH INDEPENDENT PHYSICIANS OR PHYSICIAN GROUPS FOR HOSPICE CARE SERVICES PERMITTED.</heading> <chapeau>Section 1861(dd)(2) (42 U.S.C. 1395x(dd)(2)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subparagraph (A)(ii)(I), by striking “<quotedText>(F),</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subparagraph (B)(i), by inserting “<quotedText>or, in the case of a physician described in subclause (I), under contract with</quotedText>” after “employed by”.</content></paragraph> </section> <section> <num value="4446">SEC. 4446.</num> <heading>WAIVER OF CERTAIN STAFFING REQUIREMENTS FOR HOSPICE CARE PROGRAMS IN NONURBANIZED AREAS.</heading> <chapeau>Section 1861(dd)(5) (42 U.S.C. 1395x(dd)(5)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subparagraph (B), by inserting “<quotedText>or (C)</quotedText>” after “subparagraph (A)” each place it appears; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <chapeau>The Secretary may waive the requirements of paragraph (2)(A)(i) and (2)(A)(ii) for an agency or organization with respect to the services described in paragraph (1)(B) and, with respect to dietary counseling, paragraph (1)(H), if such agency or organization—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>is located in an area which is not an urbanized area (as defined by the Bureau of Census), and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>demonstrates to the satisfaction of the Secretary that the agency or organization has been unable, despite diligent efforts, to recruit appropriate personnel.”.</content></clause> </subparagraph> </quotedContent> </content></paragraph> </section> <section> <num value="4447">SEC. 4447.</num> <heading>LIMITATION ON LIABILITY OF BENEFICIARIES FOR CERTAIN HOSPICE COVERAGE DENIALS.</heading> <chapeau>Section 1879(g) (42 U.S.C. 1395pp(g)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and moving such subparagraphs 2 ems to the right;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<quotedText>is,</quotedText>” and inserting “<quotedText>is—</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by making the remaining text of subsection (g), as amended, that follows “is—” a new paragraph (1) and indenting such paragraph 2 ems to the right;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>by striking the period at the end and inserting “<quotedText>; and</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>with respect to the provision of hospice care to an individual, a determination that the individual is not terminally ill”.</content></paragraph> </quotedContent> </content></paragraph> </section> <section> <num value="4448">SEC. 4448.</num> <heading>EXTENDING THE PERIOD FOR PHYSICIAN CERTIFICATION OF AN INDIVIDUAL’S TERMINAL ILLNESS.</heading> <content>Section 1814(a)(7)(A)(i) (42 U.S.C. 1395f(a)(7)(A)(i)) is amended in the matter following subclause (II) by striking “<quotedText>, not later than 2 days after hospice care is initiated (or, if each certify verbally not later than 2 days after hospice care is initiated, not later than 8 days after such care is initiated)</quotedText>” and inserting “<quotedText>at the beginning of the period</quotedText>”.</content> </section> <section> <num value="4449">SEC. 4449.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395d">42 USC 1395d note</ref>.</p></sidenote> <heading>EFFECTIVE DATE.</heading> <content>Except as otherwise provided in this chapter, the amendments made by this chapter apply to benefits provided on or after the date of the enactment of this chapter, regardless of whether or not an individual has made an election under section 1812(d) of the Social Security Act (42 U.S.C. 1395d(d)) before such date.<page identifier="/us/stat/111/425">111 STAT. 425</page></content> </section> </chapter> <chapter> <num value="5">CHAPTER 5—</num><heading>OTHER PAYMENT PROVISIONS</heading> <section> <num value="4451">SEC. 4451.</num> <heading>REDUCTIONS IN PAYMENTS FOR ENROLLEE BAD DEBT.</heading> <content>Section 1861(v)(1) (42 U.S.C. 1395x(v)(1)) is amended by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="T">“(T)</num> <chapeau>In determining such reasonable costs for hospitals, no reduction in copayments under section 1833(t)(5)(B) shall be treated as a bad debt and the amount of bad debts otherwise treated as allowable costs which are attributable to the deductibles and coinsurance amounts under this title shall be reduced—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>for cost reporting periods beginning during fiscal year 1998, by 25 percent of such amount otherwise allowable,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>for cost reporting periods beginning during fiscal year 1999, by 40 percent of such amount otherwise allowable, and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>for cost reporting periods beginning during a subsequent fiscal year, by 45 percent of such amount otherwise allowable.”.</content></clause> </subparagraph> </quotedContent> </content></section> <section> <num value="4452">SEC. 4452.</num> <heading>PERMANENT EXTENSION OF HEMOPHILIA PASS-THROUGH PAYMENT.</heading> <content>Section 6011(d) of OBRA–1989 (as amended by section 13505 of OBRA–1993) is amended by striking “<quotedText>and shall expire September<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395ww">42 USC 1395ww note</ref>.</p></sidenote> 30, 1994.</quotedText>” and inserting “<quotedText>and on or before September 30, 1994, and on or after October 1, 1997.</quotedText>”.</content> </section> <section> <num value="4453">SEC. 4453.</num> <heading>REDUCTION IN PART A MEDICARE PREMIUM FOR CERTAIN PUBLIC RETIREES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 1818(d) (42 U.S.C. 1395i–2(d)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in paragraph (2), by striking “<quotedText>paragraph (4)</quotedText>” and inserting “<quotedText>paragraphs (4) and (5)</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num><subparagraph class="inline"><num value="A">(A)</num> <chapeau>The amount of the monthly premium shall be zero in the case of an individual who is a person described in subparagraph (B) for a month, if—</chapeau> <clause class="indent2 fontsize10"><num value="i">“(i)</num> <content>the individual’s premium under this section for the month is not (and will not be) paid for, in whole or in part, by a State (under title XIX or otherwise), a political subdivision of a State, or an agency or instrumentality of one or more States or political subdivisions thereof; and</content></clause> <clause class="indent2 fontsize10"><num value="ii">“(ii)</num> <content>in each of 84 months before such month, the individual was enrolled in this part under this section and the payment of the individual’s premium under this section for the month was not paid for, in whole or in part, by a State (under title XIX or otherwise), a political subdivision of a State, or an agency or instrumentality of one or more States or political subdivisions thereof.</content></clause> </subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B)</num> <chapeau>A person described in this subparagraph for a month is a person who establishes to the satisfaction of the Secretary that, as of the last day of the previous month—</chapeau> <clause class="indent2 fontsize10"><num value="i">“(i)</num><subclause class="inline"><num value="I">(I)</num> <content>the person was receiving cash benefits under a qualified State or local government retirement system (as defined in subparagraph (C)) on the basis of the person’s employment in one or more positions covered under any such system, and (II) the person would have at least 40 quarters of coverage under title II if remuneration for medicare qualified government employment (as defined in paragraph (1) of section 210(p), <page identifier="/us/stat/111/426">111 STAT. 426</page>but determined without regard to paragraph (3) of such section) paid to such person were treated as wages paid to such person and credited for purposes of determining quarters of coverage under section 213;</content></subclause></clause> <clause class="indent2 fontsize10"><num value="ii">“(ii)</num><subclause class="inline"><num value="I">(I)</num> <content>the person was married (and had been married for the previous 1-year period) to an individual who is described in clause (i), or (II) the person met the requirement of clause (i)(II) and was married (and had been married for the previous 1-year period) to an individual described in clause (i)(I);</content></subclause></clause> <clause class="indent2 fontsize10"><num value="iii">“(iii)</num> <content>the person had been married to an individual for a period of at least 1 year (at the time of such individual’s death) if (I) the individual was described in clause (i) at the time of the individual’s death, or (II) the person met the requirement of clause (i)(II) and the individual was described in clause (i)(I) at the time of the individual’s death; or</content></clause> <clause class="indent2 fontsize10"><num value="iv">“(iv)</num> <content>the person is divorced from an individual and had been married to the individual for a period of at least 10 years (at the time of the divorce) if (I) the individual was described in clause (i) at the time of the divorce, or (II) the person met the requirement of clause (i)(II) and the individual was described in clause (i)(I) at the time of the divorce.</content></clause> </subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">“(C)</num> <chapeau>For purposes of subparagraph (B)(i)(I), the term ‘qualified State or local government retirement system’ means a retirement system that—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>is established or maintained by a State or political subdivision thereof, or an agency or instrumentality of one or more States or political subdivisions thereof;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>covers positions of some or all employees of such a State, subdivision, agency, or instrumentality; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>does not adjust cash retirement benefits based on eligibility for a reduction in premium under this paragraph.”.</content></clause> </subparagraph> </paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395i–2">42 USC 1395i–2 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by subsection (a) shall apply to premiums for months beginning with January 1998, and months before such month may be taken into account for purposes of meeting the requirement of section 1818(d)(5)(B)(iii) of the Social Security Act, as added by subsection (a).</content> </subsection> </section> <section> <num value="4454">SEC. 4454.</num> <heading>COVERAGE OF SERVICES IN RELIGIOUS NONMEDICAL HEALTH CARE INSTITUTIONS UNDER THE MEDICARE AND MEDICAID PROGRAMS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Medicare Coverage</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Section 1861 (42 U.S.C. 1395x) (as amended by sections 4103 and 4106) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <chapeau>in the sixth sentence of subsection (e)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by striking “<quotedText>includes</quotedText>” and all that follows up to “but only” and inserting “<quotedText>includes a religious nonmedical health care institution (as defined in subsection (ss)(1)),</quotedText>”, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by inserting “<quotedText>consistent with section 1821</quotedText>” before the period;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>in subsection (y)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by amending the heading to read as follows: <quotedContent> <heading>“Extended Care in Religious Nonmedical Health Care Institutions”,</heading> </quotedContent> </content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>in paragraph (1), by striking “<quotedText>includes</quotedText>” and all that follows up to “but only” and inserting “<quotedText>includes <page identifier="/us/stat/111/427">111 STAT. 427</page>a religious nonmedical health care institution (as defined in subsection (ss)(11)),</quotedText>”, and</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>by inserting “<quotedText>consistent with section 1821</quotedText>” before the period; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by adding at the end the following: <quotedContent> <level> <heading class="centered">“Religious Nonmedical Health Care Institution</heading> <subsection class="indent0 fontsize10"> <num value="ss">“(ss)</num><paragraph class="inline"><num value="1">(1)</num> <chapeau>The term ‘religious nonmedical health care institution’ means an institution that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>is described in subsection (c)(3) of section 501 of the Internal Revenue Code of 1986 and is exempt from taxes under subsection (a) of such section;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>is lawfully operated under all applicable Federal, State, and local laws and regulations;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>provides only nonmedical nursing items and services exclusively to patients who choose to rely solely upon a religious method of healing and for whom the acceptance of medical health services would be inconsistent with their religious beliefs;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>provides such nonmedical items and services exclusively through nonmedical nursing personnel who are experienced in caring for the physical needs of such patients;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>provides such nonmedical items and services to inpatients on a 24-hour basis;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>on the basis of its religious beliefs, does not provide through its personnel or otherwise medical items and services (including any medical screening, examination, diagnosis, prognosis, treatment, or the administration of drugs) for its patients;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num><clause class="inline"><num value="i">(i)</num> <content>is not owed by, under common ownership with, or has an ownership interest in, a provider of medical treatment of services;</content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii)</num> <chapeau>is not affiliated with—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>a provider of medical treatment or services, or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>an individual who has an ownership interest in a provider of medical treatment or services;</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num> <chapeau>has in effect a utilization review plan which—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>provides for the review of admissions to the institution, of the duration of stays therein, of cases of continuous extended duration, and of the items and services furnished by the institution,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>requires that such reviews be made by an appropriate committee of the institution that includes the individuals responsible for overall administration and for supervision of nursing personnel at the institution,</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>provides that records be maintained of the meetings, decisions, and actions of such committee, and</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>meets such other requirements as the Secretary finds necessary to establish an effective utilization review plan;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="I">“(I)</num> <content>provides the Secretary with such information as the Secretary may require to implement section 1821, <page identifier="/us/stat/111/428">111 STAT. 428</page>including information relating to quality of care and coverage determinations; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="J">“(J)</num> <content>meets such other requirements as the Secretary finds necessary in the interest of the health and safety of individuals who are furnished services in the institution.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>To the extent that the Secretary finds that the accreditation of an institution by a State, regional, or national agency or association provides reasonable assurances that any or all of the requirements of paragraph (1) are met or exceeded, the Secretary may treat such institution as meeting the condition or conditions with respect to which the Secretary made such finding.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num><subparagraph class="inline"><num value="A">(A)</num><clause class="inline"><num value="i">(i)</num> <content>In administering this subsection and section 1821, the Secretary shall not require any patient of a religious nonmedical health care institution to undergo medical screening, examination, diagnosis, prognosis, or treatment or to accept any other medical health care service, if such patient (or legal representative of the patient) objects thereto on religious grounds.</content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii)</num> <content>Clause (i) shall not be construed as preventing the Secretary from requiring under section 1821(a)(2) the provision of sufficient information regarding an individual’s condition as a condition for receipt of benefits under part A for services provided in such an institution.</content></clause> </subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B)</num><clause class="inline"><num value="i">(i)</num> <content>In administering this subsection and section 1821, the Secretary shall not subject a religious nonmedical health care institution or its personnel to any medical supervision, regulation, or control, insofar as such supervision, regulation, or control would be contrary to the religious beliefs observed by the institution or such personnel.</content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii)</num> <content>Clause (i) shall not be construed as preventing the Secretary from reviewing items and services billed by the institution to the extent the Secretary determines such review to be necessary to determine whether such items and services were not covered under part A, are excessive, or are fraudulent.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num><subparagraph class="inline"><num value="A">(A)</num> <content>For purposes of paragraph (1)(G)(i), an ownership interest of less than 5 percent shall not be taken into account.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B)</num> <chapeau>For purposes of paragraph (1)(G)(ii), none of the following shall be considered to create an affiliation:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>An individual serving as an uncompensated director, trustee, officer, or other member of the governing body of a religious nonmedical health care institution.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>An individual who is a director, trustee, officer, employee, or staff member of a religious nonmedical health care institution having a family relationship with an individual who is affiliated with (or has an ownership interest in) a provider of medical treatment or services.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>An individual or entity furnishing goods or services as a vendor to both providers of medical treatment or services and religious nonmedical health care institutions.”.</content></clause> </subparagraph> </paragraph> </subsection> </level> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conditions of coverage</inline>.—</heading><content>Part A of title XVIII is amended by adding at the end the following new section: <quotedContent> <level> <heading class="centered">“<inline class="smallCaps">conditions for coverage of religious nonmedical health care institutional services</inline></heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395i–5">42 USC 1395i–5</ref>.</p></sidenote> <section> <num value="1821">“<inline class="smallCaps">Sec</inline>. 1821.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Subject to subsections (c) and (d), payment under this part may be made for inpatient hospital services or post-hospital extended care services furnished an individual in a religious nonmedical health care institution only if—<page identifier="/us/stat/111/429">111 STAT. 429</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the individual has an election in effect for such benefits under subsection (b); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the individual has a condition such that the individual would qualify for benefits under this part for inpatient hospital services or extended care services, respectively, if the individual were an inpatient or resident in a hospital or skilled nursing facility that was not such an institution.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Election</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>An individual may make an election under this subsection in a form and manner specified by the Secretary consistent with this subsection. Unless otherwise provided, such an election shall take effect immediately upon its execution. Such an election, once made, shall continue in effect until revoked.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Form</inline>.—</heading><chapeau>The election form under this subsection shall include the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>A written statement, signed by the individual (or such individual’s legal representative), that—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the individual is conscientiously opposed to acceptance of nonexcepted medical treatment; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the individual’s acceptance of nonexcepted medical treatment would be inconsistent with the individual’s sincere religious beliefs.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>A statement that the receipt of nonexcepted medical services shall constitute a revocation of the election and may limit further receipt of services described in subsection (a).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Revocation</inline>.—</heading><content>An election under this subsection by an individual may be revoked by voluntarily notifying the Secretary in writing of such revocation and shall be deemed to be revoked if the individual receives nonexcepted medical treatment for which reimbursement is made under this title.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Limitation on subsequent elections</inline>.—</heading><chapeau>Once an individual’s election under this subsection has been made and revoked twice—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the next election may not become effective until the date that is 1 year after the date of most recent previous revocation, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>any succeeding election may not become effective until the date that is 5 years after the date of the most recent previous revocation.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Excepted medical treatment</inline>.—</heading><chapeau>For purposes of this subsection:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Excepted medical treatment</inline>.—</heading><chapeau>The term ‘excepted medical treatment’ means medical care or treatment (including medical and other health services)—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>received involuntarily, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>required under Federal or State law or law of a political subdivision of a State.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Nonexcepted medical treatment</inline>.—</heading><content>The term ‘nonexcepted medical treatment’ means medical care or treatment (including medical and other health services) other than excepted medical treatment.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Monitoring and Safeguard Against Excessive Expenditures</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Estimate of expenditures</inline>.—</heading><content>Before the beginning of each fiscal year (beginning with fiscal year 2000), the Secretary <page identifier="/us/stat/111/430">111 STAT. 430</page>shall estimate the level of expenditures under this part for services described in subsection (a) for that fiscal year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Adjustment in payments</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Proportional adjustment</inline>.—</heading><content>If the Secretary determines that the level estimated under paragraph (1) for a fiscal year will exceed the trigger level (as defined in subparagraph (O) for that fiscal year, the Secretary shall, subject to subparagraph (B), provide for such a proportional reduction in payment amounts under this part for services described in subsection (a) for the fiscal year involved as will assure that such level (taking into account any adjustment under subparagraph (B)) does not exceed the trigger level for that fiscal year.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Alternative adjustments</inline>.—</heading><content>The Secretary may, instead of making some or all of the reduction described in subparagraph (A), impose such other conditions or limitations with respect to the coverage of covered services (including limitations on new elections of coverage and new facilities) as may be appropriate to reduce the level of expenditures described in paragraph (1) to the trigger level.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Trigger level</inline>.—</heading><chapeau>For purposes of this subsection—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subject to adjustment under paragraph (3)(B), the ‘trigger level’ for a year is the unadjusted trigger level described in clause (ii).</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Unadjusted trigger level</inline>.—</heading><chapeau>The ‘unadjusted trigger level’ for—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>fiscal year 1998, is $20,000,000, or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>a succeeding fiscal year is the amount specified under this clause for the previous fiscal year increased by the percentage increase in the consumer price index for all urban consumers (all items; United States city average) for the 12-month period ending with July preceding the beginning of the fiscal year.</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Prohibition of administrative and judicial review</inline>.—</heading><content>There shall be no administrative or judicial review under section 1869, 1878, or otherwise of the estimation of expenditures under subparagraph (A) or the application of reduction amounts under subparagraph (B).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Effect on billing</inline>.—</heading><content>Notwithstanding any other provision of this title, in the case of a reduction in payment provided under this subsection for services of a religious nonmedical health care institution provided to an individual, the amount that the institution is otherwise permitted to charge the individual for such services is increased by the amount of such reduction.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Monitoring expenditure level</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall monitor the expenditure level described in paragraph (2)(A) for each fiscal year (beginning with fiscal year 1999).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Adjustment in trigger level</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If the Secretary determines that such level for a fiscal year exceeded, or was less than, the trigger level for that fiscal year, then, subject to clause (ii), the trigger level for the succeeding fiscal <page identifier="/us/stat/111/431">111 STAT. 431</page>year shall be reduced, or increased, respectively, by the amount of such excess or deficit.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Limitation on carryforward</inline>.—</heading><content>In no case may the increase effected under clause (i) for a fiscal year exceed $50,000,000.</content></clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Sunset</inline>.—</heading><content>If the Secretary determines that the level of expenditures described in subsection (c)(1) for 3 consecutive fiscal years (with the first such year being not earlier than fiscal year 2002) exceeds the trigger level for such expenditures for such years (as determined under subsection (c)(2)), benefits shall be paid under this part for services described in subsection (a) and furnished on or after the first January 1 that occurs after such 3 consecutive years only with respect to an individual who has an election in effect under subsection (b) as of such January 1 and only during the duration of such election.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Annual Report</inline>.—</heading><chapeau>At the beginning of each fiscal year (beginning with fiscal year 1999), the Secretary shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate an annual report on coverage and expenditures for services described in subsection (a) under this part and under State plans under title XIX. Such report shall include—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>level of expenditures described in subsection (c)(1) for the previous fiscal year and estimated for the fiscal year involved;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>trends in such level; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>facts and circumstances of any significant change in such level from the level in previous fiscal years.”.</content></paragraph> </subsection> </section> </level> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Medicaid</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>The third sentence of section 1902(a) (42 U.S.C. 1396a(a)) is amended<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396g">42 USC 1396g</ref>.</p></sidenote> by striking all that follows “shall not apply” and inserting “<quotedText>to a religious nonmedical health care institution (as defined in section 1861(ss)(1)).</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Section 1908(e)(1) (42 U.S.C. 1396g–1(e)(D) is amended by striking all that follows “does not include” and inserting “<quotedText>a religious nonmedical health care institution (as defined in section 1861(ss)(1)).</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Section 1122(h) (42 U.S.C. 1320a–1(h)) is amended by striking all that follows “shall not apply to” and inserting “<quotedText>a religious nonmedical health care institution (as defined in section 1861(ss)(1)).</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>Section 1162 (42 U.S.C. 1320c–11) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by amending the heading to read as follows: <quotedContent> <heading class="centered">“<inline class="smallCaps">exemptions for religious nonmedical health care institutions</inline>”; and</heading> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking all that follows “shall not apply with respect to a” and inserting “<quotedText>religious nonmedical health care institution (as defined in section 1861(ss)(1)).</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395i–5">42 USC 1395i–5 note</ref>.</p></sidenote> shall take effect on the date of the enactment of this Act and shall apply to items and services furnished on or after such date. By not later than July 1, 1998, the Secretary of Health and Human<sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote> Services shall first issue regulations to carry out such amendments. Such regulations may be issued so they are effective on an interim <page identifier="/us/stat/111/432">111 STAT. 432</page>basis pending notice and opportunity for public comment. For periods before the effective date of such regulations, such regulations shall recognize elections entered into in good faith in order to comply with the requirements of section 1821(b) of the Social Security Act.</content> </subsection> </section> </chapter> </subtitle> <subtitle> <num value="F">Subtitle F—</num><heading>Provisions Relating to Part B Only</heading> <chapter> <num value="1">CHAPTER 1—</num><heading>SERVICES OF HEALTH PROFESSIONALS</heading> <subchapter> <num value="A">Subchapter A—</num><heading>Physicians’ Services</heading> <section> <num value="4501">SEC. 4501.</num> <heading>ESTABLISHMENT OF SINGLE CONVERSION FACTOR FOR 1998.</heading> <subsection class="indent0 fontsize10"><num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 1848(d)(1) (42 U.S.C. 1395w–4(d)(1)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by redesignating subparagraph (C) as subparagraph (D), and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting after subparagraph (B) the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Special rules for 1998</inline>.—</heading><content>The single conversion factor for 1998 under this subsection shall be the conversion factor for primary care services for 1997, increased by the Secretary’s estimate of the weighted average of the three separate updates that would otherwise occur were it not for the enactment of chapter 1 of subtitle F of title IV of the Balanced Budget Act of 1997.”.</content></subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><chapeau>Section 1848 (42 U.S.C. 1395w–4) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>(or factors)</quotedText>” each place it appears in subsection (a)(1)(A) and (d)(1)(D)(ii) (as redesignated by subsection (a)(1)),</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subsection (d)(1)(A), by striking “<quotedText>or updates</quotedText>”,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>in subsection (d)(1)(D) (as redesignated by subsection (a)(1)), by striking “<quotedText>(or updates)</quotedText>” each place it appears, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>in subsection (j)(1), by striking “<quotedText>The term</quotedText>” and inserting “<quotedText>For services furnished before January 1, 1998, the term</quotedText>”.</content></paragraph> </subsection> </section> <section> <num value="4502">SEC. 4502.</num> <heading>ESTABLISHING UPDATE TO CONVERSION FACTOR TO MATCH SPENDING UNDER SUSTAINABLE GROWTH RATE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Update</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 1848(d)(3) (42 U.S.C. 1395w–4(d)(3)) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <chapeau><inline class="smallCaps">Update</inline>.—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Unless otherwise provided by law, subject to subparagraph (D) and the budget-neutrality factor determined by the Secretary under subsection (c)(2)(B)(ii), the update to the single conversion factor established in paragraph (1)(C) for a year beginning with 1999 is equal to the product of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>1 plus the Secretary’s estimate of the percentage increase in the MEI (as defined in section 1842(i)(3)) for the year (divided by 100), and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>1 plus the Secretary’s estimate of the update adjustment factor for the year (divided by 100), minus 1 and multiplied by 100.<page identifier="/us/stat/111/433">111 STAT. 433</page></content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Update adjustment factor</inline>.—</heading><chapeau>For purposes of subparagraph (A)(ii), the ‘update adjustment factor’ for a year is equal (as estimated by the Secretary) to—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the difference between (I) the sum of the allowed expenditures for physicians’ services (as determined under subparagraph (O) for the period beginning April 1, 1997, and ending on March 31 of the year involved, and (II) the amount of actual expenditures for physicians’ services furnished during the period beginning April 1, 1997, and ending on March 31 of the preceding year; divided by</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the actual expenditures for physicians’ services for the 12-month period ending on March 31 of the preceding year, increased by the sustainable growth rate under subsection (f) for the fiscal year which begins during such 12-month period.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Determination of allowed expenditures</inline>.—</heading><chapeau>For purposes of this paragraph, the allowed expenditures for physicians’ services for the 12-month period ending with March 31 of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>1997 is equal to the actual expenditures for physicians’ services furnished during such 12-month period, as estimated by the Secretary; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>a subsequent year is equal to the allowed expenditures for physicians’ services for the previous year, increased by the sustainable growth rate under subsection (f) for the fiscal year which begins during such 12-month period.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Restriction on variation from medicare economic index</inline>.—</heading><chapeau>Notwithstanding the amount of the update adjustment factor determined under subparagraph (B) for a year, the update in the conversion factor under this paragraph for the year may not be—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>greater than 100 times the following amount: (1.03 + (MEI percentage/100)) − 1; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>less than 100 times the following amount: (0.93 + (MEI percentage/100)) − 1,</content></clause> <continuation class="indent0 fontsize10">where ‘MEI percentage’ means the Secretary’s estimate of the percentage increase in the MEI (as defined in section 1842(i)(3)) for the year involved.”.</continuation> </subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendment made by this subsection<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395w–4">42 USC 1395w–4 note</ref>.</p></sidenote> shall apply to the update for years beginning with note 1999.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Elimination of Report</inline>.—</heading><content>Section 1848(d) (42 U.S.C. 1395w–4(d)) is amended by striking paragraph (2).</content> </subsection> </section> <section> <num value="4503">SEC. 4503.</num> <heading>REPLACEMENT OF VOLUME PERFORMANCE STANDARD WITH SUSTAINABLE GROWTH RATE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 1848(f) (42 U.S.C. 1395w–4(f)) is amended by striking paragraphs (2) through (5) and inserting the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Specification of growth rate</inline>.—</heading><chapeau>The sustainable growth rate for all physicians’ services for a fiscal year (beginning with fiscal year 1998) shall be equal to the product of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>1 plus the Secretary’s estimate of the weighted average percentage increase (divided by 100) in the fees for all physicians’ services in the fiscal year involved,<page identifier="/us/stat/111/434">111 STAT. 434</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>1 plus the Secretary’s estimate of the percentage change (divided by 100) in the average number of individuals enrolled under this part (other than Medicare+Choice plan enrollees) from the previous fiscal year to the fiscal year involved,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>1 plus the Secretary’s estimate of the projected percentage growth in real gross domestic product per capita (divided by 100) from the previous fiscal year to the fiscal year involved, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>1 plus the Secretary’s estimate of the percentage change (divided by 100) in expenditures for all physicians’ services in the fiscal year (compared with the previous fiscal year) which will result from changes in law and regulations, determined without taking into account estimated changes in expenditures resulting from the update adjustment factor determined under subsection (d)(3)(B), minus 1 and multiplied by 100.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>In this subsection:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Services included in physicians’ services</inline>.—</heading><content>The term ‘physicians’ services’ includes other items and services (such as clinical diagnostic laboratory tests and radiology services), specified by the Secretary, that are commonly performed or furnished by a physician or in a physician’s office, but does not include services furnished to a Medicare+Choice plan enrollee.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Medicare+choice plan enrollee</inline>.—</heading><content>The term ‘Medicare+Choice plan enrollee’ means, with respect to a fiscal year, an individual enrolled under this part who has elected to receive benefits under this title for the fiscal year through a Medicare+Choice plan offered under part C, and also includes an individual who is receiving benefits under this part through enrollment with an eligible organization with a risk-sharing contract under section 1876.”.</content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>So much of section 1848(f) (42 U.S.C. 1395w–4(f)) as precedes paragraph (2) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Sustainable Growth Rate</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Federal Register, publication.</p></sidenote> <heading><inline class="smallCaps">Publication</inline>.—</heading><content>The Secretary shall cause to have published in the Federal Register the sustainable growth rate for each fiscal year beginning with fiscal year 1998. Such publication shall occur by not later than August 1 before each fiscal year, except that such rate for fiscal year 1998 shall be published not later than November 1, 1997.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> </section> <section> <num value="4504">SEC. 4504.</num> <heading>PAYMENT RULES FOR ANESTHESIA SERVICES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 1848(d)(1) (42 U.S.C. 1395w–4(d)(1)), as amended by section 4501(a), is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subparagraph (C), by striking “<quotedText>The single</quotedText>” and inserting “<quotedText>Except as provided in subparagraph (D), the single</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by redesignating subparagraph (D) as subparagraph (E); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by inserting after subparagraph (C) the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">”(D)</num> <heading><inline class="smallCaps">Special rules for anesthesia services</inline>.—</heading><content>The separate conversion factor for anesthesia services for a year shall be equal to 46 percent of the single conversion <page identifier="/us/stat/111/435">111 STAT. 435</page>factor established for other physicians’ services, except as adjusted for changes in work, practice expense, or malpractice relative value units.”.</content></subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by subsection<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395w–4">42 USC 1395w–4 note</ref>.</p></sidenote> (a) shall apply to services furnished on or after January 1, 1998.</content> </subsection> </section> <section> <num value="4505">SEC. 4505.</num> <heading>IMPLEMENTATION OF RESOURCE-BASED METHODOLOGIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">1-Year Delay in Implementation</inline>.—</heading><chapeau>Section 1848(c) (42 U.S.C. 1395w–4(c)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in paragraph (2)(C)(ii), in the matter before subclause (I) and after subclause (II), by striking “<quotedText>1998</quotedText>” and inserting “<quotedText>1999</quotedText>” each place it appears; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in paragraph (3)(C)(ii), by striking “<quotedText>1998</quotedText>” and inserting “<quotedText>1999</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Phased-in Implementation</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Section 1848(c)(2)(C)(ii) (42 U.S.C. 1395w–4(c)(2)(C)(ii)) is further amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking the comma at the end of clause (ii) and inserting a period and the following: <quotedContent> <p class="indent0 fontsize10">“For 1999, such number of units shall be determined based 75 percent on such product and based 25 percent on the relative practice expense resources involved in furnishing the service. For 2000, such number of units shall be determined based 50 percent on such product and based 50 percent on such relative practice expense resources. For 2001, such number of units shall be determined based 25 percent on such product and based 75 percent on such relative practice expense resources. For a subsequent year, such number of units shall be determined based entirely on such relative practice expense resources.”.</p> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conforming amendment</inline>.—</heading><content>Section 1848(c)(3)(C)(ii) (42 U.S.C. 1395w–4(c)(3)(C)(ii)), as amended by subsection (a)(2), is amended by striking “<quotedText>1999</quotedText>” and inserting “<quotedText>2002</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Review by Comptroller General</inline>.—</heading><chapeau>The Comptroller General of the United States shall review and evaluate the proposed rule on resource-based methodology for practice expenses issued by the Secretary of Health and Human Services. The Comptroller General shall, within 6 months of the date of the enactment of this Act, report to the Committees on Commerce and Ways and Means of the House of Representatives and the Committee on Finance of the Senate the results of its evaluation, including an analysis of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>the adequacy of the data used in preparing the rule,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>categories of allowable costs,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>methods for allocating direct and indirect expenses,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>the potential impact of the rule on beneficiary access to services, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>any other matters related to the appropriateness of resource-based methodology for practice expenses.</content></paragraph> <continuation class="indent0 fontsize10">The Comptroller General shall consult with representatives of physicians’ organizations with respect to matters of both data and methodology.</continuation> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Requirements for Developing New Resource-Based Practice Expense Relative Value Units</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395w–4">42 USC 1395w–4 note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Development</inline>.—</heading><chapeau>For purposes of section 1848(c)(2)(C)(ii) of the Social Security Act, the Secretary of Health and Human <page identifier="/us/stat/111/436">111 STAT. 436</page>Services shall develop new resource-based relative value units. In developing such units the Secretary shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>utilize, to the maximum extent practicable, generally accepted cost accounting principles which (i) recognize all staff, equipment, supplies, and expenses, not just those which can be tied to specific procedures, and (ii) use actual data on equipment utilization and other key assumptions;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>consult with organizations representing physicians regarding methodology and data to be used; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>develop a refinement process to be used during each of the 4 years of the transition period.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Report</inline>.—</heading><content>The Secretary shall transmit a report by March 1, 1998, on the development of resource-based relative value units under paragraph (1) to the Committee on Ways and Means and the Committee on Commerce of the House of Representatives and the Committee on Finance of the Senate. The report shall include a presentation of data to be used in developing the value units and an explanation of the methodology.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Publication.</p></sidenote> <heading><inline class="smallCaps">Notice of proposed rulemaking</inline>.—</heading><content>The Secretary shall publish a notice of proposed rulemaking with the new resource-based relative value units on or before May 1, 1998, and shall allow for a 90-day public comment period.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Items included</inline>.—</heading><chapeau>The new proposed rule shall consider the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Impact projections which compare new proposed payment amounts on data on actual physician practice expenses.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Impact projections for hospital-based and other specialties, geographic payment localities, and urban versus rural localities.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Adjustments to Relative Value Units for 1998</inline>.—</heading><content>Section 1848(c)(2) (42 U.S.C. 1395w–4(c)(2)) is amended by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <heading><inline class="smallCaps">Adjustments in relative value units for 1998</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The Secretary shall—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>subject to clauses (iv) and (v), reduce the practice expense relative value units applied to any services described in clause (ii) furnished in 1998 to a number equal to 110 percent of the number of work relative value units, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>increase the practice expense relative value units for office visit procedure codes during 1998 by a uniform percentage which the Secretary estimates will result in an aggregate increase in payments for such services equal to the aggregate decrease in payments by reason of subclause (I).</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Services covered</inline>.—</heading><chapeau>For purposes of clause (i), the services described in this clause are physicians’ services that are not described in clause (iii) and for which—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>there are work relative value units, and<page identifier="/us/stat/111/437">111 STAT. 437</page></content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the number of practice expense relative value units (determined for 1998) exceeds 110 percent of the number of work relative value units (determined for such year).</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Excluded services</inline>.—</heading><content>For purposes of clause (ii), the services described in this clause are services which the Secretary determines at least 75 percent of which are provided under this title in an office setting.</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <heading><inline class="smallCaps">Limitation on aggregate reallocation</inline>.—</heading><content>If the application of clause (i)(I) would result in an aggregate amount of reductions under such clause in excess of $390,000,000, such clause shall be applied by substituting for 110 percent such greater percentage as the Secretary estimates will result in the aggregate amount of such reductions equaling $390,000,000.</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <heading><inline class="smallCaps">No reduction for certain services</inline>.—</heading><content>Practice expense relative value units for a procedure performed in an office or in a setting out of an office shall not be reduced under clause (i) if the in-office or out-of-office practice expense relative value, respectively, for the procedure would increase under the proposed rule on resource-based practice expenses issued by the Secretary on June 18, 1997 (62 Federal Register 33158 et seq.).”.</content></clause> </subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Application of Resource-Based Methodology to Malpractice Relative Value Units</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Section 1848(c)(2)(C)(iii) (42 U.S.C. 1395w–4(c)(2)(C)(iii)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <chapeau>in paragraph (2)(C)(iii)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by inserting “<quotedText>for the service for years before 2000</quotedText>” before “equal”, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking the period at the end and inserting a comma and by adding at the end the following flush matter: <quotedContent> <p class="indent0 fontsize10">“and for years beginning with 2000 based on the malpractice expense resources involved in furnishing the service.”; and</p> </quotedContent> </content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B)</num> <content>in paragraph (3)(C)(iii), by striking “<quotedText>The malpractice</quotedText>” and inserting “<quotedText>For years before 1999, the malpractice</quotedText>”.</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Application of certain budget neutrality provisions</inline>.—</heading><content><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395w–4">42 USC 1395w–4 note</ref>.</p></sidenote>In implementing the amendment made by paragraph (1)(A)(ii), the provisions of clauses (ii)(II) and (iii) of section 1848(c)(2)(B) of the Social Security Act (42 U.S.C. 1395w–4(c)(2)(B)) shall apply in the same manner as they apply to adjustments under clause (ii)(I) of such section.</content></paragraph> </subsection> </section> <section> <num value="4506">SEC. 4506.</num> <heading>DISSEMINATION OF INFORMATION ON HIGH PER DISCHARGE RELATIVE VALUES FOR IN-HOSPITAL PHYSICIANS’ SERVICES.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395ww">42 USC 1395ww note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Determination and Notice Concerning Hospital-Specific Per Discharge Relative Values</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For 1999 and 2001 the Secretary of Health and Human Services shall determine for each hospital—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>the hospital-specific per discharge relative value under subsection (b); and<page identifier="/us/stat/111/438">111 STAT. 438</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>whether the hospital-specific relative value is projected to be excessive (as determined based on such value represented as a percentage of the median of hospital-specific per discharge relative values determined under subsection (b)).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Notice to subset of medical staffs; evaluation of responses</inline>.—</heading><content>The Secretary shall notify the medical executive committee of a subset of the hospitals identified under paragraph (1)(B) as having an excessive hospital-specific relative value, of the determinations made with respect to the medical staff under paragraph (1). The Secretary shall evaluate the responses of the hospitals so notified with the responses of other hospitals so identified that were not so notified.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Determination of Hospital-Specific Per Discharge Relative Values</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>For purposes of this section, the hospital-specific per discharge relative value for the medical staff of a hospital (other than a teaching hospital) for a year shall be equal to the average per discharge relative value (as determined under section 1848(c)(2) of the Social Security Act (42 U.S.C. 1395w–4(c)(2)) for physicians’ services furnished to inpatients of the hospital by the hospital’s medical staff (excluding interns and residents) during the second year preceding that calendar year, adjusted for variations in case-mix among hospitals and disproportionate share status and teaching status among hospitals (as determined by the Secretary under paragraph (3)).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Special rule for teaching hospitals</inline>.—</heading><chapeau>The hospital-specific relative value projected for a teaching hospital in a year shall be equal to the sum of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>the average per discharge relative value (as determined under section 1848(c)(2) of such Act) for physicians’ services furnished to inpatients of the hospital by the hospital’s medical staff (excluding interns and residents) during the second year preceding that calendar year, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>the equivalent per discharge relative value (as determined under such section) for physicians’ services furnished to inpatients of the hospital by interns and residents of the hospital during the second year preceding that calendar year, adjusted for variations in case-mix among hospitals, and in disproportionate share status and teaching status among hospitals (as determined by the Secretary under paragraph (3)).</content></subparagraph> <continuation class="indent0 fontsize10">The Secretary shall determine the equivalent relative value unit per discharge for interns and residents based on the best available data and may make such adjustment in the aggregate.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Adjustment for teaching and disproportionate share hospitals</inline>.—</heading><content>The Secretary shall adjust the allowable per discharge relative values otherwise determined under this subsection to take into account the needs of teaching hospitals and hospitals receiving additional payments under subparagraphs (F) and (G) of section 1886(d)(5) of the Social Security Act (42 U.S.C. 1395ww(d)(5)). The adjustment for teaching status or disproportionate share shall not be less than zero.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this section:<page identifier="/us/stat/111/439">111 STAT. 439</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Hospital</inline>.—</heading><content>The term “hospital” means a subsection (d) hospital as defined in section 1886(d) of the Social Security Act (42 U.S.C. 1395ww(d)).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Medical staff</inline>.—</heading><chapeau>An individual furnishing a physician’s service is considered to be on the medical staff of a hospital—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <chapeau>if (in accordance with requirements for hospitals established by the Joint Commission on Accreditation of Health Organizations)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>the individual is subject to bylaws, rules, and regulations established by the hospital to provide a framework for the self-governance of medical staff activities,</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>subject to the bylaws, rules, and regulations, the individual has clinical privileges granted by the hospital’s governing body, and</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>under the clinical privileges, the individual may provide physicians’ services independently within the scope of the individual’s clinical privileges, or</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>if the physician provides at least one service to an individual entitled to benefits under this title in that hospital.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Physicians’ services</inline>.—</heading><content>The term “physicians’ services” means the services described in section 1848(j)(3) of the Social Security Act (42 U.S.C. 1395w–4(j)(3)).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Rural area; urban area</inline>.—</heading><content>The terms “rural area” and “urban area” have the meaning given those terms under section 1886(d)(2)(D) of such Act (42 U.S.C. 1395ww(d)(2)(D)).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <heading><inline class="smallCaps">Secretary</inline>.—</heading><content>The term “Secretary” means the Secretary of Health and Human Services.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <heading><inline class="smallCaps">Teaching hospital</inline>.—</heading><content>The term “teaching hospital” means a hospital which has a teaching program approved as specified in section 1861(b)(6) of the Social Security Act (42 U.S.C. 1395x(b)(6)).</content></paragraph> </subsection> </section> <section> <num value="4507">SEC. 4507.</num> <heading>USE OF PRIVATE CONTRACTS BY MEDICARE BENEFICIARIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Items or Services Provided Through Private Contracts</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 1802 (42 U.S.C. 1395a) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Use of Private Contracts by Medicare Beneficiaries</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="i">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Subject to the provisions of this subsection, nothing in this title shall prohibit a physician or practitioner from entering into a private contract with a medicare beneficiary for any item or service—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>for which no claim for payment is to be submitted under this title, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>for which the physician or practitioner receives—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>no reimbursement under this title directly or on a capitated basis, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>receives no amount for such item or service from an organization which receives reimbursement for such item or service under this title directly or on a capitated basis.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Beneficiary protections</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Paragraph (1) shall not apply to any contract unless—<page identifier="/us/stat/111/440">111 STAT. 440</page></chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the contract is in writing and is signed by the medicare beneficiary before any item or service is provided pursuant to the contract;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the contract contains the items described in subparagraph (B); and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>the contract is not entered into at a time when the medicare beneficiary is facing an emergency or urgent health care situation.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Items required to be included in contract</inline>.—</heading><chapeau>Any contract to provide items and services to which paragraph (1) applies shall clearly indicate to the medicare beneficiary that by signing such contract the beneficiary—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>agrees not to submit a claim (or to request that the physician or practitioner submit a claim) under this title for such items or services even if such items or services are otherwise covered by this title;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>agrees to be responsible, whether through insurance or otherwise, for payment of such items or services and understands that no reimbursement will be provided under this title for such items or services;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>acknowledges that no limits under this title (including the limits under section 1848(g)) apply to amounts that may be charged for such items or services;</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>acknowledges that Medigap plans under section 1882 do not, and other supplemental insurance plans may elect not to, make payments for such items and services because payment is not made under this title; and</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>acknowledges that the medicare beneficiary has the right to have such items or services provided by other physicians or practitioners for whom payment would be made under this title.</content></clause> <continuation class="indent0 fontsize10">Such contract shall also clearly indicate whether the physician or practitioner is excluded from participation under the medicare program under section 1128.</continuation> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Physician or practitioner requirements</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Paragraph (1) shall not apply to any contract entered into by a physician or practitioner unless an affidavit described in subparagraph (B) is in effect during the period any item or service is to be provided pursuant to the contract.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Affidavit</inline>.—</heading><chapeau>An affidavit is described in this subparagraph if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the affidavit identifies the physician or practitioner and is in writing and is signed by the physician or practitioner;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the affidavit provides that the physician or practitioner will not submit any claim under this title for any item or service provided to any medicare beneficiary (and will not receive any reimbursement or amount described in paragraph (1)(B) for any such item or service) during the 2-year period beginning on the date the affidavit is signed; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>a copy of the affidavit is filed with the Secretary no later than 10 days after the first contract to which such affidavit applies is entered into.<page identifier="/us/stat/111/441">111 STAT. 441</page></content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Enforcement</inline>.—</heading><chapeau>If a physician or practitioner signing an affidavit under subparagraph (B) knowingly and willfully submits a claim under this title for any item or service provided during the 2-year period described in subparagraph (B)(ii) (or receives any reimbursement or amount described in paragraph (1)(B) for any such item or service) with respect to such affidavit—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>this subsection shall not apply with respect to any items and services provided by the physician or practitioner pursuant to any contract on and after the date of such submission and before the end of such period; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>no payment shall be made under this title for any item or service furnished by the physician or practitioner during the period described in clause (i) (and no reimbursement or payment of any amount described in paragraph (1)(B) shall be made for any such item or service).</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Limitation on actual charge and claim submission requirement not applicable</inline>.—</heading><content>Section 1848(g) shall not apply with respect to any item or service provided to a medicare beneficiary under a contract described in paragraph (1).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>In this subsection:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Medicare beneficiary</inline>.—</heading><content>The term ‘medicare beneficiary’ means an individual who is entitled to benefits under part A or enrolled under part B.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Physician</inline>.—</heading><content>The term ‘physician’ has the meaning given such term by section 1861(r)(1).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Practitioner</inline>.—</heading><content>The term ‘practitioner’ has the meaning given such term by section 1842(b)(18)(C).”</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Section 1802 (42 U.S.C. 1395a) is amended by striking “<quotedText>Any</quotedText>” and inserting “<quotedText>(a) <inline class="smallCaps">Basic Freedom of Choice</inline>.—Any</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Section 1862(a) (42 U.S.C. 1395y(a)), as amended by sections 4319(b) and 4432, is amended by striking “<quotedText>or</quotedText>” at the end of paragraph (17), by striking the period at the end of paragraph (18) and inserting “<quotedText>; or</quotedText>”, and by adding after paragraph (18) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="19">“(19)</num> <content>which are for items or services which are furnished pursuant to a private contract described in section 1802(b).”.</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Report</inline>.—</heading><chapeau>Not later than October 1, 2001, the Secretary<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395a">42 USC 1395a note</ref>.</p></sidenote> of Health and Human Services shall submit a report to Congress on the effect on the program under this title of private contracts entered into under the amendment made by subsection (a). Such report shall include—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>analyses regarding—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>the fiscal impact of such contracts on total Federal expenditures under title XVIII of the Social Security Act and on out-of-pocket expenditures by medicare beneficiaries for health services under such title; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>the quality of the health services provided under such contracts; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>recommendations as to whether medicare beneficiaries should continue to be able to enter private contracts under section 1802(b) of such Act (as added by subsection (a)) and <page identifier="/us/stat/111/442">111 STAT. 442</page>if so, what legislative changes, if any should be made to improve such contracts.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395a">42 USC 1395a note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall apply with respect to contracts entered into on and after January 1, 1998.</content> </subsection> </section> </subchapter> <subchapter> <num value="B">Subchapter B—</num><heading>Other Health Care Professionals</heading> <section> <num value="4511">SEC. 4511.</num> <heading>INCREASED MEDICARE REIMBURSEMENT FOR NURSE PRACTITIONERS AND CLINICAL NURSE SPECIALISTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Removal of Restrictions on Settings</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Clause (ii) of section 1861(s)(2)(K) (42 U.S.C. 1395x(s)(2)(K)) is amended to read as follows: <quotedContent> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>services which would be physicians’ services if furnished by a physician (as defined in subsection (r)(1)) and which are performed by a nurse practitioner or clinical nurse specialist (as defined in subsection (aa)(5)) working in collaboration (as defined in subsection (aa)(6)) with a physician (as defined in subsection (r)(1)) which the nurse practitioner or clinical nurse specialist is legally authorized to perform by the State in which the services are performed, and such services and supplies furnished as an incident to such services as would be covered under subparagraph (A) if furnished incident to a physician’s professional service, but only if no facility or other provider charges or is paid any amounts with respect to the furnishing of such services;”.</content></clause> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading><subparagraph class="inline"><num value="A">(A)</num> <chapeau>Section 1861(s)(2)(K) (42 U.S.C. 1395x(s)(2)(K)) is further amended—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>in clause (i), by inserting “<quotedText>and such services and supplies furnished as incident to such services as would be covered under subparagraph (A) if furnished incident to a physician’s professional service; and</quotedText>” after “are performed,”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking clauses (iii) and (iv).</content></clause> </subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">(B)</num> <content>Section 1861(b)(4) (42 U.S.C. 1395x(b)(4)) is amended by striking “<quotedText>clauses (i) or (iii) of subsection (s)(2)(K)</quotedText>” and inserting “<quotedText>subsection (s)(2)(K)</quotedText>”.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">(C)</num> <content>Section 1862(a)(14) (42 U.S.C. 1395y(a)(14)) is amended by striking “<quotedText>section 1861(s)(2)(K)(i) or 1861(s)(2)(K)(iii)</quotedText>” and inserting “<quotedText>section 1861(s)(2)(K)</quotedText>”.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="D">(D)</num> <content>Section 1866(a)(1)(H) (42 U.S.C. 1395cc(a)(1)(H)) is amended by striking “<quotedText>section 1861(s)(2)(K)(i) or 1861(s)(2)(K)(iii)</quotedText>” and inserting “<quotedText>section 1861(s)(2)(K)</quotedText>”.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="E">(E)</num> <content>Section 1888(e)(2)(A)(ii) (42 U.S.C. 1395yy(e)(2)(A)(ii)), as added by section 4432(a) (relating to prospective payment system for rehabilitation hospitals), is amended by striking “<quotedText>through (iii)</quotedText>” and inserting “<quotedText>and (ii)</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Increased Payment</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Fee schedule amount</inline>.—</heading><content>Subparagraph (O) of section 1833(a)(1) (42 U.S.C. 13951(a)(1)) is amended to read as follows: “(O) with respect to services described in section 1861(s)(2)(K)(ii) (relating to nurse practitioner or clinical nurse specialist services), the amounts paid shall be equal to 80 percent of (i) the lesser of the actual charge or 85 percent of the fee schedule amount provided under section 1848, or (ii) in the case of services as an assistant at surgery, the lesser of the actual charge or 85 percent of the amount that <page identifier="/us/stat/111/443">111 STAT. 443</page>would otherwise be recognized if performed by a physician who is serving as an assistant at surgery; and”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading><chapeau>Section 1833(r) (42 U.S.C. 13951(r)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in paragraph (1), by striking “<quotedText>section 1861(s)(2)(K)(iii) (relating to nurse practitioner or clinical nurse specialist services provided in a rural area)</quotedText>” and inserting “<quotedText>section 1861(s)(2)(K)(ii) (relating to nurse practitioner or clinical nurse specialist services)</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking paragraph (2);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>in paragraph (3), by striking “<quotedText>section 1861(s)(2)(K)(iii)</quotedText>” and inserting “<quotedText>section 1861(s)(2)(K)(ii)</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>by redesignating paragraph (3) as paragraph (2).</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Direct Payment for Nurse Practitioners and Clinical Nurse Specialists</inline>.—</heading><content>Section 1832(a)(2)(B)(iv) (42 U.S.C. 1395k(a)(2)(B)(iv)) is amended by striking “<quotedText>provided in a rural area (as defined in section 1886(d)(2)(D))</quotedText>” and inserting “<quotedText>but only if no facility or other provider charges or is paid any amounts with respect to the furnishing of such services</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Definition of Clinical Nurse Specialist Clarified</inline>.—</heading><chapeau>Section 1861(aa)(5) (42 U.S.C. 1395x(aa)(5)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by inserting “<quotedText>(A)</quotedText>” after “(5)”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<quotedText>The term ‘physician assistant’</quotedText>” and all that follows through “who performs” and inserting “<quotedText>The term ‘physician assistant’ and the term ‘nurse practitioner’ mean, for purposes of this title, a physician assistant or nurse practitioner who performs</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>The term ‘clinical nurse specialist’ means, for purposes of this title, an individual who—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>is a registered nurse and is licensed to practice nursing in the State in which the clinical nurse specialist services are performed; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>holds a master’s degree in a defined clinical area of nursing from an accredited educational institution.”.</content></clause> </subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395k">42 USC 1395k note</ref>.</p></sidenote> shall apply with respect to services furnished and supplies provided on and after January 1, 1998.</content> </subsection> </section> <section> <num value="4512">SEC. 4512.</num> <heading>INCREASED MEDICARE REIMBURSEMENT FOR PHYSICIAN ASSISTANTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Removal of Restriction on Settings</inline>.—</heading><chapeau>Section 1861(s)(2)(K)(i) (42 U.S.C. 1395x(s)(2)(K)(i)), as amended by section 4511, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>(I) in a hospital</quotedText>” and all that follows through “shortage area,”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following: “<quotedText>but only if no facility or other provider charges or is paid any amounts with respect to the furnishing of such services,</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Increased Payment</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Fee schedule amount</inline>.—</heading><chapeau>Section 1833(a)(1)(O) (42 U.S.C. 13951(a)(1)(O)), as amended by section 4511, is further amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>section 1861(s)(2)(K)(ii)</quotedText>” and inserting “<quotedText>1861(s)(2)(K)</quotedText>”, and<page identifier="/us/stat/111/444">111 STAT. 444</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking “<quotedText>nurse practitioner or clinical nurse specialist services</quotedText>” and inserting “<quotedText>services furnished by physician assistants, nurse practitioners, or clinic nurse specialists</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conforming amendment</inline>.—</heading><content>Paragraph (12) of section 1842(b) (42 U.S.C. 1395u(b)) is repealed.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Removal of Restriction on Employment Relationship</inline>.—</heading><content>Section 1842(b)(6) (42 U.S.C. 1395u(b)(6)), as amended by section 4205, is amended by adding at the end the following new sentence: “For purposes of subparagraph (C) of the first sentence of this paragraph, an employment relationship may include any independent contractor arrangement, and employer status shall be determined in accordance with the law of the State in which the services described in such clause are performed.”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395l">42 USC 1395<i>l</i> note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply with respect to services furnished and supplies provided on and after January 1, 1998.</content> </subsection> </section> <section> <num value="4513">SEC. 4513.</num> <heading>NO X-RAY REQUIRED FOR CHIROPRACTIC SERVICES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 1861(r)(5) (42 U.S.C. 1395x(r)(5)) is amended by striking “<quotedText>demonstrated by X-ray to exist</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) applies to services furnished on or after January 1, 2000.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x note</ref>.</p></sidenote> <heading><inline class="smallCaps">Utilization Guidelines</inline>.—</heading><content>The Secretary of Health and Human Services shall develop and implement utilization guidelines relating to the coverage of chiropractic services under part B of title XVIII of the Social Security Act in cases in which a subluxation has not been demonstrated by X-ray to exist.</content> </subsection> </section> </subchapter> </chapter> <chapter> <num value="2">CHAPTER 2—</num><heading>PAYMENT FOR HOSPITAL OUTPATIENT DEPARTMENT SERVICES</heading> <section> <num value="4521">SEC. 4521.</num> <heading>ELIMINATION OF FORMULA-DRIVEN OVERPAYMENTS (FDO) FOR CERTAIN OUTPATIENT HOSPITAL SERVICES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Elimination of FDO for Ambulatory Surgical Center Procedures</inline>.—</heading><chapeau>Section 1833(i)(3)(B)(i)(II) (42 U.S.C. 13951(i)(3)(B)(i)(II)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>of 80 percent</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking the period at the end and inserting the following: “, less the amount a provider may charge as described in clause (ii) of section 1866(a)(2)(A).”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Elimination of FDO for Radiology Services and Diagnostic Procedures</inline>.—</heading><chapeau>Section 1833(n)(1)(B)(i) (42 U.S.C. 13951(n)(1)(B)(i)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>of 80 percent</quotedText>”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting before the period at the end the following: “, less the amount a provider may charge as described in clause (ii) of section 1866(a)(2)(A)”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395l">42 USC 1395<i>l</i> note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to services furnished during portions of cost reporting periods occurring on or after October 1, 1997.</content> </subsection> </section> <section> <num value="4522">SEC. 4522.</num> <heading>EXTENSION OF REDUCTIONS IN PAYMENTS FOR COSTS OF HOSPITAL OUTPATIENT SERVICES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Reduction in Payments for Capital-Related Costs</inline>.—</heading><content>Section 1861(v)(1)(S)(ii)(I) (42 U.S.C. 1395x(v)(1)(S)(ii)(I)) is amended by striking “<quotedText>through 1998</quotedText>” and inserting “<quotedText>through 1999 and during fiscal year 2000 before January 1, 2000</quotedText>”.<page identifier="/us/stat/111/445">111 STAT. 445</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Reduction in Payments for Other Costs</inline>.—</heading><content>Section 1861(v)(1)(S)(ii)(II) (42 U.S.C. 1395x(v)(1)(S)(ii)(II)) is amended by striking “<quotedText>through 1998</quotedText>” and inserting “<quotedText>through 1999 and during fiscal year 2000 before January 1, 2000</quotedText>”.</content> </subsection> </section> <section> <num value="4523">SEC. 4523.</num> <heading>PROSPECTIVE PAYMENT SYSTEM FOR HOSPITAL OUTPATIENT DEPARTMENT SERVICES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 1833 (42 U.S.C. 13951) is amended by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="t">“(t)</num> <heading><inline class="smallCaps">Prospective Payment System for Hospital Outpatient Department Services</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Amount of payment</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>With respect to covered OPD services (as defined in subparagraph (B)) furnished during a year beginning with 1999, the amount of payment under this part shall be determined under a prospective payment system established by the Secretary in accordance with this subsection.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Definition of covered opd services</inline>.—</heading><chapeau>For purposes of this subsection, the term ‘covered OPD services’—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>means hospital outpatient services designated by the Secretary;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>subject to clause (iii), includes inpatient hospital services designated by the Secretary that are covered under this part and furnished to a hospital inpatient who (I) is entitled to benefits under part A but has exhausted benefits for inpatient hospital services during a spell of illness, or (II) is not so entitled; but</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>does not include any therapy services described in subsection (a)(8) or ambulance services, for which payment is made under a fee schedule described in section 1834(k) or section 1834(1).</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">System requirements</inline>.—</heading><chapeau>Under the payment system—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the Secretary shall develop a classification system for covered OPD services;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the Secretary may establish groups of covered OPD services, within the classification system described in subparagraph (A), so that services classified within each group are comparable clinically and with respect to the use of resources;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>the Secretary shall, using data on claims from 1996 and using data from the most recent available cost reports, establish relative payment weights for covered OPD services (and any groups of such services described in subparagraph (B)) based on median hospital costs and shall determine projections of the frequency of utilization of each such service (or group of services) in 1999;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>the Secretary shall determine a wage adjustment factor to adjust the portion of payment and coinsurance attributable to labor-related costs for relative differences in labor and labor-related costs across geographic regions in a budget neutral manner;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>the Secretary shall establish other adjustments, in a budget neutral manner, as determined to be necessary to ensure equitable payments, such as outlier adjustments or adjustments for certain classes of hospitals; and<page identifier="/us/stat/111/446">111 STAT. 446</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>the Secretary shall develop a method for controlling unnecessary increases in the volume of covered OPD services.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Calculation of base amounts</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Aggregate amounts that would be payable if deductibles were disregarded</inline>.—</heading><chapeau>The Secretary shall estimate the sum of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the total amounts that would be payable from the Trust Fund under this part for covered OPD services in 1999, determined without regard to this subsection, as though the deductible under section 1833(b) did not apply, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the total amounts of copayments estimated to be paid under this subsection by beneficiaries to hospitals for covered OPD services in 1999, as though the deductible under section 1833(b) did not apply.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Unadjusted copayment amount</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>For purposes of this subsection, subject to clause (ii), the ‘unadjusted copayment amount’ applicable to a covered OPD service (or group of such services) is 20 percent of the national median of the charges for the service (or services within the group) furnished during 1996, updated to 1999 using the Secretary’s estimate of charge growth during the period.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Adjusted to be 20 percent when fully phased in</inline>.—</heading><content>If the pre-deductible payment percentage for a covered OPD service (or group of such services) furnished in a year would be equal to or exceed 80 percent, then the unadjusted copayment amount shall be 20 percent of amount determined under subparagraph (D).</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Rules for new services</inline>.—</heading><content>The Secretary shall establish rules for establishment of an unadjusted copayment amount for a covered OPD service not furnished during 1996, based upon its classification within a group of such services.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Calculation of conversion factors</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">For 1999</inline>.—</heading> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall establish a 1999 conversion factor for determining the medicare OPD fee schedule amounts for each covered OPD service (or group of such services) furnished in 1999. Such conversion factor shall be established on the basis of the weights and frequencies described in paragraph (2)(C) and in such a manner that the sum for all services and groups of the products (described in subclause (II) for each such service or group) equals the total projected amount described in subparagraph (A).</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <heading><inline class="smallCaps">Product described</inline>.—</heading><content>The Secretary shall determine for each service or group the product of the medicare OPD fee schedule amounts (taking into account appropriate adjustments described in paragraphs (2)(D) and (2)(E)) and the estimated frequencies for such service or group.<page identifier="/us/stat/111/447">111 STAT. 447</page></content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Subsequent years</inline>.—</heading><content>Subject to paragraph (8)(B), the Secretary shall establish a conversion factor for covered OPD services furnished in subsequent years in an amount equal to the conversion factor established under this subparagraph and applicable to such services furnished in the previous year increased by the OPD fee schedule increase factor specified under clause (iii) for the year involved.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Opd fee schedule increase factor</inline>.—</heading><content>For purposes of this subparagraph, the ‘OPD fee schedule increase factor’ for services furnished in a year is equal to the market basket percentage increase applicable under section 1886(b)(3)(B)(iii) to hospital discharges occurring during the fiscal year ending in such year, reduced by 1 percentage point for such factor for services furnished in each of 2000, 2001, and 2002. In applying the previous sentence for years beginning with 2000, the Secretary may substitute for the market basket percentage increase an annual percentage increase that is computed and applied with respect to covered OPD services furnished in a year in the same manner as the market basket percentage increase is determined and applied to inpatient hospital services for discharges occurring in a fiscal year.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Calculation of medicare opd fee schedule amounts</inline>.—</heading><chapeau>The Secretary shall compute a medicare OPD fee schedule amount for each covered OPD service (or group of such services) furnished in a year, in an amount equal to the product of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the conversion factor computed under subparagraph (C) for the year, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the relative payment weight (determined under paragraph (2)(C)) for the service or group.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Pre-deductible payment percentage</inline>.—</heading><chapeau>The predeductible payment percentage for a covered OPD service (or group of such services) furnished in a year is equal to the ratio of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the medicare OPD fee schedule amount established under subparagraph (D) for the year, minus the unadjusted copayment amount determined under subparagraph (B) for the service or group, to</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the medicare OPD fee schedule amount determined under subparagraph (D) for the year for such service or group.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Medicare payment amount</inline>.—</heading><chapeau>The amount of payment made from the Trust Fund under this part for a covered OPD service (and such services classified within a group) furnished in a year is determined as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Fee schedule adjustments</inline>.—</heading><content>The medicare OPD fee schedule amount (computed under paragraph (3)(D)) for the service or group and year is adjusted for relative differences in the cost of labor and other factors determined by the Secretary, as computed under paragraphs (2)(D) and (2)(E).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Subtract applicable deductible</inline>.—</heading><content>Reduce the adjusted amount determined under subparagraph (A) by <page identifier="/us/stat/111/448">111 STAT. 448</page>the amount of the deductible under section 1833(b), to the extent applicable.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Apply payment proportion to remainder</inline>.—</heading><content>The amount of payment is the amount so determined under subparagraph (B) multiplied by the pre-deductible payment percentage (as determined under paragraph (3)(E)) for the service or group and year involved.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Copayment amount</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in subparagraph (B), the copayment amount under this subsection is the amount by which the amount described in paragraph (4)(B) exceeds the amount of payment determined under paragraph (4)(C).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Procedures.</p></sidenote> <heading><inline class="smallCaps">Election to offer reduced copayment amount</inline>.—</heading><content>The Secretary shall establish a procedure under which a hospital, before the beginning of a year (beginning with 1999), may elect to reduce the copayment amount otherwise established under subparagraph (A) for some or all covered OPD services to an amount that is not less than 20 percent of the medicare OPD fee schedule amount (computed under paragraph (3)(D)) for the service involved. Under such procedures, such reduced copayment amount may not be further reduced or increased during the year involved and the hospital may disseminate information on the reduction of copayment amount effected under this subparagraph.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">No impact on deductibles</inline>.—</heading><content>Nothing in this paragraph shall be construed as affecting a hospital’s authority to waive the charging of a deductible under section 1833(b).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Periodic review and adjustments components of prospective payment system</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Periodic review</inline>.—</heading><content>The Secretary may periodically review and revise the groups, the relative payment weights, and the wage and other adjustments described in paragraph (2) to take into account changes in medical practice, changes in technology, the addition of new services, new cost data, and other relevant information and factors.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Budget neutrality adjustment</inline>.—</heading><content>If the Secretary makes adjustments under subparagraph (A), then the adjustments for a year may not cause the estimated amount of expenditures under this part for the year to increase or decrease from the estimated amount of expenditures under this part that would have been made if the adjustments had not been made.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Update factor</inline>.—</heading><content>If the Secretary determines under methodologies described in paragraph (2)(F) that the volume of services paid for under this subsection increased beyond amounts established through those methodologies, the Secretary may appropriately adjust the update to the conversion factor otherwise applicable in a subsequent year.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Special rule for ambulance services</inline>.—</heading><content>The Secretary shall pay for hospital outpatient services that are ambulance services on the basis described in the matter in subsection (a)(1) preceding subparagraph (A), or, if applicable, the fee schedule established under section 1834(1).<page identifier="/us/stat/111/449">111 STAT. 449</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <heading><inline class="smallCaps">Special rules for certain hospitals</inline>.—</heading><chapeau>In the case of hospitals described in section 1886(d)(1)(B)(v)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the system under this subsection shall not apply to covered OPD services furnished before January 1, 2000; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the Secretary may establish a separate conversion factor for such services in a manner that specifically takes into account the unique costs incurred by such hospitals by virtue of their patient population and service intensity.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="9">“(9)</num> <heading><inline class="smallCaps">Limitation on review</inline>.—</heading><chapeau>There shall be no administrative or judicial review under section 1869, 1878, or otherwise of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the development of the classification system under paragraph (2), including the establishment of groups and relative payment weights for covered OPD services, of wage adjustment factors, other adjustments, and methods described in paragraph (2)(F);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the calculation of base amounts under paragraph (3);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>periodic adjustments made under paragraph (6); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>the establishment of a separate conversion factor under paragraph (8)(B).”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Coinsurance</inline>.—</heading><content>Section 1866(a)(2)(A)(ii) (42 U.S.C. 1395cc(a)(2)(A)(ii)) is amended by adding at the end the following: “<quotedText>In the case of items and services for which payment is made under part B under the prospective payment system established under section 1833(t), clause (ii) of the first sentence shall be applied by substituting for 20 percent of the reasonable charge, the applicable copayment amount established under section 1833(t)(5).</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Treatment of Reduction in Copayment Amount</inline>.—</heading><chapeau>Section U28A(i)(6) (42 U.S.C. 1320a–7a(i)(6)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>or</quotedText>” at the end of subparagraph (B),</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking the period at the end of subparagraph (C) and inserting “<quotedText>; or</quotedText>”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>a reduction in the copayment amount for covered OPD services under section 1833(t)(5)(B).”.</content></subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Approved asc procedures performed in hospital outpatient departments</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num><clause class="inline"><num value="i">(i)</num> <chapeau>Section 1833(i)(3)(A) (42 U.S.C. 13951(i)(3)(A)) is amended—</chapeau> <subclause class="indent4 fontsize10"><num value="I">(I)</num> <content>by inserting “<quotedText>before January 1, 1999,</quotedText>” after “furnished”, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">(II)</num> <content>by striking “<quotedText>in a cost reporting period</quotedText>”.</content></subclause> </clause> <subclause class="indent0 fontsize10"><num value="ii">(ii)</num> <content>The amendment made by clause (i) shall apply<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395l">42 USC 1395<i>l</i> note</ref>.</p></sidenote> to services furnished on or after January 1, 1999.</content></subclause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Section 1833(a)(4) (42 U.S.C. 13951(a)(4)) is amended by inserting “<quotedText>or subsection (t)</quotedText>” before the semicolon.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Radiology and other diagnostic procedures</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Section 1833(n)(1)(A) (42 U.S.C. 13951(n)(1)(A)) is amended by inserting “<quotedText>and before January 1, 1999,</quotedText>” after “October 1, 1988,” and after “October 1, 1989,”.<page identifier="/us/stat/111/450">111 STAT. 450</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Section 1833(a)(2)(E) (42 U.S.C. 13951(a)(2)(E)) is amended by inserting “<quotedText>or, for services or procedures performed on or after January 1, 1999, subsection (t)</quotedText>” before the semicolon.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Other hospital outpatient services</inline>.—</heading><chapeau>Section 1833(a)(2)(B) (42 U.S.C. 13951(a)(2)(B)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in clause (i), by inserting “<quotedText>furnished before January 1, 1999,</quotedText>” after “(i)”,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in clause (ii), by inserting “<quotedText>before January 1, 1999,</quotedText>” after “furnished”,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by redesignating clause (iii) as clause (iv), and (D) by inserting after clause (ii), the following new clause: <quotedContent> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>if such services are furnished on or after January 1, 1999, the amount determined under subsection (t), or”.</content></clause> </quotedContent> </content></subparagraph> </paragraph> </subsection> </section> </chapter> <chapter> <num value="3">CHAPTER 3—</num><heading>AMBULANCE SERVICES</heading> <section> <num value="4531">SEC. 4531.</num> <heading>PAYMENTS FOR AMBULANCE SERVICES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Interim Reductions</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Payments determined on reasonable cost basis</inline>.—</heading><content>Section 1861(v)(1) (42 U.S.C. 1395x(v)(1)), as amended by section 4451, is amended by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="U">“(U)</num> <content>In determining the reasonable cost of ambulance services (as described in subsection (s)(7)) provided during fiscal year 1998, during fiscal year 1999, and during so much of fiscal year 2000 as precedes January 1, 2000, the Secretary shall not recognize the costs per trip in excess of costs recognized as reasonable for ambulance services provided on a per trip basis during the previous fiscal year (after application of this subparagraph), increased by the percentage increase in the consumer price index for all urban consumers (U.S. city average) as estimated by the Secretary for the 12-month period ending with the midpoint of the fiscal year involved reduced by 1.0 percentage point. For ambulance services provided after June 30, 1998, the Secretary may provide that claims for such services must include a code (or codes) under a uniform coding system specified by the Secretary that identifies the services furnished.”.</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Payments determined on reasonable charge basis</inline>.—</heading><content>Section 1842(b) (42 U.S.C. 1395u(b)) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="19">“(19)</num> <content>For purposes of section 1833(a)(1), the reasonable charge for ambulance services (as described in section 1861(s)(7)) provided during calendar year 1998 and calendar year 1999 may not exceed the reasonable charge for such services provided during the previous calendar year (after application of this paragraph), increased by the percentage increase in the consumer price index for all urban consumers (U.S. city average) as estimated by the Secretary for the 12-month period ending with the midpoint of the year involved reduced by 1.0 percentage point.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Establishment of Prospective Fee Schedule</inline>.—<page identifier="/us/stat/111/451">111 STAT. 451</page></heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Payment in accordance with fee schedule</inline>.—</heading><chapeau>Section 1833(a)(1) (42 U.S.C. 13951(a)(D), as amended by section 4315(b), is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>and (Q)</quotedText>” and inserting “<quotedText>(Q)</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking the semicolon at the end and inserting the following: “, and (R) with respect to ambulance service, the amounts paid shall be 80 percent of the lesser of the actual charge for the services or the amount determined by a fee schedule established by the Secretary under section 1834(1);”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Establishment of schedule</inline>.—</heading><content>Section 1834 (42 U.S.C. 1395m), as amended by section 4541, is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="l">“(l)</num> <heading><inline class="smallCaps">Establishment of Fee Schedule for Ambulance Services</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall establish a fee schedule for payment for ambulance services whether provided directly by a supplier or provider or under arrangement with a provider under this part through a negotiated rulemaking process described in title 5, United States Code, and in accordance with the requirements of this subsection.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Considerations</inline>.—</heading><chapeau>In establishing such fee schedule, the Secretary shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>establish mechanisms to control increases in expenditures for ambulance services under this part;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>establish definitions for ambulance services which link payments to the type of services provided;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>consider appropriate regional and operational differences;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>consider adjustments to payment rates to account for inflation and other relevant factors; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>phase in the application of the payment rates under the fee schedule in an efficient and fair manner.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Savings</inline>.—</heading><chapeau>In establishing such fee schedule, the Secretary shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>ensure that the aggregate amount of payments made for ambulance services under this part during 2000 does not exceed the aggregate amount of payments which would have been made for such services under this part during such year if the amendments made by section 4531(a) of the Balanced Budget Act of 1997 continued in effect, except that in making such determination the Secretary shall assume an update in such payments for 2002 equal to percentage increase in the consumer price index for all urban consumers (U.S. city average) for the 12-month period ending with June of the previous year reduced in the case of 2001 and 2002 by 1.0 percentage points; and<page identifier="/us/stat/111/452">111 STAT. 452</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>set the payment amounts provided under the fee schedule for services furnished in 2001 and each subsequent year at amounts equal to the payment amounts under the fee schedule for services furnished during the previous year, increased by the percentage increase in the consumer price index for all urban consumers (U.S. city average) for the 12-month period ending with June of the previous year reduced in the case of 2001 and 2002 by 1.0 percentage points.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Consultation</inline>.—</heading><content>In establishing the fee schedule for ambulance services under this subsection, the Secretary shall consult with various national organizations representing individuals and entities who furnish and regulate ambulance services and share with such organizations relevant data in establishing such schedule.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Limitation on review</inline>.—</heading><content>There shall be no administrative or judicial review under section 1869 or otherwise of the amounts established under the fee schedule for ambulance services under this subsection, including matters described in paragraph (2).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> <heading><inline class="smallCaps">Restraint on billing</inline>.—</heading><content>The provisions of subparagraphs (A) and (B) of section 1842(b)(18) shall apply to ambulance services for which payment is made under this subsection in the same manner as they apply to services provided by a practitioner described in section 1842(b)(18)(C).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Coding system</inline>.—</heading><content>The Secretary may require the claim for any services for which the amount of payment is determined under this subsection to include a code (or codes) under a uniform coding system specified by the Secretary that identifies the services furnished.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395l">42 USC 1395l note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendments made by this subsection shall apply to services furnished on or after January 1, 2000.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x note</ref>.</p></sidenote> <heading><inline class="smallCaps">Authorizing Payment for Paramedic Intercept Service Providers in Rural Communities</inline>.—</heading><chapeau>In promulgating regulations to carry out section 1861(s)(7) of the Social Security Act (42 U.S.C. 1395x(s)(7)) with respect to the coverage of ambulance service, the Secretary of Health and Human Services may include coverage of advanced life support services (in this subsection referred to as “ALS intercept services”) provided by a paramedic intercept service provider in a rural area if the following conditions are met:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>The ALS intercept services are provided under a contract with one or more volunteer ambulance services and are medically necessary based on the health condition of the individual being transported.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>The volunteer ambulance service involved—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>is certified as qualified to provide ambulance service for purposes of such section,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>provides only basic life support services at the time of the intercept, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>is prohibited by State law from billing for any services.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <chapeau>The entity supplying the ALS intercept services—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>is certified as qualified to provide such services under the medicare program under title XVIII of the Social Security Act, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>bills all recipients who receive ALS intercept services from the entity, regardless of whether or not such recipients are medicare beneficiaries.<page identifier="/us/stat/111/453">111 STAT. 453</page></content></subparagraph> </paragraph> </subsection> </section> <section> <num value="4532">SEC. 4532.</num> <heading>DEMONSTRATION OF COVERAGE OF AMBULANCE SERVICES UNDER MEDICARE THROUGH CONTRACTS WITH UNITS OF LOCAL GOVERNMENT.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395m">42 USC 1395m note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Demonstration Project Contracts With Local Governments</inline>.—</heading><chapeau>The Secretary of Health and Human Services shall establish up to 3 demonstration projects under which, at the request of a unit of local government, the Secretary enters into a contract with the unit of local government under which—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>the unit of local government furnishes (or arranges for the furnishing of) ambulance services for which payment may be made under part B of title XVIII of the Social Security Act for individuals residing in the unit of local government who are enrolled under such part, except that the unit of local government may not enter into the contract unless the contract covers at least 80 percent of the individuals residing in the unit of local government who are enrolled under such part but not in a Medicare+Choice plan;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>any individual or entity furnishing ambulance services under the contract meets the requirements otherwise applicable to individuals and entities furnishing such services under such part; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>for each month during which the contract is in effect, the Secretary makes a capitated payment to the unit of local government in accordance with subsection (b).</content></paragraph> <continuation class="indent0 fontsize10">The projects may extend over a period of not to exceed 3 years each.</continuation> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Amount of Payment</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The amount of the monthly payment made for months occurring during a calendar year to a unit of local government under a demonstration project contract under subsection (a) shall be equal to the product of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>the Secretary’s estimate of the number of individuals covered under the contract for the month; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>½ of the capitated payment rate for the year established under paragraph (2).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Capitated payment rate defined</inline>.—</heading><chapeau>In this subsection, the “capitated payment rate” applicable to a contract under this subsection for a calendar year is equal to 95 percent of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>for the first calendar year for which the contract is in effect, the average annual per capita payment made under part B of title XVIII of the Social Security Act with respect to ambulance services furnished to such individuals during the 3 most recent calendar years for which data on the amount of such payment is available; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>for a subsequent year, the amount provided under this paragraph for the previous year increased by the percentage increase in the consumer price index for all urban consumers (U.S. city average) for the 12-month period ending with June of the previous year.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Other Terms of Contract</inline>.—</heading><chapeau>The Secretary and the unit of local government may include in a contract under this section such other terms as the parties consider appropriate, including—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>covering individuals residing in additional units of local government (under arrangements entered into between such units and the unit of local government involved);<page identifier="/us/stat/111/454">111 STAT. 454</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>permitting the unit of local government to transport individuals to non-hospital providers if such providers are able to furnish quality services at a lower cost than hospital providers; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>implementing such other innovations as the unit of local government may propose to improve the quality of ambulance services and control the costs of such services.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Contract Payments in Lieu of Other Benefits</inline>.—</heading><content>Payments under a contract to a unit of local government under this section shall be instead of the amounts which (in the absence of the contract) would otherwise be payable under part B of title XVIII of the Social Security Act for the services covered under the contract which are furnished to individuals who reside in the unit of local government.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Report on Effects of Capitated Contracts</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Study</inline>.—</heading><content>The Secretary shall evaluate the demonstration projects conducted under this section. Such evaluation shall include an analysis of the quality and cost-effectiveness of ambulance services furnished under the projects.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than January 1, 2000, the Secretary shall submit a report to Congress on the study conducted under paragraph (1), and shall include in the report such recommendations as the Secretary considers appropriate, including recommendations regarding modifications to the methodology used to determine the amount of payments made under such contracts and extending or expanding such projects.</content></paragraph> </subsection> </section> </chapter> <chapter> <num value="4">CHAPTER 4—</num><heading>PROSPECTIVE PAYMENT FOR OUTPATIENT REHABILITATION SERVICES</heading> <section> <num value="4541">SEC. 4541.</num> <heading>PROSPECTIVE PAYMENT FOR OUTPATIENT REHABILITATION SERVICES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Payment Based on Fee Schedule</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Special payment rules</inline>.—</heading><chapeau>Section 1833(a) (42 U.S.C. 13951(a)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in paragraph (2) in the matter before subparagraph (A), by inserting “<quotedText>(C),</quotedText>” before “(D)”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in paragraph (3), by striking “<quotedText>subparagraphs (D) and (E) of section 1832(a)(2)</quotedText>” and inserting “<quotedText>section 1832(a)(2)(D)</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>in paragraph (6), by striking “<quotedText>and</quotedText>” at the end;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>in paragraph (7), by striking the period at the end and inserting a semicolon; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>by adding at the end the following new paragraphs: <quotedContent> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <chapeau>in the case of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>outpatient physical therapy services (which includes outpatient speech-language pathology services) and outpatient occupational therapy services furnished—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>by a rehabilitation agency, public health agency, clinic, comprehensive outpatient rehabilitation facility, or skilled nursing facility,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>by a home health agency to an individual who is not homebound, or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>by another entity under an arrangement with an entity described in clause (i) or (ii); and<page identifier="/us/stat/111/455">111 STAT. 455</page></content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>outpatient physical therapy services (which includes outpatient speech-language pathology services) and outpatient occupational therapy services furnished—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>by a hospital to an outpatient or to a hospital inpatient who is entitled to benefits under part A but has exhausted benefits for inpatient hospital services during a spell of illness or is not so entitled to benefits under part A, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>by another entity under an arrangement with a hospital described in clause (i), the amounts described in section 1834(k); and</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="9">“(9)</num> <content>in the case of services described in section 1832(a)(2)(E) that are not described in paragraph (8), the amounts described in section 1834(k).”.</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Payment rates</inline>.—</heading><content>Section 1834 (42 U.S.C. 1395m) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="k">“(k)</num> <heading><inline class="smallCaps">Payment for Outpatient Therapy Services and Comprehensive Outpatient Rehabilitation Services</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>With respect to services described in section 1833(a)(8) or 1833(a)(9) for which payment is determined under this subsection, the payment basis shall be—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>for services furnished during 1998, the amount determined under paragraph (2); or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>for services furnished during a subsequent year, 80 percent of the lesser of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the actual charge for the services, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the applicable fee schedule amount (as defined in paragraph (3)) for the services.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Payment in 1998 based upon adjusted reasonable costs</inline>.—</heading><chapeau>The amount under this paragraph for services is the lesser of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the charges imposed for the services, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the adjusted reasonable costs (as defined in paragraph (4)) for the services, less 20 percent of the amount of the charges imposed for such services.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Applicable fee schedule amount</inline>—</heading><content>In this subsection, the term ‘applicable fee schedule amount’ means, with respect to services furnished in a year, the amount determined under the fee schedule established under section 1848 for such services furnished during the year or, if there is no such fee schedule established for such services, the amount determined under the fee schedule established for such comparable services as the Secretary specifies.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Adjusted reasonable costs</inline>.—</heading><content>In paragraph (2), the term ‘adjusted reasonable costs’ means, with respect to any services, reasonable costs determined for such services, reduced by 10 percent. The 10-percent reduction shall not apply to services described in section 1833(a)(8)(B) (relating to services provided by hospitals).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Uniform coding</inline>.—</heading><content>For claims for services submitted on or after April 1, 1998, for which the amount of payment is determined under this subsection, the claim shall include a code (or codes) under a uniform coding system specified by the Secretary that identifies the services furnished.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Restraint on billing</inline>.—</heading><content>The provisions of subparagraphs<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> (A) and (B) of section 1842(b)(18) shall apply to therapy <page identifier="/us/stat/111/456">111 STAT. 456</page>services for which payment is made under this subsection in the same manner as they apply to services provided by a practitioner described in section 1842(b)(18)(C).”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Conforming change in billing</inline>.—</heading><content>Section 1866(a)(2)(A)(ii) (42 U.S.C. 1395cc(a)(2)(A)(ii)) is amended by adding at the end the following: “<quotedText>In the case of services described in section 1833(a)(8) or section 1833(a)(9) for which payment is made under part B under section 1834(k), clause ii) of the first sentence shall be applied by substituting for 20 percent of the reasonable charge for such services 20 percent of the lesser of the actual charge or the applicable fee schedule amount (as defined in such section) for such services.</quotedText>”</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Application of Standards to Outpatient Occupational and Physical Therapy Services Provided as an Incident to a Physician’s Professional Services</inline>.—</heading><chapeau>Section 1862(a), as amended by sections 4319(b), 4432(b), and 4507(a)(2)(B), (42 U.S.C. 1395y(a)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>or</quotedText>” at the end of paragraph (18);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking the period at the end of paragraph (19) and inserting “<quotedText>; or</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by inserting after paragraph (19) the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="20">“(20)</num> <content>in the case of outpatient occupational therapy services or outpatient physical therapy services furnished as an incident to a physician’s professional services (as described in section 1861(s)(2)(A)), that do not meet the standards and conditions (other than any licensing requirement specified by the Secretary) under the second sentence of section 1861(p) (or under such sentence through the operation of section 1861(g)) as such standards and conditions would apply to such therapy services if furnished by a therapist.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Applying Financial Limitation to All Rehabilitation Services</inline>.—</heading><chapeau>Section 1833(g) (42 U.S.C. 13951(g)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in the first sentence, by striking “<quotedText>services described in the second sentence of section 1861(p)</quotedText>” and inserting “<quotedText>physical therapy services of the type described in section 1861(p), but not described in section 1833(a)(8)(B), and physical therapy services of such type which are furnished by a physician or as incident to physicians’ services</quotedText>”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in the second sentence, by striking “<quotedText>outpatient occupational therapy services which are described in the second sentence of section 186 l(p) through the operation of section 1861(g)</quotedText>” and inserting “<quotedText>occupational therapy services (of the type that are described in section 1861(p) (but not described in section 1833(a)(8)(B)) through the operation of section 1861(g) and of such type which are furnished by a physician or as incident to physicians’ services)</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Indexing Limitation</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Section 1833(g) (42 U.S.C. 13951(g)), as amended by subsection (c), is further amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>$900</quotedText>” each place it appears and inserting “<quotedText>the amount specified in paragraph (2) for the year</quotedText>”, (B) by inserting “<quotedText>(1)</quotedText>” after “(g)”,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by designating the last sentence as a paragraph (3), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>by inserting before paragraph (3), as so designated, the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <chapeau>The amount specified in this paragraph—<page identifier="/us/stat/111/457">111 STAT. 457</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>for 1999, 2000, and 2001, is $1,500, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>for a subsequent year is the amount specified in this paragraph for the preceding year increased by the percentage increase in the MEI (as defined in section 1842(i)(3)) for such subsequent year;</content></subparagraph> <continuation class="indent0 fontsize10">except that if an increase under subparagraph (B) for a year is not a multiple of $10, it shall be rounded to the nearest multiple of $10.”.</continuation> </paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Report</inline>.—</heading><content>By not later than January 1, 2001, the Secretary<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395l">42 USC 1395<i>l</i> note</ref>.</p></sidenote> of Health and Human Services shall submit to Congress a report that includes recommendations on the establishment of a revised coverage policy of outpatient physical therapy services and outpatient occupational therapy services under the Social Security Act based on classification of individuals by diagnostic category and prior use of services, in both inpatient and outpatient settings, in place of the uniform dollar limitations specified in section 1833(g) of such Act, as amended by paragraph (1). The recommendations shall include how such a system of durational limits by diagnostic category might be implemented in a budget-neutral manner.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395l">42 USC 1395<i>l</i> note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>The amendments made by subsections (a)(1), (a)(2), and (b) apply to services furnished on or after January 1, 1998, including portions of cost reporting periods occurring on or after such date, except that section 1834(k) of the Social Security Act (as added by subsection (a)(2)) shall not apply to services described in section 1833(a)(8)(B) of such Act (as added by subsection (a)(1)) that are furnished during 1998.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>The amendments made by subsections (a)(3) and (c) apply to services furnished on or after January 1, 1999.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>The amendments made by subsection (d)(1) apply to expenses incurred on or after January 1, 1999.</content></paragraph> </subsection> </section> </chapter> <chapter> <num value="5">CHAPTER 5—</num><heading>OTHER PAYMENT PROVISIONS</heading> <section> <num value="4551">SEC. 4551.</num> <heading>PAYMENTS FOR DURABLE MEDICAL EQUIPMENT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Reduction in Payment Amounts for Items of Durable Medical Equipment</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Freeze in update for covered items</inline>.—</heading><chapeau>Section 1834(a)(14) (42 U.S.C. 1395m(a)(14)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in subparagraph (A), by striking “<quotedText>and</quotedText>” at the end;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>in subparagraph (B)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by striking “<quotedText>a subsequent year</quotedText>” and inserting “<quotedText>1993, 1994, 1995, 1996, and 1997</quotedText>”, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking the period at the end and inserting a semicolon; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by adding at the end the following new subparagraphs: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>for each of the years 1998 through 2002, 0 percent age points; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>for a subsequent year, the percentage increase in the consumer price index for all urban consumers (U.S. urban average) for the 12-month period ending with June of the previous year.”.</content></subparagraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Update for orthotics and prosthetics</inline>.—</heading><chapeau>Section 1834(h)(4)(A) (42 U.S.C. 1395m(h)(4)(A)) is amended—<page identifier="/us/stat/111/458">111 STAT. 458</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in clause (iii), by striking “<quotedText>, and</quotedText>” at the end and inserting a semicolon;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in clause (iv), by striking “<quotedText>a subsequent year</quotedText>” and inserting “<quotedText>1996 and 1997</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by adding at the end the following new clauses: <quotedContent> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>for each of the years 1998 through 2002, 1 percent, and</content></clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <content>for a subsequent year, the percentage increase in the consumer price index for all urban consumers (United States city average) for the 12-month period ending with June of the previous year;”.</content></clause> </quotedContent> </content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395m">42 USC 1395m note</ref>.</p></sidenote> <heading><inline class="smallCaps">Payment Freeze for Parenteral and Enteral Nutrients, Supplies, and Equipment</inline>.—</heading><content>In determining the amount of payment under part B of title XVIII of the Social Security Act with respect to parenteral and enteral nutrients, supplies, and equipment during each of the years 1998 through 2002, the charges determined to be reasonable with respect to such nutrients, supplies, and equipment may not exceed the charges determined to be reasonable with respect to such nutrients, supplies, and equipment during 1995.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Upgraded Durable Medical Equipment</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 1834(a) (42 U.S.C. 1395m(a)), as amended by section 4312(a), is amended by inserting after paragraph (16) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="17">“(17)</num> <heading><inline class="smallCaps">Certain upgraded items</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Individual’s right to choose upgraded item</inline>.—</heading><content>Notwithstanding any other provision of this title, the Secretary may issue regulations under which an individual may purchase or rent from a supplier an item of upgraded durable medical equipment for which payment would be made under this subsection if the item were a standard item.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Payments to supplier</inline>.—</heading><chapeau>In the case of the purchase or rental of an upgraded item under subparagraph (A)—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the supplier shall receive payment under this subsection with respect to such item as if such item were a standard item; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the individual purchasing or renting the item shall pay the supplier an amount equal to the difference between the supplier’s charge and the amount under clause (i).</content></clause> <continuation class="indent0 fontsize10">In no event may the supplier’s charge for an upgraded item exceed the applicable fee schedule amount (if any) for such item.</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Consumer protection safeguards</inline>.—</heading><chapeau>Any regulations under subparagraph (A) shall provide for consumer protection standards with respect to the furnishing of upgraded equipment under subparagraph (A). Such regulations shall provide for—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>determination of fair market prices with respect to an upgraded item;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>full disclosure of the availability and price of standard items and proof of receipt of such disclosure information by the beneficiary before the furnishing of the upgraded item;<page identifier="/us/stat/111/459">111 STAT. 459</page></content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>conditions of participation for suppliers in the billing arrangement;</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>sanctions of suppliers who are determined to engage in coercive or abusive practices, including exclusion; and</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>such other safeguards as the Secretary determines are necessary.”.</content></clause> </subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendment made by paragraph<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395">42 USC 1395 note</ref>.</p></sidenote> (1) shall apply to purchases or rentals after the effective date of any regulations issued pursuant to such amendment.</content></paragraph> </subsection> </section> <section> <num value="4552">SEC. 4552.</num> <heading>OXYGEN AND OXYGEN EQUIPMENT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 1834(a)(9)(B) (42 U.S.C. 1395m(a)(9)(B)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in clause (iii), by striking “<quotedText>and</quotedText>” at the end;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>in clause (iv)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>each subsequent year</quotedText>” and inserting “<quotedText>1995, 1996, and 1997</quotedText>”, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking the period at the end and inserting a semicolon; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by adding at the end the following new clauses: <quotedContent> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>for 1998, 75 percent of the amount determined under this subparagraph for 1997; and</content></clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <content>for 1999 and each subsequent year, 70 percent of the amount determined under this subparagraph for 1997.”.</content></clause> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Establishment of Classes for Payment</inline>.—</heading><content>Section 1848(a)(9) (42 U.S.C. 1395m(a)(9)) is amended by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Authority to create classes</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subject to clause (ii), the Secretary may establish separate classes for any item of oxygen and oxygen equipment and separate national limited monthly payment rates for each of such classes.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Budget neutrality</inline>.—</heading><content>The Secretary may take actions under clause (i) only to the extent such actions do not result in expenditures for any year to be more or less than the expenditures which would have been made if such actions had not been taken.”.</content></clause> </subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Standards</inline>.—</heading><content>The Secretary shall as soon as practicable<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395m">42 USC 1395m note</ref>.</p></sidenote> establish service standards for persons seeking payment under part B of title XVIII of the Social Security Act for the providing of oxygen and oxygen equipment to beneficiaries within their homes.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Access to Home Oxygen Equipment</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395m">42 USC 1395m note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Study</inline>.—</heading><content>The Comptroller General of the United States shall study issues relating to access to home oxygen equipment<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> and shall, within 18 months after the date of the enactment of this Act, report to the Committees on Commerce and Ways and Means of the House of Representatives and the Committee on Finance of the Senate the results of the study, including recommendations (if any) for legislation.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Peer review evaluation</inline>.—</heading><content>The Secretary of Health and Human Services shall arrange for peer review organizations established under section 1154 of the Social Security Act to evaluate access to, and quality of, home oxygen equipment.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395m">42 USC 1395m note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—<page identifier="/us/stat/111/460">111 STAT. 460</page></heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Oxygen</inline>.—</heading><content>The amendments made by subsection (a) shall apply to items furnished on and after January 1, 1998.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Other provisions</inline>.—</heading><content>The amendments made by this section other than subsection (a) shall take effect on the date of the enactment of this Act.</content></paragraph> </subsection> </section> <section> <num value="4553">SEC. 4553.</num> <heading>REDUCTION IN UPDATES TO PAYMENT AMOUNTS FOR CLINICAL DIAGNOSTIC LABORATORY TESTS; STUDY ON LABORATORY TESTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Change in Update</inline>.—</heading><content>Section 1833(h)(2)(A)(ii)(IV) (42 U.S.C. 13951(h)(2)(A)(ii)(IV)) is amended by inserting “<quotedText>and 1998 through 2002</quotedText>” after “1995”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Lowering Cap on Payment Amounts</inline>.—</heading><chapeau>Section 1833(h)(4)(B) (42 U.S.C. 13951(h)(4)(B)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in clause (vi), by striking “<quotedText>and</quotedText>” at the end;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>in clause (vii)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by inserting “<quotedText>and before January 1, 1998,</quotedText>” after “1995,”, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking the period at the end and inserting “<quotedText>, and</quotedText>”; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by adding at the end the following new clause: <quotedContent> <clause class="indent3 fontsize10"><num value="viii">“(viii)</num> <content>after December 31, 1997, is equal to 74 percent of such median”.</content></clause> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395l">42 USC 1395<i>l</i> note</ref>.</p></sidenote> <heading><inline class="smallCaps">Study and Report on Clinical Laboratory Tests</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall request the Institute of Medicine of the National Academy of Sciences to conduct a study of payments under part B of title XVIII of the Social Security Act for clinical laboratory tests. The study shall include a review of the adequacy of the current methodology and recommendations regarding alternative payment systems. The study shall also analyze and discuss the relationship between such payment systems and access to high quality laboratory tests for medicare beneficiaries, including availability and access to new testing methodologies.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Report to congress</inline>.—</heading><content>The Secretary shall, not later than 2 years after the date of enactment of this section, report to the Committees on Ways and Means and Commerce of the House of Representatives and the Committee on Finance of the Senate the results of the study described in paragraph (1), including any recommendations for legislation.</content></paragraph> </subsection> </section> <section> <num value="4554">SEC. 4554.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395u">42 USC 1395u note</ref>.</p></sidenote> <heading>IMPROVEMENTS IN ADMINISTRATION OF LABORATORY TESTS BENEFIT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Selection of Regional Carriers</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The Secretary of Health and Human Services (in this section referred to as the “Secretary”) shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>divide the United States into no more than 5 regions, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>designate a single carrier for each such region, for the purpose of payment of claims under part B of title XVIII of the Social Security Act with respect to clinical diagnostic laboratory tests furnished on or after such date (not later than July 1, 1999) as the Secretary specifies.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Designation</inline>.—</heading><chapeau>In designating such carriers, the Secretary shall consider, among other criteria—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>a carrier’s timeliness, quality, and experience in claims processing, and<page identifier="/us/stat/111/461">111 STAT. 461</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>a carrier’s capacity to conduct electronic data interchange with laboratories and data matches with other carriers.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Single data resource</inline>.—</heading><content>The Secretary shall select one of the designated carriers to serve as a central statistical resource for all claims information relating to such clinical diagnostic laboratory tests handled by all the designated carriers under such part.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Allocation of claims</inline>.—</heading><content>The allocation of claims for clinical diagnostic laboratory tests to particular designated carriers shall be based on whether a carrier serves the geographic area where the laboratory specimen was collected or other method specified by the Secretary.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <heading><inline class="smallCaps">Secretarial exclusion</inline>.—</heading><content>Paragraph (1) shall not apply with respect to clinical diagnostic laboratory tests furnished by physician office laboratories if the Secretary determines that such offices would be unduly burdened by the application of billing responsibilities with respect to more than one carrier.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Adoption of National Policies for Clinical Laboratory Tests Benefit</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Not later than January 1, 1999, the Secretary shall first adopt, consistent with paragraph (2), national coverage and administrative policies for clinical diagnostic laboratory tests under part B of title XVIII of the Social Security Act, using a negotiated rulemaking process under subchapter III of chapter 5 of title 5, United States Code.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Considerations in design of national policies</inline>.—</heading><chapeau>The policies under paragraph (1) shall be designed to promote program integrity and national uniformity and simplify administrative requirements with respect to clinical diagnostic laboratory tests payable under such part in connection with the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Beneficiary information required to be submitted with each claim or order for laboratory tests.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>The medical conditions for which a laboratory test is reasonable and necessary (within the meaning of section 1862(a)(1)(A) of the Social Security Act).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>The appropriate use of procedure codes in billing for a laboratory test, including the unbundling of laboratory services.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>The medical documentation that is required by a medicare contractor at the time a claim is submitted for a laboratory test in accordance with section 1833(e) of the Social Security Act.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>Recordkeeping requirements in addition to any information required to be submitted with a claim, including physicians’ obligations regarding such requirements.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F)</num> <content>Procedures for filing claims and for providing remittances by electronic media.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">(G)</num> <content>Limitation on frequency of coverage for the same tests performed on the same individual.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Changes in laboratory policies pending adoption of national policy</inline>.—</heading><content>During the period that begins on the date of the enactment of this Act and ends on the date the Secretary first implements national policies pursuant to regulations promulgated under this subsection, a carrier under such <page identifier="/us/stat/111/462">111 STAT. 462</page>part may implement changes relating to requirements for the submission of a claim for clinical diagnostic laboratory tests.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Use of interim policies</inline>.—</heading><content>After the date the Secretary first implements such national policies, the Secretary shall permit any carrier to develop and implement interim policies of the type described in paragraph (1), in accordance with guidelines established by the Secretary, in cases in which a uniform national policy has not been established under this subsection and there is a demonstrated need for a policy to respond to aberrant utilization or provision of unnecessary tests. Except as the Secretary specifically permits, no policy shall be implemented under this paragraph for a period of longer than 2 years.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <heading><inline class="smallCaps">Interim national policies</inline>.—</heading><content>After the date the Secretary first designates regional carriers under subsection (a), the Secretary shall establish a process under which designated carriers can collectively develop and implement interim national policies of the type described in paragraph (1). No such policy shall be implemented under this paragraph for a period of longer than 2 years.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <heading><inline class="smallCaps">Biennial review process</inline>.—</heading><content>Not less often than once every 2 years, the Secretary shall solicit and review comments regarding changes in the national policies established under this subsection. As part of such biennial review process, the Secretary shall specifically review and consider whether to incorporate or supersede interim policies developed under paragraph (4) or (5). Based upon such review, the Secretary may provide for appropriate changes in the national policies previously adopted under this subsection.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <heading><inline class="smallCaps">Requirement and notice</inline>.—</heading><content>The Secretary shall ensure that any policies adopted under paragraph (3), (4), or (5) shall apply to all laboratory claims payable under part B of title XVIII of the Social Security Act, and shall provide for advance notice to interested parties and a 45-day period in which such parties may submit comments on the proposed change.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Inclusion of Laboratory Representative on Carrier Advisory Committees</inline>.—</heading><content>The Secretary shall direct that any advisory committee established by a carrier to advise such carrier with respect to coverage and administrative policies under part B of title XVIII of the Social Security Act shall include an individual to represent the independent clinical laboratories and such other laboratories as the Secretary deems appropriate. The Secretary shall consider recommendations from national and local organizations that represent independent clinical laboratories in such selection.</content> </subsection> </section> <section> <num value="4555">SEC. 4555.</num> <heading>UPDATES FOR AMBULATORY SURGICAL SERVICES.</heading> <content>Section 1833(i)(2)(C) (42 U.S.C. 13951(i)(2)(C)) is amended by inserting at the end the following new sentence: “In each of the fiscal years 1998 through 2002, the increase under this subparagraph shall be reduced (but not below zero) by 2.0 percentage points.”.</content> </section> <section> <num value="4556">SEC. 4556.</num> <heading>REIMBURSEMENT FOR DRUGS AND BIOLOGICALS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 1842 (42 U.S.C. 1395u) is amended by inserting after subsection (n) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="o">“(o)</num><paragraph class="inline"><num value="1">(1)</num> <content>If a physician’s, supplier’s, or any other person’s bill or request for payment for services includes a charge for a drug <page identifier="/us/stat/111/463">111 STAT. 463</page>or biological for which payment may be made under this part and the drug or biological is not paid on a cost or prospective payment basis as otherwise provided in this part, the amount payable for the drug or biological is equal to 95 percent of the average wholesale price.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2)</num> <content>If payment for a drug or biological is made to a licensed pharmacy approved to dispense drugs or biologicals under this part, the Secretary may pay a dispensing fee (less the applicable deductible and coinsurance amounts) to the pharmacy.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><chapeau>Section 1833(a)(1) (42 U.S.C. 13951(a)(1)), as amended by sections 4315(b) and 4531(b)(1), is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>and (R)</quotedText>” and inserting “<quotedText>(R)</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking the semicolon at the end and inserting the following: “, and (S) with respect to drugs and biologicals not paid on a cost or prospective payment basis as otherwise provided in this part (other than items and services described in subparagraph (B)), the amounts paid shall be 80 percent of the lesser of the actual charge or the payment amount established in section 1842(o);”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Study and Report</inline>.—</heading><content>The Secretary of Health and Human<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395u">42 USC 1395u note</ref>.</p></sidenote> Services shall study the effect on the average wholesale price of drugs and biologicals of the amendments made by subsection (a) and shall report to the Committees on Ways and Means and Commerce of the House of Representatives and the Committee on Finance of the Senate the result of such study not later than July 1, 1999.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by subsections<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395l">42 USC 1395<i>l</i> note</ref>.</p></sidenote> (a) and (b) shall apply to drugs and biologicals furnished on or after January 1, 1998.</content> </subsection> </section> <section> <num value="4557">SEC. 4557.</num> <heading>COVERAGE OF ORAL ANTI-NAUSEA DRUGS UNDER CHEMOTHERAPEUTIC REGIMEN.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 1861(s)(2) (42 U.S.C. 1395x(s)(2)), as amended by sections 4104 and 4105, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>and</quotedText>” at the end of subparagraph (R); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting after subparagraph (S) the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="T">“(T)</num> <chapeau>an oral drug (which is approved by the Federal Food and Drug Administration) prescribed for use as an acute antiemetic used as part of an anticancer chemotherapeutic regimen if the drug is administered by a physician (or as prescribed by a physician)—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>for use immediately before, at, or within 48 hours after the time of the administration of the anticancer chemotherapeutic agent; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>as a full replacement for the anti-emetic therapy which would otherwise be administered intravenously.”.</content></clause> </subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by subsection<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x note</ref>.</p></sidenote> (a) shall apply to items and services furnished on or after January 1, 1998.</content> </subsection> </section> <section> <num value="4558">SEC. 4558.</num> <heading>RENAL DIALYSIS-RELATED SERVICES.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395rr">42 USC 1395rr note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Auditing of Cost Reports</inline>.—</heading><content>Beginning with cost reports for 1996, the Secretary shall audit cost reports of each renal dialysis provider at least once every 3 years.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Implementation of Quality Standards</inline>.—</heading><content>The Secretary of Health and Human Services shall develop, by not later than <page identifier="/us/stat/111/464">111 STAT. 464</page>January 1, 1999, and implement, by not later than January 1, 2000, a method to measure and report quality of renal dialysis services provided under the medicare program under title XVIII of the Social Security Act.</content> </subsection> </section> <section> <num value="4559">SEC. 4559.</num> <heading>TEMPORARY COVERAGE RESTORATION FOR PORTABLE ELECTROCARDIOGRAM TRANSPORTATION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Effective only for electrocardiogram tests furnished during 1998, the Secretary of Health and Human Services shall restore separate payment, under part B of title XVIII of the Social Security Act, for the transportation of electrocardiogram equipment (HCPCS code R0076) based upon payment methods in effect for such service as of December 31, 1996.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Determination</inline>.—</heading><content>By not later than July 1, 1998, the Secretary of Health and Human Services shall make a recommendation to the Committees on Commerce and Ways and Means of the House of Representatives and the Committee on Finance of the Senate as to whether coverage of portable electrocardiogram transportation should be provided under part B of title XVIII of the Social Security Act. In making such recommendation, the Secretary shall take into account the study of coverage of portable electrocardiogram transportation conducted by the Comptroller General of the United States and other relevant information, including information submitted by interested parties.</content> </subsection> </section> </chapter> <chapter> <num value="6">CHAPTER 6—</num><heading>PART B PREMIUM AND RELATED PROVISIONS</heading> <subchapter> <num value="A">Subchapter A—</num><heading>Determination of Part B Premium Amount</heading> <section> <num value="4571">SEC. 4571.</num> <heading>PART B PREMIUM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 1839(a)(3) (42 U.S.C. 1395r(a)(3)) is amended by striking the first 3 sentences and inserting the following:<sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote> “The Secretary, during September of each year, shall determine and promulgate a monthly premium rate for the succeeding calendar year that is equal to 50 percent of the monthly actuarial rate for enrollees age 65 and over, determined according to paragraph (1), for that succeeding calendar year.”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming and Technical Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Section 1839</inline>.—</heading><chapeau>Section 1839 (42 U.S.C. 1395r) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in subsection (a)(2), by striking “<quotedText>(b) and (e)</quotedText>” and inserting “<quotedText>(b), (c), and (f)</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>in the last sentence of subsection (a)(3)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by inserting “<quotedText>rate</quotedText>” after “premium”, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking “<quotedText>and the derivation of the dollar amounts specified in this paragraph</quotedText>”;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>in the first sentence of subsection (b), by striking “<quotedText>or (e)</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>by striking subsection (e); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>by redesignating subsection (g) as subsection (e) and inserting that subsection after subsection (d).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Section 1844</inline>.—</heading><content>Subparagraphs (A)(i) and (B)(i) of section 1844(a)(1) (42 U.S.C. 1395w(a)(1)) are each amended by striking “<quotedText>or 1839(e), as the case may be</quotedText>”.<page identifier="/us/stat/111/465">111 STAT. 465</page></content></paragraph> </subsection> </section> </subchapter> <subchapter> <num value="B">Subchapter B—</num><heading>Other Provisions Related to Part B Premium</heading> <section> <num value="4581">SEC. 4581.</num> <heading>PROTECTIONS UNDER THE MEDICARE PROGRAM FOR DISABLED WORKERS WHO LOSE BENEFITS UNDER A GROUP HEALTH PLAN.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">No Premium Penalty for Late Enrollment</inline>.—</heading><content>The first sentence of section 1839(b) (42 U.S.C. 1395r(b)) is amended by inserting “<quotedText>and not pursuant to a special enrollment period under section 1837(i)(4)</quotedText>” after “section 1837)”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Special Medicare Enrollment Period</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 1837(i) (42 U.S.C. 1395p(i)) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num><subparagraph class="inline"><num value="A">(A)</num> <chapeau>In the case of an individual who is entitled to benefits under part A pursuant to section 226(b) and—</chapeau> <clause class="indent0 fontsize10"><num value="i">“(i)</num> <chapeau>who at the time the individual first satisfies paragraph (1) of section 1836—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>is enrolled in a group health plan described in section 1862(b)(1)(A)(v) by reason of the individual’s current or former employment or by reason of the current or former employment status of a member of the individual’s family, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>has elected not to enroll (or to be deemed enrolled) under this section during the individual’s initial enrollment period; and</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>whose continuous enrollment under such group health plan is involuntarily terminated at a time when the enrollment under the plan is not by reason of the individual’s current employment or by reason of the current employment of a member of the individual’s family,</content></clause> <continuation class="indent0 fontsize10">there shall be a special enrollment period described in subparagraph (B).</continuation> </subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B)</num> <content>The special enrollment period referred to in subparagraph (A) is the 6-month period beginning on the first day of the month which includes the date of the enrollment termination described in subparagraph (A)(ii).”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Coverage period</inline>.—</heading><chapeau>Section 1838(e) (42 U.S.C. 1395q(e)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by inserting “<quotedText>or 1837(i)(4)(B)</quotedText>” after “1837(i)(3)” the first place it appears, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by inserting “<quotedText>or specified in section 1837(i)(4)(A)(i)</quotedText>” after “1837(i)(3)” the second place it appears.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395p">42 USC 1395p note</ref>.</p></sidenote> 42 USC I395p shall apply to involuntary terminations of coverage under a group note health plan occurring on or after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="4582">SEC. 4582.</num> <heading>GOVERNMENTAL ENTITIES ELIGIBLE TO ELECT TO PAY PART B PREMIUMS FOR ELIGIBLE INDIVIDUALS.</heading> <chapeau>Section 1839(e)(1) (as amended by section 4571(b)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by inserting “<quotedText>(or any appropriate State or local governmental entity specified by the Secretary)</quotedText>” after “State” the first place it appears, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting “<quotedText>(or such entity)</quotedText>” after “State” the second and third place it appears.<page identifier="/us/stat/111/466">111 STAT. 466</page></content></paragraph> </section> </subchapter> </chapter> </subtitle> <subtitle> <num value="G">Subtitle G—</num> <heading>Provisions Relating to Parts A and B</heading> <chapter> <num value="1">CHAPTER 1—</num><heading>HOME HEALTH SERVICES AND BENEFITS</heading> <subchapter> <num value="A">Subchapter A—</num><heading>Payments For Home Health Services</heading> <section> <num value="4601">SEC. 4601.</num> <heading>RECAPTURING SAVINGS RESULTING FROM TEMPORARY FREEZE ON PAYMENT INCREASES FOR HOME HEALTH SERVICES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Basing Updates to Per Visit Cost Limits on Limits for Fiscal Year 1993</inline>.—</heading><content>Section 1861(v)(1)(L) (42 U.S.C. 1395x(v)(1)(L)) is amended by adding at the end the following: <quotedContent> <num value="iv">“(iv)</num> <content>In establishing limits under this subparagraph for cost reporting periods beginning after September 30, 1997, the Secretary shall not take into account any changes in the home health market basket, as determined by the Secretary, with respect to cost reporting periods which began on or after July 1, 1994, and before July 1, 1996.”.</content> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x note</ref>.</p></sidenote> <heading><inline class="smallCaps">No Exceptions Permitted Based on Amendment</inline>.—</heading><content>The Secretary of Health and Human Services shall not consider the amendment made by subsection (a) in making any exemptions and exceptions pursuant to section 1861(v)(1)(L)(ii) of the Social Security Act (42 U.S.C. 1395x(v)(1)(L)(ii)).</content> </subsection> </section> <section> <num value="4602">SEC. 4602.</num> <heading>INTERIM PAYMENTS FOR HOME HEALTH SERVICES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Reductions in Cost Limits</inline>.—</heading><chapeau>Section 1861(v)(1)(L)(i) (42 U.S.C. 1395x(v)(1)(L)(i)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by moving the indentation of subclauses (I) through (III) 2-ems to the left;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subclause (I), by inserting “<quotedText>of the mean of the labor-related and nonlabor per visit costs for freestanding home health agencies</quotedText>” before the comma at the end;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>in subclause (II), by striking “<quotedText>, or</quotedText>” and inserting “<quotedText>of such mean,</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <chapeau>in subclause (III)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by inserting “<quotedText>and before October 1, 1997,</quotedText>” after “July 1, 1987,”, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking the comma at the end and inserting “<quotedText>of such mean, or</quotedText>”; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>by striking the matter following subclause (III) and inserting the following: <quotedContent> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>October 1, 1997, 105 percent of the median of the labor-related and nonlabor per visit costs for freestanding home health agencies.”.</content></subclause> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Delay in Updates</inline>.—</heading><content>Section 1861(v)(1)(L)(iii) (42 U.S.C. 1395x(v)(1)(L)(iii)) is amended by inserting “<quotedText>, or on or after July 1, 1997, and before October 1, 1997</quotedText>” after “July 1, 1996”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Additions to Cost Limits</inline>.—</heading><content>Section 1861(v)(1)(L) (42 U.S.C. 1395x(v)(1)(D) (as amended by section 4601(a)) is amended by adding at the end the following new clauses: <quotedContent> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <chapeau>For services furnished by home health agencies for cost reporting periods beginning on or after October 1, 1997, the Secretary shall provide for an interim system of limits. Payment shall not exceed the costs determined under the preceding provisions of this subparagraph or, if lower, the product of—<page identifier="/us/stat/111/467">111 STAT. 467</page></chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>an agency-specific per beneficiary annual limitation calculated based 75 percent on 98 percent of the reasonable costs (including nonroutine medical supplies) for the agency’s 12-month cost reporting period ending during fiscal year 1994, and based 25 percent on 98 percent of the standardized regional average of such costs for the agency’s census division, as applied to such agency, for cost reporting periods ending during fiscal year 1994, such costs updated by the home health market basket index; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the agency’s unduplicated census count of patients (entitled to benefits under this title) for the cost reporting period subject to the limitation.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <chapeau>For services furnished by home health agencies for cost<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> reporting periods beginning on or after October 1, 1997, the following rules apply:</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>For new providers and those providers without a 12-month cost reporting period ending in fiscal year 1994, the per beneficiary limitation shall be equal to the median of these limits (or the Secretary’s best estimates thereof) applied to other home health agencies as determined by the Secretary. A home health agency that has altered its corporate structure or name shall not be considered a new provider for this purpose.</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>For beneficiaries who use services furnished by more than one home health agency, the per beneficiary limitations shall be prorated among the agencies.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="vii">“(vii)</num><subclause class="inline"><num value="I">(I)</num> <content>Not later than January 1, 1998, the Secretary shall establish per visit limits applicable for fiscal year 1998, and not later than April 1, 1998, the Secretary shall establish per beneficiary limits under clause (v)(I) for fiscal year 1998.</content></subclause> <subclause class="indent0 fontsize10"><num value="II">“(II)</num> <content>Not later than August 1 of each year (beginning in 1998) the Secretary shall establish the limits applicable under this subparagraph for services furnished during the fiscal year beginning October 1 of the year.”.</content></subclause> </clause> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Development of Case Mix System</inline>.—</heading><content>The Secretary of<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395fff">42 USC 1395fff note</ref>.</p></sidenote> Health and Human Services shall expand research on a prospective payment system for home health agencies under the medicare program that ties prospective payments to a unit of service, including an intensive effort to develop a reliable case mix adjuster that explains a significant amount of the variances in costs.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Submission of Data for Case Mix System</inline>.—</heading><content>Effective<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395fff">42 USC 1395fff note</ref>.</p></sidenote> for cost reporting periods beginning on or after October 1, 1997, the Secretary of Health and Human Services may require all home health agencies to submit additional information that the Secretary considers necessary for the development of a reliable case mix system.</content> </subsection> </section> <section> <num value="4603">SEC. 4603.</num> <heading>PROSPECTIVE PAYMENT FOR HOME HEALTH SERVICES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Title XVIII (42 U.S.C. 1395 et seq.) amended by section 4801) is amended by adding at the end following: <quotedContent> <level> <heading class="centered">“<inline class="smallCaps">prospective payment for home health services</inline></heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395fff">42 USC 1395fff</ref>.</p></sidenote> <section> <num value="1895">“<inline class="smallCaps">Sec</inline>. 1895.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Notwithstanding section 1861(v), the Secretary shall provide, for cost reporting periods beginning on or after October 1, 1999, for payments for home health services in accordance with a prospective payment system established by the Secretary under this section.<page identifier="/us/stat/111/468">111 STAT. 468</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">System of Prospective Payment for Home Health Services</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall establish under this subsection a prospective payment system for payment for all costs of home health services. Under the system under this subsection all services covered and paid on a reasonable cost basis under the medicare home health benefit as of the date of the enactment of the this section, including medical supplies, shall be paid for on the basis of a prospective payment amount determined under this subsection and applicable to the services involved. In implementing the system, the Secretary may provide for a transition (of not longer than 4 years) during which a portion of such payment is based on agency-specific costs, but only if such transition does not result in aggregate payments under this title that exceed the aggregate payments that would be made if such a transition did not occur.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Unit of payment</inline>.—</heading><content>In defining a prospective payment amount under the system under this subsection, the Secretary shall consider an appropriate unit of service and the number, type, and duration of visits provided within that unit, potential changes in the mix of services provided within that unit and their cost, and a general system design that provides for continued access to quality services.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Payment basis</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Initial basis</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Under such system the Secretary shall provide for computation of a standard prospective payment amount (or amounts). Such amount (or amounts) shall initially be based on the most current audited cost report data available to the Secretary and shall be computed in a manner so that the total amounts payable under the system for fiscal year 2000 shall be equal to the total amount that would have been made if the system had not been in effect but if the reduction in limits described in clause (ii) had been in effect. Such amount shall be standardized in a manner that eliminates the effect of variations in relative case mix and wage levels among different home health agencies in a budget neutral manner consistent with the case mix and wage level adjustments provided under paragraph (4)(A). Under the system, the Secretary may recognize regional differences or differences based upon whether or not the services or agency are in an urbanized area.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Reduction</inline>.—</heading><content>The reduction described in this clause is a reduction by 15 percent in the cost limits and per beneficiary limits described in section 1861(v)(1)(L), as those limits are in effect on September 30, 1999.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Annual update</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The standard prospective payment amount (or amounts) shall be adjusted for each fiscal year (beginning with fiscal year 2001) in a prospective manner specified by the Secretary by the home health market basket percentage increase applicable to the fiscal year involved.<page identifier="/us/stat/111/469">111 STAT. 469</page></content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Home health market basket percentage increase</inline>.—</heading><content>For purposes of this subsection, the term ‘home health market basket percentage increase’ means, with respect to a fiscal year, a percentage (estimated by the Secretary before the beginning of the fiscal year) determined and applied with respect to the mix of goods and services included in home health services in the same manner as the market basket percentage increase under section 1886(b)(3)(B)(iii) is determined and applied to the mix of goods and services comprising inpatient hospital services for the fiscal year.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Adjustment for outliers</inline>.—</heading><content>The Secretary shall reduce the standard prospective payment amount (or amounts) under this paragraph applicable to home health services furnished during a period by such proportion as will result in an aggregate reduction in payments for the period equal to the aggregate increase in payments resulting from the application of paragraph (5) (relating to outliers).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Payment computation</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The payment amount for a unit of home health services shall be the applicable standard prospective payment amount adjusted as follows:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Case mix adjustment</inline>.—</heading><content>The amount shall be adjusted by an appropriate case mix adjustment factor (established under subparagraph (B)).</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Area wage adjustment</inline>.—</heading><content>The portion of such amount that the Secretary estimates to be attributable to wages and wage-related costs shall be adjusted for geographic differences in such costs by an area wage adjustment factor (established under subparagraph (C)) for the area in which the services are furnished or such other area as the Secretary may specify.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Establishment of case mix adjustment factors</inline>.—</heading><content>The Secretary shall establish appropriate case mix adjustment factors for home health services in a manner that explains a significant amount of the variation in cost among different units of services.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Establishment of area wage adjustment factors</inline>.—</heading><content>The Secretary shall establish area wage adjustment factors that reflect the relative level of wages and wage-related costs applicable to the furnishing of home health services in a geographic area compared to the national average applicable level. Such factors may be the factors used by the Secretary for purposes of section 1886(d)(3)(E).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Outliers</inline>.—</heading><content>The Secretary may provide for an addition or adjustment to the payment amount otherwise made in the case of outliers because of unusual variations in the type or amount of medically necessary care. The total amount of the additional payments or payment adjustments made under this paragraph with respect to a fiscal year may not exceed 5 percent of the total payments projected or estimated to be made based on the prospective payment system under this subsection in that year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Proration of prospective payment amounts</inline>.—</heading><content>If a beneficiary elects to transfer to, or receive services from, <page identifier="/us/stat/111/470">111 STAT. 470</page>another home health agency within the period covered by the prospective payment amount, the payment shall be prorated between the home health agencies involved.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Requirements for Payment Information</inline>.—</heading><chapeau>With respect to home health services furnished on or after October 1, 1998, no claim for such a service may be paid under this title unless—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the claim has the unique identifier (provided under section 1842(r)) for the physician who prescribed the services or made the certification described in section 1814(a)(2) or 1835(a)(2)(A); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>in the case of a service visit described in paragraph (1), (2), (3), or (4) of section 186 l(m), the claim contains a code (or codes) specified by the Secretary that identifies the length of time of the service visit, as measured in 15 minute increments.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Limitation on Review</inline>.—</heading><chapeau>There shall be no administrative or judicial review under section 1869, 1878, or otherwise of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the establishment of a transition period under subsection (b)(1);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the definition and application of payment units under subsection (b)(2);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>the computation of initial standard prospective payment amounts under subsection (b)(3)(A) (including the reduction described in clause (ii) of such subsection);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>the establishment of the adjustment for outliers under subsection (b)(3)(C);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>the establishment of case mix and area wage adjustments under subsection (b)(4); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>the establishment of any adjustments for outliers under subsection (b)(5).”.</content></paragraph> </subsection> </section> </level> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Elimination of Periodic Interim Payments for Home Health Agencies</inline>.—</heading><chapeau>Section 1815(e)(2) (42 U.S.C. 1395g(e)(2)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by inserting “<quotedText>and</quotedText>” at the end of subparagraph (C),</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking subparagraph (D), and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by redesignating subparagraph (E) as subparagraph (D).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Payments under part a</inline>.—</heading><content>Section 1814(b) (42 U.S.C. 13951(b)) is amended in the matter preceding paragraph (1) by striking “<quotedText>and 1886</quotedText>” and inserting “<quotedText>1886, and 1895</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Treatment of items and services paid under part b</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">Payments under part b</inline>.—</heading><chapeau>Section 1833(a)(2) (42 U.S.C. 13951(a)(2)) is amended—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by amending subparagraph (A) to read as follows: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>with respect to home health services (other than a covered osteoporosis drug) (as defined in section 1861(kk)), the amount determined under the prospective payment system under section 1895;”;</content></subparagraph> </quotedContent> </content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking “<quotedText>and</quotedText>” at the end of subparagraph (E);</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>by adding “<quotedText>and</quotedText>” at the end of subparagraph (F); and</content></clause> <clause class="indent3 fontsize10"><num value="iv">(iv)</num> <content>by adding at the end the following new subparagraph:<page identifier="/us/stat/111/471">111 STAT. 471</page> <quotedContent> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <chapeau>with respect to items and services described in section 1861(s)(10)(A), the lesser of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the reasonable cost of such services, as determined under section 1861(v), or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the customary charges with respect to such services,</content></clause> <continuation class="indent0 fontsize10">or, if such services are furnished by a public provider of services, or by another provider which demonstrates to the satisfaction of the Secretary that a significant portion of its patients are low-income (and requests that payment be made under this provision), free of charge or at nominal charges to the public, the amount determined in accordance with section 1814(b)(2);”.</continuation> </subparagraph> </quotedContent> </content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Requiring payment for all items and services to be made to agency</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The first sentence of section 1842(b)(6) (42 U.S.C. 1395u(b)(6)) (as amended by section 4432(b)(2)) is amended—</chapeau> <subclause class="indent4 fontsize10"><num value="I">(I)</num> <content>by striking “<quotedText>and (E)</quotedText>” and inserting “<quotedText>(E)</quotedText>”; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">(II)</num> <content>by striking the period at the end and inserting the following: “, and (F) in the case of home health services furnished to an individual who (at the time the item or service is furnished) is under a plan of care of a home health agency, payment shall be made to the agency (without regard to whether or not the item or service was furnished by the agency, by others under arrangement with them made by the agency, or when any other contracting or consulting arrangement, or otherwise).”.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <heading><inline class="smallCaps">Conforming amendment</inline>.—</heading><content>Section 1832(a)(1) (42 U.S.C. 1395k(a)(1)) (as amended by section 4432(b)(5)(B)) is amended by striking “<quotedText>section 1842(b)(6)(E);</quotedText>” and inserting “<quotedText>subparagraphs (E) and (F) of section 1842(b)(6);</quotedText>”.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <heading><inline class="smallCaps">Exclusions from coverage</inline>.—</heading><chapeau>Section 1862(a) (42 U.S.C. 1395y(a)) (as amended by sections 4319(b), 4432(b), 4507(a)(2)(B) and 4541(b)) is amended—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by striking “<quotedText>or</quotedText>” at the end of paragraph (19);</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking the period at the end of paragraph (20) and inserting “<quotedText>; or</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>by inserting after paragraph (20) the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="21">“(21)</num> <content>where such expenses are for home health services furnished to an individual who is under a plan of care of the home health agency if the claim for payment for such services is not submitted by the agency.”.</content></subparagraph> </quotedContent> </content></clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>Except as otherwise provided, the<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395fff">42 USC 1395fff note</ref>.</p></sidenote> amendments made by this section shall apply to cost reporting periods beginning on or after October 1, 1999.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Contingency</inline>.—</heading><content>If the Secretary of Health and Human Services<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395fff">42 USC 1395fff note</ref>.</p></sidenote> for any reason does not establish and implement the prospective payment system for home health services described in section 1895(b) of the Social Security Act (as added by subsection (a)) for cost reporting periods described in subsection (d), for such cost reporting periods the Secretary shall provide for a reduction by 15 percent in the cost limits and per beneficiary limits described <page identifier="/us/stat/111/472">111 STAT. 472</page>in section 1861(v)(1)(L) of such Act, as those limits would otherwise be in effect on September 30, 1999.</content> </subsection> </section> <section> <num value="4604">SEC. 4604.</num> <heading>PAYMENT BASED ON LOCATION WHERE HOME HEALTH SERVICE IS FURNISHED.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Conditions of Participation</inline>.—</heading><content>Section 1891 (42 U.S.C. 1395bbb) is amended by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Payment on Basis of Location of Service</inline>.—</heading><content>A home health agency shall submit claims for payment for home health services under this title only on the basis of the geographic location at which the service is furnished, as determined by the Secretary.”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Wage Adjustment</inline>.—</heading><content>Section 1861(v)(1)(L)(iii) (42 U.S.C. 1395x(v)(1)(L)(iii)) is amended by striking “<quotedText>agency is located</quotedText>” and inserting “<quotedText>service is furnished</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section apply to cost reporting periods beginning on or after October 1, 1997.</content> </subsection> </section> </subchapter> <subchapter> <num value="B">Subchapter B—</num><heading>Home Health Benefits</heading> <section> <num value="4611">SEC. 4611.</num> <heading>MODIFICATION OF PART A HOME HEALTH BENEFIT FOR INDIVIDUALS ENROLLED UNDER PART B.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 1812 (42 U.S.C. 1395d) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subsection (a)(3), by striking “<quotedText>home health services</quotedText>” and inserting “<quotedText>for individuals not enrolled in part B, home health services, and for individuals so enrolled, post-institutional home health services furnished during a home health spell of illness for up to 100 visits during such spell of illness</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subsection (b), by adding after and below paragraph (3) the following: <quotedContent> <p class="indent0 fontsize10">“Payment under this part for post-institutional home health services furnished an individual during a home health spell of illness may not be made for such services beginning after such services have been furnished for a total of 100 visits such spell.”.</p> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Post-Institutional Home Health Services Defined</inline>.—</heading><content>Section 1861 (42 U.S.C. 1395x), as amended by sections 4103(a), 4104(a), 4105(a), 4106(a), and 4454, is amended by adding at the end the following: <quotedContent> <level> <heading class="centered">“Post-Institutional Home Health Services; Home Health Spell of Illness</heading> <subsection class="indent0 fontsize10"> <num value="tt">“(tt)</num><paragraph class="inline"><num value="1">(1)</num> <chapeau>The term ‘post-institutional home health services’ means home health services furnished to an individual—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>after discharge from a hospital or rural primary care hospital in which the individual was an inpatient for not less than 3 consecutive days before such discharge if such home health services were initiated within 14 days after the date of such discharge; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>after discharge from a skilled nursing facility in which the individual was provided post-hospital extended care services if such home health services were initiated within 14 days after the date of such discharge.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2)</num> <chapeau>The term ‘home health spell of illness’ with respect to any individual means a period of consecutive days—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>beginning with the first day (not included in a previous home health spell of illness) (i) on which such individual is <page identifier="/us/stat/111/473">111 STAT. 473</page>furnished post-institutional home health services, and (ii) which occurs in a month for which the individual is entitled to benefits under part A, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>ending with the close of the first period of 60 consecutive days thereafter on each of which the individual is neither an inpatient of a hospital or rural primary care hospital nor an inpatient of a facility described in section 1819(a)(1) or subsection (y)(1) nor provided home health services.”.</content></subparagraph> </paragraph> </subsection> </level> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Maintaining Appeal Rights for Home Health Services</inline>.—</heading><content>Section 1869(b)(2)(B) (42 U.S.C. 1395f(b)(2)(B)) is amended by inserting “<quotedText>(or $100 in the case of home health services)</quotedText>” after “$500”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Maintaining Seamless Administration Through Fiscal Intermediaries</inline>.—</heading><content>Section 1842(b)(2) (42 U.S.C. 1395u(b)(2)) is amended by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>With respect to the payment of claims for home health services under this part that, but for the amendments made by section 4611 of the Balanced Budget Act of 1997, would be payable under part A instead of under this part, the Secretary shall continue administration of such claims through fiscal intermediaries under section 1816.”.</content></subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Transition</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395d">42 USC 1395d note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Notwithstanding any provision of title XVIII of the Social Security Act, the Secretary of Health and Human Services shall establish a transition for the aggregate amount of expenditures that are transferred from part A, to part B, of title XVIII of the Social Security Act, as a result of the amendments made by this section, during each of the years during the period beginning with 1998 and ending with 2002 according to this subsection. Under the transition for each such year, the Secretary shall effect such transfer, between the trust funds under such parts, as will result in only the proportion (specified in paragraph (2)) of such aggregate expenditures for the year being transferred from such part A to such part B.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Proportion specified</inline>.—</heading><chapeau>The proportion specified in this paragraph for—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>1998 is ⅙,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>1999 is ⅓,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>2000 is ½,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>2001 is ⅔, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>2002 is ⅚.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Application in establishing monthly premiums for 1998 through 2003</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading></heading><chapeau>For purposes only of computing the monthly premium under section 1839 of the Social Security Act (42 U.S.C. 1395r), the monthly actuarial rate for enrollees age 65 and over shall be computed as though any reference in paragraph (1) of this subsection to 2002 were a reference to 2003 and as if the following proportions were substituted for the proportions specified in paragraph (2):</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>For 1998, ⅟7.</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>For 1999, 2/7.</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>For 2000, 3/7.</content></clause> <clause class="indent3 fontsize10"><num value="iv">(iv)</num> <content>For 2001, 4/7.</content></clause> <clause class="indent3 fontsize10"><num value="v">(v)</num> <content>For 2002, 5/7.</content></clause> <page identifier="/us/stat/111/474">111 STAT. 474</page> <clause class="indent3 fontsize10"><num value="vi">(vi)</num> <content>For 2003, 6/7.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">No impact on government contribution</inline>.—</heading><content>Subparagraph (A) does not apply in determining the amount of the Government contribution under section 1844 of the Social Security Act (42 U.S.C. 1395w).</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395d">42 USC 1395d note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section apply to services furnished on or after January 1, 1998. For purpose of applying such amendments, any home health spell of illness that began, but not did not end, before such date shall be considered to have begun as of such date.</content> </subsection> </section> <section> <num value="4612">SEC. 4612.</num> <heading>CLARIFICATION OF PART-TIME OR INTERMITTENT NURSING CARE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 1861(m) (42 U.S.C. 1395x(m)) is amended by adding at the end the following: “<quotedText>For purposes of paragraphs (1) and (4), the term ‘part-time or intermittent services’ means skilled nursing and home health aide services furnished any number of days per week as long as they are furnished (combined) less than 8 hours each day and 28 or fewer hours each week (or, subject to review on a case-by-case basis as to the need for care, less than 8 hours each day and 35 or fewer hours per week). For purposes of sections 1814(a)(2)(C) and 1835(a)(2)(A), ‘intermittent’ means skilled nursing care that is either provided or needed on fewer than 7 days each week, or less than 8 hours of each day for periods of 21 days or less (with extensions in exceptional circumstances when the need for additional care is finite and predictable).</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) applies to services furnished on or after October 1, 1997.</content> </subsection> </section> <section> <num value="4613">SEC. 4613.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x note</ref>.</p></sidenote> <heading>STUDY ON DEFINITION OF HOMEBOUND.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Study</inline>.—</heading><content>The Secretary of Health and Human Services shall conduct a study of the criteria that should be applied, and the method of applying such criteria, in the determination of whether an individual is homebound for purposes of qualifying for receipt of benefits for home health services under the medicare program. Such criteria shall include the extent and circumstances under which a person may be absent from the home but nonetheless qualify.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than October 1, 1998, the Secretary shall submit a report to Congress on the study conducted under subsection (a). The report shall include specific recommendations on such criteria and methods.</content> </subsection> </section> <section> <num value="4614">SEC. 4614.</num> <heading>NORMATIVE STANDARDS FOR HOME HEALTH CLAIMS DENIALS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 1862(a)(1) (42 U.S.C. 1395y(a)(1)) (as amended by section 4104(c)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>and</quotedText>” at the end of subparagraph (G),</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking the semicolon at the end of subparagraph (H) and inserting “<quotedText>, and</quotedText>”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by inserting after subparagraph (H) the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="I">“(I)</num> <content>the frequency and duration of home health services which are in excess of normative guidelines that the Secretary shall establish by regulation;”.</content></subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395y">42 USC 1395y note</ref>.</p></sidenote> <heading><inline class="smallCaps">Notification</inline>.—</heading><content>The Secretary of Health and Human Services may establish a process for notifying a physician in cases <page identifier="/us/stat/111/475">111 STAT. 475</page>in which the number of home health visits, furnished under title XVIII of the Social Security Act pursuant to a prescription or certification of the physician, significantly exceeds such threshold (or thresholds) as the Secretary specifies. The Secretary may adjust such threshold to reflect demonstrated differences in the need for home health services among different beneficiaries.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395y">42 USC 1395y note</ref>.</p></sidenote> apply to services furnished on or after October 1, 1997.</content> </subsection> </section> <section> <num value="4615">SEC. 4615.</num> <heading>NO HOME HEALTH BENEFITS BASED SOLELY ON DRAWING BLOOD.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Sections 1814(a)(2)(C) and 1835(a)(2)(A) (42 U.S.C. 1395f(a)(2)(C), 1395n(a)(2)(A)) are each amended by inserting “<quotedText>(other than solely venipuncture for the purpose of obtaining a blood sample)</quotedText>” after “skilled nursing care”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by subsection<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395f">42 USC 1395f note</ref>.</p></sidenote> (a) apply to home health services furnished after the 6-month period beginning after the date of enactment of this Act.</content> </subsection> </section> <section> <num value="4616">SEC. 4616.</num> <heading>REPORTS TO CONGRESS REGARDING HOME HEALTH COST CONTAINMENT.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395y">42 USC 1395y note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Estimate</inline>.—</heading><content>Not later than October 1, 1997, the Secretary of Health and Human Services shall submit to the Committees on Commerce and Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report that includes an estimate of the outlays that will be made under parts A and B of title XVIII of the Social Security Act for the provision of home health services during each of fiscal years 1998 through 2002.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Annual Report</inline>.—</heading><content>Not later than the end of each of years 1999 through 2002, the Secretary shall submit to such Committees a report that compares the actual outlays under such parts for such services during the fiscal year ending in the year, to the outlays estimated under subsection (a) for such fiscal year. If the Secretary finds that such actual outlays were greater than such estimated outlays for the fiscal year, the Secretary shall include in the report recommendations regarding beneficiary copayments for home health services provided under the medicare program or such other methods as will reduce the growth in outlays for home health services under the medicare program.</content> </subsection> </section> </subchapter> </chapter> <chapter> <num value="2">CHAPTER 2—</num><heading>GRADUATE MEDICAL EDUCATION</heading> <subchapter> <num value="A">Subchapter A—</num><heading>Indirect Medical Education</heading> <section> <num value="4621">SEC. 4621.</num> <heading>INDIRECT GRADUATE MEDICAL EDUCATION PAYMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Multiyear Transition Regarding Percentages</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 1886(d)(5)(B)(ii) (42 U.S.C. 1395ww(d)(5)(B)(ii)) is amended to read as follows: <quotedContent> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>For purposes of clause (i)(II), the indirect teaching adjustment factor is equal to c × (((1+r) to the nth power) − 1), where V is the ratio of the hospital’s full-time equivalent interns and residents to beds and ‘n’ equals .405. For discharges occurring—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>on or after October 1, 1988, and before October 1, 1997, ‘c’ is equal to 1.89;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>during fiscal year 1998, ‘c’ is equal to 1.72;</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>during fiscal year 1999, ‘c’ is equal to 1.6;<page identifier="/us/stat/111/476">111 STAT. 476</page></content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>during fiscal year 2000, ‘c’ is equal to 1.47; and</content></subclause> <subclause class="indent4 fontsize10"><num value="V">“(V)</num> <content>on or after October 1, 2000, ‘c’ is equal to 1.35.”.</content></subclause> </clause> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conforming amendment relating to determination of standardized amount</inline>.—</heading><content>Section 1886(d)(2)(C)(i) (42 U.S.C. 1395ww(d)(2)(C)(i)) is amended by adding at the end the following: “<quotedText>except that the Secretary shall not take into account any reduction in the amount of additional payments under paragraph (5)(B)(ii) resulting from the amendment made by section 4621(a)(1) of the Balanced Budget Act of 1997,</quotedText>”</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Limitation on Number of Residents for Certain Fiscal Years</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 1886(d)(5)(B) (42 U.S.C. 1395ww(d)(5)(B)) is amended by adding after clause (iv) the following: <quotedContent> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>In determining the adjustment with respect to a hospital for discharges occurring on or after October 1, 1997, the total number of full-time equivalent interns and residents in the fields of allopathic and osteopathic medicine in either a hospital or nonhospital setting may not exceed the number of such full-time equivalent interns and residents in the hospital with respect to the hospital’s most recent cost reporting period ending on or before December 31, 1996.</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(vi)</num> <chapeau>For purposes of clause (ii)—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>‘r’ may not exceed the ratio of the number of interns and residents, subject to the limit under clause (v), with respect to the hospital for its most recent cost reporting period to the hospital’s available beds (as defined by the Secretary) during that cost reporting period, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>for the hospital’s cost reporting periods beginning on or after October 1, 1997, subject to the limits described in clauses (iv) and (v), the total number of full-time equivalent residents for payment purposes shall equal the average of the actual full-time equivalent resident count for the cost reporting period and the preceding two cost reporting periods.</content></subclause> <continuation class="indent0 fontsize10">In the case of the first cost reporting period beginning on or after October 1, 1997, subclause (II) shall be applied by using the average for such period and the preceding cost reporting period.</continuation> </clause> <clause class="indent3 fontsize10"><num value="vii">“(vii)</num> <content>If any cost reporting period beginning on or after October 1, 1997, is not equal to twelve months, the Secretary shall make appropriate modifications to ensure that the average full-time equivalent residency count pursuant to subclause (II) of clause (vi) is based on the equivalent of full twelve-month cost reporting periods.</content></clause> <clause class="indent3 fontsize10"><num value="viii">“(viii)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> <content>Rules similar to the rules of subsection (h)(4)(H) shall apply for purposes of clauses (v) and (vi).”.</content></clause> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Payment for interns and residents providing offsite services</inline>.—</heading><content>Section 1886(d)(5)(B)(iv) (42 U.S.C. 1395ww(d)(5)(B)(iv)) is amended to read as follows: <quotedContent> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> <content>Effective for discharges occurring on or after October 1, 1997, all the time spent by an intern or resident in patient care activities under an approved medical residency training <page identifier="/us/stat/111/477">111 STAT. 477</page>program at an entity in a nonhospital setting shall be counted towards the determination of full-time equivalency if the hospital incurs all, or substantially all, of the costs for the training program in that setting.”.</content></clause> </quotedContent> </content></paragraph> </subsection> </section> <section> <num value="4622">SEC. 4622.</num> <heading>PAYMENT TO HOSPITALS OF INDIRECT MEDICAL EDUCATION COSTS FOR MEDICARE+CHOICE ENROLLEES.</heading> <content>Section 1886(d) (42 U.S.C. 1395ww(d)) is amended by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="11">“(11)</num> <heading><inline class="smallCaps">Additional payments for managed care enrollees</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>For portions of cost reporting periods occurring on or after January 1, 1998, the Secretary shall provide for an additional payment amount for each applicable discharge of any subsection (d) hospital that has an approved medical residency training program.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Applicable discharge</inline>.—</heading><content>For purposes of this paragraph, the term ‘applicable discharge’ means the discharge of any individual who is enrolled under a risksharing contract with an eligible organization under section 1876 and who is entitled to benefits under part A or any individual who is enrolled with a Medicare+Choice organization under part C.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Determination of amount</inline>.—</heading><content>The amount of the payment under this paragraph with respect to any applicable discharge shall be equal to the applicable percentage (as defined in subsection (h)(3)(D)(ii)) of the estimated average per discharge amount that would otherwise have been paid under paragraph (5)(B) if the individuals had not been enrolled as described in subparagraph (B).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Special rule for hospitals under reimbursement system</inline>.—</heading><content>The Secretary shall establish rules for the application of this paragraph to a hospital reimbursed under a reimbursement system authorized under section 1814(b)(3) in the same manner as it would apply to the hospital if it were not reimbursed under such section.”.</content></subparagraph> </paragraph> </quotedContent> </content></section> </subchapter> <subchapter> <num value="B">Subchapter B—</num><heading>Direct Graduate Medical Education</heading> <section> <num value="4623">SEC. 4623.</num> <heading>LIMITATION ON NUMBER OF RESIDENTS AND ROLLING AVERAGE FTE COUNT.</heading> <content>Section 1886(h)(4) (42 U.S.C. 1395ww(h)(4)) is amended by adding after subparagraph (E) the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <heading><inline class="smallCaps">Limitation on number of residents in allopathic and osteopathic medicine</inline>.—</heading><content>Such rules shall provide that for purposes of a cost reporting period beginning on or after October 1, 1997, the total number of full-time equivalent residents before application of weighting factors (as determined under this paragraph) with respect to a hospital’s approved medical residency training program in the fields of allopathic medicine and osteopathic medicine may not exceed the number of such full-time equivalent residents for the hospital’s most recent cost reporting period ending on or before December 31, 1996.<page identifier="/us/stat/111/478">111 STAT. 478</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <heading><inline class="smallCaps">Counting interns and residents for fy 1998 and subsequent years</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>For cost reporting periods beginning during fiscal years beginning on or after October 1, 1997, subject to the limit described in subparagraph (F), the total number of full-time equivalent residents for determining a hospital’s graduate medical education payment shall equal the average of the actual full-time equivalent resident counts for the cost reporting period and the preceding two cost reporting periods.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Adjustment for short periods</inline>.—</heading><content>If any cost reporting period beginning on or after October 1, 1997, is not equal to twelve months, the Secretary shall make appropriate modifications to ensure that the average full-time equivalent resident counts pursuant to clause (i) are based on the equivalent of full twelvemonth cost reporting periods.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Transition rule for 1998</inline>.—</heading><content>In the case of a hospital’s first cost reporting period beginning on or after October 1, 1997, clause (i) shall be applied by using the average for such period and the preceding cost reporting period.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num> <heading><inline class="smallCaps">Special rules for application of subparagraphs (f) and (g)</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">New facilities</inline>.—</heading><content>The Secretary shall, consistent with the principles of subparagraphs (F) and (G), prescribe rules for the application of such subparagraphs in the case of medical residency training programs established on or after January 1, 1995. In promulgating such rules for purposes of subparagraph (F), the Secretary shall give special consideration to facilities that meet the needs of underserved rural areas.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Aggregation</inline>.—</heading><content>The Secretary may prescribe rules which allow institutions which are members of the same affiliated group (as defined by the Secretary) to elect to apply the limitation of subparagraph (F) on an aggregate basis.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Data collection</inline>.—</heading><content>The Secretary may require any entity that operates a medical residency training program and to which subparagraphs (F) and (G) apply to submit to the Secretary such additional information as the Secretary considers necessary to carry out such subparagraphs.”.</content></clause> </subparagraph> </quotedContent> </content></section> <section> <num value="4624">SEC. 4624.</num> <heading>PAYMENTS TO HOSPITALS FOR DIRECT COSTS OF GRADUATE MEDICAL EDUCATION OF MEDICARE+CHOICE ENROLLEES.</heading> <content>Section 1886(h)(3) (42 U.S.C. 1395ww(h)(3)) is amended by adding after subparagraph (C) the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Payment for managed care enrollees</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For portions of cost reporting periods occurring on or after January 1, 1998, the Secretary shall provide for an additional payment amount under this subsection for services furnished to individuals who are enrolled under a risk-sharing contract with an eligible organization under section <page identifier="/us/stat/111/479">111 STAT. 479</page>1876 and who are entitled to part A or with a Medicare+Choice organization under part C. The amount of such a payment shall equal the applicable percentage of the product of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the aggregate approved amount (as defined in subparagraph (B)) for that period; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the fraction of the total number of inpatient-bed days (as established by the Secretary) during the period which are attributable to such enrolled individuals.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Applicable percentage</inline>.—</heading><chapeau>For purposes of clause (i), the applicable percentage is—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>20 percent in 1998,</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>40 percent in 1999,</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>60 percent in 2000, and</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>80 percent in 2001, and</content></subclause> <subclause class="indent4 fontsize10"><num value="V">“(V)</num> <content>100 percent in 2002 and subsequent years.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Special rule for hospitals under reimbursement system</inline>.—</heading><content>The Secretary shall establish rules for the application of this subparagraph to a hospital reimbursed under a reimbursement system authorized under section 1814(b)(3) in the same manner as it would apply to the hospital if it were not reimbursed under such section.”.</content></clause> </subparagraph> </quotedContent> </content></section> <section> <num value="4625">SEC. 4625.</num> <heading>PERMITTING PAYMENT TO NONHOSPITAL PROVIDERS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 1886 (42 U.S.C. 1395ww), as amended by section 4421(a), is amended by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="k">“(k)</num> <heading><inline class="smallCaps">Payment to Nonhospital Providers</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>For cost reporting periods beginning on or after October 1, 1997, the Secretary may establish rules for payment to qualified nonhospital providers for their direct costs of medical education, if those costs are incurred in the operation of an approved medical residency training program described in subsection (h). Such rules shall specify the amounts, form, and manner in which such payments will be made and the portion of such payments that will be made from each of the trust funds under this title.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Qualified nonhospital providers</inline>.—</heading><chapeau>For purposes of this subsection, the term ‘qualified nonhospital providers’ means—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>a Federally qualified health center, as defined in section 1861(aa)(4);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>a rural health clinic, as defined in section 1861(aa)(2);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>Medicare+Choice organizations; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>such other providers (other than hospitals) as the Secretary determines to be appropriate.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Prohibition on Double Payments</inline>.—</heading><content>Section 1886(h)(3)(B) (42 U.S.C. 1395ww(h)(3)(B)) is amended by adding at the end the following: <quotedContent> <p class="indent0 fontsize10">“The Secretary shall reduce the aggregate approved amount to the extent payment is made under subsection (k) for residents included in the hospital’s count of full-time equivalent residents.”.<page identifier="/us/stat/111/480">111 STAT. 480</page></p> </quotedContent> </content></subsection> </section> <section> <num value="4626">SEC. 4626.</num> <heading>INCENTIVE PAYMENTS UNDER PLANS FOR VOLUNTARY REDUCTION IN NUMBER OF RESIDENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 1886(h) (42 U.S.C. 1395ww(h)) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Incentive Payment under plans for voluntary reduction in number of residents</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of a voluntary residency reduction plan for which an application is approved under subparagraph (B), subject to subparagraph (F), each hospital which is part of the qualifying entity submitting the plan shall be paid an applicable hold harmless percentage (as specified in subparagraph (E)) of the sum of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <chapeau>the amount (if any) by which—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the amount of payment which would have been made under this subsection if there had been a 5-percent reduction in the number of full-time equivalent residents in the approved medical education training programs of the hospital as of June 30, 1997, exceeds</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the amount of payment which is made under this subsection, taking into account the reduction in such number effected under the reduction plan; and</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the amount of the reduction in payment under subsection (d)(5)(B) for the hospital that is attributable to the reduction in number of residents effected under the plan below 95 percent of the number of full-time equivalent residents in such programs of the hospital as of June 30, 1997.</content></clause> <continuation class="indent0 fontsize10">The determination of the amounts under clauses (i) and (ii) for any year shall be made on the basis of the provisions of this title in effect on the application deadline date for the first calendar year to which the reduction plan applies.</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Approval of plan applications</inline>.—</heading><chapeau>The Secretary may not approve the application of an qualifying entity unless—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the application is submitted in a form and manner specified by the Secretary and by not later than November 1, 1999,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the application provides for the operation of a plan for the reduction in the number of full-time equivalent residents in the approved medical residency training programs of the entity consistent with the requirements of subparagraph (D);</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>the entity elects in the application the period of residency training years (not greater than 5) over which the reduction will occur;</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>the entity will not reduce the proportion of its residents in primary care (to the total number of residents) below such proportion as in effect as of the applicable time described in subparagraph (D)(v); and</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>the Secretary determines that the application and the entity and such plan meet such other requirements as the Secretary specifies in regulations.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Qualifying entity</inline>.—</heading><chapeau>For purposes of this paragraph, any of the following may be a qualifying entity:<page identifier="/us/stat/111/481">111 STAT. 481</page></chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>Individual hospitals operating one or more approved medical residency training programs.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>Two or more hospitals that operate such programs and apply for treatment under this paragraph as a single qualifying entity.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>A qualifying consortium (as described in section 4628 of the Balanced Budget Act of 1997).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Residency reduction requirements</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Individual hospital applicants</inline>.—</heading><chapeau>In the case of a qualifying entity described in subparagraph (C)(i), the number of full-time equivalent residents in all the approved medical residency training programs operated by or through the entity shall be reduced as follows:</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>If the base number of residents exceeds 750 residents, by a number equal to at least 20 percent of such base number.</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>Subject to subclause (IV), if the base number of residents exceeds 600 but is less than 750 residents, by 150 residents.</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>Subject to subclause (IV), if the base number of residents does not exceed 600 residents, by a number equal to at least 25 percent of such base number.</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>In the case of a qualifying entity which is described in clause (v) and which elects treatment under this subclause, by a number equal to at least 20 percent of the base number.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Joint applicants</inline>.—</heading><chapeau>In the case of a qualifying entity described in subparagraph (C)(ii), the number of full-time equivalent residents in the aggregate for all the approved medical residency training programs operated by or through the entity shall be reduced as follows:</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>Subject to subclause (II), by a number equal to at least 25 percent of the base number.</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>In the case of such a qualifying entity which is described in clause (v) and which elects treatment under this subclause, by a number equal to at least 20 percent of the base number.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Consortia</inline>.—</heading><content>In the case of a qualifying entity described in subparagraph (C)(iii), the number of fulltime equivalent residents in the aggregate for all the approved medical residency training programs operated by or through the entity shall be reduced by a number equal to at least 20 percent of the base number.</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <heading><inline class="smallCaps">Manner of reduction</inline>.—</heading><content>The reductions specified under the preceding provisions of this subparagraph for a qualifying entity shall be below the base number of residents for that entity and shall be fully effective not later than the 5th residency training year in which the application under subparagraph (B) is effective.</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <heading><inline class="smallCaps">Entities providing assurance of increase in primary care residents</inline>.—</heading><chapeau>An entity is described in this clause if—<page identifier="/us/stat/111/482">111 STAT. 482</page></chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the base number of residents for the entity is less than 750 or the entity is described in subparagraph (C)(ii); and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the entity represents in its application under subparagraph (B) that it will increase the number of full-time equivalent residents in primary care by at least 20 percent (from such number included in the base number of residents) by not later than the 5th residency training year in which the application under subparagraph (B) is effective.</content></subclause> <continuation class="indent0 fontsize10">If a qualifying entity fails to comply with the representation described in subclause (II) by the end of such 5th residency training year, the entity shall be subject to repayment of all amounts paid under this paragraph, in accordance with procedures established to carry out subparagraph (F).</continuation> </clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <heading><inline class="smallCaps">Base Number of residents defined</inline>.—</heading><content>For purposes of this paragraph, the term ‘base number of residents’ means, with respect to a qualifying entity (or its participating hospitals) operating approved medical residency training programs, the number of full-time equivalent residents in such programs (before application of weighting factors) of the entity as of the most recent residency training year ending before June 30, 1997, or, if less, for any subsequent residency training year that ends before the date the entity makes application under this paragraph.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Applicable hold harmless percentage</inline>.—</heading><chapeau>For purposes of subparagraph (A), the ‘applicable hold harmless percentage’ for the—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>first and second residency training years in which the reduction plan is in effect, 100 percent,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>third such year, 75 percent,</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>fourth such year, 50 percent, and</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>fifth such year, 25 percent.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <heading><inline class="smallCaps">Penalty for noncompllance</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>No payment may be made under this paragraph to a hospital for a residency training year if the hospital has failed to reduce the number of full-time equivalent residents (in the manner required under subparagraph (D)) to the number agreed to by the Secretary and the qualifying entity in approving the application under this paragraph with respect to such year.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Increase in number of residents in subsequent years</inline>.—</heading><content>If payments are made under this paragraph to a hospital, and if the hospital increases the number of full-time equivalent residents above the number of such residents permitted under the reduction plan as of the completion of the plan, then, as specified by the Secretary, the entity is liable for repayment to the Secretary of the total amounts paid under this paragraph to the entity.<page identifier="/us/stat/111/483">111 STAT. 483</page></content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <heading><inline class="smallCaps">Treatment of rotating residents</inline>.—</heading><content>In applying<sidenote><p class="indent0 firstIndent0 fontsize8">Rules.</p></sidenote> this paragraph, the Secretary shall establish rules regarding the counting of residents who are assigned to institutions the medical residency training programs in which are not covered under approved applications under this paragraph.”.</content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Relation to Demonstration Projects and Authority</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395ww">42 USC 1395ww note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Section 1886(h)(6) of the Social Security Act, added by subsection (a), other than subparagraph (F)(ii) thereof, shall not apply to any residency training program with respect to which a demonstration project described in paragraph (3) has been approved by the Health Care Financing Administration as of May 27, 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Effective May 27, 1997, the Secretary of Health and<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> Human Services is not authorized to approve any demonstration project described in paragraph (3) for any residency training year beginning before July 1, 2006.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>A demonstration project described in this paragraph is a project that primarily provides for additional payments under title XVIII of the Social Security Act in connection with a reduction in the number of residents in a medical residency training program.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Interim, Final Regulations</inline>.—</heading><content>In order to carry out the amendment made by subsection (a) in a timely manner, the Secretary of Health and Human Services may first promulgate regulations, that take effect on an interim basis, after notice and pending opportunity for public comment, by not later than 6 months after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="4627">SEC. 4627.</num> <heading>MEDICARE SPECIAL REIMBURSEMENT RULE FOR PRIMARY CARE COMBINED RESIDENCY PROGRAMS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 1886(h)(5)(G) of the Social Security Act (42 U.S.C. 1395ww(h)(5)(G)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in clause (i), by striking “<quotedText>and (iii)</quotedText>” and inserting “<quotedText>, (iii), and (iv)</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following: <quotedContent> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <heading><inline class="smallCaps">Special rule for certain primary care combined residency programs</inline>.—</heading><subclause class="inline"><num value="I">(I)</num> <content>In the case of a resident enrolled in a combined medical residency training program in which all of the individual programs (that are combined) are for training a primary care resident (as defined in subparagraph (H)), the period of board eligibility shall be the minimum number of years of formal training required to satisfy the requirements for initial board eligibility in the longest of the individual programs plus one additional year.</content></subclause> <subclause class="indent0 fontsize10"><num value="II">“(II)</num> <content>A resident enrolled in a combined medical residency training program that includes an obstetrics and gynecology program shall qualify for the period of board eligibility under subclause (I) if the other programs such resident combines with such obstetrics and gynecology program are for training a primary care resident.”.</content></subclause> </clause> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by subsection<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395ww">42 USC 1395ww note</ref>.</p></sidenote> (a) apply to combined medical residency training programs in effect for residency years beginning on or after July 1, 1997.<page identifier="/us/stat/111/484">111 STAT. 484</page></content> </subsection> </section> <section> <num value="4628">SEC. 4628.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395ww">42 USC 1395ww note</ref>.</p></sidenote> <heading>DEMONSTRATION PROJECT ON USE OF CONSORTIA.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>The Secretary of Health and Human Services (in this section referred to as the “Secretary”) shall establish a demonstration project under which, instead of making payments to teaching hospitals pursuant to section 1886(h) of the Social Security Act, the Secretary shall make payments under this section to each consortium that meets the requirements of subsection (b) and that applies to be included under the project.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Qualifying Consortia</inline>.—</heading><chapeau>For purposes of subsection (a), a consortium meets the requirements of this subsection if the consortium is in compliance with the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>The consortium consists of a teaching hospital with one or more approved medical residency training programs and one or more of the following entities:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>A school of allopathic medicine or osteopathic medicine.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Another teaching hospital, which may be a children’s hospital.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>A Federally qualified health center.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>A medical group practice.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>A managed care entity.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F)</num> <content>An entity furnishing outpatient services.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">(G)</num> <content>Such other entity as the Secretary determines to be appropriate.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>The members of the consortium have agreed to participate in the programs of graduate medical education that are operated by the entities in the consortium.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>With respect to the receipt by the consortium of payments made pursuant to this section, the members of the consortium have agreed on a method for allocating the payments among the members.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>The consortium meets such additional requirements as the Secretary may establish.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Amount and Source of Payment</inline>.—</heading><content>The total of payments to a qualifying consortium for a fiscal year pursuant to subsection (a) shall not exceed the amount that would have been paid under section 1886 (h) or (k) of the Social Security Act for the teaching hospital (or hospitals) in the consortium. Such payments shall be made in such proportion from each of the trust funds established under title XVIII of such Act as the Secretary specifies.</content> </subsection> </section> <section> <num value="4629">SEC. 4629.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395ww">42 USC 1395ww note</ref>.</p></sidenote> <heading>RECOMMENDATIONS ON LONG-TERM POLICIES REGARDING TEACHING HOSPITALS AND GRADUATE MEDICAL EDUCATION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>The Medicare Payment Advisory Commission (established under section 1805 of the Social Security Act and in this section referred to as the “Commission”) shall examine and develop recommendations on whether and to what extent medicare payment policies and other Federal policies regarding teaching hospitals and graduate medical education should be changed. Such recommendations shall include recommendations regarding each of the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>Possible methodologies for making payments for graduate medical education and the selection of entities to receive such payments. Matters considered under this paragraph shall include—<page identifier="/us/stat/111/485">111 STAT. 485</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>issues regarding children’s hospitals and approved medical residency training programs in pediatrics, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>whether and to what extent payments are being made (or should be made) for training in the nursing and other allied health professions.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Federal policies regarding international medical graduates.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>The dependence of schools of medicine on service-generated income.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>Whether and to what extent the needs of the United States regarding the supply of physicians, in the aggregate and in different specialties, will change during the 10-year period beginning on October 1, 1997, and whether and to what extent any such changes will have significant financial effects on teaching hospitals.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>Methods for promoting an appropriate number, mix, and geographical distribution of health professionals.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Consultation</inline>.—</heading><chapeau>In conducting the study under subsection (a), the Commission shall consult with the Council on Graduate Medical Education and individuals with expertise in the area of graduate medical education, including—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>deans from allopathic and osteopathic schools of medicine;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>chief executive officers (or equivalent administrative heads) from academic health centers, integrated health care systems, approved medical residency training programs, and teaching hospitals that sponsor approved medical residency training programs;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>chairs of departments or divisions from allopathic and osteopathic schools of medicine, schools of dentistry, and approved medical residency training programs in oral surgery;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>individuals with leadership experience from representative fields of non-physician health professionals;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>individuals with substantial experience in the study of issues regarding the composition of the health care workforce of the United States; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>individuals with expertise in health care payment policies.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than 2 years after the date of the enactment of this Act, the Commission shall submit to the Congress a report providing its recommendations under this section and the reasons and justifications for such recommendations.</content> </subsection> </section> <section> <num value="4630">SEC. 4630.</num> <heading>STUDY OF HOSPITAL OVERHEAD AND SUPERVISORY PHYSICIAN COMPONENTS OF DIRECT MEDICAL EDUCATION COSTS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395ww">42 USC 1395ww note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>The Secretary of Health and Human Services shall conduct a study with respect to—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>variations among hospitals in the hospital overhead and supervisory physician components of their direct medical education costs taken into account under section 1886(h) of the Social Security Act, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>the reasons for such variations.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than 1 year after the date of the enactment of this Act, the Secretary shall report the results of the study conducted under subsection (a) to the appropriate committees of Congress, including recommendations for legislation reducing <page identifier="/us/stat/111/486">111 STAT. 486</page>variations described in subsection (a) that the Secretary finds inappropriate.</content> </subsection> </section> </subchapter> </chapter> <chapter> <num value="3">CHAPTER 3—</num><heading>PROVISIONS RELATING TO MEDICARE SECONDARY PAYER</heading> <section> <num value="4631">SEC. 4631.</num> <heading>PERMANENT EXTENSION AND REVISION OF CERTAIN SECONDARY PAYER PROVISIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Application to Disabled Individuals in Large Group Health Plans</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Section 1862(b)(1)(B) (42 U.S.C. 1395y(b)(1)(B)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in clause (i), by striking “<quotedText>clause (iv)</quotedText>” and inserting “<quotedText>clause (iii)</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking clause (iii); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by redesignating clause (iv) as clause (iii).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading><content>Paragraphs (1) through (3) of section 1837(i) (42 U.S.C. 1395p(i)) and the second sentence of section 1839(b) (42 U.S.C. 1395r(b)) are each amended by striking “<quotedText>1862(b)(1)(B)(iv)</quotedText>” each place it appears and inserting “<quotedText>1862(b)(1)(B)(iii)</quotedText>”</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Individuals With End Stage Renal Disease</inline>.—</heading><chapeau>Section 1862(b)(1)(C) (42 U.S.C. 1395y(b)(1)(C)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in the last sentence by striking “<quotedText>October 1, 1998</quotedText>” and inserting “<quotedText>the date of enactment of the Balanced Budget Act of 1997</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> <content>by adding at the end the following: “<quotedText>Effective for items and services furnished on or after the date of enactment of the Balanced Budget Act of 1997, (with respect to periods beginning on or after the date that is 18 months prior to such date), clauses (i) and (ii) shall be applied by substituting ‘30-month’ for ‘12-month’ each place it appears.</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">IRS-SSA-HCFA Data Match</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Social security act</inline>.—</heading><content>Section 1862(b)(5)(C) (42 U.S.C. 1395y(b)(5)(C)) is amended by striking clause (iii).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Internal revenue code</inline>.—</heading><content>Section 6103(l)(12) of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6103">26 USC 6103</ref>.</p></sidenote>Internal Revenue Code of 1986 is amended by striking subparagraph (F).</content></paragraph> </subsection> </section> <section> <num value="4632">SEC. 4632.</num> <heading>CLARIFICATION OF TIME AND FILING LIMITATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps"> Extension of Claims Filing Period</inline>.—</heading><content>Section 1862(b)(2)(B) (42 U.S.C. 1395y(b)(2)(B)) is amended by adding at the end the following new clause: <quotedContent> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <heading><inline class="smallCaps">Claims-filing period</inline>.—</heading><content>Notwithstanding any other time limits that may exist for filing a claim under an employer group health plan, the United States may seek to recover conditional payments in accordance with this subparagraph where the request for payment is submitted to the entity required or responsible under this subsection to pay with respect to the item or service (or any portion thereof) under a primary plan within the 3-year period beginning on the date on which the item or service was furnished.”.</content></clause> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395y">42 USC 1395y note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section apply to items and services furnished on or after the date of the enactment of this Act.<page identifier="/us/stat/111/487">111 STAT. 487</page></content> </subsection> </section> <section> <num value="4633">SEC. 4633.</num> <heading>PERMITTING RECOVERY AGAINST THIRD PARTY ADMINISTRATORS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a)</num> <heading><inline class="smallCaps">Permitting Recovery Against Third Party Administrators of Primary Plans</inline>.—</heading><chapeau>Section 1862(b)(2)(B)(ii) (42 U.S.C. 1395y(b)(2)(B)(ii)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>under this subsection to pay</quotedText>” and inserting “<quotedText>(directly, as a third-party administrator, or otherwise) to make payment</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following: “<quotedText>The United States may not recover from a third-party administrator under this clause in cases where the third-party administrator would not be able to recover the amount at issue from the employer or group health plan and is not employed by or under contract with the employer or group health plan at the time the action for recovery is initiated by the United States or for whom it provides administrative services due to the insolvency or bankruptcy of the employer or plan.</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Clarification of Beneficiary Liability</inline>.—</heading><content>Section 1862(b)(1) (42 U.S.C. 1395y(b)(1)) is amended by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <heading><inline class="smallCaps">Limitation on beneficiary liability</inline>.—</heading><content>An individual who is entitled to benefits under this title and is furnished an item or service for which such benefits are incorrectly paid is not liable for repayment of such benefits under this paragraph unless payment of such benefits was made to the individual.”.</content></subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395y">42 USC 1395y note</ref>.</p></sidenote> apply to items and services furnished on or after the date of the enactment of this Act.</content> </subsection> </section> </chapter> <chapter> <num value="4">CHAPTER 4—</num><heading>OTHER PROVISIONS</heading> <section> <num value="4641">SEC. 4641.</num> <heading>PLACEMENT OF ADVANCE DIRECTIVE IN MEDICAL RECORD.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 1866(f)(1)(B) (42 U.S.C. 1395cc(f)(1)(B)) is amended by striking “<quotedText>in the individual’s medical record</quotedText>” and inserting “<quotedText>in a prominent part of the individual’s current medical record</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a)<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395cc">42 USC 1395cc note</ref>.</p></sidenote> shall apply to provider agreements entered into, renewed, or extended on or after such date (not later than 1 year after the date of the enactment of this Act) as the Secretary of Health and Human Services specifies.</content> </subsection> </section> <section> <num value="4642">SEC. 4642.</num> <heading>INCREASED CERTIFICATION PERIOD FOR CERTAIN ORGAN PROCUREMENT ORGANIZATIONS.</heading> <content>Section 1138(b)(1)(A)(ii) (42 U.S.C. 1320b–8(b)(1)(A)(ii)) is amended by striking “<quotedText>two years</quotedText>” and inserting “<quotedText>2 years (4 years if the Secretary determines appropriate for an organization on the basis of its past practices)</quotedText>”.</content> </section> <section> <num value="4643">SEC. 4643.</num> <heading>OFFICE OF THE CHIEF ACTUARY IN THE HEALTH CARE FINANCING ADMINISTRATION.</heading> <chapeau>Section 1117 (42 U.S.C. 1317) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in the heading, by inserting “<quotedText><inline class="smallCaps">and chief actuary</inline></quotedText>” after “<inline class="smallCaps">the administrator</inline>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting “<quotedText>(a)</quotedText>” before “The Administrator”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by adding at the end the following:<page identifier="/us/stat/111/488">111 STAT. 488</page> <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Establishment.</p></sidenote><paragraph class="inline"><num value="1">(1)</num> <content>There is established in the Health Care Financing Administration the position of Chief Actuary. The Chief Actuary shall be appointed by, and in direct line of authority to, the Administrator of such Administration. The Chief Actuary shall be appointed from among individuals who have demonstrated, by their education and experience, superior expertise in the actuarial sciences. The Chief Actuary shall exercise such duties as are appropriate for the office of the Chief Actuary and in accordance with professional standards of actuarial independence. The Chief Actuary may be removed only for cause.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>The Chief Actuary shall be compensated at the highest rate of basic pay for the Senior Executive Service under section 5382(b) of title 5, United States Code.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> </section> <section> <num value="4644">SEC. 4644.</num> <heading>CONFORMING AMENDMENTS TO COMPLY WITH CONGRESSIONAL REVIEW OF AGENCY RULEMAKING.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">DRG Prospective Payment Rate Methodology</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 1886(d)(6) (42 U.S.C. 1395ww(d)(6)) is amended by striking “<quotedText>September 1</quotedText>” and inserting “<quotedText>August 1</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Federal Register, publication.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395ww">42 USC 1395ww note</ref>.</p></sidenote> <heading><inline class="smallCaps">Transition rule for fiscal year 1998</inline>.—</heading><content>With respect to the publication in the Federal Register of the DRG prospective payment rate methodology under such section for fiscal year 1998, the term “60 days” in section 801(a)(3)(A) and section 802(a) of title 5, United States Code, is deemed to be a reference to “30 days”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Hospital Payment Updates</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Section 1886(e) (42 U.S.C. 1395ww(e) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in paragraph (5)(A) by striking “<quotedText>May 1</quotedText>” and inserting “<quotedText>April 1</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in paragraph (5)(B) by striking “<quotedText>September 1</quotedText>” and inserting “<quotedText>August 1</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Federal Register, publication.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395ww">42 USC 1395ww note</ref>.</p></sidenote> <heading><inline class="smallCaps">Transition rule for fiscal year 1998</inline>.—</heading><content>With respect to the publication in the Federal Register of the appropriate change factor for inpatient hospital services for discharges in fiscal year 1998 under section 1886(e)(5)(B) (42 U.S.C. 1395ww(e)(5)(B)), the term “60 days” in section 801(a)(3)(A) and section 802(a) of title 5, United States Code, is deemed to be a reference to “30 days”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Applications for Geographic Reclassification</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 1886(d)(10)(C) (42 U.S.C. 1395ww(d)(10)(C)) is amended in clause (ii), by striking “<quotedText>the first day of the preceding fiscal year.</quotedText>” and inserting “<quotedText>the first day of the 13-month period ending on September 30 of the preceding fiscal year.</quotedText>”</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Special rule for applications received in fiscal year 1997</inline>.—</heading><content>In the case of an application for a change in geographic classification under such section for fiscal year 1999, the Secretary of Health and Human Services shall shorten the deadlines under such section so as to permit completion of a final decision by the Secretary by June 15, 1998.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Physician Fee Schedule</inline>.—</heading><content>Section 1848(b)(1) (42 U.S.C. 1395w–4(b)(1)) is amended by striking “<quotedText>Before January 1 of each year beginning with 1992</quotedText>” and inserting “<quotedText>Before November 1 of the preceding year, for each year beginning with 1998</quotedText>”.<page identifier="/us/stat/111/489">111 STAT. 489</page></content> </subsection> </section> </chapter> </subtitle> <subtitle> <num value="H">Subtitle H—</num><heading>Medicaid</heading> <chapter> <num value="1">CHAPTER 1—</num><heading>MANAGED CARE</heading> <section> <num value="4701">SEC. 4701.</num> <heading>STATE OPTION OF USING MANAGED CARE; CHANGE IN TERMINOLOGY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Use of Managed Care Generally</inline>.—</heading><content>Title XIX is amended by redesignating section 1932 as section 1933 and by inserting<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396v">42 USC 1396v</ref>.</p></sidenote> after section 1931 the following new section: <quotedContent> <level> <heading class="centered">“<inline class="smallCaps">provisions relating to managed care</inline></heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396u–2">42 USC 1396u–2</ref>.</p></sidenote> <section> <num value="1932">“<inline class="smallCaps">Sec</inline>. 1932.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">State Option to Use Managed Care</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Use of medicaid managed care organizations and primary care case managers</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Subject to the succeeding provisions of this section, and notwithstanding paragraph (1), (10)(B), or (23)(A) of section 1902(a), a State—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <chapeau>may require an individual who is eligible for medical assistance under the State plan under this title to enroll with a managed care entity as a condition of receiving such assistance (and, with respect to assistance furnished by or under arrangements with such entity, to receive such assistance through the entity), if—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the entity and the contract with the State meet the applicable requirements of this section and section 1903(m) or section 1905(t), and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the requirements described in the succeeding paragraphs of this subsection are met; and</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>may restrict the number of provider agreements with managed care entities under the State plan if such restriction does not substantially impair access to services.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Definition of managed care entity</inline>.—</heading><chapeau>In this section, the term ‘managed care entity’ means—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>a medicaid managed care organization, as defined in section 1903(m)(1)(A), that provides or arranges for services for enrollees under a contract pursuant to section 1903(m); and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>a primary care case manager, as defined in section 1905(t)(2).</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Special rules</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Exemption of certain children with special needs</inline>.—</heading><chapeau>A State may not require under paragraph (1) the enrollment in a managed care entity of an individual under 19 years of age who—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>is eligible for supplemental security income under title XVI;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>is described in section 501(a)(1)(D);</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>is described in section 1902(e)(3);</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>is receiving foster care or adoption assistance under part E of title IV; or</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>is in foster care or otherwise in an out-of-home placement.<page identifier="/us/stat/111/490">111 STAT. 490</page></content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Exemption of medicare beneficiaries</inline>.—</heading><content>A State may not require under paragraph (1) the enrollment in a managed care entity of an individual who is a qualified medicare beneficiary (as defined in section 1905(p)(1)) or an individual otherwise eligible for benefits under title XVIII.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Indian enrollment</inline>.—</heading><chapeau>A State may not require under paragraph (1) the enrollment in a managed care entity of an individual who is an Indian (as defined in section 4(c) of the Indian Health Care Improvement Act of 1976 (25 U.S.C. 1603(c)) unless the entity is one of the following (and only if such entity is participating under the plan):</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>The Indian Health Service.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>An Indian health program operated by an Indian tribe or tribal organization pursuant to a contract, grant, cooperative agreement, or compact with the Indian Health Service pursuant to the Indian Self-Determination Act (25 U.S.C. 450 et seq.).</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>An urban Indian health program operated by an urban Indian organization pursuant to a grant or contract with the Indian Health Service pursuant to title V of the Indian Health Care Improvement Act (25 U.S.C. 1601 et seq.).</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Choice of coverage</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>A State must permit an individual to choose a managed care entity from not less than two such entities that meet the applicable requirements of this section, and of section 1903(m) or section 1905(t).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">State option</inline>.—</heading><chapeau>At the option of the State, a State shall be considered to meet the requirements of subparagraph (A) in the case of an individual residing in a rural area, if the State requires the individual to enroll with a managed care entity if such entity—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>permits the individual to receive such assistance through not less than two physicians or case managers (to the extent that at least two physicians or case managers are available to provide such assistance in the area), and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>permits the individual to obtain such assistance from any other provider in appropriate circumstances (as established by the State under regulations of the Secretary).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Treatment of certain county-operated health insuring organizations</inline>.—</heading><chapeau>A State shall be considered to meet the requirement of subparagraph (A) if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <chapeau>the managed care entity in which the individual is enrolled is a health-insuring organization which—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>first became operational prior to January 1, 1986, or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>is described in section 9517(c)(3) of the Omnibus Budget Reconciliation Act of 1985 (as added by section 4734(2) of the Omnibus Budget Reconciliation Act of 1990), and</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the individual is given a choice between at least two providers within such entity.<page identifier="/us/stat/111/491">111 STAT. 491</page></content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Process for enrollment and termination and change of enrollment</inline>.—</heading><chapeau>As conditions under paragraph (1)(A)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The State, enrollment broker (if any), and managed care entity shall permit an individual eligible for medical assistance under the State plan under this title who is enrolled with the entity under this title to terminate (or change) such enrollment—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>for cause at any time (consistent with section 1903(m)(2)(A)(vi)), and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>without cause—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>during the 90-day period beginning on the date the individual receives notice of such enrollment, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>at least every 12 months thereafter.</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Notice of termination rights</inline>.—</heading><content>The State shall provide for notice to each such individual of the opportunity to terminate (or change) enrollment under such conditions. Such notice shall be provided at least 60 days before each annual enrollment opportunity described in subparagraph (A)(ii)(H).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Enrollment priorities</inline>.—</heading><content>In carrying out paragraph (1)(A), the State shall establish a method for establishing enrollment priorities in the case of a managed care entity that does not have sufficient capacity to enroll all such individuals seeking enrollment under which individuals already enrolled with the entity are given priority in continuing enrollment with the entity.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Default enrollment process</inline>.—</heading><chapeau>In carrying out paragraph (1)(A), the State shall establish a default enrollment process—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>under which any such individual who does not enroll with a managed care entity during the enrollment period specified by the State shall be enrolled by the State with such an entity which has not been found to be out of substantial compliance with the applicable requirements of this section and of section 1903(m) or section 1905(t); and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>that takes into consideration—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>maintaining existing provider-individual relationships or relationships with providers that have traditionally served beneficiaries under this title; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>if maintaining such provider relationships is not possible, the equitable distribution of such individuals among qualified managed care entities available to enroll such individuals, consistent with the enrollment capacities of the entities.</content></subclause> </clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Provision of information</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Information in easily understood form</inline>.—</heading><content>Each State, enrollment broker, or managed care entity shall provide all enrollment notices and informational and instructional materials relating to such an entity under this title in a manner and form which may be easily understood by enrollees and potential enrollees of the entity who are eligible for medical assistance under the State plan under this title.<page identifier="/us/stat/111/492">111 STAT. 492</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Information to enrollees and potential enrollees</inline>.—</heading><chapeau>Each managed care entity that is a medicaid managed care organization shall, upon request, make available to enrollees and potential enrollees in the organization’s service area information concerning the following:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Providers</inline>.—</heading><content>The identity, locations, qualifications, and availability of health care providers that participate with the organization.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Enrollee rights and responsibilities</inline>.—</heading><content>The rights and responsibilities of enrollees.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Grievance and appeal procedures</inline>.—</heading><content>The procedures available to an enrollee and a health care provider to challenge or appeal the failure of the organization to cover a service.</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <heading><inline class="smallCaps">Information on covered items and services</inline>.—</heading><content>All items and services that are available to enrollees under the contract between the State and the organization that are covered either directly or through a method of referral and prior authorization. Each managed care entity that is a primary care case manager shall, upon request, make available to enrollees and potential enrollees in the organization’s service area the information described in clause (iii).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Comparative information</inline>.—</heading><chapeau>A State that requires individuals to enroll with managed care entities under paragraph (1)(A) shall annually (and upon request) provide, directly or through the managed care entity, to such individuals a list identifying the managed care entities that are (or will be) available and information (presented in a comparative, chart-like form) relating to the following for each such entity offered:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Benefits and cost-sharing</inline>.—</heading><content>The benefits covered and cost-sharing imposed by the entity.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Service area</inline>.—</heading><content>The service area of the entity.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Quality and performance</inline>.—</heading><content>To the extent available, quality and performance indicators for the benefits under the entity.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Information on benefits not covered under managed care arrangement</inline>.—</heading><content>A State, directly or through managed care entities, shall, on or before an individual enrolls with such an entity under this title, inform the enrollee in a written and prominent manner of any benefits to which the enrollee may be entitled to under this title but which are not made available to the enrollee through the entity. Such information shall include information on where and how such enrollees may access benefits not made available to the enrollee through the entity.”.</content></subparagraph> </paragraph> </subsection> </section> </level> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Change in Terminology</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Section 1903(m)(1)(A) (42 U.S.C. 1396b(m)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>The term</quotedText>” and all that follows through “and—” and inserting “<quotedText>The term ‘medicaid managed care organization’ means a health maintenance organization, an eligible organization with a contract under section 1876 or a Medicare+Choice organization with a contract under part C of title XVIII, a provider sponsored organization, <page identifier="/us/stat/111/493">111 STAT. 493</page>or any other public or private organization, which meets the requirement of section 1902(w) and—</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by adding after and below clause (ii) the following: “An organization that is a qualified health maintenance organization (as defined in section 1310(d) of the Public Health Service Act) is deemed to meet the requirements of clauses (i) and (ii).”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conforming changes in terminology</inline>.—</heading><subparagraph class="inline"><num value="A">(A)</num> <chapeau>Each of the following provisions is amended by striking “<quotedText>health maintenance organization</quotedText>” and inserting “<quotedText>medicaid managed care organization</quotedText>”:</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>Section 1902(a)(23) (42 U.S.C. 1396a(a)(23)).</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>Section 1902(a)(57) (42 U.S.C. 1396a(a)(57)).</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>Section 1902(p)(2) (42 U.S.C. 1396a(p)(2)).</content></clause> <clause class="indent3 fontsize10"><num value="iv">(iv)</num> <content>Section 1902(w)(2)(E) (42 U.S.C. 1396a(w)(2)(E)).</content></clause> <clause class="indent3 fontsize10"><num value="v">(v)</num> <content>Section 1903(k) (42 U.S.C. 1396b(k)).</content></clause> <clause class="indent3 fontsize10"><num value="vi">(vi)</num> <content>In section 1903(m)(1)(B).</content></clause> <clause class="indent3 fontsize10"><num value="vii">(vii)</num> <content>In subparagraphs (A)(i) and (H)(i) of section 1903(m)(2) (42 U.S.C. 1396b(m)(2)).</content></clause> <clause class="indent3 fontsize10"><num value="viii">(viii)</num> <content>Section 1903(m)(4)(A) (42 U.S.C. 1396b(m)(4)(A)), the first place it appears.</content></clause> <clause class="indent3 fontsize10"><num value="ic">(ix)</num> <content>Section 1925(b)(4)(D)(iv) (42 U.S.C. 1396r–6(b)(4)(D)(iv)).</content></clause> <clause class="indent3 fontsize10"><num value="x">(x)</num> <content>Section 1927(j)(1) (42 U.S.C. 1396r–8(j)(1)) is amended by striking “<quotedText>***Health Maintenance Organizations, including those organizations</quotedText>” and inserting “<quotedText>health maintenance organizations, including medicaid managed care organizations</quotedText>”.</content></clause> </subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B)</num> <content>Section 1903(m)(2)(H) (42 U.S.C. 1396b(m)(2)(H)) is amended, in the matter following clause (iii), by striking “<quotedText>health maintenance</quotedText>”.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C)</num> <content>Clause (viii) of section 1903(w)(7)(A) (42 U.S.C. 1396b(w)(7)(A)) is amended to read as follows: <quotedContent> <clause class="indent3 fontsize10"><num value="viii">“(viii)</num> <content>Services of a medicaid managed care organization with a contract under section 1903(m).”.</content></clause> </quotedContent> </content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="D">(D)</num> <chapeau>Section 1925(b)(4)(D)(iv) (42 U.S.C. 1396r–6(b)(4)(D)(iv)) is amended—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>in the heading, by striking “<quotedText><inline class="smallCaps">hmo</inline></quotedText>” and inserting “<quotedText><inline class="smallCaps">medicaid managed care organization</inline></quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by inserting “<quotedText>and the applicable requirements of section 1932</quotedText>” before the period at the end.</content></clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Compliance of Contract With New Requirements</inline>.—</heading><chapeau>Section 1903(m)(2)(A) (42 U.S.C. 1396b(m)(2)(A)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>and</quotedText>” at the end of clause (x),</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking the period at the end of clause (xi) and inserting “<quotedText>; and</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by adding at the end the following: <quotedContent> <clause class="indent3 fontsize10"><num value="xi">“(xi)</num> <content>such contract, and the entity complies with the applicable requirements of section 1932.”.</content></clause> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Conforming Amendments to Freedom-of-Choice and Termination of Enrollment Requirements</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Section 1902(a)(23) (42 U.S.C. 1396a(a)(23)), as amended by section 4724(d), is amended by striking “<quotedText>and in section 1915</quotedText>” and inserting “<quotedText>, in section 1915, and in section 1932(a)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>Section 1903(m)(2) (42 U.S.C. 1396b(m)(2)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <chapeau>in paragraph (A)(vi)—<page identifier="/us/stat/111/494">111 STAT. 494</page></chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by striking “<quotedText>except as provided under subparagraph (F),</quotedText>”,</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking “<quotedText>without cause</quotedText>” and all that follows through “for such termination” and inserting “<quotedText>in accordance with section 1932(a)(4);</quotedText>”,</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>by inserting “<quotedText>in accordance with such section</quotedText>” after “provides for notification”; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking subparagraph (F).</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="4702">SEC. 4702.</num> <heading>PRIMARY CARE CASE MANAGEMENT SERVICES AS STATE OPTION WITHOUT NEED FOR WAIVER.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 1905 (42 U.S.C. 1396d) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in subsection (a)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>and</quotedText>” at the end of paragraph (24);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by redesignating paragraph (25) as paragraph (26) and by striking the period at the end of such paragraph and inserting a comma; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by inserting after paragraph (24) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="25">“(25)</num> <content>primary care case management services (as defined in subsection (t)); and”; and</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="t">“(t)</num><paragraph class="inline"><num value="1">(1)</num> <content>The term ‘primary care case management services’ means case-management related services (including locating, coordinating, and monitoring of health care services) provided by a primary care case manager under a primary care case management contract.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2)</num> <chapeau>The term ‘primary care case manager’ means any of the following that provides services of the type described in paragraph (1) under a contract referred to in such paragraph:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>A physician, a physician group practice, or an entity employing or having other arrangements with physicians to provide such services.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>At State option—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>a nurse practitioner (as described in section 1905(a)(21));</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>a certified nurse-midwife (as defined in section 1861(gg)); or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>a physician assistant (as defined in section 1861(aa)(5)).</content></clause> </subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3)</num> <chapeau>The term ‘primary care case management contract’ means a contract between a primary care case manager and a State under which the manager undertakes to locate, coordinate, and monitor covered primary care (and such other covered services as may be specified under the contract) to all individuals enrolled with the manager, and which—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>provides for reasonable and adequate hours of operation, including 24-hour availability of information, referral, and treatment with respect to medical emergencies;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>restricts enrollment to individuals residing sufficiently near a service delivery site of the manager to be able to reach that site within a reasonable time using available and affordable modes of transportation;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>provides for arrangements with, or referrals to, sufficient numbers of physicians and other appropriate health care professionals to ensure that services under the contract can be furnished to enrollees promptly and without compromise to quality of care;<page identifier="/us/stat/111/495">111 STAT. 495</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>prohibits discrimination on the basis of health status or requirements for health care services in enrollment, disenrollment, or reenrollment of individuals eligible for medical assistance under this title;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>provides for a right for an enrollee to terminate enrollment in accordance with section 1932(a)(4); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>complies with the other applicable provisions of section 1932.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="4">“(4)</num> <content>For purposes of this subsection, the term ‘primary care’ includes all health care services customarily provided in accordance with State licensure and certification laws and regulations, and all laboratory services customarily provided by or through, a general practitioner, family medicine physician, internal medicine physician, obstetrician/gynecologist, or pediatrician.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Application of reenrollment provisions to pccms</inline>.—</heading><chapeau>Section 1903(m)(2)(H) (42 U.S.C. 1396b(m)(2)(H)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in clause (i), by inserting before the comma the following: “or with a primary care case manager with a contract described in section 1905(t)(3)”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by inserting before the period at the end the following: “or with the manager described in such clause if the manager continues to have a contract described in section 1905(t)(3) with the State”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conforming cross-reference</inline>.—</heading><content>Section 1902(j) (42 U.S.C. 1396a(j)) is amended by striking “<quotedText>paragraphs (1) through (25)</quotedText>” and inserting “<quotedText>a numbered paragraph of</quotedText>”.</content></paragraph> </subsection> </section> <section> <num value="4703">SEC. 4703.</num> <heading>ELIMINATION OF 75:25 RESTRICTION ON RISK CONTRACTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 1903(m)(2)(A) (42 U.S.C. 1396b(m)(2)(A)) is amended by striking clause (ii).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>Section 1903(m)(2) (42 U.S.C. 1396b(m)(2)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking subparagraphs (C), (D), and (E); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in subparagraph (G), by striking “<quotedText>clauses (i) and (ii)</quotedText>” and inserting “<quotedText>clause (i)</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Section 1925(b)(4)(D)(iv) (42 U.S.C. 1396r–6(b)(4)(D)(iv)) is amended by striking “<quotedText>less than 50 percent</quotedText>” and all that follows up to the period at the end.</content></paragraph> </subsection> </section> <section> <num value="4704">SEC. 4704.</num> <heading>INCREASED BENEFICIARY PROTECTIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 1932, as added by section 4701(a), is amended by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Beneficiary Protections</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Specification of benefits</inline>.—</heading><content>Each contract with a managed care entity under section 1903(m) or under section 1905(t)(3) shall specify the benefits the provision (or arrangement) for which the entity is responsible.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Assuring coverage to emergency services</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Each contract with a medicaid managed care organization under section 1903(m) and each contract with a primary care case manager under section 1905(t)(3) shall require the organization or manager—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>to provide coverage for emergency services (as defined in subparagraph (B)) without regard to prior <page identifier="/us/stat/111/496">111 STAT. 496</page>authorization or the emergency care provider’s contractual relationship with the organization or manager, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>to comply with guidelines established under section 1852(d)(2) (respecting coordination of post-stabilization care) in the same manner as such guidelines apply to Medicare+Choice plans offered under part C of title XVIII.</content></clause> <continuation class="indent0 fontsize10"><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote>The requirement under clause (ii) shall first apply 30 days after the date of promulgation of the guidelines referred to in such clause.</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Emergency services defined</inline>.—</heading><chapeau>In subparagraph (A)(i), the term ‘emergency services’ means, with respect to an individual enrolled with an organization, covered inpatient and outpatient services that—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>are furnished by a provider that is qualified to furnish such services under this title, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>are needed to evaluate or stabilize an emergency medical condition (as defined in subparagraph (C)).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Emergency medical condition defined</inline>.—</heading><chapeau>In subparagraph (B)(ii), the term ‘emergency medical condition’ means a medical condition manifesting itself by acute symptoms of sufficient severity (including severe pain) such that a prudent layperson, who possesses an average knowledge of health and medicine, could reasonably expect the absence of immediate medical attention to result in—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>placing the health of the individual (or, with respect to a pregnant woman, the health of the woman or her unborn child) in serious jeopardy,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>serious impairment to bodily functions, or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>serious dysfunction of any bodily organ or part.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Protection of enrollee-provider communications</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subject to subparagraphs (B) and (C), under a contract under section 1903(m) a medicaid managed care organization (in relation to an individual enrolled under the contract) shall not prohibit or otherwise restrict a covered health care professional (as defined in subparagraph (D)) from advising such an individual who is a patient of the professional about the health status of the individual or medical care or treatment for the individual’s condition or disease, regardless of whether benefits for such care or treatment are provided under the contract, if the professional is acting within the lawful scope of practice.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Construction</inline>.—</heading><chapeau>Subparagraph (A) shall not be construed as requiring a medicaid managed care organization to provide, reimburse for, or provide coverage of, a counseling or referral service if the organization—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>objects to the provision of such service on moral or religious grounds; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>in the manner and through the written instrumentalities such organization deems appropriate, makes available information on its policies regarding such service to prospective enrollees before or during <page identifier="/us/stat/111/497">111 STAT. 497</page>enrollment and to enrollees within 90 days after the date that the organization adopts a change in policy regarding such a counseling or referral service.</content></clause> <continuation class="indent0 fontsize10">Nothing in this subparagraph shall be construed to affect disclosure requirements under State law or under the Employee Retirement Income Security Act of 1974.</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Health care professional defined</inline>.—</heading><content>For purposes of this paragraph, the term ‘health care professional’ means a physician (as defined in section 1861(r)) or other health care professional if coverage for the professional’s services is provided under the contract referred to in subparagraph (A) for the services of the professional. Such term includes a podiatrist, optometrist, chiropractor, psychologist, dentist, physician assistant, physical or occupational therapist and therapy assistant, speech-language pathologist, audiologist, registered or licensed practical nurse (including nurse practitioner, clinical nurse specialist, certified registered nurse anesthetist, and certified nurse-midwife), licensed certified social worker, registered respiratory therapist, and certified respiratory therapy technician.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Grievance procedures</inline>.—</heading><content>Each medicaid managed care organization shall establish an internal grievance procedure under which an enrollee who is eligible for medical assistance under the State plan under this title, or a provider on behalf of such an enrollee, may challenge the denial of coverage of or payment for such assistance.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Demonstration of adequate capacity and services</inline>.—</heading><chapeau>Each medicaid managed care organization shall provide the State and the Secretary with adequate assurances (in a time and manner determined by the Secretary) that the organization, with respect to a service area, has the capacity to serve the expected enrollment in such service area, including assurances that the organization—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>offers an appropriate range of services and access to preventive and primary care services for the population expected to be enrolled in such service area, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>maintains a sufficient number, mix, and geographic distribution of providers of services.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Protecting enrollees against liability for payment</inline>.—</heading><chapeau>Each medicaid managed care organization shall provide that an individual eligible for medical assistance under the State plan under this title who is enrolled with the organization may not be held liable—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>for the debts of the organization, in the event of the organization’s insolvency,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>for services provided to the individual—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>in the event of the organization failing to receive payment from the State for such services; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>in the event of a health care provider with a contractual, referral, or other arrangement with the organization failing to receive payment from the State or the organization for such services, or</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>for payments to a provider that furnishes covered services under a contractual, referral, or other arrangement with the organization in excess of the amount that would <page identifier="/us/stat/111/498">111 STAT. 498</page>be owed by the individual if the organization had directly provided the services.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Antidiscrimination</inline>.—</heading><content>A medicaid managed care organization shall not discriminate with respect to participation, reimbursement, or indemnification as to any provider who is acting within the scope of the provider’s license or certification under applicable State law, solely on the basis of such license or certification. This paragraph shall not be construed to prohibit an organization from including providers only to the extent necessary to meet the needs of the organization’s enrollees or from establishing any measure designed to maintain quality and control costs consistent with the responsibilities of the organization.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <heading><inline class="smallCaps">Compliance with certain maternity and mental health requirements</inline>.—</heading><content>Each medicaid managed care organization shall comply with the requirements of subpart 2 of part A of title XXVII of the Public Health Service Act insofar as such requirements apply and are effective with respect to a health insurance issuer that offers group health insurance coverage.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Protection of Enrollees Against Balance Billing Through Subcontractors</inline>.—</heading><content>Section 1128B(d)(1) (42 U.S.C. 1320a–7b(d)(1)) is amended by inserting “<quotedText>(or, in the case of services provided to an individual enrolled with a medicaid managed care organization under title XIX under a contract under section 1903(m) or under a contractual, referral, or other arrangement under such contract, at a rate in excess of the rate permitted under such contract)</quotedText>” before the comma at the end.</content> </subsection> </section> <section> <num value="4705">SEC. 4705.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396u–2">42 USC 1396u–2</ref>.</p></sidenote> <heading>QUALITY ASSURANCE STANDARDS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 1932 is further amended by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Quality Assurance Standards</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Quality assessment and improvement strategy</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>If a State provides for contracts with medicaid managed care organizations under section 1903(m), the State shall develop and implement a quality assessment and improvement strategy consistent with this paragraph. Such strategy shall include the following:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Access standards</inline>.—</heading><content>Standards for access to care so that covered services are available within reasonable timeframes and in a manner that ensures continuity of care and adequate primary care and specialized services capacity.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Other measures</inline>.—</heading><content>Examination of other aspects of care and service directly related to the improvement of quality of care (including grievance procedures and marketing and information standards).</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Monitoring procedures</inline>.—</heading><content>Procedures for monitoring and evaluating the quality and appropriateness of care and services to enrollees that reflect the full spectrum of populations enrolled under the contract and that includes requirements for provision of quality assurance data to the State using the data and information set that the Secretary has specified for use under part C of title XVIII or such alternative <page identifier="/us/stat/111/499">111 STAT. 499</page>data as the Secretary approves, in consultation with the State.</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <heading><inline class="smallCaps">Periodic review</inline>.—</heading><content>Regular, periodic examinations of the scope and content of the strategy.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Standards</inline>.—</heading><content>The strategy developed under subparagraph (A) shall be consistent with standards that the Secretary first establishes within 1 year after the date of the enactment of this section. Such standards shall not preempt any State standards that are more stringent than such standards. Guidelines relating to quality assurance<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> that are applied under section 1915(b)(1) shall apply under this subsection until the effective date of standards for quality assurance established under this subparagraph.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Monitoring</inline>.—</heading><content>The Secretary shall monitor the development and implementation of strategies under subparagraph (A).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Consultation</inline>.—</heading><content>The Secretary shall conduct activities under subparagraphs (B) and (C) in consultation with the States.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">External independent review of managed care activities</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Review of contracts</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Each contract under section 1903(m) with a medicaid managed care organization shall provide for an annual (as appropriate) external independent review conducted by a qualified independent entity of the quality outcomes and timeliness of, and access to, the items and services for which the organization is responsible under the contract. The requirement for such a review shall not apply until after the date that the Secretary establishes the identification method described in clause (ii).</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Qualifications of reviewer</inline>.—</heading><content>The Secretary, in consultation with the States, shall establish a method for the identification of entities that are qualified to conduct reviews under clause (i).</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Use of protocols</inline>.—</heading><content>The Secretary, in coordination with the National Governors’ Association, shall contract with an independent quality review organization (such as the National Committee for Quality Assurance) to develop the protocols to be used in external independent reviews conducted under this paragraph on and after January 1, 1999.</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <heading><inline class="smallCaps">Availability of results</inline>.—</heading><content>The results of each external independent review conducted under this subparagraph shall be available to participating health care providers, enrollees, and potential enrollees of the organization, except that the results may not be made available in a manner that discloses the identity of any individual patient.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Nonduplication of accreditation</inline>.—</heading><content>A State may provide that, in the case of a medicaid managed care organization that is accredited by a private independent entity (such as those described in section 1852(e)(4)) or that has an external review conducted under section 1852(e)(3), the external review activities conducted under subparagraph (A) with respect to the organization shall <page identifier="/us/stat/111/500">111 STAT. 500</page>not be duplicative of review activities conducted as part of the accreditation process or the external review conducted under such section.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Deemed compliance for medicare managed care organizations</inline>.—</heading><content>At the option of a State, the requirements of subparagraph (A) shall not apply with respect to a medicaid managed care organization if the organization is an eligible organization with a contract in effect under section 1876 or a Medicare+Choice organization with a contract in effect under C of title XVIII and the organization has had a contract in effect under section 1903(m) at least during the previous 2-year period.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Increased FFP for External Quality Review Organizations</inline>.—</heading><chapeau>Section 1903(a)(3)(C) (42 U.S.C. 1396b(a)(3)(C)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by inserting “<quotedText>(i)</quotedText>” after “(C)”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following new clause: <quotedContent> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>75 percent of the sums expended with respect to costs incurred during such quarter (as found necessary by the Secretary for the proper and efficient administration of the State plan) as are attributable to the performance of independent external reviews conducted under section 1932(c)(2); and”.</content></clause> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396u–2">42 USC 1396u–2 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Studies and Reports</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">GAO study and report on quality assurance and accreditation standards</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">Study</inline>.—</heading><chapeau>The Comptroller General of the United States shall conduct a study and analysis of the Quality assurance programs and accreditation standards applicable to managed care entities operating in the private sector, or to such entities that operate under contracts under the medicare program under title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.). Such study shall determine—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>if such programs and standards include consideration of the accessibility and quality of the health care items and services delivered under such contracts to low-income individuals; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>the appropriateness of applying such programs and standards to medicaid managed care organizations under section 1932(c) of such Act.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Report</inline>.—</heading><content>The Comptroller General shall submit a report to the Committee on Commerce of the House of Representatives and the Committee on Finance of the Senate on the study conducted under subparagraph (A).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Study and report on services provided to individuals with special health care needs</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">Study</inline>.—</heading><content>The Secretary of Health and Human Services, in consultation with States, managed care organizations, the National Academy of State Health Policy, representatives of beneficiaries with special health care needs, experts in specialized health care, and others, shall conduct a study concerning safeguards (if any) that may be needed to ensure that the health care needs of individuals with special health care needs and chronic conditions who are enrolled with medicaid managed care organizations are adequately met.<page identifier="/us/stat/111/501">111 STAT. 501</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than 2 years after the date of the enactment of this Act, the Secretary shall submit to Committees described in paragraph (1)(B) a report on such study.</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="4706">SEC. 4706.</num> <heading>SOLVENCY STANDARDS.</heading> <chapeau>Section 1903(m)(1) (42 U.S.C. 1396b(m)(1)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subparagraph (A)(ii), by inserting “<quotedText>, meets the requirements of subparagraph (C)(i) (if applicable),</quotedText>” after “provision is satisfactory to the State”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num><clause class="inline"><num value="i">(i)</num> <content>Subject to clause (ii), a provision meets the requirements of this subparagraph for an organization if the organization meets solvency standards established by the State for private health maintenance organizations or is licensed or certified by the State as a risk-bearing entity.</content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii)</num> <chapeau>Clause (i) shall not apply to an organization if—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the organization is not responsible for the provision (directly or through arrangements with providers of services) of inpatient hospital services and physicians’ services;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the organization is a public entity;</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>the solvency of the organization is guaranteed by the State; or</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>the organization is (or is controlled by) one or more Federally-qualified health centers and meets solvency standards established by the State for such an organization.</content></subclause> <continuation class="indent0 fontsize10">For purposes of subclause (IV), the term ‘control’ means the possession, whether direct or indirect, of the power to direct or cause the direction of the management and policies of the organization through membership, board representation, or an ownership interest equal to or greater than 50.1 percent.”.</continuation> </clause> </subparagraph> </quotedContent> </content></paragraph> </section> <section> <num value="4707">SEC. 4707.</num> <heading>PROTECTIONS AGAINST FRAUD AND ABUSE.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396u–2">42 USC 1396u–2</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 1932 (42 U.S.C. 1396v) is further amended by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Protections Against Fraud and Abuse</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Prohibiting affiliations with individuals debarred by federal agencies</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>A managed care entity may not knowingly—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>have a person described in subparagraph (C) as a director, officer, partner, or person with beneficial ownership of more than 5 percent of the entity’s equity, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>have an employment, consulting, or other agreement with a person described in such subparagraph for the provision of items and services that are significant and material to the entity’s obligations under its contract with the State.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Effect of noncompliance</inline>.—</heading><chapeau>If a State finds that a managed care entity is not in compliance with clause (i) or (ii) of subparagraph (A), the State—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>shall notify the Secretary of such noncompliance;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>may continue an existing agreement with the entity unless the Secretary (in consultation with the Inspector General of the Department of Health and Human Services) directs otherwise; and<page identifier="/us/stat/111/502">111 STAT. 502</page></content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>may not renew or otherwise extend the duration of an existing agreement with the entity unless the Secretary (in consultation with the Inspector General of the Department of Health and Human Services) provides to the State and to Congress a written statement describing compelling reasons that exist for renewing or extending the agreement.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Persons described</inline>.—</heading><chapeau>A person is described in this subparagraph if such person—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>is debarred, suspended, or otherwise excluded from participating in procurement activities under the Federal Acquisition Regulation or from participating in nonprocurement activities under regulations issued pursuant to Executive Order No. 12549 or under guidelines implementing such order; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>is an affiliate (as defined in such Act) of a person described in clause (i).</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Restrictions on marketing</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Distribution of materials</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>A managed care entity, with respect to activities under this title, may not distribute directly or through any agent or independent contractor marketing materials within any State—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>without the prior approval of the State, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>that contain false or materially misleading information.</content></subclause> <continuation class="indent0 fontsize10">The requirement of subclause (I) shall not apply with respect to a State until such date as the Secretary specifies in consultation with such State.</continuation> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Consultation in review of market materials</inline>.—</heading><content>In the process of reviewing and approving such materials, the State shall provide for consultation with a medical care advisory committee.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Service market</inline>.—</heading><content>A managed care entity shall distribute marketing materials to the entire service area of such entity covered under the contract under section 1903(m) or section 1903(t)(3).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Prohibition of tie-ins</inline>.—</heading><content>A managed care entity, or any agency of such entity, may not seek to influence an individual’s enrollment with the entity in conjunction with the sale of any other insurance.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Prohibiting marketing fraud</inline>.—</heading><content>Each managed care entity shall comply with such procedures and conditions as the Secretary prescribes in order to ensure that, before an individual is enrolled with the entity, the individual is provided accurate oral and written information sufficient to make an informed decision whether or not to enroll.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Prohibition of ‘cold-call’ marketing</inline>.—</heading><content>Each managed care entity shall not, directly or indirectly, conduct door-to-door, telephonic, or other ‘cold-call’ marketing of enrollment under this title.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">State conflict-of-interest safeguards in medicaid risk contracting</inline>.—</heading><content>A medicaid managed care organization may not enter into a contract with any State under section <page identifier="/us/stat/111/503">111 STAT. 503</page>1903(m) unless the State has in effect conflict-of-interest safeguards with respect to officers and employees of the State with responsibilities relating to contracts with such organizations or to the default enrollment process described in subsection (a)(4)(C)(ii) that are at least as effective as the Federal safeguards provided under section 27 of the Office of Federal Procurement Policy Act (41 U.S.C. 423), against conflicts of interest that apply with respect to Federal procurement officials with comparable responsibilities with respect to such contracts.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Use of unique physician identifier for participating physicians</inline>.—</heading><content>Each medicaid managed care organization shall require each physician providing services to enrollees eligible for medical assistance under the State plan under this title to have a unique identifier in accordance with the system established under section 1173(b).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Sanctions for Noncompliance</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Use of intermediate sanctions by the state to enforce requirements</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>A State may not enter into or renew a contract under section 1903(m) unless the State has established intermediate sanctions, which may include any of the types described in paragraph (2), other than the termination of a contract with a medicaid managed care organization, which the State may impose against a medicaid managed care organization with such a contract, if the organization—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>fails substantially to provide medically necessary items and services that are required (under law or under such organization’s contract with the State) to be provided to an enrollee covered under the contract;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>imposes premiums or charges on enrollees in excess of the premiums or charges permitted under this title;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>acts to discriminate among enrollees on the basis of their health status or requirements for health care services, including expulsion or refusal to reenroll an individual, except as permitted by this title, or engaging in any practice that would reasonably be expected to have the effect of denying or discouraging enrollment with the organization by eligible individuals whose medical condition or history indicates a need for substantial future medical services;</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <chapeau>misrepresents or falsifies information that is furnished—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>to the Secretary or the State under this title; or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>to an enrollee, potential enrollee, or a health care provider under such title; or</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>fails to comply with the applicable requirements of section 1903(m)(2)(A)(x).</content></clause> <continuation class="indent0 fontsize10">The State may also impose such intermediate sanction against a managed care entity if the State determines that the entity distributed directly or through any agent or independent contractor marketing materials in violation of subsection (d)(2)(A)(i)(II).<page identifier="/us/stat/111/504">111 STAT. 504</page></continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Rule of construction</inline>.—</heading><content>Clause (i) of subparagraph (A) shall not apply to the provision of abortion services, except that a State may impose a sanction on any medicaid managed care organization that has a contract to provide abortion services if the organization does not provide such services as provided for under the contract.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Intermediate sanctions</inline>.—</heading><chapeau>The sanctions described in this paragraph are as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>Civil money penalties as follows:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>Except as provided in clause (ii), (iii), or (iv), not more than $25,000 for each determination under paragraph (1)(A).</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>With respect to a determination under clause (iii) or (iv)(I) of paragraph (1)(A), not more than $100,000 for each such determination.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>With respect to a determination under paragraph (1)(A)(ii), double the excess amount charged in violation of such subsection (and the excess amount charged shall be deducted from the penalty and returned to the individual concerned).</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>Subject to clause (ii), with respect to a determination under paragraph (1)(A)(iii), $15,000 for each individual not enrolled as a result of a practice described in such subsection.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>The appointment of temporary management—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>to oversee the operation of the medicaid managed care organization upon a finding by the State that there is continued egregious behavior by the organization or there is a substantial risk to the health of enrollees; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>to assure the health of the organization’s enrollees, if there is a need for temporary management while—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>there is an orderly termination or reorganization of the organization; or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>improvements are made to remedy the violations found under paragraph (1),</content></subclause> <continuation class="indent0 fontsize10">except that temporary management under this subparagraph may not be terminated until the State has determined that the medicaid managed care organization has the capability to ensure that the violations shall not recur.</continuation> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>Permitting individuals enrolled with the managed care entity to terminate enrollment without cause, and notifying such individuals of such right to terminate enrollment.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>Suspension or default of all enrollment of individuals under this title after the date the Secretary or the State notifies the entity of a determination of a violation of any requirement of section 1903(m) or this section.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>Suspension of payment to the entity under this title for individuals enrolled after the date the Secretary or State notifies the entity of such a determination and until the Secretary or State is satisfied that the basis for such determination has been corrected and is not likely to recur.<page identifier="/us/stat/111/505">111 STAT. 505</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Treatment of chronic substandard entities</inline>.—</heading><content>In the case of a medicaid managed care organization which has repeatedly failed to meet the requirements of section 1903(m) and this section, the State shall (regardless of what other sanctions are provided) impose the sanctions described in subparagraphs (B) and (C) of paragraph (2).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Authority to terminate contract</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In the case of a managed care entity which has failed to meet the requirements of this part or a contract under section 1903(m) or 1905(t)(3), the State shall have the authority to terminate such contract with the entity and to enroll such entity’s enrollees with other managed care entities (or to permit such enrollees to receive medical assistance under the State plan under this title other than through a managed care entity).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Availability of hearing prior to termination of contract</inline>.—</heading><content>A State may not terminate a contract with a managed care entity under subparagraph (A) unless the entity is provided with a hearing prior to the termination.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Notice and right to disenroll in cases of termination hearing</inline>.—</heading><chapeau>A State may—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>notify individuals enrolled with a managed care entity which is the subject of a hearing to terminate the entity’s contract with the State of the hearing, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>in the case of such an entity, permit such enrollees to disenroll immediately with the entity without cause.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Other protections for managed care entities against sanctions imposed by state</inline>.—</heading><content>Before imposing any sanction against a managed care entity other than termination of the entity’s contract, the State shall provide the entity with notice and such other due process protections as the State may provide, except that a State may not provide a managed care entity with a pre-termination hearing before imposing the sanction described in paragraph (2)(B).”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Limitation on Availability of FFP for Use of Enrollment Brokers</inline>.—</heading><content>Section 1903(b) (42 U.S.C. 1396b(b)) is amended by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <chapeau>Amounts expended by a State for the use an enrollment broker in marketing medicaid managed care organizations and other managed care entities to eligible individuals under this title shall be considered, for purposes of subsection (a)(7), to be necessary for the proper and efficient administration of the State plan but only if the following conditions are met with respect to the broker:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>The broker is independent of any such entity and of any health care providers (whether or not any such provider participates in the State plan under this title) that provide coverage of services in the same State in which the broker is conducting enrollment activities.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>No person who is an owner, employee, consultant, or has a contract with the broker either has any direct or indirect financial interest with such an entity or health care provider or has been excluded from participation in the program under this title or title XVIII or debarred by any Federal agency, or subject to a civil money penalty under this Act.”.<page identifier="/us/stat/111/506">111 STAT. 506</page></content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Application of Disclosure Requirements to Managed Care Entities</inline>.—</heading><content>Section 1124(a)(2)(A) (42 U.S.C. 1320a–3(a)(2)(A)) is amended by inserting “<quotedText>a managed care entity, as defined in section 1932(a)(1)(B),</quotedText>” after “renal disease facility,”.</content> </subsection> </section> <section> <num value="4708">SEC. 4708.</num> <heading>IMPROVED ADMINISTRATION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Change In Threshold Amount for Contracts Requiring Secretary’s Prior Approval</inline>.—</heading><content>Section 1903(m)(2)(A)(iii) (42 U.S.C. 1396b(m)(2)(A)(iii)) is amended by striking “<quotedText>$100,000</quotedText>” and inserting “<quotedText>$1,000,000 for 1998 and, for a subsequent year, the amount established under this clause for the previous year increased by the percentage increase in the consumer price index for all urban consumers over the previous year</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Permitting Same Copayments in Health Maintenance Organizations as in Fee-for-Service</inline>.—</heading><chapeau>Section 1916 (42 U.S.C. 1396o) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subsection (a)(2)(D), by striking “<quotedText>or services furnished</quotedText>” and all that follows through “enrolled,”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subsection (b)(2)(D), by striking “<quotedText>or (at the option</quotedText>” and all that follows through “enrolled,”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Assuring Timeliness of Provider Payments</inline>.—</heading><content>Section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396u–2">42 USC 1396u–2</ref>.</p></sidenote>1932 is further amended by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Timeliness of Payment</inline>.—</heading><content>A contract under section 1903(m) with a medicaid managed care organization shall provide that the organization shall make payment to health care providers for items and services which are subject to the contract and that are furnished to individuals eligible for medical assistance under the State plan under this title who are enrolled with the organization on a timely basis consistent with the claims payment procedures described in section 1902(a)(37)(A), unless the health care provider and the organization agree to an alternate payment schedule.”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Clarification of Application of FFP Denial Rules to Payments Made Pursuant to Managed Care Entities</inline>.—</heading><content>Section 1903(i) (42 U.S.C. 1396b(i)) is amended by adding at the end the following new sentence: “Paragraphs (1), (2), (16), (17), and (18) shall apply with respect to items or services furnished and amounts expended by or through a managed care entity (as defined in section 1932(a)(1)(B)) in the same manner as such paragraphs apply to items or services furnished and amounts expended directly by the State.”.</content> </subsection> </section> <section> <num value="4709">SEC. 4709.</num> <heading>6-MONTH GUARANTEED ELIGIBILITY FOR ALL INDIVIDUALS ENROLLED IN MANAGED CARE.</heading> <chapeau>Section 1902(e)(2) (42 U.S.C. 1396a(e)(2)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>who is enrolled</quotedText>” and all that follows through “section 1903(m)(2)(A)” and inserting “<quotedText>who is enrolled with a medicaid managed care organization (as defined in section 1903(m)(1)(A)), with a primary care case manager (as defined in section 1905(t)),</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting before the period “or by or through the case manager”.</content></paragraph> </section> <section> <num value="4710">SEC. 4710.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396b">42 USC 1396b note</ref>.</p></sidenote> <heading>EFFECTIVE DATES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">General Effective Date</inline>.—</heading><content>Except as otherwise provided in this chapter and section 4759, the amendments made by this chapter shall take effect on the date of the enactment of this Act and shall apply to contracts entered into or renewed on or after October 1, 1997.<page identifier="/us/stat/111/507">111 STAT. 507</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Specific Effective Dates</inline>.—</heading><chapeau>Subject to subsection (c) and section 4759—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">PCCM option</inline>.—</heading><content>The amendments made by section 4702 shall apply to primary care case management services furnished on or after October 1, 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">75:25 rule</inline>.—</heading><content>The amendments made by section 4703 apply to contracts under section 1903(m) of the Social Security Act (42 U.S.C. 1396b(m)) on and after June 20, 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Quality standards</inline>.—</heading><content>Section 1932(c)(1) of the Social Security Act, as added by section 4705(a), shall take effect on January 1, 1999.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Solvency standards</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendments made by section 4706 shall apply to contracts entered into or renewed on or after October 1, 1998.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Transition rule</inline>.—</heading><content>In the case of an organization that as of the date of the enactment of this Act has entered into a contract under section 1903(m) of the Social Security Act with a State for the provision of medical assistance under title XIX of such Act under which the organization assumes full financial risk and is receiving capitation payments, the amendment made by section 4706 shall not apply to such organization until 3 years after the date or the enactment of this Act.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <heading><inline class="smallCaps">Sanctions for noncompliance</inline>.—</heading><content>Section 1932(e) of the Social Security Act, as added by section 4707(a), shall apply to contracts entered into or renewed on or after April 1, 1998.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <heading><inline class="smallCaps">Limitation on ffp for enrollment brokers</inline>—</heading><content>The amendment made by section 4707(b) shall apply to amounts expended on or after October 1, 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <heading><inline class="smallCaps">6-month guaranteed eligibility</inline>.—</heading><content>The amendments made by section 4709 shall take effect on October 1, 1997.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Nonapplication to Waivers</inline>.—</heading><content>Nothing in this chapter (or the amendments made by this chapter) shall be construed as affecting the terms and conditions of any waiver, or the authority of the Secretary of Health and Human Services with respect to any such waiver, under section 1115 or 1915 of the Social Security Act (42 U.S.C. 1315, 1396n).</content> </subsection> </section> </chapter> <chapter> <num value="2">CHAPTER 2—</num><heading>FLEXIBILITY IN PAYMENT OF PROVIDERS</heading> <section> <num value="4711">SEC. 4711.</num> <heading>FLEXIBILITY IN PAYMENT METHODS FOR HOSPITAL, NURSING FACILITY, ICF/MR, AND HOME HEALTH SERVICES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Repeal of Boren Requirements</inline>.—</heading><chapeau>Section 1902(a)(13) (42 U.S.C. 1396a(a)(13)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking all that precedes subparagraph (D) and inserting the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="13">“(13)</num> <chapeau>provide—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>for a public process for determination of rates of payment under the plan for hospital services, nursing facility services, and services of intermediate care facilities for the mentally retarded under which—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>proposed rates, the methodologies underlying the establishment of such rates, and justifications for the proposed rates are published,</content></clause> <page identifier="/us/stat/111/508">111 STAT. 508</page> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>providers, beneficiaries and their representatives, and other concerned State residents are given a reasonable opportunity for review and comment on the proposed rates, methodologies, and justifications,</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>final rates, the methodologies underlying the establishment of such rates, and justifications for such final rates are published, and</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>in the case of hospitals, such rates take into account (in a manner consistent with section 1923) the situation of hospitals which serve a disproportionate number of low-income patients with special needs;”;</content></clause> </subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by redesignating subparagraphs (D) and (E) as subparagraphs (B) and (C), respectively;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>in subparagraph (B), as so redesignated, by adding “<quotedText>and</quotedText>” at the end;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>in subparagraph (C), as so redesignated, by striking “<quotedText>and</quotedText>” at the end; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>by striking subparagraph (F).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a note</ref>.</p></sidenote> <heading><inline class="smallCaps">Study and Report</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Study</inline>.—</heading><content>The Secretary of Health and Human Services shall study the effect on access to, and the quality of, services provided to beneficiaries of the rate-setting methods used by States pursuant to section 1902(a)(13)(A) of the Social Security Act (42 U.S.C. 1396a(a)(13)(A)), as amended by subsection (a).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than 4 years after the date of the enactment of this Act, the Secretary of Health and Human Services shall submit a report to the appropriate committees of Congress on the conclusions of the study conducted under paragraph (1), together with any recommendations for legislation as a result of such conclusions.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Section 1905(o)(3) (42 U.S.C. 1396d(o)(3)) is amended by striking “<quotedText>amount described in section 1902(a)(13)(D)</quotedText>” and inserting “<quotedText>amount determined in section 1902(a)(13)(B)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Section 1923 (42 U.S.C. 1396r–4) is amended, in subsections (a)(1) and (e)(i), by striking “<quotedText>1902(a)(13)(A)</quotedText>” each place it appears and inserting “<quotedText>1902(a)(13)(A)(iv)</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>This section shall take effect on the date of the enactment of this Act and the amendments made by subsections (a) and (c) shall apply to payment for items and services furnished on or after October 1, 1997.</content> </subsection> </section> <section> <num value="4712">SEC. 4712.</num> <heading>PAYMENT FOR CENTER AND CLINIC SERVICES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Phase-Out of Payment Based on Reasonable Costs</inline>.—</heading><content>Section 1902(a)(13)(C) (42 U.S.C. 1396a(a)(13)(C)), as redesignated by section 4711(a)(2), is amended by inserting “<quotedText>(or 95 percent for services furnished during fiscal year 2000, 90 percent for services furnished during fiscal year 2001, 85 percent for services furnished during fiscal year 2002, or 70 percent for services furnished during fiscal year 2003)</quotedText>” after “100 percent”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Transitional Supplemental Payment for Services Furnished Under Certain Managed Care Contracts</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Section 1902(a)(13)(C) (42 U.S.C. 1396a(a)(13)(C)), as so redesignated, is further amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by inserting “<quotedText>(i)</quotedText>” after “(C)”, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by inserting before the semicolon at the end the following: “and (ii) in carrying out clause (i) in the case <page identifier="/us/stat/111/509">111 STAT. 509</page>of services furnished by a Federally-qualified health center or a rural health clinic pursuant to a contract between the center and an organization under section 1903(m), for payment to the center or clinic at least quarterly by the State of a supplemental payment equal to the amount (if any) by which the amount determined under clause (i) exceeds the amount of the payments provided under such contract”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conforming amendment to managed care contract requirement</inline>.—</heading><content>Clause (ix) of section 1903(m)(2)(A) (42 U.S.C. 1396b(m)(2)(A)) is amended to read as follows: <quotedContent> <clause class="indent3 fontsize10"><num value="ix">“(ix)</num> <content>such contract provides, in the case of an entity that has entered into a contract for the provision of services with a Federally-qualified health center or a rural health clinic, that the entity shall provide payment that is not less than the level and amount of payment which the entity would make for the services if the services were furnished by a provider which is not a Federally-qualified health center or a rural health clinic;”.</content></clause> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendments made by this subsection<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a note</ref>.</p></sidenote> shall apply to services furnished on or after October 1, 1997.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">End of Transitional Payment Rules</inline>.—</heading><chapeau>Effective for services furnished on or after October 1, 2003—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>subparagraph (C) of section 1902(a)(13) (42 U.S.C. 1396a(a)(13)), as so redesignated, is repealed, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>clause (ix) of section 1903(m)(2)(A) (42 U.S.C. 1396b(m)(2)(A)) is repealed.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Flexibility in Coverage of Non-Freestanding Look-Alikes</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 1905(l)(2)(B)(iii) (42 U.S.C. 1396d(l)(2)(B)(iii)) is amended by inserting “<quotedText>including requirements of the Secretary that an entity may not be owned, controlled, or operated by another entity,</quotedText>” after “such a grant,”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendment made by paragraph<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a note</ref>.</p></sidenote> (1) shall apply to services furnished on or after the date of the enactment of this Act.</content></paragraph> </subsection> </section> <section> <num value="4713">SEC. 4713.</num> <heading>ELIMINATION OF OBSTETRICAL AND PEDIATRIC PAYMENT RATE REQUIREMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 1926 (42 U.S.C. 1396r–7) is repealed.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The repeal made by subsection (a) shall<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396r–7">42 USC 1396r–7 note</ref>.</p></sidenote> apply to services furnished on or after October 1, 1997.</content> </subsection> </section> <section> <num value="4714">SEC. 4714.</num> <heading>MEDICAID PAYMENT RATES FOR CERTAIN MEDICARE COSTSHARING.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Clarification Regarding State Liability for Medicare Cost-Sharing</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Section 1902(n) (42 U.S.C. 1396a(n)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by inserting “<quotedText>(1)</quotedText>” after “(n)”, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>In carrying out paragraph (1), a State is not required to provide any payment for any expenses incurred relating to payment for deductibles, coinsurance, or copayments for medicare costsharing to the extent that payment under title XVIII for the service would exceed the payment amount that otherwise would be made <page identifier="/us/stat/111/510">111 STAT. 510</page>under the State plan under this title for such service if provided to an eligible recipient other than a medicare beneficiary.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <chapeau>In the case in which a State’s payment for medicare cost-sharing for a qualified medicare beneficiary with respect to an item or service is reduced or eliminated through the application of paragraph (2)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>for purposes of applying any limitation under title XVIII on the amount that the beneficiary may be billed or charged for the service, the amount of payment made under title XVIII plus the amount of payment (if any) under the State plan shall be considered to be payment in full for the service;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the beneficiary shall not have any legal liability to make payment to a provider or to an organization described in section 1903(m)(1)(A) for the service; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> <content>any lawful sanction that may be imposed upon a provider or such an organization for excess charges under this title or title XVIII shall apply to the imposition of any charge imposed upon the individual in such case.</content></subparagraph> <continuation class="indent0 fontsize10">This paragraph shall not be construed as preventing payment of any medicare cost-sharing by a medicare supplemental policy or an employer retiree health plan on behalf of an individual.”.</continuation> </paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conforming clarification</inline>.—</heading><content>Section 1905(p)(3) (42 U.S.C. 1396d(p)(3)) is amended by inserting “<quotedText>(subject to section 1902(n)(2))</quotedText>” after “means”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Limitation on Medicare Providers</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Provider agreements</inline>.—</heading><chapeau>Section 1866(a)(1)(A) (42 U.S.C. 1395cc(a)(1)(A)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by inserting “<quotedText>(i)</quotedText>” after “(A)”, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by inserting before the comma at the end the following: “, and (ii) not to impose any charge that is prohibited under section 1902(n)(3)”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Nonparticipating providers</inline>.—</heading><content>Section 1848(g)(3)(A) (42 U.S.C. 1395w–4(g)(3)(A)) is amended by inserting before the period at the end the following: “and the provisions of section 1902(n)(3)(A) apply to further limit permissible charges under this section”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to payment for (and with respect to provider agreements with respect to) items and services furnished on or after the date of the enactment of this Act. The amendments made by subsection (a) shall also apply to payment by a State for items and services furnished before such date if such payment is the subject of a law suit that is based on the provisions of sections 1902(n) and 1905(p) of the Social Security Act and that is pending as of, or is initiated after, the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="4715">SEC. 4715.</num> <heading>TREATMENT OF VETERANS’ PENSIONS UNDER MEDICAID.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Post-Eligibility Treatment</inline>.—</heading><chapeau>Section 1902(r)(1) (42 U.S.C. 1396a(r)(1)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by inserting “<quotedText>(A)</quotedText>” after “(r)(1)”,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting “<quotedText>, the treatment described in subparagraph (B) shall apply,</quotedText>” after “under such a waiver”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by striking “<quotedText>and,</quotedText>” and inserting “<quotedText>, and</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num><clause class="inline"><num value="i">(i)</num> <chapeau>In the case of a veteran who does not have a spouse or a child, if the veteran—<page identifier="/us/stat/111/511">111 STAT. 511</page></chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>receives, after the veteran has been determined to be eligible for medical assistance under the State plan under this title, a veteran’s pension in excess of $90 per month, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>resides in a State veterans home with respect to which the Secretary of Veterans Affairs makes per diem payments for nursing home care pursuant to section 1741(a) of title 38, United States Code,</content></subclause> <continuation class="indent0 fontsize10">any such pension payment, including any payment made due to the need for aid and attendance, or for unreimbursed medical expenses, that is in excess of $90 per month shall be counted as income only for the purpose of applying such excess payment to the State veterans home’s cost of providing nursing home care to the veteran.</continuation> </clause> <clause class="indent0 fontsize10"><num value="ii">“(ii)</num> <content>The provisions of clause (i) shall apply with respect to<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> a surviving spouse of a veteran who does not have a child in the same manner as they apply to a veteran described in such clause.”.</content></clause> </subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a note</ref>.</p></sidenote> shall apply on and after October 1, 1997.</content> </subsection> </section> </chapter> <chapter> <num value="3">CHAPTER 3—</num><heading>FEDERAL PAYMENTS TO STATES</heading> <section> <num value="4721">SEC. 4721.</num> <heading>REFORMING DISPROPORTIONATE SHARE PAYMENTS UNDER STATE MEDICAID PROGRAMS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Adjustment of State DSH Allotments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 1923(f) (42 U.S.C. 1396r–4(f)) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Limitation on Federal Financial Participation</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Payment under section 1903(a) shall not be made to a State with respect to any payment adjustment made under this section for hospitals in a State for quarters in a fiscal year in excess of the disproportionate share hospital (in this subsection referred to as ‘DSH’) allotment for the State for the fiscal year, as specified in paragraphs (2) and (3).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">State dsh allotments for fiscal years 1998 through 2002</inline>.—</heading><content>The DSH allotment for a State for each fiscal year during the period beginning with fiscal year 1998 and ending with fiscal year 2002 is determined in accordance with the following table: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <thead> <tr> <th rowspan="2" style="text-align:center; border-top:1px solid black"><b xmlns="http://schemas.gpo.gov/xml/uslm">State or District</b></th> <th colspan="5" style="text-align:center; border-left:1px solid black; border-top:1px solid black"><b xmlns="http://schemas.gpo.gov/xml/uslm">DSH Allotment (in millions of dollars)</b></th> </tr> <tr> <th style="text-align:center; border-left:1px solid black; border-top:1px solid black">FY 98</th> <th style="text-align:center; border-left:1px solid black; border-top:1px solid black">FY 99</th> <th style="text-align:center; border-left:1px solid black; border-top:1px solid black">FY 00</th> <th style="text-align:center; border-left:1px solid black; border-top:1px solid black">FY 01</th> <th style="text-align:center; border-left:1px solid black; border-top:1px solid black">FY 02</th> </tr> </thead> <tbody> <tr> <td style="text-align:left; border-top:1px solid black">Alabama</td> <td style="text-align:right; border-left:1px solid black; border-top:1px solid black">293</td> <td style="text-align:right; border-left:1px solid black; border-top:1px solid black">269</td> <td style="text-align:right; border-left:1px solid black; border-top:1px solid black">248</td> <td style="text-align:right; border-left:1px solid black; border-top:1px solid black">246</td> <td style="text-align:right; border-left:1px solid black; border-top:1px solid black">246</td> </tr> <tr> <td style="text-align:left">Alaska</td> <td style="text-align:right; border-left:1px solid black">10</td> <td style="text-align:right; border-left:1px solid black">10</td> <td style="text-align:right; border-left:1px solid black">10</td> <td style="text-align:right; border-left:1px solid black">9</td> <td style="text-align:right; border-left:1px solid black">9</td> </tr> <tr> <td style="text-align:left">Arizona</td> <td style="text-align:right; border-left:1px solid black">81</td> <td style="text-align:right; border-left:1px solid black">81</td> <td style="text-align:right; border-left:1px solid black">81</td> <td style="text-align:right; border-left:1px solid black">81</td> <td style="text-align:right; border-left:1px solid black">81</td> </tr> <tr> <td style="text-align:left">Arkansas</td> <td style="text-align:right; border-left:1px solid black">2</td> <td style="text-align:right; border-left:1px solid black">2</td> <td style="text-align:right; border-left:1px solid black">2</td> <td style="text-align:right; border-left:1px solid black">2</td> <td style="text-align:right; border-left:1px solid black">2</td> </tr> <tr> <td style="text-align:left">California</td> <td style="text-align:right; border-left:1px solid black">1,085</td> <td style="text-align:right; border-left:1px solid black">1,068</td> <td style="text-align:right; border-left:1px solid black">986</td> <td style="text-align:right; border-left:1px solid black">931</td> <td style="text-align:right; border-left:1px solid black">877</td> </tr> <tr> <td style="text-align:left; vertical-align:top">Colorado</td> <td style="text-align:right; border-left:1px solid black">93</td> <td style="text-align:right; border-left:1px solid black">86</td> <td style="text-align:right; border-left:1px solid black">79</td> <td style="text-align:right; border-left:1px solid black">74</td> <td style="text-align:right; border-left:1px solid black">74</td> </tr> <tr> <td style="text-align:left">Connecticut</td> <td style="text-align:right; border-left:1px solid black">200</td> <td style="text-align:right; border-left:1px solid black">194</td> <td style="text-align:right; border-left:1px solid black">164</td> <td style="text-align:right; border-left:1px solid black">160</td> <td style="text-align:right; border-left:1px solid black">160</td> </tr> <tr> <td style="text-align:left">Delaware</td> <td style="text-align:right; border-left:1px solid black">4</td> <td style="text-align:right; border-left:1px solid black">4</td> <td style="text-align:right; border-left:1px solid black">4</td> <td style="text-align:right; border-left:1px solid black">4</td> <td style="text-align:right; border-left:1px solid black">4</td> </tr> <tr> <td style="text-align:left; vertical-align:top">District of Columbia</td> <td style="text-align:right; border-left:1px solid black">23</td> <td style="text-align:right; border-left:1px solid black">23</td> <td style="text-align:right; border-left:1px solid black">23</td> <td style="text-align:right; border-left:1px solid black">23</td> <td style="text-align:right; border-left:1px solid black">23</td> </tr> <tr> <td style="text-align:left">Florida</td> <td style="text-align:right; border-left:1px solid black">207</td> <td style="text-align:right; border-left:1px solid black">203</td> <td style="text-align:right; border-left:1px solid black">197</td> <td style="text-align:right; border-left:1px solid black">188</td> <td style="text-align:right; border-left:1px solid black">160</td> </tr> <tr> <td style="text-align:left; vertical-align:top">Georgia</td> <td style="text-align:right; border-left:1px solid black">253</td> <td style="text-align:right; border-left:1px solid black">248</td> <td style="text-align:right; border-left:1px solid black">241</td> <td style="text-align:right; border-left:1px solid black">228</td> <td style="text-align:right; border-left:1px solid black">215</td> </tr> <tr> <td style="text-align:left; vertical-align:top">Hawaii</td> <td style="text-align:right; border-left:1px solid black">0</td> <td style="text-align:right; border-left:1px solid black">0</td> <td style="text-align:right; border-left:1px solid black">0</td> <td style="text-align:right; border-left:1px solid black">0</td> <td style="text-align:right; border-left:1px solid black">0</td> </tr> <tr> <td style="text-align:left">Idaho</td> <td style="text-align:right; border-left:1px solid black">1</td> <td style="text-align:right; border-left:1px solid black">1</td> <td style="text-align:right; border-left:1px solid black">1</td> <td style="text-align:right; border-left:1px solid black">1</td> <td style="text-align:right; border-left:1px solid black">1</td> </tr> <tr> <td style="text-align:left; vertical-align:top">Illinois</td> <td style="text-align:right; border-left:1px solid black">203</td> <td style="text-align:right; border-left:1px solid black">199</td> <td style="text-align:right; border-left:1px solid black">193</td> <td style="text-align:right; border-left:1px solid black">182</td> <td style="text-align:right; border-left:1px solid black">172</td> </tr> </tbody> </table> <page identifier="/us/stat/111/512">111 STAT. 512</page> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <thead> <tr> <th rowspan="2" style="text-align:center; border-top:1px solid black"><b xmlns="http://schemas.gpo.gov/xml/uslm">State or District</b></th> <th colspan="5" style="text-align:center; border-left:1px solid black; border-top:1px solid black"><b xmlns="http://schemas.gpo.gov/xml/uslm">DSH Allotment (in millions of dollars)</b></th> </tr> <tr> <th style="text-align:center; border-left:1px solid black; border-top:1px solid black">FY 98</th> <th style="text-align:center; border-left:1px solid black; border-top:1px solid black">FY 99</th> <th style="text-align:center; border-left:1px solid black; border-top:1px solid black">FY 00</th> <th style="text-align:center; border-left:1px solid black; border-top:1px solid black">FY 01</th> <th style="text-align:center; border-left:1px solid black; border-top:1px solid black">FY 02</th> </tr> </thead> <tbody> <tr> <td style="text-align:left; border-top:1px solid black">Indiana</td> <td style="text-align:right; border-left:1px solid black; border-top:1px solid black">201</td> <td style="text-align:right; border-left:1px solid black; border-top:1px solid black">197</td> <td style="text-align:right; border-left:1px solid black; border-top:1px solid black">191</td> <td style="text-align:right; border-left:1px solid black; border-top:1px solid black">181</td> <td style="text-align:right; border-left:1px solid black; border-top:1px solid black">171</td> </tr> <tr> <td style="text-align:left; vertical-align:top">Iowa</td> <td style="text-align:right; border-left:1px solid black">8</td> <td style="text-align:right; border-left:1px solid black">8</td> <td style="text-align:right; border-left:1px solid black">8</td> <td style="text-align:right; border-left:1px solid black">8</td> <td style="text-align:right; border-left:1px solid black">8</td> </tr> <tr> <td style="text-align:left; vertical-align:top">Kansas</td> <td style="text-align:right; border-left:1px solid black">51</td> <td style="text-align:right; border-left:1px solid black">49</td> <td style="text-align:right; border-left:1px solid black">42</td> <td style="text-align:right; border-left:1px solid black">36</td> <td style="text-align:right; border-left:1px solid black">33</td> </tr> <tr> <td style="text-align:left">Kentucky</td> <td style="text-align:right; border-left:1px solid black">137</td> <td style="text-align:right; border-left:1px solid black">134</td> <td style="text-align:right; border-left:1px solid black">130</td> <td style="text-align:right; border-left:1px solid black">123</td> <td style="text-align:right; border-left:1px solid black">116</td> </tr> <tr> <td style="text-align:left; vertical-align:top">Louisiana</td> <td style="text-align:right; border-left:1px solid black">880</td> <td style="text-align:right; border-left:1px solid black">795</td> <td style="text-align:right; border-left:1px solid black">713</td> <td style="text-align:right; border-left:1px solid black">658</td> <td style="text-align:right; border-left:1px solid black">631</td> </tr> <tr> <td style="text-align:left">Maine</td> <td style="text-align:right; border-left:1px solid black">103</td> <td style="text-align:right; border-left:1px solid black">99</td> <td style="text-align:right; border-left:1px solid black">84</td> <td style="text-align:right; border-left:1px solid black">84</td> <td style="text-align:right; border-left:1px solid black">84</td> </tr> <tr> <td style="text-align:left; vertical-align:top">Maryland</td> <td style="text-align:right; border-left:1px solid black">72</td> <td style="text-align:right; border-left:1px solid black">70</td> <td style="text-align:right; border-left:1px solid black">68</td> <td style="text-align:right; border-left:1px solid black">64</td> <td style="text-align:right; border-left:1px solid black">61</td> </tr> <tr> <td style="text-align:left; vertical-align:top">Massachusetts</td> <td style="text-align:right; border-left:1px solid black">288</td> <td style="text-align:right; border-left:1px solid black">282</td> <td style="text-align:right; border-left:1px solid black">273</td> <td style="text-align:right; border-left:1px solid black">259</td> <td style="text-align:right; border-left:1px solid black">244</td> </tr> <tr> <td style="text-align:left; vertical-align:top">Michigan</td> <td style="text-align:right; border-left:1px solid black">249</td> <td style="text-align:right; border-left:1px solid black">244</td> <td style="text-align:right; border-left:1px solid black">237</td> <td style="text-align:right; border-left:1px solid black">224</td> <td style="text-align:right; border-left:1px solid black">212</td> </tr> <tr> <td style="text-align:left; vertical-align:top">Minnesota</td> <td style="text-align:right; border-left:1px solid black">16</td> <td style="text-align:right; border-left:1px solid black">16</td> <td style="text-align:right; border-left:1px solid black">16</td> <td style="text-align:right; border-left:1px solid black">16</td> <td style="text-align:right; border-left:1px solid black">16</td> </tr> <tr> <td style="text-align:left; vertical-align:top">Mississippi</td> <td style="text-align:right; border-left:1px solid black">143</td> <td style="text-align:right; border-left:1px solid black">141</td> <td style="text-align:right; border-left:1px solid black">136</td> <td style="text-align:right; border-left:1px solid black">129</td> <td style="text-align:right; border-left:1px solid black">122</td> </tr> <tr> <td style="text-align:left; vertical-align:top">Missouri</td> <td style="text-align:right; border-left:1px solid black">436</td> <td style="text-align:right; border-left:1px solid black">423</td> <td style="text-align:right; border-left:1px solid black">379</td> <td style="text-align:right; border-left:1px solid black">379</td> <td style="text-align:right; border-left:1px solid black">379</td> </tr> <tr> <td style="text-align:left">Montana</td> <td style="text-align:right; border-left:1px solid black">0.2</td> <td style="text-align:right; border-left:1px solid black">0.2</td> <td style="text-align:right; border-left:1px solid black">0.2</td> <td style="text-align:right; border-left:1px solid black">0.2</td> <td style="text-align:right; border-left:1px solid black">0.2</td> </tr> <tr> <td style="text-align:left; vertical-align:top">Nebraska</td> <td style="text-align:right; border-left:1px solid black">5</td> <td style="text-align:right; border-left:1px solid black">5</td> <td style="text-align:right; border-left:1px solid black">5</td> <td style="text-align:right; border-left:1px solid black">5</td> <td style="text-align:right; border-left:1px solid black">5</td> </tr> <tr> <td style="text-align:left; vertical-align:top">Nevada</td> <td style="text-align:right; border-left:1px solid black">37</td> <td style="text-align:right; border-left:1px solid black">37</td> <td style="text-align:right; border-left:1px solid black">37</td> <td style="text-align:right; border-left:1px solid black">37</td> <td style="text-align:right; border-left:1px solid black">37</td> </tr> <tr> <td style="text-align:left">New Hampshire</td> <td style="text-align:right; border-left:1px solid black">140</td> <td style="text-align:right; border-left:1px solid black">136</td> <td style="text-align:right; border-left:1px solid black">130</td> <td style="text-align:right; border-left:1px solid black">130</td> <td style="text-align:right; border-left:1px solid black">130</td> </tr> <tr> <td style="text-align:left; vertical-align:top">New Jersey</td> <td style="text-align:right; border-left:1px solid black">600</td> <td style="text-align:right; border-left:1px solid black">582</td> <td style="text-align:right; border-left:1px solid black">515</td> <td style="text-align:right; border-left:1px solid black">515</td> <td style="text-align:right; border-left:1px solid black">515</td> </tr> <tr> <td style="text-align:left; vertical-align:top">New Mexico</td> <td style="text-align:right; border-left:1px solid black">5</td> <td style="text-align:right; border-left:1px solid black">5</td> <td style="text-align:right; border-left:1px solid black">5</td> <td style="text-align:right; border-left:1px solid black">5</td> <td style="text-align:right; border-left:1px solid black">5</td> </tr> <tr> <td style="text-align:left">New York</td> <td style="text-align:right; border-left:1px solid black">1,512</td> <td style="text-align:right; border-left:1px solid black">1,482</td> <td style="text-align:right; border-left:1px solid black">1,436</td> <td style="text-align:right; border-left:1px solid black">1,361</td> <td style="text-align:right; border-left:1px solid black">1,285</td> </tr> <tr> <td style="text-align:left">North Carolina</td> <td style="text-align:right; border-left:1px solid black">278</td> <td style="text-align:right; border-left:1px solid black">272</td> <td style="text-align:right; border-left:1px solid black">264</td> <td style="text-align:right; border-left:1px solid black">250</td> <td style="text-align:right; border-left:1px solid black">236</td> </tr> <tr> <td style="text-align:left">North Dakota</td> <td style="text-align:right; border-left:1px solid black">1</td> <td style="text-align:right; border-left:1px solid black">1</td> <td style="text-align:right; border-left:1px solid black">1</td> <td style="text-align:right; border-left:1px solid black">1</td> <td style="text-align:right; border-left:1px solid black">1</td> </tr> <tr> <td style="text-align:left; vertical-align:top">Ohio</td> <td style="text-align:right; border-left:1px solid black">382</td> <td style="text-align:right; border-left:1px solid black">374</td> <td style="text-align:right; border-left:1px solid black">363</td> <td style="text-align:right; border-left:1px solid black">344</td> <td style="text-align:right; border-left:1px solid black">325</td> </tr> <tr> <td style="text-align:left; vertical-align:top">Oklahoma</td> <td style="text-align:right; border-left:1px solid black">16</td> <td style="text-align:right; border-left:1px solid black">16</td> <td style="text-align:right; border-left:1px solid black">16</td> <td style="text-align:right; border-left:1px solid black">16</td> <td style="text-align:right; border-left:1px solid black">16</td> </tr> <tr> <td style="text-align:left; vertical-align:top">Oregon</td> <td style="text-align:right; border-left:1px solid black">20</td> <td style="text-align:right; border-left:1px solid black">20</td> <td style="text-align:right; border-left:1px solid black">20</td> <td style="text-align:right; border-left:1px solid black">20</td> <td style="text-align:right; border-left:1px solid black">20</td> </tr> <tr> <td style="text-align:left; vertical-align:top">Pennsylvania</td> <td style="text-align:right; border-left:1px solid black">529</td> <td style="text-align:right; border-left:1px solid black">518</td> <td style="text-align:right; border-left:1px solid black">502</td> <td style="text-align:right; border-left:1px solid black">476</td> <td style="text-align:right; border-left:1px solid black">449</td> </tr> <tr> <td style="text-align:left; vertical-align:top">Rhode Island</td> <td style="text-align:right; border-left:1px solid black">62</td> <td style="text-align:right; border-left:1px solid black">60</td> <td style="text-align:right; border-left:1px solid black">58</td> <td style="text-align:right; border-left:1px solid black">55</td> <td style="text-align:right; border-left:1px solid black">52</td> </tr> <tr> <td style="text-align:left; vertical-align:top">South Carolina</td> <td style="text-align:right; border-left:1px solid black">313</td> <td style="text-align:right; border-left:1px solid black">303</td> <td style="text-align:right; border-left:1px solid black">262</td> <td style="text-align:right; border-left:1px solid black">262</td> <td style="text-align:right; border-left:1px solid black">262</td> </tr> <tr> <td style="text-align:left">South Dakota</td> <td style="text-align:right; border-left:1px solid black">1</td> <td style="text-align:right; border-left:1px solid black">1</td> <td style="text-align:right; border-left:1px solid black">1</td> <td style="text-align:right; border-left:1px solid black">1</td> <td style="text-align:right; border-left:1px solid black">1</td> </tr> <tr> <td style="text-align:left; vertical-align:top">Tennessee</td> <td style="text-align:right; border-left:1px solid black">0</td> <td style="text-align:right; border-left:1px solid black">0</td> <td style="text-align:right; border-left:1px solid black">0</td> <td style="text-align:right; border-left:1px solid black">0</td> <td style="text-align:right; border-left:1px solid black">0</td> </tr> <tr> <td style="text-align:left; vertical-align:top">Texas</td> <td style="text-align:right; border-left:1px solid black">979</td> <td style="text-align:right; border-left:1px solid black">950</td> <td style="text-align:right; border-left:1px solid black">806</td> <td style="text-align:right; border-left:1px solid black">765</td> <td style="text-align:right; border-left:1px solid black">765</td> </tr> <tr> <td style="text-align:left; vertical-align:top">Utah</td> <td style="text-align:right; border-left:1px solid black">3</td> <td style="text-align:right; border-left:1px solid black">3</td> <td style="text-align:right; border-left:1px solid black">3</td> <td style="text-align:right; border-left:1px solid black">3</td> <td style="text-align:right; border-left:1px solid black">3</td> </tr> <tr> <td style="text-align:left; vertical-align:top">Vermont</td> <td style="text-align:right; border-left:1px solid black">18</td> <td style="text-align:right; border-left:1px solid black">18</td> <td style="text-align:right; border-left:1px solid black">18</td> <td style="text-align:right; border-left:1px solid black">18</td> <td style="text-align:right; border-left:1px solid black">18</td> </tr> <tr> <td style="text-align:left; vertical-align:top">Virginia</td> <td style="text-align:right; border-left:1px solid black">70</td> <td style="text-align:right; border-left:1px solid black">68</td> <td style="text-align:right; border-left:1px solid black">66</td> <td style="text-align:right; border-left:1px solid black">63</td> <td style="text-align:right; border-left:1px solid black">59</td> </tr> <tr> <td style="text-align:left; vertical-align:top">Washington</td> <td style="text-align:right; border-left:1px solid black">174</td> <td style="text-align:right; border-left:1px solid black">171</td> <td style="text-align:right; border-left:1px solid black">166</td> <td style="text-align:right; border-left:1px solid black">157</td> <td style="text-align:right; border-left:1px solid black">148</td> </tr> <tr> <td style="text-align:left; vertical-align:top">West Virginia</td> <td style="text-align:right; border-left:1px solid black">64</td> <td style="text-align:right; border-left:1px solid black">63</td> <td style="text-align:right; border-left:1px solid black">61</td> <td style="text-align:right; border-left:1px solid black">58</td> <td style="text-align:right; border-left:1px solid black">54</td> </tr> <tr> <td style="text-align:left; vertical-align:top">Wisconsin</td> <td style="text-align:right; border-left:1px solid black">7</td> <td style="text-align:right; border-left:1px solid black">7</td> <td style="text-align:right; border-left:1px solid black">7</td> <td style="text-align:right; border-left:1px solid black">7</td> <td style="text-align:right; border-left:1px solid black">7</td> </tr> <tr> <td style="text-align:left; border-bottom:1px solid black">Wyoming</td> <td style="text-align:right; border-left:1px solid black; border-bottom:1px solid black">0</td> <td style="text-align:right; border-left:1px solid black; border-bottom:1px solid black">0</td> <td style="text-align:right; border-left:1px solid black; border-bottom:1px solid black">0</td> <td style="text-align:right; border-left:1px solid black; border-bottom:1px solid black">0</td> <td style="text-align:right; border-left:1px solid black; border-bottom:1px solid black">0.</td> </tr> </tbody> </table> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">State dsh allotments for fiscal year 2003 and thereafter</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The DSH allotment for any State for fiscal year 2003 and each succeeding fiscal year is equal to the DSH allotment for the State for the preceding fiscal year under paragraph (2) or this paragraph, increased, subject to subparagraph (B), by the percentage change in the consumer price index for all urban consumers (all items; U.S. city average), for the previous fiscal year.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Limitation</inline>.—</heading><chapeau>The DSH allotment for a State shall not be increased under subparagraph (A) for a fiscal year to the extent that such an increase would result in the DSH allotment for the year exceeding the greater of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the DSH allotment for the previous year, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>12 percent of the total amount of expenditures under the State plan for medical assistance during the fiscal year.</content></clause> </subparagraph> </paragraph> <subparagraph class="indent2 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Definition of state</inline>.—</heading><content>In this subsection, the term ‘State’ means the 50 States and the District of Columbia.”.</content></subparagraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396r–4">42 USC 1396r–4 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendment made by paragraph (1) shall apply to payment adjustments attributable to DSH allotments tor fiscal years beginning with fiscal year 1998.<page identifier="/us/stat/111/513">111 STAT. 513</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Limitation on Payments to Institutions for Mental Diseases</inline>.—</heading><content>Section 1923 of the Social Security Act (42 U.S.C. 1396r–4) is amended by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Limitation on Certain State DSH Expenditures</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Payment under section 1903(a) shall not be made to a State with respect to any payment adjustments made under this section for quarters in a fiscal year (beginning with fiscal year 1998) to institutions for mental diseases or other mental health facilities, to the extent the aggregate of such adjustments in the fiscal year exceeds the lesser of the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">1995 imd dsh payment adjustments</inline>.—</heading><content>The total State DSH expenditures that are attributable to fiscal year 1995 for payments to institutions for mental diseases and other mental health facilities (based on reporting data specified by the State on HCFA Form 64 as mental health DSH, and as approved by the Secretary).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Applicable percentage of 1995 total dsh payment allotment</inline>.—</heading><content>The amount of such payment adjustments which are equal to the applicable percentage of the Federal share of payment adjustments made to hospitals in the State under subsection (c) that are attributable to the 1995 DSH allotment for the State for payments to institutions for mental diseases and other mental health facilities (based on reporting data specified by the State on HCFA Form 64 as mental health DSH, and as approved by the Secretary).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Applicable percentage</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of paragraph (1), the applicable percentage with respect to—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>each of fiscal years 1998, 1999, and 2000, is the percentage determined under subparagraph (B); or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>a succeeding fiscal year is the lesser of the percentage determined under subparagraph (B) or the following percentage:</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>For fiscal year 2001, 50 percent.</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>For fiscal year 2002, 40 percent.</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>For each succeeding fiscal year, 33 percent.</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">1995 percentage</inline>.—</heading><chapeau>The percentage determined under this subparagraph is the ratio (determined as a percentage) of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the Federal share of payment adjustments made to hospitals in the State under subsection (c) that are attributable to the 1995 DSH allotment for the State (as reported by the State not later than January 1, 1997, on HCFA Form 64, and as approved by the Secretary) for payments to institutions for mental diseases and other mental health facilities, to</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the State 1995 DSH spending amount.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">State 1995 dsh spending amount</inline>.—</heading><content>For purposes of subparagraph (B)(ii), the ‘State 1995 DSH spending amount’, with respect to a State, is the Federal medical assistance percentage (for fiscal year 1995) of the payment adjustments made under subsection (c) under the State plan that are attributable to the fiscal year 1995 DSH <page identifier="/us/stat/111/514">111 STAT. 514</page>allotment for the State (as reported by the State not later than January 1, 1997, on HCFA Form 64, and as approved by the Secretary).”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Description of Targeting Payments</inline>.—</heading><content>Section 1923(a)(2) (42 U.S.C. 1396r–4(a)(2)) is amended by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>A State plan under this title shall not be considered to meet the requirements of section 1902(a)(13)(A)(iv) (insofar as it requires payments to hospitals to take into account the situation of hospitals that serve a disproportionate number of low-income patients with special needs), as of October 1, 1998, unless the State has submitted to the Secretary by such date a description of the methodology used by the State to identify and to make payments to disproportionate share hospitals, including children’s hospitals, on the basis of the proportion of low-income and medicaid patients served by such hospitals.<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> The State shall provide an annual report to the Secretary describing the disproportionate share payments to each such disproportionate share hospital.”.</content></subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Direct Payment by State for Managed Care Enrollees</inline>.—</heading><content>Section 1923 (42 U.S.C. 1396r–4) is amended by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="i">“(i)</num> <heading><inline class="smallCaps">Requirement for Direct Payment</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>No payment may be made under section 1903(a)(1) with respect to a payment adjustment made under this section, for services furnished by a hospital on or after October 1, 1997, with respect to individuals eligible for medical assistance under the State plan who are enrolled with a managed care entity (as defined in section 1932(a)(1)(B)) or under any other managed care arrangement unless a payment, equal to the amount of the payment adjustment—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>is made directly to the hospital by the State; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>is not used to determine the amount of a prepaid capitation payment under the State plan to the entity or arrangement with respect to such individuals.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Exception for current arrangements</inline>.—</heading><content>Paragraph (1) shall not apply to a payment adjustment provided pursuant to a payment arrangement in effect on July 1, 1997.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8">California.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396r–4">42 USC 1396r–4 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Transition Rule</inline>.—</heading><chapeau>Effective July 1, 1997, section 1923(g)(2)(A) of the Social Security Act (42 U.S.C. 1396r–4(g)(2)(A)) shall be applied to the State of California as though—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>“(or that begins on or after July 1, 1997, and before July 1, 1999)” were inserted in such section after “January 1, 1995,”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>“(or 175 percent in the case of a State fiscal year that begins on or after July 1, 1997, and before July 1, 1999)” were inserted in such section after “200 percent”.</content></paragraph> </subsection> </section> <section> <num value="4722">SEC. 4722.</num> <heading>TREATMENT OF STATE TAXES IMPOSED ON CERTAIN HOSPITALS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Exception From Tax Does Not Disqualify as Broad-Based Tax</inline>.—</heading><chapeau>Section 1903(w)(3) (42 U.S.C. 1396b(w)(3)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subparagraph (B), by striking “<quotedText>and (E)</quotedText>” and inserting “<quotedText>(E), and (F)</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following:<page identifier="/us/stat/111/515">111 STAT. 515</page> <quotedContent> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>In no case shall a tax not qualify as a broad-based health care related tax under this paragraph because it does not apply to a hospital that is described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code and that does not accept payment under the State plan under this title or under title XVIII.”.</content></subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Reduction in Federal Financial Participation in Case of Imposition of Tax</inline>.—</heading><content>Section 1903(b) (42 U.S.C. 1396b(b)), as amended by section 4707(b), is amended by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>Notwithstanding the preceding provisions of this section, the amount determined under subsection (a)(1) for any State shall be decreased in a quarter by the amount of any health care related taxes (described in section 1902(w)(3)(A)) that are imposed on a hospital described in subsection (w)(3)(F) in that quarter.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Waiver of Certain Provider Tax Provisions</inline>.—</heading><content>Notwithstanding any other provision of law, taxes, fees, or assessments, as defined in section 1903(w)(3)(A) of the Social Security Act (42 U.S.C. 1396b(w)(3)(A)), that were collected by the State of New York from a health care provider before June 1, 1997, and for which a waiver of the provisions of subparagraph (B) or (C) of section 1903(w)(3) of such Act has been applied for, or that would, but for this subsection require that such a waiver be applied for, in accordance with subparagraph (E) of such section, and, (if so applied for) upon which action by the Secretary of Health and Human Services (including any judicial review of any such proceeding) has not been completed as of July 23, 1997, are deemed to be permissible health care related taxes and in compliance with the requirements of subparagraphs (B) and (C) of section 1903(w)(3) of such Act.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by subsection<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396b">42 USC 1396b note</ref>.</p></sidenote> (a) shall apply to taxes imposed before, on, or after the date of the enactment of this Act and the amendment made by subsection (b) shall apply to taxes imposed on or after such date.</content> </subsection> </section> <section> <num value="4723">SEC. 4723.</num> <heading>ADDITIONAL FUNDING FOR STATE EMERGENCY HEALTH SERVICES FURNISHED TO UNDOCUMENTED ALIENS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1611">8 USC 1611 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Total Amount Available for Allotment</inline>.—</heading><content>There are available for allotments under this section for each of the 4 consecutive fiscal years (beginning with fiscal year 1998) $25,000,000 for payments to certain States under this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">State Allotment Amount</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary of Health and Human Services shall compute an allotment for each fiscal year beginning with fiscal year 1998 and ending with fiscal year 2001 for each of the 12 States with the highest number of undocumented aliens. The amount of such allotment for each such State for a fiscal year shall bear the same ratio to the total amount available for allotments under subsection (a) for the fiscal year as the ratio of the number of undocumented aliens in the State in the fiscal year bears to the total of such numbers for all such States for such fiscal year. The amount of allotment to a State provided under this paragraph for a fiscal year that is not paid out under subsection (c) shall be available for payment during the subsequent fiscal year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Determination</inline>.—</heading><content>For purposes of paragraph (1), the number of undocumented aliens in a State under this section <page identifier="/us/stat/111/516">111 STAT. 516</page>shall be determined based on estimates of the resident illegal alien population residing in each State prepared by the Statistics Division of the Immigration and Naturalization Service as of October 1992 (or as of such later date if such date is at least 1 year before the beginning of the fiscal year involved).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Use of Funds</inline>.—</heading><content>From the allotments made under subsection (b), the Secretary shall pay to each State amounts the State demonstrates were paid by the State (or by a political subdivision of the State) for emergency health services furnished to undocumented aliens.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">State Defined</inline>.—</heading><content>For purposes of this section, the term “State” includes the District of Columbia.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">State Entitlement</inline>.—</heading><content>This section constitutes budget authority in advance of appropriations Acts and represents the obligation of the Federal Government to provide for the payment to States of amounts provided under this section.</content> </subsection> </section> <section> <num value="4724">SEC. 4724.</num> <heading>ELIMINATION OF WASTE, FRAUD, AND ABUSE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Ban on Spending for Nonhealth Related Items</inline>.—</heading><chapeau>Section 1903(i) (42 U.S.C. 1396b(i)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in paragraphs (2) and (16), by striking the period at the end and inserting “<quotedText>; or</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in paragraphs (10)(B), (11), and (13), by adding “<quotedText>or</quotedText>” at the end; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by inserting after paragraph (16), the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="17">“(17)</num> <content>with respect to any amount expended for roads, bridges, stadiums, or any other item or service not covered under a State plan under this title.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Surety Bond Requirement for Home Health Agencies</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Section 1903(i) (42 U.S.C. 1396b(i)), as amended by subsection (a), is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in paragraph (17), by striking the period at the end and inserting “<quotedText>; or</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by inserting after paragraph (17), the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="18">“(18)</num> <content>with respect to any amount expended for home health care services provided by an agency or organization unless the agency or organization provides the State agency on a continuing basis a surety bond in a form specified by the Secretary under paragraph (7) of section 186 l(o) and in an amount that is not less than $50,000 or such comparable surety bond as the Secretary may permit under the last sentence of such section.”.</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396b">42 USC 1396b note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendments made by paragraph (1) shall apply to home health care services furnished on or after January 1, 1998.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Conflict of Interest Safeguards</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Section 1902(a)(4)(C) (42 U.S.C. 1396a(a)(4)(C)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>and (C)</quotedText>” and inserting “<quotedText>(C)</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking “<quotedText>local officer or employee</quotedText>” and inserting “<quotedText>local officer, employee, or independent contractor</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by striking “<quotedText>such an officer or employee</quotedText>” the first 2 places it appears and inserting “<quotedText>such an officer, employee, or contractor</quotedText>”; and<page identifier="/us/stat/111/517">111 STAT. 517</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>by inserting before the semicolon the following: “, and (D) that each State or local officer, employee, or independent contractor who is responsible for selecting, awarding, or otherwise obtaining items and services under the State plan shall be subject to safeguards against conflicts of interest that are at least as stringent as the safeguards that apply under section 27 of the Office of Federal Procurement Policy Act (41 U.S.C. 423) to persons described in subsection (a)(2) of such section of that Act”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendments made by paragraph<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a note</ref>.</p></sidenote> (1) shall take effect on January 1, 1998.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Authority to Refuse to Enter Into Medicaid Agreements With Individuals or Entities Convicted of Felonies</inline>.—</heading><chapeau>Section 1902(a)(23) (42 U.S.C. 1396(a)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>except as provided in subsection (g) and in section 1915 and except in the case of Puerto Rico, the Virgin Islands, and Guam,</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting before the semicolon at the end the following: “, except as provided in subsection (g) and in section 1915, except that this paragraph shall not apply in the case of Puerto Rico, the Virgin Islands, and Guam, and except that nothing in this paragraph shall be construed as requiring a State to provide medical assistance for such services furnished by a person or entity convicted of a felony under Federal or State law for an offense which the State agency determines is inconsistent with the best interests of beneficiaries under the State plan”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Monitoring Payments for Dual Eligibles</inline>.—</heading><content>The Administrator<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a note</ref>.</p></sidenote> of the Health Care Financing Administration shall develop mechanisms to improve the monitoring of, and to prevent, inappropriate payments under the medicaid program under title XIX of the Social Security Act (42 U.S.C. 1396 et seq.) in the case of individuals who are dually eligible for benefits under such program and under the medicare program under title XVIII of such Act (42 U.S.C. 1395 et seq.).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Beneficiary and Program Protection Against Waste, Fraud, and Abuse</inline>.—</heading><chapeau>Section 1902(a) (42 U.S.C. 1396a(a)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>and</quotedText>” at the end of paragraph (62);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking the period at the end of paragraph (63) and inserting “<quotedText>; and</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by inserting after paragraph (63) the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="64">“(64)</num> <content>provide, not later than 1 year after the date of the enactment of this paragraph, a mechanism to receive reports from beneficiaries and others and compile data concerning alleged instances of waste, fraud, and abuse relating to the operation of this title;”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g)</num> <heading><inline class="smallCaps">Disclosure of Information and Surety Bond Requirement for Suppliers of Durable Medical Equipment</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Requirement</inline>.—</heading><chapeau>Section 1902(a) (42 U.S.C. 1396a(a)), as amended by subsection (f), is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>and</quotedText>” at the end of paragraph (63);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking the period at the end of paragraph (64) and inserting “<quotedText>; and</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by inserting after paragraph (64) the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="65">“(65)</num> <chapeau>provide that the State shall issue provider numbers for all suppliers of medical assistance consisting of durable <page identifier="/us/stat/111/518">111 STAT. 518</page>medical equipment, as defined in section 186 l(n), and the State shall not issue or renew such a supplier number for any such supplier unless—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num><clause class="inline"><num value="i">(i)</num> <content>full and complete information as to the identity of each person with an ownership or control interest (as defined in section 1124(a)(3)) in the supplier or in any subcontractor (as defined by the Secretary in regulations) in which the supplier directly or indirectly has a 5 percent or more ownership interest; and</content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii)</num> <content>to the extent determined to be feasible under regulations of the Secretary, the name of any disclosing entity (as defined in section 1124(a)(2)) with respect to which a person with such an ownership or control interest in the supplier is a person with such an ownership or control interest in the disclosing entity; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>a surety bond in a form specified by the Secretary under section 1834(a)(16)(B) and in an amount that is not less than $50,000 or such comparable surety bond as the Secretary may permit under the second sentence of such section.”.</content></subparagraph> </paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendments made by paragraph (1) shall apply to suppliers of medical assistance consisting of durable medical equipment furnished on or after January 1, 1998.</content></paragraph> </subsection> </section> <section> <num value="4725">SEC. 4725.</num> <heading>INCREASED FMAPS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396d">42 USC 1396d note</ref>.</p></sidenote> <heading><inline class="smallCaps">Alaska</inline>.—</heading><chapeau>Notwithstanding the first sentence of section 1905(b) of the Social Security Act (42 U.S.C. 1396d(b)), the Federal medical assistance percentage determined under such sentence for Alaska shall be 59.8 percent but only with respect to—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>items and services furnished under a State plan under title XIX or under a State child health plan under title XXI of such Act during fiscal years 1998, 1999, and 2000;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>payments made on a capitation or other risk-basis under such titles for coverage occurring during such period; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>payments under title XIX of such Act attributable to DSH allotments for such State determined under section 1923(f) of such Act (42 U.S.C. 1396r–4(f)) for such fiscal years.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">District of Columbia</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The first sentence of section 1905(b) (42 U.S.C. 1396d(b)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>and (2)</quotedText>” and inserting “<quotedText>, (2)</quotedText>”, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by inserting before the period at the end the following: “, and (3) for purposes of this title and title XXI, the Federal medical assistance percentage for the District of Columbia shall be 70 percent”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396d">42 USC 1396d note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective date</inline>.—</heading><chapeau>The amendments made by paragraph (1) shall apply to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>items and services furnished on or after October 1, 1997;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>payments made on a capitation or other risk-basis for coverage occurring on or after such date; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>payments attributable to DSH allotments for such States determined under section 1923(f) of such Act (42 U.S.C. 1396r–4(f)) for fiscal years beginning with fiscal year 1998.<page identifier="/us/stat/111/519">111 STAT. 519</page></content></subparagraph> </paragraph> </subsection> </section> <section> <num value="4726">SEC. 4726.</num> <heading>INCREASE IN PAYMENT LIMITATION FOR TERRITORIES.</heading> <chapeau>Section 1108 (42 U.S.C. 1308) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subsection (f), by striking “<quotedText>The</quotedText>” and inserting “<quotedText>Subject to subsection (g), the</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Medicaid Payments to Territories for Fiscal Year 1998 and Thereafter</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Fiscal year</inline> 1998.—</heading><chapeau>With respect to fiscal year 1998, the amounts otherwise determined for Puerto Rico, the Virgin Islands, Guam, the Northern Mariana Islands, and American Samoa under subsection (f) for such fiscal year shall be increased by the following amounts:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>For Puerto Rico, $30,000,000.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>For the Virgin Islands, $750,000.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>For Guam, $750,000.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>For the Northern Mariana Islands, $500,000.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>For American Samoa, $500,000.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Fiscal year 1999 and thereafter</inline>.—</heading><chapeau>Notwithstanding subsection (f), with respect to fiscal year 1999 and any fiscal year thereafter, the total amount certified by the Secretary under title XIX for payment to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Puerto Rico shall not exceed the sum of the amount provided in this subsection for the preceding fiscal year increased by the percentage increase in the medical care component of the Consumer Price Index for all urban consumers (as published by the Bureau of Labor Statistics) for the 12-month period ending in March preceding the beginning of the fiscal year, rounded to the nearest $100,000;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the Virgin Islands shall not exceed the sum of the amount provided in this subsection for the preceding fiscal year increased by the percentage increase referred to in subparagraph (A), rounded to the nearest $10,000;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>Guam shall not exceed the sum of the amount provided in this subsection for the preceding fiscal year increased by the percentage increase referred to in subparagraph (A), rounded to the nearest $10,000;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>the Northern Mariana Islands shall not exceed the sum of the amount provided in this subsection for the preceding fiscal year increased by the percentage increase referred to in subparagraph (A), rounded to the nearest $10,000; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>American Samoa shall not exceed the sum of the amount provided in this subsection for the preceding fiscal year increased by the percentage increase referred to in subparagraph (A), rounded to the nearest $10,000.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> </section> </chapter> <chapter> <num value="4">CHAPTER 4—</num><heading>ELIGIBILITY</heading> <section> <num value="4731">SEC. 4731.</num> <heading>STATE OPTION OF CONTINUOUS ELIGIBILITY FOR 12 MONTHS; CLARIFICATION OF STATE OPTION TO COVER CHILDREN.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Continuous Eligibility Option</inline>.—</heading><content>Section 1902(e) (42 U.S.C. 1396a(e)) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="12">“(12)</num> <chapeau>At the option of the State, the plan may provide that an individual who is under an age specified by the State (not <page identifier="/us/stat/111/520">111 STAT. 520</page>to exceed 19 years of age) and who is determined to be eligible for benefits under a State plan approved under this title under subsection (a)(10)(A) shall remain eligible for those benefits until the earlier of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the end of a period (not to exceed 12 months) following the determination; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the time that the individual exceeds that age.”.</content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Clarification of State Option to Cover All Children Under 19 Years of Age</inline>.—</heading><content>Section 1902(l)(1)(D) (42 U.S.C. 1396a(l)(1)(D)) is amended by inserting “<quotedText>(or, at the option of a State, after any earlier date)</quotedText>” after “children born after September 30, 1983”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to medical assistance for items and services furnished on or after October 1, 1997.</content> </subsection> </section> <section> <num value="4732">SEC. 4732.</num> <heading>PAYMENT OF PART B PREMIUMS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Eligibility</inline>.—</heading><chapeau>Section 1902(a)(10)(E) (42 U.S.C. 1396a(a)(10)(E)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>and</quotedText>” at the end of clause (ii); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting after clause (iii) the following: <quotedContent> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <chapeau>subject to sections 1933 and 1905(p)(4), for making medical assistance available (but only for premiums payable with respect to months during the period beginning with January 1998, and ending with December 2002)—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>for medicare cost-sharing described in section 1905(p)(3)(A)(ii) for individuals who would be qualified medicare beneficiaries described in section 1905(p)(1) but for the fact that their income exceeds the income level established by the State under section 1905(p)(2) and is at least 120 percent, but less than 135 percent, of the official poverty line (referred to in such section) for a family of the size involved and who are not otherwise eligible for medical assistance under the State plan, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>for the portion of medicare cost-sharing described in section 1905(p)(3)(A)(ii) that is attributable to the operation of the amendments made by (and subsection (e)(3) of) section 4611 of the Balanced Budget Act of 1997 for individuals who would be described in subclause (I) if ‘135 percent’ and ‘175 percent’ were substituted for ‘120 percent’ and ‘135 percent’ respectively; and”.</content></subclause> </clause> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>Section 1905(b) (42 U.S.C. 1396d(b)) is amended by striking “<quotedText>The term</quotedText>” and inserting “<quotedText>Subject to section 1933(d), the term</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Terms and Conditions of Coverage</inline>.—</heading><content>Title XIX (42 U.S.C. 1395 et seq.), as amended by section 4701(a), is amended by <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396v">42 USC 1396v</ref>.</p></sidenote>redesignating section 1933 as section 1934 and by inserting after section 1932 the following new section: <quotedContent> <level> <heading class="centered">“<inline class="smallCaps">state coverage of medicare cost-sharing for additional low-income medicare beneficiaries</inline></heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396u–3">42 USC 1396u–3</ref>.</p></sidenote> <section> <num value="1933">“<inline class="smallCaps">Sec</inline>. 1933.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>A State plan under this title shall provide, under section 1902(a)(10)(E)(iv) and subject to the succeeding provisions of this section and through a plan amendment, for medical assistance for payment of the cost of medicare <page identifier="/us/stat/111/521">111 STAT. 521</page>cost-sharing described in such section on behalf of all individuals described in such section (in this section referred to as ‘qualifying individuals’) who are selected to receive such assistance under subsection (b).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Selection of Qualifying Individuals</inline>.—</heading><chapeau>A State shall select qualifying individuals, and provide such individuals with assistance, under this section consistent with the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">All qualifying individuals may apply</inline>.—</heading><content>The State shall permit all qualifying individuals to apply for assistance during a calendar year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Selection on first-come, first-served basis</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>For each calendar year (beginning with 1998), from (and to the extent of) the amount of the allocation under subsection (c) for the State for the fiscal year ending in such calendar year, the State shall select qualifying individuals who apply for the assistance in the order in which they apply.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Carryover</inline>.—</heading><content>For calendar years after 1998, the State shall give preference to individuals who were provided such assistance (or other assistance described in section 1902(a)(10)(E)) in the last month of the previous year and who continue to be (or become) qualifying individuals.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Limit on number of individuals based on allocation</inline>.—</heading><content>The State shall limit the number of qualifying individuals selected with respect to assistance in a calendar year so that the aggregate amount of such assistance provided to such individuals in such year is estimated to be equal to (but not exceed) the State’s allocation under subsection (c) for the fiscal year ending in such calendar year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Receipt of assistance during duration of year</inline>.—</heading><content>If a qualifying individual is selected to receive assistance under this section for a month in year, the individual is entitled to receive such assistance for the remainder of the year if the individual continues to be a qualifying individual. The fact that an individual is selected to receive assistance under this section at any time during a year does not entitle the individual to continued assistance for any succeeding year.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Allocation</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Total allocation</inline>.—</heading><chapeau>The total amount available for allocation under this section for—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>fiscal year 1998 is $200,000,000;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>fiscal year 1999 is $250,000,000;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>fiscal year 2000 is $300,000,000;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>fiscal year 2001 is $350,000,000; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>fiscal year 2002 is $400,000,000.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Allocation to states</inline>.—</heading><chapeau>The Secretary shall provide for the allocation of the total amount described in paragraph (1) for a fiscal year, among the States that executed a plan amendment in accordance with subsection (a), based upon the Secretary’s estimate of the ratio of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>an amount equal to the sum of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>twice the total number of individuals described in section 1902(a)(10)(E)(iv)(I) in the State, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the total number of individuals described in section 1902(a)(10)(E)(iv)(II) in the State; to</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the sum of the amounts computed under subparagraph (A) for all eligible States.<page identifier="/us/stat/111/522">111 STAT. 522</page></content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Applicable FMAP</inline>.—</heading><chapeau>With respect to assistance described in section 1902(a)(10)(E)(iv) furnished in a State for calendar quarters in a calendar year —</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>to the extent that such assistance does not exceed the State’s allocation under subsection (c) for the fiscal year ending in the calendar year, the Federal medical assistance percentage shall be equal to 100 percent; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>to the extent that such assistance exceeds such allocation, the Federal medical assistance percentage is 0 percent.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Limitation on Entitlement</inline>.—</heading><content>Except as specifically provided under this section, nothing in this title shall be construed as establishing any entitlement of individuals described in section 1902(a)(10)(E)(iv) to assistance described in such section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Coverage of Costs Through Part B of the Medicare Program</inline>.—</heading><content>For each fiscal year, the Secretary shall provide for the transfer from the Federal Supplementary Medical Insurance Trust Fund under section 1841 to the appropriate account in the Treasury that provides for payments under section 1903(a) with respect to medical assistance provided under this section, of an amount equivalent to the total of the amount of payments made under such section that is attributable to this section and such transfer shall be treated as an expenditure from such Trust Fund for purposes of section 1839.”.</content> </subsection> </section> </level> </quotedContent> </content></subsection> </section> <section> <num value="4733">SEC. 4733.</num> <heading>STATE OPTION TO PERMIT WORKERS WITH DISABILITIES TO BUY INTO MEDICAID.</heading> <chapeau>Section 1902(a)(10)(A)(ii) (42 U.S.C. 1396a(a)(10)(A)(ii)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subclause (XI), by striking “<quotedText>or</quotedText>” at the end;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subclause (XII), by adding “<quotedText>or</quotedText>” at the end; and (3) by adding at the end the following: <quotedContent> <subclause class="indent4 fontsize10"><num value="XIII">“(XIII)</num> <content>who are in families whose income is less than 250 percent of the income official poverty line (as defined by the Office of Management and Budget, and revised annually in accordance with section 673(2) of the Omnibus Budget Reconciliation Act of 1981) applicable to a family of the size involved, and who but for earnings in excess of the limit established under section 1905(q)(2)(B), would be considered to be receiving supplemental security income (subject, notwithstanding section 1916, to payment of premiums or other cost-sharing charges (set on a sliding scale based on income) that the State may determine);”.</content></subclause> </quotedContent> </content></paragraph> </section> <section> <num value="4734">SEC. 4734.</num> <heading>PENALTY FOR FRAUDULENT ELIGIBILITY.</heading> <chapeau>Section 1128B(a) (42 U.S.C. 1320a–7b(a)), as amended by section 217 of the Health Insurance Portability and Accountability Act of 1996 (Public Law 104–191; 110 Stat. 2008), is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking paragraph (6) and inserting the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>for a fee knowingly and willfully counsels or assists an individual to dispose of assets (including by any transfer in trust) in order tor the individual to become eligible for medical assistance under a State plan under title XIX, if disposing of the assets results in the imposition of a period of ineligibility for such assistance under section 1917(c),"; and</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in clause (ii) of the matter following such paragraph, by striking “<quotedText>failure, or conversion by any other person</quotedText>” and <page identifier="/us/stat/111/523">111 STAT. 523</page>inserting “<quotedText>failure, conversion, or provision of counsel or assistance by any other person</quotedText>”.</content></paragraph> </section> <section> <num value="4735">SEC. 4735.</num> <heading>TREATMENT OF CERTAIN SETTLEMENT PAYMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Notwithstanding any other provision of law, the payments described in subsection (b) shall not be considered income or resources in determining eligibility for, or the amount of benefits under, a State plan of medical assistance approved under title XIX of the Social Security Act.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Payments Described</inline>.—</heading><chapeau>The payments described in this subsection are—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>payments made from any fund established pursuant to a class settlement in the case of Susan Walker v. Bayer Corporation, et al., 96–C–5024 (N.D. Ill.); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>payments made pursuant to a release of all claims in a case—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>that is entered into in lieu of the class settlement referred to in paragraph (1); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>that is signed by all affected parties in such case on or before the later of—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>December 31, 1997, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>the date that is 270 days after the date on which such release is first sent to the persons (or the legal representative of such persons) to whom the payment is to be made.</content></clause> </subparagraph> </paragraph> </subsection> </section> </chapter> <chapter> <num value="5">CHAPTER 5—</num><heading>BENEFITS</heading> <section> <num value="4741">SEC. 4741.</num> <heading>ELIMINATION OF REQUIREMENT TO PAY FOR PRIVATE INSURANCE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Repeal of State Plan Provision</inline>.—</heading><chapeau>Section 1902(a)(25) (42 U.S.C. 1396a(a)(25)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking subparagraph (G); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by redesignating subparagraphs (H) and (I) as subparagraphs (G) and (H), respectively.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Making Provision Optional</inline>.—</heading><chapeau>Section 1906 (42 U.S.C. 1396e) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in subsection (a)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>For purposes of section 1902(a)(25)(G) and subject to subsection (d), each</quotedText>” and inserting “<quotedText>Each</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in paragraph (1), by striking “<quotedText>shall</quotedText>” and inserting “<quotedText>may</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>in paragraph (2), by striking “<quotedText>shall</quotedText>” and inserting “<quotedText>may</quotedText>”; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking subsection (d).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a note</ref>.</p></sidenote> shall take effect on the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="4742">SEC. 4742.</num> <heading>PHYSICIAN QUALIFICATION REQUIREMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 1903(i) (42 U.S.C. 1396b(i)) is amended by striking paragraph (12).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a note</ref>.</p></sidenote> (a) shall apply to services furnished on or after the date of the enactment of this Act.<page identifier="/us/stat/111/524">111 STAT. 524</page></content> </subsection> </section> <section> <num value="4743">SEC. 4743.</num> <heading>ELIMINATION OF REQUIREMENT OF PRIOR INSTITUTIONALIZATION WITH RESPECT TO HABILITATION SERVICES FURNISHED UNDER A WAIVER FOR HOME OR COMMUNITY-BASED SERVICES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 1915(c)(5) (42 U.S.C. 1396n(c)(5)) is amended, in the matter preceding subparagraph (A), by striking “<quotedText>, with respect to individuals who receive such services after discharge from a nursing facility or intermediate care facility for the mentally retarded</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396n">42 USC 1396n note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) apply to services furnished on or after October 1, 1997.</content> </subsection> </section> <section> <num value="4744">SEC. 4744.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396d">42 USC 1396d note</ref>.</p></sidenote> <heading>STUDY AND REPORT ON EPSDT BENEFIT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Study</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary of Health and Human Services, in consultation with Governors, directors of State medicaid programs, the American Academy of Actuaries, and representatives of appropriate provider and beneficiary organizations, shall conduct a study of the provision of early and periodic screening, diagnostic, and treatment services under the medicaid program under title XIX of the Social Security Act in accordance with the requirements of section 1905(r) of such Act (42 U.S.C. 1396d(r)).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Required contents</inline>.—</heading><content>The study conducted under paragraph (1) shall include examination of the actuarial value of the provision of such services under the medicaid program and an examination of the portions of such actuarial value that are attributable to paragraph (5) of section 1905(r) of such Act and to the second sentence of such section.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than 12 months after the date of the enactment of this Act, the Secretary of Health and Human Services shall submit a report to Congress on the results of the study conducted under subsection (a).</content> </subsection> </section> </chapter> <chapter> <num value="6">CHAPTER 6—</num><heading>ADMINISTRATION AND MISCELLANEOUS</heading> <section> <num value="4751">SEC. 4751.</num> <heading>ELIMINATION OF DUPLICATIVE INSPECTION OF CARE REQUIREMENTS FOR ICFS/MR AND MENTAL HOSPITALS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Mental Hospitals</inline>.—</heading><chapeau>Section 1902(a)(26) (42 U.S.C. 1396a(a)(26)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “provide— <quotedContent> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>with respect to each patient” and inserting “<quotedText>provide, with respect to each patient</quotedText>”; and</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking subparagraphs (B) and (C).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading>ICFS/MR.—</heading><chapeau>Section 1902(a)(31) (42 U.S.C. 1396a(a)(31)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “provide— <quotedContent> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>with respect to each patient” and inserting “<quotedText>provide, with respect to each patient</quotedText>”; and</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking subparagraphs (B) and (C).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section take effect on the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="4752">SEC. 4752.</num> <heading>ALTERNATIVE SANCTIONS FOR NONCOMPLIANT ICFS/MR.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 1902(i)(1)(B) (42 U.S.C. 1396a(i)(1)(B)) is amended by striking “<quotedText>provide</quotedText>” and inserting “<quotedText>establish alternative remedies if the State demonstrates to the <page identifier="/us/stat/111/525">111 STAT. 525</page>Secretary’s satisfaction that the alternative remedies are effective in deterring noncompliance and correcting deficiencies, and may provide</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a)<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a note</ref>.</p></sidenote> takes effect on the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="4753">SEC. 4753.</num> <heading>MODIFICATION OF MMIS REQUIREMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 1903(r) (42 U.S.C. 1396b(r)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking all that precedes paragraph (5) and inserting the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="r">“(r)</num><paragraph class="inline"><num value="1">(1)</num> <chapeau>In order to receive payments under subsection (a) for use of automated data systems in administration of the State plan under this title, a State must have in operation mechanized claims processing and information retrieval systems that meet the requirements of this subsection and that the Secretary has found—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>are adequate to provide efficient, economical, and effective administration of such State plan;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>are compatible with the claims processing and information retrieval systems used in the administration of title XVIII, and for this purpose—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>have a uniform identification coding system for providers, other payees, and beneficiaries under this title or title XVIII;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>provide liaison between States and carriers and intermediaries with agreements under title XVIII to facilitate timely exchange of appropriate data; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>provide for exchange of data between the States and the Secretary with respect to persons sanctioned under this title or title XVIII;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>are capable of providing accurate and timely data;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>are complying with the applicable provisions of part C of title XI;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>are designed to receive provider claims in standard formats to the extent specified by the Secretary; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>effective for claims filed on or after January 1, 1999, provide for electronic transmission of claims data in the format specified by the Secretary and consistent with the Medicaid Statistical Information System (MSIS) (including detailed individual enrollee encounter data and other information that the Secretary may find necessary).”;</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>in paragraph (5)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking subparagraph (B);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking all that precedes clause (i) and inserting the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>In order to meet the requirements of this paragraph, mechanized claims processing and information retrieval systems must meet the following requirements:”;</content></paragraph> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>in clause (iii), by striking “<quotedText>under paragraph (6)</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>by redesignating clauses (i) through (iii) as paragraphs (A) through (C); and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by striking paragraphs (6), (7), and (8).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><content>Section 1902(a)(25)(A)(ii) (42 U.S.C. 1396a(a)(25)(A)(ii)) is amended by striking all that follows “shall” and inserting the following: “be integrated with, and be <page identifier="/us/stat/111/526">111 STAT. 526</page>monitored as a part of the Secretary s review of, the State’s mechanized claims processing and information retrieval systems required under section 1903(r);”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>Except as otherwise specifically provided, the amendments made by this section shall take effect on January 1, 1998.</content> </subsection> </section> <section> <num value="4754">SEC. 4754.</num> <heading>FACILITATING IMPOSITION OF STATE ALTERNATIVE REMEDIES ON NONCOMPLIANT NURSING FACILITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 1919(h)(3)(D) (42 U.S.C. 1396r(h)(3)(D)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by inserting “<quotedText>and</quotedText>” at the end of clause (i);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<quotedText>, and</quotedText>” at the end of clause (ii) and inserting a period; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by striking clause (iii).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396r">42 USC 1396r note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by subsection (a) take effect on the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="4755">SEC. 4755.</num> <heading>REMOVAL OF NAME FROM NURSE AIDE REGISTRY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Medicare</inline>.—</heading><chapeau>Section 1819(g)(1) (42 U.S.C. 1395i–3(g)(1)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by redesignating subparagraph (D) as subparagraph (E), and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting after subparagraph (C) the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Removal of name from nurse aide registry</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Procedures.</p></sidenote> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of a finding of neglect under subparagraph (C), the State shall establish a procedure to permit a nurse aide to petition the State to have his or her name removed from the registry upon a determination by the State that—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the employment and personal history of the nurse aide does not reflect a pattern of abusive behavior or neglect; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the neglect involved in the original finding was a singular occurrence.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Timing of determination</inline>.—</heading><content>In no case shall a determination on a petition submitted under clause (i) be made prior to the expiration of the 1-year period beginning on the date on which the name of the petitioner was added to the registry under subparagraph (C).”.</content></clause> </subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Medicaid</inline>.—</heading><chapeau>Section 1919(g)(1) (42 U.S.C. 1396r(g)(1)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by redesignating subparagraph (D) as subparagraph (E), and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting after subparagraph (C) the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Removal of name from nurse aide registry</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Procedures.</p></sidenote> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of a finding of neglect under subparagraph (C), the State shall establish a procedure to permit a nurse aide to petition the State to have his or her name removed from the registry upon a determination by the State that—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the employment and personal history of the nurse aide does not reflect a pattern of abusive behavior or neglect; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the neglect involved in the original finding was a singular occurrence.</content></subclause> </clause> <page identifier="/us/stat/111/527">111 STAT. 527</page> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Timing of determination</inline>.—</heading><content>In no case shall a determination on a petition submitted under clause (i) be made prior to the expiration of the 1-year period beginning on the date on which the name of the petitioner was added to the registry under subparagraph (C).”.</content></clause> </subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Retroactive Review</inline>.—</heading><content>The procedures developed by a State<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395i–3">42 USC 1395i–3 note</ref>.</p></sidenote> under the amendments made by subsection (a) and (b) shall permit an individual to petition for a review of any finding made by a State under section 1819(g)(1)(C) or 1919(g)(1)(C) of the Social Security Act (42 U.S.C. 1395i–3(g)(1)(C) or 1396r(g)(1)(C)) after January 1, 1995.</content> </subsection> </section> <section> <num value="4756">SEC. 4756.</num> <heading>MEDICALLY ACCEPTED INDICATION.</heading> <chapeau>Section 1927(g)(1)(B)(i) (42 U.S.C. 1396r–8(g)(1)(B)(i)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>and</quotedText>” at the end of subclause (II),</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by redesignating subclause (III) as subclause (IV), and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by inserting after subclause (II) the following: <quotedContent> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>the DRUGDEX Information System; and”.</content></subclause> </quotedContent> </content></paragraph> </section> <section> <num value="4757">SEC. 4757.</num> <heading>CONTINUATION OF STATE-WIDE SECTION 1115 MEDICAID WAIVERS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 1115 (42 U.S.C. 1315) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num><paragraph class="inline"><num value="1">(1)</num> <content>The provisions of this subsection shall apply to the<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> extension of any State-wide comprehensive demonstration project (in this subsection referred to as ‘waiver project’) for which a waiver of compliance with requirements of title XIX is granted under subsection (a).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2)</num> <content>During the 6-month period ending 1 year before the date the waiver under subsection (a) with respect to a waiver project would otherwise expire, the chief executive officer of the State which is operating the project may submit to the Secretary a written request for an extension, of up to 3 years, of the project.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3)</num> <content>If the Secretary fails to respond to the request within 6 months after the date it is submitted, the request is deemed to have been granted.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="4">“(4)</num> <content>If such a request is granted, the deadline for submittal of a final report under the waiver project is deemed to have been extended until the date that is 1 year after the date the waiver project would otherwise have expired.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="5">“(5)</num> <content>The Secretary shall release an evaluation of each such<sidenote><p class="indent0 firstIndent0 fontsize8">Evaluation.</p></sidenote> project not later than 1 year after the date of receipt of the final report.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="6">“(6)</num> <content>Subject to paragraphs (4) and (7), the extension of a waiver project under this subsection shall be on the same terms and conditions (including applicable terms and conditions relating to quality and access of services, budget neutrality, data and reporting requirements, and special population protections) that applied to the project before its extension under this subsection.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="7">“(7)</num> <content>If an original condition of approval of a waiver project was that Federal expenditures under the project not exceed the Federal expenditures that would otherwise have been made, the Secretary shall take such steps as may be necessary to ensure that, in the extension of the project under this subsection, such condition continues to be met. In applying the previous sentence, <page identifier="/us/stat/111/528">111 STAT. 528</page>the Secretary shall take into account the Secretary’s best estimate of rates of change in expenditures at the time of the extension.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1315">42 USC 1315 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall apply to demonstration projects initially approved before, on, or after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="4758">SEC. 4758.</num> <heading>EXTENSION OF MORATORIUM.</heading> <content>Section 6408(a)(3) of the Omnibus Budget Reconciliation Act of 1989, as amended by section 13642 of the Omnibus Budget <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/103/2267">103 Stat 2267</ref>.</p></sidenote>Reconciliation Act of 1993, is amended by striking “<quotedText>December 31, 1995</quotedText>” and inserting “<quotedText>December 31, 2002</quotedText>”.</content> </section> <section> <num value="4759">SEC. 4759.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a note</ref>.</p></sidenote> <heading>EXTENSION OF EFFECTIVE DATE FOR STATE LAW AMENDMENT.</heading> <content>In the case of a State plan under title XIX of the Social Security Act which the Secretary of Health and Human Services determines requires State legislation in order for the plan to meet the additional requirements imposed by the amendments made by a provision of this subtitle, the State plan shall not be regarded as failing to comply with the requirements of such title solely on the basis of its failure to meet these additional requirements before the first day of the first calendar quarter beginning after the close of the first regular session of the State legislature that begins after the date of the enactment of this Act. For purposes of the previous sentence, in the case of a State that has a 2-year legislative session, each year of the session is considered to be a separate regular session of the State legislature.</content> </section> </chapter> </subtitle> <subtitle> <num value="I">Subtitle I—</num><heading>Programs of All-Inclusive Care for the Elderly (PACE)</heading> <section> <num value="4801">SEC. 4801.</num> <heading>COVERAGE OF PACE UNDER THE MEDICARE PROGRAM.</heading> <content>Title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) is amended by adding at the end the following new section: <quotedContent> <level> <heading class="centered">“<inline class="smallCaps">payments to, and coverage of benefits under, programs of all-inclusive care for the elderly (pace)</inline></heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395eee">42 USC 1395eee</ref>.</p></sidenote> <section> <num value="1894">“<inline class="smallCaps">Sec</inline>. 1894.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Receipt of Benefits Through Enrollment in Pace Program; Definitions for Pace Program Related Terms</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Benefits through enrollment in a pace program</inline>.—</heading><chapeau>In accordance with this section, in the case of an individual who is entitled to benefits under part A or enrolled under part B and who is a PACE program eligible individual (as defined in paragraph (5)) with respect to a PACE program offered by a PACE provider under a PACE program agreement—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the individual may enroll in the program under this section; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>so long as the individual is so enrolled and in accordance with regulations—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the individual shall receive benefits under this title solely through such program; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the PACE provider is entitled to payment under and in accordance with this section and such agreement for provision of such benefits.<page identifier="/us/stat/111/529">111 STAT. 529</page></content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Pace program defined</inline>.—</heading><chapeau>For purposes of this section, the term ‘PACE program’ means a program of all-inclusive care for the elderly that meets the following requirements:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Operation</inline>.—</heading><content>The entity operating the program is a PACE provider (as defined in paragraph (3)).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Comprehensive benefits</inline>.—</heading><content>The program provides comprehensive health care services to PACE program eligible individuals in accordance with the PACE program agreement and regulations under this section.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Transition</inline>.—</heading><content>In the case of an individual who is enrolled under the program under this section and whose enrollment ceases for any reason (including that the individual no longer qualifies as a PACE program eligible individual, the termination of a PACE program agreement, or otherwise), the program provides assistance to the individual in obtaining necessary transitional care through appropriate referrals and making the individual’s medical records available to new providers.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Pace provider defined</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of this section, the term ‘PACE provider’ means an entity that—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>subject to subparagraph (B), is (or is a distinct part of) a public entity or a private, nonprofit entity organized for charitable purposes under section 501(c)(3) of the Internal Revenue Code of 1986; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>has entered into a PACE program agreement with respect to its operation of a PACE program.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Treatment of private, for-profit providers</inline>.—</heading><chapeau>Clause (i) of subparagraph (A) shall not apply—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>to entities subject to a demonstration project waiver under subsection (h); and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>after the date the report under section 4804(b) of the Balanced Budget Act of 1997 is submitted, unless the Secretary determines that any of the findings described in subparagraph (A), (B), (C), or (D) of paragraph (2) of such section are true.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Pace program agreement defined</inline>.—</heading><content>For purposes of this section, the term ‘PACE program agreement’ means, with respect to a PACE provider, an agreement, consistent with this section, section 1934 (if applicable), and regulations promulgated to carry out such sections, between the PACE provider and the Secretary, or an agreement between the PACE provider and a State administering agency for the operation of a PACE program by the provider under such sections.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Pace program eligible individual defined</inline>.—</heading><chapeau>For purposes of this section, the term ‘PACE program eligible individual’ means, with respect to a PACE program, an individual who—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>is 55 years of age or older;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>subject to subsection (c)(4), is determined under subsection (c) to require the level of care required under the State medicaid plan for coverage of nursing facility services;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>resides in the service area of the PACE program; and<page identifier="/us/stat/111/530">111 STAT. 530</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>meets such other eligibility conditions as may be imposed under the PACE program agreement for the program under subsection (e)(2)(A)(ii).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Pace protocol</inline>.—</heading><content>For purposes of this section, the term ‘PACE protocol’ means the Protocol for the Program of All-inclusive Care for the Elderly (PACE), as published by On Lok, Inc., as of April 14, 1995, or any successor protocol that may be agreed upon between the Secretary and On Lok, Inc.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Pace demonstration waiver program defined</inline>.—</heading><chapeau>For purposes of this section, the term ‘PACE demonstration waiver program’ means a demonstration program under either of the following sections (as in effect before the date of their repeal):</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Section 603(c) of the Social Security Amendments of 1983 (Public Law 98–21), as extended by section 9220 of the Consolidated Omnibus Budget Reconciliation Act of 1985 (Public Law 99–272).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Section 9412(b) of the Omnibus Budget Reconciliation Act of 1986 (Public Law 99–509).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <heading><inline class="smallCaps">State administering agency defined</inline>.—</heading><content>For purposes of this section, the term ‘State administering agency’ means, with respect to the operation of a PACE program in a State, the agency of that State (which may be the single agency responsible for administration of the State plan under title XIX in the State) responsible for administering PACE program agreements under this section and section 1934 in the State.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">“(9)</num> <heading><inline class="smallCaps">Trial period defined</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>For purposes of this section, the term ‘trial period’ means, with respect to a PACE program operated by a PACE provider under a PACE program agreement, the first 3 contract years under such agreement with respect to such program.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Contracts.</p></sidenote> <heading><inline class="smallCaps">Treatment of entities previously operating pace demonstration waiver programs</inline>.—</heading><content>Each contract year (including a year occurring before the effective date of this section) during which an entity has operated a PACE demonstration waiver program shall be counted under subparagraph (A) as a contract year during which the entity operated a PACE program as a PACE provider under a PACE program agreement.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="10">“(10)</num> <heading><inline class="smallCaps">Regulations</inline>.—</heading><content>For purposes of this section, the term ‘regulations’ refers to interim final or final regulations promulgated under subsection (f) to carry out this section and section 1934.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Scope of Benefits; Beneficiary Safeguards</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Under a PACE program agreement, a PACE provider shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>provide to PACE program eligible individuals enrolled with the provider, regardless of source of payment and directly or under contracts with other entities, at a minimum—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>all items and services covered under this title (for individuals enrolled under this section) and all items and services covered under title XIX, but without any limitation or condition as to amount, duration, <page identifier="/us/stat/111/531">111 STAT. 531</page>or scope and without application of deductibles, copayments, coinsurance, or other cost-sharing that would otherwise apply under this title or such title, respectively; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>all additional items and services specified in regulations, based upon those required under the PACE protocol;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>provide such enrollees access to necessary covered items and services 24 hours per day, every day of the year;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>provide services to such enrollees through a comprehensive, multidisciplinary health and social services delivery system which integrates acute and long-term care services pursuant to regulations; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>specify the covered items and services that will not be provided directly by the entity, and to arrange for delivery of those items and services through contracts meeting the requirements of regulations.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Quality assurance; patient safeguards</inline>.—</heading><chapeau>The PACE program agreement shall require the PACE provider to have in effect at a minimum—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>a written plan of quality assurance and improvement, and procedures implementing such plan, in accordance with regulations; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>written safeguards of the rights of enrolled participants (including a patient bill of rights and procedures for grievances and appeals) in accordance with regulations and with other requirements of this title and Federal and State law that are designed for the protection of patients.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Eligibility Determinations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The determination of whether an individual is a PACE program eligible individual—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>shall be made under and in accordance with the PACE program agreement; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>who is entitled to medical assistance under title XIX, shall be made (or who is not so entitled, may be made) by the State administering agency.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Condition</inline>.—</heading><content>An individual is not a PACE program eligible individual (with respect to payment under this section) unless the individual’s health status has been determined by the Secretary or the State administering agency, in accordance with regulations, to be comparable to the health status of individuals who have participated in the PACE demonstration waiver programs. Such determination shall be based upon information on health status and related indicators (such as medical diagnoses and measures of activities of daily living, instrumental activities of daily living, and cognitive impairment) that are part of a uniform minimum data set collected by PACE providers on potential PACE program eligible individuals.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Annual eligibility recertifications</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subject to subparagraph (B), the determination described in subsection (a)(5)(B) for an individual shall be reevaluated at least annually.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Exception</inline>.—</heading><content>The requirement of annual reevaluation under subparagraph (A) may be waived during a period in accordance with regulations in those cases where the <page identifier="/us/stat/111/532">111 STAT. 532</page>State administering agency determines that there is no reasonable expectation of improvement or significant change in an individual’s condition during the period because of the severity of chronic condition, or degree of impairment of functional capacity of the individual involved.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Continuation of eligibility</inline>.—</heading><content>An individual who is a PACE program eligible individual may be deemed to continue to be such an individual notwithstanding a determination that the individual no longer meets the requirement of subsection (a)(5)(B) if, in accordance with regulations, in the absence of continued coverage under a PACE program the individual reasonably would be expected to meet such requirement within the succeeding 6-month period.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Enrollment; disenrollment</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Voluntary disenrollment at any time</inline>.—</heading><content>The enrollment and disenrollment of PACE program eligible individuals in a PACE program shall be pursuant to regulations and the PACE program agreement and shall permit enrollees to voluntarily disenroll without cause at any time.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Limitations on disenrollment</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Regulations promulgated by the Secretary under this section and section 1934, and the PACE program agreement, shall provide that the PACE program may not disenroll a PACE program eligible individual except—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>for nonpayment of premiums (if applicable) on a timely basis; or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>for engaging in disruptive or threatening behavior, as denned in such regulations (developed in close consultation with State administering agencies).</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">No disenrollment for noncompliant behavior</inline>.—</heading><content>Except as allowed under regulations promulgated to carry out clause (i)(II), a PACE program may not disenroll a PACE program eligible individual on the ground that the individual has engaged in noncompliant behavior if such behavior is related to a mental or physical condition of the individual. For purposes of the preceding sentence, the term ‘noncompliant behavior’ includes repeated noncompliance with medical advice and repeated failure to appear for appointments.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Timely review of proposed nonvoluntary disenrollment</inline>.—</heading><content>A proposed disenrollment, other than a voluntary disenrollment, shall be subject to timely review and final determination by the Secretary or by the State administering agency (as applicable), prior to the proposed disenrollment becoming effective.</content></clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Payments to PACE Providers on a Capitated Basis</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In the case of a PACE provider with a PACE program agreement under this section, except as provided in this subsection or by regulations, the Secretary shall make prospective monthly payments of a capitation amount for each PACE program eligible individual enrolled under the agreement under this section in the same manner and from the same sources as payments are made to a Medicare+Choice <page identifier="/us/stat/111/533">111 STAT. 533</page>organization under section 1853 (or, for periods beginning before January 1, 1999, to an eligible organization under a risk-sharing contract under section 1876). Such payments shall be subject to adjustment in the manner described in section 1853(a)(2) or section 1876(a)(1)(E), as the case may be.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Capitation amount</inline>.—</heading><content>The capitation amount to be applied under this subsection for a provider for a contract year shall be an amount specified in the PACE program agreement for the year. Such amount shall be based upon payment rates established for purposes of payment under section 1853 (or, for periods before January 1, 1999, for purposes of risk-sharing contracts under section 1876) and shall be adjusted to take into account the comparative frailty of PACE enrollees and such other factors as the Secretary determines to be appropriate. Such amount under such an agreement shall be computed in a manner so that the total payment level for all PACE program eligible individuals enrolled under a program is less than the projected payment under this title for a comparable population not enrolled under a PACE program.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">PACE Program Agreement</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Requirement</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary, in close cooperation<sidenote><p class="indent0 firstIndent0 fontsize8">Procedures.</p></sidenote> with the State administering agency, shall establish procedures for entering into, extending, and terminating PACE program agreements for the operation of PACE programs by entities that meet the requirements for a PACE provider under this section, section 1934, and regulations.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Numerical limitation</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The Secretary shall not permit the number of PACE providers with which agreements are in effect under this section or under section 9412(b) of the Omnibus Budget Reconciliation Act of 1986 to exceed—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>40 as of the date of the enactment of this section; or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>as of each succeeding anniversary of such date, the numerical limitation under this subparagraph for the preceding year plus 20.</content></subclause> <continuation class="indent0 fontsize10">Subclause (II) shall apply without regard to the actual<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> number of agreements in effect as of a previous anniversary date.</continuation> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Treatment of certain private, for-profit providers</inline>.—</heading><chapeau>The numerical limitation in clause (i) shall not apply to a PACE provider that—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>is operating under a demonstration project waiver under subsection (h); or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>was operating under such a waiver and subsequently qualifies for PACE provider status pursuant to subsection (a)(3)(B)(ii).</content></subclause> </clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Service area and eligibility</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>A PACE program agreement for a PACE program—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>shall designate the service area of the program;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>may provide additional requirements for individuals to qualify as PACE program eligible individuals with respect to the program;<page identifier="/us/stat/111/534">111 STAT. 534</page></content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>shall be effective for a contract year, but may be extended for additional contract years in the absence of a notice by a party to terminate and is subject to termination by the Secretary and the State administering agency at any time for cause (as provided under the agreement);</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>shall require a PACE provider to meet all applicable State and local laws and requirements; and</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>shall contain such additional terms and conditions as the parties may agree to, so long as such terms and conditions are consistent with this section and regulations.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Service area overlap</inline>.—</heading><content>In designating a service area under a PACE program agreement under subparagraph (A)(i), the Secretary (in consultation with the State administering agency) may exclude from designation an area that is already covered under another PACE program agreement, in order to avoid unnecessary duplication of services and avoid impairing the financial and service viability of an existing program.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Records.</p></sidenote> <heading><inline class="smallCaps">Data collection; development of outcome measures</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Data collection</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Under a PACE program agreement, the PACE provider shall—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>collect data;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>maintain, and afford the Secretary and the State administering agency access to, the records relating to the program, including pertinent financial, medical, and personnel records; and</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> <content>make available to the Secretary and the State administering agency reports that the Secretary finds (in consultation with State administering agencies) necessary to monitor the operation, cost, and effectiveness of the PACE program under this section and section 1934.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Requirements during trial period</inline>.—</heading><content>During the first 3 years of operation of a PACE program (either under this section or under a PACE demonstration waiver program), the PACE provider shall provide such additional data as the Secretary specifies in regulations in order to perform the oversight required under paragraph (4)(A).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Development of outcome measures</inline>.—</heading><content>Under a PACE program agreement, the PACE provider, the Secretary, and the State administering agency shall jointly cooperate in the development and implementation of health status and quality of life outcome measures with respect to PACE program eligible individuals.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Oversight</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Annual, close oversight during trial period</inline>.—</heading><chapeau>During the trial period (as defined in subsection (a)(9)) with respect to a PACE program operated by a PACE provider, the Secretary (in cooperation with the State administering agency) shall conduct a comprehensive annual review of the operation of the PACE program by <page identifier="/us/stat/111/535">111 STAT. 535</page>the provider in order to assure compliance with the requirements of this section and regulations. Such a review shall include—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>an on-site visit to the program site;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>comprehensive assessment of a provider’s fiscal soundness;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>comprehensive assessment of the provider’s capacity to provide all PACE services to all enrolled participants;</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>detailed analysis of the entity’s substantial compliance with all significant requirements of this section and regulations; and</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>any other elements the Secretary or State administering agency considers necessary or appropriate.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Continuing oversight</inline>.—</heading><content>After the trial period, the Secretary (in cooperation with the State administering agency) shall continue to conduct such review of the operation of PACE providers and PACE programs as may be appropriate, taking into account the performance level of a provider and compliance of a provider with all significant requirements of this section and regulations.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Disclosure</inline>.—</heading><content>The results of reviews under this<sidenote><p class="indent0 firstIndent0 fontsize8">Public information.</p></sidenote> paragraph shall be reported promptly to the PACE provider, along with any recommendations for changes to the provider’s program, and shall be made available to the public upon request.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Termination of pace provider agreements</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Under regulations—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the Secretary or a State administering agency may terminate a PACE program agreement for cause; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>a PACE provider may terminate an agreement after appropriate notice to the Secretary, the State agency, and enrollees.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Causes for termination</inline>.—</heading><chapeau>In accordance with regulations establishing procedures for termination of PACE program agreements, the Secretary or a State administering agency may terminate a PACE program agreement with a PACE provider for, among other reasons, the fact that—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <chapeau>the Secretary or State administering agency determines that—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>there are significant deficiencies in the quality of care provided to enrolled participants; or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the provider has failed to comply substantially with conditions for a program or provider under this section or section 1934; and</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the entity has failed to develop and successfully initiate, within 30 days of the date of the receipt of written notice of such a determination, a plan to correct the deficiencies, or has failed to continue implementation of such a plan.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Termination and transition procedures</inline>.—</heading><content>An entity whose PACE provider agreement is terminated <page identifier="/us/stat/111/536">111 STAT. 536</page>under this paragraph shall implement the transition procedures required under subsection (a)(2)(C).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Secretary’s oversight; enforcement authority</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Under regulations, if the Secretary determines (after consultation with the State administering agency) that a PACE provider is failing substantially to comply with the requirements of this section and regulations, the Secretary (and the State administering agency) may take any or all of the following actions:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>Condition the continuation of the PACE program agreement upon timely execution of a corrective action plan.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>Withhold some or all further payments under the PACE program agreement under this section or section 1934 with respect to PACE program services furnished by such provider until the deficiencies have been corrected.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>Terminate such agreement.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Application of intermediate sanctions</inline>.—</heading><content>Under regulations, the Secretary may provide for the application against a PACE provider of remedies described in section 1857(g)(2) (or, for periods before January 1, 1999, section 1876(i)(6)(B)) or 1903(m)(5)(B) in the case of violations by the provider of the type described in section 1857(g)(1) (or section 1876(i)(6)(A) for such periods) or 1903(m)(5)(A), respectively (in relation to agreements, enrollees, and requirements under this section or section 1934, respectively).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> <heading><inline class="smallCaps">Procedures for termination or imposition of sanctions</inline>.—</heading><content>Under regulations, the provisions of section 1857(h) (or for periods before January 1, 1999, section 1876(i)(9)) shall apply to termination and sanctions respecting a PACE program agreement and PACE provider under this subsection in the same manner as they apply to a termination and sanctions with respect to a contract and a Medicare+Choice organization under part C (or for such periods an eligible organization under section 1876).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <heading><inline class="smallCaps">Timely consideration of applications for pace program provider status</inline>.—</heading><content>In considering an application for PACE provider program status, the application shall be deemed approved unless the Secretary, within 90 days after the date of the submission of the application to the Secretary, either denies such request in writing or informs the applicant in writing with respect to any additional information that is needed in order to make a final determination with respect to the application. After the date the Secretary receives such additional information, the application shall be deemed approved unless the Secretary, within 90 days of such date, denies such request.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Regulations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall issue interim final or final regulations to carry out this section and section 1934.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Use of pace protocol</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In issuing such regulations, the Secretary shall, to the extent consistent with the provisions of this section, incorporate the requirements applied to <page identifier="/us/stat/111/537">111 STAT. 537</page>PACE demonstration waiver programs under the PACE protocol.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Flexibility</inline>.—</heading><chapeau>In order to provide for reasonable flexibility in adapting the PACE service delivery model to the needs of particular organizations (such as those in rural areas or those that may determine it appropriate to use nonstaff physicians according to State licensing law requirements) under this section and section 1934, the Secretary (in close consultation with State administering agencies) may modify or waive provisions of the PACE protocol so long as any such modification or waiver is not inconsistent with and would not impair the essential elements, objectives, and requirements of this section, but may not modify or waive any of the following provisions:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>The focus on frail elderly qualifying individuals who require the level of care provided in a nursing facility.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>The delivery of comprehensive, integrated acute and long-term care services.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>The interdisciplinary team approach to care management and service delivery.</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>Capitated, integrated financing that allows the provider to pool payments received from public and private programs and individuals.</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>The assumption by the provider of full financial risk.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Application of certain additional beneficiary and program protections</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In issuing such regulations and subject to subparagraph (B), the Secretary may apply with respect to PACE programs, providers, and agreements such requirements of part C (or, for periods before January 1, 1999, section 1876) and sections 1903(m) and 1932 relating to protection of beneficiaries and program integrity as would apply to Medicare+Choice organizations under part C (or for such periods eligible organizations under risk-sharing contracts under section 1876) and to medicaid managed care organizations under prepaid capitation agreements under section 1903(m).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Considerations</inline>.—</heading><chapeau>In issuing such regulations, the Secretary shall—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>take into account the differences between populations served and benefits provided under this section and under part C (or, for periods before January 1, 1999, section 1876) and section 1903(m);</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>not include any requirement that conflicts with carrying out PACE programs under this section; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>not include any requirement restricting the proportion of enrollees who are eligible for benefits under this title or title XIX.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Construction</inline>.—</heading><content>Nothing in this subsection shall be construed as preventing the Secretary from including in regulations provisions to ensure the health and safety of individuals enrolled in a PACE program under this section that are in addition to those otherwise provided under paragraphs (2) and (3).<page identifier="/us/stat/111/538">111 STAT. 538</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Waivers of Requirements</inline>.—</heading><chapeau>With respect to carrying out a PACE program under this section, the following requirements of this title (and regulations relating to such requirements) are waived and shall not apply:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>Section 1812, insofar as it limits coverage of institutional services.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>Sections 1813, 1814, 1833, and 1886, insofar as such sections relate to rules for payment for benefits.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>Sections 1814(a)(2)(B), 1814(a)(2)(C), and 1835(a)(2)(A), insofar as they limit coverage of extended care services or home health services.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>Section 186 l(i), insofar as it imposes a 3-day prior hospitalization requirement for coverage of extended care services.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>Paragraphs (1) and (9) of section 1862(a), insofar as they may prevent payment for PACE program services to individuals enrolled under PACE programs.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Demonstration Project for For-Profit Entities</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In order to demonstrate the operation of a PACE program by a private, for-profit entity, the Secretary (in close consultation with State administering agencies) shall grant waivers from the requirement under subsection (a)(3) that a PACE provider may not be a for-profit, private entity.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Similar terms and conditions</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided under subparagraph (B), and paragraph (1), the terms and conditions for operation of a PACE program by a provider under this subsection shall be the same as those for PACE providers that are nonprofit, private organizations.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Numerical limitation</inline>.—</heading><content>The number of programs for which waivers are granted under this subsection shall not exceed 10. Programs with waivers granted under this subsection shall not be counted against the numerical limitation specified in subsection (e)(1)(B).</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="i">“(i)</num> <heading><inline class="smallCaps">Miscellaneous Provisions</inline>.—</heading><content>Nothing in this section or section 1934 shall be construed as preventing a PACE provider from entering into contracts with other governmental or nongovernmental payers for the care of PACE program eligible individuals who are not eligible for benefits under part A, or enrolled under part B, or eligible for medical assistance under title XIX.”.</content> </subsection> </section> </level> </quotedContent> </content></section> <section> <num value="4802">SEC. 4802.</num> <heading>ESTABLISHMENT OF PACE PROGRAM AS MEDICAID STATE OPTION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Title XIX is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in section 1905(a) (42 U.S.C. 1396d(a)), as amended by section 4702(a)(1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>and</quotedText>” at the end of paragraph (25);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by redesignating paragraph (26) as paragraph (27); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by inserting after paragraph (25) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="26">“(26)</num> <content>services furnished under a PACE program under section 1934 to PACE program eligible individuals enrolled under the program under such section; and”;</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by redesignating section 1934, as redesignated by section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396v">42 USC 1396v</ref>.</p></sidenote>4732, as section 1935; and<page identifier="/us/stat/111/539">111 STAT. 539</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by inserting after section 1933, as added by such section, the following new section: <quotedContent> <level> <heading class="centered">“<inline class="smallCaps">program of all-inclusive care for the elderly (pace)</inline></heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396u–4">42 USC 1396u–4</ref>.</p></sidenote> <section> <num value="1934">“<inline class="smallCaps">Sec</inline>. 1934.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">State Option</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>A State may elect to provide medical assistance under this section with respect to PACE program services to PACE program eligible individuals who are eligible for medical assistance under the State plan and who are enrolled in a PACE program under a PACE program agreement. Such individuals need not be eligible for benefits under part A, or enrolled under part B, of title XVIII to be eligible to enroll under this section. In the case of an individual enrolled with a PACE program pursuant to such an election—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the individual shall receive benefits under the plan solely through such program, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the PACE provider shall receive payment in accordance with the PACE program agreement for provision of such benefits.</content></subparagraph> <continuation class="indent0 fontsize10">A State may establish a numerical limit on the number of individuals who may be enrolled in a PACE program under a PACE program agreement.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">PACE Program Defined</inline>.—</heading><chapeau>For purposes of this section, the term ‘PACE program’ means a program of all-inclusive care for the elderly that meets the following requirements:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Operation</inline>.—</heading><content>The entity operating the program is a PACE provider (as defined in paragraph (3)).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Comprehensive benefits</inline>.—</heading><content>The program provides comprehensive health care services to PACE program eligible individuals in accordance with the PACE program agreement and regulations under this section.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Transition</inline>.—</heading><content>In the case of an individual who is enrolled under the program under this section and whose enrollment ceases for any reason (including that the individual no longer qualifies as a PACE program eligible individual, the termination of a PACE program agreement, or otherwise), the program provides assistance to the individual in obtaining necessary transitional care through appropriate referrals and making the individual’s medical records available to new providers.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">PACE provider defined</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of this section, the term ‘PACE provider’ means an entity that—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>subject to subparagraph (B), is (or is a distinct part of) a public entity or a private, nonprofit entity organized for charitable purposes under section 501(c)(3) of the Internal Revenue Code of 1986, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>has entered into a PACE program agreement with respect to its operation of a PACE program.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Treatment of private, for-profit providers</inline>.—</heading><chapeau>Clause (i) of subparagraph (A) shall not apply—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>to entities subject to a demonstration project waiver under subsection (h); and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>after the date the report under section 4804(b) of the Balanced Budget Act of 1997 is submitted, unless the Secretary determines that any of the findings <page identifier="/us/stat/111/540">111 STAT. 540</page>described in subparagraph (A), (B), (C), or (D) of paragraph (2) of such section are true.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">PACE program agreement defined</inline>.—</heading><content>For purposes of this section, the term ‘PACE program agreement’ means, with respect to a PACE provider, an agreement, consistent with this section, section 1894 (if applicable), and regulations promulgated to carry out such sections, among the PACE provider, the Secretary, and a State administering agency for the operation of a PACE program by the provider under such sections.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">PACE program eligible individual defined</inline>.—</heading><chapeau>For purposes of this section, the term ‘PACE program eligible individual’ means, with respect to a PACE program, an individual who—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>is 55 years of age or older;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>subject to subsection (c)(4), is determined under subsection (c) to require the level of care required under the State medicaid plan for coverage of nursing facility services;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>resides in the service area of the PACE program; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>meets such other eligibility conditions as may be imposed under the PACE program agreement for the program under subsection (e)(2)(A)(ii).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">PACE protocol</inline>.—</heading><content>For purposes of this section, the term ‘PACE protocol’ means the Protocol for the Program of All-inclusive Care for the Elderly (PACE), as published by On Lok, Inc., as of April 14, 1995, or any successor protocol that may be agreed upon between the Secretary and On Lok, Inc.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">PACE demonstration waiver program defined</inline>.—</heading><chapeau>For purposes of this section, the term ‘PACE demonstration waiver program’ means a demonstration program under either of the following sections (as in effect before the date of their repeal):</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Section 603(c) of the Social Security Amendments of 1983 (Public Law 98–21), as extended by section 9220 of the Consolidated Omnibus Budget Reconciliation Act of 1985 (Public Law 99–272).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Section 9412(b) of the Omnibus Budget Reconciliation Act of 1986 (Public Law 99–509).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <heading><inline class="smallCaps">State administering agency defined</inline>.—</heading><content>For purposes of this section, the term ‘State administering agency means, with respect to the operation of a PACE program in a State, the agency of that State (which may be the single agency responsible for administration of the State plan under this title in the State) responsible for administering PACE program agreements under this section and section 1894 in the State.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">“(9)</num> <heading><inline class="smallCaps">Trial period defined</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>For purposes of this section, the term ‘trial period’ means, with respect to a PACE program operated by a PACE provider under a PACE program agreement, the first 3 contract years under such agreement with respect to such program.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Treatment of entities previously operating pace demonstration waiver programs</inline>.—</heading><content>Each contract year (including a year occurring before the effective date <page identifier="/us/stat/111/541">111 STAT. 541</page>of this section) during which an entity has operated a PACE demonstration waiver program shall be counted under subparagraph (A) as a contract year during which the entity operated a PACE program as a PACE provider under a PACE program agreement.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="10">“(10)</num> <heading><inline class="smallCaps">Regulations</inline>.—</heading><content>For purposes of this section, the term ‘regulations’ refers to interim final or final regulations promulgated under subsection (f) to carry out this section and section 1894.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Scope of Benefits; Beneficiary Safeguards</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Under a PACE program agreement, a PACE provider shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>provide to PACE program eligible individuals, regardless of source of payment and directly or under contracts with other entities, at a minimum—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>all items and services covered under title XVIII (for individuals enrolled under section 1894) and all items and services covered under this title, but without any limitation or condition as to amount, duration, or scope and without application of deductibles, copayments, coinsurance, or other cost-sharing that would otherwise apply under such title or this title, respectively; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>all additional items and services specified in regulations, based upon those required under the PACE protocol;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>provide such enrollees access to necessary covered items and services 24 hours per day, every day of the year;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>provide services to such enrollees through a comprehensive, multidisciplinary health and social services delivery system which integrates acute and long-term care services pursuant to regulations; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>specify the covered items and services that will not be provided directly by the entity, and to arrange for delivery of those items and services through contracts meeting the requirements of regulations.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Quality assurance; patient safeguards</inline>.—</heading><chapeau>The PACE program agreement shall require the PACE provider to have in effect at a minimum—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>a written plan of quality assurance and improvement, and procedures implementing such plan, in accordance with regulations, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>written safeguards of the rights of enrolled participants (including a patient bill of rights and procedures for grievances and appeals) in accordance with regulations and with other requirements of this title and Federal and State law designed for the protection of patients.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Eligibility Determinations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The determination of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>whether an individual is a PACE program eligible individual shall be made under and in accordance with the PACE program agreement, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>who is entitled to medical assistance under this title shall be made (or who is not so entitled, may be made) by the State administering agency.<page identifier="/us/stat/111/542">111 STAT. 542</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Condition</inline>.—</heading><content>An individual is not a PACE program eligible individual (with respect to payment under this section) unless the individual’s health status has been determined by the Secretary or the State administering agency, in accordance with regulations, to be comparable to the health status of individuals who have participated in the PACE demonstration waiver programs. Such determination shall be based upon information on health status and related indicators (such as medical diagnoses and measures of activities of daily living, instrumental activities of daily living, and cognitive impairment) that are part of a uniform minimum data set collected by PACE providers on potential eligible individuals.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Annual eligibility recertifications</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subject to subparagraph (B), the determination described in subsection (a)(5)(B) for an individual shall be reevaluated at least annually.</content></subparagraph><subparagraph class="indent2 fontsize10"> <num value="B">“(B)</num> <heading><inline class="smallCaps">Exception</inline>.—</heading><content>The requirement of annual reevaluation under subparagraph (A) may be waived during a period in accordance with regulations in those cases in which the State administering agency determines that there is no reasonable expectation of improvement or significant change in an individual’s condition during the period because of the severity of chronic condition, or degree of impairment of functional capacity of the individual involved.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Continuation of eligibility</inline>.—</heading><content>An individual who is a PACE program eligible individual may be deemed to continue to be such an individual notwithstanding a determination that the individual no longer meets the requirement of subsection (a)(5)(B) if, in accordance with regulations, in the absence of continued coverage under a PACE program the individual reasonably would be expected to meet such requirement within the succeeding 6-month period.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Enrollment; disenrollment</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Voluntary disenrollment at any time</inline>.—</heading><content>The enrollment and disenrollment of PACE program eligible individuals in a PACE program shall be pursuant to regulations and the PACE program agreement and shall permit enrollees to voluntarily disenroll without cause at any time.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Limitations on disenrollment</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Regulations promulgated by the Secretary under this section and section 1894, and the PACE program agreement, shall provide that the PACE program may not disenroll a PACE program eligible individual except—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>for nonpayment of premiums (if applicable) on a timely basis; or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>for engaging in disruptive or threatening behavior, as defined in such regulations (developed in close consultation with State administering agencies).</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">No disenrollment for noncompliant behavior</inline>.—</heading><content>Except as allowed under regulations promulgated to carry out clause (i)(II), a PACE program may not disenroll a PACE program eligible individual on the ground that the individual has engaged in noncompliant behavior if such behavior <page identifier="/us/stat/111/543">111 STAT. 543</page>is related to a mental or physical condition of the individual. For purposes of the preceding sentence, the term ‘noncompliant behavior includes repeated noncompliance with medical advice and repeated failure to appear for appointments.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Timely review of proposed nonvoluntary disenrollment</inline>.—</heading><content>A proposed disenrollment, other than a voluntary disenrollment, shall be subject to timely review and final determination by the Secretary or by the State administering agency (as applicable), prior to the proposed disenrollment becoming effective.</content></clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Payments to PACE Providers on a Capitated Basis</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In the case of a PACE provider with a PACE program agreement under this section, except as provided in this subsection or by regulations, the State shall make prospective monthly payments of a capitation amount for each PACE program eligible individual enrolled under the agreement under this section.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Capitation amount</inline>.—</heading><content>The capitation amount to be applied under this subsection for a provider for a contract year shall be an amount specified in the PACE program agreement for the year. Such amount shall be an amount, specified under the PACE agreement, which is less than the amount that would otherwise have been made under the State plan if the individuals were not so enrolled and shall be adjusted to take into account the comparative frailty of PACE enrollees and such other factors as the Secretary determines to be appropriate. The payment under this section shall be in addition to any payment made under section 1894 for individuals who are enrolled in a PACE program under such section.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">PACE Program Agreement</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Requirement</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary, in close cooperation<sidenote><p class="indent0 firstIndent0 fontsize8">Procedures.</p></sidenote> with the State administering agency, shall establish procedures for entering into, extending, and terminating PACE program agreements for the operation of PACE programs by entities that meet the requirements for a PACE provider under this section, section 1894, and regulations.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Numerical limitation</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The Secretary shall not permit the number of PACE providers with which agreements are in effect under this section or under section 9412(b) of the Omnibus Budget Reconciliation Act of 1986 to exceed—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>40 as of the date of the enactment of this section, or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>as of each succeeding anniversary of such date, the numerical limitation under this subparagraph for the preceding year plus 20.</content></subclause> <continuation class="indent0 fontsize10">Subclause (II) shall apply without regard to the actual<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> number of agreements in effect as of a previous anniversary date.</continuation> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Treatment of certain private, for-profit providers</inline>.—</heading><chapeau>The numerical limitation in clause (i) shall not apply to a PACE provider that—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>is operating under a demonstration project waiver under subsection (h), or<page identifier="/us/stat/111/544">111 STAT. 544</page></content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>was operating under such a waiver and subsequently qualifies for PACE provider status pursuant to subsection (a)(3)(B)(ii).</content></subclause> </clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Service area and eligibility</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>A PACE program agreement for a PACE program—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>shall designate the service area of the program;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>may provide additional requirements for individuals to qualify as PACE program eligible individuals with respect to the program;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>shall be effective for a contract year, but may be extended for additional contract years in the absence of a notice by a party to terminate, and is subject to termination by the Secretary and the State administering agency at any time for cause (as provided under the agreement);</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>shall require a PACE provider to meet all applicable State and local laws and requirements; and</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>shall contain such additional terms and conditions as the parties may agree to, so long as such terms and conditions are consistent with this section and regulations.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Service area overlap</inline>.—</heading><content>In designating a service area under a PACE program agreement under subparagraph (A)(i), the Secretary (in consultation with the State administering agency) may exclude from designation an area that is already covered under another PACE program agreement, in order to avoid unnecessary duplication of services and avoid impairing the financial and service viability of an existing program.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Records.</p></sidenote> <heading><inline class="smallCaps">Data collection; development of outcome measures</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Data collection</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Under a PACE program agreement, the PACE provider shall—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>collect data;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>maintain, and afford the Secretary and the State administering agency access to, the records relating to the program, including pertinent financial, medical, and personnel records; and</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> <content>submit to the Secretary and the State administering agency such reports as the Secretary finds (in consultation with State administering agencies) necessary to monitor the operation, cost, and effectiveness of the PACE program.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Requirements during trial period</inline>.—</heading><content>During the first 3 years of operation of a PACE program (either under this section or under a PACE demonstration waiver program), the PACE provider shall provide such additional data as the Secretary specifies in regulations in order to perform the oversight required under paragraph (4)(A).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Development of outcome measures</inline>.—</heading><content>Under a PACE program agreement, the PACE provider, the Secretary, and the State administering agency shall jointly cooperate in the development and implementation of health <page identifier="/us/stat/111/545">111 STAT. 545</page>status and quality of life outcome measures with respect to PACE program eligible individuals.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Oversight</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Annual, close oversight during trial period</inline>.—</heading><chapeau>During the trial period (as defined in subsection (a)(9)) with respect to a PACE program operated by a PACE provider, the Secretary (in cooperation with the State administering agency) shall conduct a comprehensive annual review of the operation of the PACE program by the provider in order to assure compliance with the requirements of this section and regulations. Such a review shall include—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>an onsite visit to the program site;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>comprehensive assessment of a provider’s fiscal soundness;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>comprehensive assessment of the provider’s capacity to provide all PACE services to all enrolled participants;</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>detailed analysis of the entity’s substantial compliance with all significant requirements of this section and regulations; and</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>any other elements the Secretary or the State administering agency considers necessary or appropriate.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Continuing oversight</inline>.—</heading><content>After the trial period, the Secretary (in cooperation with the State administering agency) shall continue to conduct such review of the operation of PACE providers and PACE programs as may be appropriate, taking into account the performance level of a provider and compliance of a provider with all significant requirements of this section and regulations.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Disclosure</inline>.—</heading><content>The results of reviews under this<sidenote><p class="indent0 firstIndent0 fontsize8">Public information.</p></sidenote> paragraph shall be reported promptly to the PACE provider, along with any recommendations for changes to the provider’s program, and shall be made available to the public upon request.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Termination of pace provider agreements</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Under regulations—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the Secretary or a State administering agency may terminate a PACE program agreement for cause, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>a PACE provider may terminate such an agreement after appropriate notice to the Secretary, the State administering agency, and enrollees.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Causes for termination</inline>.—</heading><chapeau>In accordance with regulations establishing procedures for termination of PACE program agreements, the Secretary or a State administering agency may terminate a PACE program agreement with a PACE provider for, among other reasons, the fact that—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <chapeau>the Secretary or State administering agency determines that—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>there are significant deficiencies in the quality of care provided to enrolled participants; or<page identifier="/us/stat/111/546">111 STAT. 546</page></content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the provider has failed to comply substantially with conditions for a program or provider under this section or section 1894; and</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the entity has failed to develop and successfully initiate, within 30 days of the date of the receipt of written notice of such a determination, a plan to correct the deficiencies, or has failed to continue implementation of such a plan.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Termination and transition procedures</inline>.—</heading><content>An entity whose PACE provider agreement is terminated under this paragraph shall implement the transition procedures required under subsection (a)(2)(C).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Secretary’s oversight; enforcement authority</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Under regulations, if the Secretary determines (after consultation with the State administering agency) that a PACE provider is failing substantially to comply with the requirements of this section and regulations, the Secretary (and the State administering agency) may take any or all of the following actions:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>Condition the continuation of the PACE program agreement upon timely execution of a corrective action plan.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>Withhold some or all further payments under the PACE program agreement under this section or section 1894 with respect to PACE program services furnished by such provider until the deficiencies have been corrected.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>Terminate such agreement.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Application of intermediate sanctions</inline>.—</heading><content>Under regulations, the Secretary may provide for the application against a PACE provider of remedies described in section 1857(g)(2) (or, for periods before January 1, 1999, section 1876(i)(6)(B)) or 1903(m)(5)(B) in the case of violations by the provider of the type described in section 1857(g)(1) (or 1876(i)(6)(A) for such periods) or 1903(m)(5)(A), respectively (in relation to agreements, enrollees, and requirements under section 1894 or this section, respectively).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> <heading><inline class="smallCaps">Procedures for termination or imposition of sanctions</inline>.—</heading><content>Under regulations, the provisions of section 1857(h) (or for periods before January 1, 1999, section 1876(i)(9)) shall apply to termination and sanctions respecting a PACE program agreement and PACE provider under this subsection in the same manner as they apply to a termination and sanctions with respect to a contract and a Medicare+Choice organization under part C of title XVIII (or for such periods an eligible organization under section 1876).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <heading><inline class="smallCaps">Timely consideration of applications for pace program provider status</inline>.—</heading><content>In considering an application for PACE provider program status, the application shall be deemed approved unless the Secretary, within 90 days after the date of the submission of the application to the Secretary, either denies such request in writing or informs the applicant in writing with respect to any additional information that is needed in order to make a final determination with respect to the application. After the date the Secretary receives such additional information, the application shall be deemed <page identifier="/us/stat/111/547">111 STAT. 547</page>approved unless the Secretary, within 90 days of such date, denies such request.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Regulations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall issue interim final or final regulations to carry out this section and section 1894.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Use of pace protocol</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In issuing such regulations, the Secretary shall, to the extent consistent with the provisions of this section, incorporate the requirements applied to PACE demonstration waiver programs under the PACE protocol.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Flexibility</inline>.—</heading><chapeau>In order to provide for reasonable flexibility in adapting the PACE service delivery model to the needs of particular organizations (such as those in rural areas or those that may determine it appropriate to use nonstaff physicians according to State licensing law requirements) under this section and section 1894, the Secretary (in close consultation with State administering agencies) may modify or waive provisions of the PACE protocol so long as any such modification or waiver is not inconsistent with and would not impair the essential elements, objectives, and requirements of this section, but may not modify or waive any of the following provisions:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>The focus on frail elderly qualifying individuals who require the level of care provided in a nursing facility.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>The delivery of comprehensive, integrated acute and long-term care services.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>The interdisciplinary team approach to care management and service delivery.</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>Capitated, integrated financing that allows the provider to pool payments received from public and private programs and individuals.</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>The assumption by the provider of full financial risk.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Application of certain additional beneficiary and program protections</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In issuing such regulations and subject to subparagraph (B), the Secretary may apply with respect to PACE programs, providers, and agreements such requirements of part C of title XVIII (or, for periods before January 1, 1999, section 1876) and sections 1903(m) and 1932 relating to protection of beneficiaries and program integrity as would apply to Medicare+Choice organizations under such part C (or for such periods eligible organizations under risk-sharing contracts under section 1876) and to medicaid managed care organizations under prepaid capitation agreements under section 1903(m).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Considerations</inline>.—</heading><chapeau>In issuing such regulations, the Secretary shall—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>take into account the differences between populations served and benefits provided under this section and under part C of title XVIII (or, for periods before January 1, 1999, section 1876) and section 1903(m);</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>not include any requirement that conflicts with carrying out PACE programs under this section; and<page identifier="/us/stat/111/548">111 STAT. 548</page></content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>not include any requirement restricting the proportion of enrollees who are eligible for benefits under this title or title XVIII.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Construction</inline>.—</heading><content>Nothing in this subsection shall be construed as preventing the Secretary from including in regulations provisions to ensure the health and safety of individuals enrolled in a PACE program under this section that are in addition to those otherwise provided under paragraphs (2) and (3).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Waivers of requirements</inline>.—</heading><chapeau>With respect to carrying out a PACE program under this section, the following requirements of this title (and regulations relating to such requirements) shall not apply:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>Section 1902(a)(1), relating to any requirement that PACE programs or PACE program services be provided in all areas of a State.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>Section 1902(a)(10), insofar as such section relates to comparability of services among different population groups.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>Sections 1902(a)(23) and 1915(b)(4), relating to freedom of choice of providers under a PACE program.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>Section 1903(m)(2)(A), insofar as it restricts a PACE provider from receiving prepaid capitation payments.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>Such other provisions of this title that, as added or amended by the Balanced Budget Act of 1997, the Secretary determines are inapplicable to carrying out a PACE program under this section.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Demonstration Project for For-Profit Entities</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In order to demonstrate the operation of a PACE program by a private, for-profit entity, the Secretary (in close consultation with State administering agencies) shall grant waivers from the requirement under subsection (a)(3) that a PACE provider may not be a for-profit, private entity.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Similar terms and conditions</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided under subparagraph (B), and paragraph (1), the terms and conditions for operation of a PACE program by a provider under this subsection shall be the same as those for PACE providers that are nonprofit, private organizations.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Numerical limitation</inline>.—</heading><content>The number of programs for which waivers are granted under this subsection shall not exceed 10. Programs with waivers granted under this subsection shall not be counted against the numerical limitation specified in subsection (e)(1)(B).</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="i">“(i)</num> <heading><inline class="smallCaps">Post-Eligibility Treatment of Income</inline>.—</heading><content>A State may provide for post-eligibility treatment of income for individuals enrolled in PACE programs under this section in the same manner as a State treats post-eligibility income for individuals receiving services under a waiver under section 1915(c).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="j">“(j)</num> <heading><inline class="smallCaps">Miscellaneous Provisions</inline>.—</heading><content>Nothing in this section or section 1894 shall be construed as preventing a PACE provider from entering into contracts with other governmental or nongovernmental payers for the care of PACE program eligible individuals who are not eligible for benefits under part A, or enrolled under part B, of title XVIII or eligible for medical assistance under this title.”.</content> </subsection> </section> </level> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—<page identifier="/us/stat/111/549">111 STAT. 549</page></heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>Section 1924(a)(5) (42 U.S.C. 1396r–5(a)(5)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in the heading, by striking “<quotedText><inline class="smallCaps">from organizations receiving certain waivers</inline></quotedText>” and inserting “<quotedText><inline class="smallCaps">under pace programs</inline></quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking “<quotedText>from any organization</quotedText>” and all that follows and inserting “<quotedText>under a PACE demonstration waiver program (as defined in section 1934(a)(7)) or under a PACE program under section 1934 or 1894.</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Section 1903(f)(4)(C) (42 U.S.C. 1396b(f)(4)(C)) is amended by inserting “<quotedText>or who is a PACE program eligible individual enrolled in a PACE program under section 1934,</quotedText>” after “section 1902(a)(10)(A),”.</content></paragraph> </subsection> </section> <section> <num value="4803">SEC. 4803.</num> <heading>EFFECTIVE DATE; TRANSITION.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395eee">42 USC 1395eee note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Timely Issuance of Regulations; Effective Date</inline>.—</heading><content>The Secretary of Health and Human Services shall promulgate regulations to carry out this subtitle in a timely manner. Such regulations shall be designed so that entities may establish and operate PACE programs under sections 1894 and 1934 of the Social Security Act (as added by sections 4801 and 4802 of this subtitle) for periods beginning not later than 1 year after the date of the enactment of this Act.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Expansion and Transition for PACE Demonstration Project Waivers</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Expansion in current number and extension of demonstration projects</inline>.—</heading><chapeau>Section 9412(b) of the Omnibus Budget Reconciliation Act of 1986, as amended by section 4118(g) of the Omnibus Budget Reconciliation Act of 1987,<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/100/2062">100 Stat. 2062</ref>.</p></sidenote> is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in paragraph (1), by inserting before the period at the end the following: “, except that the Secretary shall grant waivers of such requirements to up to the applicable numerical limitation specified in sections 1894(e)(1)(B) and 1934(e)(1)(B) of the Social Security Act”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>in paragraph (2)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>in subparagraph (A), by striking “<quotedText>, including permitting the organization to assume progressively (over the initial 3-year period of the waiver) the full financial risk</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>in subparagraph (C), by adding at the end the following: “<quotedText>In granting further extensions, an organization shall not be required to provide for reporting of information which is only required because of the demonstration nature of the project.</quotedText>”.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Elimination of replication requirement</inline>.—</heading><content>Section 9412(b)(2)(B) of such Act, as so amended, shall not apply to waivers granted under such section after the date of the enactment of this Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Timely consideration of applications</inline>.—</heading><content>In considering an application for waivers under such section before the effective date of the repeals under subsection (d), subject to the numerical limitation under the amendment made by paragraph (1), the application shall be deemed approved unless the Secretary of Health and Human Services, within 90 days after the date of its submission to the Secretary, either denies such request in writing or informs the applicant in writing <page identifier="/us/stat/111/550">111 STAT. 550</page>with respect to any additional information which is needed in order to make a final determination with respect to the application. After the date the Secretary receives such additional information, the application shall be deemed approved unless the Secretary, within 90 days of such date, denies such request.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Priority and Special Consideration in Application</inline>.—</heading><chapeau>During the 3-year period beginning on the date of the enactment of this Act:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Provider status</inline>.—</heading><chapeau>The Secretary of Health and Human Services shall give priority in processing applications of entities to qualify as PACE programs under section 1894 or 1934 of the Social Security Act—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>first, to entities that are operating a PACE demonstration waiver program (as defined in sections 1894(a)(7) and 1934(a)(7) of such Act); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>then to entities that have applied to operate such a program as of May 1, 1997.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">New waivers</inline>.—</heading><chapeau>The Secretary shall give priority, in the awarding of additional waivers under section 9412(b) of the Omnibus Budget Reconciliation Act of 1986—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>to any entities that have applied for such waivers under such section as of May 1, 1997; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>to any entity that, as of May 1, 1997, has formally contracted with a State to provide services for which payment is made on a capitated basis with an understanding that the entity was seeking to become a PACE provider.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Special consideration</inline>.—</heading><content>The Secretary shall give special consideration, in the processing of applications described in paragraph (1) and the awarding of waivers described in paragraph (2), to an entity which as of May 1, 1997, through formal activities (such as entering into contracts for feasibility studies) has indicated a specific intent to become a PACE provider.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Repeal of Current PACE Demonstration Project Waiver Authority</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Subject to paragraph (2), the following provisions of law are repealed:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Section 603(c) of the Social Security Amendments <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/97/166">97 Stat. 166</ref>.</p></sidenote>of 1983 (Public Law 98–21).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Section 9220 of the Consolidated Omnibus Budget <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/100/183">100 Stat. 183</ref>.</p></sidenote>Reconciliation Act of 1985 (Public Law 99–272).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>Section 9412(b) of the Omnibus Budget Reconciliation<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/100/2062">100 Stat. 2062</ref>.</p></sidenote> Act of 1986 (Public Law 99–509).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Delay in application to current waivers</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subject to subparagraph (B), in the case of waivers granted with respect to a PACE program before the initial effective date of regulations described in subsection (a), the repeals made by paragraph (1) shall not apply until the end of a transition period (of up to 24 months) that begins on the initial effective date of such regulations, and that allows sufficient time for an orderly transition from demonstration project authority to general authority provided under the amendments made by this subtitle.<page identifier="/us/stat/111/551">111 STAT. 551</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">State option to seek extension of current period</inline>.—</heading><content>A State may elect to maintain the PACE programs which (as of the date of the enactment of this Act) were operating in the State under the authority described in paragraph (1) until a date (specified by the State) that is not later than 3 years after the initial effective date of regulations described in subsection (a). If a State makes such an election, the repeals made by paragraph (1) shall not apply to the programs until the date so specified, but only so long as such programs continue to operate under the same terms and conditions as apply to such programs as of the date of the enactment of this Act, and subparagraph (A) shall not apply to such programs.</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="4804">SEC. 4804.</num> <heading>STUDY AND REPORTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Study</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395eee">42 USC 1395eee note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary of Health and Human Services (in close consultation with State administering agencies, as defined in sections 1894(a)(8) and 1934(a)(8) of the Social Security Act) shall conduct a study of the quality and cost of providing PACE program services under the medicare and medicaid programs under the amendments made by this subtitle.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Study of private, for-profit providers</inline>.—</heading><content>Such study shall specifically compare the costs, quality, and access to services by entities that are private, for-profit entities operating under demonstration projects waivers granted under sections 1894(h) and 1934(h) of the Social Security Act with the costs, quality, and access to services of other PACE providers.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Report</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395eee">42 USC 1395eee note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Not later than 4 years after the date of the enactment of this Act, the Secretary shall provide for a report to Congress on the impact of such amendments on quality and cost of services. The Secretary shall include in such report such recommendations for changes in the operation of such amendments as the Secretary deems appropriate.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Treatment of private, for-profit providers</inline>.—</heading><chapeau>The report shall include specific findings on whether any of the following findings is true:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>The number of covered lives enrolled with entities operating under demonstration project waivers under sections 1894(h) and 1934(h) of the Social Security Act is fewer than 800 (or such lesser number as the Secretary may find statistically sufficient to make determinations respecting findings described in the succeeding subparagraphs).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>The population enrolled with such entities is less frail than the population enrolled with other PACE providers.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>Access to or quality of care for individuals enrolled with such entities is lower than such access or quality for individuals enrolled with other PACE providers.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>The application of such section has resulted in an increase in expenditures under the medicare or medicaid programs above the expenditures that would have been made if such section did not apply.<page identifier="/us/stat/111/552">111 STAT. 552</page></content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395b–6">42 USC 1395b–6 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Information Included in Annual Recommendations</inline>.—</heading><content>The Medicare Payment Advisory Commission shall include in its annual report under section 1805(b)(1)(B) of the Social Security Act recommendations on the methodology and level of payments made to PACE providers under sections 1894(d) and 1934(d) of such Act and on the treatment of private, for-profit entities as PACE providers.</content> </subsection> </section> </subtitle> <subtitle> <num value="J">Subtitle J—</num><heading>State Children’s Health Insurance Program</heading> <chapter> <num value="1">CHAPTER 1—</num><heading>STATE CHILDREN’S HEALTH INSURANCE PROGRAM</heading> <section> <num value="4901">SEC. 4901.</num> <heading>ESTABLISHMENT OF PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Establishment</inline>.—</heading><content>The Social Security Act is amended by adding at the end the following new title: <quotedContent> <title> <num value="XXI">“TITLE XXI—</num><heading>STATE CHILDREN’S HEALTH INSURANCE PROGRAM</heading> <section> <num value="2101">“SEC. 2101.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1397aa">42 USC 1397aa</ref>.</p></sidenote> <heading>PURPOSE; STATE CHILD HEALTH PLANS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Purpose</inline>.—</heading><chapeau>The purpose of this title is to provide funds to States to enable them to initiate and expand the provision of child health assistance to uninsured, low-income children in an effective and efficient manner that is coordinated with other sources of health benefits coverage for children. Such assistance shall be provided primarily for obtaining health benefits coverage through—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>obtaining coverage that meets the requirements of section 2103, or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>providing benefits under the State’s medicaid plan under title XIX, or a combination of both.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">State Child Health Plan Required</inline>.—</heading><chapeau>A State is not eligible for payment under section 2105 unless the State has submitted to the Secretary under section 2106 a plan that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>sets forth how the State intends to use the funds provided under this title to provide child health assistance to needy children consistent with the provisions of this title, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>has been approved under section 2106.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">State Entitlement</inline>.—</heading><chapeau>This title constitutes budget authority in advance of appropriations Acts and represents the obligation of the Federal Government to provide for the payment to States of amounts provided under section 2104.</chapeau> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>No State is eligible for payments under section 2105 for child health assistance for coverage provided for periods beginning before October 1, 1997.</content> </subsection> </section> <section> <num value="2102">“SEC. 2102.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1397bb">42 USC 1397bb</ref>.</p></sidenote> <heading>GENERAL CONTENTS OF STATE CHILD HEALTH PLAN; ELIGIBILITY; OUTREACH.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">General Background and Description</inline>.—</heading><chapeau>A State child health plan shall include a description, consistent with the requirements of this title, of—<page identifier="/us/stat/111/553">111 STAT. 553</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the extent to which, and manner in which, children in the State, including targeted low-income children and other classes of children classified by income and other relevant factors, currently have creditable health coverage (as defined in section 2110(c)(2));</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>current State efforts to provide or obtain creditable health coverage for uncovered children, including the steps the State is taking to identify and enroll all uncovered children who are eligible to participate in public health insurance programs and health insurance programs that involve public-private partnerships;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>how the plan is designed to be coordinated with such efforts to increase coverage of children under creditable health coverage;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>the child health assistance provided under the plan for targeted low-income children, including the proposed methods of delivery, and utilization control systems;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>eligibility standards consistent with subsection (b);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>outreach activities consistent with subsection (c); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <chapeau>methods (including monitoring) used—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>to assure the quality and appropriateness of care, particularly with respect to well-baby care, well-child care, and immunizations provided under the plan, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>to assure access to covered services, including emergency services.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">General Description of Eligibility Standards and Methodology</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Eligibility standards</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The plan shall include a description of the standards used to determine the eligibility of targeted low-income children for child health assistance under the plan. Such standards may include (to the extent consistent with this title) those relating to the geographic areas to be served by the plan, age, income and resources (including any standards relating to spenddowns and disposition of resources), residency, disability status (so long as any standard relating to such status does not restrict eligibility), access to or coverage under other health coverage, and duration of eligibility. Such standards may not discriminate on the basis of diagnosis.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Limitations on eligibility standards</inline>.—</heading><chapeau>Such eligibility standards—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>shall, within any defined group of covered targeted low-income children, not cover such children with higher family income without covering children with a lower family income, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>may not deny eligibility based on a child having a preexisting medical condition.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Methodology</inline>.—</heading><content>The plan shall include a description of methods of establishing and continuing eligibility and enrollment.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Eligibility screening; coordination with other health coverage programs</inline>.—</heading><chapeau>The plan shall include a description of procedures to be used to ensure—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>through both intake and followup screening, that only targeted low-income children are furnished child health assistance under the State child health plan;<page identifier="/us/stat/111/554">111 STAT. 554</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>that children found through the screening to be eligible for medical assistance under the State medicaid plan under title XIX are enrolled for such assistance under such plan;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>that the insurance provided under the State child health plan does not substitute for coverage under group health plans;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>the provision of child health assistance to targeted low-income children in the State who are Indians (as defined in section 4(c) of the Indian Health Care Improvement Act, 25 U.S.C. 1603(c)); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>coordination with other public and private programs providing creditable coverage for low-income children.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Nonentitlement</inline>.—</heading><content>Nothing in this title shall be construed as providing an individual with an entitlement to child health assistance under a State child health plan.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Outreach and Coordination</inline>.—</heading><chapeau>A State child health plan shall include a description of the procedures to be used by the State to accomplish the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Outreach</inline>.—</heading><content>Outreach to families of children likely to be eligible for child health assistance under the plan or under other public or private health coverage programs to inform these families of the availability of, and to assist them in enrolling their children in, such a program.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Coordination with other health insurance programs</inline>.—</heading><content>Coordination of the administration of the State program under this title with other public and private health insurance programs.</content></paragraph> </subsection> </section> <section> <num value="2103">“SEC. 2103.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1397cc">42 USC 1397cc</ref>.</p></sidenote> <heading>COVERAGE REQUIREMENTS FOR CHILDREN’S HEALTH INSURANCE.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Required Scope of Health Insurance Coverage</inline>.—</heading><chapeau>The child health assistance provided to a targeted low-income child under the plan in the form described in paragraph (1) of section 2101(a) shall consist, consistent with subsection (c)(5), of any of the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Benchmark coverage</inline>.—</heading><content>Health benefits coverage that is equivalent to the benefits coverage in a benchmark benefit package described in subsection (b).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Benchmark-equivalent coverage</inline>.—</heading><chapeau>Health benefits coverage that meets the following requirements:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Inclusion of basic services</inline>.—</heading><content>The coverage includes benefits for items and services within each of the categories of basic services described in subsection (c)(1).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Aggregate actuarial value equivalent to benchmark package</inline>.—</heading><content>The coverage has an aggregate actuarial value that is at least actuarially equivalent to one of the benchmark benefit packages.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Substantial actuarial value for additional services included in benchmark package</inline>.—</heading><content>With respect to each of the categories of additional services described in subsection (c)(2) for which coverage is provided under the benchmark benefit package used under subparagraph (B), the coverage has an actuarial value that is equal <page identifier="/us/stat/111/555">111 STAT. 555</page>to at least 75 percent of the actuarial value of the coverage of that category of services in such package.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Existing comprehensive state-based coverage</inline>.—</heading><content>Health benefits coverage under an existing comprehensive State-based program, described in subsection (d)(1).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Secretary-approved coverage</inline>.—</heading><content>Any other health benefits coverage that the Secretary determines, upon application by a State, provides appropriate coverage for the population of targeted low-income children proposed to be provided such coverage.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Benchmark Benefit Packages</inline>.—</heading><chapeau>The benchmark benefit packages are as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">FEHBP-equivalent children’s health insurance coverage</inline>.—</heading><content>The standard Blue Cross/Blue Shield preferred provider option service benefit plan, described in and offered under section 8903(1) of title 5, United States Code.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">State employee coverage</inline>.—</heading><content>A health benefits coverage plan that is offered and generally available to State employees in the State involved.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Coverage Offered Through Hmo</inline>.—</heading><chapeau>The health insurance coverage plan that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>is offered by a health maintenance organization (as defined in section 2791(b)(3) of the Public Health Service Act), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>has the largest insured commercial, non-medicaid enrollment of covered lives of such coverage plans offered by such a health maintenance organization in the State involved.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Categories of Services; Determination of Actuarial Value of Coverage</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Categories of basic services</inline>.—</heading><chapeau>For purposes of this section, the categories of basic services described in this paragraph are as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Inpatient and outpatient hospital services.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Physicians’ surgical and medical services.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>Laboratory and x-ray services.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>Well-baby and well-child care, including age-appropriate immunizations.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Categories of additional services</inline>.—</heading><chapeau>For purposes of this section, the categories of additional services described in this paragraph are as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Coverage of prescription drugs.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Mental health services.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>Vision services.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>Hearing services.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Treatment of other categories</inline>.—</heading><content>Nothing in this subsection shall be construed as preventing a State child health plan from providing coverage of benefits that are not within a category of services described in paragraph (1) or (2).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Determination of actuarial value</inline>.—</heading><chapeau>The actuarial value of coverage of benchmark benefit packages, coverage offered under the State child health plan, and coverage of any categories of additional services under benchmark benefit packages and under coverage offered by such a plan, shall be set forth in an actuarial opinion in an actuarial report that has been prepared—<page identifier="/us/stat/111/556">111 STAT. 556</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>by an individual who is a member of the American Academy of Actuaries;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>using generally accepted actuarial principles and methodologies;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>using a standardized set of utilization and price factors;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>using a standardized population that is representative of privately insured children of the age of children who are expected to be covered under the State child health plan;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>applying the same principles and factors in comparing the value of different coverage (or categories of services);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>without taking into account any differences in coverage based on the method of delivery or means of cost control or utilization used; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <content>taking into account the ability of a State to reduce benefits by taking into account the increase in actuarial value of benefits coverage offered under the State child health plan that results from the limitations on cost sharing under such coverage.</content></subparagraph> <continuation class="indent0 fontsize10">The actuary preparing the opinion shall select and specify in the memorandum the standardized set and population to be used under subparagraphs (C) and (D).</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Construction on prohibited coverage</inline>.—</heading><content>Nothing in this section shall be construed as requiring any health benefits coverage offered under the plan to provide coverage for items or services for which payment is prohibited under this title, notwithstanding that any benchmark benefit package includes coverage for such an item or service.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Description of Existing Comprehensive State-Based Coverage</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>A program described in this paragraph is a child health coverage program that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>includes coverage of a range of benefits;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>is administered or overseen by the State and receives funds from the State;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>is offered in New York, Florida, or Pennsylvania; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>was offered as of the date of the enactment of this title.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Modifications</inline>.—</heading><chapeau>A State may modify a program described in paragraph (1) from time to time so long as it continues to meet the requirement of subparagraph (A) and does not reduce the actuarial value of the coverage under the program below the lower of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the actuarial value of the coverage under the program as of the date of the enactment of this title, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the actuarial value described in subsection (a)(2)(B), evaluated as of the time of the modification.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Cost-Sharing</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Description; general conditions</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Description</inline>.—</heading><content>A State child health plan shall include a description, consistent with this subsection, of the amount (if any) of premiums, deductibles, coinsurance, <page identifier="/us/stat/111/557">111 STAT. 557</page>and other cost sharing imposed. Any such charges shall be imposed pursuant to a public schedule.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Protection for lower income children</inline>.—</heading><content>The State child health plan may only vary premiums, deductibles, coinsurance, and other cost sharing based on the family income of targeted low-income children in a manner that does not favor children from families with higher income over children from families with lower income.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">No cost sharing on benefits for preventive services</inline>.—</heading><content>The State child health plan may not impose deductibles, coinsurance, or other cost sharing with respect to benefits for services within the category of services described in subsection (c)(1)(D).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Limitations on premiums and cost-sharing</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Children in families with income below iso percent of poverty line</inline>.—</heading><chapeau>In the case of a targeted low-income child whose family income is at or below 150 percent of the poverty line, the State child health plan may not impose—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>an enrollment fee, premium, or similar charge that exceeds the maximum monthly charge permitted consistent with standards established to carry out section 1916(b)(1) (with respect to individuals described in such section); and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>a deductible, cost sharing, or similar charge that exceeds an amount that is nominal (as determined consistent with regulations referred to in section 1916(a)(3), with such appropriate adjustment for inflation or other reasons as the Secretary determines to be reasonable).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Other children</inline>.—</heading><content>For children not described in subparagraph (A), subject to paragraphs (1)(B) and (2), any premiums, deductibles, cost sharing or similar charges imposed under the State child health plan may be imposed on a sliding scale related to income, except that the total annual aggregate cost-sharing with respect to all targeted low-income children in a family under this title may not exceed 5 percent of such family’s income for the year involved.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Relation to medicaid requirements</inline>.—</heading><content>Nothing in this subsection shall be construed as affecting the rules relating to the use of enrollment fees, premiums, deductions, cost sharing, and similar charges in the case of targeted low-income children who are provided child health assistance in the form of coverage under a medicaid program under section 2101(a)(2).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Application of Certain Requirements</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Restriction on application of preexisting condition exclusions</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subject to subparagraph (B), the State child health plan shall not permit the imposition of any preexisting condition exclusion for covered benefits under the plan.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Group health plans and group health insurance coverage</inline>.—</heading><content>If the State child health plan provides for benefits through payment for, or a contract with, a group health plan or group health insurance coverage, the <page identifier="/us/stat/111/558">111 STAT. 558</page>plan may permit the imposition of a preexisting condition exclusion but only insofar as it is permitted under the applicable provisions of part 7 of subtitle B of title I of the Employee Retirement Income Security Act of 1974 and title XXVII of the Public Health Service Act.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Compliance with other requirements</inline>.—</heading><content>Coverage offered under this section shall comply with the requirements of subpart 2 of part A of title XXVII of the Public Health Service Act insofar as such requirements apply with respect to a health insurance issuer that offers group health insurance coverage.</content></paragraph> </subsection> </section> <section> <num value="2104">“SEC. 2104.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1397dd">42 USC 1397dd</ref>.</p></sidenote> <heading>ALLOTMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Appropriation; Total Allotment</inline>.—</heading><chapeau>For the purpose of providing allotments to States under this section, there is appropriated, out of any money in the Treasury not otherwise appropriated—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>for fiscal year 1998, $4,275,000,000;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>for fiscal year 1999, $4,275,000,000;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>for fiscal year 2000, $4,275,000,000;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>for fiscal year 2001, $4,275,000,000;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>for fiscal year 2002, $3,150,000,000;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>for fiscal year 2003, $3,150,000,000;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <content>for fiscal year 2004, $3,150,000,000;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <content>for fiscal year 2005, $4,050,000,000;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">“(9)</num> <content>for fiscal year 2006, $4,050,000,000; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">“(10)</num> <content>for fiscal year 2007, $5,000,000,000.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Allotments to 50 States and District of Columbia</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Subject to paragraph (4) and subsection (d), of the amount available for allotment under subsection (a) for a fiscal year, reduced by the amount of allotments made under subsection (c) for the fiscal year, the Secretary shall allot to each State (other than a State described in such subsection) with a State child health plan approved under this title the same proportion as the ratio of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the product of (i) the number of children described in paragraph (2) for the State for the fiscal year and (ii) the State cost factor for that State (established under paragraph (3)); to</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the sum of the products computed under subparagraph (A).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Number of children</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The number of children described in this paragraph for a State for—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>each of fiscal years 1998 through 2000 is equal to the number of low-income children in the State with no health insurance coverage for the fiscal year;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>fiscal year 2001 is equal to—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>75 percent of the number of low-income children in the State for the fiscal year with no health insurance coverage, plus<page identifier="/us/stat/111/559">111 STAT. 559</page></content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>25 percent of the number of low-income children in the State for the fiscal year; and</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <chapeau>each succeeding fiscal year is equal to—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>50 percent of the number of low-income children in the State for the fiscal year with no health insurance coverage, plus</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>50 percent of the number of low-income children in the State for the fiscal year.</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Determination of Number of Children</inline>.—</heading><content>For purposes of subparagraph (A), a determination of the number of low-income children (and of such children who have no health insurance coverage) for a State for a fiscal year shall be made on the basis of the arithmetic average of the number of such children, as reported and defined in the 3 most recent March supplements to the Current Population Survey of the Bureau of the Census before the beginning of the fiscal year.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Adjustment for geographic variations in health costs</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of paragraph (1)(A)(ii), the ‘State cost factor’ for a State for a fiscal year equal to the sum of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>0.15, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>0.85 multiplied by the ratio of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the annual average wages per employee for the State for such year (as determined under subparagraph (B)), to</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the annual average wages per employee for the 50 States and the District of Columbia.</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Annual average wages per employee</inline>.—</heading><content>For purposes of subparagraph (A), the ‘annual average wages per employee’ for a State, or for all the States, for a fiscal year is equal to the average of the annual wages per employee for the State or for the 50 States and the District of Columbia for employees in the health services industry (SIC code 8000), as reported by the Bureau of Labor Statistics of the Department of Labor for each of the most recent 3 years before the beginning of the fiscal year involved.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Floor for states</inline>.—</heading><content>Subject to paragraph (5), in no case shall the amount of the allotment under this subsection for one of the 50 States or the District of Columbia for a year be less than $2,000,000. To the extent that the application of the previous sentence results in an increase in the allotment to a State above the amount otherwise provided, the allotments for the other States and the District of Columbia under this subsection shall be reduced in a pro rata manner (but not below $2,000,000) so that the total of such allotments in a fiscal year does not exceed the amount otherwise provided for allotment under paragraph (1) for that fiscal year.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Allotments to Territories</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Of the amount available for allotment under subsection (a) for a fiscal year, subject to subsection (d), the Secretary shall allot 0.25 percent among each of the commonwealths and territories described in paragraph (3) in the same proportion as the percentage specified in paragraph (2) for such commonwealth or territory bears to the sum of such percentages for all such commonwealths or territories so described.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Percentage</inline>.—</heading><chapeau>The percentage specified in this paragraph for—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Puerto Rico is 91.6 percent,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Guam is 3.5 percent,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>Virgin Islands is 2.6 percent,<page identifier="/us/stat/111/560">111 STAT. 560</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>American Samoa is 1.2 percent, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>the Northern Mariana Islands is 1.1 percent.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Commonwealths and territories</inline>.—</heading><chapeau>A commonwealth or territory described in this paragraph is any of the following if it has a State child health plan approved under this title:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Puerto Rico.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Guam.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>the Virgin Islands.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>American Samoa.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>the Northern Mariana Islands.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Certain Medicaid Expenditures Counted Against Individual State Allotments</inline>.—</heading><chapeau>The amount of the allotment otherwise provided to a State under subsection (b) or (c) for a fiscal year shall be reduced by the sum of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the amount (if any) of the payments made to that State under section 1903(a) for calendar quarters during such fiscal year that is attributable to the provision of medical assistance to a child during a presumptive eligibility period under section 1920A, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the amount of payments under such section during such period that is attributable to the provision of medical assistance to a child for which payment is made under section 1903(a)(1) on the basis of an enhanced FMAP under section 1905(b).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">3-Year Availability of Amounts Allotted</inline>.—</heading><content>Amounts allotted to a State pursuant to this section for a fiscal year shall remain available for expenditure by the State through the end of the second succeeding fiscal year; except that amounts reallotted to a State under subsection (f) shall be available for expenditure by the State through the end of the fiscal year in which they are reallotted.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Procedure for Redistribution of Unused Allotments</inline>.—</heading><content>The Secretary shall determine an appropriate procedure for redistribution of allotments from States that were provided allotments under this section for a fiscal year but that do not expend all of the amount of such allotments during the period in which such allotments are available for expenditure under subsection (e), to States that have fully expended the amount of their allotments under this section.</content> </subsection> </section> <section> <num value="2105">“SEC. 2105.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1397ee">42 USC 1397ee</ref>.</p></sidenote> <heading>PAYMENTS TO STATES.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Subject to the succeeding provisions of this section, the Secretary shall pay to each State with a plan approved under this title, from its allotment under section 2104 (taking into account any adjustment under section 2104(d)), an amount for each quarter equal to the enhanced FMAP of expenditures in the quarter—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>for child health assistance under the plan for targeted low-income children in the form of providing health benefits coverage that meets the requirements of section 2103; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <chapeau>only to the extent permitted consistent with subsection (c)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>for payment for other child health assistance for targeted low-income children;<page identifier="/us/stat/111/561">111 STAT. 561</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>for expenditures for health services initiatives under the plan for improving the health of children (including targeted low-income children and other low-income children);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>for expenditures for outreach activities as provided in section 2102(c)(1) under the plan; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>for other reasonable costs incurred by the State to administer the plan.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Enhanced FMAP</inline>.—</heading><content>For purposes of subsection (a), the ‘enhanced FMAP’, for a State for a fiscal year, is equal to the Federal medical assistance percentage (as defined in the first sentence of section 1905(b)) for the State increased by a number of percentage points equal to 30 percent of the number of percentage points by which (1) such Federal medical assistance percentage for the State, is less than (2) 100 percent; but in no case shall the enhanced FMAP for a State exceed 85 percent.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Limitation on Certain Payments for Certain Expenditures</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">General limitations</inline>.—</heading><content>Funds provided to a State under this title shall only be used to carry out the purposes of this title (as described in section 2101), and any health insurance coverage provided with such funds may include coverage of abortion only if necessary to save the life of the mother or if the pregnancy is the result of an act of rape or incest.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Limitation on expenditures not used for medicaid or health insurance assistance</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Except as provided in this paragraph, payment shall not be made under subsection (a) for expenditures for items described in subsection (a) (other than paragraph (1)) for a quarter in a fiscal year to the extent the total of such expenditures exceeds 10 percent of the sum of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the total Federal payments made under subsection (a) for such quarter in the fiscal year, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the total Federal payments made under section 1903(a)(1) based on an enhanced FMAP described in section 1905(u)(2) for such quarter.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Waiver authorized for cost-effective alternative</inline>.—</heading><chapeau>The limitation under subparagraph (A) on expenditures for items described in subsection (a)(2) shall not apply to the extent that a State establishes to the satisfaction of the Secretary that—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>coverage provided to targeted low-income children through such expenditures meets the requirements of section 2103;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the cost of such coverage is not greater, on an average per child basis, than the cost of coverage that would otherwise be provided under section 2103; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>such coverage is provided through the use of a community-based health delivery system, such as through contracts with health centers receiving funds under section 330 of the Public Health Service Act or with hospitals such as those that receive disproportionate share payment adjustments under section 1886(d)(5)(F) or 1923.<page identifier="/us/stat/111/562">111 STAT. 562</page></content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Waiver for purchase of family coverage</inline>.—</heading><chapeau>Payment may be made to a State under subsection (a)(1) for the purchase of family coverage under a group health plan or health insurance coverage that includes coverage of targeted low-income children only if the State establishes to the satisfaction of the Secretary that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>purchase of such coverage is cost-effective relative to the amounts that the State would have paid to obtain comparable coverage only of the targeted low-income children involved, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>such coverage shall not be provided if it would otherwise substitute for health insurance coverage that would be provided to such children but for the purchase of family coverage.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Use of non-federal funds for state matching requirement</inline>.—</heading><content>Amounts provided by the Federal Government, or services assisted or subsidized to any significant extent by the Federal Government, may not be included in determining the amount of non-Federal contributions required under subsection (a).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Offset of receipts attributable to premiums and other cost-sharing</inline>.—</heading><content>For purposes of subsection (a), the amount of the expenditures under the plan shall be reduced by the amount of any premiums and other cost-sharing received by the State.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Prevention of duplicative payments</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Other health plans</inline>.—</heading><content>No payment shall be made to a State under this section for expenditures for child health assistance provided for a targeted low-income child under its plan to the extent that a private insurer (as defined by the Secretary by regulation and including a group health plan (as defined in section 607(1) of the Employee Retirement Income Security Act of 1974), a service benefit plan, and a health maintenance organization) would have been obligated to provide such assistance but for a provision of its insurance contract which has the effect of limiting or excluding such obligation because the individual is eligible for or is provided child health assistance under the plan.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Other federal governmental programs</inline>.—</heading><content>Except as otherwise provided by law, no payment shall be made to a State under this section for expenditures for child health assistance provided for a targeted low-income child under its plan to the extent that payment has been made or can reasonably be expected to be made promptly (as determined in accordance with regulations) under any other federally operated or financed health care insurance program, other than an insurance program operated or financed by the Indian Health Service, as identified by the Secretary. For purposes of this paragraph, rules similar to the rules for overpayments under section 1903(d)(2) shall apply.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Limitation on payment for abortions</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Payment shall not be made to a State under this section for any amount expended under the State plan to pay for any abortion or to assist in <page identifier="/us/stat/111/563">111 STAT. 563</page>the purchase, in whole or in part, of health benefit coverage that includes coverage of abortion.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Exception</inline>.—</heading><content>Subparagraph (A) shall not apply to an abortion only if necessary to save the life of the mother or if the pregnancy is the result of an act of rape or incest.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Rule of construction</inline>.—</heading><content>Nothing in this section shall be construed as affecting the expenditure by a State, locality, or private person or entity of State, local, or private funds (other than funds expended under the State plan) for any abortion or for health benefits coverage that includes coverage of abortion.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Maintenance of Effort</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In medicaid eligibility standards</inline>.—</heading><content>No payment may be made under subsection (a) with respect to child health assistance provided under a State child health plan if the State adopts income and resource standards and methodologies for purposes of determining a child’s eligibility for medical assistance under the State plan under title XIX that are more restrictive than those applied as of June 1, 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">In amounts of payment expended for certain state-funded health insurance programs for children</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The amount of the allotment for a State in a fiscal year (beginning with fiscal year 1999) shall be reduced by the amount by which—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the total of the State children’s health insurance expenditures in the preceding fiscal year, is less than</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the total of such expenditures in fiscal year 1996.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">State children’s health insurance expenditures</inline>.—</heading><chapeau>The term ‘State children’s health insurance expenditures’ means the following:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>The State share of expenditures under this title.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>The State share of expenditures under title XIX that are attributable to an enhanced FMAP under section 1905(u).</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>State expenditures under health benefits coverage under an existing comprehensive State-based program, described section 2103(d).</content></clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Advance Payment; Retrospective Adjustment</inline>.—</heading><content>The Secretary may make payments under this section for each quarter on the basis of advance estimates of expenditures submitted by the State and such other investigation as the Secretary may find necessary, and may reduce or increase the payments as necessary to adjust for any overpayment or underpayment for prior quarters.</content> </subsection> </section> <section> <num value="2106">“SEC. 2106.</num> <heading>PROCESS FOR SUBMISSION, APPROVAL, AND AMENDMENT OF STATE CHILD HEALTH PLANS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1397ff">42 USC 1397ff</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Initial Plan</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>As a condition of receiving payment under section 2105, a State shall submit to the Secretary a State child health plan that meets the applicable requirements of this title.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Approval</inline>.—</heading><chapeau>Except as the Secretary may provide under subsection (e), a State plan submitted under paragraph (1)—<page identifier="/us/stat/111/564">111 STAT. 564</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>shall be approved for purposes of this title, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> <content>shall be effective beginning with a calendar quarter that is specified in the plan, but in no case earlier than October 1, 1997.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Plan Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>A State may amend, in whole or in part, its State child health plan at any time through transmittal of a plan amendment.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Approval</inline>.—</heading><chapeau>Except as the Secretary may provide under subsection (e), an amendment to a State plan submitted under paragraph (1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>shall be approved for purposes of this title, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>shall be effective as provided in paragraph (3).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Effective dates for amendments</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subject to the succeeding provisions of this paragraph, an amendment to a State plan shall take effect on one or more effective dates specified in the amendment.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Amendments relating to eligibility or benefits</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Notice requirement</inline>.—</heading><content>Any plan amendment that eliminates or restricts eligibility or benefits under the plan may not take effect unless the State certifies that it has provided prior public notice of the change, in a form and manner provided under applicable State law.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Timely transmittal</inline>.—</heading><content>Any plan amendment that eliminates or restricts eligibility or benefits under the plan shall not be effective for longer than a 60-day period unless the amendment has been transmitted to the Secretary before the end of such period.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Other amendments</inline>.—</heading><content>Any plan amendment that is not described in subparagraph (B) and that becomes effective in a State fiscal year may not remain in effect after the end of such fiscal year (or, if later, the end of the 90-day period on which it becomes effective) unless the amendment has been transmitted to the Secretary.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Disapproval of Plans and Plan Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Prompt review of plan submittals</inline>.—</heading><content>The Secretary shall promptly review State plans and plan amendments submitted under this section to determine if they substantially comply with the requirements of this title.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">90-day approval deadlines</inline>.—</heading><content>A State plan or plan amendment is considered approved unless the Secretary notifies the State in writing, within 90 days after receipt of the plan or amendment, that the plan or amendment is disapproved (and the reasons for disapproval) or that specified additional information is needed.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Correction</inline>.—</heading><content>In the case of a disapproval of a plan or plan amendment, the Secretary shall provide a State with a reasonable opportunity for correction before taking financial sanctions against the State on the basis of such disapproval.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Program Operation</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The State shall conduct the program in accordance with the plan (and any amendments) approved under subsection (c) and with the requirements of this title.<page identifier="/us/stat/111/565">111 STAT. 565</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Violations</inline>.—</heading><content>The Secretary shall establish a process for enforcing requirements under this title. Such process shall provide for the withholding of funds in the case of substantial noncompliance with such requirements. In the case of an enforcement action against a State under this paragraph, the Secretary shall provide a State with a reasonable opportunity for correction before taking financial sanctions against the State on the basis of such an action.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Continued Approval</inline>.—</heading><content>An approved State child health plan shall continue in effect unless and until the State amends the plan under subsection (b) or the Secretary finds, under subsection (d), substantial noncompliance of the plan with the requirements of this title.</content> </subsection> </section> <section> <num value="2107">“SEC. 2107.</num> <heading>STRATEGIC OBJECTIVES AND PERFORMANCE GOALS; PLAN ADMINISTRATION.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1397gg">42 USC 1397gg</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Strategic Objectives and Performance Goals</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Description</inline>.—</heading><chapeau>A State child health plan shall include a description of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the strategic objectives,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the performance goals, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>the performance measures,</content></subparagraph> <continuation class="indent0 fontsize10">the State has established for providing child health assistance to targeted low-income children under the plan and otherwise for maximizing health benefits coverage for other low-income children and children generally in the State.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Strategic objectives</inline>.—</heading><content>Such plan shall identify specific strategic objectives relating to increasing the extent of creditable health coverage among targeted low-income children and other low-income children.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Performance goals</inline>.—</heading><content>Such plan shall specify one or more performance goals for each such strategic objective so identified.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Performance measures</inline>.—</heading><chapeau>Such plan shall describe how performance under the plan will be—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>measured through objective, independently verifiable means, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>compared against performance goals, in order to determine the State’s performance under this title.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Records, Reports, Audits, and Evaluation</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Data collection, records, and reports</inline>.—</heading><content>A State child health plan shall include an assurance that the State will collect the data, maintain the records, and furnish the reports to the Secretary, at the times and in the standardized format the Secretary may require in order to enable the Secretary to monitor State program administration and compliance and to evaluate and compare the effectiveness of State plans under this title.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">State assessment and study</inline>.—</heading><content>A State child health plan shall include a description of the State’s plan for the annual assessments and reports under section 2108(a) and the evaluation required by section 2108(b).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Audits</inline>.—</heading><content>A State child health plan shall include an assurance that the State will afford the Secretary access to any records or information relating to the plan for the purposes of review or audit.<page identifier="/us/stat/111/566">111 STAT. 566</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Program Development Process</inline>—</heading><content>A State child health plan shall include a description of the process used to involve the public in the design and implementation of the plan and the method for ensuring ongoing public involvement.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Program Budget</inline>.—</heading><content>A State child health plan shall include a description of the budget for the plan. The description shall be updated periodically as necessary and shall include details on the planned use of funds and the sources of the non-Federal share of plan expenditures, including any requirements for cost-sharing by beneficiaries.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Application of Certain General Provisions</inline>.—</heading><chapeau>The following sections of this Act shall apply to States under this title in the same manner as they apply to a State under title XIX:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Title xix Provisions</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Section 1902(a)(4)(C) (relating to conflict of interest standards).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Paragraphs (2), (16), and (17) of section 1903(i) (relating to limitations on payment).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>Section 1903(w) (relating to limitations on provider taxes and donations).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Title xi provisions</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Section 1115 (relating to waiver authority).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Section 1116 (relating to administrative and judicial review), but only insofar as consistent with this title.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>Section 1124 (relating to disclosure of ownership and related information).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>Section 1126 (relating to disclosure of information about certain convicted individuals).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>Section 1128A (relating to civil monetary penalties).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>Section 1128B(d) (relating to criminal penalties for certain additional charges).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <content>Section 1132 (relating to periods within which claims must be filed).</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="2108">“SEC. 2108.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1397hh">42 USC 1397hh</ref>.</p></sidenote> <heading>ANNUAL REPORTS; EVALUATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Annual Report</inline>.—</heading><chapeau>The State shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>assess the operation of the State plan under this title in each fiscal year, including the progress made in reducing the number of uncovered low-income children; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>report to the Secretary, by January 1 following the end of the fiscal year, on the result of the assessment.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">State Evaluations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>By March 31, 2000, each State that has a State child health plan shall submit to the Secretary an evaluation that includes each of the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>An assessment of the effectiveness of the State plan in increasing the number of children with creditable health coverage.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>A description and analysis of the effectiveness of elements of the State plan, including—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the characteristics of the children and families assisted under the State plan including age of the children, family income, and the assisted child’s access to or coverage by other health insurance prior to the State plan and after eligibility for the State plan ends,<page identifier="/us/stat/111/567">111 STAT. 567</page></content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the quality of health coverage provided including the types of benefits provided,</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>the amount and level (including payment of part or all of any premium) of assistance provided by the State,</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>the service area of the State plan,</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>the time limits for coverage of a child under the State plan,</content></clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <content>the State’s choice of health benefits coverage and other methods used for providing child health assistance, and</content></clause> <clause class="indent3 fontsize10"><num value="vii">“(vii)</num> <content>the sources of non-Federal funding used in the State plan.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>An assessment of the effectiveness of other public and private programs in the State in increasing the availability of affordable quality individual and family health insurance for children.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>A review and assessment of State activities to coordinate the plan under this title with other public and private programs providing health care and health care financing, including medicaid and maternal and child health services.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>An analysis of changes and trends in the State that affect the provision of accessible, affordable, quality health insurance and health care to children.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>A description of any plans the State has for improving the availability of health insurance and health care for children.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <content>Recommendations for improving the program under this title.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num> <content>Any other matters the State and the Secretary consider appropriate.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Report of the secretary</inline>.—</heading><content>The Secretary shall submit<sidenote><p class="indent0 firstIndent0 fontsize8">Public information.</p></sidenote> to Congress and make available to the public by December 31, 2001, a report based on the evaluations submitted by States under paragraph (1), containing any conclusions and recommendations the Secretary considers appropriate.</content></paragraph> </subsection> </section> <section> <num value="2109">“SEC. 2109.</num> <heading>MISCELLANEOUS PROVISIONS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1397ii">42 USC 1397ii</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Relation to Other Laws</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading>HIPAA.—</heading><content>Health benefits coverage provided under section 2101(a)(1) (and coverage provided under a waiver under section 2105(c)(2)(B)) shall be treated as creditable coverage for purposes of part 7 of subtitle B of title II of the Employee Retirement Income Security Act of 1974, title XXVII of the Public Health Service Act, and subtitle K of the Internal Revenue Code of 1986.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading></heading><content>Nothing in this title shall be construed as affecting or modifying section 514 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1144) with respect to a group health plan (as defined in section 2791(a)(1) of the Public Health Service Act (42 U.S.C. 300gg–91(a)(1)).</content></paragraph> </subsection> </section> <section> <num value="2110">“SEC. 2110.</num> <heading>DEFINITIONS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1397jj">42 USC 1397jj</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Child Health Assistance</inline>.—</heading><chapeau>For purposes of this title, the term ‘child health assistance’ means payment for part or all of the cost of health benefits coverage for targeted low-income children that includes any of the following (and includes, in the <page identifier="/us/stat/111/568">111 STAT. 568</page>case described in section 2105(a)(2)(A), payment for part or all of the cost of providing any of the following), as specified under the State plan:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>Inpatient hospital services.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>Outpatient hospital services.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>Physician services.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>Surgical services.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>Clinic services (including health center services) and other ambulatory health care services.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>Prescription drugs and biologicals and the administration of such drugs and biologicals, only if such drugs and biologicals are not furnished for the purpose of causing, or assisting in causing, the death, suicide, euthanasia, or mercy killing of a person.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <content>Over-the-counter medications.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <content>Laboratory and radiological services.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">“(9)</num> <content>Prenatal care and prepregnancy family planning services and supplies.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">“(10)</num> <content>Inpatient mental health services, other than services described in paragraph (18) but including services furnished in a State-operated mental hospital and including residential or other 24-nour therapeutically planned structured services.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="11">“(11)</num> <content>Outpatient mental health services, other than services described in paragraph (19) but including services furnished in a State-operated mental hospital and including community-based services.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="12">“(12)</num> <content>Durable medical equipment and other medically-related or remedial devices (such as prosthetic devices, implants, eyeglasses, hearing aids, dental devices, and adaptive devices).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="13">“(13)</num> <content>Disposable medical supplies.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="14">“(14)</num> <content>Home and community-based health care services and related supportive services (such as home health nursing services, home health aide services, personal care, assistance with activities of daily living, chore services, day care services, respite care services, training for family members, and minor modifications to the home).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="15">“(15)</num> <content>Nursing care services (such as nurse practitioner services, nurse midwife services, advanced practice nurse services, private duty nursing care, pediatric nurse services, and respiratory care services) in a home, school, or other setting.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="16">“(16)</num> <content>Abortion only if necessary to save the life of the mother or if the pregnancy is the result of an act of rape or incest.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="17">“(17)</num> <content>Dental services.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="18">“(18)</num> <content>Inpatient substance abuse treatment services and residential substance abuse treatment services.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="19">“(19)</num> <content>Outpatient substance abuse treatment services.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="20">“(20)</num> <content>Case management services.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="21">“(21)</num> <content>Care coordination services.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="22">“(22)</num> <content>Physical therapy, occupational therapy, and services for individuals with speech, hearing, and language disorders.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="23">“(23)</num> <content>Hospice care.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="24">“(24)</num> <chapeau>Any other medical, diagnostic, screening, preventive, restorative, remedial, therapeutic, or rehabilitative services (whether in a facility, home, school, or other setting) if recognized by State law and only if the service is—<page identifier="/us/stat/111/569">111 STAT. 569</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>prescribed by or furnished by a physician or other licensed or registered practitioner within the scope of practice as defined by State law,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>performed under the general supervision or at the direction of a physician, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>furnished by a health care facility that is operated by a State or local government or is licensed under State law and operating within the scope of the license.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="25">“(25)</num> <content>Premiums for private health care insurance coverage.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="26">“(26)</num> <content>Medical transportation.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="27">“(27)</num> <content>Enabling services (such as transportation, translation, and outreach services) only if designed to increase the accessibility of primary and preventive health care services for eligible low-income individuals.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="28">“(28)</num> <content>Any other health care services or items specified by the Secretary and not excluded under this section.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Targeted Low-Income Child Defined</inline>.—</heading><chapeau>For purposes of this title—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Subject to paragraph (2), the term ‘targeted low-income child’ means a child—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>who has been determined eligible by the State for child health assistance under the State plan;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num><clause class="inline"><num value="i">(i)</num> <content>who is a low-income child, or</content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii)</num> <content>is a child whose family income (as determined under the State child health plan) exceeds the medicaid applicable income level (as defined in paragraph (4)), but does not exceed 50 percentage points above the medicaid applicable income level; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>who is not found to be eligible for medical assistance under title XIX or covered under a group health plan or under health insurance coverage (as such terms are defined in section 2791 of the Public Health Service Act).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Children excluded</inline>.—</heading><chapeau>Such term does not include—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>a child who is an inmate of a public institution or a patient in an institution for mental diseases; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>a child who is a member of a family that is eligible for health benefits coverage under a State health benefits plan on the basis of a family member’s employment with a public agency in the State.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Special rule</inline>.—</heading><content>A child shall not be considered to be described in paragraph (1)(C) notwithstanding that the child is covered under a health insurance coverage program that has been in operation since before July 1, 1997, and that is offered by a State which receives no Federal funds for the program’s operation.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Medicaid applicable income level</inline>.—</heading><content>The term ‘medicaid applicable income level’ means, with respect to a child, the effective income level (expressed as a percent of the poverty line) that has been specified under the State plan under title XIX (including under a waiver authorized by the Secretary or under section 1902(r)(2)), as of June 1, 1997, for the child to be eligible for medical assistance under section 1902(l)(2) for the age of such child.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Additional Definitions</inline>.—</heading><chapeau>For purposes of this title:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Child</inline>.—</heading><content>The term ‘child’ means an individual under 19 years of age.<page identifier="/us/stat/111/570">111 STAT. 570</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Creditable health coverage</inline>.—</heading><content>The term ‘creditable health coverage’ has the meaning given the term ‘creditable coverage’ under section 2701(c) of the Public Health Service Act (42 U.S.C. 300gg(c)) and includes coverage that meets the requirements of section 2103 provided to a targeted low-income child under this title or under a waiver approved under section 2105(c)(2)(B) (relating to a direct service waiver).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Group health plan; health insurance coverage; etc</inline>.—</heading><content>The terms ‘group health plan’, ‘group health insurance coverage’, and ‘health insurance coverage’ have the meanings given such terms in section 2191 of the Public Health Service Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Low-income</inline>.—</heading><content>The term ‘low-income child’ means a child whose family income is at or below 200 percent of the poverty line for a family of the size involved.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Poverty line defined</inline>.—</heading><content>The term ‘poverty line’ has the meaning given such term in section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)), including any revision required by such section.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Preexisting condition exclusion</inline>.—</heading><content>The term ‘preexisting condition exclusion’ has the meaning given such term in section 2701(b)(1)(A) of the Public Health Service Act (42 U.S.C. 300gg(b)(1)(A)).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">State child health plan; plan</inline>.—</heading><content>Unless the context otherwise requires, the terms ‘State child health plan’ and ‘plan’ mean a State child health plan approved under section 2106.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <heading><inline class="smallCaps">Uncovered child</inline>.—</heading><content>The term ‘uncovered child’ means a child that does not have creditable health coverage.”.</content></paragraph> </subsection> </section> (b) Conforming Amendments.— (1)

42 USC 1301.

 Definition of state.—Section 1101(a)(1) is amended— (A) by striking “and XIX” and inserting “XIX, and XXI”, and (B) by striking “title XIX” and inserting “itles XIX and XXI”. (2) Treatment as state health care program.—Section 1128(h) (42 U.S.C. 1320a–7(h)) is amended by— (A) in paragraph (2), by striking “or” at the end; (B) in paragraph (3), by striking the period and inserting “, or”; and (C) by adding at the end the following: “(4) a State child health plan approved under title XXI.”. CHAPTER 2—EXPANDED COVERAGE OF CHILDREN UNDER MEDICAID
SEC. 4911. OPTIONAL USE OF STATE CHILD HEALTH ASSISTANCE FUNDS FOR ENHANCED MEDICAID MATCH FOR EXPANDED MEDICAID ELIGIBILITY. (a) Increased FMAP for Medical Assistance for Expanded Coverage of Targeted Low-Income Children.—Section 1905 of the Social Security Act (42 U.S.C. 1396d), as amended by section 4702(a)(2), is amended— (1) in subsection (b), by adding at the end the following new sentence: “Notwithstanding the first sentence of this subsection, in the case of a State plan that meets the condition described in subsection (u)(1), with respect to expenditures 111 STAT. 571described in subsection (u)(2)(A) or subsection (u)(3) the Federal medical assistance percentage is equal to the enhanced FMAP described in section 2105(b).”; and (2) by adding at the end the following new subsection: “(u)(1) The conditions described in this paragraph for a State plan are as follows: “(A) The State is complying with the requirement of section 2105(d)(1). “(B) The plan provides for such reporting of information about expenditures and payments attributable to the operation of this subsection as the Secretary deems necessary in order to carry out paragraph (2) and section 2104(d). “(2)(A) For purposes of subsection (b), the expenditures described in this subparagraph are expenditures for medical assistance for optional targeted low-income children described in subparagraph (C), but not in excess, for a State for a fiscal year, of the amount described in subparagraph (B) for the State and fiscal year. “(B) The amount described in this subparagraph, for a State for a fiscal year, is the amount of the State’s allotment under section 2104 (not taking into account reductions under section 2104(d)(2)) for the fiscal year reduced by the amount of any payments made under section 2105 to the State from such allotment for such fiscal year. “(C) For purposes of this paragraph, the term ‘optional targeted low-income child’ means a targeted low-income child as defined in section 2110(b)(1) who would not qualify for medical assistance under the State plan under this title based on such plan as in effect on April 15, 1997 (but taking into account the expansion of age of eligibility effected through the operation of section 1902(l)(2)(D)). “(3) For purposes of subsection (b), the expenditures described in this subparagraph are expenditures for medical assistance for children who are born before October 1, 1983, and who would be described in section 1902(l)(1)(D) if they had been born on or after such date, and who are not eligible for such assistance under the State plan under this title based on such State plan as in effect as of April 15, 1997.”. (b) Establishment of Optional Eligibility Category.—Section 1902(a)(10)(A)(ii) (42 U.S.C. 1396a(a)(10)(A)(ii)), as amended by section 4733, is amended— (1) in subclause (XII), by striking “or” at the end; (2) in subclause (XIII), by adding “or” at the end; and (3) by adding at the end the following: “(XIV) who are optional targeted low-income children described in section 1905(u)(2)(C);”. (c) Effective Date.—The amendments made by this section

42 USC 1396a note.

 shall apply to medical assistance for items and services furnished on or after October 1, 1997.
SEC. 4912. MEDICAID PRESUMPTIVE ELIGIBILITY FOR LOW-INCOME CHILDREN. (a) In General.—Title XIX of the Social Security Act is amended by inserting after section 1920 the following new section:111 STAT. 572 “presumptive eligibility for children
“Sec. 1920A.

42 USC 1396r–1a.

 (a) A State plan approved under section 1902 may provide for making medical assistance with respect to health care items and services covered under the State plan available to a child during a presumptive eligibility period. “(b) For purposes of this section: “(1) The term ‘child’ means an individual under 19 years of age. “(2) The term ‘presumptive eligibility period’ means, with respect to a child, the period that— “(A) begins with the date on which a qualified entity determines, on the basis of preliminary information, that the family income of the child does not exceed the applicable income level of eligibility under the State plan, and “(B) ends with (and includes) the earlier of— “(i) the day on which a determination is made with respect to the eligibility of the child for medical assistance under the State plan, or “(ii) in the case of a child on whose behalf an application is not filed by the last day of the month following the month during which the entity makes the determination referred to in subparagraph (A), such last day. “(3)(A) Subject to subparagraph (B), the term ‘qualified entity’ means any entity that— “(i)(I) is eligible for payments under a State plan approved under this title and provides items and services described in subsection (a) or (II) is authorized to determine eligibility of a child to participate in a Head Start program under the Head Start Act (42 U.S.C. 9821 et seq.), eligibility of a child to receive child care services for which financial assistance is provided under the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858 et seq.), eligibility of an infant or child to receive assistance under the special supplemental nutrition program for women, infants, and children (WIC) under section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786); and “(ii) is determined by the State agency to be capable of making determinations of the type described in paragraph (1)(A). “(B) The Secretary may issue regulations further limiting those entities that may become qualified entities in order to prevent fraud and abuse and for other reasons. “(C) Nothing in this section shall be construed as preventing a State from limiting the classes of entities that may become qualified entities, consistent with any limitations imposed under subparagraph (B). “(c)(1) The State agency shall provide qualified entities with— “(A) such forms as are necessary for an application to be made on behalf of a child for medical assistance under the State plan, and “(B) information on how to assist parents, guardians, and other persons in completing and filing such forms.111 STAT. 573 “(2) A qualified entity that determines under subsection (b)(1)(A) that a child is presumptively eligible for medical assistance under a State plan shall— “(A) notify the State agency of the determination within

Notification.

 5 working days after the date on which determination is made, and “(B) inform the parent or custodian of the child at the time the determination is made that an application for medical assistance under the State plan is required to be made by not later than the last day of the month following the month during which the determination is made. “(3) In the case of a child who is determined by a qualified entity to be presumptively eligible for medical assistance under a State plan, the parent, guardian, or other person shall make application on behalf of the child for medical assistance under such plan by not later than the last day of the month following the month during which the determination is made, which application may be the application used for the receipt of medical assistance by individuals described in section 1902(l)(1). “(d) Notwithstanding any other provision of this title, medical assistance for items and services described in subsection (a) that— “(1) are furnished to a child— “(A) during a presumptive eligibility period, “(B) by a entity that is eligible for payments under the State plan; and “(2) are included in the care and services covered by a State plan; shall be treated as medical assistance provided by such plan for purposes of section 1903.”.
(b) Conforming Amendments.— (1) Section 1902(a)(47) (42 U.S.C. 1396a(a)(47)) is amended by inserting before the semicolon at the end the following: “and provide for making medical assistance for items and services described in subsection (a) of section 1920A available to children during a presumptive eligibility period in accordance with such section”. (2) Section 1903(u)(1)(D)(v) (42 U.S.C. 1396b(u)(1)(D)(v)) is amended by inserting before the period at the end the following: “or for items and services described in subsection (a) of section 1920A provided to a child during a presumptive eligibility period under such section”. (c) Effective Date.—The amendments made by this section

42 USC 1396a note.

 shall take effect on the date of the enactment of this Act.
SEC. 4913. CONTINUATION OF MEDICAID ELIGIBILITY FOR DISABLED CHILDREN WHO LOSE SSI BENEFITS. (a) In General.—Section 1902(a)(10)(A)(i)(II) (42 U.S.C. 1396a(a)(10)(A)(i)(II)) is amended by inserting “(or were being paid as of the date of the enactment of section 211(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (P.L. 104–193)) and would continue to be paid but for the enactment of that section” after “title XVI”. (b) Effective Date.—The amendment made by subsection (a)

42 USC 1396a note.

 applies to medical assistance furnished on or after July 1, 1997.111 STAT. 574
CHAPTER 3—DIABETES GRANT PROGRAMS
SEC. 4921. SPECIAL DIABETES PROGRAMS FOR CHILDREN WITH TYPE I DIABETES. Subpart I of part D of title III of the Public Health Service Act (42 U.S.C. 254b et seq.) is amended by adding at the end the following section:
“SEC. 330B.

42 USC 254c–2.

 SPECIAL DIABETES PROGRAMS FOR CHILDREN WITH TYPE I DIABETES. “(a) Type I Diabetes in Children.—The Secretary shall make grants for services for the prevention and treatment of type I diabetes in children, and for research in innovative approaches to such services. Such grants may be made to children’s hospitals; grantees under section 330 and other federally Qualified health centers; State and local health departments; and other appropriate public or nonprofit private entities. “(b) Funding.—Notwithstanding section 2104(a) of the Social Security Act, from the amounts appropriated in such section for each of fiscal years 1998 through 2002, $30,000,000 is hereby transferred and made available in such fiscal year for grants under this section.”.
SEC. 4922. SPECIAL DIABETES PROGRAMS FOR INDIANS. Subpart I of part D of title III of the Public Health Service Act (42 U.S.C. 254b et seq.), as amended by section 4921, is further amended by adding at the end the following section:
“SEC. 330C.

42 USC 254c–3.

 SPECIAL DIABETES PROGRAMS FOR INDIANS. “(a) In General.—The Secretary shall make grants for providing services for the prevention and treatment of diabetes in accordance with subsection (b). “(b) Services Through Indian Health Facilities.—For purposes of subsection (a), services under such subsection are provided in accordance with this subsection if the services are provided through any of the following entities: “(1) The Indian Health Service. “(2) An Indian health program operated by an Indian tribe or tribal organization pursuant to a contract, grant, cooperative agreement, or compact with the Indian Health Service pursuant to the Indian Self-Determination Act. “(3) An urban Indian health program operated by an urban Indian organization pursuant to a grant or contract with the Indian Health Service pursuant to title V of the Indian Health Care Improvement Act. “(c) Funding.—Notwithstanding section 2104(a) of the Social Security Act, from the amounts appropriated in such section for each of fiscal years 1998 through 2002, $30,000,000 is hereby transferred and made available in such fiscal year for grants under this section.”.
SEC. 4923.

42 USC 1254c–2 note.

 REPORT ON DIABETES GRANT PROGRAMS. (a) Evaluation.—The Secretary of Health and Human Services shall conduct an evaluation of the diabetes grant programs established under the amendments made by this chapter. (b) Reports.—The Secretary shall submit to the appropriate committees of Congress—111 STAT. 575 (1) an interim report on the evaluation conducted under subsection (a) not later than January 1, 2000, and (2) a final report on such evaluation not later than January 1, 2002.
<num value="V">TITLE V—</num><heading>WELFARE AND RELATED PROVISIONS</heading> <section> <num value="5000">SEC. 5000.</num> <heading>TABLE OF CONTENTS; REFERENCES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Table of Contents</inline>.—</heading><content>The table of contents of this title is as follows: <toc> <referenceItem role="section"><designator>Sec. 5000.</designator> <label>Table of contents; references.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle A—</designator><label>TANF Block Grant</label></referenceItem> <referenceItem role="section"><designator>Sec. 5001.</designator> <label>Welfare-to-work grants.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5002.</designator> <label>Limitation on amount of Federal funds transferable to title XX programs.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5003.</designator> <label>Limitation on number of persons who may be treated as engaged in work by reason of participation in educational activities.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5004.</designator> <label>Penalty for failure of State to reduce assistance for recipients refusing without good cause to work.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle B—</designator><label>Supplemental Security Income</label></referenceItem> <referenceItem role="section"><designator>Sec. 5101.</designator> <label>Extension of deadline to perform childhood disability redeterminations.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5102.</designator> <label>Fees for Federal administration of State supplementary payments.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle C—</designator><label>Child Support Enforcement</label></referenceItem> <referenceItem role="section"><designator>Sec. 5201.</designator> <label>Clarification of authority to permit certain redisclosures of wage and claim information.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle D—</designator><label>Restricting Welfare and Public Benefits for Aliens</label></referenceItem> <referenceItem role="section"><designator>Sec. 5301.</designator> <label>SSI eligibility for aliens receiving SSI on August 22, 1996, and disabled aliens lawfully residing in the United States on August 22, 1996.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5302.</designator> <label>Extension of eligibility period for refugees and certain other qualified aliens from 5 to 7 years for SSI and medicaid; status of Cuban and Haitian entrants.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5303.</designator> <label>Exceptions for certain Indians from limitation on eligibility for supplemental security income and medicaid benefits.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5304.</designator> <label>Exemption from restriction on supplemental security income program participation by certain recipients eligible on the basis of very old applications.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5305.</designator> <label>Reinstatement of eligibility for benefits.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5306.</designator> <label>Treatment of certain Amerasian immigrants as refugees.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5307.</designator> <label>Verification of eligibility for State and local public benefits.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5308.</designator> <label>Effective date.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle E—</designator><label>Unemployment Compensation</label></referenceItem> <referenceItem role="section"><designator>Sec. 5401.</designator> <label>Clarifying provision relating to base periods.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5402.</designator> <label>Increase in Federal unemployment account ceiling.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5403.</designator> <label>Special distribution to States from Unemployment Trust Fund.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5404.</designator> <label>Interest-free advances to State accounts in Unemployment Trust Fund restricted to States which meet funding goals.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5405.</designator> <label>Exemption of service performed by election workers from the Federal unemployment tax.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5406.</designator> <label>Treatment of certain services performed by inmates.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5407.</designator> <label>Exemption of service performed for an elementary or secondary school operated primarily for religious purposes from the Federal unemployment tax.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5408.</designator> <label>State program integrity activities for unemployment compensation.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle F—</designator><label>Welfare Reform Technical Corrections</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 1—</designator><label>BLOCK GRANTS FOR TEMPORARY ASSISTANCE TO NEEDY FAMILIES</label></referenceItem> <referenceItem role="section"><designator>Sec. 5501.</designator> <label>Eligible States; State plan.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5502.</designator> <label>Grants to States.<page identifier="/us/stat/111/576">111 STAT. 576</page></label></referenceItem> <referenceItem role="section"><designator>Sec. 5503.</designator> <label>Use of grants.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5504.</designator> <label>Mandatory work requirements.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5505.</designator> <label>Prohibitions; requirements.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5506.</designator> <label>Penalties.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5507.</designator> <label>Data collection and reporting.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5508.</designator> <label>Direct funding and administration by Indian Tribes.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5509.</designator> <label>Research, evaluations, and national studies.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5510.</designator> <label>Report on data processing.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5511.</designator> <label>Study on alternative outcomes measures.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5512.</designator> <label>Limitation on payments to the territories.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5513.</designator> <label>Conforming amendments to the Social Security Act.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5514.</designator> <label>Other conforming amendments.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5515.</designator> <label>Modifications to the job opportunities for certain low-income individuals program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5516.</designator> <label>Denial of assistance and benefits for drug-related convictions.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5517.</designator> <label>Transition rule.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5518.</designator> <label>Effective dates.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 2—</designator><label>SUPPLEMENTAL SECURITY INCOME</label></referenceItem> <referenceItem role="section"><designator>Sec. 5521.</designator> <label>Conforming and technical amendments relating to eligibility restrictions.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5522.</designator> <label>Conforming and technical amendments relating to benefits for disabled children.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5523.</designator> <label>Additional technical amendments to title XVI.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5524.</designator> <label>Additional technical amendments relating to title XVI.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5525.</designator> <label>Technical amendments relating to drug addicts and alcoholics.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5526.</designator> <label>Advisory board personnel.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5527.</designator> <label>Timing of delivery of October 1, 2000, SSI benefit payments.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5528.</designator> <label>Effective dates.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 3—</designator><label>CHILD SUPPORT</label></referenceItem> <referenceItem role="section"><designator>Sec. 5531.</designator> <label>State obligation to provide child support enforcement services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5532.</designator> <label>Distribution of collected support.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5533.</designator> <label>Civil penalties relating to State Directory of New Hires.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5534.</designator> <label>Federal Parent Locator Service.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5535.</designator> <label>Access to registry data for research purposes.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5536.</designator> <label>Collection and use of social security numbers for use in child support enforcement</label></referenceItem> <referenceItem role="section"><designator>Sec. 5537.</designator> <label>Adoption of uniform State laws.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5538.</designator> <label>State laws providing expedited procedures.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5539.</designator> <label>Voluntary paternity acknowledgement.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5540.</designator> <label>Calculation of paternity establishment percentage.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5541.</designator> <label>Means available for provision of technical assistance and operation of Federal Parent Locator Service.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5542.</designator> <label>Authority to collect support from Federal employees.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5543.</designator> <label>Definition of support order.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5544.</designator> <label>State law authorizing suspension of licenses.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5545.</designator> <label>International support enforcement.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5546.</designator> <label>Child support enforcement for Indian tribes.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5547.</designator> <label>Continuation of rules for distribution of support in the case of a title IVE child.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5548.</designator> <label>Good cause in foster care and food stamp cases.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5549.</designator> <label>Date of collection of support.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5550.</designator> <label>Administrative enforcement in interstate cases.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5551.</designator> <label>Work orders for arrearages</label></referenceItem> <referenceItem role="section"><designator>Sec. 5552.</designator> <label>Additional technical State plan amendments.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5553.</designator> <label>Federal Case Registry of Child Support Orders.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5554.</designator> <label>Full faith and credit for child support orders.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5555.</designator> <label>Development costs of automated systems.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5556.</designator> <label>Additional technical amendments.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5557.</designator> <label>Effective date.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 4—</designator><label>RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS</label></referenceItem> <referenceItem role="subchapter"><designator>SUBCHAPTER A—</designator><label>ELIGIBILITY FOR FEDERAL BENEFITS</label></referenceItem> <referenceItem role="section"><designator>Sec. 5561.</designator> <label>Alien eligibility for Federal benefits: limited application to medicare and benefits under the Railroad Retirement Act.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5562.</designator> <label>Exceptions to benefit limitations: corrections to reference concerning aliens whose deportation is withheld.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5563.</designator> <label>Veterans exception: application of minimum active duty service requirement; extension to unremarried surviving spouse; expanded definition of veteran.<page identifier="/us/stat/111/577">111 STAT. 577</page></label></referenceItem> <referenceItem role="section"><designator>Sec. 5564.</designator> <label>Notification concerning aliens not lawfully present: correction of terminology.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5565.</designator> <label>Freely associated States: contracts and licenses.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5566.</designator> <label>Congressional statement regarding benefits for Hmong and other Highland Lao veterans.</label></referenceItem> <referenceItem role="subchapter"><designator>SUBCHAPTER B—</designator><label>GENERAL PROVISIONS</label></referenceItem> <referenceItem role="section"><designator>Sec. 5571.</designator> <label>Determination of treatment of battered aliens as qualified aliens; inclusion of alien child of battered parent as qualified alien.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5572.</designator> <label>Verification of eligibility for benefits.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5573.</designator> <label>Qualifying quarters: disclosure of quarters of coverage information; correction to assure that crediting applies to all quarters earned by parents before child is 18.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5574.</designator> <label>Statutory construction: benefit eligibility limitations applicable only with respect to aliens present in the United States.</label></referenceItem> <referenceItem role="subchapter"><designator>SUBCHAPTER C—</designator><label>MISCELLANEOUS CLERICAL AND TECHNICAL AMENDMENTS; EFFECTIVE DATE</label></referenceItem> <referenceItem role="section"><designator>Sec. 5581.</designator> <label>Correcting miscellaneous clerical and technical errors.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5582.</designator> <label>Effective date.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 5—</designator><label>CHILD PROTECTION</label></referenceItem> <referenceItem role="section"><designator>Sec. 5591.</designator> <label>Conforming and technical amendments relating to child protection.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5592.</designator> <label>Additional technical amendments relating to child protection.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5593.</designator> <label>Effective date.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 6—</designator><label>CHILD CARE</label></referenceItem> <referenceItem role="section"><designator>Sec. 5601.</designator> <label>Conforming and technical amendments relating to child care.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5602.</designator> <label>Additional conforming and technical amendments.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5603.</designator> <label>Effective dates.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 7—</designator><label>ERISA AMENDMENTS RELATING TO MEDICAL CHILD SUPPORT ORDERS</label></referenceItem> <referenceItem role="section"><designator>Sec. 5611.</designator> <label>Amendments relating to section 303 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5612.</designator> <label>Amendment relating to section 381 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5613.</designator> <label>Amendments relating to section 382 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle G—</designator><label>Miscellaneous</label></referenceItem> <referenceItem role="section"><designator>Sec. 5701.</designator> <label>Increase in public debt limit.</label></referenceItem> <referenceItem role="section"><designator>Sec. 5702.</designator> <label>Authorization of appropriations for enforcement initiatives related to the earned income tax credit.</label></referenceItem> </toc> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">References</inline>.—</heading><content>Except as otherwise expressly provided, wherever in this title an amendment or repeal is expressed in terms of an amendment to, or repeal of a section or other provision, the reference shall be considered to be made to a section or other provision of the Social Security Act.</content> </subsection> </section> <subtitle> <num value="A">Subtitle A—</num><heading>TANF Block Grant</heading> <section> <num value="5001">SEC. 5001.</num> <heading>WELFARE-TO-WORK GRANTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Grants to States</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 403(a) (42 U.S.C. 603(a)) is amended by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Welfare-to-work grants</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Formula grants</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Entitlement</inline>.—</heading><chapeau>A State shall be entitled to receive from the Secretary of Labor a grant for each fiscal year specified in subparagraph (I) of this paragraph for which the State is a welfare-to-work State, in an amount that does not exceed the lesser of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>2 times the total of the expenditures by the State (excluding qualified State expenditures <page identifier="/us/stat/111/578">111 STAT. 578</page>(as defined in section 409(a)(7)(B)(i)) and any expenditure described in subclause (I), (II), or (IV) of section 409(a)(7)(B)(iv)) during the fiscal year for activities described in subparagraph (C)(i) of this paragraph; or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the allotment of the State under clause (iii) of this subparagraph for the fiscal year.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Welfare-to-work state</inline>.—</heading><chapeau>A State shall be considered a welfare-to-work State for a fiscal year for purposes of this paragraph if the Secretary of Labor determines that the State meets the following requirements:</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <chapeau>The State has submitted to the Secretary of Labor and the Secretary of Health and Human Services (in the form of an addendum to the State plan submitted under section 402) a plan which—</chapeau> <item class="indent5 fontsize10"><num value="aa">“(aa)</num> <content>describes how, consistent with this subparagraph, the State will use any funds provided under this subparagraph during the fiscal year;</content></item> <item class="indent5 fontsize10"><num value="bb">“(bb)</num> <content>specifies the formula to be used pursuant to clause (vi) to distribute funds in the State, and describes the process by which the formula was developed;</content></item> <item class="indent5 fontsize10"><num value="cc">“(cc)</num> <content>contains evidence that the plan was developed in consultation and coordination with appropriate entitites in sub-State areas;</content></item> <item class="indent5 fontsize10"><num value="dd">“(dd)</num> <content>contains assurances by the Governor of the State that the private industry council (and any alternate agency designated by the Governor under item (ee)) for a service delivery area in the State will coordinate the expenditure of any funds provided under this subparagraph for the benefit of the service delivery area with the expenditure of the funds provided to the State under section 403(a)(1); and</content></item> <item class="indent5 fontsize10"><num value="ee">“(ee)</num> <content>if the Governor of the State desires to have an agency other than a private industry council administer the funds provided under this subparagraph for the benefit of 1 or more service delivery areas in the State, contains an application to the Secretary of Labor for a waiver of clause (vii)(I) with respect to the area or areas in order to permit an alternate agency designated by the Governor to so administer the funds.</content></item> </subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>The State has provided to the Secretary of Labor an estimate of the amount that the State intends to expend during the fiscal year (excluding expenditures described in section 409(a)(7)(B)(iv) (other than subclause (III) thereof)) pursuant to this paragraph.</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>The State has agreed to negotiate in good faith with the Secretary of Health and Human Services with respect to the substance and funding of any evaluation under section 413(j), <page identifier="/us/stat/111/579">111 STAT. 579</page>and to cooperate with the conduct of any such evaluation.</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>The State is an eligible State for the fiscal year.</content></subclause> <subclause class="indent4 fontsize10"><num value="V">“(V)</num> <content>The State certifies that qualified State expenditures (within the meaning of section 409(a)(7)) for the fiscal year will be not less than the applicable percentage of historic State expenditures (within the meaning of section 409(a)(7)) with respect to the fiscal year.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Allotments to welfare-to-work states</inline>.—</heading> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subject to this clause, the allotment of a welfare-to-work State for a fiscal year shall be the available amount for the fiscal year, multiplied by the State percentage for the fiscal year.</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <heading><inline class="smallCaps">Minimum allotment</inline>.—</heading><content>The allotment of a welfare-to-work State (other than Guam, the Virgin Islands, or American Samoa) for a fiscal year shall not be less than 0.25 percent of the available amount for the fiscal year.</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <heading><inline class="smallCaps">Pro rata reduction</inline>.—</heading><content>Subject to subclause (II), the Secretary of Labor shall make pro rata reductions in the allotments to States under this clause for a fiscal year as necessary to ensure that the total of the allotments does not exceed the available amount for the fiscal year.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <heading><inline class="smallCaps">Available amount</inline>.—</heading><chapeau>As used in this subparagraph, the term ‘available amount’ means, for a fiscal year, the sum of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <chapeau>75 percent of the sum of—</chapeau> <item class="indent5 fontsize10"><num value="aa">“(aa)</num> <content>the amount specified in subparagraph (I) for the fiscal year, minus the total of the amounts reserved pursuant to subparagraphs (E), (F), (G), and (H) for the fiscal year; and</content></item> <item class="indent5 fontsize10"><num value="bb">“(bb)</num> <content>any amount reserved pursuant to subparagraph (F) for the immediately preceding fiscal year that has not been obligated; and</content></item> </subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>any available amount for the immediately preceding fiscal year that has not been obligated by a State or sub-State entity.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <heading><inline class="smallCaps">State percentage</inline>.—</heading><chapeau>As used in clause (iii), the term ‘State percentage’ means, with respect to a fiscal year, ½ of the sum of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the percentage represented by the number of individuals in the State whose income is less than the poverty line divided by the number of such individuals in the United States; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the percentage represented by the number of adults who are recipients of assistance under the State program funded under this part divided by the number of adults in the United States who are recipients of assistance under any State program funded under this part.<page identifier="/us/stat/111/580">111 STAT. 580</page></content></subclause> </clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <heading><inline class="smallCaps">Procedure for distribution of funds within states</inline>.—</heading> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <heading><inline class="smallCaps">Allocation formula</inline>.—</heading><chapeau>A State to which a grant is made under this subparagraph shall devise a formula for allocating not less than 85 percent of the amount of the grant among the service delivery areas in the State, which—</chapeau> <item class="indent5 fontsize10"><num value="aa">“(aa)</num> <content>determines the amount to be allocated for the benefit of a service delivery area in proportion to the number (if any) by which the population of the area with an income that is less than the poverty line exceeds 7.5 percent of the total population of the area, relative to such number for all such areas in the State with such an excess, and accords a weight of not less than 50 percent to this factor;</content></item> <item class="indent5 fontsize10"><num value="bb">“(bb)</num> <content>may determine the amount to be allocated for the benefit of such an area in proportion to the number of adults residing in the area who have been recipients of assistance under the State program funded under this part (whether in effect before or after the amendments made by section 103(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 first applied to the State) for at least 30 months (whether or not consecutive) relative to the number of such adults residing in the State; and</content></item> <item class="indent5 fontsize10"><num value="cc">“(cc)</num> <content>may determine the amount to be allocated for the benefit of such an area in proportion to the number of unemployed individuals residing in the area relative to the number of such individuals residing in the State.</content></item> </subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <heading><inline class="smallCaps">Distribution of funds</inline>.—</heading> <item class="indent5 fontsize10"><num value="aa">“(aa)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If the amount allocated by the formula to a service delivery area is at least $100,000, the State shall distribute the amount to the entity administering the grant in the area.</content></item> <item class="indent5 fontsize10"><num value="bb">“(bb)</num> <heading><inline class="smallCaps">Special rule</inline>.—</heading><content>If the amount allocated by the formula to a service delivery area is less than $100,000, the sum shall be available for distribution in the State under subclause (III) during the fiscal year.</content></item> </subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <heading><inline class="smallCaps">Projects to help long-term recipients of assistance enter unsubsidized jobs</inline>.—</heading><content>The Governor of a State to which a grant is made under this subparagraph may distribute not more than 15 percent of the grant funds (plus any amount required to be distributed under this subclause by reason of subclause (II)(bb)) to projects that appear likely to help long-term recipients of assistance under the State program funded under this part (whether in effect before or after the <page identifier="/us/stat/111/581">111 STAT. 581</page>amendments made by section 103(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 first applied to the State) enter unsubsidized employment.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="vii">“(vii)</num> <heading><inline class="smallCaps">Administration</inline>.—</heading> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <heading><inline class="smallCaps">Private industry councils</inline>.—</heading><content>The private industry council for a service delivery area in a State shall have sole authority, in coordination with the chief elected official (as described in section 103(c) of the Job Training Partnership Act) of the area, to expend the amounts distributed under clause (vi)(II)(aa) for the benefit of the service delivery area, in accordance with the assurances described in clause (ii)(I)(dd) provided by the Governor of the State.</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <heading><inline class="smallCaps">Enforcement of coordination of expenditures with other expenditures under this part</inline>.—</heading><chapeau>Notwithstanding subclause (I) of this clause, on a determination by the Governor of a State that a private industry council (or an alternate agency described in clause (ii)(I)(dd)) has used funds provided under this subparagraph in a manner inconsistent with the assurances described in clause (ii)(I)(dd)—</chapeau> <item class="indent5 fontsize10"><num value="aa">“(aa)</num> <content>the private industry council (or such alternate agency) shall remit the funds to the Governor; and</content></item> <item class="indent5 fontsize10"><num value="bb">“(bb)</num> <content>the Governor shall apply to the Secretary of Labor for a waiver of subclause (I) of this clause with respect to the service delivery area or areas involved in order to permit an alternate agency designated by the Governor to administer the binds in accordance with the assurances.</content></item> </subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <heading><inline class="smallCaps">Authority to permit use of alternate administering agency</inline>.—</heading><content>The Secretary of Labor shall approve an application submitted under clause (ii)(I)(ee) or subclause (II)(bb) of this clause to waive subclause (I) of this clause with respect to 1 or more service delivery areas if the Secretary determines that the alternate agency designated in the application would improve the effectiveness or efficiency of the administration of amounts distributed under clause (vi)(II)(aa) for the benefit of the area or areas.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="viii">“(viii)</num> <heading><inline class="smallCaps">Data to be used in determining the number of adult tanf recipients</inline>.—</heading><content>For purposes of this subparagraph, the number of adult recipients of assistance under a State program funded under this part for a fiscal year shall be determined using data for the most recent 12-month period for which such data is available before the beginning of the fiscal year.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Competitive grants</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The Secretary of Labor shall award grants in accordance with this subparagraph, in fiscal years 1998 and 1999, for projects proposed by eligible applicants, based on the following:<page identifier="/us/stat/111/582">111 STAT. 582</page></chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <chapeau>The effectiveness of the proposal in—</chapeau> <item class="indent5 fontsize10"><num value="aa">“(aa)</num> <content>expanding the base of knowledge about programs aimed at moving recipients of assistance under State programs funded under this part who are least job ready into unsubsidized employment.</content></item> <item class="indent5 fontsize10"><num value="bb">“(bb)</num> <content>moving recipients of assistance under State programs funded under this part who are least job ready into unsubsidized employment; and</content></item> <item class="indent5 fontsize10"><num value="cc">“(cc)</num> <content>moving recipients of assistance under State programs funded under this part who are least job ready into unsubsidized employment, even in labor markets that have a shortage of low-skill jobs.</content></item> </subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <chapeau>At the discretion of the Secretary of Labor, any of the following:</chapeau> <item class="indent5 fontsize10"><num value="aa">“(aa)</num> <content>The history of success of the applicant in moving individuals with multiple barriers into work.</content></item> <item class="indent5 fontsize10"><num value="bb">“(bb)</num> <content>Evidence of the applicant’s ability to leverage private, State, and local resources.</content></item> <item class="indent5 fontsize10"><num value="cc">“(cc)</num> <content>Use by the applicant of State and local resources beyond those required by subparagraph (A).</content></item> <item class="indent5 fontsize10"><num value="dd">“(dd)</num> <content>Plans of the applicant to coordinate with other organizations at the local and State level.</content></item> <item class="indent5 fontsize10"><num value="ee">“(ee)</num> <content>Use by the applicant of current or former recipients of assistance under a State program funded under this part as mentors, case managers, or service providers.</content></item> </subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Eligible applicants</inline>.—</heading><content>As used in clause (i), the term ‘eligible applicant’ means a private industry council for a service delivery area in a State, a political subdivision of a State, or a private entity applying in conjunction with the private industry council for such a service delivery area or with such a political subdivision, that submits a proposal developed in consultation with the Governor of the State.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Determination of grant amount</inline>.—</heading><content>In determining the amount of a grant to be made under this subparagraph for a project proposed by an applicant, the Secretary of Labor shall provide the applicant with an amount sufficient to ensure that the project has a reasonable opportunity to be successful, taking into account the number of long-term recipients of assistance under a State program funded under this part, the level of unemployment, the job opportunities and job growth, the poverty rate, and such other factors as the Secretary of Labor deems appropriate, in the area to be served by the project.</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <heading><inline class="smallCaps">Consideration of needs of rural areas and cities with large concentrations of poverty</inline>.—</heading><content>In making grants under this subparagraph, the Secretary of Labor shall consider the needs of rural <page identifier="/us/stat/111/583">111 STAT. 583</page>areas and cities with large concentrations of residents with an income that is less than the poverty line.</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <heading><inline class="smallCaps">Funding</inline>.—</heading><chapeau>For grants under this subparagraph for each fiscal year specified in subparagraph (I), there shall be available to the Secretary of Labor an amount equal to the sum of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <chapeau>25 percent of the sum of—</chapeau> <item class="indent5 fontsize10"><num value="aa">“(aa)</num> <content>the amount specified in subparagraph (I) for the fiscal year, minus the total of the amounts reserved pursuant to subparagraphs (E), (F), (G), and (H) for the fiscal year; and</content></item> <item class="indent5 fontsize10"><num value="bb">“(bb)</num> <content>any amount reserved pursuant to subparagraph (F) for the immediately preceding fiscal year that has not been obligated; and</content></item> </subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>any amount available for grants under this subparagraph for the immediately preceding fiscal year that has not been obligated.</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Limitations on use of funds</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Allowable activities</inline>.—</heading><chapeau>An entity to which funds are provided under this paragraph shall use the funds to move individuals into and keep individuals in lasting unsubsidized employment by means of any of the following:</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>The conduct and administration of community service or work experience programs.</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>Job creation through public or private sector employment wage subsidies.</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>On-the-job training.</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>Contracts with public or private providers of readiness, placement, and post-employment services.</content></subclause> <subclause class="indent4 fontsize10"><num value="V">“(V)</num> <content>Job vouchers for placement, readiness, and postemployment services.</content></subclause> <subclause class="indent4 fontsize10"><num value="VI">“(VI)</num> <content>Job retention or support services if such services are not otherwise available.</content></subclause> <continuation class="indent0 fontsize10">Contracts or vouchers for job placement services supported by such funds must require that at least ½ of the payment occur after an eligible individual placed into the workforce has been in the workforce for 6 months.</continuation> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Required beneficiaries</inline>.—</heading><chapeau>An entity that operates a project with funds provided under this paragraph shall expend at least 70 percent of all funds provided to the project for the benefit of recipients of assistance under the program funded under this part of the State in which the entity is located, or for the benefit of noncustodial parents of minors whose custodial parent is such a recipient, who meet the requirements of each of the following subclauses:</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <chapeau>At least 2 of the following apply to the recipient:</chapeau> <item class="indent5 fontsize10"><num value="aa">“(aa)</num> <content>The individual has not completed secondary school or obtained a certificate of general equivalency, and has low skills in reading or mathematics.<page identifier="/us/stat/111/584">111 STAT. 584</page></content></item> <item class="indent5 fontsize10"><num value="bb">“(bb)</num> <content>The individual requires substance abuse treatment for employment.</content></item> <item class="indent5 fontsize10"><num value="cc">“(cc)</num> <content>The individual has a poor work history.</content></item> </subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <chapeau>The individual—</chapeau> <item class="indent5 fontsize10"><num value="aa">“(aa)</num> <content>has received assistance under the State program funded under this part (whether in effect before or after the amendments made by section 103 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 first apply to the State) for at least 30 months (whether or not consecutive); or</content></item> <item class="indent5 fontsize10"><num value="bb">“(bb)</num> <content>within 12 months, will become ineligible for assistance under the State program funded under this part by reason of a durational limit on such assistance, without regard to any exemption provided pursuant to section 408(a)(7)(C) that may apply to the individual.</content></item> </subclause> </clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Targeting of individuals with characteristics associated with long-term welfare dependence</inline>.—</heading><chapeau>An entity that operates a project with funds provided under this paragraph may expend not more than 30 percent of all funds provided to the project for programs that provide assistance in a form described in clause (i)—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>to recipients of assistance under the program funded under this part of the State in which the entity is located who have characteristics associated with long-term welfare dependence (such as school dropout, teen pregnancy, or poor work history), including, at the option of the State, by providing assistance in such form as a condition of receiving assistance under the State program funded under this part; or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <chapeau>to individuals—</chapeau> <item class="indent5 fontsize10"><num value="aa">“(aa)</num> <content>who are noncustodial parents of minors whose custodial parent is such a recipient; and</content></item> <item class="indent5 fontsize10"><num value="bb">“(bb)</num> <content>who have such characteristics.</content></item> </subclause> <continuation class="indent0 fontsize10">To the extent that the entity does not expend such funds in accordance with the preceding sentence, the entity shall expend such funds in accordance with clause (ii).</continuation> </clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <heading><inline class="smallCaps">Authority to provide work-related services to individuals who have reached the 5 year limit</inline>.—</heading><content>An entity that operates a project with funds provided under this paragraph may use the funds to provide assistance in a form described in clause (i) of this subparagraph to, or for the benefit of, individuals who (but for section 408(a)(7)) would be eligible for assistance under the program funded under this part of the State in which the entity is located.</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <heading><inline class="smallCaps">Relationship to other provisions of this part</inline>.—<page identifier="/us/stat/111/585">111 STAT. 585</page></heading> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <heading><inline class="smallCaps">Rules governing use of funds</inline>.—</heading><content>The rules of section 404, other than subsections (b), (f), and (h) of section 404, shall not apply to a grant made under this paragraph.</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <heading><inline class="smallCaps">Rules governing payments to states</inline>.—</heading><content>The Secretary of Labor shall carry out the functions otherwise assigned by section 405 to the Secretary of Health and Human Services with respect to the grants payable under this paragraph.</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <heading><inline class="smallCaps">Administration</inline>.—</heading><content>Section 416 shall not apply to the programs under this paragraph.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <heading><inline class="smallCaps">Prohibition against use of grant funds for any other fund matching requirement</inline>.—</heading><content>An entity to which funds are provided under this paragraph shall not use any part of the funds, nor any part of State expenditures made to match the funds, to fulfill any obligation of any State, political subdivision, or private industry council to contribute funds under section 403(b) or 418 or any other provision of this Act or other Federal law.</content></clause> <clause class="indent3 fontsize10"><num value="vii">“(vii)</num> <heading><inline class="smallCaps">Deadline for expenditure</inline>.—</heading><content>An entity to which funds are provided under this paragraph shall remit to the Secretary of Labor any part of the funds that are not expended within 3 years after the date the funds are so provided.</content></clause> <clause class="indent3 fontsize10"><num value="viii">“(viii)</num> <heading><inline class="smallCaps">Regulations</inline>.—</heading><content>Within 90 days after the date of the enactment of this paragraph, the Secretary of Labor, after consultation with the Secretary of Health and Human Services and the Secretary of Housing and Urban Development, shall prescribe such regulations as may be necessary to implement this paragraph.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Individuals with income less than the poverty line</inline>.—</heading><chapeau>For purposes of this paragraph, the number of individuals with an income that is less than the poverty line shall be determined for a fiscal year—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>based on the methodology used by the Bureau of the Census to produce and publish intercensal poverty data for States and counties (or, in the case of Puerto Rico, the Virgin Islands, Guam, and American Samoa, other poverty data selected by the Secretary of Labor); and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>using data for the most recent year for which such data is available before the beginning of the fiscal year.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Private industry council</inline>.—</heading><content>As used in this paragraph, the term ‘private industry council’ means, with respect to a service delivery area, the private industry council (or successor entity) established for the service delivery area pursuant to the Job Training Partnership Act.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Service delivery area</inline>.—</heading><content>As used in this paragraph, the term ‘service delivery area’ shall have the meaning given such term (or the successor to such <page identifier="/us/stat/111/586">111 STAT. 586</page>term) for purposes of the Job Training Partnership Act.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Set-aside for successful performance bonus</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary of Labor shall make a grant in accordance with this subparagraph to each successful performance State in fiscal year 2000.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Amount of grant</inline>.—</heading><content>The Secretary of Labor shall determine the amount of the grant payable under this subparagraph to a successful performance State, which shall be based on the score assigned to the State under clause (iv)(I)(aa) for such prior period as the Secretary of Labor deems appropriate.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Formula for measuring state performance</inline>.—</heading><chapeau>Not later than 1 year after the date of the enactment of this paragraph, the Secretary of Labor, in consultation with the Secretary of Health and Human Services, the National Governors’ Association, and the American Public Welfare Association, shall develop a formula for measuring—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the success of States in placing individuals in private sector employment or in any kind of employment, through programs operated with funds provided under subparagraph (A);</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the duration of such placements;</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>any increase in the earnings of such individuals; and</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>such other factors as the Secretary of Labor deems appropriate concerning the activities of the States with respect to such individuals.</content></subclause> <continuation class="indent0 fontsize10">The formula may take into account general economic conditions on a State-by-State basis.</continuation> </clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <heading><inline class="smallCaps">Scoring of state performance; setting of performance thresholds</inline>.—</heading> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The Secretary of Labor shall—</chapeau> <item class="indent5 fontsize10"><num value="aa">“(aa)</num> <content>use the formula developed under clause (iii) to assign a score to each State that was a welfare-to-work State for fiscal years 1998 and 1999; and</content></item> <item class="indent5 fontsize10"><num value="bb">“(bb)</num> <content>prescribe a performance threshold in such a manner so as to ensure that the total amount of grants to be made under this paragraph equals $100,000,000.</content></item> </subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <heading><inline class="smallCaps">Availability of welfare-to-work data submitted to the secretary of hhs</inline>.—</heading><content>The Secretary of Health and Human Services shall provide the Secretary of Labor with the data reported by States under this part with respect to programs operated with funds provided under subparagraph (A).</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <heading><inline class="smallCaps">Successful performance state defined</inline>.—</heading><content>As used in this subparagraph, the term ‘successful performance State’ means a State whose score assigned pursuant to clause (iv)(I)((aa) equals or exceeds the <page identifier="/us/stat/111/587">111 STAT. 587</page>performance threshold prescribed under clause (iv)(I)(bb).</content></clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <heading><inline class="smallCaps">Set-aside</inline>.—</heading><content>$100,000,000 of the amount specified in subparagraph (I) for fiscal year 1999 shall be reserved for grants under this subparagraph.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <heading><inline class="smallCaps">Funding for indian tribes</inline>.—</heading><content>1 percent of the amount specified in subparagraph (I) for fiscal year 1998 and of the amount so specified for fiscal year 1999 shall be reserved for grants to Indian tribes under section 412(a)(3).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <heading><inline class="smallCaps">Funding for evaluations of welfare-to-work programs</inline>.—</heading><content>0.6 percent of the amount specified in subparagraph (I) for fiscal year 1998 and of the amount so specified for fiscal year 1999 shall be reserved for use by the Secretary to carry out section 413(j).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num> <heading><inline class="smallCaps">Funding for evaluation of abstinence education programs</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>0.2 percent of the amount specified in subparagraph (I) for fiscal year 1998 and of the amount so specified for fiscal year 1999 shall be reserved for use by the Secretary to evaluate programs under section 510, directly or through grants, contracts, or interagency agreements.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Authority to use funds for evaluations of welfare-to-work programs</inline>.—</heading><content>Any such amount not required for such evaluations shall be available for use by the Secretary to carry out section 413(j).</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Deadline for outlays</inline>.—</heading><content>Outlays from funds used pursuant to clause (i) for evaluation of programs under section 510 shall not be made after fiscal year 2001.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="I">“(I)</num> <heading><inline class="smallCaps">Appropriations</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated $1,500,000,000 for each of fiscal years 1998 and 1999 for grants under this paragraph.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Availability</inline>.—</heading><content>The amounts made available pursuant to clause (i) shall remain available for such period as is necessary to make the grants provided for in this paragraph.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="J">“(J)</num> <heading><inline class="smallCaps">Worker protections</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Nondisplacement in work activities</inline>.—</heading> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <heading><inline class="smallCaps">General prohibition</inline>.—</heading><content>Subject to this clause, an adult in a family receiving assistance attributable to funds provided under this paragraph may fill a vacant employment position in order to engage in a work activity.</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <heading><inline class="smallCaps">Prohibition against violation of contracts</inline>.—</heading><content>A work activity engaged in under a program operated with funds provided under this paragraph shall not violate an existing contract for services or a collective bargaining agreement, and such a work activity that would violate a collective bargaining agreement shall not be undertaken without the written concurrence of the labor organization and employer concerned.<page identifier="/us/stat/111/588">111 STAT. 588</page></content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <heading><inline class="smallCaps">Other prohibitions</inline>.—</heading><chapeau>An adult participant in a work activity engaged in under a program operated with funds provided under this paragraph shall not be employed or assigned—</chapeau> <item class="indent5 fontsize10"><num value="aa">“(aa)</num> <content>when any other individual is on layoff from the same or any substantially equivalent job;</content></item> <item class="indent5 fontsize10"><num value="bb">“(bb)</num> <content>if the employer has terminated the employment of any regular employee or otherwise caused an involuntary reduction in its workforce with the intention of filling the vacancy so created with the participant; or</content></item> <item class="indent5 fontsize10"><num value="cc">“(cc)</num> <content>if the employer has caused an involuntary reduction to less than full time in hours of any employee in the same or a substantially equivalent job.</content></item> </subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Health and safety</inline>.—</heading><content>Health and safety standards established under Federal and State law otherwise applicable to working conditions of employees shall be equally applicable to working conditions of other participants engaged in a work activity under a program operated with funds provided under this paragraph.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Nondiscrimination</inline>.—</heading><content>In addition to the protections provided under the provisions of law specified in section 408(c), an individual may not be discriminated against by reason of gender with respect to participation in work activities engaged in under a program operated with funds provided under this paragraph.</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <heading><inline class="smallCaps">Grievance procedure</inline>.—</heading> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Each State to which a grant is made under this paragraph shall establish and maintain a procedure for grievances or complaints from employees alleging violations of clause (i) and participants in work activities alleging violations of clause (i), (ii), or (iii).</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <heading><inline class="smallCaps">Hearing</inline>.—</heading><content>The procedure shall include an opportunity for a hearing.</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <heading><inline class="smallCaps">Remedies</inline>.—</heading><chapeau>The procedure shall include remedies for violation of clause (i), (ii), or (iii), which may continue during the pendency of the procedure, and which may include—</chapeau> <item class="indent5 fontsize10"><num value="aa">“(aa)</num> <content>suspension or termination of payments from funds provided under this paragraph;</content></item> <item class="indent5 fontsize10"><num value="bb">“(bb)</num> <content>prohibition of placement of a participant with an employer that has violated clause (i), (ii), or (iii);</content></item> <item class="indent5 fontsize10"><num value="cc">“(cc)</num> <content>where applicable, reinstatement of an employee, payment of lost wages and benefits, and reestablishment of other relevant terms, conditions and privileges of employment; and</content></item> <item class="indent5 fontsize10"><num value="dd">“(dd)</num> <content>where appropriate, other equitable relief.</content></item> </subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <heading><inline class="smallCaps">Appeals</inline>.—<page identifier="/us/stat/111/589">111 STAT. 589</page></heading> <item class="indent5 fontsize10"><num value="aa">“(aa)</num> <heading><inline class="smallCaps">Filing</inline>.—</heading><content>Not later than 30 days after a grievant or complainant receives an adverse decision under the procedure established pursuant to subclause (I), the grievant or complainant may appeal the decision to a State agency designated by the State which shall be independent of the State or local agency that is administering the programs operated with funds provided under this paragraph and the State agency administering, or supervising the administration of, the State program funded under this part.</content></item> <item class="indent5 fontsize10"><num value="bb">“(bb)</num> <heading><inline class="smallCaps">Final determination</inline>.—</heading><content>Not later than 120 days after the State agency designated under item (aa) receives a grievance or complaint made under the procedure established by a State pursuant to subclause (I), the State agency shall make a final determination on the appeal.</content></item> </subclause> </clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <heading><inline class="smallCaps">Rule of interpretation</inline>.—</heading><content>This subparagraph shall not be construed to affect the authority of a State to provide or require workers’ compensation.</content></clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <heading><inline class="smallCaps">Nonpreemption of state law</inline>.—</heading><content>The provisions of this subparagraph shall not be construed to preempt any provision of State law that affords greater protections to employees or to other participants engaged in work activities under a program funded under this part than is afforded by such provisions of this subparagraph.”.</content></clause> </subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conforming amendment</inline>.—</heading><content>Section 409(a)(7)(B)(iv) of such Act (42 U.S.C. 609(a)(7)(B)(iv)) is amended to read as follows: <quotedContent> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <heading><inline class="smallCaps">Expenditures by the state</inline>.—</heading><chapeau>The term ‘expenditures by the State’ does not include—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>any expenditure from amounts made available by the Federal Government;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>any State funds expended for the medicaid program under title XIX;</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>any State funds which are used to match Federal funds provided under section 403(a)(5); or</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>any State funds which are expended as a condition of receiving Federal funds other than under this part.</content></subclause> <continuation class="indent0 fontsize10">Notwithstanding subclause (IV) of the preceding sentence, such term includes expenditures by a State for child care in a fiscal year to the extent that the total amount of the expenditures does not exceed the amount of State expenditures in fiscal year 1994 or 1995 (whichever is the greater) that equal the non-Federal share for the programs described in section 418(a)(1)(A).”.</continuation> </clause> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Grants to Outlying Areas</inline>.—</heading><content>Section 1108(a)(2) (42 U.S.C. 1308(a)(2)), as amended by section 5512(a) of this Act, is amended by inserting “<quotedText>403(a)(5),</quotedText>” after “403(a)(4),”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Grants to Indian Tribes</inline>.—</heading><content>Section 412(a) (42 U.S.C. 612(a)) is amended by adding at the end the following:<page identifier="/us/stat/111/590">111 STAT. 590</page> <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Welfare-to-work grants</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary of Labor shall award a grant in accordance with this paragraph to an Indian tribe for each fiscal year specified in section 403(a)(5)(I) for which the Indian tribe is a welfare-to-work tribe, in such amount as the Secretary of Labor deems appropriate, subject to subparagraph (B) of this paragraph.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Welfare-to-work tribe</inline>.—</heading><chapeau>An Indian tribe shall be considered a welfare-to-work tribe for a fiscal year for purposes of this paragraph if the Indian tribe meets the following requirements:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>The Indian tribe has submitted to the Secretary of Labor a plan which describes how, consistent with section 403(a)(5), the Indian tribe will use any funds provided under this paragraph during the fiscal year. If the Indian tribe has a tribal family assistance plan, the plan referred to in the preceding sentence shall be in the form of an addendum to the tribal family assistance plan.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>The Indian tribe is operating a program under a tribal family assistance plan approved by the Secretary of Health and Human Services, a program described in paragraph (2)(C), or an employment program funded through other sources under which substantial services are provided to recipients of assistance under a program funded under this part.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>The Indian tribe has provided the Secretary of Labor with an estimate of the amount that the Indian tribe intends to expend during the fiscal year (excluding tribal expenditures described in section 409(a)(7)(B)(iv) (other than subclause (III) thereof)) pursuant to this paragraph.</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>The Indian tribe has agreed to negotiate in good faith with the Secretary of Health and Human Services with respect to the substance and funding of any evaluation under section 413(j), and to cooperate with the conduct of any such evaluation.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> <heading><inline class="smallCaps">Limitations on use of funds</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 403(a)(5)(C) shall apply to funds provided to Indian tribes under this paragraph in the same manner in which such section applies to funds provided under section 403(a)(5).</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Waiver authority</inline>.—</heading><content>The Secretary of Labor may waive or modify the application of a provision of section 403(a)(5)(C) (other than clause (vii) thereof) with respect to an Indian tribe to the extent necessary to enable the Indian tribe to operate a more efficient or effective program with the funds provided under this paragraph.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Regulations</inline>.—</heading><content>Within 90 days after the date of the enactment of this paragraph, the Secretary of Labor, after consultation with the Secretary of Health and Human Services and the Secretary of Housing and Urban Development, shall prescribe such regulations as may be necessary to implement this paragraph.”.<page identifier="/us/stat/111/591">111 STAT. 591</page></content></clause> </subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Funds Received From Grants to be Disregarded in Applying Durational Limit on Assistance</inline>.—</heading><content>Section 408(a)(7) (42 U.S.C. 608(a)(7)) is amended by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <heading><inline class="smallCaps">Inapplicability To welfare-to-work grants and assistance</inline>.—</heading><content>For purposes of subparagraph (A) of this paragraph, a grant made under section 403(a)(5) shall not e considered a grant made under section 403, and noncash assistance from funds provided under section 403(a)(5) shall not be considered assistance.”.</content></subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Data Collection and Reporting</inline>.—</heading><chapeau>Section 411(a) (42 U.S.C. 611(a)(1)(A)), as amended by section 5507 of this Act, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in paragraph (1)(A), by adding at the end the following: <quotedContent> <clause class="indent3 fontsize10"><num value="xviii">“(xviii)</num> <chapeau>With respect to families participating in a program operated with funds provided under section 403(a)(5)—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>any activity described in section 403(a)(5)(C)(i) engaged in by a family member;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the total amount expended during the month on the family member for each such activity;</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>if the family member is engaged in subsidized employment or on-the-job training under the program, the wage paid to the family member and the amount of any wage subsidy provided to the family member from Federal or State funds; and</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>if the participation of a family member in the program was ended during a month due to the family member obtaining employment, the wage of the family member in the employment and whether the participation was ended due to the family member obtaining unsubsidized employment, obtaining subsidized employment, receiving an increased wage, engaging in a work training activity funded under a program funded other than under section 403(a)(5), or for other reasons.”;</content></subclause> </clause> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in paragraph (2), by inserting “<quotedText>, with a separate statement of the percentage of such funds that are used to cover administrative costs or overhead incurred for programs operated with funds provided under section 403(a)(5)</quotedText>” before the period;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>in paragraph (3), by inserting “<quotedText>, with a separate statement of the total amount expended by the State during the quarter on programs operated with funds provided under section 403(a)(5)</quotedText>” before the period;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num><content> in paragraph (4), by inserting “<quotedText>, with a separate statement of the number of such parents who participated in programs operated with funds provided under section 403(a)(5)</quotedText>” before the period;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <chapeau>in paragraph (6)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>and</quotedText>” at the end of subparagraph (A);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking the period at the end of subparagraph (B) and inserting “<quotedText>; and</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <chapeau>with respect to families and individuals participating in a program operated with funds provided under section 403(a)(5)—<page identifier="/us/stat/111/592">111 STAT. 592</page></chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the total number of such families and individuals; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the number of such families and individuals whose participation in such a program was terminated during a month.” and</content></clause> </subparagraph> </quotedContent> </content></subparagraph> </paragraph> <subparagraph class="indent2 fontsize10"><num value="6">(6)</num> <content>in paragraph (7), by inserting “<quotedText>, and shall consult with the Secretary of Labor in defining the data elements with respect to programs operated with funds provided under section 403(a)(5)</quotedText>” before the period.</content></subparagraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Evaluations</inline>.—</heading><content>Section 413 (42 U.S.C. 613) is amended by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="j">“(j)</num> <heading><inline class="smallCaps">Evaluation of Welfare-to-Work Programs</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Evaluation</inline>.—</heading><chapeau>The Secretary, in consultation with the Secretary of Labor and the Secretary of Housing and Urban Development—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>shall develop a plan to evaluate how grants made under sections 403(a)(5) and 412(a)(3) have been used;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>may evaluate the use of such grants by such grantees as the Secretary deems appropriate, in accordance with an agreement entered into with the grantees after good-faith negotiations; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <chapeau>is urged to include the following outcome measures in the plan developed under subparagraph (A):</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>Placements in unsubsidized employment, and placements in unsubsidized employment that last for at least 6 months.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>Placements in the private and public sectors.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>Earnings of individuals who obtain employment.</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>Average expenditures per placement.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Reports to the congress</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subject to subparagraphs (B) and (C), the Secretary, in consultation with the Secretary of Labor and the Secretary of Housing and Urban Development, shall submit to the Congress reports on the projects funded under section 403(a)(5) and 412(a)(3) and on the evaluations of the projects.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Interim report</inline>.—</heading><content>Not later than January 1, 1999, the Secretary shall submit an interim report on the matter described in subparagraph (A).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Final report</inline>.—</heading><content>Not later than January 1, 2001, (or at a later date, if the Secretary informs the Committees of the Congress with jurisdiction over the subject matter of the report) the Secretary shall submit a final report on the matter described in subparagraph (A).”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="g">(g)</num> <heading><inline class="smallCaps">Penalties</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Penalty for failure of state to maintain historic effort during year in which welfare-to-work grant is received</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 409(a) (42 U.S.C. 609(a)) is amended by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="13">“(13)</num> <heading><inline class="smallCaps">Penalty for failure of state to maintain historic effort during year in which welfare-to-work grant is received</inline>.—</heading><content>If a grant is made to a State under section 403(a)(5)(A) for a fiscal year and paragraph (7) of this subsection requires the grant payable to the State under section 403(a)(1) to be reduced for the immediately succeeding fiscal <page identifier="/us/stat/111/593">111 STAT. 593</page>year, then the Secretary shall reduce the grant payable to the State under section 403(a)(1) for such succeeding fiscal year by the amount of the grant made to the State under section 403(a)(5)(A) for the fiscal year.”.</content></paragraph> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Inapplicability of good cause exception</inline>.—</heading><content>Section 409(b)(2) of such Act (42 U.S.C. 609(b)(2)), as amended by section 5506(k) of this Act, is amended by striking “<quotedText>or (12)</quotedText>” and inserting “<quotedText>(12), or (13)</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <heading><inline class="smallCaps">Inapplicability of corrective compliance plan</inline>.—</heading><content>Section 409(c)(4) of such Act (42 U.S.C. 609(c)(4)), as amended by section 5506(m) of this Act, is amended by striking “<quotedText>or (12)</quotedText>” and inserting “<quotedText>(12), or (13)</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Penalty for misuse of competitive welfare-to-work funds</inline>.—</heading><content>Section 409(a)(1) of such Act (42 U.S.C. 609(a)(1)) is amended by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Penalty for misuse of competitive welfare-to-work funds</inline>.—</heading><content>If the Secretary of Labor finds that an amount paid to an entity under section 403(a)(5)(B) has been used in violation of subparagraph (B) or (C) of section 403(a)(5), the entity shall remit to the Secretary of Labor an amount equal to the amount so used.”.</content></subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h)</num> <heading><inline class="smallCaps">Clarification That Sanctions Against Recipients Under TANF Program are not Wage Reductions</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Section 408 (42 U.S.C. 608) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by redesignating subsections (c) and (d) as subsections (a) and (e), respectively; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by inserting after subsection (b) the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Sanctions Against Recipients Not Considered Wage Reductions</inline>.—</heading><content>A penalty imposed by a State against the family of an individual by reason of the failure of the individual to comply with a requirement under the State program funded under this part shall not be construed to be a reduction in any wage paid to the individual.”.</content> </subsection> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Retroactivity</inline>.—</heading><content>The amendments made by paragraph<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s608">42 USC 608 note</ref>.</p></sidenote> (1) shall take effect as if included in the enactment of section 103(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="i">(i)</num> <heading><inline class="smallCaps">GAO Study of Effect of Family Violence on Need 42 for Public Assistance</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s613">42 USC 613 note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Study</inline>.—</heading><content>The Comptroller General shall conduct a study of the effect of family violence on the use of public assistance programs, and in particular the extent to which family violence prolongs or increases the need for public assistance.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Report</inline>.—</heading><content>Within 1 year after the date of the enactment of this Act, the Comptroller General shall submit to the Committees on Ways and Means and Education and the Workforce of the House of Representatives and the Committee on Finance of the Senate a report that contains the findings of the study required by paragraph (1).</content></paragraph> </subsection> </section> <section> <num value="5002">SEC. 5002.</num> <heading>LIMITATION ON AMOUNT OF FEDERAL FUNDS TRANSFERABLE TO TITLE XX PROGRAMS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 404(d) (42 U.S.C. 604(d)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in paragraph (1), by striking “<quotedText>A State may</quotedText>” and inserting “<quotedText>Subject to paragraph (2), a State may</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by amending paragraph (2) to read as follows:<page identifier="/us/stat/111/594">111 STAT. 594</page> <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Limitation on amount transferable to title xx programs</inline>.—</heading><content>A State may use not more than 10 percent of the amount of any grant made to the State under section 403(a) for a fiscal year to carry out State programs pursuant to title XX.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s604">42 USC 604 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Retroactivity</inline>.—</heading><content>The amendments made by subsection (a) of this section shall take effect as if included in the enactment of section 103(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.</content> </subsection> </section> <section> <num value="5003">SEC. 5003.</num> <heading>LIMITATION ON NUMBER OF PERSONS WHO MAY BE TREATED AS ENGAGED IN WORK BY REASON OF PARTICIPATION IN EDUCATIONAL ACTIVITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 407(c)(2)(D) (42 U.S.C. 607(c)(2)(D)) is amended to read as follows: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Limitation on number of persons who may be treated as engaged in work by reason of participation in educational activities</inline>.—</heading><content>For purposes of determining monthly participation rates under paragraphs (1)(B)(i) and (2)(B) of subsection (b), not more than 30 percent of the number of individuals in all families and in 2-parent families, respectively, in a State who are treated as engaged in work for a month may consist of individuals who are determined to be engaged in work for the month by reason of participation in vocational educational training, or (if the month is in fiscal year 2000 or thereafter) deemed to be engaged in work for the month by reason of subparagraph (C) of this paragraph.”.</content></subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s607">42 USC 607 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Retroactivity</inline>.—</heading><content>The amendment made by subsection (a) of this section shall take effect as if included in the enactment of section 103(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.</content> </subsection> </section> <section> <num value="5004">SEC. 5004.</num> <heading>PENALTY FOR FAILURE OF STATE TO REDUCE ASSISTANCE FOR RECIPIENTS REFUSING WITHOUT GOOD CAUSE TO WORK.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 409(a) (42 U.S.C. 609(a)), as amended by section 5001(f)(1)(A) of this Act, is amended by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="14">“(14)</num> <heading><inline class="smallCaps">Penalty for failure to reduce assistance for recipients refusing without good cause to work</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If the Secretary determines that a State to which a grant is made under section 403 in a fiscal year has violated section 407(e) during the fiscal year, the Secretary shall reduce the grant payable to the State under section 403(a)(1) for the immediately succeeding fiscal year by an amount equal to not less than 1 percent and not more than 5 percent of the State family assistance grant.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Penalty based on severity of failure</inline>.—</heading><content>The Secretary shall impose reductions under subparagraph (A) with respect to a fiscal year based on the degree of non-compliance.”.</content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s609">42 USC 609 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Retroactivity</inline>.—</heading><content>The amendment made by subsection (a) of this section shall take effect as if included in the enactment of section 103(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.<page identifier="/us/stat/111/595">111 STAT. 595</page></content> </subsection> </section> </subtitle> <subtitle> <num value="B">Subtitle B—</num><heading>Supplemental Security Income</heading> <section> <num value="5101">SEC. 5101.</num> <heading>EXTENSION OF DEADLINE TO PERFORM CHILDHOOD DISABILITY REDETERMINATIONS.</heading> <chapeau>Section 211(d)(2) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104–193; 110 Stat. 2190) is amended—<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1382c">42 USC 1382c note</ref>.</p></sidenote></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in subparagraph (A)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in the 1st sentence, by striking “<quotedText>1 year</quotedText>” and inserting “<quotedText>18 months</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by inserting after the 1st sentence the following: “Any redetermination required by the preceding sentence that is not performed before the end of the period described in the preceding sentence shall be performed as soon as is practicable thereafter.”; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subparagraph (C), by adding at the end the following: “<quotedText>Before commencing a redetermination under the 2nd sentence<sidenote><p class="indent0 firstIndent0 fontsize8">Notification.</p></sidenote> of subparagraph (A), in any case in which the individual involved has not already been notified of the provisions of this paragraph, the Commissioner of Social Security shall notify the individual involved of the provisions of this paragraph.</quotedText>”.</content></paragraph> </section> <section> <num value="5102">SEC. 5102.</num> <heading>FEES FOR FEDERAL ADMINISTRATION OF STATE SUPPLEMENTARY PAYMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Fee Schedule</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Optional state supplementary payments</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Section 1616(d)(2)(B) (42 U.S.C. 1382e(d)(2)(B)) is amended—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by striking “<quotedText>and</quotedText>” at the end of clause (iii); and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking clause (iv) and inserting the following: <quotedContent> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>for fiscal year 1997, $5.00;</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>for fiscal year 1998, $6.20;</content></clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <content>for fiscal year 1999, $7.60;</content></clause> <clause class="indent3 fontsize10"><num value="vii">“(vii)</num> <content>for fiscal year 2000, $7.80;</content></clause> <clause class="indent3 fontsize10"><num value="viii">“(viii)</num> <content>for fiscal year 2001, $8.10;</content></clause> <clause class="indent3 fontsize10"><num value="ix">“(ix)</num> <content>for fiscal year 2002, $8.50; and</content></clause> <clause class="indent3 fontsize10"><num value="x">“(x)</num> <chapeau>for fiscal year 2003 and each succeeding fiscal year—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the applicable rate in the preceding fiscal year, increased by the percentage, if any, by which the Consumer Price Index for the month of June of the calendar year of the increase exceeds the Consumer Price Index for the month of June of the calendar year preceding the calendar year of the increase, and rounded to the nearest whole cent; or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>such different rate as the Commissioner determines is appropriate for the State.”.</content></subclause> </clause> </quotedContent> </content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Conforming amendment</inline>.—</heading><content>Section 1616(d)(2)(C) of such Act (42 U.S.C. 1382e(d)(2)(C)) is amended by striking “<quotedText>(B)(iv)</quotedText>” and inserting “<quotedText>(B)(x)(II)</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Mandatory state supplementary payments</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Section 212(b)(3)(B)(ii) of Public Law 93–66 (42 U.S.C. 1382 note) is amended—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by striking “<quotedText>and</quotedText>” at the end of subclause (III); and<page identifier="/us/stat/111/596">111 STAT. 596</page></content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking subclause (IV) and inserting the following: <quotedContent> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>for fiscal year 1997, $5.00;</content></subclause> <subclause class="indent4 fontsize10"><num value="V">“(V)</num> <content>for fiscal year 1998, $6.20;</content></subclause> <subclause class="indent4 fontsize10"><num value="VI">“(VI)</num> <content>for fiscal year 1999, $7.60;</content></subclause> <subclause class="indent4 fontsize10"><num value="VII">“(VII)</num> <content>for fiscal year 2000, $7.80;</content></subclause> <subclause class="indent4 fontsize10"><num value="VIII">“(VIII)</num> <content>for fiscal year 2001, $8.10;</content></subclause> <subclause class="indent4 fontsize10"><num value="IX">“(IX)</num> <content>for fiscal year 2002, $8.50; and</content></subclause> <subclause class="indent4 fontsize10"><num value="X">“(X)</num> <chapeau>for fiscal year 2003 and each succeeding fiscal year—</chapeau> <item class="indent5 fontsize10"><num value="aa">“(aa)</num> <content>the applicable rate in the preceding fiscal year, increased by the percentage, if any, by which the Consumer Price Index for the month of June of the calendar year of the increase exceeds the Consumer Price Index for the month of June of the calendar year preceding the calendar year of the increase, and rounded to the nearest whole cent; or</content></item> <item class="indent5 fontsize10"><num value="bb">“(bb)</num> <content>such different rate as the Commissioner determines is appropriate for the State.”.</content></item> </subclause> </quotedContent> </content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Conforming amendment</inline>.—</heading><content>Section 212(b)(3)(B)(iii) of such Act (42 U.S.C. 1382 note) is amended by striking “<quotedText>(ii)(IV)</quotedText>” and inserting “<quotedText>(ii)(X)(bb)</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Use of New Fees to Defray the Social Security Administration’s Administrative Expenses</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau><inline class="smallCaps">Credit to special fund for fiscal year 1998 and subsequent years</inline>.—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">Optional state supplementary payment fees</inline>.—</heading><content>Section 1616(d)(4) (42 U.S.C. 1382e(d)(4)) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num><subparagraph class="inline"><num value="A">(A)</num> <content>The first $5 of each administration fee assessed pursuant to paragraph (2), upon collection, shall be deposited in the general fund of the Treasury of the United States as miscellaneous receipts.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B)</num> <content>That portion of each administration fee in excess of $5, and 100 percent of each additional services fee charged pursuant to paragraph (3), upon collection for fiscal year 1998 and each subsequent fiscal year, shall be credited to a special fund established in the Treasury of the United States for State supplementary payment fees. The amounts so credited, to the extent and in the amounts provided in advance in appropriations Acts, shall be available to defray expenses incurred in carrying out this title and related laws. The amounts so credited shall not be scored as receipts under section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985, and the amounts so credited shall be credited as a discretionary offset to discretionary spending to the extent that the amounts so credited are made available for expenditure in appropriations Acts.”.</content></subparagraph> </paragraph> </quotedContent> </content></subparagraph> <paragraph class="indent1 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Mandatory state supplementary payment fees</inline>.—</heading><content>Section 212(b)(3)(D) of Public Law 93–66 (42 U.S.C. 1382 note) is amended to read as follows: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num><clause class="inline"><num value="i">(i)</num> <content>The first $5 of each administration fee assessed pursuant to subparagraph (B), upon collection, shall be deposited in the general fund of the Treasury of the United States as miscellaneous receipts.</content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii)</num> <content>The portion of each administration fee in excess of $5, and 100 percent of each additional services fee charged pursuant to subparagraph (C), upon collection for fiscal year 1998 and each subsequent fiscal year, shall be credited to a special fund established <page identifier="/us/stat/111/597">111 STAT. 597</page>in the Treasury of the United States for State supplementary payment fees. The amounts so credited, to the extent and in the amounts provided in advance in appropriations Acts, shall be available to defray expenses incurred in carrying out this section and title XVI of the Social Security Act and related laws. The amounts so credited shall not be scored as receipts under section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985, and the amounts so credited shall be credited as a discretionary offset to discretionary spending to the extent that the amounts so credited are made available for expenditure in appropriations Acts”.</content></clause> </subparagraph> </quotedContent> </content></paragraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Limitations on authorization of appropriations</inline>.—</heading><content><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1382e">42 USC 1382e note</ref>.</p></sidenote>From amounts credited pursuant to section 1616(d)(4)(B) of the Social Security Act and section 212(b)(3)(D)(ii) of Public Law 93–66 to the special fund established in the Treasury of the United States for State supplementary payment fees, there is authorized to be appropriated an amount not to exceed $35,000,000 for fiscal year 1998, and such sums as may be necessary for each fiscal year thereafter.</content></paragraph> </subsection> </section> </subtitle> <subtitle> <num value="C">Subtitle C—</num><heading>Child Support Enforcement</heading> <section> <num value="5201">SEC. 5201.</num> <heading>CLARIFICATION OF AUTHORITY TO PERMIT CERTAIN REDISCLOSURES OF WAGE AND CLAIM INFORMATION.</heading> <content>Section 303(h)(1)(C) (42 U.S.C. 503(h)(1)(C)) is amended by striking “<quotedText>section 453(i)(1) in carrying out the child support enforcement program under title IV</quotedText>” and inserting “<quotedText>subsections (i)(1), (i)(3), and (j) of section 453</quotedText>”.</content> </section> </subtitle> <subtitle> <num value="D">Subtitle D—</num><heading>Restricting Welfare and Public Benefits for Aliens</heading> <section> <num value="5301">SEC. 5301.</num> <heading>SSI ELIGIBILITY FOR ALIENS RECEIVING SSI ON AUGUST 22, 1096, AND DISABLED ALIENS LAWFULLY RESIDING IN THE UNITED STATES ON AUGUST 22, 1096.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">SSI Eligibility for Aliens Receiving SSI on August 22, 1996</inline>.—</heading><content>Section 402(a)(2) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)) is amended by adding after subparagraph (D) the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Aliens receiving ssi on august 22, 1996</inline>.—</heading><content>With respect to eligibility for benefits for the program defined in paragraph <page identifier="/us/stat/111/598">111 STAT. 598</page>(3)(A) (relating to the supplemental security income program), paragraph (1) shall not apply to an alien who is lawfully residing in the United States and who was receiving such benefits on August 22, 1996.”.</content></subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">SSI Eligibility for Disabled Aliens Lawfully Residing in the United States on August 22, 1996</inline>.—</heading><content>Section 402(a)(2) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)) is amended by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <heading><inline class="smallCaps">Disabled aliens lawfully residing in the united states on august 22, 1996</inline>.—</heading><chapeau>With respect to eligibility for benefits for the program defined in paragraph (3)(A) (relating to the supplemental security income program), paragraph (1) shall not apply to an alien who—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>was lawfully residing in the United States on August 22, 1996; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>is blind or disabled, as defined in section 1614(a)(2) or 1614(a)(3) of the Social Security Act (42 U.S.C. 1382c(a)(3)).”.</content></clause> </subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Extension of Grandfather Provision Relating to SSI Eligibility</inline>.—</heading><chapeau>Section 402(a)(2)(D)(i) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)(D)(i)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subclause (I), by striking “<quotedText>September 30, 1997,</quotedText>” and inserting “<quotedText>September 30, 1998,</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subclause (III), by striking “<quotedText>September 30, 1997,</quotedText>” and inserting “<quotedText>September 30, 1998</quotedText>”.</content></paragraph> </subsection> </section> <section> <num value="5302">SEC. 5302.</num> <heading>EXTENSION OF ELIGIBILITY PERIOD FOR REFUGEES AND CERTAIN OTHER QUALIFIED ALIENS FROM 5 TO 7 YEARS FOR SSI AND MEDICAID; STATUS OF CUBAN AND HAITIAN ENTRANTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading>SSI.—</heading><content>Section 402(a)(2)(A) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)(A)) is amended to read as follows: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Time-limited exception for refugees and asylees</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading>SSI.—</heading><chapeau>With respect to the specified Federal program described in paragraph (3)(A), paragraph (1) shall not apply to an alien until 7 years after the date—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>an alien is admitted to the United States as a refugee under section 207 of the Immigration and Nationality Act;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>an alien is granted asylum under section 208 of such Act;</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>an alien’s deportation is withheld under section 243(h) of such Act; or</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>an alien is granted status as a Cuban and Haitian entrant (as defined in section 501(e) of the Refugee Education Assistance Act of 1980).</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Food stamps</inline>.—</heading><chapeau>With respect to the specified Federal program described in paragraph (3)(B), paragraph (1) shall not apply to an alien until 5 years after the date—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>an alien is admitted to the United States as a refugee under section 207 of the Immigration and Nationality Act;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>an alien is granted asylum under section 208 of such Act;</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>an alien’s deportation is withheld under section 243(h) of such Act; or</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>an alien is granted status as a Cuban and Haitian entrant (as defined in section 501(e) of the Refugee Education Assistance Act of 1980).”.</content></subclause> </clause> </subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Medicaid</inline>.—</heading><content>Section 402(b)(2)(A) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(b)(2)(A)) is amended to read as follows:<page identifier="/us/stat/111/599">111 STAT. 599</page> <quotedContent> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Time-limited exception for refugees and asylees</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Medicaid</inline>.—</heading><chapeau>With respect to the designated Federal program described in paragraph (3)(C), paragraph (1) shall not apply to an alien until 7 years after the date—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>an alien is admitted to the United States as a refugee under section 207 of the Immigration and Nationality Act;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>an alien is granted asylum under section 208 of such Act;</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>an alien’s deportation is withheld under section 243(h) of such Act; or</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>an alien is granted status as a Cuban and Haitian entrant (as defined in section 501(e) of the Refugee Education Assistance Act of 1980).</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Other designated federal programs</inline>.—</heading><chapeau>With respect to the designated Federal programs under paragraph (3) (other than subparagraph (C)), paragraph (1) shall not apply to an alien until 5 years after the date—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>an alien is admitted to the United States as a refugee under section 207 of the Immigration and Nationality Act;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>an alien is granted asylum under section 208 of such Act;</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>an alien’s deportation is withheld under section 243(h) of such Act; or</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>an alien is granted status as a Cuban and Haitian entrant (as defined in section 501(e) of the Refugee Education Assistance Act of 1980).”.</content></subclause> </clause> </subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Status of Cuban and Haitian Entrants</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Federal means-tested public benefits</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Section 403(b)(1) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1613(b)(1)) is amended by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>An alien who is a Cuban and Haitian entrant as defined in section 501(e) of the Refugee Education Assistance Act of 1980.”.</content></subparagraph> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Section 403 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1613) is amended by striking subsection (d).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">State public benefits</inline>.—</heading><content>Section 412(b)(1) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1622(b)(1)) is amended by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>An alien who is a Cuban and Haitian entrant as defined in section 501(e) of the Refugee Education Assistance Act of 1980 until 5 years after the alien is granted such status.”</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Qualified alien defined</inline>.—</heading><chapeau>Section 431(b) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1641(b)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in paragraph (5) by striking “<quotedText>or</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in paragraph (6) by striking the period and inserting “<quotedText>; or</quotedText>”; and<page identifier="/us/stat/111/600">111 STAT. 600</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <content>an alien who is a Cuban and Haitian entrant (as defined in section 501(e) of the Refugee Education Assistance Act of 1980).”.</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> </subsection> </section> <section> <num value="5303">SEC. 5303.</num> <heading>EXCEPTIONS FOR CERTAIN INDIANS FROM LIMITATION ON ELIGIBILITY FOR SUPPLEMENTAL SECURITY INCOME AND MEDICAID BENEFITS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Exception From Limitation on SSI Eligibility</inline>.—</heading><content>Section 402(a)(2) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)) is amended by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <heading><inline class="smallCaps">SSI exception for certain indians</inline>.—</heading><chapeau>With respect to eligibility for benefits for the program defined in paragraph (3)(A) (relating to the supplemental security income program), section 401(a) and paragraph (1) shall not apply to any individual—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>who is an American Indian born in Canada to whom the provisions of section 289 of the Immigration and Nationality Act (8 U.S.C. 1359) apply; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>who is a member of an Indian tribe (as defined in section 4(e) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b(e))).”.</content></clause> </subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Exception From Limitation on Medicaid Eligibility</inline>.—</heading><content>Section 402(b)(2) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(b)(2)) is amended by inserting at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Medicaid exception for certain indians</inline>.—</heading><content>With respect to eligibility for benefits for the program defined in paragraph (3)(C) (relating to the medicaid program), section 401(a) and paragraph (1) shall not apply to any individual described in subsection (a)(2)(G).”.</content></subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">SSI and Medicaid Exceptions From Limitation on Eligibility of New Entrants</inline>.—</heading><content>Section 403 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1613) is amended by adding after subsection (c) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">”(d)</num> <heading><inline class="smallCaps">SSI and Medicaid Benefits for Certain Indians</inline>.—</heading><content>Notwithstanding any other provision of law, the limitations under section 401(a) and subsection (a) shall not apply to an individual described in section 402(a)(2)(G), but only with respect to the programs specified in subsections (a)(3)(A) and (b)(3)(C) of section 402.”.</content> </subsection> </quotedContent> </content></subsection> </section> <section> <num value="5304">SEC. 5304.</num> <heading>EXEMPTION FROM RESTRICTION ON SUPPLEMENTAL SECURITY INCOME PROGRAM PARTICIPATION BY CERTAIN RECIPIENTS ELIGIBLE ON THE BASIS OF VERY OLD APPLICATIONS.</heading> <content>Section 402(a)(2) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)) is amended by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num> <heading><inline class="smallCaps">SSI exception for certain recipients on the basis of very old applications</inline>.—</heading><chapeau>With respect to eligibility for benefits for the program defined in paragraph (3)(A) (relating to the supplemental security income program), paragraph (1) shall not apply to any individual—<page identifier="/us/stat/111/601">111 STAT. 601</page></chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>who is receiving benefits under such program for months after July 1996 on the basis of an application filed before January 1, 1979; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>with respect to whom the Commissioner of Social Security lacks clear and convincing evidence that such individual is an alien ineligible for such benefits as a result of the application of this section.”.</content></clause> </subparagraph> </quotedContent> </content></section> <section> <num value="5305">SEC. 5305.</num> <heading>REINSTATEMENT OF ELIGIBILITY FOR BENEFITS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Food Stamps</inline>.—</heading><content>The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 is amended by adding after section 435 the following new section: <quotedContent> <section> <num value="436">“SEC. 436.</num> <heading>DERIVATIVE ELIGIBILITY FOR BENEFITS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1646">8 USC 1646</ref>.</p></sidenote> <content>“Notwithstanding any other provision of law, an alien who under the provisions of this title is ineligible for benefits under the food stamp program (as defined in section 402(a)(3)(B)) shall not be eligible for such benefits because the alien receives benefits under the supplemental security income program (as defined in section 402(a)(3)(A)).”.</content> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Medicaid</inline>.—</heading><content>Section 402(b)(2) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(b)(2)) is amended by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <heading><inline class="smallCaps">Medicaid exception for aliens receiving ssi</inline>.—</heading><content>An alien who is receiving benefits under the program defined in subsection (a)(3)(A) (relating to the supplemental security income program) shall be eligible for medical assistance under a State plan under title XIX of the Social Security Act (42 U.S.C. 1396 et seq.) under the same terms and conditions that apply to other recipients of benefits under the program defined in such subsection.”.</content></subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections as contained in section 2 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 is amended by adding after the item relating to section 435 the following: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 436.</designator> <label>Derivative eligibility for benefits.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="5306">SEC. 5306.</num> <heading>TREATMENT OF CERTAIN AMERASIAN IMMIGRANTS AS REFUGEES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">For Purposes of SSI and Food Stamps</inline>.—</heading><chapeau>Section 402(a)(2)(A) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)(A)) as amended by section 5302 is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in clause (i)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>or</quotedText>” at the end of subclause (III);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking the period at the end of subclause (IV) and inserting “<quotedText>; or</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by adding at the end the following: <quotedContent> <subclause class="indent4 fontsize10"><num value="V">“(V)</num> <content>an alien is admitted to the United States as an Amerasian immigrant pursuant to section 584 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1988 (as contained in section 101(e) of Public Law 100202 and amended by the 9th proviso under <inline class="smallCaps">migration and refugee assistance</inline> in title II of the Foreign Operations, Export Financing, and Related <page identifier="/us/stat/111/602">111 STAT. 602</page>Programs Appropriations Act, 1989, Public Law 100–461, as amended).”; and</content></subclause> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>in clause (ii)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>or</quotedText>” at the end of subclause (III);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking the period at the end of subclause (IV) and inserting “<quotedText>; or</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by adding at the end the following: <quotedContent> <subclause class="indent4 fontsize10"><num value="V">“(V)</num> <content>an alien is admitted to the United States as an Amerasian immigrant as described in clause (i)(V).”.</content></subclause> </quotedContent> </content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">For Purposes of TANF, SSBG, and Medicaid</inline>.—</heading><chapeau>Section 402(b)(2)(A) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(b)(2)(A)) as amended by section 5302 is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in clause (i)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>or</quotedText>” at the end of subclause (III);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking the period at the end of subclause (IV) and inserting “<quotedText>; or</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by adding at the end the following: <quotedContent> <subclause class="indent4 fontsize10"><num value="V">“(V)</num> <content>an alien admitted to the United States as an Amerasian immigrant as described in subsection (a)(2)(A)(i)(V) until 5 years after the date of such alien’s entry into the United States.”; and</content></subclause> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>in clause (ii)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>or</quotedText>” at the end of subclause (III);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking the period at the end of subclause (IV) and inserting “<quotedText>; or</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by adding at the end the following: <quotedContent> <subclause class="indent4 fontsize10"><num value="V">“(V)</num> <content>an alien admitted to the United States as an Amerasian immigrant as described in subsection (a)(2)(A)(i)(V) until 5 years after the date of such alien’s entry into the United States.”.</content></subclause> </quotedContent> </content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">For Purposes of Exception From 5-Year Limited Eligibility of Qualified Aliens</inline>.—</heading><content>Section 403(b)(1) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1613(b)(1)) is amended by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>An alien admitted to the United States as an Amerasian immigrant as described in section 402(a)(2)(A)(i)(V).”.</content></subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">For Purposes of Certain State Programs</inline>.—</heading><content>Section 412(b)(1) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1622(b)(1)) is amended by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>An alien admitted to the United States as an Amerasian immigrant as described in section 402(a)(2)(A)(i)(V).”.</content></subparagraph> </quotedContent> </content></subsection> </section> <section> <num value="5307">SEC. 5307.</num> <heading>VERIFICATION OF ELIGIBILITY FOR STATE AND LOCAL PUBLIC BENEFITS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 is amended by adding after section 412 the following new section: <quotedContent> <section> <num value="413">“SEC. 413.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1625">8 USC 1625</ref>.</p></sidenote> <heading>AUTHORIZATION FOR VERIFICATION OF ELIGIBILITY FOR STATE AND LOCAL PUBLIC BENEFITS.</heading> <content>“A State or political subdivision of a State is authorized to require an applicant for State and local public benefits (as defined in section 411(c)) to provide proof of eligibility.”.<page identifier="/us/stat/111/603">111 STAT. 603</page></content> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections as contained in section 2 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 is amended by adding after the item relating to section 412 the following: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 413.</designator> <label>Authorization for verification of eligibility for state and local public benefits.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="5308">SEC. 5308.</num> <heading>EFFECTIVE DATE.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1612">8 USC 1612 note</ref>.</p></sidenote> <content>Except as otherwise provided, the amendments made by this subtitle shall be effective as if included in the enactment of title IV of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.</content> </section> </subtitle> <subtitle> <num value="E">Subtitle E—</num><heading>Unemployment Compensation</heading> <section> <num value="5401">SEC. 5401.</num> <heading>CLARIFYING PROVISION RELATING TO BASE PERIODS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s503">42 USC 503 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>No provision of a State law under which the base period for such State is defined or otherwise determined shall, for purposes of section 303(a)(1) of the Social Security Act (42 U.S.C. 503(a)(1)), be considered a provision for a method of administration.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><content>For purposes of this section, the terms “State law”, “base period”, and “State” shall have the meanings given them under section 205 of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>This section shall apply for purposes of any period beginning before, on, or after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="5402">SEC. 5402.</num> <heading>INCREASE IN FEDERAL UNEMPLOYMENT ACCOUNT CEILING.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 902(a)(2) (42 U.S.C. 1102(a)(2)) is amended by striking “<quotedText>0.25 percent</quotedText>” and inserting “<quotedText>0.5 percent</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><chapeau>This section and the amendment made<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1102">42 USC 1102 note</ref>.</p></sidenote> by this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>shall take effect on October 1, 2001, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>shall apply to fiscal years beginning on or after that date.</content></paragraph> </subsection> </section> <section> <num value="5403">SEC. 5403.</num> <heading>SPECIAL DISTRIBUTION TO STATES FROM UNEMPLOYMENT TRUST FUND.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (a) of section 903 (42 U.S.C. 1103(a)) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num><subparagraph class="inline"><num value="A">(A)</num> <chapeau>Notwithstanding any other provision of this section, for purposes of carrying out this subsection with respect to any excess amount (referred to in paragraph (1)) remaining in the employment security administration account as of the close of fiscal year 1999, 2000, or 2001, such amount shall—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>to the extent of any amounts not in excess of $100,000,000, be subject to subparagraph (B), and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>to the extent of any amounts in excess of $100,000,000, be subject to subparagraph (C).</content></clause> </subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B)</num> <chapeau>Paragraphs (1) and (2) shall apply with respect to any<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> amounts described in subparagraph (A)(i), except that—</chapeau> <clause><num value="i">“(i)</num> <chapeau>in carrying out the provisions of paragraph (2)(B) with respect to such amounts (to determine the portion of such <page identifier="/us/stat/111/604">111 STAT. 604</page>amounts which is to be allocated to a State for a succeeding fiscal year), the ratio to be applied under such provisions shall be the same as the ratio that—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the amount of funds to be allocated to such State for such fiscal year pursuant to the base allocation formula under title III, bears to</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the total amount of funds to be allocated to all States for such fiscal year pursuant to the base allocation formula under title III,</content></subclause> </clause> <continuation class="indent0 fontsize10">as determined by the Secretary of Labor, and</continuation> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the amounts allocated to a State pursuant to this subparagraph shall be available to such State, subject to the last sentence of subsection (c)(2).</content></clause> <continuation class="indent0 fontsize10">Nothing in this paragraph shall preclude the application of subsection (b) with respect to any allocation determined under this subparagraph.</continuation> </subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">“(C)</num> <content>Any amounts described in clause (ii) of subparagraph (A) (remaining in the employment security administration account as of the close of any fiscal year specified in such subparagraph) shall, as of the beginning of the succeeding fiscal year, accrue to the Federal unemployment account, without regard to the limit provided in section 902(a).”.</content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>Paragraph (2) of section 903(c) <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1103">42 USC 1103</ref>.</p></sidenote>of the Social Security Act is amended by adding at the end, as a flush left sentence, the following: <quotedContent> <p class="indent0 fontsize10">“Any amount allocated to a State under this section for fiscal year 2000, 2001, or 2002 may be used by such State only to pay expenses incurred by it for the administration of its unemployment compensation law, and may be so used by it without regard to any of the conditions prescribed in any of the preceding provisions of this paragraph.”.</p> </quotedContent> </content></subsection> </section> <section> <num value="5404">SEC. 5404.</num> <heading>INTEREST-FREE ADVANCES TO STATE ACCOUNTS IN UNEMPLOYMENT TRUST FUND RESTRICTED TO STATES WHICH MEET FUNDING GOALS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Paragraph (2) of section 1202(b) (42 U.S.C. 1322(b)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>and</quotedText>” at the end of subparagraph (A),</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking the period at the end of subparagraph (B) and inserting “<quotedText>, and</quotedText>”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>such State meets funding goals, established under regulations issued by the Secretary of Labor, relating to the accounts of the States in the Unemployment Trust Fund.”.</content></subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1322">42 USC 1322 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to calendar years beginning after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="5405">SEC. 5405.</num> <heading>EXEMPTION OF SERVICE PERFORMED BY ELECTION WORKERS FROM THE FEDERAL UNEMPLOYMENT TAX.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Paragraph (3) of section 3309(b) of the Internal Revenue Code of 1986 (relating to exemption for <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3309">26 USC 3309</ref>.</p></sidenote>certain services) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>or</quotedText>” at the end of subparagraph (D),</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding “<quotedText>or</quotedText>” at the end of subparagraph (E), and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by inserting after subparagraph (E) the following new subparagraph:<page identifier="/us/stat/111/605">111 STAT. 605</page> <quotedContent> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>as an election official or election worker if the amount of remuneration received by the individual during the calendar year for services as an election official or election worker is less than $1,000;”.</content></subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3309">26 USC 3309 note</ref>.</p></sidenote> shall apply with respect to service performed after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="5406">SEC. 5406.</num> <heading>TREATMENT OF CERTAIN SERVICES PERFORMED BY INMATES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Subsection (c) of section 3306 of the Internal Revenue Code of 1986 (defining employment) is amended—<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3306">26 USC 3306</ref>.</p></sidenote></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>or</quotedText>” at the end of paragraph (19),</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking the period at the end of paragraph (20) and inserting “<quotedText>; or</quotedText>”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="21">“(21)</num> <content>service performed by a person committed to a penal institution.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3306">26 USC 3306 note</ref>.</p></sidenote> 26 USC 3306 shall apply with respect to service performed after January 1, note 1994.</content> </subsection> </section> <section> <num value="5407">SEC. 5407.</num> <heading>EXEMPTION OF SERVICE PERFORMED FOR AN ELEMENTARY OR SECONDARY SCHOOL OPERATED PRIMARILY FOR RELIGIOUS PURPOSES FROM THE FEDERAL UNEMPLOYMENT TAX.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Paragraph (1) of section 3309(b) of the Internal Revenue Code of 1986 (relating to exemption for certain<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3309">26 USC 3309</ref>.</p></sidenote> services) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>or</quotedText>” at the end of subparagraph (A), and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting before the semicolon at the end the following: or (C) an elementary or secondary school which is operated primarily for religious purposes, which is described in section 501(c)(3), and which is exempt from tax under section 501(a)”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3309">26 USC 3309 note</ref>.</p></sidenote> shall apply with respect to service performed after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="5408">SEC. 5408.</num> <heading>STATE PROGRAM INTEGRITY ACTIVITIES FOR UNEMPLOYMENT COMPENSATION.</heading> <content>Section 901(c) (42 U.S.C. 1101(c)) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num><subparagraph class="inline"><num value="A">(A)</num> <chapeau>There are authorized to be appropriated out of the<sidenote><p class="indent0 firstIndent0 fontsize8">Appropriation authorization.</p></sidenote> employment security administration account to carry out program integrity activities, in addition to any amounts available under paragraph (1)(A)(i)—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>$89,000,000 for fiscal year 1998;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>$91,000,000 for fiscal year 1999;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>$93,000,000 fiscal year 2000;</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>$96,000,000 for fiscal year 2001; and</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>$98,000,000 for fiscal year 2002.</content></clause> </subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B)</num> <content>In any fiscal year in which a State receives funds appropriated pursuant to this paragraph, the State shall expend a proportion of the funds appropriated pursuant to paragraph (1)(A)(i) to carry out program integrity activities that is not less than the proportion of the funds appropriated under such paragraph that <page identifier="/us/stat/111/606">111 STAT. 606</page>was expended by the State to carry out program integrity activities in fiscal year 1997.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">“(C)</num> <content>For purposes of this paragraph, the term ‘program integrity activities’ means initial claims review activities, eligibility review activities, benefit payments control activities, and employer liability auditing activities.”.</content></subparagraph> </paragraph> </quotedContent> </content></section> </subtitle> <subtitle> <num value="F">Subtitle F—</num><heading>Welfare Reform Technical Corrections</heading> <chapter> <num value="1">CHAPTER 1—</num><heading>BLOCK GRANTS FOR TEMPORARY ASSISTANCE TO NEEDY FAMILIES</heading> <section> <num value="5501">SEC. 5501.</num> <heading>ELIGIBLE STATES; STATE PLAN.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Later Deadline for Submission of State Plans</inline>.—</heading><content>Section 402(a) (42 U.S.C. 602(a)) is amended by striking “<quotedText>2-year period immediately preceding</quotedText>” and inserting “<quotedText>27-month period ending with the close of the 1st quarter of</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Clarification of Scope of Work Provisions</inline>.—</heading><content>Section 402(a)(1)(A)(ii) (42 U.S.C. 602(a)(1)(A)(ii)) is amended by inserting “<quotedText>, consistent with section 407(e)(2)</quotedText>” before the period.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Correction of Cross-Reference</inline>.—</heading><content>Section 402(a)(1)(A)(v) (42 U.S.C. 602(a)(1)(A)(v)) is amended by striking “<quotedText>403(a)(2)(B)</quotedText>” and inserting “<quotedText>403(a)(2)(C)(iii)</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Notification of Plan Amendments</inline>.—</heading><chapeau>Section 402 (42 U.S.C. 602) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by redesignating subsection (b) as subsection (c) and inserting after subsection (a) the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Plan Amendments</inline>.—</heading><content>Within 30 days after a State amends a plan submitted pursuant to subsection (a), the State shall notify the Secretary of the amendment.”; and</content> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subsection (c) (as so redesignated), by inserting “<quotedText>or plan amendment</quotedText>” after “plan”.</content></paragraph> </subsection> </section> <section> <num value="5502">SEC. 5502.</num> <heading>GRANTS TO STATES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Bonus for Decrease in Illegitimacy Modified to Take Account of Certain Territories</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Section 403(a)(2)(B) (42 U.S.C. 603(a)(2)(B)) is amended to read as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Amount of grant</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>If, for a bonus year, none of the eligible States is Guam, the Virgin Islands, or American Samoa, then the amount of the grant shall be—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>$20,000,000 if there are 5 eligible States; or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>$25,000,000 if there are fewer than 5 eligible States.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Amount if certain territories are eligible</inline>.—</heading><chapeau>If, for a bonus year, Guam, the Virgin Islands, or American Samoa is an eligible State, then the amount of the grant shall be—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>in the case of such a territory, 25 percent of the mandatory ceiling amount (as defined in section 1108(c)(4)) with respect to the territory; and<page identifier="/us/stat/111/607">111 STAT. 607</page></content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <chapeau>in the case of a State that is not such a territory—</chapeau> <item class="indent5 fontsize10"><num value="aa">“(aa)</num> <content>if there are 5 eligible States other than such territories, $20,000,000, minus ⅕ of the total amount of the grants payable under this paragraph to such territories for the bonus year; or</content></item> <item class="indent5 fontsize10"><num value="bb">“(bb)</num> <content>if there are fewer than 5 such eligible States, $25,000,000, or such lesser amount as may be necessary to ensure that the total amount of grants payable under this paragraph for the bonus year does not exceed $100,000,000.”.</content></item> </subclause> </clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Certain territories to be ignored in ranking other states</inline>.—</heading><content>Section 403(a)(2)(C)(i)(I)(aa) (42 U.S.C. 603(a)(2)(C)(i)(I)(aa)) is amended by adding at the end the following: “<quotedText>In the case of a State that is not a territory specified in subparagraph (B), the comparative magnitude of the decrease for the State shall be determined without regard to the magnitude of the corresponding decrease for any such territory.</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Computation of Bonus Based on Ratios of Out-of-Wedlock Births to All Births Instead of Numbers of Out-of-Wedlock Births</inline>.—</heading><chapeau>Section 403(a)(2) (42 U.S.C. 603(a)(2)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in the paragraph heading, by inserting “<quotedText><inline class="smallCaps">ratio</inline></quotedText>” before the period;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subparagraph (A), by striking all that follows “bonus year” and inserting a period; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <chapeau>in subparagraph (C)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <chapeau>in clause (i)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <chapeau>in subclause (I)(aa)—</chapeau> <subclause class="indent4 fontsize10"><num value="I">(I)</num> <content>by striking “<quotedText>number of out-of-wedlock births that occurred in the State during</quotedText>” and inserting “<quotedText>illegitimacy ratio of the State for</quotedText>”; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">(II)</num> <content>by striking “<quotedText>number of such births that occurred during</quotedText>” and inserting “<quotedText>illegitimacy ratio of the State for</quotedText>”, and</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <chapeau>in subclause (II)(aa)—</chapeau> <subclause class="indent4 fontsize10"><num value="I">(I)</num> <content>by striking “<quotedText>number of out-of-wedlock births that occurred in</quotedText>” each place such term appears and inserting “<quotedText>illegitimacy ratio of</quotedText>”; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">(II)</num> <content>by striking “<quotedText>calculate the number of out-of-wedlock births</quotedText>” and inserting “<quotedText>calculate the illegitimacy ratio</quotedText>”; and</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by adding at the end the following: <quotedContent> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Illegitimacy ratio</inline>.—</heading><chapeau>The term ‘illegitimacy ratio’ means, with respect to a State and a period—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the number of out-of-wedlock births to mothers residing in the State that occurred during the period; divided by</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the number of births to mothers residing in the State that occurred during the period.”.</content></subclause> </clause> </quotedContent> </content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Use of Calendar Year Data Instead of Fiscal Year Data in Calculating Bonus for Decrease In Illegitimacy Ratio</inline>.—</heading><chapeau>Section 403(a)(2)(C) (42 U.S.C. 603(a)(2)(C)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in clause (i)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <chapeau>in subclause (I)(bb)—<page identifier="/us/stat/111/608">111 STAT. 608</page></chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by striking “<quotedText>the fiscal year</quotedText>” and inserting “<quotedText>the calendar year for which the most recent data are available</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking “<quotedText>fiscal year 1995</quotedText>” and inserting “<quotedText>calendar year 1995</quotedText>”;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in subclause (II), by striking “<quotedText>fiscal</quotedText>” each place such term appears and inserting “<quotedText>calendar</quotedText>”; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in clause (ii), by striking “<quotedText>fiscal years</quotedText>” and inserting “<quotedText>calendar years</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Correction of Heading</inline>.—</heading><content>Section 403(a)(3)(C)(ii) (42 U.S.C. 603(a)(3)(C)(ii)) is amended in the heading by striking “<quotedText>1997</quotedText>” and inserting “<quotedText>1998</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Clarification of Contingency Fund Provision</inline>.—</heading><chapeau>Section 403(b) (42 U.S.C. 603(b)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in paragraph (6), by striking “<quotedText>(5)</quotedText>” and inserting “<quotedText>(4)</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking paragraph (4) and redesignating paragraphs (5) and (6) as paragraphs (4) and (5), respectively; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by inserting after paragraph (5) the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Annual reconciliation</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Notwithstanding paragraph (3), if the Secretary makes a payment to a State under this subsection in a fiscal year, then the State shall remit to the Secretary, within 1 year after the end of the first subsequent period of 3 consecutive months for which the State is not a needy State, an amount equal to the amount (if any) by which—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the total amount paid to the State under paragraph (3) of this subsection in the fiscal year; exceeds</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>the product of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the Federal medical assistance percentage for the State (as defined in section 1905(b), as such section was in effect on September 30, 1995);</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the State’s reimbursable expenditures for the fiscal year; and</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>½ times the number of months during the fiscal year for which the Secretary made a payment to the State under such paragraph (3).</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>As used in subparagraph (A):</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Reimbursable expenditures</inline>.—</heading><chapeau>The term ‘reimbursable expenditures’ means, with respect to a State and a fiscal year, the amount (if any) by which—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>countable State expenditures for the fiscal year; exceeds</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>historic State expenditures (as defined in section 409(a)(7)(B)(iii)), excluding any amount expended by the State for child care under subsection (g) or (i) of section 402 (as in effect during fiscal year 1994) for fiscal year 1994.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Countable state expenditures</inline>.—</heading><chapeau>The term ‘countable expenditures’ means, with respect to a State and a fiscal year—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the qualified State expenditures (as defined in section 409(a)(7)(B)(i) (other than the expenditures described in subclause (I)(bb) of such section)) under the State program funded under this part for the fiscal year; plus<page identifier="/us/stat/111/609">111 STAT. 609</page></content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>any amount paid to the State under paragraph (3) during the fiscal year that is expended by the State under the State program funded under this part.”.</content></subclause> </clause> </subparagraph> </paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Administration of Contingency Fund Transferred to the Secretary of HHS</inline>.—</heading><content>Section 403(b)(7) (42 U.S.C. 603(b)(7)) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="7">“(7)</num> <heading><inline class="smallCaps">State defined</inline>.—</heading><content>As used in this subsection, the term ‘State’ means each of the 50 States and the District of Columbia.”.</content> </subsection> </quotedContent> </content></subsection> </section> <section> <num value="5503">SEC. 5503.</num> <heading>USE OF GRANTS.</heading> <content>Section 404(a)(2) (42 U.S.C. 604(a)(2)) is amended by inserting “<quotedText>, or (at the option of the State) August 21, 1996</quotedText>” before the period.</content> </section> <section> <num value="5504">SEC. 5504.</num> <heading>MANDATORY WORK REQUIREMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Family With a Disabled Parent Not Treated as a 2-Parent Family</inline>.—</heading><content>Section 407(b)(2) (42 U.S.C. 607(b)(2)) is amended by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Family with a disabled parent not treated as a 2-parent family</inline>.—</heading><content>A family that includes a disabled parent shall not be considered a 2-parent family for purposes of subsections (a) and (b) of this section.”.</content></subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Correction of Heading</inline>.—</heading><content>Section 407(b)(3) (42 U.S.C. 607(b)(3)) is amended in the heading by inserting “<quotedText><inline class="smallCaps">and not resulting from changes in state eligibility criteria</inline> and not resulting from changes in state eligibility criteria</quotedText>” before the period.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">State Option to Include Individuals Receiving Assistance Under a Tribal Work Program in Participation Rate Calculation</inline>.—</heading><chapeau>Section 407(b)(4) (42 U.S.C. 607(b)(4)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in the heading, by inserting “<quotedText><inline class="smallCaps">or tribal work program</inline></quotedText>” before the period; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting “<quotedText>or under a tribal work program to which funds are provided under this part</quotedText>” before the period.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Sharing of 35-Hour Work Requirement Between Parents in 2-Parent Families</inline>.—</heading><chapeau>Section 407(c)(1)(B) (42 U.S.C. 607(C)(1)(B)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in clause (i)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>is</quotedText>” and inserting “<quotedText>and the other parent in the family are</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by inserting “<quotedText>a total of</quotedText>” before “at least”; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>in clause (ii)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>individual’s spouse is</quotedText>” and inserting “<quotedText>individual and the other parent in the family are</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by inserting “<quotedText>for a total of at least 55 hours per week</quotedText>” before “during the month”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by striking “<quotedText>20</quotedText>” and inserting “<quotedText>50</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>by striking “<quotedText>or (7)</quotedText>” and inserting “<quotedText>(6), (7), (8), or (12)</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Clarification of Effort Required in Work Acttvities</inline>.—</heading><content>Section 407(C)(1)(B) (42 U.S.C. 607(C)(1)(B)) is amended by striking “<quotedText>making progress</quotedText>” each place such term appears and inserting “<quotedText>participating</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Additional Condition Under Which 12 Weeks of Job Search May Count as Work</inline>.—</heading><content>Section 407(c)(2)(A)(i) (42 U.S.C. 607(c)(2)(A)(i)) is amended by inserting “<quotedText>or the State is a needy State (within the meaning of section 403(b)(6))</quotedText>” after “United States”.<page identifier="/us/stat/111/610">111 STAT. 610</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g)</num> <heading><inline class="smallCaps">Caretaker Relative of Child Under Age 6 Deemed to be Meeting Work Requirements if Engaged in Work for 20 Hours Per Week</inline>.—</heading><chapeau>Section 407(c)(2)(B) (42 U.S.C. 607(c)(2)(B)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in the heading, by inserting “<quotedText><inline class="smallCaps">or relative</inline></quotedText>” after “<inline class="smallCaps">parent</inline>” each place such term appears; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<quotedText>in a 1-parent family who is the parent</quotedText>” and inserting “<quotedText>who is the only parent or caretaker relative in the family</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h)</num> <heading><inline class="smallCaps">Extension to Married Teens of Rule That Receipt of Sufficient Education is Enough to Meet Work Participation Requirements</inline>.—</heading><chapeau>Section 407(c)(2)(C) (42 U.S.C. 607(c)(2)(C)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in the heading, by striking “<quotedText><inline class="smallCaps">Teen head of household</inline></quotedText>” and inserting “<quotedText><inline class="smallCaps">Single teen head of household or married teen</inline></quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<quotedText>a single</quotedText>” and inserting “<quotedText>married or a</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by striking “<quotedText>, subject to subparagraph (D) of this paragraph</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="i">(i)</num> <heading><inline class="smallCaps">Clarification of Number of Hours of Participation in Education Directly Related to Employment That Are Required in Order for Single Teen Head of Household or Married Teen to Be Deemed to be Engaged in Work</inline>.—</heading><content>Section 407(c)(2)(C)(ii) (42 U.S.C. 607(c)(2)(C)(ii)) is amended by striking “<quotedText>at least</quotedText>” and all that follows through “subsection” and inserting “<quotedText>an average of at least 20 hours per week during the month</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="j">(j)</num> <heading><inline class="smallCaps">Clarification of Refusal to Work for Purposes of Work Penalties for Individuals</inline>.—</heading><content>Section 407(e)(2) (42 U.S.C. 607(e)(2)) is amended by striking “<quotedText>work</quotedText>” and inserting “<quotedText>engage in work required in accordance with this section</quotedText>”.</content> </subsection> </section> <section> <num value="5505">SEC. 5505.</num> <heading>PROHIBITIONS; REQUIREMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Elimination of Redundant Language; Clarification of Home Residence Requirement</inline>.—</heading><content>Section 408(a)(1) (42 U.S.C. 608(a)(1)) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">No assistance for families without a minor child</inline>.—</heading><content>A State to which a grant is made under section 403 shall not use any part of the grant to provide assistance to a family, unless the family includes a minor child who resides with the family (consistent with paragraph (10)) or a pregnant individual.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Clarification of Terminology</inline>.—</heading><chapeau>Section 408(a)(3) (42 U.S.C. 608(a)(3)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>leaves</quotedText>” the 1st, 3rd, and 4th places such term appears and inserting “<quotedText>ceases to receive assistance under</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<quotedText>the date the family leaves the program</quotedText>” the 2nd place such term appears and inserting “<quotedText>such date</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Elimination of Space</inline>.—</heading><content>Section 408(a)(5)(A)(ii) (42 U.S.C. 608(a)(5)(A)(ii)) is amended by striking “<quotedText><inline class="smallCaps">described</inline>.—For</quotedText>” and inserting “<quotedText><inline class="smallCaps">described</inline>.—For</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Corrections to 5-Year Limit on Assistance</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Clarification of limitation on hardship exemption</inline>.—</heading><chapeau>Section 408(a)(7)(C)(ii) (42 U.S.C. 608(a)(7)(C)(ii)) is amended—<page identifier="/us/stat/111/611">111 STAT. 611</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>The number</quotedText>” and inserting “<quotedText>The average monthly number</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by inserting “<quotedText>during the fiscal year or the immediately preceding fiscal year (but not both), as the State may elect</quotedText>” before the period.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Residence exception made more uniform and easier to administer</inline>.—</heading><content>Section 408(a)(7)(D) (42 U.S.C. 608(a)(7)(D)) is amended to read as follows: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Disregard of Months of Assistance Received by Adult While Living in Indian Country or an Alaskan Native Village With 50 Percent Unemployment</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In determining the number of months for which an adult has received assistance under a State or tribal program funded under this part, the State or tribe shall disregard any month during which the adult lived in Indian country or an Alaskan Native village if the most reliable data available with respect to the month (or a period including the month) indicate that at least 50 percent of the adults living in Indian country or in the village were not employed.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Indian country defined</inline>.—</heading><content>As used in clause (i), the term ‘Indian country’ has the meaning given such term in section 1151 of title 18, United States Code”.</content></clause> </subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Reinstatement of Deeming and Other Rules Applicable to Aliens Who Entered the United States Under Affidavits of Support Formerly Used</inline>.—</heading><content>Section 408 (42 U.S.C. 608), as amended by section 5001(h)(1) of this Act, is amended by striking subsection (e) and inserting the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Special Rules Relating to Treatment of Certain Aliens</inline>.—</heading><content>For special rules relating to the treatment of certain aliens, see title IV of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Special Rules Relating to the Treatment of Non-213A Aliens</inline>.—</heading><chapeau>The following rules shall apply if a State elects<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> to take the income or resources of any sponsor of a non-213A alien into account in determining whether the alien is eligible for assistance under the State program funded under this part, or in determining the amount or types of such assistance to be provided to the alien:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Deeming of sponsor’s income and resources</inline>.—</heading><chapeau>For a period of 3 years after a non-213A alien enters the United States:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Income deeming rule</inline>.—</heading><chapeau>The income of any sponsor of the alien and of any spouse of the sponsor is deemed to be income of the alien, to the extent that the total amount of the income exceeds the sum of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <chapeau>the lesser of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>20 percent of the total of any amounts received by the sponsor or any such spouse in the month as wages or salary or as net earnings from self-employment, plus the full amount of any costs incurred by the sponsor and any such spouse in producing self-employment income in such month; or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>$175;<page identifier="/us/stat/111/612">111 STAT. 612</page></content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the cash needs standard established by the State for purposes of determining eligibility for assistance under the State program funded under this part for a family of the same size and composition as the sponsor and any other individuals living in the same household as the sponsor who are claimed by the sponsor as dependents for purposes of determining the sponsor’s Federal personal income tax liability but whose needs are not taken into account in determining whether the sponsor’s family has met the cash needs standard;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>any amounts paid by the sponsor or any such spouse to individuals not living in the household who are claimed by the sponsor as dependents for purposes of determining the sponsor’s Federal personal income tax liability; and</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>any payments of alimony or child support with respect to individuals not living in the household.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Resource deeming rule</inline>.—</heading><content>The resources of a sponsor of the alien and of any spouse of the sponsor are deemed to be resources of the alien to the extent that the aggregate value of the resources exceeds $1,500.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Sponsors of multiple non-213a aliens</inline>.—</heading><content>If a person is a sponsor of 2 or more non-213A aliens who are living in the same home, the income and resources of the sponsor and any spouse of the sponsor that would be deemed income and resources of any such alien under subparagraph (A) shall be divided into a number of equal shares equal to the number of such aliens, and the State shall deem the income and resources of each such alien to include 1 such share.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Ineligibility of non-213a aliens sponsored by agencies; exception</inline>.—</heading><content>A non-213A alien whose sponsor is or was a public or private agency shall be ineligible for assistance under a State program funded under this part, during a period of 3 years after the alien enters the United States, unless the State agency administering the program determines that the sponsor either no longer exists or has become unable to meet the alien’s needs.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Information provisions</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Duties of non-213a aliens</inline>.—</heading><chapeau>A non-213A alien, as a condition of eligibility for assistance under a State program funded under this part during the period of 3 years after the alien enters the United States, shall be required to provide to the State agency administering the program—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>such information and documentation with respect to the alien’s sponsor as may be necessary in order for the State agency to make any determination required under this subsection, and to obtain any cooperation from the sponsor necessary for any such determination; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>such information and documentation as the State agency may request and which the alien or the alien’s sponsor provided in support of the alien’s immigration application.<page identifier="/us/stat/111/613">111 STAT. 613</page></content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Duties of federal agencies</inline>.—</heading><content>The Secretary<sidenote><p class="indent0 firstIndent0 fontsize8">Contracts.</p></sidenote> shall enter into agreements with the Secretary of State and the Attorney General under which any information available to them and required in order to make any determination under this subsection will be provided by them to the Secretary (who may, in turn, make the information available, upon request, to a concerned State agency).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Non-213a alien defined</inline>.—</heading><content>An alien is a non-213A alien for purposes of this subsection if the affidavit of support or similar agreement with respect to the alien that was executed by the sponsor of the alien’s entry into the United States was executed other than pursuant to section 213A of the Immigration and Nationality Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Inapplicability to alien minor sponsored by a parent</inline>.—</heading><content>This subsection shall not apply to an alien who is a minor child if the sponsor of the alien or any spouse of the sponsor is a parent of the alien.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Inapplicability to certain categories of aliens</inline>.—</heading><chapeau>This subsection shall not apply to an alien who is—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>admitted to the United States as a refugee under section 207 of the Immigration and Nationality Act;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>paroled into the United States under section 212(d)(5) of such Act for a period of at least 1 year; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>granted political asylum by the Attorney General under section 208 of such Act.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> </section> <section> <num value="5506">SEC. 5506.</num> <heading>PENALTIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">States Given More Time to File Quarterly Reports</inline>.—</heading><content>Section 409(a)(2)(A) (42 U.S.C. 609(a)(2)(A)) is amended by striking “<quotedText>1 month</quotedText>” and inserting “<quotedText>45 days</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Treatment of Support Payments Passed Through to Families as Qualified State Expenditures</inline>.—</heading><content>Section 409(a)(7)(B)(i)(I)(aa) (42 U.S.C. 609(a)(7)(B)(i)(I)(aa)) is amended by inserting “<quotedText>, including any amount collected by the State as support pursuant to a plan approved under part D, on behalf of a family receiving assistance under the State program funded under this part, that is distributed to the family under section 457(a)(1)(B) and disregarded in determining the eligibility of the family for, and the amount of, such assistance</quotedText>” before the period.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Disregard of Expenditures Made to Replace Penalty Grant Reductions</inline>.—</heading><content>Section 409(a)(7)(B)(i) (42 U.S.C. 609(a)(7)(B)(i)) is amended by redesignating subclause (III) as subclause (IV) and by inserting after subclause (II) the following: <quotedContent> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <heading><inline class="smallCaps">Exclusion of amounts expended to replace penalty grant reductions</inline>.—</heading><content>Such term does not include any amount expended in order to comply with paragraph (12).”.</content></subclause> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Treatment of Families of Certain Aliens as Eligible Families</inline>.—</heading><chapeau>Section 409(a)(7)(B)(i)(IV) (42 U.S.C. 609(a)(7)(B)(i)(IV)), as so redesignated by subsection (c) of this section, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>and families</quotedText>” and inserting “<quotedText>families</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<quotedText>Act or section 402</quotedText>” and inserting “<quotedText>Act, and families of aliens lawfully present in the United States that would be eligible for such assistance but for the application of title IV</quotedText>”.<page identifier="/us/stat/111/614">111 STAT. 614</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Elimination of Meaningless Language</inline>.—</heading><content>Section 409(a)(7)(B)(ii) (42 U.S.C. 609(a)(7)(B)(ii)) is amended by striking “<quotedText>reduced (if appropriate) in accordance with subparagraph (C)(ii)</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Clarification of Source of Data to be Used in Determining Historic State Expenditures</inline>.—</heading><content>Section 409(a)(7)(B) (42 U.S.C. 609(a)(7)(B)) is amended by adding at the end the following: <quotedContent> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <heading><inline class="smallCaps">Source of data</inline>.—</heading><content>In determining expenditures by a State for fiscal years 1994 and 1995, the Secretary shall use information which was reported by the State on ACF Form 231 or (in the case of expenditures under part F) ACF Form 331, available as of the dates specified in clauses (ii) and (iii) of section 403(a)(1)(D).”.</content></clause> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="g">(g)</num> <heading><inline class="smallCaps">Conforming Title IV–A Penalties to Title IV–D Performance-Based Standards</inline>.—</heading><content>Section 409(a)(8) (42 U.S.C. 609(a)(8)) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <heading><inline class="smallCaps">Noncompliance of state child support enforcement program with requirements of part d</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>If the Secretary finds, with respect to a State’s program under part D, in a fiscal year beginning on or after October 1, 1997—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num><subclause class="inline"><num value="I">(I)</num> <content>on the basis of data submitted by a State pursuant to section 454(15)(B), or on the basis of the results of a review conducted under section 452(a)(4), that the State program failed to achieve the paternity establishment percentages (as defined in section 452(g)(2)), or to meet other performance measures that may be established by the Secretary;</content></subclause> <subclause class="indent0 fontsize10"><num value="II">“(II)</num> <content>on the basis of the results of an audit or audits conducted under section 452(a)(4)(C)(i) that the State data submitted pursuant to section 454(15)(B) is incomplete or unreliable; or</content></subclause> <subclause class="indent0 fontsize10"><num value="III">“(III)</num> <content>on the basis of the results of an audit or audits conducted under section 452(a)(4)(C) that a State failed to substantially comply with 1 or more of the requirements of part D; and</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>that, with respect to the succeeding fiscal year—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the State failed to take sufficient corrective action to achieve the appropriate performance levels or compliance as described in subparagraph (A)(i); or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the data submitted by the State pursuant to section 454(15)(B) is incomplete or unreliable; the amounts otherwise payable to the State under this part for quarters following the end of such succeeding fiscal year, prior to quarters following the end of the first quarter throughout which the State program has achieved the paternity establishment percentages or other performance measures as described in subparagraph (A)(i)(I), or is in substantial compliance with 1 or more of the requirements of part D as described in subparagraph (A)(i)(III), as appropriate, shall be reduced by the percentage specified in subparagraph (B).</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Amount of reductions</inline>.—</heading><chapeau>The reductions required under subparagraph (A) shall be—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>not less than 1 nor more than 2 percent;<page identifier="/us/stat/111/615">111 STAT. 615</page></content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>not less than 2 nor more than 3 percent, if the finding is the 2nd consecutive finding made pursuant to subparagraph (A); or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>not less than 3 nor more than 5 percent, if the finding is the 3rd or a subsequent consecutive such finding.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Disregard of noncompliance which is of a technical nature</inline>.—</heading><chapeau>For purposes of this section and section 452(a)(4), a State determined as a result of an audit—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>to have failed to have substantially complied with 1 or more of the requirements of part D shall be determined to have achieved substantial compliance only if the Secretary determines that the extent of the noncompliance is of a technical nature which does not adversely affect the performance of the State’s program under part D; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>to have submitted incomplete or unreliable data pursuant to section 454(15)(B) shall be determined to have submitted adequate data only if the Secretary determines that the extent of the incompleteness or unreliability of the data is of a technical nature which does not adversely affect the determination of the level of the State’s paternity establishment percentages (as defined under section 452(g)(2)) or other performance measures that may be established by the Secretary.”.</content></clause> </subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="h">(h)</num> <heading><inline class="smallCaps">Correction of Reference to 5-Year Limit on Assistance</inline>.—</heading><content>Section 409(a)(9) (42 U.S.C. 609(a)(9)) is amended by striking “<quotedText>408(a)(1)(B)</quotedText>” and inserting “<quotedText>408(a)(7)</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="i">(i)</num> <heading><inline class="smallCaps">Correction of Errors in Penalty for Failure to Meet Maintenance of Effort Requirement Applicable to the Contingency Fund</inline>.—</heading><chapeau>Section 409(a)(10) (42 U.S.C. 609(a)(10)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>the expenditures under the State program funded under this part for the fiscal year (excluding any amounts made available by the Federal Government)</quotedText>” and inserting “<quotedText>the qualified State expenditures (as defined in paragraph (7)(B)(i) (other than the expenditures described in subclause (I)(bb) of that paragraph)) under the State program funded under this part for the fiscal year</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting “<quotedText>excluding any amount expended by the State for child care under subsection (g) or (i) of section 402 (as in effect during fiscal year 1994) for fiscal year 1994,</quotedText>” after “(as defined in paragraph (7)(B)(iii) of this subsection),”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by inserting “<quotedText>that the State has not remitted under section 403(b)(6)</quotedText>” before the period.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="j">(j)</num> <heading><inline class="smallCaps">Penalty for State Failure to Expend Additional State Funds to Replace Grant Reductions</inline>.—</heading><chapeau>Section 409(a)(12) (42 U.S.C. 609(a)(12)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in the heading—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText><inline class="smallCaps">Failure</inline></quotedText>” and inserting “<quotedText><inline class="smallCaps">Requirement</inline></quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking “<quotedText><inline class="smallCaps">reductions</inline></quotedText>” and inserting “<quotedText><inline class="smallCaps">Reductions; penalty for failure to do so</inline></quotedText>”; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following: “If the State fails during such succeeding fiscal year to make the expenditure <page identifier="/us/stat/111/616">111 STAT. 616</page>required by the preceding sentence from its own funds, the Secretary may reduce the grant payable to the State under section 403(a)(1) for the fiscal year that follows such succeeding fiscal year by an amount equal to the sum of— <quotedContent> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>not more than 2 percent of the State family assistance grant; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the amount of the expenditure required by the preceding sentence.”.</content></subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="k">(k)</num> <heading><inline class="smallCaps">Elimination of Certain Reasonable Cause Exceptions</inline>.—</heading><content>Section 409(b)(2) (42 U.S.C. 609(b)(2)) is amended by striking “<quotedText>(7) or (8)</quotedText>” and inserting “<quotedText>(6), (7), (8), (10), or (12)</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="l">(l)</num> <heading><inline class="smallCaps">Clarification of What It Means to Correct a Violation</inline>.—</heading><chapeau>Section 409(c) (42 U.S.C. 609(c)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in each of subparagraphs (A) and (B) of paragraph (1), by inserting “<quotedText>or discontinue, as appropriate,</quotedText>” after “correct”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>in paragraph (2)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in the heading, by inserting “<quotedText><inline class="smallCaps">or discontinuing</inline></quotedText>” after “<inline class="smallCaps">correcting</inline>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by inserting “<quotedText>or discontinues, as appropriate</quotedText>” after “corrects”; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <chapeau>in paragraph (3)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in the heading, by inserting “<quotedText><inline class="smallCaps">or discontinue</inline></quotedText>” after “<inline class="smallCaps">correct</inline>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by inserting “<quotedText>or discontinue, as appropriate,</quotedText>” before “the violation”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="m">(m)</num> <heading><inline class="smallCaps">Certain Penalties Not Avoidable Through Corrective Compliance Plans</inline>.—</heading><content>Section 409(c)(4) (42 U.S.C. 609(c)(4)) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Inapplicability to certain penalties</inline>.—</heading><content>This subsection shall not apply to the imposition of a penalty against a State under paragraph (6), (7), (8), (10), or (12) of subsection (a)”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="n">(n)</num> <heading><inline class="smallCaps">Failure to Satisfy Minimum Participation Rates</inline>.—</heading><chapeau>Section 409(a)(3) (42 U.S.C. 609(a)(3)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subparagraph (A), by striking “<quotedText>not more than</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subparagraph (C), by inserting before the period the following: “or if the noncompliance is due to extraordinary circumstances such as a natural disaster or regional recession. <sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote>The Secretary shall provide a written report to Congress to justify any waiver or penalty reduction due to such extraordinary circumstances”.</content></paragraph> </subsection> </section> <section> <num value="5507">SEC. 5507.</num> <heading>DATA COLLECTION AND REPORTING.</heading> <chapeau>Section 411(a) (42 U.S.C. 611(a)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in paragraph (1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <chapeau>in subparagraph (A)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by striking clause (ii) and inserting the following: <quotedContent> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>Whether a child receiving such assistance or an adult in the family is receiving—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>Federal disability insurance benefits;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>benefits based on Federal disability status;</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>aid under a State plan approved under title XIV (as in effect without regard to the amendment made by section 301 of the Social Security Amendments of 1972));<page identifier="/us/stat/111/617">111 STAT. 617</page></content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>aid or assistance under a State plan approved under title XVI (as in effect without regard to such amendment) by reason of being permanently and totally disabled; or</content></subclause> <subclause class="indent4 fontsize10"><num value="V">“(V)</num> <content>supplemental security income benefits under title XVI (as in effect pursuant to such amendment) by reason of disability.”;</content></subclause> </clause> </quotedContent> </content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>in clause (iv), by striking “<quotedText>youngest child in</quotedText>” and inserting “<quotedText>head of</quotedText>”;</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>in each of clauses (vii) and (viii), by striking “<quotedText>status</quotedText>” and inserting “<quotedText>level</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="iv">(iv)</num> <content>by adding at the end the following: <quotedContent> <clause class="indent3 fontsize10"><num value="xvii">“(xvii)</num> <content>With respect to each individual in the family who has not attained 20 years of age, whether the individual is a parent of a child in the family.”; and</content></clause> </quotedContent> </content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>in subparagraph (B)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>in the heading, by striking “<quotedText><inline class="smallCaps">estimates</inline></quotedText>” and inserting “<quotedText><inline class="smallCaps">samples</inline></quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>in clause (i), by striking “<quotedText>an estimate which is obtained</quotedText>” and inserting “<quotedText>disaggregated case record information on a sample of families selected</quotedText>”; and</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by redesignating paragraph (6) as paragraph (7) and inserting after paragraph (5) the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Report on families receiving assistance</inline>.—</heading><chapeau>The report required by paragraph (1) for a fiscal quarter shall include for each month in the quarter—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the number of families and individuals receiving assistance under the State program funded under this part (including the number of 2-parent and 1-parent families); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the total dollar value of such assistance received by all families.”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> </section> <section> <num value="5508">SEC. 5508.</num> <heading>DIRECT FUNDING AND ADMINISTRATION BY INDIAN TRIBES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Prorating of Tribal Family Assistance Grants</inline>.—</heading><content>Section 412(a)(1)(A) (42 U.S.C. 612(a)(1)(A)) is amended by inserting “<quotedText>which shall he reduced for a fiscal year, on a pro rata basis for each quarter, in the case of a tribal family assistance plan approved during a fiscal year for which the plan is to be in effect,</quotedText>” before “and shall”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Tribal Option to Operate Work Activities Program</inline>.—</heading><content>Section 412(a)(2)(A) (42 U.S.C. 612(a)(2)(A)) is amended by striking “<quotedText>The Secretary</quotedText>” and all that follows through “2002” and inserting “<quotedText>For each of fiscal years 1997, 1998, 1999, 2000, 2001, and 2002, the Secretary shall pay to each eligible Indian tribe that proposes to operate a program described in subparagraph (C)</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Discretion of Tribes to Select Population to be Served by Tribal Work Activities Program</inline>.—</heading><content>Section 412(a)(2)(C) (42 U.S.C. 612(a)(2)(C)) is amended by striking “<quotedText>members of the Indian tribe</quotedText>” and inserting “<quotedText>such population and such service area or areas as the tribe specifies</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Reduction of Appropriation for Tribal Work Activities Programs</inline>.—</heading><content>Section 412(a)(2)(D) (42 U.S.C. 612(a)(2)(D)) is amended by striking “<quotedText>$7,638,474</quotedText>” and inserting “<quotedText>$7,633,287</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Availability of Corrective Compliance Plans to Indian Tribes</inline>.—</heading><content>Section 412(f)(1) (42 U.S.C. 612(f)(1)) is amended by striking “<quotedText>and (b)</quotedText>” and inserting “<quotedText>(b), and (c)</quotedText>”.<page identifier="/us/stat/111/618">111 STAT. 618</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Eligibility of Tribes for Federal Loans for Welfare Programs</inline>.—</heading><content>Section 412 (42 U.S.C. 612) is amended by redesignating subsections (f), (g), and (h) as subsections (g), (h), and (i), respectively, and by inserting after subsection (e) the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> <heading><inline class="smallCaps">Eligibility for Federal Loans</inline>.—</heading><content>Section 406 shall apply to an Indian tribe with an approved tribal assistance plan in the same manner as such section applies to a State, except that section 406(c) shall be applied by substituting ‘section 412(a)’ for ‘section 403(a)’.”.</content> </subsection> </quotedContent> </content></subsection> </section> <section> <num value="5509">SEC. 5509.</num> <heading>RESEARCH, EVALUATIONS, AND NATIONAL STUDIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Research</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Methods</inline>.—</heading><content>Section 413(a) (42 U.S.C. 613(a)) is amended by inserting “<quotedText>, directly or through grants, contracts, or interagency agreements,</quotedText>” before “shall conduct”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Correction of Cross Reference</inline>.—</heading><content>Section 413(a) (42 U.S.C. 613(a)) is amended by striking “<quotedText>409</quotedText>” and inserting “<quotedText>407</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Correction of Erroneously Indented Paragraph</inline>.—</heading><content>Section 413(e)(1) (42 U.S.C. 613(e)(1)) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The Secretary shall annually rank States to which grants are made under section 403 based on the following ranking factors:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Absolute out-of-wedlock ratios</inline>.—</heading><chapeau>The ratio represented by—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the total number of out-of-wedlock births in families receiving assistance under the State program under this part in the State for the most recent year for which information is available; over</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the total number of births in families receiving assistance under the State program under this part in the State for the year.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Net changes in the out-of-wedlock ratio</inline>.—</heading><content>The difference between the ratio described in subparagraph (A) with respect to a State for the most recent year for which such information is available and the ratio with respect to the State for the immediately preceding year.”.</content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Funding of Prior Authorized Demonstrations</inline>.—</heading><content>Section 413(h)(1)(D) (42 U.S.C. 613(h)(1)(D)) is amended by striking “<quotedText>September 30, 1995</quotedText>” and inserting “<quotedText>August 22, 1996</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Child Poverty Reports</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Delayed due date for initial report</inline>.—</heading><content>Section 413(i)(I) (42 U.S.C. 613(i)(I)) is amended by striking “<quotedText>90 days after the date of the enactment of this part</quotedText>” and inserting “<quotedText>May 31, 1998</quotedText>”</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Modification of factors to be used in establishing methodology for use in determining child poverty rates</inline>.—</heading><content>Section 413(i)(5) (42 U.S.C. 613(i)(5)) is amended by striking “<quotedText>the county-by-county</quotedText>” and inserting “<quotedText>, to the extent available, county-by-county</quotedText>”.</content></paragraph> </subsection> </section> <section> <num value="5510">SEC. 5510.</num> <heading>REPORT ON DATA PROCESSING.</heading> <content>Section 106(a)(1) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104–193; 110 Stat. 2164) is amended by striking “<quotedText>(whether in effect before or after October 1, 1995)</quotedText>”.<page identifier="/us/stat/111/619">111 STAT. 619</page></content> </section> <section> <num value="5511">SEC. 5511.</num> <heading>STUDY ON ALTERNATIVE OUTCOMES MEASURES.</heading> <content>Section 107(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104–193; 110 Stat. 2164) is amended by striking “<quotedText>409(a)(7)(C)</quotedText>” and inserting<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s613">42 USC 613 note</ref>.</p></sidenote> “408(a)(7)(C)”.</content> </section> <section> <num value="5512">SEC. 5512.</num> <heading>LIMITATION ON PAYMENTS TO THE TERRITORIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Certain Payments to be Disregarded in Determining Limitation</inline>.—</heading><content>Section 1108(a) (42 U.S.C. 1308) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Limitation on Total Payments to Each Territory</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Notwithstanding any other provision of this Act (except for paragraph (2) of this subsection), the total amount certified by the Secretary of Health and Human Services under titles I, X, XIV, and XVI, under parts A and E of title IV, and under subsection (b) of this section, for payment to any territory for a fiscal year shall not exceed the ceiling amount for the territory for the fiscal year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Certain payments disregarded</inline>.—</heading><content>Paragraph (1) of this subsection shall be applied without regard to any payment made under section 403(a)(2), 403(a)(4), 406, or 413(f).”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Certain Child Care and Social Services Expenditures by Territories Treated as IV–A Expenditures for Purposes of Matching Grant</inline>.—</heading><content>Section 1108(b)(1)(A) (42 U.S.C. 1308(b)(1)(A)) is amended by inserting “<quotedText>, including any amount paid to the State under part A of title IV that is transferred in accordance with section 404(d) and expended under the program to which transferred</quotedText>” before the semicolon.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Elimination of Duplicative Maintenance of Effort Requirement</inline>.—</heading><content>Section 1108 (42 U.S.C. 1308) is amended by striking subsection (e).</content> </subsection> </section> <section> <num value="5513">SEC. 5513.</num> <heading>CONFORMING AMENDMENTS TO THE SOCIAL SECURITY ACT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Amendments to Part D of Title IV</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Corrections to determination of paternity establishment percentages</inline>.—</heading><chapeau>Section 452 (42 U.S.C. 652) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in subsection (d)(3)(A), by striking all that follows “for purposes of” and inserting “<quotedText>section 409(a)(8), to achieve the paternity establishment percentages (as defined under section 452(g)(2)) and other performance measures that may be established by the Secretary, and to submit data under section 454(15)(B) that is complete and reliable, and to substantially comply with the requirements of this part; and</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in subsection (g)(1), by striking “<quotedText>section 403(h)</quotedText>” and inserting “<quotedText>section 409(a)(8)</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Elimination of obsolete language</inline>.—</heading><content>Section 108(c)(8)(C) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104–193; 110 Stat. 2165) is amended by inserting “<quotedText>and all that follows<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s652">42 USC 652</ref>.</p></sidenote> through ‘the best interests of such child to do so’</quotedText>” before “and inserting”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Insertion of language inadvertently omitted</inline>.—</heading><content>Section 108(c)(13) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104–193; <page identifier="/us/stat/111/620">111 STAT. 620</page><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s656">42 USC 656</ref>.</p></sidenote>110 Stat. 2166) is amended by inserting “<quotedText>and inserting ‘pursuant to section 408(a)(3)’</quotedText>” before the period.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Elimination of obsolete cross reference</inline>.—</heading><content>Section 464(a)(1) (42 U.S.C. 664(a)(1)) is amended by striking “<quotedText>section 402(a)(26)</quotedText>” and inserting “<quotedText>section 408(a)(3)</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Amendments to Part E of Title IV</inline>.—</heading><chapeau>Each of the following is amended by striking “<quotedText>June 1, 1995</quotedText>” each place such term appears and inserting “<quotedText>July 16, 1996</quotedText>”:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Section 472(a) (42 U.S.C. 672(a)).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Section 472(h) (42 U.S.C. 672(h)).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Section 473(a)(2) (42 U.S.C. 673(a)(2)).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>Section 473(b) (42 U.S.C. 673(b)).</content></paragraph> </subsection> </section> <section> <num value="5514">SEC. 5514.</num> <heading>OTHER CONFORMING AMENDMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Elimination of Amendments Included Inadvertently</inline>.—</heading><chapeau>Section 110(1) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104–193; 110 Stat. 2173) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s51">26 USC 51, 6103, 6402</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3304">26 USC 3304, 6103, 6334, 7523</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6334">26 USC 6334</ref>.</p></sidenote> <content>by striking paragraphs (1), (4), (5), and (7);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by redesignating paragraphs (2), (3), (6), and (8) as paragraphs (1), (2), (3), and (4), respectively; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by adding “<quotedText>and</quotedText>” at the end of paragraph (3), as so redesignated.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Correction of Citation</inline>.—</heading><content>Section 109(f) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s612c">7 USC 612c note</ref>.</p></sidenote>(Public Law 104–193; 110 Stat. 2177) is amended by striking “<quotedText>93–186</quotedText>” and inserting “<quotedText>93–86</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s601">42 USC 601 <i>et seq</i></ref>.</p></sidenote> <heading><inline class="smallCaps">Correction of Internal Cross Reference</inline>.—</heading><content>Section 103(a)(1) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104–193; 110 Stat. 2112) is amended by striking “<quotedText>603(b)(2)</quotedText>” and inserting “<quotedText>603(b)</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Correction of References</inline>.—</heading><content>Section 416 (42 U.S.C. 616) is amended by striking “<quotedText>amendment made by section 2103 of the Personal Responsibility and Work Opportunity</quotedText>” and inserting “<quotedText>amendments made by section 103 of the Personal Responsibility and Work Opportunity Reconciliation</quotedText>”.</content> </subsection> </section> <section> <num value="5515">SEC. 5515.</num> <heading>MODIFICATIONS TO THE JOB OPPORTUNITIES FOR CERTAIN LOW-INCOME INDIVIDUALS PROGRAM.</heading> <content>Section 112(5) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104–193; 110 Stat. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9910d">42 USC 9910d</ref>.</p></sidenote>2177) is amended in each of subparagraphs (A) and (B) by inserting “<quotedText>under</quotedText>” after “funded”.</content> </section> <section> <num value="5516">SEC. 5516.</num> <heading>DENIAL OF ASSISTANCE AND BENEFITS FOR DRUG-RELATED CONVICTIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Extension of Certain Requirements Coordinated With Delayed Effective Date for Successor Provisions</inline>.—</heading><content>Section 115(d)(2) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104–193; 110 Stat. 2181) is amended by striking “<quotedText>convictions</quotedText>” and inserting “<quotedText>a conviction if the conviction is for conduct</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Immediate Effectiveness of Provisions Relating to Research, Evaluations, and National Studies</inline>.—</heading><content>Section 116(a) of the Personal Responsibility and Work Opportunity Reconciliation <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s601">42 USC 601 note</ref>.</p></sidenote>Act of 1996 (Public Law 104–193; 110 Stat. 2181) is amended by adding at the end the following:<page identifier="/us/stat/111/621">111 STAT. 621</page> <quotedContent> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Research, evaluations, and national studies</inline>.—</heading><content>Section 413 of the Social Security Act, as added by the amendment made by section 103(a) of this Act, shall take effect on the date of the enactment of this Act.”.</content></paragraph> </quotedContent> </content></subsection> </section> <section> <num value="5517">SEC. 5517.</num> <heading>TRANSITION RULE.</heading> <chapeau>Section 116 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104–193; 110 Stat. 2181) is amended—<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s601">42 USC 601 note</ref>.</p></sidenote></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subsection (a)(2), by inserting “<quotedText>(but subject to subsection (b)(1)(A)(ii))</quotedText>” after “this section”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subsection (b)(1)(A)(ii), by striking “<quotedText>June 30, 1997</quotedText>” and inserting “<quotedText>the later of June 30, 1997, or the day before the date described in subsection (a)(2)(B) of this section</quotedText>”.</content></paragraph> </section> <section> <num value="5518">SEC. 5518.</num> <heading>EFFECTIVE DATES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Amendments to Part A of Title IV of the Social Security Act</inline>.—</heading><content><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s602">42 USC 602 note</ref>.</p></sidenote>The amendments made by this chapter to a provision of part A of title IV of the Social Security Act shall take effect as if the amendments had been included in section 103(a) of the Personal Responsibility and Work Opportunity Reconcihation Act of 1996 at the time such section became law.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Amendments to Parts D and E of Title IV of the Social Security Act</inline>.—</heading><content><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s652">42 USC 652 note</ref>.</p></sidenote>The amendments made by section 5513 of this Act shall take effect as if the amendments had been included in section 108 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 at the time such section 108 became law.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Amendments to Other Amendatory Provisions</inline>.—</heading><content>The<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s51">26 USC 51 note</ref>.</p></sidenote> amendments made by section 5514(a) of this Act shall take effect as if the amendments had been included in section 110 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 at the time such section 110 became law.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Amendments to Freestanding Provisions of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996</inline>.—</heading><content><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s862a">21 USC 862a note</ref>.</p></sidenote>The amendments made by this chapter to a provision of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 that nave not become part of another statute shall take effect as if the amendments had been included in the provision at the time the provision became law.</content> </subsection> </section> </chapter> <chapter> <num value="2">CHAPTER 2—</num><heading>SUPPLEMENTAL SECURITY INCOME</heading> <section> <num value="5521">SEC. 5521.</num> <heading>CONFORMING AND TECHNICAL AMENDMENTS RELATING TO ELIGIBILITY RESTRICTIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Denial of SSI Benefits for Fugitive Felons and Probation and Parole Violators</inline>.—</heading><content>Section 1611(e)(6) (42 U.S.C. 1382(e)(6)) is amended by inserting “<quotedText>and section 1106(c) of this Act</quotedText>” after “of 1986”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Treatment of Prisoners</inline>.—</heading><content>Section 1611(e)(1)(I)(i)(II) (42 U.S.C. 1382(e)(1)(I)(i)(II)) is amended by striking “<quotedText>inmate of the institution</quotedText>” and all that follows through “this subparagraph” and inserting “<quotedText>individual who receives in the month preceding the first month throughout which such individual is an inmate of the jail, prison, penal institution, or correctional facility that furnishes information respecting such individual pursuant to subclause (I), or is confined in the institution (that so furnishes such information) as described in section 202(x)(1)(A)(ii), a benefit under this title <page identifier="/us/stat/111/622">111 STAT. 622</page>for such preceding month, and who is determined by the Commissioner to be ineligible for benefits under this title by reason of confinement based on the information provided by such institution</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Correction of Reference</inline>.—</heading><content>Section 1611(e)(1)(I)(i)(I) (42 U.S.C. 1382(e)(1)(I)(i)(I) is amended by striking “<quotedText>paragraph (1)</quotedText>” and inserting “<quotedText>this paragraph</quotedText>”.</content> </subsection> </section> <section> <num value="5522">SEC. 5522.</num> <heading>CONFORMING AND TECHNICAL AMENDMENTS RELATING TO BENEFITS FOR DISABLED CHILDREN.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Eligibility Redeterminations and Continuing Disability Reviews</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Disability eligibility redeterminations required for ssi recipients who attain 18 years of age</inline>.—</heading><content>Section 1614(a)(3)(H)(iii) (42 U.S.C. 1382c(a)(3)(H)(iii)) is amended by striking subclauses (I) and (II) and all that follows and inserting the following: <quotedContent> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>by applying the criteria used in determining initial eligibility for individuals who are age 18 or older; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>either during the 1-year period beginning on the individual’s 18th birthday or, in lieu of a continuing disability review, whenever the Commissioner determines that an individual’s case is subject to a redetermination under this clause. With respect to any redetermination under this clause, paragraph (4) shall not apply.”.</content></subclause> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Continuing disability review required for low birth weight babies</inline>.—</heading><chapeau>Section 1614(a)(3)(H)(iv) (42 U.S.C. 1382c(a)(3)(H)(iv)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in subclause (I), by striking “<quotedText>Not</quotedText>” and inserting “<quotedText>Except as provided in subclause (VI), not</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by adding at the end the following: <quotedContent> <subclause class="indent4 fontsize10"><num value="VI">“(VI)</num> <content>Subclause (I) shall not apply in the case of an individual described in that subclause who, at the time of the individual’s initial disability determination, the Commissioner determines has an impairment that is not expected to improve within 12 months after the birth of that individual, and who the Commissioner schedules for a continuing disability review at a date that is after the individual attains 1 year of age.”.</content></subclause> </quotedContent> </content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Additional Accountability Requirements</inline>.—</heading><chapeau>Section 1631(a)(2)(F) (42 U.S.C. 1383(a)(2)(F)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in clause (ii)(III)(bb), by striking “<quotedText>the total amount</quotedText>” and all that follows through “1613(c)” and inserting “<quotedText>in any case in which the individual knowingly misapplies benefits from such an account, the Commissioner shall reduce future benefits payable to such individual (or to such individual and his spouse) by an amount equal to the total amount of such benefits so misapplied</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking clause (iii) and inserting the following: <quotedContent> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>The representative payee may deposit into the account established under clause (i) any other funds representing past due benefits under this title to the eligible individual, provided that the amount of such past due benefits is equal to or exceeds the maximum monthly benefit payable under this title to an eligible individual (including State supplementary payments made by the Commissioner pursuant to an agreement under section 1616 or section 212(b) of Public Law 93–66).”.<page identifier="/us/stat/111/623">111 STAT. 623</page></content></clause> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Reduction in Cash Benefits Payable to Institutionalized Individuals Whose Medical Costs Are Covered by Private Insurance</inline>.—</heading><chapeau>Section 1611(e) (42 U.S.C. 1382(e)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in paragraph (1)(B)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in the matter preceding clause (i), by striking “<quotedText>hospital, extended care facility, nursing home, or intermediate care facility</quotedText>” and inserting “<quotedText>medical treatment facility</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>in clause (ii)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>in the matter preceding subclause (I), by striking “<quotedText>hospital, home or</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>in subclause (I), by striking “<quotedText>hospital, home, or</quotedText>”;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>in clause (iii), by striking “<quotedText>hospital, home, or</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>in the matter following clause (iii), by striking “<quotedText>hospital, extended care facility, nursing home, or intermediate care facility which is a ‘medical institution or nursing facility’ within the meaning of section 1917(c)</quotedText>” and inserting “<quotedText>medical treatment facility that provides services described in section 1917(c)(1)(C)</quotedText>”;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>in paragraph (1)(E)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in clause (i)(II), by striking “<quotedText>hospital, extended care facility, nursing home, or intermediate care facility</quotedText>” and inserting “<quotedText>medical treatment facility</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in clause (iii), by striking “<quotedText>hospital, extended care facility, nursing home, or intermediate care facility</quotedText>” and inserting “<quotedText>medical treatment facility</quotedText>”;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <chapeau>in paragraph (1)(G), in the matter preceding clause (i)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>or which is a hospital, extended care facility, nursing home, or intermediate care</quotedText>” and inserting “<quotedText>or is in a medical treatment</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by inserting “<quotedText>or, in the case of an individual who is a child under the age of 18, under any health insurance policy issued by a private provider of such insurance</quotedText>” after “title XIX”; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <chapeau>in paragraph (3)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>same hospital, home, or facility</quotedText>” and inserting “<quotedText>same medical treatment facility</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking “<quotedText>same such hospital, home, or facility</quotedText>” and inserting “<quotedText>same such facility</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Correction of U.S.C. Citation</inline>.—</heading><content>Section 211(c) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104–193; 110 Stat. 2189) is amended by striking<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1382c">42 USC 1382c</ref>.</p></sidenote> “1382(a)(4)” and inserting “<quotedText>1382c(a)(4)</quotedText>”.</content> </subsection> </section> <section> <num value="5523">SEC. 5523.</num> <heading>ADDITIONAL TECHNICAL AMENDMENTS TO TITLE XVI.</heading> <chapeau>Section 1615(d) (42 U.S.C. 1382d(d)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in the first sentence, by inserting a comma after “subsection (a)(1)”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in the last sentence, by striking “<quotedText>him</quotedText>” and inserting “<quotedText>the Commissioner</quotedText>”.</content></paragraph> </section> <section> <num value="5524">SEC. 5524.</num> <heading>ADDITIONAL TECHNICAL AMENDMENTS RELATING TO TITLE XVI.</heading> <chapeau>Section 1110(a)(3) (42 U.S.C. 1310(a)(3)) is amended—<page identifier="/us/stat/111/624">111 STAT. 624</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by inserting “<quotedText>(or the Commissioner, with respect to any jointly financed cooperative agreement or grant concerning title XVI)</quotedText>” after “Secretary” the first place it appears; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting “<quotedText>(or the Commissioner, as applicable)</quotedText>” after “Secretary” the second place it appears.</content></paragraph> </section> <section> <num value="5525">SEC. 5525.</num> <heading>TECHNICAL AMENDMENTS RELATING TO DRUG ADDICTS AND ALCOHOLICS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Clarification Relating to the Effective Date of the Denial of SSI Disability Benefits to Drug Addicts and Alcoholics</inline>.—</heading><chapeau>Section 105(b)(5) of the Contract with America <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1382">42 USC 1382 note</ref>.</p></sidenote>Advancement Act of 1996 (Public Law 104–121; 110 Stat. 853) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subparagraph (A), by striking “<quotedText>by the Commissioner of Social Security</quotedText>” and “by the Commissioner”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by redesignating subparagraph (D) as subparagraph (F) and by inserting after subparagraph (C) the following new subparagraphs: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <chapeau>For purposes of this paragraph, an individual’s claim, with respect to supplemental security income benefits under title XVI of the Social Security Act based on disability, which has been denied in whole before the date of the enactment of this Act, may not be considered to be finally adjudicated before such date if, on or after such date—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>there is pending a request for either administrative or judicial review with respect to such claim, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>there is pending, with respect to such claim, a readjudication by the Commissioner of Social Security pursuant to relief in a class action or implementation by the Commissioner of a court remand order.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>Notwithstanding the provisions of this paragraph, with respect to any individual for whom the Commissioner does not perform the eligibility redetermination before the date prescribed in subparagraph (C), the Commissioner shall perform such eligibility redetermination in lieu of a continuing disability review whenever the Commissioner determines that the individual’s eligibility is subject to redetermination based on the preceding provisions of this paragraph, and the provisions of section 1614(a)(4) of the Social Security Act shall not apply to such redetermination.”.</content></subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Corrections to Effective Date of Provisions Concerning Representative Payees and Treatment Referrals Of SSI Beneficiaries Who Are Drug Addicts and Alcoholics</inline>.—</heading><content>Section 105(b)(5)(B) of such Act (Public Law 104–121; 110 Stat. 853) is amended to read as follows: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>The amendments made by paragraphs (2) and (3) shall take effect on July 1, 1996, with respect to any individual—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>whose claim for benefits is finally adjudicated on or after the date of the enactment of this Act, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>whose eligibility for benefits is based upon an eligibility redetermination made pursuant to subparagraph (C).”.<page identifier="/us/stat/111/625">111 STAT. 625</page></content></clause> </subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Repeal of Obsolete Reporting Requirements</inline>.—</heading><content>Subsections (a)(3)(B) and (b)(3)(B)(ii) of section 201 of the Social Security Independence and Program Improvements Act of 1994 (Public Law 103–296; 108 Stat. 1497, 1504) are repealed.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s925">42 USC 925 note</ref>, 1382 note.</p></sidenote></content> </subsection> </section> <section> <num value="5526">SEC. 5526.</num> <heading>ADVISORY BOARD PERSONNEL.</heading> <chapeau>Section 703(i) (42 U.S.C. 903(i)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in the first sentence, by striking and three” and all that follows through “Board,”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in the last sentence, by striking “<quotedText>clerical</quotedText>”.</content></paragraph> </section> <section> <num value="5527">SEC. 5527.</num> <heading>TIMING OF DELIVERY OF OCTOBER 1, 2000, SSI BENEFIT PAYMENTS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s909">42 USC 909 note</ref>.</p></sidenote> <content>Notwithstanding the provisions of section 708(a) of the Social Security Act (42 U.S.C. 908(a)), the day designated for delivery of benefit payments under title XVI of such Act for October 2000 shall be the second day of such month.</content> </section> <section> <num value="5528">SEC. 5528.</num> <heading>EFFECTIVE DATES.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s903">42 USC 903 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Except as provided in this section, the amendments made by this chapter shall take effect as if included in the enactment of title II of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104–193; 110 Stat. 2185).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Section 5524 Amendments</inline>.—</heading><content>The amendments made by section 5524 of this Act shall take effect as if included in the enactment of the Social Security Independence and Program Improvements Act of 1994 (Public Law 103–296; 108 Stat. 1464).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Section 5525 Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendments made by subsections (a) and (b) of section 5525 of this Act shall take effect as if included in the enactment of section 105 of the Contract with America Advancement Act of 1996 (Public Law 104–121; 110 Stat. 852 et seq.).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Repeals</inline>.—</heading><content>The repeals made by section 5525(c) shall take effect on the date of the enactment of this Act.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Section 5526 Amendments</inline>.—</heading><content>The amendments made by section 5526 of this Act shall take effect as if included in the enactment of section 108 of the Contract with America Advancement Act of 1996 (Public Law 104–121; 110 Stat. 857).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Section 5227</inline>.—</heading><content>Section 5227 shall take effect on the date of the enactment of this Act.</content> </subsection> </section> </chapter> <chapter> <num value="3">CHAPTER 3—</num><heading>CHILD SUPPORT</heading> <section> <num value="5531">SEC. 5531.</num> <heading>STATE OBLIGATION TO PROVIDE CHILD SUPPORT ENFORCEMENT SERVICES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Individuals Subject to Fee for Child Support Enforcement Services</inline>.—</heading><content>Section 454(6)(B) (42 U.S.C. 654(6)(B)) is amended by striking “<quotedText>individuals not receiving assistance under any State program funded under part A, which</quotedText>” and inserting “<quotedText>an individual, other than an individual receiving assistance under a State program funded under part A or E, or under a State plan approved under title XIX, or who is required by the State to cooperate with the State agency administering the program under this part pursuant to subsection (1) or (m) of section 6 of the Food Stamp Act of 1977, and</quotedText>”.<page identifier="/us/stat/111/626">111 STAT. 626</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Correction of Reference</inline>.—</heading><content>Section 464(a)(2)(A) (42 U.S.C. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s664">42 USC 664</ref>.</p></sidenote>654(a)(2)(A)) is amended in the first sentence by striking “<quotedText>section 454(6)</quotedText>” and inserting “<quotedText>section 454(4)(A)(ii)</quotedText>”.</content> </subsection> </section> <section> <num value="5632">SEC. 5632.</num> <heading>DISTRIBUTION OF COLLECTED SUPPORT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Continuation of Assignments</inline>.—</heading><chapeau>Section 457(b) (42 U.S.C. 657(b)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>which were assigned</quotedText>” and inserting “<quotedText>assigned</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<quotedText>and which were in effect</quotedText>” and all that follows and inserting “<quotedText>and in effect on September 30, 1997 (or such earlier date, on or after August 22, 1996, as the State may choose), shall remain assigned after such date.</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">State Option for Applicability</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 457(a) (42 U.S.C. 657(a)) is amended by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">State option for applicability</inline>.—</heading><content>Notwithstanding any other provision of this subsection, a State may elect to apply the rules described in clauses (i)(II), (ii)(II), and (v) of paragraph (2)(B) to support arrearages collected on and after October 1, 1998, and, if the State makes such an election, shall apply the provisions of this section, as in effect and applied on the day before the date of enactment of section 302 of the Personal Responsibility and Work Opportunity Act of 1996 (Public Law 104–193, 110 Stat. 2200), other than subsection (b)(1) (as so in effect), to amounts collected before October 1, 1998”.</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading><chapeau>Section 408(a)(3)(A) (42 U.S.C. 608(a)(3)(A)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in clause (i), by inserting “<quotedText>(I)</quotedText>” after “(i)”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>in clause (ii)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by striking “<quotedText>(ii)</quotedText>” and inserting “<quotedText>(II)</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking the period and inserting “<quotedText>; or</quotedText>”; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by adding at the end the following: <quotedContent> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>if the State elects to distribute collections under section 457(a)(6), the date the family ceases to receive assistance under the program, if the assignment is executed on or after October 1, 1998.”.</content></clause> </quotedContent> </content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Distribution of Collections With Respect to Families Receiving Assistance</inline>.—</heading><content>Section 457(a)(1) (42 U.S.C. 657(a)(1)) is amended by adding at the end the following flush language: <quotedContent> <p class="indent0 fontsize10">“In no event shall the total of the amounts paid to the Federal Government and retained by the State exceed the total of the amounts that have been paid to the family as assistance by the State.”.</p> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Families Under Certain Agreements</inline>.—</heading><content>Section 457(a)(4) (42 U.S.C. 657(a)(4)) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Families under certain agreements</inline>.—</heading><content>In the case of an amount collected for a family in accordance with a cooperative agreement under section 454(33), distribute the amount so collected pursuant to the terms of the agreement.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Study and Report</inline>.—</heading><content>Section 457(a)(5) (42 U.S.C. 657(a)(5)) is amended by striking “<quotedText>1998</quotedText>” and inserting “<quotedText>1999</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Corrections of References</inline>.—</heading><chapeau>Section 457(a)(2)(B) (42 U.S.C. 657(a)(2)(B)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in clauses (i)(I) and (ii)(I)—<page identifier="/us/stat/111/627">111 STAT. 627</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>(other than subsection (b)(1))</quotedText>” each place it appears; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by inserting “<quotedText>(other than subsection (b)(1) (as so in effect))</quotedText>” after “1996” each place it appears; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in clause (ii)(II), by striking “<quotedText>paragraph (4)</quotedText>” and inserting “<quotedText>paragraph (5)</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g)</num> <heading><inline class="smallCaps">Correction of Territorial Match</inline>.—</heading><content>Section 457(c)(3)(A) (42 U.S.C. 657(C)(3)(A)) is amended by striking “<quotedText>the Federal medical assistance percentage (as defined in section 1118)</quotedText>” and inserting “<quotedText>75 percent</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Federal share</inline>.—</heading><content>Section 457(c)(2) (42 U.S.C. 657(c)(2)) is amended by striking “<quotedText>collected</quotedText>” the second place it appears and inserting “<quotedText>distributed</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Federal medical assistance percentage</inline>.—</heading><content>Section 457(C)(3)(B) (42 U.S.C. 657(c)(3)(B)) is amended by striking “<quotedText>as in effect on September 30, 1996</quotedText>” and inserting “<quotedText>as such section was in effect on September 30, 1995</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="i">(i)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Section 464(a)(2)(A) (42 U.S.C. 664(a)(2)(A)) is amended, in the penultimate sentence, by inserting “<quotedText>in accordance with section 457</quotedText>” after “owed”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is amended by striking “<quotedText>457(b)(4) or (d)(3)</quotedText>” and inserting “<quotedText>457</quotedText>”.</content></paragraph> </subsection> </section> <section> <num value="5533">SEC. 5533.</num> <heading>CIVIL PENALTIES RELATING TO STATE DIRECTORY OF NEW HIRES.</heading> <chapeau>Section 453A (42 U.S.C. 653a) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in subsection (d)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in the matter preceding paragraph (1), by striking “<quotedText>shall be less than</quotedText>” and inserting “<quotedText>shall not exceed</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in paragraph (1), by striking “<quotedText>$25</quotedText>” and inserting “<quotedText>$25 per failure to meet the requirements of this section with respect to a newly hired employee</quotedText>”; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subsection (g)(2)(B), by striking “<quotedText>extracts</quotedText>” and all that follows through “Labor” and inserting “<quotedText>information</quotedText>”.</content></paragraph> </section> <section> <num value="5534">SEC. 5534.</num> <heading>FEDERAL PARENT LOCATOR SERVICE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 453 (42 U.S.C. 653) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in subsection (a)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by inserting “<quotedText>(1)</quotedText>” after “(a)”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking “<quotedText>to obtain</quotedText>” and all that follows through the period and inserting “for the purposes specified in paragraphs (2) and (3). <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <chapeau>For the purpose of establishing parentage, establishing, setting the amount of, modifying, or enforcing child support obligations, the Federal Parent Locator Service shall obtain and transmit to any authorized person specified in subsection (c)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>information on, or facilitating the discovery of, the location of any individual—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>who is under an obligation to pay child support;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>against whom such an obligation is sought; or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>to whom such an obligation is owed,</content></clause> <continuation class="indent0 fontsize10">including the individual’s social security number (or numbers), most recent address, and the name, address, and employer identification number of the individual’s employer;<page identifier="/us/stat/111/628">111 STAT. 628</page></continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>information on the individual’s wages (or other income) from, and benefits of, employment (including rights to or enrollment in group health care coverage); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>information on the type, status, location, and amount of any assets of, or debts owed by or to, any such individual.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>For the purpose of enforcing any Federal or State law with respect to the unlawful taking or restraint of a child, or making or enforcing a child custody or visitation determination, as defined in section 463(dMD, the Federal Parent Locator Service shall be used to obtain and transmit the information specified in section 463(c) to the authorized persons specified in section 463(d)(2).”;</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking subsection (b) and inserting the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num><paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>Upon request, filed in accordance with subsection (d), of any authorized person, as defined in subsection (c) for the information described in subsection (a)(2), or of any authorized person, as defined in section 463(d)(2) for the information described in section 463(c), the Secretary shall, notwithstanding any other provision of law, provide through the Federal Parent Locator Service such information to such person, if such information—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>is contained in any files or records maintained by the Secretary or by the Department of Health and Human Services; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>is not contained in such files or records, but can be obtained by the Secretary, under the authority conferred by subsection (e), from any other department, agency, or instrumentality of the United States or of any State,</content></subparagraph> <continuation class="indent0 fontsize10">and is not prohibited from disclosure under paragraph (2).</continuation> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2)</num> <chapeau>No information shall be disclosed to any person if the disclosure of such information would contravene the national policy or security interests of the United States or the confidentiality of census data. The Secretary shall give priority to requests made by any authorized person described in subsection (c)(1). No information shall be disclosed to any person if the State has notified the Secretary that the State has reasonable evidence of domestic violence or child abuse and the disclosure of such information could be harmful to the custodial parent or the child of such parent, provided that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>in response to a request from an authorized person (as defined in subsection (c) of this section and section 463(d)(2)), the Secretary shall advise the authorized person that the Secretary has been notified that there is reasonable evidence of domestic violence or child abuse and that information can only be disclosed to a court or an agent of a court pursuant to subparagraph (B); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num><chapeau> information may be disclosed to a court or an agent of a court described in subsection (c)(2) of this section or section 463(d)(2)(B), if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>upon receipt of information from the Secretary, the court determines whether disclosure to any other person of that information could be harmful to the parent or the child; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>if the court determines that disclosure of such information to any other person could be harmful, the court and its agents shall not make any such disclosure.<page identifier="/us/stat/111/629">111 STAT. 629</page></content></clause> </subparagraph> </paragraph> <subparagraph class="indent0 fontsize10"><num value="3">“(3)</num> <content>Information received or transmitted pursuant to this section shall be subject to the safeguard provisions contained in section 454(26).”; and</content></subparagraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <chapeau>in subsection (c)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in paragraph (1), by striking “<quotedText>or to seek to enforce orders providing child custody or visitation rights</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>in paragraph (2)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by inserting “<quotedText>or to serve as the initiating court in an action to seek an order</quotedText>” after “issue an order”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking “<quotedText>or to issue an order against a resident parent for child custody or visitation rights</quotedText>”.</content></clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Use of the Federal Parent Locator Service</inline>.—</heading><chapeau>Section 463 (42 U.S.C. 663) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in subsection (a)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <chapeau>in the matter preceding paragraph (1)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by striking “<quotedText>any State which is able and willing to do so</quotedText>”, and inserting “<quotedText>every State</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking “<quotedText>such State</quotedText>” and inserting “<quotedText>each State</quotedText>”; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in paragraph (2), by inserting “<quotedText>or visitation</quotedText>” after “custody”;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subsection (b)(2), by inserting “<quotedText>or visitation</quotedText>” after “custody”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <chapeau>in subsection (d)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in paragraph (1), by inserting “<quotedText>or visitation</quotedText>” after “custody”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in subparagraphs (A) and (B) of paragraph (2), by inserting “<quotedText>or visitation</quotedText>” after “custody” each place it appears;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>in subsection (f)(2), by inserting “<quotedText>or visitation</quotedText>” after “custody”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>by striking “<quotedText>noncustodial</quotedText>” each place it appears.</content></paragraph> </subsection> </section> <subsection class="indent0 fontsize10"> <num value="5535">SEC. 5535.</num> <heading>ACCESS TO REGISTRY DATA FOR RESEARCH PURPOSES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 453(j)(5) (42 U.S.C. 653(j)(5)) is amended by inserting “<quotedText>data in each component of the Federal Parent Locator Service maintained under this section and to</quotedText>” before “information”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><chapeau>Section 453 (42 U.S.C. 653) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subsection (j)(3)(B), by striking “<quotedText>registries</quotedText>” and inserting “<quotedText>components</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subsection (k)(2), by striking “<quotedText>subsection (j)(3)</quotedText>” and inserting “<quotedText>section 453A(g)(2)</quotedText>”.</content></paragraph> </subsection> </subsection> <section> <num value="5536">SEC. 5536.</num> <heading>COLLECTION AND USE OF SOCIAL SECURITY NUMBERS FOR USE IN CHILD SUPPORT ENFORCEMENT.</heading> <chapeau>Section 466(a)(13) (42 U.S.C. 666(a)(13)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in subparagraph (A)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>commercial</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by inserting “<quotedText>recreational license,</quotedText>” after “occupational license,”; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in the matter following subparagraph (C), by inserting “<quotedText>to be used on the face of the document while the social security number is kept on file at the agency</quotedText>” after “other than the social security number”.<page identifier="/us/stat/111/630">111 STAT. 630</page></content></paragraph> </section> <section> <num value="5537">SEC. 5537.</num> <heading>ADOPTION OF UNIFORM STATE LAWS.</heading> <content>Section 466(f) (42 U.S.C. 666(f)) is amended by striking “<quotedText>together</quotedText>” and all that follows and inserting “<quotedText>and as in effect on August 22, 1996, including any amendments officially adopted as of such date by the National Conference of Commissioners on Uniform State Laws.</quotedText>”.</content> </section> <section> <num value="5538">SEC. 5538.</num> <heading>STATE LAWS PROVIDING EXPEDITED PROCEDURES.</heading> <chapeau>Section 466(c) (42 U.S.C. 666(c)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in paragraph (1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in subparagraph (E), by inserting “<quotedText>, part E,</quotedText>” after “part A”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in subparagraph (G), by inserting “<quotedText>any current support obligation and</quotedText>” after “to satisfy”; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>in paragraph (2)(A)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in clause (i), by striking “<quotedText>the tribunal and</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>in clause (ii)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by striking “<quotedText>tribunal may</quotedText>” and inserting “<quotedText>court or administrative agency of competent jurisdiction shall</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking “<quotedText>filed with the tribunal</quotedText>” and inserting “<quotedText>filed with the State case registry</quotedText>”.</content></clause> </subparagraph> </paragraph> </section> <section> <num value="5539">SEC. 5539.</num> <heading>VOLUNTARY PATERNITY ACKNOWLEDGEMENT.</heading> <content>Section 466(a)(5)(C)(i) (42 U.S.C. 666(a)(5)(C)(i)) is amended by inserting “<quotedText>, or through the use of video or audio equipment,</quotedText>” after “orally”.</content> </section> <section> <num value="5540">SEC. 5540.</num> <heading>CALCULATION OF PATERNITY ESTABLISHMENT PERCENTAGE.</heading> <content>Section 452(g)(2) (42 U.S.C. 652(g)(2)) is amended, in the matter following subparagraph (C), by striking “<quotedText>subparagraph (A)</quotedText>” and inserting “<quotedText>subparagraphs (A) and (B)</quotedText>”.</content> </section> <section> <num value="5541">SEC. 5541.</num> <heading>MEANS AVAILABLE FOR PROVISION OF TECHNICAL ASSISTANCE AND OPERATION OF FEDERAL PARENT LOCATOR SERVICE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Technical Assistance</inline>.—</heading><content>Section 452(j) (42 U.S.C. 652(j)) is amended, in the matter preceding paragraph (1), by striking “<quotedText>to cover costs incurred by the Secretary</quotedText>” and inserting “<quotedText>which shall be available for use by the Secretary, either directly or through grants, contracts, or interagency agreements,</quotedText>”</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Operation of Federal Parent Locator Service</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Means available</inline>.—</heading><chapeau>Section 453(o) (42 U.S.C. 653(o)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in the heading, by striking “<quotedText><inline class="smallCaps">Recovery of Costs</inline></quotedText>” and inserting “<quotedText><inline class="smallCaps">Use of Set-Aside Funds</inline></quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking “<quotedText>to cover costs incurred by the Secretary</quotedText>” and inserting “<quotedText>which shall be available for use by the Secretary, either directly or through grants, contracts, or interagency agreements,</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Availability of funds</inline>.—</heading><content>Section 453(o) (42 U.S.C. 653(o)) is amended by adding at the end the following: “<quotedText>Amounts appropriated under this subsection for each of fiscal years 1997 through 2001 shall remain available until expended.</quotedText>”.<page identifier="/us/stat/111/631">111 STAT. 631</page></content></paragraph> </subsection> </section> <section> <num value="5542">SEC. 5542.</num> <heading>AUTHORITY TO COLLECT SUPPORT FROM FEDERAL EMPLOYEES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Response to Notice or Process</inline>.—</heading><content>Section 459(c)(2)(C) (42 U.S.C. 659(c)(2)(C)) is amended by striking “<quotedText>respond to the order, process, or interrogatory</quotedText>” and inserting “<quotedText>withhold available sums in response to the order or process, or answer the interrogatory</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Moneys Subject to Process</inline>.—</heading><chapeau>Section 459(h)(1) (42 U.S.C. 659(h)(1)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in the matter preceding subparagraph (A) and in subparagraph (A)(i), by striking “<quotedText>paid or</quotedText>” each place it appears;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>in subparagraph (A)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in clause (ii)(V), by striking “<quotedText>and</quotedText>” at the end;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>in clause (iii)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by inserting “<quotedText>or payable</quotedText>” after “paid”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking “<quotedText>but</quotedText>” and inserting “<quotedText>; and</quotedText>”; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by inserting after clause (iii), the following: <quotedContent> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>benefits paid or payable under the Railroad Retirement System, but”; and</content></clause> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <chapeau>in subparagraph (B)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in clause (i), by striking “<quotedText>or</quotedText>” at the end;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in clause (ii), by striking the period and inserting “<quotedText>; or</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by adding at the end the following: <quotedContent> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>of periodic benefits under title 38, United States Code, except as provided in subparagraph (A)(ii)(V).”.</content></clause> </quotedContent> </content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>Section 454(19)(B)(ii) (42 U.S.C. 654(19)(B)(ii)) is amended by striking “<quotedText>section 462(e)</quotedText>” and inserting “<quotedText>section 459(i)(5)</quotedText>”.</content> </subsection> </section> <section> <num value="5543">SEC. 5543.</num> <heading>DEFINITION OF SUPPORT ORDER.</heading> <content>Section 453(p) (42 U.S.C. 653(p)), is amended by striking “<quotedText>a child and</quotedText>” and inserting “<quotedText>of</quotedText>”.</content> </section> <section> <num value="5544">SEC. 5544.</num> <heading>STATE LAW AUTHORIZING SUSPENSION OF LICENSES.</heading> <content>Section 466(a)(16) (42 U.S.C. 666(a)(16)) is amended by inserting “<quotedText>and sporting</quotedText>” after “recreational”.</content> </section> <section> <num value="5545">SEC. 5545.</num> <heading>INTERNATIONAL SUPPORT ENFORCEMENT.</heading> <content>Section 454(32)(A) (42 U.S.C. 654(32)(A)) is amended by striking “<quotedText>section 459A(d)(2)</quotedText>” and inserting “<quotedText>section 459A(d)</quotedText>”.</content> </section> <section> <num value="5546">SEC. 5546.</num> <heading>CHILD SUPPORT ENFORCEMENT FOR INDIAN TRIBES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Cooperative Agreements by Indian Tribes and States for Child Support Enforcement</inline>.—</heading><chapeau>Section 454(33) (42 U.S.C. 654(33)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>and enforce support orders, and</quotedText>” and inserting “<quotedText>or enforce support orders, or</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<quotedText>guidelines established by such tribe or organization</quotedText>” and inserting “<quotedText>guidelines established or adopted by such tribe or organization</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by striking “<quotedText>funding collected</quotedText>” and inserting “<quotedText>collections</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>by striking “<quotedText>such funding</quotedText>” and inserting “<quotedText>such collections</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Correction of Subsection Designation</inline>.—</heading><content>Section 455 (42 U.S.C. 655) is amended by redesignating subsection (b), as added <page identifier="/us/stat/111/632">111 STAT. 632</page>by section 375(b) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104–193, 110 Stat. 2256), as subsection (f).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Direct Grants to Tribes</inline>.—</heading><content>Section 455(f) (42 U.S.C. 655(f)), as so redesignated by subsection (b) of this section, is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <content>The Secretary may make direct payments under this part to an Indian tribe or tribal organization that demonstrates to the satisfaction of the Secretary that it has the capacity to operate a child support enforcement program meeting the objectives of this part, including establishment of paternity, establishment, modification, and enforcement of support orders, and location of absent <sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote>parents. The Secretary shall promulgate regulations establishing the requirements which must be met by an Indian tribe or tribal organization to be eligible for a grant under this subsection.”.</content> </subsection> </quotedContent> </content></subsection> </section> <section> <num value="5547">SEC. 5547.</num> <heading>CONTINUATION OF RULES FOR DISTRIBUTION OF SUPPORT IN THE CASE OF A TITLE IV–E CHILD.</heading> <chapeau>Section 457 (42 U.S.C. 657) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subsection (a), in the matter preceding paragraph (1), by striking “<quotedText>subsection (e)</quotedText>” and inserting “<quotedText>subsections (e) and (f)</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <chapeau>Notwithstanding the preceding provisions of this section, amounts collected by a State as child support for months in any period on behalf of a child for whom a public agency is making foster care maintenance payments under part E—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>shall be retained by the State to the extent necessary to reimburse it for the foster care maintenance payments made with respect to the child during such period (with appropriate reimbursement of the Federal Government to the extent of its participation in the financing);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>shall be paid to the public agency responsible for supervising the placement of the child to the extent that the amounts collected exceed the foster care maintenance payments made with respect to the child during such period but not the amounts required by a court or administrative order to be paid as support on behalf of the child during such period; and the responsible agency may use the payments in the manner it determines will serve the best interests of the child, including setting such payments aside for the child’s future needs or making all or a part thereof available to the person responsible for meeting the child’s day-to-day needs; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>shall be retained by the State, if any portion of the amounts collected remains after making the payments required under paragraphs (1) and (2), to the extent that such portion is necessary to reimburse the State (with appropriate reimbursement to the Federal Government to the extent of its participation in the financing) for any past foster care maintenance payments (or payments of assistance under the State program funded under part A) which were made with respect to the child (and with respect to which past collections have not previously been retained);</content></paragraph> <continuation class="indent0 fontsize10">and any balance shall be paid to the State agency responsible for supervising the placement of the child, for use by such agency in accordance with paragraph (2).”.<page identifier="/us/stat/111/633">111 STAT. 633</page></continuation> </subsection> </quotedContent> </content></paragraph> </section> <section> <num value="5548">SEC. 5548.</num> <heading>GOOD CAUSE IN FOSTER CARE AND FOOD STAMP CASES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">State Plan</inline>.—</heading><chapeau>Section 454(4)(A)(i) (42 U.S.C. 654(4)(A)(i)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>or</quotedText>” before “(III)”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting “<quotedText>or (IV) cooperation is required pursuant to section 6(1)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2015(1)(1)),</quotedText>” after “title XIX,”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><chapeau>Section 454(29) (42 U.S.C. 654(29)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in subparagraph (A)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in the matter preceding clause (i), by striking “<quotedText>part A of this title or the State program under title XIX</quotedText>” and inserting “<quotedText>part A, the State program under part E, the State program under title XIX, or the food stamp program, as defined under section 3(h) of the Food Stamp Act of 1977 (7 U.S.C. 2012(h)),</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking clauses (i) and (ii) and all that follows through the semicolon and inserting the following: <quotedContent> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>in the case of the State program funded under part A, the State program under part E, or the State program under title XIX shall, at the option of the State, be defined, taking into account the best interests of the child, and applied in each case, by the State agency administering such program; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>in the case of the food stamp program, as defined under section 3(h) of the Food Stamp Act of 1977 (7 U.S.C. 2012(h)), shall be defined and applied in each case under that program in accordance with section 6(1)(2) of the Food Stamp Act of 1977 (7 U.S.C. 2015(1)(2));”;</content></clause> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subparagraph (D), by striking “<quotedText>or the State program under title XIX</quotedText>” and inserting “<quotedText>the State program under part E, the State program under title XIX, or the food stamp program, as defined under section 3(h) of the Food Stamp Act of 1977 (7 U.S.C. 2012(h))</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>in subparagraph (E), by striking “<quotedText>individual,</quotedText>” and all that follows through “XIX,” and inserting “<quotedText>individual and the State agency administering the State program funded under part A, the State agency administering the State program under part E, the State agency administering the State program under title XIX, or the State agency administering the food stamp program, as defined under section 3(h) of the Food Stamp Act of 1977 (7 U.S.C. 2012(h)),</quotedText>”.</content></paragraph> </subsection> </section> <section> <num value="5549">SEC. 5549.</num> <heading>DATE OF COLLECTION OF SUPPORT.</heading> <content>Section 454B(c)(1) (42 U.S.C. 654B(c)(1)) is amended by adding<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s654b">42 USC 654b</ref>.</p></sidenote> at the end the following: “The date of collection for amounts collected and distributed under this part is the date of receipt by the State disbursement unit, except that if current support is withheld by an employer in the month when due and is received by the State disbursement unit in a month other than the month when due, the date of withholding may be deemed to be the date of collection.”.</content> </section> <section> <num value="5550">SEC. 5550.</num> <heading>ADMINISTRATIVE ENFORCEMENT IN INTERSTATE CASES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Procedures</inline>.—</heading><content>Section 466(a)(14) (42 U.S.C. 666(a)(14)) is amended to read as follows:<page identifier="/us/stat/111/634">111 STAT. 634</page> <quotedContent> <paragraph class="indent1 fontsize10"><num value="14">“(14)</num> <heading><inline class="smallCaps">High-Volume, Automated Administrative Enforcement in Interstate Cases</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Procedures under which—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the State shall use high-volume automated administrative enforcement, to the same extent as used for intrastate cases, in response to a request made by another State to enforce support orders, and shall promptly report the results of such enforcement procedure to the requesting State;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>the State may, by electronic or other means, transmit to another State a request for assistance in enforcing support orders through high-volume, automated administrative enforcement, which request—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>shall include such information as will enable the State to which the request is transmitted to compare the information about the cases to the information in the data bases of the State; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <chapeau>shall constitute a certification by the requesting State—</chapeau> <item class="indent5 fontsize10"><num value="aa">“(aa)</num> <content>of the amount of support under an order the payment of which is in arrears; and</content></item> <item class="indent5 fontsize10"><num value="bb">“(bb)</num> <content>that the requesting State has complied with all procedural due process requirements applicable to each case;</content></item> </subclause> </clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>if the State provides assistance to another State pursuant to this paragraph with respect to a case, neither State shall consider the case to be transferred to the caseload of such other State; and</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Records.</p></sidenote> <chapeau>the State shall maintain records of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the number of such requests for assistance received by the State;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the number of cases for which the State collected support in response to such a request; and</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>the amount of such collected support.</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">High-volume automated administrative enforcement</inline>.—</heading><content>In this part, the term ‘high-volume automated administrative enforcement’ means the use of automatic data processing to search various State data bases, including license records, employment service data, and State new hire registries, to determine whether information is available regarding a parent who owes a child support obligation.”.</content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Incentive Payments</inline>.—</heading><content>Section 458(d) (42 U.S.C. 658(d)) is amended by inserting “<quotedText>, including amounts collected under section 466(a)(14),</quotedText>” after “another State”.</content> </subsection> </section> <section> <num value="5551">SEC. 5551.</num> <heading>WORK ORDERS FOR ARREARAGES.</heading> <content>Section 466(a)(15) (42 U.S.C. 666(a)(15)) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="15">“(15)</num> <heading><inline class="smallCaps">Procedures to ensure that persons owing overdue support work or have a plan for payment of such support</inline>.—</heading><chapeau>Procedures under which the State has the authority, in any case in which an individual owes overdue support with respect to a child receiving assistance under a State program funded under part A, to issue an order or to request that <page identifier="/us/stat/111/635">111 STAT. 635</page>a court or an administrative process established pursuant to State law issue an order that requires the individual to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>pay such support in accordance with a plan approved by the court, or, at the option of the State, a plan approved by the State agency administering the State program under this part; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>if the individual is subject to such a plan and is not incapacitated, participate in such work activities (as defined in section 407(d)) as the court, or, at the option of the State, the State agency administering the State program under this part, deems appropriate.”.</content></subparagraph> </paragraph> </quotedContent> </content></section> <section> <num value="5552">SEC. 5552.</num> <heading>ADDITIONAL TECHNICAL STATE PLAN AMENDMENTS.</heading> <chapeau>Section 454 (42 U.S.C. 654) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in paragraph (8)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <chapeau>in the matter preceding subparagraph (A)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by striking “<quotedText>noncustodial</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by inserting “<quotedText>, for the purpose of establishing parentage, establishing, setting the amount of, modifying, or enforcing child support obligations, or making or enforcing a child custody or visitation determination, as defined in section 463(d)(1)</quotedText>” after “provide that”;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in subparagraph (A), by striking the comma and inserting a semicolon;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>in subparagraph (B), by striking the semicolon and inserting a comma; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>by inserting after subparagraph (B), the following flush language: <quotedContent> <p class="indent0 fontsize10">“and shall, subject to the privacy safeguards required under paragraph (26), disclose only the information described in sections 453 and 463 to the authorized persons specified in such sections for the purposes specified in such sections;”;</p> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>in paragraph (17)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>in the case of a State which has</quotedText>” and inserting “<quotedText>provide that the State will have</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by inserting “<quotedText>and</quotedText>” after “section 453,”; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <chapeau>in paragraph (26)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in the matter preceding subparagraph (A), by striking “<quotedText>will</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>in subparagraph (A)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by inserting “<quotedText>, modify,</quotedText>” after “establish”, the second place it appears; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by inserting “<quotedText>, or to make or enforce a child custody determination</quotedText>” after “support”;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <chapeau>in subparagraph (B)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by inserting “<quotedText>or the child</quotedText>” after “1 party”;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by inserting “<quotedText>or the child</quotedText>” after “former party”; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>by striking “<quotedText>and</quotedText>” at the end;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <chapeau>in subparagraph (C)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by inserting “<quotedText>or the child</quotedText>” after “1 party”;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking “<quotedText>another party</quotedText>” and inserting “<quotedText>another person</quotedText>”;</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>by inserting “<quotedText>to that person</quotedText>” after “release of the information”; and</content></clause> <clause class="indent3 fontsize10"><num value="iv">(iv)</num> <content>by striking “<quotedText>former party</quotedText>” and inserting “<quotedText>party or the child</quotedText>”; and<page identifier="/us/stat/111/636">111 STAT. 636</page></content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>in cases in which the prohibitions under subparagraphs (B) and (C) apply, the requirement to notify the Secretary, for purposes of section 453(b)(2), that the State has reasonable evidence of domestic violence or child abuse against a party or the child and that the disclosure of such information could be harmful to the party or the child; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Courts.</p></sidenote> <content>procedures providing that when the Secretary discloses information about a parent or child to a State court or an agent of a State court described in section 453(c)(2) or 463(a)(2)(B), and advises that court or agent that the Secretary has been notified that there is reasonable evidence of domestic violence or child abuse pursuant to section 453(b)(2), the court shall determine whether disclosure to any other person of information received from the Secretary could be harmful to the parent or child and, if the court determines that disclosure to any other person could be harmful, the court and its agents shall not make any such disclosure;”.</content></subparagraph> </quotedContent> </content></subparagraph> </paragraph> </section> <section> <num value="5553">SEC. 5553.</num> <heading>FEDERAL CASE REGISTRY OF CHILD SUPPORT ORDERS.</heading> <chapeau>Section 453(h) (42 U.S.C. 653(h)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in paragraph (1), by inserting “<quotedText>and order</quotedText>” after “with respect to each case”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>in paragraph (2)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in the heading, by inserting “<quotedText><inline class="smallCaps">and order</inline></quotedText>” after “<inline class="smallCaps">case</inline>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by inserting “<quotedText>or an order</quotedText>” after “with respect to a case” and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by inserting “<quotedText>or order</quotedText>” after “and the State or States which have the case”.</content></subparagraph> </paragraph> </section> <section> <num value="5554">SEC. 5554.</num> <heading>FULL FAITH AND CREDIT FOR CHILD SUPPORT ORDERS.</heading> <chapeau>Section 1738B(f) of title 28, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in paragraph (4), by striking “<quotedText>a court may</quotedText>” and all that follows and inserting “<quotedText>a court having jurisdiction over the parties shall issue a child support order, which must be recognized.</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in paragraph (5), by inserting “<quotedText>under subsection (d)</quotedText>” after “jurisdiction”.</content></paragraph> </section> <section> <num value="5555">SEC. 5555.</num> <heading>DEVELOPMENT COSTS OF AUTOMATED SYSTEMS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Definition of State</inline>.—</heading><chapeau>Section 455(a)(3)(B) (42 U.S.C. 655(a)(3)(B)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in clause (i)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by inserting “<quotedText>or system described in clause (iii)</quotedText>” after “each State”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by inserting “<quotedText>or system</quotedText>” after “the State”; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following: <quotedContent> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>For purposes of clause (i), a system described in this clause is a system that has been approved by the Secretary to receive enhanced funding pursuant to the Family Support Act of 1988 (Public Law 100–485; 102 Stat. 2343) for the purpose of developing a system that meets the requirements of sections 454(16) (as in effect on and after September 30, 1995) and 454A, including systems that have received funding for such purpose pursuant to a waiver under section 1115(a).”.<page identifier="/us/stat/111/637">111 STAT. 637</page></content></clause> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Temporary Limitation on Payments</inline>.—</heading><chapeau>Section 344(b)(2) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (42 U.S.C. 655 note) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in subparagraph (B)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by inserting “<quotedText>or a system described in subparagraph (C)</quotedText>” after “to a State”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by inserting “<quotedText>or system</quotedText>” after “for the State”; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subparagraph (C), by striking “<quotedText>Act,</quotedText>” and all that follows and inserting “Act, and among systems that have been approved by the Secretary to receive enhanced funding pursuant to the Family Support Act of 1988 (Public Law 100–485; 102 Stat. 2343) for the purpose of developing a system that meets the requirements of sections 454(16) (as in effect on and after September 30, 1995) and 454A, including systems that have received funding for such purpose pursuant to a waiver under section 1115(a), which shall take into account— <quotedContent> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the relative size of such State and system caseloads under part D of title IV of the Social Security Act; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the level of automation needed to meet the automated data processing requirements of such part.”.</content></clause> </quotedContent> </content></paragraph> </subsection> </section> <section> <num value="5556">SEC. 5556.</num> <heading>ADDITIONAL TECHNICAL AMENDMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Elimination of Surplusage</inline>.—</heading><content>Section 466(c)(1)(F) (42 U.S.C. 666(c)(1)(F)) is amended by striking “<quotedText>of section 466</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Correction of Ambiguous Amendment</inline>.—</heading><content>Section 344(a)(1)(F) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104–193; 110 Stat. 2234)<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s654">42 USC 654</ref>.</p></sidenote> is amended by inserting “<quotedText>the first place such term appears</quotedText>” before “and all that follows”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Correction of Erroneously Drafted Provision</inline>.—</heading><content>Section 215 of the Department of Health and Human Services Appropriations Act, 1997, (as contained in section 101(e) of the Omnibus Consolidated Appropriations Act, 1997) is amended to read as follows:<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s652">42 USC 652</ref>, 653.</p></sidenote> <quotedContent> <section> <num value="215">“<inline class="smallCaps">Sec</inline>. 215.</num> <content class="inline">Sections 452(j) and 453(o) of the Social Security Act (42 U.S.C. 652(j) and 653(o)), as amended by section 345 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104–193; 110 Stat. 2237) are each amended by striking ‘section 457(a)’ and inserting ‘a plan approved under this part’. Amounts available under such sections 452(j) and 453(o)<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s652">42 USC 652 note</ref>.</p></sidenote> shall be calculated as though the amendments made by this section were effective October 1, 1995.”.</content> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Elimination of Surplusage</inline>.—</heading><content>Section 456(a)(2)(B) (42 U.S.C. 656(a)(2)(B)) is amended by striking “<quotedText>, and</quotedText>” and inserting a period.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Correction of Date</inline>.—</heading><content>Section 466(a)(1)(B) (42 U.S.C. 666(a)(1)(B)) is amended by striking “<quotedText>October 1, 1996</quotedText>” and inserting “<quotedText>January 1, 1994</quotedText>”.</content> </subsection> </section> <section> <num value="5557">SEC. 5557.</num> <heading>EFFECTIVE DATE.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s608">42 USC 608 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Except as provided in subsection (b), the amendments made by this chapter shall take effect as if included in the enactment of title III of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104–193; 110 Stat. 2105).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Exception</inline>.—</heading><content>The amendments made by section 5532(b)(2) of this Act shall take effect as if the amendments had been included <page identifier="/us/stat/111/638">111 STAT. 638</page>in the enactment of section 103(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104–193; 110 Stat. 2112).</content> </subsection> </section> </chapter> <chapter> <num value="4">CHAPTER 4—</num><heading>RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS</heading> <subchapter> <num value="A">Subchapter A—</num><heading>Eligibility for Federal Benefits</heading> <section> <num value="5561">SEC. 5561.</num> <heading>ALIEN ELIGIBILITY FOR FEDERAL BENEFITS: LIMITED APPLICATION TO MEDICARE AND BENEFITS UNDER THE RAILROAD RETIREMENT ACT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Limited Application to Medicare</inline>.—</heading><content>Section 401(b) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1611(b)) is amended by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>Subsection (a) shall not apply to any benefit payable under title XVIII of the Social Security Act (relating to the medicare program) to an alien who is lawfully present in the United States as determined by the Attorney General and, with respect to benefits payable under part A of such title, who was authorized to be employed with respect to any wages attributable to employment which are counted for purposes of eligibility for such benefits.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Limited Application to Benefits Under the Railroad Retirement Act</inline>.—</heading><content>Section 401(b) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1611(b)) (as amended by subsection (a)) is amended by inserting at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>Subsection (a) shall not apply to any benefit payable under the Railroad Retirement Act of 1974 or the Railroad Unemployment Insurance Act to an alien who is lawfully present in the United States as determined by the Attorney General or to an alien residing outside the United States.”.</content></paragraph> </quotedContent> </content></subsection> </section> <section> <num value="5562">SEC. 5562.</num> <heading>EXCEPTIONS TO BENEFIT LIMITATIONS: CORRECTIONS TO REFERENCE CONCERNING ALIENS WHOSE DEPORTATION IS WITHHELD.</heading> <content>Sections 402(a)(2)(A), 402(b)(2)(A), 403(b)(2)(C), 412(b)(1)(C), and 431(b)(5) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)(A), 1612(b)(2)(A), 1613(b)(1)(C), 1622(b)(1)(C), and 1641(b)(5)) as amended by this Act are each amended by striking “<quotedText>section 243(h) of such Act</quotedText>” each place it appears and inserting “<quotedText>section 243(h) of such Act (as in effect immediately before the effective date of section 307 of division C of Public Law 104–208) or section 241(b)(3) of such Act (as amended by section 305(a) of division C of Public Law 104–208)</quotedText>”.</content> </section> <section> <num value="5563">SEC. 5563.</num> <heading>VETERANS EXCEPTION: APPLICATION OF MINIMUM ACTIVE DUTY SERVICE REQUIREMENT; EXTENSION TO UNREMARRIED SURVIVING SPOUSE; EXPANDED DEFINITION OF VETERAN.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Application of Minimum Active Duty Service Requirement</inline>.—</heading><content>Sections 402(a)(2)(C)(i), 402(b)(2)(C)(i), 403(b)(2)(A), and 412(b)(3)(A) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)(C)(i), 1612(b)(2)(C)(i), 1613(b)(2)(A), and 1622(b)(3)(A)) are each amended by inserting <page identifier="/us/stat/111/639">111 STAT. 639</page>“and who fulfills the minimum active-duty service requirements of section 5303A(d) of title 38, United States Code” after “alienage”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Exception Applicable to Unremarried Surviving Spouse</inline>.—</heading><content>Sections 402(a)(2)(C)(iii), 402(b)(2)(C)(iii), 403(b)(2)(C), and 412(b)(3)(C) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)(C)(iii), 1612(b)(2)(C)(iii), 1613(b)(2)(C), and 1622(b)(3)(O) are each amended by inserting before the period “or the unremarried surviving spouse of an individual described in clause (i) or (ii) who is deceased it the marriage fulfills the requirements of section 1304 of title 38, United States Code”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Expanded Definition of Veteran</inline>.—</heading><content>Sections 402(a)(2)(C)(i), 402(b)(2)(C)(i), 403(b)(2)(A), and 412(b)(3)(A) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)(C)(i), 1612(b)(2)(C)(i), 1613(b)(2)(A), and 1622(b)(3)(A)) are each amended by inserting “<quotedText>, 1101, or 1301, or as described in section 107</quotedText>” after “section 101”.</content> </subsection> </section> <section> <num value="5564">SEC. 5564.</num> <heading>NOTIFICATION CONCERNING ALIENS NOT LAWFULLY PRESENT: CORRECTION OF TERMINOLOGY.</heading> <content>Section 1631(e)(9) of the Social Security Act (42 U.S.C. 1383(e)(9)) and section 27 of the United States Housing Act of 1937, as added by section 404 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, are each amended<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437y">42 USC 1437y</ref>.</p></sidenote> by striking “<quotedText>unlawfully in the United States</quotedText>” each place it appears and inserting “<quotedText>not lawfully present in the United States</quotedText>”.</content> </section> <section> <num value="5565">SEC. 5565.</num> <heading>FREELY ASSOCIATED STATES: CONTRACTS AND LICENSES.</heading> <content>Sections 401(c)(2)(A) and 411(c)(2)(A) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1611(c)(2)(A) and 1621(c)(2)(A)) are each amended by inserting before the semicolon at the end “, or to a citizen of a freely associated state, if section 141 of the applicable compact of free association approved in Public Law 99–239 or 99–658 (or a successor provision) is in effect”.</content> </section> <section> <num value="5566">SEC. 5566.</num> <heading>CONGRESSIONAL STATEMENT REGARDING BENEFITS FOR HMONG AND OTHER HIGHLAND LAO VETERANS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>The Congress makes the following findings:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Hmong and other Highland Lao tribal peoples were recruited, armed, trained, and funded for military operations by the United States Department of Defense, Central Intelligence Agency, Department of State, and Agency for International Development to further United States national security interests during the Vietnam conflict.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Hmong and other Highland Lao tribal forces sacrificed their own lives and saved the lives of American military personnel by rescuing downed American pilots and aircrews and by engaging and successfully fighting North Vietnamese troops.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Thousands of Hmong and other Highland Lao veterans who fought in special guerilla units on behalf of the United States during the Vietnam conflict, along with their families, have been lawfully admitted to the United States in recent years.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104–193), the new national welfare reform law, restricts certain welfare benefits for noncitizens of the United States and the exceptions for noncitizen <page identifier="/us/stat/111/640">111 STAT. 640</page>veterans of the Armed Forces of the United States do not extend to Hmong veterans of the Vietnam conflict era, making Hmong veterans and their families receiving certain welfare benefits subject to restrictions despite their military service on behalf of the United States.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Congressional Statement</inline>.—</heading><content>It is the sense of the Congress that Hmong and other Highland Lao veterans who fought on behalf of the Armed Forces of the United States during the Vietnam conflict and have lawfully been admitted to the United States for permanent residence should be considered veterans for purposes of continuing certain welfare benefits consistent with the exceptions provided other noncitizen veterans under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.</content> </subsection> </section> </subchapter> <subchapter> <num value="B">Subchapter B—</num><heading>General Provisions</heading> <section> <num value="5571">SEC. 5571.</num> <heading>DETERMINATION OF TREATMENT OF BATTERED ALIENS AS QUALIFIED ALIENS; INCLUSION OF ALIEN CHILD OF BATTERED PARENT AS QUALIFIED ALIEN.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Determination of Status by Agency Providing Benefits</inline>.—</heading><content>Section 431 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1641) is amended in subsections (c)(1)(A) and (c)(2)(A) by striking “<quotedText>Attorney General, which opinion is not subject to review by any court)</quotedText>” each place it appears and inserting “<quotedText>agency providing such benefits)</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Guidance Issued by Attorney General</inline>.—</heading><content>Section 431(c) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1641(c)) is amended by adding at the end the following new undesignated paragraph: <quotedContent> <p class="indent0 fontsize10">“After consultation with the Secretaries of Health and Human Services, Agriculture, and Housing and Urban Development, the Commissioner of Social Security, and with the heads of such Federal agencies administering benefits as the Attorney General considers appropriate, the Attorney General shall issue guidance (in the Attorney General’s sole and unreviewable discretion) for purposes of this subsection and section 421(f), concerning the meaning of the terms ‘battery’ and ‘extreme cruelty’, and the standards and methods to be used for determining whether a substantial connection exists between battery or cruelty suffered and an individual’s need for benefits under a specific Federal, State, or local program.”.</p> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Inclusion of Alien Child of Battered Parent as Qualified Alien</inline>.—</heading><chapeau>Section 431(c) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1641(c)) is amend—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>at the end of paragraph (1)(B)(iv) by striking “<quotedText>or</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>at the end of paragraph (2)(B) by striking the period and inserting “<quotedText>; or</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by inserting after paragraph (2)(B) and before the last sentence of such subsection the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <chapeau>an alien child who—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>resides in the same household as a parent who has been battered or subjected to extreme cruelty in the United States by that parent’s spouse or by a member of the spouse’s family residing in the same household as the parent and the spouse consented or acquiesced to such battery or cruelty, but only if (in the opinion of the agency providing such benefits) there is a substantial connection <page identifier="/us/stat/111/641">111 STAT. 641</page>between such battery or cruelty and the need for the benefits to be provided; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>who meets the requirement of subparagraph (B) of paragraph (1).”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Inclusion of Alien Child of Battered Parent Under Special Rule for Attribution Of Income</inline>.—</heading><chapeau>Section 421(f)(1)(A) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1631(f)(1)(A)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>at the end of clause (i) by striking “<quotedText>or</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<quotedText>and the battery or cruelty described in clause (i) or (ii)</quotedText>” and inserting “<quotedText>or (iii) the alien is a child whose parent (who resides in the same household as the alien child) has been battered or subjected to extreme cruelty in the United States by that parent’s spouse, or by a member of the spouse’s family residing in the same household as the parent and the spouse consented to, or acquiesced in, such battery or cruelty, and the battery or cruelty described in clause (i), (ii), or (iii)</quotedText>”.</content></paragraph> </subsection> </section> <section> <num value="5572">SEC. 5572.</num> <heading>VERIFICATION OF ELIGIBILITY FOR BENEFITS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Regulations and Guidance</inline>.—</heading><chapeau>Section 432(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1642(a)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by inserting at the end of paragraph (1) the following: “Not later than 90 days after the date of the enactment of the Balanced Budget Act of 1997, the Attorney General of the United States, after consultation with the Secretary of Health and Human Services, shall issue interim verification guidance.”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding after paragraph (2) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>Not later than 90 days after the date of the enactment of the Balanced Budget Act of 1997, the Attorney General shall promulgate regulations which set forth the procedures by which a State or local government can verify whether an alien applying for a State or local public benefit is a qualified alien, a nonimmigrant under the Immigration and Nationality Act, or an alien paroled into the United States under section 212(d)(5) of the Immigration and Nationality Act for less than 1 year, for purposes of determining whether the alien is ineligible for benefits under section 411 of this Act.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Disclosure of Information for Verification</inline>.—</heading><content>Section 384(b) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (division C of Public Law 104–208) is amended<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1367">8 USC 1367</ref>.</p></sidenote> by adding after paragraph (4) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>The Attorney General is authorized to disclose information, to Federal, State, and local public and private agencies providing benefits, to be used solely in making determinations of eligibility for benefits pursuant to section 431(c) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.”.</content></paragraph> </quotedContent> </content></subsection> </section> <section> <num value="5573">SEC. 5573.</num> <heading>QUALIFYING QUARTERS: DISCLOSURE OF QUARTERS OF COVERAGE INFORMATION; CORRECTION TO ASSURE THAT CREDITING APPLIES TO ALL QUARTERS EARNED BY PARENTS BEFORE CHILD IS 18.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Disclosure of Quarters of Coverage Information</inline>.—</heading><content>Section 435 of the Personal Responsibility and Work Opportunity <page identifier="/us/stat/111/642">111 STAT. 642</page>Reconciliation Act of 1996 (8 U.S.C. 1645) is amended by adding at the end the following: “<quotedText>Notwithstanding section 6103 of the Internal Revenue Code of 1986, the Commissioner of Social Security is authorized to disclose quarters of coverage information concerning an alien and an alien’s spouse or parents to a government agency for the purposes of this title.</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Correction To Assure That Crediting Applies to All Quarters Earned by Parents Before Child is 18</inline>.—</heading><content>Section 435(1) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1645(1)) is amended by striking “<quotedText>while the alien was under age 18,</quotedText>” and inserting “<quotedText>before the date on which the alien attains age 18,</quotedText>”.</content> </subsection> </section> <section> <num value="5574">SEC. 5574.</num> <heading>STATUTORY CONSTRUCTION: BENEFIT ELIGIBILITY LIMITATIONS APPLICABLE ONLY WITH RESPECT TO ALIENS PRESENT IN THE UNITED STATES.</heading> <chapeau>Section 433 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1643) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by redesignating subsections (b) and (c) as subsections (c) and (d); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding after subsection (a) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Benefit Eligibility Limitations Applicable Only With Respect to Aliens Present in the United States</inline>.—</heading><chapeau>Notwithstanding any other provision of this title, the limitations on eligibility for benefits under this title shall not apply to eligibility for benefits of aliens who are not residing, or present, in the United States with respect to—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>wages, pensions, annuities, and other earned payments to which an alien is entitled resulting from employment by, or on behalf of, a Federal, State, or local government agency which was not prohibited during the period of such employment or service under section 274A or other applicable provision of the Immigration and Nationality Act; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>benefits under laws administered by the Secretary of Veterans Affairs.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> </section> </subchapter> <subchapter> <num value="C">Subchapter C—</num><heading>Miscellaneous Clerical and Technical Amendments; Effective Date</heading> <section> <num value="5581">SEC. 5581.</num> <heading>CORRECTING MISCELLANEOUS CLERICAL AND TECHNICAL ERRORS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Information Reporting Under Title IV of the Social Security Act</inline>.—</heading><content><sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote>Effective July 1, 1997, section 408 (42 U.S.C. 608), as amended by sections 5001(h)(1) and 5505(e) of this Act, is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">State Required to Provide Certain Information</inline>.—</heading><content>Each State to which a grant is made under section 403 shall, at least 4 times annually and upon request of the Immigration and Naturalization Service, furnish the Immigration and Naturalization Service with the name and address of, and other identifying information on, any individual who the State knows is not lawfully present in the United States.”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Miscellaneous Clerical and Technical Corrections</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Section 411(c)(3) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. <page identifier="/us/stat/111/643">111 STAT. 643</page>1621(c)(3)) is amended by striking “<quotedText>4001(c)</quotedText>” and inserting “<quotedText>401(c)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Section 422(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1632(a)) is amended by striking “<quotedText>benefits (as defined in section 412(c)),</quotedText>” and inserting “<quotedText>benefits,</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Section 412(b)(1)(C) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1622(b)(1)(C)) is amended by striking “<quotedText>withholding</quotedText>” and inserting “<quotedText>withholding</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>The subtitle heading for subtitle D of title IV of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 is amended to read as follows: <quotedContent> <subtitle> <num value="D">“Subtitle D—</num><heading>General Provisions”.</heading> </subtitle> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>The subtitle heading for subtitle F of title IV of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 is amended to read as follows: <quotedContent> <subtitle> <num value="F">“Subtitle F—</num><heading>Earned Income Credit Denied to Unauthorized Employees”.</heading> </subtitle> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>Section 431(c)(2)(B) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1641(C)(2)(B)) is amended by striking “<quotedText>clause (ii) of subparagraph (A)</quotedText>” and inserting “<quotedText>subparagraph (B) of paragraph (1)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <chapeau>Section 431(c)(1)(B) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1641(c)(1)(B)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in clause (iii) by striking “<quotedText>, or</quotedText>” and inserting “<quotedText>(as in effect prior to April 1, 1997),</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by adding after clause (iv) the following new clause: <quotedContent> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>cancellation of removal pursuant to section 240A(b)(2) of such Act;”.</content></clause> </quotedContent> </content></subparagraph> </paragraph> </subsection> </section> <section> <num value="5582">SEC. 5582.</num> <heading>EFFECTIVE DATE.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1367">8 USC 1367</ref>.</p></sidenote> <content>Except as otherwise provided, the amendments made by this chapter shall be effective as if included in the enactment of title IV of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.</content> </section> </subchapter> </chapter> <chapter> <num value="5">CHAPTER 5—</num><heading>CHILD PROTECTION</heading> <section> <num value="5591">SEC. 5591.</num> <heading>CONFORMING AND TECHNICAL AMENDMENTS RELATING TO CHILD PROTECTION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Methods Permitted for Conduct of Study of Child Welfare</inline>.—</heading><content>Section 429A(a) (42 U.S.C. 628b(a)) is amended by inserting “<quotedText>(directly, or by grant, contract, or interagency agreement)</quotedText>” after “conduct”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Redesignation of Paragraph</inline>.—</heading><chapeau>Section 471(a) (42 U.S.C. 671(a)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>and</quotedText>” at the end of paragraph (17);<page identifier="/us/stat/111/644">111 STAT. 644</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking the period at the end of paragraph (18) (as added by section 1808(a) of the Small Business Job Protection Act of 1996 (Public Law 104–188; 110 Stat. 1903)) and inserting “<quotedText>; and</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by redesignating paragraph (18) (as added by section 505(3) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104–193; 110 Stat. 2278)) as paragraph (19).</content></paragraph> </subsection> </section> <section> <num value="5592">SEC. 5592.</num> <heading>ADDITIONAL TECHNICAL AMENDMENTS RELATING TO CHILD PROTECTION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Part B Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Part B of title IV (42 U.S.C. 620–635) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s622">42 USC 622</ref>.</p></sidenote> <chapeau>in section 422(b)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by striking the period at the end of the paragraph (9) (as added by section 554(3) of the Improving America’s Schools Act of 1994 (Public Law 103–382; 108 Stat. 4057)) and inserting a semicolon;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by redesignating paragraph (10) as paragraph (11); and</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>by redesignating paragraph (9), as added by section 202(a)(3) of the Social Security Act Amendments of 1994 (Public Law 103–432, 108 Stat. 4453), as paragraph (10);</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s624">42 USC 624</ref>, 625.</p></sidenote> <content>in sections 424(b) and 425(a), by striking “<quotedText>422(b)(9)</quotedText>” each place it appears and inserting “<quotedText>422(b)(10)</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by transferring section 429A (as added by section 503 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104–193; 110 Stat. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s628b">42 USC 628b</ref>.</p></sidenote>2277)) to the end of subpart 1.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Clarification of conflicting amendments</inline>.—</heading><content>Section 204(a)(2) of the Social Security Act Amendments of 1994 (Public <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s622">42 USC 622</ref>.</p></sidenote>Law 103–432; 108 Stat. 4456) is amended by inserting “<quotedText>(as added by such section 202(a))</quotedText>” before “and inserting”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Part E Amendments</inline>.—</heading><content>Section 472(d) (42 U.S.C. 672(d)) is amended by striking “<quotedText>422(b)(9)</quotedText>” and inserting “<quotedText>422(b)(10)</quotedText>”.</content> </subsection> </section> <section> <num value="5593">SEC. 5593.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s622">42 USC 622 note</ref>.</p></sidenote> <heading>EFFECTIVE DATE.</heading> <content>The amendments made by this chapter shall take effect as if included in the enactment of title V of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104–193; 110 Stat. 2277).</content> </section> </chapter> <chapter> <num value="6">CHAPTER 6—</num><heading>CHILD CARE</heading> <section> <num value="5601">SEC. 5601.</num> <heading>CONFORMING AND TECHNICAL AMENDMENTS RELATING TO CHILD CARE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Funding</inline>.—</heading><chapeau>Section 418(a) (42 U.S.C. 618(a)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in paragraph (1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in the matter preceding subparagraph (A), by inserting “<quotedText>the greater of</quotedText>” after “equal to”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>in subparagraph (A)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by striking “<quotedText>the sum of</quotedText>”;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking “<quotedText>amounts expended</quotedText>” and inserting “<quotedText>expenditures</quotedText>”; and<page identifier="/us/stat/111/645">111 STAT. 645</page></content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>by striking “<quotedText>section—</quotedText>” and all that follows and inserting “<quotedText>subsections (g) and (i) of section 402 (as in effect before October 1, 1995); or</quotedText>”;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <chapeau>in subparagraph (B)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by striking “<quotedText>sections</quotedText>” and inserting “<quotedText>subsections</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking the semicolon at the end and inserting a period; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>in the matter following subparagraph (B), by striking “<quotedText>whichever is greater.</quotedText>”; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>in paragraph (2)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking subparagraph (B) and inserting the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Allotments to states</inline>.—</heading><content>The total amount available for payments to States under this paragraph, as determined under subparagraph (A), shall be allotted among the States based on the formula used for determining the amount of Federal payments to each State under section 403(n) (as in effect before October 1, 1995).”;</content></subparagraph> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking subparagraph (C) and inserting the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Federal matching of state expenditures exceeding historical expenditures</inline>.—</heading><content>The Secretary shall pay to each eligible State for a fiscal year an amount equal to the lesser of the State’s allotment under subparagraph (B) or the Federal medical assistance percentage for the State for the fiscal year (as defined in section 1905(b), as such section was in effect on September 30, 1995) of so much of the State’s expenditures for child care in that fiscal year as exceed the total amount of expenditures by the State (including expenditures from amounts made available from Federal funds) in fiscal year 1994 or 1995 (whichever is greater) for the programs described in paragraph (1)(A).”; and</content></subparagraph> </quotedContent> </content></subparagraph> <paragraph class="indent1 fontsize10"><num value="C">(C)</num> <chapeau>in subparagraph (D)(i)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by striking “<quotedText>amounts under any grant awarded</quotedText>” and inserting “<quotedText>any amounts allotted</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking “<quotedText>the grant is made</quotedText>” and inserting “<quotedText>such amounts are allotted</quotedText>”.</content></clause> </paragraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Data Used to Determine Historic State Expenditures</inline>.—</heading><content>Section 418(a) (42 U.S.C. 618(a)) is amended by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Data used to determine state and federal shares of expenditures</inline>.—</heading><content>In making the determinations concerning expenditures required under paragraphs (1) and (2)(C), the Secretary shall use information that was reported by the State on ACF Form 231 and available as of the applicable dates specified in clauses (i)(I), (ii), and (iii)(III) of section 403(a)(1)(D).”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Definition of State</inline>.—</heading><content>Section 418(d) (42 U.S.C. 618(d)) is amended by striking “<quotedText>or</quotedText>” and inserting “<quotedText>and</quotedText>”.</content> </subsection> </section> <section> <num value="5602">SEC. 5602.</num> <heading>ADDITIONAL CONFORMING AND TECHNICAL AMENDMENTS.</heading> <chapeau>The Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858 et seq.) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in section 658E(c)(2)(E)(ii), by striking “<quotedText>tribal organization</quotedText>”<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9858c">42 USC 9858c</ref>.</p></sidenote> and inserting “<quotedText>tribal organizations</quotedText>”;<page identifier="/us/stat/111/646">111 STAT. 646</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9858i">42 USC 9858i</ref></p></sidenote><chapeau>in section 658K(a)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <chapeau>in paragraph (1)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <chapeau>in subparagraph (B)—</chapeau> <subclause class="indent4 fontsize10"><num value="I">(I)</num> <content>by striking clause (iv) and inserting the following: <quotedContent> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>whether the head of the family unit is a single parent;”;</content></clause> </quotedContent> </content></subclause> <subclause class="indent4 fontsize10"><num value="II">(II)</num> <chapeau>in clause (v)—</chapeau> <item class="indent5 fontsize10"><num value="aa">(aa)</num> <content>in the matter preceding subclause (I), by striking “<quotedText>including the amount obtained from (and separately identified)—</quotedText>” and inserting “<quotedText>including—</quotedText>”; and</content></item> <item class="indent5 fontsize10"><num value="bb">(bb)</num> <content>by striking subclause (II) and inserting the following: <quotedContent> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <chapeau>cash or other assistance under—</chapeau> <item class="indent5 fontsize10"><num value="aa">“(aa)</num> <content>the temporary assistance for needy families program under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.); and</content></item> <item class="indent5 fontsize10"><num value="bb">“(bb)</num> <content>a State program for which State spending is counted toward the maintenance of effort requirement under section 409(a)(7) of the Social Security Act (42 U.S.C. 609(a)(7));”; and</content></item> </subclause> </quotedContent> </content></item> </subclause> <subclause class="indent4 fontsize10"><num value="III">(III)</num> <content>in clause (x), by striking “<quotedText>week</quotedText>” and inserting “<quotedText>month</quotedText>”; and</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking subparagraph (D) and inserting the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Use of samples</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Authority</inline>.—</heading><content>A State may comply with the requirement to collect the information described in subparagraph (B) through the use of disaggregated case record information on a sample of families selected through the use of scientifically acceptable sampling methods approved by the Secretary.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Sampling and other methods</inline>.—</heading><content>The Secretary shall provide the States with such case sampling plans and data collection procedures as the Secretary deems necessary to produce statistically valid samples of the information described in subparagraph (B). The Secretary may develop and implement procedures for verifying the quality of data submitted by the States.”; and</content></clause> </subparagraph> </quotedContent> </content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>in paragraph (2)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>in the heading, by striking “<quotedText><inline class="smallCaps">Biannual</inline></quotedText>” and inserting “<quotedText><inline class="smallCaps">Annual</inline></quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking “<quotedText>6</quotedText>” and inserting “<quotedText>12</quotedText>”;</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9858j">42 USC 9858j</ref>.</p></sidenote> <content>in section 658L, by striking “<quotedText>1997</quotedText>” and inserting “<quotedText>1998</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9858m">42 USC 9858m</ref>.</p></sidenote> <content>in section 6580(c)(6)(C), by striking “<quotedText>(A)</quotedText>” and inserting “<quotedText>(B)</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9858n">42 USC 9858n</ref>.</p></sidenote> <content>in section 658P(13), by striking “<quotedText>or</quotedText>” and inserting “<quotedText>and</quotedText>”.</content></paragraph> </section> <section> <num value="5603">SEC. 5603.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s618">42 USC 618 note</ref>.</p></sidenote> <heading>EFFECTIVE DATES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Except as provided in subsection (b), this chapter and the amendments made by this chapter shall take effect as if included in the enactment of title VI of the Personal <page identifier="/us/stat/111/647">111 STAT. 647</page>Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104–193; 110 Stat. 2278).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Exceptions</inline>.—</heading><content>The amendment made by section 5601(a)(2)(B) shall take effect on October 1, 1997.</content> </subsection> </section> </chapter> <chapter> <num value="7">CHAPTER 7—</num><heading>ERISA AMENDMENTS RELATING TO MEDICAL CHILD SUPPORT ORDERS</heading> <section> <num value="5611">SEC. 5611.</num> <heading>AMENDMENTS RELATING TO SECTION 303 OF THE PERSONAL RESPONSIBILITY AND WORK OPPORTUNITY RECONCILIATION ACT OF 1996.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Privacy Safeguards for Medical Child Support Orders</inline>.—</heading><content>Section 609(a)(3)(A) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1169(a)(3)(A)) is amended by adding at the end the following: “<quotedText>except that, to the extent provided in the order, the name and mailing address of an official of a State or a political subdivision thereof may be substituted for the mailing address of any such alternate recipient,</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Payment to State Official Treated as Satisfaction of Plan’s Obligation</inline>.—</heading><content>Section 609(a) of such Act (29 U.S.C. 1169(a)) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="9">“(9)</num> <heading><inline class="smallCaps">Payment to state official treated as satisfaction of plan’s obligation to make payment to alternate recipient</inline>.—</heading><content>Payment of benefits by a group health plan to an official of a State or a political subdivision thereof whose name and address have been substituted for the name and address of an alternate recipient in a qualified medical child support order, pursuant to paragraph (3)(A), shall be treated, for purposes of this title, as payment of benefits to the alternate recipient.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s1169">29 USC 1169 note</ref>.</p></sidenote> shall apply with respect to medical child support orders issued on or after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="5612">SEC. 5612.</num> <heading>AMENDMENT RELATING TO SECTION 381 OF THE PERSONAL RESPONSIBILITY AND WORK OPPORTUNITY RECONCILIATION ACT OF 1996.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Clarification of Effect of Administrative Notices</inline>.—</heading><content>Section 609(a)(2)(B) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1169(a)(2)(B)) is amended by adding at the end the following new sentence: “For purposes of this subparagraph, an administrative notice which is issued pursuant to an administrative process referred to in subclause (II) of the preceding sentence and which has the effect of an order described in clause (i) or (ii) of the preceding sentence shall be treated as such an order.”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s1169">29 USC 1169 note</ref>.</p></sidenote> shall be effective as if included in the enactment of section 381 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104–193; 110 Stat. 2257).</content> </subsection> </section> <section> <num value="5613">SEC. 5613.</num> <heading>AMENDMENTS RELATING TO SECTION 382 OF THE PERSONAL RESPONSIBILITY AND WORK OPPORTUNITY RECONCILIATION ACT OF 1996.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Elimination of Requirement That Orders Specify Affected Plans</inline>.—</heading><chapeau>Section 609(a)(3) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1169(a)(3)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subparagraph (B), by striking “<quotedText>by the plan</quotedText>”;<page identifier="/us/stat/111/648">111 STAT. 648</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding “<quotedText>and</quotedText>” at the end of subparagraph (B);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>in subparagraph (C), by striking “<quotedText>, and</quotedText>” and inserting a period; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>by striking subparagraph (D).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Clarification of Applicability of Orders</inline>.—</heading><content>Section 609(a)(1) of such Act (29 U.S.C. 1169(a)(1)) is amended by adding at the end the following new sentence: “A qualified medical child support order with respect to any participant or beneficiary shall be aeemed to apply to each group health plan which has received such order, from which the participant or beneficiary is eligible to receive benefits, and with respect to which the requirements of paragraph (4) are met.”</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s1169">29 USC 1169 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply with respect to medical child support orders issued on or after the date of the enactment of this Act.</content> </subsection> </section> </chapter> </subtitle> <subtitle> <num value="G">Subtitle G—</num><heading>Miscellaneous</heading> <section> <num value="5701">SEC. 5701.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t31/s3101">31 USC 3101</ref>.</p></sidenote> <heading>INCREASE IN PUBLIC DEBT LIMIT.</heading> <content>Subsection (b) of section 3101 of title 31, United States Code, is amended by striking the dollar amount contained therein and inserting “<quotedText>$5,950,000,000,000</quotedText>”.</content> </section> <section> <num value="5702">SEC. 5702.</num> <heading>AUTHORIZATION OF APPROPRIATIONS FOR ENFORCEMENT INITIATIVES RELATED TO THE EARNED INCOME TAX CREDIT.</heading> <chapeau>In addition to any other funds available therefor, there are authorized to be appropriated to the Secretary of the Treasury, for improved application of the earned income credit under section 32 of the Internal Revenue Code of 1986, not more than—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>$138,000,000 for fiscal year 1998;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>$143,000,000 for fiscal year 1999;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>$144,000,000 for fiscal year 2000;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>$145,000,000 for fiscal year 2001; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>$146,000,000 for fiscal year 2002.</content></paragraph> </section> </subtitle> <num value="VI">TITLE VI—</num><heading>EDUCATION AND RELATED PROVISIONS</heading> <subtitle> <num value="A">Subtitle A—</num><heading>Higher Education</heading> <section> <num value="6101">SEC. 6101.</num> <heading></heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Amendment</inline>.—</heading><content>Section 422 of the Higher Education Act of 1965 (20 U.S.C. 1072) is amended by adding after subsection (g) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Recall of Reserves; Limitations on Use of Reserve Funds and Assets</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Notwithstanding any other provision of law, the Secretary shall, except as otherwise provided in this subsection, recall $1,000,000,000 from the reserve funds held by guaranty agencies on September 1, 2002.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Deposit</inline>.—</heading><content>Funds recalled by the Secretary under this subsection shall be deposited in the Treasury.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Required share</inline>.—</heading><chapeau>The Secretary shall require each guaranty agency to return reserve funds under paragraph (1) <page identifier="/us/stat/111/649">111 STAT. 649</page>based on the agency’s required share of recalled reserve funds held by guaranty agencies as of September 30, 1996. For purposes of this paragraph, a guaranty agency’s required share of recalled reserve funds shall be determined as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>The Secretary shall compute each guaranty agency’s reserve ratio by dividing (i) the amount held in the agency’s reserve funds as of September 30, 1996 (but reflecting later accounting or auditing adjustments approved by the Secretary), by (ii) the original principal amount of all loans for which the agency has an outstanding insurance obligation as of such date, including amounts of outstanding loans transferred to the agency from another guaranty agency.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>If the reserve ratio of any guaranty agency as computed under subparagraph (A) exceeds 2.0 percent, the agency’s required share shall include so much of the amounts held in the agency’s reserve funds as exceed a reserve ratio of 2.0 percent.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <chapeau>If any additional amount is required to be recalled under paragraph (1) (after deducting the total of the required shares calculated under subparagraph (B)), such additional amount shall be obtained by imposing on each guaranty agency an equal percentage reduction in the amount of the agency’s reserve funds remaining after deduction of the amount recalled under subparagraph (B), except that such percentage reduction under this subparagraph shall not result in the agency’s reserve ratio being reduced below 0.58 percent. The equal percentage reduction shall be the percentage obtained by dividing—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the additional amount required to be recalled (after deducting the total of the required shares calculated under subparagraph (B)), by</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the total amount of all such agencies’ reserve funds remaining (after deduction of the required shares calculated under such subparagraph).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <chapeau>If any additional amount is required to be recalled under paragraph (1) (after deducting the total of the required shares calculated under subparagraphs (B) and (C)), such additional amount shall be obtained by imposing on each guaranty agency with a reserve ratio (after deducting the required snares calculated under such subparagraphs) in excess of 0.58 percent an equal percentage reduction in the amount of the agency’s reserve funds remaining (after such deduction) that exceed a reserve ratio of 0.58 percent. The equal percentage reduction shall be the percentage obtained by dividing—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the additional amount to be recalled under paragraph (1) (after deducting the amount recalled under subparagraphs (B) and (C)), by</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the total amount of all such agencies’ reserve funds remaining (after deduction of the required shares calculated under such subparagraphs) that exceed a reserve ratio of 0.58 percent.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Restricted accounts required</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Within 90 days after the beginning of each of the fiscal years 1998 through 2002, each guaranty agency shall transfer a portion of the agency’s required <page identifier="/us/stat/111/650">111 STAT. 650</page>share determined under paragraph (3) to a restricted account established by the agency that is of a type selected by the agency with the approval of the Secretary. Funds transferred to such restricted accounts shall be invested in obligations issued or guaranteed by the United States or in other similarly low-risk securities.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Requirement</inline>.—</heading><content>A guaranty agency shall not use the funds in such a restricted account for any purpose without the express written permission of the Secretary, except that a guaranty agency may use the earnings from such restricted account for default reduction activities.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Installments</inline>.—</heading><chapeau>In each of fiscal years 1998 through 2002, each guaranty agency shall transfer the agency’s required share to such restricted account in 5 equal annual installments, except that—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>a guaranty agency that has a reserve ratio (as computed under subparagraph (3)(A)) equal to or less than 1.10 percent may transfer the agency’s required share to such account in 4 equal installments beginning in fiscal year 1999; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>a guaranty agency may transfer such required share to such account in accordance with such other payment schedules as are approved by the Secretary.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Shortage</inline>.—</heading><content>If, on September 1, 2002, the total amount in the restricted accounts described in paragraph (4) is less than the amount the Secretary is required to recall under paragraph (1), the Secretary shall require the return of the amount of the shortage from other reserve funds held by guaranty agencies under procedures established by the Secretary. The Secretary shall first attempt to obtain the amount of such shortage from each guaranty agency that failed to transfer the agency’s required share to the agency’s restricted account in accordance with paragraph (4).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Enforcement</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary may take such reasonable measures, and require such information, as may be necessary to ensure that guaranty agencies comply with the requirements of this subsection.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Prohibition</inline>.—</heading><content>If the Secretary determines that a guaranty agency has failed to transfer to a restricted account any portion of the agency’s required share under this subsection, the agency may not receive any other funds under this part until the Secretary determines that the agency has so transferred the agency’s required share.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Waiver</inline>.—</heading><content>The Secretary may waive the requirements of subparagraph (B) for a guaranty agency described in such subparagraph if the Secretary determines that there are extenuating circumstances beyond the control of the agency that justify such waiver.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Limitation</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Restriction on other authority</inline>.—</heading><content>The Secretary shall not have any authority to direct a guaranty agency to return reserve funds under subsection (g)(1)(A) during the period from the date of enactment of the Balanced Budget Act of 1997 through September 30, 2002.<page identifier="/us/stat/111/651">111 STAT. 651</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Use of termination collections</inline>.—</heading><chapeau>Any reserve funds directed by the Secretary to be returned to the Secretary under subsection (g)(1)(B) during such period that do not exceed a guaranty agency’s required share of recalled reserve funds under paragraph (3)—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>shall be used to satisfy the agency’s required share of recalled reserve funds; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>shall be deposited in the restricted account established by the agency under paragraph (4), without regard to whether such funds exceed the next installment required under such paragraph.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Use of sanctions collections</inline>.—</heading><chapeau>Any reserve funds directed by the Secretary to be returned to the Secretary under subsection (g)(1)(C) during such period that do not exceed a guaranty agency’s next installment under paragraph (4)—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>shall be used to satisfy the agency’s next installment; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>shall be deposited in the restricted account established by the agency under paragraph (4).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Balance available to secretary</inline>.—</heading><content>Any reserve funds directed by the Secretary to be returned to the Secretary under subparagraph (B) or (C) of subsection (g)(1) that remain after satisfaction of the requirements of subparagraphs (B) and (C) of this paragraph shall be deposited in the Treasury.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For the purposes of this subsection:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Default reduction activities</inline>.—</heading><chapeau>The term ‘default reduction activities’ means activities to reduce student loan defaults that improve, strengthen, and expand default prevention activities, such as—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>establishing a program of partial loan cancellation to reward disadvantaged borrowers for good repayment histories with their lenders;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>establishing a financial and debt management counseling program for high-risk borrowers that provides long-term training (beginning prior to the first disbursement of the borrower’s first student loan and continuing through the completion of the borrower’s program of education or training) in budgeting and other aspects of financial management, including debt management;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>establishing a program of placement counseling to assist high-risk borrowers in identifying employment or additional training opportunities; and</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>developing public service announcements that would detail consequences of student loan default and provide information regarding a toll-free telephone number established by the guaranty agency for use by borrowers seeking assistance in avoiding default.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Reserve funds</inline>.—</heading><chapeau>The term ‘reserve funds’ when used with respect to a guaranty agency—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>includes any reserve funds in cash or liquid assets held by the guaranty agency, or held by, or under the control of, any other entity; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>does not include buildings, equipment, or other nonliquid assets.”.<page identifier="/us/stat/111/652">111 STAT. 652</page></content></clause> </subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><chapeau>Section 428(C)(9)(A) of the Higher Education Act of 1965 (20 U.S.C. 1078(c)(9)(A)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in the first sentence, by striking “<quotedText>for the fiscal year of the agency that begins in 1993</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking the third sentence.</content></paragraph> </subsection> </section> <section> <num value="6102">SEC. 6102.</num> <heading>REPEAL OF DIRECT LOAN ORIGINATION FEES TO INSTITUTIONS OF HIGHER EDUCATION.</heading> <chapeau>Section 452 of the Higher Education Act of 1965 (20 U.S.C. 1087b) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking subsection (b); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by redesignating subsections (c) and (d) as subsections (b) and (c), respectively.</content></paragraph> </section> <section> <num value="6103">SEC. 6103.</num> <heading>FUNDS FOR ADMINISTRATIVE EXPENSES.</heading> <content>Subsection (a) of section 458 of the Higher Education Act of 1965 (20 U.S.C. 1087h(a)) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Administrative Expenses</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Each fiscal year, there shall be available to the Secretary from funds not otherwise appropriated, funds to be obligated for—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>administrative costs under this part and part B, including the costs of the direct student loan programs under this part, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>administrative cost allowances payable to guaranty agencies under part B and calculated in accordance with paragraph (2),</content></subparagraph> <continuation class="indent0 fontsize10">not to exceed (from such funds not otherwise appropriated) $532,000,000 in fiscal year 1998, $610,000,000 in fiscal year 1999, $705,000,000 in fiscal year 2000, $750,000,000 in fiscal year 2001, and $750,000,000 in fiscal year 2002. Administrative cost allowances under subparagraph (B) of this paragraph shall be paid quarterly and used in accordance with section 428(f). The Secretary may carry over funds available under this section to a subsequent fiscal year.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Calculation basis</inline>.—</heading><chapeau>Administrative cost allowances Sable to guaranty agencies under paragraph (1)(B) shall be calculated on the basis of 0.85 percent of the total principal amount of loans upon which insurance was issued in excess of $8,200,000,000 in fiscal year 1997 and upon which insurance is issued on or after October 1, 1997, except that such allowances shall not exceed—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>$170,000,000 for each of the fiscal years 1998 and 1999; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>$150,000,000 for each of the fiscal years 2000, 2001, and 2002”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></section> <section> <num value="6104">SEC. 6104.</num> <heading>EXTENSION OF STUDENT AID PROGRAMS.</heading> <chapeau>Title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1074">20 USC 1074</ref>.</p></sidenote> <content>in section 424(a), by striking “<quotedText>1998.</quotedText>” and “2002.” and inserting “<quotedText>2002.</quotedText>” and “2006.”, respectively;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1078">20 USC 1078</ref>.</p></sidenote> <content>in section 428(a)(5), by striking “<quotedText>1998,</quotedText>” and “2002.” and inserting “<quotedText>2002,</quotedText>” and “2006.”, respectively; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1078–3">20 USC 1078–3</ref>.</p></sidenote> <content>in section 428C(e), by striking “<quotedText>1998.</quotedText>” and inserting “<quotedText>2002</quotedText>”.<page identifier="/us/stat/111/653">111 STAT. 653</page></content></paragraph> </section> </subtitle> <subtitle> <num value="B">Subtitle B—</num><heading>Repeal of Smith-Hughes Vocational Education Act</heading> <section> <num value="6201">SEC. 6201.</num> <heading>REPEAL OF SMITH-HUGHES VOCATIONAL EDUCATION ACT.</heading> <content>The Act of February 23, 1917 (39 Stat. 929, chapter 114; 20 U.S.C. 11 et seq.) (commonly known as the “Smith-Hughes Vocational Education Act”), is repealed.</content> </section> </subtitle> <num value="VII">TITLE VII—</num><heading>CIVIL SERVICE RETIREMENT AND RELATED PROVISIONS</heading> <section> <num value="7001">SEC. 7001.</num> <heading>INCREASED CONTRIBUTIONS TO FEDERAL CIVILIAN RETIREMENT SYSTEMS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Civil Service Retirement System</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Agency contributions</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s8334">5 USC 8334 note</ref>.</p></sidenote> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Notwithstanding section 8334 (a)(1) or (k)(1) of title 5, United States Code, during the period beginning on October 1, 1997, through September 30, 2002, each employing agency (other than the United States Postal Service or the Metropolitan Washington Airports Authority) shall contribute—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>8.51 percent of the basic pay of an employee;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>9.01 percent of the basic pay of a congressional employee, a law enforcement officer, a member of the Capitol police, or a firefighter; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>9.51 percent of the basic pay of a Member of Congress, a Court of Federal Claims judge, a United States magistrate, a judge of the United States Court of Appeals for the Armed Forces, or a bankruptcy judge;</content></clause> <continuation class="indent0 fontsize10">in lieu of the agency contributions otherwise required under section 8334(a)(1) of title 5, United States Code.</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Application</inline>.—</heading><content>For purposes of subparagraph (A) and notwithstanding the amendments made by paragraph (3), during the period beginning on January 1, 1999 through December 31, 2002, with respect to the United States Postal Service and the Metropolitan Washington Airports Authority, the agency contribution shall be determined as though those amendments had not been made.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">No reduction in agency contributions by the postal service</inline>.—</heading><chapeau><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s8334">5 USC 8334 note</ref>.</p></sidenote>Contributions by the Treasury of the United States or the United States Postal Service under section 8348 (g), (h), or (m) of title 5, United States Code—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>shall not be reduced as a result of the amendments made under paragraph (3) of this subsection; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>shall be computed as though such amendments had not been enacted.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Individual deductions, withholdings, and deposits</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">Deductions</inline>.—</heading><content>The first sentence of section 8334(a)(1) of title 5, United States Code, is amended to read as follows: “The employing agency shall deduct and withhold from the basic pay of an employee, Member, <page identifier="/us/stat/111/654">111 STAT. 654</page>Congressional employee, law enforcement officer, firefighter, bankruptcy judge, judge of the United States Court of Appeals for the Armed Forces, United States magistrate, Court of Federal Claims judge, or member of the Capitol Police, as the case may be, the percentage of basic pay applicable under subsection (c).”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Deposits</inline>.—</heading><chapeau>The table under section 8334(c) of title 5, United States Code, is amended—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>in the matter relating to an employee by striking: <quotedContent> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <tbody> <tr> <td style="text-align:left" leaders="yes">“7</td> <td style="text-align:left">After December 31, 1969.”;</td> </tr> </tbody> </table> <continuation class="indent0 fontsize10">and inserting the following:</continuation> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <tbody> <tr> <td style="text-align:left" leaders="yes">“7</td> <td style="text-align:left">January 1, 1970, to December 31, 1998.</td> </tr> <tr> <td style="text-align:left" leaders="yes">7.25</td> <td style="text-align:left">January 1, 1999, to December 31, 1999.</td> </tr> <tr> <td style="text-align:left" leaders="yes">7.4</td> <td style="text-align:left">January 1, 2000, to December 31, 2000.</td> </tr> <tr> <td style="text-align:left" leaders="yes">7.5</td> <td style="text-align:left">January 1, 2001, to December 31, 2002.</td> </tr> <tr> <td style="text-align:left" leaders="yes">7</td> <td style="text-align:left">After December 31, 2002.”;</td> </tr> </tbody> </table> </quotedContent> </content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>in the matter relating to a Member or employee for congressional employee service by striking: <quotedContent> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <tbody> <tr> <td style="text-align:left" leaders="yes">“7½</td> <td style="text-align:left">After December 31, 1969.”;</td> </tr> </tbody> </table> <continuation class="indent0 fontsize10">and inserting the following:</continuation> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <tbody> <tr> <td style="text-align:left" leaders="yes">“7.5</td> <td style="text-align:left">January 1, 1970, to December 31, 1998.</td> </tr> <tr> <td style="text-align:left" leaders="yes">7.75</td> <td style="text-align:left">January 1, 1999, to December 31, 1999.</td> </tr> <tr> <td style="text-align:left" leaders="yes">7.9</td> <td style="text-align:left">January 1, 2000, to December 31, 2000.</td> </tr> <tr> <td style="text-align:left" leaders="yes">8</td> <td style="text-align:left">January 1, 2001, to December 31, 2002.</td> </tr> <tr> <td style="text-align:left" leaders="yes">7.5</td> <td style="text-align:left">After December 31, 2002.”;</td> </tr> </tbody> </table> </quotedContent> </content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>in the matter relating to a Member for Member service by striking: <quotedContent> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <tbody> <tr> <td style="text-align:left" leaders="yes">“8</td> <td style="text-align:left">After December 31, 1969.”;</td> </tr> </tbody> </table> <continuation class="indent0 fontsize10">and inserting the following:</continuation> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <tbody> <tr> <td style="text-align:left" leaders="yes">“8</td> <td style="text-align:left">January 1, 1970, to December 31, 1998.</td> </tr> <tr> <td style="text-align:left" leaders="yes">8.25</td> <td style="text-align:left">January 1, 1999, to December 31, 1999.</td> </tr> <tr> <td style="text-align:left" leaders="yes">8.4</td> <td style="text-align:left">January 1, 2000, to December 31, 2000.</td> </tr> </tbody> </table> <page identifier="/us/stat/111/655">111 STAT. 655</page> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <tbody> <tr> <td style="text-align:left" leaders="yes">8.5</td> <td style="text-align:left">January 1, 2001, to December 31, 2002.</td> </tr> <tr> <td style="text-align:left" leaders="yes">8</td> <td style="text-align:left">After December 31, 2002.”;</td> </tr> </tbody> </table> </quotedContent> </content></clause> <clause class="indent3 fontsize10"><num value="iv">(iv)</num> <content>in the matter relating to a law enforcement officer for law enforcement service and firefighter for firefighter service by striking: <quotedContent> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <tbody> <tr> <td style="text-align:left" leaders="yes">“7½</td> <td style="text-align:left">After December 31, 1974.”;</td> </tr> </tbody> </table> <continuation class="indent0 fontsize10">and inserting the following:</continuation> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <tbody> <tr> <td style="text-align:left" leaders="yes">“7.5</td> <td style="text-align:left">January 1, 1975, to December 31, 1998.</td> </tr> <tr> <td style="text-align:left" leaders="yes">7.75</td> <td style="text-align:left">January 1, 1999, to December 31, 1999.</td> </tr> <tr> <td style="text-align:left" leaders="yes">7.9</td> <td style="text-align:left">January 1, 2000, to December 31, 2000.</td> </tr> <tr> <td style="text-align:left" leaders="yes">8</td> <td style="text-align:left">January 1, 2001, to December 31, 2002.</td> </tr> <tr> <td style="text-align:left" leaders="yes">7.5</td> <td style="text-align:left">After December 31, 2002.”;</td> </tr> </tbody> </table> </quotedContent> </content></clause> <clause class="indent3 fontsize10"><num value="v">(v)</num> <content>in the matter relating to a bankruptcy judge by striking: <quotedContent> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <tbody> <tr> <td style="text-align:left" leaders="yes">“8</td> <td style="text-align:left">After December 31, 1983.”;</td> </tr> </tbody> </table> <continuation class="indent0 fontsize10">and inserting the following:</continuation> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <tbody> <tr> <td style="text-align:left" leaders="yes">“8</td> <td style="text-align:left">January 1, 1984, to December 31, 1998.</td> </tr> <tr> <td style="text-align:left" leaders="yes">8.25</td> <td style="text-align:left">January 1, 1999, to December 31, 1999.</td> </tr> <tr> <td style="text-align:left" leaders="yes">8.4</td> <td style="text-align:left">January 1, 2000, to December 31, 2000.</td> </tr> <tr> <td style="text-align:left" leaders="yes">8.5</td> <td style="text-align:left">January 1, 2001, to December 31, 2002.</td> </tr> <tr> <td style="text-align:left" leaders="yes">8</td> <td style="text-align:left">After December 31, 2002.”;</td> </tr> </tbody> </table> </quotedContent> </content></clause> <clause class="indent3 fontsize10"><num value="vi">(vi)</num> <content>in the matter relating to a judge of the United States Court of Appeals for the Armed Forces for service as a judge of that court by striking: <quotedContent> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <tbody> <tr> <td style="text-align:left" leaders="yes">“8</td> <td style="text-align:left">On and after the date of the enactment of the Department of Defense Authorization Act, 1984.”;</td> </tr> </tbody> </table> <continuation class="indent0 fontsize10">and inserting t h e following:</continuation> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <tbody> <tr> <td style="text-align:left" leaders="yes">“8</td> <td style="text-align:left">The date of enactment of the Department of Defense Authorization Act, 1984, to December 31, 1998.</td> </tr> <tr> <td style="text-align:left" leaders="yes">8.25</td> <td style="text-align:left">January 1, 1999, to December 31, 1999.</td> </tr> <tr> <td style="text-align:left" leaders="yes">8.4</td> <td style="text-align:left">January 1, 2000, to December 31, 2000.</td> </tr> </tbody> </table> <page identifier="/us/stat/111/656">111 STAT. 656</page> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <tbody> <tr> <td style="text-align:left" leaders="yes">8.5</td> <td style="text-align:left">January 1, 2001, to December 31, 2002.</td> </tr> <tr> <td style="text-align:left" leaders="yes">8</td> <td style="text-align:left">After December 31, 2002.”;</td> </tr> </tbody> </table> </quotedContent> </content></clause> <clause class="indent3 fontsize10"><num value="vii">(vii)</num> <content>in the matter relating to a United States magistrate by striking: <quotedContent> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <tbody> <tr> <td style="text-align:left" leaders="yes">“8</td> <td style="text-align:left">After September 30, 1987.”;</td> </tr> </tbody> </table> <continuation class="indent0 fontsize10">and inserting the following:</continuation> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <tbody> <tr> <td style="text-align:left" leaders="yes">“8</td> <td style="text-align:left">October 1, 1987, to December 31, 1998.</td> </tr> <tr> <td style="text-align:left" leaders="yes">8.25</td> <td style="text-align:left">January 1, 1999, to December 31, 1999.</td> </tr> <tr> <td style="text-align:left" leaders="yes">8.4</td> <td style="text-align:left">January 1, 2000, to December 31, 2000.</td> </tr> <tr> <td style="text-align:left" leaders="yes">8.5</td> <td style="text-align:left">January 1, 2001, to December 31, 2002.</td> </tr> <tr> <td style="text-align:left" leaders="yes">8</td> <td style="text-align:left">After December 31, 2002.”;</td> </tr> </tbody> </table> </quotedContent> </content></clause> <clause class="indent3 fontsize10"><num value="viii">(viii)</num> <content>in the matter relating to a Court of Federal Claims judge by striking: <quotedContent> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <tbody> <tr> <td style="text-align:left" leaders="yes">“8</td> <td style="text-align:left">After September 30, 1988.”;</td> </tr> </tbody> </table> <continuation class="indent0 fontsize10">and inserting the following:</continuation> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <tbody> <tr> <td style="text-align:left" leaders="yes">“8</td> <td style="text-align:left">October 1, 1988, to December 31, 1998</td> </tr> <tr> <td style="text-align:left" leaders="yes">8.25</td> <td style="text-align:left">January 1, 1999, to December 31, 1999.</td> </tr> <tr> <td style="text-align:left" leaders="yes">8.4</td> <td style="text-align:left">January 1, 2000, to December 31, 2000.</td> </tr> <tr> <td style="text-align:left" leaders="yes">8.5</td> <td style="text-align:left">January 1, 2001, to December 31, 2002.</td> </tr> <tr> <td style="text-align:left" leaders="yes">8</td> <td style="text-align:left">After December 31, 2002.”;</td> </tr> </tbody> </table> </quotedContent> </content></clause> <continuation class="indent0 fontsize10">and</continuation> <clause class="indent3 fontsize10"><num value="ix">(ix)</num> <content>by inserting after the matter relating to a Court of Federal Claims judge the following: <quotedContent> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <tbody> <tr> <td style="text-align:left" leaders="yes">“Member of the Capitol Police</td> <td style="text-align:left" leaders="yes">2.5</td> <td style="text-align:left">August 1, 1920, to June 30, 1926.</td> </tr> <tr> <td style="text-align:left" /> <td style="text-align:left" leaders="yes">3.6</td> <td style="text-align:left">July 1, 1926, to June 30, 1942.</td> </tr> <tr> <td style="text-align:left" /> <td style="text-align:left" leaders="yes">5</td> <td style="text-align:left">July 1, 1942, to June 30, 1948.</td> </tr> <tr> <td style="text-align:left" /> <td style="text-align:left" leaders="yes">6</td> <td style="text-align:left">July 1, 1948, to October 31, 1956.</td> </tr> <tr> <td style="text-align:left" /> <td style="text-align:left" leaders="yes">6.5</td> <td style="text-align:left">November 1, 1956, to December 31, 1969.</td> </tr> <tr> <td style="text-align:left" /> <td style="text-align:left" leaders="yes">7.5</td> <td style="text-align:left">January 1, 1970, to December 31, 1998.</td> </tr> <tr> <td style="text-align:left" /> <td style="text-align:left" leaders="yes">7.75</td> <td style="text-align:left">January 1, 1999, to December 31, 1999.</td> </tr> <tr> <td style="text-align:left" /> <td style="text-align:left" leaders="yes">7.9</td> <td style="text-align:left">January 1, 2000, to December 31, 2000.</td> </tr> <tr> <td style="text-align:left" /> <td style="text-align:left" leaders="yes">8</td> <td style="text-align:left">January 1, 2001, to December 31, 2002.</td> </tr> </tbody> </table> <page identifier="/us/stat/111/657">111 STAT. 657</page> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <tbody> <tr> <td style="text-align:left" /> <td style="text-align:left" leaders="yes">7.5</td> <td style="text-align:left">After December 31, 2002.”.</td> </tr> </tbody> </table> </quotedContent> </content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Other service</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">Military service</inline>.—</heading><chapeau>Section 8334(j) of title 5, United States Code, is amended—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>in paragraph (1)(A) by inserting “<quotedText>and subject to paragraph (5),</quotedText>” after “Except as provided in subparagraph (B),”, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>Effective with respect to any period of military service<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> after December 31, 1998, the percentage of basic pay under section 204 of title 37 payable under paragraph (1) shall be equal to the same percentage as would be applicable under subsection (c) of this section for that same period for service as an employee, subject to paragraph (1)(B).”.</content></paragraph> </quotedContent> </content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Volunteer service</inline>.—</heading><chapeau>Section 8334(1) of title 5, United States Code, is amended—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>in paragraph (1) by adding at the end the following: “<quotedText>This paragraph shall be subject to paragraph (4).</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>Effective with respect to any period of service after December<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> 31, 1998, the percentage of the readjustment allowance or stipend (as the case may be) payable under paragraph (1) shall be equal to the same percentage as would be applicable under subsection (c) of this section for the same period for service as an employee.”.</content></paragraph> </quotedContent> </content></clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Federal Employees’ Retirement System</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Individual deductions and withholdings</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 8422(a) of title 5, United States Code, is amended by striking paragraph (2) and inserting the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <chapeau>The percentage to be deducted and withheld from basic pay for any pay period shall be equal to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the applicable percentage under paragraph (3), minus</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the percentage then in effect under section 3101(a) of the Internal Revenue Code of 1986 (relating to rate of tax for old-age, survivors, and disability insurance).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>The applicable percentage under this paragraph for civilian service shall be as follows: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <tbody> <tr> <td style="text-align:left" leaders="yes">“Employee</td> <td style="text-align:left" leaders="yes">7</td> <td style="text-align:left">January 1, 1987, to December 31, 1998.</td> </tr> <tr> <td style="text-align:left" /> <td style="text-align:left" leaders="yes">7.25</td> <td style="text-align:left">January 1, 1999, to December 31, 1999.</td> </tr> <tr> <td style="text-align:left" /> <td style="text-align:left" leaders="yes">7.4</td> <td style="text-align:left">January 1, 2000, to December 31, 2000.</td> </tr> <tr> <td style="text-align:left" /> <td style="text-align:left" leaders="yes">7.5</td> <td style="text-align:left">January 1, 2001, to December 31, 2002.</td> </tr> <tr> <td style="text-align:left" /> <td style="text-align:left" leaders="yes">7</td> <td style="text-align:left">After December 31, 2002.</td> </tr> <tr> <td style="text-align:left" leaders="yes">Congressional employee</td> <td style="text-align:left" leaders="yes">7.5</td> <td style="text-align:left">January 1, 1987, to December 31, 1998.</td> </tr> <tr> <td style="text-align:left" /> <td style="text-align:left" leaders="yes">7.75</td> <td style="text-align:left">January 1, 1999, to December 31, 1999.</td> </tr> <tr> <td style="text-align:left" /> <td style="text-align:left" leaders="yes">7.9</td> <td style="text-align:left">January 1, 2000, to December 31, 2000.</td> </tr> <tr> <td style="text-align:left" /> <td style="text-align:left" leaders="yes">8</td> <td style="text-align:left">January 1, 2001, to December 31, 2002.</td> </tr> </tbody> </table> <page identifier="/us/stat/111/658">111 STAT. 658</page> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <tbody> <tr> <td style="text-align:left" /> <td style="text-align:left" leaders="yes">7.5</td> <td style="text-align:left">After December 31, 2002.</td> </tr> <tr> <td style="text-align:left" leaders="yes">Member</td> <td style="text-align:left" leaders="yes">7.5</td> <td style="text-align:left">January 1, 1987, to December 31, 1998.</td> </tr> <tr> <td style="text-align:left" /> <td style="text-align:left" leaders="yes">7.75</td> <td style="text-align:left">January 1, 1999, to December 31, 1999.</td> </tr> <tr> <td style="text-align:left" /> <td style="text-align:left" leaders="yes">7.9</td> <td style="text-align:left">January 1, 2000, to December 31, 2000.</td> </tr> <tr> <td style="text-align:left" /> <td style="text-align:left" leaders="yes">8</td> <td style="text-align:left">January 1, 2001, to December 31, 2002.</td> </tr> <tr> <td style="text-align:left" /> <td style="text-align:left" leaders="yes">7.5</td> <td style="text-align:left">After December 31, 2002.</td> </tr> <tr> <td style="text-align:left" leaders="yes">Law enforcement officer, firefighter, member of the Capitol Police, or air traffic controller.</td> <td style="text-align:left" leaders="yes">7.5</td> <td style="text-align:left">January 1, 1987, to December 31, 1998.</td> </tr> <tr> <td style="text-align:left" /> <td style="text-align:left" leaders="yes">7.75</td> <td style="text-align:left">January 1, 1999, to December 31, 1999.</td> </tr> <tr> <td style="text-align:left" /> <td style="text-align:left" leaders="yes">7.9</td> <td style="text-align:left">January 1, 2000, to December 31, 2000.</td> </tr> <tr> <td style="text-align:left" /> <td style="text-align:left" leaders="yes">8</td> <td style="text-align:left">January 1, 2001, to December 31, 2002.</td> </tr> <tr> <td style="text-align:left" /> <td style="text-align:left" leaders="yes">7.5</td> <td style="text-align:left">After December 31, 2002.”.</td> </tr> </tbody> </table> </content></paragraph> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Military service</inline>.—</heading><chapeau>Section 8422(e) of title 5, United States Code, is amended—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>in paragraph (1)(A) by inserting “<quotedText>and subject to paragraph (6),</quotedText>” after “Except as provided in subparagraph (B),”, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <chapeau>The percentage of basic pay under section 204 of title 37 payable under paragraph (1), with respect to any period of military service performed during—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>January 1, 1999, through December 31, 1999, shall be 3.25 percent;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>January 1, 2000, through December 31, 2000, shall be 3.4 percent; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>January 1, 2001, through December 31, 2002, shall be 3.5 percent.”.</content></subparagraph> </paragraph> </quotedContent> </content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <heading><inline class="smallCaps">Volunteer service</inline>.—</heading><chapeau>Section 8422(f) of title 5, United States Code, is amended—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>in paragraph (1) by adding at the end the following: “<quotedText>This paragraph shall be subject to paragraph (4).</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <chapeau>The percentage of the readjustment allowance or stipend (as the case may be) payable under paragraph (1), with respect to any period of volunteer service performed during—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>January 1, 1999, through December 31, 1999, shall be 3.25 percent;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>January 1, 2000, through December 31, 2000, shall be 3.4 percent; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>January 1, 2001, through December 31, 2002, shall be 3.5 percent.”.</content></subparagraph> </paragraph> </quotedContent> </content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s8422">5 USC 8422 note</ref>.</p></sidenote> <heading><inline class="smallCaps">No reduction in agency contributions</inline>.—</heading><content>Contributions under section 8423 (a) and (b) of title 5, United States Code, shall not be reduced as a result of the amendments made under paragraph (1) of this subsection.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Central Intelligence Agency Retirement and Disability System</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t50/s2021">50 USC 2021 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Agency contributions</inline>.—</heading><content>Notwithstanding section 211(a)(2) of the Central Intelligence Agency Retirement Act (50 U.S.C. 2021(a)(2)), during the period beginning on October 1, 1997, through September 30, 2002, the Central Intelligence Agency shall contribute 8.51 percent of the basic pay of an <page identifier="/us/stat/111/659">111 STAT. 659</page>employee participating in the Central Intelligence Agency Retirement and Disability System in lieu of the agency contribution otherwise required under section 211(a)(2) of such Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Individual deductions, withholdings, and deposits</inline>.—</heading><content>Notwithstanding section 211(a)(1) of the Central Intelligence Agency Retirement Act (50 U.S.C. 2021(a)(1)) beginning on January 1, 1999, through December 31, 2002, the percentage deducted and withheld from the basic pay of an employee participating in the Central Intelligence Agency Retirement and Disability System shall be as follows: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <tbody> <tr> <td style="text-align:left" leaders="yes">7.25</td> <td style="text-align:left">January 1, 1999, to December 31, 1999.</td> </tr> <tr> <td style="text-align:left" leaders="yes">7.4</td> <td style="text-align:left">January 1, 2000, to December 31, 2000.</td> </tr> <tr> <td style="text-align:left" leaders="yes">7.5</td> <td style="text-align:left">January 1, 2001, to December 31, 2002.</td> </tr> </tbody> </table> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="a">(3)</num> <heading><inline class="smallCaps">Military service</inline>.—</heading><content>Section 252(h)(1) of the Central Intelligence Agency Retirement Act (50 U.S.C. 2082(h)(1)), is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num><paragraph class="inline"><num value="1">(1)</num><subparagraph class="inline"><num value="A">(A)</num> <content>Each participant who has performed military service before the date of separation on which entitlement to an annuity under this title is based may pay to the Agency an amount equal to 7 percent of the amount of basic pay paid under section 204 of title 37, United States Code, to the participant for each period of military service after December 1956; except, the amount to be paid for military service performed beginning on January 1, 1999, through December 31, 2002, shall be as follows: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <tbody> <tr> <td style="text-align:left">“7.25 percent of basic pay.</td> <td style="text-align:left">January 1, 1999, to December 31, 1999.</td> </tr> <tr> <td style="text-align:left">7.4 percent of basic pay.</td> <td style="text-align:left">January 1, 2000, to December 31, 2000.</td> </tr> <tr> <td style="text-align:left">7.5 percent of basic pay.</td> <td style="text-align:left">January 1, 2001, to December 31, 2002.</td> </tr> </tbody> </table> </content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B)</num> <content>The amount of such payments shall be based on such evidence of basic pay for military service as the participant may provide or, if the Director determines sufficient evidence has not been provided to adequately determine basic pay for military service, such payment shall be based upon estimates of such basic pay provided to the Director under paragraph (4).”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Foreign Service Retirement and Disability System</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Agency contributions</inline>.—</heading><chapeau>Notwithstanding section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s4045">22 USC 4045 note</ref>.</p></sidenote> 805(a) (1) and (2) of the Foreign Service Act of 1980 (22 U.S.C. 4045(a) (1) and (2)), during the period beginning on October 1, 1997, through September 30, 2002, each agency employing a participant in the Foreign Service Retirement and Disability System shall contribute to the Foreign Service Retirement and Disability Fund—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>8.51 percent of the basic pay of each participant covered under section 805(a)(1) of such Act participating in the Foreign Service Retirement and Disability System; and<page identifier="/us/stat/111/660">111 STAT. 660</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>9.01 percent of the basic pay of each participant covered under section 805(a)(2) of such Act participating in the Foreign Service Retirement and Disability System; in lieu of the agency contribution otherwise required under section 805(a)(1) and (2) of such Act.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Individual deductions, withholdings, and deposits</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s4045">22 USC 4045 note</ref>.</p></sidenote> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Notwithstanding section 805(a)(1) of the Foreign Service Act of 1980 (22 U.S.C. 4045(a)(1)), beginning on January 1, 1999, through December 31, 2002, the amount withheld and deducted from the basic pay of a participant in the Foreign Service Retirement and Disability System shall be as follows: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <tbody> <tr> <td style="text-align:left" leaders="yes">7.25</td> <td style="text-align:left">January 1, 1999, to December 31, 1999.</td> </tr> <tr> <td style="text-align:left" leaders="yes">7.4</td> <td style="text-align:left">January 1, 2000, to December 31, 2000.</td> </tr> <tr> <td style="text-align:left" leaders="yes">7.5</td> <td style="text-align:left">January 1, 2001, to December 31, 2002.</td> </tr> </tbody> </table> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s4045">22 USC 4045 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Foreign service criminal investigators/inspectors of the office of the inspector general, agency for international development</inline>.—</heading><content>Notwithstanding section 805(a)(2) of the Foreign Service Act of 1980 (22 U.S.C. 4045(a)(2)), beginning on January 1, 1999, through December 31, 2002, the amount withheld and deducted from the basic pay of an eligible Foreign Service criminal investigator/inspector of the Office of the Inspector General, Agency for International Development participating in the Foreign Service Retirement and Disability System shall be as follows: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <tbody> <tr> <td style="text-align:left" leaders="yes">7.75</td> <td style="text-align:left">January 1, 1999, to December 31, 1999.</td> </tr> <tr> <td style="text-align:left" leaders="yes">7.9</td> <td style="text-align:left">January 1, 2000, to December 31, 2000.</td> </tr> <tr> <td style="text-align:left" leaders="yes">8</td> <td style="text-align:left">January 1, 2001, to December 31, 2002.</td> </tr> </tbody> </table> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <heading><inline class="smallCaps">Conforming amendment</inline>.—</heading><content>Section 805(d)(1) of the Foreign Service Act of 1980 (22 U.S.C. 4045(d)(1)) is amended in the table in the matter following subparagraph (B) by striking: <quotedContent> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <tbody> <tr> <td style="text-align:left" leaders="yes">“On and after January 1, 1970</td> <td style="text-align:left">7”;</td> </tr> </tbody> </table> <continuation class="indent0 fontsize10">and inserting the following:</continuation> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <tbody> <tr> <td style="text-align:left">“January 1, 1970, through December 31, 1998, inclusive.</td> <td style="text-align:left">7</td> </tr> <tr> <td style="text-align:left">January 1, 1999, through December 31, 1999, inclusive.</td> <td style="text-align:left">7.25</td> </tr> <tr> <td style="text-align:left">January 1, 2000, through December 31, 2000, inclusive.</td> <td style="text-align:left">7.4</td> </tr> </tbody> </table> <page identifier="/us/stat/111/661">111 STAT. 661</page> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <tbody> <tr> <td style="text-align:left">January 1, 2001, through December 31, 2002, inclusive.</td> <td style="text-align:left">7.5</td> </tr> <tr> <td style="text-align:left" leaders="yes">After December 31, 2002</td> <td style="text-align:left">7”.</td> </tr> </tbody> </table> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <heading><inline class="smallCaps">Military service</inline>.—</heading><chapeau>Section 805(e) of the Foreign Service Act of 1980 (22 U.S.C. 4045(e)) is amended—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>in subsection (e)(1) by striking “<quotedText>Each</quotedText>” and inserting “<quotedText>Subject to paragraph (5), each</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by adding after paragraph (4) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>Effective with respect to any period of military or naval<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> service after December 31, 1998, the percentage of basic pay under section 204 of title 37, United States Code, payable under paragraph (1) shall be equal to the same percentage as would be applicable under section 8334(c) of title 5, United States Code, for that same period for service as an employee.”.</content></paragraph> </quotedContent> </content></clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Foreign Service Pension System</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Individual deductions and withholdings from pay</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 856(a) of the Foreign Service Act of 1980 (22 U.S.C. 4071e(a)) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num><paragraph class="inline"><num value="1">(1)</num> <content>The employing agency shall deduct and withhold from the basic pay of each participant the applicable percentage of basic pay specified in paragraph (2) of this subsection minus the percentage then in effect under section 3101(a) of the Internal Revenue Code of 1986 (26 U.S.C. 3101(a)) (relating to the rate of tax for old age, survivors, and disability insurance).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2)</num> <content>The applicable percentage under this subsection shall be as follows: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <tbody> <tr> <td style="text-align:left" leaders="yes">“7.5</td> <td style="text-align:left">Before January 1, 1999.</td> </tr> <tr> <td style="text-align:left" leaders="yes">7.75</td> <td style="text-align:left">January 1, 1999, to December 31, 1999.</td> </tr> <tr> <td style="text-align:left" leaders="yes">7.9</td> <td style="text-align:left">January 1, 20C0, to December 31, 2000.</td> </tr> <tr> <td style="text-align:left" leaders="yes">8</td> <td style="text-align:left">January 1, 2001, to December 31, 2002.</td> </tr> <tr> <td style="text-align:left" leaders="yes">7.5</td> <td style="text-align:left">After December 31, 2002.”.</td> </tr> </tbody> </table> </content></paragraph> </subsection> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Volunteer service</inline>.—</heading><content>Subsection 854(c) of the Foreign Service Act of 1980 (22 U.S.C. 4071c(c)) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num><paragraph class="inline"><num value="1">(1)</num> <chapeau>Credit shall be given under this System to a participant for a period of prior satisfactory service as—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>a volunteer or volunteer leader under the Peace Corps Act (22 U.S.C. 2501 et seq.),</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>a volunteer under part A of title VIII of the Economic Opportunity Act of 1964, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>a full-time volunteer for a period of service of at least 1 year’s duration under part A, B, or C of title I of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4951 et seq.),</content></subparagraph> <continuation class="indent0 fontsize10"><content>if the participant makes a payment to the Fund equal to 3 percent of pay received for the volunteer service; except, the amount to be paid for volunteer service beginning on January 1, 1999, through December 31, 2002, shall be as follows:<page identifier="/us/stat/111/662">111 STAT. 662</page> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <tbody> <tr> <td style="text-align:left" leaders="yes">“3.25</td> <td style="text-align:left">January 1, 1999, to December 31, 1999.</td> </tr> <tr> <td style="text-align:left" leaders="yes">3.4</td> <td style="text-align:left">January 1, 2000, to December 31, 2000.</td> </tr> <tr> <td style="text-align:left" leaders="yes">3.5</td> <td style="text-align:left">January 1, 2001, to December 31, 2002.</td> </tr> </tbody> </table></content></continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote> <content>The amount of such payments shall be determined in accordance with regulations of the Secretary of State consistent with regulations for making corresponding determinations under chapter 83, title 5, United States Code, together with interest determined under regulations issued by the Secretary of State.”.</content></paragraph> </subsection> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s4071c">22 USC 4071c</ref>.</p></sidenote> <heading><inline class="smallCaps">No reduction in agency contributions</inline>.—</heading><content>Agency contributions under section 857 of the Foreign Service Act of 1980 (22 U.S.C. 40711) shall not be reduced as a result of the amendments made under paragraph (1) of this subsection.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s8334">5 USC 8334 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>This section shall take effect on—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>October 1, 1997; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>if later, the date of enactment of this Act.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Special rule</inline>.—</heading><content>If the date of enactment of this Act is later than October 1, 1997, then any reference to October 1, 1997, in subsection (a)(1), (c)(1), or (d)(1) shall be treated as a reference to the date of enactment of this Act.</content></paragraph> </subsection> </section> <section> <num value="7002">SEC. 7002.</num> <heading>GOVERNMENT CONTRIBUTIONS UNDER THE FEDERAL EMPLOYEES HEALTH BENEFITS PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 8906 of title 5, United States Code, is amended by striking subsection (a) and all that follows through the end of paragraph (1) of subsection (b) and inserting the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num><paragraph class="inline"><num value="1">(1)</num> <chapeau>Not later than October 1 of each year, the Office of Personnel Management shall determine the weighted average of the subscription charges that will be in effect during the following contract year with respect to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>enrollments under this chapter for self alone; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>enrollments under this chapter for self and family.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2)</num> <content>In determining each weighted average under paragraph (1), the weight to be given to a particular subscription charge shall, with respect to each plan (and option) to which it is to apply, be commensurate with the number of enrollees enrolled in such plan (and option) as of March 31 of the year in which the determination is being made.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3)</num> <content>For purposes of paragraph (2), the term ‘enrollee’ means any individual who, during the contract year for which the weighted average is to be used under this section, will be eligible for a Government contribution for health benefits.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num><paragraph class="inline"><num value="1">(1)</num> <content>Except as provided in paragraphs (2) and (3), the biweekly Government contribution for health benefits for an employee or annuitant enrolled in a health benefits plan under this chapter is adjusted to an amount equal to 72 percent of the weighted average under subsection (a)(1) (A) or (B), as applicable. For an employee, the adjustment begins on the first day of the employee’s first pay period of each year. For an annuitant, the adjustment begins on the first day of the first period of each year for which an annuity payment is made.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s8906">5 USC 8906 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>This section shall take effect on the first day of the contract year that begins in 1999. Nothing in this subsection shall prevent the Office of Personnel Management <page identifier="/us/stat/111/663">111 STAT. 663</page>from taking any action, before such first day, which it considers necessary in order to ensure the timely implementation of this section.</content> </subsection> </section> <section> <num value="7003">SEC. 7003.</num> <heading>REPEAL OF AUTHORIZATION OF TRANSITIONAL APPROPRIATIONS FOR THE UNITED STATES POSTAL SERVICE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Repeal</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 2004 of title 39, United States Code, is repealed.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Technical and conforming amendments</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>The table of sections for chapter 20 of such title is amended by repealing the item relating to section 2004.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Section 2003(e)(2) of such title is amended by striking “<quotedText>sections 2401 and 2004</quotedText>” each place it appears and inserting “<quotedText>section 2401</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Clarification That Liabilities Formerly Paid Pursuant to Section 2004 Remain Liabilities Payable by the Postal Service</inline>.—</heading><content>Section 2003 of title 39, United States Code, is amended by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <content>Liabilities of the former Post Office Department to the Employees’ Compensation Fund (appropriations for which were authorized by former section 2004, as in effect before the effective date of this subsection) shall be liabilities of the Postal Service payable out of the Fund.”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s2003">39 USC 2003 note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>This section and the amendments made by this section shall take effect on the date of the enactment of this Act or October 1, 1997, whichever is later.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Provisions relating to payments for fiscal year 1998</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">Amounts not yet paid</inline>.—</heading><content>No payment may be made to the Postal Service Fund, on or after the date of the enactment of this Act, pursuant to any appropriation for fiscal year 1998 authorized by section 2004 of title 39, United States Code (as in effect before the effective date of this section).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Amounts paid</inline>.—</heading><content>If any payment to the Postal Service Fund is or has been made pursuant to an appropriation for fiscal year 1998 authorized by such section 2004, then, an amount equal to the amount of such payment shall be paid from such Fund into the Treasury as miscellaneous receipts before October 1, 1998.</content></subparagraph> </paragraph> </subsection> </section> <num value="VIII">TITLE VIII—</num><heading>VETERANS AND RELATED MATTERS</heading><sidenote><p class="indent0 firstIndent0 fontsize8">Veterans Reconciliation Act of 1997.</p></sidenote> <section> <num value="8001">SEC. 8001.</num> <heading>SHORT TITLE; TABLE OF CONTENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Short Title</inline>.—</heading><content>This title may be cited as the “Veterans Reconciliation Act of 1997”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Table of Contents</inline>.—</heading><content>The table of contents for this title is as follows: <toc> <referenceItem role="section"><designator>Sec. 8001.</designator> <label>Short title; table of contents.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle A—</designator><label>Extension of Temporary Authorities</label></referenceItem> <referenceItem role="section"><designator>Sec. 8011.</designator> <label>Enhanced loan asset sale authority.</label></referenceItem> <referenceItem role="section"><designator>Sec. 8012.</designator> <label>Home loan fees.<page identifier="/us/stat/111/664">111 STAT. 664</page></label></referenceItem> <referenceItem role="section"><designator>Sec. 8013.</designator> <label>Procedures applicable to liquidation sales on defaulted home loans guaranteed by the Department of Veterans Affairs.</label></referenceItem> <referenceItem role="section"><designator>Sec. 8014.</designator> <label>Income verification authority.</label></referenceItem> <referenceItem role="section"><designator>Sec. 8015.</designator> <label>Limitation on pension for certain recipients of medicaid-covered nursing home care.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle B—</designator><label>Copayments and Medical Care Cost Recovery</label></referenceItem> <referenceItem role="section"><designator>Sec. 8021.</designator> <label>Authority to require that certain veterans make copayments in exchange for receiving health care benefits.</label></referenceItem> <referenceItem role="section"><designator>Sec. 8022.</designator> <label>Medical care cost recovery authority.</label></referenceItem> <referenceItem role="section"><designator>Sec. 8023.</designator> <label>Department of Veterans Affairs medical-care receipts.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle C—</designator><label>Other Matters</label></referenceItem> <referenceItem role="section"><designator>Sec. 8031.</designator> <label>Rounding down of cost-of-living adjustments in compensation and DIC rates for fiscal years 1998 through 2002.</label></referenceItem> <referenceItem role="section"><designator>Sec. 8032.</designator> <label>Increase in amount of home loan fees for the purchase of repossessed homes from the Department of Veterans Affairs.</label></referenceItem> <referenceItem role="section"><designator>Sec. 8033.</designator> <label>Withholding of payments and benefits.</label></referenceItem> </toc> </content></subsection> </section> <subtitle> <num value="A">Subtitle A—</num><heading>Extension of Temporary Authorities</heading> <section> <num value="8011">SEC. 8011.</num> <heading>ENHANCED LOAN ASSET SALE AUTHORITY.</heading> <content>Section 3720(h)(2) of title 38, United States Code, is amended by striking out “December 31, 1997” and inserting in lieu thereof “December 31, 2002”.</content> </section> <section> <num value="8012">SEC. 8012.</num> <heading>HOME LOAN FEES.</heading> <chapeau>Section 3729(a) of title 38, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in paragraph (4), by striking out “October 1, 1998” and inserting in lieu thereof “October 1, 2002”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in paragraph (5)(C), by striking out “October 1, 1998” and inserting in lieu thereof “October 1, 2002”.</content></paragraph> </section> <section> <num value="8013">SEC. 8013.</num> <heading>PROCEDURES APPLICABLE TO LIQUIDATION SALES ON DEFAULTED HOME LOANS GUARANTEED BY THE DEPARTMENT OF VETERANS AFFAIRS.</heading> <content>Section 3732(c)(11) of title 38, United States Code, is amended by striking out “October 1, 1998” and inserting in lieu thereof “October 1, 2002”.</content> </section> <section> <num value="8014">SEC. 8014.</num> <heading>INCOME VERIFICATION AUTHORITY.</heading> <content>Section 5317(g) of title 38, United States Code, is amended by striking out “September 30, 1998” and inserting in lieu thereof “September 30, 2002”.</content> </section> <section> <num value="8015">SEC. 8015.</num> <heading>LIMITATION ON PENSION FOR CERTAIN RECIPIENTS OF MEDICAID-COVERED NURSING HOME CARE.</heading> <content>Section 5503(f)(7) of title 38, United States Code, is amended by striking out “September 30, 1998” and inserting in lieu thereof “September 30, 2002”.</content> </section> </subtitle> <subtitle> <num value="B">Subtitle B—</num><heading>Copayments and Medical Care Cost Recovery</heading> <section> <num value="8021">SEC. 8021.</num> <heading>AUTHORITY TO REQUIRE THAT CERTAIN VETERANS MAKE COPAYMENTS IN EXCHANGE FOR RECEIVING HEALTH CARE BENEFITS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Hospital and Medical Care</inline>.—<page identifier="/us/stat/111/665">111 STAT. 665</page></heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Extension</inline>.—</heading><content>Section 1710(f)(2)(B) of title 38, United States Code, is amended by inserting “<quotedText>before September 30, 2002,</quotedText>” after “(B)”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Repeal of superseded provision</inline>.—</heading><content>Section 8013(e) of the Omnibus Budget Reconciliation Act of 1990 (38 U.S.C. 1710 note) is repealed.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Outpatient Medications</inline>.—</heading><content>Section 1722A(c) of title 38, United States Code, is amended by striking out “September 30, 1998” and inserting in lieu thereof “September 30, 2002”.</content> </subsection> </section> <section> <num value="8022">SEC. 8022.</num> <heading>MEDICAL CARE COST RECOVERY AUTHORITY.</heading> <content>Section 1729(a)(2)(E) of title 38, United States Code, is amended by striking out “October 1, 1998” and inserting in lieu thereof “October 1, 2002”.</content> </section> <section> <num value="8023">SEC. 8023.</num> <heading>DEPARTMENT OF VETERANS AFFAIRS MEDICALCARE RECEIPTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Allocation of Receipts</inline>.—</heading><paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Chapter 17 of title 38, United States Code, is amended by inserting after section 1729 the following new section: <quotedContent> <section> <num value="1729A">“§ 1729A.</num> <heading>Department of Veterans Affairs Medical Care Collections Fund</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <content>There is in the Treasury a fund to be known as the Department of Veterans Affairs Medical Care Collections Fund.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <chapeau>Amounts recovered or collected after June 30, 1997, under any of the following provisions of law shall be deposited in the fund:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>Section 1710(f) of this title.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>Section 1710(g) of this title.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>Section 1711 of this title.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>Section 1722A of this title.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>Section 1729 of this title.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>Public Law 87–693, popularly known as the ‘Federal Medical Care Recovery Act’ (42 U.S.C. 2651 et seq.), to the extent that a recovery or collection under that law is based on medical care or services furnished under this chapter.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num><paragraph class="inline"><num value="1">(1)</num> <chapeau>Subject to the provisions of appropriations Acts, amounts in the fund shall be available, without fiscal year limitation, to the Secretary for the following purposes:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Furnishing medical care and services under this chapter, to be available during any fiscal year for the same purposes and subject to the same limitations (other than with respect to the period of availability for obligation) as apply to amounts appropriated from the general fund of the Treasury for that fiscal year for medical care.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Expenses of the Department for the identification, billing, auditing, and collection of amounts owed the United States by reason of medical care and services furnished under this chapter.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2)</num> <content>Amounts available under paragraph (1) may not be used for any purpose other than a purpose set forth in subparagraph (A) or (B) of that paragraph.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3)</num><subparagraph class="inline"><num value="A">(A)</num> <content>If for fiscal year 1998 the Secretary determines that the total amount to be recovered under the provisions of law specified in subsection (b) will be less than the amount contained in the latest Congressional Budget Office baseline estimate (computed under section 257 of the Balanced Budget and Emergency Deficit <page identifier="/us/stat/111/666">111 STAT. 666</page>Control Act of 1985) for the amount of such recoveries for fiscal year 1998 by at least $25,000,000, the Secretary shall promptly certify to the Secretary of the Treasury the amount of the shortfall (as estimated by the Secretary) that is in excess of $25,000,000. Upon receipt of such a certification, the Secretary of the Treasury shall, not later than 30 days after receiving the certification, deposit in the fund, from any unobligated amounts in the Treasury, an amount equal to the amount certified by the Secretary.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>If for fiscal year 1998 a deposit is made under subparagraph (A) and the Secretary subsequently determines that the actual amount recovered for that fiscal year under the provisions of law specified in subsection (b) is greater than the amount estimated by the Secretary that was used for purposes of the certification by the Secretary under subparagraph (A), the Secretary shall pay into the general fund of the Treasury, from amounts available for medical care, an amount equal to the difference between the amount actually recovered and the amount so estimated (but not in excess of the amount of the deposit under subparagraph (A) pursuant to such certification).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>If for fiscal year 1998 a deposit is made under subparagraph (A) and the Secretary subsequently determines that the actual amount recovered for that fiscal year under the provisions of law specified in subsection (b) is less than the amount estimated by the Secretary that was used for purposes of the certification by the Secretary under subparagraph (A), the Secretary shall promptly certify to the Secretary of the Treasury the amount of the shortfall. Upon receipt of such a certification, the Secretary of the Treasury shall, not later than 30 days after receiving the certification, deposit in the fund, from any unobligated amounts in the Treasury, an amount equal to the amount certified by the Secretary.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num><paragraph class="inline"><num value="1">(1)</num> <content>Of the total amount recovered or collected by the Department during a fiscal year under the provisions of law referred to in subsection (b) and made available from the fund, the Secretary shall make available to each designated health care region of the Department an amount that bears the same ratio to the total amount so made available as the amount recovered or collected by such region during that fiscal year under such provisions of law bears to such total amount recovered or collected during that fiscal year. The Secretary shall make available to each region the entirety of the amount specified to be made available to such region by the preceding sentence.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2)</num> <content>In this subsection, the term ‘designated health care regions of the Department’ means the geographic areas designated by the Secretary for purposes of the management of, and allocation of resources for, health care services provided by the Department.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote><paragraph class="inline"><num value="1">(1)</num> <content>The Secretary shall submit to the Committees on Veterans’ Affairs of the Senate and House of Representatives quarterly reports on the operation of this section for fiscal years 1998, 1999, and 2000 and for the first quarter of fiscal year 2001. Each such report shall specify the amount collected under each of the provisions specified in subsection (b) during the preceding quarter and the amount originally estimated to be collected under each such provision during such quarter.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2)</num> <content>A report under paragraph (1) for a quarter shall be submitted not later than 45 days after the end of that quarter.<page identifier="/us/stat/111/667">111 STAT. 667</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <content>Amounts recovered or collected under the provisions of law referred to in subsection (b) shall be treated for the purposes of sections 251 and 252 of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901, 902) as offsets to discretionary appropriations (rather than as offsets to direct spending) to the extent that such amounts are made available for expenditure in appropriations Acts for the purposes specified in subsection (c).”.</content> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 1729 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“1729A.</designator> <label>Department of Veterans Affairs Medical Care Collections Fund.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><chapeau>Chapter 17 of such title is amended as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Section 1710(f) is amended by striking out paragraph (4) and redesignating paragraph (5) as paragraph (4).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Section 1710(g) is amended by striking out paragraph (4).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Section 1722A(b) is amended by striking out “Department of Veterans Affairs Medical-Care Cost Recovery Fund” and inserting in lieu thereof “Department of Veterans Affairs Medical Care Collections Fund”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>Section 1729 is amended by striking out subsection (g).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Disposition of Funds in Medical-Care Cost Recovery Fund</inline>.—</heading><content><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t38/s1729">38 USC 1729 note</ref>.</p></sidenote>The amount of the unobligated balance remaining in the Department of Veterans Affairs Medical-Care Cost Recovery Fund (established pursuant to section 1729(g)(1) of title 38, United States Code) at the close of June 30, 1997, shall be deposited, not later than December 31, 1997, in the Treasury as miscellaneous receipts, and the Department of Veterans Affairs Medical-Care Cost Recovery Fund shall be terminated when the deposit is made.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Determination of Amounts Subject to Recovery</inline>.—</heading><chapeau>Section 1729 of title 38, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subsection (a)(1), by striking out “the reasonable cost of” and inserting in lieu thereof “reasonable charges for”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>in subsection (c)(2)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking out “the reasonable cost of” in the first sentence of subparagraph (A) and in subparagraph (B) and inserting in lieu thereof “reasonable charges for”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking out “cost” in the second sentence of subparagraph (A) and inserting in lieu thereof “charges”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Technical Amendment</inline>.—</heading><chapeau>Paragraph (2) of section 712(b) of title 38, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking out subparagraph (B); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by redesignating subparagraph (C) as subparagraph (B).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Implementation</inline>.—</heading><content>Not later than January 1, 1999, the Secretary<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t38/s1729A">38 USC 1729A note</ref>.</p></sidenote> of Veterans Affairs shall submit to the Committees on Veterans’ Affairs of the Senate and House of Representatives a report note on the implementation of this section. The report shall describe the collections under each of the provisions specified in section 1729A(b) of title 38, United States Code, as added by subsection (a). Information on such collections shall be shown for each of the health service networks (known as Veterans Integrated Service Networks) and, to the extent practicable for each facility within <page identifier="/us/stat/111/668">111 STAT. 668</page>each such network. The Secretary shall include in the report an analysis of differences among the networks with respect to (A) the market in which the networks operates, (B) the effort expended to achieve collections, (C) the efficiency of such effort, and (D) any other relevant information.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t38/s712">38 USC 712 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><paragraph class="inline"><num value="1">(1)</num> <content>Except as provided in paragraph (2), this section and the amendments made by this section shall take effect on October 1, 1997.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <content>The amendments made by subsection (d) shall take effect on the date of the enactment of this Act.</content></paragraph> </subsection> </section> </subtitle> <subtitle> <num value="C">Subtitle C—</num><heading>Other Matters</heading> <section> <num value="8031">SEC. 8031.</num> <heading>ROUNDING DOWN OF COST-OF-LIVING ADJUSTMENTS IN COMPENSATION AND DIC RATES FOR FISCAL YEARS 1998 THROUGH 2002.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Compensation COLAs</inline>.—</heading><paragraph class="inline"><num value="1">(1)</num> <content>Chapter 11 of title 38, United States Code, is amended by inserting after section 1102 the following new section: <quotedContent> <section> <num value="1103">“§ 1103.</num> <heading>Cost-of-living adjustments</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <content>In the computation of cost-of-living adjustments for fiscal years 1998 through 2002 in the rates of, and dollar limitations applicable to, compensation payable under this chapter, such adjustments shall be made by a uniform percentage that is no more than the percentage equal to the social security increase for that fiscal year, with all increased monthly rates and limitations (other than increased rates or limitations equal to a whole dollar amount) rounded down to the next lower whole dollar amount.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <content>For purposes of this section, the term ‘social security increase’ means the percentage by which benefit amounts payable under title II of the Social Security Act (42 U.S.C. 401 et seq.) are increased for any fiscal year as a result of a determination under section 215(i) of such Act (42 U.S.C. 415(i)).”</content> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 1102 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“1103.</designator> <label>Cost-of-living adjustments.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">DIC COLAs</inline>.—</heading><paragraph class="inline"><num value="1">(1)</num> <content>Chapter 13 of title 38, United States Code, is amended by inserting after section 1302 the following new section: <quotedContent> <section> <num value="1303">“§ 1303.</num> <heading>Cost-of-living adjustments</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <content>In the computation of cost-of-living adjustments for fiscal years 1998 through 2002 in the rates of dependency and indemnity compensation payable under this chapter, such adjustments (except as provided in subsection (b)) shall be made by a uniform percentage that is no more than the percentage equal to the social security increase for that fiscal year, with all increased monthly rates (other than increased rates equal to a whole dollar amount) rounded down to the next lower whole dollar amount.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <content>For purposes of this section, the term ‘social security increase’ means the percentage by which benefit amounts payable under title II of the Social Security Act (42 U.S.C. 401 et seq.) are increased for any fiscal year as a result of a determination under section 215(i) of such Act (42 U.S.C. 415(i))."..<page identifier="/us/stat/111/669">111 STAT. 669</page></content> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 1302 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“1303.</designator> <label>Cost-of-living adjustments.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> </section> <section> <num value="8032">SEC. 8032.</num> <heading>INCREASE IN AMOUNT OF HOME LOAN FEES FOR THE PURCHASE OF REPOSSESSED HOMES FROM THE DEPARTMENT OF VETERANS AFFAIRS.</heading> <chapeau>Section 3729(a) of title 38, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in paragraph (2)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in subparagraph (A), by striking out “or 3733(a)”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in subparagraph (D), by striking out “and” at the end;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>in subparagraph (E), by striking out the period at the end and inserting in lieu thereof “; and”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>in the case of a loan made under section 3733(a) of this title, the amount of such fee shall be 2.25 percent of the total loan amount.”; and</content></subparagraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in paragraph (4), as amended by section 8012(1) of this Act, by striking out “or (E)” and inserting in lieu thereof “(E), or (F)”.</content></paragraph> </section> <section> <num value="8033">SEC. 8033.</num> <heading>WITHHOLDING OF PAYMENTS AND BENEFITS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Notice Required in Lieu of Consent or Court Order</inline>.—</heading><chapeau>Section 3726 of title 38, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by inserting “<quotedText>(a)</quotedText>” before “No officer”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking out “unless” and all that follows and inserting in lieu thereof the following: “unless the Secretary provides such veteran or surviving spouse with notice by certified mail with return receipt requested of the authority of the Secretary to waive the payment of indebtedness under section 5302(b) of this title.”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by adding at the end the following new subsections: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <content>If the Secretary does not waive the entire amount of the liability, the Secretary shall then determine whether the veteran or surviving spouse should be released from liability under section 3713(b) of this title.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <content>If the Secretary determines that the veteran or surviving spouse should not be released from liability, the Secretary shall notify the veteran or surviving spouse of that determination and provide a notice of the procedure for appealing that determination, unless the Secretary has previously made such determination and notified the veteran or surviving spouse of the procedure for appealing the determination.”.</content> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>Section 5302(b) of such title is amended by inserting “<quotedText>with return receipt requested</quotedText>” after “certified mail”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t38/s3726">38 USC 3726 note</ref>.</p></sidenote> shall apply with respect to any indebtedness to the United States note arising pursuant to chapter 37 of title 38, United States Code, before, on, or after the date of enactment of this Act.<page identifier="/us/stat/111/670">111 STAT. 670</page></content> </subsection> </section> </subtitle> <num value="IX">TITLE IX—</num><heading>ASSET SALES, USER FEES, AND MISCELLANEOUS PROVISIONS</heading> <section> <num value="9000">SEC. 9000.</num> <heading>TABLE OF CONTENTS.</heading> <content>The table of contents for this title is as follows: <toc> <referenceItem role="title"><designator>TITLE IX—</designator><label>ASSET SALES, USER FEES, AND MISCELLANEOUS PROVISIONS</label></referenceItem> <referenceItem role="section"><designator>Sec. 9000.</designator> <label>Table of contents.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle A—</designator><label>Asset Sales</label></referenceItem> <referenceItem role="section"><designator>Sec. 9101.</designator> <label>Sale of Governors Island, New York.</label></referenceItem> <referenceItem role="section"><designator>Sec. 9102.</designator> <label>Sale of air rights.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle B—</designator><label>User Fees</label></referenceItem> <referenceItem role="section"><designator>Sec. 9201.</designator> <label>Extension of higher vessel tonnage duties.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle C—</designator><label>Miscellaneous Provisions</label></referenceItem> <referenceItem role="section"><designator>Sec. 9301.</designator> <label>Temporary Federal share formula adjustment.</label></referenceItem> <referenceItem role="section"><designator>Sec. 9302.</designator> <label>Increase in excise taxes on tobacco products.</label></referenceItem> <referenceItem role="section"><designator>Sec. 9303.</designator> <label>Lease of excess strategic petroleum reserve capacity.</label></referenceItem> <referenceItem role="section"><designator>Sec. 9304.</designator> <label>Identification of limited tax benefits subject to line item veto.</label></referenceItem> <referenceItem role="section"><designator>Sec. 9305.</designator> <label>Payment of benefits in appropriate fiscal year.</label></referenceItem> </toc> </content></section> <subtitle> <num value="A">Subtitle A—</num><heading>Asset Sales</heading> <section> <num value="9101">SEC. 9101.</num> <heading>SALE OF GOVERNORS ISLAND, NEW YORK.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Notwithstanding any other provision of law, the Administrator of General Services shall, no earlier than fiscal year 2002, dispose of by sale at fair market value all rights, title, and interests of the United States in and to the land of, and improvements to, Governors Island, New York.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Right of First Offer</inline>.—</heading><content>Before a sale is made under subsection (a) to any other parties, the State of New York and the city of New York shall be given the right of first offer to purchase all or part of Governors Island at fair market value as determined by the Administrator of General Services. Not later than 90 days after notification by the Administrator of General Services, such right may be exercised by either the State of New York or the city of New York or by both parties acting jointly.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Proceeds</inline>.—</heading><content>Proceeds from the disposal of Governors Island under subsection (a) shall be deposited in the general fund of the Treasury and credited as miscellaneous receipts.</content> </subsection> </section> <section> <num value="9102">SEC. 9102.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t40/s811">40 USC 811 note</ref>.</p></sidenote> <heading>SALE OF AIR RIGHTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Notwithstanding any other provision of law, the Administrator of General Services shall sell, at fair market value and in a manner to be determined by the Administrator, the air rights adjacent to Washington Union Station described in subsection (b), including air rights conveyed to the Administrator under subsection (d). The Administrator shall complete the sale by such date as is necessary to ensure that the proceeds from the sale will be deposited in accordance with subsection (c).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Description</inline>.—</heading><chapeau>The air rights referred to in subsection (a) total approximately 16.5 acres and are depicted on the plat map of the District of Columbia as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Part of lot 172, square 720.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Part of lots 172 and 823, square 720.<page identifier="/us/stat/111/671">111 STAT. 671</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Part of lot 811, square 717.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Proceeds</inline>.—</heading><content>Before September 30, 2002, proceeds from the sale of air rights under subsection (a) shall be deposited in the general fund of the Treasury and credited as miscellaneous receipts.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Conveyance of Amtrak Air Rights</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">General rule</inline>.—</heading><content>As a condition of future Federal financial assistance, Amtrak shall convey to the Administrator of General Services on or before December 31, 1997, at no charge, all of the air rights of Amtrak described in subsection (b).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Failure to comply</inline>.—</heading><content>If Amtrak does not meet the condition established by paragraph (1), Amtrak shall be prohibited from obligating Federal funds after March 1, 1998.</content></paragraph> </subsection> </section> </subtitle> <subtitle> <num value="B">Subtitle B—</num><heading>User Fees</heading> <section> <num value="9201">SEC. 9201.</num> <heading>EXTENSION OF HIGHER VESSEL TONNAGE DUTIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Extension of Duties</inline>.—</heading><content>Section 36 of the Act of August 5, 1909 (36 Stat. 111; 46 U.S.C. App. 121) is amended by striking “<quotedText>for fiscal years 1991, 1992, 1993, 1994, 1995, 1996, 1997, 1998,</quotedText>” each place it appears and inserting “<quotedText>for fiscal years 1991 through 2002,</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>The Act entitled “An Act concerning tonnage duties on vessels entering otherwise than by sea”, approved March 8, 1910 (36 Stat. 234; 46 U.S.C. App. 132) is amended by striking “<quotedText>for fiscal years 1991, 1991, 1992, 1993, 1994, 1995, 1996, 1997, 1998,</quotedText>” and inserting “<quotedText>for fiscal years 1991 through 2002,</quotedText>”.</content> </subsection> </section> </subtitle> <subtitle> <num value="C">Subtitle C—</num><heading>Miscellaneous Provisions</heading> <section> <num value="9301">SEC. 9301.</num> <heading>TEMPORARY FEDERAL SHARE FORMULA ADJUSTMENT.</heading><sidenote><p class="indent0 firstIndent0 fontsize8">Minnesota.</p></sidenote> <content>The Federal share of the cost of assistance provided under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.) for damages suffered in Kittson, Marshall, Polk, Norman, Clay, and Wilkin Counties, Minnesota, as a result of the 1997 floods in the Red River Valley in Minnesota and North Dakota shall be at least 90 percent.</content> </section> <section> <num value="9302">SEC. 9302.</num> <heading>INCREASE IN EXCISE TAXES ON TOBACCO PRODUCTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Cigarettes</inline>.—</heading><chapeau>Subsection (b) of section 5701 of the Internal Revenue Code of 1986 is amended—<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s5701">26 USC 5701</ref>.</p></sidenote></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>$12 per thousand ($10 per thousand on cigarettes removed during 1991 or 1992)</quotedText>” in paragraph (1) and inserting “<quotedText>$19.50 per thousand ($17 per thousand on cigarettes removed during 2000 or 2001)</quotedText>”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<quotedText>$25.20 per thousand ($21 per thousand on cigarettes removed during 1991 or 1992)</quotedText>” in paragraph (2) and inserting “<quotedText>$40.95 per thousand ($35.70 per thousand on cigarettes removed during 2000 or 2001)</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Cigars</inline>.—</heading><chapeau>Subsection (a) of section 5701 of such Code is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>$1,125 cents per thousand (93.75 cents per thousand on cigars removed during 1991 or 1992)</quotedText>” in paragraph (1) and inserting “<quotedText>$1,828 cents per thousand ($1,594 cents per thousand on cigars removed during 2000 or 2001)</quotedText>”, and<page identifier="/us/stat/111/672">111 STAT. 672</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<quotedText>equal to</quotedText>” and all that follows in paragraph (2) and inserting “<quotedText>equal to 20.719 percent (18.063 percent on cigars removed during 2000 or 2001) of the price for which sold but not more than $48.75 per thousand ($42.50 per thousand on cigars removed during 2000 or 2001).</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Cigarette Papers</inline>.—</heading><content>Subsection (c) of section 5701 of such Code is amended by striking “<quotedText>0.75 cent (0.625 cent on cigarette papers removed during 1991 or 1992)</quotedText>” and inserting “<quotedText>1.22 cents (1.06 cents on cigarette papers removed during 2000 or 2001)</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Cigarette Tubes</inline>.—</heading><content>Subsection (d) of section 5701 of such Code is amended by striking “<quotedText>1.5 cents (1.25 cents on cigarette tubes removed during 1991 or 1992)</quotedText>” and inserting “<quotedText>2.44 cents (2.13 cents on cigarette tubes removed during 2000 or 2001)</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Smokeless Tobacco</inline>.—</heading><chapeau>Subsection (e) of section 5701 of such Code is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>36 cents (30 cents on snuff removed during 1991 or 1992)</quotedText>” in paragraph (1) and inserting “<quotedText>58.5 cents (51 cents on snuff removed during 2000 or 2001)</quotedText>”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<quotedText>12 cents (10 cents on chewing tobacco removed during 1991 or 1992)</quotedText>” in paragraph (2) and inserting “<quotedText>19.5 cents (17 cents on chewing tobacco removed during 2000 or 2001)</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Pipe Tobacco</inline>.—</heading><content>Subsection (f) of section 5701 of such Code is amended by striking “<quotedText>67.5 cents (56.25 cents on pipe tobacco removed during 1991 or 1992)</quotedText>” and inserting “<quotedText>$1.0969 cents (95.67 cents on pipe tobacco removed during 2000 or 2001)</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g)</num> <heading><inline class="smallCaps">Imposition Of Excise Tax On Manufacture Or Importation Of Roll-Your-Own Tobacco</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 5701 of such Code (relating to rate of tax) is amended by redesignating subsection (g) as subsection (h) and by inserting after subsection (f) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Roll-Your-Own Tobacco</inline>.—</heading><content>On roll-your-own tobacco, manufactured in or imported into the United States, there shall be imposed a tax of $1.0969 cents (95.67 cents on roll-your-own tobacco removed during 2000 or 2001) per pound (and a proportionate tax at the like rate on all fractional parts of a pound).”.</content> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Roll-your-own tobacco</inline>.—</heading><content>Section 5702 of such Code (relating to definitions) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="p">“(p)</num> <heading><inline class="smallCaps">Roll-your-own tobacco</inline>.—</heading><content>The term ‘roll-your-own tobacco’ means any tobacco which, because of its appearance, type, packaging, or labeling, is suitable for use and likely to be offered to, or purchased by, consumers as tobacco for making cigarettes.”.</content> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Technical amendments</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Subsection (c) of section 5702 of such Code is amended by striking “<quotedText>and pipe tobacco</quotedText>” and inserting “<quotedText>pipe tobacco, and roll-your-own tobacco</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>Subsection (d) of section 5702 of such Code is amended—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>in the material preceding paragraph (1), by striking “<quotedText>or pipe tobacco</quotedText>” and inserting “<quotedText>pipe tobacco, or roll-your-own tobacco</quotedText>”, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking paragraph (1) and inserting the following new paragraph:<page identifier="/us/stat/111/673">111 STAT. 673</page> <quotedContent> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>a person who produces cigars, cigarettes, smokeless tobacco, pipe tobacco, or roll-your-own tobacco solely for the person’s own personal consumption or use, and”.</content></paragraph> </quotedContent> </content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>The chapter heading for chapter 52 of such Code is amended to read as follows: <quotedContent> <chapter> <num value="5">“CHAPTER 52—</num><heading>TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES”.</heading> </chapter> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>The table of chapters for subtitle E of such Code is amended by striking the item relating to chapter 52 and inserting the following new item: <quotedContent> <toc> <referenceItem role="chapter"><designator>“CHAPTER 52.</designator> <label>Tobacco products and cigarette papers and tubes.”.</label></referenceItem> </toc> </quotedContent> </content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h)</num> <heading><inline class="smallCaps">Modifications of Certain Tobacco Tax Provisions</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Exemption for exported tobacco products and cigarette papers and tubes to apply only to articles marked for export</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Subsection (b) of section 5704 of such Code is amended by adding at the end the following new sentence: “Tobacco products and cigarette papers and tubes may not be transferred or removed under this subsection unless such products or papers and tubes bear such marks, labels, or notices as the Secretary shall by regulations prescribe.”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Section 5761 of such Code is amended by redesignating subsections (c) and (d) as subsections (d) and (e), respectively, and by inserting after subsection (b) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Sale of Tobacco Products and Cigarette Papers and Tubes for Export</inline>.—</heading><chapeau>Except as provided in subsections (b) and (d) of section 5704—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>every person who sells, relands, or receives within the jurisdiction of the United States any tobacco products or cigarette papers or tubes which have been labeled or shipped for exportation under this chapter,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>every person who sells or receives such relanded tobacco products or cigarette papers or tubes, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>every person who aids or abets in such selling, relanding, or receiving,</content></paragraph> <continuation class="indent0 fontsize10">shall, in addition to the tax and any other penalty provided in this title, be liable for a penalty equal to the greater of $1,000 or 5 times the amount of the tax imposed by this chapter. All tobacco products and cigarette papers and tubes relanded within the jurisdiction of the United States, and all vessels, vehicles, and aircraft used in such relanding or in removing such products, papers, and tubes from the place where relanded, shall be forfeited to the United States.”.</continuation> </subsection> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>Subsection (a) of section 5761 of such Code is amended by striking “<quotedText>subsection (b)</quotedText>” and inserting “<quotedText>subsection (b) or (c)</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>Subsection (d) of section 5761 of such Code, as redesignated by subparagraph (B), is amended by striking “<quotedText>The penalty imposed by subsection (b)</quotedText>” and inserting “<quotedText>The penalties imposed by subsections (b) and (c)</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num><clause class="inline"><num value="i">(i)</num> <content>Subpart F of chapter 52 of such Code is amended by adding at the end the following new section:<page identifier="/us/stat/111/674">111 STAT. 674</page> <quotedContent> <section> <num value="5754">“SEC. 5754.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s5754">26 USC 5754</ref>.</p></sidenote> <heading>RESTRICTION ON IMPORTATION OF PREVIOUSLY EXPORTED TOBACCO PRODUCTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Tobacco products and cigarette papers and tubes previously exported from the United States may be imported or brought into the United States only as provided in section 5704(d). For purposes of this section, section 5704(d), section 5761, and such other provisions as the Secretary may specify by regulations, references to exportation shall be treated as including a reference to shipment to the Commonwealth of Puerto Rico.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Cross Reference</inline>.—</heading> <content class="indent0 fontsize10"><b>“For penalty for the sale of tobacco products and cigarette papers and tubes in the United States which are labeled for export, see section 5761(c)”.</b></content> </subsection> </section> </quotedContent> </content></clause> <clause class="indent0 fontsize10"><num value="ii">(ii)</num> <content>The table of sections for subpart F of chapter 52 of such Code is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 5754.</designator> <label>Restriction on importation of previously exported tobacco products.”.</label></referenceItem> </toc> </quotedContent> </content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Importers required to be qualified</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Sections 5712, 5713(a), 5721, 5722, 5762(a)(1), and 5763 (b) and (c) of such Code are each amended by inserting “<quotedText>or importer</quotedText>” after “manufacturer”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>The heading of subsection (b) of section 5763 of such Code is amended by inserting “<quotedText><inline class="smallCaps">Qualified Importers</inline>,</quotedText>” after “<inline class="smallCaps">Manufacturers</inline>,”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>The heading for subchapter B of chapter 52 of such Code is amended by inserting “<quotedText><b>and Importers</b></quotedText>” after “<b>Manufacturers.</b>”</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>The item relating to subchapter B in the table of subchapters for chapter 52 of such Code is amended by inserting “<quotedText>and importers</quotedText>” after “manufacturers”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Books of 25 or fewer cigarette papers subject to tax</inline>.—</heading><content>Subsection (c) of section 5701 of such Code is amended by striking “<quotedText>On each book or set of cigarette papers containing more than 25 papers,</quotedText>” and inserting “<quotedText>On cigarette papers,</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Storage of tobacco products</inline>.—</heading><content>Subsection (k) of section 5702 of such Code is amended by inserting “<quotedText>under section 5704</quotedText>” after “internal revenue bond”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <heading><inline class="smallCaps">Authority to prescribe minimum manufacturing activity requirements</inline>.—</heading><content>Section 5712 of such Code is amended by striking “<quotedText>or</quotedText>” at the end of paragraph (1), by redesignating paragraph (2) as paragraph (3), and by inserting after paragraph (1) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the activity proposed to be carried out at such premises does not meet such minimum capacity or activity requirements as the Secretary may prescribe, or”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="i">(i)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s5701">26 USC 5701 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendments made by this section shall apply to articles removed (as defined in section 5702(k) of the Internal Revenue Code of 1986, as amended by this section) after December 31, 1999.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Transitional rule</inline>.—</heading><chapeau>Any person who—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>on the date of the enactment of this Act is engaged in business as a manufacturer of roll-your-own tobacco or as an importer of tobacco products or cigarette papers and tubes, and<page identifier="/us/stat/111/675">111 STAT. 675</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>before January 1, 2000, submits an application under subchapter B of chapter 52 of such Code to engage in such business, may, notwithstanding such subchapter B, continue to engage in such business pending final action on such application. Pending such final action, all provisions of such chapter 52 shall apply to such applicant in the same manner and to the same extent as if such applicant were a holder of a permit under such chapter 52 to engage in such business.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="j">(j)</num> <heading><inline class="smallCaps">Floor Stocks Taxes</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s5701">26 USC 5701 note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Imposition of tax</inline>.—</heading><chapeau>On tobacco products and cigarette note papers and tubes manufactured in or imported into the United States which are removed before any tax increase date, and held on such date for sale by any person, there is hereby imposed a tax in an amount equal to the excess of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>the tax which would be imposed under section 5701 of the Internal Revenue Code of 1986 on the article if the article had been removed on such date, over</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>the prior tax (if any) imposed under section 5701 of such Code on such article.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Authority to exempt cigarettes held in vending machines</inline>.—</heading><content><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote>To the extent provided in regulations prescribed by the Secretary, no tax shall be imposed by paragraph (1) on cigarettes held for retail sale on any tax increase date, by any person in any vending machine. If the Secretary provides such a benefit with respect to any person, the Secretary may reduce the $500 amount in paragraph (3) with respect to such person.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Credit against tax</inline>.—</heading><content>Each person shall be allowed as a credit against the taxes imposed by paragraph (1) an amount equal to $500. Such credit shall not exceed the amount of taxes imposed by paragraph (1) on any tax increase date, for which such person is liable.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Liability for tax and method of payment</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">Liability for tax</inline>.—</heading><content>A person holding cigarettes on any tax increase date, to which any tax imposed by paragraph (1) applies shall be liable for such tax.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Method of payment</inline>.—</heading><content>The tax imposed by paragraph<sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote> (1) shall be paid in such manner as the Secretary shall prescribe by regulations.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <heading><inline class="smallCaps">Time for payment</inline>.—</heading><content>The tax imposed by paragraph (1) shall be paid on or before April 1 following any tax increase date.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <heading><inline class="smallCaps">Articles in foreign trade zones</inline>.—</heading><chapeau>Notwithstanding the Act of June 18, 1934 (48 Stat. 998, 19 U.S.C. 81a) and any other provision of law, any article which is located in a foreign trade zone on any tax increase date, shall be subject to the tax imposed by paragraph (1) if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>internal revenue taxes have been determined, or customs duties liquidated, with respect to such article before such date pursuant to a request made under the 1st proviso of section 3(a) of such Act, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>such article is held on such date under the supervision of a customs officer pursuant to the 2d proviso of such section 3(a).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this subsection—<page identifier="/us/stat/111/676">111 STAT. 676</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Terms used in this subsection which are also used in section 5702 of the Internal Revenue Code of 1986 shall have the respective meanings such terms have in such section, as amended by this Act.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Tax increase date</inline>.—</heading><content>The term “tax increase date” means January 1, 2000, and January 1, 2002.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <heading><inline class="smallCaps">Secretary</inline>.—</heading><content>The term “Secretary” means the Secretary of the Treasury or the Secretary’s delegate.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> <heading><inline class="smallCaps">Controlled groups</inline>.—</heading><content>Rules similar to the rules of section 5061(e)(3) of such Code shall apply for purposes of this subsection.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8)</num> <heading><inline class="smallCaps">Other laws applicable</inline>.—</heading><content>All provisions of law, including penalties, applicable with respect to the taxes imposed by section 5701 of such Code shall, insofar as applicable and not inconsistent with the provisions of this subsection, apply to the floor stocks taxes imposed by paragraph (1), to the same extent as if such taxes were imposed by such section 5701. The Secretary may treat any person who bore the ultimate burden of the tax imposed by paragraph (1) as the person to whom a credit or refund under such provisions may be allowed or made.</content></paragraph> </subsection> </section> <section> <num value="9303">SEC. 9303.</num> <heading>LEASE OF EXCESS STRATEGIC PETROLEUM RESERVE CAPACITY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Amendment</inline>.—</heading><content>Part B of title I of the Energy Policy and Conservation Act (42 U.S.C. 6231 et seq.) is amended by adding at the end the following: <quotedContent> <level> <heading class="centered">“<inline class="smallCaps">use of underutilized facilities</inline></heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s6247a">42 USC 6247a</ref>.</p></sidenote> <section> <num value="168">“<inline class="smallCaps">Sec</inline>. 168.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Authority</inline>.—</heading><content>Notwithstanding any other provision of this title, the Secretary, by lease or otherwise, for any term and under such other conditions as the Secretary considers necessary or appropriate, may store in underutilized Strategic Petroleum Reserve facilities petroleum product owned by a foreign government or its representative. Petroleum products stored under this section are not part of the Strategic Petroleum Reserve and may be exported without license from the United States.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Protection of Facilities</inline>.—</heading><content>All agreements entered into pursuant to subsection (a) shall contain provisions providing for fees to fully compensate the United States for all related costs of storage and removals of petroleum products (including the proportionate cost of replacement facilities necessitated as a result of any withdrawals) incurred by the United States on behalf of the foreign government or its representative.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Access to Stored Oil</inline>.—</heading><content>The Secretary shall ensure that agreements to store petroleum products for foreign governments or their representatives do not impair the ability of the United States to withdraw, distribute, or sell petroleum products from the Strategic Petroleum Reserve in response to an energy emergency or to the obligations of the United States under the Agreement on an International Energy Program.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Availability of Funds</inline>.—</heading><content>Funds collected through the leasing of Strategic Petroleum Reserve facilities authorized by subsection (a) after September 30, 2007, shall be used by the Secretary of Energy without further appropriation for the purchase of petroleum products for the Strategic Petroleum Reserve.”.<page identifier="/us/stat/111/677">111 STAT. 677</page></content> </subsection> </section> </level> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Table of Contents Amendment</inline>.—</heading><content>The table of contents of part B of title I of the Energy Policy and Conservation Act is amended by adding at the end the following: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 168.</designator> <label>Use of underutilized facilities.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="9304">SEC. 9304.</num> <heading>IDENTIFICATION OF LIMITED TAX BENEFITS SUBJECT TO LINE ITEM VETO.</heading> <content>Section 1021(a)(3) of the Congressional Budget Act of 1974 shall only apply to 3306(c)(21) of the Internal Revenue Code of 1986 (as added by section 5406 of this Act).</content> </section> <section> <num value="9305">SEC. 9305.</num> <heading>PAYMENT OF BENEFITS IN APPROPRIATE FISCAL YEAR.</heading> <content>Section 5120(e) of title 38, United States Code, shall not apply to benefit payments otherwise payable on October 1, 2000.</content> </section> </subtitle> <num value="X">TITLE X—</num><heading>BUDGET ENFORCEMENT AND PROCESS PROVISIONS</heading><sidenote><p class="indent0 firstIndent0 fontsize8">Budget Enforcement Act of 1997.</p><p class="indent0 firstIndent0 fontsize8">President.</p></sidenote> <section> <num value="10001">SEC. 10001.</num> <heading>SHORT TITLE; TABLE OF CONTENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Short Title</inline>.—</heading><content>This title may be cited as the “Budget Enforcement Act of 1997”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Table of Contents</inline>.—</heading><content>The table of contents for this title is as follows: <toc> <referenceItem role="section"><designator>Sec. 10001.</designator> <label>Short title; table of contents.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle A—</designator><label>Amendments to the Congressional Budget and Impoundment Control Act of 1974</label></referenceItem> <referenceItem role="section"><designator>Sec. 10101.</designator> <label>Amendment to section 3.</label></referenceItem> <referenceItem role="section"><designator>Sec. 10102.</designator> <label>Amendments to section 201.</label></referenceItem> <referenceItem role="section"><designator>Sec. 10103.</designator> <label>Amendments to section 202.</label></referenceItem> <referenceItem role="section"><designator>Sec. 10104.</designator> <label>Amendment to section 300.</label></referenceItem> <referenceItem role="section"><designator>Sec. 10105.</designator> <label>Amendments to section 301.</label></referenceItem> <referenceItem role="section"><designator>Sec. 10106.</designator> <label>Amendments to section 302.</label></referenceItem> <referenceItem role="section"><designator>Sec. 10107.</designator> <label>Amendments to section 303.</label></referenceItem> <referenceItem role="section"><designator>Sec. 10108.</designator> <label>Amendment to section 304.</label></referenceItem> <referenceItem role="section"><designator>Sec. 10109.</designator> <label>Amendment to section 305.</label></referenceItem> <referenceItem role="section"><designator>Sec. 10110.</designator> <label>Amendments to section 308.</label></referenceItem> <referenceItem role="section"><designator>Sec. 10111.</designator> <label>Amendments to section 310.</label></referenceItem> <referenceItem role="section"><designator>Sec. 10112.</designator> <label>Amendments to section 311.</label></referenceItem> <referenceItem role="section"><designator>Sec. 10113.</designator> <label>Amendment to section 312.</label></referenceItem> <referenceItem role="section"><designator>Sec. 10114.</designator> <label>Adjustments.</label></referenceItem> <referenceItem role="section"><designator>Sec. 10115.</designator> <label>Effect of adoption of a special order of business in the House of Representatives.</label></referenceItem> <referenceItem role="section"><designator>Sec. 10116.</designator> <label>Amendment to section 401 and repeal of section 402.</label></referenceItem> <referenceItem role="section"><designator>Sec. 10117.</designator> <label>Amendments to title V.</label></referenceItem> <referenceItem role="section"><designator>Sec. 10118.</designator> <label>Repeal of title VI.</label></referenceItem> <referenceItem role="section"><designator>Sec. 10119.</designator> <label>Amendments to section 904.</label></referenceItem> <referenceItem role="section"><designator>Sec. 10120.</designator> <label>Repeal of sections 905 and 906.</label></referenceItem> <referenceItem role="section"><designator>Sec. 10121.</designator> <label>Amendments to sections 1022 and 1024.</label></referenceItem> <referenceItem role="section"><designator>Sec. 10122.</designator> <label>Amendment to section 1026.</label></referenceItem> <referenceItem role="section"><designator>Sec. 10123.</designator> <label>Senate task force on consideration of budget measures.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle B—</designator><label>Amendments to the Balanced Budget and Emergency Deficit Control Act of 1985</label></referenceItem> <referenceItem role="section"><designator>Sec. 10201.</designator> <label>Purpose.</label></referenceItem> <referenceItem role="section"><designator>Sec. 10202.</designator> <label>General statement and definitions.</label></referenceItem> <referenceItem role="section"><designator>Sec. 10203.</designator> <label>Enforcing discretionary spending limits.</label></referenceItem> <referenceItem role="section"><designator>Sec. 10204.</designator> <label>Violent crime reduction spending.</label></referenceItem> <referenceItem role="section"><designator>Sec. 10205.</designator> <label>Enforcing pay-as-you-go.</label></referenceItem> <referenceItem role="section"><designator>Sec. 10206.</designator> <label>Reports and orders.</label></referenceItem> <referenceItem role="section"><designator>Sec. 10207.</designator> <label>Exempt programs and activities.</label></referenceItem> <referenceItem role="section"><designator>Sec. 10208.</designator> <label>General and special sequestration rules.<page identifier="/us/stat/111/678">111 STAT. 678</page></label></referenceItem> <referenceItem role="section"><designator>Sec. 10209.</designator> <label>The baseline.</label></referenceItem> <referenceItem role="section"><designator>Sec. 10210.</designator> <label>Technical correction.</label></referenceItem> <referenceItem role="section"><designator>Sec. 10211.</designator> <label>Judicial review.</label></referenceItem> <referenceItem role="section"><designator>Sec. 10212.</designator> <label>Effective date.</label></referenceItem> <referenceItem role="section"><designator>Sec. 10213.</designator> <label>Reduction of preexisting balances and exclusion of effects of this Act from paygo scorecard.</label></referenceItem> </toc> </content></subsection> </section> <subtitle> <num value="A">Subtitle A—</num><heading>Amendments to the Congressional Budget and Impoundment Control Act of 1974</heading> <section> <num value="10101">SEC. 10101.</num> <heading>AMENDMENT TO SECTION 3.</heading> <content>Section 3(9) of the Congressional Budget and Impoundment <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s622">2 USC 622</ref>.</p></sidenote>Control Act of 1974 is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="9">“(9)</num> <chapeau>The term ‘entitlement authority’ means—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the authority to make payments (including loans and grants), the budget authority for which is not provided for in advance by appropriation Acts, to any person or government if, under the provisions of the law containing that authority, the United States is obligated to make such payments to persons or governments who meet the requirements established by that law; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the food stamp program.”.</content></subparagraph> </paragraph> </quotedContent> </content></section> <section> <num value="10102">SEC. 10102.</num> <heading>AMENDMENTS TO SECTION 201.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Term of Office</inline>.—</heading><content>The first sentence of section 201(a)(3) <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s601">2 USC 601</ref>.</p></sidenote>of the Congressional Budget Act of 1974 is amended to read as follows: “The term of office of the Director shall be 4 years and shall expire on January 3 of the year preceding each Presidential election.”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming change</inline>.—</heading><content>Section 201(e) of the Congressional Budget Act of 1974 is amended by inserting “<quotedText>and</quotedText>” before “the Library”, by striking “<quotedText>and the Office of Technology Assessment,</quotedText>”, by inserting “<quotedText>and</quotedText>” before “the Librarian”, and by striking “<quotedText>, and the Technology Assessment Board</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Redesignation of Executed Provision</inline>.—</heading><content>Section 201 of the Congressional Budget Act of 1974 is amended by redesignating subsection (g) (relating to revenue estimates) as subsection (f).</content> </subsection> </section> <section> <num value="10103">SEC. 10103.</num> <heading>AMENDMENTS TO SECTION 202.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Assistance to Budget Committees</inline>.—</heading><content>The first sentence <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s602">2 USC 602</ref>.</p></sidenote>of section 202(a) of the Congressional Budget Act of 1974 is amended by inserting “<quotedText>primary</quotedText>” before “duty”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Elimination of Executed Provision</inline>.—</heading><content>Section 202 of the Congressional Budget Act of 1974 is amended by striking subsection (e) and by redesignating subsections (f), (g), and (h) as subsections (e), (f), and (g), respectively.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Reporting Requirement</inline>.—</heading><chapeau>The first sentence of section 202(e)(1) of the Congressional Budget Act of 1974 (as redesignated) is amended by—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>striking “<quotedText>and</quotedText>” before “(B)”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>inserting before the period the following: “, and (C) a statement of the levels of budget authority and outlays for each program assumed to be extended in the baseline, as provided in section 257(b)(2)(A) and for excise taxes assumed to be extended under section 257(b)(2)(C) of the Balanced Budget and Emergency Deficit Control Act of 1985”.<page identifier="/us/stat/111/679">111 STAT. 679</page></content></paragraph> </subsection> </section> <section> <num value="10104">SEC. 10104.</num> <heading>AMENDMENT TO SECTION 300.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Timetable</inline>.—</heading><content>The item relating to February 25 in the timetable set forth in section 300 of the Congressional Budget Act of 1974 is amended by striking “<quotedText>February 25</quotedText>” and inserting “<quotedText>Not<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s631">2 USC 631</ref>.</p></sidenote> later than 6 weeks after President submits budget</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><paragraph class="inline"><num value="1">(1)</num> <content>Clause 4(g) of rule X of the Rules of the House of Representatives is amended by striking “<quotedText>on or before February 25 of each year</quotedText>” and inserting “<quotedText>not later than 6 weeks after the President submits his budget</quotedText>”.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <content>Clause 3(c) of rule XLVIII of the Rules of the House of Representatives is amended by striking “<quotedText>On or before March 15 of each year</quotedText>” and inserting “<quotedText>Within 6 weeks after the President submits a budget under section 1105(a) of title 31, United States Code</quotedText>” and by striking “<quotedText>section 301(c)</quotedText>” and inserting “<quotedText>section 301(d)</quotedText>”.</content></paragraph> </subsection> </section> <section> <num value="10105">SEC. 10105.</num> <heading>AMENDMENTS TO SECTION 301.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Terms of Budget Resolutions</inline>.—</heading><content>Section 301(a) of the Congressional Budget Act of 1974 is amended by striking “<quotedText>, and<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s632">2 USC 632</ref>.</p></sidenote> planning levels for each of the two ensuing fiscal years,</quotedText>” and inserting “<quotedText>and for at least each of the 4 ensuing fiscal years</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Contents of Budget Resolutions</inline>.—</heading><content>Paragraphs (1) and (4) of section 301(a) of the Congressional Budget Act of 1974 are amended by striking “<quotedText>, budget outlays, direct loan obligations, and primary loan guarantee commitments</quotedText>” each place it appears and inserting “<quotedText>and outlays</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Additional Matters</inline>.—</heading><chapeau>Section 301(b) of the Congressional Budget Act of 1974 is amended by—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>striking paragraph (7) and inserting the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <content>set forth procedures in the Senate whereby committee allocations, aggregates, and other levels can be revised for legislation if that legislation would not increase the deficit, or would not increase the deficit when taken with other legislation enacted after the adoption of the resolution, for the first fiscal year or the total period of fiscal years covered by the resolution;”;</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in paragraph 8, striking the period and inserting “<quotedText>; and</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>adding the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="9">“(9)</num> <content>set forth direct loan obligation and primary loan guarantee commitment levels.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Views and Estimates</inline>.—</heading><content>The first sentence of section 301(d) of the Congressional Budget Act of 1974 is amended by inserting “<quotedText>or at such time as may be requested by the Committee on the Budget,</quotedText>” after “Code,”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Hearings and Report</inline>.—</heading><chapeau>Section 301(e) of the Congressional Budget Act of 1974 is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>In developing</quotedText>” and inserting the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In developing”; and</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking the sentence beginning with “The report accompanying” and all that follows through the end of the subsection and inserting the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Required contents of report</inline>.—</heading><chapeau>The report accompanying the resolution shall include—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>a comparison of the levels of total new budget authority, total outlays, total revenues, and the surplus or deficit for each fiscal year set forth in the resolution <page identifier="/us/stat/111/680">111 STAT. 680</page>with those requested in the budget submitted by the President;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>with respect to each major functional category, an estimate of total new budget authority and total outlays, with the estimates divided between discretionary and mandatory amounts;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>the economic assumptions that underlie each of the matters set forth in the resolution and any alternative economic assumptions and objectives the committee considered;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>information, data, and comparisons indicating the manner in which, and the basis on which, the committee determined each of the matters set forth in the resolution;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>the estimated levels of tax expenditures (the tax expenditures budget) by major items and functional categories for the President’s budget and in the resolution; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>allocations described in section 302(a).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Additional contents of report</inline>.—</heading><chapeau>The report accompanying the resolution may include—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>a statement of any significant changes in the proposed levels of Federal assistance to State and local governments;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>an allocation of the level of Federal revenues recommended in the resolution among the major sources of such revenues;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>information, data, and comparisons on the share of total Federal budget outlays and of gross domestic product devoted to investment in the budget submitted by the President and in the resolution;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>the assumed levels of budget authority and outlays for public buildings, with a division between amounts for construction and repair and for rental payments; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>other matters, relating to the budget and to fiscal policy, that the committee deems appropriate.”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Social Security Corrections</inline>.—</heading><paragraph class="inline"><num value="1">(1)</num> <chapeau>Section 301(i) of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s632">2 USC 632</ref>.</p></sidenote>Congressional Budget Act of 1974 is amended by—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>inserting “<quotedText><inline class="smallCaps">Social Security Point of Order</inline>.—</quotedText>” after “(i)”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>striking “<quotedText>as reported to the Senate</quotedText>” and inserting “<quotedText>(or amendment, motion, or conference report on the resolution)</quotedText>”; and</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <content>Section 22 of House Concurrent Resolution 218 (103d Congress)<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/108/5092">108 Stat. 5092</ref></p></sidenote> is repealed.</content></paragraph> </subsection> </section> <section> <num value="10106">SEC. 10106.</num> <heading>AMENDMENTS TO SECTION 302.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Allocations and Suballocations</inline>.—</heading><content>Section 302 of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s633">2 USC 633</ref>.</p></sidenote>Congressional Budget Act of 1974 is amended by striking subsections (a) and (b) and inserting the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Committee Spending Allocations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Allocation among committees</inline>.—</heading><chapeau>The joint explanatory statement accompanying a conference report on a concurrent resolution on the budget shall include an allocation, consistent with the resolution recommended in the conference report, of the levels for the first fiscal year of the resolution, for at least each of the ensuing 4 fiscal years, and a total <page identifier="/us/stat/111/681">111 STAT. 681</page>for that period of fiscal years (except in the case of the Committee on Appropriations only for the fiscal year of that resolution) of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>total new budget authority; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>total outlays;</content></subparagraph> <continuation class="indent0 fontsize10">among each committee of the House of Representatives or the Senate that has jurisdiction over legislation providing or creating such amounts.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">No double counting</inline>.—</heading><content>In the House of Representatives, any item allocated to one committee may not be allocated to another committee.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Further division of amounts</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In the senate</inline>.—</heading><content>In the Senate, the amount allocated to the Committee on Appropriations shall be further divided among the categories specified in section 250(c)(4) of the Balanced Budget and Emergency Deficit Control Act of 1985 and shall not exceed the limits for each category set forth in section 251(c) of that Act.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">In the house</inline>.—</heading><chapeau>In the House of Representatives, the amounts allocated to each committee for each fiscal year, other than the Committee on Appropriations, shall be further divided between amounts provided or required by law on the date of filing of that conference report and amounts not so provided or required. The amounts allocated to the Committee on Appropriations shall be further divided—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>between discretionary and mandatory amounts or programs, as appropriate; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>consistent with the categories specified in section 250(c)(4) of the Balanced Budget and Emergency Deficit Control Act of 1985.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Amounts not allocated</inline>.—</heading><content>In the House of Representatives or the Senate, if a committee receives no allocation of new budget authority or outlays, that committee shall be deemed to have received an allocation equal to zero for new budget authority or outlays.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Adjusting allocation of discretionary spending in the house of representatives</inline>.—</heading><subparagraph class="inline"><num value="A">(A)</num> <content>If a concurrent resolution on the budget is not adopted by April 15, the chairman of the Committee on the Budget of the House of Representatives shall submit to the House, as soon as practicable, an allocation under paragraph (1) to the Committee on Appropriations consistent with the discretionary spending levels in the most recently agreed to concurrent resolution on the budget for the appropriate fiscal year covered by that resolution.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B)</num> <content>As soon as practicable after an allocation under paragraph (1) is submitted under this section, the Committee on Appropriations shall make suballocations and report those suballocations to the House of Representatives.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Suballocations by Appropriations Committees</inline>.—</heading><content>As soon as practicable after a concurrent resolution on the budget is agreed to, the Committee on Appropriations of each House (after consulting with the Committee on Appropriations of the other House) shall suballocate each amount allocated to it for the budget year under subsection (a) among its subcommittees. Each Committee on Appropriations shall promptly report to its House suballocations made or revised under this subsection. The Committee on <page identifier="/us/stat/111/682">111 STAT. 682</page>Appropriations of the House of Representatives shall further divide among its subcommittees the divisions made under subsection (a)(3)(B) and promptly report those divisions to the House.”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Point of Order</inline>.—</heading><content>Section 302(c) of the Congressional <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s633">2 USC 633</ref>.</p></sidenote>Budget Act of 1974 is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Point of Order</inline>.—</heading><content>After the Committee on Appropriations has received an allocation pursuant to subsection (a) for a fiscal year, it shall not be in order in the House of Representatives or the Senate to consider any bill, joint resolution, amendment, motion, or conference report within the jurisdiction of that committee providing new budget authority for that fiscal year, until that committee makes the suballocations required by subsection (b).”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Enforcement of Point of Order</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In the house</inline>.—</heading><chapeau>Section 302(f)(1) of the Congressional Budget Act of 1974 is amended by—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>striking “<quotedText>providing new budget authority for such fiscal year or new entitlement authority effective during such fiscal year</quotedText>” and inserting “<quotedText>providing new budget authority for any fiscal year</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>striking “<quotedText>appropriate allocation made pursuant to subsection (b)</quotedText>” and all that follows through “exceeded.” and inserting “<quotedText>applicable allocation of new budget authority made under subsection (a) or (b) for the first fiscal year or the total of fiscal years to be exceeded.</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">In the senate</inline>.—</heading><content>Section 302(f)(2) of the Congressional Budget Act of 1974 is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">In the senate</inline>.—</heading><chapeau>After a concurrent resolution on the budget is agreed to, it shall not be in order in the Senate to consider any bill, joint resolution, amendment, motion, or conference report that would cause—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>in the case of any committee except the Committee on Appropriations, the applicable allocation of new budget authority or outlays under subsection (a) for the first fiscal year or the total of fiscal years to be exceeded; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>in the case of the Committee on Appropriations, the applicable suballocation of new budget authority or outlays under subsection (b) to be exceeded.”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <content>Pay-As-You-Go Exception In The House.—Section 302(g) of the Congressional Budget Act of 1974 is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Pay-As-You-Go Exception in the House</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><subparagraph class="inline"><num value="A">(A)</num> <chapeau>Subsection (c)(1) and, after April 15, section 303(a) shall not apply to any bill or joint resolution, as reported, amendment thereto, or conference report thereon if, for each fiscal year covered by the most recently agreed to concurrent resolution on the budget—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the enactment of that bill or resolution as reported;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the adoption and enactment of that amendment; or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>the enactment of that bill or resolution in the form recommended in that conference report,</content></clause> <continuation class="indent0 fontsize10">would not increase the deficit, and, if the sum of any revenue increases provided in legislation already enacted during the current session (when added to revenue increases, if any, in excess of any outlay increase provided by the legislation proposed for consideration) is at least as great as the sum of the amount, if any, by which the aggregate level of Federal <page identifier="/us/stat/111/683">111 STAT. 683</page>revenues should be increased as set forth in that concurrent resolution and the amount, if any, by which revenues are to be increased pursuant to pay-as-you-go procedures under section 301(b)(8), if included in that concurrent resolution.</continuation> </subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B)</num> <chapeau>Section 311(a), as that section applies to revenues, shall not apply to any bill, joint resolution, amendment thereto, or conference report thereon if, for each fiscal year covered by the most recently agreed to concurrent resolution on the budget—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the enactment of that bill or resolution as reported;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the adoption and enactment of that amendment; or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>the enactment of that bill or resolution in the form recommended in that conference report,</content></clause> <continuation class="indent0 fontsize10">would not increase the deficit, and, if the sum of any outlay reductions provided in legislation already enacted during the current session (when added to outlay reductions, if any, in excess of any revenue reduction provided by the legislation proposed for consideration) is at least as great as the sum of the amount, if any, by which the aggregate level of Federal outlays should be reduced as required by that concurrent resolution and the amount, if any, by which outlays are to be reduced pursuant to pay-as-you-go procedures under section 301(b)(8), if included in that concurrent resolution.</continuation> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Revised allocations</inline>.—</heading><subparagraph class="inline"><num value="A">(A)</num> <content>As soon as practicable after Congress agrees to a bill or joint resolution that would have been subject to a point of order under subsection (f)(1) but for the exception provided in paragraph (1)(A) or would have been subject to a point of order under section 311(a) but for the exception provided in paragraph (1)(B), the chairman of the committee on the Budget of the House of Representatives shall file with the House appropriately revised allocations under section 302(a) and revised functional levels and budget aggregates to reflect that bill.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B)</num> <content>Such revised allocations, functional levels, and budget aggregates shall be considered for the purposes of this Act as allocations, functional levels, and budget aggregates contained in the most recently agreed to concurrent resolution on the budget.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> </section> <section> <num value="10107">SEC. 10107.</num> <heading>AMENDMENTS TO SECTION 303.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 303 of the Congressional Budget Act of 1974 is amended to read as follows:<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s634">2 USC 634</ref>.</p></sidenote> <quotedContent> <level> <heading class="centered">“<inline class="smallCaps">concurrent resolution on the budget must be adopted before budget—related legislation is considered</inline></heading> <section> <num value="303">“<inline class="smallCaps">Sec</inline>. 303.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Until the concurrent resolution on the budget for a fiscal year has been agreed to, it shall not be in order in the House of Representatives, with respect to the first fiscal year covered by that resolution, or the Senate, with respect to any fiscal year covered by that resolution, to consider any bill or joint resolution, amendment or motion thereto, or conference report thereon that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>first provides new budget authority for that fiscal year;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>first provides an increase or decrease in revenues during that fiscal year;<page identifier="/us/stat/111/684">111 STAT. 684</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>provides an increase or decrease in the public debt limit to become effective during that fiscal year;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>in the Senate only, first provides new entitlement authority for that fiscal year; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>in the Senate only, first provides for an increase or decrease in outlays for that fiscal year.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Exceptions in the House</inline>.—</heading><chapeau>In the House of Representatives, subsection (a) does not apply—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num><subparagraph class="inline"><num value="A">(A)</num> <content>to any bill or joint resolution, as reported, providing advance discretionary new budget authority that first becomes available for the first or second fiscal year after the budget year; or</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B)</num> <content>to any bill or joint resolution, as reported, first increasing or decreasing revenues in a fiscal year following the fiscal year to which the concurrent resolution applies;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>after May 15, to any general appropriation bill or amendment thereto; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>to any bill or joint resolution unless it is reported by a committee.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Application to Appropriation Measures in the Senate</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Until the concurrent resolution on the budget for a fiscal year has been agreed to and an allocation has been made to the Committee on Appropriations of the Senate under section 302(a) for that year, it shall not be in order in the Senate to consider any appropriation bill or joint resolution, amendment or motion thereto, or conference report thereon for that year or any subsequent year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Exception</inline>.—</heading><content>Paragraph (1) does not apply to appropriations legislation making advance appropriations for the first or second fiscal year after the year the allocation referred to in that paragraph is made.”.</content></paragraph> </subsection> </section> </level> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>The item relating to section 303 in the table of contents set forth in section 1(b) of the Congressional Budget and Impoundment Control Act of 1974 is amended to read as follows: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 303.</designator> <label>Concurrent resolution on the budget must be adopted before budget-related legislation is considered.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="10108">SEC. 10108.</num> <heading>AMENDMENT TO SECTION 304.</heading> <chapeau><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s635">2 USC 635</ref>.</p></sidenote>Section 304 of the Congressional Budget Act of 1974 is amended by—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>striking “<quotedText>(a) <inline class="smallCaps">In General</inline>.—</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>striking subsection (b).</content></paragraph> </section> <section> <num value="10109">SEC. 10109.</num> <heading>AMENDMENT TO SECTION 305.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Budget Act</inline>.—</heading><content>Section 305(a)(1) of the Congressional Budget <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s636">2 USC 636</ref>.</p></sidenote>Act of 1974 is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>When a concurrent resolution on the budget has been reported by the Committee on the Budget of the House of Representatives and has been referred to the appropriate calendar of the House, it shall be in order on any day thereafter, subject to clause 2(1)(6) of rule XI of the Rules of the House of Representatives, to move to proceed to the consideration of the concurrent resolution. The motion is highly privileged and is not debatable. An amendment to the motion is not <page identifier="/us/stat/111/685">111 STAT. 685</page>in order and it is not in order to move to reconsider the vote by which the motion is agreed to or disagreed to.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendment in the House</inline>.—</heading><content>The first sentence of clause 2(l)(6) of rule XI of the Rules of the House of Representatives is amended by striking or as provided by section 305(a)(1)” and all that follows thereafter through “under that section)”.</content> </subsection> </section> <section> <num value="10110">SEC. 10110.</num> <heading>AMENDMENTS TO SECTION 308.</heading> <chapeau>Section 308 of the Congressional Budget Act of 1974 is amended—<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s639">2 USC 639</ref>.</p></sidenote></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num><subparagraph class="inline"><num value="A">(A)</num> <content>in the heading of subsection (a), by striking “<quotedText>, <inline class="smallCaps">New Spending Authority, or New Credit Authority</inline>,</quotedText>”;</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">(B)</num> <content>in subsection (a)(1), by striking subparagraph (B) and by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C), respectively;</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">(C)</num> <content>in subsection (a)(1)(B) (as redesignated), by striking “<quotedText>spending authority</quotedText>” through “commitments” and inserting “<quotedText>revenues, or tax expenditures</quotedText>”; and</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="D">(D)</num> <content>in paragraphs (1) and (2) of subsection (a), by striking “<quotedText>, new spending authority described in section 401(c)(2), or new credit authority,</quotedText>” each place it appears;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subsection (b)(1), by striking “<quotedText>, new spending authority described in section 401(c)(2), or new credit authority,</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>in subsection (c), by inserting “<quotedText>and</quotedText>” after the semicolon at the end of paragraph (3), by striking “<quotedText>; and</quotedText>” at the end of paragraph (4) and inserting a period; and by striking paragraph (5); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>by inserting “<quotedText>joint</quotedText>” before “resolution” each place it appears except when “concurrent”, “such”, or “reconciliation” precedes “resolution” and, in subsection (b)(1), by inserting “<quotedText>joint</quotedText>” before “resolutions” each place it appears.</content></paragraph> </section> <section> <num value="10111">SEC. 10111.</num> <heading>AMENDMENTS TO SECTION 310.</heading> <chapeau>Section 310(c)(1)(A) of the Congressional Budget Act of 1974<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s641">2 USC 641</ref>.</p></sidenote> is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>20 percent</quotedText>” the first place it appears and all that follows thereafter through “, and” and inserting the following: <quotedContent> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>in the Senate, 20 percent of the total of the amounts of the changes such committee was directed to make under paragraphs (1) and (2) of such subsection; or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>in the House of Representatives, 20 percent of the sum of the absolute value of the changes the committee was directed to make under paragraph (1) and the absolute value of the changes the committee was directed to make under paragraph (2); and”; and</content></subclause> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<quotedText>20 percent</quotedText>” the second place it appears and all that follows thereafter through “; and” and inserting the following: <quotedContent> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>in the Senate, 20 percent of the total of the amounts of the changes such committee was directed to make under paragraphs (1) and (2) of such subsection; or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>in the House of Representatives, 20 percent of the sum of the absolute value of the changes the committee was directed to make under paragraph (1) <page identifier="/us/stat/111/686">111 STAT. 686</page>and the absolute value of the changes the committee was directed to make under paragraph (2); and”.</content></subclause> </quotedContent> </content></paragraph> </section> <section> <num value="10112">SEC. 10112.</num> <heading>AMENDMENTS TO SECTION 311.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 311 of the Congressional Budget Act <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s642">2 USC 642</ref>.</p></sidenote>of 1974 is amended to read as follows: <quotedContent> <level> <heading class="centered">“<inline class="smallCaps">budget-related legislation must be within appropriate levels</inline></heading> <section> <num value="311">“SEC. 311.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Enforcement of Budget Aggregates</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In the house of representatives</inline>.—</heading><chapeau>Except as provided by subsection (c), after the Congress has completed action on a concurrent resolution on the budget for a fiscal year, it shall not be in order in the House of Representatives to consider any bill, joint resolution, amendment, motion, or conference report providing new budget authority or reducing revenues, if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the enactment of that bill or resolution as reported;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the adoption and enactment of that amendment; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>the enactment of that bill or resolution in the form recommended in that conference report;</content></subparagraph> <continuation class="indent0 fontsize10">would cause the level of total new budget authority or total outlays set forth in the applicable concurrent resolution on the budget for the first fiscal year to be exceeded, or would cause revenues to be less than the level of total revenues set forth in that concurrent resolution for the first fiscal year or for the total of that first fiscal year and the ensuing fiscal years for which allocations are provided under section 302(a), except when a declaration of war by the Congress is in effect.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">In the senate</inline>.—</heading><chapeau>After a concurrent resolution on the budget is agreed to, it shall not be in order in the Senate to consider any bill, joint resolution, amendment, motion, or conference report that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>would cause the level of total new budget authority or total outlays set forth for the first fiscal year in the applicable resolution to be exceeded; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>would cause revenues to be less than the level of total revenues set forth for that first fiscal year or for the total of that first fiscal year and the ensuing fiscal years in the applicable resolution for which allocations are provided under section 302(a).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Enforcement of social security levels in the senate</inline>.—</heading><content>After a concurrent resolution on the budget is agreed to, it shall not be in order in the Senate to consider any bill, joint resolution, amendment, motion, or conference report that would cause a decrease in social security surpluses or an increase in social security deficits relative to the levels set forth in the applicable resolution for the first fiscal year or for the total of that fiscal year and the ensuing fiscal years for which allocations are provided under section 302(a).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Social Security Levels</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>For purposes of subsection (a)(3), social security surpluses equal the excess of social security revenues over social security outlays in a fiscal year or years with such an excess and social security deficits equal the excess of social <page identifier="/us/stat/111/687">111 STAT. 687</page>security outlays over social security revenues in a fiscal year or years with such an excess.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Tax treatment</inline>.—</heading><content>For purposes of subsection (a)(3), no provision of any legislation involving a change in chapter 1 of the Internal Revenue Code of 1986 shall be treated as affecting the amount of social security revenues or outlays unless that provision changes the income tax treatment of social security benefits.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Exception in the House of Representatives</inline>.—</heading><chapeau>Subsection (a)(1) shall not apply in the House of Representatives to any bill, joint resolution, or amendment that provides new budget authority for a fiscal year or to any conference report on any such bill or resolution, it—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the enactment of that bill or resolution as reported;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the adoption and enactment of that amendment; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>the enactment of that bill or resolution in the form recommended in that conference report;</content></paragraph> <continuation class="indent0 fontsize10">would not cause the appropriate allocation of new budget authority made pursuant to section 302(a) for that fiscal year to be exceeded.".</continuation> </subsection> </section> </level> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Table of Contents</inline>.—</heading><content>The table of contents set forth in section 1(b) of the Congressional Budget and Impoundment Control Act of 1974 is amended by striking the item relating to section 311 and inserting the following: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 311.</designator> <label>Budget-related legislation must be within appropriate levels.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="10113">SEC. 10113.</num> <heading>AMENDMENT TO SECTION 312.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 312 of the Congressional Budget Act of 1974 is amended to read as follows:<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s643">2 USC 643</ref>.</p></sidenote> <quotedContent> <level> <heading class="centered">“<inline class="smallCaps">determinations and points of order</inline></heading> <section> <num value="312">“<inline class="smallCaps">Sec</inline>. 312.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Budget Committee Determinations</inline>.—</heading><content>For purposes of this title and title IV, the levels of new budget authority, outlays, direct spending, new entitlement authority, and revenues for a fiscal year shall be determined on the basis of estimates made by the Committee on the Budget of the House of Representatives or the Senate, as applicable.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Discretionary Spending Point of Order in the Senate</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as otherwise provided in this subsection, it shall not be in order in the Senate to consider any bill or resolution (or amendment, motion, or conference report on that bill or resolution) that would exceed any of the discretionary spending limits in section 251(c) of the Balanced Budget and Emergency Deficit Control Act of 1985.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Exceptions</inline>.—</heading><content>This subsection shall not apply if a declaration of war by the Congress is in effect or if a joint resolution pursuant to section 258 of the Balanced Budget and Emergency Deficit Control Act of 1985 has been enacted.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Maximum Deficit Amount Point of Order in the Senate</inline>.—</heading><chapeau>It shall not be in order in the Senate to consider any concurrent resolution on the budget for a fiscal year, or to consider any amendment to that concurrent resolution, or to consider a conference report on that concurrent resolution, if—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the level of total outlays for the first fiscal year set forth in that concurrent resolution or conference report exceeds; or<page identifier="/us/stat/111/688">111 STAT. 688</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the adoption of that amendment would result in a level of total outlays for that fiscal year that exceeds;</content></paragraph> <continuation class="indent0 fontsize10">the recommended level of Federal revenues for that fiscal year, by an amount that is greater than the maximum deficit amount, if any, specified in the Balanced Budget and Emergency Deficit Control Act of 1985 for that fiscal year.</continuation> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Timing of Points of Order in the Senate</inline>.—</heading><content>A point of order under this Act may not be raised against a bill, resolution, amendment, motion, or conference report while an amendment or motion, the adoption of which would remedy the violation of this Act, is pending before the Senate.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Points of Order in the Senate Against Amendments Between the Houses</inline>.—</heading><content>Each provision of this Act that establishes a point of order against an amendment also establishes a point of order in the Senate against an amendment between the Houses. If a point of order under this Act is raised in the Senate against an amendment between the Houses and the point of order is sustained, the effect shall be the same as if the Senate had disagreed to the amendment.</content> </subsection> <subparagraph class="indent2 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Effect of a Point of Order in the Senate</inline>.—</heading><content>In the Senate, if a point of order under this Act against a bill or resolution is sustained, the Presiding Officer shall then recommit the bill or resolution to the committee of appropriate jurisdiction for further consideration.”.</content> </subparagraph> </section> </level> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Technical and Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Section 313 of the Congressional Budget <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s644">2 USC 644</ref>.</p></sidenote>Act of 1974 is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>(c) When</quotedText>” and inserting “<quotedText>(d) <inline class="smallCaps">Conference Reports</inline>—When</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking subsection (e) and redesignating subsection (d) as subsection (e).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Table of contents</inline>.—</heading><content>The item relating to section 312 in the table of contents set forth in section 1(b) of the Congressional Budget and Impoundment Control Act of 1974 is amended by striking “<quotedText>Effect of points</quotedText>” and inserting “<quotedText>Determinations and points</quotedText>”.</content></paragraph> </subsection> </section> <section> <num value="10114">SEC. 10114.</num> <heading>ADJUSTMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Title III of the Congressional Budget Act of 1974 is amended by adding at the end the following new section: <quotedContent> <level> <heading class="centered">“<inline class="smallCaps">adjustments</inline></heading> <section> <num value="314">“<inline class="smallCaps">Sec</inline>. 314.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s645">2 USC 645</ref>.</p></sidenote> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Adjustments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>After the reporting of a bill or joint resolution, the offering of an amendment thereto, or the submission of a conference report thereon, the chairman of the Committee on the Budget of the House of Representatives or the Senate shall make the adjustments set forth in paragraph (2) for the amount of new budget authority in that measure (if that measure meets the requirements set forth in subsection (b)) and the outlays flowing from that budget authority.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Matters to be adjusted</inline>.—</heading><chapeau>The adjustments referred to in paragraph (1) are to be made to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the discretionary spending limits, if any, set forth in the appropriate concurrent resolution on the budget;<page identifier="/us/stat/111/689">111 STAT. 689</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the allocations made pursuant to the appropriate concurrent resolution on the budget pursuant to section 302(a); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>the budgetary aggregates as set forth in the appropriate concurrent resolution on the budget.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Amounts of Adjustments</inline>.—</heading><chapeau>The adjustment referred to in subsection (a) shall be—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>an amount provided and designated as an emergency requirement pursuant to section 251(b)(2)(A) or 252(e) of the Balanced Budget and Emergency Deficit Control Act of 1985;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>an amount provided for continuing disability reviews subject to the limitations in section 251(b)(2)(C) of that Act;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <chapeau>for any fiscal year through 2002, an amount provided that is the dollar equivalent of the Special Drawing Rights with respect to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>an increase in the United States quota as part of the International Monetary Fund Eleventh General Review of Quotas (United States Quota); or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>any increase in the maximum amount available to the Secretary of the Treasury pursuant to section 17 of the Bretton Woods Agreements Act, as amended from time to time (New Arrangements to Borrow);</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>an amount provided not to exceed $1,884,000,000 for the period of fiscal years 1998 through 2000 for arrearages for international organizations, international peacekeeping, and multilateral development banks; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <chapeau>an amount provided for an earned income tax credit compliance initiative but not to exceed—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>with respect to fiscal year 1998, $138,000,000 in new budget authority;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>with respect to fiscal year 1999, $143,000,000 in new budget authority;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>with respect to fiscal year 2000, $144,000,000 in new budget authority;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>with respect to fiscal year 2001, $145,000,000 in new budget authority; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>with respect to fiscal year 2002, $146,000,000 in new budget authority.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Application of Adjustments</inline>—</heading><chapeau>The adjustments made pursuant to subsection (a) for legislation shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>apply while that legislation is under consideration;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>take effect upon the enactment of that legislation; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>be published in the Congressional Record as soon as<sidenote><p class="indent0 firstIndent0 fontsize8">Congressional Record, publication.</p></sidenote> practicable.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Reporting Revised Suballocations</inline>.—</heading><content>Following any adjustment made under subsection (a), the Committees on Appropriations of the Senate and the House of Representatives may report appropriately revised suballocations under section 302(b) to carry out this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Definitions for CDRS</inline>.—</heading><chapeau>As used in subsection (b)(2)—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the term ‘continuing disability reviews’ shall have the same meaning as provided in section 251(b)(2)(C)(ii) of the Balanced Budget and Emergency Deficit Control Act of 1985; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the term ‘new budget authority’ shall have the same meaning as the term ‘additional new budget authority’ and <page identifier="/us/stat/111/690">111 STAT. 690</page>the term ‘outlays’ shall have the same meaning as ‘additional outlays’ in that section.”.</content></paragraph> </subsection> </section> </level> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Table of Contents</inline>.—</heading><content>The table of contents set forth in section 1(b) of the Congressional Budget and Impoundment Control Act of 1974 is amended by adding after the item relating to section 313 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 314.</designator> <label>Adjustments.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="10115">SEC. 10115.</num> <heading>EFFECT OF ADOPTION OF A SPECIAL ORDER OF BUSINESS IN THE HOUSE OF REPRESENTATIVES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Effect of Points of Order</inline>.—</heading><content>Title III of the Congressional Budget Act of 1974 is amended by adding after section 314 the following new section: <quotedContent> <level> <heading>“<inline class="smallCaps">effect of adoption of a special order of business in the house of representatives</inline></heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s645a">2 USC 645a</ref>.</p></sidenote> <section> <num value="315">“<inline class="smallCaps">Sec</inline>. 315.</num> <content class="inline">For purposes of a reported bill or joint resolution considered in the House of Representatives pursuant to a special order of business, the term ‘as reported’ in this title or title IV shall be considered to refer to the text made in order as an original bill or joint resolution for the purpose of amendment or to the text on which the previous question is ordered directly to passage, as the case may be.”.</content> </section> </level> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>The table of contents set forth in section 1(b) of the Congressional Budget and Impoundment Control Act of 1974 is amended by adding after the item relating to section 314 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 315.</designator> <label>Effect of adoption of a special order of business in the House of Representatives.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="10116">SEC. 10116.</num> <heading>AMENDMENT TO SECTION 401 AND REPEAL OF SECTION 402.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Section 401</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Controls</inline>.—</heading><chapeau>Section 401 of the Congressional Budget <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s651">2 USC 651</ref>.</p></sidenote>Act of 1974 is amended by—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>striking the heading and inserting the following: <quotedContent> <level> <heading class="centered">“<inline class="smallCaps">budget-related legislation not subject to appropriations</inline>”; and</heading> </level> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>striking subsection (a) and inserting the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Controls on Certain Budget-Related Legislation Not Subject to Appropriations</inline>.—</heading><chapeau>It shall not be in order in either the House of Representatives or the Senate to consider any bill or joint resolution (in the House of Representatives only, as reported), amendment, motion, or conference report that provides—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>new authority to enter into contracts under which the United States is obligated to make outlays;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>new authority to incur indebtedness (other than indebtedness incurred under chapter 31 of title 31 of the United States Code) for the repayment of which the United States is liable; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>new credit authority;</content></paragraph> <continuation class="indent0 fontsize10">unless that bill, joint resolution, amendment, motion, or conference report also provides that the new authority is to be effective for any fiscal year only to the extent or in the amounts provided in advance in appropriation Acts.”.<page identifier="/us/stat/111/691">111 STAT. 691</page></continuation> </subsection> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Point of order</inline>.—</heading><chapeau>Section 401(b) of the Congressional Budget Act of 1974 is amended—<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s651">2 USC 651.</ref></p></sidenote></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by inserting “<quotedText>new</quotedText>” before “entitlement” in the heading;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking paragraph (1) and inserting the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Point of order</inline>.—</heading><content>It shall not be in order in either the House of Representatives or the Senate to consider any bill or joint resolution (in the House of Representatives only, as reported), amendment, motion, or conference report that provides new entitlement authority that is to become effective during the current fiscal year.”; and</content></paragraph> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <chapeau>in paragraph (2)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by striking “<quotedText>new spending authority described in subsection (c)(2)(C)</quotedText>” and inserting “<quotedText>new entitlement authority</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking “<quotedText>of that House</quotedText>” and inserting “<quotedText>of the Senate or may then be referred to the Committee on Appropriations of the House, as the case may be,</quotedText>”.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><content>Section 401 of the Congressional Budget Act of 1974 is amended by striking subsection (c).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Exceptions</inline>.—</heading><chapeau>Section 401(d) of the Congressional Budget Act of 1974 is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in paragraph (1), by striking “<quotedText>new spending authority if the budget authority for outlays which result from such new spending authority is derived</quotedText>” and inserting “<quotedText>new authority described in those subsections if outlays from that new authority will flow</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking paragraph (2) and redesignating paragraph (3) as paragraph (2); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>in paragraph (2), as redesignated, by striking “<quotedText>new spending authority</quotedText>” and inserting “<quotedText>new authority described in those subsections</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <heading><inline class="smallCaps">Redesignation</inline>.—</heading><content>Subsection (d) of section 401 of the Congressional Budget Act of 1974 is redesignated as subsection (c).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading><subparagraph class="inline"><num value="A">(A)</num> <content>Clause 1(b)(4) of rule X of the Rules of the House of Representatives is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>The amount of new authority to enter into contracts under which the United States is obligated to make outlays, the budget authority for which is not provided in advance by appropriation Acts; new authority to incur indebtedness (other than indebtedness in incurred under chapter 31 of title 31 of the United States Code) for the repayment of which the United States is liable, the budget authority for which is not provided in advance by appropriation Acts; new entitlement authority as defined in section 3(9) of the Congressional Budget Act of 1974, including bills and resolutions (reported by other committees) which provide new entitlement authority as defined in section 3(9) of the Congressional Budget Act of 1974 and are referred to the committee under clause 4(a); authority to forego the collection by the United States of proprietary offsetting receipts, the budget authority for which is not provided in advance by appropriation Acts to offset such foregone receipts; and authority to make payments by the United States (including loans, grants, and payments from <page identifier="/us/stat/111/692">111 STAT. 692</page>revolving funds) other than those covered by this subparagraph, the budget authority for which is not provided in advance by appropriation Acts.”.</content></paragraph> </quotedContent> </content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">(B)</num> <content>Clause 4(a)(2) of rule X of the Rules of the House of Representatives is amended by striking “<quotedText>new spending authority described in section 401(c)(2)(C)</quotedText>” and inserting “<quotedText>new entitlement authority as defined in section 3(9)</quotedText>” and by striking “<quotedText>total amount of new spending authority</quotedText>” and inserting “<quotedText>total amount of new entitlement authority</quotedText>”.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">(C)</num> <content>Clause 2(1)(3) of rule XI of the Rules of the House of Representatives is amended by striking “<quotedText>new spending authority as described in section 401(c)(2)</quotedText>” and by inserting “<quotedText>new entitlement authority as defined in section 3(9)</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Repealer of Section 402</inline>.—</heading><content>Section 402 of the Congressional<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s652">2 USC 652</ref>.</p></sidenote> Budget Act of 1974 is repealed.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Redesignation</inline>.—</heading><content>Sections 403 through 407 of the Congressional Budget Act of 1974 are redesignated as sections <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s653–656">2 USC 653–656</ref>.</p></sidenote>402 through 406, respectively.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">GAO analysis</inline>.—</heading><content>Section 404 (as redesignated) of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s654">2 USC 654</ref>.</p></sidenote>Congressional Budget Act of 1974 is amended by striking “<quotedText>spending authority as described by section 401(c)(2) and which provide permanent appropriations,</quotedText>” and inserting “<quotedText>mandatory spending</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Table of contents</inline>.—</heading><chapeau>The table of contents set forth in section 1(b) of the Congressional Budget and Impoundment Control Act of 1974 is amended by—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>striking the item for section 401 and inserting the following: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 401.</designator> <label>Budget-related legislation not subject to appropriations.”; and</label></referenceItem> </toc> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>striking the item relating to section 402 and redesignating the items relating to sections 403 through 407 as the items relating to sections 402 through 406, respectively.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading><subparagraph class="inline"><num value="A">(A)</num> <content>Clause 2(1)(3) of rule XI of the Rules of the House of Representatives is amended by striking “<quotedText>section 403</quotedText>” and inserting “<quotedText>section 402</quotedText>”.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">(B)</num> <content>Clause 7(d) of rule XIII of the Rules of the House of Representatives is amended by striking “<quotedText>section 403</quotedText>” and inserting “<quotedText>section 402</quotedText>”.</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="10117">SEC. 10117.</num><sidenote><p class="indent0 firstIndent0 fontsize8">Loans.</p></sidenote> <heading>AMENDMENTS TO TITLE V.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Section 502</inline>.—</heading><chapeau>Section 502 of the Federal Credit Reform<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s661a">2 USC 661a</ref>.</p></sidenote> Act of 1990 is amended as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>In the second sentence of paragraph (1), insert “<quotedText>and financing arrangements that defer payment for more than 90 days, including the sale of a government asset on credit terms</quotedText>” before the period.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>In paragraph (5)(A), insert “<quotedText>or modification thereof</quotedText>” before the first comma.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>In paragraph (5), strike subparagraphs (B) and (C) and insert the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>The cost of a direct loan shall be the net present value, at the time when the direct loan is disbursed, of the following estimated cash flows:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>loan disbursements;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>repayments of principal; and<page identifier="/us/stat/111/693">111 STAT. 693</page></content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>payments of interest and other payments by or to the Government over the life of the loan after adjusting for estimated defaults, prepayments, fees, penalties, and other recoveries;</content></clause> <continuation class="indent0 fontsize10">including the effects of changes in loan terms resulting from the exercise by the borrower of an option included in the loan contract.</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <chapeau>The cost of a loan guarantee shall be the net present value, at the time when the guaranteed loan is disbursed, of the following estimated cash flows:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>payments by the Government to cover defaults and delinquencies, interest subsidies, or other payments; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>payments to the Government including origination and other fees, penalties and recoveries;</content></clause> <continuation class="indent0 fontsize10">including the effects of changes in loan terms resulting from the exercise by the guaranteed lender of an option included in the loan guarantee contract, or by the borrower of an option included in the guaranteed loan contract.”.</continuation> </subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>In paragraph (5), amend subparagraph (D) to read as follows: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>The cost of a modification is the difference between the current estimate of the net present value of the remaining cash flows under the terms of a direct loan or loan guarantee contract, and the current estimate of the net present value of the remaining cash flows under the terms of the contract, as modified.”.</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>In paragraph (5)(E), insert “<quotedText>the cash flows of</quotedText>” after “to”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>In paragraph (5), by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>When funds are obligated for a direct loan or loan guarantee, the estimated cost shall be based on the current assumptions, adjusted to incorporate the terms of the loan contract, for the fiscal year in which the funds are obligated.”.</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <content>Redesignate paragraph (9) as paragraph (11) and after paragraph (8) add the following new paragraphs: <quotedContent> <paragraph class="indent1 fontsize10"><num value="9">“(9)</num> <content>The term ‘modification’ means any Government action that alters the estimated cost of an outstanding direct loan (or direct loan obligation) or an outstanding loan guarantee (or loan guarantee commitment) from the current estimate of cash flows. This includes the sale of loan assets, with or without recourse, and the purchase of guaranteed loans. This also includes any action resulting from new legislation, or from the exercise of administrative discretion under existing law, that directly or indirectly alters the estimated cost of outstanding direct loans (or direct loan obligations) or loan guarantees (or loan guarantee commitments) such as a change in collection procedures.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">“(10)</num> <content>The term ‘current’ has the same meaning as in section 250(c)(9) of the Balanced Budget and Emergency Deficit Control Act of 1985.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Section 504</inline>.—</heading><chapeau>Section 504 of the Federal Credit Reform Act of 1990 is amended as follows:<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s661c">2 USC 661c</ref>.</p></sidenote></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Amend subsection (b)(1) to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>new budget authority to cover their costs is provided in advance in an appropriations Act;”.<page identifier="/us/stat/111/694">111 STAT. 694</page></content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>In subsection (b)(2), strike “<quotedText>is enacted</quotedText>” and insert “<quotedText>has been provided in advance in an appropriations Act</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>In subsection (c), strike “<quotedText>Subsection (b)</quotedText>” and insert “<quotedText>Subsections (b) and (e)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>In subsection (d)(1), strike “<quotedText>directly or indirectly alter the costs of outstanding direct loans and loan guarantees</quotedText>” and insert “<quotedText>modify outstanding direct loans (or direct loan obligations) or loan guarantees (or loan guarantee commitments)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>Amend subsection (e) to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Modifications</inline>.—</heading><content>An outstanding direct loan (or direct loan obligation) or loan guarantee (or loan guarantee commitment) shall not be modified in a manner that increases its costs unless budget authority for the additional cost has been provided in advance in an appropriations Act.”.</content> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Section 505</inline>.—</heading><chapeau>Section 505 of the Federal Credit Reform <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s661d">2 USC 661d</ref>.</p></sidenote>Act of 1990 is amended as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>In subsection (c), by inserting before the period at the end of the second sentence the following: “, except that the rate of interest charged by the Secretary on lending to financing accounts (including amounts treated as lending to financing accounts by the Federal Financing Bank (hereinafter in this subsection referred to as the ‘Bank’) pursuant to section 406(b)) and the rate of interest paid to financing accounts on uninvested balances in financing accounts shall be the same as the rate determined pursuant to section 502(5)(E). For guaranteed loans financed by the Bank and treated as direct loans by a Federal agency pursuant to section 406(b), any fee or interest surcharge (the amount by which the interest rate charged exceeds the rate determined pursuant to section 502(5)(E)) that the Bank charges to a private borrower pursuant to section 6(c) of the Federal Financing Bank Act of 1973 shall be considered a cash flow to the Government for the purposes of determining the cost of the direct loan pursuant to section 502(5). All such amounts shall be credited to the appropriate financing account. The Bank is authorized to require reimbursement from a Federal agency to cover the administrative expenses of the Bank that are attributable to the direct loans financed for that agency. All such payments by an agency shall be considered administrative expenses subject<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> to section 504(g). This subsection shall apply to transactions related to direct loan obligations or loan guarantee commitments made on or after October 1, 1991”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>In subsection (c), by striking “<quotedText>supercede</quotedText>” and inserting “<quotedText>supersede</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>By amending subsection (d) to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Authorization for Liquidating Accounts</inline>.—</heading><paragraph class="inline"><num value="1">(1)</num> <chapeau>Amounts in liquidating accounts shall be available only for payments resulting from direct loan obligations or loan guarantee commitments made prior to October 1, 1991, for—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>interest payments and principal repayments to the Treasury or the Federal Financing Bank for amounts borrowed;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>disbursements of loans;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>default and other guarantee claim payments;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>interest supplement payments;<page identifier="/us/stat/111/695">111 STAT. 695</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>payments for the costs of foreclosing, managing, and selling collateral that are capitalized or routinely deducted from the proceeds of sales;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>payments to financing accounts when required for modifications;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <chapeau>administrative expenses, if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>amounts credited to the liquidating account would have been available for administrative expenses under a provision of law in effect prior to October 1, 1991; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>no direct loan obligation or loan guarantee commitment has been made, or any modification of a direct loan or loan guarantee has been made, since September 30, 1991; or</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num> <content>such other payments as are necessary for the liquidation of such direct loan obligations and loan guarantee commitments.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2)</num> <content>Amounts credited to liquidating accounts in any year shall be available only for payments required in that year. Any unobligated balances in liquidating accounts at the end of a fiscal year shall be transferred to miscellaneous receipts as soon as practicable after the end of the fiscal year.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3)</num> <content>If funds in liquidating accounts are insufficient to satisfy obligations and commitments of such accounts, there is hereby provided permanent, indefinite authority to make any payments required to be made on such obligations and commitments.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Section 506</inline>.—</heading><chapeau>Section 506 of the Federal Credit Reform Act of 1990 is amended—<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s661e">2 USC 661e</ref>.</p></sidenote></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>(a) <inline class="smallCaps">In General</inline>.—</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<quotedText>(1)</quotedText>” and inserting the following: “(a) <inline class="smallCaps">In General</inline>.—”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by striking “<quotedText>(2) The</quotedText>” and inserting the following: “(b) <inline class="smallCaps">Study</inline>.—The”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>by striking “<quotedText>(3)</quotedText>” and inserting the following: “(c) <inline class="smallCaps">Access to Data</inline>.—”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>in subsection (c) (as redesignated) by striking “<quotedText>paragraph (2)</quotedText>” and inserting “<quotedText>subsection (b)</quotedText>”.</content></paragraph> </subsection> </section> <section> <num value="10118">SEC. 10118.</num> <heading>REPEAL OF TITLE VI.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Repealer</inline>.—</heading><content>Title VI of the Congressional Budget Act of 1974 is repealed.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s665">2 USC 665 <i>et seq</i></ref>.</p></sidenote></content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><paragraph class="inline"><num value="1">(1)</num> <content>The items relating to title VI of the table of contents set forth in section 1(b) of the Congressional Budget and Impoundment Control Act of 1974 are repealed.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <content>Clause 4(h) of rule X of the Rules of the House of Representatives is amended by striking “<quotedText>section 302 or section 602 (in the case of fiscal years 1991 through 1995)</quotedText>” and inserting “<quotedText>section 302</quotedText>”.</content></paragraph> </subsection> </section> <section> <num value="10119">SEC. 10119.</num> <heading>AMENDMENTS TO SECTION 904.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>Section 904(a) of the Congressional Budget Act of 1974 is amended by striking “<quotedText>(except section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s621">2 USC 621 note</ref>.</p></sidenote> 905)</quotedText>” and by striking “<quotedText>V, and VI (except section 601(a))</quotedText>” and inserting “<quotedText>and V</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Waivers</inline>.—</heading><content>Section 904(c) of the Congressional Budget Act of 1974 is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Waivers</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Permanent</inline>.—</heading><content>Sections 305(b)(2), 305(c)(4), 306, 310(d)(2), 313, 904(c), and 904(d) of this Act may be waived <page identifier="/us/stat/111/696">111 STAT. 696</page>or suspended in the Senate only by the affirmative vote of three-fifths of the Members, duly chosen and sworn.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Temporary</inline>.—</heading><content>Sections 301(i), 302(c), 302(f), 310(g), 311(a), 312(b), and 312(c) of this Act and sections 258(a)(4)(C), 258A(b)(3)(C)(i), 258B(f)(1), 258B(h)(1), 258(h)(3), 258C(a)(5), and 258C(b)(1) of the Balanced Budget and Emergency Deficit Control Act of 1985 may be waived or suspended in the Senate only by the affirmative vote of three-fifths of the Members, duly chosen and sworn.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Appeals</inline>.—</heading><content>Section 904(d) of the Congressional Budget Act <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s621">2 USC 621 note</ref>.</p></sidenote>of 1974 is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Appeals</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Procedure</inline>.—</heading><content>Appeals in the Senate from the decisions of the Chair relating to any provision of title III or IV or section 1017 shall, except as otherwise provided therein, be limited to 1 hour, to be equally divided between, and controlled by, the mover and the manager of the resolution, concurrent resolution, reconciliation bill, or rescission bill, as the case may be.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Permanent</inline>.—</heading><content>An affirmative vote of three-fifths of the Members, duly chosen and sworn, shall be required in the Senate to sustain an appeal of the ruling of the Chair on a point of order raised under sections 305(b)(2), 305(c)(4), 306, 310(d)(2), 313, 904(c), and 904(d) of this Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Temporary</inline>.—</heading><content>An affirmative vote of three-fifths of the Members, duly chosen and sworn, shall be required in the Senate to sustain an appeal of the ruling of the Chair on a point of order raised under sections 301(i), 302(c), 302(f), 310(g), 311(a), 312(b), and 312(c) of this Act and sections 258(a)(4)(C), 258A(b)(3)(C)(I), 258B(f)(1), 258B(h)(1), 258(h)(3), 2580(a)(5), and 258C(b)(1) of the Balanced Budget and Emergency Deficit Control Act of 1985.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Expiration of Supermajority Voting Requirements</inline>.—</heading><content>Section 904 of the Congressional Budget Act of 1974 is amended by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Expiration of Certain Supermajority Voting Requirements</inline>.—</heading><content>Subsections (c)(2) and (d)(3) shall expire on September 30, 2002.”.</content> </subsection> </quotedContent> </content></subsection> </section> <section> <num value="10120">SEC. 10120.</num> <heading>REPEAL OF SECTIONS 905 AND 906.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Repealer</inline>.—</heading><content>Sections 905 and 906 of the Congressional <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s621">2 USC 621 note</ref>, 632 note.</p></sidenote>Budget Act of 1974 are repealed.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><content>The table of contents set forth in section 1(b) of the Congressional Budget and Impoundment Control Act of 1974 is amended by striking the items relating to sections 905 and 906.</content> </subsection> </section> <section> <num value="10121">SEC. 10121.</num> <heading>AMENDMENTS TO SECTIONS 1022 AND 1024.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Section 1022</inline>.—</heading><content>Section 1022(b)(1)(F) of the Congressional <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s621a">2 USC 691a</ref>.</p></sidenote>Budget and Impoundment Control Act of 1974 is amended by striking “<quotedText>section 601</quotedText>” and inserting “<quotedText>section 251(c) of the Balanced Budget and Emergency Deficit Control Act of 1985</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Section 1024</inline>.—</heading><content>Section 1024(a)(1)(B) of the Congressional Budget and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s691c">2 USC 691c</ref>.</p></sidenote>Impoundment Control Act of 1974 is amended by striking “<quotedText>section 601(a)(2)</quotedText>” and inserting “<quotedText>section 251(c) of the Balanced Budget and Emergency Deficit Control Act of 1985</quotedText>”.<page identifier="/us/stat/111/697">111 STAT. 697</page></content> </subsection> </section> <section> <num value="10122">SEC. 10122.</num> <heading>AMENDMENT TO SECTION 1026.</heading> <content>Section 1026(7)(A)(iv) of the Congressional Budget and Impoundment Control Act of 1974 is amended by striking “<quotedText>; and</quotedText>”<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s691e">2 USC 691e</ref>.</p></sidenote> and inserting “<quotedText>; or</quotedText>”.</content> </section> <section> <num value="10123">SEC. 10123.</num> <heading>SENATE TASK FORCE ON CONSIDERATION OF BUDGET MEASURES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Appointment of Members</inline>.—</heading><content>The Majority Leader and Minority Leader of the Senate shall each appoint 3 Senators to serve on a bipartisan task force to study the floor procedures for the consideration of budget resolutions and reconciliation bills in the Senate as provided in sections 305(b) and 310(e) of the Congressional Budget Act of 1974.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Report of the Task Force</inline>.—</heading><content>The task force shall submit its report to the Senate not later than October 8, 1997.</content> </subsection> </section> </subtitle> <subtitle> <num value="B">Subtitle B—</num><heading>Amendments to the Balanced Budget and Emergency Deficit Control Act of 1985</heading> <section> <num value="10201">SEC. 10201.</num> <heading>PURPOSE.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s900">2 USC 900 note</ref>.</p></sidenote> <content>The purpose of this subtitle is to extend discretionary spending limits and pay-as-you-go requirements.</content> </section> <section> <num value="10202">SEC. 10202.</num> <heading>GENERAL STATEMENT AND DEFINITIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">General Statement</inline>.—</heading><content>Section 250(b) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s900">2 USC 900</ref>.</p></sidenote> by striking the first 2 sentences and inserting the following: “This part provides for budget enforcement as called for in House Concurrent Resolution 84 (105th Congress, 1st session).”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>Section 250(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in paragraph (1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking“(but including” through “amount’ ”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking “<quotedText>section 601 of that Act as adjusted under sections 251 and 253</quotedText>” and inserting “<quotedText>section 251</quotedText>”;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking paragraph (4) and inserting the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>The term ‘category’ means the subsets of discretionary appropriations in section 251(c). Discretionary appropriations in each of the categories shall be those designated in the joint explanatory statement accompanying the conference report on the Balanced Budget Act of 1997. New accounts or activities shall be categorized only after consultation with the committees on Appropriations and the Budget of the House of Representatives and the Senate and that consultation shall, to the extent practicable, include written communication to such committees that affords such committees the opportunity to comment before official action is taken with respect to new accounts or activities”;</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by striking paragraph (6) and inserting the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>The term ‘budgetary resources’ means new budget authority, unobligated balances, direct spending authority, and obligation limitations.”;<page identifier="/us/stat/111/698">111 STAT. 698</page></content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>in paragraph (9), by striking “<quotedText>submission of the fiscal year 1992 budget that are not included with a budget submission</quotedText>” and inserting “<quotedText>that budget submission that are not included with it</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>in paragraph (14), by inserting “<quotedText>first 4</quotedText>” before “fiscal years” and by striking “<quotedText>through fiscal year 1995</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>by striking paragraphs (17) and (20) and by redesignating paragraphs (18), (19), and (21) as paragraphs (17), (18), and (19), respectively;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <content>in paragraph (17) (as redesignated), by striking “<quotedText>Omnibus Budget Reconciliation Act of 1990</quotedText>” and inserting “<quotedText>Balanced Budget Act of 1997</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8)</num> <content>in paragraph (18) (as redesignated), by striking all after “expenses” and inserting “<quotedText>the Federal deposit insurance agencies, and other Federal agencies supervising insured depository institutions, resulting from full funding of, and continuation of, the deposit insurance guarantee commitment in effect under current estimates.</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9)</num> <content>by striking paragraph (19) (as redesignated) and inserting the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="19">“(19)</num> <content>The term ‘asset sale’ means the sale to the public of any asset (except for those assets covered by title V of the Congressional Budget Act of 1974), whether physical or financial, owned in whole or in part by the United States.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> </section> <section> <num value="10203">SEC. 10203.</num> <heading>ENFORCING DISCRETIONARY SPENDING LIMITS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Extension Through Fiscal Year 2002</inline>.—</heading><chapeau>Section 251 of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s901">2 USC 901</ref>.</p></sidenote>the Balanced Budget and Emergency Deficit Control Act of 1985 is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in the heading of subsection (a), by striking “<quotedText>Fiscal Years 1991–1998</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subsection (a)(3), by striking “<quotedText>(h)</quotedText>” both places it appears and inserting “<quotedText>(f)</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by striking subsection (a)(7) and inserting the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Estimates</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">CBO estimates</inline>.—</heading><content>As soon as practicable after Congress completes action on any discretionary appropriation, CBO, after consultation with the Committees on the Budget of the House of Representatives and the Senate, shall provide OMB with an estimate of the amount of discretionary new budget authority and outlays for the current year (if any) and the budget year provided by that legislation.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> <heading><inline class="smallCaps">OMB estimates and explanation of differences</inline>.—</heading><content>Not later than 7 calendar days (excluding Saturdays, Sundays, and legal holidays) after the date of enactment of any discretionary appropriation, OMB shall transmit a report to the House of Representatives and to the Senate containing the CBO estimate of that legislation, an OMB estimate of the amount of discretionary new budget authority and outlays for the current year (if any) and the budget year provided by that legislation, and an explanation of any difference between the 2 estimates. If during the preparation of the report OMB determines that there is a significant difference between OMB and CBO, OMB shall consult with the Committees on the Budget of the House of Representatives and the Senate <page identifier="/us/stat/111/699">111 STAT. 699</page>regarding that difference and that consultation shall include, to extent practicable, written communication to those committees that affords such committees the opportunity to comment before the issuance of the report.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Assumptions and guidelines</inline>.—</heading><content>OMB estimates under this paragraph shall be made using current economic and technical assumptions. OMB shall use the OMB estimates transmitted to the Congress under this paragraph. OMB and CBO shall prepare estimates under this paragraph in conformance with scorekeeping guidelines determined after consultation among the House and Senate Committees on the Budget, CBO, and OMB.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Annual appropriations</inline>.—</heading><content>For purposes of this paragraph, amounts provided by annual appropriations shall include any new budget authority and outlays for the current year (if any) and the budget year in accounts for which funding is provided in that legislation that result from previously enacted legislation.”;</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>by striking subsection (b) and inserting the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Adjustments to Discretionary Spending Limits</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Preview report</inline>.—</heading><content>When the President submits the budget under section 1105 of title 31, United States Code, OMB shall calculate and the budget shall include adjustments to discretionary spending limits (and those limits as cumulatively adjusted) for the budget year and each outyear to reflect changes in concepts and definitions Such changes shall equal the baseline levels of new budget authority and outlays using up-to-date concepts and definitions minus those levels using the concepts and definitions in effect before such changes. Such changes may only be made after consultation with the committees on Appropriations and the Budget of the House of Representatives and the Senate and that consultation shall include written communication to such committees that affords such committees the opportunity to comment before official action is taken with respect to such changes.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Sequestration reports</inline>.—</heading><chapeau>When OMB submits a sequestration report under section 254(e), (f), or (g) for a fiscal year, OMB shall calculate, and the sequestration report and subsequent budgets submitted by the President under section 1105(a) of title 31, United States Code, shall include adjustments to discretionary spending limits (and those limits as adjusted) for the fiscal year and each succeeding year through 2002, as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Emergency appropriations</inline>.—</heading><content>If, for any fiscal year, appropriations for discretionary accounts are enacted that the President designates as emergency requirements and that the Congress so designates in statute, the adjustment shall be the total of such appropriations in discretionary accounts designated as emergency requirements and the outlays flowing in all fiscal years from such appropriations. This subparagraph shall not apply to appropriations to cover agricultural crop disaster assistance.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Special outlay allowance</inline>.—</heading><content>If, in any fiscal year, outlays for a category exceed the discretionary spending limit for that category but new budget authority does not exceed its limit for that category (after application of the first step of a sequestration described in subsection <page identifier="/us/stat/111/700">111 STAT. 700</page>(a)(2), if necessary), the adjustment in outlays for a fiscal year is the amount of the excess but not to exceed 0.5 percent of the sum of the adjusted discretionary spending limits on outlays for that fiscal year.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Continuing disability reviews</inline>.—</heading><clause class="inline"><num value="i">(i)</num> <chapeau>If a bill or joint resolution making appropriations for a fiscal year is enacted that specifies an amount for continuing disability reviews under the heading ‘Limitation on Administrative Expenses’ for the Social Security Administration, the adjustments for that fiscal year shall be the additional new budget authority provided in that Act for such reviews for that fiscal year and the additional outlays flowing from such amounts, but shall not exceed—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>for fiscal year 1998, $290,000,000 in additional new budget authority and $338,000,000 in additional outlays;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>for fiscal year 1999, $520,000,000 in additional new budget authority and $520,000,000 in additional outlays;</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>for fiscal year 2000, $520,000,000 in additional new budget authority and $520,000,000 in additional outlays;</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>for fiscal year 2001, $520,000,000 in additional new budget authority and $520,000,000 in additional outlays; and</content></subclause> <subclause class="indent4 fontsize10"><num value="V">“(V)</num> <content>for fiscal year 2002, $520,000,000 in additional new budget authority and $520,000,000 in additional outlays.</content></subclause> </clause> <clause class="indent0 fontsize10"><num value="ii">“(ii)</num> <chapeau>As used in this subparagraph—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the term ‘continuing disability reviews’ means reviews or redeterminations as defined under section 201(g)(1)(A) of the Social Security Act and reviews and redeterminations authorized under section 211 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the term ‘additional new budget authority’ means the amount provided for a fiscal year, in excess of $200,000,000, in an appropriations Act and specified to pay for the costs of continuing disability reviews under the heading ‘Limitation on Administrative Expenses’ for the Social Security Administration; and</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>the term ‘additional outlays’ means outlays, in excess of $200,000,000 in a fiscal year, flowing from the amounts specified for continuing disability reviews under the heading ‘Limitation on Administrative Expenses’ for the Social Security Administration, including outlays in that fiscal year flowing from amounts specified in Acts enacted for prior fiscal years (but not before 1996).</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Allowance for imf</inline>.—</heading><chapeau>If an appropriation bill or joint resolution is enacted for a fiscal year through 2002 that includes an appropriation with respect to clause (i) or (ii), the adjustment shall be the amount of budget authority in the measure that is the dollar equivalent of the Special Drawing Rights with respect to—<page identifier="/us/stat/111/701">111 STAT. 701</page></chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>an increase in the United States quota as part of the International Monetary Fund Eleventh General Review of Quotas (United States Quota); or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>any increase in the maximum amount available to the Secretary of the Treasury pursuant to section 17 of the Bretton Woods Agreements Act, as amended from time to time (New Arrangements to Borrow).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Allowance for international arrearages</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Adjustments</inline>.—</heading><content>If an appropriation bill or joint resolution is enacted for fiscal year 1998, 1999, or 2000 that includes an appropriation for arrearages for international organizations, international peacekeeping, and multilateral development banks for that fiscal year, the adjustment shall be the amount of budget authority in that measure and the outlays flowing in all fiscal years from that budget authority.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Limitations</inline>.—</heading><content>The total amount of adjustments made pursuant to this subparagraph for the period of fiscal years 1998 through 2000 shall not exceed $1,884,000,000 in budget authority.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <heading><inline class="smallCaps">EITC compliance initiative</inline>.—</heading><chapeau>If an appropriation bill or joint resolution is enacted for a fiscal year that includes an appropriation for an earned income tax credit compliance initiative, the adjustment shall be the amount of budget authority in that measure for that initiative and the outlays flowing in all fiscal years from that budget authority, but not to exceed—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>with respect to fiscal year 1998, $138,000,000 in new budget authority and $131,000,000 in outlays;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>with respect to fiscal year 1999, $143,000,000 in new budget authority and $143,000,000 in outlays;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>with respect to fiscal year 2000, $144,000,000 in new budget authority and $144,000,000 in outlays;</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>with respect to fiscal year 2001, $145,000,000 in new budget authority and $145,000,000 in outlays; and</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>with respect to fiscal year 2002, $146,000,000 in new budget authority and $146,000,000 in outlays.”.</content></clause> </subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Shifting of Discretionary Spending Limits Into the Balanced Budget and Emergency Deficit Control Act of 1985</inline>.—</heading><content>Section 251 of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended by adding at the end the following<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s901">2 USC 901</ref>.</p></sidenote> new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Discretionary Spending Limit</inline>—</heading><chapeau>As used in this part, the term ‘discretionary spending limit’ means—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>with respect to fiscal year 1997, for the discretionary category, the current adjusted limits of new budget authority and outlays;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <chapeau>with respect to fiscal year 1998—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>for the defense category: $269,000,000,000 in new budget authority and $266,823,000,000 in outlays;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>for the nondefense category: $252,357,000,000 in new budget authority and $282,853,000,000 in outlays; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>for the violent crime reduction category: $5,500,000,000 in new budget authority and $3,592,000,000 in outlays;<page identifier="/us/stat/111/702">111 STAT. 702</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <chapeau>with respect to fiscal year 1999—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>for the defense category: $271,500,000,000 in new budget authority and $266,518,000,000 in outlays;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>for the nondefense category: $255,699,000,000 in new budget authority and $287,850,000,000 in outlays; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>for the violent crime reduction category: $5,800,000,000 in new budget authority and $4,953,000,000 in outlays;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <chapeau>with respect to fiscal year 2000—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>for the discretionary category: $532,693,000,000 in new budget authority and $558,711,000,000 in outlays; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>for the violent crime reduction category: $4,500,000,000 in new budget authority and $5,554,000,000 in outlays;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>with respect to fiscal year 2001, for the discretionary category: $542,032,000,000 in new budget authority and $564,396,000,000 in outlays; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>with respect to fiscal year 2002, for the discretionary category: $551,074,000,000 in new budget authority and $560,799,000,000 in outlays;</content></paragraph> <continuation class="indent0 fontsize10">as adjusted in strict conformance with subsection (b).”.</continuation> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Repeal of Duplicative Provisions</inline>.—</heading><content>Sections 201, 202, 204(b), 206, and 211 of House Concurrent Resolution 84 (105th Congress) are repealed.</content> </subsection> </section> <section> <num value="10204">SEC. 10204.</num> <heading>VIOLENT CRIME REDUCTION SPENDING.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Sequestration Regarding Violent Crime Reduction Spending</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Repeal</inline>.—</heading><content>Section 251A of the Balanced Budget and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s901a">2 USC 901a</ref>.</p></sidenote>Emergency Deficit Control Act of 1985 is repealed.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Table of contents</inline>.—</heading><content>The item relating to section 251A in the table contents set forth in section 250(a) of the Balanced <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s900">2 USC 900</ref>.</p></sidenote>Budget and Emergency Deficit Control Act of 1985 is repealed.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>Section 310002 of Public Law 103–322 (42 U.S.C. 14212) is repealed.</content> </subsection> </section> <section> <num value="10205">SEC. 10205.</num> <heading>ENFORCING PAY-AS-YOU-GO.</heading> <chapeau>Section 252 of the Balanced Budget and Emergency Deficit <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s902">2 USC 902</ref>.</p></sidenote>Control Act of 1985 is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking subsections (a) and (b) and inserting the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Purpose</inline>.—</heading><content>The purpose of this section is to assure that any legislation enacted before October 1, 2002, affecting direct spending or receipts that increases the deficit will trigger an offsetting sequestration.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Sequestration</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Timing</inline>.—</heading><content>Not later than 15 calendar days after the date Congress adjourns to end a session and on the same day as a sequestration (if any) under section 251 or 253, there shall be a sequestration to offset the amount of any net deficit increase caused by all direct spending and receipts legislation enacted before October 1, 2002, as calculated under paragraph (2).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Calculation of deficit increase</inline>.—</heading><chapeau>OMB shall calculate the amount of deficit increase or decrease by adding—<page identifier="/us/stat/111/703">111 STAT. 703</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>all OMB estimates for the budget year of direct spending and receipts legislation transmitted under subsection (d);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the estimated amount of savings in direct spending programs applicable to budget year resulting from the prior year’s sequestration under this section or section 253, if any, as published in OMB’s final sequestration report for that prior year; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>any net deficit increase or decrease in the current year resulting from all OMB estimates for the current year of direct spending and receipts legislation transmitted under subsection (d) that were not reflected in the final OMB sequestration report for the current year.”;</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by amending subsection (c)(1)(B), by inserting “<quotedText>and direct</quotedText>” after “guaranteed”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by amending subsection (d) to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Estimates</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">CBO estimates</inline>.—</heading><content>As soon as practicable after Congress completes action on any direct spending or receipts legislation, CBO shall provide an estimate to OMB of that legislation.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">OMB estimates</inline>.—</heading><chapeau>Not later than 7 calendar days (excluding Saturdays, Sundays, and legal holidays) after the date of enactment of any direct spending or receipts legislation, OMB shall transmit a report to the House of Representatives and to the Senate containing—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the CBO estimate of that legislation;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>an OMB estimate of that legislation using current economic and technical assumptions; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>an explanation of any difference between the 2 estimates.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Significant differences</inline>.—</heading><content>If during the preparation of the report under paragraph (2) OMB determines that there is a significant difference between the OMB and CBO estimates, OMB shall consult with the Committees on the Budget of the House of Representatives and the Senate regarding that difference and that consultation, to the extent practicable, shall include written communication to such committees that affords such committees the opportunity to comment before the issuance of that report.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Scope of estimates</inline>.—</heading><chapeau>The estimates under this section shall include the amount of change in outlays or receipts for the current year (if applicable), the budget year, and each outyear excluding any amounts resulting from—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>full funding of, and continuation of, the deposit insurance guarantee commitment in effect under current estimates; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>emergency provisions as designated under subsection (e).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Scorekeeping guidelines</inline>.—</heading><chapeau>OMB and CBO, after consultation with each other and the Committees on the Budget of the House of Representatives and the Senate, shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>determine common scorekeeping guidelines; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>in conformance with such guidelines, prepare estimates under this section.”; and</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>in subsection (e), by striking “<quotedText>, for any fiscal year from 1991 through 1998,</quotedText>” and by striking “<quotedText>through 1995</quotedText>”.<page identifier="/us/stat/111/704">111 STAT. 704</page></content></paragraph> </section> <section> <num value="10206">SEC. 10206.</num> <heading>REPORTS AND ORDERS.</heading> <chapeau>Section 254 of the Balanced Budget and Emergency Deficit <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s904">2 USC 904</ref>.</p></sidenote>Control Act of 1985 is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking subsection (c) and redesignating subsections (d) through (k) as (c) through (j), respectively;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subsection (c) (as redesignated), by striking “<quotedText>1998</quotedText>” and inserting “<quotedText>2002</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>in subsection (d) (as redesignated), by striking “<quotedText>(h)</quotedText>” and inserting “<quotedText>(f)</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num><subparagraph class="inline"><num value="A">(A)</num> <content>in subsection (f)(2)(A) (as redesignated), by striking “<quotedText>1998</quotedText>” and inserting “<quotedText>2002</quotedText>”;</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">(B)</num> <content>in subsection (f)(3) (as redesignated), by striking “<quotedText>through 1998</quotedText>”; and</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">(C)</num> <content>by striking subsection (f)(4) (as redesignated) and by redesignating paragraphs (5) and (6) of that subsection as paragraphs (4) and (5), respectively; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>in subsection (g) (as redesignated), by striking “<quotedText>(g)</quotedText>” each place it appears and inserting “<quotedText>(f)</quotedText>”.</content></paragraph> </section> <section> <num value="10207">SEC. 10207.</num> <heading>EXEMPT PROGRAMS AND ACTIVITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Veterans Programs</inline>.—</heading><chapeau>Section 255(b) of the Balanced <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s905">2 USC 905</ref>.</p></sidenote>Budget and Emergency Deficit Control Act of 1985 is amended as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>In the item relating to Veterans Insurance and Indemnity, strike “<quotedText>Indemnity</quotedText>” and insert “<quotedText>Indemnities</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>In the item relating to Veterans’ Canteen Service Revolving Fund, strike “<quotedText>Veterans’</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>In the item relating to Benefits under chapter 21 of title 38, strike “<quotedText>(36–0137–0–1–702)</quotedText>” and insert “<quotedText>(36–0120–01–701)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>In the item relating to Veterans’ compensation, strike “<quotedText>Veterans’ compensation</quotedText>” and insert “<quotedText>Compensation</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>In the item relating to Veterans’ pensions, strike “<quotedText>Veterans’ pensions</quotedText>” and insert “<quotedText>Pensions</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>After the last item, insert the following new items: <quotedContent> <p class="indent0 fontsize10">“Benefits under chapter 35 of title 38, United States Code, related to educational assistance for survivors and dependents of certain veterans with service-connected disabilities (36–01370–1–702);</p> <p class="indent0 fontsize10">“Assistance and services under chapter 31 of title 38, United States Code, relating to training and rehabilitation for certain veterans with service-connected disabilities (36–01370–1–702);</p> <p class="indent0 fontsize10">“Benefits under subchapters I, II, and III of chapter 37 of title 38, United States Code, relating to housing loans for certain veterans and for the spouses and surviving spouses of certain veterans Guaranty and Indemnity Program Account (36–1119–0–1–704);</p> <p class="indent0 fontsize10">“Loan Guaranty Program Account (36–1025–0–1–704); and</p> <p class="indent0 fontsize10">“Direct Loan Program Account (36–1024–0–1–704).”.</p> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Certain Program Bases</inline>.—</heading><content>Section 255(f) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Optional Exemption of Military Personnel</inline>.—<page identifier="/us/stat/111/705">111 STAT. 705</page></heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The President may, with respect to any military personnel account, exempt that account from sequestration or provide for a lower uniform percentage reduction than would otherwise apply.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Limitation</inline>.—</heading><content>The President may not use the authority provided by paragraph (1) unless the President notifies the Congress of the manner in which such authority will be exercised on or before the date specified in section 254(a) for the budget year.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Other Programs and Activities</inline>.—</heading><paragraph class="inline"><num value="1">(1)</num> <chapeau>Section 255(g)(1)(A) of the Balanced Budget Emergency Deficit Control Act of 1985<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s905">2 USC 905</ref>.</p></sidenote> is amended as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>After the first item, insert the following new item: <quotedContent> <p class="indent0 fontsize10">“Activities financed by voluntary payments to the Government for goods or services to be provided for such payments;”.</p> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Strike “Thrift Savings Fund (26–8141–0–7–602);”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>In the first item relating to the Bureau of Indian Affairs, insert “<quotedText>Indian land and water claims settlements and</quotedText>” after the comma.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>In the second item relating to the Bureau of Indian Affairs, strike “<quotedText>miscellaneous</quotedText>” and insert “<quotedText>Miscellaneous</quotedText>” and strike “<quotedText>, tribal trust funds</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>Strike “Claims, defense (97–0102–0–1–051);”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F)</num> <content>In the item relating to Claims, judgments, and relief acts, strike “<quotedText>806</quotedText>” and insert “<quotedText>808</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">(G)</num> <content>Strike “Coinage profit fund (20–5811–0–2–803);”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">(H)</num> <content>Insert “Compact of Free Association (14–0415–0–1808);” after the item relating to the Claims, judgments, and relief acts.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="I">(I)</num> <content>Insert “Conservation Reserve Program (12–2319–0–1302);” after the item relating to the Compensation of the President.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="J">(J)</num> <content>In the item relating to the Customs Service, strike “<quotedText>852</quotedText>” and insert “<quotedText>806</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="K">(K)</num> <content>In the item relating to the Comptroller of the Currency, insert “<quotedText>, Assessment funds (20–8413–0–8–373)</quotedText>” before the semicolon.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="L">(L)</num> <content>Strike “Director of the Office of Thrift Supervision;”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="M">(M)</num> <content>Strike “Eastern Indian land claims settlement fund (14–2202–0–1–806);”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="N">(N)</num> <content>After the item relating to the Exchange stabilization fund, insert the following new items: <quotedContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">“Farm Credit Administration, Limitation on Administrative Expenses (78–4131–0–3–351);</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Farm Credit System Financial Assistance Corporation, interest payment (20–1850–0–1–908);”.</listContent></listItem> </list> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="O">(O)</num> <content>Strike “Federal Deposit Insurance Corporation;”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="P">(P)</num> <content>In the first item relating to the Federal Deposit Insurance Corporation, insert “<quotedText>(51–4064–0–3–373)</quotedText>” before the semicolon.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="Q">(Q)</num> <content>In the second item relating to the Federal Deposit Insurance Corporation, insert “<quotedText>(51–4065–0–3–373)</quotedText>” before the semicolon.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="R">(R)</num> <content>In the third item relating to the Federal Deposit Insurance Corporation, insert “<quotedText>(51–4066–0–3–373)</quotedText>” before the semicolon.<page identifier="/us/stat/111/706">111 STAT. 706</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="S">(S)</num> <content>In the item relating to the Federal Housing Finance Board, insert “<quotedText>(95–4039–0–3–371)</quotedText>” before the semicolon.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="T">(T)</num> <content>In the item relating to the Federal payment to the railroad retirement account, strike “<quotedText>account</quotedText>” and insert “<quotedText>accounts</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="U">(U)</num> <content>In the item relating to the health professions graduate student loan insurance fund, insert “<quotedText>program account</quotedText>” after “fund” and strike “<quotedText>(Health Education Assistance Loan Program) (75–4305–0–3–553)</quotedText>” and insert “<quotedText>(75–0340–0–1–552)</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="V">(V)</num> <content>In the item relating to Higher education facilities, strike “<quotedText>and insurance</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="W">(W)</num> <content>In the item relating to Internal revenue collections for Puerto Rico, strike “<quotedText>852</quotedText>” and insert “<quotedText>806</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="X">(X)</num> <content>Amend the item relating to the Panama Canal Commission to read as follows: <quotedContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">“Panama Canal Commission, Panama Canal Revolving Fund (95–4061–0–3–403);”.</listContent></listItem> </list> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="Y">(Y)</num> <content>In the item relating to the Medical facilities guarantee and loan fund, strike “<quotedText>(75–4430–0–3–551)</quotedText>” and insert “<quotedText>(759931–0–3–550)</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="Z">(Z)</num> <content>In the first item relating to the National Credit Union Administration, insert “<quotedText>operating fund (25–4056–0–3–373)</quotedText>” before the semicolon.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="AA">(AA)</num> <content>In the second item relating to the National Credit Union Administration, strike “<quotedText>central</quotedText>” and insert “<quotedText>Central</quotedText>” and insert “<quotedText>(25–4470–0–3–373)</quotedText>” before the semicolon.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="BB">(BB)</num> <content>In the third item relating to the National Credit Union Administration, strike “<quotedText>credit</quotedText>” and insert “<quotedText>Credit</quotedText>” and insert “<quotedText>(25–4468–0–3–373)</quotedText>” before the semicolon.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="CC">(CC)</num> <content>After the third item relating to the National Credit Union Administration, insert the following new item: <quotedContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">“Office of Thrift Supervision (20–4108–0–3–373);”.</listContent></listItem> </list> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="DD">(DD)</num> <content>In the item relating to Payments to health care trust funds, strike “<quotedText>572</quotedText>” and insert “<quotedText>571</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="EE">(EE)</num> <content>Strike “Compact of Free Association, economic assistance pursuant to Public Law 99–658 (14–0415–0–1–806);”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="FF">(FF)</num> <content>In the item relating to Payments to social security trust funds, strike “<quotedText>571</quotedText>” and insert “<quotedText>651</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="GG">(GG)</num> <content>Strike “Payments to state and local government fiscal assistance trust fund (20–2111–0–1–851);”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="HH">(HH)</num> <content>In the item relating to Payments to the United States territories, strike “<quotedText>852</quotedText>” and insert “<quotedText>806</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="II">(II)</num> <content>Strike “Resolution Funding Corporation;”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="JJ">(JJ)</num> <content>In the item relating to the Resolution Trust Corporation, insert “<quotedText>Revolving Fund (22–4055–0–3–373)</quotedText>” before the semicolon.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="KK">(KK)</num> <content>After the item relating to the Tennessee Valley Authority funds, insert the following new items: <quotedContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">“Thrift Savings Fund;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“United States Enrichment Corporation (95–4054–03–271);</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Vaccine Injury Compensation (75–0320–0–1–551);</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Vaccine Injury Compensation Program Trust Fund (20–8175–0–7–551);”.</listContent></listItem> </list> </quotedContent> </content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>Section 255(g)(1)(B) of the Balanced Budget and Emergency <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s905">2 USC 905</ref>.</p></sidenote>Deficit Control Act of 1985 is amended as follows:<page identifier="/us/stat/111/707">111 STAT. 707</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Strike “The following budget” and insert “<quotedText>The following Federal retirement and disability</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>In the item relating to Black lung benefits, strike “<quotedText>lung benefits</quotedText>” and insert “<quotedText>Lung Disability Trust Fund</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>In the item relating to the Court of Federal Claims Court Judges’ Retirement Fund, strike “<quotedText>Court of Federal</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>In the item relating to Longshoremen’s compensation benefits, insert “<quotedText>Special workers compensation expenses,</quotedText>” before “Longshoremen’s”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>In the item relating to Railroad retirement tier II, strike “<quotedText>retirement tier II</quotedText>” and insert “<quotedText>Industry Pension Fund</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <chapeau>Section 255(g)(2) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended as follows:<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s905">2 USC 905</ref>.</p></sidenote></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Strike the following items: <quotedContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">“Agency for International Development, Housing, and other credit guarantee programs (72–4340–0–3–151);</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Agricultural credit insurance fund (12–4140–0–1351);”.</listContent></listItem> </list> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>In the item relating to Check forgery, strike “<quotedText>Check</quotedText>” and insert “<quotedText>United States Treasury check</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>Strike “Community development grant loan guarantees (86–0162–0–1–451);”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>After the item relating to the United States Treasury Check forgery insurance fund, insert the following new item: “Credit liquidating accounts;”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>Strike the following items: <list> <listItem><listContent class="indent1 fontsize10 depth0">“Credit union share insurance fund (25–4468–0–3–371);”.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Economic development revolving fund (13–4406–0–3452);”.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Export-Import Bank of the United States, Limitation of program activity (83–4027–0–3–155);”.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Federal Deposit Insurance Corporation (51–8419–08–371);”.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Federal Housing Administration fund (86–4070–0–3371);”.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Federal ship financing fund (69–4301–0–3–403);”.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Federal ship financing fund, fishing vessels (13–44170–3–376);”.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Government National Mortgage Association, Guarantees of mortgage-backed securities (86–4238–0–3–371);”.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Health education loans (75–4307–0–3–553);”.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Indian loan guarantee and insurance fund (14–44100–3–452);”.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Railroad rehabilitation and improvement financing fund (69–4411–0–3–401);”.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Rural development insurance fund (12–4155–0–3452);”.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Rural electric and telephone revolving fund (12–4230–8–3–271);”.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Rural housing insurance fund (12–4141–0–3–371);”.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Small Business Administration, Business loan and investment fund (73–4154–0–3–376);”.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Small Business Administration, Lease guarantees revolving fund (73–4157–0–3–376);”.<page identifier="/us/stat/111/708">111 STAT. 708</page></listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Small Business Administration, Pollution control equipment contract guarantee revolving fund (73–41470–3–376);”.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Small Business Administration, Surety bond guarantees revolving fund (73–4156–0–3–376);”.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Department of Veterans Affairs Loan guaranty revolving fund (36–4025–0–3–704);”.</listContent></listItem> </list></content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Low-Income Programs</inline>.—</heading><chapeau>Section 255(h) of the Balanced <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s905">2 USC 905</ref>.</p></sidenote>Budget and Emergency Deficit Control Act of 1985 is amended as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Amend the item relating to Child nutrition to read as follows: <list> <listItem><listContent class="indent1 fontsize10 depth0">“Child nutrition programs (with the exception of special milk programs) (12–3539–0–1–605);”.</listContent></listItem> </list></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>After the second item insert the following new items: <list> <listItem><listContent class="indent1 fontsize10 depth0">“Temporary assistance for needy families (75–1552–0–1–609);</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Contingency fund (75–1522–0–1–609);”</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Child care entitlement to States (75–1550–0–1–609);</listContent></listItem> </list></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Amend the item relating to Women, infants, and children program to read as follows: <list> <listItem><listContent class="indent1 fontsize10 depth0">“Special supplemental nutrition program for women, infants, and children (WIC) (12–3510–0–1–605);”.</listContent></listItem> </list></content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>After the last item add the following new item: <list> <listItem><listContent class="indent1 fontsize10 depth0">“Family support payments to States (75–1501–0–1–609);”.</listContent></listItem> </list></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Identification of Programs</inline>.—</heading><content>Section 255(i) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="i">“(i)</num> <heading><inline class="smallCaps">Identification of Programs</inline>.—</heading><content>For purposes of subsections (b), (g), and (h), each account is identified by the designated budget account identification code number set forth in the Budget of the United States Government 1998–Appendix, and an activity within an account is designated by the name of the activity and the identification code number of the account.”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Optional Exemption of Military Personnel</inline>.—</heading><content>Section 255(h) of the Balanced Budget and Emergency Deficit Control Act of 1985 (relating to optional exemption of military personnel) is repealed.</content> </subsection> </section> <section> <num value="10208">SEC. 10208.</num> <heading>GENERAL AND SPECIAL SEQUESTRATION RULES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Headings</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Section</inline>.—</heading><content>The section heading of section 256 of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s906">2 USC 906</ref>.</p></sidenote>Balanced Budget and Emergency Deficit Control Act of 1985 is amended by striking “<quotedText><inline class="smallCaps">exceptions, limitations, and special rules</inline></quotedText>” and inserting “<quotedText><inline class="smallCaps">general and special sequestration rules</inline></quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Table of contents</inline>.—</heading><content>The item relating to section 256 in the table contents set forth in section 250(a) of the Balanced <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s900">2 USC 900</ref>.</p></sidenote>Budget and Emergency Deficit Control Act of 1985 is amended to read as follows: <quotedContent> <toc> <referenceItem role="section"><designator>“SEC. 256.</designator> <label>GENERAL AND SPECIAL SEQUESTRATION RULES.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Automatic Spending Increases</inline>.—</heading><content>Section 256(a) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended by striking paragraph (1) and redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively.<page identifier="/us/stat/111/709">111 STAT. 709</page> <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Student Loans</inline>.—</heading><content>For all student loans under part B or D of title IV of the Higher Education Act of 1965 made during the period when a sequestration order under section 254 is in effect as required by section 252 or 253, origination fees under sections 438(c)(2) and 455(c) of that Act shall each be increased by 0.50 percentage point.”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Health Centers</inline>.—</heading><content>Section 256(e)(1) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended by striking the dash and all that follows thereafter and inserting “<quotedText>2 percent.</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Treatment of Federal Administrative Expenses</inline>.—</heading><chapeau>Section 256(h) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in paragraph (2), by striking “<quotedText>joint resolution</quotedText>” and inserting “<quotedText>part</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in paragraph (4), by striking subparagraphs (D) and (H), by redesignating subparagraphs (E), (F), (G), and (I), as subparagraphs (D), (E), (F), and (G), respectively, and by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num> <content>Farm Credit Administration.”.</content></subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Commodity Credit Corporation</inline>.—</heading><content>Section 256(j) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended by striking paragraphs (2) through (5) and inserting the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Reduction in payments made under contracts</inline>.—</heading><subparagraph class="inline"><num value="A">(A)</num> <content>Loan eligibility under any contract entered into with a person by the Commodity Credit Corporation prior to the time an order has been issued under section 254 shall not be reduced by an order subsequently issued. Subject to subparagraph (B), after an order is issued under such section for a fiscal year, any cash payments for loans or loan deficiencies made by the Commodity Credit Corporation shall be subject to reduction under the order.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B)</num> <content>Each loan contract entered into with producers or producer cooperatives with respect to a particular crop of a commodity and subject to reduction under subparagraph (A) shall be reduced in accordance with the same terms and conditions. If some, but not all, contracts applicable to a crop of a commodity have been entered into prior to the issuance of an order under section 254, the order shall provide that the necessary reduction in payments under contracts applicable to the commodity be uniformly applied to all contracts for the next succeeding crop of the commodity, under the authority provided in paragraph (3).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Delayed reduction in outlays permissible</inline>.—</heading><content>Notwithstanding any other provision of this title, if an order under section 254 is issued with respect to a fiscal year, any reduction under the order applicable to contracts described in paragraph (1) may provide for reductions in outlays for the account involved to occur in the fiscal year following the fiscal year to which the order applies.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Uniform percentage rate of reduction and other limitations</inline>.—</heading><content>All reductions described in paragraph (2) which are required to be made in connection with an order issued under section 254 with respect to a fiscal year shall be made so as to ensure that outlays for each program, project, activity, or account involved are reduced by a percentage rate that is uniform for all such programs, projects, activities, and <page identifier="/us/stat/111/710">111 STAT. 710</page>accounts, and may not be made so as to achieve a percentage rate of reduction in any such item exceeding the rate specified in the order.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Dairy program</inline>.—</heading><content>Notwithstanding any other provision of this subsection, as the sole means of achieving any reduction in outlays under the milk price support program, the Secretary of Agriculture shall provide for a reduction to be made in the price received by producers for all milk produced in the United States and marketed by producers for commercial use. That price reduction (measured in cents per hundred weight of milk marketed) shall occur under section 201(d)(2)(A) of the Agricultural Act of 1949 (7 U.S.C. 1446(d)(2)(A)), shall begin on the day any sequestration order is issued under section 254, and shall not exceed the aggregate amount of the reduction in outlays under the milk price support program that otherwise would have been achieved by reducing payments for the purchase of milk or the products of milk under this subsection during the applicable fiscal year.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="g">(g)</num> <heading><inline class="smallCaps">Effects of Sequestration</inline>.—</heading><chapeau>Section 256(k) of the Balanced<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s906">2 USC 906</ref>.</p></sidenote> Budget and Emergency Deficit Control Act of 1985 is amended as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>In paragraph (1), strike “<quotedText>other than a trust or special fund account</quotedText>” and insert “<quotedText>, except as provided in paragraph (5)</quotedText>” before the period.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Amend paragraph (6) to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>Budgetary resources sequestered in revolving, trust, and special fund accounts and offsetting collections sequestered in appropriation accounts shall not be available for obligation during the fiscal year in which the sequestration occurs, but shall be available in subsequent years to the extent otherwise provided in law.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> </section> <section> <num value="10209">SEC. 10209.</num> <heading>THE BASELINE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 257 of the Balanced Budget and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s907">2 USC 907</ref>.</p></sidenote>Emergency Deficit Control Act of 1985 is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subsection (b)(2) by amending subparagraph (A) to read as follows. <quotedContent> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num><clause class="inline"><num value="i">(i)</num> <content>No program established by a law enacted on or before the date of enactment of the Balanced Budget Act of 1997 with estimated current year outlays greater than $50,000,000 shall be assumed to expire in the budget year or the outyears. The scoring of new programs with estimated outlays greater than $50,000,000 a year shall be based on scoring by the Committees on Budget or OMB, as applicable. OMB, CBO, and the Budget Committees shall consult on the scoring of such programs where there are differenes between CBO and OMB.</content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii)</num> <content>On the expiration of the suspension of a provision of law that is suspended under section 171 of Public Law 104–127 and that authorizes a program with estimated fiscal year outlays that are greater than $50,000,000, for purposes of clause (i), the program shall be assumed to continue to operate in the same manner as the program operated immediately before the expiration of the suspension.”;</content></clause> </subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding the end of subsection (b)(2) the following new subparagraph:<page identifier="/us/stat/111/711">111 STAT. 711</page> <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>If any law expires before the budget year or any outyear, then any program with estimated current year outlays greater than $50,000,000 that operates under that law shall be assumed to continue to operate under that law as in effect immediately before its expiration.”;</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>in the second sentence of subsection (c)(5), by striking “<quotedText>national product fixed-weight price index</quotedText>” and inserting “<quotedText>domestic product chain-type price index</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>by striking subsection (e) and inserting the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Asset Sales</inline>.—</heading><content>Amounts realized from the sale of an asset shall not be included in estimates under section 251, 252, or 253 if that sale would result in a financial cost to the Federal Government as determined pursuant to scorekeeping guidelines.”.</content> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">President’s Budget</inline>.—</heading><content>Section 1105(a) of title 31, United States Code, is amended by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="32">“(32)</num> <content>a statement of the levels of budget authority and outlays for each program assumed to be extended in the baseline as provided in section 257(b)(2)(A) and for excise taxes assumed to be extended under section 257(b)(2)(C) of the Balanced Budget and Emergency Deficit Control Act of 1985.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Budgetary Treatment of Certain Trust Fund Operations</inline>.—</heading><content>Section 710 of the Social Security Act (42 U.S.C. 911) is amended to read as follows: <quotedContent> <level> <heading class="centered">“<inline class="smallCaps">budgetary treatment of trust fund operations</inline></heading> <section> <num value="710">“<inline class="smallCaps">Sec</inline>. 710.</num> <subsection class="inline"><num value="a">(a)</num> <content>The receipts and disbursements of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund and the taxes imposed under sections 1401 and 3101 of the Internal Revenue Code of 1986 shall not be included in the totals of the budget of the United States Government as submitted by the President or of the congressional budget and shall be exempt from any general budget limitation imposed by statute on expenditures and net lending (budget outlays) of the United States Government.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <content>No provision of law enacted after the date of enactment of the Balanced Budget and Emergency Deficit Control Act of 1985 (other than a provision of an appropriation Act that appropriated funds authorized under the Social Security Act as in effect on the date of the enactment of the Balanced Budget and Emergency Deficit control Act of 1985) may provide for payments from the general fund of the Treasury to any Trust Fund specified in subsection (a) or for payments from any such Trust Fund to the general fund of the Treasury.”.</content> </subsection> </section> </level> </quotedContent> </content></subsection> </section> <section> <num value="10210">SEC. 10210.</num> <heading>TECHNICAL CORRECTION.</heading> <content>Section 258 of the Balanced Budget and Emergency Deficit Control Act of 1985, entitled “Modification of Presidential Order”,<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s908">2 USC 908</ref>.</p></sidenote> is repealed.</content> </section> <section> <num value="10211">SEC. 10211.</num> <heading>JUDICIAL REVIEW.</heading> <chapeau>Section 274 of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended as follows:<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s922">2 USC 922</ref>.</p></sidenote></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Strike “252” or “252(b)” each place it occurs and insert “<quotedText>254</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>In subsection (d)(1)(A), strike “<quotedText>257(1) to the extent that</quotedText>” and insert “<quotedText>256(a) if</quotedText>” and at the end insert “<quotedText>or</quotedText>”.<page identifier="/us/stat/111/712">111 STAT. 712</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>In subsection (d)(1)(B), strike “<quotedText>new budget</quotedText>” and all that follows through “spending authority” and insert “<quotedText>budgetary resources</quotedText>” and strike “<quotedText>or</quotedText>” after the comma.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>Strike subsection (d)(1)(C).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>Strike subsection (f) and redesignate subsections (g) and (h) as subsections (f) and (g), respectively.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>In subsection (g) (as redesignated), strike “<quotedText>base levels of total revenues and total budget outlays, as</quotedText>” and insert “<quotedText>figures</quotedText>”, and strike “<quotedText>251(a)(2)(B) or (c)(2),</quotedText>” and insert “<quotedText>254</quotedText>”.</content></paragraph> </section> <section> <num value="10212">SEC. 10212.</num> <heading>EFFECTIVE DATE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Expiration</inline>.—</heading><chapeau>Section 275(b) of the Balanced Budget and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s900">2 USC 900 note</ref>.</p></sidenote>Emergency Deficit Control Act of 1985 is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>Part C of this title, section</quotedText>” and inserting “<quotedText>Sections 251, 253, 258B, and</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<quotedText>1995</quotedText>” and inserting “<quotedText>2002</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by adding at the end the following new sentence: “The remaining sections of part C of this title shall expire September 30, 2006.”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Expiration</inline>.—</heading><content>Section 14002(c)(3) of the Omnibus Budget Reconciliation Act of 1993 (2 U.S.C. 900 note) is repealed.</content> </subsection> </section> <section> <num value="10213">SEC. 10213.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s902">2 USC 902 note</ref>.</p></sidenote> <heading>REDUCTION OF PREEXISTING BALANCES AND EXCLUSION OF EFFECTS OF THIS ACT FROM PAYGO SCORECARD.</heading> <chapeau>Upon the enactment of this Act, the Director of the Office of Management and Budget shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>reduce any balances of direct spending and receipts legislation for any fiscal year under section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985 to zero; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>not make any estimates of changes in direct spending outlays and receipts under subsection (d) of that section for any fiscal year resulting from the enactment of this Act or of the Taxpayer Relief Act of 1997.</content></paragraph> </section> </subtitle> <num value="IX">TITLE XI—</num><heading>DISTRICT OF COLUMBIA REVITALIZATION</heading><sidenote><p class="indent0 firstIndent0 fontsize8">National Capital Revitalization and Self-Government Improvement Act of 1997.</p></sidenote> <section> <num value="11000">SECTION 11000.</num> <heading>SHORT TITLE: TABLE OF CONTENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Short Title</inline>.—</heading><content>This title may be cited as the “National Capital Revitalization and Self-Government Improvement Act of 1997”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Table of Contents</inline>.—</heading><content>The table of contents of this title is as follows: <toc> <referenceItem role="section"><designator>Sec. 11000.</designator> <label>Short title, table of contents.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle A—</designator><label>District of Columbia Retirement Funds</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 1—</designator><label>SHORT TITLE; FINDINGS; DEFINITIONS</label></referenceItem> <referenceItem role="section"><designator>Sec. 11001.</designator> <label>Short title.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11002.</designator> <label>Findings and declaration of policy.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11003.</designator> <label>Definitions.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 2—</designator><label>FEDERAL BENEFIT PAYMENTS UNDER DISTRICT RETIREMENT PROGRAMS</label></referenceItem> <referenceItem role="section"><designator>Sec. 11011.</designator> <label>Obligation of Federal government to make benefit payments.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11012.</designator> <label>Federal benefit payments described.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11013.</designator> <label>Establishment of single annual cost-of-living adjustment under District Retirement Program.<page identifier="/us/stat/111/713">111 STAT. 713</page></label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 3—</designator><label>DETERMINATIONS AND REVIEW OF ELIGIBILITY AND PAYMENTS; INFORMATION SHARING</label></referenceItem> <referenceItem role="section"><designator>Sec. 11021.</designator> <label>Determination of eligibility for and amount of Federal benefit payments made by Trustee.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11022.</designator> <label>Procedures for resolving claims arising from denied benefit payments.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11023.</designator> <label>Transfer of and access to records of District Government.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11024.</designator> <label>Federal information sharing for verification of benefit determinations.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 4—</designator><label>DISTRICT OF COLUMBIA FEDERAL PENSION LIABILITY TRUST FUND</label></referenceItem> <referenceItem role="section"><designator>Sec. 11031.</designator> <label>Creation of Trust Fund.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11032.</designator> <label>Uses of amounts in Trust Fund.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11033.</designator> <label>Transfer of assets and obligations of District Retirement Funds.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11034.</designator> <label>Treatment of Trust Fund under certain laws.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11035.</designator> <label>Administration through Trustee.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 5—</designator><label>RESPONSIBILITIES OF DISTRICT GOVERNMENT</label></referenceItem> <referenceItem role="section"><designator>Sec. 11041.</designator> <label>Interim administration.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11042.</designator> <label>Replacement plan.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 6—</designator><label>FINANCING OF BENEFIT PAYMENTS AFTER DEPLETION OF TRUST FUND</label></referenceItem> <referenceItem role="section"><designator>Sec. 11051.</designator> <label>Creation of Federal Supplemental Fund.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11052.</designator> <label>Uses of amounts in Fund.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11053.</designator> <label>Determination of annual payment into Federal Supplemental Fund.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11054.</designator> <label>Determination of methodology for making payments.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11055.</designator> <label>Special requirements upon discontinuation of Trust Fund.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 7—</designator><label>REPORTS</label></referenceItem> <referenceItem role="section"><designator>Sec. 11061.</designator> <label>Annual valuations and reports by enrolled actuary.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11062.</designator> <label>Reports by Comptroller General.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 8—</designator><label>JUDICIAL ENFORCEMENT</label></referenceItem> <referenceItem role="section"><designator>Sec. 11071.</designator> <label>Judicial review.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11072.</designator> <label>Jurisdiction and venue.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11073.</designator> <label>Statute of limitations.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11074.</designator> <label>Treatment of misappropriation of fund amounts as Federal crime.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 9—</designator><label>MISCELLANEOUS</label></referenceItem> <referenceItem role="section"><designator>Sec. 11081.</designator> <label>Coordination between Secretary, Trustee, and District Government.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11082.</designator> <label>Study of alternatives for financing Federal obligations.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11083.</designator> <label>Issuance of regulations by Secretary.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11084.</designator> <label>Effect on Reform Act and other laws.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11085.</designator> <label>Reference to new Federal program for retirement of judges of District of Columbia courts.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11086.</designator> <label>Full faith and credit.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11087.</designator> <label>Severability of provisions.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle B—</designator><label>Management Reform Plans</label></referenceItem> <referenceItem role="section"><designator>Sec. 11101.</designator> <label>Short title.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11102.</designator> <label>Management reform plans for District Government.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11103.</designator> <label>Procedures for development of plans.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11104.</designator> <label>Implementation of plans.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11105.</designator> <label>Reform of powers and duties of department heads.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11106.</designator> <label>No effect on powers of Financial Responsibility and Management Assistance Authority.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle C—</designator><label>Criminal Justice</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 1—</designator><label>CORRECTIONS</label></referenceItem> <referenceItem role="section"><designator>Sec. 11201.</designator> <label>Bureau of Prisons.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11202.</designator> <label>Corrections Trustee.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11203.</designator> <label>Priority consideration for employees of the District of Columbia.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11204.</designator> <label>Amendments related to persons with a mental disease or defect.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11205.</designator> <label>Liability for and litigation authority of Corrections Trustee.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11206.</designator> <label>Permitting expenditure of funds to carry out certain sewer agreement.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 2—</designator><label>SENTENCING</label></referenceItem> <referenceItem role="section"><designator>Sec. 11211.</designator> <label>Truth-in-Sentencing Commission.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11212.</designator> <label>General duties, powers, and goals of Commission.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11213.</designator> <label>Data collection.<page identifier="/us/stat/111/714">111 STAT. 714</page></label></referenceItem> <referenceItem role="section"><designator>Sec. 11214.</designator> <label>Enactment of amendments to District of Columbia Code.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 3—</designator><label>OFFENDER SUPERVISION AND PAROLE</label></referenceItem> <referenceItem role="section"><designator>Sec. 11231.</designator> <label>Parole.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11232.</designator> <label>Pretrial Services, Defense Services, Parole, Adult Probation and Offender Supervision Trustee.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11233.</designator> <label>Offender Supervision, Defender and Courts Services Agency.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11234.</designator> <label>Authorization of appropriations.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 4—</designator><label>DISTRICT OF COLUMBIA COURTS</label></referenceItem> <referenceItem role="subchapter"><designator>SUBCHAPTER A—</designator><label>TRANSFER OF ADMINISTRATION AND FINANCING OF COURTS TO FEDERAL GOVERNMENT</label></referenceItem> <referenceItem role="section"><designator>Sec. 11241.</designator> <label>Authorization of appropriations.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11242.</designator> <label>Administration of courts under District of Columbia Code.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11243.</designator> <label>Budgeting and financing requirements for courts under Home Rule Act.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11244.</designator> <label>Auditing of accounts of court system.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11245.</designator> <label>Miscellaneous budgeting and financing requirements for courts under District law.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11246.</designator> <label>Other provisions relating to administration of District of Columbia courts.</label></referenceItem> <referenceItem role="subchapter"><designator>SUBCHAPTER B—</designator><label>JUDICIAL RETIREMENT PROGRAM</label></referenceItem> <referenceItem role="section"><designator>Sec. 11251.</designator> <label>Judicial Retirement and Survivors Annuity Fund.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11252.</designator> <label>Termination of current fund and program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11253.</designator> <label>Conforming amendments.</label></referenceItem> <referenceItem role="subchapter"><designator>SUBCHAPTER C—</designator><label>MISCELLANEOUS CONFORMING AND ADMINISTRATIVE PROVISIONS</label></referenceItem> <referenceItem role="section"><designator>Sec. 11261.</designator> <label>Treatment of courts under miscellaneous District laws.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11262.</designator> <label>Representation of indigents in criminal cases.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 5—</designator><label>PRETRIAL SERVICES AGENCY AND PUBLIC DEFENDER SERVICE</label></referenceItem> <referenceItem role="section"><designator>Sec. 11271.</designator> <label>Amendments affecting Pretrial Services Agency.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11272.</designator> <label>Amendments affecting Public Defender Service.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 6—</designator><label>MISCELLANEOUS PROVISIONS</label></referenceItem> <referenceItem role="section"><designator>Sec. 11281.</designator> <label>Technical assistance and research.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11282.</designator> <label>Exemption from personnel and budget ceilings for Trustees and related agencies.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle D—</designator><label>Privatization of Tax Collection and Administration</label></referenceItem> <referenceItem role="section"><designator>Sec. 11301.</designator> <label>Findings.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11302.</designator> <label>Authorizing Chief Financial Officer to privatize tax administration and collection.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle E—</designator><label>Financing of District of Columbia Accumulated Deficit</label></referenceItem> <referenceItem role="section"><designator>Sec. 11401.</designator> <label>Findings.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11402.</designator> <label>Authorization for intermediate-term advances of funds by the Secretary of the Treasury to liquidate the accumulated general fund deficit of the District of Columbia.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11403.</designator> <label>Conforming amendments.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11404.</designator> <label>Technical corrections</label></referenceItem> <referenceItem role="section"><designator>Sec. 11405.</designator> <label>Authorization for issuance of general obligation bonds by the District of Columbia to finance or refund its accumulated general fund deficit.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle F—</designator><label>District of Columbia Bond Financing Improvements</label></referenceItem> <referenceItem role="section"><designator>Sec. 11501.</designator> <label>Short title.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11502.</designator> <label>Findings.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11503.</designator> <label>Amendment to Section 462 (relating to contents of borrowing legislation and elections on issuing general obligation bonds).</label></referenceItem> <referenceItem role="section"><designator>Sec. 11504.</designator> <label>Amendment to Section 466 (relating to public or negotiated sale of general obligation bonds).</label></referenceItem> <referenceItem role="section"><designator>Sec. 11505.</designator> <label>Amendment to Section 467 (relating to authority to create security interests in District revenues).</label></referenceItem> <referenceItem role="section"><designator>Sec. 11506.</designator> <label>Amendment to Section 472 (relating to borrowing in anticipation of revenues).</label></referenceItem> <referenceItem role="section"><designator>Sec. 11507.</designator> <label>Addition of new Section 475 (relating to general obligation bond anticipation notes).</label></referenceItem> <referenceItem role="section"><designator>Sec. 11508.</designator> <label>Amendment to Section 490 (relating to revenue bonds and other obligations).<page identifier="/us/stat/111/715">111 STAT. 715</page></label></referenceItem> <referenceItem role="section"><designator>Sec. 11509.</designator> <label>Conforming amendment.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle G—</designator><label>District of Columbia Government Budget</label></referenceItem> <referenceItem role="section"><designator>Sec. 11601.</designator> <label>Elimination of the annual Federal payment to the District of Columbia.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11602.</designator> <label>Requirement that the District of Columbia balance its budget in FY 1998.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11603.</designator> <label>Permitting expedited submission and approval of consensus budget and financial plan.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11604.</designator> <label>Increase in maximum amount of permitted District borrowing.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle H—</designator><label>Miscellaneous Provisions</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 1—</designator><label>REGULATORY REFORM IN THE DISTRICT OF COLUMBIA</label></referenceItem> <referenceItem role="section"><designator>Sec. 11701.</designator> <label>Review and revision of regulations and permit and application processes.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11702.</designator> <label>Repeal of Clean Air Compliance Fee Act of 1994.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11703.</designator> <label>Repeal requirement for Congressional authorization of certain mergers involving District of Columbia public utility corporations.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11704.</designator> <label>Exemption of certain contracts from Council review.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 2—</designator><label>OTHER MISCELLANEOUS PROVISIONS</label></referenceItem> <referenceItem role="section"><designator>Sec. 11711.</designator> <label>Revisions to Financial Responsibility and Management Assistance Act.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11712.</designator> <label>Cooperative agreements between Federal agencies and Metropolitan Police Department.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11713.</designator> <label>Permitting garnishment of wages of officers and employees of District of Columbia government.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11714.</designator> <label>Permitting excess appropriations by Water and Sewer Authority for capital projects.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11715.</designator> <label>Requiring certain Federal officials to provide notice before carrying out activities affecting real property located in District of Columbia.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11716.</designator> <label>Repeal term of deed of conveyance to certain hospital.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11717.</designator> <label>Short title of Home Rule Act.</label></referenceItem> <referenceItem role="chapter"><designator>CHAPTER 3—</designator><label>EFFECTIVE DATE; GENERAL PROVISIONS</label></referenceItem> <referenceItem role="section"><designator>Sec. 11721.</designator> <label>Effective date.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11722.</designator> <label>Technical assistance.</label></referenceItem> <referenceItem role="section"><designator>Sec. 11723.</designator> <label>Liability.</label></referenceItem> </toc> </content></subsection> </section> <subtitle> <num value="A">Subtitle A—</num><heading>District of Columbia Retirement Funds</heading><sidenote><p class="indent0 firstIndent0 fontsize8">District of Columbia Retirement Protection Act of 1997.</p></sidenote> <chapter> <num value="1">CHAPTER 1—</num><heading>SHORT TITLE; FINDINGS; DEFINITIONS</heading> <section> <num value="11001">SEC. 11001.</num> <heading>SHORT TITLE.</heading> <content>This subtitle may be cited as the “District of Columbia Retirement Protection Act of 1997”.</content> </section> <section> <num value="11002">SEC. 11002.</num> <heading>FINDINGS AND DECLARATION OF POLICY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>The Congress finds that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>State and municipal retirement programs should be funded on an actuarially sound basis;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>the retirement programs for the police officers and firefighters, teachers and judges of the District of Columbia had significant unfunded liabilities totaling approximately $1,900,000,000 when the Federal government transferred those programs to the District of Columbia, and those liabilities have since increased to nearly $4,800,000,000, an increase which is almost entirely attributable to the accumulation of interest on the value which existed at the time of transfer;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>the District of Columbia has fully met its financial obligations under the District of Columbia Retirement Reform Act of 1979 (Public Law 96–122);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>the growth of the unfunded liabilities of the three pension funds listed above did not occur because of any action <page identifier="/us/stat/111/716">111 STAT. 716</page>taken or any failure to act that lay within the power of the District of Columbia government or the District of Columbia Retirement Board;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>the presence of the unfunded pension liability is having and will continue to have a negative impact on the District of Columbia’s credit rating as it is a legal obligation and the total unfunded liability exceeds the total General Obligation debt of the District, and the costs associated with this liability are a contributing cause of the District’s ongoing financial crisis;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>the obligations of the District associated with these pension programs in fiscal year 1997 represents nearly 10 percent of the District’s revenue;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <content>the annual Federal contribution toward these costs under the District of Columbia Retirement Reform Act has remained $52,000,000;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8)</num> <content>if the unfunded pension liability situation is not resolved, in 2004 the District of Columbia would be responsible for annual costs exceeding $800,000,000, a figure which would be impossible to meet without catastrophic impact on the District government’s resources and programs;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9)</num> <content>the financial resources of the District of Columbia are not adequate to discharge the unfunded liabilities of the retirement programs; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10)</num> <content>the level of benefits and funding of the current retirement programs were authorized by various Acts of Congress.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Policy</inline>.—</heading><chapeau>It is the policy of this subtitle—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>to relieve the District of Columbia government of the responsibility for the unfunded pension liabilities transferred to it by the Federal government;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>for the Federal government to assume the legal responsibility for paying certain pension benefits (including certain unfunded pension liabilities which existed as of the day prior to introduction of this legislation) for the retirement plans of teachers, police, and firefighters;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>to provide for a responsible Federal system for payment of benefits accrued prior to the date of introduction of this legislation; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>to require the establishment of replacement plans by the District of Columbia government for the current retirement plans for teachers, and police and firefighters.</content></paragraph> </subsection> </section> <section> <num value="11003">SEC. 11003.</num> <heading>DEFINITIONS.</heading> <chapeau>For purposes of this subtitle, the following definitions shall apply:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>The term “contract” means the contract under section 11035 between the Secretary and the Trustee.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>The term “covered District employee” means a teacher of the District of Columbia public schools, or a member of the Metropolitan Police Force or the Fire Department of the District of Columbia, as defined under the District Retirement Program.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>The term “District Government” means any entity treated as part of the District government under section 305(5) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995, including the District <page identifier="/us/stat/111/717">111 STAT. 717</page>of Columbia Retirement Board (as defined in section 102(5) of the Reform Act).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>The term “District Retirement Fund” means the District of Columbia Police Officers and Fire Fighters Retirement Fund and the District of Columbia Teachers Retirement Fund, as defined in the Reform Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>The term “District Retirement Program” means any of the retirement programs for teachers and members of the Metropolitan Police Force and Fire Department, as described in section 102(7) of the Reform Act as in effect on the day before the freeze date (except as amended by section 11013).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>The term “enrolled actuary” means the enrolled actuary engaged by the Trustee under section 11061(a).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <content>The term “Federal benefit payment” means a payment described in section 11012.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8)</num> <content>The term “Federal Supplemental Fund” means the Federal Supplemental District of Columbia Pension Fund created under section 11051.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9)</num> <content>The term “freeze date” means June 30, 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10)</num> <content>The term “person” means an individual, partnership, joint venture, corporation, mutual company, joint-stock company, trust, estate, unincorporated organization, association, or employee organization.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="11">(11)</num> <content>The term “Reform Act” means the District of Columbia Retirement Reform Act (Public Law 96–122).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="12">(12)</num> <content>The term “replacement plan” means the plan described in section 11042.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="13">(13)</num> <content>The term “replacement plan adoption date” means the date upon which the legislation establishing the replacement plan becomes effective, or the first day after the expiration of the 1-year period which begins on the date of the enactment of this Act, whichever occurs first.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="14">(14)</num> <content>The term “Trust Fund” means the District of Columbia Federal Pension Liability Trust Fund established under section 11031.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="15">(15)</num> <content>The term “Secretary” means the Secretary of the Treasury or the Secretary’s designee.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="16">(16)</num> <content>The term “Trustee” means the person or persons selected by the Secretary under section 11035.</content></paragraph> </section> </chapter> <chapter> <num value="2">CHAPTER 2—</num><heading>FEDERAL BENEFIT PAYMENTS UNDER DISTRICT RETIREMENT PROGRAMS</heading> <section> <num value="11011">SEC. 11011.</num> <heading>OBLIGATION OF FEDERAL GOVERNMENT TO MAKE BENEFIT PAYMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>In accordance with the provisions of this subtitle, the Federal Government shall make Federal benefit payments associated with the pension plans for police officers, firefighters, and teachers of the District of Columbia.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">No Reversion of Federal Responsibility to District</inline>.—</heading><content>At no point after the effective date of this subtitle may the responsibility or any part thereof assigned to the Federal Government under subsection (a) for making Federal benefit payments revert to the District of Columbia.<page identifier="/us/stat/111/718">111 STAT. 718</page></content> </subsection> </section> <section> <num value="11012">SEC. 11012.</num> <heading>FEDERAL BENEFIT PAYMENTS DESCRIBED.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subject to the succeeding provisions of this subtitle, a “Federal benefit payment” is any benefit payment to which an individual is entitled under a District Retirement Program, in such amount and under such terms and conditions as may apply under such Program.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Treatment of Service Occurring After Freeze Date</inline>.—</heading><content>Service after the freeze date shall not be credited for purposes of determining the amount of any Federal benefit payment. Nothing in this subsection shall be construed to affect the crediting of such service for any other purpose under the District Retirement Program.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Special Rule Regarding Disability Benefits</inline>.—</heading><content>To the extent that any portion of a benefit payment to which an individual is entitled under a District Retirement Program is based on a determination of disability made by the District of Columbia Retirement Board or the Trustee after the freeze date, the Federal benefit payment determined with respect to the individual shall be an amount equal to the deferred retirement benefit or normal retirement benefit the individual would receive if the individual left service on the day before the commencement of disability retirement benefits.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Special Rule Regarding Certain Death Benefits</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In the case of a benefit payment to which an individual is entitled under a District Retirement Program which is payable on the death of a covered District employee or former covered District employee and which is not determined by the length of service of the employee or former employee, the Federal benefit payment determined with respect to the individual shall be equal to the pre-freeze date percentage of the amount otherwise payable.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Pre-freeze date percentage defined</inline>.—</heading><chapeau>In paragraph (1), the “pre-freeze date percentage” with respect to a covered District employee or former covered District employee is the amount (expressed as a percentage) equal to the quotient of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>the number of months of the covered District employee’s or former covered District employee’s service prior to the freeze date; divided by</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>the total number of months of the covered District employee’s or former covered District employee’s service.</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="11013">SEC. 11013.</num> <heading>ESTABLISHMENT OF SINGLE ANNUAL COST-OF-LIVING ADJUSTMENT UNDER DISTRICT RETIREMENT PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Program for Police and Fire Fighters</inline>.—</heading><chapeau>Subsection (m) of the Policemen and Firemen’s Retirement and Disability Act (DC Code, sec. 4–624) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in paragraph (2), by striking “<quotedText>the Mayor shall</quotedText>” and all that follows and inserting the following: “on January 1 of each year (or within a reasonable time thereafter), the Mayor shall determine the per centum change in the price index for the preceding year by determining the difference between the index published for December of the preceding year and the index published for December of the second preceding year.”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by amending paragraph (3) to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num><subparagraph class="inline"><num value="A">(A)</num> <chapeau>If (in accordance with paragraph (2)) the Mayor determines in a year (beginning with 1999) that the per centum change <page identifier="/us/stat/111/719">111 STAT. 719</page>in the price index for the preceding year indicates a rise in the price index, each annuity having a commencing date on or before March 1 of the year shall, effective March 1 of the year, be increased by an amount equal to—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>in the case of an annuity having a commencing date on or before March 1 of such preceding year, the per centum change computed under paragraph (2), adjusted to the nearest ⅟10 of 1 per centum; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>in the case of an annuity having a commencing date after March 1 of such preceding year, a pro rata increase equal to the product of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>⅟12 of the per centum change computed under paragraph (2), multiplied by</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the number of months (not to exceed 12 months, counting any portion of a month as an entire month) for which the annuity was payable before the effective date of the increase,</content></subclause> <continuation class="indent0 fontsize10">adjusted to the nearest ⅟10 of 1 per centum.</continuation> </clause> </subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B)</num> <chapeau>On January 1, 1998 (or within a reasonable time thereafter), the Mayor shall determine the per centum change in the price index published for December 1997 over the price index published for June 1997. If such per centum change indicates a rise in the price index, effective March 1, 1998—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>each annuity having a commencing date on or before September 1, 1997, shall be increased by an amount equal to such per centum change, adjusted to the nearest ⅟10 of 1 per centum; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>each annuity having a commencing date after September 1, 1997, and on or before March 1, 1998, shall be increased by a pro rata increase equal to the product of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>⅙ of such per centum change, multiplied by</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the number of months (not to exceed 6 months, counting any portion of a month as an entire month) for which the annuity was payable before the effective date of the increase,</content></subclause> <continuation class="indent0 fontsize10">adjusted to the nearest ⅟ of 1 per centum.”.</continuation> </clause> </subparagraph> </paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Program for Teachers</inline>.—</heading><chapeau>Section 21(b) of the Act entitled “An Act for the retirement of public-school teachers in the District of Columbia”, approved August 7, 1946 (DC Code, sec. 31–1241(b)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in paragraph (1), by striking “<quotedText>The Mayor shall—</quotedText>” and all that follows and inserting the following: “On January 1 of each year (or within a reasonable time thereafter), the Mayor shall determine the per centum change in the price index for the preceding year by determining the difference between the index published for December of the preceding year and the index published for December of the second preceding year.”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by amending paragraph (2) to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num><subparagraph class="inline"><num value="A">(A)</num> <chapeau>If (in accordance with paragraph (1)) the Mayor determines in a year (beginning with 1999) that the per centum change in the price index for the preceding year indicates a rise in the price index, each annuity having a commencing date on or before March 1 of the year shall, effective March 1 of the year, be increased by an amount equal to—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>in the case of an annuity having a commencing date on or before March 1 of such preceding year, the per centum <page identifier="/us/stat/111/720">111 STAT. 720</page>change computed under paragraph (1), adjusted to the nearest ⅟10 of 1 per centum; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>in the case of an annuity having a commencing date after March 1 of such preceding year, a pro rata increase equal to the product of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>⅟12 of the per centum change computed under paragraph (1), multiplied by</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the number of months (not to exceed 12 months, counting any portion of a month as an entire month) for which the annuity was payable before the effective date of the increase,</content></subclause> <continuation class="indent0 fontsize10">adjusted to the nearest ⅟10 of 1 per centum.</continuation> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>On January 1, 1998 (or within a reasonable time thereafter), the Mayor shall determine the per centum change in the price index published for December 1997 over the price index published for June 1997. If such per centum change indicates a rise in the price index, effective March 1, 1998—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>each annuity having a commencing date on or before September 1, 1997, shall be increased by an amount equal to such per centum change, adjusted to the nearest ⅟10 of 1 per centum; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>each annuity having a commencing date after September 1, 1997, and on or before March 1, 1998, shall be increased by a pro rata increase equal to the product of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>⅙ of such per centum change, multiplied by</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the number of months (not to exceed 6 months, counting any portion of a month as an entire month) for which the annuity was payable before the effective date of the increase,</content></subclause> <continuation class="indent0 fontsize10">adjusted to the nearest ⅟10 of 1 per centum.”.</continuation> </clause> </subparagraph> </paragraph> </quotedContent> </content></paragraph> </subsection> </section> </chapter> <chapter> <num value="3">CHAPTER 3—</num><heading>DETERMINATIONS AND REVIEW OF ELIGIBILITY AND PAYMENTS; INFORMATION SHARING</heading> <section> <num value="11021">SEC. 11021.</num> <heading>DETERMINATION OF ELIGIBILITY FOR AND AMOUNT OF FEDERAL BENEFIT PAYMENTS MADE BY TRUSTEE.</heading> <chapeau>Notwithstanding any provision of a District Retirement Program or any other law, rule, or regulation, the Trustee—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>shall determine whether an individual is eligible to receive a Federal benefit payment under this subtitle;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>shall determine the amount and form of an individual’s Federal benefit payment under this subtitle; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>may recoup or recover any amounts paid under this subtitle as a result of errors or omissions by the Trustee, the District Government, or any other person.</content></paragraph> </section> <section> <num value="11022">SEC. 11022.</num> <heading>PROCEDURES FOR RESOLVING CLAIMS ARISING FROM DENIED BENEFIT PAYMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Requiring Notice and Opportunity for Review</inline>.—</heading><chapeau>In accordance with procedures approved by the Secretary, the Trustee shall provide to any individual whose claim for a Federal benefit payment under this subtitle has been denied in whole or in part—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>adequate written notice of such denial, setting forth the specific reasons for the denial in a manner calculated to be understood by the average participant in the District Retirement Program; and<page identifier="/us/stat/111/721">111 STAT. 721</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>a reasonable opportunity for a full and fair review of the decision denying such claim.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Standard for Review</inline>.—</heading><content>Any factual determination made by the Trustee shall be presumed correct unless rebutted by clear and convincing evidence. The Trustee’s interpretation and construction of the benefit provisions of the District Retirement Program and this subtitle shall be entitled to great deference.</content> </subsection> </section> <section> <num value="11023">SEC. 11023.</num> <heading>TRANSFER OF AND ACCESS TO RECORDS OF DISTRICT GOVERNMENT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Within 30 days after the Secretary or the Trustee requests, the District Government shall furnish copies of all records, documents, information, or data the Secretary or the Trustee deems necessary to carry out responsibilities under this subtitle and the contract. Upon request, the District Government shall grant the Secretary or the Trustee direct access to such information systems, records, documents, information or data as the Secretary or Trustee requires to carry out responsibilities under this subtitle or the contract.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Repayment by District Government</inline>.—</heading><content>The District Government shall reimburse the Trust Fund for all costs, including benefit costs, that are attributable to errors or omissions in the transferred records that are identified within 3 years after such records are transferred.</content> </subsection> </section> <section> <num value="11024">SEC. 11024.</num> <heading>FEDERAL INFORMATION SHARING FOR VERIFICATION OF BENEFIT DETERMINATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Except with respect to taxpayer returns and return information subject to section 6103 of the Internal Revenue Code of 1986, the Secretary may—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>secure directly from any department or agency of the United States information necessary to enable the Secretary to verify or confirm benefit determinations under this subtitle; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by regulation authorize the Trustee to review such information for purposes of administering this subtitle and the contract.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Amendments to Internal Revenue Code</inline>.—</heading><chapeau>The Internal Revenue Code of 1986 is amended as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>In section 6103(1), as amended by section 1206(a) of the Taxpayer Bill of Rights 2, by adding at the end the following<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6103">26 USC 6103</ref>.</p></sidenote> new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="16">“(16)</num> <heading><inline class="smallCaps">Disclosure of return information for purposes of administering the district of columbia retirement protection act of 1997</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Upon written request available return information (including such information disclosed to the Social Security Administration under paragraph (1) or (5) of this subsection), relating to the amount of wage income (as defined in section 3121(a) or 3401(a)), the name, address, and identifying number assigned under section 6109, of payors of wage income, taxpayer identity (as defined in subsection 6103(b)(6)), and the occupational status reflected on any return filed by, or with respect to, any individual with respect to whom eligibility for, or the correct amount of, benefits under the District of Columbia Retirement Protection Act of 1997, is sought to be determined, shall be disclosed by the Commissioner of Social <page identifier="/us/stat/111/722">111 STAT. 722</page>Security, or to the extent not available from the Social Security Administration, by the Secretary, to any duly authorized officer or employee of the Department of the Treasury, or a Trustee or any designated officer or employee of a Trustee (as defined in the District of Columbia Retirement Protection Act of 1997), or any actuary engaged by a Trustee under the terms of the District of Columbia Retirement Protection Act of 1997, whose official duties require such disclosure, solely for the purpose of, and to the extent necessary in, determining an individual’s eligibility for, or the correct amount of, benefits under the District of Columbia Retirement Protection Act of 1997.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Disclosure for use in judicial or administrative proceedings</inline>.—</heading><content>Return information disclosed to any person under this paragraph may be disclosed in a judicial or administrative proceeding relating to the determination of an individual’s eligibility for, or the correct amount of, benefits under the District of Columbia Retirement Protection Act of 1997.”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6103">26 USC 6103</ref>.</p></sidenote> <content>In section 6103(a)(3), by striking “<quotedText>(6) or (12)</quotedText>” and inserting “<quotedText>(6), (12), or (16)</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>In section 6103(i)(7)(B)(i), by inserting after “<quotedText>(other than an agency referred to in subparagraph (A))</quotedText>” and before the word “for” the words “or by a Trustee as defined in the District of Columbia Retirement Protection Act of 1997,”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>In section 6103(p)(3)(A), by striking “<quotedText>or (15)</quotedText>” and inserting “<quotedText>(15), or (16)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>In section 6103(D)(4) in the matter preceding subparagraph (A), by striking “<quotedText>or (12)</quotedText>” and inserting “<quotedText>(12), or (16), or any other person described in subsection (l)(16)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>In section 6103(p)(4)(F)(i), by striking “<quotedText>or (9),</quotedText>” and inserting “<quotedText>(9), or (16), or any other person described in subsection (l)(16)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <chapeau>In section 6103(p)(4)(F) in the matter following clause (iii)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by inserting after “<quotedText>any such agency, body or commission</quotedText>” and before the words “for the General Accounting Office” the words “, including an agency or any other person described in subsection (l)(16),”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking “<quotedText>to such agency, body, or commission</quotedText>” and inserting “<quotedText>to such agency, body, or commission, including an agency or any other person described in subsection (l)(16),</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by striking “<quotedText>or (12)(B)</quotedText>” and inserting “<quotedText>, (12)(B), or (16)</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>by inserting after the words “any agent,” and before the words “this paragraph shall” the words “or any person including an agent described in subsection (l)(16),”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>by inserting after the words “such agent” and before “(except that” the words “or other person”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F)</num> <content>by inserting after the words “an agent,” and before the words “any report” the words “or any person including an agent described in subsection (l)(16),”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s7213">26 USC 7213</ref>.</p></sidenote> <content>In section 7213(a)(2), by striking “<quotedText>or (15),</quotedText>” and inserting “<quotedText>(15), or (16)</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6103">26 USC 6103 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Confidentiality</inline>.—</heading><content>The Secretary may issue regulations governing the confidentiality of the information obtained pursuant <page identifier="/us/stat/111/723">111 STAT. 723</page>to subsection (a) and the provisions of law amended by subsection (b).</content> </subsection> </section> </chapter> <chapter> <num value="4">CHAPTER 4—</num><heading>DISTRICT OF COLUMBIA FEDERAL PENSION LIABILITY TRUST FUND</heading> <section> <num value="11031">SEC. 11031.</num> <heading>CREATION OF TRUST FUND.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Establishment</inline>.—</heading><content>There is established on the books of the Treasury the District of Columbia Federal Pension Liability Trust Fund, consisting of the assets transferred pursuant to section 11033 and any income earned on the investment of such assets pursuant to subsection (b).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Investment of Assets</inline>.—</heading><content>The Trustee may invest the assets of the Trust Fund in private securities and any other form of investment deemed appropriate by the Secretary.</content> </subsection> </section> <section> <num value="11032">SEC. 11032.</num> <heading>USES OF AMOUNTS IN TRUST FUND.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Amounts in the Trust Fund shall be used—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>to make Federal benefit payments under this subtitle;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>subject to subsection (b), to cover the reasonable and necessary expenses of administering the Trust Fund under the contract entered into pursuant to section 11035(b); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>for such other purposes as are specified in this subtitle.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Special Rules Regarding Administrative Expenses</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Budgeting; certification and approval</inline>.—</heading><content>The administrative expenses of the Trust Fund shall be paid in accordance with an annual budget set forth by the Trustee which shall be subject to certification and approval by the Secretary.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Use of district retirement fund for interim administration</inline>.—</heading><content>The Secretary is authorized to requisition from the District Retirement Fund such sums as are necessary to administer the Trust Fund until assets are transferred to the Trust Fund pursuant to section 11033.</content></paragraph> </subsection> </section> <section> <num value="11033">SEC. 11033.</num> <heading>TRANSFER OF ASSETS AND OBLIGATIONS OF DISTRICT RETIREMENT FUNDS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>As of the replacement plan adoption date, all obligations to make Federal benefit payments and all assets of the District Retirement Fund as of the replacement plan adoption date (except as provided in subsections (b) and (c)) shall be transferred to the Trust Fund.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Designation of Assets to be Retained by District Retirement Fund</inline>.—</heading><content>The Secretary shall designate assets with a value of $1,275 billion that shall not be transferred from the District Retirement Fund under subsection (a). The Secretary’s designation and valuation of the assets shall be final and binding.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Exception for Certain Employee Contributions</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subsection (a) shall not apply to assets consisting of the District Retirement Fund consisting of any employee contributions deducted and withheld after the freeze date or any interest thereon (computed at a rate and in a manner determined by the Secretary).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Employee contributions defined</inline>.—</heading><content>In paragraph (1), the term “employee contributions” means amounts deducted and withheld from the salaries of covered District employees and paid to the District Retirement Fund (and, in the case of teachers, amounts of additional deposits paid to the District <page identifier="/us/stat/111/724">111 STAT. 724</page>Retirement Fund), pursuant to the District Retirement Program.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Responsibilities of District Government</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The transfer of assets from the District Retirement Fund under this section shall be made in accordance with the direction of the Secretary. The District Government shall promptly take all steps, and execute all documents, that the Secretary deems necessary to effect the transfer.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Final reconciliation of accounts</inline>.—</heading><content>As soon as practicable after the replacement plan adoption date, the District Government shall furnish the Trustee a final reconciliation of accounts in connection with the transfer of assets and obligations to the Trust Fund. The allocation of assets under this section shall be adjusted in accordance with this reconciliation.</content></paragraph> </subsection> </section> <section> <num value="11034">SEC. 11034.</num> <heading>TREATMENT OF TRUST FUND UNDER CERTAIN LAWS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Internal Revenue Code</inline>.—</heading><chapeau>For purposes of the Internal Revenue Code of 1986—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>the Trust Fund shall be treated as a trust described in section 401(a) of the Code which is exempt from taxation under section 501(a) of the Code;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>any transfer to or distribution from the Trust Fund shall be treated in the same manner as a transfer to or distribution from a trust described in section 401(a) of the Code; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>the benefits provided by the Trust Fund shall be treated as benefits provided under a governmental plan maintained by the District of Columbia.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading>ERISA.—</heading><content>For purposes of the Employee Retirement Income Security Act of 1974, the benefits provided by the Trust Fund shall be treated as benefits provided under a governmental plan maintained by the District of Columbia.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Application of Certain Future Amendments to Internal Revenue Code</inline>.—</heading><content>To the extent that any provision of subpart A of part I of subchapter D of chapter 1 of the Internal Revenue Code of 1986 (26 U.S.C. 401 et seq.) is amended after the date of the enactment of this Act, such provision as amended shall apply to the Trust Fund only to the extent the Secretary determines that application of the provision as amended is consistent with the administration of this subtitle.</content> </subsection> </section> <section> <num value="11035">SEC. 11035.</num> <heading>ADMINISTRATION THROUGH TRUSTEE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>As soon as practicable after the enactment of this subtitle, the Secretary shall select a Trustee to administer the Trust Fund and otherwise carry out the responsibilities and duties specified in this subtitle in accordance with the contract described in subsection (b).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Contract</inline>.—</heading><content>The Secretary shall enter into a contract with the Trustee to provide for the management, investment, control and auditing of Trust Fund assets, the making of Federal benefit payments under this subtitle from the Trust Fund, and such other matters as the Secretary deems appropriate. The Secretary shall enforce the provisions of the contract and otherwise monitor the administration of the Trust Fund.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Reports</inline>.—</heading><content>The Trustee shall report to the Secretary, in a form and manner and at such intervals as the Secretary may prescribe, on any matters or transactions relating to the Trust Fund, including financial matters, as the Secretary may require.<page identifier="/us/stat/111/725">111 STAT. 725</page></content> </subsection> </section> </chapter> <chapter> <num value="5">CHAPTER 5—</num><heading>RESPONSIBILITIES OF DISTRICT GOVERNMENT</heading> <section> <num value="11041">SEC. 11041.</num> <heading>INTERIM ADMINISTRATION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Administration of Benefits Until Appointment of Trustee</inline>.—</heading><content>Notwithstanding chapter 2, after the enactment of this subtitle the District Government shall continue to discharge its duties and responsibilities under the District Retirement Program and the District Retirement Fund (as such duties and responsibilities are modified by this subtitle), including the responsibility for Federal benefit payments, until such time as the Secretary notifies the District Government that the Secretary has directed the Trustee to carry out the duties and responsibilities required under the contract.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Reimbursement From Trust Fund</inline>.—</heading><chapeau>The Trustee shall reimburse the District Government for any administrative expenses incurred by the District Government in carrying out subsection (a)—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>if the Trustee finds such expenses to be reasonable and necessary; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>to the extent that the District Government is not reimbursed for such expenses from other sources.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Making District Retirement Fund Whole</inline>.—</heading><content>The District Government shall reimburse the District Retirement Fund for any benefits paid inconsistent with this subtitle from the District Retirement Fund between the freeze date and the replacement plan adoption date.</content> </subsection> </section> <section> <num value="11042">SEC. 11042.</num> <heading>REPLACEMENT PLAN.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Adoption by District Government</inline>.—</heading><content>Not later than one year after the date of the enactment of this subtitle, the District Government shall adopt a replacement plan for pension benefits for covered District employees, effective as of the freeze date.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Replacement Plan Imposed If District Government Fails to Adopt Plan</inline>.—</heading><content>If the District Government fails to adopt a replacement plan within the period prescribed in subsection (a), the retirement program applicable to police, firefighters, and teachers under the laws of the District of Columbia in effect as of June 1, 1997 (except as otherwise amended by this Act), including all requirements of the program regarding benefits, contributions, and cost-of-living adjustments, shall be treated as the replacement plan for purposes of this subtitle.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">No Payment of Amounts Paid as Federal Benefit Payment</inline>.—</heading><content>Notwithstanding any provision of the Reform Act or any other law, rule, or regulation, the District Government is not required to pay any amount under any replacement plan under this subtitle if the amount is paid as a Federal benefit payment under this subtitle.</content> </subsection> </section> </chapter> <chapter> <num value="6">CHAPTER 6—</num><heading>FINANCING OF BENEFIT PAYMENTS AFTER DEPLETION OF TRUST FUND</heading> <section> <num value="11051">SEC. 11051.</num> <heading>CREATION OF FEDERAL SUPPLEMENTAL FUND.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Establishment</inline>.—</heading><chapeau>There is established on the books of the Treasury the Federal Supplemental District of Columbia Pension Fund, which shall be administered by the Secretary and shall consist of the following assets:<page identifier="/us/stat/111/726">111 STAT. 726</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Amounts deposited into such Fund under the provisions of this subtitle.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Any amount otherwise appropriated to such Fund.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Any income earned on the investment of the assets of such Fund pursuant to subsection (b).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Investment of Assets</inline>.—</heading><content>The Secretary shall invest such portion of the Federal Supplemental Fund as is not in the judgment of the Secretary required to meet current withdrawals. Such investments shall be in public debt securities with maturities suitable to the needs of the Federal Supplemental Fund, as determined by the Secretary, and bearing interest at rates determined by the Secretary, taking into consideration current market yields on outstanding marketable obligations of the United States of comparable maturities.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Recordkeeping for Actuarial Status</inline>.—</heading><content>The Secretary shall provide for the keeping of such records as are necessary for determining the actuarial status of the Federal Supplemental Fund.</content> </subsection> </section> <section> <num value="11052">SEC. 11052.</num> <heading>USES OF AMOUNTS IN FUND.</heading> <content>Amounts in the Federal Supplemental Fund shall be used for the accumulation of funds in order to finance obligations of the Federal Government for benefits and necessary administrative expenses under the provisions of this subtitle, in accordance with the methodology selected by the Secretary under section 11054(b), except that payments from the Fund for administrative expenses may be made only the extent and in such amounts as are provided in advance in appropriations acts.</content> </section> <section> <num value="11053">SEC. 11053.</num> <heading>DETERMINATION OF ANNUAL PAYMENT INTO FEDERAL SUPPLEMENTAL FUND.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>At the end of each applicable fiscal year the Secretary shall promptly pay into the Federal Supplemental Fund from the General Fund of the Treasury an amount equal to the sum of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>the annual amortization amount for the year (which may not be less than zero); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>the covered administrative expenses for the year.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <chapeau><inline class="smallCaps">Determination of Amounts</inline>.—For purposes of this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>The “original unfunded liability” is the amount that is the present value as of the freeze date of future benefits payable from the Federal Supplemental Fund.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>The “annual amortization amount” is the amount determined by the enrolled actuary to be necessary to amortize in equal annual installments (until fully amortized)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>the original unfunded liability over a 30-year period;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>a net experience gain or loss over a 10-year period; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>any other changes in actuarial liability over a 20-year period.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>The “covered administrative expenses” are the expenses determined by the Secretary (on an annual basis) to be necessary to administer the Federal Supplemental Fund.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Timing</inline>.—</heading><content>The first applicable fiscal year under subsection (a) is the first fiscal year that ends more than six months after the replacement plan adoption date.<page identifier="/us/stat/111/727">111 STAT. 727</page></content> </subsection> </section> <section> <num value="11054">SEC. 11054.</num> <heading>DETERMINATION OF METHODOLOGY FOR MAKING PAYMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Notice to President and Congress</inline>.—</heading><content>Not later than 18 months before the time that assets remaining in the Trust Fund are projected to be insufficient for making Federal benefit payments and covering necessary administrative expenses when due, the Secretary shall so advise the President and the Congress.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Selection of Methodology</inline>.—</heading><chapeau>Before all available assets of the Trust Fund have been depleted, the Secretary shall determine whether Federal benefit payments and necessary administrative expenses under this subtitle shall be made by one of the following methods:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Continuation of the Trust Fund using payments from the Federal Supplemental Fund.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>Discontinuation of the Trust Fund, with payments made—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by direct payment by the Secretary from the Federal Supplemental Fund; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>from the Federal Supplemental Fund through another department or agency of the United States.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Arrangements by Secretary</inline>.—</heading><content>The Secretary shall make appropriate arrangements to implement the determinations made in this subsection.</content> </subsection> </section> <section> <num value="11055">SEC. 11055.</num> <heading>SPECIAL REQUIREMENTS UPON DISCONTINUATION OF TRUST FUND.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Successor to Trustee</inline>.—</heading><content>If the Secretary determines that the Trust Fund shall be discontinued after it has been depleted of assets, the Secretary shall appoint a successor to the Trustee to administer the requirements of this subtitle, with the same powers and subject to the same conditions as were applicable to the Trustee.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Continuing Application of Terms and Conditions</inline>.—</heading><content>The methodology selected by the Secretary under section 11054(b), and the payment of benefits pursuant to such methodology, shall be subject to the same arrangements, terms, and conditions as were applicable under this subtitle to the Trust Fund and the benefits paid under the Trust Fund (including provisions relating to the treatment of the Trust Fund under certain laws).</content> </subsection> </section> </chapter> <chapter> <num value="7">CHAPTER 7—</num><heading>REPORTS</heading> <section> <num value="11061">SEC. 11061.</num> <heading>ANNUAL VALUATIONS AND REPORTS BY ENROLLED ACTUARY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Determination of Actuarial Valuations</inline>.—</heading><content>The Trustee shall engage an enrolled actuary (as defined in section 7701(a)(35) of the Internal Revenue Code of 1986) who is a member of the American Academy of Actuaries to shall perform an annual actuarial valuation (in a manner and form determined by the Secretary) of the Trust Fund and the Federal Supplemental Fund for obligations assumed by the Federal Government under this subtitle.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Annual Report on Status of Funds</inline>.—</heading><chapeau>The enrolled actuary shall prepare and submit to the Secretary and the Trustee an annual report on the actuarial status of the Trust Fund and the Federal Supplemental Fund, and shall include in the report—<page identifier="/us/stat/111/728">111 STAT. 728</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>a projection of when assets in the Trust Fund will be insufficient to pay benefits and necessary administrative expenses when due; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>a determination of the annual payment to the Federal Supplemental Fund under section 11053.</content></paragraph> </subsection> </section> <section> <num value="11062">SEC. 11062.</num> <heading>REPORTS BY COMPTROLLER GENERAL.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>The Comptroller General is authorized to conduct evaluations of the administration of this subtitle to ensure that the Trust Fund and Federal Supplemental Fund are being properly administered and shall report the findings of such evaluations to the Secretary and the Congress.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Access to Information</inline>.—</heading><content>For the purpose of evaluations under subsection (a) the Comptroller General, subject to section 6103 of the Internal Revenue Code of 1986, shall have access to and the right to copy any books, accounts, records, correspondence or other pertinent documents that are in the possession of the Secretary or the Trustee, or any contractor or subcontractor of the Secretary or the Trustee.</content> </subsection> </section> </chapter> <chapter> <num value="8">CHAPTER 8—</num><heading>JUDICIAL ENFORCEMENT</heading> <section> <num value="11071">SEC. 11071.</num> <heading>JUDICIAL REVIEW.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>A civil action may be brought—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by a participant or beneficiary to enforce or clarify rights to benefits from the Trust Fund or Federal Supplemental Fund under this subtitle;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>by the Trustee—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>to enforce any claim arising (in whole or in part) under this subtitle or the contract; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>to recover benefits improperly paid from the Trust Fund or Federal Supplemental Fund or to clarify a participant’s or beneficiary’s rights to benefits from the Trust Fund or Federal Supplemental Fund; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by the Secretary to enforce any provision of this subtitle or the contract.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Treatment of Trust Fund</inline>.—</heading><content>The Trust Fund may sue and be sued as an entity.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Exclusive Remedy</inline>.—</heading><content>This chapter shall be the exclusive means for bringing actions against the Trust Fund, the Trustee or the Secretary under this subtitle.</content> </subsection> </section> <section> <num value="11072">SEC. 11072.</num> <heading>JURISDICTION AND VENUE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>The United States District Court for the District of Columbia shall have exclusive jurisdiction and venue, regardless of the amount in controversy, of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>civil actions brought by participants or beneficiaries pursuant to this subtitle, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>any other action otherwise arising (in whole or part) under this subtitle or the contract.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Review by Court of Appeals</inline>.—</heading><content>Notwithstanding any other provision of law, any order of the United States District Court for the District of Columbia issued pursuant to an action described in subsection (a) that concerns the validity or enforceability of any provision of this subtitle or seeks injunctive relief against the Secretary or Trustee under this subtitle shall be reviewable only pursuant to a notice of appeal to the United States Court of Appeals for the District of Columbia Circuit.<page identifier="/us/stat/111/729">111 STAT. 729</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Review by Supreme Court</inline>.—</heading><content>Notwithstanding any other provision of law, review by the Supreme Court of the United States of a decision of the Court of Appeals that is issued pursuant to subsection (b) may be had only if the petition for relief is filed within 20 calendar days after the entry of such decision.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Restrictions on Declaratory or Injunctive Relief</inline>.—</heading><content>No order of any court granting declaratory or injunctive relief against the Secretary or the Trustee shall take effect during the pendency of the action before such court, during the time an appeal may be taken, or (if an appeal is taken or petition for certiorari filed) during the period before the court has entered its final order disposing of the action.</content> </subsection> </section> <section> <num value="11073">SEC. 11073.</num> <heading>STATUTE OF LIMITATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Action for Benefits</inline>.—</heading><content>Any civil action by an individual with respect to a Federal benefit payment under this subtitle shall be commenced within 180 days of a final benefit determination.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Action for Breach of Contract or Other Violations</inline>.—</heading><chapeau>Except as provided in subsection (c), any civil action for breach of the contract or any other violation of this subtitle shall be commenced within the later of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>six years after the last act that constituted the alleged breach or violation or, in the case of an omission, six years after the last date on which the alleged breach or violation could have been cured; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>three years after the earliest date on which the plaintiff knew or could have reasonably been expected to have known of the act or omission on which the action is based.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Special Rule for Actions Against Secretary</inline>.—</heading><content>Notwithstanding subsection (b), any action against the Secretary arising (in whole or part) under this subtitle or the contract shall be commenced within one year of the events giving rise to the cause of action.</content> </subsection> </section> <section> <num value="11074">SEC. 11074.</num> <heading>TREATMENT OF MISAPPROPRIATION OF FUND AMOUNTS AS FEDERAL CRIME.</heading> <content>The provisions of section 664 of title 18, United States Code (relating to theft or embezzlement from employee benefit plans), shall apply to the Trust Fund and the Federal Supplemental Fund.</content> </section> </chapter> <chapter> <num value="9">CHAPTER 9—</num><heading>MISCELLANEOUS</heading> <section> <num value="11081">SEC. 11081.</num> <heading>COORDINATION BETWEEN SECRETARY, TRUSTEE, AND DISTRICT GOVERNMENT.</heading> <content>The Secretary, Trustee, and District Government shall carry out responsibilities under this subtitle and under the contract in a manner which promotes the cost-effective and efficient administration of benefit payments under the District Retirement Programs, and in a manner which avoids unnecessary interruptions and delays in paying individuals the full benefits to which they are entitled under such Programs.</content> </section> <section> <num value="11082">SEC. 11082.</num> <heading>STUDY OF ALTERNATIVES FOR FINANCING FEDERAL OBLIGATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>As soon as practicable after the date of the<sidenote><p class="indent0 firstIndent0 fontsize8">Contracts.</p></sidenote> enactment of this subtitle, the Secretary shall enter into a contract with an independent consultant to conduct a study of actuarial alternatives for financing the federal obligations assumed under <page identifier="/us/stat/111/730">111 STAT. 730</page>this subtitle, together with an analysis of the impact of each alternative<sidenote><p class="indent0 firstIndent0 fontsize8">Records.</p></sidenote> on the federal budget. The Secretary and the District Government shall cooperate with the consultant and shall provide direct access to such information systems, records, documents, information, or data as will enable the consultant to conduct the study.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> <heading><inline class="smallCaps">Deadline</inline>.—</heading><content>The contract entered into under subsection (a) shall require the consultant to report the results of the study not later than 12 months after the date of enactment of this Act.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">No Effect on Federal Obligations</inline>.—</heading><content>Nothing in this section may be construed to affect any obligation of the Federal Government to make payments under this subtitle.</content> </subsection> </section> <section> <num value="11083">SEC. 11083.</num> <heading>ISSUANCE OF REGULATIONS BY SECRETARY.</heading> <content>The Secretary is authorized to issue regulations to implement, interpret, administer and carry out the purposes of this subtitle, and, in the Secretary’s discretion, those regulations may have retroactive effect.</content> </section> <section> <num value="11084">SEC. 11084.</num> <heading>EFFECT ON REFORM ACT AND OTHER LAWS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Reform Act</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>This subtitle supersedes any provision of the Reform Act inconsistent with this subtitle and the regulations thereunder.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Termination of payments to district retirement funds</inline>.—</heading><content>Section 144 of the Reform Act (DC Code, sec. 1–724) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <content>Notwithstanding any other provision of this Act, no Federal payments may be made to any Fund established by this title for any fiscal year after fiscal year 1997.”.</content> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">No Effect on Tax Treatment of Benefits</inline>.—</heading><content>Except as otherwise specifically provided, nothing in this subtitle may be construed to affect the application of any provision of the Internal Revenue Code of 1986 to any annuity or other benefit provided to or on behalf of any individual, including any disability benefit or any portion of a retirement benefit attributable to an individual’s disability status.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">No Effect on Benefits for Park Police and Secret Service</inline>.—</heading><content>Nothing in this subtitle shall be deemed to alter or amend in any way the provisions of existing law (including the Reform Act) relating to the program of annuities, other retirement benefits, or medical benefits for members and officers, retired members and officers, and survivors thereof, of the United States Park Police force, the United States Secret Service, or the United States Secret Service Uniformed Division.</content> </subsection> </section> <section> <num value="11085">SEC. 11085.</num> <heading>REFERENCE TO NEW FEDERAL PROGRAM FOR RETIREMENT OF JUDGES OF DISTRICT OF COLUMBIA COURTS.</heading> <content>For provisions describing the retirement program for judges and judicial personnel of the District of Columbia, see subchapter B of chapter 4 of subtitle C.</content> </section> <section> <num value="11086">SEC. 11086.</num> <heading>FULL FAITH AND CREDIT.</heading> <content>Federal obligations for benefits under this subtitle are backed by the full faith and credit of the United States.</content> </section> <section> <num value="11087">SEC. 11087.</num> <heading>SEVERABILITY OF PROVISIONS.</heading> <content>If any provision of this subtitle, or the application of such provision to any person or circumstances, shall be held invalid, <page identifier="/us/stat/111/731">111 STAT. 731</page>the remainder of this subtitle, or the application of such provision to persons or circumstances other them those as to which it is held invalid, shall not be affected thereby.</content> </section> </chapter> </subtitle> <subtitle> <num value="B">Subtitle B—</num><heading>Management Reform Plans</heading><sidenote><p class="indent0 firstIndent0 fontsize8">District of Columbia Management Reform Act of 1997.</p></sidenote> <section> <num value="11101">SEC. 11101.</num> <heading>SHORT TITLE.</heading> <content>This subtitle may be cited as the “District of Columbia Management Reform Act of 1997”.</content> </section> <section> <num value="11102">SEC. 11102. </num><heading>MANAGEMENT REFORM PLANS FOR DISTRICT GOVERNMENT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>In accordance with the provisions of this subtitle, the District of Columbia Financial Responsibility and Management Assistance Authority (hereafter in this subtitle referred to as the “Authority”) and the government of the District of Columbia shall develop and implement management reform plans—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>for each of the departments of the government of the District of Columbia described in paragraph (1) of subsection (b); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>for all entities of the government of the District of Columbia with respect to the items described in paragraph (2) of subsection (b).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Departments and Items Subject to Plans</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Departments described</inline>.—</heading><chapeau>The departments referred to in this paragraph are as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>The Department of Administrative Services.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>The Department of Consumer and Regulatory Affairs.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>The Department of Corrections.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>The Department of Employment Services.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>The Department of Fire and Emergency Medical Services.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F)</num> <content>The Department of Housing and Community Development.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">(G)</num> <content>The Department of Human Services.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">(H)</num> <content>The Department of Public Works.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="I">(I)</num> <content>The Public Health Department.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Items described</inline>.—</heading><chapeau>The items referred to in this paragraph are as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Asset management.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Information resources management.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>Personnel.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>Procurement.</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="11103">SEC. 11103.</num> <heading>PROCEDURES FOR DEVELOPMENT OF PLANS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Contracts With Consultants</inline>.—</heading><content>Not later than 30 days after the date of the enactment of this Act (or, at the option of the Authority and upon notification to Congress, not later than 60 days after such date), the Authority shall enter into contracts with consultants to develop the management reform plans under this subtitle.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Deadline for Submission of Plans</inline>.—</heading><content>Under a contract entered into with the Authority under subsection (a), a consultant <page identifier="/us/stat/111/732">111 STAT. 732</page>shall submit a completed management reform plan for the department or item involved within 90 days (or, at the option of the Authority, within 120 days).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Authorization of Appropriations</inline>.—</heading><content>There are authorized to be appropriated to the Authority such sums as may be necessary to carry out the contracts entered into under this section.</content> </subsection> </section> <section> <num value="11104">SEC. 11104.</num> <heading>IMPLEMENTATION OF PLANS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Establishment of Management Reform Teams</inline>.—</heading><chapeau>With respect to each management reform plan developed under this subtitle, there shall be a management reform team consisting of the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>The Chair of the Authority (or the Chair’s designee).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>The Chair of the Council of the District of Columbia (or the Chair’s designee).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>The Mayor of the District of Columbia (or the Mayor’s designee).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>In the case of a management reform plan for a department of the government of the District of Columbia, the head of the department involved.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Responsibility for Implementation of Plans</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Plans for specific departments</inline>.—</heading><content>In the case of a management reform plan for a department of the government of the District of Columbia, the head of the department involved shall take any and all steps within his or her authority to implement the terms of the plan, in consultation and coordination with the other members of the management reform team.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Plans for items covering entire district government</inline>.—</heading><content>In the case of a management reform plan for an item described in section 11102(b)(2), each member of the management reform team shall take any and all steps within the member’s authority to implement the terms of the plan, under the direction and subject to the instructions of the Chair of the Authority (or the Chair’s designee).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Report to authority</inline>.—</heading><content>In carrying out any of the management reform plans under this section, the member of the management reform team described in subsection (a)(4) shall report to the Authority.</content></paragraph> </subsection> </section> <section> <num value="11105">SEC. 11105.</num> <heading>REFORM OF POWERS AND DUTIES OF DEPARTMENT HEADS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Appointment and Removal</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Appointment</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>During a control year, the head of each department of the government of the District of Columbia described in section 11102(b)(1) shall be appointed by the Mayor as follows:</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>Prior to appointment, the Authority may submit recommendations for the appointment to the Mayor.</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Notification.</p></sidenote> <content>In consultation with the Authority and the Council, the Mayor shall nominate an individual for appointment and notify the Council of the nomination.</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Notification.</p></sidenote> <content>After the expiration of the 7-day period which begins on the date the Mayor notifies the Council of the nomination under clause (ii), the Mayor shall notify the Authority of the nomination.</content></clause> <clause class="indent3 fontsize10"><num value="iv">(iv)</num> <content>The nomination shall be effective subject to approval by a majority vote of the Authority.<page identifier="/us/stat/111/733">111 STAT. 733</page></content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Appointment by authority if no nomination made within 30 days</inline>.—</heading><content>During a control year, if the Mayor fails to nominate an individual to fill a vacancy in the position of the head of any of the departments described in section 11102(b)(1) during the 30-day period which begins on the date the vacancy begins (or during such longer period as the Authority may establish, upon notification to Congress), the Authority shall appoint an individual to fill the vacancy.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <heading><inline class="smallCaps">Positions deemed vacant upon enactment</inline>.—</heading><content>For purposes of this paragraph, a vacancy shall be deemed to exist in the position of the head of each of the departments described in section 11102(b)(1) upon the date of the enactment of this Act. Nothing in this subparagraph shall be deemed to affect any of the powers and duties of any individual serving as the head of such a department as of such date.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Removal</inline>.—</heading><content>During a control year, the head of any of the departments of the government of the District of Columbia described in section 11102(b)(1) may be removed by the Authority or by the Mayor with the approval of the Authority.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Control year defined</inline>.—</heading><content>In this subsection, the term “control year” has the meaning given such term in section 305(4) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Control Over Personnel</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Notwithstanding any other provision of law and except as provided in paragraph (3), all personnel of the departments of the government of the District of Columbia described in section 11102(b)(1) shall be appointed by and shall act under the direction and control of the head of the department involved.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Reassignment of personnel</inline>.—</heading><content>The head of each of the departments described in section 11102(b)(1) may reassign any personnel of the department in such manner as the head considers appropriate.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Requirements for adverse actions</inline>.—</heading><chapeau>The head of each of the departments described in section 11102(b)(1) may take corrective or adverse action against any personnel of the department pursuant to rules (promulgated consistent with the publication and comment provisions of the District of Columbia Administrative Procedure Act) which—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>provide that adverse actions may only be taken for cause;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>define the causes for which a corrective or adverse action may be taken;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>require prior written notice of the grounds on which the action is proposed to be taken;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>require an opportunity to be heard (which may be in writing only) before the action becomes effective, unless the head of the department finds that taking action prior to the exercise of such opportunity is necessary to protect the integrity of government operations, in which case a hearing shall be afforded within a reasonable time after the action becomes effective; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>provide that the head of the department shall be the final administrative authority with respect to the <page identifier="/us/stat/111/734">111 STAT. 734</page>action, subject to judicial review of the record of the administrative proceeding in an action against the District of Columbia to be brought only in the Superior Court for the District of Columbia.</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="11106">SEC. 11106.</num> <heading>NO EFFECT ON POWERS OF FINANCIAL RESPONSIBILITY AND MANAGEMENT ASSISTANCE AUTHORITY.</heading> <content>Nothing in this subtitle may be construed to affect the authority of the District of Columbia Financial Responsibility and Management Assistance Authority to carry out any of its powers under the District of Columbia Financial Responsibility and Management Assistance Act of 1995.</content> </section> </subtitle> <subtitle> <num value="C">Subtitle C—</num><heading>Criminal Justice</heading> <chapter> <num value="1">CHAPTER 1—</num><heading>CORRECTIONS</heading> <section> <num value="11201">SEC. 11201.</num> <heading>BUREAU OF PRISONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Felons Sentenced Pursuant to the Truth-in-Sentencing Requirements</inline>.—</heading><content>Not later than October 1, 2001, any person who has been sentenced to incarceration pursuant to the District of Columbia Code or the truth-in-sentencing system as described in section 11211 shall be designated by the Bureau of Prisons to a penal or correctional facility operated or contracted for by o the Bureau of Prisons, for such term of imprisonment as the court may direct. Such persons shall be subject to any law or regulation applicable to persons committed for violations of laws of the United States consistent with the sentence imposed.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Felons Sentenced Pursuant to the D.C. Code</inline>.—</heading><content>Notwithstanding any other provision of law, not later than December 31, 2001, the Lorton Correctional Complex shall be closed and the felony population sentenced pursuant to the District of Columbia Code residing at the Lorton Correctional Complex shall be transferred to a penal or correctional facility operated or contracted for by the Bureau of Prisons. Such persons shall be subject to any law or regulation applicable to persons committed for violations of laws of the United States consistent with the sentence imposed, and the Bureau of Prisons shall be responsible for the custody, care, subsistence, education, treatment and training of such persons.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Privatization</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Transition of inmates from lorton</inline>.—</heading><chapeau>The Bureau of Prisons shall house, in private contract facilities—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>at least 2000 District of Columbia sentenced felons by December 31, 1999; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>at least 50 percent of the District of Columbia sentenced felony population by September 30, 2003.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Duties of deputy attorney general</inline>.—</heading><chapeau>The Deputy Attorney General shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>be responsible for overseeing Bureau of Prisons privatization activities; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> <content>submit a report to Congress on October 1 of each year detailing the progress and status of compliance with privatization requirements.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Duties of attorney general</inline>.—</heading><chapeau>The Attorney General shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>conduct a study of correctional privatization, including a review of relevant research and related legal issues, <page identifier="/us/stat/111/735">111 STAT. 735</page>and comparative analysis of the cost effectiveness and feasibility of private sector and Federal, State, and local governmental operation of prisons and corrections programs at all security levels; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>submit a report to Congress no later than one<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> year after the dater of enactment of this Act.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Site Acquisition and Construction</inline>.—</heading><content>In order to house the District of Columbia felony inmate population the Bureau of Prisons shall acquire land, construct and build new facilities at sites selected by the Bureau of Prisons, or contract for appropriate bed space, but no facilities may be built on the grounds of the Lorton Reservation.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">National Capital Planning</inline>.—</heading><content>Notwithstanding any other provision of law, the requirements of the National Capital Planning Act of 1952 (40 U.S.C. 71 et seq.) shall not apply to any actions taken by the Bureau of Prisons or its agents or employees.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Department of Corrections Authority</inline>.—</heading><content>The District of Columbia Department of Corrections shall remain responsible for the custody, care, subsistence, education, treatment, and training of any person convicted of a felony offense pursuant to the District of Columbia Code and housed at the Lorton Correctional Complex until December 31, 2001, or the date on which the last inmate housed at the Lorton Correctional Complex is designated by the Bureau of Prisons, whichever is earlier.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g)</num> <heading><inline class="smallCaps">Lorton Correctional Complex</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Transfer of functions</inline>.—</heading><content>Notwithstanding any other provision of law, to the extent the Bureau of Prisons assumes functions of the Department of Corrections under this subtitle, the Department is no longer responsible for such functions and the provisions of “An Act to create a Department of Corrections in the District of Columbia”, approved June 27, 1946 (D.C. Code 24–441, 442), that apply with respect to such functions are no longer applicable. Except as provided in paragraph (2), any property on which the Lorton Correctional Complex is located shall be transferred to the Department of the Interior.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Transfer of land</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">(i)</num> <heading><inline class="smallCaps">Fairfax county water authority</inline>.—</heading><content>150 acres of parcel 106–4–001–54 located west of Ox Road (State Route 123) on which the Lorton Correctional Complex is located shall be transferred, without consideration, to the Fairfax County Water Authority of Fairfax, Virginia.</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <heading><inline class="smallCaps">Fairfax county department of parks and recreation</inline>.—</heading><content>Any acres of parcel 106–4–001–54 located west of Ox Road (State Route 123) on which the Lorton Correctional Complex is located not transferred under clause (i) shall be assigned to the Department of the Interior. National Park Service, for conveyance to the Fairfax County Department of Parks and Recreation for recreational purposes pursuant to the section 203(kM2) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 484(k)(2)).</content></clause> </subparagraph> <paragraph class="indent1 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Condition of transfer</inline>.—<page identifier="/us/stat/111/736">111 STAT. 736</page></heading> <clause class="indent3 fontsize10"><num value="i">(i)</num> <heading>Water services.—</heading><content>The United States Government shall not transfer any parcels under this paragraph unless the Fairfax County Water Authority certifies that it will continue to provide water services to the Lorton Correctional Complex at the rate it provided water services prior to the transfer.</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <heading><inline class="smallCaps">Restriction on transfer</inline>.—</heading><chapeau>No Federal agency may transfer the property under this paragraph until the prospective recipient of the property provides to such agency—</chapeau> <subclause class="indent4 fontsize10"><num value="I">(I)</num> <content>a land description survey suitable for transferring property under Virginia law; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">(II)</num> <content>any necessary surveys to determine the presence of any hazardous substances, contaminants or pollutants.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <heading><inline class="smallCaps">Lorton correctional complex</inline>.—</heading><content>The Lorton Correctional Complex shall remain available for the District of Columbia Department of Corrections to house District of Columbia felony inmates until the last inmate at the Complex has been designated by the Bureau of Prisons or until December 31, 2003, whichever is earlier.</content></clause> </paragraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <heading><inline class="smallCaps">Authorization</inline>.—</heading><content>The General Services Administration and the National Park Service is authorized to expend any funds necessary to ensure that the transfer or conveyance under subparagraph (A) complies with all applicable environmental and historic preservation laws.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Water mains</inline>.—</heading><content>Any water mains located on or across the Lorton Correctional Complex on the date of the transfers under paragraph (2), that are owned by the Fairfax County Water Authority and provide water to the public, shall be permitted to remain in place, and shall be operated, maintained, repaired, and replaced by the Fairfax County Water Authority or a successor agency furnishing water to the public in Fairfax County or adjacent jurisdictions, but shall not interfere with operations of the Lorton Correctional Complex.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g)</num> <heading><inline class="smallCaps">District of Columbia Corrections Information Council</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Establishment</inline>.—</heading><content>There is established a council to be known as the District of Columbia Correction Information Council (hereafter referred to as “Council”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Membership</inline>.—</heading><chapeau>The Council shall be composed of 3 members appointed as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>2 individuals appointed by the mayor of the District of Columbia.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>1 individual appointed by the Council of the District of Columbia.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Compensation</inline>.—</heading><content>Members of the Council may not receive pay, allowances, or benefits by reason of their service on the Council.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Duties</inline>.—</heading><content>The Council shall report to the Director of the Bureau of Prisons with advice and information regarding matters affecting the District of Columbia sentenced felon population.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h)</num> <heading><inline class="smallCaps">Timing of Inmate Transfers</inline>.—</heading><content>As soon as practicable after the date of the enactment of this Act, the Director of the Bureau <page identifier="/us/stat/111/737">111 STAT. 737</page>of Prisons shall begin the transferring of inmates to Bureau of Prison or private contract facilities required by this section.</content> </subsection> </section> <section> <num value="11202">SEC. 11202.</num> <heading>CORRECTIONS TRUSTEE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Appointment and Removal of Trustee</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Appointment</inline>.—</heading><content>Pursuant to the Federal Government’s assumption of responsibility for persons convicted of a felony offense under the District of Columbia Code, the Attorney General, in consultation with the Chairman of the District of Columbia Financial Responsibility and Management Assistance Authority (hereafter in this chapter referred to as the “D.C. Control Board”), the Mayor of the District of Columbia, the District of Columbia Council, and the District of Columbia judiciary, shall select a Corrections Trustee, who shall be an independent officer of the government of the District of Columbia, to oversee financial operations of the District of Columbia Department of Corrections until the Bureau of Prisons has designated all felony offenders sentenced under the District of Columbia Code to a penal or correctional facility operated or contracted for by the Bureau of Prisons under section 11201.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Removal</inline>.—</heading><content>The Corrections Trustee may be removed by the Mayor with the concurrence of the Attorney General. The Attorney General shall have the authority to remove the Corrections Trustee for misfeasance or malfeasance in office. At the request of the Corrections Trustee, the District of Columbia Financial Responsibility and Management Assistance Authority may exercise any of its powers and authorities on behalf of the Corrections Trustee.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Duties of Trustee</inline>.—</heading><chapeau>Beginning on the date of appointment and continuing until the felony population sentenced pursuant to the District of Columbia Code residing at the Lorton Correctional Complex is transferred to a penal or correctional facility operated or contracted for by the Bureau of Prisons, the Corrections Trustee shall carry out the following responsibilities (notwithstanding any law of the District of Columbia to the contrary):</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Exercise financial oversight over the District of Columbia Department of Corrections and allocate funds as enacted in law or as otherwise allocated, including funds for short term improvements which are necessary for the safety and security of staff, inmates and the community.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Purchase any necessary goods or services on behalf of the District of Columbia Department of Corrections consistent with Federal procurement regulations as they apply to the Bureau of Prisons.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Funding</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Funds available for the Corrections Trustee, staff and all necessary and appropriate operations shall be made available to the extent provided in appropriations acts to the Corrections Trustee. Funding requests shall be proposed by the Corrections Trustee to the President and Congress for each Fiscal Year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Reimbursement to bureau of prisons</inline>.—</heading><content>Upon receipt of Federal funds, the Corrections Trustee shall immediately provide an advance reimbursement to the Bureau of Prisons of all funds identified by the Congress for construction of new prisons and major renovations, which shall remain available until expended. The Bureau of Prisons shall be responsible <page identifier="/us/stat/111/738">111 STAT. 738</page>and accountable for determining how these funds shall be used for renovation and construction, including type, security level, and location of new facilities.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Accountability and reports</inline>.—</heading><content>The District of Columbia Department of Corrections and the Bureau of Prisons shall maintain accountability for funds reimbursed from the Corrections Trustee, and shall provide expense reports by project at the request of the Corrections Trustee.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Compensation and Detailees</inline>.—</heading><content>The Corrections Trustee shall be compensated at a rate not to exceed the basic pay payable for Level IV of the Executive Schedule. The Corrections Trustee may appoint and fix the pay of additional staff without regard to the provisions of the District of Columbia Code governing appointments and salaries, without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, and without regard to the provisions of chapter 51 and subchapter III of chapter 53 of title 5, United States Code, relating to classification and General Schedule pay rates. Upon request of the Corrections Trustee, the head of any Federal department or agency may, on a reimbursable or non reimbursable basis, provide services and detail any personnel of that department or agency to the Corrections Trustee to assist in carrying out his duties.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Procurement and Judicial Review</inline>.—</heading><content>The provisions of the District of Columbia Code governing procurement shall not apply to the Corrections Trustee. The Corrections Trustee may seek judicial enforcement of his authority to carry out his duties.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Preservation of Retirement and Certain Other Rights of Federal Employees Who Become Employed by the Corrections Trustee</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>A Federal employee who, within 3 days after separating from the Federal Government, is appointed Corrections Trustee or becomes employed by the Corrections Trustee—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>shall be treated as an employee of the Federal Government for purposes of chapters 83, 84, 87, and 89 of title 5 of the United States Code; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>if, after serving with the Trustee, such employee becomes reemployed by the Federal Government, shall be entitled to credit for the full period of such individual’s service with the Trustee, for purposes of determining the applicable leave accrual rate.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Regulations</inline>.—</heading><content>The Office of Personnel Management shall prescribe such regulations as may be necessary to carry out this subsection.</content></paragraph> </subsection> </section> <section> <num value="11203">SEC. 11203.</num> <heading>PRIORITY CONSIDERATION FOR EMPLOYEES OF THE DISTRICT OF COLUMBIA.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Establishment</inline>.—</heading><content>As soon as practicable after appointment, the Bureau of Prisons, working with the Corrections Trustee, shall establish a priority consideration program to facilitate employment placement for employees of the District of Columbia Department of Corrections who are scheduled to be separated from service as a result of closing the Lorton Correctional Complex.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Provisions</inline>.—</heading><content>The priority consideration program shall include provisions under which a vacant federal correctional institution position established as a result of this Act and identified for external hiring shall not be filled by the appointment of any <page identifier="/us/stat/111/739">111 STAT. 739</page>individual from outside of the District of Columbia Department of Corrections if there is available any interested applicant within the District of Columbia Department of Corrections who meets all qualification and suitability requirements for Bureau of Prisons law enforcement positions, including those related to criminal history, educational experience and level of functions, drug use, and work-related misconduct. The priority consideration program shall also include provisions under which an employee described in subsection (a) who does not meet the qualification and suitability requirements for Bureau of Prisons law enforcement positions shall receive priority consideration for other Federal positions, and any such employee who is found to be well qualified for such a position may be appointed without regard to the provisions of title 5, United States Code, governing appointments in the competitive service. Such program shall terminate one year after the closing of the<sidenote><p class="indent0 firstIndent0 fontsize8">Termination date.</p></sidenote> Lorton Correctional Complex.</content> </subsection> </section> <section> <num value="11204">SEC. 11204.</num> <heading>AMENDMENTS RELATED TO PERSONS WITH A MENTAL DISEASE OR DEFECT.</heading> <chapeau>Title 18, United States Code, is amended as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>Section 4246 is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in subsection (a) by inserting “<quotedText>in the custody of the Bureau of Prisons</quotedText>” after “certifies that a person”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Definition</inline>.—</heading><content>As used in this chapter the term “State” includes the District of Columbia.”.</content> </subsection> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>Section 4247(a) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in paragraph (1)(D) by striking “<quotedText>and</quotedText>” after the semicolon;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in paragraph (2) by striking the period and inserting “<quotedText>; and</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>‘State’ includes the District of Columbia.”.</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Section 4247(j) of title 18, United States Code, is amended by striking “<quotedText>This chapter does</quotedText>” and inserting “<quotedText>Sections 4241, 4242, 4243, and 4244 do</quotedText>”.</content></paragraph> </section> <section> <num value="11205">SEC. 11205.</num> <heading>LIABILITY FOR AND LITIGATION AUTHORITY OF CORRECTIONS TRUSTEE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Liability</inline>.—</heading><chapeau>The District of Columbia shall defend any civil action or proceeding brought in any court or other official Federal, state, or municipal forum against the Corrections Trustee, or against the District of Columbia or it officers, employees, or agents, and shall assume any liability resulting from such an action or proceeding, if the action or proceeding arises from—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>an inmate’s confinement with the District of Columbia Department of Corrections;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>the District of Columbia’s operation or management of the buildings, facilities, or lands comprising the Lorton property; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>the District of Columbia’s operations or activities occurring on any property not specifically transferred to the administrative control of the Federal Government pursuant to this Act.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Litigation</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Corporation counsel</inline>.—</heading><content>Subject to paragraph (2), the Corporation Counsel of the District of Columbia shall provide litigation services to the Corrections Trustee, except that the <page identifier="/us/stat/111/740">111 STAT. 740</page>Trustee may instead elect, either generally or in relation to particular cases or classes of cases, to hire necessary staff and personnel or enter into contracts for the provision of litigation services at the Trustee’s expense.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Attorney general</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Notwithstanding paragraph (1), with respect to any litigation involving the Corrections Trustee, the Attorney General may—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>direct the litigation of the Trustee, and of the District of Columbia on behalf of the Trustee; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>provide on a reimbursable or non-reimbursable basis litigation services for the Trustee at the Trustee’s request or on the Attorney General’s own initiative.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Approval of settlement</inline>.—</heading><content>With respect to any litigation involving the Corrections Trustee, the Trustee may not agree to any settlement involving any form of equitable relief without the approval of the Attorney General.<sidenote><p class="indent0 firstIndent0 fontsize8">Notices.</p><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> The Trustee shall provide to the Attorney General such notice and reports concerning litigation as the Attorney General may direct.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <heading><inline class="smallCaps">Discretion</inline>.—</heading><content>Any decision to exercise any authority of the Attorney General under this subsection shall be in the sole discretion of the Attorney General and shall not be reviewable in any court.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Limitations</inline>.—</heading><chapeau>Nothing in this section shall be construed—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>as a waiver of sovereign immunity, or as limiting any other defense or immunity that would otherwise be available to the United States, the District of Columbia, their agencies, officers, employees, or agents; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>to obligate the District of Columbia to represent or indemnify the Corrections Trustee or any officer, employee, or agent where the Trustee (or any person employed by or acting under the authority of the Trustee) acts beyond the scope of his authority.</content></paragraph> </subsection> </section> <section> <num value="11206">SEC. 11206.</num> <heading>PERMITTING EXPENDITURE OF FUNDS TO CARRY OUT CERTAIN SEWER AGREEMENT.</heading> <content>Notwithstanding the fourth sentence of section 446 of the District of Columbia Self-Government and Governmental Reorganization Act, the District of Columbia is authorized to obligate or expend such funds as may be necessary during a fiscal year (beginning with fiscal year 1997) to carry out the Sewage Delivery System and Capacity Purchase Agreement between Fairfax County and the District of Columbia with respect to Project Number K00301, without regard to the amount appropriated for such purpose in the budget of the District of Columbia for the fiscal year.</content> </section> </chapter> <chapter> <num value="2">CHAPTER 2—</num><heading>SENTENCING</heading> <section> <num value="11211">SEC. 11211.</num> <heading>TRUTH IN SENTENCING COMMISSION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Establishment</inline>.—</heading><content>There is established as an independent agency of the District of Columbia a District of Columbia Truth in Sentencing Commission (hereafter in this chapter referred to as “the Commission”), which shall consist of 7 voting members. The Attorney General, or the Attorney General’s designee, shall be the chairperson of the Commission and shall have the duty to convene meetings of the Commission to ensure that it fulfills <page identifier="/us/stat/111/741">111 STAT. 741</page>its responsibilities under this Act. The members shall serve for the life of the Commission and shall be subject to removal only for neglect of duty, malfeasance in office, or other good cause shown.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Membership</inline>.—</heading><content>The members of the Commission shall have knowledge and responsibility with respect to criminal justice matters. Two members of the Commission shall be judges of the Superior Court of the District of Columbia, and shall be appointed by the chief judge of that court; one member shall be a representative of the District of Columbia Council and shall be appointed by the chairperson or chairperson pro temp of the Council; one member shall be a representative of the executive branch of the District of Columbia government with official responsibilities for criminal justice matters in the District of Columbia and shall be appointed by the Mayor of the District of Columbia; one member shall be a representative of the District of Columbia Public Defender Service and shall be appointed by the Director of such Service; and one member shall be a representative of the United States Attorney for the District of Columbia and shall be appointed by the United States Attorney. A representative of the Federal Bureau of Prisons and a representative of the office of Corporation Counsel of the District of Columbia shall each serve as a non-voting, ex officio member.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Vacancy</inline>.—</heading><content>Any vacancy in the Commission shall be filled in the same manner as the original appointment. Members of the Commission shall receive no compensation for their services, but shall be reimbursed for travel, subsistence, and other necessary expenses incurred in the performance of duties vested in the Commission, but not in excess of the maximum amounts authorized under section 456 of title 28, United States Code.</content> </subsection> </section> <section> <num value="11212">SEC. 11212.</num> <heading>GENERAL DUTIES, POWERS, AND GOALS OF COMMISSION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Recommendations</inline>.—</heading><content>The Commission shall, within 180 days after the enactment of this Act, make recommendations to the District of Columbia Council for amendments to the District of Columbia Code with respect to the sentences to be imposed for all felonies committed on or after 3 years after the date of enactment of this Act.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Contents of Recommendations</inline>.—</heading><chapeau>Such recommendations shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>as to all felonies described in paragraph (h), meet the truth in sentencing standards of 20104(a)(1) of the Violent Crime Control and Law Enforcement Act of 1994;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>as to all felonies ensure that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <chapeau>an offender will have a sentence imposed that—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>reflects the seriousness of the offense and the criminal history of the offender; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>provides for just punishment, affords adequate deterrence to potential future criminal conduct of the offender and others, and provides the offender with needed educational or vocational training, medical care, and other correctional treatment;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>good time shall be calculated pursuant to section 3624 of title 18, United States Code; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>an adequate period of supervision will be imposed to follow release from the imprisonment.<page identifier="/us/stat/111/742">111 STAT. 742</page></content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Death Penalty</inline>.—</heading><content>The Commission shall not have the power to recommend a sentence of death for any offense nor for any offense a term of imprisonment less than that prescribed by the D.C. Code as a mandatory minimum sentence.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Other Features of Recommendations</inline>.—</heading><chapeau>The Commission shall ensure that its recommendations—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>will be neutral as to the race, sex, marital status, ethnic origin, religious affiliation, national origin, creed, socioeconomic status, and sexual orientation of offenders;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>will include provisions designed to maximize the effectiveness of the drug court of the Superior Court of the District of Columbia; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>will be fully consistent with all other provisions of this Act, including provisions relating to the administration of probation, parole, and supervised release for District of Columbia Code offenders.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Vote; Termination</inline>.—</heading><content>The recommendations of the Commission required under subsections (a)–(d) shall be adopted by a vote of not less than 6 of the members and when made shall be transmitted forthwith to the District of Columbia Council The Commission shall cease to exist 90 days after the transmittal of recommendations to the Council or on the last date on which timely recommendations may be made if the Commission is unable to agree on such recommendations.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Recommendations for Implementation</inline>.—</heading><chapeau>In fulfilling its responsibilities, the Commission may adopt by a vote of not less than 6 of the members and transmit to the Superior Court of the District of Columbia recommended rules and principles for determining the sentence to be imposed, including—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>whether to impose a sentence of probation, a term of imprisonment and/or a fine, and the amount or length thereof, and including intermediate sanctions in appropriate cases; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>whether multiple sentences of terms of imprisonment should run concurrently or consecutively.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g)</num> <heading><inline class="smallCaps">Powers</inline>.—</heading><chapeau>The Commission is authorized—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>to hold hearings and call witnesses that might assist the Commission in the exercise of its powers;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>to perform such other functions as may be necessary to carry out the purposes of this section; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>except as otherwise provided, to conduct business, exercise powers, and fulfill duties by the vote of a majority of the members present at any meeting.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h)</num> <heading><inline class="smallCaps">Felonies Described</inline>.—</heading><chapeau>The felonies described in this subsection are violations of any of the following provisions of law:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>The following provisions relating to arson:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Section 820 of the Act entitled “An Act to establish a code of law for the District of Columbia,” approved March 3, 1901 (DC Code, sec. 22–401).<page identifier="/us/stat/111/743">111 STAT. 743</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Section 821 of the Act entitled “An Act to establish a code of law for the District of Columbia,” approved March 3, 1901 (DC Code, sec. 22–402).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>The following provisions relating to felony assault:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Section 803 of the Act entitled “An Act to establish a code of law for the District of Columbia,” approved March 3, 1901 (DC Code, sec. 22–501).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Section 804 of the Act entitled “An Act to establish a code of law for the District of Columbia,” approved March 3, 1901 (DC Code, sec. 22–502).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>Section 805 of the Act entitled “An Act to establish a code of law for the District of Columbia,” approved March 3, 1901 (DC Code, sec. 22–503).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>Section 806a of the Act entitled “An Act to establish a code of law for the District of Columbia,” approved March 3, 1901 (DC Code, sec. 22–504.1).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>Section 432 of the Revised Statutes, relating to the District of Columbia (DC Code, sec. 22–505).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F)</num> <content>Section 807 of the Act entitled “An Act to establish a code of law for the District of Columbia,” approved March 3, 1901 (DC Code, sec. 22–506).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Section 502 of the District of Columbia Theft and White Collar Crimes Act of 1982 (DC Code, sec. 22–722) (relating to obstruction of justice).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>Section 3 of the Act of February 13, 1885 (chapter 58; 23 Stat. 303) (DC Code, sec. 22–901) (relating to cruelty to children).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>Section 823 of the Act entitled “An Act to establish a code of law for the District of Columbia,” approved March 3, 1901 (DC Code, sec. 22–1801) (relating to first degree burglary).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>Section 812 of the Act entitled “An Act to establish a code of law for the District of Columbia,” approved March 3, 1901 (DC Code, sec. 22–2101) (relating to kidnapping).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <chapeau>The following provisions relating to murder and manslaughter:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Section 798 of the Act entitled “An Act to establish a code of law for the District of Columbia,” approved March 3, 1901 (DC Code, sec. 22–2401).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Section 799 of the Act entitled “An Act to establish a code of law for the District of Columbia,” approved March 3, 1901 (DC Code, sec. 22–2402).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>Section 800 of the Act entitled “An Act to establish a code of law for the District of Columbia,” approved March 3, 1901 (DC Code, sec. 22–2403).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>Section 801 of the Act entitled “An Act to establish a code of law for the District of Columbia,” approved March 3, 1901 (DC Code, sec. 22–2404).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>Section 802 of the Act entitled “An Act to establish a code of law for the District of Columbia,” approved March 3, 1901 (DC Code, sec. 22–2405).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F)</num> <content>Section 802a of the Act entitled “An Act to establish a code of law for the District of Columbia,” approved March 3, 1901 (DC Code, sec. 22–2406).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8)</num> <content>Section 8 of the Act of July 15, 1932 (chapter 492; 47 Stat. 698) (DC Code, sec. 22–2601) (relating to prison breach).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9)</num> <content>The Act entitled “An Act to prohibit the introduction of contraband into the District of Columbia penal institutions,” approved December 15, 1941 (DC Code, sec. 22–2603).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10)</num> <content>Section 810 of the Act entitled “An Act to establish a code of law for the District of Columbia,” approved March 3, 1901 (DC Code, sec. 22–2901) (relating to robbery).<page identifier="/us/stat/111/744">111 STAT. 744</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="11">(11)</num> <content>Section 811a of the Act entitled “An Act to establish a code of law for the District of Columbia,” approved March 3, 1901 (DC Code, sec. 22–2903) (relating to carjacking).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="12">(12)</num> <content>The Dangerous Weapons Act (DC Code, sec. 22–3201 et seq.).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="13">(13)</num> <chapeau>The following provisions relating to sex offenses:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Section 201 of the Anti-Sexual Abuse Act of 1994 (DC Code, sec. 22–4102).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Section 202 of the Anti-Sexual Abuse Act of 1994 (DC Code, sec. 22–4103).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>Section 203 of the Anti-Sexual Abuse Act of 1994 (DC Code, sec. 22–4104).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>Section 204 of the Anti-Sexual Abuse Act of 1994 (DC Code, sec. 22–4105).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>Section 207 of the Anti-Sexual Abuse Act of 1994 (DC Code, sec. 22–4108).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F)</num> <content>Section 208 of the Anti-Sexual Abuse Act of 1994 (DC Code, sec. 22–4109).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">(G)</num> <content>Section 209 of the Anti-Sexual Abuse Act of 1994 (DC Code, sec. 22–4110).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">(H)</num> <content>Section 212 of the Anti-Sexual Abuse Act of 1994 (DC Code, sec. 22–4113).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="I">(I)</num> <content>Section 213 of the Anti-Sexual Abuse Act of 1994 (DC Code, sec. 22–4114).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="J">(J)</num> <content>Section 214 of the Anti-Sexual Abuse Act of 1994 (DC Code, sec. 22–4115).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="K">(K)</num> <content>Section 215 of the Anti-Sexual Abuse Act of 1994 (DC Code, sec. 22–4116).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="L">(L)</num> <content>Section 217 of the Anti-Sexual Abuse Act of 1994 (DC Code, sec. 22–4118).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="M">(M)</num> <content>Section 219 of the Anti-Sexual Abuse Act of 1994 (DC Code, sec. 22–1120).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="14">(14)</num> <content>Section 401 of the District of Columbia Uniform Controlled Substances Act of 1981 (D.C. Code, sec. 33–541) (relating to recidivist drug offenders), but only in the case of a second or subsequent violation.</content></paragraph> </subsection> </section> <section> <num value="11213">SEC. 11213.</num> <heading>DATA COLLECTION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Data for Attorney General</inline>.—</heading><content>The Commission, the Superior Court of the District of Columbia, the District of Columbia Department of Corrections, and other agencies as necessary shall provide to the Attorney General such data as are requested in furtherance of this Act.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Superior Court</inline>.—</heading><content>The Superior Court of the District of Columbia, in connection with defendants sentenced in such Court, shall provide to the Commission and the Attorney General such data as are requested for planning, statistical analysis or projecting future prison population levels.</content> </subsection> </section> <section> <num value="11214">SEC. 11214.</num> <heading>ENACTMENT OF AMENDMENTS TO DISTRICT OF COLUMBIA CODE.</heading> <content>If, within 270 days after the date of the enactment of this Act, the Council of the District of Columbia has failed to amend the District of Columbia Code to enact in whole the recommendations of the Commission under this chapter, or if the Commission fails to make such recommendations within the deadline established under such section, the Attorney General (after consultation with the Commission) shall promulgate within 90 days amendments <page identifier="/us/stat/111/745">111 STAT. 745</page>to the District of Columbia Code with respect to the sentences to be imposed for all offenses committed on or after 3 years after the date of the enactment of this Act. Such amendments shall be consistent with the standards of subsections (a) through (d) of section 11212. Such amendments shall take effect 30 days after<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> the Attorney General transmits the recommendations to Congress.</content> </section> </chapter> <chapter> <num value="3">CHAPTER 3—</num><heading>OFFENDER SUPERVISION AND PAROLE</heading> <section> <num value="11231">SEC. 11231.</num> <heading>PAROLE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Paroling Jurisdiction</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Jurisdiction of parole commission to grant or deny parole and to impose conditions</inline>.—</heading><content>Not later than one year after date of the enactment of this Act, the United States Parole Commission shall assume the jurisdiction and authority of the Board of Parole of the District of Columbia to grant and deny parole, and to impose conditions upon an order of parole, in the case of any imprisoned felon who is eligible for parole or reparole under the District of Columbia Code. The Parole Commission shall have exclusive authority to amend or supplement any regulation interpreting or implementing the parole laws of the District of Columbia with respect to felons, provided that the Commission adheres to the rulemaking procedures set forth in section 4218 of title 18, United States Code.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Jurisdiction of parole commission to revoke parole or modify conditions</inline>.—</heading><content>On the date in which the District of Columbia Offender Supervision, Defender, and Courts Services Agency is established under section 11233, the United States Parole Commission shall assume any remaining powers, duties, and jurisdiction of the Board of Parole of the District of Columbia, including jurisdiction to revoke parole and to modify the conditions of parole, with respect to felons.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Jurisdiction of superior court</inline>.—</heading><content>On the date on which the District of Columbia Offender Supervision, Defender, and Courts Services Agency is established under section 11233, the Superior Court of the District of Columbia shall assume the jurisdiction and authority of the Board of Parole of the District of Columbia to grant, deny, and revoke parole, and to impose and modify conditions of parole, with respect to misdemeanants.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Abolition of the Board of Parole</inline>.—</heading><content>On the date on which the District of Columbia Offender Supervision, Defender, and Courts Services Agency is established under section 11233, the Board of Parole established in the District of Columbia Board of Parole Amendment Act of 1987 shall be abolished.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Rulemaking and Legislative Responsibility for Parole Matters</inline>.—</heading><content>The Parole Commission shall exercise the authority vested in it by this section pursuant to the parole laws and regulations of the District of Columbia, except that the Council of the District of Columbia and the Board of Parole of the District of Columbia may not revise any such laws or regulations (as in effect on the date of the enactment of this Act) without the concurrence of the Attorney General.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Increase in the Authorized Number of United States Parole Commissioners</inline>.—</heading><content>Section 2(c) of the Parole Commission <page identifier="/us/stat/111/746">111 STAT. 746</page><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t18/s4201">18 USC 4201 note</ref>.</p></sidenote>Phaseout Act of 1996 (Public Law 104–232) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <content>The United States Parole Commission shall have no more than five members.”.</content> </subsection> </quotedContent> </content></subsection> </section> <section> <num value="11232">SEC. 11232.</num> <heading>PRETRIAL SERVICES, DEFENSE SERVICES, PAROLE, ADULT PROBATION AND OFFENDER SUPERVISION TRUSTEE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Appointment and Removal</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Appointment</inline>.—</heading><content>The Attorney General, in consultation with the Chairman of the District of Columbia Financial Responsibility and Management Assistance Authority (hereafter in this section referred to as the “D.C. Control Board”) and the Mayor of the District of Columbia, shall appoint a Pretrial Services, Defense Services, Parole, Adult Probation and Offender Supervision Trustee, who shall be an independent officer of the government of the District of Columbia, to effectuate the reorganization and transition of functions and funding relating to pretrial services, defense services, parole, adult probation and offender supervision.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Removal</inline>.—</heading><content>The Trustee may be removed by the Mayor with the concurrence of the Attorney General. The Attorney General shall have the authority to remove the Trustee for misfeasance or malfeasance in office. At the request of the Trustee, the District of Columbia Financial Responsibility and Management Assistance Authority may exercise any of its powers and authorities on behalf of the Trustee.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Authority</inline>.—</heading><chapeau>Beginning on the date of appointment, and continuing until the District of Columbia Offender Supervision, Defender, and Courts Services Agency is established under section 11233, the Trustee shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>have the authority to exercise all powers and functions authorized for the Director of the District of Columbia Offender Supervision, Defender and Courts Services Agency;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>have the authority to direct the actions of all agencies of the District of Columbia whose functions will be assumed by or within the District of Columbia Offender Supervision, Defender and Courts Services Agency, and of the Board of Parole of the District of Columbia, including the authority to discharge or replace any officers or employees of these agencies, except that the Trustee may not direct the conduct of particular cases by the District of Columbia Public Defender Service;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>exercise financial oversight over all agencies of the District of Columbia whose functions will be assumed by or within the District of Columbia Offender Supervision, Defender and Courts Services Agency, and over the Board of Parole of the District of Columbia, and allocate funds to these agencies as appropriated by Congress and allocated by the President;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>receive and transmit to the District of Columbia Pretrial Services Agency all funds appropriated for such agency; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>receive and transmit to the District of Columbia Public Defender Service all funds appropriated for such agency.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Compensation</inline>.—</heading><content>The Trustee shall be compensated at a rate not to exceed the basic pay payable for Level IV of the Executive Schedule. The Trustee may appoint and fix the pay of additional staff without regard to the provisions of the District of Columbia Code governing appointments and salaries, without regard to the <page identifier="/us/stat/111/747">111 STAT. 747</page>provisions of title 5, United States Code, governing appointments in the competitive service, and without regard to the provisions of chapter 51 and subchapter III of Chapter 53 of title 5, United States Code, relating to classification and General Schedule pay rates. Upon request of the Trustee, the head of any Federal department or agency may, on a reimbursable or non-reimbursable basis, provide services and/or detail any personnel of that department or agency to the Trusteeship to assist in carrying out its duties.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Procurement and Judicial Review</inline>.—</heading><content>The provisions of the District of Columbia Code governing procurement shall not apply to the Trustee. The Trustee may enter into such contracts as the Trustee considers appropriate to carry out the Trustee’s duties. The Trustee may seek judicial enforcement of the Trustee’s authority to carry out the Trustee’s duties.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Preservation of Retirement and Certain Other Rights of Federal Employee Who Becomes the Trustee or Federal Employees Who Become Employed by the Trustee</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>A Federal employee who, within 3 days after separating from the Federal Government, is appointed Trustee or becomes employed by the Trustee—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>shall be treated as an employee of the Federal Government for purposes of chapters 83, 84, 87, and 89 of title 5 of the United States Code; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>if, after serving with the Trustee, such employee becomes reemployed by the Federal Government, shall be entitled to credit for the full period of such individual’s service with the Trustee, for purposes of determining the applicable leave accrual rate.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Regulations</inline>.—</heading><content>The Office of Personnel Management shall prescribe such regulations as may be necessary to carry out this subsection.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Funding</inline>.—</heading><content>Funds available for operations of the Trustee shall be made available to the extent provided in appropriations acts to the Trustee, through the State Justice Institute. Funding requests shall be proposed by the Trustee to the President and Congress for each Fiscal Year.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g)</num> <heading><inline class="smallCaps">Liability and Litigation Authority</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Liability</inline>.—</heading><chapeau>The District of Columbia shall defend any civil action or proceeding brought in any court or other official Federal, state, or municipal forum against the Trustee, or against the District of Columbia or its officers, employees, or agents, and shall assume any liability resulting from such an action or proceeding, if the action or proceeding arises from the—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>supervision of offenders on probation, parole, or supervised release;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>provision of pretrial services by the District of Columbia; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>activities of the District of Columbia Board of Parole.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Litigation</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">Corporation counsel</inline>.—</heading><content>Subject to subparagraph (B), the Corporation Counsel of the District of Columbia shall provide litigation services to the Trustee, except that the Trustee may instead elect, either generally or in relation to particular cases or classes of cases, to hire necessary <page identifier="/us/stat/111/748">111 STAT. 748</page>staff and personnel or enter into contracts for the provision of litigation services at the Trustee’s expense.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Attorney general</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Notwithstanding subparagraph (A), with respect to any litigation involving the Trustee, the Attorney General may—</chapeau> <subclause class="indent4 fontsize10"><num value="I">(I)</num> <content>direct the litigation of the Trustee, and of the District of Columbia on behalf of the Trustee; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">(II)</num> <content>provide on a reimbursable or non-reimbursable basis litigation services for the Trustee at the Trustee’s request or on the Attorney General’s own initiative.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <heading><inline class="smallCaps">Approval of settlement</inline>.—</heading><content>With respect to any litigation involving the Trustee, the Trustee may not agree to any settlement involving any form of equitable relief without the approval of the Attorney General. The Trustee shall provide to the Attorney General such notice and reports concerning litigation as the Attorney General may direct.</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <heading><inline class="smallCaps">Discretion</inline>.—</heading><content>Any decision to exercise any authority of the Attorney General under this paragraph shall be in the sole discretion of the Attorney General and shall not be reviewable in any court.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Limitations</inline>.—</heading><chapeau>Nothing in this section shall be construed—</chapeau></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>as a waiver of sovereign immunity, or as limiting any other defense or immunity that would otherwise be available to the United States, the District of Columbia, their agencies, officers, employees, or agents; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>to obligate the District of Columbia to represent or indemnify the Corrections Trustee or any officer, employee, or agent where the Trustee (or any person employed by or acting under the authority of the Trustee) acts beyond the scope of his authority.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8">Termination date.</p></sidenote> <heading><inline class="smallCaps">Certification</inline>.—</heading><content>The District of Columbia Offender Supervision, Defender, and Courts Services Agency shall assume its duties pursuant to section 11233 when, within the period beginning one year after the date of the enactment of this subtitle and ending three years after the date of the enactment of this subtitle, the Trustee certifies to the Attorney General and the Attorney General concurs that the Agency can carry out the functions described in section 11233 and the United States Parole Commission can carry out the functions described in section 11231.</content> </subsection> </section> <section> <num value="11233">SEC. 11233.</num> <heading>OFFENDER SUPERVISION, DEFENDER AND COURTS SERVICES AGENCY.</heading> <subparagraph class="indent2 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Establishment</inline>.—</heading><content>There is established within the executive branch of the Federal Government the District of Columbia Offender Supervision, Defender, and Courts Services Agency (hereafter in this section referred to as the “Agency”) which shall assumes its duties not less than one year or more than three years after the enactment of this Act.</content> </subparagraph> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Director</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num><sidenote><p class="indent0 firstIndent0 fontsize8">President.</p></sidenote> <heading><inline class="smallCaps">Appointment and compensation</inline>.—</heading><content>The Agency shall be headed by a Director appointed by the President, by and with the advice and consent of the Senate, for a term of six <page identifier="/us/stat/111/749">111 STAT. 749</page>years. The Director shall be compensated at the rate prescribed for Level IV of the Executive Schedule, and may be removed from office prior to the expiration of term only for neglect of duty, malfeasance in office, or other good cause shown.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Powers and duties of director</inline>.—</heading><chapeau>The Director shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>submit annual appropriation requests for the Agency to the Office of Management and Budget;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>determine, in consultation with the Chief Judge of the United States District Court for the District of Columbia, the Chief Judge of the Superior Court of the District of Columbia, and the Chairman of the United States Parole Commission, uniform supervision and reporting practices for the Agency;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>hire and supervise supervision officers and support staff for the Agency;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>direct the use of funds made available to the Agency;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>enter into such contracts, leases, and cooperative agreements as may be necessary for the performance of the Agency’s functions, including contracts for substance abuse and other treatment and rehabilitative programs;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F)</num> <content>develop and operate intermediate sanctions programs for sentenced offenders; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">(G)</num> <content>arrange for the supervision of District of Columbia paroled offenders in jurisdictions outside the District of Columbia.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Functions</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Agency shall provide supervision, through qualified supervision officers, for offenders on probation, parole, and supervised release pursuant to the District of Columbia Code. The Agency shall carry out its responsibilities on behalf of the court or agency having jurisdiction over the offender being supervised.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Supervision of released offenders</inline>.—</heading><chapeau>The Agency shall supervise any offender who is released from imprisonment for any term of supervised release imposed by the Superior Court of the District of Columbia. Such offender shall be subject to the authority of the United States Parole Commission until completion of the term of supervised release. The United States Parole Commission shall have and exercise the same authority as is vested in the United States district courts by paragraphs (d) through (i) of section 3583 of title 18, United States Code, except that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>the procedures followed by the Commission in exercising such authority shall be those set forth in chapter 311 of title 18, United States Code; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>an extension of a term of supervised release under subsection (e)(2) of section 3583 may only be ordered by the Superior Court upon motion from the Commission.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Supervision of probationers</inline>.—</heading><content>Subject to appropriations and program availability, the Agency shall supervise all offenders placed on probation by the Superior Court of the District of Columbia. The Agency shall carry out the conditions<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> of release imposed by the Superior Court (including conditions that probationers undergo training, education, therapy, counseling, drug testing, or drug treatment), and shall make such <page identifier="/us/stat/111/750">111 STAT. 750</page>reports to the Superior Court with respect to an individual on probation as the Superior Court may require.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> <heading><inline class="smallCaps">Supervision of district of columbia parolees</inline>.—</heading><content>The Agency shall supervise all individuals on parole pursuant to the District of Columbia Code. The Agency shall carry out the conditions of release imposed by the United States Parole Commission or, with respect to a misdemeanant, by the Superior Court of the District of Columbia, and shall make such reports to the Commission or Court with respect to an individual on parole supervision as the Commission or Court may require.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Authority of Officers</inline>.—</heading><content>The supervision officers of the Agency shall have and exercise the same powers and authority as are granted by law to United States Probation and Pretrial Officers.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Pretrial Services Agency and Public Defender Service</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Independent entities</inline>.—</heading><content>The District of Columbia Pretrial Services Agency established by subchapter I of chapter 13 title 23, District of Columbia Code, and the District of Columbia Public Defender Service established by title III of the District of Columbia Court Reform and Criminal Procedure Act of 1970 (D.C. Code, sec. 1–2701 et seq.) shall function as independent entities within the Agency.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Submission on behalf of pretrial services</inline>.—</heading><content>The Director of the Agency shall submit, on behalf of the District of Columbia Pretrial Services Agency and with the approval of the Director of the Pretrial Services Agency, an annual appropriation request to the Office of Management and Budget. Such request shall be separate from the request submitted for the Agency.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Submission on behalf of public defender service</inline>.—</heading><content>The Director of the Agency shall submit, on behalf of the District of Columbia Public Defender Service and with the approval of the Director of the Public Defender Service, an annual appropriation request to the Office of Management and Budget. Such request shall be separate from that submitted for the Agency.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Liability of district of columbia</inline>.—</heading><content>The District of Columbia shall defend any civil action or proceeding brought in any court or other official Federal, state, or municipal forum against the District of Columbia Pretrial Services Agency, the District of Columbia Public Defender Service, or the District of Columbia or its officers, employees, or agents, and shall assume any liability resulting from such an action or proceeding, if the action or proceeding arises from the activities of the District of Columbia Pretrial Services Agency or the District of Columbia Public Defender Service prior to the date on which the Offender Supervision, Defender and Courts Services Agency assumes its duties.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <heading><inline class="smallCaps">Litigation</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">Corporation counsel</inline>.—</heading><content>Subject to subparagraph (B), the Corporation Counsel of the District of Columbia shall provide litigation services to the District of Columbia Pretrial Services Agency and the District of Columbia Public Defender Service, except that the District of Columbia <page identifier="/us/stat/111/751">111 STAT. 751</page>Pretrial Services Agency and the District of Columbia Public Defender Service may instead elect, either generally or in relation to particular cases or classes of cases, to hire necessary staff and personnel or enter into contracts for the provision of litigation services at such agency’s expense.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Attorney general</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Notwithstanding subparagraph (A), with respect to any litigation involving the District of Columbia Pretrial Services Agency, the Attorney General may—</chapeau> <subclause class="indent4 fontsize10"><num value="I">(I)</num> <content>direct the litigation of the agency, and of the District of Columbia on behalf of the agency; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">(II)</num> <content>provide on a reimbursable or nonreimbursable basis litigation services for the agency at the agency’s request or on the Attorney General’s own initiative.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <heading><inline class="smallCaps">Approval of settlement</inline>.—</heading><content>With respect to any litigation involving the District of Columbia Pretrial Services Agency, the agency may not agree to any settlement involving any form of equitable relief without the approval of the Attorney General. The<sidenote><p class="indent0 firstIndent0 fontsize8">Notices.</p><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> agency shall provide to the Attorney General such Reports, notice and reports concerning litigation as the Attorney General may direct.</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <heading><inline class="smallCaps">Discretion</inline>.—</heading><content>Any decision to exercise any authority of the Attorney General under this paragraph shall be in the sole discretion of the Attorney General and shall not be reviewable in any court.</content></clause> </subparagraph> </paragraph> </subsection> </section> <section> <num value="11234">SEC. 11234.</num> <heading>AUTHORIZATION OF APPROPRIATIONS.</heading> <chapeau>There are authorized to be appropriated through the State Justice Institute in each fiscal year such sums as may be necessary for the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>District of Columbia Pretrial Services Agency.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>District of Columbia Public Defender Service.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Supervision of offenders on probation, parole, or supervised release for offenses under the District of Columbia Code.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>Operation of the parole system for offenders convicted of offenses under the District of Columbia Code.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>Operation of the Trusteeship described in section 11232.</content></paragraph> </section> </chapter> <chapter> <num value="4">CHAPTER 4—</num><heading>DISTRICT OF COLUMBIA COURTS</heading> <subchapter> <num value="A">Subchapter A—</num><heading>Transfer of Administration and Financing of Courts to Federal Government</heading> <section> <num value="11241">SEC. 11241.</num> <heading>AUTHORIZATION OF APPROPRIATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Authorizations</inline>.—</heading><chapeau>There are authorized to be appropriated through the State Justice Institute in each fiscal year such sums as may be necessary for the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>The Superior Court of the District of Columbia.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>The District of Columbia Court of Appeals.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>The District of Columbia Court System.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Submission to OMB</inline>.—</heading><content>The Joint Committee on Judicial Administration in the District of Columbia shall include in its <page identifier="/us/stat/111/752">111 STAT. 752</page>submissions to the Office of Management and Budget and the Congress, the budget and appropriations requests of the Superior Court for the District of Columbia, the District of Columbia Court of Appeals, and the District of Columbia Court System.</content> </subsection> </section> <section> <num value="11242">SEC. 11242.</num> <heading>ADMINISTRATION OF COURTS UNDER DISTRICT OF COLUMBIA CODE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Submission of Annual Budget Requests by Joint Committee on Judicial Administration</inline>.—</heading><content>Section 11–1701(b)(4), District of Columbia Code, is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>Submission of the annual budget requests of the District of Columbia Court of Appeals, the Superior Court of the District of Columbia, and the District of Columbia Court System as the integrated budget of the District of Columbia courts, except that such requests may be modified upon the concurrence of four of the five members of the Joint Committee.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Audit of Accounts of Courts</inline>.—</heading><content>Section 11–1723(a)(3), District of Columbia Code, is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>The Fiscal Officer shall be responsible for the approval of vouchers and the internal auditing of the accounts of the courts and shall arrange for an annual independent audit of the accounts of the courts.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Appointment and Removal of Court Personnel</inline>.—</heading><content>Section 11–1725(b) of the District of Columbia Code is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <chapeau>The Executive Officer shall appoint, and may remove, the Director of Social Services, the clerks of the courts, the Auditor-Master, and all other nonjudicial personnel for the courts (other than the Register of Wills and personal law clerks and secretaries of the judges) as may be necessary, subject to—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>regulations approved by the Joint Committee; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the approval of the chief judge of the court to which the personnel are or will be assigned.</content></paragraph> <continuation class="indent0 fontsize10">Appointments and removals of court personnel shall not be subject to the laws, rules, and limitations applicable to District of Columbia employees.”.</continuation> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Procurement of Equipment and Supplies</inline>.—</heading><content>Section 11–1742(b), District of Columbia Code, is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <content>The Executive Officer shall be responsible for the procurement of necessary equipment, supplies, and services for the courts and shall have power, subject to applicable law, to reimburse the District of Columbia government for services provided and to contract for such equipment, supplies, and services as may be necessary.”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Budget and Expenditures</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 11–1743, District of Columbia Code, is amended to read as follows: <quotedContent> <section> <num value="11–1743">“§ 11–1743.</num> <heading>Annual Budget and Expenditures.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <content>The Joint Committee shall prepare and submit to the Mayor and the Council of the District of Columbia annual estimates of the expenditures and appropriations necessary for the maintenance and operations of the District of Columbia courts, and shall submit such estimates to Congress and the Director of the Office of Management and Budget sifter submitting them to the Mayor and the Council. All such estimates shall be included in the budget <page identifier="/us/stat/111/753">111 STAT. 753</page>without revision by the President but subject to the President’s recommendations.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <content>The District of Columbia Courts may make such expenditures as may be necessary to execute efficiently the functions vested in the Courts.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <content>All expenditures of the Courts shall be allowed and paid upon presentation of itemized vouchers signed by the certifying officer designated by the Joint Committee. All such expenditures shall be paid out of moneys appropriated for purposes of the Courts.”.</content> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Clerical amendment</inline>.—</heading><content>The item relating to section 11–1743 in the table of sections for subchapter III of chapter 17 of title 11, District of Columbia Code, is amended to read as follows: <quotedContent> <toc> <referenceItem role="section"><designator>“11–1743.</designator> <label>Annual budget and expenditures.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> </section> <section> <num value="11243">SEC. 11243.</num> <heading>BUDGETING AND FINANCING REQUIREMENTS FOR COURTS UNDER HOME RULE ACT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Budget of Courts</inline>.—</heading><content>Section 445 of the District of Columbia Self-Government and Governmental Reorganization Act (DC Code, Title 11 App.) is amended to read as follows: <quotedContent> <section> <num value="445">“<inline class="smallCaps">Sec</inline>. 445.</num> <content class="inline">The District of Columbia courts shall prepare and annually submit to the Director of the Office of Management and Budget, for inclusion in the annual budget, annual estimates of the expenditures and appropriations necessary for the maintenance and operation of the District of Columbia court system. The courts shall submit as part of their budgets both a multiyear plan and a multiyear capital improvements plan and shall submit a statement presenting qualitative and quantitative descriptions of court activities and the status of efforts to comply with reports of the Comptroller General of the United States.”.</content> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Financial Duties of the Mayor</inline>.—</heading><content>Section 448(a)(6) of such Act (DC Code, sec. 47–310(a)(6)) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>supervise and be responsible for the levying and collection of all taxes, special assessments, license fees, and other revenues of the District, as required by law, and receive all moneys receivable by the District from the Federal Government or from any agency or instrumentality of the District, except that this paragraph shall not apply to moneys from the District of Columbia Courts.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Funds of the District</inline>.—</heading><content>Section 450 of such Act (DC Code, sec. 47–130), is amended to read as follows: <quotedContent> <section> <num value="450">“SEC. 450.</num> <content class="inline">The General Fund of the District shall be composed of those District revenues which on the effective date of this title are paid into the Treasury of the United States and credited either to the General Fund of the District or its miscellaneous receipts, but shall not include any revenues which are applied by law to any special fund existing on the date of enactment of this title. The Council may from time to time establish such additional special funds as may be necessary for the efficient operation of the government of the District. All money received by any agency, officer, or employee of the District in its or his official capacity shall belong to the District government and shall be paid promptly to the Mayor for deposit in the appropriate fund, except that all money received by the District of Columbia Courts shall be deposited in the Treasury of the United States or the Crime Victims Fund.”.<page identifier="/us/stat/111/754">111 STAT. 754</page></content> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Reductions in Budgets of Independent Agencies</inline>.—</heading><content>Section 453(c) of such Act (DC Code, sec. 47–304.1(c)) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <content>Subsection (a) shall not apply to amounts appropriated or otherwise made available to the Council or to the District of Columbia Financial Responsibility and Management Assistance Authority established under section 101(a) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995.”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Treatment of Court Fees in Calculation of Limits on District Borrowing</inline>.—</heading><chapeau>Section 603 of such Act (DC Code, sec. 47–313) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in subsection (b)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <chapeau>in paragraph (1)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>in the first sentence, by striking “<quotedText>less court fees, any fees</quotedText>” and inserting “<quotedText>less any fees</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>in the second sentence, by striking “<quotedText>section 2501 , title 47 of the District of Columbia Code, as amended</quotedText>” and inserting “<quotedText>title VI of the District of Columbia Revenue Act of 1939</quotedText>”;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in paragraph (3)(A), by striking “<quotedText>less court fees, any fees</quotedText>” and inserting “<quotedText>less any fees</quotedText>”; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subsection (c), by striking the last sentence (relating to budget estimates of the District of Columbia courts).</content></paragraph> </subsection> </section> <section> <num value="11244">SEC. 11244.</num> <heading>AUDITING OF ACCOUNTS OF COURT SYSTEM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Powers of District of Columbia Auditor</inline>.—</heading><content>Section 455 of the District of Columbia Self-Government and Governmental Reorganization Act (DC Code, sec. 47–117) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <content>This section shall not apply to the District of Columbia Courts or the accounts and operations thereof.”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Submission of GAO Audit Reports to Mayor and Council</inline>.—</heading><content>Section 715(b) of title 31, United States Code (DC Code, sec. 47–118.1(b)), is amended by striking “<quotedText>and the Mayor</quotedText>” and inserting “<quotedText>and (other than the audit reports of the District of Columbia Courts) the Mayor</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Independent Annual Audit</inline>.—</heading><content>Section 4 of Public Law 94– 399 (DC Code, sec. 47–119) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <content>This section shall not apply to the District of Columbia Courts or the financial operations thereof.”.</content> </subsection> </quotedContent> </content></subsection> </section> <section> <num value="11245">SEC. 11245.</num> <heading>MISCELLANEOUS BUDGETING AND FINANCING REQUIREMENTS FOR COURTS UNDER DISTRICT LAW.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Deposit of Public Funds</inline>.—</heading><content>Section 2(21) of the District of Columbia Depository Act of 1977 (DC Code, sec. 47–341(21)) is amended by striking “<quotedText>a court, agency</quotedText>” and inserting “<quotedText>an agency</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Reprogramming of Budget Amounts</inline>.—</heading><content>Section 4(h) of D.C. Law 3–100 (DC Code, sec. 47–363(h)) is amended by striking “<quotedText>the District of Columbia courts,</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Control of Grant Funds</inline>.—</heading><paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Section 3(1) of D.C. Law 3–104 (DC Code, sec. 47–382(1)) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>‘Agency’ means the highest organizational structure of the District at which budgeting data is aggregated, but shall not include the District of Columbia Courts.”</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <content>Section 4(b) of D.C. Law 3–104 (DC Code, sec. 47–383(b)) is amended to read at follows:<page identifier="/us/stat/111/755">111 STAT. 755</page> <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <content>The Trustees of the University of the District of Columbia, the Board of Education, and the D.C. General Hospital Commission shall submit to the Mayor two copies of the application and completed approval form, as an advisory notice, concurrent with submitting the application and completed approval form to a grant-making agency in accordance with rules and regulations issued pursuant to subsection (c) of this section.”.</content> </subsection> </quotedContent> </content></paragraph> </subsection> </section> <section> <num value="11246">SEC. 11246.</num> <heading>OTHER PROVISIONS RELATING TO ADMINISTRATION OF DISTRICT OF COLUMBIA COURTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Juror Fees</inline>.—</heading><content>Section 11–1912(a), District of Columbia Code, is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <content>Notwithstanding section 602(a) of the District of Columbia Self-Government and Governmental Reorganization Act, grand and petit jurors serving in the Superior Court shall receive fees and expenses at rates established by the Board of Judges of the Superior Court", except that such fees and expenses may not exceed the respective rates paid to such jurors in the Federal system.”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Compensation and Benefits For Court Personnel</inline>.—</heading><paragraph class="inline"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 11–1726, District of Columbia Code, is amended to read as follows: <quotedContent> <section> <num value="11–1726">“§ 11–1726.</num> <heading>Compensation and benefits for court personnel.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <content>In the case of nonjudicial employees of the District of Columbia courts whose compensation is not otherwise fixed by this title, the Executive Officer shall fix the rates of compensation of such employees without regard to chapter 51 and subchapter III of chapter 53 of title 5, United States Code. Any rates so established shall be subject to the limitation on pay fixed by administrative action in section 5373 of such title. In fixing the rates of compensation of nonjudicial employees under this section, the Executive Officer may be guided by the rates of compensation fixed for employees in the executive and judicial branches of the Federal Government or State or local governments occupying the same or similar positions or occupying positions of similar responsibility, duty, and difficulty.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num><paragraph class="inline"><num value="1">(1)</num> <chapeau>Nonjudicial employees of the District of Columbia courts shall be treated as employees of the Federal Government solely for purposes of any of the following provisions of title 5, United States Code:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A)</num> <content>Subchapter 1 of chapter 81 (relating to compensation for work injuries).</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B)</num> <content>Chapter 83 (relating to retirement).</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">“(C)</num> <content>Chapter 84 (relating to the Federal Employees’ Retirement System).</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="D">“(D)</num> <content>Chapter 87 (relating to life insurance).</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="E">“(E)</num> <content>Chapter 89 (relating to health insurance).</content></subparagraph> </paragraph> <subparagraph class="indent0 fontsize10"><num value="2">“(2)</num> <content>The employing agency shall make contributions under the provisions referred to paragraph (1) at the same rates applicable to agencies of the Federal Government.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="3">“(3)</num> <content>An individual who is a nonjudicial employee of the District of Columbia courts on the date of the enactment of the Balanced Budget Act of 1997 may make, within 60 days after such date, an election under section 8351 or section 8432 of title 5, United States Code, to participate in the Thrift Savings Plan for Federal employees.<page identifier="/us/stat/111/756">111 STAT. 756</page></content></subparagraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num><paragraph class="inline"><num value="1">(1)</num> <chapeau>Judicial employees of the District of Columbia courts shall be treated as employees of the Federal Government for purposes of any of the following provisions of title 5, United States Code:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A)</num> <content>Subchapter 1 of chapter 81 (relating to compensation for work injuries).</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B)</num> <content>Chapter 87 (relating to life insurance).</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">“(C)</num> <content>Chapter 89 (relating to health insurance).</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2)</num> <content>The employing agency shall make contributions under the provisions referred to paragraph (1) at the same rates applicable to agencies of the Federal Government.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3)</num> <content>For purposes of section 8706(b) and section 8901(3)(B) of title 5, United States Code, benefits paid from the retirement system for judicial employees of the District of Columbia courts or from the system providing benefits to survivors of such employees shall be considered an annuity.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="4">“(4)</num> <content>For purposes of section 8901(3)(A) of title 5, United States Code, the retirement system for judicial employees of the District of Columbia courts shall be considered a retirement system for employees of the Government.”.</content></paragraph> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Clerical amendment</inline>.—</heading><content>The table of sections for subchapter II of chapter 15 of title 11, District of Columbia Code, is amended by amending the item relating to section 11–1726 to read as follows: <quotedContent> <toc> <referenceItem role="section"><designator>“11–1726.</designator> <label>Compensation and benefits for court personnel.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendments made by this subsection shall apply with respect to all months beginning after the date on which the Director of the Office of Personnel Management issues regulations to carry out section 11–1726, District of Columbia Code (as amended by paragraph (1)).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Retirement Period for Executive Officer</inline>.—</heading><content>Section 11–1703(d), District of Columbia Code, is amended by striking the period at the end and inserting the following: “, except that the Executive Officer (if initially hired after October 1, 1997) shall be eligible for retirement under subchapter III of chapter 15 when the Executive Officer has completed 7 years of service as Executive Officer, whether continuous or not.”.</content> </subsection> </section> </subchapter> <subchapter> <num value="B">Subchapter B—</num><heading>Judicial Retirement Program</heading> <section> <num value="11251">SEC. 11251.</num> <heading>JUDICIAL RETIREMENT AND SURVIVORS ANNUITY FUND.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Establishment of Fund</inline>.—</heading><content>Section 11–1570, District of Columbia Code, is amended to read as follows: <quotedContent> <section> <num value="11–1570">“§ 11–1570.</num> <heading>The District of Columbia Judicial Retirement and Survivors Annuity Fund.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <chapeau>There is established in the Treasury a fund known as the District of Columbia Judicial Retirement and Survivors Annuity Fund (hereafter in this section referred to as the ‘Fund’), which shall consist of the following assets:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>Amounts deposited by, or deducted and withheld from the salary and retired pay of, a judge under section 1563 or 1567 of this title, which shall be credited to an individual account of the judge.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>Amounts transferred from the District of Columbia Judges’ Retirement Fund under section 124(c)(1) of the District <page identifier="/us/stat/111/757">111 STAT. 757</page>of Columbia Retirement Reform Act, as amended by section 11252 of the Balanced Budget Act of 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>Amounts deposited under subsection (d).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>Any return on investment of the assets of the Fund.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num><paragraph class="inline"><num value="1">(1)</num> <content>The Secretary of the Treasury (hereafter in this section referred to as the ‘Secretary’) shall be responsible for the administration of the Fund. The Secretary may carry out such responsibilities through an agreement with a Trustee or contractor (who may be the Trustee or contractor appointed to carry out responsibilities relating to Federal benefit payments under title I of the National Capital Revitalization and Self-Government Improvement Act of 1997) and an enrolled actuary (as defined in section 7701(a)(35) of the Internal Revenue Code of 1986) who is a member of the American Academy of Actuaries (who may be the enrolled actuary engaged under such Act).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2)</num> <content>The chief judges of the District of Columbia Court of Appeals and Superior Court of the District of Columbia shall submit to the President and the Secretary an annual estimate of the expenditures and appropriations necessary for the maintenance and operation of the Fund, and such supplemental and deficiency estimates as may be required from time to time for the same purposes, according to law.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3)</num> <content>The Secretary may cause periodic examinations of the Fund to be made by an enrolled actuary (as defined in section 7701(a)(35) of the Internal Revenue Code of 1986) who is a member of the American Academy of Actuaries.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num><paragraph class="inline"><num value="1">(1)</num> <content>Amounts in the Fund are available for the payment of judges’ retirement pay, annuities, refunds, and allowances under this subchapter.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2)</num> <content>Notwithstanding any other provision of District law or any other law, rule, or regulation, the Secretary may review benefit determinations under this subchapter made prior to the date of the enactment of the National Capital Revitalization and Self-Government Improvement Act of 1997, and shall make initial benefit determinations after such date.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num><paragraph class="inline"><num value="1">(1)</num> <chapeau>Subject to the availability of appropriations, there shall be deposited in the Fund, not later than the close of each fiscal year (beginning with the first fiscal year which ends more than 6 months after the replacement plan adoption date described in section 103(13) of the National Capital Revitalization and Self-Government Improvement Act of 1997), an amount equal to the sum of—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A)</num> <content>the normal cost for the year;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B)</num> <content>the annual amortization amount for the year (which may not be less than zero); and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">“(C)</num> <content>the covered administrative expenses for the year.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2)</num> <chapeau>For purposes of this subsection:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>The ‘original unfunded liability’ is the amount that is the present value as of June 30, 1997, of future benefits payable from the Fund (net the sum of future normal cost and plan assets as of such date).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>The ‘annual amortization amount’ is the amount determined by the enrolled actuary to be necessary to amortize in equal annual installments (until fully amortized)—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the original unfunded liability over a 30-year period;<page identifier="/us/stat/111/758">111 STAT. 758</page></content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>a net experience gain or loss over a 10-year period; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>any other changes in actuarial liability over a 20-year period.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>The ‘covered administrative expenses’ are the expenses determined by the Secretary (on an annual basis) to be necessary to administer the Fund.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3)</num> <content>Deposits made under this subsection shall be taken from sums available for that fiscal year for the payment of the expenses of the Court, and shall not be credited to the account of any individual.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <content>The Secretary shall invest such portion of the Fund as is not in the judgment of the Secretary required to meet current withdrawals. Such investments shall be in public debt securities with maturities suitable to the needs of the Fund, as determined by the Secretary, and bearing interest at rates determined by the Secretary, taking into consideration current market yields on outstanding marketable obligations of the United States of comparable maturities.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <content>None of the moneys mentioned in this subchapter shall be assignable, either in law or in equity, or be subject to execution, levy, attachment, garnishment, or other legal process (except to the extent permitted pursuant to the District of Columbia Spouse Equity Act of 1988).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <chapeau>Notwithstanding any other provision of District law, rule, or regulation, any civil action brought—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>by an individual to enforce or clarify rights to benefits from the Fund; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <chapeau>by the Secretary—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>to enforce any claim arising (in whole or in part) under this section or any contract entered into to carry out this section,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>to recover benefits improperly paid from the Fund or to clarify an individual’s rights to benefits from the Fund, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>to enforce any provision of this section or any contract entered into to carry out this section,</content></subparagraph> <continuation class="indent0 fontsize10">shall be brought in the United States District Court for the District of Columbia.”.</continuation> </paragraph> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections for subchapter III of chapter 15 of title 11, District of Columbia Code, is amended by amending the item relating to section 11–1570 to read as follows: “11–1570. The District of Columbia Judicial Retirement and Survivors Annuity Fund.”.</content> </subsection> </section> <section> <num value="11252">SEC. 11252.</num> <heading>TERMINATION OF CURRENT FUND AND PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Termination of Judges’ Retirement Fund</inline>.—</heading><content>Section 124 of the District of Columbia Retirement Reform Act (DC Code, sec. 1–714) is amended by striking subsection (c) and inserting the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num><paragraph class="inline"><num value="1">(1)</num> <content>Notwithstanding any other provision of this Act or the amendments made by this Act, upon the date the assets of the Retirement Fund described in title I of the National Capital Revitalization and Self-Government Improvement Act of 1997 are transferred, the assets of the District of Columbia Judges’ Retirement Fund established under subsection (a) shall be transferred to the District of Columbia Judicial Retirement and Survivors Annuity <page identifier="/us/stat/111/759">111 STAT. 759</page>Fund under section 11–1570, District of Columbia Code, and no amounts shall be deposited into the District of Columbia Judges’ Retirement Fund after the date on which the assets are so transferred.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2)</num> <content>The District of Columbia Judges’ Retirement Fund established under subsection (a) shall be continued in the Treasury and appropriated for the purposes provided in this Act until such time as all amounts in such Fund have been expended or transferred to the District of Columbia Judicial Retirement and Survivors Annuity Fund pursuant to paragraph (1). Thereafter any payments of retirement pay, annuities, refunds, and allowances for judicial personnel of the District of Columbia shall be paid from the District of Columbia Judicial Retirement and Survivors Annuity Fund in accordance with subchapter III of chapter 15 of title 11, District of Columbia Code.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Removal of Judges From Retirement Board</inline>.—</heading><chapeau>Section 121(b)(1)(A) of the District of Columbia Retirement Reform Act (DC Code, sec. 1–711(b)(1)(A)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in the matter preceding clause (i), by striking “<quotedText>13</quotedText>” and inserting “<quotedText>11</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking clause (vii); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by redesignating clauses (viii) and (ix) as clauses (vii) and (viii).</content></paragraph> </subsection> </section> <section> <num value="11253">SEC. 11253.</num> <heading>CONFORMING AMENDMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Transfer of Authority Over Fund to Secretary of Treasury</inline>.—</heading><chapeau>Title 11, District of Columbia Code, is amended as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>In sections 11–1561(8)(C), 11–1562(c), 11–1563(b), 11–1563(c), 11–1564(d)(6), 11–1564(d)(7), 11–1566(a), and 11–1570(c), by striking “<quotedText>Commissioner [Mayor]</quotedText>” each place it appears and inserting “<quotedText>Secretary of the Treasury</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>In sections 11–1566(b)(2), 11–1567(a), 11–1567(b), by striking “<quotedText>Mayor</quotedText>” each place it appears and inserting “<quotedText>Secretary of the Treasury</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>In sections 11–1564(d)(2)(A) and 11–1568.1(1)(B), by striking “<quotedText>Mayor of the District of Columbia</quotedText>” each place it appears and inserting “<quotedText>Secretary of the Treasury</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>In section 11–1563(a), by striking “<quotedText>paid to the Custodian of Retirement Funds (as defined in section 102(6) of the District of Columbia Retirement Reform Act)</quotedText>” and inserting “<quotedText>paid to the Secretary of the Treasury</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Definition of Fund</inline>.—</heading><content>Section 11–1561(4), District of Columbia Code, is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>The term “fund” means the District of Columbia Judicial Retirement and Survivors Annuity Fund established by sections 11–1570.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Treatment of Federal Service of Judges</inline>.—</heading><content>Section 11–1564(d)(4), District of Columbia Code, is amended by striking “<quotedText>Judges’ Retirement Fund established by section 124(a) of the District of Columbia Retirement Reform Act</quotedText>” and inserting “<quotedText>Judicial Retirement and Survivors Annuity Fund under section 11–1570</quotedText>”.<page identifier="/us/stat/111/760">111 STAT. 760</page></content> </subsection> </section> </subchapter> <subchapter> <num value="C">Subchapter C—</num><heading>Miscellaneous Conforming and Administrative Provisions</heading> <section> <num value="11261">SEC. 11261.</num> <heading>TREATMENT OF COURTS UNDER MISCELLANEOUS DISTRICT LAWS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Financial Responsibility and Management Assistance Act</inline>.—</heading><content>Paragraph (5) of section 305 of the District of Columbia Financial Responsibility and Management Assistance Act of 1995 (DC Code, sec. 47–393(5)) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>The term ‘District government’ means the government of the District of Columbia, including any department, agency or instrumentality of the government of the District of Columbia; any independent agency of the District of Columbia established under part F of title IV of the District of Columbia Self-Government and Governmental Reorganization Act or any other agency, board, or commission established by the Mayor or the Council; the Council of the District of Columbia; and any other agency, public authority, or public benefit corporation which has the authority to receive monies directly or indirectly from the District of Columbia (other than monies received from the sale of goods, the provision of services, or the loaning of funds to the District of Columbia), except that such term does not include the Authority.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Merit Personnel Act</inline>.—</heading><paragraph class="inline"><num value="1">(1)</num> <chapeau>Section 201 of the District of Columbia Comprehensive Merit Personnel Act of 1978 (DC Code, sec. 1–602.1) is amended—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>(a) Except as provided in subsection (b) or unless</quotedText>” and inserting “<quotedText>Unless</quotedText>”; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B)</num> <content>by striking subsection (b).</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <content>Section 301(13) of the District of Columbia Comprehensive Merit Personnel Act of 1978 (DC Code, sec. 1–603.1(13)) is amended by striking “<quotedText>, the Superior Court of the District of Columbia, and the District of Columbia Court of Appeals shall be considered independent agencies</quotedText>” and inserting “<quotedText>shall be considered an independent agency</quotedText>”.</content></paragraph> </subsection> </section> <section> <num value="11262">SEC. 11262.</num> <heading>REPRESENTATION OF INDIGENTS IN CRIMINAL CASES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Budget</inline>.—</heading><content>Section 11–2607, District of Columbia Code, is amended to read as follows: <quotedContent> <num value="11–2607">“§ 11–2607.</num> <heading>Preparation of Budget.</heading> <content>“The joint committee shall prepare and include in its annual budget requests for the District of Columbia court system estimates of the expenditures and appropriations necessary for furnishing representation by private attorneys to persons entitled to representation in accordance with section 2601 of this title.”.</content> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Authorization of Appropriations</inline>.—</heading><content>Section 11–2608 of the District of Columbia Code is amended to read as follows: <quotedContent> <section> <num value="11–2608">“§ 11–2608.</num> <heading>Authorization of appropriations.</heading> <content>“There are authorized to be appropriated through the State Justice Institute such sums as may be necessary to pay for representation by private attorneys and related services under this chapter. When so specified in appropriation Acts, such appropriations shall remain available until expended.”.</content> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Repeal Authority of Council</inline>.—<page identifier="/us/stat/111/761">111 STAT. 761</page></heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 11–2609, District of Columbia Code,, is repealed.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Clerical amendment</inline>.—</heading><content>The table of sections for chapter 26 of title 11, District of Columbia Code, is amended by striking the item relating to section 11–2609.</content></paragraph> </subsection> </section> </subchapter> </chapter> <chapter> <num value="5">CHAPTER 5—</num><heading>PRETRIAL SERVICES AGENCY AND PUBLIC DEFENDER SERVICE</heading> <section> <num value="11271">SEC. 11271.</num> <heading>AMENDMENTS AFFECTING PRETRIAL SERVICES AGENCY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Sections 23–1304 through 23–1308 of the District of Columbia Code are amended to read as follows: <quotedContent> <section> <num value="23–1304">“§ 23–1304.</num> <heading>Executive committee; composition; appointment and qualifications of Director</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <content>The agency shall be advised by an executive committee of seven members, of which four members shall constitute a quorum. The Executive Committee shall be composed of the following persons or their designees: the Chief Judge of the United States Court of Appeals for the District of Columbia Circuit, the Chief Judge of the United States District Court for the District of Columbia, the Chief Judge of the District of the Columbia Court of Appeals, the Chief Judge of the Superior Court of the District of Columbia, the United States Attorney for the District of Columbia, the Director of the District of Columbia Public Defender Service, and the Director of the District of Columbia Offender Supervision, Defender and Courts Services Agency.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <content>The Chief Judge of the United States Court of Appeals for the District of Columbia Circuit and the Chief Judge of the United States District Court for the District of Columbia, in consultation with the other members of the executive committee, shall appoint a Director of the agency who shall be a member of the bar of the District of Columbia.</content> </subsection> </section> <section> <num value="23–1305">“§ 23–1305.</num> <heading>Duties of director; compensation</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <content>The Director of the agency shall be responsible for the supervision and execution of the duties of the agency. The Director shall be compensated as a member of the Senior Executive Service pursuant to subchapter VIII of chapter 53 of title 5, United States Code.</content> </subsection> </section> <section> <num value="23–1306">“§ 23–1306.</num> <heading>Chief assistant and other agency personnel; compensation</heading> <content>“The Director shall employ a chief assistant who shall be compensated as a member of the Senior Executive Service pursuant to section 5382 of title 5, United States Code. The Director shall employ such agency personnel as may be necessary properly to conduct the business of the agency. All employees other than the chief assistant shall receive compensation that is comparable to levels of compensation established for Federal pretrial services agencies</content> </section> <section> <num value="23–1307">“§ 23–1307.</num> <heading>Annual reports</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <content>The Director shall each year submit to the executive committee and to the Director of the District of Columbia Offender Supervision, Defender and Courts Services Agency a report as to the Pretrial Services Agency’s administration of its responsibilities <page identifier="/us/stat/111/762">111 STAT. 762</page>for the previous fiscal year. The Director shall include in the report a statement of financial condition, revenues, and expenses for the past fiscal year.</content> </subsection> </section> <section> <num value="23–1308">“§ 23–1308.</num> <heading>Appropriation; budget</heading> <content>“There are authorized to be appropriated through the State Justice Institute in each fiscal year such sums as may be necessary to carry out the provisions of this subchapter. Funds appropriated by Congress for the District of Columbia Pretrial Services Agency shall be received by the Director of the District of Columbia Offender Supervision, Defender and Courts Services Agency, and shall be disbursed by that Director to and on behalf of the District of Columbia Pretrial Services Agency. The District of Columbia trial Services Agency shall submit to the Director of the District of Columbia Offender Supervision, Defender and Courts Services Agency at the time and in the form prescribed by that Director, reports of its activities and financial position and its proposed budget.”.</content> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections for subchapter I of chapter 13 of title 23, District of Columbia Code, is amended by striking the items relating to sections 23–1304 through 23–1308 and inserting the following: <quotedContent> <toc> <referenceItem role="section"><designator>“23–1304.</designator> <label>Executive committee; composition, appointment and qualifications of Director.</label></referenceItem> <referenceItem role="section"><designator>“23–1305.</designator> <label>Duties of director; compensation.</label></referenceItem> <referenceItem role="section"><designator>“23–1306.</designator> <label>Chief assistant and other agency personnel; compensation.</label></referenceItem> <referenceItem role="section"><designator>“23–1307.</designator> <label>Annual reports.</label></referenceItem> <referenceItem role="section"><designator>“23–1308.</designator> <label>Appropriation: budget.”</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="11272">SEC. 11272.</num> <heading>AMENDMENTS AFFECTING PUBLIC DEFENDER SERVICE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Board of Trustees</inline>.—</heading><content>Section 303(a) of the District of Columbia Court Reform and Criminal Procedure Act of 1970 (DC Code, sec. 1–2703(a)) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <content>The Service shall be advised on matters of general policy by a Board of Trustees.”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Appointment of Director and Deputy Director</inline>.—</heading><content>Section 304 of such Act (DC Code, sec. 1–2704) is amended to read as follows: <quotedContent> <section> <num value="304">“SEC. 304.</num> <heading>DIRECTOR AND DEPUTY DIRECTOR; APPOINTMENT: DUTIES; MEMBERSHIP IN BAR REQUIRED.</heading> <content>“The Chief Judge of the United States Court of Appeals for the District of Columbia Circuit and the Chief Judge of the United States District Court for the District of Columbia, in consultation with the persons described in subparagraphs (B) through (D) of section 303(b)(1) and the Board of Trustees, shall appoint a Director and Deputy Director of the Service. The Director shall be responsible for the supervision and execution of the duties of the Service The Deputy Director shall assist the Director and shall perform such duties as the Director may prescribe. The Director and Deputy Director shall be members of the bar of the District of Columbia. The Director of the District of Columbia Offender Supervision, Defender and Courts Services Agency shall fix the compensation of the Director and the Deputy Director, but the compensation of the Director shall not exceed the compensation received by the United States Attorney for the District of Columbia.”.</content> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Annual Report and Audit</inline>.—</heading><chapeau>Section 306 of such Act (DC Code, sec. 1–2706) is amended—<page identifier="/us/stat/111/763">111 STAT. 763</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in subsection (a)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>Board of Trustees</quotedText>” and inserting “<quotedText>Director</quotedText>”, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking “<quotedText>and to the Mayor of the District of Columbia</quotedText>” and inserting “<quotedText>to the Director of the District of Columbia Offender Supervision, Defender and Courts Services Agency, and to the Office of Management and Budget</quotedText>”; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>in subsection (b)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>Board of Trustees</quotedText>” and inserting “<quotedText>Director</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking “<quotedText>the Administrative Office of the United States Courts</quotedText>” and inserting “<quotedText>the Director of the District of Columbia Offender Supervision, Defender and Courts Services Agency</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Appropriations</inline>.—</heading><chapeau>Section 307 of such Act (DC Code, sec. 1–2707) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by amending subsection (a) to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <content>There are authorized to be appropriated through the State Justice Institute in each fiscal year such sums as may be necessary to carry out the provisions of this chapter. Funds appropriated by Congress for the District of Columbia Public Defender Service shall be received by the Director of the District of Columbia Offender Supervision, Defender and Courts Services Agency, and shall be disbursed by that Director to and on behalf of the Service. The<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> Service shall submit to the Director of the District of Columbia Offender Supervision, Defender and Courts Services Agency, at the time and in the form prescribed by that Director, reports of its activities and financial position and its proposed budget.”; and</content> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subsection (b), by striking “<quotedText>Upon approval of the Board of Trustees, the</quotedText>” and inserting “<quotedText>The</quotedText>” .</content></paragraph> </subsection> </section> </chapter> <chapter> <num value="6">CHAPTER 6—</num><heading>MISCELLANEOUS PROVISIONS</heading> <section> <num value="11281">SEC. 11281.</num> <heading>TECHNICAL ASSISTANCE AND RESEARCH.</heading> <chapeau>There are authorized to be appropriated to the National<sidenote><p class="indent0 firstIndent0 fontsize8">Appropriation authorization.</p></sidenote> Institute of Justice in each fiscal year (beginning with fiscal year 1998) such sums as may be necessary for the following activities:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Research and demonstration projects, evaluations, and technical assistance to assess and analyze the crime problem in the District of Columbia, and to improve the ability of the criminal justice and other systems and entities in the District of Columbia to prevent, solve, and punish crimes.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>The establishment of a locally-based corporation or institute in the District of Columbia supporting research and demonstration projects relating to the prevention, solution, or punishment of crimes in the District of Columbia, including the provision of related technical assistance.</content></paragraph> </section> <section> <num value="11282">SEC. 11282.</num> <heading>EXEMPTION FROM PERSONNEL AND BUDGET CEILINGS FOR TRUSTEES AND RELATED AGENCIES.</heading> <content>The Trustees described in sections 11202 and 11232 and the activities and personnel of, and the funds allocated or otherwise available to, the Trustees and the agencies over which the Trustees exercise financial oversight pursuant to those sections, shall not be subject to any general personnel or budget limitations which <page identifier="/us/stat/111/764">111 STAT. 764</page>otherwise apply to the District of Columbia government or its agencies in any appropriations act.</content> </section> </chapter> </subtitle> <subtitle> <num value="D">Subtitle D—</num><heading>Privatization of Tax Collection and Administration</heading> <section> <num value="11301">SEC. 11301.</num> <heading>FINDINGS.</heading> <chapeau>Congress finds as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>The District of Columbia government has historically had a poor record of determining and collecting all revenue it is due under its revenue code.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>The impact on the District’s financial condition of poor administration and collection is significant and has contributed both to the size of its accumulated operating deficit and to the difficulty in balancing the budget going forward.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>More complete collection of taxes would not only increase District of Columbia revenues, but would give residents and businesses a sense of equity and that all were paying their fair share.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>Once District tax processing and collection is competently managed it will be possible for the District government to accurately assess the true value of its many taxes and determine that some may be reduced or eliminated without a significant negative impact on revenues.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>Any reduction or elimination of non-productive or counterproductive taxes or taxes which cost more to administer than they produce in revenue would significantly improve the negative atmosphere surrounding the District of Columbia tax system and its enforcement.</content></paragraph> </section> <section> <num value="11302">SEC. 11302.</num> <heading>AUTHORIZING CHIEF FINANCIAL OFFICER TO PRIVATIZE TAX ADMINISTRATION AND COLLECTION.</heading> <content>The Chief Financial Officer of the District of Columbia may enter into contracts with a private entity for the administration and collection of taxes of the District of Columbia.</content> </section> </subtitle> <subtitle> <num value="E">Subtitle E—</num><heading>Financing of District of Columbia Accumulated Deficit</heading> <section> <num value="11401">SEC. 11401.</num> <heading>FINDINGS.</heading> <chapeau>Congress finds as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>The District of Columbia government sold accumulated deficit financing bonds in 1991.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Between 1991 and the end of fiscal year 1997 the District of Columbia government is expected to accumulate an operating deficit in excess of $500,000,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Requiring the District of Columbia budget for fiscal year 1998 to be balanced will ensure that no further addition is made to the accumulated operating deficit.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>In every other example of an American city in financial crisis, a vital and necessary component of recovery was to finance the accumulated operating deficit.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>Carrying forward an accumualted operating deficit of more than $500,000,000 has a significant negative impact on <page identifier="/us/stat/111/765">111 STAT. 765</page>the District of Columbia’s cash flow and financial condition and on its ability to improve its credit rating.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>It is not feasible to carry forward such a debt with an expectation of paying it off gradually from future budget surpluses.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <content>Financing the accumulated deficit would improve the District’s cash management position and allow more normal cash management techniques.</content></paragraph> </section> <section> <num value="11402">SEC. 11402.</num> <heading>AUTHORIZATION FOR INTERMEDIATE-TERM ADVANCES OF FUNDS BY THE SECRETARY OF THE TREASURY TO LIQUIDATE THE ACCUMULATED GENERAL FUND DEFICIT OF THE DISTRICT OF COLUMBIA.</heading> <chapeau>Title VI of the District of Columbia Revenue Act of 1939 (DC Code, sec. 47–3401 et seq.) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by redesignating sections 602 through 605 as sections 603 through 606, respectively; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting after section 601 the following: <quotedContent> <section> <num value="602">“SEC. 602.</num> <heading>INTERMEDIATE-TERM ADVANCES FOR LIQUIDATION OF DEFICIT.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>If the conditions in subsection (b) are satisfied, the Secretary shall make an advance of funds from time to time, out of any money in the Treasury not otherwise appropriated and to the extent provided in advance in annual appropriations Acts, for the purpose of assisting the District government in liquidating the outstanding accumulated operating deficit of the general fund of the District government existing as of September 30, 1997.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Conditions to Making Any Intermediate-Term Advance</inline>.—</heading><chapeau>The Secretary shall make an advance under this section if—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <chapeau>the Mayor delivers to the Secretary the following instruments, in form and substance satisfactory to the Secretary—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>a financing agreement in which the Mayor agrees to procedures for requisitioning advances;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>a requisition for an advance under this section; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>a promissory note evidencing the District government’s obligation to reimburse the Treasury for the requisitioned advance, which note may be a general obligation bond issued under section 461(a) of the District of Columbia Self-Government and Governmental Reorganization Act by the District government to the Secretary if the Secretary determines that such a bond is satisfactory;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the date on which the requisitioned advance is requested to be made is not later than 3 years from the date of enactment of the Balanced Budget Act of 1997;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <chapeau>the District government delivers to the Secretary—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>evidence demonstrating to the satisfaction of the Secretary that, at the time of the Mayor’s requisition for an advance, the District government is effectively unable to obtain credit in the public credit markets or elsewhere in sufficient amounts and on sufficiently reasonable terms to meet the District government’s need for financing to accomplish the purpose described in subsection (a); and<page identifier="/us/stat/111/766">111 STAT. 766</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>a schedule setting out the anticipated timing and amounts of requisitions for advances under this section;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <chapeau>the Authority certifies to the Secretary that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>there is an approved financial plan and budget in effect under the District of Columbia Financial Responsibility and Management Assistance Act of 1995 for the fiscal year in which the requisition is to be made;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>at the time that the Mayor’s requisition for an advance is delivered to the Secretary, the District government is in compliance with the approved financial plan and budget;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>both the receipt of funds from such advance and the reimbursement or Treasury for such advance are consistent with the approved financial plan and budget for the year;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>such advance will not adversely affect the financial stability of the District government; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>at the time that the Mayor’s requisition for an advance is delivered to the Secretary, the District government is effectively unable to obtain credit in the public credit markets or elsewhere in sufficient amounts and on sufficiently reasonable terms to meet the District government’s need for financing to accomplish the purpose described in subsection (a);</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Certification.</p></sidenote> <content>the Inspector General of the District of Columbia certifies to the Secretary the information described in subparagraphs (A) through (D) of paragraph (4), and in making this certification, the Inspector General may rely upon an audit conducted by an outside auditor engaged by the Inspector General under section 208(a)(4) of the District of Columbia Procurement Practices Act of 1985 if, after reasonable inquiry, the Inspector General concurs in the findings of such audit;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <chapeau>the Secretary determines that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>there is reasonable assurance of reimbursement for the requisitioned advance; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the debt owed by the District government to the Treasury on account of the requisitioned advance will not be subordinate to any other debt owed by the District or to any other claims against the District; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <content>the Secretary receives from such persons as the Secretary determines to be appropriate such additional certifications and opinions relating to such matters as the Secretary determines to be appropriate.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Amount of Any Intermediate-Term Advance</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in paragraph (3), if the conditions in paragraph (2) are satisfied, each advance made under this section shall be in the amount designated by the Mayor in the Mayor’s requisition for such advance.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Conditions Applicable to Designated Amount</inline>.—</heading><chapeau>Paragraph (1) applies if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the Mayor certifies that the amount designated in the Mayor’s requisition for such advance is needed to accomplish the purpose described in subsection (a) within 30 days of the time that the Mayor’s requisition is delivered to the Secretary; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the Authority concurs in the Mayor’s certification under subparagraph (A).<page identifier="/us/stat/111/767">111 STAT. 767</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Maximum amount</inline>.—</heading><content>Notwithstanding paragraph (1), the aggregate amount of all advances made under this section shall not be greater than $300,000,000.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Maturity of Any Intermediate-Term Advance</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in paragraphs (2) and (3), each advance made under this section shall mature on the date designated by the Mayor in the Mayor’s requisition for such advance.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Latest permissible maturity date</inline>.—</heading><content>Notwithstanding paragraph (1), the maturity date for any advance made under this section shall not be later than 10 years from the date on which the first advance under this section is made.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Secretary’s right to require early reimbursement</inline>.—</heading><content>Notwithstanding paragraph (1), if the Secretary determines, at any time while any advance made under this section has not been fully reimbursed, that the District is able to obtain credit in the public credit markets or elsewhere in sufficient amounts and on sufficiently reasonable terms, in the judgment of the Secretary, to refinance all or a portion of the unpaid balance of such advance in the public credit markets or elsewhere without adversely affecting the financial stability of the District government, the Secretary may require reimbursement for all or a portion of the unpaid balance of such advance at any time after the Secretary makes the determination.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Interest Rate</inline>.—</heading><content>Each advance made under this section shall bear interest at an annual rate equal to a rate determined by the Secretary at the time that the Secretary makes such advance taking into consideration the prevailing yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the repayment schedule of such advance, plus ⅛ of 1 percent.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Other Terms and Conditions</inline>.—</heading><content>Each advance made under this section shall be on such other terms and conditions, including repayment schedule, as the Secretary determines to be appropriate.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Deposit of Advances</inline>.—</heading><content>As provided in section 204(b) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995, advances made under this section for the account of the District government shall be deposited by the Secretary into an escrow account held by the Authority.”.</content> </subsection> </section> </quotedContent> </content></paragraph> </section> <section> <num value="11403">SEC. 11403.</num> <heading>CONFORMING AMENDMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Amendment to Section 601</inline>.—</heading><chapeau>Section 601 of the District of Columbia Revenue Act of 1939 (DC Code, sec. 47–3401) is amend—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subsection (c)(2)(B)(i)(IV), by striking “<quotedText>602(b)</quotedText>” and inserting “<quotedText>603(b)</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subsection (d)(2)(B)(iii), by striking “<quotedText>602(b)</quotedText>” and inserting “<quotedText>603(b)</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Amendment to Section 604</inline>.—</heading><chapeau>Section 604 of the District of Columbia Revenue Act of 1939 (DC Code, sec. 47–3401.3) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subsection (a)(2)(A)(i), by striking “<quotedText>602</quotedText>” and inserting “<quotedText>603</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subsection (a)(2)(B)(i), by striking “<quotedText>602</quotedText>” and inserting “<quotedText>603</quotedText>”.<page identifier="/us/stat/111/768">111 STAT. 768</page></content></paragraph> </subsection> </section> <section> <num value="11404">SEC. 11404.</num> <heading>TECHNICAL CORRECTIONS.</heading> <chapeau>Section 601 of the District of Columbia Revenue Act of 1939 (DC Code, sec. 47–3401) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subsection (a)(3)(D), by striking “<quotedText>September 30, 1995</quotedText>” and inserting “<quotedText>September 30, 1996</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subsection (b)(2)(E), by striking “<quotedText>September 30, 1996</quotedText>” and inserting “<quotedText>September 30, 1997</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>in subsection (c)(2)(B)(i), by striking “<quotedText>October 1, 1995</quotedText>” and inserting “<quotedText>September 30, 1995</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>in subsection (d)(2)(B)(i)(II), by striking “<quotedText>September 30, 1997</quotedText>” and inserting “<quotedText>September 30, 1998</quotedText>”</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <chapeau>in subsection (d)(2)(B)(ii)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>September 30, 1995</quotedText>” and inserting “<quotedText>October 1, 1995</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking “<quotedText>September 30, 1997</quotedText>” and inserting “<quotedText>October 1, 1997</quotedText>”; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>in subsection (d)(2)(C)(iv), by striking “<quotedText>September 30, 1997</quotedText>” and inserting “<quotedText>September 30, 1998</quotedText>”.</content></paragraph> </section> <section> <num value="11405">SEC. 11405.</num> <heading>AUTHORIZATION FOR ISSUANCE OF GENERAL OBLIGATION BONDS BY THE DISTRICT OF COLUMBIA TO FINANCE OR REFUND ITS ACCUMULATED GENERAL FUND DEFICIT.</heading> <chapeau>Section 461(a) of the District of Columbia Self-Government and Governmental Reorganization Act (DC Code, sec. 47–321(a)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in paragraph (1), by inserting “<quotedText>to finance or refund the outstanding accumulated operating deficit of the general fund of the District of $500,000,000, existing as of September 30, 1997,</quotedText>” after “existing as of September 30, 1990,”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in paragraph (2), by inserting “<quotedText>existing as of September 30, 1990</quotedText>” after “operating deficit”.</content></paragraph> </section> </subtitle> <subtitle> <num value="F">Subtitle F—</num><sidenote><p class="indent0 firstIndent0 fontsize8">District of Columbia Bond Financing Improvements Act of 1997.</p></sidenote><heading>District of Columbia Bond Financing Improvements</heading> <section> <num value="11501">SEC. 11501.</num> <heading>SHORT TITLE.</heading> <content>This subtitle may be cited as the “District of Columbia Bond Financing Improvements Act of 1997”.</content> </section> <section> <num value="11502">SEC. 11502.</num> <heading>FINDINGS.</heading> <chapeau>Congress finds as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>The bond authorization provision of the District of Columbia Self-Government and Governmental Reorganization Act (commonly known as the “Home Rule Act”) have not been updated to conform with changes in the municipal securities marketplace.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>The Home Rule Act unduly limits the ability of the District to take advantage of cost savings, investment opportunities, and other efficiencies generally available to municipal securities issuers.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Section 461 of the Home Rule Act limits the ability of the District government to implement cost-effective capital planning to the extent that it does not permit the District access to interim capital financing in anticipation of its periodic <page identifier="/us/stat/111/769">111 STAT. 769</page>long-term borrowings.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>Section 462 of the Home Rule Act prevents the reprogramming of unused bond proceeds from dormant projects to other pending, authorized, and viable projects.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>Section 466 of the Home Rule Act requires that the District undertake competitive bond sales even under circumstances in which greater efficiencies can be achieved through negotiated sales.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>Section 490 of the Home Rule Act does not permit the issuance and sale of taxable and tax-exempt bonds for the full range of economic development and governmental purposes permitted the States and their political subdivisions.</content></paragraph> </section> <section> <num value="11503">SEC. 11503.</num> <heading>AMENDMENT TO SECTION 462 (RELATING TO CONTENTS OF BORROWING LEGISLATION AND ELECTIONS ON ISSUING GENERAL OBLIGATION BONDS).</heading> <content>Section 462(a) of the District of Columbia Self-Government and Governmental Reorganization Act (DC Code, sec. 47–322(a)) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <chapeau>The Council may by act authorize the issuance of general obligation bonds for the purposes specified in section 461. Such an Act shall contain, at least, provisions—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>briefly describing the projects or categories of projects to be financed by the Act;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>identifying the act authorizing each such project or category of projects;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>setting forth the maximum amount of the principal of the indebtedness which may be incurred for the projects to be financed;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>setting forth the maximum rate of interest to be paid on such indebtedness;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>setting forth the maximum allowable maturity for the issue and the maximum debt service payable in any year; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>setting forth, in the event that the Council determines in its discretion to submit the question of issuing such bonds to a vote of the qualified voters of the District, the manner of holding such election, the date of such election, the manner of voting for or against the incurring of such indebtedness, and the form of ballot to be used at such election.”.</content></paragraph> </subsection> </quotedContent> </content></section> <section> <num value="11504">SEC. 11504.</num> <heading>AMENDMENT TO SECTION 466 (RELATING TO PUBLIC OR NEGOTIATED SALE OF GENERAL OBLIGATION BONDS).</heading> <content>Section 466 of the District of Columbia Self-Government and Governmental Reorganization Act (DC Code, sec. 47–326) is amended by striking all after the heading and inserting the following: <quotedContent> <section> <num value="466">“<inline class="smallCaps">Sec</inline>. 466.</num> <content class="inline">General obligation bonds issued under this part may be sold at a private sale on a negotiated basis (in such manner as the Mayor may determine to be in the public interest), or may be sold at public sale upon sealed proposals after publication of a notice of such public sale at least once not less than 10 days prior to the date fixed for sale in a daily newspaper carrying municipal bond notices and devoted primarily to financial news or to the subject of State and municipal bonds published in the city of New York, New York, and in 1 or more newspapers of general circulation published in the District. Such notice of public sale shall state, among other things, that no proposal shall be considered unless there is deposited with the District as a down payment a certified check, cashier’s check, or surety for an amount <page identifier="/us/stat/111/770">111 STAT. 770</page>equal to at least 2 percent of the par amount of general obligation bonds bid for, and the Mayor shall reserve the right to reject any and all bids.”.</content> </section> </quotedContent> </content></section> <section> <num value="11505">SEC. 11505.</num> <heading>AMENDMENT TO SECTION 467 (RELATING TO AUTHORITY TO CREATE SECURITY INTERESTS IN DISTRICT REVENUES).</heading> <content>Section 467 of the District of Columbia Self-Government and Governmental Reorganization Act (D.C. Code Sec. 47–326.1.) is amended by striking all after the heading and inserting the following: <quotedContent> <section> <num value="467">“SEC. 467.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>An act of the Council authorizing the issuance of general obligation bonds or notes under section 461(a), section 471(a), section 472(a), or section 475(a) may create a security interest in any District revenues as additional security for the payment of the bonds or notes authorized by such act.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Contents of Acts</inline>.—</heading><chapeau>Any such act creating a security interest in District revenues may contain provisions (which may be part of the contract with the holders of such bonds or notes)—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>describing the particular District revenues which are subject to such security interest;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>creating a reasonably required debt service reserve fund or any other special fund;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>authorizing the Mayor of the District to execute a trust indenture securing the bonds or notes;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>vesting in the trustee under such a trust indenture such properties, rights, powers, and duties in trust as may be necessary, convenient, or desirable;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <chapeau>authorizing the Mayor of the District to enter into and amend agreements concerning—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the custody, collection, use, disposition, security, investment, and payment of the proceeds of the bonds or notes and the District revenues which are subject to such security interest; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the doing of any act (or the refraining from doing any act) that the District would have the right to do in the absence of such an agreement;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>prescribing the remedies of the holders of the bonds or notes in the event of a default; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <content>authorizing the Mayor to take any other actions in connection with the issuance, sale, delivery, security, and payment of the bonds or notes.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Timing and Perfection of Security Interests</inline>.—</heading><content>Notwithstanding article 9 of title 28 of the District of Columbia Code, any security interest in District revenues created under subsection (a) shall be valid, binding, and perfected from the time such security interest is created, with or without the physical delivery of any funds or any other property and with or without any further action. Such security interest shall be valid, binding, and perfected whether or not any statement, document, or instrument relating to such security interest is recorded or filed. The lien created by such security interest is valid, binding, and perfected with respect to any individual or legal entity having claims against the District, whether or not such individual or legal entity has notice of such lien.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Obligations and Expenditures Not Subject to Appropriation</inline>.—</heading><content>The fourth sentence of section 446 shall not apply to <page identifier="/us/stat/111/771">111 STAT. 771</page>any obligation or expenditure of any District revenues to secure any general obligation bond or note under subsection (a).”.</content> </subsection> </section> </quotedContent> </content></section> <section> <num value="11506">SEC. 11506.</num> <heading>AMENDMENT TO SECTION 472 (RELATING TO BORROWING IN ANTICIPATION OF REVENUES).</heading> <content>Section 472 of the District of Columbia Self-Government and Governmental Reorganization Act (DC Code, sec. 47–328) is amended by striking all after the heading and inserting the following: <quotedContent> <section> <num value="472">“SEC. 472.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In anticipation of the collection or receipt of revenues for a fiscal year, the Council may by act authorize the issuance of general obligation notes for such fiscal year, to be known as revenue anticipation notes.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Limit on Aggregate Notes Outstanding</inline>.—</heading><content>The total amount of all revenue anticipation notes issued under subsection (a) outstanding at any time during a fiscal year shall not exceed 20 percent of the total anticipated revenue of the District for such fiscal year, as certified by the Mayor under this subsection. The<sidenote><p class="indent0 firstIndent0 fontsize8">Certification.</p></sidenote> Mayor shall certify, as of a date which occurs not more than 15 days before each original issuance of such revenue anticipation notes, the total anticipated revenue of the District for such fiscal year.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Permitted Outstanding Duration</inline>.—</heading><content>Any revenue anticipation note issued under subsection (a) may be renewed. Any such note, including any renewal note, shall be due and payable not later than the last day of the fiscal year during which the note was originally issued.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Effective Date of Authorization Acts; Payments Not Subject to Appropriation</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Effective date</inline>.—</heading><chapeau>Notwithstanding section 602(c)(1), any act of the Council authorizing the issuance of revenue anticipation notes under subsection (a) shall take effect—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>if such act is enacted during a control year (as defined in section 305(4) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995), on the date of approval by the District of Columbia Financial Responsibility and Management Assistance Authority; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>if such act is enacted during any other year, on the date of enactment of such act.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Payments Not Subject to Appropriation</inline>.—</heading><content>The fourth sentence of section 446 shall not apply to any amount obligated or expended by the District for the payment of the principal of, interest on, or redemption premium for any revenue anticipation note issued under subsection (a).”.</content></paragraph> </subsection> </section> </quotedContent> </content></section> <section> <num value="11507">SEC. 11507.</num> <heading>ADDITION OF NEW SECTION 475 (RELATING TO GENERAL OBLIGATION BOND ANTICIPATION NOTES).</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subpart 2 of part E of title IV of the District of Columbia Self-Government and Governmental Reorganization Act is amended by adding at the end the following new section: <quotedContent> <level> <heading class="centered">“<inline class="smallCaps">bond anticipation notes</inline></heading> <section> <num value="475">“SEC. 475.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Authorizing Issuance</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In anticipation of the issuance of general obligation bonds, the Council may by act authorize the issuance of general obligation notes to be known as bond anticipation notes in accordance with this section.<page identifier="/us/stat/111/772">111 STAT. 772</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Purposes; permitting issuance of general obligation bonds to cover indebtedness</inline>.—</heading><content>The proceeds of bond anticipation notes issued under this section shall be used for the purposes for which general obligation bonds may be issued under section 461, and such notes shall constitute indebtedness which may be refunded through the issuance of general obligation bonds under such section.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Maximum Annual Debt Service Amount</inline>.—</heading><content>The Act of the Council authorizing the issuance of bond anticipation notes shall set forth for the bonds anticipated by such notes an estimated maximum annual debt service amount based on an estimated schedule of annual principal payments and an estimated schedule of annual interest payments (based on an estimated maximum average annual interest rate for such bonds over a period of 30 years from the earlier of the date of issuance of the notes or the date of original issuance of prior notes in anticipation of those bonds). Such estimated maximum annual debt service amount as estimated at the time of issuance of the original bond anticipation notes shall be included in the calculation required by section 603(b) while such notes or renewal notes are outstanding.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Permitted Outstanding Duration</inline>.—</heading><content>Any bond anticipation note, including any renewal note, shall be due and payable not later than the last day of the third fiscal year following the fiscal year during which the note was originally issued.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">General Authority of Council</inline>.—</heading><content>If provided for in Act of the Council authorizing such an issue of bond anticipation notes, bond anticipation notes may be issued in succession, in such amounts, at such times, and bearing interest rates within the permitted maximum authorized by such Act.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Effective Date of Authorization Acts; Payments Not Subject to Appropriation</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Effective date</inline>.—</heading><chapeau>Notwithstanding section 602(c)(1), any act of the Council authorizing the renewal of bond anticipation notes under subsection (c) or the issuance of general obligation bonds under section 461(a) to refund any bond anticipation notes shall take effect—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>if such act is enacted during a control year (as defined in section 305(4) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995), on the date of approval by the District of Columbia Financial Responsibility and Management Assistance Authority; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>if such act is enacted during any other year, on the date of enactment of such act.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Payment not subject to appropriation</inline>.—</heading><content>The fourth sentence of 446 shall not apply to any amount obligated or expended by the District for the payment of the principal of, interest on, or redemption premium for any bond anticipation note issued under this section.”.</content></paragraph> </subsection> </section> </level> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of contents for the District of Columbia Self-Government and Governmental Reorganization Act is amended by adding at the end of the items relating to subpart 2 of part E of title IV the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 475.</designator> <label>Bond anticipation notes.”.</label></referenceItem> </toc> </quotedContent> <page identifier="/us/stat/111/773">111 STAT. 773</page> </content></subsection> </section> <section> <num value="11508">SEC. 11508.</num> <heading>AMENDMENT TO SECTION 490 (RELATING TO REVENUE BONDS AND OTHER OBLIGATIONS).</heading> <chapeau>Section 490 of the District of Columbia Self-Government and Governmental Reorganization Act (DC Code, sec. 47–334), as amended by section 2 of the District of Columbia Water and Sewer Authority Act of 1996, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in subsection (a)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by amending paragraphs (1) through (3) to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num><paragraph class="inline"><num value="1">(1)</num> <content>Subject to paragraph (2), the Council may by act or by resolution authorize the issuance of taxable and tax-exempt revenue bonds, notes, or other obligations to borrow money to 1finance, refinance, or reimburse and to assist in the financing, refinancing, or reimbursing of or for capital projects and other undertakings by the District or by any District instrumentality, or on behalf of any qualified applicant, including capital projects or undertakings in the areas of housing; health facilities; transit and utility facilities; manufacturing; sports, convention, and entertainment facilities; recreation, tourism and hospitality facilities; facilities to house and equip operations of the District government or its instrumentalities; public infrastructure development and redevelopment; elementary, secondary and college and university facilities; educational programs which provide loans for the payment of educational expenses for or on behalf of students; facilities used to house and equip operations related to the study, development, application, or production of innovative commercial or industrial technologies and social services; water and sewer facilities (as defined in paragraph (5)); pollution control facilities; solid and hazardous waste disposal facilities; parking facilities, industrial and commercial development; authorized capital expenditures of the District; and any other property or project that will, as determined by the Council, contribute to the health, education, safety, or welfare, of, or the creation or preservation of jobs for, residents of the District, or to economic development of the District, and any facilities or property, real or personal, used in connection with or supplementing any of the foregoing; lease-purchase financing of any of the foregoing facilities or property; and any costs related to the issuance, carrying, security, liquidity or credit enhancement of or for revenue bonds, notes, or other obligations, including, capitalized interest and reserves, and the costs of bond insurance, letters of credit, and guaranteed investment, forward purchase, remarketing, auction, and swap agreements. Any such financing, refinancing, or reimbursement may be effected by loans made directly or indirectly to any individual or legal entity, by the purchase of any mortgage, note, or other security, or by the purchase, lease, or sale of any property.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2)</num> <content>Any revenue bond, note, or other obligation issued under paragraph (1) shall be a special obligation of the District and shall be a negotiable instrument, whether or not such revenue bond, note, or other obligation is a security as defined in section 28:8–102(1)(a) of title 28 of the District of Columbia Code.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3)</num> <content>Any revenue bond, note, or other obligation issued under paragraph (1) shall be paid and secured (as to principal, interest, and any premium) as provided by the act or resolution of the Council authorizing the issuance of such revenue bond, note, or other obligation. Any act or resolution of the Council, or any delegation of Council authority under subsection (a)(6), authorizing the <page identifier="/us/stat/111/774">111 STAT. 774</page>issuance of revenue bonds, notes, or other obligations may provide for (A) the payment of such revenue bonds, notes, or other obligations from any available revenues, assets, property (including water and sewer enterprise fund revenues, assets, or other property in the case of bonds, notes, or obligations issued with respect to water and sewer facilities), and (B) the securing of such revenue bond, note, or other obligation by the mortgage of real property or the creation of a security interest in available revenues, assets, or other property (including water and sewer enterprise fund revenues, assets, or other property in the case of bonds, notes, or obligations issued with respect to water and sewer facilities).”,</content></paragraph> </subsection> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by amending paragraph (4)(A) to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num><subparagraph class="inline"><num value="A">(A)</num> <content>In authorizing the issuance of any revenue bond, note, or other obligation under paragraph (1), the Council may enter into, or authorize the Mayor to enter into, any agreement concerning the acquisition, use, or disposition of any available revenues, assets, or property. Any such agreement may create a security interest in any available revenues, assets, or property, may provide for the custody, collection, security, investment, and payment of any available revenues (including any funds held in trust) for the payment of such revenue bona, note, or other obligation, may mortgage any property, may provide for the acquisition, construction, maintenance, and disposition of the undertaking financed or refinanced using the proceeds of such revenue bond, note, or other obligation, and may provide for the doing of any act (or the refraining from doing of any act) which the District has the right to do in the absence of such agreement. Any such agreement may be assigned for the benefit of, or made a part of any contract with, any holder of such revenue bond, note, or other obligation issued under paragraph (1).”, and</content></subparagraph></paragraph> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num><subparagraph class="inline"><num value="A">(A)</num> <content>The Council may by act delegate to any District instrumentality the authority of the Council under subsection (a)(1) to issue taxable or tax-exempt revenue bonds, notes, or other obligations to borrow money for the purposes specified in this subsection. For purposes of this paragraph, the Council shall specify for what undertakings revenue bonds, notes, or other obligations may be issued under each delegation made pursuant to this paragraph. Any District instrumentality may exercise the authority and the powers incident thereto delegated to it by the Council as described in the first sentence of this paragraph only in accordance with this paragraph and shall be consistent with this paragraph and the terms of the delegation.</content></subparagraph></paragraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B)</num> <content>Revenue bonds, notes, or other obligations issued by a District instrumentality under a delegation of authority described in subparagraph (A) shall be issued by resolution of that instrumentality, and any such resolution shall not be considered to be an act of the Council.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">“(C)</num> <content>Nothing in this paragraph shall be construed as restricting, impairing, or superseding the authority otherwise vested by law in any District instrumentality.”;</content></subparagraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by amending subsection (b) to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <content>No property owned by the United States may be mortgaged or made subject to any security interest to secure any revenue bond, note, or other obligation issued under subsection (a)(1).”;<page identifier="/us/stat/111/775">111 STAT. 775</page></content> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by amending subsection (c) to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <content>Any and all such revenue bonds, notes, or other obligations issued under subsection (a)(1) shall not be general obligations of the District, shall not be a pledge of or involve the faith and credit or taxing power of the District (other than with respect to any dedicated taxes) and shall not constitute a debt of the District, and shall not constitute lending of the public credit for private undertakings for purposes of section 602(a)(2).”;</content> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>by amending subsection (f) to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <chapeau>The fourth sentence of section 446 shall not apply to—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>any amount (including the amount of any accrued interest or premium) obligated or expended from the proceeds of the sale of any revenue bond, note, or other obligations issued under subsection (a)(1);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>any amount obligated or expended for the payment of the principal of, interest on, or any premium for any revenue bond, note, or other obligation issued under subsection (a)(1);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>any amount obligated or expended pursuant to provisions made to secure any revenue bond, note, or other obligations issued under subsection (a)(1); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>any amount obligated or expended pursuant to commitments made in connection with the issuance of revenue bonds, notes, or other obligations for repair, maintenance, and capital improvements relating to undertakings financed through any revenue bond, note, or other obligation issued under subsection (a)(1).”; and</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>by adding at the end the following new subsections: <quotedContent> <subsection class="indent0 fontsize10"> <num value="i">“(i)</num> <content>The revenue bonds, notes, or other obligations issued under subsection (a)(1) are not general obligation bonds of the District government and shall not be included in determining the aggregate amount of all outstanding obligations subject to the limitation specified in section 603(b).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="j">“(j)</num> <content>The issuance of revenue bonds, notes, or other obligations by the District where the ultimate obligation to repay such revenue bonds, notes, or other obligations is that of one or more nongovernmental persons or entities may be authorized by resolution of the Council. The issuance of all other revenue bonds, notes, or other obligations by the District shall be authorized by act of the Council.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="k">“(k)</num> <content>During any control period (as defined in section 209 of the District of Columbia Financial Responsibility and Management Assistance Act of 1995), any act or resolution of the Council authorizing the issuance of revenue bonds, notes, or other obligations under subsection (a)(1) shall be submitted to the District of Columbia Financial Responsibility and Management Assistance Authority for certification in accordance with section 204 of that Act. Any certification issued by the Authority during a control period shall be effective for purposes of this subsection for revenue bonds, notes, or other obligations issued pursuant to such act or resolution of the Council whether the revenue bonds, notes, or other obligations are issued during or subsequent to that control period.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="l">“(l)</num> <chapeau>The following provisions of law shall not apply with respect to property acquired, held, and disposed of by the District in accordance with the terms of any lease-purchase financing authorized pursuant to subsection (a)(1):<page identifier="/us/stat/111/776">111 STAT. 776</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>The Act entitled ‘An Act authorizing the sale of certain real estate in the District of Columbia no longer required for public purposes’, approved August 5, 1939 (53 Stat. 1211; DC Code sec. 9–401 et seq.).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>Subchapter III of chapter 13 of title 16, District of Columbia Code.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>Any other provision of District of Columbia law that prohibits or restricts lease-purchase financing.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="m">“(m)</num> <chapeau>For purposes of this section, the following definitions shall apply:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>The term ‘revenue bonds, notes, or other obligations’ means special fund bonds, notes, or other obligations (including refunding bonds, notes, or other obligations) used to borrow money to finance, assist in financing, refinance, or repay, restore or reimburse moneys used for purposes referred to in subsection (a)(1) the principal of and interest, if any, on which are to be paid and secured in the manner described in this section and which are special obligations and to which the full faith and credit of the District of Columbia is not pledged.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>The term ‘District instrumentality means any agency or instrumentality (including an independent agency or instrumentality), authority, commission, board, department, division, office, body, or officer of the District of Columbia government duly established by an act of the Council or by the laws of the United States, whether established before or after the date of enactment of the District of Columbia Bond Financing improvements Act of 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>The term ‘available revenues’ means gross revenues and receipts, other than general fund tax receipts, lawfully available for the purpose and not otherwise exclusively committed to another purpose, including enterprise funds, grants, subsidies, contributions, fees, dedicated taxes and fees, investment income and proceeds of revenue bonds, notes, or other obligations issued under this section.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>The term ‘enterprise fund’ means a fund or account for operations that are financed or operated in a manner similar to private business enterprises, or established so that separate determinations may more readily be made periodically of revenues earned, expenses incurred, or net income for management control, accountability, capital maintenance, public policy, or other purposes.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>The term ‘dedicated taxes and fees’ means taxes and surtaxes, portions thereof, tax increments, or payments in lieu of taxes, and fees that are dedicated pursuant to law to the payment of the debt service on revenue bonds, notes, or other obligations authorized under this section, the provision and maintenance of reserves for that purpose, or the provision of working capital for or the maintenance, repair, reconstruction or improvement of the undertaking to which the revenue bonds, notes, or other obligations relate.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>The term ‘tax increments’ means taxes, other than the special tax provided for in section 481 and pledged to the payment of general obligation indebtedness of the District, allocable to the increase in taxable value of real property or the increase in sales tax receipts, each from a certain date or dates, in prescribed areas, to the extent that such increases <page identifier="/us/stat/111/777">111 STAT. 777</page>are not otherwise exclusively committed to another purpose and as further provided for pursuant to an act of the Council.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> </section> <section> <num value="11509">SEC. 11509.</num> <heading>CONFORMING AMENDMENT.</heading> <content>The fourth sentence of section 446 of the District of Columbia Self-Government and Governmental Reorganization Act (DC Code, sec. 47–304) is amended to read as follows: “Except as provided in section 467(d), section 471(c), section 472(d)(2), section 475(e)(2), section 483(d), and section 490(f), (g), and (h)(3), no amount may be obligated or expended by any officer or employee of the District of Columbia government unless such amount has been approved by Act of Congress, and then only according to such Act.”.</content> </section> </subtitle> <subtitle> <num value="G">Subtitle G—</num><heading>District of Columbia Government Budget</heading> <section> <num value="11601">SEC. 11601.</num> <heading>ELIMINATION OF THE ANNUAL FEDERAL PAYMENT TO THE DISTRICT OF COLUMBIA.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Elimination of Payment</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Title V of the District of Columbia Self-Government and Governmental Reorganization Act (DC Code, sec. 47–3406 et seq.) is hereby repealed.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Clerical amendment</inline>.—</heading><content>The table of contents of such Act is amended by striking the items relating to title V.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Home rule act</inline>.—</heading><chapeau>The District of Columbia Self-Government and Governmental Reorganization Act is amended as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>In section 103(10) (DC Code, sec. 1–202(10)), by striking “<quotedText>the annual Federal payment to the District authorized under title V,</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>In section 483 (DC Code, sec. 47–331.2), by striking subsection (c).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>In section 603(c) (DC Code, sec. 47–313(c)), by striking the fourth sentence.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>In section 603(f)(1)(DC Code, sec. 47–313(0(1)), by striking “<quotedText>(other than the fourth sentence)</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Financial responsibility and management assistance act</inline>.—</heading><chapeau>The District of Columbia Financial Responsibility and Management Assistance Act of 1995 is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking section 205 (DC Code, sec. 47–392.5); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in the table of contents for such Act, by striking the item relating to section 205.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Procurement practices act</inline>.—</heading><content>Section 208(a)(2) of the District of Columbia Procurement Practices Act of 1985 (DC Code, sec. 1–1182.8(a)(2)) is amended—</content></paragraph> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking subparagraph (B);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by redesignating subparagraph (C) as subparagraph (B); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>in subparagraph (B), as so redesignated, by striking “<quotedText>Amounts deposited in the dedicated fund described in subparagraph (B)</quotedText>” and inserting “<quotedText>Amounts appropriated for the Inspector General</quotedText>”.<page identifier="/us/stat/111/778">111 STAT. 778</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">District of columbia revenue act of 1939</inline>.—</heading><chapeau>The District of Columbia Revenue Act of 1939 (DC Code, sec. 473401 et seq.) is amended as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <chapeau>In section 603(b) (as redesignated by section 11402)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>in paragraph (5), by adding “<quotedText>and</quotedText>” at the end;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>in paragraph (6), by striking and” and inserting a period; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>by striking paragraph (7).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>In section 603(c) (as redesignated by section 11402), by amending subparagraph (C) to read as follows: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Applicable limit defined</inline>.—</heading><content>In this paragraph, the ‘applicable limit’ for a fiscal year is equal to 15 percent of the total anticipated revenues of the District government for such fiscal year, as certified by the Mayor at the time of the Mayor’s requisition for an advance.”.</content></subparagraph> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <chapeau>In section 605(b) (as redesignated by section 11402)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by striking paragraph (1) and redesignating paragraphs (2) through (4) as paragraphs (1) through (3);</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>in paragraph (1) (as so redesignated), by striking “<quotedText>OTHER</quotedText>” in the heading;</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>in paragraph (1) (as so redesignated), by striking “<quotedText>If, after</quotedText>” and all that follows through “the Secretary” and inserting “<quotedText>The Secretary</quotedText>”;</content></clause> <clause class="indent3 fontsize10"><num value="iv">(iv)</num> <content>in paragraph (1) (as so redesignated), by striking “<quotedText>to individuals,</quotedText>” and inserting “<quotedText>to individuals (including any Federal contribution authorized to be appropriated pursuant to section 11601(c)(2) of the Balanced Budget Act of 1997),</quotedText>”;</content></clause> <clause class="indent3 fontsize10"><num value="v">(v)</num> <content>in paragraph (2) (as so redesignated), by striking “<quotedText>paragraphs (1) and (2)</quotedText>” and inserting “<quotedText>paragraph (1)</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="vi">(vi)</num> <content>in paragraph (3) (as so redesignated), by striking “<quotedText>(1) through (3)</quotedText>” and inserting “<quotedText>(1) and (2)</quotedText>”.</content></clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Federal Contribution to Operations of Government of Nation’s Capital</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>Congress finds as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Congress has restricted the overall size of the District of Columbia’s economy by limiting the height of buildings in the District and imposing other limitations relating to the Federal presence in the District.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Congress has imposed limitations on the District’s ability to tax income earned in the District of Columbia.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>The unique status of the District of Columbia as the seat of the government of the United States imposes unusual costs and requirements which are not imposed on other jurisdictions and many of which are not directly reimbursed by the Federal government.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>These factors play a significant role in causing the relative tax burden on District residents to be greater than the burden on residents in other jurisdictions in the Washington, D.C. metropolitan area and in other cities of comparable size.<page identifier="/us/stat/111/779">111 STAT. 779</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Federal contribution</inline>.—</heading><chapeau>There is authorized to be<sidenote><p class="indent0 firstIndent0 fontsize8">Appropriation authorization.</p></sidenote> appropriated a Federal contribution towards the costs of the operation of the government of the Nation’s capital—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>for fiscal year 1998, $190,000,000; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>for each subsequent fiscal year, such amount as may be necessary for such contribution.</content></subparagraph> <continuation class="indent0 fontsize10">In determining the amount appropriated pursuant to the authorization under this paragraph, Congress shall take into account the findings described in paragraph (1).</continuation> </paragraph> </subsection> </section> <section> <num value="11602">SEC. 11602.</num> <heading>REQUIREMENT THAT THE DISTRICT OF COLUMBIA BALANCE ITS BUDGET IN FY 1098.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 201(c)(1) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995 is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subparagraph (A), by striking “<quotedText>1999</quotedText>” and inserting “<quotedText>1998</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subparagraph (B), by striking “<quotedText>1996, 1997, and 1998,</quotedText>” and inserting “<quotedText>1996 and 1997,</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>Section 603(f) of the District of Columbia Self-Government and Governmental Reorganization Act (DC Code, sec. 47–313(f)) is amended by striking “<quotedText>Act of 1995)—</quotedText>” and all that follows through “(2) the Council” and inserting “<quotedText>Act of 1995), the Council</quotedText>”.</content> </subsection> </section> <section> <num value="11603">SEC. 11603.</num> <heading>PERMITTING EXPEDITED SUBMISSION AND APPROVAL OF CONSENSUS BUDGET AND FINANCIAL PLAN.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>Congress finds the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>The District of Columbia Financial Responsibility and Management Assistance Act (hereafter in this subsection referred to as the “Act”) was structured as to preserve the maximum prerogatives of each branch of elected self-government consistent with returning the District of Columbia to full financial stability and health.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>The Act was intended to eliminate unnecessary bureaucratic barriers and procedures throughout the District government, including the budget process.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Preservation of home rule and self-government are consistent with cooperation between elected officials and the Authority in drawing the annual budget and other matters affecting the District of Columbia government, and are preferable to achieve greater efficiency, communication among the parties, and avoidance of conflict and delay.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 202 of the District of Columbia Financial Responsibility and Management Assistance Act of 1995 is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="i">“(i)</num> <chapeau>Expedited Submission And Approval Of Consensus Budget And Financial Plan.—Notwithstanding any other provision of this section, if the Mayor, the Council, and the Authority jointly develop a financial plan and budget for the fiscal year which meets the requirements applicable under section 201 and which the Mayor, Council, and Authority certify reflects a consensus among them—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>such financial plan and budget shall serve as the budget of the District government for the fiscal year adopted by the Council under section 446 of the District of Columbia Self-Government and Governmental Reorganization Act; and<page identifier="/us/stat/111/780">111 STAT. 780</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the Mayor shall transmit the financial plan and budget to the President and Congress under such section.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (b) shall apply with respect to fiscal years beginning with fiscal year 1998.</content> </subsection> </section> <section> <num value="11604">SEC. 11604.</num> <heading>INCREASE IN MAXIMUM AMOUNT OF PERMITTED DISTRICT BORROWING.</heading> <content>Section 603(b) of the District of Columbia Self-Government and Governmental Reorganization Act (DC Code, sec. 47–313(b)) is amended by striking “<quotedText>14 per centum</quotedText>” each place it appears in paragraph (1) and paragraph (3) and inserting “<quotedText>17 percent</quotedText>”.</content> </section> </subtitle> <subtitle> <num value="H">Subtitle H—</num><heading>Miscellaneous Provisions</heading> <chapter> <num value="1">CHAPTER 1—</num><heading>REGULATORY REFORM IN THE DISTRICT OF COLUMBIA</heading> <section> <num value="11701">SEC. 11701.</num> <heading>REVIEW AND REVISION OF REGULATIONS AND PERMIT AND APPLICATION PROCESSES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Review of Current Regulations by Authority</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Not later than 6 months after the date of the enactment of this title, the District of Columbia Financial Responsibility and Management Assistance Authority shall complete a review of regulations of the District of Columbia in effect as of the date of the enactment of this title and analyze the extent to which such regulations unnecessarily and inappropriately impair economic development in the District of Columbia and the financial stability and management efficiency of the District of Columbia government. To the greatest extent possible, such review shall take into account the work and recommendations of the Business Regulatory Reform Commission pursuant to the Business Regulatory <page identifier="/us/stat/111/781">111 STAT. 781</page>Reform Commission Act of 1994 (DC Code, sec. 2–4101 et seq.) and other existing and ongoing public and private regulatory reform efforts. The Authority shall transmit the findings of its review to the Mayor, Council, and Congress.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Revision</inline>.—</heading><content>Based on the review conducted under paragraph (1) and taking into account actions by the Council and the Executive Branch of the District of Columbia government, the Authority shall take such additional actions as it considers appropriate to repeal or revise the regulations of the District of Columbia, in accordance with (and subject to the terms and conditions described in) section 207 of the District of Columbia Financial Responsibility and Management Assistance Act of 1995.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Survey and Revision of Permit and Application Processes</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Not later than 6 months after the date of the enactment of this title, the Authority shall complete a review of the current processes of the District of Columbia for obtaining permits and applications of all types and analyze the extent to which such processes and their completion times vary from the processes applicable in other jurisdictions. To the greatest extent possible, such review shall take into account the work and recommendations of the Business Regulatory Reform Commission pursuant to the Business Regulatory Reform Commission Act of 1994 (DC Code, sec. 2–4101 et seq.) and other existing and ongoing public and private regulatory reform efforts. The Authority shall transmit the findings of its review to the Mayor, Council, and Congress.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Revision</inline>.—</heading><content>Based on the review conducted under paragraph (1) and taking into account actions by the Council and the Executive Branch of the District of Columbia government, the Authority shall take such additional actions as it considers appropriate to repeal or revise the permit and application processes (and their completion times) of the District of Columbia, in accordance with (and subject to the terms and conditions described in) section 207 of the District of Columbia Financial Responsibility and Management Assistance Act of 1995. In carrying out such repeals or revisions, the Authority shall seek to ensure that the average time required to obtain a permit or application from the District of Columbia is consistent with the average time for other similar jurisdictions in the United States.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Reports to Congress</inline>.—</heading><content>Upon the expiration of the 6-month period which begins on the date of the enactment of this title and on a quarterly basis thereafter, the Authority shall submit a report to Congress describing the steps taken to carry out the requirements of this section and the effectiveness of the regulatory, permit, and application processes of the District of Columbia.</content> </subsection> </section> <section> <num value="11702">SEC. 11702.</num> <heading>REPEAL OF CLEAN AIR COMPLIANCE FEE ACT OF 1994.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Repeal</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Effective March 21, 1995, the Clean Air<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> Compliance Fee Act of 1994 is hereby repealed (DC Code, sec. 47–2731 et seq.), except as provided in subsection (b).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conforming amendment</inline>.—</heading><content>Section 2(b)(2) of the Stable and Reliable Source of Revenues for WMATA Act of 1982 (DC Code, sec. 1–2466(b)(2)) is amended by striking subparagraph (H).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Exception for Provisions Exempting Delivery of Newspapers From Application of Certain Taxes</inline>.—</heading><content>Subsection (a) shall not apply to section 14 of the Clean Air Compliance Fee Act of 1994.</content> </subsection> </section> <section> <num value="11703">SEC. 11703.</num> <heading>REPEAL REQUIREMENT FOR CONGRESSIONAL AUTHORIZATION OF CERTAIN MERGERS INVOLVING DISTRICT OF COLUMBIA PUBLIC UTILITY CORPORATIONS.</heading> <content>Section 11 of the Act of March 4, 1913 (37 Stat. 1006; DC Code, sec. 43–802) is hereby repealed.</content> </section> <section> <num value="11704">SEC. 11704.</num> <heading>EXEMPTION OF CERTAIN CONTRACTS FROM COUNCIL REVIEW.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 451 of the District of Columbia Self-Government and Governmental Reorganization Act (sec. 1–1130, D.C. Code) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Exemption for Certain Contracts</inline>.—</heading><chapeau>The requirements of this section shall not apply with respect to any of the following contracts:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>Any contract entered into by the Washington Convention Center Authority for preconstruction activities, project management, design, or construction.<page identifier="/us/stat/111/782">111 STAT. 782</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>Any contract entered into by the District of Columbia Water and Sewer Authority established pursuant to the Water and Sewer Authority Establishment and Department of Public Works Reorganization Act of 1996, other than contracts for the sale or lease of the Blue Plains Wastewater Treatment Plant.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>At the option of the Council, any contract for a highway improvement project carried out under title 23, United States Code.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall apply with respect to contracts entered into on or after the date of the enactment of this title.</content> </subsection> </section> </chapter> <chapter> <num value="2">CHAPTER 2—</num><heading>OTHER MISCELLANEOUS PROVISIONS</heading> <section> <num value="11711">SEC. 11711.</num> <heading>REVISIONS TO FINANCIAL RESPONSIBILITY AND MANAGEMENT ASSISTANCE ACT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Use of Interest on Accounts of Authority for Benefit of District</inline>.—</heading><content>Section 106 of the District of Columbia Financial Responsibility and Management Assistance Act of 1995 (DC Code, sec. 47–391.6) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Use of Interest on Accounts for District</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Notwithstanding any other provision of this Act, the Authority may transfer or otherwise expend any amounts derived from interest earned on accounts held by the Authority on behalf of the District of Columbia for such purposes as it considers appropriate to promote the economic stability and management efficiency of the District government.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Spending not subject to appropriation by congress</inline>.—</heading><content>Notwithstanding subsection (a)(3), any amounts transferred or otherwise expended pursuant to paragraph (1) may be obligated or expended without approval by Act of Congress.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Appointment of Inspector General</inline>.—</heading><content>Section 303(e)(1) of such Act (DC Code, sec. 1–1182.8 note) is amended by striking “<quotedText>the Authority</quotedText>” and inserting “<quotedText>the Mayor</quotedText>”.</content> </subsection> </section> <section> <num value="11712">SEC. 11712.</num> <heading>COOPERATIVE AGREEMENTS BETWEEN FEDERAL AGENCIES AND METROPOLITAN POLICE DEPARTMENT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Agreements</inline>.—</heading><content>Each covered Federal law enforcement agency may enter into a cooperative agreement with the Metropolitan Police Department of the District of Columbia to assist the Department in carrying out crime prevention and law enforcement activities in the District of Columbia, including taking appropriate action to enforce subsection (e) (except that nothing in such an agreement may be construed to grant authority to the United States to prosecute violations of subsection (e)).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Contents of Agreement</inline>.—</heading><chapeau>An agreement entered into between a covered Federal law enforcement agency and the Metropolitan Police Department pursuant to this section may include agreements relating to—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>sending personnel of the agency on patrol in areas of the District of Columbia which immediately surround the area of the agency’s jurisdiction, and granting personnel of the agency the power to arrest in such areas;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>sharing and donating equipment and supplies with the Metropolitan Police Department;<page identifier="/us/stat/111/783">111 STAT. 783</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>operating on shared radio frequencies with the Metropolitan Police Department;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>permitting personnel of the agency to carry out processing and papering of suspects they arrest in the District of Columbia; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>such other items as the agency and the Metropolitan Police Department may agree to include in the agreement.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Coordination With U.S. Attorney’s Office</inline>.—</heading><content>Agreements entered into pursuant to this section shall be coordinated in advance with the United States Attorney for the District of Columbia.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Covered Federal Law Enforcement Agencies Described</inline>.—</heading><chapeau>In this section, the term “covered Federal law enforcement agency” means any of the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>United States Capitol Police.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>United States Marshals Service.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Library of Congress Police.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>Bureau of Engraving and Printing Police Force.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>Supreme Court Police.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>Amtrak Police Department.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <content>Department of Protective Services, United States Holocaust Museum.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8)</num> <content>Government Printing Office Police.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9)</num> <content>United States Park Police.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10)</num> <content>Bureau of Alcohol, Tobacco, and Firearms.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="11">(11)</num> <content>Drug Enforcement Administration.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="12">(12)</num> <content>Federal Bureau of Investigation.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="13">(13)</num> <content>Criminal Investigation Division, Internal Revenue Service.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="14">(14)</num> <content>Department of the Navy Police Division, Naval District Washington.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="15">(15)</num> <content>Naval Criminal Investigative Service.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="16">(16)</num> <content>11th Security Police Squadron, Bolling Air Force Base.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="17">(17)</num> <content>United States Army Military District of Washington.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="18">(18)</num> <content>United States Customs Service.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="19">(19)</num> <content>Immigration and Naturalization Service.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="20">(20)</num> <content>Postal Inspection Service, United States Postal Service.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="21">(21)</num> <content>Uniformed Division, United States Secret Service.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="22">(22)</num> <content>United States Secret Service.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="23">(23)</num> <content>National Zoological Part Police.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="24">(24)</num> <content>Federal Protective Service, General Services Administration, National Capital Region.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="25">(25)</num> <content>Defense Protective Service, Department of Defense Washington Headquarters Services.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="26">(26)</num> <content>Office of Protective Services, Smithsonian Institution.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="27">(27)</num> <content>Office of Protective Services, National Gallery of Art.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="28">(28)</num> <content>United States Army Criminal Investigation Command, Department of the Army Washington District, 3rd Military Police Group.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="29">(29)</num> <content>Marine Corps Law Enforcement.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="30">(30)</num> <content>Department of State Diplomatic Security.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="31">(31)</num> <content>United States Coast Guard.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="32">(32)</num> <content>United States Postal Police.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Certain Prohibited Activity</inline>.—</heading><chapeau>Effective with respect to conduct occurring on or after the date of the enactment of this title, whoever in the District of Columbia knowingly and willfully obstructs any bridge connecting the District of Columbia and the Commonwealth of Virginia—<page identifier="/us/stat/111/784">111 STAT. 784</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>shall be fined not less than $1,000 and not more than $5,000, and in addition may be imprisoned not more than 30 days; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>if applicable, shall be subject to prosecution by the District of Columbia under the provisions of District law and regulation amended by the Safe Streets Anti-Prostitution Amendment Act of 1996 (D.C. Law 11–130).</content></paragraph> </subsection> </section> <section> <num value="11713">SEC. 11713.</num> <heading>PERMITTING GARNISHMENT OF WAGES OF OFFICERS AND EMPLOYEES OF DISTRICT OF COLUMBIA GOVERNMENT.</heading> <chapeau>Section 2 of D.C. Law 2–14 (DC Code, sec. 1–516) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>After July 25</quotedText>” and inserting “<quotedText>(a) After July 25</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <content>After October 1, 1997, wages salaries, annuities, retirement and disability benefits, and other remuneration based upon employment, or other income owed by, due from, and payable by the government of the District of Columbia to any individual shall be subject to attachment, garnishment, assignment, or withholding in accordance with subchapter III of chapter 5 of title 16 of the District of Columbia Code in the same manner and to the same extent as if the government of the District of Columbia were a private person.”.</content> </subsection> </quotedContent> </content></paragraph> </section> <section> <num value="11714">SEC. 11714.</num> <heading>PERMITTING EXCESS APPROPRIATIONS BY WATER AND SEWER AUTHORITY FOR CAPITAL PROJECTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 445A of the District of Columbia Self-Government and Governmental Reorganization Act (DC Code, sec. 43–1691), as added by section 4(a) of the District of Columbia Water and Sewer Authority Act of 1996, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>The District</quotedText>” and inserting “<quotedText>(a) <inline class="smallCaps">In General</inline>.—The District</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Permitting Expenditure of Excess Revenues for Capital Projects in Excess of Budget</inline>.—</heading><content>Notwithstanding the amount appropriated for the District of Columbia Water and Sewer Authority for capital projects for a fiscal year, if the revenues of the Authority for the year exceed the estimated revenues of the Authority provided in the annual budget of the District of Columbia for the fiscal year, the Authority may obligate or expend an additional amount for capital projects during the year equal to the amount of such excess revenues.”.</content> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>The fourth sentence of section 446 of such Act (DC Code, sec. 47–304), as amended by section 2(c)(2) of the District of Columbia Water and Sewer Authority Act of 1996, is amended by striking “<quotedText>in section 467(d)</quotedText>” and inserting “<quotedText>in section 445A(b), section 467(d)</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply with respect to fiscal years beginning on or after October 1, 1996.</content> </subsection> </section> <section> <num value="11715">SEC. 11715.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t40/s138">40 USC 138</ref>.</p></sidenote> <heading>REQUIRING CERTAIN FEDERAL OFFICIALS TO PROVIDE NOTICE BEFORE CARRYING OUT ACTIVITIES AFFECTING REAL PROPERTY LOCATED IN DISTRICT OF COLUMBIA.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Heads of Federal Agencies</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Except as provided in subsection (d), the head of any Federal agency may not carry out any activity <page identifier="/us/stat/111/785">111 STAT. 785</page>that affects real property located in the District of Columbia unless—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>not later than 60 days before carrying out such activity, the head of the agency provides a notice describing such activity and the property affected to the Administrator of General Services and the Administrator of General Services transmits such notice to the individuals described in subsection (c); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>the head of the agency provides the individuals described in subsection (c) with the opportunity to present oral or written comments on the activity to a representative of the head of the agency before the head of the agency carries out the activity.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Federal agency defined</inline>.—</heading><content>In subsection (a), the term “Federal agency” means an executive department (as defined in section 101 of title 5, United States Code).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Architect of the Capitol</inline>.—</heading><chapeau>Except as provided in subsection (d), the Architect of the Capitol may not carry out any activity that affects real property located in the District of Columbia unless—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>not later than 60 days before carrying out such activity, the Architect provides a notice describing such activity and the property affected to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Environment and Public Works of the Senate and such Committees transmit such notice to the individuals described in subsection (c); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>the Architect provides the individuals described in subsection (c) with the opportunity to present oral or written comments on the activity to a representative of the Architect before the Architect carries out the activity.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Individuals Described</inline>.—</heading><content>The individuals described in this paragraph (with respect to the activity and the real property involved) are the Mayor of the District of Columbia, the Chair of the Council of the District of Columbia, and the Chair of the Advisory Neighborhood Commission (as established pursuant to section 738 of the District of Columbia Self-Government and Governmental Reorganization Act) in whose neighborhood such property is located.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Exception for Emergencies</inline>.—</heading><chapeau>The head of a Federal agency or the Architect of the Capitol may waive the requirements of subsection (a) if the head of the agency or the Architect finds that compliance with the requirements would jeopardize the public safety or the national security interests of the United States, but only if the head of the agency or the Architect—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>certifies such finding and the reasons for such finding to the individuals described in subsection (c) and to Congress; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>at the earliest time practicable, provides such individuals with the notice described in paragraph (1) of subsection (a) or (b) (whichever is applicable) and the opportunity to present comments described in paragraph (2) of subsection (a) or (b).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>Section 1 shall apply to activities carried out after the expiration of the 60-day period that begins on the date of the enactment of this title.<page identifier="/us/stat/111/786">111 STAT. 786</page></content> </subsection> </section> <section> <num value="11716">SEC. 11716.</num> <heading>REPEAL TERM OF DEED OF CONVEYANCE TO CERTAIN HOSPITAL.</heading> <content>Section 2 of the Act of June 6, 1952 (chapter 486; 66 Stat. 288) (DC Code, sec. 32–121) is hereby repealed.</content> </section> <section> <num value="11717">SEC. 11717.</num> <heading>SHORT TITLE OF HOME RULE ACT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 101 of the District of Columbia Self-Government and Governmental Reorganization Act is amended by striking “<quotedText>District of Columbia Self-Government and Governmental Reorganization Act</quotedText>” and inserting “<quotedText>District of Columbia Home Rule Act</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">References in Law</inline>.—</heading><content>Any reference in law or regulation to the District of Columbia Self-Government and Governmental Reorganization Act shall be deemed to be a reference to the District of Columbia Home Rule Act.</content> </subsection> </section> </chapter> <chapter> <num value="3">CHAPTER 3—</num><heading>EFFECTIVE DATE; GENERAL PROVISIONS</heading> <section> <num value="11721">SEC. 11721.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t18/s4246">18 USC 4246 note</ref>.</p></sidenote> <heading>EFFECTIVE DATE.</heading> <content>Except as otherwise provided in this title, the provisions of this title shall take effect on the later of October 1, 1997, or the day the District of Columbia Financial Responsibility and Management Assistance Authority certifies that the financial plan and budget for the District government for fiscal year 1998 meet the requirements of section 201(c)(1) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995, as amended by this title.</content> </section> <section> <num value="11722">SEC. 11722.</num> <heading>TECHNICAL ASSISTANCE.</heading> <content>Any Federal agency (as defined in section 101 of title 31, United States Code) may provide, at the discretion of the head of the agency, technical assistance to, and training for, personnel of the Government of the District of Columbia. Such assistance shall be limited to assistance that does not interfere with the mission of the agency. The authority provided by this section shall expire three years from the date of enactment of this statute.</content> </section> <section> <num value="11723">SEC. 11723.</num> <heading>LIABILITY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">District of Columbia</inline>.—</heading><content>The District of Columbia shall defend any civil action or proceeding pending on the effective date of this title in any court or other official municipal, state, or federal forum against the District of Columbia or its officers, employees, or agents, and shall assume any liability resulting from such an action or proceeding.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">State Justice Institute</inline>.—</heading><content>The State Justice Institute shall not be liable for damages or equitable relief on the basis of the activities or operations of any federal or District of Columbia agency which receives funds through the State Justice Institute pursuant to this title.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">United States</inline>.—</heading><chapeau>The United States, its officers, employees, and agents, and its agencies shall not—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>be responsible for the payment of any judgments, liabilities or costs resulting from any action or proceeding against the District of Columbia or its agencies, officers, employees, or agents;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>be subject to liability in any case on the basis of the activities of the District of Columbia or its agencies, officers, employees, or agents; or<page identifier="/us/stat/111/787">111 STAT. 787</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>be subject to liability in any case under section 1979 of the Revised Statutes (42 U.S.C. 1983).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Limitations</inline>.—</heading><content>Nothing in this section shall be construed as a waiver of sovereign immunity, or as limiting any other defense or immunity that would otherwise be available to the United States, the District of Columbia, their agencies, officers, employees, or agents.</content> </subsection> </section> </chapter> </subtitle> Approved August 5, 1997.
LEGISLATIVE HISTORY—H.R. 2015 (S. 947): HOUSE REPORTS: Nos. 105–149 (Comm. on the Budget) and 105–217 (Comm. of Conference). CONGRESSIONAL RECORD, Vol. 143 (1997):

June 25, considered and passed House; considered and passed Senate, amended, in lieu of S. 947.

July 30, House agreed to conference report. Senate considered conference report.

July 31, Senate agreed to conference report.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):

Aug. 5, Presidential remarks and statement.

Aug. 11, Presidential remarks and special message on line item veto.

 FEDERAL REGISTER, Vol. 62 (1997):

Aug. 12, Cancellation of item pursuant to Line Item Veto Act.

 Public Law 105–34: To provide for reconciliation pursuant to subsections (b)(2) and (d) of section 105 of the concurrent resolution on the budget for fiscal year 1998. Public Law34 Public Law 105–34 111 Stat. 788 1997-08-05 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 788

*Note: This law contains items that were cancelled by the President pursuant to the Line Item Veto Act. For more information, see the Federal Register entry under “LEGISLATIVE HISTORY” at the end of this law.

 Public Law105–34 105th Congress
An Act To provide for reconciliation pursuant to subsections (b)(2) and (d) of section 105 of the concurrent resolution on the budget for fiscal year 1998.

Aug. 5, 1997

[H.R. 2014]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Taxpayer Relief Act of 1997.
SECTION 1. SHORT TITLE; ETC. (a)

26 USC 1 note.

 Short Title.—This Act may be cited as the “Taxpayer Relief Act of 1997”. (b) Amendment of 1986 Code.—Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. (c)

26 USC 15 note.

 Section 15 Not To Apply.—No amendment made by this Act shall be treated as a change in a rate of tax for purposes of section 15 of the Internal Revenue Code of 1986. (d)

26 USC 6654 note.

 Waiver of Estimated Tax Penalties.—No addition to tax shall be made under section 6654 or 6655 of the Internal Revenue Code of 1986 for any period before January 1, 1998, for any payment the due date of which is before January 16, 1998, with respect to any underpayment attributable to such period to the extent such underpayment was created or increased by any provision of this Act. (e) Table of Contents.—The table of contents for this Act is as follows: Sec. 1. TITLE I— Sec. 101. TITLE II— Subtitle A— Sec. 201. Sec. 202. Sec. 203. Subtitle B— Sec. 211. Part II— Sec. 213. Subtitle C— Sec. 221. Sec. 222. Sec. 223. Sec. 224. Sec. 225. Sec. 226. TITLE III— Subtitle A— Sec. 301. Sec. 302. Sec. 303. Sec. 304. Subtitle B— Sec. 311. Sec. 312. Sec. 313. Sec. 314. TITLE IV— Sec. 401. Sec. 402. Sec. 403. TITLE V— Subtitle A— Sec. 501. Sec. 502. Sec. 503. Sec. 504. Sec. 505. Sec. 506. Sec. 507. Sec. 508. Subtitle B— Sec. 511. TITLE VI— Sec. 601. Sec. 602. Sec. 603. Sec. 604. TITLE VII— Sec. 701. TITLE VIII— Sec. 801. TITLE DC— Subtitle A— Sec. 901. Sec. 902. Sec. 903. Sec. 904. Sec. 905. Sec. 906. Sec. 907. Sec. 908. Sec. 909. Sec. 910. Subtitle B— Sec. 911. Sec. 912. Sec. 913. Sec. 914. Sec. 915. Subtitle C— Sec. 921. Sec. 922. Subtitle D— Sec. 931. Sec. 932. Sec. 933. Sec. 934. Sec. 935. Subtitle E— Sec. 941. Subtitle F— Chapter 1— Sec. 951. Chapter 2— Sec. 952. Sec. 953. Sec. 954. Chapter 3— Sec. 955. Sec. 956. Subtitle G— Sec. 961. Sec. 962. Sec. 963. Sec. 964. Sec. 965. Sec. 966. Sec. 967. Sec. 968. Sec. 969. Sec. 970. Sec. 971. Sec. 972. Sec. 973. Sec. 974. Sec. 975. Sec. 976. Sec. 977. Subtitle H— Sec. 981. TITLE X— Subtitle A— Sec. 1001. Sec. 1002. Sec. 1003. Sec. 1004. Sec. 1005. Subtitle B— Sec. 1011. Sec. 1012. Sec. 1013. Sec. 1014. Sec. 1015. Subtitle C— Sec. 1021. Sec. 1022. Sec. 1023. Sec. 1024. Sec. 1025. Sec. 1026. Sec. 1027. Sec. 1028. Subtitle D— Sec. 1031. Sec. 1032. Sec. 1033. Sec. 1034. Sec. 1035. Subtitle E— Sec. 1041. Sec. 1042. Sec. 1051. Sec. 1052. Sec. 1053. Sec. 1054. Sec. 1055. Sec. 1056. Sec. 1057. Subtitle G— Sec. 1061. Sec. 1062. Sec. 1063. Subtitle H— Sec. 1071. Sec. 1072. Sec. 1073. Sec. 1074. Sec. 1075. Subtitle I— Sec. 1081. Sec. 1082. Sec. 1083. Sec. 1084. Sec. 1085. Sec. 1086. Sec. 1087. Sec. 1088. Sec. 1089. Sec. 1090. Sec. 1091. TITLE XI— Subtitle A— Sec. 1101. Sec. 1102. Sec. 1103. Sec. 1104. Sec. 1105. Subtitle B— Sec. 1111. Sec. 1112. Sec. 1113. Subtitle C— Sec. 1121. Sec. 1122. Sec. 1123. Sec. 1124. Subtitle D— Sec. 1131. Subtitle E— Sec. 1141. Sec. 1142. Sec. 1143. Sec. 1144. Sec. 1145. Sec. 1146. Subtitle F— Sec. 1151. Subtitle G— Sec. 1161. Sec. 1162. Sec. 1163. Subtitle H— Sec. 1171. Sec. 1172. Sec. 1173. Sec. 1174. Sec. 1175. TITLE XII— Subtitle A— Sec. 1201. Sec. 1202. Sec. 1203. Sec. 1204. Sec. 1205. Subtitle B— Sec. 1211. Sec. 1212. Sec. 1213. Subtitle C— Part I— Sec. 1221. Sec. 1222. Sec. 1223. Sec. 1224. Sec. 1225. Sec. 1226. Part II— Sec. 1231. Sec. 1232. Sec. 1233. Sec. 1234. Sec. 1235. Sec. 1236. Sec. 1237. Sec. 1238. Sec. 1239. Sec. 1240. Sec. 1241. Sec. 1242. Sec. 1243. Part III— Sec. 1246. Subtitle D— Sec. 1251. Sec. 1252. Sec. 1253. Sec. 1254. Sec. 1255. Sec. 1256. Sec. 1257. Sec. 1258. Sec. 1259. Sec. 1260. Sec. 1261. Sec. 1262. Sec. 1263. Subtitle E— Sec. 1271. Subtitle F— Sec. 1281. Sec. 1282. Sec. 1283. Sec. 1284. Sec. 1285. TITLE XIII— Sec. 1301. Sec. 1302. Sec. 1303. Sec. 1304. Sec. 1305. Sec. 1306. Sec. 1307. Sec. 1308. Sec. 1309. Sec. 1310. Sec. 1311. Sec. 1312. Sec. 1313. Sec. 1314. TITLE XIV— Subtitle A— Part I— Sec. 1401. Sec. 1402. Part II— Sec. 1411. Sec. 1412. Sec. 1413. Sec. 1414. Sec. 1415. Sec. 1416. Sec. 1417. Sec. 1418. Sec. 1419. Sec. 1420. Sec. 1421. Sec. 1422. Part III— Sec. 1431. Sec. 1432. Sec. 1433. Sec. 1434. Sec. 1435. Sec. 1436. Subtitle B— Sec. 1441. Sec. 1442. Sec. 1443. Sec. 1444. Sec. 1445. Subtitle C— Sec. 1451. Sec. 1452. Sec. 1453. Sec. 1454. Subtitle D— Sec. 1461. Sec. 1462. Sec. 1463. TITLE XV— Subtitle A— Sec. 1501. Sec. 1502. Sec. 1503. Sec. 1504. Sec. 1505. Sec. 1506. Sec. 1507. Sec. 1508. Sec. 1509. Sec. 1510. Subtitle B— Sec. 1521. Sec. 1522. Sec. 1523. Sec. 1524. Sec. 1525. Sec. 1526. Sec. 1527. Sec. 1528. Sec. 1529. Sec. 1530. Subtitle C— Sec. 1531. Sec. 1532. Subtitle D— Sec. 1541. TITLE XVI— Sec. 1600. Sec. 1601. Sec. 1602. Sec. 1603. Sec. 1604. TITLE XVII— Sec. 1701.
<num value="I">TITLE I—</num><heading>CHILD TAX CREDIT</heading> <section> <num value="101">SEC. 101.</num> <heading>CHILD TAX CREDIT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subpart A of part IV of subchapter A of chapter 1 (relating to nonrefundable personal credits) is amended by inserting after section 23 the following new section: <quotedContent> <section> <num value="24"> “SEC. 24.</num> <heading>CHILD TAX CREDIT.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Allowance of Credit</inline>.—</heading><content>There shall be allowed as a credit against the tax imposed by this chapter for the taxable year with respect to each qualifying child of the taxpayer an amount equal to $500 ($400 in the case of taxable years beginning in 1998).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Limitation Based on Adjusted Gross Income</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amount of the credit allowable under subsection (a) shall be reduced (but not below zero) by $50 <page identifier="/us/stat/111/797">111 STAT. 797</page>for each $1,000 (or fraction thereof) by which the taxpayer’s modified adjusted gross income exceeds the threshold amount. For purposes of the preceding sentence, the term ‘modified adjusted gross income’ means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Threshold amount</inline>.—</heading><chapeau>For purposes of paragraph (1), the term ‘threshold amount’ means—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>$110,000 in the case of a joint return,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>$75,000 in the case of an individual who is not married, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>$55,000 in the case of a married individual filing a separate return.</content></subparagraph> <continuation class="indent0 fontsize10">For purposes of this paragraph, marital status shall be determined under section 7703.</continuation> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Qualifying Child</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘qualifying child’ means any individual if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the taxpayer is allowed a deduction under section 151 with respect to such individual for the taxable year,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>such individual has not attained the age of 17 as of the close of the calendar year in which the taxable year of the taxpayer begins, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>such individual bears a relationship to the taxpayer described in section 32(c)(3)(B).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Exception for certain noncitizens</inline>.—</heading><content>The term ‘qualifying child’ shall not include any individual who would not be a dependent if the first sentence of section 152(b)(3) were applied without regard to all that follows ‘resident of the United States’.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Additional Credit for Families With 3 or More Children</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of a taxpayer with 3 or more qualifying children for any taxable year, the amount of the credit allowed under this section shall be equal to the greater of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the amount of the credit allowed under this section (without regard to this subsection and after application of the limitation under section 26), or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the alternative credit amount determined under paragraph (2).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Alternative credit amount</inline>.—</heading><content>For purposes of this subsection, the alternative credit amount is the amount of the credit which would be allowed under this section if the limitation under paragraph (3) were applied in lieu of the limitation under section 26.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Limitation</inline>.—</heading><chapeau>The limitation under this paragraph for any taxable year is the limitation under section 26 (without regard to this subsection)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>increased by the taxpayer’s social security taxes for such taxable year, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>reduced by the sum of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the credits allowed under this part other than under subpart C or this section, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the credit allowed under section 32 without regard to subsection (m) thereof.<page identifier="/us/stat/111/798">111 STAT. 798</page></content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Unused credit to be refundable</inline>.—</heading><content>If the amount of the credit under paragraph (1)(B) exceeds the amount of the credit under paragraph (1)(A), such excess shall be treated as a credit to which subpart C applies. The rule of section 32(h) shall apply to such excess.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Social security taxes</inline>.—</heading><chapeau>For purposes of paragraph (3)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘social security taxes’ means, with respect to any taxpayer for any taxable year—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the amount of the taxes imposed by sections 3101 and 3201(a) on amounts received by the taxpayer during the calendar year in which the taxable year begins,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>50 percent of the taxes imposed by section 1401 on the self-employment income of the taxpayer for the taxable year, and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>50 percent of the taxes imposed by section 3211(a)(1) on amounts received by the taxpayer during the calendar year in which the taxable year begins.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Coordination with special refund of social security taxes</inline>.—</heading><content>The term ‘social security taxes’ shall not include any taxes to the extent the taxpayer is entitled to a special refund of such taxes under section 6413(c).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Special rule</inline>.—</heading><content>Any amounts paid pursuant to an agreement under section 3121(1) (relating to agreements entered into by American employers with respect to foreign affiliates) which are equivalent to the taxes referred to in subparagraph (A)(i) shall be treated as taxes referred to in such subparagraph.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Identification Requirement</inline>.—</heading><content>No credit shall be allowed under this section to a taxpayer with respect to any qualifying child unless the taxpayer includes the name and taxpayer identification number of such qualifying child on the return of tax for the taxable year.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Taxable Year Must Be Full Taxable Year</inline>.—</heading><content>Except in the case of a taxable year closed by reason of the death of the taxpayer, no credit shall be allowable under this section in the case of a taxable year covering a period of less than 12 months.”.</content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Supplemental Credit</inline>.—</heading><content>Section 32 is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="m">“(m)</num> <heading><inline class="smallCaps">Supplemental Child Credit</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In the case of a taxpayer with respect to whom a credit is allowed under section 24 for the taxable year, there shall be allowed as a credit under this section an amount equal to the supplemental child credit (if any) determined for such taxpayer for such taxable year under paragraph (2). Such credit shall be in addition to the credit allowed under subsection (a).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Supplemental child credit</inline>.—</heading><chapeau>For purposes of this subsection, the supplemental child credit is an amount equal to the excess (if any) of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the amount determined under section 24(d)(1)(A), over</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the amount determined under section 24(d)(1)(B). The amounts referred to in subparagraphs (A) and (B) shall be determined as if section 24(d) applied to all taxpayers.<page identifier="/us/stat/111/799">111 STAT. 799</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Coordination with section 24</inline>.—</heading><content>The amount of the credit under section 24 shall be reduced by the amount of the credit allowed under this subsection.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <content>High Risk Pools Permitted To Cover Spouses and Dependents of High Risk Individuals.—Paragraph (26) of section 501(c) is amended by adding at the end the following flush sentence: <quotedContent> <p class="indent0 fontsize10">“A spouse and any qualifying child (as defined in section 24(c)) of an individual described in subparagraph (B) (without regard to this sentence) shall be treated as described in subparagraph (B).”.</p> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Section 1324(b)(2) of title 31, United States Code, is amended by inserting before the period at the end “, or enacted by the Taxpayer Relief Act of 1997”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Paragraph (2) of section 6213(g) (relating to the definition of mathematical or clerical errors) is amended by striking “and” at the end of subparagraph (G), by striking the period at the end of subparagraph (H) and inserting , and”, and by inserting after subparagraph (H) the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="I">“(I)</num> <content>an omission of a correct TIN required under section 24(e) (relating to child tax credit) to be included on a return.”.</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>The table of sections for subpart A of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 23 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 24.</designator> <label>Child tax credit.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s24">26 USC 24 note</ref>.</p></sidenote> shall apply to taxable years beginning after December 31, 1997.</content> </subsection> </section> <num value="II">TITLE II—</num><heading>EDUCATION INCENTIVES</heading> <subtitle> <num value="A">Subtitle A—</num><heading>Tax Benefits Relating to Education Expenses</heading> <section> <num value="201">SEC. 201.</num> <heading>HOPE AND LIFETIME LEARNING CREDITS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subpart A of part IV of subchapter A of chapter 1 (relating to nonrefundable personal credits) is amended by inserting after section 25 the following new section: <quotedContent> <section> <num value="25A">“SEC. 25A.</num> <heading>HOPE AND LIFETIME LEARNING CREDITS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Allowance of Credit</inline>.—</heading><chapeau>In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year the amount equal to the sum of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the Hope Scholarship Credit, plus</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the Lifetime Learning Credit.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Hope Scholarship Credit</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Per student credit</inline>.—</heading><chapeau>In the case of any eligible student for whom an election is in effect under this section for any taxable year, the Hope Scholarship Credit is an amount equal to the sum of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>100 percent of so much of the qualified tuition and related expenses paid by the taxpayer during the taxable year (for education furnished to the eligible student <page identifier="/us/stat/111/800">111 STAT. 800</page>during any academic period beginning in such taxable year) as does not exceed $1,000, plus</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>50 percent of such expenses so paid as exceeds $1,000 but does not exceed the applicable limit.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Limitations applicable to hope scholarship credit</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Credit allowed only for 2 taxable years</inline>.—</heading><content>An election to have this section apply with respect to any eligible student for purposes of the Hope Scholarship Credit under subsection (a)(1) may not be made for any taxable year if such an election (by the taxpayer or any other individual) is in effect with respect to such student for any 2 prior taxable years.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Credit allowed for year only if individual is at least 14 time student for portion of year</inline>.—</heading><content>The Hope Scholarship Credit under subsection (a)(1) shall not be allowed for a taxable year with respect to the qualified tuition and related expenses of an individual unless such individual is an eligible student for at least one academic period which begins during such year.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Credit allowed only for first 2 years of postsecondary education</inline>.—</heading><content>The Hope Scholarship Credit under subsection (a)(1) shall not be allowed for a taxable year with respect to the qualified tuition and related expenses of an eligible student if the student has completed (before the beginning of such taxable year) the first 2 years of postsecondary education at an eligible educational institution.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Denial of credit if student convicted of a felony drug offense</inline>.—</heading><content>The Hope Scholarship Credit under subsection (a)(1) shall not be allowed for qualified tuition and related expenses for the enrollment or attendance of a student for any academic period if such student has been convicted of a Federal or State felony offense consisting of the possession or distribution of a controlled substance before the end of the taxable year with or within which such period ends.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Eligible student</inline>.—</heading><chapeau>For purposes of this subsection, the term ‘eligible student’ means, with respect to any academic period, a student who—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>meets the requirements of section 484(a)(1) of the Higher Education Act of 1965 (20 U.S.C. 1091(a)(1)), as in effect on the date of the enactment of this section, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>is carrying at least 14 the normal full-time work load for the course of study the student is pursuing.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Applicable limit</inline>.—</heading><content>For purposes of paragraph (1)(B), the applicable limit for any taxable year is an amount equal to 2 times the dollar amount in effect under paragraph (1)(A) for such taxable year.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Lifetime Learning Credit</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Per taxpayer credit</inline>.—</heading><content>The Lifetime Learning Credit for any taxpayer for any taxable year is an amount equal to 20 percent of so much of the qualified tuition and related expenses paid by the taxpayer during the taxable year (for education furnished during any academic period beginning in <page identifier="/us/stat/111/801">111 STAT. 801</page>such taxable year) as does not exceed $10,000 ($5,000 in the case of taxable years beginning before January 1, 2003).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Special rules for determining expenses</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Coordination with hope scholarship</inline>.—</heading><content>The qualified tuition and related expenses with respect to an individual who is an eligible student for whom a Hope Scholarship Credit under subsection (a)(1) is allowed for the taxable year shall not be taken into account under this subsection.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Expenses eligible for lifetime learning credit</inline>.—</heading><content>For purposes of paragraph (1), qualified tuition and related expenses shall include expenses described in subsection (f)(1) with respect to any course of instruction at an eligible educational institution to acquire or improve job skills of the individual.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Limitation Based on Modified Adjusted Gross Income</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amount which would (but for this subsection) be taken into account under subsection (a) for the taxable year shall be reduced (but not below zero) by the amount determined under paragraph (2).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Amount of reduction</inline>.—</heading><chapeau>The amount determined under this paragraph is the amount which bears the same ratio to the amount which would be so taken into account as—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>the excess of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <chapeau>the taxpayer’s modified adjusted gross income for such taxable year, over</chapeau></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>$40,000 ($80,000 in the case of a joint return), bears to</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>$10,000 ($20,000 in the case of a joint return).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Modified adjusted gross income</inline>.—</heading><content>The term ‘modified adjusted gross income’ means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Election To Have Section Apply</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>No credit shall be allowed under subsection (a) for a taxable year with respect to the qualified tuition and related expenses of an individual unless the taxpayer elects to have this section apply with respect to such individual for such year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Coordination with exclusions</inline>.—</heading><content>An election under this subsection shall not take effect with respect to an individual for any taxable year if any portion or any distribution during such taxable year from an education individual retirement account is excluded from gross income under section 530(d)(2).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Qualified tuition and related expenses</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘qualified tuition and related expenses’ means tuition and fees required for the enrollment or attendance of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the taxpayer,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the taxpayer’s spouse, or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>any dependent of the taxpayer with respect to whom the taxpayer is allowed a deduction under section 151, <page identifier="/us/stat/111/802">111 STAT. 802</page>at an eligible educational institution for courses of instruction of such individual at such institution.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Exception for education involving sports, etc</inline>.—</heading><content>Such term does not include expenses with respect to any course or other education involving sports, games, or hobbies, unless such course or other education is part of the individual’s degree program.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Exception for nonacademic fees</inline>.—</heading><content>Such term does not include student activity fees, athletic fees, insurance expenses, or other expenses unrelated to an individual’s academic course of instruction.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Eligible educational institution</inline>.—</heading><chapeau>The term ‘eligible educational institution’ means an institution—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>which is described in section 481 of the Higher Education Act of 1965 (20 U.S.C. 1088), as in effect on the date of the enactment of this section, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>which is eligible to participate in a program under title IV of such Act.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Special Rules</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Identification requirement</inline>.—</heading><content>No credit shall be allowed under subsection (a) to a taxpayer with respect to the qualified tuition and related expenses of an individual unless the taxpayer includes the name and taxpayer identification number of such individual on the return of tax for the taxable year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Adjustment for certain scholarships, etc</inline>.—</heading><chapeau>The amount of qualified tuition and related expenses otherwise taken into account under subsection (a) with respect to an individual for an academic period shall be reduced (before the application of subsections (b), (c), and (d)) by the sum of any amounts paid for the benefit of such individual which are allocable to such period as—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>a qualified scholarship which is excludable from gross income under section 117,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>an educational assistance allowance under chapter 30, 31, 32, 34, or 35 of title 38, United States Code, or under chapter 1606 of title 10, United States Code, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>a payment (other than a gift, bequest, devise, or inheritance within the meaning of section 102(a)) for such individual’s educational expenses, or attributable to such individual’s enrollment at an eligible educational institution, which is excludable from gross income under any law of the United States.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <chapeau>Treatment of expenses paid by dependent.—If a deduction under section 151 with respect to an individual is allowed to another taxpayer for a taxable year beginning in the calendar year in which such individual’s taxable year begins—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>no credit shall be allowed under subsection (a) to such individual for such individual’s taxable year, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>qualified tuition and related expenses paid by such individual during such individual’s taxable year shall be treated for purposes of this section as paid by such other taxpayer.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Treatment of certain prepayments</inline>.—</heading><content>If qualified tuition and related expenses are paid by the taxpayer during a taxable year for an academic period which begins during <page identifier="/us/stat/111/803">111 STAT. 803</page>the first 3 months following such taxable year, such academic period shall be treated for purposes of this section as beginning during such taxable year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Denial of double benefit</inline>.—</heading><content>No credit shall be allowed under this section for any expense for which a deduction is allowed under any other provision of this chapter.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">No credit for married individuals filing separate returns</inline>.—</heading><content>If the taxpayer is a married individual (within the meaning of section 7703), this section shall apply only if the taxpayer and the taxpayer’s spouse file a joint return for the taxable year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Nonresident aliens</inline>.—</heading><content>If the taxpayer is a nonresident alien individual for any portion of the taxable year, this section shall apply only if such individual is treated as a resident alien of the United States for purposes of this chapter by reason of an election under subsection (g) or (h) of section 6013.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Inflation Adjustments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Dollar limitation on amount of credit</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of a taxable year beginning after 2001, each of the $1,000 amounts under subsection (b)(1) shall be increased by an amount equal to—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>such dollar amount, multiplied by</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 2000’ for ‘calendar year 1992’ in subparagraph (B) thereof.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Rounding</inline>.—</heading><content>If any amount as adjusted under subparagraph (A) is not a multiple of $100, such amount shall be rounded to the next lowest multiple of $100.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Income limits</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of a taxable year beginning after 2001, the $40,000 and $80,000 amounts in subsection (d)(2) shall each be increased by an amount equal to—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>such dollar amount, multiplied by</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 2000’ for ‘calendar year 1992’ in subparagraph (B) thereof.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Rounding</inline>.—</heading><content>If any amount as adjusted under subparagraph (A) is not a multiple of $1,000, such amount shall be rounded to the next lowest multiple of $1,000.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="i">“(i)</num> <heading><inline class="smallCaps">Regulations</inline>.—</heading><content>The Secretary may prescribe such regulations as may be necessary or appropriate to carry out this section, including regulations providing for a recapture of the credit allowed under this section in cases where there is a refund in a subsequent taxable year of any amount which was taken into account in determining the amount of such credit.”.</content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Extension of Procedures Applicable to Mathematical or Clerical Errors</inline>.—</heading><content>Paragraph (2) of section 6213(g) (relating to the definition of mathematical or clerical errors), as amended by section 101, is amended by striking “<quotedText>and</quotedText>” at the end of subparagraph (H), by striking the period at the end of subparagraph (I) <page identifier="/us/stat/111/804">111 STAT. 804</page>and inserting “<quotedText>, and</quotedText>”, and by inserting after subparagraph (I) the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="J">“(J)</num> <content>an omission of a correct TIN required under section 25A(g)(1) (relating to higher education tuition and related expenses) to be included on a return.”.</content></subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Returns Relating to Tuition and Related Expenses</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subpart B of part III of subchapter A of chapter 61 (relating to information concerning transactions with other persons) is amended by inserting after section 6050R the following new section: <quotedContent> <section> <num value="6050S">“SEC. 6050S.</num> <heading>RETURNS RELATING TO HIGHER EDUCATION TUITION AND RELATED EXPENSES.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Any person—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>which is an eligible educational institution which receives payments for qualified tuition and related expenses with respect to any individual for any calendar year, or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>which is engaged in a trade or business and which, in the course of such trade or business, makes payments during any calendar year to any individual which constitute reimbursements or refunds (or similar amounts) of qualified tuition and related expenses of such individual,</content></paragraph> <continuation class="indent0 fontsize10">shall make the return described in subsection (b) with respect to the individual at such time as the Secretary may by regulations prescribe.</continuation> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Form and Manner of Returns</inline>.—</heading><chapeau>A return is described in this subsection if such return—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>is in such form as the Secretary may prescribe,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <chapeau>contains—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the name, address, and TIN of the individual with respect to whom payments described in subsection (a) were received from (or were paid to),</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the name, address, and TIN of any individual certified by the individual described in subparagraph (A) as the taxpayer who will claim the individual as a dependent for purposes of the deduction allowable under section 151 for any taxable year ending with or within the calendar year, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <chapeau>the—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>aggregate amount of payments for qualified tuition and related expenses received with respect to the individual described in subparagraph (A) during the calendar year, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>aggregate amount of reimbursements or refunds (or similar amounts) paid to such individual during the calendar year, and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>such other information as the Secretary may prescribe.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Application to Governmental Units</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>a governmental unit or any agency or instrumentality thereof shall be treated as a person, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>any return required under subsection (a) by such governmental entity shall be made by the officer or employee appropriately designated for the purpose of making such return.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Statements To Be Furnished to Individuals With Respect to Whom Information Is Required</inline>.—</heading><chapeau>Every person <page identifier="/us/stat/111/805">111 STAT. 805</page>required to make a return under subsection (a) shall furnish to each individual whose name is required to be set forth in such return under subparagraph (A) or (B) of subsection (b)(2) a written statement showing—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the name, address, and phone number of the information contact of the person required to make such return, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the aggregate amounts described in subparagraph (C) of subsection (d)(2).</content></paragraph> <continuation class="indent0 fontsize10">The written statement required under the preceding sentence shall be furnished on or before January 31 of the year following the calendar year for which the return under subsection (a) was required to be made.</continuation> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><content>For purposes of this section, the terms ‘eligible educational institution’ and ‘qualified tuition and related expenses’ have the meanings given such terms by section 25A.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Returns Which Would Be Required To Be Made by 2 or More Persons</inline>.—</heading><content>Except to the extent provided in regulations prescribed by the Secretary, in the case of any amount received by any person on behalf of another person, only the person first receiving such amount shall be required to make the return under subsection (a).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Regulations</inline>.—</heading><content>The Secretary shall prescribe such regulations as may be necessary to carry out the provisions of this section. No penalties shall be imposed under part II of subchapter B of chapter 68 with respect to any return or statement required under this section until such time as such regulations are issued.”.</content> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Assessable penalties</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Subparagraph (B) of section 6724(d)(1) (relating to definitions) is amended by redesignating clauses (ix) through (xiv) as clauses (x) through (xv), respectively, and by inserting after clause (viii) the following new clause: <quotedContent> <clause class="indent3 fontsize10"><num value="ix">“(ix)</num> <content>section 6050S (relating to returns relating to payments for qualified tuition and related expenses),”.</content></clause> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B)</num> <content>Paragraph (2) of section 6724(d) is amended by striking “<quotedText>or</quotedText>” at the end of the next to last subparagraph, by striking the period at the end of the last subparagraph and inserting “<quotedText>, or</quotedText>”, and by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="Z">“(Z)</num> <content>section 6050S(d) (relating to returns relating to qualified tuition and related expenses).”.</content></subparagraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Clerical amendment</inline>.—</heading><content>The table of sections for subpart B of part III of subchapter A of chapter 61 is amended by inserting after the item relating to section 6050R the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 6050S.</designator> <label>Returns relating to higher education tuition and related expenses.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Coordination With Section 135</inline>.—</heading><content>Subsection (d) of section 135 is amended by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively, and by inserting after paragraph (1) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>Coordination with higher education credit.—The amount of the qualified higher education expenses otherwise taken into account under subsection (a) with respect to the education of an individual shall be reduced (before the application of subsection (b)) by the amount of such expenses which are taken into account in determining the credit allowable <page identifier="/us/stat/111/806">111 STAT. 806</page>to the taxpayer or any other person under section 25A with respect to such expenses.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections for subpart A of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 25 the following new item: <quotedContent> <referenceItem role="section"><designator>“Sec. 25A.</designator> <label>Higher education tuition and related expenses.”.</label></referenceItem> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s25A">26 USC 25A note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendments made by this section shall apply to expenses paid after December 31, 1997 (in taxable years ending after such date), for education furnished in academic periods beginning after such date.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Lifetime learning credit</inline>.—</heading><content>Section 25A(a)(2) of the Internal Revenue Code of 1986 shall apply to expenses paid after June 30, 1998 (in taxable years ending after such date), for education furnished in academic periods beginning after such dates.</content></paragraph> </subsection> </section> <section> <num value="202">SEC. 202.</num> <heading>DEDUCTION FOR INTEREST ON EDUCATION LOANS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Part VII of subchapter B of chapter 1 (relating to additional itemized deductions for individuals) is amended by redesignating section 221 as section 222 and by inserting after section 220 the following new section: <quotedContent> <section> <num value="221">“SEC. 221.</num> <heading>INTEREST ON EDUCATION LOANS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Allowance of Deduction</inline>.—</heading><content>In the case of an individual, there shall be allowed as a deduction for the taxable year an amount equal to the interest paid by the taxpayer during the taxable year on any qualified education loan.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Maximum Deduction</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in paragraph (2), the deduction allowed by subsection (a) for the taxable year shall not exceed the amount determined in accordance with the following table: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <thead> <tr> <th style="text-align:left"><b xmlns="http://schemas.gpo.gov/xml/uslm">“In the case of taxable years beginning in:</b></th> <th style="text-align:right"><b xmlns="http://schemas.gpo.gov/xml/uslm">The dollar amount is:</b></th> </tr> </thead> <tbody> <tr> <td style="text-align:left" leaders="yes">1998</td> <td style="text-align:right">$1,000</td> </tr> <tr> <td style="text-align:left" leaders="yes">1999</td> <td style="text-align:right">$1,500</td> </tr> <tr> <td style="text-align:left" leaders="yes">2000</td> <td style="text-align:right">$2,000</td> </tr> <tr> <td style="text-align:left" leaders="yes">2001 or thereafter</td> <td style="text-align:right">$2,500.00</td> </tr> </tbody> </table> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Limitation based on modified adjusted gross income</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amount which would (but for this paragraph) be allowable as a deduction under this section shall be reduced (but not below zero) by the amount determined under subparagraph (B).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Amount of reduction</inline>.—</heading><chapeau>The amount determined under this subparagraph is the amount which bears the same ratio to the amount which would be so taken into account as—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <chapeau>the excess of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the taxpayer’s modified adjusted gross income for such taxable year, over</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>$40,000 ($60,000 in the case of a joint return), bears to</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>$15,000.<page identifier="/us/stat/111/807">111 STAT. 807</page></content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Modified adjusted gross income</inline>.—</heading><chapeau>The term ‘modified adjusted gross income’ means adjusted gross income determined—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>without regard to this section and sections 135, 137, 911, 931, and 933, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>after application of sections 86, 219, and 469. For purposes of sections 86, 135, 137, 219, and 469, adjusted gross income shall be determined without regard to the deduction allowed under this section.</content></clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Dependents Not Eligible for Deduction</inline>.—</heading><content>No deduction shall be allowed by this section to an individual for the taxable year if a deduction under section 151 with respect to such individual is allowed to another taxpayer for the taxable year beginning in the calendar year in which such individual’s taxable year begins.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Limit on Period Deduction Allowed</inline>.—</heading><content>A deduction shall be allowed under this section only with respect to interest paid on any qualified education loan during the first 60 months (whether or not consecutive) in which interest payments are required. For purposes of this paragraph, any loan and all refinancings of such loan shall be treated as 1 loan.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Qualified education loan</inline>.—</heading><chapeau>The term ‘qualified education loan’ means any indebtedness incurred to pay qualified higher education expenses—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>which are incurred on behalf of the taxpayer, the taxpayer’s spouse, or any dependent of the taxpayer as of the time the indebtedness was incurred,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>which are paid or incurred within a reasonable period of time before or after the indebtedness is incurred, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>which are attributable to education furnished during a period during which the recipient was an eligible student.</content></subparagraph> <continuation class="indent0 fontsize10">Such term includes indebtedness used to refinance indebtedness which qualifies as a qualified education loan. The term ‘qualified education loan’ shall not include any indebtedness owed to a person who is related (within the meaning of section 267(b) or 707(b)(1)) to the taxpayer.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Qualified higher education expenses</inline>.—</heading><chapeau>The term ‘qualified higher education expenses’ means the cost of attendance (as defined in section 472 of the Higher Education Act of 1965, 20 U.S.C. 108711, as in effect on the day before the date of the enactment of this Act) at an eligible educational institution, reduced by the sum of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the amount excluded from gross income under section 127, 135, or 530 by reason of such expenses, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the amount of any scholarship, allowance, or payment described in section 25A(g)(2).</content></subparagraph> <continuation class="indent0 fontsize10">For purposes of the preceding sentence, the term ‘eligible educational institution’ has the same meaning given such term by section 25A(f)(2), except that such term shall also include an institution conducting an internship or residency program leading to a degree or certificate awarded by an institution of higher education, a hospital, or a health care facility which offers postgraduate training.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Eligible student</inline>.—</heading><content>The term ‘eligible student’ has the meaning given such term by section 25A(b)(3).<page identifier="/us/stat/111/808">111 STAT. 808</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Dependent</inline>.—</heading><content>The term ‘dependent’ has the meaning given such term by section 152.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Special Rules</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>Denial of double benefit.—No deduction shall be allowed under this section for any amount for which a deduction is allowable under any other provision of this chapter.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Married couples must file joint return</inline>.—</heading><content>If the taxpayer is married at the close of the taxable year, the deduction shall be allowed under subsection (a) only if the taxpayer and the taxpayer’s spouse file a joint return for the taxable year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Marital status</inline>.—</heading><content>Marital status shall be determined in accordance with section 7703.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Inflation Adjustments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of a taxable year beginning after 2002, the $40,000 and $60,000 amounts in subsection (b)(2) shall each be increased by an amount equal to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>such dollar amount, multiplied by</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 2001’ for ‘calendar year 1992’ in subparagraph (B) thereof.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Rounding</inline>.—</heading><content>If any amount as adjusted under paragraph (1) is not a multiple of $5,000, such amount shall be rounded to the next lowest multiple of $5,000.”.</content></paragraph> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Deduction Allowed Whether or Not Taxpayer Itemizes Other Deductions</inline>.—</heading><content>Subsection (a) of section 62 is amended by inserting after paragraph (16) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="17">“(17)</num> <content>Interest on education loans.—The deduction allowed by section 221.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Reporting Requirement</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>—</heading><content>Section 6050S(a)(2) (relating to returns relating to higher education tuition and related expenses) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <chapeau>which is engaged in a trade or business and which, in the course of such trade or business—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>makes payments during any calendar year to any individual which constitutes reimbursements or refunds (or similar amounts) of qualified tuition and related expenses of such individual, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>except as provided in regulations, receives from any individual interest aggregating $600 or more for any calendar year on 1 or more qualified education loans,”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Information</inline>.—</heading><chapeau>Section 6050S(b)(2) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by inserting “<quotedText>or interest</quotedText>” after “payments” in subparagraph (A), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in subparagraph (C), by striking “<quotedText>and</quotedText>” at the end of clause (i), by inserting “<quotedText>and</quotedText>” at the end of clause (ii), and by inserting after clause (ii) the following: <quotedContent> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>aggregate amount of interest received for the calendar year from such individual,”.</content></clause> </quotedContent> </content></subparagraph> </paragraph> <subparagraph class="indent2 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Definition</inline>.—</heading><content>Section 6050S(e) is amended by inserting “<quotedText>, and except as provided in regulations, the term ‘qualified education loan’ has the meaning given such term by section 221(e)(1)” after “section 25A</quotedText>”.<page identifier="/us/stat/111/809">111 STAT. 809</page></content></subparagraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections for part VII of subchapter B of chapter 1 is amended by striking the last item and inserting the following new items: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 221.</designator> <label>Interest on education loans.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 222.</designator> <label>Cross reference.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><chapeau>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s62">26 USC 62 note</ref>.</p></sidenote> shall apply to any qualified education loan (as defined in section 221(e)(1) of the Internal Revenue Code of 1986, as added by this section) incurred on, before, or after the date of the enactment of this Act, but only with respect to—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>any loan interest payment due and paid after December 31, 1997, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>the portion of the 60-month period referred to in section 221(d) of the Internal Revenue Code of 1986 (as added by this section) after December 31, 1997.</content></paragraph> </subsection> </section> <section> <num value="203">SEC. 203.</num> <heading>PENALTY-FREE WITHDRAWALS FROM INDIVIDUAL RETIREMENT PLANS FOR HIGHER EDUCATION EXPENSES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Paragraph (2) of section 72(t) (relating to exceptions to 10-percent additional tax on early distributions from qualified retirement plans) is amended by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Distributions from individual retirement plans for higher education expenses</inline>.—</heading><content>Distributions to an individual from an individual retirement plan to the extent such distributions do not exceed the qualified higher education expenses (as defined in paragraph (7)) of the taxpayer for the taxable year. Distributions shall not be taken into account under the preceding sentence if such distributions are described in subparagraph (A), (C), or (D) or to the extent paragraph (1) does not apply to such distributions by reason of subparagraph (B).”.</content></subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Definition</inline>.—</heading><content>Section 72(t) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Qualified higher education expenses</inline>.—</heading><chapeau>For purposes of paragraph (2)(E)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘qualified higher education expenses’ means qualified higher education expenses (as defined in section 529(e)(3)) for education furnished to—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the taxpayer,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the taxpayer’s spouse, or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>any child (as defined in section 151(c)(3)) or grandchild of the taxpayer or the taxpayer’s spouse, at an eligible educational institution (as defined in section 529(e)(5)).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Coordination with other benefits.—The amount of qualified higher education expenses for any taxable year shall be reduced as provided in section 25A(g)(2).”.</content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s72">26 USC 72 note</ref>.</p></sidenote> shall apply to distributions after December 31, 1997, with respect to expenses paid after such date (in taxable years ending after such date), for education furnished in academic periods beginning after such date.<page identifier="/us/stat/111/810">111 STAT. 810</page></content> </subsection> </section> </subtitle> <subtitle> <num value="B">Subtitle B—</num><heading>Expanded Education Investment Savings Opportunities</heading> <part> <num value="I">PART I—</num><heading>QUALIFIED TUITION PROGRAMS</heading> <section> <num value="211">SEC. 211.</num> <heading>MODIFICATIONS OF QUALIFIED STATE TUITION PROGRAMS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Qualified Higher Education Expenses To Include Room and Board</inline>.—</heading><content>Paragraph (3) of section 529(e) (defining qualified higher education expenses) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Qualified higher education expenses</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The term ‘qualified higher education expenses’ means tuition, fees, books, supplies, and equipment required for the enrollment or attendance of a designated beneficiary at an eligible educational institution.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Room and board included for students under guaranteed plans who are at least half-time</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In the case of an individual who is an eligible student (as defined in section 25A(b)(3)) for any academic period, such term shall also include reasonable costs for such period (as determined under the qualified State tuition program) incurred by the designated beneficiary for room and board while attending such institution. For purposes of subsection (b)(7), a designated beneficiary shall be treated as meeting the requirements of this clause.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Limitation</inline>.—</heading><content>The amount treated as qualified higher education expenses by reason of the preceding sentence shall not exceed the minimum amount (applicable to the student) included for room and board for such period in the cost of attendance (as defined in section 472 of the Higher Education Act of 1965, 20 U.S.C. 108711, as in effect on the date of the enactment of this paragraph) for the eligible educational institution for such period.”.</content></clause> </subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Additional Modifications</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Member of family</inline>.—</heading><content>Paragraph (2) of section 529(e) (relating to other definitions and special rules) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Member of family</inline>.—</heading><chapeau>The term ‘member of the family’ means—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>an individual who bears a relationship to another individual which is a relationship described in paragraphs (1) through (8) of section 152(a), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the spouse of any individual described in subparagraph (A).”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Eligible educational institution</inline>.—</heading><content>Section 529(e) is amended by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Eligible educational institution</inline>.—</heading><chapeau>The term ‘eligible educational institution’ means an institution—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>which is described in section 481 of the Higher Education Act of 1965 (20 U.S.C. 1088), as in effect on the date of the enactment of this paragraph, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>which is eligible to participate in a program under title IV of such Act.”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Estate and gift tax treatment</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">Gift tax treatment</inline>.—<page identifier="/us/stat/111/811">111 STAT. 811</page></heading> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>Paragraph (2) of section 529(c) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Gift tax treatment of contributions</inline>.—</heading><chapeau>For purposes of chapters 12 and 13—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Any contribution to a qualified tuition program on behalf of any designated beneficiary—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>shall be treated as a completed gift to such beneficiary which is not a future interest in property, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>shall not be treated as a qualified transfer under section 2503(e).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Treatment of excess contributions</inline>.—</heading><content>If the aggregate amount of contributions described in subparagraph (A) during the calendar year by a donor exceeds the limitation for such year under section 2503(b), such aggregate amount shall, at the election of the donor, be taken into account for purposes of such section ratably over the 5-year period beginning with such calendar year.”.</content></subparagraph> </paragraph> </quotedContent> </content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>Paragraph (5) of section 529(c) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Other gift tax rules</inline>.—</heading><chapeau>For purposes of chapters 12 and 13—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Treatment of distributions</inline>—</heading><content>Except as provided in subparagraph (B), in no event shall a distribution from a qualified tuition program be treated as a taxable gift.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Treatment of designation of new beneficiary</inline>.—</heading><content>The taxes imposed by chapters 12 and 13 shall apply to a transfer by reason of a change in the designated beneficiary under the program (or a rollover to the account of a new beneficiary) only if the new beneficiary is a generation below the generation of the old beneficiary (determined in accordance with section 2651).”.</content></subparagraph> </paragraph> </quotedContent> </content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Estate tax treatment</inline>.—</heading><content>Paragraph (4) of section 529(c) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Estate tax treatment</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>No amount shall be includible in the gross estate of any individual for purposes of chapter 11 by reason of an interest in a qualified tuition program.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Amounts includible in estate of designated beneficiary in certain cases</inline>.—</heading><content>Subparagraph (A) shall not apply to amounts distributed on account of the death of a beneficiary.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Amounts includible in estate of donor making excess contributions</inline>.—</heading><content>In the case of a donor who makes the election described in paragraph (2)(B) and who dies before the close of the 5-year period referred to in such paragraph, notwithstanding subparagraph (A), the gross estate of the donor shall include the portion of such contributions properly allocable to periods after the date of death of the donor.”.</content></subparagraph> </paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>Prohibition against investment direction.—Section 529(b)(5) is amended by inserting “<quotedText>directly or indirectly</quotedText>” after “may not”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Coordination With Education Savings Bond</inline>.—</heading><content>Section 135(c)(2) (defining Qualified higher education expenses) is amended by adding at the end the following:<page identifier="/us/stat/111/812">111 STAT. 812</page> <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Contributions to qualified state tuition program</inline>.—</heading><content>Such term shall include any contribution to a qualified State tuition program (as defined in section 529) on behalf of a designated beneficiary (as defined in such section) who is an individual described in subparagraph (A); but there shall be no increase in the investment in the contract for purposes of applying section 529(c)(3)(A) by reason of any portion of such contribution which is not includible in gross income by reason of this subparagraph.”,</content></subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Clarification of Taxation of Distributions</inline>—</heading><content>Subparagraph (A) of section 529(c)(3) is amended by striking “<quotedText>section 72</quotedText>” and inserting “<quotedText>section 72(b)</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Technical Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num><subparagraph class="inline"><num value="A">(A)</num> <content>The heading for part VIII of subchapter F of chapter 1 is amended to read as follows: <quotedContent> <part> <num value="VIII">“PART VIII—</num><heading>HIGHER EDUCATION SAVINGS ENTITIES”.</heading> </part> </quotedContent> </content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">(B)</num> <content>The table of parts for subchapter F of chapter 1 is amended by striking the item relating to part VIII and inserting: <quotedContent> <toc> <referenceItem role="part"><designator>“Part VIII.</designator> <label>Higher education savings entities.”.</label></referenceItem> </toc> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><subparagraph class="inline"><num value="A">(A)</num> <content>Section 529(d) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Reports</inline>.—</heading><content>Each officer or employee having control of the qualified State tuition program or their designee shall make such reports regarding such program to the Secretary and to designated beneficiaries with respect to contributions, distributions, and such other matters as the Secretary may require. The reports required by this subsection shall be filed at such time and in such manner and furnished to such individuals at such time and in such manner as may be required by the Secretary.”.</content> </subsection> </quotedContent> </content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">(B)</num> <content>Paragraph (2) of section 6693(a) (relating to failure to provide reports on individual retirement accounts or annuities) is amended by striking “<quotedText>and</quotedText>” at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting “<quotedText>, and</quotedText>”, and by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>Section 529(d) (relating to qualified State tuition programs).”.</content></subparagraph> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>The section heading for section 6693 is amended by Striking “<inline class="smallCaps">individual retirement</inline>” and inserting “<quotedText><inline class="smallCaps">certain tax-favored</inline></quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>The item relating to section 6693 in the table of sections for part I of subchapter B of chapter 68 is amended by striking “<quotedText>individual retirement</quotedText>” and inserting “<quotedText>certain tax-favored</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s529">26 USC 529 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as otherwise provided in this subsection, the amendments made by this section shall take effect on January 1, 1998.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Expenses to include room and board</inline>.—</heading><content>The amendment made by subsection (a) shall take effect as if included in the amendments made by section 1806 of the Small Business Job Protection Act of 1996.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Eligible educational institution</inline>.—</heading><content>The amendment made by subsection (b)(2) shall apply to distributions after <page identifier="/us/stat/111/813">111 STAT. 813</page>December 31, 1997, with respect to expenses paid after such date (in taxable years ending after such date), for education furnished in academic periods beginning after such date.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Coordination with education savings bonds</inline>.—</heading><content>The amendment made by subsection (c) shall apply to taxable years beginning after December 31, 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <heading><inline class="smallCaps">Estate and gift tax changes</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">Gift tax changes</inline>.—</heading><content>Paragraphs (2) and (5) of section 529(c) of the Internal Revenue Code of 1986, as amended by this section, shall apply to transfers (including designations of new beneficiaries) made after the date of the enactment of this Act.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Estate tax changes</inline>.—</heading><content>Paragraph (4) of such section 529(c) shall apply to estates of decedents dying after June 8, 1997.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>Transition rule for pre-august 20,1996 contracts.— In the case of any contract issued prior to August 20, 1996, section 529(c)(3)(C) of the Internal Revenue Code of 1986 shall be applied for taxable years ending after August 20, 1996, without regard to the requirement that a distribution be transferred to a member of the family or the requirement that a change in beneficiaries may be made only to a member of the family.</content></paragraph> </subsection> </section> </part> <part> <num value="II">PART II—</num><heading>EDUCATION INDIVIDUAL RETIREMENT ACCOUNTS</heading> <section> <num value="213">SEC. 213.</num> <heading>EDUCATION INDIVIDUAL RETIREMENT ACCOUNTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Part VIII of subchapter F of chapter 1 (relating to qualified State tuition programs) is amended by adding at the end the following new section: <quotedContent> <section> <num value="530">“SEC. 530.</num> <heading>EDUCATION INDIVIDUAL RETIREMENT ACCOUNTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>An education individual retirement account shall be exempt from taxation under this subtitle. Notwithstanding the preceding sentence, the education individual retirement account shall be subject to the taxes imposed by section 511 (relating to imposition of tax on unrelated business income of charitable organizations).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Definitions and Special Rules</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Education individual retirement account</inline>.—</heading><chapeau>The term ‘education individual retirement account’ means a trust created or organized in the United States exclusively for the purpose of paying the qualified higher education expenses of the designated beneficiary of the trust (and designated as an education individual retirement account at the time created or organized), but only if the written governing instrument creating the trust meets the following requirements:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>No contribution will be accepted—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>unless it is in cash,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>after the date on which such beneficiary attains age 18, or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>except in the case of rollover contributions, if such contribution would result in aggregate contributions for the taxable year exceeding $500.<page identifier="/us/stat/111/814">111 STAT. 814</page></content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>The trustee is a bank (as defined in section 408(n)) or another person who demonstrates to the satisfaction of the Secretary that the manner in which that person will administer the trust will be consistent with the requirements of this section or who has so demonstrated with respect to any individual retirement plan.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>No part of the trust assets will be invested in life insurance contracts.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>The assets of the trust shall not be commingled with other property except in a common trust fund or common investment fund.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>Upon the death of the designated beneficiary, any balance to the credit of the beneficiary shall be distributed within 30 days after the date of death to the estate of such beneficiary.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Qualified higher education expenses</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The term ‘qualified higher education expenses’ has the meaning given such term by section 529(e)(3), reduced as provided in section 25A(g)(2).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Qualified state tuition programs</inline>.—</heading><content>Such term shall include amounts paid or incurred to purchase tuition credits or certificates, or to make contributions to an account, under a qualified State tuition program (as defined in section 529(b)) for the benefit of the beneficiary of the account.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Eligible educational institution</inline>.—</heading><content>The term ‘eligible educational institution’ has the meaning given such term by section 529(e)(5).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Reduction in Permitted Contributions Based on Adjusted Gross Income</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The maximum amount which a contributor could otherwise make to an account under this section shall be reduced by an amount which bears the same ratio to such maximum amount as—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>the excess of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the contributor’s modified adjusted gross income for such taxable year, over</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>$95,000 ($150,000 in the case of a joint return), bears to</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>$15,000 ($10,000 in the case of a joint return).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Modified adjusted gross income</inline>.—</heading><content>For purposes of paragraph (1), the term ‘modified adjusted gross income’ means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Tax Treatment of Distributions</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Any distribution shall be includible in the gross income of the distributee in the manner as provided in section 72(b).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Distributions for qualified higher education expenses</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>No amount shall be includible in gross income under paragraph (1) if the qualified higher education expenses of the designated beneficiary during the taxable year are not less than the aggregate distributions during the taxable year.<page identifier="/us/stat/111/815">111 STAT. 815</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Distributions in excess of expenses</inline>.—</heading><content>If such aggregate distributions exceed such expenses during the taxable year, the amount otherwise includible in gross income under paragraph (1) shall be reduced by the amount which bears the same ratio to the amount which would be includible in gross income under paragraph (1) (without regard to this subparagraph) as the qualified higher education expenses bear to such aggregate distributions.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Election to waive exclusion</inline>.—</heading><content>A taxpayer may elect to waive the application of this paragraph for any taxable year.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Special rules for applying estate and gift taxes with respect to account</inline>.—</heading><content>Rules similar to the rules of paragraphs (2), (4), and (5) of section 529(c) shall apply for purposes of this section.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Additional tax for distributions not used for educational expenses</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The tax imposed by this chapter for any taxable year on any taxpayer who receives a payment or distribution from an education individual retirement account which is includible in gross income shall be increased by 10 percent of the amount which is so includible.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Exceptions</inline>.—</heading><chapeau>Subparagraph (A) shall not apply if the payment or distribution is—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>made to a beneficiary (or to the estate of the designated beneficiary) on or after the death of the designated beneficiary,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>attributable to the designated beneficiary’s being disabled (within the meaning of section 72(m)(7)), or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>made on account of a scholarship, allowance, or payment described in section 25A(g)(2) received by the account holder to the extent the amount of the payment or distribution does not exceed the amount of the scholarship, allowance, or payment.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Excess contributions returned before due date of return</inline>.—</heading><chapeau>Subparagraph (A) shall not apply to the distribution of any contribution made during a taxable year on behalf of a designated beneficiary to the extent that such contribution exceeds $500 if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>such distribution is received on or before the day prescribed by law (including extensions of time) for filing such contributor’s return for such taxable year, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>such distribution is accompanied by the amount of net income attributable to such excess contribution.</content></clause> <continuation class="indent0 fontsize10">Any net income described in clause (ii) shall be included in gross income for the taxable year in which such excess contribution was made.</continuation> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Rollover contributions</inline>.—</heading><content>Paragraph (1) shall not apply to any amount paid or distributed from an education individual retirement account to the extent that the amount received is paid into another education individual retirement account for the benefit of the same beneficiary or a member of the family (within the meaning of section 529(e)(2)) of such <page identifier="/us/stat/111/816">111 STAT. 816</page>beneficiary not later than the 60th day after the date of such payment or distribution. The preceding sentence shall not apply to any payment or distribution if it applied to any prior payment or distribution during the 12-month period ending on the date of the payment or distribution.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Change in beneficiary</inline>.—</heading><content>Any change in the beneficiary of an education individual retirement account shall not be treated as a distribution for purposes of paragraph (1) if the new beneficiary is a member of the family (as so defined) of the old beneficiary.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Special rules for death and divorce</inline>.—</heading><content>Rules similar to the rules of paragraphs (7) and (8) of section 220(f) shall.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Tax Treatment of Accounts</inline>.—</heading><content>Rules similar to the rules of paragraphs (2) and (4) of section 408(e) shall apply to any education individual retirement account.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Community Property Laws</inline>.—</heading><content>This section shall be applied without regard to any community property laws.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Custodial Accounts</inline>.—</heading><content>For purposes of this section, a custodial account shall be treated as a trust if the assets of such account are held by a bank (as defined in section 408(n)) or another person who demonstrates, to the satisfaction of the Secretary, that the manner in which he will administer the account will be consistent with the requirements of this section, and if the custodial account would, except for the fact that it is not a trust, constitute an account described in subsection (b)(1). For purposes of this title, in the case of a custodial account treated as a trust by reason of the preceding sentence, the custodian of such account shall be treated as the trustee thereof.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Reports</inline>.—</heading><content>The trustee of an education individual retirement account shall make such reports regarding such account to the Secretary and to the beneficiary of the account with respect to contributions, distributions, and such other matters as the Secretary may require. The reports required by this subsection shall be fifed at such time and in such manner and furnished to such individuals at such time and in such manner as may be required.”.</content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Tax on Prohibited Transactions</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Paragraph (1) of section 4975(e) (relating to prohibited transactions) is amended by striking “<quotedText>or</quotedText>” at the end of subparagraph (D), by redesignating subparagraph (E) as subparagraph (F), and by inserting after subparagraph (D) the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>an education individual retirement account described in section 530, or”.</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Special rule</inline>.—</heading><content>Subsection (c) of section 4975 is amended by adding at the end of subsection (c) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Special rule for education individual retirement accounts</inline>.—</heading><content>An individual for whose benefit an education individual retirement account is established and any contributor to such account shall be exempt from the tax imposed by this section with respect to any transaction concerning such account (which would otherwise be taxable under this section) if section 530(d) applies with respect to such transaction.”,</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Failure To Provide Reports on Education Individual Retirement Accounts</inline>.—</heading><content>Paragraph (2) of section 6693(a) (relating to failure to provide reports on individual retirement accounts or <page identifier="/us/stat/111/817">111 STAT. 817</page>annuities) is amended by striking “<quotedText>and</quotedText>” at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting and”, and by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>Section 530(h) (relating to education individual retirement accounts).”.</content></subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Tax on Excess Contributions</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subsection (a) of section 4973 is amended by striking “<quotedText>or</quotedText>” at the end of paragraph (2), by adding “<quotedText>or</quotedText>” at the end of paragraph (3), and by inserting after paragraph (3) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>an education individual retirement account (as defined in section 530),”.</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Excess contributions defined.—Section 4973 is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Excess Contributions to Education Individual Retirement Accounts</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of education individual retirement accounts maintained for the benefit of any 1 beneficiary, the term ‘excess contributions’ means—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the amount by which the amount contributed for the taxable year to such accounts exceeds $500, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>any amount contributed to such accounts for any taxable year if any amount is contributed during such year to a qualified State tuition program for the benefit of such beneficiary.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Special rules</inline>.—</heading><chapeau>For purposes of paragraph (1), the following contributions shall not be taken into account:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Any contribution which is distributed out of the education individual retirement account in a distribution to which section 530(d)(4)(C) applies.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Any contribution described in section 530(b)(2)(B) to a qualified State tuition program.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>Any rollover contribution”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Technical Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Section 26(b)(2) is amended by redesignating subparagraphs (E) through (P) as subparagraphs (F) through (Q), respectively, and by inserting after subparagraph (D) the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>section 530(d)(3) (relating to additional tax on certain distributions from education individual retirement accounts),”.</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Subparagraph (C) of section 135(c)(2), as added by the preceding section, is amended by inserting “<quotedText>, or to an education individual retirement account (as defined in section 530) on behalf of an account beneficiary,</quotedText>” after “(as defined in such section)”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>The table of sections for part VIII of subchapter F of chapter 1 is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 530.</designator> <label>Education individual retirement accounts.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s26">26 USC 26 note</ref>.</p></sidenote> shall apply to taxable years beginning after December 31, 1997.<page identifier="/us/stat/111/818">111 STAT. 818</page></content> </subsection> </section> </part> </subtitle> <subtitle> <num value="C">Subtitle C—</num><heading>Other Education Initiatives</heading> <section> <num value="221">SEC. 221.</num> <heading>EXTENSION OF EXCLUSION FOR EMPLOYER-PROVIDED EDUCATIONAL ASSISTANCE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (d) of section 127 (relating to educational assistance programs) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Termination</inline>.—</heading><content>This section shall not apply to expenses paid with respect to courses beginning after May 31, 2000.”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s127">26 USC 127 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1996.</content> </subsection> </section> <section> <num value="222">SEC. 222.</num> <heading>REPEAL OF LIMITATION ON QUALIFIED 501(c)(3) BONDS OTHER THAN HOSPITAL BONDS.</heading> <content>Section 145(b) (relating to qualified 501(c)(3) bond) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Termination of limitation</inline>.—</heading><content>This subsection shall not apply with respect to bonds issued after the date of the enactment of this paragraph as part of an issue 95 percent or more of the net proceeds of which are to be used to finance capital expenditures incurred after such date.”.</content></paragraph> </quotedContent> </content></section> <section> <num value="223">SEC. 223.</num> <heading>INCREASE IN ARBITRAGE REBATE EXCEPTION FOR GOVERNMENTAL BONDS USED TO FINANCE EDUCATION FACILITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 148(f)(4)(D) (relating to exception for governmental units issuing $5,000,000 or less of bonds) is amended by adding at the end the following new clause: <quotedContent> <clause class="indent3 fontsize10"><num value="vii">“(vii)</num> <heading><inline class="smallCaps">Increase in exception for bonds financing public school capital expenditures</inline>.—</heading><content>Each of the $5,000,000 amounts in the preceding provisions of this subparagraph shall be increased by the lesser of $5,000,000 or so much of the aggregate face amount of the bonds as are attributable to financing the construction (within the meaning of subparagraph (C)(iv)) of public school facilities.”.</content></clause> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s148">26 USC 148 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to bonds issued after December 31, 1997.</content> </subsection> </section> <section> <num value="224">SEC. 224.</num> <heading>CONTRIBUTIONS OF COMPUTER TECHNOLOGY AND EQUIPMENT FOR ELEMENTARY OR SECONDARY SCHOOL PURPOSES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Contributions of Computer Technology and Equipment for Elementary or Secondary School Purposes</inline>.—</heading><content>Subsection (e) of section 170 is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Special rule for contributions of computer technology and equipment for elementary or secondary school purposes</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Limit on reduction</inline>.—</heading><content>In the case of a qualified elementary or secondary educational contribution, the reduction under paragraph (1)(A) shall be no greater than the amount determined under paragraph (3)(B).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Qualified elementary or secondary educational contribution</inline>.—</heading><chapeau>For purposes of this paragraph, the term ‘qualified elementary or secondary educational <page identifier="/us/stat/111/819">111 STAT. 819</page>contribution’ means a charitable contribution by a corporation of any computer technology or equipment, but only if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <chapeau>the contribution is to—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>an educational organization described in subsection (b)(1)(A)(ii), or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>an entity described in section 501(c)(3) and exempt from tax under section 501(a) (other than an entity described in subclause (I)) that is organized primarily for purposes of supporting elementary and secondary education,</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the contribution is made not later than 2 years after the date the taxpayer acquired the property (or in the case of property constructed by the taxpayer, the date the construction of the property is substantially completed),</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>the original use of the property is by the donor or the donee,</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>substantially all of the use of the property by the donee is for use within the United States for educational purposes in any of the grades K–12 that are related to the purpose or function of the organization or entity,</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>the property is not transferred by the donee in exchange for money, other property, or services, except for shipping, installation and transfer costs,</content></clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <content>the property will fit productively into the entity’s education plan, and</content></clause> <clause class="indent3 fontsize10"><num value="vii">“(vii)</num> <content>the entity’s use and disposition of the property will be in accordance with the provisions of clauses (iv) and (v).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Contribution to private foundation</inline>.—</heading><chapeau>A contribution by a corporation of any computer technology or equipment to a private foundation (as defined in section 509) shall be treated as a qualified elementary or secondary educational contribution for purposes of this paragraph if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the contribution to the private foundation satisfies the requirements of clauses (ii) and (v) of subparagraph (B), and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>within 30 days after such contribution, the private foundation—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>contributes the property to an entity described in clause (i) of subparagraph (B) that satisfies the requirements of clauses (iv) through (vii) of subparagraph (B), and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>notifies the donor of such contribution.</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Special rule relating to construction of property</inline>.—</heading><content>For the purposes of this paragraph, the rules of paragraph (4)(C) shall apply.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For the purposes of this paragraph—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Computer technology or equipment</inline>.—</heading><content>The term ‘computer technology or equipment’ means computer software (as defined by section 197(e)(3)(B)), computer or peripheral equipment (as defined by section <page identifier="/us/stat/111/820">111 STAT. 820</page>168(i)(2)(B)), and fiber optic cable related to computer use.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Corporation</inline>.—</heading><content>The term ‘corporation’ has the meaning given to such term by paragraph (4)(D).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <heading><inline class="smallCaps">Termination</inline>.—</heading><content>This paragraph shall not apply to any contribution made during any taxable year beginning after December 31, 1999.”.</content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s170">26 USC 170 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section shall apply to taxable years beginning after December 31, 1997.</content> </subsection> </section> <section> <num value="225">SEC. 225.</num> <heading>TREATMENT OF CANCELLATION OF CERTAIN STUDENT LOANS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Certain Loans by Exempt Organizations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Paragraph (2) of section 108(f) (defining student loan) is amended by striking “<quotedText>or </quotedText>” at the end of subparagraph (B) and by striking subparagraph (D) and inserting the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <chapeau>any educational organization described in section 170(b)(1)(A)(ii) if such loan is made—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>pursuant to an agreement with any entity described in subparagraph (A), (B), or (C) under which the funds from which the loan was made were provided to such educational organization, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>pursuant to a program of such educational organization which is designed to encourage its students to serve in occupations with unmet needs or in areas with unmet needs and under which the services provided by the students (or former students) are for or under the direction of a governmental unit or an organization described in section 501(c)(3) and exempt from tax under section 501(a).</content></clause> <continuation class="indent0 fontsize10">The term ‘student loan’ includes any loan made by an educational organization so described or by an organization exempt from tax under section 501(a) to refinance a loan meeting the requirements of the preceding sentence.”.</continuation> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Exception for discharges on account of services performed for certain lenders</inline>.—</heading><content>Subsection (f) of section 108 is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Exception for discharges on account of services performed for certain lenders</inline>.—</heading><content>Paragraph (1) shall not apply to the discharge of a loan made by an organization described in paragraph (2)(D) (or by an organization described in paragraph (2)(E) from funds provided by an organization described in paragraph (2)(D)) if the discharge is on account of services performed for either such organization.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s108">26 USC 108 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to discharges of indebtedness after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="226">SEC. 226.</num> <heading>INCENTIVES FOR EDUCATION ZONES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subchapter U of chapter 1 (relating to additional incentives for empowerment zones) is amended by redesignating part IV as part V, by redesignating section 1397E as section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1397D">26 USC 1397D</ref>, 1397F.</p></sidenote>1397F, and by inserting after part III the following new part:<page identifier="/us/stat/111/821">111 STAT. 821</page> <quotedContent> <part> <num value="IV">“PART IV—</num><heading>INCENTIVES FOR EDUCATION ZONES</heading> <toc> <referenceItem role="section"><designator>“Sec. 1397E.</designator> <label>Credit to holders of qualified zone academy bonds.”.</label></referenceItem> </toc> <section> <num value="1397E">“SEC. 1397E.</num> <heading>CREDIT TO HOLDERS OF QUALIFIED ZONE ACADEMY BONDS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Allowance of Credit</inline>.—</heading><content>In the case of an eligible taxpayer who holds a qualified zone academy bond on the credit allowance date of such bond which occurs during the taxable year, there shall be allowed as a credit against the tax imposed by this chapter for such taxable year the amount determined under subsection (b).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Amount of Credit</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The amount of the credit determined under this subsection with respect to any qualified zone academy bond is the amount equal to the product of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the credit rate determined by the Secretary under paragraph (2) for the month in which such bond was issued, multiplied by</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the face amount of the bond held by the taxpayer on the credit allowance date.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Determination</inline>.—</heading><content>During each calendar month, the Secretary shall determine a credit rate which shall apply to bonds issued during the following calendar month. The credit rate for any month is the percentage which the Secretary estimates will permit the issuance of qualified zone academy bonds without discount and without interest cost to the issuer.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Limitation Based on Amount of Tax</inline>—</heading><chapeau>The credit allowed under subsection (a) for any taxable year shall not exceed the excess of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the sum of the credits allowable under part IV of subchapter A (other than subpart C thereof, relating to refundable credits).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Qualified Zone Academy Bond</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘qualified zone academy bond’ means any bond issued as part of an issue if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>95 percent or more of the proceeds of such issue are to be used for a qualified purpose with respect to a qualified zone academy established by an eligible local education agency,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the bond is issued by a State or local government within the jurisdiction of which such academy is located,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <chapeau>the issuer—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>designates such bond for purposes of this section,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>certifies that it has written assurances that the private business contribution requirement of paragraph (2) will be met with respect to such academy, and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>certifies that it has the written approval of the eligible local education agency for such bond issuance, and<page identifier="/us/stat/111/822">111 STAT. 822</page></content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>the term of each bond which is part of such issue does not exceed the maximum term permitted under paragraph (3).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Private business contribution requirement</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>For purposes of paragraph (1), the private business contribution requirement of this paragraph is met with respect to any issue if the eligible local education agency that established the qualified zone academy has written commitments from private entities to make qualified contributions having a present value (as of the date of issuance of the issue) of not less than 10 percent of the proceeds of the issue.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Qualified contributions</inline>.—</heading><chapeau>For purposes of subparagraph (A), the term ‘qualified contribution’ means any contribution (of a type and quality acceptable to the eligible local education agency) of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>equipment for use in the qualified zone academy (including state-of-the-art technology and vocational equipment),</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>technical assistance in developing curriculum or in training teachers in order to promote appropriate market driven technology in the classroom,</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>services of employees as volunteer mentors,</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>internships, field trips, or other educational opportunities outside the academy for students, or</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>any other property or service specified by the eligible local education agency.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Term requirement</inline>.—</heading><content>During each calendar month, the Secretary shall determine the maximum term permitted under this paragraph for bonds issued during the following calendar month. Such maximum term shall be the term which the Secretary estimates will result in the present value of the obligation to repay the principal on the bond being equal to 50 percent of the face amount of the bond. Such present value shall be determined using as a discount rate the average annual interest rate of tax-exempt obligations having a term of 10 years or more which are issued during the month. If the term as so determined is not a multiple of a whole year, such term shall be rounded to the next highest whole year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Qualified zone academy</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘qualified zone academy’ means any public school (or academic program within a public school) which is established by and operated under the supervision of an eligible local education agency to provide education or training below the postsecondary level if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>such public school or program (as the case may be) is designed in cooperation with business to enhance the academic curriculum, increase graduation and employment rates, and better prepare students for the rigors of college and the increasingly complex workforce,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>students in such public school or program (as the case may be) will be subject to the same academic standards and assessments as other students educated by the eligible local education agency, <page identifier="/us/stat/111/823">111 STAT. 823</page></content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>the comprehensive education plan of such public school or program is approved by the eligible local education agency, and</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num><subclause class="inline"><num value="I">(I)</num> <content>such public school is located in an empowerment zone or enterprise community (including any such zone or community designated after the date of the enactment of this section), or</content></subclause> <subclause class="indent0 fontsize10"><num value="II">“(II)</num> <content>there is a reasonable expectation (as of the date of issuance of the bonds) that at least 35 percent of the students attending such school or participating in such program (as the case may be) will be eligible for free or reduced-cost lunches under the school lunch program established under the National School Lunch Act.</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Eligible local education agency</inline>.—</heading><content>The term ‘eligible local education agency’ means any local education agency as defined in section 14101 of the Elementary and Secondary Education Act of 1965.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Qualified purpose</inline>.—</heading><chapeau>The term ‘qualified purpose’ means, with respect to any qualified zone academy—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>rehabilitating or repairing the public school facility in which the academy is established,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>providing equipment for use at such academy,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>developing course materials for education to be provided at such academy, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>training teachers and other school personnel in such academy.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Eligible taxpayer</inline>.—</heading><chapeau>The term ‘eligible taxpayer’ means—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>a bank (within the meaning of section 581),</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>an insurance company to which subchapter L applies, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>a corporation actively engaged in the business of lending money.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Limitation on Amount of Bonds Designated</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">National limitation</inline>.—</heading><content>There is a national zone academy bond limitation for each calendar year. Such limitation is $400,000,000 for 1998 and 1999, and, except as provided in paragraph (4), zero thereafter.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Allocation of limitation</inline>.—</heading><content>The national zone academy bond limitation for a calendar year shall be allocated by the Secretary among the States on the basis of their respective populations of individuals below the poverty line (as defined by the Office of Management and Budget). The limitation amount allocated to a State under the preceding sentence shall be allocated by the State education agency to qualified zone academies within such State.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Designation subject to limitation amount</inline>.—</heading><content>The maximum aggregate face amount of bonds issued during any calendar year which may be designated under subsection (d)(1) with respect to any qualified zone academy shall not exceed the limitation amount allocated to such academy under paragraph (2) for such calendar year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Carryover of unused limitation</inline>.—</heading><chapeau>If for any calendar year—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the limitation amount for any State, exceeds<page identifier="/us/stat/111/824">111 STAT. 824</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the amount of bonds issued during such year which are designated under subsection (d)(1) with respect to qualified zone academies within such State,</content></subparagraph> <continuation class="indent0 fontsize10">the limitation amount for such State for the following calendar year shall be increased by the amount of such excess.</continuation> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Other Definitions</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Credit allowance date</inline>.—</heading><content>The term ‘credit allowance date’ means, with respect to any issue, the last day of the 1-year period beginning on the date of issuance of such issue and the last day of each successive 1-year period thereafter.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Bond</inline>.—</heading><content>The term ‘bond’ includes any obligation.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">State</inline>.—</heading><content>The term ‘State’ includes the District of Columbia and any possession of the United States.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Credit Included in Gross Income</inline>.—</heading><content>Gross income includes the amount of the credit allowed to the taxpayer under this section.”.</content> </subsection> </section> </part> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments </inline>—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>The table of parts for subchapter U of chapter 1 is amended by striking the last item and inserting the following: <quotedContent> <toc> <referenceItem role="section"><designator>“Part IV.</designator> <label>Incentives for education zones.</label></referenceItem> <referenceItem role="section"><designator>“Part V.</designator> <label>Regulations.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><content><num value="2">(2)</num> The table of sections for part V, as so redesignated, is amended to read as follows: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 1397F.</designator> <label>Regulations.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8">26 USC 1397E note.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to obligations issued after December 31, 1997.</content> </subsection> </section> </subtitle> <num value="III">TITLE III—</num><heading>SAVINGS AND INVESTMENT INCENTIVES</heading> <subtitle> <num value="A">Subtitle A—</num><heading>Retirement Savings</heading> <section> <num value="301">SEC. 301.</num> <heading>RESTORATION OF IRA DEDUCTION FOR CERTAIN TAXPAYERS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Increase in Income Limits Applicable to Active Participants</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subparagraph (B) of section 219(g)(3) (relating to applicable dollar amount) is amended to read as follows: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Applicable dollar amount</inline>.—</heading><chapeau>The term ‘applicable dollar amount’ means the following:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>In the case of a taxpayer filing a joint return: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <thead> <tr> <th style="text-align:left"><b xmlns="http://schemas.gpo.gov/xml/uslm">“For taxable years beginning in:</b></th> <th style="text-align:right"><b xmlns="http://schemas.gpo.gov/xml/uslm">The applicable dollar amount is:</b></th> </tr> </thead> <tbody> <tr> <td style="text-align:left" leaders="yes">1998</td> <td style="text-align:right">$50,000</td> </tr> <tr> <td style="text-align:left" leaders="yes">1999</td> <td style="text-align:right">$51,000</td> </tr> <tr> <td style="text-align:left" leaders="yes">2000</td> <td style="text-align:right">$52,000</td> </tr> <tr> <td style="text-align:left" leaders="yes">2001</td> <td style="text-align:right">$53,000</td> </tr> <tr> <td style="text-align:left" leaders="yes">2002</td> <td style="text-align:right">$54,000</td> </tr> <tr> <td style="text-align:left" leaders="yes">2003</td> <td style="text-align:right">$60,000</td> </tr> <tr> <td style="text-align:left" leaders="yes">2004</td> <td style="text-align:right">$65,000</td> </tr> <tr> <td style="text-align:left" leaders="yes">2005</td> <td style="text-align:right">$70,000</td> </tr> <tr> <td style="text-align:left" leaders="yes">2006</td> <td style="text-align:right">$75,000</td> </tr> <tr> <td style="text-align:left" leaders="yes">2007 and thereafter</td> <td style="text-align:right">$80,000.00</td> </tr> </tbody> </table> <page identifier="/us/stat/111/825">111 STAT. 825</page> </content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>In the case of any other taxpayer (other than a married individual filing a separate return): <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <thead> <tr> <th style="text-align:left"><b xmlns="http://schemas.gpo.gov/xml/uslm">“For taxable years beginning in:</b></th> <th style="text-align:right"><b xmlns="http://schemas.gpo.gov/xml/uslm">The applicable dollar amount is:</b></th> </tr> </thead> <tbody> <tr> <td style="text-align:left" leaders="yes">1998</td> <td style="text-align:right">$30,000</td> </tr> <tr> <td style="text-align:left" leaders="yes">1999</td> <td style="text-align:right">$31,000</td> </tr> <tr> <td style="text-align:left" leaders="yes">2000</td> <td style="text-align:right">$32,000</td> </tr> <tr> <td style="text-align:left" leaders="yes">2001</td> <td style="text-align:right">$33,000</td> </tr> <tr> <td style="text-align:left" leaders="yes">2002</td> <td style="text-align:right">$34,000</td> </tr> <tr> <td style="text-align:left" leaders="yes">2003</td> <td style="text-align:right">$40,000</td> </tr> <tr> <td style="text-align:left" leaders="yes">2004</td> <td style="text-align:right">$45,000</td> </tr> <tr> <td style="text-align:left" leaders="yes">2005 and thereafter</td> <td style="text-align:right">$50,000</td> </tr> </tbody> </table> </content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>In the case of a married individual filing a separate return, zero”.</content></clause> </subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Increase in phase-out range for joint returns</inline>.—</heading><content>Clause (ii) of section 219(g)(2)(A) is amended by inserting “<quotedText>($20,000 in the case of a joint return for a taxable year beginning after December 31, 2006)</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Limitations for Active Participation Not Based on Spouse’s Participation</inline>.—</heading><chapeau>Section 219(g) (relating to limitation on deduction for active participants in certain pension plans) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>or the individual’s spouse</quotedText>” in paragraph (1), and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Special rule for certain spouses</inline>.—</heading><chapeau>In the case of an individual who is an active participant at no time during any plan year ending with or within the taxable year but whose spouse is an active participant for any part of any such plan year—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the applicable dollar amount under paragraph (3)(B)(i) with respect to the taxpayer shall be $150,000, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the amount applicable under paragraph (2)(A)(ii) shall be $10,000.”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s219">26 USC 219 note</ref>.</p></sidenote> shall apply to taxable years beginning after December 31, 1997.</content> </subsection> </section> <section> <num value="302">SEC. 302.</num> <heading>ESTABLISHMENT OF NONDEDUCTIBLE TAX-FREE INDIVIDUAL RETIREMENT ACCOUNTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subpart A of part I of subchapter D of chapter 1 (relating to pension, profit-sharing, stock bonus plans, etc.) is amended by inserting after section 408 the following new section: <quotedContent> <section> <num value="408A">“SEC. 408A.</num> <heading>ROTH IRAS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Except as provided in this section, a Roth IRA shall be treated for purposes of this title in the same manner as an individual retirement plan.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Roth IRA</inline>.—</heading><content>For purposes of this title, the term ‘Roth IRA’ means an individual retirement plan (as defined in section 7701(a)(37)) which is designated (in such manner as the Secretary may prescribe) at the time of establishment of the plan as a Roth IRA. Such designation shall be made in such manner as the Secretary may prescribe.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Treatment of Contributions</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">No deduction allowed</inline>.—</heading><content>No deduction shall be allowed under section 219 for a contribution to a Roth IRA.<page identifier="/us/stat/111/826">111 STAT. 826</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Contribution limit</inline>.—</heading><chapeau>The aggregate amount of contributions for any taxable year to all Roth IRAs maintained for the benefit of an individual shall not exceed the excess (if any) of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the maximum amount allowable as a deduction under section 219 with respect to such individual for such taxable year (computed without regard to subsection (d)(1) or (g) of such section), over</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the aggregate amount of contributions for such taxable year to all other individual retirement plans (other than Roth IRAs) maintained for the benefit of the individual.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Limits based on modified adjusted gross income</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Dollar limit</inline>.—</heading><chapeau>The amount determined under paragraph (2) for any taxable year shall be reduced (but not below zero) by the amount which bears the same ratio to such amount as—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <chapeau>the excess of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the taxpayer’s adjusted gross income for such taxable year, over</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the applicable dollar amount, bears to</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>$15,000 ($10,000 in the case of a joint return).</content></clause> <continuation class="indent0 fontsize10">The rules of subparagraphs (B) and (C) of section 219(g)(2) shall apply to any reduction under this subparagraph.</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Rollover from ira</inline>.—</heading><chapeau>A taxpayer shall not be allowed to make a qualified rollover contribution to a Roth IRA from an individual retirement plan other than a Roth IRA during any taxable year if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the taxpayer’s adjusted gross income for such taxable year exceeds $100,000, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the taxpayer is a married individual filing a separate return.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this paragraph—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>adjusted gross income shall be determined in the same manner as under section 219(g)(3), except that any amount included in gross income under subsection (d)(3) shall not be taken into account and the deduction under section 219 shall be taken into account, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>the applicable dollar amount is—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>in the case of a taxpayer filing a joint return, $150,000,</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>in the case of any other taxpayer (other than a married individual filing a separate return), $95,000, and</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>in the case of a married individual filing a separate return, zero.</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Marital status</inline>.—</heading><content>Section 219(g)(4) shall apply for purposes of this paragraph.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Contributions permitted after age 70½</inline>.—</heading><content>Contributions to a Roth IRA may be made even after the individual for whom the account is maintained has attained age 70½.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Mandatory distribution rules not to apply before death</inline>.—</heading><chapeau>Notwithstanding subsections (a)(6) and (b)(3) of section 408 (relating to required distributions), the following provisions shall not apply to any Roth IRA:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Section 401(a)(9)(A).<page identifier="/us/stat/111/827">111 STAT. 827</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>The incidental death benefit requirements of section 401(a).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Rollover contributions</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>No rollover contribution may be made to a Roth IRA unless it is a qualified rollover contribution.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Coordination with limit</inline>.—</heading><content>A qualified rollover contribution shall not be taken into account for purposes of paragraph (2).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Time when contributions made</inline>.—</heading><content>For purposes of this section, the rule of section 219(f)(3) shall apply.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Distribution Rules</inline>.—</heading><chapeau>For purposes of this title—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">General rules</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Exclusions from gross income</inline>.—</heading><content>Any qualified distribution from a Roth IRA shall not be includible in gross income.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Nonqualified distributions</inline>.—</heading><content>In applying section 72 to any distribution from a Roth IRA which is not a qualified distribution, such distribution shall be treated as made from contributions to the Roth IRA to the extent that such distribution, when added to all previous distributions from the Roth IRA, does not exceed the aggregate amount of contributions to the Roth IRA.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Qualified distribution</inline>.—</heading><chapeau>For purposes of this subsection—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘qualified distribution’ means any payment or distribution—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>made on or after the date on which the individual attains age 59½,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>made to a beneficiary (or to the estate of the individual) on or after the death of the individual,</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>attributable to the individual’s being disabled (within the meaning of section 72(m)(7)), or</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>which is a qualified special purpose distribution.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Certain distributions within 5 years</inline>.—</heading><chapeau>A payment or distribution shall not be treated as a qualified distribution under subparagraph (A) if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>it is made within the 5-taxable year period beginning with the 1st taxable year for which the individual made a contribution to a Roth IRA (or such individual’s spouse made a contribution to a Roth IRA) established for such individual, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>in the case of a payment or distribution properly allocable (as determined in the manner prescribed by the Secretary) to a qualified rollover contribution from an individual retirement plan other than a Roth IRA (or income allocable thereto), it is made within the 5-taxable year period beginning with the taxable year in which the rollover contribution was made.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Rollovers from an ira other than a Roth IRA</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Notwithstanding section 408(d)(3), in the case of any distribution to which this paragraph applies—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>there shall be included in gross income any amount which would be includible were it not part of a qualified rollover contribution,<page identifier="/us/stat/111/828">111 STAT. 828</page></content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>section 72(t) shall not apply, and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>in the case of a distribution before January 1, 1999, any amount required to be included in gross income by reason of this paragraph shall be so included ratably over the 4-taxable year period beginning with the taxable year in which the payment or distribution is made.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Distributions to which paragraph applies</inline>.—</heading><content>This paragraph shall apply to a distribution from an individual retirement plan (other than a Roth IRA) maintained for the benefit of an individual which is contributed to a Roth IRA maintained for the benefit of such individual in a qualified rollover contribution.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Conversions</inline>.—</heading><content>The conversion of an individual retirement plan (other than a Roth IRA) to a Roth IRA shall be treated for purposes of this paragraph as a distribution to which this paragraph applies.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Conversion of excess contributions</inline>.—</heading><content>If, no later than the due date for filing the return of tax for any taxable year (without regard to extensions), an individual transfers, from an individual retirement plan (other than a Roth IRA), contributions for such taxable year (and any earnings allocable thereto) to a Roth IRA, no such amount shall be includible in gross income to the extent no deduction was allowed with respect to such amount.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Additional reporting requirements</inline>.—</heading><content>Trustees of Roth IRAs, trustees of individual retirement plans, or both, whichever is appropriate, shall include such additional information in reports required under section 408(i) as the Secretary may require to ensure that amounts required to be included in gross income under subparagraph (A) are so included.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Coordination with individual retirement accounts</inline>.—</heading><content>Section 408(d)(2) shall be applied separately with respect to Roth IRAs and other individual retirement plans.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Qualified special purpose distribution</inline>.—</heading><content>For purposes of this section, the term ‘qualified special purpose distribution’ means any distribution to which subparagraph (F) of section 72(t)(2) applies.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Qualified Rollover Contribution</inline>.—</heading><content>For purposes of this section, the term ‘qualified rollover contribution’ means a rollover contribution to a Roth IRA from another such account, or from an individual retirement plan, but only if such rollover contribution meets the requirements of section 408(d)(3). For purposes of section 408(d)(3)(B), there shall be disregarded any qualified rollover contribution from an individual retirement plan (other than a Roth IRA) to a Roth IRA.”.</content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Excess Contributions</inline>.—</heading><content>Section 4973(b), as amended by title II, is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Excess Contributions to Roth IRAs</inline>.—</heading><chapeau>For purposes of this section, in the case of contributions to a Roth IRA (within the meaning of section 408A(b)), the term ‘excess contributions’ means the sum of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <chapeau>the excess (if any) of—<page identifier="/us/stat/111/829">111 STAT. 829</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the amount contributed for the taxable year to such accounts (other than a qualified rollover contribution described in section 408A(e)), over</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the amount allowable as a contribution under sections 408A (c)(2) and (c)(3), and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <chapeau>the amount determined under this subsection for the preceding taxable year, reduced by the sum of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the distributions out of the accounts for the taxable year, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the excess (if any) of the maximum amount allowable as a contribution under sections 408A (c)(2) and (c)(3) for the taxable year over the amount contributed to the accounts for the taxable year.</content></subparagraph> </paragraph> <continuation class="indent0 fontsize10">For purposes of this subsection, any contribution which is distributed from a Roth IRA in a distribution described in section 408(d)(4) shall be treated as an amount not contributed.”.</continuation> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Spousal IRA</inline>.—</heading><content>Clause (ii) of section 219(c)(1)(B) is amended to read as follows: <quotedContent> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>the compensation includible in the gross income of such individual’s spouse for the taxable year reduced by—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the amount allowed as a deduction under subsection (a) to such spouse for such taxable year, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the amount of any contribution on behalf of such spouse to a Roth IRA under section 408A for such taxable year.”.</content></subclause> </clause> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Authority To Prescribe Necessary Reporting</inline>.—</heading><chapeau>Section 408(i) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>under regulations</quotedText>”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<quotedText>in such regulations</quotedText>” each place it appears.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>The table of sections for subpart A of part I of subchapter D of chapter 1 is amended by inserting after the item relating to section 408 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 408A.</designator> <label>Roth IRAs”.</label></referenceItem> </toc> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s219">26 USC 219 note</ref>.</p></sidenote> shall apply to taxable years beginning after December 31, 1997.</content> </subsection> </section> <section> <num value="303">SEC. 303.</num> <heading>DISTRIBUTIONS FROM CERTAIN PLANS MAY BE USED WITHOUT PENALTY TO PURCHASE FIRST HOMES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Paragraph (2) of section 72(t) (relating to exceptions to 10-percent additional tax on early distributions from qualified retirement plans), as amended by section 203, is amended by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>Distributions from certain plans for first home purchases.—Distributions to an individual from an individual retirement plan which are qualified first-time homebuyer distributions (as defined in paragraph (8)). Distributions shall not be taken into account under the preceding sentence if such distributions are described in subparagraph (A), (C), (D), or (E) or to the extent paragraph (1) does not apply to such distributions by reason of subparagraph (B).”.</content></subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><content>Section 72(t), as amended by section 203, is amended by adding at the end the following new paragraphs: <quotedContent> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <heading><inline class="smallCaps">Qualified first-time homebuyer distributions</inline>.—</heading><chapeau>For purposes of paragraph (2)(F)—<page identifier="/us/stat/111/830">111 STAT. 830</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The term ‘qualified first-time homebuyer distribution’ means any payment or distribution received by an individual to the extent such payment or distribution is used by the individual before the close of the 120th day after the day on which such payment or distribution is received to pay qualified acquisition costs with respect to a principal residence of a first-time homebuyer who is such individual, the spouse of such individual, or any child, grandchild, or ancestor of such individual or the individual’s spouse.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Lifetime dollar limitation</inline>.—</heading><chapeau>The aggregate amount of payments or distributions received by an individual which may be treated as qualified first-time homebuyer distributions for any taxable year shall not exceed the excess (if any) of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>$10,000, over</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the aggregate amounts treated as qualified first-time homebuyer distributions with respect to such individual for all prior taxable years.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Qualified acquisition costs</inline>.—</heading><content>For purposes of this paragraph, the term ‘qualified acquisition costs’ means the costs of acquiring, constructing, or reconstructing a residence. Such term includes any usual or reasonable settlement, financing, or other closing costs.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">First-time homebuyer; other definitions</inline>.—</heading><chapeau>For purposes of this paragraph—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">First-time homebuyer</inline>.—</heading><chapeau>The term ‘first-time homebuyer’ means any individual if—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>such individual (and if married, such individual’s spouse) had no present ownership interest in a principal residence during the 2-year period ending on the date of acquisition of the principal residence to which this paragraph applies, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>subsection (h) or (k) of section 1034 (as in effect on the day before the date of the enactment of this paragraph) did not suspend the running of any period of time specified in section 1034 (as so in effect) with respect to such individual on the day before the date the distribution is applied pursuant to subparagraph (A).</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Principal residence</inline>.—</heading><content>The term ‘principal residence’ has the same meaning as when used in section 121.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Date of acquisition</inline>.—</heading><chapeau>The term ‘date of acquisition’ means the date—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>on which a binding contract to acquire the principal residence to which subparagraph (A) applies is entered into, or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>on which construction or reconstruction of such a principal residence is commenced.</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Special rule where delay in acquisition</inline>.—</heading><chapeau>If any distribution from any individual retirement plan fails to meet the requirements of subparagraph (A) solely by reason of a delay or cancellation of the purchase or construction of the residence, the amount of the distribution may be contributed to an individual retirement plan as <page identifier="/us/stat/111/831">111 STAT. 831</page>provided in section 408(d)(3)(A)(i) (determined by substituting ‘120 days’ for ‘60 days’ in such section), except that—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>section 408(d)(3)(B) shall not be applied to such contribution, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>such amount shall not be taken into account in determining whether section 408(d)(3)(B) applies to any other amount”.</content></clause> </subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s72">26 USC 72 note</ref>.</p></sidenote> shall apply to payments and distributions in taxable years beginning after December 31, 1997.</content> </subsection> </section> <section> <num value="304">SEC. 304.</num> <heading>CERTAIN BULLION NOT TREATED AS COLLECTIBLES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Paragraph (3) of section 408(m) (relating to exception for certain coins) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Exception for certain coins and bullion</inline>.—</heading><chapeau>For purposes of this subsection, the term ‘collectible’ shall not include—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>any coin which is—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>a gold coin described in paragraph (7), (8), (9), or (10) of section 5112(a) of title 31, United States Code,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>a silver coin described in section 5112(e) of title 31, United States Code,</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>a platinum coin described in section 5112(k) of title 31, United States Code, or</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>a coin issued under the laws of any State, or</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>any gold, silver, platinum, or palladium bullion of a fineness equal to or exceeding the minimum fineness that a contract market (as described in section 7 of the Commodity Exchange Act, 7 U.S.C. 7) requires for metals which may be delivered in satisfaction of a regulated futures contract,</content></subparagraph> <continuation class="indent0 fontsize10">if such bullion is in the physical possession of a trustee described under subsection (a) of this section.”.</continuation> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s408">26 USC 408 note</ref>.</p></sidenote> shall apply to taxable years beginning after December 31, 1997.</content> </subsection> </section> </subtitle> <subtitle> <num value="B">Subtitle B—</num><heading>Capital Gains</heading> <section> <num value="311">SEC. 311.</num> <heading>MAXIMUM CAPITAL GAINS RATES FOR INDIVIDUALS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (h) of section 1 (relating to maximum capital gains rate) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Maximum Capital Gains Rate</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>If a taxpayer has a net capital gain for any taxable year, the tax imposed by this section for such taxable year shall not exceed the sum of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>a tax computed at the rates and in the same manner as if this subsection had not been enacted on the greater of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>taxable income reduced by the net capital gain, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>the lesser of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the amount of taxable income taxed at a rate below 28 percent, or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>taxable income reduced by the adjusted net capital gain, plus <page identifier="/us/stat/111/832">111 STAT. 832</page></content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>25 percent of the excess (if any) of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the unrecaptured section 1250 gain (or, if less, the net capital gain), over</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>the excess (if any) of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the sum of the amount on which tax is determined under subparagraph (A) plus the net capital gain, over</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>taxable income, plus</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <chapeau>28 percent of the amount of taxable income in excess of the sum of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the adjusted net capital gain, plus</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the sum of the amounts on which tax is determined under subparagraphs (A) and (B), plus</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <chapeau>10 percent of so much of the taxpayer’s adjusted net capital gain (or, if less, taxable income) as does not exceed the excess (if any) of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the amount of taxable income which would (without regard to this paragraph) be taxed at a rate below 28 percent, over</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the taxable income reduced by the adjusted net capital gain, plus</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>20 percent of the taxpayer’s adjusted net capital gain (or, if less, taxable income) in excess of the amount on which a tax is determined under subparagraph (D).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Reduced capital gain rates for qualified 5-year gain</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Reduction in 10-percent rate</inline>.—</heading><content>In the case of any taxable year beginning after December 31, 2000, the rate under paragraph (1)(D) shall be 8 percent with respect to so much of the amount to which the 10-percent rate would otherwise apply as does not exceed qualified 5-year gain, and 10 percent with respect to the remainder of such amount.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Reduction in 20-percent rate</inline>.—</heading><chapeau>The rate under paragraph (1)(E) shall be 18 percent with respect to so much of the amount to which the 20-percent rate would otherwise apply as does not exceed the lesser of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the excess of qualified 5-year gain over the amount of such gain taken into account under subparagraph (A) of this paragraph, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the amount of qualified 5-year gain (determined by taking into account only property the holding period for which begins after December 31, 2000),</content></clause> <continuation class="indent0 fontsize10">and 20 percent with respect to the remainder of such amount. For purposes of determining under the preceding sentence whether the holding period of property begins after December 31, 2000, the holding period of property acquired pursuant to the exercise of an option (or other right or obligation to acquire property) shall include the period such option (or other right or obligation) was held.</continuation> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Net capital gain taken into account as investment income</inline>.—</heading><content>For purposes of this subsection, the net capital gain for any taxable year shall be reduced (but not below zero) by the amount which the taxpayer takes into account as investment income under section 163(d)(4)(B)(iii).<page identifier="/us/stat/111/833">111 STAT. 833</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Adjusted net capital gain</inline>.—</heading><chapeau>For purposes of this subsection, the term ‘adjusted net capital gain’ means net capital gain determined without regard to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>collectibles gain,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>unrecaptured section 1250 gain,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>section 1202 gain, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>mid-term gain.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Collectibles gain</inline>.—</heading><chapeau>For purposes of this subsection—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The term ‘collectibles gain’ means gain from the sale or exchange of a collectible (as defined in section 408(m) without regard to paragraph (3) thereof) which is a capital asset held for more than 1 year but only to the extent such gain is taken into account in computing gross income.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Partnerships, etc</inline>.—</heading><content>For purposes of subparagraph (A), any gain from the sale of an interest in a partnership, S corporation, or trust which is attributable to unrealized appreciation in the value of collectibles shall be treated as gain from the sale or exchange of a collectible. Rules similar to the rules of section 751 shall apply for purposes of the preceding sentence.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Unrecaptured section 1250 gain</inline>.—</heading><chapeau>For purposes of this subsection—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘unrecaptured section 1250 gain’ means the amount of long-term capital gain which would be treated as ordinary income if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>section 1250(b)(1) included all depreciation and the applicable percentage under section 1250(a) were 100 percent, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>in the case of gain properly taken into account after July 28, 1997, only gain from section 1250 property held for more than 18 months were taken into account.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Limitation with respect to section 1231 property</inline>.—</heading><content>The amount of unrecaptured section 1250 gain from sales, exchanges, and conversions described in section 1231(a)(3)(A) for any taxable year shall not exceed the excess of the net section 1231 gain (as defined in section 1231(c)(3)) for such year over the amount treated as ordinary income under section 1231(c)(1) for such year.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Pre-may 7, 1997, gain</inline>.—</heading><content>In the case of a taxable year which includes May 7, 1997, subparagraph (A) shall be applied by taking into account only the gain properly taken into account for the portion of the taxable year after May 6, 1997.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Section 1202 gain</inline>.—</heading><content>For purposes of this subsection, the term ‘section 1202 gain’ means an amount equal to the gain excluded from gross income under section 1202(a).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <heading><inline class="smallCaps">Mid-term gain</inline>.—</heading><chapeau>For purposes of this subsection, the term ‘mid-term gain’ means the amount which would be adjusted net capital gain for the taxable year if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>adjusted net capital gain were determined by taking into account only the gain or loss properly taken into account after July 28, 1997, from property held for more than 1 year but not more than 18 months, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>paragraph (3) and section 1212 did not apply.<page identifier="/us/stat/111/834">111 STAT. 834</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="9">“(9)</num> <heading><inline class="smallCaps">Qualified 5-year gain</inline>.—</heading><content>For purposes of this subsection, the term ‘qualified 5-year gain’ means the amount of long-term capital gain which would be computed for the taxable year if only gains from the sale or exchange of property held by the taxpayer for more than 5 years were taken into account. The determination under the preceding sentence shall be made without regard to collectibles gain, unrecaptured section 1250 gain (determined without regard to subparagraph (B) of paragraph (6)), section 1202 gain, or mid-term gain.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">“(10)</num> <heading><inline class="smallCaps">Pre-effective date gain</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In the case of a taxable year which includes May 7, 1997, gains and losses properly taken into account for the portion of the taxable year before May 7, 1997, shall be taken into account in determining mid-term gain as if such gains and losses were described in paragraph (8)(A).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Special rules for pass-thru entities</inline>.—</heading><content>In applying subparagraph (A) with respect to any pass-thru entity, the determination of when gains and loss are properly taken into account shall be made at the entity level.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Pass-thru entity defined</inline>.—</heading><chapeau>For purposes of subparagraph (B), the term ‘pass-thru entity’ means—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>a regulated investment company,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>a real estate investment trust,</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>an S corporation,</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>a partnership,</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>an estate or trust, and</content></clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <content>a common trust fund.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="11">“(11)</num> <heading><inline class="smallCaps">Treatment of pass-thru entities</inline>.—</heading><content>The Secretary may prescribe such regulations as are appropriate (including regulations requiring reporting) to apply this subsection in the case of sales and exchanges by pass-thru entities (as defined in paragraph (10)(C)) and of interests in such entities.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Minimum Tax</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subsection (b) of section 55 is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Maximum rate of tax on net capital gain of noncorporate taxpayers</inline>.—</heading><chapeau>The amount determined under the first sentence of paragraph (1)(A)(i) shall not exceed the sum of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>the amount determined under such first sentence computed at the rates and in the same manner as if this paragraph had not been enacted on the taxable excess reduced by the lesser of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the net capital gain, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>the sum of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the adjusted net capital gain, plus</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the unrecaptured section 1250 gain, plus</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>25 percent of the lesser of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the unrecaptured section 1250 gain, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>the amount of taxable excess in excess of the sum of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the adjusted net capital gain, plus</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the amount on which a tax is determined under subparagraph (A), plus</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>10 percent of so much of the taxpayer’s adjusted net capital gain (or, if less, taxable excess) as does not <page identifier="/us/stat/111/835">111 STAT. 835</page>exceed the amount on which a tax is determined under section 1(h)(1)(D), plus</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>20 percent of the taxpayer’s adjusted net capital gain (or, if less, taxable excess) in excess of the amount on which tax is determined under subparagraph (C).</content></subparagraph> <continuation class="indent0 fontsize10">In the case of taxable years beginning after December 31, 2000, rules similar to the rules of section 1(h)(2) shall apply for purposes of subparagraphs (C) and (D). Terms used in this paragraph which are also used in section 1(h) shall have the respective meanings given such terms by section 1(h).”.</continuation> </paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Clause (ii) of section 55(b)(1)(A) is amended by striking “<quotedText>clause (i)</quotedText>” and inserting “<quotedText>this subsection</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Paragraph (7) of section 57(a) is amended by striking “<quotedText>one-half</quotedText>” and inserting “<quotedText>42 percent</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Other Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Paragraph (1) of section 1445(e) is amended by striking “<quotedText>28 percent</quotedText>” and inserting “<quotedText>20 percent</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>The second sentence of section 7518(g)(6)(A), and the second sentence of section 607(h)(6)(A) of the Merchant Marine Act, 1936, are each amended by striking “<quotedText>28 percent</quotedText>”<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t6/s1177">6 USC app. 1177</ref>.</p></sidenote> and inserting “<quotedText>20 percent</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Paragraph (2) of section 904(b) is amended by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>Coordination with capital gains rates.—The Secretary may by regulations modify the application of this paragraph and paragraph (3) to the extent necessary to properly reflect any capital gain rate differential under section 1(h) or 1201(a) and the computation of net capital gain”.</content></subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1">26 USC 1 note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years ending after May 6, 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Withholding</inline>.—</heading><content>The amendment made by subsection (c)(1) shall apply only to amounts paid after the date of the enactment of this Act.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Election To Recognize Gain on Assets Held on January 1, 2001</inline>.—</heading><chapeau><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1">26 USC 1 note</ref>.</p></sidenote>For purposes of the Internal Revenue Code of 1986—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>A taxpayer other than a corporation may elect to treat—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>any readily tradable stock (which is a capital asset) held by such taxpayer on January 1, 2001, and not sold before the next business day after such date, as having been sold on such next business day for an amount equal to its closing market price on such next business day (and as having been reacquired on such next business day for an amount equal to such closing market price), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>any other capital asset or property used in the trade or business (as defined in section 1231(b) of the Internal Revenue Code of 1986) held by the taxpayer on January 1, 2001, as having been sold on such date for an amount equal to its fair market value on such date (and as having been reacquired on such date for an amount equal to such fair market value).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Treatment of gain or loss</inline>.—<page identifier="/us/stat/111/836">111 STAT. 836</page></heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Any gain resulting from an election under paragraph (1) shall be treated as received or accrued on the date the asset is treated as sold under paragraph (1) and shall be recognized notwithstanding any provision of the Internal Revenue Code of 1986.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Any loss resulting from an election under paragraph (1) shall not be allowed for any taxable year.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Election</inline>.—</heading><content>An election under paragraph (1) shall be made in such manner as the Secretary of the Treasury or his delegate may prescribe and shall specify the assets for which such election is made. Such an election, once made with respect to any asset, shall be irrevocable.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Readily tradable stock</inline>.—</heading><content>For purposes of this subsection, the term “readily tradable stock” means any stock which, as of January 1, 2001, is readily tradable on an established securities market or otherwise.</content></paragraph> </subsection> </section> <section> <num value="312">SEC. 312.</num> <heading>EXEMPTION FROM TAX FOR GAIN ON SALE OF PRINCIPAL RESIDENCE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 121 (relating to one-time exclusion of gain from sale of principal residence by individual who has attained age 55) is amended to read as follows: <quotedContent> <section> <num value="121">“SEC. 121.</num> <heading>EXCLUSION OF GAIN FROM SALE OF PRINCIPAL RESIDENCE.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Exclusion</inline>.—</heading><content>Gross income shall not include gain from the sale or exchange of property if, during the 5-year period ending on the date of the sale or exchange, such property has been owned and used by the taxpayer as the taxpayer’s principal residence for periods aggregating 2 years or more.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Limitations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amount of gain excluded from gross income under subsection (a) with respect to any sale or exchange shall not exceed $250,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">$500,000 limitation for certain joint returns</inline>.—</heading><chapeau>Paragraph (1) shall be applied by substituting ‘$500,000’ for ‘$250,000’ if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>a husband and wife make a joint return for the taxable year of the sale or exchange of the property,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>either spouse meets the ownership requirements of subsection (a) with respect to such property,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>both spouses meet the use requirements of subsection (a) with respect to such property, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>neither spouse is ineligible for the benefits of subsection (a) with respect to such property by reason of paragraph (3).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Application to only 1 sale or exchange every 2 years</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subsection (a) shall not apply to any sale or exchange by the taxpayer if, during the 2-year period ending on the date of such sale or exchange, there was any other sale or exchange by the taxpayer to which subsection (a) applied.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Pre-may 7, 1997, sales not taken into account</inline>.—</heading><content>Subparagraph (A) shall be applied without regard to any sale or exchange before May 7, 1997.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Exclusion for Taxpayers Failing to Meet Certain Requirements</inline>.—<page identifier="/us/stat/111/837">111 STAT. 837</page></heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of a sale or exchange to which this subsection applies, the ownership and use requirements of subsection (a) shall not apply and subsection (b)(3) shall not apply; but the amount of gain excluded from gross income under subsection (a) with respect to such sale or exchange shall not exceed—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the amount which bears the same ratio to the amount which would be so excluded under this section if such requirements had been met, as</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>the shorter of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the aggregate periods, dining the 5-year period ending on the date of such sale or exchange, such property has been owned and used by the taxpayer as the taxpayer’s principal residence, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the period after the date of the most recent prior sale or exchange by the taxpayer to which subsection (a) applied and before the date of such sale or exchange,</content></clause> <continuation class="indent0 fontsize10">bears to 2 years.</continuation> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Sales and exchanges to which subsection applies</inline>.—</heading><chapeau>This subsection shall apply to any sale or exchange if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>subsection (a) would not (but for this subsection) apply to such sale or exchange by reason of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>a failure to meet the ownership and use requirements of subsection (a), or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>subsection (b)(3), and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>such sale or exchange is by reason of a change in place of employment, health, or, to the extent provided in regulations, unforeseen circumstances.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Special Rules</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Joint returns</inline>.—</heading><content>If a husband and wife make a joint return for the taxable year of the sale or exchange of the property, subsections (a) and (c) shall apply if either spouse meets the ownership and use requirements of subsection (a) with respect to such property.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Property of deceased spouse</inline>.—</heading><content>For purposes of this section, in the case of an unmarried individual whose spouse is deceased on the date of the sale or exchange of property, the period such unmarried individual owned and used such property shall include the period such deceased spouse owned and used such property before death.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Property owned by spouse or former spouse</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Property transferred to individual from spouse or former spouse</inline>.—</heading><content>In the case of an individual holding property transferred to such individual in a transaction described in section 1041(a), the period such individual owns such property shall include the period the transferor owned the property.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Property used by former spouse pursuant to divorce decree, etc</inline>.—</heading><content>Solely for purposes of this section, an individual shall be treated as using property as such individual’s principal residence during any period of ownership while such individual’s spouse or former spouse is granted use of the property under a divorce or separation instrument (as defined m section 71(b)(2)).<page identifier="/us/stat/111/838">111 STAT. 838</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Tenant-stockholder in cooperative housing corporation</inline>.—</heading><chapeau>For purposes of this section, if the taxpayer holds stock as a tenant-stockholder (as defined in section 216) in a cooperative housing corporation (as defined in such section), then—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the holding requirements of subsection (a) shall be applied to the holding of such stock, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the use requirements of subsection (a) shall be applied to the house or apartment which the taxpayer was entitled to occupy as such stockholder.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Involuntary conversions</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>For purposes of this section, the destruction, theft, seizure, requisition, or condemnation of property shall be treated as the sale of such property.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Application of section 1033</inline>.—</heading><content>In applying section 1033 (relating to involuntary conversions), the amount realized from the sale or exchange of property shall be treated as being the amount determined without regard to this section, reduced by the amount of gain not included in gross income pursuant to this section.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Property acquired after involuntary conversion</inline>.—</heading><content>If the basis of the property sold or exchanged is determined (in whole or in part) under section 1033(b) (relating to basis of property acquired through involuntary conversion), then the holding and use by the taxpayer of the converted property shall be treated as holding and use by the taxpayer of the property sold or exchanged.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Recognition of gain attributable to depreciation</inline>.—</heading><content>Subsection (a) shall not apply to so much of the gain from the sale of any property as does not exceed the portion of the depreciation adjustments (as defined in section 1250(b)(3)) attributable to periods after May 6, 1997, in respect of such property.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <chapeau>Determination of use during periods of out-of-residence care.—In the case of a taxpayer who—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>becomes physically or mentally incapable of selfcare, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>owns property and uses such property as the taxpayer’s principal residence during the 5-year period described in subsection (a) for periods aggregating at least 1 year,</content></subparagraph> <continuation class="indent0 fontsize10">then the taxpayer shall be treated as using such property as the taxpayer’s principal residence during any time during such 5-year period in which the taxpayer owns the property and resides in any facility (including a nursing home) licensed by a State or political subdivision to care for an individual in the taxpayer’s condition.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <heading><inline class="smallCaps">Sales of remainder interests</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>At the election of the taxpayer, this section shall not fail to apply to the sale or exchange of an interest in a principal residence by reason of such interest being a remainder interest in such residence, but this section shall not apply to any other interest in such residence which is sold or exchanged separately.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Exception for sales to related parties</inline>.—</heading><content>Subparagraph (A) shall not apply to any sale to, or <page identifier="/us/stat/111/839">111 STAT. 839</page>exchange with, any person who bears a relationship to the taxpayer which is described in section 267(b) or 707(b).</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Denial of Exclusion for Expatriates</inline>.—</heading><content>This section shall not apply to any sale or exchange by an individual if the treatment provided by section 877(a)(1) applies to such individual.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Election To Have Section Not Apply</inline>.—</heading><content>This section shall not apply to any sale or exchange with respect to which the taxpayer elects not to have this section apply.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Residences Acquired in Rollovers Under Section 1034</inline>.—</heading><content>For purposes of this section, in the case of property the acquisition of which by the taxpayer resulted under section 1034 (as in effect on the day before the date of the enactment of this section) in the nonrecognition of any part of the gain realized on the sale or exchange of another residence, in determining the period for which the taxpayer has owned and used such property as the taxpayer’s principal residence, there shall be included the aggregate periods for which such other residence (and each prior residence taken into account under section 1223(7) in determining the holding period of such property) had been so owned and used.”.</content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Repeal of Nonrecognition of Gain on Rollover of Principal Residence</inline>.—</heading><content>Section 1034 (relating to rollover of gain on sale of principal residence) is hereby repealed.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Exception From Reporting</inline>.—</heading><content>Subsection (e) of section 6045 (relating to return required in the case of real estate transactions) is amended by adding at the end the following new paragraph: <quotedContent> <num value="5">“(5)</num> <heading><inline class="smallCaps">Exception for sales or exchanges of certain principal residences</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Paragraph (1) shall not apply to any sale or exchange of a residence for $250,000 or less if the person referred to in paragraph (2) receives written assurance in a form acceptable to the Secretary from the seller that—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>such residence is the principal residence (within the meaning of section 121) of the seller,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>if the Secretary requires the inclusion on the return under subsection (a) of information as to whether there is federally subsidized mortgage financing assistance with respect to the mortgage on residences, that there is no such assistance with respect to the mortgage on such residence, and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>the full amount of the gain on such sale or exchange is excludable from gross income under section 121.</content></clause> <continuation class="indent0 fontsize10">If such assurance includes an assurance that the seller is married, the preceding sentence shall be applied by substituting ‘$500,000’ for ‘$250,000’.</continuation> </subparagraph> <continuation class="indent0 fontsize10">The Secretary may by regulation increase the dollar amounts under this subparagraph if the Secretary determines that such an increase will not materially reduce revenues to the Treasury.</continuation> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Seller</inline>.—</heading><content>For purposes of this paragraph, the term ‘seller’ includes the person relinquishing the residence in an exchange.”.</content></subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>The following provisions of the Internal Revenue Code of 1986 are each amended by striking “<quotedText>section 1034</quotedText>” and inserting “<quotedText>section 121</quotedText>”: sections 25(e)(7), 56(e)(1)(A), 56(e)(3)(B)(i), <page identifier="/us/stat/111/840">111 STAT. 840</page>143(i)(1)(C)(i)(I), 163(h)(4)(A)(i)(I), 280A(d)(4)(A), 464(f)(3)(B)(i), 1033(h)(4), 1274(c)(3)(B), 6334(a)(13), and 7872(f)(11)(A).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Paragraph (4) of section 32(c) is amended by striking “<quotedText>(as defined in section 1034(h)(3))</quotedText>” and by adding at the end the following new sentence: “For purposes of the preceding sentence, the term ‘extended active duty’ means any period of active duty pursuant to a call or order to such duty for a period in excess of 90 days or for an indefinite period.”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Subparagraph (A) of 143(m)(6) is amended by inserting “<quotedText>(as in effect on the day before the date of the enactment of the Taxpayer Relief Act of 1997)</quotedText>” after “1034(e)”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>Subsection (e) of section 216 is amended by striking “<quotedText>such exchange qualifies for nonrecognition of gain under section 1034(f)</quotedText>” and inserting “<quotedText>such dwelling unit is used as his principal residence (within the meaning of section 121)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>Section 512(a)(3)(D) is amended by inserting “<quotedText>(as in effect on the day before the date of the enactment of the Taxpayer Relief Act of 1997)</quotedText>” after “1034”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>Paragraph (7) of section 1016(a) is amended by inserting “<quotedText>(as in effect on the day before the date of the enactment of the Taxpayer Relief Act of 1997)</quotedText>” after “1034” and by inserting “<quotedText>(as so in effect)</quotedText>” after “1034(e)”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <content>Paragraph (3) of section 1033(k) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>For exclusion from gross income of gain from involuntary conversion of principal residence, see section 121.”.</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8)</num> <content>Subsection (e) of section 1038 is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Principal Residences</inline>.—</heading><chapeau>If—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>subsection (a) applies to a reacquisition of real property with respect to the sale of which gain was not recognized under section 121 (relating to gain on sale of principal residence); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>within 1 year after the date of the reacquisition of such property by the seller, such property is resold by him, then, under regulations prescribed by the Secretary, subsections (b), (c), and (d) of this section shall not apply to the reacquisition of such property and, for purposes of applying section 121, the resale of such property shall be treated as a part of the transaction constituting the original sale of such property.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9)</num> <content>Paragraph (7) of section 1223 is amended by inserting “<quotedText>(as in effect on the day before the date of the enactment of the Taxpayer Relief Act of 1997)</quotedText>” after “1034”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10)</num><subparagraph class="inline"><num value="A">(A)</num> <content>Subsection (d) of section 1250 is amended by striking paragraph (7) and by redesignating paragraphs (9) and (10) as paragraphs (7) and (8), respectively.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">(B)</num> <content>Subsection (e) of section 1250 is amended by striking paragraph (3).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="11">(11)</num> <content>Subsection (c) of section 6012 is amended by striking “<quotedText>(relating to one-time exclusion of gain from sale of principal residence by individual who has attained age 55)</quotedText>” and inserting “<quotedText>(relating to gain from sale of principal residence)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="12">(12)</num> <content>Paragraph (2) of section 6212(c) is amended by striking subparagraph (C) and by redesignating the succeeding subparagraphs accordingly.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="13">(13)</num> <content>Section 6504 is amended by striking paragraph (4) and by redesignating the succeeding paragraphs accordingly.<page identifier="/us/stat/111/841">111 STAT. 841</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="14">(14)</num> <content>The item relating to section 121 in the table of sections for part III of subchapter B of chapter 1 is amended to read as follows: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 121.</designator> <label>Exclusion of gain from sale of principal residence.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="15">(15)</num> <content>The table of sections for part III of subchapter O of chapter 1 is amended by striking the item relating to section 1034.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s121">26 USC 121 note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendments made by this section shall apply to sales and exchanges after May 6, 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Sales before date of enactment</inline>.—</heading><content>At the election of the taxpayer, the amendments made by this section shall not apply to any sale or exchange before the date of the enactment of this Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Certain sales within 2 years after date of enactment</inline>.—</heading><content>Section 121 of the Internal Revenue Code of 1986 (as amended by this section) shall be applied without regard to subsection (c)(2)(B) thereof in the case of any sale or exchange of property during the 2-year period beginning on the date of the enactment of this Act if the taxpayer held such property on the date of the enactment of this Act and fails to meet the ownership and use requirements of subsection (a) thereof with respect to such property.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Binding contracts</inline>.—</heading><chapeau>At the election of the taxpayer, the amendments made by this section shall not apply to a sale or exchange after the date of the enactment of this Act, if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>such sale or exchange is pursuant to a contract which was binding on such date, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>without regard to such amendments, gain would not be recognized under section 1034 of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of this Act) on such sale or exchange by reason of a new residence acquired on or before such date or with respect to the acquisition of which by the taxpayer a binding contract was in effect on such date. This paragraph shall not apply to any sale or exchange by an individual if the treatment provided by section 877(a)(1) of the Internal Revenue Code of 1986 applies to such individual.</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="313">SEC. 313.</num> <heading>ROLLOVER OF GAIN FROM SALE OF QUALIFIED STOCK.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Part III of subchapter O of chapter 1 is amended by adding at the end the following new section: <quotedContent> <section> <num value="1045">“SEC. 1045.</num> <heading>ROLLOVER OF GAIN FROM QUALIFIED SMALL BUSINESS STOCK TO ANOTHER QUALIFIED SMALL BUSINESS STOCK.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Nonrecognition of Gain</inline>.—</heading><chapeau>In the case of any sale of qualified small business stock held by an individual for more than 6 months and with respect to which such individual elects the application of this section, gain from such sale shall be recognized only to the extent that the amount realized on such sale exceeds—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the cost of any qualified small business stock purchased by the taxpayer during the 60-day period beginning on the date of such sale, reduced by</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>any portion of such cost previously taken into account under this section.<page identifier="/us/stat/111/842">111 STAT. 842</page></content></paragraph> <continuation class="indent0 fontsize10">This section shall not apply to any gain which is treated as ordinary income for purposes of this title.</continuation> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Definitions and Special Rules</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Qualified small business stock</inline>.—</heading><content>The term ‘qualified small business stock’ has the meaning given such term by section 1202(c).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Purchase</inline>.—</heading><content>A taxpayer shall be treated as having purchased any property if, but for paragraph (3), the unadjusted basis of such property in the hands of the taxpayer would be its cost (within the meaning of section 1012).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Basis adjustments</inline>.—</heading><content>If gain from any sale is not recognized by reason of subsection (a), such gain shall be applied to reduce (in the order acquired) the basis for determining gain or loss of any qualified small business stock which is purchased by the taxpayer during the 60-day period described in subsection (a).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Holding period</inline>.—</heading><chapeau>For purposes of determining whether the nonrecognition of gain under subsection (a) applies to stock which is sold—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the taxpayer’s holding period for such stock and the stock referred to in subsection (a)(1) shall be determined without regard to section 1223, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>only the first 6 months of the taxpayer’s holding period for the stock referred to in subsection (a)(1) shall be taken into account for purposes of applying section 1202(c)(2).”.</content></subparagraph> </paragraph> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>Section 1016(a)(23) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>or 1044</quotedText>” and inserting “<quotedText>, 1044, or 1045</quotedText>”, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking “<quotedText>or 1044(d)</quotedText>” and inserting “<quotedText>, 1044(d), or 1045(b)(4)</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Section 1223 is amended by redesignating paragraph (15) as paragraph (16) and by inserting after paragraph (14) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="15">“(15)</num> <content>In determining the period for which the taxpayer has held property the acquisition of which resulted under section 1045 in the nonrecognition of any part of the gain realized on the sale of other property, there shall be included the period for which such other property has been held as of the date of such sale.”.</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>The table of sections for part III of subchapter O of chapter 1 is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 1045.</designator> <label>Rollover of gain from qualified small business stock to another qualified small business stock.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1016">26 USC 1016 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to sales after the date of enactment of this Act.</content> </subsection> </section> <section> <num value="314">SEC. 314.</num> <heading>AMOUNT OF NET CAPITAL GAIN TAKEN INTO ACCOUNT IN COMPUTING ALTERNATIVE TAX ON CAPITAL GAINS FOR CORPORATIONS NOT TO EXCEED TAXABLE INCOME OF THE CORPORATION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Paragraph (2) of section 1201(a) is amended by inserting before the period “(or, if less, taxable income)”.<page identifier="/us/stat/111/843">111 STAT. 843</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section shall apply to taxable years ending after December 31, 1997.</content> </subsection> </section> </subtitle> <num value="IV">TITLE IV—</num><heading>ALTERNATIVE MINIMUM TAX REFORM</heading> <section> <num value="401">SEC. 401.</num> <heading>EXEMPTION FROM ALTERNATIVE MINIMUM TAX FOR SMALL CORPORATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 55 (relating to alternative minimum tax imposed) is amended by adding at the end the following new subsection: <quotedContent> <num value="e">“(e)</num> <heading><inline class="smallCaps">Exemption for Small Corporations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The tentative minimum tax of a corporation shall be zero for any taxable year if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>such corporation met the $5,000,000 gross receipts test of section 448(c) for its first taxable year beginning after December 31, 1996, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>such corporation would meet such test for the taxable year and all prior taxable years beginning after such first taxable year if such test were applied by substituting ‘$7,500,000’ for ‘$5,000,000’.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <chapeau>Prospective application of minimum tax if small corporation CEASES TO BE SMALL.—In the case of a corporation whose tentative minimum tax is zero for any prior taxable year by reason of paragraph (1), the application of this part for taxable years beginning with the first taxable year such corporation ceases to be described in paragraph (1) shall be determined with the following modifications:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Section 56(a)(1) (relating to depreciation) and section 56(a)(5) (relating to pollution control facilities) shall apply only to property placed in service on or after the change date.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Section 56(a)(2) (relating to mining exploration and development costs) shall apply only to costs paid or incurred on or after the change date.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>Section 56(a)(3) (relating to treatment of longterm contracts) shall apply only to contracts entered into on or after the change date.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>Section 56(a)(4) (relating to alternative net operating loss deduction) shall apply in the same manner as if, in section 56(d)(2), the change date were substituted for ‘January 1, 1987’ and the day before the change date were substituted for ‘December 31, 1986’ each place it appears.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>Section 56(g)(2)(B) (relating to limitation on allowance of negative adjustments based on adjusted current earnings) shall apply only to prior taxable years beginning on or after the change date.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>Section 56(g)(4)(A) (relating to adjustment for depreciation to adjusted current earnings) shall not apply.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <content>Subparagraphs (D) and (F) of section 56(g)(4) (relating to other earnings and profits adjustments and depletion) shall apply in the same manner as if the day before the change date were substituted for ‘December 31, 1989’ each place it appears therein.<page identifier="/us/stat/111/844">111 STAT. 844</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Exception</inline>.—</heading><chapeau>The modifications in paragraph (2) shall not apply to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>any item acquired by the corporation in a transaction to which section 381 applies, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>any property the basis of which in the hands of the corporation is determined by reference to the basis of the property in the hands of the transferor,</content></subparagraph> <continuation class="indent0 fontsize10">if such item or property was subject to any provision referred to in paragraph (2) while held by the transferor.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Change date</inline>.—</heading><content>For purposes of paragraph (2), the change date is the first day of the first taxable year for which the taxpayer ceases to be described in paragraph (1).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Limitation on use of credit for prior year minimum tax liability</inline>.—</heading><content>In the case of a taxpayer whose tentative minimum tax for any taxable year is zero by reason of paragraph (1), section 53(c) shall be applied for such year by reducing the amount otherwise taken into account under section 53(c)(1) by 25 percent of so much of such amount as exceeds $25,000. Rules similar to the rules of section 38(c)(3)(B) shall apply for purposes of the preceding sentence.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s55">26 USC 55 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section shall apply to taxable years beginning after December 31, 1997.</content> </subsection> </section> <section> <num value="402">SEC. 402.</num> <heading>REPEAL OF SEPARATE DEPRECIATION LIVES FOR MINIMUM TAX PURPOSES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Clause (i) of section 56(a)(1)(A) is amended by adding at the end the following new sentence: “In the case of property placed in service after December 31, 1998, the preceding sentence shall not apply but clause (ii) shall continue to apply.”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Pollution Control Facilities</inline>.—</heading><content>Paragraph (5) of section 56(a) is amended by adding at the end the following new sentence: “In the case of such a facility placed in service after December 31, 1998, such deduction shall be determined under section 168 using the straight line method.”.</content> </subsection> </section> <section> <num value="403">SEC. 403.</num> <heading>MINIMUM TAX NOT TO APPLY TO FARMERS’ INSTALLMENT SALES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (a) of section 56 is amended by striking paragraph (6) (relating to treatment of installment sales) and by redesignating paragraphs (7) and (8) as paragraphs (6) and (7), respectively.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s56">26 USC 56 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendment made by this section shall apply to dispositions in taxable years beginning after December 31, 1987.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Special rule for 1987</inline>.—</heading><content>In the case of taxable years beginning in 1987, the last sentence of section 56(a)(6) of the Internal Revenue Code of 1986 (as in effect for such taxable years) shall be applied by inserting “<quotedText>or in the case of a taxpayer using the cash receipts and disbursements method of accounting, any disposition described in section 453C(e)(1)(B)(ii)</quotedText>” after “section 453C(e)(4)”.<page identifier="/us/stat/111/845">111 STAT. 845</page></content></paragraph> </subsection> </section> <num value="V">TITLE V—</num><heading>ESTATE, GIFT, AND GENERATION-SKIPPING TAX PROVISIONS</heading> <subtitle> <num value="A">Subtitle A—</num><heading>Estate and Gift Tax Provisions</heading> <section> <num value="501">SEC. 501.</num> <heading>COST-OF-LIVING ADJUSTMENTS RELATING TO ESTATE AND GIFT TAX PROVISIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Increase in Unified Estate and Gift Tax Credit</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Estate tax credit</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subsection (a) of section 2010 (relating to unified credit against estate tax) is amended by striking “<quotedText>$192,800</quotedText>” and inserting “<quotedText>the applicable credit amount</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Applicable credit amount</inline>.—</heading><content>Section 2010 is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Applicable Credit Amount</inline>.—</heading><content>For purposes of this section, the applicable credit amount is the amount of the tentative tax which would be determined under the rate schedule set forth in section 2001(c) if the amount with respect to which such tentative tax is to be computed were the applicable exclusion amount determined in accordance with the following table: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <thead> <tr> <th style="text-align:left"><b xmlns="http://schemas.gpo.gov/xml/uslm">“In the case of estates of decedents dying, and gifts made, during:</b></th> <th style="text-align:right"><b xmlns="http://schemas.gpo.gov/xml/uslm">The applicable exclusion amount is:</b></th> </tr> </thead> <tbody> <tr> <td style="text-align:left" leaders="yes">1998</td> <td style="text-align:right">$625,000</td> </tr> <tr> <td style="text-align:left" leaders="yes">1999</td> <td style="text-align:right">$650,000</td> </tr> <tr> <td style="text-align:left" leaders="yes">2000 and 2001</td> <td style="text-align:right">$675,000</td> </tr> <tr> <td style="text-align:left" leaders="yes">2002 and 2003</td> <td style="text-align:right">$700,000</td> </tr> <tr> <td style="text-align:left" leaders="yes">2004</td> <td style="text-align:right">$850,000</td> </tr> <tr> <td style="text-align:left" leaders="yes">2005</td> <td style="text-align:right">$950,000</td> </tr> <tr> <td style="text-align:left" leaders="yes">2006 or thereafter</td> <td style="text-align:right">$1,000,000.”.</td> </tr> </tbody> </table> </content></subsection> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <heading><inline class="smallCaps">Estate tax returns</inline>.—</heading><content>Paragraph (1) of section 6018(a) is amended by striking “<quotedText>$600,000</quotedText>” and inserting “<quotedText>the applicable exclusion amount in effect under section 2010(c) for the calendar year which includes the date of death</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <heading><inline class="smallCaps">Phaseout of graduated rates and unified credit</inline>.—</heading><content>Paragraph (2) of section 2001(c) is amended by striking “$21,040,000” and inserting “<quotedText>the amount at which the average tax rate under this section is 55 percent</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <heading><inline class="smallCaps">Estates of nonresidents not citizens</inline>.—</heading><content>Subparagraph (A) of section 2102(c)(3) is amended by striking “<quotedText>$192,800</quotedText>” and inserting “<quotedText>the applicable credit amount in effect under section 2010(c) for the calendar year which includes the date of death</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Unified gift tax credit</inline>.—</heading><content>Paragraph (1) of section 2505(a) is amended by striking “<quotedText>$192,800</quotedText>” and inserting “<quotedText>the applicable credit amount in effect under section 2010(c) for such calendar year</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Alternate Valuation of Certain Farm, Etc., Real Property</inline>.—</heading><content>Subsection (a) of section 2032A is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Inflation adjustment</inline>.—</heading><chapeau>In the case of estates of decedents dying in a calendar year after 1998, the $750,000 <page identifier="/us/stat/111/846">111 STAT. 846</page>amount contained in paragraph (2) shall be increased by an amount equal to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>$750,000, multiplied by</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting ‘calendar year 1997’ for ‘calendar year 1992’ in subparagraph (B) thereof.</content></subparagraph> <continuation class="indent0 fontsize10">If any amount as adjusted under the preceding sentence is not a multiple of $10,000, such amount shall be rounded to the next lowest multiple of $10,000”.</continuation> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Annual Gift Tax Exclusion</inline>.—</heading><chapeau>Subsection (b) of section 2503 is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking the subsection heading and inserting the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Exclusions From Gifts</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—”,</heading></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by moving the text 2 ems to the right, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Inflation adjustment</inline>.—</heading><chapeau>In the case of gifts made in a calendar year after 1998, the $10,000 amount contained in paragraph (1) shall be increased by an amount equal to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>$10,000, multiplied by</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting ‘calendar year 1997’ for ‘calendar year 1992’ in subparagraph (B) thereof.</content></subparagraph> <continuation class="indent0 fontsize10">If any amount as adjusted under the preceding sentence is not a multiple of $1,000, such amount shall be rounded to the next lowest multiple of $1,000.”.</continuation> </paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Exemption From Generation-Skipping Tax</inline>.—</heading><content>Section 2631 (relating to GST exemption) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Inflation Adjustment</inline>.—</heading><chapeau>In the case of an individual who dies in any calendar year after 1998, the $1,000,000 amount contained in subsection (a) shall be increased by an amount equal to—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>$1,000,000, multiplied by</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting ‘calendar year 1997’ for ‘calendar year 1992’ in subparagraph (B) thereof. If any amount as adjusted under the preceding sentence is not a multiple of $10,000, such amount shall be rounded to the next lowest multiple of $10,000.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Amount Subject to Reduced Rate Where Extension of Time for Payment of Estate Tax on Closely Held Business</inline>.—</heading><content>Subsection (j) of section 6601 is amended by redesignating paragraph (3) as paragraph (4) and by inserting after paragraph 2) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Inflation adjustment</inline>.—</heading><chapeau>In the case of estates of decedents dying in a calendar year after 1998, the $1,000,000 amount contained in paragraph (2)(A) shall be increased by an amount equal to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>$1,000,000, multiplied by</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting ‘calendar year 1997’ for ‘calendar year 1992’ in subparagraph (B) thereof.<page identifier="/us/stat/111/847">111 STAT. 847</page></content></subparagraph> <continuation class="indent0 fontsize10">If any amount as adjusted under the preceding sentence is not a multiple of $10,000, such amount shall be rounded to the next lowest multiple of $10,000.”.</continuation> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendments made by this section shall apply to the estates of decedents dying, and gifts made, after December 31, 1997.</content> </subsection> </section> <section> <num value="502">SEC. 502.</num> <heading>FAMILY-OWNED BUSINESS EXCLUSION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Part III of subchapter A of chapter 11 (relating to gross estate) is amended by inserting after section 2033 the following new section: <quotedContent> <section> <num value="2033A">“SEC. 2033A.</num> <heading>FAMILY-OWNED BUSINESS EXCLUSION.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>In the case of an estate of a decedent to which this section applies, the value of the gross estate shall not include the lesser of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the adjusted value of the qualified family-owned business interests of the decedent otherwise includible in the estate, or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the excess of $1,300,000 over the applicable exclusion amount under section 2010(c) with respect to such estate.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Estates to Which Section Applies</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>This section shall apply to an estate if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the decedent was (at the date of the decedent’s death) a citizen or resident of the United States,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the executor elects the application of this section and files the agreement referred to in subsection (h),</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <chapeau>the sum of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the adjusted value of the qualified family-owned business interests described in paragraph (2), plus</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the amount of the gifts of such interests determined under paragraph (3),</content></clause> <continuation class="indent0 fontsize10">exceeds 50 percent of the adjusted gross estate, and</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <chapeau>during the 8-year period ending on the date of the decedent’s death there have been periods aggregating 5 years or more during which—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>such interests were owned by the decedent or a member of the decedent’s family, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>there was material participation (within the meaning of section 2032A(e)(6)) by the decedent or a member of the decedent’s family in the operation of the business to which such interests relate.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Includible qualified family-owned business interests</inline>.—</heading><chapeau>The qualified family-owned business interests described in this paragraph are the interests which—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>are included in determining the value of the gross estate (without regard to this section), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>are acquired by any qualified heir from, or passed to any qualified heir from, the decedent (within the meaning of section 2032A(e)(9)).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Includible gifts of interests</inline>.—</heading><chapeau>The amount of the gifts of qualified family-owned business interests determined under this paragraph is the excess of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>the sum of—<page identifier="/us/stat/111/848">111 STAT. 848</page></chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the amount of such gifts from the decedent to members of the decedent’s family taken into account under subsection 2001(b)(1)(B), plus</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the amount of such gifts otherwise excluded under section 2503(b),</content></clause> <continuation class="indent0 fontsize10">to the extent such interests are continuously held by members of such family (other than the decedent’s spouse) between the date of the gift and the date of the decedent’s death, over</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the amount of such gifts from the decedent to members of the decedent’s family otherwise included in the gross estate.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Adjusted Gross Estate</inline>.—</heading><chapeau>For purposes of this section, the term ‘adjusted gross estate’ means the value of the gross estate (determined without regard to this section)—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>reduced by any amount deductible under paragraph (3) or (4) of section 2053(a), and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <chapeau>increased by the excess of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>the sum of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the amount of gifts determined under subsection (b)(3), plus</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the amount (if more than de minimis) of other transfers from the decedent to the decedent’s spouse (at the time of the transfer) within 10 years of the date of the decedent’s death, plus</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>the amount of other gifts (not included under clause (i) or (ii)) from the decedent within 3 years of such date, other than gifts to members of the decedent’s family otherwise excluded under section 2503(b), over</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the sum of the amounts described in clauses (i), (ii), and (iii) of subparagraph (A) which are otherwise includible in the gross estate.</content></subparagraph> <continuation class="indent0 fontsize10">For purposes of the preceding sentence, the Secretary may provide that de minimis gifts to persons other than members of the decedent’s family shall not be taken into account.</continuation> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Adjusted Value of the Qualified Family-Owned Business Interests</inline>.—</heading><chapeau>For purposes of this section, the adjusted value of any qualified family-owned business interest is the value of such interest for purposes of this chapter (determined without regard to this section), reduced by the excess of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>any amount deductible under paragraph (3) or (4) of section 2053(a), over</content></paragraph> <subparagraph class="indent2 fontsize10"><num value="2">“(2)</num> <chapeau>the sum of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>any indebtedness on any qualified residence of the decedent the interest on which is deductible under section 163(h)(3), plus</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>any indebtedness to the extent the taxpayer establishes that the proceeds of such indebtedness were used for the payment of educational and medical expenses of the decedent, the decedent’s spouse, or the decedent’s dependents (within the meaning of section 152), plus</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>any indebtedness not described in subparagraph (A) or (B), to the extent such indebtedness does not exceed $10,000.</content></subparagraph> </subparagraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Qualified Family-Owned Business Interest</inline>.—<page identifier="/us/stat/111/849">111 STAT. 849</page></heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of this section, the term ‘qualified family-owned business interest’ means—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>an interest as a proprietor in a trade or business carried on as a proprietorship, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>an interest in an entity carrying on a trade or business, if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <chapeau>at least—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>50 percent of such entity is owned (directly or indirectly) by the decedent and members of the decedent’s family,</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>70 percent of such entity is so owned by members of 2 families, or</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>90 percent of such entity is so owned by members of 3 families, and</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>for purposes of subclause (II) or (III) of clause (i), at least 30 percent of such entity is so owned by the decedent and members of the decedent’s family.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Limitation</inline>.—</heading><chapeau>Such term shall not include—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>any interest in a trade or business the principal place of business of which is not located in the United States,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>any interest in an entity, if the stock or debt of such entity or a controlled group (as defined in section 267(f)(1)) of which such entity was a member was readily tradable on an established securities market or secondary market (as defined by the Secretary) at any time within 3 years of the date of the decedent’s death,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>any interest in a trade or business not described in section 542(c)(2), if more than 35 percent of the adjusted ordinary gross income of such trade or business for the taxable year which includes the date of the decedent’s death would qualify as personal holding company income (as defined in section 543(a)),</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <chapeau>that portion of an interest in a trade or business that is attributable to—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>cash or marketable securities, or both, in excess of the reasonably expected day-to-day working capital needs of such trade or business, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>any other assets of the trade or business (other than assets used in the active conduct of a trade or business described in section 542(c)(2)), which produce, or are held for the production of, income of which is described in section 543(a) or in section 954(c)(1) (determined without regard to subparagraph (A) thereof and by substituting ‘trade or business’ for ‘controlled foreign corporation’).</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Rules regarding ownership</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Ownership of entities</inline>.—</heading><chapeau>For purposes of paragraph (1)(B)—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Corporations</inline>.—</heading><content>Ownership of a corporation shall be determined by the holding of stock possessing the appropriate percentage of the total combined voting power of all classes of stock entitled to vote and the appropriate percentage of the total value of shares of all classes of stock.<page identifier="/us/stat/111/850">111 STAT. 850</page></content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Partnerships</inline>.—</heading><content>Ownership of a partnership shall be determined by the owning of the appropriate percentage of the capital interest in such partnership.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Ownership of tiered entities</inline>.—</heading><chapeau>For purposes of this section, if by reason of holding an interest in a trade or business, a decedent, any member of the decedent’s family, any qualified heir, or any member of any qualified heir’s family is treated as holding an interest in any other trade or business—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>such ownership interest in the other trade or business shall be disregarded in determining if the ownership interest in the first trade or business is a qualified family-owned business interest, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>this section shall be applied separately in determining if such interest in any other trade or business is a qualified family-owned business interest.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Individual ownership rules</inline>.—</heading><content>For purposes of this section, an interest owned, directly or indirectly, by or for an entity described in paragraph (1)(B) shall be considered as being owned proportionately by or for the entity’s shareholders, partners, or beneficiaries. A person shall be treated as a beneficiary of any trust only if such person has a present interest in such trust.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Tax Treatment of Failure To Materially Participate in Business or Dispositions of Interests</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>There is imposed an additional estate tax if, within 10 years after the date of the decedent’s death and before the date of the qualified heir’s death—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the material participation requirements described in section 2032A(c)(6)(B) are not met with respect to the qualified family-owned business interest which was acquired (or passed) from the decedent,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the qualified heir disposes of any portion of a qualified family-owned business interest (other than by a disposition to a member of the qualified heir’s family or through a qualified conservation contribution under section 17001)),</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>the qualified heir loses United States citizenship (within the meaning of section 877) or with respect to whom an event described in subparagraph (A) or (B) of section 877(e)(1) occurs, and such heir does not comply with the requirements of subsection (g), or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>the principal place of business of a trade or business of the qualified family-owned business interest ceases to be located in the United States.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Additional estate tax</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The amount of the additional estate tax imposed by paragraph (1) shall be equal to—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the applicable percentage of the adjusted tax difference attributable to the qualified family-owned business interest (as determined under rules similar to the rules of section 2032A(c)(2)(B)), plus</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>interest on the amount determined under clause (i) at the underpayment rate established under section 6621 for the period beginning on the date the estate tax liability was due under this chapter and ending on the date such additional estate tax is due.<page identifier="/us/stat/111/851">111 STAT. 851</page></content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Applicable percentage</inline>.—</heading><content>For purposes of this paragraph, the applicable percentage shall be determined under the following table: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <thead> <tr> <th style="text-align:left"><b xmlns="http://schemas.gpo.gov/xml/uslm">“If the event described in paragraph (1) occurs in the following year of material participation:</b></th> <th style="text-align:right"><b xmlns="http://schemas.gpo.gov/xml/uslm">The applicable percentage is:</b></th> </tr> </thead> <tbody> <tr> <td style="text-align:left" leaders="yes">1 through 6</td> <td style="text-align:right">100</td> </tr> <tr> <td style="text-align:left" leaders="yes">7</td> <td style="text-align:right">80</td> </tr> <tr> <td style="text-align:left" leaders="yes">8</td> <td style="text-align:right">60</td> </tr> <tr> <td style="text-align:left" leaders="yes">9</td> <td style="text-align:right">40</td> </tr> <tr> <td style="text-align:left" leaders="yes">10</td> <td style="text-align:right">20</td> </tr> </tbody> </table> </content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Security Requirements for Noncitizen Qualified Heirs</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except upon the application of subparagraph (F) or (M) of subsection (i)(3), if a qualified heir is not a citizen of the United States, any interest under this section passing to or acquired by such heir (including any interest held by such heir at a time described in subsection (f)(1)(C)) shall be treated as a qualified family-owned business interest only if the interest passes or is acquired (or is held) in a qualified trust.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Qualified trust</inline>.—</heading><chapeau>The term ‘qualified trust’ means a trust—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>which is organized under, and governed by, the laws of the United States or a State, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>except as otherwise provided in regulations, with respect to which the trust instrument requires that at least 1 trustee of the trust be an individual citizen of the United States or a domestic corporation.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Agreement</inline>.—</heading><content>The agreement referred to in this subsection is a written agreement signed by each person in being who has an interest (whether or not in possession) in any property designated in such agreement consenting to the application of subsection (f) with respect to such property.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="i">“(i)</num> <heading><inline class="smallCaps">Other Definitions and Applicable Rules</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Qualified heir</inline>.—</heading><chapeau>The term ‘qualified heir’—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>has the meaning given to such term by section 2032A(e)(1), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>includes any active employee of the trade or business to which the qualified family-owned business interest relates if such employee has been employed by such trade or business for a period of at least 10 years before the date of the decedent’s death.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Member of the family</inline>.—</heading><content>The term ‘member of the family’ has the meaning given to such term by section 2032A(e)(2).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Applicable rules</inline>.—</heading><chapeau>Rules similar to the following rules shall apply:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Section 2032A(b)(4) (relating to decedents who are retired or disabled).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Section 2032A(b)(5) (relating to special rules for surviving spouses).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>Section 2032A(c)(2)(D) (relating to partial dispositions).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>Section 2032A(c)(3) (relating to only 1 additional tax imposed with respect to any 1 portion).<page identifier="/us/stat/111/852">111 STAT. 852</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>Section 2032A(c)(4) (relating to due date).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>Section 2032A(c)(5) (relating to liability for tax; furnishing of bond).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <content>Section 2032A(c)(7) (relating to no tax if use begins within 2 years; active management by eligible qualified heir treated as material participation).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num> <content>Paragraphs (1) and (3) of section 2032A(d) (relating to election; agreement).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="I">“(I)</num> <content>Section 2032A(e)(10) (relating to community property).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="J">“(J)</num> <content>Section 2032A(e)(14) (relating to treatment of replacement property acquired in section 1031 or 1033 transactions).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="K">“(K)</num> <content>Section 2032A(f) (relating to statute of limitations).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="L">“(L)</num> <content>Section 6166(b)(3) (relating to farmhouses and certain other structures taken into account).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="M">“(M)</num> <content>Subparagraphs (B), (C), and (D) of section 6166(g)(1) (relating to acceleration of payment).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="N">“(N)</num> <content>Section 6324B (relating to special lien for additional estate tax).”.</content></subparagraph> </paragraph> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections for part III of subchapter A of chapter 11 is amended by inserting after the item relating to section 2033 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 2033A.</designator> <label>Family-owned business exclusion.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2033A">26 USC 2033A note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to estates of decedents dying after December 31, 1997.</content> </subsection> </section> <section> <num value="503">SEC. 503.</num> <heading>MODIFICATIONS TO RATE OF INTEREST ON PORTION OF ESTATE TAX EXTENDED UNDER SECTION 6166.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Paragraphs (1) and (2) of section 6601(j) (relating to 4-percent rate on certain portion of estate tax extended under section 6166) are amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>If the time for payment of an amount of tax imposed by chapter 11 is extended as provided in section 6166, then in lieu of the annual rate provided by subsection (a)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>interest on the 2-percent portion of such amount shall be paid at the rate of 2 percent, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>interest on so much of such amount as exceeds the 2-percent portion shall be paid at a rate equal to 45 percent of the annual rate provided by subsection (a). For purposes of this subsection, the amount of any deficiency which is prorated to installments payable under section 6166 shall be treated as an amount of tax payable in installments under such section.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">2-percent portion</inline>.—</heading><chapeau>For purposes of this subsection, the term ‘2-percent portion’ means the lesser of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num><clause class="inline"><num value="i">(i)</num> <content>the amount of the tentative tax which would be determined under the rate schedule set forth in section 2001(c) if the amount with respect to which such tentative tax is to be computed were the sum of $1,000,000 and the applicable exclusion amount in effect under section 2010(c), reduced by</content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii)</num> <content>the applicable credit amount in effect under section 2010(c), or</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the amount of the tax imposed by chapter 11 which is extended as provided in section 6166.”.<page identifier="/us/stat/111/853">111 STAT. 853</page></content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Disallowance of Interest Deduction</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Estate tax</inline>.—</heading><content>Paragraph (1) of section 2053(c) is amended by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Section 6166 interest</inline>.—</heading><content>No deduction shall be allowed under this section for any interest payable under section 6601 on any unpaid portion of the tax imposed by section 2001 for the period during which an extension of time for payment of such tax is in effect under section 6166”.</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Income tax</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Section 163 is amended by redesignating subsection (k) as subsection (1) and by inserting after subsection (j) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="k">“(k)</num> <content>Section 6166 Interest.—No deduction shall be allowed under this section for any interest payable under section 6601 on any unpaid portion of the tax imposed by section 2001 for the period during which an extension of time for payment of such tax is in effect under section 6166.”.</content> </subsection> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Subparagraph (E) of section 163(h)(2) is amended by striking “<quotedText>or 6166</quotedText>” and all that follows and inserting a period.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Paragraphs (7)(A)(iii) and (8)(A)(iii) of section 6166(b) are amended by striking “<quotedText>4-percent</quotedText>” each place it appears (including the heading) and inserting “<quotedText>2-percent</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Paragraph (4) of section 6601(j), as redesignated by section 501(e), is amended by striking “<quotedText>4-percent</quotedText>” each place it appears and inserting “<quotedText>2-percent</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>The subsection heading for section 6601(j) is amended by striking “<quotedText>4-Percent</quotedText>” and inserting “<quotedText>2-Percent</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s163">26 USC 163 note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendments made by this section shall apply to estates of decedents dying after December 31, 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Election</inline>.—</heading><content>In the case of the estate of any decedent dying before January 1, 1998, with respect to which there is an election under section 6166 of the Internal Revenue Code of 1986, the executor of the estate may elect to have the amendments made by this section apply with respect to installments due after the effective date of the election; except that the 2-percent portion of such installments shall be equal to the amount which would be the 4-percent portion of such installments without regard to such election. Such an election shall be made before January 1, 1999 in the manner prescribed by the Secretary of the Treasury and, once made, is irrevocable.</content></paragraph> </subsection> </section> <section> <num value="504">SEC. 504.</num> <heading>EXTENSION OF TREATMENT OF CERTAIN RENTS UNDER SECTION 2032A TO LINEAL DESCENDANTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Paragraph (7) of section 2032A(c) (relating to special rules for tax treatment of dispositions and failures to use for qualified use) is amended by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Certain rents treated as qualified use</inline>.—</heading><content>For purposes of this subsection, a surviving spouse or lineal descendant of the decedent shall not be treated as failing to use qualified real property in a qualified use solely because such spouse or descendant rents such property <page identifier="/us/stat/111/854">111 STAT. 854</page>to a member of the family of such spouse or descendant on a net cash basis. For purposes of the preceding sentence, a legally adopted child of an individual shall be treated as the child of such individual by blood.”.</content></subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>Section 2032A(b)(5)(A) is amended by striking the last sentence.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2032A">26 USC 2032A note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply with respect to leases entered into after December 31, 1976.</content> </subsection> </section> <section> <num value="505">SEC. 505.</num> <heading>CLARIFICATION OF JUDICIAL REVIEW OF ELIGIBILITY FOR EXTENSION OF TIME FOR PAYMENT OF ESTATE TAX.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Part IV of subchapter C of chapter 76 of the Internal Revenue Code of 1986 (relating to declaratory judgments) is amended by adding at the end the following new section: <quotedContent> <section> <num value="7479">“SEC. 7479.</num> <heading>DECLARATORY JUDGMENTS RELATING TO ELIGIBILITY OF ESTATE WITH RESPECT TO INSTALLMENT PAYMENTS UNDER SECTION 6166.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Creation of remedy</inline>.—</heading><chapeau>In a case of actual controversy involving a determination by the Secretary of (or a failure by the Secretary to make a determination with respect to)—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>whether an election may be made under section 6166 (relating to extension of time for payment of estate tax where estate consists largely of interest in closely held business) with respect to an estate, or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>whether the extension of time for payment of tax provided in section 6166(a) has ceased to apply with respect to an estate,</content></paragraph> <continuation class="indent0 fontsize10">upon the filing of an appropriate pleading, the Tax Court may make a declaration with respect to whether such election may be made or whether such extension has ceased to apply. Any such declaration shall have the force and effect of a decision of the Tax Court and shall be reviewable as such.</continuation> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Limitations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Petitioner</inline>.—</heading><chapeau>A pleading may be filed under this section, with respect to any estate, only—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>by the executor of such estate, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>by any person who has assumed an obligation to make payments under section 6166 with respect to such estate (but only if each other such person is joined as a party).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Exhaustion of administrative remedies</inline>.—</heading><content>The court shall not issue a declaratory judgment or decree under this section in any proceeding unless it determines that the petitioner has exhausted all available administrative remedies within the Internal Revenue Service. A petitioner shall be deemed to have exhausted its administrative remedies with respect to a failure of the Secretary to make a determination at the expiration of 180 days after the date on which the request for such determination was made if the petitioner has taken, in a timely manner, all reasonable steps to secure such determination.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Time for bringing action</inline>.—</heading><content>If the Secretary sends by certified or registered mail notice of his determination as described in subsection (a) to the petitioner, no proceeding may be initiated under this section unless the pleading is filed before the 91st day after the date of such mailing”.<page identifier="/us/stat/111/855">111 STAT. 855</page></content></paragraph> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections for part IV of subchapter C of chapter 76 of such Code is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 7479.</designator> <label>Declaratory judgments relating to eligibility of estate with respect to installment payments under section 6166.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s7479">26 USC 7479 note</ref>.</p></sidenote> shall apply to the estates of decedents dying after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="506">SEC. 506.</num> <heading>GIFTS MAY NOT BE REVALUED FOR ESTATE TAX PURPOSES AFTER EXPIRATION OF STATUTE OF LIMITATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 2001 (relating to imposition and rate of estate tax) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Valuation of Gifts</inline>.—</heading><chapeau>If—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the time has expired within which a tax may be assessed under chapter 12 (or under corresponding provisions of prior laws) on the transfer of property by gift made during a preceding calendar period (as defined in section 2502(b)), and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the value of such gift is shown on the return for such preceding calendar period or is disclosed in such return, or in a statement attached to the return, in a manner adequate to apprise the Secretary of the nature of such gift, the value of such gift shall, for purposes of computing the tax under this chapter, be the value of such gift as finally determined for purposes of chapter 12.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Modification of Application of Statute of Limitations</inline>.—</heading><content>Paragraph (9) of section 6501(c) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="9">“(9)</num> <heading><inline class="smallCaps">Gift tax on certain gifts not shown on return</inline>.—</heading><content>If any gift of property the value of which (or any increase in taxable gifts required under section 2701(d) which) is required to be shown on a return of tax imposed by chapter 12 (without regard to section 2503(b)), and is not shown on such return, any tax imposed by chapter 12 on such gift may be assessed, or a proceeding in court for the collection of such tax may be begun without assessment, at any time. The preceding sentence shall not apply to any item which is disclosed in such return, or in a statement attached to the return, in a manner adequate to apprise the Secretary of the nature of such item. The value of any item which is so disclosed may not be redetermined by the Secretary after the expiration of the period under subsection (a).”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Declaratory Judgment Procedure for Determining Value of Gift</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Part IV of subchapter C of chapter 76 is amended by inserting after section 7476 the following new section: <quotedContent> <section> <num value="7477">“SEC. 7477.</num> <heading>DECLARATORY JUDGMENTS RELATING TO VALUE OF CERTAIN GIFTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Creation of Remedy</inline>.—</heading><content>In a case of an actual controversy involving a determination by the Secretary of the value of any gift shown on the return of tax imposed by chapter 12 or disclosed on such return or in any statement attached to such return, upon the filing of an appropriate pleading, the Tax Court may make <page identifier="/us/stat/111/856">111 STAT. 856</page>a declaration of the value of such gift. Any such declaration shall have the force and effect of a decision of the Tax Court and shall be reviewable as such.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Limitations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Petitioner</inline>.—</heading><content>A pleading may be filed under this section only by the donor.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Exhaustion of administrative remedies</inline>.—</heading><content>The court shall not issue a declaratory judgment or decree under this section in any proceeding unless it determines that the petitioner has exhausted all available administrative remedies within the Internal Revenue Service.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Time for bringing action</inline>.—</heading><content>If the Secretary sends by certified or registered mail notice of his determination as described in subsection (a) to the petitioner, no proceeding may be initiated under this section unless the pleading is filed before the 91st day after the date of such mailing.”.</content></paragraph> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Clerical amendment</inline>.—</heading><content>The table of sections for such part IV is amended by inserting after the item relating to section 7476 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 7477.</designator> <label>Declaratory judgments relating to value of certain gifts.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>Subsection (c) of section 2504 is amended by striking and if a tax under this chapter or under corresponding provisions of prior laws has been assessed or paid for such preceding calendar period”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2001">26 USC 2001 note</ref>.</p></sidenote> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendments made by subsections (a) and (c) shall apply to gifts made after the date of the enactment of this Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6501">26 USC 6501 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Subsection (b)</inline>—</heading><content>The amendment made by subsection (b) shall apply to gifts made in calendar years ending after the date of the enactment of this Act.</content></paragraph> </subsection> </section> <section> <num value="507">SEC. 507.</num> <heading>REPEAL OF THROWBACK RULES APPLICABLE TO CERTAIN DOMESTIC TRUSTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Accumulation Distributions</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 665 is amended by inserting after subsection (b) the following new subsection: <quotedContent> <num value="c">“(c)</num> <heading><inline class="smallCaps">Exception for Accumulation Distributions From Certain Domestic Trusts</inline>.—</heading><chapeau>For purposes of this subpart—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In the case of a qualified trust, any distribution in any taxable year beginning after the date of the enactment of this subsection shall be computed without regard to any undistributed net income.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Qualified trust</inline>.—</heading><chapeau>For purposes of this subsection, the term ‘qualified trust’ means any trust other than—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>a foreign trust (or, except as provided in regulations, a domestic trust which at any time was a foreign trust), or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>a trust created before March 1, 1984, unless it is established that the trust would not be aggregated with other trusts under section 643(f) if such section applied to such trust.”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading><content>Subsection (b) of section 665 is amended by inserting “<quotedText>except as provided in subsection (c),</quotedText>” after “subpart”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Repeal of Tax on Transfers to Trusts at Less Than Fair Market Value</inline>.—<page identifier="/us/stat/111/857">111 STAT. 857</page></heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Subpart A of part I of subchapter J of chapter 1 is amended by striking section 644 and by redesignating section 645 as section 644.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Paragraph (5) of section 706(b) is amended by striking “<quotedText>section 645</quotedText>” and inserting “<quotedText>section 644</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>The table of sections for such subpart is amended by striking the last 2 items and inserting the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 644.</designator> <label>Taxable year of trusts.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Accumulation distributions</inline>.—</heading><content>The amendments<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s665">26 USC 665 note</ref>.</p></sidenote> made by subsection (a) shall apply to distributions in taxable years beginning after the date of the enactment of this Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Transferred property</inline>.—</heading><content>The amendments made by<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s644">26 USC 644 note</ref>.</p></sidenote> subsection (b) shall apply to sales or exchanges after the date of the enactment of this Act.</content></paragraph> </subsection> </section> <section> <num value="508">SEC. 508.</num> <heading>TREATMENT OF LAND SUBJECT TO A QUALIFIED CONSERVATION EASEMENT.</heading> <subsection class="indent0 fontsize10"><num value="a">(a)</num> <heading><inline class="smallCaps">Estate Tax With Respect to Land Subject to a Qualified Conservation Easement</inline>.—</heading><content>Section 2031 (relating to the definition of gross estate) is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Estate Tax With Respect to Land Subject to a Qualified Conservation Easement</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>If the executor makes the election described in paragraph (6), then, except as otherwise provided in this subsection, there shall be excluded from the gross estate the lesser of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the applicable percentage of the value of land subject to a qualified conservation easement, reduced by the amount of any deduction under section 2055(f) with respect to such land, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the exclusion limitation.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Applicable percentage</inline>.—</heading><content>For purposes of paragraph (1), the term ‘applicable percentage’ means 40 percent reduced (but not below zero) by 2 percentage points for each percentage point (or fraction thereof) by which the value of the qualified conservation easement is less than 30 percent of the value of the land (determined without regard to the value of such easement and reduced by the value of any retained development right (as defined in paragraph (5)).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Exclusion limitation</inline>.—</heading><content>For purposes of paragraph (1), the exclusion limitation is the limitation determined in accordance with the following table: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <thead> <tr> <th style="text-align:left"><b xmlns="http://schemas.gpo.gov/xml/uslm">“In the case of estates of decedents dying during:</b></th> <th style="text-align:right"><b xmlns="http://schemas.gpo.gov/xml/uslm">The exclusion limitation is:</b></th> </tr> </thead> <tbody> <tr> <td style="text-align:left" leaders="yes">1998</td> <td style="text-align:right">$100,000</td> </tr> <tr> <td style="text-align:left" leaders="yes">1999</td> <td style="text-align:right">$200,000</td> </tr> <tr> <td style="text-align:left" leaders="yes">2000</td> <td style="text-align:right">$300,000</td> </tr> <tr> <td style="text-align:left" leaders="yes">2001</td> <td style="text-align:right">$400,000</td> </tr> <tr> <td style="text-align:left" leaders="yes">2002 or thereafter</td> <td style="text-align:right">$500,000</td> </tr> </tbody> </table> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Treatment of certain indebtedness</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The exclusion provided in paragraph (1) shall not apply to the extent that the land is debt-financed property.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this paragraph—<page identifier="/us/stat/111/858">111 STAT. 858</page></chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Debt-financed property</inline>.—</heading><content>The term ‘debt-financed property1 means any property with respect to which there is an acquisition indebtedness (as defined in clause (ii)) on the date of the decedent’s death.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Acquisition indebtedness</inline>.—</heading><chapeau>The term ‘acquisition indebtedness’ means, with respect to debt-financed property, the unpaid amount of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the indebtedness incurred by the donor in acquiring such property,</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the indebtedness incurred before the acquisition of such property if such indebtedness would not have been incurred but for such acquisition,</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>the indebtedness incurred after the acquisition of such property if such indebtedness would not have been incurred but for such acquisition and the incurrence of such indebtedness was reasonably foreseeable at the time of such acquisition, and</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>the extension, renewal, or refinancing of an acquisition indebtedness.</content></subclause> </clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Treatment of retained development right</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Paragraph (1) shall not apply to the value of any development right retained by the donor in the conveyance of a qualified conservation easement.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Termination of retained development right</inline>.—</heading><content>If every person in being who has an interest (whether or not in possession) in the land executes an agreement to extinguish permanently some or all of any development rights (as defined in subparagraph (D)) retained by the donor on or before the date for filing the return of the tax imposed by section 2001, then any tax imposed by section 2001 shall be reduced accordingly. Such agreement shall be filed with the return of the tax imposed by section 2001. The agreement shall be in such form as the Secretary shall prescribe.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Additional tax</inline>.—</heading><chapeau>Any failure to implement the agreement described in subparagraph (B) not later than the earlier of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the date which is 2 years after the date of the decedent’s death, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the date of the sale of such land subject to the qualified conservation easement,</content></clause> <continuation class="indent0 fontsize10">shall result in the imposition of an additional tax in the amount of the tax which would have been due on the retained development rights subject to such agreement. Such additional tax shall be due and payable on the last day of the 6th month following such date.</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Development right defined</inline>.—</heading><content>For purposes of this paragraph, the term ‘development right’ means any right to use the land subject to the qualified conservation easement in which such right is retained for any commercial purpose which is not subordinate to and directly supportive of the use of such land as a farm for farming purposes (within the meaning of section 2032A(e)(5)).<page identifier="/us/stat/111/859">111 STAT. 859</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Election</inline>.—</heading><content>The election under this subsection shall be made on the return of the tax imposed by section 2001. Such an election, once made, shall be irrevocable.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Calculation of estate tax due</inline>.—</heading><content>An executor making the election described in paragraph (6) shall, for purposes of calculating the amount of tax imposed by section 2001, include the value of any development right (as defined in paragraph (5)) retained by the donor in the conveyance of such qualified conservation easement. The computation of tax on any retained development right prescribed in this paragraph shall be done in such manner and on such forms as the Secretary shall prescribe.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this subsection—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Land subject to a qualified conservation easement</inline>.—</heading><chapeau>The term ‘land subject to a qualified conservation easement’ means land—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <chapeau>which is located—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>in or within 25 miles of an area which, on the date of the decedent’s death, is a metropolitan area (as defined by the Office of Management and Budget),</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>in or within 25 miles of an area which, on the date of the decedent’s death, is a national park or wilderness area designated as part of the National Wilderness Preservation System (unless it is determined by the Secretary that land in or within 25 miles of such a park or wilderness area is not under significant development pressure), or</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>in or within 10 miles of an area which, on the date of the decedent’s death, is an Urban National Forest (as designated by the Forest Service),</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>which was owned by the decedent or a member of the decedent’s family at all times during the 3-year period ending on the date of the decedent’s death, and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>with respect to which a qualified conservation easement has been made by an individual described in subparagraph (C), as of the date of the election described in paragraph (6).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Qualified conservation easement</inline>.—</heading><content>The term ‘qualified conservation easement’ means a qualified conservation contribution (as defined in section 170(h)(1)) of a qualified real property interest (as defined in section 170(h)(2)(C)), except that clause (iv) of section 170(h)(4)(A) shall not apply, and the restriction on the use of such interest described in section 170(h)(2)(C) shall include a prohibition on more than a de minimis use for a commercial recreational activity.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Individual described</inline>.—</heading><chapeau>An individual is described in this subparagraph if such individual is—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the decedent,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>a member of the decedent’s family,</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>the executor of the decedent’s estate, or<page identifier="/us/stat/111/860">111 STAT. 860</page></content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>the trustee of a trust the corpus of which includes the land to be subject to the qualified conservation easement.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Member of family</inline>.—</heading><content>The term ‘member of the decedent’s family’ means any member of the family (as defined in section 2032A(e)(2)) of the decedent.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="9">“(9)</num> <heading><inline class="smallCaps">Application of this section to interests in partnerships, corporations, and trusts</inline>.—</heading><content>This section shall apply to an interest in a partnership, corporation, or trust if at least 30 percent of the entity is owned (directly or indirectly) by the decedent, as determined under the rules described in section 2033A(e)(3).”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Carryover Basis</inline>.—</heading><content>Section 1014(a) (relating to basis of property acquired from a decedent) is amended by striking “<quotedText>or</quotedText>” at the end of paragraphs (1) and (2), by striking the period at the end of paragraph (3) and inserting “<quotedText>, or</quotedText>” and by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>to the extent of the applicability of the exclusion described in section 2031(c), the basis in the hands of the decedent”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Qualified Conservation Contribution Is Not a Disposition</inline>.—</heading><content>Subsection (c) of section 2032A (relating to alternative valuation method) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <heading><inline class="smallCaps">Qualified conservation contribution is not a disposition</inline>.—</heading><content>A qualified conservation contribution (as defined in section 170(h)) by gift or otherwise shall not be deemed a disposition under subsection (c)(1)(A).”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Qualified Conservation Contribution Where Surface and Mineral Rights are Separated</inline>.—</heading><content>Section 170(h)(5)(B)(ii) (relating to special rule) is amended to read as follows: <quotedContent> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Special rule</inline>.—</heading><content>With respect to any contribution of property in which the ownership of the surface estate and mineral interests has been and remains separated, subparagraph (A) shall be treated as met if the probability of surface mining occurring on such property is so remote as to be negligible.”.</content></clause> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1014">26 USC 1014 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Exclusion</inline>.—</heading><content>The amendments made by subsections (a) and (b) shall apply to estates of decedents dying after December 31, 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s170">26 USC 170 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Easements</inline>.—</heading><content>The amendments made by subsections (c) and (d) shall apply to easements granted after December 31, 1997.</content></paragraph> </subsection> </section> </subtitle> <subtitle> <num value="B">Subtitle B—</num><heading>Generation-Skipping Tax Provision</heading> <section> <num value="611">SEC. 611.</num> <heading>EXPANSION OF EXCEPTION FROM GENERATION-SKIPPING TRANSFER TAX FOR TRANSFERS TO INDIVIDUALS WITH DECEASED PARENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 2651 (relating to generation assignment) is amended by redesignating subsection (e) as subsection (f) and by inserting after subsection (d) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="e">“(e)</num> <heading><inline class="smallCaps">Special Rule for Persons With a Deceased Parent</inline>.—<page identifier="/us/stat/111/861">111 STAT. 861</page></heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of determining whether any transfer is a generation-skipping transfer, if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>an individual is a descendant of a parent of the transferor (or the transferor’s spouse or former spouse), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>such individual’s parent who is a lineal descendant of the parent of the transferor (or the transferor’s spouse or former spouse) is dead at the time the transfer (from which an interest of such individual is established or derived) is subject to a tax imposed by chapter 11 or 12 upon the transferor (and if there shall be more than 1 such time, then at the earliest such time), such individual shall be treated as if such individual were a member of the generation which is 1 generation below the lower of the transferor’s generation or the generation assignment of the youngest living ancestor of such individual who is also a descendant of the parent of the transferor (or the transferor’s spouse or former spouse), and the generation assignment of any descendant of such individual shall be adjusted accordingly.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Limited application of subsection to collateral heirs</inline>.—</heading><content>This subsection shall not apply with respect to a transfer to any individual who is not a lineal descendant of the transferor (or the transferor’s spouse or former spouse) if, at the time of the transfer, such transferor has any living lineal descendant.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments </inline>—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Section 2612(c) (defining direct skip) is amended by striking paragraph (2) and by redesignating paragraph (3) as paragraph (2).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Section 2612(c)(2) (as so redesignated) is amended by striking “<quotedText>section 2651(e)(2)</quotedText>” and inserting “<quotedText>section 2651(f)(2)</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2612">26 USC 2612 note</ref>.</p></sidenote> shall apply to terminations, distributions, and transfers occurring after December 31, 1997.</content> </subsection> </section> </subtitle> <num value="VI">TITLE VI—</num><heading>EXTENSIONS</heading> <section> <num value="601">SEC. 601.</num> <heading>RESEARCH TAX CREDIT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Paragraph (1) of section 41(h) (relating to termination) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>May 31, 1997</quotedText>” and inserting “<quotedText>June 30, 1998</quotedText>”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking in the last sentence “during the first 11 months of such taxable year.” and inserting “<quotedText>during the 24-month period beginning with the first month of such year. The 24 months referred to in the preceding sentence shall be reduced by the number of full months after June 1996 (and before the first month of such first taxable year) during which the taxpayer paid or incurred any amount which is taken into account in determining the credit under this section</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Technical Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Subparagraph (B) of section 41(c)(4) is amended to read as follows:<page identifier="/us/stat/111/862">111 STAT. 862</page> <quotedContent> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Election</inline>.—</heading><content>An election under this paragraph shall apply to the taxable year for which made and all succeeding taxable years unless revoked with the consent of the Secretary.”.</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Paragraph (1) of section 45C(b) is amended by striking “<quotedText>May 31, 1997</quotedText>” and inserting “<quotedText>June 30, 1998</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s41">26 USC 41 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to amounts paid or incurred after May 31, 1997.</content> </subsection> </section> <section> <num value="602">SEC. 602.</num> <heading>CONTRIBUTIONS OF STOCK TO PRIVATE FOUNDATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Clause (ii) of section 170(e)(5)(D) (relating to termination) is amended by striking “<quotedText>May 31, 1997</quotedText>” and inserting “<quotedText>June 30, 1998</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s170">26 USC 170 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall apply to contributions made after May 31, 1997.</content> </subsection> </section> <section> <num value="603">SEC. 603.</num> <heading>WORK OPPORTUNITY TAX CREDIT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Extension</inline>.—</heading><content>Subparagraph (B) of section 51(c)(4) (relating to termination) is amended by striking “<quotedText>September 30, 1997</quotedText>” and inserting “<quotedText>June 30, 1998</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Modification of Eligibility Requirement Based on Period on Welfare</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subparagraph (A) of section 51(d)(2) (defining qualified IV–A recipient) is amended by striking all that follows “a IV–A program” and inserting “<quotedText>for any 9 months during the 18-month period ending on the hiring date.</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conforming amendment</inline>.—</heading><content>Subparagraph (A) of section 51(d)(3) is amended to read as follows: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The term ‘qualified veteran’ means any veteran who is certified by the designated local agency as being a member of a family receiving assistance under a food stamp program under the Food Stamp Act of 1977 for at least a 3-month period ending during the 12-month period ending on the hiring date.”.</content></subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Qualified SSI Recipients Treated as Members of Targeted Groups</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 51(d)(1) (relating to members of targeted groups) is amended by striking “<quotedText>or</quotedText>” at the end of subparagraph (F), by striking the period at the end of subparagraph (G) and inserting “<quotedText>, or</quotedText>”, and by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num> <content>a qualified SSI recipient.”.</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Qualified ssi recipients</inline>.—</heading><content>Section 51(d) is amended by redesignating paragraphs (9), (10), and (11) as paragraphs (10), (11), and (12), respectively, and by inserting after paragraph (8) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="9">“(9)</num> <content>Qualified ssi recipient.—The term ‘qualified SSI recipient’ means any individual who is certified by the designated local agency as receiving supplemental security income benefits under title XVI of the Social Security Act (including supplemental security income benefits of the type described in section 1616 of such Act or section 212 of Public Law 9366) for any month ending within the 60-day period ending on the hiring date.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Percentage of Wages Allowed as Credit</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subsection (a) of section 51 (relating to determination of amount) is amended by striking “<quotedText>35 percent</quotedText>” and inserting “<quotedText>40 percent</quotedText>”.<page identifier="/us/stat/111/863">111 STAT. 863</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Application of credit for individuals performing fewer than 400 hours of services</inline>.—</heading><content>Paragraph (3) of section 51(i) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Individuals not meeting minimum employment periods</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Reduction of credit for individuals performing fewer than 400 hours of service</inline>.—</heading><content>In the case of an individual who has performed at least 120 hours, but less than 400 hours, of service for the employer, subsection (a) shall be applied by substituting ‘25 percent’ for ‘40 percent’.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Denial of credit for individuals performing fewer than 120 hours of service</inline>.—</heading><content>No wages shall be taken into account under subsection (a) with respect to any individual unless such individual has performed at least 120 hours of service for the employer.”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s51">26 USC 51 note</ref>.</p></sidenote> shall apply to individuals who begin work for the employer after September 30, 1997.</content> </subsection> </section> <section> <num value="604">SEC. 604.</num> <heading>ORPHAN DRUG TAX CREDIT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 45C (relating to clinical testing expenses for certain drugs for rare diseases or conditions) is amended by striking subsection (e).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a)<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s45C">26 USC 45C note</ref>.</p></sidenote> shall apply to amounts paid or incurred after May 31, 1997.</content> </subsection> </section> <num value="VII">TITLE VII—</num><heading>INCENTIVES FOR REVITALIZATION OF THE DISTRICT OF COLUMBIA</heading> <section> <num value="701">SEC. 701.</num> <heading>TAX INCENTIVES FOR REVITALIZATION OF THE DISTRICT OF COLUMBIA.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Chapter 1 is amended by adding at the end the following new subchapter: <quotedContent> <subchapter> <num value="W">“Subchapter W—</num><heading>District of Columbia Enterprise Zone</heading> <toc> <referenceItem role="section"><designator>“Sec. 1400.</designator> <label>Establishment of DC Zone.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 1400A.</designator> <label>Tax-exempt economic development bonds.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 1400B.</designator> <label>Zero percent capital gains rate.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 1400C.</designator> <label>First-time homebuyer credit for District of Columbia.</label></referenceItem> </toc> <section> <num value="1400">“SEC. 1400.</num> <heading>ESTABLISHMENT OF DC ZONE.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>For purposes of this title—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the applicable DC area is hereby designated as the District of Columbia Enterprise Zone, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>except as otherwise provided in this subchapter, the District of Columbia Enterprise Zone shall be treated as an empowerment zone designated under subchapter U.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Applicable DC Area</inline>.—</heading><chapeau>For purposes of subsection (a), the term ‘applicable DC area’ means the area consisting of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the census tracts located in the District of Columbia which are part of an enterprise community designated under subchapter U before the date of the enactment of this subchapter, and<page identifier="/us/stat/111/864">111 STAT. 864</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <chapeau>all other census tracts—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>which are located in the District of Columbia, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>for which the poverty rate is not less than than 20 percent.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">District of Columbia Enterprise Zone</inline>.—</heading><content>For purposes of this subchapter, the terms ‘District of Columbia Enterprise Zone’ and ‘DC Zone’ mean the District of Columbia Enterprise Zone designated by subsection (a).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Special Rules for Application of Employment Credit</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Employees whose principal place of abode is in district of columbia</inline>.—</heading><content>With respect to the DC Zone, section 1396(d)(1)(B) (relating to empowerment zone employment credit) shall be applied by substituting ‘the District of Columbia’ for ‘such empowerment zone’.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">No decrease of percentage in 2002</inline>.—</heading><content>In the case of the DC Zone, section 1396 (relating to empowerment zone employment credit) shall be applied by substituting “20” for “15” in the table contained in section 1396(b). The preceding sentence shall apply only with respect to qualified zone employees, as defined in section 1396(d), determined by treating no area other than the DC Zone as an empowerment zone or enterprise community.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Special Rule for Application of Enterprise Zone Business Definition</inline>.—</heading><content>For purposes of this subchapter and for purposes of applying subchapter U with respect to the DC Zone, section 1397B shall be applied without regard to subsections (b)(6) and (c)(5) thereof.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Time For Which Designation Applicable</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The designation made by subsection (a) shall apply for the period beginning on January 1, 1998, and ending on December 31, 2002.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Coordination with dc enterprise community designated under subchapter u</inline>.—</heading><content>The designation under subchapter U of the census tracts referred to in subsection (b)(1) as an enterprise community shall terminate on December 31, 2002.</content></paragraph> </subsection> </section> <section> <num value="1400A">“SEC. 1400A.</num> <heading>TAX-EXEMPT ECONOMIC DEVELOPMENT BONDS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>In the case of the District of Columbia Enterprise Zone, subparagraph (A) of section 1394(c)(1) (relating to limitation on amount of bonds) shall be applied by substituting ‘$15,000,000’ for ‘$3,000,000’.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Period of Applicability</inline>.—</heading><content>This section shall apply to bonds issued during the period beginning on January 1, 1998, and ending on December 31, 2002.</content> </subsection> </section> <section> <num value="1400B">“SEC. 1400B.</num> <heading>ZERO PERCENT CAPITAL GAINS RATE.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Exclusion</inline>.—</heading><content>Gross income shall not include qualified capital gain from the sale or exchange of any DC Zone asset held for more than 5 years.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">DC Zone Asset</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘DC Zone asset’ means—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>any DC Zone business stock,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>any DC Zone partnership interest, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>any DC Zone business property.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">DC zone business stock</inline>.—<page identifier="/us/stat/111/865">111 STAT. 865</page></heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘DC Zone business stock’ means any stock in a domestic corporation which is originally issued after December 31, 1997, if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>such stock is acquired by the taxpayer, before January 1, 2003, at its original issue (directly or through an underwriter) solely in exchange for cash,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>as of the time such stock was issued, such corporation was a DC Zone business (or, in the case of a new corporation, such corporation was being organized for purposes of being a DC Zone business), and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>during substantially all of the taxpayer’s holding period for such stock, such corporation qualified as a DC Zone business.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Redemptions</inline>.—</heading><content>A rule similar to the rule of section 1202(c)(3) shall apply for purposes of this paragraph.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">DC zone partnership interest</inline>.—</heading><chapeau>The term ‘DC Zone partnership interest’ means any capital or profits interest in a domestic partnership which is originally issued after December 31, 1997, if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>such interest is acquired by the taxpayer, before January 1, 2003, from the partnership solely in exchange for cash,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>as of the time such interest was acquired, such partnership was a DC Zone business (or, in the case of a new partnership, such partnership was being organized for purposes of being a DC Zone business), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>during substantially all of the taxpayer’s holding period for such interest, such partnership qualified as a DC Zone business.</content></subparagraph> <continuation class="indent0 fontsize10">A rule similar to the rule of paragraph (2)(B) shall apply for purposes of this paragraph.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">DC zone business property</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘DC Zone business property’ means tangible property if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>such property was acquired by the taxpayer by purchase (as defined in section 179(d)(2)) after December 31, 1997, and before January 1, 2003,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the original use of such property in the DC Zone commences with the taxpayer, and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>during substantially all of the taxpayer’s holding period for such property, substantially all of the use of such property was in a DC Zone business of the taxpayer.</content></clause> </paragraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Special rule for buildings which are substantially improved</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The requirements of clauses (i) and (ii) of subparagraph (A) shall be treated as met with respect to—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>property which is substantially improved by the taxpayer before January 1, 2003, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>any land on which such property is located.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Substantial improvement</inline>.—</heading><chapeau>For purposes of clause (i), property shall be treated as substantially improved by the taxpayer only if, during any 24-montn period beginning after December 31, 1997, additions <page identifier="/us/stat/111/866">111 STAT. 866</page>to basis with respect to such property in the hands of the taxpayer exceed the greater of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>an amount equal to the adjusted basis of such property at the beginning of such 24-month period in the hands of the taxpayer, or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>$5,000.</content></subclause> </clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Treatment of subsequent purchasers, etc</inline>.—</heading><content>The term ‘DC Zone asset’ includes any property which would be a DC Zone asset but for paragraph (2)(A)(i), (3)(A), or (4)(A)(ii) in the hands of the taxpayer if such property was a DC Zone asset in the hands of a prior holder.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">5-year safe harbor</inline>.—</heading><content>If any property ceases to be a DC Zone asset by reason of paragraph (2)(A)(iii), (3)(C), or (4)(A)(iii) after the 5-year period beginning on the date the taxpayer acquired such property, such property shall continue to be treated as meeting the requirements of such paragraph; except that the amount of gain to which subsection (a) applies on any sale or exchange of such property shall not exceed the amount which would be qualified capital gain had such property been sold on the date of such cessation.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">DC Zone Business</inline>.—</heading><chapeau>For purposes of this section, the term ‘DC Zone business’ means any entity which is an enterprise zone business (as defined in section 1397B), determined—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>after the application of section 1400(e),</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>by substituting “80 percent” for “50 percent” in subsections (b)(2) and (c)(1) of section 1397B, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>by treating no area other than the DC Zone as an empowerment zone or enterprise community.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Treatment of Zone as Including Census Tracts With 10 Percent Poverty Rate</inline>.—</heading><chapeau>For purposes of applying this section (and for purposes of applying this subchapter and subchapter U with respect to this section), the DC Zone shall be treated as including all census tracts—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>which are located in the District of Columbia, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>for which the poverty rate is not less than 10 percent.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Other Definitions and Special Rules</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Qualified capital gain</inline>.—</heading><chapeau>Except as otherwise provided in this subsection, the term ‘qualified capital gain’ means any gain recognized on the sale or exchange of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>a capital asset, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>property used in the trade or business (as defined in section 1231(b)).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Gain before 1998 or after 2007 not qualified</inline>.—</heading><content>The term ‘qualified capital gain’ shall not include any gain attributable to periods before January 1, 1998, or after December 31, 2007.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Certain gain not qualified</inline>.—</heading><content>The term ‘qualified capital gain’ shall not include any gain which would be treated as ordinary income under section 1245 or under section 1250 if section 1250 applied to all depreciation rather than the additional depreciation.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Intangibles and land not integral part of dc zone business</inline>.—</heading><content>The term ‘qualified capital gain’ shall not include any gain which is attributable to real property, or an intangible asset, which is not an integral part of a DC Zone business.<page identifier="/us/stat/111/867">111 STAT. 867</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Related party transactions</inline>.—</heading><content>The term ‘qualified capital gain’ shall not include any gain attributable, directly or indirectly, in whole or in part, to a transaction with a related person. For purposes of this paragraph, persons are related to each other if such persons are described in section 267(b) or 707(b)(1).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Certain Other Rules To Apply</inline>.—</heading><content>Rules similar to the rules of subsections (g), (h), (i)(2), and (j) of section 1202 shall apply for purposes of this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Sales and Exchanges of Interests in Partnerships and S Corporations Which Are DC Zone Businesses</inline>.—</heading><chapeau>In the case of the sale or exchange of an interest in a partnership, or of stock in an S corporation, which was a DC Zone business during substantially all of the period the taxpayer held such interest or stock, the amount of qualified capital gain shall be determined without regard to—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>any gain which is attributable to real property, or an intangible asset, which is not an integral part of a DC Zone business, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>any gain attributable to periods before January 1, 1998, or after December 31, 2007.</content></paragraph> </subsection> </section> <section> <num value="1400C">“SEC. 1400C.</num> <heading>FIRST-TIME HOMEBUYER CREDIT FOR DISTRICT OF COLUMBIA.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Allowance of Credit</inline>.—</heading><content>In the case of an individual who is a first-time homebuyer of a principal residence in the District of Columbia during any taxable year, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to so much of the purchase price of the residence as does not exceed $5,000.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Limitation Based on Modified Adjusted Gross Income</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The amount allowable as a credit under subsection (a) (determined without regard to this subsection) for the taxable year shall be reduced (but not below zero) by the amount which bears the same ratio to the credit so allowable as—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>the excess (if any) of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the taxpayer’s modified adjusted gross income for such taxable year, over</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>$70,000 ($110,000 in the case of a joint return), bears to</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>$20,000.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Modified adjusted gross income</inline>.—</heading><content>For purposes of paragraph (1), the term ‘modified adjusted gross income’ means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">First-Time Homebuyer</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The term ‘first-time homebuyer’ has the same meaning as when used in section 72(t)(8)(D)(i), except that ‘principal residence in the District of Columbia during the 1-year period’ shall be substituted for ‘principal residence during the 2-year period’ in subclause (I) thereof.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">One-time only</inline>.—</heading><content>If an individual is treated as a firsttime homebuyer with respect to any principal residence, such <page identifier="/us/stat/111/868">111 STAT. 868</page>individual may not be treated as a first-time homebuyer with respect to any other principal residence.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>The term ‘principal residence’ has the same meaning as when used in section 121.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Carryover of Credit</inline>.—</heading><content>If the credit allowable under subsection (a) exceeds the limitation imposed by section 26(a) for such taxable year reduced by the sum of the credits allowable under subpart A of part IV of subchapter A (other than this section), such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such taxable year.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Special Rules</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <chapeau>Allocation of dollar limitation.—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Married individuals filing separately</inline>.—</heading><content>In the case of a married individual filing a separate return, subsection (a) shall be applied by substituting ‘$2,500’ for ‘$5,000’.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Other taxpayers</inline>.—</heading><content>If 2 or more individuals who are not married purchase a principal residence, the amount of the credit allowed under subsection (a) shall be allocated among such individuals in such manner as the Secretary may prescribe, except that the total amount of the credits allowed to all such individuals shall not exceed $5,000.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Purchase</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘purchase’ means any acquisition, but only if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the property is not acquired from a person whose relationship to the person acquiring it would result in the disallowance of losses under section 267 or 707(b) (but, in applying section 267 (b) and (c) for purposes of this section, paragraph (4) of section 267(c) shall be treated as providing that the family of an individual shall include only his spouse, ancestors, and lineal descendants), and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>the basis of the property in the hands of the person acquiring it is not determined—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>in whole or in part by reference to the adjusted basis of such property in the hands of the person from whom acquired, or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>under section 1014(a) (relating to property acquired from a decedent).</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Construction</inline>.—</heading><content>A residence which is constructed by the taxpayer shall be treated as purchased by the taxpayer.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Purchase price</inline>.—</heading><content>The term ‘purchase price’ means the adjusted basis of the principal residence on the date of acquisition (within the meaning of section 72(t)(8)(D)(iii)).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Reporting</inline>.—</heading><content>If the Secretary requires information reporting under section 6045 by a person described in subsection (e)(2) thereof to verify the eligibility of taxpayers for the credit allowable by this section, the exception provided by section 6045(e)(5) shall not apply.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Credit Treated as Nonrefundable Personal Credit</inline>.—</heading><content>For purposes of this title, the credit allowed by this section shall be treated as a credit allowable under subpart A of part IV of subchapter A of this chapter.<page identifier="/us/stat/111/869">111 STAT. 869</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Basis Adjustment</inline>.—</heading><content>For purposes of this subtitle, if a credit is allowed under this section with respect to the purchase of any residence, the basis of such residence shall be reduced by the amount of the credit so allowed.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="i">“(i)</num> <heading><inline class="smallCaps">Termination</inline>.—</heading><content>This section shall not apply to any property purchased after December 31, 2000.”.</content> </subsection> </section> </subchapter> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Subsection (d) of section 39 is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <heading><inline class="smallCaps">No carryback of dc zone credits before effective date</inline>.—</heading><content>No portion of the unused business credit for any taxable year which is attributable to the credits allowable under subchapter U by reason of section 1400 may be carried back to a taxable year ending before the date of the enactment of section 1400.”.</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Subsection (a) of section 1016 is amended by striking “<quotedText>and</quotedText>” at the end of paragraph (25), by striking the period at the end of paragraph (26) and inserting “<quotedText>, and</quotedText>”, and by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="27">“(27)</num> <content>in the case of a residence with respect to which a credit was allowed under section 1400C, to the extent provided in section 1400C(h).”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of subchapters for chapter 1 is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="subchapter"><designator>“Subchapter W.</designator> <label>District of Columbia Enterprise Zone.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>Except as provided in subsection (c),<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s39">26 USC 39 note</ref>.</p></sidenote> the amendments made by this section shall take effect on the date of the enactment of this Act.</content> </subsection> </section> <num value="VIII">TITLE VIII—</num><heading>WELFARE-TO-WORK INCENTIVES</heading> <section> <num value="801">SEC. 801.</num> <heading>INCENTIVES FOR EMPLOYING LONG-TERM FAMILY ASSISTANCE RECIPIENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subpart F of part IV of subchapter A of chapter 1 is amended by inserting after section 51 the following new section: <quotedContent> <section> <num value="51A">“SEC. 51A.</num> <heading>TEMPORARY INCENTIVES FOR EMPLOYING LONG-TERM FAMILY ASSISTANCE RECIPIENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Determination of Amount</inline>.—</heading><chapeau>For purposes of section 38, the amount of the welfare-to-work credit determined under this section for the taxable year shall be equal to—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>35 percent of the qualified first-year wages for such year, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>50 percent of the qualified second-year wages for such year.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Qualified Wages Defined</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The term ‘qualified wages’ means the wages paid or incurred by the employer during the taxable year to individuals who are long-term family assistance recipients.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Qualified first-year wages</inline>.—</heading><content>The term ‘Qualified first-year wages’ means, with respect to any individual, qualified wages attributable to service rendered during the 1-year <page identifier="/us/stat/111/870">111 STAT. 870</page>period beginning with the day the individual begins work for the employer.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Qualified second-year wages</inline>.—</heading><content>The term ‘qualified second-year wages’ means, with respect to any individual, qualified wages attributable to service rendered during the 1-year period beginning on the day after the last day of the 1-year period with respect to such individual determined under paragraph (2).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Only first $10,000 of wages per year taken into account</inline>.—</heading><content>The amount of the qualified first-year wages, and the amount of qualified second-year wages, which may be taken into account with respect to any individual shall not exceed $10,000 per year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Wages</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The term ‘wages’ has the meaning given such term by section 51(c), without regard to paragraph (4) thereof.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Certain amounts treated as wages</inline>.—</heading><chapeau>The term ‘wages’ includes amounts paid or incurred by the employer which are excludable from such recipient’s gross income under—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>section 105 (relating to amounts received under accident and health plans),</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>section 106 (relating to contributions by employer to accident and health plans),</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>section 127 (relating to educational assistance programs) or would be so excludable but for section 127(d), but only to the extent paid or incurred to a person not related to the employer, or</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>section 129 (relating to dependent care assistance programs).</content></clause> <continuation class="indent0 fontsize10">The amount treated as wages by clause (i) or (ii) for any period shall be based on the reasonable cost of coverage for the period, but shall not exceed the applicable premium for the period under section 4980B(f)(4).</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Special rules for agricultural and railway labor</inline>.—</heading><chapeau>If such recipient is an employee to whom subparagraph (A) or (B) of section 51(h)(1) applies, rules similar to the rules of such subparagraphs shall apply except that—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>such subparagraph (A) shall be applied by substituting ‘$10,000’ for ‘$6,000’, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>such subparagraph (B) shall be applied by substituting ‘$833.33’ for ‘$500’.</content></clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Long-Term Family Assistance Recipients</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘long-term family assistance recipient’ means any individual who is certified by the designated local agency (as defined in section 51(d)(10))—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>as being a member of a family receiving assistance under a IV–A program (as defined in section 51(d)(2)(B)) for at least the 18-month period ending on the hiring date,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num><clause class="inline"><num value="i">(i)</num> <content>as being a member of a family receiving such assistance for 18 months beginning after the date of the enactment of this section, and<page identifier="/us/stat/111/871">111 STAT. 871</page></content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii)</num> <content>as having a hiring date which is not more than 2 years after the end of the earliest such 18-month period, or</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num><clause class="inline"><num value="i">(i)</num> <content>as being a member of a family which ceased to be eligible after the date of the enactment of this section for such assistance by reason of any limitation imposed by Federal or State law on the maximum period such assistance is payable to a family, and</content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii)</num> <content>as having a hiring date which is not more than 2 years after the date of such cessation.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Hiring date</inline>.—</heading><content>The term luring date’ has the meaning given such term by section 51(d).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Certain Rules To Apply</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Rules similar to the rules of section 52, and subsections (d)(11), (f, (g), (i) (as in effect on the day before the date of the enactment of the Taxpayer Relief Act of 1997), (j), and (k) of section 51, shall apply for purposes of this section.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Credit to be part of general business credit, etc</inline>.—</heading><content>References to section 51 in section 38(b), 280C(a), and 1396(c)(3) shall be treated as including references to this section.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Coordination With Work Opportunity Credit</inline>.—</heading><content>If a credit is allowed under this section to an employer with respect to an individual for any taxable year, then for purposes of applying section 51 to such employer, such individual shall not be treated as a member of a targeted group for such taxable year.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Termination</inline>.—</heading><content>This section shall not apply to individuals who begin work for the employer after April 30, 1999.”.</content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections for subpart F of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 51 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 51A.</designator> <label>Temporary incentives for employing long-term family assistance recipients.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s51A">26 USC 51A note</ref>.</p></sidenote> shall apply to individuals who begin work for the employer after December 31, 1997.</content> </subsection> </section> <num value="IX">TITLE IX—</num><heading>MISCELLANEOUS PROVISIONS</heading> <subtitle> <num value="A">Subtitle A—</num><heading>Provisions Relating to Excise Taxes</heading> <section> <num value="901">SEC. 901.</num> <heading>GENERAL REVENUE PORTION OF HIGHWAY MOTOR FUELS TAXES DEPOSITED INTO HIGHWAY TRUST FUND.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Paragraph (4) of section 9503(b) (relating to certain additional taxes not transferred to Highway Trust Fund) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Certain taxes not transferred to highway trust fund</inline>.—</heading><chapeau>For purposes of paragraphs (1) and (2), there shall not be taken into account the taxes imposed by—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>section 4041(d),<page identifier="/us/stat/111/872">111 STAT. 872</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>section 4081 to the extent attributable to the rate specified in section 4081(a)(2)(B),</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>section 4041 or 4081 to the extent attributable to fuel used in a train,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <chapeau>in the case of fuels used as described in paragraph (4)(D), (5)(B), or (6)(D) of subsection (c), section 4041 or 4081—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>with respect to so much of the rate of tax on gasoline or special motor fuels as exceeds 11.5 cents per gallon, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>with respect to so much of the rate of tax on diesel fuel or kerosene as exceeds 17.5 cents per gallon,</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>in the case of fuels described in section 4041(b)(2)(A), 4041(k), or 4081(c), section 4041 or 4081 before October 1, 1999, with respect to a rate equal to 2.5 cents per gallon, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>in the case of fuels described in section 4081(c)(2), such section before October 1, 1999, with respect to a rate equal to 2.8 cents per gallon.”.</content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Mass Transit Portion</inline>.—</heading><content>Section 9503(e)(2) (relating to transfers to Mass Transit Account) is amended by striking “<quotedText>2 cents</quotedText>” and inserting “<quotedText>2.85 cents</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Limitation on Expenditures</inline>.—</heading><content>Subsection (c) of section 9503 is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Limitation on expenditures</inline>.—</heading><content>Notwithstanding any other provision of law, in calculating amounts under section 157(a) of title 23, United States Code, and sections 1013(c), 1015(a), and 1015(b) of the Intermodal Surface Transportation Efficiency Act of 1991 (Public Law 102–240; 105 Stat. 1914), deposits in the Highway Trust Fund resulting from the amendments made by the Taxpayer Relief Act of 1997 shall not be taken into account.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Technical Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Section 9503 is amended by striking subsection (f).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>The last sentence of subparagraph (A) of section 9503(c)(2) is amended by striking “<quotedText>by taking into account only the Highway Trust Fund financing rate applicable to any fuel</quotedText>” and inserting “<quotedText>by taking into account only the portion of the taxes which are deposited into the Highway Trust Fund</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Paragraphs (4)(D), (5)(B), and (6)(D) of section 9503(c) are each amended by striking “<quotedText>attributable to the Highway Trust Fund financing rate</quotedText>” and inserting “<quotedText>deposited into the Highway Trust Fund</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6302">26 USC 6302 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Delayed Deposits of Highway Motor Fuel Tax Revenues</inline>.—</heading><content>Notwithstanding section 6302 of the Internal Revenue Code of 1986, in the case of deposits of taxes imposed by sections 4041 and 4081 (other than subsection (a)(2)(A)(ii)) of the Internal Revenue Code of 1986, the due date for any deposit which would (but for this subsection) be required to be made after July 31, 1998, and before October 1, 1998, shall be October 5, 1998.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s9503">26 USC 9503 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to taxes received in the Treasury after September 30, 1997.<page identifier="/us/stat/111/873">111 STAT. 873</page></content> </subsection> </section> <section> <num value="902">SEC. 902.</num> <heading>REPEAL OF TAX ON DIESEL FUEL USED IN RECREATIONAL BOATS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subparagraph (B) of section 6421(e)(2) (defining off-highway business use) is amended by striking clauses (iii) and (iv).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>Subparagraph (A) of section 4041(a)(1) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking a diesel-powered train, or a diesel-powered boat” each place it appears and inserting “<quotedText>or a diesel-powered train</quotedText>”, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking ‘Vehicle, train, or boat” and inserting “<quotedText>vehicle or train</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Paragraph (1) of section 4041(a) is amended by striking subparagraph (D).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Paragraph (3) of section 4083(a) is amended by striking “<quotedText>, a diesel-powered train, or a diesel-powered boat</quotedText>” and inserting “<quotedText>or a diesel-powered train</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4041">26 USC 4041 note</ref>.</p></sidenote> shall take effect on January 1, 1998</content> </subsection> </section> <section> <num value="903">SEC. 903.</num> <heading>CONTINUED APPLICATION OF TAX ON IMPORTED RECYCLED HALON-1211.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Paragraph (1) of section 4682(d) is amended by striking “<quotedText>recycled halon</quotedText>” and inserting “<quotedText>recycled Halon–1301 or recycled Halon–2402</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a)<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4682">26 USC 4682 note</ref>.</p></sidenote> shall take effect on the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="904">SEC. 904.</num> <heading>UNIFORM RATE OF TAX ON VACCINES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (b) of section 4131 is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Amount of Tax</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amount of the tax imposed by subsection (a) shall be 75 cents per dose of any taxable vaccine.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Combinations of vaccines</inline>.—</heading><content>If any taxable vaccine is described in more than 1 subparagraph of section 4132(a)(1), the amount of the tax imposed by subsection (a) on such vaccine shall be the sum of the amounts for the vaccines which are so included.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Taxable Vaccines</inline>.—</heading><content>Paragraph (1) of section 4132(a) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Taxable vaccine</inline>.—</heading><chapeau>The term ‘taxable vaccine’ means any of the following vaccines which are manufactured or produced in the United States or entered into the United States for consumption, use, or warehousing:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Any vaccine containing diphtheria toxoid.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Any vaccine containing tetanus toxoid.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>Any vaccine containing pertussis bacteria, extracted or partial cell bacteria, or specific pertussis antigens.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>Any vaccine against measles.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>Any vaccine against mumps.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>Any vaccine against rubella.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <content>Any vaccine containing polio virus.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num> <content>Any HIB vaccine.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="I">“(I)</num> <content>Any vaccine against hepatitis B.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="J">“(J)</num> <content>Any vaccine against chicken pox.”.<page identifier="/us/stat/111/874">111 STAT. 874</page></content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>Subsection (a) of section 4132 is amended by striking paragraphs (2), (3), (4), and (5) and by redesignating paragraphs (6) through (8) as paragraphs (2) through (4), respectively.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4131">26 USC 4131 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall take effect on the day after the date of the enactment of this Act.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4132">26 USC 4132 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Limitation on Certain Credits or Refunds</inline>.—</heading><content>For purposes of applying section 4132(b) of the Internal Revenue Code of 1986 with respect to any claim for credit or refund filed before January 1, 1999, the amount of tax taken into account shall not exceed the tax computed under the rate in effect on the day after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="905">SEC. 905.</num> <heading>OPERATORS OF MULTIPLE GASOLINE RETAIL OUTLETS TREATED AS WHOLESALE DISTRIBUTOR FOR REFUND PURPOSES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subparagraph (B) of section 6416(a)(4) (defining wholesale distributor) is amended by adding at the end the following new sentence: “Such term includes any person who makes retail sales of gasoline at 10 or more retail motor fuel outlets.”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6416">26 USC 6416 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall apply to sales after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="906">SEC. 906.</num> <heading>EXEMPTION OF ELECTRIC AND OTHER CLEAN-FUEL MOTOR VEHICLES FROM LUXURY AUTOMOBILE CLASSIFICATION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (a) of section 4001 (relating to imposition of tax) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Imposition of Tax</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>There is hereby imposed on the 1st retail sale of any passenger vehicle a tax equal to 10 percent of the price for which so sold to the extent such price exceeds the applicable amount.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Applicable amount</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in subparagraphs (B) and (C), the applicable amount is $30,000.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Qualified clean-fuel vehicle property</inline>.—</heading><chapeau>In the case of a passenger vehicle which is propelled by a fuel which is not a clean-burning fuel and to which is installed qualified clean-fuel vehicle property (as defined in section 179A(c)(1)(A)) for purposes of permitting such vehicle to be propelled by a clean-burning fuel, the applicable amount is equal to the sum of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the dollar amount in effect under subparagraph (A), plus</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the increase in the price for which the passenger vehicle was sold (within the meaning of section 4002) due to the installation of such property.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Purpose built passenger vehicle</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In the case of a purpose built passenger vehicle, the applicable amount is equal to 150 percent of the dollar amount in effect under subparagraph (A).</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Purpose built passenger vehicle</inline>.—</heading><content>For purposes of clause (i), the term ‘purpose built passenger vehicle’ means a passenger vehicle produced by an original equipment manufacturer and designed so that the vehicle may be propelled primarily by electricity.”.<page identifier="/us/stat/111/875">111 STAT. 875</page></content></clause> </subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Subsection (e) of section 4001 (relating to inflation adjustment) is amended by striking “<quotedText>and section 4003(a)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Subsection (f) of section 4001 (relating to phasedown) is amended by striking “<quotedText>subsection (a)</quotedText>” and inserting “<quotedText>subsection (a)(1)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Subparagraph (A) of section 4003(a)(1) is amended by inserting “<quotedText>(other than property described in section 4001(a)(2)(B))</quotedText>” after “part or accessory”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>Subparagraph (B) of section 4003(a)(2) is amended to read as follows: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the appropriate applicable amount as determined under section 4001(a)(2).”.</content></subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4001">26 USC 4001 note</ref>.</p></sidenote> shall apply to sales and installations occurring after the date of note the enactment of this Act.</content> </subsection> </section> <section> <num value="907">SEC. 907.</num> <heading>RATE OF TAX ON CERTAIN SPECIAL FUELS DETERMINED ON BASIS OF BTU EQUIVALENCY WITH GASOLINE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Special Motor Fuels</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Paragraph (2) of section 4041(a) (relating to special motor fuels) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Special motor fuels</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>There is hereby imposed a tax on any liquid (other than kerosene, gas oil, fuel oil, or any product taxable under section 4081)—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>sold by any person to an owner, lessee, or other operator of a motor vehicle or motorboat for use as a fuel in such motor vehicle or motorboat, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>used by any person as a fuel in a motor vehicle or motorboat unless there was a taxable sale of such liquid under clause (i).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Rate of tax</inline>.—</heading><chapeau>The rate of the tax imposed by this paragraph shall be—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>except as otherwise provided in this subparagraph, the rate of tax specified in section 4081(a)(2)(A)(i) which is in effect at the time of such sale or use,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>13.6 cents per gallon in the case of liquefied petroleum gas, and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>11.9 cents per gallon in the case of liquefied natural gas.</content></clause> <continuation class="indent0 fontsize10">In the case of any sale or use after September 30, 1999, clause (ii) shall be applied by substituting ‘3.2 cents’ for ‘13.6 cents’, and clause (iii) shall be applied by substituting ‘2.8 cents’ for ‘11.9 cents’.”.</continuation> </subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conforming amendment</inline>.—</heading><content>Paragraph (1) of section 4041(d) is amended by inserting “<quotedText>and other than liquefied natural gas</quotedText>” after “liquefied petroleum gas”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Methanol Fuel Produced From Natural Gas</inline>.—</heading><content>Subparagraph (A) of section 4041(m)(1) is amended to read as follows: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>the rate of the tax imposed by subsection (a)(2) shall be—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <chapeau>after September 30, 1997, and before October 1, 1999—<page identifier="/us/stat/111/876">111 STAT. 876</page></chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>in the case of fuel none of the alcohol in which consists of ethanol, 9.15 cents per gallon, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>in any other case, 11.3 cents per gallon, and</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>after September 30, 1999—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>in the case of fuel none of the alcohol in which consists of ethanol, 2.15 cents per gallon, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>in any other case, 4.3 cents per gallon, and”.</content></subclause> </clause> </subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4041">26 USC 4041 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall take effect on October 1, 1997.</content> </subsection> </section> <section> <num value="908">SEC. 908.</num> <heading>MODIFICATION OF TAX TREATMENT OF HARD CIDER.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Hard Cider Containing Less Than 7 Percent Alcohol Taxed as Wine</inline>.—</heading><content>Subsection (b) of section 5041 (relating to imposition and rate of tax) is amended by striking “<quotedText>and</quotedText>” at the end of paragraph (4), by striking the period at the end of paragraph (5) and inserting and”, and by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>On hard cider derived primarily from apples or apple concentrate and water, containing no other fruit product, and containing at least one-half of 1 percent and less than 7 percent alcohol by volume, 22.6 cents per wine gallon.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Application of Small Producer Credit</inline>.—</heading><content>Paragraph (1) of section 5041(c) (relating to credit for small domestic producers) is amended by adding at the end the following new sentence: “In the case of wine described in subsection (b)(6), the preceding sentence shall be applied by substituting ‘5.6 cents’ for ‘90 cents’.”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s5041">26 USC 5041 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall take effect on October 1, 1997.</content> </subsection> </section> <section> <num value="909">SEC. 909.</num> <heading>STUDY OF FEASIBILITY OF MOVING COLLECTION POINT FOR DISTILLED SPIRITS EXCISE TAX.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>The Secretary of the Treasury or his delegate shall conduct a study of options for changing the event on which the tax imposed by section 5001 of the Internal Revenue Code of 1986 is determined. One such option which shall be studied is determining such tax on removal from registered wholesale warehouses. In studying each such option, such Secretary shall focus on administrative issues including—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>tax compliance,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>the number of taxpayers required to pay the tax,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>the types of financial responsibility requirements that might be required, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>special requirements regarding segregation of non-tax-paid distilled spirits from other products.</content></paragraph> <continuation class="indent0 fontsize10">Such study shall review the effects of each such option on the Department of the Treasury (including staffing and other demands on budgetary resources) and the change in the period between the time such tax is currently paid and the time such tax would be paid under each such option.</continuation> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Report</inline>.—</heading><content>The report of such study shall be submitted to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives not later than March 31, 1998.<page identifier="/us/stat/111/877">111 STAT. 877</page></content> </subsection> </section> <section> <num value="910">SEC. 910.</num> <heading>CLARIFICATION OF AUTHORITY TO USE SEMI-GENERIC DESIGNATIONS ON WINE LABELS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 5388 (relating to designation of wines) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Use of Semi-Generic Designations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Semi-generic designations may be used to designate wines of an origin other than that indicated by such name only if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>there appears in direct conjunction therewith an appropriate appellation of origin disclosing the true place of origin of the wine, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the wine so designated conforms to the standard of identity, if any, for such wine contained in the regulations under this section or, if there is no such standard, to the trade understanding of such class or type.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Determination of whether name is semi-generic</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in subparagraph (B), a name of geographic significance, which is also the designation of a class or type of wine, shall be deemed to have become semi-generic only if so found by the Secretary.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Certain names treated as semi-generic</inline>.—</heading><content>The following names shall be treated as semi-generic: Angelica, Burgundy, Claret, Chablis, Champagne, Chianti, Malaga, Marsala, Madeira, Moselle, Port, Rhine Wine or Hock, Sauteme, Haut Sauteme, Sherry, Tokay.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s5388">26 USC 5388 note</ref>.</p></sidenote> shall take effect on the date of the enactment of this Act.</content> </subsection> </section> </subtitle> <subtitle> <num value="B">Subtitle B—</num><heading>Revisions Relating to Disasters</heading> <section> <num value="911">SEC. 911.</num> <heading>AUTHORITY TO POSTPONE CERTAIN TAX-RELATED DEADLINES BY REASON OF PRESIDENTIALLY DECLARED DISASTER.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Chapter 77 is amended by inserting after section 7508 the following new section: <quotedContent> <section> <num value="7508A">“SEC. 7508A.</num> <heading>AUTHORITY TO POSTPONE CERTAIN TAX-RELATED DEADLINES BY REASON OF PRESIDENTIALLY DECLARED DISASTER.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>In the case of a taxpayer determined by the Secretary to be affected by a Presidentially declared disaster (as defined by section 1033(h)(3)), the Secretary may prescribe regulations under which a period of up to 90 days may be disregarded in determining, under the internal revenue laws, in respect of any tax liability (including any penalty, additional amount, or addition to the tax) of such taxpayer—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>whether any of the acts described in paragraph (1) of section 7508(a) were performed within the time prescribed therefor, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the amount of any credit or refund.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Interest on Overpayments and Underpayments</inline>.—</heading><content>Subsection (a) shall not apply for the purpose of determining interest on any overpayment or underpayment.”.<page identifier="/us/stat/111/878">111 STAT. 878</page></content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections for chapter 77 is amended by inserting after the item relating to section 7508 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 7508A.</designator> <label>Authority to postpone certain tax-related deadlines by reason of presidentially declared disaster.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s7508A">26 USC 7508A note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply with respect to any period for performing an act that has not expired before the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="912">SEC. 912.</num> <heading>USE OF CERTAIN APPRAISALS TO ESTABLISH AMOUNT OF DISASTER LOSS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (i) of section 165 is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Use of disaster loan appraisals to establish amount of loss</inline>.—</heading><content>Nothing in this title shall be construed to prohibit the Secretary from prescribing regulations or other guidance under which an appraisal for the purpose of obtaining a loan of Federal funds or a loan guarantee from the Federal Government as a result of a Presidentially declared disaster (as defined by section 1033(h)(3)) may be used to establish the amount of any loss described in paragraph (1) or (2).”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s165">26 USC 165 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall take effect on the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="913">SEC. 913.</num> <heading>TREATMENT OF LIVESTOCK SOLD ON ACCOUNT OF WEATHER-RELATED CONDITIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Deferral of Income Inclusion</inline>.—</heading><chapeau>Subsection (e) of section 451 (relating to special rules for proceeds from livestock sold on account of drought) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>drought conditions, and that these drought conditions</quotedText>” in paragraph (1) and inserting “<quotedText>drought, flood, or other weather-related conditions, and that such conditions</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting “<quotedText>, Flood, or Other Weather-Related Conditions</quotedText>” after “Drought” in the subsection heading.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Involuntary Conversions</inline>.—</heading><chapeau>Subsection (e) of section 1033 (relating to livestock sold on account of drought) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by inserting “<quotedText>, flood, or other weather-related conditions</quotedText>” before the period at the end thereof; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting “<quotedText>, Flood, or Other Weather-Related Conditions</quotedText>” after “Drought” in the subsection heading.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s451">26 USC 451 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to sales and exchanges after December 31, 1996.</content> </subsection> </section> <section> <num value="914">SEC. 914.</num> <heading>MORTGAGE FINANCING FOR RESIDENCES LOCATED IN DISASTER AREAS.</heading> <content>Subsection (k) of section 143 (relating to mortgage revenue bonds; qualified mortgage bond and qualified veteran’s mortgage bond) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="11">“(11)</num> <heading><inline class="smallCaps">Special rules for residences located in disaster areas</inline>.—</heading><chapeau>In the case of a residence located in an area determined by the President to warrant assistance from the Federal Government under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (as in effect on the date of the enactment of the Taxpayer Relief Act of 1997), this section shall be applied with the following modifications to financing provided with respect to such residence within 2 years after the date of the disaster declaration:<page identifier="/us/stat/111/879">111 STAT. 879</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Subsection (d) (relating to 3-year requirement) shall not apply.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Subsections (e) and (f) (relating to purchase price requirement and income requirement) shall be applied as if such residence were a targeted area residence.</content></subparagraph> <continuation class="indent0 fontsize10">The preceding sentence shall apply only with respect to bonds<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> issued after December 31, 1996, and before January 1, 1999.”.</continuation> </paragraph> </quotedContent> </content></section> <section> <num value="915">SEC. 915.</num> <heading>ABATEMENT OF INTEREST ON UNDERPAYMENTS BY TAXPAYERS IN PRESIDENTIALLY DECLARED DISASTER AREAS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>If the Secretary of the Treasury extends<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s7508A">26 USC 7508A note</ref>.</p></sidenote> for any period the time for filing income tax returns under section 6081 of the Internal Revenue Code of 1986 and the time for paying income tax with respect to such returns under section 6161 of such Code (and waives any penalties relating to the failure to so file or so pay) for any individual located in a Presidentially declared disaster area, the Secretary shall, notwithstanding section 7508A(b) of such Code, abate for such period the assessment of any interest prescribed under section 6601 of such Code on such income tax.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Presidentially Declared Disaster Area</inline>.—</heading><content>For purposes of subsection (a), the term “Presidentially declared disaster area” means, with respect to any individual, any area which the President has determined during 1997 warrants assistance by the Federal Government under the Robert T. Stafford Disaster Relief and Emergency Assistance Act.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Individual</inline>.—</heading><content>For purposes of this section, the term “individual” shall not include any estate or trust.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>This section shall apply to disasters declared after December 31, 1996.</content> </subsection> </section> </subtitle> <subtitle> <num value="C">Subtitle C—</num><heading>Provisions Relating to Employment Taxes</heading> <section> <num value="921">SEC. 921.</num> <heading>CLARIFICATION OF STANDARD TO BE USED IN DETERMINING EMPLOYMENT TAX STATUS OF SECURITIES BROKERS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>In determining for purposes of the Internal Revenue Code of 1986 whether a registered representative of a securities broker-dealer is an employee (as defined in section 3121(d) of the Internal Revenue Code of 1986), no weight shall be given to instructions from the service recipient which are imposed only in compliance with investor protection standards imposed by the Federal Government, any State government, or a governing body pursuant to a delegation by a Federal or State agency.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>Subsection (a) shall apply to services performed after December 31, 1997.</content> </subsection> </section> <section> <num value="922">SEC. 922.</num> <heading>CLARIFICATION OF EXEMPTION FROM SELF-EMPLOYMENT TAX FOR CERTAIN TERMINATION PAYMENTS RECEIVED BY FORMER INSURANCE SALESMEN.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3121">26 USC 3121 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Internal Revenue Code</inline>.—</heading><content>Section 1402 (relating to definitions) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="k">“(k)</num> <heading><inline class="smallCaps">Codification of Treatment of Certain Termination Payments Received by Former Insurance Salesmen</inline>.—</heading><chapeau>Nothing in subsection (a) shall be construed as including in the net earnings <page identifier="/us/stat/111/880">111 STAT. 880</page>from self-employment of an individual any amount received during the taxable year from an insurance company on account of services performed by such individual as an insurance salesman for such company if—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>such amount is received after termination of such individual’s agreement to perform such services for such company,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>such individual performs no services for such company after such termination and before the close of such taxable year,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>such individual enters into a covenant not to compete against such company which applies to at least the 1-year period beginning on the date of such termination, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <chapeau>the amount of such payment—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>depends primarily on policies sold by or credited to the account of such individual during the last year of such agreement or the extent to which such policies remain in force for some period after such termination, or both, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>does not depend to any extent on length of service or overall earnings from services performed for such company (without regard to whether eligibility for payment depends on length of service).”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s411">42 USC 411</ref>.</p></sidenote> <heading><inline class="smallCaps">Social Security Act</inline>.—</heading><content>Section 211 of the Social Security Act is amended by adding at the end the following new subsection: <quotedContent> <level> <heading class="centered">“Codification of Treatment of Certain Termination Payments Received by Former Insurance Salesmen</heading> <subsection class="indent0 fontsize10"> <num value="j">“(j)</num> <chapeau>Nothing in subsection (a) shall be construed as including in the net earnings from self-employment of an individual any amount received during the taxable year from an insurance company on account of services performed by such individual as an insurance salesman for such company if—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>such amount is received after termination of such individual’s agreement to perform such services for such company,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>such individual performs no services for such company after such termination and before the close of such taxable year,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>such individual enters into a covenant not to compete against such company which applies to at least the 1-year period beginning on the date of such termination, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <chapeau>the amount of such payment—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>depends primarily on policies sold by or credited to the account of such individual during the last year of such agreement or the extent to which such policies remain in force for some period after such termination, or both, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>does not depend to any extent on length of service or overall earnings from services performed for such company (without regard to whether eligibility for payment depends on length of service).”.</content></subparagraph> </paragraph> </subsection> </level> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1402">26 USC 1402 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to payments after December 31, 1997.<page identifier="/us/stat/111/881">111 STAT. 881</page></content> </subsection> </section> </subtitle> <subtitle> <num value="D">Subtitle D—</num><heading>Provisions Relating to Small Businesses</heading> <section> <num value="931">SEC. 931.</num> <heading>WAIVER OF PENALTY THROUGH JUNE 30, 1998, ON SMALL BUSINESSES FAILING TO MAKE ELECTRONIC FUND TRANSFERS OF TAXES.</heading> <chapeau>No penalty shall be imposed under the Internal Revenue Code<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6302">26 USC 6302 note</ref>.</p></sidenote> of 1986 solely by reason of a failure by a person to use the electronic fund transfer system established under section 6302(h) of such Code if—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>such person is a member of a class of taxpayers first required to use such system on or after July 1, 1997, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>such failure occurs before July 1, 1998.</content></paragraph> </section> <section> <num value="932">SEC. 932.</num> <heading>CLARIFICATION OF TREATMENT OF HOME OFFICE USE FOR ADMINISTRATIVE AND MANAGEMENT ACTIVITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Paragraph (1) of section 280A(c) is amended by adding at the end the following new sentence: “For purposes of subparagraph (A), the term ‘principal place of business’ includes a place of business which is used by the taxpayer for the administrative or management activities of any trade or business of the taxpayer if there is no other fixed location of such trade or business where the taxpayer conducts substantial administrative or management activities of such trade or business.”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a)<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s280A">26 USC 280A note</ref>.</p></sidenote> shall apply to taxable years beginning after December 31, 1998.</content> </subsection> </section> <section> <num value="933">SEC. 933.</num> <heading>AVERAGING OF FARM INCOME OVER 3 YEARS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subchapter Q of chapter 1 (relating to readjustment of tax between years and special limitations) is amended by adding the following new part: <quotedContent> <part> <num value="I">“PART I—</num><heading>INCOME AVERAGING</heading> <toc> <referenceItem role="section"><designator>“Sec. 1301.</designator> <label>Averaging of farm income.</label></referenceItem> </toc> <section> <num value="1301">“SEC. 1301.</num> <heading>AVERAGING OF FARM INCOME.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>At the election of an individual engaged in a farming business, the tax imposed by section 1 for such taxable year shall be equal to the sum of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>a tax computed under such section on taxable income reduced by elected farm income, plus</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the increase in tax imposed by section 1 which would result if taxable income for each of the 3 prior taxable years were increased by an amount equal to one-third of the elected farm income.</content></paragraph> <continuation class="indent0 fontsize10">Any adjustment under this section for any taxable year shall be taken into account in applying this section for any subsequent taxable year.</continuation> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>In this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <chapeau>Elected farm income.—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘elected farm income’ means so much of the taxable income for the taxable year—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>which is attributable to any farming business; and<page identifier="/us/stat/111/882">111 STAT. 882</page></content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>which is specified in the election under subsection (a).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Treatment of gains</inline>.—</heading><content>For purposes of subparagraph (A), gain from the sale or other disposition of property (other than land) regularly used by the taxpayer in such a farming business for a substantial period shall be treated as attributable to such a farming business.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Individual</inline>.—</heading><content>The term ‘individual’ shall not include any estate or trust.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Farming business</inline>.—</heading><content>The term ‘farming business’ has the meaning given such term by section 263A(e)(4).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Regulations</inline>.—</heading><chapeau>The Secretary shall prescribe such regulations as may be appropriate to carry out the purposes of this section, including regulations regarding—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the order and manner in which items of income, gain, deduction, or loss, or limitations on tax, shall be taken into account in computing the tax imposed by this chapter on the income of any taxpayer to whom this section applies for any taxable year, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the treatment of any short taxable year.”.</content></paragraph> </subsection> </section> </part> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of parts for such subchapter Q is amended by inserting before the item relating to part II the following new item: <toc> <referenceItem role="part"><designator>“Part 1.</designator> <label>Income averaging.”.</label></referenceItem> </toc> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1301">26 USC 1301 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to taxable years beginning after December 31, 1997, and before January 1, 2001.</content> </subsection> </section> <section> <num value="934">SEC. 934.</num> <heading>INCREASE IN DEDUCTION FOR HEALTH INSURANCE COSTS OF SELF-EMPLOYED INDIVIDUALS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>The table contained in section 162(l)(1)(B) is amended to read as follows: <quotedContent> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <thead> <tr> <th style="text-align:left"><b xmlns="http://schemas.gpo.gov/xml/uslm">“For taxable years beginning in calendar year—</b></th> <th style="text-align:right"><b xmlns="http://schemas.gpo.gov/xml/uslm">The applicable percentage is—</b></th> </tr> </thead> <tbody> <tr> <td style="text-align:left" leaders="yes">1997</td> <td style="text-align:right">40</td> </tr> <tr> <td style="text-align:left" leaders="yes">1998 and 1999</td> <td style="text-align:right">45</td> </tr> <tr> <td style="text-align:left" leaders="yes">2000 and 2001</td> <td style="text-align:right">50</td> </tr> <tr> <td style="text-align:left" leaders="yes">2002</td> <td style="text-align:right">60</td> </tr> <tr> <td style="text-align:left" leaders="yes">2003 through 2005</td> <td style="text-align:right">80</td> </tr> <tr> <td style="text-align:left" leaders="yes">2006</td> <td style="text-align:right">90</td> </tr> <tr> <td style="text-align:left" leaders="yes">2007 and thereafter</td> <td style="text-align:right">100”.</td> </tr> </tbody> </table> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s162">26 USC 162 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section shall apply to taxable years beginning after December 31, 1996.</content> </subsection> </section> <section> <num value="935">SEC. 935.</num> <heading>MORATORIUM ON CERTAIN REGULATIONS.</heading> <content>No temporary or final regulation with respect to the definition of a limited partner under section 1402(a)(13) of the Internal Revenue Code of 1986 may be issued or made effective before July 1, 1998.</content> </section> </subtitle> <subtitle> <num value="E">Subtitle E—</num><heading>Brownfields</heading> <section> <num value="941">SEC. 941.</num> <heading>EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Part VI of subchapter B of chapter 1 is amended by adding at the end the following new section:<page identifier="/us/stat/111/883">111 STAT. 883</page> <quotedContent> <section> <num value="198">“SEC. 198.</num> <heading>EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>A taxpayer may elect to treat any qualified environmental remediation expenditure which is paid or incurred by the taxpayer as an expense which is not chargeable to capital account. Any expenditure which is so treated shall be allowed as a deduction for the taxable year in which it is paid or incurred.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Qualified Environmental Remediation Expenditure</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘qualified environmental remediation expenditure’ means any expenditure—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>which is otherwise chargeable to capital account, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>which is paid or incurred in connection with the abatement or control of hazardous substances at a qualified contaminated site.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Special rule for expenditures for depreciable property</inline>.—</heading><content>Such term shall not include any expenditure for the acquisition of property of a character subject to the allowance for depreciation which is used in connection with the abatement or control of hazardous substances at a Qualified contaminated site; except that the portion of the allowance under section 167 for such property which is otherwise allocated to such site shall be treated as a qualified environmental remediation expenditure.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Qualified Contaminated Site</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Qualified contaminated site</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘qualified contaminated site’ means any area—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>which is held by the taxpayer for use in a trade or business or for the production of income, or which is property described in section 1221(1) in the hands of the taxpayer,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>which is within a targeted area, and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>at or on which there has been a release (or threat of release) or disposal of any hazardous substance.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Taxpayer must receive statement from state environmental agency</inline>.—</heading><content>An area shall be treated as a qualified contaminated site with respect to expenditures paid or incurred during any taxable year only if the taxpayer receives a statement from the appropriate agency of the State in which such area is located that such area meets the requirements of clauses (ii) and (iii) of subparagraph (A).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Appropriate state agency</inline>.—</heading><content>For purposes of subparagraph (B), the chief executive officer of each State may, in consultation with the Administrator of the Environmental Protection Agency, designate the appropriate State environmental agency within 60 days of the date of the enactment of this section. If the chief executive officer of a State has not designated an appropriate State environmental agency within such 60-day period, the appropriate environmental agency for such State shall be designated by the Administrator of the Environmental Protection Agency.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Targeted area</inline>.—<page identifier="/us/stat/111/884">111 STAT. 884</page></heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘targeted area’ means—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>any population census tract with a poverty rate of not less than 20 percent,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>a population census tract with a population of less than 2,000 if—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>more than 75 percent of such tract is zoned for commercial or industrial use, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>such tract is contiguous to 1 or more other population census tracts which meet the requirement of clause (i) without regard to this clause,</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>any empowerment zone or enterprise community (and any supplemental zone designated on December 21, 1994), and</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>any site announced before February 1, 1997, as being included as a brownfields pilot project of the Environmental Protection Agency.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">National priorities listed sites not included</inline>.—</heading><content>Such term shall not include any site which is on, or proposed for, the national priorities list under section 105(a)(8)(B) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (as in effect on the date of the enactment of this section).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Certain rules to apply</inline>.—</heading><content>For purposes of this paragraph the rules of sections 1392(b)(4) and 1393(a)(9) shall apply.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Hazardous Substance</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘hazardous substance’ means—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>any substance which is a hazardous substance as defined in section 101(14) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>any substance which is designated as a hazardous substance under section 102 of such Act.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Exception</inline>.—</heading><content>Such term shall not include any substance with respect to which a removal or remedial action is not permitted under section 104 of such Act by reason of subsection (a)(3) thereof.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Deduction Recaptured as Ordinary Income on Sale, Etc</inline>.—</heading><chapeau>Solely for purposes of section 1245, in the case of property to which a qualified environmental remediation expenditure would have been capitalized but for this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the deduction allowed by this section for such expenditure shall be treated as a deduction for depreciation, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>such property (if not otherwise section 1245 property) shall be treated as section 1245 property solely for purposes of applying section 1245 to such deduction.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Coordination With Other Provisions</inline>.—</heading><content>Sections 280B and 468 shall not apply to amounts which are treated as expenses under this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Regulations</inline>.—</heading><content>The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Termination</inline>.—</heading><content>This section shall not apply to expenditures paid or incurred after December 31, 2000.”.<page identifier="/us/stat/111/885">111 STAT. 885</page></content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections for part VI of subchapter B of chapter 1 is amended by adding at the end the following new item: <quotedContent> <referenceItem role="section"><designator>“Sec. 198.</designator> <label>Expensing of environmental remediation costs.”.</label></referenceItem> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s198">26 USC 198 note</ref></p></sidenote> shall apply to expenditures paid or incurred after the date of the enactment of this Act, in taxable years ending after such date.</content> </subsection> </section> </subtitle> <subtitle> <num value="F">Subtitle F—</num><heading>Empowerment Zones, Enterprise Communities, Brownfields, and Community Development Financial Institutions</heading> <chapter> <num value="1">CHAPTER 1—</num><heading>ADDITIONAL EMPOWERMENT ZONES</heading> <section> <num value="951">SEC. 951.</num> <heading>ADDITIONAL EMPOWERMENT ZONES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Paragraph (2) of section 1391(b) (relating to designations of empowerment zones and enterprise communities) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>9</quotedText>” and inserting “<quotedText>11</quotedText>”,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<quotedText>6</quotedText>” and inserting “<quotedText>8</quotedText>”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by striking “<quotedText>750,000</quotedText>” and inserting “<quotedText>1,000,000</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Special Rules for Application of Employment Credit</inline>.—</heading><chapeau>Subsection (b) of section 1396 (relating to empowerment zone employment credit) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking so much of the subsection as precedes the table and inserting the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Applicable Percentage</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in paragraph (2), the term ‘applicable percentage’ means the percentage determined in accordance with the following table:”, and</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Special rule</inline>.—</heading><content>With respect to each empowerment zone designated pursuant to the amendments made by the Taxpayer Relief Act of 1997 to section 1391(b)(2), the following table shall apply in lieu of the table in paragraph (1): <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <thead> <tr> <th style="text-align:left"><b xmlns="http://schemas.gpo.gov/xml/uslm">“In the case of wages paid or incurred during calendar year—</b></th> <th style="text-align:right"><b xmlns="http://schemas.gpo.gov/xml/uslm">The applicable percentage is—</b></th> </tr> </thead> <tbody> <tr> <td style="text-align:left" leaders="yes">2000 through 2004</td> <td style="text-align:right">20</td> </tr> <tr> <td style="text-align:left" leaders="yes">2005</td> <td style="text-align:right">15</td> </tr> <tr> <td style="text-align:left" leaders="yes">2006</td> <td style="text-align:right">10</td> </tr> <tr> <td style="text-align:left" leaders="yes">2007</td> <td style="text-align:right">5.”.</td> </tr> </tbody> </table> </content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1391">26 USC 1391 note</ref>.</p></sidenote> shall take effect on the date of the enactment of this Act, except that designations of new empowerment zones made pursuant to such amendments shall be made during the 180-day period beginning on the date of the enactment of this Act. No designation pursuant to such amendments shall take effect before January 1, 2000.<page identifier="/us/stat/111/886">111 STAT. 886</page></content> </subsection> </section> </chapter> <chapter> <num value="2">CHAPTER 2—</num><heading>NEW EMPOWERMENT ZONES</heading> <section> <num value="952">SEC. 952.</num> <heading>DESIGNATION OF NEW EMPOWERMENT ZONES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 1391 (relating to designation procedure for empowerment zones and enterprise communities) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Additional Designations Permitted</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In addition to the areas designated under subsection (a), the appropriate Secretaries may designate in the aggregate an additional 20 nominated areas as empowerment zones under this section, subject to the availability of eligible nominated areas. Of that number, not more than 15 may be designated in urban areas and not more than 5 may be designated in rural areas.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Period designations may be made and take effect</inline>.—</heading><content>A designation may be made under this subsection after the date of the enactment of this subsection and before January 1, 1999.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Modifications to eligibility criteria, etc</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Poverty rate requirement</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>A nominated area shall be eligible for designation under this subsection only if the poverty rate for each population census tract within the nominated area is not less than 20 percent and the poverty rate for at least 90 percent of the population census tracts within the nominated area is not less than 25 percent.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Treatment of census tracts with small populations</inline>.—</heading><chapeau>A population census tract with a population of less than 2,000 shall be treated as having a poverty rate of not less than 25 percent if—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>more than 75 percent of such tract is zoned for commercial or industrial use, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>such tract is contiguous to 1 or more other population census tracts which have a poverty rate of not less than 25 percent (determined without regard to this clause).</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Exception for developable sites</inline>.—</heading><content>Clause (i) shall not apply to up to 3 noncontiguous parcels in a nominated area which may be developed for commercial or industrial purposes. The aggregate area of noncontiguous parcels to which the preceding sentence applies with respect to any nominated area shall not exceed 2,000 acres.</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <heading><inline class="smallCaps">Certain provisions not to apply</inline>.—</heading><content>Section 1392(a)(4) (and so much of paragraphs (1) and (2) of section 1392(b) as relate to section 1392(a)(4)) shall not apply to an area nominated for designation under this subsection.</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <heading><inline class="smallCaps">Special rule for rural empowerment zone</inline>.—</heading><content>The Secretary of Agriculture may designate not more than 1 empowerment zone in a rural area without regard to clause (i) if such area satisfies emigration criteria specified by the Secretary of Agriculture.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Size limitation</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The parcels described in subparagraph (A)(iii) shall not be taken into account <page identifier="/us/stat/111/887">111 STAT. 887</page>in determining whether the requirement of subparagraph (A) or (B) of section 1392(a)(3) is met.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Special rule for rural areas</inline>.—</heading><content>If a population census tract (or equivalent division under section 1392(b)(4)) in a rural area exceeds 1,000 square miles or includes a substantial amount of land owned by the Federal, State, or local government, the nominated area may exclude such excess square mileage or governmentally owned land and the exclusion of that area will not be treated as violating the continuous boundary requirement of section 1392(a)(3)(B).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Aggregate population limitation</inline>.—</heading><content>The aggregate population limitation under the last sentence of subsection (b)(2) shall not apply to a designation under paragraph (1)(B).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Previously designated enterprise communities may be included</inline>.—</heading><content>Subsection (e)(5) shall not apply to any enterprise community designated under subsection (a) that is also nominated for designation under this subsection.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Indian reservations may be nominated</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 1393(a)(4) shall not apply to an area nominated for designation under this subsection.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Special rule</inline>.—</heading><content>An area in an Indian reservation shall be treated as nominated by a State and a local government if it is nominated by the reservation governing body (as determined by the Secretary of Interior)”.</content></clause> </subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Employment Credit Not To Apply to New Empowerment Zones</inline>.—</heading><content>Section 1396 (relating to empowerment zone employment credit) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Credit Not To Apply to Empowerment Zones Designated Under Section 1391(g)</inline>.—</heading><content>This section shall be applied without regard to any empowerment zone designated under section 1391(g).”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Increased Expensing Under Section 179 Not To Apply in Developable Sites</inline>.—</heading><content>Section 1397A (relating to increase in expensing under section 179) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Limitation</inline>.—</heading><content>For purposes of this section, qualified zone property shall not include any property substantially all of the use of which is in any parcel described in section 1391(g)(3)(A)(iii).”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Subsections (e) and (f) of section 1391 are each amended by striking “<quotedText>subsection (a)</quotedText>” and inserting “<quotedText>this section</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Section 1391(c) is amended by striking “<quotedText>this section</quotedText>” and inserting “<quotedText>subsection (a)</quotedText>”.</content></paragraph> </subsection> </section> <section> <num value="953">SEC. 953.</num> <heading>VOLUME CAP NOT TO APPLY TO ENTERPRISE ZONE FACILITY BONDS WITH RESPECT TO NEW EMPOWERMENT ZONES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 1394 (relating to tax-exempt enterprise zone facility bonds) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Bonds for Empowerment Zones Designated Under Section 1391(g)</inline>.—<page identifier="/us/stat/111/888">111 STAT. 888</page></heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of a new empowerment zone facility bond—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>such bond shall not be treated as a private activity bond for purposes of section 146, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>subsection (c) of this section shall not apply.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Limitation on amount of bonds</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Paragraph (1) shall apply to a new empowerment zone facility bond only if such bond is designated for purposes of this subsection by the local government which nominated the area to which such bond relates.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Limitation on bonds designated</inline>.—</heading><chapeau>The aggregate face amount of bonds which may be designated under subparagraph (A) with respect to any empowerment zone shall not exceed—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>$60,000,000 if such zone is in a rural area,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>$130,000,000 if such zone is in an urban area and the zone has a population of less than 100,000, and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>$230,000,000 if such zone is in an urban area and the zone has a population of at least 100,000.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Special rules</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Coordination with limitation in subsection (c)</inline>.—</heading><content>Bonds to which paragraph (1) applies shall not be taken into account in applying the limitation of subsection (c) to other bonds.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Current refunding not taken into account</inline>.—</heading><chapeau>In the case of a refunding (or series of refundings) of a bond designated under this paragraph, the refunding obligation shall be treated as designated under this paragraph (and shall not be taken into account in applying subparagraph (B)) if—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the amount of the refunding bond does not exceed the outstanding amount of the refunded bond, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the refunded bond is redeemed not later than 90 days after the date of issuance of the refunding bond.</content></subclause> </clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">New empowerment zone facility bond</inline>.—</heading><content>For purposes of this subsection, the term ‘new empowerment zone facility bond’ means any bond which would be described in subsection (a) if only empowerment zones designated under section 1391(g) were taken into account under sections 1397B and 1397C”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1394">26 USC 1394 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section shall apply to obligations issued after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="964">SEC. 964.</num> <heading>MODIFICATION TO ELIGIBILITY CRITERIA FOR DESIGNATION OF FUTURE ENTERPRISE ZONES IN ALASKA OR HAWAII.</heading> <content>Section 1392 (relating to eligibility criteria) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <content>Special Eligibility for Nominated Areas Located in Alaska or Hawaii.—A nominated area in Alaska or Hawaii shall be treated as meeting the requirements of paragraphs (2), (3), and (4) of subsection (a) if for each census tract or block group within such area 20 percent or more of the families have income <page identifier="/us/stat/111/889">111 STAT. 889</page>which is 50 percent or less of the statewide median family income (as determined under section 143).”.</content> </subsection> </quotedContent> </content></section> </chapter> <chapter> <num value="3">CHAPTER 3—</num><heading>TREATMENT OF EMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES</heading> <section> <num value="955">SEC. 955.</num> <heading>MODIFICATIONS TO ENTERPRISE ZONE FACILITY BOND RULES FOR ALL EMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Modifications Relating to Enterprise Zone Business</inline>.—</heading><content>Paragraph (3) of section 1394(b) (defining enterprise zone business) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Enterprise zone business</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as modified in this paragraph, the term ‘enterprise zone business’ has the meaning given such term by section 1397B.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Modifications</inline>.—</heading><chapeau>In applying section 1397B for purposes of this section—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Businesses in enterprise communities eligible</inline>.—</heading><content>References in section 1397B to empowerment zones shall be treated as including references to enterprise communities.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Waiver of requirements during startup period</inline>.—</heading><chapeau>A business shall not fail to be treated as an enterprise zone business during the startup period if—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>as of the beginning of the startup period, it is reasonably expected that such business will be an enterprise zone business (as defined in section 1397B as modified by this paragraph) at the end of such period, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>such business makes bona fide efforts to be such a business.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Reduced requirements after testing period</inline>.—</heading><content>A business shall not fail to be treated as an enterprise zone business for any taxable year beginning after the testing period by reason of failing to meet any requirement of subsection (b) or (c) of section 1397B if at least 35 percent of the employees of such business for such year are residents of an empowerment zone or an enterprise community. The preceding sentence shall not apply to any business which is not a qualified business by reason of paragraph (1), (4), or (5) of section 1397B(a).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Definitions relating to subparagraph (b)</inline>.—</heading><chapeau>For purposes of subparagraph (B)—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Startup period</inline>.—</heading><chapeau>The term ‘startup period’ means, with respect to any property being provided for any business, the period before the first taxable year beginning more than 2 years after the later of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the date of issuance of the issue providing such property, or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the date such property is first placed in service after such issuance (or, if earlier, the date which is 3 years after the date described in subclause (I)).<page identifier="/us/stat/111/890">111 STAT. 890</page></content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Testing period</inline>.—</heading><content>The term ‘testing period’ means the first 3 taxable years beginning after the startup period.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Portions of business may be enterprise zone business</inline>.—</heading><content>The term ‘enterprise zone business’ includes any trades or businesses which would qualify as an enterprise zone business (determined after the modifications of subparagraph (B)) if such trades or businesses were separately incorporated.”.</content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Modifications Relating to Qualified Zone Property</inline>.—</heading><content>Paragraph (2) of section 1394(b) (defining qualified zone property) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Qualified zone property</inline>.—</heading><chapeau>The term ‘qualified zone property’ has the meaning given such term by section 1397C; except that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the references to empowerment zones shall be treated as including references to enterprise communities, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>section 1397C(a)(2) shall be applied by substituting ‘an amount equal to 15 percent of the adjusted basis’ for ‘an amount equal to the adjusted basis’.”.</content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1394">26 USC 1394 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="956">SEC. 956.</num> <heading>MODIFICATIONS TO ENTERPRISE ZONE BUSINESS DEFINITION FOR ALL EMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 1397B (defining enterprise zone business) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>80 percent</quotedText>” in subsections (b)(2) and (c)(1) and inserting “<quotedText>50 percent</quotedText>”,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<quotedText>substantially all</quotedText>” each place it appears in subsections (b) and (c) and inserting “<quotedText>a substantial portion</quotedText>”,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by striking “<quotedText>, and exclusively related to,</quotedText>” in subsections (b)(4) and (c)(3),</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>by adding at the end of subsection (d)(2) the following new flush sentence: <quotedContent> <p class="indent0 fontsize10">“For purposes of subparagraph (B), the lessor of the property may rely on a lessee’s certification that such lessee is an enterprise zone business.”,</p> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>by striking “<quotedText>substantially all</quotedText>” in subsection (d)(3) and inserting “<quotedText>at least 50 percent</quotedText>”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Treatment of Businesses Straddling Census Tract Lines</inline>.—</heading><chapeau>For purposes of this section, if—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>a business entity or proprietorship uses real property located within an empowerment zone,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the business entity or proprietorship also uses real property located outside the empowerment zone,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>the amount of real property described in paragraph (1) is substantial compared to the amount of real property described in paragraph (2), and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>the real property described in paragraph (2) is contiguous to part or all of the real property described in paragraph (1),<page identifier="/us/stat/111/891">111 STAT. 891</page></content></paragraph> <continuation class="indent0 fontsize10">then all the services performed by employees, all business activities, all tangible property, and all intangible property of the business entity or proprietorship that occur in or is located on the real property described in paragraphs (1) and (2) shall be treated as occurring or situated in an empowerment zone.”.</continuation> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1397B">26 USC 1397B note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendments made by this section shall apply to taxable years beginning on or after the date of the enactment of this Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Special rule for enterprise zone facility bonds</inline>.—</heading><content>For purposes of section 1394(b) of the Internal Revenue Code of 1986, the amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.</content></paragraph> </subsection> </section> </chapter> </subtitle> <subtitle> <num value="G">Subtitle G—</num><heading>Other Provisions</heading> <section> <num value="961">SEC. 961.</num> <heading>USE OF ESTIMATES OF SHRINKAGE FOR INVENTORY ACCOUNTING.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 471 (relating to general rule for inventories) is amended by redesignating subsection (b) as subsection (c) and by inserting after subsection (a) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <chapeau>Estimates of Inventory Shrinkage Permitted.—A method of determining inventories shall not be treated as failing to clearly reflect income solely because it utilizes estimates of inventory shrinkage that are confirmed by a physical count only after the last day of the taxable year if—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the taxpayer normally does a physical count of inventories at each location on a regular and consistent basis, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the taxpayer makes proper adjustments to such inventories and to its estimating methods to the extent such estimates are greater than or less than the actual shrinkage.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s471">26 USC 471 note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendment made by this section shall apply to taxable years ending after the date of the enactment of this Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Coordination with section 481</inline>.—</heading><chapeau>In the case of any taxpayer permitted by this section to change its method of accounting to a permissible method for any taxable year—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>such changes shall be treated as initiated by the taxpayer,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>such changes shall be treated as made with the consent of the Secretary of the Treasury, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>the period for taking into account the adjustments under section 481 by reason of such change shall be 4 years.</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="962">SEC. 962.</num> <heading>ASSIGNMENT OF WORKMEN’S COMPENSATION LIABILITY ELIGIBLE FOR EXCLUSION RELATING TO PERSONAL INJURY LIABILITY ASSIGNMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Subsection (c) of section 130 (relating to certain personal injury liability assignments) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by inserting “<quotedText>, or as compensation under any workmen’s compensation act,</quotedText>” after “(whether by suit or agreement)” in the material preceding paragraph (1),<page identifier="/us/stat/111/892">111 STAT. 892</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting “<quotedText>or the workmen’s compensation claim,</quotedText>” after “agreement,” in paragraph (1), and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by striking “<quotedText>section 104(a)(2)</quotedText>” in paragraph (2)(D) and inserting “<quotedText>paragraph (1) or (2) of section 104(a)</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s130">26 USC 130 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by subsection (a) shall apply to claims under workmen’s compensation acts filed after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="963">SEC. 963.</num> <heading>TAX-EXEMPT STATUS FOR CERTAIN STATE WORKER’S COMPENSATION ACT COMPANIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 501(c)(27) (relating to membership organizations under workmen’s compensation acts) is amended by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>Any organization (including a mutual insurance company) if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <chapeau>such organization is created by State law and is organized and operated under State law exclusively to—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>provide workmen’s compensation insurance which is required by State law or with respect to which State law provides significant disincentives if such insurance is not purchased by an employer, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>provide related coverage which is incidental to workmen’s compensation insurance,</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>such organization must provide workmen’s compensation insurance to any employer in the State (for employees in the State or temporarily assigned out-of-State) which seeks such insurance and meets other reasonable requirements relating thereto,</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num><subclause class="inline"><num value="I">(I)</num> <content>the State makes a financial commitment with respect to such organization either by extending the full faith and credit of the State to the initial debt of such organization or by providing the initial operating capital of such organization, and (II) in the case of periods after the date of enactment of this subparagraph, the assets of such organization revert to the State upon dissolution or State law does not permit the dissolution of such organization, and</content></subclause></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>the majority of the board of directors or oversight body of such organization are appointed by the chief executive officer or other executive branch official of the State, by the State legislature, or by both.”.</content></clause> </subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><content>Section 501(c)(27) is amended by inserting “<quotedText>(A)</quotedText>” after “(27)”, by redesignating subparagraphs (A), (B), and (C) as clauses (i), (ii), and (iii), respectively, and by redesignating clauses (i) and (ii) of subparagraphs (B) and (C) (before redesignation) as subclauses (I) and (II), respectively.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s501">26 USC 501 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to taxable years beginning after December 31, 1997.</content> </subsection> </section> <section> <num value="964">SEC. 964.</num> <heading>ELECTION FOR 1987 PARTNERSHIPS TO CONTINUE EXCEPTION FROM TREATMENT OF PUBLICLY TRADED PARTNERSHIPS AS CORPORATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 7704 is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Exception for Electing 1987 Partnerships</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subsection (a) shall not apply to an electing 1987 partnership.<page identifier="/us/stat/111/893">111 STAT. 893</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Electing 1987 partnership</inline>.—</heading><chapeau>For purposes of this subsection, the term ‘electing 1987 partnerships means any publicly traded partnership if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>such partnership is an existing partnership (as defined in section 10211(c)(2) of the Revenue Reconciliation Act of 1987),</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>subsection (a) has not applied (and without regard to subsection (c)(1) would not have applied) to such partnership for all prior taxable years beginning after December 31, 1987, and before January 1, 1998, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>such partnership elects the application of this subsection, and consents to the application of the tax imposed by paragraph (3), for its first taxable year beginning after December 31, 1997.</content></subparagraph> <continuation class="indent0 fontsize10">A partnership which, but for this sentence, would be treated as an electing 1987 partnership shall cease to be so treated (and the election under subparagraph (C) shall cease to be in effect) as of the 1st day after December 31, 1997, on which there has been an addition of a substantial new line of business with respect to such partnership.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Additional tax on electing partnerships</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Imposition of tax</inline>.—</heading><content>There is hereby imposed for each taxable year on the income of each electing 1987 partnership a tax equal to 3.5 percent of such partnership’s gross income for the taxable year from the active conduct of trades and businesses by the partnership.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Adjustments in the case of tiered partnerships</inline>.—</heading><content>For purposes of this paragraph, in the case of a partnership which is a partner in another partnership, the gross income referred to in subparagraph (A) shall include the partnership’s distributive share of the gross income of such other partnership from the active conduct of trades and businesses of such other partnership. A similar rule shall apply in the case of lower-tiered partnerships.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Treatment of tax</inline>.—</heading><content>For purposes of this title, the tax imposed by this paragraph shall be treated as imposed by chapter 1 other than for purposes of determining the amount of any credit allowable under chapter 1.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Election</inline>.—</heading><content>An election and consent under this subsection shall apply to the taxable year for which made and all subsequent taxable years unless revoked by the partnership. Such revocation may be made without the consent of the Secretary, but, once so revoked, may not be reinstated.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s7704">26 USC 7704 note</ref>.</p></sidenote> shall apply to taxable years beginning after December 31, 1997. </content> </subsection> </section> <section> <num value="965">SEC. 965.</num> <heading>EXCLUSION FROM UNRELATED BUSINESS TAXABLE INCOME FOR CERTAIN SPONSORSHIP PAYMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 513 (relating to unrelated trade or business income) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="i">“(i)</num> <heading><inline class="smallCaps">Treatment of Certain Sponsorship Payments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The term ‘unrelated trade or business’ does not include the activity of soliciting and receiving qualified sponsorship payments.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Qualified sponsorship payments</inline>.—</heading><chapeau>For purposes of this subsection—<page identifier="/us/stat/111/894">111 STAT. 894</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The term ‘qualified sponsorship payment’ means any payment made by any person engaged in a trade or business with respect to which there is no arrangement or expectation that such person will receive any substantial return benefit other than the use or acknowledgement of the name or logo (or product lines) of such person’s trade or business in connection with the activities of the organization that receives such payment. Such a use or acknowledgement does not include advertising such person’s products or services (including messages containing qualitative or comparative language, price information, or other indications of savings or value, an endorsement, or an inducement to purchase, sell, or use such products or services).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Limitations</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Contingent payments</inline>.—</heading><content>The term ‘qualified sponsorship payment’ does not include any payment if the amount of such payment is contingent upon the level of attendance at one or more events, broadcast ratings, or other factors indicating the degree of public exposure to one or more events.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Safe harbor does not apply to periodicals and qualified convention and trade show activities</inline>.—</heading><chapeau>The term ‘qualified sponsorship payment’ does not include—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>any payment which entitles the payor to the use or acknowledgement of the name or logo (or product lines) of the payor’s trade or business in regularly scheduled and printed material published by or on behalf of the payee organization that is not related to and primarily distributed in connection with a specific event conducted by the payee organization, or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>any payment made in connection with any qualified convention or trade show activity (as defined in subsection (d)(3)(B)).</content></subclause> </clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Allocation of portions of single payment</inline>.—</heading><content>For purposes of this subsection, to the extent that a portion of a payment would (if made as a separate payment) be a qualified sponsorship payment, such portion of such payment and the other portion of such payment shall be treated as separate payments.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s513">26 USC 513 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section shall apply to payments solicited or received after December 31, 1997.</content> </subsection> </section> <section> <num value="966">SEC. 966.</num> <heading>ASSOCIATIONS OF HOLDERS OF TIMESHARE INTERESTS TO BE TAXED LIKE OTHER HOMEOWNERS ASSOCIATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Timeshare Associations Included as Homeowner Associations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Paragraph (1) of section 528(c) (defining homeowners association) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>or a residential real estate management association</quotedText>” and inserting a residential real estate management association, or a timeshare association” in the material preceding subparagraph (A),<page identifier="/us/stat/111/895">111 STAT. 895</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking “<quotedText>or</quotedText>” at the end of clause (i) of subparagraph (B), by striking the period at the end of clause (ii) of subparagraph (B) and inserting “<quotedText>, or</quotedText>”, and by adding at the end of subparagraph (B) the following new clause: <quotedContent> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>owners of timeshare rights to use, or timeshare ownership interests in, association property in the case of a timeshare association,”, and</content></clause> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by inserting “<quotedText>and, in the case of a timeshare association, for activities provided to or on behalf of members of the association</quotedText>” before the comma at the end of subparagraph (C).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Timeshare association defined</inline>.—</heading><content>Subsection (c) of section 528 is amended by redesignating paragraph (4) as paragraph (5) and by inserting after paragraph (3) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Timeshare association</inline>.—</heading><content>The term ‘timeshare association’ means any organization (other than a condominium management association) meeting the requirement of subparagraph (A) of paragraph (1) if any member thereof holds a timeshare right to use, or a timeshare ownership interest in, real property constituting association property.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Exempt Function Income</inline>.—</heading><content>Paragraph (3) of section 528(d) is amended by striking “<quotedText>or</quotedText>” at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting “<quotedText>, or</quotedText>”, and by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>owners of timeshare rights to use, or timeshare ownership interests in, real property in the case of a timeshare association.”.</content></subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Association Property</inline>.—</heading><content>Paragraph (5) of section 528(c), as redesignated by subsection (a)(2), is amended by adding at the end the following new flush sentence: <quotedContent> <p class="indent0 fontsize10">“In the case of a timeshare association, such term includes property in which the timeshare association, or members of the association, have rights arising out of recorded easements, covenants, or other recorded instruments to use property related to the timeshare project.”.</p> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Rate of Tax</inline>.—</heading><content>Subsection (b) of section 528 (relating to certain homeowners associations) is amended by inserting before the period “(32 percent of such income in the case of a timeshare association)”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s528">26 USC 528 note</ref>.</p></sidenote> shall apply to taxable years beginning after December 31, 1996.</content> </subsection> </section> <section> <num value="967">SEC. 967.</num> <heading>ADDITIONAL ADVANCE REFUNDING OF CERTAIN VIRGIN ISLAND BONDS.</heading> <content>Subclause (I) of section 149(d)(3)(A)(i) of the Internal Revenue Code of 1986 shall not apply to the second advance refunding of any issue of the Virgin Islands which was first advance refunded before June 9, 1997, if the debt provisions of the refunding bonds are changed to repeal the priority first lien requirement of the refunded bonds.</content> </section> <section> <num value="968">SEC. 968.</num> <heading>NONRECOGNITION OF GAIN ON SALE OF STOCK TO CERTAIN FARMERS’ COOPERATIVES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 1042 (relating to sales of stock to employee stock ownership plans or certain cooperatives) is amended by adding at the end the following new subsection:<page identifier="/us/stat/111/896">111 STAT. 896</page> <quotedContent> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Application of Section to Sales of Stock in Agricultural Refiners and Processors to Eligible Farm Cooperatives</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>This section shall apply to the sale of stock of a qualified refiner or processor to an eligible farmers’ cooperative.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Qualified refiner or processor</inline>—</heading><chapeau>For purposes of this subsection, the term ‘qualified refiner or processor’ means a domestic corporation—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>substantially all of the activities of which consist of the active conduct of the trade or business of refining or processing agricultural or horticultural products, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>which, during the 1-year period ending on the date of the sale, purchases more than one-half of such products to be refined or processed from—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>farmers who make up the eligible farmers’ cooperative which is purchasing stock in the corporation in a transaction to which this subsection is to apply, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>such cooperative.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Eligible farmers’ cooperative</inline>.—</heading><content>For purposes of this section, the term ‘eligible farmers’ cooperative’ means an organization to which part I of subchapter T applies and which is engaged in the marketing of agricultural or horticultural products.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Special rules</inline>.—</heading><chapeau>In applying this section to a sale to which paragraph (1) applies—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the eligible farmers’ cooperative shall be treated in the same manner as a cooperative described in subsection (b)(1)(B),</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>subsection (b)(2) shall be applied by substituting ‘100 percent’ for ‘30 percent’ each place it appears,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>the determination as to whether any stock in the domestic corporation is a qualified security shall be made without regard to whether the stock is an employer security or to subsection (c)(1)(A), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>paragraphs (2)(D) and (7) of subsection (c) shall not apply.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1042">26 USC 1042 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section shall apply to sales after December 31, 1997.</content> </subsection> </section> <section> <num value="969">SEC. 969.</num> <heading>INCREASED DEDUCTIBILITY OF BUSINESS MEAL EXPENSES FOR INDIVIDUALS SUBJECT TO FEDERAL HOURS OF SERVICE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 274(n) (relating to only 50 percent of meal and entertainment expenses allowed as deduction) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Special rule for individuals subject to federal hours of service</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In the case of any expenses for food or beverages consumed while away from home (within the meaning of section 162(a)(2)) by an individual during, or incident to, the period of duty subject to the hours of service limitations of the Department of Transportation, paragraph (1) shall be applied by substituting ‘the applicable percentage’ for ‘50 percent’.<page identifier="/us/stat/111/897">111 STAT. 897</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Applicable percentage</inline>.—</heading><content>For purposes of this paragraph, the term ‘applicable percentage’ means the percentage determined under the following table: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <thead> <tr> <th style="text-align:left"><b xmlns="http://schemas.gpo.gov/xml/uslm">“For taxable years beginning in calendar year—</b></th> <th style="text-align:right"><b xmlns="http://schemas.gpo.gov/xml/uslm">The applicable percentage is—</b></th> </tr> </thead> <tbody> <tr> <td style="text-align:left" leaders="yes">1998 or 1999</td> <td style="text-align:right">55</td> </tr> <tr> <td style="text-align:left" leaders="yes">2000 or 2001</td> <td style="text-align:right">60</td> </tr> <tr> <td style="text-align:left" leaders="yes">2002 or 2003</td> <td style="text-align:right">65</td> </tr> <tr> <td style="text-align:left" leaders="yes">2004 or 2005</td> <td style="text-align:right">70</td> </tr> <tr> <td style="text-align:left" leaders="yes">2006 or 2007</td> <td style="text-align:right">75</td> </tr> <tr> <td style="text-align:left" leaders="yes">2008 or thereafter</td> <td style="text-align:right">80.”.</td> </tr> </tbody> </table> </content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a)<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s274">26 USC 274 note</ref>.</p></sidenote> shall apply to taxable years beginning after December 31, 1997.</content> </subsection> </section> <section> <num value="970">SEC. 970.</num> <heading>CLARIFICATION OF DE MINIMIS FRINGE BENEFIT RULES TO NO-CHARGE EMPLOYEE MEALS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Paragraph (2) of section 132(e) (defining de minimis fringe) is amended by adding at the end the following new sentence: “For purposes of subparagraph (B), an employee entitled under section 119 to exclude the value of a meal provided at such facility shall be treated as having paid an amount for such meal equal to the direct operating costs of the facility attributable to such meal.”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s132">26 USC 132 note</ref>.</p></sidenote> shall apply to taxable years beginning after December 31, 1997.</content> </subsection> </section> <section> <num value="971">SEC. 971.</num> <heading>EXEMPTION OF THE INCREMENTAL COST OF A CLEAN FUEL VEHICLE FROM THE LIMITS ON DEPRECIATION FOR VEHICLES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 280F(a)(1) (relating to limiting depreciation on luxury automobiles) is amended by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Special rule for certain clean-fuel passenger automobiles</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Modified automobiles</inline>.—</heading><content>In the case of a passenger automobile which is propelled by a fuel which is not a clean-burning fuel and to which is installed qualified clean-fuel vehicle property (as defined in section 179A(c)(1)(A)) for purposes of permitting such vehicle to be propelled by a clean burning fuel (as defined in section 179A(e)(1)), subparagraph (A) shall not apply to the cost of the installed qualified clean burning vehicle property.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Purpose built passenger vehicles</inline>.—</heading><content>In the case of a purpose built passenger vehicle (as defined in section 4001(a)(2)(C)(ii)), each of the annual limitations specified in subparagraph (A) shall be tripled.”.</content></clause> </subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s280F">26 USC 280F note</ref>.</p></sidenote> shall apply to property placed in service after the date of enactment of this Act and before January 1, 2005.</content> </subsection> </section> <section> <num value="972">SEC. 972.</num> <heading>TEMPORARY SUSPENSION OF TAXABLE INCOME LIMIT ON PERCENTAGE DEPLETION FOR MARGINAL PRODUCTION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Paragraph (6) of section 613A(c) is amended by adding at the end the following new subparagraph:<page identifier="/us/stat/111/898">111 STAT. 898</page> <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(H)</num> <heading><inline class="smallCaps">Temporary suspension of taxable income limit with respect to marginal production</inline>.—</heading><content>The second sentence of subsection (a) of section 613 shall not apply to so much of the allowance for depletion as is determined under subparagraph (A) for any taxable year beginning after December 31, 1997, and before January 1, 2000.”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s613A">26 USC 613A note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1997.</content> </subsection> </section> <section> <num value="973">SEC. 973.</num> <heading>INCREASE IN STANDARD MILEAGE RATE EXPENSE DEDUCTION FOR CHARITABLE USE OF PASSENGER AUTOMOBILE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 170(i) (relating to standard mileage rate for use of passenger automobile) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="i">“(i)</num> <heading><inline class="smallCaps">Standard Mileage Rate for Use of Passenger Automobile</inline>.—</heading><content>For purposes of computing the deduction under this section for use or a passenger automobile, the standard mileage rate shall be 14 cents per mile”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s170">26 USC 170 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1997.</content> </subsection> </section> <section> <num value="974">SEC. 974.</num> <heading>CLARIFICATION OF TREATMENT OF CERTAIN RECEIVABLES PURCHASED BY COOPERATIVE HOSPITAL SERVICE ORGANIZATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subparagraph (A) of section 501(e)(1) is amended by inserting “<quotedText>(including the purchase of patron accounts receivable on a recourse basis)</quotedText>” after “billing and collection”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s501">26 USC 501 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1996.</content> </subsection> </section> <section> <num value="975">SEC. 975.</num> <heading>DEDUCTION IN COMPUTING ADJUSTED GROSS INCOME FOR EXPENSES IN CONNECTION WITH SERVICE PERFORMED BY CERTAIN OFFICIALS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Paragraph (2) of section 62(a) (defining adjusted gross income) is amended by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Certain expenses of officials</inline>.—</heading><content>The deductions allowed by section 162 which consist of expenses paid or incurred with respect to services performed by an official as an employee of a State or a political subdivision thereof in a position compensated in whole or in part on a fee basis.”.</content></subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s62">26 USC 62 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section shall apply to expenses paid or incurred in taxable years beginning after December 31, 1986.</content> </subsection> </section> <section> <num value="976">SEC. 976.</num> <heading>COMBINED EMPLOYMENT TAX REPORTING DEMONSTRATION PROJECT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6103">26 USC 6103 note</ref>.</p></sidenote> <heading><inline class="smallCaps">In General</inline>.—</heading><content>The Secretary of the Treasury shall provide for a demonstration project to assess the feasibility and desirability of expanding combined Federal and State tax reporting.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6103">26 USC 6103 note</ref>.</p><p class="indent0 firstIndent0 fontsize8">Montana.</p></sidenote> <heading><inline class="smallCaps">Description of Demonstration Project</inline>.—</heading><chapeau>The demonstration project under subsection (a) shall be—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>carried out between the Internal Revenue Service and the State of Montana for a period ending with the date which is 5 years after the date of the enactment of this Act,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>limited to the reporting of employment taxes, and<page identifier="/us/stat/111/899">111 STAT. 899</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>limited to the disclosure of the taxpayer identity (as defined in section 6103(b)(6) of such Code) and the signature of the taxpayer.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <content>Conforming Amendment.—Section 6103(d) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Disclosure for certain combined reporting project</inline>.—</heading><content>The Secretary shall disclose taxpayer identities and signatures for purposes of the demonstration project described in section 967 of the Taxpayer Relief Act of 1997.”.</content></paragraph> </quotedContent> </content></subsection> </section> <section> <num value="977">SEC. 977.</num> <heading>ELECTIVE CARRYBACK OF EXISTING CARRYOVERS OF NATIONAL RAILROAD PASSENGER CORPORATION.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s172">26 USC 172 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Elective Carryback</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>If the National Railroad Passenger Corporation (in this section referred to as the “Corporation”)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>makes an election under this section for its first taxable year ending after September 30, 1997, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>agrees to the conditions specified in paragraph (2),</content></subparagraph> <continuation class="indent0 fontsize10">then the Corporation shall be treated as having made a payment of the tax imposed by chapter 1 of the Internal Revenue Code of 1986 for such first taxable year and the succeeding taxable year in an amount (for each such taxable year) equal to 50 percent of the amount determined under paragraph (3). Each such payment shall be treated as having been made by the Corporation on the last day prescribed by law (without regard to extensions) for filing its return of tax under chapter 1 of such Code for the taxable year to which such payment relates.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conditions</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>This section shall only apply to the Corporation if it agrees (in such manner as the Secretary of the Treasury or his delegate may prescribe) to—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>except as provided in clause (ii), use any refund of the payment described in paragraph (1) (and any interest thereon) solely to finance qualified expenses of the Corporation, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>make the payments to non-Amtrak States as described in subsection (c).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Repayment</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Corporation shall repay to the United States any amount not used in accordance with this paragraph and any amount remaining unused as of January 1, 2010.</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <heading><inline class="smallCaps">Special rules</inline>.—</heading><chapeau>For purposes of clause (i)—</chapeau> <subclause class="indent4 fontsize10"><num value="I">(I)</num> <content>no amount shall be treated as remaining unused as of January 1, 2010, if it is obligated as of such date for a qualified expense, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">(II)</num> <content>the Corporation shall not be treated as failing to meet the requirements of clause (i) by reason of investing any amount for a temporary period.</content></subclause> </clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Amount</inline>.—</heading><chapeau>For purposes of paragraph (1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The amount determined under this paragraph shall be the lesser of—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>35 percent of the Corporation’s existing qualified carryovers, or<page identifier="/us/stat/111/900">111 STAT. 900</page></content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>the Corporation’s net tax liability for the carryback period.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Dollar limit</inline>.—</heading><content>Such amount shall not exceed $2,323,000,000.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Existing Qualified Carryovers; Net Tax Liability</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Existing qualified carryovers</inline>.—</heading><content>The term “existing qualified carryovers” means the aggregate of the amounts which are net operating loss carryovers under section 172(b) of the Internal Revenue Code of 1986 to the Corporation’s first taxable year ending after September 30, 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Net tax liability for carryback period</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Corporation’s net tax liability for the carryback period is the aggregate of the net tax liability of the Corporation’s railroad predecessors for taxable years in the carryback period.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Net tax liability</inline>.—</heading><content>The term “net tax liability” means, with respect to any taxable year, the amount of the tax imposed by chapter 1 of the Internal Revenue Code of 1986 (or any corresponding provision of prior law) for such taxable year, reduced by the sum of the credits allowable against such tax under such Code (or any corresponding provision of prior law).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <heading><inline class="smallCaps">Carryback period</inline>.—</heading><chapeau>The term “carryback period” means the period—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>which begins with the first taxable year of any railroad predecessor beginning before January 1, 1971, for which there is a net tax liability, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>which ends with the last taxable year of any railroad predecessor beginning before January 1, 1971.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Railroad predecessor</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term “railroad predecessor” means—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>any railroad which entered into a contract under section 401 or 404(a) of the Rail Passenger Service Act of 1970 relieving the railroad of its entire responsibility for the provision of intercity rail passenger service, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>any predecessor thereof.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Consolidated returns</inline>.—</heading><content>If any railroad described in subparagraph (A) was a member of an affiliated group which filed a consolidated return for any taxable year in the carryback period, each member of such group shall be treated as a railroad predecessor for such year.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Payments to Non-Amtrak States</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Within 30 days after receipt of any refund of any payment described in subsection (a)(1), the Corporation shall pay to each non-Amtrak State an amount equal to 1 percent of the amount of such refund.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Use of payment</inline>.—</heading><content>Each non-Amtrak State shall use the payment described in paragraph (1) (and any interest thereon) solely to finance qualified expenses of the State.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Repayment</inline>.—</heading><chapeau>A non-Amtrak State shall pay to the United States—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>any portion of the payment received by the State under paragraph (1) (and any interest thereon) which is used for a purpose other than to finance qualified expenses <page identifier="/us/stat/111/901">111 STAT. 901</page>of the State or which remains unused as of January 1, 2010, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>if such State ceases to be a non-Amtrak State, the portion of such payment (and any interest thereon) remaining as of the date of the cessation.</content></subparagraph> </paragraph> <continuation class="indent0 fontsize10">Rules similar to the rules of subsection (a)(2)(B) shall apply for purposes of this paragraph.</continuation> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Tax Consequences</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Reduction in carryovers</inline>.—</heading><content>If the Corporation elects the application of this section, the Corporation’s existing qualified carryovers shall be reduced by an amount equal to the amount determined under subsection (a)(3) divided by 0.35.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Reduction in tax paid by railroad predecessors</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>—</heading><content>The Secretary of the Treasury or his delegate shall appropriately adjust the tax account of each railroad predecessor to reduce the net tax liability of such predecessor for taxable years beginning in the carryback period which is offset by reason of the application of this section.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">FIFO ordering rule</inline>.—</heading><content>The Secretary shall make the adjustments under subparagraph (A) first for the earliest year in the carryback period and then for each subsequent year in such period.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <heading><inline class="smallCaps">No effect on other taxpayers</inline>.—</heading><content>In no event shall any taxpayer other than the Corporation be allowed a refund or credit by reason of this section.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <heading><inline class="smallCaps">Waiver of limitations</inline>.—</heading><content>If the adjustment under subparagraph (A) is barred by the operation of any law or rule of law, such law or rule of law shall be waived solely for purposes of making such adjustment.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Tax treatment of expenditures</inline>.—</heading><chapeau>With respect to any payment by the Corporation of qualified expenses described in subsection (e)(1)(A) during any taxable year from the amount of any refund of the payment described in subsection (a)(1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>no deduction shall be allowed to the Corporation with respect to any amount paid or incurred which is attributable to such amount, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>the basis of any property shall be reduced by the portion of the cost of such property which is attributable to such amount.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Payments to a non-amtrak state</inline>.—</heading><content>No deduction shall be allowed to the Corporation under chapter 1 of the Internal Revenue Code of 1986 for any payment to a non-Amtrak State required under subsection (a)(2)(A)(ii).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Qualified expenses</inline>.—</heading><chapeau>The term “qualified expenses” means expenses incurred for—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <chapeau>in the case of the Corporation—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>the acquisition of equipment, rolling stock, and other capital improvements, the upgrading of maintenance facilities, and the maintenance of existing equipment, in intercity passenger rail service, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>the payment of interest and principal on obligations incurred for such acquisition, upgrading, and maintenance, and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>in the case of a non-Amtrak State—<page identifier="/us/stat/111/902">111 STAT. 902</page></chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>the acquisition of equipment, rolling stock, and other capital improvements, the upgrading of maintenance facilities, and the maintenance of existing equipment, in intercity passenger rail service,</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>the acquisition of equipment, rolling stock, and other capital improvements, the upgrading of maintenance facilities, and the maintenance of existing equipment, in intercity bus service,</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>the purchase of intercity passenger rail services from the Corporation, and</content></clause> <clause class="indent3 fontsize10"><num value="iv">(iv)</num> <content>the payment of interest and principal on obligations incurred for such acquisition, upgrading, maintenance, and purchase.</content></clause> <continuation class="indent0 fontsize10">In the case of a non-Amtrak State which provides its own intercity passenger rail service on the date of the enactment of this paragraph, subparagraph (B) shall be applied by only taking into account clauses (i) and (iv).</continuation> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Non-amtrak state</inline>.—</heading><content>The term “non-Amtrak State” means, with respect to any payment, any State which does not receive intercity passenger rail service from the Corporation at any time during the period beginning on the date of the enactment of this Act and ending on the date of the payment.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Authorizing Reform Required</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary of the Treasury shall not make payment of any refund of any payment described in subsection (a)(1) earlier than the date of the enactment of Federal legislation, other than legislation included in this section, which is enacted after July 29, 1997, and which authorizes reforms of the National Railroad Passenger Corporation.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">No interest</inline>.—</heading><content>Notwithstanding any other provision of law, if the payment of any refund is delayed by reason of paragraph (1), no interest shall accrue with respect to such payment prior to the 45th day following the date of the enactment of Federal legislation described in paragraph (1).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Estimate of revenue</inline>.—</heading><content>For purposes of estimating revenues under budget reconciliation, the impact of this section on Federal revenues shall be determined without regard to this subsection.</content></paragraph> </subsection> </section> </subtitle> <subtitle> <num value="H">Subtitle H—</num><heading>Extension of Duty-Free Treatment Under Generalized System of Preferences</heading> <section> <num value="981">SEC. 981.</num> <heading>GENERALIZED SYSTEM OF PREFERENCES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Extension of Duty-Free Treatment Under System</inline>.—</heading><content>Section 505 of the Trade Act of 1974 (19 U.S.C. 2465) is amended by striking “<quotedText>May 31, 1997</quotedText>” and inserting “<quotedText>June 30, 1998</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t19/s465">19 USC 465 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Retroactive Application for Certain Liquidations and Reliquidations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Notwithstanding section 514 of the Tariff Act of 1930 or any other provision of law and subject to paragraph (2), the entry—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>of any article to which duty-free treatment under title V of the Trade Act of 1974 would have applied if the entry had been made on May 31, 1997, and<page identifier="/us/stat/111/903">111 STAT. 903</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>that was made after May 31, 1997, and before the date of the enactment of this Act, shall be liquidated or reliquidated as free of duty, and the Secretary of the Treasury shall refund any duty paid with respect to such entry. As used in this subsection, the term “entry” includes a withdrawal from warehouse for consumption.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Requests</inline>.—</heading><chapeau>Liquidation or reliquidation may be made under paragraph (1) with respect to an entry only if a request therefor is filed with the Customs Service, within 180 days after the date of the enactment of this Act, that contains sufficient information to enable the Customs Service—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>to locate the entry; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>to reconstruct the entry if it cannot be located.</content></subparagraph> </paragraph> </subsection> </section> </subtitle> <num value="X">TITLE X—</num><heading>REVENUES</heading> <subtitle> <num value="A">Subtitle A—</num><heading>Financial Products</heading> <section> <num value="1001">SEC. 1001.</num> <heading>CONSTRUCTIVE SALES TREATMENT FOR APPRECIATED FINANCIAL POSITIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Part IV of subchapter P of chapter 1 is amended by adding at the end the following new section: <quotedContent> <section> <num value="1259">“SEC. 1259.</num> <heading>CONSTRUCTIVE SALES TREATMENT FOR APPRECIATED FINANCIAL POSITIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>If there is a constructive sale of an appreciated financial position—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the taxpayer shall recognize gain as if such position were sold, assigned, or otherwise terminated at its fair market value on the date of such constructive sale (and any gain shall be taken into account for the taxable year which includes such date), and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <chapeau>for purposes of applying this title for periods after the constructive sale—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>proper adjustment shall be made in the amount of any gain or loss subsequently realized with respect to such position for any gain taken into account by reason of paragraph (1), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the holding period of such position shall be determined as if such position were originally acquired on the date of such constructive sale.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Appreciated Financial Position</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in paragraph (2), the term ‘appreciated financial position’ means any position with respect to any stock, debt instrument, or partnership interest if there would be gain were such position sold, assigned, or otherwise terminated at its fair market value.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Exceptions</inline>.—</heading><chapeau>The term ‘appreciated financial position’ shall not include—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>any position with respect to debt if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the debt unconditionally entitles the holder to receive a specified principal amount,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the interest payments (or other similar amounts) with respect to such debt meet the requirements of clause (i) of section 860G(a)(1)(B), and<page identifier="/us/stat/111/904">111 STAT. 904</page></content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>such debt is not convertible (directly or indirectly) into stock of the issuer or any related person, and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>any position which is marked to market under any provision of this title or the regulations thereunder.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Position</inline>.—</heading><content>The term ‘position’ means an interest, including a futures or forward contract, short sale, or option.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Constructive Sale</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>A taxpayer shall be treated as having made a constructive sale of an appreciated financial position if the taxpayer (or a related person)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>enters into a short sale of the same or substantially identical property,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>enters into an offsetting notional principal contract with respect to the same or substantially identical property,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>enters into a futures or forward contract to deliver the same or substantially identical property,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>in the case of an appreciated financial position that is a short sale or a contract described in subparagraph (B) or (C) with respect to any property, acquires the same or substantially identical property, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>to the extent prescribed by the Secretary in regulations, enters into 1 or more other transactions (or acquires 1 or more positions) that have substantially the same effect as a transaction described in any of the preceding subparagraphs.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Exception for sales of nonpublicly traded property</inline>.—</heading><content>The term ‘constructive sale’ shall not include any contract for sale of any stock, debt instrument, or partnership interest which is not a marketable security (as defined in section 453(f)) if the contract settles within 1 year after the date such contract is entered into.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Exception for certain closed transactions</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In applying this section, there shall be disregarded any transaction (which would otherwise be treated as a constructive sale) during the taxable year if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>such transaction is closed before the end of the 30th day after the close of such taxable year,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the taxpayer holds the appreciated financial position throughout the 60-day period beginning on the date such transaction is closed, and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>at no time during such 60-day period is the taxpayer’s risk of loss with respect to such position reduced by reason of a circumstance which would be described in section 246(c)(4) if references to stock included references to such position.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Treatment of positions which are reestablished</inline>.—</heading><chapeau>If—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>a transaction, which would otherwise be treated as a constructive sale of an appreciated financial position, is closed during the taxable year or during the 30 days thereafter, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>another substantially similar transaction is entered into during the 60-day period beginning on the date the transaction referred to in clause (i) is closed—<page identifier="/us/stat/111/905">111 STAT. 905</page></chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>which also would otherwise be treated as a constructive sale of such position,</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>which is closed before the 30th day after the close of the taxable year in which the transaction referred to in clause (i) occurs, and</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>which meets the requirements of clauses (ii) and (iii) of subparagraph (A),</content></subclause> </clause> <continuation class="indent0 fontsize10">the transaction referred to in clause (ii) shall be disregarded for purposes of determining whether the requirements of subparagraph (A)(iii) are met with respect to the transaction described in clause (i).</continuation> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Related person</inline>.—</heading><chapeau>A person is related to another person with respect to a transaction if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the relationship is described in section 267(b) or 707(b), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>such transaction is entered into with a view toward avoiding the purposes of this section.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Other Definitions</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>Forward contract.—The term ‘forward contract’ means a contract to deliver a substantially fixed amount of property for a substantially fixed price.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <chapeau>Offsetting notional principal contract.—The term ‘offsetting notional principal contract’ means, with respect to any property, an agreement which includes—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>a requirement to pay (or provide credit for) all or substantially all of the investment yield (including appreciation) on such property for a specified period, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>a right to be reimbursed for (or receive credit for) all or substantially all of any decline in the value of such property.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Special Rules</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Treatment of subsequent sale of position which was deemed sold</inline>.—</heading><chapeau>If—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>there is a constructive sale of any appreciated financial position,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>such position is subsequently disposed of, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>at the time of such disposition, the transaction resulting in the constructive sale of such position is open with respect to the taxpayer or any related person, solely for purposes of determining whether the taxpayer has entered into a constructive sale of any other appreciated financial position held by the taxpayer, the taxpayer shall be treated as entering into such transaction immediately after such disposition. For purposes of the preceding sentence, an assignment or other termination shall be treated as a disposition.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>Certain trust instruments treated as stock.— For purposes of this section, an interest in a trust which is actively traded (within the meaning of section 1092(d)(1)) shall be treated as stock unless substantially all (by value) of the property held by the trust is debt described in subsection (b)(2)(A).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Multiple positions in property</inline>.—</heading><content>If a taxpayer holds multiple positions in property, the determination of whether a specific transaction is a constructive sale and, if so, which appreciated financial position is deemed sold shall be made in the same manner as actual sales.<page identifier="/us/stat/111/906">111 STAT. 906</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Regulations</inline>.—</heading><content>The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section.”.</content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Election of Mark to Market for Dealers in Commodities and for Traders in Securities or Commodities</inline>.—</heading><content>Section 475 (relating to mark to market accounting method for dealers in securities) is amended by redesignating subsection (e) as subsection (g) and by inserting after subsection (d) the following new subsections: <quotedContent> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Election of Mark to Market For Dealers in Commodities</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In the case of a dealer in commodities who elects the application of this subsection, this section shall apply to commodities held by such dealer in the same manner as this section applies to securities held by a dealer in securities.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Commodity</inline>.—</heading><chapeau>For purposes of this subsection and subsection (f), the term ‘commodity’ means—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>any commodity which is actively traded (within the meaning of section 1092(d)(1));</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>any notional principal contract with respect to any commodity described in subparagraph (A);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>any evidence of an interest in, or a derivative instrument in, any commodity described in subparagraph (A) or (B), including any option, forward contract, futures contract, short position, and any similar instrument in such a commodity; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <chapeau>any position which—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>is not a commodity described in subparagraph (A), (B), or (C),</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>is a hedge with respect to such a commodity, and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>is clearly identified in the taxpayer’s records as being described in this subparagraph before the close of the day on which it was acquired or entered into (or such other time as the Secretary may by regulations prescribe).</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Election</inline>.—</heading><content>An election under this subsection may be made without the consent of the Secretary. Such an election, once made, shall apply to the taxable year for which made and all subsequent taxable years unless revoked with the consent of the Secretary.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Election of Mark to Market For Traders in Securities or Commodities</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Traders in securities</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of a person who is engaged in a trade or business as a trader in securities and who elects to have this paragraph apply to such trade or business—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>such person shall recognize gain or loss on any security held in connection with such trade or business at the close of any taxable year as if such security were sold for its fair market value on the last business day of such taxable year, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>any gain or loss shall be taken into account for such taxable year.<page identifier="/us/stat/111/907">111 STAT. 907</page></content></clause> <continuation class="indent0 fontsize10">Proper adjustment shall be made in the amount of any gain or loss subsequently realized for gain or loss taken into account under the preceding sentence. The Secretary may provide by regulations for the application of this subparagraph at times other than the times provided in this subparagraph.</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Exception</inline>.—</heading><chapeau>Subparagraph (A) shall not apply to any security—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>which is established to the satisfaction of the Secretary as having no connection to the activities of such person as a trader, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>which is clearly identified in such person’s records as being described in clause (i) before the close of the day on which it was acquired, originated, or entered into (or such other time as the Secretary may by regulations prescribe).</content></clause> <continuation class="indent0 fontsize10">If a security ceases to be described in clause (i) at any time after it was identified as such under clause (ii), subparagraph (A) shall apply to any changes in value of the security occurring after the cessation.</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Coordination with section 1259</inline>.—</heading><content>Any security to which subparagraph (A) applies and which was acquired in the normal course of the taxpayer’s activities as a trader in securities shall not be taken into account in applying section 1259 to any position to which subparagraph (A) does not apply.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Other rules to apply</inline>.—</heading><content>Rules similar to the rules of subsections (b)(4) and (d) shall apply to securities held by a person in any trade or business with respect to which an election under this paragraph is in effect.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Traders in commodities</inline>.—</heading><content>In the case of a person who is engaged in a trade or business as a trader in commodities and who elects to have this paragraph apply to such trade or business, paragraph (1) shall apply to commodities held by such trader in connection with such trade or business in the same manner as paragraph (1) applies to securities held by a trader in securities.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Election</inline>.—</heading><content>The elections under paragraphs (1) and (2) may be made separately for each trade or business and without the consent of the Secretary. Such an election, once made, shall apply to the taxable year for which made and all subsequent taxable years unless revoked with the consent of the Secretary.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections for part IV of subchapter P of chapter 1 is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 1259.</designator> <label>Constructive sales treatment for appreciated financial positions.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s475">26 USC 475 note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as otherwise provided in this subsection, the amendments made by this section shall apply to any constructive sale after June 8, 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Exception for sales of positions, etc. held before june 9, 1997</inline>.—</heading><chapeau>If—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>before June 9, 1997, the taxpayer entered into any transaction which is a constructive sale of any appreciated financial position, and<page identifier="/us/stat/111/908">111 STAT. 908</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>before the close of the 30-day period beginning on the date of the enactment of this Act or before such later date as may be specified by the Secretary of the Treasury, such transaction and position are clearly identified in the taxpayer’s records as offsetting, such transaction and position shall not be taken into account in determining whether any other constructive sale after June 8, 1997, has occurred. The preceding sentence shall cease to apply as of the date such transaction is closed or the taxpayer ceases to hold such position.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Special rule</inline>.—</heading><chapeau>In the case of a decedent dying after June 8, 1997, if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>there was a constructive sale on or before such date of any appreciated financial position,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>the transaction resulting in such constructive sale of such position remains open (with respect to the decedent or any related person)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>for not less than 2 years after the date of such transaction (whether such period is before or after June 8, 1997), and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>at any time during the 3-year period ending on the date of the decedent’s death, and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>such transaction is not closed within the 30-day period beginning on the date of the enactment of this Act,</content></subparagraph> <continuation class="indent0 fontsize10">then, for purposes of such Code, such position (and the transaction resulting in such constructive sale) shall be treated as property constituting rights to receive an item of income in respect of a decedent under section 691 of such Code. Section 1014(c) of such Code shall not apply to so much of such position’s or property’s value (as included in the decedent’s estate for purposes of chapter 11 of such Code) as exceeds its fair market value as of the date such transaction is closed.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Election of mark to market by securities traders and traders and dealers in commodities</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendments made by subsection (b) shall apply to taxable years ending after the date of the enactment of this Act.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">4-year spread of adjustments</inline>.—</heading><chapeau>In the case of a taxpayer who elects under subsection (e) or (f) of section 475 of the Internal Revenue Code of 1986 (as added by this section) to change its method of accounting for the taxable year which includes the date of the enactment of this Act—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>any identification required under such subsection with respect to securities and commodities held on the date of the enactment of this Act shall be treated as timely made if made on or before the 30th day after such date of enactment, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>the net amount of the adjustments required to be taken into account by the taxpayer under section 481 of such Code shall be taken into account ratably over the 4-taxable year period beginning with such first taxable year.<page identifier="/us/stat/111/909">111 STAT. 909</page></content></clause> </subparagraph> </paragraph> </subsection> </section> <section> <num value="1002">SEC. 1002.</num> <heading>LIMITATION ON EXCEPTION FOR INVESTMENT COMPANIES UNDER SECTION 351.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Paragraph (1) of section 351(e) (relating to exceptions) is amended by adding at the end the following: “For purposes of the preceding sentence, the determination of whether a company is an investment company shall be made— <quotedContent> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>by taking into account all stock and securities held by the company, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>by treating as stock and securities—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>money,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>stocks and other equity interests in a corporation, evidences of indebtedness, options, forward or futures contracts, notional principal contracts and derivatives,</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>any foreign currency,</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>any interest in a real estate investment trust, a common trust fund, a regulated investment company, a publicly-traded partnership (as defined in section 7704(b)) or any other equity interest (other than in a corporation) which pursuant to its terms or any other arrangement is readily convertible into, or exchangeable for, any asset described in any preceding clause, this clause or clause (v) or (viii),</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>except to the extent provided in regulations prescribed by the Secretary, any interest in a precious metal, unless such metal is used or held in the active conduct of a trade or business after the contribution,</content></clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <content>except as otherwise provided in regulations prescribed by the Secretary, interests in any entity if substantially all of the assets of such entity consist (directly or indirectly) of any assets described in any preceding clause or clause (viii),</content></clause> <clause class="indent3 fontsize10"><num value="vii">“(vii)</num> <content>to the extent provided in regulations prescribed by the Secretary, any interest in any entity not described in clause (vi), but only to the extent of the value of such interest that is attributable to assets listed in clauses (i) through (v) or clause (viii), or</content></clause> <clause class="indent3 fontsize10"><num value="viii">“(viii)</num> <content>any other asset specified in regulations prescribed by the Secretary.</content></clause> <continuation class="indent0 fontsize10">The Secretary may prescribe regulations that, under appropriate circumstances, treat any asset described in clauses (i) through (v) as not so listed.”.</continuation> </subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s351">26 USC 351 note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendment made by subsection (a) shall apply to transfers after June 8, 1997, in taxable years ending after such date.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Binding contracts</inline>.—</heading><content>The amendment made by subsection (a) shall not apply to any transfer pursuant to a written binding contract in effect on June 8, 1997, and at all times thereafter before such transfer if such contract provides for the transfer of a fixed amount of property.</content></paragraph> </subsection> </section> <section> <num value="1003">SEC. 1003.</num> <heading>GAINS AND LOSSES FROM CERTAIN TERMINATIONS WITH RESPECT TO PROPERTY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Application of Capital Treatment to Property Other Than Personal Property</inline>.—<page identifier="/us/stat/111/910">111 STAT. 910</page></heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Paragraph (1) of section 1234A (relating to gains and losses from certain terminations) is amended by striking “<quotedText>personal property (as defined in section 1092(d)(1))</quotedText>” and inserting “<quotedText>property</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1234A">26 USC 1234A note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendment made by paragraph (1) shall apply to terminations more than 30 days after the date of the enactment of this Act.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Treatment of Short Sales of Property Which Becomes Substantially Worthless</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 1233 is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Short Sales of Property Which Becomes Substantially Worthless</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>If—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the taxpayer enters into a short sale of property, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>such property becomes substantially worthless, the taxpayer shall recognize gain in the same manner as if the short sale were closed when the property becomes substantially worthless. To the extent provided in regulations prescribed by the Secretary, the preceding sentence also shall apply with respect to any option with respect to property, any offsetting notional principal contract with respect to property, any futures or forward contract to deliver any property, and any other similar transaction.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Statute of limitations</inline>.—</heading><chapeau>If property becomes substantially worthless during a taxable year and any short sale of such property remains open at the time such property becomes substantially worthless, then—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>the statutory period for the assessment of any deficiency attributable to any part of the gain on such transaction shall not expire before the earlier of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the date which is 3 years after the date the Secretary is notified by the taxpayer (in such manner as the Secretary may by regulations prescribe) of the substantial worthlessness of such property, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the date which is 6 years after the date the return for such taxable year is filed, and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>such deficiency may be assessed before the date applicable under subparagraph (A) notwithstanding the provisions of any other law or rule of law which would otherwise prevent such assessment.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1233">26 USC 1233 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendment made by paragraph (1) shall apply to property which becomes substantially worthless after the date of the enactment of this Act.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Application of Capital Treatment, Etc. to Obligations Issued by Natural Persons</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 1271(b) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Exception for Certain Obligations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>This section shall not apply to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>any obligation issued by a natural person before June 9, 1997, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>any obligation issued before July 2, 1982, by an issuer which is not a corporation and is not a government or political subdivision thereof.<page identifier="/us/stat/111/911">111 STAT. 911</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Termination</inline>.—</heading><content>Paragraph (1) shall not apply to any obligation purchased (within the meaning of section 1272(d)(1)) after June 8, 1997.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendment made by paragraph<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1271">26 USC 1271 note</ref>.</p></sidenote> (1) shall apply to sales, exchanges, and retirements after the date of enactment of this Act.</content></paragraph> </subsection> </section> <section> <num value="1004">SEC. 1004.</num> <heading>DETERMINATION OF ORIGINAL ISSUE DISCOUNT WHERE POOLED DEBT OBLIGATIONS SUBJECT TO ACCELERATION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subparagraph (C) of section 1272(a)(6) (relating to debt instruments to which the paragraph applies) is amended by striking “<quotedText>or</quotedText>” at the end of clause (i), by striking the period at the end of clause (ii) and inserting “<quotedText>, or</quotedText>”, and by inserting after clause (ii) the following: <quotedContent> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>any pool of debt instruments the yield on which may be affected by reason of prepayments (or to the extent provided in regulations, by reason of other events).</content></clause> <continuation class="indent0 fontsize10">To the extent provided in regulations prescribed by the Secretary, in the case of a small business engaged in the trade or business of selling tangible personal property at retail, clause (iii) shall not apply to debt instruments incurred in the ordinary course of such trade or business while held by such business.”.</continuation> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1272">26 USC 1272 note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Change in method of accounting</inline>.—</heading><chapeau>In the case of any taxpayer required by this section to change its method of accounting for its first taxable year beginning after the date of the enactment of this Act—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>such change shall be treated as initiated by the taxpayer,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>such change shall be treated as made with the consent of the Secretary of the Treasury, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>the net amount of the adjustments required to be taken into account by the taxpayer under section 481 of the Internal Revenue Code of 1986 shall be taken into account ratably over the 4-taxable year period beginning with such first taxable year.</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="1005">SEC. 1005.</num> <heading>DENIAL OF INTEREST DEDUCTIONS ON CERTAIN DEBT INSTRUMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 163 (relating to deduction for interest), as amended by title V, is amended by redesignating subsection (1) as subsection (m) and by inserting after subsection (k) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="l">“(l)</num> <heading><inline class="smallCaps">Disallowance of Deduction on Certain Debt Instruments of Corporations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>No deduction shall be allowed under this chapter for any interest paid or accrued on a disqualified debt instrument.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Disqualified debt instrument</inline>.—</heading><content>For purposes of this subsection, the term ‘disqualified debt instrument’ means any indebtedness of a corporation which is payable in equity of the issuer or a related party.<page identifier="/us/stat/111/912">111 STAT. 912</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Special rules for amounts payable in equity</inline>.—</heading><chapeau>For purposes of paragraph (2), indebtedness shall be treated as payable in equity of the issuer or a related party only if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>a substantial amount of the principal or interest is required to be paid or converted, or at the option of the issuer or a related party is payable in, or convertible into, such equity,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>a substantial amount of the principal or interest is required to be determined, or at the option of the issuer or a related party is determined, by reference to the value of such equity, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>the indebtedness is part of an arrangement which is reasonably expected to result in a transaction described in subparagraph (A) or (B).</content></subparagraph> <continuation class="indent0 fontsize10">For purposes of this paragraph, principal or interest shall be treated as required to be so paid, converted, or determined if it may be required at the option of the holder or a related party and there is a substantial certainty the option will be exercised.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Related party</inline>.—</heading><content>For purposes of this subsection, a person is a related party with respect to another person if such person bears a relationship to such other person described in section 267(b) or 707(b).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Regulations</inline>.—</heading><content>The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this subsection, including regulations preventing avoidance of this subsection through the use of an issuer other than a corporation.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s163">26 USC 163 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendment made by this section shall apply to disqualified debt instruments issued after June 8, 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Transition rule</inline>.—</heading><chapeau>The amendment made by this section shall not apply to any instrument issued after June 8, 1997, if such instrument is—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>issued pursuant to a written agreement which was binding on such date and at all times thereafter,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>described in a ruling request submitted to the Internal Revenue Service on or before such date, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>described on or before such date in a public announcement or in a filing with the Securities and Exchange Commission required solely by reason of the issuance.</content></subparagraph> </paragraph> </subsection> </section> </subtitle> <subtitle> <num value="B">Subtitle B—</num><heading>Corporate Organizations and Reorganizations</heading> <section> <num value="1011">SEC. 1011.</num> <heading>TAX TREATMENT OF CERTAIN EXTRAORDINARY DIVIDENDS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Treatment of Extraordinary Dividends in Excess of Basis</inline>.—</heading><content>Paragraph (2) of section 1059(a) (relating to corporate shareholder’s recognition of gain attributable to nontaxed portion of extraordinary dividends) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Amounts in excess of basis</inline>.—</heading><content>If the nontaxed portion of such dividends exceeds such basis, such excess shall be treated as gain from the sale or exchange of such stock for <page identifier="/us/stat/111/913">111 STAT. 913</page>the taxable year in which the extraordinary dividend is received.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Treatment of Redemptions Where Options Involved</inline>.—</heading><content>Paragraph (1) of section 1059(e) (relating to treatment of partial liquidations and non-pro rata redemptions) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Treatment of partial liquidations and certain redemptions</inline>.—</heading><chapeau>Except as otherwise provided in regulations—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Redemptions</inline>.—</heading><chapeau>In the case of any redemption of stock—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>which is part of a partial liquidation (within the meaning of section 302(e)) of the redeeming corporation,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>which is not pro rata as to all shareholders, or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>which would not have been treated (in whole or in part) as a dividend if any options had not been taken into account under section 318(a)(4),</content></clause> <continuation class="indent0 fontsize10">any amount treated as a dividend with respect to such redemption shall be treated as an extraordinary dividend to which paragraphs (1) and (2) of subsection (a) apply without regard to the period the taxpayer held such stock. In the case of a redemption described in clause (iii), only the basis in the stock redeemed shall be taken into account under subsection (a).</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Reorganizations, etc</inline>.—</heading><content>An exchange described in section 356 which is treated as a dividend shall be treated as a redemption of stock for purposes of applying subparagraph (A).”.</content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Time for Reduction</inline>.—</heading><content>Paragraph (1) of section 1059(d) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Time for reduction</inline>.—</heading><content>Any reduction in basis under subsection (a)(1) shall be treated as occurring at the beginning of the ex-dividend date of the extraordinary dividend to which the reduction relates”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1059">26 USC 1059 note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendments made by this section shall apply to distributions after May 3, 1995.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Transition rule</inline>.—</heading><chapeau>The amendments made by this section shall not apply to any distribution made pursuant to the terms of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>a written binding contract in effect on May 3, 1995, and at all times thereafter before such distribution, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>a tender offer outstanding on May 3, 1995.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Certain dividends not pursuant to certain redemptions</inline>.—</heading><content>In determining whether the amendment made by subsection (a) applies to any extraordinary dividend other than a dividend treated as an extraordinary dividend under section 1059(e)(1) of the Internal Revenue Code of 1986 (as amended by this Act), paragraphs (1) and (2) shall be applied by substituting “September 13, 1995” for “May 3, 1995”.<page identifier="/us/stat/111/914">111 STAT. 914</page></content></paragraph> </subsection> </section> <section> <num value="1012">SEC. 1012.</num> <heading>APPLICATION OF SECTION 355 TO DISTRIBUTIONS IN CONNECTION WITH ACQUISITIONS AND TO INTRAGROUP TRANSACTIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Distributions In Connection With Acquisitions</inline>.—</heading><content>Section 355 (relating to distributions of stock and securities of a controlled corporation) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Recognition of Gain on Certain Distributions of Stock or Securities In Connection With Acquisitions</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">General rule</inline>.—</heading><content>If there is a distribution to which this subsection applies, any stock or securities in the controlled corporation shall not be treated as qualified property for purposes of subsection (c)(2) of this section or section 361(c)(2).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Distributions to which subsection applies</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>This subsection shall apply to any distribution—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>to which this section (or so much of section 356 as relates to this section) applies, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>which is part of a plan (or series of related transactions) pursuant to which 1 or more persons acquire directly or indirectly stock representing a 50-percent or greater interest in the distributing corporation or any controlled corporation.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Plan presumed to exist in certain cases</inline>.—</heading><content>If 1 or more persons acquire directly or indirectly stock representing a 50-percent or greater interest in the distributing corporation or any controlled corporation during the 4-year period beginning on the date which is 2 years before the date of the distribution, such acquisition shall be treated as pursuant to a plan described in subparagraph (A)(ii) unless it is established that the distribution and the acquisition are not pursuant to a plan or series of related transactions.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Certain plans disregarded</inline>.—</heading><content>A plan (or series of related transactions) shall not be treated as described in subparagraph (A)(ii) if, immediately after the completion of such plan or transactions, the distributing corporation and all controlled corporations are members of a single affiliated group (as defined in section 1504 without regard to subsection (b) thereof).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Coordination with subsection (d)</inline>.—</heading><content>This subsection shall not apply to any distribution to which subsection (d) applies.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Special rules relating to acquisitions</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Certain acquisitions not taken into account</inline>.—</heading><chapeau>Except as provided in regulations, the following acquisitions shall not be treated as described in paragraph (2)(A)(ii):</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>The acquisition of stock in any controlled corporation by the distributing corporation.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>The acquisition by a person of stock in any controlled corporation by reason of holding stock or securities in the distributing corporation.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>The acquisition by a person of stock in any successor corporation of the distributing corporation or any controlled corporation by reason of holding stock <page identifier="/us/stat/111/915">111 STAT. 915</page>or securities in such distributing or controlled corporation.</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <chapeau>The acquisition of stock in a corporation if shareholders owning directly or indirectly stock possessing—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>more than 50 percent of the total combined voting power of all classes of stock entitled to vote, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>more than 50 percent of the total value of shares of all classes of stock,</content></subclause> <continuation class="indent0 fontsize10">in the distributing corporation or any controlled corporation before such acquisition own directly or indirectly stock possessing such vote and value in such distributing or controlled corporation after such acquisition.</continuation> </clause> <continuation class="indent0 fontsize10">This subparagraph shall not apply to any acquisition if the stock held before the acquisition was acquired pursuant to a plan (or series of related transactions) described in paragraph (2)(A)(ii).</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Asset acquisitions</inline>.—</heading><content>Except as provided in regulations, for purposes of this subsection, if the assets of the distributing corporation or any controlled corporation are acquired by a successor corporation in a transaction described in subparagraph (A), (C), or (D) of section 368(a)(1) or any other transaction specified in regulations by the Secretary, the shareholders (immediately before the acquisition) of the corporation acquiring such assets shall be treated as acquiring stock in the corporation from which the assets were acquired.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Definition and special rules</inline>.—</heading><chapeau>For purposes of this subsection—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">50-percent or greater interest</inline>.—</heading><content>The term ‘50-percent or greater interest’ has the meaning given such term by subsection (d)(4).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Distributions in title ii or similar case</inline>.—</heading><content>Paragraph (1) shall not apply to any distribution made in a title 11 or similar case (as defined in section 368(a)(3)).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Aggregation and attribution rules</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Aggregation</inline>.—</heading><content>The rules of paragraph (7)(A) of subsection (d) shall apply.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Attribution</inline>.—</heading><content>Section 318(a)(2) shall apply in determining whether a person holds stock or securities in any corporation. Except as provided in regulations, section 318(a)(2)(C) shall be applied without regard to the phrase ‘50 percent or more in value’ for purposes of the preceding sentence.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Successors and predecessors</inline>.—</heading><content>For purposes of this subsection, any reference to a controlled corporation or a distributing corporation shall include a reference to any predecessor or successor of such corporation.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Statute of limitations</inline>.—</heading><chapeau>If there is a distribution to which paragraph (1) applies—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the statutory period for the assessment of any deficiency attributable to any part of the gain recognized under this subsection by reason of such distribution shall not expire before the expiration of 3 years from the date the Secretary is notified by the taxpayer <page identifier="/us/stat/111/916">111 STAT. 916</page>(in such manner as the Secretary may by regulations prescribe) that such distribution occurred, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>such deficiency may be assessed before the expiration of such 3-year period notwithstanding the provisions of any other law or rule of law which would otherwise prevent such assessment.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Regulations</inline>.—</heading><chapeau>The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this subsection, including regulations—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>providing for the application of this subsection where there is more than 1 controlled corporation,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>treating 2 or more distributions as 1 distribution where necessary to prevent the avoidance of such purposes, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>providing for the application of rules similar to the rules of subsection (d)(6) where appropriate for purposes of paragraph (2)(B).”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Special Rules for Certain Intragroup Transactions</inline>.—</heading><paragraph class="inline"><num value="1">(1)</num> <content>Section 355 not to apply.—Section 355, as amended by subsection (a), is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Section Not To Apply to Certain Intragroup Distributions</inline>.—</heading><content>Except as provided in regulations, this section (or so much of section 356 as relates to this section) shall not apply to the distribution of stock from 1 member of an affiliated group (as defined in section 1504(a)) to another member of such group if such distribution is part of a plan (or series of related transactions) described in subsection (e)(2)(A)(ii) (determined after the application of subsection (e)).”.</content> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Adjustments to basis</inline>.—</heading><content>Section 358 (relating to basis to distributees) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Adjustments in Intragroup Transactions Involving Section 355</inline>.—</heading><chapeau>In the case of a distribution to which section 355 (or so much of section 356 as relates to section 355) applies and which involves the distribution of stock from 1 member of an affiliated group (as defined in section 1504(a) without regard to subsection (b) thereof) to another member of such group, the Secretary may, notwithstanding any other provision of this section, provide adjustments to the adjusted basis of any stock which—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>is in a corporation which is a member of such group, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>is held by another member of such group, to appropriately reflect the proper treatment of such distribution.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Determination of Control in Certain Divisive Transactions</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Section 351 transactions.—Section 351(c) (relating to special rule) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Special Rules Where Distribution to Shareholders</inline>.—</heading><chapeau>In determining control for purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the fact that any corporate transferor distributes part or all of the stock in the corporation which it receives in the exchange to its shareholders shall not be taken into account, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <chapeau>if the requirements of section 355 are met with respect to such distribution, the shareholders shall be treated as in control of such corporation immediately after the exchange <page identifier="/us/stat/111/917">111 STAT. 917</page>if the shareholders own (immediately after the distribution) stock possessing—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>more than 50 percent of the total combined voting power of all classes of stock of such corporation entitled to vote, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>more than 50 percent of the total value of shares of all classes of stock of such corporation.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">D reorganizations</inline>.—</heading><content>Section 368(a)(2)(H) (relating to special rule for determining whether certain transactions are qualified under paragraph (1)(D)) is amended to read as follows: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num> <heading><inline class="smallCaps">Special rules for determining whether certain transactions are qualified under paragraph (1)(d)</inline>.—</heading><chapeau>For purposes of determining whether a transaction qualifies under paragraph (1)(D)—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>in the case of a transaction with respect to which the requirements of subparagraphs (A) and (B) of section 354(b)(1) are met, the term ‘control’ has the meaning given such term by section 304(c), and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>in the case of a transaction with respect to which the requirements of section 355 are met, the shareholders described in paragraph (1)(D) shall be treated as having control of the corporation to which the assets are transferred if such shareholders own (immediately after the distribution) stock possessing—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>more than 50 percent of the total combined voting power of all classes of stock of such corporation entitled to vote, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>more than 50 percent of the total value of shares of all classes of stock of such corporation.”.</content></subclause> </clause> </subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s351">26 USC 351 note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Section 355 rules</inline>.—</heading><content>The amendments made by subsections (a) and (b) shall apply to distributions after April 16, 1997, pursuant to a plan (or series of related transactions) which involves an acquisition described in section 355(e)(2)(A)(ii) of the Internal Revenue Code of 1986 occurring after such date.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Divisive transactions</inline>.—</heading><content>The amendments made by subsection (c) shall apply to transfers after the date of the enactment of this Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Transition rule</inline>.—</heading><chapeau>The amendments made by this section shall not apply to any distribution pursuant to a plan (or series of related transactions) which involves an acquisition described in section 355(e)(2)(A)(ii) of the Internal Revenue Code of 1986 (or, in the case of the amendments made by subsection (c), any transfer) occurring after April 16, 1997, if such acquisition or transfer is—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>made pursuant to an agreement which was binding on such date and at all times thereafter,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>described in a ruling request submitted to the Internal Revenue Service on or before such date, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>described on or before such date in a public announcement or in a filing with the Securities and Exchange Commission required solely by reason of the acquisition or transfer.</content></subparagraph> <continuation class="indent0 fontsize10">This paragraph shall not apply to any agreement, ruling request, or public announcement or filing unless it identifies <page identifier="/us/stat/111/918">111 STAT. 918</page>the acquirer of the distributing corporation or any controlled corporation, or the transferee, whichever is applicable.</continuation> </paragraph> </subsection> </section> <section> <num value="1013">SEC. 1013.</num> <heading>TAX TREATMENT OF REDEMPTIONS INVOLVING RELATED CORPORATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Stock Purchases by Related Corporations</inline>.—</heading><content>The last sentence of section 304(a)(1) (relating to acquisition by related corporation other than subsidiary) is amended to read as follows: “To the extent that such distribution is treated as a distribution to which section 301 applies, the transferor and the acquiring corporation shall be treated in the same manner as if the transferor had transferred the stock so acquired to the acquiring corporation in exchange for stock of the acquiring corporation in a transaction to which section 351(a) applies, and then the acquiring corporation had redeemed the stock it was treated as issuing in such transaction.”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Coordination With Section 1059</inline>.—</heading><content>Clause (iii) of section 1059(e)(1)(A), as amended by this title, is amended to read as follows: <quotedContent> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <chapeau>which would not have been treated (in whole or in part) as a dividend if—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>any options had not been taken into account under section 318(a)(4), or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>section 304(a) had not applied,”.</content></subclause> </clause> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Special Rule for Acquisitions by Foreign Corporations</inline>.—</heading><content>Section 304(b) (relating to special rules for application of subsection (a)) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Acquisitions by foreign corporations</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of any acquisition to which subsection (a) applies in which the acquiring corporation is a foreign corporation, the only earnings and profits taken into account under paragraph (2)(A) shall be those earnings and profits—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <chapeau>which are attributable (under regulations prescribed by the Secretary) to stock of the acquiring corporation owned (within the meaning of section 958(a)) by a corporation or individual which is—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>a United States shareholder (within the meaning of section 951(b)) of the acquiring corporation, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the transferor or a person who bears a relationship to the transferor described in section 267(b) or 707(b), and</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>which were accumulated during the period or periods such stock was owned by such person while the acquiring corporation was a controlled foreign corporation.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Application of section 1248</inline>.—</heading><content>For purposes of subparagraph (A), the rules of section 1248(d) shall apply except to the extent otherwise provided by the Secretary.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Regulations</inline>.—</heading><content>The Secretary shall prescribe such regulations as are appropriate to carry out the purposes of this paragraph.”.</content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s304">26 USC 304 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendments made by this section shall apply to distributions and acquisitions after June 8, 1997.<page identifier="/us/stat/111/919">111 STAT. 919</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Transition rule</inline>.—</heading><chapeau>The amendments made by this section shall not apply to any distribution or acquisition after June 8, 1997, if such distribution or acquisition is—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>made pursuant to a written agreement which was binding on such date and at all times thereafter,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>described in a ruling request submitted to the Internal Revenue Service on or before such date, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>described in a public announcement or filing with the Securities and Exchange Commission on or before such date.</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="1014">SEC. 1014.</num> <heading>CERTAIN PREFERRED STOCK TREATED AS BOOT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Section 351</inline>.—</heading><content>Section 351 (relating to transfer to corporation controlled by transferor) is amended by redesignating subsection (g) as subsection (h) and by inserting after subsection (f) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Nonqualified Preferred Stock Not Treated as Stock</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of a person who transfers property to a corporation and receives nonqualified preferred stock—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>subsection (a) shall not apply to such transferor,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>subsection (b) shall apply to such transferor, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>such nonqualified preferred stock shall be treated as other property for purposes of applying subsection (b).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <chapeau>Nonqualified preferred stock.—For purposes of paragraph (1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘nonqualified preferred stock’ means preferred stock if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the holder of such stock has the right to require the issuer or a related person to redeem or purchase the stock,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the issuer or a related person is required to redeem or purchase such stock,</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>the issuer or a related person has the right to redeem or purchase the stock and, as of the issue date, it is more likely than not that such right will be exercised, or</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>the dividend rate on such stock varies in whole or in part (directly or indirectly) with reference to interest rates, commodity prices, or other similar indices.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Limitations</inline>.—</heading><content>Clauses (i), (ii), and (iii) of subparagraph (A) shall apply only if the right or obligation referred to therein may be exercised within the 20-year period beginning on the issue date of such stock and such right or obligation is not subject to a contingency which, as of the issue date, makes remote the likelihood of the redemption or purchase.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Exceptions for certain rights or obligations</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>A right or obligation shall not be treated as described in clause (i), (ii), or (iii) of subparagraph (A) if—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>it may be exercised only upon the death, disability, or mental incompetency of the holder, or<page identifier="/us/stat/111/920">111 STAT. 920</page></content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>in the case of a right or obligation to redeem or purchase stock transferred in connection with the performance of services for the issuer or a related person (and which represents reasonable compensation), it may be exercised only upon the holder’s separation from service from the issuer or a related person.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Exception</inline>.—</heading><chapeau>Clause (i)(I) shall not apply if the stock relinquished in the exchange, or the stock acquired in the exchange is in—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>a corporation if any class of stock in such corporation or a related party is readily tradable on an established securities market or otherwise, or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>any other corporation if such exchange is part of a transaction or series of transactions in which such corporation is to become a corporation described in subclause (I).</content></subclause> </clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this subsection—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Preferred stock</inline>.—</heading><content>The term ‘preferred stock’ means stock which is limited and preferred as to dividends and does not participate in corporate growth to any significant extent.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Related person</inline>.—</heading><content>A person shall be treated as related to another person if they bear a relationship to such other person described in section 267(b) or 707(b).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Regulations</inline>.—</heading><content>The Secretary may prescribe such regulations as may be necessary or appropriate to carry out the purposes of this subsection and sections 354(a)(2)(C), 355(a)(3)(1), and 356(e). The Secretary may also prescribe regulations, consistent with the treatment under this subsection and such sections, for the treatment of nonqualified preferred stock under other provisions of this title.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Section 354</inline>.—</heading><content>Paragraph (2) of section 354(a) (relating to exchanges of stock and securities in certain reorganizations) is amended by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Nonqualified preferred stock</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Nonqualified preferred stock (as defined in section 351(g)(2)) received in exchange for stock other than nonqualified preferred stock (as so defined) shall not be treated as stock or securities.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Recapitalizations of family-owned corporations</inline>.—</heading> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Clause (i) shall not apply in the case of a recapitalization under section 368(a)(1)(E) of a family-owned corporation.</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <heading><inline class="smallCaps">Family-owned corporation</inline>.—</heading><content>For purposes of this clause, except as provided in regulations, the term ‘family-owned corporation’ means any corporation which is described in clause (i) of section 447(d)(2)(C) throughout the 8-year period beginning on the date which is 5 years before the date of the recapitalization. For purposes of the preceding sentence, stock shall not be treated as owned by a family member during any period described in section 355(d)(6)(B).”.<page identifier="/us/stat/111/921">111 STAT. 921</page></content></subclause> </clause> </subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Section 355</inline>.—</heading><content>Paragraph (3) of section 355(a) is amended by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Nonqualified preferred stock</inline>.—</heading><content>Nonqualified preferred stock (as defined in section 351(g)(2)) received in a distribution with respect to stock other than nonqualified preferred stock (as so defined) shall not be treated as stock or securities.”.</content></subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Section 356</inline>.—</heading><content>Section 356 is amended by redesignating subsections (e) and (f) as subsections (f) and (g), respectively, and by inserting after subsection (d) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Nonqualified Preferred Stock Treated as Other Property</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in paragraph (2), the term ‘other property’ includes nonqualified preferred stock (as defined in section 351(g)(2)).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Exception</inline>.—</heading><content>The term ‘other property’ does not include nonqualified preferred stock (as so defined) to the extent that, under section 354 or 355, such preferred stock would be permitted to be received without the recognition of gain.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Subparagraph (B) of section 354(a)(2) and subparagraph (C) of section 355(a)(3)(C) are each amended by inserting “<quotedText>(including nonqualified preferred stock, as defined in section 351(g)(2))</quotedText>”after “stock”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Subparagraph (A) of section 354(a)(3) and subparagraph (A) of section 355(a)(4) are each amended by inserting “<quotedText>nonqualified preferred stock and</quotedText>” after “including”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Section 1036 is amended by redesignating subsection (b) as subsection (c) and by inserting after subsection (a) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Nonqualified Preferred Stock Not Treated as Stock</inline>.—</heading><content>For purposes of this section, nonqualified preferred stock (as defined in section 351(g)(2)) shall be treated as property other than stock.”.</content> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s361">26 USC 361 note.</ref></p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendments made by this section shall apply to transactions after June 8, 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Transition rule</inline>.—</heading><chapeau>The amendments made by this section shall not apply to any transaction after June 8, 1997, if such transaction is—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>made pursuant to a written agreement which was binding on such date and at all times thereafter,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>described in a ruling request submitted to the Internal Revenue Service on or before such date, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>described on or before such date in a public announcement or in a filing with the Securities and Exchange Commission required solely by reason of the transaction.</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="1015">SEC. 1015.</num> <heading>MODIFICATION OF HOLDING PERIOD APPLICABLE TO DIVIDENDS RECEIVED DEDUCTION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subparagraph (A) of section 246(c)(1) is amended to read as follows: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>which is held by the taxpayer for 45 days or less during the 90-day period beginning on the date which is 45 days before the date on which such share becomes ex-dividend with respect to such dividend, or”.<page identifier="/us/stat/111/922">111 STAT. 922</page></content></subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Paragraph (2) of section 246(c) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <chapeau>90-day rule in the case of certain preference dividends.—In the case of stock having preference in dividends, if the taxpayer receives dividends with respect to such stock which are attributable to a period or periods aggregating in excess of 366 days, paragraph (1)(A) shall be applied—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>by substituting ‘90 days’ for ‘45 days’ each place it appears, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>by substituting ‘180-day period’ for ‘90-day period’.”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Paragraph (3) of section 246(c) is amended by adding “<quotedText>and</quotedText>” at the end of subparagraph (A), by striking subparagraph (B), and by redesignating subparagraph (C) as subparagraph (B).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s246">26 USC 246 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendments made by this section shall apply to dividends received or accrued after the 30th day after the date of the enactment of this Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Transitional rule</inline>.—</heading><chapeau>The amendments made by this section shall not apply to dividends received or accrued during the 2-year period beginning on the date of the enactment of this Act if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>the dividend is paid with respect to stock held by the taxpayer on June 8, 1997, and all times thereafter until the dividend is received,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>such stock is continuously subject to a position described in section 246(c)(4) of the Internal Revenue Code of 1986 on June 8, 1997, and all times thereafter until the dividend is received, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>such stock and position are clearly identified in the taxpayer’s records within 30 days after the date of the enactment of this Act.</content></subparagraph> <continuation class="indent0 fontsize10">Stock shall not be treated as meeting the requirement of subparagraph (B) if the position is sold, closed, or otherwise terminated and reestablished.</continuation> </paragraph> </subsection> </section> </subtitle> <subtitle> <num value="C">Subtitle C—</num><heading>Administrative Provisions</heading> <section> <num value="1021">SEC. 1021.</num> <heading>REPORTING OF CERTAIN PAYMENTS MADE TO ATTORNEYS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 6045 (relating to returns of brokers) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Return Required in the Case of Payments to Attorneys</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Any person engaged in a trade or business and making a payment (in the course of such trade or business) to which this subsection applies shall file a return under subsection (a) and a statement under subsection (b) with respect to such payment.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Application of subsection</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>This subsection shall apply to any payment to an attorney in connection with legal services (whether or not such services are performed for the payor).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Exception</inline>.—</heading><content>This subsection shall not apply to the portion of any payment which is required to be reported <page identifier="/us/stat/111/923">111 STAT. 923</page>under section 6041(a) (or would be so required but for the dollar limitation contained therein) or section 6051.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Reporting of Attorneys’ Fees Payable to Corporations</inline>.—</heading><content>The regulations providing an exception under section 6041 of the Internal Revenue Code of 1986 for payments made to corporations shall not apply to payments of attorneys’ fees.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6045">26 USC 6045 note</ref>.</p></sidenote> shall apply to payments made after December 31, 1997.</content> </subsection> </section> <section> <num value="1022">SEC. 1022.</num> <heading>DECREASE OF THRESHOLD FOR REPORTING PAYMENTS TO CORPORATIONS PERFORMING SERVICES FOR FEDERAL AGENCIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (d) of section 6041A (relating to returns regarding payments of remuneration for services and direct sales) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Payments to corporations by federal executive agencies</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Notwithstanding any regulation prescribed by the Secretary before the date of the enactment of this paragraph, subsection (a) shall apply to remuneration paid to a corporation by any Federal executive agency (as defined in section 6050M(b)).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Exception</inline>.—</heading><chapeau>Subparagraph (A) shall not apply to—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>services under contracts described in section 6050M(e)(3) with respect to which the requirements of section 6050M(e)(2) are met, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>such other services as the Secretary may specify in regulations prescribed after the date of the enactment of this paragraph.”.</content></clause> </subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6041A">26 USC 6041A note</ref>.</p></sidenote> shall apply to returns the due date for which (determined without regard to any extension) is more than 90 days after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1023">SEC. 1023.</num> <heading>DISCLOSURE OF RETURN INFORMATION FOR ADMINISTRATION OF CERTAIN VETERANS PROGRAMS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Clause (viii) of section 6103(1)(7)(D) (relating to disclosure of return information to Federal, State, and local agencies administering certain programs) is amended by striking “<quotedText>1998</quotedText>” and inserting “<quotedText>2003</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a)<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6103">26 USC 6103 note</ref>.</p></sidenote> shall take effect on the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1024">SEC. 1024.</num> <heading>CONTINUOUS LEVY ON CERTAIN PAYMENTS.</heading> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 6331 (relating to levy and distraint) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by redesignating subsection (h) as subsection (i), and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting after subsection (g) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Continuing Levy on Certain Payments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The effect of a levy on specified payments to or received by a taxpayer shall be continuous from the date such levy is first made until such levy is released. Notwithstanding section 6334, such continuous levy shall attach to up to 15 percent of any specified payment due to the taxpayer.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Specified payment</inline>.—</heading><chapeau>For the purposes of paragraph (1), the term ‘specified payment’ means—<page identifier="/us/stat/111/924">111 STAT. 924</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>any Federal payment other than a payment for which eligibility is based on the income or assets (or both) of a payee,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>any payment described in paragraph (4), (7), (9), or (11) of section 6334(a), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>any annuity or pension payment under the Railroad Retirement Act or benefit under the Railroad Unemployment Insurance Act.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6331">26 USC 6331 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall apply to levies issued after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1025">SEC. 1025.</num> <heading>MODIFICATION OF LEVY EXEMPTION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 6334 (relating to property exempt from levy) is amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Levy Allowed on Certain Specified Payments</inline>.—</heading><content>Any payment described in subparagraph (B) or (C) of section 6331(h)(2) shall not be exempt from levy if the Secretary approves the levy thereon under section 6331(h).”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6334">26 USC 6334 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall apply to levies issued after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1026">SEC. 1026.</num> <heading>CONFIDENTIALITY AND DISCLOSURE OF RETURNS AND RETURN INFORMATION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (k) of section 6103 is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <heading><inline class="smallCaps">Levies on certain government payments</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Disclosure of return information in levies on financial management service</inline>.—</heading><chapeau>In serving a notice of levy, or release of such levy, with respect to any applicable government payment, the Secretary may disclose to officers and employees of the Financial Management Service—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>return information, including taxpayer identity information,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the amount of any unpaid Lability under this title (including penalties and interest), and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>the type of tax and tax period to which such unpaid liability relates.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Restriction on use of disclosed information</inline>.—</heading><content>Return information disclosed under subparagraph (A) may be used by officers and employees of the Financial Management Service only for the purpose of, and to the extent necessary in, transferring levied funds in satisfaction of the levy, maintaining appropriate agency records in regard to such levy or the release thereof, notifying the taxpayer and the agency certifying such payment that the levy has been honored, or in the defense of any litigation ensuing from the honor of such levy.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Applicable government payment</inline>.—</heading><chapeau>For purposes of this paragraph, the term ‘applicable government payment’ means—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>any Federal payment (other than a payment for which eligibility is based on the income or assets <page identifier="/us/stat/111/925">111 STAT. 925</page>(or both) of a payee) certified to the Financial Management Service for disbursement, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>any other payment which is certified to the Financial Management Service for disbursement and which the Secretary designates by published notice.”.</content></clause> </subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>Section 6103(p) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in paragraph (3)(A), by striking “<quotedText>(2), or (6)</quotedText>” and inserting “<quotedText>(2), (6), or (8)</quotedText>”, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in paragraph (4), by inserting “<quotedText>(k)(8),</quotedText>” after “(j)(1) or (2),” each place it appears.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Section 552a(a)(8)(B) of title 5, United States Code, is amended by striking “<quotedText>or</quotedText>” at the end of clause (v), by adding “<quotedText>or</quotedText>” at the end of clause (vi), and by adding at the end the following new clause: <quotedContent> <clause class="indent3 fontsize10"><num value="vii">“(vii)</num> <content>matches performed incident to a levy described in section 6103(k)(8) of the Internal Revenue Code of 1986;”.</content></clause> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6103">26 USC 6103 note</ref>.</p></sidenote> shall apply to levies issued after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1027">SEC. 1027.</num> <heading>RETURNS OF BENEFICIARIES OF ESTATES AND TRUSTS REQUIRED TO FILE RETURNS CONSISTENT WITH ESTATE OR TRUST RETURN OR TO NOTIFY SECRETARY OF INCONSISTENCY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Domestic Estates and Trusts</inline>.—</heading><content>Section 6034A (relating to information to beneficiaries of estates and trusts) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Beneficiary’s Return Must be Consistent with Estate or Trust Return or Secretary Notified of Inconsistency</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>A beneficiary of any estate or trust to which subsection (a) applies shall, on such beneficiary’s return, treat any reported item in a manner which is consistent with the treatment of such item on the applicable entity’s return.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Notification of inconsistent treatment</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of any reported item, if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num><subclause class="inline"><num value="I">(I)</num> <content>the applicable entity has filed a return but the beneficiary’s treatment on such beneficiary’s return is (or may be) inconsistent with the treatment of the item on the applicable entity’s return, or</content></subclause> <subclause class="indent0 fontsize10"><num value="II">“(II)</num> <content>the applicable entity has not filed a return, and</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the beneficiary files with the Secretary a statement identifying the inconsistency,</content></clause> <continuation class="indent0 fontsize10">paragraph (1) shall not apply to such item.</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Beneficiary receiving incorrect information</inline>.—</heading><chapeau>A beneficiary shall be treated as having complied with clause (ii) of subparagraph (A) with respect to a reported item if the beneficiary—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>demonstrates to the satisfaction of the Secretary that the treatment of the reported item on the beneficiary’s return is consistent with the treatment of the item on the statement furnished under subsection (a) to the beneficiary by the applicable entity, and<page identifier="/us/stat/111/926">111 STAT. 926</page></content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>elects to have this paragraph apply with respect to that item.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Effect of failure to notify</inline>.—</heading><chapeau>In any case—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>described in subparagraph (A)(i)(I) of paragraph (2), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>in which the beneficiary does not comply with subparagraph (A)(ii) of paragraph (2),</content></subparagraph> <continuation class="indent0 fontsize10">any adjustment required to make the treatment of the items by such beneficiary consistent with the treatment of the items on the applicable entity’s return shall be treated as arising out of mathematical or clerical errors and assessed according to section 6213(b)(1). Paragraph (2) of section 6213(b) shall not apply to any assessment referred to in the preceding sentence.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this subsection—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Reported item</inline>.—</heading><content>The term ‘reported item’ means any item for which information is required to be furnished under subsection (a).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Applicable entity</inline>.—</heading><content>The term ‘applicable entity’ means the estate or trust of which the taxpayer is the beneficiary.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Addition to tax for failure to comply with section</inline>.—</heading><content>For addition to tax in the case of a beneficiary’s negligence in connection with, or disregard of, the requirements of this section, see part II of subchapter A of chapter 68.”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Foreign Trusts</inline>.—</heading><content>Subsection (d) of section 6048 (relating to information with respect to certain foreign trusts) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">United states person’s return must be consistent with trust return or secretary notified of inconsistency</inline>.—</heading><content>Rules similar to the rules of section 6034A(c) shall apply to items reported by a trust under subsection (b)(1)(B) and to United States persons referred to in such subsection.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6034A">26 USC 6034A note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to returns of beneficiaries and owners filed after the date of the enactment of this Act.</content> </subsection> </quotedContent> </content></subsection> </section> <section> <num value="1028">SEC. 1028.</num> <heading>REGISTRATION AND OTHER PROVISIONS RELATING TO CONFIDENTIAL CORPORATE TAX SHELTERS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 6111 (relating to registration of tax shelters) is amended by redesignating subsections (d) and (e) as subsections (e) and (f), respectively, and by inserting after subsection (c) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Certain Confidential Arrangements Treated as Tax Shelters</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of this section, the term ‘tax shelter’ includes any entity, plan, arrangement, or transaction—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>a significant purpose of the structure of which is the avoidance or evasion of Federal income tax for a direct or indirect participant which is a corporation,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>which is offered to any potential participant under conditions of confidentiality, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>for which the tax shelter promoters may receive fees in excess of $100,000 in the aggregate.<page identifier="/us/stat/111/927">111 STAT. 927</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Conditions of confidentiality</inline>.—</heading><chapeau>For purposes of paragraph (1)(B), an offer is under conditions of confidentiality if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the potential participant to whom the offer is made (or any other person acting on behalf of such participant) has an understanding or agreement with or for the benefit of any promoter of the tax shelter that such participant (or such other person) will limit disclosure of the tax shelter or any significant tax features of the tax shelter, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>any promoter of the tax shelter—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>claims, knows, or has reason to know,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>knows or has reason to know that any other person (other than the potential participant) claims, or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>causes another person to claim,</content></clause> <continuation class="indent0 fontsize10">that the tax shelter (or any aspect thereof) is proprietary to any person other than the potential participant or is otherwise protected from disclosure to or use by others.</continuation> </subparagraph> <continuation class="indent0 fontsize10">For purposes of this subsection, the term ‘promoter’ means any person or any related person (within the meaning of section 267 or 707) who participates in the organization, management, or sale of the tax shelter.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Persons other than promoter required to register in certain cases</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>If—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the requirements of subsection (a) are not met with respect to any tax shelter (as defined in paragraph (1)) by any tax shelter promoter, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>no tax shelter promoter is a United States person,</content></clause> <continuation class="indent0 fontsize10">then each United States person who discussed participation in such shelter shall register such shelter under subsection (a).</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Exception</inline>.—</heading><chapeau>Subparagraph (A) shall not apply to a United States person who discussed participation in a tax shelter if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>such person notified the promoter in writing (not later than the close of the 90th day after the day on which such discussions began) that such person would not participate in such shelter, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>such person does not participate in such shelter.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Offer to participate treated as offer for sale</inline>.—</heading><content>For purposes of subsections (a) and (b), an offer to participate in a tax shelter (as defined in paragraph (1)) shall be treated as an offer for sale.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Penalty</inline>.—</heading><content>Subsection (a) of section 6707 (relating to failure to furnish information regarding tax shelters) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Confidential arrangements</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of a tax shelter (as defined in section 6111(d)), the penalty imposed under paragraph (1) shall be an amount equal to the greater of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>50 percent of the fees paid to all promoters of the tax shelter with respect to offerings made before <page identifier="/us/stat/111/928">111 STAT. 928</page>the date such shelter is registered under section 6111, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>$10,000.</content></clause> <continuation class="indent0 fontsize10">Clause (i) shall be applied by substituting ‘75 percent’ for ‘50 percent’ in the case of an intentional failure or act described in paragraph (1).</continuation> </paragraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Special rule for participants required to register shelter</inline>.—</heading><chapeau>In the case of a person required to register such a tax shelter by reason of section 6111(d)(3)—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>such person shall be required to pay the penalty under paragraph (1) only if such person actually participated in such shelter,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the amount of such penalty shall be determined by taking into account under subparagraph (A)(i) only the fees paid by such person, and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>such penalty shall be in addition to the penalty imposed on any other person for failing to register such shelter”.</content></clause> </subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Modifications to Substantial Understatement Penalty</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Restriction on reasonable basis for corporate understatement of income tax</inline>.—</heading><content>Subparagraph (B) of section 6662(d)(2) is amended by adding at the end the following new flush sentence: <quotedContent> <p class="indent0 fontsize10">“For purposes of clause (ii)(II), in no event shall a corporation be treated as having a reasonable basis for its tax treatment of an item attributable to a multiple-party financing transaction if such treatment does not clearly reflect the income of the corporation.”.</p> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Modification to definition of tax shelter</inline>.—</heading><content>Clause (iii) of section 6662(d)(2)(C) is amended by striking “<quotedText>the principal purpose</quotedText>” and inserting “<quotedText>a significant purpose</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Paragraph (2) of section 6707(a) is amended by striking “<quotedText>The penalty</quotedText>” and inserting “<quotedText>Except as provided in paragraph (3), the penalty</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Subparagraph (A) of section 6707(a)(1) is amended by striking “<quotedText>paragraph (2)</quotedText>” and inserting “<quotedText>paragraph (2) or (3), as the case may be</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6111">26 USC 6111 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in paragraph (2), the amendments made by this section shall apply to any tax shelter (as defined in section 6111(d) of the Internal Revenue Code of 1986, as amended by this section) interests in which are offered to potential participants after the Secretary of the Treasury prescribes guidance with respect to meeting requirements added by such amendments.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Modifications to substantial understatement penalty</inline>.—</heading><content>The amendments made by subsection (c) shall apply to items with respect to transactions entered into after the date of the enactment of this Act.<page identifier="/us/stat/111/929">111 STAT. 929</page></content></paragraph> </subsection> </section> </subtitle> <subtitle> <num value="D">Subtitle D—</num><heading>Excise and Employment Tax Provisions</heading> <section> <num value="1031">SEC. 1031.</num> <heading>EXTENSION AND MODIFICATION OF TAXES FUNDING AIRPORT AND AIRWAY TRUST FUND; INCREASED DEPOSITS INTO SUCH FUND.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Fuel Taxes</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Aviation fuel.—Clause (ii) of section 4091(b)(3)(A) is amended by striking “<quotedText>September 30, 1997</quotedText>” and inserting “<quotedText>September 30, 2007</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Aviation gasoline</inline>.—</heading><content>Subparagraph (B) of section 4081(d)(2) is amended by striking “<quotedText>September 30, 1997</quotedText>” and inserting “<quotedText>September 30, 2007</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Noncommercial aviation</inline>.—</heading><content>Subparagraph (B) of section 4041(c)(3) is amended by striking “<quotedText>September 30, 1997</quotedText>” and inserting “<quotedText>September 30, 2007</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Ticket Taxes</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Persons</inline>.—</heading><content>Clause (ii) of section 4261(g)(1)(A) is amended by striking “<quotedText>September 30, 1997</quotedText>” and inserting “<quotedText>September 30, 2007</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Property</inline>.—</heading><content>Clause (ii) of section 4271(d)(1)(A) is amended by striking “<quotedText>September 30, 1997</quotedText>” and inserting “<quotedText>September 30, 2007</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Modifications to Tax on Transportation of Persons by Air</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 4261 (relating to imposition of tax) is amended by striking subsections (a), (b), and (c) and inserting the following new subsections: <quotedContent> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>There is hereby imposed on the amount paid for taxable transportation of any person a tax equal to 7.5 percent of the amount so paid.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Domestic Segments of Taxable Transportation</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>There is hereby imposed on the amount paid for each domestic segment of taxable transportation by air a tax in the amount determined in accordance with the following table for the period in which the segment begins: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <thead> <tr> <th style="text-align:left"><b xmlns="http://schemas.gpo.gov/xml/uslm">In the case of segments beginning:</b></th> <th style="text-align:right"><b xmlns="http://schemas.gpo.gov/xml/uslm">The tax is:</b></th> </tr> </thead> <tbody> <tr> <td style="text-align:left" leaders="yes">After September 30, 1997, and before October 1, 1998</td> <td style="text-align:right">$1.00</td> </tr> <tr> <td style="text-align:left" leaders="yes">After September 30, 1998, and before October 1, 1999</td> <td style="text-align:right">$12.00</td> </tr> <tr> <td style="text-align:left" leaders="yes">After September 30, 1999, and before January 1, 2000</td> <td style="text-align:right">$12.25</td> </tr> <tr> <td style="text-align:left" leaders="yes">During 2000</td> <td style="text-align:right">$12.50</td> </tr> <tr> <td style="text-align:left" leaders="yes">During 2001</td> <td style="text-align:right">$12.75</td> </tr> <tr> <td style="text-align:left" leaders="yes">During 2002 or thereafter</td> <td style="text-align:right">$3.00.</td> </tr> </tbody> </table> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Domestic segment</inline>.—</heading><content>For purposes of this section, the term ‘domestic segment’ means any segment consisting of 1 takeoff and 1 landing and which is taxable transportation described in section 4262(a)(1).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Changes in segments by reason of rerouting</inline>.—</heading><chapeau>If—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>transportation is purchased between 2 locations on specified flights, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>there is a change in the route taken between such 2 locations which changes the number of domestic segments, but there is no change in the amount charged for such transportation, <page identifier="/us/stat/111/930">111 STAT. 930</page>the tax imposed by paragraph (1) shall be determined without regard to such change in route.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Use of International Travel Facilities</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>There is hereby imposed a tax of $12.00 on any amount paid (whether within or without the United States) for any transportation of any person by air, if such transportation begins or ends in the United States.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Exception for transportation entirely taxable under subsection (a)</inline>.—</heading><content>This subsection shall not apply to any transportation all of which is taxable under subsection (a) (determined without regard to sections 4281 and 4282).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Special rule for alaska and Hawaii</inline>.—</heading><content>In any case in which the tax imposed by paragraph (1) applies to a domestic segment beginning or ending in Alaska or Hawaii, such tax shall apply only to departures and shall be at the rate of $6.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Special rules</inline>.—</heading><content>Section 4261 is amended by redesignating subsections (e), (f), and (g) as subsections (f), (g), and (h), respectively, and by inserting after subsection (d) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Special Rules</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Segments to and from rural airports</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Exception from segment tax</inline>.—</heading><content>The tax imposed by subsection (b)(1) shall not apply to any domestic segment beginning or ending at an airport which is a rural airport for the calendar year in which such segment begins or ends (as the case may be).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Rural airport</inline>.—</heading><chapeau>For purposes of this paragraph, the term ‘rural airport’ means, with respect to any calendar year, any airport if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>there were fewer than 100,000 commercial passengers departing by air during the second preceding calendar year from such airport, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>such airport—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>is not located within 75 miles of another airport which is not described in clause (i), or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>is receiving essential air service subsidies as of the date of the enactment of this paragraph.</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">No phasein of reduced ticket tax</inline>.—</heading><chapeau>In the case of transportation beginning before October 1, 1999—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Paragraph (5) shall not apply to any domestic segment beginning or ending at an airport which is a rural airport for the calendar year in which such segment begins or ends (as the case may be).</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Transportation involving multiple segments</inline>.—</heading><content>In the case of transportation involving more than 1 domestic segment at least 1 of which does not begin or end at a rural airport, the 7.5 percent rate applicable by reason of clause (i) shall be applied by taking into account only an amount which bears the same ratio to the amount paid for such transportation as the number of specified miles in domestic segments which begin or end at a rural airport bears to the total number of specified miles in such transportation.<page identifier="/us/stat/111/931">111 STAT. 931</page></content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Amounts paid outside the united states</inline>.—</heading><content>In the case of amounts paid outside the United States for taxable transportation, the taxes imposed by subsections (a) and (b) shall apply only if such transportation begins and ends in the United States.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Amounts paid for right to award free or reduced rate air transportation</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Any amount paid (and the value of any other benefit provided) to an air carrier (or any related person) for the right to provide mileage awards for (or other reductions in the cost of) any transportation of persons by air shall be treated for purposes of subsection (a) as an amount paid for taxable transportation, and such amount shall be taxable under subsection (a) without regard to any other provision of this subchapter.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Controlled group</inline>.—</heading><content>For purposes of subparagraph (A), a corporation and all wholly owned subsidiaries of such corporation shall be treated as 1 corporation.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Regulations</inline>.—</heading><content>The Secretary shall prescribe rules which reallocate items of income, deduction, credit, exclusion, or other allowance to the extent necessary to prevent the avoidance of tax imposed by reason of this paragraph. The Secretary may prescribe rules which exclude from the tax imposed by subsection (a) amounts attributable to mileage awards which are used other than for transportation of persons by air.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Inflation adjustment of dollar rates of tax</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of taxable events in a calendar year after the last nonindexed year, the $3.00 amount contained in subsection (b) and each dollar amount contained in subsection (c) shall be increased by an amount equal to—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>such dollar amount, multiplied by</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the cost-of-living adjustment determined under section 1(0(3) for such calendar year by substituting the year before the last nonindexed year for ‘calendar year 1992’ in subparagraph (B) thereof. If any increase determined under the preceding sentence is not a multiple of 10 cents, such increase shall be rounded to the nearest multiple of 10 cents.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Last nonindexed year</inline>.—</heading><chapeau>For purposes of subparagraph (A), the last nonindexed year is—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>2002 in the case of the $3.00 amount contained in subsection (b), and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>1998 in the case of the dollar amounts contained in subsection (c).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Taxable event</inline>.—</heading><content>For purposes of subparagraph (A), in the case of the tax imposed subsection (b), the beginning of the domestic segment shall be treated as the taxable event.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Rates of ticket tax for transportation beginning before october 1, 1999</inline>.—</heading><chapeau>Subsection (a) shall be applied by substituting for ‘7.5 percent’—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>‘9 percent’ in the case of transportation beginning after September 30, 1997, and before October 1, 1998, and<page identifier="/us/stat/111/932">111 STAT. 932</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>‘8 percent’ in the case of transportation beginning after September 30, 1998, and before October 1, 1999.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Secondary liability of carrier for unpaid tax</inline>.—</heading><content>Subsection (c) of section 4263 is amended by striking “<quotedText>subchapter—</quotedText>” and all that follows and inserting “<quotedText>subchapter, such tax shall be paid by the carrier providing the initial segment of such transportation which begins or ends in the United States.</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Increased Airport and Airway Trust Fund Deposits</inline>.—</heading><paragraph class="inline"><num value="1">(1)</num> <chapeau>Paragraph (1) of section 9502(b) is amended—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>(to the extent that the rate of the tax on such gasoline exceeds 4.3 cents per gallon)</quotedText>” in subparagraph (C),</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B)</num> <content>by striking “<quotedText>to the extent attributable to the Airport and Airway Trust Fund financing rate</quotedText>” in subparagraph (D), and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C)</num> <content>by adding at the end the following flush sentence: “There shall not be taken into account under paragraph (1) so much of the taxes imposed by sections 4081 and 4091 as are determined at the rates specified in section 4081(a)(2)(B) or 4091(b)(2)”.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <content>Section 9502 is amended by striking subsection (f).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4041">26 USC 4041 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Fuel taxes</inline>.—</heading><content>The amendments made by subsection (a) shall apply take effect on October 1, 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4261">26 USC 4261 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Ticket taxes</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as otherwise provided in this paragraph, the amendments made by subsections (b) and (c) shall apply to transportation beginning on or after October 1, 1997.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Treatment of amounts paid for tickets purchased before october 1, 1997</inline>.—</heading><chapeau>The amendments made by subsection (c) shall not apply to amounts paid before October 1, 1997; except that—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>the amendment made to section 4261(c) of the Internal Revenue Code of 1986 shall apply to amounts paid more than 7 days after the date of the enactment of this Act for transportation beginning on or after October 1, 1997, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>the amendment made to section 4263(c) of such Code shall apply to the extent related to taxes imposed under the amendment made to such section 4261(c) on the amounts described in clause (i).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <heading><inline class="smallCaps">Amounts paid for right to award mileage awards</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Paragraph (3) of section 4261(e) of the Internal Revenue Code of 1986 (as added by the amendment made by subsection (c)) shall apply to amounts paid (and other benefits provided) after September 30, 1997.</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <heading><inline class="smallCaps">Payments within controlled group</inline>.—</heading><content>For purposes of clause (i), any amount paid after June 11, 1997, and before October 1, 1997, by 1 member of a controlled group for a right which is described in such section 4261(e)(3) and is furnished by another member of such group after September 30, 1997, shall <page identifier="/us/stat/111/933">111 STAT. 933</page>be treated as paid after September 30, 1997. For purposes of the preceding sentence, all persons treated as a single employer under subsection (a) or (b) of section 52 of such Code shall be treated as members of a controlled group.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Increased deposits into airport and airway trust fund</inline>.—</heading><content><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s9502">26 USC 9502 note</ref>.</p></sidenote>The amendments made by subsection (d) shall apply with respect to taxes received in the Treasury on and after October 1, 1997.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g)</num> <heading><inline class="smallCaps">Delayed Deposits of Airport Trust Fund Tax Revenues</inline>.—</heading><chapeau><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6302">26 USC 6302 note</ref>.</p></sidenote>Notwithstanding section 6302 of the Internal Revenue Code of 1986—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in the case of deposits of taxes imposed by section 4261 of such Code, the due date for any such deposit which would (but for this subsection) be required to be made after August 14, 1997, and before October 1, 1997, shall be October 10, 1997,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in the case of deposits of taxes imposed by section 4261 of such Code, the due date for any such deposit which would (but for this subsection) be required to be made after August 14, 1998, and before October 1, 1998, shall be October 5, 1998, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>in the case of deposits of taxes imposed by sections 4081(a)(2)(A)(ii), 4091, and 4271 of such Code, the due date for any such deposit which would (but for this subsection) be required to be made after July 31, 1998, and before October 1, 1998, shall be October 5, 1998.</content></paragraph> </subsection> </section> <section> <num value="1032">SEC. 1032.</num> <heading>KEROSENE TAXED AS DIESEL FUEL.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (a) of section 4083 (defining taxable fuel) is amended by striking “<quotedText>and</quotedText>” at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting “<quotedText>, and</quotedText>”, and by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>kerosene.”.</content></subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Rate of Tax</inline>.—</heading><content>Clause (iii) of section 4081(a)(2)(A) is amended by inserting “<quotedText>or kerosene</quotedText>” after “diesel fuel”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Exemptions From Tax; Refunds to Vendors</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 4082 (relating to exemptions for diesel fuel) is amended by striking “<quotedText>diesel fuel</quotedText>” each place it appears in subsections (a), (c), and (d) and inserting “<quotedText>diesel fuel and kerosene</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Certain kerosene exempt from dyeing requirement</inline>.—</heading><content>Section 4082 is amended by redesignating subsections (d) and (e) as subsections (e) and (f), respectively, and by inserting after subsection (c) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Additional Exceptions to Dyeing Requirements for Kerosene</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Aviation-grade kerosene</inline>.—</heading><content>Subsection (a)(2) shall<sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote> not apply to a removal, entry, or sale of aviation-grade kerosene (as determined under regulations prescribed by the Secretary) if the person receiving the kerosene is registered under section 4101 with respect to the tax imposed by section 4091.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Use for non-fuel feedstock purposes</inline>.—</heading><chapeau>Subsection (a)(2) shall not apply to kerosene—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>received by pipeline or vessel for use by the person receiving the kerosene in the manufacture or production <page identifier="/us/stat/111/934">111 STAT. 934</page>f any substance (other than gasoline, diesel fuel, or special fuels referred to in section 4041), or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>to the extent provided in regulations, removed or entered—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>for such a use by the person removing or entering the kerosene, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>for resale by such person for such a use by the purchaser,</content></clause> </subparagraph> <continuation class="indent0 fontsize10">but only if the person receiving, removing, or entering the kerosene and such purchaser (if any) are registered under section 4101 with respect to the tax imposed by section 4081.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Wholesale distributors</inline>.—</heading><chapeau>To the extent provided in regulations, subsection (a)(2) shall not apply to a removal, entry, or sale of kerosene to a wholesale distributor of kerosene if such distributor—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>is registered under section 4101 with respect to the tax imposed by section 4081 on kerosene, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>sells kerosene exclusively to ultimate vendors described in section 6427(1)(5)(B) with respect to kerosene.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Refunds</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Subsection (1) of section 6427 is amended by inserting “<quotedText>or kerosene</quotedText>” after “diesel fuel” each place it appears in paragraphs (1), (2), and (5) (including the heading for paragraph (5)).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Paragraph (5) of section 6427(1) is amended by redesignating subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A) the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Sales of kerosene not for use in motor fuel</inline>.—</heading><chapeau>Paragraph (1)(A) shall not apply to kerosene sold by a vendor—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>for any use if such sale is from a pump which (as determined under regulations prescribed by the Secretary) is not suitable for use in fueling any diesel-powered highway vehicle or train, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>to the extent provided by the Secretary, for blending with heating oil to be used during periods of extreme or unseasonable cold.”.</content></clause> </subparagraph> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>Subparagraph (C) of section 6427(1)(5), as redesignated by subparagraph (B) of this paragraph, is amended by striking “<quotedText>subparagraph (A)</quotedText>” and inserting “<quotedText>subparagraph (A) or (B)</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>The heading for subsection (1) of section 6427 is amended by inserting “<quotedText>, Kerosene,</quotedText>” after “Diesel Fuel”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>Clause (i) of section 6427(i)(5)(A) is amended by inserting “<quotedText>($100 or more in the case of kerosene)</quotedText>” after “$200 or more”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Certain Approved Terminals of Registered Persons Required To Offer Dyed Diesel Fuel and Kerosene for Non-taxable Purposes</inline>.—</heading><content>Section 4101 is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Certain Approved Terminals of Registered Persons Required To Offer Dyed Diesel Fuel and Kerosene for Non-taxable Purposes</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>A terminal for kerosene or diesel fuel may not be an approved facility for storage of non-tax-paid diesel fuel or kerosene under this section unless the operator <page identifier="/us/stat/111/935">111 STAT. 935</page>of such terminal offers dyed diesel fuel and kerosene for removal for nontaxable use in accordance with section 4082(a).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Exception</inline>.—</heading><content>Paragraph (1) shall not apply to any terminal exclusively providing aviation-grade kerosene by pipeline to an airport.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Paragraph (2) of section 4041(a), as amended by title IX, is amended by striking “<quotedText>kerosene,</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Paragraph (1) of section 4041(c) is amended by striking “<quotedText>any liquid</quotedText>” and inserting “<quotedText>kerosene and any other liquid</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num><subparagraph class="inline"><num value="A">(A)</num> <content>The heading for section 4082 is amended by inserting “<quotedText>and kerosene</quotedText>” after “diesel fuel”.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">(B)</num> <content>The table of sections for subpart A of part III of subchapter A of chapter 32 is amended by inserting “<quotedText>and kerosene</quotedText>” after “diesel fuel” in the item relating to section 4082.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>Subsection (b) of section 4083 is amended by striking “<quotedText>gasoline, diesel fuel,</quotedText>” and inserting “<quotedText>taxable fuels</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>Subsection (a) of section 4093 is amended by striking “<quotedText>any liquid</quotedText>” and inserting “<quotedText>kerosene and any other liquid</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>The material following subparagraph (F) of section 6416(b)(2) is amended by inserting “<quotedText>or kerosene</quotedText>” after “diesel fuel”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <content>Paragraphs (1) and (3) of section 6427(f), and the heading for section 6427(f), are each amended by inserting “<quotedText>kerosene,</quotedText>” after “diesel fuel,”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8)</num> <content>Paragraph (2) of section 6427(f) is amended by striking “<quotedText>or diesel fuel</quotedText>” each place it appears and inserting “<quotedText>, diesel fuel, or kerosene</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9)</num> <content>Subparagraph (A) of section 6427(i)(3) is amended by striking “<quotedText>or diesel fuel</quotedText>” and inserting “<quotedText>, diesel fuel, or kerosene</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10)</num> <content>The heading for paragraph (4) of section 6427(i) is amended to read as follows: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="4">“(4)</num> <content>Special rule for refunds under subsection (1).—”.</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="11">(11)</num> <content>Paragraph (1) of section 6715(c) is amended by inserting “<quotedText>or kerosene</quotedText>” after “diesel fuel”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="12">(12)</num><subparagraph class="inline"><num value="A">(A)</num> <content>The text of section 7232 is amended by striking “<quotedText>gasoline, lubricating oil, diesel fuel</quotedText>” and inserting “<quotedText>any taxable fuel (as defined in section 4083)</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>The section heading for section 7232 is amended to read as follows: <quotedContent> <section> <num value="7232">“SEC. 7232.</num> <heading>FAILURE TO REGISTER UNDER SECTION 4101, FALSE REPRESENTATIONS OF REGISTRATION STATUS, ETC”.</heading> </section> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>The table of sections for part II of subchapter A of chapter 75 is amended by striking the item relating to section 7232 and inserting the following: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 7232.</designator> <label>Failure to register under section 4101, false representations of registration status, etc.”.</label></referenceItem> </toc> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="13">(13)</num> <content>Sections 9503(b)(1)(E) and 9508(b)(2) are each amended by striking “<quotedText>and diesel fuel</quotedText>” and inserting “<quotedText>, diesel fuel, and kerosene</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="14">(14)</num> <content>Subparagraph (B) of section 9503(b)(5) is amended by striking “<quotedText>or diesel fuel</quotedText>” and inserting “<quotedText>, diesel fuel, or kerosene</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4041">26 USC 4041 note</ref>.</p></sidenote> shall take effect on July 1, 1998.<page identifier="/us/stat/111/936">111 STAT. 936</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4081">26 USC 4081 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Floor Stock Taxes</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Imposition of tax</inline>.—</heading><content>In the case of kerosene which is held on July 1, 1998, by any person, there is hereby imposed a floor stocks tax of 24.4 cents per gallon.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Liability for tax and method of payment</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">Liability for tax</inline>.—</heading><content>A person holding kerosene on July 1, 1998, to which the tax imposed by paragraph (1) applies shall be liable for such tax.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Method of payment</inline>.—</heading><content>The tax imposed by paragraph (1) shall be paid in such manner as the Secretary shall prescribe.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <heading><inline class="smallCaps">Time for payment</inline>.—</heading><content>The tax imposed by paragraph (1) shall be paid on or before August 31, 1998.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this subsection—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Held by a person.—Kerosene shall be considered as “held by a person” if title thereto has passed to such person (whether or not delivery to the person has been made).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Secretary</inline>.—</heading><content>The term “Secretary” means the Secretary of the Treasury or his delegate.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Exception for exempt uses</inline>.—</heading><content>The tax imposed by paragraph (1) shall not apply to kerosene held by any person exclusively for any use to the extent a credit or refund of the tax imposed by section 4081 of the Internal Revenue Code of 1986 is allowable for such use.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>Exception for fuel held in vehicle tank.—No tax shall be imposed by paragraph (1) on kerosene held in the tank of a motor vehicle or motorboat.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <heading><inline class="smallCaps">Exception for certain amounts of fuel</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>No tax shall be imposed by paragraph (1) on kerosene held on July 1, 1998, by any person if the aggregate amount of kerosene held by such person on such date does not exceed 2,000 gallons. The preceding sentence shall apply only if such person submits to the Secretary (at the time and in the manner required by the Secretary) such information as the Secretary shall require for purposes of this paragraph.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Exempt fuel</inline>.—</heading><content>For purposes of subparagraph (A), there shall not be taken into account fuel held by any person which is exempt from the tax imposed by paragraph (1) by reason of paragraph (4) or (5).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <heading><inline class="smallCaps">Controlled groups</inline>.—</heading><chapeau>For purposes of this paragraph—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <heading><inline class="smallCaps">Corporations</inline>.—</heading> <subclause class="indent4 fontsize10"><num value="I">(I)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>All persons treated as a controlled group shall be treated as 1 person.</content></subclause> <subclause class="indent4 fontsize10"><num value="II">(II)</num> <heading><inline class="smallCaps">Controlled group</inline>.—</heading><content>The term “controlled group” has the meaning given to such term by subsection (a) of section 1563 of such Code; except that for such purposes the phrase “more than 50 percent” shall be substituted for the phrase “at least 80 percent” each place it appears in such subsection.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <heading><inline class="smallCaps">Nonincorporated persons under common control</inline>.—</heading><content>Under regulations prescribed by the Secretary, principles similar to the principles of clause (i) shall apply to a group of persons under common <page identifier="/us/stat/111/937">111 STAT. 937</page>control where 1 or more of such persons is not a corporation.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <heading><inline class="smallCaps">Coordination with section 4081</inline>.—</heading><content>No tax shall be imposed by paragraph (1) on kerosene to the extent that tax has been (or will be) imposed on such kerosene under section 4081 or 4091 of such Code.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8)</num> <heading><inline class="smallCaps">Other laws applicable</inline>.—</heading><content>All provisions of law, including penalties, applicable with respect to the taxes imposed by section 4081 of such Code shall, insofar as applicable and not inconsistent with the provisions of this subsection, apply with respect to the floor stock taxes imposed by paragraph (1) to the same extent as if such taxes were imposed by such section 4081.</content></paragraph> </subsection> </section> <section> <num value="1033">SEC. 1033.</num> <heading>RESTORATION OF LEAKING UNDERGROUND STORAGE TANK TRUST FUND TAXES.</heading> <content>Paragraph (3) of section 4081(d) is amended by striking “<quotedText>shall not apply after December 31, 1995</quotedText>” and inserting “<quotedText>shall apply after September 30, 1997, and before April 1, 2005</quotedText>”.</content> </section> <section> <num value="1034">SEC. 1034.</num> <heading>APPLICATION OF COMMUNICATIONS TAX TO PREPAID TELEPHONE CARDS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 4251 is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Treatment of Prepaid Telephone Cards</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of this subchapter, in the case of communications services acquired by means of a prepaid telephone card—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the face amount of such card shall be treated as the amount paid for such communications services, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>that amount shall be treated as paid when the card is transferred by any telecommunications carrier to any person who is not such a carrier.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Determination of face amount in absence of specified dollar amount</inline>.—</heading><content>In the case of any prepaid telephone card which entitles the user other than to a specified dollar amount of use, the face amount shall be determined under regulations prescribed by the Secretary.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Prepaid telephone card</inline>.—</heading><content>For purposes of this subsection, the term ‘prepaid telephone card’ means any card or other similar arrangement which permits its holder to obtain communications services and pay for such services in advance.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4251">26 USC 4251 note</ref>.</p></sidenote> shall apply to amounts paid in calendar months beginning more than 60 days after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1035">SEC. 1035.</num> <heading>EXTENSION OF TEMPORARY UNEMPLOYMENT TAX.</heading> <chapeau>Section 3301 (relating to rate of unemployment tax) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>1998</quotedText>” in paragraph (1) and inserting “<quotedText>2007</quotedText>”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<quotedText>1999</quotedText>” in paragraph (2) and inserting “<quotedText>2008</quotedText>”.<page identifier="/us/stat/111/938">111 STAT. 938</page></content></paragraph> </section> </subtitle> <subtitle> <num value="E">Subtitle E—</num><heading>Provisions Relating to Tax-Exempt Entities</heading> <section> <num value="1041">SEC. 1041.</num> <heading>EXPANSION OF LOOK-THRU RULE FOR INTEREST, ANNUITIES, ROYALTIES, AND RENTS DERIVED BY SUBSIDIARIES OF TAX-EXEMPT ORGANIZATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Paragraph (13) of section 512(b) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="13">“(13)</num> <heading><inline class="smallCaps">Special rules for certain amounts received from controlled entities</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If an organization (in this paragraph referred to as the ‘controlling organization’) receives (directly or indirectly) a specified payment from another entity which it controls (in this paragraph referred to as the ‘controlled entity’), notwithstanding paragraphs (1), (2), and (3), the controlling organization shall include such fiayment as an item of gross income derived from an unrelated trade or business to the extent such payment reduces the net unrelated income of the controlled entity (or increases any net unrelated loss of the controlled entity). There shall be allowed all deductions of the controlling organization directly connected with amounts treated as derived from an unrelated trade or business under the preceding sentence.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Net unrelated income or loss</inline>.—</heading><chapeau>For purposes of this paragraph—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Net unrelated income</inline>.—</heading><chapeau>The term ‘net unrelated income’ means—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>in the case of a controlled entity which is not exempt from tax under section 501(a), the portion of such entity’s taxable income which would be unrelated business taxable income if such entity were exempt from tax under section 501(a) and had the same exempt purposes (as defined in section 513A(a)(5)(A)) as the controlling organization, or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>in the case of a controlled entity which is exempt from tax under section 501(a), the amount of the unrelated business taxable income of the controlled entity.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Net unrelated loss</inline>.—</heading><content>The term ‘net unrelated loss’ means the net operating loss adjusted under rules similar to the rules of clause (i).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Specified payment</inline>.—</heading><content>For purposes of this paragraph, the term ‘specified payment’ means any interest, annuity, royalty, or rent.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Definition of control</inline>.—</heading><chapeau>For purposes of this paragraph—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Control</inline>.—</heading><chapeau>The term ‘control’ means—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>in the case of a corporation, ownership (by vote or value) of more than 50 percent of the stock in such corporation,</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>in the case of a partnership, ownership of more than 50 percent of the profits interests or capital interests in such partnership, or<page identifier="/us/stat/111/939">111 STAT. 939</page></content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>in any other case, ownership of more than 50 percent of the beneficial interests in the entity.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Constructive ownership</inline>.—</heading><content>Section 318<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> (relating to constructive ownership of stock) shall apply for purposes of determining ownership of stock in a corporation. Similar principles shall apply for purposes of determining ownership of interests in any other entity.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Related persons</inline>—</heading><content>The Secretary shall prescribe such rules as may be necessary or appropriate to prevent avoidance of the purposes of this paragraph through the use of related persons.”.</content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s512">26 USC 512 note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Binding contracts</inline>.—</heading><content>The amendments made by this section shall not apply to any payment made during the first 2 taxable years beginning on or after the date of the enactment of this Act if such payment is made pursuant to a written binding contract in effect on June 8, 1997, and at all times thereafter before such payment.</content></paragraph> </subsection> </section> <section> <num value="1042">SEC. 1042.</num> <heading>TERMINATION OF CERTAIN EXCEPTIONS FROM RULES RELATING TO EXEMPT ORGANIZATIONS WHICH PROVIDE COMMERCIAL-TYPE INSURANCE.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s833">26 USC 833 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subparagraphs (A) and (B) of section 1012(c)(4) of the Tax Reform Act of 1986 shall not apply to any taxable year beginning after December 31, 1997.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Special Rules</inline>.—</heading><chapeau>In the case of an organization to which section 501(m) of the Internal Revenue Code of 1986 applies solely by reason of the amendment made by subsection (a)—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>no adjustment shall be made under section 481 (or any other provision) of such Code on account of a change in its method of accounting for its first taxable year beginning after December 31, 1997, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>for purposes of determining gain or loss, the adjusted basis of any asset held on the 1st day of such taxable year shall be treated as equal to its fair market value as of such day.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Reserve Weakening After June 8, 1997</inline>.—</heading><content>Any reserve weakening after June 8, 1997, by an organization described in subsection (b) shall be treated as occurring in such organization’s 1st taxable year beginning after December 31, 1997.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Regulations</inline>.—</heading><content>The Secretary of the Treasury or his delegate may prescribe rules for providing proper adjustments for organizations described in subsection (b) with respect to short taxable years which begin during 1998 by reason of section 843 of the Internal Revenue Code of 1986.<page identifier="/us/stat/111/940">111 STAT. 940</page></content> </subsection> </section> </subtitle> <subtitle> <num value="F">Subtitle F—</num><heading>Foreign Provisions</heading> <section> <num value="1051">SEC. 1051.</num> <heading>DEFINITION OF FOREIGN PERSONAL HOLDING COMPANY INCOME.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Income From Notional Principal Contracts and Payments in Lieu of Dividends</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Paragraph (1) of section 954(c) (defining foreign personal holding company income) is amended by adding at the end the following new subparagraphs: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <heading><inline class="smallCaps">Income from notional principal contracts</inline>.—</heading><content>Net income from notional principal contracts. Any item of income, gain, deduction, or loss from a notional principal contract entered into for purposes of hedging any item described in any preceding subparagraph shall not be taken into account for purposes of this subparagraph but shall be taken into account under such other subparagraph.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <heading><inline class="smallCaps">Payments in lieu of dividends</inline>.—</heading><content>Payments in lieu of dividends which are made pursuant to an agreement to which section 1058 applies.”.</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conforming amendment</inline>.—</heading><chapeau>Subparagraph (B) of section 954(c)(1) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking the second sentence, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking “<quotedText>also</quotedText>” in the last sentence.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Exception for Dealers</inline>.—</heading><content>Paragraph (2) of section 954(c) is amended by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Exception for dealers</inline>.—</heading><content>Except as provided in subparagraph (A), (E), or (G) of paragraph (1) or by regulations, in the case of a regular dealer in property (within the meaning of paragraph (1)(B)), forward contracts, option contracts, or similar financial instruments (including notional principal contracts and all instruments referenced to commodities), there shall not be taken into account in computing foreign personal holding income any item of income, gain, deduction, or loss from any transaction (including hedging transactions) entered into in the ordinary course of such dealer’s trade or business as such a dealer.”.</content></subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s954">26 USC 954 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1052">SEC. 1052.</num> <heading>PERSONAL PROPERTY USED PREDOMINANTLY IN THE UNITED STATES TREATED AS NOT PROPERTY OF A LIKE KIND WITH RESPECT TO PROPERTY USED PREDOMINANTLY OUTSIDE THE UNITED STATES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (h) of section 1031 (relating to exchange of property held for productive use or investment) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Special Rules for Foreign Real and Personal Property</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Real property</inline>.—</heading><content>Real property located in the United States and real property located outside the United States are not property of a like kind.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Personal property</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Personal property used predominantly within the United States and personal property <page identifier="/us/stat/111/941">111 STAT. 941</page>used predominantly outside the United States are not property of a like kind.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Predominant use</inline>.—</heading><chapeau>Except as provided in subparagraph (C) and (D), the predominant use of any property shall be determined based on—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>in the case of the property relinquished in the exchange, the 2-year period ending on the date of such relinquishment, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>in the case of the property acquired in the exchange, the 2-year period beginning on the date of such acquisition.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <chapeau>Property held for less than 2 years.—Except in the case of an exchange which is part of a transaction (or series of transactions) structured to avoid the purposes of this subsection—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>only the periods the property was held by the person relinquishing the property (or any related person) shall be taken into account under subparagraph (B)(i), and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>only the periods the property was held by the person acquiring the property (or any related person) shall be taken into account under subparagraph (B)(ii).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Special rule for certain property</inline>.—</heading><content>Property described in any subparagraph of section 168(g)(4) shall be treated as used predominantly in the United States.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1031">26 USC 1031 note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendment made by this section shall apply to transfers after June 8, 1997, in taxable years ending after such date.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Binding contracts</inline>.—</heading><chapeau>The amendment made by this section shall not apply to any transfer pursuant to a written binding contract in effect on June 8, 1997, and at all times thereafter before the disposition of property. A contract shall not fail to meet the requirements of the preceding sentence solely because—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>it provides for a sale in lieu of an exchange, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>the property to be acquired as replacement property was not identified under such contract before June 9, 1997.</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="1053">SEC. 1053.</num> <heading>HOLDING PERIOD REQUIREMENT FOR CERTAIN FOREIGN TAXES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 901 is amended by redesignating subsection (k) as subsection (1) and by inserting after subsection (j) the following new subsection: <quotedContent> <num value="k">“(k)</num> <heading><inline class="smallCaps">Minimum Holding Period for Certain Taxes</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Withholding taxes</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In no event shall a credit be allowed under subsection (a) for any withholding tax on a dividend with respect to stock in a corporation if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>such stock is held by the recipient of the dividend for 15 days or less during the 30-day period beginning on the date which is 15 days before the date on which such share becomes ex-dividend with respect to such dividend, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>to the extent that the recipient of the dividend is under an obligation (whether pursuant to a short <page identifier="/us/stat/111/942">111 STAT. 942</page>sale or otherwise) to make related payments with respect to positions in substantially similar or related property.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Withholding tax</inline>.—</heading><content>For purposes of this paragraph, the term ‘withholding tax’ includes any tax determined on a gross basis; but does not include any tax which is in the nature of a prepayment of a tax imposed on a net basis.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Deemed paid taxes</inline>.—</heading><chapeau>In the case of income, war profits, or excess profits taxes deemed paid under section 853, 902, or 960 through a chain of ownership of stock in 1 or more corporations, no credit shall be allowed under subsection (a) for such taxes if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>any stock of any corporation in such chain (the ownership of which is required to obtain credit under subsection (a) for such taxes) is held for less than the period described in paragraph (1)(A)(i), or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the corporation holding the stock is under an obligation referred to in paragraph (1)(A)(ii).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <chapeau>45-day rule in the case of certain preference dividends.—In the case of stock having preference in dividends and dividends with respect to such stock which are attributable to a period or periods aggregating in excess of 366 days, paragraph (1)(A)(i) shall be applied—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>by substituting ‘45 days’ for ‘15 days’ each place it appears, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>by substituting ‘90-day period’ for ‘30-day period’.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Exception for certain taxes paid by securities dealers</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Paragraphs (1) and (2) shall not apply to any qualified tax with respect to any security held in the active conduct in a foreign country of a securities business of any person—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>who is registered as a securities broker or dealer under section 15(a) of the Securities Exchange Act of 1934,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>who is registered as a Government securities broker or dealer under section 15C(a) of such Act, or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>who is licensed or authorized in such foreign country to conduct securities activities in such country and is subject to bona fide regulation by a securities regulating authority of such country.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Qualified tax</inline>.—</heading><chapeau>For purposes of subparagraph (A), the term ‘qualified tax’ means a tax paid to a foreign country (other than the foreign country referred to in subparagraph (A)) if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the dividend to which such tax is attributable is subject to taxation on a net basis by the country referred to in subparagraph (A), and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>such country allows a credit against its net basis tax for the full amount of the tax paid to such other foreign country.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Regulations</inline>.—</heading><content>The Secretary may prescribe such regulations as may be appropriate to carry out this paragraph, including regulations to prevent the abuse of the <page identifier="/us/stat/111/943">111 STAT. 943</page>exception provided by this paragraph and to treat other taxes as qualified taxes.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Certain rules to apply</inline>.—</heading><content>For purposes of this subsection, the rules of paragraphs (3) and (4) of section 246(c) shall apply.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Treatment of bona fide sales</inline>.—</heading><content>If a person’s holding period is reduced by reason of the application of the rules of section 246(c)(4) to any contract for the bona fide sale of stock, the determination of whether such person’s holding period meets the requirements of paragraph (2) with respect to taxes deemed paid under section 902 or 960 shall be made as of the date such contract is entered into.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Taxes allowed as deduction, etc</inline>.—</heading><content>Sections 275 and 78 shall not apply to any tax which is not allowable as a credit under subsection (a) by reason of this subsection.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Notice of Withholding Taxes Paid by Regulated Investment Company</inline>.—</heading><content>Subsection (c) of section 853 (relating to foreign tax credit allowed to shareholders) is amended by adding at the end the following new sentence: “Such notice shall also include the amount of such taxes which (without regard to the election under this section) would not be allowable as a credit under section 901(a) to the regulated investment company by reason of section 901(k).”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s853">26 USC 853 note</ref>.</p></sidenote> shall apply to dividends paid or accrued more than 30 days after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1054">SEC. 1054.</num> <heading>DENIAL OF TREATY BENEFITS FOR CERTAIN PAYMENTS THROUGH HYBRID ENTITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 894 (relating to income affected by treaty) is amended by inserting after subsection (b) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Denial of Treaty Benefits for Certain Payments Through Hybrid Entities</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Application to certain payments</inline>.—</heading><chapeau>A foreign person shall not be entitled under any income tax treaty of the United States with a foreign country to any reduced rate of any withholding tax imposed by this title on an item of income derived through an entity which is treated as a partnership (or is otherwise treated as fiscally transparent) for purposes of this title if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>such item is not treated for purposes of the taxation laws of such foreign country as an item of income of such person,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the treaty does not contain a provision addressing the applicability of the treaty in the case of an item of income derived through a partnership, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>the foreign country does not impose tax on a distribution of such item of income from such entity to such person.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Regulations</inline>.—</heading><content>The Secretary shall prescribe such regulations as may be necessary or appropriate to determine the extent to which a taxpayer to which paragraph (1) does not apply shall not be entitled to benefits under any income tax treaty of the United States with respect to any payment received by, or income attributable to any activities of, an entity organized in any jurisdiction (including the United <page identifier="/us/stat/111/944">111 STAT. 944</page>States) that is treated as a partnership or is otherwise treated as fiscally transparent for purposes of this title (including a common investment trust under section 584, a grantor trust, or an entity that is disregarded for purposes of this title) and is treated as fiscally nontransparent for purposes of the tax laws of the jurisdiction of residence of the taxpayer.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s894">26 USC 894 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply upon the date of enactment of this Act.</content> </subsection> </section> <section> <num value="1055">SEC. 1055.</num> <heading>INTEREST ON UNDERPAYMENTS NOT REDUCED BY FOREIGN TAX CREDIT CARRYBACKS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (d) of section 6601 is amended by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively, and by inserting after paragraph (1) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Foreign tax credit carrybacks</inline>.—</heading><content>If any credit allowed for any taxable year is increased by reason of a carryback of tax paid or accrued to foreign countries or possessions of the United States, such increase shall not affect the computation of interest under this section for the period ending with the filing date for the taxable year in which such taxes were in fact paid or accrued, or, with respect to any portion of such credit carryback from a taxable year attributable to a net operating loss carryback or a capital loss carryback from a subsequent taxable year, such increase shall not affect the computation of interest under this section for the period ending with the filing date for such subsequent taxable year.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendment to Refunds Attributable to Foreign Tax Credit Carrybacks</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subsection (f) of section 6611 is amended by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively, and by inserting after paragraph (1) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Foreign tax credit carrybacks</inline>.—</heading><content>For purposes of subsection (a), if any overpayment of tax imposed by subtitle A results from a carryback of tax paid or accrued to foreign countries or possessions of the United States, such overpayment shall be deemed not to have been made before the filing date for the taxable year in which such taxes were in fact paid or accrued, or, with respect to any portion of such credit carryback from a taxable year attributable to a net operating loss carryback or a capital loss carryback from a subsequent taxable year, such overpayment shall be deemed not to have been made before the filing date for such subsequent taxable year.”.</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <chapeau>Paragraph (4) of section 6611(f) (as so redesignated) is amended—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by striking “<quotedText>paragraphs (1) and (2)</quotedText>” and inserting “<quotedText>PARAGRAPHS (1), (2), AND (3)</quotedText>”, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking “<quotedText>paragraph (1) or (2)</quotedText>” each place it appears and inserting “<quotedText>paragraph (1), (2), or (3)</quotedText>”.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Clause (ii) of section 6611(f)(4)(B) (as so redesignated) is amended by striking “<quotedText>and</quotedText>” at the end of subclause (I), by redesignating subclause (II) as subclause (III), and by inserting after subclause (I) the following new subclause:<page identifier="/us/stat/111/945">111 STAT. 945</page> <quotedContent> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>in the case of a carryback of taxes paid or accrued to foreign countries or possessions of the United States, the taxable year in which such taxes were in fact paid or accrued (or, with respect to any portion of such carryback from a taxable year attributable to a net operating loss carryback or a capital loss carryback from a subsequent taxable year, such subsequent taxable year), and”.</content></subclause> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>Subclause (III) of section 6611(f)(4)(B)(ii) (as so redesignated) is amended by inserting “<quotedText>(as defined in paragraph (3)(B))</quotedText>” after “credit carryback” the first place it appears.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>Section 6611 is amended by striking subsection (g) and by redesignating subsections (h) and (i) as subsections (g) and (h), respectively.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps"></inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6601">26 USC 6601 note</ref>.</p></sidenote> shall apply to foreign tax credit carrybacks arising in taxable years beginning after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1056">SEC. 1056.</num> <heading>CLARIFICATION OF PERIOD OF LIMITATIONS ON CLAIM FOR CREDIT OR REFUND ATTRIBUTABLE TO FOREIGN TAX CREDIT CARRYFORWARD.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subparagraph (A) of section 6511(d)(3) is amended by striking “<quotedText>for the year with respect to which the claim is made</quotedText>” and inserting “<quotedText>for the year in which such taxes were actually paid or accrued</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a)<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6511">26 USC 6511 note</ref>.</p></sidenote> shall apply to taxes paid or accrued in taxable years beginning after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1057">SEC. 1057.</num> <heading>REPEAL OF EXCEPTION TO ALTERNATIVE MINIMUM FOREIGN TAX CREDIT LIMIT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 59(a)(2) (relating to limitation to 90 percent of tax) is amended by striking subparagraph (C).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s59">26 USC 59 note</ref>.</p></sidenote> shall apply to taxable years beginning after the date of the enactment of this Act.</content> </subsection> </section> </subtitle> <subtitle> <num value="G">Subtitle G—</num><heading>Partnership Provisions</heading> <section> <num value="1061">SEC. 1061.</num> <heading>ALLOCATION OF BASIS AMONG PROPERTIES DISTRIBUTED BY PARTNERSHIP.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (c) of section 732 is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Allocation of Basis</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The basis of distributed properties to which subsection (a)(2) or (b) is applicable shall be allocated—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num><clause class="inline"><num value="i">(i)</num> <content>first to any unrealized receivables (as defined in section 751(c)) and inventory items (as defined in section 751(d)(2)) in an amount equal to the adjusted basis of each such property to the partnership, and</content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii)</num> <content>if the basis to be allocated is less than the sum of the adjusted bases of such properties to the partnership, then, to the extent any decrease is required in order to have the adjusted bases of such properties equal the basis to be allocated, in the manner provided in paragraph (3), and<page identifier="/us/stat/111/946">111 STAT. 946</page></content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>to the extent of any basis remaining after the allocation under subparagraph (A), to other distributed properties—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>first by assigning to each such other property such other property’s adjusted basis to the partnership, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>then, to the extent any increase or decrease in basis is required in order to have the adjusted bases of such other distributed properties equal such remaining basis, in the manner provided in paragraph (2) or (3), whichever is appropriate.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Method of allocating increase</inline>.—</heading><chapeau>Any increase required under paragraph (1)(B) shall be allocated among the properties—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>first to properties with unrealized appreciation in proportion to their respective amounts of unrealized appreciation before such increase (but only to the extent of each property’s unrealized appreciation), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>then, to the extent such increase is not allocated under subparagraph (A), in proportion to their respective fair market values.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Method of allocating decrease</inline>.—</heading><chapeau>Any decrease required under paragraph (1)(A) or (1)(B) shall be allocated—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>first to properties with unrealized depreciation in proportion to their respective amounts of unrealized depreciation before such decrease (but only to the extent of each property’s unrealized depreciation), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>then, to the extent such decrease is not allocated under subparagraph (A), in proportion to their respective adjusted bases (as adjusted under subparagraph (A)).”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s732">26 USC 732 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall apply to distributions after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1062">SEC. 1062.</num> <heading>REPEAL OF REQUIREMENT THAT INVENTORY BE SUBSTANTIALLY APPRECIATED WITH RESPECT TO SALE OR EXCHANGE OF PARTNERSHIP INTEREST.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Paragraph (2) of section 751(a) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>inventory items of the partnership,”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num><subparagraph class="inline"><num value="A">(A)</num> <content>Paragraph (1) of section 751(b) is amended by striking subparagraphs (A) and (B) and inserting the following new subparagraphs: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>partnership property which is—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>unrealized receivables, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>inventory items which have appreciated substantially in value,</content></clause> <continuation class="indent0 fontsize10">in exchange for all or a part of his interest in other partnership property (including money), or</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>partnership property (including money) other than property described in subparagraph (A)(1) or (ii) in exchange for all or a part of his interest in partnership property described in subparagraph (A)(i) or (ii),”.</content></subparagraph> </quotedContent> </content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B)</num> <content>Subsection (b) of section 751 is amended by adding at the end the following new paragraph:<page identifier="/us/stat/111/947">111 STAT. 947</page> <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Substantial appreciation</inline>.—</heading><chapeau>For purposes of paragraph (1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Inventory items of the partnership shall be considered to have appreciated substantially in value if their fair market value exceeds 120 percent of the adjusted basis to the partnership of such property.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Certain property excluded</inline>.—</heading><content>For purposes of subparagraph (A), there shall be excluded any inventory property if a principal purpose for acquiring such property was to avoid the provisions of this subsection relating to inventory items.”.</content></subparagraph> </paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Subsection (d) of section 751 is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Inventory Items</inline>.—</heading><chapeau>For purposes of this subchapter, the term ‘inventory items’ means—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>property of the partnership of the kind described in section 1221(1),</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>any other property of the partnership which, on sale or exchange by the partnership, would be considered property other than a capital asset and other than property described in section 1231,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>any other property of the partnership which, if sold or exchanged by the partnership, would result in a gain taxable under subsection (a) of section 1246 (relating to gain on foreign investment company stock), and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>any other property held by the partnership which, if held by the selling or distributee partner, would be considered property of the type described in paragraph (1), (2), or (3).”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Sections 724(d)(2), 731(a)(2)(B), 731(c)(6), 732(c)(1)(A) (as amended by the preceding section), 735(a)(2), and 735(c)(1) are each amended by striking “<quotedText>section 751(d)(2)</quotedText>” and inserting “<quotedText>section 751(d)</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s724">26 USC 724 note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendments made by this section shall apply to sales, exchanges, and distributions after the date of the enactment of this Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Binding contracts</inline>.—</heading><content>The amendments made by this section shall not apply to any sale or exchange pursuant to a written binding contract in effect on June 8, 1997, and at all times thereafter before such sale or exchange.</content></paragraph> </subsection> </section> <section> <num value="1063">SEC. 1063.</num> <heading>EXTENSION OF TIME FOR TAXING PRECONTRIBUTION GAIN.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Sections 704(c)(1)(B) and 737(b)(1) are each amended by striking “<quotedText>5 years</quotedText>” and inserting “<quotedText>7 years</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s704">26 USC 704 note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendment made by subsection (a) shall apply to property contributed to a partnership after June 8, 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Binding contracts</inline>.—</heading><content>The amendment made by subsection (a) shall not apply to any property contributed pursuant to a written binding contract in effect on June 8, 1997, and at all times thereafter before such contribution if such contract provides for the contribution of a fixed amount of property.<page identifier="/us/stat/111/948">111 STAT. 948</page></content></paragraph> </subsection> </section> </subtitle> <subtitle> <num value="H">Subtitle H—</num><heading>Pension Provisions</heading> <section> <num value="1071">SEC. 1071.</num> <heading>PENSION ACCRUED BENEFIT DISTRIBUTABLE WITHOUT CONSENT INCREASED TO $5,000.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Amendment to 1986 Code</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subparagraph (A) of section 411(a)(11) (relating to restrictions on certain mandatory distributions) is amended by striking “<quotedText>$3,500</quotedText>” and inserting “<quotedText>$5,000</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Section 411(a)(7)(B), paragraphs (1) and (2) of section 417(e), and section 457(e)(9) are each amended by striking “<quotedText>$3,500</quotedText>” each place it appears (other than the headings) and inserting “<quotedText>the dollar limit under section 411(a)(1l)(A)</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>The headings for paragraphs (1) and (2) of section 417(e) and subparagraph (A) of section 457(e)(9) are each amended by striking “<quotedText>$3,500</quotedText>” and inserting “<quotedText>dollar limit</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Amendments to ERISA</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 203(e)(1) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1053(e)(1)) is amended by striking “<quotedText>$3,500</quotedText>” and inserting “<quotedText>$5,000</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading><content>Sections 204(d)(1) and 205(g) (1) and (2) (29 U.S.C. 1054(d)(1) and 1055(g) (1) and (2)) are each amended by striking “<quotedText>$3,500</quotedText>” and inserting “<quotedText>the dollar limit under section 203(e)(1)</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s411">26 USC 411 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to plan years beginning after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1072">SEC. 1072.</num> <heading>ELECTION TO RECEIVE TAXABLE CASH COMPENSATION IN LIEU OF NONTAXABLE PARKING BENEFITS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 132(f)(4) (relating to benefits not in lieu of compensation) is amended by adding at the end the following new sentence: “This paragraph shall not apply to any qualified parking provided in lieu of compensation which otherwise would have been includible in gross income of the employee, and no amount shall be included in the gross income of the employee solely because the employee may choose between the qualified parking and compensation.”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s132">26 USC 132 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section shall apply to taxable years beginning after December 31, 1997.</content> </subsection> </section> <section> <num value="1073">SEC. 1073.</num> <heading>REPEAL OF EXCESS DISTRIBUTION AND EXCESS RETIREMENT ACCUMULATION TAX.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Repeal of Excess Distribution and Excess Retirement Accumulation Tax</inline>.—</heading><content>Section 4980A (relating to excess distributions from qualified retirement plans) is repealed.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Section 691(c)(1) is amended by striking subparagraph (C).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Section 2013 is amended by striking subsection (g).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Section 2053(c)(1)(B) is amended by striking the last sentence.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>Section 6018(a) is amended by striking paragraph (4).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s4980A">42 USC 4980A note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Dates</inline>.—<page identifier="/us/stat/111/949">111 STAT. 949</page></heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Excess distribution tax repeal</inline>.—</heading><content>Except as provided<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> in paragraph (2), the repeal made by subsection (a) shall apply to excess distributions received after December 31, 1996.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Excess retirement accumulation tax repeal</inline>.—</heading><content>The repeal made by subsection (a) with respect to section 4980A(d) of the Internal Revenue Code of 1986 and the amendments made by subsection (b) shall apply to estates of decedents dying after December 31, 1996.</content></paragraph> </subsection> </section> <section> <num value="1074">SEC. 1074.</num> <heading>INCREASE IN TAX ON PROHIBITED TRANSACTIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 4975(a) is amended by striking “<quotedText>10 percent</quotedText>” and inserting “<quotedText>15 percent</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4975">26 USC 4975 note</ref>.</p></sidenote> shall apply to prohibited transactions occurring after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1075">SEC. 1075.</num> <heading>BASIS RECOVERY RULES FOR ANNUITIES OVER MORE THAN ONE LIFE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 72(d)(1)(B) is amended by adding at the end the following new clause: <quotedContent> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <heading><inline class="smallCaps">Number of anticipated payments where more than one life</inline>.—</heading><content>If the annuity is payable over the lives of more than 1 individual, the number of anticipated payments shall be determined as follows: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <thead> <tr> <th style="text-align:left"><b xmlns="http://schemas.gpo.gov/xml/uslm">“If the combined ages of annuitants are:</b></th> <th style="text-align:right"><b xmlns="http://schemas.gpo.gov/xml/uslm">The number is:</b></th> </tr> </thead> <tbody> <tr> <td style="text-align:left" leaders="yes">Not more than 110</td> <td style="text-align:right">410.00</td> </tr> <tr> <td style="text-align:left" leaders="yes">More than 110 but not more than 120</td> <td style="text-align:right">360.00</td> </tr> <tr> <td style="text-align:left" leaders="yes">More than 120 but not more than 130</td> <td style="text-align:right">310.00</td> </tr> <tr> <td style="text-align:left" leaders="yes">More than 130 but not more than 140</td> <td style="text-align:right">260.00</td> </tr> <tr> <td style="text-align:left" leaders="yes">More than 140</td> <td style="text-align:right">210.”.</td> </tr> </tbody> </table> </content></clause> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><chapeau>Section 72(d)(1)(B)(iii) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by inserting “<quotedText>If the annuity is payable over the life of a single individual, the number of anticipated payments shall be determined as follows:</quotedText>” after the heading and before the table, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<quotedText>primary</quotedText>” in the table.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s72">26 USC 72 note</ref>.</p></sidenote> shall apply with respect to annuity starting dates beginning after December 31, 1997.</content> </subsection> </section> </subtitle> <subtitle> <num value="I">Subtitle I—</num><heading>Other Revenue Provisions</heading> <section> <num value="1081">SEC. 1081.</num> <heading>TERMINATION OF SUSPENSE ACCOUNTS FOR FAMILY CORPORATIONS REQUIRED TO USE ACCRUAL METHOD OF ACCOUNTING.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (i) of section 447 (relating to method of accounting for corporations engaged in farming) is amended by striking paragraphs (3) and (4), by redesignating paragraphs (5) and (6) as paragraphs (3) and (4), respectively, and by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Termination</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>No suspense account may be established under this subsection by any corporation required by this section to change its method of accounting for any taxable year ending after June 8, 1997.<page identifier="/us/stat/111/950">111 STAT. 950</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Phaseout of existing suspense accounts</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Each suspense account under this subsection shall be reduced (but not below zero) for each taxable year beginning after June 8, 1997, by an amount equal to the lesser of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the applicable portion of such account, or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>50 percent of the taxable income of the corporation for the taxable year, or, if the corporation has no taxable income for such year, the amount of any net operating loss (as defined in section 172(c)) for such taxable year.</content></subclause> <continuation class="indent0 fontsize10">For purposes of the preceding sentence, the amount of taxable income and net operating loss shall be determined without regard to this paragraph.</continuation> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Coordination with other reductions</inline>.—</heading><content>The amount of the applicable portion for any taxable year shall be reduced (but not below zero) by the amount of any reduction required for such taxable year under any other provision of this subsection.</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <heading><inline class="smallCaps">Inclusion in income</inline>.—</heading><content>Any reduction in a suspense account under this paragraph shall be included in gross income for the taxable year of the reduction.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Applicable portion</inline>.—</heading><content>For purposes of subparagraph (B), the term ‘applicable portion’ means, for any taxable year, the amount which would ratably reduce the amount in the account (after taking into account prior reductions) to zero over the period consisting of such taxable year and the remaining taxable years in such first 20 taxable years.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Amounts after 20th year</inline>.—</heading><content>Any amount in the account as of the close of the 20th year referred to in subparagraph (C) shall be treated as the applicable portion for each succeeding year thereafter to the extent not reduced under this paragraph for any prior taxable year after such 20th year.”.</content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s447">26 USC 447 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to taxable years ending after June 8, 1997.</content> </subsection> </section> <section> <num value="1082">SEC. 1082.</num> <heading>MODIFICATION OF TAXABLE YEARS TO WHICH NET OPERATING LOSSES MAY BE CARRIED.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Subparagraph (A) of section 172(b)(1) (relating to years to which loss may be carried) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>3</quotedText>” in clause (i) and inserting “<quotedText>2</quotedText>”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<quotedText>15</quotedText>” in clause (ii) and inserting “<quotedText>20</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Retention of 3-Year Carryback for Certain Losses</inline>.—</heading><content>Paragraph (1) of section 172(b) is amended by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <heading><inline class="smallCaps">Retention of 3-year carryback in certain cases</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subparagraph (A)(i) shall be applied by substituting ‘3 years’ for ‘2 years’ with respect to the portion of the net operating loss for the taxable year which is an eligible loss with respect to the taxpayer.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Eligible loss</inline>.—</heading><chapeau>For purposes of clause (i), the term ‘eligible loss’ means—<page identifier="/us/stat/111/951">111 STAT. 951</page></chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>in the case of an individual, losses of property arising from fire, storm, shipwreck, or other casualty, or from theft,</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>in the case of a taxpayer which is a small business, net operating losses attributable to Presidentially declared disasters (as defined in section 1033(h)(3)), and</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>in the case of a taxpayer engaged in the trade or business of farming (as defined in section 263A(e)(4)), net operating losses attributable to such Presidentially declared disasters,</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Small business</inline>.—</heading><content>For purposes of this subparagraph, the term ‘small business’ means a corporation or partnership which meets the gross receipts test of section 448(c) for the taxable year in which the loss arose (or, in the case of a sole proprietorship, which would meet such test if such proprietorship were a corporation).”.</content></clause> </subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s172">26 USC 172 note</ref>.</p></sidenote> shall apply to net operating losses for taxable years beginning after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1083">SEC. 1083.</num> <heading>MODIFICATIONS TO TAXABLE YEARS TO WHICH UNUSED CREDITS MAY BE CARRIED.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 39(a) (relating to unused credits) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in paragraph (1), by striking “<quotedText>3</quotedText>” each place it appears and inserting “<quotedText>1</quotedText>” and by striking “<quotedText>15</quotedText>” each place it appears and inserting “<quotedText>20</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in paragraph (2), by striking “<quotedText>18</quotedText>” each place it appears and inserting “<quotedText>22</quotedText>” and by striking “<quotedText>17</quotedText>” each place it appears and inserting “<quotedText>21</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s39">26 USC 39 note</ref>.</p></sidenote> shall apply to credits arising in taxable years beginning after December 31, 1997.</content> </subsection> </section> <section> <num value="1084">SEC. 1084.</num> <heading>EXPANSION OF DENIAL OF DEDUCTION FOR CERTAIN AMOUNTS PAID IN CONNECTION WITH INSURANCE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Denial of Deduction for Premiums</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Paragraph (1) of section 264(a) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>Premiums on any life insurance policy, or endowment or annuity contract, if the taxpayer is directly or indirectly a beneficiary under the policy or contract.”.</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Exceptions</inline>.—</heading><content>Section 264 is amended by redesignating subsections (b), (c), and (d) as subsections (c), (d), and (e), respectively, and by inserting after subsection (a) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Exceptions to Subsection (a)(1)</inline>.—</heading><chapeau>Subsection (a)(1) shall not apply to—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>any annuity contract described in section 72(b)(5), and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>any annuity contract to which section 72(u) applies.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Interest on Policy Loans</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Paragraph (4) of section 264(a) is amended by striking “<quotedText>individual, who</quotedText>” and all that follows and inserting “<quotedText>individual.</quotedText>”.<page identifier="/us/stat/111/952">111 STAT. 952</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Coordination with transfers for value</inline>.—</heading><content>Paragraph (2) of section 101(a) is amended by adding at the end the following new flush sentence: <quotedContent> <p class="indent0 fontsize10">“The term ‘other amounts’ in the first sentence of this paragraph includes interest paid or accrued by the transferee on indebtedness with respect to such contract or any interest therein if such interest paid or accrued is not allowable as a deduction by reason of section 264(a)(4).”.</p> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Pro Rata Allocation of Interest Expense to Policy Cash Values</inline>.—</heading><content>Section 264 is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Pro Rata Allocation of Interest Expense to Policy Cash Values</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>No deduction shall be allowed for that portion of the taxpayer’s interest expense which is allocable to unborrowed policy cash values.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Allocation</inline>.—</heading><chapeau>For purposes of paragraph (1), the portion of the taxpayer’s interest expense which is allocable to unborrowed policy cash values is an amount which bears the same ratio to such interest expense as—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the taxpayer’s average unborrowed policy cash values of life insurance policies, and annuity and endowment contracts, issued after June 8, 1997, bears to</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>the sum of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>in the case of assets of the taxpayer which are life insurance policies or annuity or endowment contracts, the average unborrowed policy cash values of such policies and contracts, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>in the case of assets of the taxpayer not described in clause (i), the average adjusted bases (within the meaning of section 1016) of such assets.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Unborrowed policy cash value</inline>.—</heading><chapeau>For purposes of this subsection, the term ‘unborrowed policy cash value’ means, with respect to any life insurance policy or annuity or endowment contract, the excess of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the cash surrender value of such policy or contract determined without regard to any surrender charge, over</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the amount of any loan with respect to such policy or contract.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Exception for certain policies and contracts</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Policies and contracts covering 2o-percent owners, officers, directors, and employees</inline>.—</heading><chapeau>Paragraph (1) shall not apply to any policy or contract owned by an entity engaged in a trade or business if such policy or contract covers only 1 individual and if such individual is (at the time first covered by the policy or contract)—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>a 20-percent owner of such entity, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>an individual (not described in clause (i)) who is an officer, director, or employee of such trade or business.</content></clause> <continuation class="indent0 fontsize10">A policy or contract covering a 20-percent owner of such entity shall not be treated as failing to meet the requirements of the preceding sentence by reason of covering the joint lives of such owner and such owner’s spouse.</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Contracts subject to current income inclusion</inline>.—</heading><content>Paragraph (1) shall not apply to any annuity contract to which section 72(u) applies.<page identifier="/us/stat/111/953">111 STAT. 953</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Coordination with paragraph (2)</inline>.—</heading><content>Any policy or contract to which paragraph (1) does not apply by reason of this paragraph shall not be taken into account under paragraph (2).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">20-percent owner</inline>.—</heading><content>For purposes of subparagraph (A), the term ‘20-percent owner’ has the meaning given such term by subsection (e)(4).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Exception for policies and contracts held by natural persons; treatment of partnerships and s corporations</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Policies and contracts held by natural persons</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>This subsection shall not apply to any policy or contract held by a natural person.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Exception where business is beneficiary</inline>.—</heading><content>If a trade or business is directly or indirectly the beneficiary under any policy or contract, such policy or contract shall be treated as held by such trade or business and not by a natural person.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Special rules</inline>.—</heading> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <heading><inline class="smallCaps">Certain trades or businesses not taken into account</inline>.—</heading><content>Clause (ii) shall not apply to any trade or business carried on as a sole proprietorship and to any trade or business performing services as an employee.</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <heading><inline class="smallCaps">Limitation on unborrowed cash value</inline>.—</heading><content>The amount of the unborrowed cash value of any policy or contract which is taken into account by reason of clause (ii) shall not exceed the benefit to which the trade or business is directly or indirectly entitled under the policy or contract.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <heading><inline class="smallCaps">Reporting</inline>.—</heading><content>The Secretary shall require such reporting from policyholders and issuers as is necessary to carry out clause (ii). Any report required under the preceding sentence shall be treated as a statement referred to in section 6724(d)(1).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Treatment of partnerships and s corporations</inline>.—</heading><content>In the case of a partnership or S corporation, this subsection shall be applied at the partnership and corporate levels.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Special rules</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Coordination with subsection (a) and section 265</inline>.—</heading><chapeau>If interest on any indebtedness is disallowed under subsection (a) or section 265—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>such disallowed interest shall not be taken into account for purposes of applying this subsection, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the amount otherwise taken into account under paragraph (2)(B) shall be reduced (but not below zero) by the amount of such indebtedness.</content></clause> </subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Coordination with section 263a</inline>.—</heading><content>This subsection shall be applied before the application of section 263A (relating to capitalization of certain expenses where taxpayer produces property).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Interest expense</inline>.—</heading><content>The term ‘interest expense’ means the aggregate amount allowable to the taxpayer as a deduction <page identifier="/us/stat/111/954">111 STAT. 954</page>for interest (within the meaning of section 265(b)(4)) for the taxable year (determined without regard to this subsection, section 265(b), and section 291).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <heading><inline class="smallCaps">Aggregation rules</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>All members of a controlled group (within the meaning of subsection (d)(5)(B)) shall be treated as 1 taxpayer for purposes of this subsection.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Treatment of insurance companies</inline>.—</heading><content>This subsection shall not apply to an insurance company subject to tax under subchapter L, and subparagraph (A) shall be applied without regard to any member of an affiliated group which is an insurance company.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Treatment of Insurance Companies</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num><subparagraph class="inline"><num value="A">(A)</num> <content>Clause (ii) of section 805(a)(4)(C) is amended by inserting “<quotedText>, or out of the increase for the taxable year in policy cash values (within the meaning of subparagraph (F)) of life insurance policies and annuity and endowment contracts to which section 264(f) applies,</quotedText>” after “tax-exempt interest”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Clause (iii) of section 805(a)(4)(D) is amended by striking “<quotedText>and</quotedText>” and inserting “<quotedText>, the increase for the taxable year in policy cash values (within the meaning of subparagraph (F)) of life insurance policies and annuity and endowment contracts to which section 264(f) applies, and</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>Paragraph (4) of section 805(a) is amended by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <heading><inline class="smallCaps">Increase in policy cash values</inline>.—</heading><chapeau>For purposes of subparagraphs (C) and (D)—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The increase in the policy cash value for any taxable year with respect to policy or contract is the amount of the increase in the adjusted cash value during such taxable year determined without regard to—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>gross premiums paid during such taxable year, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>distributions (other than amounts includible in the policyholder’s gross income) during such taxable year to which section 72(e) applies.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Adjusted cash value</inline>.—</heading><chapeau>For purposes of clause (i), the term ‘adjusted cash value’ means the cash surrender value of the policy or contract increased by the sum of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>commissions payable with respect to such policy or contract for the taxable year, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>asset management fees, surrender charges, mortality and expense charges, and any other fees or charges specified in regulations prescribed by the Secretary which are imposed (or which would be imposed were the policy or contract canceled) with respect to such policy or contract for the taxable year.”.</content></subclause> </clause> </subparagraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><subparagraph class="inline"><num value="A">(A)</num> <content>Subparagraph (B) of section 807(a)(2) is amended by striking “<quotedText>interest,</quotedText>” and inserting “<quotedText>interest and the amount of the policyholder’s share of the increase for the taxable year in policy cash values (within the meaning of section 805(a)(4)(F)) of life insurance policies and annuity and endowment contracts to which section 264(f) applies,</quotedText>”.<page identifier="/us/stat/111/955">111 STAT. 955</page></content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">(B)</num> <content>Subparagraph (B) of section 807(b)(1) is amended by striking “<quotedText>interest,</quotedText>” and inserting “<quotedText>interest and the amount of the policyholder’s share of the increase for the taxable year in policy cash values (within the meaning of section 805(a)(4)(F)) of life insurance policies and annuity and endowment contracts to which section 264(f) applies,</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Paragraph (1) of section 812(d) is amended by striking “<quotedText>and</quotedText>” at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting “<quotedText>, and</quotedText>”, and by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>the increase for any taxable year in the policy cash values (within the meaning of section 805(a)(4)(F)) of life insurance policies and annuity and endowment contracts to which section 264(f) applies.”.</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>Subparagraph (B) of section 832(b)(5) is amended by striking “<quotedText>and</quotedText>” at the end of clause (i), by striking the period at the end of clause (ii) and inserting “<quotedText>, and</quotedText>”, and by adding at the end the following new clause: <quotedContent> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>the increase for the taxable year in policy cash values (within the meaning of section 805(a)(4)(F)) of life insurance policies and annuity and endowment contracts to which section 264(f) applies.”.</content></clause> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>Subparagraph (A) of section 265(b)(4) is amended by inserting “<quotedText>, section 264,</quotedText>” before “and section 291”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s101">26 USC 101 note</ref>.</p></sidenote> shall apply to contracts issued after June 8, 1997, in taxable years ending after such date. For purposes of the preceding sentence, any material increase in the death benefit or other material change in the contract shall be treated as a new contract but the addition of covered lives shall be treated as a new contract only with respect to such additional covered lives. For purposes of this subsection, an increase in the death benefit under a policy or contract issued in connection with a lapse described in section 501(d)(2) of the Health Insurance Portability and Accountability Act of 1996 shall not be treated as a new contract.</content> </subsection> </section> <section> <num value="1085">SEC. 1085.</num> <heading>IMPROVED ENFORCEMENT OF THE APPLICATION OF THE EARNED INCOME CREDIT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Restrictions on Availability of Earned Income Credit for Taxpayers who Improperly Claimed Credit in Prior Year</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 32 is amended by redesignating subsections (k) and (1) as subsections (1) and (m), respectively, and by inserting after subsection (j) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="k">“(k)</num> <heading><inline class="smallCaps">Restrictions on Taxpayers Who Improperly Claimed Credit in Prior Year</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Taxpayers making prior fraudulent or reckless claims</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>No credit shall be allowed under this section for any taxable year in the disallowance period.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Disallowance period</inline>.—</heading><chapeau>For purposes of paragraph (1), the disallowance period is—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the period of 10 taxable years after the most recent taxable year for which there was a final determination that the taxpayer’s claim of credit under this section was due to fraud, and<page identifier="/us/stat/111/956">111 STAT. 956</page></content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the period of 2 taxable years after the most recent taxable year for which there was a final determination that the taxpayer’s claim of credit under this section was due to reckless or intentional disregard of rules and regulations (but not due to fraud).</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Taxpayers making improper prior claims</inline>.—</heading><content>In the case of a taxpayer who is denied credit under this section for any taxable year as a result of the deficiency procedures under subchapter B of chapter 63, no credit shall be allowed under this section for any subsequent taxable year unless the taxpayer provides such information as the Secretary may require to demonstrate eligibility for such credit.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Due diligence requirement on income tax return preparers</inline>.—</heading><content>Section 6695 is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Failure To Be Diligent in Determining Eligibility for Earned Income Credit</inline>.—</heading><content>Any person who is an income tax return preparer with respect to any return or claim for refund who fails to comply with due diligence requirements imposed by the Secretary by regulations with respect to determining eligibility for, or the amount of, the credit allowable by section 32 shall pay a penalty of $100 for each such failure.”.</content> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Extension procedures applicable to mathematical or clerical errors</inline>.—</heading><content>Paragraph (2) of section 6213(g) (relating to the definition of mathematical or clerical errors) is amended by striking “<quotedText>and</quotedText>” at the end of subparagraph (H), by striking the period at the end of subparagraph (I) and inserting “<quotedText>, and</quotedText>”, and by inserting after subparagraph (I) the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="J">“(J)</num> <content>an omission of information required by section 32(k)(2) (relating to taxpayers making improper prior claims of earned income credit).”.</content></subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Increase in Net Loss Disregarded for Modified Adjusted Gross Income</inline>.—</heading><content>Section 32(c)(5)(B)(iv) is amended by striking “<quotedText>50 percent</quotedText>” and inserting “<quotedText>75 percent</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Workfare Payments Not Included in Earned Income</inline>.—</heading><content>Section 32(c)(2)(B) is amended by striking “<quotedText>and</quotedText>” at the end of clause (iii), by striking the period at the end of clause (iv) and inserting “<quotedText>, and</quotedText>”, and by adding at the end the following new clause: <quotedContent> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>no amount described in subparagraph (A) received for service performed in work activities as defined in paragraph (4) or (7) of section 407(d) of the Social Security Act to which the taxpayer is assigned under any State program under part A of title IV of such Act, but only to the extent such amount is subsidized under such State program.”.</content></clause> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Certain Nontaxable Income Included in Modified Adjusted Gross Income</inline>.—</heading><chapeau>Section 32(c)(5)(B) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>and</quotedText>” at the end of clause (iii),</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking the period at the end of clause (iv)(III),</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by inserting after clause (iv)(III) the following new clauses: <quotedContent> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>interest received or accrued during the taxable year which is exempt from tax imposed by this chapter, and<page identifier="/us/stat/111/957">111 STAT. 957</page></content></clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <content>amounts received as a pension or annuity, and any distributions or payments received from an individual retirement plan, by the taxpayer during the taxable year to the extent not included in gross income.”, and</content></clause> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>by adding at the end the following new sentence: “Clause (vi) shall not include any amount which is not includible in gross income by reason of section 402(c), 403(a)(4), 403(b), 408(d) (3), (4), or (5), or 457(e)(10).”. </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s32">26 USC 32 note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>The amendments made by subsection (a) shall apply to taxable years beginning after December 31, 1996.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>The amendments made by subsections (b), (c), and (d) shall apply to taxable years beginning after December 31, 1997.</content></paragraph> </subsection> </section> <section> <num value="1086">SEC. 1086.</num> <heading>LIMITATION ON PROPERTY FOR WHICH INCOME FORECAST METHOD MAY BE USED.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Limitation</inline>.—</heading><content>Subsection (g) of section 167 is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Limitation on property for which income forecast method may be used</inline>.—</heading><chapeau>The depreciation deduction allowable under this section may be determined under the income forecast method or any similar method only with respect to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>property described in paragraph (3) or (4) of section 168(f),</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>copyrights,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>books,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>patents, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>other property specified in regulations.</content></subparagraph> <continuation class="indent0 fontsize10">Such methods may not be used with respect to any amortizable section 197 intangible (as defined in section 197(c)).”.</continuation> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Depreciation Period for Rent-To-own Property</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subparagraph (A) of section 168(e)(3) (relating to 3-year property) is amended by striking “<quotedText>and</quotedText>” at the end of clause (i), by striking the period at the end of clause (ii) and inserting “<quotedText>, and</quotedText>”, and by adding at the end the following new clause: <quotedContent> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>any qualified rent-to-own property.”.</content></clause> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">4-year class life</inline>.—</heading><content>The table contained in section 168(g)(3)(B) is amended by inserting before the first item the following new item: <quotedContent> <toc> <referenceItem><designator leaderChar="." leaderAlign="right">“(A)(iii)</designator> <target>4 ”,</target></referenceItem> </toc> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Definition of qualified rent-to-own property</inline>.—</heading><content>Subsection (i) of section 168 is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="14">“(14)</num> <heading><inline class="smallCaps">Qualified rent-to-own property</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The term ‘qualified rent-to-own property’ means property held by a rent-to-own dealer for purposes of being subject to a rent-to-own contract.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Rent-to-own dealer</inline>.—</heading><content>The term ‘rent-to-own dealer’ means a person that, in the ordinary course of business, regularly enters into rent-to-own contracts with customers for the use of consumer property, if a substantial portion of those contracts terminate and the property is returned to such person before the receipt of all payments <page identifier="/us/stat/111/958">111 STAT. 958</page>required to transfer ownership of the property from such person to the customer.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Consumer property</inline>.—</heading><content>The term ‘consumer property’ means tangible personal property of a type generally used within the home for personal use.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Rent-to-own contract</inline>.—</heading><chapeau>The term ‘rent-to-own contract’ means any lease for the use of consumer property between a rent-to-own dealer and a customer who is an individual which—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>is titled ‘Rent-to-Own Agreement’ or ‘Lease Agreement with Ownership Option,’ or uses other similar language,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>provides for level (or decreasing where no payment is less than 40 percent of the largest payment), regular periodic payments (for a payment period which is a week or month),</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>provides that legal title to such property remains with the rent-to-own dealer until the customer makes all the payments described in clause (ii) or early purchase payments required under the contract to acquire legal title to the item of property,</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>provides a beginning date and a maximum period of time for which the contract may be in effect that does not exceed 156 weeks or 36 months from such beginning date (including renewals or options to extend),</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>provides for payments within the 156-week or 36-month period that, in the aggregate, generally exceed the normal retail price of the consumer property plus interest,</content></clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <content>provides for payments under the contract that, in the aggregate, do not exceed $10,000 per item of consumer property,</content></clause> <clause class="indent3 fontsize10"><num value="vii">“(vii)</num> <content>provides that the customer does not have any legal obligation to make all the payments referred to in clause (ii) set forth under the contract, and that at the end of each payment period the customer may either continue to use the consumer property by making the payment for the next payment period or return such property to the rent-to-own dealer in good working order, in which case the customer does not incur any further obligations under the contract and is not entitled to a return of any payments previously made under the contract, and</content></clause> <clause class="indent3 fontsize10"><num value="viii">“(viii)</num> <content>provides that the customer has no right to sell, sublease, mortgage, pawn, pledge, encumber, or otherwise dispose of the consumer property until all the payments stated in the contract have been made”.</content></clause> </subparagraph> </paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s167">26 USC 167 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section shall apply to property placed in service after the date of the enactment of this Act.<page identifier="/us/stat/111/959">111 STAT. 959</page></content> </subsection> </section> <section> <num value="1087">SEC. 1087.</num> <heading>EXPANSION OF REQUIREMENT THAT INVOLUNTARILY CONVERTED PROPERTY BE REPLACED WITH PROPERTY ACQUIRED FROM AN UNRELATED PERSON.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (i) of section 1033 is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="i">“(i)</num> <heading><inline class="smallCaps">Replacement Property Must Be Acquired From Unrelated Person in Certain Cases</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If the property which is involuntarily converted is held by a taxpayer to which this subsection applies, subsection (a) shall not apply if the replacement property or stock is acquired from a related person. The preceding sentence shall not apply to the extent that the related person acquired the replacement property or stock from an unrelated person during the period applicable under subsection (a)(2)(B).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Taxpayers to which subsection applies</inline>.—</heading><chapeau>This subsection shall apply to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>a C corporation,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>a partnership in which 1 or more C corporations own, directly or indirectly (determined in accordance with section 707(b)(3)), more than 50 percent of the capital interest, or profits interest, in such partnership at the time of the involuntary conversion, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>any other taxpayer if, with respect to property which is involuntarily converted during the taxable year, the aggregate of the amount of realized gain on such property on which there is realized gain exceeds $100,000.</content></subparagraph> <continuation class="indent0 fontsize10">In the case of a partnership, subparagraph (C) shall apply<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> with respect to the partnership and with respect to each partner. A similar rule shall apply in the case of an S corporation and its shareholders.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Related person</inline>.—</heading><content>For purposes of this subsection, a person is related to another person if the person bears a relationship to the other person described in section 267(b) or 707(b)(1)”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1003">26 USC 1003 note</ref>.</p></sidenote> shall apply to involuntary conversions occurring after June 8, 1997.</content> </subsection> </section> <section> <num value="1088">SEC. 1088.</num> <heading>TREATMENT OF EXCEPTION FROM INSTALLMENT SALES RULES FOR SALES OF PROPERTY BY A MANUFACTURER TO A DEALER.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Paragraph (2) of section 811(c) of the Tax Reform Act of 1986 is hereby repealed.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s453C">26 USC 453C note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendment made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s453C">26 USC 453C note</ref>.</p></sidenote> shall apply to taxable years beginning more than 1 year after the date of the enactment of this Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Coordination with section 481</inline>.—</heading><chapeau>In the case of any taxpayer required by this section to change its method of accounting for any taxable year—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>such changes shall be treated as initiated by the taxpayer,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>such changes shall be treated as made with the consent of the Secretary of the Treasury, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>the net amount of the adjustments required to be taken into account under section 481(a) of the Internal Revenue Code of 1986 shall be taken into account ratably over the 4 taxable year period beginning with the first <page identifier="/us/stat/111/960">111 STAT. 960</page>taxable year beginning after the date of the enactment of this Act.</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="1089">SEC. 1089.</num> <heading>LIMITATIONS ON CHARITABLE REMAINDER TRUST ELIGIBILITY FOR CERTAIN TRUSTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Limitation on Noncharitable Distributions</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Paragraphs (1)(A) and (2)(A) of section 664(d) (relating to charitable remainder trusts) are each amended by inserting “<quotedText>nor more than 50 percent</quotedText>” after “not less than 5 percent”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s664">26 USC 664 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendment made by paragraph (1) shall apply to transfers in trust after June 18, 1997.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Minimum Charitable Benefit</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Charitable remainder annuity trusts.—Paragraph (1) of section 664(d) is amended by striking “<quotedText>and</quotedText>” at the end of subparagraph (B), by striking the period at the end of subparagraph (C), and by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>the value (determined under section 7520) of such remainder interest is at least 10 percent of the initial net fair market value of all property placed in the trust.”</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Charitable remainder unitrusts.—Paragraph (2) of section 664(d) is amended by striking “<quotedText>and</quotedText>” at the end of subparagraph (B), by striking the period at the end of subparagraph (C), and by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>with respect to each contribution of property to the trust, the value (determined under section 7520) of such remainder interest in such property is at least 10 percent of the net fair market value of such property as of the date such property is contributed to the trust.”.</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Void or reformed trust.—Paragraph (3) of section 2055(e) is amended by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="J">“(J)</num> <chapeau>Void or reformed trust in cases of insufficient remainder interests.—In the case of a trust that would qualify (or could be reformed to qualify pursuant to subparagraph (B)) but for failure to satisfy the requirement of paragraph (1)(D) or (2)(D) of section 664(d), such trust may be—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>declared null and void ab initio, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>changed by reformation, amendment, or otherwise to meet such requirement by reducing the payout rate or the duration (or both) of any noncharitable beneficiary’s interest to the extent necessary to satisfy such requirement,</content></clause> <continuation class="indent0 fontsize10">pursuant to a proceeding that is commenced within the period required in subparagraph (C)(iii). In a case described in clause (i), no deduction shall be allowed under this title for any transfer to the trust and any transactions entered into by the trust prior to being declared void shall be treated as entered into by the transferor”.</continuation> </subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Severance of certain additional contributions</inline>.—</heading><content>Subsection (d) of section 664 is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote> <heading><inline class="smallCaps">Severance of certain additional contributions</inline>.—</heading><chapeau>If—<page identifier="/us/stat/111/961">111 STAT. 961</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>any contribution is made to a trust which before the contribution is a charitable remainder unitrust, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>such contribution would (but for this paragraph) result in such trust ceasing to be a charitable unitrust by reason of paragraph (2)(D), such contribution shall be treated as a transfer to a separate trust under regulations prescribed by the Secretary.”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <heading><inline class="smallCaps">Conforming amendment</inline>.—</heading><content>Section 2055(e)(3)(G) is amended by inserting “<quotedText>(or other proceeding pursuant to subparagraph (J)</quotedText>” after “reformation”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <heading><inline class="smallCaps">Effective dates</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s664">26 USC 664 note</ref>.</p></sidenote> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as otherwise provided in this paragraph, the amendments made by this subsection shall apply to transfers in trust after July 28, 1997.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Special rule for certain decedents</inline>.—</heading><chapeau>The amendments made by this subsection shall not apply to transfers in trust under the terms of a will (or other testamentary instrument) executed on or before July 28, 1997, if the decedent—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>dies before January 1, 1999, without having republished the will (or amended such instrument) by codicil or otherwise, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>was on July 28, 1997, under a mental disability to change the disposition of his property and did not regain his competence to dispose of such property before the date of his death.</content></clause> </subparagraph> </paragraph> </subsection> </section> <section> <num value="1090">SEC. 1090.</num> <heading>EXPANDED SSA RECORDS FOR TAX ENFORCEMENT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Expansion of Coordinated Enforcement Efforts of IRS and HHS Office of Child Support Enforcement</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">State reporting of ssn of child</inline>.—</heading><content>Section 454A(e)(4)(D) of the Social Security Act (42 U.S.C. 654a(e)(4)(D)) is amended by striking “<quotedText>the birth date of any child</quotedText>” and inserting “<quotedText>the birth date and, beginning not later than October 1, 1999, the social security number, of any child</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Federal case registry of child support orders</inline>.—</heading><chapeau>Section 453(h) of such Act (42 U.S.C. 653(h)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in paragraph (2), by adding at the end the following: “<quotedText>Beginning not later than October 1, 1999, the information referred to in paragraph (1) shall include the names and social security numbers of the children of such individuals.</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Administration of federal tax laws</inline>.—</heading><content>The Secretary of the Treasury shall have access to the information described in paragraph (2) for the purpose of administering those sections of the Internal Revenue Code of 1986 which grant tax benefits based on support or residence of children.”.</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Coordination between secretaries</inline>.—</heading><content>The Secretary<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s653">42 USC 653 note</ref>.</p></sidenote> of the Treasury and the Secretary of Health and Human Services shall consult regarding the implementation issues resulting from the amendments made by this subsection, including interim deadlines for States that may be able before October 1, 1999, to provide the data required by such amendments. The Secretaries shall report to Congress on the results of such<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> consultation.<page identifier="/us/stat/111/962">111 STAT. 962</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s653">42 USC 653 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendments made by this subsection shall take effect on October 1, 1998.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Required Submission of SSN’s on Applications</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Section 205(c)(2) of the Social Security Act (42 U.S.C. 405(c)(2)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in subparagraph (B)(ii), by adding at the end the following new sentence: “With respect to an application for a social security account number for an individual who has not attained the age of 18 before such application, such evidence shall include the information described in subparagraph (C)(ii).”,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in the second sentence of subparagraph (C)(ii), insert “<quotedText>the Commissioner of Social Security and</quotedText>” after “available to”, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num> <content>The Commissioner of Social Security shall share with the Secretary of the Treasury the information obtained by the Commissioner pursuant to the second sentence of subparagraph (B)(ii) and to subparagraph (C)(ii) for the purpose of administering those sections of the Internal Revenue Code of 1986 which grant tax benefits based on support or residence of children.”.</content></subparagraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s405">42 USC 405 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective dates</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>The amendment made by paragraph (1)(A) shall apply to applications made after the date which is 180 days after the date of the enactment of this Act.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>The amendments made by subparagraphs (B) and (C) of paragraph (1) shall apply to information obtained on, before, or after the date of the enactment of this Act.</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="1091">SEC. 1091.</num> <heading>MODIFICATION OF ESTIMATED TAX SAFE HARBORS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Clause (i) of section 6654(d)(1)(C) (relating to limitation on use of preceding year’s tax) is amended to read as follows: <quotedContent> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content><p>If the adjusted gross income shown on the return of the individual for the preceding taxable year beginning in any calendar year exceeds $150,000, clause (ii) of subparagraph (B) shall be applied by substituting the applicable percentage for ‘100 percent’. For purposes of the preceding sentence, the applicable percentage shall be determined in accordance with the following table:</p> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <thead> <tr> <th style="text-align:left"><b xmlns="http://schemas.gpo.gov/xml/uslm">“If the preceding taxable year begins in:</b></th> <th style="text-align:right"><b xmlns="http://schemas.gpo.gov/xml/uslm">The applicable percentage is:</b></th> </tr> </thead> <tbody> <tr> <td style="text-align:left" leaders="yes">1998, 1999, or 2000</td> <td style="text-align:right">105</td> </tr> <tr> <td style="text-align:left" leaders="yes">2001</td> <td style="text-align:right">112</td> </tr> <tr> <td style="text-align:left" leaders="yes">2002 or thereafter</td> <td style="text-align:right">110</td> </tr> </tbody> </table> <p class="indent0 fontsize10">This clause shall not apply in the case of a preceding taxable year beginning in calendar year 1997.”.</p> </content></clause> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6654">26 USC 6654 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section shall apply with respect to any installment payment for taxable years beginning after December 31, 1997.<page identifier="/us/stat/111/963">111 STAT. 963</page></content> </subsection> </section> </subtitle> <num value="XI">TITLE XI—</num><heading>SIMPLIFICATION AND OTHER FOREIGN-RELATED PROVISIONS</heading> <subtitle> <num value="A">Subtitle A—</num><heading>General Provisions</heading> <section> <num value="1101">SEC. 1101.</num> <heading>CERTAIN INDIVIDUALS EXEMPT FROM FOREIGN TAX CREDIT LIMITATION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Section 904 (relating to limitations on foreign tax credit) is amended by redesignating subsection (j) as subsection (k) and by inserting after subsection (i) the following new subsection: <quotedContent> <num value="j">“(j)</num> <heading><inline class="smallCaps">Certain Individuals Exempt</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of an individual to whom this subsection applies for any taxable year—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the limitation of subsection (a) shall not apply,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>no taxes paid or accrued by the individual during such taxable year may be deemed paid or accrued under subsection (c) in any other taxable year, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>no taxes paid or accrued by the individual during any other taxable year may be deemed paid or accrued under subsection (c) in such taxable year.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Individuals to whom subsection applies</inline>.—</heading><chapeau>This subsection shall apply to an individual for any taxable year if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the entire amount of such individual’s gross income for the taxable year from sources without the United States consists of qualified passive income,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the amount of the creditable foreign taxes paid or accrued by the individual during the taxable year does not exceed $300 ($600 in the case of a joint return), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>such individual elects to have this subsection apply for the taxable year.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this subsection—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Qualified passive income</inline>.—</heading><chapeau>The term ‘qualified passive income’ means any item of gross income if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>such item of income is passive income (as defined in subsection (d)(2)(A) without regard to clause (iii) thereof), and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>such item of income is shown on a payee statement furnished to the individual.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Creditable foreign taxes</inline>.—</heading><content>The term ‘creditable foreign taxes’ means any taxes for which a credit is allowable under section 901; except that such term shall not include any tax unless such tax is shown on a payee statement furnished to such individual.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Payee statement</inline>.—</heading><content>The term ‘payee statement’ has the meaning given to such term by section 6724(d)(2).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Estates and trusts not eligible</inline>.—</heading><content>This subsection shall not apply to any estate or trust.”.</content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a)<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s904">26 USC 904 note</ref>.</p></sidenote> shall apply to taxable years beginning after December 31, 1997.</content> </subsection> </section> <section> <num value="1102">SEC. 1102.</num> <heading>EXCHANGE RATE USED IN TRANSLATING FOREIGN TAXES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Accrued Taxes Translated by Using Average Rate for Year to Which Taxes Relate</inline>.—<page identifier="/us/stat/111/964">111 STAT. 964</page></heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subsection (a) of section 986 (relating to translation of foreign taxes) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Foreign Income Taxes</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Translation of accrued taxes</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>For purposes of determining the amount of the foreign tax credit, in the case of a taxpayer who takes foreign income taxes into account when accrued, the amount of any foreign income taxes (and any adjustment thereto) shall be translated into dollars by using the average exchange rate for the taxable year to which such taxes relate.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Exception for certain taxes</inline>.—</heading><chapeau>Subparagraph (A) shall not apply to any foreign income taxes—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>paid after the date 2 years after the close of the taxable year to which such taxes relate, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>paid before the beginning of the taxable year to which such taxes relate.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Exception for inflationary currencies</inline>.—</heading><content>Subparagraph (A) shall not apply to any foreign income taxes the liability for which is denominated in any inflationary currency (as determined under regulations).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Cross reference</inline>.—</heading> <content><br /><p class="indent0 fontsize10"><b>“For adjustments where tax is not paid within 2 years, see section 905(c).</b></p> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Translation of taxes to which paragraph (1) does not apply</inline>.—</heading><chapeau>For purposes of determining the amount of the foreign tax credit, in the case of any foreign income taxes to which subparagraph (A) of paragraph (1) does not apply—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>such taxes shall be translated into dollars using the exchange rates as of the time such taxes were paid to the foreign country or possession of the United States, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>any adjustment to the amount of such taxes shall be translated into dollars using—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>except as provided in clause (ii), the exchange rate as of the time when such adjustment is paid to the foreign country or possession, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>in the case of any refund or credit of foreign income taxes, using the exchange rate as of the time of the original payment of such foreign income taxes.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Foreign income taxes</inline>.—</heading><content>For purposes of this subsection, the term ‘foreign income taxes’ means any income, war profits, or excess profits taxes paid or accrued to any foreign country or to any possession of the United States.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Adjustment when not paid within 2 years after year to which taxes relate</inline>.—</heading><content>Subsection (c) of section 905 is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Adjustments to Accrued Taxes</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>If—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>accrued taxes when paid differ from the amounts claimed as credits by the taxpayer,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>accrued taxes are not paid before the date 2 years after the close of the taxable year to which such taxes relate, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Notification.</p></sidenote> <content>any tax paid is refunded in whole or in part, the taxpayer shall notify the Secretary, who shall redetermine the amount of the tax for the year or years affected. The <page identifier="/us/stat/111/965">111 STAT. 965</page>Secretary may prescribe adjustments to the pools of post-1986 foreign income taxes and the pools of post-1986 undistributed earnings under sections 902 and 960 in lieu of the redetermination under the preceding sentence.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Special rule for taxes not paid within 2 years</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in subparagraph (B), in making the redetermination under paragraph (1), no credit shall be allowed for accrued taxes not paid before the date referred to in subparagraph (B) of paragraph (1).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Taxes subsequently paid</inline>.—</heading><chapeau>Any such taxes if subsequently paid—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <chapeau>shall be taken into account—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>in the case of taxes deemed paid under section 902 or section 960, for the taxable year in which paid (and no redetermination shall be made under this section by reason of such payment), and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>in any other case, for the taxable year to which such taxes relate, and</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>shall be translated as provided in section 986(a)(2)(A).</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Adjustments</inline>.—</heading><content>The amount of tax (if any) due on any redetermination under paragraph (1) shall be paid by the taxpayer on notice and demand by the Secretary, and the amount of tax overpaid (if any) shall be credited or refunded to the taxpayer in accordance with subchapter B of chapter 66 (section 6511 et seq.).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Bond requirements</inline>.—</heading><content>In the case of any tax accrued but not paid, the Secretary, as a condition precedent to the allowance of the credit provided in this subpart, may require the taxpayer to give a bond, with sureties satisfactory to and approved by the Secretary, in such sum as the Secretary may require, conditioned on the payment by the taxpayer of any amount of tax found due on any such redetermination. Any such bond shall contain such further conditions as the Secretary may require.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Other special rules</inline>.—</heading><content>In any redetermination under paragraph (1) by the Secretary of the amount of tax due from the taxpayer for the year or years affected by a refund, the amount of the taxes refunded for which credit has been allowed under this section shall be reduced by the amount of any tax described in section 901 imposed by the foreign country or possession of the United States with respect to such refund; but no credit under this subpart, or deduction under section 164, shall be allowed for any taxable year with respect to any such tax imposed on the refund. No interest shall be assessed or collected on any amount of tax due on any redetermination by the Secretary, resulting from a refund to the taxpayer, for any period before the receipt of such refund, except to the extent interest was paid by the foreign country or possession of the United States on such refund for such period.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Authority To Use Average Rates</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subsection (a) of section 986 (as amended by subsection (a)) is amended by redesignating paragraph (3) <page identifier="/us/stat/111/966">111 STAT. 966</page>as paragraph (4) and inserting after paragraph (2) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote> <heading><inline class="smallCaps">Authority to permit use of average rates</inline>.—</heading><content>To the extent prescribed in regulations, the average exchange rate for the period (specified in such regulations) during which the taxes or adjustment is paid may be used instead of the exchange rate as of the time of such payment.”.</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Determination of average rates</inline>.—</heading><content>Subsection (c) of section 989 is amended by striking “<quotedText>and</quotedText>” at the end of paragraph (4), by striking the period at the end of paragraph (5) and inserting “<quotedText>, and</quotedText>”, and by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>setting forth procedures for determining the average exchange rate for any period.”.</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading><content>Subsection (b) of section 989 is amended by striking “weighted” each place it appears.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s986">26 USC 986 note</ref>.</p></sidenote> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendments made by subsections (a)(1) and (b) shall apply to taxes paid or accrued in taxable years beginning after December 31, 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s905">26 USC 905 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Subsection (a)(2)</inline>.—</heading><content>The amendment made by subsection (a)(2) shall apply to taxes which relate to taxable years beginning after December 31, 1997.</content></paragraph> </subsection> </section> <section> <num value="1103">SEC. 1103.</num> <heading>ELECTION TO USE SIMPLIFIED SECTION 904 LIMITATION FOR ALTERNATIVE MINIMUM TAX.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Subsection (a) of section 59 (relating to alternative minimum tax foreign tax credit) is amended by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Election to use simplified section 904 limitation</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In determining the alternative minimum tax foreign tax credit for any taxable year to which an election under this paragraph applies—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>subparagraph (B) of paragraph (1) shall not apply, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>the limitation of section 904 shall be based on the proportion which—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the taxpayer’s taxable income (as determined for purposes of the regular tax) from sources without the United States (but not in excess of the taxpayer’s entire alternative minimum taxable income), bears to</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the taxpayer’s entire alternative minimum taxable income for the taxable year.</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Election</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>An election under this paragraph may be made only for the taxpayer’s first taxable year which begins after December 31, 1997, and for which the taxpayer claims an alternative minimum tax foreign tax credit.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> <heading><inline class="smallCaps">Election revocable only with consent</inline>.—</heading><content>An election under this paragraph, once made, shall apply to the taxable year for which made and all subsequent taxable years unless revoked with the consent of the Secretary.”.</content></clause> </subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s59">26 USC 59 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section shall apply to taxable years beginning after December 31, 1997.<page identifier="/us/stat/111/967">111 STAT. 967</page></content> </subsection> </section> <section> <num value="1104">SEC. 1104.</num> <heading>TREATMENT OF PERSONAL TRANSACTIONS BY INDIVIDUALS UNDER FOREIGN CURRENCY RULES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Subsection (e) of section 988 (relating to application to individuals) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Application to Individuals</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The preceding provisions of this section shall not apply to any section 988 transaction entered into by an individual which is a personal transaction.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Exclusion for certain personal transactions</inline>.—</heading><chapeau>If—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>nonfunctional currency is disposed of by an individual in any transaction, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>such transaction is a personal transaction, no gain shall be recognized for purposes of this subtitle by reason of changes in exchange rates after such currency was acquired by such individual and before such disposition. The preceding sentence shall not apply if the gain which would otherwise be recognized on the transaction exceeds $200.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Personal transactions</inline>.—</heading><chapeau>For purposes of this subsection, the term ‘personal transaction’ means any transaction entered into by an individual, except that such term shall not include any transaction to the extent that expenses properly allocable to such transaction meet the requirements of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>section 162 (other than traveling expenses described in subsection (a)(2) thereof), or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>section 212 (other than that part of section 212 dealing with expenses incurred in connection with taxes).”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s988">26 USC 988 note</ref>.</p></sidenote> shall apply to taxable years beginning after December 31, 1997.</content> </subsection> </section> <section> <num value="1105">SEC. 1105.</num> <heading>FOREIGN TAX CREDIT TREATMENT OF DIVIDENDS FROM NONCONTROLLED SECTION 902 CORPORATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Separate Basket Only To Apply to Pre-2003 Earnings</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>In general.—Subparagraph (E) of section 904(d)(1) is amended to read as follows: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>in the case of a corporation, dividends from noncontrolled section 902 corporations out of earnings and profits accumulated in taxable years beginning before January 1, 2003,”.</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Aggregation of non-pfics</inline>.—</heading><content>Subparagraph (E) of section 904(d)(2) (relating to noncontrolled section 902 corporations) is amended by adding at the end the following new clause: <quotedContent> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <heading><inline class="smallCaps">All non-pfics treated as one</inline>.—</heading><content>All noncontrolled section 902 corporations which are not passive foreign investment companies (as defined in section 1297) shall be treated as one noncontrolled section 902 corporation for purposes of paragraph (1).”.</content></clause> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading><content>Subparagraphs (C)(iii)(II) and (D) of section 904(d)(2) are each amended by inserting “<quotedText>out of earnings and profits accumulated in taxable years beginning before January 1, 2003</quotedText>” after “corporation”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Application of Look-Thru Rules to Dividends of Noncontrolled Section 902 Corporations Attributable to Post-2002 Earnings</inline>.—</heading><content>Section 904(d) is amended by redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively, and by inserting after paragraph (3) the following new paragraph:<page identifier="/us/stat/111/968">111 STAT. 968</page> <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Look-thru applies to dividends from noncontrolled section 902 corporations</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of this subsection, any applicable dividend shall be treated as income in a separate category in proportion to the ratio of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the portion of the earnings and profits described in subparagraph (B)(ii) attributable to income in such category, to</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the total amount of such earnings and profits.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Applicable dividend</inline>.—</heading><chapeau>For purposes of subparagraph (A), the term ‘applicable dividend’ means any dividend—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>from a noncontrolled section 902 corporation with respect to the taxpayer, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>paid out of earnings and profits accumulated in taxable years beginning after December 31, 2002.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> <heading><inline class="smallCaps">Special rules</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Rules similar to the rules of paragraph (3)(F) shall apply for purposes of this paragraph.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Earnings and profits</inline>.—</heading><chapeau>For purposes of this paragraph and paragraph (1)(E)—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The rules of section 316 shall apply.</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <heading><inline class="smallCaps">Regulations</inline>.—</heading><content>The Secretary may prescribe regulations regarding the treatment of distributions out of earnings and profits for periods prior to the taxpayer’s acquisition of such stock.”.</content></subclause> </clause> </subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s904">26 USC 904 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to taxable years beginning after December 31, 2002.</content> </subsection> </section> </subtitle> <subtitle> <num value="B">Subtitle B—</num><heading>Treatment of Controlled Foreign Corporations</heading> <section> <num value="1111">SEC. 1111.</num> <heading>GAIN ON CERTAIN STOCK SALES BY CONTROLLED FOREIGN CORPORATIONS TREATED AS DIVIDENDS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Section 964 (relating to miscellaneous provisions) is amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Gain on Certain Stock Sales by Controlled Foreign Corporations Treated as Dividends</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If a controlled foreign corporation sells or exchanges stock in any other foreign corporation, gain recognized on such sale or exchange shall be included in the gross income of such controlled foreign corporation as a dividend to the same extent that it would have been so included under section 1248(a) if such controlled foreign corporation were a United States person. For purposes of determining the amount which would have been so includible, the determination of whether such other foreign corporation was a controlled foreign corporation shall be made without regard to the preceding sentence.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Same country exception not applicable</inline>.—</heading><content>Clause (i) of section 954(c)(3)(A) shall not apply to any amount treated as a dividend by reason of paragraph (1).<page identifier="/us/stat/111/969">111 STAT. 969</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Clarification of deemed sales</inline>.—</heading><content>For purposes of this subsection, a controlled foreign corporation shall be treated as having sold or exchanged any stock if, under any provision of this subtitle, such controlled foreign corporation is treated as having gain from the sale or exchange of such stock.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Amendment of Section 904(d)</inline>.—</heading><content>Clause (i) of section 904(d)(2)(E) is amended by striking “<quotedText>and except as provided in regulations, the taxpayer was a United States shareholder in such corporation</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>The amendment made by subsection (a) shall apply<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s964">26 USC 964 note</ref>.</p></sidenote> to gain recognized on transactions occurring after the date of the enactment of this Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>The amendment made by subsection (b) shall apply<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s904">26 USC 904 note</ref>.</p></sidenote> to distributions after the date of the enactment of this Act.</content></paragraph> </subsection> </section> <section> <num value="1112">SEC. 1112.</num> <heading>MISCELLANEOUS MODIFICATIONS TO SUBPART F.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Section 1248 Gain Taken Into Account in Determining Pro Rata Share</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Paragraph (2) of section 951(a) (defining pro rata share of subpart F income) is amended by adding at the end thereof the following new sentence: “For purposes of subparagraph (B), any gain included in the gross income of any person as a dividend under section 1248 shall be treated as a distribution received by such person with respect to the stock involved.”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendment made by paragraph<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s951">26 USC 951 note</ref>.</p></sidenote> (1) shall apply to dispositions after the date of the enactment of this Act.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Basis Adjustments in Stock Held by Foreign Corporation</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 961 (relating to adjustments to basis of stock in controlled foreign corporations and of other property) is amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Basis Adjustments in Stock Held by Foreign Corporation</inline>.—</heading><content><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote>Under regulations prescribed by the Secretary, if a United States shareholder is treated under section 958(a)(2) as owning any stock in a controlled foreign corporation which is actually owned by another controlled foreign corporation, adjustments similar to the adjustments provided by subsections (a) and (b) shall be made to the basis of such stock in the hands of such other controlled foreign corporation, but only for the purposes of determining the amount included under section 951 in the gross income of such United States shareholder (or any other United States shareholder who acquires from any person any portion of the interest of such United States shareholder by reason of which such shareholder was treated as owning such stock, but only to the extent of such portion, and subject to such proof of identity of such interest as the Secretary may prescribe by regulations).”.</content> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendment made by paragraph (1) shall apply for purposes of determining inclusions for taxable years of United States shareholders beginning after December 31, 1997.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Clarification of Treatment of Branch Tax Exemptions or Reductions</inline>.—<page identifier="/us/stat/111/970">111 STAT. 970</page></heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subsection (b) of section 952 is amended by adding at the end thereof the following new sentence: “For purposes of this subsection, any exemption (or reduction) with respect to the tax imposed by section 884 shall not be taken into account.”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s952">26 USC 952 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendment made by paragraph<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s961">26 USC 961 note</ref>.</p></sidenote> (1) shall apply to taxable years beginning after December 31, 1986.</content></paragraph> </subsection> </section> <section> <num value="1113">SEC. 1113.</num> <heading>INDIRECT FOREIGN TAX CREDIT ALLOWED FOR CERTAIN LOWER TIER COMPANIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Section 902 Credit</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subsection (b) of section 902 (relating to deemed taxes increased in case of certain 2nd and 3rd tier foreign corporations) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Deemed Taxes Increased in Case of Certain Lower Tier Corporations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>If—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>any foreign corporation is a member of a qualified group, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>such foreign corporation owns 10 percent or more of the voting stock of another member of such group from which it receives dividends in any taxable year,</content></subparagraph> <continuation class="indent0 fontsize10">such foreign corporation shall be deemed to have paid the same proportion of such other member’s post-1986 foreign income taxes as would be determined under subsection (a) if such foreign corporation were a domestic corporation.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Qualified group</inline>.—</heading><chapeau>For purposes of paragraph (1), the term ‘qualified group’ means—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the foreign corporation described in subsection (a), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>any other foreign corporation if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the domestic corporation owns at least 5 percent of the voting stock of such other foreign corporation indirectly through a chain of foreign corporations connected through stock ownership of at least 10 percent of their voting stock,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the foreign corporation described in subsection (a) is the first tier corporation in such chain, and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>such other corporation is not below the sixth tier in such chain.</content></clause> </subparagraph> <continuation class="indent0 fontsize10">The term ‘qualified group’ shall not include any foreign corporation below the third tier in the chain referred to in clause (i) unless such foreign corporation is a controlled foreign corporation (as defined in section 957) and the domestic corporation is a United States shareholder (as defined in section 951(b)) in such foreign corporation. Paragraph (1) shall apply to those taxes paid by a member of the qualified group below the third tier only with respect to periods during which it was a controlled foreign corporation.”.</continuation> </paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Subparagraph (B) of section 902(c)(3) is amended by adding “<quotedText>or</quotedText>” at the end of clause (i) and by striking clauses (ii) and (iii) and inserting the following new clause: <quotedContent> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the requirements of subsection (b)(2) are met with respect to such foreign corporation.”.<page identifier="/us/stat/111/971">111 STAT. 971</page></content></clause> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Subparagraph (B) of section 902(c)(4) is amended by striking “<quotedText>3rd foreign corporation</quotedText>” and inserting “<quotedText>sixth tier foreign corporation</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>The heading for paragraph (3) of section 902(c) is amended by striking “<quotedText><inline class="smallCaps">where domestic corporation acquires 10 percent of foreign corporation</inline></quotedText>” and inserting “<quotedText><inline class="smallCaps">where foreign corporation first qualifies</inline></quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>Paragraph (3) of section 902(c) is amended by striking “<quotedText>ownership</quotedText>” each place it appears.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Section 960 Credit</inline>.—</heading><content>Paragraph (1) of section 960(a) (relating to special rules for foreign tax credits) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Deemed paid credit</inline>.—</heading><content>For purposes of subpart A of<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> this part, if there is included under section 951(a) in the gross income of a domestic corporation any amount attributable to earnings and profits of a foreign corporation which is a member of a qualified group (as defined in section 902(b)) with respect to the domestic corporation, then, except to the extent provided in regulations, section 902 shall be applied as if the amount so included were a dividend paid by such foreign corporation (determined by applying section 902(c) in accordance with section 904(d)(3)(B)).”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s902">26 USC 902 note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendments made by this section shall apply to taxes of foreign corporations for taxable years of such corporations beginning after the date of enactment of this Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Special rule</inline>.—</heading><content>In the case of any chain of foreign corporations described in clauses (i) and (ii) of section 902(b)(2)(B) of the Internal Revenue Code of 1986 (as amended by this section), no liquidation, reorganization, or similar transaction in a taxable year beginning after the date of the enactment of this Act shall have the effect of permitting taxes to be taken into account under section 902 of the Internal Revenue Code of 1986 which could not have been taken into account under such section but for such transaction.</content></paragraph> </subsection> </section> </subtitle> <subtitle> <num value="C">Subtitle C—</num><heading>Treatment of Passive Foreign Investment Companies</heading> <section> <num value="1121">SEC. 1121.</num> <heading>UNITED STATES SHAREHOLDERS OF CONTROLLED FOREIGN CORPORATIONS NOT SUBJECT TO PFIC INCLUSION.</heading> <content>Section 1296 is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Exception for United States Shareholders of Controlled Foreign Corporations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>For purposes of this part, a corporation shall not be treated with respect to a shareholder as a passive foreign investment company during the qualified portion of such shareholder’s holding period with respect to stock in such corporation.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Qualified portion</inline>.—</heading><chapeau>For purposes of this subsection, the term ‘qualified portion’ means the portion of the shareholder’s holding period—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>which is after December 31, 1997, and<page identifier="/us/stat/111/972">111 STAT. 972</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>during which the shareholder is a United States shareholder (as defined in section 951(b)) of the corporation and the corporation is a controlled foreign corporation.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">New holding period if qualified portion ends</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in subparagraph (B), if the qualified portion of a shareholder’s holding period with respect to any stock ends after December 31, 1997, solely for purposes of this part, the shareholder’s holding period with respect to such stock shall be treated as beginning as of the first day following such period.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Exception</inline>.—</heading><content>Subparagraph (A) shall not apply if such stock was, with respect to such shareholder, stock in a passive foreign investment company at any time before the qualified portion of the shareholder’s holding period with respect to such stock and no election under section 1298(b)(1)is made”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></section> <section> <num value="1122">SEC. 1122.</num> <heading>ELECTION OF MARK TO MARKET FOR MARKETABLE STOCK IN PASSIVE FOREIGN INVESTMENT COMPANY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Part VI of subchapter P of chapter 1 is amended by redesignating subpart C as subpart D, by redesignating sections 1296 and 1297 as sections 1297 and 1298, respectively, and by inserting after subpart B the following new subpart: <quotedContent> <subpart> <num value="C">“Subpart C—</num><heading>Election of Mark to Market For Marketable Stock</heading> <toc> <referenceItem role="section"><designator>“Sec. 1296.</designator> <label>Election of mark to market for marketable stock.</label></referenceItem> </toc> <section> <num value="2196">“SEC. 1296.</num> <heading>ELECTION OF MARK TO MARKET FOR MARKETABLE STOCK.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><chapeau>In the case of marketable stock in a passive foreign investment company which is owned (or treated under subsection (g) as owned) by a United States person at the close of any taxable year of such person, at the election of such person—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>If the fair market value of such stock as of the close of such taxable year exceeds its adjusted basis, such United States person shall include in gross income for such taxable year an amount equal to the amount of such excess.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <chapeau>If the adjusted basis of such stock exceeds the fair market value of such stock as of the close of such taxable year, such United States person shall be allowed a deduction for such taxable year equal to the lesser of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the amount of such excess, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the unreversed inclusions with respect to such stock.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Basis Adjustments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The adjusted basis of stock in a passive foreign investment company—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>shall be increased by the amount included in the gross income of the United States person under subsection (a)(1) with respect to such stock, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>shall be decreased by the amount allowed as a deduction to the United States person under subsection (a)(2) with respect to such stock.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Special rule for stock constructively owned</inline>.—</heading><chapeau>In the case of stock in a passive foreign investment company <page identifier="/us/stat/111/973">111 STAT. 973</page>which the United States person is treated as owning under subsection (g)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the adjustments under paragraph (1) shall apply<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> to such stock in the hands of the person actually holding such stock but only for purposes of determining the subsequent treatment under this chapter of the United States person with respect to such stock, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>similar adjustments shall be made to the adjusted basis of the property by reason of which the United States person is treated as owning such stock.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Character and Source Rules</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Ordinary treatment</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Gain</inline>.—</heading><content>Any amount included in gross income under subsection (a)(1), and any gain on the sale or other disposition of marketable stock in a passive foreign investment company (with respect to which an election under this section is in effect), shall be treated as ordinary income.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Loss</inline>.—</heading><chapeau>Any—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>amount allowed as a deduction under subsection (a)(2), and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>loss on the sale or other disposition of marketable stock in a passive foreign investment company (with respect to which an election under this section is in effect) to the extent that the amount of such loss does not exceed the unreversed inclusions with respect to such stock,</content></clause> <continuation class="indent0 fontsize10">shall be treated as an ordinary loss. The amount so treated shall be treated as a deduction allowable in computing adjusted gross income.</continuation> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Source</inline>.—</heading><content>The source of any amount included in gross income under subsection (a)(1) (or allowed as a deduction under subsection (a)(2)) shall be determined in the same manner as if such amount were gain or loss (as the case may be) from the sale of stock in the passive foreign investment company.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Unreversed Inclusions</inline>.—</heading><chapeau>For purposes of this section, the term ‘unreversed inclusions’ means, with respect to any stock in a passive foreign investment company, the excess (if any) of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the amount included in gross income of the taxpayer under subsection (a)(1) with respect to such stock for prior taxable years, over</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the amount allowed as a deduction under subsection (a)(2) with respect to such stock for prior taxable years.</content></paragraph> <continuation class="indent0 fontsize10">The amount referred to in paragraph (1) shall include any amount which would have been included in gross income under subsection (a)(1) with respect to such stock for any prior taxable year but for section 1291.</continuation> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Marketable Stock</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘marketable stock’ means—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>any stock which is regularly traded on—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>a national securities exchange which is registered with the Securities and Exchange Commission or the national market system established pursuant to section 11A of the Securities and Exchange Act of 1934, or<page identifier="/us/stat/111/974">111 STAT. 974</page></content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>any exchange or other market which the Secretary determines has rules adequate to carry out the purposes of this part,</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>to the extent provided in regulations, stock in any foreign corporation which is comparable to a regulated investment company and which offers for sale or has outstanding any stock of which it is the issuer and which is redeemable at its net asset value, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>to the extent provided in regulations, any option on stock described in subparagraph (A) or (B).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Special rule for regulated investment companies</inline>.—</heading><content>In the case of any regulated investment company which is offering for sale or has outstanding any stock of which it is the issuer and which is redeemable at its net asset value, all stock in a passive foreign investment company which it owns directly or indirectly shall be treated as marketable stock <sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote>for purposes of this section. Except as provided in regulations, similar treatment as marketable stock shall apply in the case of any other regulated investment company which publishes net asset valuations at least annually.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Treatment of Controlled Foreign Corporations Which are Shareholders in Passive Foreign Investment Companies</inline>.—</heading><chapeau>In the case of a foreign corporation which is a controlled foreign corporation and which owns (or is treated under subsection (g) as owning) stock in a passive foreign investment company—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> <content>this section (other than subsection (c)(2)) shall apply to such foreign corporation in the same manner as if such corporation were a United States person, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <chapeau>for purposes of subpart F of part III of subchapter N—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>any amount included in gross income under subsection (a)(1) shall be treated as foreign personal holding company income described in section 954(c)(1)(A), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>any amount allowed as a deduction under subsection (a)(2) shall be treated as a deduction allocable to foreign personal holding company income so described.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Stock Owned Through Certain Foreign Entities</inline>.—</heading><chapeau>Except as provided in regulations—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>For purposes of this section, stock owned, directly or indirectly, by or for a foreign partnership or foreign trust or foreign estate shall be considered as being owned proportionately by its partners or beneficiaries. Stock considered to be owned by a person by reason of the application of the preceding sentence shall, for purposes of applying such sentence, be treated as actually owned by such person.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Treatment of certain dispositions</inline>.—</heading><chapeau>In any case in which a United States person is treated as owning stock in a passive foreign investment company by reason of paragraph (1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>any disposition by the United States person or by any other person which results in the United States person being treated as no longer owning such stock, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>any disposition by the person owning such stock, shall be treated as a disposition by the United States person of the stock in the passive foreign investment company.<page identifier="/us/stat/111/975">111 STAT. 975</page></content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Coordination With Section 851(b)</inline>.—</heading><content>For purposes of paragraphs (2) and (3) of section 851(b), any amount included in gross income under subsection (a) shall be treated as a dividend.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="i">“(i)</num> <heading><inline class="smallCaps">Stock Acquired From a Decedent</inline>.—</heading><content>In the case of stock of a passive foreign investment company which is acquired by bequest, devise, or inheritance (or by the decedent’s estate) and with respect to which an election under this section was in effect as of the date of the decedent’s death, notwithstanding section 1014, the basis of such stock in the hands of the person so acquiring it shall be the adjusted basis of such stock in the hands of the decedent immediately before his death (or, if lesser, the basis which would have been determined under section 1014 without regard to this subsection).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="j">“(j)</num> <heading><inline class="smallCaps">Coordination With Section 1291 for First Year of Election</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Taxpayers other than regulated investment companies</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>If the taxpayer elects the application of this section with respect to any marketable stock in a corporation after the beginning of the taxpayer’s holding period in such stock, and if the requirements of subparagraph (B) are not satisfied, section 1291 shall apply to—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>any distributions with respect to, or disposition of, such stock in the first taxable year of the taxpayer for which such election is made, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>any amount which, but for section 1291, would have been included in gross income under subsection (a) with respect to such stock for such taxable year in the same manner as if such amount were gain on the disposition of such stock.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Requirements</inline>.—</heading><content>The requirements of this subparagraph are met if, with respect to each of such corporation’s taxable years for which such corporation was a passive foreign investment company and which begin after December 31, 1986, and included any portion of the taxpayer’s holding period in such stock, such corporation was treated as a qualified electing fund under this part with respect to the taxpayer.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Special rules for regulated investment companies</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>If a regulated investment company elects the application of this section with respect to any marketable stock in a corporation after the beginning of the taxpayer’s holding period in such stock, then, with respect to such company’s first taxable year for which such company elects the application of this section with respect to such stock—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>section 1291 shall not apply to such stock with respect to any distribution or disposition during, or amount included in gross income under this section for, such first taxable year, but</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>such regulated investment company’s tax under this chapter for such first taxable year shall be increased by the aggregate amount of interest which would have been determined under section 1291(c)(3) if section 1291 were applied without regard to this subparagraph.<page identifier="/us/stat/111/976">111 STAT. 976</page></content></clause> <continuation class="indent0 fontsize10">Clause (ii) shall not apply if for the preceding taxable year the company elected to mark to market the stock held by such company as of the last day of such preceding taxable year.</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Disallowance of deduction</inline>.—</heading><content>No deduction shall be allowed to any regulated investment company for the increase in tax under subparagraph (A)(ii).</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="k">“(k)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> <heading><inline class="smallCaps">Election</inline>.—</heading><chapeau>This section shall apply to marketable stock in a passive foreign investment company which is held by a United States person only if such person elects to apply this section with respect to such stock. Such an election shall apply to the taxable year for which made and all subsequent taxable years unless—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>such stock ceases to be marketable stock, or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the Secretary consents to the revocation of such election.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="l">“(l)</num> <heading><inline class="smallCaps">Transition Rule for Individuals Becoming Subject to United States Tax</inline>.—</heading><content>If any individual becomes a United States person in a taxable year beginning after December 31, 1997, solely for purposes of this section, the adjusted basis (before adjustments under subsection (b)) of any marketable stock in a passive foreign investment company owned by such individual on the first day of such taxable year shall be treated as being the greater of its fair market value on such first day or its adjusted basis on such first day.”.</content> </subsection> </section> </subpart> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Coordination With Interest Charge, Etc</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Paragraph (1) of section 1291(d) is amended by adding at the end the following new flush sentence: <quotedContent> <p class="indent0 fontsize10">“Except as provided in section 1296(j), this section also shall not apply if an election under section 1296(k) is in effect for the taxpayer’s taxable year.”.</p> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>The subsection heading for subsection (d) of section 1291 is amended by striking “<quotedText><inline class="smallCaps">Subpart B</inline></quotedText>” and inserting “<quotedText><inline class="smallCaps">Subparts B and C</inline></quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Subparagraph (A) of section 1291(a)(3) is amended to read as follows: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Holding period</inline>.—</heading><chapeau>The taxpayer’s holding period shall be determined under section 1223; except that—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>for purposes of applying this section to an excess distribution, such holding period shall be treated as ending on the date of such distribution, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>if section 1296 applied to such stock with respect to the taxpayer for any prior taxable year, such holding period shall be treated as beginning on the first day of the first taxable year beginning after the last taxable year for which section 1296 so applied.”.</content></clause> </subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Treatment of Mark-to-Market Gain Under Section 4982</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Subsection (e) of section 4982 is amended by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Treatment of gain recognized under section 1296</inline>.—</heading><chapeau>For purposes of determining a regulated investment company’s ordinary income—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote><content>notwithstanding paragraph (1)(C), section 1296 shall be applied as if such company’s taxable year ended on October 31, and<page identifier="/us/stat/111/977">111 STAT. 977</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>any ordinary gain or loss from an actual disposition of stock in a passive foreign investment company during the portion of the calendar year after October 31 shall be taken into account in determining such regulated investment company’s ordinary income for the following calendar year.</content></subparagraph> <continuation class="indent0 fontsize10">In the case of a company making an election under paragraph (4), the preceding sentence shall be applied by substituting the last day of the company’s taxable year for October 31”.</continuation> </paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Subsection (b) of section 852 is amended by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="10">“(10)</num> <heading><inline class="smallCaps">Special rule for certain losses on stock in passive foreign investment company</inline>.—</heading><content>To the extent provided in regulations, the taxable income of a regulated investment company (other than a company to which an election under section 4982(e)(4) applies) shall be computed without regard to any net reduction in the value of any stock of a passive foreign investment company with respect to which an election under section 1296(k) is in effect occurring after October 31 of the taxable year, and any such reduction shall be treated as occurring on the first day of the following taxable year.”.</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Subsection (c) of section 852 is amended by inserting after “<quotedText>October 31 of such year</quotedText>” the following: “, without regard to any net reduction in the value of any stock of a passive foreign investment company with respect to which an election under section 1296(k) is in effect occurring after October 31 of such year”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Sections 532(b)(4) and 542(c)(10) are each amended by striking “<quotedText>section 1296</quotedText>” and inserting “<quotedText>section 1297</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Subsection (f) of section 551 is amended by striking “<quotedText>section 1297(b)(5)</quotedText>” and inserting “<quotedText>section 1298(b)(5)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Subsections (a)(1) and (d) of section 1293 are each amended by striking “<quotedText>section 1297(a)</quotedText>” and inserting “<quotedText>section 1298(a)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>Paragraph (3) of section 1297(b), as redesignated by subsection (a), is hereby repealed.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>The table of sections for subpart D of part VI of subchapter P of chapter 1, as redesignated by subsection (a), is amended to read as follows: <toc> <referenceItem role="section"><designator>“Sec. 1297.</designator> <label>Passive foreign investment company.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 1298.</designator> <label>Special rules.”.</label></referenceItem> </toc> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>The table of subparts for part VI of subchapter P of chapter 1 is amended by striking the last item and inserting the following new items: <quotedContent> <referenceItem role="section"><designator>“Subpart C.</designator> <label>Election of mark to market for marketable stock.</label></referenceItem> <referenceItem role="section"><designator>“Subpart D.</designator> <label>General provisions.”</label></referenceItem> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Clarification of Gain Recognition Election</inline>.—</heading><content>The last sentence of section 1298(b)(1), as so redesignated, is amended by inserting “<quotedText>(determined without regard to the preceding sentence)</quotedText>” after “investment company”.</content> </subsection> </section> <section> <num value="1123">SEC. 1123.</num> <heading>VALUATION OF ASSETS FOR PASSIVE FOREIGN INVESTMENT COMPANY DETERMINATION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 1297, as redesignated by section 1122, is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Methods for Measuring Assets</inline>.—<page identifier="/us/stat/111/978">111 STAT. 978</page></heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Determination using value</inline>.—</heading><chapeau>The determination under subsection (a)(2) shall be made on the basis of the value of the assets of a foreign corporation if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>such corporation is a publicly traded corporation for the taxable year, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>paragraph (2) does not apply to such corporation for the taxable year.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Determination using adjusted bases</inline>.—</heading><chapeau>The determination under subsection (a)(2) shall be based on the adjusted bases (as determined for the purposes of computing earnings and profits) of the assets of a foreign corporation if such corporation is not described in paragraph (1)(A) and such corporation—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>is a controlled foreign corporation, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>elects the application of this paragraph.</content></subparagraph> <continuation class="indent0 fontsize10">An election under subparagraph (B), once made, may be revoked only with the consent of the Secretary.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Publicly traded corporation</inline>.—</heading><chapeau>For purposes of this subsection, a foreign corporation shall be treated as a publicly traded corporation if the stock in the corporation is regularly traded on—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>a national securities exchange which is registered with the Securities and Exchange Commission or the national market system established pursuant to section UA of the Securities and Exchange Act of 1934, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>any exchange or other market which the Secretary determines has rules adequate to carry out the purposes of this subsection.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><chapeau>Section 1297(a), as redesignated by section 1122, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>(by value)</quotedText>” and inserting “<quotedText>(as determined in accordance with subsection (e))</quotedText>”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking the last two sentences.</content></paragraph> </subsection> </section> <section> <num value="1124">SEC. 1124.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s532">26 USC 532 note</ref>.</p></sidenote> <heading>EFFECTIVE DATE.</heading> <chapeau>The amendments made by this subtitle shall apply to—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>taxable years of United States persons beginning after December 31, 1997, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>taxable years of foreign corporations ending with or within such taxable years of United States persons.</content></paragraph> </section> </subtitle> <subtitle> <num value="D">Subtitle D—</num><heading>Repeal of Excise Tax on Transfers to Foreign Entities</heading> <section> <num value="1131">SEC. 1131.</num> <heading>REPEAL OF EXCISE TAX ON TRANSFERS TO FOREIGN ENTITIES; RECOGNITION OF GAIN ON CERTAIN TRANSFERS TO FOREIGN TRUSTS AND ESTATES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Repeal of Excise Tax</inline>.—</heading><content>Chapter 5 (relating to transfers to avoid income tax) is hereby repealed.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Recognition of Gain on Certain Transfers to Foreign Trusts and Estates</inline>.—</heading><content>Subpart F of part I of subchapter J of chapter 1 is amended by adding at the end the following new section:<page identifier="/us/stat/111/979">111 STAT. 979</page> <quotedContent> <section> <num value="684">“SEC. 684.</num> <heading>RECOGNITION OF GAIN ON CERTAIN TRANSFERS TO CERTAIN FOREIGN TRUSTS AND ESTATES.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Except as provided in regulations, in the case of any transfer of property by a United States person to a foreign estate or trust, for purposes of this subtitle, such transfer shall be treated as a sale or exchange for an amount equal to the fair market value of the property transferred, and the transferor shall recognize as gain the excess of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the fair market value of the property so transferred, over</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the adjusted basis (for purposes of determining gain) of such property in the hands of the transferor.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <content>Exception.—Subsection (a) shall not apply to a transfer to a trust by a United States person to the extent that any person is treated as the owner of such trust under section 671.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Treatment of Trusts Which Become Foreign Trusts</inline>.—</heading><content>If a trust which is not a foreign trust becomes a foreign trust, such trust shall be treated for purposes of this section as having transferred, immediately before becoming a foreign trust, all of its assets to a foreign trust.”.</content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Other Anti-Avoidance Provisions Replacing Repealed Excise Tax</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Gain recognition on exchanges involving foreign persons.—Section 1035 is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Exchanges Involving Foreign Persons</inline>.—</heading><content>To the extent provided in regulations, subsection (a) shall not apply to any exchange having the effect of transferring property to any person other than a United States person.”.</content> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Transfers to foreign corporations</inline>.—</heading><content>Section 367 is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Other Transfers</inline>.—</heading><chapeau>To the extent provided in regulations, if a United States person transfers property to a foreign corporation as paid-in surplus or as a contribution to capital (in a transaction not otherwise described in this section), such transfer shall be treated as a sale or exchange for an amount equal to the fair market value of the property transferred, and the transferor shall recognize as gain the excess of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the fair market value of the property so transferred, over</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the adjusted basis (for purposes of determining gain) of such property in the hands of the transferor.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Certain transfers to partnerships</inline>.—</heading><content>Section 721 is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Regulations Relating to Certain Transfers to Partnerships</inline>.—</heading><content>The Secretary may provide by regulations that subsection (a) shall not apply to gain realized on the transfer of property to a partnership if such gain, when recognized, will be includible in the gross income of a person other than a United States person.”.</content> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Repeal of u.s. source treatment of deemed royalties</inline>.—</heading><content>Subparagraph (C) of section 367(d)(2) is amended to read as follows: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Amounts received treated as ordinary income</inline>.—</heading><content>For purposes of this chapter, any amount included in gross income by reason of this subsection shall be treated as ordinary income.”.<page identifier="/us/stat/111/980">111 STAT. 980</page></content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <heading><inline class="smallCaps">Transfers of intangibles to partnerships</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Subsection (d) of section 367 is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Regulations relating to transfers of intangibles to partnerships</inline>.—</heading><content>The Secretary may provide by regulations that the rules of paragraph (2) also apply to the transfer of intangible property by a United States person to a partnership in circumstances consistent with the purposes of this subsection.”.</content></paragraph> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Section 721 is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Transfers of Intangibles</inline>.—</heading> <content class="indent0 fontsize10"><b>“For regulatory authority to treat intangibles transferred to a partnership as sold, see section 367(d)(3).”.</b></content> </subsection> </quotedContent> </content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Technical and Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Subsection (h) of section 814 is amended by striking “<quotedText>or 1491</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Section 1057 (relating to election to treat transfer to foreign trust, etc., as taxable exchange) is hereby repealed.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Section 6422 is amended by striking paragraph (5) and by redesignating paragraphs (6) through (13) as paragraphs (5) through (12), respectively.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>The table of chapters for subtitle A is amended by striking the item relating to chapter 5.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>The table of sections for part IV of subchapter O of chapter 1 is amended by striking the item relating to section 1057.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>The table of sections for subpart F of part I of subchapter J of chapter 1 is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 684.</designator> <label>Recognition of gain on certain transfers to certain foreign trusts and estates.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s367">26 USC 367 note</ref>.</p></sidenote><heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall take effect on the date of the enactment of this Act.</content> </subsection> </section> </subtitle> <subtitle> <num value="E">Subtitle E—</num><heading>Information Reporting</heading> <section> <num value="1141">SEC. 1141.</num> <heading>CLARIFICATION OF APPLICATION OF RETURN REQUIREMENT TO FOREIGN PARTNERSHIPS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 6031 (relating to return of partnership income) is amended by adding at the end the following new subsection: <quotedContent> <num value="e">“(e)</num> <heading><inline class="smallCaps">Foreign Partnerships</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Exception for foreign partnership</inline>.—</heading><content>Except as provided in paragraph (2), the preceding provisions of this section shall not apply to a foreign partnership.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Certain foreign partnerships required to file return</inline>.—</heading><chapeau>Except as provided in regulations prescribed by the Secretary, this section shall apply to a foreign partnership for any taxable year if for such year, such partnership has—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>gross income derived from sources within the United States, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>gross income which is effectively connected with the conduct of a trade or business within the United States.<page identifier="/us/stat/111/981">111 STAT. 981</page></content></subparagraph> <continuation class="indent0 fontsize10">The Secretary may provide simplified filing procedures for foreign partnerships to which this section applies.”.</continuation> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Sanction for Failure by Foreign Partnership To Comply With Section 6031 To Include Denial of Deductions</inline>.—</heading><chapeau>Subsection (f) of section 6231 is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>LOSSES and</quotedText>” in the heading and inserting “<quotedText>Deductions, Losses, and</quotedText>”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<quotedText>loss or</quotedText>” each place it appears and inserting “<quotedText>deduction, loss, or</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6031">26 USC 6031 note</ref>.</p></sidenote> shall apply to taxable years beginning after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1142">SEC. 1142.</num> <heading>CONTROLLED FOREIGN PARTNERSHIPS SUBJECT TO INFORMATION REPORTING COMPARABLE TO INFORMATION REPORTING FOR CONTROLLED FOREIGN CORPORATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>So much of section 6038 (relating to information with respect to certain foreign corporations) as precedes paragraph (2) of subsection (a) is amended to read as follows: <quotedContent> <section> <num value="6038">“SEC. 6038.</num> <heading>INFORMATION REPORTING WITH RESPECT TO CERTAIN FOREIGN CORPORATIONS AND PARTNERSHIPS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Requirement</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Every United States person shall furnish, with respect to any foreign business entity which such person controls, such information as the Secretary may prescribe relating to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the name, the principal place of business, and the nature of business of such entity, and the country under whose laws such entity is incorporated (or organized in the case of a partnership);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>in the case of a foreign corporation, its post-1986 undistributed earnings (as defined in section 902(c));</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>a balance sheet for such entity listing assets, liabilities, and capital;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <chapeau>transactions between such entity and—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>such person,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>any corporation or partnership which such person controls, and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <chapeau>any United States person owning, at the time the transaction takes place—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>in the case of a foreign corporation, 10 percent or more of the value of any class of stock outstanding of such corporation, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>in the case of a foreign partnership, at least a 10-percent interest in such partnership; and</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num><clause class="inline"><num value="i">(i)</num> <content>in the case of a foreign corporation, a description of the various classes of stock outstanding, and a list showing the name and address of, and number of shares held by, each United States person who is a shareholder of record owning at any time during the annual accounting period 5 percent or more in value of any class of stock outstanding of such foreign corporation, and</content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii)</num> <content>information comparable to the information described in clause (i) in the case of a foreign partnership.<page identifier="/us/stat/111/982">111 STAT. 982</page></content></clause> </subparagraph> <continuation class="indent0 fontsize10">The Secretary may also require the furnishing of any other information which is similar or related in nature to that specified in the preceding sentence or which the Secretary determines to be appropriate to carry out the provisions of this title.”.</continuation> </paragraph> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Subsection (e) of section 6038 (relating to definitions) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by redesignating paragraphs (1) and (2) as paragraphs (2) and (4), respectively,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by inserting Before paragraph (2) (as so redesignated) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Foreign business entity</inline>.—</heading><content>The term “foreign business entity’ means a foreign corporation and a foreign partnership.”, and</content></paragraph> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by inserting after paragraph (2) (as so redesignated) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Partnership-related definitions</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Control</inline>.—</heading><content>A person is in control of a partnership if such person owns directly or indirectly more than a 50 percent interest in such partnership.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">50-percent interest</inline>.—</heading><chapeau>For purposes of subparagraph (A), a 50-percent interest in a partnership is—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>an interest equal to 50 percent of the capital interest, or 50 percent of the profits interest, in such partnership, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>to the extent provided in regulations, an interest to which 50 percent of the deductions or losses of such partnership are allocated.</content></clause> <continuation class="indent0 fontsize10">For purposes of the preceding sentence, rules similar to the rules of section 267(c) (other than paragraph (3)) shall apply.</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">10-percent interest</inline>.—</heading><content>A 10-percent interest in a partnership is an interest which would be described in subparagraph (B) if ‘10 percent’ were substituted for ‘50 percent’ each place it appears.”.</content></subparagraph> </paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Clerical amendment</inline>.—</heading><content>The paragraph heading for paragraph (2) of section 6038(e) (as so redesignated) is amended by inserting “<quotedText>OF corporation</quotedText>” after “Control”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Modification of Sanctions on Partnerships and Corporations for Failure To Furnish Information</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Subsection (b) of section 6038 is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>$1,000</quotedText>” each place it appears and inserting “<quotedText>$10,000</quotedText>”, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking “<quotedText>$24,000</quotedText>” in paragraph (2) and inserting “<quotedText>$50,000</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <content>Reporting by 10-Percent Partners.—Subsection (a) of section 6038 is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Information required from 10-percent partner of controlled foreign partnership</inline>.—</heading><content>In the case of a foreign partnership which is controlled by United States persons holding at least 10-percent interests (but not by any one United States person), the Secretary may require each United States person who holds a 10-percent interest in such partnership to furnish information relating to such partnership, including <page identifier="/us/stat/111/983">111 STAT. 983</page>information relating to such partner’s ownership interests in the partnership and allocations to such partner of partnership items.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Technical Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>The following provisions of section 6038 are each amended by striking “<quotedText>foreign corporation</quotedText>” each place it appears and inserting “<quotedText>foreign business entity</quotedText>”:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Paragraphs (2) and (3) of subsection (a).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Subsection (b).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>Subsection (c) other than paragraph (1)(B) thereof.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>Subsection (d).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>Subsection (e)(4) (as redesignated by subsection (b)).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Subparagraph (B) of section 6038(c)(1) is amended by inserting “<quotedText>in the case of a foreign business entity which is a foreign corporation,</quotedText>” after “(B)”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Paragraph (8) of section 318(b) is amended by striking “<quotedText>6038(d)(1)</quotedText>” and inserting “<quotedText>6038(d)(2)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>Paragraph (4) of section 901(k) is amended by striking “<quotedText>foreign corporation</quotedText>” and inserting “<quotedText>foreign corporation or partnership</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>The table of sections for subpart A of part III of subchapter A of chapter 61 is amended by striking the item relating to section 6038 and inserting the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 6038.</designator> <label>Information reporting with respect to certain foreign corporations and partnerships.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s318">26 USC 318 note</ref>.</p></sidenote> shall apply to annual accounting periods beginning after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1143">SEC. 1143.</num> <heading>MODIFICATIONS RELATING TO RETURNS REQUIRED TO BE FILED BY REASON OF CHANGES IN OWNERSHIP INTERESTS IN FOREIGN PARTNERSHIP.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">No Return Required Unless Changes Involve 10-Percent Interest in Partnership</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subsection (a) of section 6046A (relating to returns as to interests in foreign partnerships) is amended by adding at the end the following new sentence: “Paragraphs<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> (1) and (2) shall apply to any acquisition or disposition only if the United States person directly or indirectly holds at least a 10-percent interest in such partnership either before or after such acquisition or disposition, and paragraph (3) shall apply to any change only if the change is equivalent to at least a 10-percent interest in such partnership.”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">10-percent interest</inline>.—</heading><content>Section 6046A is amended by redesignating subsection (d) as subsection (e) and by inserting after subsection (c) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">10-Percent Interest</inline>.—</heading><content>For purposes of subsection (a), a 10-percent interest in a partnership is an interest described in section 6038(e)(3)(C)”.</content> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Modification of Penalty on Failure to Report Changes in Ownership Interests in Foreign Corporations and Partnerships</inline>.—</heading><content>Subsection (a) of section 6679 (relating to failure to file returns, etc., with respect to foreign corporations or foreign partnerships) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Civil Penalty</inline>.—<page identifier="/us/stat/111/984">111 STAT. 984</page></heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In addition to any criminal penalty provided by law, any person required to file a return under section 6035, 6046, or 6046A who fails to file such return at the time provided in such section, or who files a return which does not show the information required pursuant to such section, shall pay a penalty of $10,000, unless it is shown that such failure is due to reasonable cause.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Increase in penalty where failure continues after notification</inline>.—</heading><content>If any failure described in paragraph (1) continues for more than 90 days after the day on which the Secretary mails notice of such failure to the United States person, such person shall pay a penalty (in addition to the amount required under paragraph (1)) of $10,000 for each 30-day period (or fraction thereof) during which such failure continues after the expiration of such 90-day period. The increase in any penalty under this paragraph shall not exceed $50,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Reduced penalty for returns relating to foreign personal holding companies</inline>.—</heading><content>In the case of a return required under section 6035. paragraph (1) shall be applied by substituting ‘$1,000’ for ‘$10,000’, and paragraph (2) shall not apply.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6046A">26 USC 6046A note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to transfers and changes after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1144">SEC. 1144.</num> <heading>TRANSFERS OF PROPERTY TO FOREIGN PARTNERSHIPS SUBJECT TO INFORMATION REPORTING COMPARABLE TO INFORMATION REPORTING FOR SUCH TRANSFERS TO FOREIGN CORPORATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Paragraph (1) of section 6038B(a) (relating to notice of certain transfers to foreign corporations) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <chapeau>transfers property to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>a foreign corporation in an exchange described in section 332, 351, 354, 355, 356, or 361, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>a foreign partnership in a contribution described in section 721 or in any other contribution described in regulations prescribed by the Secretary,”.</content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Exceptions</inline>.—</heading><content>Section 6038B is amended by redesignating subsection (b) as subsection (c) and by inserting after subsection (a) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Exceptions for Certain Transfers to Foreign Partnerships; Special Rule</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> <heading><inline class="smallCaps">Exceptions</inline>.—</heading><chapeau>Subsection (a)(1)(B) shall apply to a transfer by a United States person to a foreign partnership only if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the United States person holds (immediately after the transfer) directly or indirectly at least a 10-percent interest (as defined in section 6046A(d)) in the partnership, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the value of the property transferred (when added to the value of the property transferred by such person or any related person to such partnership or a related partnership during the 12-month period ending on the date of the transfer) exceeds $100,000.<page identifier="/us/stat/111/985">111 STAT. 985</page></content></subparagraph> <continuation class="indent0 fontsize10">For purposes of the preceding sentence, the value of any transferred property is its fair market value at the time of its transfer.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Special rule</inline>.—</heading><content>If by reason of an adjustment under section 482 or otherwise, a contribution described in subsection (a)(1) is deemed to have been made, such contribution shall be treated for purposes of this section as having been made not earlier than the date specified by the Secretary.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Modification of Penalty Applicable to Foreign Corporations and Partnerships</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Paragraph (1) of section 6038B(b) is amended by striking “<quotedText>equal to</quotedText>” and all that follows and inserting “<quotedText>equal to 10 percent of the fair market value of the property at the time of the exchange (and, in the case of a contribution described in subsection (a)(1)(B), such person shall recognize gain as if the contributed property had been sold for such value at the time of such contribution).</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Limit on penalty</inline>.—</heading><content>Section 6038B(b) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Limit on penalty</inline>.—</heading><content>The penalty under paragraph (1) with respect to any exchange shall not exceed $100,000 unless the failure with respect to such exchange was due to intentional disregard.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6038B">26 USC 6038B note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendments made by this section note shall apply to transfers made after the date of the enactment of this Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Election of retroactive effect</inline>.—</heading><content>Section 1494(c) of the Internal Revenue Code of 1986 shall not apply to any transfer after August 20, 1996, if all applicable reporting requirements under section 6038B of such Code (as amended by this section) are satisfied. The Secretary of the Treasury or his delegate may prescribe simplified reporting requirements under the preceding sentence.</content></paragraph> </subsection> </section> <section> <num value="1145">SEC. 1145.</num> <heading>EXTENSION OF STATUTE OF LIMITATIONS FOR FOREIGN TRANSFERS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Paragraph (8) of section 6501(c) (relating to failure to notify Secretary under section 6038B) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <heading><inline class="smallCaps">Failure to notify secretary of certain foreign transfers</inline>.—</heading><content>In the case of any information which is required to be reported to the Secretary under section 6038, 6038A, 6038B, 6046, 6046A, or 6048, the time for assessment of any tax imposed by this title with respect to any event or period to which such information relates shall not expire before the date which is 3 years after the date on which the Secretary is furnished the information required to be reported under such section.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall apply to information the due date for the reporting of which is after the date of the enactment of this Act.<page identifier="/us/stat/111/986">111 STAT. 986</page></content> </subsection> </section> <section> <num value="1146">SEC. 1146.</num> <heading>INCREASE IN FILING THRESHOLDS FOR RETURNS AS TO ORGANIZATION OF FOREIGN CORPORATIONS AND ACQUISITIONS OF STOCK IN SUCH CORPORATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subsection (a) of section 6046 (relating to returns as to organization or reorganization of foreign corporations and as to acquisitions of their stock) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Requirement of return</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>A return complying with the requirements of subsection (b) shall be made by—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>each United States citizen or resident who becomes an officer or director of a foreign corporation if a United States person (as defined in section 7701(a)(30)) meets the stock ownership requirements of paragraph (2) with respect to such corporation,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>each United States person—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>who acquires stock which, when added to any stock owned on the date of such acquisition, meets the stock ownership requirements of paragraph (2) with respect to a foreign corporation, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>who acquires stock which, without regard to stock owned on the date of such acquisition, meets the stock ownership requirements of paragraph (2) with respect to a foreign corporation,</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>each person (not described in subparagraph (B)) who is treated as a United States shareholder under section 953(c) with respect to a foreign corporation, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>each person who becomes a United States person while meeting the stock ownership requirements of paragraph (2) with respect to stock of a foreign corporation. In the case of a foreign corporation with respect to which any person is treated as a United States shareholder under section 953(c), subparagraph (A) shall be treated as including a reference to each United States person who is an officer or director of such corporation.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Stock ownership requirements</inline>.—</heading><chapeau>A person meets the stock ownership requirements of this paragraph with respect to any corporation if such person owns 10 percent or more of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the total combined voting power of all classes of stock of such corporation entitled to vote, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the total value of the stock of such corporation.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6046">26 USC 6046 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section shall take effect on January 1, 1998.</content> </subsection> </section> </subtitle> <subtitle> <num value="F">Subtitle F—</num><heading>Determination of Foreign or Domestic Status of Partnerships</heading> <section> <num value="1151">SEC. 1151.</num> <heading>DETERMINATION OF FOREIGN OR DOMESTIC STATUS OF PARTNERSHIPS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Paragraph (4) of section 7701(a) is amended by inserting before the period “unless, in the case of a partnership, the Secretary provides otherwise by regulations”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s7701">26 USC 7701 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>Any regulations issued with respect to the amendment made by subsection (a) shall apply to partnerships created or organized after the date determined under section 7805(b) <page identifier="/us/stat/111/987">111 STAT. 987</page>of the Internal Revenue Code of 1986 (without regard to paragraph (2) thereof) with respect to such regulations.</content> </subsection> </section> </subtitle> <subtitle> <num value="G">Subtitle G—</num><heading>Other Simplification Provisions</heading> <section> <num value="1161">SEC. 1161.</num> <heading>TRANSITION RULE FOR CERTAIN TRUSTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Paragraph (3) of section 1907(a) of the Small Business Job Protection Act of 1996 is amended by adding at<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s770">26 USC 770 note</ref>.</p></sidenote> the end the following flush sentence: <quotedContent> <p class="indent0 fontsize10">“To the extent prescribed in regulations by the Secretary of the Treasury or his delegate, a trust which was in existence on August 20, 1996 (other than a trust treated as owned by the grantor under subpart E of part I of subchapter J of chapter 1 of the Internal Revenue Code of 1986), and which was treated as a United States person on the day before the date of the enactment of this Act may elect to continue to be treated as a United States person notwithstanding section 7701(a)(30)(E) of such Code.”.</p> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a)<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s7701">26 USC 7701 note</ref>.</p></sidenote> shall take effect as if included in the amendments made by section 1907(a) of the Small Business Job Protection Act of 1996.</content> </subsection> </section> <section> <num value="1162">SEC. 1162.</num> <heading>REPEAL OF STOCK AND SECURITIES SAFE HARBOR REQUIREMENT THAT PRINCIPAL OFFICE BE OUTSIDE THE UNITED STATES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>The last sentence of clause (ii) of section 864(b)(2)(A) (relating to stock or securities) is amended by striking or in the case of a corporation” and all that follows and inserting a period.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a)<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s864">26 USC 864 note</ref>.</p></sidenote> shall apply to taxable years beginning after December 31, 1997.</content> </subsection> </section> <section> <num value="1163">SEC. 1163.</num> <heading>MISCELLANEOUS CLARIFICATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Attribution of Deemed Paid Foreign Taxes to Prior Distributions</inline>.—</heading><content>Subparagraph (B) of section 902(c)(2) is amended by striking “<quotedText>deemed paid with respect to</quotedText>” and inserting “<quotedText>attributable to</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Financial Services Income Determined Without Regard to High-Taxed Income</inline>.—</heading><content>Subclause (II) of section 904(d)(2)(C)(i) is amended by striking “<quotedText>subclause (I)</quotedText>” and inserting “<quotedText>subclauses (I) and (III)</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s902">26 USC 902 note</ref>.</p></sidenote> shall take effect on the date of the enactment of this Act.</content> </subsection> </section> </subtitle> <subtitle> <num value="H">Subtitle H—</num><heading>Other Provisions</heading> <section> <num value="1171">SEC. 1171.</num> <heading>TREATMENT OF COMPUTER SOFTWARE AS FSC EXPORT PROPERTY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subparagraph (B) of section 927(a)(2) (relating to property excluded from eligibility as FSC export property) is amended by inserting “<quotedText>, and other than computer software (whether or not patented)</quotedText>” before “, for commercial or home use”.<page identifier="/us/stat/111/988">111 STAT. 988</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s927">26 USC 927 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall apply to gross receipts attributable to periods after December 31, 1997, in taxable years ending after such date.</content> </subsection> </section> <section> <num value="1172">SEC. 1172.</num> <heading>ADJUSTMENT OF DOLLAR LIMITATION ON SECTION 911 EXCLUSION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><chapeau>Paragraph (2) of section 911(b) is amended by—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>of $70,000</quotedText>” in subparagraph (A) and inserting “<quotedText>equal to the exclusion amount for the calendar year in which such taxable year begins</quotedText>”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Exclusion amount</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The exclusion amount for any calendar year is the exclusion amount determined in accordance with the following table (as adjusted by clause (ii)): <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <thead> <tr> <td style="text-align:left" leaders="yes"><b xmlns="http://schemas.gpo.gov/xml/uslm">“For calendar year—</b></td> <td style="text-align:right"><b xmlns="http://schemas.gpo.gov/xml/uslm">The exclusion amount is—</b></td> </tr> </thead> <tbody> <tr> <td style="text-align:left" leaders="yes">1998</td> <td style="text-align:right">$72,000</td> </tr> <tr> <td style="text-align:left" leaders="yes">1999</td> <td style="text-align:right">74,000</td> </tr> <tr> <td style="text-align:left" leaders="yes">2000</td> <td style="text-align:right">76,000</td> </tr> <tr> <td style="text-align:left" leaders="yes">2001</td> <td style="text-align:right">78,000</td> </tr> <tr> <td style="text-align:left" leaders="yes">2002 and thereafter</td> <td style="text-align:right">80,000</td> </tr> </tbody> </table> </content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Inflation adjustment</inline>.—</heading><chapeau>In the case of any taxable year beginning in a calendar year after 2007, the $80,000 amount in clause (i) shall be increased by an amount equal to the product of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>such dollar amount, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘2006’ for ‘1992’ in subparagraph (B) thereof. If any increase determined under the preceding sentence is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100.”.</content></subclause> </clause> </subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s911">26 USC 911 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section shall apply to taxable years beginning after December 31, 1997.</content> </subsection> </section> <section> <num value="1173">SEC. 1173.</num> <heading>UNITED STATES PROPERTY NOT TO INCLUDE CERTAIN ASSETS ACQUIRED BY DEALERS IN ORDINARY COURSE OF TRADE OR BUSINESS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 956(c)(2) is amended by striking “<quotedText>and</quotedText>” at the end of subparagraph (H), by striking the period at the end of subparagraph (I) and inserting a semicolon, and by adding at the end the following new subparagraphs: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="J">“(J)</num> <content>deposits of cash or securities made or received on commercial terms in the ordinary course of a United States or foreign person’s business as a dealer in securities or in commodities, but only to the extent such deposits are made or received as collateral or margin for (i) a securities loan, notional principal contract, options contract, forward contract, or futures contract, or (ii) any other financial transaction in which the Secretary determines that it is customary to post collateral or margin; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="K">“(K)</num> <content>an obligation of a United States person to the extent the principal amount of the obligation does not <page identifier="/us/stat/111/989">111 STAT. 989</page>exceed the fair market value of readily marketable securities sold or purchased pursuant to a sale and repurchase agreement or otherwise posted or received as collateral for the obligation in the ordinary course of its business by a United States or foreign person which is a dealer in securities or commodities.</content></subparagraph> <continuation class="indent0 fontsize10">For purposes of subparagraphs (J) and (K), the term ‘dealer in securities’ has the meaning given such term by section 475(c)(1), and the term ‘dealer in commodities’ has the meaning given such term by section 475(e), except that such term shall include a futures commission merchant.”.</continuation> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s956">26 USC 956 note</ref>.</p></sidenote> shall apply to taxable years of foreign corporations beginning after December 31, 1997, and to taxable years of United States shareholders with or within which such taxable years of foreign corporations end.</content></subsection> </section> <section> <num value="1174">SEC. 1174.</num> <heading>TREATMENT OF NONRESIDENT ALIENS ENGAGED IN INTERNATIONAL TRANSPORTATION SERVICES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Sourcing Rules</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 861(a)(3) is amended by adding at the end the following new flush sentence: <quotedContent> <p class="indent0 fontsize10">“In addition, except for purposes of sections 79 and 105 and subchapter D, compensation for labor or services performed in the United States shall not be deemed to be income from sources within the United States if the labor or services are performed by a nonresident alien individual in connection with the individual’s temporary presence in the United States as a regular member of the crew of a foreign vessel engaged in transportation between the United States and a foreign country or a possession of the United States.”.</p> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Transportation income.—Subparagraph (B) of section 863(c)(2) is amended by adding at the end the following flush sentence: <quotedContent> <p class="indent0 fontsize10">“In the case of transportation income derived from, or in connection with, a vessel, this subparagraph shall only apply if the taxpayer is a citizen or resident alien.”.</p> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Presence in United States</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Paragraph (7) of section 7701(b) is amended by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Crew members temporarily present</inline>.—</heading><content>An individual who is temporarily present in the United States on any day as a regular member of the crew of a foreign vessel engaged in transportation between the United States and a foreign country or a possession of the United States shall not be treated as present in the United States on such day unless such individual otherwise engages in any trade or business in the United States on such day.”.</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conforming amendment</inline>.—</heading><content>Subparagraph (A) of section 7701(b)(7) is amended by striking “<quotedText>or (C)</quotedText>” and inserting “<quotedText>, (C), or (D)</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s7701">26 USC 7701 note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendments made by this section shall apply to remuneration for services performed in taxable years beginning after December 31, 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Presence</inline>.—</heading><content>The amendment made by subsection (b) shall apply to taxable years beginning after December 31, 1997.<page identifier="/us/stat/111/990">111 STAT. 990</page></content></paragraph> </subsection> </section> <section> <num value="1175">SEC. 1175.</num> <heading>EXEMPTION FOR ACTIVE FINANCING INCOME.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Exemption From Foreign Personal Holding Company Income</inline>.—</heading><content>Section 954 is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Special Rule for Income Derived in the Active Conduct of Banking, Financing, or Similar Businesses</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of subsection (c)(1), foreign personal holding company income shall not include income which is—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>derived in the active conduct by a controlled foreign corporation of a banking, financing, or similar business, but only if the corporation is predominantly engaged in the active conduct of such business,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>received from a person other than a related person (within the meaning of subsection (d)(3)) and derived from the investments made by a qualifying insurance company of its reserves or of 80 percent of its unearned premiums (as both are determined in the manner prescribed under paragraph (4)), or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <chapeau>received from a person other than a related person (within the meaning of subsection (d)(3)) and derived from investments made by a qualifying insurance company of an amount of its assets equal to—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>in the case of contracts regulated in the country in which sold as property, casualty, or health insurance contracts, one-third of its premiums earned on such insurance contracts during the taxable year (as defined in section 832(b)(4)), and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>in the case of contracts regulated in the country in which sold as life insurance or annuity contracts, the greater of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>10 percent of the reserves described in subparagraph (B) for such contracts, or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>in the case of a qualifying insurance company which is a start-up company, $10,000,000.</content></subclause> </clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <chapeau>Principles for determining applicable income.—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>Banking and financing income—The determination as to whether income is described in paragraph (1)(A) shall be made—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>except as provided in clause (ii), in accordance with the applicable principles of section 904(d)(2)(C)(ii), except that such income shall include income from all leases entered into in the ordinary course of the active conduct of a banking, financing, or similar business, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>in the case of a corporation described in paragraph (3)(B), in accordance with the applicable principles of section 1296(b) (as in effect on the day before the enactment of the Taxpayer Relief Act of 1997) for determining what is not passive income.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Insurance income</inline>.—</heading><chapeau>Under rules prescribed by the Secretary, for purposes of paragraphs (1) (B) and (C)—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>in the case of contracts which are separate account-type contracts (including variable contracts not meeting the requirements of section 817), only income specifically allocable to such contracts shall be taken into account, and<page identifier="/us/stat/111/991">111 STAT. 991</page></content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>in the case of other contracts, income not allocable under clause (i) shall be allocated ratably among such contracts.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Look-thru rules</inline>.—</heading><content>The Secretary shall prescribe<sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote> regulations consistent with the principles of section 904(d)(3) which provide that dividends, interest, income equivalent to interest, rents, or royalties received or accrued from a related person (within the meaning of subsection (d)(3)) shall be subject to look-thru treatment for purposes of this subsection.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Predominantly engaged</inline>.—</heading><chapeau>For purposes of paragraph (1)(A), a corporation shall be deemed predominantly engaged in the active conduct of a banking, financing, or similar business only if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>more than 70 percent of its gross income is derived from such business from transactions with persons which are not related persons (as defined in subsection (d)(3)) and which are located within the country under the laws of which the controlled foreign corporation is created or organized, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>the corporation is—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>engaged in the active conduct of a banking or securities business (within the meaning of section 1296(b), as in effect before the enactment of the Taxpayer Relief Act of 1997), or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>a qualified bank affiliate or a qualified securities affiliate (within the meaning of the proposed regulations under such section 1296(b)).</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Methods for determining unearned premiums and reserves</inline>.—</heading><chapeau>For purposes of paragraph (1)(B)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Property and casualty contracts</inline>.—</heading><content>The unearned premiums and reserves of a qualifying insurance company with respect to property, casualty, or health insurance contracts shall be determined using the same methods and interest rates which would be used if such company were subject to tax under subchapter L.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Life insurance and annuity contracts</inline>.—</heading><content>The reserves of a qualifying insurance company with respect to life insurance or annuity contracts shall be determined under the method described in paragraph (5) which such company elects to apply for purposes of this paragraph. Such election shall he made at such time and in such manner as the Secretary may prescribe and, once made, shall be irrevocable without the consent of the Secretary.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Limitation on reserves</inline>.—</heading><content>In no event shall the reserve determined under this paragraph for any contract as of any time exceed the amount which would be taken into account with respect to such contract as of such time in determining foreign annual statement reserves (less any catastrophe or deficiency reserves).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Methods</inline>.—</heading><chapeau>The methods described in this paragraph are as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">U.S. method</inline>.—</heading><content>The method which would apply if the qualifying insurance company were subject to tax under subchapter L, except that the interest rate used shall be an interest rate determined for the foreign country in which such company is created or organized and which <page identifier="/us/stat/111/992">111 STAT. 992</page>is calculated in the same manner as the Federal midterm rate under section 1274(d).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Foreign method</inline>.—</heading><content>A preliminary term method, except that the interest rate used shall be the interest rate determined for the foreign country in which such company is created or organized and which is calculated in the same manner as the Federal mid-term rate under section 1274(d). If a qualifying insurance company uses such a preliminary term method with respect to contracts insuring risks located in such foreign country, such method shall apply if such company elects the method under this clause.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Cash surrender value</inline>.—</heading><content>A method under which reserves are equal to the net surrender value (as defined in section 807(e)(1)(A)) of the contract.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this subsection—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Terms relating to insurance companies</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Qualifying insurance company</inline>.—</heading><chapeau>The term ‘qualifying insurance company’ means any entity which—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>is subject to regulation as an insurance company under the laws of its country of incorporation,</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>realizes at least 50 percent of its net written premiums from the insurance or reinsurance of risks located within the country in which such entity is created or organized, and</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>is engaged in the active conduct of an insurance business and would be subject to tax under subchapter L if it were a domestic corporation.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Start-up company</inline>.—</heading><content>A qualifying insurance company shall be treated as a start-up company if such company (and any predecessor) has not been engaged in the active conduct of an insurance business for more than 5 years as of the beginning of the taxable year of such company.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Located</inline>.—</heading><chapeau>For purposes of paragraph (3)(A)—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>A person shall be treated as located—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>except as provided in subclause (II), within the country in which it maintains an office or other fixed place of business through which it engages in a trade or business and by which the transaction is effected, or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>in the case of a natural person, within the country in which such person is physically located when such person enters into a transaction,</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Special rule for qualified business units</inline>.—</heading><content>Gross income derived by a corporation’s qualified business unit (within the meaning of section 989(a)) from transactions with persons which are not related persons (as defined in subsection (d)(3)) and which are located in the country in which the qualified business unit both maintains its principal office and conducts substantial business activity shall be treated as derived from transactions with persons which are <page identifier="/us/stat/111/993">111 STAT. 993</page>not related persons (as defined in subsection (d)(3)) and which are located within the country under the laws of which the controlled foreign corporation is created or organized.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Anti-abuse rules</inline>.—</heading><content>For purposes of applying this subsection, there shall be disregarded any item of income, gain, loss, or deduction with respect to any transaction or series of transactions one of the principal purposes of which is qualifying income or gain for the exclusion under this section, including any change in the method of computing reserves or any other transaction or series of transactions a principal purpose of which is the acceleration or deferral of any item in order to claim the benefits of such exclusion through the application of this subsection.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <heading><inline class="smallCaps">Coordination with section 953</inline>.—</heading><content>This subsection shall not apply to investment income allocable to contracts that insure related party risks or risks located in a foreign country other than the country in which the qualifying insurance company is created or organized.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">“(9)</num> <heading><inline class="smallCaps">Application</inline>.—</heading><content>This subsection shall apply to the first full taxable year of a foreign corporation beginning after December 31, 1997, and before January 1, 1999, and to taxable years of United States shareholders with or within which such taxable year of such foreign corporation ends.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Exemption From Foreign Base Company Services Income</inline>.—</heading><content>Paragraph (2) of section 954(e) is amended by striking “<quotedText>or</quotedText>” at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting “<quotedText>, or</quotedText>”, and by adding at the end the following: <quotedContent> <num value="C">“(C)</num> <content>in the case of taxable years described in subsection (h)(8), the active conduct by a controlled foreign corporation of a banking, financing, insurance, or similar business, but only if the corporation is predominantly engaged in the active conduct of such business (within the meaning of subsection (h)(3)) or is a qualifying insurance company.”.</content> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s954">26 USC 954 note</ref>.</p></sidenote> shall apply to the first full taxable year of a foreign corporation beginning after December 31, 1997, and before January 1, 1999, and to taxable years of United States shareholders with or within which such taxable year of such foreign corporation ends.</content> </subsection> </section> </subtitle> <num value="XII">TITLE XII—</num><heading>SIMPLIFICATION PROVISIONS RELATING TO INDIVIDUALS AND BUSINESSES</heading> <subtitle> <num value="A">Subtitle A—</num><heading>Provisions Relating to Individuals</heading> <section> <num value="1201">SEC. 1201.</num> <heading>BASIC STANDARD DEDUCTION AND MINIMUM TAX EXEMPTION AMOUNT FOR CERTAIN DEPENDENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Basic Standard Deduction</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Paragraph (5) of section 63(c) (relating to limitation on basic standard deduction in the case of certain dependents) is amended by striking “<quotedText>shall not exceed</quotedText>” and <page identifier="/us/stat/111/994">111 STAT. 994</page>all that follows and inserting “shall not exceed the greater of— <quotedContent> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>$500, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the sum of $250 and such individual’s earned income.”.</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conforming amendment</inline>.—</heading><chapeau>Paragraph (4) of section 63(c) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>(5)(A)</quotedText>” in the material preceding subparagraph (A) and inserting “<quotedText>(5)</quotedText>”, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking “<quotedText>by substituting</quotedText>” and all that follows in subparagraph (B) and inserting “by substituting for ‘calendar year 1992’ in subparagraph (B) thereof— <quotedContent> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>‘calendar year 1987’ in the case of the dollar amounts contained in paragraph (2) or (5)(A) or subsection (f), and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>‘calendar year 1997’ in the case of the dollar amount contained in paragraph (5)(B).”.</content></clause> </quotedContent> </content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Minimum Tax Exemption Amount</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subsection (j) of section 59 is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="j">“(j)</num> <heading><inline class="smallCaps">Treatment of Unearned Income of Minor Children</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of a child to whom section 1(g) applies, the exemption amount for purposes of section 55 shall not exceed the sum of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>such child’s earned income (as defined in section 911(d)(2)) for the taxable year, plus</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>$5,000.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Inflation adjustment</inline>.—</heading><chapeau>In the case of any taxable year beginning in a calendar year after 1998, the dollar amount in paragraph (1)(B) shall be increased by an amount equal to the product of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>such dollar amount, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘1997’ for ‘1992’ in subparagraph (B) thereof.</content></subparagraph> <continuation class="indent0 fontsize10">If any increase determined under the preceding sentence is not a multiple of $50, such increase shall be rounded to the nearest multiple of $50.”.</continuation> </paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conforming amendment</inline>.—</heading><content>Clause (iv) of section 6103(e)(1)(A) is amended by striking “<quotedText>or 59(j)</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s59">26 USC 59 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to taxable years beginning after December 31, 1997.</content> </subsection> </section> <section> <num value="1202">SEC. 1202.</num> <heading>INCREASE IN AMOUNT OF TAX EXEMPT FROM ESTIMATED TAX REQUIREMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Paragraph (1) of section 6654(e) (relating to exception where tax is small amount) is amended by striking “<quotedText>$500</quotedText>” and inserting “<quotedText>$1,000</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6654">26 USC 6654 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to taxable years beginning after December 31, 1997.</content> </subsection> </section> <section> <num value="1203">SEC. 1203.</num> <heading>TREATMENT OF CERTAIN REIMBURSED EXPENSES OF RURAL MAIL CARRIERS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 162 (relating to trade or business expenses) is amended by redesignating subsection (o) as subsection (p) and by inserting after subsection (n) the following new subsection:<page identifier="/us/stat/111/995">111 STAT. 995</page> <quotedContent> <subsection class="indent0 fontsize10"> <num value="o">“(o)</num> <heading><inline class="smallCaps">Treatment of Certain Reimbursed Expenses of Rural Mail Carriers</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">General rule</inline>.—</heading><chapeau>In the case of any employee of the United States Postal Service who performs services involving the collection and delivery of mail on a rural route and who receives qualified reimbursements for the expenses incurred by such employee for the use of a vehicle in performing such services—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the amount allowable as a deduction under this chapter for the use of a vehicle in performing such services shall be equal to the amount of such qualified reimbursements; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>such qualified reimbursements shall be treated as paid under a reimbursement or other expense allowance arrangement for purposes of section 62(a)(2)(A) (and section 62(c) shall not apply to such qualified reimbursements).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Definition of qualified reimbursements</inline>.—</heading><content>For purposes of this subsection, the term ‘qualified reimbursements’ means the amounts paid by the United States Postal Service to employees as an equipment maintenance allowance under the 1991 collective bargaining agreement between the United States Postal Service and the National Rural Letter Carriers’ Association. Amounts paid as an equipment maintenance allowance by such Postal Service under later collective bargaining agreements that supersede the 1991 agreement shall be considered qualified reimbursements if such amounts do not exceed the amounts that would have been paid under the 1991 agreement, adjusted for changes in the Consumer Price Index (as defined in section 1(f)(5)) since 1991.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Technical Amendment</inline>.—</heading><content>Section 6008 of the Technical and Miscellaneous Revenue Act of 1988 is hereby repealed.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s162">26 USC 162 note</ref>.</p></sidenote></content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s162">26 USC 162 note</ref>.</p></sidenote> shall apply to taxable years beginning after December 31, 1997.</content> </subsection> </section> <section> <num value="1204">SEC. 1204.</num> <heading>TREATMENT OF TRAVELING EXPENSES OF CERTAIN FEDERAL EMPLOYEES ENGAGED IN CRIMINAL INVESTIGATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (a) of section 162 is amended by adding at the end the following new sentence: “The preceding sentence shall not apply to any Federal employee during any period for which such employee is certified by the Attorney General (or the designee thereof) as traveling on behalf of the United States in temporary duty status to investigate, or provide support services for the investigation of, a Federal crime.”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a)<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s162">26 USC 162 note</ref>.</p></sidenote> shall apply to amounts paid or incurred with respect to taxable years ending after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1205">SEC. 1205.</num> <heading>PAYMENT OF TAX BY COMMERCIALLY ACCEPTABLE MEANS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Section 6311 is amended to read as follows: <quotedContent> <section> <num value="6311">“SEC. 6311.</num> <heading>PAYMENT OF TAX BY COMMERCIALLY ACCEPTABLE MEANS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Authority To Receive</inline>.—</heading><content>It shall be lawful for the Secretary to receive for internal revenue taxes (or in payment for internal revenue stamps) any commercially acceptable means that the Secretary deems appropriate to the extent and under the conditions provided in regulations prescribed by the Secretary.<page identifier="/us/stat/111/996">111 STAT. 996</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Ultimate Liability</inline>.—</heading><content>If a check, money order, or other method of payment, including payment by credit card, debit card, or charge card so received is not duly paid, or is paid and subsequently charged back to the Secretary, the person by whom such check, or money order, or other method of payment has been tendered shall remain liable for the payment of the tax or for the stamps, and for all legal penalties and additions, to the same extent as if such check, money order, or other method of payment had not been tendered.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Liability of Banks and Others</inline>.—</heading><chapeau>If any certified, treasurer’s, or cashier’s check (or other guaranteed draft), or any money order, or any other means of payment that has been guaranteed by a financial institution (such as a credit card, debit card, or charge card transaction which has been guaranteed expressly by a financial institution) so received is not duly paid, the United States shall, in addition to its right to exact payment from the party originally indebted therefor, have a lien for—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the amount of such check (or draft) upon all assets of the financial institution on which drawn,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the amount of such money order upon all the assets of the issuer thereof, or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>the guaranteed amount of any other transaction upon all the assets of the institution making such guarantee,</content></paragraph> <continuation class="indent0 fontsize10">and such amount shall be paid out of such assets in preference to any other claims whatsoever against such financial institution, issuer, or guaranteeing institution, except the necessary costs and expenses of administration and the reimbursement of the United States for the amount expended in the redemption of the circulating notes of such financial institution.</continuation> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Payment by Other Means</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Authority to prescribe regulations</inline>.—</heading><chapeau>The Secretary shall prescribe such regulations as the Secretary deems necessary to receive payment by commercially acceptable means, including regulations that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>specify which methods of payment by commercially acceptable means will be acceptable,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>specify when payment by such means will be considered received,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>identify types of nontax matters related to payment by such means that are to be resolved by persons ultimately liable for payment and financial intermediaries, without the involvement of the Secretary, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>ensure that tax matters will be resolved by the Secretary, without the involvement of financial intermediaries.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Authority to enter into contracts</inline>.—</heading><content>Notwithstanding section 3718(f) of title 31, United States Code, the Secretary is authorized to enter into contracts to obtain services related to receiving payment by other means where cost beneficial to the Government. The Secretary may not pay any fee or provide any other consideration under such contracts.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Special provisions for use of credit cards</inline>.—</heading><chapeau>If use of credit cards is accepted as a method of payment of taxes pursuant to subsection (a)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>a payment of internal revenue taxes (or a payment for internal revenue stamps) by a person by use of a credit card shall not be subject to section 161 of the Truth in <page identifier="/us/stat/111/997">111 STAT. 997</page>Lending Act (15 U.S.C. 1666), or to any similar provisions of State law, if the error alleged by the person is an error relating to the underlying tax liability, rather than an error relating to the credit card account such as a computational error or numerical transposition in the credit card transaction or an issue as to whether the person authorized payment by use of the credit card,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>a payment of internal revenue taxes (or a payment for internal revenue stamps) shall not be subject to section 170 of the Truth in Lending Act (15 U.S.C. 1666i), or to any similar provisions of State law,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>a payment of internal revenue taxes (or a payment for internal revenue stamps) by a person by use of a debit card shall not be subject to section 908 of the Electronic Fund Transfer Act (15 U.S.C. 16930, or to any similar provisions of State law, if the error alleged by the person is an error relating to the underlying tax liability, rather than an error relating to the debit card account such as a computational error or numerical transposition in the debit card transaction or an issue as to whether the person authorized payment by use of the debit card,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>the term ‘creditor’ under section 103(f) of the Truth in Lending Act (15 U.S.C. 1602(f)) shall not include the Secretary with respect to credit card transactions in payment of internal revenue taxes (or payment for internal revenue stamps), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>notwithstanding any other provision of law to the contrary, in the case of payment made by credit card or debit card transaction of an amount owed to a person as the result of the correction of an error under section 161 of the Truth in Lending Act (15 U.S.C. 1666) or section 908 of the Electronic Fund Transfer Act (15 U.S.C. 1693f), the Secretary is authorized to provide such amount to such person as a credit to that person’s credit card or debit card account through the applicable credit card or debit card system.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Confidentiality of Information</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as otherwise authorized by this subsection, no person may use or disclose any information relating to credit or debit card transactions obtained pursuant to section 6103(k)(8) other than for purposes directly related to the processing of such transactions, or the billing or collection of amounts charged or debited pursuant thereto.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Exceptions</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Debit or credit card issuers or others acting on behalf of such issuers may also use and disclose such information for purposes directly related to servicing an issuer’s accounts.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>Debit or credit card issuers or others directly involved in the processing of credit or debit card transactions or the billing or collection of amounts charged or debited thereto may also use and disclose such information for purposes directly related to—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>statistical risk and profitability assessment;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>transferring receivables, accounts, or interest therein;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>auditing the account information;<page identifier="/us/stat/111/998">111 STAT. 998</page></content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>complying with Federal, State, or local law; and</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>properly authorized civil, criminal, or regulatory investigation by Federal, State, or local authorities.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Procedures</inline>.—</heading><content>Use and disclosure of information under this paragraph shall be made only to the extent authorized by written procedures promulgated by the Secretary.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Cross reference</inline>.—</heading> <content class="indent0 fontsize10"><br /><b>“For provision providing for civil damages for violation of paragraph (1), see section 7431.”.</b></content> </paragraph> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections for subchapter B of chapter 64 is amended by striking the item relating to section 6311 and inserting the following: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 6311.</designator> <label>Payment of tax by commercially acceptable means.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Amendments to Sections 6103 and 7431 With Respect to Disclosure Authorization</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Subsection (k) of section 6103 (relating to confidentiality and disclosure of returns and return information) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <heading><inline class="smallCaps">Disclosure of information to administer section 6311</inline>.—</heading><content>The Secretary may disclose returns or return information to financial institutions and others to the extent the Secretary deems necessary for the administration of section 6311. Disclosures of information for purposes other than to accept payments by checks or money orders shall be made only to the extent authorized by written procedures promulgated by the Secretary.”.</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Section 7431 (relating to civil damages for unauthorized disclosure of returns and return information) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Special Rule for Information Obtained Under Section 6103(k)(8)</inline>.—</heading><content>For purposes of this section, any reference to section 6103 shall be treated as including a reference to section 6311(e).”.</content> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Section 6103(p)(3)(A) is amended by striking “<quotedText>or (6)</quotedText>” and inserting “<quotedText>(6), or (8)</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6103">26 USC 6103 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall take effect on the day 9 months after the date of the enactment of this Act.</content> </subsection> </section> </subtitle> <subtitle> <num value="B">Subtitle B—</num><heading>Provisions Relating to Businesses Generally</heading> <section> <num value="1211">SEC. 1211.</num> <heading>MODIFICATIONS TO LOOK-BACK METHOD FOR LONG-TERM CONTRACTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Look-Back Method Not To Apply in Certain Cases</inline>.—</heading><content>Subsection (b) of section 460 (relating to percentage of completion method) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Election to have look-back method not apply in de minimis cases</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Amounts taken into account after completion of contract</inline>.—</heading><chapeau>Paragraph (1)(B) shall not apply with respect to any taxable year (beginning after the taxable year in which the contract is completed) if—<page identifier="/us/stat/111/999">111 STAT. 999</page></chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the cumulative taxable income (or loss) under the contract as of the close of such taxable year, is within</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>10 percent of the cumulative look-back taxable income (or loss) under the contract as of the close of the most recent taxable year to which paragraph (1)(B) applied (or would have applied but for subparagraph (B)).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">De minimis discrepancies</inline>.—</heading><chapeau>Paragraph (1)(B) shall not apply in any case to which it would otherwise apply if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the cumulative taxable income (or loss) under the contract as of the close of each prior contract year, is within</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>10 percent of the cumulative look-back income (or loss) under the contract as of the close of such prior contract year.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this paragraph—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Contract year</inline>.—</heading><content>The term ‘contract year’ means any taxable year for which income is taken into account under the contract.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Look-back income or loss</inline>.—</heading><content>The look-back income (or loss) is the amount which would be the taxable income (or loss) under the contract if the allocation method set forth in paragraph (2)(A) were used in determining taxable income.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Discounting not applicable</inline>.—</heading><content>The amounts taken into account after the completion of the contract shall be determined without regard to any discounting under the 2nd sentence of paragraph (2).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Contracts to which paragraph applies</inline>.—</heading><content>This paragraph shall only apply if the taxpayer makes an election under this subparagraph. Unless revoked with the consent of the Secretary, such an election shall apply to all long-term contracts completed during the taxable year for which election is made or during any subsequent taxable year.”.</content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Modification of Interest Rate</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subparagraph (C) of section 460(b)(2) is amended by striking “<quotedText>the overpayment rate established by section 6621</quotedText>” and inserting “<quotedText>the adjusted overpayment rate (as defined in paragraph (7))</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Adjusted overpayment rate</inline>.—</heading><content>Subsection (b) of section 460 is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Adjusted overpayment rate</inline>s.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The adjusted overpayment rate for any interest accrual period is the overpayment rate in effect under section 6621 for the calendar quarter in which such interest accrual period begins.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Interest accrual period</inline>.—</heading><chapeau>For purposes of subparagraph (A), the term ‘interest accrual period’ means the period—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>beginning on the day after the return due date for any taxable year of the taxpayer, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>ending on the return due date for the following taxable year.<page identifier="/us/stat/111/1000">111 STAT. 1000</page></content></clause> <continuation class="indent0 fontsize10">For purposes of the preceding sentence, the term ‘return due date’ means the date prescribed for filing the return of the tax imposed by this chapter (determined without regard to extensions).”.</continuation> </subparagraph> </paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s460">26 USC 460 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in paragraph (2), the amendments made by this section shall apply to contracts completed in taxable years ending after the date of the enactment of this Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Subsection (b)</inline>.—</heading><content>The amendments made by subsection (b) shall apply for purposes of section 167(g) of the Internal Revenue Code of 1986 to property placed in service after September 13, 1995.</content></paragraph> </subsection> </section> <section> <num value="1212">SEC. 1212.</num> <heading>MINIMUM TAX TREATMENT OF CERTAIN PROPERTY AND CASUALTY INSURANCE COMPANIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Clause (i) of section 56(g)(4)(B) (relating to inclusion of items included for purposes of computing earnings and profits) is amended by adding at the end the following new sentence: “In the case of any insurance company taxable under section 831(b), this clause shall not apply to any amount not described in section 834(b).”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s56">26 USC 56 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1997.</content> </subsection> </section> <section> <num value="1213">SEC. 1213.</num> <heading>QUALIFIED LESSEE CONSTRUCTION ALLOWANCES FOR SHORT-TERM LEASES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Part III of subchapter B of chapter 1 is amended by inserting after section 109 the following new section: <quotedContent> <section> <num value="110">“SEC. 110.</num> <heading>QUALIFIED LESSEE CONSTRUCTION ALLOWANCES FOR SHORT-TERM LEASES.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Gross income of a lessee does not include any amount received in cash (or treated as a rent reduction) by a lessee from a lessor—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>under a short-term lease of retail space, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>for the purpose of such lessee’s constructing or improving qualified long-term real property for use in such lessee’s trade or business at such retail space,</content></paragraph> <continuation class="indent0 fontsize10">but only to the extent that such amount does not exceed the amount expended by the lessee for such construction or improvement.</continuation> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Consistent Treatment by Lessor</inline>.—</heading><content>Qualified long-term real property constructed or improved in connection with any amount excluded from a lessee’s income by reason of subsection (a) shall be treated as nonresidential real property of the lessor (including for purposes of section 168(i)(8)(B)).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Qualified long-term real property</inline>.—</heading><content>The term ‘qualified long-term real property’ means nonresidential real property which is part of, or otherwise present at, the retail space referred to in subsection (a) and which reverts to the lessor at the termination of the lease.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Short-term lease</inline>.—</heading><content>The term ‘short-term lease’ means a lease (or other agreement for occupancy or use) of retail space for 15 years or less (as determined under the rules of section 168(i)(3)).<page identifier="/us/stat/111/1001">111 STAT. 1001</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Retail space</inline>.—</heading><content>The term ‘retail space’ means real property leased, occupied, or otherwise used by a lessee in its trade or business of selling tangible personal property or services to the general public.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Information Required To Be Furnished to Secretary</inline>.—</heading><chapeau><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote>Under regulations, the lessee and lessor described in subsection (a) shall, at such times and in such manner as may be provided in such regulations, furnish to the Secretary—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>information concerning the amounts received (or treated as a rent reduction) and expended as described in subsection (a), and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>any other information which the Secretary deems necessary to carry out the provisions of this section.”.</content></paragraph> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Treatment as Information Return</inline>.—</heading><content>Subparagraph (A) of section 6724(d)(1)(A) is amended by striking “<quotedText>or</quotedText>” at the end of clause (vii), by adding “<quotedText>or</quotedText>” at the end of clause (viii), and by adding at the end the following new clause: <quotedContent> <clause class="indent3 fontsize10"><num value="ix">“(ix)</num> <content>section 110(d) (relating to qualified lessee construction allowances for short-term leases),”.</content></clause> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c)</num> <heading><inline class="smallCaps">Cross Reference</inline>.—</heading><content>Paragraph (8) of section 168(i) (relating to treatment of leasehold improvements) is amended by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Cross reference</inline>.—</heading> <content class="indent0 fontsize10"><b>“For treatment of qualified long-term real property constructed or improved in connection with cash or rent reduction from lessor to lessee, see section 110(b).”.</b></content> </subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections for part III of subchapter B of chapter 1 is amended by inserting after the item relating to section 109 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 110.</designator> <label>Qualified lessee construction allowances for short-term leases ”.</label></referenceItem> </toc> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s110">26 USC 110 note</ref>.</p></sidenote> shall apply to leases entered into after the date of the enactment of this Act.</content> </subsection> </section> </subtitle> <subtitle> <num value="C">Subtitle C—</num><heading>Simplification Relating to Electing Large Partnerships</heading> <part> <num value="I">PART I—</num><heading>GENERAL PROVISIONS</heading> <section> <num value="1221">SEC. 1221.</num> <heading>SIMPLIFIED FLOW-THROUGH FOR ELECTING LARGE PARTNERSHIPS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Subchapter K (relating to partners and partnerships) is amended by adding at the end the following new part: <quotedContent> <part> <num value="IV">“PART IV—</num><heading>SPECIAL RULES FOR ELECTING LARGE PARTNERSHIPS</heading> <toc> <referenceItem role="section"><designator>“Sec. 771.</designator> <label>Application of subchapter to electing large partnerships.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 772.</designator> <label>Simplified flow-through.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 773.</designator> <label>Computations at partnership level.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 774.</designator> <label>Other modifications.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 775.</designator> <label>Electing large partnership defined.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 776.</designator> <label>Special rules for partnerships holding oil and gas properties.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 777.</designator> <label>Regulations.<page identifier="/us/stat/111/1002">111 STAT. 1002</page></label></referenceItem> </toc> <section> <num value="771">“SEC. 771.</num> <heading>APPLICATION OF SUBCHAPTER TO ELECTING LARGE PARTNERSHIPS.</heading> <content>“The preceding provisions of this subchapter to the extent inconsistent with the provisions of this part shall not apply to an electing large partnership and its partners.</content> </section> <section> <num value="772">“SEC. 772.</num> <heading>SIMPLIFIED FLOW-THROUGH.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><chapeau>In determining the income tax of a partner of an electing large partnership, such partner shall take into account separately such partner’s distributive share of the partnership’s—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>taxable income or loss from passive loss limitation activities,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>taxable income or loss from other activities,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <chapeau>net capital gain (or net capital loss)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>to the extent allocable to passive loss limitation activities, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>to the extent allocable to other activities,</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>tax-exempt interest,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <chapeau>applicable net AMT adjustment separately computed for—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>passive loss limitation activities, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>other activities.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>general credits,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <content>low-income housing credit determined under section 42,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <content>rehabilitation credit determined under section 47,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">“(9)</num> <content>foreign income taxes,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">“(10)</num> <content>the credit allowable under section 29, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="11">“(11)</num> <content>other items to the extent that the Secretary determines that the separate treatment of such items is appropriate.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Separate Computations</inline>.—</heading><content>In determining the amounts required under subsection (a) to be separately taken into account by any partner, this section and section 773 shall be applied separately with respect to such partner by taking into account such partner’s distributive share of the items of income, gain, loss, deduction, or credit of the partnership.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> <heading><inline class="smallCaps">Treatment at Partner Level</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in this subsection, rules similar to the rules of section 702(b) shall apply to any partner’s distributive share of the amounts referred to in subsection (a).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Income or loss from passive loss limitation activities</inline>.—</heading><content>For purposes of this chapter, any partner’s distributive share of any income or loss described in subsection (a)(1) shall be treated as an item of income or loss (as the case may be) from the conduct of a trade or business which is a single passive activity (as defined in section 469). A similar rule shall apply to a partner’s distributive share of amounts referred to in paragraphs (3)(A) and (5)(A) of subsection (a).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <chapeau>Income or loss from other activities.—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>For purposes of this chapter, any partner’s distributive share of any income or loss described in subsection (a)(2) shall be treated as an item of income or expense (as the case may be) with respect to property held for investment.<page identifier="/us/stat/111/1003">111 STAT. 1003</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Deductions for loss not subject to section 67</inline>.—</heading><content>The deduction under section 212 for any loss described in subparagraph (A) shall not be treated as a miscellaneous itemized deduction for purposes of section 67.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Treatment of net capital gain or loss</inline>.—</heading><content>For purposes of this chapter, any partner’s distributive share of any gain or loss described in subsection (a)(3) shall be treated as a long-term capital gain or loss, as the case may be.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Minimum tax treatment</inline>.—</heading><content>In determining the alternative minimum taxable income of any partner, such partner’s distributive share of any applicable net AMT adjustment shall be taken into account in lieu of making the separate adjustments provided in sections 56, 57, and 58 with respect to the items of the partnership. Except as provided in regulations, the applicable net AMT adjustment shall be treated, for purposes of section 53, as an adjustment or item of tax preference not specified in section 53(d)(1)(B)(ii).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">General credits</inline>.—</heading><content>A partner’s distributive share of the amount referred to in paragraph (6) of subsection (a) shall be taken into account as a current year business credit.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Operating Rules</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Passive loss limitation activity</inline>.—</heading><chapeau>The term ‘passive loss limitation activity’ means—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>any activity which involves the conduct of a trade or business, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>any rental activity.</content></subparagraph> <continuation class="indent0 fontsize10">For purposes of the preceding sentence, the term ‘trade or business’ includes any activity treated as a trade or business under paragraph (5) or (6) of section 469(c).</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Tax-exempt interest</inline>.—</heading><content>The term ‘tax-exempt interest’ means interest excludable from gross income under section 103.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Applicable net amt adjustment</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The applicable net AMT adjustment is—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>with respect to taxpayers other than corporations, the net adjustment determined by using the adjustments applicable to individuals, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>with respect to corporations, the net adjustment determined by using the adjustments applicable to corporations.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Net adjustment</inline>.—</heading><content>The term ‘net adjustment’ means the net adjustment in the items attributable to passive loss activities or other activities (as the case may be) which would result if such items were determined with the adjustments of sections 56, 57, and 58.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Treatment of certain separately stated items</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Exclusion for certain purposes</inline>.—</heading><content>In determining the amounts referred to in paragraphs (1) and (2) of subsection (a), any net capital gain or net capital loss (as the case may be), and any item referred to in subsection (a)(11), shall be excluded.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Allocation rules</inline>.—</heading><chapeau>The net capital gain shall be treated—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>as allocable to passive loss limitation activities to the extent the net capital gain does not exceed the net capital gain determined by only taking into <page identifier="/us/stat/111/1004">111 STAT. 1004</page>account gains and losses from sales and exchanges of property used in connection with such activities, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>as allocable to other activities to the extent such gain exceeds the amount allocated under clause (i).</content></clause> <continuation class="indent0 fontsize10"><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote>A similar rule shall apply for purposes of allocating any net capital loss.</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Net capital loss</inline>.—</heading><content>The term ‘net capital loss’ means the excess of the losses from sales or exchanges of capital assets over the gains from sales or exchange of capital assets.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">General credits</inline>.—</heading><content>The term ‘general credits’ means any credit other than the low-income housing credit, the rehabilitation credit, the foreign tax credit, and the credit allowable under section 29.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Foreign income taxes</inline>.—</heading><content>The term ‘foreign income taxes’ means taxes described in section 901 which are paid or accrued to foreign countries and to possessions of the United States.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Special Rule for Unrelated Business Tax</inline>.—</heading><content>In the case of a partner which is an organization subject to tax under section 511, such partner’s distributive share of any items shall be taken into account separately to the extent necessary to comply with the provisions of section 512(c)(1).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Special Rules for Applying Passive Loss Limitations</inline>.—</heading><chapeau>If any person holds an interest in an electing large partnership other than as a limited partner—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>paragraph (2) of subsection (c) shall not apply to such partner, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>such partner’s distributive share of the partnership items allocable to passive loss limitation activities shall be taken into account separately to the extent necessary to comply with the provisions of section 469.</content></paragraph> <continuation class="indent0 fontsize10">The preceding sentence shall not apply to any items allocable to an interest held as a limited partner.</continuation> </subsection> </section> <section> <num value="773">“SEC. 773.</num> <heading>COMPUTATIONS AT PARTNERSHIP LEVEL.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Taxable income</inline>.—</heading><chapeau>The taxable income of an electing large partnership shall be computed in the same manner as in the case of an individual except that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the items described in section 772(a) shall be separately stated, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> <content>the modifications of subsection (b) shall apply.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Elections</inline>.—</heading><content>All elections affecting the computation of the taxable income of an electing large partnership or the computation of any credit of an electing large partnership shall be made by the partnership; except that the election under section 901, and any election under section 108, shall be made by each partner separately.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Limitations, etc</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in subparagraph (B), all limitations and other provisions affecting the computation of the taxable income of an electing large partnership or the computation of any credit of an electing large <page identifier="/us/stat/111/1005">111 STAT. 1005</page>partnership shall be applied at the partnership level (and not at the partner level).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>Certain limitations applied at partner level.—The following provisions shall be applied at the partner level (and not at the partnership level):</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>Section 68 (relating to overall limitation on itemized deductions).</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>Sections 49 and 465 (relating to at risk limitations).</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>Section 469 (relating to limitation on passive activity losses and credits).</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>Any other provision specified in regulations.</content></clause> </subparagraph> </paragraph> <subparagraph class="indent2 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Coordination with other provisions</inline>.—</heading><content>Paragraphs<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> (2) and (3) shall apply notwithstanding any other provision of this chapter other than this part.</content></subparagraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Modifications to Determination of Taxable Income</inline>.—</heading><chapeau>In determining the taxable income of an electing large partnership—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Certain deductions not allowed</inline>.—</heading><chapeau>The following deductions shall not be allowed:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>The deduction for personal exemptions provided in section 151.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>The net operating loss deduction provided in section 172.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>The additional itemized deductions for individuals provided in part VII of subchapter B (other than section 212 thereof).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Charitable deductions</inline>.—</heading><content>In determining the amount allowable under section 170, the limitation of section 170(b)(2) shall apply.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Coordination with section 67</inline>.—</heading><content>In lieu of applying section 67, 70 percent of the amount of the miscellaneous itemized deductions shall be disallowed.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Special Rules for Income From Discharge of Indebtedness</inline>.—</heading><chapeau>If an electing large partnership has income from the discharge of any indebtedness—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>such income shall be excluded in determining the amounts referred to in section 772(a), and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <chapeau>in determining the income tax of any partner of such partnership—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>such income shall be treated as an item required to be separately taken into account under section 772(a), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the provisions of section 108 shall be applied without regard to this part.</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="774">“SEC. 774.</num> <heading>OTHER MODIFICATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Treatment of Certain Optional Adjustments, Etc</inline>.—</heading><chapeau>In the case of an electing large partnership—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>computations under section 773 shall be made without regard to any adjustment under section 743(b) or 108(b), but</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>a partner’s distributive share of any amount referred to in section 772(a) shall be appropriately adjusted to take into account any adjustment under section 743(b) or 108(b) with respect to such partner.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Credit Recapture Determined at Partnership Level</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of an electing large partnership—<page identifier="/us/stat/111/1006">111 STAT. 1006</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>any credit recapture shall be taken into account by the partnership, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the amount of such recapture shall be determined as if the credit with respect to which the recapture is made had been fully utilized to reduce tax.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Method of taking recapture into account</inline>.—</heading><content>An electing large partnership shall take into account a credit recapture by reducing the amount of the appropriate current year credit to the extent thereof, and if such recapture exceeds the amount of such current year credit, the partnership shall be liable to pay such excess.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Dispositions not to trigger recapture</inline>.—</heading><content>No credit recapture shall be required by reason of any transfer of an interest in an electing large partnership.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Credit recapture</inline>.—</heading><content>For purposes of this subsection, the term ‘credit recapture’ means any increase in tax under section 42(j) or 50(a).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Partnership Not Terminated by Reason of Change in Ownership</inline>.—</heading><content>Subparagraph (B) of section 708(b)(1) shall not apply to an electing large partnership.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Partnership Entitled to Certain Credits</inline>.—</heading><chapeau>The following shall be allowed to an electing large partnership and shall not be taken into account by the partners of such partnership:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>The credit provided by section 34.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>Any credit or refund under section 852(b)(3)(D).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Treatment of REMIC Residuals</inline>.—</heading><chapeau>For purposes of applying section 860E(e)(6) to any electing large partnership—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>all interests in such partnership shall be treated as held by disqualified organizations,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>in lieu of applying subparagraph (C) of section 860E(e)(6), the amount subject to tax under section 860E(e)(6) shall be excluded from the gross income of such partnership, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>subparagraph (D) of section 860E(e)(6) shall not apply.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Special Rules for Applying Certain Installment Sale Rules</inline>.—</heading><chapeau>In the case of an electing large partnership—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the provisions of sections 453(1)(3) and 453A shall be applied at the partnership level, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>in determining the amount of interest payable under such sections, such partnership shall be treated as subject to tax under this chapter at the highest rate of tax in effect under section 1 or 11.</content></paragraph> </subsection> </section> <section> <num value="775">“SEC. 775.</num> <heading>ELECTING LARGE PARTNERSHIP DEFINED.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><chapeau>For purposes of this part—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘electing large partnership’ means, with respect to any partnership taxable year, any partnership if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the number of persons who were partners in such partnership in the preceding partnership taxable year equaled or exceeded 100, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>such partnership elects the application of this part.</content></subparagraph> <continuation class="indent0 fontsize10">To the extent provided in regulations, a partnership shall cease to be treated as an electing large partnership for any partnership taxable year if in such taxable year fewer than 100 persons were partners in such partnership.<page identifier="/us/stat/111/1007">111 STAT. 1007</page></continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Election</inline>.—</heading><content>The election under this subsection shall<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> apply to the taxable year for which made and all subsequent taxable years unless revoked with the consent of the Secretary.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Special Rules for Certain Service Partnerships</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Certain partners not counted</inline>.—</heading><content>For purposes of this section, the term ‘partner’ does not include any individual performing substantial services in connection with the activities of the partnership and holding an interest in such partnership, or an individual who formerly performed substantial services in connection with such activities and who held an interest in such partnership at the time the individual performed such services.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Exclusion</inline>.—</heading><chapeau>For purposes of this part, an election under subsection (a) shall not be effective with respect to any partnership if substantially all the partners of such partnership—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>are individuals performing substantial services in connection with the activities of such partnership or are personal service corporations (as defined in section 269A(b)) the owner-employees (as defined in section 269A(b)) of which perform such substantial services,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>are retired partners who had performed such substantial services, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>are spouses of partners who are performing (or had previously performed) such substantial services.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>Special rule for lower tier partnerships.—For purposes of this subsection, the activities of a partnership shall include the activities of any other partnership in which the partnership owns directly an interest in the capital and profits of at least 80 percent.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Exclusion of Commodity Pools</inline>.—</heading><content>For purposes of this part, an election under subsection (a) shall not be effective with respect to any partnership the principal activity of which is the buying and selling of commodities (not described in section 1221(1)), or options, futures, or forwards with respect to such commodities.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Secretary May Rely on Treatment on Return</inline>.—</heading><content>If, on the partnership return of any partnership, such partnership is treated as an electing large partnership, such treatment shall be binding on such partnership and all partners of such partnership but not on the Secretary.</content> </subsection> </section> <section> <num value="776">“SEC. 776.</num> <heading>SPECIAL RULES FOR PARTNERSHIPS HOLDING OIL AND GAS PROPERTIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Computation of Percentage Depletion</inline>.—</heading><chapeau>In the case of an electing large partnership, except as provided in subsection (b)—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the allowance for depletion under section 611 with respect to any partnership oil or gas property shall be computed at the partnership level without regard to any provision of section 613A requiring such allowance to be computed separately by each partner,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>such allowance shall be determined without regard to the provisions of section 613A(c) limiting the amount of production for which percentage depletion is allowable and without regard to paragraph (1) of section 613A(d), and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>paragraph (3) of section 705(a) shall not apply.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Treatment of Certain Partners</inline>.—<page identifier="/us/stat/111/1008">111 STAT. 1008</page></heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In the case of a disqualified person, the treatment under this chapter of such person’s distributive share of any item of income, gain, loss, deduction, or credit attributable to any partnership oil or gas property shall be determined without regard to this part. Such person’s distributive share of any such items shall be excluded for purposes of making determinations under sections 772 and 773.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Disqualified person</inline>.—</heading><chapeau>For purposes of paragraph (1), the term ‘disqualified person’ means, with respect to any partnership taxable year—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>any person referred to in paragraph (2) or (4) of section 613A(d) for such person’s taxable year in which such partnership taxable year ends, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>any other person if such person’s average daily production of domestic crude oil and natural gas for such person’s taxable year in which such partnership taxable year ends exceeds 500 barrels.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Average daily production</inline>.—</heading><chapeau>For purposes of paragraph (2), a person’s average daily production of domestic crude oil and natural gas for any taxable year shall be computed as provided in section 613A(c)(2)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>by taking into account all production of domestic crude oil and natural gas (including such person’s proportionate share of any production of a partnership),</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>by treating 6,000 cubic feet of natural gas as a barrel of crude oil, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>by treating as 1 person all persons treated as 1 taxpayer under section 613A(c)(8) or among whom allocations are required under such section.</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="777">“SEC. 777.</num> <heading>REGULATIONS.</heading> <content>“The Secretary shall prescribe such regulations as may be appropriate to carry out the purposes of this part.”.</content> </section> </part> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of parts for subchapter K of chapter 1 is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Part IV.</designator> <label>Special rules for electing large partnerships ”.</label></referenceItem> </toc> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s771">26 USC 771 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to partnership taxable years beginning after December 31, 1997.</content> </subsection> </section> <section> <num value="1222">SEC. 1222.</num> <heading>SIMPLIFIED AUDIT PROCEDURES FOR ELECTING LARGE PARTNERSHIPS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Chapter 63 is amended by adding at the end thereof the following new subchapter: <quotedContent> <subchapter> <num value="D">“Subchapter D—</num><heading>Treatment of electing large partnerships</heading> <toc> <referenceItem role="part"><designator>“Part I.</designator> <label>Treatment of partnership items and adjustments.</label></referenceItem> <referenceItem role="part"><designator>“Part II.</designator> <label>Partnership level adjustments.</label></referenceItem> <referenceItem role="part"><designator>“Part III.</designator> <label>Definitions and special rules.</label></referenceItem> </toc> <part> <num value="I">“PART I—</num><heading>TREATMENT OF PARTNERSHIP ITEMS AND ADJUSTMENTS</heading> <toc> <referenceItem role="section"><designator>“Sec. 6240.</designator> <label>Application of subchapter.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 6241.</designator> <label>Partner’s return must be consistent with partnership return.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 6242.</designator> <label>Procedures for taking partnership adjustments into account.<page identifier="/us/stat/111/1009">111 STAT. 1009</page></label></referenceItem> </toc> <section> <num value="6240">“SEC. 6240.</num> <heading>APPLICATION OF SUBCHAPTER.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>This subchapter shall only apply to electing large partnerships and partners in such partnerships.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Coordination With Other Partnership Audit Procedures</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subchapter C of this chapter shall not apply to any electing large partnership other than in its capacity as a partner in another partnership which is not an electing large partnership.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Treatment where partner in other partnership</inline>.—</heading><chapeau>If an electing large partnership is a partner in another partnership which is not an electing large partnership—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>subchapter C of this chapter shall apply to items of such electing large partnership which are partnership items with respect to such other partnership, but</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>any adjustment under such subchapter C shall be taken into account in the manner provided by section 6242.</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="6241">“SEC. 6241.</num> <heading>PARTNER’S RETURN MUST BE CONSISTENT WITH PARTNERSHIP RETURN.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>A partner of any electing large partnership shall, on the partner’s return, treat each partnership item attributable to such partnership in a manner which is consistent with the treatment of such partnership item on the partnership return.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Underpayment Due to Inconsistent Treatment Assessed as Math Error</inline>.—</heading><content>Any underpayment of tax by a partner by reason of failing to comply with the requirements of subsection (a) shall be assessed and collected in the same manner as if such underpayment were on account of a mathematical or clerical error appearing on the partner’s return. Paragraph (2) of section 6213(b) shall not apply to any assessment of an underpayment referred to in the preceding sentence.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Adjustments Not To Affect Prior Year of Partners</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in paragraph (2), subsections (a) and (b) shall apply without regard to any adjustment to the partnership item under part II.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Certain changes in distributive share taken into account by partner</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>To the extent that any adjustment under part II involves a change under section 704 in a partner’s distributive share of the amount of any partnership item shown on the partnership return, such adjustment shall be taken into account in applying this title to such partner for the partner’s taxable year for which such item was required to be taken into account.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Coordination with deficiency procedures</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subchapter B shall not apply to the assessment or collection of any underpayment of tax attributable to an adjustment referred to in subparagraph (A).</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Adjustment not precluded</inline>.—</heading><content>Notwithstanding any other law or rule of law, nothing in subchapter B (or in any proceeding under subchapter B) shall preclude the assessment or collection of any underpayment of tax (or the allowance of any credit or refund <page identifier="/us/stat/111/1010">111 STAT. 1010</page>of any overpayment of tax) attributable to an adjustment referred to in subparagraph (A) and such assessment or collection or allowance (or any notice thereof) shall not preclude any notice, proceeding, or determination under subchapter B.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Period of limitations</inline>.—</heading><chapeau>The period for—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>assessing any underpayment of tax, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>filing a claim for credit or refund of any overpayment of tax,</content></clause> <continuation class="indent0 fontsize10">attributable to an adjustment referred to in subparagraph (A) shall not expire before the close of the period prescribed by section 6248 for making adjustments with respect to the partnership taxable year involved.</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Tiered structures</inline>.—</heading><content>If the partner referred to in subparagraph (A) is another partnership or an S corporation, the rules of this paragraph shall also apply to persons holding interests in such partnership or S corporation (as the case may be); except that, if such partner is an electing large partnership, the adjustment referred to in subparagraph (A) shall be taken into account in the manner provided by section 6242.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Addition to Tax for Failure to Comply With Section</inline>.—</heading> <content class="indent0 fontsize10"><b>“For addition to tax in case of partner’s disregard of requirements of this section, see part n of subchapter A of chapter 68.</b></content> </subsection> </section> <section> <num value="6242">“SEC. 6242.</num> <heading>PROCEDURES FOR TAKING PARTNERSHIP ADJUSTMENTS INTO ACCOUNT.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Adjustments Flow Through To Partners for Year in Which Adjustment Takes Effect</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If any partnership adjustment with respect to any partnership item takes effect (within the meaning of subsection (d)(2)) during any partnership taxable year and if an election under paragraph (2) does not apply to such adjustment, such adjustment shall be taken into account in determining the amount of such item for the partnership taxable year in which such adjustment takes effect. In applying this title to any person who is (directly or indirectly) a partner in such partnership during such partnership taxable year, such adjustment shall be treated as an item actually arising during such taxable year.</content></paragraph> <subparagraph class="indent2 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Partnership liable in certain cases</inline>.—</heading><chapeau>If—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>a partnership elects under this paragraph to not take an adjustment into account under paragraph (1),</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>a partnership does not make such an election but in filing its return for any partnership taxable year fails to take fully into account any partnership adjustment as required under paragraph (1), or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>any partnership adjustment involves a reduction in a credit which exceeds the amount of such credit determined for the partnership taxable year in which the adjustment takes effect,</content></subparagraph> <continuation class="indent0 fontsize10">the partnership shall pay to the Secretary an amount determined by applying the rules of subsection (b)(4) to the adjustments not so taken into account and any excess referred to in subparagraph (C).</continuation> </subparagraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Offsetting adjustments taken into account</inline>.—</heading><content>If a partnership adjustment requires another adjustment in a <page identifier="/us/stat/111/1011">111 STAT. 1011</page>taxable year after the adjusted year and before the partnership taxable year in which such partnership adjustment takes effect, such other adjustment shall be taken into account under this subsection for the partnership taxable year in which such partnership adjustment takes effect.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Coordination with part ii</inline>.—</heading><content>Amounts taken into account under this subsection for any partnership taxable year shall continue to be treated as adjustments for the adjusted year for purposes of determining whether such amounts may be readjusted under part II.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Partnership Liable for Interest and Penalties</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>If a partnership adjustment takes effect during any partnership taxable year and such adjustment results in an imputed underpayment for the adjusted year, the partnership—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>shall pay to the Secretary interest computed under paragraph (2), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>shall be liable for any penalty, addition to tax, or additional amount as provided in paragraph (3).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Determination of amount of interest</inline>.—</heading><chapeau>The interest computed under this paragraph with respect to any partnership adjustment is the interest which would be determined under chapter 67—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>on the imputed underpayment determined under paragraph (4) with respect to such adjustment,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>for the period beginning on the day after the return due date for the adjusted year and ending on the return due date for the partnership taxable year in which such adjustment takes effect (or, if earlier, in the case of any adjustment to which subsection (a)(2) applies, the date on which the payment under subsection (a)(2) is made).</content></subparagraph> <continuation class="indent0 fontsize10">Proper adjustments in the amount determined under the preceding sentence shall be made for adjustments required for partnership taxable years after the adjusted year and before the year in which the partnership adjustment takes effect by reason of such partnership adjustment.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Penalties</inline>.—</heading><content>A partnership shall be liable for any penalty, addition to tax, or additional amount for which it would have been liable if such partnership had been an individual subject to tax under chapter 1 for the adjusted year and the imputed underpayment determined under paragraph (4) were an actual underpayment (or understatement) for such year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Imputed underpayment</inline>.—</heading><chapeau>For purposes of this subsection, the imputed underpayment determined under this paragraph with respect to any partnership adjustment is the underpayment (if any) which would result—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>by netting all adjustments to items of income, gain, loss, or deduction and by treating any net increase in income as an underpayment equal to the amount of such net increase multiplied by the highest rate of tax in effect under section 1 or 11 for the adjusted year, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>by taking adjustments to credits into account as increases or decreases (whichever is appropriate) in the amount of tax.<page identifier="/us/stat/111/1012">111 STAT. 1012</page></content></subparagraph> <continuation class="indent0 fontsize10">For purposes of the preceding sentence, any net decrease in a loss shall be treated as an increase in income and a similar rule shall apply to a net increase in a loss.</continuation> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Administrative Provisions</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Any payment required by subsection (a)(2) or (b)(1)(A)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>shall be assessed and collected in the same manner as if it were a tax imposed by subtitle C, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>shall be paid on or before the return due date for the partnership taxable year in which the partnership adjustment takes effect.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Interest</inline>.—</heading><content>For purposes of determining interest, any payment required by subsection (a)(2) or (b)(1)(A) shall be treated as an underpayment of tax.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Penalties</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In the case of any failure by any partnership to pay on the date prescribed therefor any amount required by subsection (a)(2) or (b)(1)(A), there is hereby imposed on such partnership a penalty of 10 percent of the underpayment. For purposes of the preceding sentence, the term ‘underpayment’ means the excess of any payment required under this section over the amount (if any) paid on or before the date prescribed therefor.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Accuracy-related and fraud penalties made applicable</inline>.—</heading><content>For purposes of part II of subchapter A of chapter 68, any payment required by subsection (a)(2) shall be treated as an underpayment of tax.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Definitions and Special Rules</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Partnership adjustment</inline>.—</heading><content>The term ‘partnership adjustment’ means any adjustment in the amount of any partnership item of an electing large partnership.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">When adjustment takes effect</inline>.—</heading><chapeau>A partnership adjustment takes effect—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>in the case of an adjustment pursuant to the decision of a court in a proceeding brought under part II, when such decision becomes final,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>in the case of an adjustment pursuant to any administrative adjustment request under section 6251, when such adjustment is allowed by the Secretary, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>in any other case, when such adjustment is made.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Adjusted year</inline>.—</heading><content>The term ‘adjusted year’ means the partnership taxable year to which the item being adjusted relates.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Return due date</inline>.—</heading><content>The term ‘return due date’ means, with respect to any taxable year, the date prescribed for filing the partnership return for such taxable year (determined without regard to extensions).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Adjustments involving changes in character</inline>.—</heading><content>Under regulations, appropriate adjustments in the application of this section shall be made for purposes of taking into account partnership adjustments which involve a change in the character of any item of income, gain, loss, or deduction.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Payments Nondeductible</inline>.—</heading><content>No deduction shall be allowed under subtitle A for any payment required to be made by an electing large partnership under this section.<page identifier="/us/stat/111/1013">111 STAT. 1013</page></content> </subsection> </section> </part> <part> <num value="II">“PART II—</num><heading>PARTNERSHIP LEVEL ADJUSTMENTS</heading> <toc> <referenceItem role="section"><designator>“Subpart A.</designator> <label>Adjustments by Secretary.</label></referenceItem> <referenceItem role="section"><designator>“Subpart B.</designator> <label>Claims for adjustments by partnership.</label></referenceItem> </toc> <subpart> <num value="A">“Subpart A—</num><heading>Adjustments by Secretary</heading> <toc> <referenceItem role="section"><designator>“Sec. 6245.</designator> <label>Secretarial authority.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 6246.</designator> <label>Restrictions on partnership adjustments.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 6247.</designator> <label>Judicial review of partnership adjustment.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 6248.</designator> <label>Period of limitations for making adjustments.</label></referenceItem> </toc> <section> <num value="6245">“SEC. 6245.</num> <heading>SECRETARIAL AUTHORITY.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>The Secretary is authorized and directed to make adjustments at the partnership level in any partnership item to the extent necessary to have such item be treated in the manner required.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Notice of Partnership Adjustment</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If the Secretary determines that a partnership adjustment is required, the Secretary is authorized to send notice of such adjustment to the partnership by certified mail or registered mail. Such notice shall be sufficient if mailed to the partnership at its last known address even if the partnership has terminated its existence.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Further notices restricted</inline>.—</heading><content>If the Secretary mails a notice of a partnership adjustment to any partnership for any partnership taxable year and the partnership files a petition under section 6247 with respect to such notice, in the absence of a showing of fraud, malfeasance, or misrepresentation of a material fact, the Secretary shall not mail another such notice to such partnership with respect to such taxable year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Authority to rescind notice with partnership consent</inline>.—</heading><content>The Secretary may, with the consent of the partnership, rescind any notice of a partnership adjustment mailed to such partnership. Any notice so rescinded shall not be treated as a notice of a partnership adjustment, for purposes of this section, section 6246, and section 6247, and the taxpayer shall have no right to bring a proceeding under section 6247 with respect to such notice. Nothing in this subsection shall affect any suspension of the running of any period of limitations during any period during which the rescinded notice was outstanding.</content></paragraph> </subsection> </section> <section> <num value="6246">“SEC. 6246.</num> <heading>RESTRICTIONS ON PARTNERSHIP ADJUSTMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><chapeau>Except as otherwise provided in this chapter, no adjustment to any partnership item may be made (and no levy or proceeding in any court for the collection of any amount resulting from such adjustment may be made, begun or prosecuted) before—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the close of the 90th day after the day on which a notice of a partnership adjustment was mailed to the partnership, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>if a petition is filed under section 6247 with respect to such notice, the decision of the court has become final.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <content>Premature Action May Be Enjoined.—Notwithstanding section 7421(a), any action which violates subsection (a) may be <page identifier="/us/stat/111/1014">111 STAT. 1014</page>enjoined in the proper court, including the Tax Court. The Tax Court shall have no jurisdiction to enjoin any action under this subsection unless a timely petition has been filed under section 6247 and then only in respect of the adjustments that are the subject of such petition.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Exceptions to Restrictions on Adjustments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Adjustments arising out of math or clerical errors</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If the partnership is notified that, on account of a mathematical or clerical error appearing on the partnership return, an adjustment to a partnership item is required, rules similar to the rules of paragraphs (1) and (2) of section 6213(b) shall apply to such adjustment.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Special rule</inline>.—</heading><content>If an electing large partnership is a partner in another electing large partnership, any adjustment on account of such partnership’s failure to comply with the requirements of section 6241(a) with respect to its interest in such other partnership shall be treated as an adjustment referred to in subparagraph (A), except that paragraph (2) of section 6213(b) shall not apply to such adjustment.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Partnership may waive restrictions</inline>.—</heading><content>The partnership shall at any time (whether or not a notice of partnership adjustment has been issued) have the right, by a signed notice in writing filed with the Secretary, to waive the restrictions provided in subsection (a) on the making of any partnership adjustment.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Limit Where No Proceeding Begun</inline>.—</heading><content>If no proceeding under section 6247 is begun with respect to any notice of a partnership adjustment during the 90-day period described in subsection (a), the amount for which the partnership is liable under section 6242 (and any increase in any partner’s liability for tax under chapter 1 by reason of any adjustment under section 6242(a)) shall not exceed the amount determined in accordance with such notice.</content> </subsection> </section> <section> <num value="6247">“SEC. 6247.</num> <heading>JUDICIAL REVIEW OF PARTNERSHIP ADJUSTMENT.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><chapeau>Within 90 days after the date on which a notice of a partnership adjustment is mailed to the partnership with respect to any partnership taxable year, the partnership may file a petition for a readjustment of the partnership items for such taxable year with—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the Tax Court,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the district court of the United States for the district in which the partnership’s principal place of business is located, or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>the Claims Court.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Jurisdictional Requirement for Bringing Action in District Court or Claims Court</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>A readjustment petition under this section may be filed in a district court of the United States or the Claims Court only if the partnership filing the petition deposits with the Secretary, on or before the date the petition is filed, the amount for which the partnership would be liable under section 6242(b) (as of the date of the filing of the petition) if the partnership items were adjusted as provided by the <page identifier="/us/stat/111/1015">111 STAT. 1015</page>notice of partnership adjustment. The court may by order provide that the jurisdictional requirements of this paragraph are satisfied where there has been a good faith attempt to satisfy such requirement and any shortfall of the amount required to be deposited is timely corrected.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Interest payable</inline>.—</heading><content>Any amount deposited under paragraph (1), while deposited, shall not be treated as a payment of tax for purposes of this title (other than chapter 67).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Scope of Judicial Review</inline>.—</heading><content>A court with which a petition is filed in accordance with this section shall have jurisdiction to determine all partnership items of the partnership for the partnership taxable year to which the notice of partnership adjustment relates and the proper allocation of such items among the partners (and the applicability of any penalty, addition to tax, or additional amount for which the partnership may be liable under section 6242(b)).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Determination of Court Reviewable</inline>.—</heading><content>Any determination by a court under this section shall have the force and effect of a decision of the Tax Court or a final judgment or decree of the district court or the Claims Court, as the case may be, and shall be reviewable as such. The date of any such determination shall be treated as being the date of the court’s order entering the decision.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Effect of Decision Dismissing Action</inline>.—</heading><content>If an action brought under this section is dismissed other than by reason of a rescission under section 6245(b)(3), the decision of the court dismissing the action shall be considered as its decision that the notice of partnership adjustment is correct, and an appropriate order shall be entered in the records of the court.</content> </subsection> </section> <section> <num value="6248">“SEC. 6248.</num> <heading>PERIOD OF LIMITATIONS FOR MAKING ADJUSTMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><chapeau>Except as otherwise provided in this section, no adjustment under this subpart to any partnership item for any partnership taxable year may be made after the date which is 3 years after the later of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the date on which the partnership return for such taxable year was filed, or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the last day for filing such return for such year (determined without regard to extensions).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Extension by Agreement</inline>.—</heading><content>The period described in subsection (a) (including an extension period under this subsection) may be extended by an agreement entered into by the Secretary and the partnership before the expiration of such period.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Special Rule in Case of Fraud, Etc</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">False return</inline>.—</heading><content>In the case of a false or fraudulent partnership return with intent to evade tax, the adjustment may be made at any time.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Substantial omission of income</inline>.—</heading><content>If any partnership omits from gross income an amount properly includible therein which is in excess of 25 percent of the amount of gross income stated in its return, subsection (a) shall be applied by substituting ‘6 years’ for ‘3 years’.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">No return</inline>.—</heading><content>In the case of a failure by a partnership to file a return for any taxable year, the adjustment may be made at any time.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Return filed by secretary</inline>.—</heading><content>For purposes of this section, a return executed by the Secretary under subsection <page identifier="/us/stat/111/1016">111 STAT. 1016</page>(b) of section 6020 on behalf of the partnership shall not be treated as a return of the partnership.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Suspension When Secretary Mails Notice of Adjustment</inline>.—</heading><chapeau>If notice of a partnership adjustment with respect to any taxable year is mailed to the partnership, the running of the period specified in subsection (a) (as modified by the other provisions of this section) shall be suspended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>for the period during which an action may be brought under section 6247 (and, if a petition is filed under section 6247 with respect to such notice, until the decision of the court becomes final), and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>for 1 year thereafter.</content></paragraph> </subsection> </section> </subpart> <subpart> <num value="B">“Subpart B—</num><heading>Claims for Adjustments by Partnership</heading> <toc> <referenceItem role="section"><designator>“Sec. 6251.</designator> <label>Administrative adjustment requests.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 6252.</designator> <label>Judicial review where administrative adjustment request is not allowed in full.</label></referenceItem> </toc> <section> <num value="6251">“SEC. 6251.</num> <heading>ADMINISTRATIVE ADJUSTMENT REQUESTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><chapeau>A partnership may file a request for an administrative adjustment of partnership items for any partnership taxable year at any time which is—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <chapeau>within 3 years after the later of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the date on which the partnership return for such year is filed, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the last day for filing the partnership return for such year (determined without regard to extensions), and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>before the mailing to the partnership of a notice of a partnership adjustment with respect to such taxable year.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <content>Secretarial Action.—If a partnership files an administrative adjustment request under subsection (a), the Secretary may allow any part of the requested adjustments.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Special Rule in Case of Extension Under Section 6248</inline>.—</heading><content>If the period described in section 6248(a) is extended pursuant to an agreement under section 6248(b), the period prescribed by subsection (a)(1) shall not expire before the date 6 months after the expiration of the extension under section 6248(b).</content> </subsection> </section> <section> <num value="6252">“SEC. 6252.</num> <heading>JUDICIAL REVIEW WHERE ADMINISTRATIVE ADJUSTMENT REQUEST IS NOT ALLOWED IN FULL.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>If any part of an administrative adjustment request filed under section 6251 is not allowed by the Secretary, the partnership may file a petition for an adjustment with respect to the partnership items to which such part of the request relates with—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the Tax Court,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the district court of the United States for the district in which the principal place of business of the partnership is located, or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>the Claims Court.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Period for Filing Petition</inline>.—</heading><chapeau>A petition may be filed under subsection (a) with respect to partnership items for a partnership taxable year only—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>after the expiration of 6 months from the date of filing of the request under section 6251, and<page identifier="/us/stat/111/1017">111 STAT. 1017</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>before the date which is 2 years after the date of such request.</content></paragraph> <continuation class="indent0 fontsize10">The 2-year period set forth in paragraph (2) shall be extended for such period as may be agreed upon in writing by the partnership and the Secretary.</continuation> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Coordination With Subpart A</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Notice of partnership adjustment before filing of petition</inline>.—</heading><content>No petition may be filed under this section after the Secretary mails to the partnership a notice of a partnership adjustment for the partnership taxable year to which the request under section 6251 relates.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Notice of partnership adjustment after filing but before hearing of petition</inline>.—</heading><content>If the Secretary mails to the partnership a notice of a partnership adjustment for the partnership taxable year to which the request under section 6251 relates after the filing of a petition under this subsection but before the hearing of such petition, such petition shall be treated as an action Drought under section 6247 with respect to such notice, except that subsection (b) of section 6247 shall not apply.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Notice must be before expiration of statute of limitations</inline>.—</heading><content>A notice of a partnership adjustment for the partnership taxable year shall be taken into account under paragraphs (1) and (2) only if such notice is mailed before the expiration of the period prescribed by section 6248 for making adjustments to partnership items for such taxable year.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Scope of Judicial Review</inline>.—</heading><content>Except in the case described in paragraph (2) of subsection (c), a court with which a petition is filed in accordance with this section shall have jurisdiction to determine only those partnership items to which the part of the request under section 6251 not allowed by the Secretary relates and those items with respect to which the Secretary asserts adjustments as offsets to the adjustments requested by the partnership.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Determination of Court Reviewable</inline>.—</heading><content>Any determination by a court under this section shall have the force and effect of a decision of the Tax Court or a final judgment or decree of the district court or the Claims Court, as the case may be, and shall be reviewable as such. The date of any such determination shall be treated as being the date of the court’s order entering the decision.</content> </subsection> </section> </subpart> </part> <part> <num value="III">“PART III—</num><heading>DEFINITIONS AND SPECIAL RULES</heading> <toc> <referenceItem role="section"><designator>“Sec. 6255.</designator> <label>Definitions and special rules.</label></referenceItem> </toc> <section> <num value="6255">“SEC. 6255.</num> <heading>DEFINITIONS AND SPECIAL RULES.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this subchapter—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Electing large partnership</inline>.—</heading><content>The term ‘electing large partnership’ has the meaning given to such term by section 775.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Partnership item</inline>.—</heading><content>The term ‘partnership item’ has the meaning given to such term by section 6231(a)(3).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Partners Bound by Actions of Partnership, Etc</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>Designation of partner.—Each electing large partnership shall designate (in the manner prescribed by the Secretary) a partner (or other person) who shall have the sole <page identifier="/us/stat/111/1018">111 STAT. 1018</page>authority to act on behalf of such partnership under this subchapter. In any case in which such a designation is not in effect, the Secretary may select any partner as the partner with such authority.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Binding effect</inline>.—</heading><chapeau>An electing large partnership and all partners of such partnership shall be bound—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>by actions taken under this subchapter by the partnership, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>by any decision in a proceeding brought under this subchapter.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Partnerships Having Principal Place of Business Outside the United States</inline>.—</heading><content>For purposes of sections 6247 and 6252, a principal place of business located outside the United States shall be treated as located in the District of Columbia.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Treatment Where Partnership Ceases To Exist</inline>.—</heading><content>If a partnership ceases to exist before a partnership adjustment under this subchapter takes effect, such adjustment shall be taken into account by the former partners of such partnership under regulations prescribed by the Secretary.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Date Decision Becomes Final</inline>.—</heading><content>For purposes of this subchapter, the principles of section 7481(a) shall be applied in determining the date on which a decision of a district court or the Claims Court becomes final.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Partnerships in Cases Under Title 11 of the United States Code</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Suspension of period of limitations on making adjustment, assessment, or collection</inline>.—</heading><chapeau>The running of any period of limitations provided in this subchapter on making a partnership adjustment (or provided by section 6501 or 6502 on the assessment or collection of any amount required to be paid under section 6242) shall, in a case under title 11 of the United States Code, be suspended during the period during which the Secretary is prohibited by reason of such case from making the adjustment (or assessment or collection) and—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>for adjustment or assessment, 60 days thereafter, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>for collection, 6 months thereafter.</content></subparagraph> <continuation class="indent0 fontsize10"><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote>A rule similar to the rule of section 6213(f)(2) shall apply for purposes of section 6246.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Suspension of period of limitation for filing for judicial review</inline>.—</heading><content>The running of the period specified in section 6247(a) or 6252(b) shall, in a case under title 11 of the United States Code, be suspended during the period during which the partnership is prohibited by reason of such case from filing a petition under section 6247 or 6252 and for 60 days thereafter.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Regulations</inline>.—</heading><chapeau>The Secretary shall prescribe such regulations as may be necessary to carry out the provisions of this subchapter, including regulations—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>to prevent abuse through manipulation of the provisions of this subchapter, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>providing that this subchapter shall not apply to any case described in section 6231(c)(1) (or the regulations prescribed thereunder) where the application of this subchapter to such a case would interfere with the effective and efficient enforcement of this title.<page identifier="/us/stat/111/1019">111 STAT. 1019</page></content></paragraph> <continuation class="indent0 fontsize10">In any case to which this subchapter does not apply by reason Applicability, of paragraph (2), rules similar to the rules of sections 6229(f) and 6255(f) shall apply.”.</continuation> </subsection> </section> </part> </subchapter> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Subsection (a) of section 7421 is amended by inserting “<quotedText>6246(b),</quotedText>” after “6213(a),”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Subsection (c) of section 7459 is amended by striking “<quotedText>or section 6228(a)</quotedText>” and inserting “<quotedText>, 6228(a), 6247, or 6252</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Subparagraph (E) of section 7482(b)(1) is amended by striking “<quotedText>or 6228(a)</quotedText>” and inserting “<quotedText>, 6228(a), 6247, or 6252</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num><subparagraph class="inline"><num value="A">(A)</num> <content>The text of section 7485(b) is amended by striking “<quotedText>or 6228(a)</quotedText>” and inserting “<quotedText>, 6228(a), 6247, or 6252</quotedText>”.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B)</num> <content>The subsection heading for section 7485(b) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Bond in Case of Appeal of Certain Partnership-Related Decisions</inline>.—”.</heading> </subsection> </quotedContent> </content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of subchapters for chapter 63 is amended by adding at the end thereof the following new item: <quotedContent> <referenceItem role="subchapter"><designator>“Subchapter D.</designator> <label>Treatment of electing large partnerships.”.</label></referenceItem> </quotedContent> </content></subsection> </section> <section> <num value="1223">SEC. 1223.</num> <heading>DUE DATE FOR FURNISHING INFORMATION TO PARTNERS OF ELECTING LARGE PARTNERSHIPS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Subsection (b) of section 6031 (relating to copies to partners) is amended by adding at the end the following new sentence: “In the case of an electing large partnership (as defined in section 775), such information shall be furnished on or before the first March 15 following the close of such taxable year.”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>Treatment as Information Return.—Section 6724 is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Special rule for Certain Partnership Returns</inline>.—</heading><content>If any partnership return under section 6031(a) is required under section 6011(e) to be filed on magnetic media or in other machine-readable form, for purposes of this part, each schedule required to be included with such return with respect to each partner shall be treated as a separate information return.”.</content> </subsection> </quotedContent> </content></subsection> </section> <section> <num value="1224">SEC. 1224.</num> <heading>RETURNS REQUIRED ON MAGNETIC MEDIA.</heading> <content>Paragraph (2) of section 6011(e) (relating to returns on magnetic media) is amended by adding at the end thereof the following new sentence: <quotedContent> <p class="indent0 fontsize10">“Notwithstanding the preceding sentence, the Secretary shall require partnerships having more than 100 partners to file returns on magnetic media ”.</p> </quotedContent> </content></section> <section> <num value="1225">SEC. 1225.</num> <heading>TREATMENT OF PARTNERSHIP ITEMS OF INDIVIDUAL RETIREMENT ACCOUNTS.</heading> <content>Subsection (b) of section 6012 is amended by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">IRA share of partnership income</inline>.—</heading><content>In the case of a trust which is exempt from taxation under section 408(e), for purposes of this section, the trust’s distributive share of items of gross income and gain of any partnership to which subchapter C or D of chapter 63 applies shall be treated as equal to the trust’s distributive share of the taxable income of such partnership.”.<page identifier="/us/stat/111/1020">111 STAT. 1020</page></content></paragraph> </quotedContent> </content></section> <section> <num value="1226">SEC. 1226.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6011">26 USC 6011 note</ref>.</p></sidenote> <heading>EFFECTIVE DATE.</heading> <content>The amendments made by this part shall apply to partnership taxable years ending on or after December 31, 1997.</content> </section> </part> <part> <num value="II">PART II—</num><heading>PROVISIONS RELATED TO TEFRA PARTNERSHIP PROCEEDINGS</heading> <section> <num value="1231">SEC. 1231.</num> <heading>TREATMENT OF PARTNERSHIP ITEMS IN DEFICIENCY PROCEEDINGS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Notice.</p></sidenote> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subchapter C of chapter 63 is amended by adding at the end the following new section: <quotedContent> <section> <num value="6234">“SEC. 6234.</num> <heading>DECLARATORY JUDGMENT RELATING TO TREATMENT OF ITEMS OTHER THAN PARTNERSHIP ITEMS WITH RESPECT TO AN OVERSHELTERED RETURN.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><chapeau>If—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>a taxpayer files an oversheltered return for a taxable year,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the Secretary makes a determination with respect to the treatment of items (other than partnership items) of such taxpayer for such taxable year, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>the adjustments resulting from such determination do not give rise to a deficiency (as defined in section 6211) but would give rise to a deficiency if there were no net loss from partnership items,</content></paragraph> <continuation class="indent0 fontsize10">the Secretary is authorized to send a notice of adjustment reflecting such determination to the taxpayer by certified or registered mail.</continuation> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Oversheltered Return</inline>.—</heading><chapeau>For purposes of this section, the term ‘oversheltered return’ means an income tax return which—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>shows no taxable income for the taxable year, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>shows a net loss from partnership items.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Judicial Review in the Tax Court</inline>.—</heading><content>Within 90 days, or 150 days if the notice is addressed to a person outside the United States, after the day on which the notice of adjustment authorized in subsection (a) is mailed to the taxpayer, the taxpayer may file a petition with the Tax Court for redetermination of the adjustments. Upon the filing of such a petition, the Tax Court shall have jurisdiction to make a declaration with respect to all items (other than partnership items and affected items which require partner level determinations as described in section 6230(a)(2)(A)(i)) for the taxable year to which the notice of adjustment relates, in accordance with the principles of section 6214(a). Any such declaration shall have the force and effect of a decision of the Tax Court and shall be reviewable as such.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Failure To File Petition</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in paragraph (2), if the taxpayer does not file a petition with the Tax Court within the time prescribed in subsection (c), the determination of the Secretary set forth in the notice of adjustment that was mailed to the taxpayer shall be deemed to be correct.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Exception</inline>.—</heading><chapeau>Paragraph (1) shall not apply after the date that the taxpayer—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>files a petition with the Tax Court within the time prescribed in subsection (c) with respect to a subsequent notice of adjustment relating to the same taxable year, or<page identifier="/us/stat/111/1021">111 STAT. 1021</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>files a claim for refund of an overpayment of tax under section 6511 for the taxable year involved.</content></subparagraph> </paragraph> <continuation class="indent0 fontsize10">If a claim for refund is filed by the taxpayer, then solely for purposes of determining (for the taxable year involved) the amount of any computational adjustment in connection with a partnership proceeding under this subchapter (other than under this section) or the amount of any deficiency attributable to affected items in a proceeding under section 6230(a)(2), the items that are the subject of the notice of adjustment shall be presumed to have been correctly reported on the taxpayer’s return during the pendency of the refund claim (and, if within the time prescribed by section 6532 the taxpayer commences a civil action for refund under section 7422, until the decision in the refund action becomes final).</continuation> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Limitations Period</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Any notice to a taxpayer under subsection (a) shall be mailed before the expiration of the period prescribed by section 6501 (relating to the period of limitations on assessment).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Suspension when secretary mails notice of adjustment</inline>.—</heading><content>If the Secretary mails a notice of adjustment to the taxpayer for a taxable year, the period of limitations on the making of assessments shall be suspended for the period during which the Secretary is prohibited from making the assessment (and, in any event, if a proceeding in respect of the notice of adjustment is placed on the docket of the Tax Court, until the decision of the Tax Court becomes final), and for 60 days thereafter.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Restrictions on assessment</inline>.—</heading><chapeau>Except as otherwise provided in section 6851, 6852, or 6861, no assessment of a deficiency with respect to any tax imposed by subtitle A attributable to any item (other than a partnership item or any item affected by a partnership item) shall be made—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>until the expiration of the applicable 90-day or 150-day period set forth in subsection (c) for filing a petition with the Tax Court, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>if a petition has been filed with the Tax Court, until the decision of the Tax Court has become final.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <content>Further Notices of Adjustment Restricted.—If the Secretary mails a notice of adjustment to the taxpayer for a taxable year and the taxpayer files a petition with the Tax Court within the time prescribed in subsection (c), the Secretary may not mail another such notice to the taxpayer with respect to the same taxable year in the absence of a showing of fraud, malfeasance, or misrepresentation of a material fact.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Coordination With Other Proceedings Under This Subchapter</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The treatment of any item that has been determined pursuant to subsection (c) or (d) shall be taken into account in determining the amount of any computational adjustment that is made in connection with a partnership proceeding under this subchapter (other than under this section), or the amount of any deficiency attributable to affected items in a proceeding under section 6230(a)(2), for the taxable year involved. Notwithstanding any other law or rule of law pertaining to the period of limitations on the making of assessments, for purposes of the preceding sentence, any adjustment <page identifier="/us/stat/111/1022">111 STAT. 1022</page>made in accordance with this section shall be taken into account regardless of whether any assessment has been made with respect to such adjustment.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Special rule in case of computational adjustment</inline>.—</heading><content>In the case of a computational adjustment that is made in connection with a partnership proceeding under this subchapter (other than under this section), the provisions of paragraph (1) shall apply only if the computational adjustment is made within the period prescribed by section 6229 for assessing any tax under subtitle A which is attributable to any partnership item or affected item for the taxable year involved.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Conversion to deficiency proceeding</inline>.—</heading><chapeau></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>after the notice referred to in subsection (a) is mailed to a taxpayer for a taxable year but before the expiration of the period for filing a petition with the Tax Court under subsection (c) (or, if a petition is filed with the Tax Court, before the Tax Court makes a declaration for that taxable year), the treatment of any partnership item for the taxable year is finally determined, or any such item ceases to be a partnership item pursuant to section 6231(b), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>as a result of that final determination or cessation, a deficiency can be determined with respect to the items that are the subject of the notice of adjustment,</content></subparagraph> <continuation class="indent0 fontsize10">the notice of adjustment shall be treated as a notice of deficiency under section 6212 and any petition filed in respect of the notice shall be treated as an action brought under section 6213.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Finally determined</inline>.—</heading><chapeau>For purposes of this subsection, the treatment of partnership items shall be treated as finally determined if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the Secretary enters into a settlement agreement (within the meaning of section 6224) with the taxpayer regarding such items,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>a notice of final partnership administrative adjustment has been issued and—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>no petition has been filed under section 6226 and the time for doing so has expired, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>a petition has been filed under section 6226 and the decision of the court has become final, or</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>the period within which any tax attributable to such items may be assessed against the taxpayer has expired.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Special Rules if Secretary Incorrectly Determines Applicable Procedure</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Special rule if secretary erroneously mails notice of adjustment</inline>.—</heading><content>If the Secretary erroneously determines that subchapter B does not apply to a taxable year of a taxpayer and consistent with that determination timely mails a notice of adjustment to the taxpayer pursuant to subsection (a) of this section, the notice of adjustment shall be treated as a notice of deficiency under section 6212 and any petition that is filed in respect of the notice shall be treated as an action brought under section 6213.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Special rule if secretary erroneously mails notice of deficiency</inline>.—</heading><content>If the Secretary erroneously determines that subchapter B applies to a taxable year of a taxpayer <page identifier="/us/stat/111/1023">111 STAT. 1023</page>and consistent with that determination timely mails a notice of deficiency to the taxpayer pursuant to section 6212, the notice of deficiency shall be treated as a notice of adjustment under subsection (a) and any petition that is filed in respect of the notice shall be treated as an action brought under subsection (c).”.</content></paragraph> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Treatment of Partnership Items in Deficiency Proceedings</inline>.—</heading><content>Section 6211 (defining deficiency) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Coordination With Subchapter C</inline>.—</heading><content>In determining the amount of any deficiency for purposes of this subchapter, adjustments to partnership items shall be made only as provided in subchapter C”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Coordination With Subchapter C</inline>.—</heading><content>In determining the amount of any deficiency for purposes of this subchapter, adjustments to partnership items shall be made only as provided in subchapter C”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections for subchapter C of chapter 63 is amended by adding at the end the following new item: <quotedContent> <referenceItem role="section"><designator>“Sec. 6234.</designator> <label>Declaratory judgment relating to treatment of items other than partnership items with respect to an oversheltered return.”.</label></referenceItem> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Effective Date</inline>.—T</heading><content>he amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6211">26 USC 6211 note</ref>.</p></sidenote> shall apply to partnership taxable years ending after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1232">SEC. 1232.</num> <heading>PARTNERSHIP RETURN TO BE DETERMINATIVE OF AUDIT PROCEDURES TO BE FOLLOWED.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 6231 (relating to definitions and special rules) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Partnership Return To Be Determinative of Whether Subchapter Applies</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Determination that subchapter applies</inline>.—</heading><content>If, on the basis of a partnership return for a taxable year, the Secretary reasonably determines that this subchapter applies to such partnership for such year but such determination is erroneous, then the provisions of this subchapter are hereby extended to such partnership (and its items) for such taxable year and to partners of such partnership.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Determination that subchapter does not apply</inline>.—</heading><content>If, on the basis of a partnership return for a taxable year, the Secretary reasonably determines that this subchapter does not apply to such partnership for such year but such determination is erroneous, then the provisions of this subchapter shall not apply to such partnership (and its items) for such taxable year or to partners of such partnership.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6231">26 USC 6231 note</ref>.</p></sidenote> shall apply to partnership taxable years ending after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1233">SEC. 1233.</num> <heading>PROVISIONS RELATING TO STATUTE OF LIMITATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Suspension of Statute Where Untimely Petition Filed</inline>.—</heading><content>Paragraph (1) of section 6229(d) (relating to suspension where Secretary makes administrative adjustment) is amended by striking all that follows “section 6226” and inserting the following: “(and, if a petition is filed under section 6226 with respect to such administrative adjustment, until the decision of the court becomes final), and”.<page identifier="/us/stat/111/1024">111 STAT. 1024</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Suspension of Statute During Bankruptcy Proceeding</inline>.—</heading><content>Section 6229 is amended by adding at the end the following new subsection: <quotedContent> <num value="h">“(h)</num> <heading><inline class="smallCaps">Suspension During Pendency of Bankruptcy Proceeding</inline>.—</heading><chapeau>If a petition is filed naming a partner as a debtor in a bankruptcy proceeding under title 11 of the United States Code, the running of the period of limitations provided in this section with respect to such partner shall be suspended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>for the period during which the Secretary is prohibited by reason of such bankruptcy proceeding from making an assessment, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>for 60 days thereafter.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Tax Matters Partner in Bankruptcy</inline>.—</heading><content>Section 6229(b) is amended by redesignating paragraph (2) as paragraph (3) and by inserting after paragraph (1) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Special rule with respect to debtors in title ii cases</inline>.—</heading><content>Notwithstanding any other law or rule of law, if an agreement is entered into under paragraph (1)(B) and the agreement is signed by a person who would be the tax matters partner but for the fact that, at the time that the agreement is executed, the person is a debtor in a bankruptcy proceeding under title 11 of the United States Code, such agreement shall be binding on all partners in the partnership unless the Secretary has been notified of the bankruptcy proceeding in accordance with regulations prescribed by the Secretary.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6229">26 USC 6229 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Subsections (a) and (b)</inline>.—</heading><content>The amendments made by subsections (a) and (b) shall apply to partnership taxable years with respect to which the period under section 6229 of the Internal Revenue Code of 1986 for assessing tax has not expired on or before the date of the enactment of this Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Subsection (c)</inline>.—</heading><content>The amendment made by subsection (c) shall apply to agreements entered into after the date of the enactment of this Act.</content></paragraph> </subsection> </section> <section> <num value="1234">SEC. 1234.</num> <heading>EXPANSION OF SMALL PARTNERSHIP EXCEPTION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Clause (i) of section 6231(a)(1)(B) (relating to exception for small partnerships) is amended to read as follows: <quotedContent> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The term ‘partnership’ shall not include any partnership having 10 or fewer partners each of whom is an individual (other than a nonresident alien), a C corporation, or an estate of a deceased partner. For purposes of the preceding sentence, a husband and wife (and their estates) shall be treated as 1 partner.”.</content></clause> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6231">26 USC 6231 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section shall apply to partnership taxable years ending after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1235">SEC. 1235.</num> <heading>EXCLUSION OF PARTIAL SETTLEMENTS FROM 1-YEAR LIMITATION ON ASSESSMENT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Subsection (f) of section 6229 (relating to items becoming nonpartnership items) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>(f) <inline class="smallCaps">Items Becoming Nonpartnership Items</inline>.—If</quotedText>” and inserting the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Special Rules</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Items becoming nonpartnership items</inline>.—</heading><content>If”,<page identifier="/us/stat/111/1025">111 STAT. 1025</page></content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by moving the text of such subsection 2 ems to the right, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Special rule for partial settlement agreements</inline>.—</heading><content>If a partner enters into a settlement agreement with the Secretary with respect to the treatment of some of the partnership items in dispute for a partnership taxable year but other partnership items for such year remain in dispute, the period of limitations for assessing any tax attributable to the settled items shall be determined as if such agreement had not been entered into.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6229">26 USC 6229 note</ref>.</p></sidenote> shall apply to settlements entered into after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1236">SEC. 1236.</num> <heading>EXTENSION OF TIME FOR FILING A REQUEST FOR ADMINISTRATIVE ADJUSTMENT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 6227 (relating to administrative adjustment requests) is amended by redesignating subsections (b) and (c) as subsections (c) and (d), respectively, and by inserting after subsection (a) the following new subsection:</content></subsection> <subsection><num value="b">“(b)</num> <heading><inline class="smallCaps">Special Rule in Case of Extension of Period of Limitations Under Section 6229</inline>.—</heading><chapeau>The period prescribed by subsection (a)(1) for filing of a request for an administrative adjustment shall be extended—</chapeau> <paragraph><num value="1">“(1)</num> <content>for the period within which an assessment may be made pursuant to an agreement (or any extension thereof) under section 6229(b), and</content></paragraph> <paragraph><num value="2">“(2)</num> <content>for 6 months thereafter.”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6227">26 USC 6227 note</ref>.</p></sidenote> shall take effect as if included in the amendments made by section 402 of the Tax Equity and Fiscal Responsibility Act of 1982.</content> </subsection> </section> <section> <num value="1237">SEC. 1237.</num> <heading>AVAILABILITY OF INNOCENT SPOUSE RELIEF IN CONTEXT OF PARTNERSHIP PROCEEDINGS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (a) of section 6230 is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Special rule in case of assertion by partner’s spouse of innocent spouse relief</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>Notwithstanding section 6404(b), if the spouse of a partner asserts that section 6013(e) applies with respect to a liability that is attributable to any adjustment to a partnership item, then such spouse may file with the Secretary within 60 days after the notice of computational adjustment is mailed to the spouse a request for abatement of the assessment specified in such notice. Upon receipt of such request, the Secretary shall abate the assessment. Any reassessment of the tax with respect to which an abatement is made under this subparagraph shall be subject to the deficiency procedures prescribed by subchapter B. The period for making any such reassessment shall not expire before the expiration of 60 days after the date of such abatement.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>If the spouse files a petition with the Tax Court pursuant to section 6213 with respect to the request for abatement described in subparagraph (A), the Tax Court shall only have jurisdiction pursuant to this section to determine whether the requirements of section 6013(e) <page identifier="/us/stat/111/1026">111 STAT. 1026</page>have been satisfied. For purposes of such determination, the treatment of partnership items under the settlement, the final partnership administrative adjustment, or the decision of the court (whichever is appropriate) that gave rise to the liability in question shall be conclusive.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> <content>Rules similar to the rules contained in subparagraphs (B) and (C) of paragraph (2) shall apply for purposes of this paragraph.”.</content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Claims for Refund</inline>.—</heading><content>Subsection (c) of section 6230 is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Rules for seeking innocent spouse relief</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The spouse of a partner may file a claim for refund on the ground that the Secretary failed to relieve the spouse under section 6013(e) from a liability that is attributable to an adjustment to a partnership item.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Time for filing claim</inline>.—</heading><content>Any claim under subparagraph (A) shall be filed within 6 months after the day on which the Secretary mails to the spouse the notice of computational adjustment referred to in subsection (a)(3)(A).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Suit if claim not allowed</inline>.—</heading><content>If the claim under subparagraph (B) is not allowed, the spouse may bring suit with respect to the claim within the period specified in paragraph (3).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Prior determinations are binding</inline>.—</heading><content>For purposes of any claim or suit under this paragraph, the treatment of partnership items under the settlement, the final partnership administrative adjustment, or the decision of the court (whichever is appropriate) that gave rise to the liability in question shall be conclusive.”.</content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Technical Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Paragraph (1) of section 6230(a) is amended by striking “<quotedText>paragraph (2)</quotedText>” and inserting “<quotedText>paragraph (2) or (3)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Subsection (a) of section 6503 is amended by striking “<quotedText>section 6230(a)(2)(A)</quotedText>” and inserting “<quotedText>paragraph (2)(A) or (3) of section 6230(a)</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6230">26 USC 6230 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall take effect as if included in the amendments made by section 402 of the Tax Equity and Fiscal Responsibility Act of 1982.</content> </subsection> </section> <section> <num value="1238">SEC. 1238.</num> <heading>DETERMINATION OF PENALTIES AT PARTNERSHIP LEVEL.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 6221 (relating to tax treatment determined at partnership level) is amended by striking “<quotedText>item</quotedText>” and inserting “<quotedText>item (and the applicability of any penalty, addition to tax, or additional amount which relates to an adjustment to a partnership item)</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>Subsection (f) of section 6226 is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>relates and</quotedText>” and inserting “<quotedText>relates,</quotedText>”, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by inserting before the period “, and the applicability of any penalty, addition to tax, or additional amount which relates to an adjustment to a partnership item”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Clause (i) of section 6230(a)(2)(A) is amended to read as follows:<page identifier="/us/stat/111/1027">111 STAT. 1027</page> <quotedContent> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>affected items which require partner level determinations (other than penalties, additions to tax, and additional amounts that relate to adjustments to partnership items), or”.</content></clause> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num><subparagraph class="inline"><num value="A">(A)</num> <content>Subparagraph (A) of section 6230(a)(3), as added by section 1237, is amended by inserting “<quotedText>(including any liability for any penalties, additions to tax, or additional amounts relating to such adjustment)</quotedText>” after “partnership item”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Subparagraph (B) of such section is amended by inserting “<quotedText>(and the applicability of any penalties, additions to tax, or additional amounts)</quotedText>” after “partnership items”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>Subparagraph (A) of section 6230(c)(5), as added by section 1237, is amended by inserting before the period “(including any liability for any penalties, additions to tax, or additional amounts relating to such adjustment)”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>Subparagraph (D) of section 6230(c)(5), as added by section 1237, is amended by inserting “<quotedText>(and the applicability of any penalties, additions to tax, or additional amounts)</quotedText>” after “partnership items”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>Paragraph (1) of section 6230(c) is amended by striking “<quotedText>or</quotedText>” at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting “<quotedText>, or</quotedText>”, and by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>the Secretary erroneously imposed any penalty, addition to tax, or additional amount which relates to an adjustment to a partnership item.”.</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>So much of subparagraph (A) of section 6230(c)(2) as precedes “shall be filed” is amended to read as follows: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Under paragraph (1) (a) or (c)</inline>.—</heading><content>Any claim under subparagraph (A) or (C) of paragraph (1)”.</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>Paragraph (4) of section 6230(c) is amended by adding at the end the following: “<quotedText>In addition, the determination under the final partnership administrative adjustment or under the decision of the court (whichever is appropriate) concerning the applicability of any penalty, addition to tax, or additional amount which relates to an adjustment to a partnership item shall also be conclusive. Notwithstanding the preceding sentence, the partner shall be allowed to assert any partner level defenses that may apply or to challenge the amount of the computational adjustment.</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6221">26 USC 6221 note</ref>.</p></sidenote> shall apply to partnership taxable years ending after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1239">SEC. 1239.</num> <heading>PROVISIONS RELATING TO COURT JURISDICTION, ETC.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Tax Court Jurisdiction To Enjoin Premature Assessments of Deficiencies Attributable to Partnership Items</inline>.—</heading><content>Subsection (b) of section 6225 is amended by striking “<quotedText>the proper court.</quotedText>” and inserting “<quotedText>the proper court, including the Tax Court. The Tax Court shall have no jurisdiction to enjoin any action or proceeding under this subsection unless a timely petition for a readjustment of the partnership items for the taxable year has been filed and then only in respect of the adjustments that are the subject of such petition.</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>Jurisdiction To Consider Statute of Limitations With Respect to Partners.—Paragraph (1) of section 6226(d) is amended by adding at the end the following new sentence:<page identifier="/us/stat/111/1028">111 STAT. 1028</page> <quotedContent> <p class="indent0 fontsize10">“Notwithstanding subparagraph (B), any person treated under subsection (c) as a party to an action shall be permitted to participate in such action (or file a readjustment petition under subsection (b) or paragraph (2) of this subsection) solely for the purpose of asserting that the period of limitations for assessing any tax attributable to partnership items has expired with respect to such person, and the court having jurisdiction of such action shall have jurisdiction to consider such assertion.”,</p> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Tax Court Jurisdiction To Determine Overpayments Attributable to Affected Items</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Paragraph (6) of section 6230(d) is amended by striking “<quotedText>(or an affected item)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Paragraph (3) of section 6512(b) is amended by adding at the end the following new sentence: <quotedContent> <p class="indent0 fontsize10">“In the case of a credit or refund relating to an affected item (within the meaning of section 6231(a)(5)), the preceding sentence shall be applied by substituting the periods under sections 6229 and 6230(a) for the periods under section 6511(b)(2), (c), and (d) ”,</p> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Venue on Appeal</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Paragraph (1) of section 7482(b) is amended by striking “<quotedText>or</quotedText>” at the end of subparagraph (D), by striking the period at the end of subparagraph (E) and inserting “<quotedText>, or</quotedText>”, and by inserting after subparagraph (E) the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <chapeau>in the case of a petition under section 6234(c)—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the legal residence of the petitioner if the petitioner is not a corporation, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the place or office applicable under subparagraph (B) if the petitioner is a corporation.”.</content></clause> </subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>The last sentence of section 7482(b)(1) is amended by striking “<quotedText>or 6228(a)</quotedText>” and inserting 6228(a), or 6234(c)”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Other Provisions</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Subsection (c) of section 7459 is amended by striking “<quotedText>or section 6228(a)</quotedText>” and inserting “<quotedText>, 6228(a), or 6234(c)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Subsection (o) of section 6501 is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>For declaratory judgment relating to treatment of items other than partnership items with respect to an oversheltered return, see section 6234”.</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Subsection (a) of section 7421, as amended by section 1222, is amended by inserting “<quotedText>6225(b),</quotedText>” after “6213(a),”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6225">26 USC 6225 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to partnership taxable years ending after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1240">SEC. 1240.</num> <heading>TREATMENT OF PREMATURE PETITIONS FILED BY NOTICE PARTNERS OR 5-PERCENT GROUPS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (b) of section 6226 (relating to judicial review of final partnership administrative adjustments) is amended by redesignating paragraph (5) as paragraph (6) and by inserting after paragraph (4) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Treatment of premature petitions</inline>.—</heading><chapeau>If—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>a petition for a readjustment of partnership items for the taxable year involved is filed by a notice partner (or a 5-percent group) during the 90-day period described in subsection (a), and<page identifier="/us/stat/111/1029">111 STAT. 1029</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>no action is brought under paragraph (1) during the 60-day period described therein with respect to such taxable year which is not dismissed,</content></subparagraph> <continuation class="indent0 fontsize10">such petition shall be treated for purposes of paragraph (1) as filed on the last day of such 60-day period.”.</continuation> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6226">26 USC 6226 note</ref>.</p></sidenote> shall apply to petitions filed after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1241">SEC. 1241.</num> <heading>BONDS IN CASE OF APPEALS FROM CERTAIN PROCEEDING.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Subsection (b) of section 7485 (relating to bonds to stay assessment of collection) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by inserting “<quotedText>penalties,</quotedText>” after “any interest,”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<quotedText>aggregate of such deficiencies</quotedText>” and inserting “<quotedText>aggregate liability of the parties to the action</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s7485">26 USC 7485 note</ref>.</p></sidenote> shall take effect as if included in the amendments made by section 402 of the Tax Equity and Fiscal Responsibility Act of 1982.</content> </subsection> </section> <section> <num value="1242">SEC. 1242.</num> <heading>SUSPENSION OF INTEREST WHERE DELAY IN COMPUTATIONAL ADJUSTMENT RESULTING FROM CERTAIN SETTLEMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (c) of section 6601 (relating to interest on underpayment, nonpayment, or extension of time for payment, of tax) is amended by adding at the end the following new sentence: “In the case of a settlement under section 6224(c) which results in the conversion of partnership items to nonpartnership items pursuant to section 6231(b)(1)(C), the preceding sentence shall apply to a computational adjustment resulting from such settlement in the same manner as if such adjustment were a deficiency and such settlement were a waiver referred to in the preceding sentence.”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6601">26 USC 6601 note</ref>.</p></sidenote> shall apply to adjustments with respect to partnership taxable years beginning after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1243">SEC. 1243.</num> <heading>SPECIAL RULES FOR ADMINISTRATIVE ADJUSTMENT REQUESTS WITH RESPECT TO BAD DEBTS OR WORTHLESS SECURITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Section 6227 (relating to administrative adjustment requests) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Requests With Respect to Bad Debts or Worthless Securities</inline>.—</heading><content>In the case of that portion of any request for an administrative adjustment which relates to the deductibility by the partnership under section 166 of a debt as a debt which became worthless, or under section 165(g) of a loss from worthlessness of a security, the period prescribed in subsection (a)(1) shall be 7 years from the last day for filing the partnership return for the year with respect to which such request is made (determined without regard to extensions).”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6227">26 USC 6227 note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendment made by subsection (a) note shall take effect as if included in the amendments made by section 402 of the Tax Equity and Fiscal Responsibility Act of 1982.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Treatment of requests filed before date of enactment</inline>.—</heading><chapeau>In the case of that portion of any request (filed before <page identifier="/us/stat/111/1030">111 STAT. 1030</page>the date of the enactment of this Act) for an administrative adjustment which relates to the deductibility of a debt as a debt which became worthless or the deductibility of a loss from the worthlessness of a security—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>paragraph (2) of section 6227(a) of the Internal Revenue Code of 1986 shall not apply,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>the period for filing a petition under section 6228 of the Internal Revenue Code of 1986 with respect to such request shall not expire before the date 6 months after the date of the enactment of this Act, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>such a petition may be filed without regard to whether there was a notice of the beginning of an administrative proceeding or a final partnership administrative adjustment.</content></subparagraph> </paragraph> </subsection> </section> </part> <part> <num value="III">PART III—</num><heading>PROVISION RELATING TO CLOSING OF PARTNERSHIP TAXABLE YEAR WITH RESPECT TO DECEASED PARTNER, ETC.</heading> <section> <num value="1246">SEC. 1246.</num> <heading>CLOSING OF PARTNERSHIP TAXABLE YEAR WITH RESPECT TO DECEASED PARTNER, ETC.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Subparagraph (A) of section 706(c)(2) (relating to disposition of entire interest) is amended to read as follows: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Disposition of entire interest</inline>.—</heading><content>The taxable year of a partnership shall close with respect to a partner whose entire interest in the partnership terminates (whether by reason of death, liquidation, or otherwise).”.</content></subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The paragraph heading for paragraph (2) of section 706(c) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Treatment of dispositions</inline>.—”.</heading></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s706">26 USC 706 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to partnership taxable years beginning after December 31, 1997.</content> </subsection> </section> </part> </subtitle> <subtitle> <num value="D">Subtitle D—</num><heading>Provisions Relating to Real Estate Investment Trusts</heading> <section> <num value="1261">SEC. 1261.</num> <heading>CLARIFICATION OF LIMITATION ON MAXIMUM NUMBER OF SHAREHOLDERS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Rules Relating to Determination of Ownership</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Failure to issue shareholder demand letter not to disqualify reit</inline>.—</heading><content>Section 857(a) (relating to requirements applicable to real estate investment trusts) is amended by striking paragraph (2) and by redesignating paragraph (3) as paragraph (2).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Shareholder demand letter requirement; penalty</inline>.—</heading><content>Section 857 (relating to taxation of real estate investment trusts and their beneficiaries) is amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Real Estate Investment Trusts To Ascertain Ownership</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Each real estate investment trust shall each taxable year comply with regulations prescribed by the <page identifier="/us/stat/111/1031">111 STAT. 1031</page>Secretary for the purposes of ascertaining the actual ownership of the outstanding shares, or certificates of beneficial interest, of such trust.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Failure to comply</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If a real estate investment trust fails to comply with the requirements of paragraph (1) for a taxable year, such trust shall pay (on notice and demand by the Secretary and in the same manner as tax) a penalty of $25,000.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Intentional disregard.—If any failure under paragraph (1) is due to intentional disregard of the requirement under paragraph (1), the penalty under subparagraph (A) shall be $50,000.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Failure to comply after notice</inline>.—</heading><content>The Secretary may require a real estate investment trust to take such actions as the Secretary determines appropriate to ascertain actual ownership if the trust fails to meet the requirements of paragraph (1). If the trust fails to take such actions, the trust shall pay (on notice and demand by the Secretary and in the same manner as tax) an additional penalty equal to the penalty determined under subparagraph (A) or (B), whichever is applicable.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Reasonable cause</inline>.—</heading><content>No penalty shall be imposed under this paragraph with respect to any failure if it is shown that such failure is due to reasonable cause and not to willful neglect.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Compliance With Closely Held Prohibition</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 856 (defining real estate investment trust) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="k">“(k)</num> <heading><inline class="smallCaps">Requirement That Entity Not Be Closely Held Treated as Met in Certain Cases</inline>.—</heading><chapeau>A corporation, trust, or association—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>which for a taxable year meets the requirements of section 857(f)(1), and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>which does not know, or exercising reasonable diligence would not have known, whether the entity failed to meet the requirement of subsection (a)(6),</content></paragraph> <continuation class="indent0 fontsize10">shall be treated as having met the requirement of subsection (a)(6) for the taxable year”.</continuation> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conforming amendment</inline>.—</heading><content>Paragraph (6) of section 856(a) is amended by inserting “<quotedText>subject to the provisions of subsection (k),</quotedText>” before “which is not”.</content></paragraph> </subsection> </section> <section> <num value="1252">SEC. 1252.</num> <heading>DE MINIMIS RULE FOR TENANT SERVICES INCOME.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Paragraph (2) of section 856(d) (defining rents from real property) is amended by striking subparagraph (C) and the last sentence and inserting: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>any impermissible tenant service income (as defined in paragraph (7)).”.</content></subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Impermissible Tenant Service Income</inline>.—</heading><content>Section 856(d) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Impermissible tenant service income</inline>.—</heading><chapeau>For purposes of paragraph (2)(C)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘impermissible tenant service income’ means, with respect to any real or personal <page identifier="/us/stat/111/1032">111 STAT. 1032</page>property, any amount received or accrued directly or indirectly by the real estate investment trust for—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>services furnished or rendered by the trust to the tenants of such property, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>managing or operating such property.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Disqualification of all amounts where more than de minimis amount</inline>.—</heading><content>If the amount described in subparagraph (A) with respect to a property for any taxable year exceeds 1 percent of all amounts received or accrued during such taxable year directly or indirectly by the real estate investment trust with respect to such property, the impermissible tenant service income of the trust with respect to the property shall include all such amounts.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Exceptions</inline>.—</heading><chapeau>For purposes of subparagraph (A)—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>services furnished or rendered, or management or operation provided, through an independent contractor from whom the trust itself does not derive or receive any income shall not be treated as furnished, rendered, or provided by the trust, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>there shall not be taken into account any amount which would be excluded from unrelated business taxable income under section 512(b)(3) if received by an organization described in section 511(a)(2).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Amount attributable to impermissible services</inline>.—</heading><content>For purposes of subparagraph (A), the amount treated as received for any service (or management or operation) shall not be less than 150 percent of the direct cost of the trust in furnishing or rendering the service (or providing the management or operation).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Coordination with limitations</inline>.—</heading><content>For purposes of paragraphs (2) and (3) of subsection (c), amounts described in subparagraph (A) shall be included in the gross income of the corporation, trust, or association.”.</content></subparagraph> </paragraph> </quotedContent> </content></subsection> </section> <section> <num value="1253">SEC. 1253.</num> <heading>ATTRIBUTION RULES APPLICABLE TO STOCK OWNERSHIP.</heading> <content>Section 856(d)(5) (relating to constructive ownership of stock) is amended by striking “<quotedText>except that</quotedText>” and all that follows and inserting “except that— <quotedContent> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>‘10 percent’ shall be substituted for ‘50 percent’ in subparagraph (C) of paragraphs (2) and (3) of section 318(a), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>section 318(a)(3)(A) shall be applied in the case of a partnership by taking into account only partners who own (directly or indirectly) 25 percent or more of the capital interest, or the profits interest, in the partnership.”.</content></subparagraph> </quotedContent> </content></section> <section> <num value="1254">SEC. 1254.</num> <heading>CREDIT FOR TAX PAID BY REIT ON RETAINED CAPITAL GAINS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Paragraph (3) of section 857(b) (relating to capital gains) is amended by redesignating subparagraph (D) as subparagraph (E) and by inserting after subparagraph (C) the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Treatment by shareholders of undistributed capital gains</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>Every shareholder of a real estate investment trust at the close of the trust’s taxable year shall include, in computing his long-term capital gains in his return for his taxable year in which the last day <page identifier="/us/stat/111/1033">111 STAT. 1033</page>of the trust’s taxable year falls, such amount as the trust shall designate in respect of such shares in a written notice mailed to its shareholders at any time prior to the expiration of 60 days after the close of its taxable year (or mailed to its shareholders or holders of beneficial interests with its annual report for the taxable year), but the amount so includible by any shareholder shall not exceed that part of the amount subjected to tax in subparagraph (A)(ii) which he would have received if all of such amount had been distributed as capital gain dividends by the trust to the holders of such shares at the close of its taxable year.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>For purposes of this title, every such shareholder shall be deemed to have paid, for his taxable year under clause (i), the tax imposed by subparagraph (A)(ii) on the amounts required by this subparagraph to be included in respect of such shares in computing his long-term capital gains for that year; and such shareholders shall be allowed credit or refund as the case may be, for the tax so deemed to have been paid by turn.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>The adjusted basis of such shares in the hands of the holder shall be increased with respect to the amounts required by this subparagraph to be included in computing his long-term capital gains, by the difference between the amount of such includible gains and the tax deemed paid by such shareholder in respect of such shares under clause (ii).</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>In the event of such designation, the tax imposed by subparagraph (A)(ii) shall be paid by the real estate investment trust within 30 days after the close of its taxable year.</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>The earnings and profits of such real estate investment trust, and the earnings and profits of any such shareholder which is a corporation, shall be appropriately adjusted in accordance with regulations prescribed by the Secretary.</content></clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <content>As used in this subparagraph, the terms ‘shares’ and ‘shareholders’ shall include beneficial interests and holders of beneficial interests, respectively”.</content></clause> </subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Clause (i) of section 857(b)(7)(A) is amended by striking “<quotedText>subparagraph (B)</quotedText>” and inserting “<quotedText>subparagraph (B) or (D)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Clause (iii) of section 852(b)(3)(D) is amended by striking “<quotedText>by 65 percent</quotedText>” and all that follows and inserting “<quotedText>by the difference between the amount of such includible gains and the tax deemed paid by such shareholder in respect of such shares under clause (ii).</quotedText>”.</content></paragraph> </subsection> </section> <section> <num value="1255">SEC. 1255.</num> <heading>REPEAL OF 30-PERCENT GROSS INCOME REQUIREMENT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><chapeau>Subsection (c) of section 856 (relating to limitations) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by adding “<quotedText>and</quotedText>” at the end of paragraph (3),</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking paragraphs (4) and (8), and<page identifier="/us/stat/111/1034">111 STAT. 1034</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by redesignating paragraphs (5), (6), and (7) as paragraphs (4), (5), and (6), respectively.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Subparagraph (G) of section 856(c)(5), as redesignated by subsection (a), is amended by striking “<quotedText>and such agreement shall be treated as a security for purposes of paragraph (4)(A)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Paragraph (5) of section 857(b) is amended by striking “<quotedText>section 856(c)(7)</quotedText>” and inserting “<quotedText>section 856(c)(6)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Subparagraph (C) of section 857(b)(6) is amended by striking “section 856(c)(6)(B)” and inserting “section 856(c)(5)(B)”.</content></paragraph> </subsection> </section> <section> <num value="1256">SEC. 1256.</num> <heading>MODIFICATION OF EARNINGS AND PROFITS RULES FOR DETERMINING WHETHER REIT HAS EARNINGS AND PROFITS FROM NON-REIT YEAR.</heading> <content>Subsection (d) of section 857 is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Distributions to meet requirements of subsection (a)(2)(B)</inline>.—</heading><chapeau>Any distribution which is made in order to comply with the requirements of subsection (a)(2)(B)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>shall be treated for purposes of this subsection and subsection (a)(2)(B) as made from the earliest accumulated earnings and profits (other than earnings and profits to which subsection (a)(2)(A) applies) rather than the most recently accumulated earnings and profits, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>to the extent treated under subparagraph (A) as made from accumulated earnings and profits, shall not be treated as a distribution for purposes of subsection (b)(2)(B).”.</content></subparagraph> </paragraph> </quotedContent> </content></section> <section> <num value="1257">SEC. 1257.</num> <heading>TREATMENT OF FORECLOSURE PROPERTY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Grace Periods</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Initial period</inline>.—</heading><content>Paragraph (2) of section 856(e) (relating to special rules for foreclosure property) is amended by striking “<quotedText>on the date which is 2 years after the date the trust acquired such property</quotedText>” and inserting “<quotedText>as of the close of the 3d taxable year following the taxable year in which the trust acquired such property</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Extension</inline>.—</heading><chapeau>Paragraph (3) of section 856(e) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>or more extensions</quotedText>” and inserting “<quotedText>extension</quotedText>”, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking the last sentence and inserting: “Any such extension shall not extend the grace period beyond the close of the 3d taxable year following the last taxable year in the period under paragraph (2).”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Revocation of Election</inline>.—</heading><content>Paragraph (5) of section 856(e) is amended by striking the last sentence and inserting: “A real estate investment trust may revoke any such election for a taxable year by filing the revocation (in the manner provided by the Secretary) on or before the due date (including any extension of time) for filing its return of tax under this chapter for the taxable year. If a trust revokes an election for any property, no election may be made by the trust under this paragraph with respect to the property for any subsequent taxable year.”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Certain Activities Not To Disqualify Property</inline>.—</heading><content>Paragraph (4) of section 856(e) is amended by adding at the end the following new flush sentence:<page identifier="/us/stat/111/1035">111 STAT. 1035</page> <quotedContent> <p class="indent0 fontsize10">“For purposes of subparagraph (C), property shall not be treated as used in a trade or business by reason of any activities of the real estate investment trust with respect to such property to the extent that such activities would not result in amounts received or accrued, directly or indirectly, with respect to such property being treated as other than rents from real property.”.</p> </quotedContent> </content></subsection> </section> <section> <num value="1258">SEC. 1258.</num> <heading>PAYMENTS UNDER HEDGING INSTRUMENTS.</heading> <content>Section 856(c)(5)(G) (relating to treatment of certain interest rate agreements), as redesignated by section 1255, is amended to read as follows: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <heading><inline class="smallCaps">Treatment of certain hedging instruments</inline>.—</heading><chapeau>Except to the extent provided by regulations, any—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>payment to a real estate investment trust under an interest rate swap or cap agreement, option, futures contract, forward rate agreement, or any similar financial instrument, entered into by the trust in a transaction to reduce the interest rate risks with respect to any indebtedness incurred or to be incurred by the trust to acquire or carry real estate assets, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>gain from the sale or other disposition of any such investment,</content></clause> <continuation class="indent0 fontsize10">shall be treated as income qualifying under paragraph (2).”.</continuation> </subparagraph> </quotedContent> </content></section> <section> <num value="1259">SEC. 1259.</num> <heading>EXCESS NONCASH INCOME.</heading> <chapeau>Section 857(e)(2) (relating to determination of amount of excess noncash income) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking subparagraph (B),</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking the period at the end of subparagraph (C) and inserting a comma,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by redesignating subparagraph (C) (as amended by paragraph (2)) as subparagraph (B), and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>by adding at the end the following new subparagraphs: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <chapeau>the amount (if any) by which—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the amounts includible in gross income with respect to instruments to which section 860E(a) or 1272 applies, exceed</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the amount of money and the fair market value of other property received during the taxable year under such instruments, and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>amounts includible in income by reason of cancellation of indebtedness.”.</content></subparagraph> </quotedContent> </content></paragraph> </section> <section> <num value="1260">SEC. 1260.</num> <heading>PROHIBITED TRANSACTION SAFE HARBOR.</heading> <content>Clause (iii) of section 857(b)(6)(C) (relating to certain sales not to constitute prohibited transactions) is amended by striking “<quotedText>(other than foreclosure property)</quotedText>” in subclauses (I) and (II) and inserting “<quotedText>(other than sales of foreclosure property or sales to which section 1033 applies)</quotedText>”.</content> </section> <section> <num value="1261">SEC. 1261.</num> <heading>SHARED APPRECIATION MORTGAGES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Bankruptcy Safe Harbor</inline>.—</heading><content>Section 856(j) (relating to treatment of shared appreciation mortgages) is amended by redesignating paragraph (4) as paragraph (5) and by inserting after paragraph (3) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Coordination with 4-year holding period</inline>.—<page identifier="/us/stat/111/1036">111 STAT. 1036</page></heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of section 857(b)(6)(C), if a real estate investment trust is treated as having sold secured property under paragraph (3)(A), the trust shall be treated as having held such property for at least 4 years if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the secured property is sold or otherwise disposed of pursuant to a case under title 11 of the United States Code,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the seller is under the jurisdiction of the court in such case, and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>the disposition is required by the court or is pursuant to a plan approved by the court.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Exception</inline>.—</heading><chapeau>Subparagraph (A) shall not apply if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the secured property was acquired by the seller with the intent to evict or foreclose, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the trust knew or had reason to know that default on the obligation described in paragraph (5)(A) would occur.”.</content></clause> </subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Clarification of Definition of Shared Appreciation Provision</inline>.—</heading><content>Clause (ii) of section 856(j)(5)(A) is amended by inserting before the period “or appreciation in value as of any specified date”.</content> </subsection> </section> <section> <num value="1262">SEC. 1262.</num> <heading>WHOLLY OWNED SUBSIDIARIES.</heading> <content>Section 856(i)(2) (defining qualified REIT subsidiary) is amended by striking “<quotedText>at all times during the period such corporation was in existence</quotedText>”.</content> </section> <section> <num value="1263">SEC. 1263.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s852">26 USC 852 note</ref>.</p></sidenote> <heading>EFFECTIVE DATE.</heading> <content>The amendments made by this part shall apply to taxable years beginning after the date of the enactment of this Act.</content> </section> </subtitle> <subtitle> <num value="E">Subtitle E—</num><heading>Provisions Relating to Regulated Investment Companies</heading> <section> <num value="1271">SEC. 1271.</num> <heading>REPEAL OF 30-PERCENT GROSS INCOME LIMITATION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Subsection (b) of section 851 (relating to limitations) is amended by striking paragraph (3), by adding “<quotedText>and</quotedText>” at the end of paragraph (2), and by redesignating paragraph (4) as paragraph (3).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Technical Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>The material following paragraph (3) of section 851(b) (as redesignated by subsection (a)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking out “paragraphs (2) and (3)” and inserting “<quotedText>paragraph (2)</quotedText>”, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking out the last sentence thereof.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Subsection (c) of section 851 is amended by striking “<quotedText>subsection (b)(4)</quotedText>” each place it appears (including the heading) and inserting “<quotedText>subsection (b)(3)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Subsection (d) of section 851 is amended by striking “<quotedText>subsections (b)(4)</quotedText>” and inserting “<quotedText>subsections (b)(3)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>Paragraph (1) of section 851(e) is amended by striking “<quotedText>subsection (b)(4)</quotedText>” and inserting “<quotedText>subsection (b)(3)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>Paragraph (4) of section 851(e) is amended by striking “<quotedText>subsections (b)(4)</quotedText>” and inserting “<quotedText>subsections (b)(3)</quotedText>”.<page identifier="/us/stat/111/1037">111 STAT. 1037</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>Section 851 is amended by striking subsection (g) and redesignating subsection (h) as subsection (g).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <content>Subsection (g) of section 851 (as redesignated by paragraph (6)) is amended by striking paragraph (3).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8)</num> <chapeau>Section 817(h)(2) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>851(b)(4)</quotedText>” in subparagraph (A) and inserting “<quotedText>851(b)(3)</quotedText>”, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking “<quotedText>851(b)(4)(A)(i)</quotedText>” in subparagraph (B) and inserting “<quotedText>851(b)(3)(A)(i)</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9)</num> <content>Section 1092(f)(2) is amended by striking “<quotedText>Except for purposes of section 851(b)(3), the</quotedText>” and inserting “<quotedText>The</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s817">26 USC 817 note</ref>.</p></sidenote> shall apply to taxable years beginning after the date of the enactment of this Act.</content> </subsection> </section> </subtitle> <subtitle> <num value="F">Subtitle F—</num><heading>Taxpayer Protections</heading> <section> <num value="1281">SEC. 1281.</num> <heading>REASONABLE CAUSE EXCEPTION FOR CERTAIN PENALTIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Information on Deductible Employee Contributions</inline>.—</heading><content>Subsection (g) of section 6652 (relating to information required in connection with deductible employee contributions) is amended by adding at the end the following new sentence: “No penalty shall be imposed under this subsection on any failure which is shown to be due to reasonable cause and not willful neglect.”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Reports on Status as Qualified Small Business</inline>.—</heading><content>Subsection (k) of section 6652 (relating to failure to make reports required under section 1202) is amended by adding at the end the following new sentence: “No penalty shall be imposed under this subsection on any failure which is shown to be due to reasonable cause and not willful neglect.”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Returns of Personal Holding Company Tax by Foreign Corporations</inline>.—</heading><content>Section 6683 (relating to failure of foreign corporation to file return of personal holding company tax) is amended by adding at the encl the following new sentence: “No penalty shall be imposed under this section on any failure which is shown to be due to reasonable cause and not willful neglect.”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Failure To Make Required Payments</inline>.—</heading><content>Subparagraph (A) of section 7519(f)(4) is amended by adding at the end the following new sentence: “No penalty shall be imposed under this subparagraph on any failure which is shown to be due to reasonable cause and not willful neglect.”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6652">26 USC 6652 note</ref>.</p></sidenote> shall apply to taxable years beginning after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1282">SEC. 1282.</num> <heading>CLARIFICATION OF PERIOD FOR FILING CLAIMS FOR REFUNDS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Paragraph (3) of section 6512(b) (relating to overpayment determined by Tax Court) is amended by adding at the end the following flush sentence: <quotedContent> <p class="indent0 fontsize10">“In a case described in subparagraph (B) where the date of the mailing of the notice of deficiency is during the third year after the due date (with extensions) for filing the return of tax and no return was filed before such date, the applicable period under subsections (a) and (b)(2) of section 6511 shall be 3 years.”.<page identifier="/us/stat/111/1038">111 STAT. 1038</page></p> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6512">26 USC 6512 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall apply to claims for credit or refund for taxable years ending after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1283">SEC. 1283.</num> <heading>REPEAL OF AUTHORITY TO DISCLOSE WHETHER PROSPECTIVE JUROR HAS BEEN AUDITED.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (h) of section 6103 (relating to disclosure to certain Federal officers and employees for purposes of tax administration, etc.) is amended by striking paragraph (5) and by redesignating paragraph (6) as paragraph (5).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>Paragraph (4) of section 6103(p) is amended by striking “<quotedText>(h)(6)</quotedText>” each place it appears and inserting “<quotedText>(h)(5)</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6103">26 USC 6103 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to judicial proceedings commenced after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1284">SEC. 1284.</num> <heading>CLARIFICATION OF STATUTE OF LIMITATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (a) of section 6501 (relating to limitations on assessment and collection) is amended by adding at the end thereof the following new sentence: “For purposes of this chapter, the term ‘return’ means the return required to be filed by the taxpayer (and does not include a return of any person from whom the taxpayer has received an item of income, gain, loss, deduction, or credit).”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6501">26 USC 6501 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1285">SEC. 1285.</num> <heading>AWARDING OF ADMINISTRATIVE COSTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Right to Appeal Tax Court Decision</inline>.—</heading><content>Subsection (f) of section 7430 (relating to right of appeal) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Appeal of tax court decision</inline>.—</heading><content>An order of the Tax Court disposing of a petition under paragraph (2) shall be reviewable in the same manner as a decision of the Tax Court, but only with respect to the matters determined in such order.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Period for Applying to IRS for Costs</inline>.—</heading><content>Subsection (b) of section 7430 (relating to limitations) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Period for applying to irs for administrative costs</inline>.—</heading><content>An award may be made under subsection (a) by the Internal Revenue Service for reasonable administrative costs only if the prevailing party files an application with the Internal Revenue Service for such costs before the 91st day after the date on which the final decision of the Internal Revenue Service as to the determination of the tax, interest, or penalty is mailed to such party.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Period for Petitioning of Tax Court for Review of Denial of Costs</inline>.—</heading><chapeau>Paragraph (2) of section 7430(f) (relating to right of appeal) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>appeal to</quotedText>” and inserting “<quotedText>the filing of a petition for review with</quotedText>”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Notice.</p></sidenote> <content>by adding at the end the following new sentence: “If the Secretary sends by certified or registered mail a notice of such decision to the petitioner, no proceeding in the Tax Court may be initiated under this paragraph unless such petition is filed before the 91st day after the date of such mailing.”.<page identifier="/us/stat/111/1039">111 STAT. 1039</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to civil actions or proceedings commenced after the date of the enactment of this Act.</content> </subsection> </section> </subtitle> <num value="XIII">TITLE XIII—</num><heading>SIMPLIFICATION PROVISIONS RELATING TO ESTATE AND GIFT TAXES</heading> <section> <num value="1301">SEC. 1301.</num> <heading>GIFTS TO CHARITIES EXEMPT FROM GIFT TAX FILING REQUIREMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 6019 is amended by striking “<quotedText>or</quotedText>” at the end of paragraph (1), by adding “<quotedText>or</quotedText>” at the end of paragraph (2), and by inserting after paragraph (2) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <chapeau>a transfer with respect to which a deduction is allowed under section 2522 but only if—</chapeau> <subparagraph class="indent2 fontsize10"><clause class="inline"><num value="A">“(A)</num><num value="i">(i)</num> <content>such transfer is of the donor’s entire interest in the property transferred, and</content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii)</num> <content>no other interest in such property is or has been transferred (for less than adequate and full consideration in money or money’s worth) from the donor to a person, or for a use, not described in subsection (a) or (b) of section 2522, or</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>such transfer is described in section 2522(d),”.</content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6019">26 USC 6019 note</ref>.</p></sidenote> shall apply to gifts made after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1302">SEC. 1302.</num> <heading>CLARIFICATION OF WAIVER OF CERTAIN RIGHTS OF RECOVERY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Amendment to Section 2207A</inline>.—</heading><content>Paragraph (2) of section 2207A( a) (relating to right of recovery in the case of certain marital deduction property) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Decedent may otherwise direct</inline>.—</heading><content>Paragraph (1) shall not apply with respect to any property to the extent that the decedent in his will (or a revocable trust) specifically indicates an intent to waive any right of recovery under this subchapter with respect to such property.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Amendment to Section 2207B</inline>.—</heading><content>Paragraph (2) of section 2207B(a) (relating to right of recovery where decedent retained interest) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Decedent may otherwise direct</inline>.—</heading><content>Paragraph (1) shall not apply with respect to any property to the extent that the decedent in his will (or a revocable trust) specifically indicates an intent to waive any right of recovery under this subchapter with respect to such property.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2207A">26 USC 2207A note</ref>.</p></sidenote> shall apply with respect to the estates of decedents dying after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1303">SEC. 1303.</num> <heading>TRANSITIONAL RULE UNDER SECTION 2056A.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2056A">26 USC 2056A note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>In the case of any trust created under an instrument executed before the date of the enactment of the Revenue Reconciliation Act of 1990, such trust shall be treated as meeting the requirements of paragraph (1) of section 2056A(a) <page identifier="/us/stat/111/1040">111 STAT. 1040</page>of the Internal Revenue Code of 1986 if the trust instrument requires that all trustees of the trust be individual citizens of the United States or domestic corporations.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The provisions of subsection (a) shall take effect as if included in the provisions of section 11702(g) of the Revenue Reconciliation Act of 1990.</content> </subsection> </section> <section> <num value="1304">SEC. 1304.</num> <heading>TREATMENT FOR ESTATE TAX PURPOSES OF SHORT-TERM OBLIGATIONS HELD BY NONRESIDENT ALIENS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (b) of section 2105 is amended by striking “<quotedText>and</quotedText>” at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting and”, and by inserting after paragraph (3) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>obligations which would be original issue discount obligations as defined in section 871(g)(1) but for subparagraph (B)(i) thereof, if any interest thereon (were such interest received by the decedent at the time of his death) would not be effectively connected with the conduct of a trade or business within the United States.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2105">26 USC 2105 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section shall apply to estates of decedents dying after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1305">SEC. 1305.</num> <heading>CERTAIN REVOCABLE TRUSTS TREATED AS PART OF ESTATE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subpart A of part I of subchapter J (relating to estates, trusts, beneficiaries, and decedents) is amended by adding at the end the following new section: <quotedContent> <section> <num value="646">“SEC. 646.</num> <heading>CERTAIN REVOCABLE TRUSTS TREATED AS PART OF ESTATE.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>For purposes of this subtitle, if both the executor (if any) of an estate and the trustee of a qualified revocable trust elect the treatment provided in this section, such trust shall be treated and taxed as part of such estate (and not as a separate trust) for all taxable years of the estate ending after the date of the decedent’s death and before the applicable date.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of subsection (a)—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>Qualified revocable trust.—The term ‘qualified revocable trust’ means any trust (or portion thereof) which was treated under section 676 as owned by the decedent of the estate referred to in subsection (a) by reason of a power in the grantor (determined without regard to section 672(e)).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Applicable date</inline>.—</heading><chapeau>The term ‘applicable date’ means—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>if no return of tax imposed by chapter 11 is required to be filed, the date which is 2 years after the date of the decedent’s death, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>if such a return is required to be filed, the date which is 6 months after the date of the final determination of the liability for tax imposed by chapter 11.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Election</inline>.—</heading><content>The election under subsection (a) shall be made not later than the time prescribed for filing the return of tax imposed by this chapter for the first taxable year of the estate (determined with regard to extensions) and, once made, shall be irrevocable.”.</content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Comparable Treatment Under Generation-Skipping Tax</inline>.—</heading><content>Paragraph (1) of section 2652(b) is amended by adding at <page identifier="/us/stat/111/1041">111 STAT. 1041</page>the end the following new sentence: “Such term shall not include any trust during any period the trust is treated as part of an estate under section 646.”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections for such subpart A is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 646.</designator> <label>Certain revocable trusts treated as part of estate.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t46/s646">26 USC 646 note</ref>.</p></sidenote> shall apply with respect to estates of decedents dying after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1306">SEC. 1306.</num> <heading>DISTRIBUTIONS DURING FIRST 66 DAYS OF TAXABLE YEAR OF ESTATE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (b) of section 663 (relating to distributions in first 65 days of taxable year) is amended by inserting “<quotedText>an estate or</quotedText>” before “a trust” each place it appears.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>Paragraph (2) of section 663(b) is amended by striking “<quotedText>the fiduciary of such trust</quotedText>” and inserting “<quotedText>the executor of such estate or the fiduciary of such trust (as the case may be)</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s663">26 USC 663 note</ref>.</p></sidenote> shall apply to taxable years beginning after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1307">SEC. 1307.</num> <heading>SEPARATE SHARE RULES AVAILABLE TO ESTATES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Subsection (c) of section 663 (relating to separate shares treated as separate trusts) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by inserting before the last sentence the following new sentence: “Rules similar to the rules of the preceding provisions of this subsection shall apply to treat substantially separate and independent shares of different beneficiaries in an estate having more than 1 beneficiary as separate estates”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting “<quotedText>or estates</quotedText>” after “trusts” in the last sentence.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>The subsection heading of section 663(c) is amended by inserting “<quotedText><inline class="smallCaps">Estates or</inline></quotedText>” before “<inline class="smallCaps">Trusts</inline>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s663">26 USC 663 note</ref>.</p></sidenote> shall apply to estates of decedents dying after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1308">SEC. 1308.</num> <heading>EXECUTOR OF ESTATE AND BENEFICIARIES TREATED AS RELATED PERSONS FOR DISALLOWANCE OF LOSSES, ETC.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Disallowance of Losses</inline>.—</heading><content>Subsection (b) of section 267 (relating to losses, expenses, and interest with respect to transactions between related taxpayers) is amended by striking “<quotedText>or</quotedText>” at the end of paragraph (11), by striking the period at the end of paragraph (12) and inserting or”, and by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="13">“(13)</num> <content>Except in the case of a sale or exchange in satisfaction of a pecuniary bequest, an executor of an estate and a beneficiary of such estate.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Ordinary Income From Gain From Sale of Depreciable Property</inline>.—</heading><content>Subsection (b) of section 1239 is amended by striking the period at the end of paragraph (2) and inserting “<quotedText>, and</quotedText>” and by adding at the end the following new paragraph:<page identifier="/us/stat/111/1042">111 STAT. 1042</page> <quotedContent> <num value="3">“(3)</num> <content>except in the case of a sale or exchange in satisfaction of a pecuniary bequest, an executor of an estate and a beneficiary of such estate.”.</content> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s267">26 USC 267 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1309">SEC. 1309.</num> <heading>TREATMENT OF FUNERAL TRUSTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subpart F of part I of subchapter J of chapter 1 is amended by adding at the end the following new section: <quotedContent> <section> <num value="685">“SEC. 685.</num> <heading>TREATMENT OF FUNERAL TRUSTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>In the case of a qualified funeral trust—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>subparts B, C, D, and E shall not apply, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>no deduction shall be allowed by section 642(b).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Qualified Funeral Trust</inline>.—</heading><chapeau>For purposes of this subsection, the term ‘qualified funeral trust’ means any trust (other than a foreign trust) if—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the trust arises as a result of a contract with a person engaged in the trade or business of providing funeral or burial services or property necessary to provide such services,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the sole purpose of the trust is to hold, invest, and reinvest funds in the trust and to use such funds solely to make payments for such services or property for the benefit of the beneficiaries of the trust,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>the only beneficiaries of such trust are individuals with respect to whom such services or property are to be provided at their death under contracts described in paragraph (1),</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>the only contributions to the trust are contributions by or for the benefit of such beneficiaries,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>the trustee elects the application of this subsection, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>the trust would (but for the election described in paragraph (5)) be treated as owned under subpart E by the purchasers of the contracts described in paragraph (1).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Dollar Limitation on Contributions</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The term ‘qualified funeral trust’ shall not include any trust which accepts aggregate contributions by or for the benefit of an individual in excess of $7,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Related trusts</inline>.—</heading><chapeau>For purposes of paragraph (1), all trusts having trustees which are related persons shall be treated as 1 trust. For purposes of the preceding sentence, persons are related if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the relationship between such persons is described in section 267 or 707(b),</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>such persons are treated as a single employer under subsection (a) or (b) of section 52, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>the Secretary determines that treating such persons as related is necessary to prevent avoidance of the purposes of this section.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Inflation adjustment</inline>.—</heading><chapeau>In the case of any contract referred to in subsection (b)(1) which is entered into during any calendar year after 1998, the dollar amount referred to paragraph (1) shall be increased by an amount equal to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>such dollar amount, multiplied by<page identifier="/us/stat/111/1043">111 STAT. 1043</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the cost-of-living adjustment determined under section 1(f)(3) for such calendar year, by substituting ‘calendar year 1997’ for ‘calendar year 1992’ in subparagraph (B) thereof.</content></subparagraph> <continuation class="indent0 fontsize10">If any dollar amount after being increased under the preceding sentence is not a multiple of $100, such dollar amount shall be rounded to the nearest multiple of $100.</continuation> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Application of Rate Schedule</inline>.—</heading><content>Section 1(e) shall be applied to each qualified funeral trust by treating each beneficiary’s interest in each such trust as a separate trust.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Treatment of Amounts Refunded to Purchaser on Cancellation</inline>.—</heading><content>No gain or loss shall be recognized to a purchaser of a contract described in subsection (b)(1) by reason of any payment from such trust to such purchaser by reason of cancellation of such contract. If any payment referred to in the preceding sentence consists of property other than money, the basis of such property in the hands of such purchaser shall be the same as the trust’s basis in such property immediately before the payment.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Simplified Reporting</inline>.—</heading><content>The Secretary may prescribe rules for simplified reporting of all trusts having a single trustee.”.</content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections for subpart F of part I of subchapter J of chapter 1 is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 685.</designator> <label>Treatment of funeral trusts.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s685">26 USC 685 note</ref>.</p></sidenote> shall apply to taxable years ending after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1310">SEC. 1310.</num> <heading>ADJUSTMENTS FOR GIFTS WITHIN 3 YEARS OF DECEDENTS DEATH.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Section 2035 is amended to read as follows: <quotedContent> <section> <num value="2035">“SEC. 2035.</num> <heading>ADJUSTMENTS FOR CERTAIN GIFTS MADE WITHIN 3 YEARS OF DECEDENTS DEATH.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Inclusion of Certain Property in Gross Estate</inline>.—</heading><chapeau>If—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the decedent made a transfer (by trust or otherwise) of an interest in any property, or relinquished a power with respect to any property, during the 3-year period ending on the date of the decedent’s death, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the value of such property (or an interest therein) would have been included in the decedent’s gross estate under section 2036, 2037, 2038, or 2042 if such transferred interest or relinquished power had been retained by the decedent on the date of his death,</content></paragraph> <continuation class="indent0 fontsize10">the value of the gross estate shall include the value of any property (or interest therein) which would have been so included.</continuation> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Inclusion of Gift Tax on Gifts Made During 3 Years Before Decedent’s Death</inline>.—</heading><content>The amount of the gross estate (determined without regard to this subsection) shall be increased by the amount of any tax paid under chapter 12 by the decedent or his estate on any girt made by the decedent or his spouse during the 3-year period ending on the date of the decedent’s death.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Other Rules Relating to Transfers Within 3 Years of Death</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of—<page identifier="/us/stat/111/1044">111 STAT. 1044</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>section 303(b) (relating to distributions in redemption of stock to pay death taxes),</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>section 2032A (relating to special valuation of certain farms, etc., real property), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>subchapter C of chapter 64 (relating to lien for taxes),</content></subparagraph> <continuation class="indent0 fontsize10">the value of the gross estate shall include the value of all property to the extent of any interest therein of which the decedent has at any time made a transfer, by trust or otherwise, during the 3-year period ending on the date of the decedent’s death.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Coordination with section 6166</inline>.—</heading><content>An estate shall be treated as meeting the 35 percent of adjusted gross estate requirement of section 6166(a)(1) only if the estate meets such requirement both with and without the application of paragraph (1).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>Marital and small transfers.—Paragraph (1) shall not apply to any transfer (other than a transfer with respect to a life insurance policy) made during a calendar year to any donee if the decedent was not required by section 6019 (other than by reason of section 6019(2)) to file any gift tax return for such year with respect to transfers to such donee.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Exception</inline>.—</heading><content>Subsection (a) shall not apply to any bona fide sale for an adequate and full consideration in money or money’s worth.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Treatment of Certain Transfers From Revocable Trusts</inline>.—</heading><content>For purposes of this section and section 2038, any transfer from any portion of a trust during any period that such portion was treated under section 676 as owned by the decedent by reason of a power in the grantor (determined without regard to section 672(e)) shall be treated as a transfer made directly by the decedent.”.</content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections for part III of subchapter A of chapter 11 is amended by striking “<quotedText>gifts</quotedText>” in the item relating to section 2035 and inserting “<quotedText>certain gifts</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2035">26 USC 2035 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to the estates of decedents dying after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1311">SEC. 1311.</num> <heading>CLARIFICATION OF TREATMENT OF SURVIVOR ANNUITIES UNDER QUALIFIED TERMINABLE INTEREST RULES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subparagraph (C) of section 2056(b)(7) is amended by inserting “<quotedText>(or, in the case of an interest in an annuity arising under the community property laws of a State, included in the gross estate of the decedent under section 2033)</quotedText>” after “section 2039”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2056">26 USC 2056 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section shall apply to estates of decedents dying after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1312">SEC. 1312.</num> <heading>TREATMENT UNDER QUALIFIED DOMESTIC TRUST RULES OF FORMS OF OWNERSHIP WHICH ARE NOT TRUSTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (c) of section 2056A (defining qualified domestic trust) is amended by adding at the end the following new paragraph: <quotedContent> <num value="3">“(3)</num> <heading><inline class="smallCaps">Trust</inline>.—</heading><content>To the extent provided in regulations prescribed by the Secretary, the term trust’ includes other arrangements which have substantially the same effect as a trust.”.<page identifier="/us/stat/111/1045">111 STAT. 1045</page></content> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2056A">26 USC 2056A note</ref>.</p></sidenote> shall apply to estates of decedents dying after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1313">SEC. 1313.</num> <heading>OPPORTUNITY TO CORRECT CERTAIN FAILURES UNDER SECTION 2032A.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Paragraph (3) of section 2032A(d) (relating to modification of election and agreement to be permitted) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Modification of election and agreement to be permitted</inline>.—</heading><chapeau><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote>The Secretary shall prescribe procedures which provide that in any case in which the executor makes an election under paragraph (1) (and submits the agreement referred to in paragraph (2)) within the time prescribed therefor, but—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the notice of election, as filed, does not contain all required information, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>signatures of 1 or more persons required to enter into the agreement described in paragraph (2) are not included on the agreement as filed, or the agreement does not contain all required information, the executor will have a reasonable period of time (not exceeding 90 days) after notification of such failures to provide such information or signatures.”.</content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a)<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2032A">26 USC 2032A note</ref>.</p></sidenote> shall apply to the estates of decedents dying after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1314">SEC. 1314.</num> <heading>AUTHORITY TO WAIVE REQUIREMENT OF UNITED STATES TRUSTEE FOR QUALIFIED DOMESTIC TRUSTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subparagraph (A) of section 2056A(a)(1) is amended by inserting “<quotedText>except as provided in regulations prescribed by the Secretary,</quotedText>” before “requires”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2056A">26 USC 2056A note</ref>.</p></sidenote> shall apply to estates of decedents dying after the date of the enactment of this Act.</content> </subsection> </section> <num value="XIV">TITLE XIV—</num><heading>SIMPLIFICATION PROVISIONS RELATING TO EXCISE TAXES, TAX-EXEMPT BONDS, AND OTHER MATTERS</heading> <subtitle> <num value="A">Subtitle A—</num><heading>Excise Tax Simplification</heading> <part> <num value="I">PART I—</num><heading>EXCISE TAXES ON HEAVY TRUCKS AND LUXURY CARS</heading> <section> <num value="1401">SEC. 1401.</num> <heading>INCREASE IN DE MINIMIS LIMIT FOR AFTER-MARKET ALTERATIONS FOR HEAVY TRUCKS AND LUXURY CARS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Sections 4003(a)(3)(C) and 4051(b)(2)(B) (relating to exceptions) are each amended by striking “<quotedText>$200</quotedText>” and inserting “<quotedText>$1,000</quotedText>”.<page identifier="/us/stat/111/1046">111 STAT. 1046</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4003">26 USC 4003 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by subsection (a) shall apply to installations on vehicles sold after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1402">SEC. 1402.</num> <heading>CREDIT FOR TIRE TAX IN LIEU OF EXCLUSION OF VALUE OF TIRES IN COMPUTING PRICE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (e) of section 4051 is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Credit Against Tax for Tire Tax</inline>.—</heading><chapeau>If—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>tires are sold on or in connection with the sale of any article, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>tax is imposed by this subchapter on the sale of such tires,</content></paragraph> <continuation class="indent0 fontsize10">there shall be allowed as a credit against the tax imposed by this subchapter an amount equal to the tax (if any) imposed by section 4071 on such tires.”.</continuation> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>Subparagraph (B) of section 4052(b)(1) is amended by striking clause (iii), by adding “<quotedText>and</quotedText>” at the end of clause (ii), and by redesignating clause (iv) as clause (iii).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4051">26 USC 4051 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall take effect on January 1, 1998.</content> </subsection> </section> </part> <part> <num value="II">PART II—</num><heading>PROVISIONS RELATED TO DISTILLED SPIRITS, WINES, AND BEER</heading> <section> <num value="1411">SEC. 1411.</num> <heading>CREDIT OR REFUND FOR IMPORTED BOTTLED DISTILLED SPIRITS RETURNED TO DISTILLED SPIRITS PLANT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 5008(c)(1) (relating to distilled spirits returned to bonded premises) is amended by striking “<quotedText>withdrawn from bonded premises on payment or determination of tax</quotedText>” and inserting “<quotedText>on which tax has been determined or paid</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s5008">26 USC 5008 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall take effect on the 1st day of the 1st calendar quarter that begins at least 180 days after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1412">SEC. 1412.</num> <heading>AUTHORITY TO CANCEL OR CREDIT EXPORT BONDS WITHOUT SUBMISSION OF RECORDS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 5175(c) (relating to cancellation of credit of export bonds) is amended by striking “on the submission of’ and all that follows and inserting “<quotedText>if there is such proof of exportation as the Secretary may by regulations require.</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s5175">26 USC 5175 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall take effect on the 1st day of the 1st calendar quarter that begins at least 180 days after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1413">SEC. 1413.</num> <heading>REPEAL OF REQUIRED MAINTENANCE OF RECORDS ON PREMISES OF DISTILLED SPIRITS PLANT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 5207(c) (relating to preservation and inspection) is amended by striking “<quotedText>shall be kept on the premises where the operations covered by the record are carried on and</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s5207">26 USC 5207 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall take effect on the 1st day of the 1st calendar quarter that begins at least 180 days after the date of the enactment of this Act.<page identifier="/us/stat/111/1047">111 STAT. 1047</page></content> </subsection> </section> <section> <num value="1414">SEC. 1414.</num> <heading>FERMENTED MATERIAL FROM ANY BREWERY MAY BE RECEIVED AT A DISTILLED SPIRITS PLANT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 5222(b)(2) (relating to receipt) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>beer conveyed without payment of tax from brewery premises, beer which has been lawfully removed from brewery premises upon determination of tax, or”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Clarification of Authority To Permit Removal of Beer Without Payment of Tax for Use as Distilling Material</inline>.—</heading><content>Section 5053 (relating to exemptions) is amended by redesignating subsection (0 as subsection (i) and by inserting after subsection (e) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Removal for Use as Distilling Material</inline>.—</heading><content>Subject to such regulations as the Secretary may prescribe, beer may be removed from a brewery without payment of tax to any distilled spirits plant for use as distilling material”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Clarification of Refund and Credit of Tax</inline>.—</heading><chapeau>Section 5056 (relating to refund and credit of tax, or relief from liability) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Beer Received at a Distilled Spirits Plant</inline>.—</heading><content>Any tax paid by any brewer on beer produced in the United States may be refunded or credited to the brewer, without interest, or if the tax has not been paid, the brewer may be relieved of liability therefor, under regulations as the Secretary may prescribe, if such beer is received on the bonded premises of a distilled spirits plant pursuant to the provisions of section 5222(b)(2), for use in the production of distilled spirits.”, and</content> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<quotedText>or rendering unmerchantable</quotedText>” in subsection (d) (as so redesignated) and inserting “<quotedText>rendering unmerchantable, or receipt on the bonded premises of a distilled spirits plant</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s5053">26 USC 5053 note</ref>.</p></sidenote> shall take effect on the 1st day of the 1st calendar quarter that begins at least 180 days after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1415">SEC. 1415.</num> <heading>REPEAL OF REQUIREMENT FOR WHOLESALE DEALERS IN LIQUORS TO POST SIGN.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 5115 (relating to sign required on premises) is hereby repealed.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Section 5681(a) is amended by striking and every wholesale dealer in liquors,” and by striking “<quotedText>section 5115(a) or</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>Section 5681(c) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>or wholesale liquor establishment, on which no sign required by section 5115(a) or</quotedText>” and inserting “<quotedText>on which no sign required by</quotedText>”, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking “<quotedText>or wholesale liquor establishment, or who</quotedText>” and inserting “<quotedText>or who</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>The table of sections for subpart D of part II of subchapter A of chapter 51 is amended by striking the item relating to section 5115.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s5681">26 USC 5681 note</ref>.</p></sidenote> shall take effect on the date of the enactment of this Act.<page identifier="/us/stat/111/1048">111 STAT. 1048</page></content> </subsection> </section> <section> <num value="1416">SEC. 1416.</num> <heading>REFUND OF TAX TO WINE RETURNED TO BOND NOT LIMITED TO UNMERCHANTABLE WINE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 5044(a) (relating to refund of tax on unmerchantable wine) is amended by striking “<quotedText>as unmerchantable</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Section 5361 is amended by striking “<quotedText>unmerchantable</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>The section heading for section 5044 is amended by striking “<quotedText><inline class="smallCaps">unmerchantable</inline></quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>The item relating to section 5044 in the table of sections for subpart C of part I of subchapter A of chapter 51 is amended by striking “<quotedText>unmerchantable</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s5044">26 USC 5044 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall take effect on the 1st day of the 1st calendar quarter that begins at least 180 days after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1417">SEC. 1417.</num> <heading>USE OF ADDITIONAL AMELIORATING MATERIAL IN CERTAIN WINES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 5384(b)(2)(D) (relating to ameliorated fruit and berry wines) is amended by striking “<quotedText>loganberries, currants, or gooseberries,</quotedText>” and inserting “<quotedText>any fruit or berry with a natural fixed acid of 20 parts per thousand or more (before any correction of such fruit or berry)</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s5384">26 USC 5384 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section shall take effect on the 1st day of the 1st calendar quarter that begins at least 180 days after the date of the enactment of this Act.</content> </subsection> </section> <section> <subsection class="indent0 fontsize10"> <num value="1418">SEC. 1418.</num> <heading>DOMESTICALLY PRODUCED BEER MAY BE WITHDRAWN FREE OF TAX FOR USE OF FOREIGN EMBASSIES, LEGATIONS, ETC.</heading> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 5053 (relating to exemptions), as amended by section 1414(b), is amended by inserting after subsection (f) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Removals for Use of Foreign Embassies, Legations, Etc</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Subject to such regulations as the Secretary may prescribe—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>beer may be withdrawn from the brewery without payment of tax for transfer to any customs bonded warehouse for entry pending withdrawal therefrom as provided in subparagraph (B), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>beer entered into any customs bonded warehouse under subparagraph (A) may be withdrawn for consumption in the United States by, and for the official and family use of, such foreign governments, organizations, and individuals as are entitled to withdraw imported beer from such warehouses free of tax.</content></subparagraph> <continuation class="indent0 fontsize10">Beer transferred to any customs bonded warehouse under subparagraph (A) shall be entered, stored, and accounted for in such warehouse under such regulations and bonds as the Secretary may prescribe, and may be withdrawn therefrom by such governments, organizations, and individuals free of tax under the same conditions and procedures as imported beer.<page identifier="/us/stat/111/1049">111 STAT. 1049</page></continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Other rules to apply</inline>.—</heading><content>Rules similar to the rules of paragraphs (2) and (3) of section 5362(e) shall apply for purposes of this subsection.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a)<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s5053">26 USC 5053 note</ref>.</p></sidenote> shall take effect on the 1st day of the 1st calendar quarter that begins at least 180 days after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1419">SEC. 1419.</num> <heading>BEER MAY BE WITHDRAWN FREE OF TAX FOR DESTRUCTION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 5053 (relating to exemptions), as amended by section 1418(a), is amended by inserting after subsection (g) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Removals for Destruction</inline>.—</heading><content>Subject to such regulations as the Secretary may prescribe, beer may be removed from the brewery without payment of tax for destruction.”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a)<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s5033">26 USC 5053 note</ref>.</p></sidenote> shall take effect on the 1st day of the 1st calendar quarter that begins at least 180 days after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1420">SEC. 1420.</num> <heading>AUTHORITY TO ALLOW DRAWBACK ON EXPORTED BEER WITHOUT SUBMISSION OF RECORDS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>The first sentence of section 5055 (relating to drawback of tax on beer) is amended by striking “<quotedText>found to have been paid</quotedText>” and all that follows and inserting “<quotedText>paid on such beer if there is such proof of exportation as the Secretary may by regulations require.</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a)<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s5055">26 USC 5055 note</ref>.</p></sidenote> shall take effect on the 1st day of the 1st calendar quarter that begins at least 180 days after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1421">SEC. 1421.</num> <heading>TRANSFER TO BREWERY OF BEER IMPORTED IN BULK WITHOUT PAYMENT OF TAX.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Part II of subchapter G of chapter 51 is amended by adding at the end the following new section: <quotedContent> <section> <num value="5418">“SEC. 5418.</num> <heading>BEER IMPORTED IN BULK.</heading> <content class="indent0 fontsize10">“Beer imported or brought into the United States in bulk containers may, under such regulations as the Secretary may prescribe, be withdrawn from customs custody and transferred in such bulk containers to the premises of a brewery without payment of the internal revenue tax imposed on such beer. The proprietor of a brewery to which such beer is transferred shall become liable for the tax on the beer withdrawn from customs custody under this section upon release of the beer from customs custody, and the importer, or the person bringing such beer into the United States, shall thereupon be relieved of the liability for such tax.”.</content> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections for such part II is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 5418.</designator> <label>Beer imported in bulk.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s5418">26 USC 5418 note</ref>.</p></sidenote> shall take effect on the 1st day of the 1st calendar quarter that begins at least 180 days after the date of the enactment of this Act.<page identifier="/us/stat/111/1050">111 STAT. 1050</page></content> </subsection> </section> <section> <num value="1422">SEC. 1422.</num> <heading>TRANSFER TO BONDED WINE CELLARS OF WINE IMPORTED IN BULK WITHOUT PAYMENT OF TAX.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Part II of subchapter F of chapter 51 is amended by inserting after section 5363 the following new section: <quotedContent> <num value="5364">“SEC. 5364.</num> <heading>WINE IMPORTED IN BULK</heading> <content>“Wine imported or brought into the United States in bulk containers may, under such regulations as the Secretary may prescribe, be withdrawn from customs custody and transferred in such bulk containers to the premises of a bonded wine cellar without payment of the internal revenue tax imposed on such wine. The proprietor of a bonded wine cellar to which such wine is transferred shall become liable for the tax on the wine withdrawn from customs custody under this section upon release of the wine from customs custody, and the importer, or the person bringing such wine into the United States, shall thereupon be relieved of the liability for such tax.”.</content> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections for such part II is amended by inserting after the item relating to section 5363 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 5364.</designator> <label>Wine imported in bulk.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s5364">26 USC 5364 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall take effect on the 1st day of the 1st calendar quarter that begins at least 180 days after the date of the enactment of this Act.</content> </subsection> </section> </part> <part> <num value="III">PART III—</num><heading>OTHER EXCISE TAX PROVISIONS</heading> <section> <num value="1431">SEC. 1431.</num> <heading>AUTHORITY TO GRANT EXEMPTIONS FROM REGISTRATION REQUIREMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 4222(b)(2) (relating to export) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>in the case of any sale or resale for export,</quotedText>”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<quotedText><inline class="smallCaps">Export</inline></quotedText>” and inserting “<inline class="smallCaps"><inline class="smallCaps">Under Regulations</inline></inline>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4222">26 USC 4222 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by subsection (a) shall take effect on the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1432">SEC. 1432.</num> <heading>REPEAL OF EXPIRED PROVISIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Piggy-Back Trailers</inline>.—</heading><content>Section 4051 (relating to imposition of tax on heavy trucks and trailers sold at retail) is amended by striking subsection (d) and by redesignating subsection (e) as subsection (d).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Deep Seabed Mining</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subchapter F of chapter 36 (relating to tax on removal of hard mineral resources from deep seabed) is hereby repealed.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conforming amendment</inline>.—</heading><content>The table of subchapters for chapter 36 is amended by striking the item relating to subchapter F.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Ozone-Depleting Chemicals</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Paragraph (1) of section 4681(b) is amended by striking subparagraphs (B) and (C) and inserting the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Base tax amount</inline>.—</heading><content>The base tax amount for purposes of subparagraph (A) with respect to any sale or <page identifier="/us/stat/111/1051">111 STAT. 1051</page>use during any calendar year after 1995 shall be $5.35 increased by 45 cents for each year after 1995 ”.</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Subsection (g) of section 4682 is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Chemicals Used as Propellants in Metered-Dose Inhalers</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Exemption from tax</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>No tax shall be imposed by section 4681 on—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>any use of any substance as a propellant in metered-dose inhalers, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>any qualified sale by the manufacturer, producer, or importer of any substance.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Qualified sale</inline>.—</heading><chapeau>For purposes of subparagraph (A), the term ‘qualified sale’ means any sale by the manufacturer, producer, or importer of any substance—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>for use by the purchaser as a propellant in metered dose inhalers, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>for resale by the purchaser to a 2d purchaser for such use by the 2d purchaser.</content></clause> <continuation class="indent0 fontsize10">The preceding sentence shall apply only if the manufacturer,<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> producer, and importer, and the 1st and 2d purchasers (if any) meet such registration requirements as may be prescribed by the Secretary.</continuation> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Overpayments</inline>.—</heading><content>If any substance on which tax was paid under this subchapter is used by any person as a propellant in metered-dose inhalers, credit or refund without interest shall be allowed to such person in an amount equal to the tax so paid. Amounts payable under the preceding sentence with respect to uses during the taxable year shall be treated as described in section 34(a) for such year unless claim thereof has been timely filed under this paragraph.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> </section> <section> <num value="1433">SEC. 1433.</num> <heading>SIMPLIFICATION OF IMPOSITION OF EXCISE TAX ON ARROWS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (b) of section 4161 (relating to imposition of tax) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Bows and Arrows, Etc</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Bows</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>There is hereby imposed on the sale by the manufacturer, producer, or importer of any bow which has a draw weight of 10 pounds or more, a tax equal to 11 percent of the price for which so sold.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Parts and accessories</inline>.—</heading><chapeau>There is hereby imposed upon the sale by the manufacturer, producer, or importer—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>of any part of accessory suitable for inclusion in or attachment to a bow described in subparagraph (A), and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>of any quiver suitable for use with arrows described in paragraph (2),</content></clause> <continuation class="indent0 fontsize10">a tax equivalent to 11 percent of the price for which so sold.</continuation> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Arrows</inline>.—</heading><chapeau>There is hereby imposed on the sale by the manufacturer, producer, or importer of any shaft, point, nock, or vane of a type used in the manufacture of any arrow which after its assembly—<page identifier="/us/stat/111/1052">111 STAT. 1052</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>measures 18 inches overall or more in length, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>measures less than 18 inches overall in length but is suitable for use with a bow described in paragraph (IKA),</content></subparagraph> <continuation class="indent0 fontsize10">a tax equal to 12.4 percent of the price for which so sold.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Coordination with subsection (a)</inline>.—</heading><content>No tax shall be imposed under this subsection with respect to any article taxable under subsection (a).”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4161">26 USC 4161 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall apply to articles sold by the manufacturer, producer, or importer after September 30, 1997.</content> </subsection> </section> <section> <num value="1434">SEC. 1434.</num> <heading>MODIFICATIONS TO RETAIL TAX ON HEAVY TRUCKS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Certain Repairs and Modifications Not Treated as Manufacture</inline>.—</heading><content>Section 4052 is amended by redesignating the subsection defining a long-term lease as subsection (e) and by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Certain Repairs and Modifications Not Treated as Manufacture</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>An article described in section 4051(a)(1) shall not be treated as manufactured or produced solely by reason of repairs or modifications to the article (including any modification which changes the transportation function of the article or restores a wrecked article to a functional condition) if the cost of such repairs and modifications does not exceed 75 percent of the retail price of a comparable new article.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Exception</inline>.—</heading><content>Paragraph (1) shall not apply if the article (as repaired or modified) would, if new, be taxable under section 4051 and the article when new was not taxable under this section or the corresponding provision of prior law.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Simplification of Certification Procedures With Respect to Sales of Taxable Articles</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Repeal of registration requirement</inline>.—</heading><content>Subsection (d) of section 4052 is amended by striking “<quotedText>rules of—</quotedText>” and all that follows through “shall apply” and inserting “<quotedText>rules of subsections (c) and (d) of section 4216 (relating to partial payments) shall apply</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Requirement to modify regulations</inline>.—</heading><content>Section 4052 is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Regulations</inline>.—</heading><content>The Secretary shall prescribe regulations which permit, in lieu of any other certification, persons who are purchasing articles taxable under this subchapter for resale or leasing in a long-term lease to execute a statement (made under penalties of perjury) on the sale invoice that such sale is for resale. The Secretary shall not impose any registration requirement as a condition of using such procedure.”.</content> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4052">26 USC 4052 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall take effect on January 1, 1998.</content> </subsection> </section> <section> <num value="1435">SEC. 1435.</num> <heading>SKYDIVING FLIGHTS EXEMPT FROM TAX ON TRANSPORTATION OF PERSONS BY AIR.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 4261 (relating to imposition of tax on transportation of persons by air), as previously amended by this Act, is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection:<page identifier="/us/stat/111/1053">111 STAT. 1053</page> <quotedContent> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Exemption for Skydiving Uses</inline>.—</heading><content>No tax shall be imposed by this section or section 4271 on any air transportation exclusively for the purpose of skydiving.”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Transportation Treated as Noncommercial Aviation</inline>.—</heading><content>The last sentence of section 4041(c)(2) is amended by inserting before the period “or by reason of section 4261(h)”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Subsection (a)</inline>.—</heading><content>The amendment made by subsection<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s426">26 USC 426 note</ref>.</p></sidenote> (a) shall apply to amounts paid after September 30, 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Subsection (b)</inline>.—</heading><content>The amendment made by subsection<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4041">26 USC 4041 note</ref>.</p></sidenote> (b) shall take effect on October 1, 1997.</content></paragraph> </subsection> </section> <section> <num value="1436">SEC. 1436.</num> <heading>ALLOWANCE OR CREDIT OF REFUND FOR TAX-PAID AVIATION FUEL PURCHASED BY REGISTERED PRODUCER OF AVIATION FUEL.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 4091 (relating to aviation fuel) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Refund of Tax-Paid Aviation Fuel to Registered Producer of Fuel</inline>.—</heading><chapeau>If—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>a producer of aviation fuel is registered under section 4101, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>such producer establishes to the satisfaction of the Secretary that a prior tax was paid (and not credited or refunded) on aviation fuel held by such producer,</content></paragraph> <continuation class="indent0 fontsize10">then an amount equal to the tax so paid shall be allowed as a refund (without interest) to such producer in the same manner as if it were an overpayment of tax imposed by this section.”.</continuation> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>The last sentence of section 6416(d) is amended by inserting before the period “or to the tax imposed by section 4091 in the case of refunds described in section 4091(d)”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4091">26 USC 4091 note</ref>.</p></sidenote> shall apply to fuel acquired by the producer after September 30, 1997.</content> </subsection> </section> </part> </subtitle> <subtitle> <num value="B">Subtitle B—</num><heading>Tax-Exempt Bond Provisions</heading> <section> <num value="1441">SEC. 1441.</num> <heading>REPEAL OF $100,000 LIMITATION ON UNSPENT PROCEEDS UNDER 1-YEAR EXCEPTION FROM REBATE.</heading> <content>Subclause (I) of section 148(f)(4)(B)(ii) (relating to additional period for certain bonds) is amended by striking “<quotedText>the lesser of 5 percent of the proceeds of the issue or $100,000</quotedText>” and inserting “<quotedText>5 percent of the proceeds of the issue</quotedText>”.</content> </section> <section> <num value="1442">SEC. 1442.</num> <heading>EXCEPTION FROM REBATE FOR EARNINGS ON BONA FIDE DEBT SERVICE FUND UNDER CONSTRUCTION BOND RULES.</heading> <content>Subparagraph (C) of section 148(f)(4) is amended by adding at the end the following new clause: <quotedContent> <clause class="indent3 fontsize10"><num value="xvii">“(xvii)</num> <heading><inline class="smallCaps">Treatment of bona fide debt service funds</inline>.—</heading><content>If the spending requirements of clause (ii) are met with respect to the available construction proceeds of a construction issue, then paragraph (2) shall not apply to earnings on a bona fide debt service fund for such issue.”.<page identifier="/us/stat/111/1054">111 STAT. 1054</page></content></clause> </quotedContent> </content></section> <section> <num value="1443">SEC. 1443.</num> <heading>REPEAL OF DEBT SERVICE-BASED LIMITATION ON INVESTMENT IN CERTAIN NONPURPOSE INVESTMENTS.</heading> <content>Subsection (d) of section 148 (relating to special rules for reasonably required reserve or replacement fund) is amended by striking paragraph (3).</content> </section> <section> <num value="1444">SEC. 1444.</num> <heading>REPEAL OF EXPIRED PROVISIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <content>Paragraph (2) of section 148(c) is amended by striking subparagraph (B) and by redesignating subparagraphs (C), (D), and (E) as subparagraphs (B), (C), and (D), respectively.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>Paragraph (4) of section 148(f) is amended by striking subparagraph (E).</content> </subsection> </section> <section> <num value="1446">SEC. 1445.</num><sidenote><p class="indent0 firstIndent0 fontsize8">26 USC 148 note.</p></sidenote> <heading>EFFECTIVE DATE.</heading> <content>The amendments made by this subtitle shall apply to bonds issued after the date of the enactment of this Act.</content> </section> </subtitle> <subtitle> <num value="C">Subtitle C—</num><heading>Tax Court Procedures</heading> <section> <num value="1451">SEC. 1451.</num> <heading>OVERPAYMENT DETERMINATIONS OF TAX COURT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Appeal of Order</inline>.—</heading><content>Paragraph (2) of section 6512(b) (relating to jurisdiction to enforce) is amended by adding at the end the following new sentence: “An order of the Tax Court disposing of a motion under this paragraph shall be reviewable in the same manner as a decision of the Tax Court, but only with respect to the matters determined in such order.”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Denial of Jurisdiction Regarding Certain Credits and Reductions</inline>.—</heading><content>Subsection (b) of section 6512 (relating to overpayment determined by Tax Court) is amended by adding at the end the following new paragraph: <quotedContent> <num value="4">“(4)</num> <heading><inline class="smallCaps">Denial of jurisdiction regarding certain credits and reductions</inline>.—</heading><content>The Tax Court shall have no jurisdiction under this subsection to restrain or review any credit or reduction made by the Secretary under section 6402.”.</content> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6512">26 USC 6512 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall take effect on the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1452">SEC. 1452.</num> <heading>REDETERMINATION OF INTEREST PURSUANT TO MOTION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (c) of section 7481 (relating to jurisdiction over interest determinations) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Jurisdiction Over Interest Determinations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Notwithstanding subsection (a), if, within 1 year after the date the decision of the Tax Court becomes final under subsection (a) in a case to which this subsection applies, the taxpayer files a motion in the Tax Court for a redetermination of the amount of interest involved, then the Tax Court may reopen the case solely to determine whether the taxpayer has made an overpayment of such interest or the Secretary has made an underpayment of such interest and the amount thereof.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Cases to which this subsection applies</inline>.—</heading><chapeau>This subsection shall apply where—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num><clause class="inline"><num value="i">(i)</num> <content>an assessment has been made by the Secretary under section 6215 which includes interest as imposed by this title, and<page identifier="/us/stat/111/1055">111 STAT. 1055</page></content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii)</num> <content>the taxpayer has paid the entire amount of the deficiency plus interest claimed by the Secretary, and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the Tax Court finds under section 6512(b) that the taxpayer has made an overpayment.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Special rules</inline>.—</heading><content>If the Tax Court determines under this subsection that the taxpayer has made an overpayment of interest or that the Secretary has made an underpayment of interest, then that determination shall be treated under section 6512(b)(1) as a determination of an overpayment of tax. An order of the Tax Court redetermining interest, when entered upon the records of the court, shall be reviewable in the same manner as a decision of the Tax Court.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s7481">26 USC 7481 note</ref>.</p></sidenote> shall take effect on the date of the enactment of this Act</content> </subsection> </section> <section> <num value="1453">SEC. 1453.</num> <heading>APPLICATION OF NET WORTH REQUIREMENT FOR AWARDS OF LITIGATION COSTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Paragraph (4) of section 7430(c) (defining prevailing party) is amended by adding at the end thereof the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Special rules for applying net worth requirement</inline>.—</heading><chapeau>In applying the requirements of section 2412(d)(2)(B) of title 28, United States Code, for purposes of subparagraph (A)(iii) of this paragraph—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <chapeau>the net worth limitation in clause (i) of such section shall apply to—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>an estate but shall be determined as of the date of the decedent’s death, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>a trust but shall be determined as of the last day of the taxable year involved in the proceeding, and</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>individuals filing a joint return shall be treated as separate individuals for purposes of clause (i) of such section.”.</content></clause> </subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s7430">26 USC 7430 note</ref>.</p></sidenote> shall apply to proceedings commenced after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1454">SEC. 1454.</num> <heading>PROCEEDINGS FOR DETERMINATION OF EMPLOYMENT STATUS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subchapter B of chapter 76 (relating to proceedings by taxpayers and third parties) is amended by redesignating section 7436 as section 7437 and by inserting after section 7435 the following new section: <quotedContent> <section> <num value="7436">“SEC. 7436.</num> <heading>PROCEEDINGS FOR DETERMINATION OF EMPLOYMENT STATUS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Creation of Remedy</inline>.—</heading><chapeau>If, in connection with an audit of any person, there is an actual controversy involving a determination by the Secretary as part of an examination that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>one or more individuals performing services for such person are employees of such person for purposes of subtitle C, or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>such person is not entitled to the treatment under subsection (a) of section 530 of the Revenue Act of 1978 with respect to such an individual,</content></paragraph> <continuation class="indent0 fontsize10">upon the filing of an appropriate pleading, the Tax Court may determine whether such a determination by the Secretary is correct.<page identifier="/us/stat/111/1056">111 STAT. 1056</page> Any such redetermination by the Tax Court shall have the force and effect of a decision of the Tax Court and shall be reviewable as such.</continuation> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Limitations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Petitioner</inline>.—</heading><content>A pleading may be filed under this section only by the person for whom the services are performed.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Time for filing action</inline>.—</heading><content>If the Secretary sends by certified or registered mail notice to the petitioner of a determination by the Secretary described in subsection (a), no proceeding may be initiated under this section with respect to such determination unless the pleading is filed before the 91st day after the date of such mailing.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">No adverse inference from treatment while action is pending</inline>.—</heading><content>If, during the pendency of any proceeding brought under this section, the petitioner changes his treatment for employment tax purposes of any individual whose employment status as an employee is involved in such proceeding (or of any individual holding a substantially similar position) to treatment as an employee, such change shall not be taken into account in the Tax Court’s determination under this section.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Small Case Procedures</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>At the option of the petitioner, concurred in by the Tax Court or a division thereof before the hearing of the case, proceedings under this section may (notwithstanding the provisions of section 7453) be conducted subject to the rules of evidence, practice, and procedure applicable under section 7463 if the amount of employment taxes placed in dispute is $10,000 or less for each calendar quarter involved.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Finality of decisions</inline>.—</heading><content>A decision entered in any proceeding conducted under this subsection shall not be reviewed in any other court and shall not be treated as a precedent for any other case not involving the same petitioner and the same determinations.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Certain rules to apply</inline>.—</heading><content>Rules similar to the rules of the last sentence of subsection (a), and subsections (c), (d), and (e), of section 7463 shall apply to proceedings conducted under this subsection.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> <heading><inline class="smallCaps">Special Rules</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Restrictions on assessment and collection pending action, etc</inline>.—</heading><content>The principles of subsections (a), (b), (c), (d), and (f) of section 6213, section 6214(a), section 6215, section 6503(a), section 6512, and section 7481 shall apply to proceedings brought under this section in the same manner as if the Secretary’s determination described in subsection (a) were a notice of deficiency.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Awarding of costs and certain fees</inline>.—</heading><content>Section 7430 shall apply to proceedings brought under this section.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Employment Tax</inline>.—</heading><content>The term ‘employment tax’ means any tax imposed by subtitle C”.</content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Subsection (d) of section 6511 is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Special period of limitation with respect to selfemployment tax in certain cases</inline>.—</heading><chapeau>If—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the claim for credit or refund relates to an overpayment of the tax imposed by chapter 2 (relating to the <page identifier="/us/stat/111/1057">111 STAT. 1057</page>tax on self-employment income) attributable to Tax Court determination in a proceeding under section 7436, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the allowance of a credit or refund of such overpayment is otherwise prevented by the operation of any law or rule of law other than section 7122 (relating to compromises),</content></subparagraph> <continuation class="indent0 fontsize10">such credit or refund may be allowed or made if claim therefor is filed on or before the last day of the second year after the calendar year in which such determination becomes final.”.</continuation> </paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Subsection (a) of section 7421 is amended by striking “<quotedText>and 7429(b)</quotedText>” and inserting “<quotedText>7429(b), and 7436</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Sections 7453 and 7481(b) are each amended by striking “<quotedText>section 7463</quotedText>” and inserting “<quotedText>section 7436(c) or 7463</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>The table of sections for subchapter B of chapter 76 is amended by striking the last item and inserting the following: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 7436.</designator> <label>Proceedings for determination of employment status.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 7437.</designator> <label>Cross references.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6511">26 USC 6511 note</ref>.</p></sidenote> shall take effect on the date of the enactment of this Act.</content> </subsection> </section> </subtitle> <subtitle> <num value="D">Subtitle D—</num><heading>Other Provisions</heading> <section> <num value="1461">SEC. 1461.</num> <heading>EXTENSION OF DUE DATE OF FIRST QUARTER ESTIMATED TAX PAYMENT BY PRIVATE FOUNDATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Paragraph (3) of section 6655(g) is amended by adding at the end the following new sentence: “In the case of a private foundation, subsection (c)(2) shall be applied by substituting ‘May 15’ for ‘April 15’.”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a)<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6655">26 USC 6655 note</ref>.</p></sidenote> shall apply for purposes of determining underpayments of estimated tax for taxable years beginning after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1462">SEC. 1462.</num> <heading>CLARIFICATION OF AUTHORITY TO WITHHOLD PUERTO RICO INCOME TAXES FROM SALARIES OF FEDERAL EMPLOYEES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (c) of section 5517 of title 5, United States Code, is amended by striking “<quotedText>or territory or possession</quotedText>” and inserting “<quotedText>, territory, possession, or commonwealth</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a)<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s5517">5 USC 5517 note</ref>.</p></sidenote> shall take effect on January 1, 1998.</content> </subsection> </section> <section> <num value="1463">SEC. 1463.</num> <heading>CERTAIN NOTICES DISREGARDED UNDER PROVISION INCREASING INTEREST RATE ON LARGE CORPORATE UNDERPAYMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Subparagraph (B) of section 6621(c)(2) (defining applicable date) is amended by adding at the end the following new clause: <quotedContent> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Exception for letters or notices involving small amounts</inline>.—</heading><content>For purposes of this paragraph, any letter or notice shall be disregarded if the amount of the deficiency or proposed deficiency (or the assessment or proposed assessment) set forth in such letter or notice is not greater than $100,000 (determined by not taking into account any interest, penalties, or additions to tax).”.<page identifier="/us/stat/111/1058">111 STAT. 1058</page></content></clause> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6621">26 USC 6621</ref></p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall apply for purposes of determining interest for periods after December 31, 1997.</content> </subsection> </section> </subtitle> <num value="XV">TITLE XV—</num><heading>PENSIONS AND EMPLOYEE BENEFITS</heading> <subtitle> <num value="A">Subtitle A—</num><heading>Simplification</heading> <section> <num value="1501">SEC. 1501.</num> <heading>MATCHING CONTRIBUTIONS OF SELF-EMPLOYED INDIVIDUALS NOT TREATED AS ELECTIVE EMPLOYER CONTRIBUTIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 402(g) (relating to limitation on exclusion for elective deferrals) is amended by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="9">“(9)</num> <heading><inline class="smallCaps">Matching contributions on behalf of selfemployed individuals not treated as elective employer contributions</inline>.—</heading><content>Except as provided in section 401(k)(3)(D)(ii), any matching contribution described in section 401(m)(4)(A) which is made on behalf of a self-employed individual (as defined in section 401(c)) shall not be treated as an elective employer contribution under a qualified cash or deferred arrangement (as defined in section 401(k)) for purposes of this title.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendment for Simple Retirement Accounts</inline>.—</heading><content>Section 408(p) (relating to simple retirement accounts) is amended by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <heading><inline class="smallCaps">Matching contributions on behalf of selfemployed individuals not treated as elective employer contributions</inline>.—</heading><content>Any matching contribution described in paragraph (2)(A)(iii) which is made on behalf of a self-employed individual (as defined in section 401(c)) shall not be treated as an elective employer contribution to a simple retirement account for purposes of this title.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s402">26 USC 402 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Elective deferrals</inline>.—</heading><content>The amendment made by subsection (a) shall apply to years beginning after December 31, 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s408">26 USC 408 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Simple retirement accounts</inline>.—</heading><content>The amendment made by subsection (b) shall apply to years beginning after December 31, 1996.</content></paragraph> </subsection> </section> <section> <num value="1502">SEC. 1502.</num> <heading>MODIFICATION OF PROHIBITION OF ASSIGNMENT OR ALIENATION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Amendment to ERISA</inline>.—</heading><content>Section 206(d) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1056(d)) is amended by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <chapeau>Paragraph (1) shall not apply to any offset of a participant’s benefits provided under an employee pension benefit plan against an amount that the participant is ordered or required to pay to the plan if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>the order or requirement to pay arises—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>under a judgment of conviction for a crime involving such plan,<page identifier="/us/stat/111/1059">111 STAT. 1059</page></content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>under a civil judgment (including a consent order or decree) entered by a court in an action brought in connection with a violation (or alleged violation) of part 4 of this subtitle, or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>pursuant to a settlement agreement between the Secretary and the participant, or a settlement agreement between the Pension Benefit Guaranty Corporation and the participant, in connection with a violation (or alleged violation) of part 4 of this subtitle by a fiduciary or any other person,</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the judgment, order, decree, or settlement agreement expressly provides for the offset of all or part of the amount ordered or required to be paid to the plan against the participant’s benefits provided under the plan, and</content></subparagraph> <paragraph class="indent1 fontsize10"><num value="C">“(C)</num> <chapeau>in a case in which the survivor annuity requirements of section 205 apply with respect to distributions from the plan to the participant, if the participant has a spouse at the time at which the offset is to be made—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <chapeau>either—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>such spouse has consented in writing to such offset and such consent is witnessed by a notary public or representative of the plan (or it is established to the satisfaction of a plan representative that such consent may not be obtained by reason of circumstances described in section 205(c)(2)(B)), or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>an election to waive the right of the spouse to a qualified joint and survivor annuity or a qualified preretirement survivor annuity is in effect in accordance with the requirements of section 205(c),</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>such spouse is ordered or required in such judgment, order, decree, or settlement to pay an amount to the plan in connection with a violation of part 4 of this subtitle, or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>in such judgment, order, decree, or settlement, such spouse retains the right to receive the survivor annuity under a qualified joint and survivor annuity provided pursuant to section 205(a)(1) and under a qualified preretirement survivor annuity provided pursuant to section 205(a)(2), determined in accordance with paragraph (5). A plan shall not be treated as failing to meet the requirements of section 205 solely by reason of an offset under this paragraph.</content></clause> </paragraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num><subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <chapeau>The survivor annuity described in paragraph (4)(C)(iii) shall be determined as if—</chapeau> <clause class="indent0 fontsize10"><num value="i">“(i)</num> <content>the participant terminated employment on the date of the offset,</content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii)</num> <content>there was no offset,</content></clause> <clause class="indent0 fontsize10"><num value="iii">“(iii)</num> <content>the plan permitted commencement of benefits only on or after normal retirement age,</content></clause> <clause class="indent0 fontsize10"><num value="iv">“(iv)</num> <content>the plan provided only the minimum-required qualified joint and survivor annuity, and</content></clause> <clause class="indent0 fontsize10"><num value="v">“(v)</num> <content>the amount of the qualified preretirement survivor annuity under the plan is equal to the amount of the survivor annuity payable under the minimum-required qualified joint and survivor annuity.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>For purposes of this paragraph, the term ‘minimum-required qualified joint and survivor annuity’ means the qualified joint and survivor annuity which is the actuarial equivalent of <page identifier="/us/stat/111/1060">111 STAT. 1060</page>the participant’s accrued benefit (within the meaning of section 3(23)) and under which the survivor annuity is 50 percent of the amount of the annuity which is payable during the joint lives of the participant and the spouse.”.</content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Amendment to 1986 Code</inline>.—</heading><content>Section 401(a)(13) (relating to assignment and alienation) is amended by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Special rule for certain judgments and settlements</inline>.—</heading><chapeau>Subparagraph (A) shall not apply to any offset of a participant’s benefits provided under a plan against an amount that the participant is ordered or required to pay to the plan if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <chapeau>the order or requirement to pay arises—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>under a judgment of conviction for a crime involving such plan,</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>under a civil judgment (including a consent order or decree) entered by a court in an action brought in connection with a violation (or alleged violation) of part 4 of subtitle B of title I of the Employee Retirement Income Security Act of 1974, or</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>pursuant to a settlement agreement between the Secretary of Labor and the participant, or a settlement agreement between the Pension Benefit Guaranty Corporation and the participant, in connection with a violation (or alleged violation) of part 4 of such subtitle by a fiduciary or any other person,</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the judgment, order, decree, or settlement agreement expressly provides for the offset of all or part of the amount ordered or required to be paid to the plan against the participant’s benefits provided under the plan, and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <chapeau>in a case in which the survivor annuity requirements of section 401(a)(H) apply with respect to distributions from the plan to the participant, if the participant has a spouse at the time at which the offset is to be made—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>either such spouse has consented in writing to such offset and such consent is witnessed by a notary public or representative of the plan (or it is established to the satisfaction of a plan representative that such consent may not be obtained by reason of circumstances described in section 417(a)(2)(B)), or an election to waive the right of the spouse to either a qualified joint and survivor annuity or a qualified preretirement survivor annuity is in effect in accordance with the requirements of section 417(a),</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>such spouse is ordered or required in such judgment, order, decree, or settlement to pay an amount to the plan in connection with a violation of part 4 of such subtitle, or</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>in such judgment, order, decree, or settlement, such spouse retains the right to receive the survivor annuity under a qualified joint and survivor annuity provided pursuant to section <page identifier="/us/stat/111/1061">111 STAT. 1061</page>401(a)(11)(A)(i) and under a qualified preretirement survivor annuity provided pursuant to section 401(a)(11)(A)(ii), determined in accordance with subparagraph (D).</content></subclause> <continuation class="indent0 fontsize10">A plan shall not be treated as failing to meet the requirements of this subsection, subsection (k), section 403(b), or section 409(d) solely by reason of an offset described in this subparagraph.</continuation> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Survivor annuity</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The survivor annuity described in subparagraph (C)(iii)(III) shall be determined as if—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the participant terminated employment on the date of the offset,</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>there was no offset,</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>the plan permitted commencement of benefits only on or after normal retirement age,</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>the plan provided only the minimum-required qualified joint and survivor annuity, and</content></subclause> <subclause class="indent4 fontsize10"><num value="V">“(V)</num> <content>the amount of the qualified preretirement survivor annuity under the plan is equal to the amount of the survivor annuity payable under the minimum-required qualified joint and survivor annuity.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Definition</inline>.—</heading><content>For purposes of this subparagraph, the term ‘minimum-required qualified joint and survivor annuity’ means the qualified joint and survivor annuity which is the actuarial equivalent of the participant’s accrued benefit (within the meaning of section 411(a)(7)) and under which the survivor annuity is 50 percent of the amount of the annuity which is payable during the joint lives of the participant and the spouse.”.</content></clause> </subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s401">26 USC 401 note</ref>.</p></sidenote> shall apply to judgments, orders, and decrees issued, and settlement agreements entered into, on or after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1503">SEC. 1503.</num> <heading>ELIMINATION OF PAPERWORK BURDENS ON PLANS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Elimination of Unnecessary Filing Requirements</inline>.—</heading><content>Section 101(b) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1021(b)) is amended by striking paragraphs (1), (2), and (3) and by redesignating paragraphs (4) and (5) as paragraphs (1) and (2), respectively.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Elimination of Plan Description</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Section 102(a) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1022(a)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking paragraph (2), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking “<quotedText>(a)(1)</quotedText>” and inserting “<quotedText>(a)</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Section 102(b) of such Act (29 U.S.C. 1022(b)) is amended by striking “<quotedText>The plan description and summary plan description shall contain</quotedText>” and inserting “<quotedText>The summary plan description shall contain</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>The heading for section 102 of such Act is amended by striking “<quotedText>plan description and</quotedText>”.<page identifier="/us/stat/111/1062">111 STAT. 1062</page></content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Furnishing of Reports</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>In general.—Section 104(a)(1) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1024(a)(1)) is amended to read as follows: <quotedContent> <section> <num value="104">“<inline class="smallCaps">Sec</inline>. 104.</num> <subsection class="inline"><num value="a">(a)</num><paragraph class="inline"><num value="1">(1)</num> <content>The administrator of any employee benefit plan subject to this part shall file with the Secretary the annual report for a plan year within 210 days after the close of such year (or within such time as may be required by regulations promulgated<sidenote><p class="indent0 firstIndent0 fontsize8">Public information.</p></sidenote> by the Secretary in order to reduce duplicative filing). The Secretary shall make copies of such annual reports available for inspection in the public document room of the Department of Labor.”.</content></paragraph> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Secretary may request documents</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 104(a) of such Act (29 U.S.C. 1024(a)) is amended by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="6">“(6) The</num> <content>administrator of any employee benefit plan subject to this part shall furnish to the Secretary, upon request, any documents relating to the employee benefit plan, including but not limited to, the latest summary plan description (including any summaries of plan changes not contained in the summary plan description), and the bargaining agreement, trust agreement, contract, or other instrument under which the plan is established or operated.”.</content></paragraph> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Penalty</inline>.—</heading><content>Section 502(c) of such Act (29 U.S.C. 1132(c)) is amended by redesignating paragraph (6) as paragraph (7) and by inserting after paragraph (5) the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>If, within 30 days of a request by the Secretary to a plan administrator for documents under section 104(a)(6), the plan administrator fails to furnish the material requested to the Secretary, the Secretary may assess a civil penalty against the plan administrator of up to $100 a day from the date of such failure (but in no event in excess of $1,000 per request). No penalty shall be imposed under this paragraph for any failure resulting from matters reasonably beyond the control of the plan administrator”.</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Section 104(b)(1) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1024(b)(1)) is amended by striking “<quotedText>section 102(a)(1)</quotedText>” each place it appears and inserting “<quotedText>section 102(a)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Section 104(b)(2) of such Act (29 U.S.C. 1024(b)(2)) is amended by striking “<quotedText>the plan description and</quotedText>” and inserting “<quotedText>the latest updated summary plan description and</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Section 104(b)(4) of such Act (29 U.S.C. 1024(b)(4)) is amended by striking “<quotedText>plan description</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>Section 106(a) of such Act (29 U.S.C. 1026(a)) is amended by striking “<quotedText>descriptions,</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>Section 107 of such Act (29 U.S.C. 1027) is amended by striking “<quotedText>description or</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>Section 108(2)(B) of such Act (29 U.S.C. 1028(2)(B)) is amended by striking “<quotedText>plan descriptions, annual reports,</quotedText>” and inserting “<quotedText>annual reports</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <content>Section 502(a)(6) of such Act (29 U.S.C. 1132(a)(6)) is amended by striking “<quotedText>or (5)</quotedText>” and inserting “<quotedText>(5), or (6)</quotedText>”.<page identifier="/us/stat/111/1063">111 STAT. 1063</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Technical Correction</inline>.—</heading><content>Section 1144(c) of the Social Security Act (42 U.S.C. 1320b–14(c)) is amended by redesignating paragraph (9) as paragraph (8).</content> </subsection> </section> <section> <num value="1504">SEC. 1504.</num> <heading>MODIFICATION OF 403(b) EXCLUSION ALLOWANCE TO CONFORM TO 415 MODIFICATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Definition of Compensation</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 403(b)(3) (defining includible compensation) is amended by adding at the end the following: “Such term includes— <quotedContent> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>any elective deferral (as defined in section 402(g)(3)), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>any amount which is contributed or deferred by the employer at the election of the employee and which is not includible in the gross income of the employee by reason of section 125 or 457.”.</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendment made by this subsection<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s403">26 USC 403 note</ref>.</p></sidenote> shall apply to years beginning after December 31, 1997.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Repeal of Rules in Section 415(e)</inline>.—</heading><content>The Secretary of the Treasury shall modify the regulations regarding the exclusion allowance under section 403(b)(2) of the Internal Revenue Code of 1986 to reflect the amendment made by section 1452(a) of the Small Business Job Protection Act of 1996. Such modification shall<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> take effect for years beginning after December 31, 1999.</content> </subsection> </section> <section> <num value="1505">SEC. 1505.</num> <heading>EXTENSION OF MORATORIUM ON APPLICATION OF CERTAIN NONDISCRIMINATION RULES TO STATE AND LOCAL GOVERNMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">General Nondiscrimination and Participation Rules</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Nondiscrimination requirements</inline>.—</heading><content>Section 401(a)(5) (relating to qualified pension, profit-sharing, and stock bonus plans) is amended by adding at the end the following: <quotedContent> <num value="G">“(G)</num> <heading><inline class="smallCaps">State and local governmental plans</inline>.—</heading><content>Paragraphs (3) and (4) shall not apply to a governmental plan (within the meaning of section 414(d)) maintained by a State or local government or political subdivision thereof (or agency or instrumentality thereof).”.</content> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Additional participation requirements</inline>.—</heading><content>Section 401(a)(26)(H) (relating to additional participation requirements) is amended to read as follows: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num> <heading><inline class="smallCaps">Exception for state and local governmental plans</inline>.—</heading><content>This paragraph shall not apply to a governmental plan (within the meaning of section 414(d)) maintained by a State or local government or political subdivision thereof (or agency or instrumentality thereof).”.</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Minimum participation standards.—Section 410(c)(2) (relating to application of participation standards to certain plans) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>A plan described in paragraph (1) shall be treated as meeting the requirements of this section for purposes of section 401(a), except that in the case of a plan described in subparagraph (B), (C), or (D) of paragraph (1), this paragraph shall apply only if such plan meets the requirements of section 401(a)(3) (as in effect on September 1, 1974).”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Participation and Discrimination Standards for Qualified Cash or Deferred Arrangements</inline>.—</heading><content>Section 401(k)(3) (relating to application of participation and discrimination standards) is amended by adding at the end the following:<page identifier="/us/stat/111/1064">111 STAT. 1064</page> <quotedContent> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <content>A governmental plan (within the meaning of section 414(d)) maintained by a State or local government or political subdivision thereof (or agency or instrumentality thereof) shall be treated as meeting the requirements of this paragraph.”.</content></subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Nondiscrimination Rules for Section 403(b) Plans</inline>.—</heading><content>Section 403(b)(12) (relating to nondiscrimination requirements) is amended by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">State and local governmental plans</inline>.—</heading><content>For purposes of paragraph (1)(D), the requirements of subparagraph (A)(i) (other than those relating to section 401(a)(17)) shall not apply to a governmental plan (within the meaning of section 414(d)) maintained by a State or local government or political subdivision thereof (or agency or instrumentality thereof).”.</content></subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s401">26 USC 401 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendments made by this section apply to taxable years beginning on or after the date of enactment of this Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Treatment for years beginning before date of enactment</inline>.—</heading><content>A governmental plan (within the meaning of section 414(d) of the Internal Revenue Code of 1986) maintained by a State or local government or political subdivision thereof (or agency or instrumentality thereof) shall be treated as satisfying the requirements of sections 401(a)(3), 401(a)(4), 401(a)(26), 401(k), 401(m), 403 (b)(1)(D) and (b)(12), and 410 of such Code for all taxable years beginning before the date of enactment of this Act.</content></paragraph> </subsection> </section> <section> <num value="1506">SEC. 1506.</num> <heading>CLARIFICATION OF CERTAIN RULES RELATING TO EMPLOYEE STOCK OWNERSHIP PLANS OF S CORPORATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Certain Cash Distributions Permitted</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Paragraph (2) of section 409(h) is amended by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Exception for certain plans restricted from distributing securities</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>A plan to which this subparagraph applies shall not be treated as failing to meet the requirements of this subsection or section 401(a) merely because it does not permit a participant to exercise the right described in paragraph (1)(A) if such plan provides that the participant entitled to a distribution has a right to receive the distribution in cash, except that such plan may distribute employer securities subject to a requirement that such securities may be resold to the employer under terms which meet the requirements of paragraph (1)(B).</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Applicable plans</inline>.—</heading><chapeau>This subparagraph shall apply to a plan which otherwise meets the requirements of this subsection or section 4975(e)(7) and which is established and maintained by—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>an employer whose charter or bylaws restrict the ownership of substantially all outstanding employer securities to employees or to a trust described in section 401(a), or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>an S corporation”.<page identifier="/us/stat/111/1065">111 STAT. 1065</page></content></subclause> </clause> </subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>Paragraph (2) of section 409(h), as in effect before the amendment made by paragraph (1), is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>A plan which</quotedText>” in the first sentence and inserting the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>A plan which”, and</content></subparagraph> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking the last sentence.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Certain Shareholder-Employees Not Treated as Owner-Employees</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>Amendment to 1986 code.—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>In general.—Section 4975(f) is amended by adding at the end the following new paragraph: <quotedContent> <num value="6">“(6)</num> <heading><inline class="smallCaps">Exemptions not to apply to certain transactions</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of a trust described in section 401(a) which is part of a plan providing contributions or benefits for employees some or all of whom are owner-employees (as defined in section 401(c)(3)), the exemptions provided by subsection (d) (other than paragraphs (9) and (12)) shall not apply to a transaction in which the plan directly or indirectly—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>lends any part of the corpus or income of the plan to,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>pays any compensation for personal services rendered to the plan to, or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>acquires for the plan any property from, or sells any property to,</content></clause> <continuation class="indent0 fontsize10">any such owner-employee, a member of the family (as defined in section 267(c)(4)) of any such owner-employee, or any corporation in which any such owner-employee owns, directly or indirectly, 50 percent or more of the total combined voting power of all classes of stock entitled to vote or 50 percent or more of the total value of shares of all classes of stock of the corporation.</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Special rules for shareholder-employees, etc</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of subparagraph (A), the following shall be treated as owner-employees:</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>A shareholder-employee.</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>A participant or beneficiary of an individual retirement plan (as defined in section 7701(a)(37)).</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>An employer or association of employees which establishes such an individual retirement plan under section 408(c).</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>Exception for certain transactions involving shareholder-employees.—Subparagraph (A)(iii) shall not apply to a transaction which consists of a sale of employer securities to an employee stock ownership plan (as defined in subsection (e)(7)) by a shareholder-employee, a member of the family (as defined in section 267(c)(4)) of such shareholderemployee, or a corporation in which such a shareholderemployee owns stock representing a 50 percent or greater interest described in subparagraph (A).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Shareholder-employee</inline>.—</heading><content>For purposes of subparagraph (B), the term ‘shareholder-employee’ means an employee or officer of an S corporation who owns (or <page identifier="/us/stat/111/1066">111 STAT. 1066</page>is considered as owning within the meaning of section 318(a)(1)) more than 5 percent of the outstanding stock of the corporation on any day during the taxable year of such corporation.”.</content></subparagraph> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading><chapeau>Section 4975(d) is amended—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by striking “<quotedText>The prohibitions</quotedText>” and inserting “<quotedText>Except as provided in subsection (f)(6), the prohibitions</quotedText>”, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking the last two sentences thereof.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Amendment to erisa</inline>.—</heading><content>Section 408(d) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1108(d)) is amended to read as follows: <quotedContent> <num value="d">“(d)</num><paragraph class="inline"><num value="1">(1)</num> <chapeau>Section 407(b) and subsections (b), (c), and (e) of this section shall not apply to a transaction in which a plan directly or indirectly—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A)</num> <content>lends any part of the corpus or income of the plan to,</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B)</num> <content>pays any compensation for personal services rendered to the plan to, or</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">“(C)</num> <content>acquires for the plan any property from, or sells any property to,</content></subparagraph> <continuation class="indent0 fontsize10">any person who is with respect to the plan an owner-employee (as defined in section 401(c)(3) of the Internal Revenue Code of 1986), a member of the family (as defined in section 267(c)(4) of such Code) of any such owner-employee, or any corporation in which any such owner-employee owns, directly or indirectly, 50 percent or more of the total combined voting power of all classes of stock entitled to vote or 50 percent or more of the total value of shares of all classes of stock of the corporation.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num><subparagraph class="inline"><num value="A">(A)</num> <continuation class="indent0 fontsize10">For purposes of paragraph (1), the following shall be treated as owner-employees:</continuation> <clause class="indent2 fontsize10"><num value="i">“(i)</num> <content>A shareholder-employee.</content></clause> <clause class="indent2 fontsize10"><num value="ii">“(ii)</num> <content>A participant or beneficiary of an individual retirement plan (as defined in section 7701(a)(37) of the Internal Revenue Code of 1986).</content></clause> <clause class="indent2 fontsize10"><num value="iii">“(iii)</num> <content>An employer or association of employees which establishes such an individual retirement plan under section 408(c) of such Code.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Paragraph (1)(C) shall not apply to a transaction which consists of a sale of employer securities to an employee stock ownership plan (as defined in section 407(d)(6)) by a shareholderemployee, a member of the family (as defined in section 267(c)(4) of such Code) of any such owner-employee, or a corporation in which such a shareholder-employee owns stock representing a 50 percent or greater interest described in paragraph (1).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>For purposes of paragraph (2), the term ‘shareholderemployee’ means an employee or officer of an S corporation (as defined in section 1361(a)(1) of such Code) who owns (or is considered as owning within the meaning of section 318(a)(1) of such Code) more than 5 percent of the outstanding stock of the corporation on any day during the taxable year of such corporation.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s409">26 USC 409 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to taxable years beginning after December 31, 1997.<page identifier="/us/stat/111/1067">111 STAT. 1067</page></content> </subsection> </section> <section> <num value="1507">SEC. 1507.</num> <heading>MODIFICATION OF 10-PERCENT TAX FOR NONDEDUCTIBLE CONTRIBUTIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 4972(c)(6)(B) (relating to exceptions) is amended to read as follows: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>so much of the contributions to 1 or more defined contribution plans which are not deductible when contributed solely because of section 404(a)(7) as does not exceed the greater of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the amount of contributions not in excess of 6 percent of compensation (within the meaning of section 404(a)) paid or accrued (during the taxable year for which the contributions were made) to beneficiaries under the plans, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>the sum of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the amount of contributions described in section 401(m)(4)(A), plus</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the amount of contributions described in section 402(g)(3)(A).”.</content></subclause> </clause> </subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4972">26 USC 4972 note</ref>.</p></sidenote> shall apply to taxable years beginning after December 31, 1997.</content> </subsection> </section> <section> <num value="1508">SEC. 1508.</num> <heading>MODIFICATION OF FUNDING REQUIREMENTS FOR CERTAIN PLANS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Funding Rules for Certain Plans</inline>.—</heading><content>Section 769 of the Retirement Protection Act of 1994 is amended by adding at the<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s412">26 USC 412 note</ref>.</p></sidenote> end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Transition Rules for Certain Plans</inline>.—<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote></heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of a plan that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>was not required to pay a variable rate premium for the plan year beginning in 1996;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>has not, in any plan year beginning after 1995 and before 2009, merged with another plan (other than a plan sponsored by an employer that was in 1996 within the controlled group of the plan sponsor); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>is sponsored by a company that is engaged primarily in the interurban or interstate passenger bus service,</content></subparagraph> <continuation class="indent0 fontsize10">the transition rules described in paragraph (2) shall apply for any plan year beginning after 1996 and before 2010.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Transition rules</inline>.—</heading><chapeau>The transition rules described in this paragraph are as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>For purposes of section 412(1)(9)(A) of the Internal Revenue Code of 1986 and section 302(d)(9)(A) of the Employee Retirement Income Security Act of 1974—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the funded current liability percentage for any plan year beginning after 1996 and before 2005 shall be treated as not less than 90 percent if for such plan year the funded current liability percentage is at least 85 percent, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the funded current liability percentage for any plan year beginning after 2004 and before 2010 shall be treated as not less than 90 percent if for such plan year the funded current liability percentage satisfies the minimum percentage determined according to the following table:<page identifier="/us/stat/111/1068">111 STAT. 1068</page> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <thead> <tr> <th style="text-align:left"><b xmlns="http://schemas.gpo.gov/xml/uslm">“In the case of a plan year beginning in:</b></th> <th style="text-align:right"><b xmlns="http://schemas.gpo.gov/xml/uslm">The minimum percentage is:</b></th> </tr> </thead> <tbody> <tr> <td style="text-align:left" leaders="yes">2005</td> <td style="text-align:right">86 percent</td> </tr> <tr> <td style="text-align:left" leaders="yes">2006</td> <td style="text-align:right">87 percent</td> </tr> <tr> <td style="text-align:left" leaders="yes">2007</td> <td style="text-align:right">88 percent</td> </tr> <tr> <td style="text-align:left" leaders="yes">2008</td> <td style="text-align:right">89 percent</td> </tr> <tr> <td style="text-align:left" leaders="yes">2009 and thereafter</td> <td style="text-align:right">90 percent.</td> </tr> </tbody> </table> </content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>Sections 412(c)(7)(E)(i)(I) of such Code and 302(c)(7)(E)(i)(I) of such Act shall be applied—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>by substituting ‘85 percent’ for ‘90 percent’ for plan years beginning after 1996 and before 2005, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>by substituting the minimum percentage specified in the table contained in subparagraph (A)(ii) for ‘90 percent’ for plan years beginning after 2004 and before 2010.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <chapeau>In the event the funded current liability percentage of a plan is less than 85 percent for any plan year beginning after 1996 and before 2005, the transition rules under subparagraphs (A) and (B) shall continue to apply to the plan if contributions for such a plan year are made to the plan in an amount equal to the lesser of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the amount necessary to result in a funded current liability percentage of 85 percent, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>the greater of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>2 percent of the plan’s current liability as of the beginning of such plan year, or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the amount necessary to result in a funded current liability percentage of 80 percent as of the end of such plan year.</content></subclause> <continuation class="indent0 fontsize10"><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote>For the plan year beginning in 2005 and for each of the 3 succeeding plan years, the transition rules under subparagraphs (A) and (B) shall continue to apply to the plan for such plan year only if contributions to the plan for such plan year equal at least the expected increase in current liability due to benefits accruing during such plan year.”.</continuation> </clause> </subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s412">26 USC 412 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section shall apply to plan years beginning after December 31, 1996.</content> </subsection> </section> <section> <num value="1509">SEC. 1509.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s402">26 USC 402 note</ref>.</p></sidenote> <heading>CLARIFICATION OF DISQUALIFICATION RULES RELATING TO ACCEPTANCE OF ROLLOVER CONTRIBUTIONS.</heading> <content>The Secretary of the Treasury or his delegate shall clarify that, under the Internal Revenue Service regulations protecting pension plans from disqualification by reason of the receipt of invalid rollover contributions under section 402(c) of the Internal Revenue Code of 1986, in order for the administrator of the plan receiving any such contribution to reasonably conclude that the contribution is a valid rollover contribution it is not necessary for the distributing plan to have a determination letter with respect to its status as a qualified plan under section 401 of such Code.</content> </section> <section> <num value="1510">SEC. 1510.</num> <heading>NEW TECHNOLOGIES IN RETIREMENT PLANS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s401">26 USC 401 note</ref>.</p></sidenote> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Not later than December 31, 1998, the Secretary of the Treasury and the Secretary of Labor shall each issue guidance which is designed to—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>interpret the notice, election, consent, disclosure, and time requirements (and related recordkeeping requirements) <page identifier="/us/stat/111/1069">111 STAT. 1069</page>under the Internal Revenue Code of 1986 and the Employee Retirement Income Security Act of 1974 relating to retirement plans as applied to the use of new technologies by plan sponsors and administrators while maintaining the protection of the rights of participants and beneficiaries, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>clarify the extent to which writing requirements under the Internal Revenue Code of 1986 relating to retirement plans shall be interpreted to permit paperless transactions.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Applicability of final Regulations</inline>.—</heading><content>Final regulations applicable to the guidance regarding new technologies described in subsection (a) shall not be effective until the first plan year beginning at least 6 months after the issuance of such final regulations.</content> </subsection> </section> </subtitle> <subtitle> <num value="B">Subtitle B—</num><heading>Other Provisions Relating to Pensions and Employee Benefits</heading> <section> <num value="1521">SEC. 1521.</num> <heading>INCREASE IN CURRENT LIABILITY FUNDING LIMIT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Amendment to 1986 Code</inline>.—</heading><chapeau>Section 412(c)(7) (relating to full-funding limitation) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>150 percent</quotedText>” in subparagraph (A)(i)(I) and inserting “<quotedText>the applicable percentage</quotedText>”, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <heading><inline class="smallCaps">Applicable percentage</inline>.—</heading><content>For purposes of subparagraph (A)(i)(I), the applicable percentage shall be determined in accordance with the following table: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <thead> <tr> <th style="text-align:left"><b xmlns="http://schemas.gpo.gov/xml/uslm">“In the case of any plan year beginning in—</b></th> <th style="text-align:right"><b xmlns="http://schemas.gpo.gov/xml/uslm">The applicable percentage is—</b></th> </tr> </thead> <tbody> <tr> <td style="text-align:left" leaders="yes">1999 or 2000</td> <td style="text-align:right">155</td> </tr> <tr> <td style="text-align:left" leaders="yes">2001 or 2002</td> <td style="text-align:right">160</td> </tr> <tr> <td style="text-align:left" leaders="yes">2003 or 2004</td> <td style="text-align:right">165</td> </tr> <tr> <td style="text-align:left" leaders="yes">2005 and succeeding years</td> <td style="text-align:right">170”.</td> </tr> </tbody> </table> </content></subparagraph> </quotedContent> </content></subparagraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Amendment to ERISA</inline>.—</heading><chapeau>Section 302(c)(7) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1082(c)(7)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>150 percent</quotedText>” in subparagraph (A)(i)(I) and inserting “<quotedText>the applicable percentage</quotedText>”, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <heading><inline class="smallCaps">Applicable percentage</inline>.—</heading><content>For purposes of subparagraph (A)(i)(I), the applicable percentage shall be determined in accordance with the following table: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <thead> <tr> <th style="text-align:left"><b xmlns="http://schemas.gpo.gov/xml/uslm">“In the case of any plan year beginning in—</b></th> <th style="text-align:right"><b xmlns="http://schemas.gpo.gov/xml/uslm">The applicable percentage is—</b></th> </tr> </thead> <tbody> <tr> <td style="text-align:left" leaders="yes">1999 or 2000</td> <td style="text-align:right">155</td> </tr> <tr> <td style="text-align:left" leaders="yes">2001 or 2002</td> <td style="text-align:right">160</td> </tr> <tr> <td style="text-align:left" leaders="yes">2003 or 2004</td> <td style="text-align:right">165</td> </tr> <tr> <td style="text-align:left" leaders="yes">2005 and succeeding years</td> <td style="text-align:right">170”.</td> </tr> </tbody> </table> </content></subparagraph> </quotedContent> </content></subparagraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Special Amortization Rule</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Code amendment</inline>.—</heading><content>Section 412(b)(2) is amended by striking “<quotedText>and</quotedText>” at the end of subparagraph (C), by striking the period at the end of subparagraph (D) and inserting , and”, and by inserting after subparagraph (D) the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>the amount necessary to amortize in equal annual installments (until fully amortized) over a period of 20 years the contributions which would be required to be <page identifier="/us/stat/111/1070">111 STAT. 1070</page>made under the plan but for the provisions of subsection (c)(7)(A)(i)(I)”.</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">ERISA amendment</inline>.—</heading><content>Section 302(b)(2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1082(b)(2)) is amended by striking “<quotedText>and</quotedText>” at the end of subparagraph (C), by striking the period at the end of subparagraph (D) and inserting “<quotedText>, and</quotedText>”, and by inserting after subparagraph (D) the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>the amount necessary to amortize in equal annual installments (until fully amortized) over a period of 20 years the contributions which would be required to be made under the plan but for the provisions of subsection (c)(7)(A)(i)(I).”.</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Section 412(c)(7)(D) is amended by adding “<quotedText>and</quotedText>” at the end of clause (i), by striking and” at the end of clause (ii) and inserting a period, and by striking clause (iii).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Section 302(c)(7)(D) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1082(c)(7)(D)) is amended by adding “<quotedText>and</quotedText>” at the end of clause (i), by striking “<quotedText>, and</quotedText>” at the end of clause (ii) and inserting a period, and by striking clause (iii).</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s412">26 USC 412 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendments made by this section shall apply to plan years beginning after December 31, 1998.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Special rule for unamortized balances under existing law</inline>.—</heading><chapeau>The unamortized balance (as of the close of the plan year preceding the plan’s first year beginning in 1999) of any amortization base established under section 412(c)(7)(D)(iii) of such Code and section 302(c)(7)(D)(iii) of such Act (as repealed by subsection (c)(3)) for any plan year beginning before 1999 shall be amortized in equal annual installments (until fully amortized) over a period of years equal to the excess of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>20 years, over</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>the number of years since the amortization base was established.</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="1522">SEC. 1522.</num> <heading>SPECIAL RULES FOR CHURCH PLANS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 414(e)(5) (relating to special rules for chaplains and self-employed ministers) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>not eligible to participate</quotedText>” in subparagraph (C) and inserting “<quotedText>not otherwise participating</quotedText>”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Exclusion</inline>.—</heading><content>In the case of a contribution to a church plan made on behalf of a minister described in subparagraph (A)(i)(II), such contribution shall not be included in the gross income of the minister to the extent that such contribution would not be so included if the minister was an employee of a church.”.</content></subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s414">26 USC 414 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to years beginning after December 31, 1997.</content> </subsection> </section> <section> <num value="1523">SEC. 1523.</num> <heading>REPEAL OF APPLICATION OF UNRELATED BUSINESS INCOME TAX TO ESOPS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 512(e) is amended by adding at the end the following new paragraph:<page identifier="/us/stat/111/1071">111 STAT. 1071</page> <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Exception for esops</inline>.—</heading><content>This subsection shall not apply to employer securities (within the meaning of section 409(1)) held by an employee stock ownership plan described in section 4975(e)(7).”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s512">26 USC 512 note</ref>.</p></sidenote> shall apply to taxable years beginning after December 31, 1997.</content> </subsection> </section> <section> <num value="1524">SEC. 1524.</num> <heading>DIVERSIFICATION OF SECTION 401 (k) PLAN INVESTMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Limitations on Investment in Employer Securities and Employer Real Property by Cash or Deferred Arrangements</inline>.—</heading><content>Section 407(b) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1107(b)) is amended by redesignating paragraph (2) as paragraph (3) and by inserting after paragraph (1) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num><subparagraph class="inline"><num value="A">(A)</num> <chapeau>If this paragraph applies to an eligible individual account plan, the portion of such plan which consists of applicable elective deferrals (and earnings allocable thereto) shall be treated as a separate plan—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>which is not an eligible individual account plan, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>to which the requirements of this section apply.</content></clause> </subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B)</num><clause class="inline"><num value="i">(i)</num> <chapeau>This paragraph shall apply to any eligible individual<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> account plan if any portion of the plan’s applicable elective deferrals (or earnings allocable thereto) are required to be invested in qualifying employer securities or qualifying employer real property or both—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>pursuant to the terms of the plan, or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>at the direction of a person other than the participant on whose behalf such elective deferrals are made to the plan (or a beneficiary).</content></subclause> </clause> <clause class="indent0 fontsize10"><num value="ii">“(ii)</num> <content>This paragraph shall not apply to an individual account plan for a plan year if, on the last day of the preceding plan year, the fair market value of the assets of all individual account plans maintained by the employer equals not more than 10 percent of the fair market value of the assets of all pension plans (other than multiemployer plans) maintained by the employer.</content></clause> <clause class="indent0 fontsize10"><num value="iii">“(iii)</num> <content>This paragraph shall not apply to an individual account plan that is an employee stock ownership plan as defined in section 4975(e)(7) of the Internal Revenue Code of 1986.</content></clause> <clause class="indent0 fontsize10"><num value="iv">“(iv)</num> <content>This paragraph shall not apply to an individual account plan if, pursuant to the terms of the plan, the portion of any employee’s applicable elective deferrals which is required to be invested in qualifying employer securities and qualifying employer real property for any year may not exceed 1 percent of the employee’s compensation which is taken into account under the plan in determining the maximum amount of the employee’s applicable elective deferrals for such year.</content></clause> </subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">“(C)</num> <content>For purposes of this paragraph, the term ‘applicable elective deferral’ means any elective deferral (as defined in section 402(g)(3)(A) of the Internal Revenue Code of 1986) which is made pursuant to a qualified cash or deferred arrangement as defined in section 401(k) of the Internal Revenue Code of 1986.”.<page identifier="/us/stat/111/1072">111 STAT. 1072</page></content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s1107">29 USC 1107 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to elective deferrals for plan years beginning after December 31, 1998.</content> </subsection> </section> <section> <num value="1525">SEC. 1525.</num> <heading>SECTION 401 (K) PLANS FOR CERTAIN IRRIGATION AND DRAINAGE ENTITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Subparagraph (B) of section 401(k)(7) (relating to rural cooperative plan) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>and</quotedText>” at the end of clause (iii), by redesignating clause (iv) as clause (v), and by inserting after clause (iii) the following new clause: <quotedContent> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <chapeau>any organization which—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>is a mutual irrigation or ditch company described in section 501(c)(12) (without regard to the 85 percent requirement thereof), or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>is a district organized under the laws of a State as a municipal corporation for the purpose of irrigation, water conservation, or drainage, and”, and</content></subclause> </clause> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in clause (v), as so redesignated, by striking “<quotedText>or (iii)</quotedText>” and inserting “<quotedText>, (iii), or (iv)</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s401">26 USC 401 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by subsection (a) shall apply to years beginning after December 31, 1997.</content> </subsection> </section> <section> <num value="1526">SEC. 1526.</num> <heading>PORTABILITY OF PERMISSIVE SERVICE CREDIT UNDER GOVERNMENTAL PENSION PLANS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 415 (relating to limitations on benefits and contributions under qualified plans) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="n">“(n)</num> <heading><inline class="smallCaps">Special Rules Relating to Purchase of Permissive Service Credit</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>If an employee makes 1 or more contributions to a defined benefit governmental plan (within the meaning of section 414(d)) to purchase permissive service credit under such plan, then the requirements of this section shall be treated as met only if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the requirements of subsection (b) are met, determined by treating the accrued benefit derived from all such contributions as an annual benefit for purposes of subsection (b), or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the requirements of subsection (c) are met, determined by treating all such contributions as annual additions for purposes of subsection (c).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Application of limit</inline>.—</heading><chapeau>For purposes of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>applying paragraph (1)(A), the plan shall not fail to meet the reduced limit under subsection (b)(2)(C) solely by reason of this subsection, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>applying paragraph (1)(B), the plan shall not fail to meet the percentage limitation under subsection (c)(1)(B) solely by reason of this subsection.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Permissive service credit</inline>.—</heading><chapeau>For purposes of this subsection—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘permissive service credit’ means service credit—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>recognized by the governmental plan for purposes of calculating a participant’s benefit under the plan,<page identifier="/us/stat/111/1073">111 STAT. 1073</page></content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>which such participant has not received under such governmental plan, and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>which such participant may receive only by making a voluntary additional contribution, in an amount determined under such governmental plan, which does not exceed the amount necessary to fund the benefit attributable to such service credit.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Limitation on nonqualified service credit</inline>.—</heading><chapeau>A plan shall fail to meet the requirements of this section if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>more than 5 years of permissive service credit attributable to nonqualified service are taken into account for purposes of this subsection, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>any permissive service credit attributable to nonqualified service is taken into account under this subsection before the employee has at least 5 years of participation under the plan.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Nonqualified service</inline>.—</heading><chapeau>For purposes of subparagraph (B), the term ‘nonqualified service’ means service for which permissive service credit is allowed other than—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>service (including parental, medical, sabbatical, and similar leave) as an employee of the Government of the United States, any State or political subdivision thereof, or any agency or instrumentality of any of the foregoing (other than military service or service for credit which was obtained as a result of a repayment described in subsection (k)(3)),</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>service (including parental, medical, sabbatical, and similar leave) as an employee (other than as an employee described in clause (i)) of an educational organization described in section 170(b)(1)(A)(ii) which is a public, private, or sectarian school which provides elementary or secondary education (through grade 12), as determined under State law,</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>service as an employee of an association of employees who are described in clause (i), or</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>military service (other than qualified military service under section 414(u)) recognized by such governmental plan.</content></clause> <continuation class="indent0 fontsize10">In the case of service described in clauses (i), (ii), or (iii), such service will be nonqualified service if recognition of such service would cause a participant to receive a retirement benefit for the same service under more than one plan.”.</continuation> </subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Special Rule for Repayment of Cashouts</inline>.—</heading><content>Section 415(k) (relating to special rules) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Repayments of cashouts under governmental plans</inline>.—</heading><content>In the case of any repayment of contributions (including interest thereon) to the governmental plan with respect to an amount previously refunded upon a forfeiture of service credit under the plan or under another governmental plan maintained by a State or local government employer within the same State, any such repayment shall not be taken into account for purposes of this section.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s415">26 USC 415 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Dates</inline>.—<page identifier="/us/stat/111/1074">111 STAT. 1074</page></heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendments made by this section shall apply to permissive service credit contributions made in years beginning after December 31, 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Transition rule</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In the case of an eligible participant in a governmental plan (within the meaning of section 414(d) of the Internal Revenue Code of 1986), the limitations of section 415(c)(1) of such Code shall not be applied to reduce the amount of permissive service credit which may be purchased to an amount less than the amount which was allowed to be purchased under the terms of the plan as in effect on the date of the enactment of this Act.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Eligible participant</inline>.—</heading><content>For purposes of subparagraph (A), an eligible participant is an individual who first became a participant in the plan before the first plan year beginning after the last day of the calendar year in which the next regular session (following the date of the enactment of this Act) of the governing body with authority to amend the plan ends.</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="1527">SEC. 1527.</num> <heading>REMOVAL OF DOLLAR LIMITATION ON BENEFIT PAYMENTS FROM A DEFINED BENEFIT PLAN MAINTAINED FOR CERTAIN POLICE AND FIRE EMPLOYEES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subparagraph (G) of section 415(b)(2) is amended by striking “<quotedText>participant—</quotedText>” and all that follows and inserting “<quotedText>participant, subparagraph (C) of this paragraph shall not apply.</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s415">26 USC 415 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall apply to years beginning after December 31, 1996.</content> </subsection> </section> <section> <num value="1528">SEC. 1528.</num> <heading>SURVIVOR BENEFITS FOR PUBLIC SAFETY OFFICERS KILLED IN THE LINE OF DUTY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 101 (relating to certain death benefits) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Survivor Benefits Attributable to Service by a Public Safety Officer who is Killed in the Line of Duty</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Gross income shall not include any amount paid as a survivor annuity on account of the death of a public safety officer (as such term is defined in section 1204 of the Omnibus Crime Control and Safe Streets Act of 1968) killed in the line of duty—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>if such annuity is provided, under a governmental plan which meets the requirements of section 401(a), to the spouse (or a former spouse) of the public safety officer or to a child of such officer; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>to the extent such annuity is attributable to such officer’s service as a public safety officer.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Exceptions</inline>.—</heading><chapeau>Paragraph (1) shall not apply with respect to the death of any public safety officer if, as determined in accordance with the provisions of the Omnibus Crime Control and Safe Streets Act of 1968—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the death was caused by the intentional misconduct of the officer or by such officer’s intention to bring about such officer’s death;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the officer was voluntarily intoxicated (as defined in section 1204 of such Act) at the time of death;<page identifier="/us/stat/111/1075">111 STAT. 1075</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>the officer was performing such officer’s duties in a grossly negligent manner at the time of death; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>the payment is to an individual whose actions were a substantial contributing factor to the death of the officer.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s101">26 USC 101 note</ref>.</p></sidenote> shall apply to amounts received in taxable years beginning after December 31, 1996, with respect to individuals dying after such date.</content> </subsection> </section> <section> <num value="1529">SEC. 1529.</num> <heading>TREATMENT OF CERTAIN DISABILITY BENEFITS RECEIVED BY FORMER POLICE OFFICERS OR FIREFIGHTERS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><chapeau>For purposes of determining whether any amount to which this section applies is excludable from gross income under section 104(a)(1) of the Internal Revenue Code of 1986, the following conditions shall be treated as personal injuries or sickness in the course of employment:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Heart disease.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Hypertension.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Amounts To Which Section Applies</inline>.—</heading><chapeau>This section shall apply to any amount—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>which is payable—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>to an individual (or to the survivors of an individual) who was a full-time employee of any police department or fire department which is organized and operated by a State, by any political subdivision thereof, or by any agency or instrumentality of a State or political subdivision thereof, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>under a State law (as amended on May 19, 1992) which irrebuttably presumed that heart disease and hypertension are work-related illnesses but only for employees separating from service before July 1, 1992; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>which was received in calendar year 1989, 1990, or 1991.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Waiver of Statute of Limitations</inline>—</heading><content>If, on the date of the enactment of this Act (or at any time within the 1-year period beginning on such date of enactment), credit or refund of any overpayment of tax resulting from the provisions of this section is barred by any law or rule of law (including res judicata), then credit or refund of such overpayment shall, nevertheless, be allowed or made if claim therefore is filed before the date 1 year after such date of enactment.</content> </subsection> </section> <section> <num value="1530">SEC. 1530.</num> <heading>GRATUITOUS TRANSFERS FOR THE BENEFIT OF EMPLOYEES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subparagraph (C) of section 664(d)(1) and subparagraph (C) of section 664(d)(2) are each amended by striking the period at the end thereof and inserting “<quotedText>or, to the extent the remainder interest is in qualified employer securities (as defined in subsection (g)(4)), all or part of such securities are to be transferred to an employee stock ownership plan (as defined in section 4975(e)(7)) in a qualified gratuitous transfer (as defined by subsection (g)).</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Qualified Gratuitous Transfer Defined</inline>.—</heading><content>Section 664 is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Qualified Gratuitous Transfer of Qualified Employer Securities</inline>.—<page identifier="/us/stat/111/1076">111 STAT. 1076</page></heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of this section, the term ‘qualified gratuitous transfer’ means a transfer of qualified employer securities to an employee stock ownership plan (as defined in section 4975(e)(7)) but only to the extent that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the securities transferred previously passed from a decedent dying before January 1, 1999, to a trust described in paragraph (1) or (2) of subsection (d),</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>no deduction under section 404 is allowable with respect to such transfer,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>such plan contains the provisions required by paragraph (3),</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>such plan treats such securities as being attributable to employer contributions but without regard to the limitations otherwise applicable to such contributions under section 404, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>the employer whose employees are covered by the plan described in this paragraph files with the Secretary a verified written statement consenting to the application of sections 4978 and 4979A with respect to such employer.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Exception</inline>.—</heading><chapeau>The term ‘qualified gratuitous transfer’ shall not include a transfer of qualified employer securities to an employee stock ownership plan unless—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>such plan was in existence on August 1, 1996,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>at the time of the transfer, the decedent and members of the decedent’s family (within the meaning of section 2032A(e)(2)) own (directly or through the application of section 318(a)) no more than 10 percent of the value of the stock of the corporation referred to in paragraph (4), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>immediately after the transfer, such plan owns (after the application of section 318(a)(4)) at least 60 percent of the value of the outstanding stock of the corporation.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Plan requirements</inline>.—</heading><chapeau>A plan contains the provisions required by this paragraph if such plan provides that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the qualified employer securities so transferred are allocated to plan participants in a manner consistent with section 401(a)(4),</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>plan participants are entitled to direct the plan as to the manner in which such securities which are entitled to vote and are allocated to the account of such participant are to be voted,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>an independent trustee votes the securities so transferred which are not allocated to plan participants,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>each participant who is entitled to a distribution from the plan has the rights described in subparagraphs (A) and (B) of section 409(h)(1),</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>such securities are held in a suspense account under the plan to be allocated each year, up to the limitations under section 415(c), after first allocating all other annual additions for the limitation year, up to the limitations under sections 415 (c) and (e), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>on termination of the plan, all securities so transferred which are not allocated to plan participants as of such termination are to be transferred to, or for the use of, an organization described in section 170(c).<page identifier="/us/stat/111/1077">111 STAT. 1077</page></content></subparagraph> <continuation class="indent0 fontsize10">For purposes of the preceding sentence, the term ‘independent trustee’ means any trustee who is not a member of the family (within the meaning of section 2032A(e)(2)) of the decedent or a 5-percent shareholder. A plan shall not fail to be treated as meeting the requirements of section 401(a) by reason of meeting the requirements of this subsection.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Qualified employer securities</inline>.—</heading><chapeau>For purposes of this section, the term ‘qualified employer securities’ means employer securities (as defined in section 409(1)) which are issued by a domestic corporation—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>which has no outstanding stock which is readily tradable on an established securities market, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>which has only 1 class of stock.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Treatment of securities allocated by employee stock ownership plan to persons related to decedent or 5-percent shareholders</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>If any portion of the assets of the plan attributable to securities acquired by the plan in a qualified gratuitous transfer are allocated to the account of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>any person who is related to the decedent (within the meaning of section 267(b)) or a member of the decedent’s family (within the meaning of section 2032A(e)(2)), or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>any person who, at the time of such allocation or at any time during the 1-year period ending on the date of the acquisition of qualified employer securities by the plan, is a 5-percent shareholder of the employer maintaining the plan,</content></clause> <continuation class="indent0 fontsize10">the plan shall be treated as having distributed (at the time of such allocation) to such person or shareholder the amount so allocated.</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>5-percent shareholder.—For purposes of subparagraph (A), the term ‘5-percent shareholder’ means any person who owns (directly or through the application of section 318(a)) more than 5 percent of the outstanding stock of the corporation which issued such qualified employer securities or of any corporation which is a member of the same controlled group of corporations (within the meaning of section 409(l)(4)) as such corporation. For purposes of the preceding sentence, section 318(a) shall be applied without regard to the exception in paragraph (2)(B)(i) thereof.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Cross reference</inline>.—</heading> <content class="indent0 fontsize10"><b>“For excise tax on allocations described in subparagraph (A), see section 4979A.</b></content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Tax on failure to transfer unallocated securities to charity on termination of plan</inline>.—</heading><chapeau>If the requirements of paragraph (3)(F) are not met with respect to any securities, there is hereby imposed a tax on the employer maintaining the plan in an amount equal to the sum of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the amount of the increase in the tax which would be imposed by chapter 11 if such securities were not transferred as described in paragraph (1), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>interest on such amount at the underpayment rate under section 6621 (and compounded daily) from the <page identifier="/us/stat/111/1078">111 STAT. 1078</page>due date for filing the return of the tax imposed by chapter 11.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Section 401(a)(1) is amended by inserting “<quotedText>or by a charitable remainder trust pursuant to a qualified gratuitous transfer (as defined in section 664(g)(1)),</quotedText>” after “stock bonus plans),”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Section 404(a)(9) is amended by inserting after subparagraph (B) the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>A qualified gratuitous transfer (as defined in section 664(g)(1)) shall have no effect on the amount or amounts otherwise deductible under paragraph (3) or (7) or under this paragraph.”.</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Section 415(c)(6) is amended by adding at the end thereof the following new sentence: <quotedContent> <p class="indent0 fontsize10">“The amount of any qualified gratuitous transfer (as defined in section 664(g)(1)) allocated to a participant for any limitation year shall not exceed the limitations imposed by this section, but such amount shall not be taken into account in determining whether any other amount exceeds the limitations imposed by this section.”.</p> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <chapeau>Section 415(e) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by redesignating paragraph (6) as paragraph (7), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by inserting after paragraph (5) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Special rule for qualified gratuitous transfers</inline>.—</heading><content>Any qualified gratuitous transfer of qualified employer securities (as defined by section 664(g)) shall not be taken into account in calculating, and shall not be subject to, the limitations provided in this subsection.”.</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>Subparagraph (B) of section 664(d)(1) and subparagraph (B) of section 664(d)(2) are each amended by inserting “<quotedText>and other than qualified gratuitous transfers described in subparagraph (C)</quotedText>” after “subparagraph (A)”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>Paragraph (4) of section 674(b) is amended by inserting before the period “or to an employee stock ownership plan (as defined in section 4975(e)(7)) in a qualified gratuitous transfer (as defined in section 664(g)(1))”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <chapeau>Section 2055(a) is amended—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by striking “<quotedText>or</quotedText>” at the end of paragraph (3),</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking the period at the end of paragraph (4) and inserting or”, and</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>by inserting after paragraph (4) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>to an employee stock ownership plan if such transfer qualifies as a qualified gratuitous transfer of qualified employer securities within the meaning of section 664(g).”.</content></paragraph> </quotedContent> </content></clause> </paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8)</num> <content>Paragraph (8) of section 2056(b) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <heading><inline class="smallCaps">Special rule for charitable remainder trusts</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If the surviving spouse of the decedent is the only beneficiary of a qualified charitable remainder trust who is not a charitable beneficiary nor an ESOP beneficiary, paragraph (1) shall not apply to any interest in such trust which passes or has passed from the decedent to such surviving spouse.<page identifier="/us/stat/111/1079">111 STAT. 1079</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of subparagraph (A)—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">Charitable beneficiary</inline>.—</heading><content>The term ‘charitable beneficiary’ means any beneficiary which is an organization described in section 170(c).</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">ESOP beneficiary</inline>.—</heading><content>The term ‘ESOP beneficiary’ means any beneficiary which is an employee stock ownership plan (as defined in section 4975(e)(7)) that holds a remainder interest in qualified employer securities (as defined in section 664(g)(4)) to be transferred to such plan in a qualified gratuitous transfer (as defined in section 664(g)(1)).</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Qualified charitable remainder trust</inline>.—</heading><content>The term ‘qualified charitable remainder trust’ means a charitable remainder annuity trust or a charitable remainder unitrust (described in section 664).”.</content></clause> </subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9)</num> <content>Section 4947(b) is amended by inserting after paragraph (3) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Section 507</inline>.—</heading><content>The provisions of section 507(a) shall not apply to a trust which is described in subsection (a)(2) by reason of a distribution of qualified employer securities (as defined in section 664(g)(4)) to an employee stock ownership plan (as defined in section 4975(e)(7)) in a qualified gratuitous transfer (as defined by section 664(g)).”.</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10)</num> <content>The last sentence of section 4975(e)(7) is amended by inserting “<quotedText>and section 664(g)</quotedText>” after “section 409(n)”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="11">(11)</num> <chapeau>Subsection (a) of section 4978 is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by inserting “<quotedText>or acquired any qualified employer securities in a qualified gratuitous transfer to which section 664(g) applied</quotedText>” after “section 1042 applied”, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by inserting before the comma at the end of paragraph (2) “60 percent of the total value of all employer securities as of such disposition in the case of any qualified employer securities acquired in a qualified gratuitous transfer to which section 664(g) applied)”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="12">(12)</num> <chapeau>Paragraph (2) of section 4978(b) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by inserting “<quotedText>or acquired in the qualified gratuitous transfer to which section 664(g) applied</quotedText>” after “section 1042 applied”, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by inserting “<quotedText>or to which section 664(g) applied</quotedText>” after “section 1042 applied” in subparagraph (A) thereof.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="13">(13)</num> <content>Subsection (c) of section 4978 is amended by striking “<quotedText>written statement</quotedText>” and all that follows and inserting “<quotedText>written statement described in section 664(g)(1)(E) or in section 1042(b)(3) (as the case may be).</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="14">(14)</num> <content>Paragraph (2) of section 4978(e) is amended by striking the period and inserting “<quotedText>; except that such section shall be applied without regard to subparagraph (B) thereof for purposes of applying this section and section 4979A with respect to securities acquired in a qualified gratuitous transfer (as defined in section 664(g)(1)).</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="15">(15)</num> <content>Subsection (a) of section 4979A is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Imposition of Tax</inline>.—</heading><chapeau>If—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>there is a prohibited allocation of qualified securities by any employee stock ownership plan or eligible worker-owned cooperative, or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>there is an allocation described in section 664(g)(5)(A), <page identifier="/us/stat/111/1080">111 STAT. 1080</page>there is hereby imposed a tax on such allocation equal to 50 percent of the amount involved.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="16">(16)</num> <content>Subsection (c) of section 4979A is amended to read as follows: <quotedContent> <subsection><num value="c">“(c)</num> <heading><inline class="smallCaps">Liability for Tax</inline>.—</heading><chapeau>The tax imposed by this section shall be paid by—</chapeau> <paragraph><num value="1">“(1)</num> <content>the employer sponsoring such plan, or</content></paragraph> <paragraph><num value="2">“(2)</num> <content>the eligible worker-owned cooperative,</content></paragraph> <continuation class="indent0 fontsize10">which made the written statement described in section 664(g)(1)(E) or in section 1042(b)(3)(B) (as the case may be).”.</continuation></subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="17">(17)</num> <content>Section 4979A is amended by redesignating subsection (d) as subsection (e) and by inserting after subsection (c) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Special Statute of Limitations for Tax Attributable to Certain Allocations</inline>.—</heading><chapeau>The statutory period for the assessment of any tax imposed by this section on an allocation described in subsection (a)(2) of qualified employer securities shall not expire before the date which is 3 years from the later of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the 1st allocation of such securities in connection with a qualified gratuitous transfer (as defined in section 664(g)(1)), or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the date on which the Secretary is notified of the allocation described in subsection (a)(2).”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s401">26 USC 401 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to transfers made by trusts to, or for the use of, an employee stock ownership plan after the date of the enactment of this Act.</content> </subsection> </section> </subtitle> <subtitle> <num value="C">Subtitle C—</num><heading>Provisions Relating to Certain Health Acts</heading> <section> <num value="1531">SEC. 1531.</num> <heading>AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986 TO IMPLEMENT THE NEWBORNS’ AND MOTHERS’ HEALTH PROTECTION ACT OF 1996 AND THE MENTAL HEALTH PARITY ACT OF 1996.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Subtitle K is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking all that precedes section 9801 and inserting the following: <quotedContent> <subtitle> <num value="K">“Subtitle K—</num><heading>Group Health Plan Requirements</heading> <toc> <referenceItem role="chapter"><designator>“Chapter 100.</designator> <label>Group health plan requirements.</label></referenceItem> </toc> <chapter> <num value="100">“CHAPTER 100—</num><heading>GROUP HEALTH PLAN REQUIREMENTS</heading> <toc> <referenceItem role="subchapter"><designator>“Subchapter A.</designator> <label>Requirements relating to portability, access, and renewability</label></referenceItem> <referenceItem role="subchapter"><designator>“Subchapter B.</designator> <label>Other requirements.</label></referenceItem> <referenceItem role="subchapter"><designator>“Subchapter C.</designator> <label>General provisions.<page identifier="/us/stat/111/1081">111 STAT. 1081</page></label></referenceItem> </toc> <subchapter> <num value="A">“Subchapter A—</num><heading>Requirements Relating to Portability, Access, and Renewability</heading> <toc> <referenceItem role="section"><designator>“Sec. 9801.</designator> <label>Increased portability through limitation on preexisting condition exclusions.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 9802.</designator> <label>Prohibiting discrimination against individual participants and beneficiaries based on health status.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 9803.</designator> <label>Guaranteed renewability in multiemployer plans and certain multiple employer welfare arrangements.”,</label></referenceItem> </toc> </subchapter> </chapter> </subtitle> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by redesignating sections 9804, 9805, and 9806 as sections 9831, 9832, and 9833, respectively,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by inserting before section 9831 (as so redesignated) the following: <quotedContent> <subchapter> <num value="C">“Subchapter C—</num><heading>General Provisions</heading> <toc> <referenceItem role="section"><designator>“Sec. 9831.</designator> <label>General exceptions.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 9832.</designator> <label>Definitions.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 9833.</designator> <label>Regulations.”, and</label></referenceItem> </toc> </subchapter> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>by inserting after section 9803 the following: <quotedContent> <subchapter> <num value="B">“Subchapter B—</num><heading>Other Requirements</heading> <toc> <referenceItem role="section"><designator>“Sec. 9811.</designator> <label>Standards relating to benefits for mothers and newborns.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 9812.</designator> <label>Parity in the application of certain limits to mental health benefits.</label></referenceItem> </toc> <section> <num value="9811">“SEC. 9811.</num> <heading>STANDARDS RELATING TO BENEFITS FOR MOTHERS AND NEWBORNS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Requirements for Minimum Hospital Stay Following Birth</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>A group health plan may not—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>except as provided in paragraph (2)—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>restrict benefits for any hospital length of stay in connection with childbirth for the mother or newborn child, following a normal vaginal delivery, to less than 48 hours, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>restrict benefits for any hospital length of stay in connection with childbirth for the mother or newborn child, following a caesarean section, to less than 96 hours; or</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>require that a provider obtain authorization from the plan or the issuer for prescribing any length of stay required under subparagraph (A) (without regard to paragraph (2)).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Exception</inline>.—</heading><content>Paragraph (1)(A) shall not apply in connection with any group health plan in any case in which the decision to discharge the mother or her newborn child prior to the expiration of the minimum length of stay otherwise required under paragraph (1)(A) is made by an attending provider in consultation with the mother.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Prohibitions</inline>.—</heading><chapeau>A group health plan may not—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>deny to the mother or her newborn child eligibility, or continued eligibility, to enroll or to renew coverage under the terms of the plan, solely for the purpose of avoiding the requirements of this section;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>provide monetary payments or rebates to mothers to encourage such mothers to accept less than the minimum protections available under this section;<page identifier="/us/stat/111/1082">111 STAT. 1082</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>penalize or otherwise reduce or limit the reimbursement of an attending provider because such provider provided care to an individual participant or beneficiary in accordance with this section;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>provide incentives (monetary or otherwise) to an attending provider to induce such provider to provide care to an individual participant or beneficiary in a manner inconsistent with this section; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>subject to subsection (c)(3), restrict benefits for any portion of a period within a hospital length of stay required under subsection (a) in a manner which is less favorable than the benefits provided for any preceding portion of such stay.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Rules of Construction</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <chapeau>Nothing in this section shall be construed to require a mother who is a participant or beneficiary—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>to give birth in a hospital; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>to stay in the hospital for a fixed period of time following the birth of her child.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>This section shall not apply with respect to any group health plan which does not provide benefits for hospital lengths of stay in connection with childbirth for a mother or her newborn child.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>Nothing in this section shall be construed as preventing a group health plan from imposing deductibles, coinsurance, or other cost-sharing in relation to benefits for hospital lengths of stay in connection with childbirth for a mother or newborn child under the plan, except that such coinsurance or other cost-sharing for any portion of a period within a hospital length of stay required under subsection (a) may not be greater than such coinsurance or cost-sharing for any preceding portion of such stay.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Level and Type of Reimbursements</inline>.—</heading><content>Nothing in this section shall be construed to prevent a group health plan from negotiating the level and type of reimbursement with a provider for care provided in accordance with this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Preemption; Exception for Health Insurance Coverage in Certain States</inline>.—</heading><chapeau>The requirements of this section shall not apply with respect to health insurance coverage if there is a State law (including a decision, rule, regulation, or other State action having the effect of law) for a State that regulates such coverage that is described in any of the following paragraphs:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>Such State law requires such coverage to provide for at least a 48-hour hospital length of stay following a normal vaginal delivery and at least a 96-hour hospital length of stay following a caesarean section.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>Such State law requires such coverage to provide for maternity and pediatric care in accordance with guidelines established by the American College of Obstetricians and Gynecologists, the American Academy of Pediatrics, or other established professional medical associations.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>Such State law requires, in connection with such coverage for maternity care, that the hospital length of stay for such care is left to the decision of (or required to be made by) the attending provider in consultation with the mother.<page identifier="/us/stat/111/1083">111 STAT. 1083</page></content></paragraph> </subsection> </section> <section> <num value="9812">“SEC. 9812.</num> <heading>PARITY IN THE APPLICATION OF CERTAIN LIMITS TO MENTAL HEALTH BENEFITS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Aggregate lifetime limits</inline>.—</heading><chapeau>In the case of a group health plan that provides both medical and surgical benefits and mental health benefits—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">No lifetime limit</inline>.—</heading><content>If the plan does not include an aggregate lifetime limit on substantially all medical and surgical benefits, the plan may not impose any aggregate lifetime limit on mental health benefits.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Lifetime limit</inline>.—</heading><chapeau>If the plan includes an aggregate lifetime limit on substantially all medical and surgical benefits (in this paragraph referred to as the ‘applicable lifetime limit’), the plan shall either—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>apply the applicable lifetime limit both to the medical and surgical benefits to which it otherwise would apply and to mental health benefits and not distinguish in the application of such limit between such medical and surgical benefits and mental health benefits; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>not include any aggregate lifetime limit on mental health benefits that is less than the applicable lifetime limit.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Rule in case of different limits</inline>.—</heading><content>In the case of a plan that is not described in subparagraph (A) or (B) and that includes no or different aggregate lifetime limits on different categories of medical and surgical benefits, the Secretary shall establish rules under which subparagraph (B) is applied to such plan with respect to mental health benefits by substituting for the applicable lifetime limit an average aggregate lifetime limit that is computed taking into account the weighted average of the aggregate lifetime limits applicable to such categories.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Annual limits</inline>.—</heading><chapeau>In the case of a group health plan that provides both medical and surgical benefits and mental health benefits—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">No annual limit</inline>.—</heading><content>If the plan does not include an annual limit on substantially all medical and surgical benefits, the plan may not impose any annual limit on mental health benefits.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Annual limit</inline>.—</heading><chapeau>If the plan includes an annual limit on substantially all medical and surgical benefits (in this paragraph referred to as the ‘applicable annual limit’), the plan shall either—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>apply the applicable annual limit both to medical and surgical benefits to which it otherwise would apply and to mental health benefits and not distinguish in the application of such limit between such medical and surgical benefits and mental health benefits; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>not include any annual limit on mental health benefits that is less than the applicable annual limit.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>Rule in case of different limits.—In the case of a plan that is not described in subparagraph (A) or (B) and that includes no or different annual limits on different categories of medical and surgical benefits, the Secretary shall establish rules under which subparagraph (B) is applied to such plan with respect to mental health <page identifier="/us/stat/111/1084">111 STAT. 1084</page>benefits by substituting for the applicable annual limit an average annual limit that is computed taking into account the weighted average of the annual limits applicable to such categories.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Construction</inline>.—</heading><chapeau>Nothing in this section shall be construed—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>as requiring a group health plan to provide any mental health benefits; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>in the case of a group health plan that provides mental health benefits, as affecting the terms and conditions (including cost sharing, limits on numbers of visits or days of coverage, and requirements relating to medical necessity) relating to the amount, duration, or scope of mental health benefits under the plan, except as specifically provided in subsection (a) (in regard to parity in the imposition of aggregate lifetime limits and annual limits for mental health benefits).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Exemptions</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Small employer exemption</inline>.—</heading><content>This section shall not apply to any group health plan for any plan year of a small employer (as defined in section 4980D(d)(2)).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Increased cost exemption</inline>.—</heading><content>This section shall not apply with respect to a group health plan if the application of this section to such plan results in an increase in the cost under the plan of at least 1 percent.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Separate Application to Each Option Offered</inline>.—</heading><content>In the case of a group health plan that offers a participant or beneficiary two or more benefit package options under the plan, the requirements of this section shall be applied separately with respect to each such option.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>Aggregate lifetime limit.—The term ‘aggregate lifetime limit’ means, with respect to benefits under a group health plan, a dollar limitation on the total amount that may be paid with respect to such benefits under the plan with respect to an individual or other coverage unit.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Annual limit</inline>.—</heading><content>The term ‘annual limit’ means, with respect to benefits under a group health plan, a dollar limitation on the total amount of benefits that may be paid with respect to such benefits in a 12-month period under the plan with respect to an individual or other coverage unit.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Medical or surgical benefits</inline>.—</heading><content>The term ‘medical or surgical benefits’ means benefits with respect to medical or surgical services, as defined under the terms of the plan, but does not include mental health benefits.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Mental health benefits</inline>.—</heading><content>The term ‘mental health benefits’ means benefits with respect to mental health services, as defined under the terms of the plan, but does not include benefits with respect to treatment of substance abuse or chemical dependency.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Sunset</inline>.—</heading><content>This section shall not apply to benefits for services furnished on or after September 30, 2001.”.</content> </subsection> </section> </subchapter> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>Chapter 100 of such Code is further amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in the last sentence of section 9801(c)(1), by striking “<quotedText>section 9805(c)</quotedText>” and inserting “<quotedText>section 9832(c)</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in section 9831(b), by striking “<quotedText>9805(c)(1)</quotedText>” and inserting “<quotedText>9832(c)(1)</quotedText>”;<page identifier="/us/stat/111/1085">111 STAT. 1085</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>in section 9831(c)(1), by striking “<quotedText>9805(c)(2)</quotedText>” and inserting “<quotedText>9832(c)(2)</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>in section 9831(c)(2), by striking “<quotedText>9805(c)(3)</quotedText>” and inserting “<quotedText>9832(c)(3)</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>in section 9831(c)(3), by striking “<quotedText>9805(c)(4)</quotedText>” and inserting “<quotedText>9832(c)(4)</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>Section 4980D of such Code is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in subsection (a), by striking “<quotedText>plan portability, access, and renewability</quotedText>” and inserting “<quotedText>plans</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in subsection (c)(3)(B)(i)(I), by striking “<quotedText>9805(d)(3)</quotedText>” and inserting “<quotedText>9832(d)(3)</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>in subsection (d)(1), by inserting “<quotedText>(other than a failure attributable to section 9811)</quotedText>” after “on any failure”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>in subsection (d)(3), by striking “<quotedText>9805</quotedText>” and inserting “<quotedText>9832</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>in subsection (f)(1), by striking “<quotedText>9805(a)</quotedText>” and inserting “<quotedText>9832(a)</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>The table of subtitles for such Code is amended by striking the item relating to subtitle K and inserting the following new item: <quotedContent> <toc> <referenceItem role="subtitle"><designator>“<inline class="smallCaps">Subtitle</inline> K.</designator> <label>Group health plan requirements.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4980D">26 USC 4980D note</ref>.</p></sidenote> shall apply with respect to group health plans for plan years beginning on or after January 1, 1998.</content> </subsection> </section> <section> <num value="1532">SEC. 1532.</num> <heading>SPECIAL RULES RELATING TO CHURCH PLANS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 9802 (relating to prohibiting discrimination against individual participants and beneficiaries based on health status) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Special Rules for Church Plans</inline>.—</heading><chapeau>A church plan (as defined in section 414(e)) shall not be treated as failing to meet the requirements of this section solely because such plan requires evidence of good health for coverage of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>both any employee of an employer with 10 or less employees (determined without regard to section 414(e)(3)(C)) and any self-employed individual, or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>any individual who enrolls after the first 90 days of initial eligibility under the plan.</content></paragraph> <continuation class="indent0 fontsize10">This subsection shall apply to a plan for any year only if the plan included the provisions described in the preceding sentence on July 15, 1997, and at all times thereafter before the beginning of such year”.</continuation> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by subsection<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s9802">26 USC 9802 note</ref>.</p></sidenote> (a) shall take effect as if included in the amendments made by section 401(a) of the Health Insurance Portability and Accountability Act of 1996.</content> </subsection> </section> </subtitle> <subtitle> <num value="D">Subtitle D—</num><heading>Provisions Relating to Plan Amendments</heading> <section> <num value="1541">SEC. 1541.</num> <heading>PROVISIONS RELATING TO PLAN AMENDMENTS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s411">26 USC 411 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>If this section applies to any plan or contract amendment—<page identifier="/us/stat/111/1086">111 STAT. 1086</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>such plan or contract shall be treated as being operated in accordance with the terms of the plan during the period described in subsection (b)(2)(A), and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>such plan shall not fail to meet the requirements of section 411(d)(6) of the Internal Revenue Code of 1986 or section 204(g) of the Employee Retirement Income Security Act of 1974 by reason of such amendment.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Amendments to Which Section Applies</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>This section shall apply to any amendment to any plan or annuity contract which is made—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>pursuant to any amendment made by this title or subtitle H of title X, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>before the first day of the first plan year beginning on or after January 1, 1999.</content></subparagraph> <continuation class="indent0 fontsize10">In the case of a governmental plan (as defined in section 414(d) of the Internal Revenue Code of 1986), this paragraph shall be applied by substituting “2001” for “1999”.</continuation> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Conditions</inline>.—</heading><chapeau>This section shall not apply to any amendment unless—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <chapeau>during the period—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>beginning on the date the legislative amendment described in paragraph (1)(A) takes effect (or in the case of a plan or contract amendment not required by such legislative amendment, the effective date specified by the plan), and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>ending on the date described in paragraph (1)(B) (or, if earlier, the date the plan or contract amendment is adopted),</content></clause> <continuation class="indent0 fontsize10">the plan or contract is operated as if such plan or contract amendment were in effect, and</continuation> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>such plan or contract amendment applies retroactively for such period.</content></subparagraph> </paragraph> </subsection> </section> </subtitle> <num value="XVI">TITLE XVI—</num><heading>TECHNICAL AMENDMENTS RELATED TO SMALL BUSINESS JOB PROTECTION ACT OF 1996 AND OTHER LEGISLATION</heading> <section> <num value="1600">SEC. 1600.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1">26 USC 1 note</ref>.</p></sidenote> <heading>COORDINATION WITH OTHER TITLES.</heading> <content>For purposes of applying the amendments made by any title of this Act other than this title, the provisions of this title shall be treated as having been enacted immediately before the provisions of such other titles.</content> </section> <section> <num value="1601">SEC. 1601.</num> <heading>AMENDMENTS RELATED TO SMALL BUSINESS JOB PROTECTION ACT OF 1996.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Amendments Related to Subtitle A</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Amendment related to section me.—Paragraph (1) of section 6050R(c) is amended by striking “<quotedText>name and address</quotedText>” and inserting “<quotedText>name, address, and phone number of the information contact</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Amendment to section 1116.—Paragraphs (1) and (2)(C) of section 1116(b) of the Small Business Job Protection Act of 1996 shall each be applied as if the reference to chapter 68 were a reference to chapter 61.<page identifier="/us/stat/111/1087">111 STAT. 1087</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Amendment Related to Subtitle B</inline>.—</heading><content>Subsection (c) of section 52 is amended by striking “<quotedText>targeted jobs credit</quotedText>” and inserting “<quotedText>work opportunity credit</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Amendments Related to Subtitle C</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Amendment related to section 1302</inline>.—</heading><content>Subparagraph (B) of section 1361(e)(1) is amended by striking “<quotedText>and</quotedText>” at the end of clause (i), striking the period at the end of clause (ii) and inserting and”, and adding at the end the following new clause: <quotedContent> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>any charitable remainder annuity trust or charitable remainder unitrust (as defined in section 664(d)).”.</content></clause> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Effective date for section 1307</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1377">26 USC 1377 note</ref>.</p></sidenote> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Notwithstanding section 1317 of the Small Business Job Protection Act of 1996, the amendments made by subsections (a) and (b) of section 1307 of such Act shall apply to determinations made after December 31, 1996.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>In no event shall the 120-day period referred to in section 1377(b)(1)(B) of the Internal Revenue Code of 1986 (as added by such section 1307) expire before the end of the 120-day period beginning on the date of the enactment of this Act.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Amendment related to section 1308</inline>.—</heading><content>Subparagraph (A) of section 1361(b)(3) is amended by striking “<quotedText>For purposes of this title</quotedText>” and inserting “<quotedText>Except as provided in regulations prescribed by the Secretary, for purposes of this title</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Amendments related to section 1316</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Paragraph (2) of section 512(e) is amended by striking “<quotedText>within the meaning of section 1012</quotedText>” and inserting “<quotedText>as defined in section 1361(e)(1)(C)</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Paragraph (7) of section 1361(c) is redesignated as paragraph (6).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>Subparagraph (B) of section 1361(b)(1) is amended by striking “<quotedText>subsection (c)(7)</quotedText>” and inserting “<quotedText>subsection (c)(6)</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>Paragraph (1) of section 512(e) is amended by striking “<quotedText>section 1361(c)(7)</quotedText>” and inserting “<quotedText>section 1361(c)(6)</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Amendments Related to Subtitle D</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Amendments related to section 1421</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Subsection (i) of section 408 is amended in the last sentence by striking “<quotedText>30 days</quotedText>” and inserting “<quotedText>31 days</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Subparagraph (H) of section 408(k)(6) is amended by striking “<quotedText>if the terms of such pension</quotedText>” and inserting “<quotedText>of an employer if the terms of simplified employee pensions of such employer</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num><clause class="inline"><num value="i">(i)</num> <chapeau>Subparagraph (B) of section 408(1)(2) is amended—</chapeau> <subclause class="indent4 fontsize10"><num value="I">(I)</num> <content>by inserting “<quotedText>and the issuer of an annuity established under such an arrangement</quotedText>” after “under subsection (p)”, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">(II)</num> <content>in clause (i), by inserting “<quotedText>or issuer</quotedText>” after “trustee”.</content></subclause> </clause> <clause class="indent0 fontsize10"><num value="ii">(ii)</num> <chapeau>Paragraph (2) of section 6693(c) is amended—</chapeau> <subclause class="indent4 fontsize10"><num value="I">(I)</num> <content>by inserting “<quotedText>or issuer</quotedText>” after “trustee”, and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">(II)</num> <content>in the heading, by inserting “<quotedText><inline class="smallCaps">and issuer</inline></quotedText>” after “trustee”.<page identifier="/us/stat/111/1088">111 STAT. 1088</page></content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>Subsection (p) of section 408 is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <heading><inline class="smallCaps">Coordination with maximum limitation under subsection (a)</inline>.—</heading><content>In the case of any simple retirement account, subsections (a)(1) and (b)(2) shall be applied by substituting ‘the sum of the dollar amount in effect under paragraph (2)(A)(ii) of this subsection and the employer contribution required under subparagraph (A)(iii) or (B)(i) of paragraph (2) of this subsection, whichever is applicable’ for ‘$2,000’.”.</content></paragraph> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>Clause (i) of section 408(p)(2)(D) is amended by adding at the end the following new sentence: “If only individuals other than employees described in subparagraph (A) or (B) of section 410(b)(3) are eligible to participate in such arrangement, then the preceding sentence shall be applied without regard to any qualified plan in which only employees so described are eligible to participate.”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F)</num> <content>Subparagraph (D) of section 408(p)(2) is amended by adding at the end the following new clause: <quotedContent> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> <heading><inline class="smallCaps">Grace period</inline>.—</heading><content>In the case of an employer who establishes and maintains a plan under this subsection for 1 or more years and who fails to meet any requirement of this subsection for any subsequent year due to any acquisition, disposition, or similar transaction involving another such employer, rules similar to the rules of section 410(b)(6)(C) shall apply for purposes of this subsection.”.</content></clause> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">(G)</num> <content>Paragraph (5) of section 408(p) is amended in the text preceding subparagraph (A) by striking “<quotedText>simplified</quotedText>” and inserting “<quotedText>simple</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Amendments related to section 1422</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Clause (ii) of section 401(k)(11)(D) is amended by striking the period and inserting “<quotedText>if such plan allows only contributions required under this paragraph.</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Paragraph (11) of section 401(k) is amended by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <heading><inline class="smallCaps">Cost-of-living adjustment</inline>.—</heading><content>The Secretary shall adjust the $6,000 amount under subparagraph (B)(i)(I) at the same time and in the same manner as under section 408(p)(2)(E).”.</content></subparagraph> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <chapeau>Subparagraph (A) of section 404(a)(3) is amended—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>in clause (i), by striking “<quotedText>not in excess of</quotedText>” and all that follows and inserting the following: “not in excess of the greater of— <quotedContent> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>15 percent of the compensation otherwise paid or accrued during the taxable year to the beneficiaries under the stock bonus or profit-sharing plan, or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the amount such employer is required to contribute to such trust under section 401(k)(11) for such year.”, and</content></subclause> </quotedContent> </content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>in clause (ii), by striking “<quotedText>15 percent</quotedText>” and all that follows and inserting the following “the amount described in subclause (I) or (II) of clause (i), whichever is greater, with respect to such taxable year.”.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>Subparagraph (B) of section 401(k)(11) is amended by adding at the end the following new clause:<page identifier="/us/stat/111/1089">111 STAT. 1089</page> <quotedContent> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <chapeau><inline class="smallCaps">Administrative requirements</inline>.—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Rules similar to the<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> rules of subparagraphs (B) and (C) of section 408(p)(5) shall apply for purposes of this subparagraph.</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <heading><inline class="smallCaps">Notice of election period</inline>.—</heading><content>The requirements of this subparagraph shall not be treated as met with respect to any year unless the employer notifies each employee eligible to participate, within a reasonable period of time before the 60th day before the beginning of such year (and, for the first year the employee is so eligible, the 60th day before the first day such employee is so eligible), of the rules similar to the rules of section 408(p)(5)(C) which apply by reason of subclause (I).”.</content></subclause> </clause> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Amendment related to section 1433</inline>.—</heading><content>The heading of paragraph (11) of section 401(m) is amended by striking “<quotedText>Alternative</quotedText>” and inserting “<quotedText>Additional alternative</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Clarification of section 1450</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s403">26 USC 403 note</ref>.</p></sidenote> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <chapeau>Section 403(b)(11) of the Internal Revenue Code of 1986 shall not apply with respect to a distribution from a contract described in section 1450(b)(1) of such Act to the extent that such distribution is not includible in income by reason of—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>in the case of distributions before January 1, 1998, section 403 (b)(8) or (b)(10) of such Code (determined after the application of section 1450(b)(2) of such Act), and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>in the case of distributions on and after such date, such section 403(b)(1).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>This paragraph shall apply as if included in section<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> 1450 of the Small Business Job Protection Act of 1996.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <heading><inline class="smallCaps">Amendment related to section 1451</inline>.—</heading><content>Clause (ii) of section 205(c)(8)(A) of the Employee Retirement Income Security Act of 1974 is amended by striking “<quotedText>Secretary</quotedText>” and inserting<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s1055">29 USC 1055</ref>.</p></sidenote> “Secretary of the Treasury”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <heading><inline class="smallCaps">Amendments related to section 1461</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Section 414(e)(5)(A) is amended to read as follows: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Certain ministers may participate</inline>.—</heading><chapeau>For purposes of this part—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>A duly ordained, commissioned, or licensed minister of a church is described in paragraph (3)(B) if, in connection with the exercise of their ministry, the minister—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>is a self-employed individual (within the meaning of section 401(c)(1)(B), or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>is employed by an organization other than an organization which is described in section 501(c)(3) and with respect to which the minister shares common religious bonds.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Treatment as employer and employee</inline>.—</heading><content>For purposes of sections 403(b)(1)(A) and 404(a)(10), a minister described in clause (i)(I) shall be treated as employed by the minister’s own employer which is an organization described in section 501(c)(3) and exempt from tax under section 501(a).”.<page identifier="/us/stat/111/1090">111 STAT. 1090</page></content></clause> </subparagraph> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Section 403(b)(1)(A) is amended by striking “<quotedText>or</quotedText>” at the end of clause (i), by inserting “<quotedText>or</quotedText>” at the end of clause (ii), and by adding at the end the following new clause: <quotedContent> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>for the minister described in section 414(e)(5)(A) by the minister or by an employer,”.</content></clause> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <heading><inline class="smallCaps">Amendment related to section 1462</inline>.—</heading><content>The paragraph (7) of section 414(q) added by section 1462 of the Small Business Job Protection Act of 1996 is redesignated as paragraph (9). (e) Amendment Related to Subtitle E.—Subparagraph (A) of section 956(b)(1) is amended by inserting “<quotedText>to the extent such amount was accumulated in prior taxable years</quotedText>” after “section 316(a)(1)”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Amendments Related to Subtitle F</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Amendments related to section 1601</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>The heading of section 30A is amended to read as follows: <quotedContent> <section> <num value="30A">“SEC. 30A.</num> <heading>PUERTO RICO ECONOMIC ACTIVITY CREDIT”.</heading> </section> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>The table of sections for subpart B of part IV of subchapter A of chapter 1 is amended in the item relating to section 30A by striking “<quotedText>Puerto Rican</quotedText>” and inserting “<quotedText>Puerto Rico</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>Paragraph (1) of section 55(c) is amended by striking “<quotedText>Puerto Rican</quotedText>” and inserting “<quotedText>Puerto Rico</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Amendments related to section 1606</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Clause (ii) of section 9503(c)(2)(A) is amended by striking “<quotedText>(or with respect to qualified diesel-powered highway vehicles purchased before January 1, 1999)</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Subparagraph (A) of section 9503(e)(5) is amended by striking except that” and all that follows and inserting a period.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Amendments related to section 1607</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <chapeau>Subsection (f) of section 4001 (relating to phasedown of tax on luxury passenger automobiles) is amended—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by inserting “<quotedText>and section 4003(a)</quotedText>” after “subsection (a)”, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by inserting “<quotedText>, each place it appears,</quotedText>” before “the percentage”.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Subsection (g) of section 4001 (relating to termination) is amended by striking “<quotedText>tax imposed by this section</quotedText>” and inserting “<quotedText>taxes imposed by this section and section 4003</quotedText>” and by striking “<quotedText>or use</quotedText>” and inserting “<quotedText>, use, or installation</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4001">26 USC 4001 note</ref>.</p></sidenote> <content>The amendments made by this paragraph shall apply to sales after the date of the enactment of this Act.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Amendments related to section 1609</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <chapeau>Subsection (1) of section 4041 is amended—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by inserting “<quotedText>or a fixed-wing aircraft</quotedText>” after “helicopter”, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>in the heading, by striking “<quotedText><inline class="smallCaps">Helicopter</inline></quotedText>”.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>The last sentence of section 4041(a)(2) is amended by striking “<quotedText>section 4081(a)(2)(A)</quotedText>” and inserting “<quotedText>section 4081(a)(2)(A)(i)</quotedText>”.<page identifier="/us/stat/111/1091">111 STAT. 1091</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>Subsection (b) of section 4092 is amended by striking “<quotedText>section 4041(c)(4)</quotedText>” and inserting “<quotedText>section 4041(c)(2)</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>Subsection (g) of section 4261 (as redesignated by title X) is amended by inserting “<quotedText>on that flight</quotedText>” after “dedicated”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>Paragraph (1) of section 1609(h) of such Act is<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4091">26 USC 4091 note</ref>.</p></sidenote> amended by striking “<quotedText>paragraph (3)(A)(i)</quotedText>” and inserting “<quotedText>paragraph (3)(A)</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F)</num> <content>Paragraph (4) of section 1609(h) of such Act is amended by inserting before the period “or exclusively for the use described in section 4092(b) of such Code”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <heading><inline class="smallCaps">Amendments related to section 1616</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Subparagraph (A) of section 593(e)(1) is amended by inserting “<quotedText>(and, in the case of an S corporation, the accumulated adjustments account, as defined in section 1368(e)(D)</quotedText>” after “1951,”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Paragraph (7) of section 1374(d) is amended by adding at the end the following new sentence: “For purposes of applying this section to any amount includible in income by reason of section 593(e), the preceding sentence shall be applied without regard to the phrase ‘10-year’.”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <heading><inline class="smallCaps">Amendments related to section 1621</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Subparagraph (A) of section 860L(b)(1) is amended in the text preceding clause (i) by striking “<quotedText>after the startup date</quotedText>” and inserting “<quotedText>on or after the startup date</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Paragraph (2) of section 860L(a) is amended by striking “<quotedText>section 8601(c)(2)</quotedText>” and inserting “<quotedText>section 8601(b)(2)</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>Subparagraph (B) of section 860L(e)(2) is amended by inserting “<quotedText>other than foreclosure property</quotedText>” after “any permitted asset”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>Subparagraph (A) of section 860L(e)(3) is amended by striking “<quotedText>if the FASIT</quotedText>” and all that follows and inserting the following new flush text after clause (ii): <quotedContent> <p class="indent0 fontsize10">“if the FASIT were treated as a REMIC and permitted assets (other than cash or cash equivalents) were treated as qualified mortgages.”.</p> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num><clause class="inline"><num value="i">(i)</num> <content>Paragraph (3) of section 860L(e) is amended by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <heading><inline class="smallCaps">Income from dispositions of former hedge assets</inline>.—</heading><chapeau>Paragraph (2)(A) shall not apply to income derived from the disposition of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>an asset which was described in subsection (c)(1)(D) when first acquired by the FASIT but on the date of such disposition was no longer described in subsection (c)(1)(D)(ii), or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>a contract right to acquire an asset described in clause (i).”.</content></clause> </subparagraph> </quotedContent> </content></clause> <clause class="indent0 fontsize10"><num value="ii">(ii)</num> <content>Subparagraph (A) of section 860L(e)(2) is amended by inserting “<quotedText>except as provided in paragraph (3),</quotedText>” before “the receipt”.</content></clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g)</num> <heading><inline class="smallCaps">Amendments Related to Subtitle G</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Extension of period for claiming refunds for alcohol fuels</inline>.—</heading><content><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6427">26 USC 6427 note</ref>.</p></sidenote>Notwithstanding section 6427(i)(3)(C) of the Internal Revenue Code of 1986, a claim filed under section 6427(f) of such Code for any period after September 30, 1995, and before October 1, 1996, shall be treated as timely filed <page identifier="/us/stat/111/1092">111 STAT. 1092</page>if filed before the 60th day after the date of the enactment of this Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6501">26 USC 6501</ref>.</p></sidenote><content>Amendments to Sections 1703 and 1704.—Sections 1703(n)(8) and 1704(j)(4)(B) of the Small Business Job Protection Act of 1996 shall each be applied as if such sections referred to section 1702 instead of section 1602.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h)</num> <heading><inline class="smallCaps">Amendments Related to Subtitle H</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Amendments related to section 1806</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Subparagraph (B) of section 529(e)(1) is amended by striking “<quotedText>subsection (c)(2)(C)</quotedText>” and inserting “<quotedText>subsection (c)(3)(C)</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Subparagraph (C) of section 529(e)(1) is amended by inserting “<quotedText>(or agency or instrumentality thereof)</quotedText>” after “local government”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>Paragraph (2) of section 1806(c) of the Small Business<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s529">26 USC 529 note</ref>.</p></sidenote> Job Protection Act of 1996 is amended by striking so much of the first sentence as follows subparagraph (B)(ii) and inserting the following: <quotedContent> <p class="indent0 fontsize10">“<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote>then such program (as in effect on August 20, 1996) shall be treated as a qualified State tuition program with respect to contributions (and earnings allocable thereto) pursuant to contracts entered into under such program before the first date on which such program meets such requirements (determined without regard to this paragraph) and the provisions of such program (as so in effect) shall apply in lieu of section 529(b) of the Internal Revenue Code of 1986 with respect to such contributions and earnings.”</p> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Amendments related to section 1807</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Paragraph (2) of section 23(a) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Year credit allowed</inline>.—</heading><chapeau>The credit under paragraph (1) with respect to any expense shall be allowed—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>in the case of any expense paid or incurred before the taxable year in which such adoption becomes final, for the taxable year following the taxable year during which such expense is paid or incurred, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>in the case of an expense paid or incurred during or after the taxable year in which such adoption becomes final, for the taxable year in which such expense is paid or incurred.”.</content></subparagraph> </paragraph> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Subparagraph (B) of section 23(b)(2) is amended by striking “<quotedText>determined—</quotedText>” and all that follows and inserting the following: “determined without regard to sections 911, 931, and 933.”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>Paragraph (1) of section 137(b) (relating to adoption assistance programs) is amended by striking “<quotedText>amount excludable from gross income</quotedText>” and inserting “<quotedText>of the amounts paid or expenses incurred which may be taken into account</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num><clause class="inline"><num value="i">(i)</num> <content>Subparagraph (C) of section 414(n)(3) is amended by inserting “<quotedText>137,</quotedText>” after “132,”.</content></clause> <clause class="indent0 fontsize10"><num value="ii">(ii)</num> <content>Paragraph (2) of section 414(t) is amended by inserting “<quotedText>137,</quotedText>” after “132”.</content></clause> <clause class="indent0 fontsize10"><num value="iii">(iii)</num> <content>Paragraph (1) of section 6039GD(d) is amended by striking “<quotedText>or 129</quotedText>” and inserting “<quotedText>129, or 137</quotedText>”.</content></clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="i">(i)</num> <heading><inline class="smallCaps">Amendments Related to Subtitle I</inline>.—<page identifier="/us/stat/111/1093">111 STAT. 1093</page></heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Amendment related to section 1901</inline>.—</heading><content>Subsection (b) of section 6048 is amended in the heading by striking “<quotedText>Grantor</quotedText>” and inserting “<quotedText>Owner</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Amendments related to section 1903</inline>.—</heading> <content class="indent0 fontsize10">Clauses (ii) and (iii) of section 679(a)(3)(C) are each amended by inserting “<quotedText>, owner,</quotedText>” after “grantor”.</content> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Amendments related to section 1907</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Clause (ii) of section 7701(a)(30)(E) is amended by striking “<quotedText>fiduciaries</quotedText>” and inserting “<quotedText>persons</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Subsection (b) of section 641 is amended by adding at the end the following new sentence: “For purposes of this subsection, a foreign trust or foreign estate shall be treated as a nonresident alien individual who is not present in the United States at any time.”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Effective date related to subtitle i</inline>.—</heading><chapeau>The Secretary<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s7701">26 USC 7701 note</ref>.</p></sidenote> of the Treasury may by regulations or other administrative guidance provide that the amendments made by section 1907(a) of the Small Business Job Protection Act of 1996 shall not apply to a trust with respect to a reasonable period beginning on the date of the enactment of such Act, if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>such trust is in existence on August 20, 1996, and is a United States person for purposes of the Internal Revenue Code of 1986 on such date (determined without regard to such amendments),</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>no election is in effect under section 1907(a)(3)(B) of such Act with respect to such trust,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>before the expiration of such reasonable period, such trust makes the modifications necessary to be treated as a United States person for purposes of such Code (determined with regard to such amendments), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>such trust meets such other conditions as the Secretary may require.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="j">(j)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s23">26 USC 23 note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in paragraph (2), the amendments made by this section shall take effect as if included in the provisions of the Small Business Job Protection Act of 1996 to which they relate.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Certain administrative requirements with respect to certain pension plans</inline>.—</heading><content>The amendment made by subsection (d)(2)(D) shall apply to calendar years beginning after the date of the enactment of this Act.</content></paragraph> </subsection> </section> <section> <num value="1602">SEC. 1602.</num> <heading>AMENDMENTS RELATED TO HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT OF 1996.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Amendments P elated to Section 301</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Paragraph (2) of section 26(b) is amended by striking “<quotedText>and</quotedText>” at the end of subparagraph (N), by striking the period at the end of subparagraph (O) and inserting and”, and by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="P">“(P)</num> <content>section 220(f)(4) (relating to additional tax on medical savings account distributions not used for qualified medical expenses).”.</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Paragraph (3) of section 220(c) is amended by striking subparagraph (A) and redesignating subparagraphs (B) through (D) as subparagraphs (A) through (C), respectively.<page identifier="/us/stat/111/1094">111 STAT. 1094</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Subparagraph (C) of section 220(d)(2) is amended by striking “<quotedText>an eligible individual</quotedText>” and inserting “<quotedText>described in clauses (i) and (ii) of subsection (c)(1)(A)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>Subsection (a) of section 6693 is amended by adding at the end the following new sentence: <quotedContent> <p class="indent0 fontsize10">“This subsection shall not apply to any report which is an information return described in section 6724(d)(1)(C)(i) or a payee statement described in section 6724(d)(2)(X).”.</p> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>Paragraph (4) of section 4975(c) is amended by striking “<quotedText>if, with respect to such transaction</quotedText>” and all that follows and inserting the following: “if section 220(e)(2) applies to such transaction.”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Amendment Related to Section 321</inline>.—</heading><content>Subparagraph (B) of section 7702B(c)(2) is amended in the last sentence by inserting “<quotedText>described in subparagraph (A)(i)</quotedText>” after “chronically ill individual”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Amendments Related to Section 322</inline>.—</heading><chapeau>Subparagraph (B) of section 162(1)(2) is amended by adding at the end the following new sentence: “The preceding sentence shall be applied separately with respect to—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>plans which include coverage for qualified longterm care services (as defined in section 7702B(c)) or are qualified long-term care insurance contracts (as defined in section 7702B(b)), and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>plans which do not include such coverage and are not such contracts.”.</content></clause> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Amendments Related to Section 323</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Paragraph (1) of section 6050Q(b) is amended by inserting “<quotedText>, address, and phone number of the information contact</quotedText>” after “name”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><subparagraph class="inline"><num value="A">(A)</num> <content>Paragraph (2) of section 6724(d) is amended by striking so much as follows subparagraph (Q) and precedes the last sentence, and inserting the following new subparagraphs: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="R">“(R)</num> <content>section 6050R(c) (relating to returns relating to certain purchases of fish),</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="S">“(S)</num> <content>section 6051 (relating to receipts for employees),</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="T">“(T)</num> <content>section 6052(b) (relating to returns regarding payment of wages in the form of group-term life insurance),</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="U">“(U)</num> <content>section 6053(b) or (c) (relating to reports of tips),</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="V">“(V)</num> <content>section 6048(b)(1)(B) (relating to foreign trust reporting requirements),</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="W">“(W)</num> <content>section 4093(c)(4)(B) (relating to certain purchasers of diesel and aviation fuels),</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="X">“(X)</num> <content>section 408(i) (relating to reports with respect to individual retirement plans) to any person other than the Secretary with respect to the amount of payments made to such person, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="Y">“(Y)</num> <content>section 6047(d) (relating to reports by plan administrators) to any person other than the Secretary with respect to the amount of payments made to such person.”.</content></subparagraph> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Subsection (e) of section 6652 is amended in the last sentence by striking “<quotedText>section 6724(d)(2)(X)</quotedText>” and inserting “<quotedText>section 6724(d)(2)(Y)</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Amendment Related to Section 325</inline>.—</heading><content>Clauses (ii) and (iii) of section 7702B(g)(4)(B) are each amended by striking “<quotedText>Secretary</quotedText>” and inserting “<quotedText>appropriate State regulatory agency</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Amendments Related to Section 501</inline>.—<page identifier="/us/stat/111/1095">111 STAT. 1095</page></heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Paragraph (4) of section 264(a) is amended by striking subparagraph (A) and all that follows through “by the taxpayer.” and inserting the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>is or was an officer or employee, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>is or was financially interested in, any trade or business carried on (currently or formerly) by the taxpayer.”.</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>The last 2 sentences of section 264(d)(2)(B)(ii) are amended to read as follows: <quotedContent> <p class="indent0 fontsize10">“For purposes of subclause (II), the term ‘applicable period’ means the 12-month period beginning on the date the policy is issued (and each successive 12-month period thereafter) unless the taxpayer elects a number of months (not greater than 12) other than such 12-month period to be its applicable period. Such an election<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> shall be made not later than the 90th day after the date of the enactment of this sentence and, if made, shall apply to the taxpayer’s first taxable year ending on or after October 13, 1995, and all subsequent taxable years unless revoked with the consent of the Secretary.”.</p> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Subparagraph (B) of section 264(d)(4) is amended by striking “<quotedText>the employer</quotedText>” and inserting “<quotedText>the taxpayer</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>Subsection (c) of section 501 of the Health Insurance Portability and Accountability Act of 1996 is amended by striking<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s264">26 USC 264 note</ref>.</p></sidenote> paragraph (3).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>Paragraph (2) of section 501(d) of such Act is amended by striking “<quotedText>no additional premiums</quotedText>” and all that follows and inserting the following: “a lapse occurring after October 13, 1995, by reason of no additional premiums being received under the contract.”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g)</num> <heading><inline class="smallCaps">Amendments Related to Section 511</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Subparagraph (B) of section 877(d)(2) is amended by striking “<quotedText>the 10-year period described in subsection (a)</quotedText>” and inserting “<quotedText>the 10-year period beginning on the date the individual loses United States citizenship</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Subparagraph (D) of section 877(d)(2) is amended by adding at the end the following new sentence: “In the case of any exchange occurring during such 5 years, any gain recognized under this subparagraph shall be recognized immediately after such loss of citizenship.”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Paragraph (3) of section 877(d) is amended by inserting “<quotedText>and the period applicable under paragraph (2)</quotedText>” after “subsection (a)”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <chapeau>Subparagraph (A) of section 877(d)(4) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by inserting “<quotedText>during the 10-year period beginning on the date the individual loses United States citizenship</quotedText>” after “contributes property” in clause (i),</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by inserting “<quotedText>immediately before such contribution</quotedText>” after “from such property”, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by striking “<quotedText>during the 10-year period referred to in subsection (a),</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>Subparagraph (C) of section 2501(a)(3) is amended by striking “<quotedText>decedent</quotedText>” and inserting “<quotedText>donor</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num><subparagraph class="inline"><num value="A">(A)</num> <content>Clause (i) of section 2107(c)(2)(B) is amended by striking “<quotedText>such foreign country in respect of property included in the gross estate as the value of the property</quotedText>” and inserting <page identifier="/us/stat/111/1096">111 STAT. 1096</page>“such foreign country as the value of the property subjected to such taxes by such foreign country and”.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B)</num> <content>Subparagraph (C) of section 2107(c)(2) is amended to read as follows: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>Proportionate share.—In the case of property which is included in the gross estate solely by reason of subsection (b), such property’s proportionate share is the percentage which the value of such property bears to the total value of all property included in the gross estate solely by reason of subsection (b).”.</content></subparagraph> </quotedContent> </content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h)</num> <heading><inline class="smallCaps">Amendments Related to Section 512</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Subpart A of part III of subchapter A of chapter 61 is amended by redesignating the section 6039F added by section 512 of the Health Insurance Portability and Accountability Act of 1996 as section 6039G and by moving such section 6039G to immediately after the section 6039F added by section 1905 of the Small Business Job Protection Act of 1996.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>The table of sections for subpart A of part III of subchapter A of chapter 61 is amended by striking the item relating to the section 6039F related to information on individuals losing United States citizenship and inserting after the item relating to the section 6039F related to notice of large gifts received from foreign persons the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 6039G.</designator> <label>Information on individuals losing United States citizenship.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Paragraph (1) of section 877(e) is amended by striking “<quotedText>6039F</quotedText>” and inserting “<quotedText>6039G</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="i">(i)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s26">26 USC 26 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall take effect as if included in the provisions of the Health Insurance Portability and Accountability Act of 1996 to which such amendments relate.</content> </subsection> </section> <section> <num value="1603">SEC. 1603.</num> <heading>AMENDMENTS RELATED TO TAXPAYER BILL OF RIGHTS 2.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Amendment Related to Section 1311</inline>.—</heading><content>Subsection (b) of section 4962 is amended by striking “<quotedText>subchapter A or C</quotedText>” and inserting “<quotedText>subchapter A, C, or D</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Amendments Related to Section 1312</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num><subparagraph class="inline"><num value="A">(A)</num> <content>Paragraph (10) of section 6033(b) is amended by striking all that precedes subparagraph (A) and inserting the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="10">“(10)</num> <content>the respective amounts (if any) of the taxes imposed on the organization, or any organization manager of the organization, during the taxable year under any of the following provisions (and the respective amounts (if any) of reimbursements paid by the organization during the taxable year with respect to taxes imposed on any such organization manager under any of such provisions):”.</content></paragraph> </quotedContent> </content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B)</num> <content>Subparagraph (C) of section 6033(b)(10) is amended by adding at the end the following: “<quotedText>except to the extent that, by reason of section 4962, the taxes imposed under such section are not required to be paid or are credited or refunded,</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Paragraph (11) of section 6033(b) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="11">“(11)</num> <chapeau>the respective amounts (if any) of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the taxes imposed with respect to the organization on any organization manager, or any disqualified person, during the taxable year under section 4958 (relating to <page identifier="/us/stat/111/1097">111 STAT. 1097</page>taxes on private excess benefit from certain charitable organizations), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>reimbursements paid by the organization during the taxable year with respect to taxes imposed under such section,</content></subparagraph> <continuation class="indent0 fontsize10">except to the extent that, by reason of section 4962, the taxes imposed under such section are not required to be paid or are credited or refunded,”.</continuation> </paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4962">26 USC 4962 note</ref>.</p></sidenote> shall take effect as if included in the provisions of the Taxpayer Bill of Rights 2 to which such amendments relate.</content> </subsection> </section> <section> <num value="1604">SEC. 1604.</num> <heading>MISCELLANEOUS PROVISIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Amendments Related to Energy Policy Act of 1992</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Paragraph (1) of section 263(a) is amended by striking “or” at the end of subparagraph (F), by striking the period at the end of subparagraph (G) and inserting “<quotedText>; or</quotedText>”, and by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num> <content>expenditures for which a deduction is allowed under section 179A.”.</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>Subparagraph (B) of section 312(k)(3) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>179</quotedText>” in the heading and the first place it appears in the text and inserting “<quotedText>179 or 179A</quotedText>”, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking “<quotedText>179</quotedText>” the last place it appears and inserting “<quotedText>179 or 179A, as the case may be</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Paragraphs (2)(C) and (3)(C) of section 1245(a) are each amended by inserting “<quotedText>179A,</quotedText>” after “179”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>The amendments made by this subsection shall take<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s263">26 USC 263 note</ref>.</p></sidenote> effect as if included in the amendments made by section 1913 of the Energy Policy Act of 1992.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Amendments Related to Uruguay Round Agreements Act</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Paragraph (1) of section 6621(a) is amended in the last sentence by striking “<quotedText>subsection (c)(3))</quotedText>” and inserting “<quotedText>subsection (c)(3), applied by substituting ‘overpayment’ for ‘underpayment’)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><subparagraph class="inline"><num value="A">(A)</num> <content>Subclause (II) of section 412(m)(5)(E)(ii) is amended by striking “<quotedText>clause (i)</quotedText>” and inserting “<quotedText>subclause (I)</quotedText>”.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B)</num> <content>Subclause (II) of section 302(e)(5)(E)(ii) of the Employee Retirement Income Security Act of 1974 is amended by striking<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s1082">29 USC 1082</ref>.</p></sidenote> “clause (i)” and inserting “<quotedText>subclause (I)</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Subparagraph (A) of section 767(d)(3) of the Uruguay Round Agreements Act is amended in the last sentence by<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s411">26 USC 411 note</ref>.</p></sidenote> striking “<quotedText>(except that</quotedText>” and all that follows through “into account)”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>The amendments made by this subsection shall take<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s412">26 USC 412 note</ref>.</p></sidenote> effect as if included in the sections of the Uruguay Round Agreements Act to which they relate.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Amendment Related to Omnibus Budget Reconciliation Act of 1993</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Paragraph (6) of section 168(j) (defining Indian reservation) is amended by adding at the end the following new flush sentence: <quotedContent> <p class="indent0 fontsize10">“For purposes of the preceding sentence, such section 3(d) shall be applied by treating the term ‘former Indian reservations in Oklahoma’ as including only lands which are within the <page identifier="/us/stat/111/1098">111 STAT. 1098</page>jurisdictional area of an Oklahoma Indian tribe (as determined by the Secretary of the Interior) and are recognized by such Secretary as eligible for trust land status under 25 CFR Part 151 (as in effect on the date of the enactment of this sentence).”.</p> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s168">26 USC 168 note</ref>.</p></sidenote> <chapeau>The amendment made by paragraph (1) shall apply as if included in the amendments made by section 13321 of the Omnibus Budget Reconciliation Act of 1993, except that such amendment shall not apply—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>with respect to property (with an applicable recovery period under section 168(j) of the Internal Revenue Code of 1986 of 6 years or less) held by the taxpayer if the taxpayer claimed the benefits of section 168(j) of such Code with respect to such property on a return filed before March 18, 1997, but only if such return is the first return of tax filed for the taxable year in which such property was placed in service, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>with respect to wages for which the taxpayer claimed the benefits of section 45A of such Code for a taxable year on a return filed before March 18, 1997, but only if such return was the first return of tax filed for such taxable year.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Amendments Related to Tax Reform Act of 1986</inline>.—</heading><paragraph class="inline"><num value="1">(1)</num> <content>Paragraph (3) of section 1059(d) is amended by striking “<quotedText>subsection (a)(2)</quotedText>” and inserting “<quotedText>subsection (a)</quotedText>”.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num><subparagraph class="inline"><num value="A">(A)</num> <chapeau>Subparagraph (A) of section 833(b)(1) is amended—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by inserting before the comma at the end of clause (i) “and liabilities incurred during the taxable year under cost-plus contracts”, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by inserting before the comma at the end of clause (ii) “or in connection with the administration of cost-plus contracts”.</content></clause> </subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s833">26 USC 833 note</ref>.</p></sidenote> <content>The amendment made by subparagraph (A) shall take effect as if included in the amendments made by section 1012 of the Tax Reform Act of 1986.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Amendment Related to Tax Reform Act of 1984</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Section 267(f) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Determination of relationship resulting in disallowance of loss, for purposes of other provisions</inline>.—</heading><content>For purposes of any other section of this title which refers to a relationship which would result in a disallowance of losses under this section, deferral under paragraph (2) shall be treated as disallowance.”.</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s267">26 USC 267 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendment made by paragraph (1) shall take effect as if included in section 174(b) of the Tax Reform Act of 1984.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Amendments Related to Balanced Budget Act of 1997</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>The Balanced Budget Act of 1997 is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in the table of contents for title IV, in the item <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 275.</p></sidenote>relating to section 4921, by striking “<quotedText>children with</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 574.</p></sidenote> <content>in the heading for section 4921, by striking “<quotedText><inline class="smallCaps">children with</inline></quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <chapeau>in the section added by section 4921—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>in the heading for such section, by striking “<quotedText>children with</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by amending subsection (a) to read as follows:<page identifier="/us/stat/111/1099">111 STAT. 1099</page> <quotedContent> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>The Secretary, directly or through grants, shall provide for research into the prevention and cure of Type I diabetes.”.</content> </subsection> </quotedContent> </content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><subparagraph class="inline"><num value="A">(A)</num> <content>Section 11201(g)(2)(B)(iii) of the Balanced Budget<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> Act of 1997 shall apply as if the reference in such section to “December 31, 2003” were a reference to “December 31, 2001”.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B)</num> <content>Notwithstanding section 11104(b)(3) of the Balanced<sidenote><p class="indent0 firstIndent0 fontsize8">District of Columbia.</p></sidenote> Budget Act of 1997, in carrying out any of the management reform plans under such section, the head of a department of the government of the District of Columbia shall report solely to the District of Columbia Financial Responsibility and Management Assistance Authority.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Section 9302 of the Balanced Budget Act of 1997<sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 671</p></sidenote> is amended by adding at the end the following new subsection; <quotedContent> <subsection class="indent0 fontsize10"> <num value="k">“(k)</num> <heading><inline class="smallCaps">Coordination With Tobacco Industry Settlement Agreement</inline>.—</heading><content>The increase in excise taxes collected as a result of the amendments made by subsections (a), (e), and (g) of this section shall be credited against the total payments made by parties pursuant to Federal legislation implementing the tobacco industry settlement agreement of June 20, 1997.</content> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>The provisions of, and amendments made by, this subsection<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s254c–2">42 USC 254c–2 note</ref>.</p></sidenote> shall take effect immediately after the sections referred to in this subsection take effect.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g)</num> <heading><inline class="smallCaps">Clerical Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Clause (iii) of section 163(j)(2)(B) is amended by striking “<quotedText>clause (i)</quotedText>” and inserting “<quotedText>clause (ii)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Paragraph (1) of section 665(d) is amended in the last sentence by striking “<quotedText>or 669(d) and (e)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Subsection (g) of section 1441 (relating to cross reference) is amended by striking “<quotedText>one-half</quotedText>” and inserting “<quotedText>85 percent</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>Paragraph (1) of section 2523(g) is amended by striking “<quotedText>qualified remainder trust</quotedText>” and inserting “<quotedText>qualified charitable remainder trust</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>Subsection (d) of section 9502 is amended by redesignating the paragraph added by section 806 of the Federal Aviation Reauthorization Act of 1996 as paragraph (6).</content></paragraph> </subsection> </section> <num value="XVII">TITLE XVII—</num><heading>IDENTIFICATION OF LIMITED TAX BENEFITS SUBJECT TO LINE ITEM VETO</heading> <section> <num value="1701">SEC. 1701.</num> <heading>IDENTIFICATION OF LIMITED TAX BENEFITS SUBJECT TO LINE ITEM VETO.</heading> <chapeau>Section 1021(a)(3) of the Congressional Budget and Impoundment Control Act of 1974 shall only apply to—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>section 101(c) (relating to high risk pools permitted to cover dependents of high risk individuals);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>section 222 (relating to limitation on qualified 501(c)(3) bonds other than hospital bonds);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>section 224 (relating to contributions of computer technology and equipment for elementary or secondary school purposes);<page identifier="/us/stat/111/1100">111 STAT. 1100</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>section 312(a) (relating to treatment of remainder interests for purposes of provision relating to gain on sale of principal residence);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>section 501(b) (relating to indexing of alternative valuation of certain farm, etc., real property);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>section 504 (relating to extension of treatment of certain rents under section 2032A to lineal descendants);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <content>section 505 (relating to clarification of judicial review of eligibility for extension of time for payment of estate tax);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8)</num> <content>section 508 (relating to treatment of land subject to qualified conservation easement);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9)</num> <content>section 511 (relating to expansion of exception from generation-skipping transfer tax for transfers to individuals with deceased parents);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10)</num> <content>section 601 (relating to the research tax credit);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="11">(11)</num> <content>section 602 (relating to contributions of stock to private foundations);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="12">(12)</num> <content>section 603 (relating to the work opportunity tax credit);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="13">(13)</num> <content>section 604 (relating to orphan drug tax credit);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="14">(14)</num> <content>section 701 (relating to incentives for revitalization of the District of Columbia) to the extent it amends the Internal Revenue Code of 1986 to create sections 1400 and 1400A (relating to tax-exempt economic development bonds);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="15">(15)</num> <content>section 701 (relating to incentives for revitalization of the District of Columbia) to the extent it amends the Internal Revenue Code of 1986 to create section 1400C (relating to first-time homebuyer credit for District of Columbia);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="16">(16)</num> <content>section 801 (relating to incentives for employing longterm family assistance recipients);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="17">(17)</num> <content>section 904(b) (relating to uniform rate of tax on vaccines) as it relates to any vaccine containing pertussis bacteria, extracted or partial cell bacteria, or specific pertussis antigens;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="18">(18)</num> <content>section 904(b) (relating to uniform rate of tax on vaccines) as it relates to any vaccine against measles;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="19">(19)</num> <content>section 904(b) (relating to uniform rate of tax on vaccines) as it relates to any vaccine against mumps;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="20">(20)</num> <content>section 904(b) (relating to uniform rate of tax on vaccines) as it relates to any vaccine against rubella;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="21">(21)</num> <content>section 905 (relating to operators of multiple retail gasoline outlets treated as wholesale distributors for refund purposes);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="22">(22)</num> <content>section 906 (relating to exemption of electric and other clean-fuel motor vehicles from luxury automobile classification);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="23">(23)</num> <content>section 907(a) (relating to rate of tax on liquefied natural gas determined on basis of BTU equivalency with gasoline);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="24">(24)</num> <content>section 907(b) (relating to rate of tax on methanol from natural gas determined on basis of BTU equivalency with gasoline);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="25">(25)</num> <content>section 908 (relating to modification of tax treatment of hard cider);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="26">(26)</num> <content>section 914 (relating to mortgage financing for residences located in disaster areas);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="27">(27)</num> <content>section 962 (relating to assignment of workmen’s compensation liability eligible for exclusion relating to personal injury liability assignments);<page identifier="/us/stat/111/1101">111 STAT. 1101</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="28">(28)</num> <content>section 963 (relating to tax-exempt status for certain State worker’s compensation act companies);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="29">(29)</num> <content>section 967 (relating to additional advance refunding of certain Virgin Island bonds);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="30">(30)</num> <content>section 968 (relating to nonrecognition of gain on sale of stock to certain farmers’ cooperatives);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="31">(31)</num> <content>section 971 (relating to exemption of the incremental cost of a clean fuel vehicle from the limits on depreciation for vehicles);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="32">(32)</num> <content>section 974 (relating to clarification of treatment of certain receivables purchased by cooperative hospital service organizations);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="33">(33)</num> <content>section 975 (relating to deduction in computing adjusted gross income for expenses in connection with service performed by certain officials) with respect to taxable years beginning before 1991;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="34">(34)</num> <content>section 977 (relating to elective carryback of existing carryovers of National Railroad Passenger Corporation);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="35">(35)</num> <content>section 1005(b)(2)(B) (relating to transition rule for instruments described in a ruling request submitted to the Internal Revenue Service on or before June 8, 1997);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="36">(36)</num> <content>section 1005(b)(2)(C) (relating to transition rule for instruments described on or before June 8, 1997, in a public announcement or in a filing with the Securities and Exchange Commission) as it relates to a public announcement;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="37">(37)</num> <content>section 1005(b)(2)(C) (relating to transition rule for instruments described on or before June 8, 1997, in a public announcement or in a filing with the Securities and Exchange Commission) as it relates to a filing with the Securities and Exchange Commission;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="38">(38)</num> <content>section 1011(d)(2)(B) (relating to transition rule for distributions made pursuant to the terms of a tender offer outstanding on May 3, 1995);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="39">(39)</num> <content>section 1011(d)(3) (relating to transition rule for distributions made pursuant to the terms of a tender offer outstanding on September 13, 1995);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="40">(40)</num> <content>section 1012(d)(3)(B) (relating to transition rule for distributions pursuant to an acquisition described in section 355(e)(2)(A)(ii) of the Internal Revenue Code of 1986 described in a ruling request submitted to the Internal Revenue Service on or before April 16, 1997);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="41">(41)</num> <content>section 1012(d)(3)(C) (relating to transition rule for distributions pursuant to an acquisition described in section 355(e)(2)(A)(ii) of the Internal Revenue Code of 1986 described in a public announcement or filing with the Securities and Exchange Commission) as it relates to a public announcement;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="42">(42)</num> <content>section 1012(d)(3)(C) (relating to transition rule for distributions pursuant to an acquisition described in section 355(e)(2)(A)(ii) of the Internal Revenue Code of 1986 described in a public announcement or filing with the Securities and Exchange Commission) as it relates to a filing with the Securities and Exchange Commission;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="43">(43)</num> <content>section 1013(d)(2)(B) (relating to transition rule for distributions or acquisitions after June 8, 1997, described in a ruling request submitted to the Internal Revenue Service submitted on or before June 8, 1997);<page identifier="/us/stat/111/1102">111 STAT. 1102</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="44">(44)</num> <content>section 1013(d)(2)(C) (relating to transition rule for distributions or acquisitions after June 8, 1997, described in a public announcement or filing with the Securities and Exchange Commission on or before June 8, 1997) as it relates to a public announcement;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="45">(45)</num> <content>section 1013(d)(2)(C) (relating to transition rule for distributions or acquisitions after June 8, 1997, described in a public announcement or filing with the Securities and Exchange Commission on or before June 8, 1997) as it relates to a filing with the Securities and Exchange Commission;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="46">(46)</num> <content>section 1014(f)(2)(B) (relating to transition rule for any transaction after June 8, 1997, if such transaction is described in a ruling request submitted to the Internal Revenue Service on or before June 8, 1997);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="47">(47)</num> <content>section 1014(f)(2)(C) (relating to transition rule for any transaction after June 8, 1997, if such transaction is described in a public announcement or filing with the Securities and Exchange Commission on or before June 8, 1997) as it relates to a public announcement;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="48">(48)</num> <content>section 1014(f)(2)(C) (relating to transition rule for any transaction after June 8, 1997, if such transaction is described in a public announcement or filing with the Securities and Exchange Commission on or before June 8, 1997) as it relates to a filing with the Securities and Exchange Commission;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="49">(49)</num> <content>section 1042(b) (relating to special rules for provision terminating certain exceptions from rules relating to exempt organizations which provide commercial-type insurance);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="50">(50)</num> <content>section 1081(a) (relating to termination of suspense accounts for family corporations required to use accrual method of accounting) as it relates to the repeal of Internal Revenue Code section 447(i)(3);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="51">(51)</num> <content>section 1089(b)(3) (relating to reformations);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="52">(52)</num> <content>section 1089(b)(5)(B)(i) (relating to persons under a mental disability;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="53">(53)</num> <content>section 1171 (relating to treatment of computer software as FSC export property);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="54">(54)</num> <content>section 1175 (relating to exemption for active financing income);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="55">(55)</num> <content>section 1204 (relating to travel expenses of certain Federal employees engaged in criminal investigations);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="56">(56)</num> <content>section 1236 (relating to extension of time for filing a request for administrative adjustment);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="57">(57)</num> <content>section 1243 (relating to special rules for administrative adjustment request with respect to bad debts or worthless securities);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="58">(58)</num> <content>section 1251 (relating to clarification of limitation on maximum number of shareholders);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="59">(59)</num> <content>section 1253 (relating to attribution rules applicable to stock ownership);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="60">(60)</num> <content>section 1256 (relating to modification of earnings and profits rules for determining whether REIT has earnings and profits from non-REIT year);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="61">(61)</num> <content>section 1257 (relating to treatment of foreclosure property);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="62">(62)</num> <content>section 1261 (relating to shared appreciation mortgages);<page identifier="/us/stat/111/1103">111 STAT. 1103</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="63">(63)</num> <content>section 1302 (relating to clarification of waiver of certain rights of recovery);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="64">(64)</num> <content>section 1303 (relating to transitional rule under section 2056A);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="65">(65)</num> <content>section 1304 (relating to treatment for estate tax purposes of short-term obligations held by nonresident aliens);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="66">(66)</num> <content>section 1311 (relating to clarification of treatment of survivor annuities under qualified terminable interest rules);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="67">(67)</num> <content>section 1312 (relating to treatment of qualified domestic trust rules of forms of ownership which are not trusts);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="68">(68)</num> <content>section 1313 (relating to opportunity to correct failures under section 2032A);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="69">(69)</num> <content>section 1414 (relating to fermented material from any brewery may be received at a distilled spirits plant);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="70">(70)</num> <content>section 1417 (relating to use of additional ameliorating material in certain wines);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="71">(71)</num> <content>section 1418 (relating to domestically produced beer may be withdrawn free of tax for use of foreign embassies, legations, etc.);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="72">(72)</num> <content>section 1421 (relating to transfer to brewery of beer imported in bulk without payment of tax);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="73">(73)</num> <content>section 1422 (relating to transfer to bonded wine cellars of wine imported in bulk without payment of tax);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="74">(74)</num> <content>section 1506 (relating to clarification of certain rules relating to employee stock ownership plans of S corporations);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="75">(75)</num> <content>section 1507 (relating to modification of 10-percent tax for nondeductible contributions);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="76">(76)</num> <content>section 1523 (relating to repeal of application of unrelated business income tax to ESOPs);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="77">(77)</num> <content>section 1530 (relating to gratuitous transfers for the benefit of employees);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="78">(78)</num> <content>section 1532 (relating to special rules relating to church plans); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="79">(79)</num> <content>section 1604(c)(2) (relating to amendment related to Omnibus Budget Reconciliation Act of 1993).</content></paragraph> </section> Approved August 5, 1997.
LEGISLATIVE HISTORY—H.R. 2014 (S. 949): HOUSE REPORTS: Nos. 105–148 (Comm. on the Budget) and 105–220 (Comm. of Conference). CONGRESSIONAL RECORD, Vol. 143 (1997):

June 26, considered and passed House.

June 27, considered and passed Senate, amended, in lieu of S. 949.

July 31, House and Senate agreed to conference report.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):

Aug. 5, Presidential remarks and statement.

Aug. 11, Presidential remarks and special message on line item veto.

 FEDERAL REGISTER. Vol. 62 (1997):

Aug. 12, Cancellation of items pursuant to Line Item Veto Act.

 Public Law 105–35: To amend the Internal Revenue Code of 1986 to prevent the unauthorized inspection of tax returns or tax return information. Public Law35 Public Law 105–35 111 Stat. 1104 1997-08-05 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1104 Public Law105–35 105th Congress
An Act To amend the Internal Revenue Code of 1986 to prevent the unauthorized inspection of tax returns or tax return information.

Aug. 5, 1997

[H.R. 1226]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Taxpayer Browsing Protection Act.

26 USC 1 note.
SECTION 1. SHORT TITLE. This Act may be cited as the “Taxpayer Browsing Protection Act”.
SEC. 2. PENALTY FOR UNAUTHORIZED INSPECTION OF TAX RETURNS OR TAX RETURN INFORMATION. (a) In General.—Part I of subchapter A of chapter 75 of the Internal Revenue Code of 1986 (relating to crimes, other offenses, and forfeitures) is amended by adding after section 7213 the following new section:
“SEC. 7213A.

26 USC 7213A.

 UNAUTHORIZED INSPECTION OF RETURNS OR RETURN INFORMATION. “(a) Prohibitions.— “(1) Federal employees and other persons.—It shall be unlawful for— “(A) any officer or employee of the United States, or “(B) any person described in section 6103(n) or an officer or employee of any such person, willfully to inspect, except as authorized in this title, any return or return information. “(2) State and other employees.—It shall be unlawful for any person (not described in paragraph (1)) willfully to inspect, except as authorized in this title, any return or return information acquired by such person or another person under a provision of section 6103 referred to in section 7213(a)(2). “(b) Penalty.— “(1) In general.—Any violation of subsection (a) shall be punishable upon conviction by a fine in any amount not exceeding $1,000, or imprisonment of not more than 1 year, or both, together with the costs of prosecution. “(2) Federal officers or employees.—An officer or employee of the United States who is convicted of any violation of subsection (a) shall, in addition to any other punishment, be dismissed from office or discharged from employment. “(c) Definitions.—For purposes of this section, the terms ‘inspect’, ‘return’, and ‘return information’ have the respective meanings given such terms by section 6103(b).”.
(b) Technical Amendments.—111 STAT. 1105 (1) Paragraph (2) of section 7213(a) of such Code is

26 USC 7213.

 amended by inserting “(5),” after “(m)(2), (4),”. (2) The table of sections for part I of subchapter A of chapter 75 of such Code 1986 is amended by inserting after the item relating to section 7213 the following new item: “Sec. 7213A. (c) Effective Date.—The amendments made by this section

26 USC 7213 note.

 shall apply to violations occurring on and after the date of the enactment of this Act.
SEC. 3. CIVIL DAMAGES FOR UNAUTHORIZED INSPECTION OF RETURNS AND RETURN INFORMATION; NOTIFICATION OF UNLAWFUL INSPECTION OR DISCLOSURE. (a) Civil Damages for Unauthorized Inspection.—Subsection (a) of section 7431 of the Internal Revenue Code of 1986 is amended—

26 USC 7431.

 (1) by striking “Disclosure” in the headings for paragraphs (1) and (2) and inserting “Inspection or disclosure”, and (2) by striking “discloses” in paragraphs (1) and (2) and inserting “inspects or discloses”. (b) Notification of Unlawful Inspection or Disclosure.—Section 7431 of such Code is amended by redesignating subsections (e) and (f) as subsections (f) and (g), respectively, and by inserting after subsection (d) the following new subsection: “(e) Notification of Unlawful Inspection and Disclosure.—If any person is criminally charged by indictment or information with inspection or disclosure of a taxpayer’s return or return information in violation of— “(1) paragraph (1) or (2) of section 7213(a), “(2) section 7213A(a), or “(3) subparagraph (B) of section 1030(a)(2) of title 18, United States Code, the Secretary shall notify such taxpayer as soon as practicable of such inspection or disclosure.”. (c) No Damages for Inspection Requested by Taxpayer.—Subsection (b) of section 7431 of such Code is amended to read as follows: “(b) Exceptions.—No liability shall arise under this section with respect to any inspection or disclosure— “(1) which results from a good faith, but erroneous, interpretation of section 6103, or “(2) which is requested by the taxpayer.”. (d) Conforming Amendments.— (1) Subsections (c)(1)(A), (c)(1)(B)(i), and (d) of section 7431 of such Code are each amended by inserting “inspection or” before “disclosure”. (2) Clause (ii) of section 7431(c)(1)(B) of such Code is amended by striking “willful disclosure or a disclosure” and inserting “willful inspection or disclosure or an inspection or disclosure”. (3) Subsection (f) of section 7431 of such Code, as redesignated by subsection (b), is amended to read as follows: “(f) Definitions.—For purposes of this section, the terms ‘inspect’, ‘inspection’, ‘return’, and ‘return information’ have the respective meanings given such terms by section 6103(b).”.111 STAT. 1106 (4)

26 USC 7431.

 The section heading for section 7431 of such Code is amended by inserting “inspection or” before “disclosure”. (5)

26 USC 7431 note.

 The table of sections for subchapter B of chapter 76 of such Code is amended by inserting “inspection or” before “disclosure” in the item relating to section 7431. (6) Paragraph (2) of section 7431(g) of such Code, as redesignated by subsection (b), is amended by striking “any use” and inserting “any inspection or use”. (e) Effective Date.—The amendments made by this section shall apply to inspections and disclosures occurring on and after the date of the enactment of this Act.
Approved August 5, 1997.
LEGISLATIVE HISTORY—H.R. 1226 (S. 522): HOUSE REPORTS: No. 105–51 (Comm. on Ways and Means). CONGRESSIONAL RECORD, Vol. 143 (1997):

Apr. 15, considered and passed House.

July 23, considered and passed Senate.

 WEEKLY COMPUTATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):

Aug. 5, Presidential statement.
POPULAR NAME INDEX Note: Part 1 contains pages 1–1106; Part 2 contains pages 1107–2114; Part 3 contains pages 2115–3010. Each part contains entire Popular Name and Subject Indexes. A1 Adoption and Safe Families Act of 1997 2115 Agricultural Market Transition Act, amendments 2108 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1996, amendments 2084 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1998 2079 Airport and Airway Trust Fund Tax Reinstatement Act of 1997 4 Alaska National Interest Lands Conservation Act, amendments 1592–1594 Amtrak Reform and Accountability Act of 1997 2570 Anadromous Fish Conservation Act, amendments 2677 Anti-Car Theft Improvements Act of 1996, amendments 2215 Antiterrorism and Effective Death Penalty Act of 1996, amendments 2468 Arms Export Control Act, amendments 2411, 2412 Army Reserve-National Guard Equity Reimbursement Act 2688 Asian Elephant Conservation Act of 1997 2150 Assisted Suicide Funding Restriction Act of 1997 23 Atlantic Striped Bass Conservation Act, amendments 2672 Atlantic Striped Bass Conservation Act Amendments of 1997 2672 Atomic Energy Act of 1954, amendments 2042 Aviation Insurance Reauthorization Act of 1997 2640 Balanced Budget Act of 1997 251 Balanced Budget Act of 1997, amendments 1098, 1099, 1519, 2187, 2188, 2521 Balanced Budget Downpayment Act, I, amendments 257, 1364, 1407 Balanced Budget and Emergency Deficit Control Act of 1985, amendments 697, 2125 Ballistic Missile Defense Act of 1995, amendments 1665 Budget Enforcement Act of 1997 677 Census of Agriculture Act of 1997 2274 Central Intelligence Agency Act of 1949, amendments 2257, 2258, 2260 Central Intelligence Agency Retirement Act, amendments 659 Charitable Donation Antitrust Immunity Act of 1997 241 Charitable Gift Annuity Antitrust Relief Act of 1995, amendments 241 Child Care and Development Block Grant Act of 1990, amendments 645, 646 Civil Justice Reform Act of 1990, amendments 1173 Clinger-Cohen Act of 1996, amendments 1849, 1851 Coast and Geodetic Survey Commissioned Officers’ Act of 1948, amendments 1803, 1804 Coast Guard Authorization Act of 1996, amendments 1599 Communications Act of 1934, amendments 258, 260, 265, 266, 268, 2540 Computer Security Act of 1987, amendments 1907 Congressional Budget Act of 1974, amendments 678–680, 682–688, 690–692, 695, 696, 2125 Congressional Budget and Impoundment Control Act of 1974, amendments 678, 684, 687, 688, 690, 692, 695–697 Congressional Operations Appropriations Act, 1991, amendments 1180 Congressional Operations Appropriations Act, 1998 1177 Consolidated Farm and Rural Development Act, amendments 2094, 2275 Consolidated Omnibus Budget Reconciliation Act of 1985, amendments 345, 550, 2685 Contract Disputes Act of 1978, amendments 1906 Contract with America Advancement Act of 1996, amendments 624 Controlled Substances Act, amendments 2328 Cost of Higher Education Review Act of 1997 207 Cranston-Gonzalez National Affordable Housing Act, amendments 1366A2 Defense Authorization Amendments and Base Closure and Realignment Act, amendments 1906, 1996 Defense Base Closure and Realignment Act of 1990, amendments 1997 Defense Conversion, Reinvestment, and Transition Assistance Act of 1992, amendments 1924 Delaware River Basin Compact, amendments 176 Department of Commerce and Related Agencies Appropriations Act, 1998 2471 Department of Defense Appropriation Authorization Act, 1978, amendments 1916 Department of Defense Appropriations Act, 1996, amendments 1735 Department of Defense Appropriations Act, 1997, amendments 1245 Department of Defense Appropriations Act, 1998 1203 Department of Education Appropriations Act, 1998 1496 Department of Energy Organization Act, amendments 245 Department of Energy Standardization Act of 1997 245 Department of Health and Human Services Appropriations Act, 1997, amendments 188, 637 Department of Health and Human Services Appropriations Act, 1998 1477 Department of the Interior and Related Agencies Appropriations Act, 1981, amendments 1568 Department of the Interior and Related Agencies Appropriations Act, 1989, amendments 1563 Department of the Interior and Related Agencies Appropriations Act, 1994, amendments 1547 Department of the Interior and Related Agencies Appropriations Act, 1995, amendments 1563 Department of the Interior and Related Agencies Appropriations Act, 1996, amendments 181, 1547, 1596 Department of the Interior and Related Agencies Appropriations Act, 1997, amendments 181, 1547, 1564 Department of the Interior and Related Agencies Appropriations Act, 1998 1543 Department of the Interior and Related Agencies Appropriations Act, 1998, amendments 2523 Department of Justice Appropriations Act, 1993, amendments 2460, 2467 Department of Justice Appropriations Act, 1995, amendments 2458 Department of Justice Appropriations Act, 1998 2440 Department of Labor Appropriation Act, 1958, amendments 1476 Department of Labor Appropriations Act, 1997, amendments 3 Department of Labor Appropriations Act, 1998 1467 Department of State and Related Agencies Appropriations Act, 1995, amendments 1158 Department of State and Related Agencies Appropriations Act, 1998 2494 Department of Transportation and Related Agencies Appropriations Act, 1996, amendments 2214 Department of Transportation and Related Agencies Appropriations Act, 1997, amendments 193, 195 Department of Transportation and Related Agencies Appropriations Act, 1998 1425 Department of Transportation and Related Agencies Appropriations Act, 1998, amendments 1522 Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1993, amendments 2460, 2467 Departments of Commerce, Justice, and State, the Judicially, and Related Agencies Appropriations Act, 1995, amendments 2458 Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1997, amendments 3, 1272A3 Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1998 2440 Departments of Labor, and Health, Education, and Welfare Appropriation Act, 1958, amendments 1476 Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 1997, amendments 3, 1519 Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 1998 1467 Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996, amendments 1364 Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997, amendments 201, 1366, 1374, 1407 Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998 1344 Depository Institutions Disaster Relief Act of 1997 211 Developmental Disabilities Assistance and Bill of Rights Act, amendments 28 Digital Performance Right in Sound Recordings Act of 1995, amendments 1534 District of Columbia Appropriations Act, 1998 2160 District of Columbia Bond Financing Improvements Act of 1997 768 District of Columbia Court Reform and Criminal Procedure Act of 1970, amendments 762 District of Columbia Depository Act of 1977, amendments 754 District of Columbia Financial Responsibility and Management Assistance Act of 1995, amendments 760, 777, 779, 782, 2186 District of Columbia Government Comprehensive Merit Personnel Act of 1978, amendments 14, 760, 2182 District of Columbia Income and Franchise Tax Act of 1947, amendments 2187 District of Columbia Inspector General Improvement Act of 1997 14 District of Columbia Management Reform Act of 1997 731 District of Columbia Police and Firemen’s Salary Act of 1958, amendments 1285, 2188 District of Columbia Policemen and Firemen’s Retirement and Disability Act, amendments 2184 District of Columbia Procurement Practices Act of 1985, amendments 777 District of Columbia Retirement Protection Act of 1997 715 District of Columbia Retirement Reform Act, amendments 758, 759, 2184 District of Columbia Revenue Act of 1939, amendments 765, 767, 768, 778 District of Columbia School Reform Act of 1995, amendments 2190–2193 District of Columbia Self-Government and Governmental Reorganization Act, amendments 753, 768, 2174, 2187 Dolphin Protection Consumer Information Act, amendments 1125, 1127, 1128 Drug-Free Communities Act of 1997 224 Drug-Free Workplace Act of 1988, amendments 1838 Earthquake Hazards Reduction Act of 1977, amendments 1159, 1162–1164 Economic Espionage Act of 1996, amendments 2568, 2569 Elementary and Secondary Education Act of 1965, amendments 214, 215, 1497, 1498, 1508 Emergency Student Loan Consolidation Act of 1997 1522 Emergency Supplemental Appropriations for Additional Disaster Assistance, for Antiterrorism Initiatives, for Assistance in the Recovery from the Tragedy that Occurred at Oklahoma City, and Rescissions Act, 1995, amendment 1364A4 Employee Retirement Income Security Act of 1974, amendments 647, 648, 948, 1058, 1061, 1062, 1066, 1069–1071, 1089, 1097, 1457, 2139, 2141 Energy Policy Act of 1992, amendments 237, 1097, 2634 Energy Policy and Conservation Act, amendments 676, 677 Energy and Water Development Appropriations Act, 1990, amendments 1323 Energy and Water Development Appropriations Act, 1998 1320 Everglades National Park Protection and Expansion Act of 1989, amendments 1541, 1542 Executive Office Appropriations Act, 1998 1290 Export-Import Bank Act of 1945, amendments 1158, 2528–2530 Export-Import Bank Reauthorization Act of 1997 2528 Fair Credit Reporting Act, amendments 2255 Fair Labor Standards Act of 1938, amendments 1477 Federal Acquisition Streamlining Act of 1994, amendments 1848, 1849 Federal Advisory Committee Act, amendments 2689 Federal Advisory Committee Act Amendments of 1997 2689 Federal Aviation Reauthorization Act of 1996, amendments 2215 Federal Credit Reform Act of 1990, amendments 692–695 Federal Deposit Insurance Act, amendments 238 Federal Election Campaign Act of 1971, amendments 1305, 1316 Federal Employees’ Retirement System Open Enrollment Act of 1997 1318 Federal Energy Administration Act of 1974, amendments 245 Federal Fire Prevention and Control Act of 1974, amendments 2264 Federal Food, Drug, and Cosmetic Act, amendments 2296 Federal Home Loan Bank Act, amendments 2633 Federal Housing Enterprises Financial Safety and Soundness Act of 1992, amendments 1403 Federal Law Enforcement Pay Reform Act of 1990, amendments 1288 Federal Noxious Weed Act of 1974, amendments 2108 Federal Physicians Comparability Allowance Act of 1978, amendments 1307 Federal Property and Administrative Services Act of 1949, amendments 244, 1167, 1300, 1836, 1850, 1851, 1906, 2468 50 States Commemorative Coin Program Act 2534 Food and Drug Administration Modernization Act of 1997 2296 Food Security Act of 1985, amendments 2276 Food Stamp Act of 1977, amendments 216, 217, 251, 252, 255, 256 Foreign Assistance Act of 1961, amendments 2433, 2435 Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1990, amendments 2432 Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1995, amendments 2416 Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1997, amendments 2430, 2438 Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1998 2386 Foreign Relations Authorization Act, Fiscal Years 1986 and 1987, amendments 2522 Foreign Relations Authorization Act, Fiscal Years 1994 and 1995, amendments 2471 Foreign Service Act of 1980, amendments 660, 661 Forest Resources Conservation and Shortage Relief Act of 1990, amendments 1618, 1620–1622 Forest Resources Conservation and Shortage Relief Act of 1997 1617 General Aviation Revitalization Act of 1994, amendments 2215 Hawaiian Homes Commission Act, 1920, amendments 235 Health Insurance Portability and Accountability Act of 1996, amendments 386, 1095A5 Higher Education Act of 1965, amendments 214, 648, 652, 1522 Hispanic Cultural Center Act of 1997 2543 Homeless Veterans Comprehensive Service Programs Act of 1992, amendments 2287, 2288 Hood Bay Land Exchange Act of 1997 1269 Hoopa Valley Reservation South Boundary Adjustment Act, amendments 1527 House of Representatives Administrative Reform Technical Corrections Act, amendments 1183, 1184 Housing Act of 1949, amendments 2110, 2111 Housing and Community Development Act of 1987, amendments 1419 Housing and Community Development Act of 1992, amendments 201 HUBZone Act of 1997 2627 HUD Demonstration Act of 1993, amendments 201 Illegal Immigration Reform and Immigrant Responsibility Act of 1996, amendments 641, 1175, 2196, 2198, 2199, 2201, 2644 Immigration and Nationality Act, amendments 1175, 1350, 1459, 1521, 1916, 2200, 2201, 2458, 2460, 2471, 2639 Immigration and Nationality Act of 1952, amendments 2457 Immigration and Nationality Act of 1990, amendments 2459 Immigration and Nationality Technical Corrections Act of 1994, amendments 1115 Improving America’s Schools Act of 1994, amendments 1140 Independent Agencies Appropriations Act, 1989, amendments 1299 Independent Agencies Appropriations Act, 1998 1295 Indian Gaming Regulatory Act, amendments 1566, 2522 Indian Health Care Improvement Act, amendments 27 Individuals with Disabilities Education Act, amendments 37 Individuals with Disabilities Education Act Amendments of 1997 37 Inspector General Act of 1978, amendments 2586 Intelligence Authorization Act, Fiscal Year 1990, amendments 1863 Intelligence Authorization Act for Fiscal Year 1996, amendments 2262 Intelligence Authorization Act for Fiscal Year 1998 2248 Intermodal Surface Transportation Efficiency Act of 1991, amendments 2553, 2556–2559 Internal Revenue Code of 1986, amendments 4, 331, 333, 334, 360, 486, 604, 605, 671–674, 721, 722, 788, 1104, 1319, 1412, 2204, 2560, 2561 International Air Transportation Competition Act of 1979, amendments 1447 International Dolphin Conservation Program Act 1122 International Financial Institutions Act, amendments 2426 Investment Advisers Supervision Coordination Act, amendments 15 John F. Kennedy Center Act, amendments 2148 John F. Kennedy Center Parking Improvement Act of 1997 2148 Judicial Improvements and Access to Justice Act, amendments 1173 Judicial Improvements Act of 1990, amendments 1173 Judiciary Appropriations Act, 1998, The 2488 Land and Water Conservation Fund Act of 1965, amendments 1617 Law Enforcement Technology Advertisement Clarification Act of 1997 2273 Legal Services Corporation Act, amendments 28 Legislative Branch Appropriation Act, 1968, amendments 192 Legislative Branch Appropriations Act, 1987, amendments 1184 Legislative Branch Appropriations Act, 1991, amendments 1180, 1201 Legislative Branch Appropriations Act, 1996, amendments 1183 Legislative Branch Appropriations Act, 1998 1177 Lower Brule Sioux Tribe Infrastructure Development Trust Fund Act 2563A6 Marine Mammal Protection Act of 1972, amendments 174, 187, 1122, 1137 Marjory Stoneman Douglas Wilderness and Ernest F. Coe Visitor Center Designation Act 1540 Merchant Marine Act, 1936, amendments 835, 2075, 2076 Miccosukee Settlement Act of 1997 1624 Michigan Indian Land Claims Settlement Act 2652 Military Construction Appropriations Act, 1998 1142 Military Construction Authorization Act, 1968, amendments 2015 Military Construction Authorization Act, 1985, amendments 2007, 2010 Military Construction Authorization Act for Fiscal Year 1995, amendments Military Construction Authorization Act for Fiscal Year 1996, amendments 2014 Military Construction Authorization Act for Fiscal Year 1997, amendments 1973, 1974, 1977, 1981, 1983, 2007, 2009 Military Construction Authorization Act for Fiscal Year 1998 1966 Military Selective Service Act, amendments 1783 Morris K. Udall Parkinson’s Disease Research Act of 1997 1519 Multifamily Assisted Housing Reform and Affordability Act of 1997 1384 Museum and Library Services Act, amendments 2548 Museum and Library Services Technical and Conforming Amendments of 1997 2548 Nation’s Capital Bicentennial Designation Act 2180 National Capital Revitalization and Self-Government Improvement Act of 1997 712 National Defense Authorization Act for Fiscal Year 1986, amendments 1885 National Defense Authorization Act, Fiscal Year 1989, amendments 1801, 1885, 2042 National Defense Authorization Act for Fiscal Year 1991, amendments 1702, 1840, 1905 National Defense Authorization Act for Fiscal Year 1993, amendments 1709, 1905, 2042 National Defense Authorization Act for Fiscal Year 1994, amendments 1915, 2042, 2048 National Defense Authorization Act for Fiscal Year 1995, amendments 1524, 1667, 1815, 1834, 1982, 2040 National Defense Authorization Act for Fiscal Year 1996, amendments 1649, 1702, 1713, 1714, 1758, 1845, 1869, 1880, 1885, 1905, 2006, 2014, 2042 National Defense Authorization Act for Fiscal Year 1997, amendments 1649, 1657, 1666, 1686, 1809, 1810, 1813, 1845, 1860, 1881, 1904, 1954, 1955, 1973, 1974, 1977, 1981, 1983, 2007, 2009, 2039, 2042, 2047, 2049, 2050 National Defense Authorization Act for Fiscal Year 1998 1629 National Defense Authorization Act for Fiscal Year 1998, amendments 2525, 2551 National Defense Authorization Act for Fiscal Years 1988 and 1989, amendments 1906 National Defense Authorization Act for Fiscal Years 1990 and 1991, amendments 1840, 2042 National Defense Authorization Act for Fiscal Years 1992 and 1993, amendments 1905, 1918 National Flood Insurance Act, amendments 1377 National Flood Insurance Act of 1968, amendments 1157, 1377 National Foundation on the Arts and the Humanities Act of 1965, amendments 1605, 1606, 2522 National Gambling Impact Study Commission Act, amendments 248 National Geologic Mapping Act of 1992, amendments 1107 National Geologic Mapping Reauthorization Act of 1997 1107 National Health Museum Development Act 1524 National Housing Act, amendments 201, 1366, 1367, 1406, 1409, 1412–1414 National Institute of Standards and Technology Act, amendments 1907 National Maritime Heritage Act of 1994, amendments 1878 National Narcotics Leadership Act of 1988, amendments 224A7 National Parks and Recreation Act of 1978, amendments 1541 National Security Act of 1947, amendments 2251, 2252, 2261 National Telecommunications and Information Administration Organization Act, amendments 262–265 National Wildlife Refuge System Administration Act of 1966, amendments 1252 National Wildlife Refuge System Improvement Act of 1997 1252 Need-Based Educational Aid Antitrust Protection Act of 1997 1140 New Mexico Statehood and Enabling Act Amendments of 1997 1113 Nicaraguan Adjustment and Central American Relief Act 2193 Nicaraguan Adjustment and Central American Relief Act, amendments 2644 1997 Emergency Supplemental Appropriations Act for Recovery from Natural Disasters, and for Overseas Peacekeeping Efforts, Including Those in Bosnia 158 1997 Emergency Supplemental Appropriations Act for Recovery from Natural Disasters, and for Overseas Peacekeeping Efforts, Including Those in Bosnia, amendments 1248, 1272 No Electronic Theft (NET) Act 2678 Northeast Rail Service Act of 1981, amendments 2586 Office of Federal Procurement Policy Act, amendments 1837, 1838, 1843, 1847–1849, 1851, 1906, 2634 Oklahoma City National Memorial Act of 1997 1261 Omnibus Appropriations Act for Fiscal Year 1997, amendments 1564 Omnibus Budget Reconciliation Act of 1986, amendments 549, 550 Omnibus Budget Reconciliation Act of 1987, amendments 336 Omnibus Budget Reconciliation Act of 1989, amendments 425, 528 Omnibus Budget Reconciliation Act of 1990, amendments 665 Omnibus Budget Reconciliation Act of 1993, amendments 260, 337, 376, 712, 1097, 2130 Omnibus Consolidated Appropriations Act, 1997, amendments 3, 181, 188, 637, 1289, 1547 Omnibus Consolidated Rescissions and Appropriations Act of 1996, amendments 181, 1547, 1596, 2185 Omnibus Crime Control and Safe Streets Act of 1968, amendments 2468 Omnibus Parks and Public Lands Management Act of 1996, amendments 1566, 1595, 1607 Oroville-Tonasket Claim Settlement and Conveyance Act 16 Pam Lychner Sexual Offender Tracking and Identification Act of 1996, amendments 2464 Panama Canal Act of 1979, amendments 2063 Panama Canal Commission Authorization Act for Fiscal Year 1998 2062 Panama Canal Commission Compensation Fund Act of 1988, amendments 2072 Panama Canal Transition Facilitation Act of 1997 2062 Parole Commission Phaseout Act of 1996, amendments 745 Peace Corps Act, amendments 27 Personal Responsibility and Work Opportunity Reconciliation Act of 1996, amendments 191, 595, 597–603, 618–621, 623, 637, 640–643 Philippine Army, Scouts, and Guerilla Veterans of World War II Naturalization Act of 1997 2459 Pilot Records Improvement Act of 1996, amendments 2650 Postal Service Appropriations Act, 1998 1290 President John F. Kennedy Assassination Records Collection Act of 1992, amendments 240 Protection and Advocacy for Mentally Ill Individuals Act of 1986, amendments 28 Public Health Service Act, amendments 27, 29, 574, 1494, 1520, 1804, 2296 Reclamation Wastewater and Groundwater Act, amendments 1339A8 Rehabilitation Act of 1973, amendments 28 Retirement Protection Act of 1994, amendments 1067 Riegle-Neal Amendments Act of 1997 238 Rocky Mountain Arsenal National Wildlife Refuge Act of 1992, amendments 2007 San Carlos Apache Tribe Water Rights Settlement Act of 1992, amendments 181, 182, 187 Satellite Home Viewer Act of 1994, amendments 1529, 1530 Savings Are Vital to Everyone’s Retirement Act of 1997 2139 Sikes Act, amendments 2016–2018, 2020–2023 Sikes Act Improvement Act of 1997 2016 Small Business Act, amendments 1848, 1906, 2594, 2597, 2598, 2600, 2606, 2611, 2617–2624, 2627, 2629, 2631, 2632, 2635, 2637 Small Business Administration Reauthorization and Amendment Act of 1988, amendments 2624 Small Business Administration Reauthorization and Amendments Act of 1994, amendments 2606, 2624, 2627 Small Business Competitiveness Demonstration Program Act of 1988, amendments 174, 2616 Small Business Economic Policy Act of 1980, amendments 2633, 2637 Small Business Investment Act of 1958, amendments 2601–2604, 2633 Small Business Job Protection Act of 1996, amendments 987, 1086 Small Business Reauthorization Act of 1997 2592 Smith-Hughes Vocational Education Act, amendments 653 Social Security Act, amendments 26, 27, 34, 204, 270, 577, 711, 880, 961, 962, 1063, 1319, 1412, 1517, 1518, 1521, 1522, 2116–2118, 2120–2122, 2125–2128,2130–2134, 2188–2190 Social Security Amendments of 1983, amendments 550 Social Security Amendments of 1994, amendments 644 Social Security Independence and Program Improvements Act of 1994, amendments 625 Stamp Out Breast Cancer Act 1119 Stewart B. McKinney Homeless Assistance Act, amendments 2288 Strategic and Critical Materials Stock Piling Act, amendments 2058 Supplemental Appropriations Act, 1973, amendments 1180 Supplemental Appropriations Act, 1987, amendments 192 Support for East European Democracy Act, amendments 2438 Surface Transportation Extension Act of 1997 2552 Susquehanna River Basin Compact, amendments 176 Tax Reform Act of 1984, amendments 1098 Tax Reform Act of 1986, amendments 959, 1098 Taxpayer Bill of Rights 2, amendments 1096 Taxpayer Browsing Protection Act 1104 Taxpayer Relief Act of 1997 788 Technical and Miscellaneous Revenue Act of 1988, amendments 995 Third Supplemental Appropriations Act, 1957, amendments 1181 Trade Act of 1974, amendments 902 Treasury Department Appropriations Act, 1998 1272 Treasury and General Government Appropriations Act, 1998 1272 Treasury and General Government Appropriations Act, 1998, amendments 1451, 2523 Treasury, Postal Service and General Government Appropriations Act, 1989 1299 Treasury, Postal Service and General Government Appropriations Act, 1992, amendments 1306 Treasury, Postal Service and General Government Appropriations Act, 1997, amendments 1288 Tuna Conventions Act, amendments 1137, 1138 Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, amendments 2384 United States Fire Administration Authorization Act for Fiscal Years 1998 and 1999 2264A9 United States Housing Act of 1937, amendments 201, 257, 639, 1364, 1365, 1406, 1407, 1416 United States $1 Coin Act of 1997 2536 Uruguay Round Agreements Act, amendments 1097 USEC Privatization Act, amendments 1341 Veterans’ Benefits Act of 1997 2277 Veterans’ Benefits Improvement Act of 1994, amendments 2288 Veterans’ Benefits and Services Act of 1988, amendments 2287 Veterans’ Cemetery Protection Act of 1997 2202 Veterans’ Compensation Rate Amendments of 1997 2155 Veterans’ Medical Programs Amendments of 1992, amendments 2287 Veterans Reconciliation Act of 1997 663 Victim Rights Clarification Act of 1997 12 Victims of Crime Act of 1984, amendments 2457 Violent Crime Control and Law Enforcement Act of 1994, amendments 702, 2461–2464 Volunteer Protection Act of 1997 218 War Crimes Act of 1996, amendments 2436 Warner Canyon Ski Hill Land Exchange Act of 1997 1117 Weapons of Mass Destruction Control Act of 1992, amendments 1956 Women’s Business Ownership Act of 1988, amendments 2608–2611, 2634 Yavapai-Prescott Indian Treaty Settlement Act of 1994, amendments 1339 SUBJECT INDEX See Children, Youth, and Families Law Enforcement Technology Advertisement Clarification Act of 1997 2273 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1998 2079 Census of Agriculture Act of 1997 2274 Food and Drug Administration Modernization Act of 1997 2296 Grand Teton National Park Study, gazing use and open space 1537 See Transportation See Transportation Alabama-Coosa-Tallapossa River Basin Compact 2233 Apalachicola-Chattahoochee-Flint River Basin Compact 2219 Department of the Interior and Related Agencies Appropriations Act, 1998 1543 Hood Bay Land Exchange Act of 1997 1269 Alaska Pulp Corporation 1269 See Immigration Incorporation, technical correction 2270 See Transportation Charitable Donation Antitrust Immunity Act of 1997 241 Need-Based Educational Aid Antitrust Protection Act of 1997 1140 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies, 1998 2079 Amtrak Reform and Accountability Act of 1997 2570 Central Intelligence Agency Retirement and Disability System 2248 Earthquake hazards reduction 1159 Intelligence Authorization Act for Fiscal Year 1998 2248 Military Construction Authorization Act for Fiscal Year 1998 1966 National Defense Authorization Act for Fiscal Year 1998 1629 Panama Canal Commission Authorization Act for Fiscal Year 1998 2062 Refugee and entrant assistance 2639 U.S. district courts, arbitration 1173 Commerce Department and related agencies, 1998 2471 Commerce, Justice, and State, the Judiciary, and related agencies, 1998 2440 Congressional operations, 1998 1177 Continuing, 1998 1153,1343,1453,1454, 1456,1628 Defense Department, 1998 1203 District of Columbia, 1998 2160 Education Department, 1998 1496 Emergency supplemental, 1997 158 Energy and water development, 1998 1320 Executive Office, 1998 1290 Foreign operations, export financing, and related programs, 1998 2386 Health and Human Services Department, 1998 1477 Independent agencies, 1998 1295 Interior Department and related agencies, 1998 1543 Judiciary, 1998 2488 Justice Department, 1998 2440 Labor Department, 1998 1467 Labor, Health and Human Services, and Education, and related agencies, 1998 1467 Legislative Branch, 1998 1177 Military construction, 1998 1142 Omnibus Consolidated Appropriations Act, 1997, technical corrections 3 Postal Service, 1998 1290 State Department and related agencies, 1998 2494 Transportation Department and related agencies, 1998 1425 Treasury and general Government, 1998 1272 Treasury Department, 1998 1272 Veterans Affairs and Housing and Urban Development, and independent agencies, 1998 1344 Aristide, Jean-Bertrand 2502 Arkansas Post National Memorial, boundary adjustment 1567 1997 Emergency Supplemental Appropriations Act for Recovery from Natural Disasters, and for Overseas Peacekeeping Efforts, Including Those in Bosnia 158 Air Force Sergeants Association, federal charter, recognition and grant 1963B2 Army Reserve-National Guard Equity Reimbursement Act 2688 Department of Defense Appropriations Act, 1998 1203 Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1998 2386 Military Construction Authorization Act for Fiscal Year 1998 1966 National Defense Authorization Act for Fiscal Year 1998 1629 Public Affairs Specialty, establishment 1765 Technical corrections 2551 National Defense Authorization Act for Fiscal Year 1998 1947 See Armed Forces Permanent authority 1165 See Transportation Robert R. Ingram, medal of honor 2218 Baillergeau, Eugene 2520 Baker, Vernon J. 1759 Depository Institutions Disaster Relief Act of 1997 211 Export-Import Bank Reauthorization Act of 1997 2528 Riegle-Neal Amendments Act of 1997 238 See Fish and Wildlife Beaubrun, Mario 2520 Bertin, Mireille Durocher 2520 Better Health Plan Inc. 249 Advisory Commission on Drug-Free Communities, establishment 231 Amtrak Reform Board, establishment 2588 Amtrak Reform Council, establishment 2579 Assassination Records Review Board, extension 240 Commission on Military Training and Gender-Related Issues, establishment 1750 Department of Energy Security Management Board, establishment 2048 District of Columbia Correction Information Council, establishment 736 District of Columbia Truth in Sentencing Commission, establishment 740 Federal Advisory Committee Act Amendments of 1997 2689 Franklin Delano Roosevelt Memorial Commission, termination 1601 Medicare Payment Advisory Commission, establishment 350 National Bipartisan Commission on the Future of Medicare, establishment 347 National Commission on the Cost of Higher Education, establishment 207 National Council on the Arts, appointment and composition 1605 National Gambling Impact Study Commission, tort claims, clarification 248 National Health Museum Commission, establishment 1525 North Pacific Research Board, establishment 1608 Panama Canal Board of Contract Appeals, establishment 2071 Panama Canal Commission Authorization Act for Fiscal Year 1998 2062 Physician Payment Review Commission membership, term extension 31 Prospective Payment Assessment Commission membership, term extension 31 See Securities 1997 Emergency Supplemental Appropriations Act for Recovery from Natural Disasters, and for Overseas Peacekeeping Efforts, Including Those in Bosnia 158 Brennan, William J., Jr. 2963 Budget Balanced Budget Act of 1997 251 Budget Enforcement Act of 1997 677 Taxpayer Relief Act of 1997 788 Business and Industry HUBZone Act of 1997 2627 Small Business Reauthorization Act of 1997 2592 Carlos J. Moorhead Post Office Building, designation 2114 Hoopa Valley Reservation South Boundary Adjustment Act 1527 Land conveyance 1166 Trinity Lake, designation 1141B3 See Water See Health and Health Care Law enforcement donation, surplus, authorization 244 Warner Canyon Ski Hill Land Exchange Act of 1997 1117 Carter, Edward A. 1759 Arlington National Cemetery, interment or memorialization prohibition 2381 National Cemetery System, interment or memorialization prohibition 2381 State-owned veterans cemeteries, grant conditions 2382 Census of Agriculture Act of 1997 2274 Chalot, John Andre 2699 See Nonprofit Organizations Adoption and Safe Families Act of 1997 2115 International children, immunization requirements, exemption 1459 Boys and Girls Clubs of America, grants 2568 Certificate of citizenship, special transition rule, elimination 1115 Drug-Free Communities Act of 1997 224 Individuals with Disabilities Education Act Amendments of 1997 37 International family planning programs, Presidential finding 9 Missing children, penalty and franked mail authorization, extension 2542 Chilove, Joseph 2520 Christian, William H., Jr. 1172 Christopher, Warren 2705 Office of Employment Discrimination Complaint Adjudication, establishment 2280 Miccosukee Settlement Act of 1997 1624 Michigan Indian Land Claims Settlement Act 2652 National Gambling Impact Study Commission, tort clarification 248 Oronville-Tonasket Claim Settlement and Conveyance Act 16 See Currency See Education Eagles Nest Wilderness, expansion 1462 Land exchange 1460 Raggeds Wilderness, boundary adjustment and land conveyance 1463 White River National Forest, boundary adjustment 1465 Department of Commerce and Related Agencies Appropriations Act, 1998 2471 United States Trade Representative, appointment waiver 11 See Boards and Commissions Law Enforcement Technology Advertisement Clarification Act of 1997 2273 No Electronic Theft (NET) Act 2678 Satellite carriers, transmission fees 1529 Telecommunications, common carriers, designation 2540 Adjournment 2703, 2704, 2706, 2760, 2762, 2764, 2768 Days of remembrance of victims of the Holocaust, ceremony 2706 Jack Swigert 2707 Leslie Townes Hope 2766 Mother Teresa 2709 National Peace Officers’ Memorial Service 2708 Olympic torch relay 2710 Patriarch Bartholomew 2764 SAFE KIDS Buckle Up Car Seat Safety Check 2761 Soap box derby races 2709 Coral reef ecosystems 2765 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1998 2766 Export-Import Bank Reauthorization Act of 1997 2769 Federal Budget, fiscal year 1988 2710 High fructose corn syrup 2763 Joint session 2703, 2704, 2768 Presidential inauguration 2703 “How Our Laws Are Made” 2767B4 “Our Flag” 2766 “The Constitution of the United States of America” 2767 Robinson, Jackie, lifetime achievements 2706 Warren Christopher 2705 William J. Brennan 2761 Congressional gold medals Francis Albert Sinatra 32 Mother Teresa 35 Patriarch Bartholomew 1170 Congressional Operations Appropriations Act, 1998 1177 Enrolled bills, parchment printing, waiver 250, 2527 Hawaiian Homes Commission amendments, consent 235 Alabama-Coosa-Tallapoosa River Basin Compact, congressional consent 2233 Apalachicola-Chattahoochee-Flint River Basin Compact 2219 Chickasaw Trail Economic Development Compact 2669 Metropolitan Area Transit Regulation Compact 2686 Legislative Branch Appropriations Act, 1998 1177 Library of Congress, national audiovisual conservation center, property acquisition 2667 One Hundred Fifth Congress, second session, convening 2646 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1998 2091 Asian Elephant Conservation Act of 1997 2150 Department of the Interior and Related Agencies Appropriations Act, 1998 1543 Forest Resources Conservation and Shortage Relief Act of 1997 1617 International Dolphin Conservation Program Act 1122 J. Phil Campbell, Senior, Natural Resource Conservation Center, GA, designation 21 National Wildlife Refuge System Improvement Act of 1997 1252 Sikes Act Improvement Act of 1997 2016 See Drugs and Drug Abuse Arbitration panels, establishment 1533 Fees 1529 No Electronic Theft (NET) Act 2678 Registration and infringement actions 1532 Restored works 1530 Satellite carriers 1529 Judiciary Appropriations Act, 1998 2488 U.S. district courts, arbitration, appropriation authorization 1173 50 States Commemorative Coin Program Act 2534 United States $1 Coin Act of 1997 2536 User fees, access 2685 Davis, John Wesley 2697 Congressional gold medal 32, 35, 1170 Medal of honor 2218 See Banks and Banking See Handicapped 1997 Emergency Supplemental Appropriations Act for Recovery from Natural Disasters, and for Overseas Peacekeeping Efforts, Including Those in Bosnia 158 Depository Institutions Disaster Relief Act of 1997 211 Earthquake hazards reduction, appropriations authorization 1159 Hansen’s Disease 1494 Morris K. Udall Parkinson’s Disease Research Act of 1997 1519 Annual Federal payment, eliminated 777 Balanced Budget Act of 1997 251 District of Columbia Appropriations Act, 1998 2160 District of Columbia Bond Financing Improvements Act of 1997 768 District of Columbia Correction Information Council, establishment 736 District of Columbia Inspector General Improvement Act 14 District of Columbia Management Reform Act of 1997 731 District of Columbia Retirement Protection Act of 1997 715 District of Columbia’ Truth in Sentencing Commission, establishment 740B5 Federal Bureau of Investigation, Washington Field Office Memorial Building, designation 1172 Franklin Delano Roosevelt Memorial, addition 246 Metropolitan Area Transit Regulation Compact 2686 Metropolitan Washington Airports 2205 Nation’s Capital Bicentennial Designation Act 2180 National Capital Revitalization and Self-Government Improvement Act of 1997 712 National Health Museum, DC, designation 1525 Offender Supervision, Defender and Courts Services Agency, establishment 748 Taxpayer Relief Act of 1997 788 See Canines International Dolphin Conservation Program Act 1122 Dos Palos Ag Boosters 1166 Drug-Free Communities Act of 1997 224 Food and Drug Administration Modernization Act of 1997 2296 Dumarsais, Romulus 2520 See Disaster Assistance Balanced Budget Act of 1997 251 Center for Historically Black Heritage, FL, construction 2642 Cost of Higher Education Review Act of 1997 207 Department of Education Appropriations Act, 1998 1496 Emergency Student Loan Consolidation Act of 1997 1522 Individuals with Disabilities Education Act Amendments of 1997 37 Need-Based Educational Aid Antitrust Protection Act of 1997 1140 Office of Special Education Programs, establishment 46 Taxpayer Relief Act of 1997 788 See Energy See Communications Asian Elephant Conservation Act of 1997 2150 See Labor and Employment Department of Energy Standardization Act of 1997 245 Electric and magnetic fields research and public information dissemination program, extension 237 Energy and Water Development Appropriations Act, 1998 1320 See Suicide Export-Import Bank Reauthorization Act of 1997 2528 Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1998 2386 Exume, Jean-Joseph 2520 See Federal Buildings and Facilities See Children, Youth and Families Andrew Jacobs, Jr. Post Office Building, IN, designation 2137 Carlos J. Moorhead Post Office Building, CA, designation 2114 David B. Champagne Post Office Building, RI, designation 1455 David W. Dyer Federal Building and United States Courthouse, FL, designation 2146 Douglass Applegate Post Office, OH, designation 2154 Federal Bureau of Investigation, Washington Field Office Memorial Building, DC, designation 1172 Frank M. Tejeda Post Office Building, TX, designation 10 Howard M. Metzenbaum United States Courthouse, OH, designation 2533 J. Phil Campbell, Senior, Natural Resources Conservation Center, GA, designation 21 J. Roy Rowland United States Courthouse, GA, designation 2147 John F. Kennedy Center Parking Improvement Act of 1997 2148 John N. Griesemer Post Office Building, MO, designation 2562 John T. Myers Post Office Building, IN, designation 2138 Martin V.B. Bostetter, Jr. United States Courthouse, VA, designation 2532B6 Oscar Garcia Rivera Post Office Building, NY, designation 2113 Peter J. McCloskey Postal Facility, PA, designation 2159 Robert J. Dole United States Courthouse, KS, designation 1342 Wm. Jennings Bryan Dorn Department of Veterans Affairs Medical Center, SC, designation 2294 Feuille, Jean-Hubert 2520 See Banks and Banking United States Fire Administration Authorization Act for Fiscal Years 1998 and 1999 2264 Atlantic Striped Bass Conservation Act Amendments of 1997 2672 Sikes Act Improvement Act of 1997 2016 Fleurival, Jacques 2520 Apalachicola-Chattahoochee-Flint River Basin Compact 2219 Center for Historically Black Heritage, construction 2642 David W. Dyer Federal Building and United States Courthouse, designation 2146 Marjory Stoneman Douglass Wilderness and Ernest F. Coe Visitor Center Designation Act 1540 Miccosukee Settlement Act of 1997 1624 Florida A&M University 2642 See Agriculture Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1998 2101 Department of State and Related Agencies Appropriations Act, 1998 2494 Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1998 2386 Hong Kong Economics and Trade Offices, privileges, exemptions, and immunities, extension 236 International population planning program, Presidential finding, approval 9 National Defense Authorization Act for Fiscal Year 1998 1927, 1958 Nicaraguan Adjustment and Central American Relief Act 2193 Forest Resources Conservation and Shortage Relief Act of 1997 1617 See Children, Youth, and Families National Geologic Mapping Reauthorization Act of 1997 1107 Alabama-Coosa-Tallapoosa River Basin Compact 2233 Apalachicola-Chattahoochee-Flint River Basin Compact 2219 J. Roy Rowland United States Courthouse, designation 2147 Plains Railroad Depot, acquisition 2247 Canines, law enforcement surplus donation, authorization 244 Charitable donation, surplus property 1167 Gonzalez, Michel 2520 Balanced Budget Act of 1997 251 Federal Employees’ Retirement System Open Enrollment Act of 1997 1318 Taxpayer Browsing Protection Act 1104 District of Columbia, annual Federal payment, eliminated 777 District of Columbia Management Reform Act of 1997 731 District of Columbia Offender Supervision, Defender and Courts Services Agency, establishment 748 Office of Employment Discrimination Complaint Adjudication, establishment 2280 Office of Multifamily Housing Assistance Restructuring, establishment 1420 Office of Special Education Programs, establishment 46 Office of Women’s Business Ownership, establishment 2613 Oklahoma City National Memorial Trust, establishment 1262 Boys and Girls Clubs of America 2568 Center for Historically Black Heritage, FL, construction 2642 Hispanic Cultural Center Act of 1997 2543 Grimar, Leslie 2520 Group Hospitalization and Medical Services, Inc. 2684B7 Individuals with Disabilities Education Act Amendments of 1997 37 Hawaiian Homes Commission amendments, congressional consent 235 Assisted Suicide Funding Restriction Act of 1997 23 Balanced Budget Act of 1997 251 Department of Health and Human Services Appropriations Act, 1998 1477 Group Hospitalization and Medical Services, Inc. Federal charter, amendment 2684 Medicare and Medicaid Better Health Plan Inc., medicaid enrollment rule, waiver 249 Medicare+Choice Program, establishment 275 National Health Museum Development Act 1524 Nurses and Nursing Training and competency evaluation programs 34 Stamp Out Breast Cancer Act 1119 Hermann, Michelange 2520 Plains Railroad Depot, GA, acquisition 2247 Economic and Trade Offices, privileges, exemptions, and immunities, extension 236 Balanced Budget Act of 1997 251 Department of Veterans Affairs and Housing and Urban Development and Independent Agencies Appropriations Act, 1998 1344 Low-income housing, surplus property, donation 1167 Multifamily Assisted Housing Reform and Affordability Act of 1997 1384 Office of Multifamily Housing Assistance Restructuring, establishment 1420 Taxpayer Relief Act of 1997 788 Au pairs programs 1165 Certificate of citizenship, special transition rule for children, elimination 1115 Charities, visa fees, waiver 1175 Deportable aliens awaiting arraignment identification program, establishment 2647 Displaced persons, relocation assistance and real property acquisition, prohibition 2384 Employer sanctions program, paperwork deadline, extension 1175 Internationally adopted children, immunization requirements, exemption 1459 Nicaraguan Adjustment and Central American Relief Act 2193 Philippine Army, Scouts, and Guerilla Veterans of World War II Naturalization Act of 1997 2459 Refugee and entrant assistance, appropriation authorization 2639 Special immigrant religious worker program, extension 1175 Technical corrections 2644 See Exports and Imports Andrew Jacobs, Jr. Post Office Building, designation 2137 John T. Myers Post Office Building, designation 2138 Inskeep, Jean H. 2667 Inskeep, Russell H. 2667 Aviation Insurance Reauthorization Act of 1997 2640 Amtrak Reform and Accountability Act of 1997 2570 Atlantic Striped Bass Conservation Act Amendments of 1997 2672 Charitable donation, surplus property 1167 Individuals with Disabilities Education Act Amendments of 1997 37 Riegle-Neal Amendments Act of 1997 238 See Foreign Relations See Foreign Relations Alabama Coosa-Tallapoosa River Basin Compact 2233 Apalachicola-Chattahoochee-Flint River Basin Compact 2219 Chickasaw Trail Economic Development Compact 2669 Metropolitan Area Transit Regulation Compact 2686 See Securities Izmery, Antoine 2520B8 Robert J. Dole United States Courthouse, designation 1342 Department of Labor Appropriations Act, 1998 1467 Immigration, sanctions program, extension 1175 Investment managers, employee benefits, registration 1457 Office of Employment Discrimination Complaint Adjudication, establishment 2280 Pilots records 2650 Lake, Anthony 2520 Canines, surplus donation, authorization 244 Department of Justice Appropriations Act, 1998 2440 Law Enforcement Technology Advertisement Clarification Act of 1997 2273 No Electronic Theft (NET) Act 2678 Deportable aliens awaiting arraignment identification program, establishment 2647 Veterans’ Cemetery Protection Act of 1997 2202 Victims Rights Clarification Act of 1997 12 Leroy, Antoine 2520 Museum and Library Services Technical and Conforming Amendments of 1997 2548 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1998 2079 Balanced Budget Act of 1997 251 Department of Defense Appropriations Act, 1998 1203 Department of the Interior and Related Agencies Appropriations Act, 1998 1543 Department of Transportation and Related Agencies Appropriations Act, 1998 1425 Department of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998 1344 Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1998 2440 Energy and Water Development Appropriations Act, 1998 1320 Military Construction Appropriations Act, 1998 1142 Taxpayer Relief Act of 1997 788 Treasury and General Government Appropriations Act, 1998 1272 Emergency Student Loan Consolidation Act of 1997 1522 Penalty and franked mail authorization, missing children, extension 2542 Malary, Guy 2520 National Geologic Mapping Reauthorization Act of 1997 1107 Marie, Claude Yves 2520 International Dolphin Conservation Program Act 1122 Martinez, Martha Dixon 1172 Metropolitan Area Transit Regulation Compact 2686 Mayard, Max 2520 See Health and Health Care Meili, Davide 2695 Meili, Giuseppina 2695 Meili, Michel Christopher 2695 Meili, Mirjam Naomi 2695 Michigan Indian Land Claims Settlement Act 2652 Reversionary land interest, release 1268 See National Defense Miller, Michael J. 1172 Department of the Interior and Related Agencies Appropriations Act, 1998 1543 Center for Historically Black Heritage, FL, construction 2642 Hispanic Cultural Center Act of 1997 2543 Office of Women’s Business Ownership, establishment 2613 Chickasaw Trail Economic Development Compact 2669 John N. Griesemer Post Office Building, designation 2562 Moser, Roy Desmond 2698B9 Museum and Library Services Technical and Conforming Amendments of 1997 2548 National Health Museum Development Act 1524 See Drugs and Drug Abuse Department of Defense Appropriations Act, 1998 1203 Intelligence Authorization Act for Fiscal Year 1998 2248 Military Construction Appropriations Act, 1998 1142 National Defense Authorization Act for Fiscal Year 1998 1629 Technical corrections 2551 Hoopa Valley Reservation South Boundary Adjustment Act 15227 White River National Forest, CO, boundary adjustment 1465 Army Reserve-National Guard Equity Reimbursement Act 2688 Arkansas Post National Memorial, AR, boundary adjustment 1567 Bandelier National Monument, NM, land transfer 2050 Franklin Delano Roosevelt Memorial, DC, addition 246 Grand Teton National Park study, WY, grazing and open space 1537 Marjory Stoneman Douglass Wilderness and Ernest F. Coe Visitor Center Designation Act 1540 Oklahoma City National Memorial Act of 1997 1261 Eagles Nest Wilderness, CO, expansion 1462 Raggeds Wilderness, CO, boundary adjustment and land conveyance 1463 National Wildlife Refuge System Improvement Act of 1997 1252 Department of the Interior and Related Agencies Appropriations Act, 1998 1543 Hoopa Valley Reservation South Boundary Adjustment Act 1527 Lower Brule Sioux Tribe Infrastructure Development Trust Fund Act 2563 Miccosukee Settlement Act of 1997 1624 Michigan Indian Land Claims Settlement Act 2652 See Disaster Assistance See Conservation Department of the Interior and Related Agencies Appropriations Act, 1998 1570 Hispanic Cultural Center Act of 1997 2543 Land conveyance 2523 New Mexico Statehood and Enabling Act Amendments of 1997 1113 Oscar Garcia Rivera Post Office Building, NY, designation 2113 Charitable Donation Antitrust Immunity Act of 1997 241 Donation, surplus property 1167 Nonimmigrants, visa fees, waiver 1175 Volunteer Protection Act of 1997 218 See Health and Health Care Douglas Applegate Post Office, designation 2154 Howard M. Metzenbaum United States Courthouse, designation 2533 Land conveyance 2268 Oklahoma City National Memorial Act of 1997 1261 Land conveyance 1116 Warner Canyon Ski Hill Land Exchange Act of 1997 1117 Palmisano, Anthony 1172 Panama Canal Commission Authorization Act for Fiscal Year 1998 2062 Panama Canal Transition Facilitation Act of 1997 2062 Patten, Christopher F. 1947 Peter J. McCloskey Postal Facility, designation 2159B10 Stamp Out Breast Cancer Act 1119 International family planning programs, finding 9 Preval, Rene 2520 See Law Enforcement and Crime Taxpayer Browsing Protection Act 1104 William J. Brennan, Jr. 2963 Adoption Month 2796, 3006 African American History Month 2857 America Goes Back to School 2970 American Heart Month 2858 American Indian Heritage Month 2809, 3005 American Red Cross Month 2861 Asian/Pacific American Heritage Month 2902 Austrian-American Day 2982 Bill of Rights Day 2838 Breast Cancer Awareness Month 2984 Cancer Control Month 2868 Captive Nations Week 2961 Character Counts Week 2781, 3000 Child Abuse Prevention Month 2870 Child Health Day 2776, 2989 Child Passenger Safety Week 2860 Children’s Day 2783, 2997 Citizenship Day 2976 Columbus Day 2784, 2996 Constitution Week 2976 Consumers Week 2794, 3003 Crime Victims’ Rights Week 2891 D.A.R.E. Day 2884 Day of Concern About Young People and Gun Violence 2778, 3007 Day of Hope and Renewal 2843 Day of Prayer 2894 Defense Transportation Day 2905 Disability Employment Awareness Month 2987 Domestic Violence Awareness Month 2986 Drunk and Drugged Driving Prevention Month 2825 Education and Sharing Day, U.S.A 2893 Employer Support of the Guard and Reserve Week 3004 Family Caregivers Week 2813 Family Week 2820 Farm-City Week 2812 Farm Safety and Health Week 2981 Father’s Day 2925 Fire Prevention Week 2773, 2988 Flag Day 2923 Flag Week 2923 Forest Products Week 2793, 2999 Former Prisoner of War Recognition Day 2883 General Pulaski Memorial Day 2780, 2993 German-American Day 2774, 2991 Gold Star Mother’s Day 2983 Great American Smokeout Day 2821 Greek Independence Day: A National Day of Celebration of Greek and American Democracy 2867 Hispanic Heritage Month 2972 Historically Black Colleges and Universities Week 2979 Honoring the Filipino Veterans of World War II 2792 Human Rights Day 2838 Human Rights Week 2838 International Rural Women’s Day 2998 Irish-American Heritage Month 2862 Jewish Heritage Week 2905 Korean War Veterans Armistice Day 2963 Law Day, U.S.A. 2898 Leif Erikson Day 2777, 2992 Loyalty Day 2900 Maritime Day 2909 Martin Luther King, Jr., Federal Holiday 2842 Minority Enterprise Development Week 2978 Mother’s Day 2903 Older Americans Month 2899 Older Workers Employment Week 2866 Organ and Tissue Donor Awareness Week 2895 Pan American Day 2887 Pan American Week 2887 Parents’ Day 2964 Park Week 2897 Pay Inequity Awareness Day 2885 Peace Officers Memorial Day 2903 Pearl Harbor Remembrance Day 2837 Poison Prevention Week 2865 Police Week 2903 POW/MIA Recognition Day 2977 Prayer for Peace, Memorial Day 2910 Religious Freedom Day 2841 Safe Boating Week 2907 Save Your Vision Week 2864 School Lunch Week 2782, 2995 Security Act of 1947, fiftieth anniversary 2974 Service and Volunteer Week 2886B11 Small Business Week 2922 Thanksgiving Day 2814 Transportation Week 2905 United Nations Day 2795, 3001 Veterans Day 2810, 3008 Week of Food Recovery 2971 White Cane Safety Day 2785, 2994 Wildlife Refuge Week 2775 Wildlife Week 2896 Women’s Equality Day 2969 Women’s History Month 2863 World AIDS Day 2823 World Trade Week 2908 Wright Brothers Day 2840 Sudan, immigrant and nonimmigrant entry, suspension 2822 Accelerated schedule of duty elimination, implementation 2966 Agricultural products 2833 Broom imports 2826 Cotton, modifications 2798 Generalized System of Preferences, amendments 2786, 2844, 2888, 2911 Pharmaceuticals and chemical intermediates, implementation 2871 Romania, most-favored-nation treatment, extension 2812 World Trade Organization Ministerial Declaration on Trade in Information Technology Products and the Agreement on Distilled Spirits 2926 West Bank, Gaza Strip, and industrial zones, duty-free treatment 2815 Electric and magnetic fields research and public information dissemination program, extension 237 California, land conveyance 1166 Colorado, land exchange 1460 Department of the Interior and Related Agencies Appropriations Act, 1998 1543 Eagles Nest Wilderness, CO, expansion 1462 Hood Bay Land Exchange Act of 1997 1269 Michigan, revisionary interest, release 1268 National Geologic Mapping Reauthorization Act of 1997 1107 New Mexico, land conveyance 2523 Ohio, land conveyance 2268 Oregon, land conveyance 1116 Oroville-Tonasket Claim Settlement and Conveyance Act 16 Raggeds Wilderness, CO, boundary adjustment and land conveyance 1463 Warner Canyon Ski Hill Land Exchange 1167 White River National Forest, CO, boundary adjustment 1465 Library of Congress, national audiovisual conservation center, property acquisition 2667 Assassination Records Review Board, extension 240 See Immigration Special immigrant worker program, extension 1175 Balanced Budget Act of 1997 251 Central Intelligence Agency Retirement and Disability System, appropriations authorization 2248 District of Columbia Retirement Protection Act of 1997 715 Federal Employees’ Retirement System Open Enrollment Act of 1997 1318 Investment managers, registration 1457 Savings Are Vital to Everyone’s Retirement Act of 1997 2139 Taxpayer Relief Act of 1997 788B12 David B. Champagne Post Office Building, designation 1455 Alabama-Coosa-Tallapoosa River Basin Compact 2233 Apalachicola-Chattahoochee-Flint River Basin Compact 2219 See Copyrights District of Columbia Bond Financing Improvements Act of 1997 768 Advisers supervision, effective date, extension 15 Managers, employee benefits, registration 1457 New Mexico Statehood Enabling Act Amendments of 1997 1113 Taxpayer Relief Act of 1997 788 See Business and Industry See Postal Service See Intergovernmental Relations Stewart, Clarence P. 2522 See Education See Drugs and Drug Abuse Assisted Suicide Funding Restriction Act of 1997 23 Swigert, Jack 2707 Airport and Airway Trust Fund Tax Reinstatement Act of 1997 4 Balanced Budget Act of 1997 251 Taxpayer Browsing Protection Act 1104 Taxpayer Relief Act of 1997 788 Lawsuits against terrorist states, jurisdiction 22 Museum and Library Services Technical and Conforming Amendments of 1997 2548 Omnibus Consolidated Appropriations Act, 1997 3 Tejeda, Frank, III 191 Tejeda, Marissa 191 Tejeda, Sonya 191 See Communications See Communications Chickasaw Trail Economic Development Compact 2669 Lawsuits against terrorist states, technical correction 22 Frank M. Tejeda Post Office Building, designation 10 Thomas, Charles L. 1759 See Claims See Commerce and Trade Foreign accidents 2681 Pilot employment records 2650 Airport and Airway Trust Fund Tax Reinstatement Act of 1997 4 Metropolitan Washington Airport 2204 Amtrak Reform and Accountability Act of 1997 2570 Aviation Insurance Reauthorization Act of 1997 2640 Department of Transportation and Related Agencies Appropriations Act, 1998 1425 Metropolitan Area Transit Regulation Compact 2686 Surface Transportation Extension Act of 1997 2552 United States Code, codification 2204 International Dolphin Conservation Program Act 1122 United States Trade Representative, appointment waiver 11 See Education University of Alaska Fairbanks 1572 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1998 2094 Benefit decision, revision 2271 National System, interment or memorialization prohibition 2381 State-owned, grant conditions 2382 Veterans’ Cemetery Act of 1997 2202 Department of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998 1344 Leslie Townes Hope, honorary veteran status 1452, 1920 Philippine Army, Scouts, and Guerilla Veterans of World War II Naturalization Act of 1997 2459 State-owned veterans cemeteries, grant conditions 2382 Veterans’ Benefits Act of 1997 2277 Veterans’ Compensation Rate Amendments of 1997 2155 Veterans Reconciliation Act of 1997 663 See Law Enforcement and Crime Vincent, Jean-Marie 2520 Library of Congress, national audiovisual conservation center, property acquisition 2667B13 Martin V.B. Bostetter, Jr. United States Courthouse, designation 2532 Metropolitan Area Transit Regulation Compact 2686 Charitable Donation Antitrust Immunity Act of 1997 241 Volunteer Protection Act of 1997 218 Oroville-Tonasket Claim Settlement and Conveyance Act 16 Energy and Water Development Appropriations Act, 1998 1320 Panama Canal Commission Authorization Act for Fiscal Year 1998 2062 Panama Canal Transition Facilitation Act of 1997 2062 Trinity Lake, CA, designation 1141 Balanced Budget Act of 1997 251 See National Wildlife Refuge System Office of Women’s Business Ownership, establishment 46 Woodriffe, Edwin R. 1172 Grand Teton National Park study, grazing use and open space 1537 See Children, Youth, and Families 2 UNITED STATES
STATUTES AT LARGE

CONTAINING THE

LAWS AND CONCURRENT RESOLUTIONS

ENACTED DURING THE FIRST SESSION OF THE

ONE HUNDRED FIFTH CONGRESS

OF THE UNITED STATES OF AMERICA

1997

AND

PROCLAMATIONS

Volume 111

IN THREE PARTS

Part 2

PUBLIC LAWS 105–36 THROUGH 105–88

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON: 1998

PUBLISHED BY AUTHORITY OF LAW UNDER THE DIRECTION OF THE ARCHIVIST OF THE UNITED STATES BY THE OFFICE OF THE FEDERAL REGISTER, NATIONAL ARCHIVES AND RECORDS ADMINISTRATION

 “The United States Statutes at Large shall be legal evidence of laws, concurrent resolutions, . . . proclamations by the President and proposed or ratified amendments to the Constitution of the United States therein contained, in all the courts of the United States, the several States, and the Territories and insular possessions of the United States.” (1 USC 112).

For sale by the

Superintendent of Documents

U.S. Government Printing Office

Washington, DC 20402-9328

(3-part set; sold in sets only)

 CONTENTS Page List of Bills Enacted Into Public Lawv List of Public Lawsvii List of Bills Enacted Into Private Lawxv List of Private Lawsxvii List of Concurrent Resolutionsxix List of Proclamationsxxi Public Laws 105–1 Through 105–353 Popular Name IndexA1 Subject IndexB1 List of Bills Enacted Into Public Lawv List of Public Lawsvii List of Bills Enacted Into Private Lawxv List of Private Lawsxvii List of Concurrent Resolutionsxix List of Proclamationsxxi Public Laws 105–36 Through 105–881107 Popular Name IndexA1 Subject IndexB1 List of Bills Enacted Into Public Lawv List of Public Lawsvii List of Bills Enacted Into Private Lawxv List of Private Lawsxvii List of Concurrent Resolutionsxix List of Proclamationsxxi Public Laws 105–89 Through 105–1532115 Private Laws2695 Concurrent Resolutions2703 Proclamation2773 Popular Name IndexA1 Subject IndexB1 LIST OF BILLS ENACTED INTO PUBLIC LAW THE ONE HUNDRED FIFTH CONGRESS OF THE UNITED STATES FIRST SESSION, 1997 BILL PUBLIC LAW H.R. 5 105–17 H.R. 63 105–44 H.R. 79 105–79 H.R. 111 105–49 H.R. 173 105–27 H.R. 282 105–87 H.R. 363 105–23 H.R. 394 105–59 H.R. 408 105–42 H.R. 412 105–9 H.R. 499 105–4 H.R. 514 105–7 H.R. 649 105–28 H.R. 668 105–2 H.R. 672 105–80 H.R. 680 105–50 H.R. 681 105–88 H.R. 708 105–81 H.R. 709 105–36 H.R. 785 105–10 H.R. 867 105–89 H.R. 924 105–6 H.R. 956 105–20 H.R. 968 105–15 H.R. 1001 105–13 H.R. 1003 105–12 H.R. 1057 105–90 H.R. 1058 105–91 H.R. 1086 105–102 H.R. 1090 105–111 H.R. 1119 105–85 H.R. 1198 105–39 H.R. 1225 105–11 H.R. 1226 105–35 H.R. 1254 105–131 H.R. 1306 105–24 H.R. 1377 105–92 H.R. 1420 105–57 H.R. 1479 105–93 H.R. 1484 105–94 H.R. 1493 105–141 H.R. 1553 105–25 H.R. 1585 105–41 H.R. 1604 105–143 H.R. 1650 105–16 H.R. 1658 105–146 H R. 1747 105–95 H.R. 1787 105–96 H.R. 1840 105–112 H.R. 1866 105–43 H.R. 1871 105–18 H.R. 1901 105–30 H.R. 1902 105–26 H.R. 1944 105–40 H.R. 1948 105–60 H.R. 2013 105–70 H.R. 2014 105–34 H.R. 2015 105–33 H.R, 2016 105–45 H.R. 2018 105–31 H.R. 2107 105–83 H.R. 2129 105–97 H.R. 2158 105–65 H.R. 2159 105–118 H.R, 2160 105–86 H.R. 2169 105–66 H.R. 2203 105–62 H.R. 2209 105–55 H.R. 2248 105–51 H.R. 2264 105–78 H.R. 2265 105–147 H.R. 2266 105–56 H.R. 2267 105–119 H.R. 2366 105–113 H.R. 2367 105–98 H.R. 2378 105–61 H.R. 2443 105–52 H.R. 2464 105–73 H.R. 2476 105–148 H.R. 2564 105–99 H.R. 2607 105–100 H.R. 2626 105–142 H.R. 2796 105–152 H.R. 2813 105–103 H.R. 2977 105–153 H.R. 2979 105–144 H.R. 3025 105–149 H.R. 3034 105–150 H.J. Res. 25 105–1 H.J. Res. 32 105–21 H.J. Res. 36 105–3 H.J. Res. 75 105–67 H.J. Res. 90 105–32 H.J. Res. 91 105–104 H.J. Res. 92 105–105 H.J. Res. 94 105–46 H.J. Res. 95 105–145 H.J. Res. 96 105–151 H.J. Res. 97 105–64 H.J. Res. 101 105–68 H.J. Res. 103 105–120 H.J. Res. 104 105–69 H.J. Res. 105 105–71 H.J. Res. 106 105–84 S. 156 105–132 S. 305 105–14 S. 342 105–22 S. 410 105–8 S. 430 105–37 S. 476 105–133 S. 543 105–19 S. 587 105–74 S. 588 105–75 S. 589 105–76 S. 591 105–77 S. 669 105–106 S. 670 105–38 S. 714 105–114 S. 738 105–134 S. 813 105–101 S. 819 105–122 S. 830 105–115 S. 833 105–123 S. 858 105–107 S. 871 105–58 S. 910 105–47 S. 923 105–116 S. 931 105–82 S. 996 105–53 S. 1000 105–63 S. 1026 105–121 S. 1139 105–135 S. 1161 105–136 S. 1193 105–137 S. 1198 105–54 S. 1211 105–48 S. 1227 105–72 S. 1228 105–124 S. 1231 105–108 S. 1258 105–117 S. 1347 105–109 S. 1354 105–125 S. 1377 105–110 S. 1378 105–126 S. 1417 105–127 S. 1505 105–128 S. 1507 105–129 S. 1519 105–130 S. 1559 105–138 S. 1565 105–139 S.J. Res. 5 105–5 S.J. Res. 29 105–29 S.J. Res. 39 105–140 LIST OF PUBLIC LAWS CONTAINED IN THIS VOLUME PUBLIC LAW PAGE 105–1 3 105–2 4 105–3 9 105–4 10 105–5 11 105–6 12 105–7 14 105–8 15 105–9 16 105–10 21 105–11 22 105–12 23 105–13 31 105–14 32 105–15 34 105–16 35 105–17 37 105–18 158 105–19 218 105–20 224 105–21 235 105–22 236 105–23 237 105–24 238 105–25 240 105–26 241 105–27 244 105–28 245 105–29 246 105–30 248 105–31 249 105–32 250 105–33 251 105–34 788 105–35 1104 105–36 1107 105–37 1113 105–38 1115 105–39 1116 105–40 1117 105–41 1119 105–42 1122 105–43 1140 105–44 1141 105–45 1142 105–46 1153 105–47 1159 105–48 1165 105–49 1166 105–50 1167 105–51 1170 105–52 1172 105–53 1173 105–54 1175 105–55 1177 105–56 1203 105–57 1252 105–58 1261 105–59 1268 105–60 1269 105–61 1272 105–62 1320 105–63 1342 105–64 1343 105–65 1344 105–66 1425 105–67 1452 105–68 1453 105–69 1454 105–70 1455 105–71 1456 105–72 1457 105–73 1459 105–74 1460 105–75 1462 105–76 1463 105–77 1465 105–78 1467 105–79 1527 105–80 1529 105–81 1537 105–82 1540 105–83 1543 105–84 1628 105–85 1629 105–86 2079 105–87 2113 105–88 2114 105–89 2115 105–90 2137 105–91 2138 105–92 2139 105–93 2146 105–94 2147 105–95 2148 105–96 2150 105–97 2154 105–98 2155 105–99 2159 105–100 2160 105–101 2202 105–102 2204 105–103 2218 105–104 2219 105–105 2233 105–106 2247 105–107 2248 105–108 2264 105–109 2268 105–110 2270 105–111 2271 105–112 2273 105–113 2274 105–114 2277 105–115 2296 105–116 2381 105–117 2384 105–118 2386 105–119 2440 105–120 2527 105–121 2528 105–122 2532 105–123 2533 105–124 2534 105–125 2540 105–126 2542 105–127 2543 105–128 2548 105–129 2551 105–130 2552 105–131 2562 105–132 2563 105–133 2568 105–134 2570 105–135 2592 105–136 2639 105–137 2640 105–138 2642 105–139 2644 105–140 2646 105–141 2647 105–142 2650 105–143 2652 105–144 2667 105–145 2669 105–146 2672 105–147 2678 105–148 2681 105–149 2684 105–150 2685 105–151 2686 105–152 2688 105–153 2689 LIST OF BILLS ENACTED INTO PRIVATE LAW THE ONE HUNDRED FIFTH CONGRESS OF THE UNITED STATES FIRST SESSION, 1997 BILL PRIVATE LAW H.R. 584 105–2 H.R. 2731 105–3 H.R. 2732 105–4 S. 768 105–1 LIST OF PRIVATE LAWS CONTAINED IN THIS VOLUME PRIVATE LAW PAGE 105–1 2695 105–2 2697 105–3 2698 105–4 2699 LIST OF CONCURRENT RESOLUTIONS CONTAINED IN THIS VOLUME CONCURRENT RESOLUTION PAGE S. Con. Res. 1 2703 S. Con. Res. 2 2703 S. Con. Res. 3 2703 H. Con. Res. 9 2704 H. Con. Res. 21 2704 S. Con. Res. 4 2705 S. Con. Res. 14 2706 H. Con. Res. 11 2706 H. Con. Res. 61 2706 H. Con. Res. 25 2707 H. Con. Res. 66 2708 H. Con. Res. 49 2709 S. Con. Res. 26 2709 H. Con. Res. 67 2710 H. Con. Res. 84 2710 H. Con. Res. 108 2760 H. Con. Res. 123 2761 H. Con. Res. 98 2761 H. Con. Res. 136 2762 H. Con. Res. 138 2763 S. Con. Res. 43 2763 H. Con. Res. 134 2764 H. Con. Res. 169 2764 H. Con. Res. 8 2765 S. Con. Res. 56 2766 H. Con. Res. 167 2766 S. Con. Res. 61 2766 S. Con. Res. 62 2767 S. Con. Res. 63 2767 H. Con. Res. 194 2768 S. Con. Res. 68 2768 S. Con. Res. 70 2769 LIST OF PROCLAMATIONS CONTAINED IN THIS VOLUME PROCLAMATION PAGE 6930 2773 6931 2774 6932 2775 6933 2776 6934 2777 6935 2778 6936 2780 6937 2781 6938 2782 6939 2783 6940 2784 6941 2785 6942 2786 6943 2792 6944 2793 6945 2794 6946 2795 6947 2796 6948 2798 6949 2809 6950 2810 6951 2812 6952 2812 6953 2813 6954 2814 6955 2815 6956 2820 6957 2821 6958 2822 6959 2823 6960 2825 6961 2826 6962 2833 6963 2837 6964 2838 6965 2840 6966 2841 6967 2842 6968 2843 6969 2844 6970 2857 6971 2858 6972 2860 6973 2861 6974 2862 6975 2863 6976 2864 6977 2865 6978 2866 6979 2867 6980 2868 6981 2870 6982 2871 6983 2883 6984 2884 6985 2885 6986 2886 6987 2887 6988 2888 6989 2891 6990 2893 6991 2894 6992 2895 6993 2896 6994 2897 6995 2898 6996 2899 6997 2900 6998 2902 6999 2903 7000 2903 7001 2905 7002 2905 7003 2907 7004 2908 7005 2909 7006 2910 7007 2911 7008 2922 7009 2923 7010 2925 7011 2926 7012 2961 7013 2963 7014 2963 7015 2964 7016 2966 7017 2969 7018 2970 7019 2971 7020 2972 7021 2974 7022 2976 7023 2977 7024 2978 7025 2979 7026 2981 7027 2982 7028 2983 7029 2984 7030 2986 7031 2989 7032 2988 7033 2989 7034 2991 7035 2992 7036 2993 7037 2994 7038 2995 7039 2996 7040 2997 7041 2998 7042 2999 7043 3000 7044 3001 7045 3003 7046 3004 7047 3005 7048 3006 7049 3007 7050 3008

PUBLIC LAWS

(CONTINUED)

 Public Law 105–36: To reauthorize and amend the National Geologic Mapping Act of 1992, and for other purposes. Public Law36 Public Law 105–36 111 Stat. 1107 1997-08-05 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1107 Public Law105–36 105th Congress
An Act To reauthorize and amend the National Geologic Mapping Act of 1992, and for other purposes.

Aug. 5, 1997

[H.R. 709]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

National Geologic Mapping Reauthorization Act of 1997.

43 USC 31a note.
SECTION 1. SHORT TITLE. This Act may be cited as the “National Geologic Mapping Reauthorization Act of 1997”.
SEC. 2. FINDINGS.

43 USC 31a note.

 Congress finds that— (1) in enacting the National Geologic Mapping Act of 1992 (43 U.S.C. 31a et seq.), Congress found, among other things, that— (A) during the 2 decades preceding enactment of that Act, the production of geologic maps had been drastically curtailed; (B) geologic maps are the primary data base for virtually all applied and basic earth-science investigations; (C) Federal agencies, State and local governments, private industry, and the general public depend on the information provided by geologic maps to determine the extent of potential environmental damage before embarking on projects that could lead to preventable, costly environmental problems or litigation; (D) the lack of proper geologic maps has led to the poor design of such structures as dams and waste-disposal facilities; (E) geologic maps have proven indispensable in the search for needed fossil fuel and mineral resources; and (F) a comprehensive nationwide program of geologic mapping is required in order to systematically build the Nation’s geologic-map data base at a pace that responds to increasing demand; (2) the geologic mapping program called for by that Act has not been fully implemented; and (3) it is time for this important program to be fully implemented.
SEC. 3. REAUTHORIZATION AND AMENDMENT. (a) Definitions.—Section 3 of the National Geologic Mapping Act of 1992 (43 U.S.C. 31b) is amended— (1) by striking “As used in this Act:” and inserting “In this Act:”;111 STAT. 1108 (2) by redesignating paragraphs (2), (3), (4), and (5) as paragraphs (3), (4), (5), and (7), respectively; (3) by inserting after paragraph (1) the following: “(2) Association.—The term ‘Association’ means the Association of American State Geologists.”; (4) by inserting after paragraph (5) (as redesignated by paragraph (2) of this subsection) the following new paragraph: “(6) State.—The term ‘State’ includes the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, American Samoa, Guam, and the Virgin Islands.”; and (5) in each paragraph that does not have a heading, by inserting a heading, in the same style as the heading in paragraph (2), as added by paragraph (3), the text of which is comprised of the term defined in the paragraph. (b) Geologic Mapping Program.—Section 4 of the National Geologic Mapping Act of 1992 (43 U.S.C. 31c) is amended— (1) by striking subsection (a) and inserting the following: “(a) Establishment.— “(1) In general.—There is established a national cooperative geologic mapping program between the United States Geological Survey and the State geological surveys, acting through the Association. “(2) Design, development, and administration.—The cooperative geologic mapping program shall be— “(A) designed and administered to achieve the objectives set forth in subsection (c); “(B) developed in consultation with the advisory committee; and “(C) administered through the Survey.”; (2) in subsection (b)— (A) in the subsection heading by striking “USGS” and inserting “the Survey”; (B) in paragraph (1)— (i) by single-indenting the paragraph, double-indenting the subparagraphs, and triple-indenting the clauses; (ii) by inserting “Lead agency.—” before “The Survey”; (iii) in subparagraph (A)— (I) by striking “Committee on Natural Resources” and inserting “Committee on Resources”; and (II) by striking “date of enactment of this Act” and inserting “date of enactment of the National Geologic Mapping Reauthorization Act of 1997”; (iv) in subparagraph (B)— (I) by striking “State geological surveys” and inserting “Association”; and (II) by striking “date of enactment of this Act” and inserting “date of enactment of the National Geologic Mapping Reauthorization Act of 1997”; and (v) in subparagraph (C)— (I) by striking “date of enactment of this Act” and inserting “date of enactment of the National Geologic Mapping Reauthorization Act of 1997”;111 STAT. 1109 (II) by striking “Committee on Natural Resources” and inserting “Committee on Resources”; (III) in clauses (i) and (ii) by inserting “and the Association” after “the Survey”; (IV) by adding “and” at the end of clause (ii); and (V) by striking “; and” at the end of clause (iii) and all that follows through the end of the subparagraph and inserting a period; (C) in paragraph (2)— (i) by inserting “Responsibilities of the SECRETARY.—” before “In addition to”; and (ii) in subparagraph (A) by striking “State geological surveys” and inserting “Association”; and (D) by single-indenting the paragraph and double-indenting the subparagraphs; (3) in subsection (c)— (A) in paragraph (2) by striking “interpretive” and inserting “interpretative”; and (B) in paragraph (4) by striking “awareness for” and inserting “awareness of”; and (4) in subsection (d)— (A) in paragraph (1) by inserting “Federal component.—” before “A Federal”; (B) in paragraph (2)— (i) by inserting “SUPPORT COMPONENT.—” before “A geologic”; and (ii) by striking subparagraph (D) and inserting the following: “(D) geochronologic and isotopic investigations that— “(i) provide radiometric age dates for geologic-map units; and “(ii) fingerprint the geothermometry, geobarometry, and alteration history of geologic-map units, which investigations shall be contributed to a national geochronologic data base;”; (C) in paragraph (3) by inserting “State component.—” before “A State”; and (D) by striking paragraph (4) and inserting the following: “(4) Education component.—A geologic mapping education component— “(A) the objectives of which shall be— “(i) to develop the academic programs that teach earth-science students the fundamental principles of geologic mapping and field analysis; and “(ii) to provide for broad education in geologic mapping and field analysis through support of field studies; “(B) investigations under which shall be integrated with the other mapping components of the geologic mapping program and shall respond to priorities identified for those components; and “(C) Federal funding for which shall be matched by non-Federal sources on a 1-to-1 basis.”.111 STAT. 1110 (c) Advisory Committee.—Section 5 of the National Geologic Mapping Act of 1992 (43 U.S.C. 3Id) is amended— (1) by striking subsection (a) and inserting the following: “(a) Establishment.— “(1) In general.—There shall be established a 10-member geologic mapping advisory committee to advise the Director on planning and implementation of the geologic mapping program. “(2) Members ex officio.—Federal agency members shall include the Administrator of the Environmental Protection Agency or a designee, the Secretary of Energy or a designee, the Secretary of Agriculture or a designee, and the Assistant to the President for Science and Technology or a designee. “(3) Appointed members.—Not later than 90 days after the date of enactment of the National Geologic Mapping Reauthorization Act of 1997, in consultation with the Association, the Secretary shall appoint to the advisory committee two representatives from the Survey (including the Chief Geologist, as Chairman), two representatives from the State geological surveys, one representative from academia, and one representative from the private sector.”; and (2) in subsection (b)(3) by striking “and State” and inserting “, State, and university”. (d) Geologic Mapping Program Implementation Plan.—Section 6 of the National Geologic Mapping Act of 1992 (43 U.S.C. 31e) is amended— (1) in paragraph (1) by inserting “cooperative” after “national”; (2) by striking paragraph (3)(C) and inserting the following: “(C) for the State geologic mapping component, a priority-setting mechanism that responds to— “(i) specific intrastate needs for geologic-map information; and “(ii) interstate needs shared by adjacent entities that have common requirements; and”; (3) by striking paragraphs (4) and (5) and inserting the following: “(4) a mechanism for adopting scientific and technical mapping standards for preparing and publishing generalpurpose and special-purpose geologic maps to— “(A) ensure uniformity of cartographic and scientific conventions; and “(B) provide a basis for judgment as to the comparability and quality of map products; and”; and (4) by redesignating paragraph (6) as paragraph (5). (e) National Geologic-Map Data Base.—Section 7 of the National Geologic Mapping Act of 1992 (43 U.S.C. 3 If) is amended by striking subsection (b) and inserting the following: “(b) Standardization.— “(1) In general.—Geologic maps contributed to the national archives shall have format, symbols, and technical attributes that adhere to standards so that archival information can be accessed, exchanged, and compared efficiently and accurately, as required by Executive Order 12906 (59 Fed. Reg. 17,671 (1994)), which established the National Spatial Data Infrastructure.111 STAT. 1111 “(2) Development of standards.—Entities that contribute geologic maps to the national archives shall develop the standards described in paragraph (1) in cooperation with the Federal Geographic Data Committee, which is charged with standards development and other data coordination activities as described in Office of Management and Budget revised Circular A–16.”. (f) Annual Report.—Section 8 of the National Geologic Mapping Act of 1992 (43 U.S.C. 31g) is amended in the first sentence— (1) by striking “Committee on Natural Resources” and inserting “Committee on Resources”; and (2) by striking “program, and describing and evaluating progress” and inserting “program and describing and evaluating the progress”. (g) Authorization of Appropriations.—Section 9 of the National Geologic Mapping Act of 1992 (43 U.S.C. 31h) is amended to read as follows:
“SEC. 9. AUTHORIZATION OF APPROPRIATIONS. “(a) In General.—There are authorized to be appropriated to carry out the national cooperative geologic mapping program under this Act— “(1) $26,000,000 for fiscal year 1998; “(2) $28,000,000 for fiscal year 1999; and “(3) $30,000,000 for fiscal year 2000. “(b) Allocation of Appropriated Funds.— “(1) In general.—Of the amount of funds that are appropriated under subsection (a) for any fiscal year up to the amount that is equal to the amount appropriated to carry out the national cooperative geologic mapping program for fiscal year 1996— “(A) not less than 20 percent shall be allocated to State mapping activities; and “(B) not less than 2 percent shall be allocated to educational mapping activities. “(2) Increased appropriations.—Of the amount of funds that are appropriated under subsection (a) for any fiscal year up to the amount that exceeds the amount appropriated to carry out the national cooperative geologic mapping program for fiscal year 1996— “(A) for fiscal year 1998— “(i) 75 percent shall be allocated for Federal mapping and support mapping activities; “(ii) 23 percent shall be allocated for State mapping activities; and “(iii) 2 percent shall be allocated for educational mapping activities; “(B) for fiscal year 1999— “(i) 74 percent shall be allocated for Federal mapping and support mapping activities; “(ii) 24 percent shall be allocated for State mapping activities; and “(iii) 2 percent shall be allocated for educational mapping activities; and “(C) for fiscal year 2000— “(i) 73 percent shall be allocated for Federal mapping and support mapping activities;111 STAT. 1112 “(ii) 25 percent shall be allocated for State mapping activities; and “(iii) 2 percent shall be allocated for educational mapping activities.”.
Approved August 5, 1997.
LEGISLATIVE HISTORY—H.R. 709: HOUSE REPORTS: No. 105–17 (Comm. on Resources). CONGRESSIONAL RECORD, Vol. 143 (1997):

Mar. 11 considered and passed House.

July 23, considered and passed Senate.

 Public Law 105–37: To amend the Act of June 20, 1910, to protect the permanent trust funds of the State of New Mexico from erosion due to inflation and modify the basis on which distributions are made from those funds. Public Law37 Public Law 105–37 111 Stat. 1113 1997-08-07 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1113 Public Law105–37 105th Congress
An Act To amend the Act of June 20, 1910, to protect the permanent trust funds of the State of New Mexico from erosion due to inflation and modify the basis on which distributions are made from those funds.

Aug. 7, 1997

[S. 430]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

New Mexico Statehood and Enabling Act Amendments of 1997.
SECTION 1. PERMANENT TRUST FUNDS OF THE STATE OF NEW MEXICO. (a) Short Title.—This Act may be cited as the “New Mexico Statehood and Enabling Act Amendments of 1997”. (b) Investment of and Distributions From Permanent Trust Funds.—The Act of June 20, 1910 (36 Stat. 557, chapter 310), is amended— (1) in the proviso in the second paragraph of section 7, by striking “the income therefrom only to be used” and inserting “distributions from which shall be made in accordance with the first paragraph of section 10 and shall be used”; (2) in section 9, by striking “the interest of which only shall be expended” and inserting “distributions from which shall be made in accordance with the first paragraph of section 10 and shall be expended”; and (3) in the first paragraph of section 10, by adding at the end the following: “The trust funds, including all interest, dividends, other income, and appreciation in the market value of assets of the funds shall he prudently invested on a total rate of return basis. Distributions from the trust funds shall be made as provided in Article 12, Section 7 of the Constitution of the State of New Mexico.”. (c) Consent of Congress.—Congress consents to the amendments to the Constitution of the State of New Mexico proposed by Senate Joint Resolution 2 of the 42nd Legislature of the State of New Mexico, Second Session, 1996, entitled “A Joint Resolution proposing amendments to Article 8, Section 10 and Article 12, 111 STAT. 1114Sections 2, 4 and 7 of the Constitution of New Mexico to protect the State’s permanent funds against inflation by limiting distributions to a percentage of each fund’s market value and by modifying certain investment restrictions to allow optimal diversification of investments”, approved by the voters of the State of New Mexico on November 5, 1996.
Approved August 7, 1997.
LEGISLATIVE HISTORY—S. 430: SENATE REPORTS: No. 105–18 (Comm. on Energy and Natural Resources). CONGRESSIONAL RECORD, Vol. 143 (1997):

May 21, considered and passed Senate.

July 28, considered and passed House.

 Public Law 105–38: To amend the Immigration and Nationality Technical Corrections Act of 1994 to eliminate the special transition rule for issuance of a certificate of citizenship for certain children born outside the United States. Public Law38 Public Law 105–38 111 Stat. 1115 1997-08-08 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1115 Public Law105–38 105th Congress
An Act To amend the Immigration and Nationality Technical Corrections Act of 1994 to eliminate the special transition rule for issuance of a certificate of citizenship for certain children born outside the United States.

Aug. 8, 1997

[S. 670]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. ELIMINATION OF CERTIFICATE OF CITIZENSHIP TRANSITION RULE APPLICABLE TO CERTAIN CHILDREN. (a) In General.—Section 102 of the Immigration and Nationality Technical Corrections Act of 1994 (Public Law 103–416; 108 Stat. 4307) (as amended by section 671(b) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (Public Law 104–208; 110 Stat. 3009–1856)) is amended by striking subsection

8 USC 1433 note.

 (e). (b) Effective Date.—The amendment made by subsection (a)

8 USC 1433 note.

 shall take effect as if included in the enactment of the Immigration and Nationality Technical Corrections Act of 1994.
Approved August 8, 1997.
LEGISLATIVE HISTORY—S. 670 (H.R. 1109): CONGRESSIONAL RECORD, Vol. 143 (1997):

May 14, considered and passed Senate.

July 28, considered and passed House.

 Public Law 105–39: To direct the Secretary of the Interior to convey certain land to the City of Grants Pass, Oregon. Public Law39 Public Law 105–39 111 Stat. 1116 1997-08-11 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1116 Public Law105–39 105th Congress
An Act To direct the Secretary of the Interior to convey certain land to the City of Grants Pass, Oregon.

Aug. 11, 1997

[H.R. 1198]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. CONVEYANCE OF BLM LAND TO GRANTS PASS, OREGON. (a) Conveyance Required.—The Secretary of the Interior shall promptly convey to the City of Grants Pass, Oregon (in this section referred to as the “City”), without monetary compensation, all right, title, and interest of the United States in and to the real property described in subsection (b). (b) Property Described.— (1) In general.—The real property referred to in subsection (a) is that parcel of land depicted on the map entitled “Merlin Landfill Map” and dated June 20, 1997, consisting of— (A) approximately 200 acres of Bureau of Land Management land on which the City has operated a landfill under lease; and (B) approximately 120 acres of Bureau of Land Management land that are adjacent to the land described in subparagraph (A). (2) Determination by secretary.—The Secretary of the Interior may determine more particularly the real property described in paragraph (1). (c) Consideration.—As consideration for the conveyance under subsection (a), the Secretary shall require the City to agree to indemnify the Government of the United States for all liability of the Government that arises from the property.
Approved August 11, 1997.
LEGISLATIVE HISTORY—H. R. 1198: HOUSE REPORTS: No. 105–166 (Comm. on Resources). CONGRESSIONAL RECORD, Vol. 143 (1997):

July 8, considered and passed House.

July 31, considered and passed Senate.

 Public Law 105–40: To provide for a land exchange involving the Warner Canyon Ski Area and other land in the State of Oregon. Public Law40 Public Law 105–40 111 Stat. 1117 1997-08-11 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1117 Public Law105–40 105th Congress
An Act To provide for a land exchange involving the Warner Canyon Ski Area and other land in the State of Oregon.

Aug. 11, 1997

[H.R. 1944]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Warner Canyon Ski Hill Land Exchange Act of 1997.
SECTION 1. SHORT TITLE. This Act may be cited as the “Warner Canyon Ski Hill Land Exchange Act of 1997”.
SEC. 2. LAND EXCHANGE INVOLVING WARNER CANYON SKI AREA AND OTHER LAND IN OREGON. (a) Authorization of Exchange.—If title acceptable to the Secretary for non-Federal land described in subsection (b) is conveyed to the United States, the Secretary of Agriculture shall convey to Lake County, Oregon, subject to valid existing rights of record, all right, title, and interest of the United States in and to a parcel of Federal land consisting of approximately 295 acres within the Warner Canyon Ski Area of the Freemont National Forest, as generally depicted on the map entitled “Warner Canyon Ski Hill Land Exchange”, dated June 1997. (b) Non-Federal Land.—The non-Federal land referred to in subsection (a) consists of— (1) approximately 320 acres within the Hart Mountain National Wildlife Refuge, as generally depicted on the map referred to in subsection (a); and (2) such other parcels of land owned by Lake County, Oregon, within the Refuge as are necessary to ensure that the values of the Federal land and non-Federal land to be exchanged under this section are approximately equal in value, as determined by appraisals. (c) Acceptable Title.—Title to the non-Federal land conveyed to the United States under subsection (a) shall be such title as is acceptable to the Secretary of the Interior, in conformance with title approval standards applicable to Federal land acquisitions. (d) Valid Existing Rights.—The conveyance shall be subject to such valid existing rights of record as may be acceptable to the Secretary of the Interior. (e) Applicability of Other Laws.—Except as otherwise provided in this section, the Secretary of the Interior shall process the land exchange authorized by this section in the manner provided in subpart 2200 of title 43, Code of Federal Regulations (as in effect on the date of enactment of this Act).111 STAT. 1118 (f) Map.—The map referred to in subsection (a) shall be on file and available for inspection in 1 or more local offices of the Department of the Interior and the Department of Agriculture. (g) Additional Terms and Conditions.—The Secretary of the Interior or the Secretary of Agriculture may require such additional terms and conditions in connection with the conveyances under this section as either Secretary considers appropriate to protect the interests of the United States.
Approved August 11, 1997.
LEGISLATIVE HISTORY—H.R. 1944: HOUSE REPORTS: No. 105–193 (Comm. on Resources). CONGRESSIONAL RECORD, Vol. 143 (1997):

July 22, considered and passed House.

July 31, considered and passed Senate.

 Public Law 105–41: To allow postal patrons to contribute to funding for breast cancer research through the voluntary purchase of certain specially issued United States postage stamps, and for other purposes. Public Law41 Public Law 105–41 111 Stat. 1119 1997-08-13 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1119 Public Law105–41 105th Congress
An Act To allow postal patrons to contribute to funding for breast cancer research through the voluntary purchase of certain specially issued United States postage stamps, and for other purposes.

Aug. 13, 1997

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Stamp Out Breast Cancer Act.

39 USC 101 note.
SECTION 1. SHORT TITLE. This Act may be cited as the “Stamp Out Breast Cancer Act”.
SEC. 2. SPECIAL POSTAGE STAMPS. In General.—Chapter 4 of title 39, United States Code, is amended by adding at the end the following:
“§ 414. Special postage stamps “(a) In order to afford the public a convenient way to contribute to funding for breast cancer research, the Postal Service shall establish a special rate of postage for first-class mail under this section. “(b) The rate of postage established under this section— “(1) shall be equal to the regular first-class rate of postage, plus a differential of not to exceed 25 percent; “(2) shall be set by the Governors in accordance with such procedures as the Governors shall by regulation prescribe (in lieu of the procedures under chapter 36); and “(3) shall be offered as an alternative to the regular first-class rate of postage. The use of the special rate of postage established under this section shall be voluntary on the part of postal patrons. “(c)(1) Of the amounts becoming available for breast cancer research pursuant to this section, the Postal Service shall pay— “(A) 70 percent to the National Institutes of Health; and “(B) the remainder to the Department of Defense. Payments under this paragraph to an agency shall be made under such arrangements as the Postal Service shall by mutual agreement with such agency establish in order to carry out the purposes of this section, except that, under those arrangements, payments to such agency shall be made at least twice a year. “(2) For purposes of this section, the term ‘amounts becoming available for breast cancer research pursuant to this section’ means— “(A) the total amounts received by the Postal Service that it would not have received but for the enactment of this section, reduced by 111 STAT. 1120 “(B) an amount sufficient to cover reasonable costs incurred by the Postal Service in carrying out this section, including those attributable to the printing, sale, and distribution of stamps under this section, as determined by the Postal Service under regulations that it shall prescribe. “(d) It is the sense of the Congress that nothing in this section should— “(1) directly or indirectly cause a net decrease in total funds received by the National Institutes of Health, the Department of Defense, or any other agency of the Government (or any component or program thereof) below the level that would otherwise have been received but for the enactment of this section; or “(2) affect regular first-class rates of postage or any other regular rates of postage. “(e)

Regulations.

 Special postage stamps under this section shall be made available to the public beginning on such date as the Postal Service shall by regulation prescribe, but in no event later than 12 months after the date of the enactment of this section. “(f)

Reports.

 The Postmaster General shall include in each report rendered under section 2402 with respect to any period during any portion of which this section is in effect information concerning the operation of this section, except that, at a minimum, each shall include— “(1) the total amount described in subsection (c)(2)(A) which was received by the Postal Service during the period covered by such report; and “(2) of the amount under paragraph (1), how much (in the aggregate and by category) was required for the purposes described in subsection (c)(2)(B). “(g)

Termination date.

 This section shall cease to be effective at the end of the 2-year period beginning on the date on which special postage stamps under this section are first made available to the public.”.
(b)

39 USC 404 note.

 Report by the Comptroller General of the United States.—No later than 3 months (but no earlier than 6 months) before the end of the 2-year period referred to in section 414(g) of title 39, United States Code (as amended by subsection (a)), the Comptroller General of the United States shall submit to the Congress a report on the operation of such section. Such report shall include— (1) an evaluation of the effectiveness and the appropriateness of the authority provided by such section as a means of fund-raising; and (2) a description of the monetary and other resources required of the Postal Service in carrying out such section.111 STAT. 1121 (c) Clerical Amendment.—The table of sections for chapter 4 of title 39, United States Code, is amended by adding at the end the following: “414.
Approved August 13, 1997.
LEGISLATIVE HISTORY—H.R. 1585: CONGRESSIONAL RECORD. Vol. 143 (1997):

July 22, considered and passed House.

July 24, considered and passed Senate.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):

Aug. 13, Presidential statement.

 Public Law 105–42: To amend the Marine Mammal Protection Act of 1972 to support the International Dolphin Conservation Program in the eastern tropical Pacific Ocean, and for other purposes. Public Law42 Public Law 105–42 111 Stat. 1122 1997-08-15 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1122 Public Law105–42 105th Congress
An Act To amend the Marine Mammal Protection Act of 1972 to support the International Dolphin Conservation Program in the eastern tropical Pacific Ocean, and for other purposes.

Aug. 15, 1997

[H.R. 408]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

International Dolphin Conservation Program Act.

Tuna.

Exports and imports.

16 USC 1361 note.
SECTION 1. SHORT TITLE; REFERENCES. (a) Short Title.—This Act may be cited as the “International Dolphin Conservation Program Act”. (b) References to Marine Mammal Protection Act.—Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Marine Mammal Protection Act of 1972 (16 U.S.C. 1361 et seq.).
SEC. 2.

16 USC 1361 note.

 PURPOSES AND FINDINGS. (a) Purposes.—The purposes of this Act are— (1) to give effect to the Declaration of Panama, signed October 4, 1995, by the Governments of Belize, Colombia, Costa Rica, Ecuador, France, Honduras, Mexico, Panama, Spain, the United States of America, Vanuatu, and Venezuela, including the establishment of the International Dolphin Conservation Program, relating to the protection of dolphins and other species, and the conservation and management of tuna in the eastern tropical Pacific Ocean; (2) to recognize that nations fishing for tuna in the eastern tropical Pacific Ocean have achieved significant reductions in dolphin mortality associated with that fishery; and (3) to eliminate the ban on imports of tuna from those nations that are in compliance with the International Dolphin Conservation Program. (b) Findings.—The Congress finds that— (1) the nations that fish for tuna in the eastern tropical Pacific Ocean have achieved significant reductions in dolphin mortality associated with the purse seine fishery from hundreds of thousands annually to fewer than 5,000 annually; (2) the provisions of the Marine Mammal Protection Act of 1972 that impose a ban on imports from nations that fish for tuna in the eastern tropical Pacific Ocean have served as an incentive to reduce dolphin mortalities; (3) tuna canners and processors of the United States have led the canning and processing industry in promoting a dolphin-safe tuna market; and111 STAT. 1123 (4) 12 signatory nations to the Declaration of Panama, including the United States, agreed under that Declaration to require that the total annual dolphin mortality in the purse seine fishery for yellowfin tuna in the eastern tropical Pacific Ocean not exceed 5,000 animals, with the objective of progressively reducing dolphin mortality to a level approaching zero through the setting of annual limits and with the goal of eliminating dolphin mortality.
SEC. 3. DEFINITIONS. Section 3 (16 U.S.C. 1362) is amended by adding at the end the following new paragraphs: “(28) The term ‘International Dolphin Conservation Program’ means the international program established by the agreement signed in LaJolla, California, in June, 1992, as formalized, modified, and enhanced in accordance with the Declaration of Panama. “(29) The term ‘Declaration of Panama’ means the declaration signed in Panama City, Republic of Panama, on October 4, 1995”.
SEC. 4. AMENDMENTS TO TITLE I. (a) Exceptions to Moratorium.—Section 101(a)(2) (16 U.S.C. 1371(a)(2)) is amended— (1) by inserting after the first sentence “Such authorizations may be granted under title III with respect to purse seine fishing for yellowfin tuna in the eastern tropical Pacific Ocean, subject to regulations prescribed under that title by the Secretary without regard to section 103.”; and (2) by striking the semicolon in the second sentence and all that follows through “practicable”. (b) Documentation Required.—Section 101(a)(2) (16 U.S.C. 1371(a)(2)) is further amended— (1) by striking subparagraph (B) and inserting the following: “(B) in the case of yellowfin tuna harvested with purse seine nets in the eastern tropical Pacific Ocean, and products therefrom, to be exported to the United States, shall require that the government of the exporting nation provide documentary evidence that— “(i)(I) the tuna or products therefrom were not banned from importation under this paragraph before the effective date of section 4 of the International Dolphin Conservation Program Act; or “(II) the tuna or products therefrom were harvested after the effective date of section 4 of the International Dolphin Conservation Program Act by vessels of a nation which participates in the International Dolphin Conservation Program, and such harvesting nation is either a member of the Inter-American Tropical Tuna Commission or has initiated (and within 6 months thereafter completed) all steps required of applicant nations, in accordance with article V, paragraph 3 of the Convention establishing the Inter-American Tropical Tuna Commission, to become a member of that organization; “(ii) such nation is meeting the obligations of the International Dolphin Conservation Program and the 111 STAT. 1124obligations of membership in the Inter-American Tropical Tuna Commission, including all financial obligations; and “(iii) the total dolphin mortality limits, and perstock per-year dolphin mortality limits permitted for that nation’s vessels under the International Dolphin Conservation Program do not exceed the limits determined for 1997, or for any year thereafter, consistent with the objective of progressively reducing dolphin mortality to a level approaching zero through the setting of annual limits and the goal of eliminating dolphin mortality, and requirements of the International Dolphin Conservation Program;”; (2) by redesignating subparagraphs (C), (D), and (E) as subparagraphs (D), (E), and (F), respectively; (3) by inserting after subparagraph (B) the following: “(C) shall not accept such documentary evidence if— “(i) the government of the harvesting nation does not provide directly or authorize the Inter-American Tropical Tuna Commission to release complete and accurate information to the Secretary in a timely manner— “(I) to allow determination of compliance with the International Dolphin Conservation Program; and “(II) for the purposes of tracking and verifying compliance with the minimum requirements established by the Secretary in regulations promulgated under subsection (f) of the Dolphin Protection Consumer Information Act (16 U.S.C. 1385(f)); or “(ii) after taking into consideration such information, findings of the Inter-American Tropical Tuna Commission, and any other relevant information, including information that a nation is consistently failing to take enforcement actions on violations which diminish the effectiveness of the International Dolphin Conservation Program, the Secretary, in consultation with the Secretary of State, finds that the harvesting nation is not in compliance with the International Dolphin Conservation Program ”; and (4) by striking “subparagraph (E)” in the matter after subparagraph (F), as redesignated by paragraph (2) of this subsection, and inserting “subparagraph (F)”. (c) Certain Incidental Takings.—Section 101 (16 U.S.C. 1371) is further amended by adding at the end the following new subsection: “(e) Act Not to Apply to Incidental Takings by United States Citizens Employed on Foreign Vessels Outside the United States EEZ.—The provisions of this Act shall not apply to a citizen of the United States who incidentally takes any marine mammal during fishing operations outside the United States exclusive economic zone (as denned in section 3 of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1802)) when employed on a foreign fishing vessel of a harvesting nation which is in compliance with the International Dolphin Conservation Program.”.111 STAT. 1125 (d) Permits.—Section 104(h) (16 U.S.C. 1374(h)) is amended to read as follows: “(h) General Permits.— “(1) Consistent with the regulations prescribed pursuant

Regulations.

 to section 103 of this title and to the requirements of section 101 of this title, the Secretary may issue an annual permit to a United States purse seine fishing vessel for the taking of such marine mammals, and shall issue regulations to cover the use of any such annual permits. “(2) Such annual permits for the incidental taking of marine mammals in the course of commercial purse seine fishing for yellowfin tuna in the eastern tropical Pacific Ocean shall be governed by section 306 of this Act, subject to the regulations issued pursuant to section 303 of this Act.”. (e) International Negotiations.—Section 108(a)(2) (16 U.S.C. 1378(a)(2)) is amended— (1) by striking “and” at the end of subparagraph (A); (2) by inserting after subparagraph (B) the following: “(C) negotiations to revise the Convention for the Establishment of an Inter-American Tropical Tuna Commission (1 U.S.T. 230; TIAS 2044) which will incorporate— “(i) the conservation and management provisions agreed to by the nations which have signed the Declaration of Panama and in the Straddling Fish Stocks and Highly Migratory Fish Stocks Agreement, as opened for signature on December 4, 1995; and “(ii) a revised schedule of annual contributions to the expenses of the Inter-American Tropical Tuna Commission that is equitable to participating nations; and “(D) discussions with those countries participating, or likely to participate, in the International Dolphin Conservation Program, for the purpose of identifying sources of funds needed for research and other measures promoting effective protection of dolphins, other marine species, and the marine ecosystem;”. (D) Research Grants.—Section 110(a) (16 U.S.C. 1380(a)) is amended— (1) by striking “(1)” in paragraph (1); and (2) by striking paragraph (2).
SEC. 5. AMENDMENTS TO DOLPHIN PROTECTION CONSUMER INFORMATION ACT. (a) Labeling Standard.—Subsection (d) of the Dolphin Protection Consumer Information Act (16 U.S.C. 1385(d)) is amended to read as follows: “(d) Labeling Standard.— “(1) It is a violation of section 5 of the Federal Trade Commission Act (15 U.S.C. 45) for any producer, importer, exporter, distributor, or seller of any tuna product that is exported from or offered for sale in the United States to include on the label of that product the term ‘dolphin safe’ or any other term or symbol that falsely claims or suggests that the tuna contained in the product were harvested using a method of fishing that is not harmful to dolphins if the product contains tuna harvested—111 STAT. 1126 “(A) on the high seas by a vessel engaged in driftnet fishing; “(B) outside the eastern tropical Pacific Ocean by a vessel using purse seine nets— “(i) in a fishery in which the Secretary has determined that a regular and significant association occurs between dolphins and tuna (similar to the association between dolphins and tuna in the eastern tropical Pacific Ocean), unless such product is accompanied by a written statement, executed by the captain of the vessel and an observer participating in a national or international program acceptable to the Secretary, certifying that no purse seine net was intentionally deployed on or used to encircle dolphins during the particular voyage on which the tuna were caught and no dolphins were killed or seriously injured in the sets in which the tuna were caught; or “(ii) in any other fishery (other than a fishery described in subparagraph (D)) unless the product is accompanied by a written statement executed by the captain of the vessel certifying that no purse seine net was intentionally deployed on or used to encircle dolphins during the particular voyage on which the tuna was harvested; “(C) in the eastern tropical Pacific Ocean by a vessel using a purse seine net unless the tuna meet the requirements for being considered dolphin safe under paragraph (2); or “(D) by a vessel in a fishery other than one described in subparagraph (A), (B), or (C) that is identified by the Secretary as having a regular and significant mortality or serious injury of dolphins, unless such product is accompanied by a written statement executed by the captain of the vessel and an observer participating in a national or international program acceptable to the Secretary that no dolphins were killed or seriously injured in the sets or other gear deployments in which the tuna were caught, provided that the Secretary determines that such an observer statement is necessary. “(2) For purposes of paragraph (1)(C), a tuna product that contains tuna harvested in the eastern tropical Pacific Ocean by a vessel using purse seine nets is dolphin safe if— “(A) the vessel is of a type and size that the Secretary has determined, consistent with the International Dolphin Conservation Program, is not capable of deploying its purse seine nets on or to encircle dolphins; or “(B)(i) the product is accompanied by a written statement executed by the captain providing the certification required under subsection (h); “(ii) the product is accompanied by a written statement executed by— “(I) the Secretary or the Secretary’s designee; “(II) a representative of the Inter-American Tropical Tuna Commission; or111 STAT. 1127 “(III) an authorized representative of a participating nation whose national program meets the requirements of the International Dolphin Conservation Program, which states that there was an observer approved by the International Dolphin Conservation Program on board the vessel during the entire trip and that such observer provided the certification required under subsection (h); and “(iii) the statements referred to in clauses (i) and (ii) are endorsed in writing by each exporter, importer, and processor of the product; and “(C) the written statements and endorsements referred to in subparagraph (B) comply with regulations promulgated by the Secretary which provide for the verification of tuna products as dolphin safe. “(3) The Secretary of Commerce shall develop an official mark that may be used to label tuna products as dolphin safe in accordance with this Act. “(B) A tuna product that bears the dolphin safe mark developed under subparagraph (A) shall not bear any other label or mark that refers to dolphins, porpoises, or marine mammals. “(C) It is a violation of section 5 of the Federal Trade Commission Act (15 U.S.C. 45) to label a tuna product with any label or mark that refers to dolphins, porpoises, or marine mammals other than the mark developed under subparagraph (A) unless— “(i) no dolphins were killed or seriously injured in the sets or other gear deployments in which the tuna were caught; “(ii) the label is supported by a tracking and verification program which is comparable in effectiveness to the program established under subsection (f); and “(iii) the label complies with all applicable labeling, marketing, and advertising laws and regulations of the Federal Trade Commission, including any guidelines for environmental labeling. “(D) If the Secretary determines that the use of a label

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 referred to in subparagraph (C) is substantially undermining the conservation goals of the International Dolphin Conservation Program, the Secretary shall report that determination to the United States Senate Committee on Commerce, Science, and Transportation and the United States House of Representatives Committees on Resources and on Commerce, along with recommendations to correct such problems. “(E) It is a violation of section 5 of the Federal Trade Commission Act (15 U.S.C. 45) willingly and knowingly to use a label referred to in subparagraph (C) in a campaign or effort to mislead or deceive consumers about the level of protection afforded dolphins under the International Dolphin Conservation Program.”. (b) Tracking Regulations.—Subsection (f) of the Dolphin Protection Consumer Information Act (16 U.S.C. 1385(f)) is amended to read as follows: “(f) Regulations.—The Secretary, in consultation with the Secretary of the Treasury, shall issue regulations to implement this Act, including regulations to establish a domestic tracking and 111 STAT. 1128verification program that provides for the effective tracking of tuna

Confidentiality.

labeled under subsection (d). In the development of these regulations, the Secretary shall establish appropriate procedures for ensuring the confidentiality of proprietary information the submission of which is voluntary or mandatory. The regulations shall address each of the following items: “(1) The use of weight calculation for purposes of tracking tuna caught, landed, processed, and exported. “(2) Additional measures to enhance current observer coverage, including the establishment of criteria for training, and for improving monitoring and reporting capabilities and procedures. “(3) The designation of well location, procedures for sealing holds, procedures for monitoring and certifying both above and below deck, or through equally effective methods, the tracking and verification of tuna labeled under subsection (d). “(4) The reporting, receipt, and database storage of radio and facsimile transmittals from fishing vessels containing information related to the tracking and verification of tuna, and the definition of set. “(5) The shore-based verification and tracking throughout the fishing, transshipment, and canning process by means of Inter-American Tropical Tuna Commission trip records or otherwise. “(6) The use of periodic audits and spot checks for caught, landed, and processed tuna products labeled in accordance with subsection (d). “(7) The provision of timely access to data required under this subsection by the Secretary from harvesting nations to undertake the actions required in paragraph (6) of this paragraph. The Secretary may make such adjustments as may be appropriate to the regulations promulgated under this subsection to implement an international tracking and verification program that meets or exceeds the minimum requirements established by the Secretary under this subsection.”. (c) Findings Concerning Impact on Depleted Stocks.—The Dolphin Protection Consumer Information Act (16 U.S.C. 1385) is amended by striking subsections (g), (h), and (i) and inserting the following: “(g) Secretarial Findings.—(1) Between March 1, 1999, and March 31, 1999, the Secretary shall, on the basis of the research conducted before March 1, 1999, under section 304(a) of the Marine Mammal Protection Act of 1972, information obtained under the International Dolphin Conservation Program, and any other relevant information, make an initial finding regarding whether the intentional deployment on or encirclement of dolphins with purse seine nets is having a significant adverse impact on any depleted

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dolphin stock in the eastern tropical Pacific Ocean. The initial finding shall be published immediately in the Federal Register and shall become effective upon a subsequent date determined by the Secretary. “(2) Between July 1, 2001, and December 31, 2002, the Secretary shall, on the basis of the completed study conducted under section 304(a) of the Marine Mammal Protection Act of 1972, information obtained under the International Dolphin Conservation Program, and any other relevant information, make a finding 111 STAT. 1129regarding whether the intentional deployment on or encirclement of dolphins with purse seine nets is having a significant adverse impact on any depleted dolphin stock in the eastern tropical Pacific Ocean. The finding shall be published immediately in the Federal Register

Federal Register, publication.

 and shall become effective upon a subsequent date determined by the Secretary. “(h) Certification by Captain and Observer.— “(1) Unless otherwise required by paragraph (2), the certification by the captain under subsection (d)(2)(B)(i) and the certification provided by the observer as specified in subsection (d)(2)(B)(ii) shall be that no dolphins were killed or seriously injured during the sets in which the tuna were caught. “(2) The certification by the captain under subsection (d)(2)(B)(i) and the certification provided by the observer as specified under subsection (d)(2)(B)(ii) shall be that no tuna were caught on the trip in which such tuna were harvested using a purse seine net intentionally deployed on or to encircle dolphins, and that no dolphins were killed or seriously injured during the sets in which the tuna were caught, if the tuna were caught on a trip commencing— “(A) before the effective date of the initial finding by the Secretary under subsection (g)(1); “(B) after the effective date of such initial finding and before the effective date of the finding of the Secretary under subsection (g)(2), where the initial finding is that the intentional deployment on or encirclement of dolphins is having a significant adverse impact on any depleted dolphin stock; or “(C) after the effective date of the finding under subsection (g)(2), where such finding is that the intentional deployment on or encirclement of dolphins is having a significant adverse impact on any such depleted stock.”.
SEC. 6. AMENDMENTS TO TITLE III. (a) Change of Title Heading.—The heading of title III is amended to read as follows: <num value="III">“TITLE III—</num><heading>INTERNATIONAL DOLPHIN CONSERVATION PROGRAM”.</heading> (b) Additional Findings.—Section 301 (16 U.S.C. 1411) is amended— (1) by striking paragraph (4) of subsection (a) and inserting the following: “(4) Nations harvesting yellowfin tuna in the eastern tropical Pacific Ocean have demonstrated their willingness to participate in appropriate multilateral agreements to reduce dolphin mortality progressively to a level approaching zero through the setting of annual limits, with the goal of eliminating dolphin mortality in that fishery. Recognition of the International Dolphin Conservation Program will assure that the existing trend of reduced dolphin mortality continues: that individual stocks of dolphins are adequately protected; and that the goal of eliminating all dolphin mortality continues to be a priority.”; and (2) by striking paragraphs (2) and (3) of subsection (b) and inserting the following:111 STAT. 1130 “(2) support the International Dolphin Conservation Program and efforts within the Program to reduce, with the goal of eliminating, the mortality referred to in paragraph (1); “(3) ensure that the market of the United States does not act as an incentive to the harvest of tuna caught with driftnets or caught by purse seine vessels in the eastern tropical Pacific Ocean not operating in compliance with the International Dolphin Conservation Program;”. (c) Title III (16 U.S.C. 1411 et seq.) is amended by striking sections 302 through 306 (16 U.S.C. 1412 through 1416) and inserting the following:
“SEC. 302.

16 USC 1412.

 INTERNATIONAL DOLPHIN CONSERVATION PROGRAM. “The Secretary of State, in consultation with the Secretary, shall seek to secure a binding international agreement to establish an International Dolphin Conservation Program that requires— “(1) that the total annual dolphin mortality in the purse seine fishery for yellowfin tuna in the eastern tropical Pacific Ocean shall not exceed 5,000 animals with a commitment and objective to progressively reduce dolphin mortality to a level approaching zero through the setting of annual limits; “(2) the establishment of a per-stock per-year dolphin mortality limit, to be in effect through calendar year 2000, at a level between 0.2 percent and 0.1 percent of the minimum population estimate, as calculated, revised, or approved by the Secretary; “(3) the establishment of a per-stock per-year dolphin mortality limit, beginning with the calendar year 2001, at a level less than or equal to 0.1 percent of the minimum population estimate as calculated, revised, or approved by the Secretary; “(4) that if a dolphin mortality limit is exceeded under— “(A) paragraph (1), all sets on dolphins shall cease for the applicable fishing year; and “(B) paragraph (2) or (3), all sets on the stocks covered under paragraph (2) or (3) and any mixed schools that contain any of those stocks shall cease for the applicable fishing year; “(5) a scientific review and assessment to be conducted in calendar year 1998 to— “(A) assess progress in meeting the objectives set for calendar year 2000 under paragraph (2); and “(B) as appropriate, consider recommendations for meeting these objectives; “(6) a scientific review and assessment to be conducted in calendar year 2000— “(A) to review the stocks covered under paragraph (3); and “(B) as appropriate to consider recommendations to further the objectives set under that paragraph; “(7) the establishment of a per vessel maximum annual dolphin mortality limit consistent with the established per-year mortality limits, as determined under paragraphs (1) through (3); and “(8) the provision of a system of incentives to vessel captains to continue to reduce dolphin mortality, with the goal of eliminating dolphin mortality.111 STAT. 1131
“SEC. 303. REGULATORY AUTHORITY OF THE SECRETARY.

16 USC 1413.

 “(a) Regulations.— “(1) The Secretary shall issue regulations, and revise those regulations as may be appropriate, to implement the International Dolphin Conservation Program. “(2)(A) The Secretary shall issue regulations to authorize and govern the taking of marine mammals in the eastern tropical Pacific Ocean, including any species of marine mammal designated as depleted under this Act but not listed as endangered or threatened under the Endangered Species Act (16 U.S.C. 1531 et seq.), by vessels of the United States participating in the International Dolphin Conservation Program. “(B) Regulations issued under this section shall include provisions— “(i) requiring observers on each vessel; “(ii) requiring use of the backdown procedure or other procedures equally or more effective in avoiding mortality of, or serious injury to, marine mammals in fishing operations; “(iii) prohibiting intentional sets on stocks and schools in accordance with the International Dolphin Conservation Program; “(iv) requiring the use of special equipment, including dolphin safety panels in nets, monitoring devices as identified by the International Dolphin Conservation Program to detect unsafe fishing conditions that may cause high incidental dolphin mortality before nets are deployed by a tuna vessel, operable rafts, speedboats with towing bridles, floodlights in operable condition, and diving masks and snorkels; “(v) ensuring that the backdown procedure during sets of purse seine net on marine mammals is completed and rolling of the net to sack up has begun no later than 30 minutes before sundown; “(vi) banning the use of explosive devices in all purse seine operations; “(vii) establishing per vessel maximum annual dolphin mortality limits, total dolphin mortality limits and per-stock per-year mortality limits in accordance with the International Dolphin Conservation Program; “(viii) preventing the making of intentional sets on dolphins after reaching either the vessel maximum annual dolphin mortality limits, total dolphin mortality limits, or per-stock per-year mortality limits; “(ix) preventing the fishing on dolphins by a vessel without an assigned vessel dolphin mortality limit; “(x) allowing for the authorization and conduct of experimented fishing operations, under such terms and conditions as the Secretary may prescribe, for the purpose of testing proposed improvements in fishing techniques and equipment that may reduce or eliminate dolphin mortality or serious injury do not require the encirclement of dolphins in the course of commercial yellowfin tuna fishing; “(xi) authorizing fishing within the area covered by the International Dolphin Conservation Program by vessels of the United States without the use of special equipment 111 STAT. 1132or nets if the vessel takes an observer and does not intentionally deploy nets on, or encircle, dolphins, under such terms and conditions as the Secretary may prescribe; and “(xii) containing such other restrictions and requirements as the Secretary determines are necessary to implement the International Dolphin Conservation Program with respect to vessels of the United States. “(C) Adjustments to requirements.—The Secretary may make such adjustments as may be appropriate to requirements of subparagraph (B) that pertain to fishing gear, vessel equipment, and fishing practices to the extent the adjustments are consistent with the International Dolphin Conservation Program. “(b) Consultation.—In developing any regulation under this section, the Secretary shall consult with the Secretary of State, the Marine Mammal Commission, and the United States Commissioners to the Inter-American Tropical Tuna Commission appointed under section 3 of the Tuna Conventions Act of 1950 (16 U.S.C. 952). “(c) Emergency Regulations.— “(1) If the Secretary determines, on the basis of the best scientific information available (including research conducted under section 304 and information obtained under the International Dolphin Conservation Program) that the incidental mortality and serious injury of marine mammals authorized under this title is having, or is likely to have, a significant adverse impact on a marine mammal stock or species, the Secretary shall— “(A) notify the Inter-American Tropical Tuna Commission of his or her determination, along with recommendations to the Commission as to actions necessary to reduce incidental mortality and serious injury and mitigate such adverse impact; and “(B) prescribe emergency regulations to reduce incidental mortality and serious injury and mitigate such adverse impact. “(2) Before taking action under subparagraph (A) or (B) of paragraph (1), the Secretary shall consult with the Secretary of State, the Marine Mammal Commission, and the United States Commissioners to the Inter-American Tropical Tuna Commission. “(3) Emergency regulations prescribed under this subsection— “(A)

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 shall be published in the Federal Register, together with an explanation thereof; “(B) shall remain in effect for the duration of the applicable fishing year; and “(C) may be terminated by the Secretary at an earlier date by publication in the Federal Register of a notice of termination if the Secretary determines that the reasons for the emergency action no longer exist. “(4) If the Secretary finds that the incidental mortality and serious injury of marine mammals in the yellowfin tuna fishery in the eastern tropical Pacific Ocean is continuing to have a significant adverse impact on a stock or species, the Secretary may extend the emergency regulations for such additional periods as may be necessary.111 STAT. 1133 “(5) Within 120 days after the Secretary notifies the United

Notification.

 States Commissioners to the Inter-American Tropical Tuna Commission of the Secretary’s determination under paragraph (1)(A), the United States Commissioners shall call for a special meeting of the Commission to address the actions necessary to reduce incidental mortality and serious injury and mitigate the adverse impact which resulted in the determination. The

Reports.

 Commissioners shall report the results of the special meeting in writing to the Secretary and to the Secretary of State. In their report, the Commissioners shall— “(A) include a description of the actions taken by the harvesting nations or under the International Dolphin Conservation Program to reduce the incidental mortality and serious injury and measures to mitigate the adverse impact on the marine mammal species or stock; “(B) indicate whether, in their judgment, the actions taken address the problem adequately; and “(C) if they indicate that the actions taken do not address the problem adequately, include recommendations of such additional action to be taken as may be necessary.
“SEC. 304. RESEARCH.

16 USC 1414a.

 “(a) Required Research.— “(1) In general.—The Secretary shall, in consultation with the Marine Mammal Commission and the Inter-American Tropical Tuna Commission, conduct a study of the effect of intentional encirclement (including chase) on dolphins and dolphin stocks incidentally taken in the course of purse seine fishing for yellowfin tuna in the eastern tropical Pacific Ocean. The study, which shall commence on October 1, 1997, shall consist of abundance surveys as described in paragraph (2) and stress studies as described in paragraph (3), and shall address the question of whether such encirclement is having a significant adverse impact on any depleted dolphin stock in the eastern tropical Pacific Ocean. “(2) Population abundance surveys.—The abundance surveys under this subsection shall survey the abundance of such depleted stocks and shall be conducted during each of the calendar years 1998, 1999, and 2000. “(3) Stress studies.—The stress studies under this subsection shall include— “(A) a review of relevant stress-related research and a 3-year series of necropsy samples from dolphins obtained by commercial vessels; “(B) a 1-year review of relevant historical demographic and biological data related to dolphins and dolphin stocks referred to in paragraph (1); and “(C) an experiment involving the repeated chasing and capturing of dolphins by means of intentional encirclement. “(4) Report.—No later than 90 days after publishing the finding under subsection (g)(2) of the Dolphin Protection Consumer Information Act, the Secretary shall complete and submit a report containing the results of the research described in this subsection to the United States Senate Committee on Commerce, Science, and Transportation and the United States House of Representatives Committees on Resources and on 111 STAT. 1134Commerce, and to the Inter-American Tropical Tuna Commission. “(b) Other Research.— “(1) In general.—In addition to conducting the research described in subsection (a), the Secretary shall, in consultation with the Marine Mammal Commission and in cooperation with the nations participating in the International Dolphin Conservation Program and the Inter-American Tropical Tuna Commission, undertake or support appropriate scientific research to further the goals of the International Dolphin Conservation Program. “(2) Specific areas of research.—Research carried out under paragraph (1) may include— “(A) projects to devise cost-effective fishing methods and gear so as to reduce, with the goal of eliminating, the incidental mortality and serious injury of marine mammals in connection with commercial purse seine fishing in the eastern tropical Pacific Ocean; “(B) projects to develop cost-effective methods of fishing for mature yellowfin tuna without setting nets on dolphins or other marine mammals; “(C) projects to carry out stock assessments for those marine mammal species and marine mammal stocks taken in the purse seine fishery for yellowfin tuna in the eastern tropical Pacific Ocean, including species or stocks not within waters under the jurisdiction of the United States; and “(D) projects to determine the extent to which the incidental take of nontarget species, including juvenile tuna, occurs in the course of purse seine fishing for yellowfin tuna in the eastern tropical Pacific Ocean, the geographic location of the incidental take, and the impact of that incidental take on tuna stocks and nontarget species. “(c) Authorization of Appropriations.— “(1) There are authorized to be appropriated to the Secretary the following amounts, to be used by the Secretary to carry out the research described in subsection (a): “(A) $4,000,000 for fiscal year 1998. “(B) $3,000,000 for fiscal year 1999. “(C) $4,000,000 for fiscal year 2000. “(D) $1,000,000 for fiscal year 2001. “(2) In addition to the amount authorized to be appropriated under paragraph (1), there are authorized to be appropriated to the Secretary for carrying out this section $3,000,000 for each of the fiscal years 1998, 1999, 2000, and 2001.
“SEC. 305.

16 USC 1415.

 REPORTS BY THE SECRETARY. “Notwithstanding section 103(f), the Secretary shall submit annual reports to the Congress which include— “(1) results of research conducted pursuant to section 304; “(2) a description of the status and trends of stocks of tuna; “(3) a description of the efforts to assess, avoid, reduce, and minimize the bycatch of juvenile yellowfin tuna and bycatch of nontarget species;111 STAT. 1135 “(4) a description of the activities of the International Dolphin Conservation Program and of the efforts of the United States in support of the Program’s goals and objectives, including the protection of dolphin stocks in the eastern tropical Pacific Ocean, and an assessment of the effectiveness of the Program; “(5) actions taken by the Secretary under section 101(a)(2)(B) and section 101(d); “(6) copies of any relevant resolutions and decisions of the Inter-American Tropical Tuna Commission, and any regulations promulgated by the Secretary under this title; and “(7) any other information deemed relevant by the Secretary.
“SEC. 306. PERMITS.

16 USC 1416.

 “(a) In General.— “(1) Consistent with the regulations issued pursuant to section 303, the Secretary shall issue a permit to a vessel of the United States authorizing participation in the International Dolphin Conservation Program and may require a permit for the person actually in charge of and controlling the fishing operation of the vessel. The Secretary shall prescribe such procedures as are necessary to carry out this subsection, including requiring the submission of— “(A) the name and official number or other identification of each fishing vessel for which a permit is sought, together with the name and address of the owner thereof; and “(B) the tonnage, hold capacity, speed, processing equipment, and type and quantity of gear, including an inventory of special equipment required under section 303, with respect to each vessel. “(2) The Secretary is authorized to charge a fee for granting an authorization and issuing a permit under this section. The level of fees charged under this paragraph may not exceed the administrative cost incurred in granting an authorization and issuing a permit. Fees collected under this paragraph shall be available to the Under Secretary of Commerce for Oceans and Atmosphere for expenses incurred in granting authorizations and issuing permits under this section. “(3) After the effective date of the International Dolphin Conservation Program Act, no vessel of the United States shall operate in the yellowfin tuna fishery in the eastern tropical Pacific Ocean without a valid permit issued under this section. “(b) Permit Sanctions.— “(1) In any case in which— “(A) a vessel for which a permit has been issued under this section has been used in the commission of an act prohibited under section 307; “(B) the owner or operator of any such vessel or any other person who has applied for or been issued a permit under this section has acted in violation of section 307; or “(C) any civil penalty or criminal fine imposed on a vessel, owner or operator of a vessel, or other person who has applied for or been issued a permit under this section has not been paid or is overdue, 111 STAT. 1136the Secretary may— “(i) revoke any permit with respect to such vessel, with or without prejudice to the issuance of subsequent permits; “(ii) suspend such permit for a period of time considered by the Secretary to be appropriate; “(iii) deny such permit; or “(iv) impose additional conditions or restrictions on any permit issued to, or applied for by, any such vessel or person under this section. “(2) In imposing a sanction under this subsection, the Secretary shall take into account— “(A) the nature, circumstances, extent, and gravity of the prohibited acts for which the sanction is imposed; and “(B) with respect to the violator, the degree of culpability, any history of prior offenses, and other such matters as justice requires. “(3) Transfer of ownership of a vessel, by sale or otherwise, shall not extinguish any permit sanction that is in effect or is pending at the time of transfer of ownership. Before executing the transfer of ownership of a vessel, by sale or otherwise, the owner shall disclose in writing to the prospective transferee the existence of any permit sanction that will be in effect or pending with respect to the vessel at the time of transfer. “(4) In the case of any permit that is suspended for the failure to pay a civil penalty or criminal fine, the Secretary shall reinstate the permit upon payment of the penalty or fine and interest thereon at the prevailing rate. “(5) No sanctions shall be imposed under this section unless there has been a prior opportunity for a hearing on the facts underlying the violation for which the sanction is imposed, either in conjunction with a civil penalty proceeding under this title or otherwise.”.
(d) Section 307 (16 U.S.C. 1417) is amended— (1) by striking paragraphs (1), (2), and (3) of subsection (a) and inserting the following: “(1) for any person to sell, purchase, offer for sale, transport, or ship, in the United States, any tuna or tuna product unless the tuna or tuna product is either dolphin safe or has been harvested in compliance with the International Dolphin Conservation Program by a country that is a member of the Inter-American Tropical Tuna Commission or has initiated and within 6 months thereafter completed all steps required of applicant nations in accordance with Article V, paragraph 3 of the Convention establishing the Inter-American Tropical Tuna Commission, to become a member of that organization; “(2) except as provided for in subsection 101(a), for any person or vessel subject to the jurisdiction of the United States intentionally to set a purse seine net on or to encircle any marine mammal in the course of tuna fishing operations in the eastern tropical Pacific Ocean except in accordance with this title and regulations issued pursuant to this title; and “(3) for any person to import any yellowfin tuna or yellowfin tuna product or any other fish or fish product in violation of a ban on importation imposed under section 101(a)(2);”; (2) by inserting “(a)(5) or” before “(a)(6)” in subsection (b)(2); and111 STAT. 1137 (3) by striking subsection (d). (e) Section 308 (16 U.S.C. 1418) is repealed. (f) Clerical Amendments.—The table of contents in the first section of the Marine Mammal Protection Act of 1972 is amended by striking the items relating to title III and inserting in lieu thereof the following: “TITLE III— “Sec. 301. “Sec. 302. “Sec. 303. “Sec. 304. “Sec. 305. “Sec. 306. “Sec. 307.
SEC. 7. AMENDMENTS TO THE TUNA CONVENTIONS ACT. (a) Section 3(c) of the Tuna Conventions Act (16 U.S.C. 952(c)) is amended to read as follows: “(c) at least one shall be either the Administrator, or an appropriate officer, of the National Marine Fisheries Service; and”. (b) Section 4 of the Tuna Conventions Act (16 U.S.C. 953) is amended to read as follows:
“SEC. 4. GENERAL ADVISORY COMMITTEE AND SCIENTIFIC ADVISORY SUBCOMMITTEE. “(a) Appointments; Public Participation; Compensation.— The Secretary, in consultation with the United States Commissioners, shall— “(1) appoint a General Advisory Committee which shall be composed of not less than 5 nor more than 15 persons with balanced representation from the various groups participating in the fisheries included under the conventions, and from nongovernmental conservation organizations; “(2) appoint a Scientific Advisory Subcommittee which shall be composed of not less than 5 nor more than 15 qualified scientists with balanced representation from the public and private sectors, including nongovernmental conservation organizations; “(3) establish procedures to provide for appropriate public participation and public meetings and to provide for the confidentiality of confidential business data; and “(4) fix the terms of office of the members of the General Advisory Committee and Scientific Advisory Subcommittee, who shall receive no compensation for their services as such members. “(b) Functions.— “(1) General advisory committee.—The General Advisory Committee shall be invited to have representatives attend all nonexecutive meetings of the United States sections and shall be given full opportunity to examine and to be heard on all proposed programs of investigations, reports, recommendations, and regulations of the Commission. The General Advisory Committee may attend all meetings of the international commissions to which they are invited by such commissions. “(2) Scientific Advisory Subcommittee.— “(A) Advice.—The Scientific Advisory Subcommittee shall advise the General Advisory Committee and the Commissioners on matters including—111 STAT. 1138 “(i) the conservation of ecosystems; “(ii) the sustainable uses of living marine resources related to the tuna fishery in the eastern Pacific Ocean; and “(iii) the long-term conservation and management of stocks of living marine resources in the eastern tropical Pacific Ocean. “(B) Other functions and assistance.—The Scientific Advisory Subcommittee shall, as requested by the General Advisory Committee, the United States Commissioners, or the Secretary, perform functions and provide assistance required by formal agreements entered into by the United States for this fishery, including the International Dolphin Conservation Program. These functions may include— “(i) the review of data from the Program, including data received from the Inter-American Tropical Tuna Commission; “(ii) recommendations on research needs, including ecosystems, fishing practices, and gear technology research, including the development and use of selective, environmentally safe and cost-effective fishing gear, and on the coordination and facilitation of such research; “(iii) recommendations concerning scientific reviews and assessments required under the Program and engaging, as appropriate, in such reviews and assessments; “(iv) consulting with other experts as needed; and “(v) recommending measures to assure the regular and timely full exchange of data among the parties to the Program and each nation’s National Scientific Advisory Committee (or its equivalent). “(3) Attendance at meetings.—The Scientific Advisory Subcommittee shall be invited to have representatives attend all nonexecutive meetings of the United States sections and the General Advisory Subcommittee and shall be given full opportunity to examine and to be heard on all proposed programs of scientific investigation, scientific reports, and scientific recommendations of the commission. Representatives of the Scientific Advisory Subcommittee may attend meetings of the Inter-American Tropical Tuna Commission in accordance with the rules of such Commission.”.
(c) Bycatch Reduction.—The Tuna Conventions Act (16 U.S.C. 951 et seq.) is amended by adding at the end thereof the following:
“SEC. 15.

16 USC 962.

 REDUCTION OF BYCATCH IN THE EASTERN TROPICAL PACIFIC OCEAN. “The Secretary of State, in consultation with the Secretary of Commerce and acting through the United States Commissioners, shall seek, in cooperation with other nations whose vessel fish for tuna in the eastern tropical Pacific Ocean, to establish standards and measures for a bycatch reduction program for vessels fishing for yellowfin tuna in the eastern tropical Pacific Ocean. The bycatch reduction program shall include measures—111 STAT. 1139 “(1) to require, to the maximum extent practicable, that sea turtles and other threatened species and endangered species are released alive; “(2) to reduce, to the maximum extent practicable, the harvest of nontarget species; “(3) to reduce, to the maximum extent practicable, the mortality of nontarget species; and “(4) to reduce, to the maximum extent practicable, the mortality of juveniles of the target species.”.
SEC. 8. EFFECTIVE DATES.

16 USC 1362 note.

 (a) Amendments to Take Effect When IDCP in Force.—Sections 3 through 7 of this Act (except for section 304 of the Marine Mammal Protection Act of 1972 as added by section 6 of this Act) shall become effective upon— (1) certification by the Secretary of Commerce that— (A) sufficient funding is available to complete the first year of the study required under section 304(a) of the Marine Mammal Protection Act of 1972, as so added; and (B) the study has commenced; and (2) certification by the Secretary of State to Congress that a binding resolution of the Inter-American Tropical Tuna Commission or other legally binding instrument establishing the International Dolphin Conservation Program has been adopted and is in force. (b) Special Effective Date.—Notwithstanding subsection (a), the Secretary of Commerce may issue regulations under— (1) subsection (f)(2) of the Dolphin Protection Consumer Information Act (16 U.S.C. 1385(f)(2)), as added by section 5(b) of this Act; (2) section 303(a) of the Marine Mammal Protection Act of 1972 (16 U.S.C. 1413(a)), as added by section 6(c) of this Act, at any time after the date of enactment of this Act.
Approved August 15, 1997.
LEGISLATIVE HISTORY—H. R. 408 (S. 39): HOUSE REPORTS: No. 105–74, Pt. 1 (Comm. on Resources) and Pt. 2 (Comm. on Ways and Means). CONGRESSIONAL RECORD, Vol. 143 (1997):

May 21, considered and passed House.

July 30, considered and passed Senate, amended, in lieu of S. 39.

July 31, House concurred in Senate amendment.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):

Aug. 15, Presidential statement.

 Public Law 105–43: To continue favorable treatment for need-based educational aid under the antitrust laws. Public Law43 Public Law 105–43 111 Stat. 1140 1997-09-17 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1140 Public Law105–43 105th Congress
An Act To continue favorable treatment for need-based educational aid under the antitrust laws.

Sept. 17, 1997

[H.R. 1866]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Need-Based Educational Aid Antitrust Protection Act of 1997.

15 USC 1 note.
SECTION 1. SHORT TITLE. This Act may be cited as the “Need-Based Educational Aid Antitrust Protection Act of 1997”.
SEC. 2. CONTINUATION OF FAVORABLE TREATMENT FOR NEED-BASED EDUCATIONAL AID UNDER THE ANTITRUST LAWS. (a) Amendments.—Section 568 of the Improving America’s Schools Act of 1994 (15 U.S.C. 1 note) is amended— (1) in subsection (a)— (A) in the heading, by striking “Temporary”; and (B) by striking paragraph (4) and inserting the following: “(4) to exchange through an independent third party, before awarding need-based financial aid to any of such students who is commonly admitted to the institutions of higher education involved, data submitted by the student so admitted, the student’s family, or a financial institution on behalf of the student or the student’s family relating to assets, liabilities, income, expenses, the number of family members, and the number of the student’s siblings in college, if each of such institutions of higher education is permitted to retrieve such data only once with respect to the student.”; and (2) in subsection (d), by striking “September 30, 1997” and inserting “September 30, 2001”. (b)

15 USC 1 note.

 Effective Date.—The amendments made by subsection (a) shall take effect immediately before September 30, 1997.
Approved September 17, 1997.
LEGISLATIVE HISTORY—H.R. 1866: HOUSE REPORTS: No. 105–144 (Comm. on the Judiciary). CONGRESSIONAL RECORD, Vol 143 (1997):

June 23, considered and passed House.

July 30, considered and passed Senate, amended.

Sept. 8, House concurred in Senate amendment.

 Public Law 105–44: To designate the reservoir created by Trinity Dam in the Central Valley project, California, as “Trinity Lake”. Public Law44 Public Law 105–44 111 Stat. 1141 1997-09-30 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1141 Public Law105–44 105th Congress
An Act To designate the reservoir created by Trinity Dam in the Central Valley project, California, as “Trinity Lake”.

Sept. 30, 1997

[H.R. 63]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. DESIGNATION OF TRINITY LAKE.

16 USC 460q note.

 (a) Designation.—The reservoir created by Trinity Dam in note the Central Valley project, California, and designated as “Clair Engle Lake” by Public Law 88–662 (78 Stat. 1093) is hereby redesignated as “Trinity Lake”. (b) References.—Any reference in any law, regulation, document, record, map, or other paper of the United States to the reservoir referred to in subsection (a) shall be considered to be a reference to “Trinity Lake”. (c) Repeal of Earlier Designation.—Public Law 88–662 (78 Stat. 1093) is repealed.
Approved September 30, 1997.
LEGISLATIVE HISTORY—H.R. 63: HOUSE REPORTS: No. 105–9 (Comm. on Resources). SENATE REPORTS: No. 105–70 (Comm. on Energy and Natural Resources). CONGRESSIONAL RECORD, Vol. 143 (1997):

Mar. 11, considered and passed House.

Sept. 16, considered and passed Senate.

 Public Law 105–45: Making appropriations for military construction, family housing, and base realignment and closure for the Department of Defense for the fiscal year ending September 30, 1998, and for other purposes. Public Law45 Public Law 105–45 111 Stat. 1142 1997-09-30 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1142

*Note: This law contains items that were cancelled by the President and reinstated by Congress pursuant to the Line Item Veto Act (P.L. 104–130). For more information, see the “ENDNOTE” and Federal Register entry under “LEGISLATIVE HISTORY” at the end of this law.

 Public Law105–45 105th Congress
An Act Making appropriations for military construction, family housing, and base realignment and closure for the Department of Defense for the fiscal year ending September 30, 1998, and for other purposes.

Sept. 30, 1997

[H.R. 2016]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Military Construction Appropriations Act, 1998.
That the following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 1998, for military construction, family housing, and base realignment and closure functions administered by the Department of Defense, and for other purposes, namely:
Military Construction, Army For acquisition, construction, installation, and equipment of temporary or permanent public works, military installations, facilities, and real property for the Army as currently authorized by law, including personnel in the Army Corps of Engineers and other personal services necessary for the purposes of this appropriation, and for construction and operation of facilities in support of the functions of the Commander in Chief, $714,377,000, to remain available until September 30, 2002: Provided, That of this amount, not to exceed $65,577,000 shall be available for study, planning, design, architect and engineer services, and host nation support, as authorized by law, unless the Secretary of Defense determines that additional obligations are necessary for such purposes and notifies the Committees on Appropriations of both Houses of Congress of his determination and the reasons therefor. Military Construction, Navy For acquisition, construction, installation, and equipment of temporary or permanent public works, naval installations, facilities, and real property for the Navy as currently authorized by law, including personnel in the Naval Facilities Engineering Command and other personal services necessary for the purposes of this appropriation, $683,666,000, to remain available until September 30, 2002: Provided, That of this amount, not to exceed $46,489,000 shall be available for study, planning, design, architect and engineer services, as authorized by law, unless the Secretary of Defense determines that additional obligations are necessary for such purposes and notifies the Committees on Appropriations of both Houses of Congress of his determination and the reasons therefor.111 STAT. 1143 Military Construction, Air Force For acquisition, construction, installation, and equipment of temporary or permanent public works, military installations, facilities, and real property for the Air Force as currently authorized by law, $701,855,000, to remain available until September 30, 2002: Provided, That of this amount, not to exceed $44,880,000 shall be available for study, planning, design, architect and engineer services, as authorized by law, unless the Secretary of Defense determines that additional obligations are necessary for such purposes and notifies the Committees on Appropriations of both Houses of Congress of his determination and the reasons therefor. Military Construction, Defense-wide (including transfer of funds) For acquisition, construction, installation, and equipment of temporary or permanent public works, installations, facilities, and real property for activities and agencies of the Department of Defense (other than the military departments), as currently authorized by law, $646,342,000, to remain available until September 30, 2002: Provided, That such amounts of this appropriation as may be determined by the Secretary of Defense may be transferred to such appropriations of the Department of Defense available for military construction or family housing as he may designate, to be merged with and to be available for the same purposes, and for the same time period, as the appropriation or fund to which transferred: Provided further, That of the amount appropriated, not to exceed $48,850,000 shall be available for study, planning, design, architect and engineer services, as authorized by law, unless the Secretary of Defense determines that additional obligations are necessary for such purposes and notifies the Committees on Appropriations of both Houses of Congress of his determination and the reasons therefor. Military Construction, Army National Guard For construction, acquisition, expansion, rehabilitation, and conversion of facilities for the training and administration of the Army National Guard, and contributions therefor, as authorized by chapter 133 of title 10, United States Code, and Military Construction Authorization Acts, $118,350,000, to remain available until September 30, 2002. Military Construction, Air National Guard For construction, acquisition, expansion, rehabilitation, and conversion of facilities for the training and administration of the Air National Guard, and contributions therefor, as authorized by chapter 133 of title 10, United States Code, and Military Construction Authorization Acts, $190,444,000, to remain available until September 30, 2002. Military Construction, Army Reserve For construction, acquisition, expansion, rehabilitation, and conversion of facilities for the training and administration of the Army Reserve as authorized by chapter 133 of title 10, United 111 STAT. 1144States Code, and Military Construction Authorization Acts, $74,167,000, to remain available until September 30, 2002. Military Construction, Naval Reserve For construction, acquisition, expansion, rehabilitation, and conversion of facilities for the training and administration of the reserve components of the Navy and Marine Corps as authorized by chapter 133 of title 10, United States Code, and Military Construction Authorization Acts, $47,329,000, to remain available until September 30, 2002. Military Construction, Air Force Reserve For construction, acquisition, expansion, rehabilitation, and conversion of facilities for the training and administration of the Air Force Reserve as authorized by chapter 133 of title 10, United States Code, and Military Construction Authorization Acts, $30,243,000, to remain available until September 30, 2002. North Atlantic Treaty Organization Security Investment Program For the United States share of the cost of the North Atlantic Treaty Organization Security Investment Program for the acquisition and construction of military facilities and installations (including international military headquarters) and for related expenses for the collective defense of the North Atlantic Treaty Area as authorized in Military Construction Authorization Acts and section 2806 of title 10, United States Code, $152,600,000, to remain available until expended. Family Housing, Army For expenses of family housing for the Army for construction, including acquisition, replacement, addition, expansion, extension and alteration and for operation and maintenance, including debt payment, leasing, minor construction, principal and interest charges, and insurance premiums, as authorized by law, as follows: for Construction, $197,300,000, to remain available until September 30, 2002; for Operation and Maintenance, and for debt payment, $1,140,560,000; in all $1,337,868,000. Family Housing, Navy and Marine Corps For expenses of family housing for the Navy and Marine Corps for construction, including acquisition, replacement, addition, expansion, extension and alteration and for operation and maintenance, including debt payment, leasing, minor construction, principal and interest charges, and insurance premiums, as authorized by law, as follows: for Construction, $393,832,000, to remain available until September 30, 2002; for Operation and Maintenance, and for debt payment, $976,504,000; in all $1,370,336,000. Family Housing, Air Force For expenses of family housing for the Air Force for construction, including acquisition, replacement, addition, expansion, 111 STAT. 1145extension and alteration and for operation and maintenance, including debt payment, leasing, minor construction, principal and interest charges, and insurance premiums, as authorized by law, as follows: for Construction, $295,709,000, to remain available until September 30, 2002; for Operation and Maintenance, and for debt payment, $830,234,000; in all $1,125,943,000. Family Housing, Defense-wide For expenses of family housing for the activities and agencies of the Department of Defense (other than the military departments) for construction, including acquisition, replacement, addition, expansion, extension and alteration, and for operation and maintenance, leasing, and minor construction, as authorized by law, as follows: for Construction, $4,950,000, to remain available until September 30, 2002; for Operation and Maintenance, $32,724,000; in all $37,674,000. Base Realignment and Closure Account, Part II For deposit into the Department of Defense Base Closure Account 1990 established by section 2906(a)(1) of the Department of Defense Authorization Act, 1991 (Public Law 101-510), $116,754,000, to remain available until expended: Provided, That not more than $105,224,000 of the funds appropriated herein shall be available solely for environmental restoration, unless the Secretary of Defense determines that additional obligations are necessary for such purposes and notifies the Committees on Appropriations of both Houses of Congress of his determination and the reasons therefor. Base Realignment and Closure Account, Part III For deposit into the Department of Defense Base Closure Account 1990 established by section 2906(a)(1) of the Department of Defense Authorization Act, 1991 (Public Law 101-510), $768,702,000, to remain available until expended: Provided, That not more than $398,499,000 of the funds appropriated herein shall be available solely for environmental restoration, unless the Secretary of Defense determines that additional obligations are necessary for such purposes and notifies the Committees on Appropriations of both Houses of Congress of his determination and the reasons therefor. Base Realignment and Closure Account, Part IV For deposit into the Department of Defense Base Closure Account 1990 established by section 2906(a)(1) of the Department of Defense Authorization Act, 1991 (Public Law 101-510), $1,175,398,000, to remain available until expended: Provided, That not more than $353,604,000 of the funds appropriated herein shall be available solely for environmental restoration, unless the Secretary of Defense determines that additional obligations are necessary for such purposes and notifies the Committees on Appropriations of both Houses of Congress of his determination and the reasons therefor.111 STAT. 1146 GENERAL PROVISIONS
Sec. 101. None of the funds appropriated in Military Construction Appropriations Acts shall be expended for payments under a cost-plus-a-fixed-fee contract for work, where cost estimates exceed $25,000, to be performed within the United States, except Alaska, without the specific approval in writing of the Secretary of Defense setting forth the reasons therefor: Provided, That the foregoing shall not apply in the case of contracts for environmental restoration at an installation that is being closed or realigned where payments are made from a Base Realignment and Closure Account.
Sec. 102. Funds appropriated to the Department of Defense for construction shall be available for hire of passenger motor vehicles.
Sec. 103. Funds appropriated to the Department of Defense for construction may be used for advances to the Federal Highway Administration, Department of Transportation, for the construction of access roads as authorized by section 210 of title 23, United States Code, when projects authorized therein are certified as important to the national defense by the Secretary of Defense.
Sec. 104. None of the funds appropriated in this Act may be used to begin construction of new bases inside the continental United States for which specific appropriations have not been made.
Sec. 105. No part of the funds provided in Military Construction Appropriations Acts shall be used for purchase of land or land easements in excess of 100 per centum of the value as determined by the Army Corps of Engineers or the Naval Facilities Engineering Command, except: (1) where there is a determination of value by a Federal court; or (2) purchases negotiated by the Attorney General or his designee; or (3) where the estimated value is less than $25,000; or (4) as otherwise determined by the Secretary of Defense to be in the public interest.
Sec. 106. None of the funds appropriated in Military Construction Appropriations Acts shall be used to: (1) acquire land; (2) provide for site preparation; or (3) install utilities for any family housing, except housing for which funds have been made available in annual Military Construction Appropriations Acts.
Sec. 107. None of the funds appropriated in Military Construction Appropriations Acts for minor construction may be used to transfer or relocate any activity from one base or installation to another, without prior notification to the Committees on Appropriations.
Sec. 108. No part of the funds appropriated in Military Construction Appropriations Acts may be used for the procurement of steel for any construction project or activity for which American steel producers, fabricators, and manufacturers have been denied the opportunity to compete for such steel procurement.
Sec. 109. None of the funds available to the Department of Defense for military construction or family housing during the current fiscal year may be used to pay real property taxes in any foreign nation.
Sec. 110. None of the funds appropriated in Military Construction Appropriations Acts may be used to initiate a new installation overseas without prior notification to the Committees on Appropriations.
Sec. 111. None of the funds appropriated in Military Construction Appropriations Acts may be obligated for architect and engineer 111 STAT. 1147contracts estimated by the Government to exceed $500,000 for projects to be accomplished in Japan, in any NATO member country, or in countries bordering the Arabian Gulf, unless such contracts are awarded to United States firms or United States firms in joint venture with host nation firms.
Sec. 112. None of the funds appropriated in Military Construction Appropriations Acts for military construction in the United States territories and possessions in the Pacific and on Kwajalein Atoll, or in countries bordering the Arabian Gulf, may be used to award any contract estimated by the Government to exceed $1,000,000 to a foreign contractor: Provided, That this section shall not be applicable to contract awards for which the lowest responsive and responsible bid of a United States contractor exceeds the lowest responsive and responsible bid of a foreign contractor by greater than 20 per centum: Provided further, That this section shall not apply to contract awards for military construction on Kwajalein Atoll for which the lowest responsive and responsible bid is submitted by a Marshallese contractor.
Sec. 113. The Secretary of Defense is to inform the appropriate

Notification.

 committees of Congress, including the Committees on Appropriations, of the plans and scope of any proposed military exercise involving United States personnel thirty days prior to its occurring, if amounts expended for construction, either temporary or permanent, are anticipated to exceed $100,000.
Sec. 114. Not more than 20 per centum of the appropriations in Military Construction Appropriations Acts which are limited for obligation during the current fiscal year shall be obligated during the last two months of the fiscal year.
(transfer of funds)
Sec. 115. Funds appropriated to the Department of Defense for construction in prior years shall be available for construction authorized for each such military department by the authorizations enacted into law during the current session of Congress.
Sec. 116. For military construction or family housing projects that are being completed with funds otherwise expired or lapsed for obligation, expired or lapsed funds may be used to pay the cost of associated supervision, inspection, overhead, engineering and design on those projects and on subsequent claims, if any.
Sec. 117. Notwithstanding any other provision of law, any

10 USC 2860 note.

 funds appropriated to a military department or defense agency for the construction of military projects may be obligated for a military construction project or contract, or for any portion of such a project or contract, at any time before the end of the fourth fiscal year after the fiscal year for which funds for such project were appropriated if the funds obligated for such project: (1) are obligated from funds available for military construction projects and (2) do not exceed the amount appropriated for such project, plus any amount by which the cost of such project is increased pursuant to law.
(transfer of funds)
Sec. 118. During the five-year period after appropriations available

10 USC 2860 note.

 to the Department of Defense for military construction and family housing operation and maintenance and construction have 111 STAT. 1148expired for obligation, upon a determination that such appropriations will not be necessary for the liquidation of obligations or for making authorized adjustments to such appropriations for obligations incurred during the period of availability of such appropriations, unobligated balances of such appropriations may be transferred into the appropriation “Foreign Currency Fluctuations, Construction, Defense” to be merged with and to be available for the same time period and for the same purposes as the appropriation to which transferred.
Sec. 119.

Reports.

 The Secretary of Defense is to provide the Committees on Appropriations of the Senate and the House of Representatives with an annual report by February 15, containing details of the specific actions proposed to be taken by the Department of Defense during the current fiscal year to encourage other member nations of the North Atlantic Treaty Organization, Japan, Korea, and United States allies bordering the Arabian Gulf to assume a greater share of the common defense burden of such nations and the United States.
(transfer of funds)
Sec. 120. During the current fiscal year, in addition to any other transfer authority available to the Department of Defense, proceeds deposited to the Department of Defense Base Closure Account established by section 207(a)(1) of the Defense Authorization Amendments and Base Closure and Realignment Act (Public Law 100-526) pursuant to section 207(a)(2)(C) of such Act, may be transferred to the account established by section 2906(a)(1) of the Department of Defense Authorization Act, 1991, to be merged with, and to be available for the same purposes and the same time period as that account.
Sec. 121. No funds appropriated pursuant to this Act may be expended by an entity unless the entity agrees that in expending the assistance the entity will comply with sections 2 through 4 of the Act of March 3, 1933 (41 U.S.C. 10a–10c, popularly known as the “Buy American Act”).
Sec. 122. (a) In the case of any equipment or products that may be authorized to be purchased with financial assistance provided under this Act, it is the sense of the Congress that entities receiving such assistance should, in expending the assistance, purchase only American-made equipment and products. (b)

Notice.

 In providing financial assistance under this Act, the Secretary of the Treasury shall provide to each recipient of the assistance a notice describing the statement made in subsection (a) by the Congress.
(transfer of funds)
Sec. 123. (a) Subject to thirty days prior notification to the Committees on Appropriations, such additional amounts as may be determined by the Secretary of Defense may be transferred to the Department of Defense Family Housing Improvement Fund from amounts appropriated for construction in “Family Housing” accounts, to be merged with and to be available for the same purposes and for the same period of time as amounts appropriated directly to the Fund: Provided, That appropriations made available to the Fund shall be available to cover the costs, as defined in section 502(5) of the Congressional Budget Act of 1974, of direct 111 STAT. 1149loans or loan guarantees issued by the Department of Defense pursuant to the provisions of subchapter IV of chapter 169, title 10, United States Code, pertaining to alternative means of acquiring and improving military family housing and supporting facilities. (b) Subject to thirty days prior notification to the Committees on Appropriations, such additional amounts as may be determined by the Secretary of Defense may be transferred to the Department of Defense Military Unaccompanied Housing Improvement Fund from amounts appropriated for the acquisition or construction of military unaccompanied housing in “Military Construction” accounts, to be merged with and to be available for the same purposes and for the same period of time as amounts appropriated directly to the Fund: Provided, That appropriations made available to the Fund shall be available to cover the costs, as defined in section 502(5) of the Congressional Budget Act of 1974, of direct loans or loan guarantees issued by the Department of Defense pursuant to the provisions of subchapter IV of chapter 169, title 10, United States Code, pertaining to alternative means of acquiring and improving military unaccompanied housing and ancillary supporting facilities.
Sec. 124. Notwithstanding any other provision of law, appropriations made available to the Department of Defense Family Housing Improvement Fund shall be the sole source of funds available for planning, administrative, and oversight costs incurred by the Housing Revitalization Support Office relating to military family housing initiatives and military unaccompanied housing initiatives undertaken pursuant to the provisions of subchapter IV of chapter 169, title 10, United States Code, pertaining to alternative means of acquiring and improving military family housing, military unaccompanied housing, and supporting facilities.
Sec. 125. Notwithstanding any other provisions in this Act, the following accounts are hereby reduced by the specified amounts— “Military Construction, Army”, $7,900,000; “Military Construction, Navy”, $5,600,000; “Military Construction, Air Force”, $7,600,000; “Military Construction, Defense-wide”, $6,100,000; “North Atlantic Treaty Organization Security Investment Program”, $1,000,000; “Base Realignment and Closure Account, Part III”, $8,000,000; “Base Realignment and Closure Account, Part IV”, $8,000,000; “Family Housing, Army”, $36,700,000; “Family Housing, Navy and Marine Corps”, $13,100,000; “Family Housing, Air Force”, $14,700,000; and “Family Housing, Defense-wide”, $100,000.
Sec. 126. Notwithstanding any other provision of law, from the funds appropriated in this Act for Military Construction, Army, the Secretary of the Army is directed to complete, using an Unspecified Minor Construction project, the Special Forces (Diver) Training Facility at Key West Naval Air Station, Florida, as authorized in the Military Construction Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101–189).
Sec. 127. (a) Lease of Property Authorized.—Notwithstanding

Hawaii.

 any other provision of law, the Secretary of the Navy (hereinafter referred to as the “Secretary”) may lease, without monetary 111 STAT. 1150consideration, to the city and county of Honolulu (hereinafter referred to as the “city”) a parcel of land consisting of approximately 300 acres on Waipio Peninsula, Honolulu, Hawaii (hereinafter referred to as the “parcel”). (b) Related Easement.—The Secretary may also grant, without monetary consideration, an easement on, over, under and across that certain real property known as Waipio Point Access Road for access to and operation of the parcel. (c) Term.—The term of the lease and easement authorized under this section shall be fifty (50) years. (d) Condition of Use.—The lease and easement authorized under subsections (a) and (b) shall be subject to the following conditions: (1) The city shall use the parcel for development and operation of a public soccer park and related recreational facilities, and for other civic and public purposes as may be approved by the Secretary. (2) Facilities developed on the parcel shall be for public use and benefit; however, usage fees may be charged to defray facility operating and maintenance costs. (3) The city shall comply with all explosive safety criteria affecting the city’s use of the lease and easement areas, as established by the Secretary in connection with the explosive safety areas supporting the ordinance handling wharves located at West Loch Branch, Naval Magazine, Lualualei, Hawaii. (4) The city shall, at its own cost and to the satisfaction of the Secretary, make any and all improvements to Waipio Point Access Road which the city determines are necessary to provide onstreet parking along said road, and adequate access to the parcel, including, but not limited to, any necessary appurtenant utility and drainage improvements. During the term of said easement, the cost of maintenance, repair and replacement of said road and improvements shall be borne by the city. (5) The city shall install a non-potable irrigation water delivery system to service the parcel, and in doing so, the city shall size transmission lines capable of delivering approximately 2.5 million additional gallons of irrigation water per day to agricultural lands on Waipio Peninsula under the control of the Secretary. (e) Termination.—If the Secretary determines at any time that the parcel is not being used for a purpose specified in subsection (d)(1), the lease and easement authorized under subsections (a) and (b) may be terminated, and all right, title, and interest in and to such real property, including any improvements thereon, shall revert to the United States, and the United States shall have the right of immediate entry thereon.111 STAT. 1151 (f) Effect of Expiration of Lease.—Unless otherwise specifically provided for in this section, at the end of the lease and easement term, the city shall either convey, without reimbursement, to the United States, all right, title, and interest of the city in and to the improvements subject to said lease and easement, or restore, to the extent practicable, the lease and easement areas to the satisfaction of the Secretary. (g) Description of Property.—The exact acreage and legal description of the property subject to this section shall be determined by a survey satisfactory to the Secretary. The cost of such survey shall be borne by the city. (h) Additional Terms and Conditions.—The Secretary may require such additional terms and conditions in connection with the lease and easement to be granted under this section as the Secretary considers appropriate to protect the interests of the United States.
Sec. 128. (a) Not later than 60 days before issuing any solicitation

Notice.

 for a contract with the private sector for military family housing or military unaccompanied housing, the Secretary of the military department concerned shall submit to the congressional defense committees the notice described in subsection (b). (b)(1) A notice referred to in subsection (a) is a notice of any guarantee (including the making of mortgage or rental payments) proposed to be made by the Secretary to the private party under the contract involved in the event of— (A) the closure or realignment of the installation for which housing is provided under the contract; (B) a reduction in force of units stationed at such installation; or (C) the extended deployment overseas of units stationed at such installation. (2) Each notice under this subsection shall specify the nature of the guarantee involved and assess the extent and likelihood, if any, of the liability of the Federal Government with respect to the guarantee. (c) In this section, the term “congressional defense committees” means the following: (1) The Committee on Armed Services and the Military Construction Subcommittee, Committee on Appropriations of the Senate.111 STAT. 1152 (2) The Committee on National Security and the Military Construction Subcommittee, Committee on Appropriations of the House of Representatives. This Act may be cited as the “Military Construction Appropriations Act, 1998”
Approved September 30, 1997.

ENDNOTE: On February 25, 1998, Congress enacted into law “An Act disapproving the cancellations transmitted by the President on October 6, 1997, regarding Public Law 105–45,” (P.L. 105–159; 112 Stat. 19).

 LEGISLATIVE HISTORY—H.R. 2016: HOUSE REPORTS: Nos. 105–150 (Comm. on Appropriations) and 105–247 (Comm. of Conference). SENATE REPORTS: No. 105–52 (Comm. on Appropriations). CONGRESSIONAL RECORD, Vol. 143 (1997):

July 8, considered and passed House.

July 22, considered and passed Senate, amended.

Sept. 16, House agreed to conference report.

Sept. 17, Senate agreed to conference report.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):

Sept. 30, Presidential statement.

Oct. 6, President's special message on line item veto.

 FEDERAL REGISTER, Vol. 62 (1997):

Oct. 7, Cancellation of items pursuant to the Line Item Veto Act

 Public Law 105–46: Making continuing appropriations for the fiscal year 1998, and for other purposes. Public Law46 Public Law 105–46 111 Stat. 1153 1997-09-30 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1153 Public Law105–46 105th Congress
Joint Resolution Making continuing appropriations for the fiscal year 1998, and for other purposes.

Sept. 30, 1997

[H.J. Res. 94]

 Resolved, by the Senate and House of Representatives of the United States of America in Congress assembled,
That the following sums are hereby appropriated, out of any money in the Treasury not otherwise appropriated, and out of applicable corporate or other revenues, receipts, and funds, for the several departments, agencies, corporations, and other organizational units of Government for the fiscal year 1998, and for other purposes, namely:
Section 101. (a) Such amounts as may be necessary under the authority and conditions provided in the applicable appropriations Act for the fiscal year 1997 for continuing projects or activities including the costs of direct loans and loan guarantees (not otherwise specifically provided for in this joint resolution) which were conducted in the fiscal year 1997 and for which appropriations, funds, or other authority would be available in the following appropriations Acts: (1) the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1998; (2) the Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1998, notwithstanding section 15 of the State Department Basic Authorities Act of 1956, section 701 of the United States Information and Educational Exchange Act of 1948, section 313 of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995 (Public Law 103–236), and section 53 of the Arms Control and Disarmament Act; (3) the Department of Defense Appropriations Act, 1998, notwithstanding section 504(a)(1) of the National Security Act of 1947; (4) the District of Columbia Appropriations Act, 1998, the House and Senate reported versions of which shall be deemed to have passed the House and the Senate respectively as of October 1, 1997, for the purposes of this joint resolution, unless a reported version is passed as of October 1, 1997, in which case the passed version shall be used in place of the reported version for the purposes of this joint resolution; (5) the Energy and Water Development Appropriations Act, 1998; (6) the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1998, notwithstanding section 10 of Public Law 91–672 and section 15(a) of the State Department Basic Authorities Act of 1956;111 STAT. 1154 (7) the Department of the Interior and Related Agencies Appropriations Act, 1998; (8) the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 1998; (9) the Legislative Branch Appropriations Act, 1998; (10) the Military Construction Appropriations Act, 1998; (11) the Department of Transportation Appropriations Act, 1998; (12) the Treasury, Postal Service, and General Government Appropriations Act, 1998; and (13) the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998: Provided, That whenever the amount which would be made available or the authority which would be granted in these Acts as passed by the House and Senate as of October 1, 1997, is different than that which would be available or granted under current operations, the pertinent project or activity shall be continued at a rate for operations not exceeding the current rate: Provided further, That whenever the amount of the budget request is less than the amount for current operations and the amount which would be made available or the authority which would be granted in these appropriations Acts as passed by the House and Senate as of October 1, 1997, is less than the amount for current operations, then the pertinent project or activity shall be continued at a rate for operations not exceeding the greater of the rates that would be provided by the amount of the budget request or the amount which would be made available or the authority which would be granted in these appropriations Acts: Provided further, That whenever there is no amount made available under any of these appropriations Acts as passed by the House and Senate as of October 1, 1997, for a continuing project or activity which was conducted in fiscal year 1997 and for which there is fiscal year 1998 funding included in the budget request, the pertinent project or activity shall be continued at a rate for operations not exceeding the lesser of the rates that would be provided by the amount of the budget request or the rate for current operations under the authority and conditions provided in the applicable appropriations Act for the fiscal year 1997. (b) Whenever the amount which would be made available or the authority which would be granted under an Act listed in this section as passed by the House as of October 1, 1997, is different from that which would be available or granted under such Act as passed by the Senate as of October 1, 1997, the pertinent project or activity shall be continued at a rate for operations not exceeding the current rate under the appropriation, fund, or authority granted by the applicable appropriations Act for the fiscal year 1998 and under the authority and conditions provided in the applicable appropriations Act for the fiscal year 1997: Provided, That whenever the amount of the budget request is less than the amount for current operations and the amounts which would be made available or the authority which would be granted in these appropriations Acts as passed by the House and the Senate as of October 1, 1997, are both less than the amount for current operations, then the pertinent project or activity shall be continued at a rate for operations not exceeding the greater of the rates that would be provided by the amount of the budget request or 111 STAT. 1155the amount which would be made available or the authority which would be granted in the applicable appropriations Act as passed by the House or as passed by the Senate under the appropriation, fund, or authority provided in the applicable appropriations Act for the fiscal year 1998 and under the authority and conditions provided in the applicable appropriations Act for the fiscal year 1997. (c) Whenever an Act listed in this section has been passed by only the House or only the Senate as of October 1, 1997, the pertinent project or activity shall be continued under the appropriation, fund, or authority granted by the one House at a rate for operations not exceeding the current rate and under the authority and conditions provided in the applicable appropriations Act for the fiscal year 1997: Provided, That whenever the amount of the budget request is less than the amount for current operations and the amounts which would be made available or the authority which would be granted in the appropriations Act as passed by the one House as of October 1, 1997, is less than the amount for current operations, then the pertinent project or activity shall be continued at a rate for operations not exceeding the greater of the rates that would be provided by the amount of the budget request or the amount which would be made available or the authority which would be granted in the applicable appropriations Act as passed by the one House under the appropriation, fund, or authority provided in the applicable appropriations Act for the fiscal year 1998 and under the authority and conditions provided in the applicable appropriations Act for the fiscal year 1997: Provided further, That whenever there is no amount made available under any of these appropriations Acts as passed by the House or the Senate as of October 1, 1997, for a continuing project or activity which was conducted in fiscal year 1997 and for which there is fiscal year 1998 funding included in the budget request, the pertinent project or activity shall be continued at a rate for operations not exceeding the lesser of the rates that would be provided by the amount of the budget request or the rate for current operations under the authority and conditions provided in the applicable appropriations Act for the fiscal year 1997.
Sec. 102. No appropriation or funds made available or authority granted pursuant to section 101 for the Department of Defense shall be used for new production of items not funded for production in fiscal year 1997 or prior years, for the increase in production rates above those sustained with fiscal year 1997 funds, or to initiate, resume, or continue any project, activity, operation, or organization which are defined as any project, subproject, activity, budget activity, program element, and subprogram within a program element and for investment items are further defined as a P–1 line item in a budget activity within an appropriation account and an R–1 line item which includes a program element and subprogram element within an appropriation account, for which appropriations, funds, or other authority were not available during the fiscal year 1997: Provided, That no appropriation or funds made available or authority granted pursuant to section 101 for the Department of Defense shall be used to initiate multi-year procurements utilizing advance procurement funding for economic order quantity procurement unless specifically appropriated later.111 STAT. 1156
Sec. 103. Appropriations made by section 101 shall be available to the extent and in the manner which would be provided by the pertinent appropriations Act.
Sec. 104. No appropriation or funds made available or authority granted pursuant to section 101 shall be used to initiate or resume any project or activity for which appropriations, funds, or other authority were not available during the fiscal year 1997.
Sec. 105. No provision which is included in an appropriations Act enumerated in section 101 but which was not included in the applicable appropriations Act for fiscal year 1997 and which by its terms is applicable to more than one appropriation, fund, or authority shall be applicable to any appropriation, fund, or authority provided in this joint resolution.
Sec. 106.

Termination date.

 Unless otherwise provided for in this joint resolution or in the applicable appropriations Act, appropriations and funds made available and authority granted pursuant to this joint resolution shall be available until: (1) enactment into law of an appropriation for any project or activity provided for in this joint resolution; or (2) the enactment into law of the applicable appropriations Act by both Houses without any provision for such project or activity; or (3) October 23, 1997, whichever first occurs.
Sec. 107. Appropriations made and authority granted pursuant to this joint resolution shall cover all obligations or expenditures incurred for any program, project, or activity during the period for which funds or authority for such project or activity are available under this joint resolution.
Sec. 108. Expenditures made pursuant to this joint resolution shall be charged to the applicable appropriation, fund, or authorization whenever a bill in which such applicable appropriation, fund, or authorization is contained is enacted into law.
Sec. 109. No provision in the appropriations Act for the fiscal year 1998 referred to in section 101 of this Act that makes the availability of any appropriation provided therein dependent upon the enactment of additional authorizing or other legislation shall be effective before the date set forth in section 106(3) of this joint resolution.
Sec. 110. Appropriations and funds made available by or authority granted pursuant to this joint resolution may be used without regard to the time limitations for submission and approval of apportionments set forth in section 1513 of title 31, United States Code, but nothing herein shall be construed to waive any other provision of law governing the apportionment of funds.
Sec. 111. This joint resolution shall be implemented so that only the most limited funding action of that permitted in the joint resolution shall be taken in order to provide for continuation of projects and activities.
Sec. 112. Notwithstanding any other provision of this joint resolution, except section 106, for those programs that had high initial rates of operation or complete distribution of fiscal year 1997 appropriations at the beginning of that fiscal year because of distributions of funding to States, foreign countries, grantees or others, similar distributions of funds for fiscal year 1998 shall not be made and no grants shall be awarded for such programs funded by this resolution that would impinge on final funding prerogatives.
Sec. 113.

15 USC 77f note

 Notwithstanding any other provision of this joint resolution, except section 106, the amount made available to the 111 STAT. 1157Securities and Exchange Commission, under the heading Salaries and Expenses, shall include, in addition to direct appropriations, the amount it collects under the fee rate and offsetting collection authority contained in Public Law 104–208, which fee rate and offsetting collection authority shall remain in effect during the period of this joint resolution.
Sec. 114. Notwithstanding any other provision of this joint resolution, except section 106, the rate for operations for projects and activities that would be funded under the heading “International Organizations and Conferences, Contributions to International Organizations” in the Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1998, shall be the amount provided by the provisions of section 101 multiplied by the ratio of the number of days covered by this resolution to 365.
Sec. 115. Notwithstanding any other provision of this joint resolution, except section 106, the amounts made available for the following new programs authorized by the National Capital Revitalization and Self-Government Act of 1997, Public Law 105–33, shall be the higher of the amounts in the budget request or the House or Senate District of Columbia Appropriations Act, 1998, passed as of October 1, 1997, multiplied by the ratio of the number of days covered by this joint resolution to 365: Federal Contribution to the Operations of the Nation’s Capital; Federal Payment to the District of Columbia Corrections Trustee Operations; Payment to the District of Columbia Corrections Trustee for Correctional Facilities, Construction and Repair, and Federal Payment to the District of Columbia Criminal Justice System: Provided, That the amounts made available for the last item shall be made available to the Joint Committee on Judicial Administration in the District of Columbia; the District of Columbia Truth in Sentencing Commission; the Pretrial Services, Defense Services, Parole, Adult Probation, and Offender Supervision Trustee; and the United States Parole Commission, as appropriate.
Sec. 116. Notwithstanding any other provision of this joint

8 USC 1351 note.

 resolution, except section 106, the authorities provided under subsection (a) of section 140 of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995 (Public Law 103–236) shall remain in effect during the period of this Act, notwithstanding paragraphs (3) and (5) of said subsection.
Sec. 117. Notwithstanding any other provision of this joint resolution, except section 106, the authorities provided under 217 of the Immigration and Nationality Act (8 U.S.C. 1187) shall remain in effect during the period of this joint resolution, notwithstanding subsection (f) of said section.
Sec. 118. The National Flood Insurance Act of 1968 (42 U.S.C. 4026) is amended in section 1319 by striking “September 30, 1997”

42 USC 4026 note.

 and inserting “October 23, 1997” and in section 1336 by striking “September 30, 1996” and inserting “October 23, 1997”.
Sec. 119. Notwithstanding section 204 of the Financial Responsibility and Management Assistance Act of 1995 related to the latest maturity date for the short-term Treasury advances, the District of Columbia government may delay repayment of the 1997 Treasury advances beyond October 1, 1997 until it receives the full year Federal contribution, as authorized by section 11601 of the National Capital Revitalization find Self-Government Improvement Act of 1997, Public Law 105–33. Any interest or 111 STAT. 1158 penalties that would generally apply to such late payments are hereby waived under this provision.
Sec. 120. In addition to the amounts made available for the Veterans Health Administration, Medical Care account pursuant to section 101 of this joint resolution, this account is also available for necessary administrative and legal expenses of the Department for collecting and recovering amounts owed the Department as authorized under 38 U.S.C. chapter 17, and the Federal Medical Care Recovery Act, 42 U.S.C. 2651 et seq.
Sec. 121. Notwithstanding section 235(a)(3) of the Foreign Assistance Act of 1961 (22 U.S.C. 2195(a)(3)), the authority of section 235(a)(1) and (2), of the same Act, shall remain in effect during the period of this joint resolution.
Sec. 122. Section 7 of the Export-Import Bank Act of 1945 (12 U.S.C.635f) is amended by striking “1997” and inserting “October 23, 1997”.
Sec. 123.

8 USC 1182 note.

 Section 506(c) of Public Law 103–317 is amended by striking “September 30, 1997” and inserting “October 23, 1997”.
Approved September 30, 1997.
LEGISLATIVE HISTORY—H.J. Res. 94: CONGRESSIONAL RECORD, Vol. 143 (1997):

Sept. 29, considered and passed House.

Sept. 30, considered and passed Senate.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):

Sept. 30, Presidential statement.

 Public Law 105–47: To authorize appropriations for carrying out the Earthquake Hazards Reduction Act of 1977 for fiscal years 1998 and 1999. and for other purposes. Public Law47 Public Law 105–47 111 Stat. 1159 1997-10-01 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1159 Public Law105–47 105th Congress
An Act To authorize appropriations for carrying out the Earthquake Hazards Reduction Act of 1977 for fiscal years 1998 and 1999. and for other purposes.

Oct. 1, 1997

[S. 910]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. AUTHORIZATION OF APPROPRIATIONS. Section 12 of the Earthquake Hazards Reduction Act of 1977 (42 U.S.C. 7706) is amended— (1) in subsection (a)(7)— (A) by striking “and” after “1995,”; and (B) by inserting before the period at the end the following: “, $20,900,000 for the fiscal year ending September 30, 1998, and $21,500,000 for the fiscal year ending September 30, 1999”; (2) in subsection (b)— (A) by striking “and” after “September 30, 1995;”; (B) by inserting before the period at the end the following: “; $52,565,000 for the fiscal year ending September 30, 1998, of which $3,800,000 shall be used for the Global Seismic Network operated by the Agency; and $54,052,000 for the fiscal year ending September 30, 1999, of which $3,800,000 shall be used for the Global Seismic Network operated by the Agency”; and (C) by adding at the end the following: “Of the amounts authorized to be appropriated under this subsection, at least— “(1) $8,000,000 of the amount authorized to be appropriated for the fiscal year ending September 30, 1998; and “(2) $8,250,000 of the amount authorized for the fiscal year ending September 30, 1999, shall be used for carrying out a competitive, peer-reviewed program under which the Director, in close coordination with and as a complement to related activities of the United States Geological Survey, awards grants to, or enters into cooperative agreements with, State and local governments and persons or entities from the academic community and the private sector.”; (3) in subsection (c)— (A) by striking “and” after “September 30, 1995,”; and (B) by inserting before the period at the end the following: “, (3) $18,450,000 for engineering research and $11,920,000 for geosciences research for the fiscal year ending September 30, 1998, and (4) $19,000,000 for engineering research and $12,280,000 for geosciences 111 STAT. 1160research for the fiscal year ending September 30, 1999”; and (4) in the last sentence of subsection (d)— (A) by striking “and” after “September 30, 1995,”; and (B) by inserting before the period at the end the following: “, $2,000,000 for the fiscal year ending September 30, 1998, and $2,060,000 for the fiscal year ending September 30, 1999”.
SEC. 2.

42 USC 7704 note.

 AUTHORIZATION OF REAL-TIME SEISMIC HAZARD WARNING SYSTEM DEVELOPMENT. AND OTHER ACTIVITIES. (a) Automatic Seismic Warning System Development.— (1) Definitions.—In this section: (A) Director.—The term “Director” means the Director of the United States Geological Survey. (B) High-risk activity.—The term “high-risk activity” means an activity that may be adversely affected by a moderate to severe seismic event (as determined by the Director). The term includes high-speed rail transportation. (C) Real-time seismic warning system.—The term “real-time seismic warning system” means a system that issues warnings in real-time from a network of seismic sensors to a set of analysis processors, directly to receivers related to high-risk activities. (2) In general.—The Director shall conduct a program to develop a prototype real-time seismic warning system. The Director may enter into such agreements or contracts as may be necessary to carry out the program. (3) Upgrade of seismic sensors.—In carrying out a program under paragraph (2), in order to increase the accuracy and speed of seismic event analysis to provide for timely warning signals, the Director shall provide for the upgrading of the network of seismic sensors participating in the prototype to increase the capability of the sensors— (A) to measure accurately large magnitude seismic events (as determined by the Director); and (B) to acquire additional parametric data. (4) Development of communications and computation infrastructure.—In carrying out a program under paragraph (2), the Director shall develop a communications and computation infrastructure that is necessary— (A) to process the data obtained from the upgraded seismic sensor network referred to in paragraph (3); and (B) to provide for, and carry out, such communications engineering and development as is necessary to facilitate— (i) the timely flow of data within a real-time seismic hazard warning system; and (ii) the issuance of warnings to receivers related to high-risk activities. (5) Procurement of computer hardware and computer software.—In carrying out a program under paragraph (2), the Director shall procure such computer hardware and computer software as may be necessary to carry out the program. (6) Reports on progress.— (A) In general.—Not later than 120 days after the date of enactment of this Act, the Director shall prepare and submit to Congress a report that contains a plan 111 STAT. 1161for implementing a real-time seismic hazard warning system. (B) Additional reports.—Not later than 1 year after the date on which the Director submits the report under subparagraph (A), and annually thereafter, the Director shall prepare and submit to Congress a report that summarizes the progress of the Director in implementing the plan referred to in subparagraph (A). (7) Authorization of appropriations.—In addition to the amounts made available to the Director under section 12(b) of the Earthquake Hazards Reduction Act of 1977 (42 U.S.C. 7706(b)), there are authorized to be appropriated to the Department of the Interior, to be used by the Director to carry out paragraph (2), $3,000,000 for each of fiscal years 1998 and 1999. (b) Seismic Monitoring Networks Assessment.— (1) In general.—The Director shall provide for an assessment of regional seismic monitoring networks in the United States. The assessment shall address— (A) the need to update the infrastructure used for collecting seismological data for research and monitoring of seismic events in the United States; (B) the need for expanding the capability to record strong ground motions, especially for urban area engineering purposes; (C) the need to measure accurately large magnitude seismic events (as determined by the Director); (D) the need to acquire additional parametric data; and (E) projected costs for meeting the needs described in subparagraphs (A) through (D). (2) Results.—The Director shall transmit the results of the assessment conducted under this subsection to Congress not later than 1 year after the date of enactment of this Act. (c) Earth Science Teaching Materials.— (1) Definitions.—In this subsection: (A) Local educational agency.—The term “local educational agency” has the meaning given that term in section 14101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801). (B) School.—The term “school” means a nonprofit institutional day or residential school that provides education for any of the grades kindergarten through grade 12. (2) Teaching materials.—In a manner consistent with the requirement under section 5(b)(4) of the Earthquake Hazards Reduction Act of 1977 (42 U.S.C. 7704(b)(4)) and subject to a merit based competitive process, the Director of the National Science Foundation may use funds made available to him or her under section 12(c) of such Act (42 U.S.C. 7706(c)) to develop, and make available to schools and local educational agencies for use by schools, at a minimal cost, earth science teaching materials that are designed to meet the needs of elementary and secondary school teachers and students. (d) Improved Seismic Hazard Assessment.—111 STAT. 1162 (1) In general.—As soon as practicable after the date of enactment of this Act, the Director shall conduct a project to improve the seismic hazard assessment of seismic zones. (2) Reports.— (A) In general.—Not later than 1 year after the date of enactment of this Act, and annually during the period of the project, the Director shall prepare, and submit to Congress, a report on the findings of the project. (B) Final report.—Not later than 60 days after the date of termination of the project conducted under this subsection, the Director shall prepare and submit to Congress a report concerning the findings of the project. (e) Study of National Earthquake Emergency Training Capabilities.— (1) In general.—The Director of the Federal Emergency Management Agency shall conduct an assessment of the need for additional Federal disaster-response training capabilities that are applicable to earthquake response. (2) Contents of assessment.—The assessment conducted under this subsection shall include— (A) a review of the disaster training programs offered by the Federal Emergency Management Agency at the time of the assessment; (B) an estimate of the number and types of emergency response personnel that have, during the period beginning on January 1, 1990 and ending on July 1, 1997, sought the training referred to in subparagraph (A), but have been unable to receive that training as a result of the oversubscription of the training capabilities of the Federal Emergency Management Agency; and (C) a recommendation on the need to provide additional Federal disaster-response training centers. (3) Report.—Not later than 180 days after the date of enactment of this Act, the Director shall prepare and submit to Congress a report that addresses the results of the assessment conducted under this subsection.
SEC. 3. COMPREHENSIVE ENGINEERING RESEARCH PLAN. (a) National Science Foundation.—Section 5(b)(4) of the Earthquake Hazards Reduction Act of 1977 (42 U.S.C. 7704(b)(4)) is amended— (1) by striking “and” at the end of subparagraph (D); (2) by striking the period at the end of subparagraph (E) and inserting “; and”; and (3) by adding at the end the following: “(F) develop, in conjunction with the Federal Emergency Management Agency, the National Institute of Standards and Technology, and the United States Geological Survey, a comprehensive plan for earthquake engineering research to effectively use existing testing facilities and laboratories (in existence at the time of the development of the plan), upgrade facilities and equipment as needed, and integrate new, innovative testing approaches to the research infrastructure in a systematic manner.”.111 STAT. 1163 (b) Federal Emergency Management Agency.—Section 5(b)(1) of the Earthquake Hazards Reduction Act of 1977 (42 U.S.C. 7704(b)(1)) is amended— (1) by striking “and” at the end of subparagraph (D); (2) by striking the period at the end of subparagraph (E) and inserting and”; and (3) by adding at the end the following: “(F) work with the National Science Foundation, the National Institute of Standards and Technology, and the United States Geological Survey, to develop a comprehensive plan for earthquake engineering research to effectively use existing testing facilities and laboratories (existing at the time of the development of the plan), upgrade facilities and equipment as needed, and integrate new, innovative testing approaches to the research infrastructure in a systematic manner.”. (c) United States Geological Survey.—Section 5(b)(3) of the Earthquake Hazards Reduction Act of 1977 (42 U.S.C. 7704(b)(3)) is amended— (1) by striking “and” at the end of subparagraph (E); (2) by striking the period at the end of subparagraph (G) and inserting and”; and (3) by adding at the end the following: “(H) work with the National Science Foundation, the Federal Emergency Management Agency, and the National Institute of Standards and Technology to develop a comprehensive plan for earthquake engineering research to effectively use existing testing facilities and laboratories (in existence at the time of the development of the plan), upgrade facilities and equipment as needed, and integrate new, innovative testing approaches to the research infrastructure in a systematic manner.”. (d) National Institute of Standards and Technology.—Section 5(b)(5) of the Earthquake Hazards Reduction Act of 1977 (42 U.S.C. 7704(b)(5)) is amended— (1) by striking “and” at the end of subparagraph (B); (2) by striking the period at the end of subparagraph (C) and inserting “; and”; and (3) by adding at the end the following: “(D) work with the National Science Foundation, the Federal Emergency Management Agency, and the United States Geological Survey to develop a comprehensive plan for earthquake engineering research to effectively use existing testing facilities and laboratories (in existence at the time of the development of the plan), upgrade facilities and equipment as needed, and integrate new, innovative testing approaches to the research infrastructure in a systematic manner.”.111 STAT. 1164
SEC. 4. REPEALS. Sections 6 and 7 of the Earthquake Hazards Reduction Act of 1977 (42 U.S.C. 7705 and 7705a) are repealed.
Approved October 1, 1997.
LEGISLATIVE HISTORY—S. 910 (H.R. 2249): HOUSE REPORTS: No. 105–238, Pt. 1 (Comm. on Science) accompanying H.R. 2249. SENATE REPORTS: No. 105–59 (Comm. on Commerce, Science, and Transportation). CONGRESSIONAL RECORD, Vol. 143 (1997):

July 31, considered and passed Senate.

Sept. 16, considered and passed House.

 Public Law 105–48: To provide permanent authority for the administration of au pair programs. Public Law48 Public Law 105–48 111 Stat. 1165 1997-10-01 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1165 Public Law105–48 105th Congress
An Act To provide permanent authority for the administration of au pair programs.

Oct. 1, 1997

[S. 1211]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. PERMANENT AUTHORITY FOR AU PAIR PROGRAMS. Section 1(b) of the Act entitled “An Act to extend au pair programs”, approved December 23, 1995 (Public Law 104–72; 109 Stat. 776) is amended by striking “, through fiscal year 1997”.
Approved October 1, 1997.
LEGISLATIVE HISTORY—S. 1211: CONGRESSIONAL RECORD, Vol. 143 (1997):

Sept. 26, considered and passed Senate.

Sept. 29, considered and passed House.

 Public Law 105–49: To provide for the conveyance of a parcel of unused agricultural land in Dos Palos, California, to the Dos Palos Ag Boosters for use as a farm school. Public Law49 Public Law 105–49 111 Stat. 1166 1997-10-06 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1166 Public Law105–49 105th Congress
An Act To provide for the conveyance of a parcel of unused agricultural land in Dos Palos, California, to the Dos Palos Ag Boosters for use as a farm school.

Oct. 6, 1997

[H.R. 111]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. LAND CONVEYANCE, UNUSED AGRICULTURAL LAND, DOS PALOS, CALIFORNIA. (a) Conveyance.—In accordance with the provisions of this section, the Secretary of Agriculture shall convey to the Dos Palos Ag Boosters of Dos Palos, California, all right, title, and interest of the United States in and to a parcel of real property (including improvements thereon) held by the Secretary that consists of approximately 22 acres and is located at 18296 Elgin Avenue, Dos Palos, California, to be used as a farm school for the education and training of students and beginning farmers regarding farming. The conveyance shall be final with no future liability accruing to the Secretary of Agriculture. (b) Consideration.—As consideration for the conveyance under subsection (a), the transferee shall pay to the Secretary an amount equal to the fair market value of the parcel conveyed under subsection (a). (c) Alternative Transferee—At the request of the Dos Palos Ag Boosters, the Secretary may make the conveyance under subsection (a) to the Dos Palos School District. (d) Determination of Fair Market Value and Property Description.—The Secretary shall determine the fair market value of the parcel to be conveyed under subsection (a). The exact acreage and legal description of the parcel shall be determined by a survey satisfactory to the Secretary. The cost of any such survey shall be borne by the transferee. (e) Additional Terms and Conditions.—The Secretary may require such additional terms and conditions in connection with the conveyance under this section as the Secretary considers appropriate to protect the interests of the United States.
Approved October 6, 1997.
LEGISLATIVE HISTORY—H.R. 111: HOUSE REPORTS: No. 105–34 (Comm. on Agriculture). CONGRESSIONAL RECORD, Vol. 143 (1997):

Apr. 16, considered and passed House.

Sept. 23, considered and passed Senate.

 Public Law 105–50: To amend the Federal Property and Administrative Services Act of 1949 to authorize the transfer of surplus personal property to States for donation to nonprofit providers of necessaries to impoverished families and individuals, and to authorize the transfer of surplus real property to States, political subdivisions and instrumentalities of States, and nonprofit organizations for providing housing or housing assistance for low-income individuals or families. Public Law50 Public Law 105–50 111 Stat. 1167 1997-10-06 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1167 Public Law105–50 105th Congress
An Act To amend the Federal Property and Administrative Services Act of 1949 to authorize the transfer of surplus personal property to States for donation to nonprofit providers of necessaries to impoverished families and individuals, and to authorize the transfer of surplus real property to States, political subdivisions and instrumentalities of States, and nonprofit organizations for providing housing or housing assistance for low-income individuals or families.

Oct. 6, 1997

[H.R. 680]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. TRANSFER OF SURPLUS PERSONAL PROPERTY FOR DONATION TO PROVIDERS OF NECESSARIES TO IMPOVERISHED FAMILIES AND INDIVIDUALS. Section 203(j)(3)(B) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 484(j)(3)(B)) is amended by inserting after “homeless individuals” the following: “, providers of assistance to families or individuals whose annual incomes are below the poverty line (as that term is defined in section 673 of the Community Services Block Grant Act),”.
SEC. 2. TRANSFER OF SURPLUS REAL PROPERTY FOR PROVIDING HOUSING OR HOUSING ASSISTANCE FOR LOW-INCOME INDIVIDUALS OR FAMILIES. (a) In General.—Section 203(k) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 484(k)) is amended by adding at the end the following new paragraph: “(6)(A) Under such regulations as the Administrator may prescribe, the Administrator may, in the discretion of the Administrator, assign to the Secretary of Housing and Urban Development for disposal such surplus real property, including buildings, fixtures, and equipment situated thereon, as is recommended by the Secretary as being needed for providing housing or housing assistance for low-income individuals or families. “(B) Subject to the disapproval of the Administrator within 30 days after notice to the Administrator by the Secretary of Housing and Urban Development of a proposed transfer of property for the purpose of providing such housing or housing assistance, the Secretary, through such officers or employees of the Department of Housing and Urban Development as the Secretary may designate, may sell or lease such property for that purpose to any State, any political subdivision or instrumentality of a State, or any nonprofit organization that exists for the primary purpose of providing housing or housing assistance for low-income individuals or families. “(C) The Administrator shall disapprove a proposed transfer of property under this paragraph unless the Administrator 111 STAT. 1168determines that the property will be used for low-income housing opportunities through the construction, rehabilitation, or refurbishment of self-help housing, under terms that require that— “(i) any individual or family receiving housing or housing assistance constructed, rehabilitated, or refurbished through use of the property shall contribute a significant amount of labor toward the construction, rehabilitation, or refurbishment; and “(ii) dwellings constructed, rehabilitated, or refurbished through use of the property shall be quality dwellings that comply with local building and safety codes and standards and shall be available at prices below prevailing market prices. “(D)

Guidelines.

(i) The Administrator shall ensure that nonprofit organizations that are sold or leased property under subparagraph (B) shall develop and use guidelines to take into consideration any disability of an individual for the purposes of fulfilling any self-help requirement under subparagraph (C)(i). “(ii) For purposes of this subparagraph, the term ‘disability’ has the meaning given such term under section 3(2) of the Americans with Disabilities Act of 1990 (42 U.S.C. 12102(2)). “(E)(i) In fixing the sale or lease value of property to be disposed of under this paragraph, the Secretary of Housing and Urban Development shall take into consideration and discount the value with respect to any benefit which has accrued or may accrue to the United States from the use of such property by any such State, political subdivision, instrumentality, or nonprofit organization. “(ii) The amount of the discount under clause (i) shall be 75 percent of the market value of the property, except that the Secretary may discount by a greater percentage if the Secretary, in consultation with the Administrator, determines that a higher percentage is justified.”. (b) Conforming Amendments.—Section 203(k)(4) of such Act (40 U.S.C. 484(k)(4)) is amended— (1) in subparagraph (C), by striking “or” after the semicolon; (2) in subparagraph (D), by striking the period at the end and inserting “; or”; and (3) by inserting after subparagraph (D) the following:111 STAT. 1169 “(E) the Secretary of Housing and Urban Development, through such officers or employees of the Department of Housing and Urban Development as the Secretary may designate, in the case of property transferred under paragraph (6).”.
Approved October 6, 1997.
LEGISLATIVE HISTORY—H.R. 680: HOUSE REPORTS: No. 105–34 (Comm. on Agriculture). CONGRESSIONAL RECORD, Vol. 143 (1997):

Apr. 29, considered and passed House.

July 9, considered and passed Senate, amended.

Sept. 18, House concurred in Senate amendments.

 Public Law 105–51: To authorize the President to award a gold medal on behalf of the Congress to Ecumenical Patriarch Bartholomew in recognition of his outstanding and enduring contributions toward religious understanding and peace, and for other purposes. Public Law51 Public Law 105–51 111 Stat. 1170 1997-10-06 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1170 Public Law105–51 105th Congress
An Act To authorize the President to award a gold medal on behalf of the Congress to Ecumenical Patriarch Bartholomew in recognition of his outstanding and enduring contributions toward religious understanding and peace, and for other purposes.

Oct. 6, 1997

[H.R. 2248]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1.

31 USC 5111 note.

 FINDINGS. The Congress finds that— (1) Ecumenical Patriarch Bartholomew— (A) is the spiritual leader of nearly 300 million Orthodox Christians around the world and millions of Orthodox Christians in America; and (B) is recognized in the United States and abroad as a leader in the quest for world peace, respect for the Earth’s environment, and greater religious understanding; (2) the extraordinary efforts of Ecumenical Patriarch Bartholomew continue to bring people of all faiths closer together in America and around the world; (3) the courageous leadership of Ecumenical Patriarch Bartholomew for peace in the Balkans, Eastern Europe, the Middle East, the Eastern Mediterranean, and elsewhere inspires and encourages people of all faiths toward his dream of world peace in the new millennium; and (4) the outstanding accomplishments of Ecumenical Patriarch Bartholomew have been formally recognized and honored by numerous governmental, academic, and other institutions around the world.
SEC. 2.

31 USC 5111 note.

 CONGRESSIONAL GOLD MEDAL. (a) Presentation Authorized.—The President is authorized to present, on behalf of the Congress, a gold medal of appropriate design to Ecumenical Patriarch Bartholomew in recognition of his outstanding and enduring contributions to religious understanding and peace. (b) Design and Striking.—For the purpose of the presentation referred to in subsection (a), the Secretary of the Treasury (hereafter in this Act referred to as the “Secretary”) shall strike a gold medal with suitable emblems, devices, and inscriptions, to be determined by the Secretary.
SEC. 3.

31 USC 5111 note.

 DUPLICATE MEDALS. The Secretary may strike and sell duplicates in bronze of the gold medal struck pursuant to section 2 under such regulations 111 STAT. 1171as the Secretary may prescribe, and at a price sufficient to cover the costs thereof, including labor, materials, dies, use of machinery, overhead expenses, and the cost of the gold medal.
SEC. 4. NATIONAL MEDALS.

31 USC 5111 note.

 The medals struck pursuant to this Act are national medals for purposes of chapter 51 of title 31, United States Code.
SEC. 5. AUTHORIZATION OF APPROPRIATIONS; PROCEEDS OF SALE.

31 USC 5111 note.

 (a) Authorization of Appropriations.—There is hereby authorized to be charged against the Numismatic Public Enterprise Fund an amount not to exceed $30,000 to pay for the cost of the medal authorized by this Act. (b) Proceeds of Sale.—Amounts received from the sales of duplicate bronze medals under section 3 shall be deposited in the Numismatic Public Enterprise Fund.
Approved October 6, 1997.
LEGISLATIVE HISTORY—H.R. 2248: CONGRESSIONAL RECORD, Vol. 143 (1997):

Sept. 17, considered and passed House.

Sept. 24, considered and passed Senate.

 Public Law 105–52: To designate the Federal building located at 601 Fourth Street, NW., in the District of Columbia, as the “Federal Bureau of Investigation, Washington Field Office Memorial Building”, in honor of William H. Christian, Jr., Martha Dixon Martinez, Michael J. Miller, Anthony Palmisano, and Edwin R. Woodriffe. Public Law52 Public Law 105–52 111 Stat. 1172 1997-10-06 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1172 Public Law105–52 105th Congress
An Act To designate the Federal building located at 601 Fourth Street, NW., in the District of Columbia, as the “Federal Bureau of Investigation, Washington Field Office Memorial Building”, in honor of William H. Christian, Jr., Martha Dixon Martinez, Michael J. Miller, Anthony Palmisano, and Edwin R. Woodriffe.

Oct. 6, 1997

[H.R. 2443]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. PURPOSE. The purpose of this Act is to designate the Federal building referred to in section 2 in honor of William H. Christian, Jr., Martha Dixon Martinez, Michael J. Miller, Anthony Palmisano, and Edwin R. Woodriffe, who were slain in the line of duty.
SEC. 2. FEDERAL BUREAU OF INVESTIGATION, WASHINGTON FIELD OFFICE MEMORIAL BUILDING. (a) Designation.—The Federal building located at 601 Fourth Street, NW., in the District of Columbia, shall be known and designated as the “Federal Bureau of Investigation, Washington Field Office Memorial Building”. (b) References.—Any reference in a law, map, regulation, document, paper, or other record of the United States to the Federal building referred to in subsection (a) shall be deemed to be a reference to the “Federal Bureau of Investigation, Washington Field Office Memorial Building”.
Approved October 6, 1997.
LEGISLATIVE HISTORY—H.R. 2443: CONGRESSIONAL RECORD, Vol. 143 (1997):

Sept. 18, considered and passed House.

Sept. 24, considered and passed Senate.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):

Oct. 6, Presidential statement.

 Public Law 105–53: To provide for the authorization of appropriations in each fiscal year for arbitration in United States district courts, and for other purposes. Public Law53 Public Law 105–53 111 Stat. 1173 1997-10-06 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1173 Public Law105–53 105th Congress
An Act To provide for the authorization of appropriations in each fiscal year for arbitration in United States district courts, and for other purposes.

Oct. 6, 1997

[S. 996]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. ARBITRATION IN DISTRICT COURTS. Section 905 of the Judicial Improvements and Access to Justice Act (28 U.S.C. 651 note) is amended in the first sentence by striking “for each of the fiscal years 1994 through 1997” and inserting “for each fiscal year”.
SEC. 2. ENHANCEMENT OF JUDICIAL INFORMATION DISSEMINATION. Section 103(b)(2) of the Civil Justice Reform Act of 1990 (Public Law 101–650; 104 Stat. 5096; 28 U.S.C. 471 note) is amended— (1) by inserting “(A)” after “(2)”; (2) by striking “sections 471 through 478” and inserting “sections 472, 473, 474, 475, 477, and 478”; and (3) by adding at the end the following new subparagraph: “(B) The requirements set forth in section 476 of title 28, United States Code, as added by subsection (a), shall remain in effect permanently.”.
SEC. 3. EXTENSION OF CERTAIN TEMPORARY JUDGESHIPS. Section 203(c) of the Judicial Improvements Act of 1990 (28 U.S.C. 133 note) is amended— (1) by striking paragraph (1) and redesignating the succeeding paragraphs accordingly; and (2) by striking the last 3 sentences and inserting the following: “Except with respect to the western district of Michigan and the eastern district of Pennsylvania, the first vacancy in the office of district judge in each of the judicial districts named in this subsection, occurring 10 years or more after the confirmation date of the judge named to fill the temporary judgeship created by this subsection, shall not be filled. The first vacancy in the office of district judge in the western district of Michigan, occurring after December 1, 1995, shall not be filled. The first vacancy in the office of district judge in the eastern district of Pennsylvania, occurring 5 years or more after the confirmation date of the judge named to fill the temporary judgeship created for such district under this subsection, shall not be filled. For districts named in this subsection for which multiple judgeships are created by this Act, the last of those judgeships filled shall be the judgeships created under this section.”.111 STAT. 1174
SEC. 4. TRANSFER OF FEDERAL COURT JUDGESHIP. The table contained in section 133(a) of title 28, United States Code, is amended by amending the item relating to Louisiana to read as follows:
“Louisiana:
 “Eastern 12
 “Middle 3
 “Western 7”.
Approved October 6, 1997.
LEGISLATIVE HISTORY—S. 996 (H.R. 1581): HOUSE REPORTS: No. 105–143 accompanying H.R. 1581 (Comm. on the Judiciary). CONGRESSIONAL RECORD, Vol. 143 (1997):

July 31, considered and passed Senate.

Sept. 23, considered and passed House, amended.

Sept. 30, Senate concurred in House amendments.

 Public Law 105–54: To amend the Immigration and Nationality Act to extend the special immigrant religious worker program, to amend the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 to extend the deadline for designation of an effective date for paperwork changes in the employer sanctions program, and to require the Secretary of State to waive or reduce the fee for application and issuance of a nonimmigrant visa for aliens coming to the United States for certain charitable purposes. Public Law54 Public Law 105–54 111 Stat. 1175 1997-10-06 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1175 Public Law105–54 105th Congress
An Act To amend the Immigration and Nationality Act to extend the special immigrant religious worker program, to amend the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 to extend the deadline for designation of an effective date for paperwork changes in the employer sanctions program, and to require the Secretary of State to waive or reduce the fee for application and issuance of a nonimmigrant visa for aliens coming to the United States for certain charitable purposes.

Oct. 6, 1997

[S. 1198]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. 3-YEAR EXTENSION OF SPECIAL IMMIGRANT RELIGIOUS WORKER PROGRAM. (a) In General.—Section 101(a)(27)(C)(ii) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(27)(C)(ii)) is amended by striking “1997,” each place it appears and inserting “2000,”. (b) Effective Date.—The amendment made by subsection (a) shall take effect on the date of the enactment of this Act.
SEC. 2. WAIVER OF NONIMMIGRANT VISA FEES FOR CERTAIN CHARITABLE PURPOSES. (a) In General.—Section 281 of the Immigration and Nationality Act (8 U.S.C. 1351) is amended by adding at the end the following new sentence: “Subject to such criteria as the Secretary of State may prescribe, including the duration of stay of the alien and the financial burden upon the charitable organization, the Secretary of State shall waive or reduce the fee for application and issuance of a nonimmigrant visa for any alien coming to the United States primarily for, or in activities related to, a charitable purpose involving health or nursing care, the provision of food or housing, job training, or any other similar direct service or assistance to poor or otherwise needy individuals in the United States.”. (b) Effective Date.—The amendment made by subsection (a) shall take effect on the date of the enactment of this Act.
SEC. 3. 6-MONTH EXTENSION OF DEADLINE FOR DESIGNATION OF EFFECTIVE DATE FOR PAPERWORK CHANGES IN EMPLOYER SANCTIONS PROGRAM. (a) In General.—Section 412(e)(1) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (Public Law 104–208; 110 Stat. 3009–668) is amended by striking “12” and inserting “18”.111 STAT. 1176 (b) Effective Date.—The amendment made by subsection (a) shall take effect as if included in the enactment of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996.
Approved October 6, 1997.
LEGISLATIVE HISTORY—S. 1198: CONGRESSIONAL RECORD, Vol. 143 (1997):

Sept. 18, considered and passed Senate.

Sept. 29, considered in House.

Oct. 1, considered and passed House, amended. Senate concurred in House amendments.

 Public Law 105–55: Making appropriations for the Legislative Branch for the fiscal year ending September 30, 1998, and for other purposes. Public Law55 Public Law 105–55 111 Stat. 1177 1997-10-07 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1177 Public Law105–55 105th Congress
An Act Making appropriations for the Legislative Branch for the fiscal year ending September 30, 1998, and for other purposes.

Oct. 7, 1997

[H.R. 2209]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
That the

Legislative Branch Appropriations Act, 1998.

 following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the Legislative Branch for the fiscal year ending September 30, 1998, and for other purposes, namely:
<num value="I">TITLE I—</num><heading>CONGRESSIONAL OPERATIONS</heading><sidenote><p class="indent0 firstIndent0 fontsize8">Congressional Operations Appropriations Act, 1998.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s60a">2 USC 60a note</ref>.</p></sidenote> <appropriations level="major"> <heading>SENATE</heading> <appropriations level="intermediate"> <heading>expense allowances</heading> <content>For expense allowances of the Vice President, $10,000; the President pro tempore of the Senate, $10,000; Majority Leader of the Senate, $10,000; Minority Leader of the Senate, $10,000; Majority Whip of the Senate, $5,000; Minority Whip of the Senate, $5,000; and Chairmen of the Majority and Minority Conference Committees, $3,000 for each Chairman; in all, $56,000.</content> </appropriations> <appropriations level="intermediate"> <heading>representation allowances for the majority and minority leaders</heading> <content>For representation allowances of the Majority and Minority Leaders of the Senate, $15,000 for each such Leader; in all, $30,000.</content> </appropriations> <appropriations level="intermediate"> <heading>Salaries, Officers and Employees</heading> <chapeau>For compensation of officers, employees, and others as authorized by law, including agency contributions, $77,254,000, which shall be paid from this appropriation without regard to the below limitations, as follows:</chapeau> <appropriations level="small"> <heading>office of the vice president</heading> <content>For the Office of the Vice President, $1,612,000.</content> </appropriations> <appropriations level="small"> <heading>office of the president pro tempore</heading> <content>For the Office of the President pro tempore, $371,000.</content> </appropriations> <appropriations level="small"> <heading>offices of the majority and minority leaders</heading> <content>For Offices of the Majority and Minority Leaders, $2,388,000.<page identifier="/us/stat/111/1178">111 STAT. 1178</page></content> </appropriations> <appropriations level="small"> <heading>offices of the majority and minority whips</heading> <content>For Offices of the Majority and Minority Whips, $1,221,000.</content> </appropriations> <appropriations level="small"> <heading>conference committees</heading> <content>For the Conference of the Majority and the Conference of the Minority, at rates of compensation to be fixed by the Chairman of each such committee, $1,061,000 for each such committee; in all, $2,122,000.</content> </appropriations> <appropriations level="small"> <heading>offices of the secretaries of the conference of the majority and the conference of the minority</heading> <content>For Offices of the Secretaries of the Conference of the Majority and the Conference of the Minority, $409,000.</content> </appropriations> <appropriations level="small"> <heading>policy committees</heading> <content>For salaries of the Majority Policy Committee and the Minority Policy Committee, $1,077,500 for each such committee; in all, $2,155,000.</content> </appropriations> <appropriations level="small"> <heading>office of the chaplain</heading> <content>For Office of the Chaplain, $260,000.</content> </appropriations> <appropriations level="small"> <heading>office of the secretary</heading> <content>For Office of the Secretary, $13,306,000.</content> </appropriations> <appropriations level="small"> <heading>office of the sergeant at arms and doorkeeper</heading> <content>For Office of the Sergeant at Arms and Doorkeeper, $33,037,000.</content> </appropriations> <appropriations level="small"> <heading>offices of the secretaries for the majority and minority</heading> <content>For Offices of the Secretary for the Majority and the Secretary for the Minority, $1,165,000.</content> </appropriations> <appropriations level="small"> <heading>agency contributions and related expenses</heading> <content>For agency contributions for employee benefits, as authorized by law, and related expenses, $19,208,000.</content> </appropriations> <appropriations level="small"> <heading>office of the legislative counsel of the senate</heading> <content>For salaries and expenses of the Office of the Legislative Counsel of the Senate, $3,605,000.</content> </appropriations> <appropriations level="small"> <heading>office of senate legal counsel</heading> <content>For salaries and expenses of the Office of Senate Legal Counsel, $966,000.<page identifier="/us/stat/111/1179">111 STAT. 1179</page></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Expense Allowances of the Secretary of the Senate, Sergeant at Arms and Doorkeeper of the Senate, and Secretaries for the Majority and Minority of the Senate</heading> <content>For expense allowances of the Secretary of the Senate, $3,000; Sergeant at Arms and Doorkeeper of the Senate, $3,000; Secretary for the Majority of the Senate, $3,000; Secretary for the Minority of the Senate, $3,000; in all, $12,000.</content> </appropriations> <appropriations level="intermediate"> <heading>Contingent Expenses of the Senate</heading> <appropriations level="small"> <heading>inquiries and investigations</heading> <content>For expenses of inquiries and investigations ordered by the Senate, or conducted pursuant to section 134(a) of Public Law 601, Seventy-ninth Congress, as amended, section 112 of Public Law 96–304 and Senate Resolution 281, agreed to March 11, 1980, $75,600,000.</content> </appropriations> <appropriations level="small"> <heading>expenses of the united states senate caucus on international narcotics control</heading> <content>For expenses of the United States Senate Caucus on International Narcotics Control, $370,000.</content> </appropriations> <appropriations level="small"> <heading>secretary of the senate</heading> <content>For expenses of the Office of the Secretary of the Senate, $1,511,000.</content> </appropriations> <appropriations level="small"> <heading>sergeant at arms and doorkeeper of the senate</heading> <content>For expenses of the Office of the Sergeant at Arms and Doorkeeper of the Senate, $64,833,000, of which $7,000,000 shall remain available until September 30, 1999.</content> </appropriations> <appropriations level="small"> <heading>miscellaneous items</heading> <content>For miscellaneous items, $7,905,000.</content> </appropriations> <appropriations level="small"> <heading>senators’ official personnel and office expense account</heading> <content>For Senators’ Official Personnel and Office Expense Account, $228,600,000.</content> </appropriations> <appropriations level="intermediate"> <heading>stationery (revolving fund)</heading> <content>For stationery for the President of the Senate, $4,500, for officers of the Senate and the Conference of the Majority and Conference of the Minority of the Senate, $8,500; in all, $13,000.</content> </appropriations> <appropriations level="small"> <heading>official mail costs</heading> <content>For expenses necessary for official mail costs of the Senate, $300,000, to remain available until September 30, 1999.</content> </appropriations> <appropriations level="small"> <heading>administrative provisions</heading> <section> <num value="1"><inline class="smallCaps">Section</inline> 1.</num> <subsection class="inline"><num value="a">(a)</num> <content>For fiscal year 1998, and each fiscal year thereafter,<sidenote><p class="indent0 firstIndent0 fontsize8">Contracts.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s68e">2 USC 68e</ref>.</p></sidenote> the Secretary of the Senate is authorized to make advance <page identifier="/us/stat/111/1180">111 STAT. 1180</page>payments under a contract or other agreement to provide a service or deliver an article for the United States Government without regard to the provisions of section 3324 of title 31, United States Code.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote> <content>An advance payment authorized by subsection (a) shall be made in accordance with regulations issued by the Committee on Rules and Administration of the Senate.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <content>The authority granted by subsection (a) shall not take effect until regulations are issued pursuant to subsection (b).</content> </subsection> </section> <section> <num value="2"><inline class="smallCaps">Sec</inline>. 2.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s31">2 USC 31a–2c</ref>.</p></sidenote> <subsection class="inline"><num value="a">(a)</num> <content>Upon the written request of the Majority or Minority Whip of the Senate, the Secretary of the Senate shall transfer during any fiscal year, from the appropriations account appropriated under the headings “<inline class="smallCaps">Salaries, Officers and Employees</inline>” and “<inline class="smallCaps">offices of the majority and minority whips</inline>”, such amount as either whip shall specify to the appropriations account, within the contingent fund of the Senate, “<inline class="smallCaps">miscellaneous items</inline>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>The Majority and Minority Whips of the Senate are each authorized to incur such expenses as may be necessary or appropriate. Expenses incurred by either such whip shall be paid from the amount transferred pursuant to subsection (a) by such whip and upon vouchers approved by such whip.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <content>The Secretary of the Senate is authorized to advance such sums as may be necessary to defray expenses incurred in carrying out subsections (a) and (b).</content> </subsection> </section> <section> <num value="3"><inline class="smallCaps">Sec</inline>. 3.</num><sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> <subsection class="inline"><num value="a">(a)</num> <content>Effective in the case of any fiscal year which begins on or after October 1, 1997, clause (iii) of paragraph (3)(A) of section 506(b) of the Supplemental Appropriations Act, 1973 (2 U.S.C. 58(b)) is amended to read as follows: <quotedContent> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>subject to subparagraph (B), in case the Senator represents Alabama, $182,567, Alaska, $251,901, Arizona, $197,079, Arkansas, $168,282, California, $468,724, Colorado, $186,350, Connecticut, $160,903, Delaware, $127,198, Florida, $299,746, Georgia, $210,214, Hawaii, $279,512, Idaho, $163,335, Illinois, $266,248, Indiana, $194,770, Iowa, $170,565, Kansas, $168,177, Kentucky, $177,338, Louisiana, $185,647, Maine, $147,746, Maryland, $173,020, Massachusetts, $195,799, Michigan, $236,459, Minnesota, $187,702, Mississippi, $168,103, Missouri, $197,941, Montana, $161,725, Nebraska, $160,361, Nevada, $171,096, New Hampshire, $142,394, New Jersey, $206,260, New Mexico, $166,140, New York, $327,955, North Carolina, $210,946, North Dakota, $149,824, Ohio, $259,452, Oklahoma, $181,761, Oregon, $189,345, Pennsylvania, $266,148, Rhode Island, $138,582, South Carolina, $170,451, South Dakota, $151,450, Tennessee, $191,954, Texas, $348,681, Utah, $168,632, Vermont, $135,925, Virginia, $193,467, Washington, $214,694, West Virginia, $147,772, Wisconsin, $191,569, Wyoming, $152,438, plus”.</content></clause> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>Subsection (a) of the first section of Public Law 100–137 (2 U.S.C. 58c) is amended by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> <content>Effective on and after October 1, 1997, the Senators’ Account shall be available for the payment of franked mail expenses of Senators.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s58c–1">2 USC 58c–1</ref>.</p><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s58c–1">2 USC 58c–1 note</ref>.</p><p class="indent0 fontsize10"><ref href="/us/usc/t2/s58c">2 USC 58c note</ref></p></sidenote><paragraph class="inline"><num value="1">(1)</num> <content>Section 12 of Public Law 101–520 is repealed.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>The amendment made by paragraph (1) shall be effective on and after October 1, 1997.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <content>Nothing in this section affects the authority of the Committee on Rules and Administration of the Senate to prescribe <page identifier="/us/stat/111/1181">111 STAT. 1181</page>regulations relating to the frank by Senators and officers of the Senate.</content> </subsection> </section> <section> <num value="4"><inline class="smallCaps">Sec</inline>. 4.</num> <subsection class="inline"><num value="a">(a)</num> <chapeau>The aggregate amount authorized by Senate Resolution 54, agreed to February 13, 1997, is increased—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by $401,635 for the period March 1, 1997, through September 30, 1998, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by $994,150 for the period March 1, 1998, through February 28, 1999.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>This section is effective on and after October 1, 1997.<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote></content> </subsection> </section> <section> <num value="5"><inline class="smallCaps">Sec</inline>. 5.</num> <content class="inline">Effective on and after October 1, 1997, each of the<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/sUSC 61–1">2 USC 61–1</ref>.</p></sidenote> dollar amounts contained in the table under section 105(d)(1) of 2 the Legislative Branch Appropriations Act, 1968 (2 U.S.C. 611) shall be deemed to be the dollar amounts in that table on December 31, 1995, increased by 2 percent on January 1, 1996, and by 2.3 percent on January 1, 1997.</content> </section> <section> <num value="6"><inline class="smallCaps">Sec</inline>. 6.</num> <subsection class="inline"><num value="a">(a)</num> <chapeau>The aggregate amount authorized by Senate Resolution 54, agreed to February 13, 1997, is increased—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by $125,000 for the period March 1, 1997, through September 30, 1998; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by $175,000 for the period March 1, 1998, through February 28, 1999.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>Funds in the account, within the contingent fund of the<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s72d">2 USC 72d</ref>.</p></sidenote> Senate, available for the expenses of inquiries and investigations shall be available for franked mail expenses incurred by committees of the Senate the other expenses of which are paid from that account.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <content>This section is effective for fiscal years beginning on and<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s72d">2 USC 72d note</ref>.</p></sidenote> after October 1, 1997.</content> </subsection> </section> <section> <num value="7"><inline class="smallCaps">Sec</inline>. 7.</num> <content class="inline">Section 1101 of Public Law 85–58 (2 U.S.C. 46a–1) is amended by adding at the end the following: “<quotedText>Disbursements from the fund shall be made upon vouchers approved by the Secretary of the Senate, or his designee.</quotedText>”.</content> </section> </appropriations> </appropriations> </appropriations> <appropriations level="major"> <heading>HOUSE OF REPRESENTATIVES</heading> <appropriations level="intermediate"> <heading>Salaries and Expenses</heading> <chapeau>For salaries and expenses of the House of Representatives, $708,738,000, as follows:</chapeau> <appropriations level="small"> <heading>house leadership offices</heading> <content>For salaries and expenses, as authorized by law, $12,293,000, including: Office of the Speaker, $1,590,000, including $25,000 for official expenses of the Speaker; Office of the Majority Floor Leader, $1,626,000, including $10,000 for official expenses of the Majority Leader; Office of the Minority Floor Leader, $1,652,000, including $10,000 for official expenses of the Minority Leader; Office of the Majority Whip, including the Chief Deputy Majority Whip, $1,024,000, including $5,000 for official expenses of the Majority Whip; Office of the Minority Whip, including the Chief Deputy Minority Whip, $998,000, including $5,000 for official expenses of the Minority Whip; Speaker’s Office for Legislative Floor Activities, $397,000; Republican Steering Committee, $736,000; Republican Conference, $1,172,000; Democratic Steering and Policy Committee, $1,277,000; Democratic Caucus, $631,000; and nine minority employees, $1,190,000.<page identifier="/us/stat/111/1182">111 STAT. 1182</page></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Members’ Representational Allowances</heading> <subheading>Including Members’ Clerk Hire, Official Expenses of Members, and Official Mail</subheading> <content>For Members’ representational allowances, including Members’ clerk hire, official expenses, and official mail, $379,789,000.</content> </appropriations> <appropriations level="intermediate"> <heading>Committee Employees</heading> <subheading>Standing Committees, Special and Select</subheading> <content>For salaries and expenses of standing committees, special and select, authorized by House resolutions, $86,268,000: <proviso><i>Provided,</i> That such amount (together with any amounts appropriated for such salaries and expenses for fiscal year 1997) shall remain available for such salaries and expenses until December 31, 1998.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Committee on Appropriations</heading> <chapeau>For salaries and expenses of the Committee on Appropriations, $18,276,000, including studies and examinations of executive agencies and temporary personal services for such committee, to be expended in accordance with section 202(b) of the Legislative Reorganization Act of 1946 and to be available for reimbursement to agencies for services performed: <proviso><i>Provided,</i> That such amount (together with any amounts appropriated for such salaries and expenses for fiscal year 1997) shall remain available for such salaries and expenses until December 31, 1998.</proviso></chapeau> <appropriations level="small"> <heading>salaries, officers and employees</heading> <content>For compensation and expenses of officers and employees, as authorized by law, $84,356,000, including: for salaries and expenses of the Office of the Clerk, including not more than $3,500, of which not more than $2,500 is for the Family Room, for official representation and reception expenses, $16,804,000; for salaries and expenses of the Office of the Sergeant at Arms, including the position of Superintendent of Garages, and including not more than $750 for official representation and reception expenses, $3,564,000; for salaries and expenses of the Office of the Chief Administrative Officer, $50,727,000, including $27,247,000 for salaries, expenses and temporary personal services of House Information Resources, of which $23,210,000 is provided herein: <proviso><i>Provided,</i> That of the amount provided for House Information Resources, $8,253,000 shall be for net expenses of telecommunications:</proviso> <proviso><i>Provided further,</i> That House Information Resources is authorized to receive reimbursement from Members of the House of Representatives and other governmental entities for services provided and such reimbursement shall be deposited in the Treasury for credit to this account; for salaries and expenses of the Office of the Inspector General, $3,808,000, of which $1,000 shall be for the release of the Inspector General’s Report on Management and Financial Irregularities—Office of the Chief Administrative Office:</proviso> <proviso><i>Provided further,</i> That all names of persons making favorable or unfavorable statements in the report shall be expunged; for the Office of the Chaplain, $133,000; for salaries and expenses of the Office of the Parliamentarian, including the Parliamentarian and <page identifier="/us/stat/111/1183">111 STAT. 1183</page>$2,000 for preparing the Digest of Rules, $1,101,000; for salaries and expenses of the Office of the Law Revision Counsel of the House, $1,821,000; for salaries and expenses of the Office of the Legislative Counsel of the House, $4,827,000; for salaries and expenses of the Corrections Calendar Office, $791,000; and for other authorized employees, $780,000.</proviso></content> </appropriations> <appropriations level="small"> <heading>allowances and expenses</heading> <content>For allowances and expenses as authorized by House resolution or law, $127,756,000, including: supplies, materials, administrative costs and Federal tort claims, $2,225,000; official mail for committees, leadership offices, and administrative offices of the House, $500,000; Government contributions for health, retirement, Social Security, and other applicable employee benefits, $124,390,000; and miscellaneous items including purchase, exchange, maintenance, repair and operation of House motor vehicles, interparliamentary receptions, and gratuities to heirs of deceased employees of the House, $641,000.</content> </appropriations> <appropriations level="small"> <heading>child care center</heading> <content>For salaries and expenses of the House of Representatives Child Care Center, such amounts as are deposited in the account established by section 312(d)(1) of the Legislative Branch Appropriations Act, 1992 (40 U.S.C. 184g(d)(1)), subject to the level specified in the budget of the Center, as submitted to the Committee on Appropriations of the House of Representatives.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Administrative Provisions</heading> <section> <num value="101"><inline class="smallCaps">Sec</inline>. 101.</num> <content class="inline">The provisions of House Resolution 7, One Hundred<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s74d">2 USC 74d</ref>, 74d–1, 74d–2.</p></sidenote> Fifth Congress, agreed to January 7, 1997, establishing the Corrections Calendar Office, shall be the permanent law with respect thereto. The provisions of House Resolution 130, One Hundred Fifth Congress, agreed to April 24, 1997, providing a lump sum allowance for the Corrections Calendar Office, shall be the permanent law with respect thereto.</content> </section> <section> <num value="102"><inline class="smallCaps">Sec</inline>. 102.</num> <content class="inline">The funds and accounts specified in section 107(b)<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s95b">2 USC 95b note</ref>.</p></sidenote> of the Legislative Branch Appropriations Act. 1996 (2 U.S.C. 123b note) shall be treated as categories of allowances and expenses for purposes of section 101(a) of the Legislative Branch Appropriations Act, 1993 (2 U.S.C. 95b(a)).</content> </section> <section> <num value="103"><inline class="smallCaps">Sec</inline>. 103.</num> <subsection class="inline"><num value="a">(a)</num> <chapeau>Section 109(a) of the Legislative Branch Appropriations Act, 1996 (2 U.S.C. 60o(a)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in the matter preceding paragraph (1), by striking “<quotedText>who is separated from employment,</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in the matter preceding paragraph (1), by striking “<quotedText>employee</quotedText>” the second place it appears and inserting “<quotedText>employee or for any other purpose</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>in paragraph (1)(B), by striking “<quotedText>the amount</quotedText>” and inserting “<quotedText>in the case of a lump sum payment for the accrued annual leave of the employee, the amount</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>The amendments made by subsection (a) shall apply to<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s60o">2 USC 60<i>o</i> note</ref>.</p></sidenote> fiscal years beginning on or after October 1, 1997.</content> </subsection> </section> <section> <num value="104"><inline class="smallCaps">Sec</inline>. 104.</num> <subsection class="inline"><num value="a">(a)</num> <content>Section 104(c)(2) of the House of Representatives Administrative Reform Technical Corrections Act (2 U.S.C. 92(c)(2)) is amended by striking “<quotedText>in the District of Columbia</quotedText>”.<page identifier="/us/stat/111/1184">111 STAT. 1184</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s92">2 USC 92 note</ref>.</p></sidenote> <content>The amendment made by subsection (a) shall apply with respect to fiscal years beginning on or after October 1, 1997.</content> </subsection> </section> <section> <num value="105"><inline class="smallCaps">Sec</inline>. 105.</num> <subsection class="inline"><num value="a">(a)</num> <content>Section 204(11)(A) of the House of Representatives <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s72a">2 USC 72a</ref>.</p></sidenote>Administrative Reform Technical Corrections Act (110 Stat. 1731) is amended by striking out “through ‘respective Houses’ and” and inserting in lieu thereof the following: “through ‘respective Houses’ the second place it appears and”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s72a">2 USC 72a note</ref>.</p></sidenote> <content>The amendment made by subsection (a) shall take effect as of August 20, 1996.</content> </subsection> </section> <section> <num value="106"><inline class="smallCaps">Sec</inline>. 106.</num> <chapeau class="inline">Section 104(a) of the Legislative Branch Appropriations Act, 1987 (as incorporated by reference in section 101(j) of Public Law 99–500 and Public Law 99–591) (2 U.S.C. 117e) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in the second sentence of paragraph (2), by striking “<quotedText>A donation</quotedText>” and inserting “<quotedText>Except as provided in paragraph (3), a donation</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by redesignating paragraphs (3) and (4) as paragraphs (4) and (5); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by inserting after paragraph (2) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num><subparagraph class="inline"><num value="A">(A)</num> <content>In the case of computer-related equipment, during fiscal year 1998 the Chief Administrative Officer may donate directly the equipment to a public elementary or secondary school of the District of Columbia without regard to whether the donation meets the requirements of the second sentence of paragraph (2), except that the total number of workstations donated as a result of this paragraph may not exceed 1,000.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B)</num> <chapeau>In this paragraph—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the term ‘computer-related equipment’ includes desktops, laptops, printers, file servers, and peripherals which are appropriate for use in public school education;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the terms ‘public elementary school’ and ‘public secondary school’ have the meaning given such terms in section 14101 of the Elementary and Secondary Education Act of 1965; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>the term ‘workstation’ includes desktops and peripherals, file servers and peripherals, laptops and peripherals, printers and peripherals, and workstations and peripherals.</content></clause> </subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">“(C)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote> <content>The Committee on House Oversight shall have authority to issue regulations to carry out this paragraph.”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> </section> <section> <num value="107"><inline class="smallCaps">Sec</inline>. 107.</num> <content class="inline">Title 5, United States Code, is amended by striking “<quotedText>the Speaker of the House of Representatives</quotedText>” each place it appears in sections 5532(i)(2)(B), 5532(i)(3), 8344(k)(2)(B), 8344(k)(3), 8468(h)(2)(B), and 8468(h)(3) and inserting “<quotedText>the Committee on House Oversight of the House of Representatives</quotedText>”.</content> </section> <section> <num value="108"><inline class="smallCaps">Sec</inline>. 108.</num><sidenote><p class="indent0 firstIndent0 fontsize8">Contracts.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s95c">2 USC 95c</ref>.</p></sidenote> <subsection class="inline"><num value="a">(a)</num> <content>For fiscal year 1998 and each succeeding fiscal year, the Chief Administrative Officer of the House of Representatives is authorized to make advance payments under a contract or other agreement to provide a service or deliver an article for the United States Government without regard to the provisions of section 3324 of title 31, United States Code.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote> <content>An advance payment authorized by subsection (a) shall be made in accordance with regulations issued by the Committee on House Oversight of the House of Representatives.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <content>The authority granted by subsection (a) shall not take effect until regulations are issued pursuant to subsection (b).</content> </subsection> </section> <section> <num value="109"><inline class="smallCaps">Sec</inline>. 109.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s95d">2 USC 95d</ref>.</p></sidenote> <subsection class="inline"><num value="a">(a)</num> <content>There is hereby established an account in the House of Representatives for purposes of making payments of the <page identifier="/us/stat/111/1185">111 STAT. 1185</page>House of Representatives to the Employees’ Compensation Fund under section 8147 of title 5, United States Code.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>Notwithstanding any other provision of law, payments may be made from the account established under subsection (a) at any time after the date of the enactment of this Act without regard to the fiscal year for which the obligation to make such payments is incurred.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <content>The account established under subsection (a) shall be treated as a category of allowances and expenses for purposes of section 101(a) of the Legislative Branch Appropriations Act, 1993 (2 U.S.C. 95b(a)).</content> </subsection> </section> </appropriations> </appropriations> <appropriations level="major"> <heading>JOINT ITEMS</heading> <chapeau>For Joint Committees, as follows:</chapeau> <appropriations level="intermediate"> <heading>Joint Economic Committee</heading> <content>For salaries and expenses of the Joint Economic Committee, $2,750,000, to be disbursed by the Secretary of the Senate.</content> </appropriations> <appropriations level="intermediate"> <heading>Joint Committee on Printing</heading> <content>For salaries and expenses of the Joint Committee on Printing, $804,000, to be disbursed by the Secretary of the Senate.</content> </appropriations> <appropriations level="intermediate"> <heading>Joint Committee on Taxation</heading> <content><p class="indent0 fontsize10">For salaries and expenses of the Joint Committee on Taxation, $5,815,500, to be disbursed by the Chief Administrative Officer of the House.</p> <p class="indent0 fontsize10">For other joint items, as follows:</p> </content></appropriations> <appropriations level="intermediate"> <heading>Office of the Attending Physician</heading> <content>For medical supplies, equipment, and contingent expenses of the emergency rooms, find for the Attending Physician and his assistants, including: (1) an allowance of $1,500 per month to the Attending Physician; (2) an allowance of $500 per month each to two medical officers while on duty in the Office of the Attending Physician; (3) an allowance of $500 per month to one assistant and $400 per month each to not to exceed nine assistants on the basis heretofore provided for such assistants; and (4) $893,000 for reimbursement to the Department of the Navy for expenses incurred for staff and equipment assigned to the Office of the Attending Physician, which shall be advanced and credited to the applicable appropriation or appropriations from which such salaries, allowances, and other expenses are payable and shall be available for all the purposes thereof, $1,266,000, to be disbursed by the Chief Administrative Officer of the House.</content> </appropriations> <appropriations level="intermediate"> <heading>Capitol Police Board</heading> <subheading>Capitol Police</subheading> <appropriations level="small"> <heading>salaries</heading> <content>For the Capitol Police Board for salaries of officers, members, and employees of the Capitol Police, including overtime, hazardous <page identifier="/us/stat/111/1186">111 STAT. 1186</page>duty pay differential, clothing allowance of not more than $600 each for members required to wear civilian attire, and Government contributions for health, retirement, Social Security, and other applicable employee benefits, $70,955,000, of which $34,118,000 is provided to the Sergeant at Arms of the House of Representatives, to be disbursed by the Chief Administrative Officer of the House, and $36,837,000 is provided to the Sergeant at Arms and Doorkeeper of the Senate, to be disbursed by the Secretary of the Senate: <proviso><i>Provided,</i> That, of the amounts appropriated under this heading, such amounts as may be necessary may be transferred between the Sergeant at Arms of the House of Representatives and the Sergeant at Arms and Doorkeeper of the Senate, upon approval of the Committee on Appropriations of the House of Representatives and the Committee on Appropriations of the Senate.</proviso></content> </appropriations> <appropriations level="small"> <heading>general expenses</heading> <content>For the Capitol Police Board for necessary expenses of the Capitol Police, including motor vehicles, communications and other equipment, security equipment and installation, uniforms, weapons, supplies, materials, training, medical services, forensic services, stenographic services, personal and professional services, the employee assistance program, not more than $2,000 for the awards program, postage, telephone service, travel advances, relocation of instructor and liaison personnel for the Federal Law Enforcement Training Center, and $85 per month for extra services performed for the Capitol Police Board by an employee of the Sergeant at Arms of the Senate or the House of Representatives designated by the Chairman of the Board, $3,099,000, to be disbursed by the Chief Administrative Officer of the House of Representatives: <proviso><i>Provided,</i> That, notwithstanding any other provision of law, the cost of basic training for the Capitol Police at the Federal Law Enforcement Training Center for fiscal year 1998 shall be paid by the Secretary of the Treasury from funds available to the Department of the Treasury.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Administrative Provisions</heading> <section> <num value="110"><inline class="smallCaps">Sec</inline>. 110.</num> <chapeau class="inline">Amounts appropriated for fiscal year 1998 for the Capitol Police Board for the Capitol Police may be transferred between the headings “salaries” and “general expenses” upon the approval of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>the Committee on Appropriations of the House of Representatives, in the case of amounts transferred from the appropriation provided to the Sergeant at Arms of the House of Representatives under the heading “<inline class="smallCaps">salaries</inline>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>the Committee on Appropriations of the Senate, in the case of amounts transferred from the appropriation provided to the Sergeant at Arms and Doorkeeper of the Senate under the heading “<inline class="smallCaps">salaries</inline>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>the Committees on Appropriations of the Senate and the House of Representatives, in the case of other transfers.</content></paragraph> </section> <section> <num value="111"><inline class="smallCaps">Sec</inline>. 111.</num><sidenote><p class="indent0 firstIndent0 fontsize8">Pay and leave.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t40/s207b">40 USC 207b</ref>.</p></sidenote> <subsection class="inline"><num value="a">(a)</num><paragraph class="inline"><num value="1">(1)</num> <content>The Capitol Police Board shall establish and maintain unified schedules of rates of basic pay for members and civilian employees of the Capitol Police which shall apply to both members and employees whose appointing authority is an officer of the Senate and members and employees whose appointing authority is an officer of the House of Representatives.<page identifier="/us/stat/111/1187">111 STAT. 1187</page></content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <content>The Capitol Police Board may, from time to time, adjust any schedule established under paragraph (1) to the extent that the Board determines appropriate to reflect changes in the cost of living and to maintain pay comparability.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3)</num> <content>A schedule established or revised under paragraph (1) or</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <content>shall take effect only upon approval by the Committee on House Oversight of the House of Representatives and the Committee on Rules and Administration of the Senate.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="4">(4)</num> <content>A schedule approved under paragraph (3) shall have the force and effect of law.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><paragraph class="inline"><num value="1">(1)</num> <chapeau>The Capitol Police Board shall prescribe, by regulation,<sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote> a unified leave system for members and civilian employees of the Capitol Police which shall apply to both members and employees whose appointing authority is an officer of the Senate and members and employees whose appointing authority is an officer of the House of Representatives. The leave system shall include provisions for—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A)</num> <content>annual leave, based on years of service;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B)</num> <content>sick leave;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C)</num> <content>administrative leave;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="D">(D)</num> <content>leave under the Family and Medical Leave Act of 1993 (29 U.S.C. 2601 et seq.);</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="E">(E)</num> <content>leave without pay and leave with reduced pay, including provisions relating to contributions for benefits for any period of such leave;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="F">(F)</num> <content>approval of all leave by the Chief or the designee of the Chief;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="G">(G)</num> <content>the order in which categories of leave shall be used;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="H">(H)</num> <content>use, accrual, and carryover rules and limitations, including rules and limitations for any period of active duty in the Armed Forces;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="I">(I)</num> <content>advance of annual leave or sick leave after a member or civilian employee has used all such accrued leave;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="J">(J)</num> <content>buy back of annual leave or sick leave used during an extended recovery period in the case of an injury in the performance of duty;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="K">(K)</num> <content>the use of accrued leave before termination of the employment as a member or civilian employee of the Capitol Police, with provision for lump sum payment for unused annual leave; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="L">(L)</num> <content>a leave-sharing program.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <content>The leave system under this section may not provide for the accrual of either annual or sick leave for any period of leave without pay or leave with reduced pay.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3)</num> <content>All provisions of the leave system established under this subsection shall be subject to the approval of the Committee on House Oversight of the House of Representatives and the Committee on Rules and Administration of the Senate. All regulations approved under this subsection shall have the force and effect of law.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><paragraph class="inline"><num value="1">(1)</num> <content>Upon the approval of the Capitol Police Board, a member or civilian employee of the Capitol Police who is separated from service may be paid a lump sum payment for the accrued annual leave of the member or civilian employee.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <chapeau>The lump sum payment under paragraph (1)—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A)</num> <content>shall equal the pay the member or civilian employee would have received had such member or employee remained <page identifier="/us/stat/111/1188">111 STAT. 1188</page>in the service until the expiration of the period of annual leave;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B)</num> <content>shall be paid from amounts appropriated to the Capitol Police;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C)</num> <content>shall be based on the rate of basic pay in effect with respect to the member or civilian employee on the last day of service of the member or civilian employee;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="D">(D)</num> <content>shall not be calculated on the basis of extending the period of leave described under subparagraph (A) by any holiday occurring after the date of separation from service;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="E">(E)</num> <content>shall be considered pay for taxation purposes only; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="F">(F)</num> <content>shall be paid only after the Chairman of the Capitol Police Board certifies the applicable period of leave to the Secretary of the Senate or the Chief Administrative Officer of the House of Representatives, as appropriate.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3)</num> <chapeau>A member or civilian employee of the Capitol Police who enters active duty in the Armed Forces may—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A)</num> <content>receive a lump sum payment for accrued annual leave in accordance with this subsection, in addition to any pay or allowance payable from the Armed Forces; or</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B)</num> <content>elect to have the leave remain to the credit of such member or civilian employee until such member or civilian employee returns from active duty.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="4">(4)</num> <content>The Capitol Police Board may prescribe regulations to carry out this subsection. No lump sum payment may be paid under this subsection until such regulations are approved by the Committee on Rules and Administration of the Senate and the Committee on House Oversight of the House of Representatives. All regulations approved under this subsection shall have the force and effect of law.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <content>Nothing in this section shall be construed to affect the appointing authority of any officer of the Senate or the House of Representatives.</content> </subsection> </section> </appropriations> <appropriations level="intermediate"> <heading>Capitol Guide Service and Special Services Office</heading> <content>For salaries and expenses of the Capitol Guide Service and Special Services Office, $1,991,000, to be disbursed by the Secretary of the Senate: <proviso><i>Provided,</i> That no part of such amount may be used to employ more than forty individuals:</proviso> <proviso><i>Provided further,</i> That the Capitol Guide Board is authorized, during emergencies, to employ not more than two additional individuals for not more than 120 days each, and not more than ten additional individuals for not more than six months each, for the Capitol Guide Service.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Statements of Appropriations</heading> <content>For the preparation, under the direction of the Committees on Appropriations of the Senate and the House of Representatives, of the statements for the first session of the One Hundred Fifth Congress, showing appropriations made, indefinite appropriations, and contracts authorized, together with a chronological history of the regular appropriations bills as required by law, $30,000, to be paid to the persons designated by the chairmen of such committees to supervise the work.<page identifier="/us/stat/111/1189">111 STAT. 1189</page></content> </appropriations> </appropriations> <appropriations level="major"> <heading>OFFICE OF COMPLIANCE</heading> <appropriations level="intermediate"> <heading>Salaries and Expenses</heading> <content>For salaries and expenses of the Office of Compliance, as authorized by section 305 of the Congressional Accountability Act of 1995 (2 U.S.C. 1385), $2,479,000.</content> </appropriations> </appropriations> <appropriations level="major"> <heading>CONGRESSIONAL BUDGET OFFICE</heading> <appropriations level="intermediate"> <heading>Salaries and Expenses</heading> <content>For salaries and expenses necessary to carry out the provisions of the Congressional Budget Act of 1974 (Public Law 93–344), including not more than $2,500 to be expended on the certification of the Director of the Congressional Budget Office in connection with official representation and reception expenses, $24,797,000: <proviso><i>Provided,</i> That no part of such amount may be used for the purchase or hire of a passenger motor vehicle.</proviso></content> </appropriations> </appropriations> <appropriations level="major"> <heading>ARCHITECT OF THE CAPITOL</heading> <appropriations level="intermediate"> <heading>Capitol Buildings and Grounds</heading> <appropriations level="small"> <heading>capitol buildings</heading> <subheading>salaries and expenses</subheading> <content>For salaries for the Architect of the Capitol, the Assistant Architect of the Capitol, and other personal services, at rates of pay provided by law; for surveys and studies in connection with activities under the care of the Architect of the Capitol; for all necessary expenses for the maintenance, care and operation of the Capitol and electrical substations of the Senate and House office buildings under the jurisdiction of the Architect of the Capitol, including furnishings and office equipment, including not more than $1,000 for official reception and representation expenses, to be expended as the Architect of the Capitol may approve; for purchase or exchange, maintenance and operation of a passenger motor vehicle; and not to exceed $20,000 for attendance, when specifically authorized by the Architect of the Capitol, at meetings or conventions in connection with subjects related to work under the Architect of the Capitol, $36,977,000, of which $7,500,000 shall remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>capitol grounds</heading> <content>For all necessary expenses for care and improvement of grounds surrounding the Capitol, the Senate and House office buildings, and the Capitol Power Plant, $5,116,000, of which $745,000 shall remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>senate office buildings</heading> <content>For all necessary expenses for maintenance, care and operation of Senate office buildings; and furniture and furnishings to be expended under the control and supervision of the Architect of the Capitol, $52,021,000, of which $13,200,000 shall remain available until expended: <proviso><i>Provided,</i> That appropriations under this<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 fontsize10"><ref href="/us/usc/t40/s174j–10">40 USC 174j–10</ref>.</p></sidenote> <page identifier="/us/stat/111/1190">111 STAT. 1190</page>heading for management personnel and miscellaneous restaurant expenses hereafter shall be transferred at the beginning of each fiscal year to the special deposit account in the United States Treasury established under Public Law 87–82, approved July 6, 1961, as amended (40 U.S.C. 174j–4), and effective October 1, 1997, all management personnel of the Senate Restaurant facilities shall be paid from the special deposit account. Management personnel transferred hereunder shall be paid at the same rates of pay applicable immediately prior to the date of transfer, and annual and sick leave balances shall be credited to leave accounts of such personnel in the Senate Restaurants.</proviso></content> </appropriations> <appropriations level="small"> <heading>house office buildings</heading> <content>For all necessary expenses for the maintenance, care and operation of the House office buildings, $36,610,000, of which $8,082,000 shall remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>capitol power plant</heading> <content>For all necessary expenses for the maintenance, care and operation of the Capitol Power Plant; lighting, heating, power (including the purchase of electrical energy) and water and sewer services for the Capitol, Senate and House office buildings, Library of Congress buildings, and the grounds about the same, Botanic Garden, Senate garage, and air conditioning refrigeration not supplied from plants in any of such buildings; heating the Government Printing Office and Washington City Post Office, and heating and chilled water for air conditioning for the Supreme Court Building, the Union Station complex, the Thurgood Marshall Federal Judiciary Building and the Folger Shakespeare Library, expenses for which shall be advanced or reimbursed upon request of the Architect of the Capitol and amounts so received shall be deposited into the Treasury to the credit of this appropriation, $33,932,000, of which $1,650,000 shall remain available until expended: <proviso><i>Provided,</i> That not more than $4,000,000 of the funds credited or to be reimbursed to this appropriation as herein provided shall be available for obligation during fiscal year 1998.</proviso></content> </appropriations> </appropriations> </appropriations> <appropriations level="major"> <heading>LIBRARY OF CONGRESS</heading> <appropriations level="intermediate"> <heading>Congressional Research Service</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses to carry out the provisions of section 203 of the Legislative Reorganization Act of 1946 (2 U.S.C. 166) and to revise and extend the Annotated Constitution of the United States of America, $64,603,000: <proviso><i>Provided,</i> That no part of such amount may be used to pay any salary or expense in connection with any publication, or preparation of material therefor (except the Digest of Public General Bills), to be issued by the Library of Congress unless such publication has obtained prior approval of either the Committee on House Oversight of the House of Representatives or the Committee on Rules and Administration <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s166">2 USC 166 note</ref>.</p></sidenote>of the Senate:</proviso> <i>Provided further,</i> That, notwithstanding any other provision of law, the compensation of the Director of the Congressional Research Service, Library of Congress, shall be at an annual rate which is equal to the annual rate of basic pay for positions <page identifier="/us/stat/111/1191">111 STAT. 1191</page>at level IV of the Executive Schedule under section 5315 of title 5, United States Code.</content> </appropriations> </appropriations> </appropriations> <appropriations level="major"> <heading>GOVERNMENT PRINTING OFFICE</heading> <appropriations level="intermediate"> <heading>Congressional Printing and Binding</heading> <subheading>(including transfer of funds)</subheading> <content><p class="indent0 fontsize10">For authorized printing and binding for the Congress and the distribution of Congressional information in any format; printing and binding for the Architect of the Capitol; expenses necessary for preparing the semimonthly and session index to the Congressional Record, as authorized by law (44 U.S.C. 902); printing and binding of Government publications authorized by law to be distributed to Members of Congress; and printing, binding, and distribution of Government publications authorized by law to be distributed without charge to the recipient, $81,669,000, of which $11,017,000 shall be derived by transfer from the Government Printing Office revolving fund under section 309 of title 44, United States Code: <proviso><i>Provided,</i> That this appropriation shall not be available for paper copies of the permanent edition of the Congressional Record for individual Representatives, Resident Commissioners or Delegates authorized under 44 U.S.C. 906:</proviso> <proviso><i>Provided further,</i> That this appropriation shall be available for the payment of obligations incurred under the appropriations for similar purposes for preceding fiscal years.</proviso></p> <p class="indent0 fontsize10">This title may be cited as the “Congressional Operations Appropriations Act, 1998”.</p> </content></appropriations> </appropriations> <num value="II">TITLE II—</num><heading>OTHER AGENCIES</heading> <appropriations level="major"> <heading>BOTANIC GARDEN</heading> <appropriations level="intermediate"> <heading>Salaries and Expenses</heading> <content>For all necessary expenses for the maintenance, care and operation of the Botanic Garden and the nurseries, buildings, grounds, and collections; and purchase and exchange, maintenance, repair, and operation of a passenger motor vehicle; all under the direction of the Joint Committee on the Library, $3,016,000.</content> </appropriations> </appropriations> <appropriations level="major"> <heading>LIBRARY OF CONGRESS</heading> <appropriations level="intermediate"> <heading>Salaries and Expenses</heading> <content>For necessary expenses of the Library of Congress not otherwise provided for, including development and maintenance of the Union Catalogs; custody and custodial care of the Library buildings; special clothing; cleaning, laundering and repair of uniforms; preservation of motion pictures in the custody of the Library; operation and maintenance of the American Folklife Center in the Library; preparation and distribution of catalog records and other publications of the Library; hire or purchase of one passenger motor vehicle; and expenses of the Library of Congress Trust Fund Board not properly chargeable to the income of any trust fund held by the Board, $227,016,000, of which not more than $7,869,000 shall be derived from collections credited to this appropriation during <page identifier="/us/stat/111/1192">111 STAT. 1192</page>fiscal year 1998, and shall remain available until expended, under the Act of June 28, 1902 (chapter 1301; 32 Stat. 480; 2 U.S.C. 150): <proviso><i>Provided,</i> That the Library of Congress may not obligate or expend any funds derived from collections under the Act of June 28, 1902, in excess of the amount authorized for obligation or expenditure in appropriations Acts: <i>Provided further,</i> That the total amount available for obligation shall be reduced by the amount by which collections are less than the $7,869,000:</proviso> <proviso><i>Provided further,</i> That of the total amount appropriated, $9,619,000 is to remain available until expended for acquisition of books, periodicals, newspapers, and all other materials including subscriptions for bibliographic services for the Library, including $40,000 to be available solely for the purchase, when specifically approved by the Librarian, of special and unique materials for additions to the collections:</proviso> <proviso><i>Provided further,</i> That of the total amount appropriated, $5,584,000 is to remain available until expended for the acquisition and partial support for implementation of an integrated library system (ILS).</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Copyright Office</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Copyright Office, including publication of the decisions of the United States courts involving copyrights, $34,361,000, of which not more than $17,340,000 shall be derived from collections credited to this appropriation during fiscal year 1998 under 17 U.S.C. 708(d), and not more than $5,086,000 shall be derived from collections during fiscal year 1998 under 17 U.S.C. 111(d)(2), 119(b)(2), 802(h), and 1005: <proviso><i>Provided,</i> That the total amount available for obligation shall be reduced by the amount by which collections are less than $22,426,000:</proviso> <proviso><i>Provided further,</i> That not more than $100,000 of the amount appropriated is available for the maintenance of an “International Copyright Institute” in the Copyright Office of the Library of Congress for the purpose of training nationals of developing countries in intellectual property laws and policies:</proviso> <proviso><i>Provided further,</i> That not more than $2,250 may be expended, on the certification of the Librarian of Congress, in connection with official representation and reception expenses for activities of the International Copyright Institute.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Books for the Blind and Physically Handicapped</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For salaries and expenses to carry out the Act of March 3, 1931 (chapter 400; 46 Stat. 1487; 2 U.S.C. 135a), $46,561,000, of which $12,944,000 shall remain available until expended.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Furniture and Furnishings</heading> <content>For necessary expenses for the purchase, installation, and repair of furniture, furnishings, office and library equipment, $4,178,000.<page identifier="/us/stat/111/1193">111 STAT. 1193</page></content> </appropriations> <appropriations level="intermediate"> <heading>Administrative Provisions</heading> <section> <num value="201"><inline class="smallCaps">Sec</inline>. 201.</num> <content class="inline">Appropriations in this Act available to the Library of Congress shall be available, in an amount of not more than $194,290, of which $58,100 is for the Congressional Research Service, when specifically authorized by the Librarian, for attendance at meetings concerned with the function or activity for which the appropriation is made.</content> </section> <section> <num value="202"><inline class="smallCaps">Sec</inline>. 202.</num> <subsection class="inline"><num value="a">(a)</num> <chapeau>No part of the funds appropriated in this Act shall be used by the Library of Congress to administer any flexible or compressed work schedule which—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>applies to any manager or supervisor in a position the grade or level of which is equal to or higher than GS–15; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>grants such manager or supervisor the right to not be at work for all or a portion of a workday because of time worked by the manager or supervisor on another workday.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>For purposes of this section, the term “manager or supervisor” means any management official or supervisor, as such terms are defined in section 7103(a)(10) and (11) of title 5, United States Code.</content> </subsection> </section> <section> <num value="203"><inline class="smallCaps">Sec</inline>. 203.</num> <chapeau class="inline">Appropriated funds received by the Library of Congress from other Federal agencies to cover general and administrative overhead costs generated by performing reimbursable work for other agencies under the authority of 31 U.S.C. 1535 and 1536 shall not be used to employ more than 65 employees and may be expended or obligated—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in the case of a reimbursement, only to such extent or in such amounts as are provided in appropriations Acts; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>in the case of an advance payment, only—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>to pay for such general or administrative overhead costs as are attributable to the work performed for such agency; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>to such extent or in such amounts as are provided in appropriations Acts, with respect to any purpose not allowable under subparagraph (A).</content></subparagraph> </paragraph> </section> <section> <num value="204"><inline class="smallCaps">Sec</inline>. 204.</num> <content class="inline">Of the amounts appropriated to the Library of Congress in this Act, not more than $5,000 may be expended, on the certification of the Librarian of Congress, in connection with official representation and reception expenses for the incentive awards program.</content> </section> <section> <num value="205"><inline class="smallCaps">Sec</inline>. 205.</num> <content class="inline">Of the amount appropriated to the Library of Congress in this Act, not more than $12,000 may be expended, on the certification of the Librarian of Congress, in connection with official representation and reception expenses for the Overseas Field Offices.</content> </section> <section> <num value="206"><inline class="smallCaps">Sec</inline>. 206.</num> <subsection class="inline"><num value="a">(a)</num> <content>For fiscal year 1998, the obligational authority of the Library of Congress for the activities described in subsection (b) may not exceed $100,490,000.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>The activities referred to in subsection (a) are reimbursable and revolving fund activities that are funded from sources other than appropriations to the Library in appropriations Acts for the legislative branch.</content> </subsection> </section> <section> <num value="207"><inline class="smallCaps">Sec</inline>. 207.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Establishment</inline>.—</heading><content>Effective October 1, 1997, there<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s182">2 USC 182</ref>.</p></sidenote> is established in the Treasury of the United States a revolving <page identifier="/us/stat/111/1194">111 STAT. 1194</page>fund to be known as the Cooperative Acquisitions Program Revolving Fund (in this section referred to as the “revolving fund”). Moneys in the revolving fund shall be available to the Librarian of Congress, without fiscal year limitation, for financing the cooperative acquisitions program (in this section referred to as the “program”) under which the Library acquires foreign publications and research materials on behalf of participating institutions on a cost-recovery basis. Obligations under the revolving fund are limited to amounts specified in the appropriations Act for that purpose for any fiscal year.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Amounts Deposited</inline>.—</heading><chapeau>The revolving fund shall consist of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>any amounts appropriated by law for the purposes of the revolving fund;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>any amounts held by the Librarian as of October 1, 1997 or the date of enactment, whichever is later, that were collected as payment for the Library’s indirect costs of the program; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>the difference between (A) the total value of the supplies, equipment, gift fund balances, and other assets of the program, and (B) the total value of the liabilities (including unfunded liabilities such as the value of accrued annual leave of employees) of the program.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Credits to the Revolving Fund</inline>.—</heading><content>The revolving fund shall be credited with all advances and amounts received as payment for purchases under the program and services and supplies furnished to program participants, at rates estimated by the Librarian to be adequate to recover the full direct and indirect costs of the program to the Library over a reasonable period of time.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Unobligated Balances</inline>.—</heading><content>Any unobligated and unexpended balances in the revolving fund that the Librarian determines to be in excess of amounts needed for activities financed by the revolving fund, shall be deposited in the Treasury of the United States as miscellaneous receipts. Amounts needed for activities financed by the revolving fund means the direct and indirect costs of the program, including the costs of purchasing, shipping, binding of books and other library materials; supplies, materials, equipment and services needed in support of the program; salaries and benefits; general overhead; and travel.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Annual Report</inline>.—</heading><content>Not later than March 31 of each year, the Librarian of Congress shall prepare and submit to Congress an audited financial statement for the revolving fund for the preceding fiscal year. The audit shall be conducted in accordance with Government Auditing Standards for financial audits issued by the Comptroller General of the United States.</content> </subsection> </section> <section> <num value="208"><inline class="smallCaps">Sec</inline>. 208.</num> <heading><inline class="smallCaps">Authority of the Board To Invest Gift Funds</inline>.—</heading><content class="inline">Section 4 of the Act entitled “An Act to create a Library of Congress Trust Fund Board, and for other purposes”, approved March 3, 1925 (2 U.S.C. 160), is amended by adding at the end the following new undesignated paragraph: <quotedContent> <p class="indent0 fontsize10">“Upon agreement by the Librarian of Congress and the Board, a gift or bequest accepted by the Librarian under the first paragraph of this section may be invested or reinvested in the same manner as provided for trust funds under the second paragraph of section 2.”.<page identifier="/us/stat/111/1195">111 STAT. 1195</page></p> </quotedContent> </content></section> </appropriations> </appropriations> <appropriations level="major"> <heading>ARCHITECT OF THE CAPITOL</heading> <appropriations level="intermediate"> <heading>Library Buildings and Grounds</heading> <appropriations level="small"> <heading>structural and mechanical care</heading> <content>For all necessary expenses for the mechanical and structural maintenance, care and operation of the Library buildings and grounds, $11,573,000, of which $3,910,000 shall remain available until expended.</content> </appropriations> </appropriations> </appropriations> <appropriations level="major"> <heading>GOVERNMENT PRINTING OFFICE</heading> <appropriations level="intermediate"> <heading>Office of Superintendent of Documents</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For expenses of the Office of Superintendent of Documents necessary to provide for the cataloging and indexing of Government publications and their distribution to the public, Members of Congress, other Government agencies, and designated depository and international exchange libraries as authorized by law, $29,077,000: <proviso><i>Provided,</i> That travel expenses, including travel expenses of the Depository Library Council to the Public Printer, shall not exceed $150,000:</proviso> <proviso><i>Provided further,</i> That amounts of not more than $2,000,000 from current year appropriations are authorized for producing and disseminating Congressional serial sets and other related publications for 1996 and 1997 to depository and other designated libraries.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Government Printing Office Revolving Fund</heading> <content>The Government Printing Office is hereby authorized to make such expenditures, within the limits of funds available and in accord with the law, and to make such contracts and commitments without regard to fiscal year limitations as provided by section 9104 of title 31, United States Code, as may be necessary in carrying out the programs and purposes set forth in the budget for the current fiscal year for the Government Printing Office revolving fund: <proviso><i>Provided,</i> That not more than $2,500 may be expended on the certification of the Public Printer in connection with official representation and reception expenses:</proviso> <proviso><i>Provided further,</i> That the revolving fund shall be available for the hire or purchase of not more than twelve passenger motor vehicles:</proviso> <proviso><i>Provided further,</i> That expenditures in connection with travel expenses of the advisory councils to the Public Printer shall be deemed necessary to carry out the provisions of title 44, United States Code:</proviso> <proviso><i>Provided further,</i> That the revolving fund shall be available for temporary or intermittent services under section 3109(b) of title 5, United States Code, but at rates for individuals not more than the daily equivalent of the annual rate of basic pay for level V of the Executive Schedule under section 5316 of such title:</proviso> <proviso><i>Provided further,</i> That the revolving fund and the funds provided under the headings “<inline class="smallCaps">Office of Superintendent of Documents</inline>” and “<inline class="smallCaps">salaries and expenses</inline>” together may not be available for the full-time equivalent employment of more than 3,550 workyears:</proviso> <proviso><i>Provided further,</i> That activities financed through the revolving fund may provide information in any format:</proviso> <proviso><i>Provided further,</i> That the revolving fund shall not <page identifier="/us/stat/111/1196">111 STAT. 1196</page>be used to administer any flexible or compressed work schedule which applies to any manager or supervisor in a position the grade or level of which is equal to or higher than GS–15:</proviso> <proviso><i>Provided further,</i> That expenses for attendance at meetings shall not exceed $75,000:</proviso> <proviso><i>Provided further,</i> That $1,500,000 may be expended on the certification of the Public Printer, for reimbursement to the General Accounting Office, for a management audit.</proviso></content> </appropriations> </appropriations> <appropriations level="major"> <heading>GENERAL ACCOUNTING OFFICE</heading> <appropriations level="intermediate"> <heading>Salaries and Expenses</heading> <content>For necessary expenses of the General Accounting Office, including not more than $7,000 to be expended on the certification of the Comptroller General of the United States in connection with official representation and reception expenses; temporary or intermittent services under section 3109(b) of title 5, United States Code, but at rates for individuals not more than the daily equivalent of the annual rate of basic pay for level IV of the Executive Schedule under section 5315 of such title; hire of one passenger motor vehicle; advance payments in foreign countries in accordance with 31 U.S.C. 3324; benefits comparable to those payable under sections 901(5), 901(6) and 901(8) of the Foreign Service Act of 1980 (22 U.S.C. 4081(5), 4081(6) and 4081(8)); and under regulations prescribed by the Comptroller General of the United States, rental of living quarters in foreign countries; $339,499,000: <proviso><i>Provided,</i> That not more than $1,000,000 of reimbursements received incident to the operation of the General Accounting Office Building shall be available for use in fiscal year 1998:</proviso> <proviso><i>Provided further,</i> That an additional amount of $4,404,000 shall be available by transfer from funds previously deposited in the special account established pursuant <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t31/s9105">31 USC 9105 note</ref>.</p></sidenote>to 31 U.S.C. 782:</proviso> <proviso><i>Provided further,</i> That notwithstanding 31 U.S.C. 9105 hereafter amounts reimbursed to the Comptroller General pursuant to that section shall be deposited to the appropriation of the General Accounting Office then available and remain available until expended, and not more than $2,000,000 of such funds shall be available for use in fiscal year 1998:</proviso> <proviso><i>Provided further,</i> That this appropriation and appropriations for administrative expenses of any other department or agency which is a member of the Joint Financial Management Improvement Program (JFMIP) shall be available to finance an appropriate share of JFMIP costs as determined by the JFMIP, including the salary of the Executive Director and secretarial support:</proviso> <proviso><i>Provided further,</i> That this appropriation and appropriations for administrative expenses of any other department or agency which is a member of the National Intergovernmental Audit Forum or a Regional Intergovernmental Audit Forum shall be available to finance an appropriate share of either Forum’s costs as determined by the respective Forum, including necessary travel expenses of non-Federal participants. Payments hereunder to either the Forum or the JFMIP may be credited as reimbursements to any appropriation from which costs involved are initially financed:</proviso> <proviso><i>Provided further,</i> That this appropriation and appropriations for administrative expenses of any other department or agency which is a member of the American Consortium on International Public Administration (ACIPA) shall be available to finance an appropriate share of ACIPA costs as determined <page identifier="/us/stat/111/1197">111 STAT. 1197</page>by the ACIPA, including any expenses attributable to membership of ACIPA in the International Institute of Administrative Sciences.</proviso></content> </appropriations> </appropriations> <num value="III">TITLE III—</num><heading>GENERAL PROVISIONS</heading> <section> <num value="301"><inline class="smallCaps">Sec</inline>. 301.</num> <content class="inline">No part of the funds appropriated in this Act shall be used for the maintenance or care of private vehicles, except for emergency assistance and cleaning as may be provided under regulations relating to parking facilities for the House of Representatives issued by the Committee on House Oversight and for the Senate issued by the Committee on Rules and Administration.</content> </section> <section> <num value="302"><inline class="smallCaps">Sec</inline>. 302.</num> <content class="inline">No part of the funds appropriated in this Act shall remain available for obligation beyond fiscal year 1998 unless expressly so provided in this Act.</content> </section> <section> <num value="303"><inline class="smallCaps">Sec</inline>. 303.</num> <content class="inline">Whenever in this Act any office or position not specifically established by the Legislative Pay Act of 1929 is appropriated for or the rate of compensation or designation of any office or position appropriated for is different from that specifically established by such Act, the rate of compensation and the designation in this Act shall be the permanent law with respect thereto: <proviso><i>Provided,</i> That the provisions in this Act for the various items of official expenses of Members, officers, and committees of the Senate and House of Representatives, and clerk hire for Senators and Members of the House of Representatives shall be the permanent law with respect thereto.</proviso></content> </section> <section> <num value="304"><inline class="smallCaps">Sec</inline>. 304.</num> <content class="inline">The expenditure of any appropriation under this<sidenote><p class="indent0 firstIndent0 fontsize8">Contracts.</p><p class="indent0 firstIndent0 fontsize8">Public information.</p></sidenote> Act for any consulting service through procurement contract, pursuant to 5 U.S.C. 3109, shall be limited to those contracts where such expenditures are a matter of public record and available for public inspection, except where otherwise provided under existing law, or under existing Executive order issued pursuant to existing law.</content> </section> <section> <num value="305"><inline class="smallCaps">Sec</inline>. 305.</num> <subsection class="inline"><num value="a">(a)</num> <content>It is the sense of the Congress that, to the greatest extent practicable, all equipment and products purchased with funds made available in this Act should be American-made.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>In providing financial assistance to, or entering into any contract with, any entity using funds made available in this Act, the head of each Federal agency, to the greatest extent practicable, shall provide to such entity a notice describing the statement made in subsection (a) by the Congress.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <content>If it has been finally determined by a court or Federal agency that any person intentionally affixed a label bearing a “Made in America” inscription, or any inscription with the same meaning, to any product sold in or shipped to the United States that is not made in the United States, such person shall be ineligible to receive any contract or subcontract made with funds provided pursuant to this Act, pursuant to the debarment, suspension, and ineligibility procedures described in section 9.400 through 9.409 of title 48, Code of Federal Regulations.</content> </subsection> </section> <section> <num value="306"><inline class="smallCaps">Sec</inline>. 306.</num> <content class="inline">Such sums as may be necessary are appropriated to the account described in subsection (a) of section 415 of Public Law 104–1 to pay awards and settlements as authorized under such subsection.</content> </section> <section> <num value="307"><inline class="smallCaps">Sec</inline>. 307.</num> <content class="inline">Amounts available for administrative expenses of any legislative branch entity which participates in the Legislative Branch Financial Managers Council (LBFMC) established by charter on March 26, 1996, shall be available to finance an appropriate <page identifier="/us/stat/111/1198">111 STAT. 1198</page>share of LBFMC costs as determined by the LBFMC, except that the total LBFMC costs to be shared among all participating legislative branch entities (in such allocations among the entities as the entities may determine) may not exceed $1,500.</content> </section> <section> <num value="308"><inline class="smallCaps">Sec</inline>. 308.</num> <subsection class="inline"><num value="a">(a)</num> <content>Section 713(a) of title 18, United States Code, is amended by inserting after “<quotedText>Senate,</quotedText>” the following: “or the seal of the United States House of Representatives, or the seal of the United States Congress,”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>Section 713 of title 18, United States Code, is amended— (1) by redesignating subsection (d) as subsection (f); and (2) by inserting after subsection (c) the following new subsections: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <content>Whoever, except as directed by the United States House of Representatives, or the Clerk of the House of Representatives on its behalf, knowingly uses, manufactures, reproduces, sells or purchases for resale, either separately or appended to any article manufactured or sold, any likeness of the seal of the United States House of Representatives, or any substantial part thereof, except for manufacture or sale of the article for the official use of the Government of the United States, shall be fined under this title or imprisoned not more than six months, or both.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <content>Whoever, except as directed by the United States Congress, or the Secretary of the Senate and the Clerk of the House of Representatives, acting jointly on its behalf, knowingly uses, manufactures, reproduces, sells or purchases for resale, either separately or appended to any article manufactured or sold, any likeness of the seal of the United States Congress, or any substantial part thereof, except for manufacture or sale of the article for the official use of the Government of the United States, shall be fined under this title or imprisoned not more than six months, or both.”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <chapeau>Section 713(f) of title 18, United States Code (as redesignated by subsection (b)(1)), is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>and</quotedText>” at the end of paragraph (1);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking the period at the end of paragraph (2) and inserting a semicolon; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by adding at the end the following new paragraphs: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>in the case of the seal of the United States House of Representatives, upon complaint by the Clerk of the House of Representatives; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>in the case of the seal of the United States Congress, upon complaint by the Secretary of the Senate and the Clerk of the House of Representatives, acting jointly.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <content>The heading of section 713 of title 18, United States Code, is amended by striking “<quotedText><b>and the seal of the United States Senate</b></quotedText>” and inserting the following: “<b>the seal of the United States Senate, the seal of the United States House of Representatives, and the seal of the United States Congress</b>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <content>The table of sections for chapter 33 of part I of title 18, United States Code, is amended by amending the item relating to section 713 to read as follows: <quotedContent> <toc> <referenceItem role="section"><designator>“713.</designator> <label>Use of likenesses of the great seal of the United States, the seals of the President and Vice President, the seal of the United States Senate, the seal of the United States House of Representatives, and the seal of the United States Congress.”</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="309"><inline class="smallCaps">Sec</inline>. 309.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t40/s188b">40 USC 188b–6</ref>.</p></sidenote> <content class="inline">Section 316 of Public Law 101–302 is amended in the first sentence of subsection (a) by striking “<quotedText>1997</quotedText>” and inserting “<quotedText>1998</quotedText>”.<page identifier="/us/stat/111/1199">111 STAT. 1199</page></content> </section> <section> <num value="310"><inline class="smallCaps">Sec</inline>. 310.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Severance Pay</inline>.—</heading><chapeau>Section 5595 of title 5, United<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t40/s174j–1">40 USC 174j–1 note</ref>.</p></sidenote> States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in subsection (a)(1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in subparagraph (D) by striking “<quotedText>and</quotedText>” after the semicolon; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by adding after subparagraph (E) the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>the Office of the Architect of the Capitol, but only with respect to the United States Senate Restaurants; and”;</content></subparagraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>in subsection (a)(2)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in clause (vii) by striking “<quotedText>or</quotedText>” after the semicolon;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by redesignating clause (viii) as clause (ix) and inserting after clause (vii) the following: <quotedContent> <clause class="indent3 fontsize10"><num value="viii">“(viii)</num> <content>an employee of the United States Senate Restaurants of the Office of the Architect of the Capitol, who is employed on a temporary when actually employed basis; or”; and</content></clause> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>in subsection (b) by adding at the end the following: “<quotedText>The Architect of the Capitol may prescribe regulations to effect the application and operation of this section to the agency specified in subsection (a)(1)(F) of this section.</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Early Retirement</inline>.—</heading><paragraph class="inline"><num value="1">(1)</num> <chapeau>This subsection applies to an<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> employee of the United States Senate Restaurants of the Office of the Architect of the Capitol who—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A)</num> <content>voluntarily separates from service on or after the date of enactment of this Act and before October 1, 1999; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B)</num> <chapeau>on such date of separation—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>has completed 25 years of service as defined under section 8331(12) or 8401(26) of title 5, United States Code; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>has completed 20 years of such service and is at least 50 years of age.</content></clause> </subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <content>Notwithstanding any provision of chapter 83 or 84 of title 5, United States Code, an employee described under paragraph (1) is entitled to an annuity which shall be computed consistent with the provisions of law applicable to annuities under section 8336(d) or 8414(b) of title 5, United States Code.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Voluntary Separation Incentive Payments</inline>.—</heading><paragraph class="inline"><num value="1">(1)</num> <chapeau>In this subsection, the term “employee” means an employee of the United States Senate Restaurants of the Office of the Architect of the Capitol, serving without limitation, who has been currently employed for a continuous period of at least 12 months, except that such term shall not include—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>a reemployed annuitant under subchapter III of chapter 83 or chapter 84 of title 5, United States Code, or another retirement system for employees of the Government;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>an employee having a disability on the basis of which such employee is or would be eligible for disability retirement under any of the retirement systems referred to in subparagraph (A); or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>an employee who is employed on a temporary when actually employed basis.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <content>Notwithstanding any other provision of law, in order to avoid or minimize the need for involuntary separations due to a reduction in force, reorganization, transfer of function, or other similar action affecting the agency, the Architect of the Capitol <page identifier="/us/stat/111/1200">111 STAT. 1200</page>shall establish a program under which voluntary separation incentive payments may be offered to encourage not more than 50 eligible employees to separate from service voluntarily (whether by retirement or resignation) during the period beginning on the date of the enactment of this Act through September 30, 1999.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3)</num> <content>Such voluntary separation incentive payments shall be paid in accordance with the provisions of section 5597(d) of title 5, United States Code. Any such payment shall not be a basis of payment, and shall not be included in the computation, of any other type of Government benefit.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="4">(4)</num><subparagraph class="inline"><num value="A">(A)</num> <content>Subject to subparagraph (B), an employee who has received a voluntary separation incentive payment under this section and accepts employment with the Government of the United States within 5 years after the date of the separation on which the payment is based shall be required to repay the entire amount of the incentive payment to the agency that paid the incentive payment.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">(B)</num><clause class="inline"><num value="i">(i)</num> <content>If the employment is with an executive agency (as defined by section 105 of title 5, United States Code), the Director of the Office of Personnel Management may, at the request of the head of the agency, waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position.</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>If the employment is with an entity in the legislative branch, the head of the entity or the appointing official may waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position.</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>If the employment is with the judicial branch, the Director of the Administrative Office of the United States Courts may waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position.</content></clause> </subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">(C)</num> <content>For purposes of subparagraph (A) (but not subparagraph (B)), the term “employment” includes employment under a personal services contract with the United States.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="5">(5)</num> <content>The Architect of the Capitol may prescribe regulations to carry out this subsection.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Competitive Service Treatment for Certain Employees</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote><paragraph class="inline"><num value="1">(1)</num> <chapeau>This subsection applies to any employee of the United States Senate Restaurants of the Office of the Architect of the Capitol who—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A)</num> <content>is involuntarily separated from service on or after the date of the enactment of this Act and before October 1, 1999 (except by removal for cause on charges of misconduct or delinquency); and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B)</num> <content>has performed any period of service employed in the Office of the Architect of the Capitol (including the United States Senate Restaurants) in a position in the excepted service as defined under section 2103 of title 5, United States Code.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <content>For purposes of applying for employment for any position in the executive branch (including for purposes of the administration of chapter 33 of title 5, United States Code, with respect to such employment application), any period of service described under paragraph (1KB) of this subsection shall be deemed a period of service in the competitive service as defined under section 2102 of title 5, United States Code.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3)</num> <chapeau>This subsection shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> <content>take effect on the date of enactment of this Act; and<page identifier="/us/stat/111/1201">111 STAT. 1201</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>apply only to an employment application submitted<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> by an employee during the 2-year period beginning on the date of such employee’s separation from service described under paragraph (1)(A).</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Retraining, Job Placement, and Counseling Services</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>In this subsection, the term “employee”—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>means an employee of the United States Senate Restaurants of the Office of the Architect of the Capitol; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>shall not include—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>a reemployed annuitant under subchapter III of chapter 83 or chapter 84 of title 5, United States Code, or another retirement system for employees of the Government; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>an employee who is employed on a temporary when actually employed basis.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>The Architect of the Capitol may establish a program to provide retraining, job placement, and counseling services to employees and former employees.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <chapeau>A former employee may not participate in a program established under this subsection, if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>the former employee was separated from service with the United States Senate Restaurants of the Office of the Architect of the Capitol for more than 1 year; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>the separation was by removal for cause on charges of misconduct or delinquency.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>Retraining costs for the program established under this subsection may not exceed $5,000 for each employee or former employee.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Administrative Provisions</inline>.—</heading><paragraph class="inline"><num value="1">(1)</num> <chapeau>The Architect of the Capitol—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>may use employees of the Office of the Architect of the Capitol to establish and administer programs and carry out the provisions of this section; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>may procure temporary and intermittent services under section 3109(b) of title 5, United States Code, to carry out such provisions—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>not subject to the 1 year of service limitation under such section 3109(b); and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>at rates for individuals which do not exceed the daily equivalent of the annual rate of basic pay prescribed for level V of the Executive Schedule under section 5316 of such title.</content></clause> </subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <content>Funds to carry out subsections (a) and (c) may be expended only from funds available for the basic pay of the employee who is receiving the applicable payment.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3)</num> <content>Funds to carry out subsection (e) may be expended from any funds made available to the Architect of the Capitol.</content></paragraph> </subsection> </section> <section> <num value="311"><inline class="smallCaps">Sec</inline>. 311.</num> <subsection class="inline"><num value="a">(a)</num> <content>Rate of Pay for Director of Engineering.—Section 108(a) of the Legislative Branch Appropriations Act, 1991 (40 U.S.C. 166b–3b(a)) is amended by striking “<quotedText>the rate of basic pay payable for level V of the Executive Schedule</quotedText>” and inserting “<quotedText>such rate as the Architect considers appropriate, not to exceed 90 percent of the highest total rate of pay for the Senior Executive Service under chapter 53 of title 5, United States Code, for the locality involved</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Applicable Rate of Pay</inline>.—</heading><chapeau>Section 108(b)(1) of such Act (40 U.S.C 166b–3b(b)(D) is amended—<page identifier="/us/stat/111/1202">111 STAT. 1202</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking the second sentence; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<quotedText>the maximum rate allowable for the Senior Executive Service</quotedText>” each place it appears in subparagraphs (A) and (B) and inserting the following: “the highest total rate of pay for the Senior Executive Service under chapter 53 of title 5, United States Code, for the locality involved”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t40/s166b">40 USC 166b–3b note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply with respect to pay periods beginning on or after January 1, 1998.</content> </subsection> </section> <section> <num value="312"><inline class="smallCaps">Sec</inline>. 312.</num> <content><p class="indent0 fontsize10">Any amount appropriated in this Act for “HOUSE OF REPRESENTATIVES—<inline class="smallCaps">Salaries and Expenses—Members’ Representational Allowances</inline>” shall be available only for fiscal year 1998. Any amount remaining after all payments are made under such allowances for such fiscal year shall be deposited in the Treasury, to be used for deficit reduction.</p> <p class="indent0 fontsize10">This Act may be cited as the “<shortTitle role="act">Legislative Branch Appropriations Act, 1998</shortTitle>”.</p> </content></section> Approved October 7, 1997.
LEGISLATIVE HISTORY—H.R. 2209 (S. 1019): HOUSE REPORTS: Nos. 105–196 (Comm. on Appropriations) and 105–254 (Comm. of Conference). SENATE REPORTS: No. 105–47 accompanying S. 1019 (Comm. on Appropriations). CONGRESSIONAL RECORD, Vol. 143 (1997):

July 28, considered and passed House.

July 29, considered and passed Senate, amended.

Sept. 24, House and Senate agreed to conference report.

 Public Law 105–56: Making appropriations for the Department of Defense for the fiscal year ending September 30, 1998, and for other purposes. Public Law56 Public Law 105–56 111 Stat. 1203 1997-10-08 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1203

*Note: This law contains items that were cancelled by the President pursuant to the Line Item Veto Act. For more information, see the Federal Register entry under “LEGISLATIVE HISTORY” at the end of this law.

 Public Law105–56 105th Congress
An Act Making appropriations for the Department of Defense for the fiscal year ending September 30, 1998, and for other purposes.

Oct. 8, 1997

[H.R. 2266]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
That the

Department of Defense Appropriations Act, 1998.

 following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 1998, for military functions administered by the Department of Defense, and for other purposes, namely:
<num value="I">TITLE I</num> <heading>MILITARY PERSONNEL</heading> <appropriations level="intermediate"> <heading>Military Personnel, Army</heading> <content>For pay, allowances, individual clothing, subsistence, interest on deposits, gratuities, permanent change of station travel (including all expenses thereof for organizational movements), and expenses of temporary duty travel between permanent duty stations, for members of the Army on active duty (except members of reserve components provided for elsewhere), cadets, and aviation cadets; and for payments pursuant to section 156 of Public Law 97–377, as amended (42 U.S.C. 402 note), to section 229(b) of the Social Security Act (42 U.S.C. 429(b)), and to the Department of Defense Military Retirement Fund; $20,452,057,000.</content> </appropriations> <appropriations level="intermediate"> <heading>Military Personnel, Navy</heading> <content>For pay, allowances, individual clothing, subsistence, interest on deposits, gratuities, permanent change of station travel (including all expenses thereof for organizational movements), and expenses of temporary duty travel between permanent duty stations, for members of the Navy on active duty (except members of the Reserve provided for elsewhere), midshipmen, and aviation cadets; and for payments pursuant to section 156 of Public Law 97–377, as amended (42 U.S.C. 402 note), to section 229(b) of the Social Security Act (42 U.S.C. 429(b)), and to the Department of Defense Military Retirement Fund; $16,493,518,000.</content> </appropriations> <appropriations level="intermediate"> <heading>Military Personnel, Marine Corps</heading> <content>For pay, allowances, individual clothing, subsistence, interest on deposits, gratuities, permanent change of station travel (including all expenses thereof for organizational movements), and <page identifier="/us/stat/111/1204">111 STAT. 1204</page>expenses of temporary duty travel between permanent duty stations, for members of the Marine Corps on active duty (except members of the Reserve provided for elsewhere); and for payments pursuant to section 156 of Public Law 97–377, as amended (42 U.S.C. 402 note), to section 229(b) of the Social Security Act (42 U.S.C. 429(b)), and to the Department of Defense Military Retirement Fund; $6,137,899,000.</content> </appropriations> <appropriations level="intermediate"> <heading>Military Personnel, Air Force</heading> <content>For pay, allowances, individual clothing, subsistence, interest on deposits, gratuities, permanent change of station travel (including all expenses thereof for organizational movements), and expenses of temporary duty travel between permanent duty stations, for members of the Air Force on active duty (except members of reserve components provided for elsewhere), cadets, and aviation cadets; and for payments pursuant to section 156 of Public Law 97–377, as amended (42 U.S.C. 402 note), to section 229(b) of the Social Security Act (42 U.S.C. 429(b)), and to the Department of Defense Military Retirement Fund; $17,102,120,000.</content> </appropriations> <appropriations level="intermediate"> <heading>Reserve Personnel, Army</heading> <content>For pay, allowances, clothing, subsistence, gratuities, travel, and related expenses for personnel of the Army Reserve on active duty under sections 10211, 10302, and 3038 of title 10, United States Code, or while serving on active duty under section 12301(d) of title 10, United States Code, in connection with performing duty specified in section 12310(a) of title 10, United States Code, or while undergoing reserve training, or while performing drills or equivalent duty or other duty, and for members of the Reserve Officers’ Training Corps, and expenses authorized by section 16131 of title 10, United States Code; and for payments to the Department of Defense Military Retirement Fund; $2,032,046,000.</content> </appropriations> <appropriations level="intermediate"> <heading>Reserve Personnel, Navy</heading> <content>For pay, allowances, clothing, subsistence, gratuities, travel, and related expenses for personnel of the Navy Reserve on active duty under section 10211 of title 10, United States Code, or while serving on active duty under section 12301(d) of title 10, United States Code, in connection with performing duty specified in section 12310(a) of title 10, United States Code, or while undergoing reserve training, or while performing drills or equivalent duty, and for members of the Reserve Officers’ Training Corps, and expenses authorized by section 16131 of title 10, United States Code; and for payments to the Department of Defense Military Retirement Fund; $1,376,601,000.</content> </appropriations> <appropriations level="intermediate"> <heading>Reserve Personnel, Marine Corps</heading> <content>For pay, allowances, clothing, subsistence, gratuities, travel, and related expenses for personnel of the Marine Corps Reserve on active duty under section 10211 of title 10, United States Code, or while serving on active duty under section 12301(d) of title 10, United States Code, in connection with performing duty specified in section 12310(a) of title 10, United States Code, or while undergoing reserve training, or while performing drills or equivalent <page identifier="/us/stat/111/1205">111 STAT. 1205</page>duty, and for members of the Marine Corps platoon leaders class, and expenses authorized by section 16131 of title 10, United States Code; and for payments to the Department of Defense Military Retirement Fund; $391,770,000.</content> </appropriations> <appropriations level="intermediate"> <heading>Reserve Personnel, Air Force</heading> <content>For pay, allowances, clothing, subsistence, gratuities, travel, and related expenses for personnel of the Air Force Reserve on active duty under sections 10211, 10305, and 8038 of title 10, United States Code, or while serving on active duty under section 12301(d) of title 10, United States Code, in connection with performing duty specified in section 12310(a) of title 10, United States Code, or while undergoing reserve training, or while performing drills or equivalent duty or other duty, and for members of the Air Reserve Officers’ Training Corps, and expenses authorized by section 16131 of title 10, United States Code; and for payments to the Department of Defense Military Retirement Fund; $815,915,000.</content> </appropriations> <appropriations level="intermediate"> <heading>National Guard Personnel, Army</heading> <content>For pay, allowances, clothing, subsistence, gratuities, travel, and related expenses for personnel of the Army National Guard while on duty under section 10211, 10302, or 12402 of title 10 or section 708 of title 32, United States Code, or while serving on duty under section 12301(d) of title 10 or section 502(f) of title 32, United States Code, in connection with performing duty specified in section 12310(a) of title 10, United States Code, or while undergoing training, or while performing drills or equivalent duty or other duty, and expenses authorized by section 16131 of title 10, United States Code; and for payments to the Department of Defense Military Retirement Fund; $3,333,867,000.</content> </appropriations> <appropriations level="intermediate"> <heading>National Guard Personnel, Air Force</heading> <content>For pay, allowances, clothing, subsistence, gratuities, travel, and related expenses for personnel of the Air National Guard on duty under section 10211, 10305, or 12402 of title 10 or section 708 of title 32, United States Code, or while serving on duty under section 12301(d) of title 10 or section 502(f) of title 32, United States Code, in connection with performing duty specified in section 12310(a) of title 10, United States Code, or while undergoing training, or while performing drills or equivalent duty or other duty, and expenses authorized by section 16131 of title 10, United States Code; and for payments to the Department of Defense Military Retirement Fund; $1,334,712,000.</content> </appropriations> <num value="II">TITLE II</num> <heading>OPERATION AND MAINTENANCE</heading> <appropriations level="intermediate"> <heading>Operation and Maintenance, Army</heading> <subheading>(including transfer of funds)</subheading> <content>For expenses, not otherwise provided for, necessary for the operation and maintenance of the Army, as authorized by law; <page identifier="/us/stat/111/1206">111 STAT. 1206</page>and not to exceed $11,437,000 can be used for emergencies and extraordinary expenses, to be expended on the approval or authority of the Secretary of the Army, and payments may be made on his certificate of necessity for confidential military purposes; $16,754,306,000 and, in addition, $50,000,000 shall be derived by transfer from the National Defense Stockpile Transaction Fund: <proviso><i>Provided,</i> That of the funds appropriated in this paragraph, not less than $300,000,000 shall be made available only for conventional ammunition care and maintenance.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Operation and Maintenance, Navy</heading> <subheading>(including transfer of funds)</subheading> <content>For expenses, not otherwise provided for, necessary for the operation and maintenance of the Navy and the Marine Corps, as authorized by law; and not to exceed $5,500,000 can be used for emergencies and extraordinary expenses, to be expended on the approval or authority of the Secretary of the Navy, and payments may be made on his certificate of necessity for confidential military purposes; $21,617,766,000 and, in addition, $50,000,000 shall be derived by transfer from the National Defense Stockpile Transaction Fund.</content> </appropriations> <appropriations level="intermediate"> <heading>Operation and Maintenance, Marine Corps</heading> <content>For expenses, not otherwise provided for, necessary for the operation and maintenance of the Marine Corps, as authorized by law; $2,372,635,000.</content> </appropriations> <appropriations level="intermediate"> <heading>Operation and Maintenance, Air Force</heading> <subheading>(including transfer of funds)</subheading> <content>For expenses, not otherwise provided for, necessary for the operation and maintenance of the Air Force, as authorized by law; and not to exceed $8,362,000 can be used for emergencies and extraordinary expenses, to be expended on the approval or authority of the Secretary of the Air Force, and payments may be made on his certificate of necessity for confidential military purposes; $18,492,883,000 and, in addition, $50,000,000 shall be derived by transfer from the National Defense Stockpile Transaction Fund.</content> </appropriations> <appropriations level="intermediate"> <heading>Operation and Maintenance, Defense-Wide</heading> <content>For expenses, not otherwise provided for, necessary for the operation and maintenance of activities and agencies of the Department of Defense (other than the military departments), as authorized by law; $10,369,740,000, of which not to exceed $25,000,000 may be available for the CINC initiative fund account; and of which not to exceed $28,850,000 can be used for emergencies and extraordinary expenses, to be expended on the approval or authority of the Secretary of Defense, and payments may be made on his certificate of necessity for confidential military purposes.</content> </appropriations> <appropriations level="intermediate"> <heading>Operation and Maintenance, Army Reserve</heading> <content>For expenses, not otherwise provided for, necessary for the operation and maintenance, including training, organization, and <page identifier="/us/stat/111/1207">111 STAT. 1207</page>administration, of the Army Reserve; repair of facilities and equipment; hire of passenger motor vehicles; travel and transportation; care of the dead; recruiting; procurement of services, supplies, and equipment; and communications; $1,207,891,000.</content> </appropriations> <appropriations level="intermediate"> <heading>Operation and Maintenance, Navy Reserve</heading> <content>For expenses, not otherwise provided for, necessary for the operation and maintenance, including training, organization, and administration, of the Navy Reserve; repair of facilities and equipment; hire of passenger motor vehicles; travel and transportation; care of the dead; recruiting; procurement of services, supplies, and equipment; and communications; $921,711,000.</content> </appropriations> <appropriations level="intermediate"> <heading>Operation and Maintenance, Marine Corps Reserve</heading> <content>For expenses, not otherwise provided for, necessary for the operation and maintenance, including training, organization, and administration, of the Marine Corps Reserve; repair of facilities and equipment; hire of passenger motor vehicles; travel and transportation; care of the dead; recruiting; procurement of services, supplies, and equipment; and communications; $116,366,000.</content> </appropriations> <appropriations level="intermediate"> <heading>Operation and Maintenance, Air Force Reserve</heading> <content>For expenses, not otherwise provided for, necessary for the operation and maintenance, including training, organization, and administration, of the Air Force Reserve; repair of facilities and equipment; hire of passenger motor vehicles; travel and transportation; care of the dead; recruiting; procurement of services, supplies, and equipment; and communications; $1,632,030,000.</content> </appropriations> <appropriations level="intermediate"> <heading>Operation and Maintenance, Army National Guard</heading> <content>For expenses of training, organizing, and administering the Army National Guard, including medical and hospital treatment and related expenses in non-Federal hospitals; maintenance, operation, and repairs to structures and facilities; hire of passenger motor vehicles; personnel services in the National Guard Bureau; travel expenses (other than mileage), as authorized by law for Army personnel on active duty, for Army National Guard division, regimental, and battalion commanders while inspecting units in compliance with National Guard Bureau regulations when specifically authorized by the Chief, National Guard Bureau; supplying and equipping the Army National Guard as authorized by law; and expenses of repair, modification, maintenance, and issue of supplies and equipment (including aircraft); $2,419,632,000: <proviso><i>Provided,</i> That not later than March 15, 1998, the Director of the<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> Army National Guard shall provide a report to the congressional defense committees identifying the allocation, by installation and activity, of all base operations funds appropriated under this heading.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Operation and Maintenance, Air National Guard</heading> <content>For operation and maintenance of the Air National Guard, including medical and hospital treatment and related expenses in non-Federal hospitals; maintenance, operation, repair, and other <page identifier="/us/stat/111/1208">111 STAT. 1208</page>necessary expenses of facilities for the training and administration of the Air National Guard, including repair of facilities, maintenance, operation, and modification of aircraft; transportation of things, hire of passenger motor vehicles; supplies, materials, and equipment, as authorized by law for the Air National Guard; and expenses incident to the maintenance and use of supplies, materials, and equipment, including such as may be furnished from stocks under the control of agencies of the Department of Defense; travel expenses (other than mileage) on the same basis as authorized by law for Air National Guard personnel on active Federal duty, for Air National Guard commanders while inspecting units in compliance with National Guard Bureau regulations when specifically authorized by the Chief, National Guard Bureau; $3,013,282,000.</content> </appropriations> <appropriations level="intermediate"> <heading>Overseas Contingency Operations Transfer Fund</heading> <subheading>(including transfer of funds)</subheading> <content>For expenses directly relating to Overseas Contingency Operations by United States military forces; $1,884,000,000: <proviso><i>Provided,</i> That the Secretary of Defense may transfer these funds only to operation and maintenance accounts within this title, and working capital funds:</proviso> <proviso><i>Provided further,</i> That the funds transferred shall be merged with and shall be available for the same purposes and for the same time period, as the appropriation to which transferred:</proviso> <proviso><i>Provided further,</i> That the transfer authority provided in this paragraph is in addition to any other transfer authority contained elsewhere in this Act.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>United States Court of Appeals for the Armed Forces</heading> <content>For salaries and expenses necessary for the United States Court of Appeals for the Armed Forces; $6,952,000, of which not to exceed $2,500 can be used for official representation purposes.</content> </appropriations> <appropriations level="intermediate"> <heading>Environmental Restoration, Army</heading> <subheading>(including transfer of funds)</subheading> <content>For the Department of the Army, $375,337,000, to remain available until transferred: <proviso><i>Provided,</i> That the Secretary of the Army shall, upon determining that such funds are required for environmental restoration, reduction and recycling of hazardous waste, removal of unsafe buildings and debris of the Department of the Army, or for similar purposes, transfer the funds made available by this appropriation to other appropriations made available to the Department of the Army, to be merged with and to be available for the same purposes and for the same time period as the appropriations to which transferred:</proviso> <proviso><i>Provided further,</i> That upon a determination that all or part of the funds transferred from this appropriation are not necessary for the purposes provided herein, such amounts may be transferred back to this appropriation:</proviso> <proviso><i>Provided further,</i> That not more than twenty-five per centum of funds provided under this heading may be obligated for environmental remediation by the Corps of Engineers under total environmental remediation contracts.<page identifier="/us/stat/111/1209">111 STAT. 1209</page></proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Environmental Restoration, Navy</heading> <subheading>(including transfer of funds)</subheading> <content>For the Department of the Navy, $275,500,000, to remain available until transferred: <proviso><i>Provided,</i> That the Secretary of the Navy shall, upon determining that such funds are required for environmental restoration, reduction and recycling of hazardous waste, removal of unsafe buildings and debris of the Department of the Navy, or for similar purposes, transfer the funds made available by this appropriation to other appropriations made available to the Department of the Navy, to be merged with and to be available for the same purposes and for the same time period as the appropriations to which transferred:</proviso> <proviso><i>Provided further,</i> That upon a determination that all or part of the funds transferred from this appropriation are not necessary for the purposes provided herein, such amounts may be transferred back to this appropriation.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Environmental Restoration, Air Force</heading> <subheading>(including transfer of funds)</subheading> <content>For the Department of the Air Force, $376,900,000, to remain available until transferred: <proviso><i>Provided,</i> That the Secretary of the Air Force shall, upon determining that such funds are required for environmental restoration, reduction and recycling of hazardous waste, removal of unsafe buildings and debris of the Department of the Air Force, or for similar purposes, transfer the funds made available by this appropriation to other appropriations made available to the Department of the Air Force, to be merged with and to be available for the same purposes and for the same time period as the appropriations to which transferred:</proviso> <proviso><i>Provided further,</i> That upon a determination that all or part of the funds transferred from this appropriation are not necessary for the purposes provided herein, such amounts may be transferred back to this appropriation.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Environmental Restoration, Defense-Wide</heading> <subheading>(including transfer of funds)</subheading> <content>For the Department of Defense, $26,900,000, to remain available until transferred: <proviso><i>Provided,</i> That the Secretary of Defense shall, upon determining that such funds are required for environmental restoration, reduction and recycling of hazardous waste, removal of unsafe buildings and debris of the Department of Defense, or for similar purposes, transfer the funds made available by this appropriation to other appropriations made available to the Department of Defense, to be merged with and to be available for the same purposes and for the same time period as the appropriations to which transferred:</proviso> <proviso><i>Provided further,</i> That upon a determination that all or part of the funds transferred from this appropriation are not necessary for the purposes provided herein, such amounts may be transferred back to this appropriation.</proviso><page identifier="/us/stat/111/1210">111 STAT. 1210</page></content> </appropriations> <appropriations level="intermediate"> <heading>Environmental Restoration, Formerly Used Defense Sites</heading> <subheading>(including transfer of funds)</subheading> <content>For the Department of the Army, $242,300,000, to remain available until transferred: <proviso><i>Provided,</i> That the Secretary of the Army shall, upon determining that such funds are required for environmental restoration, reduction and recycling of hazardous waste, removal of unsafe buildings and debris at sites formerly used by the Department of Defense, transfer the funds made available by this appropriation to other appropriations made available to the Department of the Army, to be merged with and to be available for the same purposes and for the same time period as the appropriations to which transferred:</proviso> <proviso><i>Provided further,</i> That upon a determination that all or part of the funds transferred from this appropriation are not necessary for the purposes provided herein, such amounts may be transferred back to this appropriation.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Overseas Humanitarian, Disaster, and Civic Aid</heading> <content>For expenses relating to the Overseas Humanitarian, Disaster, and Civic Aid programs of the Department of Defense (consisting of the programs provided under sections 401, 402, 404, 2547, and 2551 of title 10, United States Code); $47,130,000, to remain available until September 30, 1999.</content> </appropriations> <appropriations level="intermediate"> <heading>Former Soviet Union Threat Reduction</heading> <content>For assistance to the republics of the former Soviet Union, including assistance provided by contract or by grants, for facilitating the elimination and the safe and secure transportation and storage of nuclear, chemical and other weapons; for establishing programs to prevent the proliferation of weapons, weapons components, and weapon-related technology and expertise; for programs relating to the training and support of defense and military personnel for demilitarization and protection of weapons, weapons components and weapons technology and expertise; $382,200,000, to remain available until September 30, 2000: <proviso><i>Provided,</i> That of the amounts provided under this heading, $35,000,000 shall be available only to support the dismantling and disposal of nuclear submarines and submarine reactor components in the Russian Far East:</proviso> <proviso><i>Provided further,</i> That of the amounts provided under this heading, $5,000,000 shall be available only for the Arctic Military Environmental Cooperation Program.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Quality of Life Enhancements, Defense</heading> <content>For expenses, not otherwise provided for, resulting from unfunded shortfalls in the repair and maintenance of real property of the Department of Defense (including military housing and barracks); $360,000,000, for the maintenance of real property of the Department of Defense (including minor construction and major maintenance and repair), which shall remain available for obligation until September 30, 1999, as follows: <list> <listItem><listContent class="indent1 fontsize10 depth0">Army, $100,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Navy, $70,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Marine Corps, $45,000,000; and</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Air Force, $145,000,000.<page identifier="/us/stat/111/1211">111 STAT. 1211</page></listContent></listItem> </list> </content></appropriations> <num value="III">TITLE III</num> <heading>PROCUREMENT</heading> <appropriations level="intermediate"> <heading>Aircraft Procurement, Army</heading> <content>For construction, procurement, production, modification, and modernization of aircraft, equipment, including ordnance, ground handling equipment, spare parts, and accessories therefor; specialized equipment and training devices; expansion of public and private plants, including the land necessary therefor, for the foregoing purposes, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and Government and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes; $1,346,317,000, to remain available for obligation until September 30, 2000.</content> </appropriations> <appropriations level="intermediate"> <heading>Missile Procurement, Army</heading> <content>For construction, procurement, production, modification, and modernization of missiles, equipment, including ordnance, ground handling equipment, spare parts, and accessories therefor; specialized equipment and training devices; expansion of public and private plants, including the land necessary therefor, for the foregoing purposes, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and Government and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes; $762,409,000, to remain available for obligation until September 30, 2000.</content> </appropriations> <appropriations level="intermediate"> <heading>Procurement of Weapons and Tracked Combat Vehicles, Army</heading> <content>For construction, procurement, production, and modification of weapons and tracked combat vehicles, equipment, including ordnance, spare parts, and accessories therefor; specialized equipment and training devices; expansion of public and private plants, including the land necessary therefor, for the foregoing purposes, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and Government and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes; $1,298,707,000, to remain available for obligation until September 30, 2000.</content> </appropriations> <appropriations level="intermediate"> <heading>Procurement of Ammunition, Army</heading> <content>For construction, procurement, production, and modification of ammunition, and accessories therefor; specialized equipment and training devices; expansion of public and private plants, including ammunition facilities authorized by section 2854 of title 10, United States Code, and the land necessary therefor, for the foregoing purposes, and such lands and interests therein, may be acquired, <page identifier="/us/stat/111/1212">111 STAT. 1212</page>and construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and Government and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes; $1,037,202,000, to remain available for obligation until September 30, 2000.</content> </appropriations> <appropriations level="intermediate"> <heading>Other Procurement, Army</heading> <content>For construction, procurement, production, and modification of vehicles, including tactical, support, and non-tracked combat vehicles; communications and electronic equipment; other support equipment; spare parts, ordnance, and accessories therefor; specialized equipment and training devices; expansion of public and private plants, including the land necessary therefor, for the foregoing purposes, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and Government and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes; $2,679,130,000, to remain available for obligation until September 30, 2000.</content> </appropriations> <appropriations level="intermediate"> <heading>Aircraft Procurement, Navy</heading> <content>For construction, procurement, production, modification, and modernization of aircraft, equipment, including ordnance, spare parts, and accessories therefor; specialized equipment; expansion of public and private plants, including the land necessary therefor, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and Government and contractor-owned equipment layaway; $6,535,444,000, to remain available for obligation until September 30, 2000.</content> </appropriations> <appropriations level="intermediate"> <heading>Weapons Procurement, Navy</heading> <content>For construction, procurement, production, modification, and modernization of missiles, torpedoes, other weapons, and related support equipment including spare parts, and accessories therefor; expansion of public and private plants, including the land necessary therefor, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and Government and contractor-owned equipment layaway; $1,102,193,000, to remain available for obligation until September 30, 2000.</content> </appropriations> <appropriations level="intermediate"> <heading>Procurement of Ammunition, Navy and Marine Corps</heading> <content>For construction, procurement, production, and modification of ammunition, and accessories therefor; specialized equipment and training devices; expansion of public and private plants, including ammunition facilities authorized by section 2854 of title 10, United States Code, and the land necessary therefor, for the foregoing <page identifier="/us/stat/111/1213">111 STAT. 1213</page>purposes, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and Government and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes; $397,547,000, to remain available for obligation until September 30, 2000.</content> </appropriations> <appropriations level="intermediate"> <heading>Shipbuilding and Conversion, Navy</heading> <content><p class="indent0 fontsize10">For expenses necessary for the construction, acquisition, or conversion of vessels as authorized by law, including armor and armament thereof, plant equipment, appliances, and machine tools and installation thereof in public and private plants; reserve plant and Government and contractor-owned equipment layaway; procurement of critical, long leadtime components and designs for vessels to be constructed or converted in the future; and expansion of public and private plants, including land necessary therefor, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title, as follows:</p> <list> <listItem><listContent class="indent1 fontsize10 depth0">For continuation of the SSN–21 attack submarine program, $153,444,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">NSSN, $2,314,903,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">NSSN (AP), $284,859,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">CVN–77 (AP), $50,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">CVN Refuelings, $1,615,003,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">CVN Refuelings (AP), $46,855,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">DDG–51 destroyer program, $3,411,200,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">DDG–51 destroyer program (AP), $157,806,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">LPD–17 amphibious transport dock ship (AP), $100,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Oceanographic ship program (AP), $16,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">LCAC landing craft air cushion program, $20,000,000; and</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">For craft, outfitting, post delivery, conversions, and first destination transportation, $137,521,000;</listContent></listItem> </list> <p class="indent0 fontsize10">In all: $8,235,591,000, to remain available for obligation until September 30, 2002: <proviso><i>Provided,</i> That additional obligations may be incurred after September 30, 2002, for engineering services, tests, evaluations, and other such budgeted work that must be performed in the final stage of ship construction:</proviso> <proviso><i>Provided further,</i> That none of the funds provided under this heading for the construction or conversion of any naval vessel to be constructed in shipyards in the United States shall be expended in foreign facilities for the construction of major components of such vessel:</proviso> <proviso><i>Provided further,</i> That none of the funds provided under this heading shall be used for the construction of any naval vessel in foreign shipyards.</proviso></p> </content></appropriations> <appropriations level="intermediate"> <heading>Other Procurement, Navy</heading> <content>For procurement, production, and modernization of support equipment and materials not otherwise provided for, Navy ordnance (except ordnance for new aircraft, new ships, and ships authorized for conversion); the purchase of not to exceed 194 passenger motor vehicles for replacement only; and the purchase of one vehicle required for physical security of personnel, notwithstanding price limitations applicable to passenger vehicles but not to exceed $232,340 per vehicle; expansion of public and private plants, including the land necessary therefor, and such lands and interests <page identifier="/us/stat/111/1214">111 STAT. 1214</page>therein, may be acquired, and construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and Government and contractor-owned equipment layaway; $3,144,205,000, to remain available for obligation until September 30, 2000.</content> </appropriations> <appropriations level="intermediate"> <heading>Procurement, Marine Corps</heading> <content>For expenses necessary for the procurement, manufacture, and modification of missiles, armament, military equipment, spare parts, and accessories therefor; plant equipment, appliances, and machine tools, and installation thereof in public and private plants; reserve plant and Government and contractor-owned equipment layaway; vehicles for the Marine Corps, including the purchase of not to exceed 40 passenger motor vehicles for replacement only; and expansion of public and private plants, including land necessary therefor, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; $482,398,000, to remain available for obligation until September 30, 2000.</content> </appropriations> <appropriations level="intermediate"> <heading>Aircraft Procurement, Air Force</heading> <content>For construction, procurement, and modification of aircraft and equipment, including armor and armament, specialized ground handling equipment, and training devices, spare parts, and accessories therefor; specialized equipment; expansion of public and private plants, Government-owned equipment and installation thereof in such plants, erection of structures, and acquisition of land, for the foregoing purposes, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; reserve plant and Government and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes including rents and transportation of things; $6,480,983,000, to remain available for obligation until September 30, 2000: <proviso><i>Provided,</i> That of the funds made available under this heading, $331,000,000 shall be available for long lead activities related to the procurement of additional B–2 bombers:</proviso> <proviso><i>Provided further,</i> That if the President determines that no additional B–2 bombers should be procured during this fiscal year, and he certifies to the Congress his decision, the funding described in the previous proviso shall be made available to modify and repair the existing fleet of B–2 bombers.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Missile Procurement, Air Force</heading> <content>For construction, procurement, and modification of missiles, spacecraft, rockets, and related equipment, including spare parts and accessories therefor, ground handling equipment, and training devices; expansion of public and private plants, Government-owned equipment and installation thereof in such plants, erection of structures, and acquisition of land, for the foregoing purposes, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; reserve plant and Government and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes including rents and <page identifier="/us/stat/111/1215">111 STAT. 1215</page>transportation of things; $2,394,202,000, to remain available for obligation until September 30, 2000.</content> </appropriations> <appropriations level="intermediate"> <heading>Procurement of Ammunition, Air Force</heading> <content>For construction, procurement, production, and modification of ammunition, and accessories therefor; specialized equipment and training devices; expansion of public and private plants, including ammunition facilities authorized by section 2854 of title 10, United States Code, and the land necessary therefor, for the foregoing purposes, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and Government and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes; $398,534,000, to remain available for obligation until September 30, 2000.</content> </appropriations> <appropriations level="intermediate"> <heading>Other Procurement, Air Force</heading> <content>For procurement and modification of equipment (including ground guidance and electronic control equipment, and ground electronic and communication equipment), and supplies, materials, and spare parts therefor, not otherwise provided for; the purchase of not to exceed 196 passenger motor vehicles for replacement only; the purchase of one vehicle required for physical security of personnel, notwithstanding price limitations applicable to passenger vehicles but not to exceed $232,340 per vehicle; and expansion of public and private plants, Government-owned equipment and installation thereof in such plants, erection of structures, and acquisition of land, for the foregoing purposes, and such lands and interests therein, may be acquired, and construction prosecuted thereon, prior to approval of title; reserve plant and Government and contractor-owned equipment layaway; $6,592,909,000, to remain available for obligation until September 30, 2000.</content> </appropriations> <appropriations level="intermediate"> <heading>Procurement, Defense-Wide</heading> <content>For expenses of activities and agencies of the Department of Defense (other than the military departments) necessary for procurement, production, and modification of equipment, supplies, materials, and spare parts therefor, not otherwise provided for; the purchase of not to exceed 381 passenger motor vehicles for replacement only; expansion of public and private plants, equipment, and installation thereof in such plants, erection of structures, and acquisition of land for the foregoing purposes, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approved of title; reserve plant and Government and contractor-owned equipment layaway; $2,106,444,000, to remain available for obligation until September 30, 2000.</content> </appropriations> <appropriations level="intermediate"> <heading>National Guard and Reserve Equipment</heading> <content>For procurement of aircraft, missiles, tracked combat vehicles, ammunition, other weapons, and other procurement for the reserve components of the Armed Forces; $653,000,000, to remain available for obligation until September 30, 2000: <proviso><i>Provided,</i> That the Chiefs of the Reserve and National Guard components shall, not later <page identifier="/us/stat/111/1216">111 STAT. 1216</page>than 30 days after the enactment of this Act, individually submit to the congressional defense committees the modernization priority assessment for their respective Reserve or National Guard component.</proviso></content> </appropriations> <num value="IV">TITLE IV</num> <heading>RESEARCH, DEVELOPMENT, TEST AND EVALUATION</heading> <appropriations level="intermediate"> <heading>Research, Development, Test and Evaluation, Army</heading> <content>For expenses necessary for basic and applied scientific research, development, test and evaluation, including maintenance, rehabilitation, lease, and operation of facilities and equipment; $5,156,507,000, to remain available for obligation until September 30, 1999.</content> </appropriations> <appropriations level="intermediate"> <heading>Research, Development, Test and Evaluation, Navy</heading> <content>For expenses necessary for basic and applied scientific research, development, test and evaluation, including maintenance, rehabilitation, lease, and operation of facilities and equipment; $8,115,686,000, to remain available for obligation until September 30, 1999: <proviso><i>Provided,</i> That funds appropriated in this paragraph which are available for the V–22 may be used to meet unique requirements of the Special Operations Forces.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Research, Development, Test and Evaluation, Air Force</heading> <content>For expenses necessary for basic and applied scientific research, development, test and evaluation, including maintenance, rehabilitation, lease, and operation of facilities and equipment; $14,507,804,000, to remain available for obligation until September 30, 1999: <proviso><i>Provided,</i> That of the funds made available in this paragraph, $4,000,000 shall be only for development of coal-derived jet fuel technologies.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Research, Development, Test and Evaluation, Defense-Wide</heading> <content>For expenses of activities and agencies of the Department of Defense (other than the military departments), necessary for basic and applied scientific research, development, test and evaluation; advanced research projects as may be designated and determined by the Secretary of Defense, pursuant to law; maintenance, rehabilitation, lease, and operation of facilities and equipment; $9,821,760,000, to remain available for obligation until September 30, 1999: <proviso><i>Provided,</i> That not less than $409,898,000 of the funds appropriated in this paragraph shall be made available only for the Sea-Based Wide Area Defense (Navy Upper-Tier) Program:</proviso> <proviso><i>Provided further,</i> That funds appropriated for the Dual-Use Applications Program under section 5803 of the Treasury, Postal Service, and General Government Appropriations Act, 1997 (Public Law 104–208), shall remain available for obligation until September 30, 1998.</proviso><page identifier="/us/stat/111/1217">111 STAT. 1217</page></content> </appropriations> <appropriations level="intermediate"> <heading>Developmental Test and Evaluation, Defense</heading> <content>For expenses, not otherwise provided for, of independent activities of the Director, Test and Evaluation in the direction and supervision of developmental test and evaluation, including performance and joint developmental testing and evaluation; and administrative expenses in connection therewith; $258,183,000, to remain available for obligation until September 30, 1999.</content> </appropriations> <appropriations level="intermediate"> <heading>Operational Test and Evaluation, Defense</heading> <content>For expenses, not otherwise provided for, necessary for the independent activities of the Director, Operational Test and Evaluation in the direction and supervision of operational test and evaluation, including initial operational test and evaluation which is conducted prior to, and in support of, production decisions; joint operational testing and evaluation; and administrative expenses in connection therewith; $31,384,000, to remain available for obligation until September 30, 1999.</content> </appropriations> <num value="V">TITLE V</num> <heading>REVOLVING AND MANAGEMENT FUNDS</heading> <appropriations level="intermediate"> <heading>Defense Working Capital Funds</heading> <content>For the Defense Working Capital Funds; $971,952,000.</content> </appropriations> <appropriations level="intermediate"> <heading>National Defense Sealift Fund</heading> <content>For National Defense Sealift Fund programs, projects, and activities, and for expenses of the National Defense Reserve Fleet, as established by section 11 of the Merchant Ship Sales Act of 1946 (50 U.S.C. App. 1744); $1,074,948,000, to remain available until expended: <proviso><i>Provided,</i> That none of the funds provided in this paragraph shall be used to award a new contract that provides for the acquisition of any of the following major components unless such components are manufactured in the United States: auxiliary equipment, including pumps, for all shipboard services; propulsion system components (that is; engines, reduction gears, and propellers); shipboard cranes; and spreaders for shipboard cranes:</proviso> <proviso><i>Provided further,</i> That the exercise of an option in a contract awarded through the obligation of previously appropriated funds shall not be considered to be the award of a new contract:</proviso> <proviso><i>Provided further,</i> That the Secretary of the military department responsible for such procurement may waive these restrictions on a case-by-case basis by certifying in writing to the Committees on Appropriations of the House of Representatives and the Senate, that adequate domestic supplies are not available to meet Department of Defense requirements on a timely basis and that such an acquisition must be made in order to acquire capability for national security purposes.</proviso><page identifier="/us/stat/111/1218">111 STAT. 1218</page></content> </appropriations> <num value="VI">TITLE VI</num> <heading>OTHER DEPARTMENT OF DEFENSE PROGRAMS</heading> <appropriations level="intermediate"> <heading>Defense Health Program</heading> <content>For expenses, not otherwise provided for, for medical and health care programs of the Department of Defense, as authorized by law; $10,369,075,000, of which $10,095,007,000 shall be for Operation and maintenance, of which not to exceed two per centum shall remain available until September 30, 1999, and of which $274,068,000, to remain available for obligation until September 30, 2000, shall be for Procurement.</content> </appropriations> <appropriations level="intermediate"> <heading>Chemical Agents and Munitions Destruction, Defense</heading> <content>For expenses, not otherwise provided for, necessary for the destruction of the United States stockpile of lethal chemical agents and munitions in accordance with the provisions of section 1412 of the Department of Defense Authorization Act, 1986 (50 U.S.C. 1521), and for the destruction of other chemical warfare materials that are not in the chemical weapon stockpile, $600,700,000, of which $462,200,000 shall be for Operation and maintenance, $72,200,000 shall be for Procurement to remain available until September 30, 2000, and $66,300,000 shall be for Research, development, test and evaluation to remain available until September 30, 1999. <proviso><i>Provided,</i> That of the funds available under this heading, $1,000,000 shall be available until expended each year only for a Johnston Atoll off-island leave program:</proviso> <proviso><i>Provided further,</i> That the Secretaries concerned shall, pursuant to uniform regulations, prescribe travel and transportation allowances for travel by participants in the off-island leave program.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Drug Interdiction and Counter-Drug Activities, Defense</heading> <subheading>(including transfer of funds)</subheading> <content>For drug interdiction and counter-drug activities of the Department of Defense, for transfer to appropriations available to the Department of Defense for military personnel of the reserve components serving under the provisions of title 10 and title 32, United States Code; for Operation and maintenance; for Procurement; and for Research, development, test and evaluation; $712,882,000: <proviso><i>Provided,</i> That the funds appropriated under this head shall be available for obligation for the same time period and for the same purpose as the appropriation to which transferred:</proviso> <proviso><i>Provided further,</i> That the transfer authority provided in this paragraph is in addition to any transfer authority contained elsewhere in this Act.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Office of the Inspector General</heading> <content>For expenses and activities of the Office of the Inspector General in carrying out the provisions of the Inspector General Act of 1978, as amended; $138,380,000, of which $136,580,000 shall be for Operation and maintenance, of which not to exceed $500,000 is available for emergencies and extraordinary expenses to be expended on the approval or authority of the Inspector General, and payments may be made on his certificate of necessity for <page identifier="/us/stat/111/1219">111 STAT. 1219</page>confidential military purposes; and of which $1,800,000, to remain available until September 30, 2000, shall be for Procurement.</content> </appropriations> <num value="VII">TITLE VII</num> <heading>RELATED AGENCIES</heading> <appropriations level="intermediate"> <heading>Central Intelligence Agency Retirement and Disability System Fund</heading> <content>For payment to the Central Intelligence Agency Retirement and Disability System Fund, to maintain proper funding level for continuing the operation of the Central Intelligence Agency Retirement and Disability System; $196,900,000.</content> </appropriations> <appropriations level="intermediate"> <heading>Intelligence Community Management Account</heading> <subheading>(including transfer of funds)</subheading> <content>For necessary expenses of the Intelligence Community Management Account; $121,080,000, of which $39,011,000 for the Advanced Research and Development Committee and the Environmental Intelligence and Applications Program shall remain available until September 30, 1999: <proviso><i>Provided,</i> That of the funds appropriated under this heading, $27,000,000 shall be transferred to the Department of Justice for the National Drug Intelligence Center to support the Department of Defense’s counter-drug intelligence responsibilities, and of the said amount, $1,500,000 for Procurement shall remain available until September 30, 2000, and $3,000,000 for Research, development, test and evaluation shall remain available until September 30, 1999.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Payment to Kaho’olawe Island Conveyance, Remediation, and Environmental Restoration Fund</heading> <content>For payment to Kaho’olawe Island Conveyance, Remediation, and Environmental Restoration Fund, as authorized by law; $35,000,000, to remain available until expended.</content> </appropriations> <appropriations level="intermediate"> <heading>National Security Education Trust Fund</heading> <content>For the purposes of title VIII of Public Law 102–183, $2,000,000, to be derived from the National Security Education Trust Fund, to remain available until expended.</content> </appropriations> <num value="VIII">TITLE VIII</num> <heading>GENERAL PROVISIONS</heading> <section> <num value="8001"><inline class="smallCaps">Sec</inline>. 8001.</num> <content class="inline">No part of any appropriation contained in this Act shall be used for publicity or propaganda purposes not authorized by the Congress.</content> </section> <section> <num value="8002"><inline class="smallCaps">Sec</inline>. 8002.</num> <content class="inline">During the current fiscal year, provisions of law<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1584">10 USC 1584 note</ref>.</p></sidenote> prohibiting the payment of compensation to, or employment of, any person not a citizen of the United States shall not apply to personnel of the Department of Defense: <proviso><i>Provided,</i> That salary increases granted to direct and indirect hire foreign national employees of the Department of Defense funded by this Act shall not be at a rate in excess of the percentage increase authorized <page identifier="/us/stat/111/1220">111 STAT. 1220</page>by law for civilian employees of the Department of Defense whose pay is computed under the provisions of section 5332 of title 5, United States Code, or at a rate in excess of the percentage increase provided by the appropriate host nation to its own employees, whichever is higher:</proviso> <proviso><i>Provided further,</i> That this section shall not apply to Department of Defense foreign service national employees serving at United States diplomatic missions whose pay is set by the Department of State under the Foreign Service Act of 1980:</proviso> <proviso><i>Provided further,</i> That the limitations of this provision shall not apply to foreign national employees of the Department of Defense in the Republic of Turkey.</proviso></content> </section> <section> <num value="8003"><inline class="smallCaps">Sec</inline>. 8003.</num> <content class="inline">No part of any appropriation contained in this Act shall remain available for obligation beyond the current fiscal year, unless expressly so provided herein.</content> </section> <section> <num value="8004"><inline class="smallCaps">Sec</inline>. 8004.</num> <content class="inline">No more than 20 per centum of the appropriations in this Act which are limited for obligation during the current fiscal year shall be obligated during the last two months of the fiscal year: <proviso><i>Provided,</i> That this section shall not apply to obligations for support of active duty training of reserve components or summer camp training of the Reserve Officers’ Training Corps.</proviso></content> </section> <level> <heading class="centered">(<inline class="smallCaps">transfer of funds</inline>)</heading> <section> <num value="8005"><inline class="smallCaps">Sec</inline>. 8005.</num> <content class="inline">Upon determination by the Secretary of Defense that such action is necessary in the national interest, he may, with the approval of the Office of Management and Budget, transfer not to exceed $2,000,000,000 of working capital funds of the Department of Defense or funds made available in this Act to the Department of Defense for military functions (except military construction) between such appropriations or funds or any subdivision thereof, to be merged with and to be available for the same purposes, and for the same time period, as the appropriation or fund to which transferred: <proviso><i>Provided,</i> That such authority to transfer may not be used unless for higher priority items, based on unforeseen military requirements, than those for which originally appropriated and in no case where the item for which funds are requested <sidenote><p class="indent0 firstIndent0 fontsize8">Notification.</p></sidenote>has been denied by Congress:</proviso> <proviso><i>Provided further,</i> That the Secretary of Defense shall notify the Congress promptly of all transfers made pursuant to this authority or any other authority in this Act:</proviso> <proviso><i>Provided further,</i> That no part of the funds in this Act shall be available to prepare or present a request to the Committees on Appropriations for reprogramming of funds, unless for higher priority items, based on unforeseen military requirements, than those for which originally appropriated and in no case where the item for which reprogramming is requested has been denied by the Congress:</proviso> <proviso><i>Provided further,</i> That of the authority provided under this section, not to exceed $65,000,000 shall be available to meet requirements for termination of the Reserve Mobilization Insurance Program, notwithstanding chapter 1214 of title 10, United States Code.</proviso></content> </section> </level> <level> <heading>(<inline class="smallCaps">transfer of funds</inline>)</heading> <section> <num value="8006"><inline class="smallCaps">Sec</inline>. 8006.</num> <content class="inline">During the current fiscal year, cash balances in working capital funds of the Department of Defense established pursuant to section 2208 of title 10, United States Code, may be maintained in only such amounts as are necessary at any time for cash disbursements to be made from such funds: <proviso><i>Provided,</i> <page identifier="/us/stat/111/1221">111 STAT. 1221</page>That transfers may be made between such funds:</proviso> <proviso><i>Provided further,</i> That transfers may be made between working capital funds and the “Foreign Currency Fluctuations, Defense” appropriation and the “Operation and Maintenance” appropriation accounts in such amounts as may be determined by the Secretary of Defense, with the approval of the Office of Management and Budget, except that such transfers may not be made unless the Secretary of Defense has notified the Congress of the proposed transfer. Except in amounts equal to the amounts appropriated to working capital funds in this Act, no obligations may be made against a working capital fund to procure or increase the value of war reserve material inventory, unless the Secretary of Defense has notified the Congress prior to any such obligation.</proviso></content> </section> <section> <num value="8007"><inline class="smallCaps">Sec</inline>. 8007.</num> <content class="inline">Funds appropriated by this Act may not be used to initiate a special access program without prior notification 30 calendar days in session in advance to the congressional defense committees.</content> </section> <section> <num value="8008"><inline class="smallCaps">Sec</inline>. 8008.</num> <subsection class="inline"><num value="a">(a)</num> <content><p class="indent0 fontsize10">None of the funds provided in this Act shall<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2306b">10 USC 2306b note</ref>.</p></sidenote> be available to initiate: (1)a multiyear contract that employs economic order quantity procurement in excess of $20,000,000 in any one year of the contract or that includes an unfunded contingent liability in excess of $20,000,000; or (2) a contract for advance procurement leading to a multiyear contract that employs economic order quantity procurement in excess of $20,000,000 in any one year, unless the congressional defense committees have been notified at least 30 days in advance of the proposed contract award: <proviso><i>Provided,</i> That no part of any appropriation contained in this Act shall be available to initiate a multiyear contract for which the economic order quantity advance procurement is not funded at least to the limits of the Government’s liability:</proviso> <proviso><i>Provided further,</i> That no part of any appropriation contained in this Act shall be available to initiate multiyear procurement contracts for any systems or component thereof if the value of the multiyear contract would exceed $500,000,000 unless specifically provided in this Act:</proviso> <proviso><i>Provided further,</i> That no multiyear procurement contract can be terminated without 10-day prior notification to the congressional defense committees:</proviso> <proviso><i>Provided further,</i> That the execution of multiyear authority shall require the use of a present value analysis to determine lowest cost compared to an annual procurement.</proviso></p> <p class="indent0 fontsize10">Funds appropriated in title III of this Act may be used for multiyear procurement contracts as follows:</p> <list> <listItem><listContent class="indent1 fontsize10 depth0">Apache Longbow radar;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">AV–8B aircraft; and</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Family of Medium Tactical Vehicles.</listContent></listItem> </list> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <chapeau>None of the funds provided in this Act and hereafter may be used to submit to Congress (or to any committee of Congress) a request for authority to enter into a contract covered by those provisions of subsection (a) that precede the first proviso of that subsection unless—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>such request is made as part of the submission of the President’s Budget for the United States Government for any fiscal year and is set forth in the Appendix to that budget as part of proposed legislative language for appropriations bills for the next fiscal year; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>such request is formally submitted by the President as a budget amendment; or<page identifier="/us/stat/111/1222">111 STAT. 1222</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>the Secretary of Defense makes such request in writing to the congressional defense committees.</content></paragraph> </subsection> </section> <section> <num value="8009"><inline class="smallCaps">Sec</inline>. 8009.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s401">10 USC 401 note</ref>.</p></sidenote> <content class="inline">Within the funds appropriated for the operation and maintenance of the Armed Forces, funds are hereby appropriated pursuant to section 401 of title 10, United States Code, for humanitarian and civic assistance costs under chapter 20 of <sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote>title 10, United States Code. Such funds may also be obligated for humanitarian and civic assistance costs incidental to authorized operations and pursuant to authority granted in section 401 of chapter 20 of title 10, United States Code, and these obligations shall be reported to Congress on September 30 of each year: <proviso><i>Provided,</i> That funds available for operation and maintenance shall be available for providing humanitarian and similar assistance by using Civic Action Teams in the Trust Territories of the Pacific Islands and freely associated states of Micronesia, pursuant to the Compact of Free Association as authorized by Public Law 99–239:</proviso> <proviso><i>Provided further,</i> That upon a determination by the Secretary of the Army that such action is beneficial for graduate medical education programs conducted at Army medical facilities located in Hawaii, the Secretary of the Army may authorize the provision of medical services at such facilities and transportation to such facilities, on a nonreimbursable basis, for civilian patients from American Samoa, the Commonwealth of the Northern Mariana Islands, the Marshall Islands, the Federated States of Micronesia, Palau, and Guam.</proviso></content> </section> <section> <num value="8010"><inline class="smallCaps">Sec</inline>. 8010.</num> <subsection class="inline"><num value="a">(a)</num> <content>During fiscal year 1998, the civilian personnel of the Department of Defense may not be managed on the basis of any end-strength, and the management of such personnel during that fiscal year shall not be subject to any constraint or limitation (known as an end-strength) on the number of such personnel who may be employed on the last day of such fiscal year.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>The fiscal year 1999 budget request for the Department of Defense as well as all justification material and other documentation supporting the fiscal year 1999 Department of Defense budget request shall be prepared and submitted to the Congress as if subsections (a) and (b) of this provision were effective with regard to fiscal year 1999.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <content>Nothing in this section shall be construed to apply to military (civilian) technicians.</content> </subsection> </section> <section> <num value="8011"><inline class="smallCaps">Sec</inline>. 8011.</num> <content class="inline">Notwithstanding any other provision of law, none of the funds made available by this Act shall be used by the Department of Defense to exceed, outside the 50 United States, its territories, and the District of Columbia, 125,000 civilian workyears: <proviso><i>Provided,</i> That workyears shall be applied as defined in the Federal Personnel Manual:</proviso> <proviso><i>Provided further,</i> That workyears expended in dependent student hiring programs for disadvantaged youths shall not be included in this workyear limitation.</proviso></content> </section> <section> <num value="8012"><inline class="smallCaps">Sec</inline>. 8012.</num> <content class="inline">None of the funds made available by this Act shall be used in any way, directly or indirectly, to influence congressional action on any legislation or appropriation matters pending before the Congress.</content> </section> <section> <num value="8013"><inline class="smallCaps">Sec</inline>. 8013.</num> <subsection class="inline"><num value="a">(a)</num> <chapeau>None of the funds appropriated by this Act shall be used to make contributions to the Department of Defense Education Benefits Fund pursuant to section 2006(g) of title 10, United States Code, representing the normal cost for future benefits <page identifier="/us/stat/111/1223">111 STAT. 1223</page>under section 3015(c) of title 38, United States Code, for any member of the armed services who, on or after the date of enactment of this Act—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>enlists in the armed services for a period of active duty of less than three years; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>receives an enlistment bonus under section 308a or 308f of title 37, United States Code,</content></paragraph> <continuation class="indent0 fontsize10">nor shall any amounts representing the normal cost of such future benefits be transferred from the Fund by the Secretary of the Treasury to the Secretary of Veterans Affairs pursuant to section 2006(d) of title 10, United States Code; nor shall the Secretary of Veterans Affairs pay such benefits to any such member: <proviso><i>Provided,</i> That in the case of a member covered by clause (1), these limitations shall not apply to members in combat arms skills or to members who enlist in the armed services on or after July 1, 1989, under a program continued or established by the Secretary of Defense in fiscal year 1991 to test the cost-effective use of special recruiting incentives involving not more than nineteen noncombat arms skills approved in advance by the Secretary of Defense:</proviso> <proviso><i>Provided further,</i><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> That this subsection applies only to active components of the Army.</proviso></continuation> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>None of the funds appropriated by this Act shall be available for the basic pay and allowances of any member of the Army participating as a full-time student and receiving benefits paid by the Secretary of Veterans Affairs from the Department of Defense Education Benefits Fund when time spent as a full-time student is credited toward completion of a service commitment: <proviso><i>Provided,</i> That this subsection shall not apply to those members who have reenlisted with this option prior to October 1, 1987:</proviso> <proviso><i>Provided further,</i> That this subsection applies only to active components of<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> the Army.</proviso></content> </subsection> </section> <section> <num value="8014"><inline class="smallCaps">Sec</inline>. 8014.</num> <content class="inline">None of the funds appropriated by this Act shall be available to convert to contractor performance an activity or function of the Department of Defense that, on or after the date of enactment of this Act, is performed by more than ten Department of Defense civilian employees until a most efficient and cost-effective organization analysis is completed on such activity or function and certification of the analysis is made to the Committees on Appropriations of the House of Representatives and the Senate: <proviso><i>Provided,</i> That this section shall not apply to a commercial or industrial type function of the Department of Defense that: (1) is included on the procurement list established pursuant to section 2 of the Act of June 25, 1938 (41 U.S.C. 47), popularly referred to as the Javits-Wagner-O’Day Act; (2) is planned to be converted to performance by a qualified nonprofit agency for the blind or by a qualified nonprofit agency for other severely handicapped individuals in accordance with that Act; or (3) is planned to be converted to performance by a qualified firm under 51 per centum Native American ownership.</proviso></content> </section> </level> <level> <heading class="centered">(<inline class="smallCaps">transfer of funds</inline>)</heading> <section> <num value="8015"><inline class="smallCaps">Sec</inline>. 8015.</num> <content class="inline">Funds appropriated in title III of this Act for the Department of Defense Pilot Mentor-Protege Program may be transferred to any other appropriation contained in this Act solely for the purpose of implementing a Mentor-Protege Program developmental assistance agreement pursuant to section 831 of the National Defense Authorization Act for Fiscal Year 1991 (Public <page identifier="/us/stat/111/1224">111 STAT. 1224</page>Law 101–510; 10 U.S.C. 2301 note), as amended, under the authority of this provision or any other transfer authority contained in this Act.</content> </section> <section> <num value="8016"><inline class="smallCaps">Sec</inline>. 8016.</num> <content class="inline">None of the funds in this Act may be available for the purchase by the Department of Defense (and its departments and agencies) of welded shipboard anchor and mooring chain 4 inches in diameter and under unless the anchor and mooring chain are manufactured in the United States from components which are substantially manufactured in the United States: <proviso><i>Provided,</i> That for the purpose of this section manufactured will include cutting, heat treating, quality control, testing of chain and welding (including the forging and shot blasting process):</proviso> <proviso><i>Provided further,</i> That for the purpose of this section substantially all of the components of anchor and mooring chain shall be considered to be produced or manufactured in the United States if the aggregate cost of the components produced or manufactured in the United States exceeds the aggregate cost of the components produced or manufactured outside the United States:</proviso> <proviso><i>Provided further,</i> That when adequate domestic supplies are not available to meet Department of Defense requirements on a timely basis, the Secretary of the service responsible for the procurement may waive this restriction on a case-by-case basis by certifying in writing to the Committees on Appropriations that such an acquisition must be made in order to acquire capability for national security purposes.</proviso></content> </section> <section> <num value="8017"><inline class="smallCaps">Sec</inline>. 8017.</num> <content class="inline">None of the funds appropriated by this Act available for the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS) shall be available for the reimbursement of any health care provider for inpatient mental health service for care received when a patient is referred to a provider of inpatient mental health care or residential treatment care by a medical or health care professional having an economic interest in the facility to which the patient is referred: <proviso><i>Provided,</i> That this limitation does not apply in the case of inpatient mental health services provided under the program for the handicapped under subsection (d) of section 1079 of title 10, United States Code, provided as partial hospital care, or provided pursuant to a waiver authorized by the Secretary of Defense because of medical or psychological circumstances of the patient that are confirmed by a health professional who is not a Federal employee after a review, pursuant to rules prescribed by the Secretary, which takes into account the appropriate level of care for the patient, the intensity of services required by the patient, and the availability of that care.</proviso></content> </section> <section> <num value="8018"><inline class="smallCaps">Sec</inline>. 8018.</num> <content class="inline">Funds available in this Act may be used to provide transportation for the next-of-kin of individuals who have been prisoners of war or missing in action from the Vietnam era to an annual meeting in the United States, under such regulations as the Secretary of Defense may prescribe.</content> </section> <section> <num value="8019"><inline class="smallCaps">Sec</inline>. 8019.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2687">10 USC 2687. note</ref>.</p></sidenote> <content class="inline">Notwithstanding any other provision of law, during the current fiscal year, the Secretary of Defense may, by executive agreement, establish with host nation governments in NATO member states a separate account into which such residual value amounts negotiated in the return of United States military installations in NATO member states may be deposited, in the currency of the host nation, in lieu of direct monetary transfers to the United States Treasury: <proviso><i>Provided,</i> That such credits may be utilized only for the construction of facilities to support United States military forces in that host nation, or such real property maintenance <page identifier="/us/stat/111/1225">111 STAT. 1225</page>and base operating costs that are currently executed through monetary transfers to such host nations:</proviso> <proviso><i>Provided further,</i> That the Department of Defense’s budget submission for fiscal year 1999 shall identify such sums anticipated in residual value settlements, and identify such construction, real property maintenance or base operating costs that shall be funded by the host nation through such credits:</proviso> <proviso><i>Provided further,</i> That all military construction projects to be executed from such accounts must be previously approved in a prior Act of Congress:</proviso> <proviso><i>Provided further,</i> That each<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> such executive agreement with a NATO member host nation shall be reported to the congressional defense committees, the Committee on International Relations of the House of Representatives and the Committee on Foreign Relations of the Senate 30 days prior to the conclusion and endorsement of any such agreement established under this provision.</proviso></content> </section> <section> <num value="8020"><inline class="smallCaps">Sec</inline>. 8020.</num> <content class="inline">None of the funds available to the Department of Defense may be used to demilitarize or dispose of M–1 Carbines, M–1 Garand rifles, M–14 rifles, .22 caliber rifles, .30 caliber rifles, or M–1911 pistols.</content> </section> <section> <num value="8021"><inline class="smallCaps">Sec</inline>. 8021.</num> <content class="inline">Notwithstanding any other provision of law, none of the funds appropriated by this Act shall be available to pay more than 50 per centum of an amount paid to any person under section 308 of title 37, United States Code, in a lump sum.</content> </section> <section> <num value="8022"><inline class="smallCaps">Sec</inline>. 8022.</num> <content class="inline">No more than $500,000 of the funds appropriated or made available in this Act shall be used during a single fiscal year for any single relocation of an organization, unit, activity or function of the Department of Defense into or within the National Capital Region: <proviso><i>Provided,</i> That the Secretary of Defense may waive this restriction on a case-by-case basis by certifying in writing to the congressional defense committees that such a relocation is required in the best interest of the Government.</proviso></content> </section> <section> <num value="8023"><inline class="smallCaps">Sec</inline>. 8023.</num> <content class="inline">A member of a reserve component whose unit or whose residence is located in a State which is not contiguous with another State is authorized to travel in a space required status on aircraft of the Armed Forces between home and place of inactive duty training, or place of duty in lieu of unit training assembly, when there is no road or railroad transportation (or combination of road and railroad transportation between those locations): <proviso><i>Provided,</i> That a member traveling in that status on a military aircraft pursuant to the authority provided in this section is not authorized to receive travel, transportation, or per diem allowances in connection with that travel.</proviso></content> </section> <section> <num value="8024"><inline class="smallCaps">Sec</inline>. 8024.</num> <content class="inline">In addition to funds provided elsewhere in this Act, $8,000,000 is appropriated only for incentive payments authorized by section 504 of the Indian Financing Act of 1974, 25 U.S.C. 1544: <proviso><i>Provided,</i> That these payments shall be available only to contractors which have submitted subcontracting plans pursuant to 15 U.S.C. 637(d), and according to regulations which shall be promulgated by the Secretary of Defense within 90 days of the passage of this Act:</proviso> <proviso><i>Provided further,</i> That contractors participating in the test program established by section 854 of Public Law 101–189 (15 U.S.C. 637 note) shall be eligible for the program established by section 504 of the Indian Financing Act of 1974 (25 U.S.C. 1544).</proviso></content> </section> <section> <num value="8025"><inline class="smallCaps">Sec</inline>. 8025.</num> <content class="inline">During the current fiscal year, none of the funds available to the Department of Defense may be used to procure or acquire (1) defensive handguns unless such handguns are the <page identifier="/us/stat/111/1226">111 STAT. 1226</page>M–9 or M–11 9mm Department of Defense standard handguns, or (2) offensive handguns except for the Special Operations Forces: <proviso><i>Provided,</i> That the foregoing shall not apply to handguns and ammunition for marksmanship competitions.</proviso></content> </section> <section> <num value="8026"><inline class="smallCaps">Sec</inline>. 8026.</num> <chapeau class="inline">During the current fiscal year, funds appropriated or otherwise available for any Federal agency, the Congress, the judicial branch, or the District of Columbia may be used for the pay, allowances, and benefits of an employee as defined by section 2105 of title 5, United States Code, or an individual employed by the government of the District of Columbia, permanent or temporary indefinite, who—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>is a member of a Reserve component of the Armed Forces, as described in section 10101 of title 10, United States Code, or the National Guard, as described in section 101 of title 32;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>performs, for the purpose of providing military aid to enforce the law or providing assistance to civil authorities in the protection or saving of life or property or prevention of injury—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Federal service under sections 331, 332, 333, or 12406 of title 10, or other provision of law, as applicable; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>full-time military service for his or her State, the District of Columbia, the Commonwealth of Puerto Rico, or a territory of the United States; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <chapeau>requests and is granted—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>leave under the authority of this section; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>annual leave, which may be granted without regard to the provisions of sections 5519 and 6323(b) of title 5, if such employee is otherwise entitled to such annual leave:</content></subparagraph> </paragraph> <continuation class="indent0 fontsize10"><proviso><i>Provided,</i> That any employee who requests leave under subsection (3)(A) for service described in subsection (2) of this section is entitled to such leave, subject to the provisions of this section and of the last sentence of section 6323(b) of title 5, and such leave shall be considered leave under section 6323(b) of title 5.</proviso></continuation> </section> <section> <num value="8027"><inline class="smallCaps">Sec</inline>. 8027.</num> <content class="inline">None of the funds appropriated by this Act shall be available to perform any cost study pursuant to the provisions of OMB Circular A–76 if the study being performed exceeds a period of 24 months after initiation of such study with respect to a single function activity or 48 months after initiation of such study for a multi-function activity.</content> </section> <section> <num value="8028"><inline class="smallCaps">Sec</inline>. 8028.</num> <content class="inline">Funds appropriated by this Act for the American Forces Information Service shall not be used for any national or international political or psychological activities.</content> </section> <section> <num value="8029"><inline class="smallCaps">Sec</inline>. 8029.</num> <content class="inline">Notwithstanding any other provision of law or regulation, the Secretary of Defense may adjust wage rates for civilian employees hired for certain health care occupations as authorized for the Secretary of Veterans Affairs by section 7455 of title 38, United States Code.</content> </section> <section> <num value="8030"><inline class="smallCaps">Sec</inline>. 8030.</num> <content class="inline">None of the funds appropriated or made available in this Act shall be used to reduce or disestablish the operation of the 53rd Weather Reconnaissance Squadron of the Air Force Reserve, if such action would reduce the WC–130 Weather Reconnaissance mission below the levels funded in this Act.</content> </section> <section> <num value="8031"><inline class="smallCaps">Sec</inline>. 8031.</num> <subsection class="inline"><num value="a">(a)</num> <content>Of the funds for the procurement of supplies or services appropriated by this Act, qualified nonprofit agencies for the blind or other severely handicapped shall be afforded the <page identifier="/us/stat/111/1227">111 STAT. 1227</page>maximum practicable opportunity to participate as subcontractors and suppliers in the performance of contracts let by the Department of Defense.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>During the current fiscal year, a business concern which has negotiated with a military service or defense agency a subcontracting plan for the participation by small business concerns pursuant to section 8(d) of the Small Business Act (15 U.S.C. 637(d)) shall be given credit toward meeting that subcontracting goal for any purchases made from qualified nonprofit agencies for the blind or other severely handicapped.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <content>For the purpose of this section, the phrase “qualified nonprofit agency for the blind or other severely handicapped” means a nonprofit agency for the blind or other severely handicapped that has been approved by the Committee for the Purchase from the Blind and Other Severely Handicapped under the Javits-Wagner-O’Day Act (41 U.S.C. 46–48).</content> </subsection> </section> <section> <num value="8032"><inline class="smallCaps">Sec</inline>. 8032.</num> <content class="inline">During the current fiscal year, net receipts pursuant to collections from third party payers pursuant to section 1095 of title 10, United States Code, shall be made available to the local facility of the uniformed services responsible for the collections and shall be over and above the facility’s direct budget amount.</content> </section> <section> <num value="8033"><inline class="smallCaps">Sec</inline>. 8033.</num> <content class="inline">During the current fiscal year, the Department of Defense is authorized to incur obligations of not to exceed $350,000,000 for purposes specified in section 2350j(c) of title 10, United States Code, in anticipation of receipt of contributions, only from the Government of Kuwait, under that section: <proviso><i>Provided,</i> That, upon receipt, such contributions from the Government of Kuwait shall be credited to the appropriations or fund which incurred such obligations.</proviso></content> </section> <section> <num value="8034"><inline class="smallCaps">Sec</inline>. 8034.</num> <content class="inline">Of the funds made available in this Act, not less than $26,247,000 shall be available for the Civil Air Patrol, of which $22,702,000 shall be available for operation and maintenance.</content> </section> <section> <num value="8035"><inline class="smallCaps">Sec</inline>. 8035.</num> <subsection class="inline"><num value="a">(a)</num> <content>None of the funds appropriated in this Act are available to establish a new Department of Defense (department) federally funded research and development center (FFRDC), either as a new entity, or as a separate entity administrated by an organization managing another FFRDC, or as a nonprofit membership corporation consisting of a consortium of other FFRDCs and other non-profit entities.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>Limitation on Compensation-Federally Funded Research and Development Center (FFRDC).—No member of a Board of Directors, Trustees, Overseers, Advisory Group, Special Issues Panel, Visiting Committee, or any similar entity of a defense FFRDC, and no paid consultant to any defense FFRDC, may be compensated for his or her services as a member of such entity, or as a paid consultant, except under the same conditions, and to the same extent, as members of the Defense Science Board: <proviso><i>Provided,</i> That a member of any such entity referred to previously in this subsection shall be allowed travel expenses and per diem as authorized under the Federal Joint Travel Regulations, when engaged in the performance of membership duties.</proviso></content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <content>Notwithstanding any other provision of law, none of the funds available to the department from any source during fiscal year 1998 may be used by a defense FFRDC, through a fee or other payment mechanism, for charitable contributions, for construction of new buildings, for payment of cost sharing for <page identifier="/us/stat/111/1228">111 STAT. 1228</page>projects funded by Government grants, or for absorption of contract overruns.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <content>Notwithstanding any other provision of law, of the funds available to the department during fiscal year 1998, not more than 6,206 staff years of technical effort (staff years) may be funded for defense FFRDCs: <proviso><i>Provided,</i> That of the specific amount referred to previously in this subsection, not more than 1,105 staff years may be funded for the defense studies and analysis FFRDCs.</proviso></content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <content>Notwithstanding any other provision of law, the Secretary of Defense shall control the total number of staff years to be performed by defense FFRDCs during fiscal year 1998 so as to reduce the total amounts appropriated in titles II, III, and IV of this Act by $71,800,000: <proviso><i>Provided,</i> That the total amounts appropriated in titles II, III, and IV of this Act are hereby reduced by $71,800,000 to reflect savings from the use of defense FFRDCs by the department.</proviso></content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> <content>Within 60 days after enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report presenting the specific amounts of staff years of technical effort to be allocated by the department for each defense FFRDC during fiscal year 1998: <proviso><i>Provided,</i> That, after the submission of the report required by this subsection, the department may not reallocate more than five per centum of an FFRDC’s staff years among other defense FFRDCs until 30 days after a detailed justification for any such reallocation is submitted to the congressional defense committees.</proviso></content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> <content>The Secretary of Defense shall, with the submission of the department’s fiscal year 1999 budget request, submit a report presenting the specific amounts of staff years of technical effort to be allocated for each defense FFRDC during that fiscal year.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h)</num> <content>No part of the reductions contained in subsection (e) of this section may be applied against any budget activity, activity group, subactivity group, line item, program element, program, project, subproject or activity which does not fund defense FFRDC activities within each appropriation account, and the reductions in subsection (e) shall be allocated on a proportional basis.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="i">(i)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> <content>Not later than 90 days after enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report listing the specific funding reductions allocated to each category listed in subsection (h) above pursuant to this section.</content> </subsection> </section> <section> <num value="8036"><inline class="smallCaps">Sec</inline>. 8036.</num> <chapeau class="inline">None of the funds in this or any other Act shall be available for the preparation of studies on—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>the cost effectiveness or feasibility of removal and transportation of unitary chemical weapons or agents from the 8 chemical storage sites within the continental United States to Johnston Atoll: <proviso><i>Provided,</i> That this prohibition shall not apply to General Accounting Office studies requested by a Member of Congress or a Congressional Committee; and</proviso></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>the potential future uses of the 9 chemical disposal facilities other than for the destruction of stockpile chemical munitions and as limited by section 1412(c)(2), Public Law 99–145: <proviso><i>Provided,</i> That this prohibition does not apply to future use studies for the CAMDS facility at Tooele, Utah.</proviso></content></paragraph> </section> <section> <num value="8037"><inline class="smallCaps">Sec</inline>. 8037.</num> <content class="inline">None of the funds appropriated or made available in this Act shall be used to procure carbon, alloy or armor steel plate for use in any Government-owned facility or property under <page identifier="/us/stat/111/1229">111 STAT. 1229</page>the control of the Department of Defense which were not melted and rolled in the United States or Canada: <proviso><i>Provided,</i> That these procurement restrictions shall apply to any and all Federal Supply Class 9515, American Society of Testing and Materials (ASTM) or American Iron and Steel Institute (AISI) specifications of carbon, alloy or armor steel plate:</proviso> <proviso><i>Provided further,</i> That the Secretary of the military department responsible for the procurement may waive this restriction on a case-by-case basis by certifying in writing to the Committees on Appropriations of the House of Representatives and the Senate that adequate domestic supplies are not available to meet Department of Defense requirements on a timely basis and that such an acquisition must be made in order to acquire capability for national security purposes:</proviso> <proviso><i>Provided further,</i> That these restrictions shall not apply to contracts which are in being as of the date of enactment of this Act.</proviso></content> </section> <section> <num value="8038"><inline class="smallCaps">Sec</inline>. 8038.</num> <content class="inline">For the purposes of this Act, the term “congressional defense committees” means the National Security Committee of the House of Representatives, the Armed Services Committee of the Senate, the Subcommittee on Defense of the Committee on Appropriations of the Senate, and the Subcommittee on National Security of the Committee on Appropriations of the House of Representatives.</content> </section> <section> <num value="8039"><inline class="smallCaps">Sec</inline>. 8039.</num> <content class="inline">During the current fiscal year, the Department of Defense may acquire the modification, depot maintenance and repair of aircraft, vehicles and vessels as well as the production of components and other Defense-related articles, through competition between Department of Defense depot maintenance activities and private firms: <proviso><i>Provided,</i> That the Senior Acquisition Executive<sidenote><p class="indent0 firstIndent0 fontsize8">Certification.</p></sidenote> of the military department or defense agency concerned, with power of delegation, shall certify that successful bids include comparable estimates of all direct and indirect costs for both public and private bids:</proviso> <proviso><i>Provided further,</i> That Office of Management and Budget Circular A–76 shall not apply to competitions conducted under this section.</proviso></content> </section> <section> <num value="8040"><inline class="smallCaps">Sec</inline>. 8040.</num> <subsection class="inline"><num value="a">(a)</num><paragraph class="inline"><num value="1">(1)</num> <content>If the Secretary of Defense, after consultation<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t41/s10b–2">41 USC 10b–2</ref>.</p></sidenote> with the United States Trade Representative, determines that a foreign country which is party to an agreement described in paragraph (2) has violated the terms of the agreement by discriminating against certain types of products produced in the United States that are covered by the agreement, the Secretary of Defense shall rescind the Secretary’s blanket waiver of the Buy American Act with respect to such types of products produced in that foreign country.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <content>An agreement referred to in paragraph (1) is any reciprocal defense procurement memorandum of understanding, between the United States and a foreign country pursuant to which the Secretary of Defense has prospectively waived the Buy American Act for certain products in that country.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>The Secretary of Defense shall submit to Congress a report<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> on the amount of Department of Defense purchases from foreign entities in fiscal year 1998. Such report shall separately indicate the dollar value of items for which the Buy American Act was waived pursuant to any agreement described in subsection (a)(2), the Trade Agreement Act of 1979 (19 U.S.C. 2501 et seq.), or any international agreement to which the United States is a party.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <content>For purposes of this section, the term “Buy American Act” means title III of the Act entitled “An Act making appropriations <page identifier="/us/stat/111/1230">111 STAT. 1230</page>for the Treasury and Post Office Departments for the fiscal year ending June 30, 1934, and for other purposes”, approved March 3, 1933 (41 U.S.C. 10a et seq.).</content> </subsection> </section> <section> <num value="8041"><inline class="smallCaps">Sec</inline>. 8041.</num> <content><p>The total amounts appropriated in titles II, III, and IV of this Act are hereby reduced by $300,000,000 to reflect savings from the use of advisory and assistance services by the Department of Defense: <proviso><i>Provided,</i> That the savings shall be applied to the following titles in the following amounts:</proviso></p> <list> <listItem><listContent class="indent1 fontsize10 depth0">Title II, Operation and Maintenance, $112,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Title III, Procurement, $62,000,000; and</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Title IV, Research, Development, Test and Evaluation, $126,000,000:</listContent></listItem> </list> <p class="indent0 fontsize10"><proviso><i>Provided further,</i> That the savings specified shall be applied only to funds budgeted to purchase advisory and assistance services:</proviso> <proviso><i>Provided further,</i> That the savings shall be applied on a pro-rata basis to each program, project and activity which included budget funds for advisory and assistance services.</proviso></p> </content></section> <section> <num value="8042"><inline class="smallCaps">Sec</inline>. 8042.</num> <content class="inline">Appropriations contained in this Act that remain available at the end of the current fiscal year as a result of energy cost savings realized by the Department of Defense shall remain available for obligation for the next fiscal year to the extent, and for the purposes, provided in section 2865 of title 10, United States Code.</content> </section> <section> <num value="8043"><inline class="smallCaps">Sec</inline>. 8043.</num> <content class="inline">Notwithstanding any other provision of this Act, the amounts provided in all appropriation accounts in titles III and IV of this Act are reduced by 1.5 percent: <proviso><i>Provided,</i> That these reductions shall be applied on a pro-rata basis to each line item, program element, program, project, subproject, and activity <sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote>within each appropriation account:</proviso> <proviso><i>Provided further,</i> That not later than 60 days after the enactment of this Act, the Undersecretary of Defense (Comptroller) shall submit a report to the congressional defense committees listing the specific funding reductions allocated to each category listed in the preceding proviso pursuant to this section.</proviso></content> </section> </level> <level> <heading class="centered">(<inline class="smallCaps">including transfer of funds</inline>)</heading> <section> <num value="8044"><inline class="smallCaps">Sec</inline>. 8044.</num> <content class="inline">Amounts deposited during the current fiscal year to the special account established under 40 U.S.C. 485(h))(2) and to the special account established under 10 U.S.C. 2667(d)(1) are appropriated and shall be available until transferred by the Secretary of Defense to current applicable appropriations or funds of the Department of Defense under the terms and conditions specified by 40 U.S.C. 485(h)(2)(A) and (B) and 10 U.S.C. 2667(d)(1)(B), to be merged with and to be available for the same time period and the same purposes as the appropriation to which transferred.</content> </section> <section> <num value="8045"><inline class="smallCaps">Sec</inline>. 8045.</num> <content class="inline">During the current fiscal year, appropriations available to the Department of Defense may be used to reimburse a member of a reserve component of the Armed Forces who is not otherwise entitled to travel and transportation allowances and who occupies transient government housing while performing active duty for training or inactive duty training: <proviso><i>Provided,</i> That such members may be provided lodging in kind if transient government quarters are unavailable as if the member was entitled to such allowances under subsection (a) of section 404 of title 37, United States Code:</proviso> <proviso><i>Provided further,</i> That if lodging in kind is provided, any authorized service charge or cost of such lodging may be paid <page identifier="/us/stat/111/1231">111 STAT. 1231</page>directly from funds appropriated for operation and maintenance of the reserve component of the member concerned.</proviso></content> </section> <section> <num value="8046"><inline class="smallCaps">Sec</inline>. 8046.</num> <content class="inline">The President shall include with each budget for<sidenote><p class="indent0 firstIndent0 fontsize8">President.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s221">10 USC 221 note</ref>.</p></sidenote> a fiscal year submitted to the Congress under section 1105 of title 31, United States Code, materials that shall identify clearly and separately the amounts requested in the budget for appropriation for that fiscal year for salaries and expenses related to administrative activities of the Department of Defense, the military departments, and the Defense Agencies.</content> </section> <section> <num value="8047"><inline class="smallCaps">Sec</inline>. 8047.</num> <content class="inline">Notwithstanding any other provision of law, funds available for “Drug Interdiction and Counter-Drug Activities, Defense” may be obligated for the Young Marines program.</content> </section> <section> <num value="8048"><inline class="smallCaps">Sec</inline>. 8048.</num> <content class="inline">Notwithstanding any other provision of this Act, the total amount appropriated in title IV of this Act is hereby reduced by $474,000,000: <proviso><i>Provided,</i> That each program element, program, project, subproject, and activity funded in title IV of this Act shall be allocated a pro-rata share of any of the reductions made by this section:</proviso> <proviso><i>Provided further,</i> That not later than 60<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> days after the enactment of this Act, the Undersecretary of Defense (Comptroller) shall submit a report to the congressional defense committees listing the specific funding reductions allocated to each category listed in the preceding proviso pursuant to this section.</proviso></content> </section> <section> <num value="8049"><inline class="smallCaps">Sec</inline>. 8049.</num> <content class="inline">During the current fiscal year, amounts contained in the Department of Defense Overseas Military Facility Investment Recovery Account established by section 2921(c)(1) of the National Defense Authorization Act of 1991 (Public Law 101–510; 10 U.S.C. 2687 note) shall be available until expended for the payments specified by section 2921(c)(2) of that Act.</content> </section> <section> <num value="8050"><inline class="smallCaps">Sec</inline>. 8050.</num> <content class="inline">Of the funds appropriated or otherwise made available by this Act, not more than $119,200,000 shall be available for payment of the operating costs of NATO Headquarters: <proviso><i>Provided,</i> That the Secretary of Defense may waive this section for Department of Defense support provided to NATO forces in and around the former Yugoslavia.</proviso></content> </section> <section> <num value="8051"><inline class="smallCaps">Sec</inline>. 8051.</num> <content class="inline">During the current fiscal year, appropriations which are available to the Department of Defense for operation and maintenance may be used to purchase items having an investment item unit cost of not more than $100,000.</content> </section> <section> <num value="8052"><inline class="smallCaps">Sec</inline>. 8052.</num> <subsection class="inline"><num value="a">(a)</num> <content>During the current fiscal year, none of the appropriations or funds available to the Department of Defense Working Capital Funds shall be used for the purchase of an investment item for the purpose of acquiring a new inventory item for sale or anticipated sale during the current fiscal year or a subsequent fiscal year to customers of the Department of Defense Working Capital Funds if such an item would not have been chargeable to the Department of Defense Business Operations Fund during fiscal year 1994 and if the purchase of such an investment item would be chargeable during the current fiscal year to appropriations made to the Department of Defense for procurement.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>The fiscal year 1999 budget request for the Department of Defense as well as all justification material and other documentation supporting the fiscal year 1999 Department of Defense budget shall be prepared and submitted to the Congress on the basis that any equipment which was classified as an end item and funded in a procurement appropriation contained in this Act shall be budgeted for in a proposed fiscal year 1999 procurement appropriation and not in the supply management business area or any other <page identifier="/us/stat/111/1232">111 STAT. 1232</page>area or category of the Department of Defense Working Capital Funds.</content> </subsection> </section> <section> <num value="8053"><inline class="smallCaps">Sec</inline>. 8053.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2241">10 USC 2241 note</ref>.</p></sidenote> <content class="inline">None of the funds provided in this Act and hereafter shall be available for use by a military department to modify an aircraft, weapon, ship or other item of equipment, that the military department concerned plans to retire or otherwise dispose of within 5 years after completion of the modification: <proviso><i>Provided,</i> That this prohibition shall not apply to safety modifications:</proviso> <proviso><i>Provided further,</i> That this prohibition may be waived by the Secretary of a military department if the Secretary determines it is in the best national security interest of the United States to provide such waiver and so notifies the congressional defense committees in writing.</proviso></content> </section> <section> <num value="8054"><inline class="smallCaps">Sec</inline>. 8054.</num> <content class="inline">None of the funds appropriated by this Act for programs of the Central Intelligence Agency shall remain available for obligation beyond the current fiscal year, except for funds appropriated for the Reserve for Contingencies, which shall remain available until September 30, 1999.</content> </section> <section> <num value="8055"><inline class="smallCaps">Sec</inline>. 8055.</num> <content class="inline">Notwithstanding any other provision of law, funds made available in this Act for the Defense Intelligence Agency may be used for the design, development, and deployment of General Defense Intelligence Program intelligence communications and intelligence information systems for the Services, the Unified and Specified Commands, and the component commands.</content> </section> <section> <num value="8056"><inline class="smallCaps">Sec</inline>. 8056.</num> <content class="inline">Of the funds appropriated by the Department of Defense under the heading “Operation and Maintenance, Defense-Wide”, not less than $8,000,000 shall be made available only for the mitigation of environmental impacts, including training and technical assistance to tribes, related administrative support, the gathering of information, documenting of environmental damage, and developing a system for prioritization of mitigation and cost to complete estimates for mitigation, on Indian lands resulting from Department of Defense activities.</content> </section> <section> <num value="8057"><inline class="smallCaps">Sec</inline>. 8057.</num> <content class="inline">Amounts collected for the use of the facilities of the National Science Center for Communications and Electronics during the current fiscal year pursuant to section 1459(g) of the Department of Defense Authorization Act, 1986, and deposited to the special account established under subsection 1459(g)(2) of that Act are appropriated and shall be available until expended for the operation and maintenance of the Center as provided for in subsection 1459(g)(2).</content> </section> <section> <num value="8058"><inline class="smallCaps">Sec</inline>. 8058.</num> <content class="inline">None of the funds appropriated in this Act may be used to fill the commander’s position at any military medical facility with a health care professional unless the prospective candidate can demonstrate professional administrative skills.</content> </section> <section> <num value="8059"><inline class="smallCaps">Sec</inline>. 8059.</num> <subsection class="inline"><num value="a">(a)</num> <content>None of the funds appropriated in this Act may be expended by an entity of the Department of Defense unless the entity, in expending the funds, complies with the Buy American Act. For purposes of this subsection, the term “Buy American Act” means title III of the Act entitled “An Act making appropriations for the Treasury and Post Office Departments for the fiscal year ending June 30, 1934, and for other purposes”, approved March 3, 1933 (41 U.S.C. 10a et seq.).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>If the Secretary of Defense determines that a person has been convicted of intentionally affixing a label bearing a “Made in America” inscription to any product sold in or shipped to the United States that is not made in America, the Secretary shall <page identifier="/us/stat/111/1233">111 STAT. 1233</page>determine, in accordance with section 2410f of title 10, United States Code, whether the person should be debarred from contracting with the Department of Defense.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <content>In the case of any equipment or products purchased with appropriations provided under this Act, it is the sense of the Congress that any entity of the Department of Defense, in expending the appropriation, purchase only American-made equipment and products, provided that American-made equipment and products are cost-competitive, quality-competitive, and available in a timely fashion.</content> </subsection> </section> <section> <num value="8060"><inline class="smallCaps">Sec</inline>. 8060.</num> <chapeau class="inline">None of the funds appropriated by this Act shall be available for a contract for studies, analysis, or consulting services entered into without competition on the basis of an unsolicited proposal unless the head of the activity responsible for the procurement determines—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>as a result of thorough technical evaluation, only one source is found fully qualified to perform the proposed work; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>the purpose of the contract is to explore an unsolicited proposal which offers significant scientific or technological promise, represents the product of original thinking, and was submitted in confidence by one source; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>the purpose of the contract is to take advantage of unique and significant industrial accomplishment by a specific concern, or to insure that a new product or idea of a specific concern is given financial support:</content></paragraph> <continuation class="indent0 fontsize10"><proviso><i>Provided,</i> That this limitation shall not apply to contracts in an amount of less than $25,000, contracts related to improvements of equipment that is in development or production, or contracts as to which a civilian official of the Department of Defense, who has been confirmed by the Senate, determines that the award of such contract is in the interest of the national defense.</proviso></continuation> </section> <section> <num value="8061"><inline class="smallCaps">Sec</inline>. 8061.</num> <subsection class="inline"><num value="a">(a)</num> <chapeau>Except as provided in subsections (b) and (c), none of the funds made available by this Act may be used—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>to establish a field operating agency; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>to pay the basic pay of a member of the Armed Forces or civilian employee of the department who is transferred or reassigned from a headquarters activity if the member or employee’s place of duty remains at the location of that headquarters.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>The Secretary of Defense or Secretary of a military department may waive the limitations in subsection (a), on a case-by-case basis, if the Secretary determines, and certifies to the Committees on Appropriations of the House of Representatives and Senate that the granting of the waiver will reduce the personnel requirements or the financial requirements of the department.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <content>This section does not apply to field operating agencies funded within the National Foreign Intelligence Program.</content> </subsection> </section> <section> <num value="8062"><inline class="smallCaps">Sec</inline>. 8062.</num> <content class="inline">Funds appropriated by this Act for intelligence activities are deemed to be specifically authorized by the Congress for purposes of section 504 of the National Security Act of 1947 (50 U.S.C. 414) during fiscal year 1998 until the enactment of the Intelligence Authorization Act for Fiscal Year 1998.</content> </section> <section> <num value="8063"><inline class="smallCaps">Sec</inline>. 8063.</num> <content class="inline">Notwithstanding section 303 of Public Law 96487 or any other provision of law, the Secretary of the Navy is authorized to lease real and personal property at Naval Air Facility, <page identifier="/us/stat/111/1234">111 STAT. 1234</page>Adak, Alaska, pursuant to 10 U.S.C. 2667(f), for commercial, industrial or other purposes.</content> </section> </level> <level> <heading class="centered">(<inline class="smallCaps">rescissions</inline>)</heading> <section> <num value="8064"><inline class="smallCaps">Sec</inline>. 8064.</num> <content class="inline">Of the funds provided in Department of Defense Appropriations Acts, the following funds are hereby rescinded from the following accounts in the specified amounts: <list> <listItem><listContent class="indent1 fontsize10 depth0">“Shipbuilding and Conversion, Navy, 1996/2000”, $35,600,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Other Procurement, Navy, 1996/1998”, $3,300,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Aircraft Procurement, Army, 1997/1999”, $5,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Procurement of Ammunition, Army, 1997/1999”, $5,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Other Procurement, Army, 1997/1999”, $6,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Other Procurement, Navy, 1997/1999”, $2,200,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Aircraft Procurement, Navy, 1997/1999”, $24,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Research, Development, Test and Evaluation, Army, 1997/ 1998”, $6,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Research, Development, Test and Evaluation, Navy, 1997/ 1998”, $40,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Research, Development, Test and Evaluation, Air Force, 1997/1998”, $25,000,000; and</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Research, Development, Test and Evaluation, Defense-Wide, 1997/1998”, $24,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Research, Development, Test and Evaluation, Defense-Wide, 1997/1998”, $24,000,000.</listContent></listItem> </list> </content></section> <section> <num value="8065"><inline class="smallCaps">Sec</inline>. 8065.</num> <content class="inline">None of the funds available in this Act may be used to reduce the authorized positions for military (civilian) technicians of the Army National Guard, the Air National Guard, Army Reserve and Air Force Reserve for the purpose of applying any administratively imposed civilian personnel ceiling, freeze, or reduction on military (civilian) technicians, unless such reductions are a direct result of a reduction in military force structure.</content> </section> <section> <num value="8066"><inline class="smallCaps">Sec</inline>. 8066.</num> <content class="inline">None of the funds appropriated or otherwise made available in this Act may be obligated or expended for assistance to the Democratic People’s Republic of North Korea unless specifically appropriated for that purpose.</content> </section> <section> <num value="8067"><inline class="smallCaps">Sec</inline>. 8067.</num> <content class="inline">During the current fiscal year, funds appropriated in this Act are available to compensate members of the National Guard for duty performed pursuant to a plan submitted by a Governor of a State and approved by the Secretary of Defense under section 112 of title 32, United States Code: <proviso><i>Provided,</i> That during the performance of such duty, the members of the National Guard shall be under State command and control:</proviso> <proviso><i>Provided further,</i> That such duty shall be treated as full-time National Guard duty for purposes of sections 12602(a)(2) and (b)(2) of title 10, United States Code.</proviso></content> </section> <section> <num value="8068"><inline class="smallCaps">Sec</inline>. 8068.</num> <content class="inline">Funds appropriated in this Act for operation and maintenance of the Military Departments, Unified and Specified Commands and Defense Agencies shall be available for reimbursement of pay, allowances and other expenses which would otherwise be incurred against appropriations for the National Guard and Reserve when members of the National Guard and Reserve provide intelligence support to Unified Commands, Defense Agencies and Joint Intelligence Activities, including the activities and programs included within the General Defense Intelligence Program and the Consolidated Cryptologic Program: <proviso><i>Provided,</i> That nothing in this section authorizes deviation from established Reserve and National Guard personnel and training procedures.</proviso><page identifier="/us/stat/111/1235">111 STAT. 1235</page></content> </section> <section> <num value="8069"><inline class="smallCaps">Sec</inline>. 8069.</num> <content class="inline">During the current fiscal year, none of the funds appropriated in this Act may be used to reduce the civilian medical and medical support personnel assigned to military treatment facilities below the September 30, 1997 level: <proviso><i>Provided,</i> That the Service Surgeons General may waive this section by certifying to the congressional defense committees that the beneficiary population is declining in some catchment areas and civilian strength reductions may be consistent with responsible resource stewardship and capitation-based budgeting.</proviso></content> </section> </level> <level> <heading class="centered">(<inline class="smallCaps">including transfer of funds</inline>)</heading> <section> <num value="8070"><inline class="smallCaps">Sec</inline>. 8070.</num> <content class="inline">None of the funds appropriated in this Act may be transferred to or obligated from the Pentagon Reservation Maintenance Revolving Fund, unless the Secretary of Defense certifies that the total cost for the planning, design, construction and installation of equipment for the renovation of the Pentagon Reservation will not exceed $1,118,000,000.</content> </section> <section> <num value="8071"><inline class="smallCaps">Sec</inline>. 8071.</num> <subsection class="inline"><num value="a">(a)</num> <content>None of the funds available to the Departmen<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s374">10 USC 374 note</ref>.</p></sidenote>t of Defense for any fiscal year for drug interdiction or counterdrug activities may be transferred to any other department or agency of the United States except as specifically provided in an appropriations law.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>None of the funds available to the Central Intelligence<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t50/s403f">50 USC 403f note</ref>.</p></sidenote> Agency for any fiscal year for drug interdiction and counter-drug activities may be transferred to any other department or agency of the United States except as specifically provided in an appropriations law.</content> </subsection> </section> </level> <level> <heading class="centered">(<inline class="smallCaps">transfer of funds</inline>)</heading> <section> <num value="8072"><inline class="smallCaps">Sec</inline>. 8072.</num> <content class="inline">Appropriations available in this Act under the heading “Operation and Maintenance, Defense-Wide” for increasing energy and water efficiency in Federal buildings may, during their period of availability, be transferred to other appropriations or funds of the Department of Defense for projects related to increasing energy and water efficiency, to be merged with and to be available for the same general purposes, and for the same time period, as the appropriation or fund to which transferred.</content> </section> <section> <num value="8073"><inline class="smallCaps">Sec</inline>. 8073.</num> <content class="inline">None of the funds appropriated by this Act may be used for the procurement of ball and roller bearings other than those produced by a domestic source and of domestic origin: <proviso><i>Provided,</i> That the Secretary of the military department responsible for such procurement may waive this restriction on a case-by-case basis by certifying in writing to the Committees on Appropriations of the House of Representatives and the Senate, that adequate domestic supplies are not available to meet Department of Defense requirements on a timely basis and that such an acquisition must be made in order to acquire capability for national security purposes.</proviso></content> </section> <section> <num value="8074"><inline class="smallCaps">Sec</inline>. 8074.</num> <content class="inline">Notwithstanding any other provision of law, funds available to the Department of Defense shall be made available to provide transportation of medical supplies and equipment, on a nonreimbursable basis, to American Samoa: <proviso><i>Provided,</i> That notwithstanding any other provision of law, funds available to the Department of Defense shall be made available to provide transportation of medical supplies and equipment, on a nonreimbursable <page identifier="/us/stat/111/1236">111 STAT. 1236</page>basis, to the Indian Health Service when it is in conjunction with a civil-military project.</proviso></content> </section> <section> <num value="8075"><inline class="smallCaps">Sec</inline>. 8075.</num> <content class="inline">None of the funds in this Act may be used to purchase any supercomputer which is not manufactured in the United States, unless the Secretary of Defense certifies to the congressional defense committees that such an acquisition must be made in order to acquire capability for national security purposes that is not available from United States manufacturers.</content> </section> <section> <num value="8076"><inline class="smallCaps">Sec</inline>. 8076.</num> <content class="inline">Notwithstanding any other provision of law, the Naval shipyards of the United States shall be eligible to participate in any manufacturing extension program financed by funds appropriated in this or any other Act.</content> </section> <section> <num value="8077"><inline class="smallCaps">Sec</inline>. 8077.</num> <content class="inline">Notwithstanding any other provision of law, each contract awarded by the Department of Defense during the current fiscal year for construction or service performed in whole or in part in a State which is not contiguous with another State and has an unemployment rate in excess of the national average rate of unemployment as determined by the Secretary of Labor, shall include a provision requiring the contractor to employ, for the purpose of performing that portion of the contract in such State that is not contiguous with another State, individuals who are residents of such State and who, in the case of any craft or trade, possess or would be able to acquire promptly the necessary skills: <proviso><i>Provided,</i> That the Secretary of Defense may waive the requirements of this section, on a case-by-case basis, in the interest of national security.</proviso></content> </section> <section> <num value="8078"><inline class="smallCaps">Sec</inline>. 8078.</num> <content class="inline">During the current fiscal year, the Army shall use the former George Air Force Base as the airhead for the National Training Center at Fort Irwin: <proviso><i>Provided,</i> That none of the funds in this Act shall be obligated or expended to transport Army personnel into Edwards Air Force Base for training rotations at the National Training Center.</proviso></content> </section> <section> <num value="8079"><inline class="smallCaps">Sec</inline>. 8079.</num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> <subsection class="inline"><num value="a">(a)</num> <content>The Secretary of Defense shall submit, on a quarterly basis, a report to the congressional defense committees, the Committee on International Relations of the House of Representatives and the Committee on Foreign Relations of the Senate setting forth all costs (including incremental costs) incurred by the Department of Defense during the preceding quarter in implementing or supporting resolutions of the United Nations Security Council, including any such resolution calling for international sanctions, international peacekeeping operations, and humanitarian missions undertaken by the Department of Defense. The quarterly report shall include an aggregate of all such Department of Defense costs by operation or mission.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>The Secretary of Defense shall detail in the quarterly reports all efforts made to seek credit against past United Nations expenditures and all efforts made to seek compensation from the United Nations for costs incurred by the Department of Defense in implementing and supporting United Nations activities.</content> </subsection> </section> <section> <num value="8080"><inline class="smallCaps">Sec</inline>. 8080.</num> <subsection class="inline"><num value="a">(a)</num> <content>Limitation on Transfer of Defense Articles and Services.—Notwithstanding any other provision of law, none of the funds available to the Department of Defense for the current fiscal year may be obligated or expended to transfer to another nation or an international organization any defense articles or services (other than intelligence services) for use in the activities described in subsection (b) unless the congressional defense committees, the Committee on International Relations of the House of <page identifier="/us/stat/111/1237">111 STAT. 1237</page>Representatives, and the Committee on Foreign Relations of the Senate are notified 15 days in advance of such transfer.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <chapeau>Covered Activities.—This section applies to—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>any international peacekeeping or peace-enforcement operation under the authority of chapter VI or chapter VII of the United Nations Charter under the authority of a United Nations Security Council resolution; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>any other international peacekeeping, peace-enforcement, or humanitarian assistance operation.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <chapeau>Required Notice.—A notice under subsection (a) shall include the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>A description of the equipment, supplies, or services to be transferred.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>A statement of the value of the equipment, supplies, or services to be transferred.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <chapeau>In the case of a proposed transfer of equipment or supplies—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>a statement of whether the inventory requirements of all elements of the Armed Forces (including the reserve components) for the type of equipment or supplies to be transferred have been met; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>a statement of whether the items proposed to be transferred will have to be replaced and, if so, how the President proposes to provide funds for such replacement.</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="8081"><inline class="smallCaps">Sec</inline>. 8081.</num> <content class="inline">To the extent authorized by subchapter VI of chapter<sidenote><p class="indent0 firstIndent0 fontsize8">Loans.</p></sidenote> 148 of title 10, United States Code, the Secretary of Defense shall issue loan guarantees in support of United States defense exports not otherwise provided for: <proviso><i>Provided,</i> That the total contingent liability of the United States for guarantees issued under the authority of this section may not exceed $15,000,000,000:</proviso> <proviso><i>Provided further,</i> That the exposure fees charged and collected by the Secretary for each guarantee, shall be paid by the country involved and shall not be financed as part of a loan guaranteed by the United States:</proviso> <proviso><i>Provided further,</i> That the Secretary shall provide<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> quarterly reports to the Committees on Appropriations, Armed Services and Foreign Relations of the Senate and the Committees on Appropriations, National Security and International Relations in the House of Representatives on the implementation of this program:</proviso> <proviso><i>Provided further,</i> That amounts charged for administrative fees and deposited to the special account provided for under section 2540c(d) of title 10, shall be available for paying the costs of administrative expenses of the Department of Defense that are attributable to the loan guarantee program under subchapter VI of chapter 148 of title 10.</proviso></content> </section> <section> <num value="8082"><inline class="smallCaps">Sec</inline>. 8082.</num> <content class="inline">None of the funds available to the Department of Defense shall be obligated or expended to make a financial contribution to the United Nations for the cost of an United Nations peacekeeping activity (whether pursuant to assessment or a voluntary contribution) or for payment of any United States arrearage to the United Nations.</content> </section> <section> <num value="8083"><inline class="smallCaps">Sec</inline>. 8083.</num> <chapeau>None of the funds available to the Department of Defense under this Act shall be obligated or expended to pay a contractor under a contract with the Department of Defense for costs of any amount paid by the contractor to an employee when—<page identifier="/us/stat/111/1238">111 STAT. 1238</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>such costs are for a bonus or otherwise in excess of the normal salary paid by the contractor to the employee; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>such bonus is part of restructuring costs associated with a business combination.</content></paragraph> </section> <section> <num value="8084"><inline class="smallCaps">Sec</inline>. 8084.</num> <subsection class="inline"><num value="a">(a)</num> <content>None of the funds appropriated or otherwise made available in this Act may be used to transport or provide for the transportation of chemical munitions or agents to the Johnston Atoll for the purpose of storing or demilitarizing such munitions or agents.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>The prohibition in subsection (a) shall not apply to any obsolete World War II chemical munition or agent of the United States found in the World War II Pacific Theater of Operations.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <content>The President may suspend the application of subsection (a) during a period of war in which the United States is a party.</content> </subsection> </section> <section> <num value="8085"><inline class="smallCaps">Sec</inline>. 8085.</num> <content class="inline">None of the funds provided in title II of this Act for “Former Soviet Union Threat Reduction” may be obligated or expended to finance housing for any individual who was a member of the military forces of the Soviet Union or for any individual who is or was a member of the military forces of the Russian Federation.</content> </section> <section> <num value="8086"><inline class="smallCaps">Sec</inline>. 8086.</num> <content class="inline">During the current fiscal year, no more than $10,000,000 of appropriations made in this Act under the heading “Operation and Maintenance, Defense-Wide” may be transferred to appropriations available for the pay of military personnel, to be merged with, and to be available for the same time period as the appropriations to which transferred, to be used in support of such personnel in connection with support and services for eligible organizations and activities outside the Department of Defense pursuant to section 2012 of title 10, United States Code.</content> </section> <section> <num value="8087"><inline class="smallCaps">Sec</inline>. 8087.</num> <content class="inline">For purposes of section 1553(b) of title 31, United States Code, any subdivision of appropriations made in this Act under the heading “Shipbuilding and Conversion, Navy” shall be considered to be for the same purpose as any subdivision under the heading “Shipbuilding and Conversion, Navy” appropriations in any prior year, and the 1 percent limitation shall apply to the total amount of the appropriation.</content> </section> <section> <num value="8088"><inline class="smallCaps">Sec</inline>. 8088.</num> <content class="inline">Notwithstanding 31 U.S.C. 1552(a), not more than $14,000,000 appropriated under the heading “Aircraft Procurement, Air Force” in Public Law 102–396 which was available and obligated for the B–2 Aircraft Program shall remain available for expenditure and for adjusting obligations for such program until September 30, 2003.</content> </section> <section> <num value="8089"><inline class="smallCaps">Sec</inline>. 8089.</num> <chapeau class="inline">During the current fiscal year, in the case of an appropriation account of the Department of Defense for which the period of availability for obligation has expired or which has closed under the provisions of section 1552 of title 31, United States Code, and which has a negative unliquidated or unexpended balance, an obligation or an adjustment of an obligation may be charged to any current appropriation account for the same purpose as the expired or closed account if—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>the obligation would have been properly chargeable (except as to amount) to the expired or closed account before the end of the period of availability or closing of that account;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>the obligation is not otherwise properly chargeable to any current appropriation account of the Department of Defense; and<page identifier="/us/stat/111/1239">111 STAT. 1239</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>in the case of an expired account, the obligation is not chargeable to a current appropriation of the Department of Defense under the provisions of section 1405(b)(8) of the National Defense Authorization Act for Fiscal Year 1991, Public Law 101–510, as amended (31 U.S.C. 1551 note): <proviso><i>Provided,</i> That in the case of an expired account, if subsequent review or investigation discloses that there was not in fact a negative unliquidated or unexpended balance in the account, any charge to a current account under the authority of this section shall be reversed and recorded against the expired account:</proviso> <proviso><i>Provided further,</i> That the total amount charged to a current appropriation under this section may not exceed an amount equal to 1 percent of the total appropriation for that account.</proviso></content></paragraph> </section> </level> <level> <heading class="centered">(<inline class="smallCaps">transfer of funds</inline>)</heading> <section> <num value="8090"><inline class="smallCaps">Sec</inline>. 8090.</num> <content><p>Upon enactment of this Act, the Secretary of Defense shall make the following transfers of funds: <proviso><i>Provided,</i> That the amounts transferred shall be available for the same purposes as the appropriations to which transferred, and for the same time period as the appropriation from which transferred:</proviso> <proviso><i>Provided further,</i> That the amounts shall be transferred between the following appropriations in the amount specified:</proviso></p> <list> <listItem><listContent class="indent1 fontsize10 depth0">From:</listContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">Under the heading, “Shipbuilding and Conversion, Navy, 1989/2000”:</listContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">SSN–688 attack submarine program, $3,000,000; DDG–51 destroyer program, $1,500,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">LHD–1 amphibious assault ship program, $8,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">T–AO fleet oiler program, $3,453,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">AOE combat support ship program, $3,600,000; and</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">For craft, outfitting, and post delivery, $2,019,000;</listContent></listItem> </list> </listItem></list> </listItem> <listItem><listContent class="indent1 fontsize10 depth0">To:</listContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">Under the heading, “Shipbuilding and Conversion, Navy, 1989/2000”:</listContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">SSN–21 attack submarine program, $21,572,000;</listContent></listItem> </list> </listItem> </list> </listItem> <listItem><listContent class="indent1 fontsize10 depth0">From:</listContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">Under the heading, “Shipbuilding and Conversion, Navy, 1991/2001”:</listContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">DDG–51 destroyer program, $1,060,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">LHD–1 amphibious assault ship program, $1,600,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">LSD–41 cargo variant ship program, $2,666,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">AOE combat support ship program, $7,307,000; and</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">For craft, outfitting, and post delivery, $12,000,000;</listContent></listItem> </list> </listItem> </list> </listItem> <listItem><listContent class="indent1 fontsize10 depth0">To:</listContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">Under the heading, “Shipbuilding and Conversion, Navy, 1991/2001”:</listContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">SSN–21 attack submarine program, $24,633,000;<page identifier="/us/stat/111/1240">111 STAT. 1240</page></listContent></listItem> </list> </listItem> </list> </listItem> <listItem><listContent class="indent1 fontsize10 depth0">From:</listContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">Under the heading, “Shipbuilding and Conversion, Navy, 1996/2000”:</listContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">LHD–1 amphibious assault ship program, $5,592,000;</listContent></listItem> </list> </listItem> </list> </listItem> <listItem><listContent class="indent1 fontsize10 depth0">To:</listContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">Under the heading, “Shipbuilding and Conversion, Navy, 1996/2000”:</listContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">SSN–21 attack submarine program, $5,592,000;</listContent></listItem> </list> </listItem> </list> </listItem> <listItem><listContent class="indent1 fontsize10 depth0">From:</listContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">Under the heading, “Shipbuilding and Conversion, Navy, 1994/1998”:</listContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">LHD–1 amphibious assault ship program, $400,000; and</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">DDG–51 destroyer program, $1,054,000;</listContent></listItem> </list> </listItem> </list> </listItem> <listItem><listContent class="indent1 fontsize10 depth0">From:</listContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">Under the heading, “Shipbuilding and Conversion, Navy, 1995/1999”:</listContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">For craft, outfitting, and post delivery, conversions, and first destination transportation, $715,000;</listContent></listItem> </list> </listItem> </list> </listItem> <listItem><listContent class="indent1 fontsize10 depth0">From:</listContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">Under the heading, “Shipbuilding and Conversion, Navy, 1996/2000”:</listContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">LHD–1 amphibious assault ship program, $17,513,000; and</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">For craft, outfitting, and post delivery, conversions, and first destination transportation, $878,000;</listContent></listItem> </list> </listItem> </list> </listItem> <listItem><listContent class="indent1 fontsize10 depth0">From:</listContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">Under the heading, “Shipbuilding and Conversion, Navy, 1997/2001”:</listContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">For craft, outfitting, and post delivery, conversions, and first destination transportation, $3,600,000;</listContent></listItem> </list> </listItem> </list> </listItem> <listItem><listContent class="indent1 fontsize10 depth0">To:</listContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">Under the heading, “Shipbuilding and Conversion, Navy, 1997/2001”:</listContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">DDG–51 destroyer program, $24,160,000;</listContent></listItem> </list> </listItem> </list> </listItem> <listItem><listContent class="indent1 fontsize10 depth0">From:</listContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">Under the heading, “Shipbuilding and Conversion, Navy, 1996/2000”:</listContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">Fast Patrol Boat, $9,500,000;</listContent></listItem> </list> </listItem> </list> </listItem> <listItem><listContent class="indent1 fontsize10 depth0">To:</listContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">“Research, Development, Test and Evaluation, Navy, 1998/1999”, $9,500,000;</listContent></listItem> </list> </listItem> <listItem><listContent class="indent1 fontsize10 depth0">From:</listContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">Under the heading, “Shipbuilding and Conversion, Navy, 1997/2001”:</listContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">Oceanographic ship SWATH, $45,000,000;</listContent></listItem> </list> </listItem> </list> </listItem> <listItem><listContent class="indent1 fontsize10 depth0">To:</listContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">“Research, Development, Test and Evaluation, Navy, 1998/1999”, $45,000,000;</listContent></listItem> </list> </listItem> <listItem><listContent class="indent1 fontsize10 depth0">From:</listContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">“Aircraft Procurement, Air Force, 1997/1999”, $73,531,000;</listContent></listItem> </list> </listItem> <listItem><listContent class="indent1 fontsize10 depth0">To:</listContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">“Research, Development, Test and Evaluation, Air Force, 1997/1998”, $73,531,000:<page identifier="/us/stat/111/1241">111 STAT. 1241</page></listContent></listItem> </list> </listItem> </list> <p class="indent0 fontsize10"><proviso><i>Provided further,</i> That notwithstanding any other provision of law, to facilitate a full and final settlement of all claims under contracts N00024–79–C–2614 and N00024–77–C–2031, the Secretary of the Navy may offset the amount of $1,660,680.84, owed by the Navy under contract N00024–79–C–2614 for the T–ARC–7 against an equal amount, $1,660,680.84, owed to the Navy under contract N00024–77–C–2031 for the AD 43.</proviso></p> </content></section> <section> <num value="8091"><inline class="smallCaps">Sec</inline>. 8091.</num> <content class="inline">The Under Secretary of Defense (Comptroller) shall<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> submit to the congressional defense committees by February 1, 1998 a detailed report identifying, by amount and by separate budget activity, activity group, subactivity group, line item, program element, program, project, subproject, and activity, any activity for which the fiscal year 1999 budget request was reduced because Congress appropriated funds above the President’s budget request for that specific activity for fiscal year 1998.</content> </section> <section> <num value="8092"><inline class="smallCaps">Sec</inline>. 8092.</num> <subsection class="inline"><num value="a">(a)</num> <chapeau>None of the funds available to the Department of Defense under this Act may be obligated or expended to reimburse a defense contractor for restructuring costs associated with a business combination of the defense contractor that occurs after the date of enactment of this Act unless—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>the auditable savings for the Department of Defense resulting from the restructuring will exceed the costs allowed by a factor of at least two to one; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>the savings for the Department of Defense resulting from the restructuring will exceed the costs allowed and the Secretary of Defense determines that the business combination will result in the preservation of a critical capability that might otherwise be lost to the Department; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>the report required by section 818(e) of Public Law 103–337 to be submitted to Congress in 1997 is submitted.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <chapeau>Not later than April 1, 1998, the Comptroller General shall,<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> in consultation with the Inspector General of the Department of Defense, the Secretary of Defense, and the Secretary of Labor, submit to Congress a report which shall include the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>an analysis and breakdown of the restructuring costs paid by or submitted to the Department of Defense to companies involved in business combinations since 1993;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>an analysis of the specific costs associated with workforce reductions;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>an analysis of the services provided to the workers affected by business combinations;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>an analysis of the effectiveness of the restructuring costs used to assist laid off workers in gaining employment; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>in accordance with section 818 of Public Law 103337, an analysis of the savings reached from the business combination relative to the restructuring costs paid by the Department of Defense.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <content>The report should set forth recommendations to make this program more effective for workers affected by business combinations and more efficient in terms of the use of Federal dollars.</content> </subsection> </section> <section> <num value="8093"><inline class="smallCaps">Sec</inline>. 8093.</num> <content class="inline">Funds appropriated in title II of this Act for supervision and administration costs for facilities maintenance and repair, minor construction, or design projects may be obligated at the time the reimbursable order is accepted by the performing activity: <proviso><i>Provided,</i> That for the purpose of this section, supervision and administration costs includes all in-house Government cost.</proviso><page identifier="/us/stat/111/1242">111 STAT. 1242</page></content> </section> <section> <num value="8094"><inline class="smallCaps">Sec</inline>. 8094.</num> <content class="inline">The Secretary of Defense may waive reimbursement of the cost of conferences, seminars, courses of instruction, or similar educational activities of the Asia-Pacific Center for Security Studies for military officers and civilian officials of foreign nations if the Secretary determines that attendance by such personnel, without reimbursement, is in the national security interest of the United States: <proviso><i>Provided,</i> That costs for which reimbursement is waived pursuant to this subsection shall be paid from appropriations available for the Asia-Pacific Center.</proviso></content> </section> <section> <num value="8095"><inline class="smallCaps">Sec</inline>. 8095.</num> <subsection class="inline"><num value="a">(a)</num> <content>Notwithstanding any other provision of law, the Chief of the National Guard Bureau may permit the use of equipment of the National Guard Distance Learning Project by any person or entity on a space-available, reimbursable basis. The Chief of the National Guard Bureau shall establish the amount of reimbursement for such use on a case-by-case basis.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content class="inline">Amounts collected under subsection (a) shall be credited to funds available for the National Guard Distance Learning Project and be available to defray the costs associated with the use of equipment of the project under that subsection. Such funds shall be available for such purposes without fiscal year limitation.</content> </subsection> </section> <section> <num value="8096"><inline class="smallCaps">Sec</inline>. 8096.</num> <content class="inline">Using funds available by this Act or any other Act, the Secretary of the Air Force, pursuant to a determination under section 2690 of title 10, United States Code, may implement cost-effective agreements for required heating facility modernization in the Kaiserslautern Military Community in the Federal Republic of Germany: <proviso><i>Provided,</i> That in the City of Kaiserslautern such agreements will include the use of United States anthracite as the base load energy for municipal district heat to the United States Defense installations:</proviso> <proviso><i>Provided further,</i> That at Landstuhl Army Regional Medical Center and Ramstein Air Base, furnished heat may be obtained from private, regional or municipal services, if provisions are included for the consideration of United States coal as an energy source.</proviso></content> </section> <section> <num value="8097"><inline class="smallCaps">Sec</inline>. 8097.</num> <content class="inline">Notwithstanding any other provision of law, and notwithstanding the provisions in section 7306 of title 10, United States Code, in addition to amounts otherwise appropriated or made available by this Act, $13,000,000 is appropriated to the Department of the Navy and shall be available only for a grant to the Intrepid Sea-Air-Space Foundation only for the refurbishment of the former U.S.S. Intrepid (CV 11).</content> </section> <section> <num value="8098"><inline class="smallCaps">Sec</inline>. 8098.</num> <content class="inline">In accordance with section 1557 of title 31, United States Code, the following obligated balance shall be exempt from subchapter IV of chapter 15 of such title and shall remain available for expenditure without fiscal year limitation: Funds obligated by the Economic Development Administration for EDA Project No. 04–49–04095 from funds made available in the Department of Defense Appropriations Act, 1994 (Public Law 103–189).</content> </section> <section> <num value="8099"><inline class="smallCaps">Sec</inline>. 8099.</num> <chapeau class="inline">None of the funds provided by this Act may be used to pay costs of instruction for an Air Force officer for enrollment commencing during the 1998–1999 academic year in a postgraduate degree program at a civilian educational institution if—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>the degree program to be pursued by that officer is offered by the Air Force Institute of Technology (or was offered by that institute during the 1996–1997 academic year);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>the officer is qualified for enrollment at the Air Force Institute of Technology in that degree program; and<page identifier="/us/stat/111/1243">111 STAT. 1243</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>the number of students commencing that degree program at the Air Force Institute of Technology during the first semester of the 1998–1999 academic year is less than the number of students commencing that degree program for the first semester of the 1996–1997 academic year.</content></paragraph> </section> <section> <num value="8100"><inline class="smallCaps">Sec</inline>. 8100.</num> <content class="inline">During the current fiscal year, the amounts which are necessary for the operation and maintenance of the Fisher Houses administered by the Departments of the Army, the Navy, and the Air Force are hereby appropriated, to be derived from amounts which are available in the applicable Fisher House trust fund established under 10 U.S.C. 2221 for the Fisher Houses of each such department.</content> </section> <section> <num value="8101"><inline class="smallCaps">Sec</inline>. 8101.</num> <content class="inline">During the current fiscal year, refunds attributable to the use of the Government travel card by military personnel and civilian employees of the Department of Defense may be credited to operation and maintenance accounts of the Department of Defense which are current when the refunds are received.</content> </section> <section> <num value="8102"><inline class="smallCaps">Sec</inline>. 8102.</num> <content class="inline">During the current fiscal year, not more than a total of $60,000,000 in withdrawal credits may be made by the Marine Corps Supply Management activity group of the Navy Working Capital Fund, Department of Defense Working Capital Funds, to the credit of current applicable appropriations of a Department of Defense activity in connection with the acquisition of critical low density repairables that are capitalized into the Navy Working Capital Fund.</content> </section> <section> <num value="8103"><inline class="smallCaps">Sec</inline>. 8103.</num> <content class="inline">Notwithstanding 31 U.S.C. 3902, during the current fiscal year interest penalties may be paid by the Department of Defense from funds financing the operation of the military department or defense agency with which the invoice or contract payment is associated.</content> </section> <section> <num value="8104"><inline class="smallCaps">Sec</inline>. 8104.</num> <content class="inline">At the time the President submits his budget for fiscal year 1999, the Department of Defense shall transmit to the congressional defense committees a budget justification document for the active and reserve Military Personnel accounts, to be known as the “M–1”, which shall identify, at the budget activity, activity group, and subactivity group level, the amounts requested by the President to be appropriated to the Department of Defense for military personnel in any budget request, or amended budget request, for fiscal year 1999.</content> </section> <section> <num value="8105"><inline class="smallCaps">Sec</inline>. 8105.</num> <content class="inline">Notwithstanding any other provision in this Act, the total amount appropriated in this Act is hereby reduced by $100,000,000 to reflect savings due to excess inventory, to be distributed as follows: “Operation and Maintenance, Army”, $40,000,000; “Operation and Maintenance, Navy”, $40,000,000; and “Operation and Maintenance, Air Force”, $20,000,000.</content> </section> <section> <num value="8106"><inline class="smallCaps">Sec</inline>. 8106.</num> <content class="inline">Notwithstanding any other provision in this Act, the total amount appropriated in title III of this Act is hereby reduced by $75,000,000 to reflect savings from repeal of section 2403 of title 10, United States Code.</content> </section> <section> <num value="8107"><inline class="smallCaps">Sec</inline>. 8107.</num> <content class="inline">The Secretary of the Army may exchange or sell one Army C–20 aircraft and may apply the exchange allowance or sale proceeds in whole or in part payment for the acquisition of one C–37 aircraft: <proviso><i>Provided,</i> That in addition to such exchange allowance or sale proceeds, of the amount appropriated for fiscal year 1998 for Aircraft Procurement, Air Force, not more than $6,000,000 shall be made available for acquisition of the C–37 for the United States Army:</proviso> <proviso><i>Provided further,</i> That in addition <page identifier="/us/stat/111/1244">111 STAT. 1244</page>to such exchange allowance or sale proceeds, of the amount appropriated for fiscal year 1997 for Aircraft Procurement, Air Force, not more than $27,100,000 shall be made available for acquisition of the C–37 for the United States Army.</proviso></content> </section> <section> <num value="8108"><inline class="smallCaps">Sec</inline>. 8108.</num> <content class="inline">During the current fiscal year, the Secretary of Defense may award contracts for capital assets having a development or acquisition cost of not less than $100,000 of a Working Capital Fund in advance of the availability of funds in the Working Capital Fund for minor construction, automatic data processing equipment, software, equipment, and other capital improvements.</content> </section> <section> <num value="8109"><inline class="smallCaps">Sec</inline>. 8109.</num> <content class="inline">From funds made available by this Act for the Maritime Technology Program up to $250,000 shall be made available to assist with a pilot project that will facilitate the transfer of commercial cruise ship shipbuilding technology and expertise to United States yards, utilize the experience and expertise of existing U.S.-flag cruise ship operators, and enable the operation of a U.S.-flag foreign-built cruise ship, and two newly constructed U.S.-flag cruise ships: <proviso><i>Provided,</i> That a person (including a related person with respect to that person) who, within 18 months after the date of enactment, enters into a binding contract for construction in the United States of two cruise ships, which contract shall provide for the construction of two cruise snips of equal or greater size than the cruise ship being operated by such person on the date of enactment and shall require the delivery of the first cruise ship no later than January 1, 2005, and the second cruise ship no later than January 1, 2008, may document with a coastwise endorsement a cruise ship constructed pursuant to this section and a foreign-built cruise ship otherwise in compliance with 46 U.S.C. 289, 883, and 12106 until such date which is 24 months after the delivery of the second cruise ship or any subsequently delivered cruise ship:</proviso> <proviso><i>Provided further,</i> That a person (including a related person with respect to that person) within the meaning of 46 U.S.C. 801 may not operate a U.S.-flag foreign-built cruise ship, or any other cruise ship, in coastwise trade between or among the islands of Hawaii, upon execution of the contract referred to in this section and continuing throughout the life expectancy (as that term is used in 46 U.S.C. App. 1125) of a newly constructed U.S.-flag cruise ship referred to in this section, unless the cruise ship is operated by a person (including a related person with respect to that person) that is operating a cruise ship in coastwise trade between or among the islands of Hawaii on the date of enactment, except if any cruise ship constructed pursuant to this section operates in regular service other than between or among the islands of Hawaii:</proviso> <proviso><i>Provided further,</i> That for purposes of this section the term “cruise ship” means a vessel that is at least 10,000 gross tons (as measured under chapter 143 of title 46, United States Code) and has berth or stateroom accommodations for at least 275 passengers:</proviso> <proviso><i>Provided further,</i> That for purposes of this section, unless otherwise defined in this section, the term “person” means a corporation, partnership or association the controlling interest of which is owned by citizens of the United States within the meaning of 46 U.S.C. 802(b):</proviso> <proviso><i>Provided further,</i> That for purposes of this section the term “related person” means with respect to a person: (1) a holding company, subsidiary, affiliate or association of the person; and (2) an officer, director, or agent of the person or of an entity referred to in (1):</proviso> <proviso><i>Provided further,</i> That none of the funds provided in this or any other Act may <page identifier="/us/stat/111/1245">111 STAT. 1245</page>be obligated for the tooling to construct or the construction of vessels addressed by this section.</proviso></content> </section> <section> <num value="8110"><inline class="smallCaps">Sec</inline>. 8110.</num> <content class="inline">The Secretary of Defense shall submit to the congressional defense committees not later than November 15, 1997 an aviation safety plan outlining an appropriate level of navigational safety upgrades for all Department of Defense aircraft and the associated funding profile to install these upgrades in an expeditious manner.</content> </section> <section> <num value="8111"><inline class="smallCaps">Sec</inline>. 8111.</num> <content class="inline">Notwithstanding any other provision of law, the Secretary of Defense shall obligate the funds provided for University Research Initiatives in the Department of Defense Appropriations Act, 1997 (titles I through VIII under section 101(b) of Public Law 104–208) for the projects and in the amounts provided for in House Report 104–863 of the House of Representatives, 104th Congress, 2d session.</content> </section> <section> <num value="8112"><inline class="smallCaps">Sec</inline>. 8112.</num> <content class="inline">The Secretary of Defense shall submit to the<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> Committees on Appropriations of the House of Representatives and Senate, not later than April 15, 1998, a report on alternatives for current theater combat simulations: <proviso><i>Provided,</i> That this report shall be based on a review and evaluation by the Defense Science Board of the adequacy of the current models used by the Department of Defense for theater combat simulations, with particular emphasis on the tactical warfare (TACWAR) model and the ability of that model to adequately measure airpower, stealth, and other asymmetrical United States warfighting advantages, and shall include the recommendations of the Defense Science Board for improvements to current models and modeling techniques.</proviso></content> </section> <section> <num value="8113"><inline class="smallCaps">Sec</inline>. 8113.</num> <content class="inline">Effective on June 30, 1998, section 8106(a) of the<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> Department of Defense Appropriations Act, 1997 (titles I through VIII of the matter under section 101(b) of Public Law 104–208; 110 Stat. 3009–111; 10 U.S.C. 113 note), is amended by striking “<quotedText>$3,000,000</quotedText>” and inserting “<quotedText>$1,000,000</quotedText>”.</content> </section> <section> <num value="8114"><inline class="smallCaps">Sec</inline>. 8114.</num> <content class="inline">None of the funds appropriated in title IV of this Act may be used to procure end-items for delivery to military forces for operational training, operational use or inventory requirements: <proviso><i>Provided,</i> That this restriction does not apply to end-items used in development, prototyping, and test activities preceding and leading to acceptance for operational use:</proviso> <proviso><i>Provided further,</i> That this restriction does not apply to programs funded within the National Foreign Intelligence Program:</proviso> <proviso><i>Provided further,</i> That the Secretary of Defense may waive this restriction on a case-by-case basis by certifying in writing to the Committees on Appropriations of the House of Representatives and the Senate that it is in the national security interest to do so.</proviso></content> </section> <section> <num value="8115"><inline class="smallCaps">Sec</inline>. 8115.</num> <content class="inline">It is the sense of the Congress that all member nations of the North Atlantic Treaty Organization (NATO) should contribute their proportionate share to pay for the costs of the Partnership for Peace program and for any future costs attributable to the expansion of NATO.</content> </section> <section> <num value="8116"><inline class="smallCaps">Sec</inline>. 8116.</num> <content class="inline">The budget of the President for fiscal year 1999<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s221">10 USC 221 note</ref>.</p></sidenote> submitted to Congress pursuant to section 1105 of title 31, United States Code, and each annual budget request thereafter, shall include budget activity groups (known as “subactivities”) in the operation and maintenance accounts of the military departments and other appropriation accounts, as may be necessary, to separately identify all costs incurred by the Department of Defense to support the expansion of the North Atlantic Treaty Organization. <page identifier="/us/stat/111/1246">111 STAT. 1246</page>The budget justification materials submitted to Congress in support of the budget of the Department of Defense for fiscal year 1999, and subsequent fiscal years, shall provide complete, detailed estimates for the incremental costs of such expansion.</content> </section> <section> <num value="8117"><inline class="smallCaps">Sec</inline>. 8117.</num> <content class="inline">None of the funds made available in this Act may be obligated or expended to enter into or renew a contract with a contractor that is subject to the reporting requirement set forth in subsection (d) of section 4212 of title 38, United States Code, but has not submitted the most recent report required by such subsection for 1997 or a subsequent year.</content> </section> <section> <num value="8118"><inline class="smallCaps">Sec</inline>. 8118.</num> <content class="inline">None of the funds made available in this Act may be used to approve or license the sale of the F–22 advanced tactical fighter to any foreign government.</content> </section> <section> <num value="8119"><inline class="smallCaps">Sec</inline>. 8119.</num> <content class="inline">None of the funds appropriated or otherwise made available by this Act may be made available for the United States Man and the Biosphere Program, or related projects.</content> </section> <section> <num value="8120"><inline class="smallCaps">Sec</inline>. 8120.</num> <content class="inline">Up to $4,500,000 of funds available to the Department of Defense may be available for the payment of claims for loss and damage to personal property suffered as a direct result of the flooding in the Red River Basin during April and May, 1997 by members of the Armed Forces residing in the vicinity of Grand Forks Air Force Base, North Dakota, without regard to the provisions of section 3721(e) of title 31, United States Code.</content> </section> <section> <num value="8121"><inline class="smallCaps">Sec</inline>. 8121.</num> <content class="inline">Of the total amount appropriated under title II for the Navy, the Secretary of the Navy shall make $25,000,000 available for a program to demonstrate expanded use of multitechnology automated reader cards throughout the Navy and the Marine Corps, including demonstration of the use of the so-called “smartship” technology of the ship-to-shore work load/off load program.</content> </section> <section> <num value="8122"><inline class="smallCaps">Sec</inline>. 8122.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Findings</inline>.—</heading><paragraph class="inline"><num value="1">(1)</num> <content>The North Atlantic Treaty Organization, at the Madrid summit, decided to admit three new members, the Czech Republic, Poland and Hungary.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <content>The President, on behalf of the United States endorsed and advocated the expansion of the North Atlantic Treaty Organization to include three additional members.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3)</num> <content>The Senate will consider the ratification of instruments to approve the admissions of new members to the North Atlantic Treaty Organization.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="4">(4)</num> <content>The United States has contributed more than $20,000,000,000 since 1952 for infrastructure and support of the Alliance.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="5">(5)</num> <content>In appropriations Acts considered by the Congress for fiscal year 1998, $449,000,000 has been requested by the President for expenditures in direct support of United States participation in the Alliance.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="6">(6)</num> <content>In appropriations Acts considered by the Congress for fiscal year 1998, $9,983,300,000 has been requested by the President in support of United States military expenditures in North Atlantic Treaty Organization countries.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Report to Congress</inline>.—</heading><chapeau>The Secretary of Defense shall identify and report to the congressional defense committees not later than October 1, 1997—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>the amounts necessary, by appropriation account, for all anticipated costs to the United States for the admission <page identifier="/us/stat/111/1247">111 STAT. 1247</page>of the Czech Republic, Poland and Hungary to the North Atlantic Treaty Organization for the fiscal years 1998, 1999, 2000, 2001 and 2002; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>any new commitments or obligations entered into or assumed by the United States in association with the admission of new members to the Alliance, to include the deployment of United States military personnel, the provision of defense articles or equipment, training activities and the modification and construction of military facilities.</content></paragraph> </subsection> </section> <section> <num value="8123"><inline class="smallCaps">Sec</inline>. 8123.</num> <subsection class="inline"><num value="a">(a)</num> <content>The Secretary of Defense may, on a case-by-case basis, waive with respect to a foreign country each limitation on the procurement of defense items from foreign sources provided in law if the Secretary determines that the application of the limitation with respect to that country would invalidate cooperative programs entered into between the Department of Defense and the foreign country, or would invalidate reciprocal trade agreements for the procurement of defense items entered into under section 2531 of title 10, United States Code, and the country does not discriminate against the same or similar defense items produced in the United States for that country.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <chapeau>Subsection (a) applies with respect to—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>contracts and subcontracts entered into on or after the date of the enactment of this Act; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>options for the procurement of items that are exercised after such date under contracts that are entered into before such date if the option prices are adjusted for any reason other than the application of a waiver granted under subsection (a).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <content>Subsection (a) does not apply to a limitation regarding construction of warships, ball and roller bearings, and clothing or textile materials as defined by section 11 (chapters 50–65) of the Harmonized Tariff Schedule and products classified under headings 4010, 4202, 4203, 6401 through 6406, 6505, 7019, and 9404.</content> </subsection> </section> <section> <num value="8124"><inline class="smallCaps">Sec</inline>. 8124.</num> <content class="inline">It is the sense of Congress that should the Senate ratify NATO enlargement, that the proportional cost of the United States share of the NATO common budget should not increase, and that if any NATO member does not pay its share, the United States shall not pay either.</content> </section> <section> <num value="8125"><inline class="smallCaps">Sec</inline>. 8125.</num> <content class="inline">Congress finds that the Defense Base Closure and Realignment Commission directed the transfer of only 10 electromagnetic test environment systems from Eglin Air Force Base, Florida to Nellis Air Force Base, Nevada.</content> </section> <section> <num value="8126"><inline class="smallCaps">Sec</inline>. 8126.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Findings</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>the Department of Defense budget is insufficient to fulfill all the requirements on the unfunded priorities lists of the military services and defense agencies;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>the documented printing expenses of the Department of Defense amount to several hundred million dollars per year, and a similar amount of undocumented printing expenses may be included in external defense contracts;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>printing in two or more colors generally increases costs;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>the Joint Committee on Printing of the Congress of the United States has established regulations intended to protect taxpayers from extravagant Government printing expenses;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>the Government Printing and Binding Regulations published by the Joint Committee on Printing direct that “* * * it is the responsibility of the head of any department, <page identifier="/us/stat/111/1248">111 STAT. 1248</page>independent office or establishment of the Government to assure that all multicolor printing shall contribute demonstrable value toward achieving a greater fulfillment of the ultimate end-purpose of whatever printed item in which it is included.”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>the Department of Defense publishes a large number of brochures, calendars, and other products in which the use of multicolor printing does not appear to meet the demonstrably valuable contribution requirement of the Joint Committee on Printing, but instead appears to be used primarily for decorative effect; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <content>the Department of Defense could save resources for higher priority needs by reducing printing expenses.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Sense of the Senate</inline>.—</heading><chapeau>Therefore, it is the sense of the Senate that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>the Secretary of Defense should ensure that the printing costs of the Department of Defense and military services are held to the lowest amount possible;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>the Department of Defense should strictly comply with the Printing and Binding Regulations published by the Joint Committee on Printing of the Congress of the United States; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>the Department of Defense budget submission for fiscal year 1999 should reflect the savings that will result from the stricter printing guidelines in paragraphs (1) and (2).</content></paragraph> </subsection> </section> </level> <level> <heading class="centered">(<inline class="smallCaps">rescissions</inline>)</heading> <section> <num value="8127"><inline class="smallCaps">Sec</inline>. 8127.</num> <content class="inline">Of the funds provided in title III of the Department of Defense Appropriations Act, 1996 (Public Law 104–61), $62,000,000 are rescinded, and of the funds provided in title IV of the Department of Defense Appropriations Act, 1997 (as contained in section 101(b) of Public Law 104–208), $38,000,000 are rescinded: <proviso><i>Provided,</i> That such rescissions shall not be made before July 1, 1998:</proviso> <proviso><i>Provided further,</i> That not later than <sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote>June 1, 1998, the Undersecretary of Defense (Comptroller) shall submit a report to the congressional defense committees listing the specific programs, projects and activities proposed for rescission subject to the provisions of this section.</proviso></content> </section> <section> <num value="8128"><inline class="smallCaps">Sec</inline>. 8128.</num> <content>Section 303(e) of the 1997 Emergency Supplemental Appropriations Act for Recovery from Natural Disasters, and for Overseas Peacekeeping Efforts, Including Those in Bosnia (Public Law 105–18; 111 Stat. 168) is struck and the following is inserted in lieu thereof: <quotedContent> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Availability of Funds</inline>.—</heading><content>The Secretary may use funds available in the Defense Working Capital Fund for the payment of the costs of utilities, maintenance and repair, and improvements entered into under the lease under this section.”.</content> </subsection> </quotedContent> </content></section> <section> <num value="8129"><inline class="smallCaps">Sec</inline>. 8129.</num> <content class="inline">Subject to amounts appropriated under the heading “Shipbuilding and Conversion, Navy” in this Act for the New Attack Submarine Program, and notwithstanding any provisions of the National Defense Authorization Act for Fiscal Year 1996 and of the National Defense Authorization Act for Fiscal Year 1997 to the contrary, and notwithstanding section 2304(k) of title 10, United States Code, and the policy set forth in paragraph (1) of that section, the Secretary of the Navy may enter into a contract during fiscal year 1998 for the necessary procurement of four submarines under the New Attack Submarine Program <page identifier="/us/stat/111/1249">111 STAT. 1249</page>with one of the two shipbuilders which are party to the Team Agreement between Electric Boat Corporation and Newport News Shipbuilding and Dry Dock Company dated February 25, 1997, that was submitted to the Congress by the Secretary of the Navy on March 31, 1997, as the prime contractor on the condition such prime contractor enter into one or more subcontracts (under such prime contract) with the other shipbuilder which is a party to such Team Agreement as contemplated in such Team Agreement, with such contract providing for construction of the first submarine in fiscal year 1998 and for the advance construction and advance procurement of material for the second, third, and fourth submarines in fiscal year 1998: <proviso><i>Provided,</i> That such prime contract shall provide that if such contract is terminated, the United States shall not be liable for termination costs in excess of the total amount appropriated for the New Attack Submarine Program.</proviso></content> </section> <section> <num value="8130"><inline class="smallCaps">Sec</inline>. 8130.</num> <content class="inline">In addition to amounts provided elsewhere in this Act, $3,000,000 is hereby appropriated for “Operation and Maintenance, Defense-Wide”, and shall be made available only for the establishment of the “21st Century National Security Strategy Study Group” (hereafter in this section referred to as the “Study Group”): <proviso><i>Provided,</i> That these funds may be obligated only upon the completion of a memorandum of agreement between the Secretary of Defense (after consultation with the President), the Speaker of the House of Representatives, the Minority Leader of the House of Representatives, the Majority Leader of the Senate, and the Minority Leader of the Senate:</proviso> <proviso><i>Provided further,</i> That this memorandum of agreement will set forth the scope of the Group’s work, as well as its charter, composition, authorities, lifespan, and products to be generated:</proviso> <proviso><i>Provided further,</i> That this memorandum of agreement shall be completed not later than December 15, 1997.</proviso></content> </section> <section> <num value="8131"><inline class="smallCaps">Sec</inline>. 8131.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Panel To Review Long-Range Air Power</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8">Establishment.</p></sidenote> <paragraph class="inline"><num value="1">(1)</num> <content>There is hereby established an independent panel to evaluate the adequacy of current planning for United States long-range air power and the requirement for continued low-rate production of B–2 stealth bombers.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <chapeau>The panel shall be composed of nine members appointed as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>two members shall be named by the President;<sidenote><p class="indent0 firstIndent0 fontsize8">President.</p></sidenote></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>two members shall be named by the Speaker of the House of Representatives;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>one member shall be named by the Minority Leader of the House of Representatives;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>two members shall be named by the Majority Leader of the Senate;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>one member shall be named by the Minority Leader of the Senate; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F)</num> <content>one member, who will serve as chairman of the panel,<sidenote><p class="indent0 firstIndent0 fontsize8">President.</p></sidenote> shall be named by the President.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Functions of Panel</inline>.—</heading><paragraph class="inline"><num value="1">(1)</num> <content>Not later than March 1, 1998,<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> the panel shall submit to the President and Congress a report containing its conclusions and recommendations concerning the appropriate B–2 bomber force and specifically stating its recommendation on whether additional funds for the B–2 should be used for continued low-rate production of the B–2 or for upgrades to improve deployability, survivability and maintainability.<page identifier="/us/stat/111/1250">111 STAT. 1250</page></content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <chapeau>As part of its evaluation and review, the panel shall consider, but not be limited to, the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>scenarios involving no warning time and little warning time from potential adversaries;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>the make-up of the current bomber fleet and expected attrition to that fleet over the next 15 years;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>the potential effect of additional B–2 bombers on deterrence;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>the potential effect of additional B–2 bombers in the “halt phase” of a conflict;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>the potential of a biological or chemical “lock-out” of tactical United States assets by future adversaries and the effect of additional B–2 bombers toward mitigating such a tactic;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F)</num> <content>trade-offs between additional B–2 bombers and other programmed Department of Defense assets in meeting the scenarios described in subsections (b)(2)(A) through (b)(2)(E) above;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">(G)</num> <content>the desirability of an increased rate of purchase of precision-guided munitions for aircraft in the existing B–2 fleet;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">(H)</num> <content>the desirability of improving the low observable characteristics of the existing B–2 fleet; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="I">(I)</num> <content>the affordability of additional B–2 bombers in the context of projected levels of future defense funding.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Panel Administration</inline>.—</heading><paragraph class="inline"><num value="1">(1)</num> <content>The members of the panel shall be allowed travel expenses, including per diem in lieu of subsistence, at rates authorized for employees of agencies under subchapter I of chapter 57 of title 5, United States Code, while away from their homes or regular places of business in the performance of services for the panel.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <content>Upon the request of the chairman of the panel, the Secretary of Defense may detail to the panel, on a nonreimbursable basis, personnel of the Department of Defense to assist the panel in carrying out its duties. The Secretary of Defense shall furnish to the panel such administrative and support services as may be requested by the chairman of the panel and shall ensure that all appropriate actions are taken to preserve the options of the President until the panel submits its report under subsection (b)(1).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Funding</inline>.—</heading><content>The Secretary of Defense shall, upon the request of the panel, make available to the panel such amounts as the panel may require to carry out its duties under this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Termination of the Panel</inline>.—</heading><content>The panel shall terminate 30 days after the date on which it submits its report under subsection (b)(1).</content> </subsection> </section> <section> <num value="8132"><inline class="smallCaps">Sec</inline>. 8132.</num> <chapeau class="inline">None of the funds in this Act may be made available for the deployment of United States Armed Forces in the Republic of Bosnia and Herzegovina after June 30, 1998, unless the President, after consultation with the bipartisan leadership of the Senate and the House of Representatives, transmits to the Congress not later than May 15, 1998 a certification that the continued presence of United States Armed Forces is required in order to meet the national security interests of the United States: <proviso><i>Provided,</i> That such certification shall specify the following aspects of any deployment beyond June 30, 1998—</proviso></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>the reasons why such deployment is in the national interest;<page identifier="/us/stat/111/1251">111 STAT. 1251</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>the number of United States military personnel to be deployed in and around the Republic of Bosnia and Herzegovina and the former Yugoslavia;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>the expected duration of any such deployment;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>the mission and objectives of United States military forces deployed in and around the Republic of Bosnia and Herzegovina and the former Yugoslavia;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>the exit strategy for United States forces engaged in such deployment;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>the costs associated with any deployment beyond June 30, 1998; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <content>the impact of such deployment on the morale, retention, and effectiveness of United States forces:</content></paragraph> <continuation class="indent0 fontsize10"><proviso><i>Provided further,</i> That concurrent with said certification, the President shall submit a supplemental appropriations request for such amounts as are necessary for any continued deployment beyond June 30, 1998:</proviso> <proviso><i>Provided further,</i> That nothing in this section shall be deemed to restrict the authority of the President under the Constitution to protect the lives of United States citizens.</proviso></continuation> </section> </level> <level><p class="indent0 fontsize10">This Act may be cited as the “<shortTitle role="act">Department of Defense Appropriations Act, 1998</shortTitle>”.</p></level> Approved October 8, 1997.
LEGISLATIVE HISTORY—H.R. 2266 (S. 1005): HOUSE REPORTS: Nos. 105–206 (Comm. on Appropriations) and 105–265 (Comm. of Conference). SENATE REPORTS: No. 105–45 accompanying S. 1005 (Comm. on Appropriations). CONGRESSIONAL RECORD. Vol. 143 (1997):

July 29, considered and passed House; passed Senate, amended.

Sept. 25, House and Senate agreed to conference report.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):

Oct. 8, Presidential statement.

Oct. 14, President's special message on line item veto.

 FEDERAL REGISTER, Vol. 62 (1997):

Oct. 15, Cancellation of items pursuant to the Line Item Veto Act.

 Public Law 105–57: To amend the National Wildlife Refuge System Administration Act of 1966 to improve the management of the National Wildlife Refuge System, and for other purposes. Public Law57 Public Law 105–57 111 Stat. 1252 1997-10-09 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1252 Public Law105–57 105th Congress
An Act To amend the National Wildlife Refuge System Administration Act of 1966 to improve the management of the National Wildlife Refuge System, and for other purposes.

Oct. 9, 1997

[H.R. 1420]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

National Wildlife Refuge System Improvement Act of 1997.

16 USC 668dd note.
SECTION 1. SHORT TITLE; REFERENCES. (a) Short Title.—This Act may be cited as the “National Wildlife Refuge System Improvement Act of 1997”. (b) References.—Whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or provision of the National Wildlife Refuge System Administration Act of 1966 (16 U.S.C. 668dd et seq.).
SEC. 2.

16 USC 668dd note.

 FINDINGS. The Congress finds the following: (1) The National Wildlife Refuge System is comprised of over 92,000,000 acres of Federal lands that have been incorporated within 509 individual units located in all 50 States and the territories of the United States. (2) The System was created to conserve fish, wildlife, and plants and their habitats and this conservation mission has been facilitated by providing Americans opportunities to participate in compatible wildlife-dependent recreation, including fishing and hunting, on System lands and to better appreciate the value of and need for fish and wildlife conservation. (3) The System serves a pivotal role in the conservation of migratory birds, anadromous and interjurisdictional fish, marine mammals, endangered and threatened species, and the habitats on which these species depend. (4) The System assists in the fulfillment of important international treaty obligations of the United States with regard to fish, wildlife, and plants and their habitats. (5) The System includes lands purchased not only through the use of tax dollars but also through the proceeds from sales of Duck Stamps and national wildlife refuge entrance fees. It is a System that is financially supported by those benefiting from and utilizing it. (6) When managed in accordance with principles of sound fish and wildlife management and administration, fishing, hunting, wildlife observation, and environmental education in national wildlife refuges have been and are expected to continue to be generally compatible uses.111 STAT. 1253 (7) On March 25, 1996, the President issued Executive Order 12996, which recognized “compatible wildlife-dependent recreational uses involving hunting, fishing, wildlife observation and photography, and environmental education and interpretation as priority public uses of the Refuge System”. (8) Executive Order 12996 is a positive step and serves as the foundation for the permanent statutory changes made by this Act.
SEC. 3. DEFINITIONS. (a) In General.—Section 5 (16 U.S.C. 668ee) is amended to read as follows:
“SEC. 5. DEFINITIONS. “For purposes of this Act: “(1) The term ‘compatible use’ means a wildlife-dependent recreational use or any other use of a refuge that, in the sound professional judgment of the Director, will not materially interfere with or detract from the fulfillment of the mission of the System or the purposes of the refuge. “(2) The terms ‘wildlife-dependent recreation’ and ‘wildlife-dependent recreational use’ mean a use of a refuge involving hunting, fishing, wildlife observation and photography, or environmental education and interpretation. “(3) The term ‘sound professional judgment’ means a finding, determination, or decision that is consistent with principles of sound fish and wildlife management and administration, available science and resources, and adherence to the requirements of this Act and other applicable laws. “(4) The terms ‘conserving’, ‘conservation’, ‘manage’, ‘managing’, and ‘management’, mean to sustain and, where appropriate, restore and enhance, healthy populations of fish, wildlife, and plants utilizing, in accordance with applicable Federal and State laws, methods and procedures associated with modern scientific resource programs. Such methods and procedures include, consistent with the provisions of this Act, protection, research, census, law enforcement, habitat management, propagation, live trapping and transplantation, and regulated taking. “(5) The term ‘Coordination Area’ means a wildlife management area that is made available to a State— “(A) by cooperative agreement between the United States Fish and Wildlife Service and a State agency having control over wildlife resources pursuant to section 4 of the Fish and Wildlife Coordination Act (16 U.S.C. 664); or “(B) by long-term leases or agreements pursuant to title III of the Bankhead-Jones Farm Tenant Act (50 Stat. 525; 7 U.S.C. 1010 et seq.). “(6) The term ‘Director’ means the Director of the United States Fish and Wildlife Service or a designee of that Director. “(7) The terms ‘fish’, ‘wildlife’, and ‘fish and wildlife’ mean any wild member of the animal kingdom whether alive or dead, and regardless of whether the member was bred, hatched, or born in captivity, including a part, product, egg, or offspring of the member. “(8) The term ‘person’ means any individual, partnership, corporation, or association.111 STAT. 1254 “(9) The term ‘plant’ means any member of the plant kingdom in a wild, unconfined state, including any plant community, seed, root, or other part of a plant. “(10) The terms ‘purposes of the refuge’ and ‘purposes of each refuge’ mean the purposes specified in or derived from the law, proclamation, executive order, agreement, public land order, donation document, or administrative memorandum establishing, authorizing, or expanding a refuge, refuge unit, or refuge subunit. “(11) The term ‘refuge’ means a designated area of land, water, or an interest in land or water within the System, but does not include Coordination Areas. “(12) The term ‘Secretary’ means the Secretary of the Interior. “(13) The terms ‘State’ and ‘United States’ mean the several States of the United States, Puerto Rico, American Samoa, the Virgin Islands, Guam, and the territories and possessions of the United States. “(14) The term ‘System’ means the National Wildlife Refuge System designated under section 4(a)(1). “(15) The terms ‘take’, ‘taking’, and ‘taken’ mean to pursue, hunt, shoot, capture, collect, or kill, or to attempt to pursue, hunt, shoot, capture, collect, or kill.”.
(b) Conforming Amendment.—Section 4 (16 U.S.C. 668dd) is amended by striking “Secretary of the Interior” each place it appears and inserting “Secretary”.
SEC. 4. MISSION OF THE SYSTEM. Section 4(a) (16 U.S.C. 668dd(a)) is amended— (1) by redesignating paragraphs (2) and (3) as paragraphs (5) and (6), respectively; (2) in clause (i) of paragraph (6) (as so redesignated), by striking “paragraph (2)” and inserting “paragraph (5)”; and (3) by inserting after paragraph (1) the following new paragraph: “(2) The mission of the System is to administer a national network of lands and waters for the conservation, management, and where appropriate, restoration of the fish, wildlife, and plant resources and their habitats within the United States for the benefit of present and future generations of Americans.”.
SEC. 5. ADMINISTRATION OF THE SYSTEM. (a) Administration Generally.—Section 4(a) (16 U.S.C. 668dd(a)), as amended by section 4 of this Act, is further amended by inserting after new paragraph (2) the following new paragraphs: “(3) With respect to the System, it is the policy of the United States that— “(A) each refuge shall be managed to fulfill the mission of the System, as well as the specific purposes for which that refuge was established; “(B) compatible wildlife-dependent recreation is a legitimate and appropriate general public use of the System, directly related to the mission of the System and the purposes of many refuges, and which generally fosters refuge management and through which the American public can develop an appreciation for fish and wildlife;111 STAT. 1255 “(C) compatible wildlife-dependent recreational uses are the priority general public uses of the System and shall receive priority consideration in refuge planning and management; and “(D) when the Secretary determines that a proposed wildlife-dependent recreational use is a compatible use within a refuge, that activity should be facilitated, subject to such restrictions or regulations as may be necessary, reasonable, and appropriate. “(4) In administering the System, the Secretary shall— “(A) provide for the conservation of fish, wildlife, and plants, and their habitats within the System; “(B) ensure that the biological integrity, diversity, and environmental health of the System are maintained for the benefit of present and future generations of Americans; “(C) plan and direct the continued growth of the System in a manner that is best designed to accomplish the mission of the System, to contribute to the conservation of the ecosystems of the United States, to complement efforts of States and other Federal agencies to conserve fish and wildlife and their habitats, and to increase support for the System and participation from conservation partners and the public; “(D) ensure that the mission of the System described in paragraph (2) and the purposes of each refuge are carried out, except that if a conflict exists between the purposes of a refuge and the mission of the System, the conflict shall be resolved in a manner that first protects the purposes of the refuge, and, to the extent practicable, that also achieves the mission of the System; “(E) ensure effective coordination, interaction, and cooperation with owners of land adjoining refuges and the fish and wildlife agency of the States in which the units of the System are located; “(F) assist in the maintenance of adequate water quantity and water quality to fulfill the mission of the System and the purposes of each refuge; “(G) acquire, under State law, water rights that are needed for refuge purposes; “(H) recognize compatible wildlife-dependent recreational uses as the priority general public uses of the System through which the American public can develop an appreciation for fish and wildlife; “(I) ensure that opportunities are provided within the System for compatible wildlife-dependent recreational uses; “(J) ensure that priority general public uses of the System receive enhanced consideration over other general public uses in planning and management within the System; “(K) provide increased opportunities for families to experience compatible wildlife-dependent recreation, particularly opportunities for parents and their children to safely engage in traditional outdoor activities, such as fishing and hunting; “(L) continue, consistent with existing laws and interagency agreements, authorized or permitted uses of units of the System by other Federal agencies, including those necessary to facilitate military preparedness; “(M) ensure timely and effective cooperation and collaboration with Federal agencies and State fish and wildlife agencies during the course of acquiring and managing refuges; and111 STAT. 1256 “(N) monitor the status and trends of fish, wildlife, and plants in each refuge.”. (b) Powers.—Section 4(b) (16 U.S.C. 668dd(b)) is amended— (1) in the matter preceding paragraph (1) by striking “authorized—” and inserting “authorized to take the following actions:”; (2) in paragraph (1) by striking “to enter” and inserting “Enter”; (3) in paragraph (2)— (A) by striking “to accept” and inserting “Accept”; and (B) by striking “, and” and inserting a period; (4) in paragraph (3) by striking “to acquire” and inserting “Acquire”; and (5) by adding at the end the following new paragraphs: “(4) Subject to standards established by and the overall management oversight of the Director, and consistent with standards established by this Act, to enter into cooperative agreements with State fish and wildlife agencies for the management of programs on a refuge. “(5)

Regulations.

 Issue regulations to carry out this Act.”.
SEC. 6. COMPATIBILITY STANDARDS AND PROCEDURES. Section 4(d) (16 U.S.C. 668dd(d)) is amended by adding at the end the following new paragraphs: “(3)(A)(i) Except as provided in clause (iv), the Secretary shall not initiate or permit a new use of a refuge or expand, renew, or extend an existing use of a refuge, unless the Secretary has determined that the use is a compatible use and that the use is not inconsistent with public safety. The Secretary may make the determinations referred to in this paragraph for a refuge concurrently with development of a conservation plan under subsection (e). “(ii) On lands added to the System after March 25, 1996, the Secretary shall identify, prior to acquisition, withdrawal, transfer, reclassification, or donation of any such lands, existing compatible wildlife-dependent recreational uses that the Secretary determines shall be permitted to continue on an interim basis pending completion of the comprehensive conservation plan for the refuge. “(iii) Wildlife-dependent recreational uses may be authorized on a refuge when they are compatible and not inconsistent with public safety. Except for consideration of consistency with State laws and regulations as provided for in subsection (m), no other determinations or findings are required to be made by the refuge official under this Act or the Refuge Recreation Act for wildlife-dependent recreation to occur. “(iv) Compatibility determinations in existence on the date of enactment of the National Wildlife Refuge System Improvement Act of 1997 shall remain in effect until and unless modified. “(B)

Regulations.

 Not later than 24 months after the date of the enactment of the National Wildlife Refuge System Improvement Act of 1997, the Secretary shall issue final regulations establishing the process for determining under subparagraph (A) whether a use of a refuge is a compatible use. These regulations shall— “(i) designate the refuge official responsible for making initial compatibility determinations; “(ii) require an estimate of the timeframe, location, manner, and purpose of each use;111 STAT. 1257 “(iii) identify the effects of each use on refuge resources and purposes of each refuge; “(iv) require that compatibility determinations be made in writing; “(v) provide for the expedited consideration of uses that will likely have no detrimental effect on the fulfillment of the purposes of a refuge or the mission of the System; “(vi) provide for the elimination or modification of any use as expeditiously as practicable after a determination is made that the use is not a compatible use; “(vii) require, after an opportunity for public comment, reevaluation of each existing use, other than those uses specified in clause (viii), if conditions under which the use is permitted change significantly or if there is significant new information regarding the effects of the use, but not less frequently than once every 10 years, to ensure that the use remains a compatible use, except that, in the case of any use authorized for a period longer than 10 years (such as an electric utility right-of-way), the reevaluation required by this clause shall examine compliance with the terms and conditions of the authorization, not examine the authorization itself; “(viii) require, after an opportunity for public comment, reevaluation of each compatible wildlife-dependent recreational use when conditions under which the use is permitted change significantly or if there is significant new information regarding the effects of the use, but not less frequently than in conjunction with each preparation or revision of a conservation plan under subsection (e) or at least every 15 years, whichever is earlier; and “(ix) provide an opportunity for public review and comment

Public information.

 on each evaluation of a use, unless an opportunity for public review and comment on the evaluation of the use has already been provided during the development or revision of a conservation plan for the refuge under subsection (e) or has otherwise been provided during routine, periodic determinations of compatibility for wildlife-dependent recreational uses. “(4) The provisions of this Act relating to determinations of the compatibility of a use shall not apply to— “(A) overflights above a refuge; and “(B) activities authorized, funded, or conducted by a Federal agency (other than the United States Fish and Wildlife Service) which has primary jurisdiction over a refuge or a portion of a refuge, if the management of those activities is in accordance with a memorandum of understanding between the Secretary or the Director and the head of the Federal agency with primary jurisdiction over the refuge governing the use of the refuge.”.
SEC. 7. REFUGE CONSERVATION PLANNING PROGRAM. (a) In General.—Section 4 (16 U.S.C. 668dd) is amended— (1) by redesignating subsections (e) through (i) as subsections (f) through (j), respectively; and (2) by inserting after subsection (d) the following new subsection: “(e)(1)(A) Except with respect to refuge lands in Alaska (which shall be governed by the refuge planning provisions of the Alaska National Interest Lands Conservation Act (16 U.S.C. 3101 et seq.)), the Secretary shall—111 STAT. 1258 “(i) propose a comprehensive conservation plan for each refuge or related complex of refuges (referred to in this subsection as a ‘planning unit’) in the System; “(ii)

Federal Register, publication.

 publish a notice of opportunity for public comment in the Federal Register on each proposed conservation plan; “(iii) issue a final conservation plan for each planning unit consistent with the provisions of this Act and, to the extent practicable, consistent with fish and wildlife conservation plans of the State in which the refuge is located; and “(iv) not less frequently than 15 years after the date of issuance of a conservation plan under clause (iii) and every 15 years thereafter, revise the conservation plan as may be necessary. “(B) The Secretary shall prepare a comprehensive conservation plan under this subsection for each refuge within 15 years after the date of enactment of the National Wildlife Refuge System Improvement Act of 1997. “(C) The Secretary shall manage each refuge or planning unit under plans in effect on the date of enactment of the National Wildlife Refuge System Improvement Act of 1997, to the extent such plans are consistent with this Act, until such plans are revised or superseded by new comprehensive conservation plans issued under this subsection. “(D) Uses or activities consistent with this Act may occur on any refuge or planning unit before existing plans are revised or new comprehensive conservation plans are issued under this subsection. “(E) Upon completion of a comprehensive conservation plan under this subsection for a refuge or planning unit, the Secretary shall manage the refuge or planning unit in a manner consistent with the plan and shall revise the plan at any time if the Secretary determines that conditions that affect the refuge or planning unit have changed significantly. “(2) In developing each comprehensive conservation plan under this subsection for a planning unit, the Secretary, acting through the Director, shall identify and describe— “(A) the purposes of each refuge comprising the planning unit; “(B) the distribution, migration patterns, and abundance of fish, wildlife, and plant populations and related habitats within the planning unit; “(C) the archaeological and cultural values of the planning unit; “(D) such areas within the planning unit that are suitable for use as administrative sites or visitor facilities; “(E) significant problems that may adversely affect the populations and habitats of fish, wildlife, and plants within the planning unit and the actions necessary to correct or mitigate such problems; and “(F) opportunities for compatible wildlife-dependent recreational uses. “(3) In preparing each comprehensive conservation plan under this subsection, and any revision to such a plan, the Secretary, acting through the Director, shall, to the maximum extent practicable and consistent with this Act— “(A) consult with adjoining Federal, State, local, and private landowners and affected State conservation agencies; and111 STAT. 1259 “(B) coordinate the development of the conservation plan or revision with relevant State conservation plans for fish and wildlife and their habitats. “(4)(A) In accordance with subparagraph (B), the Secretary

Public information.

 shall develop and implement a process to ensure an opportunity for active public involvement in the preparation and revision of comprehensive conservation plans under this subsection. At a minimum, the Secretary shall require that publication of any final plan shall include a summary of the comments made by States, owners of adjacent or potentially affected land, local governments, and any other affected persons, and a statement of the disposition of concerns expressed in those comments. “(B) Prior to the adoption of each comprehensive conservation

Public information.

 plan under this subsection, the Secretary shall issue public notice of the draft proposed plan, make copies of the plan available at the affected field and regional offices of the United States Fish and Wildlife Service, and provide opportunity for public comment.”.
SEC. 8. EMERGENCY POWER; STATE AUTHORITY; WATER RIGHTS; COORDINATION. (a) In General.—Section 4 (16 U.S.C. 668dd) is further amended by adding at the end the following new subsections: “(k) Notwithstanding any other provision of this Act, the Secretary may temporarily suspend, allow, or initiate any activity in a refuge in the System if the Secretary determines it is necessary to protect the health and safety of the public or any fish or wildlife population. “(l) Nothing in this Act shall be construed to authorize the Secretary to control or regulate hunting or fishing of fish and resident wildlife on lands or waters that are not within the System. “(m) Nothing in this Act shall be construed as affecting the authority, jurisdiction, or responsibility of the several States to manage, control, or regulate fish and resident wildlife under State law or regulations in any area within the System. Regulations permitting hunting or fishing of fish and resident wildlife within the System shall be, to the extent practicable, consistent with State fish and wildlife laws, regulations, and management plans. “(n)(1) Nothing in this Act shall— “(A) create a reserved water right, express or implied, in the United States for any purpose; “(B) affect any water right in existence on the date of enactment of the National Wildlife Refuge System Improvement Act of 1997; or “(C) affect any Federal or State law in existence on the date of the enactment of the National Wildlife Refuge System Improvement Act of 1997 regarding water quality or water quantity. “(2) Nothing in this Act shall diminish or affect the ability to join the United States in the adjudication of rights to the use of water pursuant to the McCarran Act (43 U.S.C. 666). “(o) Coordination with State fish and wildlife agency personnel or with personnel of other affected State agencies pursuant to this Act shall not be subject to the Federal Advisory Committee Act (5 U.S.C. App.).”. (b) Conforming Amendment.—Section 4(c) (16 U.S.C. 668dd(c)) is amended by striking the last sentence.111 STAT. 1260
SEC. 9.

16 USC 668dd note.

 STATUTORY CONSTRUCTION WITH RESPECT TO ALASKA. (a) In General.—Nothing in this Act is intended to affect— (1) the provisions for subsistence uses in Alaska set forth in the Alaska National Interest Lands Conservation Act (Public Law 96–487), including those in titles III and VIII of that Act; (2) the provisions of section 102 of the Alaska National Interest Lands Conservation Act, the jurisdiction over subsistence uses in Alaska, or any assertion of subsistence uses in Alaska in the Federal courts; and (3) the manner in which section 810 of the Alaska National Interest Lands Conservation Act is implemented in national wildlife refuges in Alaska. (b) Conflicts of Laws.—If any conflict arises between any provision of this Act and any provision of the Alaska National Interest Lands Conservation Act, then the provision in the Alaska National Interest Lands Conservation Act shall prevail.
Approved October 9, 1997.
LEGISLATIVE HISTORY—H.R. 1420: HOUSE REPORTS: No. 105–106 (Comm. on Resources). CONGRESSIONAL RECORD, Vol. 143 (1997):

June 3, considered and passed House.

Sept. 10, considered and passed Senate, amended.

Sept. 23, House concurred in Senate amendments.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):

Oct. 9, Presidential statement.

 Public Law 105–58: To establish the Oklahoma City National Memorial as a unit of the National Park System; to designate the Oklahoma City Memorial Trust, and for other purposes. Public Law58 Public Law 105–58 111 Stat. 1261 1997-10-09 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1261 Public Law105–58 105th Congress
An Act To establish the Oklahoma City National Memorial as a unit of the National Park System; to designate the Oklahoma City Memorial Trust, and for other purposes.

Oct. 9, 1997

[S. 871]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Oklahoma City National Memorial Act of 1997.

16 USC 450ss note.
SECTION 1. SHORT TITLE. This Act may be cited as the “Oklahoma City National Memorial Act of 1997”.
SEC. 2. FINDINGS AND PURPOSES.

16 USC 450ss.

 Congress finds that— (1) few events in the past quarter-century have rocked Americans’ perception of themselves and their institutions, and brought together the people of our Nation with greater intensity than the April 19, 1995, bombing of the Alfred P. Murrah Federal Building in downtown Oklahoma City; (2) the resulting deaths of 168 people, some of whom were children, immediately touched thousands of family members whose fives will forever bear scars of having those precious to them taken away so brutally; (3) suffering with such families are countless survivors, including children, who struggle not only with the suffering around them, but their own physical and emotional injuries and with shaping a life beyond April 19; (4) such losses and struggles are personal and, since they resulted from so public an attack, they are also shared with a community, a Nation, and the world; (5) the story of the bombing does not stop with the attack itself or with the many losses it caused. The responses of Oklahoma’s public servants and private citizens, and those from throughout the Nation, remain as a testament to the sense of unity, compassion, even heroism, that characterized the rescue and recovery following the bombing; (6) during the days immediately following the Oklahoma City bombing, Americans and people from around the world of all races, political philosophies, religions and walks of life responded with unprecedented solidarity and selflessness; and (7) given the national and international impact and reaction, the Federal character of the site of the bombing, and the significant percentage of the victims and survivors who were Federal employees, the Oklahoma City Memorial will be established, designed, managed and maintained to educate 111 STAT. 1262present and future generations, through a public/private partnership, to work together efficiently and respectfully in developing a National Memorial relating to all aspects of the April 19, 1995, bombing in Oklahoma City.
SEC. 3.

16 USC 450ss–1.

 DEFINITIONS. In this Act: (1) Memorial.—The term “Memorial” means the Oklahoma City National Memorial designated under section 4(a). (2) Secretary.—The term “Secretary” means the Secretary of the Interior. (3) Trust.—The term “Trust” means the Oklahoma City National Memorial Trust designated under section 5(a).
SEC. 4.

16 USC 450ss–2.

 OKLAHOMA CITY NATIONAL MEMORIAL. (a) In order to preserve for the benefit and inspiration of the people of the United States and the world, as a National Memorial certain lands located in Oklahoma City, Oklahoma, there is established as a unit of the National Park System the Oklahoma City National Memorial. The Memorial shall be administered by the Trust in cooperation with the Secretary and in accordance with the provisions of this Act, the Act of August 25, 1916 (39 Stat. 535; 16 U.S.C. 1 et seq.), and the Act of August 21, 1935 (49 Stat. 666; 16 U.S.C. 461–467). (b) The Memorial area shall be comprised of the lands, facilities and structures generally depicted on the map entitled “Oklahoma City National Memorial”, numbered OCNM 001, and dated May 1997 (hereafter referred to in this Act as the “map”): (1) Such map shall be on file and available for public inspection in the appropriate offices of the National Park Service and the Trust. (2) After advising the Committee on Energy and Natural Resources of the Senate and the Committee on Resources of the House of Representatives, in writing, the Trust, as established by section 5 of this Act, in consultation with the Secretary, may make minor revisions of the boundaries of the Memorial when necessary by publication of a revised drawing or other boundary description in the Federal Register.
SEC. 5.

16 USC 450ss–3.

 OKLAHOMA CITY NATIONAL MEMORIAL TRUST. (a) Establishment.—There is established a wholly owned Government corporation to be known as the Oklahoma City National Memorial Trust. (b) Board of Directors.— (1) In general.—The powers and management of the Trust shall be vested in a board of Directors (hereinafter referred to as the “Board”) consisting of the following 9 members: (A) The Secretary or the Secretary’s designee. (B)

President.

 Eight individuals, appointed by the President, from a list of recommendations submitted by the Governor of the State of Oklahoma; and a list of recommendations submitted by the Mayor of Oklahoma City, Oklahoma; and a list of recommendations submitted by the United States Senators from Oklahoma; and a list of recommendations submitted by United States Representatives from Oklahoma. The President shall make the appointments referred to in this subparagraph within 90 days after the enactment of this Act.111 STAT. 1263 (2) Terms.—Members of the Board appointed under paragraph (1)(B) shall each serve for a term of 4 years, except that of the members first appointed, 2 shall serve for a term of 3 years; and 2 shall serve a term of 2 years. Any vacancy in the Board shall be filled in the same manner in which the original appointment was made, and any member appointed to fill a vacancy shall serve for the remainder of that term for which his or her predecessor was appointed. No appointed member may serve more than 8 years in consecutive terms. (3) Quorum.—Five members of the Board shall constitute a quorum for the conduct of business by the Board. (4) Organization and compensation.—The Board shall organize itself in such a manner as it deems most appropriate to effectively carry out the authorized activities of the Trust. Board members shall serve without pay, but may be reimbursed for the actual and necessary travel and subsistence expenses incurred by them in the performance of the duties of the Trust. (5) Liability of directors.—Members of the Board of Directors shall not be considered Federal employees by virtue of their membership on the Board, except for purposes of the Federal Tort Claims Act and the Ethics in Government Act, and the provisions of chapter 11 of title 18, United States Code. (6) Meetings.—The Board shall meet at least three times

Public information.

 per year in Oklahoma City, Oklahoma and at least two of those meetings shall be opened to the public. Upon a majority vote, the Board may close any other meetings to the public. The Board shall establish procedures for providing public information and opportunities for public comment regarding operations maintenance and management of the Memorial; as well as, policy, planning and design issues. (7) Staff.— (A) Non-national park service staff.—The Trust is authorized to appoint and fix the compensation and duties of an executive director and such other officers and employees as it deems necessary without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, and may pay them without regard to the provisions of chapter 51, and subchapter III of chapter 53, title 5, United States Code, relating to classification and General Schedule pay rates. (B) Interim park service staff.—At the request of the Trust, the Secretary shall provide for a period not to exceed 2 years, such personnel and technical expertise, as necessary, to provide assistance in the implementation of the provisions of this Act. (C) Park service staff.—At the request of the Trust, the Secretary shall provide such uniformed personnel, on a reimbursable basis, to carry out day-to-day visitor service programs. (D) Other federal employees.—At the request of the Trust, the Director of any other Federal agency may provide such personnel, on a reimbursable basis, to carry out day-to-day visitor service programs. (8) Necessary powers.—The Trust shall have all necessary and proper powers for the exercise of the authorities vested in it.111 STAT. 1264 (9) Taxes.—The Trust and all properties administered by the Trust shall be exempt from all taxes and special assessments of every kind by the State of Oklahoma, and its political subdivisions including the county of Oklahoma and the city of Oklahoma City. (10) Government corporation.— (A) The Trust shall be treated as a wholly owned Government corporation subject to chapter 91 of title 31, United States Code (commonly referred to as the Government Corporation Control Act). Financial statements of the Trust shall be audited annually in accordance with section 9105 of title 31 of the United States Code. (B)

Reports.

 At the end of each calendar year, the Trust shall submit to the Committee on Energy and Natural Resources of the United States Senate and the Committee on Resources of the House of Representatives a comprehensive and detailed report of its operations, activities, and accomplishments for the prior fiscal year. The report also shall include a section that describes in general terms the Trust’s goals for the current fiscal year.
SEC. 6.

16 USC 450ss–1.

 DUTIES AND AUTHORITIES OF THE TRUST. (a) Overall Requirements of the Trust.—The Trust shall administer the operation, maintenance, management and interpretation of the Memorial including, but not limited to, leasing, rehabilitation, repair and improvement of property within the Memorial under its administrative jurisdiction using the authorities provided in this section, which shall be exercised in accordance with— (1) the provisions of law generally applicable to units of the National Park Service, including: “An Act to establish a National Park Service, and for other purposes” approved August 25, 1916 (39 Stat. 535; 16 U.S.C. 1, 2–4); (2) the Act of August 21, 1935 (49 Stat. 666; U.S.C. 461467); (3) the general objectives of the “Memorial Mission Statement”, adopted March 26, 1996, by the Oklahoma City Memorial Foundation; (4) the “Oklahoma City Memorial Foundation Intergovernmental Letter of Understanding”, dated October 28, 1996; and (5) the Cooperative Agreement to be entered into between the Trust and the Secretary pursuant to this Act. (b) Authorities.— (1) The Trust may participate in the development of programs and activities at the properties designated by the map, and the Trust shall have the authority to negotiate and enter into such agreements, leases, contracts and other arrangements with any person, firm, association, organization, corporation or governmental entity, including, without limitation, entities of Federal, State and local governments as are necessary and appropriate to carry out its authorized activities. Any such agreements may be entered into without regard to section 321 of the Act of June 30, 1932 (40 U.S.C. 303b). (2) The Trust shall establish procedures for lease agreements and other agreements for use and occupancy of Memorial facilities, including a requirement that in entering into such agreements the Trust shall obtain reasonable competition.111 STAT. 1265 (3) The Trust may not dispose of or convey fee title to any real property transferred to it under this Act. (4) Federal laws and regulations governing procurement by Federal agencies shall not apply to the Trust, with the exception of laws and regulations related to Federal Government contracts governing working conditions, and any civil rights provisions otherwise applicable thereto. (5) The Trust, in consultation with the Administrator of

Regulations.

 Federal Procurement Policy, shall establish and promulgate procedures applicable to the Trust’s procurement of goods and services including, but not limited to, the award of contracts on the basis of contractor qualifications, price, commercially reasonable buying practices, and reasonable competition. (c) Management Program.—Within one year after the enactment

Contracts.

 of this Act, the Trust, in consultation with the Secretary, shall develop a cooperative agreement for management of those lands, operations and facilities within the Memorial established by this Act. In furtherance of the general purposes of this Act, the Secretary and the Trust shall enter into a Cooperative Agreement pursuant to which the Secretary shall provide technical assistance for the planning, preservation, maintenance, management, and interpretation of the Memorial. The Secretary also shall provide such maintenance, interpretation, curatorial management, and general management as mutually agreed to by the Secretary and the Trust. (d) Donations.—The Trust may solicit and accept donations of funds, property, supplies, or services from individuals, foundations, corporations, and other private or public entities for the purposes of carrying out its duties. (e) Proceeds.—Notwithstanding section 1341 of title 31 of the United States Code, all proceeds received by the Trust shall be retained by the Trust, and such proceeds shall be available, without further appropriation, for the administration, operation, preservation, restoration, operation and maintenance, improvement, repair and related expenses incurred with respect to Memorial properties under its administrative jurisdiction. The Secretary of the Treasury, at the option of the Trust shall invest excess monies of the Trust in public debt securities which shall bear interest at rates determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding marketable obligations of the United States of comparable maturity. (f) Suits.—The Trust may sue and be sued in its own name to the same extent as the Federal Government. Litigation arising out of the activities of the Trust shall be conducted by the Attorney General; except that the Trust may retain private attorneys to provide advice and counsel. The District Court for the Western District of Oklahoma shall have exclusive jurisdiction over any suit filed against the Trust. (g) Bylaws, Rules and Regulations.—The Trust may adopt, amend, repeal, and enforce bylaws, rules and regulations governing the manner in which its business may be conducted and the powers vested in it may be exercised. The Trust is authorized, in consultation with the Secretary, to adopt and to enforce those rules and regulations that are applicable to the operation of the National Park System and that may be necessary and appropriate to carry out its duties and responsibilities under this Act. The Trust shall

Federal Register, publication.

 111 STAT. 1266give notice of the adoption of such rules and regulations by publication in the Federal Register. (h) Insurance.—The Trust shall require that all leaseholders and contractors procure proper insurance against any loss in connection with properties under lease or contract, or the authorized activities granted in such lease or contract, as is reasonable and customary.
SEC. 7.

16 USC 450ss–5.

 LIMITATIONS ON FUNDING. Authorization of Appropriations: (1) In general.—In furtherance of the purposes of this Act, there is hereby authorized the sum of $5,000,000, to remain available until expended. (2) Matching requirement.—Amounts appropriated in any fiscal year to carry out the provisions of this Act may only be expended on a matching basis in a ratio of at least one non-Federal dollar to every Federal dollar. For the purposes of this provision, each non-Federal dollar donated to the Trust or to the Oklahoma City Memorial Foundation for the creation, maintenance, or operation of the Memorial shall satisfy the matching dollar requirement without regard to the fiscal year in which such donation is made.
SEC. 8.

16 USC 450ss–6.

 ALFRED P. MURRAH FEDERAL BUILDING. Prior to the construction of the Memorial the Administrator of General Services shall, among other actions, exchange, sell, lease, donate, or otherwise dispose of the site of the Alfred P. Murrah Federal Building, or a portion thereof, to the Trust. Any such disposal shall not be subject to— (1) the Public Buildings Act of 1959 (40 U.S.C. 601 et seq.); (2) the Federal Property and Administrative Services Act of 1949 (40 U.S.C. et seq.); or (3) any other Federal law establishing requirements or procedures for the disposal of Federal property.
SEC. 9. GENERAL ACCOUNTING OFFICE STUDY. Six years after the first meeting of the Board of Directors of the Trust, the General Accounting Office shall conduct an interim study of the activities of the Trust and shall report the results of the study to the Committee on Energy and Natural Resources and the Committee on Appropriations of the United States Senate, 111 STAT. 1267and the Committee on Resources and Committee on Appropriations of the House of Representatives. The study shall include, but shall not be limited to, details of how the Trust is meeting its obligations under this Act.
Approved October 9, 1997.
LEGISLATIVE HISTORY—S. 871 (H.R. 1849): HOUSE REPORTS: No. 105–316 accompanying H.R. 1849 (Comm. on Resources). SENATE REPORTS: No. 105–71 (Comm. on Energy and Natural Resources). CONGRESSIONAL RECORD, Vol. 143 (1997):

July 31, considered and passed Senate.

Sept. 23, considered and passed House, amended.

Sept. 25, Senate concurred in House amendment.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):

Oct. 9, Presidential statement.

 Public Law 105–59: To provide for the release of the reversionary interest held by the United States in certain property located in the County of Iosco, Michigan. Public Law59 Public Law 105–59 111 Stat. 1268 1997-10-10 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1268 Public Law105–59 105th Congress
An Act To provide for the release of the reversionary interest held by the United States in certain property located in the County of Iosco, Michigan.

Oct. 10, 1997

[H.R. 394]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. RELEASE OF REVERSIONARY INTEREST REGARDING CERTAIN PROPERTY IN IOSCO COUNTY, MICHIGAN. (a) Release Required.—The Secretary of Agriculture shall release the reversionary interest of the United States in the parcel of real property described in subsection (b), which was retained by the United States when the property was conveyed to the County of Iosco, Michigan, in 1960 pursuant to a deed recorded at Liber 144, beginning page 58, in the land records of the County. (b) Description of Property.—The parcel of real property referred to in subsection (a) consists of 1.92 acres in the County of Iosco, Michigan, and is described as follows: That part of the N.W. 14 of the S.E. 14 of Section 11, T.22 N.R. 8 East., Baldwin Township, Iosco County, Michigan described as follows: Commencing at the Center of said Section 11, thence South 89 degrees, 15′ 41″ East, along the East-West ¼ Line of said Section 11, 102.0 feet, thence South 00 degrees 08′ 07″ East, along an existing fence line, 972.56 feet, thence North 89 degrees 07′ 13″ W. 69.70 feet to a point in the North-South ¼ Line, thence North 02 degrees 02′ 12″ West, along said North-South 14 Line, 973.42 feet to the Point of Beginning. (c) Additional Terms.—The Secretary may require such terms or conditions in connection with the release under this section as the Secretary considers appropriate to protect the interests of the United States. (d) Instrument of Release.—The Secretary shall execute and file in the appropriate office or offices a deed of release, amended deed, or other appropriate instrument effectuating the release of the reversionary interest under this section.
Approved October 10, 1997.
LEGISLATIVE HISTORY—H.R. 394: HOUSE REPORTS: No. 105–35 (Comm. on Agriculture). CONGRESSIONAL RECORD, Vol. 143 (1997):

Apr. 8, considered and passed House.

Sept. 30, considered and passed Senate.

 Public Law 105–60: To provide for the exchange of lands within Admiralty Island National Monument, and for other purposes. Public Law60 Public Law 105–60 111 Stat. 1269 1997-10-10 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1269 Public Law105–60 105th Congress
An Act To provide for the exchange of lands within Admiralty Island National Monument, and for other purposes.

Oct. 10, 1997

[H.R. 1948]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Hood Bay Land Exchange Act of 1997.

Alaska.

16 USC 431 note, 1132 note.
SECTION 1. SHORT TITLE. This Act may be cited as the “Hood Bay Land Exchange Act of 1997”.
SEC. 2. FINDINGS.

16 USC 431 note, 1132 note.

 The Congress makes the following findings: (1) The Alaska National Interest Lands Conservation Act established the Admiralty Island National Monument which is managed by the Secretary of Agriculture, by and through the Forest Service. (2) The Forest Service has established a policy of encouraging the acquisition of private land inholdings within Admiralty Island National Monument on a willing buyer/willing seller basis. Congress has supported this policy, for example by passage of the Greens Creek Land Exchange Act of 1996 which provided for a land exchange of certain public and private lands in Admiralty Island National Monument. (3) Lands owned by Alaska Pulp Corporation, consisting of 54 acres, more or less, located in Hood Bay on Admiralty Island within the boundaries of the Kootznoowoo Wilderness are available for transfer to Federal ownership on a willing seller/willing buyer basis. The acquisition of these lands would provide Federal ownership of this valuable land in a critical area of Admiralty Island National Monument. (4) The United States is the owner of certain reversionary interests to 143.87 acres, more or less, located adjacent to Silver Bay near Sitka, Alaska, which interests were reserved in patent No. 1213671 issued to the Alaska Pulp Corporation on October 18, 1960. The transfer of the reversionary interests of the United States in such lands adjacent to Silver Bay to the Alaska Pulp Corporation would facilitate future use and development of that land. (5) The future acquisition by the United States of the Chaik Bay property on Admiralty Island to be incorporated into the Kootznoowoo Wilderness would be in the public interest.111 STAT. 1270
SEC. 3.

16 USC 431 note, 1132 note.

 DEFINITIONS. As used in this Act: (1) The term “ANILCA” means the Alaska National Interest Lands Conservation Act (16 U.S.C. 3101 et seq.). (2) The term “Company” means the Alaska Pulp Corporation, an Alaska corporation, its successors, and assigns. (3) The term “Company Property” means the property depicted on United States Survey Plat 1058 approved March 20, 1917, consisting of approximately 54 acres of land. (4) The term “Federal Property” means the reversionary interest of the United States described in paragraphs (6) and (7) of the patent dated October 18, 1960, granted by the Bureau of Land Management to Alaska Lumber & Pulp Co., which was recorded at Book 15, Pages 271–273, Sitka Recording District on November 9, 1960. The term “Federal Property” does not include the interests described in paragraphs (1) through (5) of the said patent. (5) The term “Monument” means the Admiralty Island National Monument, which was established by section 503 of ANILCA and which is managed by the Secretary of Agriculture as a unit of the National Forest System. (6) The term “Secretary” means the Secretary of Agriculture. (7) The term “Sitka” means the city and borough of Sitka, Alaska, a home-rule borough formed in accordance with the laws of the State of Alaska. (8) The term “Sitka Property” means the property depicted on the maps entitled “Sitka Property”, dated August 29, 1997, consisting of approximately 49 acres of land.
SEC. 4.

16 USC 431 note, 1132 note.

 LAND EXCHANGE, TRANSFER, RELINQUISHMENT. (a) Exchange of Company and Federal Property.—After the Company conveys to the United States, by general warranty deed, all right, title, and interest of the Company in and to the Company Property, the Secretary shall within 60 days of acceptance of delivery of said deed, unconditionally and without limitation except as provided herein, relinquish to the Company all right, title, and interest of the United States in and to the Federal Property and shall evidence that relinquishment by conveying to the Company a quitclaim deed to the Federal Property. (b) Relinquishment of Property to Sitka.—Upon relinquishment of the Federal Property to the Company under subsection (a), the Company shall transfer all right, title, and interest of the Company in the Sitka Property to Sitka. (c) Availability of Maps.—The maps referred to in section 3(3) depicting the Company Property and in section 3(4) depicting the Federal Property shall be on file and available for public inspection in the Office of the Forest Supervisor, Chatham Area, Tongass National Forest, in Sitka, Alaska. The maps referred to in section 3(8) depicting the Sitka Property shall be on file and available for public inspection in the Office of the Manager of the city and borough of Sitka, Alaska, until the conveyance described in subsection (b), at which time the maps shall be recorded along with the deed.111 STAT. 1271
SEC. 5. PROCESSING OF AND TERMS AND CONDITIONS RELATING TO LAND EXCHANGE.

16 USC 431 note, 1132 note.

 (a) Surveys.—Notwithstanding any other provision of law, the Secretary of the Interior may conduct and approve all cadastral surveys that are necessary for completion of the exchange. The cost of any surveys shall be borne by the Company. (b) Equal Value Exchange.—The values of the Federal Property and the Company Property are deemed to be of equal value. (c) Administration.—The Secretary is directed to implement and administer the rights and obligations of the United States under this Act. (d) Cleanup Obligations.—Nothing in this Act shall impact or alter the Company’s rights, duties, and obligations regarding investigation, remediation, cleanup, and restoration under its September 10, 1995, Commitment Agreement with the State of Alaska or other applicable law. The Company shall use its property consistent with all restrictive covenants, including those restrictive covenants recorded on September 4, 1997. (e) Title Standards.—Title to the Company Property to be conveyed to the United States shall be acceptable to the Secretary consistent with the title review standard of the Attorney General of the United States.
SEC. 6. GENERAL PROVISIONS.

16 USC 431 note, 1132 note.

 (a) Management of Company Property.—Upon acquisition of the Company Property by the United States pursuant to this Act, said property shall be managed as a part of the Admiralty Island National Monument and the Kootznoowoo Wilderness. (b) Authorization To Negotiate for Acquisition of Property.—In furtherance of the purposes of the Kootznoowoo Wilderness, the Secretary, acting through the Forest Service, is authorized to enter into negotiations with the owners of private property in Chaik Bay on Admiralty Island, with the objective of acquiring such property. The Secretary is authorized to enter into an option to purchase or an exchange agreement with the owners of such property to be effected either through existing administrative mechanisms provided by law and regulation, or by subsequent ratification by Act of Congress.
Approved October 10, 1997.
LEGISLATIVE HISTORY—H.R. 1948 (S. 1015): HOUSE REPORTS: No. 105–261 (Comm. on Resources). SENATE REPORTS: No. 105–90 accompanying S. 1015 (Comm. on Energy and Natural Resources). CONGRESSIONAL RECORD, Vol. 143 (1997):

Sept. 23, considered and passed House.

Sept. 30, considered and passed Senate.

 Public Law 105–61: Making appropriations for the Treasury Department, the United States Postal Service, the Executive Office of the President, and certain Independent Agencies, for the fiscal year ending September 30, 1998, and for other purposes. Public Law61 Public Law 105–61 111 Stat. 1272 1997-10-10 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1272

*Note: This law contains an item that was cancelled by the President pursuant to the Line Item Veto Act. For more information, see the Federal Register entry under “LEGISLATIVE HISTORY” at the end of this law.

 Public Law105–61 105th Congress
An Act Making appropriations for the Treasury Department, the United States Postal Service, the Executive Office of the President, and certain Independent Agencies, for the fiscal year ending September 30, 1998, and for other purposes.

Oct. 10, 1997

[H.R. 2378]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Treasury and General Government Appropriations Act, 1998.
That the following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 1998, and for other purposes, namely:
<num value="I">TITLE I—</num><sidenote><p class="indent0 firstIndent0 fontsize8">Treasury Department Appropriations Act, 1998.</p></sidenote><heading>DEPARTMENT OF THE TREASURY</heading> <appropriations level="intermediate"> <heading>Departmental Offices</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Departmental Offices including operation and maintenance of the Treasury Building and Annex; hire of passenger motor vehicles; maintenance, repairs, and improvements of, and purchase of commercial insurance policies for, real properties leased or owned overseas, when necessary for the performance of official business; not to exceed $2,900,000 for official travel expenses; not to exceed $150,000 for official reception and representation expenses; not to exceed $258,000 for unforeseen emergencies of a confidential nature, to be allocated and expended under the direction of the Secretary of the Treasury and to be accounted for solely on his certificate; $114,771,000: <proviso><i>Provided,</i> That section 113(2) of the Fiscal Year 1997 Department of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t18/s841">18 USC 841 note</ref>.</p></sidenote>Act, Public Law 104–208 (110 Stat. 3009–22) is amended by striking “<quotedText>12 months</quotedText>” and inserting in lieu thereof “2 years”:</proviso> <proviso><i>Provided further,</i> That the Office of Foreign Assets Control shall be funded at no less than $4,500,000:</proviso> <proviso><i>Provided further,</i> That chapter 9 of the fiscal year 1997 Supplemental Appropriations Act for Recovery from Natural Disasters, and for Overseas Peacekeeping Efforts, including those in Bosnia, Public Law 105–18 (111 Stat. 19596) is amended by inserting after the “County of Denver” in each instance “the County of Arapahoe”:</proviso> <proviso><i>Provided further,</i> That $200,000 are provided to conduct a comprehensive study of gambling’s effects on bankruptcies in the United States:</proviso> <proviso><i>Provided further,</i> That for necessary expenses of the Office of Enforcement, including, but not limited to, making transfers of funds to Treasury bureaus and offices for programs, projects or initiatives directed as the investigation or prosecution of violent crime, $1,600,000, to remain <page identifier="/us/stat/111/1273">111 STAT. 1273</page>available until expended, to be derived from balances available in the Violent Crime Reduction Trust Fund.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Office of Professional Responsibility</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Office of Professional Responsibility, including purchase and hire of passenger motor vehicles, $1,250,000: <proviso><i>Provided,</i> That the Under Secretary of Treasury for Enforcement shall task the Office of Professional Responsibility to conduct a comprehensive review of integrity issues and other matters related to the potential vulnerability of the United States Customs Service to corruption, to include examination of charges of professional misconduct and corruption as well as analysis of the efficacy of departmental and bureau internal affairs systems.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Automation Enhancement</heading> <subheading>(including transfer of funds)</subheading> <content>For the development and acquisition of automatic data processing equipment, software, and services for the Department of the Treasury, $25,889,000, of which $11,000,000 shall be available to the United States Customs Service for the Automated Commercial Environment project, of which $6,100,000 shall be available to Departmental Offices for the International Trade Data System, and of which $8,789,000 shall be available to Departmental Offices to modernize its information technology infrastructure and for business solution software: <proviso><i>Provided,</i> That these funds shall remain available until September 30, 1999:</proviso> <proviso><i>Provided further,</i> That these funds shall be transferred to accounts and in amounts as necessary to satisfy the requirements of the Department’s offices, bureaus, and other organizations:</proviso> <proviso><i>Provided further,</i> That this transfer authority shall be in addition to any other transfer authority provided in this Act:</proviso> <proviso><i>Provided further,</i> That none of the funds appropriated shall be used to support or supplement Internal Revenue Service appropriations for Information Systems:</proviso> <proviso><i>Provided further,</i> That of the $27,000,000 provided under this heading in Public Law 104208, $12,000,000 shall remain available until September 30, 1999:</proviso> <proviso><i>Provided further,</i> That none of the funds appropriated for the International<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> Trade Data System may be obligated until the Department has submitted a report on its system development plan to the Committees on Appropriations:</proviso> <proviso><i>Provided further,</i> That the funds appropriated for the Automated Commercial Environment project may not be obligated until the Commissioner of Customs has submitted a systems architecture plan and a milestone schedule for the development and implementation of all projects included in the systems architecture plan, and the plan and schedule have been reviewed by the General Accounting Office and approved by the Committees on Appropriations.</proviso><page identifier="/us/stat/111/1274">111 STAT. 1274</page></content> </appropriations> <appropriations level="intermediate"> <heading>Office of Inspector General</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(including transfer of funds)</subheading> <content>For necessary expenses of the Office of Inspector General in carrying out the provisions of the Inspector General Act of 1978, as amended, not to exceed $2,000,000 for official travel expenses; including hire of passenger motor vehicles; and not to exceed $100,000 for unforeseen emergencies of a confidential nature, to be allocated and expended under the direction of the Inspector General of the Treasury; $29,719,000, of which $26,034 shall be transferred to the “Departmental Offices” appropriation for the reimbursement of Secret Service personnel in accordance with section 115 of this Act.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Treasury Building and Annex Repair and Restoration</heading> <content>For the repair, alteration, and improvement of the Treasury Building and Annex, $10,484,000, to remain available until September 30, 1999.</content> </appropriations> <appropriations level="intermediate"> <heading>Financial Crimes Enforcement Network</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Financial Crimes Enforcement Network, including hire of passenger motor vehicles; travel expenses of non-Federal law enforcement personnel to attend meetings concerned with financial intelligence activities, law enforcement, and financial regulation; not to exceed $14,000 for official reception and representation expenses; and for assistance to Federal law enforcement agencies, with or without reimbursement; $22,835,000: <proviso><i>Provided,</i> That funds appropriated in this account may be used to procure personal services contracts.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Violent Crime Reduction Programs</heading> <subheading>(including transfer of funds)</subheading> <chapeau>For activities authorized by Public Law 103–322, to remain available until expended, which shall be derived from the Violent Crime Reduction Trust Fund, as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>As authorized by section 190001(e), $131,000,000; of which $19,421,000 shall be available to the Bureau of Alcohol, Tobacco and Firearms, including $3,000,000 for administering the Gang Resistance Education and Training program, $3,974,000 for the canine explosives detection program, $5,200,000 for CEASEFIRE/ IBIS, $5,639,000 for vehicles and communications systems, and $1,608,000 for collection of information on arson and explosives; of which $1,000,000 shall be available to the Financial Crimes Enforcement Network for the Secure Outreach/Encrypted Transmission Program; of which $15,731,000 shall be available to the United States Secret Service, including $6,700,000 for vehicle replacement, $1,460,000 to provide technical assistance and to assess the effectiveness of new technology intended to combat identity-based crimes, $5,000,000 for investigations of counterfeiting, and $2,571,000 for forensic and related support of investigations <page identifier="/us/stat/111/1275">111 STAT. 1275</page>of missing and exploited children, of which $571,000 shall be available as a grant for activities related to the investigations of exploited children and shall remain available until expended; of which $60,648,000 shall be available for the United States Customs Service, including $15,000,000 for high energy container x-ray systems and automated targeting systems, $5,735,000 for laboratory modernization, $7,400,000 for vehicle replacement, $8,413,000 for anti-smuggling inspectors, $9,500,000 for the passenger processing initiative, $4,000,000 for redeploying agents and inspectors to high threat drug zones, $4,500,000 for Forward-Looking Infrared capabilities, $1,100,000 for construction of canopies for inspection of outbound vehicles along the Southwest border, and $5,000,000 to acquire vehicle and container inspection systems; of which $20,200,000 shall be available to the Office of National Drug Control Policy, including $13,000,000 to the Counterdrug Technology Assessment Center for a program to transfer technology to State and local law enforcement agencies, $6,000,000 for a Federal Drug Free-Prison Zone demonstration project, and $1,200,000 for Model State Drug Law Conferences; and of which $3,000,000 is provided to Federal Drug Control Programs for the Rocky Mountain HIDTA;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>As authorized by section 32401, $10,000,000 to the Bureau of Alcohol, Tobacco and Firearms for disbursement through grants, cooperative agreements, or contracts to local governments for Gang Resistance Education and Training: <proviso><i>Provided,</i> That notwithstanding sections 32401 and 310001, such funds shall be allocated to State and local law enforcement and prevention organizations;</proviso></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>As authorized by section 180103, $1,000,000 to the Federal Law Enforcement Training Center for specialized training for rural law enforcement officers.</content></paragraph> </appropriations> <appropriations level="intermediate"> <heading>Federal Law Enforcement Training Center</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Federal Law Enforcement Training Center, as a bureau of the Department of the Treasury, including materials and support costs of Federal law enforcement basic training; purchase (not to exceed 52 for police-type use, without regard to the general purchase price limitation) and hire of passenger motor vehicles; for expenses for student athletic and related activities; uniforms without regard to the general purchase price limitation for the current fiscal year; the conducting of and participating in firearms matches and presentation of awards; for public awareness and enhancing community support of law enforcement training; not to exceed $9,500 for official reception and representation expenses; room and board for student interns; and services as authorized by 5 U.S.C. 3109; $64,663,000, of which up to $13,034,000 for materials and support costs of Federal law enforcement basic training shall remain available until September 30, 2000: <proviso><i>Provided,</i> That the Center is authorized to accept and<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s3711">42 USC 3771 note</ref>.</p></sidenote> use gifts of property, both real and personal, and to accept services, for authorized purposes, including funding of a gift of intrinsic value which shall be awarded annually by the Director of the Center to the outstanding student who graduated from a basic training program at the Center during the previous fiscal year, which shall be funded only by gifts received through the Center’s gift authority:</proviso> <proviso><i>Provided further,</i> That notwithstanding any other provision of law, students attending training at any Federal Law <page identifier="/us/stat/111/1276">111 STAT. 1276</page>Enforcement Training Center site shall reside in on-Center or Center-provided housing, insofar as available and in accordance with Center policy:</proviso> <proviso><i>Provided further,</i> That funds appropriated in this account shall be available, at the discretion of the Director, for: training United States Postal Service law enforcement personnel and Postal police officers; State and local government law enforcement training on a space-available basis; training of foreign law enforcement officials on a space-available basis with reimbursement of actual costs to this appropriation, except that reimbursement may be waived by the Secretary for law enforcement training activities in foreign countries undertaken pursuant to section 801 of the Antiterrorism and Effective Death Penalty Act of 1996, Public Law 104–32; training of private sector security officials on a space-available basis with reimbursement of actual costs to this appropriation; and travel expenses of non-Federal personnel to attend course development meetings and training at the Center:</proviso> <proviso><i>Provided further,</i> That the Center is authorized to obligate funds in anticipation of reimbursements from agencies receiving training at the Federal Law Enforcement Training Center, except that total obligations at the end of the fiscal year shall not exceed total budgetary resources available at the end of the fiscal year:</proviso> <proviso><i>Provided further,</i> That the Federal Law Enforcement Training Center is authorized to provide short-term medical services for students undergoing training at the Center.</proviso></content> </appropriations> <appropriations level="small"> <heading>acquisition, construction, improvements, and related expenses</heading> <content>For expansion of the Federal Law Enforcement Training Center, for acquisition of necessary additional real property and facilities, and for ongoing maintenance, facility improvements, and related expenses, $32,548,000, to remain available until expended.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Interagency Law Enforcement</heading> <appropriations level="small"> <heading>interagency crime and drug enforcement</heading> <content>For expenses necessary for the detection and investigation of individuals involved in organized crime drug trafficking, including cooperative efforts with State and local law enforcement, $73,794,000, of which $7,827,000 shall remain available until expended.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Financial Management Service</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Financial Management Service, $202,490,000, of which not to exceed $13,235,000 shall remain available until September 30, 2000 for information systems modernization<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s391">12 USC 391a</ref>.</p></sidenote> initiatives: <proviso><i>Provided,</i> That beginning in fiscal year 1998 and thereafter, there are appropriated such sums as may be necessary to reimburse Federal Reserve Banks in their capacity as depositaries and fiscal agents for the United States for all services required or directed by the Secretary of the Treasury to be performed by such banks on behalf of the Treasury or other Federal agencies.</proviso><page identifier="/us/stat/111/1277">111 STAT. 1277</page></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Bureau of Alcohol, Tobacco and Firearms</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Bureau of Alcohol, Tobacco and Firearms, including purchase of not to exceed 650 vehicles for police-type use for replacement only and hire of passenger motor vehicles; hire of aircraft; services of expert witnesses at such rates as may be determined by the Director; for payment of per diem and/or subsistence allowances to employees where an assignment to the National Response Team during the investigation of a bombing or arson incident requires an employee to work 16 hours or more per day or to remain overnight at his or her post of duty; not to exceed $12,500 for official reception and representation expenses; for training of State and local law enforcement agencies with or without reimbursement, including training in connection with the training and acquisition of canines for explosives and fire accelerants detection; and provision of laboratory assistance to State and local agencies, with or without reimbursement; $478,934,000, of which $1,250,000 may be used for the Youth Crime Gun Interdiction Initiative; of which not to exceed $1,000,000 shall be available for the payment of attorneys’ fees as provided by 18 U.S.C. 924(d)(2); and of which $1,000,000 shall be available for the equipping of any vessel, vehicle, equipment, or aircraft available for official use by a State or local law enforcement agency if the conveyance will be used in drug-related joint law enforcement operations with the Bureau of Alcohol, Tobacco and Firearms and for the payment of overtime salaries, travel, fuel, training, equipment, and other similar costs of State and local law enforcement officers that are incurred in joint operations with the Bureau of Alcohol, Tobacco and Firearms: <proviso><i>Provided,</i> That no funds made available by this or any other Act may be used to transfer the functions, missions, or activities of the Bureau of Alcohol, Tobacco and Firearms to other agencies or Departments in the fiscal year ending on September 30, 1998:</proviso> <proviso><i>Provided further,</i> That no funds appropriated herein shall be available for salaries or administrative expenses in connection with consolidating or centralizing, within the Department of the Treasury, the records, or any portion thereof, of acquisition and disposition of firearms maintained by Federal firearms licensees:</proviso> <proviso><i>Provided further,</i> That no funds appropriated herein shall be used to pay administrative expenses or the compensation of any officer or employee of the United States to implement an amendment or amendments to 27 CFR 178.118 or to change the definition of “Curios or relics” in 27 CFR 178.11 or remove any item from ATF Publication 5300.11 as it existed on January 1, 1994:</proviso> <proviso><i>Provided further,</i> That none of the funds appropriated herein shall be available to investigate or act upon applications for relief from Federal firearms disabilities under 18 U.S.C. 925(c):</proviso> <proviso><i>Provided further,</i> That such funds shall be available to investigate and act upon applications filed by corporations for relief from Federal firearms disabilities under 18 U.S.C. 925(c):</proviso> <proviso><i>Provided further,</i> That no funds in this Act may be used to provide ballistics imaging equipment to any State or local authority who has obtained similar equipment through a Federal grant or subsidy unless the State or local authority agrees to return that equipment or to repay that grant or subsidy to the Federal Government:</proviso> <proviso><i>Provided further,</i> That no funds under this Act may be used to <page identifier="/us/stat/111/1278">111 STAT. 1278</page>electronically retrieve information gathered pursuant to 18 U.S.C. 923(g)(4) by name or any personal identification code.</proviso></content> </appropriations> <appropriations level="small"> <heading>laboratory facilities</heading> <content>For necessary expenses for construction of a new facility or facilities to house the Bureau of Alcohol, Tobacco and Firearms National Laboratory Center and the Fire Investigation Research and Development Center, not to exceed 185,000 occupiable square feet, $55,022,000 to remain available until expended: <proviso><i>Provided,</i> That these funds shall not be available until a prospectus for the Laboratory Facilities is reviewed and resolutions of authorization are approved by the House Committee on Transportation and Infrastructure and the Senate Committee on Environment and Public Works.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>United States Customs Service</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the United States Customs Service, including purchase and lease of up to 1,050 motor vehicles of which 985 are for replacement only and of which 1,030 are for police-type use and commercial operations; hire of motor vehicles; contracting with individuals for personal services abroad; not to exceed $30,000 for official reception and representation expenses; and awards of compensation to informers, as authorized by any Act enforced by the United States Customs Service; $1,522,165,000, of which such sums as become available in the Customs User Fee Account, except sums subject to section 13031(f)(3) of the Consolidated Omnibus Reconciliation Act of 1985, as amended (19 U.S.C. 58c(f)(3)), shall be derived from that Account; of the total, not to exceed $150,000 shall be available for payment for rental space in connection with preclearance operations, and not to exceed $4,000,000 shall be available until expended for research, not to exceed $5,000,000 shall be available until expended for conducting special operations pursuant to 19 U.S.C. 2081, and up to $6,000,000 shall be available until expended for the procurement of automation infrastructure items, including hardware, software, and installation: <proviso><i>Provided,</i> That uniforms may be purchased without regard to the general purchase price limitation for the current fiscal year:</proviso> <proviso><i>Provided further,</i> That $1,250,000 shall be available to fund the Global Trade and Research Program at the Montana World Trade Center:</proviso> <proviso><i>Provided further,</i> That notwithstanding any other provision of law, the fiscal year aggregate overtime limitation prescribed in subsection 5(c)(1) of the Act of February 13, 1911 (19 U.S.C. 261 and 267) shall be $30,000.</proviso></content> </appropriations> <appropriations level="small"> <heading>operations, maintenance and procurement, air and marine interdiction programs</heading> <content>For expenses, not otherwise provided for, necessary for the operation and maintenance of marine vessels, aircraft, and other related equipment of the Air and Marine Programs, including operational training and mission-related travel, and rental payments for facilities occupied by the air or marine interdiction and demand reduction programs, the operations of which include: the interdiction of narcotics and other goods; the provision of support to Customs <page identifier="/us/stat/111/1279">111 STAT. 1279</page>and other Federal, State, and local agencies in the enforcement or administration of laws enforced by the Customs Service; and, at the discretion of the Commissioner of Customs, the provision of assistance to Federal, State, and local agencies in other law enforcement and emergency humanitarian efforts; $92,758,000, which shall remain available until expended: <proviso><i>Provided,</i> That no aircraft or other related equipment, with the exception of aircraft which is one of a kind and has been identified as excess to Customs requirements and aircraft which has been damaged beyond repair, shall be transferred to any other Federal agency, department, or office outside of the Department of the Treasury, during fiscal year 1998 without the prior approval of the Committees on Appropriations.</proviso></content> </appropriations> <appropriations level="small"> <heading>customs services at small airports</heading> <subheading>(to be derived from fees collected)</subheading> <content>Beginning in fiscal year 1998 and thereafter, such sums as<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t19/s58b–1">19 USC 58b–1</ref>.</p></sidenote> may be necessary for expenses for the provision of Customs services at certain small airports or other facilities when authorized by law and designated by the Secretary of the Treasury, including expenditures for the salary and expenses of individuals employed to provide such services, to be derived from fees collected by the Secretary pursuant to section 236 of Public Law 98–573 for each of these airports or other facilities when authorized by law and designated by the Secretary, and to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>harbor maintenance fee collection</heading> <content>For administrative expenses related to the collection of the Harbor Maintenance Fee, pursuant to Public Law 103–182, $3,000,000, to be derived from the Harbor Maintenance Trust Fund and to be transferred to and merged with the Customs “Salaries and Expenses” account for such purposes.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Bureau of the Public Debt</heading> <appropriations level="small"> <heading>administering the public debt</heading> <content>For necessary expenses connected with any public-debt issues of the United States, $173,826,000, of which not to exceed $2,500 shall be available for official reception and representation expenses, and of which $2,000,000 shall remain available until September 30, 2000 for information systems modernization initiatives: <proviso><i>Provided,</i> That the sum appropriated herein from the General Fund for fiscal year 1998 shall be reduced by not more than $4,400,000 as definitive security issue fees and Treasury Direct Investor Account Maintenance fees are collected, so as to result in a final fiscal year 1998 appropriation from the General Fund estimated at $169,426,000, and in addition, $20,000, to be derived from the Oil Spill Liability Trust Fund to reimburse the Bureau for administrative and personnel expenses for financial management of the Fund, as authorized by section 102 of Public Law 101–380:</proviso> <proviso><i>Provided further,</i> That notwithstanding any other provisions of law, effective upon enactment, the Bureau of the Public Debt shall be fully and directly reimbursed by the funds described in Public Law <page identifier="/us/stat/111/1280">111 STAT. 1280</page>101–136, title I, section 104, 103 Stat. 789 for costs and services performed by the Bureau in the administration of such funds.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Internal Revenue Service</heading> <appropriations level="small"> <heading>processing, assistance, and management</heading> <content>For necessary expenses of the Internal Revenue Service, not otherwise provided for; including processing tax returns; revenue accounting; providing tax law and account assistance to taxpayers by telephone and correspondence; matching information returns and tax returns; management services; rent and utilities; and inspection; including purchase (not to exceed 150 for replacement only for police-type use) and hire of passenger motor vehicles (31 U.S.C. 1343(b)); and services as authorized by 5 U.S.C. 3109, at such rates as may be determined by the Commissioner; $2,925,874,000, of which up to $3,700,000 shall be for the Tax Counseling for the Elderly Program, and of which not to exceed $25,000 shall be for official reception and representation expenses.</content> </appropriations> <appropriations level="small"> <heading>tax law enforcement</heading> <subheading>(including rescission)</subheading> <content>For necessary expenses of the Internal Revenue Service for determining and establishing tax liabilities; tax and enforcement litigation; technical rulings; examining employee plans and exempt organizations; investigation and enforcement activities; securing unfiled tax returns; collecting unpaid accounts; statistics of income and compliance research; the purchase (for police-type use, not to exceed 850), and hire of passenger motor vehicles (31 U.S.C. 1343(b)); and services as authorized by 5 U.S.C. 3109, at such rates as may be determined by the Commissioner, $3,142,822,000: <proviso><i>Provided,</i> That of the funds appropriated under this heading in Public Law 104–208, $26,000,000 is rescinded and in Public Law 104–52, $6,000,000 is rescinded.</proviso></content> </appropriations> <appropriations level="small"> <heading>earned income tax credit compliance initiative</heading> <content>For funding essential earned income tax credit compliance and error reduction initiatives pursuant to section 5702 of the Balanced Budget Act of 1997 (Public Law 105–33), $138,000,000, of which not to exceed $10,000,000 may be used to reimburse the Social Security Administration for the costs of implementing section 1090 of the Taxpayer Relief Act of 1997.</content> </appropriations> <appropriations level="small"> <heading>information systems</heading> <content>For necessary expenses for data processing and telecommunications support for Internal Revenue Service activities, including developmental information systems and operational information systems; the hire of passenger motor vehicles (31 U.S.C. 1343(b)); and services as authorized by 5 U.S.C. 3109, at such rates as may be determined by the Commissioner, $1,272,487,000, which shall be available until September 30, 1999: <proviso><i>Provided,</i> That under the heading “Information Systems” in Public Law 104–208 (110 Stat. 3009), the following is deleted: “of which no less than $130,075,000 shall be available for Tax Systems Modernization (TSM) development and deployment”:</proviso> <proviso><i>Provided further,</i> That the <page identifier="/us/stat/111/1281">111 STAT. 1281</page>Internal Revenue Service shall submit a reprogramming request, of which no less than $87,000,000 shall be available for Year 2000 conversion:</proviso> <proviso><i>Provided further,</i> That none of the funds under this heading, or funds made available under this heading in any previous Acts, may be obligated to award or otherwise initiate a Prime contract to implement the Internal Revenue Service’s Modernization Blueprint submitted to Congress on May 15, 1997, although funds may be used to develop a Request for Proposals for the Prime contract.</proviso></content> </appropriations> <appropriations level="small"> <heading>information technology investments</heading> <content>For necessary expenses for the capital asset acquisition of information technology systems, including management and related contractual costs of said acquisition, including contractual costs associated with operations as authorized by 5 U.S.C. 3109, $325,000,000, which shall remain available until September 30, 2000: <proviso><i>Provided,</i> That none of these funds is available for obligation until September 1, 1998:</proviso> <proviso><i>Provided further,</i> That none of these funds shall be obligated until the Internal Revenue Service and the Department of the Treasury submits to Congress for approval, a plan for expenditure that: (1) implements the Internal Revenue Service’s Modernization Blueprint submitted to Congress on May 15, 1997; (2) meets the information systems investment guidelines established by the Office of Management and Budget in the fiscal year 1998 budget; (3) has been reviewed and approved by the Internal Revenue Service’s Investment Review Board, the Office of Management and Budget, and the Department of the Treasury’s Modernization Management Board, and has been reviewed by the General Accounting Office; (4) meets the requirements of the May 15, 1997 Internal Revenue Service’s Systems Life Cycle program; and (5) is in compliance with acquisition rules, requirements, guidelines, and systems acquisition management practices of the Federal Government.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Administrative Provisions</heading> <appropriations level="small"> <heading>internal revenue service</heading> <section> <num value="101"><inline class="smallCaps">Section</inline> 101.</num> <content class="inline">Not to exceed 5 percent of any appropriation made available in this Act to the Internal Revenue Service may be transferred to any other Internal Revenue Service appropriation upon the advance approval of the House and Senate Committees on Appropriations.</content> </section> <section> <num value="102"><inline class="smallCaps">Sec</inline>. 102.</num> <content class="inline">The Internal Revenue Service shall maintain a training<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s7803">26 USC 7803 note</ref>.</p></sidenote> program to ensure that Internal Revenue Service employees are trained in taxpayers’ rights, in dealing courteously with the taxpayers, and in cross-cultural relations.</content> </section> <section> <num value="103"><inline class="smallCaps">Sec</inline>. 103.</num> <content class="inline">The funds provided in this Act for the Internal Revenue Service shall be used to provide, as a minimum, the fiscal year 1995 level of service, staffing, and funding for Taxpayer Services.</content> </section> <section> <num value="104"><inline class="smallCaps">Sec</inline>. 104.</num> <content class="inline">None of the funds appropriated by this title shall be used in connection with the collection of any underpayment of any tax imposed by the Internal Revenue Code of 1986 unless the conduct of officers and employees of the Internal Revenue Service in connection with such collection, including any private sector employees under contract to the Internal Revenue Service, <page identifier="/us/stat/111/1282">111 STAT. 1282</page>complies with subsection (a) of section 805 (relating to communications in connection with debt collection), and section 806 (relating to harassment or abuse), of the Fair Debt Collection Practices Act (15 U.S.C. 1692).</content> </section> <section> <num value="105"><inline class="smallCaps">Sec</inline>. 105.</num><sidenote><p class="indent0 firstIndent0 fontsize8">Confidentiality.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6103">26 USC 6103 note</ref>.</p></sidenote> <content class="inline">The Internal Revenue Service shall institute and enforce policies and procedures which will safeguard the confidentiality of taxpayer information.</content> </section> <section> <num value="106"><inline class="smallCaps">Sec</inline>. 106.</num> <content class="inline">Funds made available by this or any other Act to the Internal Revenue Service shall be available for improved facilities and increased manpower to provide sufficient and effective 1–800 help line for taxpayers. The Commissioner shall continue to make the improvement of the Internal Revenue Service 1–800 help line service a priority and allocate resources necessary to increase phone lines and staff to improve the Internal Revenue Service 1–800 help line service.</content> </section> <section> <num value="107"><inline class="smallCaps">Sec</inline>. 107.</num> <content class="inline">Hereafter, no field support reorganization of the Internal Revenue Service shall be undertaken in Aberdeen, South Dakota until the Internal Revenue Service toll-free help phone line assistance program reaches at least an 80 percent service level.<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p><p class="indent0 firstIndent0 fontsize8">Certification.</p></sidenote> The Commissioner shall submit to Congress a report and the General Accounting Office shall certify to Congress that the 80 percent service level has been met.</content> </section> <section> <num value="108"><inline class="smallCaps">Sec</inline>. 108.</num> <content class="inline">Notwithstanding any other provision of law, no reorganization of the field office structure of the Internal Revenue Service Criminal Investigation division will result in a reduction of criminal investigators in Wisconsin and South Dakota from the 1996 level.</content> </section> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>United States Secret Service</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the United States Secret Service, including purchase not to exceed 705 vehicles for police-type use, of which 675 shall be for replacement only, and hire of passenger motor vehicles; hire of aircraft; training and assistance requested by State and local governments, which may be provided without reimbursement; services of expert witnesses at such rates as may be determined by the Director; rental of buildings in the District of Columbia, and fencing, lighting, guard booths, and other facilities on private or other property not in Government ownership or control, as may be necessary to perform protective functions; for payment of per diem and/or subsistence allowances to employees where a protective assignment during the actual day or days of the visit of a protectee require an employee to work 16 hours per day or to remain overnight at his or her post of duty; the conducting of and participating in firearms matches; presentation of awards; for travel of Secret Service employees on protective missions without regard to the limitations on such expenditures in this or any other Act if approval is obtained in advance from the House and Senate Committees on Appropriations; for repairs, alterations, and minor construction at the James J. Rowley Secret Service Training Center; for research and development; for making grants to conduct behavioral research in support of protective research and operations; not to exceed $20,000 for official reception and representation expenses; for sponsorship of a conference for the Women in Federal Law Enforcement, to be held during fiscal year 1998; not to exceed $50,000 to provide technical assistance <page identifier="/us/stat/111/1283">111 STAT. 1283</page>and equipment to foreign law enforcement organizations in counterfeit investigations; for payment in advance for commercial accommodations as may be necessary to perform protective functions; and for uniforms without regard to the general purchase price limitation for the current fiscal year; $564,348,000.</content> </appropriations> <appropriations level="small"> <heading>acquisition, construction, improvement, and related expenses</heading> <content>For necessary expenses of construction, repair, alteration, and improvement of facilities, $8,799,000, to remain available until expended.</content> </appropriations> </appropriations> <level> <heading>GENERAL PROVISIONS</heading> <level> <heading class="centered"><inline class="smallCaps">Department of the Treasury</inline></heading> <section> <num value="110"><inline class="smallCaps">Sec</inline>. 110.</num> <content class="inline">Any obligation or expenditure by the Secretary in connection with law enforcement activities of a Federal agency or a Department of the Treasury law enforcement organization in accordance with 31 U.S.C. 9703(g)(4)(B) from unobligated balances remaining in the Fund on September 30, 1998, shall be made in compliance with reprogramming guidelines.</content> </section> <section> <num value="111"><inline class="smallCaps">Sec</inline>. 111.</num> <content class="inline">Appropriations to the Department of the Treasury in this Act shall be available for uniforms or allowances therefor, as authorized by law (5 U.S.C. 5901), including maintenance, repairs, and cleaning; purchase of insurance for official motor vehicles operated in foreign countries; purchase of motor vehicles without regard to the general purchase price limitations for vehicles purchased and used overseas for the current fiscal year; entering into contracts with the Department of State for the furnishing of health and medical services to employees and their dependents serving in foreign countries; and services authorized by 5 U.S.C. 3109.</content> </section> <section> <num value="112"><inline class="smallCaps">Sec</inline>. 112.</num> <content class="inline">The funds provided to the Bureau of Alcohol, Tobacco and Firearms for fiscal year 1998 in this Act for the enforcement of the Federal Alcohol Administration Act shall be expended in a manner so as not to diminish enforcement efforts with respect to section 105 of the Federal Alcohol Administration Act.</content> </section> <section> <num value="113"><inline class="smallCaps">Sec</inline>. 113.</num> <content class="inline">Not to exceed 2 percent of any appropriations in this Act made available to the Federal Law Enforcement Training Center, Financial Crimes Enforcement Network, Bureau of Alcohol, Tobacco and Firearms, United States Customs Service, and United States Secret Service may be transferred between such appropriations upon the advance approval of the House and Senate Committees on Appropriations. No transfer may increase or decrease any such appropriation by more than 2 percent.</content> </section> <section> <num value="114"><inline class="smallCaps">Sec</inline>. 114.</num> <content class="inline">Not to exceed 2 percent of any appropriations in this Act made available to the Departmental Offices, Office of Inspector General, Financial Management Service, and Bureau of the Public Debt, may be transferred between such appropriations upon the advance approval of the House and Senate Committees on Appropriations. No transfer may increase or decrease any such appropriation by more than 2 percent.</content> </section> <section> <num value="115"><inline class="smallCaps">Sec</inline>. 115.</num> <content class="inline">The Secretary of the Treasury shall pay from amounts transferred to the “Departmental Offices” appropriation, up to $26,034 to reimburse Secret Service personnel for any attorney fees and costs they incurred with respect to investigation by the <page identifier="/us/stat/111/1284">111 STAT. 1284</page>Department of the Treasury Inspector General concerning testimony provided to Congress: <proviso><i>Provided,</i> That the Secretary of the Treasury shall pay an individual in full upon submission by the individual of documentation verifying the attorney fees and costs:</proviso> <proviso><i>Provided further,</i> That the liability of the United States shall not be inferred from enactment of or payment under this provision:</proviso> <proviso><i>Provided further,</i> That the Secretary of the Treasury shall not pay any claim filed under this section that is filed later than 120 days after the date of enactment of this Act:</proviso> <proviso><i>Provided further,</i> That payment under this provision, when accepted, shall be in full satisfaction of all claims of, or on behalf of, the individual Secret Service agents who were the subjects of said investigation.</proviso></content> </section> <section> <num value="116"><inline class="smallCaps">Sec</inline>. 116.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t31/s301">31 USC 301 note</ref>.</p></sidenote> <subsection class="inline"><num value="a">(a)</num><paragraph class="inline"><num value="1">(1)</num> <content>Effective beginning on the date determined under paragraph (2), the compensation and other emoluments attached to the Office of Secretary of the Treasury shall be those that would then apply if Public Law 103–2 (107 Stat. 4; 31 U.S.C. 301 note) had never been enacted.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> <chapeau>Paragraph (1) shall become effective on the later of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>the day after the date on which the individual holding the Office of Secretary of the Treasury on January 1, 1997, ceases to hold that office; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>the date of the enactment of this Act.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3)</num> <content>Nothing in this subsection shall be considered to affect the compensation or emoluments due to any individual in connection with any period preceding the date determined under paragraph (2).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>Subsection (b) of the first section of the public law referred to in subsection (a)(1) of this section shall not apply in the case of any appointment the consent of the Senate to which occurs on or after the date of the enactment of this Act.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <content>This section shall not be limited (for purposes of determining whether a provision of this section applies or continues to apply) to fiscal year 1998.</content> </subsection> </section> <section> <num value="117"><inline class="smallCaps">Sec</inline>. 117.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Requirement of Advance Submission of Treasury Testimony</inline>.—</heading><chapeau>During the fiscal year covered by this Act, any officer or employee of the Department of the Treasury who is scheduled to testify before the Committee on Appropriations of the House of Representatives or the Senate, or any of its subcommittees, shall, not less than 7 calendar days (excluding Saturdays, Sundays, and Federal legal public holidays) preceding the scheduled date of the testimony, submit to the committee or subcommittee—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>a written statement of the testimony to be presented, regardless of whether such statement is to be submitted for inclusion in the record of the hearing; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>any other written information to be submitted for inclusion in the record of the hearing.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Limitation on Treasury Clearance Process</inline>.—</heading><chapeau>None of the funds made available in this Act may be used for any clearance process within the Department of the Treasury that could cause a submission beyond the specified time, as officially transmitted by the committee, of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>any corrections to the transcript copy of testimony given before the Committee on Appropriations of the House of Representatives or the Senate, or any of its subcommittees; or<page identifier="/us/stat/111/1285">111 STAT. 1285</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>any information to be provided in writing in response to an oral or written request by such committee or subcommittee for specific information for inclusion in the record of the hearing.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Exception</inline>.—</heading><chapeau>The time periods established in subsections (a) and (b) shall not apply to any specific testimony, or corrections, if the Secretary of the Treasury—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>determines that special circumstances prevent compliance; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>submits to the committee or subcommittee involved a written notification of such determination, including the Secretary’s estimate of the time periods required for specific testimony, information, or corrections.</content></paragraph> </subsection> </section> <section> <num value="118"><inline class="smallCaps">Sec</inline>. 118.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">New Rates of Basic Pay</inline>.—</heading><chapeau>Section 501 of the<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t3/s204">3 USC 204 note</ref>.</p></sidenote> District of Columbia Police and Firemen’s Salary Act of 1958 (District of Columbia Code, section 4–416), is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subsection (b)(1), by striking “<quotedText>Interior</quotedText>” and all that follows through “Treasury,” and inserting “<quotedText>Interior</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by redesignating subsection (c) as subsection (b)(3);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <chapeau>in subsection (b)(3) (as redesignated)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>or to officers and members of the United States Secret Service Uniformed Division</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking “<quotedText>subsection (b) of this section</quotedText>” and inserting “<quotedText>this subsection</quotedText>”; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>by adding after subsection (b) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num><paragraph class="inline"><num value="1">(1)</num> <content>The annual rates of basic compensation of officers and members of the United States Secret Service Uniformed Division, serving in classes corresponding or similar to those in the salary schedule in section 101 (District of Columbia Code, section 4406), shall be fixed in accordance with the following schedule of rates: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> <p xmlns="http://schemas.gpo.gov/xml/uslm" role="title" class="centered">“SALARY SCHEDULE</p> </caption> <thead> <tr> <th rowspan="2" style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Salary class and title</th> <th colspan="9" style="text-align:center; border-top:1px solid black">Service steps</th> </tr> <tr> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">1</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">2</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">3</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">4</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">5</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">6</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">7</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">8</th> <th style="text-align:center; border-top:1px solid black; border-bottom:1px solid black">9</th> </tr> </thead> <tbody> <tr> <td style="text-align:left; border-right:1px solid black" leaders="yes">Class 1: Private</td> <td style="text-align:right; border-right:1px solid black">29,215</td> <td style="text-align:right; border-right:1px solid black">30,088</td> <td style="text-align:right; border-right:1px solid black">31,559</td> <td style="text-align:right; border-right:1px solid black">33,009</td> <td style="text-align:right; border-right:1px solid black">35,331</td> <td style="text-align:right; border-right:1px solid black">37,681</td> <td style="text-align:right; border-right:1px solid black">39,128</td> <td style="text-align:right; border-right:1px solid black">40,593</td> <td style="text-align:right">42,052</td> </tr> <tr> <td style="text-align:left; border-right:1px solid black" leaders="yes">Class 4: Sergeant</td> <td style="text-align:right; border-right:1px solid black">39,769</td> <td style="text-align:right; border-right:1px solid black">41,747</td> <td style="text-align:right; border-right:1px solid black">43,728</td> <td style="text-align:right; border-right:1px solid black">45,718</td> <td style="text-align:right; border-right:1px solid black">47,715</td> <td style="text-align:right; border-right:1px solid black">49,713</td> <td style="border-right:1px solid black" /> <td style="border-right:1px solid black" /> <td /> </tr> <tr> <td style="text-align:left; border-right:1px solid black" leaders="yes">Class 5: Lieutenant</td> <td style="text-align:right; border-right:1px solid black">45,148</td> <td style="text-align:right; border-right:1px solid black">47,411</td> <td style="text-align:right; border-right:1px solid black">49,663</td> <td style="text-align:right; border-right:1px solid black">51,924</td> <td style="text-align:right; border-right:1px solid black">54,180</td> <td style="border-right:1px solid black" /> <td style="border-right:1px solid black" /> <td style="border-right:1px solid black" /> <td /> </tr> <tr> <td style="text-align:left; border-right:1px solid black" leaders="yes">Class 7: Captain</td> <td style="text-align:right; border-right:1px solid black">52,523</td> <td style="text-align:right; border-right:1px solid black">55,155</td> <td style="text-align:right; border-right:1px solid black">57,788</td> <td style="text-align:right; border-right:1px solid black">60,388</td> <td style="border-right:1px solid black" /> <td style="border-right:1px solid black" /> <td style="border-right:1px solid black" /> <td style="border-right:1px solid black" /> <td /> </tr> <tr> <td style="text-align:left; border-right:1px solid black" leaders="yes">Class 8: Inspector</td> <td style="text-align:right; border-right:1px solid black">60,886</td> <td style="text-align:right; border-right:1px solid black">63,918</td> <td style="text-align:right; border-right:1px solid black">66,977</td> <td style="text-align:right; border-right:1px solid black">70,029</td> <td style="border-right:1px solid black" /> <td style="border-right:1px solid black" /> <td style="border-right:1px solid black" /> <td style="border-right:1px solid black" /> <td /> </tr> <tr> <td style="text-align:left; border-right:1px solid black" leaders="yes">Class 9: Deputy Chief</td> <td style="text-align:right; border-right:1px solid black">71,433</td> <td style="text-align:right; border-right:1px solid black">76,260</td> <td style="text-align:right; border-right:1px solid black">81,113</td> <td style="text-align:right; border-right:1px solid black">85,950</td> <td style="border-right:1px solid black" /> <td style="border-right:1px solid black" /> <td style="border-right:1px solid black" /> <td style="border-right:1px solid black" /> <td /> </tr> <tr> <td style="text-align:left; border-right:1px solid black" leaders="yes">Class 10: Assistant Chief</td> <td style="text-align:right; border-right:1px solid black">84,694</td> <td style="text-align:right; border-right:1px solid black">90,324</td> <td style="text-align:right; border-right:1px solid black">95,967</td> <td style="border-right:1px solid black" /> <td style="border-right:1px solid black" /> <td style="border-right:1px solid black" /> <td style="border-right:1px solid black" /> <td style="border-right:1px solid black" /> <td /> </tr> <tr> <td style="text-align:left; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Class 11: Chief of the United States Secret Service Uniformed Division</td> <td style="text-align:right; border-right:1px solid black; border-bottom:1px solid black">98,383</td> <td style="text-align:right; border-right:1px solid black; border-bottom:1px solid black">104,923</td> <td style="border-right:1px solid black; border-bottom:1px solid black" /> <td style="border-right:1px solid black; border-bottom:1px solid black" /> <td style="border-right:1px solid black; border-bottom:1px solid black" /> <td style="border-right:1px solid black; border-bottom:1px solid black" /> <td style="border-right:1px solid black; border-bottom:1px solid black" /> <td style="border-right:1px solid black; border-bottom:1px solid black" /> <td style="border-bottom:1px solid black" /> </tr> </tbody> </table> <page identifier="/us/stat/111/1286">111 STAT. 1286</page> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> <content>Effective at the beginning of the first applicable pay period commencing on or after the first day of the month in which an adjustment takes effect under section 5303 of title 5, United States Code (or any subsequent similar provision of law), in the rates of pay under the General Schedule (or any pay system that may supersede such schedule), the annual rates of basic compensation of officers and members of the United States Secret Service Uniformed Division shall be adjusted by the Secretary of the Treasury by an amount equal to the percentage of such annual rate of pay which corresponds to the overall percentage of the adjustment made in the rates of pay under the General Schedule.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>Locality-based comparability payments authorized under section 5304 of title 5, United States Code, shall be applicable to the basic pay under this section, except locality-based comparability payments may not be paid at a rate which, when added to the rate of basic pay otherwise payable to the officer or member, would cause the total to exceed the rate of basic pay payable for level IV of the Executive Schedule.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>Basic pay, and any locality pay combined with basic pay may not be paid by reason of any provision of this subsection (disregarding any locality-based comparability payment payable under Federal law) at a rate in excess of the rate of basic pay payable for level V of the Executive Schedule contained in subchapter II of chapter 53 of title 5, United States Code.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>Any reference in any law to the salary schedule in section 101 (District of Columbia Code, section 4–406) with respect to officers and members of the United States Secret Service Uniformed Division shall be considered to be a reference to the salary schedule in paragraph (1) of this subsection as adjusted in accordance with this subsection.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num><subparagraph class="inline"><num value="A">(A)</num> <content>Except as otherwise permitted by or under law, no allowance, differential, bonus, award, or other similar cash payment under this title or under title 5, United States Code, may be paid to an officer or member of the United States Secret Service Uniformed Division in a calendar year if, or to the extent that, when added to the total basic pay paid or payable to such officer or member for service performed in such calendar year as an officer or member, such payment would cause the total to exceed the annual rate of basic pay payable for level I of the Executive Schedule, as of the end of such calendar year.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B)</num> <chapeau>This paragraph shall not apply to any payment under the following provisions of title 5, United States Code:</chapeau> <clause class="indent2 fontsize10"><num value="i">“(i)</num> <content>Subchapter III or VII of chapter 55, or section 5596.</content></clause> <clause class="indent2 fontsize10"><num value="ii">“(ii)</num> <content>Chapter 57 (other than section 5753, 5754, or 5755).</content></clause> <clause class="indent2 fontsize10"><num value="iii">“(iii)</num> <content>Chapter 59 (other than section 5928).</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num><subparagraph class="inline"><num value="A">(A)</num> <content>Any amount which is not paid to an officer or member of the United States Secret Service Uniformed Division in a calendar year because of the limitation under paragraph (6) shall be paid to such officer or member in a lump sum at the beginning of the following calendar year.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B)</num> <content>Any amount paid under this paragraph in a calendar year shall be taken into account for purposes of applying the limitations under paragraph (6) with respect to such calendar year.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote> <content>The Office of Personnel Management shall prescribe regulations as may be necessary (consistent with section 5582 of title 5, United States Code) concerning how a lump-sum payment under paragraph (7) shall be made with respect to any employee who <page identifier="/us/stat/111/1287">111 STAT. 1287</page>dies before an amount payable to such employee under paragraph (7) is made.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Conversion to New Salary Schedule</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num><subparagraph class="inline"><num value="A">(A)</num> <content>Effective on the first day of the first pay period<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> beginning after the date of enactment of this section, the Secretary of the Treasury shall fix the rates of basic pay for members of the United States Secret Service Uniformed Division in accordance with this paragraph.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B)</num> <content>Subject to subparagraph (C), each officer and member receiving basic compensation, immediately prior to the effective date of this section, at one of the scheduled rates in the salary schedule in section 101 of the District of Columbia Police and Firemen’s Salary Act of 1958, as adjusted by law and as in effect prior to the effective date of this section, shall be placed in and receive basic compensation at the corresponding scheduled service step of the salary schedule under subsection (a)(4).</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C)</num><clause class="inline"><num value="i">(i)</num> <content>The Assistant Chief and the Chief of the United States Secret Service Uniformed Division shall be placed in and receive basic compensation in salary class 10 and salary class 11, respectively, in the appropriate service step in the new salary class in accordance with section 304 of the District of Columbia Police and Firemen’s Salary Act of 1958 (District of Columbia Code, section 4–413).</content></clause> <clause class="indent0 fontsize10"><num value="ii">(ii)</num> <content>Each member whose position is to be converted to the salary schedule under section 501(c) of the District of Columbia Police and Firemen’s Salary Act of 1958 (District of Columbia Code, section 4–416(c)) as amended by this section, in accordance with subsection (a) of this section, and who, prior to the effective date of this section has earned, but has not been credited with, an increase in his or her rate of pay shall be afforded that increase before such member is placed in the corresponding service step in the salary schedule under section 501(c).</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Except in the cases of the Assistant Chief and the Chief of the United States Secret Service Uniformed Division, the conversion of positions and individuals to appropriate classes of the salary schedule under section 501(c) of the District of Columbia Police and Firemen’s Salary Act of 1958 (District of Columbia Code, section 4–416(c)) as amended by this section, and the initial adjustments of rates of basic pay of those positions and individuals, in accordance with paragraph (1) of this subsection, shall not be considered to be transfers or promotions within the meaning of section 304 of the District of Columbia Police and Firemen’s Salary Act of 1958 (District of Columbia Code, section 4–413).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Each member whose position is converted to the salary schedule under section 501(c) of the District of Columbia Police and Firemen’s Salary Act of 1958 (District of Columbia Code, section 4–416(c)) as amended by this section, in accordance with subsection (a) of this section, shall be granted credit for purposes of such member’s first service step adjustment under the salary schedule in such section 510(c) for all satisfactory service performed by the member since the member’s last increase in basic pay prior to the adjustment under that section.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Limitation on Pay Period Earnings</inline>.—</heading><chapeau>The Act of August 15, 1950 (64 Stat. 477), (District of Columbia Code, section 4–1104), is amended—<page identifier="/us/stat/111/1288">111 STAT. 1288</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subsection (h), by striking “<quotedText>any officer or member</quotedText>” each place it appears and inserting “<quotedText>an officer or member of the Metropolitan Police force; or of the Fire Department of the District of Columbia; or of the United States Park Police</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by redesignating subsection (h)(3) as subsection (i); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by inserting after paragraph (2) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num><subparagraph class="inline"><num value="A">(A)</num> <chapeau>no premium pay provided by this section shall be paid to, and no compensatory time is authorized for, any officer or member of the United States Secret Service Uniformed Division whose rate of basic pay, combined with any applicable locality-based comparability payment, equals or exceeds the lesser of—</chapeau> <clause class="indent2 fontsize10"><num value="i">“(i)</num> <content>150 percent of the minimum rate payable for grade GS–15 of the General Schedule (including any applicable locality-based comparability payment under section 5304 of title 5, United States Code or any similar provision of law, and any applicable special rate of pay under section 5305 of title 5, United States Code or any similar provision of law); or</content></clause> <clause class="indent2 fontsize10"><num value="ii">“(ii)</num> <content>the rate payable for level V of the Executive Schedule contained in subchapter II of chapter 53 of title 5, United States Code.</content></clause> </subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B)</num> <chapeau>In the case of any officer or member of the United States Secret Service Uniformed Division whose rate of basic pay, combined with any applicable locality-based comparability payment, is less than the lesser of—</chapeau> <clause class="indent2 fontsize10"><num value="i">“(i)</num> <content>150 percent of the minimum rate payable for grade GS–15 of the General Schedule (including any applicable locality-based comparability payment under section 5304 of title 5, United States Code or any similar provision of law, and any applicable special rate of pay under section 5305 of title 5, United States Code or any similar provision of law); or</content></clause> <clause class="indent2 fontsize10"><num value="ii">“(ii)</num> <content>the rate payable for level V of the Executive Schedule contained in subchapter II of chapter 53 of title 5, United States Code, such premium pay may be paid only to the extent that such payment would not cause such officer or member’s aggregate rate of compensation to exceed such lesser amount with respect to any pay period.”.</content></clause> </subparagraph> </paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Savings Provision</inline>.—</heading><content>On the effective date of this section, any existing special salary rates authorized for members of the United States Secret Service Uniformed Division under section 5305 of title 5, United States Code (or any previous similar provision of law) and any special rates of pay or special pay adjustments under section 403, 404, or 405 of the Federal Law Enforcement Pay Reform Act of 1990 applicable to members of the United States Secret Service Uniformed Division shall be rendered inapplicable.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>The Federal Law Enforcement <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s5305">5 USC 5305 note</ref>.</p></sidenote>Pay Reform Act of 1990 (104 Stat. 1466) is amended by striking subsections (b)(1) and (c)(1) of section 405.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The provisions of this section shall become effective on the first day of the first pay period beginning after the date of enactment of this Act.</content> </subsection> </section> <section> <num value="119"><inline class="smallCaps">Sec</inline>. 119.</num> <content class="inline">Section 117 of the Treasury, Postal Service, and General Government Appropriations Act, 1997 (as contained in <page identifier="/us/stat/111/1289">111 STAT. 1289</page>section 101(f) of division A of Public Law 104–208) is hereby<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/110/3009–325">110 Stat. 3009–325</ref>.</p></sidenote> repealed.</content> </section> <section> <num value="120"><inline class="smallCaps">Sec</inline>. 120.</num> <content class="inline">Based on results of industry response to the Request for Proposals, in tax-year 1998, the Internal Revenue Service shall initiate a pilot project which would pay qualified returns preparers, electronic return originators, or transmitters who electronically forward and file tax returns (form 1040 and related information returns) properly formatted and accepted by the Internal Revenue Service, up to $3.00 per return so filed if such payments are determined by the Commissioner of the Internal Revenue Service to be in the best interest of the Government:<proviso> <i>Provided,</i> That the payment may not be made unless the electronic filing service is provided without charge to the taxpayer whose return is so filed:</proviso> <proviso><i>Provided further,</i> That the Internal Revenue Service shall use standard procurement processes to establish this pilot project and through these processes, the Internal Revenue Service shall assure the security of all electronic transmissions and the full protection of the privacy of taxpayer data.</proviso></content> </section> <section> <num value="121"><inline class="smallCaps">Sec</inline>. 121.</num> <content class="inline">Subsection (a) of section 5378 of title 5, United States Code, is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <content>The Secretary of the Department of the Treasury, or his designee, in his sole discretion shall fix the rates of basic pay for positions within the police forces of the United States Mint and the Bureau of Engraving and Printing without regard to the pay provisions of title 5, United States Code, except that no entrylevel police officer shall receive basic pay for a calendar year that is less than the basic rate of pay for General Schedule GS–7 and no executive security official shall receive basic compensation for a calendar year that exceeds the basic rate of pay for General Schedule GS–15.”</content> </subsection> </quotedContent> </content></section> <section> <num value="122"><inline class="smallCaps">Sec</inline>. 122.</num> <subsection class="inline"><num value="a">(a)</num> <content>The Secretary of the Treasury is authorized to<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t31/s9703">31 USC 9703 note</ref>.</p></sidenote> receive all unavailable collections transferred from the Special Forfeiture Fund established by section 26073 of the Anti-Drug Abuse Act of 1988 (21 U.S.C. 1509) by the Director of the Office of Drug Control Policy as a deposit into the Treasury Forfeiture Fund (31 U.S.C. 9703(a)), to become available for obligation on October 1, 1998, as revenue available for purposes identified under 31 U.S.C. 9703(g)(4)(B).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>Paragraph (3)(C) of section 9703(g) of title 31, United States Code, is amended by adding after the last sentence of that paragraph as amended by Public Law 104–208, the following sentence: “Unobligated balances remaining pursuant to section 4(B) of 9703(g) shall also be carried forward.”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <content>Paragraph (4)(B) of section 9703(g) of title 31, United States Code, is amended by striking “<quotedText>, subject to subparagraph (C),</quotedText>” from the first and only sentence of that paragraph.</content> </subsection> </section> <section> <num value="123"><inline class="smallCaps">Sec</inline>. 123.</num> <content class="inline">Notwithstanding any other provision of law, the<sidenote><p class="indent0 firstIndent0 fontsize8">Alaska.</p></sidenote> Secretary of the Treasury shall establish the port of Kodiak, Alaska as a port of entry and United States Customs Service personnel in Anchorage, Alaska shall serve such port of entry. There are authorized to be appropriated such sums as necessary to cover the costs associated with the performance of customs functions using such United States Customs Service personnel.</content> </section> <section> <num value="124"><inline class="smallCaps">Sec</inline>. 124.</num> <content class="inline"><p class="indent0 fontsize10">None of the funds made available by this Act may be used by the Inspector General to contract for advisory and assistance services that has the meaning given such term in section 1105(g) of title 31, United States Code.<page identifier="/us/stat/111/1290">111 STAT. 1290</page></p> <p class="indent0 fontsize10">This title may be cited as the “Treasury Department Appropriations Act, 1998”.</p> </content></section> </level> </level> <num value="II">TITLE II—</num><sidenote><p class="indent0 firstIndent0 fontsize8">Postal Service Appropriations Act, 1998.</p></sidenote><heading>POSTAL SERVICE</heading> <appropriations level="intermediate"> <heading>Payments to the Postal Service Fund</heading> <content><p class="indent0 fontsize10">For payment to the Postal Service Fund for revenue forgone on free and reduced rate mail, pursuant to subsections (c) and (d) of section 2401 of title 39, United States Code, $86,274,000: <proviso><i>Provided,</i> That mail for overseas voting and mail for the blind <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t39/s403">39 USC 403 note</ref>.</p></sidenote>shall continue to be free:</proviso> <proviso><i>Provided further,</i> That 6-day delivery and rural delivery of mail shall continue at not less than the 1983 level:</proviso> <proviso><i>Provided further,</i> That none of the funds made available to the Postal Service by this Act shall be used to implement any rule, regulation, or policy of charging any officer or employee of any State or local child support enforcement agency, or any individual participating in a State or local program of child support enforcement, a fee for information requested or provided concerning an address of a postal customer:</proviso> <proviso><i>Provided further,</i> That none of the funds provided in this Act shall be used to consolidate or close small rural and other small post offices in the fiscal year ending on September 30, 1998.</proviso></p> <p class="indent0 fontsize10">This title may be cited as the “Postal Service Appropriations Act, 1998”.</p> </content></appropriations> <num value="III">TITLE III—</num><sidenote><p class="indent0 firstIndent0 fontsize8">Executive Office Appropriations Act, 1998.</p></sidenote><heading>EXECUTIVE OFFICE OF THE PRESIDENT AND FUNDS APPROPRIATED TO THE PRESIDENT</heading> <appropriations level="intermediate"> <heading>Compensation of the President and the White House Office</heading> <appropriations level="small"> <heading>compensation of the president</heading> <content>For compensation of the President, including an expense allowance at the rate of $50,000 per annum as authorized by 3 U.S.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t3/s102">3 USC 102 note</ref>.</p></sidenote>C. 102; $250,000: <proviso><i>Provided,</i> That none of the funds made available for official expenses shall be expended for any other purpose and any unused amount shall revert to the Treasury pursuant to section 1552 of title 31, United States Code:</proviso> <proviso><i>Provided further,</i> That none of the funds made available for official expenses shall be considered as taxable to the President.</proviso></content> </appropriations> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses for the White House as authorized by law, including not to exceed $3,850,000 for services as authorized by 5 U.S.C. 3109 and 3 U.S.C. 105; including subsistence expenses as authorized by 3 U.S.C. 105, which shall be expended and accounted for as provided in that section; hire of passenger motor vehicles, newspapers, periodicals, teletype news service, and travel (not to exceed $100,000 to be expended and accounted for as provided by 3 U.S.C. 103); not to exceed $19,000 for official entertainment expenses, to be available for allocation within the Executive Office of the President; $51,199,000: <proviso><i>Provided,</i> That $9,800,000 of the funds appropriated shall be available for reimbursements to the White House Communications Agency.</proviso><page identifier="/us/stat/111/1291">111 STAT. 1291</page></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Executive Residence at the White House</heading> <appropriations level="small"> <heading>operating expenses</heading> <content>For the care, maintenance, repair and alteration, refurnishing, improvement, heating and lighting, including electric power and fixtures, of the Executive Residence at the White House and official entertainment expenses of the President, $8,045,000, to be expended and accounted for as provided by 3 U.S.C. 105, 109, 110, and 112–114.</content> </appropriations> <appropriations level="small"> <heading>reimbursable expenses</heading> <content>For the reimbursable expenses of the Executive Residence at the White House, such sums as may be necessary: <proviso><i>Provided,</i> That all reimbursable operating expenses of the Executive Residence shall be made in accordance with the provisions of this paragraph:</proviso> <proviso><i>Provided further,</i> That, notwithstanding any other provision of law, such amount for reimbursable operating expenses shall be the exclusive authority of the Executive Residence to incur obligations and to receive offsetting collections, for such expenses:</proviso> <proviso><i>Provided further,</i> That the Executive Residence shall require each person sponsoring a reimbursable political event to pay in advance an amount equal to the estimated cost of the event, and all such advance payments shall be credited to this account and remain available until expended:</proviso> <proviso><i>Provided further,</i> That the Executive Residence shall require the national committee of the political party of the President to maintain on deposit $25,000, to be separately accounted for and available for expenses relating to reimbursable political events sponsored by such committee during such fiscal year:</proviso> <proviso><i>Provided further,</i> That the Executive Residence shall ensure that a written<sidenote><p class="indent0 firstIndent0 fontsize8">Notice.</p></sidenote> notice of any amount owed for a reimbursable operating expense under this paragraph is submitted to the person owing such amount within 60 days after such expense is incurred, and that such amount is collected within 30 days after the submission of such notice:</proviso> <proviso><i>Provided further,</i> That the Executive Residence shall charge interest and assess penalties and other charges on any such amount that is not reimbursed within such 30 days, in accordance with the interest and penalty provisions applicable to an outstanding debt on a United States Government claim under section 3717 of title 31, United States Code:</proviso> <proviso><i>Provided further,</i> That each such amount that is reimbursed, and any accompanying interest and charges, shall be deposited in the Treasury as miscellaneous receipts:</proviso> <proviso><i>Provided further,</i> That the Executive Residence shall prepare and<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> submit to the Committees on Appropriations, by not later than 90 days after the end of the fiscal year covered by this Act, a report setting forth the reimbursable operating expenses of the Executive Residence during the preceding fiscal year, including the total amount of such expenses, the amount of such total that consists of reimbursable official and ceremonial events, the amount of such total that consists of reimbursable political events, and the portion of each such amount that has been reimbursed as of the date of the report:</proviso> <proviso><i>Provided further,</i> That the Executive<sidenote><p class="indent0 firstIndent0 fontsize8">Records.</p><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> Residence shall: (1) implement a system for the tracking of expenses related to reimbursable events within the Executive Residence that includes a standard for the classification of any such expense as political or nonpolitical; and (2) prepare and submit to the Committees on Appropriations, by not later than December 1, 1997, a <page identifier="/us/stat/111/1292">111 STAT. 1292</page>report setting forth a detailed description of such system and a schedule for its implementation:</proviso> <proviso><i>Provided further,</i> That no provision of this paragraph may be construed to exempt the Executive Residence from any other applicable requirement of subchapter I or II of chapter 37 of title 31, United States Code.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>White House Repair and Restoration</heading> <content>For the repair, alteration, and improvement of the Executive Residence at the White House, $200,000, to remain available until expended for renovation and relocation of the White House laundry, to be expended and accounted for as provided by 3 U.S.C. 105, 109,110, and 112–114.</content> </appropriations> <appropriations level="intermediate"> <heading>Special Assistance to the President and the Official Residence of the Vice President</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses to enable the Vice President to provide assistance to the President in connection with specially assigned functions, services as authorized by 5 U.S.C. 3109 and 3 U.S.C. 106, including subsistence expenses as authorized by 3 U.S.C. 106, which shall be expended and accounted for as provided in that section; and hire of passenger motor vehicles; $3,378,000.</content> </appropriations> <appropriations level="small"> <heading>operating expenses</heading> <content>For the care, operation, refurnishing, improvement, heating and lighting, including electric power and fixtures, of the official residence of the Vice President, the hire of passenger motor vehicles, and not to exceed $90,000 for official entertainment expenses of the Vice President, to be accounted for solely on his certificate; $334,000: <proviso><i>Provided,</i> That advances or repayments or transfers from this appropriation may be made to any department or agency for expenses of carrying out such activities.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Council of Economic Advisers</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Council in carrying out its functions under the Employment Act of 1946 (15 U.S.C. 1021), $3,542,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Office of Policy Development</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Office of Policy Development, including services as authorized by 5 U.S.C. 3109, and 3 U.S.C. 107; $3,983,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Security Council</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the National Security Council, including services as authorized by 5 U.S.C. 3109, $6,648,000.<page identifier="/us/stat/111/1293">111 STAT. 1293</page></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Office of Administration</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Office of Administration, including services as authorized by 5 U.S.C. 3109 and 3 U.S.C. 107, and hire of passenger motor vehicles $28,883,000, of which $2,000,000 shall remain available until expended for a capital investment plan which provides for the modernization of the information technology infrastructure.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Office of Management and Budget</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Office of Management and Budget, including hire of passenger motor vehicles, services as authorized by 5 U.S.C. 3109, $57,440,000, of which not to exceed $5,000,000 shall be available to carry out the provisions of chapter 35 of title 44, United States Code: <proviso><i>Provided,</i> That, as provided in 31 U.S.C. 1301(a), appropriations shall be applied only to the objects for which appropriations were made except as otherwise provided by law:</proviso> <proviso><i>Provided further,</i> That none of the funds appropriated in this Act for the Office of Management and Budget may be used for the purpose of reviewing any agricultured marketing orders or any activities or regulations under the provisions of the Agricultural Marketing Agreement Act of 1937 (7 U.S.C. 601 et seq.):</proviso> <proviso><i>Provided further,</i> That none of the funds made available for the Office of Management and Budget by this Act may be expended for the altering of the transcript of actual testimony of witnesses, except for testimony of officials of the Office of Management and Budget, before the House and Senate Committees on Appropriations or the House and Senate Committees on Veterans’ Affairs or their subcommittees:</proviso> <proviso><i>Provided further,</i> That this proviso shall not apply to printed hearings released by the House and Senate Committees on Appropriations or the House and Senate Committees on Veterans’ Affairs.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Office of National Drug Control Policy</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(including transfer of funds)</subheading> <content>For necessary expenses of the Office of National Drug Control Policy; for research activities pursuant to title I of Public Law 100–690; not to exceed $8,000 for official reception and representation expenses; and for participation in joint projects or in the provision of services on matters of mutual interest with nonprofit, research, or public organizations or agencies, with or without reimbursement; $35,016,000, of which $17,000,000 shall remain available until expended, consisting of $1,000,000 for policy research and evaluation and $16,000,000 for the Counterdrug Technology Assessment Center for counternarcotics research and development projects: <proviso><i>Provided,</i> That the $16,000,000 for the Counterdrug Technology Assessment Center shall be available for transfer to other Federal departments or agencies:</proviso> <proviso><i>Provided further,</i> That the Office is authorized to accept, hold, administer, and utilize gifts, both real and personal, for the purpose of aiding or facilitating the <page identifier="/us/stat/111/1294">111 STAT. 1294</page>work of the Office:</proviso> <proviso><i>Provided further,</i> That not before December 31, 1997, the Director of the Office of National Drug Control Policy shall transfer all balances in the Special Forfeiture Fund established by section 6073 of the Anti-Drug Abuse Act of 1988 (21 U.S.C. 1509) to the Treasury Forfeiture Fund (31 U.S.C. 9703(a)).</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Federal Drug Control Programs</heading> <appropriations level="small"> <heading>high intensity drug trafficking areas program</heading> <subheading>(including transfer of funds)</subheading> <content>For necessary expenses of the Office of National Drug Control Policy’s High Intensity Drug Trafficking Areas Program, $159,007,000 for drug control activities consistent with the approved strategy for each of the designated High Intensity Drug Trafficking Areas, of which $3,000,000 shall be used for a newly designated High Intensity Drug Trafficking Area in Milwaukee, Wisconsin should the Director of the Office of National Drug Control Policy determine the location meets the designated criteria; of which $7,300,000 shall be used for national efforts related to methamphetamine reduction; of which $1,500,000 shall be used for methamphetamine reduction efforts within the Rocky Mountain High Intensity Drug Trafficking Area; of which $6,000,000 shall be used for a newly designated High Intensity Drug Trafficking Area in the three-State area of Kentucky, Tennessee, and West Virginia; of which $1,000,000 shall be used for a newly designated High Intensity Drug Trafficking Area in central Florida; of which no less than $80,000,000 shall be transferred to State and local entities for drug control activities, which shall be obligated within 120 days of the date of enactment of this Act and up to $79,007,000 may be transferred to Federal agencies and departments at a rate to be determined by the Director: <proviso><i>Provided,</i> That funding shall be provided for existing High Intensity Drug Trafficking Areas at no less than the fiscal year 1997 level.</proviso></content> </appropriations> <appropriations level="small"> <heading>special forfeiture fund</heading> <subheading>(including transfer of funds)</subheading> <content><p class="indent0 fontsize10">For activities to support a national anti-drug campaign for youth, and other purposes, authorized by Public Law 100–690, as amended, $211,000,000, to remain available until expended: <proviso><i>Provided,</i> That such funds may be transferred to other Federal departments and agencies to carry out such activities:</proviso> <proviso><i>Provided further,</i> That of the funds provided, $195,000,000 shall be to support a national media campaign to reduce and prevent drug use among young Americans:</proviso> <proviso><i>Provided further,</i> That none of the funds provided for the support of a national media campaign may be obligated until the Director, Office of National Drug Control Policy, submits a strategy for approval to the Committees on Appropriations and the Senate Judiciary Committee that includes: (1) guidelines to ensure and certify that funds will supplement and not supplant current anti-drug community based coalitions; (2) guidelines to ensure and certify that funds will supplement and not supplant current pro bono public service time donated by national and local broadcasting networks; (3) guidelines to ensure and certify that none of the funds will be used for partisan political purposes; (4) guidelines to ensure and certify that no media campaigns to <page identifier="/us/stat/111/1295">111 STAT. 1295</page>be funded pursuant to this campaign shall feature any elected officials, persons seeking elected office, cabinet-level officials, or other Federal officials employed pursuant to Schedule C of title 5, Code of Federal Regulations, section 213, absent advance notice to the Committees on Appropriations and the Senate Judiciary Committee; (5) a detailed implementation plan to be submitted to the Committees on Appropriations and the Senate Judiciary Committee for securing private sector contributions including but not limited to in-kind contributions; (6) a detailed implementation plan to be submitted to the Committees on Appropriations and the Senate Judiciary Committee of the qualifications necessary for any organization, entity, or individual to receive funding for or otherwise be provided broadcast media time; and (7) a system to measure outcomes of success of the national media campaign:</proviso> <proviso><i>Provided further,</i> That the Director shall report to Congress quarterly<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> on the obligation of funds as well as the specific parameters of the national media campaign and report to Congress within two years on the effectiveness of the national media campaign based upon the measurable outcomes provided to Congress previously:</proviso> <proviso><i>Provided further,</i> That of the funds provided for the support of a national media campaign, $17,000,000 shall not be obligated prior to September 30, 1998:</proviso> <proviso><i>Provided further,</i> That of the funds provided, $6,000,000 shall be used to continue the drug use reduction program for those involved in the criminal justice system:</proviso> <proviso><i>Provided further,</i> That of the funds provided, $10,000,000 shall be to initiate a program of matching grants to drug-free communities, as authorized in the Drug-Free Communities Act of 1997.</proviso></p> <p class="indent0 fontsize10">This title may be cited as the “Executive Office Appropriations Act, 1998”.</p> </content></appropriations> </appropriations> <num value="IV">TITLE IV—</num><heading>INDEPENDENT AGENCIES</heading><sidenote><p class="indent0 firstIndent0 fontsize8">Independent Agencies Appropriations Act, 1998.</p></sidenote> <appropriations level="intermediate"> <heading>Committee for Purchase From People Who Are Blind or Severely Disabled</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Committee for Purchase From People Who Are Blind or Severely Disabled established by the Act of June 23, 1971, Public Law 92–28, $1,940,000. </content></appropriations> </appropriations> <appropriations level="intermediate"> <heading>Federal Election Commission</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(including transfer of funds)</subheading> <content>For necessary expenses to carry out the provisions of the Federal Election Campaign Act of 1971, as amended, $31,650,000, of which no less than $3,800,000 shall be available for internal automated data processing systems, and of which not to exceed $5,000 shall be available for reception and representation expenses: <proviso><i>Provided,</i> That of the amounts appropriated for salaries and expenses, $750,000 shall be transferred to the General Accounting Office for the sole purpose of entering into a contract with the private sector for a management review, and technology and performance audit, of the Federal Election Commission, and $300,000 may be transferred to the Government Printing Office.</proviso><page identifier="/us/stat/111/1296">111 STAT. 1296</page></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Federal Labor Relations Authority</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses to carry out functions of the Federal Labor Relations Authority, pursuant to Reorganization Plan Numbered 2 of 1978, and the Civil Service Reform Act of 1978, including services as authorized by 5 U.S.C. 3109, including hire of experts and consultants, hire of passenger motor vehicles, rental of conference rooms in the District of Columbia and elsewhere; $22,039,000: <proviso><i>Provided,</i> That public members of the Federal Service Impasses Panel may be paid travel expenses and per diem in lieu of subsistence as authorized by law (5 U.S.C. 5703) for persons employed intermittently in the Government service, and compensation as authorized by 5 U.S.C. 3109:</proviso> <proviso><i>Provided further,</i> That notwithstanding 31 U.S.C. 3302, funds received from fees charged to non-Federal participants at labor-management relations conferences shall be credited to and merged with this account, to be available without further appropriation for the costs of carrying out these conferences.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>General Services Administration</heading> <appropriations level="small"> <heading>federal buildings fund</heading> <subheading>limitations on availability of revenue</subheading> <content>To carry out the purpose of the Fund established pursuant to section 210(f) of the Federal Property and Administrative Services Act of 1949, as amended (40 U.S.C. 490(f)), the revenues and collections deposited into the Fund shall be available for necessary expenses of real property management and related activities not otherwise provided for, including operation, maintenance, and protection of federally owned and leased buildings; rental of buildings in the District of Columbia; restoration of leased premises; moving governmental agencies (including space adjustments and telecommunications relocation expenses) in connection with the assignment, allocation and transfer of space; contractual services incident to cleaning or servicing buildings, and moving; repair and alteration of federally owned buildings including grounds, approaches and appurtenances; care and safeguarding of sites; maintenance, preservation, demolition, and equipment; acquisition of buildings and sites by purchase, condemnation, or as otherwise authorized by law; acquisition of options to purchase buildings and sites; conversion and extension of federally owned buildings; preliminary planning and design of projects by contract or otherwise; construction of new buildings (including equipment for such buildings); and payment of principal, interest, and any other obligations for public buildings acquired by installment purchase and purchase contract, in the aggregate amount of $4,835,934,000, of which: (1) $300,000,000 shall remain available until expended, for repairs and alterations which includes associated design and construction services: <proviso><i>Provided,</i> That additional projects for which prospectuses have been fully approved may be funded under this category only if advance approval is obtained from the Committees on Appropriations of the House and Senate:</proviso> <proviso><i>Provided further,</i> That the amounts provided in this or any prior Act for “Repairs and <page identifier="/us/stat/111/1297">111 STAT. 1297</page>Alterations” may be used to fund costs associated with implementing security improvements to buildings necessary to meet the minimum standards for security in accordance with current law and in compliance with the reprogramming guidelines of the appropriate Committees of the House and Senate:</proviso> <proviso><i>Provided further,</i> That funds made available in this Act or any previous Act for “Repairs and Alterations” shall, for prospectus projects, be limited to the amount originally made available, except each project may be increased by an amount not to exceed 10 percent when advance approval is obtained from the Committees on Appropriations of the House and Senate of a greater amount:</proviso> <proviso><i>Provided further,</i> That the difference between the funds appropriated and expended on any projects in this or any prior Act, under the heading “Repairs and Alterations”, may be transferred to Basic Repairs and Alterations or used to fund authorized increases in prospectus projects:</proviso> <proviso><i>Provided further,</i> That all funds for repairs and alterations prospectus<sidenote><p class="indent0 firstIndent0 fontsize8">Expiration date.</p></sidenote> projects shall expire on September 30, 2000 and remain in the Federal Building Fund except funds for projects as to which funds for design or other funds have been obligated in whole or in part prior to such date:</proviso> <proviso><i>Provided further,</i> That the amount provided in this or any prior Act for Basic Repairs and Alterations may be used to pay claims against the Government arising from any projects under the heading “Repairs and Alterations” or used to fund authorized increases in prospectus projects; (2) $142,542,000 for installment acquisition payments including payments on purchase contracts which shall remain available until expended; (3) $2,275,340,000 for rental of space which shall remain available until expended; (4) $1,331,789,000 for building operations which shall remain available until expended; and (5) $680,543,000 which shall remain available until expended for projects and activities previously requested and approved under this heading in prior fiscal years:</proviso> <proviso><i>Provided further,</i> That for the purposes of this<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t40/s490i">40 USC 490i</ref>.</p></sidenote> authorization, and hereafter, buildings constructed pursuant to the purchase contract authority of the Public Buildings Amendments of 1972 (40 U.S.C. 602a), buildings occupied pursuant to installment purchase contracts, and buildings under the control of another department or agency where alterations of such buildings are required in connection with the moving of such other department or agency from buildings then, or thereafter to be, under the control of the General Services Administration shall be considered to be federally owned buildings:</proviso> <proviso><i>Provided further,</i> That funds available in the Federal Buildings Fund may be expended for emergency repairs when advance approval is obtained from the Committees on Appropriations of the House and Senate:</proviso> <proviso><i>Provided further,</i> That amounts necessary to provide reimbursable special services to other agencies under section 210(f)(6) of the Federal Property and Administrative Services Act of 1949, as amended (40 U.S.C. 490(f)(6)) and amounts to provide such reimbursable fencing, lighting, guard booths, and other facilities on private or other property not in Government ownership or control as may be appropriate to enable the United States Secret Service to perform its protective functions pursuant to 18 U.S.C. 3056, as amended, shall be available from such revenues and collections:</proviso> <proviso><i>Provided further,</i> That revenues and collections and any other sums accruing to this Fund during fiscal year 1998, excluding reimbursements under section 210(f)(6) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 490(f)(6)) in excess of $4,835,934,000 shall remain in <page identifier="/us/stat/111/1298">111 STAT. 1298</page>the Fund and shall not be available for expenditure except as authorized in appropriations Acts.</proviso></content> </appropriations> <appropriations level="small"> <heading>policy and operations</heading> <content>For expenses authorized by law, not otherwise provided for, for Government-wide policy and oversight activities associated with asset management activities; utilization and donation of surplus personal property; transportation; procurement and supply; Government-wide and internal responsibilities relating to automated data management, telecommunications, information resources management, and related technology activities; utilization survey, deed compliance inspection, appraisal, environmental and cultural analysis, and land use planning functions pertaining to excess and surplus real property; agency-wide policy direction; Board of Contract Appeals; accounting, records management, and other support services incident to adjudication of Indian Tribal Claims by the United States Court of Federal Claims; services as authorized by 5 U.S.C. 3109; and not to exceed $5,000 for official reception and representation expenses; $107,487,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Office of Inspector General</heading> <chapeau>For necessary expenses of the Office of Inspector General and services authorized by 5 U.S.C. 3109, $33,870,000: <proviso><i>Provided,</i> That not to exceed $10,000 shall be available for payment for information and detection of fraud against the Government, including payment for recovery of stolen Government property:</proviso> <proviso><i>Provided further,</i> That not to exceed $2,500 shall be available for awards to employees of other Federal agencies and private citizens in recognition of efforts and initiatives resulting in enhanced Office of Inspector General effectiveness.</proviso></chapeau> <appropriations level="small"> <heading>allowances and office staff for former presidents</heading> <content>For carrying out the provisions of the Act of August 25, 1958, as amended (3 U.S.C. 102 note), and Public Law 95–138, $2,208,000: <proviso><i>Provided,</i> That the Administrator of General Services shall transfer to the Secretary of the Treasury such sums as may be necessary to carry out the provisions of such Acts.</proviso></content> </appropriations> </appropriations> <level> <heading>GENERAL PROVISIONS</heading> <subheading class="smallCaps">General Services Administration</subheading> <section> <num value="401"><inline class="smallCaps">Sec</inline>. 401.</num> <content class="inline">The appropriate appropriation or fund available to the General Services Administration shall be credited with the cost of operation, protection, maintenance, upkeep, repair, and improvement, included as part of rentals received from Government corporations pursuant to law (40 U.S.C. 129).</content> </section> <section> <num value="402"><inline class="smallCaps">Sec</inline>. 402.</num> <content class="inline">Funds available to the General Services Administration shall be available for the hire of passenger motor vehicles.</content> </section> <section> <num value="403"><inline class="smallCaps">Sec</inline>. 403.</num> <content class="inline">Funds in the Federal Buildings Fund made available for fiscal year 1998 for Federal Buildings Fund activities may be transferred between such activities only to the extent necessary to meet program requirements: <proviso><i>Provided,</i> That any proposed transfers shall be approved in advance by the Committees on Appropriations of the House and Senate.</proviso><page identifier="/us/stat/111/1299">111 STAT. 1299</page></content> </section> <section> <num value="404"><inline class="smallCaps">Sec</inline>. 404.</num> <content class="inline">No funds made available by this Act shall be used to transmit a fiscal year 1999 request for United States Courthouse construction that: (1) does not meet the design guide standards for construction as established and approved by the General Services Administration, the Judicial Conference of the United States, and the Office of Management and Budget; and (2) does not reflect the priorities of the Judicial Conference of the United States as set out in its approved 5-year construction plan: <proviso><i>Provided,</i> That the fiscal year 1999 request must be accompanied by a standardized courtroom utilization study of each facility to be constructed, replaced, or expanded.</proviso></content> </section> <section> <num value="405"><inline class="smallCaps">Sec</inline>. 405.</num> <content class="inline">None of the funds provided in this Act may be used to increase the amount of occupiable square feet, provide cleaning services, security enhancements, or any other service usually provided through the Federal Buildings Fund, to any agency which does not pay the rate per square foot assessment for space and services as determined by the General Services Administration in compliance with the Public Buildings Amendments Act of 1972 (Public Law 92–313).</content> </section> <section> <num value="406"><inline class="smallCaps">Sec</inline>. 406.</num> <content class="inline">Section 10 of the General Services Administration General Provisions, Public Law 100–440, is hereby repealed.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/102/1742">102 Stat. 1742</ref>.</p></sidenote></content> </section> <section> <num value="407"><inline class="smallCaps">Sec</inline>. 407.</num> <content class="inline">Funds provided to other Government agencies by the Information Technology Fund, General Services Administration, under 40 U.S.C. 757 and sections 5124(b) and 5128 of Public Law 104–106, Information Technology Management Reform Act of 1996, for performance of pilot information technology projects which have potential for Government-wide benefits and savings, may be repaid to this Fund from any savings actually incurred by these projects or other funding, to the extent feasible.</content> </section> <section> <num value="408"><inline class="smallCaps">Sec</inline>. 408.</num> <content class="inline">The Administrator of General Services is directed to ensure that the materials used for the facade on the United States Courthouse Annex, Savannah, Georgia project are compatible with the existing Savannah Federal Building-United States Courthouse facade, in order to ensure compatibility of this new facility with the Savannah historic district and to ensure that the Annex will not endanger the National Landmark status of the Savannah historic district.</content> </section> <section> <num value="409"><inline class="smallCaps">Sec</inline>. 409.</num> <subsection class="inline"><num value="a">(a)</num> <content>The Act approved August 25, 1958, as amended (Public Law 85–745; 3 U.S.C. 102 note), is amended by striking section 2.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <chapeau>Section 3214 of title 39, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subsection (a) by striking “<quotedText>(a) Subject to subsection (b), a</quotedText>” and inserting “<quotedText>A</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking subsection (b).</content></paragraph> </subsection> </section> <section> <num value="410"><inline class="smallCaps">Sec</inline>. 410.</num> <content class="inline">There is hereby appropriated to the General Services Administration such sums as may be necessary to repay debts to the United States Treasury incurred pursuant to section 6 of the Pennsylvania Avenue Development Corporation Act of 1972, as amended (Public Law 92–578, 86 Stat. 1266, 40 U.S.C. 875), and in addition such amounts as are necessary for payment of interest and premiums, if any, related to such debts.</content> </section> <section> <num value="411"><inline class="smallCaps">Sec</inline>. 411.</num> <content class="inline">From funds made available under the heading “Federal Buildings Fund Limitations on Revenue”, claims against the Government of less than $250,000 arising from direct construction projects and acquisition of buildings may be liquidated from savings effected in other construction projects with prior notification to the Committees on Appropriations of the House and Senate.<page identifier="/us/stat/111/1300">111 STAT. 1300</page></content> </section> <section> <num value="412"><inline class="smallCaps">Sec</inline>. 412.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Notwithstanding any other provision of law, the Administrator of General Services shall sell the property described in subsection (b) through a process of competitive bidding, in accordance with procedures and requirements applicable to such a sale under section 203(e) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 484(e)).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Property Described</inline>.—</heading><content>The property referred to in subsection (a) is the property known as the Bakersfield Federal Building, located at 800 Truxton Avenue in Bakersfield, California, including the land on which the building is situated and all improvements to such building and land.</content> </subsection> </section> <section> <num value="413"><inline class="smallCaps">Sec</inline>. 413.</num> <content class="inline">Section 201(b) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 481) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num><paragraph class="inline"><num value="1">(1)</num> <content>The Administrator shall as far as practicable provide any of the services specified in subsection (a) of this section to any other Federal agency, mixed ownership corporation (as defined in section 9101 of title 31, United States Code), or the District of Columbia, upon its request.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2)</num><subparagraph class="inline"><num value="A">(A)</num> <content>Upon the request of a qualified nonprofit agency for the blind or other severely handicapped that is to provide a commodity or service to the Federal Government under the Javits-Wagner-O’Day Act (41 U.S.C. 46 et seq.), the Administrator may provide any of the services specified in subsection (a) to such agency to the extent practicable.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B)</num> <content>A nonprofit agency receiving services under the authority of subparagraph (A) shall use the services directly in making or providing an approved commodity or approved service to the Federal Government.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">“(C)</num> <chapeau>In this paragraph—</chapeau> <clause class="indent2 fontsize10"><num value="i">“(i)</num> <chapeau>The term ‘qualified nonprofit agency for the blind or other severely handicapped’ means—</chapeau> <subclause class="indent3 fontsize10"><num value="I">“(I)</num> <content>a qualified nonprofit agency for the blind, as defined in section 5(3) of the Javits-Wagner-O’Day Act (41 U.S.C. 48b(3)); and</content></subclause> <subclause class="indent3 fontsize10"><num value="II">“(II)</num> <content>a qualified nonprofit agency for other severely handicapped, as defined in section 5(4) of such Act (41 U.S.C. 48h(4)).</content></subclause> </clause> <clause class="indent2 fontsize10"><num value="ii">“(ii)</num> <content>The term ‘approved commodity’ and ‘approved service’ means a commodity and a service, respectively, that has been determined by the Committee for Purchase from the Blind and Other Severely Handicapped under section 2 of the Javits-Wagner-O’Day Act (41 U.S.C. 47) to be suitable for procurement by the Federal Government.”.</content></clause> </subparagraph> </paragraph> </subsection> </quotedContent> </content></section> </level> <appropriations level="intermediate"> <heading>Federal Payment to Morris K. Udall Scholarship and Excellence in National Environmental Policy Foundation</heading> <content>For payment to the Morris K. Udall Scholarship and Excellence in National Environmental Trust Fund, to be available for purposes of Public Law 102–259, $1,750,000, to remain available until expended.</content> </appropriations> <appropriations level="intermediate"> <heading>John F. Kennedy Assassination Records Review Board</heading> <content>For the necessary expenses to carry out the John F. Kennedy Assassination Records Collection Act of 1992, $1,600,000: <proviso><i>Provided,</i> That $100,000 shall be available only for the purposes of the prompt <page identifier="/us/stat/111/1301">111 STAT. 1301</page>and orderly termination of the John F. Kennedy <sidenote><p class="indent0 firstIndent0 fontsize8">Termination date.</p></sidenote>Assassination Records Review Board, to be concluded no later than September 30, 1998.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Merit Systems Protection Board</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(including transfer of funds)</subheading> <content>For necessary expenses to carry out functions of the Merit Systems Protection Board pursuant to Reorganization Plan Numbered 2 of 1978 and the Civil Service Reform Act of 1978, including services as authorized by 5 U.S.C. 3109, rental of conference rooms in the District of Columbia and elsewhere, hire of passenger motor vehicles, and direct procurement of survey printing, $25,290,000, together with not to exceed $2,430,000 for administrative expenses to adjudicate retirement appeals to be transferred from the Civil Service Retirement and Disability Fund in amounts determined by the Merit Systems Protection Board.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Archives and Records Administration</heading> <appropriations level="small"> <heading>operating expenses</heading> <content>For necessary expenses in connection with the administration of the National Archives (including the Information Security Oversight Office) and records and related activities, as provided by law, and for expenses necessary for the review and declassification of documents, and for the hire of passenger motor vehicles, $205,166,500: <proviso><i>Provided,</i> That the Archivist of the United States is authorized to use any excess funds available from the amount borrowed for construction of the National Archives facility, for expenses necessary to provide adequate storage for holdings.</proviso></content> </appropriations> <appropriations level="small"> <heading>archives facilities and presidential libraries repairs and restoration</heading> <content>For the repair, alteration, and improvement of archives facilities and presidential libraries, and to provide adequate storage for holdings, $14,650,000, to remain available until expended.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Historical Publications and Records Commission</heading> <appropriations level="small"> <heading>grants program</heading> <content>For necessary expenses for allocations and grants for historical publications and records as authorized by 44 U.S.C. 2504, as amended, $5,500,000, to remain available until expended.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Office of Government Ethics</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses to carry out functions of the Office of Government Ethics pursuant to the Ethics in Government Act of 1978, as amended by Public Law 100–598, and the Ethics Reform Act of 1989, Public Law 101–194, including services as authorized by 5 U.S.C. 3109, rental of conference rooms in the District of Columbia and elsewhere, hire of passenger motor vehicles, and <page identifier="/us/stat/111/1302">111 STAT. 1302</page>not to exceed $1,500 for official reception and representation expenses; $8,265,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Office of Personnel Management</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(including transfer of trust funds)</subheading> <content>For necessary expenses to carry out functions of the Office of Personnel Management pursuant to Reorganization Plan Numbered 2 of 1978 and the Civil Service Reform Act of 1978, including services as authorized by 5 U.S.C. 3109; medical examinations performed for veterans by private physicians on a fee basis; rental of conference rooms in the District of Columbia and elsewhere; hire of passenger motor vehicles; not to exceed $2,500 for official reception and representation expenses; advances for reimbursements to applicable funds of the Office of Personnel Management and the Federal Bureau of Investigation for expenses incurred under Executive Order No. 10422 of January 9, 1953, as amended; and payment of per diem and/or subsistence allowances to employees where Voting Rights Act activities require an employee to remain overnight at his or her post of duty; $85,350,000; and in addition $91,236,000 for administrative expenses, to be transferred from the appropriate trust funds of the Office of Personnel Management without regard to other statutes, including direct procurement of printed materials, for the retirement and insurance programs: <proviso><i>Provided,</i> That the provisions of this appropriation shall not affect the authority to use applicable trust funds as provided by section 8348(a)(1)(B) of title 5, United States Code:</proviso> <proviso><i>Provided further,</i> That, except as may be consistent with 5 U.S.C. 8902a(f)(l) and (i), no payment may be made from the Employees Health Benefits Fund to any physician, hospital, or other provider of health care services or supplies who is, at the time such services or supplies are provided to an individual covered under chapter 89 of title 5, United States Code, excluded, pursuant to section 1128 or 1128A of the Social Security Act (42 U.S.C. 1320a–7 through 1320a–7a), from participation in any program under title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.):</proviso> <proviso><i>Provided further,</i> That no part of this appropriation shall be available for salaries and expenses of the Legal Examining Unit of the Office of Personnel Management established pursuant to Executive Order No. 9358 of July 1, 1943, or any successor unit of like purpose:</proviso> <proviso><i>Provided further,</i> That the President’s Commission on White House Fellows, established by Executive Order No. 11183 of October 3, 1964, may, during the fiscal year ending September 30, 1998, accept donations of money, property, and personal services in connection with the development of a publicity brochure to provide information about the White House Fellows, except that no such donations shall be accepted for travel or reimbursement of travel expenses, or for the salaries of employees of such Commission.</proviso><page identifier="/us/stat/111/1303">111 STAT. 1303</page></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Office of Inspector General</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(including transfer of trust funds)</subheading> <content>For necessary expenses of the Office of Inspector General in carrying out the provisions of the Inspector General Act, as amended, including services as authorized by 5 U.S.C. 3109, hire of passenger motor vehicles, $960,000; and in addition, not to exceed $8,645,000 for administrative expenses to audit the Office of Personnel Management’s retirement and insurance programs, to be transferred from the appropriate trust funds of the Office of Personnel Management, as determined by the Inspector General: <proviso><i>Provided,</i> That the Inspector General is authorized to rent conference rooms in the District of Columbia and elsewhere.</proviso></content> </appropriations> <appropriations level="small"> <heading>government payment for annuitants, employees health benefits</heading> <content>For payment of Government contributions with respect to retired employees, as authorized by chapter 89 of title 5, United States Code, and the Retired Federal Employees Health Benefits Act (74 Stat. 849), as amended, such sums as may be necessary.</content> </appropriations> <appropriations level="small"> <heading>government payment for annuitants, employee life insurance</heading> <content>For payment of Government contributions with respect to employees retiring after December 31, 1989, as required by chapter 87 of title 5, United States Code, such sums as may be necessary.</content> </appropriations> <appropriations level="small"> <heading>payment to civil service retirement and disability fund</heading> <content>For financing the unfunded liability of new and increased annuity benefits becoming effective on or after October 20, 1969, as authorized by 5 U.S.C. 8348, and annuities under special Acts to be credited to the Civil Service Retirement and Disability Fund, such sums as may be necessary: <proviso><i>Provided,</i> That annuities authorized<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t33/s776">33 USC 776</ref>.</p></sidenote> by the Act of May 29, 1944, as amended, and the Act of August 19, 1950, as amended (33 U.S.C. 771–775), may hereafter be paid out of the Civil Service Retirement and Disability Fund.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Office of Special Counsel</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses to carry out functions of the Office of Special Counsel pursuant to Reorganization Plan Numbered 2 of 1978, the Civil Service Reform Act of 1978 (Public Law 95–454), the Whistleblower Protection Act of 1989 (Public Law 101–12), Public Law 103–424, and the Uniformed Services Employment and Reemployment Act of 1994 (Public Law 103353), including services as authorized by 5 U.S.C. 3109, payment of fees and expenses for witnesses, rental of conference rooms in the District of Columbia and elsewhere, and hire of passenger motor vehicles; $8,450,000.<page identifier="/us/stat/111/1304">111 STAT. 1304</page></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>United States Tax Court</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content><p class="indent0 fontsize10">For necessary expenses, including contract reporting and other services as authorized by 5 U.S.C. 3109, $33,921,000: <proviso><i>Provided,</i> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s7443">26 USC 7443 note</ref>.</p></sidenote>That travel expenses of the judges shall be paid upon the written certificate of the judge.</proviso></p> <p class="indent0 fontsize10">This title may be cited as the “Independent Agencies Appropriations Act, 1998”.</p> </content></appropriations> </appropriations> <num value="V">TITLE V—</num><heading>GENERAL PROVISIONS</heading> <level> <heading class="centered"><inline class="smallCaps">This Act</inline></heading> <section> <num value="501"><inline class="smallCaps">Sec</inline>. 501.</num> <content class="inline">No part of any appropriation contained in this Act shall remain available for obligation beyond the current fiscal year unless expressly so provided herein.</content> </section> <section> <num value="502"><inline class="smallCaps">Sec</inline>. 502.</num><sidenote><p class="indent0 firstIndent0 fontsize8">Contracts.</p><p class="indent0 firstIndent0 fontsize8">Public information.</p></sidenote> <content class="inline">The expenditure of any appropriation under this Act for any consulting service through procurement contract, pursuant to 5 U.S.C. 3109, shall be limited to those contracts where such expenditures are a matter of public record and available for public inspection, except where otherwise provided under existing law, or under existing Executive order issued pursuant to existing law.</content> </section> <section> <num value="503"><inline class="smallCaps">Sec</inline>. 503.</num> <content class="inline">None of the funds made available by this Act shall be available for any activity or for paying the salary of any Government employee where funding an activity or paying a salary to a Government employee would result in a decision, determination, rule, regulation, or policy that would prohibit the enforcement of section 307 of the Tariff Act of 1930.</content> </section> <section> <num value="504"><inline class="smallCaps">Sec</inline>. 504.</num> <content class="inline">None of the funds made available by this Act shall be available in fiscal year 1998, for the purpose of transferring control over the Federal Law Enforcement Training Center located at Glynco, Georgia, and Artesia, New Mexico, out of the Department of the Treasury.</content> </section> <section> <num value="505"><inline class="smallCaps">Sec</inline>. 505.</num> <content class="inline">The Office of Personnel Management may, during the fiscal year ending September 30, 1998, and hereafter, accept donations of supplies, services, land, and equipment for the Federal Executive Institute and Management Development Centers to assist in enhancing the quality of Federal management.</content> </section> <section> <num value="506"><inline class="smallCaps">Sec</inline>. 506.</num> <content class="inline">No part of any appropriation contained in this Act shall be available to pay the salary for any person filling a position, other than a temporary position, formerly held by an employee who has left to enter the Armed Forces of the United States and has satisfactorily completed his period of active military or naval service, and has within 90 days after his release from such service or from hospitalization continuing after discharge for a period of not more than 1 year, made application for restoration to his former position and has been certified by the Office of Personnel Management as still qualified to perform the duties of his former position and has not been restored thereto.</content> </section> <section> <num value="507"><inline class="smallCaps">Sec</inline>. 507.</num> <content class="inline">No funds appropriated pursuant to this Act may be expended by an entity unless the entity agrees that in expending the assistance the entity will comply with sections 2 through 4 of the Act of March 3, 1933 (41 U.S.C. 10a–10c, popularly known as the “Buy American Act”).<page identifier="/us/stat/111/1305">111 STAT. 1305</page></content> </section> <section> <num value="508"><inline class="smallCaps">Sec</inline>. 508.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Purchase of American-Made Equipment and Products</inline>.—</heading><content>In the case of any equipment or products that may be authorized to be purchased with financial assistance provided under this Act, it is the sense of the Congress that entities receiving such assistance should, in expending the assistance, purchase only American-made equipment and products.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Notice to Recipients of Assistance</inline>.—</heading><content>In providing financial assistance under this Act, the Secretary of the Treasury shall provide to each recipient of the assistance a notice describing the statement made in subsection (a) by the Congress.</content> </subsection> </section> <section> <num value="509"><inline class="smallCaps">Sec</inline>. 509.</num> <content class="inline">If it has been finally determined by a court or Federal agency that any person intentionally affixed a label bearing a “Made in America” inscription, or any inscription with the same meaning, to any product sold in or snipped to the United States that is not made in the United States, such person shall be ineligible to receive any contract or subcontract made with funds provided pursuant to this Act, pursuant to the debarment, suspension, and ineligibility procedures described in sections 9.400 through 9.409 of title 48, Code of Federal Regulations.</content> </section> <section> <num value="510"><inline class="smallCaps">Sec</inline>. 510.</num> <content class="inline">Except as otherwise specifically provided by law, not to exceed 50 percent of unobligated balances remaining available at the end of fiscal year 1998 from appropriations made available for salaries and expenses for fiscal year 1998 in this Act, shall remain available through September 30, 1999, for each such account for the purposes authorized: <proviso><i>Provided,</i> That a request shall be submitted to the House and Senate Committees on Appropriations for approval prior to the expenditure of such funds:</proviso> <proviso><i>Provided further,</i> That these requests shall be made in compliance with reprogramming guidelines.</proviso></content> </section> <section> <num value="511"><inline class="smallCaps">Sec</inline>. 511.</num> <chapeau class="inline">None of the funds made available in this Act may be used by the Executive Office of the President to request from the Federal Bureau of Investigation any official background investigation report on any individual, except when it is made known to the Federal official having authority to obligate or expend such funds that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>such individual has given his or her express written consent for such request not more than 6 months prior to the date of such request and during the same presidential administration; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>such request is required due to extraordinary circumstances involving national security.</content></paragraph> </section> <section> <num value="512"><inline class="smallCaps">Sec</inline>. 512.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Prohibiting Reappointment of Members of Federal Election Commission</inline>.—</heading><content>Section 306(a)(2)(A) of the Federal Election Campaign Act of 1971 (2 U.S.C. 437c(a)(2)(A)) is amended by striking “<quotedText>for terms of 6 years</quotedText>” and inserting “<quotedText>for a single term of 6 years</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Applicability</inline>.—</heading><content>The amendment made by subsection (a)<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s437c">2 USC 437c note</ref>.</p></sidenote> shall apply with respect to individuals nominated by the President to be members of the Federal Election Commission after December 31, 1997.</content> </subsection> </section> <section> <num value="513"><inline class="smallCaps">Sec</inline>. 513.</num> <content class="inline">No funds appropriated by this Act shall be available to pay for an abortion, or the administrative expenses in connection with any health plan under the Federal employees health benefit program which provides any benefits or coverage for abortions.</content> </section> <section> <num value="514"><inline class="smallCaps">Sec</inline>. 514.</num> <content class="inline">The provision of section 513 shall not apply where the life of the mother would be endangered if the fetus were carried to term, or the pregnancy is the result of an act of rape or incest.<page identifier="/us/stat/111/1306">111 STAT. 1306</page></content> </section> <section> <num value="515"><inline class="smallCaps">Sec</inline>. 515.</num> <content class="inline">Section 1 under the subheading “General Provision” under the heading “Office of Personnel Management” under title IV of the Treasury, Postal Service and General Government Appropriations Act, 1992 (Public Law 102–141; 105 Stat. 861; 5 U.S.C. 5941 note), as amended by section 532 of the Treasury, Postal Service and General Government Appropriations Act, 1995 (Public Law 103–329; 108 Stat. 2413), and by section 5 under the heading “General Provisions—Office of Personnel Management” under title IV of the Treasury, Postal Service, and General Government Appropriations Act, 1996 (Public Law 10452; 109 Stat. 490), is further amended by striking “<quotedText>1998</quotedText>” both places it appears and inserting “<quotedText>2000</quotedText>”.</content> </section> <section> <num value="516"><inline class="smallCaps">Sec</inline>. 516.</num> <subsection class="inline"><num value="a">(a)</num> <chapeau>Title 5, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in section 8334 by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="m">“(m)</num> <content>A Member who has served in a position in the executive branch for which the rate of basic pay was reduced for the duration of the service of the Member to remove the impediment to the appointment of the Member imposed by article I, section 6, clause 2 of the Constitution, or the survivor of such a Member, may deposit to the credit of the Fund an amount equal to the difference between the amount deducted from the basic pay of the Member during that period of service and the amount that would have been deducted if the rate of basic pay which would otherwise have been in effect during that period had been in effect, plus interest computed under subsection (e).”;</content> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in section 8337(a) by striking “<quotedText>or (q)</quotedText>” and inserting “<quotedText>(q), or (r)</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <chapeau>in section 8339—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in subsections (f) and (i) through (m) by striking “<quotedText>and (q) of this section</quotedText>” and “and (q)” each time either appears and inserting “<quotedText>(q), and (r)</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in subsection (g) by striking “<quotedText>or (q) of this section</quotedText>” each time it appears and inserting “<quotedText>(q), or (r)</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="r">“(r)</num> <content>The annuity of a Member who has served in a position in the executive branch for which the rate of basic pay was reduced for the duration of the service of the Member in that position to remove the impediment to the appointment of the Member imposed by article I, section 6, clause 2 of the Constitution, shall, subject to a deposit in the Fund as provided under section 8334(m), be computed as though the rate of basic pay which would otherwise have been in effect during that period of service had been in effect.”;</content> </subsection> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>in section 8341(b)(1) and (d) by striking “<quotedText>and (q) of this title</quotedText>” each place it appears and inserting “<quotedText>(q), and (r)</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s8343a">5 USC 8343a</ref>.</p></sidenote> <content>in section 8334a(c) by striking “<quotedText>and (q) of section 8339 of this title</quotedText>” and inserting “<quotedText>(q), and (r) of section 8339</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>in section 8344(a)(A) by striking “<quotedText>and (q) of this title</quotedText>” and inserting “<quotedText>(q), and (r)</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <content>in section 8415 by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <content>The annuity of a Member who has served in a position in the executive branch for which the rate of basic pay was reduced for the duration of the service of the Member in that position to remove the impediment to the appointment of the Member imposed by article I, section 6, clause 2 of the Constitution, shall, <page identifier="/us/stat/111/1307">111 STAT. 1307</page>subject to a deposit in the Fund as provided under section 8422(g), be computed as though the rate of basic pay which would otherwise have been in effect during that period of service had been in effect.”.</content> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8)</num> <content>in section 8422 by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <content>A Member who has served in a position in the executive branch for which the rate of basic pay was reduced for the duration of the service of the Member to remove the impediment to the appointment of the Member imposed by article I, section 6, clause 2 of the Constitution, or the survivor of such a Member, may deposit to the credit of the Fund an amount equal to the difference between the amount deducted from the basic pay of the Member during that period of service and the amount that would have been deducted if the rate of basic pay which would otherwise have been in effect during that period had been in effect, plus interest computed under section 8334(e).”; and</content> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9)</num> <content>in section 8468 by striking “<quotedText>through (f)</quotedText>” and inserting “<quotedText>through (g)</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>The amendments made by subsection (a) shall be applicable<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s8334a">5 USC 8334a</ref>.</p></sidenote> to any annuity commencing before, on, or after the date of enactment of this Act, and shall be effective with regard to any payment made after the first month following the date of enactment.</content> </subsection> </section> <section> <num value="517"><inline class="smallCaps">Sec</inline>. 517.</num> <subsection class="inline"><num value="a">(a)</num> <chapeau>Section 5948 of title 5, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subsection (d) by striking the second sentence and inserting the following: “No agreement shall be entered into under this section later than September 30, 2000, nor shall any agreement cover a period of service extending beyond September 30, 2002.”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subsection (j)(2)(A) by striking “<quotedText>September 30, 1997</quotedText>” and inserting “<quotedText>September 30, 2000</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>Section 3 of the Federal Physicians Comparability Allowance Act of 1978 (5 U.S.C. 5948 note) is amended by striking “<quotedText>September 30, 1999</quotedText>” and inserting “<quotedText>September 30, 2002</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <content>The amendments made by this section shall take effect<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s5948">5 USC 5948 note</ref>.</p></sidenote> on the date of enactment of this Act.</content> </subsection> </section> <section> <num value="518"><inline class="smallCaps">Sec</inline>. 518.</num> <subsection class="inline"><num value="a">(a)</num><paragraph class="inline"><num value="1">(1)</num> <content>Section 8341 of title 5, United States Code, is amended by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="k">“(k)</num><paragraph class="inline"><num value="1">(1)</num> <content>Subsections (b)(3)(B), (d)(ii), and (h)(3)(B)(i) (to the extent that they provide for termination of a survivor annuity because of a remarriage before age 55) shall not apply if the widow, widower, or former spouse was married for at least 30 years to the individual on whose service the survivor annuity is based.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2)</num> <content>A remarriage described in paragraph (1) shall not be taken into account for purposes of section 8339(j)(5)(B) or (C) or any other provision of this chapter which the Office may by regulation identify in order to carry out the purposes of this subsection.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <chapeau>Such section 8341 is further amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in subsections (b)(3)(B) and (d)(ii) by striking “<quotedText>remarries</quotedText>” and inserting “<quotedText>except as provided in subsection (k), remarries</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in subsection (h)(3)(B)(i) by striking “<quotedText>in</quotedText>” and inserting “<quotedText>except as provided in subsection (k), in</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><paragraph class="inline"><num value="1">(1)</num><subparagraph class="inline"><num value="A">(A)</num> <content>Section 8442(d) of title 5, United States Code, is amended by adding at the end the following:<page identifier="/us/stat/111/1308">111 STAT. 1308</page> <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>Paragraph (1)(B) (relating to termination of a survivor annuity because of a remarriage before age 55) shall not apply if the widow or widower was married for at least 30 years to the individual on whose service the survivor annuity is based.”.</content></paragraph> </quotedContent> </content></subparagraph> <paragraph class="indent0 fontsize10"><num value="B">(B)</num> <content>Subsection (d)(1)(B) of such section 8442 is amended by striking “<quotedText>remarries</quotedText>” and inserting “<quotedText>except as provided in paragraph (3), remarries</quotedText>”.</content></paragraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><subparagraph class="inline"><num value="A">(A)</num> <content>Section 8445 of title 5, United States Code, is amended by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num><paragraph class="inline"><num value="1">(1)</num> <content>Subsection (c)(2) (to the extent that it provides for termination of a survivor annuity because of a remarriage before age 55) shall not apply if the former spouse was married for at least 30 years to the individual on whose service the survivor annuity is based.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2)</num> <content>A remarriage described in paragraph (1) shall not be taken into account for purposes of section 8419(b)(1)(B) or any other provision of this chapter which the Office may by regulation identify m order to carry out the purposes of this subsection.”.</content></paragraph> </subsection> </quotedContent> </content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">(B)</num> <content>Subsection (c)(2) of such section 8445 is amended by striking “<quotedText>shall</quotedText>” and inserting “<quotedText>except as provided in subsection (h), shall</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s8341">5 USC 8341 note</ref>.</p></sidenote> <content>The amendments made by this section shall apply with respect to remarriages occurring on or after January 1, 1995.</content> </subsection> </section> </level> <num value="VI">TITLE VI—</num><heading>GENERAL PROVISIONS</heading> <level> <heading>Departments, Agencies, and Corporations</heading> <section> <num value="601"><inline class="smallCaps">Sec</inline>. 601.</num> <content class="inline">Funds appropriated in this or any other Act may be used to pay travel to the United States for the immediate family of employees serving abroad in cases of death or life threatening illness of said employee.</content> </section> <section> <num value="602"><inline class="smallCaps">Sec</inline>. 602.</num> <content class="inline">No department, agency, or instrumentality of the United States receiving appropriated funds under this or any other Act for fiscal year 1998 shall obligate or expend any such funds, unless such department, agency, or instrumentality has in place, and will continue to administer in good faith, a written policy designed to ensure that all of its workplaces are free from the illegal use, possession, or distribution of controlled substances (as defined in the Controlled Substances Act) by the officers and employees of such department, agency, or instrumentality.</content> </section> <section> <num value="603"><inline class="smallCaps">Sec</inline>. 603.</num> <content class="inline">Notwithstanding 31 U.S.C. 1345, any agency, department, or instrumentality of the United States which provides or proposes to provide child care services for Federal employees may reimburse any Federal employee or any person employed to provide such services for travel, transportation, and subsistence expenses incurred for training classes, conferences, or other meetings in connection with the provision of such services: Provided, That any per diem allowance made pursuant to this section shall not exceed the rate specified in regulations prescribed pursuant to section 5707 of title 5, United States Code.</content> </section> <section> <num value="604"><inline class="smallCaps">Sec</inline>. 604.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t31/s1343">31 USC 1343 note</ref>.</p></sidenote> <content class="inline">Unless otherwise specifically provided, the maximum amount allowable during the current fiscal year in accordance with section 16 of the Act of August 2, 1946 (60 Stat. 810), for the purchase of any passenger motor vehicle (exclusive of buses, ambulances, law enforcement, and undercover surveillance vehicles), is hereby fixed at $8,100 except station wagons for which the maximum shall be $9,100: Provided, That these limits may be exceeded <page identifier="/us/stat/111/1309">111 STAT. 1309</page>by not to exceed $3,700 for police-type vehicles, and by not to exceed $4,000 for special heavy-duty vehicles: Provided further, That the limits set forth in this section may not be exceeded by more than 5 percent for electric or hybrid vehicles purchased for demonstration under the provisions of the Electric and Hybrid Vehicle Research, Development, and Demonstration Act of 1976: Provided further, That the limits set forth in this section may be exceeded by the incremental cost of clean alternative fuels vehicles acquired pursuant to Public Law 101–549 over the cost of comparable conventionally fueled vehicles.</content> </section> <section> <num value="605"><inline class="smallCaps">Sec</inline>. 605.</num> <content class="inline">Appropriations of the executive departments and independent establishments for the current fiscal year available for expenses of travel, or for the expenses of the activity concerned, are hereby made available for quarters allowances and cost-of-living allowances, in accordance with 5 U.S.C. 5922–5924.</content> </section> <section> <num value="606"><inline class="smallCaps">Sec</inline>. 606.</num> <content class="inline">Unless otherwise specified during the current fiscal<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s3101">5 USC 3101 note</ref>.</p></sidenote> year, no part of any appropriation contained in this or any other Act shall be used to pay the compensation of any officer or employee of the Government of the United States (including any agency the majority of the stock of which is owned by the Government of the United States) whose post of duty is in the continental United States unless such person: (1) is a citizen of the United States; (2) is a person in the service of the United States on the date of enactment of this Act who, being eligible for citizenship, has filed a declaration of intention to become a citizen of the United States prior to such date and is actually residing in the United States; (3) is a person who owes allegiance to the United States; (4) is an alien from Cuba, Poland, South Vietnam, the countries of the former Soviet Union, or the Baltic countries lawfully admitted to the United States for permanent residence; (5) is a South Vietnamese, Cambodian, or Laotian refugee paroled in the United States after January 1, 1975; or (6) is a national of the People’s Republic of China who qualifies for adjustment of status pursuant to the Chinese Student Protection Act of 1992: Provided, That for the purpose of this section, an affidavit signed by any such person shall be considered prima facie evidence that the requirements of this section with respect to his or her status have been complied with: Provided further, That any person making a false affidavit shall be guilty of a felony, and, upon conviction, shall be fined no more than $4,000 or imprisoned for not more than 1 year, or both: Provided further, That the above penal clause shall be in addition to, and not in substitution for, any other provisions of existing law: Provided further, That any payment made to any officer or employee contrary to the provisions of this section shall be recoverable in action by the Federal Government. This section shall not apply to citizens of Ireland, Israel, or the Republic of the Philippines, or to nationals of those countries allied with the United States in a current defense effort, or to international broadcasters employed by the United States Information Agency, or to temporary employment of translators, or to temporary employment in the field service (not to exceed 60 days) as a result of emergencies.</content> </section> <section> <num value="607"><inline class="smallCaps">Sec</inline>. 607.</num> <content class="inline">Appropriations available to any department or agency during the current fiscal year for necessary expenses, including maintenance or operating expenses, shall also be available for payment to the General Services Administration for charges for space and services and those expenses of renovation and alteration of <page identifier="/us/stat/111/1310">111 STAT. 1310</page>buildings and facilities which constitute public improvements performed in accordance with the Public Buildings Act of 1959 (73 Stat. 749), the Public Buildings Amendments of 1972 (87 Stat. 216), or other applicable law.</content> </section> <section> <num value="608"><inline class="smallCaps">Sec</inline>. 608.</num> <chapeau>In addition to funds provided in this or any other Act, all Federal agencies are authorized to receive and use funds resulting from the sale of materials, including Federal records disposed of pursuant to a records schedule recovered through recycling or waste prevention programs. Such funds shall be available until expended for the following purposes:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Acquisition, waste reduction and prevention, and recycling programs as described in Executive Order No. 12873 (October 20, 1993), including any such programs adopted prior to the effective date of the Executive order.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Other Federal agency environmental management programs, including, but not limited to, the development and implementation of hazardous waste management and pollution prevention programs.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Other employee programs as authorized by law or as deemed appropriate by the head of the Federal agency.</content></paragraph> </section> <section> <num value="609"><inline class="smallCaps">Sec</inline>. 609.</num> <content class="inline">Funds made available by this or any other Act for administrative expenses in the current fiscal year of the corporations and agencies subject to chapter 91 of title 31, United States Code, shall be available, in addition to objects for which such funds are otherwise available, for rent in the District of Columbia; services in accordance with 5 U.S.C. 3109; and the objects specified under this head, all the provisions of which shall be applicable to the expenditure of such funds unless otherwise specified in the Act by which they are made available: Provided, That in the event any functions budgeted as administrative expenses are subsequently transferred to or paid from other funds, the limitations on administrative expenses shall be correspondingly reduced.</content> </section> <section> <num value="610"><inline class="smallCaps">Sec</inline>. 610.</num> <content class="inline">No part of any appropriation for the current fiscal year contained in this or any other Act shall be paid to any person for the filling of any position for which he or she has been nominated after the Senate has voted not to approve the nomination of said person.</content> </section> <section> <num value="611"><inline class="smallCaps">Sec</inline>. 611.</num> <content class="inline">No part of any appropriation contained in this or any other Act shall be available for interagency financing of boards (except Federal Executive Boards), commissions, councils, committees, or similar groups (whether or not they are interagency entities) which do not have a prior and specific statutory approval to receive financial support from more than one agency or instrumentality.</content> </section> <section> <num value="612"><inline class="smallCaps">Sec</inline>. 612.</num> <content class="inline">Funds made available by this or any other Act to the Postal Service Fund (39 U.S.C. 2003) shall be available for employment of guards for all buildings and areas owned or occupied by the Postal Service and under the charge and control of the Postal Service, and such guards shall have, with respect to such property, the powers of special policemen provided by the first section of the Act of June 1, 1948, as amended (62 Stat. 281; 40 U.S.C. 318), and, as to property owned or occupied by the Postal Service, the Postmaster General may take the same actions as the Administrator of General Services may take under the provisions of sections 2 and 3 of the Act of June 1, 1948, as amended (62 Stat. 281; 40 U.S.C. 318a and 318b), attaching thereto penal consequences under the authority and within the limits provided <page identifier="/us/stat/111/1311">111 STAT. 1311</page>in section 4 of the Act of June 1, 1948, as amended (62 Stat. 281; 40 U.S.C. 318c).</content> </section> <section> <num value="613"><inline class="smallCaps">Sec</inline>. 613.</num> <content class="inline">None of the funds made available pursuant to the provisions of this Act shall be used to implement, administer, or enforce any regulation which has been disapproved pursuant to a resolution of disapproval duly adopted in accordance with the applicable law of the United States.</content> </section> <section> <num value="614"><inline class="smallCaps">Sec</inline>. 614.</num> <subsection class="inline"><num value="a">(a)</num> <chapeau>Notwithstanding any other provision of law, and<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s5343">5 USC 5343 note</ref>.</p></sidenote> except as otherwise provided in this section, no part of any of the funds appropriated for the fiscal year ending on September 30, 1998, by this or any other Act, may be used to pay any prevailing rate employee described in section 5342(a)(2)(A) of title 5, United States Code—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>during the period from the date of expiration of the limitation imposed by section 616 of the Treasury, Postal Service and General Government Appropriations Act, 1997, until the normal effective date of the applicable wage survey adjustment that is to take effect in fiscal year 1998, in an amount that exceeds the rate payable for the applicable grade and step of the applicable wage schedule in accordance with such section 616; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>during the period consisting of the remainder of fiscal year 1998, in an amount that exceeds, as a result of a wage survey adjustment, the rate payable under paragraph (1) by more than the sum of—</chapeau></paragraph> <paragraph class="indent1 fontsize10"><num value="A">(A)</num> <content>the percentage adjustment taking effect in fiscal year 1998 under section 5303 of title 5, United States Code, in the rates of pay under the General Schedule; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="B">(B)</num> <content>the difference between the overall average percentage of the locality-based comparability payments taking effect in fiscal year 1998 under section 5304 of such title (whether by adjustment or otherwise), and the overall average percentage of such payments which was effective in fiscal year 1997 under such section.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>Notwithstanding any other provision of law, no prevailing rate employee described in subparagraph (B) or (C) of section 5342(a)(2) of title 5, United States Code, and no employee covered by section 5348 of such title, may be paid during the periods for which subsection (a) is in effect at a rate that exceeds the rates that would be payable under subsection (a) were subsection (a) applicable to such employee.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <content>For the purposes of this section, the rates payable to an<sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote> employee who is covered by this section and who is paid from a schedule not in existence on September 30, 1997, shall be determined under regulations prescribed by the Office of Personnel Management.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <content>Notwithstanding any other provision of law, rates of premium pay for employees subject to this section may not be changed from the rates in effect on September 30, 1997, except to the extent determined by the Office of Personnel Management to be consistent with the purpose of this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <content>This section shall apply with respect to pay for service<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> performed after September 30, 1997.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <content>For the purpose of administering any provision of law (including section 8431 of title 5, United States Code, and any <page identifier="/us/stat/111/1312">111 STAT. 1312</page>rule or regulation that provides premium pay, retirement, life insurance, or any other employee benefit) that requires any deduction or contribution, or that imposes any requirement or limitation on the basis of a rate of salary or basic pay, the rate of salary or basic pay payable after the application of this section shall be treated as the rate of salary or basic pay.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g)</num> <content>Nothing in this section shall be considered to permit or require the payment to any employee covered by this section at a rate in excess of the rate that would be payable were this section not in effect.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h)</num> <content>The Office of Personnel Management may provide for exceptions to the limitations imposed by this section if the Office determines that such exceptions are necessary to ensure the recruitment or retention of qualified employees.</content> </subsection> </section> <section> <num value="615"><inline class="smallCaps">Sec</inline>. 615.</num> <content class="inline">During the period in which the head of any department or agency, or any other officer or civilian employee of the Government appointed by the President of the United States, holds office, no funds may be obligated or expended in excess of $5,000 to furnish or redecorate the office of such department head, agency head, officer, or employee, or to purchase furniture or make improvements for any such office, unless advance notice of such furnishing or redecoration is expressly approved by the Committees on Appropriations of the House and Senate. For the purposes of this section, the word “office” shall include the entire suite of offices assigned to the individual, as well as any other space used primarily by the individual or the use of which is directly controlled by the individual.</content> </section> <section> <num value="616"><inline class="smallCaps">Sec</inline>. 616.</num> <content class="inline">Notwithstanding any other provision of law, no executive branch agency shall purchase, construct, and/or lease any additional facilities, except within or contiguous to existing locations, to be used for the purpose of conducting Federal law enforcement training without the advance approval of the House and Senate Committees on Appropriations.</content> </section> <section> <num value="617"><inline class="smallCaps">Sec</inline>. 617.</num> <content class="inline">Notwithstanding section 1346 of title 31, United States Code, or section 611 of this Act, funds made available for fiscal year 1998 by this or any other Act shall be available for the interagency funding of national security and emergency preparedness telecommunications initiatives which benefit multiple Federal departments, agencies, or entities, as provided by Executive Order No. 12472 (April 3, 1984).</content> </section> <section> <num value="618"><inline class="smallCaps">Sec</inline>. 618.</num> <subsection class="inline"><num value="a">(a)</num> <content>None of the funds appropriated by this or any other Act may be obligated or expended by any Federal department, agency, or other instrumentality for the salaries or expenses of any employee appointed to a position of a confidential or policydetermining character excepted from the competitive service pursuant to section 3302 of title 5, United States Code, without a certification to the Office of Personnel Management from the head of the Federal department, agency, or other instrumentality employing the Schedule C appointee that the Schedule C position was not created solely or primarily in order to detail the employee to the White House.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <chapeau>The provisions of this section shall not apply to Federal employees or members of the armed services detailed to or from—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>the Central Intelligence Agency;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>the National Security Agency;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>the Defense Intelligence Agency;<page identifier="/us/stat/111/1313">111 STAT. 1313</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>the offices within the Department of Defense for the collection of specialized national foreign intelligence through reconnaissance programs;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>the Bureau of Intelligence and Research of the Department of State;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>any agency, office, or unit of the Army, Navy, Air Force, and Marine Corps, the Federal Bureau of Investigation and the Drug Enforcement Administration of the Department of Justice, the Department of Transportation, the Department of the Treasury, and the Department of Energy performing intelligence functions; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <content>the Director of Central Intelligence.</content></paragraph> </subsection> </section> <section> <num value="619"><inline class="smallCaps">Sec</inline>. 619.</num> <content class="inline">No department, agency, or instrumentality of the United States receiving appropriated funds under this or any other Act for fiscal year 1998 shall obligate or expend any such funds, unless such department, agency, or instrumentality has in place, and will continue to administer in good faith, a written policy designed to ensure that all of its workplaces are free from discrimination and sexual harassment and that all of its workplaces are not in violation of title VII of the Civil Rights Act of 1964, as amended, the Age Discrimination in Employment Act of 1967, and the Rehabilitation Act of 1973.</content> </section> <section> <num value="620"><inline class="smallCaps">Sec</inline>. 620.</num> <content class="inline">No part of any appropriation contained in this Act may be used to pay for the expenses of travel of employees, including employees of the Executive Office of the President, not directly responsible for the discharge of official governmental tasks and duties: Provided, That this restriction shall not apply to the family of the President, Members of Congress or their spouses, Heads of State of a foreign country or their designees, persons providing assistance to the President for official purposes, or other individuals so designated by the President.</content> </section> <section> <num value="621"><inline class="smallCaps">Sec</inline>. 621.</num> <content class="inline">Notwithstanding any provision of law, the President,<sidenote><p class="indent0 firstIndent0 fontsize8">President.</p><p class="indent0 firstIndent0 fontsize8">Certification.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s7301">5 USC 7301 note</ref>.</p></sidenote> or his designee, must certify to Congress, annually, that no person or persons with direct or indirect responsibility for administering the Executive Office of the President’s Drug-Free Workplace Plan are themselves subject to a program of individual random drug testing.</content> </section> <section> <num value="622"><inline class="smallCaps">Sec</inline>. 622.</num> <subsection class="inline"><num value="a">(a)</num> <chapeau>None of the funds made available in this or any other Act may be obligated or expended for any employee training that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>does not meet identified needs for knowledge, skills, and abilities bearing directly upon the performance of official duties;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>contains elements likely to induce high levels of emotional response or psychological stress in some participants;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>does not require prior employee notification of the content and methods to be used in the training and written end of course evaluation;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>contains any methods or content associated with religious or quasi-religious belief systems or “new age” belief systems as defined in Equal Employment Opportunity Commission Notice N–915.022, dated September 2, 1988;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>is offensive to, or designed to change, participants’ personal values or lifestyle outside the workplace; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>includes content related to human immunodeficiency virus-acquired immune deficiency syndrome (HIV/AIDS) other than that necessary to make employees more aware of the <page identifier="/us/stat/111/1314">111 STAT. 1314</page>medical ramifications of HIV/AIDS and the workplace rights of HIV-positive employees.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>Nothing in this section shall prohibit, restrict, or otherwise preclude an agency from conducting training bearing directly upon the performance of official duties.</content> </subsection> </section> <section> <num value="623"><inline class="smallCaps">Sec</inline>. 623.</num> <content class="inline">No funds appropriated in this or any other Act for fiscal year 1998 may be used to implement or enforce the agreements in Standard Forms 312 and 4355 of the Government or any other nondisclosure policy, form, or agreement if such policy, form, or agreement does not contain the following provisions: “These restrictions are consistent with and do not supersede, conflict with, or otherwise alter the employee obligations, rights, or liabilities created by Executive Order No. 12356; section 7211 of title 5, United States Code (governing disclosures to Congress); section 1034 of title 10, United States Code, as amended by the Military Whistleblower Protection Act (governing disclosure to Congress by members of the military); section 2302(b)(8) of title 5, United States Code, as amended by the Whistleblower Protection Act (governing disclosures of illegality, waste, fraud, abuse or public health or safety threats); the Intelligence Identities Protection Act of 1982 (50 U.S.C. 421 et seq.) (governing disclosures that could expose confidential Government agents); and the statutes which protect against disclosure that may compromise the national security, including sections 641, 793, 794, 798, and 952 of title 18, United States Code, and section 4(b) of the Subversive Activities Act of 1950 (50 U.S.C. 783(b)). The definitions, requirements, obligations, rights, sanctions, and liabilities created by said Executive order and listed statutes are incorporated into this agreement and are controlling.”: Provided, That notwithstanding the preceding paragraph, a nondisclosure policy form or agreement that is to be executed by a person connected with the conduct of an intelligence or intelligence-related activity, other than an employee or officer of the United States Government, may contain provisions appropriate to the particular activity for which such document is to be used. Such form or agreement shall, at a minimum, require that the person will not disclose any classified information received in the course of such activity unless specifically authorized to do so by the United States Government. Such nondisclosure forms shall also make it clear that they do not bar disclosures to Congress or to an authorized official of an executive agency or the Department of Justice that are essential to reporting a substantial violation of law.</content> </section> <section> <num value="624"><inline class="smallCaps">Sec</inline>. 624.</num> <content class="inline">No part of any funds appropriated in this or any other Act shall be used by an agency of the executive branch, other than for normal and recognized executive-legislative relationships, for publicity or propaganda purposes, and for the preparation, distribution or use of any kit, pamphlet, booklet, publication, radio, television or film presentation designed to support or defeat legislation pending before the Congress, except in presentation to the Congress itself.</content> </section> <section> <num value="625"><inline class="smallCaps">Sec</inline>. 625.</num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>No later than September 30, 1998, the Director of the Office of Management and Budget shall submit to the Congress a report that provides—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>estimates of the total annual costs and benefits of Federal regulatory programs, including quantitative and non-quantitative measures of regulatory costs and benefits;<page identifier="/us/stat/111/1315">111 STAT. 1315</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>estimates of the costs and benefits (including quantitative and nonquantitative measures) of each rule that is likely to have a gross annual effect on the economy of $100,000,000 or more in increased costs;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>an assessment of the direct and indirect impacts of Federal rules on the private sector, State and local government, and the Federal Government; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>recommendations from the Director and a description of significant public comments to reform or eliminate any Federal regulatory program or program element that is inefficient, ineffective, or is not a sound use of the Nation’s resources, (b) Notice.—The Director shall provide public notice and an opportunity to comment on the report under subsection (a) before the report is issued in final form.</content></paragraph> </section> <section> <num value="626"><inline class="smallCaps">Sec</inline>. 626.</num> <content class="inline">None of the funds appropriated by this Act or any other Act, may be used by an agency to provide a Federal employee’s home address to any labor organization except when it is made known to the Federal official having authority to obligate or expend such funds that the employee has authorized such disclosure or that such disclosure has been ordered by a court of competent jurisdiction.</content> </section> <section> <num value="627"><inline class="smallCaps">Sec</inline>. 627.</num> <content class="inline">The Secretary of the Treasury is authorized to establish<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t18/s846">18 USC 846 note</ref>.</p></sidenote> scientific certification standards for explosives detection canines, and shall provide, on a reimbursable basis, for the certification of explosives detection canines employed by Federal agencies, or other agencies providing explosives detection services at airports in the United States.</content> </section> <section> <num value="628"><inline class="smallCaps">Sec</inline>. 628.</num> <content class="inline">None of the funds made available in this Act or any other Act may be used to provide any non-public information such as mailing or telephone lists to any person or any organization outside of the Federal Government without the approval of the House and Senate Committees on Appropriations.</content> </section> <section> <num value="629"><inline class="smallCaps">Sec</inline>. 629.</num> <content class="inline">Notwithstanding section 611, interagency financing is authorized to carry out the purposes of the National Bioethics Advisory Commission.</content> </section> <section> <num value="630"><inline class="smallCaps">Sec</inline>. 630.</num> <content class="inline">No part of any appropriation contained in this or any other Act shall be used for publicity or propaganda purposes within the United States not heretofore authorized by the Congress.</content> </section> <section> <num value="631"><inline class="smallCaps">Sec</inline>. 631.</num> <content class="inline">None of the funds appropriated in this or any other Act shall be used to acquire information technologies which do not comply with part 39.106 (Year 2000 compliance) of the Federal Acquisition Regulation, unless an agency’s Chief Information Officer determines that noncompliance with part 39.106 is necessary to the function and operation of the requesting agency or the acquisition is required by a signed contract with the agency in effect before the date of enactment of this Act. Any waiver granted by<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> the Chief Information Officer shall be reported to the Office of Management and Budget, and copies shall be provided to Congress.</content> </section> <section> <num value="632"><inline class="smallCaps">Sec</inline>. 632.</num> <content class="inline">For fiscal year 1998, the Secretary of the Treasury is authorized to use funds made available to the FSLIC Resolution Fund under Public Law 103–327, not to exceed $33,700,000, to reimburse the Department of Justice for the reasonable expenses of litigation that are incurred in the defense of claims against the United States arising from FIRREA and its implementation.</content> </section> <section> <num value="633"><inline class="smallCaps">Sec</inline>. 633.</num> <heading>Personal Allowance Parity Among NAFTA Parties.</heading> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>The United States Trade Representative and the Secretary of the Treasury, in consultation with the Secretary <page identifier="/us/stat/111/1316">111 STAT. 1316</page>of Commerce, shall initiate discussions with officials of the Governments of Mexico and Canada to achieve parity in the duty-free personal allowance structure of the United States, Mexico, and Canada.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Report</inline>.—</heading><content>The United States Trade Representative and the Secretary of the Treasury shall report to Congress within 90 days after the date of enactment of this Act on the progress that is being made to correct any disparity between the United States, Mexico, and Canada with respect to duty-free personal allowances.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Recommendations</inline>.—</heading><content>If parity with respect to duty-free personal allowances between the United States, Mexico, and Canada is not achieved within 180 days after the date of enactment of this Act, the United States Trade Representative and the Secretary of the Treasury shall submit recommendations to Congress for appropriate legislation and action.</content> </subsection> </section> <section> <num value="634"><inline class="smallCaps">Sec</inline>. 634.</num> <content class="inline">None of the funds made available in this Act for the United States Customs Service may be used to allow the importation into the United States of any good, ware, article, or merchandise mined, produced, or manufactured by forced or indentured child labor, as determined pursuant to section 307 of the Tariff Act of 1930 (19 U.S.C. 1307).</content> </section> <section> <num value="635"><inline class="smallCaps">Sec</inline>. 635.</num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p><p class="indent0 fontsize10"><ref href="/us/usc/t5/s5707">5 USC 5707 note</ref>.</p></sidenote> <content class="inline">No later than 30 days after the enactment of this Act, the Director of the Office of Management and Budget shall require all Federal departments and agencies to report total obligations for the expenses of employee relocation. All obligations incident to employee relocation authorized under either chapter 57 of title 5, United States Code, or section 901 of the Foreign Service Act of 1980 (22 U.S.C. 4081; Public Law 96–465), shall be included. Such information for the past, current, and budget years shall be included in the agency budget submission to the President. The Director of the Office of Management and Budget shall prepare a table presenting obligations for the expenses of employee relocation for all departments and agencies, and such table shall be transmitted to Congress each year as part of the President’s annual budget.</content> </section> <section> <num value="636"><inline class="smallCaps">Sec</inline>. 636.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s5546">5 USC 5546 note</ref>.</p></sidenote> <content class="inline">Notwithstanding any other provision of law, no part of any appropriation contained in this Act or any other Act for any fiscal year shall be available for paying Sunday premium pay to any employee unless such employee actually performed work during the time corresponding to such premium pay.</content> </section> <section> <num value="637"><inline class="smallCaps">Sec</inline>. 637.</num> <chapeau class="inline">Section 302(g)(1) of the Federal Election Campaign Act of 1971 (2 U.S.C. 432(g)(1)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>and</quotedText>” after “Senator”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting after “<quotedText>candidate,</quotedText>” the following: “and by the Republican and Democratic Senatorial Campaign Committees”.</content></paragraph> </section> <section> <num value="638"><inline class="smallCaps">Sec</inline>. 638.</num> <subsection class="inline"><num value="a">(a)</num> <content>Chapter 31 of title 5, United States Code, is amended by inserting after section 3112 the following: <quotedContent> <section> <num value="3113">“§ 3113.</num> <heading>Restriction on reemployment after conviction of certain crimes</heading> <chapeau>“An employee shall be separated from service and barred from reemployment in the Federal service, if—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the employee is convicted of a violation of section 201(b) of title 18; and<page identifier="/us/stat/111/1317">111 STAT. 1317</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>such violation related to conduct prohibited under section 1010(a) of the Controlled Substances Import and Export Act (21 U.S.C. 960(a)).”.</content></paragraph> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>The table of sections for chapter 31 of title 5, United States Code, is amended by inserting after the item relating to section 3112 the following: <quotedContent> <toc> <referenceItem role="section"><designator>“3113.</designator> <label>Restriction on reemployment after conviction of certain crimes.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <content>This section shall apply during fiscal year 1998 and each<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s3113">5 USC 3113 note</ref>.</p></sidenote> fiscal year thereafter.</content> </subsection> </section> <section> <num value="639"><inline class="smallCaps">Sec</inline>. 639.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Coordination of Counterdrug Intelligence Centers and Activities</inline>.—</heading><paragraph class="inline"><num value="1">(1)</num> <chapeau>Not later than 120 days after the date of enactment of this Act, the Director of the Office of National Drug Control Policy shall submit to the appropriate congressional committees, including the Committees on Appropriations, a plan to improve coordination, and eliminate unnecessary duplication, among the counterdrug intelligence centers and counterdrug activities of the Federal Government, including the centers and activities of the following departments and agencies:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A)</num> <content>The Department of Defense, including the Defense Intelligence Agency.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B)</num> <content>The Department of the Treasury, including the United States Customs Service and the Financial Crimes Enforcement Network (FinCEN).</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C)</num> <content>The Central Intelligence Agency.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="D">(D)</num> <content>The Coast Guard.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="E">(E)</num> <content>The Department of Justice, including the National Drug Intelligence Center (NDIC); the Drug Enforcement Administration, including the El Paso Intelligence Center (EPIC); and the Federal Bureau of Investigation.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <chapeau>The purpose of the plan under paragraph (1) is to maximize the effectiveness of the centers and activities referred to in that paragraph in achieving the objectives of the national drug control strategy. In order to maximize such effectiveness, the plan shall—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A)</num> <content>articulate clear and specific mission statements for each counterdrug intelligence center and activity, including the manner in which responsibility for counterdrug intelligence activities will be allocated among the counterdrug intelligence centers;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B)</num> <content>specify the relationship between such centers;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C)</num> <content>specify the means by which proper oversight of such centers will be assured;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="D">(D)</num> <content>specify the means by which counterdrug intelligence will be forwarded effectively to all levels of officials responsible for United States counterdrug policy; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="E">(E)</num> <chapeau>specify mechanisms to ensure that State and local law enforcement agencies are apprised of counterdrug intelligence acquired by Federal law enforcement agencies in a manner which—</chapeau> <clause class="indent2 fontsize10"><num value="i">(i)</num> <content>facilitates effective counterdrug activities by State and local law enforcement agencies; and</content></clause> <clause class="indent2 fontsize10"><num value="i">(ii)</num> <content>provides such State and local law enforcement agencies with the information relating to the safety of officials involved in their counterdrug activities.</content></clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Appropriate Congressional Committees Defined</inline>.—</heading><chapeau>In this section, the term “appropriate congressional committees” means the following:<page identifier="/us/stat/111/1318">111 STAT. 1318</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>The Committee on Foreign Relations, the Committee on the Judiciary, and the Select Committee on Intelligence of the Senate.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>The Committee on International Relations, the Committee on the Judiciary, and the Permanent Select Committee on Intelligence of the House of Representatives.</content></paragraph> </subsection> </section> <section> <num value="640"><inline class="smallCaps">Sec</inline>. 640.</num> <chapeau class="inline">No part of any appropriation contained in this or any other Act shall be available for the payment of the salary of any officer or employee of the Federal Government, who—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>prohibits or prevents, or attempts or threatens to prohibit or prevent, any other officer or employee of the Federal Government from having any direct oral or written communication or contact with any Member, committee, or subcommittee of the Congress in connection with any matter pertaining to the employment of such other officer or employee or pertaining to the department or agency of such other officer or employee in any way, irrespective of whether such communication or contact is at the initiative of such other officer or employee or in response to the request or inquiry of such Member, committee, or subcommittee; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>removes, suspends from duty without pay, demotes, reduces in rank, seniority, status, pay, or performance of efficiency rating, denies promotion to, relocates, reassigns, transfers, disciplines, or discriminates in regard to any employment right, entitlement, or benefit, or any term or condition of employment of, any other officer or employee of the Federal Government, or attempts or threatens to commit any of the foregoing actions with respect to such other officer or employee, by reason of any communication or contact of such other officer or employee with any Member, committee, or subcommittee of the Congress as described in paragraph (1).</content></paragraph> </section> <section> <num value="641"><inline class="smallCaps">Sec</inline>. 641.</num> <content class="inline">Section 5118(d)(2) of title 31, United States Code, is amended by striking “<quotedText>This paragraph shall</quotedText>” and all that follows through the end of the paragraph.</content> </section> <section> <num value="642"><inline class="smallCaps">Sec</inline>. 642.</num><sidenote><p class="indent0 firstIndent0 fontsize8">Federal Employees’ Retirement System Open Enrollment Act of 1997.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s8331">5 USC 8331 note</ref>.</p></sidenote> <subsection class="inline"><num value="a">(a)</num> <content>This section may be cited as the “Federal Employees’ Retirement System Open Enrollment Act of 1997”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>Any individual who, as of January 1, 1998, is employed by the Federal Government, and on such date is subject to subchapter III of chapter 83 of title 5, United States Code, may elect to become subject to chapter 84 of such title in accordance with regulations promulgated under subsection (c).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote> <chapeau>The Office of Personnel Management shall promulgate regulations to carry out the provisions of this section. Such regulations shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num><subparagraph class="inline"><num value="A">(A)</num> <content>subject to subparagraph (B), provide for an election under subsection (b) to be made not before July 1, 1998, or after December 31, 1998; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B)</num> <chapeau>with respect to a Member of Congress, provide for—</chapeau></subparagraph> <clause class="indent2 fontsize10"><num value="i">(i)</num> <content>an election under subsection (b) to be made not before July 1, 1998, or after October 31, 1998; and</content></clause> <clause class="indent2 fontsize10"><num value="ii">(ii)</num> <content>such an election to take effect not before January 4, 1999;</content></clause> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>provide notice and information to individuals who may make such an election, including information on a comparison of benefits an individual would receive from coverage under chapter 83 or 84 of title 5, United States Code; and<page identifier="/us/stat/111/1319">111 STAT. 1319</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>provide for treatment of such an election similar to the applicable provisions of title III of the Federal Employees’ Retirement System Act of 1986 (Public Law 99–335; 100 Stat. 599 et seq.).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num><paragraph class="inline"><num value="1">(1)</num> <chapeau>Section 210(a)(5)(H)(i) of the Social Security Act (42 U.S.C. 410(a)(5)(H)(i)) is amended—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>or</quotedText>” after “1986” and inserting a comma; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B)</num> <content>by inserting “<quotedText>or the Federal Employees’ Retirement System Open Enrollment Act of 1997</quotedText>” after “(50 U.S.C. 2157),”.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <chapeau>Section 3121(b)(5)(H)(i) of the Internal Revenue Code of 1986 is amended—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>or</quotedText>” after “1986” and inserting a comma; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B)</num> <content>by inserting “<quotedText>or the Federal Employees’ Retirement System Open Enrollment Act of 1997</quotedText>” after “(50 U.S.C. 2157),”. This Act may be cited as the “<shortTitle role="act">Treasury and General Government Appropriations Act, 1998</shortTitle>”.</content></subparagraph> </paragraph> </subsection> </section> </level> Approved October 10, 1997.
LEGISLATIVE HISTORY—H.R. 2378 (S. 1023): HOUSE REPORTS: Nos. 105–240, Pts. 1–3 (Comm. on Appropriations) and 105–284 (Comm. of Conference). SENATE REPORTS: No. 105–49 accompanying S. 1023 (Comm. on Appropriations). CONGRESSIONAL RECORD, Vol. 143 (1997):

Sept. 17, considered and passed House; passed Senate, amended, in lieu of S. 1023.

Sept. 30, House agreed to conference report.

Oct. 1, Senate agreed to conference report.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):

Oct. 10, Presidential statement.

Oct. 16, President’s special message on line item veto.

 FEDERAL REGISTER, Vol. 62 (1997):

Oct. 17, Cancellation of item pursuant to the Line Item Veto Act.

 Public Law 105–62: Making appropriations for energy and water development for the fiscal year ending September 30, 1998, and for other purposes. Public Law62 Public Law 105–62 111 Stat. 1320 1997-10-13 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1320

*Note: This law contains items that were cancelled by the President pursuant to the Line Item Veto Act. For more information, see the Federal Register entry under “LEGISLATIVE HISTORY” at the end of this law.

 Public Law105–62 105th Congress
An Act Making appropriations for energy and water development for the fiscal year ending September 30, 1998, and for other purposes.

Oct. 13, 1997

[H.R. 2203]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Energy and Water Development Appropriations Act, 1998.
That the following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 1998, for energy and water development, and for other purposes, namely:
<num value="I">TITLE I</num> <heading>DEPARTMENT OF DEFENSE—CIVIL</heading> <subheading>DEPARTMENT OF THE ARMY</subheading> <appropriations level="intermediate"> <heading>Corps of Engineers—Civil</heading> <chapeau>The following appropriations shall be expended under the direction of the Secretary of the Army and the supervision of the Chief of Engineers for authorized civil functions of the Department of the Army pertaining to rivers and harbors, flood control, beach erosion, and related purposes.</chapeau> <appropriations level="small"> <heading>general investigations</heading> <content><p>For expenses necessary for the collection and study of basic information pertaining to river and harbor, flood control, shore protection, and related projects, restudy of authorized projects, miscellaneous investigations, and, when authorized by laws, surveys and detailed studies and plans and specifications of projects prior to construction, $156,804,000, to remain available until expended, of which funds are provided for the following projects in the amounts specified:</p> <list> <listItem><listContent class="indent1 fontsize10 depth0">Delaware Bay Coastline, Delaware and New Jersey, $456,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Tampa Harbor, Alafia Channel, Florida, $270,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Laulaulei, Hawaii, $200,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Barnegat Inlet to Little Egg Harbor Inlet, New Jersey, $400,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Brigantine Inlet to Great Egg Harbor Inlet, New Jersey, $472,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Great Egg Harbor Inlet to Townsends Inlet, New Jersey, $400,000;<page identifier="/us/stat/111/1321">111 STAT. 1321</page></listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Lower Cape May Meadows—Cape May Point, New Jersey, $154,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Manasquan Inlet to Barnegat Inlet, New Jersey, $400,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Raritan Bay to Sandy Hook Bay (Cliffwood Beach), New Jersey, $300,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Townsends Inlet to Cape May Inlet, New Jersey, $500,000; and</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Monongahela River, Fairmont, West Virginia, $350,000:</listContent></listItem> </list> <p class="indent0 fontsize10"><proviso><i>Provided,</i> That the Secretary of the Army, acting through the Chief of Engineers, is directed to use $600,000 of the funds appropriated in Public Law 102–377 for the Red River Waterway, Shreveport, Louisiana, to Daingerfield, Texas, project for the feasibility phase of the Red River Navigation, Southwest Arkansas, study:</proviso> <proviso><i>Provided further,</i> That the Secretary of the Army, acting through the Chief of Engineers, is directed to use $470,000 of the funds appropriated herein to initiate the feasibility phase for the Metropolitan Louisville, Southwest, Kentucky, study:</proviso> <proviso><i>Provided further,</i> That the Secretary of the Army is directed to use $500,000 of the funds appropriated herein to implement section 211(f)(7) of Public Law 104–303 (110 Stat. 3684) and to reimburse the non-Federal sponsor a portion of the Federal share of project costs for the Hunting Bayou element of the project for flood control, Buffalo Bayou and tributaries, Texas:</proviso> <proviso><i>Provided further,</i> That the Secretary of the Army is directed to use $150,000 of the funds appropriated herein to implement section 211(f)(8) of Public Law 104–303 (110 Stat. 3684) and to reimburse the non-Federal sponsor a portion of the Federal share of project costs for the project for flood control, White Oak Bayou watershed, Texas.</proviso></p> </content></appropriations> <appropriations level="small"> <heading>construction, general</heading> <content><p>For the prosecution of river and harbor, flood control, shore protection, and related projects authorized by laws; and detailed studies, and plans and specifications, of projects (including those for development with participation or under consideration for participation by States, local governments, or private groups) authorized or made eligible for selection by law (but such studies shall not constitute a commitment of the Government to construction), $1,473,373,000, to remain available until expended, of which such sums as are necessary pursuant to Public Law 99–662 shall be derived from the Inland Waterways Trust Fund, for one-half of the costs of construction and rehabilitation of inland waterways projects, including rehabilitation costs for the Lock and Dam 25, Mississippi River, Illinois and Missouri; Lock and Dam 14, Mississippi River, Iowa; Lock and Dam 24, Mississippi River, Illinois and Missouri; and Lock and Dam 3, Mississippi River, Minnesota, projects, and of which funds are provided for the following projects in the amounts specified:</p> <list> <listItem><listContent class="indent1 fontsize10 depth0">Arkansas River, Tucker Creek, Arkansas, $300,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Norco Bluffs, California, $1,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">San Timoteo Creek (Santa Ana River Mainstem), California, $5,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Panama City Beaches, Florida, $5,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Tybee Island, Georgia, $2,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Indianapolis Central Waterfront, Indiana, $5,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Indiana Shoreline Erosion, Indiana, $3,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Lake George, Hobart, Indiana, $3,500,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Ohio River Flood Protection, Indiana, $1,300,000;<page identifier="/us/stat/111/1322">111 STAT. 1322</page></listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Harlan, Williamsburg, and Middlesboro, Kentucky, elements of the Levisa and Tug Forks of the Big Sandy River and Upper Cumberland River, $26,390,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Martin County, Kentucky, element of the Levisa and Tug Forks of the Big Sandy River and Upper Cumberland River, $5,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Pike County, Kentucky, element of the Levisa and Tug Forks of the Big Sandy River and Upper Cumberland River, $5,300,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Town of Martin (Levisa and Tug Forks of the Big Sandy River and Upper Cumberland River), Kentucky, $700,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Salyersville, Kentucky, $2,050,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Southern and Eastern Kentucky, Kentucky, $3,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Lake Pontchartrain and Vicinity (Hurricane Protection), Louisiana, $22,920,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Lake Pontchartrain (Jefferson Parish) Stormwater Discharge, Louisiana, $3,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Jackson County, Mississippi, $3,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Natchez Bluff, Mississippi, $4,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Pearl River, Mississippi (Walkiah Bluff), $2,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Joseph G. Minish Passaic River Park, New Jersey, $3,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Hudson River, Athens, New York, $8,700,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Lackawanna River, Olyphant, Pennsylvania, $1,400,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Lackawanna River, Scranton, Pennsylvania, $5,425,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Lycoming County, Pennsylvania, $339,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">South Central Pennsylvania Environment Improvement Program, $30,000,000, of which $10,000,000 shall be available only for water-related environmental infrastructure and resource protection and development projects in Lackawanna, Lycoming, Susquehanna, Wyoming, Pike, and Monroe counties in Pennsylvania in accordance with the purposes of subsection (a) and requirements of subsections (b) through (e) of section 313 of the Water Resources Development Act of 1992, as amended;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Wallisville Lake, Texas, $9,200,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Virginia Beach, Virginia (Reimbursement), $925,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Virginia Beach, Virginia (Hurricane Protection), $13,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">West Virginia and Pennsylvania Flood Control, West Virginia and Pennsylvania, $3,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Hatfield Bottom (Levisa and Tug Forks of the Big Sandy River and Upper Cumberland River), West Virginia, $1,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Lower Mingo (Kermit) (Levisa and Tug Forks of the Big Sandy River and Upper Cumberland River), West Virginia, $6,300,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Lower Mingo, West Virginia, Tributaries Supplement, $150,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Upper Mingo County (Levisa and Tug Forks of the Big Sandy River and Upper Cumberland River), West Virginia, $3,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Levisa Basin Flood Warning System (Levisa and Tug Forks of the Big Sandy River and Upper Cumberland River), Kentucky and Virginia, $400,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Tug Fork Basin Flood Warning System (Levisa and Tug Forks of the Big Sandy River and Upper Cumberland River), West Virginia, $400,000; and<page identifier="/us/stat/111/1323">111 STAT. 1323</page></listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Wayne County (Levisa and Tug Forks of the Big Sandy River and Upper Cumberland River), West Virginia, $1,200,000:</listContent></listItem> </list> <p class="indent0 fontsize10"><proviso><i>Provided,</i> That the Secretary of the Army, acting through the Chief of Engineers, is directed to proceed with design and construction of the Southeast Louisiana, Louisiana, project and to award continuing contracts, which are not to be considered fully funded, beginning in fiscal year 1998 consistent with the limit of the authorized appropriation ceiling:</proviso> <proviso><i>Provided further,</i> That the Secretary of the Army, acting through the Chief of Engineers, is directed to use $225,000 of funds provided herein to construct necessary repairs to the flume and conduit for flood control at the Hagerman’s Run, Williamsport, Pennsylvania, flood control project:</proviso> <proviso><i>Provided further,</i> That the Secretary of the Army is directed to incorporate the economic analyses for the Green Ridge and Plot sections of the Lackawanna River, Scranton, Pennsylvania, project with the economic analysis for the Albright Street section of the project, and to cost-share and implement these combined sections as a single project with no separable elements, except that each section may be undertaken individually when the non-Federal sponsor provides the applicable local cooperation requirements:</proviso> <proviso><i>Provided further,</i> That section 114 of Public Law 101–101, the Energy and Water Development Appropriations Act, 1990, is amended by striking<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/103/651">103 Stat. 651</ref>.</p></sidenote> “total cost of $19,600,000” and inserting “<quotedText>total cost of $40,000,000</quotedText>”:</proviso> <proviso><i>Provided further,</i> That the Secretary of the Army, acting through the Chief of Engineers, is authorized and directed to combine the Wilmington Harbor—Northeast Cape Fear River, North Carolina, project authorized in section 202(a) of the Water Resources Development Act of 1986, the Wilmington Harbor, Channel Widening, North Carolina, project authorized in section 101(a)(23) of the Water Resources Development Act of 1996, and the Cape Fear—Northeast (Cape Fear) Rivers, North Carolina, project authorized in section 101(a)(22) of the Water Resources Development Act of 1996 into a single project with one Project Cooperation Agreement based on cost snaring as a single project:</proviso> <proviso><i>Provided further,</i> That the Secretary of the Army, acting through the Chief of Engineers, is directed to use $20,000,000 of the funds appropriated herein to initiate construction of the Houston-Galveston Navigation Channels, Texas, project and execute a Project Cooperation Agreement for the entire project authorized in the Water Resources Development Act of 1996, Public Law 104–303:</proviso> <proviso><i>Provided further,</i> That the Secretary of the Army, acting through the Chief of Engineers, may use up to $5,000,000 of the funding appropriated herein to initiate construction of an emergency outlet from Devils Lake, North Dakota, to the Sheyenne River, and that this amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901(b)(2)(D)(i)); except that funds shall not become available unless the Secretary of the Army determines that an emergency (as defined in section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122)) exists with respect to the emergency need for the outlet and reports to Congress that the construction is technically sound, economically justified, and environmentally acceptable and in compliance with the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.):</proviso> <proviso><i>Provided further,</i> That the economic justification for the emergency outlet shall be prepared in accordance with the principles and guidelines for economic evaluation as <page identifier="/us/stat/111/1324">111 STAT. 1324</page>required by regulations and procedures of the Army Corps of Engineers for all flood control projects, and that the economic justification be fully described, including the analysis of the benefits and costs, in the project plan documents:</proviso> <proviso><i>Provided further,</i> That the plans for the emergency outlet shall be reviewed and, to be effective, shall contain assurances provided by the Secretary of State, after consultation with the International Joint Commission, that the project will not violate the requirements or intent of the Treaty Between the United States and Great Britain Relating to Boundary Waters Between the United States and Canada, signed at Washington January 11, 1909 (36 Stat. 2448; TS 548) (commonly known as the “Boundary Waters Treaty of 1909”):</proviso> <proviso><i>Provided further,</i> That the Secretary of the Army shall submit the final plans and other documents for the emergency outlet to Congress:</proviso> <proviso><i>Provided further,</i> That no funds made available under this Act or any other Act for any fiscal year may be used by the Secretary of the Army to carry out the portion of the feasibility study of the Devils Lake Basin, North Dakota, authorized under the Energy and Water Development Appropriations Act, 1993 (Public Law 102–377), that addresses the needs of the area for stabilized lake levels through inlet controls, or to otherwise study any facility or carry out any activity that would permit the transfer of water from the Missouri River Basin into Devils Lake:</proviso> <proviso><i>Provided further,</i> That the entire amount of $5,000,000 shall be available only to the extent an official budget request, that includes the designation of the entire amount of the request as an emergency requirement as defined by the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, is transmitted by the President to the Congress: <i>Provided further,</i> That the Secretary of the Army is directed to use $2,000,000 of the funds appropriated herein to implement section 211(f)(6) of Public Law 104–303 (110 Stat. 3683) and to reimburse the non-Federal sponsor a portion of the Federal share of project construction costs for the flood control components comprising the Brays Bayou element of the project for flood control, Buffalo Bayou and tributaries, Texas.</proviso></p> </content></appropriations> <appropriations level="small"> <heading>flood control, mississippi river and tributaries, arkansas, illinois, kentucky, louisiana, mississippi, missouri, and tennessee</heading> <content>For expenses necessary for prosecuting work of flood control, and rescue work, repair, restoration, or maintenance of flood control projects threatened or destroyed by flood, as authorized by law (33 U.S.C. 702a, 702g–1), $296,212,000, to remain available until expended: <proviso><i>Provided,</i> That notwithstanding the funding limitations set forth in Public Law 104–6 (109 Stat. 85), the Secretary of the Army, acting through the Chief of Engineers, is authorized and directed to use additional funds appropriated herein or previously appropriated to complete remedial measures to prevent slope instability at Hickman Bluff, Kentucky:</proviso> <proviso><i>Provided further,</i> That, using funds appropriated in this Act, the Secretary of the Army may construct the Ten and Fifteen Mile Bayou channel enlargement as an integral part of the work accomplished on the St. Francis Basin, Arkansas and Missouri Project, authorized by the Flood Control Act of 1950:</proviso> <proviso><i>Provided further,</i> That the Secretary of the Army, acting through the Chief of Engineers, is directed to use up to $4,000,000, including the $1,900,000 appropriated herein, to dredge Sardis Lake, Mississippi, at 100 percent Federal <page identifier="/us/stat/111/1325">111 STAT. 1325</page>cost, so that the City of Sardis, Mississippi, may proceed with its development of the valuable resources of Sardis Lake in Mississippi, consistent with language provided in House Report 104–679, accompanying the Fiscal Year 1997 Energy and Water Development Appropriations Act (Public Law 104–206):</proviso> <proviso><i>Provided further,</i> That within available funds, the Secretary of the Army, acting through the Chief of Engineers, is directed to conduct, at 100 percent Federal cost, the necessary Environmental Assessment and Impact Studies for the initial components of Sardis Lake development as provided in the Sardis Lake Recreation and Tourism Master Plan, Phase II.</proviso></content> </appropriations> <appropriations level="small"> <heading>operation and maintenance, general</heading> <content><p>For expenses necessary for the preservation, operation, maintenance, and care of existing river and harbor, flood control, and related works, including such sums as may be necessary for the maintenance of harbor channels provided by a State, municipality or other public agency, outside of harbor lines, and serving essential needs of general commerce and navigation; surveys and charting of northern and northwestern lakes and connecting waters; clearing and straightening channels; and removal of obstructions to navigation, $1,740,025,000, to remain available until expended, of which such sums as become available in the Harbor Maintenance Trust Fund, pursuant to Public Law 99–662, may be derived from that Fund, and of which such sums as become available from the special account established by the Land and Water Conservation Act of 1965, as amended (16 U.S.C. 4601), may be derived from that Fund for construction, operation, and maintenance of outdoor recreation facilities, and of which funds are provided for the following projects in the amounts specified:</p> <list> <listItem><listContent class="indent1 fontsize10 depth0">Anclote River, Florida, $1,500,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Beverly Shores, Indiana, $1,700,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Boston Harbor, Massachusetts, $16,500,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Flint River, Michigan, $875,000; and</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Raystown Lake, Pennsylvania, $4,690,000:</listContent></listItem> </list> <p class="indent0 fontsize10"><proviso><i>Provided,</i> That the Secretary of the Army, acting through the Chief of Engineers, is directed to use funds appropriated in Public Law 104–206 to reimburse the local sponsor of the Fort Myers Beach, Florida, project for the maintenance dredging performed by the local sponsor to open the authorized channel to navigation in fiscal year 1996:</proviso> <proviso><i>Provided further,</i> That no funds, whether appropriated, contributed, or otherwise provided, shall be available to the United States Army Corps of Engineers for the purpose of acquiring land in Jasper County, South Carolina, in connection with the Savannah Harbor navigation project:</proviso> <proviso><i>Provided further,</i> That the Secretary of the Army, acting through the Chief of Engineers, is authorized and directed to dredge a navigational channel in the Chena River at Fairbanks, Alaska, from its confluence with the Tanana River upstream to the University Road Bridge that will allow the safe passage during normal water levels of vessels up to 350 feet in length, 60 feet in width, and drafting up to 3 feet:</proviso> <proviso><i>Provided further,</i> That using $6,000,000 of funds appropriated herein, the Secretary of the Army is directed to extend the navigation channel on the Allegheny River, Pennsylvania, project to provide passenger boat access to the Kittanning, Pennsylvania, Riverfront Park:</proviso> <proviso><i>Provided further,</i> That the Secretary of the Army, acting through the Chief of Engineers, is directed to use $2,500,000 of the funds provided <page identifier="/us/stat/111/1326">111 STAT. 1326</page>herein to implement measures upstream of Lake Cumberland, Kentucky, to intercept and dispose of solid waste.</proviso></p> </content></appropriations> <appropriations level="small"> <heading>regulatory program</heading> <content>For expenses necessary for administration of laws pertaining to regulation of navigable waters and wetlands, $106,000,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>flood control and coastal emergencies</heading> <content>For expenses necessary for emergency flood control, hurricane, and shore protection activities, as authorized by section 5 of the Flood Control Act approved August 18, 1941, as amended, $4,000,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>formerly utilized sites remedial action program</heading> <subheading>(including transfer of funds)</subheading> <content>For expenses necessary to administer and execute the Formerly Utilized Sites Remedial Action Program to clean up contaminated sites throughout the United States where work was performed as part of the Nation’s early atomic energy program, $140,000,000, to remain available until expended: <proviso><i>Provided,</i> That the unexpended balances of prior appropriations provided for these activities in this Act or any previous Energy and Water Development Appropriations Act may be transferred to and merged with this appropriation account, and thereafter, may be accounted for as one fund for the same time period as originally enacted.</proviso></content> </appropriations> <appropriations level="small"> <heading>general expenses</heading> <content>For expenses necessary for general administration and related functions in the Office of the Chief of Engineers and offices of the Division Engineers; activities of the Coastal Engineering Research Board, the Humphreys Engineer Center Support Activity, the Engineering Strategic Studies Center, the Water Resources Support Center, and the USACE Finance Center; and for costs of implementing the Secretary of the Army’s plan to reduce the number of division offices as directed in title I, Public Law 104–206, $148,000,000, to remain available until expended: <proviso><i>Provided,</i> That no part of any other appropriation provided in title I of this Act shall be available to fund the activities of the Office of the Chief of Engineers or the executive direction and management activities of the division offices.</proviso></content> </appropriations> <appropriations level="small"> <heading>revolving fund</heading> <content>Amounts in the Revolving Fund may be used to construct a 17,000 square foot addition to the United States Army Corps of Engineers Alaska District main office building on Elemendorf Air Force Base. The Revolving Fund shall be reimbursed for such funding from the benefitting appropriations by collection each year of user fees sufficient to repay the capitalized cost of the asset and to operate and maintain the asset.<page identifier="/us/stat/111/1327">111 STAT. 1327</page></content> </appropriations> <appropriations level="small"> <heading>administrative provision</heading> <content>Appropriations in this title shall be available for official reception and representation expenses (not to exceed $5,000); and during the current fiscal year the Revolving Fund, Corps of Engineers, shall be available for purchase (not to exceed 100 for replacement only) and hire of passenger motor vehicles.</content> </appropriations> </appropriations> <level> <heading class="centered">GENERAL PROVISIONS</heading> <level> <heading class="centered"><inline class="smallCaps">Corps of Engineers—Civil</inline></heading> <section> <num value="101"><inline class="smallCaps">Sec</inline>. 101.</num> <content class="inline">In fiscal year 1998, the Secretary of the Army is authorized and directed to provide planning, design and construction assistance to non-Federal interests in carrying out water-related environmental infrastructure and environmental resources development projects in Alaska, including assistance for wastewater treatment and related facilities; water supply, storage, treatment and distribution facilities; and development, restoration or improvement of wetlands and other aquatic areas for the purpose of protection or development of surface water resources: <proviso><i>Provided,</i> That the non-Federal interest shall enter into a binding agreement with the Secretary wherein the non-Federal interest will provide all lands, easements, rights-of-way, relocations, and dredge material disposal areas required for the project, and pay 50 per centum of the costs of required feasibility studies, 25 per centum of the costs of designing and constructing the project, and 100 per centum of the costs of operation, maintenance, repair, replacement or rehabilitation of the project:</proviso> <proviso><i>Provided further,</i> That the value of lands, easements, rights-of-way, relocations and dredged material disposal areas provided by the non-Federal interest shall be credited toward the non-Federal share, not to exceed 25 per centum, of the costs of designing and constructing the project:</proviso> <proviso><i>Provided further,</i> That utilizing $5,000,000 of the funds appropriated herein, the Secretary is directed to carry out this section.</proviso></content> </section> </level> <level> <heading class="centered"><inline class="smallCaps">Green Brook Sub-Basin Flood Control Project, New Jersey</inline></heading> <section> <num value="102"><inline class="smallCaps">Sec</inline>. 102.</num> <content class="inline">No funds made available under this Act or any other Act for any fiscal year may be used by the Secretary of the Army to construct the Oak Way detention structure or the Sky Top detention structure in Berkeley Heights, New Jersey, as part of the project for flood control, Green Brook Sub-Basin, Raritan River Basin, New Jersey, authorized by section 401(a) of the Water Resources Development Act of 1986 (Public Law 99–662; 100 Stat. 4119).</content> </section> </level> </level> <num value="II">TITLE II</num> <heading>DEPARTMENT OF THE INTERIOR</heading> <appropriations level="intermediate"> <heading>Central Utah Project</heading> <appropriations level="small"> <heading>central utah project completion account</heading> <content><p class="indent0 fontsize10">For carrying out activities authorized by the Central Utah Project Completion Act, and for activities related to the Uintah and Upalco Units authorized by 43 U.S.C. 620, $40,353,000, to <page identifier="/us/stat/111/1328">111 STAT. 1328</page>remain available until expended, of which $16,610,000 shall be deposited into the Utah Reclamation Mitigation and Conservation Account: <proviso><i>Provided,</i> That of the amounts deposited into that account, $5,000,000 shall be considered the Federal contribution authorized by paragraph 402(b)(2) of the Central Utah Project Completion Act and $11,610,000 shall be available to the Utah Reclamation Mitigation and Conservation Commission to carry out activities authorized under that Act.</proviso></p> <p class="indent0 fontsize10">In addition, for necessary expenses incurred in carrying out related responsibilities of the Secretary of the Interior, $800,000, to remain available until expended.</p> </content></appropriations> </appropriations> <appropriations level="small"> <heading>Bureau of Reclamation</heading> <chapeau>For carrying out the functions of the Bureau of Reclamation as provided in the Federal reclamation laws (Act of June 17, 1902, 32 Stat. 388, and Acts amendatory thereof or supplementary thereto) and other Acts applicable to that Bureau as follows:</chapeau> <appropriations level="small"> <heading>water and related resources</heading> <subheading>(including transfer of funds)</subheading> <content>For management, development, and restoration of water and related natural resources and for related activities, including the operation, maintenance and rehabilitation of reclamation and other facilities, participation in fulfilling related Federal responsibilities to Native Americans, and related grants to, and cooperative and other agreements with, State and local governments, Indian tribes, and others, $694,348,000, to remain available until expended, of which $18,758,000 shall be available for transfer to the Upper Colorado River Basin Fund and $56,442,000 shall be available for transfer to the Lower Colorado River Basin Development Fund, and of which such amounts as may be necessary may be advanced to the Colorado River Dam Fund: <proviso><i>Provided,</i> That such transfers may be increased or decreased within the overall appropriation under this heading:</proviso> <proviso><i>Provided further,</i> That of the total appropriated, the amount for program activities that can be financed by the Reclamation Fund or the Bureau of Reclamation special fee account established by 16 U.S.C. 4601–6a(i) shall be derived from that Fund or account:</proviso> <proviso><i>Provided further,</i> That funds contributed under 43 U.S.C. 395 are available until expended for the purposes for which contributed:</proviso> <proviso><i>Provided further,</i> That funds advanced under 43 U.S.C. 397a shall be credited to this account and are available until expended for the same purposes as the sums appropriated under this heading:</proviso> <proviso><i>Provided further,</i> That any amounts provided for the safety of dams modification work at Coolidge Dam, San Carlos Irrigation Project, Arizona, are in addition to the amount authorized in 43 U.S.C. 509:</proviso> <proviso><i>Provided further,</i> That using $500,000 of funds appropriated herein, the Secretary of the Interior shall undertake a non-reimbursable project to install drains in the Pena Blanca area of New Mexico to prevent seepage from Cochiti Dam:</proviso> <proviso><i>Provided further,</i> That funds available for expenditure for the Departmental Irrigation Drainage Program may be expended by the Bureau of Reclamation for site remediation on a non-reimbursable basis:</proviso> <proviso><i>Provided further,</i> That the amount authorized for Indian municipal, rural, and industrial water features by section 10 of Public Law 89–108, as amended by section 8 of Public Law 99–<page identifier="/us/stat/111/1329">111 STAT. 1329</page>294 and section 1701(b) of Public Law 102–575, is increased by $1,300,000 (October 1997 prices):</proviso> <proviso><i>Provided further,</i> That the unexpended balances of the Bureau of Reclamation appropriation accounts for “Construction Program (Including Transfer of Funds)”, “General Investigations”, “Emergency Fund”, and “Operation and Maintenance” shall be transferred to and merged with this account, to be available for the purposes for which they originally were appropriated:</proviso> <proviso><i>Provided further,</i> That the Secretary of the Interior may use $2,500,000 of funds appropriated herein to initiate construction of the McCall Area Wastewater Reclamation and Reuse, Idaho, project.</proviso></content> </appropriations> <appropriations level="small"> <heading>bureau of reclamation loan program account</heading> <content><p class="indent0 fontsize10">For the cost of direct loans and/or grants, $10,000,000, to remain available until expended, as authorized by the Small Reclamation Projects Act of August 6, 1956, as amended (43 U.S.C. 422a–4221): <proviso><i>Provided,</i> That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974:</proviso> <proviso><i>Provided further,</i> That these funds are available to subsidize gross obligations for the principal amount of direct loans not to exceed $31,000,000.</proviso></p> <p class="indent0 fontsize10">In addition, for administrative expenses necessary to carry out the program for direct loans and/or grants, $425,000, to remain available until expended: <proviso><i>Provided,</i> That of the total sums appropriated, the amount of program activities that can be financed by the Reclamation Fund shall be derived from that Fund.</proviso></p> </content></appropriations> <appropriations level="small"> <heading>central valley project restoration fund</heading> <content>For carrying out the programs, projects, plans, and habitat restoration, improvement, and acquisition provisions of the Central Valley Project Improvement Act, such sums as may be collected in the Central Valley Project Restoration Fund pursuant to sections 3407(d), 3404(c)(3), 3405(f), and 3406(c)(1) of Public Law 102–575, to remain available until expended: <proviso><i>Provided,</i> That the Bureau of Reclamation is directed to levy additional mitigation and restoration payments totaling no more than $25,130,000 (October 1992 Erice levels) on a three-year rolling average basis, as authorized y section 3407(d) of Public Law 102–575.</proviso></content> </appropriations> <appropriations level="small"> <heading>california bay-delta ecosystem restoration</heading> <subheading>(including transfer of funds)</subheading> <content>For necessary expenses of the Department of the Interior and other participating Federal agencies in carrying out the California Bay-Delta Environmental Enhancement and Water Security Act consistent with plans to be approved by the Secretary of the Interior, in consultation with such Federal agencies, $85,000,000, to remain available until expended, of which such amounts as may be necessary to conform with such plans shall be transferred to appropriate accounts of such Federal agencies: <proviso><i>Provided,</i> That such funds may be obligated only as non-Federal sources provide their share in accordance with the cost-sharing agreement required under section 102(d) of such Act:</proviso> <proviso><i>Provided further,</i> That such funds may be obligated prior to the completion of a final programmatic environmental impact statement only if: (1) consistent with 40 CFR <page identifier="/us/stat/111/1330">111 STAT. 1330</page>1506.1(c); and (2) used for purposes that the Secretary finds are of sufficiently high priority to warrant such an expenditure.</proviso></content> </appropriations> <appropriations level="small"> <heading>policy and administration</heading> <content>For necessary expenses of policy, administration, and related functions in the office of the Commissioner, the Denver office, and offices in the five regions of the Bureau of Reclamation, to remain available until expended, $47,558,000, to be derived from the Reclamation Fund and be nonreimbursable as provided in 43 U.S.C. 377: <proviso><i>Provided,</i> That no part of any other appropriation in this Act shall be available for activities or functions budgeted as policy and administration expenses.</proviso></content> </appropriations> <appropriations level="small"> <heading>administrative provision</heading> <content>Appropriations for the Bureau of Reclamation shall be available for purchase of not to exceed six passenger motor vehicles for replacement only.</content> </appropriations> </appropriations> <num value="III">TITLE III</num> <heading>DEPARTMENT OF ENERGY</heading> <appropriations level="intermediate"> <heading>Energy Programs</heading> <appropriations level="small"> <heading>energy supply</heading> <content>For expenses of the Department of Energy activities including the purchase, construction and acquisition of plant and capital equipment and other expenses necessary for energy supply, and uranium supply and enrichment activities in carrying out the purposes of the Department of Energy Organization Act (42 U.S.C. 7101 et seq.), including the acquisition or condemnation of any real property or any facility or for plant or facility acquisition, construction, or expansion, $906,807,000.</content> </appropriations> <appropriations level="small"> <heading>non-defense environmental management</heading> <content>For Department of Energy expenses, including the purchase, construction and acquisition of plant and capital equipment and other expenses necessary for non-defense environmental management activities in carrying out the purposes of the Department of Energy Organization Act (42 U.S.C. 7101 et seq.), including the acquisition or condemnation of any real property or any facility or for plant or facility acquisition, construction or expansion, $497,059,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>uranium enrichment decontamination and decommissioning fund</heading> <content>For necessary expenses in carrying out uranium enrichment facility decontamination and decommissioning, remedial actions and other activities of title II of the Atomic Energy Act of 1954 and title X, subtitle A of the Energy Policy Act of 1992, $220,200,000, to be derived from the Fund, to remain available until expended: <proviso><i>Provided,</i> That $40,000,000 of amounts derived from the Fund for such expenses shall be available in accordance with title X, subtitle A, of the Energy Policy Act of 1992.</proviso><page identifier="/us/stat/111/1331">111 STAT. 1331</page></content> </appropriations> <appropriations level="small"> <heading>science</heading> <content>For expenses of the Department of Energy activities including the purchase, construction and acquisition of plant and capital equipment and other expenses necessary for science activities in carrying out the purposes of the Department of Energy Organization Act (42 U.S.C. 7101 et seq.), including the acquisition or condemnation of any real property or facility or for plant or facility acquisition, construction, or expansion, and purchase of 15 passenger motor vehicles for replacement only, $2,235,708,000, to remain available until expended: <proviso><i>Provided,</i> That $35,000,000 of the unobligated balances originally available for Superconducting Super Collider termination activities shall be made available for other activities under this heading.</proviso></content> </appropriations> <appropriations level="small"> <heading>nuclear waste disposal fund</heading> <content>For nuclear waste disposal activities to carry out the purposes of Public Law 97–425, as amended, including the acquisition of real property or facility construction or expansion, $160,000,000, to remain available until expended, to be derived from the Nuclear Waste Fund; of which $4,000,000 shall be available to the Nuclear Regulatory Commission to license a multi-purpose canister design; and of which not to exceed $5,000,000 may be provided to affected local governments, as defined in Public Law 97–425, to conduct appropriate activities pursuant to the Act: <proviso><i>Provided,</i> That the distribution of the funds to the units of local government shall be determined by the Department of Energy:</proviso> <proviso><i>Provided further,</i> That the funds shall be made available to the units of local government by direct payment:</proviso> <proviso><i>Provided further,</i> That within ninety days of the completion of each Federal fiscal year, each local entity shall provide certification to the Department of Energy, that all funds expended from such payments have been expended for activities as defined in Public Law 97–425. Failure to provide such certification shall cause such entity to be prohibited from any further funding provided for similar activities:</proviso> <proviso><i>Provided further,</i> That none of the funds herein appropriated may be: (1) used directly or indirectly to influence legislative action on any matter pending before Congress or a State legislature or for lobbying activity as provided in 18 U.S.C. 1913; (2) used for litigation expenses; or (3) used to support multistate efforts or other coalition building activities inconsistent with the restrictions contained in this Act:</proviso> <proviso><i>Provided further,</i> That none of the funds provided herein shall be distributed to the State of Nevada by direct payment, grant, or other means, for financial assistance under section 116 of the Nuclear Waste Policy Act of 1982, as amended:</proviso> <proviso><i>Provided further,</i> That the foregoing proviso shall not apply to payments in lieu of taxes under section 116(c)(3)(A) of the Nuclear Waste Policy Act of 1982, as amended.</proviso></content> </appropriations> <appropriations level="small"> <heading>departmental administration</heading> <content>For salaries and expenses of the Department of Energy necessary for departmental administration in carrying out the purposes of the Department of Energy Organization Act (42 U.S.C. 7101 et seq.), including the hire of passenger motor vehicles and official reception and representation expenses (not to exceed $35,000), $218,747,000, to remain available until expended: <proviso><i>Provided,</i> That <page identifier="/us/stat/111/1332">111 STAT. 1332</page>moneys received by the Department for miscellaneous revenues estimated to total $131,330,000 in fiscal year 1998 may be retained and used for operating expenses within this account, and may remain available until expended, as authorized by section 201 of Public Law 95–238, notwithstanding the provisions of 31 U.S.C. 3302:</proviso> <proviso><i>Provided further,</i> That the sum herein appropriated shall be reduced by the amount of miscellaneous revenues received during fiscal year 1998 so as to result in a final fiscal year 1998 appropriation from the General Fund estimated at not more than $87,417,000.</proviso></content> </appropriations> <appropriations level="small"> <heading>office of the inspector general</heading> <content>For necessary expenses of the Office of the Inspector General in carrying out the provisions of the Inspector General Act of 1978, as amended, $27,500,000, to remain available until expended.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Atomic Energy Defense Activities</heading> <appropriations level="small"> <heading>weapons activities</heading> <content>For Department of Energy expenses, including the purchase, construction and acquisition of plant and capital equipment and other incidental expenses necessary for atomic energy defense weapons activities in carrying out the purposes of the Department of Energy Organization Act (42 U.S.C. 7101 et seq.), including the acquisition or condemnation of any real property or any facility or for plant or facility acquisition, construction, or expansion; and the purchase of passenger motor vehicles (not to exceed 70 for replacement only), $4,146,692,000, to remain available until expended: <proviso><i>Provided,</i> That funding for any ballistic missile defense program undertaken by the Department of Energy for the Department of Defense shall be provided by the Department of Defense according to procedures established for Work for Others by the Department of Energy.</proviso></content> </appropriations> <appropriations level="small"> <heading>defense environmental restoration and waste management</heading> <content>For Department of Energy expenses, including the purchase, construction and acquisition of plant and capital equipment and other expenses necessary for atomic energy defense environmental restoration and waste management activities in carrying out the purposes of the Department of Energy Organization Act (42 U.S.C. 7101 et seq.), including the acquisition or condemnation of any real property or any facility or for plant or facility acquisition, construction, or expansion; and the purchase of passenger motor vehicles (not to exceed 6 for replacement only), $4,429,438,000, to remain available until expended; and, in addition, $200,000,000 for privatization projects, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>defense facilities closure projects</heading> <content>For expenses of the Department of Energy to accelerate the closure of defense environmental management sites, including the purchase, construction and acquisition of plant and capital equipment and other necessary expenses, $890,800,000, to remain available until expended.<page identifier="/us/stat/111/1333">111 STAT. 1333</page></content> </appropriations> <appropriations level="small"> <heading>other defense activities</heading> <content>For Department of Energy expenses, including the purchase, construction and acquisition of plant and capital equipment and other expenses necessary for atomic energy defense, other defense activities, in carrying out the purposes of the Department of Energy Organization Act (42 U.S.C. 7101, et seq.), including the acquisition or condemnation of any real property or any facility or for plant or facility acquisition, construction, or expansion, and the purchase of passenger motor vehicles (not to exceed 2 for replacement only), $1,666,008,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>defense nuclear waste disposal</heading> <content>For nuclear waste disposal activities to carry out the purposes of Public Law 97–425, as amended, including the acquisition of real property or facility construction or expansion, $190,000,000, to remain available until expended.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Power Marketing Administrations</heading> <appropriations level="small"> <heading>operation and maintenance, alaska power administration</heading> <content>For necessary expenses of operation and maintenance of projects in Alaska and of marketing electric power and energy, $3,500,000, to remain available until expended; and, in addition, $10,000,000 for capital assets acquisition, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>bonneville power administration fund</heading> <content><p class="indent0 fontsize10">Expenditures from the Bonneville Power Administration Fund, established pursuant to Public Law 93–454, are approved for the anadromous fish supplementation facilities in the Yakima River Basin, Methow River Basin and Upper Snake River Basin, for the Billy Shaw Reservoir resident fish substitution project, and for the resident trout fish culture facility in Southeast Idaho; and official reception and representation expenses in an amount not to exceed $3,000.</p> <p class="indent0 fontsize10">During fiscal year 1998, no new direct loan obligations may be made.</p> </content></appropriations> <appropriations level="small"> <heading>operation and maintenance, southeastern power administration</heading> <content>For necessary expenses of operation and maintenance of power transmission facilities and of marketing electric power and energy pursuant to the provisions of section 5 of the Flood Control Act of 1944 (16 U.S.C. 825s), as applied to the southeastern power area, $12,222,000, to remain available until expended; in addition, notwithstanding 31 U.S.C. 3302, not to exceed $20,000,000 in reimbursements for transmission wheeling and ancillary services, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>operation and maintenance, southwestern power administration</heading> <content>For necessary expenses of operation and maintenance of power transmission facilities and of marketing electric power and energy, <page identifier="/us/stat/111/1334">111 STAT. 1334</page>and for construction and acquisition of transmission lines, substations and appurtenant facilities, and for administrative expenses, including official reception and representation expenses in an amount not to exceed $1,500 in carrying out the provisions of section 5 of the Flood Control Act of 1944 (16 U.S.C. 825s), as applied to the southwestern power area, $25,210,000, to remain available until expended; in addition, notwithstanding the provisions of 31 U.S.C. 3302, not to exceed $4,650,000 in reimbursements, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>construction, rehabilitation, operation and maintenance, western area power administration</heading> <subheading>(including transfer of funds)</subheading> <content>For carrying out the functions authorized by title III, section 302(a)(1)(E) of the Act of August 4, 1977 (42 U.S.C. 7101 et seq.), and other related activities including conservation and renewable resources programs as authorized, including the replacement of not more than two helicopters through transfers, exchanges, or sale, and official reception and representation expenses in an amount not to exceed $1,500, $189,043,000, to remain available until expended, of which $182,806,000 shall be derived from the Department of the Interior Reclamation Fund: <proviso><i>Provided,</i> That of the amount herein appropriated, $5,592,000 is for deposit into the Utah Reclamation Mitigation and Conservation Account pursuant to title IV of the Reclamation Projects Authorization and Adjustment Act of 1992:</proviso> <proviso><i>Provided further,</i> That the Secretary of the Treasury is authorized to transfer from the Colorado River Dam Fund to the Western Area Power Administration $5,592,000 to carry out the power marketing and transmission activities of the Boulder Canyon project as provided in section 104(a)(4) of the Hoover Power Plant Act of 1984, to remain available until expended.</proviso></content> </appropriations> <appropriations level="small"> <heading>falcon and amistad operating and maintenance fund</heading> <content>For operation, maintenance, and emergency costs for the hydroelectric facilities at the Falcon and Amistad Dams, $970,000, to remain available until expended, and to be derived from the Falcon and Amistad Operating and Maintenance Fund of the Western Area Power Administration, as provided in section 423 of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Federal Energy Regulatory Commission</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Federal Energy Regulatory Commission to carry out the provisions of the Department of Energy Organization Act (42 U.S.C. 7101 et seq.), including services as authorized by 5 U.S.C. 3109, the hire of passenger motor vehicles, and official reception and representation expenses (not to exceed $3,000), $162,141,000, to remain available until expended: <proviso><i>Provided,</i> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s7171">42 USC 7171 note</ref>.</p></sidenote>That notwithstanding any other provision of law, not to exceed $162,141,000 of revenues from fees and annual charges, and other services and collections in fiscal year 1998 shall be retained and used for necessary expenses in this account, and shall remain available until expended:</proviso> <proviso><i>Provided further,</i> That the sum herein appropriated from the General Fund shall be reduced as revenues <page identifier="/us/stat/111/1335">111 STAT. 1335</page>are received during fiscal year 1998 so as to result in a final fiscal year 1998 appropriation from the General Fund estimated at not more than $0.</proviso></content> </appropriations> </appropriations> <level> <heading class="centered">GENERAL PROVISIONS</heading> <level> <heading class="centered"><inline class="smallCaps">Department of Energy</inline></heading> <section> <num value="301"><inline class="smallCaps">Sec</inline>. 301.</num> <subsection class="inline"><num value="a">(a)</num> <content>None of the funds appropriated by this Act or any prior appropriations Act may be used to award a management and operating contract unless such contract is awarded using competitive procedures or the Secretary of Energy grants, on a case-by-case basis, a waiver to allow for such a deviation. The Secretary may not delegate the authority to grant such a waiver.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>At least 60 days before a contract award, amendment,<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> or modification for which the Secretary intends to grant such a waiver, the Secretary shall submit to the Subcommittees on Energy and Water Development of the Committees on Appropriations of the House of Representatives and the Senate a report notifying the subcommittees of the waiver and setting forth the reasons for the waiver.</content> </subsection> </section> <section> <num value="302"><inline class="smallCaps">Sec</inline>. 302.</num> <num value="a">(a)</num> <subsection class="inline"><content>None of the funds appropriated by this Act or any prior appropriations Act may be used to award, amend, or modify a contract in a manner that deviates from the Federal Acquisition Regulation, unless the Secretary of Energy grants, on a case-by-case basis, a waiver to allow for such a deviation. The Secretary may not delegate the authority to grant such a waiver.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>At least 60 days before a contract award, amendment,<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> or modification for which the Secretary intends to grant such a waiver, the Secretary shall submit to the Subcommittees on Energy and Water Development of the Committees on Appropriations of the House of Representatives and the Senate a report notifying the subcommittees of the waiver and setting forth the reasons for the waiver.</content> </subsection> </section> <section> <num value="303"><inline class="smallCaps">Sec</inline>. 303.</num> <chapeau>None of the funds appropriated by this Act or any prior appropriations Act may be used to—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>develop or implement a workforce restructuring plan that covers employees of the Department of Energy; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>provide enhanced severance payments or other benefits for employees of the Department of Energy;</content></paragraph> <continuation class="indent0 fontsize10">under section 3161 of the National Defense Authorization Act for Fiscal Year 1993 (Public Law 102–484; 106 Stat. 2644; 42 U.S.C. 7274h).</continuation> </section> <section> <num value="304"><inline class="smallCaps">Sec</inline>. 304.</num> <content class="inline">None of the funds appropriated by this Act or any prior appropriations Act may be used to augment the $61,159,000 made available for obligation by this Act for severance payments and other benefits and community assistance grants under section 3161 of the National Defense Authorization Act for Fiscal Year 1993 (Public Law 102–484; 106 Stat. 2644; 42 U.S.C. 7274h).</content> </section> <section> <num value="305"><inline class="smallCaps">Sec</inline>. 305.</num> <content class="inline">None of the funds appropriated by this Act or any prior appropriations Act may be used to prepare or initiate Requests For Proposals (RFPs) for a program if the program has not been funded by Congress.<page identifier="/us/stat/111/1336">111 STAT. 1336</page></content> </section> <level> <heading class="centered">(<inline class="smallCaps">transfers of unexpended balances</inline>)</heading> <section> <num value="306"><inline class="smallCaps">Sec</inline>. 306.</num> <content class="inline">The unexpended balances of prior appropriations provided for activities in this Act may be transferred to appropriation accounts for such activities established pursuant to this title. Balances so transferred may be merged with funds in the applicable established accounts and thereafter may be accounted for as one fund for the same time period as originally enacted.</content> </section> </level> </level> </level> <num value="IV">TITLE IV</num> <heading>INDEPENDENT AGENCIES</heading> <appropriations level="intermediate"> <heading>Appalachian Regional Commission</heading> <content><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t40/s401">40 USC app. 401 note</ref>.</p></sidenote>For expenses necessary to carry out the programs authorized by the Appalachian Regional Development Act of 1965, as amended, notwithstanding section 405 of said Act, and for necessary expenses for the Federal Co-Chairman and the alternate on the Appalachian Regional Commission and for payment of the Federal share of the administrative expenses of the Commission, including services as authorized by 5 U.S.C. 3109, and hire of passenger motor vehicles, $170,000,000, to remain available until expended.</content> </appropriations> <appropriations level="intermediate"> <heading>Defense Nuclear Facilities Safety Board</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Defense Nuclear Facilities Safety Board in carrying out activities authorized by the Atomic Energy Act of 1954, as amended by Public Law 100–456, section 1441, $17,000,000, to remain available until expended.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Nuclear Regulatory Commission</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(including transfer of funds)</subheading> <content>For necessary expenses of the Commission in carrying out the purposes of the Energy Reorganization Act of 1974, as amended, and the Atomic Energy Act of 1954, as amended, including the employment of aliens; services authorized by 5 U.S.C. 3109; publication and dissemination of atomic information; purchase, repair, and cleaning of uniforms; official representation expenses (not to exceed $20,000); reimbursements to the General Services Administration for security guard services; hire of passenger motor vehicles and aircraft, $468,000,000, to remain available until expended: <proviso><i>Provided,</i> That of the amount appropriated herein, $15,000,000 shall be derived from the Nuclear Waste Fund:</proviso> <proviso><i>Provided further,</i> That from this appropriation, transfers of sums may be made to other agencies of the Government for the performance of the work . for which this appropriation is made, and in such cases the sums so transferred may be merged with the appropriation to which transferred:</proviso> <proviso><i>Provided further,</i> That moneys received by the Commission for the cooperative nuclear safety research program, services rendered to State governments, foreign governments and international organizations, and the material and information access authorization programs, including criminal history checks under <page identifier="/us/stat/111/1337">111 STAT. 1337</page>section 149 of the Atomic Energy Act may be retained and used for salaries and expenses associated with those activities, notwithstanding 31 U.S.C. 3302, and shall remain available until expended:</proviso> <proviso><i>Provided further,</i> That revenues from licensing fees, inspection services, and other services and collections estimated at $450,000,000 in fiscal year 1998 shall be retained and used for necessary salaries and expenses in this account, notwithstanding 31 U.S.C. 3302, and shall remain available until expended:</proviso> <proviso><i>Provided further,</i> That $3,000,000 of the funds herein appropriated for regulatory reviews and other assistance provided to the Department of Energy and other Federal agencies shall be excluded from license fee revenues, notwithstanding 42 U.S.C. 2214:</proviso> <proviso><i>Provided further,</i> That the sum herein appropriated shall be reduced by the amount of revenues received during fiscal year 1998 from licensing fees, inspection services and other services and collections, excluding those moneys received for the cooperative nuclear safety research program, services rendered to State governments, foreign governments and international organizations, and the material and information access authorization programs, so as to result in a final fiscal year 1998 appropriation estimated at not more than $18,000,000.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Office of Inspector General</heading> <subheading>(including transfer of funds)</subheading> <content>For necessary expenses of the Office of Inspector General in carrying out the provisions of the Inspector General Act of 1978, as amended, including services authorized by 5 U.S.C. 3109, $4,800,000, to remain available until expended; and in addition, an amount not to exceed 5 percent of this sum may be transferred from Salaries and Expenses, Nuclear Regulatory Commission: <proviso><i>Provided,</i> That notice of such transfers shall be given to the Committees on Appropriations of the House of Representatives and Senate:</proviso> <proviso><i>Provided further,</i> That from this appropriation, transfers of sums may be made to other agencies of the Government for the performance of the work for which this appropriation is made, and in such cases the sums so transferred may be merged with the appropriation to which transferred:</proviso> <proviso><i>Provided further,</i> That revenues from licensing fees, inspection services, and other services and collections shall be retained and used for necessary salaries and expenses in this account, notwithstanding 31 U.S.C. 3302, and shall remain available until expended:</proviso> <proviso><i>Provided further,</i> That the sum herein appropriated shall be reduced by the amount of revenues received during fiscal year 1998 from licensing fees, inspection services, and other services and collections, so as to result in a final fiscal year 1998 appropriation estimated at not more than $0.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Nuclear Waste Technical Review Board</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Nuclear Waste Technical Review Board, as authorized by Public Law 100–203, section 5051, $2,600,000, to be derived from the Nuclear Waste Fund, and to remain available until expended.<page identifier="/us/stat/111/1338">111 STAT. 1338</page></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Tennessee Valley Authority</heading> <content>For the purpose of carrying out the provisions of the Tennessee Valley Authority Act of 1933, as amended (16 U.S.C. ch. 12A), including hire, maintenance, and operation of aircraft, and purchase and hire of passenger motor vehicles, $70,000,000, to remain available until expended, of which $6,900,000 shall be available for operation, maintenance, surveillance, and improvement of Land<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s831ee">16 USC 831ee</ref>.</p></sidenote> Between the Lakes; and for essential stewardship activities for which appropriations were provided to the Tennessee Valley Authority in Public Law 104–206, such sums as are necessary in fiscal year 1999 and thereafter, to be derived only from one or more of the following sources: nonpower fund balances and collections; investment returns of the nonpower program; applied programmatic savings in the power and nonpower programs; savings from the suspension of bonuses and awards; savings from reductions in memberships and contributions; increases in collections resulting from nonpower activities, including user fees; or increases in charges to private and public utilities both investor and cooperatively owned, as well as to direct load customers: <proviso><i>Provided,</i> That such funds are available to fund the stewardship activities under this paragraph, notwithstanding sections 11, 14, 15, 29, or other provisions of the Tennessee Valley Authority Act, as amended, or provisions of the TVA power bond covenants:</proviso> <proviso><i>Provided further,</i> That the savings from, and revenue adjustments to, the TVA budget in fiscal year 1999 and thereafter shall be sufficient to fund the aforementioned stewardship activities such that the net spending authority and resulting outlays for these activities shall not exceed $0 in fiscal year 1999 and thereafter.</proviso></content> </appropriations> <num value="V">TITLE V</num> <heading class="centered">GENERAL PROVISIONS</heading> <section> <num value="501"><inline class="smallCaps">Sec</inline>. 501.</num> <content class="inline">None of the funds appropriated by this Act may be used in any way, directly or indirectly, to influence congressional action on any legislation or appropriation matters pending before Congress, other than to communicate to Members of Congress as described in section 1913 of title 18, United States Code.</content> </section> <section> <num value="502"><inline class="smallCaps">Sec</inline>. 502.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Purchase of American-Made Equipment and Products</inline>.—</heading><content>It is the sense of the Congress that, to the greatest extent practicable, all equipment and products purchased with funds made available in this Act should be American-made.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Notice Requirement</inline>.—</heading><content>In providing financial assistance to, or entering into any contract with, any entity using funds made available in this Act, the head of each Federal agency, to the greatest extent practicable, shall provide to such entity a notice describing the statement made in subsection (a) by the Congress.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Prohibition of Contracts With Persons Falsely Labeling Products as Made in America</inline>.—</heading><content>If it has been finally determined by a court or Federal agency that any person intentionally affixed a label bearing a “Made in America” inscription, or any inscription with the same meaning, to any product sold in or shipped to the United States that is not made in the United States, the person shall be ineligible to receive any contract or subcontract made with funds made available in this Act, pursuant to the debarment, suspension, and ineligibility procedures described in sections 9.400 through 9.409 of title 48, Code of Federal Regulations.<page identifier="/us/stat/111/1339">111 STAT. 1339</page></content> </subsection> </section> <section> <num value="503"><inline class="smallCaps">Sec</inline>. 503.</num> <content class="inline">None of the funds made available in this Act may be provided by contract or by grant (including a grant of funds to be available for student aid) to any institution of higher education, or subelement thereof, that is currently ineligible for contracts and grants pursuant to section 514 of the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 1997 (as contained in section 101(e) of division A of Public Law 104–208; 110 Stat. 3009–270).</content> </section> <section> <num value="504"><inline class="smallCaps">Sec</inline>. 504.</num> <content class="inline">None of the funds made available in this Act may be obligated or expended to enter into or renew a contract with a contractor that is subject to the reporting requirement set forth in subsection (d) of section 4212 of title 38, United States Code, but has not submitted the most recent report required by such subsection.</content> </section> <section> <num value="505"><inline class="smallCaps">Sec</inline>. 505.</num> <content class="inline">None of the funds made available in this Act to pay the salary of any officer or employee of the Department of the Interior may be used for the Animas-La Plata Project, in Colorado and New Mexico, except for: (1) activities required to comply with the applicable provisions of current law; and (2) continuation of activities pursuant to the Colorado Ute Indian Water Rights Settlement Act of 1988 (Public Law 100–585).</content> </section> <section> <num value="506"><inline class="smallCaps">Sec</inline>. 506.</num> <chapeau class="inline">Section 1621 of title XVI of the Reclamation Wastewater and Groundwater Act, Public Law 104–266, is amended<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t43/s390h–12g">43 USC 390h–12g</ref>.</p></sidenote> by—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>striking “<quotedText>study</quotedText>” in the section title and in subsection (a), and inserting “<quotedText>project</quotedText>” into the title and in subsection (a);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>inserting in subsection (a) “planning, design, and construction of the” following “to participate in the”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>inserting in subsection (a) “and nonpotable surface water” following “impaired ground water”.</content></paragraph> </section> <section> <num value="507"><inline class="smallCaps">Sec</inline>. 507.</num> <content class="inline">Section 1208(a)(2) of the Yavapai-Prescott Indian Treaty Settlement Act of 1994 (Public Law 103–434) is amended<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/108/4562">108 Stat. 4562</ref>.</p></sidenote> by striking “<quotedText>$4,000,000 for construction</quotedText>” and inserting “<quotedText>$13,000,000, at 1997 prices, for construction plus or minus such amounts as may be justified by reason of ordinary fluctuations of applicable cost indexes</quotedText>”.</content> </section> <section> <num value="508"><inline class="smallCaps">Sec</inline>. 508.</num> <subsection class="inline"><num value="a">(a)</num> <content>The State of West Virginia shall receive credit<sidenote><p class="indent0 firstIndent0 fontsize8">West Virginia.</p></sidenote> towards its required contribution under Contract No. DACW59–C–0071 for the cost of recreational facilities to be constructed by a joint venture of the State in cooperation with private interests for recreation development at Stonewall Jackson Lake, West Virginia, except that the State shall receive no credit for costs associated with golf course development and the amount of the credit may not exceed the amount owed by the State under the Contract.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>The Corps of Engineers shall revise both the 1977 recreation cost-sharing agreement and the Park and Recreation Lease dated October 2, 1995 to remove the requirement that such recreation facilities are to be owned by the Government at the time of their completion as contained in Article 2–06 of the cost-sharing agreement and Article 36 of the lease.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <content>Nothing in this section shall reduce the amount of funds owed the United States Government pursuant to the 1977 recreation cost-sharing agreement.</content> </subsection> </section> <section> <num value="509"><inline class="smallCaps">Sec</inline>. 509.</num> <content class="inline">Amounts to be transferred to the Department of Energy by the United States Enrichment Corporation (USEC) <page identifier="/us/stat/111/1340">111 STAT. 1340</page>pursuant to this section shall be retained and used for the specific purpose of development and demonstration of AVLIS technology for uranium enrichment: <proviso><i>Provided,</i> That, notwithstanding section 1605 of the Atomic Energy Act of 1954, as amended (42 U.S.C. 2297e–4), USEC shall transfer to the Department such sums as are necessary in fiscal year 1998 for AVLIS demonstration and development activities to be derived only from one or more of the following sources: savings from adjustments in the level of inventories; savings from reductions in capital and operating costs; savings from reductions in power costs including savings from increased use of off-peak power; or savings from adjustments in the amount of purchases:</proviso> <proviso><i>Provided further,</i> That the savings from such reductions and adjustments in the amounts paid by USEC in fiscal year 1998 shall be sufficient to fund the aforementioned AVLIS demonstration and development activities such that the net spending authority and resulting outlays for these activities shall not exceed $0 in fiscal year 1998 and thereafter:</proviso> <proviso><i>Provided further,</i> That, prior to transferring funds to the Department for AVLIS activities pursuant to this section, the Chief Financial Officer of USEC shall submit to the Committees on Appropriations of the House of Representatives and Senate an itemized listing of the amounts of the reductions made pursuant to this section to <sidenote><p class="indent0 firstIndent0 fontsize8">Records.</p></sidenote>fund the proposed transfer:</proviso> <proviso><i>Provided further,</i> That, by November 1, 1998, the Chief Financial Officer of USEC shall submit to the Committees on Appropriations of the House of Representatives and Senate an itemized listing of the amounts of the reductions made <sidenote><p class="indent0 firstIndent0 fontsize8">Expiration date.</p></sidenote>pursuant to this section for fiscal year 1998:</proviso> <proviso><i>Provided further,</i> That the provisions in this section related to the transfer to and use by the Department of funds for AVLIS demonstration and development activities shall expire as of the privatization date for USEC, as defined in section 3102 of the USEC Privatization Act (42 U.S.C. 2297h), and the total amount obligated by the Department pursuant to this section for AVLIS demonstration and development activities shall not exceed $60,000,000.</proviso></content> </section> <section> <num value="510"><inline class="smallCaps">Sec</inline>. 510.</num> <subsection class="inline"><num value="a">(a)</num> <content>None of the funds appropriated or otherwise made available by this Act may be used to determine the final point of discharge for the interceptor drain for the San Luis Unit until development by the Secretary of the Interior and the State of California of a plan, which shall conform to the water quality standards of the State of California as approved by the Administrator of the Environmental Protection Agency, to minimize any detrimental effect of the San Luis drainage waters.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>The costs of the Kesterson Reservoir Cleanup Program and the costs of the San Joaquin Valley Drainage Program shall be classified by the Secretary of the Interior as reimbursable or nonreimbursable and collected until fully repaid pursuant to the “Cleanup Program—Alternative Repayment Plan” and the “SJVDP—Alternative Repayment Plan” described in the report entitled “Repayment Report, Kesterson Reservoir Cleanup Program and San Joaquin Valley Drainage Program, February 1995”, prepared by the Department of the Interior, Bureau of Reclamation. Any future obligations of funds by the United States relating to, or providing for, drainage service or drainage studies for the San Luis Unit shall be fully reimbursable by San Luis Unit beneficiaries of such service or studies pursuant to Federal Reclamation law.<page identifier="/us/stat/111/1341">111 STAT. 1341</page></content> </subsection> </section> <section> <num value="511">Sec. 511.</num> <heading><inline class="smallCaps">Maintenance of Security at the Gaseous Diffusion Plants</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8">Kentucky.</p><p class="indent0 firstIndent0 fontsize8">Ohio.</p></sidenote><content class="inline">Section 3107 of the USEC Privatization Act (42 U.S.C. 2297h–5) is amended by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Maintenance of Security</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>With respect to the Paducah Gaseous Diffusion Plant, Kentucky, and the Portsmouth Gaseous Diffusion Plant, Ohio, the guidelines relating to the authority of the Department of Energy’s contractors (including any Federal agency, or private entity operating a gaseous diffusion plant under a contract or lease with the Department of Energy) and any subcontractor (at any tier) to carry firearms and make arrests in providing security at Federal installations, issued under section 161k. of the Atomic Energy Act of 1954 (42 U.S.C. 2201k.) shall require, at a minimum, the presence of an adequate number of security guards carrying sidearms at all times to ensure maintenance of security at the gaseous diffusion plants (whether a gaseous diffusion plant is operated directly by a Federal agency or by a private entity under a contract or lease with a Federal agency).”.</content></paragraph> </subsection> </quotedContent> </content></section> <section> <num value="512">Sec. 512.</num> <content class="inline"><p class="indent0 fontsize10">None of the funds made available in this or any other Act may be used to restart the High Flux Beam Reactor.</p> <p class="indent0 fontsize10">This Act may be cited as the “<shortTitle role="act">Energy and Water Development Appropriations Act, 1998</shortTitle>”.</p> </content></section> Approved October 13, 1997.
LEGISLATIVE HISTORY—H.R. 2203 (S. 1004): HOUSE REPORTS: Nos. 105–90 (Comm. on Appropriations) and 105–271 (Comm. of Conference). SENATE REPORTS: No. 105–44 accompanying S. 1004 (Comm. on Appropriations). CONGRESSIONAL RECORD, Vol. 143 (1997):

July 24, 25, considered and passed House.

July 28, considered and passed Senate, amended, in lieu of S. 1004.

Sept. 30, House and Senate agreed to conference report.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):

Oct. 13, Presidential statement.

Oct. 17, President’s special message on line item veto.

 FEDERAL REGISTER, Vol. 62 (1997):

Oct. 20, Cancellation of items pursuant to the Line Item Veto Act.

 Public Law 105–63: To designate the United States courthouse at 500 State Avenue in Kansas City, Kansas, as the “Robert J. Dole United States Courthouse”. Public Law63 Public Law 105–63 111 Stat. 1342 1997-10-22 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1342 Public Law105–63 105th Congress
An Act To designate the United States courthouse at 500 State Avenue in Kansas City, Kansas, as the “Robert J. Dole United States Courthouse”.

Oct. 22, 1997

[S. 1000]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. DESIGNATION OF ROBERT J. DOLE UNITED STATES COURTHOUSE. The United States courthouse at 500 State Avenue in Kansas City, Kansas, shall be known and designated as the “Robert J. Dole United States Courthouse”.
SEC. 2. REFERENCES. Any reference in a law, map, regulation, document, paper, or other record of the United States to the United States courthouse referred to in section 1 shall be deemed to be a reference to the “Robert J. Dole United States Courthouse”.
Approved October 22, 1997.
LEGISLATIVE HISTORY—S. 1000: CONGRESSIONAL RECORD, Vol. 143 (1997):

July 25, considered and passed Senate.

Sept. 23, considered and passed House.

 Public Law 105–64: Making further continuing appropriations for the fiscal year 1998, and for other purposes. Public Law64 Public Law 105–64 111 Stat. 1343 1997-10-23 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1343 Public Law105–64 105th Congress
Joint Resolution Making further continuing appropriations for the fiscal year 1998, and for other purposes.

Oct. 23, 1997

[H.J Res. 97]

 Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,
That section 106(3) of Public Law 105–46 is amended by striking “October 23, 1997”

Ante, p. 1156.

 and inserting in lieu thereof “November 7, 1997”, and each provision amended by sections 118, 122, and 123 of such public law shall

Ante, p. 1157, 1158.

 be applied as if “November 7, 1997” was substituted for “October 23, 1997”.
Approved October 23, 1997.
LEGISLATIVE HISTORY—H.J. Res. 97: CONGRESSIONAL RECORD. Vol 143 11997):

Oct. 22, considered and passed House; considered in Senate.

Oct. 23. considered and passed Senate.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol 33 (1997):

Oct. 23, Presidential statement.

 Public Law 105–65: Making appropriations for the Departments of Veterans Affairs and Housing and Urban Development, and for sundry independent agencies, commissions, corporations, and offices for the fiscal year ending September 30, 1998, and for other purposes. Public Law65 Public Law 105–65 111 Stat. 1344 1997-10-27 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1344

*Note: This law contains items that were cancelled by the President pursuant to the Line Item Veto Act. For more information, see the Federal Register entry under “LEGISLATIVE HISTORY” at the end of this law.

 Public Law105–65 105th Congress
An Act Making appropriations for the Departments of Veterans Affairs and Housing and Urban Development, and for sundry independent agencies, commissions, corporations, and offices for the fiscal year ending September 30, 1998, and for other purposes.

Oct. 27, 1997

[H.R. 2158]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.
That the following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the Departments of Veterans Affairs and Housing and Urban Development, and for sundry independent agencies, commissions, corporations, and offices for the fiscal year ending September 30, 1998, and for other purposes, namely:
<num value="I">TITLE I</num> <heading>DEPARTMENT OF VETERANS AFFAIRS</heading> <appropriations level="intermediate"> <heading>Veterans Benefits Administration</heading> <appropriations level="small"> <heading>compensation and pensions</heading> <subheading>(including transfers of funds)</subheading> <content>For the payment of compensation benefits to or on behalf of veterans and a pilot program for disability examinations as authorized by law (38 U.S.C. 107, chapters 11, 13, 18, 51, 53, 55, and 61); pension benefits to or on behalf of veterans as authorized by law (38 U.S.C. chapters 15, 51, 53, 55, and 61; 92 Stat. 2508); and burial benefits, emergency and other officers’ retirement pay, adjusted-service credits and certificates, payment of premiums due on commercial life insurance policies guaranteed under the provisions of Article IV of the Soldiers’ and Sailors’ Civil Relief Act of 1940, as amended, and for other benefits as authorized by law (38 U.S.C. 107, 1312, 1977, and 2106, chapters 23, 51, 53, 55, and 61; 50 U.S.C. App. 540–548; 43 Stat. 122, 123; 45 Stat. 735; 76 Stat. 1198); $19,932,997,000, to remain available until expended: <proviso><i>Provided,</i> That not to exceed $26,380,000 of the amount appropriated shall be reimbursed to “General operating expenses” and “Medical care” for necessary expenses in implementing those provisions authorized in the Omnibus Budget Reconciliation Act of 1990, and in the Veterans’ Benefits Act of 1992 (38 U.S.C. chapters 51, 53, and 55), the funding source for which is specifically provided as the “Compensation and pensions” appropriation:</proviso> <proviso><i>Provided further,</i> That such sums as may be earned on an actual qualifying patient basis, shall be reimbursed to “Medical facilities revolving fund” to augment the funding of individual medical facilities for <page identifier="/us/stat/111/1345">111 STAT. 1345</page>nursing home care provided to pensioners as authorized by the Veterans’ Benefits Act of 1992 (38 U.S.C. chapter 55).</proviso></content> </appropriations> <appropriations level="small"> <heading>readjustment benefits</heading> <content>For the payment of readjustment and rehabilitation benefits to or on behalf of veterans as authorized by 38 U.S.C. chapters 21, 30, 31, 34, 35, 36, 39, 51, 53, 55, and 61, $1,366,000,000, to remain available until expended: <proviso><i>Provided,</i> That funds shall be available to pay any court order, court award or any compromise settlement arising from litigation involving the vocational training program authorized by section 18 of Public Law 98–77, as amended.</proviso></content> </appropriations> <appropriations level="small"> <heading>veterans insurance and indemnities</heading> <content>For military and naval insurance, national service life insurance, servicemen’s indemnities, service-disabled veterans insurance, and veterans mortgage life insurance as authorized by 38 U.S.C. chapter 19; 70 Stat. 887; 72 Stat. 487, $51,360,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>veterans housing benefit program fund program account (including transfer of funds)</heading> <content><p class="indent0 fontsize10">For the cost of direct and guaranteed loans, such sums as may be necessary to carry out the program, as authorized by 38 U.S.C. chapter 37, as amended: <proviso><i>Provided,</i> That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974, as amended:</proviso> <proviso><i>Provided further,</i> That during fiscal year 1998, within the resources available, not to exceed $300,000 in gross obligations for direct loans are authorized for specially adapted housing loans:</proviso> <proviso><i>Provided further,</i> That during 1998 any moneys that would be otherwise deposited into or paid from the Loan Guaranty Revolving Fund, the Guaranty and Indemnity Fund, or the Direct Loan Revolving Fund shall be deposited into or paid from the Veterans Housing Benefit Program Fund:</proviso> <proviso><i>Provided further,</i> That any balances in the Loan Guaranty Revolving Fund, the Guaranty and Indemnity Fund, or the Direct Loan Revolving Fund on the effective date of this Act may be transferred to and merged with the Veterans Housing Benefit Program Fund.</proviso></p> <p class="indent0 fontsize10">In addition, for administrative expenses to carry out the direct and guaranteed loan programs, $160,437,000, which may be transferred to and merged with the appropriation for “General operating expenses”.</p> </content></appropriations> <appropriations level="small"> <heading>education loan fund program account</heading> <subheading>(including transfer of funds)</subheading> <content><p class="indent0 fontsize10">For the cost of direct loans, $1,000, as authorized by 38 U.S.C. 3698, as amended: <proviso><i>Provided,</i> That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974, as amended:</proviso> <proviso><i>Provided further,</i> That these funds are available to subsidize gross obligations for the principal amount of direct loans not to exceed $3,000.</proviso></p> <p class="indent0 fontsize10">In addition, for administrative expenses necessary to carry out the direct loan program, $200,000, which may be transferred <page identifier="/us/stat/111/1346">111 STAT. 1346</page>to and merged with the appropriation for “General operating expenses”.</p> </content></appropriations> <appropriations level="small"> <heading>vocational rehabilitation loans program account</heading> <subheading>(including transfer of funds)</subheading> <content><p class="indent0 fontsize10">For the cost of direct loans, $44,000, as authorized by 38 U.S.C. chapter 31, as amended: <proviso><i>Provided,</i> That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974, as amended:</proviso> <proviso><i>Provided further,</i> That these funds are available to subsidize gross obligations for the principal amount of direct loans not to exceed $2,278,000.</proviso></p> <p class="indent0 fontsize10">In addition, for administrative expenses necessary to carry out the direct loan program, $388,000, which may be transferred to and merged with the appropriation for “General operating expenses”.</p> </content></appropriations> <appropriations level="small"> <heading>native american veteran housing loan program account</heading> <subheading>(including transfer of funds)</subheading> <content>For administrative expenses to carry out the direct loan program authorized by 38 U.S.C. chapter 37, subchapter V, as amended, $515,000, which may be transferred to and merged with the appropriation for “General operating expenses”.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Veterans Health Administration</heading> <appropriations level="small"> <heading>medical care</heading> <subheading>(including transfer of funds)</subheading> <content><p class="indent0 fontsize10">For necessary expenses for the maintenance and operation of hospitals, nursing homes, and domiciliary facilities; for furnishing, as authorized by law, inpatient and outpatient care and treatment to beneficiaries of the Department of Veterans Affairs, including care and treatment in facilities not under the jurisdiction of the Department; and furnishing recreational facilities, supplies, and equipment; funeral, burial, and other expenses incidental thereto for beneficiaries receiving care in the Department; administrative expenses in support of planning, design, project management, real property acquisition and disposition, construction and renovation of any facility under the jurisdiction or for the use of the Department; oversight, engineering and architectural activities not charged to project cost; repairing, altering, improving or providing facilities in the several hospitals and homes under the jurisdiction of the Department, not otherwise provided for, either by contract or by the hire of temporary employees and purchase of materials; uniforms or allowances therefor, as authorized by 5 U.S.C. 5901–5902; aid to State homes as authorized by 38 U.S.C. 1741; administrative and legal expenses of the Department for collecting and recovering amounts owed the Department as authorized under 38 U.S.C. chapter 17, and the Federal Medical Care Recovery Act, 42 U.S.C. 2651 et seq.; and not to exceed $8,000,000 to fund cost comparison studies as referred to in 38 U.S.C. 8110(a)(5); $17,057,396,000, plus reimbursements: <proviso><i>Provided,</i> That of the funds made available under this heading, $570,000,000 is for the equipment and land and structures object classifications only, which <page identifier="/us/stat/111/1347">111 STAT. 1347</page>amount shall not become available for obligation until August 1, 1998, and shall remain available until September 30, 1999:</proviso> <proviso><i>Provided further,</i> That of the amount made available under this heading, not to exceed $5,000,000 shall be for a study on the cost-effectiveness of contracting with local hospitals in east central Florida for the provision of non-emergent inpatient health care needs of veterans.</proviso></p> <p class="indent0 fontsize10">In addition, in conformance with Public Law 105–33 establishing the Department of Veterans Affairs Medical Care Collections Fund, such sums as may be deposited to such Fund pursuant to 38 U.S.C. 1729A may be transferred to this account, to remain available until expended for the purposes of this account.</p> </content></appropriations> <appropriations level="small"> <heading>medical and prosthetic research</heading> <content>For necessary expenses in carrying out programs of medical and prosthetic research and development as authorized by 38 U.S.C. chapter 73, to remain available until September 30, 1999, $272,000,000, plus reimbursements.</content> </appropriations> <appropriations level="small"> <heading>medical administration and miscellaneous operating expenses</heading> <content>For necessary expenses in the administration of the medical, hospital, nursing home, domiciliary, construction, supply, and research activities, as authorized by law; administrative expenses in support of planning, design, project management, architectural, engineering, real property acquisition and disposition, construction and renovation of any facility under the jurisdiction or for the use of the Department of Veterans Affairs, including site acquisition; engineering and architectural activities not charged to project cost; and research and development in building construction technology; $59,860,000, plus reimbursements.</content> </appropriations> <appropriations level="small"> <heading>general post fund, national homes</heading> <subheading>(including transfer of funds)</subheading> <content><p class="indent0 fontsize10">For the cost of direct loans, $7,000, as authorized by Public Law 102–54, section 8, which shall be transferred from the “General post fund”: <proviso><i>Provided,</i> That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974, as amended:</proviso> <proviso><i>Provided further,</i> That these funds are available to subsidize gross obligations for the principal amount of direct loans not to exceed $70,000.</proviso></p> <p class="indent0 fontsize10">In addition, for administrative expenses to carry out the direct loan programs, $54,000, which shall be transferred from the “General post fund”, as authorized by Public Law 102–54, section 8.</p> </content></appropriations> </appropriations> <appropriations level="intermediate"> <heading>Departmental Administration</heading> <appropriations level="small"> <heading>general operating expenses</heading> <content>For necessary operating expenses of the Department of Veterans Affairs, not otherwise provided for, including uniforms or allowances therefor; not to exceed $25,000 for official reception and representation expenses; hire of passenger motor vehicles; and reimbursement of the General Services Administration for security guard services, and the Department of Defense for the cost of <page identifier="/us/stat/111/1348">111 STAT. 1348</page>overseas employee mail; $786,135,000: <proviso><i>Provided,</i> That funds under this heading shall be available to administer the Service Members Occupational Conversion and Training Act:</proviso> <proviso><i>Provided further,</i> That none of the funds made available under this heading may be used for the relocation of the loan guaranty divisions of the Department of Veterans Affairs Regional Office in St. Petersburg, Florida to the Department of Veterans Affairs Regional Office in Atlanta, Georgia.</proviso></content> </appropriations> <appropriations level="small"> <heading>national cemetery system</heading> <content>For necessary expenses for the maintenance and operation of the National Cemetery System, not otherwise provided for, including uniforms or allowances therefor; cemeterial expenses as authorized by law; purchase of three passenger motor vehicles for use in cemeterial operations; and hire of passenger motor vehicles, $84,183,000.</content> </appropriations> <appropriations level="small"> <heading>office of inspector general</heading> <content>For necessary expenses of the Office of Inspector General in carrying out the Inspector General Act of 1978, as amended, $31,013,000.</content> </appropriations> <appropriations level="small"> <heading>construction, major projects</heading> <content>For constructing, altering, extending and improving any of the facilities under the jurisdiction or for the use of the Department of Veterans Affairs, or for any of the purposes set forth in sections 316, 2404, 2406, 8102, 8103, 8106, 8108, 8109, 8110, and 8122 of title 38, United States Code, including planning, architectural and engineering services, maintenance or guarantee period services costs associated with equipment guarantees provided under the project, services of claims analysts, offsite utility and storm drainage system construction costs, and site acquisition, where the estimated cost of a project is $4,000,000 or more or where funds for a project were made available in a previous major project appropriation, $177,900,000, to remain available until expended: <proviso><i>Provided,</i> That the $32,100,000 provided under this heading in Public Law 104204 for the replacement hospital at Travis Air Force Base, Fairfield, California, shall not be obligated for that purpose but shall be available for any project approved by the Congress in the budgetary process:</proviso> <proviso><i>Provided further,</i> That except for advance planning of projects funded through the advance planning fund and the design of projects funded through the design fund, none of these funds shall be used for any project which has not been considered and <sidenote><p class="indent0 firstIndent0 fontsize8">Contracts.</p></sidenote>approved by the Congress in the budgetary process:</proviso> <proviso><i>Provided further,</i> That funds provided in this appropriation for fiscal year 1998, for each approved project shall be obligated: (1) by the awarding of a construction documents contract by September 30, 1998; and (2) by the awarding of a construction contract by September 30, <sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote>1999:</proviso> <proviso><i>Provided further,</i> That the Secretary shall promptly report in writing to the Committees on Appropriations any approved major construction project in which obligations are not incurred within the time limitations established above:</proviso> <proviso><i>Provided further,</i> That no funds from any other account except the “Parking revolving fund”, may be obligated for constructing, altering, extending, or improving a project which was approved in the budget process and funded <page identifier="/us/stat/111/1349">111 STAT. 1349</page>in this account until one year after substantial completion and beneficial occupancy by the Department of Veterans Affairs of the project or any part thereof with respect to that part only.</proviso></content> </appropriations> <appropriations level="small"> <heading>construction, minor projects</heading> <content>For constructing, altering, extending, and improving any of the facilities under the jurisdiction or for the use of the Department of Veterans Affairs, including planning, architectural and engineering services, maintenance or guarantee period services costs associated with equipment guarantees provided under the project, services of claims analysts, offsite utility and storm drainage system construction costs, and site acquisition, or for any of the purposes set forth in sections 316, 2404, 2406, 8102, 8103, 8106, 8108, 8109, 8110, and 8122 of title 38, United States Code, where the estimated cost of a project is less than $4,000,000; $175,000,000, to remain available until expended, along with unobligated balances of previous “Construction, minor projects” appropriations which are hereby made available for any project where the estimated cost is less than $4,000,000: <proviso><i>Provided,</i> That funds in this account shall be available for: (1) repairs to any of the nonmedical facilities under the jurisdiction or for the use of the Department which are necessary because of loss or damage caused by any natural disaster or catastrophe; and (2) temporary measures necessary to prevent or to minimize further loss by such causes.</proviso></content> </appropriations> <appropriations level="small"> <heading>parking revolving fund</heading> <content>For the parking revolving fund as authorized by 38 U.S.C. 8109, income from fees collected, to remain available until expended, which shall be available for all authorized expenses except operations and maintenance costs, which will be funded from “Medical care”.</content> </appropriations> <appropriations level="small"> <heading>grants for construction of state extended care facilities</heading> <content>For grants to assist States to acquire or construct State nursing home and domiciliary facilities and to remodel, modify or alter existing hospital, nursing home and domiciliary facilities in State homes, for furnishing care to veterans as authorized by 38 U.S.C. 8131–8137, $80,000,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>grants for the construction of state veteran cemeteries</heading> <content>For grants to aid States in establishing, expanding, or improving State veteran cemeteries as authorized by 38 U.S.C. 2408, $10,000,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>administrative provisions</heading> <subheading>(including transfer of funds)</subheading> <section> <num value="101"><inline class="smallCaps">Sec</inline>. 101.</num> <content class="inline">Any appropriation for fiscal year 1998 for “Compensation and pensions”, “Readjustment benefits”, and “Veterans insurance and indemnities” may be transferred to any other of the mentioned appropriations.</content> </section> <section> <num value="102"><inline class="smallCaps">Sec</inline>. 102.</num> <content class="inline">Appropriations available to the Department of Veterans Affairs for fiscal year 1998 for salaries and expenses shall be available for services authorized by 5 U.S.C. 3109.<page identifier="/us/stat/111/1350">111 STAT. 1350</page></content> </section> <section> <num value="103"><inline class="smallCaps">Sec</inline>. 103.</num> <content class="inline">No appropriations in this Act for the Department of Veterans Affairs (except the appropriations for “Construction, major projects”, “Construction, minor projects”, and the “Parking revolving fund”) shall be available for the purchase of any site for or toward the construction of any new hospital or home.</content> </section> <section> <num value="104"><inline class="smallCaps">Sec</inline>. 104.</num> <content class="inline">No appropriations in this Act for the Department of Veterans Affairs shall be available for hospitalization or examination of any persons (except beneficiaries entitled under the laws bestowing such benefits to veterans, and persons receiving such treatment under 5 U.S.C. 7901–7904 or 42 U.S.C. 5141–5204), unless reimbursement of cost is made to the “Medical care” account at such rates as may be fixed by the Secretary of Veterans Affairs.</content> </section> <section> <num value="105"><inline class="smallCaps">Sec</inline>. 105.</num> <content class="inline">Appropriations available to the Department of Veterans Affairs for fiscal year 1998 for “Compensation and pensions”, “Readjustment benefits”, and “Veterans insurance and indemnities” shall be available for payment of prior year accrued obligations required to be recorded by law against the corresponding prior year accounts within the last quarter of fiscal year 1997.</content> </section> <section> <num value="106"><inline class="smallCaps">Sec</inline>. 106.</num> <content class="inline">Appropriations accounts available to the Department of Veterans Affairs for fiscal year 1998 shall be available to pay prior year obligations of corresponding prior year appropriations accounts resulting from title X of the Competitive Equality Banking Act, Public Law 100–86, except that if such obligations are from trust fund accounts they shall be payable from “Compensation and pensions”.</content> </section> <section> <num value="107"><inline class="smallCaps">Sec</inline>. 107.</num> <content class="inline">Notwithstanding any other provision of law, during fiscal year 1998, the Secretary of Veterans Affairs shall, from the National Service Life Insurance Fund (38 U.S.C. 1920), the Veterans’ Special Life Insurance Fund (38 U.S.C. 1923), and the United States Government Life Insurance Fund (38 U.S.C. 1955), reimburse the “General operating expenses” account for the cost of administration of the insurance programs financed through those accounts: <proviso><i>Provided,</i> That reimbursement shall be made only from the surplus earnings accumulated in an insurance program in fiscal year 1998, that are available for dividends in that program after claims have been paid and actuarially determined reserves have been set aside:</proviso> <proviso><i>Provided further,</i> That if the cost of administration of an insurance program exceeds the amount of surplus earnings accumulated in that program, reimbursement shall be made only to the extent of such surplus earnings:</proviso> <proviso><i>Provided further,</i> That the Secretary shall determine the cost of administration for fiscal year 1998, which is properly allocable to the provision of each insurance program and to the provision of any total disability income insurance included in such insurance program.</proviso></content> </section> <section> <num value="108"><inline class="smallCaps">Sec</inline>. 108.</num> <content class="inline">Section 214(l)(1)(D) of the Immigration and Nationality Act (8 U.S.C. 1184(l)(1)(D)) (as added by section 220 of the Immigration and Nationality Technical Corrections Act of 1994 and redesignated as subsection (l) by section 671(a)(3)(A) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996) is amended by inserting before the period at the end the following: “, except that, in the case of a request by the Department of Veterans Affairs, the alien shall not be required to practice medicine in a geographic area designated by the Secretary”.</content> </section> <section> <num value="109"><inline class="smallCaps">Sec</inline>. 109.</num> <content class="inline">In accordance with section 1557 of title 31, United States Code, the following obligated balance shall be exempt from subchapter IV of chapter 15 of such title and shall remain available for expenditure without fiscal year limitation: Funds obligated by <page identifier="/us/stat/111/1351">111 STAT. 1351</page>the Department of Veterans Affairs for lease number 757–084B–001–91 from funds made available in the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1993 (Public Law 102–389) under the heading “Medical care”.</content> </section> </appropriations> </appropriations> <num value="II">TITLE II</num> <heading>DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT</heading> <appropriations level="intermediate"> <heading>Public and Indian Housing</heading> <appropriations level="small"> <heading>housing certificate fund</heading> <subheading>(including transfers of funds)</subheading> <content>For activities and assistance to prevent the involuntary displacement of low-income families, the elderly and the disabled because of the loss of affordable housing stock, expiration of subsidy contracts (other than contracts for which amounts are provided under another heading in this Act) or expiration of use restrictions, or other changes in housing assistance arrangements, and for other purposes, $9,373,000,000, to remain available until expended: <proviso><i>Provided,</i> That of the total amount provided under this heading, $8,180,000,000 shall be for assistance under the United States Housing Act of 1937 (42 U.S.C. 1437) for use in connection with expiring or terminating section 8 subsidy contracts, for enhanced vouchers as provided under the “Preserving Existing Housing Investment” account in the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997 (Public Law 104–204), and contracts entered into pursuant to section 441 of the Stewart B. McKinney Homeless Assistance Act:</proviso> <proviso><i>Provided further,</i> That the Secretary may determine not to apply section 8(o)(6)(B) of the Act to housing vouchers during fiscal year 1998:</proviso> <proviso><i>Provided further,</i> That of the total amount provided under this heading, $850,000,000 shall be for amendments to section 8 contracts other than contracts for projects developed under section 202 of the Housing Act of 1959, as amended:</proviso> <proviso><i>Provided further,</i> That of the total amount provided under this heading, $343,000,000 shall be for section 8 rental assistance under the United States Housing Act of 1937 including assistance to relocate residents of properties: (1) that are owned by the Secretary and being disposed of; or (2) that are discontinuing section 8 project-based assistance; for the conversion of section 23 projects to assistance under section 8; for funds to carry out the family unification program; and for the relocation of witnesses in connection with efforts to combat crime in public and assisted housing pursuant to a request from a law enforcement or prosecution agency:</proviso> <proviso><i>Provided further,</i> That of the total amount made available in the preceding proviso, $40,000,000 shall be made available to nonelderly disabled families affected by the designation of a public housing development under section 7 of such Act, the establishment of preferences in accordance with section 651 of the Housing and Community Development Act of 1992 (42 U.S.C. 13611), or the restriction of occupancy to elderly families in accordance with section 658 of such Act, and to the extent the Secretary determines that such amount is not needed to fund applications for such affected families, to other nonelderly disabled families:</proviso> <proviso><i>Provided further,</i> That the amount made available <page identifier="/us/stat/111/1352">111 STAT. 1352</page>under the fifth proviso under the heading “Prevention of Resident Displacement” in title II of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997, Public Law 104–204, shall also be made available to nonelderly disabled families affected by the restriction of occupancy to elderly families in accordance with section 658 of the Housing and Community Development Act of 1992:</proviso> <proviso><i>Provided further,</i> That to the extent the Secretary determines that the amount made available under the fifth proviso under the heading “Prevention of Resident Displacement” in title II of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997, Public Law 104204, is not needed to fund applications for affected families described in the fifth proviso, or in the preceding proviso under this heading in this Act, the amount not needed shall be made available to other nonelderly disabled families:</proviso> <proviso><i>Provided further,</i> That all balances, as of September 30, 1997, remaining in the “Annual Contributions for Assisted Housing” account and the “Prevention of Resident Displacement” account for use in connection with expiring or terminating section 8 subsidy contracts and for amendments to section 8 contracts other than contracts for projects developed under section 202 of the Housing Act of 1959, as amended, shall be transferred to and merged with the amounts provided for those purposes under this heading.</proviso></content> </appropriations> <appropriations level="small"> <heading>section 8 reserve preservation account</heading> <content>The amounts recaptured during fiscal year 1998 that were heretofore made available to public housing agencies for tenantbased assistance under the section 8 existing housing certificate and housing voucher programs from the Annual Contributions for Assisted Housing account shall be collected in the account under this heading, for use as provided for under this heading, as set forth under the Annual Contributions for Assisted Housing heading in chapter 11 of Public Law 105–18, approved June 12, 1997.</content> </appropriations> <appropriations level="small"> <heading>annual contributions for assisted housing</heading> <subheading>(including rescission and transfer of funds)</subheading> <content><p class="indent0 fontsize10">Notwithstanding any other provision of law, of the amounts recaptured under this heading during fiscal year 1998 and prior years, $550,000,000, heretofore maintained as section 8 reserves made available to housing agencies for tenant-based assistance under the section 8 existing housing certificate and housing voucher programs, are rescinded.</p> <p class="indent0 fontsize10">All balances outstanding as of September 30, 1997, in the Preserving Existing Housing Investment Account for the Preservation program shall be transferred to and merged with the amounts previously provided for those purposes under this heading.</p> </content></appropriations> <appropriations level="small"> <heading>public housing capital fund</heading> <subheading>(including transfers of funds)</subheading> <content>For the Public Housing Capital Fund Program for modernization of existing public housing projects as authorized under section 14 of the United States Housing Act of 1937, as amended (42 U.S.C. 1437), $2,500,000,000, to remain available until expended: <page identifier="/us/stat/111/1353">111 STAT. 1353</page><proviso><i>Provided,</i> That of the total amount, $30,000,000 shall be for carrying out activities under section 6(j) of such Act and technical assistance for the inspection of public housing units, contract expertise, and training and technical assistance directly or indirectly, under grants, contracts, or cooperative agreements, to assist in the oversight and management of public housing (whether or not the housing is being modernized with assistance under this proviso) or tenant-based assistance, including, but not limited to, an annual resident survey, data collection and analysis, training and technical assistance by or to officials and employees of the Department and of public housing agencies and to residents in connection with the public housing program and for lease adjustments to section 23 projects:</proviso> <proviso><i>Provided further,</i> That of the amount available under this heading, up to $5,000,000 shall be for the Tenant Opportunity Program:</proviso> <proviso><i>Provided further,</i> That all balances, as of September 30, 1997, of funds heretofore provided (other than for Indian families) for the development or acquisition costs of public housing, for modernization of existing public housing projects, for public housing amendments, for public housing modernization and development technical assistance, for lease adjustments under the section 23 program, and for the Family Investment Centers program, shall be transferred to and merged with amounts made available under this heading.</proviso></content> </appropriations> <appropriations level="small"> <heading>public housing operating fund</heading> <subheading>(including transfer of funds)</subheading> <content>For payments to public housing agencies for operating subsidies for low-income housing projects as authorized by section 9 of the United States Housing Act of 1937, as amended (42 U.S.C. 1437g), $2,900,000,000, to remain available until expended: <proviso><i>Provided,</i> That all balances outstanding, as of September 30, 1997, of funds heretofore provided (other than for Indian families) for payments to public housing agencies for operating subsidies for low-income housing projects, shall be transferred to and merged with amounts made available under this heading.</proviso></content> </appropriations> <appropriations level="small"> <heading>drug elimination grants for low-income housing (including transfer of funds)</heading> <content>For grants to public housing agencies and tribally designated housing entities for use in eliminating crime in public housing projects authorized by 42 U.S.C. 11901–11908, for grants for federally assisted low-income housing authorized by 42 U.S.C. 11909, and for drug information clearinghouse services authorized by 42 U.S.C. 11921–11925, $310,000,000, to remain available until expended, of which $10,000,000 shall be for grants, technical assistance, contracts and other assistance, training, and program assessment and execution for or on behalf of public housing agencies, resident organizations, and Indian tribes and their tribally designated housing entities (including the cost of necessary travel for participants in such training); $10,000,000 shall be used in connection with efforts to combat violent crime in public and assisted housing under the Operation Safe Home program administered by the Inspector General of the Department of Housing and Urban Development; $10,000,000 shall be provided to the Office of Inspector General for Operation Safe Home; and $20,000,000 <page identifier="/us/stat/111/1354">111 STAT. 1354</page>shall be available for a program named the New Approach Anti-Drug program which will provide competitive grants to entities managing or operating public housing developments, federally assisted multifamily housing developments, or other multifamily housing developments for low-income families supported by non-Federal governmental entities or similar housing developments supported by nonprofit private sources in order to provide or augment security (including personnel costs), to assist in the investigation and/or prosecution of drug-related criminal activity in and around such developments, and to provide assistance for the development of capital improvements at such developments directly relating <sidenote><p class="indent0 firstIndent0 fontsize8">Grants.</p></sidenote>to the security of such developments: <proviso><i>Provided,</i> That grants for the New Approach Anti-Drug program shall be made on a competitive basis as specified in section 102 of the Department of Housing and Urban Development Reform Act of 1989:</proviso> <proviso><i>Provided further,</i> That the term “drug-related crime”, as defined in 42 U.S.C. 11905(2), shall also include other types of crime as determined by the Secretary:</proviso> <proviso><i>Provided further,</i> That, notwithstanding section 5130(c) of the Anti-Drug Abuse Act of 1988 (42 U.S.C. 11909(c)), the Secretary may determine not to use any such funds to provide public housing youth sports grants.</proviso></content> </appropriations> <appropriations level="small"> <heading>revitalization of severely distressed public housing (hope vi)</heading> <content>For grants to public housing agencies for assisting in the demolition of obsolete public housing projects or portions thereof, the revitalization (where appropriate) of sites (including remaining public housing units) on which such projects are located, replacement housing which will avoid or lessen concentrations of very low-income families, and tenant-based assistance in accordance with section 8 of the United States Housing Act of 1937; and for providing replacement housing and assisting tenants displaced by the demolition, $550,000,000, to remain available until expended, of which the Secretary may use up to $10,000,000 for technical assistance and contract expertise, to be provided directly or indirectly by grants, contracts or cooperative agreements, including training and cost of necessary travel for participants in such training, by or to officials and employees of the Department and of public housing agencies and to residents: <proviso><i>Provided,</i> That of the amount made available under this heading, $26,000,000 shall be made available, including up to $10,000,000 for Heritage House in Kansas City, Missouri, for the demolition of obsolete elderly public housing projects and the replacement, where appropriate, and revitalization of the elderly public housing as new communities for the elderly designed to meet the special needs and physical requirements of the elderly:</proviso> <proviso><i>Provided further,</i> That no funds appropriated under this heading shall be used for any purpose that is not provided for herein, in the United States Housing Act of 1937, in the Appropriations Acts for the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies, for the fiscal years 1993, 1994, 1995, and 1997, and the Omnibus Consolidated Rescissions and Appropriations Act of 1996:</proviso> <proviso><i>Provided further,</i> That none of such funds shall be used directly or indirectly by granting competitive advantage in awards to settle litigation or pay judgments, unless expressly permitted herein.</proviso><page identifier="/us/stat/111/1355">111 STAT. 1355</page></content> </appropriations> <appropriations level="small"> <heading>native american housing block grants (including transfers of funds)</heading> <content>For the Native American Housing Block Grants program, as authorized under title I of the Native American Housing Assistance and Self-Determination Act of 1996 (Public Law 104–330), $600,000,000, to remain available until expended, of which $5,000,000 shall be used to support the inspection of Indian housing units, contract expertise, training, and technical assistance in the oversight and management of Indian housing and tenant-based assistance, including up to $200,000 for related travel: <proviso><i>Provided,</i> That of the amount provided under this heading, $5,000,000 shall be made available for the cost of guaranteed notes and other obligations, as authorized by title VI of the Native American Housing Assistance and Self-Determination Act of 1996:</proviso> <proviso><i>Provided further,</i> That such costs, including the costs of modifying such notes and other obligations, shall be as defined in section 502 of the Congressional Budget Act of 1974, as amended:</proviso> <proviso><i>Provided further,</i> That these funds are available to subsidize the total principal amount of any notes and other obligations, any part of which is to be guaranteed, not to exceed $217,000,000:</proviso> <proviso><i>Provided further,</i> That the funds made available in the first proviso are for a demonstration on ways to enhance economic growth, to increase access to private capital, and to encourage the investment and participation of traditional financial institutions in tribal and other Native American areas:</proviso> <proviso><i>Provided further,</i> That all balances outstanding as of September 30, 1997, previously appropriated under the headings “Annual Contributions for Assisted Housing”, “Development of Additional New Subsidized Housing”, “Preserving Existing Housing Investment”, “HOME Investment Partnerships Program”, “Emergency Shelter Grants Program”, and “Homeless Assistance Funds”, identified for Indian Housing Authorities and other agencies primarily serving Indians or Indian areas, shall be transferred to and merged with amounts made available under this heading.</proviso></content> </appropriations> <appropriations level="small"> <heading>indian housing loan guarantee fund program account</heading> <content>For the cost of guaranteed loans, as authorized by section 184 of the Housing and Community Development Act of 1992 (106 Stat. 3739), $5,000,000, to remain available until expended: <proviso><i>Provided,</i> That such costs, including the costs of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974, as amended:</proviso> <proviso><i>Provided further,</i> That these funds are available to subsidize total loan principal, any part of which is to be guaranteed, not to exceed $73,800,000.</proviso></content> </appropriations> <appropriations level="small"> <heading>capital grants/capital loans preservation account</heading> <content>At the discretion of the Secretary, to reimburse owners, nonprofits, and tenant groups for which plans of action were submitted with regard to eligible properties under the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (LIHPRHA) or the Emergency Low Income Housing Preservation Act of 1987 (ELIHPA) prior to the effective date of this Act, but were not executed for lack of available funds, with such reimbursement available only for documented costs directly applicable to the preparation of the plan of action or any purchase agreement as determined <page identifier="/us/stat/111/1356">111 STAT. 1356</page>by the Secretary, on terms and conditions to be established by the Secretary, $10,000,000 shall be made available.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Community Planning and Development</heading> <appropriations level="small"> <heading>housing opportunities for persons with aids</heading> <content>For carrying out the Housing Opportunities for Persons with AIDS program, as authorized by the AIDS Housing Opportunity Act (42 U.S.C. 12901), $204,000,000, to remain available until expended: <proviso><i>Provided,</i> That of the amount made available under this heading for non-formula allocation, the Secretary may designate, on a noncompetitive basis, one or more nonprofit organizations that provide meals delivered to homebound persons with acquired immunodeficiency syndrome or a related disease to receive grants, not exceeding $250,000 for any grant, and the Secretary shall assess the efficacy of providing such assistance to such persons.</proviso></content> </appropriations> <appropriations level="small"> <heading>community development block grants</heading> <subheading>(including transfers of funds)</subheading> <content><p class="indent0 fontsize10">For grants to States and units of general local government and for related expenses, not otherwise provided for, to carry out a community development grants program as authorized by title I of the Housing and Community Development Act of 1974, as amended (the “Act” herein) (42 U.S.C. 5301), $4,675,000,000, to remain available until September 30, 2000: <proviso><i>Provided,</i> That $67,000,000 shall be for grants to Indian tribes notwithstanding section 106(a)(1) of such Act; $2,100,000 shall be available as a grant to the Housing Assistance Council; $1,500,000 shall be available as a grant to the National American Indian Housing Council; $32,000,000 shall be for grants pursuant to section 107 of such Act; $7,500,000 shall be for the Community Outreach Partnership program; $16,700,000 shall be for grants pursuant to section 11 of the Housing Opportunity Program Extension Act of 1996 (Public Law 104–120):</proviso> <proviso><i>Provided further,</i> That not to exceed 20 percent of any grant made with funds appropriated herein (other than a grant made available under the preceding proviso to the Housing Assistance Council or the National American Indian Housing Council, or a grant using funds under section 107(b)(3) of the Housing and Community Development Act of 1974, as amended) shall be expended for “Planning and Management Development” and “Administration” as defined in regulations promulgated by the Department.</proviso></p> <p class="indent0 fontsize10">Of the amount made available under this heading, $15,000,000 shall be made available for “Capacity Building for Community Development and Affordable Housing”, as authorized by section 4 of the HUD Demonstration Act of 1993 (Public Law 103–120), as in effect immediately before June 12, 1997, with not less than $5,000,000 of the funding to be used in rural areas, including tribal areas.</p> <p class="indent0 fontsize10">Of the amount provided under this heading, the Secretary of Housing and Urban Development may use up to $55,000,000 for a public and assisted housing self-sufficiency program, of which up to $5,000,000 may be used for the Moving to Work Demonstration, and at least $7,000,000 shall be used for grants for service <page identifier="/us/stat/111/1357">111 STAT. 1357</page>coordinators and congregate services for the elderly and disabled: <proviso><i>Provided,</i> That for self-sufficiency activities, the Secretary may make grants to public housing agencies (including Indian tribes and their tribally designated housing entities), nonprofit corporations, and other appropriate entities for a supportive services program to assist residents of public and assisted housing, former residents of such housing receiving tenant-based assistance under section 8 of such Act (42 U.S.C. 1437f), and other low-income families and individuals:</proviso> <proviso><i>Provided further,</i> That the program shall provide supportive services, principally for the benefit of public housing residents, to the elderly and the disabled, and to families with children where the head of household would benefit from the receipt of supportive services and is working, seeking work, or is preparing for work by participating in job training or educational programs:</proviso> <proviso><i>Provided further,</i> That the supportive services may include congregate services for the elderly and disabled, service coordinators, and coordinated education, training, and other supportive services, including academic skills training, job search assistance, assistance related to retaining employment, vocational and entrepreneurship development and support programs, transportation, and child care:</proviso> <proviso><i>Provided further,</i> That the Secretary shall require applications to demonstrate firm commitments of funding or services from other sources:</proviso> <proviso><i>Provided further,</i> That the Secretary shall select public and Indian housing agencies to receive assistance under this heading on a competitive basis, taking into account the quality of the proposed program, including any innovative approaches, the extent of the proposed coordination of supportive services, the extent of commitments of funding or services from other sources, the extent to which the proposed program includes reasonably achievable, quantifiable goals for measuring performance under the program over a three-year period, the extent of success an agency has had in carrying out other comparable initiatives, and other appropriate criteria established by the Secretary (except that this proviso shall not apply to renewal of grants for service coordinators and congregate services for the elderly and disabled).</proviso></p> <p class="indent0 fontsize10">Of the amount made available under this heading, notwithstanding any other provision of law, $35,000,000 shall be available for YouthBuild program activities authorized by subtitle D of title IV of the Cranston-Gonzalez National Affordable Housing Act, as amended, and such activities shall be an eligible activity with respect to any funds made available under this heading. Local YouthBuild programs that demonstrate an ability to leverage private and nonprofit funding shall be given a priority for YouthBuild funding.</p> <p class="indent0 fontsize10">Of the amount made available under this heading, $25,000,000 shall be available for the Secretary, in consultation with the Secretary of Agriculture, to make grants, not to exceed $4,000,000 each, for rural and tribal areas, including at least one Native American area in Alaska and one rural area in each of the States of Iowa and Missouri, to test comprehensive approaches to developing a job base through economic development, developing affordable low- and moderate-income rental and homeownership housing, and increasing the investment of both private and nonprofit capital.</p> <p class="indent0 fontsize10">Of the amount made available under this heading, $138,000,000 shall be available for the Economic Development Initiative (EDI) to finance a variety of efforts, including $100,000,000 for making <page identifier="/us/stat/111/1358">111 STAT. 1358</page>grants for targeted economic investments in accordance with the terms and conditions specified for such grants in the conference report and the joint explanatory statement of the committee of conference accompanying this Act.</p> <p class="indent0 fontsize10">Of the amount made available under this heading, notwithstanding any other provision of law, $60,000,000 shall be available for the lead-based paint hazard reduction program as authorized under sections 1011 and 1053 of the Residential Lead-Based Hazard Reduction Act of 1992.</p> <p class="indent0 fontsize10">Of the amount made available under this heading, $25,000,000, including $15,000,000 for the County of San Bernardino, California, shall be used for neighborhood initiatives that are utilized to improve the conditions of distressed and blighted areas and neighborhoods, and to determine whether housing benefits can be integrated more effectively with welfare reform initiatives.</p> <p class="indent0 fontsize10">For the cost of guaranteed loans, $29,000,000, as authorized by section 108 of the Housing and Community Development Act of 1974: <proviso><i>Provided,</i> That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974, as amended:</proviso> <proviso><i>Provided further,</i> That these funds are available to subsidize total loan principal, any part of which is to be guaranteed, not to exceed $1,261,000,000, notwithstanding any aggregate limitation on outstanding obligations guaranteed in section 108(k) of the Housing and Community Development Act of 1974. In addition, for administrative expenses to carry out the guaranteed loan program, $1,000,000, which shall be transferred to and merged with the appropriation for departmental salaries and expenses.</proviso></p> <p class="indent0 fontsize10">Of the $500,000,000 made available under the heading “Community Development Block Grants Fund” in the 1997 Emergency Supplemental Appropriations Act for Recovery from Natural Disasters, and for Overseas Peacekeeping Efforts, Including Those in Bosnia (Public Law 105–18), not more than $3,500,000 shall be made available for the non-Federal cost-share for a levee project at Devils Lake, North Dakota: <proviso><i>Provided,</i> That the Secretary of Housing and Urban Development shall provide the State of North Dakota with a waiver to allow the use of its annual Community Development Block Grant allocation for use in funding the non-Federal cost-share for a levee project at Devils Lake, North Dakota:</proviso> <proviso><i>Provided further,</i> That notwithstanding any other provision of law, the Secretary is prohibited from providing waivers, other than those provided herein, for funds in excess of $100,000 in emergency Community Development Block Grants funds for the non-Federal cost-share of projects funded by the Secretary of the Army through the Corps of Engineers.</proviso></p> </content></appropriations> <appropriations level="small"> <heading>brownfields redevelopment</heading> <content>For Economic Development Grants, as authorized by section 108(q) of the Housing and Community Development Act of 1974, as amended, for Brownfields redevelopment projects, $25,000,000, to remain available until expended: <proviso><i>Provided,</i> That the Secretary of Housing and Urban Development shall make these grants available on a competitive basis as specified in section 102 of the Department of Housing and Urban Development Reform Act of 1989.</proviso><page identifier="/us/stat/111/1359">111 STAT. 1359</page></content> </appropriations> <appropriations level="small"> <heading>empowerment zones and enterprise communities</heading> <content>For planning grants, technical assistance, contracts and other assistance, and training in connection with Empowerment Zones and Enterprise Communities, designated by the Secretary of Housing and Urban Development, to continue efforts to stimulate economic opportunity in America’s distressed communities, $5,000,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>home investment partnerships program</heading> <content>For the HOME investment partnerships program, as authorized under title II of the Cranston-Gonzalez National Affordable Housing Act (Public Law 101–625), as amended, $1,500,000,000, to remain available until expended: <proviso><i>Provided,</i> That up to $7,000,000 shall be available for the development and operation of integrated community development management information systems:</proviso> <proviso><i>Provided further,</i> That $20,000,000 shall be available for Housing Counseling under section 106 of the Housing and Urban Development Act of 1968:</proviso> <proviso><i>Provided further,</i> That up to $10,000,000 shall be available to carry out a demonstration program in which the Secretary makes grants to up to three organizations exempt from Federal taxation under section 501(c)(3) of the Internal Revenue Code, selected on a competitive basis, to demonstrate methods of expanding homeownership opportunities for low-income borrowers through expanding the secondary market for non-conforming home mortgage loans to low-wealth borrowers:</proviso> <proviso><i>Provided further,</i> That grantees for such demonstration program shall have experience in working with lenders who make non-conforming loans to low-income borrowers, have experience in expanding the secondary market for such loans, have demonstrated success in carrying out such activities including raising non-Federal grants and capital on concessionary terms for the purpose of expanding the secondary market for loans in the previous two years in amounts equal to or exceeding the amount awarded to such organization under this paragraph, and have demonstrated the ability to provide data on the performance of such loans sufficient to allow for future analysis of the investment risk of such loans.</proviso></content> </appropriations> <appropriations level="small"> <heading>supportive housing program</heading> <subheading>(rescission)</subheading> <content>Of the funds made available under this heading in Public Law 102–389 and prior laws for the Supportive Housing Demonstration Program, as authorized by the Stewart B. McKinney Homeless Assistance Act, $6,000,000 of funds recaptured during fiscal year 1998 shall be rescinded.</content> </appropriations> <appropriations level="small"> <heading>shelter plus care</heading> <subheading>(rescission)</subheading> <content>Of the funds made available under this heading in Public Law 102–389 and prior laws for the Shelter Plus Care program, as authorized by the Stewart B. McKinney Homeless Assistance Act, $4,000,000 of funds recaptured during fiscal year 1998 shall be rescinded.<page identifier="/us/stat/111/1360">111 STAT. 1360</page></content> </appropriations> <appropriations level="small"> <heading>homeless assistance grants</heading> <content>For the emergency shelter grants program (as authorized under subtitle B of title IV of the Stewart B. McKinney Homeless Assistance Act, as amended); the supportive housing program (as authorized under subtitle C of title IV of such Act); the section 8 moderate rehabilitation single room occupancy program (as authorized under the United States Housing Act of 1937, as amended) to assist homeless individuals pursuant to section 441 of the Stewart B. McKinney Homeless Assistance Act; and the shelter plus care program (as authorized under subtitle F of title IV of such Act), $823,000,000, to remain available until expended.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Housing Programs</heading> <appropriations level="small"> <heading>housing for special populations</heading> <subheading>(including transfers of funds)</subheading> <content>For assistance for the purchase, construction, acquisition, or development of additional public and subsidized housing units for low-income families under the United States Housing Act of 1937, as amended (42 U.S.C. 1437), not otherwise provided for, $839,000,000, to remain available until expended: <proviso><i>Provided,</i> That of the total amount provided under this heading, $645,000,000 shall be for capital advances, including amendments to capital advance contracts, for housing for the elderly, as authorized by section 202 of the Housing Act of 1959, as amended, and for project rental assistance, and amendments to contracts for project rental assistance, for the elderly under section 202(c)(2) of the Housing Act of 1959, and for supportive services associated with the housing; and $194,000,000 shall be for capital advances, including amendments to capital advance contracts, for supportive housing for persons with disabilities, as authorized by section 811 of the Cranston-Gonzalez National Affordable Housing Act, for project rental assistance, for amendments to contracts for project rental assistance, and supportive services associated with the housing for persons with disabilities as authorized by section 811 of such Act:</proviso> <proviso><i>Provided further,</i> That the Secretary may designate up to 25 percent of the amounts earmarked under this paragraph for section 811 of such Act for tenant-based assistance, as authorized under that section, including such authority as may be waived under the next proviso, which assistance is five years in duration:</proviso> <proviso><i>Provided further,</i> That the Secretary may waive any provision of section 202 of the Housing Act of 1959 and section 811 of the Cranston-Gonzalez National Affordable Housing Act (including the provisions governing the terms and conditions of project rental assistance and tenant-based assistance) that the Secretary determines is not necessary to achieve the objectives of these programs, or that otherwise impedes the ability to develop, operate or administer projects assisted under these programs, and may make provision for alternative conditions or terms where appropriate:</proviso> <proviso><i>Provided further,</i> That all balances, as of September 30, 1997, remaining in either the “Annual Contributions for Assisted Housing” account or the “Development of Additional New Subsidized Housing” account for capital advances, including amendments to capital advances, for housing for the elderly, as authorized by section 202 of the Housing Act of 1959, as amended, and for project rental assistance, <page identifier="/us/stat/111/1361">111 STAT. 1361</page>and amendments to contracts for project rental assistance, for supportive housing for the elderly, under section 202(c)(2) of such Act, shall be transferred to and merged with the amounts for those purposes under this heading; and, all balances, as of September 30, 1997, remaining in either the “Annual Contributions for Assisted Housing” account or the “Development of Additional New Subsidized Housing” account for capital advances, including amendments to capital advances, for supportive housing for persons with disabilities, as authorized by section 811 of the Cranston-Gonzalez National Affordable Housing Act, and for project rental assistance, and amendments to contracts for project rental assistance, for supportive housing for persons with disabilities, as authorized under section 811 of such Act, shall be transferred to and merged with the amounts for those purposes under this heading.</proviso></content> </appropriations> <appropriations level="small"> <heading>other assisted housing programs</heading> <heading>rental housing assistance</heading> <subheading>(rescission)</subheading> <content>The limitation otherwise applicable to the maximum payments that may be required in any fiscal year by all contracts entered into under section 236 of the National Housing Act (12 U.S.C. 1715z–1) is reduced in fiscal year 1998 by not more than $7,350,000 in uncommitted balances of authorizations provided for this purpose in appropriation Acts: <proviso><i>Provided,</i> That up to $125,000,000 of recaptured budget authority shall be canceled.</proviso></content> </appropriations> <appropriations level="small"> <heading>flexible subsidy fund</heading> <subheading>(transfer of funds)</subheading> <content>From the Rental Housing Assistance Fund, all uncommitted balances of excess rental charges as of September 30, 1997, and any collections made during fiscal year 1998, shall be transferred to the Flexible Subsidy Fund, as authorized by section 236(g) of the National Housing Act, as amended.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Federal Housing Administration</heading> <appropriations level="small"> <heading>fha—mutual mortgage insurance program account</heading> <subheading>(including transfers of funds)</subheading> <content><p class="indent0 fontsize10">During fiscal year 1998, commitments to guarantee loans to carry out the purposes of section 203(b) of the National Housing Act, as amended, shall not exceed a loan principal of $110,000,000,000.</p> <p class="indent0 fontsize10">During fiscal year 1998, obligations to make direct loans to carry out the purposes of section 204(g) of the National Housing Act, as amended, shall not exceed $200,000,000: <proviso><i>Provided,</i> That the foregoing amount shall be for loans to nonprofit and governmental entities in connection with sales of single family real properties owned by the Secretary and formerly insured under the Mutual Mortgage Insurance Fund.</proviso></p> <p class="indent0 fontsize10">For administrative expenses necessary to carry out the guaranteed and direct loan program, $338,421,000, to be derived from the FHA-mutual mortgage insurance guaranteed loans receipt <page identifier="/us/stat/111/1362">111 STAT. 1362</page>account, of which not to exceed $326,309,000 shall be transferred to the appropriation for departmental salaries and expenses; and of which not to exceed $12,112,000 shall be transferred to the appropriation for the Office of Inspector General.</p> </content></appropriations> <appropriations level="small"> <heading>fha—general and special risk program account</heading> <subheading>(including transfers of funds)</subheading> <content><p class="indent0 fontsize10">For the cost of guaranteed loans, as authorized by sections 238 and 519 of the National Housing Act (12 U.S.C. 1715z–3 and 1735c), including the cost of loan guarantee modifications (as that term is defined in section 502 of the Congressional Budget Act of 1974, as amended), $81,000,000, to remain available until expended: <proviso><i>Provided,</i> That these funds are available to subsidize total loan principal, any part of which is to be guaranteed, of up to $17,400,000,000:</proviso> <proviso><i>Provided further,</i> That any amounts made available in any prior appropriations Act for the cost (as such term is defined in section 502 of the Congressional Budget Act of 1974) of guaranteed loans that are obligations of the funds established under section 238 or 519 of the National Housing Act that have not been obligated or that are deobligated shall be available to the Secretary of Housing and Urban Development in connection with the making of such guarantees and shall remain available until expended, notwithstanding the expiration of any period of availability otherwise applicable to such amounts.</proviso></p> <p class="indent0 fontsize10">Gross obligations for the principal amount of direct loans, as authorized by sections 204(g), 207(1), 238(a), and 519(a) of the National Housing Act, shall not exceed $120,000,000; of which not to exceed $100,000,000 shall be for bridge financing in connection with the sale of multifamily real properties owned by the Secretary and formerly insured under such Act; and of which not to exceed $20,000,000 shall be for loans to nonprofit and governmental entities in connection with the sale of single-family real properties owned by the Secretary and formerly insured under such Act.</p> <p class="indent0 fontsize10">In addition, for administrative expenses necessary to carry out the guaranteed and direct loan programs, $222,305,000, of which $218,134,000, including $25,000,000 for the enforcement of housing standards on FHA-insured multifamily projects, shall be transferred to the appropriation for departmental salaries and expenses; and of which $4,171,000 shall be transferred to the appropriation for the Office of Inspector General.</p> </content></appropriations> </appropriations> <appropriations level="intermediate"> <heading>Government National Mortgage Association</heading> <appropriations level="small"> <heading>guarantees of mortgage-backed securities loan guarantee program account</heading> <subheading>(including transfer of funds)</subheading> <content><p class="indent0 fontsize10">During fiscal year 1998, new commitments to issue guarantees to carry out the purposes of section 306 of the National Housing Act, as amended (12 U.S.C. 1721(g)), shall not exceed $130,000,000,000.</p> <p class="indent0 fontsize10">For administrative expenses necessary to carry out the guaranteed mortgage-backed securities program, $9,383,000, to be derived from the GNMA-guarantees of mortgage-backed securities guaranteed loan receipt account, of which not to exceed $9,383,000 shall <page identifier="/us/stat/111/1363">111 STAT. 1363</page>be transferred to the appropriation for departmental salaries and expenses.</p> </content></appropriations> </appropriations> <appropriations level="intermediate"> <heading>Policy Development and Research</heading> <appropriations level="small"> <heading>research and technology</heading> <content><p class="indent0 fontsize10">For contracts, grants, and necessary expenses of programs of research and studies relating to housing and urban problems, not otherwise provided for, as authorized by title V of the Housing and Urban Development Act of 1970, as amended (12 U.S.C. 1701z–1 et seq.), including carrying out the functions of the Secretary under section 1(a)(1)(i) of Reorganization Plan No. 2 of 1968, $36,500,000, to remain available until September 30, 1999.</p> <p class="indent0 fontsize10">Of the amount made available under this heading, $500,000 shall be made available for a contract with the National Academy of Public Administration to evaluate the Secretary’s efforts to implement needed management systems and processes.</p> </content></appropriations> </appropriations> <appropriations level="intermediate"> <heading>Fair Housing and Equal Opportunity</heading> <appropriations level="small"> <heading>fair housing activities</heading> <content>For contracts, grants, and other assistance, not otherwise provided for, as authorized by title VIII of the Civil Rights Act of 1968, as amended by the Fair Housing Amendments Act of 1988, and section 561 of the Housing and Community Development Act of 1987, as amended, $30,000,000, to remain available until September 30, 1999, of which $15,000,000 shall be to carry out activities pursuant to such section 561. No funds made available under this heading shall be used to lobby the executive or legislative branches of the Federal Government in connection with a specific contract, grant or loan.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Management and Administration</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(including transfers of funds)</subheading> <content>For necessary administrative and nonadministrative expenses of the Department of Housing and Urban Development not otherwise provided for, including not to exceed $7,000 for official reception and representation expenses, $1,000,826,000, of which $544,443,000 shall be provided from the various funds of the Federal Housing Administration, $9,383,000 shall be provided from funds of the Government National Mortgage Association, and $1,000,000 shall be provided from the “Community Development Grants Program” account.</content> </appropriations> <appropriations level="small"> <heading>office of inspector general</heading> <subheading>(including transfers of funds)</subheading> <content>For necessary expenses of the Office of Inspector General in carrying out the Inspector General Act of 1978, as amended, $66,850,000, of which $16,283,000 shall be provided from the various funds of the Federal Housing Administration and $10,000,000 shall be transferred from the amount earmarked for Operation <page identifier="/us/stat/111/1364">111 STAT. 1364</page>Safe Home in the “Drug Elimination Grants for Low-Income Housing” account.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Office of Federal Housing Enterprise Oversight</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(including transfer of funds)</subheading> <content>For carrying out the Federal Housing Enterprise Financial Safety and Soundness Act of 1992, $16,000,000, to remain available until expended, to be derived from the Federal Housing Enterprise Oversight Fund: <proviso><i>Provided,</i> That not to exceed such amount shall be available from the General Fund of the Treasury to the extent necessary to incur obligations and make expenditures pending the receipt of collections to the Fund:</proviso> <proviso><i>Provided further,</i> That the General Fund amount shall be reduced as collections are received during the fiscal year so as to result in a final appropriation from the General Fund estimated at not more than $0.</proviso></content> </appropriations> <appropriations level="small"> <heading>administrative provisions</heading> <section> <num value="201"><inline class="smallCaps">Sec</inline>. 201.</num> <heading><inline class="smallCaps">Extenders</inline>.</heading> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">One-For-One Replacement of Public housing</inline>.—</heading><content><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437c">42 USC 1437c note</ref>.</p></sidenote>Section 1002(d) of Public Law 104–19 is amended by striking “<quotedText>1997</quotedText>” and inserting “<quotedText>1998</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Streamlining Section 8 Tenant-Based Assistance</inline>.—</heading><content>Section 203(d) of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f note</ref>.</p></sidenote>Act, 1996, is amended by striking “<quotedText>fiscal years 1996 and 1997</quotedText>” and inserting “<quotedText>fiscal years 1996, 1997, and 1998</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Section 8 Rent Adjustments</inline>.—</heading><chapeau>Section 8(c)(2)(A) of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f</ref>.</p></sidenote>United States Housing Act of 1937 is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in the third sentence, by striking “<quotedText>fiscal year 1997</quotedText>” and inserting “<quotedText>fiscal years 1997 and 1998</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in the last sentence, by striking “<quotedText>fiscal year 1997</quotedText>” and inserting “<quotedText>fiscal years 1997 and 1998</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Public and Assisted Housing Rents, Income Adjustments and Preferences</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Section 402(a) of The Balanced Budget Downpayment <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/110/40">110 Stat. 40</ref>.</p></sidenote>Act, I is amended by striking “<quotedText>fiscal year 1997</quotedText>” and inserting “<quotedText>fiscal years 1997 and 1998</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Section 402(f) of The Balanced Budget Downpayment <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437a">42 USC 1437a note</ref>.</p></sidenote>Act, I is amended by striking “<quotedText>fiscal years 1996 and 1997</quotedText>” and inserting “<quotedText>fiscal years 1996, 1997, and 1998</quotedText>”.</content></paragraph> </subsection> </section> <section> <num value="202"><inline class="smallCaps">Sec</inline>. 202.</num> <heading><inline class="smallCaps">Delay Reissuance of Vouchers and Certificates</inline>.—</heading><chapeau>Section 403(c) of The Balanced Budget Downpayment Act, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/110/44">110 Stat. 44</ref>.</p></sidenote>I is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>fiscal years 1996 and 1997</quotedText>” and inserting “<quotedText>fiscal years 1996, 1997, and 1998</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<quotedText>1996 and October</quotedText>” and inserting “<quotedText>1996, October</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by inserting before the semicolon the following: “and October 1, 1998 for assistance made available during fiscal year 1998”.</content></paragraph> </section> <section> <num value="203"><inline class="smallCaps">Sec</inline>. 203.</num><sidenote><p class="indent0 firstIndent0 fontsize8">Illinois.</p></sidenote> <heading><inline class="smallCaps">Waiver</inline>.—</heading><content class="inline">The part of the HUD 1996 Community Development Block Grant to the State of Illinois which is administered by the State of Illinois Department of Commerce and Community Affairs (grant number B–96–DC–170001) and which, in turn, <page identifier="/us/stat/111/1365">111 STAT. 1365</page>was granted by the Illinois Department of Commerce and Community Affairs to the city of Oglesby, Illinois, located in LaSalle County, Illinois (State of Illinois Department of Commerce and Community Affairs grant number 96–24104), for the purpose of providing infrastructure for a warehouse in Oglesby, Illinois, is exempt from the provisions of section 104(g)(2), (g)(3), and (g)(4) of title I of the Housing and Community Development Act of 1974, as amended.</content> </section> <section> <num value="204"><inline class="smallCaps">Sec</inline>. 204.</num> <heading><inline class="smallCaps">Financing Adjustment Factors</inline>.—</heading><content class="inline">Fifty percent of the amounts of budget authority, or in lieu thereof 50 percent of the cash amounts associated with such budget authority, that are recaptured from projects described in section 1012(a) of the Stewart B. McKinney Homeless Assistance Amendments Act of 1988 (Public Law 100–628; 102 Stat. 3224, 3268) shall be rescinded, or in the case of cash, shall be remitted to the Treasury, and such amounts of budget authority or cash recaptured and not rescinded or remitted to the Treasury shall be used by State housing finance agencies or local governments or local housing agencies with projects approved by the Secretary of Housing and Urban Development for which settlement occurred after January 1, 1992, in accordance with such section. Notwithstanding the previous sentence, the Secretary may award up to 15 percent of the budget authority or cash recaptured and not rescinded or remitted to the Treasury to provide project owners with incentives to refinance their project at a lower interest rate.</content> </section> <section> <num value="205"><inline class="smallCaps">Sec</inline>. 205.</num> <heading><inline class="smallCaps">Annual Adjustment Factors</inline>.—</heading><content class="inline">Section 8(c)(2)(A) of the United States Housing Act of 1937, as amended by section 201 of this title, is further amended by inserting the following new sentences at the end: “In establishing annual adjustment factors for units in new construction and substantial rehabilitation projects, the Secretary shall take into account the fact that debt service is a fixed expense. The immediately foregoing sentence<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> shall be effective only during fiscal year 1998.”.</content> </section> <section> <num value="206"><inline class="smallCaps">Sec</inline>. 206.</num> <heading><inline class="smallCaps">Community Development Block Grant</inline>.—</heading><content class="inline">Notwithstanding any other provision of law, the $7,100,000 appropriated for an industrial park at 18th Street and Indiana Avenue shall be made available by the Secretary instead to 18th and Vine for rehabilitation and infrastructure development associated with the “Negro Leagues Baseball Museum” and the jazz museum.</content> </section> <section> <num value="207"><inline class="smallCaps">Sec</inline>. 207.</num> <heading><inline class="smallCaps">Fair Housing and Free Speech</inline>.—</heading><content class="inline">None of the amounts made available under this Act may be used during fiscal year 1998 to investigate or prosecute under the Fair Housing Act any otherwise lawful activity engaged in by one or more persons, including the filing or maintaining of a nonfrivolous legal action, that is engaged in solely for the purpose of achieving or preventing action by a government official or entity, or a court of competent jurisdiction.</content> </section> <section> <num value="208"><inline class="smallCaps">Sec</inline>. 208.</num> <heading><inline class="smallCaps">Requirement for HUD To Maintain Public Notice and Comment Rulemaking</inline>.—</heading><content class="inline">Notwithstanding any other provision of law, for fiscal year 1998 and for all fiscal years thereafter, the Secretary of Housing and Urban Development shall maintain all current requirements under part 10 of the Department of Housing and Urban Development regulations (24 CFR part 10) with respect to the Department’s policies and procedures for the promulgation and issuance of rules, including the use of public participation in the rulemaking process.<page identifier="/us/stat/111/1366">111 STAT. 1366</page></content> </section> <section> <num value="209"><inline class="smallCaps">Sec</inline>. 209.</num> <heading><inline class="smallCaps">Brownfields as Eligible CDBG Activity</inline>.—</heading><content class="inline">During fiscal year 1998, States and entitlement communities may use funds allocated under the community development block grants program under title I of the Housing and Community Development Act of 1974 for environmental cleanup and economic development activities related to Brownfields projects in conjunction with the appropriate environmental regulatory agencies, as if such activities were eligible under section 105(a) of such Act.</content> </section> <section> <num value="210"><inline class="smallCaps">Sec</inline>. 210.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1735f–19">12 USC 1735f–19</ref>.</p></sidenote> <heading><inline class="smallCaps">Partial Payment of Claims on Health Care Facilities</inline>.—</heading><chapeau>Section 541(a) of the National Housing Act is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in the section heading, by adding “<quotedText><inline class="smallCaps">and health care facilities</inline></quotedText>” at the end; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>in subsection (a)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by inserting “<quotedText>or a health care facility (including a nursing home, intermediate care facility, or board and care home (as those terms are defined in section 232 of this Act), a hospital (as that term is defined in section 242 of this Act), or a group practice facility (as that term is defined in section 1106 of this Act))</quotedText>” after “1978”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by inserting “<quotedText>or for keeping the health care facility operational to serve community needs,</quotedText>” after “character of the project,”.</content></subparagraph> </paragraph> </section> <section> <num value="211"><inline class="smallCaps">Sec</inline>. 211.</num> <content class="inline">Calculation of Downpayment.—Section 203(b) of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1709">12 USC 1709</ref>.</p></sidenote>the National Housing Act is amended by striking “<quotedText>fiscal year 1997</quotedText>” in paragraph (10)(A) and inserting “<quotedText>fiscal years 1997 and 1998</quotedText>”.</content> </section> <section> <num value="212"><inline class="smallCaps">Sec</inline>. 212.</num> <heading>HOPE VI NOFA.—</heading><content class="inline">Notwithstanding any other provision of law, including the July 22, 1996 Notice of Funding Availability (61 Fed. Reg. 38024), the demolition of units at developments funded under the Notice of Funding Availability shall be at the option of the New York City Housing Authority and the assistance awarded shall be allocated by the public housing agency among other eligible activities under the HOPE VI program and without the development costs limitations of the Notice, provided that the public housing agency shall not exceed the total cost limitations for the public housing agency, as provided by the Department of Housing and Urban Development.</content> </section> <section> <num value="213"><inline class="smallCaps">Sec</inline>. 213.</num> <heading><inline class="smallCaps">Enhanced Disposition Authority</inline>.—</heading><content class="inline">Section 204 of the Departments of Veterans Affairs and Housing and Urban Development,<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1715z–11a">12 USC 1715z–11a</ref>.</p></sidenote> and Independent Agencies Appropriations Act, 1997, is amended by inserting after “<quotedText>owned by the Secretary</quotedText>” the following: “, including, for fiscal years 1997 and 1998, the provision of grants and loans from the General Insurance Fund (12 U.S.C. 1735c) for the necessary costs of rehabilitation or demolition,”.</content> </section> <section> <num value="214"><inline class="smallCaps">Sec</inline>. 214.</num> <heading><inline class="smallCaps">Home Program Formula</inline>.—</heading><content class="inline">The first sentence of section 217(b)(3) of the Cranston-Gonzalez National Affordable <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s12747">42 USC 12747</ref>.</p></sidenote>Housing Act is amended by striking “<quotedText>only those jurisdictions that are allocated an amount of $500,000 or greater shall receive an allocation</quotedText>” and inserting the following: “jurisdictions that are allocated an amount of $500,000 or more, and participating jurisdictions (other than consortia that fail to renew the membership of all of their member jurisdictions) that are allocated an amount less than $500,000, shall receive an allocation”.</content> </section> <section> <num value="215"><inline class="smallCaps">Sec</inline>. 215.</num> <heading><inline class="smallCaps">HUD Rent Reform</inline>.—</heading><content class="inline">Notwithstanding any other provision of law, the Secretary of Housing and Urban Development may provide tenant-based assistance to eligible tenants of a project <page identifier="/us/stat/111/1367">111 STAT. 1367</page>insured under either section 221(d)(3) or 236 of the National Housing Act in the same manner as if the owner had prepaid the insured mortgage to the extent necessary to minimize any rent increases or to prevent displacement of low-income tenants in accordance with a transaction approved by the Secretary provided that the rents are no higher than the published section 8 fair market rents, as of the date of enactment, during the tenants’ occupancy of the property.</content> </section> <section> <num value="216"><inline class="smallCaps">Sec</inline>. 216.</num> <heading><inline class="smallCaps">Nursing Home Lease Terms</inline>.—</heading><content class="inline">Section 232(b)(4)(B) of the National Housing Act is amended by striking “<quotedText>fifty years<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1715w">12 USC 1715w</ref>.</p></sidenote> from the date the mortgage was executed</quotedText>” and inserting “<quotedText>ten years to run beyond the maturity date of the mortgage</quotedText>”.</content> </section> <section> <num value="217"><inline class="smallCaps">Sec</inline>. 217.</num> <heading><inline class="smallCaps">Housing Opportunities for Persons With AIDS Grants</inline>.</heading> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Eligibility</inline>.—</heading><chapeau>Notwithstanding section 854(c)(1)(A) of the AIDS Housing Opportunity Act (42 U.S.C. 12903(c)(1)(A)), from any amounts made available under this title for fiscal year 1998 that are allocated under such section, the Secretary of Housing and Urban Development shall allocate and make a grant, in the amount determined under subsection (b), for any State that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>received an allocation for fiscal year 1997 under clause (ii) of such section;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>is not otherwise eligible for an allocation for fiscal year 1998 under such clause (ii) because the State does not have the number of cases of acquired immunodeficiency syndrome required under such clause; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>would meet such requirement if the cases in the metropolitan statistical area for any city within the State, which city was not eligible for an allocation for fiscal year 1997 under clause (i) of such section but is eligible for an allocation for fiscal year 1998 under such clause, were considered to be cases outside of metropolitan statistical areas described in clause (i) of such section.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Amount</inline>.—</heading><chapeau>The amount of the allocation and grant for any State described in subsection (a) shall be the amount that is equal to the lesser of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>the difference between—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>the total amount allocated for such State under section 854(c)(1)(A)(ii) of the AIDS Housing Opportunity Act for fiscal year 1997; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>the total amount allocated for the city described in subsection (a)(3) of this section under section 854(c)(1)(A)(i) of such Act for fiscal year 1998 (from amounts made available under this title); and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>$300,000.</content></paragraph> </subsection> </section> <section> <num value="218"><inline class="smallCaps">Sec</inline>. 218.</num> <heading><inline class="smallCaps">Debt Forgiveness</inline>.—</heading><content>The Secretary of Housing and Urban Development shall cancel the indebtedness of the Village of Robbins, Illinois, relating to loans under the Reconstruction Finance Corporation and refinanced under the Public Facility Loan program (loan numbers ILL–11–RFC–0029 and ILL–11–PFL0111). The Village is hereby relieved of all liability to the Federal Government for the outstanding principal balance on such loans, for the amount of accrued interest on such loans, and for any fees and charges payable in connection with such loans.<page identifier="/us/stat/111/1368">111 STAT. 1368</page></content> </section> </appropriations> </appropriations> <num value="III">TITLE III—</num><heading>INDEPENDENT AGENCIES</heading> <appropriations level="intermediate"> <heading>American Battle Monuments Commission</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses, not otherwise provided for, of the American Battle Monuments Commission, including the acquisition of land or interest in land in foreign countries; purchases and repair of uniforms for caretakers of national cemeteries and monuments outside of the United States and its territories and possessions; rent of office and garage space in foreign countries; purchase (one for replacement only) and hire of passenger motor vehicles; and insurance of official motor vehicles in foreign countries, when required by law of such countries; $26,897,000, to remain <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t36/s121b">36 USC 121b</ref>.</p></sidenote>available until expended: <proviso><i>Provided,</i> That where station allowance has been authorized by the Department of the Army for officers of the Army serving the Army at certain foreign stations, the same allowance shall be authorized for officers of the Armed Forces assigned to the Commission while serving at the same foreign stations, and this appropriation is hereby made available for the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t36/s122">36 USC 122</ref>.</p></sidenote>payment of such allowance:</proviso> <proviso><i>Provided further,</i> That when traveling on business of the Commission, officers of the Armed Forces serving as members or as Secretary of the Commission may be reimbursed for expenses as provided for civilian members of the Commission:</proviso> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t36/s122a">36 USC 122a</ref>.</p></sidenote><proviso><i>Provided further,</i> That the Commission shall reimburse other Government agencies, including the Armed Forces, for salary, pay, and allowances of personnel assigned to it.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Chemical Safety and Hazard Investigation Board</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses in carrying out activities pursuant to section 112(r)(6) of the Clean Air Act, including hire of passenger vehicles, and for services authorized by 5 U.S.C. 3109, but at rates for individuals not to exceed the per diem equivalent to the maximum rate payable for senior level positions under 5 U.S.C. 5376, $4,000,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Department of the Treasury</heading> <subheading>Community Development Financial Institutions</subheading> <appropriations level="small"> <heading>community development financial institutions fund program account</heading> <content>For grants, loans, and technical assistance to qualifying community development lenders, and administrative expenses of the Fund, including services authorized by 5 U.S.C. 3109, but at rates for individuals not to exceed the per diem rate equivalent to the rate for ES–3, $80,000,000, to remain available until September 30, 1999, of which $12,000,000 may be used for the cost of direct loans, and up to $1,000,000 may be used for administrative expenses to carry out the direct loan program: <proviso><i>Provided,</i> That the cost of direct loans, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974:</proviso> <proviso><i>Provided further,</i> That these funds are available to subsidize gross obligations for the principal amount of direct loans not to exceed <page identifier="/us/stat/111/1369">111 STAT. 1369</page>$32,000,000:</proviso> <proviso><i>Provided further,</i> That not more than $25,000,000 of the funds made available under this heading may be used for programs and activities authorized in section 114 of the Community Development Banking and Financial Institutions Act of 1994.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Consumer Product Safety Commission</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Consumer Product Safety Commission, including hire of passenger motor vehicles, services as authorized by 5 U.S.C. 3109, but at rates for individuals not to exceed the per diem rate equivalent to the maximum rate payable under 5 U.S.C. 5376, purchase of nominal awards to recognize non-Federal officials’ contributions to Commission activities, and not to exceed $500 for official reception and representation expenses, $45,000,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Corporation for National and Community Service</heading> <appropriations level="small"> <heading>national and community service programs operating expenses</heading> <subheading>(including transfer of funds)</subheading> <content>For necessary expenses for the Corporation for National and Community Service (referred to in the matter under this heading as the “Corporation”) in carrying out programs, activities, and initiatives under the National and Community Service Act of 1990 (referred to in the matter under this heading as the “Act”) (42 U.S.C. 12501 et seq.), $425,500,000, to remain available until September 30, 1999: <proviso><i>Provided,</i> That not more than $27,000,000 shall be available for administrative expenses authorized under section 501(a)(4) of the Act (42 U.S.C. 12671(a)(4)):</proviso> <proviso><i>Provided further,</i> That not more than $2,500 shall be for official reception and representation expenses:</proviso> <proviso><i>Provided further,</i> That not more than $70,000,000, to remain available without fiscal year limitation, shall be transferred to the National Service Trust account for educational awards authorized under subtitle D of title I of the Act (42 U.S.C. 12601 et seq.), of which not to exceed $5,000,000 shall be available for national service scholarships for high school students performing community service:</proviso> <proviso><i>Provided further,</i> That not more than $227,000,000 of the amount provided under this heading shall be available for grants under the National Service Trust program authorized under subtitle C of title I of the Act (42 U.S.C. 12571 et seq.) (relating to activities including the Americorps program), of which not more than $40,000,000 may be used to administer, reimburse, or support any national service program authorized under section 121(d)(2) of such Act (42 U.S.C. 12581(d)(2)):</proviso> <proviso><i>Provided further,</i> That not more than $5,500,000 of the funds made available under this heading shall be made available for the Points of Light Foundation for activities authorized under title III of the Act (42 U.S.C. 12661 et seq.):</proviso> <proviso><i>Provided further,</i> That no funds shall be available for national service programs run by Federal agencies authorized under section 121(b) of such Act (42 U.S.C. 12571(b)):</proviso> <proviso><i>Provided further,</i> That to the maximum extent feasible, funds appropriated under subtitle C of title I of the Act shall be provided in a manner that is consistent with the recommendations of peer review panels in order to ensure that priority is given to programs <page identifier="/us/stat/111/1370">111 STAT. 1370</page>that demonstrate quality, innovation, replicability, and sustainability:</proviso> <proviso><i>Provided further,</i> That not more than $18,000,000 of the funds made available under this heading shall be available for the Civilian Community Corps authorized under subtitle E of title 1 of the Act (42 U.S.C. 12611 et seq.):</proviso> <proviso><i>Provided further,</i> That not more than $43,000,000 shall be available for school-based and community-based service-learning programs authorized under subtitle B of title I of the Act (42 U.S.C. 12521 et seq.):</proviso> <proviso><i>Provided further,</i> That not more than $30,000,000 shall be available for quality and innovation activities authorized under subtitle H of title I of the Act (42 U.S.C. 12853 et seq.):</proviso> <proviso><i>Provided further,</i> That not more than $5,000,000 shall be available for audits and other evaluations authorized under section 179 of the Act (42 U.S.C. 12639):</proviso> <proviso><i>Provided further,</i> That to the maximum extent practicable, the Corporation shall increase significantly the level of matching funds and in-kind contributions provided by the private sector, shall expand significantly the number of educational awards provided under subtitle D of title I, and shall reduce the total Federal costs per participant in all programs.</proviso></content> </appropriations> <appropriations level="small"> <heading>office of inspector general</heading> <content>For necessary expenses of the Office of Inspector General in carrying out the Inspector General Act of 1978, as amended, $3,000,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Court of Veterans Appeals</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses for the operation of the United States Court of Veterans Appeals as authorized by 38 U.S.C. 7251–7298, $9,319,000, of which $790,000, shall be available for the purpose of providing financial assistance as described, and in accordance with the process and reporting procedures set forth, under this heading in Public Law 102–229.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Department of Defense—Civil</heading> <subheading>Cemeterial Expenses, Army</subheading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses, as authorized by law, for maintenance, operation, and improvement of Arlington National Cemetery and Soldiers’ and Airmen’s Home National Cemetery, including the purchase of two passenger motor vehicles for replacement only, and not to exceed $1,000 for official reception and representation expenses, $11,815,000, to remain available until expended.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Environmental Protection Agency</heading> <appropriations level="small"> <heading>science and technology</heading> <subheading>(including transfer of funds)</subheading> <content>For science and technology, including research and development activities, which shall include research and development activities under the Comprehensive Environmental Response, Compensation, <page identifier="/us/stat/111/1371">111 STAT. 1371</page>and Liability Act of 1980 (CERCLA), as amended; necessary expenses for personnel and related costs and travel expenses, including uniforms, or allowances therefore, as authorized by 5 U.S.C. 5901–5902; services as authorized by 5 U.S.C. 3109, but at rates for individuals not to exceed the per diem rate equivalent to the rate for GS–18; procurement of laboratory equipment and supplies; other operating expenses in support of research and development; construction, alteration, repair, rehabilitation, and renovation of facilities, not to exceed $75,000 per project, $631,000,000, which shall remain available until September 30, 1999: <proviso><i>Provided,</i> That $49,600,000 of the funds appropriated under this heading shall be to conduct and administer a comprehensive, peer-reviewed, near-and long-term particulate matter research program in accordance with the terms and conditions set forth for such research program in the conference report and joint explanatory statement of the committee of conference accompanying this Act (H.R. 2158):</proviso> <proviso><i>Provided further,</i> That no later than 30 days following enactment<sidenote><p class="indent0 firstIndent0 fontsize8">Contracts.</p></sidenote> of this Act, the Environmental Protection Agency shall enter into a contract or cooperative agreement with the National Academy of Sciences to develop a comprehensive, prioritized, near- and long-term particulate matter research program and monitoring plan in accordance with the terms and conditions set forth in the conference report and joint explanatory statement of the committee of conference accompanying this Act (H.R. 2158).</proviso></content> </appropriations> <appropriations level="small"> <heading>environmental programs and management</heading> <content>For environmental programs and management, including necessary expenses, not otherwise provided for, for personnel and related costs and travel expenses, including uniforms, or allowances therefore, as authorized by 5 U.S.C. 5901–5902; services as authorized by 5 U.S.C. 3109, but at rates for individuals not to exceed the per diem rate equivalent to the rate for GS–18; hire of passenger motor vehicles; hire, maintenance, and operation of aircraft; purchase of reprints; library memberships in societies or associations which issue publications to members only or at a price to members lower than to subscribers who are not members; construction, alteration, repair, rehabilitation, and renovation of facilities, not to exceed $75,000 per project; and not to exceed $6,000 for official reception and representation expenses, $1,801,000,000, which shall remain available until September 30, 1999.</content> </appropriations> <appropriations level="small"> <heading>office of inspector general</heading> <content>For necessary expenses of the Office of Inspector General in carrying out the provisions of the Inspector General Act of 1978, as amended, and for construction, alteration, repair, rehabilitation, and renovation of facilities, not to exceed $75,000 per project, $28,501,000, to remain available until September 30, 1999.</content> </appropriations> <appropriations level="small"> <heading>buildings and facilities</heading> <content>For construction, repair, improvement, extension, alteration, and purchase of fixed equipment or facilities of, or for use by, the Environmental Protection Agency, $109,420,000, to remain available until expended: <proviso><i>Provided,</i> That the Environmental Protection Agency is authorized to establish and construct a consolidated research facility at Research Triangle Park, North Carolina, at <page identifier="/us/stat/111/1372">111 STAT. 1372</page>a maximum total construction cost of $272,700,000, and to obligate such monies as are made available by this Act for this purpose.</proviso></content> </appropriations> <appropriations level="small"> <heading>hazardous substance superfund</heading> <subheading>(including transfer of funds)</subheading> <content>For necessary expenses to carry out the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA), as amended, including sections 111(c)(3), (c)(5), (c)(6), and (e)(4) (42 U.S.C. 9611), and for construction, alteration, repair, rehabilitation, and renovation of facilities, not to exceed $75,000 per project; not to exceed $2,150,000,000 (of which $100,000,000 shall not become available until September 1, 1998), to remain available until expended, consisting of $1,900,000,000, as authorized by section 517(a) of the Superfund Amendments and Reauthorization Act of 1986 (SARA), as amended by Public Law 101–508, and $250,000,000 as a payment from general revenues to the Hazardous Substance Superfund as authorized by section 517(b) of SARA, as amended by Public Law 101–508: <proviso><i>Provided,</i> That funds appropriated under this heading may be allocated to other Federal agencies in accordance with section 111(a) of CERCLA:</proviso> <proviso><i>Provided further,</i> That of the funds appropriated under this heading, $650,000,000 shall not become available for obligation until October 1, 1998, and, further, shall be available for obligation only upon enactment by May 15, 1998, of specific legislation which reauthorizes the Superfund program:</proviso> <proviso><i>Provided further,</i> That $11,641,000 of the funds appropriated under this heading shall be transferred to the “Office of Inspector General” appropriation to remain available until September 30, 1999:</proviso> <proviso><i>Provided further,</i> That notwithstanding section 111(m) of CERCLA or any other provision of law, $74,000,000 of the funds appropriated under this heading shall be available to the Agency for Toxic Substances and Disease Registry to carry out activities described in sections 104(i), 111(c)(4), and 111(c)(14) of CERCLA and section 118(f) of SARA:</proviso> <proviso><i>Provided further,</i> That $35,000,000 of the funds appropriated under this heading shall be transferred to the “Science and Technology” appropriation to remain available until September 30, 1999:</proviso> <proviso><i>Provided further,</i> That none of the funds appropriated under this heading shall be used for Brownfields revolving loan funds unless specifically authorized by subsequent legislation:</proviso> <proviso><i>Provided further,</i> That none of the funds appropriated under this heading shall be available for the Agency for Toxic Substances and Disease Registry to issue in excess of 40 toxicological profiles pursuant to section 104(i) of CERCLA during fiscal year 1998.</proviso></content> </appropriations> <appropriations level="small"> <heading>leaking underground storage tank program</heading> <subheading>(including transfer of funds)</subheading> <content>For necessary expenses to carry out leaking underground storage tank cleanup activities authorized by section 205 of the Superfund Amendments and Reauthorization Act of 1986, and for construction, alteration, repair, rehabilitation, and renovation of facilities, not to exceed $75,000 per project, $65,000,000, to remain available until expended: <proviso><i>Provided,</i> That no more than $7,500,000 shall be available for administrative expenses.</proviso><page identifier="/us/stat/111/1373">111 STAT. 1373</page></content> </appropriations> <appropriations level="small"> <heading>oil spill response</heading> <subheading>(including transfer of funds)</subheading> <content>For expenses necessary to carry out the Environmental Protection Agency’s responsibilities under the Oil Pollution Act of 1990, $15,000,000, to be derived from the Oil Spill Liability trust fund, and to remain available until expended: <proviso><i>Provided,</i> That not more than $9,000,000 of these funds shall be available for administrative expenses.</proviso></content> </appropriations> <appropriations level="small"> <heading>state and tribal assistance grants</heading> <content>For environmental programs and infrastructure assistance, including capitalization grants for State revolving funds and performance partnership grants, $3,213,125,000, to remain available until expended, of which $1,350,000,000 shall be for making capitalization grants for the Clean Water State Revolving Funds under title VI of the Federal Water Pollution Control Act, as amended, and $725,000,000 shall be for capitalization grants for the Drinking Water State Revolving Funds under section 1452 of the Safe Drinking Water Act, as amended; $75,000,000 for architectural, engineering, planning, design, construction and related activities in connection with the construction of high priority water and wastewater facilities in the area of the United States-Mexico border, after consultation with the appropriate border commission; $50,000,000 for grants to the State of Texas which shall be matched by State funds from State resources at 20 percent of the Federal appropriation for the purpose of improving water and wastewater treatment for colonias; $15,000,000 for grants to the State of Alaska to address drinking water and wastewater infrastructure needs of rural and Alaska Native Villages as provided by section 303 of Public Law 104–182; $253,125,000 for making grants for the construction of wastewater and water treatment facilities and groundwater protection infrastructure in accordance with the terms and conditions specified for such grants in the conference report and joint explanatory statement of the committee of conference accompanying this Act (H.R. 2158); and $745,000,000<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t33/s1281">33 USC 1281 note</ref>.</p></sidenote> for grants to States, federally recognized tribes, and air pollution control agencies for multi-media or single media pollution prevention, control and abatement and related activities pursuant to the provisions set forth under this heading in Public Law 104–134, provided that eligible recipients of these funds and the funds made available for this purpose since fiscal year 1996 and hereafter include States, federally recognized tribes, interstate agencies, tribal consortia, and air pollution control agencies, as provided in authorizing statutes, subject to such terms and conditions as the Administrator shall establish, and for making grants under section 103 of the Clean Air Act for particulate matter monitoring and data collection activities: <proviso><i>Provided,</i> That, consistent with section 1452(g) of the Safe Drinking Water Act (42 U.S.C. 300j–12(g)), section 302 of the Safe Drinking Water Act Amendments of 1996 (Public Law 104–182) and the accompanying joint explanatory statement of the committee on conference (H. Rept. No. 104–741 to accompany S. 1316, the Safe Drinking Water Act Amendments of 1996), and notwithstanding any other provision of law, States may combine the assets of State Revolving Funds (SRFs) established under section 1452 of the Safe Drinking Water Act, as amended, and title <page identifier="/us/stat/111/1374">111 STAT. 1374</page>VI of the Federal Water Pollution Control Act, as amended, as security for bond issues to enhance the lending capacity of one or both SRFs, but not to acquire the State match for either program, provided that revenues from the bonds are allocated to the purposes of the Safe Drinking Water Act and the Federal Water Pollution Control Act in the same portion as the funds are used as security <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t33/s1281">33 USC 1281 note</ref>.</p></sidenote>for the bonds:</proviso> <proviso><i>Provided further,</i> That, hereafter from funds appropriated under this heading, the Administrator is authorized to make grants to federally recognized Indian governments for the development of multi-media environmental programs:</proviso> <proviso><i>Provided further,</i> That, hereafter, the funds available under this heading for grants to States, federally recognized tribes, and air pollution control agencies for multi-media or single media pollution prevention, control and abatement and related activities may also be used for the direct implementation by the Federal Government of a program required by law in the absence of an acceptable State or tribal program:</proviso> <proviso><i>Provided further,</i> That notwithstanding any other provision of law, in the case of a publicly owned treatment works in the District of Columbia, the Federal share of grants awarded under title II of the Federal Water Pollution Control Act, beginning October 1, 1997, and continuing through September 30, 1999, shall be 80 percent of the cost of construction, and all grants made to such publicly owned treatment works in the District of Columbia may include an advance of allowance under section 201(l)(2):</proviso> <proviso><i>Provided further,</i> That, notwithstanding any other provision of law, the Administrator is authorized to make a grant of $4,326,000 under title II of the Federal Water Pollution Control Act, as amended, from funds appropriated in prior years under section 205 of the Act for the State of Florida and available due to deobligation, to the appropriate instrumentality for wastewater treatment works in Monroe County, Florida.</proviso></content> </appropriations> <appropriations level="small"> <heading>working capital fund</heading> <content>Under this heading in Public Law 104–204, delete the following: the phrases “franchise fund pilot to be known as the”; “as authorized by section 403 of Public Law 103–356,”; and “as provided in such section”; and the final proviso. After the phrase “to be available”, insert “<quotedText>without fiscal year limitation</quotedText>”.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Executive Office of the President</heading> <appropriations level="small"> <heading>office of science and technology policy</heading> <content>For necessary expenses of the Office of Science and Technology Policy, in carrying out the purposes of the National Science and Technology Policy, Organization, and Priorities Act of 1976 (42 U.S.C. 6601 and 6671), hire of passenger motor vehicles, and services as authorized by 5 U.S.C. 3109, not to exceed $2,500 for official reception and representation expenses, and rental of conference rooms in the District of Columbia, $4,932,000.</content> </appropriations> <appropriations level="small"> <heading>council on environmental quality and office of environmental quality</heading> <content>For necessary expenses to continue functions assigned to the Council on Environmental Quality and Office of Environmental Quality pursuant to the National Environmental Policy Act of 1969, <page identifier="/us/stat/111/1375">111 STAT. 1375</page>the Environmental Quality Improvement Act of 1970, and Reorganization Plan No. 1 of 1977, $2,500,000: <proviso><i>Provided,</i> That, notwithstanding any other provision of law, no funds other than those appropriated under this heading shall be used for or by the Council on Environmental Quality and Office of Environmental Quality:</proviso> <proviso><i>Provided further,</i> That notwithstanding section 202 of the National<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s4342">42 USC 4342 note</ref>.</p></sidenote> Environmental Policy Act of 1970, the Council shall consist of one member, appointed by the President, by and with the advice and consent of the Senate, serving as chairman and exercising all powers, functions, and duties of the Council.</proviso></content> </appropriations> <appropriations level="small"> <heading>unanticipated needs</heading> <content>For expenses necessary to enable the President to meet unanticipated needs, in furtherance of the national interest, security, or defense which may arise at home or abroad during the current fiscal year, $1,000,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Federal Deposit Insurance Corporation</heading> <appropriations level="small"> <heading>office of inspector general</heading> <subheading>(including transfer of funds)</subheading> <content>For necessary expenses of the Office of Inspector General in carrying out the provisions of the Inspector General Act of 1978, as amended, $34,365,000, to be derived from the Bank Insurance Fund, the Savings Association Insurance Fund, and the FSLIC Resolution Fund.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Federal Emergency Management Agency</heading> <appropriations level="small"> <heading>disaster relief</heading> <content>For necessary expenses in carrying out the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.), $320,000,000, and, notwithstanding 42 U.S.C. 5203, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>disaster assistance direct loan program account</heading> <content><p class="indent0 fontsize10">For the cost of direct loans, $1,495,000, as authorized by section 319 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act: <proviso><i>Provided,</i> That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974, as amended:</proviso> <proviso><i>Provided further,</i> That these funds are available to subsidize gross obligations for the principal amount of direct loans not to exceed $25,000,000.</proviso></p> <p class="indent0 fontsize10">In addition, for administrative expenses to carry out the direct loan program, $341,000.</p> </content></appropriations> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses, not otherwise provided for, including hire and purchase of motor vehicles as authorized by 31 U.S.C. 1343; uniforms, or allowances therefor, as authorized by 5 U.S.C. 5901–5902; services as authorized by 5 U.S.C. 3109, but at rates for individuals not to exceed the per diem rate equivalent to the rate for GS–18; expenses of attendance of cooperating officials and <page identifier="/us/stat/111/1376">111 STAT. 1376</page>individuals at meetings concerned with the work of emergency preparedness; transportation in connection with the continuity of Government programs to the same extent and in the same manner as permitted the Secretary of a Military Department under 10 U.S.C. 2632; and not to exceed $2,500 for official reception and representation expenses, $171,773,000.</content> </appropriations> <appropriations level="small"> <heading>office of inspector general</heading> <content>For necessary expenses of the Office of Inspector General in carrying out the Inspector General Act of 1978, as amended, $4,803,000.</content> </appropriations> <appropriations level="small"> <heading>emergency management planning and assistance</heading> <content>For necessary expenses, not otherwise provided for, to carry out activities under the National Flood Insurance Act of 1968, as amended, and the Flood Disaster Protection Act of 1973, as amended (42 U.S.C. 4001 et seq.), the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.), the Earthquake Hazards Reduction Act of 1977, as amended (42 U.S.C. 7701 et seq.), the Federal Fire Prevention and Control Act of 1974, as amended (15 U.S.C. 2201 et seq.), the Defense Production Act of 1950, as amended (50 U.S.C. App. 2061 et seq.), sections 107 and 303 of the National Security Act of 1947, as amended (50 U.S.C. 404–405), and Reorganization Plan No. 3 of 1978, $243,546,000: <proviso><i>Provided,</i> That for purposes of pre-disaster mitigation pursuant to 42 U.S.C. 5131(b) and (c) and 42 U.S.C. 5196(e) and (i), $30,000,000 of the funds made available under this heading shall be available until expended for project grants:</proviso> <proviso><i>Provided further,</i><sidenote><p class="indent0 firstIndent0 fontsize8">Grants.</p><p class="indent0 firstIndent0 fontsize8">Mississippi.</p></sidenote> That the Director of the Federal Emergency Management Agency shall make a grant for $1,500,000 to resolve issues under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, Public Law 91–646, involving the City of Jackson, Mississippi.</proviso></content> </appropriations> <appropriations level="small"> <heading>emergency food and shelter program</heading> <content>To carry out an emergency food and shelter program pursuant to title III of Public Law 100–77, as amended, $100,000,000: <proviso><i>Provided,</i> That total administrative costs shall not exceed three and one-half percent of the total appropriation.</proviso></content> </appropriations> <appropriations level="small"> <heading>national flood insurance fund</heading> <subheading>(including transfer of funds)</subheading> <content><p class="indent0 fontsize10">For activities under the National Flood Insurance Act of 1968, the Flood Disaster Protection Act of 1973, and the National Flood Insurance Reform Act of 1994, not to exceed $21,610,000 for salaries and expenses associated with flood mitigation and flood insurance operations, and not to exceed $78,464,000 for flood mitigation, including up to $20,000,000 for expenses under section 1366 of the National Flood Insurance Act, which amount shall be available for transfer to the National Flood Mitigation Fund until September 30, 1999. In fiscal year 1998, no funds in excess of: (1) $47,000,000 for operating expenses; (2) $375,165,000 for agents’ commissions and taxes; and (3) $50,000,000 for interest on Treasury borrowings shall be available from the National Flood Insurance Fund without <page identifier="/us/stat/111/1377">111 STAT. 1377</page>prior notice to the Committees on Appropriations. For fiscal year 1998, flood insurance rates shall not exceed the level authorized by the National Flood Insurance Reform Act of 1994.</p> <p class="indent0 fontsize10">Section 1309(a)(2) of the National Flood Insurance Act (42 U.S.C. 4016(a)(2)), as amended by Public Law 104–208, is further amended by striking “<quotedText>1997</quotedText>” and inserting “<quotedText>1998</quotedText>”.</p> <p class="indent0 fontsize10">Section 1319 of the National Flood Insurance Act of 1968, as amended (42 U.S.C. 4026), is amended by striking “<quotedText>October 23, 1997</quotedText>” and inserting “<quotedText>September 30, 1998</quotedText>”.</p> <p class="indent0 fontsize10">Section 1336 of the National Flood Insurance Act of 1968, as amended (42 U.S.C. 4056), is amended by striking “<quotedText>October 23, 1997</quotedText>” and inserting “<quotedText>September 30, 1998</quotedText>”.</p> <p class="indent0 fontsize10">The first sentence of section 1376(c) of the National Flood Insurance Act of 1968, as amended (42 U.S.C. 4127(c)), is amended by striking all after “to be appropriated” and inserting “<quotedText>such sums as may be necessary through September 30, 1998, for studies under this title.</quotedText>”.</p> </content></appropriations> <appropriations level="small"> <heading>administrative provision</heading> <content>The Director of the Federal Emergency Management Agency<sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote> shall promulgate through rulemaking a methodology for assessment and collection of fees to be assessed and collected beginning in fiscal year 1998 applicable to persons subject to the Federal Emergency Management Agency’s radiological emergency preparedness regulations. The aggregate charges assessed pursuant to this section during fiscal year 1998 shall approximate, but not be less than, 100 percent of the amounts anticipated by the Federal Emergency Management Agency to be obligated for its radiological emergency preparedness program for such fiscal year. The methodology for assessment and collection of fees shall be fair and equitable, and shall reflect the full amount of costs of providing radiological emergency planning, preparedness, response and associated services. Such fees shall be assessed in a manner that reflects the use of agency resources for classes of regulated persons and the administrative costs of collecting such fees. Fees received pursuant to this section shall be deposited in the general fund of the Treasury as offsetting receipts. Assessment and collection of such fees are only authorized during fiscal year 1998.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>General Services Administration</heading> <appropriations level="small"> <heading>consumer information center fund</heading> <content>For necessary expenses of the Consumer Information Center, including services authorized by 5 U.S.C. 3109, $2,419,000, to be deposited into the Consumer Information Center Fund: <proviso><i>Provided,</i> That the appropriations, revenues and collections deposited into the fund shall be available for necessary expenses of Consumer Information Center activities in the aggregate amount of $7,500,000. Appropriations, revenues, and collections accruing to this fund during fiscal year 1998 in excess of $7,500,000 shall remain in the fund and shall not be available for expenditure except as authorized in appropriations Acts:</proviso> <proviso><i>Provided further,</i> That notwithstanding any <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t40/s761a">40 USC 761a</ref>.</p></sidenote>other provision of law, the Consumer Information Center may accept and deposit to this account, during fiscal year 1998 and hereafter, gifts for the purpose of defraying its costs of printing, publishing, and distributing consumer information and educational materials <page identifier="/us/stat/111/1378">111 STAT. 1378</page>and undertaking other consumer information activities; may expend those gifts for those purposes, in addition to amounts appropriated or otherwise made available; and the balance shall remain available for expenditure for such purpose.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Aeronautics and Space Administration</heading> <appropriations level="small"> <heading>human space flight</heading> <content>For necessary expenses, not otherwise provided for, in the conduct and support of human space flight research and development activities, including research, development, operations, and services; maintenance; construction of facilities including repair, rehabilitation, and modification of real and personal property, and acquisition or condemnation of real property, as authorized by law; space flight, spacecraft control and communications activities including operations, production, and services; and purchase, lease, charter, maintenance and operation of mission and administrative aircraft, $5,506,500,000, to remain available until September 30, 1999: <proviso><i>Provided,</i> That of the $2,351,300,000 made available under this heading for Space Station activities, only $1,500,000,000 shall be available before March 31, 1998.</proviso></content> </appropriations> <appropriations level="small"> <heading>science, aeronautics and technology</heading> <content>For necessary expenses, not otherwise provided for, in the conduct and support of science, aeronautics and technology research and development activities, including research, development, operations, and services; maintenance; construction of facilities including repair, rehabilitation, and modification of real and personal property, and acquisition or condemnation of real property, as authorized by law; space flight, spacecraft control and communications activities including operations, production, and services; and purchase, lease, charter, maintenance and operation of mission and administrative aircraft, $5,690,000,000, to remain available until September 30, 1999.</content> </appropriations> <appropriations level="small"> <heading>mission support</heading> <content>For necessary expenses, not otherwise provided for, in carrying out mission support for human space flight programs and science, aeronautical, and technology programs, including research operations and support; space communications activities including operations, production and services; maintenance; construction of facilities including repair, rehabilitation, and modification of facilities, minor construction of new facilities and additions to existing facilities, facility planning and design, environmental compliance and restoration, and acquisition or condemnation of real property, as authorized by law; program management; personnel and related costs, including uniforms or allowances therefor, as authorized by 5 U.S.C. 5901–5902; travel expenses; purchase, lease, charter, maintenance, and operation of mission and administrative aircraft; not to exceed $35,000 for official reception and representation expenses; and purchase (not to exceed 33 for replacement only) and hire of passenger motor vehicles; $2,433,200,000, to remain available until September 30, 1999.<page identifier="/us/stat/111/1379">111 STAT. 1379</page></content> </appropriations> <appropriations level="small"> <heading>office of inspector general</heading> <content>For necessary expenses of the Office of Inspector General in carrying out the Inspector General Act of 1978, as amended, $18,300,000.</content> </appropriations> <appropriations level="small"> <heading>administrative provisions</heading> <content><p class="indent0 fontsize10">Notwithstanding the limitation on the availability of funds appropriated for “Human space flight”, “Science, aeronautics and technology”, or “Mission support” by this appropriations Act, when any activity has been initiated by the incurrence of obligations for construction of facilities as authorized by law, such amount available for such activity shall remain available until expended. This provision does not apply to the amounts appropriated in “Mission support” pursuant to me authorization for repair, rehabilitation and modification of facilities, minor construction of new facilities and additions to existing facilities, and facility planning and design.</p> <p class="indent0 fontsize10">Notwithstanding the limitation on the availability of funds appropriated for “Human space flight”, “Science, aeronautics and technology”, or “Mission support” by this appropriations Act, the amounts appropriated for construction of facilities shall remain available until September 30, 2000.</p> <p class="indent0 fontsize10">Notwithstanding the limitation on the availability of funds appropriated for “Mission support” and “Office of Inspector General”, amounts made available by this Act for personnel and related costs and travel expenses of the National Aeronautics and Space Administration shall remain available until September 30, 1998 and may be used to enter into contracts for training, investigations, costs associated with personnel relocation, and for other services, to be provided during the next fiscal year.</p> <p class="indent0 fontsize10">Of the funds provided to the National Aeronautics and Space<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> Administration in this Act, the Administrator shall by November 1, 1998, make available no less than $400,000 for a study by the National Research Council, with an interim report to be completed by June 1, 1998, that evaluates, in terms of the potential impact on the Space Station’s assembly schedule, budget, and capabilities, the engineering challenges posed by extravehicular activity (EVA) requirements, United States and non-United States space launch requirements, the potential need to upgrade or replace equipment and components after assembly complete, and the requirement to decommission and disassemble the facility.</p> </content></appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Credit Union Administration</heading> <appropriations level="small"> <heading>central liquidity facility</heading> <content>During fiscal year 1998, gross obligations of the Central Liquidity Facility for the principal amount of new direct loans to member credit unions, as authorized by the National Credit Union Central Liquidity Facility Act (12 U.S.C. 1795), shall not exceed $600,000,000: <proviso><i>Provided,</i> That administrative expenses of the Central Liquidity Facility in fiscal year 1998 shall not exceed $203,000:</proviso> <proviso><i>Provided further,</i> That $1,000,000, together with amounts of principal and interest on loans repaid, to be available until expended, is available for loans to community development credit unions.</proviso><page identifier="/us/stat/111/1380">111 STAT. 1380</page></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Science Foundation</heading> <appropriations level="small"> <heading>research and related activities</heading> <content>For necessary expenses in carrying out the National Science Foundation Act of 1950, as amended (42 U.S.C. 1861–1875), and the Act to establish a National Medal of Science (42 U.S.C. 18801881); services as authorized by 5 U.S.C. 3109; maintenance and operation of aircraft and purchase of flight services for research support: acquisition of aircraft; $2,545,700,000, of which not to exceed $228,530,000 shall remain available until expended for Polar research and operations support, and for reimbursement to other Federal agencies for operational and science support and logistical and other related activities for the United States Antarctic program; the balance to remain available until September 30, 1999: <proviso><i>Provided,</i> That receipts for scientific support services and materials furnished by the National Research Centers and other National Science Foundation supported research facilities may be credited to this appropriation:</proviso> <proviso><i>Provided further,</i> That to the extent that the amount appropriated is less than the total amount authorized to be appropriated for included program activities, all amounts, including floors and ceilings, specified in the authorizing Act for those program activities or their subactivities shall be reduced proportionally:</proviso> <proviso><i>Provided further,</i> That $40,000,000 of the funds available under this heading shall be made available for a comprehensive research initiative on plant genomes for economically significant crops.</proviso></content> </appropriations> <appropriations level="small"> <heading>major research equipment</heading> <content>For necessary expenses of major construction projects pursuant to the National Science Foundation Act of 1950, as amended, $109,000,000, to remain available until expended, of which $35,000,000 shall become available on September 30, 1998.</content> </appropriations> <appropriations level="small"> <heading>education and human resources</heading> <content>For necessary expenses in carrying out science and engineering education and human resources programs and activities pursuant to the National Science Foundation Act of 1950, as amended (42 U.S.C. 1861–1875), including services as authorized by 5 U.S.C. 3109 and rental of conference rooms in the District of Columbia, $632,500,000, to remain available until September 30, 1999: <proviso><i>Provided,</i> That to the extent that the amount of this appropriation is less than the total amount authorized to be appropriated for included program activities, all amounts, including floors and ceilings, specified in the authorizing Act for those program activities or their subactivities shall be reduced proportionally.</proviso></content> </appropriations> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For salaries and expenses necessary in carrying out the National Science Foundation Act of 1950, as amended (42 U.S.C. 1861–1875); services authorized by 5 U.S.C. 3109; hire of passenger motor vehicles; not to exceed $9,000 for official reception and representation expenses; uniforms or allowances therefor, as authorized by 5 U.S.C. 5901–5902; rental of conference rooms in the District of Columbia; reimbursement of the General Services Administration for security guard services and headquarters relocation; $136,950,000: <proviso><i>Provided,</i> That contracts may be entered into under <page identifier="/us/stat/111/1381">111 STAT. 1381</page>“Salaries and expenses” in fiscal year 1998 for maintenance and operation of facilities, and for other services, to be provided during the next fiscal year.</proviso></content> </appropriations> <appropriations level="small"> <heading>office of inspector general</heading> <content>For necessary expenses of the Office of Inspector General as authorized by the Inspector General Act of 1978, as amended, $4,850,000, to remain available until September 30, 1999.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Neighborhood Reinvestment Corporation</heading> <appropriations level="small"> <heading>payment to the neighborhood reinvestment corporation</heading> <content>For payment to the Neighborhood Reinvestment Corporation for use in neighborhood reinvestment activities, as authorized by the Neighborhood Reinvestment Corporation Act (42 U.S.C. 81018107), $60,000,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Selective Service System</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Selective Service System, including expenses of attendance at meetings and of training for uniformed personnel assigned to the Selective Service System, as authorized by 5 U.S.C. 4101–4118 for civilian employees; and not to exceed $1,000 for official reception and representation expenses; $23,413,000: <proviso><i>Provided,</i> That during the current fiscal year, the President may exempt this appropriation from the provisions of 31 U.S.C. 1341, whenever he deems such action to be necessary in the interest of national defense:</proviso> <proviso><i>Provided further,</i> That none of the funds appropriated by this Act may be expended for or in connection with the induction of any person into the Armed Forces of the United States.</proviso></content> </appropriations> </appropriations> <num value="IV">TITLE IV—</num><heading>GENERAL PROVISIONS</heading> <section> <num value="401"><inline class="smallCaps">Sec</inline>. 401.</num> <content class="inline">Where appropriations in titles I, II, and III of this Act are expendable for travel expenses and no specific limitation has been placed thereon, the expenditures for such travel expenses may not exceed the amounts set forth therefore in the budget estimates submitted for the appropriations: <proviso><i>Provided,</i> That this provision does not apply to accounts that do not contain an object classification for travel:</proviso> <proviso><i>Provided further,</i> That this section shall not apply to travel performed by uncompensated officials of local boards and appeal boards of the Selective Service System; to travel performed directly in connection with care and treatment of medical beneficiaries of the Department of Veterans Affairs; to travel performed in connection with major disasters or emergencies declared or determined by the President under the provisions of the Robert T. Stafford Disaster Relief and Emergency Assistance Act; to travel performed by the Offices of Inspector General in connection with audits and investigations; or to payments to interagency motor pools where separately set forth in the budget schedules:</proviso> <proviso><i>Provided further,</i> That if appropriations in titles I, II, and III exceed the amounts set forth in budget estimates initially submitted for such appropriations, the expenditures for travel may correspondingly <page identifier="/us/stat/111/1382">111 STAT. 1382</page>exceed the amounts therefore set forth in the estimates in the same proportion.</proviso></content> </section> <section> <num value="402"><inline class="smallCaps">Sec</inline>. 402.</num> <content class="inline">Appropriations and funds available for the administrative expenses of the Department of Housing and Urban Development and the Selective Service System shall be available in the current fiscal year for purchase of uniforms, or allowances therefor, as authorized by 5 U.S.C. 5901–5902; hire of passenger motor vehicles; and services as authorized by 5 U.S.C. 3109.</content> </section> <section> <num value="403"><inline class="smallCaps">Sec</inline>. 403.</num> <content class="inline">Funds of the Department of Housing and Urban Development subject to the Government Corporation Control Act or section 402 of the Housing Act of 1950 shall be available, without regard to the limitations on administrative expenses, for legal services on a contract or fee basis, and for utilizing and making payment for services and facilities of Federal National Mortgage Association, Government National Mortgage Association, Federal Home Loan Mortgage Corporation, Federal Financing Bank, Federal Reserve banks or any member thereof, Federal Home Loan banks, and any insured bank within the meaning of the Federal Deposit Insurance Corporation Act, as amended (12 U.S.C. 1811–1831).</content> </section> <section> <num value="404"><inline class="smallCaps">Sec</inline>. 404.</num> <content class="inline">No part of any appropriation contained in this Act shall remain available for obligation beyond the current fiscal year unless expressly so provided herein.</content> </section> <section> <num value="405"><inline class="smallCaps">Sec</inline>. 405.</num> <chapeau class="inline">No funds appropriated by this Act may be expended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>pursuant to a certification of an officer or employee of the United States unless—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>such certification is accompanied by, or is part of, a voucher or abstract which describes the payee or payees and the items or services for which such expenditure is being made; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>the expenditure of funds pursuant to such certification, and without such a voucher or abstract, is specifically authorized by law; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>unless such expenditure is subject to audit by the General Accounting Office or is specifically exempt by law from such audit.</content></paragraph> </section> <section> <num value="406"><inline class="smallCaps">Sec</inline>. 406.</num> <content class="inline">None of the funds provided in this Act to any department or agency may be expended for the transportation of any officer or employee of such department or agency between his domicile and his place of employment, with the exception of any officer or employee authorized such transportation under 31 U.S.C. 1344 or 5 U.S.C. 7905.</content> </section> <section> <num value="407"><inline class="smallCaps">Sec</inline>. 407.</num> <content class="inline">None of the funds provided in this Act may be used for payment, through grants or contracts, to recipients that do not share in the cost of conducting research resulting from proposals not specifically solicited by the Government: <proviso><i>Provided,</i> That the extent of cost sharing by the recipient shall reflect the mutuality of interest of the grantee or contractor and the Government in the research.</proviso></content> </section> <section> <num value="408"><inline class="smallCaps">Sec</inline>. 408.</num> <content class="inline">None of the funds in this Act may be used, directly or through grants, to pay or to provide reimbursement for payment of the salary of a consultant (whether retained by the Federal Government or a grantee) at more than the daily equivalent of the rate paid for level IV of the Executive Schedule, unless specifically authorized by law.</content> </section> <section> <num value="409"><inline class="smallCaps">Sec</inline>. 409.</num> <content class="inline">None of the funds provided in this Act shall be used to pay the expenses of, or otherwise compensate, non-Federal <page identifier="/us/stat/111/1383">111 STAT. 1383</page>parties intervening in regulatory or adjudicatory proceedings. Nothing herein affects the authority of the Consumer Product Safety Commission pursuant to section 7 of the Consumer Product Safety Act (15 U.S.C. 2056 et seq.).</content> </section> <section> <num value="410"><inline class="smallCaps">Sec</inline>. 410.</num> <content class="inline">Except as otherwise provided under existing law<sidenote><p class="indent0 firstIndent0 fontsize8">Contracts.</p><p class="indent0 firstIndent0 fontsize8">Public information.</p><p class="indent0 firstIndent0 fontsize8">Records.</p></sidenote> or under an existing Executive order issued pursuant to an existing law, the obligation or expenditure of any appropriation under this Act for contracts for any consulting service shall be limited to contracts which are: (1) a matter of public record and available for public inspection; and (2) thereafter included in a publicly available list of all contracts entered into within 24 months prior to the date on which the list is made available to the public and of all contracts on which performance has not been completed by such date. The list required by the preceding sentence shall be updated quarterly and shall include a narrative description of the work to be performed under each such contract.</content> </section> <section> <num value="411"><inline class="smallCaps">Sec</inline>. 411.</num> <content class="inline">Except as otherwise provided by law, no part of any appropriation contained in this Act shall be obligated or expended by any executive agency, as referred to in the Office of Federal Procurement Policy Act (41 U.S.C. 401 et seq.), for a contract for services unless such executive agency: (1) has awarded and entered into such contract in full compliance with such Act and the regulations promulgated thereunder; and (2) requires any report prepared pursuant to such contract, including plans, evaluations, studies, analyses and manuals, and any report prepared by the agency which is substantially derived from or substantially includes any report prepared pursuant to such contract, to contain information concerning: (A) the contract pursuant to which the report was prepared; and (B) the contractor who prepared the report pursuant to such contract.</content> </section> <section> <num value="412"><inline class="smallCaps">Sec</inline>. 412.</num> <content class="inline">Except as otherwise provided in section 406, none of the funds provided in this Act to any department or agency shall be obligated or expended to provide a personal cook, chauffeur, or other personal servants to any officer or employee of such department or agency.</content> </section> <section> <num value="413"><inline class="smallCaps">Sec</inline>. 413.</num> <content class="inline">None of the funds provided in this Act to any department or agency shall be obligated or expended to procure passenger automobiles as defined in 15 U.S.C. 2001 with an EPA estimated miles per gallon average of less than 22 miles per gallon.</content> </section> <section> <num value="414"><inline class="smallCaps">Sec</inline>. 414.</num> <content class="inline">None of the funds appropriated in title I of this<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> Act shall be used to enter into any<sidenote><p class="indent0 firstIndent0 fontsize8">Notice.</p></sidenote> new lease of real property if the estimated annual rental is more than $300,000 unless the Secretary submits, in writing, a report to the Committees on Appropriations of the Congress and a period of 30 days has expired following the date on which the report is received by the Committees on Appropriations.</content> </section> <section> <num value="415"><inline class="smallCaps">Sec</inline>. 415.</num> <subsection class="inline"><num value="a">(a)</num> <content>It is the sense of the Congress that, to the greatest extent practicable, all equipment and products purchased with funds made available in this Act should be American-made.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>In providing financial assistance to, or entering into any contract with, any entity using funds made available in this Act, the head of each Federal agency, to the greatest extent practicable, shall provide to such entity a notice describing the statement made in subsection (a) by the Congress.</content> </subsection> </section> <section> <num value="416"><inline class="smallCaps">Sec</inline>. 416.</num> <content class="inline">None of the funds appropriated in this Act may be used to implement any cap on reimbursements to grantees <page identifier="/us/stat/111/1384">111 STAT. 1384</page>for indirect costs, except as published in Office of Management and Budget Circular A–21.</content> </section> <section> <num value="417"><inline class="smallCaps">Sec</inline>. 417.</num> <content class="inline">Such sums as may be necessary for fiscal year 1998 pay raises for programs funded by this Act shall be absorbed within the levels appropriated in this Act.</content> </section> <section> <num value="418"><inline class="smallCaps">Sec</inline>. 418.</num> <content class="inline">None of the funds made available in this Act may be used for any program, project, or activity, when it is made known to the Federal entity or official to which the funds are made available that the program, project, or activity is not in compliance with any Federal law relating to risk assessment, the protection of private property rights, or unfunded mandates.</content> </section> <section> <num value="419"><inline class="smallCaps">Sec</inline>. 419.</num> <content class="inline">Corporations and agencies of the Department of Housing and Urban Development which are subject to the Government Corporation Control Act, as amended, are hereby authorized to make such expenditures, within the limits of funds and borrowing authority available to each such corporation or agency and in accord with law, and to make such contracts and commitments without regard to fiscal year limitations as provided by section 104 of the Act as may be necessary in carrying out the programs set forth in the budget for 1998 for such corporation or agency except as hereinafter provided: <proviso><i>Provided,</i> That collections of these corporations and agencies may be used for new loan or mortgage purchase commitments only to the extent expressly provided for in this Act (unless such loans are in support of other forms of assistance provided for in this or prior appropriations Acts), except that this proviso shall not apply to the mortgage insurance or guaranty operations of these corporations, or where loans or mortgage purchases are necessary to protect the financial interest of the United States Government.</proviso></content> </section> <section> <num value="420"><inline class="smallCaps">Sec</inline>. 420.</num> <content class="inline">Notwithstanding section 320(g) of the Federal Water Pollution Control Act (33 U.S.C. 1330(g)), funds made available pursuant to authorization under such section for fiscal year 1998 and prior fiscal years may be used for implementing comprehensive conservation and management plans.</content> </section> <section> <num value="421"><inline class="smallCaps">Sec</inline>. 421.</num><sidenote><p class="indent0 firstIndent0 fontsize8">Termination.</p></sidenote> <content class="inline">Such funds as may be necessary to carry out the orderly termination of the Office of Consumer Affairs shall be made available from funds appropriated to the Department of Health and Human Services for fiscal year 1998.</content> </section> <section> <num value="422"><inline class="smallCaps">Sec</inline>. 422.</num> <content class="inline">Notwithstanding any other provision of law, the term “qualified student loan” with respect to national service education awards shall mean any loan made directly to a student by the Alaska Commission on Postsecondary Education, in addition to other meanings under section 148(b)(7) of the National and Community Service Act.</content> </section> <num value="V">TITLE V—</num><sidenote><p class="indent0 firstIndent0 fontsize8">Multifamily Assisted Housing Reform and Affordability Act of 1997.</p></sidenote><heading>HUD MULTIFAMILY HOUSING REFORM</heading> <section> <num value="501">SEC. 501.</num> <heading>TABLE OF CONTENTS.</heading> <content>The table of contents for this title is as follows: <toc> <referenceItem role="title"><designator>TITLE V—</designator><label>HUD MULTIFAMILY HOUSING REFORM</label></referenceItem> <referenceItem role="section"><designator>Sec. 510.</designator> <label>Short title.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle A—</designator><label>FHA—Insured Multifamily Housing Mortgage and Housing Assistance Restructuring</label></referenceItem> <referenceItem role="section"><designator>Sec. 511.</designator> <label>Findings and purposes.</label></referenceItem> <referenceItem role="section"><designator>Sec. 512.</designator> <label>Definitions.</label></referenceItem> <referenceItem role="section"><designator>Sec. 513.</designator> <label>Authority of participating administrative entities.<page identifier="/us/stat/111/1385">111 STAT. 1385</page></label></referenceItem> <referenceItem role="section"><designator>Sec. 514.</designator> <label>Mortgage restructuring and rental assistance sufficiency plan.</label></referenceItem> <referenceItem role="section"><designator>Sec. 515.</designator> <label>Section 8 renewals and long-term affordability commitment by owner of project.</label></referenceItem> <referenceItem role="section"><designator>Sec. 516.</designator> <label>Prohibition on restructuring.</label></referenceItem> <referenceItem role="section"><designator>Sec. 517.</designator> <label>Restructuring tools.</label></referenceItem> <referenceItem role="section"><designator>Sec. 518.</designator> <label>Management standards.</label></referenceItem> <referenceItem role="section"><designator>Sec. 519.</designator> <label>Monitoring of compliance.</label></referenceItem> <referenceItem role="section"><designator>Sec. 520.</designator> <label>Reports to Congress.</label></referenceItem> <referenceItem role="section"><designator>Sec. 521.</designator> <label>GAO audit and review.</label></referenceItem> <referenceItem role="section"><designator>Sec. 522.</designator> <label>Regulations.</label></referenceItem> <referenceItem role="section"><designator>Sec. 523.</designator> <label>Technical and conforming amendments.</label></referenceItem> <referenceItem role="section"><designator>Sec. 524.</designator> <label>Section 8 contract renewals.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle B—</designator><label>Miscellaneous Provisions</label></referenceItem> <referenceItem role="section"><designator>Sec. 531.</designator> <label>Rehabilitation grants for certain insured projects.</label></referenceItem> <referenceItem role="section"><designator>Sec. 532.</designator> <label>GAO report on section 8 rental assistance for multifamily housing projects.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle C—</designator><label>Enforcement Provisions</label></referenceItem> <referenceItem role="section"><designator>Sec. 541.</designator> <label>Implementation.</label></referenceItem> <referenceItem role="section"><designator>Sec. 542.</designator> <label>Income verification.</label></referenceItem> <referenceItem role="part"><designator>PART 1—</designator><label>FHA SINGLE FAMILY AND MULTIFAMILY HOUSING</label></referenceItem> <referenceItem role="section"><designator>Sec. 551.</designator> <label>Authorization to immediately suspend mortgagees.</label></referenceItem> <referenceItem role="section"><designator>Sec. 552.</designator> <label>Extension of equity skimming to other single family and multifamily housing programs.</label></referenceItem> <referenceItem role="section"><designator>Sec. 553.</designator> <label>Civil money penalties against mortgagees, lenders, and other participants in FHA programs.</label></referenceItem> <referenceItem role="part"><designator>PART 2—</designator><label>FHA MULTIFAMILY PROVISIONS</label></referenceItem> <referenceItem role="section"><designator>Sec. 561.</designator> <label>Civil money penalties against general partners, officers, directors, and certain managing agents of multifamily projects.</label></referenceItem> <referenceItem role="section"><designator>Sec. 562.</designator> <label>Civil money penalties for noncompliance with section 8 HAP contracts.</label></referenceItem> <referenceItem role="section"><designator>Sec. 563.</designator> <label>Extension of double damages remedy.</label></referenceItem> <referenceItem role="section"><designator>Sec. 564.</designator> <label>Obstruction of Federal audits.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle D—</designator><label>Office of Multifamily Housing Assistance Restructuring</label></referenceItem> <referenceItem role="section"><designator>Sec. 571.</designator> <label>Establishment of Office of Multifamily Housing Assistance Restructuring.</label></referenceItem> <referenceItem role="section"><designator>Sec. 572.</designator> <label>Director.</label></referenceItem> <referenceItem role="section"><designator>Sec. 573.</designator> <label>Duty and authority of Director.</label></referenceItem> <referenceItem role="section"><designator>Sec. 574.</designator> <label>Personnel.</label></referenceItem> <referenceItem role="section"><designator>Sec. 575.</designator> <label>Budget and financial reports.</label></referenceItem> <referenceItem role="section"><designator>Sec. 576.</designator> <label>Limitation on subsequent employment.</label></referenceItem> <referenceItem role="section"><designator>Sec. 577.</designator> <label>Audits by GAO.</label></referenceItem> <referenceItem role="section"><designator>Sec. 578.</designator> <label>Suspension of program because of failure to appoint Director.</label></referenceItem> <referenceItem role="section"><designator>Sec. 579.</designator> <label>Termination.</label></referenceItem> </toc> </content></section> <section> <num value="510">SEC. 510.</num> <heading>SHORT TITLE.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1701">12 USC 1701 note</ref>.</p></sidenote> <content>This title may be cited as the “Multifamily Assisted Housing Reform and Affordability Act of 1997”.</content> </section> <subtitle> <num value="A">Subtitle A—</num><heading>FHA—Insured Multifamily Housing Mortgage and Housing Assistance Restructuring</heading> <section> <num value="511">SEC. 511.</num> <heading>FINDINGS AND PURPOSES.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>Congress finds that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>there exists throughout the Nation a need for decent, safe, and affordable housing;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>as of the date of enactment of this Act, it is estimated that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>the insured multifamily housing portfolio of the Federal Housing Administration consists of 14,000 rental properties, with an aggregate unpaid principal mortgage balance of $38,000,000,000; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>approximately 10,000 of these properties contain housing units that are assisted with project-based rental <page identifier="/us/stat/111/1386">111 STAT. 1386</page>assistance under section 8 of the United States Housing Act of 1937;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>FHA-insured multifamily rental properties are a major Federal investment, providing affordable rental housing to an estimated 2,000,000 low- and very low-income families;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>approximately 1,600,000 of these families live in dwelling units that are assisted with project-based rental assistance under section 8 of the United States Housing Act of 1937;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>a substantial number of housing units receiving projectbased assistance have rents that are higher than the rents of comparable, unassisted rental units in the same housing rental market;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>many of the contracts for project-based assistance will expire during the several years following the date of enactment of this Act;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <chapeau>it is estimated that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>if no changes in the terms and conditions of the contracts for project-based assistance are made before fiscal year 2000, the cost of renewing all expiring rental assistance contracts under section 8 of the United States Housing Act of 1937 for both project-based and tenant-based rental assistance will increase from approximately $3,600,000,000 in fiscal year 1997 to over $14,300,000,000 by fiscal year 2000 and some $22,400,000,000 in fiscal year 2006;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>of those renewal amounts, the cost of renewing project-based assistance will increase from $1,200,000,000 in fiscal year 1997 to almost $7,400,000,000 by fiscal year 2006; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>without changes in the manner in which projectbased rental assistance is provided, renewals of expiring contracts for project-based rental assistance will require an increasingly larger portion of the discretionary budget authority of the Department of Housing and Urban Development in each subsequent fiscal year for the foreseeable future;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8)</num> <content>absent new budget authority for the renewal of expiring rental contracts for project-based assistance, many of the FHA-insured multifamily housing projects that are assisted with project-based assistance are likely to default on their FHA-insured mortgage payments, resulting in substantial claims to the FHA General Insurance Fund and Special Risk Insurance Fund;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9)</num> <content>more than 15 percent of federally assisted multifamily housing projects are physically or financially distressed, including a number which suffer from mismanagement;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10)</num> <content>due to Federal budget constraints, the downsizing of the Department of Housing and Urban Development, and diminished administrative capacity, the Department lacks the ability to ensure the continued economic and physical wellbeing of the stock of federally insured and assisted multifamily housing projects;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="11">(11)</num> <chapeau>the economic, physical, and management problems facing the stock of federally insured and assisted multifamily housing projects will be best served by reforms that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>reduce the cost of Federal rental assistance, including project-based assistance, to these projects by reducing the debt service and operating costs of these projects while <page identifier="/us/stat/111/1387">111 STAT. 1387</page>retaining the low-income affordability and availability of this housing;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>address physical and economic distress of this housing and the failure of some project managers and owners of projects to comply with management and ownership rules and requirements; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>transfer and share many of the loan and contract administration functions and responsibilities of the Secretary to and with capable State, local, and other entities; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="12">(12)</num> <content>the authority and duties of the Secretary, not including the control by the Secretary of applicable accounts in the Treasury of the United States, may be delegated to State, local or other entities at the discretion of the Secretary, to the extent the Secretary determines, and for the purpose of carrying out this Act, so that the Secretary has the discretion to be relieved of processing and approving any document or action required by these reforms.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Purposes</inline>.—</heading><chapeau>Consistent with the purposes and requirements of the Government Performance and Results Act of 1993, the purposes of this subtitle are—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>to preserve low-income rental housing affordability and availability while reducing the long-term costs of project-based assistance;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>to reform the design and operation of Federal rental housing assistance programs, administered by the Secretary, to promote greater multifamily housing project operating and cost efficiencies;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>to encourage owners of eligible multifamily housing projects to restructure their FHA-insured mortgages and project-based assistance contracts in a manner that is consistent with this subtitle before the year in which the contract expires;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>to reduce the cost of insurance claims under the National Housing Act related to mortgages insured by the Secretary and used to finance eligible multifamily housing projects;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>to streamline and improve federally insured and assisted multifamily housing project oversight and administration;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>to resolve the problems affecting financially and physically troubled federally insured and assisted multifamily housing projects through cooperation with residents, owners, State and local governments, and other interested entities and individuals;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <content>to protect the interest of project owners and managers, because they are partners of the Federal Government in meeting the affordable housing needs of the Nation through the section 8 rental housing assistance program;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8)</num> <content>to protect the interest of tenants residing in the multifamily housing projects at the time of the restructuring for the housing; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9)</num> <content>to grant additional enforcement tools to use against those who violate agreements and program requirements, in order to ensure that the public interest is safeguarded and that Federal multifamily housing programs serve their intended purposes.<page identifier="/us/stat/111/1388">111 STAT. 1388</page></content></paragraph> </subsection> </section> <section> <num value="512">SEC. 512.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f note</ref>.</p></sidenote> <heading>DEFINITIONS.</heading> <chapeau>In this subtitle:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Comparable properties</inline>.—</heading><chapeau>The term “comparable properties” means properties in the same market areas, where practicable, that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>are similar to the eligible multifamily housing project as to neighborhood (including risk of crime), type of location, access, street appeal, age, property size, apartment mix, physical configuration, property and unit amenities, utilities, and other relevant characteristics; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>are not receiving project-based assistance.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Eligible multifamily housing project</inline>.—</heading><chapeau>The term “eligible multifamily housing project” means a property consisting of more than 4 dwelling units—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>with rents that, on an average per unit or per room basis, exceed the rent of comparable properties in the same market area, determined in accordance with guidelines established by the Secretary;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>that is covered in whole or in part by a contract for project-based assistance under—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>the new construction or substantial rehabilitation program under section 8(b)(2) of the United States Housing Act of 1937 (as in effect before October 1, 1983);</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>the property disposition program under section 8(b) of the United States Housing Act of 1937;</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>the moderate rehabilitation program under section 8(e)(2) of the United States Housing Act of 1937;</content></clause> <clause class="indent3 fontsize10"><num value="iv">(iv)</num> <content>the loan management assistance program under section 8 of the United States Housing Act of 1937;</content></clause> <clause class="indent3 fontsize10"><num value="v">(v)</num> <content>section 23 of the United States Housing Act of 1937 (as in effect before January 1, 1975);</content></clause> <clause class="indent3 fontsize10"><num value="vi">(vi)</num> <content>the rent supplement program under section 101 of the Housing and Urban Development Act of 1965; or</content></clause> <clause class="indent3 fontsize10"><num value="vii">(vii)</num> <content>section 8 of the United States Housing Act of 1937, following conversion from assistance under section 101 of the Housing and Urban Development Act of 1965; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>financed by a mortgage insured or held by the Secretary under the National Housing Act.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Expiring contract</inline>.—</heading><content>The term “expiring contract” means a project-based assistance contract attached to an eligible multifamily housing project which, under the terms of the contract, will expire.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Expiration date</inline>.—</heading><content>The term “expiration date” means the date on which an expiring contract expires.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <heading><inline class="smallCaps">Fair market rent</inline>.—</heading><content>The term “fair market rent” means the fair market rental established under section 8(c) of the United States Housing Act of 1937.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <heading><inline class="smallCaps">Low-income families</inline>.—</heading><content>The term “low-income families” has the same meaning as provided under section 3(b)(2) of the United States Housing Act of 1937.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <heading><inline class="smallCaps">Mortgage restructuring and rental assistance sufficiency plan</inline>.—</heading><content>The term “mortgage restructuring and <page identifier="/us/stat/111/1389">111 STAT. 1389</page>rental assistance sufficiency plan” means the plan as provided under section 514.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8)</num> <heading><inline class="smallCaps">Nonprofit organization</inline>.—</heading><chapeau>The term “nonprofit organization” means any private nonprofit organization that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>is organized under State or local laws;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>has no part of its net earnings inuring to the benefit of any member, founder, contributor, or individual; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>has a long-term record of service in providing or financing quality affordable housing for low-income families through relationships with public entities.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9)</num> <heading><inline class="smallCaps">Portfolio restructuring agreement</inline>.—</heading><content>The term “portfolio restructuring agreement” means the agreement entered into between the Secretary and a participating administrative entity, as provided under section 513.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10)</num> <heading><inline class="smallCaps">Participating administrative entity</inline>.—</heading><content>The term “participating administrative entity” means a public agency (including a State housing finance agency or a local housing agency), a nonprofit organization, or any other entity (including a law firm or an accounting firm) or a combination of such entities, that meets the requirements under section 513(b).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="11">(11)</num> <heading><inline class="smallCaps">Project-based assistance</inline>.—</heading><content>The term “project-based assistance” means rental assistance described in paragraph (2)(B) of this section that is attached to a multifamily housing project.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="12">(12)</num> <heading><inline class="smallCaps">Renewal</inline>.—</heading><content>The term “renewal” means the replacement of an expiring Federal rental contract with a new contract under section 8 of the United States Housing Act of 1937, consistent with the requirements of this subtitle.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="13">(13)</num> <heading><inline class="smallCaps">Secretary</inline>.—</heading><content>The term “Secretary” means the Secretary of Housing and Urban Development.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="14">(14)</num> <heading><inline class="smallCaps">State</inline>.—</heading><content>The term “State” has the same meaning as in section 104 of the Cranston-Gonzalez National Affordable Housing Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="15">(15)</num> <heading><inline class="smallCaps">Tenant-based assistance</inline>.—</heading><content>The term “tenant-based assistance” has the same meaning as in section 8(f) of the United States Housing Act of 1937.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="16">(16)</num> <heading><inline class="smallCaps">Unit of general local government</inline>.—</heading><content>The term “unit of general local government” has the same meaning as in section 104 of the Cranston-Gonzalez National Affordable Housing Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="17">(17)</num> <heading><inline class="smallCaps">Very low-income family</inline>.—</heading><content>The term “very low-income family” has the same meaning as in section 3(b) of the United States Housing Act of 1937.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="18">(18)</num> <heading><inline class="smallCaps">Qualified mortgagee</inline>.—</heading><chapeau>The term “qualified mortgagee” means an entity approved by the Secretary that is capable of servicing, as well as originating, FHA-insured mortgages, and that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>is not suspended or debarred by the Secretary;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>is not suspended or on probation imposed by the Mortgagee Review Board; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>is not in default under any Government National Mortgage Association obligation.</content></subparagraph> </paragraph> </section> <section> <num value="513">SEC. 513.</num> <heading>AUTHORITY OF PARTICIPATING ADMINISTRATIVE ENTITIES.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Participating Administrative Entities</inline>.—<page identifier="/us/stat/111/1390">111 STAT. 1390</page></heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Contracts.</p></sidenote> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Subject to subsection (b)(3), the Secretary shall enter into portfolio restructuring agreements with participating administrative entities for the implementation of mortgage restructuring and rental assistance sufficiency plans to restructure multifamily housing mortgages insured or held by the Secretary under the National Housing Act, in order to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>reduce the costs of expiring contracts for assistance under section 8 of the United States Housing Act of 1937;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>address financially and physically troubled projects; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>correct management and ownership deficiencies.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Portfolio restructuring agreements</inline>.—</heading><chapeau>Each portfolio restructuring agreement entered into under this subsection shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>be a cooperative agreement to establish the obligations and requirements between the Secretary and the participating administrative entity;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>identify the eligible multifamily housing projects or groups of projects for which the participating administrative entity is responsible for assisting in developing and implementing approved mortgage restructuring and rental assistance sufficiency plans under section 514;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>require the participating administrative entity to review and certify to the accuracy and completeness of the evaluation of rehabilitation needs required under section 514(e)(3) for each eligible multifamily housing project included in the portfolio restructuring agreement, in accordance with regulations promulgated by the Secretary;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>identify the responsibilities of both the participating administrative entity and the Secretary in implementing a mortgage restructuring and rental assistance sufficiency plan, including any actions proposed to be taken under section 516 or 517;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>require each mortgage restructuring and rental assistance sufficiency plan to be prepared in accordance with the requirements of section 514 for each eligible multifamily housing project;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F)</num> <content>include other requirements established by the Secretary, including a right of the Secretary to terminate the contract immediately for failure of the participating administrative entity to comply with any applicable requirement;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">(G)</num> <content>if the participating administrative entity is a State housing finance agency or a local housing agency, indemnify the participating administrative entity against lawsuits and penalties for actions taken pursuant to the agreement, excluding actions involving willful misconduct or negligence;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">(H)</num> <content>include compensation for all reasonable expenses incurred by the participating administrative entity necessary to perform its duties under this subtitle; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="I">(I)</num> <content>include, where appropriate, incentive agreements with the participating administrative entity to reward superior performance in meeting the purposes of this Act.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Selection of Participating Administrative Entity</inline>.—<page identifier="/us/stat/111/1391">111 STAT. 1391</page></heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Selection criteria</inline>.—</heading><chapeau>The Secretary shall select a participating administrative entity based on whether, in the determination of the Secretary, the participating administrative entity—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>has demonstrated experience in working directly with residents of low-income housing projects and with tenants and other community-based organizations;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>has demonstrated experience with and capacity for multifamily restructuring and multifamily financing (which may include risk-sharing arrangements and restructuring eligible multifamily housing properties under the fiscal year 1997 Federal Housing Administration multifamily housing demonstration program);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>has a history of stable, financially sound, and responsible administrative performance (which may include the management of affordable low-income rental housing);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>has demonstrated financial strength in terms of asset quality, capital adequacy, and liquidity;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>has demonstrated that it will carry out the specific transactions and other responsibilities under this subtitle in a timely, efficient, and cost-effective manner; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F)</num> <content>meets other criteria, as determined by the Secretary.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Selection</inline>.—</heading><chapeau>If more than 1 interested entity meets the qualifications and selection criteria for a participating administrative entity, the Secretary may select the entity that demonstrates, as determined by the Secretary, that it will—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <chapeau>provide the most timely, efficient, and cost-effective—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>restructuring of the mortgages covered by the portfolio restructuring agreement; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>administration of the section 8 project-based assistance contract, if applicable; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>protect the public interest (including the long-term provision of decent low-income affordable rental housing and protection of residents, communities, and the American taxpayer).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Partnerships</inline>.—</heading><content>For the purposes of any participating administrative entity applying under this subsection, participating administrative entities are encouraged to develop partnerships with each other and with nonprofit organizations, if such partnerships will further the participating administrative entity’s ability to meet the purposes of this Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Alternative administrators</inline>.—</heading><chapeau>With respect to any eligible multifamily housing project for which a participating administrative entity is unavailable, or should not be selected to carry out the requirements of this subtitle with respect to that multifamily housing project for reasons relating to the selection criteria under paragraph (1), the Secretary shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>carry out the requirements of this subtitle with respect to that eligible multifamily housing project; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>contract with other qualified entities that meet the requirements of paragraph (1) to provide the authority to carry out all or a portion of the requirements of this subtitle with respect to that eligible multifamily housing project.<page identifier="/us/stat/111/1392">111 STAT. 1392</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <heading><inline class="smallCaps">Priority for public agencies as participating administrative entities</inline>.—</heading><content>The Secretary shall provide a reasonable period during which the Secretary will consider proposals only from State housing finance agencies or local housing agencies, and the Secretary shall select such an agency without considering other applicants if the Secretary determines that the agency is qualified. The period shall be of sufficient duration for the Secretary to determine whether any State housing finance agencies or local housing agencies are<sidenote><p class="indent0 firstIndent0 fontsize8">Notification.</p></sidenote> interested and Qualified. Not later than the end of the period, the Secretary shall notify the State housing finance agency or the local housing agency regarding the status of the proposal and, if the proposal is rejected, the reasons for the rejection and an opportunity for the applicant to respond.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <heading><inline class="smallCaps">State and local portfolio requirements</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If the housing finance agency of a State is selected as the participating administrative entity, that agency shall be responsible for such eligible multifamily housing projects in that State as may be agreed upon by the participating administrative entity and the Secretary. If a local housing agency is selected as the participating administrative entity, that agency shall be responsible for such eligible multifamily housing projects in the jurisdiction of the agency as may be agreed upon by the participating administrative entity and the Secretary.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Nondelegation</inline>.—</heading><content>Except with the prior approval of the Secretary, a participating administrative entity may not delegate or transfer responsibilities and functions under this subtitle to 1 or more entities.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <heading><inline class="smallCaps">Private entity requirements</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If a for-profit entity is selected as the participating administrative entity, that entity shall be required to enter into a partnership with a public purpose entity (including the Department).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Prohibition</inline>.—</heading><content>No private entity shall share, participate in, or otherwise benefit from any equity created, received, or restructured as a result of the portfolio restructuring agreement.</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="514">SEC. 514.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f note</ref>.</p></sidenote> <heading>MORTGAGE RESTRUCTURING AND RENTAL ASSISTANCE SUFFICIENCY PLAN.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Development of procedures and requirements</inline>.—</heading><content>The Secretary shall develop procedures and requirements for the submission of a mortgage restructuring and rental assistance sufficiency plan for each eligible multifamily housing project with an expiring contract.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Terms and conditions</inline>.—</heading><content>Each mortgage restructuring and rental assistance sufficiency plan submitted under this subsection shall be developed by the participating administrative entity, in cooperation with an owner of an eligible multifamily housing project and any servicer for the mortgage that is a qualified mortgagee, under such terms and conditions as the Secretary shall require.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Consolidation</inline>.—</heading><content>Mortgage restructuring and rental assistance sufficiency plans submitted under this subsection <page identifier="/us/stat/111/1393">111 STAT. 1393</page>may be consolidated as part of an overall strategy for more than 1 property.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Notice Requirements</inline>.—</heading><content>The Secretary shall establish notice procedures and hearing requirements for tenants and owners concerning the dates for the expiration of project-based assistance contracts for any eligible multifamily housing project.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Extension of Contract Term</inline>.—</heading><content>Subject to agreement by a project owner, the Secretary may extend the term of any expiring contract or provide a section 8 contract with rent levels set in accordance with subsection (g) for a period sufficient to facilitate the implementation of a mortgage restructuring and rental assistance sufficiency plan, as determined by the Secretary.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Tenant Rent Protection</inline>.—</heading><content>If the owner of a project with<sidenote><p class="indent0 firstIndent0 fontsize8">Notification.</p></sidenote> an expiring Federal rental assistance contract does not agree to extend the contract, not less than 12 months prior to terminating the contract, the project owner shall provide written notice to the Secretary and the tenants and the Secretary shall make tenant-based assistance available to tenants residing in units assisted under the expiring contract at the time of expiration.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Mortgage Restructuring and Rental Assistance Sufficiency Plan</inline>.—</heading><chapeau>Each mortgage restructuring and rental assistance sufficiency plan shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>except as otherwise provided, restructure the project-based assistance rents for the eligible multifamily housing project in a manner consistent with subsection (g), or provide for tenant-based assistance in accordance with section 515;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>allow for rent adjustments by applying an operating cost adjustment factor established under guidelines established by the Secretary;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>require the owner or purchaser of an eligible multifamily housing project to evaluate the rehabilitation needs of the project, in accordance with regulations of the Secretary, and notify the participating administrative entity of the rehabilitation needs;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>require the owner or purchaser of the project to provide or contract for competent management of the project;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <chapeau>require the owner or purchaser of the project to take such actions as may be necessary to rehabilitate, maintain adequate reserves, and to maintain the project in decent and safe condition, based on housing quality standards established by—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>the Secretary; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>local housing codes or codes adopted by public housing agencies that—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>meet or exceed housing quality standards established by the Secretary; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>do not severely restrict housing choice;</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <chapeau>require the owner or purchaser of the project to maintain affordability and use restrictions in accordance with regulations promulgated by the Secretary, for a term of not less than 30 years which restrictions shall be—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>contained in a legally enforceable document recorded in the appropriate records; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>consistent with the long-term physical and financial viability and character of the project as affordable housing;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <content>include a certification by the participating administrative entity that the restructuring meets subsidy layering <page identifier="/us/stat/111/1394">111 STAT. 1394</page>requirements established by the Secretary by regulation for purposes of this subtitle;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8)</num> <content>require the owner or purchaser of the project to meet such other requirements as the Secretary determines to be appropriate; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9)</num> <content>prohibit the owner from refusing to lease a reasonable number of units to holders of certificates and vouchers under section 8 of the United States Housing Act of 1937 because of the status of the prospective tenants as certificate and voucher holders.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Tenant and Other Participation and Capacity Building</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Procedures</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall establish procedures to provide an opportunity for tenants of the project, residents of the neighborhood, the local government, and other affected parties to participate effectively and on a timely basis in the restructuring process established by this subtitle.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Coverage</inline>.—</heading><content>These procedures shall take into account the need to provide tenants of the project, residents of the neighborhood, the local government, and other affected parties timely notice of proposed restructuring actions and appropriate access to relevant information about restructuring activities. To the extent practicable and consistent with the need to accomplish project restructuring in an efficient manner, the procedures shall give all such parties an opportunity to provide comments to the participating administrative entity in writing, in meetings, or in another appropriate manner (which comments shall be taken into consideration by the participating administrative entity).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Required consultation</inline>.—</heading><chapeau>The procedures developed pursuant to paragraph (1) shall require consultation with tenants of the project, residents of the neighborhood, the local government, and other affected parties, in connection with at least the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>the mortgage restructuring and rental assistance sufficiency plan;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>any proposed transfer of the project; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>the rental assistance assessment plan pursuant to section 515(c).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Funding</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary may provide not more than $10,000,000 annually in funding from which the Secretary may make obligations to tenant groups, nonprofit organizations, and public entities for building the capacity of tenant organizations, for technical assistance in furthering any of the purposes of this subtitle (including transfer of developments to new owners) and for tenant services, from those amounts made available under appropriations Acts for implementing this subtitle or previously made available for technical assistance in connection with the preservation of affordable rental housing for low-income persons.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Manner of providing</inline>.—</heading><content>Notwithstanding any other provision of law restricting the use of preservation <page identifier="/us/stat/111/1395">111 STAT. 1395</page>technical assistance funds, the Secretary may provide any funds made available under subparagraph (A) through existing technical assistance programs pursuant to any other Federal law, including the Low-Income Housing Preservation and Resident Homeownership Act of 1990 and the Multifamily Property Disposition Reform Act of 1994, or through any other means that the Secretary considers consistent with the purposes of this subtitle, without regard to any set-aside requirement otherwise applicable to those funds.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <heading><inline class="smallCaps">Prohibition</inline>.—</heading><content>None of the funds made available under subparagraph (A) may be used directly or indirectly to pay for any personal service, advertisement, telegram, telephone, letter, printed or written matter, or other device, intended or designed to influence in any manner a Member of Congress, to favor or oppose, by vote or otherwise, any legislation or appropriation by Congress, whether before or after the introduction of any bill or resolution proposing such legislation or appropriation.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g)</num> <heading><inline class="smallCaps">Rent Levels</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Except as provided in paragraph (2), each mortgage restructuring and rental assistance sufficiency plan pursuant to the terms, conditions, and requirements of this subtitle shall establish for units assisted with project-based assistance in eligible multifamily housing projects adjusted rent levels that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <chapeau>are equivalent to rents derived from comparable properties, if—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>the participating administrative entity makes the rent determination within a reasonable period of time; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>the market rent determination is based on not less than 2 comparable properties; or</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>if those rents cannot be determined, are equal to 90 percent of the fair market rents for the relevant market area.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Exceptions</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>A contract under this section may include rent levels that exceed the rent level described in paragraph (1) at rent levels that do not exceed 120 percent of the fair market rent for the market area (except that the Secretary may waive this limit for not more than five percent of all units subject to restructured mortgages in any fiscal year, based on a finding of special need), if the participating administrative entity—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>determines that the housing needs of the tenants and the community cannot be adequately addressed through implementation of the rent limitation required to be established through a mortgage restructuring and rental assistance sufficiency plan under paragraph (1); and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>follows the procedures under paragraph (3).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Exception rents</inline>.—</heading><content>In any fiscal year, a participating administrative entity may approve exception rents on not more than 20 percent of all units covered by the portfolio restructuring agreement with expiring contracts in <page identifier="/us/stat/111/1396">111 STAT. 1396</page>that fiscal year, except that the Secretary may waive this ceiling upon a finding of special need.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Rent levels for exception projects</inline>.—</heading><chapeau>For purposes of this section, a project eligible for an exception rent shall receive a rent calculated on the actual and projected costs of operating the project, at a level that provides income sufficient to support a budget-based rent that consists of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>the debt service of the project;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>the operating expenses of the project, as determined by the participating administrative entity, including—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>contributions to adequate reserves;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>the costs of maintenance and necessary rehabilitation; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>other eligible costs permitted under section 8 of the United States Housing Act of 1937;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>an adequate allowance for potential operating losses due to vacancies and failure to collect rents, as determined by the participating administrative entity;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>an allowance for a reasonable rate of return to the owner or purchaser of the project, as determined by the participating administrative entity, which may be established to provide incentives for owners or purchasers to meet benchmarks of quality for management and housing quality; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>other expenses determined by the participating administrative entity to be necessary for the operation of the project.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h)</num> <heading><inline class="smallCaps">Exemptions From Restructuring</inline>—</heading><chapeau>The following categories of projects shall not be covered by a mortgage restructuring and rental assistance sufficiency plan if—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>the primary financing or mortgage insurance for the multifamily housing project that is covered by that expiring contract was provided by a unit of State government or a unit of general local government (or an agency or instrumentality of a unit of a State government or unit of general local government);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>the project is a project financed under section 202 of the Housing Act of 1959 or section 515 of the Housing Act of 1949; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>the project has an expiring contract under section 8 of the United States Housing Act of 1937 entered into pursuant to section 441 of the Stewart B. McKinney Homeless Assistance Act.</content></paragraph> </subsection> </section> <section> <num value="515">SEC. 515.</num><sidenote><p class="indent0 firstIndent0 fontsize8">Contracts.</p><p class="indent0 fontsize10"><ref href="/us/usc/t42/s1437f">42 USC 1437f note</ref>.</p></sidenote> <heading>SECTION 8 RENEWALS AND LONG-TERM AFFORDABILITY COMMITMENT BY OWNER OF PROJECT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Section 8 Renewals of Restructured Projects</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Project-based assistance</inline>.—</heading><content>Subject to the availability of amounts provided in advance in appropriations Acts, and to the control of the Secretary of applicable accounts in the Treasury of the United States, with respect to an expiring section 8 contract on an eligible multifamily housing project to be renewed with project-based assistance (based on a determination under subsection (c)), the Secretary shall enter into contracts with participating administrative entities pursuant to which the participating administrative entity shall offer to renew or extend the contract, or the Secretary shall offer to <page identifier="/us/stat/111/1397">111 STAT. 1397</page>renew such contract, and the owner of the project shall accept the offer, if the initial renewal is in accordance with the terms and conditions specified in the mortgage restructuring and rental assistance sufficiency plan and the rental assistance assessment plan.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Tenant-based assistance</inline>.—</heading><content>Subject to the availability of amounts provided in advance in appropriations Acts and to the control of the Secretary of applicable accounts in the Treasury of the United States, with respect to an expiring section 8 contract on an eligible multifamily housing project to be renewed with tenant-based assistance (based on a determination under subsection (c)), the Secretary shall enter into contracts with participating administrative entities pursuant to which the participating administrative entity shall provide for the renewal of section 8 assistance on an eligible multifamily housing project with tenant-based assistance, or the Secretary shall provide for such renewal, in accordance with the terms and conditions specified in the mortgage restructuring and rental assistance sufficiency plan and the rental assistance assessment plan.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Required Commitment</inline>.—</heading><content>After the initial renewal of a section 8 contract pursuant to this section, the owner shall accept each offer made pursuant to subsection (a) to renew the contract, for the term of the affordability and use restrictions required by section 514(e)(6), if the offer to renew is on terms and conditions specified in the mortgage restructuring and rental assistance sufficiency plan.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Determination of Whether To Renew With Project-Based or Tenant-Based Assistance</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Mandatory renewal of project-based assistance</inline>.—</heading><chapeau>Section 8 assistance shall be renewed with project-based assistance, if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>the project is located in an area in which the participating administrative entity determines, based on housing market indicators, such as low vacancy rates or high absorption rates, that there is not adequate available and affordable housing or that the tenants of the project would not be able to locate suitable units or use the tenant-based assistance successfully;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>a predominant number of the units in the project are occupied by elderly families, disabled families, or elderly and disabled families;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>the project is held by a nonprofit cooperative ownership housing corporation or nonprofit cooperative housing trust.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Rental assistance assessment plan</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>With respect to any project that is not described in paragraph (1), the participating administrative entity shall, after consultation with the owner of the project, develop a rental assistance assessment plan to determine whether to renew assistance for the project with tenant-based assistance or project-based assistance.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Rental assistance assessment plan requirements</inline>.—</heading><chapeau>Each rental assistance assessment plan developed under this paragraph shall include an assessment of the impact of converting to tenant-based assistance and the impact of extending project-based assistance on—<page identifier="/us/stat/111/1398">111 STAT. 1398</page></chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>the ability of the tenants to find adequate, available, decent, comparable, and affordable housing in the local market;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>the types of tenants residing in the project (such as elderly families, disabled families, large families, and cooperative homeowners);</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>the local housing needs identified in the comprehensive housing affordability strategy, and local market vacancy trends;</content></clause> <clause class="indent3 fontsize10"><num value="iv">(iv)</num> <content>the cost of providing assistance, comparing the applicable payment standard to the project’s adjusted rent levels determined under section 514(g);</content></clause> <clause class="indent3 fontsize10"><num value="v">(v)</num> <content>the long-term financial stability of the project;</content></clause> <clause class="indent3 fontsize10"><num value="vi">(vi)</num> <content>the ability of residents to make reasonable choices about their individual living situations;</content></clause> <clause class="indent3 fontsize10"><num value="vii">(vii)</num> <content>the quality of the neighborhood in which the tenants would reside; and</content></clause> <clause class="indent3 fontsize10"><num value="viii">(viii)</num> <content>the project’s ability to compete in the marketplace.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <heading><inline class="smallCaps">Reports to director</inline>.—</heading><chapeau>Each participating administrative entity shall report regularly to the Director as defined in subtitle D, as the Director shall require, identifying—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>each eligible multifamily housing project for which the entity has developed a rental assistance assessment plan under this paragraph that determined that the tenants of the project generally supported renewal of assistance with tenant-based assistance, but under which assistance for the project was renewed with project-based assistance; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>each project for which the entity has developed such a plan under which the assistance is renewed using tenant-based assistance.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Eligibility for tenant-based assistance</inline>.—</heading><content>Subject to paragraph (4), with respect to any project that is not described in paragraph (1), if a participating administrative entity approves the use of tenant-based assistance based on a rental assistance assessment plan developed under paragraph (2), tenant-based assistance shall be provided to each assisted family (other than a family already receiving tenant-based assistance) residing in the project at the time the assistance described in section 512(2)(B) terminates.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Rents for families receiving tenant-based assistance</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Notwithstanding subsection (c)(1) or (o)(1) of section 8 of the United States Housing Act of 1937, in the case of any family described in paragraph (3) that resides in a project described in section 512(2)(B) in which the reasonable rent (which rent shall include any amount allowed for utilities and shall not exceed comparable market rents for the relevant housing market area) exceeds the fair market rent limitation or the payment standard, as applicable, the amount of assistance for the family shall be determined in accordance with subparagraph (B).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Maximum monthly rent; payment standard</inline>.—</heading><content>With respect to the certificate program under section 8(b) <page identifier="/us/stat/111/1399">111 STAT. 1399</page>of the United States Housing Act of 1937, the maximum monthly rent under the contract (plus any amount allowed for utilities) shall be such reasonable rent for the unit. With respect to the voucher program under section 8(o) of the United States Housing Act of 1937, the payment standard shall be deemed to be such reasonable rent for the unit.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <heading><inline class="smallCaps">Inapplicability of certain provision</inline>.—</heading><content>If a participating administrative entity approves renewal with project-based assistance under this subsection, section 8(d)(2) of the United States Housing Act of 1937 shall not apply.</content></paragraph> </subsection> </section> <section> <num value="516">SEC. 516.</num> <heading>PROHIBITION ON RESTRUCTURING.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Prohibition on Restructuring</inline>.—</heading><chapeau>The Secretary may elect not to consider any mortgage restructuring and rental assistance sufficiency plan or request for contract renewal if the Secretary or the participating administrative entity determines that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num><subparagraph class="inline"><num value="A">(A)</num> <content>the owner or purchaser of the project has engaged in material adverse financial or managerial actions or omissions with regard to such project; or</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B)</num> <content>the owner or purchaser of the project has engaged in material adverse financial or managerial actions or omissions with regard to other projects of such owner or purchaser that are federally assisted or financed with a loan from, or mortgage insured or guaranteed by, an agency of the Federal Government;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>material adverse financial or managerial actions or omissions include—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>materially violating any Federal, State, or local law or regulation with regard to this project or any other federally assisted project, after receipt of notice and an opportunity to cure;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>materially breaching a contract for assistance under section 8 of the United States Housing Act of 1937, after receipt of notice and an opportunity to cure;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>materially violating any applicable regulatory or other agreement with the Secretary or a participating administrative entity, after receipt of notice and an opportunity to cure;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>repeatedly and materially violating any Federal, State, or local law or regulation with regard to the project or any other federally assisted project;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>repeatedly and materially breaching a contract for assistance under section 8 of the United States Housing Act of 1937;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F)</num> <content>repeatedly and materially violating any applicable regulatory or other agreement with the Secretary or a participating administrative entity;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">(G)</num> <content>repeatedly failing to make mortgage payments at times when project income was sufficient to maintain and operate the property;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">(H)</num> <content>materially failing to maintain the property according to housing quality standards after receipt of notice and a reasonable opportunity to cure; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="I">(I)</num> <content>committing any actions or omissions that would warrant suspension or debarment by the Secretary;<page identifier="/us/stat/111/1400">111 STAT. 1400</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>the owner or purchaser of the property materially failed to follow the procedures and requirements of this subtitle, after receipt of notice and an opportunity to cure; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>the poor condition of the project cannot be remedied in a cost effective manner, as determined by the participating administrative entity.</content></paragraph> <continuation class="indent0 fontsize10">The term “owner” as used in this subsection, in addition to it having the same meaning as in section 8(f) of the United States Housing Act of 1937, also means an affiliate of the owner. The term “purchaser” as used in this subsection means any private person or entity, including a cooperative, an agency of the Federal Government, or a public housing agency, that, upon purchase of the project, would have the legal right to lease or sublease dwelling units in the project, and also means an affiliate of the purchaser. The terms “affiliate of the owner” and “affiliate of the purchaser” means any person or entity (including, but not limited to, a general partner or managing member, or an officer of either) that controls an owner or purchaser, is controlled by an owner or purchaser, or is under common control with the owner or purchaser. The term “control” means the direct or indirect power (under contract, equity ownership, the right to vote or determine a vote, or otherwise) to direct the financial, legal, beneficial or other interests of the owner or purchaser.</continuation> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Opportunity To Dispute Findings</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>During the 30-day period beginning on the date on which the owner or purchaser of an eligible multifamily housing project receives notice of a rejection under subsection (a) or of a mortgage restructuring and rental assistance sufficiency plan under section 514, the Secretary or participating administrative entity shall provide that owner or purchaser with an opportunity to dispute the basis for the rejection and an opportunity to cure.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Affirmation, modification, or reversal</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>After providing an opportunity to dispute under paragraph (1), the Secretary or the participating administrative entity may affirm, modify, or reverse any rejection under subsection (a) or rejection of a mortgage restructuring and rental assistance sufficiency plan under section 514.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Reasons for decision</inline>.—</heading><content>The Secretary or the participating administrative entity, as applicable, shall identify the reasons for any final decision under this paragraph.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <heading><inline class="smallCaps">Review process</inline>.—</heading><content>The Secretary shall establish an administrative review process to appeal any final decision under this paragraph.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Final Determination</inline>.—</heading><chapeau>Any final determination under this section shall not be subject to judicial review.</chapeau> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Displaced Tenants</inline>.—</heading><content>Subject to the availability of amounts provided in advance in appropriations Acts, for any low-income tenant that is residing in a project or receiving assistance under section 8 of the United States Housing Act of 1937 at the time of rejection under this section, that tenant shall be provided with tenant-based assistance and reasonable moving expenses, as determined by the Secretary.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Transfer of Property</inline>.—</heading><content>For properties disqualified from the consideration of a mortgage restructuring and rental assistance <page identifier="/us/stat/111/1401">111 STAT. 1401</page>sufficiency plan under this section in accordance with paragraph (1) or (2) of subsection (a) because of actions by an owner or purchaser, the Secretary shall establish procedures to facilitate the voluntary sale or transfer of a property as part of a mortgage restructuring and rental assistance sufficiency plan, with a preference for tenant organizations and tenant-endorsed community-based nonprofit and public agency purchasers meeting such reasonable qualifications as may be established by the Secretary.</content> </subsection> </section> <section> <num value="517">SEC. 517.</num> <heading>RESTRUCTURING TOOLS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Mortgage Restructuring</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>In this subtitle, an approved mortgage restructuring and rental assistance sufficiency plan shall include restructuring mortgages in accordance with this subsection to provide—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>a restructured or new first mortgage that is sustainable at rents at levels that are established in section 514(g); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>a second mortgage that is in an amount equal to no more than the difference between the restructured or new first mortgage and the indebtedness under the existing insured mortgage immediately before it is restructured or refinanced, provided that the amount of the second mortgage shall be in an amount that the Secretary or participating administrative entity determines can reasonably be expected to be repaid.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>The second mortgage shall bear interest at a rate not to exceed the applicable Federal rate as defined in section 1274(d) of the Internal Revenue Code of 1986. The term of the second mortgage shall be equal to the term of the restructured or new first mortgage.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Payments on the second mortgage shall be deferred when the first mortgage remains outstanding, except to the extent there is excess project income remaining after payment of all reasonable and necessary operating expenses (including deposits in a reserve for replacement), debt service on the first mortgage, and any other expenditures approved by the Secretary. At least 75 percent of any excess project income shall be applied to payments on the second mortgage, and the Secretary or the participating administrative entity may permit up to 25 percent to be paid to the project owner if the Secretary or participating administrative entity determines that the project owner meets benchmarks for management and housing quality.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <chapeau>The full amount of the second mortgage shall be immediately due and payable if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>the first mortgage is terminated or paid in full, except as otherwise provided by the holder of the second mortgage;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>the project is purchased and the second mortgage is assumed by any subsequent purchaser in violation of guidelines established by the Secretary; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>the Secretary provides notice to the project owner that such owner has failed to materially comply with any requirements of this section or the United States Housing Act of 1937 as those requirements apply to the project, with a reasonable opportunity for such owner to cure such failure.<page identifier="/us/stat/111/1402">111 STAT. 1402</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>The Secretary may modify the terms or forgive all or part of the second mortgage if the Secretary holds the second mortgage and if the project is acquired by a tenant organization or tenant-endorsed community-based nonprofit or public agency, pursuant to guidelines established by the Secretary.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Restructuring Tools</inline>.—</heading><chapeau>In addition to the requirements of subsection (a) and to the extent these actions are consistent with this section and with the control of the Secretary of applicable accounts in the Treasury of the United States, an approved mortgage restructuring and rental assistance sufficiency plan under this subtitle may include one or more of the following actions:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Full or partial payment of claim</inline>.—</heading><content>making a full payment of claim or partial payment of claim under section 541(b) of the National Housing Act, as amended by section 523(b) of this Act. Any payment under this paragraph shall not require the approval of a mortgagee;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Refinancing of debt</inline>.—</heading><content>refinancing of all or part of the debt on a project. If the refinancing involves a mortgage that will continue to be insured under the National Housing Act, the refinancing shall be documented through amendment of the existing insurance contract and not through a new insurance contract;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Mortgage insurance</inline>.—</heading><content>providing FHA multifamily mortgage insurance, reinsurance or other credit enhancement alternatives, including multifamily risk-sharing mortgage programs, as provided under section 542 of the Housing and Community Development Act of 1992. Any limitations on the number of units available for mortgage insurance under section 542 shall not apply to eligible multifamily housing projects. Any credit subsidy costs of providing mortgage insurance shall be paid from the Liquidating Accounts of the General Insurance Fund or the Special Risk Insurance Fund and shall not be subject to any limitation on appropriations;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Credit enhancement</inline>.—</heading><content>providing any additional State or local mortgage credit enhancements and risk-sharing arrangements that may be established with State or local housing finance agencies, the Federal Housing Finance Board, the Federal National Mortgage Association, and the Federal Home Loan Mortgage Corporation, to a modified or refinanced first mortgage;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <heading><inline class="smallCaps">Compensation of third parties</inline>.—</heading><content>consistent with the portfolio restructuring agreement, entering into agreements, incurring costs, or making payments, including incentive agreements designed to reward superior performance in meeting the purposes of this Act, as may be reasonably necessary, to compensate the participation of participating administrative entities and other parties in undertaking actions authorized by this subtitle. Upon request to the Secretary, participating administrative entities that are qualified under the United States Housing Act of 1937 to serve as contract administrators shall be the contract administrators under section 8 of the United States Housing Act of 1937 for purposes of any contracts entered into as part of an approved mortgage restructuring and rental assistance sufficiency plan. Subject to the availability of amounts provided in advance in appropriations Acts for administrative fees under section 8 of the United States <page identifier="/us/stat/111/1403">111 STAT. 1403</page>Housing Act of 1937, such amounts may be used to compensate participating administrative entities for compliance monitoring costs incurred under section 519;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <heading><inline class="smallCaps">Use of project accounts</inline>.—</heading><content>applying any residual receipts, replacement reserves, and any other project accounts not required for project operations, to maintain the long-term affordability and physical condition of the property or of other eligible multifamily housing projects. The participating administrative entity may expedite the acquisition of residual receipts, replacement reserves, or other such accounts, by entering into agreements with owners of housing covered by an expiring contract to provide an owner with a share of the receipts, not to exceed 10 percent, in accordance with guidelines established by the Secretary; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <heading><inline class="smallCaps">Rehabilitation needs</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Rehabilitation may be paid from the residual receipts, replacement reserves, or any other project accounts not required for project operations, or, as provided in appropriations Acts and subject to the control of the Secretary of applicable accounts in the Treasury of the United States, from budget authority provided for increases in the budget authority for assistance contracts under section 8 of the United States Housing Act of 1937, the rehabilitation grant program established under section 236 of the National Housing Act, as amended by section 531 of subtitle B of this Act, or through the debt restructuring transaction. Rehabilitation under this paragraph shall only be for the purpose of restoring the project to a non-luxury standard adequate for the rental market intended at the original approval of the project-based assistance.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Contribution</inline>.—</heading><content>Each owner or purchaser of a project to be rehabilitated under an approved mortgage restructuring and rental assistance sufficiency plan shall contribute, from non-project resources, not less than 25 percent of the amount of rehabilitation assistance received, except that the participating administrative entity may provide an exception from the requirement of this subparagraph for housing cooperatives.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Role of FNMA and FHLMC</inline>.—</heading><chapeau>Section 1335 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4565) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in paragraph (3), by striking “<quotedText>and</quotedText>” at the end;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>paragraph (4), by striking the period at the end and inserting “<quotedText>; and</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by striking “<quotedText>To meet</quotedText>” and inserting the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>To meet”; and</content> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>assist in maintaining the affordability of assisted units in eligible multifamily housing projects with expiring contracts, as defined under the Multifamily Assisted Housing Reform and Affordability Act of 1997.</content></paragraph> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Affordable Housing Goals</inline>.—</heading><content>Actions taken under subsection (a)(5) shall constitute part of the contribution of each entity in meeting its affordable housing goals under sections 1332, 1333, and 1334 for any fiscal year, as determined by the Secretary.”.<page identifier="/us/stat/111/1404">111 STAT. 1404</page></content> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Prohibition on Equity Sharing by the Secretary</inline>.—</heading><content>The Secretary is prohibited from participating in any equity agreement or profit-sharing agreement in conjunction with any eligible multifamily housing project.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Conflict of Interest Guidelines</inline>.—</heading><content>The Secretary may establish guidelines to prevent conflicts of interest by a participating administrative entity that provides, directly or through risk-sharing arrangements, any form of credit enhancement or financing pursuant to subsections (b)(3) or (b)(4) or to prevent conflicts of interest by any other person or entity under this subtitle.</content> </subsection> </section> <section> <num value="518">SEC. 518.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f note</ref>.</p></sidenote> <heading>MANAGEMENT STANDARDS.</heading> <content>Each participating administrative entity shall establish management standards, including requirements governing conflicts of interest between owners, managers, contractors with an identity of interest, pursuant to guidelines established by the Secretary and consistent with industry standards.</content> </section> <section> <num value="519">SEC. 519.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f note</ref>.</p></sidenote> <heading>MONITORING OF COMPLIANCE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Compliance Agreements</inline>.—</heading><paragraph class="inline"><num value="1">(1)</num> <chapeau>Pursuant to regulations issued by the Secretary under section 522(a), each participating administrative entity, through binding contractual agreements with owners and otherwise, shall ensure long-term compliance with the provisions of this subtitle. Each agreement shall, at a minimum, provide for—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>enforcement of the provisions of this subtitle; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>remedies for the breach of those provisions.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <content>If the participating administrative entity is not qualified under the United States Housing Act of 1937 to be a section 8 contract administrator or fails to perform its duties under the portfolio restructuring agreement, the Secretary shall have the right to enforce the agreement.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Periodic Monitoring</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Not less than annually, each participating administrative entity that is qualified to be the section 8 contract administrator shall review the status of all multifamily housing projects for which a mortgage restructuring and rental assistance sufficiency plan has been implemented.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Inspections</inline>.—</heading><content>Each review under this subsection shall include onsite inspection to determine compliance with housing codes and other requirements as provided in this subtitle and the portfolio restructuring agreements.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Administration</inline>.—</heading><content>If the participating administrative entity is not qualified under the United States Housing Act of 1937 to be a section 8 contract administrator, either the Secretary or a qualified State or local housing agency shall be responsible for the review required by this subsection.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Audit by the Secretary</inline>.—</heading><content>The Comptroller General of the United States, the Secretary, and the Inspector General of the Department of Housing and Urban Development may conduct an audit at any time of any multifamily housing project for which a mortgage restructuring and rental assistance sufficiency plan has been implemented.</content> </subsection> </section> <section> <num value="520">SEC. 520.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f note</ref>.</p></sidenote> <heading>REPORTS TO CONGRESS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Annual Review</inline>.—</heading><content>In order to ensure compliance with this subtitle, the Secretary shall conduct an annual review and report <page identifier="/us/stat/111/1405">111 STAT. 1405</page>to the Congress on actions taken under this subtitle and the status of eligible multifamily housing projects.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Semiannual Review</inline>.—</heading><content>Not less than semiannually during the 2-year period beginning on the date of the enactment of this Act and not less than annually thereafter, the Secretary shall submit reports to the Committee on Banking and Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate stating, for such periods, the total number of projects identified by participating administrative entities under each of clauses (i) and (ii) of section 515(c)(2)(C).</content> </subsection> </section> <section> <num value="521">SEC. 521.</num> <heading>GAO AUDIT AND REVIEW.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Initial Audit</inline>.—</heading><content>Not later than 18 months after the effective date of final regulations promulgated under this subtitle, the Comptroller General of the United States shall conduct an audit to evaluate eligible multifamily housing projects and the implementation of mortgage restructuring and rental assistance sufficiency plans.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Report</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Not later than 18 months after the audit conducted under subsection (a), the Comptroller General of the United States shall submit to Congress a report on the status of eligible multifamily housing projects and the implementation of mortgage restructuring and rental assistance sufficiency plans.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Contents</inline>.—</heading><chapeau>The report submitted under paragraph (1) shall include—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>a description of the initial audit conducted under subsection (a); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>recommendations for any legislative action to increase the financial savings to the Federal Government of the restructuring of eligible multifamily housing projects balanced with the continued availability of the maximum number of affordable low-income housing units.</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="522">SEC. 522.</num> <heading>REGULATIONS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Rulemaking and Implementation</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Interim regulations</inline>.—</heading><content>The Director shall issue such interim regulations as may be necessary to implement this subtitle and the amendments made by this subtitle with respect to eligible multifamily housing projects covered by contracts described in section 512(2)(B) that expire in fiscal year 1999 or thereafter. If, before the expiration of such period, the Director has not been appointed, the Secretary shall issue such interim regulations.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Final regulations</inline>.—</heading><content>The Director shall issue final regulations necessary to implement this subtitle and the amendments made by this subtitle with respect to eligible multifamily housing projects covered by contracts described in section 512(2)(B) that expire in fiscal year 1999 or thereafter before the later of: (A) the expiration of the 12-month period beginning upon the date of the enactment of this Act; and (B) the 3-month period beginning upon the appointment of the Director under subtitle D.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Factors for consideration</inline>.—</heading><chapeau>Before the publication of the final regulations under paragraph (2), in addition to public comments invited in connection with publication of the interim rule, the Secretary shall—<page identifier="/us/stat/111/1406">111 STAT. 1406</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <chapeau>seek recommendations on the implementation of sections 513(b) and 515(c)(1) from organizations representing—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>State housing finance agencies and local housing agencies;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>other potential participating administering entities;</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>tenants;</content></clause> <clause class="indent3 fontsize10"><num value="iv">(iv)</num> <content>owners and managers of eligible multifamily housing projects;</content></clause> <clause class="indent3 fontsize10"><num value="v">(v)</num> <content>States and units of general local government; and</content></clause> <clause class="indent3 fontsize10"><num value="vi">(vi)</num> <content>qualified mortgagees; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>convene not less than 3 public forums at which the organizations making recommendations under subparagraph (A) may express views concerning the proposed disposition of the recommendations.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> <heading><inline class="smallCaps">Transition Provision for Contracts Expiring in Fiscal Year 1998</inline>.—</heading><content>Notwithstanding any other provision of law, the Secretary shall apply all the terms of section 211 and section 212 of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997 (except for section 212(h)(1)(G) and the limitation in section 212(k)) contracts for project-based assistance that expire during fiscal year 1998 (in the same manner that such provisions apply to expiring contracts defined in section 212(a)(3) of such Act), except that section 517(a) of the Act shall apply to mortgages on projects subject to such contracts.</content> </subsection> </section> <section> <num value="523">SEC. 523.</num> <heading>TECHNICAL AND CONFORMING AMENDMENTS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8">42 USC 1437f note.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Calculation of Limit on Project-Based Assistance</inline>.—</heading><content>Section 8(d) of the United States Housing Act of 1937 (42 U.S.C. 14371(d)) is amended by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Calculation of limit</inline>.—</heading><content>Any contract entered into under section 514 of the Multifamily Assisted Housing Reform and Affordability Act of 1997 shall be excluded in computing the limit on project-based assistance under this subsection.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Partial Payment of Claims on Multifamily Housing Projects</inline>.—</heading><chapeau>Section 541 of the National Housing Act (12 U.S.C. 1735f-19) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subsection (a), in the subsection heading, by striking “<quotedText>Authority</quotedText>” and inserting “<quotedText>Defaulted Mortgages</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by redesignating subsection (b) as subsection (c); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by inserting after subsection (a) the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Existing Mortgages</inline>.—</heading><content>Notwithstanding any other provision of law, the Secretary, in connection with a mortgage restructuring under section 514 of the Multifamily Assisted Housing Reform and Affordability Act of 1997, may make a one time, nondefault partial payment of the claim under the mortgage insurance contract, which shall include a determination by the Secretary or the participating administrative entity, in accordance with the Multifamily Assisted Housing Reform and Affordability Act of 1997, of the market value of the project and a restructuring of the mortgage, under such terms and conditions as are permitted by section 517(a) of such Act.”.<page identifier="/us/stat/111/1407">111 STAT. 1407</page></content> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Reuse and Rescission of Certain Recaptured Budget Authority</inline>.—</heading><chapeau>Section 8(bb) of the United States Housing Act of 1937 (42 U.S.C. 1437flbb)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by inserting after “<quotedText>(bb)</quotedText>” the following: <quotedContent> <subsection class="indent0 fontsize10"> <heading>“<inline class="smallCaps">Transfer, Reuse, and Rescission of Budget Authority</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num><content>”; and</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting the following new paragraph at the end: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>Reuse and rescission of certain recaptured budget authority.—Notwithstanding paragraph (1), if a project-based assistance contract for an eligible multifamily housing project subject to actions authorized under title I is terminated or amended as part of restructuring under section 517 of the Multifamily Assisted Housing Reform and Affordability Act of 1997, the Secretary shall recapture the budget authority not required for the terminated or amended contract and use such amounts as are necessary to provide housing assistance for the same number of families covered by such contract for the remaining term of such contract, under a contract providing for project-based or tenant-based assistance. The amount of budget authority saved as a result of the shift to project-based or tenant-based assistance shall be rescinded.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Section 8 Contract Renewals</inline>.—</heading><content>Section 405(a) of the Balanced Budget Downpayment Act, I (42 U.S.C. 1437f note) is amended by striking “<quotedText>For</quotedText>” and inserting “<quotedText>Notwithstanding part 24 of title 24 of the Code of Federal Regulations, for</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Renewal Upon Request of Owner</inline>.—</heading><chapeau>Section 211(b)(3) of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997 (Public Law 104–204; 110 Stat. 2896) is amended—<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f note</ref>.</p></sidenote></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking the paragraph heading and inserting the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>Exemption of certain other projects.—”; and</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<quotedText>section 202 projects, section 811 projects and section 515 projects</quotedText>” and inserting “<quotedText>section 202 projects, section 515 projects, projects with contracts entered into pursuant to section 441 of the Stewart B. McKinney Homeless Assistance Act, and projects with rents that exceed 100 percent of fair market rent for the market area, but that are less than rents for comparable projects</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <heading><inline class="smallCaps">Extension of Demonstration Contract Period</inline>.—</heading><chapeau>Section 212(g) of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997 (Public Law 104–204) is amended—<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f note</ref>.</p></sidenote></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by inserting “<quotedText>(1)</quotedText>” after “(g)”; note.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting before the period at the end the following: “or in paragraph (2)”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <chapeau>The Secretary may renew a demonstration contract for an additional period of not to exceed 120 days, if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the contract was originally executed before February 1, 1997, and the Secretary determines, in the sole discretion of the Secretary, that the renewal period for the contract needs to exceed 1 year, due to delay of publication of the Secretary’s demonstration program guidelines until January 23, 1997 (not to exceed 21 projects); or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the contract was originally executed before October 1, 1997, in connection with a project that has been identified <page identifier="/us/stat/111/1408">111 STAT. 1408</page>for restructuring under the joint venture approach described in section VII.B.2. of the Secretary’s demonstration program guidelines, and the Secretary determines, in the sole discretion of the Secretary, that the renewal period for the contract needs to exceed 1 year, due to delay in implementation of the joint venture agreement required by the guidelines (not to exceed 25 projects).”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> </subsection> </section> <section> <num value="524">SEC. 524.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f note</ref>.</p></sidenote> <heading>SECTION 8 CONTRACT RENEWALS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Section 8 Contract Renewal Authority</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Notwithstanding part 24 of title 24 of the Code of Federal Regulations and subject to section 516 of this subtitle, for fiscal year 1999 and henceforth, the Secretary may use amounts available for the renewal of assistance under section 8 of the United States Housing Act of 1937, upon termination or expiration of a contract for assistance under section 8 (other than a contract for tenant-based assistance and notwithstanding section 8(v) of such Act for loan management assistance), to provide assistance under section 8 of such Act at rent levels that do not exceed comparable market rents for the market area. The assistance shall be provided in accordance with terms and conditions prescribed by the Secretary.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Exception projects</inline>.—</heading><chapeau>Notwithstanding paragraph (1), upon the request of the owner, the Secretary shall renew an expiring contract in accordance with terms and conditions prescribed by the Secretary at the lesser of: (i) existing rents, adjusted by an operating cost adjustment factor established by the Secretary; (ii) a level that provides income sufficient to support a budget-based rent (including a budget-based rent adjustment if justified by reasonable and expected operating expenses); or (iii) in the case of a contract under the moderate rehabilitation program, other than a moderate rehabilitation contract under section 441 of the Stewart B. McKinney Homeless Assistance Act, the base rent adjusted by an operating cost adjustment factor established by the Secretary, for the following categories of multifamily housing projects—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>projects for which the primary financing or mortgage insurance was provided by a unit of State government or a unit of general local government (or an agency or instrumentality of either) and is not insured under the National Housing Act;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>projects for which the primary financing was provided by a unit of State government or a unit or general local government (or an agency or instrumentality of either) and the financing involves mortgage insurance under the National Housing Act, such that the implementation of a mortgage restructuring and rental assistance sufficiency plan under this Act is in conflict with applicable law or agreements governing such financing;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>projects financed under section 202 of the Housing Act of 1959 or section 515 of the Housing Act of 1949;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>projects that have an expiring contract under section 8 of the United States Housing Act of 1937 pursuant to section 441 of the Stewart B. McKinney Homeless Assistance Act; and<page identifier="/us/stat/111/1409">111 STAT. 1409</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>projects that do not qualify as eligible multifamily housing projects pursuant to section 512(2) of this subtitle.</content></subparagraph> </paragraph> </subsection> </section> </subtitle> <subtitle> <num value="B">Subtitle B—</num><heading>Miscellaneous Provisions</heading> <section> <num value="531">SEC. 531.</num> <heading>REHABILITATION GRANTS FOR CERTAIN INSURED PROJECTS.</heading> <content>Section 236 of the National Housing Act (12 U.S.C. 1715z–1) is amended by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="s">“(s)</num> <heading><inline class="smallCaps">Grant Authority</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary may make grants for the capital costs of rehabilitation to owners of projects that meet the eligibility and other criteria set forth in, and in accordance with, this subsection.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Project eligibility</inline>.—</heading><chapeau>A project may be eligible for capital grant assistance under this subsection—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the project is or was insured under any provision of title II of the National Housing Act;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the project was assisted under section 8 of the United States Housing Act of 1937 on the date of enactment of the Multifamily Assisted Housing Reform and Affordability Act of 1997; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>the project mortgage was not held by a State agency as of the date of enactment of the Multifamily Assisted Housing Reform and Affordability Act of 1997;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>if the project owner agrees to maintain the housing quality standards as required by the Secretary;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num><clause class="inline"><num value="i">(i)</num> <content>if the Secretary determines that the owner or purchaser of the project has not engaged in material adverse financial or managerial actions or omissions with regard to such project; or</content></clause> <clause class="indent2 fontsize10"><num value="ii">“(ii)</num> <content>if the Secretary elects to make such determination, that the owner or purchaser of the project has not engaged in material adverse financial or managerial actions or omissions with regard to other projects of such owner or purchaser that are federally assisted or financed with a loan from, or mortgage insured or guaranteed by, an agency of the Federal Government;</content></clause> <clause class="indent2 fontsize10"><num value="iii">“(iii)</num> <chapeau>material adverse financial or managerial actions or omissions, as the terms are used in this subparagraph, include—</chapeau> <subclause class="indent3 fontsize10"><num value="I">“(I)</num> <content>materially violating any Federal, State, or local law or regulation with regard to this project or any other federally assisted project, after receipt of notice and an opportunity to cure;</content></subclause> <subclause class="indent3 fontsize10"><num value="II">“(II)</num> <content>materially breaching a contract for assistance under section 8 of the United States Housing Act of 1937, after receipt of notice and an opportunity to cure;</content></subclause> <subclause class="indent3 fontsize10"><num value="III">“(III)</num> <content>materially violating any applicable regulatory or other agreement with the Secretary or a participating administrative entity, after receipt of notice and an opportunity to cure;</content></subclause> <subclause class="indent3 fontsize10"><num value="IV">“(IV)</num> <content>repeatedly failing to make mortgage payments at times when project income was sufficient to maintain and operate the property;<page identifier="/us/stat/111/1410">111 STAT. 1410</page></content></subclause> <subclause class="indent3 fontsize10"><num value="V">“(V)</num> <content>materially failing to maintain the property according to housing quality standards after receipt of notice and a reasonable opportunity to cure; or</content></subclause> <subclause class="indent3 fontsize10"><num value="VI">“(VI)</num> <content>committing any act or omission that would warrant suspension or debarment by the Secretary; and</content></subclause> </clause> <clause class="indent2 fontsize10"><num value="iv">“(iv)</num> <content>the term ‘owner’ as used in this subparagraph, in addition to it having the same meaning as in section 8(f) of the United States Housing Act of 1937, also means an affiliate of the owner; the term ‘purchaser’ as used in this subsection means any private person or entity, including a cooperative, an agency of the Federal Government, or a public housing agency, that, upon purchase of the project, would have the legal right to lease or sublease dwelling units in the project, and also means an affiliate of the purchaser; the terms ‘affiliate of the owner’ and ‘affiliate of the purchaser’ means any person or entity (including, but not limited to, a general partner or managing member, or an officer of either) that controls an owner or purchaser, is controlled by an owner or purchaser, or is under common control with the owner or purchaser; the term ‘control’ means the direct or indirect power (under contract, equity ownership, the right to vote or determine a vote, or otherwise) to direct the financial, legal, beneficial or other interests of the owner or purchaser; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <chapeau>if the project owner demonstrates to the satisfaction of the Secretary—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>using information in a comprehensive needs assessment, that capital grant assistance is needed for rehabilitation of the project; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>that project income is not sufficient to support such rehabilitation.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Eligible purposes</inline>.—</heading><chapeau>The Secretary may make grants to the owners of eligible projects for the purposes of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>payment into project replacement reserves;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>debt service payments on non-Federal rehabilitation loans; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>payment of nonrecurring maintenance and capital improvements, under such terms and conditions as are determined by the Secretary.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Grant agreement</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall provide in any grant agreement under this subsection that the grant shall e terminated if the project fails to meet housing quality standards, as applicable on the date of enactment of the Multifamily Assisted Housing Reform and Affordability Act of 1997, or any successor standards for the physical conditions of projects, as are determined by the Secretary.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Affordability and use clauses</inline>.—</heading><content>The Secretary shall include in a grant agreement under this subsection a requirement for the project owners to maintain such affordability and use restrictions as the Secretary determines to be appropriate.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Other terms</inline>.—</heading><content>The Secretary may include in a grant agreement under this subsection such other terms and conditions as the Secretary determines to be necessary.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Delegation</inline>.—<page identifier="/us/stat/111/1411">111 STAT. 1411</page></heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In addition to the authorities set forth in subsection (p), the Secretary may delegate to State and local governments the responsibility for the administration of grants under this subsection. Any such government may carry out such delegated responsibilities directly or under contracts.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Administration costs</inline>.—</heading><content>In addition to other eligible purposes, amounts of grants under this subsection may be made available for costs of administration under subparagraph (A).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Funding</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of carrying out this subsection, the Secretary may make available amounts that are unobligated amounts for contracts for interest reduction payments—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>that were previously obligated for contracts for interest reduction payments under this section until the insured mortgage under this section was extinguished;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>that become available as a result of the outstanding principal balance of a mortgage having been written down;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>that are uncommitted balances within the limitation on maximum payments that may have been, before the date of enactment of the Multifamily Assisted Housing Reform and Affordability Act of 1997, permitted in any fiscal year; or</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>that become available from any other source.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Liquidation authority</inline>.—</heading><content>The Secretary may liquidate obligations entered into under this subsection under section 1305(10) of title 31, United States Code.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Capital grants</inline>.—</heading><content>In making capital grants under the terms of this subsection, using the amounts that the Secretary has recaptured from contracts for interest reduction payments, the Secretary shall ensure that the rates and amounts of outlays do not at any time exceed the rates and amounts of outlays that would have been experienced if the insured mortgage had not been extinguished or the principal amount had not been written down, and the interest reduction payments that the Secretary has recaptured had continued in accordance with the terms in effect immediately prior to such extinguishment or writedown.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></section> <section> <num value="532">SEC. 532.</num> <heading>GAO REPORT ON SECTION 8 RENTAL ASSISTANCE FOR MULTIFAMILY HOUSING PROJECTS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f note</ref>.</p></sidenote> <chapeau>Not later than the expiration of the 18-month period beginning on the date of the enactment of this Act, the Comptroller General of the United States shall submit a report to the Congress analyzing—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>the housing projects for which project-based assistance is provided under section 8 of the United States Housing Act of 1937, but which are not subject to a mortgage insured or held by the Secretary under the National Housing Act;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>how State and local housing finance agencies have benefited financially from the rental assistance program under section 8 of the United States Housing Act of 1937, including <page identifier="/us/stat/111/1412">111 STAT. 1412</page>any benefits from fees, bond financings, and mortgage refinancings; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>the extent and effectiveness of State and local housing finance agencies oversight of the physical and financial management and condition of multifamily housing projects for which project-based assistance is provided under section 8 of the United States Housing Act of 1937.</content></paragraph> </section> </subtitle> <subtitle> <num value="C">Subtitle C—</num><heading>Enforcement Provisions</heading> <section> <num value="541">SEC. 541.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1735f–14">12 USC 1735f–14 note</ref>.</p></sidenote> <heading>IMPLEMENTATION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Issuance of Necessary Regulations</inline>.—</heading><content>Notwithstanding section 7(o) of the Department of Housing and Urban Development Act or part 10 of title 24, Code of Federal Regulations (as in existence on the date of enactment of this Act), the Secretary shall issue such regulations as the Secretary determines to be necessary to implement this subtitle and the amendments made by this subtitle in accordance with section 552 or 553 of title 5, United States Code, as determined by the Secretary.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Use of Existing Regulations</inline>.—</heading><content>In implementing any provision of this subtitle, the Secretary may, in the discretion of the Secretary, provide for the use of existing regulations to the extent appropriate, without rulemaking.</content> </subsection> </section> <section> <num value="542">SEC. 542.</num> <heading>INCOME VERIFICATION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Reinstitution of Requirements Regarding HUD Access to Certain Information of State Agencies</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s503">42 USC 503</ref>.</p></sidenote> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 303(i) of the Social Security Act is amended by striking paragraph (5).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s503">42 USC 503 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendment made by this subsection shall apply to any request for information made after the date of the enactment of this Act.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Repeal of Termination Regarding Housing Assistance Programs</inline>.—</heading><content>Section 6103(l)(7)(D) of the Internal Revenue Code <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6103">26 USC 6103</ref>.</p></sidenote>of 1986 is amended by striking the last sentence.</content> </subsection> </section> <part> <num value="1">Part 1—</num><heading>FHA Single Family and Multifamily Housing</heading> <section> <num value="551">SEC. 551.</num> <heading>AUTHORIZATION TO IMMEDIATELY SUSPEND MORTGAGEES.</heading> <content>Section 202(c)(3)(C) of the National Housing Act (12 U.S.C. 1708(c)(3)(C)) is amended by inserting after the first sentence the following: “Notwithstanding paragraph (4)(A), a suspension shall be effective upon issuance by the Board if the Board determines that there exists adequate evidence that immediate action is required to protect the financial interests of the Department or the public.”.</content> </section> <section> <num value="552">SEC. 552.</num> <heading>EXTENSION OF EQUITY SKIMMING TO OTHER SINGLE FAMILY AND MULTIFAMILY HOUSING PROGRAMS.</heading> <content>Section 254 of the National Housing Act (12 U.S.C. 1715z-19) is amended to read as follows: <quotedContent> <section> <num value="254">“SEC. 254.</num> <heading>EQUITY SKIMMING PENALTY.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Whoever, as an owner, agent, or manager, or who is otherwise in custody, control, or possession of a multifamily project or a 1- to 4-family residence that is security for a <page identifier="/us/stat/111/1413">111 STAT. 1413</page>mortgage note that is described in subsection (b), willfully uses or authorizes the use of any part of the rents, assets, proceeds, income, or other funds derived from property covered by that mortgage note for any purpose other than to meet reasonable and necessary expenses that include expenses approved by the Secretary if such approval is required, in a period during which the mortgage note is in default or the project is in a nonsurplus cash position, as defined by the regulatory agreement covering the property, or the mortgagor has failed to comply with the provisions of such other form of regulatory control imposed by the Secretary, shall be fined not more than $500,000, imprisoned not more than 5 years, or both.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Mortgage Notes Described</inline>.—</heading><chapeau>For purposes of subsection (a), a mortgage note is described in this subsection if it—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>is insured, acquired, or held by the Secretary pursuant to this Act;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>is made pursuant to section 202 of the Housing Act of 1959 (including property still subject to section 202 program requirements that existed before the date of enactment of the Cranston-Gonzalez National Affordable Housing Act); or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>is insured or held pursuant to section 542 of the Housing and Community Development Act of 1992, but is not reinsured under section 542 of the Housing and Community Development Act of 1992.”.</content></paragraph> </subsection> </section> </quotedContent> </content></section> <section> <num value="553">SEC. 553.</num> <heading>CIVIL MONEY PENALTIES AGAINST MORTGAGEES, LENDERS, AND OTHER PARTICIPANTS IN FHA PROGRAMS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Change to Section Title</inline>.—</heading><content>Section 536 of the National Housing Act (12 U.S.C. 1735f-14) is amended by striking the section heading and the section designation and inserting the following: <quotedContent> <section> <num value="536">“SEC. 536.</num> <heading>CIVIL MONEY PENALTIES AGAINST MORTGAGEES, LENDERS, AND OTHER PARTICIPANTS IN FHA PROGRAMS.”.</heading> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Expansion of Persons Eligible for Penalty</inline>.—</heading><chapeau>Section 536(a) of the National Housing Act (12 U.S.C. 1735f-14(a)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in paragraph (1), by striking the first sentence and inserting the following: “If a mortgagee approved under the Act, a lender holding a contract of insurance under title I, or a principal, officer, or employee of such mortgagee or lender, or other person or entity participating in either an insured mortgage or title I loan transaction under this Act or providing assistance to the borrower in connection with any such loan, including sellers of the real estate involved, borrowers, closing agents, title companies, real estate agents, mortgage brokers, appraisers, loan correspondents and dealers, knowingly and materially violates any applicable provision of subsection (b), the Secretary may impose a civil money penalty on the mortgagee or lender, or such other person or entity, in accordance with this section. The penalty under this paragraph shall be in addition to any other available civil remedy or any available criminal penalty, and may be imposed whether or not the Secretary imposes other administrative sanctions.”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>in paragraph (2)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in the first sentence, by inserting “<quotedText>or such other person or entity</quotedText>” after “lender”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in the second sentence, by striking “<quotedText>provision</quotedText>” and inserting “<quotedText>the provisions</quotedText>”.<page identifier="/us/stat/111/1414">111 STAT. 1414</page></content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Additional Violations for Mortgagees, Lenders, and Other Participants in FHA Programs</inline>.—</heading><chapeau>Section 536(b) of the National Housing Act (12 U.S.C. 1735f–14(b)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by redesignating paragraph (2) as paragraph (3);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting after paragraph (1) the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <chapeau>The Secretary may impose a civil money penalty under subsection (a) for any knowing and material violation by a principal, officer, or employee of a mortgagee or lender, or other participants in either an insured mortgage or title I loan transaction under this Act or provision of assistance to the borrower in connection with any such loan, including sellers of the real estate involved, borrowers, closing agents, title companies, real estate agents, mortgage brokers, appraisers, loan correspondents, and dealers for—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>submission to the Secretary of information that was false, in connection with any mortgage insured under this Act, or any loan that is covered by a contract of insurance under title I of this Act;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>falsely certifying to the Secretary or submitting to the Secretary a false certification by another person or entity; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>failure by a loan correspondent or dealer to submit to the Secretary information which is required by regulations or directives in connection with any loan that is covered by a contract of insurance under title I.”; and (3) in paragraph (3), as redesignated, by striking “<quotedText>or paragraph (1)(F)</quotedText>” and inserting “<quotedText>or (F), or paragraph (2)(A), (B), or (C)</quotedText>”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Conforming and Technical Amendments</inline>.—</heading><chapeau>Section 536 of the National Housing Act (12 U.S.C. 1735f-14) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subsection (c)(1)(B), by inserting after “<quotedText>lender</quotedText>” the following: “or such other person or entity”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>in subsection (d)(1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by inserting “<quotedText>or such other person or entity</quotedText>” after “lender”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking “<quotedText>part 25</quotedText>” and inserting “<quotedText>parts 24 and 25</quotedText>”; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>in subsection (e), by inserting “<quotedText>or such other person or entity</quotedText>” after “lender” each place that term appears.</content></paragraph> </subsection> </section> </part> <part> <num value="2">Part 2—</num><heading>FHA Multifamily Provisions</heading> <section> <num value="561">SEC. 561.</num> <heading>CIVIL MONEY PENALTIES AGAINST GENERAL PARTNERS, OFFICERS, DIRECTORS, AND CERTAIN MANAGING AGENTS OF MULTIFAMILY PROJECTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Civil Money Penalties Against Multifamily Mortgagors</inline>.—</heading><chapeau>Section 537 of the National Housing Act (12 U.S.C. 1735f-15) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subsection (b)(1), by striking “<quotedText>on that mortgagor</quotedText>” and inserting “<quotedText>on that mortgagor, on a general partner of a partnership mortgagor, or on any officer or director of a corporate mortgagor</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>in subsection (c)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking the subsection heading and inserting the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Other Violations</inline>.—</heading><content>”; and</content> </subsection> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>in paragraph (1)—<page identifier="/us/stat/111/1415">111 STAT. 1415</page></chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by striking “<quotedText>Violations.—The Secretary may</quotedText>” and all that follows through the colon and inserting the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Liable parties</inline>.—</heading><chapeau>The Secretary may also impose a civil money penalty under this section on—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>any mortgagor of a property that includes 5 or more living units and that has a mortgage insured, coinsured, or held pursuant to this Act;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>any general partner of a partnership mortgagor of such property;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>any officer or director of a corporate mortgagor;</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>any agent employed to manage the property that has an identity of interest with the mortgagor, with the general partner of a partnership mortgagor, or with any officer or director of a corporate mortgagor of such property; or</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>any member of a limited liability company that is the mortgagor of such property or is the general partner of a limited partnership mortgagor or is a partner of a general partnership mortgagor.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Violations</inline>.—</heading><content>A penalty may be imposed under this section upon any liable party under subparagraph (A) that knowingly and materially takes any of the following actions:”;</content></subparagraph> </quotedContent> </content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>in subparagraph (B), as designated by clause (i), by redesignating the subparagraph designations (A) through (L) as clauses (i) through (xii), respectively;</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>by adding after clause (xii), as redesignated by clause (ii), the following: <quotedContent> <clause class="indent3 fontsize10"><num value="xiii">“(xiii)</num> <content>Failure to maintain the premises, accommodations, any living unit in the project, and the grounds and equipment appurtenant thereto in good repair and condition in accordance with regulations and requirements of the Secretary, except that nothing in this clause shall have the effect of altering the provisions of an existing regulatory agreement or federally insured mortgage on the property.</content></clause> <clause class="indent3 fontsize10"><num value="xiv">“(xiv)</num> <content>Failure, by a mortgagor, a general partner of a partnership mortgagor, or an officer or director of a corporate mortgagor, to provide management for the project that is acceptable to the Secretary pursuant to regulations and requirements of the Secretary.</content></clause> <clause class="indent3 fontsize10"><num value="xv">“(xv)</num> <content>Failure to provide access to the books, records, and accounts related to the operations of the mortgaged property and of the project.”; and</content></clause> </quotedContent> </content></clause> <clause class="indent3 fontsize10"><num value="iv">(iv)</num> <content>in the last sentence, by deleting “of such agreement” and inserting “<quotedText>of this subsection</quotedText>”;</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <chapeau>in subsection (d)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in paragraph (1)(B), by inserting after “<quotedText>mortgagor</quotedText>” the following: “, general partner of a partnership mortgagor, officer or director of a corporate mortgagor, or identity of interest agent employed to manage the property”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Payment of penalty</inline>.—</heading><content>No payment of a civil money penalty levied under this section shall be payable out of project income.”;<page identifier="/us/stat/111/1416">111 STAT. 1416</page></content></paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>in subsection (e)(1), by deleting “a mortgagor” and inserting “<quotedText>an entity or person</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>in subsection (f), by inserting after “<quotedText>mortgagor</quotedText>” each place such term appears the following: “, general partner of a partnership mortgagor, officer or director of a corporate mortgagor, or identity of interest agent employed to manage the property”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>by striking the heading of subsection (f) and inserting the following: “Civil Money Penalties Against Multifamily Mortgagors, General Partners of Partnership Mortgagors, Officers and Directors of Corporate Mortgagors, and Certain Managing Agents”; and</content></paragraph> <subparagraph class="indent2 fontsize10"><num value="7">(7)</num> <content>by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="k">“(k)</num> <heading><inline class="smallCaps">Identity of Interest Managing Agent</inline>.—</heading><chapeau>In this section, the terms ‘agent employed to manage the property that has an identity of interest’ and ‘identity of interest agent’ mean an entity—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>that has management responsibility for a project;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>in which the ownership entity, including its general partner or partners (if applicable) and its officers or directors (if applicable), has an ownership interest; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>over which the ownership entity exerts effective control.”.</content></paragraph> </subsection> </quotedContent> </content></subparagraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p><p class="indent0 fontsize10"><ref href="/us/usc/t12/s1735f–15">12 USC 1735f–15 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Implementation</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Public comment</inline>.—</heading><content>The Secretary shall implement the amendments made by this section by regulation issued after notice and opportunity for public comment. The notice shall seek comments primarily as to the definitions of the terms “ownership interest in” and “effective control”, as those terms are used in the definition of the terms “agent employed to manage the property that has an identity of interest” and “identity of interest agent”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Publication.</p></sidenote> <heading><inline class="smallCaps">Timing</inline>.—</heading><content>A proposed rule implementing the amendments made by this section shall be published not later than 1 year after the date of enactment of this Act.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1735f–15">12 USC 1735f–15 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Applicability of Amendments</inline>.—</heading><chapeau>The amendments made by subsection (a) shall apply only with respect to—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>violations that occur on or after the effective date of the final regulations implementing the amendments made by this section; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in the case of a continuing violation (as determined by the Secretary of Housing and Urban Development), any portion of a violation that occurs on or after that date.</content></paragraph> </subsection> </section> <section> <num value="562">SEC. 562.</num> <heading>CIVIL MONEY PENALTIES FOR NONCOMPLIANCE WITH SECTION 8 HAP CONTRACTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Basic Authority</inline>.—</heading><chapeau>Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by designating the second section designated as section 27 (as added by section 903(b) of Public Law 104–193 (110 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437z">42 USC 1437z</ref>.</p></sidenote>Stat. 2348)) as section 28; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following: <quotedContent> <section> <num value="29">“SEC. 29.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437z–1">42 USC 1437z–1</ref>.</p></sidenote> <heading>CIVIL MONEY PENALTIES AGAINST SECTION 8 OWNERS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Effect on other remedies</inline>.—</heading><content>The penalties set forth in this section shall be in addition to any other available civil remedy or any available criminal penalty, and may be <page identifier="/us/stat/111/1417">111 STAT. 1417</page>imposed regardless of whether the Secretary imposes other administrative sanctions.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Failure of secretary</inline>.—</heading><content>The Secretary may not impose penalties under this section for a violation, if a material cause of the violation is the failure of the Secretary, an agent of the Secretary, or a public housing agency to comply with an existing agreement.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Violations of Housing Assistance Payment Contracts for Which Penalty May Be Imposed</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Liable parties</inline>.—</heading><chapeau>The Secretary may impose a civil money penalty under this section on—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>any owner of a property receiving project-based assistance under section 8;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>any general partner of a partnership owner of that property; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>any agent employed to manage the property that has an identity of interest with the owner or the general partner of a partnership owner of the property.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Violations</inline>.—</heading><chapeau>A penalty may be imposed under this section for a knowing and material breach of a housing assistance payments contract, including the following—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>failure to provide decent, safe, and sanitary housing pursuant to section 8; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>knowing or willful submission of false, fictitious, or fraudulent statements or requests for housing assistance payments to the Secretary or to any department or agency of the United States.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Amount of penalty</inline>.—</heading><content>The amount of a penalty imposed for a violation under this subsection, as determined by the Secretary, may not exceed $25,000 per violation.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Agency Procedures</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Establishment</inline>.—</heading><chapeau>The Secretary shall issue regulations establishing standards and procedures governing the imposition of civil money penalties under subsection (b). These standards and procedures—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>shall provide for the Secretary or other department official to make the determination to impose the penalty;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>shall provide for the imposition of a penalty only after the liable party has received notice and the opportunity for a hearing on the record; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>may provide for review by the Secretary of any determination or order, or interlocutory ruling, arising from a hearing and judicial review, as provided under subsection (d).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Final orders</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If a hearing is not requested before the expiration of the 15-day period beginning on the date on which the notice of opportunity for hearing is received, the imposition of a penalty under subsection (b) shall constitute a final and unappealable determination.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Effect of review</inline>.—</heading><content>If the Secretary reviews the determination or order, the Secretary may affirm, modify, or reverse that determination or order.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Failure to review</inline>.—</heading><content>If the Secretary does not review that determination or order before the expiration of the 90-day period beginning on the date on which the <page identifier="/us/stat/111/1418">111 STAT. 1418</page>determination or order is issued, the determination or order shall be final.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Factors in determining amount of penalty</inline>.—</heading><chapeau>In determining the amount of a penalty under subsection (b), the Secretary shall take into consideration—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the gravity of the offense;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>any history of prior offenses by the violator (including offenses occurring before the enactment of this section);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>the ability of the violator to pay the penalty;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>any injury to tenants;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>any injury to the public;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>any benefits received by the violator as a result of the violation;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <content>deterrence of future violations; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">“(H)</num> <content>such other factors as the Secretary may establish by regulation.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Payment of penalty</inline>.—</heading><content>No payment of a civil money penalty levied under this section shall be payable out of project income.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Judicial Review of Agency Determination</inline>.—</heading><content>Judicial review of determinations made under this section shall be carried out in accordance with section 537(e) of the National Housing Act.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Remedies for Noncompliance</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Judicial intervention</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If a person or entity fails to comply with the determination or order of the Secretary imposing a civil money penalty under subsection (b), after the determination or order is no longer subject to review as provided by subsections (c) and (d), the Secretary may request the Attorney General of the United States to bring an action in an appropriate United States district court to obtain a monetary judgment against that person or entity and such other relief as may be available.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Fees and expenses</inline>.—</heading><content>Any monetary judgment awarded in an action brought under this paragraph may, in the discretion of the court, include the attorney’s fees and other expenses incurred by the United States in connection with the action.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Nonreviewability of determination or order</inline>.—</heading><content>In an action under this subsection, the validity and appropriateness of the determination or order of the Secretary imposing the penalty shall not be subject to review.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Settlement by Secretary</inline>.—</heading><content>The Secretary may compromise, modify, or remit any civil money penalty which may be, or has been, imposed under this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Deposit of Penalties</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Notwithstanding any other provision of law, if the mortgage covering the property receiving assistance under section 8 is insured or was formerly insured by the Secretary, the Secretary shall apply all civil money penalties collected under this section to the appropriate insurance fund or funds established under this Act, as determined by the Secretary.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Exception</inline>.—</heading><content>Notwithstanding any other provision of law, if the mortgage covering the property receiving assistance under section 8 is neither insured nor formerly insured by <page identifier="/us/stat/111/1419">111 STAT. 1419</page>the Secretary, the Secretary shall make all civil money penalties collected under this section available for use by the appropriate office within the Department for administrative costs related to enforcement of the requirements of the various programs administered by the Secretary.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>In this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <chapeau>the term ‘agent employed to manage the property that has an identity of interest’ means an entity—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>that has management responsibility for a project;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>in which the ownership entity, including its general partner or partners (if applicable), has an ownership interest; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>over which such ownership entity exerts effective control; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the term ‘knowing’ means having actual knowledge of or acting with deliberate ignorance of or reckless disregard for the prohibitions under this section.”.</content></paragraph> </subsection> </section> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Applicability</inline>.—</heading><chapeau>The amendments made by subsection (a)<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437z–1">42 USC 1437z–1 note</ref>.</p></sidenote> shall apply only with respect to—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>violations that occur on or after the effective date of final regulations implementing the amendments made by this section; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in the case of a continuing violation (as determined by the Secretary of Housing and Urban Development), any portion of a violation that occurs on or after such date.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Implementation</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Regulations</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437z–1">42 USC 1437z–1 note</ref>.</p></sidenote> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall implement the amendments made by this section by regulation issued after notice and opportunity for public comment.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Comments sought</inline>.—</heading><content>The notice under subparagraph (A) shall seek comments as to the definitions of the terms “ownership interest in” and “effective control”, as such terms are used in the definition of the term “agent employed to manage such property that has an identity of interest”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Timing</inline>.—</heading><content>A proposed rule implementing the amendments<sidenote><p class="indent0 firstIndent0 fontsize8">Publication.</p></sidenote> made by this section shall be published not later than 1 year after the date of enactment of this Act.</content></paragraph> </subsection> </section> <section> <num value="563">SEC. 563.</num> <heading>EXTENSION OF DOUBLE DAMAGES REMEDY.</heading> <chapeau>Section 421 of the Housing and Community Development Act of 1987 (12 U.S.C. 1715z–4a) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in subsection (a)(1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in the first sentence, by striking “<quotedText>Act; or (B)</quotedText>” and inserting the following: “Act; (B) a regulatory agreement that applies to a multifamily project whose mortgage is insured or held by the Secretary under section 202 of the Housing Act of 1959 (including property subject to section 202 of such Act as it existed before enactment of the Cranston-Gonzalez National Affordable Housing Act of 1990); (C) a regulatory agreement or such other form of regulatory control as may be imposed by the Secretary that applies to mortgages insured or held by the Secretary under section 542 of the Housing and Community Development Act of 1992, but not reinsured under section 542 <page identifier="/us/stat/111/1420">111 STAT. 1420</page>of the Housing and Community Development Act of 1992; or (D)”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in the second sentence, by inserting after “<quotedText>agreement</quotedText>” the following: “, or such other form of regulatory control as may be imposed by the Secretary,”;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in subsection (a)(2), by inserting after “<quotedText>Act,</quotedText>” the following: “under section 202 of the Housing Act of 1959 (including section 202 of such Act as it existed before enactment of the Cranston-Gonzalez National Affordable Housing Act of 1990) and under section 542 of the Housing and Community Development Act of 1992,”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>in subsection (b), by inserting after “<quotedText>agreement</quotedText>” the following: “, or such other form of regulatory control as may be imposed by the Secretary,”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <chapeau>in subsection (c)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in the first sentence, by inserting after “<quotedText>agreement</quotedText>” the following: “, or such other form of regulatory control as may be imposed by the Secretary,”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in the second sentence, by inserting before the period the following: “or, in the case of any project for which the mortgage is held by the Secretary under section 202 of the Housing Act of 1959 (including property subject to section 202 of such Act as it existed before enactment of the Cranston-Gonzalez National Affordable Housing Act of 1990), to the project or to the Department for use by the appropriate office within the Department for administrative costs related to enforcement of the requirements of the various programs administered by the Secretary, as appropriate”; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>in subsection (d), by inserting after “<quotedText>agreement</quotedText>” the following: “, or such other form of regulatory control as may be imposed by the Secretary,”.</content></paragraph> </section> <section> <num value="564">SEC. 564.</num> <heading>OBSTRUCTION OF FEDERAL AUDITS.</heading> <content>Section 1516(a) of title 18, United States Code, is amended by inserting after “<quotedText>under a contract or subcontract,</quotedText>” the following: “or relating to any property that is security for a mortgage note that is insured, guaranteed, acquired, or held by the Secretary of Housing and Urban Development pursuant to any Act administered by the Secretary,”.</content> </section> </part> </subtitle> <subtitle> <num value="D">Subtitle D—</num><heading>Office of Multifamily Housing Assistance Restructuring</heading> <section> <num value="571">SEC. 571.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f note</ref>.</p></sidenote> <heading>ESTABLISHMENT OF OFFICE OF MULTIFAMILY HOUSING ASSISTANCE RESTRUCTURING.</heading> <content>There is hereby established an office within the Department of Housing and Urban Development, which shall be known as the Office of Multifamily Housing Assistance Restructuring.</content> </section> <section> <num value="572">SEC. 572.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f note</ref>.</p><p class="indent0 firstIndent0 fontsize8">President.</p></sidenote> <heading>DIRECTOR.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Appointment</inline>.—</heading><content>The Office shall be under the management of a Director, who shall be appointed by the President by and with the advice and consent of the Senate, from among individuals who are citizens of the United States and have a demonstrated understanding of financing and mortgage restructuring for affordable multifamily housing. Not later than 60 days after the date <page identifier="/us/stat/111/1421">111 STAT. 1421</page>of the enactment of this Act, the President shall submit to the Senate a nomination for initial appointment to the position of Director.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Vacancy</inline>.—</heading><content>A vacancy in the position of Director shall be filled in the manner in which the original appointment was made under subsection (a).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Deputy Director</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Office shall have a Deputy Director who shall be appointed by the Director from among individuals who are citizens of the United States and have a demonstrated understanding of financing and mortgage restructuring for affordable multifamily housing.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Functions</inline>.—</heading><content>The Deputy Director shall have such functions, powers, and duties as the Director shall prescribe. In the event of the death, resignation, sickness, or absence of the Director, the Deputy Director shall serve as acting Director until the return of the Director or the appointment of a successor pursuant to subsection (b).</content></paragraph> </subsection> </section> <section> <num value="573">SEC. 573.</num> <heading>DUTY AND AUTHORITY OF DIRECTOR.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Duty</inline>.—</heading><content>The Secretary shall, acting through the Director, administer the program of mortgage and rental assistance restructuring for eligible multifamily housing projects under subtitle A. During the period before the Director is appointed, the Secretary may carry out such program.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Authority</inline>.—</heading><content>The Director is authorized to make such determinations, take such actions, issue such regulations, and perform such functions assigned to the Director under law as the Director determines necessary to carry out such functions, subject to the review and approval of the Secretary. The Director shall semiannually<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> submit a report to the Secretary regarding the activities, determinations, and actions of the Director.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Delegation of Authority</inline>.—</heading><content>The Director may delegate to officers and employees of the Office (but not to contractors, subcontractors, or consultants) any of the functions, powers, and duties of the Director, as the Director considers appropriate.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Independence in Providing Information to Congress</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Notwithstanding subsection (a) or (b), the Director shall not be required to obtain the prior approval, comment, or review of any officer or agency of the United States before submitting to the Congress, or any committee or subcommittee thereof, any reports, recommendations, testimony, or comments if such submissions include a statement indicating that the views expressed therein are those of the Director and do not necessarily represent the views of the Secretary or the President.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Requirement</inline>.—</heading><content>If the Director determines at any time<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> that the Secretary is taking or has taken any action that interferes with the ability of the Director to carry out the duties of the Director under this Act or that affects the administration of the program under subtitle A of this Act in a manner that is inconsistent with the purposes of this Act, including any proposed action by the Director, in the discretion of the Director, that is overruled by the Secretary, the Director shall immediately report directly to the Committee on Banking and Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the <page identifier="/us/stat/111/1422">111 STAT. 1422</page>Senate regarding such action. Notwithstanding subsection (a) or (b), any determination or report under this paragraph by the Director shall not be subject to prior review or approval of the Secretary.</content></paragraph> </subsection> </section> <section> <num value="574">SEC. 574.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f note</ref>.</p></sidenote> <heading>PERSONNEL.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Office Personnel</inline>.—</heading><content>The Director may appoint and fix the compensation of such officers and employees of the Office as the Director considers necessary to carry out the functions of the Director and the Office. Officers and employees may be paid without regard to the provisions of chapter 51 and subchapter III of chapter 53 of title 5, United States Code, relating to classification and General Schedule pay rates.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Comparability of Compensation With Federal Banking Agencies</inline>.—</heading><content>In fixing and directing compensation under subsection (a), the Director shall consult with, and maintain comparability with compensation of officers and employees of the Federal Deposit Insurance Corporation.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Personnel of Other Federal Agencies</inline>.—</heading><content>In carrying out the duties of the Office, the Director may use information, services, staff, and facilities of any executive agency, independent agency, or department on a reimbursable basis, with the consent of such agency or department.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Outside Experts and Consultants</inline>.—</heading><content>The Director may procure temporary and intermittent services under section 3109(b) of title 5, United States Code.</content> </subsection> </section> <section> <num value="575">SEC. 575.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f note</ref>.</p></sidenote> <heading>BUDGET AND FINANCIAL REPORTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Financial Operating Plans and Forecasts</inline>.—</heading><content>Before the beginning of each fiscal year, the Secretary shall submit a copy of the financial operating plans and forecasts for the Office to the Director of the Office of Management and Budget.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Reports of Operations</inline>.—</heading><content>As soon as practicable after the end of each fiscal year and each quarter thereof, the Secretary shall submit a copy of the report of the results of the operations of the Office during such period to the Director of the Office of Management and Budget.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Inclusion in President’s Budget</inline>.—</heading><content>The annual plans, forecasts, and reports required under this section shall be included: (1) in the Budget of the United States in the appropriate form; and (2) in the congressional justifications of the Department of Housing and Urban Development for each fiscal year in a form determined by the Secretary.</content> </subsection> </section> <section> <num value="576">SEC. 576.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f note</ref>.</p></sidenote> <heading>LIMITATION ON SUBSEQUENT EMPLOYMENT.</heading> <content>Neither the Director nor any former officer or employee of the Office who, while employed by the Office, was compensated at a rate in excess of the lowest rate for a position classified higher than GS-15 of the General Schedule under section 5107 of title 5, United States Code, may, during the 2-year period beginning on the date of separation from employment by the Office, accept compensation from any party (other than a Federal agency) having any financial interest in any mortgage restructuring and rental assistance sufficiency plan under subtitle A or comparable matter in which the Director or such officer or employee had direct participation or supervision.<page identifier="/us/stat/111/1423">111 STAT. 1423</page></content> </section> <section> <num value="577">SEC. 577.</num> <heading>AUDITS BY GAO.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f note</ref>.</p></sidenote> <content>The Comptroller General shall audit the operations of the Office in accordance with generally accepted Government auditing standards. All books, records, accounts, reports, files, and property belonging to, or used by, the Office shall be made available to the Comptroller General. Audits under this section shall be conducted annually for the first 2 fiscal years following the date of the enactment of this Act and as appropriate thereafter.</content> </section> <section> <num value="578">SEC. 578.</num> <heading>SUSPENSION OF PROGRAM BECAUSE OF FAILURE TO APPOINT DIRECTOR.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>If, upon the expiration of the 12-month period beginning on the date of the enactment of this Act, the initial appointment to the office of Director has not been made, the operation of the program under subtitle A shall immediately be suspended and such provisions shall not have any force or effect during the period that ends upon the making of such appointment.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Interim applicability of demonstration program</inline>.—</heading><content>Notwithstanding any other provision of law, during the period referred to in subsection (a), the Secretary shall carry out sections 211 and 212 of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997. For purposes of applying such sections pursuant to the authority under this section, the term “expiring contract” shall have the meaning given in such sections, except that such term shall also include any contract for project-based assistance under section 8 of the United States Housing Act of 1937 that expires during the period that the program is suspended under subsection (a).</content> </subsection> </section> <section> <num value="579">SEC. 579.</num> <heading>TERMINATION.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f note</ref>.</p><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Repeal</inline>.—</heading><content>Subtitle A (except for section 524) and subtitle D (except for this section) are repealed effective October 1, 2001.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Exception</inline>.—</heading><content>Notwithstanding the repeal under subsection (a), the provisions of subtitle A (as in effect immediately before such repeal) shall apply with respect to projects and programs for which binding commitments have been entered into under this Act before October 1, 2001.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Termination of Director and Office</inline>.—</heading><content>The Office of Multifamily Housing Assistance Restructuring and the position of Director of such Office shall terminate upon September 30, 2001.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Transfer of Authority</inline>.—</heading><content><p class="indent0 fontsize10">Effective upon the termination under subsection (c), any authority and responsibilities assigned to the Director that remain applicable after such date pursuant to subsection (b) are transferred to the Secretary.<page identifier="/us/stat/111/1424">111 STAT. 1424</page></p> <p class="indent0 fontsize10">This Act may be cited as the “<shortTitle role="act">Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998</shortTitle>”.</p> </content></subsection> </section> </subtitle> Approved October 27, 1997.
LEGISLATIVE HISTORY—H.R. 2158 (S. 1034): HOUSE REPORTS: Nos. 105–175 (Comm. on Appropriations) and 105–297 (Comm. of Conference). SENATE REPORTS: No. 105–53 accompanying S. 1034 (Comm. on Appropriations). CONGRESSIONAL RECORD, Vol. 143 (1997):

July 15, 16, considered and passed House.

July 22, considered and passed Senate, amended.

Oct. 8, House agreed to conference report.

Oct. 9, Senate agreed to conference report.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):

Oct. 27, Presidential statement.

Nov. 1, President’s special message on line item veto.

 FEDERAL REGISTER, Vol. 62 (1997):

Nov. 4, Cancellation of items pursuant to the Line Item Veto Act.

 Public Law 105–66: Making appropriations for the Department of Transportation and related agencies for the fiscal year ending September 30, 1998, and for other purposes. Public Law66 Public Law 105–66 111 Stat. 1425 1997-10-27 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1425

*Note: This law contains items that were cancelled by the President pursuant to the Line Item Veto Act. For more information, see the Federal Register entry under “LEGISLATIVE HISTORY” at the end of this law.

 Public Law105–66 105th Congress
An Act Making appropriations for the Department of Transportation and related agencies for the fiscal year ending September 30, 1998, and for other purposes.

Oct. 27, 1997

[H.R. 2169]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Department of Transportation and Related Agencies Appropriations Act, 1998.
That the following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the Department of Transportation and related agencies for the fiscal year ending September 30, 1998, and for other purposes, namely:
<num value="I">TITLE I</num> <heading>DEPARTMENT OF TRANSPORTATION</heading> <subheading>OFFICE OF THE SECRETARY</subheading> <appropriations level="intermediate"> <heading>Salaries and Expenses</heading> <content>For necessary expenses of the Office of the Secretary, $61,000,000, of which not to exceed $40,000 shall be available as the Secretary may determine for allocation within the Department for official reception and representation expenses: <proviso><i>Provided,</i> That notwithstanding any other provision of law, there may be credited to this appropriation up to $1,000,000 in funds received in user fees:</proviso> <proviso><i>Provided further,</i> That none of the funds appropriated in this Act or otherwise made available may be used to maintain custody of airline tariffs that are already available for public and departmental access at no cost; to secure them against detection, alteration, or tampering; and open to inspection by the Department.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Office of Civil Rights</heading> <content>For necessary expenses of the Office of Civil Rights, $5,574,000.</content> </appropriations> <appropriations level="intermediate"> <heading>Transportation Planning, Research, and Development</heading> <content>For necessary expenses for conducting transportation planning, research, systems development, and development activities, to remain available until expended, $4,400,000.</content> </appropriations> <appropriations level="intermediate"> <heading>Transportation Administrative Service Center</heading> <content>Necessary expenses for operating costs and capital outlays of the Transportation Administrative Service Center, not to exceed $121,800,000, shall be paid from appropriations made available to the Department of Transportation: <proviso><i>Provided,</i> That such services <page identifier="/us/stat/111/1426">111 STAT. 1426</page>shall be provided on a competitive basis to entities within the Department of Transportation:</proviso> <proviso><i>Provided further,</i> That the above limitation on operating expenses shall not apply to non-DOT entities:</proviso> <proviso><i>Provided further,</i> That no funds appropriated in this Act to an agency of the Department shall be transferred to the Transportation Administrative Service Center without the approval of the agency modal administrator:</proviso> <proviso><i>Provided further,</i> That no assessments may be levied against any program, budget activity, subactivity or project funded by this Act unless notice of such assessments and the basis therefor are presented to the House and Senate Committees on Appropriations and are approved by such Committees.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Payments to Air Carriers</heading> <appropriations level="small"> <heading>(rescission of contract authorization)</heading> <subheading>(airport and airway trust fund)</subheading> <content>Of the budgetary resources provided for “Small Community Air Service” by Public Law 101–508, for fiscal year 1998, $38,600,000 are rescinded.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Minority Business Resource Center Program</heading> <content>For the cost of direct loans, $1,500,000, as authorized by 49 U.S.C. 332: <proviso><i>Provided,</i> That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974:</proviso> <proviso><i>Provided further,</i> That these funds are available to subsidize gross obligations for the principal amount of direct loans not to exceed $15,000,000. In addition, for administrative expenses to carry out the direct loan program, $400,000.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Minority Business Outreach</heading> <content>For necessary expenses of Minority Business Resource Center outreach activities, $2,900,000, of which $2,635,000 shall remain available until September 30, 1999: <proviso><i>Provided,</i> That notwithstanding 49 U.S.C. 332, these funds may be used for business opportunities related to any mode of transportation.</proviso></content> </appropriations> <appropriations level="major"> <heading>COAST GUARD</heading> <appropriations level="intermediate"> <heading>Operating Expenses</heading> <subheading>(including transfer of funds)</subheading> <content>For necessary expenses for the operation and maintenance of the Coast Guard, not otherwise provided for; purchase of not to exceed five passenger motor vehicles for replacement only; payments pursuant to section 156 of Public Law 97–377, as amended (42 U.S.C. 402 note), and section 229(b) of the Social Security Act (42 U.S.C. 429(b)); and recreation and welfare; $2,715,400,000, of which $300,000,000 shall be available for defense-related activities and $25,000,000 shall be derived from the Oil Spill Liability Trust <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t14/s92">14 USC 92 note</ref>.</p></sidenote>Fund: <proviso><i>Provided,</i> That the number of aircraft on hand at any one time shall not exceed 212, exclusive of aircraft and parts stored to meet future attrition:</proviso> <proviso><i>Provided further,</i> That none of the funds <page identifier="/us/stat/111/1427">111 STAT. 1427</page>appropriated in this or any other Act shall be available for pay or administrative expenses in connection with shipping commissioners in the United States:</proviso> <proviso><i>Provided further,</i> That none of the funds provided in this Act shall be available for expenses incurred for yacht documentation under 46 U.S.C. 12109, except to the extent fees are collected from yacht owners and credited to this appropriation:</proviso> <proviso><i>Provided further,</i> That the Commandant shall reduce both military and civilian employment levels for the purpose of complying with Executive Order No. 12839:</proviso> <proviso><i>Provided further,</i> That<sidenote><p class="indent0 firstIndent0 fontsize8">Certification.</p></sidenote> $34,300,000 of the funds provided under this heading for increased drug interdiction activities are not available for obligation until the Director, Office of National Drug Control Policy: (1) reviews the specific activities and associated costs and benefits proposed by the Coast Guard; (2) compares those activities to other drug interdiction efforts Government-wide; and (3) certifies, in writing, to the House and Senate Committees on Appropriations that such expenditures represent the best investment relative to other options:</proviso> <proviso><i>Provided further,</i> That should the Director, Office of National Drug Control Policy decline to make such certification, after notification in writing to the House and Senate Committees on Appropriations, the Director may transfer, at his discretion, up to $34,300,000 of funds provided herein for Coast Guard drug interdiction activities to any other entity of the Federal Government for drug interdiction activities:</proviso> <proviso><i>Provided further,</i> That up to $615,000 in user fees collected pursuant to section 1111 of Public Law 104–324 shall be credited to this appropriation as offsetting collections in fiscal year 1998.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Acquisition, Construction, and Improvements</heading> <content>For necessary expenses of acquisition, construction, renovation, and improvement of aids to navigation, shore facilities, vessels, and aircraft, including equipment related thereto, $397,850,000, of which $20,000,000 shall be derived from the Oil Spill Liability Trust Fund; of which $212,100,000 shall be available to acquire, repair, renovate or improve vessels, small boats and related equipment, to remain available until September 30, 2002; $25,800,000 shall be available to acquire new aircraft and increase aviation capability, to remain available until September 30, 2000; $44,650,000 shall be available for other equipment, to remain available until September 30, 2000; $68,300,000 shall be available for shore facilities and aids to navigation facilities, to remain available until September 30, 2000; and $47,000,000 shall be available for personnel compensation and benefits and related costs, to remain available until September 30, 1999: <proviso><i>Provided,</i> That funds received from the sale of HU–25 aircraft shall be credited to this appropriation for the purpose of acquiring new aircraft and increasing aviation capacity:</proviso> <proviso><i>Provided further,</i> That the Commandant may dispose of surplus real property by sale or lease and the proceeds shall be credited to this appropriation, of which not more than $9,000,000 shall be credited as offsetting collections to this account, to be available for the purposes of this account:</proviso> <proviso><i>Provided further,</i> That the amount herein appropriated from the General Fund shall be reduced by such amount:</proviso> <proviso><i>Provided further,</i> That any proceeds from the sale or lease of Coast Guard surplus real property in excess of $9,000,000 shall be retained and remain available until expended, but shall not be available for obligation until October <page identifier="/us/stat/111/1428">111 STAT. 1428</page>1, 1998:</proviso> <proviso><i>Provided further,</i> That the Secretary, acting through the Commandant, may enter into a long-term Use Agreement with the City of Unalaska for dedicated pier space on the municipal dock necessary to support Coast Guard enforcement vessels when such vessels call on the Port of Dutch Harbor, Alaska.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Environmental Compliance and Restoration</heading> <content>For necessary expenses to carry out the Coast Guard’s environmental compliance and restoration functions under chapter 19 of title 14, United States Code, $21,000,000, to remain available until expended.</content> </appropriations> <appropriations level="intermediate"> <heading>Alteration of Bridges</heading> <content>For necessary expenses for alteration or removal of obstructive bridges, $17,000,000, to remain available until expended.</content> </appropriations> <appropriations level="intermediate"> <heading>Retired Pay</heading> <content>For retired pay, including the payment of obligations therefor otherwise chargeable to lapsed appropriations for this purpose, and payments under the Retired Serviceman’s Family Protection and Survivor Benefits Plans, and for payments for medical care of retired personnel and their dependents under the Dependents Medical Care Act (10 U.S.C. ch. 55); $653,196,000.</content> </appropriations> <appropriations level="intermediate"> <heading>Reserve Training</heading> <subheading>(including transfer of funds)</subheading> <content>For all necessary expenses of the Coast Guard Reserve, as authorized by law; maintenance and operation of facilities; and supplies, equipment, and services; $67,000,000: <proviso><i>Provided,</i> That no more than $20,000,000 of funds made available under this heading may be transferred to Coast Guard “Operating expenses” or otherwise made available to reimburse the Coast Guard for financial support of the Coast Guard Reserve.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Research, Development, Test, and Evaluation</heading> <content>For necessary expenses, not otherwise provided for, for applied scientific research, development, test, and evaluation; maintenance, rehabilitation, lease and operation of facilities and equipment, as authorized by law, $19,000,000, to remain available until expended, of which $3,500,000 shall be derived from the Oil Spill Liability Trust Fund: <proviso><i>Provided,</i> That there may be credited to this appropriation funds received from State and local governments, other public authorities, private sources, and foreign countries, for expenses incurred for research, development, testing, and evaluation.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Boat Safety</heading> <subheading>(aquatic resources trust fund)</subheading> <content>For payment of necessary expenses incurred for recreational boating safety assistance under Public Law 92–75, as amended, $35,000,000, to be derived from the Boat Safety Account and to remain available until expended.<page identifier="/us/stat/111/1429">111 STAT. 1429</page></content> </appropriations> </appropriations> <appropriations level="major"> <heading>FEDERAL AVIATION ADMINISTRATION</heading> <appropriations level="intermediate"> <heading>Operations</heading> <content>For necessary expenses of the Federal Aviation Administration, not otherwise provided for, including operations and research activities related to commercial space transportation, administrative expenses for research and development, establishment of air navigation facilities and the operation (including leasing) and maintenance of aircraft, and carrying out the provisions of subchapter I of chapter 471 of title 49, United States Code, or other provisions of law authorizing the obligation of funds for similar programs of airport and airway development or improvement, lease or purchase of passenger motor vehicles for replacement only, in addition to amounts made available by Public Law 104–264, $5,301,934,000, of which $1,901,628,000 shall be derived from the Airport and Airway Trust Fund: <proviso><i>Provided,</i> That none of the funds in this Act shall be available for the Federal Aviation Administration to plan, finalize, or implement any regulation that would promulgate new aviation user fees not specifically authorized by law after the date of enactment of this Act:</proviso> <proviso><i>Provided further,</i> That there may be credited to this appropriation funds received from States, counties, municipalities, foreign authorities, other public authorities, and private sources, for expenses incurred in the provision of agency services, including receipts for the maintenance and operation of air navigation facilities, and for issuance, renewal or modification of certificates, including airman, aircraft, and repair station certificates, or for tests related thereto, or for processing major repair or alteration forms:</proviso> <proviso><i>Provided further,</i> That funds may be used to enter into a grant agreement with a nonprofit standard-setting organization to assist in the development of aviation safety standards:</proviso> <proviso><i>Provided further,</i> That none of the funds in this Act shall be available for new applicants for the second career training program:</proviso> <proviso><i>Provided further,</i> That none of the funds in this Act shall be available for paying premium pay under 5 U.S.C. 5546(a) to any Federal Aviation Administration employee unless such employee actually performed work during the time corresponding to such premium pay:</proviso> <proviso><i>Provided further,</i> That none of the funds in this Act may be obligated or expended to operate a manned auxiliary flight service station in the contiguous United States:</proviso> <proviso><i>Provided further,</i> That none of the funds derived from the Airport and Airway Trust Fund may be used to support the operations and activities of the Associate Administrator for Commercial Space Transportation:</proviso> <proviso><i>Provided further,</i> That up to $5,000 of funds appropriated under this heading may be used for activities under the Aircraft Purchase Loan Guarantee Program.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Facilities and Equipment</heading> <subheading>(airport and airway trust fund)</subheading> <content>For necessary expenses, not otherwise provided for, for acquisition, establishment, and improvement by contract or purchase, and hire of air navigation and experimental facilities and equipment as authorized under part A of subtitle VII of title 49, United States Code, including initial acquisition of necessary sites by lease or grant; engineering and service testing, including construction of test facilities and acquisition of necessary sites by lease or grant; <page identifier="/us/stat/111/1430">111 STAT. 1430</page>and construction and furnishing of quarters and related accommodations for officers and employees of the Federal Aviation Administration stationed at remote localities where such accommodations are not available; and the purchase, lease, or transfer of aircraft from funds available under this head; to be derived from the Airport and Airway Trust Fund, $1,875,477,000, of which $1,656,367,000 shall remain available until September 30, 2000, and of which $219,110,000 shall remain available until September 30, 1998: <proviso><i>Provided,</i> That there may be credited to this appropriation funds received from States, counties, municipalities, other public authorities, and private sources, for expenses incurred in the establishment and modernization of air navigation facilities.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Research, Engineering, and Development</heading> <subheading>(airport and airway trust fund)</subheading> <content>For necessary expenses, not otherwise provided for, for research, engineering, and development, as authorized under part A of subtitle VII of title 49, United States Code, including construction of experimental facilities and acquisition of necessary sites by lease or grant, $199,183,000, to be derived from the Airport and Airway Trust Fund and to remain available until September 30, 2000: <proviso><i>Provided,</i> That there may be credited to this appropriation funds received from States, counties, municipalities, other public authorities, and private sources, for expenses incurred for research, engineering, and development:</proviso> <proviso><i>Provided further,</i> That none of the funds in this Act may be obligated or expended for the “Flight 2000” Program.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Grants-in-Aid for Airports</heading> <appropriations level="small"> <heading>(liquidation of contract authorization)</heading> <subheading>(airport and airway trust fund)</subheading> <content>For liquidation of obligations incurred for grants-in-aid for airport planning and development, and for noise compatibility planning and programs as authorized under subchapter I of chapter 471 and subchapter I of chapter 475 of title 49, United States Code, and under other law authorizing such obligations, $1,600,000,000, to be derived from the Airport and Airway Trust Fund and to remain available until expended: <proviso><i>Provided,</i> That none of the funds in this Act shall be available for the planning or execution of programs the obligations for which are in excess of $1,700,000,000 in fiscal year 1998 for grants-in-aid for airport planning and development, and noise compatibility planning and programs, notwithstanding section 47117(h) of title 49, United States Code:</proviso> <proviso><i>Provided further,</i> That discretionary funds available for noise planning and mitigation shall not exceed $200,000,000 and discretionary funds available for the military airport program shall not exceed $26,000,000.</proviso><page identifier="/us/stat/111/1431">111 STAT. 1431</page></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Grants-in-Aid For Airports</heading> <appropriations level="small"> <heading>(airport and airway trust fund)</heading> <subheading>(rescission of contract authorization)</subheading> <content>Of the unobligated balances authorized under 49 U.S.C. 48103 as amended, $412,000,000 are rescinded.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Aviation Insurance Revolving Fund</heading> <content>The Secretary of Transportation is hereby authorized to make such expenditures and investments, within the limits of funds available pursuant to 49 U.S.C. 44307, and in accordance with section 104 of the Government Corporation Control Act, as amended (31 U.S.C. 9104), as may be necessary in carrying out the program for aviation insurance activities under chapter 443 of title 49, United States Code.</content> </appropriations> <appropriations level="intermediate"> <heading>Aircraft Purchase Loan Guarantee Program</heading> <content>Except as specifically provided elsewhere in this Act, none<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s40113">49 USC 40113 note</ref>.</p></sidenote> of the funds in this Act shall be available for activities under this heading during fiscal year 1998.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>FEDERAL HIGHWAY ADMINISTRATION</heading> <appropriations level="intermediate"> <heading>Limitation on General Operating Expenses</heading> <content>Necessary expenses for administration, operation, including motor carrier safety program operations, and research of the Federal Highway Administration not to exceed $552,266,000 shall be paid in accordance with law from appropriations made available by this Act to the Federal Highway Administration together with advances and reimbursements received by the Federal Highway Administration: <proviso><i>Provided,</i> That $241,708,000 of the amount provided herein shall remain available until September 30, 2000.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Appalachian Development Highway System</heading> <content>For carrying out the provisions of section 1069(y) of Public Law 102–240, relating to construction of, and improvements to, corridors of the Appalachian Development Highway System, $300,000,000 to remain available until expended: <proviso><i>Provided,</i> That none of the funds provided under this heading shall be available for engineering, design, right-of-way acquisition, or major construction of the Appalachian Development Highway System between 1–81 in Virginia and the community of Wardensville, West Virginia.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Federal-Aid Highways</heading> <appropriations level="small"> <heading>(limitation on obligations)</heading> <subheading>(highway trust fund)</subheading> <content>None of the funds in this Act shall be available for the implementation or execution of programs the obligations for which are in excess of $21,500,000,000 for Federal-aid highways and highway safety construction programs for fiscal year 1998.<page identifier="/us/stat/111/1432">111 STAT. 1432</page></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Federal-Aid Highways</heading> <appropriations level="small"> <heading>(liquidation of contract authorization)</heading> <subheading>(highway trust fund)</subheading> <content>For carrying out the provisions of title 23, United States Code, that are attributable to Federal-aid highways, including the National Scenic and Recreational Highway as authorized by 23 U.S.C. 148, not otherwise provided, including reimbursements for sums expended pursuant to the provisions of 23 U.S.C. 308, $20,800,000,000 or so much thereof as may be available in and derived from the Highway Trust Fund, to remain available until expended.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Right-of-Way Revolving Fund</heading> <appropriations level="small"> <heading>(limitation on direct loans)</heading> <subheading>(highway trust fund)</subheading> <content>None of the funds under this heading are available for obligations for right-of-way acquisition during fiscal year 1998.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Motor Carrier Safety Grants</heading> <appropriations level="small"> <heading>(liquidation of contract authorization)</heading> <subheading>(highway trust fund)</subheading> <content>For payment of obligations incurred in carrying out 49 U.S.C. 31102, $85,000,000, to be derived from the Highway Trust Fund and to remain available until expended: <proviso><i>Provided,</i> That none of the funds in this Act shall be available for the implementation or execution of programs the obligations for which are in excess of $84,825,000 for “Motor Carrier Safety Grants”.</proviso></content> </appropriations> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION</heading> <appropriations level="small"> <heading>Operations and Research</heading> <content>For expenses necessary to discharge the functions of the Secretary with respect to traffic and highway safety under part C of subtitle VI of title 49, United States Code, and chapter 301 of title 49, United States Code, $74,901,000, of which $40,674,000 shall remain available until September 30, 2000: <proviso><i>Provided,</i> That none of the funds appropriated by this Act may be obligated or expended to plan, finalize, or implement any rulemaking to add to section 575.104 of title 49 of the Code of Federal Regulations any requirement pertaining to a grading standard that is different from the three grading standards (treadwear, traction, and temperature resistance) already in effect.</proviso></content> </appropriations> <appropriations level="small"> <heading>Operations and Research</heading> <subheading>(highway trust fund)</subheading> <content>For expenses necessary to discharge the functions of the Secretary with respect to traffic and highway safety under 23 <page identifier="/us/stat/111/1433">111 STAT. 1433</page>U.S.C. 403 and section 2006 of the Intermodal Surface Transportation Efficiency Act of 1991 (Public Law 102–240), to be derived from the Highway Trust Fund, $72,061,000, of which $49,520,000 shall remain available until September 30, 2000.</content> </appropriations> <appropriations level="intermediate"> <heading>Highway Traffic Safety Grants</heading> <subheading>(liquidation of contract authorization)</subheading> <appropriations level="small"> <heading>(limitation on obligations)</heading> <subheading>(highway trust fund)</subheading> <content>For payment of obligations incurred carrying out the provisions of 23 U.S.C. 153, 402, 408, and 410, and chapter 303 of title 49, United States Code, to remain available until expended, $186,000,000, to be derived from the Highway Trust Fund: <proviso><i>Provided,</i> That, notwithstanding subsection 2009(b) of the Intermodal Surface Transportation Efficiency Act of 1991, none of the funds in this Act shall be available for the planning or execution of programs the total obligations for which, in fiscal year 1998, are in excess of $186,500,000 for programs authorized under 23 U.S.C. 402, 410, and chapter 303 of title 49, United States Code, of which $149,700,000 shall be for “State and community highway safety grants”, $2,300,000 shall be for the “National Driver Register”, and $34,500,000 shall be for section 410 “Alcohol-impaired driving counter-measures programs”:</proviso> <proviso><i>Provided further,</i> That none of these funds shall be used for construction, rehabilitation or remodeling costs, or for office furnishings and fixtures for State, local, or private buildings or structures:</proviso> <proviso><i>Provided further,</i> That not to exceed $5,268,000 of the funds made available for section 402 may be available for administering “State and community highway safety grants”:</proviso> <proviso><i>Provided further,</i> That not to exceed $150,000 of the funds made available for section 402 may be available for administering the highway safety grants authorized by section 1003(a)(7) of Public Law 102–240:</proviso> <proviso><i>Provided further,</i> That not to exceed $500,000 of the funds made available for section 410 “Alcohol-impaired driving counter-measures programs” shall be available for technical assistance to the States.</proviso></content> </appropriations> </appropriations> </appropriations> <appropriations level="major"> <heading>FEDERAL RAILROAD ADMINISTRATION</heading> <appropriations level="intermediate"> <heading>Office of the Administrator</heading> <content>For necessary expenses of the Federal Railroad Administration, not otherwise provided for, $20,290,000, of which $1,389,000 shall remain available until expended: <proviso><i>Provided,</i> That none of the funds in this Act shall be available for the planning or execution of a program making commitments to guarantee new loans under the Emergency Rail Services Act of 1970, as amended, and no new commitments to guarantee loans under section 211(a) or 211(h) of the Regional Rail Reorganization Act of 1973, as amended, shall be made:</proviso> <proviso><i>Provided further,</i> That, as part of the Washington Union<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t40/s817">40 USC 817 note</ref>.</p></sidenote> Station transaction in which the Secretary assumed the first deed of trust on the property and, where the Union Station Redevelopment Corporation or any successor is obligated to make payments on such deed of trust on the Secretary’s behalf, including payments on and after September 30, 1988, the Secretary is authorized to <page identifier="/us/stat/111/1434">111 STAT. 1434</page>receive such payments directly from the Union Station Redevelopment Corporation, credit them to the appropriation charged for the first deed of trust, and make payments on the first deed of trust with those funds:</proviso> <proviso><i>Provided further,</i> That such additional sums as may be necessary for payment on the first deed of trust may be advanced by the Administrator from unobligated balances available to the Federal Railroad Administration, to be reimbursed from payments received from the Union Station Redevelopment Corporation.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Railroad Safety</heading> <content>For necessary expenses in connection with railroad safety, not otherwise provided tor, $57,067,000, of which $5,511,000 shall remain available until expended: <proviso><i>Provided,</i> That notwithstanding any other provision of law, funds appropriated under this heading are available for the reimbursement of out-of-state travel and per diem costs incurred by employees of State governments directly supporting the Federal railroad safety program, including regulatory development and compliance-related activities.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Railroad Research and Development</heading> <content>For necessary expenses for railroad research and development, $20,758,000, to remain available until expended.</content> </appropriations> <appropriations level="intermediate"> <heading>Northeast Corridor Improvement Program</heading> <content>For necessary expenses related to Northeast Corridor improvements authorized by title VII of the Railroad Revitalization and Regulatory Reform Act of 1976, as amended (45 U.S.C. 851 et seq.) and 49 U.S.C. 24909, $250,000,000, to remain available until September 30, 2000, of which $12,000,000 shall be for the Pennsylvania Station Redevelopment Project.</content> </appropriations> <appropriations level="intermediate"> <heading>Railroad Rehabilitation and Improvement Program</heading> <content>The Secretary of Transportation is authorized to issue to the Secretary of the Treasury notes or other obligations pursuant to section 512 of the Railroad Revitalization and Regulatory Reform Act of 1976 (Public Law 94–210), as amended, in such amounts and at such times as may be necessary to pay any amounts required pursuant to the guarantee of the principal amount of obligations under sections 511 through 513 of such Act, such authority to exist as long as any such guaranteed obligation is outstanding: <proviso><i>Provided,</i> That no new loan guarantee commitments shall be made during fiscal year 1998.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Next Generation High-Speed Rail</heading> <content>For necessary expenses for Next Generation High-Speed Rail studies, corridor planning, development, demonstration, and implementation, $20,395,000, to remain available until expended: <proviso><i>Provided,</i> That funds under this heading may be made available for grants to States for high-speed rail corridor design, feasibility studies, environmental analyses, and track and signal improvements.</proviso><page identifier="/us/stat/111/1435">111 STAT. 1435</page></content> </appropriations> <appropriations level="intermediate"> <heading>Alaska Railroad Rehabilitation</heading> <content>To enable the Secretary of Transportation to make grants to the Alaska Railroad, $15,280,000 shall be for capital rehabilitation and improvements benefiting its passenger operations.</content> </appropriations> <appropriations level="intermediate"> <heading>Rhode Island Rail Development</heading> <content>For the costs associated with construction of a third track on the Northeast Corridor between Davisville and Central Falls, Rhode Island, with sufficient clearance to accommodate double stack freight cars, $10,000,000, to be matched by the State of Rhode Island or its designee on a dollar-for-dollar basis and to remain available until expended: <proviso><i>Provided,</i> That as a condition of accepting<sidenote><p class="indent0 firstIndent0 fontsize8">Contracts.</p></sidenote> such funds, the Providence and Worcester (P&W) Railroad shall enter into an agreement with the Secretary to reimburse Amtrak and/or the Federal Railroad Administration, on a dollar-for-dollar basis, up to the first $23,000,000 in damages resulting from the legal action initiated by the P&W Railroad under its existing contracts with Amtrak relating to the provision of vertical clearances between Davisville and Central Falls in excess of those required for present freight operations.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Grants to the National Railroad Passenger Corporation</heading> <content>To enable the Secretary of Transportation to make grants to the National Railroad Passenger Corporation authorized by 49 U.S.C. 24104, $543,000,000, to remain available until expended, of which $344,000,000 shall be available for operating losses, and $199,000,000 shall be for capital improvements: <proviso><i>Provided,</i> That if Amtrak reform legislation as required by section 977(f) of the Taxpayer Relief Act of 1997 is enacted into law prior to the distribution by the Secretary of any of the funds appropriated above for capital improvements, then the portion of this appropriation made available for capital improvements shall not be available for obligation and the Secretary shall not transfer any of the funds appropriated under this heading for capital improvements to Amtrak:</proviso> <proviso><i>Provided further,</i> That in the event Amtrak reform legislation required by section 977(f) of the Taxpayer Relief Act of 1997 is enacted into law after the distribution of some or all of the funds appropriated under this account for capital improvements are transferred by the Secretary to Amtrak, then the Secretary of the Treasury shall reduce the amount refunded to Amtrak under section 977 of the Taxpayer Relief Act of 1997 by an amount equal to the funds distributed to Amtrak under this heading for capital improvements and the portion of this appropriation made available for capital improvements shall not be available for obligation and no additional funds appropriated under this heading shall be transferred by the Secretary to Amtrak for capital improvements:</proviso> <proviso><i>Provided further,</i> That none of the funds provided for capital improvements may be transferred to operating losses to pay for debt service interest unless specifically authorized by law after the date of enactment of this Act:</proviso> <proviso><i>Provided further,</i> That the incurring of any obligation or commitment by the Corporation for the purchase of capital improvements with rands appropriated herein which is prohibited by this Act shall be deemed a violation of 31 U.S.C. 1341:</proviso> <proviso><i>Provided further,</i> That funding under this heading for capital improvements shall not be made available before July <page identifier="/us/stat/111/1436">111 STAT. 1436</page>1, 1998:</proviso> <proviso><i>Provided further,</i> That none of the funds herein appropriated shall be used for lease or purchase of passenger motor vehicles or for the hire of vehicle operators for any officer or employee, other than the president of the Corporation, excluding the lease of passenger motor vehicles for those officers or employees while in official travel status.</proviso></content> </appropriations> </appropriations> <appropriations level="major"> <heading>FEDERAL TRANSIT ADMINISTRATION</heading> <appropriations level="intermediate"> <heading>Administrative Expenses</heading> <content>For necessary administrative expenses of the Federal Transit Administration’s programs authorized by chapter 53 of title 49, United States Code, $45,738,000: <proviso><i>Provided,</i> That none of the funds in this Act shall be available for the execution of contracts under section 5327(c) of title 49, United States Code, in an aggregate amount that exceeds $15,000,000.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Formula Grants</heading> <content>For necessary expenses to carry out 49 U.S.C. 5307, 5310(a)(2), 5311, and 5336, to remain available until expended, $240,000,000: <proviso><i>Provided,</i> That no more than $2,500,000,000 of budget authority shall be available for these purposes:</proviso> <proviso><i>Provided further,</i> That of the funds provided under this heading for formula grants, no more than $150,000,000 may be used for operating assistance under 49 U.S.C. 5336(d):</proviso> <proviso><i>Provided further,</i> That the limitation on operating assistance provided under this heading shall, for urbanized areas of less than 200,000 in population, be no less than 75 percent of the amount of operating assistance such areas are eligible to receive under Public Law 103–331:</proviso> <proviso><i>Provided further,</i> That in the distribution of the limitation provided under this heading to urbanized areas that had a population under the 1990 census of 1,000,000 or more, the Secretary shall direct each such area to give priority consideration to the impact of reductions in operating assistance on smaller transit authorities operating within the area and to consider the needs and resources of such transit authorities when the limitation is distributed among all transit authorities operating in the area.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>University Transportation Centers</heading> <content>For necessary expenses for university transportation centers as authorized by 49 U.S.C. 5317(b), to remain available until expended, $6,000,000.</content> </appropriations> <appropriations level="intermediate"> <heading>Transit Planning and Research</heading> <content>For necessary expenses for transit planning and research as authorized by 49 U.S.C. 5303, 5311, 5313, 5314, and 5315, to remain available until expended, $92,000,000, of which $39,500,000 shall be for activities under Metropolitan Planning (49 U.S.C. 5303); $4,500,000 for activities under Rural Transit Assistance (49 U.S.C. 5311(b)(2)); $8,250,000 for activities under State Planning and Research (49 U.S.C. 5313(b)); $36,750,000 for activities including National Planning and Research (49 U.S.C. 5314 and 5313(a)); and $3,000,000 for National Transit Institute (49 U.S.C. 5315).<page identifier="/us/stat/111/1437">111 STAT. 1437</page></content> </appropriations> <appropriations level="intermediate"> <heading>Trust Fund Share of Expenses</heading> <appropriations level="small"> <heading>(liquidation of contract authorization)</heading> <subheading>(highway trust fund)</subheading> <content>For payment of obligations incurred in carrying out 49 U.S.C. 5338(a), $2,210,000,000, to remain available until expended and to be derived from the Highway Trust Fund: <proviso><i>Provided,</i> That $2,210,000,000 shall be paid from the Mass Transit Account of the Highway Trust Fund to the Federal Transit Administration’s formula grants account.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Discretionary Grants</heading> <appropriations level="small"> <heading>(limitation on obligations)</heading> <subheading>(highway trust fund)</subheading> <content>None of the funds in this Act shall be available for the implementation or execution of programs the obligations for which are in excess of $2,000,000,000 in fiscal year 1998 for grants under the contract authority in 49 U.S.C. 5338(b): <proviso><i>Provided,</i> That there shall be available for fixed guideway modernization, $800,000,000; there shall be available for the replacement, rehabilitation, and purchase of buses and related equipment and the construction of bus-related facilities, $400,000,000; and there shall be available for new fixed guideway systems $800,000,000, to be available as follows:</proviso> <list> <listItem><listContent class="indent1 fontsize10 depth0">$44,600,000 for the Atlanta-North Springs project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$1,000,000 for the Austin Capital metro project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$46,250,000 for the Boston Piers MOS–2 project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$1,000,000 for the Boston urban ring project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$5,000,000 for the Burlington-Essex, Vermont commuter rail project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$2,000,000 for the Canton-Akron-Cleveland commuter rail project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$1,500,000 for the Charleston monobeam rail project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$1,000,000 for the Charlotte South corridor transitway project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$500,000 for the Cincinnati Northeast/Northem Kentucky rail line project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$5,000,000 for the Clark County, Nevada fixed guideway project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$800,000 for the Cleveland Blue Line extension to Highland Hills project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$700,000 for the Cleveland Berea Red Line extension to Hopkins International Airport;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$1,000,000 for the Cleveland Waterfront Line extension project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$8,000,000 for the Dallas-Fort Worth RAILTRAN project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$11,000,000 for the DART North Central light rail extension project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$1,000,000 for the DeKalb County, Georgia light rail project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$23,000,000 for the Denver Southwest Corridor project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$20,000,000 for the New York East Side access project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$8,000,000 for the Florida Tri-County commuter rail project;<page identifier="/us/stat/111/1438">111 STAT. 1438</page></listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$2,000,000 for the Galveston, Texas rail trolley system project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$1,000,000 for the Houston Advanced Regional Bus project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$51,100,000 for the Houston Regional Bus project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$1,250,000 for the Indianapolis Northeast corridor project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$3,000,000 for the Jackson, Mississippi intermodal corridor project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$61,500,000 for the Los Angeles MOS–3 project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$31,000,000 for MARC commuter rail improvements;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$1,000,000 for the Memphis, Tennessee regional rail project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$5,000,000 for the Metro-Dade Transit east-west corridor project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$5,000,000 for the Miami-North 27th Avenue project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$1,000,000 for the Mission Valley East corridor project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$500,000 for the Nassau Hub rail link EIS project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$60,000,000 for the New Jersey Hudson-Bergen LRT project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$27,000,000 for the New Jersey Secaucus project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$6,000,000 for the New Orleans Canal Street corridor project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$2,000,000 for the New Orleans Desire Streetcar project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$12,000,000 for the North Carolina Research Triangle Park project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$4,000,000 for the Northern Indiana South Shore commuter rail project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$3,000,000 for the Oceanside-Escondido light rail project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$1,600,000 for the Oklahoma City MAPS corridor transit project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$2,000,000 for the Orange County transitway project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$31,800,000 for the Orlando Lynx light rail project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$500,000 for the Pennsylvania Strawberry Hill/Diamond Branch rail project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$4,000,000 for the Phoenix metropolitan area transit project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$5,000,000 for the Pittsburgh airport busway project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$63,400,000 for the Portland-Westside/Hillsboro project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$2,000,000 for the Roaring Fork Valley rail project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$20,300,000 for the Sacramento LRT project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$63,400,000 for the Salt Lake City South LRT project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$4,000,000 for the Salt Lake City regional commuter system project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$1,000,000 for the San Bernardino Metrolink project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$1,500,000 for the San Diego Mid-Coast corridor project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$29,900,000 for the San Francisco BART extension to the airport project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$15,000,000 for the San Juan Tren Urbano;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$21,400,000 for the San Jose Tasman LRT project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$18,000,000 for the Seattle-Tacoma light rail and commuter rail projects;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$30,000,000 for the St. Louis-St. Clair LRT extension project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$2,500,000 for the St. George Ferry terminal project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$500,000 for the Springfield-Branson, Missouri commuter rail project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$1,000,000 for the Tampa Bay regional rail project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$2,000,000 for the Tidewater, Virginia rail project;<page identifier="/us/stat/111/1439">111 STAT. 1439</page></listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$1,000,000 for the Toledo, Ohio rail project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$12,000,000 for the Twin Cities transitways projects;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$2,000,000 for the Virginia Rail Express Fredericksburg to Washington commuter rail project;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$2,500,000 for the Whitehall ferry terminal project; and</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">$3,000,000 for the Wisconsin central commuter rail project.</listContent></listItem> </list> </content></appropriations> </appropriations> <appropriations level="intermediate"> <heading>Mass Transit Capital Fund</heading> <appropriations level="small"> <heading>(liquidation of contract authorization)</heading> <subheading>(highway trust fund)</subheading> <content>For payment of obligations incurred in carrying out 49 U.S.C. 5338(b) administered by the Federal Transit Administration, $2,350,000,000, to be derived from the Highway Trust Fund and to remain available until expended.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Washington Metropolitan Area Transit Authority</heading> <content>For necessary expenses to carry out the provisions of section 14 of Public Law 96–184 and Public Law 101–551, $200,000,000, to remain available until expended.</content> </appropriations> </appropriations> <appropriations level="major"> <heading>SAINT LAWRENCE SEAWAY DEVELOPMENT CORPORATION</heading> <chapeau>The Saint Lawrence Seaway Development Corporation is hereby authorized to make such expenditures, within the limits of funds and borrowing authority available to the Corporation, and in accord with law, and to make such contracts and commitments without regard to fiscal year limitations as provided by section 104 of the Government Corporation Control Act, as amended, as may be necessary in carrying out the programs set forth in the Corporation’s budget for the current fiscal year.</chapeau> <appropriations level="intermediate"> <heading>Operations and Maintenance</heading> <subheading>(harbor maintenance trust fund)</subheading> <content>For necessary expenses for operation and maintenance of those portions of the Saint Lawrence Seaway operated and maintained by the Saint Lawrence Seaway Development Corporation, including the Great Lakes Pilotage functions delegated by the Secretary of Transportation, $11,200,000, to be derived from the Harbor Maintenance Trust Fund, pursuant to Public Law 99–662.</content> </appropriations> </appropriations> <appropriations level="major"> <heading>RESEARCH AND SPECIAL PROGRAMS ADMINISTRATION</heading> <appropriations level="intermediate"> <heading>Research and Special Programs</heading> <content>For expenses necessary to discharge the functions of the Research and Special Programs Administration, $28,450,000, of which $574,000 shall be derived from the Pipeline Safety Fund, and of which $4,950,000 shall remain available until September 30, 2000: <proviso><i>Provided,</i> That up to $1,200,000 in fees collected under 49 U.S.C. 5108(g) shall be deposited in the general fund of the Treasury as offsetting receipts:</proviso> <proviso><i>Provided further,</i> That there may be credited to this appropriation, to be available until expended, funds received from States, counties, municipalities, other public <page identifier="/us/stat/111/1440">111 STAT. 1440</page>authorities, and private sources for expenses incurred for training, for reports publication and dissemination, and for travel expenses incurred in performance of hazardous materials exemptions and approvals functions.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Pipeline Safety</heading> <appropriations level="small"> <heading>(pipeline safety fund)</heading> <subheading>(oilspill liability trust fund)</subheading> <content>For expenses necessary to conduct the functions of the pipeline safety program, for grants-in-aid to carry out a pipeline safety program, as authorized by 49 U.S.C. 60107, and to discharge the pipeline program responsibilities of the Oil Pollution Act of 1990, $31,300,000, of which $3,300,000 shall be derived from the Oil Spill Liability Trust Fund and shall remain available until September 30, 2000; and of which $28,000,000 shall be derived from the Pipeline Safety Fund, of which $14,839,000 shall remain available until September 30, 2000: <proviso><i>Provided,</i> That in addition to amounts made available for the Pipeline Safety Fund, $1,100,000 shall be available for grants to States for the development and establishment of one-call notification systems and shall be derived from amounts previously collected under 49 U.S.C. 60301, and that an additional $365,000 in amounts previously collected under 49 U.S.C. 60301 is available to conduct general functions of the pipeline safety program.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Emergency Preparedness Grants</heading> <subheading>(emergency preparedness fund)</subheading> <content>For necessary expenses to carry out 49 U.S.C. 5127(c), $200,000, to be derived from the Emergency Preparedness Fund, to remain available until September 30, 2000: <proviso><i>Provided,</i> That none of the funds made available by 49 U.S.C. 5116(i) and 5127(d) shall be made available for obligation by individuals other than the Secretary of Transportation, or his designee.</proviso></content> </appropriations> </appropriations> <appropriations level="major"> <heading>OFFICE OF INSPECTOR GENERAL</heading> <appropriations level="intermediate"> <heading>Salaries and Expenses</heading> <content>For necessary expenses of the Office of Inspector General to carry out the provisions of the Inspector General Act of 1978, as amended, $42,000,000: <proviso><i>Provided,</i> That none of the funds under this heading shall be for the conduct of contract audits.</proviso></content> </appropriations> </appropriations> <appropriations level="major"> <heading>SURFACE TRANSPORTATION BOARD</heading> <appropriations level="intermediate"> <heading>Salaries and Expenses</heading> <content>For necessary expenses of the Surface Transportation Board, including services authorized by 5 U.S.C. 3109, $13,853,000: <proviso><i>Provided,</i> That $2,000,000 in fees collected in fiscal year 1998 by the Surface Transportation Board pursuant to 31 U.S.C. 9701 shall be made available to this appropriation in fiscal year 1998:</proviso> <proviso><i>Provided further,</i> That any fees received in excess of $2,000,000 in fiscal <page identifier="/us/stat/111/1441">111 STAT. 1441</page>year 1998 shall remain available until expended, but shall not be available for obligation until October 1, 1998.</proviso></content> </appropriations> </appropriations> <num value="II">TITLE II</num> <heading>RELATED AGENCIES</heading> <subheading>ARCHITECTURAL AND TRANSPORTATION BARRIERS COMPLIANCE BOARD</subheading> <appropriations level="intermediate"> <heading>Salaries and Expenses</heading> <content>For expenses necessary for the Architectural and Transportation Barriers Compliance Board, as authorized by section 502 of the Rehabilitation Act of 1973, as amended, $3,640,000: <proviso><i>Provided,</i> That, notwithstanding any other provision of law, there may be credited to this appropriation funds received for publications and training expenses.</proviso></content> </appropriations> <appropriations level="major"> <heading>NATIONAL TRANSPORTATION SAFETY BOARD</heading> <appropriations level="intermediate"> <heading>Salaries and Expenses</heading> <content>For necessary expenses of the National Transportation Safety Board, including hire of passenger motor vehicles and aircraft; services as authorized by 5 U.S.C. 3109, but at rates for individuals not to exceed the per diem rate equivalent to the rate for a GS–18; uniforms, or allowances therefor, as authorized by law (5 U.S.C. 5901–5902) $48,371,000, of which not to exceed $2,000 may be used for official reception and representation expenses.</content> </appropriations> <appropriations level="intermediate"> <heading>Emergency Fund</heading> <content>For necessary expenses of the National Transportation Safety Board for accident investigations, including hire of passenger motor vehicles and aircraft; services as authorized by 5 U.S.C. 3109, but at rates for individuals not to exceed the per diem rate equivalent to the rate for a GS–18; uniforms, or allowances therefor, as authorized by law (5 U.S.C. 5901–5902), $1,000,000, to remain available until expended.</content> </appropriations> </appropriations> <num value="III">TITLE III</num> <heading>GENERAL PROVISIONS</heading> <subheading>(<inline class="smallCaps">including transfers of funds</inline>)</subheading> <section> <num value="301"><inline class="smallCaps">Sec</inline>. 301.</num> <content class="inline">During the current fiscal year applicable appropriations to the Department of Transportation shall be available for maintenance and operation of aircraft; hire of passenger motor vehicles and aircraft; purchase of liability insurance for motor vehicles operating in foreign countries on official department business; and uniforms, or allowances therefor, as authorized by law (5 U.S.C. 5901–5902).</content> </section> <section> <num value="302"><inline class="smallCaps">Sec</inline>. 302.</num> <content class="inline">Such sums as may be necessary for fiscal year 1998 pay raises for programs funded in this Act shall be absorbed within the levels appropriated in this Act or previous appropriations Acts.</content> </section> <section> <num value="303"><inline class="smallCaps">Sec</inline>. 303.</num> <content class="inline">Funds appropriated under this Act for expenditures<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s106">49 USC 106 note</ref>.</p></sidenote> by the Federal Aviation Administration shall be available: (1) except <page identifier="/us/stat/111/1442">111 STAT. 1442</page>as otherwise authorized by title VIII of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7701 et seq.) for expenses of primary and secondary schooling for dependents of Federal Aviation Administration personnel stationed outside the continental United States at costs for any given area not in excess of those of the Department of Defense for the same area, when it is determined by the Secretary that the schools, if any, available in the locality are unable to provide adequately for the education of such dependents; and (2) for transportation of said dependents between schools serving the area that they attend and their places of residence when the Secretary, under such regulations as may be prescribed, determines that such schools are not accessible by public means of transportation on a regular basis.</content> </section> <section> <num value="304"><inline class="smallCaps">Sec</inline>. 304.</num> <content class="inline">Appropriations contained in this Act for the Department of Transportation shall be available for services as authorized by 5 U.S.C. 3109, but at rates for individuals not to exceed the per diem rate equivalent to the rate for an Executive Level IV.</content> </section> <section> <num value="305"><inline class="smallCaps">Sec</inline>. 305.</num> <content class="inline">None of the funds in this Act shall be available for salaries and expenses of more than 107 political and Presidential appointees in the Department of Transportation: <proviso><i>Provided,</i> That none of the personnel covered by this provision may be assigned on temporary detail outside the Department of Transportation.</proviso></content> </section> <section> <num value="306"><inline class="smallCaps">Sec</inline>. 306.</num> <content class="inline">None of the funds in this Act shall be used for the planning or execution of any program to pay the expenses of, or otherwise compensate, non-Federal parties intervening in regulatory or adjudicatory proceedings funded in this Act.</content> </section> <section> <num value="307"><inline class="smallCaps">Sec</inline>. 307.</num> <content class="inline">None of the funds appropriated in this Act shall remain available for obligation beyond the current fiscal year, nor may any be transferred to other appropriations, unless expressly so provided herein.</content> </section> <section> <num value="308"><inline class="smallCaps">Sec</inline>. 308.</num> <content class="inline">The Secretary of Transportation may enter into grants, cooperative agreements, and other transactions with any person, agency, or instrumentality of the United States, any unit of State or local government, any educational institution, and any other entity in execution of the Technology Reinvestment Project authorized under the Defense Conversion, Reinvestment and Transition Assistance Act of 1992 and related legislation: <proviso><i>Provided,</i> That the authority provided in this section may be exercised without regard to section 3324 of title 31, United States Code.</proviso></content> </section> <section> <num value="309"><inline class="smallCaps">Sec</inline>. 309.</num><sidenote><p class="indent0 firstIndent0 fontsize8">Contracts.</p><p class="indent0 firstIndent0 fontsize8">Public information.</p></sidenote> <content class="inline">The expenditure of any appropriation under this Act for any consulting service through procurement contract pursuant to section 3109 of title 5, United States Code, shall be limited to those contracts where such expenditures are a matter of public record and available for public inspection, except where otherwise provided under existing law, or under existing Executive order issued pursuant to existing law.</content> </section> <section> <num value="310"><inline class="smallCaps">Sec</inline>. 310.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t23/s104">23 USC 104 note</ref>.</p></sidenote> <subsection class="inline"><num value="a">(a)</num> <content>For fiscal year 1998, the Secretary of Transportation shall distribute the obligation limitation for Federal-aid highways by allocation in the ratio which sums authorized to be appropriated for Federal-aid highways that are apportioned or allocated to each State for such fiscal year bear to the total of the sums authorized to be appropriated for Federal-aid highways that are apportioned or allocated to all the States for such fiscal year.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>During the period October 1 through December 31, 1997, no State shall obligate more than 25 percent of the amount distributed to such State under subsection (a), and the total of all State <page identifier="/us/stat/111/1443">111 STAT. 1443</page>obligations during such period shall not exceed 12 percent of the total amount distributed to all States under such subsection.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <chapeau>Notwithstanding subsections (a) and (b), the Secretary shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>provide all States with authority sufficient to prevent lapses of sums authorized to be appropriated for Federal-aid highways that have been apportioned to a State;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>after August 1, 1998, revise a distribution of the funds made available under subsection (a) if a State will not obligate the amount distributed during that fiscal year and redistribute sufficient amounts to those States able to obligate amounts in addition to those previously distributed during that fiscal year giving priority to those States having large unobligated balances of funds apportioned under sections 103(e)(4), 104, 144, and 160 of title 23, United States Code, and under sections 1013(c) and 1015 of Public Law 102–240; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>not distribute amounts authorized for administrative expenses and funded from the administrative takedown authorized by section 104(a) of title 23, United States Code, the Federal lands highway program, the intelligent transportation systems program, the Truman-Hobbs bridges funded under the discretionary bridge program, and amounts made available under sections 1040, 1047, 1064, 6001, 6005, 6006, 6023, and 6024 of Public Law 102–240, and 49 U.S.C. 5316, 5317, and 5338: <proviso><i>Provided,</i> That amounts made available under section 6005 of Public Law 102–240 shall be subject to the obligation limitation for Federal-aid highways and highway safety construction programs under the heading “Federal-Aid Highways” in this Act.</proviso></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <content>During the period October 1 through December 31, 1997, the aggregate amount of obligations under section 157 of title 23, United States Code, for projects covered under section 147 of the Surface Transportation Assistance Act of 1978, section 9 of the Federal-Aid Highway Act of 1981, sections 131(b), 131(j), and 404 of Public Law 97–424, sections 1061, 1103–1108, 4008, 6023(b)(8), and 6023(b)(10) of Public Law 102–240, and for projects authorized by Public Law 99–500 and Public Law 100–17, shall not exceed $277,431,840.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <content>Notwithstanding any other provision of law, none of the funds in this Act shall be available for the distribution of bonus limitation under the Federal-aid highways program.</content> </subsection> </section> <section> <num value="311"><inline class="smallCaps">Sec</inline>. 311.</num> <content class="inline">The limitations on obligations for the programs of<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s5338">49 USC 5338 note</ref>.</p></sidenote> the Federal Transit Administration shall not apply to any authority under 49 U.S.C. 5338, previously made available for obligation, or to any other authority previously made available for obligation under the discretionary grants program.</content> </section> <section> <num value="312"><inline class="smallCaps">Sec</inline>. 312.</num> <content class="inline">None of the funds in this Act shall be used to implement section 404 of title 23, United States Code.</content> </section> <section> <num value="313"><inline class="smallCaps">Sec</inline>. 313.</num> <content class="inline">None of the funds in this Act shall be available to plan, finalize, or implement regulations that would establish a vessel traffic safety fairway less than five miles wide between the Santa Barbara Traffic Separation Scheme and the San Francisco Traffic Separation Scheme.</content> </section> <section> <num value="314"><inline class="smallCaps">Sec</inline>. 314.</num> <content class="inline">Notwithstanding any other provision of law, airports<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s44502">49 USC 44502</ref>.</p></sidenote> may transfer, without consideration, to the Federal Aviation Administration (FAA) instrument landing systems (along with associated approach lighting equipment and runway visual range <page identifier="/us/stat/111/1444">111 STAT. 1444</page>equipment) which conform to FAA design and performance specifications, the purchase of which was assisted by a Federal airport-aid program, airport development aid program or airport improvement program grant. The FAA shall accept such equipment, which shall thereafter be operated and maintained by the FAA in accordance with agency criteria.</content> </section> <section> <num value="315"><inline class="smallCaps">Sec</inline>. 315.</num> <content class="inline">None of the funds in this Act shall be available to award a multiyear contract for production end items that: (1) includes economic order quantity or long lead time material procurement in excess of $10,000,000 in any one year of the contract; or (2) includes a cancellation charge greater than $10,000,000 which at the time of obligation has not been appropriated to the limits of the Government’s liability; or (3) includes a requirement that permits performance under the contract during the second and subsequent years of the contract without conditioning such performance upon the appropriation of funds: <proviso><i>Provided,</i> That this limitation does not apply to a contract in which the Federal Government incurs no financial liability from not buying additional systems, subsystems, or components beyond the basic contract requirements.</proviso></content> </section> <section> <num value="316"><inline class="smallCaps">Sec</inline>. 316.</num> <chapeau class="inline">For the purposes of funds made available under the heading “Formula Grants”, the term “Capital Project” includes a project for—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num><clause class="inline"><num value="i">(i)</num> <content>acquisition, construction, supervision, or inspection of a facility or equipment, including inspection thereof, for use in mass transportation; and</content></clause> <clause class="indent2 fontsize10"><num value="ii">(ii)</num> <content>expenses incidental to the acquisition or construction (including designing, engineering, location survey, mapping, acquiring rights-of-way, associated pre-revenue startup costs, and environmental mitigation), payments for rail trackage rights, intelligent transportation systems, relocation assistance, acquiring replacement housing sites, and acquiring, constructing, relocating, and rehabilitating replacement housing;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>rehabilitating a bus;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>remanufacturing a bus;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>overhauling rail rolling stock;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>preventive maintenance; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F)</num> <content>financing the operating costs of equipment and facilities used in mass transportation in urbanized areas with a population of less than 200,000.</content></subparagraph> </section> <section> <num value="317"><inline class="smallCaps">Sec</inline>. 317.</num> <content class="inline">Notwithstanding any other provision of law, and except for fixed guideway modernization projects, funds made available by this Act under “Federal Transit Administration, Discretionary grants” for projects specified in this Act or identified in reports accompanying this Act not obligated by September 30, 2000, shall be made available for other projects under 49 U.S.C. 5309.</content> </section> <section> <num value="318"><inline class="smallCaps">Sec</inline>. 318.</num> <content class="inline">Notwithstanding any other provision of law, any funds appropriated before October 1, 1993, under any section of chapter 53 of title 49, United States Code, that remain available for expenditure may be transferred to and administered under the most recent appropriation heading for any such section.</content> </section> <section> <num value="319"><inline class="smallCaps">Sec</inline>. 319.</num> <content class="inline">None of the funds in this Act may be used to compensate in excess of 350 technical staff-years under the federally funded research and development center contract between the Federal Aviation Administration and the Center for Advanced Aviation Systems Development during fiscal year 1998.</content> </section> <section> <num value="320"><inline class="smallCaps">Sec</inline>. 320.</num> <content class="inline">Funds provided in this Act for the Transportation Administrative Service Center (TASC) shall be reduced by <page identifier="/us/stat/111/1445">111 STAT. 1445</page>$3,000,000, which Emits fiscal year 1998 TASC obligational authority for elements of the Department of Transportation funded in this Act to no more than $118,800,000: <proviso><i>Provided,</i> That such reductions from the budget request shall be allocated by the Department of Transportation to each appropriations account in proportion to the amount included in each account for the Transportation Administrative Service Center.</proviso></content> </section> <section> <num value="321"><inline class="smallCaps">Sec</inline>. 321.</num> <content class="inline">Funds received by the Federal Highway Administration, Federal Transit Administration, and Federal Railroad Administration from States, counties, municipalities, other public authorities, and private sources for expenses incurred for training may be credited respectively to the Federal Highway Administration’s “Limitation on General Operating Expenses” account, the Federal Transit Administration’s “Transit Planning and Research” account, and to the Federal Railroad Administration’s “Railroad Safety” account, except for State rail safety inspectors participating in training pursuant to 49 U.S.C. 20105.</content> </section> <section> <num value="322"><inline class="smallCaps">Sec</inline>. 322.</num> <content class="inline">None of the funds in this Act shall be available to prepare, propose, or promulgate any regulations pursuant to title V of the Motor Vehicle Information and Cost Savings Act (49 U.S.C. 32901 et seq.) prescribing corporate average fuel economy standards for automobiles, as defined in such title, in any model year that differs from standards promulgated for such automobiles prior to enactment of this section.</content> </section> <section> <num value="323"><inline class="smallCaps">Sec</inline>. 323.</num> <content class="inline">None of the funds in this Act may be used for planning, engineering, design, or construction of a sixth runway at the Denver International Airport, Denver, Colorado: <proviso><i>Provided,</i> That this provision shall not apply in any case where the Administrator of the Federal Aviation Administration determines, in writing, that safety conditions warrant obligation of such funds:</proviso> <proviso><i>Provided further,</i> That funds may be used for activities related to planning or analysis of airport noise issues related to the sixth runway project.</proviso></content> </section> <section> <num value="324"><inline class="smallCaps">Sec</inline>. 324.</num> <content class="inline">Notwithstanding 31 U.S.C. 3302, funds received by the Bureau of Transportation Statistics from the sale of data products, for necessary expenses incurred pursuant to 49 U.S.C. 111 may be credited to the Federal-aid highways account for the purpose of reimbursing the Bureau for such expenses: <proviso><i>Provided,</i> That such funds shall not be subject to the obligation limitation for Federal-aid highways and highway safety construction.</proviso></content> </section> <section> <num value="325"><inline class="smallCaps">Sec</inline>. 325.</num> <content class="inline">None of the funds in this Act may be obligated or expended for employee training which: (1) does not meet identified needs for knowledge, skills and abilities bearing directly upon the performance of official duties; (2) contains elements likely to induce high levels of emotional response or psychological stress in some participants; (3) does not require prior employee notification of the content and methods to be used in the training and written end of course evaluations; (4) contains any methods or content associated with religious or quasi-religious belief systems or “new age” belief systems as defined in Equal Employment Opportunity Commission Notice N–915.022, dated September 2, 1988; (5) is offensive to, or designed to change, participants’ personal values or lifestyle outside the workplace; or (6) includes content related to human immunodeficiency virus/acquired immune deficiency syndrome (HIV/AIDS) other than that necessary to make employees more aware of the medical ramifications of HIV/AIDS and the workplace rights of HIV-positive employees.<page identifier="/us/stat/111/1446">111 STAT. 1446</page></content> </section> <section> <num value="326"><inline class="smallCaps">Sec</inline>. 326.</num> <content class="inline">None of the funds in this Act shall, in the absence of express authorization by Congress, be used directly or indirectly to pay for any personal service, advertisement, telegram, telephone, letter, printed or written matter, or other device, intended or designed to influence in any manner a Member of Congress, to favor or oppose, by vote or otherwise, any legislation or appropriation by Congress, whether before or after the introduction of any bill or resolution proposing such legislation or appropriation: <proviso><i>Provided,</i> That this shall not prevent officers or employees of the Department of Transportation or related agencies funded in this Act from communicating to Members of Congress on the request of any Member or to Congress, through the proper official channels, requests for legislation or appropriations which they deem necessary for the efficient conduct of the public business.</proviso></content> </section> <section> <num value="327"><inline class="smallCaps">Sec</inline>. 327.</num> <content class="inline">None of the funds in this Act may be used to support Federal Transit Administration’s field operations and oversight of the Washington Metropolitan Area Transit Authority in any location other than from the Washington, D.C. metropolitan area.</content> </section> <section> <num value="328"><inline class="smallCaps">Sec</inline>. 328.</num> <content class="inline">Not to exceed $1,000,000 of the funds provided in this Act for the Department of Transportation shall be available for the necessary expenses of advisory committees.</content> </section> <section> <num value="329"><inline class="smallCaps">Sec</inline>. 329.</num> <content class="inline">Notwithstanding any other provision of law, the Secretary may use funds appropriated under this Act, or any subsequent Act, to administer and implement the exemption provisions of 49 CFR 580.6 and to adopt or amend exemptions from the disclosure requirements of 49 CFR part 580 for any class or category of vehicles that the Secretary deems appropriate.</content> </section> <section> <num value="330"><inline class="smallCaps">Sec</inline>. 330.</num> <content class="inline">No funds other than those appropriated to the Surface Transportation Board or fees collected by the Board shall be used for conducting the activities of the Board.</content> </section> <section> <num value="331"><inline class="smallCaps">Sec</inline>. 331.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Compliance With Buy American Act</inline>.—</heading><content>None of the funds made available in this Act may be expended by an entity unless the entity agrees that in expending the funds the entity will comply with the Buy American Act (41 U.S.C. 10a–10c).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Sense of Congress; Requirement Regarding Notice</inline>.—</heading><paragraph class="inline"><num value="1">(1)</num> <content>Purchase of American-made equipment and products.—In the case of any equipment or product that may be authorized to be purchased with financial assistance provided using funds made available in this Act, it is the sense of the Congress that entities receiving the assistance should, in expending the assistance, purchase only American-made equipment and products to the greatest extent practicable.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Notice to recipients of assistance</inline>.—</heading><content>In providing financial assistance using funds made available in this Act, the head of each Federal agency shall provide to each recipient of the assistance a notice describing the statement made in paragraph (1) by the Congress.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Prohibition of Contracts With Persons Falsely Labeling Products as Made in America</inline>.—</heading><content>If it has been finally determined by a court or Federal agency that any person intentionally affixed a label bearing a “Made in America” inscription, or any inscription with the same meaning, to any product sold in or shipped to the United States that is not made in the United States, the person shall be ineligible to receive any contract or subcontract made with funds made available in this Act, pursuant to the debarment, suspension, and ineligibility procedures described <page identifier="/us/stat/111/1447">111 STAT. 1447</page>in sections 9.400 through 9.409 of title 48, Code of Federal Regulations.</content> </subsection> </section> <section> <num value="332"><inline class="smallCaps">Sec</inline>. 332.</num> <content class="inline">Notwithstanding any other provision of law, receipts, in amounts determined by the Secretary, collected from users of fitness centers operated by or for the Department of Transportation shall be available to support the operation and maintenance of those facilities.</content> </section> <section> <num value="333"><inline class="smallCaps">Sec</inline>. 333.</num> <content class="inline">None of the funds made available in this Act may be used for improvements to the Miller Highway in New York City, New York.</content> </section> <section> <num value="334"><inline class="smallCaps">Sec</inline>. 334.</num> <content class="inline">None of the funds in this Act shall be available to implement or enforce regulations that would result in the withdrawal of a slot from an air carrier at O’Hare International Airport under section 93.223 of title 14 of the Code of Federal Regulations in excess of the total slots withdrawn from that air carrier as of October 31, 1993 if such additional slot is to be allocated to an air carrier or foreign air carrier under section 93.217 of title 14 of the Code of Federal Regulations.</content> </section> <section> <num value="335"><inline class="smallCaps">Sec</inline>. 335.</num> <content class="inline">Notwithstanding any other provision of law, of<sidenote><p class="indent0 firstIndent0 fontsize8">Alaska.</p></sidenote> amounts made available under Federal Aviation Administration “Operations”, the FAA shall provide personnel at Dutch Harbor, Alaska to provide real-time weather and runway observation and other such functions to help ensure the safety of aviation operations.</content> </section> <section> <num value="336"><inline class="smallCaps">Sec</inline>. 336.</num> <content class="inline">Notwithstanding 49 U.S.C. 41742, no essential air service shall be provided to communities in the 48 contiguous States that are located fewer than 70 highway miles from the nearest large and medium hub airport, or that require a rate of subsidy per passenger in excess of $200 unless such point is greater than 210 miles from the nearest large or medium hub airport.</content> </section> <section> <num value="337"><inline class="smallCaps">Sec</inline>. 337.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>For purposes of the exception set forth in section 29(a)(2) of the International Air Transportation Competition Act of 1979 (Public Law 96–192; 94 Stat. 48), the term “passenger capacity of 56 passengers or less” includes any aircraft, except aircraft exceeding gross aircraft weight of 300,000 pounds, reconfigured to accommodate 56 or fewer passengers if the total number of passenger seats installed on the aircraft does not exceed 56.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Inclusion of Certain States in Exemption</inline>.—</heading><content>The first sentence of section 29(c) of the International Air Transportation Competition Act of 1979 (Public Law 96–192; 94 Stat. 48 et seq.) is amended by inserting “<quotedText>Kansas, Alabama, Mississippi,</quotedText>” before “and Texas”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Safety Assurance</inline>.—</heading><content>The Administrator of the Federal<sidenote><p class="indent0 firstIndent0 fontsize8">Notification.</p></sidenote> Aviation Administration shall monitor the safety of flight operations in the Dallas-Fort Worth metropolitan area and take such actions as may be necessary to ensure safe aviation operations. If the Administrator must restrict aviation operations in the Dallas-Fort Worth area to ensure safety, the Administrator shall notify the House and Senate Committees on Appropriations as soon as possible that an unsafe airspace management situation existed requiring the restrictions.</content> </subsection> </section> <section> <num value="338"><inline class="smallCaps">Sec</inline>. 338.</num> <content class="inline">Rebates, refunds, incentive payments, minor fees and other funds received by the Department from travel management centers, charge card programs, the subleasing of building space, and miscellaneous sources are to be credited to appropriations of the Department and allocated to elements of the <page identifier="/us/stat/111/1448">111 STAT. 1448</page>Department using fair and equitable criteria and such funds shall be available until December 31, 1998.</content> </section> <section> <num value="339"><inline class="smallCaps">Sec</inline>. 339.</num> <content class="inline">Notwithstanding any other provision of law, the Department of the Navy is directed to transfer the USNS EDENTON (ATS–1), currently in Inactive Ship status, to the United States Coast Guard.</content> </section> <section> <num value="340"><inline class="smallCaps">Sec</inline>. 340.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s47107">49 USC 47107 note</ref>.</p></sidenote> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>The Congress finds that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>Congress has the authority under article I, section 8 of the Constitution to regulate the air commerce of the United States;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><content> section 47107 of title 49, United States Code, prohibits the diversion of certain revenue generated by a public airport as a condition of receiving a project grant;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>a grant recipient that uses airport revenues for purposes that are not airport-related in a manner inconsistent with chapter 471 of title 49, United States Code, illegally diverts airport revenues;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>illegal diversion of airport revenues undermines the interest of the United States in promoting a strong national air transportation system;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>the policy of the United States that airports should be as self-sustaining as possible and that revenues generated at airports should not be diverted from airport purposes was stated by Congress in 1982 and reaffirmed and strengthened in 1987, 1994, and 1996;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>certain airports are constructed on lands that may have belonged, at one time, to Native Americans, Native Hawaiians, or Alaska Natives;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <content>contrary to the prohibition against diverting airport revenues from airport purposes under section 47107 of title 49, United States Code, certain payments from airport revenues may have been made for the betterment of Native Americans, Native Hawaiians, or Alaska Natives based upon the claims related to lands ceded to the United States;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8)</num> <content>Federal law prohibits diversions of airport revenues obtained from any source whatsoever to occur in the future whether related to claims for periods of time prior to or after the date of enactment of this Act; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9)</num> <content>because of the special circumstances surrounding such past diversions of airport revenues for the betterment of Native Americans, Native Hawaiians, or Alaska Natives, it is in the national interest that amounts from airport revenues previously received by any entity for the betterment of Native Americans, Native Hawaiians, or Alaska Natives, as specified in subsection (b) of this section, should not be subject to repayment.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Termination of Repayment Responsibility</inline>.—</heading><content>Notwithstanding the provisions of 47107 of title 49, United States Code, or any other provision of law, monies paid for claims related to ceded lands and diverted from airport revenues and received prior to April 1, 1996, by any entity for the betterment of Native Americans, Native Hawaiians, or Alaska Natives, shall not be subject to repayment.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Prohibition on Further Diversion</inline>.—</heading><content>There shall be no further payment of airport revenues for claims related to ceded lands, whether characterized as operating expenses, rent, or otherwise, and whether related to claims for periods of time prior to or after the date of enactment of this Act.<page identifier="/us/stat/111/1449">111 STAT. 1449</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Clarification</inline>.—</heading><content>Nothing in this Act shall be construed to affect any existing Federal statutes, enactments, or trust obligations created thereunder, or any statute of the several States that define the obligations of such States to Native Americans, Native Hawaiians, or Alaska Natives in connection with ceded lands, except to make clear that airport revenues may not be used to satisfy such obligations.</content> </subsection> </section> <section> <num value="341"><inline class="smallCaps">Sec</inline>. 341.</num> <heading><inline class="smallCaps">Limitation on Funds Used To Enforce Regulations Regarding Animal Fats and Vegetable Oils</inline>.—</heading><chapeau>None of the funds made available in this Act may be used by the Coast Guard to issue, implement, or enforce a regulation or to establish an interpretation or guideline under the Edible Oil Regulatory Reform Act (Public Law 104–55), or the amendments made by that Act, that does not recognize and provide for, with respect to fats, oils, and greases (as described in that Act, or the amendments made by that Act) differences in—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>physical, chemical, biological, and other relevant properties; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>environmental effects.</content></paragraph> </section> <section> <num value="342"><inline class="smallCaps">Sec</inline>. 342.</num> <content class="inline">Notwithstanding the provisions of any other law, rule or regulation, the Secretary of Transportation is authorized to allow the issuer of any preferred stock heretofore sold to the Department to redeem or repurchase such stock upon the payment to the Department of an amount determined by the Secretary.</content> </section> <section> <num value="343"><inline class="smallCaps">Sec</inline>. 343.</num> <content class="inline">Subsection (d)(4) of 49 U.S.C. 31112 is amended by striking “<quotedText>September 30, 1997</quotedText>” and inserting “<quotedText>February 28, 1998</quotedText>”.</content> </section> <section> <num value="344"><inline class="smallCaps">Sec</inline>. 344.</num> <content class="inline">None of the funds in this Act shall be used to enforce against air carriers, conducting operations under part 135 of the Federal Aviation Administration (FAA) regulations (14 CFR 135.1 et seq.) that are not scheduled operations (as defined in 14 CFR 119.3), the requirement in section 44936(f)(1) of title 49, United States Code that records be checked before hiring an individual as a pilot, until the FAA determines, in writing, that it can furnish to such air carriers the requested records within 30 days, as required by section 44936(f)(5) of title 49, United States Code. If the Administrator cannot make the determination, in writing, within 150 days after enactment of this Act, then the Administrator shall report to the Committees on Appropriations, the Senate Committee on Commerce, Science, and Transportation, and the House Committee on Transportation and Infrastructure, the reasons why the determination cannot be made.</content> </section> <section> <num value="345"><inline class="smallCaps">Sec</inline>. 345.</num> <heading><inline class="smallCaps">Exemption Authority for Air Service To Slot-Controlled Airports</inline>.—</heading><content>Section 41714 of title 49, United States Code, is amended by adding at the end thereof the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="i">“(i)</num> <heading><inline class="smallCaps">Expeditious Consideration of Certain Exemption Requests</inline>.—</heading><content>Within 120 days after receiving an application for an exemption under subsection (a)(2) to improve air service between a nonhub airport (as defined in section 41731(a)(4)) and a high density airport subject to the exemption authority under subsection (a), the Secretary shall grant or deny the exemption. The Secretary<sidenote><p class="indent0 firstIndent0 fontsize8">Notification.</p></sidenote> shall notify the Senate Committee on Commerce, Science, and Transportation and the House Committee on Transportation and Infrastructure of the grant or denial within 14 calendar days after the determination and state the reasons for the determination.”.</content> </subsection> </quotedContent> </content></section> <subsection class="indent0 fontsize10"> <num value="346"><inline class="smallCaps">Sec</inline>. 346.</num> <subsection class="inline"><num value="a">(a)</num> <content>As soon as practicable after the date of enactment<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s301">49 USC 301 note</ref>.</p></sidenote> of this Act, the Secretary of Transportation, acting for the Department of Transportation, may take receipt of such equipment and <page identifier="/us/stat/111/1450">111 STAT. 1450</page>sites of the Ground Wave Emergency Network (referred to in this section as “GWEN”) as the Secretary of Transportation determines to be necessary for the establishment of a nationwide system to be known as the “Nationwide Differential Global Positioning System” (referred to in this section as “NDGPS”).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <chapeau>As soon as practicable after the date of enactment of this Act, the Secretary of Transportation may establish the NDGPS. In establishing the NDGPS, the Secretary of Transportation may—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>if feasible, reuse GWEN equipment and sites transferred to the Department of Transportation under subsection (a);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>to the maximum extent practicable, use contractor services to install the NDGPS;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>modify the positioning system operated by the Coast Guard at the time of the establishment of the NDGPS to integrate the reference stations made available pursuant to subsection (a);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>in cooperation with the Secretary of Commerce, ensure that the reference stations referred to in paragraph (3) are compatible with, and integrated into, the Continuously Operating Reference Station (commonly referred to as “CORS”) system of the National Geodetic Survey of the Department of Commerce; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>in cooperation with the Secretary of Commerce, investigate the use of the NDGPS reference stations for the Global Positioning System Integrated Precipitable Water Vapor System of the National Oceanic and Atmospheric Administration.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <chapeau>The Secretary of Transportation may—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>manage and operate the NDGPS;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>ensure that the service of the NDGPS is provided without the assessment of any user fee; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>in cooperation with the Secretary of Defense, ensure that the use of the NDGPS is denied to any enemy of the United States.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <content>In any case in which the Secretary of Transportation determines that contracting for the maintenance of 1 or more NDGPS reference stations is cost-effective, the Secretary of Transportation may enter into a contract to provide for that maintenance.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <chapeau>The Secretary of Transportation may—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in cooperation with appropriate representatives of private industries and universities and officials of State governments—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>investigate improvements (including potential improvements) to the NDGPS;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>develop standards for the NDGPS; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>sponsor the development of new applications for the NDGPS; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>provide for the continual upgrading of the NDGPS to improve performance and address the needs of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>the Federal Government;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>State and local governments; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>the general public.</content></subparagraph> </paragraph> </subsection> </subsection> <section> <num value="347"><inline class="smallCaps">Sec</inline>. 347.</num> <content class="inline">The Secretary of Transportation is authorized to transfer funds appropriated to the Coast Guard in Public Law 102–368 in order to pay rent assessments by the General Services Administration related to prior year space needs of the Department: <page identifier="/us/stat/111/1451">111 STAT. 1451</page><proviso><i>Provided,</i> That prior to any such transfer, notification shall be<sidenote><p class="indent0 firstIndent0 fontsize8">Notification.</p></sidenote> provided to the House and Senate Committees on Appropriations.</proviso></content> </section> <section> <num value="348"><inline class="smallCaps">Sec</inline>. 348.</num> <subsection class="inline"><num value="a">(a)</num> <content>Subsection (b) of section 642 of the Treasury and General Government Appropriations Act, 1998, is amended Ante, p. 1318. by inserting “<quotedText>other than a Member of Congress,</quotedText>” after “Code,”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content><p class="indent0 fontsize10">Paragraph (1) of section 642(c) of such Act is amended by striking “<quotedText>(1)(A) subject to subparagraph (B),</quotedText>” and inserting “<quotedText>(1)</quotedText>”, and by striking “<quotedText>December 31, 1998</quotedText>” and all that follows through the end and inserting “<quotedText>December 31, 1998;</quotedText>”.</p> <p class="indent0 fontsize10">This Act may be cited as the “<shortTitle role="act">Department of Transportation and Related Agencies Appropriations Act, 1998</shortTitle>”.</p> </content></subsection> </section> Approved October 27, 1997.
LEGISLATIVE HISTORY—H.R. 2169 (S. 1048): HOUSE REPORTS: Nos. 105–188 (Comm. on Appropriations) and 105–313 (Comm. of Conference). SENATE REPORTS: No. 105–55 accompanying S. 1048 (Comm. on Appropriations). CONGRESSIONAL RECORD, Vol. 143 (1997):

July 23, considered and passed House.

July 29, 30, considered and passed Senate, amended.

Oct. 9, House and Senate agreed to conference report.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):

Oct. 27, Presidential statement.

Nov. 1, Presidents special message on line item veto.

 FEDERAL REGISTER, Vol. 62 (1997):

Nov. 4, Cancellation of items pursuant to the Line Item Veto Act.

 Public Law 105–67: To confer status as an honorary veteran of the United States Armed Forces on Leslie Townes (Bob) Hope. Public Law67 Public Law 105–67 111 Stat. 1452 1997-10-30 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1452 Public Law105–67 105th Congress
Joint Resolution To confer status as an honorary veteran of the United States Armed Forces on Leslie Townes (Bob) Hope.

Oct. 30, 1997

[H.J. Res. 75]

 Whereas the United States has never before conferred status as an honorary veteran of the United States Armed Forces on an individual, and such status is and should remain an extraordinary honor not lightly conferred nor frequently granted; Whereas the lifetime of accomplishments and service of Leslie Townes (Bob) Hope on behalf of United States military servicemembers fully justifies the conferring of such status; Whereas Leslie Townes (Bob) Hope is himself not a veteran, having attempted to enlist in the Armed Forces to serve his country during World War II, but being informed that the greatest service he could provide the Nation was as a civilian entertainer for the troops; Whereas during, World War II, the Korean Conflict, the Vietnam War, and the Persian Gulf War and throughout the Cold War, Bob Hope traveled to visit and entertain millions of United States servicemembers in numerous countries, on ships at sea, and in combat zones ashore; Whereas Bob Hope has been awarded the Congressional Gold Medal, the Presidential Medal of Freedom, the Distinguished Service Medal of each of the branches of the Armed Forces, and more than 100 citations and awards from national veterans service organizations and civic and humanitarian organizations; and Whereas Bob Hope has given unselfishly of his time for over a half century to be with United States servicemembers on foreign shores, working tirelessly to bring a spirit of humor and cheer to millions of servicemembers during their loneliest moments, and thereby extending for the American people a touch of home away from home: Now, therefore, be it Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,
That Congress— (1) extends its gratitude, on behalf of the American people, to Leslie Townes (Bob) Hope for his lifetime of accomplishments and service on behalf of United States military servicemembers; and (2) confers upon Leslie Townes (Bob) Hope the status of an honorary veteran of the United States Armed Forces.
Approved October 30, 1997.
LEGISLATIVE HISTORY—H.J. Res. 75: HOUSE REPORTS: No. 105–109 (Comm. on Veterans’ Affairs). CONGRESSIONAL RECORD, Vol. 143 (1997):

June 3, considered and passed House.

Sept. 9, considered and passed Senate.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):

Oct. 30, Presidential statement.

 Public Law 105–68: Making further continuing appropriations for the fiscal year 1998, and for other purposes. Public Law68 Public Law 105–68 111 Stat. 1453 1997-11-07 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1453 Public Law105–68 105th Congress
Joint Resolution Making further continuing appropriations for the fiscal year 1998, and for other purposes.

Nov. 7, 1997

[H.J. Res. 101]

 Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,
That section 106(3) of Public Law 105–46 is further amended by striking “November

Ante, pp. 1156, 1343.

 7, 1997” and inserting in lieu thereof “November 9, 1997”, and each provision amended by sections 122 and 123 of such public

Ante, p. 1158.

 law shall be applied as if “November 9, 1997” was substituted for “October 23, 1997”.
Approved November 7, 1997.
LEGISLATIVE HISTORY—H.J. Res. 101: CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 7, considered and passed House and Senate.

 Public Law 105–69: Making further continuing appropriations for the fiscal year 1998, and for other purposes. Public Law69 Public Law 105–69 111 Stat. 1454 1997-11-09 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1454 Public Law105–69 105th Congress
Joint Resolution Making further continuing appropriations for the fiscal year 1998, and for other purposes.

Nov. 9, 1997

[H.J. Res. 104]

 Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,
That section 106(3) of Public Law 105–46 is further amended by striking “November 9, 1997” and inserting in lieu thereof “November 10, 1997”, and each provision amended by sections 122 and 123 of such public law shall be applied as if “November 10, 1997” was substituted for “October 23, 1997”.
Approved November 9, 1997.
LEGISLATIVE HISTORY—H.J. Res. 104: CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 9, considered and passed House and Senate.

 Public Law 105–70: To designate the facility of the United States Postal Service located at 551 Kingstown Road in South Kingstown, Rhode Island, as the “David B. Champagne Post Office Building”. Public Law70 Public Law 105–70 111 Stat. 1455 1997-11-10 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1455 Public Law105–70 105th Congress
An Act To designate the facility of the United States Postal Service located at 551 Kingstown Road in South Kingstown, Rhode Island, as the “David B. Champagne Post Office Building”.

Nov. 10, 1997

[H.R. 2013]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. DESIGNATION. The facility of the United States Postal Service located at 551 Kingstown Road in South Kingstown, Rhode Island, shall be known and designated as the “David B. Champagne Post Office Building”.
SEC. 2. REFERENCES. Any reference in a law, map, regulation, document, paper, or other record of the United States to the United States Post Office building referred to in section 1 shall be deemed to be a reference to the “David B. Champagne Post Office Building”.
Approved November 10, 1997.
LEGISLATIVE HISTORY—H.R. 2013 (S. 973): CONGRESSIONAL RECORD, Vol. 143 (1997):

Oct. 21, considered and passed House.

Oct. 23, considered and passed Senate.

 Public Law 105–71: Making further continuing appropriations for the fiscal year 1998, and for other purposes. Public Law71 Public Law 105–71 111 Stat. 1456 1997-11-10 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1456 Public Law105–71 105th Congress
Joint Resolution Making further continuing appropriations for the fiscal year 1998, and for other purposes.

Nov. 10, 1997

[H.J. Res. 105]

 Resolved, by the Senate and House of Representatives of the United States of America in Congress assembled,
That section 106(3) of Public Law 105–46 is further amended by striking “November 10, 1997” and inserting in lieu thereof “November 14, 1997”, and each provision amended by sections 122 and 123 of such public law shall be applied as if “November 14, 1997” was substituted for “October 23, 1997”.
Approved November 10, 1997.
LEGISLATIVE HISTORY—H.J. Res. 105: CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 9, considered and passed House.

Nov. 10, considered and passed Senate.

 Public Law 105–72: To amend title I of the Employee Retirement Income Security Act of 1974 to clarify treatment of investment managers under such title. Public Law72 Public Law 105–72 111 Stat. 1457 1997-11-10 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1457 Public Law105–72 105th Congress
An Act To amend title I of the Employee Retirement Income Security Act of 1974 to clarify treatment of investment managers under such title.

Nov. 10, 1997

[S. 1227]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. INVESTMENT MANAGERS UNDER ERISA TO INCLUDE FIDUCIARIES REGISTERED SOLELY UNDER STATE LAW ONLY IF FEDERAL REGISTRATION PROHIBITED UNDER RECENTLY ENACTED PROVISIONS. (a) In General.—Section 3(38)(B) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002(38)(B)) is amended— (1) by redesignating clauses (ii) and (iii) as clauses (iii) and (iv), respectively; and (2) by striking “who is” and all that follows through clause (i) and inserting the following: “who (i) is registered as an investment adviser under the Investment Advisers Act of 1940; (ii) is not registered as an investment adviser under such Act by reason of paragraph (1) of section 203A(a) of such Act, is registered as an investment adviser under the laws of the State (referred to in such paragraph (1)) in which it maintains its principal office and place of business, and, at the time the fiduciary last filed the registration form most recently filed by the fiduciary with such State in order to maintain the fiduciary’s registration under the laws of such State, also filed a copy of such form with the Secretary;”. (b) Availability of Documents Via Filing Depository.—

29 USC 1002 note.

A fiduciary shall be treated as meeting the requirements of section 3(38)(B)(ii) of the Employee Retirement Income Security Act of 1974 (as amended by subsection (a)) relating to provision to the Secretary of Labor of a copy of the form referred to therein, if a copy of such form (or substantially similar information) is available to the Secretary of Labor from a centralized electronic or other record-keeping database. (c) Effective Date.—The amendments made by subsection

29 USC 1002 note.

 (a) shall take effect on July 8, 1997, except that the requirement of section 3(38)(B)(ii) of the Employee Retirement Income Security Act of 1974 (as amended by this Act) for filing with the Secretary of Labor of a copy of a registration form which has been filed with a State before the date of the enactment of this Act, or is to be filed with a State during the 1-year period beginning 111 STAT. 1458with such date, shall be treated as satisfied upon the filing of such a copy with the Secretary at any time during such 1-year period. This section shall supersede section 308(b) of the National Securities Markets Improvement Act of 1996 (and the amendment made thereby).
Approved November 10, 1997.
LEGISLATIVE HISTORY—S. 1227: CONGRESSIONAL RECORD, Vol. 143 (1997):

Sept. 26, considered and passed Senate.

Oct. 28, considered and passed House.

 Public Law 105–73: To amend the Immigration and Nationality Act to exempt internationally adopted children 10 years of age or younger from the immunization requirement in section 212(a)(1)(A)(ii) of such Act. Public Law73 Public Law 105–73 111 Stat. 1459 1997-11-12 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1459 Public Law105–73 105th Congress
An Act To amend the Immigration and Nationality Act to exempt internationally adopted children 10 years of age or younger from the immunization requirement in section 212(a)(1)(A)(ii) of such Act.

Nov. 12, 1997

[H.R. 2464]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. EXEMPTION FOR INTERNATIONALLY ADOPTED CHILDREN 10 YEARS OF AGE OR YOUNGER FROM IMMUNIZATION REQUIREMENT. Section 212(a)(1) of the Immigration and Nationality Act (8 U.S.C. 1182(a)(1)) is amended— (1) in subparagraph (A)(ii), by inserting “except as provided in subparagraph (C),” after “(ii)”; and (2) by adding at the end the following: “(C) Exception from immunization requirement for adopted children 10 years of age or younger.—Clause (ii) of subparagraph (A) shall not apply to a child who— “(i) is 10 years of age or younger, “(ii) is described in section 101(b)(1)(F), and “(iii) is seeking an immigrant visa as an immediate relative under section 201(b), if, prior to the admission of the child, an adoptive parent or prospective adoptive parent of the child, who has sponsored the child for admission as an immediate relative, has executed an affidavit stating that the parent is aware of the provisions of subparagraph (A)(ii) and will ensure that, within 30 days of the child’s admission, or at the earliest time that is medically appropriate, the child will receive the vaccinations identified in such subparagraph.”.
Approved November 12, 1997.
LEGISLATIVE HISTORY—H.R. 2464: HOUSE REPORTS: No. 105–289 (Comm. on the Judiciary). CONGRESSIONAL RECORD, Vol. 143 (1997):

Oct. 21, considered and passed House.

Nov. 4, considered and passed Senate.

 Public Law 105–74: To require the Secretary of the Interior to exchange certain lands located in Hinsdale County, Colorado. Public Law74 Public Law 105–74 111 Stat. 1460 1997-11-12 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1460 Public Law105–74 105th Congress
An Act To require the Secretary of the Interior to exchange certain lands located in Hinsdale County, Colorado.

Nov. 12, 1997

[S. 587]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. LARSON AND FRIENDS CREEK EXCHANGE. (a) In General.—In exchange for conveyance to the United States of an equal value of offered land acceptable to the Secretary of the Interior that lies within, or in proximity to, the Handies Peak Wilderness Study Area, the Red Cloud Peak Wilderness Study Area, or the Alpine Loop Backcountry Bi-way, in Hinsdale County, Colorado, the Secretary of the Interior shall convey to Lake City Ranches, Ltd., a Texas limited partnership (referred to in this section as “LCR”), approximately 560 acres of selected land located in that county and generally depicted on a map entitled “Larson and Friends Creek Exchange”, dated June 1996. (b) Contingency.—The exchange under subsection (a) shall be contingent on the granting by LCR to the Secretary of a permanent conservation easement, on the approximately 440-acre Larson Creek portion of the selected land (as depicted on the map), that limits future use of the land to agricultural, wildlife, recreational, or open space purposes. (c) Appraisal and Equalization.— (1) In general.—The exchange under subsection (a) shall be subject to— (A) the appraisal requirements and equalization payment limitations set forth in section 206 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1716); and (B) reviews and approvals relating to threatened species and endangered species, cultural and historic resources, and hazardous materials under other Federal laws. (2) Costs of appraisal and review.—The costs of appraisals and reviews shall be paid by LCR.111 STAT. 1461 (3) Crediting.—The Secretary may credit payments under paragraph (2) against the value of the selected land, if appropriate, under section 206(f) of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1716(f)).
Approved November 12, 1997.
LEGISLATIVE HISTORY—S. 587 (H.R. 951): HOUSE REPORTS: No. 105–170 accompanying H.R. 951 (Comm. on Resources). SENATE REPORTS: No. 105–96 (Comm. on Energy and Natural Resources). CONGRESSIONAL RECORD, Vol. 143 (1997):

Oct. 9, considered and passed Senate.

Nov. 4, considered and passed House.

 Public Law 105–75: To provide for the expansion of the Eagles Nest Wilderness within the Arapaho National Forest and the White River National Forest, Colorado, to include land known as the Slate Creek Addition. Public Law75 Public Law 105–75 111 Stat. 1462 1997-11-12 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1462 Public Law105–75 105th Congress
An Act To provide for the expansion of the Eagles Nest Wilderness within the Arapaho National Forest and the White River National Forest, Colorado, to include land known as the Slate Creek Addition.

Nov. 12, 1997

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1.

16 USC 1132 note.

 SLATE CREEK ADDITION TO EAGLES NEST WILDERNESS, ARAPAHO AND WHITE RIVER NATIONAL FORESTS, COLORADO. (a) Slate Creek Addition.—If, before December 31, 2000, the United States acquires the parcel of land described in subsection (b)— (1) on acquisition of the parcel, the parcel shall be included in and managed as part of the Eagles Nest Wilderness designated by Public Law 94–352 (16 U.S.C. 1132 note; 90 Stat. 870); and (2) the boundary of Eagles Nest Wilderness is adjusted to reflect the inclusion of the parcel. (b) Description of Addition.—The parcel referred to in subsection (a) is the parcel generally depicted on a map entitled “Slate Creek Addition-Eagles Nest Wilderness”, dated February 1997, comprising approximately 160 acres in Summit County, Colorado, adjacent to the Eagles Nest Wilderness.
Approved November 12, 1997.
LEGISLATIVE HISTORY—S. 588 (H.R. 985): HOUSE REPORTS: No. 105–111 accompanying H.R. 985 (Comm. on Resources). SENATE REPORTS: No. 105–97 (Comm. on Energy and Natural Resources). CONGRESSIONAL RECORD, Vol. 143 (1997):

Oct. 9, considered and passed Senate.

Nov. 4, considered and passed House.

 Public Law 105–76: To provide for a boundary adjustment and land conveyance involving the Raggeds Wilderness, White River National Forest, Colorado, to correct the effects of earlier erroneous land surveys. Public Law76 Public Law 105–76 111 Stat. 1463 1997-11-12 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1463 Public Law105–76 105th Congress
An Act To provide for a boundary adjustment and land conveyance involving the Raggeds Wilderness, White River National Forest, Colorado, to correct the effects of earlier erroneous land surveys.

Nov. 12, 1997

[S. 589]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. BOUNDARY ADJUSTMENT AND LAND CONVEYANCE, RAGGEDS WILDERNESS, WHITE RIVER NATIONAL FOREST, COLORADO. (a) Findings.—Congress finds that— (1) certain landowners in Gunnison County, Colorado, who own real property adjacent to the portion of the Raggeds Wilderness in the White River National Forest, Colorado, have occupied or improved their property in good faith and in reliance on erroneous surveys of their properties that the landowners reasonably believed were accurate; (2) in 1993, a Forest Service resurvey of the Raggeds Wilderness established accurate boundaries between the wilderness area and adjacent private lands; and (3) the resurvey indicates that a small portion of the Raggeds Wilderness is occupied by adjacent landowners on the basis of the earlier erroneous land surveys. (b) Purpose.—It is the purpose of this section to remove from the boundaries of the Raggeds Wilderness certain real property so as to permit the Secretary of Agriculture to use the authority of Public Law 97–465 (commonly known as the “Small Tracts Act”) (16 U.S.C. 521c et seq.) to convey the property to the landowners who occupied the property on the basis of erroneous land surveys. (c) Boundary Adjustment.—The boundary of the Raggeds Wilderness, Gunnison and White River National Forests, Colorado, as designated by section 102(a)(16) of Public Law 96–560 (94 Stat. 3267; 16 U.S.C. 1132 note), is hereby modified to exclude from the area encompassed by the wilderness a parcel of real property approximately 0.86-acres in size situated in the SW14 of the NE 14 of Section 28, Township 11 South, Range 88 West of the 6th Principal Meridian, as depicted on the map entitled “Encroachment-Raggeds Wilderness”, dated November 17, 1993. (d) Map.—The map described in subsection (c) shall be on file and available for inspection in the appropriate offices of the Forest Service, Department of Agriculture. (e) Conveyance of Land Removed From Wilderness Area.—The Secretary of Agriculture shall use the authority provided by Public Law 97–465 (commonly known as the “Small Tracts Act”) (16 U.S.C. 521c et seq.) to convey all right, title, and interest 111 STAT. 1464of the United States in and to the real property excluded from the boundaries of the Raggeds Wilderness under subsection (c) to the owners of real property in Gunnison County, Colorado, whose real property adjoins the excluded real property and who have occupied the excluded real property in good faith reliance on an erroneous survey.
Approved November 12, 1997.
LEGISLATIVE HISTORY—S. 589 (H.R. 1019): HOUSE REPORTS: No. 105–112 accompanying H.R. 1019 (Comm. on Resources). SENATE REPORTS: No. 105–98 (Comm. on Energy and Natural Resources). CONGRESSIONAL RECORD, Vol. 143 (1997):

Oct. 9, considered and passed Senate.

Nov. 4, considered and passed House.

 Public Law 105–77: To transfer the Dillon Ranger District in the Arapaho National Forest to the White River National Forest in the State of Colorado. Public Law77 Public Law 105–77 111 Stat. 1465 1997-11-12 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1465 Public Law105–77 105th Congress
An Act To transfer the Dillon Ranger District in the Arapaho National Forest to the White River National Forest in the State of Colorado.

Nov. 12, 1997

[S. 591]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. INCLUSION OF DILLON RANGER DISTRICT IN WHITE RIVER NATIONAL FOREST, COLORADO. (a) Boundary Adjustments.— (1) White river national forest.—The boundary of the White River National Forest in the State of Colorado is hereby adjusted to include all National Forest System lands located in Summit County, Colorado, comprising the Dillon Ranger District of the Arapaho National Forest. (2) Arapaho national forest.—The boundary of the Arapaho National Forest is adjusted to exclude the land transferred to the White River National Forest by paragraph (1). (b) Reference.—Any reference to the Dillon Ranger District, Arapaho National Forest, in any existing statute, regulation, manual, handbook, or other document shall be deemed to be a reference to the Dillon Ranger District, White River National Forest. (c) Existing Rights.—Nothing in this section affects valid existing rights of persons holding any authorization, permit, option, or other form of contract existing on the date of the enactment of this Act. (d) Forest Receipts.—Notwithstanding the distribution requirements of payments under the sixth paragraph under the heading “FOREST SERVICE” in the Act entitled “An Act making appropriations for the Department of Agriculture for the fiscal year ending June thirtieth, nineteen hundred and nine”, approved 111 STAT. 1466May 23, 1908 (35 Stat. 260, chapter 192; 16 U.S.C. 500), the distribution of receipts from the Arapaho National Forest and the White River National Forest to affected county governments shall be based on the national forest boundaries that existed on the day before the date of enactment of this Act.
Approved November 12, 1997.
LEGISLATIVE HISTORY—S. 591 (H.R. 1020): HOUSE REPORTS: No. 105–113 accompanying H.R. 1020 (Comm. on Resources). SENATE REPORTS: No. 105–99 (Comm. on Energy and Natural Resources). CONGRESSIONAL RECORD, Vol. 143 (1997):

Oct. 9, considered and passed Senate.

Nov. 4, considered and passed House.

 Public Law 105–78: Making appropriations for the Departments of Labor, Health and Human Services, and Education, and related agencies for the fiscal year ending September 30, 1998, and for other purposes. Public Law78 Public Law 105–78 111 Stat. 1467 1997-11-13 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1467 Public Law105–78 105th Congress
An Act Making appropriations for the Departments of Labor, Health and Human Services, and Education, and related agencies for the fiscal year ending September 30, 1998, and for other purposes.

Nov. 13, 1997

[H.R. 2264]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
That the

Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 1998.

 following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the Departments of Labor, Health and Human Services, and Education, and related agencies for the fiscal year ending September 30, 1998, and for other purposes, namely:
<num value="I">TITLE I—</num><heading>DEPARTMENT OF LABOR</heading><sidenote><p class="indent0 firstIndent0 fontsize8">Department of Labor Appropriations Act, 1998</p></sidenote> <appropriations level="intermediate"> <heading>Employment and Training Administration</heading> <appropriations level="small"> <heading>training and employment services</heading> <content><p class="indent0 fontsize10">For necessary expenses of the Job Training Partnership Act, as amended, including the purchase and hire of passenger motor vehicles, the construction, alteration, and repair of buildings and other facilities, and the purchase of real property for training centers as authorized by the Job Training Partnership Act; the Stewart B. McKinney Homeless Assistance Act; the Women in Apprenticeship and Nontraditional Occupations Act; the National Skill Standards Act of 1994; and the School-to-Work Opportunities Act; $4,988,226,000 plus reimbursements, of which $3,794,735,000 is available for obligation for the period July 1, 1998 through June 30, 1999; of which $118,491,000 is available for the period July 1, 1998 through June 30, 2001 for necessary expenses of construction, rehabilitation, and acquisition of Job Corps centers; and of which $200,000,000 shall be available from July 1, 1998 through September 30, 1999, for carrying out activities of the School-to-Work Opportunities Act: <proviso><i>Provided,</i> That $53,815,000 shall be for carrying out section 401 of the Job Training Partnership Act, $71,017,000 shall be for carrying out section 402 of such Act, $7,300,000 shall be for carrying out section 441 of such Act, $9,000,000 shall be for all activities conducted by and through the National Occupational Information Coordinating Committee under such Act, $955,000,000 shall be for carrying out title II, part A of such Act, and $129,965,000 shall be for carrying out title II, part C of such Act:</proviso> <proviso><i>Provided further,</i> That the National Occupational Information Coordinating Committee is authorized, effective upon enactment, to charge fees for publications, training and technical assistance developed by the National Occupational <page identifier="/us/stat/111/1468">111 STAT. 1468</page>Information Coordinating Committee:</proviso> <proviso><i>Provided further,</i> That revenues received from publications and delivery of technical assistance and training, notwithstanding 31 U.S.C. 3302, shall be credited to the National Occupational Information Coordinating Committee program account and shall be available to the National Occupational Information Coordinating Committee without further appropriations, so long as such revenues are used for authorized activities of the National Occupational Information Coordinating Committee:</proviso> <proviso><i>Provided further,</i> That no funds from any other appropriation shall be used to provide meal services at or for Job Corps centers:</proviso> <proviso><i>Provided further,</i> That funds provided for title III of the Job Training Partnership Act shall not be subject to the limitation contained in subsection (b) of section 315 of such Act; that the waiver described in section 315(a)(2) may be granted if a substate grantee demonstrates to the Governor that such waiver is appropriate due to the availability of low-cost retraining services, is necessary to facilitate the provision of needs-related payments to accompany long-term training, or is necessary to facilitate the provision of appropriate basic readjustment services; and that funds provided for discretionary grants under part B of such title III may be used to provide needs-related payments to participants who, in lieu of meeting the enrollment requirements under section 314(e) of such Act, are enrolled in training by the end of the sixth week after grant funds have been awarded:</proviso> <proviso><i>Provided further,</i> That funds provided to carry out section 324 of such Act may be used for demonstration projects that provide assistance to new entrants in the workforce and incumbent workers:</proviso> <proviso><i>Provided further,</i> That service delivery areas may transfer funding provided herein under authority of title II, parts B and C of the Job Training Partnership Act between the programs authorized by those titles of the Act, if the transfer is approved by the Governor:</proviso> <proviso><i>Provided further,</i> That service delivery areas and substate areas may transfer up to 20 percent of the funding provided herein under authority of title II, part A and title III of the Job Training Partnership Act between the programs authorized by those titles of the Act, if such transfer is approved by the Governor:</proviso> <proviso><i>Provided further,</i> That, notwithstanding any other provision of law, any proceeds from the sale of Job Corps center facilities shall be retained by the Secretary of Labor to carry out the Job Corps program:</proviso> <proviso><i>Provided further,</i> That notwithstanding any other provision of law, the Secretary of Labor may waive any of the statutory or regulatory requirements of titles I–III of the Job Training Partnership Act (except for requirements relating to wage and labor standards, worker rights, participation and protection, grievance procedures and judicial review, nondiscrimination, allocation of funds to local areas, eligibility, review and approval of plans, the establishment and functions of service delivery areas and private industry councils, and the basic purposes of the Act), and any of the statutory or regulatory requirements of sections 8–10 of the Wagner-Peyser Act (except for requirements relating to the provision of services to unemployment insurance claimants and veterans, and to universal access to basic labor exchange services without cost to job seekers), only for funds available for expenditure in program year 1998, pursuant to a request submitted by a State which identifies the statutory or regulatory requirements that are requested to be waived and the goals which the State or local service delivery areas intend to achieve, describes the actions that the State or local service delivery areas have <page identifier="/us/stat/111/1469">111 STAT. 1469</page>undertaken to remove State or local statutory or regulatory barriers, describes the goals of the waiver and the expected programmatic outcomes if the request is granted, describes the individuals impacted by the waiver, and describes the process used to monitor the progress in implementing a waiver, and for which notice and an opportunity to comment on such request has been provided to the organizations identified in section 105(a)(1) of the Job Training Partnership Act, if and only to the extent that the Secretary determines that such requirements impede the ability of the State to implement a plan to improve the workforce development system and the State has executed a Memorandum of Understanding with the Secretary requiring such State to meet agreed upon outcomes and implement other appropriate measures to ensure accountability:</proviso> <proviso><i>Provided further,</i> That the Secretary of Labor shall establish a<sidenote><p class="indent0 firstIndent0 fontsize8">Establishment.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s1732">29 USC 1732 note</ref>.</p></sidenote> workforce flexibility (work-flex) partnership demonstration program under which the Secretary shall authorize not more than six States, of which at least three States shall each have populations not in excess of 3,500,000, with a preference given to those States that have been designated Ed-Flex Partnership States under section 311(e) of Public Law 103–227, to waive any statutory or regulatory requirement applicable to service delivery areas or substate areas within the State under titles I–III of the Job Training Partnership Act (except for requirements relating to wage and labor standards, grievance procedures and judicial review, nondiscrimination, allotment of funds, and eligibility), and any of the statutory or regulatory requirements of sections 8–10 of the Wagner-Peyser Act (except for requirements relating to the provision of services to unemployment insurance claimants and veterans, and to universal access to basic labor exchange services without cost to job seekers), for a duration not to exceed the waiver period authorized under section 311(e) of Public Law 103–227, pursuant to a plan submitted by such States and approved by the Secretary for the provision of workforce employment and training activities in the States, which includes a description of the process by which service delivery areas and substate areas may apply for and have waivers approved by the State, the requirements of the Wagner-Peyser Act to be waived, the outcomes to be achieved and other measures to be taken to ensure appropriate accountability for Federal funds.</proviso></p> <p class="indent0 fontsize10">For necessary expenses of Opportunity Areas of Out-of-School Youth, in addition to amounts otherwise provided herein, $250,000,000, to be available for obligation for the period October 1, 1998 through September 30, 1999, if job training reform legislation authorizing this or similar at-risk youth projects is enacted by July 1, 1998.</p> </content></appropriations> <appropriations level="small"> <heading>community service employment for older americans</heading> <subheading>(transfer of funds)</subheading> <content><p class="indent0 fontsize10">To carry out the activities for national grants or contracts with public agencies and public or private nonprofit organizations under paragraph (1)(A) of section 506(a) of title V of the Older Americans Act of 1965, as amended, or to carry out older worker activities as subsequently authorized, $343,356,000.</p> <p class="indent0 fontsize10">To carry out the activities for grants to States under paragraph (3) of section 506(a) of title V of the Older Americans Act of 1965, as amended, or to carry out older worker activities as subsequently authorized, $96,844,000.<page identifier="/us/stat/111/1470">111 STAT. 1470</page></p> <p class="indent0 fontsize10">The funds appropriated under this heading shall be transferred to and merged with the Department of Health and Human Services, “Aging Services Programs”, for the same purposes and the same period as the account to which transferred, following the enactment of legislation authorizing the administration of the program by that Department.</p> </content></appropriations> <appropriations level="small"> <heading>federal unemployment benefits and allowances</heading> <content>For payments during the current fiscal year of trade adjustment benefit payments and allowances under part I; and for training, allowances for job search and relocation, and related State administrative expenses under part II, subchapters B and D, chapter 2, title II of the Trade Act of 1974, as amended, $349,000,000, together with such amounts as may be necessary to be charged to the subsequent appropriation for payments for any period subsequent to September 15 of the current year.</content> </appropriations> <appropriations level="small"> <heading>state unemployment insurance and employment service operations</heading> <content>For authorized administrative expenses, $173,452,000, together with not to exceed $3,322,476,000 (including not to exceed $1,228,000 which may be used for amortization payments to States which had independent retirement plans in their State employment service agencies prior to 1980, and including not to exceed $2,000,000 which may be obligated in contracts with non-State entities for activities such as occupational and test research activities which benefit the Federal-State Employment Service System), which may be expended from the Employment Security Administration account in the Unemployment Trust Fund including the cost of administering section 1201 of the Small Business Job Protection Act of 1996, section 7(d) of the Wagner-Peyser Act, as amended, the Trade Act of 1974, as amended, the Immigration Act of 1990, and the Immigration and Nationality Act, as amended, and of which the sums available in the allocation for activities authorized by title III of the Social Security Act, as amended (42 U.S.C. 502–504), and the sums available in the allocation for necessary administrative expenses for carrying out 5 U.S.C. 8501–8523, shall be available for obligation by the States through December 31, 1998, except that funds used for automation acquisitions shall be available for obligation by States through September 30, 2000; and of which $40,000,000 of the amount which may be expended from said trust fund, shall be available for obligation for the period October 1, 1998 through September 30, 1999, for the purpose of assisting States to convert their automated State employment security agency systems to be year 2000 compliant; and of which $173,452,000, together with not to exceed $738,283,000 of the amount which may be expended from said trust fund, shall be available for obligation for the period July 1, 1998 through June 30, 1999, to fund activities under the Act of June 6, 1933, as amended, including the cost of penalty mail authorized under 39 U.S.C. 3202(a)(1)(E) made available to States in lieu of allotments for such purpose, and of which $200,000,000 shall be available solely for the purpose of assisting States to convert their automated State employment security agency systems to be year 2000 compliant, and of which $196,333,000 shall be available only to the extent <page identifier="/us/stat/111/1471">111 STAT. 1471</page>necessary for additional State allocations to administer unemployment compensation laws to finance increases in the number of unemployment insurance claims filed and claims paid or changes in a State law: <proviso><i>Provided,</i> That to the extent that the Average Weekly Insured Unemployment (AWIU) for fiscal year 1998 is projected by the Department of Labor to exceed 2,789,000 an additional $28,600,000 shall be available for obligation for every 100,000 increase in the AWIU level (including a pro rata amount for any increment less than 100,000) from the Employment Security Administration Account of the Unemployment Trust Fund:</proviso> <proviso><i>Provided further,</i> That funds appropriated in this Act which are used to establish a national one-stop career center network may be obligated in contracts, grants or agreements with non-State entities:</proviso> <proviso><i>Provided further,</i> That funds appropriated under this Act for activities authorized under the Wagner-Peyser Act, as amended, and title III of the Social Security Act, may be used by the States to fund integrated Employment Service and Unemployment Insurance automation efforts, notwithstanding cost allocation principles prescribed under Office of Management and Budget Circular A–87.</proviso></content> </appropriations> <appropriations level="small"> <heading>advances to the unemployment trust fund and other funds</heading> <content><p class="indent0 fontsize10">For repayable advances to the Unemployment Trust Fund as authorized by sections 905(d) and 1203 of the Social Security Act, as amended, and to the Black Lung Disability Trust Fund as authorized by section 9501(c)(1) of the Internal Revenue Code of 1954, as amended; and for nonrepayable advances to the Unemployment Trust Fund as authorized by section 8509 of title 5, United States Code, section 104(d) of Public Law 102–164, and section 5 of Public Law 103–6, and to the “Federal unemployment benefits and allowances” account, to remain available until September 30, 1999, $392,000,000.</p> <p class="indent0 fontsize10">In addition, for making repayable advances to the Black Lung Disability Trust Fund in the current fiscal year after September 15, 1998, for costs incurred by the Black Lung Disability Trust Fund in the current fiscal year, such sums as may be necessary.</p> </content></appropriations> <appropriations level="small"> <heading>program administration</heading> <content>For expenses of administering employment and training programs, $90,308,000, including $6,000,000 to support up to 75 fulltime equivalent staff, the majority of which will be term Federal appointments lasting no more than three years, to administer wel-fare-to-work grants, together with not to exceed $41,285,000, which may be expended from the Employment Security Administration account in the Unemployment Trust Fund.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Pension and Welfare Benefits Administration</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses for the Pension and Welfare Benefits Administration, $82,000,000, of which $3,000,000 shall remain available through September 30, 1999 for expenses of completing the revision of the processing of employee benefit plan returns.<page identifier="/us/stat/111/1472">111 STAT. 1472</page></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Pension Benefit Guaranty Corporation</heading> <appropriations level="small"> <heading>pension benefit guaranty corporation fund</heading> <content>The Pension Benefit Guaranty Corporation is authorized to make such expenditures, including financial assistance authorized by section 104 of Public Law 96–364, within limits of funds and borrowing authority available to such Corporation, and in accord with law, and to make such contracts and commitments without regard to fiscal year limitations as provided by section 104 of the Government Corporation Control Act, as amended (31 U.S.C. 9104), as may be necessary in carrying out the program through September 30, 1998, for such Corporation: <proviso><i>Provided,</i> That not to exceed $10,433,000 shall be available for administrative expenses of the Corporation:</proviso> <proviso><i>Provided further,</i> That expenses of such Corporation in connection with the termination of pension plans, for the acquisition, protection or management, and investment of trust assets, and for benefits administration services shall be considered as non-administrative expenses for the purposes hereof, and excluded from the above limitation.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Employment Standards Administration</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses for the Employment Standards Administration, including reimbursement to State, Federal, and local agencies and their employees for inspection services rendered, $299,660,000, together with $993,000 which may be expended from the Special Fund in accordance with sections 39(c) and 44(j) of the Longshore and Harbor Workers’ Compensation Act: <proviso><i>Provided,</i> That $500,000 shall be for the development of an alternative system for the electronic submission of reports as required to be filed under the Labor-Management Reporting and Disclosure Act of 1959, as amended, and for a computer database of the information for each submission by whatever means, that is indexed and easily searchable by the public via the Internet:</proviso> <proviso><i>Provided further,</i> That the Secretary of Labor is authorized to accept, retain, and spend, until expended, in the name of the Department of Labor, all sums of money ordered to be paid to the Secretary of Labor, in accordance with the terms of the Consent Judgment in Civil Action No. 910027 of the United States District Court for the District of the Northern Mariana Islands (May 21, 1992):</proviso> <proviso><i>Provided further,</i> That the Secretary of Labor is authorized to establish and, in accordance with 31 U.S.C. 3302, collect and deposit in the Treasury fees for processing applications and issuing certificates under sections 11(d) and 14 of the Fair Labor Standards Act of 1938, as amended (29 U.S.C. 211(d) and 214) and for processing applications and issuing registrations under title I of the Migrant and Seasonal Agricultural Worker Protection Act (29 U.S.C. 1801 et seq.).</proviso></content> </appropriations> <appropriations level="small"> <heading>special benefits</heading> <subheading>(including transfer of funds)</subheading> <content>For the payment of compensation, benefits, and expenses (except administrative expenses) accruing during the current or any prior fiscal year authorized by title 5, chapter 81 of the United States Code; continuation of benefits as provided for under the <page identifier="/us/stat/111/1473">111 STAT. 1473</page>head “Civilian War Benefits” in the Federal Security Agency Appropriation Act, 1947; the Employees’ Compensation Commission Appropriation Act, 1944; and sections 4(c) and 5(f) of the War Claims Act of 1948 (50 U.S.C. App. 2012); and 50 percent of the additional compensation and benefits required by section 10(h) of the Longshore and Harbor Workers’ Compensation Act, as amended, $201,000,000 together with such amounts as may be necessary to be charged to the subsequent year appropriation for the payment of compensation and other benefits for any period subsequent to August 15 of the current year: <proviso><i>Provided,</i> That amounts appropriated may be used under section 8104 of title 5, United States Code, by the Secretary to reimburse an employer, who is not the employer at the time of injury, for portions of the salary of a reemployed, disabled beneficiary:</proviso> <proviso><i>Provided further,</i> That balances of reimbursements unobligated on September 30, 1997, shall remain available until expended for the payment of compensation, benefits, and expenses:</proviso> <proviso><i>Provided further,</i> That in addition there shall be transferred to this appropriation from the Postal Service and from any other corporation or instrumentality required under section 8147(c) of title 5, United States Code, to pay an amount for its fair share of the cost of administration, such sums as the Secretary of Labor determines to be the cost of administration for employees of such fair share entities through September 30, 1998:</proviso> <proviso><i>Provided further,</i> That of those funds transferred to this account from the fair share entities to pay the cost of administration, $7,269,000 shall be made available to the Secretary of Labor for expenditures relating to capital improvements in support of Federal Employees’ Compensation Act administration, and the balance of such funds shall be paid into the Treasury as miscellaneous receipts:</proviso> <proviso><i>Provided further,</i> That the Secretary may require that any person filing a notice of injury or a claim for benefits under chapter 81 of title 5, United States Code, or 33 U.S.C. 901 et seq., provide as part of such notice and claim, such identifying information (including Social Security account number) as such regulations may prescribe.</proviso></content> </appropriations> <appropriations level="small"> <heading>black lung disability trust fund</heading> <subheading>(including transfer of funds)</subheading> <content>For payments from the Black Lung Disability Trust Fund, $1,007,000,000, of which $960,650,000 shall be available until September 30, 1999, for payment of all benefits as authorized by section 9501(d)(1), (2), (4), and (7) of the Internal Revenue Code of 1954, as amended, and interest on advances as authorized by section 9501(c)(2) of that Act, and of which $26,147,000 shall be available for transfer to Employment Standards Administration, Salaries and Expenses, $19,551,000 for transfer to Departmental Management, Salaries and Expenses, $296,000 for transfer to Departmental Management, Office of Inspector General, and $356,000 for payment into miscellaneous receipts for the expenses of the Department of Treasury, for expenses of operation and administration of the Black Lung Benefits program as authorized by section 9501(d)(5) of that Act: <proviso><i>Provided,</i> That, in addition, such amounts as may be necessary may be charged to the subsequent year appropriation for the payment of compensation, interest, or other benefits for any period subsequent to August 15 of the current year.</proviso><page identifier="/us/stat/111/1474">111 STAT. 1474</page></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Occupational Safety and Health Administration</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <chapeau>For necessary expenses for the Occupational Safety and Health Administration, $336,480,000, including not to exceed $77,941,000 which shall be the maximum amount available for grants to States under section 23(g) of the Occupational Safety and Health Act, which grants shall be no less than 50 percent of the costs of State occupational safety and health programs required to be incurred under plans approved by the Secretary under section 18 of the Occupational Safety and Health Act of 1970; and, in addition, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s670">29 USC 670 note</ref>.</p></sidenote>notwithstanding 31 U.S.C. 3302, the Occupational Safety and Health Administration may retain up to $750,000 per fiscal year of training institute course tuition fees, otherwise authorized by law to be collected, and may utilize such sums for occupational safety and health training and education grants: <proviso><i>Provided,</i> That, notwithstanding 31 U.S.C. 3302, the Secretary of Labor is authorized, during the fiscal year ending September 30, 1998, to collect and retain fees for services provided to Nationally Recognized Testing Laboratories, and may utilize such sums, in accordance with the provisions of 29 U.S.C. 9a, to administer national and international laboratory recognition programs that ensure the safety of equipment and products used by workers in the workplace:</proviso> <proviso><i>Provided further,</i> That none of the funds appropriated under this paragraph shall be obligated or expended to prescribe, issue, administer, or enforce any standard, rule, regulation, or order under the Occupational Safety and Health Act of 1970 which is applicable to any person who is engaged in a farming operation which does not maintain a temporary labor camp and employs ten or fewer employees:</proviso> <proviso><i>Provided further,</i> That no funds appropriated under this paragraph shall be obligated or expended to administer or enforce any standard, rule, regulation, or order under the Occupational Safety and Health Act of 1970 with respect to any employer of ten or fewer employees who is included within a category having an occupational injury lost workday case rate, at the most precise Standard Industrial Classification Code for which such data are published, less than the national average rate as such rates are most recently published by the Secretary, acting through the Bureau of Labor Statistics, in accordance with section 24 of that Act (29 U.S.C. 673), except—</proviso></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>to provide, as authorized by such Act, consultation, technical assistance, educational and training services, and to conduct surveys and studies;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>to conduct an inspection or investigation in response to an employee complaint, to issue a citation for violations found during such inspection, and to assess a penalty for violations which are not corrected within a reasonable abatement period and for any willful violations found;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>to take any action authorized by such Act with respect to imminent dangers;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>to take any action authorized by such Act with respect to health hazards;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>to take any action authorized by such Act with respect to a report of an employment accident which is fatal to one or more employees or which results in hospitalization of two or more employees, and to take any action pursuant to such investigation authorized by such Act; and<page identifier="/us/stat/111/1475">111 STAT. 1475</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>to take any action authorized by such Act with respect to complaints of discrimination against employees for exercising rights under such Act: <proviso><i>Provided further,</i> That the foregoing proviso shall not apply to any person who is engaged in a farming operation which does not maintain a temporary labor camp and employs ten or fewer employees.</proviso></content></paragraph> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Mine Safety and Health Administration</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses for the Mine Safety and Health Administration, $203,334,000, including purchase and bestowal of certificates and trophies in connection with mine rescue and first-aid work, and the hire of passenger motor vehicles; the Secretary<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t30/s962">30 USC 962</ref>.</p></sidenote> is authorized to accept lands, buildings, equipment, and other contributions from public and private sources and to prosecute projects in cooperation with other agencies, Federal, State, or private; the Mine Safety and Health Administration is authorized to promote health and safety education and training in the mining community through cooperative programs with States, industry, and safety associations; and any funds available to the Department may be used, with the approval of the Secretary, to provide for the costs of mine rescue and survival operations in the event of a major disaster: <proviso><i>Provided,</i> That none of the funds appropriated under this paragraph shall be obligated or expended to carry out section 115 of the Federal Mine Safety and Health Act of 1977 or to carry out that portion of section 104(g)(1) of such Act relating to the enforcement of any training requirements, with respect to shell dredging, or with respect to any sand, gravel, surface stone, surface clay, colloidal phosphate, or surface limestone mine.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Bureau of Labor Statistics</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses for the Bureau of Labor Statistics, including advances or reimbursements to State, Federal, and local agencies and their employees for services rendered, $327,609,000, of which $15,430,000 shall be for expenses of revising the Consumer Price Index and shall remain available until September 30, 1999, together with not to exceed $52,848,000, which may be expended from the Employment Security Administration account in the Unemployment Trust Fund.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Departmental Management</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses for Departmental Management, including the hire of three sedans, and including up to $4,421,000 for the President’s Committee on Employment of People With Disabilities, $152,253,000; together with not to exceed $282,000, which may be expended from the Employment Security Administration account in the Unemployment Trust Fund: <proviso><i>Provided,</i> That no funds<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t33/s921">33 USC 921 note</ref>.</p></sidenote> made available by this Act may be used by the Solicitor of Labor to participate in a review in any United States court of appeals of any decision made by the Benefits Review Board under section 21 of the Longshore and Harbor Workers’ Compensation Act (33 <page identifier="/us/stat/111/1476">111 STAT. 1476</page>U.S.C. 921) where such participation is precluded by the decision of the United States Supreme Court in Director, Office of Workers’ Compensation Programs v. Newport News Shipbuilding, 115 S. Ct. 1278 (1995):</proviso> <proviso><i>Provided further,</i> That no funds made available by this Act may be used by the Secretary of Labor to review a decision under the Longshore and Harbor Workers’ Compensation Act (33 U.S.C. 901 et seq.) that has been appealed and that has been pending before the Benefits Review Board for more than 12 months:</proviso> <proviso><i>Provided further,</i> That any such decision pending a review by the Benefits Review Board for more than one year shall be considered affirmed by the Benefits Review Board on that date, and shall be considered the final order of the Board for purposes of obtaining a review in the United States courts of appeals:</proviso> <proviso><i>Provided further,</i> That these provisions shall not be applicable to the review of any decision issued under the Black Lung Benefits Act (30 U.S.C. 901 et seq.).</proviso></content> </appropriations> <appropriations level="small"> <heading>working capital fund</heading> <content>The paragraph under this heading in Public Law 85–67 (29 U.S.C. 563) is amended by striking the last period and inserting after “<quotedText>appropriation action</quotedText>” the following: “: <proviso><i>Provided further,</i> That the Secretary of Labor may transfer annually an amount not to exceed $3,000,000 from unobligated balances in the Department’s salaries and expenses accounts, to the unobligated balance of the Working Capital Fund, to be merged with such Fund and used for the acquisition of capital equipment and the improvement of financial management, information technology and other support systems, and to remain available until expended:</proviso> <proviso><i>Provided further,</i> That the unobligated balance of the Fund shall not exceed $20,000,000.</proviso>”.</content> </appropriations> <appropriations level="small"> <heading>assistant secretary for veterans employment and training</heading> <content>Not to exceed $181,955,000 may be derived from the Employment Security Administration account in the Unemployment Trust Fund to carry out the provisions of 38 U.S.C. 4100–4110A and 4321–4327, and Public Law 103–353, and which shall be available for obligation by the States through December 31, 1998.</content> </appropriations> <appropriations level="small"> <heading>office of inspector general</heading> <content>For salaries and expenses of the Office of Inspector General in carrying out the provisions of the Inspector General Act of 1978, as amended, $42,605,000, together with not to exceed $3,645,000, which may be expended from the Employment Security Administration account in the Unemployment Trust Fund.</content> </appropriations> </appropriations> <level> <heading class="centered">GENERAL PROVISIONS</heading> <section> <num value="101"><inline class="smallCaps">Sec</inline>. 101.</num> <content class="inline">None of the funds appropriated in this title for the Job Corps shall be used to pay the compensation of an individual, either as direct costs or any proration as an indirect cost, at a rate in excess of $125,000.</content> </section> <level> <heading class="centered">(<inline class="smallCaps">transfer of funds</inline>)</heading> <section> <num value="102"><inline class="smallCaps">Sec</inline>. 102.</num> <content class="inline">Not to exceed 1 percent of any discretionary funds (pursuant to the Balanced Budget and Emergency Deficit Control <page identifier="/us/stat/111/1477">111 STAT. 1477</page>Act, as amended) which are appropriated for the current fiscal year for the Department of Labor in this Act may be transferred between appropriations, but no such appropriation shall be increased by more than 3 percent by any such transfer: <proviso><i>Provided,</i> That the Appropriations Committees of both Houses of Congress are notified at least fifteen days in advance of any transfer.</proviso></content> </section> <section> <num value="103"><inline class="smallCaps">Sec</inline>. 103.</num> <content class="inline">Funds shall be available for carrying out title IV–B of the Job Training Partnership Act, notwithstanding section 427(c) of that Act, if a Job Corps center fails to meet national performance standards established by the Secretary.</content> </section> <section> <num value="104"><inline class="smallCaps">Sec</inline>. 104.</num> <content class="inline">None of the funds made available in this Act may be used by the Occupational Safety and Health Administration to promulgate or issue any proposed or final standard regarding ergonomic protection before September 30, 1998: <proviso><i>Provided,</i> That nothing in this section shall be construed to limit the Occupational Safety and Health Administration from issuing voluntary guidelines on ergonomic protection or from developing a proposed standard regarding ergonomic protection:</proviso> <proviso><i>Provided further,</i> That no funds made available in this Act may be used by the Occupational Safety and Health Administration to enforce voluntary ergonomics guidelines through section 5 (the general duty clause) of the Occupational Safety and Health Act of 1970 (29 U.S.C. 654).</proviso></content> </section> <section> <num value="105"><inline class="smallCaps">Sec</inline>. 105.</num> <content class="inline"><p class="indent0 fontsize10">Section 13(b)(12) of the Fair Labor Standards Act of 1938 (29 U.S.C. 213(b)(12)) is amended by striking “<quotedText>water for agricultural purposes</quotedText>” and inserting in lieu thereof “water, at least 90 percent of which was ultimately delivered for agricultural purposes during the preceding calendar year”.</p> <p class="indent0 fontsize10">This title may be cited as the “Department of Labor Appropriations Act, 1998”.</p> </content></section> </level> </level> <num value="II">TITLE II—</num><heading>DEPARTMENT OF HEALTH AND HUMAN SERVICES</heading><sidenote><p class="indent0 firstIndent0 fontsize8">Department of Health and Human Services Appropriations Act, 1998.</p></sidenote> <appropriations level="intermediate"> <heading>Health Resources and Services Administration</heading> <appropriations level="small"> <heading>health resources and services</heading> <content>For carrying out titles II, III, VII, VIII, X, XII, XIX, and XXVI of the Public Health Service Act, section 427(a) of the Federal Coal Mine Health and Safety Act, title V of the Social Security Act, the Health Care Quality Improvement Act of 1986, as amended, and the Native Hawaiian Health Care Act of 1988, as amended, $3,618,137,000, of which $225,000 shall remain available until expended for interest subsidies on loan guarantees made prior to fiscal year 1981 under part B of title VII of the Public Health Service Act and of which $28,000,000 shall be available for the construction and renovation of health care and other facilities: <proviso><i>Provided,</i> That the Division of Federal Occupational Health may utilize personal services contracting to employ professional management/administrative and occupational health professionals:</proviso> <proviso><i>Provided further,</i> That of the funds made available under this heading, $2,500,000 shall be available until expended for facilities renovations at the Gillis W. Long Hansen’s Disease Center:</proviso> <proviso><i>Provided further,</i><sidenote><p class="indent0 firstIndent0 fontsize8">Fees.</p></sidenote> That in addition to fees authorized by section 427(b) of the Health Care Quality Improvement Act of 1986, fees shall be collected for the full disclosure of information under the Act sufficient to recover the full costs of operating the National Practitioner Data Bank, and shall remain available until expended to carry <page identifier="/us/stat/111/1478">111 STAT. 1478</page>out that Act:</proviso> <proviso><i>Provided further,</i> That no more than $5,000,000 is available for carrying out the provisions of Public Law 104–73:</proviso> <proviso><i>Provided further,</i> That of the funds made available under this heading, $203,452,000 shall be for the program under title X of the Public Health Service Act to provide for voluntary family planning projects:</proviso> <proviso><i>Provided further,</i> That amounts provided to said projects under such title shall not be expended for abortions, that all pregnancy counseling shall be nondirective, and that such amounts shall not be expended for any activity (including the publication or distribution of literature) that in any way tends to promote public support or opposition to any legislative proposal or candidate for public office:</proviso> <proviso><i>Provided further,</i> That $285,500,000 shall be for State AIDS Drug Assistance Programs authorized by section 2616 of the Public Health Service Act:</proviso> <proviso><i>Provided further,</i> That notwithstanding any other provision of law, funds made available under this heading may be used to continue operating the Council on Graduate Medical Education established by section 301 of Public Law 102–408:</proviso> <proviso><i>Provided further,</i> That, of the funds made available under this heading, not more than $6,000,000 shall be made available and shall remain available until expended for loan guarantees for loans funded under part A of title XVI of the Public Health Service Act as amended, made by non-Federal lenders for the construction, renovation, and modernization of medical facilities that are owned and operated by health centers, and for loans made to health centers under section 330(d) of the Public Health Service Act as amended by Public Law 104–299, and that such funds be available to subsidize guarantees of total loan principal in an amount not to exceed $80,000,000:</proviso> <proviso><i>Provided further,</i> That notwithstanding section 502(a)(1) of the Social Security Act, not to exceed $103,863,000 is available for carrying out special projects of regional and national significance pursuant to section 501(a)(2) of such Act.</proviso></content> </appropriations> <appropriations level="small"> <heading>medical facilities guarantee and loan fund</heading> <subheading>federal interest subsidies for medical facilities</subheading> <content>For carrying out subsections (d) and (e) of section 1602 of the Public Health Service Act, $6,000,000, together with any amounts received by the Secretary in connection with loans and loan guarantees under title VI of the Public Health Service Act, to be available without fiscal year limitation for the payment of interest subsidies. During the fiscal year, no commitments for direct loans or loan guarantees shall be made.</content> </appropriations> <appropriations level="small"> <heading>health education assistance loans program (including transfer of funds)</heading> <content>For the cost of guaranteed loans, such sums as may be necessary to carry out the purpose of the program, as authorized by title VII of the Public Health Service Act, as amended: <proviso><i>Provided,</i> That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974:</proviso> <proviso><i>Provided further,</i> That these funds are available to subsidize gross obligations for the total loan principal any part of which is to be guaranteed at not to exceed $85,000,000:</proviso> <proviso><i>Provided further,</i> That the Secretary may use up to $1,000,000 derived by transfer from insurance premiums collected from guaranteed loans made <page identifier="/us/stat/111/1479">111 STAT. 1479</page>under title VII of the Public Health Service Act for the purpose of carrying out section 709 of that Act. In addition, for administrative expenses to carry out the guaranteed loan program, $2,688,000.</proviso></content> </appropriations> <appropriations level="small"> <heading>vaccine injury compensation program trust fund</heading> <content>For payments from the Vaccine Injury Compensation Program Trust Fund, such sums as may be necessary for claims associated with vaccine-related injury or death with respect to vaccines administered after September 30, 1988, pursuant to subtitle 2 of title XXI of the Public Health Service Act, to remain available until expended: <proviso><i>Provided,</i> That for necessary administrative expenses, not to exceed $3,000,000 shall be available from the Trust Fund to the Secretary of Health and Human Services.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Centers for Disease Control and Prevention</heading> <appropriations level="small"> <heading>disease control, research, and training</heading> <content><p class="indent0 fontsize10">To carry out titles II, III, VII, XI, XV, XVII, and XIX of the Public Health Service Act, sections 101, 102, 103, 201, 202, 203, 301, and 501 of the Federal Mine Safety and Health Act of 1977, and sections 20, 21 and 22 of the Occupational Safety and Health Act of 1970, title IV of the Immigration and Nationality Act and section 501 of the Refugee Education Assistance Act of 1980; including insurance of official motor vehicles in foreign countries; and hire, maintenance, and operation of aircraft, $2,327,552,000, of which $21,504,000 shall remain available until expended for equipment and construction and renovation of facilities, and in addition, such sums as may be derived from authorized user fees, which shall be credited to this account: <proviso><i>Provided,</i> That in addition to amounts provided herein, up to $59,232,000 shall be available from amounts available under section 241 of the Public Health Service Act, to carry out the National Center for Health Statistics surveys:</proviso> <proviso><i>Provided further,</i> That none of the funds made available for injury prevention and control at the Centers for Disease Control and Prevention may be used to advocate or promote gun control:</proviso> <proviso><i>Provided further,</i> That the Director may redirect the total amount made available under authority of Public Law 101–502, section 3, dated November 3, 1990, to activities the Director may so designate:</proviso> <proviso><i>Provided further,</i> That the Congress is to be notified<sidenote><p class="indent0 firstIndent0 fontsize8">Notification.</p></sidenote> promptly of any such transfer.</proviso></p> <p class="indent0 fontsize10">In addition, $51,000,000, to be derived from the Violent Crime Reduction Trust Fund, for carrying out sections 40151 and 40261 of Public Law 103–322.</p> </content></appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Institutes of Health</heading> <appropriations level="small"> <heading>national cancer institute</heading> <content>For carrying out section 301 and title IV of the Public Health Service Act with respect to cancer, $2,547,314,000.</content> </appropriations> <appropriations level="small"> <heading>national heart, lung, and blood institute</heading> <content>For carrying out section 301 and title IV of the Public Health Service Act with respect to cardiovascular, lung, and blood diseases, and blood and blood products, $1,531,061,000.<page identifier="/us/stat/111/1480">111 STAT. 1480</page></content> </appropriations> <appropriations level="small"> <heading>national institute of dental research</heading> <content>For carrying out section 301 and title IV of the Public Health Service Act with respect to dental disease, $209,415,000.</content> </appropriations> <appropriations level="small"> <heading>national institute of diabetes and digestive and kidney diseases</heading> <content>For carrying out section 301 and title IV of the Public Health Service Act with respect to diabetes and digestive and kidney disease, $873,860,000.</content> </appropriations> <appropriations level="small"> <heading>national institute of neurological disorders and stroke</heading> <content>For carrying out section 301 and title IV of the Public Health Service Act with respect to neurological disorders and stroke, $780,713,000.</content> </appropriations> <appropriations level="small"> <heading>national institute of allergy and infectious diseases</heading> <content>For carrying out section 301 and title IV of the Public Health Service Act with respect to allergy and infectious diseases, $1,351,655,000.</content> </appropriations> <appropriations level="small"> <heading>national institute of general medical sciences</heading> <content>For carrying out section 301 and title IV of the Public Health Service Act with respect to general medical sciences, $1,065,947,000.</content> </appropriations> <appropriations level="small"> <heading>national institute of child health and human development</heading> <content>For carrying out section 301 and title IV of the Public Health Service Act with respect to child health and human development, $674,766,000.</content> </appropriations> <appropriations level="small"> <heading>national eye institute</heading> <content>For carrying out section 301 and title IV of the Public Health Service Act with respect to eye diseases and visual disorders, $355,691,000.</content> </appropriations> <appropriations level="small"> <heading>national institute of environmental health sciences</heading> <content>For carrying out sections 301 and 311 and title TV of the Public Health Service Act with respect to environmental health sciences, $330,108,000.</content> </appropriations> <appropriations level="small"> <heading>national institute on aging</heading> <content>For carrying out section 301 and title TV of the Public Health Service Act with respect to aging, $519,279,000.</content> </appropriations> <appropriations level="small"> <heading>national institute of arthritis and musculoskeletal and skin diseases</heading> <content>For carrying out section 301 and title TV of the Public Health Service Act with respect to arthritis and musculoskeletal and skin diseases, $274,760,000.<page identifier="/us/stat/111/1481">111 STAT. 1481</page></content> </appropriations> <appropriations level="small"> <heading>national institute on deafness and other communication disorders</heading> <content>For carrying out section 301 and title IV of the Public Health Service Act with respect to deafness and other communication disorders, $200,695,000.</content> </appropriations> <appropriations level="small"> <heading>national institute of nursing research</heading> <content>For carrying out section 301 and title IV of the Public Health Service Act with respect to nursing research, $63,597,000.</content> </appropriations> <appropriations level="small"> <heading>national institute on alcohol abuse and alcoholism</heading> <content>For carrying out section 301 and title IV of the Public Health Service Act with respect to alcohol abuse and alcoholism, $227,175,000.</content> </appropriations> <appropriations level="small"> <heading>national institute on drug abuse</heading> <content>For carrying out section 301 and title IV of the Public Health Service Act with respect to drug abuse, $527,175,000.</content> </appropriations> <appropriations level="small"> <heading>national institute of mental health</heading> <content>For carrying out section 301 and title IV of the Public Health Service Act with respect to mental health, $750,241,000.</content> </appropriations> <appropriations level="small"> <heading>national human genome research institute</heading> <content>For carrying out section 301 and title IV of the Public Health Service Act with respect to human genome research, $217,704,000.</content> </appropriations> <appropriations level="small"> <heading>national center for research resources</heading> <content>For carrying out section 301 and title IV of the Public Health Service Act with respect to research resources and general research support grants, $453,883,000: <proviso><i>Provided,</i> That none of these funds shall be used to pay recipients of the general research support grants program any amount for indirect expenses in connection with such grants:</proviso> <proviso><i>Provided further,</i> That $20,000,000 shall be for extramural facilities construction grants.</proviso></content> </appropriations> <appropriations level="small"> <heading>john e. fogarty international center</heading> <content>For carrying out the activities at the John E. Fogarty International Center, $28,289,000.</content> </appropriations> <appropriations level="small"> <heading>national library of medicine</heading> <content>For carrying out section 301 and title IV of the Public Health Service Act with respect to health information communications, $161,185,000, of which $4,000,000 shall be available until expended for improvement of information systems: <proviso><i>Provided,</i> That in fiscal year 1998, the Library may enter into personal services contracts for the provision of services in facilities owned, operated, or constructed under the jurisdiction of the National Institutes of Health.</proviso><page identifier="/us/stat/111/1482">111 STAT. 1482</page></content> </appropriations> <appropriations level="small"> <heading>office of the director</heading> <subheading>(including transfer of funds)</subheading> <content>For carrying out the responsibilities of the Office of the Director, National Institutes of Health, $296,373,000, of which $40,536,000 shall be for the Office of AIDS Research: <proviso><i>Provided,</i> That funding shall be available for the purchase of not to exceed five passenger motor vehicles for replacement only:</proviso> <proviso><i>Provided further,</i> That the Director may direct up to 1 percent of the total amount made available in this or any other Act to all National Institutes of Health appropriations to activities the Director may so designate:</proviso> <sidenote><p class="indent0 firstIndent0 fontsize8">Notification.</p></sidenote><proviso><i>Provided further,</i> That no such appropriation shall be decreased by more than 1 percent by any such transfers and that the Congress is promptly notified of the transfer:</proviso> <proviso><i>Provided further,</i> That NIH is authorized to collect third party payments for the cost of clinical services that are incurred in National Institutes of Health research facilities and that such payments shall be credited to the National Institutes of Health Management Fund:</proviso> <proviso><i>Provided further,</i> That all funds credited to the NIH Management Fund shall remain available for one fiscal year after the fiscal year in which they are deposited:</proviso> <proviso><i>Provided further,</i> That up to $500,000 shall be available to carry out section 499 of the Public Health Service Act:</proviso> <proviso><i>Provided further,</i> That, notwithstanding section 499(k)(10) of the Public Health Service Act, funds from the National Foundation for Biomedical Research may be transferred to the National Institutes of Health:</proviso> <proviso><i>Provided further,</i> That $20,000,000 shall be available to carry out section 404E of the Public Health Service Act:</proviso> <proviso><i>Provided further,</i> That of the funds available to carry out section 404E of the Public Health Service Act, not less than $7,000,000 shall be for peer reviewed complementary and alternative medicine research grants and contracts that respond to program announcements and requests for proposals issued by the Office of Alternative Medicine.</proviso></content> </appropriations> <appropriations level="small"> <heading>buildings and facilities</heading> <content>For the study of, construction of, and acquisition of equipment for, facilities of or used by the National Institutes of Health, including the acquisition of real property, $206,957,000, to remain available until expended, of which $90,000,000 shall be for the clinical research center and $16,957,000 for the Vaccine Facility: <proviso><i>Provided,</i> That notwithstanding any other provision of law, a single contract or related contracts for the development and construction of the clinical research center may be employed which collectively include the full scope of the project:</proviso> <proviso><i>Provided further,</i> That the solicitation and contract shall contain the clause “availability of funds” found at 48 CFR 52.232–18:</proviso> <proviso><i>Provided further,</i> That notwithstanding any other provision of law, a single contract or related contracts for the development and construction of the Vaccine Facility may be employed which collectively include the full scope of the project:</proviso> <proviso><i>Provided further,</i> That the solicitation and contract shall contain the clause “availability of funds” found in 48 CFR 52.232–18.</proviso><page identifier="/us/stat/111/1483">111 STAT. 1483</page></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Substance Abuse and Mental Health Services Administration</heading> <appropriations level="small"> <heading>substance abuse and mental health services</heading> <content>For carrying out titles V and XIX of the Public Health Service Act with respect to substance abuse and mental health services, the Protection and Advocacy for Mentally Ill Individuals Act of 1986, and section 301 of the Public Health Service Act with respect to program management, $2,146,743,000, of which $10,000,000 shall be for grants to rural and Native American projects: <proviso><i>Provided,</i> That notwithstanding any other provision of law, each State’s allotment for fiscal year 1998 for each of the programs under subparts I and II of part B of title XIX of the Public Health Service Act shall be equal to such State’s allotment for such programs for fiscal year 1997.</proviso></content> </appropriations> <appropriations level="small"> <heading>retirement pay and medical benefits for commissioned officers</heading> <content>For retirement pay and medical benefits of Public Health Service Commissioned Officers as authorized by law, and for payments under the Retired Serviceman’s Family Protection Plan and Survivor Benefit Plan and for medical care of dependents and retired personnel under the Dependents’ Medical Care Act (10 U.S.C. ch. 55), and for payments pursuant to section 229(b) of the Social Security Act (42 U.S.C. 429(b)), such amounts as may be required during the current fiscal year.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Agency for Health Care Policy and Research</heading> <appropriations level="small"> <heading>health care policy and research</heading> <content>For carrying out titles III and IX of the Public Health Service Act, and part A of title XI of the Social Security Act, $90,229,000; in addition, amounts received from Freedom of Information Act fees, reimbursable and interagency agreements, and the sale of data tapes shall be credited to this appropriation and shall remain available until expended: <proviso><i>Provided,</i> That the amount made available pursuant to section 926(b) of the Public Health Service Act shall not exceed $56,206,000.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Health Care Financing Administration</heading> <appropriations level="small"> <heading>grants to states for medicaid</heading> <content><p class="indent0 fontsize10">For carrying out, except as otherwise provided, titles XI and XIX of the Social Security Act, $71,602,429,000, to remain available until expended.</p> <p class="indent0 fontsize10">For making, after May 31, 1998, payments to States under title XIX of the Social Security Act for the last quarter of fiscal year 1998 for unanticipated costs, incurred for the current fiscal year, such sums as may be necessary.</p> <p class="indent0 fontsize10">For making payments to States under title XIX of the Social Security Act for the first quarter of fiscal year 1999, $27,800,689,000, to remain available until expended.</p> <p class="indent0 fontsize10">Payment under title XIX may be made for any quarter with respect to a State plan or plan amendment in effect during such quarter, if submitted in or prior to such quarter and approved in that or any subsequent quarter.<page identifier="/us/stat/111/1484">111 STAT. 1484</page></p> </content></appropriations> <appropriations level="small"> <heading>payments to health care trust funds</heading> <content>For payment to the Federal Hospital Insurance and the Federal Supplementary Medical Insurance Trust Funds, as provided under sections 217(g) and 1844 of the Social Security Act, sections 103(c) and 111(d) of the Social Security Amendments of 1965, section 278(d) of Public Law 97–248, and for administrative expenses incurred pursuant to section 201(g) of the Social Security Act, $60,904,000,000.</content> </appropriations> <appropriations level="small"> <heading>program management</heading> <content>For carrying out, except as otherwise provided, titles XI, XVIII, XIX and XXI of the Social Security Act, titles XIII and XXVII of the Public Health Service Act, and the Clinical Laboratory Improvement Amendments of 1988, not to exceed $1,743,066,000 to be transferred from the Federal Hospital Insurance and the Federal Supplementary Medical Insurance Trust Funds, as authorized by section 201(g) of the Social Security Act; together with all funds collected in accordance with section 353 of the Public Health Service Act and such sums as may be collected from authorized user fees and the sale of data, which shall remain available until expended, and together with administrative fees collected relative to Medicare overpayment recovery activities, which shall remain available until expended: <proviso><i>Provided,</i> That all funds derived in accordance with 31 U.S.C. 9701 from organizations established under title XIII of the Public Health Service Act shall be credited to and available for carrying out the purposes of this appropriation:</proviso> <proviso><i>Provided further,</i> That $900,000 shall be for carrying out section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395b">42 USC 1395b note</ref>.</p></sidenote>4021 of Public Law 105–33:</proviso> <proviso><i>Provided further,</i> That in carrying out its legislative mandate, the National Bipartisan Commission on the Future of Medicare shall examine the impact of increased investments in health research on future Medicare costs, and the potential for coordinating Medicare with cost-effective long-term care services:</proviso> <proviso><i>Provided further,</i> That $40,000,000 appropriated under this heading for the transition to a single Part A and Part B processing system shall remain available until expended:</proviso> <proviso><i>Provided further,</i> That funds appropriated under this heading may be obligated to increase Medicare provider audits and implement the Department’s corrective action plan to the Chief Financial Officer’s audit of the Health Care Financing Administration’s oversight of Medicare:</proviso> <proviso><i>Provided further,</i> That the Secretary of Health and Human Services is directed to collect, in aggregate, $95,000,000 in fees in fiscal year 1998 from Medicare + Choice organizations pursuant to section 1857(e)(2) of the Social Security Act and from eligible organizations with risk-sharing contracts under section 1876 of that Act pursuant to section 1876(k)(4)(D) of that Act.</proviso></content> </appropriations> <appropriations level="small"> <heading>health maintenance organization loan and loan guarantee fund</heading> <content>For carrying out subsections (d) and (e) of section 1308 of the Public Health Service Act, any amounts received by the Secretary in connection with loans and loan guarantees under title XIII of the Public Health Service Act, to be available without fiscal year limitation for the payment of outstanding obligations. During fiscal year 1998, no commitments for direct loans or loan guarantees shall be made.<page identifier="/us/stat/111/1485">111 STAT. 1485</page></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Administration for Children and Families</heading> <appropriations level="small"> <heading>family support payments to states</heading> <content><p class="indent0 fontsize10">For making payments to each State for carrying out the program of Aid to Families with Dependent Children under title IVA of the Social Security Act before the effective date of the program of Temporary Assistance to Needy Families (TANF) with respect to such State, such sums as may be necessary: <proviso><i>Provided,</i> That the sum of the amounts available to a State with respect to expenditures under such title IV–A in fiscal year 1997 under this appropriation and under such title IV–A as amended by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 shall not exceed the limitations under section 116(b) of such Act:</proviso> <proviso><i>Provided further,</i> That, notwithstanding section 418(a) of the Social Security Act, for fiscal year 1997 only, the amount of payment under section 418(a)(1) to which each State is entitled shall equal the amount specified as mandatory funds with respect to such State for such fiscal year in the table transmitted by the Administration for Children and Families to State Child Care and Development Block Grant Lead Agencies on August 27, 1996, and the amount of State expenditures in fiscal year 1994 or 1995 (whichever is greater) that equals the non-Federal share for the programs described in section 418(a)(1)(A) shall be deemed to equal the amount specified as maintenance of effort with respect to such State for fiscal year 1997 in such table.</proviso></p> <p class="indent0 fontsize10">For making, after May 31 of the current fiscal year, payments to States or other non-Federal entities under titles I, IV–D, X, XI, XTV, and XVI of the Social Security Act and the Act of July 5, 1960 (24 U.S.C. ch. 9), for the last three months of the current year for unanticipated costs, incurred for the current fiscal year, such sums as may be necessary.</p> <p class="indent0 fontsize10">For making payments to States or other non-Federal entities under titles I, IV–D, X, XI, XIV, and XVI of the Social Security Act and the Act of July 5, 1960 (24 U.S.C. ch. 9), for the first quarter of fiscal year 1999, $660,000,000, to remain available until expended.</p> </content></appropriations> <appropriations level="small"> <heading>low income home energy assistance</heading> <content><p class="indent0 fontsize10">For making payments under title XXVI of the Omnibus Budget Reconcihation Act of 1981, $1,100,000,000, to be available for obligation in the period October 1, 1998 through September 30, 1999.</p> <p class="indent0 fontsize10">For making payments under title XXVI of such Act, $300,000,000: <proviso><i>Provided,</i> That these funds are hereby designated by Congress to be emergency requirements pursuant to section 251(b)(2)(D) of the Balanced Budget and Emergency Deficit Control Act of 1985:</proviso> <proviso><i>Provided further,</i> That these funds shall be made available only after submission to Congress of a formal budget request by the President that includes designation of the entire amount of the request as an emergency requirement as defined in the Balanced Budget and Emergency Deficit Control Act.</proviso></p> </content></appropriations> <appropriations level="small"> <heading>refugee and entrant assistance</heading> <content>For making payments for refugee and entrant assistance activities authorized by title IV of the Immigration and Nationality Act and section 501 of the Refugee Education Assistance Act of <page identifier="/us/stat/111/1486">111 STAT. 1486</page>1980 (Public Law 96–422), $415,000,000: <proviso><i>Provided,</i> That funds appropriated pursuant to section 414(a) of the Immigration and Nationality Act under Public Law 104–134 for fiscal year 1996 shall be available for the costs of assistance provided and other activities conducted in such year and in fiscal years 1997 and 1998.</proviso></content> </appropriations> <appropriations level="small"> <heading>child care and development block grant</heading> <subheading>(including transfer of funds)</subheading> <content>For carrying out sections 658A through 658R of the Omnibus Budget Reconciliation Act of 1981 (The Child Care and Development Block Grant Act of 1990), in addition to amounts already appropriated for fiscal year 1998, $65,672,000; and to become available on October 1, 1998 and remain available through September 30, 1999, $1,000,000,000: <proviso><i>Provided,</i> That of funds appropriated for each of fiscal years 1998 and 1999, $19,120,000 shall be available for child care resource and referral and school-aged child care activities, of which for fiscal year 1998 $3,000,000 shall be derived from an amount that shall be transferred from the amount appropriated under section 452(j) of the Social Security Act (42 U.S.C. 652(j)) for fiscal year 1997 and remaining available for expenditure:</proviso> <proviso><i>Provided further,</i> That of the funds provided for fiscal year 1998, $50,000,000 shall be reserved by the States for activities authorized under section 658G of the Omnibus Budget Reconciliation Act of 1981 (The Child Care and Development Block Grant Act of 1990), such funds to be in addition to the amounts required to be reserved by States under such section 658G.</proviso></content> </appropriations> <appropriations level="small"> <heading>social services block grant</heading> <content>For making grants to States pursuant to section 2002 of the Social Security Act, $2,299,000,000: <proviso><i>Provided,</i> That notwithstanding section 2003(c) of such Act, as amended, the amount specified for allocation under such section for fiscal year 1998 shall be $2,299,000,000.</proviso></content> </appropriations> <appropriations level="small"> <heading>children and families services programs</heading> <subheading>(including rescissions)</subheading> <content><p class="indent0 fontsize10">For carrying out, except as otherwise provided, the Runaway and Homeless Youth Act, the Developmental Disabilities Assistance and Bill of Rights Act, the Head Start Act, the Child Abuse Prevention and Treatment Act (including section 105(a)(2) of the Child Abuse Prevention and Treatment Act), the Family Violence Prevention and Services Act, the Native American Programs Act of 1974, title II of Public Law 95–266 (adoption opportunities), the Abandoned Infants Assistance Act of 1988, part B(1) of title IV and sections 413, 429A and 1110 of the Social Security Act; for making payments under the Community Services Block Grant Act; and for necessary administrative expenses to carry out said Acts and titles I, IV, X, XI, XIV, XVI, and XX of the Social Security Act, the Act of July 5, 1960 (24 U.S.C. ch. 9), the Omnibus Budget Reconciliation Act of 1981, title IV of the Immigration and Nationality Act, section 501 of the Refugee Education Assistance Act of 1980, and section 126 and titles IV and V of Public Law 100485, $5,682,916,000, of which $542,165,000 shall be for making <page identifier="/us/stat/111/1487">111 STAT. 1487</page>payments under the Community Services Block Grant Act, and of which $4,355,000,000 shall be for making payments under the Head Start Act: <proviso><i>Provided,</i> That of the funds made available for the Head Start Act, $279,250,000 shall be set aside for the Head Start Program for Families with Infants and Toddlers (Early Head Start):</proviso> <proviso><i>Provided further,</i> That to the extent Community Services Block Grant funds are distributed as grant funds by a State to an eligible entity as provided under the Act, and have not been expended by such entity, they shall remain with such entity for carryover into the next fiscal year for expenditure by such entity consistent with program purposes.</proviso></p> <p class="indent0 fontsize10">In addition, $93,000,000, to be derived from the Violent Crime Reduction Trust Fund, for carrying out sections 40155, 40211 and 40241 of Public Law 103–322.</p> <p class="indent0 fontsize10">Funds appropriated for fiscal year 1998 under section 429A(e), part B of title IV of the Social Security Act shall be reduced by $6,000,000.</p> <p class="indent0 fontsize10">Funds appropriated for fiscal year 1998 under section 413(h)(1) of the Social Security Act shall be reduced by $15,000,000.</p> </content></appropriations> <appropriations level="small"> <heading>family preservation and support</heading> <content>For carrying out section 430 of the Social Security Act, $255,000,000.</content> </appropriations> <appropriations level="small"> <heading>payments to states for foster care and adoption assistance</heading> <content><p class="indent0 fontsize10">For making payments to States or other non-Federal entities, under title IV–E of the Social Security Act, $3,200,000,000.</p> <p class="indent0 fontsize10">For making payments to States or other non-Federal entities, under title IV–E of the Social Security Act, for the first quarter of fiscal year 1999, $1,157,500,000.</p> </content></appropriations> </appropriations> <appropriations level="intermediate"> <heading>Administration on Aging</heading> <appropriations level="small"> <heading>aging services programs</heading> <content>For carrying out, to the extent not otherwise provided, the Older Americans Act of 1965, as amended, $865,050,000: <proviso><i>Provided,</i> That notwithstanding section 308(b)(1) of such Act, the amounts available to each State for administration of the State plan under title III of such Act shall be reduced not more than 5 percent below the amount that was available to such State for such purpose for fiscal year 1995:</proviso> <proviso><i>Provided further,</i> That of the funds appropriated to carry out section 303(a)(1) of such Act, $4,449,000 shall be available for carrying out section 702(a) of such Act and $4,732,000 shall be available for carrying out section 702(b) of such Act:</proviso> <proviso><i>Provided further,</i> That in considering grant applications for nutrition services for elder Indian recipients, the Assistant Secretary shall provide maximum flexibility to applicants who seek to take into account subsistence, local customs, and other characteristics that are appropriate to the unique cultural, regional, and geographic needs of the American Indian, Alaska and Hawaiian Native communities to be served.</proviso><page identifier="/us/stat/111/1488">111 STAT. 1488</page></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Office of the Secretary</heading> <appropriations level="small"> <heading>general departmental management</heading> <content>For necessary expenses, not otherwise provided, for general departmental management, including hire of six sedans, and for carrying out titles III, XVII, and XX of the Public Health Service Act, and the United States-Mexico Border Health Commission Act, $171,631,000, of which $500,000 shall remain available until expended, together with $5,851,000, to be transferred and expended as authorized by section 201(g)(1) of the Social Security Act from the Hospital Insurance Trust Fund and the Supplemental Medical Insurance Trust Fund: <proviso><i>Provided,</i> That of the funds made available under this heading for carrying out title XVII of the Public Health Service Act, $1,500,000 shall be available until expended for extramural construction.</proviso></content> </appropriations> <appropriations level="small"> <heading>office of inspector general</heading> <content>For expenses necessary for the Office of Inspector General in carrying out the provisions of the Inspector General Act of 1978, as amended, $31,921,000.</content> </appropriations> <appropriations level="small"> <heading>office for civil rights</heading> <content>For expenses necessary for the Office for Civil Rights, $16,345,000, together with not to exceed $3,314,000, to be transferred and expended as authorized by section 201(g)(1) of the Social Security Act from the Hospital Insurance Trust Fund and the Supplemental Medical Insurance Trust Fund.</content> </appropriations> <appropriations level="small"> <heading>policy research</heading> <content>For carrying out, to the extent not otherwise provided, research studies under section 1110 of the Social Security Act, $14,000,000.</content> </appropriations> </appropriations> <level> <heading class="centered">GENERAL PROVISIONS</heading> <section> <num value="201"><inline class="smallCaps">Sec</inline>. 201.</num> <content class="inline">Funds appropriated in this title shall be available for not to exceed $37,000 for official reception and representation expenses when specifically approved by the Secretary.</content> </section> <section> <num value="202"><inline class="smallCaps">Sec</inline>. 202.</num><sidenote><p class="indent0 firstIndent0 fontsize8">Children, youth and families.</p><p class="indent0 firstIndent0 fontsize8">AIDS.</p></sidenote> <content class="inline">The Secretary shall make available through assignment not more than 60 employees of the Public Health Service to assist in child survival activities and to work in AIDS programs through and with funds provided by the Agency for International Development, the United Nations International Children’s Emergency Fund or the World Health Organization.</content> </section> <section> <num value="203"><inline class="smallCaps">Sec</inline>. 203.</num> <content class="inline">None of the funds appropriated under this Act may be used to implement section 399L(b) of the Public Health Service Act or section 1503 of the National Institutes of Health Revitalization Act of 1993, Public Law 103–43.</content> </section> <section> <num value="204"><inline class="smallCaps">Sec</inline>. 204.</num> <content class="inline">None of the funds appropriated in this Act for the National Institutes of Health and the Substance Abuse and Mental Health Services Administration shall be used to pay the salary of an individual, through a grant or other extramural mechanism, at a rate in excess of $125,000 per year.</content> </section> <section> <num value="205"><inline class="smallCaps">Sec</inline>. 205.</num> <content class="inline">None of the funds appropriated in this Act may be expended pursuant to section 241 of the Public Health Service Act, except for funds specifically provided for in this Act, or for <page identifier="/us/stat/111/1489">111 STAT. 1489</page>other taps and assessments made by any office located in the Department of Health and Human Services, prior to the Secretary’s preparation and submission of a report to the Committee on Appropriations of the Senate and of the House detailing the planned uses of such funds.</content> </section> <section> <num value="206"><inline class="smallCaps">Sec</inline>. 206.</num> <content class="inline">None of the funds appropriated in this Act may be obligated or expended for the Federal Council on Aging under the Older Americans Act or the Advisory Board on Child Abuse and Neglect under the Child Abuse Prevention and Treatment Act.</content> </section> <level> <heading class="centered">(<inline class="smallCaps">transfer of funds</inline>)</heading> <section> <num value="207"><inline class="smallCaps">Sec</inline>. 207.</num> <content class="inline">Not to exceed 1 percent of any discretionary funds (pursuant to the Balanced Budget and Emergency Deficit Control Act, as amended) which are appropriated for the current fiscal year for the Department of Health and Human Services in this Act may be transferred between appropriations, but no such appropriation shall be increased by more than 3 percent by any such transfer: <proviso><i>Provided,</i> That the Appropriations Committees of both Houses of Congress are notified at least fifteen days in advance of any transfer.</proviso></content> </section> <section> <num value="208"><inline class="smallCaps">Sec</inline>. 208.</num> <content class="inline">The Director of the National Institutes of Health, jointly with the Director of the Office of AIDS Research, may transfer up to 3 percent among institutes, centers, and divisions from the total amounts identified by these two Directors as funding for research pertaining to the human immunodeficiency virus: <proviso><i>Provided,</i> That the Congress is promptly notified of the transfer.</proviso></content> </section> <section> <num value="209"><inline class="smallCaps">Sec</inline>. 209.</num> <content class="inline">Of the amounts made available in this Act for the National Institutes of Health, the amount for research related to the human immunodeficiency virus, as jointly determined by the Director of NIH and the Director of the Office of AIDS Research, shall be made available to the “Office of AIDS Research” account. The Director of the Office of AIDS Research shall transfer from such account amounts necessary to carry out section 2353(d)(3) of the Public Health Service Act.</content> </section> <section> <num value="210"><inline class="smallCaps">Sec</inline>. 210.</num> <content class="inline">Funds appropriated in this Act for the National Institutes of Health may be used to provide transit subsidies in amounts consistent with the transportation subsidy programs authorized under section 629 of Public Law 101–509 to non-FTE bearing positions including trainees, visiting fellows and volunteers.</content> </section> <section> <num value="211"><inline class="smallCaps">Sec</inline>. 211.</num> <subsection class="inline"><num value="a">(a)</num> <content>The Secretary of Health and Human Services<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s247e">42 USC 247e note</ref>.</p></sidenote> may in accordance with this section provide for the relocation of the Federal facility known as the Gillis W. Long Hansen’s Disease Center (located in the vicinity of Carville, in the State of Louisiana), including the relocation of the patients of the Center.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><paragraph class="inline"><num value="1">(1)</num> <content>Subject to paragraph (2), in relocating the Center the Secretary may on behalf of the United States transfer to the State of Louisiana, without charge, title to the real property and improvements that as of the date of the enactment of this Act constitute the Center. Such real property is a parcel consisting of approximately 330 acres. The exact acreage and legal description used for purposes of the transfer shall be in accordance with a survey satisfactory to the Secretary.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <content>Any conveyance under paragraph (1) is not effective unless the deed or other instrument of conveyance contains the conditions specified in subsection (d); the instrument specifies that the United States and the State of Louisiana agree to such conditions; and <page identifier="/us/stat/111/1490">111 STAT. 1490</page>the instrument specifies that, if the State engages in a material breach of the conditions, title to the real property and improvements involved reverts to the United States at the election of the Secretary.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><paragraph class="inline"><num value="1">(1)</num> <content>With respect to Federal equipment and other items of Federal personal property that are in use at the Center as of the date of the enactment of this Act, the Secretary may, subject to paragraph (2), transfer to the State such items as the Secretary determines to be appropriate, if the Secretary makes the transfer under subsection (b).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <content>A transfer of equipment or other items may be made under paragraph (1) only if the State agrees that, during the 30-year period beginning on the date on which the transfer under subsection (b) is made, the items will be used exclusively for purposes that promote the health or education of the public, except that the Secretary may authorize such exceptions as the Secretary determines to be appropriate.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <chapeau>For purposes of subsection (b)(2), the conditions specified in this subsection with respect to a transfer of title are the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>During the 30-year period beginning on the date on which the transfer is made, the real property and improvements referred to in subsection (b)(1) (referred to in this subsection as the “transferred property”) will be used exclusively for purposes that promote the health or education of the public, with such incidental exceptions as the Secretary may approve.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>For purposes of monitoring the extent to which the transferred property is being used in accordance with paragraph (1), the Secretary will have access to such documents as the Secretary determines to be necessary, and the Secretary may require the advance approval of the Secretary for such contracts, conveyances of real or personal property, or other transactions as the Secretary determines to be necessary.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>The relocation of patients from the transferred property will be completed not later than 3 years after the date on which the transfer is made, except to the extent the Secretary determines that relocating particular patients is not feasible. During the period of relocation, the Secretary will have unrestricted access to the transferred property, and after such period will have such access as may be necessary with respect to the patients who pursuant to the preceding sentence are not relocated.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num><subparagraph class="inline"><num value="A">(A)</num> <content>With respect to projects to make repairs and energy-related improvements at the transferred property, the Secretary will provide for the completion of all such projects for which contracts have been awarded and appropriations have been made as of the date on which the transfer is made.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B)</num> <chapeau>If upon completion of the projects referred to in subparagraph (A) there are any unobligated balances of amounts appropriated for the projects, and the sum of such balances is in excess of $100,000—</chapeau> <clause class="indent2 fontsize10"><num value="i">(i)</num> <content>the Secretary will transfer the amount of such excess to the State; and</content></clause> <clause class="indent2 fontsize10"><num value="ii">(ii)</num> <content>the State will expend such amount for the purposes referred to in paragraph (1), which may include the renovation of facilities at the transferred property.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num><subparagraph class="inline"><num value="A">(A)</num> <content>The State will maintain the cemetery located on the transferred property, will permit individuals who were long-<page identifier="/us/stat/111/1491">111 STAT. 1491</page>term-care patients of the Center to be buried at the cemetery, and will permit members of the public to visit the cemetery.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B)</num> <content>The State will permit the Center to maintain a museum on the transferred property, and will permit members of the public to visit the museum.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C)</num> <content>In the case of any waste products stored at the transferred property as of the date of the transfer, the Federal Government will after the transfer retain title to and responsibility for the products, and the State will not require that the Federal Government remove the products from the transferred property.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <chapeau>In the case of each individual who as of the date of the enactment of this Act is a Federal employee at the transferred property with facilities management or dietary duties:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>The State will offer the individual an employment position with the State, the position with the State will nave duties similar to the duties the individual performed in his or her most recent position at the transferred property, and the position with the State will provide compensation and benefits that are similar to the compensation and benefits provided for such most recent position, subject to the concurrence of the Governor of the State.</content></subparagraph> <subparagraph class="indent2 fontsize10"></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <content>The Federal Government may, consistent with the intended uses by the State of the transferred property, carry out at such property activities regarding at-risk youth.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8)</num> <content>Such additional conditions as the Secretary determines to be necessary to protect the interests of the United States.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num><paragraph class="inline"><num value="1">(1)</num> <content>This subsection applies if the transfer under subsection<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> (b) is made.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <chapeau>In the case of each individual who as of the date of the enactment of this Act is a Federal employee at the Center with facilities management or dietary duties, and who becomes an employee of the State pursuant to subsection (d)(6)(A):</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <chapeau>The provisions of subchapter III of chapter 83 of title 5, United States Code, or of chapter 84 of such title, whichever are applicable, that relate to disability shall be considered to remain in effect with respect to the individual (subject to subparagraph (C)) until the earlier of—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>the expiration of the 2-year period beginning on the date on which the transfer under subsection (b) is made; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>the date on which the individual first meets all conditions for coverage under a State program for payments during retirement by reason of disability.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>The payments to be made by the State pursuant to subsection (d)(6)(B) with respect to the individual are payments to the Civil Service Retirement and Disability Fund, if the individual is receiving Federal disability coverage pursuant to subparagraph (A). Such payments are to be made in a total amount equal to that portion of the normal-cost percentage (determined through the use of dynamic assumptions) of the basic pay of the individual that is allocable to such coverage <page identifier="/us/stat/111/1492">111 STAT. 1492</page>and is paid for service performed during the period for which such coverage is in effect. Such amount is to be determined in accordance with chapter 84 of such title 5, is to be paid at such time and in such manner as mutually agreed by the State and the Office of Personnel Management, and is in lieu of individual or agency contributions otherwise required.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>In the determination pursuant to subparagraph (A) of whether the individual is eligible for Federal disability coverage (during the applicable period of time under such subparagraph), service as an employee of the State after the date of the transfer under subsection (b) shall be counted toward the service requirement specified in the first sentence of section 8337(a) or 8451(a)(1)(A) of such title 5 (whichever is applicable).</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3)</num> <chapeau>In the case of each individual who as of the date of the enactment of this Act is a Federal employee with a position at the Center and is, for duty at the Center, receiving the pay differential under section 208(e) of the Public Health Service Act or under section 5545(d) of title 5, United States Code:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>If as of the date of the transfer under subsection (b) the individual is eligible for an annuity under section 8336 or 8412 of title 5, United States Code, then once the individual separates from the service and thereby becomes entitled to receive the annuity, the pay differential shall be included in the computation of the annuity if the individual separated from the service not later than the expiration of the 90-day period beginning on the date of the transfer.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>If the individual is not eligible for such an annuity as of the date of the transfer under subsection (b) but subsequently does become eligible, then once the individual separates from the service and thereby becomes entitled to receive the annuity, the pay differential shall be included in the computation of the annuity if the individual separated from the service not later than the expiration of the 90-day period beginning on the date on which the individual first became eligible for the annuity.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>For purposes of this paragraph, the individual is eligible for the annuity if the individual meets all conditions under such section 8336 or 8412 to be entitled to the annuity, except the condition that the individual be separated from the service.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="4">(4)</num> <chapeau>With respect to individuals who as of the date of the enactment of this Act are Federal employees with positions at the Center and are not, for duty at the center, receiving the pay differential under section 208(e) of the Public Health Service Act or under section 5545(d) of title 5, United States Code:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>During the calendar years 1997 and 1998, the Secretary may in accordance with this paragraph provide to any such individual a voluntary separation incentive payment. The purpose of such payments is to avoid or minimize the need for involuntary separations under a reduction in force with respect to the Center.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>During calendar year 1997, any payment under subparagraph (A) shall be made under section 663 of the Treasury, Postal Service, and General Government Appropriations Act, 1997 (as contained in section 101(f) of division A of Public Law 104–208), except that, for purposes of this subparagraph, subsection (b) of such section 663 does not apply.<page identifier="/us/stat/111/1493">111 STAT. 1493</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>During calendar year 1998, such section 663 applies<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> with respect to payments under subparagraph (A) to the same extent and in the same manner as such section applied with respect to the payments during fiscal year 1997, and for purposes of this subparagraph, the reference in subsection (c)(2)(D) of such section 663 to December 31, 1997, is deemed to be a reference to December 31, 1998.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f)</num> <chapeau>The following provisions apply if under subsection (a) the<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> Secretary makes the decision to relocate the Center:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>The site to which the Center is relocated shall be in the vicinity of Baton Rouge, in the State of Louisiana.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>The facility involved shall continue to be designated as the Gillis W. Long Hansen’s Disease Center.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>The Secretary shall make reasonable efforts to inform the patients of the Center with respect to the planning and carrying out of the relocation.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>In the case of each individual who as of October 1, 1996, was a patient of the Center and is considered by the Director of the Center to be a long-term-care patient (referred to in this subsection as an “eligible patient”), the Secretary shall continue to provide for the long-term care of the eligible patient, without charge, for the remainder of the life of the patient.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num><subparagraph class="inline"><num value="A">(A)</num> <chapeau>For purposes of paragraph (4), an eligible patient who is legally competent has the following options with respect to support and maintenance and other nonmedical expenses:</chapeau> <clause class="indent2 fontsize10"><num value="i">(i)</num> <content>For the remainder of his or her life, the patient may reside at the Center.</content></clause> <clause class="indent2 fontsize10"><num value="ii">(ii)</num> <content>For the remainder of his or her life, the patient may receive payments each year at an annual rate of $33,000 (adjusted in accordance with subparagraphs (C) and (D)), and may not reside at the Center. Payments under this clause are in complete discharge of the obligation of the Federal Government under paragraph (4) for support and maintenance and other nonmedical expenses of the patient.</content></clause> </subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B)</num> <content>The choice by an eligible patient of the option under clause (i) of subparagraph (A) may at any time be revoked by the patient, and the patient may instead choose the option under clause (ii) of such subparagraph. The choice by an eligible patient of the option under such clause (ii) is irrevocable.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C)</num> <content>Payments under subparagraph (A)(ii) shall be made on a monthly basis, and shall be pro rated as applicable. In 1999 and each subsequent year, the monthly amount of such payments shall be increased by a percentage equal to any percentage increase taking effect under section 215(i) of the Social Security Act (relating to a cost-of-living increase) for benefits under title II of such Act (relating to Federal old-age, survivors, and disability insurance benefits). Any such percentage increase in monthly payments under subparagraph (A)(ii) shall take effect in the same month as the percentage increase under such section 215(i) takes effect.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="D">(D)</num> <chapeau>With respect to the provision of outpatient and inpatient medical care for Hansen’s disease and related complications to an eligible patient:<page identifier="/us/stat/111/1494">111 STAT. 1494</page></chapeau> <clause class="indent2 fontsize10"><num value="i">(i)</num> <content>The choice the patient makes under subparagraph (A) does not affect the responsibility of the Secretary for providing to the patient such care at or through the Center.</content></clause> <clause class="indent2 fontsize10"><num value="ii">(ii)</num> <content>If the patient chooses the option under subparagraph (A)(ii) and receives inpatient care at or through the Center, the Secretary may reduce the amount of payments under such subparagraph, except to the extent that reimbursement for the expenses of such care is available to the provider of the care through the program under title XVIII of the Social Security Act or the program under title XIX of such Act. Any such reduction shall be made on the basis of the number of days for which the patient received the inpatient care.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>The Secretary shall provide to each eligible patient such information and time as may be necessary for the patient to make an informed decision regarding the options under paragraph (5)(A).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7)</num> <content>After the date of the enactment of this Act, the Center may not provide long-term care for any individual who as of such date was not receiving such care as a patient of the Center.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8)</num> <content>If upon completion of the projects referred to in subsection (d)(4)(A) there are unobligated balances of amounts appropriated for the projects, such balances are available to the Secretary for expenses relating to the relocation of the Center, except that, if the sum of such balances is in excess of $100,000, such excess is available to the State in accordance with subsection (d)(4)(B). The amounts available to the Secretary pursuant to the preceding sentence are available until expended.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g)</num> <chapeau>For purposes of this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>The term “Center” means the Gillis W. Long Hansen’s Disease Center.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>The term “Secretary” means the Secretary of Health and Human Services.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>The term “State” means the State of Louisiana.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h)</num> <content>Section 320 of the Public Health Service Act (42 U.S.C. 247e) is amended by striking the section designation and all that follows and inserting the following: <quotedContent> <section> <num value="320">“<inline class="smallCaps">Sec</inline>. 320.</num><sidenote><p class="indent0 firstIndent0 fontsize8">Louisiana.</p></sidenote> <subsection class="inline"><num value="a">(a)</num><paragraph class="inline"><num value="1">(1)</num> <content>At or through the Gillis W. Long Hansen’s Disease Center (located in the State of Louisiana), the Secretary shall without charge provide short-term care and treatment, including outpatient care, for Hansen’s disease and related complications to any person determined by the Secretary to be in need of such care and treatment. The Secretary may not at or through such Center provide long-term care for any such disease or complication.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2)</num> <content>The Center referred to in paragraph (1) shall conduct training in the diagnosis and management of Hansen’s disease and related complications, and shall conduct and promote the coordination of research (including clinical research), investigations, demonstrations, and studies relating to the causes, diagnosis, treatment, control, and prevention of Hansen’s disease and other mycobacterial diseases and complications related to such diseases.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3)</num> <content>Paragraph (1) is subject to section 211 of the Department of Health and Human Services Appropriations Act, 1998.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <content>In addition to the Center referred to in subsection (a), the Secretary may establish sites regarding persons with Hansen’s <page identifier="/us/stat/111/1495">111 STAT. 1495</page>disease. Each such site shall provide for the outpatient care and treatment for Hansen’s disease and related complications to any person determined by the Secretary to be in need of such care and treatment.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <content>The Secretary shall carry out subsections (a) and (b) acting through an agency of the Service. For purposes of the preceding sentence, the agency designated by the Secretary shall carry out both activities relating to the provision of health services and activities relating to the conduct of research.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <content>The Secretary shall make payments to the Board of Health of the State of Hawaii for the care and treatment (including outpatient care) in its facilities of persons suffering from Hansen’s disease at a rate determined by the Secretary. The rate shall be approximately equal to the operating cost per patient of such facilities, except that the rate may not exceed the comparable costs per patient with Hansen’s disease for care and treatment provided by the Center referred to in subsection (a). Payments under this subsection are subject to the availability of appropriations for such purpose.”.</content> </subsection> </section> </quotedContent> </content></subsection> </section> <section> <num value="212"><inline class="smallCaps">Sec</inline>. 212.</num> <content>None of the funds appropriated in the Act may be made available to any entity under title X of the Public Health Service Act unless the applicant for the award certifies to the Secretary that it encourages family participation in the decision of minors to seek family planning services and that it provides counseling to minors on how to resist attempts to coerce minors into engaging in sexual activities.</content> </section> </level> <level> <heading class="centered"><inline class="smallCaps">comprehensive independent study of nih research priority setting</inline></heading> <section> <num value="213"><inline class="smallCaps">Sec</inline>. 213.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Study by the Institute of Medicine</inline>.—</heading><content>Not<sidenote><p class="indent0 firstIndent0 fontsize8">Contracts.</p></sidenote> later than 30 days after the date of enactment of this Act, the Secretary of Health and Human Services shall enter into a contract with the Institute of Medicine to conduct a comprehensive study of the policies and process used by the National Institutes of Health to determine funding allocations for biomedical research.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Matters To Be Assessed</inline>.—</heading><chapeau>The study under subsection (a) shall assess—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>the factors or criteria used by the National Institutes of Health to determine funding allocations for disease research;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>the process by which research funding decisions are made;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>the mechanisms for public input into the priority setting process; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>the impact of statutory directives on research funding decisions.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Report</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Not later than 6 months after the date on which the Secretary of Health and Human Services enters into the contract under subsection (a), the Institute of Medicine shall submit a report concerning the study to the Committee on Labor and Human Resources and the Committee on Appropriations of the Senate, and the Committee on Commerce and the Committee on Appropriations of the House of Representatives.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Requirement</inline>.—</heading><content><p class="indent0 fontsize10">The report under paragraph (1) shall set forth the findings, conclusions, and recommendations of the Institute of Medicine for improvements in the National <page identifier="/us/stat/111/1496">111 STAT. 1496</page>Institutes of Health research funding policies and processes and for any necessary congressional action.</p> <p class="indent0 fontsize10">This title may be cited as the “Department of Health and Human Services Appropriations Act, 1998”.</p> </content></paragraph> </subsection> </section> </level> </level> <num value="III">TITLE III—</num><sidenote><p class="indent0 firstIndent0 fontsize8">Department of Education Appropriations Act, 1998.</p></sidenote><heading>DEPARTMENT OF EDUCATION</heading> <appropriations level="intermediate"> <heading>education reform</heading> <content>For carrying out activities authorized by titles III and IV of the Goals 2000: Educate America Act, the School-to-Work Opportunities Act, and sections 3132, 3136, and 3141 and parts B, C, and D of title III of the Elementary and Secondary Education Act of 1965, $1,275,035,000, of which $464,500,000 for the Goals 2000: Educate America Act and $200,000,000 for the School-to-Work Opportunities Act shall become available on July 1, 1998, and remain available through September 30, 1999: <proviso><i>Provided,</i> That none of the funds appropriated under this heading shall be obligated or expended to carry out section 304(a)(2)(A) of the Goals 2000: Educate America Act, except that no more than $1,500,000 may be used to carry out activities under section 314(a)(2) of that Act:</proviso> <proviso><i>Provided further,</i> That section 315(a)(2) of the Goals 2000 Act shall not apply:</proviso> <proviso><i>Provided further,</i> That up to one-half of 1 percent of the amount available under section 3132 shall be set aside for the outlying areas, to be distributed on the basis of their relative need as determined by the Secretary in accordance with the purposes<sidenote><p class="indent0 firstIndent0 fontsize8">Federal Register, publication</p></sidenote> of the program:</proviso> <proviso><i>Provided further,</i> That if any State educational agency does not apply for a grant under section 3132, that State’s allotment under section 3131 shall be reserved by the Secretary for grants to local educational agencies in that State that apply directly to the Secretary according to the terms and conditions published by the Secretary in the Federal Register:</proviso> <proviso><i>Provided further,</i> That of the funds made available under section 3136, $5,000,000 shall be provided to the Hospitals, Universities, Businesses, and Schools program to develop a regional information infrastructure in the mid-Atlantic region, $7,300,000 shall be for the “I Can Learn” project to integrate technology into eighth grade algebra classrooms and $800,000 shall be provided for a distance education network involving a consortium of nine school districts and Nicolet Area Technical College:</proviso> <proviso><i>Provided further,</i> That of the amount available for title III, part B of the Elementary and Secondary Education Act of 1965, as amended, $8,000,000 shall be awarded to continue and expand the Iowa Communication Network statewide fiber optic demonstration project.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>education for the disadvantaged</heading> <content>For carrying out title I of the Elementary and Secondary Education Act of 1965, and section 418A of the Higher Education Act, $8,021,827,000, of which $6,553,249,000 shall become available on July 1, 1998, and shall remain available through September 30, 1999, and of which $1,448,386,000 shall become available on October 1, 1998 and shall remain available through September 30, 1999, for academic year 1998–1999: <proviso><i>Provided,</i> That $6,273,212,000 shall be available for basic grants under section 1124:</proviso> <proviso><i>Provided further,</i> That up to $3,500,000 of these funds shall be available to the Secretary on October 1, 1997, to obtain updated local-educational-agency-level census poverty data from the Bureau <page identifier="/us/stat/111/1497">111 STAT. 1497</page>of the Census:</proviso> <proviso><i>Provided further,</i> That $1,102,020,000 shall be available for concentration grants under section 1124A, $6,977,000 shall be available for evaluations under section 1501 and not more than $7,500,000 shall be reserved for section 1308, of which not more than $3,000,000 shall be reserved for section 1308(d):</proviso> <proviso><i>Provided further,</i> That grant awards under section 1124 and 1124A of title I of the Elementary and Secondary Education Act shall be made to each State or local educational agency at no less than 100 percent of the amount such State or local educational agency received under this authority for fiscal year 1997 under Public Laws 104–208 and 105–18:</proviso> <proviso><i>Provided further,</i> That in determining State allocations under any other program administered by the Secretary, amounts provided under Public Law 105–18, or equivalent amounts provided for in this Act, will not be taken into account in determining State allocations:</proviso> <proviso><i>Provided further,</i> That $120,000,000 shall be available under section 1002(g)(2) to demonstrate effective approaches to comprehensive school reform to be allocated and expended in accordance with the instructions relating to this proviso in the statement of the managers on the conference report accompanying this Act:</proviso> <proviso><i>Provided further,</i> That in carrying out this initiative, the Secretary and the States shall support only approaches that show the most promise of enabling children served by title I to meet challenging State content standards and challenging State student performance standards based on reliable research and effective practices, and include an emphasis on basic academics and parental involvement:</proviso> <proviso><i>Provided further,</i> That such funds shall not be available for section 1503.</proviso></content> </appropriations> <appropriations level="small"> <heading>impact aid</heading> <content><p class="indent0 fontsize10">For carrying out programs of financial assistance to federally affected schools authorized by title VIII of the Elementary and Secondary Education Act of 1965, $808,000,000, of which $662,000,000 shall be for basic support payments under section 8003(b), $50,000,000 shall be for payments for children with disabilities under section 8003(d), $62,000,000, to remain available until expended, shall be for payments under section 8003(f), $7,000,000 shall be for construction under section 8007, and $24,000,000 shall be for Federal property payments under section 8002 of which such sums as may be necessary shall be for section 8002(j) and $3,000,000, to remain available until expended, shall be for facilities maintenance under section 8008: <proviso><i>Provided,</i> That section 8003(f)(2) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7709(f)(2)) is amended in clause (ii) in subclause (I) by striking<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s7703">20 USC 7703</ref>.</p></sidenote> “35 percent” and all that follows through the semicolon, and inserting the following: “25 percent of the total student enrollment of such agency. For purposes of this subclause, all students described in section 8003(a)(1) are used to determine eligibility, regardless of whether or not a local educational agency receives funds for these children from section 8003(b) of the Act;”.</proviso></p> <p class="indent0 fontsize10">The amendment made by this proviso shall apply with respect<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s7703">20 USC 7703</ref></p></sidenote> to fiscal years beginning with fiscal year 1996: <proviso><i>Provided,</i> That the Secretary of Education shall treat as timely filed, and shall process for payment, an application for a fiscal year 1998 payment from the local educational agency for Boston, Massachusetts, under section 8003 of the Elementary and Secondary Education Act of 1965 if the Secretary has received that application not later than 30 days after the enactment of this Act: <i>Provided further,</i> That <page identifier="/us/stat/111/1498">111 STAT. 1498</page>the Secretary of Education shall forgive any overpayments established for fiscal year 1994 under section 3(d)(2)(B) of the Act of September 30, 1950 (Public Law 874–81st Congress), for any local educational agency in the State of Texas receiving funds appropriated for fiscal year 1994 under the authority of this section:</proviso> <proviso><i>Provided further,</i> That section 8002 of the Elementary and Education Act of 1965 (20 U.S.C. 7702) is amended by adding the following new subsection:</proviso></p> <quotedContent> <subsection class="indent0 fontsize10"> <num value="j">“(j)</num> <heading><inline class="smallCaps">Additional Assistance for Certain Local Educational Agencies Impacted by Federal Property Acquisition</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Reservation</inline>.—</heading><content>From amounts appropriated under section 8014(g) for a fiscal year, the Secretary snail provide additional assistance to meet special circumstances relating to the provision of education in local educational agencies eligible to receive assistance under this section.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Eligibility</inline>.—</heading><subparagraph class="inline"><num value="A">(A)</num> <chapeau>A local educational agency is eligible to receive additional assistance under this subsection only if such agency—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>received a payment under both this section and section 8003(b) for fiscal year 1996 and is eligible to receive payments under those sections for the year of application;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>provided a free public education to children described under sections 8003(a)(1)(A), (B), or (D);</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>had a military installation located within the geographic boundaries of the local educational agency that was closed as a result of base closure or realignment;</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>remains responsible for the free public education of children residing in housing located on Federal property within the boundaries of the closed military installation but whose parents are on active duty in the uniformed services and assigned to a military activity located within the boundaries of an adjoining local educational agency; and</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>demonstrates to the satisfaction of the Secretary that such agency’s per-pupil revenue derived from local sources for current expenditures is not less than that revenue for the preceding fiscal year.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Maximum amount</inline>.—</heading><subparagraph class="inline"><num value="A">(A)</num> <content>The maximum amount that a local educational agency is eligible to receive under this subsection for any fiscal year, when combined with its payment under subsection (b), shall not be more than 50 percent of the maximum amount determined under subsection (b);</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B)</num> <content>If funds appropriated under section 8014(g) are insufficient to pay the amount determined under subparagraph (A), the Secretary shall ratably reduce the payment to each local education agency eligible under this subsection;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">“(C)</num> <content>If funds appropriated under section 8014(g) are in excess of the amount determined under subparagraph (A) the Secretary shall ratably distribute any excess funds to all local educational agencies eligible for payment under subsection (b) of this section.”:</content></subparagraph> </paragraph> </subsection> </quotedContent> <p class="indent0 fontsize10"><proviso><i>Provided further,</i> That section 8014 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7714) is amended by adding the following new subsection:</proviso></p> <quotedContent> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Additional Assistance for Certain Federal Property Local Educational Agencies</inline>.—</heading><content>For the purpose of carrying out section 8002(j) there are authorized to be appropriated such sums <page identifier="/us/stat/111/1499">111 STAT. 1499</page>as are necessary beginning in fiscal year 1998 and for each succeeding fiscal year.”: <proviso><i>Provided further,</i> That of the funds available for section 8007, the Secretary shall, under such terms and conditions he determines appropriate, first provide $1,500,000 to applicant number 11–2815 and $1,500,000 to applicant number 36–4403 for the construction of public elementary or secondary schools where the current structures are unsafe and pose serious health threats to the students, if requests for funding and construction project descriptions are submitted to the Secretary within 30 days of enactment of this Act:</proviso> <proviso><i>Provided further,</i> That notwithstanding any deadline established by the Secretary of Education under subsection (c) of section 8005 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7705), and without regard to paragraphs (1)(A), (2), and (3) of subsection (d) of that section, the Secretary shall accept, as if timely received, an application from the Maconaquah School Corporation, Bunker Hill, Indiana, under section 8003 of that Act for fiscal year 1996 if the Secretary has received that application not later than 30 days' after the enactment of this Act:</proviso> <proviso><i>Provided further,</i> That notwithstanding any other provision of law, the Secretary of Defense shall treat any data included in an application described in the preceding proviso, and that is approved by the Secretary of Education, as data to be used in determining the eligibility of the Maconaquah School Corporation, Bunker Hill, Indiana, for, and the amount of, a payment for any of the fiscal years 1998 through 2000 under section 386 of the National Defense Authorization Act for Fiscal Year 1993:</proviso> <proviso><i>Provided further,</i> That section 8 of Public Law 104–195 is<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/110/2383">110 Stat 2383</ref>.</p></sidenote> amended by striking the period after “year” and adding the following: “or, for fiscal year 1995 or fiscal year 1996, the amount of any payment under section 8003(f) of the Elementary and Secondary Education Act of 1965”: <i>Provided further,</i> That the Secretary of<sidenote><p class="indent0 firstIndent0 fontsize8">Kentucky.</p></sidenote> Education shall deem the local educational agency serving the Clinton County School District in Albany, Kentucky, to meet the eligibility requirements of section 8002(a)(1)(C) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7702(a)(1)(C)).</proviso></content> </subsection> </quotedContent> </content></appropriations> <appropriations level="intermediate"> <heading>school improvement programs</heading> <content>For carrying out school improvement activities authorized by titles II, IV–A–1 and 2, V–A and B, VI, IX, X, and XIII of the Elementary and Secondary Education Act of 1965; the Stewart B. McKinney Homeless Assistance Act; and the Civil Rights Act of 1964; $1,538,188,000, of which $1,246,300,000 shall become available on July 1, 1998, and remain available through September 30, 1999: <proviso><i>Provided,</i> That of the amount appropriated, $335,000,000 shall be for Eisenhower professional development State grants under title II–B of the Elementary and Secondary Education Act of 1965 of which $25,000,000 shall be for professional development in reading, $350,000,000 shall be for innovative education program strategies State grants under title VI–A of said Act and $750,000 shall be for an evaluation of comprehensive regional assistance centers under title XIII of said Act:</proviso> <proviso><i>Provided further,</i> That of the amount made available for title IV–A–2, $350,000 shall be for the Yonkers Public Schools for innovative anti-drug and antiviolence activities.</proviso><page identifier="/us/stat/111/1500">111 STAT. 1500</page></content> </appropriations> <appropriations level="intermediate"> <heading>child literacy initiative</heading> <subheading>(including transfer of funds)</subheading> <content>For carrying out a literacy initiative, $210,000,000, which shall become available on October 1, 1998 and shall remain available through September 30, 1999 only if specifically authorized by subsequent legislation enacted by July 1, 1998: <proviso><i>Provided,</i> That, if the initiative is not authorized by such date, the funds shall be transferred to “Special Education” to be merged with that account and to be available for the same purposes for which that account is available:</proviso><proviso> <i>Provided further,</i> That the transferred funds shall become available for obligation on July 1, 1999, and shall remain available through September 30, 2000 for academic year 1999–2000.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>indian education</heading> <content>For expenses necessary to carry out, to the extent not otherwise provided, title IX, part A of the Elementary and Secondary Education Act of 1965, as amended, and section 215 of the Department of Education Organization Act, $62,600,000.</content> </appropriations> <appropriations level="intermediate"> <heading>bilingual and immigrant education</heading> <content>For carrying out, to the extent not otherwise provided, bilingual, foreign language and immigrant education activities authorized by parts A and C and section 7203 of title VII of the Elementary and Secondary Education Act of 1965, without regard to section 7103(b), $354,000,000: <proviso><i>Provided,</i> That State educational agencies may use all, or any part of, their part C allocation for competitive grants to local educational agencies:</proviso> <proviso><i>Provided further,</i> That the Department of Education should only support instructional programs which ensure that students completely master English in a timely fashion (a period of three to five years) while meeting rigorous achievement standards in the academic content areas.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>special education</heading> <content>For carrying out the Individuals with Disabilities Education Act, $4,810,646,000, of which $4,565,185,000 shall become available for obligation on July 1, 1998, and shall remain available through September 30, 1999: <proviso><i>Provided,</i> That $1,500,000 of the funds provided shall be for section 687(b)(2)(G), and shall remain available until expended.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>rehabilitation services and disability research</heading> <content>For carrying out, to the extent not otherwise provided, the Rehabilitation Act of 1973, the Technology-Related Assistance for Individuals with Disabilities Act, and the Helen Keller National Center Act, as amended, $2,591,195,000.</content> </appropriations> <appropriations level="intermediate"> <heading>Special Institutions for Persons With Disabilities</heading> <appropriations level="small"> <heading>american printing house for the blind</heading> <content>For carrying out the Act of March 3, 1879, as amended (20 U.S.C. 101 et seq.), $8,186,000.<page identifier="/us/stat/111/1501">111 STAT. 1501</page></content> </appropriations> <appropriations level="small"> <heading>national technical institute for the deaf</heading> <content>For the National Technical Institute for the Deaf under titles I and II of the Education of the Deaf Act of 1986 (20 U.S.C. 4301 et seq.), $44,141,000: <proviso><i>Provided,</i> That from the amount available, the Institute may at its discretion use funds for the endowment program as authorized under section 207.</proviso></content> </appropriations> <appropriations level="small"> <heading>gallaudet university</heading> <content>For the Kendall Demonstration Elementary School, the Model Secondary School for the Deaf, and the partial support of Gallaudet University under titles I and II of the Education of the Deaf Act of 1986 (20 U.S.C. 4301 et seq.), $81,000,000: <proviso><i>Provided,</i> That from the amount available, the University may at its discretion use funds for the endowment program as authorized under section 207.</proviso></content> </appropriations> <appropriations level="small"> <heading>vocational and adult education</heading> <content>For carrying out, to the extent not otherwise provided, the Carl D. Perkins Vocational and Applied Technology Education Act, the Adult Education Act, and the National Literacy Act of 1991, $1,507,698,000, of which $1,504,598,000 shall become available on July 1, 1998 and shall remain available through September 30, 1999; and of which $5,491,000 from amounts available under the Adult Education Act shall be for the National Institute for Literacy under section 384(c): <proviso><i>Provided,</i> That, of the amounts made available for title II of the Carl D. Perkins Vocational and Applied Technology Education Act, $13,497,000 shall be used by the Secretary for national programs under title IV, without regard to section 451:</proviso> <proviso><i>Provided further,</i> That the Secretary may reserve up to $4,998,000 under section 313(d) of the Adult Education Act for activities carried out under section 383 of that Act:</proviso> <proviso><i>Provided further,</i> That no funds shall be awarded to a State Council under section 112(f) of the Carl D. Perkins Vocational and Applied Technology Education Act, and no State shall be required to operate such a Council.</proviso></content> </appropriations> <appropriations level="small"> <heading>student financial assistance</heading> <content><p class="indent0 fontsize10">For carrying out subparts 1, 3, and 4 of part A, part C and part E of title IV of the Higher Education Act or 1965, as amended, $8,978,934,000, which shall remain available through September 30, 1999.</p> <p class="indent0 fontsize10">The maximum Pell Grant for which a student shall be eligible<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1070a">20 USC 1070a note</ref>.</p></sidenote> during award year 1998–1999 shall be $3,000: <proviso><i>Provided,</i> That notwithstanding section 401(g) of the Act, if the Secretary determines, prior to publication of the payment schedule for such award year, that the amount included within this appropriation for Pell Grant awards in such award year, and any funds available from the fiscal year 1997 appropriation for Pell Grant awards, are insufficient to satisfy fully all such awards for which students are eligible, as calculated under section 401(b) of the Act, the amount paid for each such award shall be reduced by either a fixed or variable percentage, or by a fixed dollar amount, as determined in accordance with a schedule of reductions established by the Secretary for this purpose:</proviso> <proviso><i>Provided further,</i> That if the Secretary determines that the funds available to fund Pell Grants for award year 1998–1999 exceed the amount needed to fund Pell Grants at a maximum <page identifier="/us/stat/111/1502">111 STAT. 1502</page>award of $3,000 for that award year, the Secretary may increase the income protection allowances in sections 475(g)(2)(D), and 476(b)(1)(A)(iv)(I), (II), and (III) up to the amounts at which Pell Grant awards calculated using the increased income protection allowances equal the funds available to make Pell Grants in award year 1998–1999 with a $3,000 maximum award, except that the income protection allowance in section 475(g)(2)(D) may not exceed $2,200, the income protection allowance in sections 476(b)(1(A)(iv)(I) and (II) may not exceed $4,250, and the income protection allowance in section 476(b)(1)(A)(iv)(III) may not exceed $7,250.</proviso></p> </content></appropriations> <appropriations level="small"> <heading>federal family education loan program account</heading> <content>For Federal administrative expenses to carry out guaranteed student loans authorized by title IV, part B, of the Higher Education Act, as amended, $46,482,000.</content> </appropriations> <appropriations level="small"> <heading>higher education</heading> <content>For carrying out, to the extent not otherwise provided, parts A and B of title III, without regard to section 360(a)(1)(B)(ii), titles IV, V, VI, VII, and IX, and part A, subpart 1 of part B, and part E of title X and title XI of the Higher Education Act of 1965, as amended, part G of title XV of Public Law 102–325, the Mutual Educational and Cultural Exchange Act of 1961, and Public Law 102–423; $946,738,000, of which $13,700,000 for interest subsidies under title VII of the Higher Education Act shall remain available until expended: <proviso><i>Provided,</i> That funds available for part D of title IX of the Higher Education Act shall be available to fund new and noncompeting continuation awards for academic year 1998–1999 for fellowships awarded under part C of title IX of said Act, under the terms and conditions of part C:</proviso> <proviso><i>Provided further,</i> That from the funds made available under Part A of title X of the Higher Education Act, $1,000,000 shall be awarded to the Advanced Technical Center at Mexico, Missouri for the delivery of technical education in cooperation with community colleges and State technical schools and $3,000,000 shall be for the delivery of technical education and distance learning at Empire State College in New York.</proviso></content> </appropriations> <appropriations level="small"> <heading>howard university</heading> <content>For partial support of Howard University (20 U.S.C. 121 et seq.), $210,000,000: <proviso><i>Provided,</i> That from the amount available, the University may at its discretion use funds for the endowment program as authorized under the Howard University Endowment Act (Public Law 98–480).</proviso></content> </appropriations> <appropriations level="small"> <heading>college housing and academic facilities loans program</heading> <content>For Federal administrative expenses to carry out activities related to facility loans entered into under title VII, part C and section 702 of the Higher Education Act, as amended, $698,000.<page identifier="/us/stat/111/1503">111 STAT. 1503</page></content> </appropriations> <appropriations level="small"> <heading>historically black college and university capital financing, program account</heading> <content><p class="indent0 fontsize10">The total amount of bonds insured pursuant to section 724 of title VII, part B of the Higher Education Act shall not exceed $357,000,000, and the cost, as defined in section 502 of the Congressional Budget Act of 1974, of such bonds shall not exceed zero.</p> <p class="indent0 fontsize10">For administrative expenses to carry out the Historically Black College and University Capital Financing Program entered into pursuant to title VII, part B of the Higher Education Act, as amended, $104,000.</p> </content></appropriations> <appropriations level="small"> <heading>education research, statistics, and improvement</heading> <chapeau>For carrying out activities authorized by the Educational Research, Development, Dissemination, and Improvement Act of 1994, including part E; the National Education Statistics Act of 1994; section 2102 of title II, and parts A, B, I, and K and section 10601 of title X, and part C of title XIII of the Elementary and Secondary Education Act of 1965, as amended, and title VI of Public Law 103–227, $431,438,000: <proviso><i>Provided,</i> That of the amount provided for section 10101 of part A of title X of the Elementary and Secondary Education Act of 1965, $1,000,000 shall be awarded to the National Museum of Women in the Arts; $500,000 shall be for enhanced teacher training in reading in the District of Columbia; $5,000,000 shall be for innovative learning opportunities for at-risk children at children’s museums in Philadelphia, Baltimore, Boston and museums in Chicago; $8,000,000 shall be for a demonstration of public school facilities repair and construction to the Iowa Department of Education; $350,000 shall be awarded to the White Plains City School District to expand an after school program; $100,000 shall be for the Montgomery County, Pennsylvania library network; $55,000 shall be awarded to the St. Stephen Life Center in Louisville, Kentucky; and $25,000,000 shall be available to demonstrate effective approaches to comprehensive school reform to be allocated and expended in accordance with the instructions relating to this proviso in the statement of managers on the conference report accompanying this Act:</proviso> <proviso><i>Provided further,</i> That the funds made available for comprehensive school reform shall become available on July 1, 1998, and remain available through September 30, 1999, and in carrying out this initiative, the Secretary and the States shall support only approaches that show the most promise of enabling children to meet challenging State content standards and challenging State student performance standards based on reliable research and effective practices, and include an emphasis on basic academics and parental involvement:</proviso> <proviso><i>Provided further,</i> That (1) of the amount appropriated under this heading and notwithstanding any other provision of law, the Secretary of Education may award $1,000,000 to a State educational agency (as defined in section 14101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801)) to pay for appraisals, resource studies, and other expenses associated with the exchange of State school trust lands within the boundaries of a national monument for Federal lands outside the boundaries of the monument; and (2) the State educational agency is eligible to receive a grant under paragraph (1) only if the agency serves a State that—</proviso><page identifier="/us/stat/111/1504">111 STAT. 1504</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>has a national monument declared within the State under the authority of the Act entitled “An Act for the preservation of American antiquities”, approved June 8, 1906 (16 U.S.C. 431 et seq.) (commonly known as the Antiquities Act of 1906) that incorporates more than 100,000 acres of State school trust lands within the boundaries of the national monument; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>ranks in the lowest 25 percent of all States when comparing the average per pupil expenditure (as defined in section 14101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801)) in the State to the average per pupil expenditure for each State in the United States.</content></subparagraph> </appropriations> <appropriations level="small"> <heading>institute of museum and library services</heading> <content>For carrying out subtitle B of the Museum and Library Services Act, $146,340,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Departmental Management</heading> <appropriations level="small"> <heading>program administration</heading> <content>For carrying out, to the extent not otherwise provided, the Department of Education Organization Act, including rental of conference rooms in the District of Columbia and hire of two passenger motor vehicles, $341,064,000.</content> </appropriations> <appropriations level="small"> <heading>office for civil rights</heading> <content>For expenses necessary for the Office for Civil Rights, as authorized by section 203 of the Department of Education Organization Act, $61,500,000.</content> </appropriations> <appropriations level="small"> <heading>office of the inspector general</heading> <content>For expenses necessary for the Office of the Inspector General, as authorized by section 212 of the Department of Education Organization Act, $30,242,000.</content> </appropriations> </appropriations> <level> <heading class="centered">GENERAL PROVISIONS</heading> <section> <num value="301"><inline class="smallCaps">Sec</inline>. 301.</num><sidenote><p class="indent0 firstIndent0 fontsize8">Schools.</p><p class="indent0 firstIndent0 fontsize8">Desegration.</p></sidenote> <content class="inline">No funds appropriated in this Act may be used for the transportation of students or teachers (or for the purchase of equipment for such transportation) in order to overcome racial imbalance in any school or school system, or for the transportation of students or teachers (or for the purchase of equipment for such transportation) in order to carry out a plan of racial desegregation of any school or school system.</content> </section> <section> <num value="302"><inline class="smallCaps">Sec</inline>. 302.</num><sidenote><p class="indent0 firstIndent0 fontsize8">Busing.</p></sidenote> <content class="inline">None of the funds contained in this Act shall be used to require, directly or indirectly, the transportation of any student to a school other than the school which is nearest the student’s home, except for a student requiring special education, to the school offering such special education, in order to comply with title VI of the Civil Rights Act of 1964. For the purpose of this section an indirect requirement of transportation of students includes the transportation of students to carry out a plan involving the reorganization of the grade structure of schools, the pairing of schools, or the clustering of schools, or any combination of grade restructuring, pairing or clustering. The prohibition described in this section does not include the establishment of magnet schools.<page identifier="/us/stat/111/1505">111 STAT. 1505</page></content> </section> <section> <num value="303"><inline class="smallCaps">Sec</inline>. 303.</num> <content class="inline">No funds appropriated under this Act may be used<sidenote><p class="indent0 firstIndent0 fontsize8">School prayer.</p></sidenote> to prevent the implementation of programs of voluntary prayer and meditation in the public schools.</content> </section> <level> <heading class="centered">(<inline class="smallCaps">transfer of funds</inline>)</heading> <section> <num value="304"><inline class="smallCaps">Sec</inline>. 304.</num> <content class="inline">Not to exceed 1 percent of any discretionary funds (pursuant to the Balanced Budget and Emergency Deficit Control Act, as amended) which are appropriated for the Department of Education in this Act may be transferred between appropriations, but no such appropriation shall be increased by more than 3 percent by any such transfer: <proviso><i>Provided,</i> That the Appropriations Committees<sidenote><p class="indent0 firstIndent0 fontsize8">Notification.</p></sidenote> of both Houses of Congress are notified at least fifteen days in advance of any transfer.</proviso></content> </section> <section> <num value="305"><inline class="smallCaps">Sec</inline>. 305.</num> <subsection class="inline"><num value="a">(a)</num> <content>Notwithstanding any other provision of Federal law, no funds provided to the Department of Education or to an applicable program (as defined in section 400(c)(1) of the General Education Provisions Act (20 U.S.C. 1221(c)(1)), in this Act or in any other Act in fiscal year 1998, may be used to field test, pilot test, implement, administer or distribute in any way, any national tests.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Exception</inline>.—</heading><content>Subsection (a) shall not apply to the Third International Math and Science Study or the National Assessment of Educational Progress.</content> </subsection> </section> <section> <num value="306"><inline class="smallCaps">Sec</inline>. 306.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Study</inline>.—</heading><content>The National Academy of Sciences, in consultation with the National Governors Association, the National Conference of State Legislatures, the White House, the National Assessment Governing Board, and the Congress, shall conduct a feasibility study to determine if an equivalency scale can be developed that would allow test scores from commercially available standardized tests and State assessments to be compared with each other and the National Assessment of Educational Progress.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Report of Findings to Congress</inline>.—</heading><paragraph class="inline"><num value="1">(1)</num> <content>The National Academy of Sciences shall submit a written report to the White House, the Committee on Education and the Workforce of the House of Representatives, the Committee on Labor and Human Resources of the Senate, and the Committees on Appropriations of the House of Representatives and the Senate not later than September 1, 1998.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num> <content>The National Academy of Sciences shall submit an interim report no later than June 15, 1998.</content></paragraph> </subsection> </section> </level> <level> <heading class="centered"><inline class="smallCaps">National Assessment Governing Board</inline></heading> <section> <num value="307"><inline class="smallCaps">Sec</inline>. 307</num> <subsection class="inline"><num value="a">(a).</num> <content>Notwithstanding any other provision of law, the exclusive authority over all policies, direction, and guidelines for developing voluntary national tests pursuant to contract RJ97153001 previously entered into between the Department of Education and the American Institutes for Research and executed on August 15, 1997, shall be vested in the National Assessment Governing Board established under section 412 of the National Education Statistics Act of 1994 (20 U.S.C. 9011); <proviso><i>Provided,</i> That within 90 days after the date of enactment of this Act, the Board shall review the national test development contract in effect on the date of enactment of this Act, and modify the contract as the Board determines necessary and not inconsistent with this Act or applicable laws:</proviso> <proviso><i>Provided further,</i> That if the contract cannot be modified to the extent determined necessary by the Board, the <page identifier="/us/stat/111/1506">111 STAT. 1506</page>contract shall be terminated and the Board shall negotiate a new contract, under the Board’s exclusive control, for the tests, not inconsistent with this Act or applicable laws.</proviso></content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <chapeau>In carrying out its exclusive authority for developing voluntary national tests pursuant to contract RJ97153001, any subsequent contract related thereto, or any contract modification pursuant to subsection (a), the National Assessment Governing Board shall determine—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>the extent to which test items selected for use on the tests are free from racial, cultural or gender bias;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>whether the test development process and test items adequately assess student reading and mathematics comprehension in the form most likely to yield accurate information regarding student achievement in reading and mathematics;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>whether the test development process and test items take into account the needs of disadvantaged, limited English proficient and disabled students; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>whether the test development process takes into account how parents, guardians, and students will appropriately be informed about testing content, purpose and uses.</content></paragraph> </subsection> </section> <section> <num value="308"><inline class="smallCaps">Sec</inline>. 308.</num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> <heading><inline class="smallCaps">Study</inline>.—</heading><chapeau>The National Academy of Sciences shall, not later than September 1, 1998, submit a written report to the Committee on Education and the Workforce of the House of Representatives, the Committee on Labor and Human Resources of the Senate, and the Committees on Appropriations of the House and Senate that evaluates all test items developed or funded by the Department of Education or any other agency of the Federal Government pursuant to contract RJ97153001, any subsequent contract related thereto, or any contract modification by the National Assessment Governing Board pursuant to section 307 of this Act, for—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>the technical quality of any test items for 4th grade reading and 8th grade mathematics;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>the validity, reliability, and adequacy of developed test items;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>the validity of any developed design which links test results to student performance;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>the degree to which any developed test items provide valid and useful information to the public;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>whether the test items are free from racial, cultural, or gender bias;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>whether the test items address the needs of disadvantaged, limited English proficient and disabled students; and (7) whether the test items can be used for tracking, graduation or promotion of students.</content></paragraph> </section> <section> <num value="309"><inline class="smallCaps">Sec</inline>. 309.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Study</inline>.—</heading><chapeau>The National Academy of Sciences shall conduct a study and make written recommendations on appropriate methods, practices, and safeguards to ensure that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>existing and new tests that are used to assess student performance are not used in a discriminatory manner or inappropriately for student promotion, tracking or graduation; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>existing and new tests adequately assess student reading and mathematics comprehension in the form most likely to yield accurate information regarding student achievement of reading and mathematics skills.<page identifier="/us/stat/111/1507">111 STAT. 1507</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Report to Congress</inline>.—</heading><content>The National Academy of Sciences shall submit a written report to the White House, the National Assessment Governing Board, the Committee on Education and the Workforce of the House of Representatives, the Committee on Labor and Human Resources of the Senate, and the Committees on Appropriations of the House and Senate not later than September 1, 1998.</content> </subsection> </section> <section> <num value="310"><inline class="smallCaps">Sec</inline>. 310.</num> <subsection class="inline"><num value="a">(a)</num> <content>The Federal Government shall not require any State or local educational agency or school to administer or implement any pilot or field test in any subject or grade, nor shall the Federal Government require any student to take any national test in any subject or grade.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>Nothing in section 309(a) shall be construed as affecting the National Assessment of Educational Progress or the Third International Math and Science Study.</content> </subsection> </section> <section> <num value="311"><inline class="smallCaps">Sec</inline>. 311.</num> <content class="inline">No Federal, State or local educational agency may require any private or parochial school student, or home-schooled individual, to take any pilot or field test developed under this Act, contract RJ97153001, or any contract related thereto, without the written consent of the parents or legal guardians of the student or individual.</content> </section> <section> <num value="312"><inline class="smallCaps">Sec</inline>. 312.</num> <content class="inline">Notwithstanding any other provision of law, any institution of higher education which receives funds under title HI of the Higher Education Act, except for grants made under section 326, may use up to 20 percent of its award under part A or part B of the Act for endowment building purposes authorized under section 331. Any institution seeking to use part A or part B funds for endowment building purposes shall indicate such intention in its application to the Secretary and shall abide by departmental regulations governing the endowment challenge grant program.</content> </section> </level> <level> <heading class="centered">(<inline class="smallCaps">transfer of funds</inline>)</heading> <section> <num value="313"><inline class="smallCaps">Sec</inline>. 313.</num> <content class="inline">Notwithstanding any other provision of the Higher Education Act, $280,000,000 of the balances of returned reserves, formerly held by the Higher Education Assistance Foundation, that are currently held in Higher Education Assistance Claims Reserves, Treasury account number 91X6192, shall be transferred to Miscellaneous Receipts of the Treasury, within 60 days of enactment of this Act.</content> </section> </level> <level> <heading class="centered"><inline class="smallCaps">impact aid</inline></heading> <section> <num value="314"><inline class="smallCaps">Sec</inline>. 314.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>From funds made available to carry out section 3(d)(2)(B) of the Act of September 30, 1950 (Public Law 874, 81st Congress) for fiscal year 1994 that remain after making 100 percent of the payments local educational agencies are eligible to receive under such section for such fiscal year, the Secretary of Education shall make payments to applicants for fiscal year 1996 pursuant to subsection (b).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Award Basis</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in paragraph (2), the Secretary of Education shall make a payment to each applicant in an amount that bears the same relation to the total amount of remaining funds described in subsection (a) as the number of children who were in average daily attendance in the schools served by the applicant for fiscal year 1996 bears to the total <page identifier="/us/stat/111/1508">111 STAT. 1508</page>number of all such children in the schools served by all applicants for such year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Special rule</inline>.—</heading><content>Any applicant that had less than 200 children in average daily attendance in the schools served by the applicant for fiscal year 1996 shall receive a payment under this section for fiscal year 1996 in an amount equal to not less than $175,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Data</inline>.—</heading><chapeau>For purposes of computing payments under this section, the Secretary of Education shall use data that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>was included in each applicant’s application for assistance under section 8003 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7703) for fiscal year 1996; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>is verified by the Secretary.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Definition of Applicant</inline>.—</heading><chapeau>For purposes of this section, the term “applicant” means an applicant for assistance under section 8003 of the Elementary and Secondary Education Act of 1965 for fiscal year 1996 having 1 of the following applicant numbers for such year:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>51–0904.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>51–4203.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>51–1903.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>51–0010.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>51–0811.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6)</num> <content>51–2101.</content></paragraph> </subsection> </section> <section> <num value="315"><inline class="smallCaps">Sec</inline>. 315.</num> <content>Section 10304 of the Elementary and Secondary Education<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s8064">20 USC 8064</ref>.</p></sidenote> Act of 1965 is amended by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Tribally Controlled Schools</inline>.—</heading><chapeau>Each State that receives a grant under this part and designates a tribally controlled school as a charter school shall not consider payments to a school under the Tribally Controlled Schools Act or 1988 (25 U.S.C. 2507) in determining—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the eligibility of the school to receive any other Federal, State, or local aid; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the amount of such aid.”</content></paragraph> </subsection> </quotedContent> <p class="indent0 fontsize10">This title may be cited as the “Department of Education Appropriations Act, 1998”.</p> </content></section> </level> </level> <num value="IV">TITLE IV—</num><heading>RELATED AGENCIES</heading> <appropriations level="intermediate"> <heading>Armed Forces Retirement Home</heading> <content>For expenses necessary for the Armed Forces Retirement Home to operate and maintain the United States Soldiers’ and Airmen’s Home and the United States Naval Home, to be paid from funds available in the Armed Forces Retirement Home Trust Fund, $68,669,000, of which $13,217,000 shall remain available until expended for construction and renovation of the physical plants at the United States Soldiers’ and Airmen’s Home and the United States Naval Home: <proviso><i>Provided,</i> That, notwithstanding any other provision of law, a single contract or related contracts for the development and construction at the United States Soldiers’ and Airmen’s Home, to include renovation of the Sheridan building, may be employed which collectively include the full scope of the project:</proviso> <proviso><i>Provided further,</i> That the solicitation and contract shall contain the clause “availability of funds” found at 48 CFR 52.23218 and 252.232–7007 Limitation of Government Obligation.</proviso><page identifier="/us/stat/111/1509">111 STAT. 1509</page></content> </appropriations> <appropriations level="intermediate"> <heading>Corporation for National and Community Service</heading> <appropriations level="small"> <heading>domestic volunteer service programs, operating expenses</heading> <content>For expenses necessary for the Corporation for National and Community Service to carry out the provisions of the Domestic Volunteer Service Act of 1973, as amended, $256,604,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Corporation for Public Broadcasting</heading> <content>For payment to the Corporation for Public Broadcasting, as authorized by the Communications Act of 1934, an amount which shall be available within limitations specified by that Act, for the fiscal year 2000, $300,000,000: <proviso><i>Provided,</i> That no funds made available to the Corporation for Public Broadcasting by this Act shall be used to pay for receptions, parties, or similar forms of entertainment for Government officials or employees:</proviso> <proviso><i>Provided further,</i> That none of the funds contained in this paragraph shall be available or used to aid or support any program or activity from which any person is excluded, or is denied benefits, or is discriminated against, on the basis of race, color, national origin, religion, or sex.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Federal Mediation and Conciliation Service salaries and expenses</heading> <content>For expenses necessary for the Federal Mediation and Conciliation Service to carry out the functions vested in it by the Labor Management Relations Act, 1947 (29 U.S.C. 171–180, 182–183), including hire of passenger motor vehicles; and for expenses necessary for the Labor-Management Cooperation Act of 1978 (29 U.S.C. 175a); and for expenses necessary for the Service to carry out the functions vested in it by the Civil Service Reform Act, Public Law 95–454 (5 U.S.C. ch. 71), $33,481,000, including $1,500,000, to remain available through September 30, 1999, for activities authorized by the Labor-Management Cooperation Act of 1978 (29 U.S.C. 175a): <proviso><i>Provided,</i> That notwithstanding 31 U.S.C. 3302, fees charged, up to full-cost recovery, for special training activities and for arbitration services shall be credited to and merged with this account, and shall remain available until expended:</proviso> <proviso><i>Provided further,</i> That fees for arbitration services shall be available only for education, training, and professional development of the agency workforce:</proviso> <proviso><i>Provided further,</i> That the Director of the Service is authorized to accept on behalf of the United States gifts of services and real, personal, or other property in the aid of any projects or functions within the Director’s jurisdiction.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Federal Mine Safety and Health Review Commission</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For expenses necessary for the Federal Mine Safety and Health Review Commission (30 U.S.C. 801 et seq.), $6,060,000.<page identifier="/us/stat/111/1510">111 STAT. 1510</page></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Commission on Libraries and Information Science</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses for the National Commission on Libraries and Information Science, established by the Act of July 20, 1970 (Public Law 91–345, as amended by Public Law 102–95), $1,000,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Council on Disability</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For expenses necessary for the National Council on Disability as authorized by title IV of the Rehabilitation Act of 1973, as amended, $1,793,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Education Goals Panel</heading> <content>For expenses necessary for the National Education Goals Panel, as authorized by title II, part A of the Goals 2000: Educate America Act, $2,000,000.</content> </appropriations> <appropriations level="intermediate"> <heading>National Labor Relations Board</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For expenses necessary for the National Labor Relations Board to carry out the functions vested in it by the Labor-Management Relations Act, 1947, as amended (29 U.S.C. 141–167), and other laws, $174,661,000: <proviso><i>Provided,</i> That no part of this appropriation shall be available to organize or assist in organizing agricultural laborers or used in connection with investigations, hearings, directives, or orders concerning bargaining units composed of agricultural laborers as referred to in section 2(3) of the Act of July 5, 1935 (29 U.S.C. 152), and as amended by the Labor-Management Relations Act, 1947, as amended, and as defined in section 3(f) of the Act of June 25, 1938 (29 U.S.C. 203), and including in said definition employees engaged in the maintenance and operation of ditches, canals, reservoirs, and waterways when maintained or operated on a mutual, nonprofit basis and at least 95 percent of the water stored or supplied thereby is used for farming purposes:</proviso> <proviso><i>Provided further,</i> That none of the funds made available by this Act shall be used in any way to promulgate a final rule (altering 29 CFR part 103) regarding single location bargaining units in representation cases.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Mediation Board</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For expenses necessary to carry out the provisions of the Railway Labor Act, as amended (45 U.S.C. 151–188), including emergency boards appointed by the President, $8,600,000: <proviso><i>Provided,</i> That unobligated balances at the end of fiscal year 1998 not needed for emergency boards shall remain available for other statutory purposes through September 30, 1999.</proviso><page identifier="/us/stat/111/1511">111 STAT. 1511</page></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Occupational Safety and Health Review Commission</heading> <appropriations level="intermediate"> <heading>salaries and expenses</heading> <content>For expenses necessary for the Occupational Safety and Health Review Commission (29 U.S.C. 661), $7,900,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Medicare Payment Advisory Commission</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For expenses necessary to carry out section 1805 of the Social Security Act, $7,015,000, to be transferred to this appropriation from the Federal Hospital Insurance and the Federal Supplementary Medical Insurance Trust Funds.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Railroad Retirement Board</heading> <appropriations level="small"> <heading>dual benefits payments account</heading> <content>For payment to the Dual Benefits Payments Account, authorized under section 15(d) of the Railroad Retirement Act of 1974, $205,500,000, which shall include amounts becoming available in fiscal year 1998 pursuant to section 224(c)(1)(B) of Public Law 98–76; and in addition, an amount, not to exceed 2 percent of the amount provided herein, shall be available proportional to the amount by which the product of recipients and the average benefit received exceeds $205,500,000: <proviso><i>Provided,</i> That the total amount provided herein shall be credited in 12 approximately equal amounts on the first day of each month in the fiscal year.</proviso></content> </appropriations> <appropriations level="small"> <heading>federal payments to the railroad retirement accounts</heading> <content>For payment to the accounts established in the Treasury for the payment of benefits under the Railroad Retirement Act for interest earned on unnegotiated checks, $50,000, to remain available through September 30, 1999, which shall be the maximum amount available for payment pursuant to section 417 of Public Law 98–76.</content> </appropriations> <appropriations level="small"> <heading>limitation on administration</heading> <content>For necessary expenses for the Railroad Retirement Board for administration of the Railroad Retirement Act and the Railroad Unemployment Insurance Act, $87,228,000, to be derived in such amounts as determined by the Board from the railroad retirement accounts and from moneys credited to the railroad unemployment insurance administration fund.</content> </appropriations> <appropriations level="small"> <heading>limitation on the office of inspector general</heading> <content>For expenses necessary for the Office of Inspector General for audit, investigatory and review activities, as authorized by the Inspector General Act of 1978, as amended, not more than $5,794,000, to be derived from the railroad retirement accounts and railroad unemployment insurance account: <proviso><i>Provided,</i> That none of the funds made available in any other paragraph of this Act may be transferred to the Office; used to carry out any such transfer; <page identifier="/us/stat/111/1512">111 STAT. 1512</page>used to provide any office space, equipment, office supplies, communications facilities or services, maintenance services, or administrative services for the Office; used to pay any salary, benefit, or award for any personnel of the Office; used to pay any other operating expense of the Office; or used to reimburse the Office for any service provided, or expense incurred, by the Office:</proviso> <proviso><i>Provided further,</i> That none of the funds made available in this paragraph may be used for any audit, investigation, or review of the Medicare Program.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Social Security Administration</heading> <appropriations level="small"> <heading>payments to social security trust funds</heading> <content>For payment to the Federal Old-Age and Survivors Insurance and the Federal Disability Insurance trust funds, as provided under sections 201(m), 228(g), and 1131(b)(2) of the Social Security Act, $20,308,000.</content> </appropriations> <appropriations level="small"> <heading>special benefits for disabled coal miners</heading> <content><p class="indent0 fontsize10">For carrying out title IV of the Federal Mine Safety and Health Act of 1977, $426,090,000, to remain available until expended.</p> <p class="indent0 fontsize10">For making, after July 31 of the current fiscal year, benefit payments to individuals under title IV of the Federal Mine Safety and Health Act of 1977, for costs incurred in the current fiscal year, such amounts as may be necessary.</p> <p class="indent0 fontsize10">For making benefit payments under title IV of the Federal Mine Safety and Health Act of 1977 for the first quarter of fiscal year 1999, $160,000,000, to remain available until expended.</p> </content></appropriations> <appropriations level="small"> <heading>supplemental security income program</heading> <content><p class="indent0 fontsize10">For carrying out titles XI and XVI of the Social Security Act, section 401 of Public Law 92–603, section 212 of Public Law 9366, as amended, and section 405 of Public Law 95–216, including payment to the Social Security trust funds for administrative expenses incurred pursuant to section 201(g)(1) of the Social Security Act, $16,160,000,000, to remain available until expended: <proviso><i>Provided,</i> That any portion of the funds provided to a State in the current fiscal year and not obligated by the State during that year shall be returned to the Treasury.</proviso></p> <p class="indent0 fontsize10">From funds provided under the previous paragraph, not less than $100,000,000 shall be available for payment to the Social Security trust funds for administrative expenses for conducting continuing disability reviews.</p> <p class="indent0 fontsize10">In addition, $175,000,000, to remain available until September 30, 1999, for payment to the Social Security trust funds for administrative expenses for continuing disability reviews as authorized by section 103 of Public Law 104–121 and Supplemental Security Income administrative work as authorized by Public Law 104193. The term “continuing disability reviews” means reviews and redeterminations as defined under section 201(g)(1)(A) of the Social Security Act, as amended, and reviews and redeterminations authorized under section 211 of Public Law 104–193.</p> <p class="indent0 fontsize10">For making, after June 15 of the current fiscal year, benefit payments to individuals under title XVI of the Social Security <page identifier="/us/stat/111/1513">111 STAT. 1513</page>Act, for unanticipated costs incurred for the current fiscal year, such sums as may be necessary.</p> <p class="indent0 fontsize10">For making benefit payments under title XVI of the Social Security Act for the first quarter of fiscal year 1999, $8,680,000,000, to remain available until expended.</p> </content></appropriations> <appropriations level="small"> <heading>limitation on administrative expenses</heading> <content><p class="indent0 fontsize10">For necessary expenses, including the hire of two passenger motor vehicles, and not to exceed $10,000 for official reception and representation expenses, not more than $5,894,040,000 may be expended, as authorized by section 201(g)(1) of the Social Security Act, from any one or all of the trust funds referred to therein: <proviso><i>Provided,</i> That not less than $1,600,000 shall be for the Social Security Advisory Board:</proviso> <proviso><i>Provided further,</i> That unobligated balances at the end of fiscal year 1998 not needed for fiscal year 1998 shall remain available until expended for a state-of-the-art computing network, including related equipment and non-payroll administrative expenses associated solely with this network:</proviso> <proviso><i>Provided further,</i> That reimbursement to the trust funds under this heading for expenditures for official time for employees of the Social Security Administration pursuant to section 7131 of title 5, United States Code, and for facilities or support services for labor organizations pursuant to policies, regulations, or procedures referred to in section 7135(b) of such title shall be made by the Secretary of the Treasury, with interest, from amounts in the general fund not otherwise appropriated, as soon as possible after such expenditures are made.</proviso></p> <p class="indent0 fontsize10">From funds provided under the previous paragraph, notwithstanding the provision under this heading in Public Law 104208 regarding unobligated balances at the end of fiscal year 1997 not needed for such fiscal year, an amount not to exceed $50,000,006 from such unobligated balances shall, in addition to funding already available under this heading for fiscal year 1998, be available for necessary expenses.</p> <p class="indent0 fontsize10">From funds provided under the first paragraph, not less than $200,000,000 shall be available for conducting continuing disability reviews.</p> <p class="indent0 fontsize10">In addition to funding already available under this heading, and subject to the same terms and conditions, $290,000,000, to remain available until September 30, 1999, for continuing disability reviews as authorized by section 103 of Public Law 104–121, section 10203 of Public Law 105–33 and Supplemental Security Income administrative work as authorized by Public Law 104–193. The term “continuing disability reviews” means reviews and redeterminations as defined under section 201(g)(1)(A) of the Social Security Act as amended, and reviews and redeterminations authorized under section 211 of Public Law 104–193.</p> <p class="indent0 fontsize10">In addition to funding already available under this heading, and subject to the same terms and conditions, $190,000,000, which shall remain available until expended, to invest in a state-of-the-art computing network, including related equipment and non-payroll administrative expenses associated solely with this network, for the Social Security Administration and the State Disability Determination Services, may be expended from any or all of the trust funds as authorized by section 201(g)(1) of the Social Security Act.<page identifier="/us/stat/111/1514">111 STAT. 1514</page></p> <p class="indent0 fontsize10">In addition, $35,000,000 to be derived from administration fees in excess of $5.00 per supplementary payment collected pursuant to section 1616(d) of the Social Security Act or section 212(b)(3) of Public Law 93–66, which shall remain available until expended. To the extent that the amounts collected pursuant to such section 1616(d) or 212(b)(3) in fiscal year 1998 exceed $35,000,000, the amounts shall be available in fiscal year 1999 only to the extent provided in advance in appropriations Acts.</p> </content></appropriations> <appropriations level="small"> <heading>office of inspector general</heading> <subheading>(including transfer of funds)</subheading> <content><p class="indent0 fontsize10">For expenses necessary for the Office of Inspector General in carrying out the provisions of the Inspector General Act of 1978, as amended, $10,164,000, together with not to exceed $38,260,000, to be transferred and expended as authorized by section 201(g)(1) of the Social Security Act from the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund.</p> <p class="indent0 fontsize10">In addition, an amount not to exceed 3 percent of the total provided in this appropriation may be transferred from the “Limitation on Administrative Expenses”, Social Security Administration, to be merged with this account, to be available for the time and <sidenote><p class="indent0 firstIndent0 fontsize8">Notification.</p></sidenote>purposes for which this account is available: <proviso><i>Provided,</i> That notice of such transfers shall be transmitted promptly to the Committees on Appropriations of the House and Senate.</proviso></p> </content></appropriations> </appropriations> <appropriations level="intermediate"> <heading>United States Institute of Peace</heading> <appropriations level="small"> <heading>operating expenses</heading> <content>For necessary expenses of the United States Institute of Peace as authorized in the United States Institute of Peace Act, $11,160,000.</content> </appropriations> </appropriations> <num value="V">TITLE V—</num><heading>GENERAL PROVISIONS</heading> <section> <num value="501"><inline class="smallCaps">Sec</inline>. 501.</num> <content class="inline">The Secretaries of Labor, Health and Human Services, and Education are authorized to transfer unexpended balances of prior appropriations to accounts corresponding to current appropriations provided in this Act: <proviso><i>Provided,</i> That such transferred balances are used for the same purpose, and for the same periods of time, for which they were originally appropriated.</proviso></content> </section> <section> <num value="502"><inline class="smallCaps">Sec</inline>. 502.</num> <content class="inline">No part of any appropriation contained in this Act shall remain available for obligation beyond the current fiscal year unless expressly so provided herein.</content> </section> <section> <num value="503"><inline class="smallCaps">Sec</inline>. 503.</num> <num value="a">(a)</num> <subsection class="inline"><content>No part of any appropriation contained in this Act shall be used, other than for normal and recognized executive-legislative relationships, for publicity or propaganda purposes for the preparation, distribution, or use of any kit, pamphlet, booklet, publication, radio, television, or video presentation designed to support or defeat legislation pending before the Congress or any State legislature, except in presentation to the Congress or any State legislature itself.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>No part of any appropriation contained in this Act shall be used to pay the salary or expenses of any grant or contract recipient, or agent acting for such recipient, related to any activity <page identifier="/us/stat/111/1515">111 STAT. 1515</page>designed to influence legislation or appropriations pending before the Congress or any State legislature.</content> </subsection> </section> <section> <num value="504"><inline class="smallCaps">Sec</inline>. 504.</num> <content class="inline">The Secretaries of Labor and Education are each authorized to make available not to exceed $15,000 from funds available for salaries and expenses under titles I and III, respectively, for official reception and representation expenses; the Director of the Federal Mediation and Conciliation Service is authorized to make available for official reception and representation expenses not to exceed $2,500 from the funds available for “Salaries and expenses, Federal Mediation and Conciliation Service”; and the Chairman of the National Mediation Board is authorized to make available for official reception and representation expenses not to exceed $2,500 from funds available for “Salaries and expenses, National Mediation Board”.</content> </section> <section> <num value="505"><inline class="smallCaps">Sec</inline>. 505.</num> <content class="inline">Notwithstanding any other provision of this Act, no funds appropriated under this Act shall be used to carry out any program of distributing sterile needles or syringes for the hypodermic injection of any illegal drug.</content> </section> <section> <num value="506"><inline class="smallCaps">Sec</inline>. 506.</num> <chapeau>Section 505 is subject to the condition that after<sidenote><p class="indent0 firstIndent0 fontsize8">HIV.</p></sidenote> March 31, 1998, a program for exchanging such needles and syringes for used hypodermic needles and syringes (referred to in this section as an “exchange project”) may be carried out in a community if—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>the Secretary of Health and Human Services determines that exchange projects are effective in preventing the spread of HIV and do not encourage the use of illegal drugs; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>the project is operated in accordance with criteria established by such Secretary for preventing the spread of HIV and for ensuring that the project does not encourage the use of illegal drugs.</content></paragraph> </section> <section> <num value="507"><inline class="smallCaps">Sec</inline>. 507.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Purchase of American-Made Equipment and Products</inline>.—</heading><content class="inline">It is the sense of the Congress that, to the greatest extent practicable, all equipment and products purchased with funds made available in this Act should be American-made.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Notice Requirement</inline>.—</heading><content>In providing financial assistance to, or entering into any contract with, any entity using funds made available in this Act, the head of each Federal agency, to the greatest extent practicable, shall provide to such entity a notice describing the statement made in subsection (a) by the Congress.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Prohibition of Contracts With Persons Falsely Labeling Products as Made in America</inline>.—</heading><content>If it has been finally determined by a court or Federal agency that any person intentionally affixed a label bearing a “Made in America” inscription, or any inscription with the same meaning, to any product sold in or shipped to the United States that is not made in the United States, the person shall be ineligible to receive any contract or subcontract made with funds made available in this Act, pursuant to the debarment, suspension, and ineligibility procedures described in sections 9.400 through 9.409 of title 48, Code of Federal Regulations.</content> </subsection> </section> <section> <num value="508"><inline class="smallCaps">Sec</inline>. 508.</num> <content class="inline">When issuing statements, press releases, requests for proposals, bid solicitations and other documents describing projects or programs funded in whole or in part with Federal money, all grantees receiving Federal funds included in this Act, including but not limited to State and local governments and recipients of Federal research grants, shall clearly state: (1) the percentage of the total costs of the program or project which will be financed with Federal money; (2) the dollar amount of Federal <page identifier="/us/stat/111/1516">111 STAT. 1516</page>funds for the project or program; and (3) percentage and dollar amount of the total costs of the project or program that will be financed by nongovernmental sources.</content> </section> <section> <num value="509"><inline class="smallCaps">Sec</inline>. 509.</num><sidenote><p class="indent0 firstIndent0 fontsize8">Abortion.</p></sidenote> <subsection class="inline"><num value="a">(a)</num> <content>None of the funds appropriated under this Act shall be expended for any abortion.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>None of the funds appropriated under this Act shall be expended for health benefits coverage that includes coverage of abortion.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <content>The term “health benefits coverage” means the package of services covered by a managed care provider or organization pursuant to a contract or other arrangement.</content> </subsection> </section> <section> <num value="510"><inline class="smallCaps">Sec</inline>. 510.</num><sidenote><p class="indent0 firstIndent0 fontsize8">Abortion.</p></sidenote> <subsection class="inline"><num value="a">(a)</num> <chapeau>The limitations established in the preceding section shall not apply to an abortion—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>if the pregnancy is the result of an act of rape or incest; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in the case where a woman suffers from a physical disorder, physical injury, or physical illness, including a life-endangering physical condition caused by or arising from the pregnancy itself, that would, as certified by a physician, place the woman in danger of death unless an abortion is performed.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>Nothing in the preceding section shall be construed as prohibiting the expenditure by a State, locality, entity, or private person of State, local, or private funds (other than a State’s or locality’s contribution of Medicaid matching funds).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <content>Nothing in the preceding section shall be construed as restricting the ability of any managed care provider from offering abortion coverage or the ability of a State or locality to contract separately with such a provider for such coverage with State funds (other than a State’s or locality’s contribution of Medicaid matching funds).</content> </subsection> </section> <subsection class="indent0 fontsize10"> <num value="511"><inline class="smallCaps">Sec</inline>. 511.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t31/s1301">31 USC 1301 note</ref>.</p></sidenote> <chapeau class="inline">Notwithstanding any other provision of law—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>no amount may be transferred from an appropriation account for the Departments of Labor, Health and Human Services, and Education except as authorized in this or any subsequent appropriation Act, or in the Act establishing the program or activity for which funds are contained in this Act;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>no department, agency, or other entity, other than the one responsible for administering the program or activity for which an appropriation is made in this Act, may exercise authority for the timing of the obligation and expenditure of such appropriation, or for the purpose for which it is obligated and expended, except to the extent and in the manner otherwise provided in sections 1512 and 1513 of title 31, United States Code; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>no funds provided under this Act shall be available for the salary (or any part thereof) of an employee who is reassigned on a temporary detail basis to another position in the employing agency or department or in any other agency or department, unless the detail is independently approved by the head of the employing department or agency.</content></paragraph> </subsection> <section> <num value="512"><inline class="smallCaps">Sec</inline>. 512.</num> <content class="inline">None of the funds made available in this Act may be used to enforce the requirements of section 428(b)(1)(U)(iii) of the Higher Education Act of 1965 with respect to any lender when it is made known to the Federal official having authority to obligate or expend such funds that the lender has a loan portfolio under part B of title IV of such Act that is equal to or less than $5,000,000.<page identifier="/us/stat/111/1517">111 STAT. 1517</page></content> </section> <section> <num value="513"><inline class="smallCaps">Sec</inline>. 513.</num> <subsection class="inline"><num value="a">(a)</num> <chapeau>None of the funds made available in this Act Embryos, may be used for—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>the creation of a human embryo or embryos for research purposes; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>research in which a human embryo or embryos are destroyed, discarded, or knowingly subjected to risk of injury or death greater than that allowed for research on fetuses in utero under 45 CFR 46.208(a)(2) and section 498(b) of the Public Health Service Act (42 U.S.C. 289g(b)).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>For purposes of this section, the term “human embryo or embryos” include any organism, not protected as a human subject under 45 CFR 46 as of the date of the enactment of this Act, that is derived by fertilization, parthenogenesis, cloning, or any other means from one or more human gametes or human diploid cells.</content> </subsection> </section> <section> <num value="514"><inline class="smallCaps">Sec</inline>. 514.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Limitation on Use of Funds for Promotion of Legalization of Controlled Substances</inline>.—</heading><content>None of the funds made available in this Act may be used for any activity when it is made known to the Federal official having authority to obligate or expend such funds that the activity promotes the legalization of any drug or other substance included in schedule I of the schedules of controlled substances established by section 202 of the Controlled Substances Act (21 U.S.C. 812).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Exceptions</inline>.—</heading><content>The limitation in subsection (a) shall not apply when it is made known to the Federal official having authority to obligate or expend such funds that there is significant medical evidence of a therapeutic advantage to the use of such drug or other substance or that federally sponsored clinical trials are being conducted to determine therapeutic advantage.</content> </subsection> </section> <section> <num value="515"><inline class="smallCaps">Sec</inline>. 515.</num> <chapeau class="inline">None of the funds made available in this Act may be obligated or expended to enter into or renew a contract with an entity when it is made known to the Federal official having authority to obligate or expend such funds that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>such entity is otherwise a contractor with the United States and is subject to the requirement in section 4212(d) of title 38, United States Code, regarding submission of an annual report to the Secretary of Labor concerning employment of certain veterans; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>such entity has not submitted a report as required by that section for the most recent year for which such requirement was applicable to such entity.</content></paragraph> </section> <section> <num value="516"><inline class="smallCaps">Sec</inline>. 516.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Fees for Federal Administration of State Supplementary SSI Payments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Optional state supplementary payments</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Section 1616(d)(2)(B) of the Social Security Act (42 U.S.C. 1382e(d)(2)(B)) is amended—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by striking “<quotedText>and</quotedText>” at the end of clause (iii); and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking clause (iv) and inserting the following: <quotedContent> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>for fiscal year 1997, $5.00;</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>for fiscal year 1998, $6.20;</content></clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <content>for fiscal year 1999, $7.60;</content></clause> <clause class="indent3 fontsize10"><num value="vii">“(vii)</num> <content>for fiscal year 2000, $7.80;</content></clause> <clause class="indent3 fontsize10"><num value="viii">“(viii)</num> <content>for fiscal year 2001, $8.10;</content></clause> <clause class="indent3 fontsize10"><num value="ix">“(ix)</num> <content>for fiscal year 2002, $8.50; and</content></clause> <clause class="indent3 fontsize10"><num value="x">“(x)</num> <chapeau>for fiscal year 2003 and each succeeding fiscal year—<page identifier="/us/stat/111/1518">111 STAT. 1518</page></chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the applicable rate in the preceding fiscal year, increased by the percentage, if any, by which the Consumer Price Index for the month of June of the calendar year of the increase exceeds the Consumer Price Index for the month of June of the calendar year preceding the calendar year of the increase, and rounded to the nearest whole cent; or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>such different rate as the Commissioner determines is appropriate for the State.”.</content></subclause> </clause> </quotedContent> </content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Conforming amendment</inline>.—</heading><content>Section 1616(d)(2)(C) of such Act (42 U.S.C. 1382e(d)(2)(C)) is amended by striking “<quotedText>(B)(iv)</quotedText>” and inserting “<quotedText>(B)(x)(II)</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Mandatory state supplementary payments</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Section 212(b)(3)(B)(ii) of Public Law 93–66 (42 U.S.C. 1382 note) is amended—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by striking “<quotedText>and</quotedText>” at the end of subclause (III); and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking subclause (IV) and inserting the following: <quotedContent> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>for fiscal year 1997, $5.00;</content></subclause> <subclause class="indent4 fontsize10"><num value="V">“(V)</num> <content>for fiscal year 1998, $6.20;</content></subclause> <subclause class="indent4 fontsize10"><num value="VI">“(VI)</num> <content>for fiscal year 1999, $7.60;</content></subclause> <subclause class="indent4 fontsize10"><num value="VII">“(VII)</num> <content>for fiscal year 2000, $7.80;</content></subclause> <subclause class="indent4 fontsize10"><num value="VIII">“(VIII)</num> <content>for fiscal year 2001, $8.10;</content></subclause> <subclause class="indent4 fontsize10"><num value="IX">“(IX)</num> <content>for fiscal year 2002, $8.50; and</content></subclause> <subclause class="indent4 fontsize10"><num value="X">“(X)</num> <chapeau>for fiscal year 2003 and each succeeding fiscal year—</chapeau> <item class="indent5 fontsize10"><num value="aa">“(aa)</num> <content>the applicable rate in the preceding fiscal year, increased by the percentage, if any, by which the Consumer Price Index for the month of June of the calendar year of the increase exceeds the Consumer Price Index for the month of June of the calendar year preceding the calendar year of the increase, and rounded to the nearest whole cent; or</content></item> <item class="indent5 fontsize10"><num value="bb">“(bb)</num> <content>such different rate as the Commissioner determines is appropriate for the State.”.</content></item> </subclause> </quotedContent> </content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Conforming amendment</inline>.—</heading><content>Section 212(b)(3)(B)(iii) of such Act (42 U.S.C. 1382 note) is amended by striking “<quotedText>(ii)(IV)</quotedText>” and inserting “<quotedText>(ii)(X)(bb)</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Use of New Fees To Defray the Social Security Administration’s Administrative Expenses</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Credit to special fund for fiscal year 1998 and subsequent years</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">Optional state supplementary payment fees</inline>.—</heading><content>Section 1616(d)(4) of the Social Security Act (42 U.S.C. 1382e(d)(4)) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num><subparagraph class="inline"><num value="A">(A)</num> <content>The first $5 of each administration fee assessed pursuant to paragraph (2), upon collection, shall be deposited in the general fund of the Treasury of the United States as miscellaneous receipts.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B)</num> <content>That portion of each administration fee in excess of $5, and 100 percent of each additional services fee charged pursuant to paragraph (3), upon collection for fiscal year 1998 and each subsequent fiscal year, shall be credited to a special fund established in the Treasury of the United States for State supplementary payment fees. The amounts so credited, to the extent and in the amounts provided in advance in appropriations Acts, shall be available to defray expenses incurred in carrying out this title and related laws.”.<page identifier="/us/stat/111/1519">111 STAT. 1519</page></content></subparagraph> </paragraph> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Mandatory state supplementary payment fees</inline>.—</heading><content>Section 212(b)(3)(D) of Public Law 93–66 (42 U.S.C. 1382 note) is amended to read as follows: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num><clause class="inline"><num value="i">(i)</num> <content>The first $5 of each administration fee assessed pursuant to subparagraph (B), upon collection, shall be deposited in the general fund of the Treasury of the United States as miscellaneous receipts.</content></clause> <clause class="indent2 fontsize10"><num value="ii">“(ii)</num> <content>The portion of each administration fee in excess of $5, and 100 percent of each additional services fee charged pursuant to subparagraph (C), upon collection for fiscal year 1998 and each subsequent fiscal year, shall be credited to a special fund established in the Treasury of the United States for State supplementary payment fees. The amounts so credited, to the extent and in the amounts provided in advance in appropriations Acts, shall be available to defray expenses incurred in carrying out this section and title XVI of the Social Security Act and related laws.”.</content></clause> </subparagraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Limitations on authorization of appropriations</inline>.—</heading><content><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1382e">42 USC 1382e note</ref>.</p></sidenote>From amounts credited pursuant to section 1616(d)(4)(B) of the Social Security Act and section 212(b)(3)(D)(ii) of Public Law 93–66 to the special fund established in the Treasury of the United States for State supplementary payment fees, there is authorized to be appropriated an amount not to exceed $35,000,000 for fiscal year 1998, and such sums as may be necessary for each fiscal year thereafter, for administrative expenses in carrying out the supplemental security income program under title XVI of the Social Security Act and related laws.</content></paragraph> </subsection> </section> <section> <num value="517"><inline class="smallCaps">Sec</inline>. 517.</num> <content class="inline">Section 520(c)(2)(D) of the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 1997, is amended by striking “<quotedText>September<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s5597">5 USC 5597 note</ref>.</p></sidenote> 30, 1997</quotedText>” and inserting in lieu thereof “December 31, 1997”.</content> </section> <section> <num value="518"><inline class="smallCaps">Sec</inline>. 518.</num> <content class="inline">None of the funds made available in this Act may be used to pay the expenses of an election officer appointed by a court to oversee an election of any officer or trustee for the International Brotherhood of Teamsters.</content> </section> <section> <num value="519"><inline class="smallCaps">Sec</inline>. 519.</num> <content class="inline">Subsection (k) of section 9302 of the Balanced Budget Act of 1997, as added by section 1604(f)(3) of the Taxpayer Relief of Act of 1997, is repealed.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s5701">26 USC 5701 note</ref>.</p></sidenote></content> </section> <num value="VI">TITLE VI—</num><heading>OTHER PROVISIONS</heading> <section> <num value="601"><inline class="smallCaps">Sec</inline>. 601.</num> <content class="inline">The amount of the DSH allotment for the State<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396r–4">42 USC 1396r–4</ref> note.</p></sidenote> of Minnesota for fiscal year 1998, specified in the table under section 1923(f)(2) of the Social Security Act (as amended by section 4721(a)(1) of Public Law 105–33) is deemed to be $33,000,000.</content> </section> <section> <num value="602"><inline class="smallCaps">Sec</inline>. 602.</num> <content class="inline">Notwithstanding section 1923(f)(2) of the Social Security<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396r–4">42 USC 1396r–4</ref> note.</p></sidenote> Act (42 U.S.C. 1396r–4(f)(2)) (as amended by section 4721(a)(1) of the Balanced Budget Act of 1997 (Public Law 105–33; 111 Stat. 511)), the amount of the DSH allotment for Wyoming for fiscal year 1998 is deemed to be $67,000.</content> </section> <level> <heading class="centered"><inline class="smallCaps">parkinson’s disease research</inline></heading> <section> <num value="603"><inline class="smallCaps">Sec</inline>. 603.</num> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Short Title</inline>.—</heading><content>This section may be cited as the<sidenote><p class="indent0 firstIndent0 fontsize8">Morris K. Udall Parkinson’s Disease Research Act of 1997.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s201">42 USC 201 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s284f">42 USC 284f note</ref>.</p></sidenote> “Morris K. Udall Parkinson’s Disease Research Act of 1997”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Finding and Purpose</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Finding</inline>.—</heading><content>Congress finds that to take full advantage of the tremendous potential for finding a cure or effective <page identifier="/us/stat/111/1520">111 STAT. 1520</page>treatment, the Federal investment in Parkinson’s disease must be expanded, as well as the coordination strengthened among the National Institutes of Health research institutes.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Purpose</inline>.—</heading><content>It is the purpose of this section to provide for the expansion and coordination of research regarding Parkinson’s disease, and to improve care and assistance for afflicted individuals and their family caregivers.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Parkinson’s Disease Research</inline>.—</heading><content>Part B of title IV of the Public Health Service Act (42 U.S.C. 284 et seq.) is amended by adding at the end the following: <quotedContent> <level> <heading class="centered">“<inline class="smallCaps">parkinson’s disease</inline></heading> <section> <num value="409B">“<inline class="smallCaps">Sec</inline>. 409B.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s284f">42 USC 284f</ref>.</p></sidenote> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>The Director of NIH shall establish a program for the conduct and support of research and training with respect to Parkinson’s disease (subject to the extent of amounts appropriated under subsection (e)).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Inter-Institute Coordination</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Director of NIH shall provide for the coordination of the program established under subsection (a) among all of the national research institutes conducting Parkinson’s disease research.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Conference</inline>.—</heading><content>Coordination under paragraph (1) shall include the convening of a research planning conference not <sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote>less frequently than once every 2 years. Each such conference shall prepare and submit to the Committee on Appropriations and the Committee on Labor and Human Resources of the Senate and the Committee on Appropriations and the Committee on Commerce of the House of Representatives a report concerning the conference.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Morris K. Udall Research Centers</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Director of NIH is authorized to award Core Center Grants to encourage the development of innovative multidisciplinary research and provide training concerning Parkinsons disease. The Director is authorized to award not more than 10 Core Center Grants and designate each center funded under such grants as a Morris K. Udall Center for Research on Parkinson’s Disease.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Requirements</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>With respect to Parkinson’s disease, each center assisted under this subsection shall—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>use the facilities of a single institution or a consortium of cooperating institutions, and meet such qualifications as may be prescribed by the Director of the NIH; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>conduct basic and clinical research.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Discretionary requirements</inline>.—</heading><chapeau>With respect to Parkinson’s disease, each center assisted under this subsection may—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>conduct training programs for scientists and health professionals;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>conduct programs to provide information and continuing education to health professionals;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>conduct programs for the dissemination of information to the public;</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>separately or in collaboration with other centers, establish a nationwide data system derived from patient populations with Parkinson’s disease, and <page identifier="/us/stat/111/1521">111 STAT. 1521</page>where possible, comparing relevant data involving general populations;</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>separately or in collaboration with other centers, establish a Parkinson’s Disease Information Clearinghouse to facilitate and enhance knowledge and understanding of Parkinson’s disease; and</content></clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <content>separately or in collaboration with other centers, establish a national education program that fosters a national focus on Parkinson’s disease and the care of those with Parkinson’s disease.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Stipends regarding training programs</inline>.—</heading><content>A center may use funds provided under paragraph (1) to provide stipends for scientists and health professionals enrolled in training programs under paragraph (2)(B).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Duration of support</inline>.—</heading><content>Support of a center under this subsection may be for a period not exceeding five years. Such period may be extended by the Director of NIH for one or more additional periods of not more than five years if the operations of such center have been reviewed by an appropriate technical and scientific peer review group established by the Director and if such group has recommended to the Director that such period should be extended.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Morris K. Udall Awards for Excellence in Parkinson’s Disease Research</inline>.—</heading><content>The Director of NIH is authorized to establish a grant program to support investigators with a proven record of excellence and innovation in Parkinson’s disease research and who demonstrate potential for significant future breakthroughs in the understanding of the pathogensis, diagnosis, and treatment of Parkinson’s disease. Grants under this subsection shall be available for a period of not to exceed 5 years.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">Authorization of Appropriations</inline>.—</heading><content>For the purpose of carrying out this section and section 301 and title IV of the Public Health Service Act with respect to research focused on Parkinson’s disease, there are authorized to be appropriated up to $100,000,000 for fiscal year 1998, and such sums as may be necessary for each of the fiscal years 1999 and 2000.”.</content> </subsection> </section> </level> </quotedContent> </content></subsection> </section> <section> <num value="604"><inline class="smallCaps">Sec</inline>. 604.</num> <subsection class="inline"><num value="a">(a)</num> <content>Section 414(a) of the Immigration and Nationality Act (8 U.S.C. 1524(a)) is amended by striking “<quotedText>fiscal year 1995, fiscal year 1996, and fiscal year 1997</quotedText>” and inserting “<quotedText>each of fiscal years 1998 and 1999</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>The amendment made by subsection (a) shall take effect<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1524">8 USC 1524 note</ref>.</p></sidenote> October 1, 1997.</content> </subsection> </section> <section> <num value="605"><inline class="smallCaps">Sec</inline>. 605.</num> <content class="inline">Subparagraphs (B) and (C) of section 1143(a)(2) of the Social Security Act (42 U.S.C. 1320b–13(a)(2)(B), (C)) are each amended by striking “<quotedText>employee</quotedText>” and inserting “<quotedText>employer, employee,</quotedText>”.</content> </section> <section> <num value="606"><inline class="smallCaps">Sec</inline>. 606.</num> <subsection class="inline"><num value="a">(a)</num> <content>Notwithstanding any other provision of law, the payments described in subsection (b) shall not be considered income or resources in determining eligibility for, or the amount of benefits under, a program or State plan under title XVI or XIX of the Social Security Act.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>The payments described in this subsection are payments made by the Secretary of Defense pursuant to section 657 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2584).</content> </subsection> </section> <section> <num value="607"><inline class="smallCaps">Sec</inline>. 607.</num> <content class="inline">In addition to amounts otherwise made available for payment of obligations in carrying out 49 U.S.C. 5338(a), <page identifier="/us/stat/111/1522">111 STAT. 1522</page>$50,000,000 shall remain available until expended and to be derived from the Highway Trust Fund: <proviso><i>Provided,</i> That $50,000,000 shall be paid from the Mass Transit Account of the Highway Trust Fund to the Federal Transit Administration’s formula grants account:</proviso> <proviso><i>Provided further,</i> That subsection (c) of section 337 of the Department of Transportation and Related Agencies Appropriations Act, 1998 is amended by inserting after “<quotedText>House and Senate Committees on Appropriations</quotedText>”, the following: “and the Senate Committee on Commerce, Science, and Transportation”.</proviso></content> </section> <section> <num value="608"><inline class="smallCaps">Sec</inline>. 608.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s603">42 USC 603</ref>.</p></sidenote> <content class="inline">Clauses (i)(I) and (ii)(II) of section 403(a)(5)(A) of the Social Security Act are amended by striking “<quotedText>during the fiscal year</quotedText>” in each place it appears and inserting “<quotedText>during the period permitted under subparagraph (C)(vii) of this paragraph for the expenditure of funds under the grant</quotedText>”.</content> </section> </level> <level> <heading class="centered"><inline class="smallCaps">Emergency Student Loan Consolidation</inline></heading> <section> <num value="609"><inline class="smallCaps">Sec</inline>. 609.</num><sidenote><p class="indent0 firstIndent0 fontsize8">Emergency Student Loan Consolidation Act of 1997.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1001">20 USC 1001 note</ref>.</p></sidenote> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Short Title; References</inline>.—</heading><content>This section may be cited as the “Emergency Student Loan Consolidation Act of 1997”. Except as otherwise expressly provided, whenever in this section an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Definition of Loans Eligible for Consolidation</inline>.—</heading><chapeau>Section 428C(a)(4) (20 U.S.C. 1078–3(a)(4)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by redesignating subparagraphs (C) and (D) as subparagraphs (D) and (E), respectively; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting after subparagraph (B) the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>made under part D of this title, except that loans made under such part shall be eligible student loans only for consolidation loans for which the application is received by an eligible lender during the period beginning on the date of enactment of the Emergency Student Loan Consolidation Act of 1997 and ending on October 1, 1998;”.</content></subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Terms of Consolidation Loans</inline>.—</heading><chapeau>Section 428C(b)(4)(C)(ii) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subclause (I), by inserting after “<quotedText>consolidation loan</quotedText>” the following: “for which the application is received by an eligible lender before the date of enactment of the Emergency Student Loan Consolidation Act of 1997, or on or after October 1, 1998,”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<quotedText>or</quotedText>” at the end of subclause (I);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by inserting “<quotedText>or (II)</quotedText>” before the semicolon at the end of subclause (II);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>by redesignating subclause (II) as subclause (III); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>by inserting after subclause (I) the following new subclause: <quotedContent> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>by the Secretary, in the case of a consolidation loan for which the application is received by an eligible lender on or after the date of enactment of the Emergency Student Loan Consolidation Act of 1997 and before October 1, 1998, except that the Secretary shall pay such interest only on that portion of the loan <page identifier="/us/stat/111/1523">111 STAT. 1523</page>that repays Federal Stafford Loans for which the student borrower received an interest subsidy under section 428 or Federal Direct Stafford Loans for which the borrower received an interest subsidy under section 455; or”.</content></subclause> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Nondiscrimination in Loan Consolidation</inline>.—</heading><content>Section 428C(b) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <heading><inline class="smallCaps">Nondiscrimination in Loan Consolidation</inline>.—</heading><chapeau>An eligible lender that makes consolidation loans under this section shall not discriminate against any borrower seeking such a loan—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>based on the number or type of eligible student loans the borrower seeks to consolidate;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>based on the type or category of institution of higher education that the borrower attended;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>based on the interest rate to be charged to the borrower with respect to the consolidation loan; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>with respect to the types of repayment schedules offered to such borrower.”.</content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="e">(e)</num> <heading><inline class="smallCaps">Interest Rate</inline>.—</heading><chapeau>Section 428C(c)(1) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in the first sentence of subparagraph (A), by striking “<quotedText>(B) or (C)</quotedText>” and inserting “<quotedText>(B), (C), or (D)</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>A consolidation loan for which the application is received by an eligible lender on or after the date of enactment of the Emergency Student Loan Consolidation Act of 1997 and before October 1, 1998, shall bear interest at an annual rate on the unpaid principal balance of the loan that is equal to the rate specified in section 427A(f), except that the eligible lender may continue to calculate interest on such a loan at the rate previously in effect and defer, until not later than April 1, 1998, the recalculation of the interest on such a loan at the rate required by this subparagraph if the recalculation is applied retroactively to the date on which the loan is made.”.</content></subparagraph> </quotedContent> </content></paragraph> </subsection> <section> <num value="f">(f)</num> <heading><inline class="smallCaps">Amendments Effective for Pending applicants</inline>.—</heading><content>The<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1078–3">20 USC 1078–3 note</ref>.</p></sidenote> consolidation loans authorized by the amendments made by this section shall be available notwithstanding any pending application by a student for a consolidation loan under part D of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.), upon withdrawal of such application by the student at any time prior to receipt of such a consolidation loan.</content> </section> <subsection class="indent0 fontsize10"> <num value="g">(g)</num> <heading><inline class="smallCaps">Family Contribution for Dependent Students</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Parents’ available income</inline>.—</heading><chapeau>Section 475(c)(1) (20 U.S.C. 1087oo(c)(1)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>and</quotedText>” at the end of subparagraph (D);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking the period at the end of subparagraph (E) and inserting “<quotedText>; and</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by adding at the end of the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>the amount of any tax credit taken by the parents under section 25A of the Internal Revenue Code of 1986.”.</content></subparagraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Student contribution from available income</inline>.—</heading><chapeau>Section 475(g)(2) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>and</quotedText>” at the end of subparagraph (C);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking the period at the end of subparagraph (D) and inserting “<quotedText>; and</quotedText>”; and<page identifier="/us/stat/111/1524">111 STAT. 1524</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by inserting after subparagraph (D) the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>the amount of any tax credit taken by the student under section 25A of the Internal Revenue Code of 1986.”.</content></subparagraph> </quotedContent> </content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h)</num> <heading><inline class="smallCaps">Family Contribution for Independent Students Without Dependents Other Than a Spouse</inline>.—</heading><chapeau>Section 476(b)(1)(A) (20 U.S.C. 1087pp(b)(1)(A)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>and</quotedText>” at the end of clause (iv); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting after clause (v) the following new clause: <quotedContent> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <content>the amount of any tax credit taken under section 25A of the Internal Revenue Code of 1986; and”.</content></clause> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="i">(i)</num> <heading><inline class="smallCaps">Family Contribution for Independent Students With Dependents Other Than a Spouse</inline>.—</heading><chapeau>Section 477(b)(1) (20 U.S.C. 1087qq(b)(1)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>and</quotedText>” at the end of subparagraph (D);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking the period at the end of subparagraph (E) and inserting and”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>the amount of any tax credit taken under section 25A of the Interned Revenue Code of 1986.”.</content></subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="j">(j)</num> <heading><inline class="smallCaps">Total Income</inline>.—</heading><chapeau>Section 480(a)(2) (20 U.S.C. 1087w(a)(2)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>individual, and</quotedText>” and inserting “<quotedText>individual,</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by inserting “<quotedText>and no portion of any tax credit taken under section 25A of the Internal Revenue Code of 1986,</quotedText>” before “shall be included”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="k">(k)</num> <heading><inline class="smallCaps">Other Financial Assistance</inline>.—</heading><content>Section 480(j) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>Notwithstanding paragraph (1), a tax credit taken under section 25A of the Internal Revenue Code of 1986 shall not be treated as estimated financial assistance for purposes of section 471(3).”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="l">(l)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1087h">20 USC 1087h</ref>.</p></sidenote> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 458(a)(1) (20 U.S.C. 1087(a)(1)) is amended by striking “<quotedText>$532,000,000</quotedText>” and inserting “<quotedText>$507,000,000</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="m">(m)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1087h">20 USC 1087h note</ref>.</p></sidenote> <heading><inline class="smallCaps">Construction</inline>.—</heading><content>Nothing in this Act or an amendment made by this Act shall be construed to prohibit the Secretary of Education from using funds that are returned or otherwise recovered by the Secretary under section 422(g) of the Higher Education Act of 1965 (20 U.S.C. 1072(g)) including the balances of returned reserve funds, formerly held by the Higher Education Assistance Foundation, that are currently held in Higher Education Assistance Foundation Claims Reserves, Treasury account number 91X6192, for expenditure for expenses pursuant to section 458 of such Act (20 U.S.C. 1087h).</content> </subsection> </section> </level> <num value="VII">TITLE VII—</num><sidenote><p class="indent0 firstIndent0 fontsize8">National Health Museum Development Act.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s50">20 USC 50 note</ref>.</p></sidenote><heading>NATIONAL HEALTH MUSEUM</heading> <section> <num value="701">SEC. 701.</num> <heading>SHORT TITLE.</heading> <content>This title may be cited as the “National Health Museum Development Act”.</content> </section> <section> <num value="702">SEC. 702.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s50">20 USC 50 note</ref>.</p></sidenote> <heading>AMENDMENTS TO THE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1995.</heading> <chapeau>Section 1067 of the National Defense Authorization Act for Fiscal Year 1995 (10 U.S.C. 176 note) is amended—<page identifier="/us/stat/111/1525">111 STAT. 1525</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in subsection (a)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in paragraph (1), by adding “<quotedText>and</quotedText>” at the end;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in paragraph (2), by striking “<quotedText>; and</quotedText>” and inserting a period; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by striking paragraph (3);</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>in subsection (b)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in the subsection heading, by striking “<quotedText>and Site of Facility</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in paragraph (1), by striking “<quotedText>; and</quotedText>” and inserting a period;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by striking paragraph (2); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>by striking “<quotedText>Pathology—</quotedText>” and all that follows through “shall” in paragraph (1) and inserting “<quotedText>Pathology shall</quotedText>”; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by striking subsections (c) through (e).</content></paragraph> </section> <section> <num value="703">SEC. 703.</num> <heading>NATIONAL HEALTH MUSEUM SITE.</heading><sidenote><p class="indent0 firstIndent0 fontsize8">District of Columbia.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s50">20 USC 50 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Site</inline>.—</heading><content>The facility known as the National Health Museum shall be located on or near the Mall on land owned by the Federal Government or the District of Columbia (or both) in the District of Columbia.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Rule of Construction</inline>.—</heading><content>Nothing in this section shall be construed as limiting the authority or responsibilities of the National Capital Planning Commission or the Commission of Fine Arts.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Definition</inline>.—</heading><chapeau>In this section, the term “the Mall” means—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>the land designated as “Union Square”, United States Reservation 6A; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>the land designated as the “Mall”, United States Reservations 3, 4, 5, and 6.</content></paragraph> </subsection> </section> <section> <num value="704">SEC. 704.</num> <heading>NATIONAL HEALTH MUSEUM COMMISSION.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s50">20 USC 50 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Establishment of Commission</inline>.—</heading><content>There is established a commission to be known as the National Health Museum Commission (hereafter referred to in this title as the “Commission”) that shall be comprised of eight members.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Membership</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The members of the Commission shall be appointed for the life of the Commission as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>Two members shall be appointed by the President.<sidenote><p class="indent0 firstIndent0 fontsize8">President.</p></sidenote></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>Two members shall be appointed by the Speaker of the House of Representatives.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>One member shall be appointed by the Minority Leader of the House of Representatives.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>Two members shall be appointed by the Majority Leader of the Senate.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>One member shall be appointed by the Minority Leader of the Senate.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Persons eligible</inline>.—</heading><content>The members of the Commission shall be individuals who have knowledge or expertise in matters to be studied by the Commission.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Chairperson</inline>.—</heading><content>The President shall designate one member<sidenote><p class="indent0 firstIndent0 fontsize8">President.</p></sidenote> as the Chairperson of the Commission.</content></paragraph> </subsection> </section> <section> <num value="705">SEC. 705.</num> <heading>DUTIES OF THE COMMISSION.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s50">20 USC 50 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Study</inline>.—</heading><content>It shall be the duty of the Commission to conduct a comprehensive study of the appropriate Federal role in the planning and operation of the National Health Museum, as well as <page identifier="/us/stat/111/1526">111 STAT. 1526</page>any other issues deemed appropriate to the development of the National Health Museum.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than 1 year after the date on which the Commission first meets, the Commission shall submit to the President and Congress a comprehensive report of the Commission’s findings and conclusions, together with any recommendations of the Commission.</content> </subsection> </section> <section> <num value="706">SEC. 706.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s50">20 USC 50 note</ref>.</p></sidenote> <heading>COMMISSION ADMINISTRATION MATTERS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Application of FACA</inline>.—</heading><content>The National Health Museum, Inc. shall be responsible for administering all Commission activities in accordance with the Federal Advisory Committee Act (5 U.S.C. App.).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Compensation of Members</inline>.—</heading><content>Each member of the Commission who is not an officer or employee of the Federal Government shall be compensated at a rate equal to the daily equivalent of the annual rate of basic pay prescribed for level IV of the Executive Schedule under section 5315 of title 5, United States Code.</content> </subsection> </section> <section> <num value="707">SEC. 707.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s50">20 USC 50 note</ref>.</p></sidenote> <heading>AUTHORIZATION OF APPROPRIATIONS.</heading> <content>There are authorized to be appropriated to carry out this section, $500,000 for fiscal year 1998, to remain available until expended.</content> </section> <section> <num value="708">SEC. 708.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s50">20 USC 50 note</ref>.</p></sidenote> <heading>TERMINATION OF THE COMMISSION.</heading> <content><p class="indent0 fontsize10">The Commission shall terminate 60 days after the Commission submits the report required under section 705(b).</p> <p class="indent0 fontsize10">This Act may be cited as the “<shortTitle role="act">Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 1998</shortTitle>”.</p> </content></section> Approved November 13, 1997.
LEGISLATIVE HISTORY—H.R. 2264 (S. 1061): HOUSE REPORTS: Nos. 105–205 (Comm. on Appropriations) and 105–390 (Comm. of Conference). SENATE REPORTS: No. 105–58 accompanying S. 1061 (Comm. on Appropriations). CONGRESSIONAL RECORD. Vol. 143 (1997):

Sept. 4, 5, 8–11, 16, 17, considered and passed House.

Sept. 17, considered and passed Senate, amended, in lieu of S. 1061

Nov. 7. House agreed to conference report.

Nov. 8, Senate agreed to conference report.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS. Vol. 33 (1997):

Nov. 13, Presidential remarks and statement.

 Public Law 105–79: To provide for the conveyance of certain land in the Six Rivers National Forest in the State of California for the benefit of the Hoopa Valley Tribe. Public Law79 Public Law 105–79 111 Stat. 1527 1997-11-13 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1527 Public Law105–79 105th Congress
An Act To provide for the conveyance of certain land in the Six Rivers National Forest in the State of California for the benefit of the Hoopa Valley Tribe.

Nov. 13, 1997

[H.R. 79]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Hoopa Valley Reservation South Boundary Adjustment Act.

25 USC 1300i–1 note.
SECTION 1. SHORT TITLE. This Act may be cited as the “Hoopa Valley Reservation South Boundary Adjustment Act”.
SEC. 2. TRANSFER OF LANDS WITHIN SIX RIVERS NATIONAL FOREST FOR HOOPA VALLEY TRIBE.

25 USC 1300i–1 note.

 (a) Transfer.—All right, title, and interest in and to the lands described in subsection (b) shall hereafter be administered by the Secretary of the Interior and be held in trust by the United States for the Hoopa Valley Tribe. The lands are hereby declared part of the Hoopa Valley Reservation. Upon the inclusion of such lands in the Hoopa Valley Reservation, Forest Service system roads numbered 8N03 and 7N51 and the Trinity River access road which is a spur off road numbered 7N51, shall be Indian reservation roads, as defined in section 101(a) of title 23 of the United States Code. (b) Lands Described.—The lands referred to in subsection (a) are those portions of Townships 7 North and 8 North, Ranges 5 East and 6 East, Humboldt Meridian, California, within a boundary beginning at a point on the current south boundary of the Hoopa Valley Indian Reservation, marked and identified as “Post H.V.R. No. 8” on the Plat of the Hoopa Valley Indian Reservation prepared from a field survey conducted by C.T. Bissel, Augustus T. Smith, and C.A. Robinson, Deputy Surveyors, approved by the Surveyor General, H. Pratt, March 18, 1892, and extending from said point on a bearing of north 72 degrees 30 minutes east, until intersecting with a line beginning at a point marked as “Post H.V.R. No. 3” on such survey and extending on a bearing of south 15 degrees 59 minutes east, comprising 2,641 acres more or less. (c) Boundary Adjustment.—The boundary of the Six Rivers National Forest in the State of California is hereby adjusted to exclude the lands to be held in trust for the benefit of the Hoopa Valley Tribe pursuant to this section. (d) Survey.—The Secretary of the Interior, acting through the Bureau of Land Management, shall survey and monument that portion of the boundary of the Hoopa Valley Reservation established by the addition of the lands described in subsection (b).111 STAT. 1528 (e) Settlement of Claims.—The transfer of lands to trust status under this section extinguishes the following claims by the Hoopa Valley Tribe: (1) All claims on land now administered as part of the Six Rivers National Forest based on the allegation of error in establishing the boundaries of the Hoopa Valley Reservation, as those boundaries were configured before the date of the enactment of this Act. (2) All claims of failure to pay just compensation for a taking under the fifth amendment to the United States Constitution, if such claims are based on activities, occurring before the date of the enactment of this Act, related to the lands transferred to trust status under this section.
Approved November 13, 1997.
LEGISLATIVE HISTORY—H.R. 79: HOUSE REPORTS: No. 105–110 (Comm. on Resources). SENATE REPORTS: No. 105–117 (Comm. on Indian Affairs). CONGRESSIONAL RECORD, Vol. 143 (1997):

June 3, considered and passed House.

Nov. 4, considered and passed Senate.

 Public Law 105–80: To make technical amendments to certain provisions of title 17, United States Code. Public Law80 Public Law 105–80 111 Stat. 1529 1997-11-13 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1529 Public Law105–80 105th Congress
An Act To make technical amendments to certain provisions of title 17, United States Code.

Nov. 13, 1997

[H.R. 672]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. TECHNICAL CORRECTIONS TO THE SATELLITE HOME VIEWER ACT OF 1994. The Satellite Home Viewer Act of 1994 (Public Law 103–369) is amended as follows: (1) Section 2(3)(A) is amended to read as follows: “(A) in clause (i) by striking ‘12 cents’ and inserting ‘17.5 cents per subscriber in the case of superstations that as retransmitted by the satellite carrier include any program which, if delivered by any cable system in the United States, would be subject to the syndicated exclusivity rules of the Federal Communications Commission, and 14 cents per subscriber in the case of superstations that are syndex-proof as defined in section 258.2 of title 37, Code of Federal Regulations’; and”. (2) Section 2(4) is amended to read as follows: “(4) Subsection (c) is amended— “(A) in paragraph (1)— “(i) by striking ‘until December 31, 1992,’; “(ii) by striking ‘(2), (3) or (4)’ and inserting ‘(2) or (3)’; and “(iii) by striking the second sentence; “(B) in paragraph (2)— “(i) in subparagraph (A) by striking ‘July 1, 1991’ and inserting ‘July 1, 1996’; and “(ii) in subparagraph (D) by striking ‘December 31, 1994’ and inserting ‘December 31, 1999, or in accordance with the terms of the agreement, whichever is later’; and “(C) in paragraph (3)— “(i) in subparagraph (A) by striking ‘December 31, 1991’ and inserting ‘January 1, 1997’; “(ii) by amending subparagraph (B) to read as follows: “‘(B) Establishment of royalty fees.—In determining royalty fees under this paragraph, the copyright arbitration royalty panel appointed under chapter 8 shall establish fees for the retransmission of network stations and superstations that most clearly represent the fair market value of secondary transmissions. In determining the 111 STAT. 1530fair market value, the panel shall base its decision on economic, competitive, and programming information presented by the parties, including— “‘(i) the competitive environment in which such programming is distributed, the cost of similar signals in similar private and compulsory license marketplaces, and any special features and conditions of the retransmission marketplace; ‘“(ii) the economic impact of such fees on copyright owners and satellite carriers; and ‘“(iii) the impact on the continued availability of secondary transmissions to the public.’; and “(iii) in subparagraph (C), by inserting ‘or July 1, 1997, whichever is later’ after ‘section 802(g)’.”. (3) Section 2(5)(A) is amended to read as follows: “(A) in paragraph (5)(C) by striking ‘the date of the enactment of the Satellite Home Viewer Act of 1988’ and inserting ‘November 16, 1988’; and”.
SEC. 2. COPYRIGHT IN RESTORED WORKS. Section 104A of title 17, United States Code, is amended as follows: (1) Subsection (d)(3)(A) is amended to read as follows: “(3) Existing derivative works.—(A) In the case of a derivative work that is based upon a restored work and is created— “(i) before the date of the enactment of the Uruguay Round Agreements Act, if the source country of the restored work is an eligible country on such date, or “(ii) before the date on which the source country of the restored work becomes an eligible country, if that country is not an eligible country on such date of enactment, a reliance party may continue to exploit that derivative work for the duration of the restored copyright if the reliance party pays to the owner of the restored copyright reasonable compensation for conduct which would be subject to a remedy for infringement but for the provisions of this paragraph.”. (2) Subsection (e)(1)(B)(ii) is amended by striking the last sentence. (3) Subsection (h)(2) is amended to read as follows: “(2) The ‘date of restoration’ of a restored copyright is— “(A) January 1, 1996, if the source country of the restored work is a nation adhering to the Berne Convention or a WTO member country on such date, or “(B) the date of adherence or proclamation, in the case of any other source country of the restored work.”. (4) Subsection (h)(3) is amended to read as follows: “(3) The term ‘eligible country’ means a nation, other than the United States, that— “(A) becomes a WTO member country after the date of the enactment of the Uruguay Round Agreements Act; “(B) on such date of enactment is, or after such date of enactment becomes, a member of the Berne Convention; or “(C) after such date of enactment becomes subject to a proclamation under subsection (g).111 STAT. 1531 For purposes of this section, a nation that is a member of the Berne Convention on the date of the enactment of the Uruguay Round Agreements Act shall be construed to become an eligible country on such date of enactment.”.
SEC. 3. LICENSES FOR NONEXEMPT SUBSCRIPTION TRANSMISSIONS. Section 114(f) of title 17, United States Code, is amended— (1) in paragraph (1), by inserting “, or, if a copyright

Federal Register, publication.

 arbitration royalty panel is convened, ending 30 days after the Librarian issues and publishes in the Federal Register an order adopting the determination of the copyright arbitration royalty panel or an order setting the terms and rates (if the Librarian rejects the panel’s determination)” after “December 31, 2000”; and (2) in paragraph (2), by striking “and publish in the Federal Register”.
SEC. 4. ROYALTY PAYABLE UNDER COMPULSORY LICENSE. Section 115(c)(3)(D) of title 17, United States Code, is amended by striking “and publish in the Federal Register”.
SEC. 5. NEGOTIATED LICENSE FOR JUKEBOXES. Section 116 of title 17, United States Code, is amended— (1) by amending subsection (b)(2) to read as follows: “(2) Arbitration.—Parties not subject to such a negotiation may determine, by arbitration in accordance with the provisions of chapter 8, the terms and rates and the division of fees described in paragraph (1).”; and (2) by adding at the end the following new subsection: “(d) Definitions.—As used in this section, the following terms mean the following: “(1) A ‘coin-operated phonorecord player’ is a machine or device that— “(A) is employed solely for the performance of nondramatic musical works by means of phonorecords upon being activated by the insertion of coins, currency, tokens, or other monetary units or their equivalent; “(B) is located in an establishment making no direct or indirect charge for admission; “(C) is accompanied by a list which is comprised of the titles of all the musical works available for performance on it, and is affixed to the phonorecord player or posted in the establishment in a prominent position where it can be readily examined by the public; and “(D) affords a choice of works available for performance and permits the choice to be made by the patrons of the establishment in which it is located. “(2) An ‘operator’ is any person who, alone or jointly with others— “(A) owns a coin-operated phonorecord player; “(B) has the power to make a coin-operated phonorecord player available for placement in an establishment for purposes of public performance; or “(C) has the power to exercise primary control over the selection of the musical works made available for public performance on a coin-operated phonorecord player.”.111 STAT. 1532
SEC. 6. REGISTRATION AND INFRINGEMENT ACTIONS. Section 411(b)(1) of title 17, United States Code, is amended to read as follows: “(1) serves notice upon the infringer, not less than 48 hours before such fixation, identifying the work and the specific time and source of its first transmission, and declaring an intention to secure copyright in the work; and”.
SEC. 7. COPYRIGHT OFFICE FEES. (a) Fee Increases.—Section 708(b) of title 17, United States Code, is amended to read as follows: “(b) In calendar year 1997 and in any subsequent calendar year, the Register of Copyrights, by regulation, may increase the fees specified in subsection (a) in the following manner: “(1) The Register shall conduct a study of the costs incurred by the Copyright Office for the registration of claims, the recordation of documents, and the provision of services. The study shall also consider the timing of any increase in fees and the authority to use such fees consistent with the budget. “(2) The Register may, on the basis of the study under paragraph (1), and subject to paragraph (5), increase fees to not more than that necessary to cover the reasonable costs incurred by the Copyright Office for the services described in paragraph (1), plus a reasonable inflation adjustment to account for any estimated increase in costs. “(3) Any fee established under paragraph (2) shall be rounded off to the nearest dollar, or for a fee less than $12, rounded off to the nearest 50 cents. “(4) Fees established under this subsection shall be fair and equitable and give due consideration to the objectives of the copyright system. “(5) If the Register determines under paragraph (2) that fees should be increased, the Register shall prepare a proposed fee schedule and submit the schedule with the accompanying economic analysis to the Congress. The fees proposed by the Register may be instituted after the end of 120 days after the schedule is submitted to the Congress unless, within that 120-day period, a law is enacted stating in substance that the Congress does not approve the schedule.”. (b) Deposit of Fees.—Section 708(d) of such title is amended to read as follows: “(d)(1) Except as provided in paragraph (2), all fees received under this section shall be deposited by the Register of Copyrights in the Treasury of the United States and shall be credited to the appropriations for necessary expenses of the Copyright Office. Such fees that are collected shall remain available until expended. The Register may, in accordance with regulations that he or she shall prescribe, refund any sum paid by mistake or in excess of the fee required by this section. “(2) In the case of fees deposited against future services, the Register of Copyrights shall request the Secretary of the Treasury to invest in interest-bearing securities in the United States Treasury any portion of the fees that, as determined by the Register, is not required to meet current deposit account demands. Funds from such portion of fees shall be invested in securities that permit funds to be available to the Copyright Office at all times if they are determined to be necessary to meet current deposit account 111 STAT. 1533demands. Such investments shall be in public debt securities with maturities suitable to the needs of the Copyright Office, as determined by the Register of Copyrights, and bearing interest at rates determined by the Secretary of the Treasury, taking into consideration current market yields on outstanding marketable obligations of the United States of comparable maturities. “(3) The income on such investments shall be deposited in the Treasury of the United States and shall be credited to the appropriations for necessary expenses of the Copyright Office.”.
SEC. 8. COPYRIGHT ARBITRATION ROYALTY PANELS. (a) Establishment and Purpose.—Section 801 of title 17, United States Code, is amended— (1) in subsection (b)(1) by striking “and 116” in the first sentence and inserting “116, and 119”; (2) in subsection (c) by inserting after “panel” at the end of the sentence the following: “, including— “(1) authorizing the distribution of those royalty fees collected under sections 111, 119, and 1005 that the Librarian has found are not subject to controversy; and “(2) accepting or rejecting royalty claims filed under sections 111, 119, and 1007 on the basis of timeliness or the failure to establish the basis for a claim”; and (3) by amending subsection (d) to read as follows: “(d) Support and Reimbursement of Arbitration Panels.—The Librarian of Congress, upon the recommendation of the Register of Copyrights, shall provide the copyright arbitration royalty panels with the necessary administrative services related to proceedings under this chapter, and shall reimburse the arbitrators presiding in distribution proceedings at such intervals and in such manner as the Librarian shall provide by regulation. Each such arbitrator is an independent contractor acting on behalf of the United States, and shall be hired pursuant to a signed agreement between the Library of Congress and the arbitrator. Payments to the arbitrators shall be considered reasonable costs incurred by the Library of Congress and the Copyright Office for purposes of section 802(h)(1).”. (b) Proceedings.—Section 802(h) of title 17, United States Code, is amended by amending paragraph (1) to read as follows: “(1) Deduction of costs of library of congress and copyright office from royalty fees.—The Librarian of Congress and the Register of Copyrights may, to the extent not otherwise provided under this title, deduct from royalty fees deposited or collected under this title the reasonable costs incurred by the Library of Congress and the Copyright Office under this chapter. Such deduction may be made before the fees are distributed to any copyright claimants. In addition, all funds made available by an appropriations Act as offsetting collections and available for deductions under this subsection shall remain available until expended. In ratemaking proceedings, the reasonable costs of the Librarian of Congress and the Copyright Office shall be borne by the parties to the proceedings as directed by the arbitration panels under subsection (c).”.111 STAT. 1534
SEC. 9. DIGITAL AUDIO RECORDING DEVICES AND MEDIA. Section 1007(b) of title 17, United States Code, is amended by striking “Within 30 days after” in the first sentence and inserting “After”.
SEC. 10. CONFORMING AMENDMENT. Section 4 of the Digital Performance Right in Sound Recordings

17 USC 115.

Act of 1995 (Public Law 104–39) is amended by redesignating paragraph (5) as paragraph (4).
SEC. 11. DISTRIBUTION OF PHONORECORDS. Section 303 of title 17, United States Code, is amended— (1) by striking “Copyright” and inserting “(a) Copyright”; and (2) by inserting at the end the following: “(b) The distribution before January 1, 1978, of a phonorecord shall not for any purpose constitute a publication of the musical work embodied therein.”.
SEC. 12. MISCELLANEOUS TECHNICAL AMENDMENTS. (a) Amendments to Title 17, United States Code.—Title 17, United States Code, is amended as follows: (1) The table of chapters at the beginning of title 17, United States Code, is amended— (A) in the item relating to chapter 6, by striking “Requirement” and inserting “Requirements”; (B) in the item relating to chapter 8, by striking “Royalty Tribunal” and inserting “Arbitration Royalty Panels”; (C) in the item relating to chapter 9, by striking “semiconductor chip products” and inserting “Semiconductor Chip Products”; and (D) by inserting after the item relating to chapter 9 the following: “10. Digital Audio Recording Devices and Media 1001”. (2) The item relating to section 117 in the table of sections at the beginning of chapter 1 is amended to read as follows: “117. (3) Section 101 is amended in the definition of to perform or display a work “publicly” by striking “processs” and inserting “process”. (4) Section 108(e) is amended by striking “pair” and inserting “fair”. (5) Section 109(b)(2)(B) is amended by striking “Copyright” and inserting “Copyrights”. (6) Section 110 is amended— (A) in paragraph (8) by striking the period at the end and inserting a semicolon; (B) in paragraph (9) by striking the period at the end and inserting “; and”; and (C) in paragraph (10) by striking “4 above” and inserting “(4)”. (7) Section 115(c)(3)(E) is amended— (A) in clause (i) by striking “sections 106(1) and (3)” each place it appears and inserting “paragraphs (1) and (3) of section 106”; and111 STAT. 1535 (B) in clause (ii)(II) by striking “sections 106(1) and 106(3)” and inserting “paragraphs (1) and (3) of section 106”. (8) Section 119(c)(1) is amended by striking “until unless” and inserting “unless”. (9) Section 304(c) is amended in the matter preceding paragraph (1) by striking “the subsection (a)(1)(C)” and inserting “subsection (a)(1)(C)”. (10) Section 405(b) is amended by striking “condition or” and inserting “condition for”. (11) Section 407(d)(2) is amended by striking “cost of” and inserting “cost to”. (12) The item relating to section 504 in the table of sections at the beginning of chapter 5 is amended by striking “Damage” and inserting “Damages”. (13) Section 504(c)(2) is amended by striking “court it” and inserting “court in”. (14) Section 509(b) is amended by striking “merchandise; and baggage” and inserting “merchandise, and baggage”. (15) Section 601(a) is amended by striking “nondramtic” and inserting “nondramatic”. (16) Section 601(b)(1) is amended by striking “subsustantial” and inserting “substantial”. (17) The item relating to section 710 in the table of sections at the beginning of chapter 7 is amended by striking “Reproductions” and inserting “Reproduction”. (18) The item relating to section 801 in the table of sections at the beginning of chapter 8 is amended by striking “establishment” and inserting “Establishment”. (19) Section 801(b) is amended— (A) by striking “shall be—” and inserting “shall be as follows:”; (B) in paragraph (1) by striking “to make” and inserting “To make”; (C) in paragraph (2)— (i) by striking “to make” and inserting “To make”; and (ii) in subparagraph (D) by striking “adjustment; and” and inserting “adjustment.”; and (D) in paragraph (3) by striking “to distribute” and inserting “To distribute”. (20) Section 803(b) is amended in the second sentence by striking “subsection subsection” and inserting “subsection”. (21) The item relating to section 903 in the table of sections at the beginning of chapter 9 is amended to read as follows: “903. (22) Section 909(b)(1) is amended— (A) by striking “force” and inserting “work”; and (B) by striking “sumbol” and inserting “symbol”. (23) Section 910(a) is amended in the second sentence by striking “as used” and inserting “As used”. (24) Section 1006(b)(1) is amended by striking “Federation Television” and inserting “Federation of Television”. (25) Section 1007 is amended—111 STAT. 1536 (A) in subsection (a)(1) by striking “the calendar year in which this chapter takes effect” and inserting “calendar year 1992”; and (B) in subsection (b) by striking “the year in which this section takes effect” and inserting “1992”. (b) Related Provisions.— (1) Section 1(a)(1) of the Act entitled “An Act to amend chapter 9 of title 17, United States Code, regarding protection extended to semiconductor chip products of foreign entities”, approved November 9, 1987 (17 U.S.C. 914 note), is amended by striking “orginating” and inserting “originating”. (2) Section 2319(b)(1) of title 18, United States Code, is amended by striking “last 10” and inserting “least 10”.
SEC. 13. EFFECTIVE DATES. (a) In General.—Except as provided in subsections (b) and (c), the amendments made by thus Act shall take effect on the date of the enactment of this Act. (b) Satellite Home Viewer Act.—The amendments made by section 1 shall be effective as if enacted as part of the Satellite Home Viewer Act of 1994 (Public Law 103–369). (c) Technical Amendment.—The amendment made by section 12(b)(1) shall be effective as if enacted on November 9, 1987.
Approved November 13, 1997.
LEGISLATIVE HISTORY—H.R. 672 (S. 506): HOUSE REPORTS: No. 105–25 (Comm. on the Judiciary). CONGRESSIONAL RECORD, Vol. 143 (1997):

Mar. 18, considered and passed House.

Oct. 30, considered and passed Senate, amended.

Nov. 4, House concurred in Senate amendments.

 Public Law 105–81: To require the Secretary of the Interior to conduct a study concerning grazing use and open space within and adjacent to Grand Teton National Park, Wyoming, and to extend temporarily certain grazing privileges. Public Law81 Public Law 105–81 111 Stat. 1537 1997-11-13 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1537 Public Law105–81 105th Congress
An Act To require the Secretary of the Interior to conduct a study concerning grazing use and open space within and adjacent to Grand Teton National Park, Wyoming, and to extend temporarily certain grazing privileges.

Nov. 13, 1997

[H.R. 708]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. FINDINGS.

16 USC 406d–2 note.

 Congress finds that— (1) open space near Grand Teton National Park continues to decline; (2) as the population continues to grow in Teton County, Wyoming, undeveloped land near the Park becomes more scarce; (3) the loss of open space around Teton Park has negative impacts on wildlife migration routes in the area and on visitors to the Park, and its repercussions can be felt throughout the entire region; (4) a few ranches make up Teton Valley’s remaining open space, and the ranches depend on grazing in Grand Teton National Park for summer range to maintain operations; (5) the Act that created Grand Teton National Park allowed several permittees to continue livestock grazing in the Park for the life of a designated heir in the family; (6) some of the last remaining heirs have died, and as a result the open space around the Park will most likely be subdivided and developed; (7) in order to develop the best solution to protect open space immediately adjacent to Grand Teton National Park, the Park Service should conduct a study of open space in the region; and (8) the study should develop workable solutions that are fiscally responsible and acceptable to the National Park Service, the public, local government, and landowners in the area.
SEC. 2. STUDY OF GRAZING USE AND OPEN SPACE.

16 USC 406d–2 note.

 (a) In General.—The Secretary of the Interior shall conduct a study concerning grazing use and open space in Grand Teton National Park, Wyoming, and associated use of certain agricultural and ranch lands within and adjacent to the Park, including—111 STAT. 1538 (1) base land having appurtenant grazing privileges within Grand Teton National Park, Wyoming, remaining after January 1, 1990, under the Act entitled “An Act to establish a new Grand Teton National Park in the State of Wyoming, and for other purposes”, approved September 14, 1950 (16 U.S.C. 406d–1 et seq.); and (2) any ranch and agricultural land adjacent to the Park, the use and disposition of which may affect accomplishment of the purposes of the Act. (b) Purpose.—The study shall— (1) assess the significance of the ranching use and pastoral character of the land (including open vistas, wildlife habitat, and other public benefits); (2) assess the significance of that use and character to the purposes for which the Park was established and identify any need for preservation of, and practicable means of, preserving the land that is necessary to protect that use and character; (3) recommend a variety of economically feasible and viable tools and techniques to retain the pastoral qualities of the land; and (4) estimate the costs of implementing any recommendations made for the preservation of the land. (c) Participation.—In conducting the study, the Secretary of the Interior shall seek participation from the Governor of the State of Wyoming, the Teton County Commissioners, the Secretary of Agriculture, affected land owners, and other interested members of the public. (d) Report.—Not later than 3 years from the date funding is available for the purposes of this Act, the Secretary of the Interior shall submit a report to Congress that contains the findings of the study under subsection (a) and makes recommendations to Congress regarding action that may be taken with respect to the land described in subsection (a).
SEC. 3.

16 USC 406d–2 note.

 EXTENSION OF GRAZING PRIVILEGES. (a) In General.—Subject to subsection (b), the Secretary of the Interior shall reinstate and extend for the duration of the study described in section 2(a) and until such time as the recommendations of the study are implemented, the grazing privileges described in section 2(a)(1), under the same terms and conditions as were in effect prior to the expiration of the privileges.111 STAT. 1539 (b) Effect of Change in Land Use.—If, during the period of the study or until such time as the recommendations of the study are implemented, any portion of the land described in section 2(a)(1) is disposed of in a manner that would result in the land no longer being used for ranching or other agricultural purposes, the Secretary of the Interior shall cancel the extension described in subsection (a).
Approved November 13, 1997.
LEGISLATIVE HISTORY—H.R. 708 (S. 308): HOUSE REPORTS: No. 105–300 (Comm. on Resources). SENATE REPORTS: No. 105–64 accompanying S. 308 (Comm. on Energy and Natural Resources). CONGRESSIONAL RECORD, Vol. 143 (1997):

Oct. 21, considered and passed House.

Nov. 4, considered and passed Senate.

 Public Law 105–82: To designate the Marjory Stoneman Douglas Wilderness and the Ernest F. Coe Visitor Center. Public Law82 Public Law 105–82 111 Stat. 1540 1997-11-13 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1540 Public Law105–82 105th Congress
An Act To designate the Marjory Stoneman Douglas Wilderness and the Ernest F. Coe Visitor Center.

Nov. 13, 1997

[S. 931]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Marjory Stoneman Douglas Wilderness and Ernest F. Coe Visitor Center Designation Act.

16 USC 410r–5 note.

16 USC 410r–7 note.
SECTION 1. SHORT TITLE. This Act may be cited as the “Marjory Stoneman Douglas Wilderness and Ernest F. Coe Visitor Center Designation Act”.
SEC. 2. FINDINGS AND PURPOSE. (a) Findings.—Congress finds that— (1)(A) Marjory Stoneman Douglas, through her book, “The Everglades: River of Grass” (published in 1947), defined the Everglades for the people of the United States and the world; (B) Mrs. Douglas’s book was the first to stimulate widespread understanding of the Everglades ecosystem and ultimately served to awaken the desire of the people of the United States to restore the ecosystem’s health; (C) in her 107th year, Mrs. Douglas is the sole surviving member of the original group of people who devoted decades of selfless effort to establish the Everglades National Park; (D) when the water supply and ecology of the Everglades, both within and outside the park, became threatened by drainage and development, Mrs. Douglas dedicated the balance of her life to the defense of the Everglades through extraordinary personal effort and by inspiring countless other people to take action; (E) for these and many other accomplishments, the President awarded Mrs. Douglas the Medal of Freedom on Earth Day, 1994; and (2)(A) Ernest F. Coe (1886–1951) was a leader in the creation of Everglades National Park; (B) Mr. Coe organized the Tropic Everglades National Park Association in 1928 and was widely regarded as the father of Everglades National Park; (C) as a landscape architect, Mr. Coe’s vision for the park recognized the need to protect south Florida’s diverse wildlife and habitats for future generations; (D) Mr. Coe’s original park proposal included lands and waters subsequently protected within the Everglades National Park, the Big Cypress National Preserve, and the Florida Keys National Marine Sanctuary; and111 STAT. 1541 (E)(i) Mr. Coe’s leadership, selfless devotion, and commitment to achieving his vision culminated in the authorization of the Everglades National Park by Congress in 1934; (ii) after authorization of the park, Mr. Coe fought tirelessly and lobbied strenuously for establishment of the park, finally realizing his dream in 1947; and (iii) Mr. Coe accomplished much of the work described in this paragraph at his own expense, which dramatically demonstrated his commitment to establishment of Everglades National Park. (b) Purpose.—It is the purpose of this Act to commemorate the vision, leadership, and enduring contributions of Marjory Stoneman Douglas and Ernest F. Coe to the protection of the Everglades and the establishment of Everglades National Park.
SEC. 3. MARJORY STONEMAN DOUGLAS WILDERNESS.

16 USC 1132 note.

 (a) Redesignation.—Section 401(3) of the National Parks and Recreation Act of 1978 (Public Law 95–625; 92 Stat. 3490; 16 U.S.C. 1132 note) is amended by striking “to be known as the Everglades Wilderness” and inserting “to be known as the Marjory Stoneman Douglas Wilderness, to commemorate the vision and leadership shown by Mrs. Douglas in the protection of the Everglades and the establishment of the Everglades National Park”. (b) Notice of Redesignation.—The Secretary of the Interior shall provide such notification of the redesignation made by the amendment made by subsection (a) by signs, materials, maps, markers, interpretive programs, and other means (including changes in signs, materials, maps, and markers in existence before the date of enactment of this Act) as will adequately inform the public of the redesignation of the wilderness area and the reasons for the redesignation. (c) References.—Any reference in any law, regulation, document, record, map, or other paper of the United States to the “Everglades Wilderness” shall be deemed to be a reference to the “Marjory Stoneman Douglas Wilderness”.
SEC. 4. ERNEST F. COE VISITOR CENTER. (a) Designation.—Section 103 of the Everglades National Park Protection and Expansion Act of 1989 (16 U.S.C. 410r–7) is amended by adding at the end the following new subsection: “(f) Ernest F. Coe Visitor Center.—On completion of construction of the main visitor center facility at the headquarters of Everglades National Park, the Secretary shall designate the visitor center facility as the ‘Ernest F. Coe Visitor Center’, to commemorate the vision and leadership shown by Mr. Coe in the establishment and protection of Everglades National Park.”.111 STAT. 1542
SEC. 5. CONFORMING AND TECHNICAL AMENDMENTS. Section 103 of the Everglades National Park Protection and Expansion Act of 1989 (16 U.S.C. 410r–7) is amended— (1) in subsection (c)(2), by striking “personnally-owned” and inserting “personally-owned”; and (2) in subsection (e), by striking “Visitor Center” and inserting “Marjory Stoneman Douglas Visitor Center”.
Approved November 13, 1997.
LEGISLATIVE HISTORY—S. 931 (H.R. 136): HOUSE REPORTS: No. 105–328 accompanying H.R. 136 (Comm. on Resources). SENATE REPORTS: No. 105–68 (Comm. on Energy and Natural Resources). CONGRESSIONAL RECORD, Vol. 143 (1997):

Sept. 16, considered and passed Senate.

Nov. 4, considered and passed House.

 Public Law 105–83: Making appropriations for the Department of the Interior and related agencies for the fiscal year ending September 30, 1998, and for other purposes. Public Law83 Public Law 105–83 111 Stat. 1543 1997-11-14 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1543

*Note: This law contains items that were cancelled by the President pursuant to the Line Item Veto Act. For more information, see the Federal Register entry under “LEGISLATIVE HISTORY” at the end of this law.

 Public Law105–83 105th Congress
An Act Making appropriations for the Department of the Interior and related agencies for the fiscal year ending September 30, 1998, and for other purposes.

Nov. 14, 1997

[H.R. 2107]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
That the

Department of the Interior and Related Agencies Appropriations Act, 1998.

 following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 1998, and for other purposes, namely:
<num value="I">TITLE I—</num><heading>DEPARTMENT OF THE INTERIOR</heading> <appropriations level="intermediate"> <heading>Bureau of Land Management</heading> <appropriations level="small"> <heading>management of lands and resources</heading> <content>For expenses necessary for protection, use, improvement, development, disposal, cadastral surveying, classification, acquisition of easements and other interests in lands, and performance of other functions, including maintenance of facilities, as authorized by law, in the management of lands and their resources under the jurisdiction of the Bureau of Land Management, including the general administration of the Bureau, and assessment of mineral potential of public lands pursuant to Public Law 96–487 (16 U.S.C. 3150(a)), $583,270,000, to remain available until expended, of which $2,043,000 shall be available for assessment of the mineral potential of public lands in Alaska pursuant to section 1010 of Public Law 96–487 (16 U.S.C. 3150); and of which $3,000,000 shall be derived from the special receipt account established by the Land and Water Conservation Act of 1965, as amended (16 U.S.C. 460l–6a(i)); and of which $1,500,000 shall be available in fiscal year 1998 subject to a match by at least an equal amount by the National Fish and Wildlife Foundation, to such Foundation for challenge cost share projects supporting fish and wildlife conservation affecting Bureau lands; in audition, $27,650,000 for Mining Law Administration program operations, to remain available until expended, to be reduced by amounts collected by the Bureau and credited to this appropriation from annual mining claim fees so as to result in a final appropriation estimated at not more than $583,270,000; and in addition, not to exceed $5,000,000, to remain available until expended, from annual mining claim fees; which shall be credited to this account for the costs of administering the mining claim fee program, and $2,000,000 from communication site rental fees established by the Bureau for the cost of administering communication site activities: <proviso><i>Provided,</i> That appropriations herein made <page identifier="/us/stat/111/1544">111 STAT. 1544</page>shall not be available for the destruction of healthy, unadopted, wild horses and burros in the care of the Bureau or its contractors.</proviso></content> </appropriations> <appropriations level="small"> <heading>wildland fire management</heading> <content>For necessary expenses for fire use and management, fire preparedness, suppression operations, and emergency rehabilitation by the Department of the Interior, $280,103,000, to remain available until expended, of which not to exceed $6,950,000 shall be for the renovation or construction of fire facilities: <proviso><i>Provided,</i> That such funds are also available for repayment of advances to other appropriation accounts from which funds were previously transferred for such purposes:</proviso> <proviso><i>Provided further,</i> That persons hired pursuant to 43 U.S.C. 1469 may be furnished subsistence and lodging without cost from funds available from this appropriation.</proviso></content> </appropriations> <appropriations level="small"> <heading>central hazardous materials fund</heading> <content>For necessary expenses of the Department of the Interior and any of its component offices and bureaus for the remedial action, including associated activities, of hazardous waste substances, pollutants, or contaminants pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act, as amended (42 U.S.C. 9601 et seq.), $12,000,000, to remain available until expended: <proviso><i>Provided,</i> That notwithstanding 31 U.S.C. 3302, sums recovered from or paid by a party in advance of or as reimbursement for remedial action or response activities conducted by the Department pursuant to section 107 or 113(f) of such Act, shall be credited to this account to be available until expended without further appropriation:</proviso> <proviso><i>Provided further,</i> That such sums recovered from or paid by any party are not limited to monetary payments and may include stocks, bonds or other personal or real property, which may be retained, liquidated, or otherwise disposed of by the Secretary and which shall be credited to this account.</proviso></content> </appropriations> <appropriations level="small"> <heading>construction</heading> <content>For construction of buildings, recreation facilities, roads, trails, and appurtenant facilities, $3,254,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>payments in lieu of taxes</heading> <content>For expenses necessary to implement the Act of October 20, 1976, as amended (31 U.S.C. 6901–6907), $120,000,000, of which not to exceed $400,000 shall be available for administrative expenses: <proviso><i>Provided,</i> That no payment shall be made to otherwise eligible units of local government if the computed amount of the payment is less than $100.</proviso></content> </appropriations> <appropriations level="small"> <heading>land acquisition</heading> <content>For expenses necessary to carry out sections 205, 206, and 318(d) of Public Law 94–579, including administrative expenses and acquisition of lands or waters, or interests therein, $11,200,000, to be derived from the Land and Water Conservation Fund, to remain available until expended.<page identifier="/us/stat/111/1545">111 STAT. 1545</page></content> </appropriations> <appropriations level="small"> <heading>oregon and california grant lands</heading> <content>For expenses necessary for management, protection, and development of resources and for construction, operation, and maintenance of access roads, reforestation, and other improvements on the revested Oregon and California Railroad grant lands, on other Federal lands in the Oregon and California land-grant counties of Oregon, and on adjacent rights-of-way; and acquisition of lands or interests therein including existing connecting roads on or adjacent to such grant lands; $101,406,000, to remain available until expended: <proviso><i>Provided,</i> That 25 percent of the aggregate of all receipts during the current fiscal year from the revested Oregon and California Railroad grant lands is hereby made a charge against the Oregon and California land-grant fund and shall be transferred to the general fund in the Treasury in accordance with the second paragraph of subsection (b) of title II of the Act of August 28, 1937 (50 Stat. 876).</proviso></content> </appropriations> <appropriations level="small"> <heading>forest ecosystems health and recovery</heading> <subheading>(revolving fund, special account)</subheading> <content>In addition to the purposes authorized in Public Law 102–381, funds made available in the Forest Ecosystem Health and Recovery Fund can be used for the purpose of planning, preparing, and monitoring salvage timber sales and forest ecosystem health and recovery activities such as release from competing vegetation and density control treatments. The Federal share of receipts derived from treatments funded by this account shall be deposited into the Forest Ecosystem Health and Recovery Fund.</content> </appropriations> <appropriations level="small"> <heading>range improvements</heading> <content>For rehabilitation, protection, and acquisition of lands and interests therein, and improvement of Federal rangelands pursuant to section 401 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1701), notwithstanding any other Act, sums equal to 50 percent of all moneys received during the prior fiscal year under sections 3 and 15 of the Taylor Grazing Act (43 U.S.C. 315 et seq.) and the amount designated for range improvements from grazing fees and mineral leasing receipts from Bankhead-Jones lands transferred to the Department of the Interior pursuant to law, but not less than $9,113,000, to remain available until expended: <proviso><i>Provided,</i> That not to exceed $600,000 shall be available for administrative expenses.</proviso></content> </appropriations> <appropriations level="small"> <heading>service charges, deposits, and forfeitures</heading> <content>For administrative expenses and other costs related to processing application documents and other authorizations for use and disposal of public lands and resources, for costs of providing copies of official public land documents, for monitoring construction, operation, and termination of facilities in conjunction with use authorizations, and for rehabilitation of damaged property, such amounts as may be collected under Public Law 94–579, as amended, and Public Law 93–153, to remain available until expended: <proviso><i>Provided,</i> That notwithstanding any provision to the contrary of section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t43/s1735">43 USC 1735 note</ref>.</p></sidenote> 305(a) of Public Law 94–579 (43 U.S.C. 1735(a)), any moneys that have been or will be received pursuant to that section, whether <page identifier="/us/stat/111/1546">111 STAT. 1546</page>as a result of forfeiture, compromise, or settlement, if not appropriate for refund pursuant to section 305(c) of that Act (43 U.S.C. 1735(c)), shall be available and may be expended under the authority of this Act by the Secretary to improve, protect, or rehabilitate any public lands administered through the Bureau of Land Management which have been damaged by the action of a resource developer, purchaser, permittee, or any unauthorized person, without regard to whether all moneys collected from each such action are used on the exact lands damaged which led to the action:</proviso> <proviso><i>Provided further,</i> That any such moneys that are in excess of amounts needed to repair damage to the exact land for which funds were collected may be used to repair other damaged public lands.</proviso></content> </appropriations> <appropriations level="small"> <heading>miscellaneous trust funds</heading> <content>In addition to amounts authorized to be expended under existing laws, there is hereby appropriated such amounts as may be contributed under section 307 of the Act of October 21, 1976 (43 U.S.C. 1701), and such amounts as may be advanced for administrative costs, surveys, appraisals, and costs of making conveyances of omitted lands under section 211(b) of that Act, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>administrative provisions</heading> <content>Appropriations for the Bureau of Land Management shall be available for purchase, erection, and dismantlement of temporary structures, and alteration and maintenance of necessary buildings and appurtenant facilities to which the United States has title; up to $100,000 for payments, at the discretion of the Secretary, for information or evidence concerning violations of laws administered by the Bureau; miscellaneous and emergency expenses of enforcement activities authorized or approved by the Secretary and to be accounted for solely on his certificate, not to exceed $10,000: <proviso><i>Provided,</i> That notwithstanding 44 U.S.C. 501, the Bureau may, under cooperative cost-sharing and partnership arrangements authorized by law, procure printing services from cooperators in connection with jointly produced publications for which the cooperators share the cost of printing either in cash or in services, and the Bureau determines the cooperator is capable of meeting accepted quality standards.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>United States Fish and Wildlife Service</heading> <appropriations level="small"> <heading>resource management</heading> <content>For expenses necessary for scientific and economic studies, conservation, management, investigations, protection, and utilization of fishery and wildlife resources, except whales, seals, and sea lions, and for the performance of other authorized functions related to such resources; for the general administration of the United States Fish and Wildlife Service; for maintenance of the herd of long-horned cattle on the Wichita Mountains Wildlife Refuge; and not less than $1,000,000 for high priority projects within the scope of the approved budget which shall be carried out by the Youth Conservation Corps as authorized by the Act of August 13, 1970, as amended, $594,842,000, to remain available until September 30, 1999, of which $11,612,000 shall remain available <page identifier="/us/stat/111/1547">111 STAT. 1547</page>until expended for operation and maintenance of fishery mitigation facilities constructed by the Corps of Engineers under the Lower Snake River Compensation Plan, authorized by the Water Resources Development Act of 1976, to compensate for loss of fishery resources from water development projects on the Lower Snake River, and of which not less than $2,000,000 shall be provided to local governments in southern California for planning associated with the Natural Communities Conservation Planning (NCCP) program and shall remain available until expended, and of which not to exceed $5,190,000 shall be used for implementing subsections (a), (b), (c), and (e) of section 4 of the Endangered Species Act of 1973, as amended: <proviso><i>Provided,</i> That the proviso under this heading in Public Law 104–208 is amended by striking the words “Education and”<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s742b">16 USC 742b note</ref>.</p></sidenote> and inserting in lieu thereof “Conservation”, by striking the word “direct” and inserting in lieu thereof the word “full”, and by inserting before the period “, to remain available until expended”.</proviso></content> </appropriations> <appropriations level="small"> <heading>construction</heading> <content>For construction and acquisition of buildings and other facilities required in the conservation, management, investigation, protection, and utilization of fishery and wildlife resources, and the acquisition of lands and interests therein; $45,006,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>natural resource damage assessment fund</heading> <content>To conduct natural resource damage assessment activities by the Department of the Interior necessary to carry out the provisions of the Comprehensive Environmental Response, Compensation, and Liability Act, as amended (42 U.S.C. 9601 et seq.), Federal Water Pollution Control Act, as amended (33 U.S.C. 1251 et seq.), the Oil Pollution Act of 1990 (Public Law 101–380), and Public Law 101–337; $4,228,000, to remain available until expended: <proviso><i>Provided,</i> That under this heading in Public Law 104–134, strike “<quotedText>in fiscal<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t43/s1474b–1">43 USC 1474b–1</ref>.</p></sidenote> year 1996 and thereafter</quotedText>” in the proviso and insert “<quotedText>heretofore and hereafter</quotedText>”, and before the phrase “or properties shall be utilized” in such proviso, insert to remain available until expended,”:</proviso> <proviso><i>Provided further,</i> That the first proviso under this heading in Public Law 103–138 is amended by inserting after “<quotedText>account</quotedText>” the following:<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t43/s1474b–1">43 USC 1474b–1</ref>.</p></sidenote> “, including transfers to Federal trustees and payments to non-Federal trustees,”.</proviso></content> </appropriations> <appropriations level="small"> <heading>land acquisition</heading> <content>For expenses necessary to carry out the Land and Water Conservation Fund Act of 1965, as amended (16 U.S.C. 460l–4 through 11), including administrative expenses, and for acquisition of land or waters, or interest therein, in accordance with statutory authority applicable to the United States Fish and Wildlife Service, $62,632,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>cooperative endangered species conservation fund</heading> <content>For expenses necessary to carry out the provisions of the Endangered Species Act of 1973 (16 U.S.C. 1531–1543), as amended, $14,000,000, for grants to States, to be derived from the Cooperative Endangered Species Conservation Fund, and to remain available until expended.<page identifier="/us/stat/111/1548">111 STAT. 1548</page></content> </appropriations> <appropriations level="small"> <heading>national wildlife refuge fund</heading> <content>For expenses necessary to implement the Act of October 17, 1978 (16 U.S.C. 715s), $10,779,000.</content> </appropriations> <appropriations level="small"> <heading>rewards and operations</heading> <content>For expenses necessary to carry out the provisions of the African Elephant Conservation Act (16 U.S.C. 4201–4203, 4211–4213, 4221–4225, 4241–4245, and 1538), $1,000,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>north american wetlands conservation fund</heading> <content>For expenses necessary to carry out the provisions of the North American Wetlands Conservation Act, Public Law 101–233, as amended, $11,700,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>rhinoceros and tiger conservation fund</heading> <content>For deposit to the Rhinoceros and Tiger Conservation Fund, $400,000, to remain available until expended, to carry out the Rhinoceros and Tiger Conservation Act of 1994 (Public Law 103–391).</content> </appropriations> <appropriations level="small"> <heading>wildlife conservation and appreciation fund</heading> <content>For deposit to the Wildlife Conservation and Appreciation Fund, $800,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>administrative provisions</heading> <content>Appropriations and funds available to the United States Fish and Wildlife Service shall be available for purchase of not to exceed 108 passenger motor vehicles, of which 92 are for replacement only (including 57 for police-type use); not to exceed $400,000 for payment, at the discretion of the Secretary, for information, rewards, or evidence concerning violations of laws administered by the Service, and miscellaneous and emergency expenses of enforcement activities, authorized or approved by the Secretary and to be accounted for solely on his certificate; repair of damage to public roads within and adjacent to reservation areas caused by operations of the Service; options for the purchase of land at not to exceed $1 for each option; facilities incident to such public recreational uses on conservation areas as are consistent with their primary purpose; and the maintenance and improvement of aquaria, buildings, and other facilities under the jurisdiction of the Service and to which the United States has title, and which are utilized pursuant to law in connection with management and investigation of fish and wildlife resources: <proviso><i>Provided,</i> That notwithstanding 44 U.S.C. 501, the Service may, under cooperative cost sharing and partnership arrangements authorized by law, procure printing services from cooperators in connection with jointly produced publications for which the cooperators share at least one-half the cost of printing either in cash or services and the Service determines the cooperator is capable of meeting accepted quality standards:</proviso> <proviso><i>Provided further,</i> That the Service may accept donated aircraft as replacements for existing aircraft:</proviso> <proviso><i>Provided further,</i> That notwithstanding any other provision of law, the Secretary of the Interior may not spend any of the funds appropriated in this Act <page identifier="/us/stat/111/1549">111 STAT. 1549</page>for the purchase of lands or interests in lands to be used in the establishment of any new unit of the National Wildlife Refuge System unless the purchase is approved in advance by the House and Senate Committees on Appropriations in compliance with the reprogramming procedures contained in the report accompanying this bill:</proviso> <proviso><i>Provided further,</i> That the Secretary may sell land and interests in land, other than surface water rights, acquired in conformance with subsections 206(a) and 207(c) of Public Law 101–816, the receipts of which shall be deposited to the Lahontan Valley and Pyramid Lake Fish and Wildlife Fund and used exclusively for the purposes of such subsections, without regard to the limitation on the distribution of benefits in subsection 206(f)(2) of such law.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Park Service</heading> <appropriations level="small"> <heading>operation of the national park system</heading> <content>For expenses necessary for the management, operation, and maintenance of areas and facilities administered by the National Park Service (including special road maintenance service to trucking permittees on a reimbursable basis), and for the general administration of the National Park Service, including not to exceed $1,593,000 for the Volunteers-in-Parks program, and not less than $1,000,000 for high priority projects within the scope of the approved budget which shall be carried out by the Youth Conservation Corps as authorized by 16 U.S.C. 1706, $1,233,664,000, of which $12,800,000 for research, planning and interagency coordination in support of land acquisition for Everglades restoration shall remain available until expended, and of which not to exceed $72,000,000, to remain available until expended, is to be derived from the special fee account established pursuant to title V, section 5201 of Public Law 100–203.</content> </appropriations> <appropriations level="small"> <heading>national recreation and preservation</heading> <content>For expenses necessary to carry out recreation programs, natural programs, cultural programs, heritage partnership programs, environmental compliance and review, international park affairs, statutory or contractual aid for other activities, and grant administration, not otherwise provided for, $44,259,000, of which $4,500,000 is for grants to Heritage areas in accordance with section 606 of title VI, division I and titles I–VI and VIII–IX, division II of Public Law 104–333 and is to remain available until September 30, 1999.</content> </appropriations> <appropriations level="small"> <heading>historic preservation fund</heading> <content>For expenses necessary in carrying out the Historic Preservation Act of 1966, as amended (16 U.S.C. 470), and the Omnibus Parks and Public Lands Management Act of 1996 (Public Law 104–333), $40,812,000, to be derived from the Historic Preservation Fund, to remain available until September 30, 1999, of which $4,200,000 pursuant to section 507 of Public Law 104–333 shall remain available until expended.<page identifier="/us/stat/111/1550">111 STAT. 1550</page></content> </appropriations> <appropriations level="small"> <heading>construction</heading> <content>For construction, improvements, repair or replacement of physical facilities, including the modifications authorized by section 104 of the Everglades National Park Protection and Expansion Act of 1989, $214,901,000, to remain available until expended: <proviso><i>Provided,</i> That $500,000 for the Rutherford B. Hayes Home; $600,000 for the Sotterly Plantation House; $500,000 for the Darwin Martin House in Buffalo, New York; $500,000 for the Penn Center, South Carolina; and $1,000,000 for the Vietnam Veterans Museum in Chicago, Illinois shall be derived from the Historic Preservation Fund pursuant to 16 U.S.C. 470a:</proviso> <proviso><i>Provided further,</i> That $3,000,000 for the Hispanic Cultural Center, New Mexico, is subject to authorization:</proviso> <proviso><i>Provided further,</i> That none of the funds provided in this Act may be used to relocate the Brooks River Lodge in Katmai National Park and Preserve from its current physical location.</proviso></content> </appropriations> <appropriations level="small"> <heading>land and water conservation fund</heading> <subheading>(rescission)</subheading> <content><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s460l–10a">16 USC 460<i>l</i>–10a note</ref>.</p></sidenote>The contract authority provided for fiscal year 1998 by 16 U.S.C. 460l–10a is rescinded.</content> </appropriations> <appropriations level="small"> <heading>land acquisition and state assistance</heading> <content>For expenses necessary to carry out the Land and Water Conservation Fund Act of 1965, as amended (16 U.S.C. 460l–4 through 11), including administrative expenses, and for acquisition of lands or waters, or interest therein, in accordance with statutory authority applicable to the National Park Service, $143,290,000, to be derived from the Land and Water Conservation Fund, to remain available until expended, of which $1,000,000 is to administer the State assistance program: <proviso><i>Provided,</i> That any funds made available for the purpose of acquisition of the Elwha and Glines dams shall be used solely for acquisition, and shall not be expended until the full purchase amount has been appropriated by the Congress:</proviso> <proviso><i>Provided further,</i> That from the funds made available for land acquisition at Everglades National Park and Big Cypress National Preserve, the Secretary may provide for Federal assistance to the State of Florida for the acquisition of lands or waters, or interests therein, within the Everglades watershed (consisting of lands and waters within the boundaries of the South Florida Water Management District, Florida Bay and the Florida Keys) under terms and conditions deemed necessary by the Secretary, to improve and restore the hydrological function of the Everglades watershed:</proviso> <proviso><i>Provided further,</i> That the Secretary may provide such funds to the State of Florida for acquisitions within Stormwater Treatment Area 1–E, including reimbursement for lands or waters, or interests therein, within Stormwater Treatment Area 1–E acquired by the State of Florida prior to the enactment of this Act:</proviso> <proviso><i>Provided further,</i> That funds provided under this heading to the State of Florida shall be subject to an agreement that such lands will be managed in perpetuity for the restoration of the Everglades.</proviso><page identifier="/us/stat/111/1551">111 STAT. 1551</page></content> </appropriations> <appropriations level="small"> <heading>administrative provisions</heading> <content><p class="indent0 fontsize10">Appropriations for the National Park Service shall be available for the purchase of not to exceed 396 passenger motor vehicles, of which 302 shall be for replacement only, including not to exceed 315 for police-type use, 13 buses, and 6 ambulances: <proviso><i>Provided,</i> That none of the funds appropriated to the National Park Service may be used to process any grant or contract documents which do not include the text of 18 U.S.C. 1913:</proviso> <proviso><i>Provided further,</i> That none of the funds appropriated to the National Park Service may be used to implement an agreement for the redevelopment of the southern end of Ellis Island until such agreement has been submitted to the Congress and shall not be implemented prior to the expiration of 30 calendar days (not including any day in which either House of Congress is not in session because of adjournment of more than three calendar days to a day certain) from the receipt by the Speaker of the House of Representatives and the President of the Senate of a full and comprehensive report on the development of the southern end of Ellis Island, including the facts and circumstances relied upon in support of the proposed project.</proviso></p> <p class="indent0 fontsize10">None of the funds in this Act may be spent by the National Park Service for activities taken in direct response to the United Nations Biodiversity Convention.</p> <p class="indent0 fontsize10">The National Park Service may distribute to operating units based on the safety record of each unit the costs of programs designed to improve workplace and employee safety, and to encourage employees receiving workers’ compensation benefits pursuant to chapter 81 of title 5, United States Code, to return to appropriate positions for which they are medically able.</p> </content></appropriations> </appropriations> <appropriations level="intermediate"> <heading>United States Geological Survey</heading> <appropriations level="small"> <heading>surveys, investigations, and research</heading> <content>For expenses necessary for the United States Geological Survey to perform surveys, investigations, and research covering topography, geology, hydrology, and the mineral and water resources of the United States, its territories and possessions, and other areas as authorized by 43 U.S.C. 31, 1332, and 1340; classify lands as to their mineral and water resources; give engineering supervision to power permittees and Federal Energy Regulatory Commission licensees; administer the minerals exploration program (30 U.S.C. 641); and publish and disseminate data relative to the foregoing activities; and to conduct inquiries into the economic conditions affecting mining and materials processing industries (30 U.S.C. 3, 21a, and 1603; 50 U.S.C. 98g(1)) and related purposes as authorized by law and to publish and disseminate data; $759,160,000 of which $66,231,000 shall be available only for cooperation with States or municipalities for water resources investigations; and of which $16,400,000 shall remain available until expended for conducting inquiries into the economic conditions affecting mining and materials processing industries; and of which $2,000,000 shall remain available until expended for development of a mineral and geologic database; and of which $145,159,000 shall be available until September 30, 1999 for the biological research activity and the operation of the Cooperative Research Units: <proviso><i>Provided,</i> That none of these funds provided for the biological research activity shall be used to conduct new surveys on private <page identifier="/us/stat/111/1552">111 STAT. 1552</page>property, unless specifically authorized in writing by the property <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t43/s50">43 USC 50</ref>.</p></sidenote>owner:</proviso> <proviso><i>Provided further,</i> That no part of this appropriation shall be used to pay more than one-half the cost of topographic mapping or water resources data collection and investigations carried on in cooperation with States and municipalities.</proviso></content> </appropriations> <appropriations level="small"> <heading>administrative provisions</heading> <content>The amount appropriated for the United States Geological Survey shall be available for the purchase of not to exceed 53 passenger motor vehicles, of which 48 are for replacement only; reimbursement to the General Services Administration for security guard services; contracting for the furnishing of topographic maps and for the making of geophysical or other specialized surveys when it is administratively determined that such procedures are in the public interest; construction and maintenance of necessary buildings and appurtenant facilities; acquisition of lands for gauging stations and observation wells; expenses of the United States National Committee on Geology; and payment of compensation and expenses of persons on the rolls of the Survey duly appointed to represent the United States in the negotiation and administration of interstate compacts: <proviso><i>Provided,</i> That activities funded by appropriations herein made may be accomplished through the use of contracts, grants, or cooperative agreements as defined in 31 U.S.C. 6302 et seq.:</proviso> <proviso><i>Provided further,</i> That the United States Geological Survey may contract directly with individuals or indirectly with institutions or nonprofit organizations, without regard to section 41 U.S.C. 5, for the temporary or intermittent services of science students or recent graduates, who shall be considered employees for the purposes of chapter 81 of title 5, United States Code, relating to compensation for work injuries, and chapter 171 of title 28, United States Code, relating to tort claims, but shall not be considered to be Federal employees for any other purposes.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Minerals Management Service</heading> <appropriations level="small"> <heading>royalty and offshore minerals management</heading> <content>For expenses necessary for minerals leasing and environmental studies, regulation of industry operations, and collection of royalties, as authorized by law; for enforcing laws and regulations applicable to oil, gas, and other minerals leases, permits, licenses and operating contracts; and for matching grants or cooperative agreements; including the purchase of not to exceed eight passenger motor vehicles for replacement only; $137,521,000, of which not less than $68,574,000 shall be available for royalty management activities; and an amount not to exceed $65,000,000, to be credited to this appropriation and to remain available until expended, from additions to receipts resulting from increases to rates in effect on August 5, 1993, from rate increases to fee collections for Outer Continental Shelf administrative activities performed by the Minerals Management Service over and above the rates in effect on September 30, 1993, and from additional fees for Outer Continental Shelf administrative activities established after September 30, 1993: <proviso><i>Provided,</i> That $3,000,000 for computer acquisitions shall remain available until September 30, 1999: <i>Provided further,</i> That funds appropriated under this Act shall be available for the payment of interest in accordance with 30 U.S.C. 1721(b) and (d):</proviso> <proviso><i>Provided</i> <page identifier="/us/stat/111/1553">111 STAT. 1553</page><i>further,</i> That not to exceed $3,000 shall be available for reasonable expenses related to promoting volunteer beach and marine cleanup activities:</proviso> <i>Provided further,</i> That notwithstanding any other provision of law, $15,000 under this heading shall be available for refunds of overpayments in connection with certain Indian leases in which the Director of the Minerals Management Service concurred with the claimed refund due, to pay amounts owed to Indian allottees or tribes, or to correct prior unrecoverable erroneous payments.</content> </appropriations> <appropriations level="small"> <heading>oil spill research</heading> <content>For necessary expenses to carry out title I, section 1016, title IV, sections 4202 and 4303, title VII, and title VIII, section 8201 of the Oil Pollution Act of 1990, $6,118,000, which shall be derived from the Oil Spill Liability Trust Fund, to remain available until expended.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Office of Surface Mining Reclamation and Enforcement</heading> <appropriations level="small"> <heading>regulation and technology</heading> <content>For necessary expenses to carry out the provisions of the Surface Mining Control and Reclamation Act of 1977, Public Law 95–87, as amended, including the purchase of not to exceed 10 passenger motor vehicles, for replacement only; $94,937,000, and notwithstanding 31 U.S.C. 3302, an additional amount shall be credited to this account, to remain available until expended, from performance bond forfeitures in fiscal year 1998: <proviso><i>Provided,</i> That the Secretary of the Interior, pursuant to regulations, may utilize directly or through grants to States, moneys collected in fiscal year 1998 for civil penalties assessed under section 518 of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1268), to reclaim lands adversely affected by coal mining practices after August 3, 1977, to remain available until expended:</proviso> <proviso><i>Provided further,</i> That appropriations for the Office of Surface Mining Reclamation<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t30/s1211">30 USC 1211 note</ref>.</p></sidenote> and Enforcement may provide for the travel and per diem expenses of State and tribal personnel attending Office of Surface Mining Reclamation and Enforcement sponsored training.</proviso></content> </appropriations> <appropriations level="small"> <heading>abandoned mine reclamation fund</heading> <content>For necessary expenses to carry out title IV of the Surface Mining Control and Reclamation Act of 1977, Public Law 95–87, as amended, including the purchase of not more than 10 passenger motor vehicles for replacement only, $177,624,000, to be derived from receipts of the Abandoned Mine Reclamation Fund and to remain available until expended; of which up to $5,000,000 shall be for supplemental grants to States for the reclamation of abandoned sites with acid mine rock drainage from coal mines through the Appalachian Clean Streams Initiative: <proviso><i>Provided,</i> That grants to minimum program States will be $1,500,000 per State in fiscal year 1998:</proviso> <proviso><i>Provided further,</i> That of the funds herein provided up to $18,000,000 may be used for the emergency program authorized by section 410 of Public Law 95–87, as amended, of which no more than 25 percent shall be used for emergency reclamation projects in any one State and funds for federally administered emergency reclamation projects under this proviso shall not exceed <page identifier="/us/stat/111/1554">111 STAT. 1554</page>$11,000,000:</proviso> <proviso><i>Provided further,</i> That prior year unobligated funds appropriated for the emergency reclamation program shall not be subject to the 25 percent limitation per State and may be used without fiscal year limitation for emergency projects:</proviso> <proviso><i>Provided further,</i> That pursuant to Public Law 97–365, the Department of the Interior is authorized to use up to 20 percent from the recovery of the delinquent debt owed to the United States Government to pay for contracts to collect these debts: <i>Provided further,</i> That funds made available to States under title IV of Public Law 9587 may be used, at their discretion, for any required non-Federal share of the cost of projects funded by the Federal Government for the purpose of environmental restoration related to treatment or abatement of acid mine drainage from abandoned mines:</proviso> <proviso><i>Provided further,</i> That such projects must be consistent with the purposes and priorities of the Surface Mining Control and Reclamation Act:</proviso> <proviso><i>Provided further,</i> That the State of Maryland may set aside the greater of $1,000,000 or 10 percent of the total of the grants made available to the State under title IV of the Surface Mining Control and Reclamation Act of 1977, as amended (30 U.S.C. 1231 et seq.), if the amount set aside is deposited in an acid mine drainage abatement and treatment fund established under a State law, pursuant to which law the amount (together with all interest earned on the amount) is expended by the State to undertake acid mine drainage abatement and treatment projects, except that before any amounts greater than 10 percent of its title IV grants are deposited in an acid mine drainage abatement and treatment fund, the State of Maryland must first complete all Surface Mining Control and Reclamation Act priority one projects.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Bureau of Indian Affairs</heading> <appropriations level="small"> <heading>operation of indian programs</heading> <content>For operation of Indian programs by direct expenditure, contracts, cooperative agreements, compacts, and grants including expenses necessary to provide education and welfare services for Indians, either directly or in cooperation with States and other organizations, including payment of care, tuition, assistance, and other expenses of Indians in boarding homes, or institutions, or schools; grants and other assistance to needy Indians; maintenance of law and order; management, development, improvement, and protection of resources and appurtenant facilities under the jurisdiction of the Bureau, including payment of irrigation assessments and charges; acquisition of water rights; advances for Indian industrial and business enterprises; operation of Indian arts and crafts shops and museums; development of Indian arts and crafts, as authorized by law; for the general administration of the Bureau, including such expenses in field offices; maintaining of Indian reservation roads as defined in 23 U.S.C. 101; and construction, repair, and improvement of Indian housing, $1,528,588,000, to remain available until September 30, 1999 except as otherwise provided herein, of which not to exceed $93,825,000 shall be for welfare assistance payments and not to exceed $105,829,000 shall be for payments to tribes and tribal organizations for contract support costs associated with ongoing contracts or grants or compacts entered into with the Bureau prior to fiscal year 1998, as authorized by the Indian Self-Determination Act of 1975, as amended, and up to $5,000,000 shall be for the Indian Self-Determination Fund, <page identifier="/us/stat/111/1555">111 STAT. 1555</page>which shall be available for the transitional cost of initial or expanded tribal contracts, grants, compacts, or cooperative agreements with the Bureau under such Act; and of which not to exceed $374,290,000 for school operations costs of Bureau-funded schools and other education programs shall become available on July 1, 1998, and shall remain available until September 30, 1999; and of which not to exceed $55,949,000 shall remain available until expended for housing improvement, road maintenance, attorney fees, litigation support, self-governance grants, the Indian SelfDetermination Fund, land records improvements and the Navajo-Hopi Settlement Program: <proviso><i>Provided,</i> That tribes and tribal contractors may use their tribal priority allocations for unmet indirect costs of ongoing contracts, grants or compact agreements and for unmet welfare assistance costs:</proviso> <proviso><i>Provided further,</i> That funds made available to tribes and tribal organizations through contracts, compact agreements, or grants obligated during fiscal years 1998 and 1999, as authorized by the Indian Self-Determination Act of 1975, or grants authorized by the Indian Education Amendments of 1988 (25 U.S.C. 2001 and 2008A) shall remain available until expended by the contractor or grantee:</proviso> <proviso><i>Provided further,</i> That to provide funding uniformity within a Self-Governance Compact, any funds provided in this Act with availability for more than two years may be reprogrammed to two year availability but shall remain available within the Compact until expended:</proviso> <proviso><i>Provided further,</i> That notwithstanding any other provision of law, Indian tribal governments may, by appropriate changes in eligibility criteria or by other means, change eligibility for general assistance or change the amount of general assistance payments for individuals within the service area of such tribe who are otherwise deemed eligible for general assistance payments so long as such changes are applied in a consistent manner to individuals similarly situated:</proviso> <proviso><i>Provided further,</i> That any savings realized by such changes shall be available for use in meeting other priorities of the tribes:</proviso> <proviso><i>Provided further,</i> That any net increase in costs to the Federal Government which result solely from tribally increased payment levels for general assistance shall be met exclusively from funds available to the tribe from within its tribal priority allocation:</proviso> <proviso><i>Provided further,</i> That any forestry funds allocated to a tribe which remain unobligated as of September 30, 1998, may be transferred during fiscal year 1999 to an Indian forest land assistance account established for the benefit of such tribe within the tribe’s trust fund account:</proviso> <proviso><i>Provided further,</i> That any such unobligated balances not<sidenote><p class="indent0 firstIndent0 fontsize8">Expiration date.</p></sidenote> so transferred shall expire on September 30, 1999:</proviso> <proviso><i>Provided further,</i> That notwithstanding any other provision of law, no funds available to the Bureau, other than the amounts provided herein for assistance to public schools under 25 U.S.C. 452 et seq., shall be available to support the operation of any elementary or secondary school in the State of Alaska in fiscal year 1998:</proviso> <proviso><i>Provided further,</i> That funds made available in this or any other Act for expenditure through September 30, 1999 for schools funded by the Bureau shall be available only to the schools in the Bureau school system as of September 1, 1996:</proviso> <proviso><i>Provided further,</i> That no funds available to the Bureau shall be used to support expanded grades for any school or dormitory beyond the grade structure in place or approved by the Secretary of the Interior at each school in the Bureau<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t25/s2012">25 USC 2012 note</ref>.</p></sidenote> school system as of October 1, 1995:</proviso> <proviso><i>Provided further,</i> That beginning in fiscal year 1998 and thereafter and notwithstanding 25 <page identifier="/us/stat/111/1556">111 STAT. 1556</page>U.S.C. 2012(h)(1)(B), when the rates of basic compensation for teachers and counselors at Bureau-operated schools are established at the rates of basic compensation applicable to comparable positions in overseas schools under the Defense Department Overseas Teachers Pay and Personnel Practices Act, such rates shall become effective with the start of the next academic year following the issuance of the Department of Defense salary schedule and shall not be effected retroactively:</proviso> <proviso><i>Provided further,</i> That the Cibecue Community School may use prior year school operations funds for the construction of a new high school facility which is in compliance with 25 U.S.C. 2005(a) provided that any additional construction costs for replacement of such facilities begun with prior year funds shall be completed exclusively with non-Federal funds:</proviso> <proviso><i>Provided further,</i> That tribes may use tribal priority allocations funds for the replacement and repair of school facilities which are in compliance with 25 U.S.C. 2005(a), so long as such replacement or repair is approved by the Secretary and completed with non-Federal tribal and/or tribal priority allocations funds.</proviso></content> </appropriations> <appropriations level="small"> <heading>construction</heading> <content>For construction, major repair, and improvement of irrigation and power systems, buildings, utilities, and other facilities, including architectural and engineering services by contract; acquisition of lands, and interests in lands; and preparation of lands for farming, and for construction of the Navajo Indian Irrigation Project pursuant to Public Law 87–483, $125,051,000, to remain available until expended: <proviso><i>Provided,</i> That such amounts as may be available for the construction of the Navajo Indian Irrigation Project may be transferred to the Bureau of Reclamation:</proviso> <proviso><i>Provided further,</i> That not to exceed 6 percent of contract authority available to the Bureau of Indian Affairs from the Federal Highway Trust Fund may be used to cover the road program management costs of the Bureau:</proviso> <proviso><i>Provided further,</i> That any funds provided for the Safety of Dams program pursuant to 25 U.S.C. 13 shall be made available on a nonreimbursable basis:</proviso> <proviso><i>Provided further,</i> That for fiscal year 1998, in implementing new construction or facilities improvement and repair project grants in excess of $100,000 that are provided to tribally controlled grant schools under Public Law 100–297, as amended, the Secretary of the Interior shall use the Administrative and Audit Requirements and Cost Principles for Assistance Programs contained in 43 CFR part 12 as the regulatory requirements:</proviso> <proviso><i>Provided further,</i> That such grants shall not be subject to section 12.61 of 43 CFR; the Secretary and the grantee shall negotiate and determine a schedule of payments for the work to be performed:</proviso> <proviso><i>Provided further,</i> That in considering applications, the Secretary shall consider whether the Indian tribe or tribal organization would be deficient in assuring that the construction projects conform to applicable building standards and codes and Federal, tribal, or State health and safety standards as required by 25 U.S.C. 2005(a), with respect to organizational and financial management capabilities:</proviso> <proviso><i>Provided further,</i> That if the Secretary declines an application, the Secretary shall follow the requirements contained in 25 U.S.C. 2505(f): <i>Provided further,</i> That any disputes between the Secretary and any grantee concerning a grant shall be subject to the disputes provision in 25 U.S.C. 2508(e).</proviso><page identifier="/us/stat/111/1557">111 STAT. 1557</page></content> </appropriations> <appropriations level="small"> <heading>indian land and water claim settlements and miscellaneous payments to indians</heading> <content>For miscellaneous payments to Indian tribes and individuals and for necessary administrative expenses, $43,352,000, to remain available until expended; of which $42,000,000 shall be available for implementation of enacted Indian land and water claim settlements pursuant to Public Laws 101–618, 102–374, and 102–575, and for implementation of other enacted water rights settlements, including not to exceed $8,000,000, which shall be for the Federal share of the Catawba Indian Tribe of South Carolina Claims Settlement, as authorized by section 5(a) of Public Law 103–116; and of which $1,352,000 shall be available pursuant to Public Laws 99–264, 100–383, 103–402, and 100–580: <proviso><i>Provided,</i> That the Secretary is directed to sell land and interests in land, other than surface water rights, acquired in conformance with section 2 of the Truckee River Water Quality Settlement Agreement, the receipts of which shall be deposited to the Lahontan Valley and Pyramid Lake Fish and Wildlife Fund, and be available for the purposes of section 2 of such agreement, without regard to the limitation on the distribution of benefits in the second sentence of paragraph 206(f)(2) of Public Law 101–618.</proviso></content> </appropriations> <appropriations level="small"> <heading>indian guaranteed loan program account</heading> <content><p class="indent0 fontsize10">For the cost of guaranteed loans, $4,500,000, as authorized by the Indian Financing Act of 1974, as amended: <proviso><i>Provided,</i> That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974:</proviso> <proviso><i>Provided further,</i> That these funds are available to subsidize total loan principal, any part of which is to be guaranteed, not to exceed $34,615,000.</proviso></p> <p class="indent0 fontsize10">In addition, for administrative expenses to carry out the guaranteed loan programs, $500,000.</p> </content></appropriations> <appropriations level="small"> <heading>administrative provisions</heading> <content><p class="indent0 fontsize10">Appropriations for the Bureau of Indian Affairs (except the revolving fund for loans, the Indian loan guarantee and insurance fund, the Technical Assistance of Indian Enterprises account, the Indian Direct Loan Program account, and the Indian Guaranteed Loan Program account) shall be available for expenses of exhibits, and purchase of not to exceed 229 passenger motor vehicles, of which not to exceed 187 shall be for replacement only.</p> <p class="indent0 fontsize10">Notwithstanding any other provision of law, no funds available to the Bureau of Indian Affairs for central office operations or pooled overhead general administration shall be available for tribal contracts, grants, compacts, or cooperative agreements with the Bureau of Indian Affairs under the provisions of the Indian SelfDetermination Act or the Tribal Self-Governance Act of 1994 (Public Law 103–413).<page identifier="/us/stat/111/1558">111 STAT. 1558</page></p> </content></appropriations> </appropriations> <appropriations level="intermediate"> <heading>Departmental Offices</heading> <subheading>Insular Affairs</subheading> <appropriations level="small"> <heading>assistance to territories</heading> <content>For expenses necessary for assistance to territories under the jurisdiction of the Department of the Interior, $67,514,000, of which: (1) $63,665,000 shall be available until expended for technical assistance, including maintenance assistance, disaster assistance, insular management controls, and brown tree snake control and research; grants to the judiciary in American Samoa for compensation and expenses, as authorized by law (48 U.S.C. 1661(c)); grants to the Government of American Samoa, in addition to current local revenues, for construction and support of governmental functions; grants to the Government of the Virgin Islands as authorized by law; grants to the Government of Guam, as authorized by law; and grants to the Government of the Northern Mariana Islands as authorized by law (Public Law 94–241; 90 Stat. 272); and (2) $3,849,000 shall be available for salaries and expenses of the Office <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t48/s1469b">48 USC 1469b</ref>.</p></sidenote>of Insular Affairs: <proviso><i>Provided,</i> That all financial transactions of the territorial and local governments herein provided for, including such transactions of all agencies or instrumentalities established or utilized by such governments, may be audited by the General Accounting Office, at its discretion, in accordance with chapter 35 of title 31, United States Code:</proviso> <proviso><i>Provided further,</i> That Northern Mariana Islands Covenant grant funding shall be provided according to those terms of the Agreement of the Special Representatives on Future United States Financial Assistance for the Northern Mariana Islands approved by Public Law 99–396, or any subsequent legislation related to Commonwealth of the Northern Mariana Islands grant funding:</proviso> <proviso><i>Provided further,</i> That of the amounts provided for technical assistance, sufficient funding shall be made available for a grant to the Close Up Foundation:</proviso> <proviso><i>Provided further,</i> That the funds for the program of operations and maintenance improvement are appropriated to institutionalize routine operations and maintenance improvement of capital infrastructure in American Samoa, Guam, the Virgin Islands, the Commonwealth of the Northern Mariana Islands, the Republic of Palau, the Republic of the Marshall Islands, and the Federated States of Micronesia through assessments of long-range operations maintenance needs, improved capability of local operations and maintenance institutions and agencies (including management and vocational education training), and project-specific maintenance (with territorial participation and cost sharing to be determined by the Secretary based on the individual territory’s commitment to timely maintenance of its capital assets):</proviso> <proviso><i>Provided further,</i> That any appropriation for disaster assistance under this heading in this Act or previous appropriations Acts may be used as non-Federal matching funds for the purpose of hazard mitigation grants provided pursuant to section 404 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170c).</proviso></content> </appropriations> <appropriations level="small"> <heading>compact of free association</heading> <content>For economic assistance and necessary expenses for the Federated States of Micronesia and the Republic of the Marshall Islands as provided for in sections 122, 221, 223, 232, and 233 of the <page identifier="/us/stat/111/1559">111 STAT. 1559</page>Compact of Free Association, and for economic assistance and necessary expenses for the Republic of Palau as provided for in sections 122, 221, 223, 232, and 233 of the Compact of Free Association, $20,545,000, to remain available until expended, as authorized by Public Law 99–239 and Public Law 99–658.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Departmental Management</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses for management of the Department of the Interior, $58,286,000, of which not to exceed $8,500 may be for official reception and representation expenses, and of which up to $1,200,000 shall be available for workers compensation payments and unemployment compensation payments associated with the orderly closure of the United States Bureau of Mines.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Office of the Solicitor</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Office of the Solicitor, $35,443,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Office of Inspector General</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Office of Inspector General, $24,500,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Indian Gaming Commission</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the National Indian Gaming Commission, pursuant to Public Law 100–497, $1,000,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Office of Special Trustee for American Indians</heading> <appropriations level="small"> <heading>federal trust programs</heading> <content>For operation of trust programs for Indians by direct expenditure, contracts, cooperative agreements, compacts, and grants, $33,907,000, to remain available until expended: <proviso><i>Provided,</i> That funds for trust management improvements may be transferred to the Bureau of Indian Affairs: <i>Provided further,</i> That funds made available to tribes and tribal organizations through contracts or grants obligated during fiscal year 1998, as authorized by the Indian Self-Determination Act of 1975 (25 U.S.C. 450 et seq.), shall remain available until expended by the contractor or grantee:</proviso> <proviso><i>Provided further,</i> That notwithstanding any other provision of law, the statute of limitations shall not commence to run on any claim, including any claim in litigation pending on the date of the enactment of this Act, concerning losses to or mismanagement of trust funds, until the affected tribe or individual Indian has been furnished with an accounting of such funds from which the beneficiary can determine whether there has been a loss.</proviso><page identifier="/us/stat/111/1560">111 STAT. 1560</page></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Administrative Provisions</heading> <content>There is hereby authorized for acquisition from available resources within the Working Capital Fund, 15 aircraft, 10 of which shall be for replacement and which may be obtained by donation, purchase or through available excess surplus property: <proviso><i>Provided,</i> That notwithstanding any other provision of law, existing aircraft being replaced may be sold, with proceeds derived or trade-in value used to offset the purchase price for the replacement aircraft:</proviso> <proviso><i>Provided further,</i> That no programs funded with appropriated funds in the “Departmental Management”, “Office of the Solicitor”, and “Office of Inspector General” may be augmented through the Working Capital Fund or the Consolidated Working Fund.</proviso></content> </appropriations> <level> <heading class="centered">GENERAL PROVISIONS, DEPARTMENT OF THE INTERIOR</heading> <section> <num value="101"><inline class="smallCaps">Sec</inline>. 101. </num><content class="inline">Appropriations made in this title shall be available for expenditure or transfer (within each bureau or office), with the approval of the Secretary, for the emergency reconstruction, replacement, or repair of aircraft, buildings, utilities, or other facilities or equipment damaged or destroyed by fire, flood, storm, or other unavoidable causes: <proviso><i>Provided,</i> That no funds shall be made available under this authority until funds specifically made available to the Department of the Interior for emergencies shall have been exhausted:</proviso> <proviso><i>Provided further,</i> That all funds used pursuant to this section are hereby designated by Congress to be “emergency requirements” pursuant to section 251(b)(2)(D) of the Balanced Budget and Emergency Deficit Control Act of 1985, and must be replenished by a supplemental appropriation which must be requested as promptly as possible.</proviso></content> </section> <section> <num value="102"><inline class="smallCaps">Sec</inline>. 102. </num><content class="inline">The Secretary may authorize the expenditure or transfer of any no year appropriation in this title, in addition to the amounts included in the budget programs of the several agencies, for the suppression or emergency prevention of forest or range fires on or threatening lands under the jurisdiction of the Department of the Interior; for the emergency rehabilitation of burned-over lands under its jurisdiction; for emergency actions related to potential or actual earthquakes, floods, volcanoes, storms, or other unavoidable causes; for contingency planning subsequent to actual oilspills; response and natural resource damage assessment activities related to actual oilspills; for the prevention, suppression, and control of actual or potential grasshopper and Mormon cricket outbreaks on lands under the jurisdiction of the Secretary, pursuant to the authority in section 1773(b) of Public Law 99–198 (99 Stat. 1658); for emergency reclamation projects under section 410 of Public Law 95–87; and shall transfer, from any no year funds available to the Office of Surface Mining Reclamation and Enforcement, such funds as may be necessary to permit assumption of regulatory authority in the event a primacy State is not carrying out the regulatory provisions of the Surface Mining Act: <proviso><i>Provided,</i> That appropriations made in this title for fire suppression purposes shall be available for the payment of obligations incurred during the preceding fiscal year, and for reimbursement to other Federal agencies for destruction of vehicles, aircraft, or other equipment in connection with their use for fire suppression purposes, such reimbursement to be credited to appropriations currently available at the time of receipt thereof:</proviso> <proviso><i>Provided further,</i> <page identifier="/us/stat/111/1561">111 STAT. 1561</page>That for emergency rehabilitation and wildfire suppression activities, no funds shall be made available under this authority until funds appropriated to “Wildland Fire Management” shall have been exhausted:</proviso> <proviso><i>Provided further,</i> That all funds used pursuant to this section are hereby designated by Congress to be “emergency requirements” pursuant to section 251(b)(2)(D) of the Balanced Budget and Emergency Deficit Control Act of 1985, and must be replenished by a supplemental appropriation which must be requested as promptly as possible:</proviso> <proviso><i>Provided further,</i> That such replenishment funds shall be used to reimburse, on a pro rata basis, accounts from which emergency funds were transferred.</proviso></content> </section> <section> <num value="103"><inline class="smallCaps">Sec</inline>. 103. </num><content class="inline">Appropriations made in this title shall be available for operation of warehouses, garages, shops, and similar facilities, wherever consolidation of activities will contribute to efficiency or economy, and said appropriations shall be reimbursed for services rendered to any other activity in the same manner as authorized by sections 1535 and 1536 of title 31, United States Code: <proviso><i>Provided,</i> That reimbursements for costs and supplies, materials, equipment, and for services rendered may be credited to the appropriation current at the time such reimbursements are received.</proviso></content> </section> <section> <num value="104"><inline class="smallCaps">Sec</inline>. 104. </num><content class="inline">Appropriations made to the Department of the Interior in this title shall be available for services as authorized by 5 U.S.C. 3109, when authorized by the Secretary, in total amount not to exceed $500,000; hire, maintenance, and operation of aircraft; hire of passenger motor vehicles; purchase of reprints; payment for telephone service in private residences in the field, when authorized under regulations approved by the Secretary; and the payment of dues, when authorized by the Secretary, for library membership in societies or associations which issue publications to members only or at a price to members lower than to subscribers who are not members.</content> </section> <section> <num value="105"><inline class="smallCaps">Sec</inline>. 105. </num><content class="inline">Appropriations available to the Department of the Interior for salaries and expenses shall be available for uniforms or allowances therefor, as authorized by law (5 U.S.C. 5901–5902 and D.C. Code 4–204).</content> </section> <section> <num value="106"><inline class="smallCaps">Sec</inline>. 106. </num><content class="inline">Appropriations made in this title shall be available for obligation in connection with contracts issued for services or rentals for periods not in excess of twelve months beginning at any time during the fiscal year.</content> </section> <section> <num value="107"><inline class="smallCaps">Sec</inline>. 107. </num><content class="inline">In fiscal year 1998 and thereafter, for those years<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s460l–6a">16 USC 460<i>l</i>–6a note</ref>.</p></sidenote> in which the recreation fee demonstration program authorized in Public Law 104–134 is in effect, the fee collection support authority provided in 16 U.S.C. 460l–6(i))(1)(B) applies only to parks not included in the fee demonstration program, and that the amount retained under this authority to cover fee collection costs will not exceed those costs at the non-demonstration parks, or 15 percent of all fees collected at non-demonstration parks in a fiscal year whichever is less. Fee collection costs for parks included in the fee demonstration program will be covered by the fees retained at those parks.</content> </section> <section> <num value="108"><inline class="smallCaps">Sec</inline>. 108. </num><content class="inline">No funds provided in this title may be expended by the Department of the Interior for the conduct of offshore leasing and related activities placed under restriction in the President’s moratorium statement of June 26, 1990, in the areas of northern, central, and southern California; the North Atlantic; Washington and Oregon; and the eastern Gulf of Mexico south of 26 degrees north latitude and east of 86 degrees west longitude.<page identifier="/us/stat/111/1562">111 STAT. 1562</page></content> </section> <section> <num value="109"><inline class="smallCaps">Sec</inline>. 109. </num><content class="inline">No funds provided in this title may be expended by the Department of the Interior for the conduct of offshore oil and natural gas preleasing, leasing, and related activities, on lands within the North Aleutian Basin planning area.</content> </section> <section> <num value="110"><inline class="smallCaps">Sec</inline>. 110. </num><content class="inline">No funds provided in this title may be expended by the Department of the Interior to conduct offshore oil and natural gas preleasing, leasing and related activities in the eastern Gulf of Mexico planning area for any lands located outside Sale 181, as identified in the final Outer Continental Shelf 5-Year Oil and Gas Leasing Program, 1997–2002.</content> </section> <section> <num value="111"><inline class="smallCaps">Sec</inline>. 111. </num><content class="inline">No funds provided in this title may be expended by the Department of the Interior to conduct oil and natural gas preleasing, leasing and related activities in the Mid-Atlantic and South Atlantic planning areas.</content> </section> <section> <num value="112"><inline class="smallCaps">Sec</inline>. 112. </num><chapeau class="inline">Advance payments made under this title to Indian tribes, tribal organizations, and tribal consortia pursuant to the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450 et seq.) or the Tribally Controlled Schools Act of 1988 (25 U.S.C. 2501 et seq.) may be invested by the Indian tribe, tribal organization, or consortium before such funds are expended for the purposes of the grant, compact, or annual funding agreement so long as such funds are—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>invested by the Indian tribe, tribal organization, or consortium only in obligations of the United States, or in obligations or securities that are guaranteed or insured by the United States, or mutual (or other) funds registered with the Securities and Exchange Commission and which only invest in obligations of the United States or securities that are guaranteed or insured by the United States; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>deposited only into accounts that are insured by an agency or instrumentality of the United States, or are fully collateralized to ensure protection of the Funds, even in the event of a bank failure.</content></paragraph> </section> <section> <num value="113"><inline class="smallCaps">Sec</inline>. 113.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t50/s167">50 USC 167 note</ref>.</p></sidenote> <num value="a">(a) </num><subsection class="inline"><content>Employees of Helium Operations, Bureau of Land Management, entitled to severance pay under 5 U.S.C. 5595, may apply for, and the Secretary of the Interior may pay, the total amount of the severance pay to the employee in a lump sum. Employees paid severance pay in a lump sum and subsequently reemployed by the Federal Government shall be subject to the repayment provisions of 5 U.S.C. 5595(i)(2) and (3), except that any repayment shall be made to the Helium Fund.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><content>Helium Operations employees who elect to continue health benefits after separation shall be liable for not more than the required employee contribution under 5 U.S.C. 8905a(d)(1)(A). The Helium Fund shall pay for 18 months the remaining portion of required contributions.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><content>The Secretary of the Interior may provide for training to assist Helium Operations employees in the transition to other Federal or private sector jobs during the facility shut-down and disposition process and for up to 12 months following separation from Federal employment, including retraining and relocation incentives on the same terms and conditions as authorized for employees of the Department of Defense in section 348 of the National Defense Authorization Act for Fiscal Year 1995.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><content>For purposes of the annual leave restoration provisions of 5 U.S.C. 6304(d)(1)(B), the cessation of helium production and sales, and other related Helium Program activities shall be deemed <page identifier="/us/stat/111/1563">111 STAT. 1563</page>to create an exigency of public business under, and annual leave that is lost during leave years 1997 through 2001 because of, 5 U.S.C. 6304 (regardless of whether such leave was scheduled in advance) shall be restored to the employee and shall be credited and available in accordance with 5 U.S.C. 6304(d)(2). Annual leave so restored and remaining unused upon the transfer of a Helium Program employee to a position of the executive branch outside of the Helium Program shall be liquidated by payment to the employee of a lump sum from the Helium Fund for such leave.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><content>Benefits under this section shall be paid from the Helium Fund in accordance with section 4(c)(4) of the Helium Privatization Act of 1996. Funds may be made available to Helium Program employees who are or will be separated before October 1, 2002 because of the cessation of helium production and sales and other related activities. Retraining benefits, including retraining and relocation incentives, may be paid for retraining commencing on or before September 30, 2002.</content> </subsection> </section> <section> <num value="114"><inline class="smallCaps">Sec</inline>. 114. </num><content class="inline">None of the funds in this or previous appropriations Acts may be used to establish a new regional office in the United States Fish and Wildlife Service without the advance approval of the House and Senate Committees on Appropriations.</content> </section> <section> <num value="115"><inline class="smallCaps">Sec</inline>. 115. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Conveyance Requirement</inline>.—</heading><content>Within 90 days after<sidenote><p class="indent0 firstIndent0 fontsize8">West Virginia.</p></sidenote> the date of enactment of this Act, the Secretary of the Interior shall convey to the State of West Virginia without reimbursement, all right, title, and interest of the United States in and to the property described in subsection (b), for sole use by the Wildlife Resources Section of the West Virginia Division of Natural Resources, as part of the State of West Virginia fish culture program.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Property Described</inline>.—</heading><content>The property referred to in subsection (a) is the property known as the Bowden National Fish Hatchery, located on old United States Route 33, Randolph County, West Virginia, consisting of 44 acres (more or less), and all improvements and related personal property under the control of the Secretary that is located on that property, including buildings, structures, equipment, and all easements, leases, and water rights relating to that property.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Use and Reversionary Interest</inline>.—</heading><content>The property conveyed to the State of West Virginia pursuant to this section shall be used and operated solely by the Wildlife Resources Section of the West Virginia Division of Natural Resources for the purposes of fishery resources management and fisheries-related activities, and if it is used for any other purposes or by any other party other than the use authorized under subsection (a), all right, title, and interest in and to all property conveyed under this section shall revert to the United States. The State of West Virginia shall ensure that the property reverting to the United States is in substantially the same or better condition as at the time of transfer.</content> </subsection> </section> <section> <num value="116"><inline class="smallCaps">Sec</inline>. 116. </num><content class="inline">Section 115 of Public Law 103–332 is amended by<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t43/s1471f">43 USC 1471f</ref>.</p></sidenote> inserting after the word “title” the following: “or provided from other Federal agencies through reimbursable or other agreements pursuant to the Economy Act”.</content> </section> <section> <num value="117"><inline class="smallCaps">Sec</inline>. 117.</num> <content class="inline">The third proviso under the heading “Compact of Free Association” of Public Law 100–446 is amended by striking<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/102/1798">102 Stat. 1798</ref>.</p></sidenote> “$2,000,000” and inserting “<quotedText>$2,500,000</quotedText>” and by adding at the end of the proviso the following: “and commencing on October 1, 1998 and every year thereafter, this dollar amount shall be changed <page identifier="/us/stat/111/1564">111 STAT. 1564</page>to reflect any fluctuation occurring during the previous twelve (12) months in the Consumer Price Index, as determined by the Secretary of Labor”.</content> </section> <section> <num value="118"><inline class="smallCaps">Sec</inline>. 118. </num><chapeau class="inline">Any funds made available in this Act or any other Act for tribal priority allocations (hereafter in this section “TPA”) in excess of the funds expended for TPA in fiscal year 1997 (adjusted for fixed costs, internal transfers pursuant to other law, and proposed increases to formula-driven programs not included in tribes’ TPA base) shall only be available for distribution—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>to each tribe to the extent necessary to provide that tribe the minimum level of funding recommended by the Joint-Tribal/BIA/DOI Task Force on Reorganization of the Bureau of Indian Affairs Report of 1994 (hereafter “the 1994 Report”) not to exceed $160,000 per tribe; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>to the extent funds remain, such funds will be allocated according to the recommendations of a task force comprised of 2 designated Federal officials and 2 tribal representatives from each BIA area. These representatives shall be selected by the Secretary after considering a list of names of tribal leaders nominated and elected by the tribes in each area. The list of nominees shall be provided to the Secretary by October 31, 1997. If the tribes in an area fail to submit a list of nominees to the Secretary by October 31, 1997, the Secretary shall select representatives after consulting with the BIA. In determining the allocation of remaining funds, the Task Force shall consider the recommendations and principles contained in the 1994 Report. If the Task Force cannot agree on a distribution by January 31, 1998, the Secretary shall distribute the remaining funds based on the recommendations of a majority of Task Force members no later than February 28, 1998. If a majority recommendation cannot be reached, the Secretary in exercising his discretion shall distribute the remaining funds considering the recommendations of the Task Force members.</content></paragraph> </section> <section> <num value="119"><inline class="smallCaps">Sec</inline>. 119. </num><chapeau class="inline">Section 116 of the Omnibus Appropriations Act for Fiscal Year 1997 (Public Law 104–208; 110 Stat. 3009–201) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking “<quotedText>Miners Hospital Grant</quotedText>” each place it appears and inserting in lieu thereof “Miners Hospital Grants”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking “<quotedText>(February 20, 1929, 45 Stat. 1252)</quotedText>” each place it appears and inserting in lieu thereof “(July 16, 1894, 28 Stat. 110 and February 20, 1929, 45 Stat. 1252)”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by striking “<quotedText>(July 26, 1894, 28 Stat. 110)</quotedText>” each place it appears and inserting in lieu thereof “(July 16, 1894, 28 Stat. 110)”.</content></paragraph> </section> <section> <num value="120"><inline class="smallCaps">Sec</inline>. 120.</num><sidenote><p class="indent0 firstIndent0 fontsize8">Claims.</p><p class="indent0 firstIndent0 fontsize8">Mines and mining.</p></sidenote> <content class="inline">Notwithstanding any other provision of law, 90 days after enactment of this section there is hereby vested in the United States all right, title and interest in and to, and the right of immediate possession of, all patented mining claims and valid unpatented mining claims (including any unpatented claim whose validity is in dispute, so long as such validity is later established in accordance with applicable agency procedures) in the area known as the Kantishna Mining District within Denali National Park and Preserve, for which all current owners (or the bankruptcy trustee as provided hereafter) of each such claim (for unpatented claims, ownership as identified in recordations under the mining laws and regulations) consent to such vesting in writing to the <page identifier="/us/stat/111/1565">111 STAT. 1565</page>Secretary of the Interior within said 90-day period: <proviso><i>Provided,</i> That in the case of a mining claim in the Kantishna Mining District that is involved in a bankruptcy proceeding, where the bankruptcy trustee is a holder of an interest in such mining claim, such consent may only be provided and will be deemed timely for purposes of this section if the trustee applies within said 90-day period to the bankruptcy court or any other appropriate court for authority to sell the entire mining claim and to consent to the vesting of title to such claim in the United States pursuant to this section, and that in such event title in the entire mining claim shall vest in the United States 10 days after entry of an unstayed, final order or judgment approving the trustee’s application:</proviso> <proviso><i>Provided further,</i> That the United States shall pay just compensation to the aforesaid owners of any valid claims to which title has vested in the United States pursuant to this section, determined as of the date of taking:</proviso> <proviso><i>Provided further,</i> That payment shall be in the amount of a negotiated settlement of the value of such claim or the valuation of such claim awarded by judgment, and such payment, including any deposits in the registry of the court, shall be made solely from the permanent judgment appropriation established pursuant to section 1304 of title 31, United States Code, and shall include accrued interest on the amount of the agreed settlement value or the final judgment from the date of taking to the date of payment, calculated in accordance with section 258a of title 40, United States Code:</proviso> <proviso><i>Provided further,</i> That the United States or a claim owner or bankruptcy trustee may initiate proceedings after said 90-day period, but no later than six years after the date of enactment of this section, seeking a determination of just compensation in the District Court for the District of Alaska pursuant to the Declaration of Taking Act, sections 258a–e of title 40, United States Code (except where inconsistent with this section), and joining all owners of the claim:</proviso> <proviso><i>Provided further,</i> That when any such suit is instituted by the United States or the owner or bankruptcy trustee, the United States shall deposit as soon as possible in the registry of the court the estimated just compensation, in accordance with the procedures generally described in section 258a of title 40, United States Code, not otherwise inconsistent with this section:</proviso> <proviso><i>Provided further,</i> That in establishing any estimate for deposit in the court registry (other than an estimate based on an agency approved appraisal made prior to the date of enactment of this Act) the Secretary of the Interior shall permit the claim owner to present information to the Secretary on the value of the claim, including potential mineral value, and the Secretary shall consider such information and permit the claim owner to have a reasonable and sufficient opportunity to comment on such estimate:</proviso> <proviso><i>Provided further,</i> That the estimated just compensation deposited in the court registry shall be paid forthwith to the aforesaid owners upon application to the court:</proviso> <proviso><i>Provided further,</i> That any payment from the court registry to the aforesaid owners shall be deducted from any negotiated settlement or award by judgment:</proviso> <proviso><i>Provided further,</i> That the United States may not request the court to withhold any payment from the court registry for environmental remediation with respect to such claim:</proviso> <proviso><i>Provided further,</i> That the Secretary shall not allow any unauthorized use of claims acquired pursuant to this section after the date title vests in the United States pursuant to this section, and the Secretary shall permit the orderly termination of all operations on <page identifier="/us/stat/111/1566">111 STAT. 1566</page>the lands and the removal of equipment, facilities, and personal property by claim owners or bankruptcy trustee (as appropriate).</proviso></content> </section> <section> <num value="121"><inline class="smallCaps">Sec</inline>. 121. </num><content class="inline">Section 1034 of Public Law 104–333 (110 Stat. 4093, 4240) is amended by striking “<quotedText>at any time within 12 months of enactment of this Act</quotedText>” and inserting in lieu thereof “on or before October 1, 1998” and by inserting at the end of the section the following new sentence: “If such litigation is commenced, at the court trial, any party may introduce any relevant evidence bearing on the interpretation of the 1976 agreement.”.</content> </section> <section> <num value="122"><inline class="smallCaps">Sec</inline>. 122. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Kodiak Land Valuation</inline>.—</heading><content>Notwithstanding the Refuge Revenue Sharing Act (16 U.S.C. 715s) or any regulations implementing such Act, the fair market value for the initial computation of the payment to Kodiak Island Borough pursuant to such Act shall be based on the purchase price of the parcels acquired from Akhiok-Kaguyak, Incorporated, Koniag, Incorporated, and the Old Harbor Native Corporation for addition to the Kodiak National Wildlife Refuge.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Reappraisals</inline>.—</heading><content>The fair market value of the parcels described in subsection (a) shall be reappraised by the Alaska Region of the United States Fish and Wildlife Service under the Refuge Revenue Sharing Act (16 U.S.C. 715s). Any such reappraisals shall be made in accordance with such Act and any other applicable law and regulation, and shall be effective for any payments made in fiscal year 1999.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The fair market value computation required under subsection (a) shall be effective as of the date of the acquisition of the parcels described is such subsection.</content> </subsection> </section> <section> <num value="123"><inline class="smallCaps">Sec</inline>. 123. </num><heading><inline class="smallCaps">Assessment of Fees</inline>.</heading> <subsection class="inline"><num value="a">(a) </num><chapeau>Commission Funding.— Section 18(a) of the Indian Gaming Regulatory Act (25 U.S.C. 2717(a)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in paragraph (1), by striking “<quotedText>class II gaming activity</quotedText>” and inserting “<quotedText>gaming operation that conducts a class II or class III gaming activity</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>in paragraph (2)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>in subparagraph (A)(i), by striking “<quotedText>no less than 0.5 percent nor</quotedText>” and inserting “<quotedText>no</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>in subparagraph (B), by striking “<quotedText>$1,500,000</quotedText>” and inserting “<quotedText>$8,000,000</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t25/s2717">25 USC 2717 note</ref>.</p></sidenote> <content>nothing in subsection (a) of this section shall apply to self-regulated tribes such as the Mississippi Band of Choctaw.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Authorization of Appropriations</inline>.—</heading><chapeau>Section 19 of the Indian Gaming Regulatory Act (25 U.S.C. 2718) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subsection (a), by striking “<quotedText>such sums as may be necessary</quotedText>” and inserting “<quotedText>for fiscal year 1998, and for each fiscal year thereafter, an amount equal to the amount of funds derived from the assessments authorized by section 18(a) for the fiscal year immediately preceding the fiscal year involved,</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking subsection (b) and inserting the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><content>Notwithstanding section 18, there are authorized to be appropriated to fund the operation of the Commission, $2,000,000 for fiscal year 1998, and $2,000,000 for each fiscal year thereafter. The amounts authorized to be appropriated in the preceding sentence shall be in addition to the amounts authorized to be appropriated under subsection (a).”.<page identifier="/us/stat/111/1567">111 STAT. 1567</page></content> </subsection> </quotedContent> </content></paragraph> </subsection> </section> <section> <num value="124"><inline class="smallCaps">Sec</inline>. 124. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Priority of Bonds</inline>.—</heading><chapeau>Section 3 of Public Law 94–392 (90 Stat. 1193, 1195) is amended—<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t48/s1574c">48 USC 1574c</ref>.</p></sidenote></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking “<quotedText>priority for payment</quotedText>” and inserting “<quotedText>a parity lien with every other issue of bonds or other obligations issued for payment</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking “<quotedText>in the order of the date of issue</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Application</inline>.—</heading><content>The amendments made by subsection (a)<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t48/s1574c">48 USC 1574c</ref>.</p></sidenote> shall apply to obligations issued on or after the date of enactment of this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Short Term Borrowing</inline>.—</heading><content>Section 1 of Public Law 94392 (90 Stat. 1193) is amended by adding the following new<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t48/s1574a">48 USC 1574a</ref></p></sidenote> subsection at the end: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><content>The legislature of the Government of the Virgin Islands may cause to be issued notes in anticipation of the collection of the taxes and revenues for the current fiscal year. Such notes shall mature and be paid within one year from the date they are issued. No extension of such notes shall be valid and no additional notes shall be issued under this section until all notes issued during a preceding year shall have been paid.”.</content> </subsection> </quotedContent> </content></subsection> </section> <section> <num value="125"><inline class="smallCaps">Sec</inline>. 125. </num><subsection class="inline"><num value="a">(a) </num><chapeau>In this section—<sidenote><p class="indent0 firstIndent0 fontsize8">Kansas.</p></sidenote></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the term “Huron Cemetery” means the lands that form the cemetery that is popularly known as the Huron Cemetery, located in Kansas City, Kansas, as described in subsection (b)(3); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the term “Secretary” means the Secretary of the Interior.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><paragraph class="inline"><num value="1">(1) </num><content>The Secretary shall take such action as may be necessary to ensure that the lands comprising the Huron Cemetery (as described in paragraph (3)) are used only in accordance with this subsection.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>The lands of the Huron Cemetery shall be used only—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>for religious and cultural uses that are compatible with the use of the lands as a cemetery; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>as a burial ground.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content><p class="indent0 fontsize10">The description of the lands of the Huron Cemetery is as follows:</p> <p class="indent0 fontsize10">The tract of land in the NW ¼ of sec. 10, T. 11 S., R. 25 E., of the sixth principal meridian, in Wyandotte County, Kansas (as surveyed and marked on the ground on August 15, 1888, by William Millor, Civil Engineer and Surveyor), described as follows:</p> <quotedContent> <list> <listItem><listContent class="indent1 fontsize10 depth0">“Commencing on the Northwest corner of the Northwest Quarter of the Northwest Quarter of said Section 10;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Thence South 28 poles to the ‘true point of beginning’;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Thence South 71 degrees East 10 poles and 18 links;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Thence South 18 degrees and 30 minutes West 28 poles;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Thence West 11 and one-half poles;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Thence North 19 degrees 15 minutes East 31 poles and 15 feet to the ‘true point of beginning’, containing 2 acres or more.”.</listContent></listItem> </list> </quotedContent> </content></paragraph> </subsection> </section> <section> <num value="126"><inline class="smallCaps">Sec</inline>. 126. </num><heading><inline class="smallCaps">Arkansas Post National Memorial</inline>.—</heading><subsection class="inline"><num value="a">(a) </num><content>The<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s431">16 use 431 note</ref>.</p></sidenote> boundaries of the Arkansas Post National Memorial are revised to include the approximately 360 acres of land generally depicted on the map entitled “Arkansas Post National Memorial, Osotouy Unit, Arkansas County, Arkansas” and dated June 1993. Such <page identifier="/us/stat/111/1568">111 STAT. 1568</page>map shall be on file and available for public inspection in appropriate offices of the National Park Service of the Department of the Interior.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><content>The Secretary of the Interior is authorized to acquire the lands and interests therein described in subsection (a) by donation, purchase with donated or appropriated funds, or exchange: <proviso><i>Provided,</i> That such lands or interests therein may only be acquired with the consent of the owner thereof.</proviso></content> </subsection> </section> <section> <num value="127"><inline class="smallCaps">Sec</inline>. 127. </num><content class="inline">For the sole purpose of accessing park or other authorized visitor services or facilities at, or originating from, the public dock area at Bartlett Cove, the National Park Service shall initiate a competitive process by which the National Park Service shall allow one entry per day for a passenger ferry into Bartlett Cove from Juneau: <proviso><i>Provided,</i> That any passenger ferry allowed entry pursuant to this Act shall be subject to speed, distance from coast lines, and other limitations imposed necessary to protect park resources:</proviso> <proviso><i>Provided further,</i> That nothing in this Act shall be construed as constituting approval for entry into the waters of Glacier Bay National Park and Preserve beyond the immediate Bartlett Cove area as defined by a line extending northeastward from Point Carolus to the west to the southernmost point of Lester Island, absent required permits.</proviso></content> </section> <section> <num value="128"><inline class="smallCaps">Sec</inline>. 128.</num><sidenote><p class="indent0 firstIndent0 fontsize8">Petroleum and petroleum products.</p><p class="indent0 firstIndent0 fontsize8">Alaska.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s6508">42 USC 6508</ref>.</p></sidenote> <content class="inline">Title I of Public Law 96–514 (94 Stat. 2957) is amended under the heading “Exploration of National Petroleum Reserve in Alaska” by striking “<quotedText>(8) each lease shall be issued</quotedText>” through the end of the first paragraph and inserting in lieu thereof the following: “(8) each lease shall be issued for an initial period of ten years, and shall be extended for so long thereafter as oil or gas is produced from the lease in paying quantities, or as drilling or reworking operations, as approved by the Secretary, are conducted thereon; (9) for purposes of conservation of the natural resources of any oil or gas pool, field, or like area, or any part thereof, lessees thereof and their representatives are authorized to unite with each other, or jointly or separately with others, in collectively adopting and operating under a unit agreement for such pool, field, or like area, or any part thereof (whether or not any other part of said oil or gas pool, field, or like area is already subject to any cooperative or unit plan of development or operation), whenever determined by the Secretary to be necessary or advisable in the public interest. Drilling, production, and well reworking operations performed in accordance with a unit agreement shall be deemed to be performed for the benefit of all leases that are subject in whole or in part to such unit agreement. When separate tracts cannot be independently developed and operated in conformity with an established well spacing or development program, any lease, or a portion thereof, may be pooled with other lands, whether or not owned by the United States, under a communitization or drilling agreement providing for an apportionment of production or royalties among the separate tracts of land comprising the drilling or spacing unit when determined by the Secretary of the Interior to be in the public interest, and operations or production pursuant to such an agreement shall be deemed to be operations or production as to each such lease committed thereto; (10) to encourage the greatest ultimate recovery of oil or gas or in the interest of conservation the Secretary is authorized to waive, suspend, or reduce the rental, or minimum royalty, or reduce the royalty on an entire leasehold, including on any lease <page identifier="/us/stat/111/1569">111 STAT. 1569</page>operated pursuant to a unit agreement, whenever in his judgment the leases cannot be successfully operated under the terms provided therein. The Secretary is authorized to direct or assent to the suspension of operations and production on any lease or unit. In the event the Secretary, in the interest of conservation, shall direct or assent to the suspension of operations and production on any lease or unit, any payment of acreage rental or minimum royalty prescribed by such lease or unit likewise shall be suspended during the period of suspension of operations and production, and the term of such lease shall be extended by adding any such suspension period thereto; and (11) all receipts from sales, rentals, bonuses, and royalties on leases issued pursuant to this section shall be paid into the Treasury of the United States: <proviso><i>Provided,</i> That 50 percent thereof shall be paid by the Secretary of the Treasury semiannually, as soon thereafter as practicable after March 30 and September 30 each year, to the State of Alaska for: (A) planning; (B) construction, maintenance, and operation of essential public facilities; and (C) other necessary provisions of public service:</proviso> <proviso><i>Provided further,</i> That in the allocation of such funds, the State shall give priority to use by subdivisions of the State most directly or severely impacted by development of oil and gas leased under this Act.</proviso>”.</content> </section> <section> <num value="129"><inline class="smallCaps">Sec</inline>. 129. </num><heading><inline class="smallCaps">Limitations on Certain Indian Gaming Operations</inline>.</heading> <subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this section, the following definitions shall apply:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Class hi gaming</inline>.—</heading><content>The term “class III gaming” has the meaning provided that term in section 4(8) of the Indian Gaming Regulatory Act (25 U.S.C. 2703(8)).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Indian tribe</inline>.—</heading><content>The term “Indian tribe” has the meaning provided that term in section 4(e) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450(e)).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Secretary</inline>.—</heading><content>The term “Secretary” means the Secretary of the Department of the Interior.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><heading><inline class="smallCaps">Tribal-state compact</inline>.—</heading><content>The term “Tribal-State compact” means a Tribal-State compact referred to in section 11(d) of the Indian Gaming Regulatory Act (25 U.S.C. 2710(d)).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Class III Gaming Compacts</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><heading><inline class="smallCaps">Prohibition</inline>.—</heading><content>During fiscal year 1998, the Secretary may not expend any funds made available under this Act to review or approve any initial Tribal-State compact for class III gaming entered into on or after the date of enactment of this Act. This provision shall not apply to any Tribal-State compact which has been approved by a State in accordance with State law and the Indian Gaming Regulatory Act.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><heading><inline class="smallCaps">Rule of construction</inline>.—</heading><content>Nothing in this paragraph may be construed to prohibit the review or approval by the Secretary of a renewal or revision of, or amendment to a Tribal-State compact that is not covered under subparagraph (A).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Tribal-state compacts</inline>.—</heading><content>During fiscal year 1998, notwithstanding any other provision of law, no Tribal-State compact for class III gaming shall be considered to have been approved by the Secretary by reason of the failure of the Secretary to approve or disapprove that compact. This provision shall not apply to any Tribal-State compact which has been <page identifier="/us/stat/111/1570">111 STAT. 1570</page>approved by a State in accordance with State law and the Indian Gaming Regulatory Act.</content></paragraph> </subsection> </section> <section> <num value="130"><inline class="smallCaps">Sec</inline>. 130. </num><heading><inline class="smallCaps">Sense of the Senate Concerning Indian Gaming</inline>.—</heading><content class="inline">It is the sense of the Senate that the United States Department of Justice should vigorously enforce the provisions of the Indian Gaming Regulatory Act requiring an approved Tribal-State gaming compact prior to the initiation of class III gaming on Indian lands.</content> </section> <section> <num value="131"><inline class="smallCaps">Sec</inline>. 131. </num><content class="inline">No funds provided in this or any other Act may be expended for the promulgation of a proposed or final rule to amend or replace the National Indian Gaming Commission’s definition regulations located at 25 CFR 502.7 and 502.8.</content> </section> <section> <num value="132"><inline class="smallCaps">Sec</inline>. 132. </num><content class="inline">Notwithstanding any other provision of law, hereafter the United States Fish and Wildlife Service may disburse to local entities impact funding pursuant to Refuge Revenue Sharing that is associated with Federal real property transferred to the United States Geological Survey from the United States Fish and Wildlife Service.</content> </section> <section> <num value="133"><inline class="smallCaps">Sec</inline>. 133. </num><heading><inline class="smallCaps">Conveyance of Land to Lander County, Nevada</inline>.</heading> <subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Conveyance</inline>.—</heading><content>Not later than the date that is 120 days after the date of enactment of this Act, the Secretary of the Interior, acting through the Director of the Bureau of Land Management, shall convey to Lander County, Nevada, without consideration, all right, title, and interest of the United States, subject to all valid existing rights and to the rights-of-way described in subsection (b), in the property described as T. 32 N., R. 45 E., sec. 18, lots 3, 4, 11, 12, 16, 17, 18, 19, 20 and 21, Mount Diablo Meridian.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Rights-of-Way</inline>.—</heading><chapeau>The property conveyed under subsection (a) shall be subject to—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the right-of-way for Interstate 80;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the 33-foot wide right-of-way for access to the Indian cemetery included under Public Law 90–71 (81 Stat. 173); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>the following rights-of-way granted by the Secretary of the Interior: <list> <listItem><listContent class="indent1 fontsize10 depth0">NEV–010937 (powerline).</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">NEV–066891 (powerline).</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">NEV–35345 (powerline).</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">N–7636 (powerline).</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">N–56088 (powerline).</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">N–57541 (fiber optic cable).</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">N–55974 (powerline).</listContent></listItem> </list></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Requirement</inline>.—</heading><content>The property described in this section shall be used for public purposes and should the property be sold or used for other than public purposes, the property shall revert to the United States.</content> </subsection> </section> <section> <num value="134"><inline class="smallCaps">Sec</inline>. 134. </num><heading><inline class="smallCaps">Conveyance of Certain Bureau of Land Management Lands in Clark County, Nevada</inline>.</heading> <subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>Congress finds that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>certain landowners who own property adjacent to land managed by the Bureau of Land Management in the North Decatur Boulevard area of Las Vegas, Nevada, bordering on North Las Vegas, have been adversely affected by certain erroneous private land surveys that the landowners believed were accurate;<page identifier="/us/stat/111/1571">111 STAT. 1571</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the landowners have occupied or improved their property in good faith reliance on the erroneous surveys of the properties;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>the landowners believed that their entitlement to occupancy was finally adjudicated by a Judgment and Decree entered by the Eighth Judicial District Court of Nevada on October 26, 1989;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>errors in the private surveys were discovered in connection with a dependent resurvey and section subdivision conducted by the Bureau of Land Management in 1990, which established accurate boundaries between certain federally owned properties and private properties; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>the Secretary has authority to sell, and it is appropriate that the Secretary should sell, based on an appraisal of the fair market value as of December 1, 1982, the properties described in section 2(b) to the adversely affected landowners.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Conveyance of Properties</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>Purchase offers.—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>Not later than 1 year after the date of enactment of this Act, the city of Las Vegas, Nevada, on behalf of the owners of real property located adjacent to the properties described in paragraph (2), may submit to the Secretary of the Interior, acting through the Director of the Bureau of Land Management (referred to in this Act as the “Secretary”), a written offer to purchase the properties.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><heading><inline class="smallCaps">Information to accompany offer</inline>.—</heading><chapeau>An offer under subparagraph (A) shall be accompanied by—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>a description of each property offered to be purchased;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>information relating to the claims of ownership of the property based on an erroneous land survey; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii) </num><content>such other information as the Secretary may require.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Description of properties</inline>.—</heading><chapeau>The properties described in this paragraph, containing 37.36 acres, more or less, are—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>Government lots 22, 23, 26, and 27 in sec. 18, T. 19 S., R. 61 E., Mount Diablo Meridian;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>Government lots 20, 21, and 24 in sec. 19, T. 19 S., R. 61 E., Mount Diablo Meridian; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>Those lands encroached upon in Government lot 1 in sec. 24, T. 19 S., R. 60 E., Mount Diablo Meridian, containing approximately 8 acres.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Conveyance</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>Subject to the condition stated in subparagraph (B), the Secretary shall convey subject to valid existing rights to the city of Las Vegas, Nevada, all right, title, and interest of the United States in and to the properties offered to be purchased under paragraph (1) on payment by the city of the fair market value of the properties, based on an appraisal of the fair market value as of December 1, 1982, approved by the Secretary.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><heading><inline class="smallCaps">Condition</inline>.—</heading><content>Properties snail be conveyed under subparagraph (A) subject to the condition that the city convey the properties to the landowners who were adversely <page identifier="/us/stat/111/1572">111 STAT. 1572</page>affected by reliance on erroneous surveys as described in subsection (a).</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="135"><inline class="smallCaps">Sec</inline>. 135. </num><subsection class="inline"><num value="a">(a) </num><content>Notwithstanding any other provision of law, the Secretary of the Interior is directed to accept full title to approximately 84 acres of land located in Prince Georges County, Maryland, adjacent to Oxon Cove Park, and bordered generally by the Potomac River, Interstate 295 and the Woodrow Wilson Bridge, and in exchange therefor shall convey to the Corrections Corporation of America all of the interest of the United States in approximately 42 acres of land located in Oxon Cove Park in the District of Columbia, and bordered generally by Oxon Cove, Interstate 295 and the District of Columbia Impound Lot.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><content>The Secretary shall not acquire any lands under this section if the Secretary determines that the lands or any portion thereof have become contaminated with hazardous substances (as defined in the Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C. 9601)).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><content>Notwithstanding any other provision of law, the United States shall have no responsibility or liability with respect to any hazardous wastes or other substances placed on any of the lands covered by this section after their transfer to any party, but nothing in this section shall be construed as either diminishing or increasing any responsibility or liability of the United States based on the condition of such lands on the date of their transfer to the ownership of another party: <proviso><i>Provided,</i> That the Corrections Corporation of America shall indemnify the United States for liabilities arising under the Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C. 9601) and the Resource Conservation Recovery Act (42 U.S.C. 9601 et seq.).</proviso></content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><content>The properties so exchanged shall be equal in fair market value or if they are not approximately equal, the Corrections Corporation of America shall equalize the values by the payment of cash to the Secretary and any such payments shall be deposited to credit of “Miscellaneous Trust Funds, National Park Service” and shall be available without further appropriation until expended for the acquisition of land within the National Park System. No equalization shall be required if the value of the property received by the Secretary is more than that transferred by the Secretary.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><content>Costs of conducting necessary land surveys, preparing the legal descriptions of the lands to be conveyed, appraisals, deeds, other necessary documents, and administrative costs shall be borne by the Corporation. The required appraisals shall be conducted in accordance with 43 CFR 2201.3–1, 2201.3–3, and 2201.3–4.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><content>Following any exchange authorized by this provision, the boundaries of the Park System of the Nation’s Capital are hereby amended to reflect the property added to and deleted from that System.</content> </subsection> </section> <section> <num value="136"><inline class="smallCaps">Sec</inline>. 136.</num><sidenote><p class="indent0 firstIndent0 fontsize8">University of Alaska Fairbanks.</p></sidenote> <content class="inline">The National Park Service shall, within 30 days of enactment of this Act, begin negotiations with the University of Alaska Fairbanks, School of Mineral Engineering, to determine the compensation that shall be paid by the National Park Service, within funds appropriated to the National Park Service in this Act, or within unobligated balances of funds appropriated in prior appropriations Acts, to the University of Alaska Fairbanks, School of Mineral Engineering, for facilities, equipment, and interests owned by the University that were destroyed by the Federal Government at the Stampede Mine Site within the boundaries of Denali <page identifier="/us/stat/111/1573">111 STAT. 1573</page>National Park and Preserve: <proviso><i>Provided,</i> That if the National Park Service and the University of Alaska Fairbanks, School of Mineral Engineering, fail to reach a negotiated settlement within 90 days of commencing negotiations, then the National Park Service shall submit a formal request to the Director of the Office of Hearings and Appeals, Department of the Interior, for the purpose of entering into third-party mediation to be conducted in accordance with the Department of the Interior’s final policy applicable to alternative dispute resolution:</proviso> <proviso><i>Provided further,</i> That any payment made by the National Park Service to the University of Alaska Fairbanks, School of Mineral Engineering, shall fully satisfy the claims of the University of Alaska Fairbanks, School of Mineral Engineering; and that the University of Alaska Fairbanks, School of Mineral Engineering, shall convey to the Secretary of the Interior all property rights in such facilities, equipment and interests:</proviso> <proviso><i>Provided further,</i> That the Secretary of the Army shall provide, at no cost, two six-by-six vehicles, in excellent operating condition, or equivalent equipment to the University of Alaska Fairbanks, School of Mineral Engineering, and shall construct a bridge across the Bull River to the Golden Zone Mine Site to allow ingress and egress for the activities conducted by the School of Mineral Engineering.</proviso></content> </section> </level> <num value="II">TITLE II—</num><heading>RELATED AGENCIES</heading> <appropriations level="intermediate"> <heading>Department of Agriculture</heading> <appropriations level="small"> <heading>forest service</heading> <subheading>forest and rangeland research</subheading> <content>For necessary expenses of forest and rangeland research as authorized by law, $187,944,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>state and private forestry</heading> <content>For necessary expenses of cooperating with and providing technical and financial assistance to States, territories, possessions, and others, and for forest health management, cooperative forestry, and education and land conservation activities, $161,237,000, to remain available until expended, as authorized by law: <proviso><i>Provided,</i> That of funds available under this heading for Pacific Northwest Assistance in this or prior appropriations Acts, $800,000 shall be provided to the World Forestry Center for purposes of continuing scientific research and other authorized efforts regarding the land exchange efforts in the Umpqua River Basin region:</proviso> <proviso><i>Provided further,</i> That activities conducted pursuant to funds provided herein for the Alaska Spruce Bark Beetle task force shall be exempt from the requirements of the Federal Advisory Committee Act.</proviso></content> </appropriations> <appropriations level="small"> <heading>national forest system</heading> <content>For necessary expenses of the Forest Service, not otherwise provided for, for management, protection, improvement, and utilization of the National Forest System, for forest planning, inventory, and monitoring, and for administrative expenses associated with the management of funds provided under the headings “Forest and Rangeland Research”, “State and Private Forestry”, “National Forest System”, “Wildland Fire Management”, “Reconstruction and <page identifier="/us/stat/111/1574">111 STAT. 1574</page>Construction”, and “Land Acquisition”, $1,348,377,000, to remain available until expended, which shall include 50 percent of all moneys received during prior fiscal years as fees collected under the Land and Water Conservation Fund Act of 1965, as amended, in accordance with section 4 of the Act (16 U.S.C. 4601–6a(i)): <proviso><i>Provided,</i> That up to $10,000,000 of the funds provided herein for road maintenance shall be available for the planned obliteration of roads which are no longer needed:</proviso> <proviso><i>Provided further,</i> That funds may be used to construct or reconstruct facilities of the Forest Service:</proviso> <proviso><i>Provided further,</i> That no more than $250,000 shall be used on any single project, exclusive of planning and design costs:</proviso> <proviso><i>Provided further,</i> That any such project must be approved by the House and Senate Committees on Appropriations in compliance with the reprogramming procedures contained in House Report <sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote>105–163:</proviso> <proviso><i>Provided further,</i> That the Forest Service shall report annually to Congress the amount obligated for each project, and the total dollars obligated during the year.</proviso></content> </appropriations> <appropriations level="small"> <heading>wildland fire management</heading> <content>For necessary expenses for forest fire presuppression activities on National Forest System lands, for emergency fire suppression on or adjacent to such lands or other lands under fire protection agreement, and for emergency rehabilitation of burned-over National Forest System lands, $584,707,000 to remain available until expended: <proviso><i>Provided,</i> That such funds are available for repayment of advances from other appropriations accounts previously transferred for such purposes.</proviso></content> </appropriations> <appropriations level="small"> <heading>reconstruction and construction</heading> <content>For necessary expenses of the Forest Service, not otherwise provided for, $166,045,000 to remain available until expended for construction, reconstruction and acquisition of buildings and other facilities, and for construction, reconstruction and repair of forest roads and trails by the Forest Service as authorized by 16 U.S.C. 532–538 and 23 U.S.C. 101 and 205.</content> </appropriations> <appropriations level="small"> <heading>land acquisition</heading> <content>For expenses necessary to carry out the provisions of the Land and Water Conservation Fund Act of 1965, as amended (16 U.S.C. 4601–4 through 11), including administrative expenses, and for acquisition of land or waters, or interest therein, in accordance with statutory authority applicable to the Forest Service, $52,976,000, to be derived from the Land and Water Conservation Fund, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>acquisition of lands for national forests special acts</heading> <content>For acquisition of lands within the exterior boundaries of the Cache, Uinta, and Wasatch National Forests, Utah; the Toiyabe National Forest, Nevada; and the Angeles, San Bernardino, Sequoia, and Cleveland National Forests, California, as authorized by law, $1,069,000, to be derived from forest receipts.<page identifier="/us/stat/111/1575">111 STAT. 1575</page></content> </appropriations> <appropriations level="small"> <heading>acquisition of lands to complete land exchanges</heading> <content>For acquisition of lands, such sums, to be derived from funds deposited by State, county, or municipal governments, public school districts, or other public school authorities pursuant to the Act of December 4, 1967, as amended (16 U.S.C. 484a), to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>range betterment fund</heading> <content>For necessary expenses of range rehabilitation, protection, and improvement, 50 percent of all moneys received during the prior fiscal year, as fees for grazing domestic livestock on lands in National Forests in the sixteen Western States, pursuant to section 401(b)(1) of Public Law 94–579, as amended, to remain available until expended, of which not to exceed 6 percent shall be available for administrative expenses associated with on-the-ground range rehabilitation, protection, and improvements.</content> </appropriations> <appropriations level="small"> <heading>gifts, donations and bequests for forest and rangeland research</heading> <content>For expenses authorized by 16 U.S.C. 1643(b), $92,000, to remain available until expended, to be derived from the fund established pursuant to the above Act.</content> </appropriations> <appropriations level="small"> <heading>midewin national tallgrass prairie restoration fund</heading> <content>All funds collected for admission, occupancy, and use of the Midewin National Tailgrass Prairie, and the salvage value proceeds from sale of any facilities and improvements pursuant to sections 2915(d) and (e) of Public Law 104–106, are hereby appropriated and made available until expended for the necessary expenses of restoring and administering the Midewin National Tailgrass Prairie in accordance with section 2915(f) of the Act.</content> </appropriations> <appropriations level="small"> <heading>administrative provisions, forest service</heading> <content><p class="indent0 fontsize10">Appropriations to the Forest Service for the current fiscal year shall be available for: (1) purchase of not to exceed 159 passenger motor vehicles of which 22 will be used primarily for law enforcement purposes and of which 156 shall be for replacement; acquisition of 25 passenger motor vehicles from excess sources, and hire of such vehicles; operation and maintenance of aircraft, the purchase of not to exceed two for replacement only, and acquisition of 20 aircraft from excess sources notwithstanding other provisions of law, existing aircraft being replaced may be sold, with proceeds derived or trade-in value used to offset the purchase price for the replacement aircraft; (2) services pursuant to 7 U.S.C. 2225, and not to exceed $100,000 for employment under 5 U.S.C. 3109; (3) purchase, erection, and alteration of buildings and other public improvements (7 U.S.C. 2250); (4) acquisition of land, waters, and interests therein, pursuant to 7 U.S.C. 428a; (5) for expenses pursuant to the Volunteers in the National Forest Act of 1972 (16 U.S.C. 558a, 558d, and 558a note); (6) the cost of uniforms as authorized by 5 U.S.C. 5901–5902; and (7) for debt collection contracts in accordance with 31 U.S.C. 3718(c).</p> <p class="indent0 fontsize10">None of the funds made available under this Act shall be obligated or expended to change the boundaries of any region, <page identifier="/us/stat/111/1576">111 STAT. 1576</page>to abolish any region, to move or close any regional office for research, State and private forestry, or National Forest System administration of the Forest Service, Department of Agriculture without the consent of the House and Senate Committees on Appropriations.</p> <p class="indent0 fontsize10">Any appropriations or funds available to the Forest Service may be advanced to the Wildland Fire Management appropriation and may be used for forest firefighting and the emergency rehabilitation of burned-over or damaged lands or waters under its jurisdiction.</p> <p class="indent0 fontsize10">Funds appropriated to the Forest Service shall be available for assistance to or through the Agency for International Development and the Foreign Agricultural Service in connection with forest and rangeland research, technical information, and assistance in foreign countries, and shall be available to support forestry and related natural resource activities outside the United States and its territories and possessions, including technical assistance, education and training, and cooperation with United States and international organizations.</p> <p class="indent0 fontsize10">None of the funds made available to the Forest Service under this Act shall be subject to transfer under the provisions of section 702(b) of the Department of Agriculture Organic Act of 1944 (7 U.S.C. 2257) or 7 U.S.C. 147b unless the proposed transfer is approved in advance by the House and Senate Committees on Appropriations in compliance with the reprogramming procedures contained in the report accompanying this bill.</p> <p class="indent0 fontsize10">None of the funds available to the Forest Service may be reprogrammed without the advance approval of the House and Senate Committees on Appropriations in accordance with the procedures contained in the report accompanying this bill.</p> <p class="indent0 fontsize10">No funds appropriated to the Forest Service shall be transferred to the Working Capital Fund of the Department of Agriculture without the approval of the Chief of the Forest Service.</p> <p class="indent0 fontsize10">Notwithstanding any other provision of law, any appropriations or funds available to the Forest Service may be used to disseminate program information to private and public individuals and organizations through the use of nonmonetary items of nominal value and to provide nonmonetary awards of nominal value and to incur necessary expenses for the nonmonetary recognition of private individuals and organizations that make contributions to Forest Service programs.</p> <p class="indent0 fontsize10">Notwithstanding any other provision of law, money collected, in advance or otherwise, by the Forest Service under authority of section 101 of Public Law 93–153 (30 U.S.C. 185(1)) as reimbursement of administrative and other costs incurred in processing pipeline right-of-way or permit applications and for costs incurred in monitoring the construction, operation, maintenance, and termination of any pipeline and related facilities, may be used to reimburse the applicable appropriation to which such costs were originally charged.</p> <p class="indent0 fontsize10">Funds available to the Forest Service shall be available to conduct a program of not less than $1,000,000 for high priority projects within the scope of the approved budget which shall be carried out by the Youth Conservation Corps as authorized by the Act of August 13, 1970, as amended by Public Law 93–408.</p> <p class="indent0 fontsize10">None of the funds available in this Act shall be used for timber sale preparation using clearcutting in hardwood stands in <page identifier="/us/stat/111/1577">111 STAT. 1577</page>excess of 25 percent of the fiscal year 1989 harvested volume in the Wayne National Forest, Ohio: <proviso><i>Provided,</i> That this limitation shall not apply to hardwood stands damaged by natural disaster:</proviso> <proviso><i>Provided further,</i> That landscape architects shall be used to maintain a visually pleasing forest.</proviso></p> <p class="indent0 fontsize10">Any money collected from the States for fire suppression assistance rendered by the Forest Service on non-Federal lands not in the vicinity of National Forest System lands shall be used to reimburse the applicable appropriation and shall remain available until expended as the Secretary may direct in conducting activities authorized by 16 U.S.C. 2101 note, 2101–2110, 1606, and 2111.</p> <p class="indent0 fontsize10">Of the funds available to the Forest Service, $1,500 is available to the Chief of the Forest Service for official reception and representation expenses.</p> <p class="indent0 fontsize10">Notwithstanding any other provision of law, the Forest Service is authorized to employ or otherwise contract with persons at regular rates of pay, as determined by the Service, to perform work occasioned by emergencies such as fires, storms, floods, earthquakes or any other unavoidable cause without regard to Sundays, Federal holidays, and the regular workweek.</p> <p class="indent0 fontsize10">To the greatest extent possible, and in accordance with the Final Amendment to the Shawnee National Forest Plan, none of the funds available in this Act shall be used for preparation of timber sales using clearcutting or other forms of even-aged management in hardwood stands in the Shawnee National Forest, Illinois.</p> <p class="indent0 fontsize10">Pursuant to sections 405(b) and 410(b) of Public Law 101593, of the funds available to the Forest Service, up to $2,250,000 may be advanced in a lump sum as Federal financial assistance to the National Forest Foundation, without regard to when the Foundation incurs expenses, for administrative expenses or projects on or benefitting National Forest System lands or related to Forest Service programs: <proviso><i>Provided,</i> That of the Federal funds made available to the Foundation, no more than $750,000 shall be available for administrative expenses:</proviso> <proviso><i>Provided further,</i> That the Foundation shall obtain, by the end of the period of Federal financial assistance, private contributions to match on at least one-for-one basis funds made available by the Forest Service:</proviso> <proviso><i>Provided further,</i> That the Foundation may transfer Federal funds to a recipient of Federal financial assistance for a project at the same rate that the recipient has obtained the non-Federal matching funds:</proviso> <proviso><i>Provided further,</i> That hereafter, the National Forest Foundation may hold Federal<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s583j–9">16 USC 583j–9</ref>.</p></sidenote> funds made available but not immediately disbursed and may use any interest or other investment income earned (before, on, or after the date of enactment of this Act) on Federal funds to carry out the purposes of Public Law 101–593:</proviso> <proviso><i>Provided further,</i> That such investments may be made only in interest-bearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United States.</proviso></p> <p class="indent0 fontsize10">Pursuant to section 2(b)(2) of Public Law 98–244, up to $2,000,000 of the funds available to the Forest Service shall be available for matching funds, as authorized by 16 U.S.C. 3701– 3709, and may be advanced in a lump sum as Federal financial assistance, without regard to when expenses are incurred, for projects on or benefitting National Forest System lands or related to Forest Service programs: <proviso><i>Provided,</i> That the Foundation shall obtain, by the end of the period of Federal financial assistance, private contributions to match on at least one-for-one basis funds <page identifier="/us/stat/111/1578">111 STAT. 1578</page>advanced by the Forest Service:</proviso> <proviso><i>Provided further,</i> That the Foundation may transfer Federal funds to a recipient of Federal financial assistance for a project at the same rate that the recipient has obtained the non-Federal matching funds.</proviso></p> <p class="indent0 fontsize10">Funds appropriated to the Forest Service shall be available for interactions with and providing technical assistance to rural communities for sustainable rural development purposes.</p> <p class="indent0 fontsize10">Notwithstanding any other provision of law, 80 percent of the funds appropriated to the Forest Service in the “National Forest System” and “Reconstruction and Construction” accounts and planned to be allocated to activities under the “Jobs in the Woods” program for projects on National Forest land in the State of Washington may be granted directly to the Washington State Department of Fish and Wildlife for accomplishment of planned projects. Twenty percent of said funds shall be retained by the Forest Service for planning and administering projects. Project selection and prioritization shall be accomplished by the Forest Service with such consultation with the State of Washington as the Forest Service deems appropriate.</p> <p class="indent0 fontsize10">Funds appropriated to the Forest Service shall be available for payments to counties within the Columbia River Gorge National Scenic Area, pursuant to sections 14(c)(1) and (2), and section 16(a)(2) of Public Law 99–663.</p> <p class="indent0 fontsize10">Any funds available to the Forest Service may be used for retrofitting the Commanding Officer’s Building (S–2), to accommodate the relocation of the Forest Supervisor’s Office for the San Bernardino National Forest: <proviso><i>Provided,</i> That funds for the move must come from funds otherwise available to Region 5:</proviso> <proviso><i>Provided further,</i> That any funds to be provided for such purposes shall only be available upon approval of the House and Senate Committees on Appropriations.</proviso></p> <p class="indent0 fontsize10">The Secretary of Agriculture is authorized to enter into grants, contracts, and cooperative agreements as appropriate with the Pinchot Institute for Conservation, as well as with public and other private agencies, organizations, institutions, and individuals, to provide for the development, administration, maintenance, or restoration of land, facilities, or Forest Service programs, at the Grey Towers National Historic Landmark: <proviso><i>Provided,</i> That, subject to such terms and conditions as the Secretary of Agriculture may prescribe, any such public or private agency, organization, institution, or individual may solicit, accept, and administer private gifts of money and real or personal property for the benefit of, or in connection with, the activities and services at the Grey Towers National Historic Landmark:</proviso> <proviso><i>Provided further,</i> That such gifts may be accepted notwithstanding the fact that a donor conducts business with the Department of Agriculture in any capacity.</proviso></p> <p class="indent0 fontsize10">Funds appropriated to the Forest Service shall be available, as determined by the Secretary, for payments to Del Norte County, California, pursuant to sections 13(e) and 14 of the Smith River National Recreation Area Act (Public Law 101–612).</p> <p class="indent0 fontsize10">For purposes of the Southeast Alaska Economic Disaster Fund as set forth in section 101(c) of Public Law 104–134, the direct grants provided in subsection (c) shall be considered direct payments for purposes of all applicable law except that these direct grants may not be used for lobbying activities.</p> <p class="indent0 fontsize10">No employee of the Department of Agriculture may be detailed or assigned from an agency or office funded by this Act to any <page identifier="/us/stat/111/1579">111 STAT. 1579</page>other agency or office of the Department for more than 30 days unless the individual’s employing agency or office is fully reimbursed by the receiving agency or office for the salary and expenses of the employee for the period of assignment.</p> <p class="indent0 fontsize10">No funds appropriated under this or any other Act for the purpose of operations conducted at the Forest Service Region 10 headquarters, including those funds identified for centralized field costs for employees of this office, shall be obligated or expended in excess of $17,500,000 from the total funds appropriated for Region 10, without 60 days prior notice to Congress. Funds appropriated by this Act to implement the Revised Tongass National Forest Land Management Plan, shall be spent and obligated at the Forest Supervisor and Ranger District levels, with the exception of specific management and oversight expenses, provided such expenses are included in the funding ceiling of $17,500,000.</p> </content></appropriations> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF ENERGY</heading> <appropriations level="small"> <heading>clean coal technology</heading> <subheading>(rescission)</subheading> <content>Of the funds made available under this heading for obligation in fiscal year 1997 or prior years, $101,000,000 are rescinded: <proviso><i>Provided,</i> That funds made available in previous appropriations Acts shall be available for any ongoing project regardless of the separate request for proposal under which the project was selected.</proviso></content> </appropriations> <appropriations level="small"> <heading>fossil energy research and development</heading> <content>For necessary expenses in carrying out fossil energy research and development activities, under the authority of the Department of Energy Organization Act (Public Law 95–91), including the acquisition of interest, including defeasible and equitable interests in any real property or any facility or for plant or facility acquisition or expansion, and for conducting inquiries, technological investigations and research concerning the extraction, processing, use, and disposal of mineral substances without objectionable social and environmental costs (30 U.S.C. 3, 1602, and 1603), performed under the minerals and materials science programs at the Albany Research Center in Oregon, $362,403,000, to remain available until expended: <proviso><i>Provided,</i> That no part of the sum herein made available shall be used for the field testing of nuclear explosives in the recovery of oil and gas.</proviso></content> </appropriations> <appropriations level="small"> <heading>alternative fuels production</heading> <subheading>(including transfer of funds)</subheading> <content>Moneys received as investment income on the principal amount in the Great Plains Project Trust at the Norwest Bank of North Dakota, in such sums as are earned as of October 1, 1997, shall be deposited in this account and immediately transferred to the general fund of the Treasury. Moneys received as revenue sharing from operation of the Great Plains Gasification Plant shall be immediately transferred to the general fund of the Treasury.<page identifier="/us/stat/111/1580">111 STAT. 1580</page></content> </appropriations> <appropriations level="small"> <heading>naval petroleum and oil shale reserves</heading> <content>For necessary expenses in carrying out naval petroleum and oil shale reserve activities, $107,000,000, and such sums as are necessary to operate Naval Petroleum Reserve Numbered 1 between May 16, 1998 and September 30, 1998, to remain available until expended: <proviso><i>Provided,</i> That notwithstanding any other provision of law, revenues received from use and operation of Naval Petroleum Reserve Numbered 1 in excess of $163,000,000 shall be used to offset the costs of operating Naval Petroleum Reserve Numbered 1 between May 16, 1998 and September 30, 1998:</proviso> <proviso><i>Provided further,</i> That revenues retained pursuant to the first proviso under this heading in Public Law 102–381 (106 Stat. 1404) shall be immediately transferred to the general fund of the Treasury:</proviso> <proviso><i>Provided further,</i><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s7430">10 USC 7430 note</ref>.</p></sidenote> That the requirements of 10 U.S.C. 7430(b)(2)(B) shall not apply to fiscal year 1998.</proviso></content> </appropriations> <appropriations level="small"> <heading>energy conservation</heading> <content>For necessary expenses in carrying out energy conservation activities, $611,723,000, to remain available until expended, including, notwithstanding any other provision of law, the excess amount for fiscal year 1998 determined under the provisions of section 3003(d) of Public Law 99–509 (15 U.S.C. 4502): <proviso><i>Provided,</i> That $155,095,000 shall be for use in energy conservation programs as defined in section 3008(3) of Public Law 99–509 (15 U.S.C. 4507) and shall not be available until excess amounts are determined under the provisions of section 3003(d) of Public Law 99–509 (15 U.S.C. 4502):</proviso> <proviso><i>Provided further,</i> That notwithstanding section 3003(d)(2) of Public Law 99–509 such sums shall be allocated to the eligible programs as follows: $124,845,000 for weatherization assistance grants and $30,250,000 for State energy conservation grants.</proviso></content> </appropriations> <appropriations level="small"> <heading>economic regulation</heading> <content>For necessary expenses in carrying out the activities of the Office of Hearings and Appeals, $2,725,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>strategic petroleum reserve</heading> <subheading>(including transfer of funds)</subheading> <content>For necessary expenses for Strategic Petroleum Reserve facility development and operations and program management activities pursuant to the Energy Policy and Conservation Act of 1975, as amended (42 U.S.C. 6201 et seq.), $207,500,000, to remain available until expended, of which $207,500,000 shall be repaid from the “SPR Operating Fund” from amounts made available from the sale of oil from the Reserve: <proviso><i>Provided,</i> That notwithstanding section 161 of the Energy Policy and Conservation Act of 1975, the Secretary shall draw down and sell in fiscal year 1998, $207,500,000 worth of oil from the Strategic Petroleum Reserve:</proviso> <proviso><i>Provided further,</i> That the proceeds from the sale shall be deposited into the “SPR Operating Fund”, and shall, upon receipt, be transferred to the Strategic Petroleum Reserve account for operations of the Strategic Petroleum Reserve.</proviso><page identifier="/us/stat/111/1581">111 STAT. 1581</page></content> </appropriations> <appropriations level="small"> <heading>spr petroleum account</heading> <content>Notwithstanding 42 U.S.C. 6240(d), the United States share of crude oil in Naval Petroleum Reserve Numbered 1 (Elk Hills) may be sold or otherwise disposed of to other than the Strategic Petroleum Reserve: <proviso><i>Provided,</i> That outlays in fiscal year 1998 resulting from the use of funds in this account shall not exceed $5,000,000.</proviso></content> </appropriations> <appropriations level="small"> <heading>energy information administration</heading> <content>For necessary expenses in carrying out the activities of the Energy Information Administration, $66,800,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>administrative provisions, department of energy</heading> <content><p class="indent0 fontsize10">Appropriations under this Act for the current fiscal year shall be available for hire of passenger motor vehicles; hire, maintenance, and operation of aircraft; purchase, repair, and cleaning of uniforms; and reimbursement to the General Services Administration for security guard services.</p> <p class="indent0 fontsize10">From appropriations under this Act, transfers of sums may be made to other agencies of the Government for the performance of work for which the appropriation is made.</p> <p class="indent0 fontsize10">None of the funds made available to the Department of Energy under this Act shall be used to implement or finance authorized price support or loan guarantee programs unless specific provision is made for such programs in an appropriations Act.</p> <p class="indent0 fontsize10">The Secretary is authorized to accept lands, buildings, equipment, and other contributions from public and private sources and to prosecute projects in cooperation with other agencies, Federal, State, private or foreign: <proviso><i>Provided,</i> That revenues and other moneys received by or for the account of the Department of Energy or otherwise generated by sale of products in connection with projects of the Department appropriated under this Act may be retained by the Secretary of Energy, to be available until expended, and used only for plant construction, operation, costs, and payments to cost-sharing entities as provided in appropriate cost-sharing contracts or agreements:</proviso> <proviso><i>Provided further,</i> That the remainder of revenues after the making of such payments shall be covered into the Treasury as miscellaneous receipts:</proviso> <proviso><i>Provided further,</i> That any<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> contract, agreement, or provision thereof entered into by the Secretary pursuant to this authority shall not be executed prior to the expiration of 30 calendar days (not including any day in which either House of Congress is not in session because of adjournment of more than three calendar days to a day certain) from the receipt by the Speaker of the House of Representatives and the President of the Senate of a full comprehensive report on such project, including the facts and circumstances relied upon in support of the proposed project.</proviso></p> <p class="indent0 fontsize10">No funds provided in this Act may be expended by the Department of Energy to prepare, issue, or process procurement documents for programs or projects for which appropriations have not been made.</p> <p class="indent0 fontsize10">In addition to other authorities set forth in this Act, the Secretary may accept fees and contributions from public and private <page identifier="/us/stat/111/1582">111 STAT. 1582</page>sources, to be deposited in a contributed funds account, and prosecute projects using such fees and contributions in cooperation with other Federal, State or private agencies or concerns.</p> <p class="indent0 fontsize10">The Secretary is authorized to accept funds from other Federal agencies in return for assisting agencies in achieving energy efficiency in Federal facilities and operations by the use of privately financed, energy saving performance contracts and other private financing mechanisms. The funds may be provided after agencies begin to realize energy cost savings; may be retained by the Secretary until expended; and may be used only for the purpose of assisting Federal agencies in achieving greater efficiency, water conservation, and use of renewable energy by means of privately financed mechanisms, including energy savings performance contracts. Any such privately financed contracts shall meet the provisions of the Energy Policy Act of 1992, Public Law 102–486 (42 U.S.C. 8287).</p> </content></appropriations> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF HEALTH AND HUMAN SERVICES</heading> <appropriations level="intermediate"> <heading>Indian Health Service</heading> <appropriations level="small"> <heading>indian health services</heading> <content>For expenses necessary to carry out the Act of August 5, 1954 (68 Stat. 674), the Indian Self-Determination Act, the Indian Health Care Improvement Act, and titles II and III of the Public Health Service Act with respect to the Indian Health Service, $1,841,074,000, together with payments received during the fiscal year pursuant to 42 U.S.C. 238(b) for services furnished by the Indian Health Service: <proviso><i>Provided,</i> That funds made available to tribes and tribal organizations through contracts, grant agreements, or any other agreements or compacts authorized by the Indian Self-Determination and Education Assistance Act of 1975 (25 U.S.C. 450), shall be deemed to be obligated at the time of the grant or contract award and thereafter shall remain available to the tribe or tribal organization without fiscal year limitation:</proviso> <proviso><i>Provided further,</i> That $12,000,000 shall remain available until expended, for the Indian Catastrophic Health Emergency Fund:</proviso> <proviso><i>Provided further,</i> That $361,375,000 for contract medical care shall remain available for obligation until September 30, 1999:</proviso> <proviso><i>Provided further,</i> That of the funds provided, not less than $11,889,000 shall be used to carry out the loan repayment program under section 108 of the Indian Health Care Improvement Act:</proviso> <proviso><i>Provided further,</i> That funds provided in this Act may be used for one-year contracts and grants which are to be performed in two fiscal years, so long as the total obligation is recorded in the year for which the funds are appropriated:</proviso> <proviso><i>Provided further,</i> That the amounts collected by the Secretary of Health and Human Services under the authority of title IV of the Indian Health Care Improvement Act shall remain available until expended for the purpose of achieving compliance with the applicable conditions and requirements of titles XVIII and XIX of the Social Security Act (exclusive of planning, design, or construction of new facilities):</proviso> <proviso><i>Provided further,</i> That of the funds provided, $7,500,000 shall remain available until expended, for the Indian Self-Determination Fund, which shall be available for the transitional costs of initial or expanded tribal contracts, compacts, grants or cooperative agreements with the Indian Health Service under the provisions of the Indian Self-Determination Act:</proviso> <page identifier="/us/stat/111/1583">111 STAT. 1583</page><proviso><i>Provided further,</i> That funding contained herein, and in any earlier appropriations Acts for scholarship programs under the Indian Health Care Improvement Act (25 U.S.C. 1613) shall remain available for obligation until September 30, 1999:</proviso> <proviso><i>Provided further,</i> That amounts received by tribes and tribal organizations under title TV of the Indian Health Care Improvement Act shall be reported and accounted for and available to the receiving tribes and tribal organizations until expended:</proviso> <proviso><i>Provided further,</i> That not to exceed $168,702,000 shall be for payments to tribes and tribal organizations for contract support costs associated with ongoing contracts or grants or compacts entered into with the Indian Health Service prior to fiscal year 1998, as authorized by the Indian Self-Determination Act of 1975, as amended.</proviso></content> </appropriations> <appropriations level="small"> <heading>indian health facilities</heading> <content>For construction, repair, maintenance, improvement, and equipment of health and related auxiliary facilities, including quarters for personnel; preparation of plans, specifications, and drawings; acquisition of sites, purchase and erection of modular buildings, and purchases of trailers; and for provision of domestic and community sanitation facilities for Indians, as authorized by section 7 of the Act of August 5, 1954 (42 U.S.C. 2004a), the Indian Self-Determination Act, and the Indian Health Care Improvement Act, and for expenses necessary to carry out such Acts and titles II and III of the Public Health Service Act with respect to environmental health and facilities support activities of the Indian Health Service, $257,538,000, to remain available until expended: <proviso><i>Provided,</i> That notwithstanding any other provision of law, funds appropriated for the planning, design, construction or renovation of health facilities for the benefit of an Indian tribe or tribes may be used to purchase land for sites to construct, improve, or enlarge health or related facilities.</proviso></content> </appropriations> <appropriations level="small"> <heading>administrative provisions, indian health service</heading> <content>Appropriations in this Act to the Indian Health Service shall be available for services as authorized by 5 U.S.C. 3109 but at rates not to exceed the per diem rate equivalent to the maximum rate payable for senior-level positions under 5 U.S.C. 5376; hire of passenger motor vehicles and aircraft; purchase of medical equipment; purchase of reprints; purchase, renovation and erection of modular buildings and renovation of existing facilities; payments for telephone service in private residences in the field, when authorized under regulations approved by the Secretary; and for uniforms or allowances therefore as authorized by 5 U.S.C. 5901–5902; and for expenses of attendance at meetings which are concerned with the functions or activities for which the appropriation is made or which will contribute to improved conduct, supervision, or management of those functions or activities: <proviso><i>Provided,</i> That in accordance with the provisions of the Indian Health Care Improvement Act, non-Indian patients may be extended health care at all tribally administered or Indian Health Service facilities, subject to charges, and the proceeds along with funds recovered under the Federal Medical Care Recovery Act (42 U.S.C. 2651–2653) shall be credited to the account of the facility providing the service <page identifier="/us/stat/111/1584">111 STAT. 1584</page>and shall be available without fiscal year limitation:</proviso> <proviso><i>Provided further,</i> That notwithstanding any other law or regulation, funds transferred from the Department of Housing and Urban Development to the Indian Health Service shall be administered under Public Law 86–121 (the Indian Sanitation Facilities Act) and Public Law 93–638, as amended:</proviso> <proviso><i>Provided further,</i> That funds appropriated to the Indian Health Service in this Act, except those used for administrative and program direction purposes, shall not be subject to limitations directed at curtailing Federal travel and transportation:</proviso> <proviso><i>Provided further,</i> That notwithstanding any other provision of law, funds previously or herein made available to a tribe or tribal organization through a contract, grant, or agreement authorized by title I or title III of the Indian Self-Determination and Education Assistance Act of 1975 (25 U.S.C. 450), may be deobligated and reobligated to a self-determination contract under title I, or a self-governance agreement under title III of such Act and thereafter shall remain available to the tribe or tribal organization without fiscal year limitation:</proviso> <proviso><i>Provided further,</i> That none of the funds made available to the Indian Health Service in this Act shall be used to implement the final rule published in the Federal Register on September 16, 1987, by the Department of Health and Human Services, relating to the eligibility for the health care services of the Indian Health Service until the Indian Health Service has submitted a budget request reflecting the increased costs associated with the proposed final rule, and such request has been included in an appropriations Act and enacted into law:</proviso> <proviso><i>Provided further,</i> That funds made available in this Act are to be apportioned to the Indian Health Service as appropriated in this Act, and accounted for in the appropriation structure set forth in this Act:</proviso> <proviso><i>Provided further,</i> That with respect to functions transferred by the Indian Health Service to tribes or tribal organizations, the Indian Health Service is authorized to provide goods and services to those entities, on a reimbursable basis, including payment in advance with subsequent adjustment, and the reimbursements received therefrom, along with the funds received from those entities pursuant to the Indian Self-Determination Act, may be credited to the same or subsequent appropriation account which provided the funding, said amounts to remain available until expended:</proviso> <proviso><i>Provided further,</i> That reimbursements for training, technical assistance, or services provided by the Indian Health Service will contain total costs, including direct, administrative, and overhead associated with the provision of goods, services, or technical assistance:</proviso> <proviso><i>Provided further,</i> That the appropriation structure for the Indian Health Service may not be altered without advance approval of the House and Senate Committees on Appropriations.</proviso></content> </appropriations> </appropriations> </appropriations> <appropriations level="major"> <heading>OTHER RELATED AGENCIES</heading> <appropriations level="intermediate"> <heading>Office of Navajo and Hopi Indian Relocation</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Office of Navajo and Hopi Indian Relocation as authorized by Public Law 93–531, $15,000,000, to remain available until expended: <proviso><i>Provided,</i> That funds provided in this or any other appropriations Act are to be used to relocate eligible individuals and groups including evictees from District 6, <page identifier="/us/stat/111/1585">111 STAT. 1585</page>Hopi-partitioned lands residents, those in significantly substandard housing, and all others certified as eligible and not included in the preceding categories:</proviso> <proviso><i>Provided further,</i> That none of the funds contained in this or any other Act may be used by the Office of Navajo and Hopi Indian Relocation to evict any single Navajo or Navajo family who, as of November 30, 1985, was physically domiciled on the lands partitioned to the Hopi Tribe unless a new or replacement home is provided for such household:</proviso> <proviso><i>Provided further,</i> That no relocatee will be provided with more than one new or replacement home:</proviso> <proviso><i>Provided further,</i> That the Office shall relocate any certified eligible relocatees who have selected and received an approved homesite on the Navajo reservation or selected a replacement residence off the Navajo reservation or on the land acquired pursuant to 25 U.S.C. 640d–10.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Institute of American Indian and Alaska Native Culture and Arts Development</heading> <appropriations level="small"> <heading>payment to the institute</heading> <content>For payment to the Institute of American Indian and Alaska Native Culture and Arts Development, as authorized by title XV of Public Law 99–498, as amended (20 U.S.C. 56 part A), $4,250,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Smithsonian Institution</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Smithsonian Institution, as authorized by law, including research in the fields of art, science, and history; development, preservation, and documentation of the National Collections; presentation of public exhibits and performances; collection, preparation, dissemination, and exchange of information and publications; conduct of education, training, and museum assistance programs; maintenance, alteration, operation, lease (for terms not to exceed 30 years), and protection of buildings, facilities, and approaches; not to exceed $100,000 for services as authorized by 5 U.S.C. 3109; up to 5 replacement passenger vehicles; purchase, rental, repair, and cleaning of uniforms for employees; $333,408,000, of which not to exceed $32,718,000 for the instrumentation program, collections acquisition, Museum Support Center equipment and move, exhibition reinstallation, the National Museum of the American Indian, the repatriation of skeletal remains program, research equipment, information management, and Latino programming shall remain available until expended, and including such funds as may be necessary to support American overseas research centers and a total of $125,000 for the Council of American Overseas Research Centers: <proviso><i>Provided,</i> That funds appropriated herein are available for advance payments to independent contractors performing research services or participating in official Smithsonian presentations.</proviso></content> </appropriations> <appropriations level="small"> <heading>construction and improvements, national zoological park</heading> <content>For necessary expenses of planning, construction, remodeling, and equipping of buildings and facilities at the National Zoological Park, by contract or otherwise, $3,850,000, to remain available until expended.<page identifier="/us/stat/111/1586">111 STAT. 1586</page></content> </appropriations> <appropriations level="small"> <heading>repair and restoration of buildings</heading> <content>For necessary expenses of repair and restoration of buildings owned or occupied by the Smithsonian Institution, by contract or otherwise, as authorized by section 2 of the Act of August 22, 1949 (63 Stat. 623), including not to exceed $10,000 for services as authorized by 5 U.S.C. 3109, $32,000,000, to remain available until expended: <proviso><i>Provided,</i> That contracts awarded for environmental systems, protection systems, and exterior repair or restoration of buildings of the Smithsonian Institution may be negotiated with selected contractors and awarded on the basis of contractor qualifications as well as price.</proviso></content> </appropriations> <appropriations level="small"> <heading>construction</heading> <content>For necessary expenses for construction, $33,000,000, to remain available until expended: <proviso><i>Provided,</i> That notwithstanding any other provision of law, a single procurement for the construction of the National Museum of the American Indian may be issued which includes the full scope of the project:</proviso> <proviso><i>Provided further,</i> That the solicitation and the contract shall contain the clause “availability of funds” found at 48 CFR 52.232.18.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Gallery of Art</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For the upkeep and operations of the National Gallery of Art, the protection and care of the works of art therein, and administrative expenses incident thereto, as authorized by the Act of March 24, 1937 (50 Stat. 51), as amended by the public resolution of April 13, 1939 (Public Resolution 9, Seventy-sixth Congress), including services as authorized by 5 U.S.C. 3109; payment in advance when authorized by the treasurer of the Gallery for membership in library, museum, and art associations or societies whose publications or services are available to members only, or to members at a price lower than to the general public; purchase, repair, and cleaning of uniforms for guards, and uniforms, or allowances therefor, for other employees as authorized by law (5 U.S.C. 59015902); purchase or rental of devices and services for protecting buildings and contents thereof, and maintenance, alteration, improvement, and repair of buildings, approaches, and grounds; and purchase of services for restoration and repair of works of art for the National Gallery of Art by contracts made, without advertising, with individuals, firms, or organizations at such rates or prices and under such terms and conditions as the Gallery may deem proper, $55,837,000, of which not to exceed $3,026,000 for the special exhibition program shall remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>repair, restoration and renovation of buildings</heading> <content>For necessary expenses of repair, restoration and renovation of buildings, grounds and facilities owned or occupied by the National Gallery of Art, by contract or otherwise, as authorized, $6,192,000, to remain available until expended: <proviso><i>Provided,</i> That contracts awarded for environmental systems, protection systems, <page identifier="/us/stat/111/1587">111 STAT. 1587</page>and exterior repair or renovation of buildings of the National Gallery of Art may be negotiated with selected contractors and awarded on the basis of contractor qualifications as well as price.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>John F. Kennedy Center for the Performing Arts</heading> <appropriations level="small"> <heading>operations and maintenance</heading> <content>For necessary expenses for the operation, maintenance and security of the John F. Kennedy Center for the Performing Arts, $11,375,000.</content> </appropriations> <appropriations level="small"> <heading>construction</heading> <content>For necessary expenses for capital repair and rehabilitation of the existing features of the building and site of the John F. Kennedy Center for the Performing Arts, $9,000,000, to remain available until expended.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Woodrow Wilson International Center for Scholars</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For expenses necessary in carrying out the provisions of the Woodrow Wilson Memorial Act of 1968 (82 Stat. 1356) including hire of passenger vehicles and services as authorized by 5 U.S.C. 3109, $5,840,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Foundation on the Arts and the Humanities</heading> <subheading>National Endowment for the Arts</subheading> <appropriations level="small"> <heading>grants and administration</heading> <content>For necessary expenses to carry out the National Foundation on the Arts and the Humanities Act of 1965, as amended, $81,240,000 shall be available to the National Endowment for the Arts for the support of projects and productions in the arts through assistance to organizations and individuals pursuant to section 5(c) of the Act, and for administering the functions of the Act, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>matching grants</heading> <content>To carry out the provisions of section 10(a)(2) of the National Foundation on the Arts and the Humanities Act of 1965, as amended, $16,760,000, to remain available until expended, to the National Endowment for the Arts: <proviso><i>Provided,</i> That this appropriation shall be available for obligation only in such amounts as may be equal to the total amounts of gifts, bequests, and devises of money, and other property accepted by the chairman or by grantees of the Endowment under the provisions of section 10(a)(2), subsections 11(a)(2)(A) and 11(a)(3)(A) during the current and preceding fiscal years for which equal amounts have not previously been appropriated.</proviso><page identifier="/us/stat/111/1588">111 STAT. 1588</page></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Endowment for the Humanities</heading> <appropriations level="small"> <heading>grants and administration</heading> <content>For necessary expenses to carry out the National Foundation on the Arts and the Humanities Act of 1965, as amended, $96,800,000, shall be available to the National Endowment for the Humanities for support of activities in the humanities, pursuant to section 7(c) of the Act, and for administering the functions of the Act, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>matching grants</heading> <content>To carry out the provisions of section 10(a)(2) of the National Foundation on the Arts and the Humanities Act of 1965, as amended, $13,900,000, to remain available until expended, of which $8,000,000 shall be available to the National Endowment for the Humanities for the purposes of section 7(h): <proviso><i>Provided,</i> That this appropriation shall be available for obligation only in such amounts as may be equal to the total amounts of gifts, bequests, and devises of money, and other property accepted by the chairman or by grantees of the Endowment under the provisions of subsections 11(a)(2)(B) and U(a)(3)(B) during the current and preceding fiscal years for which equal amounts have not previously been appropriated.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Institute of Museum and Library Services</heading> <appropriations level="small"> <heading>office of museum services</heading> <subheading>grants and administration</subheading> <content>For carrying out subtitle C of the Museum and Library Services Act of 1996, $23,280,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>administrative provisions</heading> <content>None of the funds appropriated to the National Foundation on the Arts and the Humanities may be used to process any grant or contract documents which do not include the text of 18 U.S.C. 1913: <proviso><i>Provided,</i> That none of the funds appropriated to the National Foundation on the Arts and the Humanities may be used for official reception and representation expenses.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Commission of Fine Arts</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For expenses made necessary by the Act establishing a Commission of Fine Arts (40 U.S.C. 104), $907,000.</content> </appropriations> <appropriations level="small"> <heading>national capital arts and cultural affairs</heading> <content>For necessary expenses as authorized by Public Law 99–190 (20 U.S.C. 956(a)), as amended, $7,000,000.<page identifier="/us/stat/111/1589">111 STAT. 1589</page></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Advisory Council on Historic Preservation</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Advisory Council on Historic Preservation (Public Law 89–665, as amended), $2,745,000: <proviso><i>Provided,</i> That none of these funds shall be available for compensation of level V of the Executive Schedule or higher positions.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Capital Planning Commission</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses, as authorized by the National Capital Planning Act of 1952 (40 U.S.C. 71–71i), including services as authorized by 5 U.S.C. 3109, $5,740,000: <proviso><i>Provided,</i> That all appointed members will be compensated at a rate not to exceed the rate for level IV of the Executive Schedule:</proviso> <proviso><i>Provided further,</i> That beginning in fiscal year 1998 and thereafter, the Commission<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t40/s71a">40 USC 71a note</ref>.</p></sidenote> is authorized to charge fees to cover the full costs of Geographic Information System products and services supplied by the Commission, and such fees shall be credited to this account as an offsetting collection, to remain available until expended.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>United States Holocaust Memorial Council</heading> <appropriations level="small"> <heading>holocaust memorial council</heading> <content>For expenses of the Holocaust Memorial Council, as authorized by Public Law 96–388 (36 U.S.C. 1401), as amended, $31,707,000 of which $1,575,000 for the museum’s repair and rehabilitation program and $1,264,000 for the museum’s exhibitions program shall remain available until expended.</content> </appropriations> </appropriations> </appropriations> <num value="III">TITLE III—</num><heading>GENERAL PROVISIONS</heading> <section> <num value="301"><inline class="smallCaps">Sec</inline>. 301. </num><content class="inline">The expenditure of any appropriation under this<sidenote><p class="indent0 firstIndent0 fontsize8">Contracts.</p><p class="indent0 firstIndent0 fontsize8">Public information.</p></sidenote> Act for any consulting service through procurement contract, pursuant to 5 U.S.C. 3109, shall be limited to those contracts where such expenditures are a matter of public record and available for public inspection, except where otherwise provided under existing law, or under existing Executive order issued pursuant to existing law.</content> </section> <section> <num value="302"><inline class="smallCaps">Sec</inline>. 302. </num><content class="inline">No part of any appropriation under this Act shall be available to the Secretary of the Interior or the Secretary of Agriculture for the leasing of oil and natural gas by noncompetitive bidding on publicly owned lands within the boundaries of the Shawnee National Forest, Illinois: <proviso><i>Provided,</i> That nothing herein is intended to inhibit or otherwise affect the sale, lease, or right to access to minerals owned by private individuals.</proviso></content> </section> <section> <num value="303"><inline class="smallCaps">Sec</inline>. 303. </num><content class="inline">No part of any appropriation contained in this Act shall be available for any activity or the publication or distribution of literature that in any way tends to promote public support or opposition to any legislative proposal on which congressional action is not complete.</content> </section> <section> <num value="304"><inline class="smallCaps">Sec</inline>. 304. </num><content class="inline">No part of any appropriation contained in this Act shall remain available for obligation beyond the current fiscal year unless expressly so provided herein.<page identifier="/us/stat/111/1590">111 STAT. 1590</page></content> </section> <section> <num value="305"><inline class="smallCaps">Sec</inline>. 305. </num><content class="inline">None of the funds provided in this Act to any department or agency shall be obligated or expended to provide a personal cook, chauffeur, or other personal servants to any officer or employee of such department or agency except as otherwise provided by law.</content> </section> <section> <num value="306"><inline class="smallCaps">Sec</inline>. 306. </num><content class="inline">No assessments may be levied against any program, budget activity, subactivity, or project funded by this Act unless advance notice of such assessments and the basis therefor are presented to the Committees on Appropriations and are approved by such committees.</content> </section> <section> <num value="307"><inline class="smallCaps">Sec</inline>. 307. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Compliance With Buy American Act</inline>.—</heading><content>None of the funds made available in this Act may be expended by an entity unless the entity agrees that in expending the funds the entity will comply with sections 2 through 4 of the Act of March 3, 1933 (41 U.S.C. 10a–10c; popularly known as the “Buy American Act”).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Sense of Congress; Requirement Regarding Notice</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Purchase of american-made equipment and products</inline>.—</heading><content>In the case of any equipment or product that may be authorized to be purchased with financial assistance provided using funds made available in this Act, it is the sense of the Congress that entities receiving the assistance should, in expending the assistance, purchase only American-made equipment and products.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Notice to recipients of assistance</inline>.—</heading><content>In providing financial assistance using funds made available in this Act, the head of each Federal agency shall provide to each recipient of the assistance a notice describing the statement made in paragraph (1) by the Congress.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Prohibition of Contracts With Persons Falsely Labeling Products as Made in America</inline>.—</heading><content>If it has been finally determined by a court or Federal agency that any person intentionally affixed a label bearing a “Made in America” inscription, or any inscription with the same meaning, to any product sold in or shipped to the United States that is not made in the United States, the person shall be ineligible to receive any contract or subcontract made with funds made available in this Act, pursuant to the debarment, suspension, and ineligibility procedures described in sections 9.400 through 9.409 of title 48, Code of Federal Regulations.</content> </subsection> </section> <section> <num value="308"><inline class="smallCaps">Sec</inline>. 308. </num><content class="inline">None of the funds in this Act may be used to plan, prepare, or offer for sale timber from trees classified as giant sequoia (Sequoiadendron giganteum) which are located on National Forest System or Bureau of Land Management lands in a manner different than such sales were conducted in fiscal year 1995.</content> </section> <section> <num value="309"><inline class="smallCaps">Sec</inline>. 309. </num><content class="inline">None of the funds made available by this Act may be obligated or expended by the National Park Service to enter into or implement a concession contract which permits or requires the removal of the underground lunchroom at the Carlsbad Caverns National Park.</content> </section> <section> <num value="310"><inline class="smallCaps">Sec</inline>. 310.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t25/s450e–2">25 USC 450e–2</ref>.</p></sidenote> <content class="inline">Beginning in fiscal year 1998 and thereafter, where the actual costs of construction projects under self-determination contracts, compacts, or grants, pursuant to Public Laws 93–638, 103–413, or 100–297, are less than the estimated costs thereof, use of the resulting excess funds shall be determined by the appropriate Secretary after consultation with the tribes.</content> </section> <section> <num value="311"><inline class="smallCaps">Sec</inline>. 311.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t25/s450l">25 use 450<i>l</i> note</ref>.</p></sidenote> <content class="inline">Notwithstanding Public Law 103–413, quarterly payments of funds to tribes and tribal organizations under annual <page identifier="/us/stat/111/1591">111 STAT. 1591</page>funding agreements pursuant to section 108 of Public Law 93–638, as amended, beginning in fiscal year 1998 and therafter, may be made on the first business day following the first day of a fiscal quarter.</content> </section> <section> <num value="312"><inline class="smallCaps">Sec</inline>. 312. </num><content class="inline">None of the funds appropriated or otherwise made available by this Act may be used for the AmeriCorps program, unless the relevant agencies of the Department of the Interior and/or Agriculture follow appropriate reprogramming guidelines: <proviso><i>Provided,</i> That if no funds are provided for the AmeriCorps program by the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998, then none of the funds appropriated or otherwise made available by this Act may be used for the AmeriCorps programs.</proviso></content> </section> <section> <num value="313"><inline class="smallCaps">Sec</inline>. 313. </num><content class="inline">None of the funds made available in this Act may be used: (1) to demolish the bridge between Jersey City, New Jersey, and Ellis Island; or (2) to prevent pedestrian use of such bridge, when it is made known to the Federal official having authority to obligate or expend such funds that such pedestrian use is consistent with generally accepted safety standards.</content> </section> <section> <num value="314"><inline class="smallCaps">Sec</inline>. 314. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Limitation of Funds</inline>.—</heading><content>None of the funds appropriated or otherwise made available pursuant to this Act shall e obligated or expended to accept or process applications for a patent for any mining or mill site claim located under the general mining laws.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Exceptions</inline>.—</heading><content>The provisions of subsection (a) shall not apply if the Secretary of the Interior determines that, for the claim concerned: (1) a patent application was filed with the Secretary on or before September 30, 1994; and (2) all requirements established under sections 2325 and 2326 of the Revised Statutes (30 U.S.C. 29 and 30) for vein or lode claims and sections 2329, 2330, 2331, and 2333 of the Revised Statutes (30 U.S.C. 35, 36, and 37) for placer claims, and section 2337 of the Revised Statutes (30 U.S.C. 42) for mill site claims, as the case may be, were fully complied with by the applicant by that date.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Report</inline>.—</heading><content>On September 30, 1998, the Secretary of the Interior shall file with the House and Senate Committees on Appropriations and the Committee on Resources of the House of Representatives and the Committee on Energy and Natural Resources of the Senate a report on actions taken by the Department under the plan submitted pursuant to section 314(c) of the Department of the Interior and Related Agencies Appropriations Act, 1997 (Public Law 104–208).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Mineral Examinations</inline>.—</heading><content>In order to process patent applications in a timely and responsible manner, upon the request of a patent applicant, the Secretary of the Interior shall allow the applicant to fund a qualified third-party contractor to be selected by the Bureau of Land Management to conduct a mineral examination of the mining claims or mill sites contained in a patent application as set forth in subsection (b). The Bureau of Land Management shall have the sole responsibility to choose and pay the third-party contractor in accordance with the standard procedures employed by the Bureau of Land Management in the retention of third-party contractors.</content> </subsection> </section> <section> <num value="315"><inline class="smallCaps">Sec</inline>. 315. </num><content class="inline">None of the funds appropriated or otherwise made available by this Act may be used for the purposes of acquiring lands in the counties of Gallia, Lawrence, Monroe, or Washington, Ohio, for the Wayne National Forest.<page identifier="/us/stat/111/1592">111 STAT. 1592</page></content> </section> <section> <num value="316"><inline class="smallCaps">Sec</inline>. 316.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s3102">16 USC 3102 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Subsistence Hunting and Fishing in Alaska</inline>.</heading> <subsection class="inline"><num value="a">(a) </num><content>Moratorium on Federal Management.—None of the funds made available to the Department of the Interior or the Department of Agriculture by this or any other Act hereafter enacted may be used prior to December 1, 1998 to issue or implement final regulations, rules, or policies pursuant to title VIII of the Alaska National Interest Lands Conservation Act to assert jurisdiction, management, or control over the navigable waters transferred to the State of Alaska pursuant to the Submerged Lands Act of 1953 or the Alaska Statehood Act of 1959.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Amendments to Alaska National Interest Lands Conservation Act</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Amendment of anilca</inline>.—</heading><content>Except as otherwise expressly provided, whenever in this subsection an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Alaska National Interest Lands Conservation Act (16 U.S.C. 3101 et seq.).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><content>Section 102(2) (16 U.S.C. 3102(2)) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The term ‘Federal land’ means lands the title to which is in the United States after December 2, 1980. ‘Federal land’ does not include lands the title to which is in the State, an Alaska Native corporation, or other private ownership.”.</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>Section 801 (16 U.S.C. 3111) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by inserting “<quotedText>(a)</quotedText>” immediately before “The Congress finds and declares”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by inserting at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><chapeau>The Congress finds and declares further that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>subsequent to the enactment of this Act in 1980, the subsistence law of the State of Alaska (AS 16.05) accomplished the goals of Congress and requirements of this Act in providing subsistence use opportunities for rural residents of Alaska, both Alaska Native and non-Alaska Native;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>the Alaska subsistence law was challenged in Alaska courts, and the rural preference requirement in the law was found in 1989 by the Alaska Supreme Court in McDowell v. State of Alaska (785 P.2d 1, 1989) to violate the Alaska Constitution;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>since that time, repeated attempts to restore the validity of the State law through an amendment to the Alaska Constitution have failed, and the people of Alaska have not been given the opportunity to vote on such an amendment;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>in accordance with title VIII of this Act, the Secretary of the Interior is required to manage fish and wildlife for subsistence uses on all public lands in Alaska because of the failure of State law to provide a rural preference;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><content>the Ninth Circuit Court of Appeals determined in 1995 in State of Alaska v. Babbitt (73 F.3d 698) that the subsistence priority required on public lands under section 804 of this Act applies to navigable waters in which the United States has reserved water rights as identified by the Secretary of the Interior;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6) </num><content>management of fish and wildlife resources by State governments has proven successful in all 50 States, including Alaska, and the State of Alaska should have the opportunity <page identifier="/us/stat/111/1593">111 STAT. 1593</page>to continue to manage such resources on all lands, including public lands, in Alaska in accordance with this Act, as amended; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7) </num><content>it is necessary to amend portions of this Act to restore the original intent of Congress to protect and provide for the continued opportunity for subsistence uses on public lands for Alaska Native and non-Alaska Native rural residents through the management of the State of Alaska.”.</content></paragraph> </subsection> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><heading><inline class="smallCaps">Title viii definitions</inline>.—</heading><chapeau>Section 803 (16 U.S.C. 3113) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking “<quotedText>and</quotedText>” at the end of paragraph (1);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking the period and inserting a semicolon at the end of paragraph (2); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>by inserting at the end the following new paragraphs: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>‘customary and traditional uses’ means the noncommercial, long-term, and consistent taking of, use of, or reliance upon fish and wildlife in a specific area and the patterns and practices of taking or use of that fish and wildlife that have been established over a reasonable period of time, taking into consideration the availability of the fish and wildlife;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>‘customary trade’ means, except for money sales of furs and furbearers, the limited noncommercial exchange for money of fish and wildlife or their parts in minimal quantities; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><content>‘rural Alaska resident’ means a resident of a rural community or area. A ‘rural community or area’ means a community or area substantially dependent on fish and wildlife for nutritional and other subsistence uses.”.</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><heading><inline class="smallCaps">Preference for subsistence uses</inline>.—</heading><chapeau>Section 804 (16 U.S.C. 3114) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by inserting “<quotedText>(a)</quotedText>” immediately before the first sentence; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by inserting at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><content>The priority granted by this section is for a reasonable opportunity to take fish and wildlife. For the purposes of this subsection, the term ‘reasonable opportunity’ means an opportunity, consistent with customary and traditional uses (as defined in section 803(3)), to participate in a subsistence hunt or fishery with a reasonable expectation of success, and does not mean a guarantee that fish and wildlife will be taken.”.</content> </subsection> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><heading><inline class="smallCaps">Local and regional participation</inline>.—</heading><chapeau>Section 805 (16 U.S.C. 3115) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>in subsection (a) by striking “<quotedText>one year after the date of enactment of this Act,</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by amending subsection (d) to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num><paragraph class="inline"><num value="1">(1) </num><content>Upon certification by the Secretary that the State has enacted and implemented laws of general applicability which are consistent with, and which provide for the definition, preference, and participation specified in sections 803, 804, and 805, the Secretary shall not implement subsections (a), (b), and (c) of this section, and the State may immediately assume management for the taking of fish and wildlife on the public lands for subsistence uses pursuant to this title. Upon assumption of such management by the State, the Secretary shall not implement subsections (a), (b), and (c) of this section unless a court of competent jurisdiction <page identifier="/us/stat/111/1594">111 STAT. 1594</page>determines that such laws have been repealed, modified, or implemented in a way that is inconsistent with, or does not provide for, the definition, preference, and participation specified in sections 803, 804, and 805, or that the State has failed to cure any such inconsistency after such determination. The State laws shall otherwise supercede such sections insofar as such sections govern State responsibility pursuant to this title for the taking of fish and wildlife on the public lands for subsistence uses. The Secretary may bring a judicial action to enforce this subsection.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2)</num><subparagraph class="inline"><num value="A">(A) </num><content>Laws establishing a system of local advisory committees and regional advisory councils consistent with section 805 shall provide that the State rulemaking authority shall consider the advice and recommendations of the regional councils concerning the taking of fish and wildlife populations on public lands within their respective regions for subsistence uses. The regional councils may present recommendations, and the evidence upon which such recommendations are based, to the State rulemaking authority during the course of the administrative proceedings of such authority. The State rulemaking authority may choose not to follow any recommendation which it determines is not supported by substantial evidence presented during the course of its administrative proceedings, violates recognized principles of fish and wildlife conservation or would be detrimental to the satisfaction of rural subsistence needs. If a recommendation is not adopted by the State rulemaking authority, such authority shall set forth the factual basis and the reasons for its decision.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><content>The members of each regional advisory council established under this subsection shall be appointed by the Governor of Alaska. Each council shall have ten members, four of whom shall be selected from nominees who reside in the region submitted by tribal councils in the region, and six of whom shall be selected from nominees submitted by local governments and local advisory committees. Three of these six shall be subsistence users who reside in the subsistence resource region and three shall be sport or commercial users who may be residents of any subsistence resource region. Regional council members shall have staggered terms of three years in length, with no limit on the number of terms a member may serve. A quorum shall be a majority of the members of the council.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><heading><inline class="smallCaps">Judicial enforcement</inline>.—</heading><content>Section 807 (16 U.S.C. 3117) is amended by inserting the following as subsection (b): <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><content>State agency actions may be declared invalid by the court only if they are arbitrary, capricious, or an abuse of discretion, or otherwise not in accordance with law. When reviewing any action within the specialized knowledge of a State agency, the court shall give the decision of the State agency the same deference it would give the same decision of a comparable Federal agency.”.</content> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><heading><inline class="smallCaps">Regulations</inline>.—</heading><chapeau>Section 814 (16 U.S.C. 3124) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by inserting “<quotedText>, and the State at any time the State has complied with section 805(d)</quotedText>” after “Secretary”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by adding at the end the following new sentence: “During any time that the State has complied with section 805(d), the Secretary shall not make or enforce regulations implementing section 805(a), (b), or (c).”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><heading><inline class="smallCaps">Limitations, savings clauses</inline>.—</heading><chapeau>Section 815 (16 U.S.C. 3125) is amended—<page identifier="/us/stat/111/1595">111 STAT. 1595</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking “<quotedText>or</quotedText>” at the end of paragraph (3);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking the period at the end of paragraph (4) and inserting in lieu thereof a semicolon and “or”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>by inserting at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><content>prohibiting the Secretary or the State from entering into co-management agreements with Alaska Native organizations or other local or regional entities when such organization or entity is managing fish and wildlife on public lands in Alaska for subsistence uses.”.</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Savings Clause</inline>.—</heading><chapeau>No provision of this section, amendment<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s3102">16 USC 3102 note</ref>.</p></sidenote> made by this section, or exercise of authority pursuant to this section may be construed to validate, invalidate, or in any way affect—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>any assertion that an Alaska Native organization (including a federally recognized tribe, traditional Alaska Native council, or Alaska Native council organized pursuant to the Act of June 18, 1934 (25 U.S.C. 461 et seq.), as amended) has or does not have governmental authority over lands (including management of, or regulation of the taking of, fish and wildlife) or persons within the boundaries of the State of Alaska;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>any assertion that Indian country, as defined in section 1151 of title 18, United States Code, exists or does not exist within the boundaries of the State of Alaska;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>any assertion that the Alaska National Interest Lands Conservation Act, as amended (16 U.S.C. 3101 et seq.) is or is not Indian law; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>the authority of the Secretary of the Interior under section 1314(c) of the Alaska National Interest Lands Conservation Act (16 U.S.C. 3202(c)).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>Unless and until laws are adopted in<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s3102">16 USC 3102 note</ref>.</p></sidenote> the State of Alaska which provide for the definition, preference, and participation specified in sections 803, 804, and 805 of the Alaska National Interest Lands Conservation Act (16 U.S.C. 3111 et seq.), the amendments made by subsection (b) of this section shall be effective only for the purposes of determining whether the State’s laws provide for such definition, preference, and participation. The Secretary shall certify before December 1, 1998 if such<sidenote><p class="indent0 firstIndent0 fontsize8">Certification.</p><p class="indent0 firstIndent0 fontsize8">Alaska.</p></sidenote> laws have been adopted in the State of Alaska. Subsection (b) shall be repealed on such date if such laws have not been adopted.</content> </subsection> </section> <section> <num value="317"><inline class="smallCaps">Sec</inline>. 317. </num><content class="inline">Section 909(b)(2) of division II, title IX of Public Law 104–333 is amended by striking the following: “For technical<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s461">16 USC 461 note</ref>.</p></sidenote> assistance pursuant to section 908, not more than $50,000 annually.”.</content> </section> <section> <num value="318"><inline class="smallCaps">Sec</inline>. 318. </num><content class="inline">No part of any appropriation contained in this Act shall be expended or obligated to fund the activities of the western director and special assistant to the Secretary within the Office of the Secretary of Agriculture that exceeds the funding provided for these activities from this Act during fiscal year 1997.</content> </section> <section> <num value="319"><inline class="smallCaps">Sec</inline>. 319. </num><content class="inline">Notwithstanding any other provision of law, for fiscal year 1998 the Secretaries of Agriculture and the Interior are authorized to limit competition for watershed restoration project contracts as part of the “Jobs in the Woods” component of the President’s Forest Plan for the Pacific Northwest to individuals and entities in historically timber-dependent areas in the States of Washington, <page identifier="/us/stat/111/1596">111 STAT. 1596</page>Oregon, and northern California that have been affected by reduced timber harvesting on Federal lands.</content> </section> <section> <num value="320"><inline class="smallCaps">Sec</inline>. 320. </num><subsection class="inline"><num value="a">(a) </num><content>Section 101(c) of Public Law 104–134 is amended as follows: Under the heading “TITLE III—GENERAL PROVISIONS”<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s460l–6a">16 USC 460<i>l</i>–6a note</ref>.</p></sidenote> amend section 315(c)(1) by striking subparagraphs (A) and (B) and inserting: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>Eighty percent to a special account in the Treasury for use without further appropriation, by the agency which administers the site, to remain available for expenditure in accordance with paragraph (2)(A).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>Twenty percent to a special account in the Treasury for use without further appropriation, by the agency which administers the site, to remain available for expenditure in accordance with paragraph (2)(B).”.</content></subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><content>Subparagraph (C) of section 315(c)(1) is amended by inserting “<quotedText>and the National Park Service</quotedText>” after “the Fish and Wildlife Service”.</content> </subsection> </section> <section> <num value="321"><inline class="smallCaps">Sec</inline>. 321. </num><content class="inline">None of the funds collected under the Recreational Fee Demonstration program may be used to plan, design, or construct a visitor center or any other permanent structure without prior approval of the House and the Senate Committees on Appropriations if the estimated total cost of the facility exceeds $500,000.</content> </section> <section> <num value="322"><inline class="smallCaps">Sec</inline>. 322. </num><content class="inline">Section 303(d)(1) of Public Law 96–451 (16 U.S.C. 1606a(d)(1) is amended by inserting before the semicolon the following: “and other forest stand improvement activities to enhance forest health and reduce hazardous fuel loads of forest stands in the National Forest System”.</content> </section> <section> <num value="323"><inline class="smallCaps">Sec</inline>. 323.</num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> <subsection class="inline"><num value="a">(a) </num><chapeau>Prior to the completion of any decision document or the making of any decision related to the final Environmental Impact Statements (hereinafter “final EISs”) associated with the Interior Columbia Basin Ecosystem Project (hereinafter the “Project”), the Secretary of Agriculture and the Secretary of the Interior shall prepare and submit to the Committees on Appropriations of the Senate and the House of Representatives a report that shall include:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>a detailed description of any and all land and resource management planning and policy or project decisions to be made, by type and by the level of official responsible, and the procedures for such decisions to be undertaken, by the Forest Service, Bureau of Land Management, and Fish and Wildlife Service pursuant to the National Forest Management Act, Federal Land Policy and Management Act, Endangered Species Act, National Environmental Policy Act and any other applicable law in order to authorize and implement actions affecting the environment on Federal lands within the jurisdiction of either Secretary in the Project area that are consistent with the final EISs;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>a detailed estimation of the time and cost (for all participating Federal agencies) to accomplish each decision described in paragraph (1), from the date of initiation of preparations for, to the date of publication or announcement of, the decision, including a detailed statement of the source of funds for each such decision and any reprogramming in fiscal year 1998;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>estimated production of goods and services from each unit of the Federal lands for the first 5 years during the <page identifier="/us/stat/111/1597">111 STAT. 1597</page>course of the decision making described in paragraph (1) beginning with the date of publication of the applicable final EIS; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>if the requirements described in paragraphs (1) through (3) cannot be accomplished within the appropriations provided in this Act, adjusted only for inflation, in subsequent fiscal years and without any reprogramming of such appropriations, provide a detailed description of the decision making process that will be used to establish priorities in accordance with such appropriations.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><content>Using all research information available from the area encompassed by the Project, the Secretaries, to the extent practicable, shall analyze the economic and social conditions, and culture and customs, of the communities at the sub-basin level within the Project area and the impacts the alternatives in the draft EISs will have on those communities. This analysis shall be published<sidenote><p class="indent0 firstIndent0 fontsize8">Publication.</p></sidenote> on a schedule that will allow a reasonable period of time for public comment thereon prior to the close of the comment periods on the draft EISs. The analysis, together with the response of the Secretaries to the public comment, shall be incorporated in the final EISs and, subject to subsection (a), subsequent decisions related thereto.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><content>Nothing in this section shall be construed as altering or affecting in any manner any provision of applicable land or resource management plans, PACFISH, INFISH, Eastside screens, and other policies adopted by the Forest Service or Bureau of Land Management prior to the date of enactment of this Act to protect wildlife, watershed, riparian, and other resources of the Federal lands.</content> </subsection> </section> <section> <num value="324"><inline class="smallCaps">Sec</inline>. 324. </num><content class="inline">Notwithstanding section 904(b) of Public Law 104–333,<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s461">16 USC 461 note</ref>.</p></sidenote> hereafter, the Heritage Area established under section 904 of title IX of division II of Public Law 104–333 shall include any portion of a city, town, or village within an area specified in section 904(b)(2) of that Act only to the extent that the government of the city, town, or village, in a resolution of the governing board or council, agrees to be included and submits the resolution to the Secretary of the Interior and the management entities for the Heritage Area and to the extent such resolution is not subsequently revoked in the same manner.</content> </section> <section> <num value="325"><inline class="smallCaps">Sec</inline>. 325. </num><subsection class="inline"><num value="a">(a) </num><content>Notwithstanding any other provision of law, and except as provided in this section, the Aleutian/Pribilof Islands Association, Inc., Bristol Bay Area Health Corporation, Chugachmiut, Copper River Native Association, Kodiak Area Native Area Association, Maniilaq Association, Metlakatla Indian Community, Arctic Slope Native Association, Ltd., Norton Sound Health Corporation, Southcentral Foundation, Southeast Alaska Regional Health Consortium, Tanana Chiefs Conference, Inc., and Yukon-Kuskokwim Health Corporation (hereinafter “regional health entities”), without further resolutions from the Regional Corporations, Village Corporations, Indian Reorganization Act Councils, tribes and/or villages which they represent are authorized to form a consortium (hereinafter “the Consortium”) to enter into contracts, compacts, or funding agreements under Public Law 93–638 (25 U.S.C. 450 et seq.), as amended, to provide all statewide health services provided by the Indian Health Service of the Department of Health and Human Services through the Alaska Native Medical Center and the Alaska Area Office. Each specified “regional health entity” shall maintain that status for purposes of participating <page identifier="/us/stat/111/1598">111 STAT. 1598</page>in the Consortium only so long as it operates a regional health program for the Indian Health Service under Public Law 93–638 (25 U.S.C. 450 et seq.), as amended.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><content>The Consortium shall be governed by a 15-member Board of Directors, which shall be composed of one representative of each regional health entity listed in subsection (a) above, and two additional persons who shall represent Indian tribes, as defined in 25 U.S.C. 450b(e), and sub-regional tribal organizations which operate health programs not affiliated with the regional health entities listed above and Indian tribes not receiving health services from any tribal, regional or sub-regional health provider. Each member of the Board of Directors shall be entitled to cast one vote. Decisions of the Board of Directors shall be made by consensus whenever possible, and by majority vote in the event that no consensus can be reached. The Board of Directors shall establish at its first meeting its rules of procedure, which shall be published and made available to all members.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><content>The statewide health services (including any programs, functions, services and activities provided as part of such services) of the Alaska Native Medical Center and the Alaska Area Office may only be provided by the Consortium. Statewide health services for purposes of this section shall consist of all programs, functions, services, and activities provided by or through the Alaska Native Medical Center and the Alaska Area Office, not under contract or other funding agreement with any other tribe or tribal organization as of October 1, 1997, except as provided in subsection (d) below. All statewide health services provided by the Consortium under this section shall be provided pursuant to contracts or funding agreements entered into by the Consortium under Public Law 93638 (25 U.S.C. 450 et seq.), as amended, and for such purpose the Consortium shall be deemed to have mature contract status as defined in section 4(h) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b(h)).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><content>Cook Inlet Region, Inc., through Southcentral Foundation (or any successor health care entity designated by Cook Inlet Region, Inc.) pursuant to Public Law 93–638 (25 U.S.C. 450 et seq.), as amended, is hereby authorized to enter into contracts or funding agreements under such Public Law for all services provided at or through the Alaska Native Primary Care Center or other satellite clinics in Anchorage or the Matanuska-Susitna Valley without submission of any further authorizing resolutions from any other Alaska Native Region, village corporation, Indian Reorganization Act council, or tribe, no matter where located. Services provided under this paragraph shall, at a minimum, maintain the level of statewide and Anchorage Service Unit services provided at the Alaska Native Primary Care Center as of October 1, 1997, including necessary related services performed at the Alaska Native Medical Center. In addition, Cook Inlet Region, Inc., through Southcentral Foundation, or any lawfully designated health care entity of Cook Inlet Region, Inc., shall contract or enter into a funding agreement under Public Law 93–638 (25 U.S.C. 450 et seq.), as amended, for all primary care services provided by the Alaska Native Medical Center, including, but not limited to, family medicine, primary care internal medicine, pediatrics, obstetrics and gynecology, physical therapy, psychiatry, emergency services, public health nursing, health education, optometry, dentistry, audiology, social services, pharmacy, radiology, laboratory and biomedical, and <page identifier="/us/stat/111/1599">111 STAT. 1599</page>the administrative support for these programs, functions, services and activities. Cook Inlet Region, Inc., through Southcentral Foundation, or any lawfully designated health care entity of Cook Inlet Region, Inc., may provide additional health care services at the Alaska Native Medical Center if such use and services are provided pursuant to an agreement with the Consortium. All services covered by this subsection shall be provided on a nondiscriminatory basis without regard to residency within the Municipality of Anchorage.</content> </subsection> </section> <section> <num value="326"><inline class="smallCaps">Sec</inline>. 326. </num><subsection class="inline"><num value="a">(a) </num><content>Notwithstanding any other provision of law, after September 30, 1997 the Indian Health Service may not disburse funds for the provision of health care services pursuant to Public Law 93–638 (25 U.S.C. 450 et seq.), with any Alaska Native village or Alaska Native village corporation that is located within the area served by an Alaska Native regional health entity.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><content>Nothing in this section shall be construed to prohibit the disbursal of funds to any Alaska Native village or Alaska Native village corporation under any contract or compact entered into prior to August 27, 1997, or to prohibit the renewal of any such agreement.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><content>The General Accounting Office shall conduct a study of the impact of contracting and compacting by the Indian Health Service under Public Law 93–638 with Alaska Native villages and Alaska Native village corporations for the provision of health care services by Alaska Native regional corporation health care entities. The General Accounting Office shall submit the results of that study to the Committee on Appropriations of the Senate and the Committee on Appropriations of the House of Representatives by June 1, 1998.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><chapeau>Section 1004 of the Coast Guard Authorization Act of 1996 (Public Law 104–324; 110 Stat. 3956) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subsection (a) by striking “<quotedText>for use as a health or social services facility</quotedText>” and inserting “<quotedText>for sale or use other than for a facility for the provision of health programs funded by the Indian Health Service (not including any such programs operated by Ketchikan Indian Corporation prior to 1993)</quotedText>”, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking subsection (c).</content></paragraph> </subsection> </section> <section> <num value="327"><inline class="smallCaps">Sec</inline>. 327. </num><content>None of the funds made available by this Act may be used to require any person to vacate real property where a term is expiring under a use and occupancy reservation in Sleeping Bear Dunes National Lakeshore until such time as the National Park Service (NPS) indicates to the appropriate congressional committees and the holders of these reservations that it has sufficient funds to remove the residence on that property within 90 days of that residence being vacated. The NPS will provide at least 90 days notice to the holders of expired reservations to allow them time to leave the residence. The NPS will charge fair market value rental rates while any occupancy continues beyond an expired reservation. Reservation holders who stay beyond the expiration date will also be required to pay for appraisals to determine current fair market value rental rates, any rehabilitation needed to ensure suitability for occupancy, appropriate insurance, and all continuing utility costs.</content> </section> <section> <num value="327a"><inline class="smallCaps">Sec</inline>. 327A. </num><subsection class="inline"><num value="a">(a) </num><content>None of the funds made available in this Act or any other Act providing appropriations for the Department of the Interior, the Forest Service or the Smithsonian Institution may be used to submit nominations for the designation of Biosphere <page identifier="/us/stat/111/1600">111 STAT. 1600</page>Reserves pursuant to the Man and Biosphere program administered by the United Nations Educational, Scientific, and Cultural Organization.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><content>The provisions of this section shall be repealed upon enactment of subsequent legislation specifically authorizing United States participation in the Man and Biosphere program.</content> </subsection> </section> <section> <num value="328"><inline class="smallCaps">Sec</inline>. 328.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s459j–4">16 USC 459j–4 note</ref>.</p></sidenote><content>None of the funds made available in this or any other Act for any fiscal year may be used to designate, or to post any sign designating, any portion of Canaveral National Seashore in Brevard County, Florida, as a clothing-optional area or as an area in which public nudity is permitted, if such designation would be contrary to county ordinance.</content> </section> <section> <num value="329"><inline class="smallCaps">Sec</inline>. 329.</num><sidenote><p class="indent0 firstIndent0 fontsize8">Grants.</p></sidenote><chapeau>Of the funds provided to the National Endowment for the Arts:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The Chairperson shall only award a grant to an individual if such grant is awarded to such individual for a literature fellowship, National Heritage Fellowship, or American Jazz Masters Fellowship.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote><content>The Chairperson shall establish procedures to ensure that no funding provided through a grant, except a grant made to a State or local arts agency, or regional group, may be used to make a grant to any other organization or individual to conduct activity independent of the direct grant recipient. Nothing in this subsection shall prohibit payments made in exchange for goods and services.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>No grant shall be used for seasonal support to a group, unless the application is specific to the contents of the season, including identified programs and/or projects.</content></paragraph> </section> <section> <num value="330"><inline class="smallCaps">Sec</inline>. 330. </num><content class="inline">The National Endowment for the Arts and the National Endowment for the Humanities are authorized to solicit, accept, receive, and invest in the name of the United States, gifts, bequests, or devises of money and other property or services and to use such in furtherance of the functions of the National Endowment for the Arts and the National Endowment for the Humanities. Any proceeds from such gifts, bequests, or devises, after acceptance by the National Endowment for the Arts or the National Endowment for the Humanities, shall be paid by the donor or the representative of the donor to the Chairman. The Chairman shall enter the proceeds in a special interest-bearing account to the credit of the appropriate Endowment for the purposes specified in each case.</content> </section> <section> <num value="331"><inline class="smallCaps">Sec</inline>. 331. </num><content class="inline">In fiscal years 1998 through 2002, the Secretaries of the Interior and Agriculture may make reciprocal delegations of their respective authorities, duties and responsibilities in support of joint pilot programs to promote customer service and efficiency in the management of public lands and national forests: <proviso><i>Provided,</i> That nothing herein shall alter, expand or limit the existing applicability of any public law or regulation to lands administered by the Bureau of Land Management or the Forest Service.</proviso></content> </section> <section> <num value="332"><inline class="smallCaps">Sec</inline>. 332. </num><content class="inline">No part of any appropriation contained in this Act shall be expended or obligated to fund new revisions of national forest land management plans until new final or interim final rules for forest land management planning are published in the Federal Register. Those national forests which are currently in a revision process, having formally published a Notice of Intent to revise prior to October 1, 1997, or having been court-ordered to revise, are exempt from this section and may utilize funds <page identifier="/us/stat/111/1601">111 STAT. 1601</page>in this Act and proceed to complete the forest plan revision in accordance with current forest planning regulations.</content> </section> <section> <num value="333"><inline class="smallCaps">Sec</inline>. 333. </num><content class="inline">No part of any appropriation contained in this Act shall be expended or obligated to complete and issue the five-year program under the Forest and Rangeland Renewable Resources Planning Act.</content> </section> <section> <num value="334"><inline class="smallCaps">Sec</inline>. 334. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Watershed Restoration and Enhancement Agreements</inline>.—</heading><content>For fiscal year 1998, appropriations for the Forest Service may be used by the Secretary of Agriculture for the purpose of entering into cooperative agreements with willing State and local governments, private and nonprofit entities and landowners for protection, restoration and enhancement of fish and wildlife habitat, and other resources on public or private land or both that benefit these resources within the watershed.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Direct and Indirect Watershed Agreements</inline>.—</heading><chapeau>The Secretary of Agriculture may enter into a watershed restoration and enhancement agreement—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>directly with a willing private landowner; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>indirectly through an agreement with a State, local or tribal government or other public entity, educational institution, or private nonprofit organization.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Terms and Conditions</inline>.—</heading><chapeau>In order for the Secretary to enter into a watershed restoration and enhancement agreement—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>the agreement shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>include such terms and conditions mutually agreed to by the Secretary and the landowner;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>improve the viability of and otherwise benefit the fish, wildlife, and other resources on national forests lands within the watershed;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>authorize the provision of technical assistance by the Secretary in the planning of management activities that will further the purposes of the agreement;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>provide for the sharing of costs of implementing the agreement among the Federal Government, the landowner(s), and other entities, as mutually agreed on by the affected interests; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E) </num><content>ensure that any expenditure by the Secretary pursuant to the agreement is determined by the Secretary to be in the public interest; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the Secretary may require such other terms and conditions as are necessary to protect the public investment on non-Federal lands, provided such terms and conditions are mutually agreed to by the Secretary and other landowners, State and local governments or both.</content></paragraph> </subsection> </section> <section> <num value="335"><inline class="smallCaps">Sec</inline>. 335. </num><chapeau>The joint resolution entitled “Joint Resolution to<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s431">16 USC 431 note</ref>.</p></sidenote> establish a commission to formulate plans for a memorial to Franklin Delano Roosevelt”, approved August 11, 1955 (69 Stat. 694), is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in the first section by inserting before the last sentence the following: “The Commission shall submit a final report to the President and Congress prior to termination.”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by redesignating section 4 as section 5; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by inserting after section 3 the following: <quotedContent> <level> <heading class="centered">“<inline class="smallCaps">termination of the commission</inline></heading> <section> <num value="4">“<inline class="smallCaps">Sec</inline>. 4. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>The Commission shall terminate on the earlier of—<page identifier="/us/stat/111/1602">111 STAT. 1602</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>December 31, 1997; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>the date that the Commission reports to the President and the Congress that the Commission’s work is complete.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Commission Funds</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">Designation</inline>.—</heading><content>Before the termination of the Commission, the Commission shall designate a nonprofit organization to collect, manage, and expend Commission funds after its termination.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">Transfer of funds</inline>.—</heading><content>Before termination the Commission shall transfer all Commission funds to the entity designated under paragraph (1).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><heading><inline class="smallCaps">Amounts collected after termination</inline>.—</heading><chapeau>The entity designated under paragraph (1) shall have the right to collect any amounts accruing to the Commission after the Commission’s termination, including amounts—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>given to the Commission as a gift or bequest; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>raised from the sale of coins issued under the United States Commemorative Coin Act of 1996 (110 Stat. 4005; 31 U.S.C. 5112 note).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><heading><inline class="smallCaps">Uses of funds</inline>.—</heading><chapeau>The Commission may specify uses for any funds made available under this section to the entity designated under paragraph (1), including—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>to provide for the support, maintenance, and repair of the Memorial; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>to interpret and educate the public about the Memorial.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><heading><inline class="smallCaps">Negotiation and contract</inline>.—</heading><content>The Commission may negotiate and contract with a nonprofit organization before designating the organization under paragraph (1).”.</content></paragraph> </subsection> </section> </level> </quotedContent> </content></paragraph> </section> <section> <num value="336"><inline class="smallCaps">Sec</inline>. 336.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s544g">16 USC 544g note</ref>.</p></sidenote> <content class="inline">To facilitate priority land exchanges through which the United States will receive land within the White Salmon Wild and Scenic River boundaries and within the Columbia River Gorge National Scenic Area, the Secretary of Agriculture may, until September 30, 2000, accept title to such lands deemed appropriate by the Secretary within the States of Oregon and Washington, regardless of the State in which the transferred lands are located, following existing exchange authorities.</content> </section> <section> <num value="337"><inline class="smallCaps">Sec</inline>. 337. </num><content class="inline">The boundary of the Wenatchee National Forest in Chelan County, Washington, is hereby adjusted to exclude section 1 of Township 23 North, Range 19 East, Willamette Meridian.</content> </section> <section> <num value="338"><inline class="smallCaps">Sec</inline>. 338. </num><content class="inline">None of the funds provided in this Act can be used for any activities associated with the Center of Excellence for Sustainable Development unless a budget request has been submitted and approved by the Committees on Appropriations of the House of Representatives and the Senate.</content> </section> <section> <num value="339"><inline class="smallCaps">Sec</inline>. 339. </num><subsection class="inline"><num value="a">(a) </num><content>No funds provided in this or any other Act may be expended to develop a rulemaking proposal to amend or replace the Bureau of Land Management regulations found at 43 CFR 3809 or to prepare a draft environmental impact statement on such proposal, until the Secretary of the Interior certifies to the Committees on Energy and Natural Resources and Appropriations of the Senate and the Committees on Resources and Appropriations of the House of Representatives that the Department of the Interior has consulted with the Governor, or his/her representative, from each State that contains public lands open to location under the General Mining Laws.<page identifier="/us/stat/111/1603">111 STAT. 1603</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><content>The Secretary shall not publish proposed regulations to amend or replace the Bureau of Land Management regulations found at 43 CFR 3809 prior to November 15, 1998, and shall not finalize such regulations prior to 90 days after such publication.</content> </subsection> </section> <section> <num value="340"><inline class="smallCaps">Sec</inline>. 340. </num><subsection class="inline"><num value="a">(a) </num><content>The Secretary of Agriculture is authorized and<sidenote><p class="indent0 firstIndent0 fontsize8">Washington.</p><p class="indent0 fontsize10"><ref href="/us/usc/t16/s544g">16 USC 544g note</ref>.</p></sidenote> directed to negotiate with Skamania County for the exchange of lands or interests in lands constituting the Wind River Nursery Site within the Gifford Pinchot National Forest, Washington.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><content>In return for the Nursery Site properties, Skamania County is authorized and directed to negotiate with the Forest Service the conveyance of approximately 120 acres of high biodiversity, special management lands located near Table Mountain within the Columbia River Gorge National Scenic Area, title to which must be acceptable to the Secretary of Agriculture.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><content>Before this exchange can occur, it must be of equal value and the Secretary and the Skamania County Board of Commissioners must agree on the exact parcels of land to be included in the exchange. An agreement signed by the Secretary of Agriculture and the Skamania County Board of Commissioners describing the properties involved and a certification that the exchange is of equal value must be completed no later than September 30, 1999.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><content>During this two-year negotiating period, the Wind River Nursery property shall not be conveyed to another party. The Forest Service shall maintain the site in a tenantable condition.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><content>Except as provided herein, the exchange shall be for equal value in accordance with land exchange authorities applicable to the National Forest System.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><content>The Secretary is directed to equalize values by not only cash and exchange of lands, easements, reservations, and other interests in lands, but also by full value credit for such services as Skamania County provides to the Gifford Pinchot and Columbia River Gorge National Scenic Area and as the Secretary and Skamania County deem appropriate. The Secretary may accept services in lieu of cash when the Secretary can discern cash value for the services and when the Secretary determines such services would provide direct benefits to lands and resources and users of such lands and resources under the jurisdiction of the Secretary.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num><content>Any cash equalization which Skamania County elects to make may be made up to 50 percent of the fair market value of the Federal property, and such cash equalization may be made in installments over a period not to exceed 25 years. Payments received as partial consideration shall be deposited into the fund in the Treasury established under the Act of December 4, 1967, commonly known as the Sisk Act, and shall be available for expenditure as provided in the Act except that the Secretary may not use those funds to purchase lands within Skamania County.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h) </num><content>In defining the Federal estate to be conveyed, the Secretary may require such additional terms and conditions as deemed necessary in connection with assuring equal value and public interest considerations in this exchange including, but not limited to, continued research use of the Wind River Experimental Forest and protection of natural, cultural, and historic resources, existing administrative sites, and a scenic corridor for the Pacific Crest National Scenic Trail.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="i">(i) </num><content>This authorization is predicated on Skamania County’s Board of Commissioners commitment to give foremost consideration <page identifier="/us/stat/111/1604">111 STAT. 1604</page>to preservation of the overall integrity of the site and conservation of the educational and research potential of the site, including providing for access to and assurance of the continued administration and operation of forestry research on the adjacent Thornton Munger Research Natural Area.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="j">(j) </num><content>The Secretary is further directed to cooperate with Skamania County to address applicable Federal and State environmental laws.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="k">(k) </num><content>Notwithstanding the processes involved with the National Environmental Policy Act and the State Environmental Policy Act, should the Secretary of Agriculture and the Skamania County Board of Commissioners fail to reach an agreement on an equal value exchange defined under the terms of this legislation by September 30, 1999, the Wind River Nursery Site shall remain under Forest Service ownership and be maintained by the Forest Service in a tenantable condition.</content> </subsection> </section> <section> <num value="341"><inline class="smallCaps">Sec</inline>. 341.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s668dd">16 USC 668dd note</ref>.</p></sidenote><content class="inline">The National Wildlife Refuge in Jasper and Marion Counties, Iowa, authorized in Public Law 101–302 shall be referred to in any law, regulation, document or record of the United States in which such project is referred to, as the Neal Smith National Wildlife Refuge.</content> </section> <section> <num value="342"><inline class="smallCaps">Sec</inline>. 342. </num><content class="inline">None of the funds in this or any other Act shall be expended by the Department of the Interior, the Forest Service or any other Federal agency, for the introduction of the grizzly bear population in the Selway-Bitteroot area of Idaho and adjacent Montana, or for consultations under section 7(b)(2) of the Endangered Species Act for Federal actions affecting grizzly bear within the Selway-Bitteroot area of Idaho, except that, funds may be used by the Department of the Interior or the Forest Service, or any other Federal agency for the purposes of receiving public comment on the draft Environmental Impact Statement dated July 1997 and issuing a Record of Decision, and for conducting a habitat-based population viability analysis.</content> </section> <section> <num value="343"><inline class="smallCaps">Sec</inline>. 343.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s497d">16 USC 497d</ref>.</p></sidenote> <content class="inline">The Secretary of Agriculture shall hereafter phase in, over a 3-year period in equal annual installments, that portion of the fee increase for a recreation residence special use permit holder which is more than 100 percent of the previous year’s fee: <proviso><i>Provided,</i> That no recreation residence fee may be increased any sooner than one year from the time the permittee has been notified by the Forest Service of the results of an appraisal which has been conducted for the purpose of establishing such fees:</proviso> <proviso><i>Provided further,</i> That no increases in recreation residence fees on the Sawtooth National Forest will be implemented prior to January 1, 1999.</proviso></content> </section> <section> <num value="344"><inline class="smallCaps">Sec</inline>. 344. </num><chapeau>It is the sense of the Senate that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>preserving Civil War battlefields should be an integral part of preserving our Nation’s history; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Congress should give special priority to the preservation of Civil War battlefields by making funds available for the purchase of threatened and endangered Civil War battlefield sites.</content></paragraph> </section> <section> <num value="345"><inline class="smallCaps">Sec</inline>. 345. </num><content class="inline">It is the sense of the Senate that, inasmuch as there is disagreement as to what extent, if any, Federal funding for the arts is appropriate, and what modifications to the mechanism for such funding may be necessary; and further, inasmuch as there is a role for the private sector to supplement the Federal, State, and local partnership in support of the arts, hearings should be <page identifier="/us/stat/111/1605">111 STAT. 1605</page>conducted and legislation addressing these issues should be brought before the full Senate for debate and passage during this Congress.</content> </section> <section> <num value="346"><inline class="smallCaps">Sec</inline>. 346. </num><subsection class="inline"><num value="a">(a) </num><content>In providing services or awarding financial assistance under the National Foundation on the Arts and the Humanities Act of 1965 from funds appropriated under this Act, the Chairperson of the National Endowment for the Arts shall ensure that priority is given to providing services or awarding financial assistance tor projects, productions, workshops, or programs that serve underserved populations.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><chapeau>In this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The term “underserved population” means a population of individuals who have historically been outside the purview of arts and humanities programs due to factors such as a high incidence of income below the poverty line or to geographic isolation.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The term “poverty line” means the poverty line (as defined by the Office of Management and Budget, and revised annually in accordance with section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2))) applicable to a family of the size involved.</content></paragraph> </subsection> <section> <num value="c">(c) </num><content>In providing services and awarding financial assistance under the National Foundation on the Arts and Humanities Act of 1965 with funds appropriated by this Act, the Chairperson of the National Endowment for the Arts shall ensure that priority is given to providing services or awarding financial assistance for projects, productions, workshops, or programs that will encourage public knowledge, education, understanding, and appreciation of the arts.</content> </section> <section> <num value="d">(d) </num><chapeau>With funds appropriated by this Act to carry out section<sidenote><p class="indent0 firstIndent0 fontsize8">Grants.</p></sidenote> 5 of the National Foundation on the Arts and Humanities Act of 1965—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the Chairperson shall establish a grant category for projects, productions, workshops, or programs that are of national impact or availability or are able to tour several States;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the Chairperson shall not make grants exceeding 15 percent, in the aggregate, of such funds to any single State, excluding grants made under the authority of paragraph (1); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>the Chairperson shall report to the Congress annually<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> and by State, on grants awarded by the Chairperson in each grant category under section 5 of such Act.</content></paragraph> </section> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><content>Section 6(b) of the National Foundation on the Arts and the Humanities Act of 1965 (20 U.S.C. 955(b)) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps"></inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>The Council shall be composed of members as follows:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>The Chairperson of the National Endowment for the Arts, who shall be the chairperson of the Council.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><chapeau>Members of Congress appointed for a 2-year term beginning on January 1 of each odd-numbered year as follows:</chapeau> <clause class="indent2 fontsize10"><num value="i">“(i) </num><content>Two Members of the House of Representatives appointed by the Speaker of the House of Representatives.</content></clause> <clause class="indent2 fontsize10"><num value="ii">“(ii) </num><content>One Member of the House of Representatives appointed by the Minority Leader of the House of Representatives.</content></clause> <clause class="indent2 fontsize10"><num value="iii">“(iii) </num><content>One Senator appointed by the Majority Leader of the Senate.<page identifier="/us/stat/111/1606">111 STAT. 1606</page></content></clause> <clause class="indent2 fontsize10"><num value="iv">“(iv) </num><content>One Senator appointed by the Minority Leader of the Senate.</content></clause> <continuation class="indent0 fontsize10">Members of the Council appointed under this subparagraph shall serve ex officio and shall be nonvoting members of the Council.</continuation> </subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">“(C)</num><sidenote><p class="indent0 firstIndent0 fontsize8">President.</p></sidenote><chapeau>14 members appointed by the President, by and with the advice and consent of the Senate, who shall be selected—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><chapeau>from among private citizens of the United States who—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I) </num><content>are widely recognized for their broad knowledge of, or expertise in, or for their profound interest in the arts; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II) </num><content>have established records of distinguished service, or achieved eminence, in the arts;</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>so as to include practicing artists, civic cultural leaders, members of the museum profession, and others who are professionally engaged in the arts; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><content>so as collectively to provide an appropriate distribution of membership among major art fields and interested citizens groups.</content></clause> <continuation class="indent0 fontsize10">In making such appointments, the President shall give due regard to equitable representation of women, minorities, and individuals with disabilities who are involved in the arts and shall make such appointments so as to represent equitably all geographical areas in the United States.</continuation> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><chapeau>Transition to the new council composition.—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>Notwithstanding subsection (b)(1)(B), members first appointed pursuant to such subsection shall be appointed not later than December 31, 1997. Notwithstanding such subsection, such members shall be appointed to serve until December 31, 1998.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>Members of the Council serving on the effective date of this subsection may continue to serve on the Council until their current terms expire and new members shall not be appointed under subsection (b)(1)(C) until the number of Presidentially appointed members is less than 14.”</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><chapeau>Section 6(c) of the National Foundation on the Arts and the Humanities Act of 1965 (20 U.S.C. 955(c)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>appointed under subsection (b)(1)(C)</quotedText>” after “member” each place it appears; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in the second sentence by inserting “<quotedText>appointed under subsection (b)(1)(C)</quotedText>” after “members”.</content></paragraph> </subsection> </section> <section> <num value="347"><inline class="smallCaps">Sec</inline>. 347. </num><content class="inline">No timber sale in Region 10 shall be advertised which, when using domestic Alaska western red cedar selling values and manufacturing costs, fails to provide at least 60 percent of normal profit and risk of the appraised timber, except at the written request by a prospective bidder. Program accomplishments shall be based on volume sold. Should Region 10 sell, in fiscal year 1998, the annual average portion of the decadal allowable sale quantity called for in the current Tongass Land Management Plan which provides greater than 60 percent of normal profit and risk at the time of the sale advertisement, all of the western red cedar timber from those sales which is surplus to the needs of domestic processors in Alaska, shall be made available to domestic processors in the contiguous 48 States at domestic rates. Should Region 10 sell, in fiscal year 1998, less than the annual average portion of the decadal allowable sale quantity called for in the current <page identifier="/us/stat/111/1607">111 STAT. 1607</page>Tongass Land Management Plan meeting the 60 percent of the normal profit and risk standard at the time of advertisement, the volume of western red cedar available to domestic processors at domestic rates in the contiguous 48 States shall be that volume: (1) which is surplus to the needs of domestic processors in Alaska; and (2) is that percent of the surplus western red cedar volume determined by calculating the ratio of the total timber volume which has been sold on the Tongass to the annual average portion of the decadal allowable sale quantity called for in the current Tongass Land Management Plan. All additional western red cedar volume not sold to Alaska or contiguous 48 States domestic processors may be exported and sold at export rates at the election of the timber sale holder. All Alaska yellow cedar may be sold at export rates at the election of the timber sale holder.</content> </section> <section> <num value="348"><inline class="smallCaps">Sec</inline>. 348. </num><content class="inline">None of the funds in this Act may be used for planning, design or construction of improvements to Pennsylvania Avenue in front of the White House without the advance approval of the House and Senate Committees on Appropriations.</content> </section> <section> <num value="349"><inline class="smallCaps">Sec</inline>. 349. </num><heading><inline class="smallCaps">Implementation of New Guidelines on National Forests in Arizona and New Mexico</inline>.—</heading><subsection class="inline"><num value="a">(a) </num><content>Notwithstanding any other provision of law, none of the funds made available under this or any other Act may be used for the purposes of executing any adjustments to annual operating plans, allotment management plans, or terms and conditions of existing grazing permits on National Forests in Arizona and New Mexico, which are or may be deemed necessary to achieve compliance with 1996 amendments to the applicable forest plans, until March 1, 1998, or such time as the Forest Service publishes a schedule for implementing proposed changes, whichever occurs first.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><content>Nothing in this section shall be interpreted to preclude the expenditure of funds for the development of annual operating plans, allotment management plans, or in developing modifications to grazing permits in cooperation with the permittee.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><content>Nothing in this section shall be interpreted to change authority or preclude the expenditure of funds pursuant to section 504 of the 1995 Rescissions Act (Public Law 104–19).</content> </subsection> </section> <section> <num value="350"><inline class="smallCaps">Sec</inline>. 350. </num><heading><inline class="smallCaps">Payments for Entitlement Land</inline>.—</heading><content>Section 6901(2)(A)(i) of title 31, United States Code, is amended by inserting “<quotedText>(other than in Alaska)</quotedText>” after “city” the first place such term appears.</content> </section> <section> <num value="351"><inline class="smallCaps">Sec</inline>. 351. </num><content>Strike section 103(c)(7) of Public Law 104–333 and<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s460bb">16 USC 460bb note</ref>.</p></sidenote> insert the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="7">“(7) </num><heading><inline class="smallCaps">Staff</inline>.—</heading><content>Notwithstanding any other provisions of law, the Trust is authorized to appoint and fix the compensation and duties and terminate the services of an executive director and such other officers and employees as it deems necessary without regard to the provisions of title 5, United States Code, or other laws related to the appointment, compensation or termination of Federal employees.”.</content></paragraph> </quotedContent> </content></section> <num value="IV">TITLE IV—</num><heading>ENVIRONMENTAL IMPROVEMENT AND RESTORATION FUND</heading> <section> <num value="401"><inline class="smallCaps">Sec</inline>. 401. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Fund</inline>.—</heading><content>One half of the amounts awarded by<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t43/s1474d">43 USC 1474d</ref>.</p></sidenote> the Supreme Court to the United States in the case of United States of America v. State of Alaska (117 S.Ct. 1888) shall be deposited in a fund in the Treasury of the United States to be <page identifier="/us/stat/111/1608">111 STAT. 1608</page>known as the “Environmental Improvement and Restoration Fund” (referred to in this section as the “Fund”).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Investments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary of the Treasury shall invest amounts in the Fund in interest bearing obligations of the United States.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Acquisition of obligations</inline>.—</heading><chapeau>For the purpose of investments under paragraph (1), obligations may be acquired—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>on original issue at the issue price; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by purchase of outstanding obligations at the market price.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Sale of obligations</inline>.—</heading><content>Any obligations acquired by the Fund may be sold by the Secretary of the Treasury at the market price.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><heading><inline class="smallCaps">Credits to fund</inline>.—</heading><content>The interest earned from investments of the Fund shall be covered into and form a part of the Fund.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Transfer and Availability of Amounts Earned</inline>.—</heading><chapeau>Each year, interest earned and covered into the Fund in the previous fiscal year shall be available for appropriation, to the extent provided in the subsequent appropriations Acts, as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>80 percent of such amounts shall be made available to be equally divided among the Directors of the National Park Service, the United States Fish and Wildlife Service, the Bureau of Land Management, and the Chief of the Forest Service for high priority deferred maintenance and modernization of facilities that directly enhance the experience of visitors, including natural, cultural, recreational, and historic resources protection projects in National Parks, National Wildlife Refuges, and the public lands respectively as provided in subsection (d) and for payment to the State of Louisiana and its lessees for oil and gas drainage in the West Delta field. The Secretary shall submit with the annual budget submission to Congress a list of high priority maintenance and modernization projects for congressional consideration.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>20 percent of such amounts shall be made available to the Secretary of Commerce for the purpose of carrying out marine research activities in the North Pacific in accordance with subsection (e).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Projects</inline>.—</heading><content>A project referred to in subsection (c)(1) shall be consistent with the laws governing the National Park System, the National Wildlife Refuge System, the public lands and Forest Service lands and management plan for such unit.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Marine Research Activities</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Funds available under subsection (c)(2) shall be used by the Secretary of Commerce according to this subsection to provide grants to Federal, State, private or foreign organizations or individuals to conduct research activities on or relating to the fisheries or marine ecosystems in the north Pacific Ocean, Bering Sea, and Arctic Ocean (including any lesser related bodies of water).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Establishment.</p></sidenote><content>Research priorities and grant requests shall be reviewed and recommended for Secretarial approval by a board to be known as the North Pacific Research Board (referred to in this subsection as the “Board”). The Board shall seek to avoid duplicating other research activities, and shall place a priority on cooperative research efforts designed to address pressing fishery management or marine ecosystem information needs.<page identifier="/us/stat/111/1609">111 STAT. 1609</page></content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><chapeau>The Board shall be comprised of the following representatives or their designees—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>the Secretary of Commerce, who shall be a co-chair of the Board;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>the Secretary of State;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><content>the Secretary of the Interior;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="D">(D) </num><content>the Commandant of the Coast Guard;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="E">(E) </num><content>the Director of the Office of Naval Research;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="F">(F) </num><content>the Alaska Commissioner of Fish and Game, who shall also be a co-chair of the Board;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="G">(G) </num><content>the Chairman of the North Pacific Fishery Management Council;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="H">(H) </num><content>the Chairman of the Arctic Research Commission;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="I">(I) </num><content>the Director of the Oil Spill Recovery Institute;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="J">(J) </num><content>the Director of the Alaska SeaLife Center;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="K">(K) </num><content>five members nominated by the Governor of Alaska and appointed by the Secretary of Commerce, one of whom shall represent fishing interests, one of whom shall represent Alaska Natives, one of whom shall represent environmental interests, one of whom shall represent academia, and one of whom shall represent oil and gas interests;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="L">(L) </num><content>three members nominated by the Governor of Washington and appointed by the Secretary of Commerce; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="M">(M) </num><content>one member nominated by the Governor of Oregon and appointed by the Secretary of Commerce.</content></subparagraph> <continuation class="indent0 fontsize10">The members of the Board shall be individuals knowledgeable by education, training, or experience regarding fisheries or marine ecosystems in the north Pacific Ocean, Bering Sea, or Arctic Ocean. Three nominations shall be submitted for each member to be appointed under subparagraphs (K), (L), and (M). Board members appointed under subparagraphs (K), (L), and (M) shall serve for three-year terms, and may be reappointed.</continuation> </paragraph> <paragraph class="indent0 fontsize10"><num value="4">(4)</num><subparagraph class="inline"><num value="A">(A) </num><content>The Secretary of Commerce shall review and administer grants recommended by the Board. If the Secretary does not approve a grant recommended by the Board, the Secretary shall explain in writing the reasons for not approving such grant, and the amount recommended to be used for such grant shall be available only for other grants recommended by the Board.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>Grant recommendations and other decisions of the Board shall be by majority vote, with each member having one vote. The Board shall establish written criteria for the submission of<sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote> grant requests through a competitive process and for deciding upon the award of grants. Grants shall be recommended by the Board on the basis of merit in accordance with the priorities established by the Board. The Secretary shall provide the Board such administrative and technical support as is necessary for the effective functioning of the Board. The Board shall be considered an advisory panel established under section 302(g) of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1801 et seq.) for the purposes of section 302(i)(1) of such Act, and the other procedural matters applicable to advisory panels under section 302(i) of such Act shall apply to the Board to the extent practicable. Members of the Board may be reimbursed for actual expenses incurred in performance of their duties for the Board. Not more than 5 percent of the funds provided to the Secretary of Commerce under paragraph (1) may be used to provide support for the Board and administer grants under this subsection.<page identifier="/us/stat/111/1610">111 STAT. 1610</page></content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Sunset</inline>.—</heading><content>If amounts are not assumed by the concurrent budget resolution and appropriated from the Fund by December 15, 1998, the Fund shall terminate and the amounts in the Fund including the accrued interest shall be applied to reduce the Federal deficit.</content> </subsection> </section> <num value="V">TITLE V—</num><heading>PRIORITY LAND ACQUISITIONS, LAND EXCHANGES, AND MAINTENANCE</heading> <section> <content>For priority land acquisitions, land exchange agreements, other activities consistent with the Land and Water Conservation Fund Act of 1965, as amended, and critical maintenance to be conducted by the Bureau of Land Management, the United States Fish and Wildlife Service, the National Park Service and the Forest Service, $699,000,000, to be derived from the Land and Water Conservation Fund notwithstanding any other provision of law, to remain available until September 30, 2001, or which $167,000,000 is available to the Secretary of Agriculture and $532,000,000 is available to the Secretary of the Interior: <proviso><i>Provided,</i> That of the funds made available to the Secretary of Agriculture, not to exceed $65,000,000 may be used to acquire interests to protect and preserve Yellowstone National Park, pursuant to the terms and conditions set forth in sections 502 and 504 of this title, and $12,000,000 may be used for the rehabilitation and maintenance of the Beartooth Highway pursuant to section 502 of this title:</proviso> <proviso><i>Provided further,</i> That of the funds made available to the Secretary of the Interior, not to exceed $250,000,000 may be used to acquire interests to protect and preserve the Headwaters Forest, pursuant to the terms and conditions set forth in sections 501 and 504 of this title, and $10,000,000 may be used for a direct payment to Humboldt County, <sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote>California pursuant to section 501 of this title:</proviso> <proviso><i>Provided further,</i> That the Secretary of the Interior and the Secretary of Agriculture, after consultation with the heads of the Bureau of Land Management, the United States Fish and Wildlife Service, the National Park Service and the Forest Service, shall, in fiscal year 1998 and each of the succeeding three fiscal years, jointly submit to Congress a report listing the lands and interests in land that the Secretaries propose to acquire or exchange and the maintenance requirements they propose to address using funds provided under this heading for purposes other than the purposes of sections 501 and 502 of this title:</proviso> <proviso><i>Provided further,</i> That none of the funds appropriated under this title for purposes other than the purposes or sections 501 and 502 of this title shall be available until the House Committee on Appropriations and the Senate Committee on Appropriations approve, in writing, a list of projects to be undertaken with such funds:</proviso> <proviso><i>Provided further,</i> That moneys provided in this title, when combined with moneys provided by other titles . in this Act, shall, for the purposes of section 205(a) of H. Con. Res. 84 (105th Congress), be considered to provide $700,000,000 in budget authority for fiscal year 1998 for Federal land acquisitions and to finalize priority land exchanges.</proviso></content> </section> <section> <num value="501"><inline class="smallCaps">Sec</inline>. 501.</num><sidenote><p class="indent0 firstIndent0 fontsize8">California.</p><p class="indent0 fontsize10"><ref href="/us/usc/t16/s471j">16 USC 471j</ref>.</p></sidenote><heading><inline class="smallCaps">Headwaters Forest and Elk River Property Acquisition</inline>. </heading><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Authorization</inline>.—</heading><content>Subject to the terms and conditions of this section, up to $250,000,000 from the Land and Water Conservation Fund is authorized to be appropriated to acquire lands referenced in the Agreement of September 28, 1996, which consist of approximately 4,500 acres commonly referred to as the <page identifier="/us/stat/111/1611">111 STAT. 1611</page>“Headwaters Forest”, approximately 1,125 acres referred to as the “Elk Head Forest”, and approximately 9,600 acres referred to as the “Elk River Property”, which are located in Humboldt County, California. This section is the sole authorization for the acquisition of such property, which is the subject of the Agreement dated September 28, 1996 between the United States of America (hereinafter “United States”), the State of California, MAXXAM, Inc., and the Pacific Lumber Company. Of the entire Elk River Property, the United States and the State of California are to retain approximately 1,845 acres and transfer the remaining approximately 7,755 acres of Elk River Property to the Pacific Lumber Company. The property to be acquired and retained by the United States and the State of California is that property that is the subject of the Agreement of September 28, 1996 as generally depicted on maps labeled as sheets 1 through 7 of Township 3 and 4 North, Ranges 1 East and 1 West, of the Humboldt Meridian, California, titled “Dependent Resurvey and Tract Survey”, as approved by Lance J. Bishop, Chief Cadastral Surveyor—California, on August 29, 1997. Such maps shall be on file in the Office of the Chief Cadastral Surveyor, Bureau of Land Management, Sacramento, California. The Secretary of the Interior is authorized to make such typographical and other corrections to this description as are mutually agreed upon by the parties to the Agreement of September 28, 1996. The land retained by the United States and the State of California (approximately 7,470 acres) shall hereafter be the “Headwaters Forest”. Any funds appropriated by the Federal Government to acquire lands or interests in lands that enlarge the Headwaters Forest by more than five acres per each acquisition shall be subject to specific authorization enacted subsequent to this Act, except that such funds may be used pursuant to existing authorities to acquire such lands up to five acres per each acquisition or interests in lands that may be necessary for roadways to provide access to the Headwaters Forest.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Effective Period of Authorization</inline>.—</heading><chapeau>The authorization in subsection (a) expires March 1, 1999 and shall become effective only—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>when the State of California provides a $130,000,000 contribution for the transaction;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>when the State of California approves a Sustained Yield Plan covering Pacific Lumber Company timber property;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>when the Pacific Lumber Company dismisses the following legal actions as evidenced by instruments in form and substance satisfactory to each of the parties to such legal actions: Pacific Lumber Co. v. United States, No. 96–257L (Fed. Cis.) and Salmon Creek Corp. v. California Board of Forestry, No. 96–CS–1057 (Cal. Super. Ct.);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>when the incidental take permit under section 10(a) of the Endangered Species Act (based upon a multispecies Habitat Conservation Plan covering Pacific Lumber Company timber property, including applicable portions of the Elk River Property) is issued by the United States Fish and Wildlife Service and the National Marine Fisheries Service;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>after an appraisal of all lands and interests therein to be acquired by the United States has been undertaken, such appraisal has been reviewed for a period not to exceed 30 days by the Comptroller General of the United States, and such appraisal has been provided to the Committee on <page identifier="/us/stat/111/1612">111 STAT. 1612</page>Resources of the House of Representatives, the Committee on Energy and Natural Resources of the Senate, and the Committees on Appropriations of the House and Senate;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>after the Secretary of the Interior issues an opinion of value to the Committee on Resources of the House of Representatives, the Committee on Energy and Natural Resources of the Senate, and the Committees on Appropriations of the House and Senate for the land and property to be acquired by the Federal Government. Such opinion of value shall also include the total value of all compensation (including tax benefits) proposed to be provided for the acquisition;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>after an Environmental Impact Statement for the proposed Habitat Conservation Plan has been prepared and completed in accordance with the applicable provisions of the National Environmental Policy Act of 1969; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>when adequate provision has been made for public access to the property.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Acquisition</inline>.—</heading><content>Notwithstanding any other provision of law, the amount paid by the United States to acquire identified lands and interests in lands referred to in section 501(a) may differ from the value contained in the appraisal required by section 501(b)(5) if the Secretary of the Interior certifies, in writing, to Congress that such action is in the best interest of the United States.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote><heading><inline class="smallCaps">Habitat Conservation Plan</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Applicable standards</inline>.—</heading><content>Within 60 days after the enactment of this section, the Secretary of the Interior and the Secretary of Commerce shall report to the Committee on Energy and Natural Resources of the Senate and the Committee on Resources of the House of Representatives on the scientific and legal standards and criteria for threatened, endangered, and candidate species under the Endangered Species Act and any other species used to develop the habitat conservation plan (hereinafter “HCP”) and the section 10(a) incidental take permit for the Pacific Lumber Company land.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Report</inline>.—</heading><content>If the Pacific Lumber Company submits an application for an incidental take permit under section 10(a) of the Endangered Species Act for the transaction authorized by subsection (a), and the permit is not issued, then the United States Fish and Wildlife Service and the National Marine Fisheries Service shall set forth the substantive rationale or rationales for why the measures proposed by the applicant for such permit did not meet the issuance criteria for the species at issue. Such report shall be submitted to the Congress within 60 days of the decision not to issue such permit or by May 1, 1999, whichever is earlier.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">HCP standards</inline>.—</heading><content>If a section 10(a) permit for the Pacific Lumber Company HCP is issued, it shall be deemed to be unique to the circumstances associated with the acquisition authorized by this section and shall not establish a higher or lesser standard for any other multispecies HCPs than would otherwise be established under existing law.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Payment to Humboldt County</inline>.—</heading><content>Within 30 days of the acquisition of the Headwaters Forest, the Secretary of the Interior shall provide a $10,000,000 direct payment to Humboldt County, California.<page identifier="/us/stat/111/1613">111 STAT. 1613</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Payment In Lieu Of Taxes</inline>.—</heading><content>The Federal portion of the Headwaters Forest acquired pursuant to this section shall be entitlement land under section 6905 of title 31 of the United States Code.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num><heading><inline class="smallCaps">Out-Year Budget Limitations</inline>.—</heading><chapeau>The following funding limitations and parameters shall apply to the Headwaters Forest acquired under subsection (a)—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>At least 50 percent of the total funds for management of such lands above the annual level of $100,000 shall (with the exception of law enforcement activities and emergency activities) be from non-Federal sources.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Subject to appropriations, the authorized annual Federal funding for management of such land is $300,000 (with the exception of law enforcement activities and emergency activities).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The Secretary of the Interior or the Headwaters Forest Management Trust referenced in subsection (h) is authorized to accept and use donations of funds and personal property from the State of California, private individuals, and other nongovernmental entities for the purpose of management of the Headwaters Forest.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h) </num><heading><inline class="smallCaps">Headwaters Forest Management Trust</inline>.—</heading><chapeau>The Secretary of the Interior is authorized, with the written concurrence of the Governor of the State of California, to establish a Headwaters Forest Management Trust (“Trust”) for the management of the Headwaters Forest as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Management authority</inline>.—</heading><content>The Secretary of the Interior is authorized to vest management authority and responsibility in the Trust composed of a board of five trustees each appointed for terms of three years. Two trustees shall be appointed by the Governor of the State of California. Three<sidenote><p class="indent0 firstIndent0 fontsize8">President.</p></sidenote> President, trustees shall be appointed by the President of the United States. The first group of trustees shall be appointed within 60 days of exercising the authority under this subsection and the terms of the trustees shall begin on such day. The Secretary of the Interior, the Secretary of Resources of the State of California, and the Chairman of the Humboldt County Board of Supervisors shall be nonvoting, ex officio members of the board of trustees. The Secretary is authorized to make grants to the Trust for the management of the Headwaters Forest from amounts authorized and appropriated.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Operations</inline>.—</heading><content>The Trust shall have the power to develop and implement the management plan for the Headwaters Forest.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="i">(i) </num><heading><inline class="smallCaps">Management Plan</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>A concise management plan for the Headwaters Forest shall be developed and periodically amended as necessary by the Secretary of the Interior in consultation with the State of California (and in the case that the authority provided in subsection (h) is exercised, the trustees shall develop and periodically amend the management plan), and shall meet the following requirements:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>Management goals for the plan shall be to conserve and study the land, fish, wildlife, and forests occurring on such land while providing public recreation opportunities and other management needs.<page identifier="/us/stat/111/1614">111 STAT. 1614</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>Before a management structure and management plan are adopted for such land, the Secretary of the Interior or the board of trustees, as the case may be, shall submit a proposal for the structure and plan to the Committee on Energy and Natural Resources of the Senate and the Committee on Resources of the House of Representatives. The proposed management plan shall not become effective until the passage of 90 days after its submission to the Committees.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> <content>The Secretary of the Interior or the board of trustees, as the case may be, shall report annually to the Committee on Energy and Natural Resources of the Senate, the Committee on Resources of the House of Representatives, and the House and Senate Committees on Appropriations concerning the management of lands acquired under the authority of this section and activities undertaken on such lands.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Plan</inline>.—</heading><chapeau>The management plan shall guide general management of the Headwaters Forest. Such plan shall address the following management issues—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>scientific research on forests, fish, wildlife, and other such activities that will be fostered and permitted on the Headwaters Forest;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>providing recreation opportunities on the Headwaters Forest;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>access to the Headwaters Forest;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>construction of minimal necessary facilities within the Headwaters Forest so as to maintain the ecological integrity of the Headwaters Forest;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E) </num><content>other management needs; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F) </num><content>an annual budget for the management of the Headwaters Forest, which shall include a projected revenue schedule (such as fees for research and recreation) and projected expenses.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Compliance</inline>.—</heading><content>The National Environmental Policy Act shall apply to the development and implementation of the management plan.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="j">(j) </num><heading><inline class="smallCaps">Cooperative Management</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The Secretary of the Interior may enter into agreements with the State of California for the cooperative management of any of the following: Headwaters Forest, Redwood National Park, and proximate State lands. The purpose of such agreements is to acquire from and provide to the State of California goods and services to be used by the Secretary and the State of California in cooperative management of lands if the Secretary determines that appropriations for that purpose are available and an agreement is in the best interests of the United States; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>an assignment arranged by the Secretary under section 3372 of title 5, United States Code, of a Federal or State employee for work in any Federal or State of California lands, or an extension of such assignment, may be for any period of time determined by the Secretary or the State of California, as appropriate, to be mutually beneficial.</content></paragraph> </subsection> </section> <section> <num value="502"><inline class="smallCaps">Sec</inline>. 502. </num><heading><inline class="smallCaps">Protection and Preservation of Yellowstone National Park-Acquisition of Crown Butte Mining Interests</inline>. </heading><subsection class="inline"><num value="a">(a) </num><content>Authorization.—Subject to the terms and conditions of this <page identifier="/us/stat/111/1615">111 STAT. 1615</page>section, up to $65,000,000 from the Land and Water Conservation Fund is authorized to be appropriated to acquire identified lands and interests in lands referred to in the Agreement of August 12, 1996 to protect and preserve Yellowstone National Park.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Conditions of Acquisition Authority</inline>.—</heading><chapeau>The Secretary of Agriculture may not acquire the District Property until:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the parties to the Agreement have entered into and lodged with the United States District Court for the District of Montana a consent decree as required under the Agreement that requires, among other things, Crown Butte to perform response or restoration actions (or both) or pay for such actions in accordance with the Agreement;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>an appraisal of the District Property has been undertaken, such appraisal has been reviewed for a period not to exceed 30 days by the Comptroller General of the United States, and such appraisal has been provided to the Committee on Resources of the House of Representatives, the Committee on Energy and Natural Resources of the Senate, and the House and Senate Committees on Appropriations;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>after the Secretary of Agriculture issues an opinion of value to the Committee on Resources of the House of Representatives, the Committee on Energy and Natural Resources of the Senate, and the House and Senate Committees on Appropriations for the land and property to be acquired by the Federal Government; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>the applicable requirements of the National Environmental Policy Act have been met.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Acquisition</inline>.—</heading><content>Notwithstanding any other provision of law, the amount paid by the United States to acquire identified lands and interests in lands referred to in the Agreement of August 12, 1996 to protect and preserve Yellowstone National Park may exceed the value contained in the appraisal required by section 502(b)(2) if the Secretary of Agriculture certifies, in writing, to Congress that such action is in the best interest of the United States.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Deposit in Account</inline>.—</heading><chapeau>Immediately upon receipt of payments from the United States, Crown Butte shall deposit $22,500,000 in an interest bearing account in a private, federally chartered financial institution that, in accordance with the Agreement, shall be—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>acceptable to the Secretary of Agriculture; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>available to carry out response and restoration actions.</content></paragraph> <continuation class="indent0 fontsize10">The balance of amounts remaining in such account after completion of response and restoration actions shall be available to the Secretary of Agriculture for use in the New World Mining District for any environmentally beneficial purpose otherwise authorized by law.</continuation> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Maintenance and Rehabilitation of Beartooth Highway</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Maintenance</inline>.—</heading><chapeau>The Secretary of Agriculture shall, consistent with the funds provided herein, be responsible for—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>snow removal on the Beartooth Highway from milepost 0 in Yellowstone National Park, into and through Wyoming, to milepost 43.1 on the border between Wyoming and Montana; and<page identifier="/us/stat/111/1616">111 STAT. 1616</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>pavement preservation, in conformance with a pavement preservation plan, on the Beartooth Highway from milepost 8.4 to milepost 24.5.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Rehabilitation</inline>.—</heading><content>The Secretary of Agriculture shall be responsible for conducting rehabilitation and minor widening of the portion of the Beartooth Highway in Wyoming that runs from milepost 24.5 to milepost 43.1.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Authorization of appropriations</inline>.—</heading><chapeau>There is authorized to be appropriated to the Secretary of Agriculture—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>for snow removal and pavement preservation under paragraph (1), $2,000,000; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>for rehabilitation under paragraph (2), $10,000,000.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><heading><inline class="smallCaps">Availability of funds</inline>.—</heading><content>Within 30 days of the acquisition of lands and interests in lands pursuant to this section, the funds authorized in subsection (e)(3) and appropriated herein for that purpose shall be made available to the Secretary of Agriculture.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Response and Restoration Plan</inline>.—</heading><content>The Administrator of the Environmental Protection Agency and the Secretary of Agriculture shall approve or prepare a plan for response and restoration activities to be undertaken pursuant to the Agreement and a quarterly accounting of expenditures made pursuant to such plan. The plan and accountings shall be transmitted to the Committee on Resources of the House of Representatives, the Senate Committee on Energy and Natural Resources and the House and Senate Committees on Appropriations.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num><heading><inline class="smallCaps">Map</inline>.—</heading><content>The Secretary of Agriculture shall provide to the Committee on Resources of the House of Representatives, the Senate Committee on Energy and Natural Resources and the House and Senate Committees on Appropriations, a map depicting the acreage to be acquired pursuant to this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>In this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Agreement</inline>.—</heading><content>The term “Agreement” means the agreement in principle, concerning the District Property, entered into on August 12, 1996 by Crown Butte Mines, Inc., Crown Butte Resources Ltd., Greater Yellowstone Coalition, Northwest Wyoming Resource Council, Sierra Club, Gallatin Wildlife Association, Wyoming Wildlife Federation, Montana Wildlife Federation, Wyoming Outdoor Council, Beartooth Alliance, and the United States of America, with such other changes mutually agreed to by the parties.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Beartooth highway</inline>.—</heading><content>The term “Beartooth Highway” means the portion of United States Route 212 that runs from the northeast entrance of Yellowstone National Park near Silver Gate, Montana, into and through Wyoming to Red Lodge, Montana.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Crown butte</inline>.—</heading><content>The term “Crown Butte” means Crown Butte Mines, Inc. and Crown Butte Resources Ltd., acting jointly.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><heading><inline class="smallCaps">District property</inline>.—</heading><content>The term “District Property” means the portion of the real property interests specifically described as District Property in appendix B of the Agreement.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><heading><inline class="smallCaps">New world mining district</inline>.—</heading><content>The term “New World Mining District” means the New World Mining District as specifically described in appendix A of the Agreement.</content></paragraph> </subsection> </section> <section> <num value="503"><inline class="smallCaps">Sec</inline>. 503. </num><heading><inline class="smallCaps">Conveyance to State of Montana</inline>. </heading><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Conveyance Requirement</inline>.—</heading><chapeau>Not later than January 1, 2001, but not prior to <page identifier="/us/stat/111/1617">111 STAT. 1617</page>180 days after the enactment of this Act, the Secretary of the Interior shall convey to the State of Montana, without consideration, all right, title, and interest of the United States in and to—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>$10,000,000 in Federal mineral rights in the State of Montana agreed to by the Secretary of the Interior and the Governor of Montana through negotiations in accordance with subsection (b); or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>all Federal mineral rights in the tracts in Montana depicted as Otter Creek number 1, 2, and 3 on the map entitled “Ashland Map”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Negotiations</inline>.—</heading><content>The Secretary of the Interior shall promptly enter into negotiations with the Governor of Montana for purposes of subsection (a)(1) to determine and agree to mineral rights owned by the United States having a fair market value of $10,000,000.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Federal Law Not Applicable to Conveyance</inline>.—</heading><content>Any conveyance under subsection (a) shall not be subject to the Mineral Leasing Act (30 U.S.C. 181 et seq.).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Availability of Map</inline>.—</heading><content>The Secretary of the Interior shall keep the map referred to in subsection (a)(2) on file and available for public inspection in appropriate offices of the Department of the Interior located in the District of Columbia and Billings, Montana, until January 1, 2001.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Conveyance Dependent Upon Acquisition</inline>.—</heading><content>No conveyance pursuant to subsection (a) shall take place unless the acquisition authorized in section 502(a) is executed.</content> </subsection> </section> <section> <num value="504"><inline class="smallCaps">Sec</inline>. 504. </num><content class="inline">The acquisitions authorized by sections 501 and 502<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s471j">16 USC 471j note</ref>.</p></sidenote> of this title may not occur prior to the earlier of: (1) 180 days after enactment of this Act; or (2) enactment of separate authorizing legislation that modifies section 501, 502, or 503 of this title. Within<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> 120 days of enactment, the Secretary of the Interior and the Secretary of Agriculture, respectively, shall submit to the Committee on Resources of the House of Representatives, the Senate Committee on Energy and Natural Resources and the House and Senate Committees on Appropriations, reports detailing the status of efforts to meet the conditions set forth in this title imposed on the acquisition of the interests to protect and preserve the Headwaters Forest and the acquisition of interests to protect and preserve Yellowstone National Park. For every day beyond 120 days after the enactment of this Act that the appraisals required in subsections 501(b)(5) and 502(b)(2) are not provided to the Committee on Resources of the House, the Committee on Energy and Natural Resources of the Senate and the House and Senate Committees on Appropriations in accordance with such subsections, the 180-day period referenced in this section shall be extended by one day.</content> </section> <section> <num value="505"><inline class="smallCaps">Sec</inline>. 505. </num><content class="inline">The Land and Water Conservation Fund Act of 1965 (Public Law 88–578; 78 Stat. 897) (16 U.S.C. 4601–1 through 11) is amended by moving section 13 (as added by section 1021(b) of the Omnibus Parks and Public Lands Management Act of 1996; 110 Stat. 4210) so as to appear in title I of that Act following<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s460l–10e">16 USC 460<i>l</i>–10e</ref>.</p></sidenote> section 12.</content> </section> <num value="VI">TITLE VI—</num><heading>FOREST RESOURCES CONSERVATION AND SHORTAGE RELIEF</heading><sidenote><p class="indent0 firstIndent0 fontsize8">Forest Resources Conservation and Shortage Relief Act of 1997.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s620">16 USC 620 note</ref>.</p></sidenote> <section> <num value="601"><inline class="smallCaps">Sec</inline>. 601. </num><heading><inline class="smallCaps">Short Title</inline>.—</heading><content class="inline">This title may be cited as the “Forest Resources Conservation and Shortage Relief Act of 1997”.<page identifier="/us/stat/111/1618">111 STAT. 1618</page></content> </section> <section> <num value="602"><inline class="smallCaps">Sec</inline>. 602. </num><subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Use of Unprocessed Timber-Limitation on Substitution of Unprocessed Federal Timber for Unprocessed Timber From Private Land</inline>.—</heading><chapeau>Section 490 of the Forest Resources Conservation and Shortage Relief Act of 1990 (16 U.S.C. 620b) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>in subsection (a)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>in paragraph (1), by inserting “<quotedText>paragraph (3) and</quotedText>” after “provided in”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><heading><inline class="smallCaps">Applicability</inline>.—</heading><chapeau>In the case of the purchase by a person of unprocessed timber originating from Federal lands west of the 119th meridian in the State of Washington, paragraph (1) shall apply only if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>the private lands referred to in paragraph (1) are owned by the person; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>the person has the exclusive right to harvest timber from the private lands described in paragraph (1) during a period of more than 7 years, and may exercise that right at any time of the person’s choosing.”;</content></subparagraph> </paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>in subsection (c)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>in the subsection heading, by striking “<quotedText><inline class="smallCaps">Approval of</inline></quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><chapeau>in paragraph (2)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>in the paragraph heading, by inserting “<quotedText><inline class="smallCaps">for sourcing areas for processing facilities located outside the northwestern private timber open market area</inline></quotedText>”; after “Application”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>in subparagraph (A), by inserting “<quotedText>(except private land located in the northwestern private timber open market area)</quotedText>” after “lands”;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><chapeau>in paragraph (3)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>in the paragraph heading, by inserting “<quotedText><inline class="smallCaps">for sourcing areas for processing facilities located outside of the northwestern private timber open market area</inline>.—(A) <inline class="smallCaps">In general</inline></quotedText>”; after “<inline class="smallCaps">approval</inline>”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>by striking the last sentence of paragraph (3) and adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><heading><inline class="smallCaps">For timber manufacturing facilities located in idaho</inline>.—</heading><content>Except as provided in subparagraph (D), in making a determination referred to in subparagraph (A), the Secretary concerned shall consider the private timber export and the private and Federal timber sourcing patterns for the applicant’s timber manufacturing facilities, as well as the private and Federal timber sourcing patterns for the timber manufacturing facilities of other persons in the same local vicinity of the applicant, and the relative similarity of such private and Federal timber sourcing patterns.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><heading><inline class="smallCaps">For timber manufacturing facilities located in states other than idaho</inline>.—</heading><content>Except as provided in subparagraph (D), in making the determination referred to in subparagraph (A), the Secretary concerned shall consider the private timber export and the Federal timber sourcing patterns for the applicant’s timber manufacturing facilities, as well as the Federal timber sourcing patterns for the timber manufacturing facilities of other persons in the same local vicinity of the applicant, and the relative <page identifier="/us/stat/111/1619">111 STAT. 1619</page>similarity of such Federal timber sourcing patterns. Private timber sourcing patterns shall not be a factor in such determinations in States other than Idaho.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><heading><inline class="smallCaps">Area not included</inline>.—</heading><chapeau>In deciding whether to approve or disapprove an application, the Secretary shall not—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>consider land located in the northwestern private timber open market area; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>condition approval of the application on the inclusion of any such land in the applicant’s sourcing area, such land being includable in the sourcing area only to the extent requested by the applicant.”;</content></clause> </subparagraph> </quotedContent> </content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>in paragraph (4), in the paragraph heading, by inserting “<quotedText><inline class="smallCaps">for sourcing areas for processing facilities located outside the northwestern private timber open market area</inline></quotedText>”; after “<inline class="smallCaps">application</inline>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E) </num><content>in paragraph (5), in the paragraph heading, by inserting “<quotedText><inline class="smallCaps">for sourcing areas for processing facilities located outside the northwestern private timber open market area</inline></quotedText>”; after “<inline class="smallCaps">determinations</inline>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F) </num><content>by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="6">“(6) </num><heading><inline class="smallCaps">Sourcing areas for processing facilities located in the northwestern private timber open market area</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><heading><inline class="smallCaps">Establishment</inline>.—</heading><chapeau>In the northwestern private timber open market area—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>a sourcing area boundary shall be a circle around the processing facility of the sourcing area applicant or holder;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><chapeau>the radius of the circle—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I) </num><content>shall be the furthest distance that the sourcing area applicant or holder proposes to haul Federal timber for processing at the processing facility; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II) </num><content>shall be determined solely by the sourcing area applicant or holder;</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><content>a sourcing area shall become effective on written<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8">Notice.</p></sidenote> notice to the Regional Forester for Region 6 of the Forest Service of the location of the boundary of the sourcing area;</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv) </num><content>the 24-month requirement in paragraph (1)(A) shall not apply;</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v) </num><chapeau>a sourcing area holder—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I) </num><content>may adjust the radius of the sourcing area not more frequently than once every 24 months; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II) </num><content>shall provide written notice to the<sidenote><p class="indent0 firstIndent0 fontsize8">Notice.</p></sidenote> Regional Forester for Region 6 of the adjusted boundary of its sourcing area before using the adjusted sourcing area; and</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="vi">“(vi) </num><content>a sourcing area holder that relinquishes a sourcing area may not reestablish a sourcing area for that processing facility before the date that is 24 months after the date on which the sourcing area was relinquished.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><heading><inline class="smallCaps">Transition</inline>.—</heading><chapeau>With respect to a portion of a sourcing area established before the date of enactment <page identifier="/us/stat/111/1620">111 STAT. 1620</page>of this paragraph that contains Federal timber under contract before that date and is outside the boundary of a new sourcing area established under subparagraph (A)—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>that portion shall continue to be a sourcing area only until unprocessed Federal timber from the portion is no longer in the possession of the sourcing area holder; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>unprocessed timber from private land in that portion shall be exportable immediately after unprocessed timber from Federal land in the portion is no longer in the possession of the sourcing area holder.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7) </num><heading><inline class="smallCaps">Relinquishment and termination of sourcing areas</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>A sourcing area may be relinquished at any time.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Notice</p></sidenote><heading><inline class="smallCaps">Effective date</inline>.—</heading><content>A relinquishment of a sourcing area shall be effective as of the date on which written notice is provided by the sourcing area holder to the Regional Forester with jurisdiction over the sourcing area where the processing facility of the holder is located.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><heading><inline class="smallCaps">Exportability</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>On relinquishment or termination of a sourcing area, unprocessed timber from private land within the former boundary of the relinquished or terminated sourcing area is exportable immediately after unprocessed timber from Federal land from within that area is no longer in the possession of the former sourcing area holder.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><heading><inline class="smallCaps">No restriction</inline>.—</heading><content>The exportability of unprocessed timber from private land located outside of a sourcing area shall not be restricted or in any way affected by relinquishment or termination of a sourcing area.”; and</content></clause> </subparagraph> </paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Domestic Transportation and Processing of Private Timber</inline>.—</heading><content>Nothing in this section restricts or authorizes any restriction on the domestic transportation or processing of timber harvested from private land, except that the Secretary may prohibit processing facilities located in the State of Idaho that have sourcing areas from processing timber harvested from private land outside of the boundaries of those sourcing areas.”.</content> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Restriction of Exports of Unprocessed Timber From State and Public Land</inline>.—</heading><chapeau>Section 491(b)(2) of the Forest Resources Conservation and Shortage Relief Act of 1990 (16 U.S.C. 620c(b)(2)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking “<quotedText>the following</quotedText>” and all that follows through “(A) The Secretary” and inserting “<quotedText>the Secretary</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking “<quotedText>during the period beginning on June 1, 1993, and ending on December 31, 1995</quotedText>” and inserting “<quotedText>as of the date of enactment of the Forest Resources Conservation and Shortage Relief Act of 1997</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by striking subparagraph (B).</content></paragraph> </subsection> </section> <section> <num value="603"><inline class="smallCaps">Sec</inline>. 603. </num><heading><inline class="smallCaps">Monitoring and Enforcement</inline>.—</heading><chapeau class="inline">Section 492 of the Forest Resources Conservation and Shortage Relief Act of 1990 (16 U.S.C. 620d) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subsection (c)(2), by adding at the end the following:<page identifier="/us/stat/111/1621">111 STAT. 1621</page> <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><heading><inline class="smallCaps">Mitigation of penalties</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The Secretary concerned—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I) </num><content>in determining the applicability of any penalty imposed under this paragraph, shall take into account all relevant mitigating factors, including mistake, inadvertence, and error; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II) </num><chapeau>based on any mitigating factor, may, with respect to any penalty imposed under this paragraph—</chapeau> <item class="indent5 fontsize10"><num value="aa">“(aa) </num><content>reduce the penalty;</content></item> <item class="indent5 fontsize10"><num value="bb">“(bb) </num><content>not impose the penalty; or</content></item> <item class="indent5 fontsize10"><num value="cc">“(cc) </num><content>on condition of there being no further violation under this paragraph for a prescribed period, suspend imposition of the penalty.</content></item> </subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><heading><inline class="smallCaps">Contractural remedies</inline>.—</heading><content>In the case of a minor violation of this title (including a regulation), the Secretary concerned shall, to the maximum extent practicable, permit a contracting officer to redress the violation in accordance with the applicable timber sale contract rather than assess a penalty under this paragraph.”; and</content></clause> </subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>in subsection (d)(1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking “<quotedText>The head</quotedText>” and inserting the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>Subject to subparagraph (B), the head”; and</content></subparagraph> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><heading><inline class="smallCaps">Prerequisites for debarment</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>No person may be debarred from bidding for or entering into a contract for the purchase of unprocessed timber from Federal lands under subparagraph (A) unless the head of the appropriate Federal department or agency first finds, on the record and after an opportunity for a hearing, that debarment is warranted.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><heading><inline class="smallCaps">Withholding of awards during debarment proceedings</inline>.—</heading><content>The head of an appropriate Federal department or agency may withhold an award under this title of a contract for the purchase of unprocessed timber from Federal lands during a debarment proceeding.”.</content></clause> </subparagraph> </quotedContent> </content></subparagraph> </paragraph> </section> <section> <num value="604"><inline class="smallCaps">Sec</inline>. 604. </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>Section 493 of the Forest Resources Conservation and Shortage Relief Act of 1990 (16 U.S.C. 620e) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by redesignating paragraphs (3) through (8) as paragraphs (5) through (10), respectively;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting after paragraph (2) the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><heading><inline class="smallCaps">Minor violation</inline>.—</heading><content>The term ‘minor violation’ means a violation, other than an intentional violation, involving a single contract, purchase order, processing facility, or log yard involving a quantity of logs that is less than 25 logs and has a total value (at the time of the violation) of less than $10,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><heading><inline class="smallCaps">Northwestern private timber open market area</inline>.—</heading><content>The term ‘northwestern private timber open market area’ means the State of Washington.”;</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><chapeau>in subparagraph (B)(ix) of paragraph (9) (as redesignated by paragraph (1))—<page identifier="/us/stat/111/1622">111 STAT. 1622</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking “<quotedText>Pulp logs or cull logs</quotedText>” and inserting “<quotedText>Pulp logs, cull logs, and incidental volumes of grade 3 and 4 sawlogs</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by inserting “<quotedText>primary</quotedText>” before “purpose”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>by striking the period at the end and inserting: “, or to the extent that a small quantity of such logs are processed, into other products at domestic processing facilities.”; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="11">“(11) </num><heading><inline class="smallCaps">Violation</inline>.—</heading><chapeau>The term ‘violation’ means a violation of this Act (including a regulation issued to implement this Act) with regard to a course of action, including—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>in the case of a violation by the original purchaser of unprocessed timber, an act or omission with respect to a single timber sale; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>in the case of a violation of a subsequent purchaser of the timber, an act or omission with respect to an operation at a particular processing facility or log yard.”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> </section> <section> <num value="605"><inline class="smallCaps">Sec</inline>. 605. </num><heading><inline class="smallCaps">Regulations</inline>.—</heading><chapeau>Section 495(a) of the Forest Resources Conservation and Shortage Relief Act of 1990 (16 U.S.C. 620f(a)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking “<quotedText>The Secretaries</quotedText>” and inserting the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">Agriculture and interior</inline>.—</heading><content>The Secretaries”;</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking “<quotedText>The Secretary of Commerce</quotedText>” and inserting the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">Commerce</inline>.—</heading><content>The Secretary of Commerce”; and</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by striking the last sentence and inserting the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote><heading><inline class="smallCaps">Deadline</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as otherwise provided in this title, regulations and guidelines required under this subsection shall be issued not later than June 1, 1998.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>The regulations and guidelines issued under this title that were in effect prior to September 8, 1995 shall remain in effect until new regulations and guidelines are issued under subparagraph (A).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote><heading><inline class="smallCaps">Painting and branding</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The Secretary concerned shall issue regulations that impose reasonable painting, branding, or other forms of marking or tracking requirements on unprocessed timber if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>the benefits of the requirements outweigh the cost of complying with the requirements; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><chapeau>the Secretary determines that, without the requirements, it is likely that the unprocessed timber—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I) </num><content>would be exported in violation of this title; or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II) </num><content>if the unprocessed timber originated from Federal lands, would be substituted for unprocessed timber originating from private lands west of the 100th Meridian in the contiguous 48 States in violation of this title.</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><heading><inline class="smallCaps">Minimum size</inline>.—</heading><chapeau>The Secretary concerned shall not impose painting, branding, or other forms of marking or tracking requirements on—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>the face of a log that is less than 7 inches in diameter; or<page identifier="/us/stat/111/1623">111 STAT. 1623</page></content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>unprocessed timber that is less than 8 feet in length or less than ⅓ sound wood.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><heading><inline class="smallCaps">Waivers</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The Secretary concerned may waive log painting and branding requirements—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I) </num><content>for a geographic area, if the Secretary determines that the risk of the unprocessed timber being exported from the area or used in substitution is low;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II) </num><content>with respect to unprocessed timber originating from private lands located within an approved sourcing area for a person who certifies that the timber will be processed at a specific domestic processing facility to the extent that the processing does occur; or</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III) </num><content>as part of a log yard agreement that is consistent with the purposes of the export and substitution restrictions imposed under this title,</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><heading><inline class="smallCaps">Review and termination of waivers</inline>.—</heading><chapeau>A waiver granted under clause (i)—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I) </num><content>shall, to the maximum extent practicable, be reviewed once a year; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II) </num><content>shall remain effective until terminated by the Secretary.</content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><heading><inline class="smallCaps">Factors</inline>.—</heading><chapeau>In making a determination under this paragraph, the Secretary concerned shall consider—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>the risk of unprocessed timber of that species, grade, and size being exported or used in substitution;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>the location of the unprocessed timber and the effect of the location on its being exported or used in substitution;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><content>the history of the person involved with respect to compliance with log painting and branding requirements; and</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv) </num><content>any other factor that is relevant to determining the likelihood of the unprocessed timber being exported or used in substitution.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><heading><inline class="smallCaps">Reporting</inline>,—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>Subject to subparagraph (B), the<sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote> Secretary concerned shall issue regulations that impose reasonable documentation and reporting requirements if the benefits of the requirements outweigh the cost of complying with the requirements.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><heading><inline class="smallCaps">Waivers</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The Secretary concerned may waive documentation and reporting requirements for a person if—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I) </num><content>an audit of the records of the facility of the person reveals substantial compliance with all notice, reporting, painting, and branding requirements during the preceding year; or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II) </num><content>the person transferring the unprocessed timber and the person processing the unprocessed timber enter into an advance agreement with the Secretary concerned regarding the disposition of the unprocessed timber by domestic processing.<page identifier="/us/stat/111/1624">111 STAT. 1624</page></content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><heading><inline class="smallCaps">Review and termination of waivers</inline>.—</heading><chapeau>A waiver granted under clause (i)—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I) </num><content>shall, to the maximum extent practicable, be reviewed once a year; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II) </num><content>shall remain effective until terminated by the Secretary.”.</content></subclause> </clause> </subparagraph> </paragraph> </quotedContent> </content></paragraph> </section> <num value="VII">TITLE VII—</num><sidenote><p class="indent0 firstIndent0 fontsize8">Miccosukee Settlement Act of 1997.</p><p class="indent0 firstIndent0 fontsize8">Native Americans.</p><p class="indent0 firstIndent0 fontsize8">Florida.</p><p class="indent0 fontsize10"><ref href="/us/usc/t25/s1750">25 USC 1750 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t25/s1750">25 USC 1750</ref>.</p></sidenote><heading>MICCOSUKEE SETTLEMENT</heading> <section> <num value="701"><inline class="smallCaps">Sec</inline>. 701. </num><heading><inline class="smallCaps">Short Title</inline>.—</heading><content>This title may be cited as the “Miccosukee Settlement Act of 1997”.</content> </section> <section> <num value="702"><inline class="smallCaps">Sec</inline>. 702. </num><heading><inline class="smallCaps">Congressional Findings</inline>.—</heading><chapeau class="inline">Congress finds that:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>There is pending before the United States District Court for the Southern District of Florida a lawsuit by the Miccosukee Tribe that involves the taking of certain tribal lands in connection with the construction of highway Interstate 75 by the Florida Department of Transportation.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The pendency of the lawsuit referred to in paragraph (1) clouds title of certain lands used in the maintenance and operation of the highway and hinders proper planning for future maintenance and operations.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The Florida Department of Transportation, with the concurrence of the Board of Trustees of the Internal Improvements Trust Fund of the State of Florida, and the Miccosukee Tribe have executed an agreement for the purpose of resolving the dispute and settling the lawsuit.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The agreement referred to in paragraph (3) requires the consent of Congress in connection with contemplated land transfers.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>The Settlement Agreement is in the interest of the Miccosukee Tribe, as the Tribe will receive certain monetary payments, new reservation lands to be held in trust by the United States, and other benefits.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>Land received by the United States pursuant to the Settlement Agreement is in consideration of Miccosukee Indian Reservation lands lost by the Miccosukee Tribe by virtue of transfer to the Florida Department of Transportation under the Settlement Agreement.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>The lands referred to in paragraph (6) as received by the United States will be held in trust by the United States for the use and benefit of the Miccosukee Tribe as Miccosukee Indian Reservation lands in compensation for the consideration given by the Tribe in the Settlement Agreement.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>Congress shares with the parties to the Settlement Agreement a desire to resolve the dispute and settle the lawsuit.</content></paragraph> </section> <section> <num value="703"><inline class="smallCaps">Sec</inline>. 703.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t25/s1750a">25 USC 1750a</ref>.</p></sidenote><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau class="inline">In this title:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Board of trustees of the internal improvements trust fund</inline>.—</heading><content>The term “Board of Trustees of the Internal Improvements Trust Fund” means the agency of the State of Florida holding legal title to and responsible for trust administration of certain lands of the State of Florida, consisting of the Governor, Attorney General, Commissioner of Agriculture, Commissioner of Education, Controller, Secretary of State, and Treasurer of the State of Florida, who are Trustees of the Board.<page identifier="/us/stat/111/1625">111 STAT. 1625</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Florida department of transportation</inline>.—</heading><chapeau>The term “Florida Department of Transportation” means the executive branch department and agency of the State of Florida that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>is responsible for the construction and maintenance of surface vehicle roads, existing pursuant to section 20.23, Florida Statutes; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>has the authority to execute the Settlement Agreement pursuant to section 334.044, Florida Statutes.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Lawsuit</inline>.—</heading><content>The term “lawsuit” means the action in the United States District Court for the Southern District of Florida, entitled Miccosukee Tribe of Indians of Florida v. State of Florida and Florida Department of Transportation, et al., docket No. 6285–Civ–Paine.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><heading><inline class="smallCaps">Miccosukee lands</inline>.—</heading><chapeau>The term “Miccosukee lands” means lands that are—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>held in trust by the United States for the use and benefit of the Miccosukee Tribe as Miccosukee Indian Reservation lands; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>identified pursuant to the Settlement Agreement for transfer to the Florida Department of Transportation.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><heading><inline class="smallCaps">Miccosukee tribe; tribe</inline>.—</heading><content>The terms “Miccosukee Tribe” and “Tribe” mean the Miccosukee Tribe of Indians of Florida, a tribe of American Indians recognized by the United States and organized under section 16 of the Act of June 18, 1934 (48 Stat. 987, chapter 576; 25 U.S.C. 476) and recognized by the State of Florida pursuant to chapter 285, Florida Statutes.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><heading><inline class="smallCaps">Secretary</inline>.—</heading><content>The term “Secretary” means the Secretary of the Interior.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><heading><inline class="smallCaps">Settlement agreement; agreement</inline>.—</heading><chapeau>The terms “Settlement Agreement” and “Agreement” mean the assemblage of documents entitled “Settlement Agreement” (with incorporated exhibits) that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>addresses the lawsuit; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num><clause class="inline"><num value="i">(i) </num><content>was signed on August 28, 1996, by Ben G. Watts (Secretary of the Florida Department of Transportation) and Billy Cypress (Chairman of the Miccosukee Tribe); and</content></clause> <clause class="indent2 fontsize10"><num value="ii">(ii) </num><content>after being signed, as described in clause (i), was concurred in by the Board of Trustees of the Internal Improvements Trust Fund of the State of Florida.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><heading><inline class="smallCaps">State of Florida</inline>.—</heading><chapeau>The term “State of Florida” means—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>all agencies or departments of the State of Florida, including the Florida Department of Transportation and the Board of Trustees of the Internal Improvements Trust Fund; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the State of Florida as a governmental entity.</content></subparagraph> </paragraph> </section> <section> <num value="704"><inline class="smallCaps">Sec</inline>. 704. </num><heading><inline class="smallCaps">Ratification</inline>.—</heading><content class="inline">The United States approves, ratifies,<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t25/s1750b">25 USC 1750b</ref>.</p></sidenote> and confirms the Settlement Agreement.</content> </section> <section> <num value="705"><inline class="smallCaps">Sec</inline>. 705. </num><heading><inline class="smallCaps">Authority of Secretary</inline>.—</heading><chapeau>As Trustee for the<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t25/s1750c">25 USC 1750c</ref>.</p></sidenote> Miccosukee Tribe, the Secretary shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num><subparagraph class="inline"><num value="A">(A) </num><content>aid and assist in the fulfillment of the Settlement Agreement at all times and in a reasonable manner; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>to accomplish the fulfillment of the Settlement Agreement in accordance with subparagraph (A), cooperate with and assist the Miccosukee Tribe;<page identifier="/us/stat/111/1626">111 STAT. 1626</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>upon finding that the Settlement Agreement is legally sufficient and that the State of Florida has the necessary authority to fulfill the Agreement—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>sign the Settlement Agreement on behalf of the United States; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>ensure that an individual other than the Secretary who is a representative of the Bureau of Indian Affairs also signs the Settlement Agreement;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><chapeau>upon finding that all necessary conditions precedent to the transfer of Miccosukee land to the Florida Department of Transportation as provided in the Settlement Agreement have been or will be met so that the Agreement has been or will be fulfilled, but for the execution of that land transfer and related land transfers—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>transfer ownership of the Miccosukee land to the Florida Department of Transportation in accordance with the Settlement Agreement, including in the transfer solely and exclusively that Miccosukee land identified in the Settlement Agreement for transfer to the Florida Department of Transportation; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>in conjunction with the land transfer referred to in subparagraph (A), transfer no land other than the land referred to in that subparagraph to the Florida Department of Transportation; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>upon finding that all necessary conditions precedent to the transfer of Florida lands from the State of Florida to the United States have been or will be met so that the Agreement has been or will be fulfilled but for the execution of that land transfer and related land transfers, receive and accept in trust for the use and benefit of the Miccosukee Tribe ownership of all land identified in the Settlement Agreement for transfer to the United States.</content></paragraph> </section> <section> <num value="706"><inline class="smallCaps">Sec</inline>. 706.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t25/s1750d">25 USC 1750d</ref>.</p></sidenote><heading><inline class="smallCaps">Miccosukee Indian Reservation Lands</inline>.—</heading><content class="inline">The lands transferred and held in trust for the Miccosukee Tribe under section 705(4) shall be Miccosukee Indian Reservation lands.</content> </section> <section> <num value="707"><inline class="smallCaps">Sec</inline>. 707.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t25/s1750e">25 USC 1750e</ref>.</p></sidenote><heading><inline class="smallCaps">Miscellaneous</inline>.</heading><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Rule of Construction</inline>.—</heading><chapeau>Nothing in this Act or the Settlement Agreement shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>affect the eligibility of the Miccosukee Tribe or its members to receive any services or benefits under any program of the Federal Government; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>diminish the trust responsibility of the United States to the Miccosukee Tribe and its members.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">No Reductions in Payments</inline>.—</heading><chapeau>No payment made pursuant to this Act or the Settlement Agreement shall result in any reduction or denial of any benefits or services under any program of the Federal Government to the Miccosukee Tribe or its members, with respect to which the Tribe or the members of the Tribe are entitled or eligible because of the status of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the Miccosukee Tribe as a federally recognized Indian tribe; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>any member of the Miccosukee Tribe as a member of the Tribe.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Taxation</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><heading><inline class="smallCaps">Moneys</inline>.—</heading><content>None of the moneys paid to the Miccosukee Tribe under this Act or the Settlement Agreement shall be taxable under Federal or State law.<page identifier="/us/stat/111/1627">111 STAT. 1627</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><heading><inline class="smallCaps">Lands</inline>.—</heading><content>None of the lands conveyed to the Miccosukee Tribe under this Act or the Settlement Agreement shall be taxable under Federal or State law.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Payments and conveyances not taxable events</inline>.—</heading><content><p class="indent0 fontsize10">No payment or conveyance referred to in paragraph (1) shall be considered to be a taxable event.</p> <p class="indent0 fontsize10">This Act may be cited as the “<shortTitle role="act">Department of the Interior and Related Agencies Appropriations Act, 1998</shortTitle>”.</p> </content></paragraph> </subsection> </section> Approved November 14, 1997.
LEGISLATIVE HISTORY—H.R. 2107: HOUSE REPORTS: Nos. 105–163 (Comm. on Appropriations) and 105–337 (Comm. of Conference). SENATE REPORTS: No. 105–56 (Comm. on Appropriations). CONGRESSIONAL RECORD, Vol. 143 (1997):

July 10, 11, 15, considered and passed House.

Sept. 11, 15–18, considered and passed Senate, amended.

Oct. 24, House agreed to conference report.

Oct. 28, Senate agreed to conference report.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):

Nov. 14, Presidential statement.

Nov. 20, President’s special message on line item veto.

 FEDERAL REGISTER, Vol. 62 (1997):

Nov. 24, Cancellation of items pursuant to the Line Item Veto Act.

 Public Law 105–84: Making further continuing appropriations for the fiscal year 1998, and for other purposes. Public Law84 Public Law 105–84 111 Stat. 1628 1997-11-14 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1628 Public Law105–84 105th Congress
Joint Resolution Making further continuing appropriations for the fiscal year 1998, and for other purposes.

Nov. 14, 1997

[H.J. Res. 106]

 Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,
That section 106(3) of Public

Ante, pp 1156. 1343, 1453, 1454, 1456.

Ante, p. 1158.

 Law 105–46 is further amended by striking “November 14, 1997” and inserting in lieu thereof “November 26, 1997”, and each provision amended by sections 122 and 123 of such public law shall be applied as if “November 26, 1997” was substituted for “October 23, 1997”.
Approved November 14, 1997.
LEGISLATIVE HISTORY—H.J. Res. 106: CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 13, considered and passed House and Senate.

 Public Law 105–85: To authorize appropriations for fiscal year 1998 for military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe personnel strengths for such fiscal year for the Armed Forces, and for other purposes. Public Law85 Public Law 105–85 111 Stat. 1629 1997-11-18 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 1629 Public Law105–85 105th Congress
An Act To authorize appropriations for fiscal year 1998 for military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe personnel strengths for such fiscal year for the Armed Forces, and for other purposes.

Nov. 18, 1997

[H.R. 1119]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

National Defense Authorization Act for Fiscal Year 1998.
SECTION 1. SHORT TITLE. This Act may be cited as the “National Defense Authorization Act for Fiscal Year 1998”.
SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS. (a) Divisions.—This Act is organized into three divisions as follows: (1) Division A—Department of Defense Authorizations. (2) Division B—Military Construction Authorizations. (3) Division C—Department of Energy National Security Authorizations and Other Authorizations. (b) Table of Contents.—The table of contents for this Act is as follows: Sec. 1. Sec. 2. Sec. 3. DIVISION A— TITLE I— Subtitle A— Sec. 101. Sec. 102. Sec. 103. Sec. 104. Sec. 105. Sec. 106. Sec. 107. Sec. 108. Sec. 109. Subtitle B— Sec. 111. Sec. 112. Sec. 113. Subtitle C— Sec. 121. Sec. 122. Sec. 123. Subtitle D— Sec. 131. Sec. 132. Sec. 133. Subtitle E— Sec. 141. Sec. 142. TITLE II— Subtitle A— Sec. 201. Sec. 202. Sec. 203. Sec. 204. Subtitle B— Sec. 211. Sec. 212. Sec. 213. Sec. 214. Sec. 215. Sec. 216. Sec. 217. Subtitle C— Sec. 231. Sec. 232. Sec. 233. Sec. 234. Sec. 235. Sec. 236. Subtitle D— Sec. 241. Sec. 242. Sec. 243. Sec. 244. Sec. 245. TITLE III— Subtitle A— Sec. 301. Sec. 302. Sec. 303. Sec. 304. Sec. 305. Sec. 306. Sec. 307. Sec. 308. Sec. 309. Sec. 310. Sec. 311. Subtitle B— Sec. 321. Sec. 322. Sec. 323. Sec. 324. Sec. 325. Sec. 326. Sec. 327. Sec. 328. Sec. 329. Sec. 330. Sec. 331. Sec. 332. Subtitle C— Sec. 341. Sec. 342. Sec. 343. Sec. 344. Sec. 345. Sec. 346. Sec. 347. Sec. 348. Sec. 349. Sec. 350. Sec. 351. Subtitle D— Sec. 355. Sec. 356. Sec. 357. Sec. 358. Sec. 359. Sec. 360. Sec. 361. Sec. 362. Sec. 363. Sec. 364. Sec. 365. Sec. 366. Sec. 367. Subtitle E— Sec. 371. Sec. 372. Sec. 373. Sec. 374. Sec. 375. Sec. 376. Subtitle F— Sec. 381. Sec. 382. Sec. 383. Sec. 384. Sec. 385. Sec. 386. Sec. 387. Sec. 388. Sec. 389. Sec. 390. Sec. 391. Sec. 392. Sec. 393. Sec. 394. Sec. 395. TITLE IV— Subtitle A— Sec. 401. Sec. 402. Subtitle B— Sec. 411. Sec. 412. Sec. 413. Subtitle C— Sec. 421. TITLE V— Subtitle A— Sec. 501. Sec. 502. Sec. 503. Sec. 504. Sec. 505. Sec. 506. Sec. 507. Sec. 508. Subtitle B— Sec. 511. Sec. 512. Sec. 513. Sec. 514. Sec. 515. Sec. 516. Sec. 517. Subtitle C— Sec. 521. Sec. 522. Sec. 523. Sec. 524. Subtitle D— Sec. 531. Sec. 532. Sec. 533. Subtitle E— Part I— Sec. 541. Sec. 542. Sec. 543. Sec. 544. Sec. 545. Sec. 546. Part II— Sec. 551. Sec. 552. Sec. 553. Part III— Sec. 556. Sec. 557. Subtitle F— Sec. 561. Sec. 562. Sec. 563. Sec. 564. Sec. 565. Sec. 566. Subtitle G— Sec. 571. Sec. 572. Sec. 573. Sec. 574. Sec. 575. Sec. 576. Sec. 577. Subtitle H— Sec. 581. Sec. 582. Subtitle I— Sec. 591. Sec. 592. Sec. 593. Sec. 594. Sec. 595. Sec. 596. Sec. 597. Sec. 598. Sec. 599. TITLE VI— Subtitle A— Sec. 601. Sec. 602. Sec. 603. Sec. 604. Sec. 605. Subtitle B— Sec. 611. Sec. 612. Sec. 613. Sec. 614. Sec. 615. Sec. 616. Sec. 617. Sec. 618. Sec. 619. Sec. 620. Sec. 621. Sec. 622. Sec. 623. Sec. 624. Sec. 625. Sec. 626. Sec. 627. Subtitle C— Sec. 631. Sec. 632. Subtitle D— Sec. 641. Sec. 642. Sec. 643. Sec. 644. Sec. 645. Subtitle E— Sec. 651. Sec. 652. Sec. 653. Sec. 654. Sec. 655. TITLE VII— Subtitle A— Sec. 701. Sec. 702. Sec. 703. Subtitle B— Sec. 711. Sec. 712. Subtitle C— Sec. 721. Sec. 722. Sec. 723. Subtitle D— Sec. 731. Sec. 732. Sec. 733. Sec. 734. Sec. 735. Sec. 736. Sec. 737. Sec. 738. Sec. 739. Subtitle E— Sec. 741. Sec. 742. Sec. 743. Sec. 744. Sec. 745. Sec. 746. Sec. 747. Sec. 748. Sec. 749. Sec. 750. Sec. 751. Sec. 752. Subtitle F— Sec. 761. Sec. 762. Sec. 763. Sec. 764. Sec. 765. Sec. 766. Sec. 767. Sec. 768. Sec. 769. Sec. 770. Sec. 771. TITLE VIII— Subtitle A— Sec. 801. Sec. 802. Sec. 803. Sec. 804. Sec. 805. Sec. 806. Sec. 807. Sec. 808. Sec. 809. Sec. 810. Sec. 811. Subtitle B— Sec. 821. Sec. 822. Subtitle C— Sec. 831. Sec. 832. Sec. 833. Sec. 834. Sec. 835. Subtitle D— Sec. 841. Sec. 842. Sec. 843. Sec. 844. Sec. 845. Sec. 846. Sec. 847. Sec. 848. Sec. 849. Sec. 850. Sec. 851. Sec. 852. Sec. 853. Sec. 854. Sec. 855. TITLE IX— Subtitle A— Sec. 901. Sec. 902. Sec. 903. Sec. 904. Sec. 905. Sec. 906. Sec. 907. Subtitle B— Sec. 911. Sec. 912. Subtitle C— Sec. 921. Sec. 922. Sec. 923. Subtitle D— Sec. 931. Sec. 932. Sec. 933. Sec. 934. TITLE X— Subtitle A— Sec. 1001. Sec. 1002. Sec. 1003. Sec. 1004. Sec. 1005. Sec. 1006. Sec. 1007. Sec. 1008. Sec. 1009. Sec. 1010. Sec. 1011. Sec. 1012. Sec. 1013. Sec. 1014. Sec. 1015. Subtitle B— Sec. 1021. Sec. 1022. Sec. 1023. Sec. 1024. Sec. 1025. Sec. 1026. Sec. 1027. Subtitle C— Sec. 1031. Sec. 1032. Sec. 1033. Sec. 1034. Subtitle D— Sec. 1041. Sec. 1042. Sec. 1043. Sec. 1044. Sec. 1045. Sec. 1046. Subtitle E— Sec. 1051. Sec. 1052. Subtitle F— Sec. 1061. Sec. 1062. Sec. 1063. Sec. 1064. Sec. 1065. Sec. 1066. Sec. 1067. Subtitle G— Sec. 1071. Sec. 1072. Sec. 1073. Sec. 1074. Sec. 1075. Sec. 1076. Sec. 1077. Sec. 1078. Sec. 1079. Sec. 1080. Sec. 1081. Sec. 1082. Sec. 1083. Sec. 1084. Sec. 1085. Sec. 1086. Sec. 1087. Sec. 1088. TITLE XI— Sec. 1101. Sec. 1102. Sec. 1103. Sec. 1104. Sec. 1105. Sec. 1106. Sec. 1107. Sec. 1108. Sec. 1109. TITLE XII— Subtitle A— Sec. 1201. Sec. 1202. Sec. 1203. Sec. 1204. Sec. 1205. Sec. 1206. Subtitle B— Sec. 1211. Sec. 1212. Sec. 1213. Sec. 1214. Sec. 1215. Subtitle C— Sec. 1221. Sec. 1222. Sec. 1223. Sec. 1224. Sec. 1225. Sec. 1226. Sec. 1227. Sec. 1228. Sec. 1229. Sec. 1230. Sec. 1231. Sec. 1232. TITLE XIII— Sec. 1301. Sec. 1302. Sec. 1303. Sec. 1304. Sec. 1305. Sec. 1306. Sec. 1307. Sec. 1308. Sec. 1309. TITLE XIV— Sec. 1401. Sec. 1402. Sec. 1403. Sec. 1404. Sec. 1405. Sec. 1406. Sec. 1407. Sec. 1408. Sec. 1409. Sec. 1410. TITLE XV— Sec. 1501. Sec. 1502. Sec. 1503. Sec. 1504. Sec. 1505. Sec. 1506. Sec. 1507. Sec. 1508. Sec. 1509. Sec. 1510. Sec. 1511. Sec. 1512. Sec. 1513. Sec. 1514. Sec. 1515. Sec. 1516. DIVISION B— Sec. 2001. TITLE XXI— Sec. 2101. Sec. 2102. Sec. 2103. Sec. 2104. Sec. 2105. TITLE XXII— Sec. 2201. Sec. 2202. Sec. 2203. Sec. 2204. Sec. 2205. Sec. 2206. TITLE XXIII— Sec. 2301. Sec. 2302. Sec. 2303. Sec. 2304. Sec. 2305. TITLE XXIV— Sec. 2401. Sec. 2402. Sec. 2403. Sec. 2404. Sec. 2405. Sec. 2406. Sec. 2407. Sec. 2408. TITLE XXV— Sec. 2501. Sec. 2502. TITLE XXVI— Sec. 2601. Sec. 2602. Sec. 2603. TITLE XXVII— Sec. 2701. Sec. 2702. Sec. 2703. Sec. 2704. Sec. 2705. Sec. 2706. Sec. 2707. TITLE XXVIII— Subtitle A— Sec. 2801. Sec. 2802. Sec. 2803. Sec. 2804. Sec. 2805. Subtitle B— Sec. 2811. Sec. 2812. Sec. 2813. Sec. 2814. Sec. 2815. Sec. 2816. Subtitle C— Sec. 2821. Sec. 2822. Sec. 2823. Sec. 2824. Sec. 2825. Sec. 2826. Subtitle D— Part I— Sec. 2831. Sec. 2832. Sec. 2833. Sec. 2834. Sec. 2835. Sec. 2836. Sec. 2837. Sec. 2838. Sec. 2839. Sec. 2840. Sec. 2841. Part II— Sec. 2851. Sec. 2852. Sec. 2853. Part III— Sec. 2861. Sec. 2862. Sec. 2863. Sec. 2864. Sec. 2865. Sec. 2866. Sec. 2867. Subtitle E— Sec. 2871. Sec. 2872. Sec. 2873. Sec. 2874. TITLE XXIX— Sec. 2901. Sec. 2902. Sec. 2903. Sec. 2904. Sec. 2905. Sec. 2906. Sec. 2907. Sec. 2908. Sec. 2909. Sec. 2910. Sec. 2911. Sec. 2912. Sec. 2913. Sec. 2914. DIVISION C— TITLE XXXI— Subtitle A— Sec. 3101. Sec. 3102. Sec. 3103. Sec. 3104. Subtitle B— Sec. 3121. Sec. 3122. Sec. 3123. Sec. 3124. Sec. 3125. Sec. 3126. Sec. 3127. Sec. 3128. Sec. 3129. Subtitle C— Sec. 3131. Sec. 3132. Sec. 3133. Sec. 3134. Sec. 3135. Sec. 3136. Sec. 3137. Sec. 3138. Sec. 3139. Sec. 3140. Sec. 3141. Subtitle D— Sec. 3151. Sec. 3152. Sec. 3153. Sec. 3154. Sec. 3155. Sec. 3156. Sec. 3157. Sec. 3158. Sec. 3159. Sec. 3160. Sec. 3161. Sec. 3162. Sec. 3163. Sec. 3164. Sec. 3165. Sec. 3166. Sec. 3167. Sec. 3168. Sec. 3169. Sec. 3170. TITLE XXXII— Sec. 3201. Sec. 3202. TITLE XXXIII— Sec. 3301. Sec. 3302. Sec. 3303. Sec. 3304. Sec. 3305. Sec. 3306. Sec. 3307. TITLE XXXIV— Sec. 3401. Sec. 3402. Sec. 3403. Sec. 3404. TITLE XXXV— Subtitle A— Sec. 3501. Sec. 3502. Sec. 3503. Sec. 3504. Subtitle B— Sec. 3511. Sec. 3512. Part I— Sec. 3521. Sec. 3522. Sec. 3523. Sec. 3524. Sec. 3525. Sec. 3526. Sec. 3527. Sec. 3528. Part II— Sec. 3541. Sec. 3542. Sec. 3543. Sec. 3544. Sec. 3545. Sec. 3546. Sec. 3547. Sec. 3548. Sec. 3549. Sec. 3550. TITLE XXXVI— Sec. 3601. Sec. 3602. Sec. 3603. Sec. 3604. Sec. 3605. Sec. 3606.
SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED. For purposes of this Act, the term “congressional defense committees” means— (1) the Committee on Armed Services and the Committee on Appropriations of the Senate; and (2) the Committee on National Security and the Committee on Appropriations of the House of Representatives.
DIVISION A—DEPARTMENT OF DEFENSE AUTHORIZATIONS <num value="I">TITLE I—</num><heading>PROCUREMENT</heading> <toc> <referenceItem role="subtitle"><designator>Subtitle A—</designator><label>Authorization of Appropriations</label></referenceItem> <referenceItem role="section"><designator>Sec. 101.</designator> <label>Army.</label></referenceItem> <referenceItem role="section"><designator>Sec. 102.</designator> <label>Navy and Marine Corps.</label></referenceItem> <referenceItem role="section"><designator>Sec. 103.</designator> <label>Air Force.</label></referenceItem> <referenceItem role="section"><designator>Sec. 104.</designator> <label>Defense-wide activities.</label></referenceItem> <referenceItem role="section"><designator>Sec. 105.</designator> <label>Reserve components.</label></referenceItem> <referenceItem role="section"><designator>Sec. 106.</designator> <label>Defense Inspector General.</label></referenceItem> <referenceItem role="section"><designator>Sec. 107.</designator> <label>Chemical Demilitarization Program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 108.</designator> <label>Defense health programs.</label></referenceItem> <referenceItem role="section"><designator>Sec. 109.</designator> <label>Defense Export Loan Guarantee Program.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle B—</designator><label>Army Programs</label></referenceItem> <referenceItem role="section"><designator>Sec. 111.</designator> <label>Army helicopter modernization plan.</label></referenceItem> <referenceItem role="section"><designator>Sec. 112.</designator> <label>Multiyear procurement authority for specified Army programs.</label></referenceItem> <referenceItem role="section"><designator>Sec. 113.</designator> <label>M113 vehicle modifications.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle C—</designator><label>Navy Programs</label></referenceItem> <referenceItem role="section"><designator>Sec. 121.</designator> <label>New Attack Submarine program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 122.</designator> <label>CVN–77 nuclear aircraft carrier program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 123.</designator> <label>Exclusion from cost limitation for Seawolf submarine program.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle D—</designator><label>Air Force Programs</label></referenceItem> <referenceItem role="section"><designator>Sec. 131.</designator> <label>Authorization for B–2 bomber program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 132.</designator> <label>ALR radar warning receivers.</label></referenceItem> <referenceItem role="section"><designator>Sec. 133.</designator> <label>Analysis of requirements for replacement of engines on military aircraft derived from Boeing 707 aircraft.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle E—</designator><label>Other Matters</label></referenceItem> <referenceItem role="section"><designator>Sec. 141.</designator> <label>Pilot program on sales of manufactured articles and services of certain Army industrial facilities without regard to availability from domestic sources.</label></referenceItem> <referenceItem role="section"><designator>Sec. 142.</designator> <label>NATO Joint Surveillance/Target Attack Radar System.</label></referenceItem> </toc> <subtitle> <num value="A">Subtitle A—</num><heading>Authorization of Appropriations</heading> <section> <num value="101">SEC. 101. </num><heading>ARMY.</heading> <chapeau>Funds are hereby authorized to be appropriated for fiscal year 1998 for procurement for the Army as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>For aircraft, $1,316,233,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>For missiles, $742,639,000.<page identifier="/us/stat/111/1646">111 STAT. 1646</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>For weapons and tracked combat vehicles, $1,297,641,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>For ammunition, $1,011,193,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>For other procurement, $2,566,208,000.</content></paragraph> </section> <section> <num value="102">SEC. 102. </num><heading>NAVY AND MARINE CORPS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Navy</inline>.—</heading><chapeau>Funds are hereby authorized to be appropriated for fiscal year 1998 for procurement for the Navy as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>For aircraft, $6,437,330,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>For weapons, including missiles and torpedoes, $1,089,443,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>For shipbuilding and conversion, $8,195,269,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>For other procurement, $2,970,867,000.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><content>Marine Corps.—Funds are hereby authorized to be appropriated for fiscal year 1998 for procurement for the Marine Corps in the amount of $460,081,000.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><content>Navy and Marine Corps Ammunition.—Funds are hereby authorized to be appropriated for procurement of ammunition for the Navy and the Marine Corps in the amount of $364,744,000.</content> </subsection> </section> <section> <num value="103">SEC. 103. </num><heading>AIR FORCE.</heading> <chapeau>Funds are hereby authorized to be appropriated for fiscal year 1998 for procurement for the Air Force as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>For aircraft, $6,425,749,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>For missiles, $2,376,301,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>For ammunition, $398,534,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>For other procurement, $6,543,580,000.</content></paragraph> </section> <section> <num value="104">SEC. 104. </num><heading>DEFENSE-WIDE ACTIVITIES.</heading> <content>Funds are hereby authorized to be appropriated for fiscal year 1998 for Defense-wide procurement in the amount of $2,057,150,000.</content> </section> <section> <num value="105">SEC. 105. </num><heading>RESERVE COMPONENTS.</heading> <chapeau>Funds are hereby authorized to be appropriated for fiscal year 1998 for procurement of aircraft, vehicles, communications equipment, and other equipment for the reserve components of the Armed Forces as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>For the Army National Guard, $70,000,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>For the Air National Guard, $303,000,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>For the Army Reserve, $75,000,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>For the Naval Reserve, $80,000,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>For the Air Force Reserve, $50,000,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>For the Marine Corps Reserve, $65,000,000.</content></paragraph> </section> <section> <num value="106">SEC. 106. </num><heading>DEFENSE INSPECTOR GENERAL.</heading> <content>Funds are hereby authorized to be appropriated for fiscal year 1998 for procurement for the Inspector General of the Department of Defense in the amount of $1,800,000.</content> </section> <section> <num value="107">SEC. 107. </num><heading>CHEMICAL DEMILITARIZATION PROGRAM.</heading> <chapeau>There is hereby authorized to be appropriated for fiscal year 1998 the amount of $600,700,000 for—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the destruction of lethal chemical agents and munitions in accordance with section 1412 of the Department of Defense Authorization Act, 1986 (50 U.S.C. 1521); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the destruction of chemical warfare materiel of the United States that is not covered by section 1412 of such Act.<page identifier="/us/stat/111/1647">111 STAT. 1647</page></content></paragraph> </section> <section> <num value="108">SEC. 108. </num><heading>DEFENSE HEALTH PROGRAMS.</heading> <content>Funds are hereby authorized to be appropriated for fiscal year 1998 for the Department of Defense for procurement for carrying out health care programs, projects, and activities of the Department of Defense in the total amount of $274,068,000.</content> </section> <section> <num value="109">SEC. 109. </num><heading>DEFENSE EXPORT LOAN GUARANTEE PROGRAM.</heading> <content>Funds are hereby authorized to be appropriated for fiscal year 1998 for the Department of Defense for carrying out the Defense Export Loan Guarantee Program under section 2540 of title 10, United States Code, in the total amount of $1,231,000.</content> </section> </subtitle> <subtitle> <num value="B">Subtitle B—</num><heading>Army Programs</heading> <section> <num value="111">SEC. 111. </num><heading>ARMY HELICOPTER MODERNIZATION PLAN.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Limitation</inline>.—</heading><content>Not more than 80 percent of the total of the amounts authorized to be appropriated pursuant to section 101(1), 105(1), and 105(3) for modifications or upgrades of helicopters may be obligated before the date that is 30 days after the date on which the Secretary of the Army submits to the congressional defense committees a comprehensive plan for the modernization of the Army’s helicopter fleet.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Content of Plan</inline>.—The </heading><chapeau>plan required by subsection (a) shall include the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>A detailed assessment of the Army’s present and future helicopter requirements and present and future helicopter inventory, including number of aircraft, age of aircraft, availability of spare parts, flight hour costs, roles and functions assigned to the fleet as a whole and to its individual types of aircraft, and the mix of active component aircraft and reserve component aircraft in the fleet.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Estimates and analysis of requirements and funding proposed for procurement of new aircraft.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>An analysis of the requirements for and funding proposed for extended service plans or service life extension plans for fleet aircraft.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>A plan for retiring aircraft no longer required or capable of performing assigned functions, including a discussion of opportunities to eliminate older aircraft models and to focus future funding on current or future generation aircraft.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>The implications of the plan for the defense industrial base.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Relationship to Future-Years Defense Program</inline>.—</heading><content>The Secretary of the Army shall design the plan under subsection (a) so that the plan could be implemented within the funding levels expected to be available for Army aircraft programs in the next future-years defense program to be submitted to Congress pursuant to section 221(a) of title 10, United States Code. The Secretary shall include in the plan a certification that the program of the Army prepared for inclusion in the future-years defense program submitted to Congress in 1998 pursuant to section 221(a) of title 10, United States Code, included full funding for implementation of the plan.<page identifier="/us/stat/111/1648">111 STAT. 1648</page></content> </subsection> </section> <section> <num value="112">SEC. 112. </num><heading>MULTIYEAR PROCUREMENT AUTHORITY FOR SPECIFIED ARMY PROGRAMS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">AH–64D Longbow Apache Fire Control Radar</inline>.—</heading><content>Beginning with the fiscal year 1998 program year, the Secretary of the Army may, in accordance with section 2306b of title 10, United States Code, enter into a multiyear procurement contract for procurement of the AH–64D Longbow Apache fire control radar.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Medium Tactical Vehicles</inline>—</heading><content>Beginning with the fiscal year 1998 program year, the Secretary of the Army may, in accordance with section 2306b of title 10, United States Code, enter into a multiyear procurement contract for procurement of vehicles of the Family of Medium Tactical Vehicles. The contract may be for a term of four years and may include an option to extend the contract for one additional year.</content> </subsection> </section> <section> <num value="113">SEC. 113. </num><heading>M113 VEHICLE MODIFICATIONS.</heading> <content>Of the amount made available for the Army pursuant to section 101(3), $35,244,000 shall be available only for the procurement and installation of A3 upgrade kits for the M113 vehicle.</content> </section> </subtitle> <subtitle> <num value="C">Subtitle C—</num><heading>Navy Programs</heading> <section> <num value="121">SEC. 121. </num><heading>NEW ATTACK SUBMARINE PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Amounts Authorized From SCN Account</inline>.—</heading><content>Of the amounts authorized to be appropriated by section 102(a)(3) for fiscal year 1998, $2,599,800,000 is available for the New Attack Submarine Program.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Contract Authority</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of the Navy may enter into a contract for the procurement of four submarines under the New Attack Submarine program.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>Any contract entered into under paragraph (1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>shall, notwithstanding section 2304(k) of title 10, United States Code, be awarded to one of the two eligible shipbuilders as the prime contractor on the condition that the prime contractor enter into one or more subcontracts (under such prime contract) with the other of the two eligible shipbuilders as contemplated in the New Attack Submarine Team Agreement; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><chapeau>shall provide for—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>construction of the first submarine in fiscal year 1998; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>advance construction and advance procurement of materiel for the second, third, and fourth submarines in fiscal year 1998.</content></clause> </subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><chapeau>The following shipbuilders are eligible for a contract under this subsection:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>The Electric Boat Corporation.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>The Newport News Shipbuilding and Drydock Company.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="4">(4) </num><content>In paragraph (2)(A), the term “New Attack Submarine Team Agreement” means the agreement known as the Team Agreement between Electric Boat Corporation and Newport News Shipbuilding and Drydock Company, dated February 25, 1997, that was submitted to Congress by the Secretary of the Navy on March 31, 1997.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Limitation of Liability</inline>.—</heading><content>If a contract entered into under this section is terminated, the United States shall not be liable <page identifier="/us/stat/111/1649">111 STAT. 1649</page>for termination costs in excess of the total amount appropriated for the New Attack Submarine program.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Repeals of Superseded Provisions of Previous Defense Authorization Laws</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>Section 131 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104–106; 110 Stat. 206) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><chapeau>in subsection (a)(1)(B)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>in clause (i), by striking out which shall be built by Electric Boat Division”; and</content></clause> <clause class="indent3 fontsize10"><num value="i">(ii) </num><content>in clause (ii), by striking out which shall be built by Newport News Shipbuilding”; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>in subsection (b), by striking out paragraph (1).</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>Section 121 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2441) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><chapeau>in subsection (a)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>in paragraph (1)(B), by striking out “to be built by Electric Boat Division”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>in paragraph (1)(C), by striking out “to be built by Newport News Shipbuilding”;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>in subsection (d), by striking out paragraph (2);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>in subsection (e), by striking out paragraph (1); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>in subsection (g), by striking out “the committees specified in subsection (e)(1)” in paragraphs (3) and (4) and inserting in lieu thereof “the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Inapplicability of Superseded Aspects of Attack Submarine Development Plan</inline>.—</heading><content>The Secretary of Defense and the Secretary of the Navy are not required to carry out the portions of the program plan submitted under subsection (c) of section 131 of the National Defense Authorization Act for Fiscal Year 1996 that are included in the plan pursuant to subparagraphs (A), (B), and (E) of paragraph (2) of such subsection.</content> </subsection> </section> <section> <num value="122">SEC. 122. </num><heading>CVN–77 NUCLEAR AIRCRAFT CARRIER PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Authorization of Ship</inline>.—</heading><content>The Secretary of the Navy is authorized to procure the aircraft carrier to be designated CVN–77, subject to the availability of appropriations for that purpose.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Amount Authorized From SCN Account</inline>.—</heading><content>Of the amount authorized to be appropriated by section 102(a)(3) for fiscal year 1998, $50,000,000 is available for the advance procurement and advance construction of components (including nuclear components) for the CVN–77 aircraft carrier program. The Secretary of the Navy may enter into a contract or contracts with the shipbuilder and other entities for the advance procurement and advance construction of those components.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Other Funds</inline>.—</heading><content>Of the funds authorized to be appropriated under this Act for programs, projects, and activities of the military departments and Defense Agencies, other than the CVN–77 aircraft carrier program, up to $295,000,000 may be made available, as the Secretary of Defense may direct, for the CVN–77 aircraft carrier program. Authority to make transfers under this subsection is in addition to the transfer authority provided in section 1001.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Management of Funds</inline>.—</heading><content>The Secretary of the Navy shall obligate and expend the funds available for advance procurement and advance construction of components for the CVN–77 aircraft carrier program for fiscal year 1998 in a manner that is designed <page identifier="/us/stat/111/1650">111 STAT. 1650</page>to result in such cost savings as may be required in order to meet the cost limitation specified in subsection (f).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Adjustments to Future-Years Defense Program</inline>.—</heading><content>The Secretary of Defense shall make such plans for the CVN–77 aircraft carrier program as are necessary to attain for the program the cost savings that are contemplated for the procurement of the CVN–77 aircraft carrier in the March 1997 procurement plan.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Limitation on Total Cost of Procurement</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of the Navy shall structure the program for the procurement of the CVN–77 aircraft carrier, and shall manage that program, so that the total cost of the procurement of the CVN–77 aircraft carrier does not exceed $4,600,000,000 (such amount being the estimated cost for the procurement of the CVN–77 aircraft carrier in the March 1997 procurement plan).</content> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>The Secretary of the Navy may adjust the amount set forth in paragraph (1) for the CVN–77 aircraft carrier program by the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>The amounts of outfitting costs and post-delivery costs incurred for the program.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>The amounts of increases or decreases in costs attributable to economic inflation after September 30, 1997.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>The amounts of increases or decreases in costs attributable to compliance with changes in Federal, State, or local laws enacted after September 30, 1997.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>The amounts of increases or decreases in costs of the program that are attributable to new technology built into the CVN–77 aircraft carrier, as compared to the technology built into the baseline design of the CVN–76 aircraft carrier.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E) </num><content>The amounts of increases or decreases in costs resulting from changes the Secretary proposes in the funding plan (as contemplated in the March 1997 procurement plan) on which the projected savings are based.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Notice.</p></sidenote><content>The Secretary of the Navy shall annually submit to Congress, at the same time as the budget is submitted under section 1105(a) of title 31, United States Code, written notice of any change in the amount set forth in paragraph (1) during the preceding fiscal year that the Secretary has determined to be associated with a cost referred to in paragraph (2).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num><heading><inline class="smallCaps">March 1997 Procurement Plan Defined</inline>.—</heading><content>In this section, the term “March 1997 procurement plan” means the procurement plan for the CVN–77 aircraft carrier that was submitted to the Navy and Congress by the shipbuilder in March 1997.</content> </subsection> </section> <section> <num value="123">SEC. 123. </num><heading>EXCLUSION FROM COST LIMITATION FOR SEAWOLF SUBMARINE PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Authority To Exclude Amounts Appropriated for Canceled Vessels</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of the Navy may exclude from the application of the cost limitation for the Seawolf submarine program such amounts, not in excess of $272,400,000, as were appropriated for fiscal years 1990, 1991, and 1992 for procurement of Seawolf-class submarines that have been canceled.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>For the purposes of this subsection, the term “cost limitation for the Seawolf submarine program” means the limitation in section 133(a) of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104–106; 110 Stat. 211).<page identifier="/us/stat/111/1651">111 STAT. 1651</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Determination and Report by Inspector General</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Not later than March 30, 1998, the Inspector General of the Department of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report containing the Inspector General’s determination as to whether any further exclusion from, adjustment to exclusion from, or increase in the dollar amount of the cost limitation referred to in subsection (a) will be required.</content> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>The Inspector General shall include in the report the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>A thorough and comprehensive accounting for the amount of $745,400,000 identified by the Secretary of the Navy as having been obligated or expended for the detailed design for Seawolf-class submarines that have been canceled and for the procurement of nuclear components and construction spare parts for those canceled submarines, including a statement of the current disposition of items specifically purchased using those funds.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>Cost growth, if any, in the cost of construction of the SSN–21, SSN–22, and SSN–23 Seawolf-class submarines that has not been reported to Congress before the date of the report of the Inspector General.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>The current cost estimate of the Secretary of the Navy for completion of the SSN–21, SSN–22, and SSN–23 Seawolfclass submarines.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><content>The Inspector General shall include in the report such supporting information and analyses as the Inspector General considers appropriate for aiding in understanding the determination and findings of the Inspector General.</content></paragraph> </subsection> </section> </subtitle> <subtitle> <num value="D">Subtitle D—</num><heading>Air Force Programs</heading> <section> <num value="131">SEC. 131. </num><heading>AUTHORIZATION FOR B–2 BOMBER PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Funding Availability</inline>.—</heading><content>Of the funds made available for procurement of aircraft for the Air Force for fiscal year 1998, the amount of $331,000,000 is available for long-lead activities related to the procurement of additional B–2 bomber aircraft. However, if the President determines that no additional B–2 bombers should be procured during fiscal year 1998 and certifies that decision to Congress, the funding authorized in the preceding sentence shall be made available to modify and repair the existing fleet of B–2 bomber aircraft.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Secretary of Defense To Preserve Options of President</inline>.—</heading><content>The Secretary of Defense shall ensure that all appropriate actions are taken to preserve the options of the President until the panel to review long-range airpower established by section 8131 of the Department of Defense Appropriations Act, 1998 (Public Law 105–56; 111 Stat. 1249), submits its report.</content> </subsection> </section> <section> <num value="132">SEC. 132. </num><heading>AIR RADAR WARNING RECEIVERS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Cost and Operation Effectiveness Analysis</inline>.—</heading><content>The Secretary of the Air Force shall conduct a cost and operation effectiveness analysis of upgrading the ALR69 radar warning receiver as compared with the further acquisition of the ALR56M radar warning receiver.<page identifier="/us/stat/111/1652">111 STAT. 1652</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Submission to Congress</inline>.—</heading><content>The Secretary shall submit the cost and operation effectiveness analysis to the congressional defense committees not later than April 2, 1998.</content> </subsection> </section> <section> <num value="133">SEC. 133. </num><heading>ANALYSIS OF REQUIREMENTS FOR REPLACEMENT OF ENGINES ON MILITARY AIRCRAFT’ DERIVED FROM BOEING 707 AIRCRAFT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Analysis Required</inline>.—</heading><content>The Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives an analysis, to be carried out by the Under Secretary of Defense for Acquisition and Technology, of the requirements of the Department of Defense for replacing engines on the aircraft of the Department of Defense that are derived from the Boeing 707 aircraft and the costs of meeting those requirements.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Content</inline>.—</heading><chapeau>The analysis shall include the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The number of aircraft described in subsection (a) that are in the inventory of the Department of Defense as of October 1, 1997, and the number of such aircraft that are projected to be in the inventory of the Department as of October 1, 2002, as of October 1, 2007, and as of October 1, 2012.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>For each type of such aircraft, the estimated cost of operating the aircraft for each fiscal year beginning with fiscal year 1998 and ending with fiscal year 2014, taking into account historical patterns of usage and projected support costs.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>For each type of such aircraft, the estimated costs and the benefits of replacing the engines on the aircraft, analyzed on the basis of the experience under the limited program for replacing the engines on RC–135 aircraft that was undertaken during fiscal years 1995, 1996, and 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Various plans for replacement of engines that the Under Secretary considers best on the basis of costs and benefits, (c) Submission Deadline.—The analysis under subsection (a) shall be submitted not later than March 1, 1998.</content></paragraph> </subsection> </section> </subtitle> <subtitle> <num value="E">Subtitle E—</num><heading>Other Matters</heading> <section> <num value="141">SEC. 141. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s4543">10 USC 4543 note</ref>.</p></sidenote><heading>PILOT PROGRAM ON SALES OF MANUFACTURED ARTICLES AND SERVICES OF CERTAIN ARMY INDUSTRIAL FACILITIES WITHOUT REGARD TO AVAILABILITY FROM DOMESTIC SOURCES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Pilot Program Required</inline>.—</heading><content>During fiscal years 1998 and 1999, the Secretary of the Army shall carry out a pilot program to test the efficacy and appropriateness of selling manufactured articles and services of Army industrial facilities under section 4543 of title 10, United States Code, without regard to the availability of the articles and services from United States commercial sources. In carrying out the pilot program, the Secretary may use articles manufactured at, and services provided by, not more than three Army industrial facilities.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Temporary Waiver of Requirement for Determination of Unavailability From Domestic Source</inline>.—</heading><chapeau>Under the pilot program, the Secretary of the Army is not required under section 4543(a)(5) of title 10, United States Code, to determine whether an article or service is available from a commercial source located in the United States in the case of any of the following sales <page identifier="/us/stat/111/1653">111 STAT. 1653</page>for which a solicitation of offers is issued during fiscal year 1998 or 1999:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>A sale of articles to be incorporated into a weapon system being procured by the Department of Defense.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>A sale of services to be used in the manufacture of a weapon system being procured by the Department of Defense.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Review by Inspector General</inline>.—</heading><chapeau>The Inspector General<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> of the Department of Defense shall review the experience under the pilot program under this section and, not later than July 1, 1999, submit to Congress a report on the results of the review. The report shall contain the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The Inspector General’s views regarding the extent to which the waiver under subsection (b) enhances the opportunity for United States manufacturers, assemblers, developers, and other concerns to enter into or participate in contracts and teaming arrangements with Army industrial facilities under weapon system programs of the Department of Defense.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The Inspector General’s views regarding the extent to which the waiver under subsection (b) enhances the opportunity for Army industrial facilities referred to in section 4543(a) of title 10, United States Code, to enter into or participate in contracts and teaming arrangements with United States manufacturers, assemblers, developers, and other concerns under weapon system programs of the Department of Defense.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The Inspector General’s views regarding the effect of the waiver under subsection (b) on the ability of small businesses to compete for the sale of manufactured articles or services in the United States in competitions to enter into or participate in contracts and teaming arrangements under weapon system programs of the Department of Defense.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Specific examples under the pilot program that support the Inspector General’s views.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Any other information that the Inspector General considers pertinent regarding the effects of the waiver of section 4543(a)(5) of title 10, United States Code, under the pilot program on opportunities for United States manufacturers, assemblers, developers, or other concerns, and for Army industrial facilities, to enter into or participate in contracts and teaming arrangements under weapon system programs of the Department of Defense.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>Any recommendations that the Inspector General considers appropriate regarding continuation or modification of the policy set forth in section 4543(a)(5) of title 10, United States Code.</content></paragraph> </subsection> </section> <section> <num value="142">SEC. 142. </num><heading>NATO JOINT SURVEILLANCE/TARGET ATTACK RADAR SYSTEM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Funding</inline>.—</heading><chapeau>Amounts authorized to be appropriated under this title and title II are available for a NATO alliance ground surveillance capability that is based on the Joint Surveillance/ Target Attack Radar System of the United States, as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Of the amount authorized to be appropriated under section 101(5), $26,153,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Of the amount authorized to be appropriated under section 103(1), $10,000,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Of the amount authorized to be appropriated under section 201(1), $13,500,000.<page identifier="/us/stat/111/1654">111 STAT. 1654</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Of the amount authorized to be appropriated under section 201(3), $26,061,000.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Authority</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Subject to paragraph (2), the Secretary of Defense may utilize authority under section 2350b of title 10, United States Code, for contracting for the purposes of Phase I of a NATO Alliance Ground Surveillance capability that is based on the Joint Surveillance/Target Attack Radar System of the United States, notwithstanding the condition in such section that the authority be utilized for carrying out contracts or obligations incurred under section 27(d) of the Arms Export Control Act (22 U.S.C. 2767(d)).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The authority under paragraph (1) applies during the period that the conclusion of a cooperative project agreement for a NATO Alliance Ground Surveillance capability under section 27(d) of the Arms Export Control Act is pending, as determined by the Secretary of Defense.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Modification of Air Force Aircraft</inline>.—</heading><content>Amounts available pursuant to paragraphs (2) and (4) of subsection (a) may be used to provide for modifying two Air Force Joint Surveillance/Target Attack Radar System production aircraft to have a NATO Alliance Ground Surveillance capability that is based on the Joint Surveillance/Target Attack Radar System of the United States.</content> </subsection> </section> </subtitle> <num value="II">TITLE II—</num><heading>RESEARCH, DEVELOPMENT, TEST, AND EVALUATION</heading> <toc> <referenceItem role="subtitle"><designator>Subtitle A—</designator><label>Authorization of Appropriations</label></referenceItem> <referenceItem role="section"><designator>Sec. 201.</designator> <label>Authorization of appropriations.</label></referenceItem> <referenceItem role="section"><designator>Sec. 202.</designator> <label>Amount for basic and applied research.</label></referenceItem> <referenceItem role="section"><designator>Sec. 203.</designator> <label>Dual-use technology program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 204.</designator> <label>Reduction in amount for Federally Funded Research and Development Centers.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle B—</designator><label>Program Requirements, Restrictions, and Limitations</label></referenceItem> <referenceItem role="section"><designator>Sec. 211.</designator> <label>Manufacturing technology program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 212.</designator> <label>Report on operational field assessments program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 213.</designator> <label>Joint Strike Fighter program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 214.</designator> <label>Kinetic energy tactical anti-satellite technology program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 215.</designator> <label>Micro-satellite technology development program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 216.</designator> <label>High altitude endurance unmanned vehicle program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 217.</designator> <label>F–22 aircraft program.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle C—</designator><label>Ballistic Missile Defense Programs</label></referenceItem> <referenceItem role="section"><designator>Sec. 231.</designator> <label>National Missile Defense Program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 232.</designator> <label>Budgetary treatment of amounts for procurement for ballistic missile defense programs.</label></referenceItem> <referenceItem role="section"><designator>Sec. 233.</designator> <label>Cooperative Ballistic Missile Defense program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 234.</designator> <label>Annual report on threat posed to the United States by weapons of mass destruction, ballistic missiles, and cruise missiles.</label></referenceItem> <referenceItem role="section"><designator>Sec. 235.</designator> <label>Director of Ballistic Missile Defense Organization.</label></referenceItem> <referenceItem role="section"><designator>Sec. 236.</designator> <label>Repeal of required deployment dates for core theater missile defense programs.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle D—</designator><label>Other Matters</label></referenceItem> <referenceItem role="section"><designator>Sec. 241.</designator> <label>Restructuring of National Oceanographic Partnership Program organizations.</label></referenceItem> <referenceItem role="section"><designator>Sec. 242.</designator> <label>Maintenance and repair of real property at Air Force installations.</label></referenceItem> <referenceItem role="section"><designator>Sec. 243.</designator> <label>Expansion of eligibility for the Defense Experimental Program to Stimulate Competitive Research.</label></referenceItem> <referenceItem role="section"><designator>Sec. 244.</designator> <label>Bioassay testing of veterans exposed to ionizing radiation during military service.</label></referenceItem> <referenceItem role="section"><designator>Sec. 245.</designator> <label>Sense of Congress regarding Comanche program.<page identifier="/us/stat/111/1655">111 STAT. 1655</page></label></referenceItem> </toc> <subtitle> <num value="A">Subtitle A—</num><heading>Authorization of Appropriations</heading> <section> <num value="201">SEC. 201. </num><heading>AUTHORIZATION OF APPROPRIATIONS.</heading> <chapeau>Funds are hereby authorized to be appropriated for fiscal year 1998 for the use of the Department of Defense for research, development, test, and evaluation as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>For the Army, $4,633,495,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>For the Navy, $7,774,877,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>For the Air Force, $14,338,934,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><chapeau>For Defense-wide activities, $9,831,646,000, of which—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>$258,183,000 is authorized for the activities of the Director, Test and Evaluation; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>$27,384,000 is authorized for the Director of Operational Test and Evaluation.</content></subparagraph> </paragraph> </section> <section> <num value="202">SEC. 202. </num><heading>AMOUNT FOR BASIC AND APPLIED RESEARCH.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Fiscal Year 1998</inline>.—</heading><content>Of the amounts authorized to be appropriated by section 201, $3,935,390,000 shall be available for basic research and applied research projects.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Basic Research and Applied Research Defined</inline>.—</heading><content>For purposes of this section, the term “basic research and applied research” means work funded in program elements for defense research and development under Department of Defense category 6.1 or 6.2.</content> </subsection> </section> <section> <num value="203">SEC. 203. </num><heading>DUAL-USE SCIENCE AND TECHNOLOGY PROGRAM.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2511">10 USC 2511 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Funding 1998</inline>.—</heading><content>Of the amounts authorized to be appropriated by section 201, $75,000,000 is authorized for dual-use projects.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Goals</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Subject to paragraph (3), it shall be the objective of the Secretary of each military department to obligate for dualuse projects in each fiscal year referred to in paragraph (2), out of the total amount authorized to be appropriated for such fiscal year for the applied research programs of the military department, the percent of such amount that is specified for that fiscal year in paragraph (2).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>The objectives for fiscal years under paragraph (1) are as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>For fiscal year 1998, 5 percent.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>For fiscal year 1999, 7 percent.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>For fiscal year 2000, 10 percent.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>For fiscal year 2001, 15 percent.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><chapeau>The Secretary of Defense may establish for a military department for a fiscal year an objective different from the objective set forth in paragraph (2) if the Secretary—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>determines that compelling national security considerations require the establishment of the different objective; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>notifies Congress of the determination and the reasons for the determination.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Designation of Official for Dual-Use Programs</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of Defense shall designate a senior official in the Office of the Secretary of Defense to carry out responsibilities for dual-use projects under this subsection. The designated official shall report directly to the Under Secretary of Defense for Acquisition and Technology.<page identifier="/us/stat/111/1656">111 STAT. 1656</page></content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The primary responsibilities of the designated official shall include developing policy and overseeing the establishment of, and adherence to, procedures for ensuring that dual-use projects are initiated and administered effectively and that applicable commercial technologies are integrated into current and future military systems.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><chapeau>In carrying out the responsibilities, the designated official shall ensure that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>dual-use projects are consistent with the joint warfighting science and technology plan referred to in section 270 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 10 U.S.C. 2501 note); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the dual-use projects of the military departments and defense agencies of the Department of Defense are coordinated and avoid unnecessary duplication.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Financial Commitment of Non-Federal Government Participants</inline>.—</heading><content>The total amount of funds provided by a military department for a dual-use project entered into by the Secretary of that department shall not exceed 50 percent of the total cost of the project. In the case of a dual-use project initiated after the date of the enactment of this Act, the Secretary may consider in-kind contributions by non-Federal participants only to the extent such contributions constitute 50 percent or less of the share of the project costs by such participants.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Use of Competitive Procedures</inline>.—</heading><content>Funds obligated for a dual-use project may be counted toward meeting an objective under subsection (a) only if the funds are obligated for a contract, grant, cooperative agreement, or other transaction that was entered into through the use of competitive procedures.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Report</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Not later than March 1 of each of 1998, 1999, and 2000, the Secretary of Defense shall submit a report to the congressional defense committees on the progress made by the Department of Defense in meeting the objectives set forth in subsection (b) during the preceding fiscal year.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>The report for a fiscal year shall contain, at a minimum, the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>The aggregate value of all contracts, grants, cooperative agreements, or other transactions entered into during the fiscal year for which funding is counted toward meeting an objective under this section, expressed in relationship to the total amount appropriated for the applied research programs in the Department of Defense for that fiscal year.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>For each military department, the value of all contracts, grants, cooperative agreements, or other transactions entered into during the fiscal year for which funding is counted toward meeting an objective under this section, expressed in relationship to the total amount appropriated for the applied research program of the military department for that fiscal year.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>A summary of the cost-sharing arrangements in dual-use projects that were initiated during the fiscal year and are counted toward reaching an objective under this section.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>A description of the regulations, directives, or other procedures that have been issued by the Secretary of Defense or the Secretary of a military department to increase the percentage of the total value of the dual-use projects undertaken to meet or exceed an objective under this section.<page identifier="/us/stat/111/1657">111 STAT. 1657</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E) </num><content>Any recommended legislation to facilitate achievement of objectives under this section.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num><heading><inline class="smallCaps">Commercial Operations and Support Savings Initiative</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of Defense shall establish a Commercial Operations and Support Savings Initiative (in this subsection referred to as the “Initiative”) to develop commercial products and processes that the military departments can incorporate into operational military systems to reduce costs of operations and support.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Of the amounts authorized to be appropriated by section 201, $50,000,000 is authorized for the Initiative.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><content>Projects and participants in the Initiative shall be selected through the use of competitive procedures.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="4">(4) </num><content>The budget submitted to Congress by the President for fiscal year 1999 and each fiscal year thereafter pursuant to section 1105(a) of title 31, United States Code, shall set forth separately the funding request for the Initiative.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h) </num><heading><inline class="smallCaps">Repeal of Superseded Authority</inline>.—</heading><content>Section 203 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2451) is repealed.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="i">(i) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>In this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The term “applied research program” means a program of a military department which is funded under the 6.2 Research, Development, Test and Evaluation account of that department.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The term “dual-use project” means a project under a program of a military department or a defense agency under which research or development of a dual-use technology is carried out and the costs of which are shared by the Department of Defense and non-Government entities.</content></paragraph> </subsection> </section> <section> <num value="204">SEC. 204. </num><heading>REDUCTION IN AMOUNT FOR FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTERS.</heading> <content>The total of the amounts authorized to be appropriated in section 201 that are available for Federally Funded Research and Development Centers (other than amounts for capital equipment investment) is hereby reduced by $42,000,000.</content> </section> </subtitle> <subtitle> <num value="B">Subtitle B—</num><heading>Program Requirements, Restrictions, and Limitations</heading> <section> <num value="211">SEC. 211. </num><heading>MANUFACTURING TECHNOLOGY PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Participation of Manufacturers</inline>.—</heading><content>Section 2525(c)(2) of title 10, United States Code, is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>In order to promote increased dissemination and use of manufacturing technology throughout the national defense technology and industrial base, the Secretary shall seek, to the maximum extent practicable, the participation of manufacturers of manufacturing equipment in the projects under the program.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Five-Year Plan</inline>.—</heading><content>Section 2525 of such title is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Five-Year Plan</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>The Secretary of Defense shall prepare a five-year plan for the program which establishes—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>the overall manufacturing technology goals, milestones, priorities, and investment strategy for the program; and<page identifier="/us/stat/111/1658">111 STAT. 1658</page></content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>for each of the five fiscal years covered by the plan, the objectives of, and funding for the program by, each military department and each Defense Agency participating in the program.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The plan shall include an assessment of the effectiveness of the program.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>The plan shall be updated annually and shall be included in the budget justification documents submitted in support of the budget of the Department of Defense for a fiscal year (as included in the budget of the President submitted to Congress under section 1105 of title 31).”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2525">10 USC 2525 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Deadline for First Plan</inline>.—</heading><content>The Secretary of Defense shall prepare the first five-year plan required under section 2525(e) of such title, as added by subsection (b), within 60 days after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="212">SEC. 212. </num><heading>REPORT ON OPERATIONAL FIELD ASSESSMENTS PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Finding</inline>.—</heading><content>Congress recognizes the potential value that the Department of Defense Operational Field Assessments program, which is managed by the Director of Operational Test and Evaluation, provides to the commanders of the Unified Combatant Commands with respect to assessment of the effectiveness of nearterm operational concepts and critical operational issues in quickresponse operational tests and evaluations.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than March 30, 1998, the Secretary of Defense shall submit to the congressional defense committees a report on the Operational Field Assessments program.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Content of Report</inline>.—</heading><chapeau>The report shall contain the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>A review of the Operational Field Assessments program which describes the goals and objectives of the program, assessments by the program conducted as of the date of the submission of the report, and the results of those assessments.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>A description of the current management and support structure of the program within the Department of Defense, including a description of how program responsibilities are assigned within the Office of the Secretary of Defense and a description of the roles of the Joint Staff, the commanders of the Unified Combatant Commands, and the military departments.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>An analysis of and recommendations regarding the management structure required within the Office of the Secretary of Defense to ensure that the program is responsive to the mission needs of the commanders of the Unified Combatant Commands.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The funding plan for the program.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>A description of future plans for the program and funding requirements for those plans.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>Recommendations regarding additional statutory authority that may be required for the program.</content></paragraph> </subsection> </section> <section> <num value="213">SEC. 213. </num><heading>JOINT STRIKE FIGHTER PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than February 15, 1998, the Secretary of Defense shall submit to the congressional defense committees a report on the options for the sequence in which the variants of the joint strike fighter are to be produced and fielded.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Content of Report</inline>.—</heading><chapeau>The report shall contain the following:<page identifier="/us/stat/111/1659">111 STAT. 1659</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>A review of the plan for production under the Joint Strike Fighter Program that was used by the Department of Defense for developing the funding estimates for the fiscal year 1999 budget request for the Department of Defense.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>An estimate of the costs, and an analysis of the costs and benefits, of producing the joint strike fighter variants in a sequence that provides for fielding of the naval variant of the aircraft first.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>A comparison of the costs and benefits of the various options for the sequence for fielding the variants of the joint strike fighter that the Secretary of Defense considers likely to be the options from among which a sequence for fielding is selected, including a discussion of the effects that selection of each such option would have on the costs and rates of production of the units of F/A–18E/F and F–22 aircraft that are in production when the Joint Strike Fighter Program proceeds into production.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>A certification that the Joint Strike Fighter Program contains sufficient funding to carry out an alternate engine development program that includes flight qualification of an alternate engine in a joint strike fighter airframe.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><content>Limitation on Use of Funds Pending Submission of Report.—Not more than 90 percent of the total amount authorized to be appropriated under this Act for the Joint Strike Fighter Program may be obligated until the date that is 30 days after the date on which the congressional defense committees receive the report required under this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Fiscal Year 1998 Budget Defined</inline>.—</heading><content>In this section, the term “fiscal year 1999 budget request for the Department of Defense” means the budget estimates for the Department of Defense for fiscal year 1999 that were submitted to Congress by the Secretary of Defense in connection with the submission of the budget for fiscal year 1998 to Congress under section 1105 of title 31, United States Code.</content> </subsection> </section> <section> <num value="214">SEC. 214. </num><heading>KINETIC ENERGY TACTICAL ANTI-SATELLITE TECHNOLOGY PROGRAM.</heading> <content>Of the funds authorized to be appropriated under section 201(4), $37,500,000 shall be available for the kinetic energy tactical antisatellite technology program.</content> </section> <section> <num value="215">SEC. 215. </num><heading>MICRO-SATELLITE TECHNOLOGY DEVELOPMENT PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Establishment of Micro-Satellite Technology Development Program</inline>.—</heading><content>The Secretary of Defense shall restructure the Clementine 2 micro-satellite development program into a microsatellite technology development program that supports a range of space mission areas.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than February 15, 1998, the Secretary of Defense shall submit to the congressional defense committees a report describing the structure and objectives of the micro-satellite technology development program established under subsection (a) and how the program can benefit existing or future space systems or architectures.</content> </subsection> </section> <section> <num value="216">SEC. 216. </num><heading>HIGH ALTITUDE ENDURANCE UNMANNED VEHICLE PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Limitation on Total Cost of Advanced Concept Technology Demonstration</inline>.—</heading><content>The total amount obligated or expended <page identifier="/us/stat/111/1660">111 STAT. 1660</page>for advanced concept technology demonstration under the High Altitude Endurance Unmanned Vehicle Program for fiscal year 1998 through fiscal year 2003 may not exceed $476,826,000.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Limitation on Procurement</inline>.—</heading><content>The Secretary of Defense may not procure any high altitude endurance unmanned vehicles, other than the currently planned vehicles, until the completion of the testing identified in phase II of the test and demonstration plan for the advanced concept technology demonstration for the vehicles.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Limitation on Proceeding</inline>.—</heading><chapeau>The High Altitude Endurance Unmanned Vehicle Program may not proceed beyond advanced concept technology demonstration until the Secretary of Defense—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>provides to Congress a firm unit cost (referred to in this section as the “fly away cost”) for each of the currently planned vehicles; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>certifies to Congress the military suitability and the worth of each such vehicle.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">GAO Review</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Comptroller General shall review the High Altitude Endurance Unmanned Vehicle Program for purposes of determining whether the average fly away cost for each vehicle is within the cost goal under the program of $10,000,000.</content> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The Secretary of Defense and the prime contractors under the High Altitude Endurance Unmanned Vehicle Program shall provide the Comptroller General with such information on the program as the Comptroller considers necessary to make the determination under paragraph (1).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Currently Planned Vehicles</inline>.—</heading><content>In this section, the term “currently planned vehicles” means the four Dark Star air vehicles and the five Global Hawk air vehicles that have been approved for procurement by the Secretary of Defense as of the elate of the enactment of this Act.</content> </subsection> </section> <section> <num value="217">SEC. 217. </num><heading>F–22 AIRCRAFT PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Limitation on Total Cost of Engineering and Manufacturing Development</inline>.—</heading><content>The total amount obligated or expended for engineering and manufacturing development under the F–22 aircraft program may not exceed $18,688,000,000.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Limitation on Total Cost of Production</inline>.—</heading><content>The total amount obligated or expended for the F–22 production program may not exceed $43,400,000,000.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Adjustment of Limitation Amounts</inline>.—</heading><chapeau>The Secretary of the Air Force shall adjust the amounts of the limitations set forth in subsections (a) and (b) by the following amounts:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The amounts of increases or decreases in costs attributable to economic inflation after September 30, 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The amounts of increases or decreases in costs attributable to compliance with changes in Federal, State, or local laws enacted after September 30, 1997.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> <heading><inline class="smallCaps">Annual GAO Review</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Not later than March 15 of each year, the Comptroller General shall review the F–22 aircraft program and submit to Congress a report on the results of the review. The Comptroller General shall also submit to Congress for each report a certification regarding whether the Comptroller General has had access to sufficient information to make informed judgments on the matters covered by the report.</content> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>The report submitted on the program each year shall include the following:<page identifier="/us/stat/111/1661">111 STAT. 1661</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>The extent to which engineering and manufacturing development under the program is meeting the goals established for engineering and manufacturing development under the program, including the performance, cost, and schedule goals.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>The status of modifications expected to have a significant effect on cost or performance of F–22 aircraft.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>The plan for engineering and manufacturing development (leading to production) under the program for the fiscal year that begins in the following year.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>A conclusion regarding whether the plan referred to in subparagraph (C) is consistent with the limitation in subsection (a).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E) </num><content>A conclusion regarding whether engineering and manufacturing development (leading to production) under the program is likely to be completed at a total cost not in excess of the amount specified in subsection (a).</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><content>The Comptroller General shall submit the first report under this subsection not later than March 15, 1998. No report is required under this subsection after engineering and manufacturing development under the program has been completed.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Requirement To Support Annual GAO Review</inline>.—</heading><content>The Secretary of Defense and the prime contractors under the F–22 aircraft program shall provide the Comptroller General with such information on the program as the Comptroller General considers necessary to carry out the responsibilities under subsection (d).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Limitation on Obligation of Funds</inline>.—</heading><chapeau>Of the total amount authorized to be appropriated for the F–22 aircraft program for a fiscal year, not more than 90 percent of the amount may be obligated until the Comptroller General submits to Congress—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the report required to be submitted in that fiscal year under subsection (d); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>a certification regarding whether the Comptroller General has had access to sufficient information to make informed judgments on the matters covered by the report.</content></paragraph> </subsection> </section> </subtitle> <subtitle> <num value="C">Subtitle C—</num><heading>Ballistic Missile Defense Programs</heading> <section> <num value="231">SEC. 231. </num><heading>NATIONAL MISSILE DEFENSE PROGRAM.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2431">10 USC 2431 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Program Structure</inline>.—</heading><content>To preserve the option of achieving an initial operational capability in fiscal year 2003, the Secretary of Defense shall ensure that the National Missile Defense Program is structured and programmed for funding so as to support a test, in fiscal year 1999, of an integrated national missile defense system that is representative of the national missile defense system architecture that could achieve initial operational capability in fiscal year 2003.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Elements of NMD System</inline>.—</heading><chapeau>The national missile defense system architecture specified in subsection (a) shall consist of the following elements:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>An interceptor system that optimizes defensive coverage of the continental United States, Alaska, and Hawaii against limited ballistic missile attack (whether accidental, unauthorized, or deliberate).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Ground-based radars.<page identifier="/us/stat/111/1662">111 STAT. 1662</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Space-based sensors.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Battle management, command, control, and communications (BM/C<sup>3</sup>).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Plan for NMD System Development and Deployment</inline>.—</heading><chapeau>Not later than February 15, 1998, the Secretary of Defense shall submit to the congressional defense committees a plan for the development and deployment of a national missile defense system that could achieve initial operational capability in fiscal year 2003. The plan shall include the following matters:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>A detailed description of the system architecture selected for development.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>A discussion of the justification for the selection of that particular architecture.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The Secretary’s estimate of the amounts of the appropriations that would be necessary for research, development, test, evaluation, and for procurement for each of fiscal years 1999 through 2003 in order to achieve an initial operational capability of the system architecture in fiscal year 2003.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><chapeau>For each activity necessary for the development and deployment of the national missile defense system architecture selected by the Secretary that would at some point conflict with the terms of the ABM Treaty, if any—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>a description of the activity;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>a description of the point at which the activity would conflict with the terms of the ABM Treaty;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>the legal analysis justifying the Secretary’s determination regarding the point at which the activity would conflict with the terms of the ABM Treaty; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>an estimate of the time at which such point would be reached in order to achieve a test of an integrated missile defense system in fiscal year 1999 and initial operational capability of such a system in fiscal year 2003.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Funding for Fiscal Year 1998</inline>.—</heading><content>Of the funds authorized to be appropriated under section 201(4), $978,091,000 shall be available for the National Missile Defense Program.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">ABM Treaty Defined</inline>.—</heading><content>In this section, the term “ABM Treaty” means the Treaty Between the United States of America and the Union of Soviet Socialist Republics on the Limitation of Anti-Ballistic Missile Systems, signed at Moscow on May 26, 1972, and includes the Protocol to that treaty, signed at Moscow on July 3, 1974.</content> </subsection> </section> <section> <num value="232">SEC. 232. </num><heading>BUDGETARY TREATMENT OF AMOUNTS FOR PROCUREMENT FOR BALLISTIC MISSILE DEFENSE PROGRAMS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Requirement for Inclusion in Budget of BMDO</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Chapter 9 of title 10, United States Code, is amended by inserting after section 222 the following new section: <quotedContent> <section> <num value="224">“§ 224. </num><heading>Ballistic missile defense programs: display of amounts for procurement</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Requirement</inline>.—</heading><content>Any amount in the budget submitted to Congress under section 1105 of title 31 for any fiscal year for procurement for a Department of Defense missile defense program described in subsection (b) shall be set forth under the account of the Department of Defense for Defense-wide procurement and, within that account, under the subaccount (or other budget activity level) for the Ballistic Missile Defense Organization.<page identifier="/us/stat/111/1663">111 STAT. 1663</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Covered Programs</inline>.—</heading><chapeau>Subsection (a) applies to the following missile defense programs of the Department of Defense:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>The National Missile Defense Program.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>Any system that is part of the core theater missile defense program.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>Any other ballistic missile defense program that enters production after the date of the enactment of this section and for which research, development, test, and evaluation was carried out by the Ballistic Missile Defense Organization.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Core Theater Ballistic Missile Defense Program</inline>.—</heading><content>For purposes of this section, the core theater missile defense program consists of the systems specified in section 234 of the Ballistic Missile Defense Act of 1995 (10 U.S.C. 2431 note).”.</content> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 222 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“224.</designator> <label>Ballistic missile defense programs: display of amounts for procurement.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Fiscal Year 1998 Funds</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of Defense shall transfer to appropriations available to the Ballistic Missile Defense Organization for procurement for fiscal year 1998 any amounts that are appropriated for procurement for that fiscal year for any of the Armed Forces by reason of the transference of certain programs to accounts of the Army, Navy, Air Force, and Marine Corps pursuant to Program Budget Decision 224C3, signed by the Under Secretary of Defense (Comptroller) on December 23, 1996.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Any transfer pursuant to paragraph (1) shall not be counted for purposes of section 1001.</content></paragraph> </subsection> </section> <section> <num value="233">SEC. 233. </num><heading>COOPERATIVE BALLISTIC MISSILE DEFENSE PROGRAM.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s221">10 USC 221 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Requirement for New Program Element</inline>.—</heading><content>The Secretary of Defense shall establish a program element for the Ballistic Missile Defense Organization, to be referred to as the “Cooperative Ballistic Missile Defense Program”, to support technical and analytical cooperative efforts between the United States and other nations that contribute to United States ballistic missile defense capabilities. Except as provided in subsection (b), all international cooperative ballistic missile defense programs of the Department of Defense shall be budgeted and administered through that program element.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Authority for Exceptions</inline>.—</heading><content>The Secretary of Defense may exclude from the program element established pursuant to subsection (a) any international cooperative ballistic missile defense program of the Department of Defense that after the date of the enactment of this Act is designated by the Secretary of Defense (pursuant to applicable Department of Defense acquisition regulations and policy) to be managed as a separate acquisition program.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Relationship to Other Program Elements</inline>.—</heading><content>The program element established pursuant to subsection (a) is in addition to the program elements for activities of the Ballistic Missile Defense Organization required under section 251 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104106; 110 Stat. 233; 10 U.S.C. 221 note).<page identifier="/us/stat/111/1664">111 STAT. 1664</page></content> </subsection> </section> <section> <num value="234">SEC. 234. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t50/s2367">50 USC 2367</ref>.</p></sidenote> <heading>ANNUAL REPORT ON THREAT POSED TO THE UNITED STATES BY WEAPONS OF MASS DESTRUCTION, BALLISTIC MISSILES, AND CRUISE MISSILES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Annual Report</inline>.—</heading><chapeau>The Secretary of Defense shall submit to Congress by January 30 of each year a report on the threats posed to the United States and allies of the United States—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by weapons of mass destruction, ballistic missiles, and cruise missiles; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by the proliferation of weapons of mass destruction, ballistic missiles, and cruise missiles.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Consultation</inline>.—</heading><content>Each report submitted under subsection (a) shall be prepared in consultation with the Director of Central Intelligence.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Matters To Be Included</inline>.—</heading><chapeau>Each report submitted under subsection (a) shall include the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Identification of each foreign country and non-State organization that possesses weapons of mass destruction, ballistic missiles, or cruise missiles, and a description of such weapons and missiles with respect to each such foreign country and non-State organization.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>A description of the means by which any foreign country and non-State organization that has achieved capability with respect to weapons of mass destruction, ballistic missiles, or cruise missiles has achieved that capability, including a description of the international network of foreign countries and private entities that provide assistance to foreign countries and non-State organizations in achieving that capability.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>An examination of the doctrines that guide the use of weapons of mass destruction in each foreign country that possesses such weapons.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>An examination of the existence and implementation of the control mechanisms that exist with respect to nuclear weapons in each foreign country that possesses such weapons.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Identification of each foreign country and non-State organization that seeks to acquire or develop (indigenously or with foreign assistance) weapons of mass destruction, ballistic missiles, or cruise missiles, and a description of such weapons and missiles with respect to each such foreign country and non-State organization.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>An assessment of various possible timelines for the achievement by foreign countries and non-State organizations of capability with respect to weapons of mass destruction, ballistic missiles, and cruise missiles, taking into account the probability of whether the Russian Federation and the People’s Republic of China will comply with the Missile Technology Control Regime, the potential availability of assistance from foreign technical specialists, and the potential for independent sales by foreign private entities without authorization from their national governments.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>For each foreign country or non-State organization that has not achieved the capability to target the United States or its territories with weapons of mass destruction, ballistic missiles, or cruise missiles as of the date of the enactment of this Act, an estimate of how far in advance the United States is likely to be warned before such foreign country or non-State organization achieves that capability.<page identifier="/us/stat/111/1665">111 STAT. 1665</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>For each foreign country or non-State organization that has not achieved the capability to target members of the United States Armed Forces deployed abroad with weapons of mass destruction, ballistic missiles, or cruise missiles as of the date of the enactment of this Act, an estimate of how far in advance the United States is likely to be warned before such foreign country or non-State organization achieves that capability.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Classification</inline>.—</heading><content>Each report under subsection (a) shall be submitted in classified and unclassified form.</content> </subsection> </section> <section> <num value="235">SEC. 235. </num><heading>DIRECTOR OF BALLISTIC MISSILE DEFENSE ORGANIZATION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>Subchapter II of chapter 8 of title 10, United States Code, is amended by adding at the end the following new section: <quotedContent> <section> <num value="203">“§ 203. </num><heading>Director of Ballistic Missile Defense Organization</heading> <content>“If an officer of the armed forces on active duty is appointed to the position of Director of the Ballistic Missile Defense Organization, the position shall be treated as having been designated by the President as a position of importance and responsibility for purposes of section 601 of this title and shall carry the grade of lieutenant general or general or, in the case of an officer of the Navy, vice admiral or admiral.”.</content> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections at the beginning of such subchapter is amended by adding at the end the following new item: <quotedContent> <referenceItem role="section"><designator>“203.</designator> <label>Director of Ballistic Missile Defense Organization.”.</label></referenceItem> </quotedContent> </content></subsection> </section> <section> <num value="236">SEC. 236. </num><heading>REPEAL OF REQUIRED DEPLOYMENT DATES FOR CORE THEATER MISSILE DEFENSE PROGRAMS.</heading> <chapeau>Section 234(a) of the Ballistic Missile Defense Act of 1995 (subtitle C of title II of Public Law 104–106; 110 Stat. 229; 10 U.S.C. 2431 note) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in the matter preceding paragraph (1), by striking out “, to be carried out so as to achieve the specified capabilities”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in paragraph (1), by striking out “, with a first unit equipped (FUE) during fiscal year 1998”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>in paragraph (2), by striking out “Navy Lower Tier (Area) system” and all that follows through “fiscal year 1999” and inserting in lieu thereof “Navy Area Defense system”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>in paragraph (3), by striking out “, with a” and all that follows through “fiscal year 2000”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>in paragraph (4), by striking out “Navy Upper Tier” and all that follows through “fiscal year 2001” and inserting in lieu thereof “Navy Theater Wide system”.</content></paragraph> </section> </subtitle> <subtitle> <num value="D">Subtitle D—</num><heading>Other Matters</heading> <section> <num value="241">SEC. 241. </num><heading>RESTRUCTURING OF NATIONAL OCEANOGRAPHIC PARTNERSHIP PROGRAM ORGANIZATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">National Ocean Research Leadership Council</inline>.—</heading><chapeau>Section 7902 of title 10, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>in subsection (b)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking out paragraphs (11), (14), (15), (16), and (17); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by redesignating paragraphs (12) and (13) as paragraphs (11) and (12), respectively;<page identifier="/us/stat/111/1666">111 STAT. 1666</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking out subsection (d); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by redesignating subsections (e), (f), (g), (h), and (i) as subsections (d), (e), (f), (g), and (h), respectively.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Ocean Research Advisory Panel</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The text of section 7903 of such title is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Establishment</inline>.—</heading><chapeau>The Council shall establish an Ocean Research Advisory Panel consisting of not less than 10 and not more than 18 members appointed by the chairman, including the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>One member who will represent the National Academy of Sciences.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>One member who will represent the National Academy of Engineering.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>One member who will represent the Institute of Medicine.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>Members selected from among individuals who will represent the views of ocean industries, State governments, academia, and such other views as the chairman considers appropriate.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><content>Members selected from among individuals eminent in the fields of marine science or marine policy, or related fields.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Responsibilities</inline>.—</heading><chapeau>The Council shall assign the following responsibilities to the Advisory Panel:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>To advise the Council on policies and procedures to implement the National Oceanographic Partnership Program.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>To advise the Council on selection of partnership projects and allocation of funds for partnership projects for implementation under the program.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>To advise the Council on matters relating to national oceanographic data requirements.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>Any additional responsibilities that the Council considers appropriate.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Funding</inline>.—</heading><content>The Secretary of the Navy annually shall make funds available to support the activities of the Advisory Panel.”.</content> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s7903">10 USC 7903 note</ref>.</p></sidenote> <content>Section 282(c) of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2473) is amended by striking out “January 1, 1997” and inserting in lieu thereof “January 1, 1998”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><chapeau>Section 282 of the National Defense Authorization Act for Fiscal Year 1997 is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s7902">10 USC 7902 note</ref>.</p></sidenote><content>by striking out subsection (b); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s7903">10 USC 7903 note</ref>, 7902 note.</p></sidenote><content>by redesignating subsections (c), (d), (e), and (f) as subsections (b), (c), (d), and (e), respectively.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s7902">10 USC 7902 note</ref>.</p></sidenote><heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by subsections (a) and (b) shall be effective as of September 23, 1996, as if included in section 282 of Public Law 104–201.</content> </subsection> </section> <section> <num value="242">SEC. 242. </num><heading>MAINTENANCE AND REPAIR OF REAL PROPERTY AT AIR FORCE INSTALLATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>Chapter 949 of title 10, United States Code, is amended by adding at the end the following new section: <quotedContent> <section> <num value="9782">“§ 9782. </num><heading>Maintenance and repair of real property</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Allocation of Funds</inline>.—</heading><content>The Secretary of the Air Force shall allocate funds authorized to be appropriated by a provision described in subsection (c) and a provision described in subsection <page identifier="/us/stat/111/1667">111 STAT. 1667</page>(d) for maintenance and repair of real property at military installations of the Department of the Air Force without regard to whether the installation is supported with funds authorized by a provision described in subsection (c) or (d).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Mixing of Funds Prohibited on Individual Projects</inline>.—</heading><content>The Secretary of the Air Force may not combine funds authorized to be appropriated by a provision described in subsection (c) and funds authorized to be appropriated by a provision described in subsection (d) for an individual project for maintenance and repair of real property at a military installation of the Department of the Air Force.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Research, Development, Test, and Evaluation Funds</inline>.—</heading><content>The provision described in this subsection is a provision of a national defense authorization Act that authorizes funds to be appropriated for a fiscal year to the Air Force for research, development, test, and evaluation.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Operation and Maintenance Funds</inline>.—</heading><content>The provision described in this subsection is a provision of a national defense authorization Act that authorizes funds to be appropriated for a fiscal year to the Air Force for operation and maintenance.”.</content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections at the beginning of such chapter is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“9782.</designator> <label>Maintenance and repair of real property.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="243">SEC. 243. </num><heading>EXPANSION OF ELIGIBILITY FOR THE DEFENSE EXPERIMENTAL PROGRAM TO STIMULATE COMPETITIVE RESEARCH.</heading> <content>Section 257 of the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103–337; U.S.C. 2358 note) is amended<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2358">10 USC 2358 note</ref>.</p></sidenote> by adding at the end the following new subsection: note <quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f) </num><heading><inline class="smallCaps">State Defined</inline>.—</heading><content>In this section, the term ‘State’ means a State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin Islands, American Samoa, and the Commonwealth of the Northern Mariana Islands”.</content> </subsection> </quotedContent> </content></section> <section> <num value="244">SEC. 244. </num><heading>BIOASSAY TESTING OF VETERANS EXPOSED TO IONIZING RADIATION DURING MILITARY SERVICE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Nuclear Test Personnel Program</inline>.—</heading><content>Of the amount provided in section 201(4), $300,000 shall be available for testing described in subsection (b) in support of the Nuclear Test Personnel Program conducted by the Defense Special Weapons Agency.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Covered Testing</inline>.—</heading><content>Subsection (a) applies to the third<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> phase of bioassay testing of individuals who are radiation-exposed veterans (as defined in section 1112(c)(3)(A) of title 38, United States Code) who participated in radiation-risk activities (as defined in section 1112(c)(3)(B) of such title).</content> </subsection> </section> <section> <num value="245">SEC. 245. </num><heading>SENSE OF CONGRESS REGARDING COMANCHE PROGRAM.</heading> <chapeau>It is the sense of Congress that the Department of Defense should—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>evaluate technology transfer and acquisition initiatives within the Army Comanche program that nave the potential to increase the efficiency or reduce the risk of the Comanche program; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>include adequate funding for those initiatives that the Department deems to be meritorious in the future-years defense <page identifier="/us/stat/111/1668">111 STAT. 1668</page>program (as submitted to Congress under section 221 of title 10, United States Code).</content></paragraph> </section> </subtitle> <num value="III">TITLE III—</num><heading>OPERATION AND MAINTENANCE</heading> <toc> <referenceItem role="subtitle"><designator>Subtitle A—</designator><label>Authorization of Appropriations</label></referenceItem> <referenceItem role="section"><designator>Sec. 301.</designator> <label>Operation and maintenance funding.</label></referenceItem> <referenceItem role="section"><designator>Sec. 302.</designator> <label>Working capital funds.</label></referenceItem> <referenceItem role="section"><designator>Sec. 303.</designator> <label>Armed Forces Retirement Home.</label></referenceItem> <referenceItem role="section"><designator>Sec. 304.</designator> <label>Fisher House Trust Funds.</label></referenceItem> <referenceItem role="section"><designator>Sec. 305.</designator> <label>Transfer from National Defense Stockpile Transaction Fund.</label></referenceItem> <referenceItem role="section"><designator>Sec. 306.</designator> <label>Refurbishment of M1–A1 tanks.</label></referenceItem> <referenceItem role="section"><designator>Sec. 307.</designator> <label>Operation of prepositioned fleet, National Training Center, Fort Irwin, California.</label></referenceItem> <referenceItem role="section"><designator>Sec. 308.</designator> <label>Refurbishment and installation of air search radar.</label></referenceItem> <referenceItem role="section"><designator>Sec. 309.</designator> <label>Contracted training flight services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 310.</designator> <label>Procurement technical assistance programs.</label></referenceItem> <referenceItem role="section"><designator>Sec. 311.</designator> <label>Operation of Fort Chaffee, Arkansas.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle B—</designator><label>Military Readiness Issues</label></referenceItem> <referenceItem role="section"><designator>Sec. 321.</designator> <label>Monthly reports on allocation of funds within operation and maintenance budget subactivities.</label></referenceItem> <referenceItem role="section"><designator>Sec. 322.</designator> <label>Expansion of scope of quarterly readiness reports.</label></referenceItem> <referenceItem role="section"><designator>Sec. 323.</designator> <label>Semiannual reports on transfers from high-priority readiness appropriations.</label></referenceItem> <referenceItem role="section"><designator>Sec. 324.</designator> <label>Annual report on aircraft inventory.</label></referenceItem> <referenceItem role="section"><designator>Sec. 325.</designator> <label>Administrative actions adversely affecting military training or other readiness activities.</label></referenceItem> <referenceItem role="section"><designator>Sec. 326.</designator> <label>Common measurement of operations tempo and personnel tempo.</label></referenceItem> <referenceItem role="section"><designator>Sec. 327.</designator> <label>Inclusion of Air Force depot maintenance as operation and maintenance budget line items.</label></referenceItem> <referenceItem role="section"><designator>Sec. 328.</designator> <label>Prohibition of implementation of tiered readiness system.</label></referenceItem> <referenceItem role="section"><designator>Sec. 329.</designator> <label>Report on military readiness requirements of the Armed Forces.</label></referenceItem> <referenceItem role="section"><designator>Sec. 330.</designator> <label>Assessment of cyclical readiness posture of the Armed Forces.</label></referenceItem> <referenceItem role="section"><designator>Sec. 331.</designator> <label>Report on military exercises conducted under certain training exercises programs.</label></referenceItem> <referenceItem role="section"><designator>Sec. 332.</designator> <label>Report on overseas deployments.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle C—</designator><label>Environmental Provisions</label></referenceItem> <referenceItem role="section"><designator>Sec. 341.</designator> <label>Revision of membership terms for Strategic Environmental Research and Development Program Scientific Advisory Board.</label></referenceItem> <referenceItem role="section"><designator>Sec. 342.</designator> <label>Amendments to authority to enter into agreements with other agencies in support of environmental technology certification.</label></referenceItem> <referenceItem role="section"><designator>Sec. 343.</designator> <label>Modifications of authority to store and dispose of nondefense toxic and hazardous materials.</label></referenceItem> <referenceItem role="section"><designator>Sec. 344.</designator> <label>Annual report on payments and activities in response to fines and penalties assessed under environmental laws.</label></referenceItem> <referenceItem role="section"><designator>Sec. 345.</designator> <label>Annual report on environmental activities of the Department of Defense overseas.</label></referenceItem> <referenceItem role="section"><designator>Sec. 346.</designator> <label>Review of existing environmental consequences of the presence of the Armed Forces in Bermuda.</label></referenceItem> <referenceItem role="section"><designator>Sec. 347.</designator> <label>Sense of Congress on deployment of United States Armed Forces abroad for environmental preservation activities.</label></referenceItem> <referenceItem role="section"><designator>Sec. 348.</designator> <label>Recovery and sharing of costs of environmental restoration at Department of Defense sites.</label></referenceItem> <referenceItem role="section"><designator>Sec. 349.</designator> <label>Partnerships for investment in innovative environmental technologies.</label></referenceItem> <referenceItem role="section"><designator>Sec. 350.</designator> <label>Procurement of recycled copier paper.</label></referenceItem> <referenceItem role="section"><designator>Sec. 351.</designator> <label>Pilot program for the sale of air pollution emission reduction incentives.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle D—</designator><label>Depot-Level Activities</label></referenceItem> <referenceItem role="section"><designator>Sec. 355.</designator> <label>Definition of depot-level maintenance and repair.</label></referenceItem> <referenceItem role="section"><designator>Sec. 356.</designator> <label>Core logistics capabilities of Department of Defense.</label></referenceItem> <referenceItem role="section"><designator>Sec. 357.</designator> <label>Increase in percentage of depot-level maintenance and repair that may be contracted for performance by non-Government personnel.</label></referenceItem> <referenceItem role="section"><designator>Sec. 358.</designator> <label>Annual report on depot-level maintenance and repair.</label></referenceItem> <referenceItem role="section"><designator>Sec. 359.</designator> <label>Requirement for use of competitive procedures in contracting for performance of depot-level maintenance and repair workloads formerly performed at closed or realigned military installations.<page identifier="/us/stat/111/1669">111 STAT. 1669</page></label></referenceItem> <referenceItem role="section"><designator>Sec. 360.</designator> <label>Clarification of prohibition on management of depot employees by constraints on personnel levels.</label></referenceItem> <referenceItem role="section"><designator>Sec. 361.</designator> <label>Centers of Industrial and Technical Excellence.</label></referenceItem> <referenceItem role="section"><designator>Sec. 362.</designator> <label>Extension of authority for aviation depots and naval shipyards to engage in defense-related production and services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 363.</designator> <label>Repeal of a conditional repeal of certain depot-level maintenance and repair laws and a related reporting requirement.</label></referenceItem> <referenceItem role="section"><designator>Sec. 364.</designator> <label>Personnel reductions, Army depots participating in Army Workload and Performance System.</label></referenceItem> <referenceItem role="section"><designator>Sec. 365.</designator> <label>Report on allocation of core logistics activities among Department of Defense facilities and private sector facilities.</label></referenceItem> <referenceItem role="section"><designator>Sec. 366.</designator> <label>Review of use of temporary duty assignments for ship repair and maintenance.</label></referenceItem> <referenceItem role="section"><designator>Sec. 367.</designator> <label>Sense of Congress regarding realignment of performance of ground communication-electronic workload.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle E—</designator><label>Commissaries and Nonappropriated Fund Instrumentalities</label></referenceItem> <referenceItem role="section"><designator>Sec. 371.</designator> <label>Reorganization of laws regarding commissaries and exchanges and other morale, welfare, and recreation activities.</label></referenceItem> <referenceItem role="section"><designator>Sec. 372.</designator> <label>Merchandise and pricing requirements for commissary stores.</label></referenceItem> <referenceItem role="section"><designator>Sec. 373.</designator> <label>Limitation on noncompetitive procurement of brand-name commercial items for resale in commissary stores.</label></referenceItem> <referenceItem role="section"><designator>Sec. 374.</designator> <label>Treatment of revenues derived from commissary store activities.</label></referenceItem> <referenceItem role="section"><designator>Sec. 375.</designator> <label>Maintenance, repair, and renovation of Armed Forces Recreation Center, Europe.</label></referenceItem> <referenceItem role="section"><designator>Sec. 376.</designator> <label>Plan for use of public and private partnerships to benefit morale, welfare, and recreation activities.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle F—</designator><label>Other Matters</label></referenceItem> <referenceItem role="section"><designator>Sec. 381.</designator> <label>Assistance to local educational agencies that benefit dependents of members of the Armed Forces and Department of Defense civilian employees.</label></referenceItem> <referenceItem role="section"><designator>Sec. 382.</designator> <label>Center for Excellence in Disaster Management and Humanitarian Assistance.</label></referenceItem> <referenceItem role="section"><designator>Sec. 383.</designator> <label>Applicability of Federal printing requirements to Defense Automated Pointing Service.</label></referenceItem> <referenceItem role="section"><designator>Sec. 384.</designator> <label>Study and notification requirements for conversion of commercial and industrial type functions to contractor performance.</label></referenceItem> <referenceItem role="section"><designator>Sec. 385.</designator> <label>Collection and retention of cost information data on converted services and functions.</label></referenceItem> <referenceItem role="section"><designator>Sec. 386.</designator> <label>Financial assistance to support additional duties assigned to Army National Guard.</label></referenceItem> <referenceItem role="section"><designator>Sec. 387.</designator> <label>Competitive procurement of printing and duplication services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 388.</designator> <label>Contmuation and expansion of demonstration program to identify overpayments made to vendors.</label></referenceItem> <referenceItem role="section"><designator>Sec. 389.</designator> <label>Development of standard forms regarding performance work statement and request for proposal for conversion of certain operational functions of military installations.</label></referenceItem> <referenceItem role="section"><designator>Sec. 390.</designator> <label>Base operations support for military installations on Guam.</label></referenceItem> <referenceItem role="section"><designator>Sec. 391.</designator> <label>Warranty claims recovery pilot program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 392.</designator> <label>Program to investigate fraud, waste, and abuse within Department of Defense.</label></referenceItem> <referenceItem role="section"><designator>Sec. 393.</designator> <label>Multitechnology automated reader card demonstration program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 394.</designator> <label>Reduction in overhead costs of Inventory Control Points.</label></referenceItem> <referenceItem role="section"><designator>Sec. 395.</designator> <label>Inventory management.</label></referenceItem> </toc> <subtitle> <num value="A">Subtitle A—</num><heading>Authorization of Appropriations</heading> <section> <num value="301">SEC. 301. </num><heading>OPERATION AND MAINTENANCE FUNDING.</heading> <chapeau>Funds are hereby authorized to be appropriated for fiscal year 1998 for the use of the Armed Forces and other activities and agencies of the Department of Defense for expenses, not otherwise provided for, for operation and maintenance, in amounts as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>For the Army, $17,174,589,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>For the Navy, $21,947,656,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>For the Marine Corps, $2,424,645,000.<page identifier="/us/stat/111/1670">111 STAT. 1670</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>For the Air Force, $19,172,985,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>For Defense-wide activities, $10,242,607,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>For the Army Reserve, $1,207,981,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>For the Naval Reserve, $846,711,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>For the Marine Corps Reserve, $116,366,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><content>For the Air Force Reserve, $1,631,200,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10) </num><content>For the Army National Guard, $2,311,432,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="11">(11) </num><content>For the Air National Guard, $2,999,782,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="12">(12) </num><content>For the Defense Inspector General, $136,580,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="13">(13) </num><content>For the United States Court of Appeals for the Armed Forces, $6,952,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="14">(14) </num><content>For Environmental Restoration, Army, $375,337,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="15">(15) </num><content>For Environmental Restoration, Navy, $275,500,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="16">(16) </num><content>For Environmental Restoration, Air Force, $376,900,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="17">(17) </num><content>For Environmental Restoration, Defense-wide, $26,900,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="18">(18) </num><content>For Environmental Restoration, Formerly Used Defense Sites, $202,300,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="19">(19) </num><content>For Overseas Humanitarian, Disaster, and Civic Aid programs, $47,130,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="20">(20) </num><content>For Drug Interdiction and Counter-drug Activities, Defense-wide, $666,882,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="21">(21) </num><content>For the Kaho’olawe Island Conveyance, Remediation, and Environmental Restoration Trust Fund, $10,000,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="22">(22) </num><content>For Medical Programs, Defense, $9,957,782,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="23">(23) </num><content>For Cooperative Threat Reduction programs, $382,200,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="24">(24) </num><content>For Overseas Contingency Operations Transfer Fund, $1,253,900,000.</content></paragraph> </section> <section> <num value="302">SEC. 302. </num><heading>WORKING CAPITAL FUNDS.</heading> <chapeau>Funds are hereby authorized to be appropriated for fiscal year 1998 for the use of the Armed Forces and other activities and agencies of the Department of Defense for providing capital for working capital and revolving funds in amounts as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>For the Defense Working Capital Funds, $971,952,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>For the National Defense Sealift Fund, $1,059,948,000.</content></paragraph> </section> <section> <num value="303">SEC. 303. </num><heading>ARMED FORCES RETIREMENT HOME.</heading> <content>There is hereby authorized to be appropriated for fiscal year 1998 from the Armed Forces Retirement Home Trust Fund the sum of $79,977,000 for the operation of the Armed Forces Retirement Home, including the United States Soldiers’ and Airmen’s Home and the Naval Home.</content> </section> <section> <num value="304">SEC. 304. </num><heading>FISHER HOUSE TRUST FUNDS.</heading> <chapeau>Funds are hereby authorized to be appropriated for fiscal year 1998, out of funds in Fisher House Trust Funds not otherwise appropriated, for the operation of Fisher houses described in section 2221(a) of title 10, United States Code, as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>From the Fisher House Trust Fund, Department of the Army, $250,000 for Fisher houses that are located in proximity to medical treatment facilities of the Army.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>From the Fisher House Trust Fund, Department of the Navy, $150,000 for Fisher houses that are located in proximity to medical treatment facilities of the Navy.<page identifier="/us/stat/111/1671">111 STAT. 1671</page></content></paragraph> </section> <section> <num value="305">SEC. 305. </num><heading>TRANSFER FROM NATIONAL DEFENSE STOCKPILE TRANSACTION FUND.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Transfer Authority</inline>.—</heading><chapeau>To the extent provided in appropriations Acts, not more than $150,000,000 is authorized to be transferred from the National Defense Stockpile Transaction Fund to operation and maintenance accounts for fiscal year 1998 in amounts as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>For the Army, $50,000,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>For the Navy, $50,000,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>For the Air Force, $50,000,000.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><chapeau>Treatment of Transfers.—Amounts transferred under this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>shall be merged with, and be available for the same purposes and the same period as, the amounts in the accounts to which transferred; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>may not be expended for an item that has been denied authorization of appropriations by Congress.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Relationship to Other Transfer Authority</inline>.—</heading><content>The transfer authority provided in this section is in addition to the transfer authority provided in section 1001.</content> </subsection> </section> <section> <num value="306">SEC. 306. </num><heading>REFURBISHMENT OF M1–A1 TANKS.</heading> <content>Of the amount authorized to be appropriated pursuant to section 301(1) for operation and maintenance for the Anny, $35,000,000 shall be available only for refurbishment of M1–A1 tanks under the AIM–XXI program if the Secretary of Defense determines that the cost effectiveness of the pilot AIM–XXI program is validated through user trials conducted at the National Training Center, Fort Irwin, California.</content> </section> <section> <num value="307">SEC. 307. </num><heading>OPERATION OF PREPOSITIONED FLEET, NATIONAL TRAINING CENTER, FORT IRWIN, CALIFORNIA.</heading> <content>Of the amount authorized to be appropriated pursuant to section 301(1) for operation and maintenance for the Army, $60,200,000 shall be available only to pay costs associated with the operation of the prepositioned fleet of equipment during training rotations at the National Training Center, Fort Irwin, California.</content> </section> <section> <num value="308">SEC. 308. </num><heading>REFURBISHMENT AND INSTALLATION OF AIR SEARCH RADAR.</heading> <content>Of the amount authorized to be appropriated pursuant to section 301(2) for operation and maintenance for the Navy, $6,000,000 may be available for the refurbishment and installation of the AN/SPS–48E air search radar for the Ship Self Defense System at the Integrated Ship Defense Systems Engineering Center, Naval Surface Warfare Center, Wallops Islands, Virginia.</content> </section> <section> <num value="309">SEC. 309. </num><heading>CONTRACTED TRAINING FLIGHT SERVICES.</heading> <content>Of the amount authorized to be appropriated pursuant to section 301(4) for operation and maintenance for the Air Force, $12,000,000 may be used for contracted training flight services.</content> </section> <section> <num value="310">SEC. 310. </num><heading>PROCUREMENT TECHNICAL ASSISTANCE PROGRAMS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Funding</inline>.—</heading><content>Of the amount authorized to be appropriated under section 301(5), $12,000,000 shall be available for carrying out the provisions of chapter 142 of title 10, United States Code.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Specific Programs</inline>.—</heading><content>Of the amounts made available pursuant to subsection (a), $600,000 shall be available for fiscal year <page identifier="/us/stat/111/1672">111 STAT. 1672</page>1998 for the purpose of carrying out programs sponsored by eligible entities referred to in subparagraph (D) of section 2411(1) of title 10, United States Code, that provide procurement technical assistance in distressed areas referred to in subparagraph (B) of section 2411(2) of such title. If there is an insufficient number of satisfactory proposals for cooperative agreements in such distressed areas to allow effective use of the funds made available in accordance with this subsection in such areas, the funds shall be allocated among the Defense Contract Administration Services regions in accordance with section 2415 of such title.</content> </subsection> </section> <section> <num value="311">SEC. 311. </num><heading>OPERATION OF FORT CHAFFEE, ARKANSAS.</heading> <content>Of the amount authorized to be appropriated pursuant to section 301(10) for operation and maintenance for the Army National Guard, $6,854,000 may be available for the operation of Fort Chaffee, Arkansas.</content> </section> </subtitle> <subtitle> <num value="B">Subtitle B—</num><heading>Military Readiness Issues</heading> <section> <num value="321">SEC. 321. </num><heading>MONTHLY REPORTS ON ALLOCATION OF FUNDS WITHIN OPERATION AND MAINTENANCE BUDGET SUBACTIVITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Chapter 9 of title 10, United States Code, is amended by adding at the end the following new section: <quotedContent> <section> <num value="228">“§ 228. </num><heading>Monthly reports on allocation of funds within operation and maintenance budget subactivities</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Monthly Report</inline>.—</heading><content>The Secretary of Defense shall submit to Congress a monthly report on the allocation of appropriations to O&M budget activities and to the subactivities of those budget activities. Each such report shall be submitted not later than 60 days after the end of the month to which the report pertains.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Matters To Be Included</inline>.—</heading><chapeau>Each such report shall set forth the following for each subactivity of the O&M budget activities:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>The amount of budget authority appropriated for that subactivity in the most recent regular Department of Defense Appropriations Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The amount of budget authority actually made available for that subactivity, taking into consideration supplemental appropriations, rescissions, and other adjustments required by law or made pursuant to law.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>The amount programmed to be expended from such subactivity.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Identification of Certain Fluctuations</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>If, in the report under this section for a month of a fiscal year after the first month of that fiscal year, an amount shown under subsection (b) for a subactivity is different by more than $15,000,000 from the corresponding amount for that subactivity in the report for the first month of that fiscal year, the Secretary shall include in the report notice of that difference.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>If, in the report under this section for a month of a fiscal year after a month for which the report under this section includes a notice under paragraph (1), an amount shown under subsection (b) for a subactivity is different by more than $15,000,000 from the corresponding amount for that subactivity in the most recent report that includes a notice under paragraph (1) or this <page identifier="/us/stat/111/1673">111 STAT. 1673</page>paragraph, the Secretary shall include in the report notice of that difference.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Report on Fluctuations</inline>.—</heading><chapeau>If a report under this section includes a notice under subsection (c), the Secretary shall include in the report with each such notice the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>The reasons for the reallocations of funds resulting in the inclusion of that notice in the report.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>Each budget subactivity involved in those reallocations.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>The effect of those reallocations on the operation and maintenance activities funded through the subactivity with respect to which the notice is included in the report.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">O&M Budget Activity Defined</inline>.—</heading><content>For purposes of this section, the term ‘O&M budget activity’ means a budget activity within an operation and maintenance appropriation of the Department of Defense for a fiscal year.”.</content> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of such chapter is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“228.</designator> <label>Monthly reports on allocation of funds within operation and maintenance budget subactivities.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The first report under section 228<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s228">10 USC 228 note</ref>.</p></sidenote> of title 10, United States Code, as added by subsection (a), shall be for the month of December 1997.</content> </subsection> </section> <section> <num value="322">SEC. 322. </num><heading>EXPANSION OF SCOPE OF QUARTERLY READINESS REPORTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Expanded Reports Required</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Section 482 of title 10, United States Code, is amended to read as follows: <quotedContent> <section> <num value="482">“§ 482. </num><heading>Quarterly reports: personnel and unit readiness</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Quarterly Reports Required</inline>.—</heading><content>Not later than 30 days after the end of each calendar-year quarter, the Secretary of Defense shall submit to Congress a report regarding military readiness. The report for a quarter shall contain the information required by subsections (b), (d), and (e).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Readiness Problems and Remedial Actions</inline>.—</heading><chapeau>Each report shall specifically describe—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>each readiness problem and deficiency identified using the assessments considered under subsection (c);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>planned remedial actions; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>the key indicators and other relevant information related to each identified problem and deficiency.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Consideration of Readiness Assessments</inline>.—</heading><chapeau>The information required under subsection (b) to be included in the report for a quarter shall be based on readiness assessments that are provided during that quarter—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><chapeau>to any council, committee, or other body of the Department of Defense—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>that has responsibility for readiness oversight; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>whose membership includes at least one civilian officer in the Office of the Secretary of Defense at the level of Assistant Secretary of Defense or higher;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>by senior civilian and military officers of the military departments and the commanders of the unified and specified commands; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>as part of any regularly established process of periodic readiness reviews for the Department of Defense as a whole.<page identifier="/us/stat/111/1674">111 STAT. 1674</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Comprehensive Readiness Indicators for Active Components</inline>.—</heading><chapeau>Each report shall also include information regarding each of the active components of the armed forces (and an evaluation of such information) with respect to each of the following readiness indicators:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">Personnel strength</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>Personnel status, including the extent to which members of the armed forces are serving in positions outside of their military occupational specialty, serving in grades other than the grades for which they are qualified, or both.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>Historical data and projected trends in personnel strength and status.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">Personnel turbulence</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>Recruit quality.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>Borrowed manpower.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>Personnel stability.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><heading><inline class="smallCaps">Other personnel matters</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>Personnel morale.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>Recruiting status.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><heading><inline class="smallCaps">Training</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>Training unit readiness and proficiency.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>Operations tempo.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>Training funding.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>Training commitments and deployments.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><heading><inline class="smallCaps">Logistics—equipment fill</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>Deployed equipment.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>Equipment availability.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>Equipment that is not mission capable.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>Age of equipment.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E) </num><content>Condition of nonpacing items.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6) </num><heading><inline class="smallCaps">Logistics—equipment maintenance</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>Maintenance backlog.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7) </num><heading><inline class="smallCaps">Logistics—supply</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>Availability of ordnance and spares.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>Status of prepositioned equipment.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Unit Readiness Indicators</inline>.—</heading><chapeau>Each report shall also include information regarding the readiness of each active component unit of the armed forces at the battalion, squadron, or an equivalent level (or a higher level) that received a readiness rating of C–3 (or below) for any month of the calendar-year quarter covered by the report. With respect to each such unit, the report shall separately provide the following information:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>The unit designation and level of organization.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The overall readiness rating for the unit for the quarter and each month of the quarter.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>The resource area or areas (personnel, equipment and supplies on hand, equipment condition, or training) that adversely affected the unit’s readiness rating for the quarter.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>The reasons why the unit received a readiness rating of C–3 (or below).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f) </num><heading><inline class="smallCaps">Classification of Reports</inline>.—</heading><content>A report under this section shall be submitted in unclassified form. To the extent the Secretary of Defense determines necessary, the report may also be submitted in classified form.”.<page identifier="/us/stat/111/1675">111 STAT. 1675</page></content> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The item relating to section 482 in the table of sections at the beginning of chapter 23 of such title is amended to read as follows: <quotedContent> <toc> <referenceItem role="section"><designator>“482.</designator> <label>Quarterly reports: personnel and unit readiness.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Implementation Plan To Examine Readiness Indicators</inline>.—</heading><chapeau><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s482">10 USC 482 note</ref>.</p></sidenote>Not later than January 15, 1998, the Secretary of Defense shall submit to the congressional defense committees a plan—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>specifying the manner in which the Secretary will implement the additional reporting requirement of subsection (d) of section 482 of title 10, United States Code, as added by this section; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>specifying the criteria proposed to be used to evaluate the readiness indicators identified in such subsection (d).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Limitation Pending Receipt of Implementation Plan</inline>.—</heading><content>Of the amount available for fiscal year 1998 for operation and support activities of the Office of the Secretary of Defense, 10 percent may not be obligated until after the date on which the implementation plan required by subsection (b) is submitted.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Transition To Complete Report</inline>.—</heading><content>Until the report under<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s482">10 USC 482 note</ref>.</p></sidenote> section 482 of title 10, United States Code, as amended by subsection (a), for the third quarter of 1998 is submitted, the Secretary of Defense may omit the information required by subsection (a) of such section if the Secretary determines that it is impracticable to comply with such subsection with regard to the preceding reports.</content> </subsection> </section> <section> <num value="323">SEC. 323. </num><heading>SEMIANNUAL REPORTS ON TRANSFERS FROM HIGH-PRIORITY READINESS APPROPRIATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Reports Required</inline>.—</heading><content>Chapter 23 of title 10, United States Code, is amended by adding at the end the following new section: <quotedContent> <section> <num value="483">“§ 483. </num><heading>Reports on transfers from high-priority readiness appropriations</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Annual Reports</inline>.—</heading><content>Not later than the date on which the President submits the budget for a fiscal year to Congress pursuant to section 1105 of title 31, the Secretary of Defense shall submit to the Committee on Armed Services and the Committee on Appropriations of the Senate and the Committee on National Security and the Committee on Appropriations of the House of Representatives a report on transfers during the preceding fiscal year from funds available for each covered budget activity.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Midyear Reports</inline>.—</heading><content>Not later than June 1 of each fiscal year, the Secretary of Defense shall submit to the congressional committees specified in subsection (a) a report on transfers, during the first six months of that fiscal year, from funds available for each covered budget activity.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Matters To Be Included</inline>.—</heading><chapeau>In each report under subsection (a) or (b), the Secretary of Defense shall include for each covered budget activity the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><chapeau>A statement, for the period covered by the report, of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>the total amount of transfers into funds available for that activity;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>the total amount of transfers from funds available for that activity; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>the net amount of transfers into, or out of, funds available for that activity.<page identifier="/us/stat/111/1676">111 STAT. 1676</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>A detailed explanation of the transfers into, and out of, funds available for that activity during the period covered by the report.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Covered Budget Activity Defined</inline>.—</heading><chapeau>In this section, the term ‘covered budget activity’ means each of the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><chapeau>The budget activity groups (known as ‘subactivities’) within the Operating Forces budget activity of the annual Operation and Maintenance, Army, appropriation that are designated as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>All subactivities under the category of Land Forces.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>Land Forces Depot Maintenance.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>Base Support.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>Maintenance of Real Property.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><chapeau>The Air Operations budget activity groups (known as ‘subactivities’) within the Operating Forces budget activity of the annual Operation and Maintenance, Navy, appropriation that are designated as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>Mission and Other Flight Operations.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>Fleet Air Training.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>Aircraft Depot Maintenance.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>Base Support.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E) </num><content>Maintenance of Real Property.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><chapeau>The Ship Operations budget activity groups (known as ‘subactivities’) within the Operating Forces budget activity of the annual Operation and Maintenance, Navy, appropriation that are designated as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>Mission and Other Ship Operations.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>Ship Operational Support and Training.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>Ship Depot Maintenance.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>Base Support.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E) </num><content>Maintenance of Real Property.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><chapeau>The Expeditionary Forces budget activity groups (known as ‘subactivities’) within the Operating Forces budget activity of the annual Operation and Maintenance, Marine Corps, appropriation that are designated as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>Operational Forces.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>Depot Maintenance.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>Base Support.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>Maintenance of Real Property.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><chapeau>The Air Operations and Combat Related Operations budget activity groups (known as ‘subactivities’) within the Operating Forces budget activity of the annual Operation and Maintenance, Air Force, appropriation that are designated as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>Primary Combat Forces.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>Primary Combat Weapons.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>Air Operations Training.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>Depot Maintenance.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E) </num><content>Base Support.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F) </num><content>Maintenance of Real Property.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6) </num><content>1716 Mobility Operations budget activity group (known as a ‘subactivity’) within the Mobilization budget activity of the annual Operation and Maintenance, Air Force, appropriation that is designated as Airlift Operations.<page identifier="/us/stat/111/1677">111 STAT. 1677</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Termination</inline>.—</heading><content>The requirements specified in subsections (a) and (b) shall terminate upon the submission of the annual report under subsection (a) covering fiscal year 2000.”.</content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections at the beginning of such chapter is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“483.</designator> <label>Reports on transfers from high-priority readiness appropriations.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="324">SEC. 324. </num><heading>ANNUAL REPORT ON AIRCRAFT INVENTORY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Annual Report Required</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Chapter 23 of title 10, United States Code, is amended by inserting after section 483, as added by section 323, the following new section: <quotedContent> <section> <num value="484">“§ 484. </num><heading>Annual report on aircraft inventory</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Annual Report</inline>.—</heading><content>The Under Secretary of Defense (Comptroller) shall submit to Congress each year a report on the aircraft in the inventory of the Department of Defense. The Under Secretary shall submit the report when the President submits the budget to Congress under section 1105(a) of title 31.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Content</inline>.—</heading><chapeau>The report shall set forth, in accordance with subsection (c), the following information:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>The total number of aircraft in the inventory.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><chapeau>The total number of the aircraft in the inventory that are active, stated in the following categories (with appropriate subcategories for mission aircraft, training aircraft, dedicated test aircraft, and other aircraft):</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>Primary aircraft.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>Backup aircraft.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>Attrition and reconstitution reserve aircraft.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><chapeau>The total number of the aircraft in the inventory that are inactive, stated in the following categories:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>Bailment aircraft.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>Drone aircraft.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>Aircraft for sale or other transfer to foreign governments.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>Leased or loaned aircraft.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E) </num><content>Aircraft for maintenance training.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F) </num><content>Aircraft for reclamation.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G) </num><content>Aircraft in storage.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>The aircraft inventory requirements approved by the Joint Chiefs of Staff.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Display of Information</inline>.—</heading><content>The report shall specify the information required by subsection (b) separately for the active component of each armed force and for each reserve component of each armed force and, within the information set forth for each such component, shall specify the information separately for each type, model, and series of aircraft provided for in the future-years defense program submitted to Congress.”.</content> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 483, as added by section 323, the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“484.</designator> <label>Report on aircraft inventory.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Special Submission Date for First Report</inline>.—</heading><content>The Under<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s484">10 USC 484 note</ref>.</p></sidenote> Secretary of Defense (Comptroller) shall submit the first report required under section 484 of title 10, United States Code (as added by subsection (a)), not later than January 30, 1998.<page identifier="/us/stat/111/1678">111 STAT. 1678</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s221">10 USC 221 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Modification of Budget Data Exhibits</inline>.—</heading><content>The Under Secretary of Defense (Comptroller) shall ensure that aircraft budget data exhibits of the Department of Defense that are submitted to Congress display total numbers of active aircraft where numbers of primary aircraft or primary authorized aircraft are displayed in those exhibits.</content> </subsection> </section> <section> <num value="325">SEC. 325. </num><heading>ADMINISTRATIVE ACTIONS ADVERSELY AFFECTING MILITARY TRAINING OR OTHER READINESS ACTIVITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Congressional Notification</inline>.—</heading><content>Chapter 101 of title 10, United States Code, is amended by adding at the end the following new section: <quotedContent> <section> <num value="2014">“§ 2014. </num><heading>Administrative actions adversely affecting military training or other readiness activities</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Congressional Notification</inline>.—</heading><content>Whenever an official of an Executive agency takes or proposes to take an administrative action that, as determined by the Secretary of Defense in consultation with the Chairman of the Joint Chiefs of Staff, affects training or any other readiness activity in a manner that has or would have a significant adverse effect on the military readiness of any of the armed forces or a critical component thereof, the Secretary shall submit a written notification of the action and each significant adverse effect to the head of the Executive agency taking or proposing to take the administrative action. At the same time, the Secretary shall transmit a copy of the notification to the President, the Committee on Armed Services of the Senate, and the Committee on National Security of the House of Representatives.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Notification To Be Prompt</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Subject to paragraph (2), the Secretary shall submit a written notification of an administrative action or proposed administrative action required by subsection (a) as soon as possible after the Secretary becomes aware of the action or proposed action.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote><content>The Secretary shall prescribe policies and procedures to ensure that the Secretary receives information on an administrative action or proposed administrative action described in subsection (a) promptly after Department of Defense personnel receive notice of such an action or proposed action.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Consultation Between Secretary and Head of Executive Agency</inline>.—</heading><chapeau>Upon notification with respect to an administrative action or proposed administrative action under subsection (a), the head of the Executive agency concerned shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>respond promptly to the Secretary; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>consistent with the urgency of the training or readiness activity involved and the provisions of law under which the administrative action or proposed administrative action is being taken, seek to reach an agreement with the Secretary on immediate actions to attain the objective of the administrative action or proposed administrative action in a manner which eliminates or mitigates the adverse effects of the administrative action or proposed administrative action upon the training or readiness activity.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Moratorium</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>Subject to paragraph (2), upon notification with respect to an administrative action or proposed administrative action under subsection (a), the administrative action or proposed administrative action shall cease to be effective with respect to the Department of Defense until the earlier of—<page identifier="/us/stat/111/1679">111 STAT. 1679</page></chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>the end of the five-day period beginning on the date of the notification; or</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>the date of an agreement between the head of the Executive agency concerned and the Secretary as a result of the consultations under subsection (c).</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>Paragraph (1) shall not apply with respect to an administrative action or proposed administrative action if the head of the Executive agency concerned determines that the delay in enforcement of the administrative action or proposed administrative action will pose an actual threat of an imminent and substantial endangerment to public health or the environment.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Effect of Lack of Agreement</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>If the head of an Executive agency and the Secretary do not enter into an agreement under subsection (c)(2), the Secretary shall submit a written notification to the President who shall take final action on the matter.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>Not later than 30 days after the date on which the President takes final action on a matter under paragraph (1), the President shall submit to the committees referred to in subsection (a) a notification of the action.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f) </num><heading><inline class="smallCaps">Limitation on Delegation of Authority</inline>.—</heading><content>The head of an Executive agency may not delegate any responsibility under this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g) </num><heading><inline class="smallCaps">Definition</inline>.—</heading><content>In this section, the term ‘Executive agency’ has the meaning given such term in section 105 of title 5, except that the term does not include the General Accounting Office.”.</content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections at the beginning of such chapter is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“2014.</designator> <label>Administrative actions adversely affecting military training or other readiness activities.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="326">SEC. 326. </num><heading>COMMON MEASUREMENT OF OPERATIONS TEMPO AND PERSONNEL TEMPO.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s153">10 USC 153 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Means for Measurement</inline>.—</heading><content>The Chairman of the Joint Chiefs of Staff shall, to the maximum extent practicable, develop (1) a common means of measuring the operations tempo (OPTEMPO) of each of the Armed Forces, and (2) a common means of measuring the personnel tempo (PERSTEMPO) of each of the Armed Forces. The Chairman shall consult with the other members of the Joint Chiefs of Staff in developing those common means of measurement.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">PERSTEMPO Measurement</inline>.—</heading><content>The measurement of personnel tempo developed by the Chairman shall include a means of identifying the rate of deployment for individual members of the Armed Forces in addition to the rate of deployment for units.</content> </subsection> </section> <section> <num value="327">SEC. 327. </num><heading>INCLUSION OF AIR FORCE DEPOT MAINTENANCE AS OPERATION AND MAINTENANCE BUDGET LINE ITEMS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s221">10 USC 221 note</ref>.</p></sidenote> <content>For fiscal year 1999 and each fiscal year thereafter, Air Force depot-level maintenance of materiel shall be displayed as one or more separate line items under each subactivity within the authorization request for operation and maintenance, Air Force, in the proposed budget for that fiscal year submitted to Congress pursuant to section 1105 of title 31, United States Code.<page identifier="/us/stat/111/1680">111 STAT. 1680</page></content> </section> <section> <num value="328">SEC. 328. </num><heading>PROHIBITION OF IMPLEMENTATION OF TIERED READINESS SYSTEM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Prohibition</inline>.—</heading><content>The Secretary of a military department may not implement, or be required to implement, a new readiness system for units of the Armed Forces (as outlined in sections 329 and 330), under which a military unit would be categorized into one of several categories (known as “tiers”) according to the likelihood that the unit will be required to respond to a military conflict and the time in which the unit will be required to respond, if that system would have the effect of changing the methods used as of October 1, 1996, by the Armed Forces under the jurisdiction of that Secretary for determining the priorities for allocating to such military units funding, personnel, equipment, equipment maintenance, and training resources, and the associated levels of readiness of those units that result from those priorities.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Report to Congress Requesting Waiver</inline>.—</heading><content>If the Secretary of Defense determines, following the review required by sections 329 and 330 (or any similar review), that implementation for one or more of the Armed Forces of a tiered readiness system that is prohibited by subsection (a) would be in the national security interests of the United States, the Secretary shall submit to Congress a report setting forth that determination, together with the rationale for that determination, and a request for the enactment of legislation to allow implementation of such a system.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Rule of Construction</inline>.—</heading><content>Nothing in subsection (a) is intended to preclude the Secretary of Defense from taking necessary actions to maintain the combat preparedness of the active and reserve components of the Armed Forces.</content> </subsection> </section> <section> <num value="329">SEC. 329. </num><heading>REPORT ON MILITARY READINESS REQUIREMENTS OF THE ARMED FORCES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Requirement for Report</inline>.—</heading><content>Not later than January 31, 1998, the Chairman of the Joint Chiefs of Staff shall submit to the congressional defense committees a report on the military readiness requirements of the active and reserve components of the Armed Forces (including combat units, combat support units, and combat service support units). The report shall assess such requirements under a tiered readiness and response system that categorizes a given unit according to the likelihood that it will be required to respond to a military conflict and the time within which it will be required to respond.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Preparation by JCS and Commanders of Unified Commands</inline>.—</heading><content>The report required by subsection (a) shall be prepared jointly by the Chairman of the Joint Chiefs of Staff, the Chief of Staff of the Army, the Chief of Naval Operations, the Chief of Staff of the Air Force, the Commandant of the Marine Corps, the commander of the Special Operations Command, and the commanders of the other unified commands.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Assessment Scenario</inline>.—</heading><chapeau>The report shall assess readiness requirements in a scenario that is based on the following assumptions:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>That the Armed Forces of the United States must be capable of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>fighting and winning, in concert with allies, two major theater wars nearly simultaneously; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>deterring or defeating a strategic attack on the United States.<page identifier="/us/stat/111/1681">111 STAT. 1681</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>That the forces available for deployment are the forces included in the force structure recommended in the Quadrennial Defense Review, including all other planned force enhancements.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Assessment Elements</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>The report shall identify, by unit type, all major units of the active and reserve components of the Armed Forces and assess the readiness requirements of the units. Each identified unit shall be categorized within one of the following classifications:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><chapeau>Forward-deployed and crisis response forces, or “Tier I” forces, that possess limited internal sustainment capability and do not require immediate access to regional air bases or ports or overflight rights, including the following:</chapeau> <clause class="indent2 fontsize10"><num value="i">(i) </num><content>Force units that are deployed in rotation at sea or on land outside the United States.</content></clause> <clause class="indent2 fontsize10"><num value="ii">(ii) </num><content>Combat-ready crises response forces that are capable of mobilizing and deploying within 10 days after receipt of orders.</content></clause> <clause class="indent2 fontsize10"><num value="iii">(iii) </num><content>Forces that are supported by prepositioning equipment afloat or are capable of being inserted into a theater upon the capture of a port or airfield by forcible entry forces.</content></clause> </subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>Combat-ready follow-on forces, or “Tier II” forces, that can be mobilized and deployed to a theater within approximately 60 days after receipt of orders.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><content>Combat-ready conflict resolution forces, or “Tier III” forces, that can be mobilized and deployed to a theater within approximately 180 days after receipt of orders.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="D">(D) </num><content>All other active and reserve component force units which are not categorized within a classification described in subparagraph (A), (B), or (C).</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>For the purposes of paragraph (1), the following units are mayor units:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>In the case of the Army or Marine Corps, a brigade and a battalion.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>In the case of the Navy, a squadron of aircraft, a ship, and a squadron of ships.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>In the case of the Air Force, a squadron of aircraft.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Projection of Savings for Use for Modernization</inline>.—</heading><chapeau>The report shall include a projection for fiscal years 1998 through 2003 of the amounts of the savings in operation and maintenance funding that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>could be derived by each of the Armed Forces by placing as many units as is practicable into the lower readiness categories among the tiers; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>could be made available for force modernization.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Form of Report</inline>.—</heading><content>The report under this section shall be submitted in unclassified form, but may contain a classified annex.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num><heading><inline class="smallCaps">Planned Force Enhancement Defined</inline>.—</heading><content>In this section, the term “planned force enhancement”, with respect to the force structure recommended in the Quadrennial Defense Review, means any future improvement in the capability of the force (including current strategic and future improvement in strategic lift capability) that is assumed in the development of the recommendation for the force structure set forth in the Quadrennial Defense Review.<page identifier="/us/stat/111/1682">111 STAT. 1682</page></content> </subsection> </section> <section> <num value="330">SEC. 330. </num><heading>ASSESSMENT OF CYCLICAL READINESS POSTURE OF THE ARMED FORCES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Requirement</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Not later than 120 days after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report on the readiness posture of the Armed Forces described in subsection (b).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The Secretary shall prepare the report required under paragraph (1) with the assistance of the Joint Chiefs of Staff. In providing such assistance, the Chairman of the Joint Chiefs of Staff shall consult with the Chief of the National Guard Bureau.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Readiness Posture</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The readiness posture to be covered by the report under subsection (a) is a readiness posture for units of the Armed Forces, or for designated units of the Armed Forces, that provides for a rotation of such units between a state of high readiness and a state of low readiness.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>As part of the evaluation of the readiness posture described in paragraph (1), the report shall address in particular a readiness posture that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>establishes within the Armed Forces two equivalent forces each structured so as to be capable of fighting and winning a major theater war; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>provides for an alternating rotation of such forces between a state of high readiness and a state of low readiness.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><chapeau>The evaluation of the readiness posture described in paragraph (2) shall be based upon assumptions permitting comparison with the existing force structure as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>That there are assembled from among the units of the Armed Forces two equivalent forces each structured so as to be capable of fighting and winning a major theater war.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><chapeau>That each force referred to in subparagraph (A) includes—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>four active Army divisions, including one mechanized division, one armored division, one light infantry division, and one division combining airborne units and air assault units, and appropriate support and service support units for such divisions;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>six divisions (or division equivalents) of the Army National Guard or the Army Reserve that are essentially equivalent in structure, and appropriate support and service support units for such divisions;</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii) </num><content>six aircraft carrier battle groups;</content></clause> <clause class="indent3 fontsize10"><num value="iv">(iv) </num><content>six active Air Force fighter wings (or fighter wing equivalents);</content></clause> <clause class="indent3 fontsize10"><num value="v">(v) </num><content>four Air Force reserve fighter wings (or fighter wing equivalents); and</content></clause> <clause class="indent3 fontsize10"><num value="vi">(vi) </num><content>one active Marine Corps expeditionary force.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>That each force may be supplemented by critical units or units in short supply, including heavy bomber units, strategic lift units, and aerial reconnaissance units, that are not subject to the readiness rotation otherwise assumed for purposes of the evaluation or are subject to the rotation on a modified basis.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>That units of the Armed Forces not assigned to a force are available for operations other than those essential to fight and win a major theater war, including peace operations.<page identifier="/us/stat/111/1683">111 STAT. 1683</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E) </num><content>That the state of readiness of each force alternates between a state of high readiness and a state of low readiness on a frequency determined by the Secretary (but not more often than once every six months) and with only one force at a given state of readiness at any one time.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F) </num><content>That, during the period of state of high readiness of a force, any operations or activities (including leave and education and training of personnel) that detract from the near-term wartime readiness of the force are temporary and their effects on such state of readiness minimized.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">(G) </num><content>That units are assigned overseas during the period of state of high readiness of the force to which the units are assigned primarily on a temporary duty basis.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">(H) </num><content>That, during the period of high readiness of a force, the operational war plans for the force incorporate the divisions (or division equivalents) of the Army Reserve or Army National Guard assigned to the force in a manner such that one such division (or division equivalent) is, on a rotating basis for such divisions (or division equivalents) during the period, maintained in a high state of readiness and dedicated as the first reserve combat division to be transferred overseas in the event of a major theater war.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Report Elements</inline>.—</heading><chapeau>The report under this section shall include the following elements for the readiness posture described in subsection (b)(2):</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>An estimate of the range of cost savings achievable over the long term as a result of implementing the readiness posture, including—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the savings achievable from reduced training levels and readiness levels during periods in which a force referred to in subsection (b)(3)(A) is in a state of low readiness; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the savings achievable from reductions in costs of infrastructure overseas as a result of reduced permanent change of station rotations.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>An assessment of the potential risks associated with a lower readiness status for units assigned to a force in a state of low readiness under the readiness posture, including the risks associated with the delayed availability of such units overseas in the event of two nearly simultaneous major theater wars.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>An assessment of the potential risks associated with requiring the forces under the readiness posture to fight a major war in any theater worldwide.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>An assessment of the modifications of the current force structure of the Armed Forces that are necessary to achieve the range of cost savings estimated under paragraph (1), including the extent of the diminishment, if any, of the military capabilities of the Armed Forces as a result of the modifications.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>An assessment whether or not the risks of diminished military capability associated with implementation of the readiness posture exceed the risks of diminished military capability associated with the modifications of the current force structure necessary to achieve cost savings equivalent to the best case for cost savings resulting from the implementation of the readiness posture.<page identifier="/us/stat/111/1684">111 STAT. 1684</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Form of Report</inline>.—</heading><content>The report under this section shall be submitted in unclassified form, but may contain a classified annex.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>In this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The term “state of high readiness”, in the case of a military force, means the capability to mobilize first-to-arrive units of the force within 18 hours and last-to-arrive units within 120 days of a particular event.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The term “state of low readiness”, in the case of a military force, means the capability to mobilize first-to-arrive units within 90 days and last-to-arrive units within 180 days of a particular event.</content></paragraph> </subsection> </section> <section> <num value="331">SEC. 331. </num><heading>REPORT ON MILITARY EXERCISES CONDUCTED UNDER CERTAIN TRAINING EXERCISES PROGRAMS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Report</inline>.—</heading><chapeau>Not later than February 16, 1998, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report on the military exercises conducted by the Department of Defense during fiscal years 1995, 1996, and 1997 and the military exercises planned to be conducted during fiscal years 1998, 1999, and 2000, under the following training exercises programs:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The program known as the “CJCS Exercise Program”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The program known as the “Partnership for Peace program”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The Cooperative Threat Reduction programs.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Information on Exercises Conducted or To Be Conducted</inline>.—</heading><chapeau>The report under subsection (a) shall include the following information for each exercise included in the report, which shall be set forth by fiscal year and shown within the fiscal year by the sponsoring command:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Name of the exercise.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Type, description, duration, and objectives of the exercise.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Participating units, including the number of personnel participating in each unit.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>For each participating unit, the percentage of the tasks on that unit’s specification of tasks (known as a mission essential task list) or a comparable specification (in the case of any of the Armed Forces not maintaining a mission essential task list designation) that were performed or are scheduled to be performed as part of the exercise.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>The cost of the exercise paid or to be paid out of funds available to the Chairman of the Joint Chiefs of Staff and the cost to each of the Armed Forces participating in the exercise, with a description of the categories of activities for which those costs are incurred in each such case.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>In the case of each planned exercise, the priority of the exercise in relation to all other exercises planned by the sponsoring command to be conducted during that fiscal year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>In the case of an exercise conducted or to be conducted in a foreign country or with military personnel of a foreign country, the military forces of the foreign country that participated or will participate in the exercise.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Assessment</inline>.—</heading><chapeau>The report under subsection (a) shall include—<page identifier="/us/stat/111/1685">111 STAT. 1685</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>an assessment of the ability of each of the Armed Forces to meet requirements of the training exercises programs specified in subsection (a);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>an assessment of the training value of each exercise covered in the report to each unit of the Armed Forces participating in the exercise, including for each such unit an assessment of the value of the percentage under subsection (b)(4) as an indicator of the training value of the exercise for that unit;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>options to minimize the negative effects on operational and personnel tempo resulting from the training exercises programs; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><chapeau>in the case of exercises to be conducted in a foreign country or with military personnel of a foreign country—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>an assessment of the training value of each exercise covered in the report to the foreign countries involved and the extent to which the exercise enhances the readiness capabilities of all military forces involved in the exercise (both United States and foreign); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>an assessment of the benefits to be derived through enhanced military-to-military relationships between the United States and foreign countries.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Funding Limitation Pending Receipt of Report</inline>.—</heading><content>Of the funds available for fiscal year 1998 for the conduct of the CJCS Exercise Program, not more than 90 percent may be expended before the date on which the report required under subsection (a) is submitted.</content> </subsection> </section> <section> <num value="332">SEC. 332. </num><heading>REPORT ON OVERSEAS DEPLOYMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report on the deployments overseas of members of the Armed Forces (other than the Coast Guard). The report shall describe the deployments as of June 30, 1996, and as of June 30, 1997.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Elements</inline>.—</heading><chapeau>The report shall include the following, shown as of each date specified in subsection (a) and shown for the Armed Forces in the aggregate and separately for each of the Armed Forces:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The number of military personnel deployed overseas pursuant to a permanent duty assignment, shown in the aggregate and by country or ocean to which deployed.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>The number of military personnel deployed overseas pursuant to a temporary duty assignment, including—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the number engaged in training with units of a single military department;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the number engaged in United States military joint exercises; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>the number engaged in training with allied units.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The number of military personnel deployed overseas who were engaged in contingency operations (including peacekeeping or humanitarian assistance missions) or other activities (other than those personnel covered by paragraphs (1) and (2)).<page identifier="/us/stat/111/1686">111 STAT. 1686</page></content></paragraph> </subsection> </section> </subtitle> <subtitle> <num value="C">Subtitle C—</num><heading>Environmental Provisions</heading> <section> <num value="341">SEC. 341. </num><heading>REVISION OF MEMBERSHIP TERMS FOR STRATEGIC ENVIRONMENTAL RESEARCH AND DEVELOPMENT PROGRAM SCIENTIFIC ADVISORY BOARD.</heading> <content>Section 2904(b)(4) of title 10, United States Code, is amended by striking out “three” and inserting in lieu thereof “not less than two and not more than four”.</content> </section> <section> <num value="342">SEC. 342. </num><heading>AMENDMENTS TO AUTHORITY TO ENTER INTO AGREEMENTS WITH OTHER AGENCIES IN SUPPORT OF ENVIRONMENTAL TECHNOLOGY CERTIFICATION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Authority To Enter Into Agreements With Indian Tribes</inline>.—</heading><chapeau>Section 327 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2483; 10 U.S.C. 2702 note) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subsection (a), by inserting “<quotedText>, or with an Indian tribe,</quotedText>” after “with an agency of a State or local government”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by redesignating subsection (e) as subsection (f); and (3) by inserting after subsection (d) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Definition</inline>.—</heading><content>In this section, the term ‘Indian tribe’ has the meaning given that term by section 101(36) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601(36)).”.</content> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Elimination of Certain Limitation on Authority</inline>.—</heading><content>Subsection (b)(1) of such section is amended by striking out “in carrying out its environmental restoration activities”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Additional Report Information</inline>.—</heading><content>Subsection (d) of such section is amended by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><content>A statement of the funding that will be required to meet commitments made to State and local governments and Indian tribes under such agreements entered into during the fiscal year preceding the fiscal year in which the report is submitted.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6) </num><content>A description of any cost-sharing arrangement under any such agreements.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2702">10 USC 2702 note</ref>.</p></sidenote><heading><inline class="smallCaps">Guidelines for Reimbursement and Cost-Sharing</inline>.—</heading><content>Not later than 90 days after the date of enactment of this Act, the Secretary of Defense shall submit to Congress a report setting forth the guidelines established by the Secretary for reimbursement of State and local governments, and for cost-sharing between the Department of Defense, such governments, and vendors, under cooperative agreements entered into under such section 327.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2702">10 USC 2702 note</ref>.</p></sidenote><heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall take effect 30 days after the date on which the report required by subsection (d) is submitted to Congress.</content> </subsection> </section> <section> <num value="343">SEC. 343. </num><heading>MODIFICATIONS OF AUTHORITY TO STORE AND DISPOSE OF NONDEFENSE TOXIC AND HAZARDOUS MATERIALS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Storage of Materials Owned by Members and Dependents</inline>.—</heading><content>Subsection (a)(1) of section 2692 of title 10, United States Code, is amended by striking out “by the Department of Defense.” and inserting in lieu thereof the following: “either by the Department of Defense or by a member of the armed forces (or a dependent of the member) assigned to or provided military housing on the installation.”.<page identifier="/us/stat/111/1687">111 STAT. 1687</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Additional Authority</inline>.—</heading><chapeau>Subsection (b) of such section is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by redesignating paragraphs (1) through (9) as paragraphs (2) through (10), respectively; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting before paragraph (2) (as so redesignated) the following new paragraph (1): <quotedContent> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>the storage, treatment, or disposal of materials that will be or have been used in connection with an activity of the Department of Defense or in connection with a service to be performed on an installation of the Department for the benefit of the Department;”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Storage and Disposal of Explosives To Assist Law Enforcement Agencies</inline>.—</heading><chapeau>Subsection (b) of such section is amended in paragraph (3) (as redesignated by subsection (b))—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out “Federal law enforcement” and inserting in lieu thereof “Federal, State, or local law enforcement”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking out “Federal agency” and inserting in lieu thereof “Federal, State, or local agency”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Storage of Material in Connection With Authorized and Compatible Use of a Defense Facility</inline>.—</heading><chapeau>Subsection (b) of such section is amended in paragraph (9) (as redesignated by subsection (b))—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out “by a private person in connection with the authorized and compatible use by that person of an industrial-type” and inserting in lieu thereof “in connection with the authorized and compatible use of a”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking out “; and” at the end and inserting in lieu thereof the following: “, including the use of such a facility for testing materiel or training personnel;”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Treatment and Disposal of Material in Connection With Authorized and Compatible Use of a Defense Facility</inline>.—</heading><chapeau>Subsection (b) of such section is amended in paragraph (10) (as redesignated by subsection (b))—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out “by a private person in connection with the authorized and compatible commercial use by that person of an industrial-type” and inserting in lieu thereof “in connection with the authorized and compatible use of a”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking out “with that person” and inserting in lieu thereof “or agreement with the prospective user”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by striking out “for that person’s” in subparagraph (B) and inserting in lieu thereof “for the prospective user’s”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>by striking out the period at the end and inserting in lieu thereof “; and”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Storage of Material in Connection With Space Launch Facilities</inline>.—</heading><content>Subsection (b) of such section is further amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="11">“(11) </num><content>the storage of any material that is not owned by the Department of Defense if the Secretary of the military department concerned determines that the material is required or generated in connection with the use of a space launch facility located on an installation of the Department of Defense or on other land controlled by the United States.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num><heading><inline class="smallCaps">Technical Amendments</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Subsection (a)(1) of such section is further amended by striking out “storage” and inserting in lieu thereof “storage, treatment,”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The heading for such section is amended to read as follows:<page identifier="/us/stat/111/1688">111 STAT. 1688</page> <quotedContent> <section> <num value="2692">“§ 2692. </num><heading>Storage, treatment, and disposal of nondefense toxic and hazardous materials”.</heading> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The item relating to such section in the table of sections at the beginning of chapter 159 of such title is amended to read as follows: <quotedContent> <referenceItem role="section"><designator>“2692.</designator> <label>Storage, treatment, and disposal of nondefense toxic and hazardous materials.”.</label></referenceItem> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2692">10 USC 2692 note</ref>.</p></sidenote><heading><inline class="smallCaps">Savings Clause</inline>.—</heading><content>Nothing in the amendments made by this section is intended to modify environmental laws or laws relating to the siting of facilities.</content> </subsection> </section> <section> <num value="344">SEC. 344. </num><heading>ANNUAL REPORT ON PAYMENTS AND ACTIVITIES IN RESPONSE TO FINES AND PENALTIES ASSESSED UNDER ENVIRONMENTAL LAWS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Annual Reports</inline>.—</heading><content>Section 2706(b)(2) of title 10, United States Code, is amended by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="H">“(H) </num><chapeau>A statement of the fines and penalties imposed or assessed against the Department of Defense under Federal, State, or local environmental law during the fiscal year preceding the fiscal year in which the report is submitted, setting forth each Federal environmental statute under which a fine or penalty was imposed or assessed during the fiscal year, and, with respect to each such statute—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>the aggregate amount of fines and penalties imposed or assessed during the fiscal year;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>the aggregate amount of fines and penalties paid during the fiscal year;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><content>the total amount required for environmental projects to be carried out by the Department of Defense in lieu of the payment of fines or penalties; and</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv) </num><chapeau>the number of fines and penalties imposed or assessed during the fiscal year that were—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I) </num><content>$100,000 or less; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II) </num><content>more than $100,000.”.</content></subclause> </clause> </subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2706">10 USC 2706 note</ref>.</p></sidenote><heading><inline class="smallCaps">Report in Fiscal Year 1998</inline>.—</heading><content>The statement submitted by the Secretary of Defense under subparagraph (H) of section 2706(b)(2) of title 10, United States Code, as added by subsection (a), in 1998 shall, to the maximum extent practicable, include the information required by that subparagraph for each of fiscal years 1994 through 1997.</content> </subsection> </section> <section> <num value="345">SEC. 345. </num><heading>ANNUAL REPORT ON ENVIRONMENTAL ACTIVITIES OF THE DEPARTMENT OF DEFENSE OVERSEAS.</heading> <content>Section 2706 of title 10, United States Code, is amended— (1) by redesignating subsection (d) as subsection (e); and (2) by inserting after subsection (c) the following new subsection (d): <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Report on Environmental Activities Overseas</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of Defense shall submit to Congress each year, not later than 30 days after the date on which the President submits to Congress the budget for a fiscal year, a report on the environmental activities of the Department of Defense overseas.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><chapeau>Each such report shall include a statement of the funding levels during such fiscal year for each of the following categories:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>Compliance by the Department of Defense with requirements under a treaty, law, contract, or other agreement for environmental restoration or compliance activities.<page identifier="/us/stat/111/1689">111 STAT. 1689</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>Performance by the Department of Defense of other environmental restoration and compliance activities overseas.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>Performance by the Department of Defense of any other overseas activities related to the environment, including conferences, meetings, and studies for pilot programs, and travel related to such activities.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></section> <section> <num value="346">SEC. 346. </num><heading>REVIEW OF EXISTING ENVIRONMENTAL CONSEQUENCES OF THE PRESENCE OF THE ARMED FORCES IN BERMUDA.</heading> <content>Not later than 120 days after the date of enactment of this<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> Act, the Secretary of Defense shall submit to the congressional defense committees a report on any remaining environmental effects of the presence of the Armed Forces of the United States in Bermuda.</content> </section> <section> <num value="347">SEC. 347. </num><heading>SENSE OF CONGRESS ON DEPLOYMENT OF UNITED STATES ARMED FORCES ABROAD FOR ENVIRONMENTAL PRESERVATION ACTIVITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Sense of Congress</inline>.—</heading><content>It is the sense of Congress that members of the Army, Navy, Air Force, and Marine Corps should not be deployed outside the United States to provide assistance to another nation in connection with environmental preservation activities in that nation, unless the Secretary of Defense determines that such activities are necessary for national security purposes.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Scope of Section</inline>.—</heading><chapeau>For purposes of this section, environmental preservation activities do not include any of the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Activities undertaken for humanitarian purposes, disaster relief activities, peacekeeping activities, or operational training activities.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Environmental compliance and restoration activities associated with military installations and deployments outside the United States.</content></paragraph> </subsection> </section> <section> <num value="348">SEC. 348. </num><heading>RECOVERY AND SHARING OF COSTS OF ENVIRONMENTAL RESTORATION AT DEPARTMENT OF DEFENSE SITES.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2701">10 USC 2701 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Regulations</inline>.—</heading><content>Not later than March 1, 1998, the Secretary of Defense shall prescribe regulations containing the guidelines and requirements described in subsections (b) and (c).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Guidelines</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The regulations prescribed under subsection (a) shall contain uniform guidelines for the military departments and defense agencies concerning the cost-recovery and costsharing activities of those departments and agencies.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The Secretary shall take appropriate actions to ensure the implementation of the guidelines.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Requirements</inline>.—</heading><chapeau>The regulations prescribed under subsection (a) shall contain requirements for the Secretaries of the military departments and the heads of defense agencies to—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>obtain all data that is relevant for purposes of costrecovery and cost-sharing activities; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>identify any negligence or other misconduct that may preclude indemnification or reimbursement by the Department of Defense for the costs of environmental restoration at a Department site or justify the recovery or sharing of costs associated with such restoration.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Definition</inline>.—</heading><chapeau>In this section, the term “cost-recovery and cost-sharing activities” means activities concerning—<page identifier="/us/stat/111/1690">111 STAT. 1690</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the recovery of the costs of environmental restoration at Department of Defense sites from contractors of the Department and other private parties that contribute to environmental contamination at such sites; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the sharing of the costs of such restoration with such contractors and parties.</content></paragraph> </subsection> </section> <section> <num value="349">SEC. 349. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s270">10 USC 270 note</ref>.</p></sidenote> <heading>PARTNERSHIPS FOR INVESTMENT IN INNOVATIVE ENVIRONMENTAL TECHNOLOGIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Authority</inline>.—</heading><content>Subject to subsection (b), the Secretary of Defense may enter into a partnership with one or more private entities to demonstrate and validate innovative environmental technologies.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Limitations</inline>.—</heading><chapeau>The Secretary of Defense may enter into a partnership with respect to an environmental technology under subsection (a) only if—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>any private entities participating in the partnership are selected through the use of competitive procedures;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the partnership provides for parties other than the Department of Defense to provide at least 50 percent of the funding required (not including in-kind contributions or preexisting investments); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><chapeau>the Secretary determines that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the technology has clear potential to be of significant value to the Department of Defense in its environmental remediation activities at a substantial number of Department of Defense sites; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the technology would not be developed without the commitment of Department of Defense funds.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><chapeau>Evaluation Guidelines.—Before entering into a partnership with respect to an environmental technology under subsection (a), the Secretary of Defense shall give consideration to the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The potential for the technology to be used by the Department of Defense for environmental remediation.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The technical feasibility and maturity of the technology.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The adequacy of financial and management plans to demonstrate and validate the technology.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The costs and benefits to the Department of Defense of developing and using the technology.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>The potential for commercialization of the technology.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>The proposed arrangements for sharing the costs of the partnership through the use of resources outside the Department of Defense.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Funding</inline>.—</heading><content>Under a partnership entered into under subsection (a), the Secretary of Defense may provide funds to the partner or partners from appropriations available to the Department of Defense for environmental activities, for a period of up to five years.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Report</inline>.—</heading><chapeau>In the annual report required under section 2706(a) of title 10, United States Code, the Secretary of Defense shall include the following information with respect to partnerships entered into under this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The number of such partnerships.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>A description of the nature of the technology involved in each such partnership.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>A list of all partners in such partnerships.<page identifier="/us/stat/111/1691">111 STAT. 1691</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Coordination</inline>.—</heading><content>The Secretary of Defense shall ensure that the Department of Defense coordinates with the Administrator of the Environmental Protection Agency in any verification sponsored by the Department of technologies demonstrated and validated by a partnership entered into under this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num><heading><inline class="smallCaps">Procedures</inline>.—</heading><content>The Secretary of Defense shall develop appropriate procedures to ensure that all Department of Defense funds committed to a partnership entered into under this section are expended for the purpose authorized in the partnership agreement. The Secretary may not enter into a partnership under this section until 30 days after the date on which a copy of such procedures is provided to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h) </num><heading><inline class="smallCaps">Termination of Authority</inline>.—</heading><content>The authority to enter into agreements under subsection (a) shall terminate three years after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="350">SEC. 350. </num><heading>PROCUREMENT OF RECYCLED COPIER PAPER.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Procurement Requirements</inline>.—</heading><content>Chapter 140 of title 10, United States Code, is amended by adding at the end the following new section: <quotedContent> <section> <num value="2378">“§ 2378. </num><heading>Procurement of copier paper containing specified percentages of post-consumer recycled content</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Procurement Requirement</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Except as provided in subsections (b) and (c), a department or agency of the Department of Defense may not procure copying machine paper after the applicable date specified in paragraph (2) unless the percentage of post-consumer recycled content of the paper meets the percentage then in effect under such paragraph.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><chapeau>The percentage of post-consumer recycled content of paper required under paragraph (1) is as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>20 percent as of January 1, 1998.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>30 percent as of January 1, 1999.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>50 percent as of January 1, 2004.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Exceptions</inline>.—</heading><chapeau>A department or agency of the Department of Defense is not required to procure copying machine paper containing a percentage of post-consumer recycled content that meets the applicable requirement in subsection (a) if the Secretary concerned determines that one or more of the following circumstances apply with respect to that procurement:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>The cost of procuring copying machine paper satisfying the applicable requirement significantly exceeds the cost of procuring copying machine paper containing a percentage of post-consumer recycled content that does not meet such requirement. The Secretary concerned shall establish the cost differential to be applied under this paragraph.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>Copying machine paper containing a percentage of post-consumer recycled content meeting such requirement is not reasonably available within a reasonable period of time.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>Copying machine paper containing a percentage of post-consumer recycled content meeting such requirement does not meet performance standards of the department or agency for copying machine paper.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Effect of Inability To Meet Goal in 2004</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>In the case of the requirement that will take effect on January 1, 2004, <page identifier="/us/stat/111/1692">111 STAT. 1692</page>pursuant to subsection (a)(2)(C), the requirement shall not take effect with respect to a military department or Defense Agency if the Secretary of Defense determines that the department or agency will be unable to meet such requirement by that date.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Notice.</p></sidenote><content>The Secretary shall submit to Congress written notice of any determination made under paragraph (1) and the reasons for the determination. The Secretary shall submit such notice, if at all, not later than January 1, 2003.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Secretary Concerned Defined</inline>.—</heading><content>In this section, the term ‘Secretary concerned’ means the Secretary of each military department and the Secretary of Defense with respect to the Defense Agencies.”.</content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections at the beginning of such chapter is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“2378.</designator> <label>Procurement of copier paper containing specified percentages of postconsumer recycled content.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="351">SEC. 351. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2701">10 USC 2701 note</ref>.</p></sidenote><heading>PILOT PROGRAM FOR THE SALE OF AIR POLLUTION EMISSION REDUCTION INCENTIVES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Authority</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of Defense may, in consultation with the Administrator of General Services, carry out a pilot program to assess the feasibility and advisability of the sale of economic incentives for the reduction of emission of air pollutants attributable to a facility of a military department.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The Secretary may carry out the pilot program during the period beginning on the date of the enactment of this Act and ending two years after such date.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Incentives Available for Sale</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Under the pilot program, the Secretary may sell economic incentives for the reduction of emission of air pollutants attributable to a facility of a military department only if such incentives are not otherwise required for the activities or operations of the military department.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The Secretary may not, under the pilot program, sell economic incentives attributable to the closure or realignment of a military installation under a base closure law.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><content>If the Secretary determines that additional sales of economic incentives are likely to result in amounts available for allocation under subsection (c)(2) in a fiscal year in excess of the limitation set forth in subparagraph (B) of that subsection, the Secretary shall not carry out such additional sales in that fiscal year.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Use of Proceeds</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The proceeds of sale of economic incentives attributable to a facility of a military department shall be credited to the funds available to the facility for the costs of identifying, quantifying, or valuing economic incentives for the reduction of emission of air pollutants. The amount credited shall be equal to the cost incurred in identifying, quantifying, or valuing the economic incentives sold.</content></paragraph> <subparagraph class="indent0 fontsize10"><num value="2">(2) </num><subparagraph class="inline"><num value="A">(A) </num><clause class="inline"><num value="i">(i) </num><content>If after crediting under paragraph (1) a balance remains, the amount of such balance shall be available to the Department of Defense for allocation by the Secretary to the military departments for programs, projects, and activities necessary for compliance with Federal environmental laws, including the purchase of economic incentives for the reduction of emission of air pollutants.</content></clause> <clause class="indent0 fontsize10"><num value="ii">(ii) </num><content>To the extent practicable, amounts allocated to the military departments under this subparagraph shall be made available to <page identifier="/us/stat/111/1693">111 STAT. 1693</page>the facilities that generated the economic incentives providing the basis for the amounts.</content></clause> </subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">(B) </num><content>The total amount allocated under this paragraph in a fiscal year from sales of economic incentives may not equal or exceed $500,000.</content></subparagraph> </subparagraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>If after crediting under paragraph (1) a balance remains in excess of an amount equal to the limitation set forth in paragraph (2)(B), the amount of the excess shall be covered over into the Treasury as miscellaneous receipts.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Funds credited under paragraph (1) or allocated under paragraph (2) shall be merged with the funds to which credited or allocated, as the case may be, and shall be available for the same purposes and for the same period as the funds with which merged.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>In this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>The term “base closure law” means the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>Section 2687 of title 10, United States Code.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>Title II of the Defense Authorization Amendments and Base Closure and Realignment Act (Public Law 100526; 10 U.S.C. 2687 note).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>The Defense Base Closure and Realignment Act of 1990 (part A of title XXIX of Public Law 101–510; 10 U.S.C. 2687 note).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The term “5” means any transferable economic incentives (including marketable permits and emission rights) necessary or appropriate to meet air quality requirements under the Clean Air Act (42 U.S.C. 7401 et seq.).</content></paragraph> </subsection> </section> </subtitle> <subtitle> <num value="D">Subtitle D—</num><heading>Depot-Level Activities</heading> <section> <num value="355">SEC. 355. </num><heading>DEFINITION OF DEPOT-LEVEL MAINTENANCE AND REPAIR.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Depot-Level Maintenance and Repair Defined</inline>.—</heading><content>Chapter 146 of title 10, United States Code, is amended by inserting before section 2461 the following new section: <quotedContent> <section> <num value="2460">“§ 2460. </num><heading>Definition of depot-level maintenance and repair</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>In this chapter, the term ‘depot-level maintenance and repair’ means (except as provided in subsection (b)) material maintenance or repair requiring the overhaul, upgrading, or rebuilding of parts, assemblies, or subassemblies, and the testing and reclamation of equipment as necessary, regardless of the source of funds for the maintenance or repair. The term includes (1) all aspects of software maintenance classified by the Department of Defense as of July 1, 1995, as depot-level maintenance and repair, and (2) interim contractor support or contractor logistics support (or any similar contractor support), to the extent that such support is for the performance of services described in the preceding sentence.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Exceptions</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The term does not include the procurement of major modifications or upgrades of weapon systems that are designed to improve program performance or the nuclear refueling of an aircraft carrier. A major upgrade program covered by this exception could continue to be performed by private or public sector activities.<page identifier="/us/stat/111/1694">111 STAT. 1694</page></content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The term also does not include the procurement of parts for safety modifications. However, the term does include the installation of parts for that purpose.”.</content></paragraph> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>Section 2469 of title 10, United States Code, is amended in subsections (a) and (b), by striking out “or repair” and inserting in lieu thereof “and repair”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Clerical Amendments</inline>.—</heading><paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The table of sections at the beginning of chapter 146 of title 10, United States Code, is amended by inserting before the item relating to section 2461 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“2460.</designator> <label>Definition of depot-level maintenance and repair.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The tables of chapters at the beginning of subtitle A, and at the beginning of part IV of subtitle A, of such title are amended by striking out the item relating to chapter 146 and inserting in lieu thereof the following new item: <quotedContent> <toc> <referenceItem><designator leaderChar="." leaderAlign="right">“146. Contracting for Performance of Civilian Commercial or Industrial Type Functions</designator> <target>2460”.</target></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> </section> <section> <num value="356">SEC. 356. </num><heading>CORE LOGISTICS CAPABILITIES OF DEPARTMENT OF DEFENSE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 2464 of title 10, United States Code, is amended to read as follows: <quotedContent> <section> <num value="2464">“§ 2464. </num><heading>Core logistics capabilities</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Necessity for Core Logistics Capabilities</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>It is essential for the national defense that the Department of Defense maintain a core logistics capability that is Government-owned and Government-operated (including Government personnel and Government-owned and Government-operated equipment and facilities) to ensure a ready and controlled source of technical competence and resources necessary to ensure effective and timely response to a mobilization, national defense contingency situations, and other emergency requirements.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The Secretary of Defense shall identify the core logistics capabilities described in paragraph (1) and the workload required to maintain those capabilities.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>The core logistics capabilities identified under paragraphs (1) and (2) shall include those capabilities that are necessary to maintain and repair the weapon systems and other military equipment (including mission-essential weapon systems or materiel not later than four years after achieving initial operational capability, but excluding systems and equipment under special access programs, nuclear aircraft carriers, and commercial items described in paragraph (5)) that are identified by the Secretary, in consultation with the Chairman of the Joint Chiefs of Staff, as necessary to enable the armed forces to fulfill the strategic and contingency plans prepared by the Chairman of the Joint Chiefs of Staff under section 153(a) of this title.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="4">“(4) </num><content>The Secretary of Defense shall require the performance of core logistics workloads necessary to maintain the core logistics capabilities identified under paragraphs (1), (2), and (3) at Government-owned, Government-operated facilities of the Department of Defense (including Government-owned, Government-operated facilities of a military department) and shall assign such facilities sufficient workload to ensure cost efficiency and technical competence in peacetime while preserving the surge capacity and reconstitution <page identifier="/us/stat/111/1695">111 STAT. 1695</page>capabilities necessary to support fully the strategic and contingency plans referred to in paragraph (3).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="5">“(5) </num><content>The commercial items covered by paragraph (3) are commercial items that have been sold or leased in substantial quantities to the general public and are purchased without modification in the same form that they are sold in the commercial marketplace, or with minor modifications to meet Federal Government requirements.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Limitation on Contracting</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Except as provided in paragraph (2), performance of workload needed to maintain a logistics capability identified by the Secretary under subsection (a)(2) may not be contracted for performance by non-Government personnel under the procedures and requirements of Office of Management and Budget Circular A–76 or any successor administrative regulation or policy (hereinafter in this section referred to as OMB Circular A–76).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The Secretary of Defense may waive paragraph (1) in the case of any such logistics capability and provide that performance of the workload needed to maintain that capability shall be considered for conversion to contractor performance in accordance with OMB Circular A–76. Any such waiver shall be made under regulations prescribed by the Secretary and shall be based on a determination by the Secretary that Government performance of the workload is no longer required for national defense reasons. Such regulations shall include criteria for determining whether Government performance of any such workload is no longer required for national defense reasons.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><subparagraph class="inline"><num value="A">(A) </num><content>A waiver under paragraph (2) may not take effect until the expiration of the first period of 30 days of continuous session of Congress that begins on or after the date on which the Secretary submits a report on the waiver to the Committee on Armed Services and the Committee on Appropriations of the Senate and the Committee on National Security and the Committee on Appropriations of the House of Representatives.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><chapeau>For the purposes of subparagraph (A)—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>continuity of session is broken only by an adjournment of Congress sine die; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>the days on which either House is not in session because of an adjournment of more than three days to a day certain are excluded in the computation of any period of time in which Congress is in continuous session.”.</content></clause> </subparagraph> </paragraph> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The item relating to such section at the beginning of chapter 146 of such title is amended to read as follows: <quotedContent> <toc> <referenceItem role="section"><designator>“2464.</designator> <label>Core logistics capabilities.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="357">SEC. 357. </num><heading>INCREASE IN PERCENTAGE OF DEPOT-LEVEL MAINTENANCE AND REPAIR THAT MAY BE CONTRACTED FOR PERFORMANCE BY NON-GOVERNMENT PERSONNEL.</heading> <content>Section 2466(a) of title 10, United States Code, is amended by striking out “40 percent” and inserting in lieu thereof “50 percent”.</content> </section> <section> <num value="358">SEC. 358. </num><heading>ANNUAL REPORT ON DEPOT-LEVEL MAINTENANCE AND REPAIR.</heading> <content>Subsection (e) of section 2466 of title 10, United States Code, is amended to read as follows:<page identifier="/us/stat/111/1696">111 STAT. 1696</page> <quotedContent> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Report</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Not later than February 1 of each year, the Secretary of Defense shall submit to Congress a report identifying, for each military department and Defense Agency, the percentage of the funds referred to in subsection (a) that were expended during the preceding fiscal year for performance of depot-level maintenance and repair workloads by the public and private sectors as required by section 2466 of this title.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>Not later than 90 days after the date on which the Secretary submits the annual report under paragraph (1), the Comptroller General shall submit to Congress the Comptroller General’s views on whether the Department of Defense has complied with the requirements of subsection (a) for the fiscal year covered by the report.”.</content></paragraph> </subsection> </quotedContent> </content></section> <section> <num value="359">SEC. 359. </num><heading>REQUIREMENT FOR USE OF COMPETITIVE PROCEDURES IN CONTRACTING FOR PERFORMANCE OF DEPOT-LEVEL MAINTENANCE AND REPAIR WORKLOADS FORMERLY PERFORMED AT CLOSED OR REALIGNED MILITARY INSTALLATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Application To Certain Workloads</inline>.—</heading><paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Chapter 146 of title 10, United States Code, is amended by inserting after section 2469 the following new section: <quotedContent> <num value="2469a">“§ 2469a. </num><heading>Use of competitive procedures in contracting for performance of depot-level maintenance and repair workloads formerly performed at certain military installations</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>In this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>The term ‘closed or realigned military installation’ means a military installation where a depot-level maintenance and repair facility was approved in 1995 for closure or realignment under the Defense Base Closure and Realignment Act of 1990 (part A of title XXIX of Public Law 101–510; 10 U.S.C. 2687 note).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The term ‘military installation’ includes a former military installation that was a military installation when it was approved in 1995 for closure or realignment under the Defense Base Closure and Realignment Act of 1990 and that has been closed or realigned under the Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>The terms ‘realignment’ and ‘realigned’ mean a decision under the Defense Base Closure and Realignment Act of 1990 that results in both a reduction and relocation of functions and civilian personnel positions.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Covered Depot-Level Maintenance and Repair Workloads</inline>.—</heading><chapeau>Except as provided in subsection (c), this section applies with respect to any depot-level maintenance and repair workload that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>was performed as of January 1, 1997, at a military installation that was approved in 1995 for closure or realignment under the Defense Base Closure and Realignment Act of 1990 and that has been closed or realigned under the Act; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>is proposed to be converted from performance by Department of Defense personnel to performance by a private sector source.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Exceptions</inline>.—</heading><chapeau>This section shall not apply with respect to—<page identifier="/us/stat/111/1697">111 STAT. 1697</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>a depot-level maintenance and repair workload that is to be consolidated to another military installation (other than a closed or realigned military installation) as a result of a base closure or realignment action or a decision made by the Secretary concerned or the Defense Depot Maintenance Council;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>a workload necessary to maintain a core logistics capability identified under section 2464 of this title; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>any contract originally entered into before the date of the enactment of the National Defense Authorization Act for Fiscal Year 1998.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Conditions and Solicitation</inline>.—</heading><chapeau>A solicitation of offers for the performance of any depot-level maintenance and repair workload described in subsection (b) may be issued, and a contract may be awarded pursuant to such a solicitation, only if the following conditions are met with respect to the contract and the solicitation specifically states the conditions:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>The source selection process used in the case of the solicitation and contract permits the consideration of offers submitted by private sector sources and offers submitted by public sector sources.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><chapeau>The source selection process used in the case of the solicitation and contract requires that, in the comparison of offers, there be taken into account—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>the fair market value (or if fair market value cannot be determined, the estimated book value) of any land, plant, or equipment from a military installation that is proposed by a private offeror to be used to meet a specific workload (whether these assets are provided to the offeror by a local redevelopment authority or by any other source approved by an official of the Department of Defense); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>the total estimated direct and indirect costs that will be incurred by the Department of Defense and the total estimated direct and indirect savings (including overhead) that will be derived by the Department of Defense.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>The cost standards used to determine the depreciation of facilities and equipment shall, to the maximum extent practicable, provide identical treatment to all public and private sector offerors.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>Any offeror, whether public or private, may offer to perform the workload at any location or locations selected by the offeror and to team with any other public or private entity to perform that workload at one or more locations, including a Center of Industrial and Technical Excellence designated under section 2474 of this title.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><content>No offeror may be given any preferential consideration for, or in any way be limited to, performing the workload in-place or at any other single location.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Contracts for Multiple Workloads</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>A solicitation may be issued for a single contract for the performance of multiple depot-level maintenance and repair workloads described in subsection (b) only if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>the Secretary of Defense determines in writing that the individual workloads cannot as logically and economically <page identifier="/us/stat/111/1698">111 STAT. 1698</page>be performed without combination by sources that are potentially qualified to submit an offer and to be awarded a contract to perform those individual workloads;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote><content>the Secretary submits to Congress a report setting forth the determination together with the reasons for the determination; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>the solicitation of offers for the contract is issued more than 60 days after the date on which the Secretary submits the report.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The Comptroller General shall review each report submitted under paragraph (1)(B) and, not later than 30 days after the report is submitted to Congress, shall submit to Congress the Comptroller General’s views regarding the determination of the Secretary that is set forth in the report, together with any other findings that the Comptroller General considers appropriate.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f) </num><heading><inline class="smallCaps">Competitive Procedures Required</inline>.—</heading><content>Section 2304(c)(7) of this title shall not be used as the basis for an exception to the requirement to use competitive procedures for any contract for a depot-level maintenance and repair workload described in subsection (b).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g) </num><heading><inline class="smallCaps">Reviews of Competitive Procedures</inline>.—</heading><chapeau>If a solicitation of offers for a contract for, or award of, any depot-level maintenance and repair workload described in subsection (b) is issued, the Comptroller General shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><chapeau>within 45 days after the issuance of the solicitation, review the solicitation and report to Congress on whether the solicitation—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>provides substantially equal opportunity for public and private offerors to compete for the contract without regard to the location at which the workload is to be performed; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>is in compliance with the requirements of this section and all applicable provisions of law and regulations; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><chapeau>within 45 days after any contract or award resulting from the solicitation is entered into or made, review the contract or award, including the contracting or award process, and report to Congress on whether—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><chapeau>the procedures used to conduct the competition—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>provided substantially equal opportunity for public and private offerors to compete for the contract without regard to the location at which the workload is to be performed; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>were in compliance with the requirements of this section and all applicable provisions of law and regulations;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>appropriate consideration was given to factors other than cost in the selection of the source for performance of the workload; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>the contract or award resulted in the lowest total cost to the Department of Defense for performance of the workload.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">“(h) </num><heading><inline class="smallCaps">Resolution of Workload Award Objections</inline>.—</heading><content>Any public or private entity may, pursuant to procedures established by the Secretary, object to a solicitation of offers under this section for the performance of any depot-level maintenance and repair workload, or the award or proposed award of any workload pursuant <page identifier="/us/stat/111/1699">111 STAT. 1699</page>to such a solicitation. The Secretary may designate a qualified individual or entity to review the objection; however, the Secretary shall not designate the Source Selection Authority or any individual from the same military department as the Source Selection Authority to review the objection. The Secretary shall take appropriate action to address any defect in the solicitation or award in the event that the objection is sustained.”.</content> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 2469 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“2469a.</designator> <label>Use of competitive procedures in contracting for performance of depot-level maintenance and repair workloads formerly performed at certain military installations.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Limitation Relating to Timing of Solicitation</inline>.—</heading><chapeau>The<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2469a">10 USC 2469a note</ref>.</p></sidenote> first solicitation of offers from private sector sources for the performance of a depot-level maintenance and repair workload described in subsection (b) of section 2469a of title 10, United States Code, as added by subsection (a), may be issued pursuant to such section only after the date that is 30 days after the latest of the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The date on which the Secretary of Defense publishes and submits to Congress a plan or Department of Defense directive that sets forth the specific procedures for the conduct of competitions among private and public sector entities for such depot-level maintenance and repair workloads.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The date on which the Secretary of Defense submits to Congress the report on allocation of workloads required under subsection (c).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The date on which the Comptroller General is required to submit the report to Congress under subsection (d).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Report of Allocation of Workload</inline>.—</heading><chapeau>Before any solicitation<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2469a">10 USC 2469a note</ref>.</p></sidenote> of offers for the performance by a private sector source of a depot-level maintenance and repair workload at a closed or realigned installation described in subsection (b) of section 2469a of title 10, United States Code, as added by subsection (a), is to be issued, the Secretary of Defense shall submit to Congress a report describing the allocation proposed by the Secretary of all workloads that were performed at that closed or realigned military installation (as denned in subsection (a) of such section) as of July 1, 1995, including—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the workloads that are considered to be core logistics functions under section 2464 of such title;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the workloads that are proposed to be transferred to a military installation other than a closed or realigned military installation;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>the workloads that are proposed to be included in the public-private competitions carried out under section 2469a of such title, and, if any of such workloads are to be combined for purposes of such a competition, the reasons for combining the workloads, together with a description of how the workloads are to be combined;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>any workload that has been determined within the Department of Defense as no longer being necessary;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>the proposed schedule for implementing the allocations covered by the report; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>the anticipated capacity utilization of the military installations and former military installations to which workloads are to be transferred, based on the maximum potential <page identifier="/us/stat/111/1700">111 STAT. 1700</page>capacity certified to the 1995 Defense Base Closure and Realignment Commission, after the transfers are completed (not taking into account any workloads that may be transferred as a result of a public-private competition carried out under section 2469a of such title, as described in paragraph (3)).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Review Regarding Award for C–5 Aircraft Workload</inline>.—</heading> <paragraph class="inline"><num value="1">(1) </num><chapeau>The Comptroller General shall conduct a review of the award for the performance of the C–5 aircraft workload that was made to Warner Robins Air Logistics Center. As part of the review, the Comptroller General shall—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><chapeau>determine whether the procedures used to conduct the competition—</chapeau> <clause class="indent2 fontsize10"><num value="i">(i) </num><content>provided substantially equal opportunity for public and private offerors to compete for the award without regard to the location at which the workload is to be performed; and</content></clause> <clause class="indent2 fontsize10"><num value="ii">(ii) </num><content>are in compliance with the requirements of all applicable provisions of law and the Federal Acquisition Regulation; and</content></clause> </subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>determine whether that award results in the lowest total cost to the Department of Defense for performance of the workload.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote><content>Not later than 60 days after the date of the enactment of this Act, the Comptroller General shall submit to Congress a report containing the results of the review.</content></paragraph> </subsection> </section> <section> <num value="360">SEC. 360. </num><heading>CLARIFICATION OF PROHIBITION ON MANAGEMENT OF DEPOT EMPLOYEES BY CONSTRAINTS ON PERSONNEL LEVELS.</heading> <content>Section 2472(a) of title 10, United States Code, is amended by striking out the first sentence and inserting in lieu thereof the following: “The civilian employees of the Department of Defense, including the civilian employees of the military departments and the Defense Agencies, who perform, or are involved in the performance of, depot-level maintenance and repair workloads may not be managed on the basis of any constraint or limitation in terms of man years, end strength, full-time equivalent positions, or maximum number of employees.”.</content> </section> <section> <num value="361">SEC. 361. </num><heading>CENTERS OF INDUSTRIAL AND TECHNICAL EXCELLENCE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Designation and Purpose</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Chapter 146 of title 10, United States Code, is amended by adding at the end the following new section: <quotedContent> <section> <num value="2474">“§ 2474. </num><heading>Centers of Industrial and Technical Excellence: designation; public-private partnerships</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Designation</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of Defense shall designate each depot-level activity of the military departments and the Defense Agencies (other than facilities approved for closure or major realignment under the Defense Base Closure and Realignment Act of 1990 (part A of title XXIX of Public Law 101–510; 10 U.S.C. 2687 note)) as a Center of Industrial and Technical Excellence in the recognized core competencies of the activity.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The Secretary shall establish a policy to encourage the Secretary of each military department and the head of each Defense Agency to reengineer industrial processes and adopt best-business practices at their depot-level activities in connection with their core competency requirements, so as to serve as recognized leaders <page identifier="/us/stat/111/1701">111 STAT. 1701</page>in their core competencies throughout the Department of Defense and in the national technology and industrial base (as defined in section 2500(1) of this title).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>The Secretary of a military department may conduct a pilot program, consistent with applicable requirements of law, to test any practices referred to in paragraph (2) that the Secretary determines could improve the efficiency and effectiveness of depot-level operations, improve the support provided by depot-level activities for the armed forces user of the services of such activities, and enhance readiness by reducing the time that it takes to repair equipment.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Public-Private Partnerships</inline>.—</heading><content>The Secretary of Defense shall enable Centers of Industrial and Technical Excellence to enter into public-private cooperative arrangements for the performance of depot-level maintenance and repair at such Centers and shall encourage the use of such arrangements to maximize the utilization of the capacity at such Centers. A public-private cooperative arrangement under this subsection shall be known as a ‘public-private partnership’.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Crediting of Amounts for Performance</inline>.—</heading><content>Amounts received by a Center for work performed under a public-private partnership shall be credited to the appropriation or fund, including a working-capital fund, that incurs the cost of performing the work.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Additional Work</inline>.—</heading><content>The policy required under subsection (a) shall include measures to enable a private sector entity that enters into a partnership arrangement under subsection (b) or leases excess equipment and facilities at a Center of Industrial and Technical Excellence pursuant to section 2471 of this title to perform additional work at the Center, subject to the limitations outlined in subsection (b) of such section, outside of the types of work normally assigned to the Center.”.</content> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of such chapter is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“2474.</designator> <label>Centers of Industrial and Technical Excellence: designation; public-private partnerships.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Lease of Excess Depot-Level Equipment and Facilities</inline>.—</heading><paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Section 2471(c) of such title is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Conformance With Authority Under Section 2667</inline>.—</heading><content>The provisions of subsection (d) of section 2667 of this title shall apply to this section in the same manner as such provisions are applicable under that section.”.</content> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Section 2667(d)(2) of such title is amended by inserting “<quotedText>or working capital fund</quotedText>” before “from which”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Reporting Requirement</inline>.—</heading><chapeau>Not later than March 1, 1999,<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2474">10 USC 2474 note</ref>.</p></sidenote> the Secretary of Defense shall submit to Congress a report on the policies established by the Secretary pursuant to section 2474 of title 10, United States Code, to implement the requirements of such section. The report shall include—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the details of any public-private partnerships entered into as of that date under subsection (b) of such section;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the details of any leases entered into as of that date under section 2471 of such title with authorized entities for dual-use (military and nonmilitary) purposes; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>the effect that the partnerships and leases had on capacity utilization, depot rate structures, and readiness.<page identifier="/us/stat/111/1702">111 STAT. 1702</page></content></paragraph> </subsection> </section> <section> <num value="362">SEC. 362. </num><heading>EXTENSION OF AUTHORITY FOR AVIATION DEPOTS AND NAVAL SHIPYARDS TO ENGAGE IN DEFENSE-RELATED PRODUCTION AND SERVICES.</heading> <content>Section 1425(e) of the National Defense Authorization Act for Fiscal Year 1991 (Public Law 101–510; 104 Stat. 1684) is amended by striking out “September 30, 1997” and inserting in lieu thereof “September 30, 1999”.</content> </section> <section> <num value="363">SEC. 363. </num><heading>REPEAL OF A CONDITIONAL REPEAL OF CERTAIN DEPOTLEVEL MAINTENANCE AND REPAIR LAWS AND A RELATED REPORTING REQUIREMENT.</heading> <content>Section 311 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104–106; 110 Stat. 247; 10 U.S.C. 2464 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/10/s2466">10 USC 2466 note</ref>.</p></sidenote>note) is amended by striking out subsections (f) and (g).</content> </section> <section> <num value="364">SEC. 364. </num><heading>PERSONNEL REDUCTIONS, ARMY DEPOTS PARTICIPATING IN ARMY WORKLOAD AND PERFORMANCE SYSTEM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Limitation</inline>.—</heading><content>Except as necessary to implement BRAC 1995 decisions at Red River Army Depot, Texas, and Letterkenny Army Depot, Pennsylvania, the Secretary of the Army may not initiate a reduction in force of civilian employees at the five Army depots participating in the demonstration and testing of the Army Workload and Performance System until after the date on which the Secretary submits to Congress a report certifying that the Army Workload and Performance System is fully operational.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">BRAC 1995 Decisions Defined</inline>.—</heading><content>The term “BRAC 1995 decisions” means the decisions to close or realign certain military installations resulting from the recommendations approved in 1995 under the Defense Base Closure and Realignment Act of 1990 (part A of title XXIX of Public Law 101–510; 10 U.S.C. 2687 note).</content> </subsection> </section> <section> <num value="365">SEC. 365. </num><heading>REPORT ON ALLOCATION OF CORE LOGISTICS ACTIVITIES AMONG DEPARTMENT OF DEFENSE FACILITIES AND PRIVATE SECTOR FACILITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than May 31, 1998, the Secretary of Defense shall submit to Congress a report on the allocation among facilities of the Department of Defense and facilities in the private sector of the logistics activities that are necessary to maintain and repair the weapon systems and other military equipment identified by the Secretary, in consultation with the Chairman of the Joint Chiefs of Staff, as being necessary to enable the Armed Forces to conduct a strategic or major theater war.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Elements</inline>.—</heading><chapeau>The report under subsection (a) shall set forth the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>The systems or equipment identified under subsection (a) that must be maintained and repaired in Government-owned, Government-operated facilities, using personnel and equipment of the Department, as a result of the Secretary’s determination that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the work involves unique or valuable workforce skills that should be maintained in the public sector in the national interest;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the base of private sector sources having the capability to perform the workloads includes industry sectors that are vulnerable to work stoppages;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><chapeau>the private sector sources having the capability to perform the workloads have insufficient workforce levels <page identifier="/us/stat/111/1703">111 STAT. 1703</page>or skills to perform the depot-level maintenance and repair workloads—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>in the quantity necessary, or as rapidly as the Secretary considers necessary, to enable the armed forces to fulfill the national military strategy; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>without a significant disruption or delay in the maintenance and repair of equipment;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>the need for performance of workloads is too infrequent, cyclical, or variable to sustain a reliable base of private sector sources having the workforce levels or skills to perform the workloads;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E) </num><content>the market conditions or workloads are insufficient to ensure that the price of private sector performance of the workloads can be controlled through competition or other means;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F) </num><content>private sector sources are not adequately responsive to the requirements of the Department for rapid, costeffective, and flexible response to surge requirements or other contingency situations, including changes in the mix or priority of previously scheduled workloads and reassignment of employees to different workloads without the requirement for additional contractual negotiations;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">(G) </num><content>private sector sources are less willing to assume responsibility for performing the workload as a result of the possibility of direct military or terrorist attack; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">(H) </num><content>private sector sources cannot maintain continuity of workforce expertise as a result of high rates of employee turnover.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>The systems or equipment identified under subsection (a) that must be maintained and repaired in Government-owned facilities, whether Government-operated or contractor-operated, as a result of the Secretary’s determination that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the work involves facilities, technologies, or equipment that are unique and sufficiently valuable that the facilities, technologies, or equipment must be maintained in the public sector in the national interest;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><chapeau>the private sector sources having the capability to perform the workloads have insufficient facilities, technology, or equipment to perform the depot-level maintenance and repair workloads—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>in the quantity necessary, or as rapidly as the Secretary considers necessary, to enable the armed forces to fulfill the national military strategy; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>without a significant disruption or delay in the maintenance and repair of equipment; or</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>the need for performance of workloads is too infrequent, cyclical, or variable to sustain a reliable base of private sector sources having the facilities, technology, or equipment to perform the workloads.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The systems or equipment identified under subsection (a) that may be maintained and repaired in private sector facilities.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The approximate percentage of the total maintenance and repair workload of the Department of Defense necessary for the systems and equipment identified under subsection (a) that would be performed at Department of Defense facilities, <page identifier="/us/stat/111/1704">111 STAT. 1704</page>and at private sector facilities, as a result of the determinations made for purposes of paragraphs (1), (2), and (3).</content></paragraph> </subsection> </section> <section> <num value="366">SEC. 366. </num><heading>REVIEW OF USE OF TEMPORARY DUTY ASSIGNMENTS FOR SHIP REPAIR AND MAINTENANCE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>Congress makes the following findings:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>In order to reduce the time that the crew of a naval vessel is away from the homeport of the vessel, the Navy seeks to perform ship repair and maintenance of the vessel at the homeport of the vessel whenever it takes six months or less to accomplish the work involved.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>At the same time, the Navy seeks to distribute ship repair and maintenance work among the Navy shipyards (known as to “level load”) in order to more fully utilize personnel resources.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>During periods when a Navy shipyard is not utilized to its capacity, the Navy sometimes sends workers at the shipyard, on a temporary duty basis, to perform ship repairs and maintenance at a homeport not having a Navy shipyard.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>This practice is a more efficient use of civilian employees who might otherwise not be fully employed on work assigned to Navy shipyards.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Comptroller General Review and Report</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>The Comptroller General shall review the Navy’s practice of using temporary duty assignments of personnel to perform ship maintenance and repair work at homeports not having Navy shipyards. The review shall include the following:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>An assessment of the rationale, conditions, and factors supporting the Navy’s practice.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>A determination of whether the practice is cost-effective.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><content>The factors affecting future requirements for, and the adherence to, the practice, together with an assessment of the factors.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Not later than May 1, 1998, the Comptroller General shall submit a report on the review to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives.</content></paragraph> </subsection> </section> <section> <num value="367">SEC. 367. </num><heading>SENSE OF CONGRESS REGARDING REALIGNMENT OF PERFORMANCE OF GROUND COMMUNICATION-ELECTRONIC WORKLOAD.</heading> <chapeau>It is the sense of Congress that the transfer of the ground communication-electronic workload to Tobyhanna Army Depot, Pennsylvania, in the realignment of the performance of such function should be carried out in adherence to the schedule prescribed for that transfer by the Defense Depot Maintenance Council on March 13, 1997, as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Transfer of 20 percent of the workload in fiscal year 1998.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Transfer of 40 percent of the workload in fiscal year 1999.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Transfer of 40 percent of the workload in fiscal year 2000.<page identifier="/us/stat/111/1705">111 STAT. 1705</page></content></paragraph> </section> </subtitle> <subtitle> <num value="E">Subtitle E—</num><heading>Commissaries and Nonappropriated Fund Instrumentalities</heading> <section> <num value="371">SEC. 371. </num><heading>REORGANIZATION OF LAWS REGARDING COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE, AND RECREATION ACTIVITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Description of Chapter</inline>.—</heading><paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The heading of chapter 147 of title 10, United States Code, is amended to read as follows: <quotedContent> <chapter> <num value="147">“CHAPTER 147—</num><heading>COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE, AND RECREATION ACTIVITIES”.</heading> </chapter> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The tables of chapters at the beginning of subtitle A, and at the beginning of part IV of subtitle A, of such title are amended by striking out the item relating to chapter 147 and inserting in lieu thereof the following new item: <quotedContent> <toc> <referenceItem><designator leaderChar="." leaderAlign="right">“147. Commissaries and Exchanges and Other Morale, Welfare, and Recreation Activities</designator> <target>2481”.</target></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Transfer and Redesignation of Unrelated Provisions</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Section 2481 of title 10, United States Code, is transferred to chapter 159 of such title, inserted after section 2685, and redesignated as section 2686.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Sections 2483 and 2490 of such title are transferred to the end of subchapter III of chapter 169 of such title and redesignated as sections 2867 and 2868, respectively.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><content>Section 2491 of such title is redesignated as section 2500.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Clerical Amendments</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The table of sections at the beginning of chapter 147 of title 10, United States Code, is amended by striking out the items relating to sections 2481, 2483, and 2490.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of chapter 159 of such title is amended by inserting after the item relating to section 2685 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“2686.</designator> <label>Utilities and services: sale; expansion and extension of systems and facilities.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The table of sections at the beginning of subchapter III of chapter 169 of such title is amended by adding at the end the following new items: <quotedContent> <toc> <referenceItem role="section"><designator>“2867.</designator> <label>Sale of electricity from alternate energy and cogeneration production facilities.</label></referenceItem> <referenceItem role="section"><designator>“2868.</designator> <label>Utility services: furnishing for certain buildings.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The table of sections at the beginning of subchapter I of chapter 148 of such title is amended by striking out the item relating to section 2491 and inserting in lieu thereof the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“2500.</designator> <label>Definitions.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>The tables of chapters at the beginning of subtitle A, and at the beginning of part IV of subtitle A, of such title are amended by striking out the item relating to chapter 148 and inserting in lieu thereof the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“148.</designator> <label>National Defense Technology and Industrial Base, Defense Reinvestment, and Defense Conversion 2500”.<page identifier="/us/stat/111/1706">111 STAT. 1706</page></label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Section 2534(d) of title 10, United States Code, is amended by striking out “section 2491(1)” both places it appears and inserting in lieu thereof “section 2500(1)”.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Section 2865(b)(2) of such title is amended by striking out “section 2483(b)(2)” and inserting in lieu thereof “section 2867(b)(2)”.</content></paragraph> </subsection> </section> <section> <num value="372">SEC. 372. </num><heading>MERCHANDISE AND PRICING REQUIREMENTS FOR COMMISSARY STORES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Authorized Commissary Merchandise Categories</inline>.—</heading><chapeau>Subsection (b) of section 2486 of title 10, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out the matter preceding paragraph (1) and inserting in lieu thereof the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Authorized Commissary Merchandise Categories</inline>.—</heading><content>Merchandise sold in, at, or by commissary stores may include items only in the following categories:”; and</content> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking out paragraph (11) and inserting in lieu thereof the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="11">“(11) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote><chapeau>Such other merchandise categories as the Secretary of Defense may prescribe, except that the Secretary shall submit to Congress, not later than March 1 of each year, a report describing—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>any addition of, or change in, a merchandise category proposed to be made under this paragraph during the one-year period beginning on that date; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>those additions and changes in merchandise categories actually made during the preceding one-year period.”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Codification of Uniform Sales Price Surcharge or Adjustment</inline>.—</heading><chapeau>Subsection (c) of such section is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>Uniform Sales Price Surcharge or Adjustment.—</quotedText>” after “(c)”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking out “in commissary stores.” and inserting in lieu thereof “in, at, or by commissary stores.”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by adding at the end the following new sentence: “Effective on the date of the enactment of the National Defense Authorization Act for Fiscal Year 1998, the uniform percentage shall be equal to five percent and may not be changed except by a law enacted after such date.”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Establishment of Sales Price; Congressional Notification</inline>.—</heading><content>Subsection (d) of such section is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Sales Price Establishment</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of Defense shall establish the sales price of each item of merchandise sold in, at, or by commissary stores at the level that will recoup the actual product cost of the item (consistent with this section and sections 2484 and 2685 of this title).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>Any change in the pricing policies for merchandise sold in, at, or by commissary stores shall not take effect until the Secretary of Defense submits written notice of the proposed change to Congress and a period of 90 days of continuous session of Congress expires following the date on which notice was received. For purposes of this paragraph, the continuity of a session of Congress is broken only by an adjournment of the Congress sine die, and the days on which either House is not in session because of an adjournment or recess of more than three days to a day certain are excluded in a computation of such 90-day period.”.<page identifier="/us/stat/111/1707">111 STAT. 1707</page></content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Special Rules for Certain Merchandise</inline>.—</heading><content>Such section is further amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f) </num><heading><inline class="smallCaps">Special Rules for Certain Merchandise</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Notwithstanding the general requirement that merchandise sold in, at, or by commissary stores be commissary store inventory, the Secretary of Defense may authorize the sale of items in the merchandise categories specified in paragraph (2) as noncommissary store inventory. Subsections (c) and (d) shall not apply to the pricing of such merchandise items.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><chapeau>The merchandise categories referred to in paragraph (1) are as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>Magazines and other periodicals.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>Tobacco products”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Clerical and Conforming Amendments</inline>.—</heading><chapeau>Such section is further amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subsection (a), by inserting “<quotedText>In General.—</quotedText>” after “(a)”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>in subsection (e)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by inserting “<quotedText>Special Rule for Brand-Name Commercial Items.—</quotedText>” after “(e)”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking out “in commissary stores” both places it appears and inserting in lieu thereof “in, at, or by commissary stores”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Report on Merchandise Categories</inline>.—</heading><content>Not later than 30<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2486">10 USC 2486 note</ref>.</p></sidenote> days after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report specifying the merchandise categories authorized for sale sold in, at, or by commissary stores pursuant to regulations prescribed under subsection (b)(11) of section 2486 of title 10, United States Code, as in effect before such date.</content> </subsection> </section> <section> <num value="373">SEC. 373. </num><heading>LIMITATION ON NONCOMPETITIVE PROCUREMENT OF BRAND-NAME COMMERCIAL ITEMS FOR RESALE IN COMMISSARY STORES.</heading> <content>Section 2486(e) of title 10, United States Code, as amended by section 372(e)(2), is further amended by adding at the end the following new sentence: “In determining whether a brand name commercial item is regularly sold outside of commissary stores, the Secretary shall consider only sales of the item on a regional or national basis by commercial grocery or other retail operations consisting of multiple stores.”.</content> </section> <section> <num value="374">SEC. 374. </num><heading>TREATMENT OF REVENUES DERIVED FROM COMMISSARY STORE ACTIVITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Treatment of Revenues</inline>.—</heading><content>Section 2685 of title 10, United States Code, is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Other Sources of Funds for Construction and Improvements</inline>.—</heading><chapeau>Revenues received by the Secretary of Defense from the following sources or activities of commissary store facilities shall be available for the purposes set forth in subsections (b), (c), and (d):</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>Sale of recyclable materials.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>Sale of excess and surplus property.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>License fees.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>Royalties.<page identifier="/us/stat/111/1708">111 STAT. 1708</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><content>Fees paid by sources of products in order to obtain favorable display of the products for resale, known as business related management fees.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendments</inline>.—</heading><chapeau>Such section is further amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subsection (a), by inserting “<quotedText><inline class="smallCaps">Adjustment or Surcharge Authorized</inline>.—</quotedText>” after “(a)”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in subsection (b), by inserting “<quotedText><inline class="smallCaps">Use for Construction and Improvement of Facilities</inline>.—</quotedText>” after “(b)”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>in subsection (c), by inserting “<quotedText><inline class="smallCaps">Advance Obligation</inline>.—</quotedText>” after “(c)”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>in subsection (d), by inserting “<quotedText><inline class="smallCaps">Cooperation With Nonappropriated Fund Instrumentalities</inline>.—</quotedText>” after “(d)”.</content></paragraph> </subsection> </section> <section> <num value="375">SEC. 375. </num><heading>MAINTENANCE, REPAIR, AND RENOVATION OF ARMED FORCES RECREATION CENTER, EUROPE.</heading> <content>Section 2247(b) of title 10, United States Code, is amended by striking out “real property maintenance, and” and inserting in lieu thereof “the maintenance, repair, or renovation of real property, and the”.</content> </section> <section> <num value="376">SEC. 376. </num><heading>PLAN FOR USE OF PUBLIC AND PRIVATE PARTNERSHIPS TO BENEFIT MORALE, WELFARE, AND RECREATION ACTIVITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Plan Required</inline>.—</heading><content>The Secretary of Defense shall prepare a plan containing a proposal regarding the advisability and feasibility of permitting nonappropriated fund instrumentalities of the Department of Defense to enter into leases, licensing agreements, concession agreements, and other contracts with private persons and State or local governments to facilitate the provision of facilities, goods, or services to authorized patrons of nonappropriated fund instrumentalities and to generate revenues for the Department of Defense to be used solely for the benefit of nonappropriated fund instrumentalities.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Recommendations for Scope of Plan</inline>.—</heading><chapeau>In developing the proposal under subsection (a), the Secretary shall include recommendations regarding the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The proposed criteria to be used to select goods or services suitable for provision to patrons of nonappropriated fund instrumentalities through a lease or other contractual arrangement.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The proposed mechanism to be used to assess the likely impact of such a lease or other contractual arrangement on private businesses in the locality that provide the same goods or services proposed to be provided under such a lease or other contractual arrangement.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The feasibility and desirability of authorizing persons who are not authorized patrons of nonappropriated fund instrumentalities to receive goods and services provided through such a lease or other contractual arrangement.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The proposed mechanism to be used to ensure that such a lease or contract will not be inconsistent with and will not adversely affect the mission of the Department of Defense or the nonappropriated fund instrumentality involved.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Submission of Plan</inline>.—</heading><content>Not later than March 1, 1998, the Secretary shall submit to Congress the plan required under subsection (a).<page identifier="/us/stat/111/1709">111 STAT. 1709</page></content> </subsection> </section> </subtitle> <subtitle> <num value="F">Subtitle F—</num><heading>Other Matters</heading> <section> <num value="381">SEC. 381. </num><heading>ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED FORCES AND DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Continuation of Department of Defense Program for Fiscal Year 1998</inline>.—</heading><chapeau>Of the amount authorized to be appropriated pursuant to section 301(5) for operation and maintenance for Defense-wide activities—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>$30,000,000 shall be available for providing educational agencies assistance (as defined in subsection (d)(1)) to local educational agencies; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>$5,000,000 shall be available for making educational agencies payments (as defined in subsection (a)(2)) to local educational agencies.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Notification</inline>.—</heading><chapeau>Not later than June 30, 1998, the Secretary of Defense shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>notify each local educational agency that is eligible for educational agencies assistance for fiscal year 1998 of that agency’s eligibility for such assistance and the amount of such assistance for which that agency is eligible; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>notify each local educational agency that is eligible for an educational agencies payment for fiscal year 1998 of that agency’s eligibility for such payment and the amount of the payment for which that agency is eligible.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Disbursement of Funds</inline>.—</heading><content>The Secretary of Defense shall disburse funds made available under paragraphs (1) and (2) of subsection (a) not later than 30 days after the date on which notification to the eligible local educational agencies is provided pursuant to subsection (b).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>In this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The term “educational agencies assistance” means assistance authorized under section 386(b) of the National Defense Authorization Act for Fiscal Year 1993 (Public Law 102–484; 20 U.S.C. 7703 note).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The term “educational agencies payments” means payments authorized under section 386(d) of the National Defense Authorization Act for Fiscal Year 1993 (Public Law 102–484; 20 U.S.C. 7703 note).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The term “local educational agency” has the meaning given that term in section 8013(9) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7713(9)).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Technical Correction Relating to Original Assistance Authority</inline>.—</heading><chapeau>Section 386(c)(1) of the National Defense Authorization Act for Fiscal Year 1993 (Public Law 102–484; 20 U.S.C. 7703 note) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out “section 8003(a)” and inserting in lieu thereof “section 8003(a)(1)”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking out “(20 U.S.C. 7703(a))” and inserting in lieu thereof “(20 U.S.C. 7703(a)(1))”.</content></paragraph> </subsection> </section> <section> <num value="382">SEC. 382. </num><heading>CENTER FOR EXCELLENCE IN DISASTER MANAGEMENT AND HUMANITARIAN ASSISTANCE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Establishment and Operation of Center</inline>.—</heading><paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Chapter 7 of title 10, United States Code, is amended by adding at the end the following new section:<page identifier="/us/stat/111/1710">111 STAT. 1710</page> <quotedContent> <section> <num value="182">“§ 182. </num><heading>Center for Excellence in Disaster Management and Humanitarian Assistance</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Establishment</inline>.—</heading><content>The Secretary of Defense may operate a Center for Excellence in Disaster Management and Humanitarian Assistance (in this section referred to as the ‘Center’).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Missions</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Center shall be used to provide and facilitate education, training, and research in civil-military operations, particularly operations that require international disaster management and humanitarian assistance and operations that require coordination between the Department of Defense and other agencies.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The Center shall be used to make available high-quality disaster management and humanitarian assistance in response to disasters.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><chapeau>The Center shall be used to provide and facilitate education, training, interagency coordination, and research on the following additional matters:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>Management of the consequences of nuclear, biological, and chemical events.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>Management of the consequences of terrorism.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">“(C) </num><content>Appropriate roles for the reserve components in the management of such consequences and in disaster management and humanitarian assistance in response to natural disasters.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="D">“(D) </num><content>Meeting requirements for information in connection with regional and global disasters, including the use of advanced communications technology as a virtual library.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="E">“(E) </num><content>Tropical medicine, particularly in relation to the medical readiness requirements of the Department of Defense.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="4">“(4) </num><content>The Center shall develop a repository of disaster risk indicators for the Asia-Pacific region.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="5">“(5) </num><content>The Center shall perform such other missions as the Secretary of Defense may specify.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Joint Operation With Educational Institution Authorized</inline>.—</heading><content>The Secretary of Defense may enter into an agreement with appropriate officials of an institution of higher education to provide for joint operation of the Center. Any such agreement shall provide for the institution to furnish necessary administrative services for the Center, including administration and allocation of funds.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Acceptance of Donations</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Except as provided in paragraph (2), the Secretary of Defense may accept, on behalf of the Center, donations to be used to defray the costs of the Center or to enhance the operation of the Center. Such donations may be accepted from any agency of the Federal Government, any State or local government, any foreign government, any foundation or other charitable organization (including any that is organized or operates under the laws of a foreign country), or any other private source in the United States or a foreign country.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><chapeau>The Secretary may not accept a donation under paragraph (1) if the acceptance of the donation would compromise or appear to compromise—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>the ability of the Department of Defense, any employee of the Department, or members of the armed forces, to carry out any responsibility or duty of the Department in a fair and objective manner; or</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>the integrity of any program of the Department of Defense or of any person involved in such a program.<page identifier="/us/stat/111/1711">111 STAT. 1711</page></content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>The Secretary shall prescribe written guidance setting forth the criteria to be used in determining whether or not the acceptance of a foreign donation would have a result described in paragraph (2).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="4">“(4) </num><content>Funds accepted by the Secretary under paragraph (1) as a donation on behalf of the Center shall be credited to appropriations available to the Department of Defense for the Center. Funds so credited shall be merged with the appropriations to which credited and shall be available for the Center for the same purposes and the same period as the appropriations with which merged.”.</content></paragraph> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of such chapter is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“182.</designator> <label>Center for Excellence in Disaster Management and Humanitarian Assistance.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Funding for Fiscal Year 1998</inline>.—</heading><content>Of the funds authorized to be appropriated pursuant to section 301(5) for operation and maintenance for Defense-wide activities, $5,000,000 shall be available for the operation of the Center for Excellence in Disaster Management and Humanitarian Assistance established under section 182 of title 10, United States Code, as added by subsection (a).</content> </subsection> </section> <section> <num value="383">SEC. 383. </num><heading>APPLICABILITY OF FEDERAL PRINTING REQUIREMENTS TO DEFENSE AUTOMATED PRINTING SERVICE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>Subchapter I of chapter 8 of title 10, United States Code, is amended by adding at the end the following new section: <quotedContent> <section> <num value="195">“§ 195. </num><heading>Defense Automated Printing Service: applicability of Federal printing requirements</heading> <content>“The Defense Automated Printing Service shall comply fully with the requirements of section 501 of title 44 relating to the production and procurement of printing, binding, and blank-book work.”.</content> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections at the beginning of such subchapter is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“195.</designator> <label>Defense Automated Printing Service: applicability of Federal printing requirements.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="384">SEC. 384. </num><heading>STUDY AND NOTIFICATION REQUIREMENTS FOR CONVERSION OF COMMERCIAL AND INDUSTRIAL TYPE FUNCTIONS TO CONTRACTOR PERFORMANCE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Additional Notification Requirement</inline>.—</heading><content>Subsection (a)(1) of section 2461 of title 10, United States Code, is amended by inserting before the semicolon the following: “and the anticipated length and cost of the study”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Notification of Conversion Decision</inline>.—</heading><content>Subsection (b) of such section is amended by adding at the end the following new sentence: “The notification shall include the timetable for completing conversion of the function to contractor performance.”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Waiver for Small Functions</inline>.—</heading><content>Subsection (d) of such section is amended by striking out “45 or fewer” and inserting in lieu thereof “20 or fewer”.<page identifier="/us/stat/111/1712">111 STAT. 1712</page></content> </subsection> </section> <section> <num value="385">SEC. 385. </num><heading>COLLECTION AND RETENTION OF COST INFORMATION DATA ON CONVERTED SERVICES AND FUNCTIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Collection and Retention Required</inline>.—</heading><content>Section 2463 of title 10, United States Code, is amended to read as follows: <quotedContent> <section> <num value="2463">“§ 2463. </num><heading>Collection and retention of cost information data on converted services and functions</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Requirements in Connection With Conversion to Contractor Performance</inline>.—</heading><content>With respect to each contract converting the performance of a service or function of the Department of Defense to contractor performance (and any extension of such a contract), the Secretary of Defense shall collect, during the term of the contract or extension, but not to exceed five years, cost information data regarding performance of the service or function by private contractor employees.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Requirements in Connection With Return to Employee Performance</inline>.—</heading><chapeau>Whenever the performance of a commercial or industrial type activity of the Department of Defense that is being performed by 50 or more employees of a private contractor is changed to performance by civilian employees of the Department of Defense, the Secretary of Defense shall collect, for a five-year period, cost information data comparing—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>the estimated costs of continued performance of such activity by private contractor employees; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>the costs of performance of such activity by civilian employees of the Department of Defense.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Retention of Information</inline>.—</heading><content>With regard to the conversion to or from contractor performance of a particular service or function of the Department of Defense, the Secretary of Defense shall provide for the retention of information collected under this section for at least a 10-year period beginning at the end of the final year in which the information is collected.”.</content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The item relating to such section in the table of sections at the beginning of chapter 146 of title 10, United States Code, is amended to read as follows: <quotedContent> <toc> <referenceItem role="section"><designator>“2463.</designator> <label>Collection and retention of cost information data on converted services and functions.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="386">SEC. 386. </num><heading>FINANCIAL ASSISTANCE TO SUPPORT ADDITIONAL DUTIES ASSIGNED TO ARMY NATIONAL GUARD.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Authority</inline>.—</heading><content>Chapter 1 of title 32, United States Code, is amended by adding at the end the following new section: <quotedContent> <section> <num value="113">“§ 113. </num><heading>Federal financial assistance for support of additional duties assigned to the Army National Guard</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Authority</inline>.—</heading><content>The Secretary of the Army may provide financial assistance to a State to support activities carried out by the Army National Guard of the State in the performance of duties that the Secretary has assigned, with the consent of the Chief of the National Guard Bureau, to the Army National Guard of the State. The Secretary shall determine the amount of the assistance that is appropriate for the purpose.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Covered Activities</inline>.—</heading><content>Activities supported under this section may include only those activities that are carried out by the Army National Guard in the performance of responsibilities of the Secretary of the Army under paragraphs (6), (10), and (11) of section 3013(b) of title 10.<page identifier="/us/stat/111/1713">111 STAT. 1713</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Disbursement Through National Guard Bureau</inline>.—</heading><content>The Secretary of the Army shall disburse any contribution under this section through the Chief of the National Guard Bureau.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Availability of Funds</inline>.—</heading><content>Funds appropriated for the Army for a fiscal year are available for providing financial assistance under this section in support of activities carried out by the Army National Guard during that fiscal year.”.</content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections at the beginning of such chapter is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“113.</designator> <label>Federal financial assistance for support of additional duties assigned to the Army National Guard.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="387">SEC. 387. </num><heading>COMPETITIVE PROCUREMENT OF PRINTING AND DUPLICATION SERVICES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Extension of Requirement To Use Private-Sector Sources</inline>.—</heading><chapeau>Subsection (a) of section 351 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104–106; 110 Stat. 266) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out “and 1997” and inserting in lieu thereof “through 1998”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking out “Defense Printing Service” and inserting in lieu thereof “Defense Automated Printing Service”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Surcharge for Services</inline>.—</heading><content>Such section is further amended by adding at the end the following new subsection: <quotedContent> <num value="d">“(d) </num><heading><inline class="smallCaps">Conditions on Imposition of Surcharge</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Any surcharge imposed by the Defense Automated Printing Service on printing and duplication services for the Department of Defense shall be based on direct services provided by the Defense Automated Printing Service and reflect the costs incurred by the Defense Automated Printing Service, as described in its annual budget.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The Defense Automated Printing Service may not impose a surcharge on any printing and duplication service for the Department of Defense that is procured from a source outside of the Department.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Authority To Procure Services From Government Printing Office</inline>.—</heading><content><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s195">10 USC 195 note</ref>.</p></sidenote>Consistent with section 501 of title 44, United States Code, the Secretary of a military department or head of a Defense Agency may contract directly with the Government Printing Office for printing and duplication services otherwise available through the Defense Automated Printing Service.</content> </subsection> </section> <section> <num value="388">SEC. 388. </num><heading>CONTINUATION AND EXPANSION OF DEMONSTRATION PROGRAM TO IDENTIFY OVERPAYMENTS MADE TO VENDORS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Scope of Program</inline>.—</heading><chapeau>Section 354 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104–106; 110 Stat. 268; 10 U.S.C. 2461 note) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subsection (a), by striking out the second sentence; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in subsection (b)(1), by striking out “of the Defense Logistics Agency that relate to (at least) fiscal years 1993, 1994, and 1995” and inserting in lieu thereof “relating to fiscal years after fiscal year 1993 of the working-capital funds and industrial, commercial, and support type activities managed through the Defense Business Operations Fund, except the Defense Logistics Agency to the extent such records have already been audited”.<page identifier="/us/stat/111/1714">111 STAT. 1714</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Collection Method; Contractor Payments</inline>.—</heading><content>Such section is further amended by striking out subsections (d) and (e) and inserting in lieu thereof the following new subsections: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Collection Method</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>In the case of an overpayment to a vendor identified under the demonstration program, the Secretary shall consider the use of the procedures specified in section 32.611 of the Federal Acquisition Regulation, regarding a setoff against existing invoices for payment to the vendor, as the first method by which the Department seeks to recover the amount of the overpayment (and any applicable interest and penalties) from the vendor.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The Secretary of Defense shall be solely responsible for notifying a vendor of an overpayment made to the vendor and identified under the demonstration program and for recovering the amount of the overpayment (and any applicable interest and penalties) from the vendor.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Fees for Contractor</inline>.—</heading><content>The Secretary shall pay to the contractor under the contract entered into under the demonstration program an amount not to exceed 25 percent of the total amount recovered by the Department (through the collection of overpayments and the use of setoffs) solely on the basis of information obtained as a result of the audits performed by the contractor under the program. When an overpayment is recovered through the use of a setoff, amounts for the required payment to the contractor shall be derived from funds available to the working-capital fund or industrial, commercial, or support type activity for which the overpayment is recovered.”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2461">10 USC 2461 note</ref>.</p></sidenote><heading><inline class="smallCaps">GAO Review</inline>.—</heading><chapeau>Not later than December 31, 1998, the Comptroller General shall submit to Congress a report containing the results of a review by the Comptroller General of the demonstration program conducted under section 354 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104–106; 10 U.S.C. 2461 note). In the review, the Comptroller General shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>assess the success of the methods used in the demonstration program to identify overpayments made to vendors;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>consider the types of overpayments identified and the feasibility of avoiding such overpayments through contract adjustments;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>determine the total amount of overpayments recovered under the demonstration program; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>develop recommendations for improving the process by which overpayments are recovered by the Department of Defense.</content></paragraph> </subsection> </section> <section> <num value="389">SEC. 389. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2461">10 USC 2461 note</ref>.</p></sidenote><heading>DEVELOPMENT OF STANDARD FORMS REGARDING PERFORMANCE WORK STATEMENT AND REQUEST FOR PROPOSAL FOR CONVERSION OF CERTAIN OPERATIONAL FUNCTIONS OF MILITARY INSTALLATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Standardization of Requirements</inline>.—</heading><content>The Secretary of Defense is authorized and encouraged to develop standard forms (to be known as a “standard performance work statement” and a “standard request for proposal”) for use in the consideration for conversion to contractor performance of commercial services and functions at military installations. A separate standard form shall be developed for each service and function.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Relationship to OMB Requirements</inline>.—</heading><content>A standard performance work statement or a standard request for proposal <page identifier="/us/stat/111/1715">111 STAT. 1715</page>developed tinder subsection (a) must fulfill the basic requirements of the performance work statement or request for proposal otherwise required under the procedures and requirements of Office of Management and Budget Circular A–76 (or any successor administrative regulation or policy) in effect at the time the standard form will be used.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Priority Development of Certain Forms</inline>.—</heading><content>In developing standard performance work statements and standard requests for proposal, the Secretary shall give first priority to those commercial services and functions that the Secretary determines have been successfully converted to contractor performance on a repeated basis.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Incentive for Use</inline>.—</heading><content>Beginning not later than October 1, 1998, if a standard performance work statement or a standard request for proposal is developed under subsection (a) for a particular service and function, the standard form may be used in lieu of the performance work statement or request for proposal otherwise required under the procedures and requirements of Office of Management and Budget Circular A–76 in connection with the consideration for conversion to contractor performance of that service or function at a military installation.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Exclusion of Multifunction Conversion</inline>.—</heading><content>If a commercial service or function for which a standard form is developed under subsection (a) is combined with another service or function (for which such a form has not yet been developed) for purposes of considering the services and functions at the military installation for conversion to contractor performance, a standard performance work statement or a standard request for a proposal developed under subsection (a) may not be used in the conversion process in lieu of the procedures and requirements of Office of Management and Budget Circular A–76.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Effect on Other Laws</inline>.—</heading><content>Nothing in this section shall be construed to supersede any other requirements or limitations, specifically contained in chapter 146 of title 10, United States Code, on the conversion to contractor performance of activities performed by civilian employees of the Department of Defense.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num><heading><inline class="smallCaps">GAO Report</inline>.—</heading><content>Not later than June 1, 1999, the Secretary of Defense shall submit to Congress a report reviewing the implementation of this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h) </num><heading><inline class="smallCaps">Military Installation Defined</inline>.—</heading><content>For purposes of this section, the term “military installation” means a base, camp, post, station, yard, center, homeport facility for any ship, or other activity under the jurisdiction of the Department of Defense, including any leased facility.</content> </subsection> </section> <section> <num value="390">SEC. 390. </num><heading>BASE OPERATIONS SUPPORT FOR MILITARY INSTALLATIONS ON GUAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Contractor Use of Nonimmigrant Aliens</inline>.—</heading><content>Each contract for base operations support to be performed on Guam shall contain a condition that work under the contract may not be performed by any alien who is issued a visa or otherwise provided nonimmigrant status under section 101(a)(15)(H)(ii) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(H)(ii)).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Application of Section</inline>.—</heading><content>This section shall apply to contracts entered into, amended, or otherwise modified on or after the date of the enactment of this Act.<page identifier="/us/stat/111/1716">111 STAT. 1716</page></content> </subsection> </section> <section> <num value="391">SEC. 391. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2304">10 USC 2304 note</ref>.</p></sidenote> <heading>WARRANTY CLAIMS RECOVERY PILOT PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Pilot Program Required</inline>.—</heading><content>The Secretary of Defense may carry out a pilot program to use commercial sources of services to improve the collection of Department of Defense claims under aircraft engine warranties.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Contracts</inline>.—</heading><chapeau>Exercising the authority provided in section 3718 of title 31, United States Code, the Secretary of Defense may enter into contracts under the pilot program to provide for the following services:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Collection services.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Determination of amounts owed the Department of Defense for repair of aircraft engines for conditions covered by warranties.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Identification and location of the sources of information that are relevant to collection of Department of Defense claims under aircraft engine warranties, including electronic data bases and document filing systems maintained by the Department of Defense or by the manufacturers and suppliers of the aircraft engines.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Services to define the elements necessary for an effective training program to enhance and improve the performance of Department of Defense personnel in collecting and organizing documents and other information that are necessary for efficient filing, processing, and collection of Department of Defense claims under aircraft engine warranties.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Contractor Fee</inline>.—</heading><content>Under the authority provided in section 3718(d) of title 31, United States Code, a contract entered into under the pilot program shall provide for the contractor to be paid, out of the amount recovered by the contractor under the program, such percentages of the amount recovered as the Secretary of Defense determines appropriate.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Retention of Recovered Funds</inline>.—</heading><content>Subject to any obligation to pay a fee under subsection (c), any amount collected for the Department of Defense under the pilot program for a repair of an aircraft engine for a condition covered by a warranty shall be credited to an appropriation available for repair of aircraft engines for the fiscal year in which collected and shall be available for the same purposes and same period as the appropriation to which credited.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Regulations</inline>.—</heading><content>The Secretary of Defense shall prescribe regulations to carry out this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Termination of Authority</inline>.—</heading><content>The pilot program shall terminate on September 30, 1999, and contracts entered into under this section shall terminate not later than that date.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num><heading><inline class="smallCaps">Reporting Requirements</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>Not later than January 1, 2000, the Secretary of Defense shall submit to Congress a report on the pilot program. The report shall include the following:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>The number of contracts entered into under the program.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>The extent to which the services provided under the contracts resulted in financial benefits for the Federal Government.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><content>Any additional comments and recommendations that the Secretary considers appropriate regarding use of commercial sources of services for collection of Department of Defense claims under aircraft engine warranties.<page identifier="/us/stat/111/1717">111 STAT. 1717</page></content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>Not later than March 1, 2000, the Comptroller General shall submit to Congress a report containing the results of a review by the Comptroller General of the pilot program. In the review, the Comptroller General shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>assess the success of the methods used in the demonstration program to identify and recover Department of Defense claims under aircraft engine warranties;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>determine the total amount recovered by the Department of Defense under the pilot program;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>evaluate the report prepared by the Secretary under paragraph (1); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>develop recommendations for improving the process by which warranty claims are recovered by the Department of Defense.</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="392">SEC. 392. </num><heading>PROGRAM TO INVESTIGATE FRAUD, WASTE, AND ABUSE WITHIN DEPARTMENT OF DEFENSE.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s113">10 USC 113 note</ref>.</p></sidenote> <content>The Secretary of Defense shall maintain a specific coordinated program for the investigation of evidence of fraud, waste, and abuse within the Department of Defense, particularly fraud, waste, and abuse regarding finance and accounting matters.</content> </section> <section> <num value="393">SEC. 393. </num><heading>MULTITECHNOLOGY AUTOMATED READER CARD DEMONSTRATION PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Program Required</inline>.—</heading><content>The Secretary of the Navy shall carry out a program to demonstrate expanded use of multitechnology automated reader cards throughout the Navy and the Marine Corps. The demonstration program shall include demonstration of the use of the so-called “smartship” technology of the ship-to-shore work load/off load program of the Navy.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Period of Program</inline>.—</heading><content>The Secretary shall carry out the demonstration program for two years beginning not later than January 1, 1998.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than 90 days after termination of the demonstration program, the Secretary shall submit to Congress a report on the results of the program.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Funding</inline>.—</heading><content>Of the amount authorized to be appropriated pursuant to section 301(2) for operation and maintenance for the Navy, $36,000,000 shall be available for the demonstration program under this section, of which $6,300,000 shall be available for demonstration of the use of the so-called “smartship” technology of the ship-to-shore work load/off load program of the Navy.</content> </subsection> </section> <section> <num value="394">SEC. 394. </num><heading>REDUCTION IN OVERHEAD COSTS OF INVENTORY CONTROL POINTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Report and Plan Required</inline>.—</heading><content>Not later than March 1, 1998, the Secretary of Defense shall submit to Congress a report containing a plan to reduce overhead costs of the supply management activities of the Defense Logistics Agency and the military departments (known as Inventory Control Points) so that the overhead costs for each fiscal year after fiscal year 2000 do not exceed eight percent of net sales at standard price by Inventory Control Points during that year.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Additional Report Requirement</inline>.—</heading><chapeau>In addition to the plan, the report shall include the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>An identification of inherently governmental, core and noncore functions in Inventory Control Points and Distribution Depots.<page identifier="/us/stat/111/1718">111 STAT. 1718</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>A description of efforts, other than prime vendor and virtual prime vendor, underway or proposed to improve the efficiency, incentives, and accountability in Department of Defense supply, inventory and warehousing services and rates.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>An identification and description of the benchmarks established in the warehousing, distribution, and supply functions of the Department and the relationship of the benchmarks to performance measurement methods used in the private sector.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>A description of the outcome-oriented performance measures that are currently being used to evaluate Inventory Control Points and Distribution Depots.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>A specification of any legislative, regulatory, or operational impediments to achieving the requirement in subsection (a) and implementing best business practices in the warehousing, distribution, and supply functions of the Department.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>The term “overhead costs” means the total expenses of the Inventory Control Points, excluding—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>annual materiel costs; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>military and civilian personnel related costs, defined as personnel compensation and benefits under the March 1996 Department of Defense Financial Management Regulations, Volume 2A, Chapter 1, Budget Account Title File (Object Classification Name/Code), object classifications 200, 211, 220, 221, 222, and 301.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The term “net sales at standard price” has the meaning given that term in the March 1996 Department of Defense Financial Management Regulations, Volume 2B, Chapter 9, and displayed in “Exhibit Fund—14 Revenue and Expenses” for the supply management business areas.</content></paragraph> </subsection> </section> <section> <num value="395">SEC. 395. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2458">10 USC 2458 note</ref>.</p></sidenote> <heading>INVENTORY MANAGEMENT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Development and Submission of Schedule</inline>.—</heading><content>Not later than 180 days after the date of the enactment of this Act, the Director of the Defense Logistics Agency shall develop and submit to Congress a schedule for implementing within the agency, for the supplies and equipment described in subsection (b), inventory practices identified by the Director as being the best commercial inventory practices for the acquisition and distribution of such supplies and equipment consistent with military requirements. The schedule shall provide for the implementation of such practices to be completed not later than three years after the date of the enactment of this Act.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Covered Supplies and Equipment</inline>.—</heading><chapeau>Subsection (a) shall apply to the following types of supplies and equipment for the Department of Defense:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Medical and pharmaceutical.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Subsistence.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Clothing and textiles.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Commercially available electronics.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Construction.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>Industrial.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>Automotive.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>Fuel.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><content>Facilities maintenance.<page identifier="/us/stat/111/1719">111 STAT. 1719</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Definition</inline>.—</heading><content>For purposes of this section, the term “best commercial inventory practice” includes a so-called prime vendor arrangement and any other practice that the Director determines will enable the Defense Logistics Agency to reduce inventory levels and holding costs while improving the responsiveness of the supply system to user needs.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Report on Expansion of Covered Supplies and Equipment</inline>.—</heading><content>Not later than March 1, 1998, the Comptroller General shall submit to Congress a report evaluating the feasibility of expanding the list of covered supplies and equipment under subsection (b) to include repairable items.</content> </subsection> </section> </subtitle> <num value="IV">TITLE IV—</num><heading>MILITARY PERSONNEL AUTHORIZATIONS</heading> <toc> <referenceItem role="subtitle"><designator>Subtitle A—</designator><label>Active Forces</label></referenceItem> <referenceItem role="section"><designator>Sec. 401.</designator> <label>End strengths for active forces.</label></referenceItem> <referenceItem role="section"><designator>Sec. 402.</designator> <label>Permanent end strength levels to support two major regional contingencies.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle B—</designator><label>Reserve Forces</label></referenceItem> <referenceItem role="section"><designator>Sec. 411.</designator> <label>End strengths for Selected Reserve.</label></referenceItem> <referenceItem role="section"><designator>Sec. 412.</designator> <label>End strengths for Reserves on active duty in support of the Reserves.</label></referenceItem> <referenceItem role="section"><designator>Sec. 413.</designator> <label>End strengths for military technicians (dual status).</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle C—</designator><label>Authorization of Appropriations</label></referenceItem> <referenceItem role="section"><designator>Sec. 421.</designator> <label>Authorization of appropriations for military personnel.</label></referenceItem> </toc> <subtitle> <num value="A">Subtitle A—</num><heading>Active Forces</heading> <section> <num value="401">SEC. 401. </num><heading>END STRENGTHS FOR ACTIVE FORCES.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s115">10 USC 115 note</ref>.</p></sidenote> <chapeau>The Armed Forces are authorized strengths for active duty personnel as of September 30, 1998, as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The Army, 495,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The Navy, 390,802.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The Marine Corps, 174,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The Air Force, 371,577.</content></paragraph> </section> <section> <num value="402">SEC. 402. </num><heading>PERMANENT END STRENGTH LEVELS TO SUPPORT TWO MAJOR REGIONAL CONTINGENCIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Change in Permanent End Strengths</inline>.—</heading><chapeau>Subsection (b) of section 691 of title 10, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in paragraph (2), by striking out “395,000” and inserting in lieu thereof “390,802”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in paragraph (4), by striking out “381,000” and inserting in lieu thereof “371,577”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Increased Flexibility for the Army</inline>.—</heading><content>Subsection (e) of such section is amended by inserting “<quotedText>or, in the case of the Army, by not more than 1.5 percent</quotedText>” before the period at the end.</content> </subsection> </section> </subtitle> <subtitle> <num value="B">Subtitle B—</num><heading>Reserve Forces</heading> <section> <num value="411">SEC. 411. </num><heading>END STRENGTHS FOR SELECTED RESERVE.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s12001">10 USC 12001 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>The Armed Forces are authorized strengths for Selected Reserve personnel of the reserve components as of September 30, 1998, as follows:<page identifier="/us/stat/111/1720">111 STAT. 1720</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The Army National Guard of the United States, 361,516.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The Army Reserve, 208,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The Naval Reserve, 94,294.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The Marine Corps Reserve, 42,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>The Air National Guard of the United States, 108,002.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>The Air Force Reserve, 73,447.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>The Coast Guard Reserve, 8,000.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Adjustments</inline>.—</heading><chapeau>The end strengths prescribed by subsection (a) for the Selected Reserve of any reserve component shall be proportionately reduced by—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the total authorized strength of units organized to serve as units of the Selected Reserve of such component which are on active duty (other than for training) at the end of the fiscal year, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the total number of individual members not in units organized to serve as units of the Selected Reserve of such component who are on active duty (other than for training or for unsatisfactory participation in training) without their consent at the end of the fiscal year.</content></paragraph> <continuation class="indent0 fontsize10">Whenever such units or such individual members are released from active duty during any fiscal year, the end strength prescribed for such fiscal year for the Selected Reserve of such reserve component shall be proportionately increased by the total authorized strengths of such units and by the total number of such individual members.</continuation> </subsection> </section> <section> <num value="412">SEC. 412. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s12001">10 USC 12001 note</ref>.</p></sidenote> <heading>END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN SUPPORT OF THE RESERVES.</heading> <chapeau>Within the end strengths prescribed in section 411(a), the reserve components of the Armed Forces are authorized, as of September 30, 1998, the following number of Reserves to be serving on full-time active duty or full-time duty, in the case of members of the National Guard, for the purpose of organizing, administering, recruiting, instructing, or training the reserve components:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The Army National Guard of the United States, 22,310.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The Army Reserve, 11,500.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The Naval Reserve, 16,136.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The Marine Corps Reserve, 2,559.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>The Air National Guard of the United States, 10,671.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>The Air Force Reserve, 867.</content></paragraph> </section> <section> <num value="413">SEC. 413. </num><heading>END STRENGTHS FOR MILITARY TECHNICIANS (DUAL STATUS).</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s115">10 USC 115 note</ref>.</p></sidenote><heading><inline class="smallCaps">Authorization for Fiscal Year 1998</inline>.—</heading><chapeau>The minimum number of military technicians (dual status) as of the last day of fiscal year 1998 for the reserve components of the Army and the Air Force (notwithstanding section 129 of title 10, United States Code) shall be the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>For the Army Reserve, 5,503.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>For the Army National Guard of the United States, 23,125.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>For the Air Force Reserve, 9,802.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>For the Air National Guard of the United States, 22,853.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Requests for Future Fiscal Years</inline>.—</heading><content>Section 115(g) of title 10, United States Code, is amended by adding at the end the following new sentence: “In each budget submitted by the President to Congress under section 1105 of title 31, the end strength requested for military technicians (dual status) for each <page identifier="/us/stat/111/1721">111 STAT. 1721</page>reserve component of the Army and Air Force shall be specifically set forth.”.</content> </subsection> </section> </subtitle> <subtitle> <num value="C">Subtitle C—</num><heading>Authorization of Appropriations</heading> <section> <num value="421">SEC. 421. </num><heading>AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.</heading> <content>There is hereby authorized to be appropriated to the Department of Defense for military personnel for fiscal year 1998 a total of $69,470,505,000. The authorization in the preceding sentence supersedes any other authorization of appropriations (definite or indefinite) for such purpose for fiscal year 1998.</content> </section> </subtitle> <num value="V">TITLE V—</num><heading>MILITARY PERSONNEL POLICY</heading> <toc> <referenceItem role="subtitle"><designator>Subtitle A—</designator><label>Officer Personnel Policy</label></referenceItem> <referenceItem role="section"><designator>Sec. 501.</designator> <label>Limitation on number of general and flag officers who may serve in positions outside their own service.</label></referenceItem> <referenceItem role="section"><designator>Sec. 502.</designator> <label>Exclusion of certain retired officers from limitation on period of recall to active duty.</label></referenceItem> <referenceItem role="section"><designator>Sec. 503.</designator> <label>Clarification of officers eligible for consideration by promotion boards.</label></referenceItem> <referenceItem role="section"><designator>Sec. 504.</designator> <label>Authority to defer mandatory retirement for age of officers serving as chaplains.</label></referenceItem> <referenceItem role="section"><designator>Sec. 505.</designator> <label>Increase in number of officers allowed to be frocked to grades of colonel and Navy captain.</label></referenceItem> <referenceItem role="section"><designator>Sec. 506.</designator> <label>Increased years of commissioned service for mandatory retirement of regular generals and admirals in grades above major general and rear admiral.</label></referenceItem> <referenceItem role="section"><designator>Sec. 507.</designator> <label>Uniform policy for requirement of exemplary conduct by commanding officers and others in authority.</label></referenceItem> <referenceItem role="section"><designator>Sec. 508.</designator> <label>Report on the command selection process for District Engineers of the Army Corps of Engineers.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle B—</designator><label>Reserve Component Matters</label></referenceItem> <referenceItem role="section"><designator>Sec. 511.</designator> <label>Individual Ready Reserve activation authority.</label></referenceItem> <referenceItem role="section"><designator>Sec. 512.</designator> <label>Termination of Mobilization Income Insurance Program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 513.</designator> <label>Correction of inequities in medical and dental care and death and disability benefits for reserve members who incur or aggravate an illness in the line of duty.</label></referenceItem> <referenceItem role="section"><designator>Sec. 514.</designator> <label>Authority to permit non-unit assigned officers to be considered by vacancy promotion board to general officer grades</label></referenceItem> <referenceItem role="section"><designator>Sec. 515.</designator> <label>Prohibition on use of Air Force Reserve AGR personnel for Air Force base security functions.</label></referenceItem> <referenceItem role="section"><designator>Sec. 516.</designator> <label>Involuntary separation of reserve officers in an inactive status.</label></referenceItem> <referenceItem role="section"><designator>Sec. 517.</designator> <label>Federal status of service by National Guard members as honor guards at funerals of veterans.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle C—</designator><label>Military Technicians</label></referenceItem> <referenceItem role="section"><designator>Sec. 521.</designator> <label>Authority to retain on the reserve active-status list until age 60 military technicians in the grade of brigadier general.</label></referenceItem> <referenceItem role="section"><designator>Sec. 522.</designator> <label>Military technicians (dual status).</label></referenceItem> <referenceItem role="section"><designator>Sec. 523.</designator> <label>Non-dual status military technicians.</label></referenceItem> <referenceItem role="section"><designator>Sec. 524.</designator> <label>Report on feasibility and desirability of conversion of AGR personnel to military technicians (dual status).</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle D—</designator><label>Measures To Improve Recruit Quality and Reduce Recruit Attrition</label></referenceItem> <referenceItem role="section"><designator>Sec. 531.</designator> <label>Reform of military recruiting systems.</label></referenceItem> <referenceItem role="section"><designator>Sec. 532.</designator> <label>Improvements in medical prescreening of applicants for military service.</label></referenceItem> <referenceItem role="section"><designator>Sec. 533.</designator> <label>Improvements in physical fitness of recruits.<page identifier="/us/stat/111/1722">111 STAT. 1722</page></label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle E—</designator><label>Military Education and Training</label></referenceItem> <referenceItem role="part"><designator>Part I—</designator><label>Officer Education Programs</label></referenceItem> <referenceItem role="section"><designator>Sec. 541.</designator> <label>Requirement for candidates for admission to United States Naval Academy to take oath of allegiance.</label></referenceItem> <referenceItem role="section"><designator>Sec. 542.</designator> <label>Service academy foreign exchange program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 543.</designator> <label>Reimbursement of expenses incurred for instruction at service academies of persons from foreign countries.</label></referenceItem> <referenceItem role="section"><designator>Sec. 544.</designator> <label>Continuation of support to senior military colleges.</label></referenceItem> <referenceItem role="section"><designator>Sec. 545.</designator> <label>Report on making United States nationals eligible for participation in Senior Reserve Officers’ Training Corps.</label></referenceItem> <referenceItem role="section"><designator>Sec. 546.</designator> <label>Coordination of establishment and maintenance of Junior Reserve Officers’ Training Corps units to maximize enrollment and enhance efficiency.</label></referenceItem> <referenceItem role="part"><designator>Part II—</designator><label>Other Education Matters</label></referenceItem> <referenceItem role="section"><designator>Sec. 551.</designator> <label>United States Naval Postgraduate School.</label></referenceItem> <referenceItem role="section"><designator>Sec. 552.</designator> <label>Community College of the Air Force.</label></referenceItem> <referenceItem role="section"><designator>Sec. 553.</designator> <label>Preservation of entitlement to educational assistance of members of the Selected Reserve serving on active duty in support of a contingency operation.</label></referenceItem> <referenceItem role="part"><designator>Part III—</designator><label>Training of Army Drill Sergeants</label></referenceItem> <referenceItem role="section"><designator>Sec. 556.</designator> <label>Reform of Army drill sergeant selection and training process.</label></referenceItem> <referenceItem role="section"><designator>Sec. 557.</designator> <label>Training in human relations matters for Army drill sergeant trainees.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle F—</designator><label>Commission on Military Training and Gender-Related Issues</label></referenceItem> <referenceItem role="section"><designator>Sec. 561.</designator> <label>Establishment and composition of Commission.</label></referenceItem> <referenceItem role="section"><designator>Sec. 562.</designator> <label>Duties.</label></referenceItem> <referenceItem role="section"><designator>Sec. 563.</designator> <label>Administrative matters.</label></referenceItem> <referenceItem role="section"><designator>Sec. 564.</designator> <label>Termination of Commission.</label></referenceItem> <referenceItem role="section"><designator>Sec. 565.</designator> <label>Funding.</label></referenceItem> <referenceItem role="section"><designator>Sec. 566.</designator> <label>Subsequent consideration by Congress.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle G—</designator><label>Military Decorations and Awards</label></referenceItem> <referenceItem role="section"><designator>Sec. 571.</designator> <label>Purple Heart to be awarded only to members of the Armed Forces.</label></referenceItem> <referenceItem role="section"><designator>Sec. 572.</designator> <label>Eligibility for Armed Forces Expeditionary Medal for participation in Operation Joint Endeavor or Operation Joint Guard.</label></referenceItem> <referenceItem role="section"><designator>Sec. 573.</designator> <label>Waiver of time limitations for award of certain decorations to specified persons.</label></referenceItem> <referenceItem role="section"><designator>Sec. 574.</designator> <label>Clarification of eligibility of members of Ready Reserve for award of service medal for heroism</label></referenceItem> <referenceItem role="section"><designator>Sec. 575.</designator> <label>One-year extension of period for receipt of recommendations for decorations and awards for certain military intelligence personnel.</label></referenceItem> <referenceItem role="section"><designator>Sec. 576.</designator> <label>Eligibility of certain World War II military organizations for award of unit decorations.</label></referenceItem> <referenceItem role="section"><designator>Sec. 577.</designator> <label>Retroactivity of Medal of Honor special pension.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle H—</designator><label>Military Justice Matters</label></referenceItem> <referenceItem role="section"><designator>Sec. 581.</designator> <label>Establishment of sentence of confinement for life without eligibility for parole.</label></referenceItem> <referenceItem role="section"><designator>Sec. 582.</designator> <label>Limitation on appeal of denial of parole for offenders serving life sentence.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle I—</designator><label>Other Matters</label></referenceItem> <referenceItem role="section"><designator>Sec. 591.</designator> <label>Sexual harassment investigations and reports.</label></referenceItem> <referenceItem role="section"><designator>Sec. 592.</designator> <label>Sense of the Senate regarding study of matters relating to gender equity in the Armed Forces.</label></referenceItem> <referenceItem role="section"><designator>Sec. 593.</designator> <label>Authority for personnel to participate in management of certain non-Federal entities.</label></referenceItem> <referenceItem role="section"><designator>Sec. 594.</designator> <label>Treatment of participation of members in Department of Defense civil military programs.</label></referenceItem> <referenceItem role="section"><designator>Sec. 595.</designator> <label>Comptroller General study of Department of Defense civil military programs.</label></referenceItem> <referenceItem role="section"><designator>Sec. 596.</designator> <label>Establishment of public affairs specialty in the Army.</label></referenceItem> <referenceItem role="section"><designator>Sec. 597.</designator> <label>Grade of defense attache in France.</label></referenceItem> <referenceItem role="section"><designator>Sec. 598.</designator> <label>Report on crew requirements of WC–130J aircraft.</label></referenceItem> <referenceItem role="section"><designator>Sec. 599.</designator> <label>Improvement of missing persons authorities applicable to Department of Defense.<page identifier="/us/stat/111/1723">111 STAT. 1723</page></label></referenceItem> </toc> <subtitle> <num value="A">Subtitle A—</num><heading>Officer Personnel Policy</heading> <section> <num value="501">SEC. 501. </num><heading>LIMITATION ON NUMBER OF GENERAL AND FLAG OFFICERS WHO MAY SERVE IN POSITIONS OUTSIDE THEIR OWN SERVICE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>Chapter 41 of title 10, United States Code, is amended by adding at the end the following new section: <quotedContent> <section> <num value="721">“§ 721. </num><heading>General and flag officers: limitation on appointments, assignments, details, and duties outside an officer’s own service</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Limitation</inline>.—</heading><content>An officer described in subsection (b) may not be appointed, assigned, or detailed for a period in excess of 180 days to a position external to that officer’s armed force if, immediately following such appointment, assignment, or detail, the number of officers described in subsection (b) serving in positions external to such officers’ armed force would be in excess of 26.5 percent of the total number of the officers described in subsection (b).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Covered Officers</inline>.—</heading><chapeau>The officers covered by subsection (a), and to be counted for the purposes of the limitation in that subsection, are the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>Any general or flag officer counted for purposes of section 526(a) of this title.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>Any general or flag officer serving in a joint duty assignment position designated by the Chairman of the Joint Chiefs of Staff under section 526(b) of this title.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>Any colonel or Navy captain counted for purposes of section 777(d)(1) of this title.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">External Positions</inline>.—</heading><chapeau>For purposes of this section, the following positions shall be considered to be external to an officer’s armed force:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>Any position (including a position in joint education) that is a joint duty assignment for purposes of chapter 38 of this title.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>Any position in the Office of the Secretary of Defense, a Defense Agency, or a Department of Defense Field Activity.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>Any position in the Joint Chiefs of Staff, the Joint Staff, or the headquarters of a combatant command (as defined in chapter 6 of this title).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>Any position in the National Guard Bureau.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><content>Any position outside the Department of Defense, including any position in the headquarters of the North Atlantic Treaty Organization or any other international military command, any combined or multinational command, or military mission.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Treatment of Officers Holding Multiple Positions</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>If an officer described in subsection (b) simultaneously holds both a position external to that officer’s armed force and another position not external to that officer’s armed force, the Secretary of Defense shall determine whether that officer shall be counted for the purposes of this section.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The Secretary of Defense shall submit to Congress an<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> Reports annual report on the number of officers to whom paragraph (1) was applicable during the year covered by the report. The report <page identifier="/us/stat/111/1724">111 STAT. 1724</page>shall set forth the determination made by the Secretary under that paragraph in each such case.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Assignments, Etc., for Periods in Excess of 180 Days</inline>.—</heading><content>For purposes of this section, the appointment, assignment, or detail of an officer to a position shall be considered to be for a period in excess of 180 days unless the appointment, assignment, or detail specifies that it is made for a period of 180 days or less.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f) </num><sidenote><p class="indent0 firstIndent0 fontsize8">President.</p></sidenote><heading><inline class="smallCaps">Waiver During Period of War or National Emergency</inline>.—</heading><content>The President may suspend the operation of this section during any period of war or of national emergency declared by Congress or the President.”.</content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections at the beginning of such chapter is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“721.</designator> <label>General and flag officers: limitation on appointments, assignments, details, and duties outside an officer’s own service.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="502">SEC. 502. </num><heading>EXCLUSION OF CERTAIN RETIRED OFFICERS FROM LIMITATION ON PERIOD OF RECALL TO ACTIVE DUTY.</heading> <content>Section 688(e) of title 10, United States Code, is amended— (1) by inserting “<quotedText>(1)</quotedText>” before “A member”; and (2) by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><chapeau>Paragraph (1) does not apply to the following officers:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>A chaplain who is assigned to duty as a chaplain for the period of active duty to which ordered.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>A health care professional (as characterized by the Secretary concerned) who is assigned to duty as a health care professional for the period of active duty to which ordered.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content> An officer assigned to duty with the American Battle Monuments Commission for the period of active duty to which ordered.”.</content></subparagraph> </paragraph> </quotedContent> </content></section> <section> <num value="503">SEC. 503. </num><heading>CLARIFICATION OF OFFICERS ELIGIBLE FOR CONSIDERATION BY PROMOTION BOARDS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Officers on the Active-Duty List</inline>.—</heading><chapeau>Section 619(d) of title 10, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out “grade—” in the matter preceding paragraph (1) and inserting in lieu thereof “grade any of the following officers:”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>in paragraph (1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking out “an officer” and inserting in lieu thereof “An officer”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking out “; or” at the end and inserting in lieu thereof a period;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by redesignating paragraph (2) as paragraph (3) and in that paragraph striking out “an officer” and inserting in lieu thereof “An officer”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>by inserting after paragraph (1) the following new paragraph (2): <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>An officer who is recommended for promotion to that grade in the report of an earlier selection board convened under that section, in the case of such a report that has not yet been approved by the President.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Officers on the Reserve Active-Status List</inline>.—</heading><chapeau>Section 14301(c) of such title is amended—<page identifier="/us/stat/111/1725">111 STAT. 1725</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out “grade—” in the matter preceding paragraph (1) and inserting in lieu thereof “grade any of the following officers:”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking out “an officer” in each of paragraphs (1), (2), and (3) and inserting in lieu thereof “An officer”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by striking out the semicolon at the end of paragraph (1) and inserting in lieu thereof a period;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>by striking out “; or” at the end of paragraph (2) and inserting in lieu thereof a period;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>by redesignating paragraphs (2) and (3), as so amended, as paragraphs (3) and (4), respectively, and in each such paragraph striking out “the next higher grade” and inserting in lieu thereof “that grade”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>by inserting after paragraph (1) the following new paragraph (2): <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>An officer who is recommended for promotion to that grade in the report of an earlier selection board convened under a provision referred to in paragraph (1), in the case of such a report that has not yet been approved by the President.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Clarifying Amendments</inline>.—</heading><content>Paragraphs (3) and (4) of section 14301(c) of such title, as redesignated and amended by subsection (b), are each amended by inserting before the period at the end the following: “, if that nomination is pending before the Senate”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s619">10 USC 619 note</ref>.</p></sidenote> shall take effect on the date of the enactment of this Act and shall apply with respect to selection boards that are convened under section 611(a), 14101(a), or 14502 of title 10, United States Code, on or after that date.</content> </subsection> </section> <section> <num value="504">SEC. 504. </num><heading>AUTHORITY TO DEFER MANDATORY RETIREMENT FOR AGE OF OFFICERS SERVING AS CHAPLAINS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Authority for Deferral of Retirement for Chaplains</inline>.—</heading><chapeau>Subsection (c) of section 1251 of title 10, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting after paragraph (1) the following new paragraph (2): <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The Secretary concerned may defer the retirement under subsection (a) of an officer who is appointed or designated as a chaplain if the Secretary determines that such deferral is in the best interest of the military department concerned.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Authority for Deferral of Retirement for Chief and Deputy Chief of Chaplains</inline>.—</heading><content>Such section is further amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><content>The Secretary concerned may defer the retirement under subsection (a) of an officer who is the Chief of Chaplains or Deputy Chief of Chaplains of that officer’s armed force. Such a deferment may not extend beyond the first day of the month following the month in which the officer becomes 68 years of age.”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Qualification for Service as Navy Chief of Chaplains or Deputy Chief of Chaplains</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Section 5142(b) of such title is amended by striking out “, who are not on the retired list,”.</content> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Section 5142a of such title is amended by striking “<quotedText>, who is not on the retired list,</quotedText>”.<page identifier="/us/stat/111/1726">111 STAT. 1726</page></content></paragraph> </subsection> </section> <section> <num value="SEC. 505.">SEC. 505. </num><heading>INCREASE IN NUMBER OF OFFICERS ALLOWED TO BE FROCKED TO GRADES OF COLONEL AND NAVY CAPTAIN.</heading> <content>Section 777(d)(2) of title 10, United States Code, is amended by inserting after “<quotedText>1 percent</quotedText>” the following: “, or, for the grades of colonel and Navy captain, 2 percent,”.</content> </section> <section> <num value="506">SEC. 506. </num><heading>INCREASED YEARS OF COMMISSIONED SERVICE FOR MANDATORY RETIREMENT OF REGULAR GENERALS AND ADMIRALS IN GRADES ABOVE MAJOR GENERAL AND REAR ADMIRAL.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Years of Service</inline>.—</heading><chapeau>Section 636 of title 10, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out “Except as provided” and inserting in lieu thereof “(a) <inline class="smallCaps">Major Generals and Rear Admirals Serving in Grade</inline>.—Except as provided in subsection (b) or (c) and”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Lieutenant Generals and Vice Admirals</inline>.—</heading><content>In the administration of subsection (a) in the case of an officer who is serving in the grade of lieutenant general or vice admiral, the number of years of active commissioned service applicable to the officer is 38 years.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Generals and Admirals</inline>.—</heading><content>In the administration of subsection (a) in the case of an officer who is serving in the grade of general or admiral, the number of years of active commissioned service applicable to the officer is 40 years.”.</content> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Section Heading</inline>.—</heading><content>The heading of such section is amended to read as follows: <quotedContent> <section> <num value="636">“§636. </num><heading>Retirement for years of service: regular officers in grades above brigadier general and rear admiral (lower half)”.</heading> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The item relating to such section in the table of sections at the beginning of subchapter III of chapter 36 of such title is amended to read as follows: <quotedContent> <toc> <referenceItem role="section"><designator>“636.</designator> <label>Retirement for years of service: regular officers in grades above brigadier general and rear admiral (lower half).”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="507">SEC. 507. </num><heading>UNIFORM POLICY FOR REQUIREMENT OF EXEMPLARY CONDUCT BY COMMANDING OFFICERS AND OTHERS IN AUTHORITY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Army</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Chapter 345 of title 10, United States Code, is amended by adding at the end the following new section: <quotedContent> <num value="3583">“§ 3583. </num><heading>Requirement of exemplary conduct</heading> <chapeau>“All commanding officers and others in authority in the Army are required—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>to show in themselves a good example of virtue, honor, patriotism, and subordination;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>to be vigilant in inspecting the conduct of all persons who are placed under their command;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>to guard against and suppress all dissolute and immoral practices, and to correct, according to the laws and regulations of the Army, all persons who are guilty of them; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>to take all necessary and proper measures, under the laws, regulations, and customs of the Army, to promote and <page identifier="/us/stat/111/1727">111 STAT. 1727</page>safeguard the morale, the physical well-being, and the general welfare of the officers and enlisted persons under their command or charge”.</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of such chapter is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“3583.</designator> <label>Requirement of exemplary conduct.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Air Force</inline>.—</heading><paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Chapter 845 of title 10, United States Code, is amended by adding at the end the following new section: <quotedContent> <section> <num value="8583">“§ 8583. </num><heading>Requirement of exemplary conduct</heading> <chapeau>“All commanding officers and others in authority in the Air Force are required—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>to show in themselves a good example of virtue, honor, patriotism, and subordination;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>to be vigilant in inspecting the conduct of all persons who are placed under their command;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>to guard against and suppress all dissolute and immoral practices, and to correct, according to the laws and regulations of the Air Force, all persons who are guilty of them; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>to take all necessary and proper measures, under the laws, regulations, and customs of the Air Force, to promote and safeguard the morale, the physical well-being, and the general welfare of the officers and enlisted persons under their command or charge.”.</content></paragraph> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of such chapter is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“8583.</designator> <label>Requirement of exemplary conduct.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> </section> <section> <num value="508">SEC. 508. </num><heading>REPORT ON THE COMMAND SELECTION PROCESS FOR DISTRICT ENGINEERS OF THE ARMY CORPS OF ENGINEERS.</heading> <chapeau>Not later than March 31, 1998, the Secretary of the Army shall submit to Congress a report on the command selection process for officers serving as District Engineers of the Corps of Engineers. The report shall include the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>An identification of each major Corps of Engineers project that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>is being carried out by each District Engineer as of the date of the report; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>is being planned by each District Engineer to be carried out during the five-year period beginning on the date of the report.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The expected start and completion dates, during that period, for each major phase of each project identified under paragraph (1).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The expected dates for changes in the District Engineer in each Corps of Engineers District during that period.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>A plan for optimizing the timing of changes in the District Engineer in each such District so that there is minimal disruption to major phases of major Corps of Engineers projects.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>A review of the effect on the Corps of Engineers, and on the mission of each District of the Corps of Engineers, of allowing major command tours of District Engineers to be of two-to-four years in duration, with the selection of the exact timing of the change of command to be at the discretion of the Chief of Engineers, who shall act with the goal of optimizing <page identifier="/us/stat/111/1728">111 STAT. 1728</page>the timing of each change so that it has minimal disruption on the mission of the District Engineer.</content></paragraph> </section> </subtitle> <subtitle> <num value="B">Subtitle B—</num><heading>Reserve Component Matters</heading> <section> <num value="511">SEC. 511. </num><heading>INDIVIDUAL READY RESERVE ACTIVATION AUTHORITY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">IRR Members Subject to Order to Active Duty Other Than During War or National Emergency</inline>.—</heading><chapeau>Section 10144 of title 10, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>(a)</quotedText>” before “Within the Ready Reserve”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>Within the Individual Ready Reserve of each reserve component there is a category of members, as designated by the Secretary concerned, who are subject to being ordered to active duty involuntarily in accordance with section 12304 of this title. A member may not be placed in that mobilization category unless—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>the member volunteers for that category; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>the member is selected for that category by the Secretary concerned, based upon the needs of the service and the grade and military skills of that member.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>A member of the Individual Ready Reserve may not be carried in such mobilization category of members after the end of the 24-month period beginning on the date of the separation of the member from active service.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>The Secretary shall designate the grades and military skills or specialities of members to be eligible for placement in such mobilization category.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="4">“(4) </num><content>A member in such mobilization category shall be eligible for benefits (other than pay and training) as are normally available to members of the Selected Reserve, as determined by the Secretary of Defense.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Criteria for Ordering to Active Duty</inline>.—</heading><content>Subsection (a) of section 12304 of title 10, United States Code, is amended by inserting after “<quotedText>of this title),</quotedText>” the following: “or any member in the Individual Ready Reserve mobilization category and designated as essential under regulations prescribed by the Secretary concerned,”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Maximum Number</inline>.—</heading><chapeau>Subsection (c) of such section is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>and the Individual Ready Reserve</quotedText>” after “Selected Reserve”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting “<quotedText>, of whom not more than 30,000 may be members of the Individual Ready Reserve</quotedText>” before the period at the end.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><chapeau>Such section is further amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subsection (f), by inserting “<quotedText>or Individual Ready Reserve</quotedText>” after “Selected Reserve”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in subsection (g), by inserting “<quotedText>, or any member of the Individual Ready Reserve,</quotedText>” after “to serve as a unit”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="i">“(i) </num><content>For purposes of this section, the term ‘Individual Ready Reserve mobilization category’ means, in the case of any reserve component, the category of the Individual Ready Reserve described in section 10144(b) of this title.”.<page identifier="/us/stat/111/1729">111 STAT. 1729</page></content> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Clerical Amendments</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The heading of such section is amended to read as follows: <quotedContent> <section> <num value="12304">“§12304. </num><heading>Selected Reserve and certain Individual Ready Reserve members; order to active duty other than during war or national emergency”.</heading> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The item relating to section 12304 in the table of sections at the beginning of chapter 1209 of such title is amended to read as follows: <quotedContent> <toc> <referenceItem role="section"><designator>“12304.</designator> <label>Selected Reserve and certain Individual Ready Reserve members; order to active duty other than during war or national emergency.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> </section> <section> <num value="512">SEC. 512. </num><heading>TERMINATION OF MOBILIZATION INCOME INSURANCE PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>Chapter 1214 of title 10, United States Code, is amended by adding at the end the following new section: <quotedContent> <section> <num value="12533">“§ 12533. </num><heading>Termination of program</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>The Secretary shall terminate the insurance program in accordance with this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Termination of New Enrollments</inline>.—</heading><content>The Secretary may not enroll a member of the Ready Reserve for coverage under the insurance program after the date of the enactment of this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Termination of Coverage</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The enrollment under the insurance program of insured members other than insured members described in paragraph (2) is terminated as of the date of the enactment of this section. The enrollment of an insured member described in paragraph (2) is terminated as of the date of the termination of the period of covered service of that member described in that paragraph.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>An insured member described in this paragraph is an insured member who on the date of the enactment of this section is serving on covered service for a period of service, or has been issued an order directing the performance of covered service, that satisfies or would satisfy the entitlement-to-benefits provisions of this chapter.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Termination of Payment of Benefits</inline>.—</heading><content>The Secretary may not make any benefit payment under the insurance program after the date of the enactment of this section other than to an insured member who on that date (1) is serving on an order to covered service, (2) has been issued an order directing performance of covered service, or (3) has served on covered service before that date for which benefits under the program have not been paid to the member.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Termination of Insurance Fund</inline>.—</heading><content>The Secretary shall close the Fund not later than 60 days after the date on which the last benefit payment from the Fund is made. Any amount remaining in the Fund when closed shall be covered into the Treasury as miscellaneous receipts.”.</content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections at the beginning of such chapter is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>12533.</designator> <label>Termination of program.”.</label></referenceItem> </toc> </quotedContent> <page identifier="/us/stat/111/1730">111 STAT. 1730</page> </content></subsection> </section> <section> <num value="513">SEC. 513. </num><heading>CORRECTION OF INEQUITIES IN MEDICAL AND DENTAL CARE AND DEATH AND DISABILITY BENEFITS FOR RESERVE MEMBERS WHO INCUR OR AGGRAVATE AN ILLNESS IN THE LINE OF DUTY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Medical and Dental Care for Members</inline>.—</heading><chapeau>Section 1074a of title 10, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subsection (a)(3), by inserting “<quotedText>while remaining overnight immediately before the commencement of inactive-duty training, or</quotedText>” after “in the line of duty”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following new subsection <quotedContent> <subsection class="indent0 fontsize10"> <num value="e"> “(e) </num><content>A member of a uniformed service described in paragraph (1)(A) or (2)(A) of subsection (a) whose orders are modified or extended, while the member is being treated for (or recovering from) the injury, illness, or disease incurred or aggravated in the line of duty, so as to result in active duty for a period of more than 30 days shall be entitled, while the member remains on active duty, to medical and dental care on the same basis and to the same extent as members covered by section 1074(a) of this title.”.</content> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Medical and Dental Care for Dependents</inline>.—</heading><content>Section 1076(a) of such title is amended by striking out paragraph (2) and inserting in lieu thereof the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><chapeau >A dependent referred to in paragraph (1) is a dependent of a member of a uniformed service described in one of the following subparagraphs:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>A member who is on active duty for a period of more than 30 days or died while on that duty.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><chapeau>A member who died from an injury, illness, or disease incurred or aggravated—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>while the member was on active duty under a call or order to active duty of 30 days or less, on active duty for training, or on inactive-duty training; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>while the member was traveling to or from the place at which the member was to perform, or had performed, such active duty, active duty for training, or inactive-duty training.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>A member who died from an injury, illness, or disease incurred or aggravated in the line of duty while the member remained overnight immediately before the commencement of inactive-duty training, or while the member remained overnight between successive periods of inactive-duty training, at or in the vicinity of the site of the inactive-duty training, if the site was outside reasonable commuting distance from the member’s residence.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>A member who incurred or aggravated an injury, illness, or disease in the line of duty while serving on active duty for a period of 30 days or less (or while traveling to or from the place of such duty) and the member’s orders are modified or extended, while the member is being treated for (or recovering from) the injury, illness, or disease, so as to result in active duty for a period of more than 30 days. However, this subparagraph entitles the dependent to medical and dental care only while the member remains on active duty.”.</content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Eligibility for Disability Retirement or Separation</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Section 1204(2) of such title is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><chapeau>the disability—<page identifier="/us/stat/111/1731">111 STAT. 1731</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><chapeau>was incurred before September 24, 1996, as the proximate result of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>performing active duty or inactive-duty training;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>traveling directly to or from the place at which such duty is performed; or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><content>an injury, illness, or disease incurred or aggravated while remaining overnight, immediately before the commencement of inactive-duty training, or while remaining overnight between successive periods of inactive-duty training, at or in the vicinity of the site of the inactive-duty training, if the site of the inactive-duty training is outside reasonable commuting distance of the member’s residence; or</content></clause> </subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><chapeau>is a result of an injury, illness, or disease incurred or aggravated in line of duty after September 23, 1996—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>while performing active duty or inactive-duty training;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>while traveling directly to or from the place at which such duty is performed; or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><content>while remaining overnight, immediately before the commencement of inactive-duty training, or while remaining overnight between successive periods of inactive-duty training, at or in the vicinity of the site of the inactive-duty training, if the site of the inactive-duty training is outside reasonable commuting distance of the member’s residence;”.</content></clause> </subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>Section 1206 of such title is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by redesignating paragraphs (2), (3), and (4) as paragraphs (3), (4), and (5), respectively, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by inserting after paragraph (1) the following new paragraph (2): <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><chapeau>the disability is a result of an injury, illness, or disease incurred or aggravated in line of duty while—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>performing active duty or inactive-duty training;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>traveling directly to or from the place at which such duty is performed; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>while remaining overnight immediately before the commencement of inactive-duty training, or while remaining overnight between successive periods of inactive-duty training, at or in the vicinity of the site of the inactive-duty training, if the site is outside reasonable commuting distance of the member’s residence;”.</content></subparagraph> </paragraph> </quotedContent> </content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Conforming Amendments and Related Clerical Amendments</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The heading of section 1204 of title 10, United States Code, is amended to read as follows: <quotedContent> <section> <num value="1204">“§ 1204. </num><heading>Members on active duty for 30 days or less or on inactive-duty training: retirement”.</heading> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The heading of section 1206 of such title is amended to read as follows: <quotedContent> <section> <num value="1206">“§ 1206. </num><heading>Members on active duty for 30 days or less or on inactive-duty training: separation”.</heading> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><chapeau>The table of sections at the beginning of chapter 61 of such title is amended—<page identifier="/us/stat/111/1732">111 STAT. 1732</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking out the item relating to section 1204 and inserting in lieu thereof the following: <quotedContent> <toc> <referenceItem role="section"><designator>“1204.</designator> <label>Members on active duty for 30 days or less or on inactive-duty training: retirement.”; and</label></referenceItem> </toc> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking out the item relating to section 1206 and inserting in lieu thereof the following: <quotedContent> <toc> <referenceItem role="section"><designator>“1206.</designator> <label>Members on active duty for 30 days or less or on inactive-duty training: separation.”.</label></referenceItem> </toc> </quotedContent> </content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Recovery, Care, and Disposition of Remains</inline>.—</heading><content>Section 1481(a)(2)(D) of such title is amended by inserting “<quotedText>remaining overnight immediately before the commencement of inactive-duty training, or</quotedText>” after “(D)”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Entitlement to Basic Pay</inline>.—</heading><content>Section 204 of title 37, United States Code, is amended by inserting “<quotedText>while remaining overnight immediately before the commencement of inactive-duty training, or</quotedText>” in subsections (g)(1)(D) and (h)(1)(D) after “in line of duty”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num><heading><inline class="smallCaps">Compensation for Inactive-Duty Training</inline>.—</heading><content>Section 206(a)(3)(C) of title 37, United States Code, is amended by inserting “<quotedText>while remaining overnight immediately before the commencement of inactive-duty training, or</quotedText>” after “in line of duty”.</content> </subsection> </section> <section> <num value="514">SEC. 514. </num><heading>AUTHORITY TO PERMIT NON-UNTT ASSIGNED OFFICERS TO BE CONSIDERED BY VACANCY PROMOTION BOARD TO GENERAL OFFICER GRADES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Convening of Selection Boards</inline>.—</heading><content>Section 14101(a)(2) of title 10, United States Code, is amended by striking out “(except in the case of a board convened to consider officers as provided in section 14301(e) of this title)”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Eligibility for Consideration of Certain Army Officers</inline>.—</heading><chapeau>Section 14301 of such title is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out subsection (e); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by redesignating subsections (f) and (g) as subsections (e) and (f), respectively.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">General Officer Promotions</inline>.—</heading><chapeau>Section 14308 of such title is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subsection (e)(2), by inserting “<quotedText>a grade below colonel in</quotedText>” after “(2) an officer in”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>in subsection (g)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by inserting “<quotedText>or the Air Force</quotedText>” in the first sentence after “of the Army” the first place it appears;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking out “in that grade” in the first sentence and all that follows through “Secretary of the Army” and inserting in lieu thereof “in the Army Reserve or the Air Force Reserve, as the case may be, in that grade”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>by striking out the second sentence.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Vacancy Promotions</inline>.—</heading><content>Section 14315(b)(1) of such title is amended by striking out “duties” in clause (A) and all that follows through “as a unit,” and inserting in lieu thereof “duties of a general officer of the next higher reserve grade in the Army Reserve,”.</content> </subsection> </section> <section> <num value="515">SEC. 515. </num><heading>PROHIBITION ON USE OF AIR FORCE RESERVE AGR PERSONNEL FOR AIR FORCE BASE SECURITY FUNCTIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>Chapter 1215 of title 10, United States Code, is amended by striking out <page identifier="/us/stat/111/1733">111 STAT. 1733</page> <quotedContent> <p class="centered fontsize8">“[No present sections]”</p> <p class="indent0 fontsize10">and inserting in lieu thereof the following:</p> <toc> <referenceItem role="section"><designator>“Sec.</designator> <label /></referenceItem> <referenceItem role="section"><designator>12551.</designator> <label>Prohibition of use of Air Force Reserve AGR personnel for Air Force base security functions.</label></referenceItem> </toc> <section> <num value="12551">“§ 12551. </num><heading>Prohibition of use of Air Force Reserve AGR personnel for Air Force base security functions</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Limitation</inline>.—</heading><content>The Secretary of the Air Force may not use members of the Air Force Reserve who are AGR personnel for the performance of force protection, base security, or security police functions at an Air Force facility in the United States.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">AGR Personnel Defined</inline>.—</heading><content>In this section, the term ‘AGR personnel’ means members of the Air Force Reserve who are on active duty (other than for training) in connection with organizing, administering, recruiting, instructing, or training the Air Force Reserve.”.</content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The items relating to chapter 1215 in the tables of chapters at the beginning of subtitle E, and at the beginning of part II of subtitle E, are amended to read as follows: <quotedContent> <toc> <referenceItem><designator leaderChar="." leaderAlign="right">“1215. Miscellaneous Prohibitions and Penalties</designator> <target>12551”.</target></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="516">SEC. 516. </num><heading>INVOLUNTARY SEPARATION OF RESERVE OFFICERS IN AN INACTIVE STATUS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Authority for Involuntary Separation of Certain Inactive Status Officers</inline>.—</heading><chapeau>Section 12683(b) of title 10, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in the matter preceding paragraph (1), by striking out “apply—” and inserting in lieu thereof “apply to any of the following:”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>A separation of an officer who is in an inactive status in the Standby Reserve and who is not qualified for transfer to the Retired Reserve or is qualified for transfer to the Retired Reserve and does not apply for such a transfer.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Stylistic Amendments</inline>.—</heading><chapeau>Such section is further amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in paragraphs (1), (2), and (3), by striking out “to a” and inserting in lieu thereof “A”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking out the semicolon at the end of paragraph (1) and inserting in lieu thereof a period; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by striking out “; and” at the end of paragraph (2) and inserting in lieu thereof a period.</content></paragraph> </subsection> </section> <section> <num value="517">SEC. 517. </num><heading>FEDERAL STATUS OF SERVICE BY NATIONAL GUARD MEMBERS AS HONOR GUARDS AT FUNERALS OF VETERANS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><num value="1">(1) </num><content>Chapter 1 of title 32, United States Code, is amended by adding after section 113, as added by section 386(a), the following new section: <quotedContent> <section> <num value="114">“§ 114. </num><heading>Honor guard functions at funerals for veterans</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><content>Subject to such regulations and restrictions as may be prescribed by the Secretary concerned, the performance of honor guard functions by members of the National Guard at funerals for veterans of the armed forces may be treated by the Secretary <page identifier="/us/stat/111/1734">111 STAT. 1734</page>concerned as a Federal function for which appropriated funds may be used. Any such performance of honor guard functions at such a funeral may not be considered to be a period of drill or training otherwise required.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><content>This section does not authorize additional appropriations for any fiscal year. Any expense of the National Guard that is incurred by reason of this section shall be paid from appropriations otherwise available for the National Guard.”.</content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections at the beginning of such chapter is amended by adding after the item relating to section 113, as added by section 386(b), the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“114.</designator> <label>Honor guard functions at funerals for veterans.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> </subtitle> <subtitle> <num value="C">Subtitle C—</num><heading>Military Technicians</heading> <section> <num value="521">SEC. 521. </num><heading>AUTHORITY TO RETAIN ON THE RESERVE ACTIVE-STATUS LIST UNTIL AGE 60 MILITARY TECHNICIANS IN THE GRADE OF BRIGADIER GENERAL.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Retention</inline>.—</heading><chapeau>Section 14702(a) of title 10, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out “section 14506 or 14507” and inserting in lieu thereof “section 14506,14507, or 14508”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking out “or colonel” and inserting in lieu thereof “colonel, or brigadier general”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Technical Amendment</inline>.—</heading><content>Section 14508(c) of such title is amended by striking out “not later than the date on which the officer becomes 60 years of age” and inserting in lieu thereof “not later than the last day of the month in which the officer becomes 60 years of age”.</content> </subsection> </section> <section> <num value="522">SEC. 522. </num><heading>MILITARY TECHNICIANS (DUAL STATUS).</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Definition</inline>.—</heading><content>Subsection (a) of section 10216 of title 10, United States Code, is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>For purposes of this section and any other provision of law, a military technician (dual status) is a Federal civilian employee who—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>is employed under section 3101 of title 5 or section 709 of title 32;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>is required as a condition of that employment to maintain membership in the Selected Reserve; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">“(C) </num><content>is assigned to a position as a technician in the administration and training of the Selected Reserve or in the maintenance and repair of supplies or equipment issued to the Selected Reserve or the armed forces.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>Military technicians (dual status) shall be authorized and accounted for as a separate category of civilian employees.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Unit Membership and Dual Status Requirement</inline>.—</heading><content>Such section is further amended by striking out subsection (d) and inserting in lieu thereof the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Unit Membership Requirement</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>Unless specifically exempted by law, each individual who is hired as a military technician (dual status) after December 1, 1995, shall be required as a condition of that employment to maintain membership in—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>the unit of the Selected Reserve by which the individual is employed as a military technician; or<page identifier="/us/stat/111/1735">111 STAT. 1735</page></content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>a unit of the Selected Reserve that the individual is employed as a military technician to support.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>Paragraph (1) does not apply to a military technician (dual status) who is employed by the Army Reserve in an area other than Army Reserve troop program units.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Dual Status Requirement</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Funds appropriated for the Department of Defense may not (except as provided in paragraph (2)) be used for compensation as a military technician of any individual hired as a military technician after February 10, 1996, who is no longer a member of the Selected Reserve.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The Secretary concerned may pay compensation described in paragraph (1) to an individual described in that paragraph who is no longer a member of the Selected Reserve for a period not to exceed six months following the individual’s loss of membership in the Selected Reserve if the Secretary determines that such loss of membership was not due to the failure of that individual to meet military standards.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">National Guard Dual Status Requirement</inline>.—</heading><content>Section 709(b) of title 32, United States Code, is amended by striking out “Except as prescribed by the Secretary concerned, a technician” and inserting in lieu thereof “A technician”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Plan for Clarification of Statutory Authority of Military Technicians</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>The Secretary of Defense shall submit to Congress, as part of the budget justification materials submitted in support of the budget for the Department of Defense for fiscal year 1999, a legislative proposal to provide statutory authority and clarification under title 5, United States Code—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>for the hiring, management, promotion, separation, and retirement of military technicians who are employed in support of units of the Army Reserve or Air Force Reserve; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>for the transition to the competitive service of an individual who is hired as a military technician in support of a unit of the Army Reserve or Air Force Reserve and who (as determined by the Secretary concerned) fails to maintain membership in the Selected Reserve through no fault of the individual.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The legislative proposal under paragraph (1) shall be developed in consultation with the Director of the Office of Personnel Management.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Conforming Repeal</inline>.—</heading><content>Section 8016 of Public Law 10461 (109 Stat. 654; 10 U.S.C. 10101 note) is repealed.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Cross-Reference Corrections</inline>.—</heading><content>Section 10216(c)(1) of title 10, United States Code, is amended by striking out “subsection (a)(1)” in subparagraphs (A), (B), (C), and (D) and inserting in lieu thereof “subsection (b)(1)”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num><heading><inline class="smallCaps">Conforming Amendments to Section 10216</inline>.—</heading><chapeau>Section 10216 of title 10, United States Code, is further amended as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The heading of subsection (b) is amended by inserting “<quotedText>(Dual Status)</quotedText>” after “Military Technicians”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>Subsection (b)(1) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by inserting “<quotedText>(dual status)</quotedText>” after “for military technicians”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking out “dual status military technicians” and inserting in lieu thereof “military technicians (dual status)”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>by inserting “<quotedText>(dual status)</quotedText>” after “military technicians” in subparagraph (C).<page identifier="/us/stat/111/1736">111 STAT. 1736</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Subsection (b)(2) is amended by inserting “<quotedText>(dual status)</quotedText>” after “military technicians” both places it appears.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Subsection (b)(3) is amended by inserting “<quotedText>(dual status)</quotedText>” after “Military technician”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><chapeau>Subsection (c) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>in the matter preceding paragraph (1)(A), by inserting “<quotedText>(dual status)</quotedText>” after “military technicians”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>in paragraph (1), by striking out “dual-status technicians” in subparagraphs (A), (B), (C), and (D) and inserting in lieu thereof ‘’military technicians (dual status)”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>in paragraph (2)(A), by inserting “<quotedText>(dual status)</quotedText>” after “military technician”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>in paragraph (2)(B), by striking out “delineate—” and all that follows through “or other reasons” in clause (ii) and inserting in lieu thereof “delineate the specific force structure reductions”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h) </num><heading><inline class="smallCaps">Clerical Amendments</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The heading of section 10216 of such title is amended to read as follows: <quotedContent> <section> <num value="10216">“§ 10216. </num><heading>Military technicians (dual status)”.</heading> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The item relating to such section in the table of sections at the beginning of chapter 1007 of such title is amended to read as follows: <quotedContent> <toc> <referenceItem role="section"><designator>“10216.</designator> <label>Military technicians (dual status).”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="i">(i) </num><heading><inline class="smallCaps">Other Conforming Amendments</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Section 115(g) of such title is amended by inserting “<quotedText>(dual status)</quotedText>” in the first sentence after “military technicians” and in the second sentence after “military technician”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>Section 115a(h) of such title is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by inserting “<quotedText>(displayed in the aggregate and separately for military technicians (dual status) and non-dual status military technicians)</quotedText>” in the matter preceding paragraph (1) after “of the following”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking out paragraph (3).</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="523">SEC. 523. </num><heading>NON-DUAL STATUS MILITARY TECHNICIANS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Chapter 1007 of title 10, United States Code, is amended by adding at the end the following new section: <quotedContent> <num value="10217">“§ 10217. </num><heading>Non-dual status military technicians</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Definition</inline>.—</heading><chapeau>For the purposes of this section and any other provision of law, a non-dual status military technician is a civilian employee of the Department of Defense serving in a military technician position who—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>was hired as a military technician before the date of the enactment of the National Defense Authorization Act for Fiscal Year 1998 under any of the authorities specified in subsection (c); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>as of the date of the enactment of that Act is not a member of the Selected Reserve or after such date ceased to be a member of the Selected Reserve.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Employment Authorities</inline>.—</heading><chapeau>The authorities referred to in subsection (a) are the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>Section 10216 of this title.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>Section 709 of title 32.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>The requirements referred to in section 8401 of title 5.<page identifier="/us/stat/111/1737">111 STAT. 1737</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>Section 8016 of the Department of Defense Appropriations Act, 1996 (Public Law 104–61; 109 Stat. 654), and any comparable provision of law enacted on an annual basis in the Department of Defense Appropriations Acts for fiscal years 1984 through 1995.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><content>Any memorandum of agreement between the Department of Defense and the Office of Personnel Management providing for the hiring of military technicians.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of such chapter is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“10217.</designator> <label>Non-dual status military technicians.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Limitation</inline>.—</heading><chapeau>The number of civilian employees of a military department who are non-dual status military technicians as of September 30, 1998, may not exceed the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>For the Army Reserve, 1,500.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>For the Army National Guard of the United States, 2,400.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>For the Air Force Reserve, 0.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>For the Air National Guard of the United States, 450.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Report Required</inline>.—</heading><chapeau>Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report containing the number of military technician positions that are held by non-dual status military technicians as of September 30, 1997, shown separately for each of the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The Army Reserve.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The Army National Guard of the United States.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The Air Force Reserve.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The Air National Guard of the United States.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Plan for Full Utilization of Military Technicians (Dual Status)</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s10217">10 USC 10217 note</ref>.</p></sidenote><paragraph class="inline"><num value="1">(1) </num><content>Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a plan for ensuring that, on and after September 30, 2007, all military technician positions are held only by military technicians (dual status).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The plan shall provide for achieving, by September 30, 2002, a 50 percent reduction, by conversion of positions or otherwise, in the number of non-dual status military technicians that are holding military technicians positions, as compared with the number of non-dual status technicians that held military technician positions as of September 30, 1997, as specified in the report under subsection (c).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><chapeau>Among the alternative actions to be considered in developing the plan, the Secretary shall consider the feasibility and cost of each of the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>Eliminating or consolidating technician functions and positions.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>Contracting with private sector sources for the performance of functions performed by military technicians.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>Converting non-dual status military technician positions to military technician (dual status) positions or to positions in the competitive service or, in the case of positions of the Army National Guard of the United States or the Air National Guard of the United States, to positions of State employment.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>Use of incentives to facilitate attainment of the objectives specified for the plan in paragraphs (1) and (2).<page identifier="/us/stat/111/1738">111 STAT. 1738</page></content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="4">(4) </num><content>The Secretary shall submit with the plan any recommendations for legislation that the Secretary considers necessary to carry out the plan.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Definitions for Categories of Military Technicians</inline>.—</heading><chapeau>In this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The term “non-dual status military technician” has the meaning given that term in section 10217 of title 10, United States Code, as added by subsection (a).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The term “military technician (dual status)” has the meaning given the term in section 10216(a) of such title.</content></paragraph> </subsection> </section> <section> <num value="524">SEC. 524. </num><heading>REPORT ON FEASIBILITY AND DESIRABILITY OF CONVERSION OF AGR PERSONNEL TO MILITARY TECHNICIANS (DUAL STATUS).</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Report Required</inline>.—</heading><chapeau>Not later than January 1, 1998, the Secretary of Defense shall submit to Congress a report on the feasibility and desirability of conversion of AGR personnel to military technicians (dual status). The report shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>identify advantages and disadvantages of such a conversion;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>identify possible savings if such a conversion were to be carried out; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>set forth the recommendation of the Secretary as to whether such a conversion should be made.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">AGR Personnel Defined</inline>.—</heading><content>For purposes of subsection (a), the term “AGR personnel” means members of the Army or Air Force reserve components who are on active duty (other than for training) in connection with organizing, administering, recruiting, instructing, or training their respective reserve components.</content> </subsection> </section> </subtitle> <subtitle> <num value="D">Subtitle D—</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s503">10 USC 503 note</ref>.</p></sidenote><heading>Measures To Improve Recruit Quality and Reduce Recruit Attrition</heading> <section> <num value="531">SEC. 531. </num><heading>REFORM OF MILITARY RECRUITING SYSTEMS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>The Secretary of Defense shall carry out reforms in the recruiting systems of the Army, Navy, Air Force, and Marine Corps in order to improve the quality of new recruits and to reduce attrition among recruits.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Specific Reforms</inline>.—</heading><chapeau>As part of the reforms in military recruiting systems to be undertaken under subsection (a), the Secretary shall take the following steps:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Improve the system of pre-enlistment waivers and separation codes used for recruits by (A) revising and updating those waivers and codes to allow more accurate and useful data collection about those separations, and (B) prescribing regulations to ensure that those waivers and codes are interpreted in a uniform manner by the military services.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Develop a reliable database for (A) analyzing (at both the Department of Defense and service-level) data on reasons for attrition of new recruits, and (B) undertaking Department of Defense or service-specific measures (or both) to control and manage such attrition.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Require that the Secretary of each military department (A) adopt or strengthen incentives for recruiters to thoroughly prescreen potential candidates for recruitment, and (B) link <page identifier="/us/stat/111/1739">111 STAT. 1739</page>incentives for recruiters, in part, to the ability of a recruiter to screen out unqualified candidates before enlistment.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Require that the Secretary of each military department include as a measurement of recruiter performance the percentage of persons enlisted by a recruiter who complete initial combat training or basic training.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Assess trends in the number and use of waivers over the 1991–1997 period that were issued to permit applicants to enlist with medical or other conditions that would otherwise be disqualifying.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>Require the Secretary of each military department to implement policies and procedures (A) to ensure the prompt separation of recruits who are unable to successfully complete basic training, and (B) to remove those recruits from the training environment while separation proceedings are pending.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than March 31, 1998, the Secretary shall submit to Congress a report of the trends assessed under subsection (b)(5). The information on those trends provided in the report shall be shown by armed force and by category of waiver. The report shall include recommendations of the Secretary for changing, revising, or limiting the use of waivers referred to in that subsection.</content> </subsection> </section> <section> <num value="532">SEC. 532. </num><heading>IMPROVEMENTS IN MEDICAL PRESCREENING OF APPLICANTS FOR MILITARY SERVICE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>The Secretary of Defense shall improve the medical prescreening of applicants for entrance into the Army, Navy, Air Force, or Marine Corps.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Specific Steps</inline>.—</heading><chapeau>As part of those improvements, the Secretary shall take the following steps:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Require that each applicant for service in the Army, Navy, Air Force, or Marine Corps (A) provide to the Secretary the name of the applicant’s medical insurer and the names of past medical providers, and (B) sign a release allowing the Secretary to request and obtain medical records of the applicant.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Require that the forms and procedures for medical prescreening of applicants that are used by recruiters and by Military Entrance Processing Commands be revised so as to ensure that medical questions are specific, unambiguous, and tied directly to the types of medical separations most common for recruits during basic training and follow-on training.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Add medical screening tests to the examinations of recruits carried out by Military Entrance Processing Stations, provide more thorough medical examinations to selected groups of applicants, or both, to the extent that the Secretary determines that to do so could be cost effective in reducing attrition at basic training.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Provide for an annual quality control assessment of the effectiveness of the Military Entrance Processing Commands in identifying medical conditions in recruits that existed before enlistment in the Armed Forces, each such assessment to be performed by an agency or contractor other than the Military Entrance Processing Commands.<page identifier="/us/stat/111/1740">111 STAT. 1740</page></content></paragraph> </subsection> </section> <section> <num value="533">SEC. 533. </num><heading>IMPROVEMENTS IN PHYSICAL FITNESS OF RECRUITS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>The Secretary of Defense shall take steps to improve the physical fitness of recruits before they enter basic training.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Specific Steps</inline>.—</heading><chapeau>As part of those improvements, the Secretary shall take the following steps:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Direct the Secretary of each military department to implement programs under which new recruits who are in the Delayed Entry Program are encouraged to participate in physical fitness activities before reporting to basic training.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Develop a range of incentives for new recruits to participate in physical fitness programs, as well as for those recruits who improve their level of fitness while in the Delayed Entry Program, which may include access to Department of Defense military fitness facilities, and access to military medical facilities in the case of a recruit who is injured while participating in physical activities with recruiters or other military personnel.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Evaluate whether partnerships between recruiters and reserve components, or other innovative arrangements, could provide a pool of qualified personnel to assist in the conduct of physical training programs for new recruits in the Delayed Entry Program.</content></paragraph> </subsection> </section> </subtitle> <subtitle> <num value="E">Subtitle E—</num><heading>Military Education and Training</heading> <part> <num value="I">PART I—</num><heading>OFFICER EDUCATION PROGRAMS</heading> <section> <num value="541">SEC. 541. </num><heading>REQUIREMENT FOR CANDIDATES FOR ADMISSION TO UNITED STATES NAVAL ACADEMY TO TAKE OATH OF ALLEGIANCE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Requirement</inline>.—</heading><content>Section 6958 of title 10, United States Code, is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><content>To be admitted to the Naval Academy, an appointee must take and subscribe to an oath prescribed by the Secretary of the Navy. If a candidate for admission refuses to take and subscribe to the prescribed oath, the candidate’s appointment is terminated.”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Exception for Midshipmen From Foreign Countries</inline>.—</heading><content>Section 6957 of such title is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><content>A person receiving instruction under this section is not subject to section 6958(d) of this title.”.</content> </subsection> </quotedContent> </content></subsection> </section> <section> <num value="542">SEC. 542. </num><heading>SERVICE ACADEMY FOREIGN EXCHANGE PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">United States Military Academy</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Chapter 403 of title 10, United States Code, is amended by inserting after section 4344 the following new section: <quotedContent> <section> <num value="4345">“§ 4345. </num><heading>Exchange program with foreign military academies</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Exchange Program Authorized</inline>.—</heading><content>The Secretary of the Army may permit a student enrolled at a military academy of a foreign country to receive instruction at the Academy in exchange for a cadet receiving instruction at that foreign military academy pursuant to an exchange agreement entered into between the Secretary and appropriate officials of the foreign country. Students receiving instruction at the Academy under the exchange program <page identifier="/us/stat/111/1741">111 STAT. 1741</page>shall be in addition to persons receiving instruction at the Academy under section 4344 of this title.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Limitations on Number and Duration of Exchanges</inline>.—</heading><content>An exchange agreement under this section between the Secretary and a foreign country shall provide for the exchange of students on a one-for-one basis each fiscal year. Not more than 10 cadets and a comparable number of students from all foreign military academies participating in the exchange program may be exchanged during any fiscal year. The duration of an exchange may not exceed the equivalent of one academic semester at the Academy.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Costs and Expenses</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>A student from a military academy of a foreign country is not entitled to the pay, allowances, and emoluments of a cadet by reason of attendance at the Academy under the exchange program, and the Department of Defense may not incur any cost of international travel required for transportation of such a student to and from the sponsoring foreign country.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The Secretary may provide a student from a foreign country under the exchange program, during the period of the exchange, with subsistence, transportation within the continental United States, clothing, health care, and other services to the same extent that the foreign country provides comparable support and services to the exchanged cadet in that foreign country.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>The Academy shall bear all costs of the exchange program from funds appropriated for the Academy. Expenditures in support of the exchange program may not exceed $50,000 during any fiscal year.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Application of Other Laws</inline>.—</heading><content>Subsections (c) and (d) of section 4344 of this title shall apply with respect to a student enrolled at a military academy of a foreign country while attending the Academy under the exchange program.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Regulations</inline>.—</heading><content>The Secretary shall prescribe regulations to implement this section. Such regulations may include qualification criteria and methods of selection for students of foreign military academies to participate in the exchange program”.</content> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 4344 the following new item: <quotedContent> <referenceItem role="section"><designator>“4345.</designator> <label>Exchange program with foreign military academies.”.</label></referenceItem> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Naval Academy</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Chapter 603 of title 10, United States Code, is amended by inserting after section 6957 the following new section: <quotedContent> <section> <num value="6957a">“§ 6957a. </num><heading>Exchange program with foreign military academies</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Exchange Program Authorized</inline>.—</heading><content>The Secretary of the Navy may permit a student enrolled at a military academy of a foreign country to receive instruction at the Naval Academy in exchange for a midshipman receiving instruction at that foreign military academy pursuant to an exchange agreement entered into between the Secretary and appropriate officials of the foreign country. Students receiving instruction at the Academy under the exchange program shall be in addition to persons receiving instruction at the Academy under section 6957 of this title.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Limitations on Number and Duration of Exchanges</inline>.—</heading><content>An exchange agreement under this section between the Secretary and a foreign country shall provide for the exchange of students <page identifier="/us/stat/111/1742">111 STAT. 1742</page>on a one-for-one basis each fiscal year. Not more than 10 midshipmen and a comparable number of students from all foreign military academies participating in the exchange program may be exchanged during any fiscal year. The duration of an exchange may not exceed the equivalent of one academic semester at the Naval Academy.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Costs and Expenses</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>A student from a military academy of a foreign country is not entitled to the pay, allowances, and emoluments of a midshipman by reason of attendance at the Naval Academy under the exchange program, and the Department of Defense may not incur any cost of international travel required for transportation of such a student to and from the sponsoring foreign country.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The Secretary may provide a student from a foreign country under the exchange program, during the period of the exchange, with subsistence, transportation within the continental United States, clothing, health care, and other services to the same extent that the foreign country provides comparable support and services to the exchanged midshipman in that foreign country.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>The Naval Academy shall bear all costs of the exchange program from funds appropriated for the Academy. Expenditures in support of the exchange program may not exceed $50,000 during any fiscal year.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Application of Other Laws</inline>.—</heading><content>Subsections (c) and (d) of section 6957 of this title shall apply with respect to a student enrolled at a military academy of a foreign country while attending the Naval Academy under the exchange program.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Regulations</inline>.—</heading><content>The Secretary shall prescribe regulations to implement this section. Such regulations may include qualification criteria and methods of selection for students of foreign military academies to participate in the exchange program.”.</content> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 6957 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“6957a.</designator> <label>Exchange program with foreign military academies.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Air Force Academy</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Chapter 903 of title 10, United States Code, is amended by inserting after section 9344 the following new section: <quotedContent> <section> <num value="9345">“§ 9345. </num><heading>Exchange program with foreign military academies</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Exchange Program Authorized</inline>.—</heading><content>The Secretary of the Air Force may permit a student enrolled at a military academy of a foreign country to receive instruction at the Air Force Academy in exchange for an Air Force cadet receiving instruction at that foreign military academy pursuant to an exchange agreement entered into between the Secretary and appropriate officials of the foreign country. Students receiving instruction at the Academy under the exchange program shall be in addition to persons receiving instruction at the Academy under section 9344 of this title.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Limitations on Number and Duration of Exchanges</inline>.—</heading><content>An exchange agreement under this section between the Secretary and a foreign country shall provide for the exchange of students on a one-for-one basis each fiscal year. Not more than 10 Air Force cadets and a comparable number of students from all foreign military academies participating in the exchange program may be exchanged during any fiscal year. The duration of an exchange <page identifier="/us/stat/111/1743">111 STAT. 1743</page>may not exceed the equivalent of one academic semester at the Air Force Academy.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Costs and Expenses</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>A student from a military academy of a foreign country is not entitled to the pay, allowances, and emoluments of an Air Force cadet by reason of attendance at the Air Force Academy under the exchange program, and the Department of Defense may not incur any cost of international travel required for transportation of such a student to and from the sponsoring foreign country.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The Secretary may provide a student from a foreign country under the exchange program, during the period of the exchange, with subsistence, transportation within the continental United States, clothing, health care, and other services to the same extent that the foreign country provides comparable support and services to the exchanged Air Force cadet in that foreign country.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>The Air Force Academy shall bear all costs of the exchange program from funds appropriated for the Academy. Expenditures in support of the exchange program may not exceed $50,000 during any fiscal year.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Application of Other Laws</inline>.—</heading><content>Subsections (c) and (d) of section 9344 of this title shall apply with respect to a student enrolled at a military academy of a foreign country while attending the Air Force Academy under the exchange program.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Regulations</inline>.—</heading><content>The Secretary shall prescribe regulations to implement this section. Such regulations may include qualification criteria and methods of selection for students of foreign military academies to participate in the exchange program”.</content> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 9344 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“9345.</designator> <label>Exchange program with foreign military academies.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Repeal of Obsolete Limitation</inline>.—</heading><content>Section 9353(a) of such title is amended by striking out “After the date of the accrediting of the Academy, the” and inserting in lieu thereof “The”.</content> </subsection> </section> <section> <num value="543">SEC. 543. </num><heading>REIMBURSEMENT OF EXPENSES INCURRED FOR INSTRUCTION AT SERVICE ACADEMIES OF PERSONS FROM FOREIGN COUNTRIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">United States Military Academy</inline>.—</heading><chapeau>Section 4344(b) of title 10, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in paragraph (2), by striking out the period at the end and inserting in lieu thereof the following: “, except that the reimbursement rates may not be less than the cost to the United States of providing such instruction, including pay, allowances, and emoluments, to a cadet appointed from the United States.”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>The amount of reimbursement waived under paragraph (2) may not exceed 35 percent of the per-person reimbursement amount otherwise required to be paid by a foreign country under such paragraph, except in the case of not more than five persons receiving instruction at the Academy under this section at any one time.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Naval Academy</inline>.—</heading><chapeau>Section 6957(b) of such title is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in paragraph (2), by striking out the period at the end and inserting in lieu thereof the following: “, except that <page identifier="/us/stat/111/1744">111 STAT. 1744</page>the reimbursement rates may not be less than the cost to the United States of providing such instruction, including pay, allowances, and emoluments, to a midshipman appointed from the United States.”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>The amount of reimbursement waived under paragraph (2) may not exceed 35 percent of the per-person reimbursement amount otherwise required to be paid by a foreign country under such paragraph, except in the case of not more than five persons receiving instruction at the Naval Academy under this section at any one time.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Air Force Academy</inline>.—</heading><chapeau>Section 9344(b) of such title is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in paragraph (2), by striking out the period at the end and inserting in lieu thereof the following: “, except that the reimbursement rates may not be less than the cost to the United States of providing such instruction, including pay, allowances, and emoluments, to a cadet appointed from the United States.”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>The amount of reimbursement waived under paragraph (2) may not exceed 35 percent of the per-person reimbursement amount otherwise required to be paid by a foreign country under such paragraph, except in the case of not more than five persons receiving instruction at the Air Force Academy under this section at any one time.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s4344">10 USC 4344 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section apply with respect to students from a foreign country entering the United States Military Academy, the United States Naval Academy, or the United States Air Force Academy on or after May 1, 1998.</content> </subsection> </section> <section> <num value="544">SEC. 544. </num><heading>CONTINUATION OF SUPPORT TO SENIOR MILITARY COLLEGES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2111a">10 USC 2111a note</ref>.</p></sidenote><heading><inline class="smallCaps">Definition of Senior Military Colleges</inline>.—</heading><chapeau>For purposes of this section, the term “senior military colleges” means the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Texas A&M University.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Norwich University.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The Virginia Military Institute.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The Citadel.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Virginia Polytechnic Institute and State University.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>North Georgia College and State University.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2111a">10 USC 2111a note</ref>.</p></sidenote><heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>Congress finds the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The senior military colleges consistently have provided substantial numbers of highly qualified, long-serving leaders to the Armed Forces.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The quality of the military leaders produced by the senior military colleges is, in part, the result of the rigorous military environment imposed on students attending the senior military colleges by the colleges, as well as the result of the long-standing close support relationship between the Corps of Cadets at each college and the Reserve Officer Training Corps personnel at the colleges who serve as effective leadership role models and mentors.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>In recognition of the quality of the young leaders produced by the senior military colleges, the Department of <page identifier="/us/stat/111/1745">111 STAT. 1745</page>Defense and the military services have traditionally maintained special relationships with the colleges, including the policy to grant active duty service in the Army to graduates of the colleges who desire such service and who are recommended for such service by their ROTC professors of military science.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Each of the senior military colleges has demonstrated an ability to adapt its systems and operations to changing conditions in, and requirements of, the Armed Forces without compromising the quality of leaders produced and without interruption of the dose relationship between the colleges and the Department of Defense.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Sense of Congress</inline>.—</heading><chapeau>In light of the findings in subsection<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2111a">10 USC 2111a note</ref>.</p></sidenote> (b), it is the sense of Congress that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the proposed initiative of the Secretary of the Army to end the commitment to active duty service for all graduates of senior military colleges who desire such service and who are recommended for such service by their ROTC professors of military science is short-sighted and contrary to the longterm interests of the Army;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>as they have in the past, the senior military colleges can and will continue to accommodate to changing military requirements to ensure that future graduates entering military service continue to be officers of superb quality who are quickly assimilated by the Armed Forces and fully prepared to make significant contributions to the Armed Forces through extended military careers; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>decisions of the Secretary of Defense or the Secretary of a military department that fundamentally and unilaterally change the long-standing relationship of the Armed Forces with the senior military colleges are not in the best interests of the Department of Defense or the Armed Forces and are patently unfair to students who made decisions to enroll in the senior military colleges on the basis of existing Department and Armed Forces policy.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Continuation of Support for Senior Military Colleges</inline>.—</heading><chapeau>Section 2111a of title 10, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by redesignating subsection (d) as subsection (f); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting after subsection (c) the following new subsections: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Termination or Reduction of Program Prohibited</inline>.—</heading><content>The Secretary of Defense and the Secretaries of the military departments may not take or authorize any action to terminate or reduce a unit of the Senior Reserve Officers’ Training Corps at a senior military college unless the termination or reduction is specifically requested by the college.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Assignment to Active Duty</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of the Army shall ensure that a graduate of a senior military college who desires to serve as a commissioned officer on active duty upon graduation from the college, who is medically and physically qualified for active duty, and who is recommended for such duty by the professor of military science at the college, shall be assigned to active duty. This paragraph shall apply to a member of the program at a senior military college who graduates from the college after March 31, 1997.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>Nothing in this section shall be construed to prohibit the Secretary of the Army from requiring a member of the program <page identifier="/us/stat/111/1746">111 STAT. 1746</page>who graduates from a senior military college to serve on active duty.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Technical Corrections</inline>.—</heading><chapeau>Subsection (f) of such section, as redesignated by subsection (d)(1), is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in paragraph (2), by striking out “College” and inserting in lieu thereof “University”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in paragraph (6), by inserting before the period the following: “and State University”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Clerical Amendments</inline>.—</heading><paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The heading of such section is amended to read as follows: <quotedContent> <section> <num value="2111a">“§ 2111a. </num><heading>Support for senior military colleges”.</heading> </section> </quotedContent> </content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The item relating to such section in the table of sections at the beginning of chapter 103 of title 10, United States Code, is amended to read as follows: <quotedContent> <toc> <referenceItem role="section"><designator>“2111a.</designator> <label>Support for senior military colleges.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> </section> <section> <num value="545">SEC. 545. </num><heading>REPORT ON MAKING UNITED STATES NATIONALS ELIGIBLE FOR PARTICIPATION IN SENIOR RESERVE OFFICERS’ TRAINING CORPS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the Committee on National Security of the House of Representatives and the Committee on Armed Services of the Senate a report on the utility of permitting United States nationals to participate in the Senior Reserve Officers’ Training Corps program.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Required Information</inline>.—</heading><chapeau>The Secretary shall include in the report the following information:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>A brief history of the prior admission of United States nationals to the Senior Reserve Officers’ Training Corps, including the success rate of these cadets and midshipmen and how that rate compared to the average success rate of cadets and midshipmen during that same period.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The advantages of permitting United States nationals to participate in the Senior Reserve Officers’ Training Corps program.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The disadvantages of permitting United States nationals to participate in the Senior Reserve Officers’ Training Corps program.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The incremental cost of including United States nationals in the Senior Reserve Officers’ Training Corps.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Methods of minimizing the risk that United States nationals admitted to the Senior Reserve Officers’ Training Corps would be later disqualified because of ineligibility for United States citizenship.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>The recommendations of the Secretary on whether United States nationals should be eligible to participate in the Senior Reserve Officers’ Training Corps program, and if so, a legislative proposal which would, if enacted, achieve that result.</content></paragraph> </subsection> </section> <section> <num value="546">SEC. 546. </num><heading>COORDINATION OF ESTABLISHMENT AND MAINTENANCE OF JUNIOR RESERVE OFFICERS’ TRAINING CORPS UNITS TO MAXIMIZE ENROLLMENT AND ENHANCE EFFICIENCY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Requirement</inline>.—</heading><content>Chapter 102 of title 10, United States Code, is amended by adding at the end the following new section:<page identifier="/us/stat/111/1747">111 STAT. 1747</page> <quotedContent> <section> <num value="2032">“§ 2032. </num><heading>Responsibility of the Secretaries of the military departments to maximize enrollment and enhance efficiency</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Coordination</inline>.—</heading><content>The Secretary of each military department, in establishing, maintaining, transferring, and terminating Junior Reserve Officers’ Training Corps units under section 2031 of this title, shall do so in a coordinated manner that is designed to maximize enrollment in the Corps and to enhance administrative efficiency in the management of the Corps.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Consideration of New School Openings and Consolidations</inline>.—</heading><chapeau>In carrying out subsection (a), the Secretary of a military department shall take into consideration—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>openings of new schools;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>consolidations of schools; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>the desirability of continuing the opportunity for participation in the Corps by participants whose continued participation would otherwise be adversely affected by new school openings and consolidations of schools.”.</content></paragraph> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections at the beginning of such chapter is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“2032.</designator> <label>Responsibility of the Secretaries of the military departments to maximize enrollment and enhance efficiency.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> </part> <part> <num value="II">PART II—</num><heading>OTHER EDUCATION MATTERS</heading> <section> <num value="551">SEC. 551. </num><heading>UNITED STATES NAVAL POSTGRADUATE SCHOOL.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Authority To Admit Enlisted Members as Students</inline>.—</heading><chapeau>Section 7045 of title 10, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>in subsection (a)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by inserting “<quotedText>(1)</quotedText>” after “(a)”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The Secretary may permit an enlisted member of the armed forces who is assigned to the Naval Postgraduate School or to a nearby command to receive instruction at the Naval Postgraduate School. Admission of enlisted members for instruction under this paragraph shall be on a space-available basis.”;</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>in subsection (b)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking out “the students” and inserting in lieu thereof “officers”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by adding at the end the following new sentence: “In the case of an enlisted member permitted to receive instruction at the Postgraduate School, the Secretary of the Navy shall charge that member only for such costs and fees as the Secretary considers appropriate (taking into consideration the admission of enlisted members on a space-available basis).”; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><chapeau>in subsection (c)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking out “officers” both places it appears and inserting in lieu thereof “members”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking out “same regulations” and inserting in lieu thereof “such regulations, as determined appropriate by the Secretary of the Navy,”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendments</inline>.—</heading><paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The heading of section 7045 of such title is amended to read as follows:<page identifier="/us/stat/111/1748">111 STAT. 1748</page> <quotedContent> <section> <num value="7045">“§ 7045. </num><heading>Officers of the other armed forces; enlisted members: admission”.</heading> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The item relating to section 7045 in the table of sections at the beginning of chapter 605 of such title is amended to read as follows: <quotedContent> <toc> <referenceItem role="section"><designator>“7045.</designator> <label>Officers of the other armed forces; enlisted members: admission”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Amendment To Reflect Revised Civil Service Grade Structure</inline>.—</heading><content>Section 7043(b) of such title is amended by striking out “grade GS–18 of the General Schedule under section 5332 of title 5” and inserting in lieu thereof “level IV of the Executive Schedule”.</content> </subsection> </section> <section> <num value="552">SEC. 552. </num><heading>COMMUNITY COLLEGE OF THE AIR FORCE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Expansion of Members Eligible for Program To Include Instructors at Air Force Training Schools</inline>.—</heading><chapeau>Section 9315 of title 10, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subsection (a)(1), by striking out “enlisted members of the Air Force” and inserting in lieu thereof “enlisted members described in subsection (b)”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking out “(b) Subject to subsection (c),” and inserting in lieu thereof “(c)(1) Subject to paragraph (2),”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by redesignating subsection (c) as paragraph (2) and in that paragraph redesignating clauses (1) and (2) as clauses (A) and (B), respectively; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>by inserting after subsection (a) the following new subsection (b): <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Members Eligible for Programs</inline>.—</heading><chapeau>Subject to such other eligibility requirements as the Secretary concerned may prescribe, the following members of the armed forces are eligible to participate in programs of higher education under subsection (a)(1):</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>Enlisted members of the Air Force.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>Enlisted members of the armed forces other than the Air Force who are serving as instructors at Air Force training schools.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendments</inline>.—</heading><chapeau>Such section is further amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subsection (a), by inserting “<quotedText><inline class="smallCaps">Establishment and Mission</inline>.—</quotedText>” after “(a)”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in subsection (c), as redesignated by subsection (a)(2), by inserting “<quotedText>Conferral OF Degrees.—</quotedText>” after “(c)”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s9315">10 USC 9315 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>Subsection (b) of section 9315 of such title, as added by subsection (a)(4), applies with respect to enrollments in the Community College of the Air Force after March 31, 1996.</content> </subsection> </section> <section> <num value="553">SEC. 553. </num><heading>PRESERVATION OF ENTITLEMENT TO EDUCATIONAL ASSISTANCE OF MEMBERS OF THE SELECTED RESERVE SERVING ON ACTIVE DUTY IN SUPPORT OF A CONTINGENCY OPERATION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Preservation of Educational Assistance</inline>.—</heading><content>Section 16131(c)(3)(B)(i) of title 10, United States Code, is amended by striking out “, in connection with the Persian Gulf War,”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Extension of 10-Year Period of Availability</inline>.—</heading><chapeau>Section 16133(b)(4) of such title is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out “(A)”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking out “, during the Persian Gulf War,”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively; and <page identifier="/us/stat/111/1749">111 STAT. 1749</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>by striking out “(B) For the purposes” and all that follows through “title 38.”.</content></paragraph> </subsection> </section> </part> <part> <num value="III">PART III—</num><heading>TRAINING OF ARMY DRILL SERGEANTS</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s4318">10 USC 4318 note</ref>.</p></sidenote> <section> <num value="556">SEC. 556. </num><heading>REFORM OF ARMY DRILL SERGEANT SELECTION AND TRAINING PROCESS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>The Secretary of the Army shall reform the process for selection and training of drill sergeants for the Army.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Measures To Be Taken</inline>.—</heading><chapeau>As part of such reform, the Secretary shall undertake the following measures (unless, in the case of any such measure, the Secretary determines that that measure would not result in improved effectiveness and efficiency in the drill sergeant selection and training process):</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>Review the overall process used by the Department of the Army for selection of drill sergeants to determine—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>whether that process is providing drill sergeant candidates in sufficient quantity and quality to meet the needs of the training system; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>whether duty as a drill sergeant is a career-enhancing assignment (or is seen by potential drill sergeant candidates as a career-enhancing assignment) and what steps could be taken to ensure that such duty is in fact a career-enhancing assignment.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Incorporate into the selection process for all drill sergeants the views and recommendations of the officers and senior noncommissioned officers in the chain of command of each candidate for selection (particularly those of senior noncommissioned officers) regarding the candidate’s suitability and qualifications to be a drill sergeant.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Establish a requirement for psychological screening for each drill sergeant candidate.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Reform the psychological screening process for drill sergeant candidates to improve the quality, depth, and rigor of that screening process.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Revise the evaluation system for drill sergeants in training to provide for a so-called “whole person” assessment that gives insight into the qualifications and suitability of a drill sergeant candidate beyond the candidate’s ability to accomplish required performance tasks.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>Revise the Army military personnel records system so that, under conditions and circumstances to be specified in regulations prescribed by the Secretary, a drill sergeant trainee who fails to complete the training to be a drill sergeant and is denied graduation will not have the fact of that failure recorded in those personnel records.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>Provide each drill sergeant in training with the opportunity, before or during that training, to work with new recruits in initial entry training and to be evaluated on that opportunity.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than March 31, 1998, the Secretary shall submit to the Committee on National Security of the House of Representatives and the Committee on Armed Services of the Senate a report of the reforms adopted pursuant to this section or, in the case of any measure specified in any of paragraphs (1) through (7) of subsection (b) that was not adopted, the rationale why that measure was not adopted.<page identifier="/us/stat/111/1750">111 STAT. 1750</page></content> </subsection> </section> <section> <num value="557">SEC. 557. </num><heading>TRAINING IN HUMAN RELATIONS MATTERS FOR ARMY DRILL SERGEANT TRAINEES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Chapter 401 of title 10, United States Code, is amended by adding at the end the following new section: <quotedContent> <section> <num value="4318">“§ 4318. </num><heading>Drill sergeant trainees: human relations training</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Human Relations Training Required</inline>.—</heading><content>The Secretary of the Army shall include as part of the training program for drill sergeants a course in human relations. The course shall be a minimum of two days in duration.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Resources</inline>.—</heading><content>In developing a human relations course under this section, the Secretary shall use the capabilities and expertise of the Defense Equal Opportunity Management Institute (DEOMI).”</content> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of such chapter is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“4318.</designator> <label>Drill sergeant trainees: human relations training.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s4318">10 USC 4318 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>Section 4318 of title 10, United States Code, as added by subsection (a), shall apply with respect drill sergeant trainee classes that begin after the end of the 90-day period beginning on the date of the enactment of this Act.</content> </subsection> </section> </part> </subtitle> <subtitle> <num value="F">Subtitle F—</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s113">10 USC 113 note</ref>.</p></sidenote><heading>Commission on Military Training and Gender-Related Issues</heading> <section> <num value="561">SEC. 561. </num><heading>ESTABLISHMENT AND COMPOSITION OF COMMISSION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Establishment</inline>.—</heading><content>There is established a Commission on Military Training and Gender-Related Issues to review requirements and restrictions regarding cross-gender relationships of members of the Armed Forces, to review the basic training programs of the Army, Navy, Air Force, and Marine Corps, and to make recommendations on improvements to those programs, requirements, and restrictions.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Composition</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>The commission shall be composed of 10 members, appointed as follows:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>Five members shall be appointed jointly by the chairman and ranking minority party member of the Committee on National Security of the House of Representatives.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>Five members shall be appointed jointly by the chairman and ranking minority party member of the Committee on Armed Services of the Senate.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The members of the commission shall choose one of the members to serve as chairman.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><content>All members of the commission shall be appointed not later than 45 days after the date of the enactment of this Act.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Qualifications</inline>.—</heading><chapeau>Members of the commission shall be appointed from among private United States citizens with knowledge and expertise in one or more of the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Training of military personnel.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Social and cultural matters affecting entrance into the Armed Forces and affecting military service, military training, and military readiness, such knowledge and expertise to have been gained through recognized research, policy making and practical experience, as demonstrated by retired military personnel, members of the reserve components of the Armed <page identifier="/us/stat/111/1751">111 STAT. 1751</page>Forces, representatives from educational organizations, and leaders from civilian industry and other Government agencies.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Factors that define appropriate military job qualifications, including physical, mental, and educational factors.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Combat or other theater of war operations.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Organizational matters.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>Legal matters.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>Management.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>Gender integration matters.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Appointments</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Members of the commission shall be appointed for the life of the commission.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>A vacancy in the membership shall not affect the commission’s powers, but shall be filled in the same manner as the original appointment.</content></paragraph> </subsection> </section> <section> <num value="562">SEC. 562. </num><heading>DUTIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Functions Relating to Requirements and Restrictions Regarding Cross-Gender Relationships</inline>.—</heading><chapeau>The commission shall consider issues relating to personal relationships of members of the Armed Forces as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Review the laws, regulations, policies, directives, and practices that govern personal relationships between men and women in the Armed Forces and personal relationships between members of the Armed Forces and non-military personnel of the opposite sex.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Assess the extent to which the laws, regulations, policies, and directives have been applied consistently throughout the Armed Forces without regard to the armed force, grade, rank, or gender of the individuals involved.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Assess the reports of the independent panel, the Department of Defense task force, and the review of existing guidance on fraternization and adultery that have been required by the Secretary of Defense.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Functions Relating to Gender-Integrated and Gender-Segregated Basic Training</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The commission shall review the parts of the initial entry training programs of the Army, Navy, Air Force, and Marine Corps that constitute the basic training of new recruits (in this subtitle referred to as “basic training”). The review shall include a review of the basic training policies and practices of each of those services with regard to gender-integrated and gender-segregated basic training and, for each of the services, the effectiveness of gender-integrated and gender-segregated basic training.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>As part of the review under paragraph (1), the commission shall (with respect to each of the services) take the following measures:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>Determine how each service defines gender-integration and gender-segregation in the context of basic training.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>Determine the historical rationales for the establishment and disestablishment of gender-integrated or gender-segregated basic training.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><content>Examine, with respect to each service, the current rationale for the use of gender-integrated or gender-segregated basic training and the rationale that was current as of the time the service made a decision to integrate, or to segregate, basic training by gender (or as of the time of the most recent decision to continue to use a gender-integrated format or a <page identifier="/us/stat/111/1752">111 STAT. 1752</page>gender-segregated format for basic training), and, as part of the examination, evaluate whether at the time of that decision, the Secretary of the military department with jurisdiction over that service had substantive reason to believe, or has since developed data to support, that gender-integrated basic training, or gender-segregated basic training, improves the readiness or performance of operational units.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="D">(D) </num><content>Assess whether the concept of “training as you will fight” is a valid rationale for gender-integrated basic training or whether the training requirements and objectives for basic training are sufficiently different from those of operational units so that such concept, when balanced against other factors relating to basic training, might not be a sufficient rationale for gender-integrated basic training.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="E">(E) </num><content>Identify the requirements unique to each service that could affect a decision by the Secretary concerned to adopt a gender-integrated or gender-segregated format for basic training and assess whether the format in use by each service has been successful in meeting those requirements.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="F">(F) </num><content>Assess, with respect to each service, the degree to which different standards nave been established, or if not established are in fact being implemented, for males and females in basic training for matters such as physical fitness, physical performance (such as confidence and obstacle courses), military skills (such as marksmanship and hand-grenade qualifications), and nonphysical tasks required of individuals and, to the degree that differing standards exist or are in fact being implemented, assess the effect of the use of those differing standards.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="G">(G) </num><content>Identify the goals that each service has set forth in regard to readiness, in light of the gender-integrated or gender-segregated format that such service has adopted for basic training, and whether that format contributes to the readiness of operational units.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="H">(H) </num><content>Assess the degree to which performance standards in basic training are based on military readiness.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="I">(I) </num><content>Evaluate the policies of each of the services regarding the assignment of adequate numbers of female drill instructors in gender-integrated training units who can serve as role models and mentors for female trainees.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="J">(J) </num><content>Review Department of Defense and military department efforts to objectively measure or evaluate the effectiveness of gender-integrated basic training, as compared to gender-segregated basic training, particularly with regard to the adequacy and scope of the efforts and with regard to the relevancy of findings to operational unit requirements, and determine whether the Department of Defense and the military departments are capable of measuring or evaluating the effectiveness of that training format objectively.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="K">(K) </num><content>Compare the pattern of attrition in gender-integrated basic training units with the pattern of attrition in gender-segregated basic training units and assess the relevancy of the findings of such comparison.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="L">(L) </num><content>Compare the level of readiness and morale of gender-integrated basic training units with the level of readiness and morale of gender-segregated units, and assess the relevancy of the findings of such comparison and the implications, for readiness, of any differences found.<page identifier="/us/stat/111/1753">111 STAT. 1753</page></content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="M">(M) </num><content>Compare the experiences, policies, and practices of the armed forces of other industrialized nations regarding gender-integrated training with those of the Army, Navy, Air Force, and Marine Corps.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="N">(N) </num><content>Review, and take into consideration, the current practices, relevant studies, and private sector training concepts pertaining to gender-integrated training.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="O">(O) </num><content>Assess the feasibility and implications of conducting basic training (or equivalent training) at the company level and below through separate units for male and female recruits, including the costs and other resource commitments required to implement and conduct basic training in such a manner and the implications for readiness and unit cohesion.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="P">(P) </num><content>Assess the feasibility and implications of requiring drill instructors for basic training units to be of the same sex as the recruits in those units if the basic training were to be conducted as described in subparagraph (O).</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Functions Relating to Basic Training Programs Generally</inline>.—</heading><chapeau>The commission shall review the course objectives, structure, and length of the basic training programs of the Army, Navy, Air Force, and Marine Corps. The commission shall also review the relationship between those basic training objectives and the advanced training provided in the initial entry training programs of each of those services. As part of that review, the commission shall (with respect to each of those services) take the following measures:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>Determine the current end-state objectives established for graduates of basic training, particularly in regard to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>physical conditioning;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>technical and physical skills proficiency;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>knowledge;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>military socialization, including the inculcation of service values and attitudes; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E) </num><content>basic combat operational requirements.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>Assess whether those current end-state objectives, and basic training itself, should be modified (in structure, length, focus, program of instruction, training methods or otherwise) based, in part, on the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>An assessment of the perspectives of operational units on the quality and qualifications of the initial entry training graduates being assigned to those units, considering in particular whether the basic training system produces graduates who arrive in operational units with an appropriate level of skills, physical conditioning, and degree of military socialization to meet unit requirements and needs.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>An assessment of the demographics, backgrounds, attitudes, experience, and physical fitness of new recruits entering basic training, considering in particular the question of whether, given the entry level demographics, education, and background of new recruits, the basic training systems and objectives are most efficiently and effectively structured and conducted to produce graduates who meet service needs.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>An assessment of the perspectives of personnel who conduct basic training with regard to measures required to improve basic training.<page identifier="/us/stat/111/1754">111 STAT. 1754</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Assess the extent to which the initial entry training programs of each of the services continue, after the basic training phases of the programs, effectively to reinforce and advance the military socialization (including the inculcation of service values and attitudes), the physical conditioning, and the attainment and improvement of knowledge and proficiency in fundamental military skills that are begun in basic training.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Recommendations</inline>.—</heading><chapeau>The commission shall prepare—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>with respect to each of the Army, Navy, Air Force, and Marine Corps, an evaluation of gender-integrated and gender-segregated basic training programs, based upon the review under subsection (b);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>recommendations for such changes to the current system of basic training as the commission considers warranted; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>recommendations for such changes to laws, regulations, policies, directives, and practices referred to in subsection (a)(1) as the commission considers warranted.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Reports</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Not later than April 15, 1998, the commission shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report setting forth a strategic plan for the work of the commission and the activities and initial findings of the commission.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Not later than September 16, 1998, the commission shall submit a final report to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives. The final report shall set forth the activities, findings, and recommendations of the commission, including any recommendations for congressional action and administrative action that the commission considers appropriate. The report shall specifically set forth the views of the Secretaries of the military departments regarding the matters described in subparagraphs (O) and (P) of subsection (b)(2).</content></paragraph> </subsection> </section> <section> <num value="563">SEC. 563. </num><heading>ADMINISTRATIVE MATTERS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Meetings</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The commission shall hold its first meeting not later than 30 days after the date on which all members have been appointed.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The commission shall meet upon the call of the chairman.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>A majority of the members of the commission shall constitute a quorum, but a lesser number may hold meetings.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Authority of Individuals To Act for Commission</inline>.—</heading><content>Any member or agent of the commission may, if authorized by the commission, take any action which the commission is authorized to take under this title.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Powers</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The commission may hold such hearings, sit and act at such times and places, take such testimony, and receive such evidence as the commission considers advisable to carry out its duties.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The commission may secure directly from the Department of Defense and any other department or agency of the Federal Government such information as the commission considers necessary to carry out its duties. Upon the request of the chairman of the commission, the head of a department or agency shall furnish the requested information expeditiously to the commission.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><content>The commission may use the United States mails in the same manner and under the same conditions as other departments and agencies of the Federal Government.<page identifier="/us/stat/111/1755">111 STAT. 1755</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Pay and Expenses of Commission Members</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Each member of the commission who is not an employee of the Government shall be paid at a rate equal to the daily equivalent of the annual rate of basic pay prescribed for level IV of the Executive Schedule under section 5315 of title 5, United States Code, for each day (including travel time) during which such member is engaged in performing the duties of the commission.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Members and personnel of the commission may travel on aircraft, vehicles, or other conveyances of the Armed Forces when travel is necessary in the performance of a duty of the commission except when the cost of commercial transportation is less expensive.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><content>The members of the commission may be allowed travel expenses, including per diem in lieu of subsistence, at rates authorized for employees of agencies under subchapter I of chapter 57 of title 5, United States Code, while away from their homes or regular places of business in the performance of services for the commission.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="4">(4) </num><subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>A member of the commission who is an annuitant otherwise covered by section 8344 or 8468 of title 5, United States Code, by reason of membership on the commission shall not be subject to the provisions of such section with respect to such membership.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">(B) </num><content>A member of the commission who is a member or former member of a uniformed service shall not be subject to the provisions of subsections (b) and (c) of section 5532 of such title with respect to membership on the commission.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Staff and Administrative Support</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The chairman of the commission may, without regard to civil service laws and regulations, appoint and terminate an executive director and up to three additional staff members as necessary to enable the commission to perform its duties. The chairman of the commission may fix the compensation of the executive director and other personnel without regard to the provisions of chapter 51, and subchapter III of chapter 53, of title 5, United States Code, relating to classification of positions and General Schedule pay rates, except that the rate of pay may not exceed the maximum rate of pay for grade GS–15 under the General Schedule.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Upon the request of the chairman of the commission, the head of any department or agency of the Federal Government may detail, without reimbursement, any personnel of the department or agency to the commission to assist in carrying out its duties. A detail of an employee shall be without interruption or loss of civil service status or privilege.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><content>The chairman of the commission may procure temporary and intermittent services under section 3109(b) of title 5, United States Code, at rates for individuals that do not exceed the daily equivalent of the annual rate of basic pay prescribed for level IV of the Executive Schedule under section 5315 of such title.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="4">(4) </num><content>The Secretary of Defense shall furnish to the commission such administrative and support services as may be requested by the chairman of the commission.</content></paragraph> </subsection> </section> <section> <num value="564">SEC. 564. </num><heading>TERMINATION OF COMMISSION.</heading> <content>The commission shall terminate 60 days after the date on which it submits the final report under section 562(e)(2).<page identifier="/us/stat/111/1756">111 STAT. 1756</page></content> </section> <section> <num value="565">SEC. 565. </num><heading>FUNDING.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">From Department of Defense Appropriations</inline>.—</heading><content>Upon the request of the chairman of the commission, the Secretary of Defense shall make available to the commission, out of funds appropriated for the Department of Defense, such amounts as the commission may require to carry out its duties.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Period of Availability</inline>.—</heading><content>Funds made available to the commission shall remain available, without fiscal year limitation, until the date on which the commission terminates.</content> </subsection> </section> <section> <num value="566">SEC. 566. </num><heading>SUBSEQUENT CONSIDERATION BY CONGRESS.</heading> <content>After receipt of each report of the commission under section 562(e), Congress shall consider the report and, based upon the results of the review (and such other matters as Congress considers appropriate), consider whether to require by law that the Secretaries of the military departments conduct basic training on a gender-segregated or gender-integrated basis.</content> </section> </subtitle> <subtitle> <num value="G">Subtitle G—</num><heading>Military Decorations and Awards</heading> <section> <num value="571">SEC. 571. </num><heading>PURPLE HEART TO BE AWARDED ONLY TO MEMBERS OF THE ARMED FORCES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Chapter 57 of title 10, United States Code, is amended by adding at the end the following new section: <quotedContent> <section> <num value="1131">“§ 1131. </num><heading>Purple Heart: limitation to members of the armed forces</heading> <content>“The decoration known as the Purple Heart (authorized to be awarded pursuant to Executive Order 11016) may only be awarded to a person who is a member of the armed forces at the time the person is killed or wounded under circumstances otherwise qualifying that person for award of the Purple Heart.”.</content> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of such chapter is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“1131.</designator> <label>Purple Heart: limitation to members of the armed forces.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1131">10 USC 1131 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>Section 1131 of title 10, United States Code, as added by subsection (a), shall apply with respect to persons who are killed or wounded after the end of the 180-day period beginning on the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="572">SEC. 572. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1130">10 USC 1130 note</ref>.</p></sidenote> <heading>ELIGIBILITY FOR ARMED FORCES EXPEDITIONARY MEDAL FOR PARTICIPATION IN OPERATION JOINT ENDEAVOR OR OPERATION JOINT GUARD.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Inclusion of Operations</inline>.—</heading><content>For the purpose of determining the eligibility of members and former members of the Armed Forces for the Armed Forces Expeditionary Medal, the Secretary of Defense shall designate participation in Operation Joint Endeavor or Operation Joint Guard in the Republic of Bosnia and Herzegovina, and in such other areas in the region as the Secretary considers appropriate, as service in an area that meets the general requirements for the award of that medal.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Individual Determination</inline>.—</heading><chapeau>The Secretary of the military department concerned shall determine whether individual members <page identifier="/us/stat/111/1757">111 STAT. 1757</page>or former members of the Armed Forces who participated in Operation Joint Endeavor or Operation Joint Guard meet the individual service requirements for award of the Armed Forces Expeditionary Medal as established in applicable regulations. A member or former member shall be considered to have participated in Operation Joint Endeavor or Operation Joint Guard if the member—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>was deployed in the Republic of Bosnia and Herzegovina, or in such other area in the region as the Secretary of Defense considers appropriate, in direct support of one or both of the operations;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>served on board a United States naval vessel operating in the Adriatic Sea in direct support of one or both of the operations; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>operated in airspace above the Republic of Bosnia and Herzegovina, or in such other area in the region as the Secretary of Defense considers appropriate, while the operations were in effect.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Operations Defined</inline>.—</heading><chapeau>For purposes of this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The term “Operation Joint Endeavor” means operations of the United States Armed Forces conducted in the Republic of Bosnia and Herzegovina during the period beginning on November 20, 1995, and ending on December 20, 1996, to assist in implementing the General Framework Agreement and Associated Annexes, initialed on November 21, 1995, in Dayton, Ohio.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The term “Operation Joint Guard” means operations of the United States Armed Forces conducted in the Republic of Bosnia and Herzegovina as a successor to Operation Joint Endeavor during the period beginning on December 20, 1996, and ending on such date as the Secretary of Defense may designate.</content></paragraph> </subsection> </section> <section> <num value="573">SEC. 573. </num><heading>WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN DECORATIONS TO SPECIFIED PERSONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Waiver of Time Limitation</inline>.—</heading><content>Any limitation established by law or policy for the time within which a recommendation for the award of a military decoration or award must be submitted shall not apply in the case of awards of decorations described in subsections (b), (c), and (d), the award of each such decoration having been determined by the Secretary of the military department concerned to be warranted in accordance with section 1130 of title 10, United States Code.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Silver Star Medal</inline>.—</heading><chapeau>Subsection (a) applies to the award of the Silver Star Medal as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>To Joseph M. Moll, Jr. of Milford, New Jersey, for service during World War II.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>To Philip Yolinsky of Hollywood, Florida, for service during the Korean Conflict.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>To Robert Norman of Reno, Nevada, for service during World War II.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Navy and Marine Corps Medal</inline>.—</heading><content>Subsection (a) applies to the award of the Navy and Marine Corps Medal to Gary A. Gruenwald of Damascus, Maryland, for service in Tunisia in October 1977.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Distinguished Flying Cross</inline>.—</heading><content>Subsection (a) applies to awards of the Distinguished Flying Cross for service during World War II or Korea (including multiple awards to the same individual) <page identifier="/us/stat/111/1758">111 STAT. 1758</page>in the case of each individual concerning whom the Secretary of the Navy (or an officer of the Navy acting on behalf of the Secretary) submitted to the Committee on National Security of the House of Representatives and the Committee on Armed Services of the Senate, before the date of the enactment of this Act, a notice as provided in section 1130(b) of title 10, United States Code, that the award of the Distinguished Flying Cross to that individual is warranted and that a waiver of time restrictions prescribed by law for recommendation for such award is recommended.</content> </subsection> </section> <section> <num value="574">SEC. 574. </num><heading>CLARIFICATION OF ELIGIBILITY OF MEMBERS OF READY RESERVE FOR AWARD OF SERVICE MEDAL FOR HEROISM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Soldier’s Medal</inline>.—</heading><chapeau>Section 3750(a) of title 10, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>(1)</quotedText>” after “(a)”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The authority in paragraph (1) includes authority to award the medal to a member of the Ready Reserve who was not in a duty status defined in section 101(d) of this title when the member distinguished himself by heroism.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Navy and Marine Corps Medal</inline>.—</heading><chapeau>Section 6246 of such title is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by designating the text of the section as subsection (a); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><content>The authority in subsection (a) includes authority to award the medal to a member of the Ready Reserve who was not in a duty status defined in section 101(d) of this title when the member distinguished himself by heroism.”.</content> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Airman’s Medal</inline>.—</heading><chapeau>Section 8750(a) of such title is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>(1)</quotedText>” after “(a)”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The authority in paragraph (1) includes authority to award the medal to a member of the Ready Reserve who was not in a duty status defined in section 101(d) of this title when the member distinguished himself by heroism.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> </section> <section> <num value="575">SEC. 575. </num><heading>ONE-YEAR EXTENSION OF PERIOD FOR RECEIPT OF RECOMMENDATIONS FOR DECORATIONS AND AWARDS FOR CERTAIN MILITARY INTELLIGENCE PERSONNEL.</heading> <content>Section 523(b)(1) of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104–106; 110 Stat. 311; 10 U.S.C. 1130 note) is amended by striking out “during the one-year period beginning on the date of the enactment of this Act” and inserting in lieu thereof “during the period beginning on February 10, 1996, and ending on February 9, 1998”.</content> </section> <section> <num value="576">SEC. 576. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1130">10 USC 1130 note</ref>.</p></sidenote> <heading>ELIGIBILITY OF CERTAIN WORLD WAR II MILITARY ORGANIZATIONS FOR AWARD OF UNIT DECORATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Authority</inline>.—</heading><content>A unit decoration may be awarded for any unit or other organization of the Armed Forces (such as the Military Intelligence Service of the Army) that (1) supported the planning or execution of combat operations during World War II primarily through unit personnel who were attached to other units of the Armed Forces or of other allied armed forces, and (2) is not otherwise eligible for award of the decoration by reason of not usually having been deployed as a unit in support of such operations.<page identifier="/us/stat/111/1759">111 STAT. 1759</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Time for Submission of Recommendation</inline>.—</heading><content>Any recommendation for award of a unit decoration under subsection (a) shall be submitted to the Secretary concerned (as defined in section 101(a)(9) of title 10, United States Code), or to such other official as the Secretary concerned may designate, not later than two years after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="577">SEC. 577. </num><heading>RETROACTIVITY OF MEDAL OF HONOR SPECIAL PENSION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Entitlement</inline>.—</heading><chapeau>In the case of Vernon J. Baker, Edward A. Carter, Junior, and Charles L. Thomas, who were awarded the Medal of Honor pursuant to section 561 of Public Law 104— 201 (110 Stat. 2529) and whose names have been entered and recorded on the Army, Navy, Air Force, and Coast Guard Medal of Honor Roll, the entitlement of those persons to the special pension provided under section 1562 of title 38, United States Code (and antecedent provisions of law), shall be effective as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>In the case of Vernon J. Baker, for months that begin after April 1945.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>In the case of Edward A. Carter, Junior, for months that begin after March 1945.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>In the case of Charles L. Thomas, for months that begin after December 1944.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Amount</inline>.—</heading><content>The amount of the special pension payable under subsection (a) for a month beginning before the date of the enactment of this Act shall be the amount of the special pension provided by law for that month for persons entered and recorded on the Army, Navy, Air Force, and Coast Guard Medal of Honor Roll (or an antecedent Medal of Honor Roll required by law).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Payment to Next of Kin</inline>.—</heading><content>In the case of a person referred to in subsection (a) who died before receiving full payment of the pension pursuant to this section, the Secretary of Veterans Affairs shall pay the total amount of the accrued pension, upon receipt of application for payment within one year after the date of the enactment of this Act, to the deceased person’s spouse or, if there is no surviving spouse, then to the deceased person’s children, per stirpes, in equal shares.</content> </subsection> </section> </subtitle> <subtitle> <num value="H">Subtitle H—</num><heading>Military Justice Matters</heading> <section> <num value="581">SEC. 581. </num><heading>ESTABLISHMENT OF SENTENCE OF CONFINEMENT FOR LIFE WITHOUT ELIGIBILITY FOR PAROLE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Establishment of Sentence</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Chapter 47 of title 10, United States Code (the Uniform Code of Military Justice), is amended by inserting after section 856 (article 56) the following new section (article): <quotedContent> <section> <num value="856a">“§ 856a. </num><heading>Art. 56a. Sentence of confinement for life without eligibility for parole</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><content>For any offense for which a sentence of confinement for life may be adjudged, a court-martial may adjudge a sentence of confinement for life without eligibility for parole.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><chapeau>An accused who is sentenced to confinement for life without eligibility for parole shall be confined for the remainder of the accused’s life unless—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><chapeau>the sentence is set aside or otherwise modified as a result of—<page identifier="/us/stat/111/1760">111 STAT. 1760</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>action taken by the convening authority, the Secretary concerned, or another person authorized to act under section 860 of this title (article 60); or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>any other action taken during post-trial procedure and review under any other provision of subchapter IX;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>the sentence is set aside or otherwise modified as a result of action taken by a Court of Criminal Appeals, the Court of Appeals for the Armed Forces, or the Supreme Court; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>the accused is pardoned.”.</content></paragraph> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of subchapter VIII of such chapter is amended by inserting after the item relating to section 856 (article 56) the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“856a. 56a.</designator> <label>Sentence of confinement for life without eligibility for parole.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s856a">10 USC 856a note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>Section 856a of title 10, United States Code (article 56a of the Uniform Code of Military Justice), as added by subsection (a), shall be applicable only with respect to an offense committed after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="582">SEC. 582. </num><heading>LIMITATION ON APPEAL OF DENIAL OF PAROLE FOR OFFENDERS SERVING LIFE SENTENCE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Exclusive Authority To Grant Parole on Appeal of Denial</inline>.—</heading><chapeau>Section 952 of title 10, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>(a)</quotedText>” before “The Secretary”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><content>In a case in which parole for an offender serving a sentence of confinement for life is denied, only the President or the Secretary concerned may grant the offender parole on appeal of that denial. The authority to grant parole on appeal in such a case may not be delegated ”.</content> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s952">10 USC 952 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>Subsection (b) of section 952 of title 10, United States Code (as added by subsection (a)), shall apply only with respect to any decision to deny parole made after the date of the enactment of this Act.</content> </subsection> </section> </subtitle> <subtitle> <num value="I">Subtitle I—</num><heading>Other Matters</heading> <section> <num value="591">SEC. 591. </num><heading>SEXUAL HARASSMENT INVESTIGATIONS AND REPORTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Investigations</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Part II of subtitle A of title 10, United States Code, is amended by inserting after chapter 79 the following new chapter: <quotedContent> <chapter> <num value="80">“CHAPTER 80—</num><heading>MISCELLANEOUS INVESTIGATION REQUIREMENTS AND OTHER DUTIES</heading> <toc> <referenceItem role="section"><designator>“Sec.</designator> <label /></referenceItem> <referenceItem role="section"><designator>“1561.</designator> <label>Complaints of sexual harassment: investigation by commanding officers.</label></referenceItem> </toc> <section> <num value="1561">“§ 1561. </num><heading>Complaints of sexual harassment: investigation by commanding officers</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Action on Complaints Alleging Sexual Harassment</inline>.—</heading><content>A commanding officer or officer in charge of a unit, vessel, facility, or area of the Army, Navy, Air Force, or Marine Corps who receives from a member of the command or a civilian employee under the supervision of the officer a complaint alleging sexual harassment by a member of the armed forces or a civilian employee of the <page identifier="/us/stat/111/1761">111 STAT. 1761</page>Department of Defense shall carry out an investigation of the matter in accordance with this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Commencement of Investigation</inline>.—</heading><chapeau>To the extent practicable, a commanding officer or officer in charge receiving such a complaint shall, within 72 hours after receipt of the complaint—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>forward the complaint or a detailed description of the allegation to the next superior officer in the chain of command who is authorized to convene a general court-martial;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>commence, or cause the commencement of, an investigation of the complaint; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>advise the complainant of the commencement of the investigation.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Duration of Investigation</inline>.—</heading><content>To the extent practicable, a commanding officer or officer in charge receiving such a complaint shall ensure that the investigation of the complaint is completed not later than 14 days after the date on which the investigation is commenced.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Report on Investigation</inline>.—</heading><chapeau>To the extent practicable, a commanding officer or officer in charge receiving such a complaint shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>submit a final report on the results of the investigation, including any action taken as a result of the investigation, to the next superior officer referred to in subsection (b)(1) within 20 days after the date on which the investigation is commenced; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>submit a report on the progress made in completing the investigation to the next superior officer referred to in subsection (b)(1) within 20 days after the date on which the investigation is commenced and every 14 days thereafter until the investigation is completed and, upon completion of the investigation, then submit a final report on the results of the investigation, including any action taken as a result of the investigation, to that next superior officer.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Sexual Harassment Defined</inline>.—</heading><chapeau>In this section, the term ‘sexual harassment’ means any of the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><chapeau>Conduct (constituting a form of sex discrimination) that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><chapeau>involves unwelcome sexual advances, requests for sexual favors, and deliberate or repeated offensive comments or gestures of a sexual nature when—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>submission to such conduct is made either explicitly or implicitly a term or condition of a person’s job, pay, or career;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>submission to or rejection of such conduct by a person is used as a basis for career or employment decisions affecting that person; or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><content>such conduct has the purpose or effect of unreasonably interfering with an individual’s work performance or creates an intimidating, hostile, or offensive working environment; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>is so severe or pervasive that a reasonable person would perceive, and the victim does perceive, the work environment as hostile or offensive.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>Any use or condonation, by any person in a supervisory or command position, of any form of sexual behavior to control, influence, or affect the career, pay, or job of a member of <page identifier="/us/stat/111/1762">111 STAT. 1762</page>the armed forces or a civilian employee of the Department of Defense.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>Any deliberate or repeated unwelcome verbal comment or gesture of a sexual nature in the workplace by any member of the armed forces or civilian employee of the Department of Defense.”</content></paragraph> </subsection> </section> </chapter> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The tables of chapters at the beginning of subtitle A, and at the beginning of part II of subtitle A, of such title are amended by inserting after the item relating to chapter 79 the following new item: <quotedContent> <referenceItem><designator leaderChar="." leaderAlign="right">“80. Miscellaneous Investigation Requirements and Other Duties</designator> <target>1561”.</target></referenceItem> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1561">10 USC 1561 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Reports</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Not later than January 1 of each of 1998 and 1999, each officer receiving a complaint forwarded in accordance with section 1561(b) of title 10, United States Code, as added by subsection (a), during the preceding year shall submit to the Secretary of the military department concerned a report on all such complaints and the investigations of such complaints (including the results of the investigations, in cases of investigations completed during such preceding year).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>Not later than March 1 of each of 1998 and 1999, each Secretary receiving a report under paragraph (1) for a year shall submit to the Secretary of Defense a report on all such reports so received.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">(B) </num><content>Not later than April 1 following receipt of a report for a year under subparagraph (A), the Secretary of Defense shall transmit to Congress all such reports received for the year under subparagraph (A) together with the Secretary’s assessment of each such report.</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="592">SEC. 592. </num><heading>SENSE OF THE SENATE REGARDING STUDY OF MATTERS RELATING TO GENDER EQUITY IN THE ARMED FORCES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>The Senate makes the following findings:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>In the all-volunteer force, women play an integral role in the Armed Forces.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>With increasing numbers of women in the Armed Forces, questions arise concerning inequalities, and perceived inequalities, between the treatment of men and women in the Armed Forces.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Sense of the Senate</inline>.—</heading><chapeau>It is the sense of the Senate that the Comptroller General should—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>conduct a study on any inequality, or perception of inequality, in the treatment of men and women in the Armed Forces that arises out of the statutes and regulations governing the Armed Forces; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>submit to the Senate a report on the study not later than one year after the date of the enactment of this Act.</content></paragraph> </subsection> </section> <section> <num value="593">SEC. 593. </num><heading>AUTHORITY FOR PERSONNEL TO PARTICIPATE IN MANAGEMENT OF CERTAIN NON-FEDERAL ENTITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Military Personnel</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Chapter 53 of title 10, United States Code, is amended by inserting after section 1032 the following new section: <quotedContent> <section> <num value="1033">“§ 1033. </num><heading>Participation in management of specified non-Federal entities: authorized activities</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Authorization</inline>.—</heading><content>The Secretary concerned may authorize a member of the armed forces under the Secretary’s jurisdiction <page identifier="/us/stat/111/1763">111 STAT. 1763</page>to serve without compensation as a director, officer, or trustee, or to otherwise participate, in the management of an entity designated under subsection (b). Any such authorization shall be made on a case-by-case basis, for a particular member to participate in a specific capacity with a specific designated entity. Such authorization may be made only for the purpose of providing oversight and advice to, and coordination with, the designated entity, and participation of the member in the activities of the designated entity may not extend to participation in the day-to-day operations of the entity.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Designated Entities</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of Defense, and the Secretary of Transportation in the case of the Coast Guard when it is not operating as a service in the Navy, shall designate those entities for which authorization under subsection (a) may be provided. The list of entities so designated may not be revised more frequently than semiannually. In making such designations, the Secretary shall designate each military welfare society and may designate any other entity described in paragraph (3). No other entities may be designated.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><chapeau>In this section, the term ‘military welfare society’ means the following:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>Army Emergency Relief.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>Air Force Aid Society, Inc.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">“(C) </num><content>Navy-Marine Corps Relief Society.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="D">“(D) </num><content>Coast Guard Mutual Assistance.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><chapeau>An entity described in this paragraph is an entity that is not operated for profit and is any of the following:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>An entity that regulates and supports the athletic programs of the service academies (including athletic conferences).</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>An entity that regulates international athletic competitions.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">“(C) </num><content>An entity that accredits service academies and other schools of the armed forces (including regional accrediting agencies).</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="D">“(D) </num><content>An entity that (i) regulates the performance, standards, and policies of military health care (including health care associations and professional societies), and (ii) has designated the position or capacity in that entity in which a member of the armed forces may serve if authorized under subsection (a).</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Publication of Designated Entities and of Authorized Persons</inline>.—</heading><content>A designation of an entity under subsection (b), and<sidenote><p class="indent0 firstIndent0 fontsize8">Federal Register, publication.</p></sidenote> an authorization under subsection (a) of a member of the armed forces to participate in the management of such an entity, shall be published in the Federal Register.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Regulations</inline>.—</heading><content>The Secretary of Defense, and the Secretary of Transportation in the case of the Coast Guard when it is not operating as a service in the Navy, shall prescribe regulations to carry out this section.”.</content> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 1032 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“1033.</designator> <label>Participation in management of specified non-Federal entities: authorized activities.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Civilian Personnel</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Chapter 81 of such title is amended by inserting after section 1588 the following new section:<page identifier="/us/stat/111/1764">111 STAT. 1764</page> <quotedContent> <section> <num value="1589">“§ 1589. </num><heading>Participation in management of specified non-Federal entities: authorized activities</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Authorization</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary concerned may authorize an employee described in paragraph (2) to serve without compensation as a director, officer, or trustee, or to otherwise participate, in the management of an entity designated under subsection (b). Any such authorization shall be made on a case-by-case basis, for a particular employee to participate in a specific capacity with a specific designated entity. Such authorization may be made only for the purpose of providing oversight and advice to, and coordination with, the designated entity, and participation of the employee in the activities of the designated entity may not extend to participation in the day-to-day operations of the entity.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>Paragraph (1) applies to any employee of the Department of Defense or, in the case of the Coast Guard when not operating as a service in the Navy, of the Department of Transportation. For purposes of this section, the term ‘employee’ includes a civilian officer.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Designated Entities</inline>.—</heading><content>The Secretary of Defense, and the Secretary of Transportation in the case of the Coast Guard when it is not operating as a service in the Navy, shall designate those entities for which authorization under subsection (a) may be provided. The list of entities so designated may not be revised more frequently than semiannually. In making such designations, the Secretary shall designate each military welfare society named in paragraph (2) of section 1033(b) of this title and may designate any other entity described in paragraph (3) of such section. No other entities may be designated.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Publication of Designated Entities and of Authorized Persons</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8">Federal Register, publication.</p></sidenote><content>A designation of an entity under subsection (b), and an authorization under subsection (a) of an employee to participate in the management of such an entity, shall be published in the Federal Register.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Civilians Outside the Military Departments</inline>.—</heading><content>In this section, the term ‘Secretary concerned’ includes the Secretary of Defense with respect to employees of the Department of Defense who are not employees of a military department.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Regulations</inline>.—</heading><content>The Secretary of Defense, and the Secretary of Transportation in the case of the Coast Guard when it is not operating as a service in the Navy, shall prescribe regulations to carry out this section.”.</content> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 1588 the following new item: <quotedContent> <referenceItem role="section"><designator>“1589.</designator> <label>Participation in management of specified non-Federal entities: authorized activities.”.</label></referenceItem> </quotedContent> </content></paragraph> </subsection> </section> <section> <num value="594">SEC. 594. </num><heading>TREATMENT OF PARTICIPATION OF MEMBERS IN DEPARTMENT OF DEFENSE CIVIL MILITARY PROGRAMS.</heading> <chapeau>Section 2012 of title 10, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by redesignating subsections (g) and (h) as subsections (h) and (i), respectively; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting after subsection (f) the following new subsection: <quotedContent> <num value="g">“(g) </num><heading><inline class="smallCaps">Treatment of Member’s Participation in Provision of Support or Services</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of a military department may not require or request a member of the armed forces to submit <page identifier="/us/stat/111/1765">111 STAT. 1765</page>for consideration by a selection board (including a promotion board, command selection board, or any other kind of selection board) evidence of the member’s participation in the provision of support and services to non-Department of Defense organizations and activities under this section or the member’s involvement in, or support of, other community relations and public affairs activities of the armed forces.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>Paragraph (1) does not prevent a selection board from considering material submitted voluntarily by a member of the armed forces which provides evidence of the participation of that member or another member in activities described in that paragraph”.</content></paragraph> </quotedContent> </content></paragraph> </section> <section> <num value="595">SEC. 595. </num><heading>COMPTROLLER GENERAL STUDY OF DEPARTMENT OF DEFENSE CIVIL MILITARY PROGRAMS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Study Required</inline>.—</heading><chapeau>The Comptroller General shall conduct a study to evaluate the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The nature, extent, and cost to the Department of Defense of the support and services being provided by units and members of the Armed Forces to non-Department of Defense organizations and activities under the authority of section 2012 of title 10, United States Code.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The degree to which the Armed Forces are in compliance with the requirements of such section in the provision of such support and services, especially the requirements that the assistance meet specific requirements relative to military training and that the assistance provided be incidental to military training.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The degree to which the regulations and procedures for implementing such section, as required by subsection (f) of such section, are consistent with the requirements of such section.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The effectiveness of the Secretary of Defense and the Secretaries of the military departments in conducting oversight of the implementation of such section, and the provision of such support and services under such section, to ensure compliance with the requirements of such section.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Submission of Report</inline>.—</heading><content>Not later than March 31, 1998, the Comptroller General shall submit to Congress a report containing the results of the study required by subsection (a).</content> </subsection> </section> <section> <num value="596">SEC. 596. </num><heading>ESTABLISHMENT OF PUBLIC AFFAIRS SPECIALTY IN THE ARMY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">New Specialty</inline>.—</heading><content>Chapter 307 of title 10, United States Code, is amended by adding at the end the following new section: <quotedContent> <section> <num value="3083">“§ 3083. </num><heading>Public Affairs Specialty</heading> <chapeau>“There is a career field in the Army known as the Public Affairs Specialty. Members of the Army with the Public Affairs Specialty are—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>the Chief of Public Affairs;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>commissioned officers of the Army in the grade of major or above who are selected and specifically educated, trained, and experienced to perform as professional public affairs officers for the remainder of their careers; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>other members of the Army assigned to public affairs positions by the Secretary of the Army.”.<page identifier="/us/stat/111/1766">111 STAT. 1766</page></content></paragraph> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections at the beginning of such chapter is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“3083.</designator> <label>Public Affairs Specialty.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="597">SEC. 597. </num><heading>GRADE OF DEFENSE ATTACHE IN FRANCE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>Chapter 41 of title 10, United States Code, is amended by inserting after section 713 the following new section: <quotedContent> <section> <num value="714">“§ 714. </num><heading>Defense attache in France: required grade</heading> <content>“An officer may not be selected for assignment to the position of defense attache to the United States embassy in France unless the officer holds (or is on a promotion list for promotion to) the grade of brigadier general or, in the case of the Navy, rear admiral (lower half).”.</content> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 713 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“714.</designator> <label>Defense attache in France: required grade.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="598">SEC. 598. </num><heading>REPORT ON CREW REQUIREMENTS OF WC–130J AIRCRAFT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Study</inline>.—</heading><content>The Secretary of the Air Force shall conduct a study of the crew requirements for WC–130J aircraft to be procured for assignment to the aerial weather reconnaissance mission involving the eyewall penetration of tropical cyclones. The study shall include study of the anticipated operation of WC–130J aircraft in weather reconnaissance missions configured to carry five crewmembers, including a navigator. In carrying out the study, the Secretary shall provide for participation by members of the Armed Forces currently assigned to units engaged in weather reconnaissance operations.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Report</inline>.—</heading><content>The Secretary shall submit to Congress a report on the results of the study. The Secretary shall include in the report the views of members of the Armed Forces currently assigned to units engaged in weather reconnaissance operations who participated in the study. If as a result of the study the Secretary determines that there are crewmembers assigned to weather reconnaissance duties in excess of the crew requirements that will be applicable for WC–130J aircraft, the Secretary shall include in the report a plan for retraining or reassignment of those crewmembers. The study shall be submitted not later than September 30, 1998.</content> </subsection> </section> <section> <num value="599">SEC. 599. </num><heading>IMPROVEMENT OF MISSING PERSONS AUTHORITIES APPLICABLE TO DEPARTMENT OF DEFENSE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Applicability to Department of Defense Civilian Employees and Contractor Employees</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>Section 1501 of title 10, United States Code, is amended—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>by striking out subsection (c) and inserting in lieu thereof the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Covered Persons</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>Section 1502 of this title applies in the case of any member of the armed forces on active duty—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>who becomes involuntarily absent as a result of a hostile action or under circumstances suggesting that the involuntary absence is a result of a hostile action; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>whose status is undetermined or who is unaccounted for.<page identifier="/us/stat/111/1767">111 STAT. 1767</page></content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><chapeau>Section 1502 of this title applies in the case of any other person who is a citizen of the United States and a civilian officer or employee of the Department of Defense or (subject to paragraph (3)) an employee of a contractor of the Department of Defense—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>who serves in direct support of, or accompanies, the armed forces in the field under orders and becomes involuntarily absent as a result of a hostile action or under circumstances suggesting that the involuntary absence is a result of a hostile action; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>whose status is undetermined or who is unaccounted for.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>The Secretary of Defense shall determine, with regard to a pending or ongoing military operation, the specific employees, or groups of employees, of contractors of the Department of Defense to be considered to be covered by this subsection.”; and</content></paragraph> </subsection> </quotedContent> </content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f) </num><heading><inline class="smallCaps">Secretary Concerned</inline>.—</heading><content>In this chapter, the term ‘Secretary concerned’ includes, in the case of a civilian officer or employee of the Department of Defense or an employee of a contractor of the Department of Defense, the Secretary of the military department or head of the element of the Department of Defense employing the officer or employee or contracting with the contractor, as the case may be.”.</content> </subsection> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>Section 1503(c) of such title is amended—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>in paragraph (1), by striking out “one military officer” and inserting in lieu thereof “one individual described in paragraph (2)”;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><content>by inserting after paragraph (1) the following new paragraph (2): <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><chapeau>An individual referred to in paragraph (1) is the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>A military officer, in the case of an inquiry with respect to a member of the armed forces.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>A civilian, in the case of an inquiry with respect to a civilian employee of the Department of Defense or of a contractor of the Department of Defense.”.</content></subparagraph> </paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><chapeau>Section 1504(d) of such title is amended—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>in paragraph (1), by striking out “who are” and all that follows in that paragraph and inserting in lieu thereof “as follows: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>In the case of a board that will inquire into the whereabouts and status of one or more members of the armed forces (and no civilians described in subparagraph (B)), the board shall be composed of officers having the grade of major or lieutenant commander or above.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><chapeau>In the case of a board that will inquire into the whereabouts and status of one or more civilian employees of the Department of Defense or contractors of the Department of Defense (and no members of the armed forces), the board shall be composed of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>not less than three employees of the Department of Defense whose rate of annual pay is equal to or greater than the rate of annual pay payable for grade GS–13 of the General Schedule under section 5332 of title 5; and<page identifier="/us/stat/111/1768">111 STAT. 1768</page></content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>such members of the armed forces as the Secretary considers advisable.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><chapeau>In the case of a board that will inquire into the whereabouts and status of both one or more members of the armed forces and one or more civilians described in subparagraph (B)—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>the board shall include at least one officer described in subparagraph (A) and at least one employee of the Department of Defense described in subparagraph (B)(i); and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>the ratio of such officers to such employees on the board shall be roughly proportional to the ratio of the number of members of the armed forces who are subjects of the board’s inquiry to the number of civilians who are subjects of the board’s inquiry.”; and</content></clause> </subparagraph> </quotedContent> </content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>in paragraph (4), by striking out “section 1503(c)(3)” and inserting in lieu thereof “section 1503(c)(4)”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Paragraph (1) of section 1513 of such title is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><chapeau>The term ‘missing person’ means—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>a member of the armed forces on active duty who is in a missing status; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>a civilian employee of the Department of Defense or an employee of a contractor of the Department of Defense who serves in direct support of, or accompanies, the armed forces in the field under orders and who is in a missing status.</content></subparagraph> <continuation class="indent0 fontsize10">Such term includes an unaccounted for person described in section 1509(b) of this title, under the circumstances specified in the last sentence of section 1509(a) of this title.”.</continuation> </paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Transmission to Theater Component Commander of Advisory Copy of Missing Person Report</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>Section 1502 of such title is amended—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>by redesignating subsection (b) as subsection (c); and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>by inserting after subsection (a) the following new subsection (b): <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Transmission of Advisory Copy to Theater Component Commander</inline>.—</heading><content>When transmitting a report under subsection (a)(2) recommending that a person be placed in a missing status, the commander transmitting that report shall transmit an advisory copy of the report to the theater component commander with jurisdiction over the missing person.”.</content> </subsection> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Section 1513 of such title is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="8">“(8) </num><content>The term Theater component commander’ means, with respect to any of the combatant commands, an officer of any of the armed forces who (A) is commander of all forces of that armed force assigned to that combatant command, and (B) is directly subordinate to the commander of the combatant command.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Information To Accompany Recommendation of Status of Death</inline>.—</heading><content>Section 1507(b) of such title is amended by adding at the end the following new paragraphs: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>A description of the location of the body, if recovered.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>If the body has been recovered and is not identifiable through visual means, a certification by a forensic pathologist <page identifier="/us/stat/111/1769">111 STAT. 1769</page>that the body recovered is that of the missing person. In determining whether to make such a certification, the forensic pathologist shall consider, as determined necessary by the Secretary of the military department concerned, additional evidence and information provided by appropriate specialists in forensic medicine or other appropriate medical sciences.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Missing Person’s Counsel</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Sections 1503(f)(1) and 1504(f)(1) of such title are amended by adding at the end the following: “<quotedText>The identity of counsel appointed under this paragraph for a missing person shall be made known to the missing person’s primary next of kin and any other previously designated person of the person.</quotedText>”.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Section 1503(f)(4) of such title is amended by adding at the end the following: “<quotedText>The primary next of kin of a missing person and any other previously designated person of the missing person shall have the right to submit information to the missing person’s counsel relative to the disappearance or status of the missing person.</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Scope of Preenactment Review</inline>.—</heading><paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Section 1509 of such title is amended by striking out subsection (a) and inserting in lieu thereof the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Review of Status</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>If new information (as defined in paragraph (2)) is found or received that may be related to one or more unaccounted for persons described in subsection (b) (whether or not such information specifically relates (or may specifically relate) to any particular such unaccounted for person), that information shall be provided to the Secretary of Defense. Upon receipt of such information, the Secretary shall ensure that the information is treated under paragraphs (2) and (3) of section 1505(c) of this title and under section 1505(d) of this title in the same manner as information received under paragraph (1) of section 1505(c) of this title. For purposes of the applicability of other provisions of this chapter in such a case, each such unaccounted for person to whom the new information may be related shall be considered to be a missing person.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><chapeau>For purposes of this subsection, new information is information that is credible and that—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>is found or received after the date of the enactment of the National Defense Authorization Act for Fiscal Year 1998 by a United States intelligence agency, by a Department of Defense agency, or by a person specified in section 1504(g) of this title; or</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>is identified after the date of the enactment of the National Defense Authorization Act for Fiscal Year 1998 in records of the United States as information that could be relevant to the case of one or more unaccounted for persons described in subsection (b).”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Such section is further amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Establishment of Personnel Files for Korean Conflict Cases</inline>.—</heading><content>The Secretary of Defense shall ensure that a personnel file is established for each unaccounted for person who is described in subsection (b)(1) if the Secretary possesses information relevant to that person’s status. In the case of a person described in subsection (b)(1) for whom a personnel file does not exist, the Secretary shall create a personnel file for such person upon receipt of new information as provided in subsection (a). Each such file <page identifier="/us/stat/111/1770">111 STAT. 1770</page>shall be handled in accordance with, and subject to the provisions of, section 1506 of this title in the same manner as applies to the file of a missing person.”.</content> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Withholding of Classified Information</inline>.—</heading><chapeau>Section 1506(b) of such title is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>(1)</quotedText>” before ‘The Secretary”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>If classified information withheld under this subsection refers to one or more unnamed missing persons, the Secretary shall ensure that notice of that withheld information, and notice of the date of the most recent review of the classification of that withheld information, is made reasonably accessible to the primary next of kin, members of the immediate family, and the previously designated person.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num><heading><inline class="smallCaps">Withholding of Privileged Information</inline>.—</heading><chapeau>Section 1506(d) of such title is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>in paragraph (2)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by inserting “<quotedText>or about unnamed missing persons</quotedText>” in the first sentence after “the debriefing report”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking out “the missing person” in the second sentence and inserting in lieu thereof “each missing person named in the debriefing report”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>by adding at the end the following new sentence: “Any information contained in the extract of the debriefing report that pertains to unnamed missing persons shall be made reasonably accessible to the primary next of kin, members of the immediate family, and the previously designated person.”; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in paragraph (3), by inserting “<quotedText>, or part of a debriefing report,</quotedText>” after “a debriefing report”.</content></paragraph> </subsection> </section> </subtitle> <num value="VI">TITLE VI—</num><heading>COMPENSATION AND OTHER PERSONNEL BENEFITS</heading> <toc> <referenceItem role="subtitle"><designator>Subtitle A—</designator><label>Pay and Allowances</label></referenceItem> <referenceItem role="section"><designator>Sec. 601.</designator> <label>Increase in basic pay for fiscal year 1998.</label></referenceItem> <referenceItem role="section"><designator>Sec. 602.</designator> <label>Reform of basic allowance for subsistence.</label></referenceItem> <referenceItem role="section"><designator>Sec. 603.</designator> <label>Consolidation of basic allowance for quarters, variable housing allowance, and overseas housing allowances.</label></referenceItem> <referenceItem role="section"><designator>Sec. 604.</designator> <label>Revision of authority to adjust compensation necessitated by reform of subsistence and housing allowances.</label></referenceItem> <referenceItem role="section"><designator>Sec. 605.</designator> <label>Protection of total compensation of members while performing certain duty.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle B—</designator><label>Bonuses and Special and Incentive Pays</label></referenceItem> <referenceItem role="section"><designator>Sec. 611.</designator> <label>One-year extension of certain bonuses and special pay authorities for reserve forces.</label></referenceItem> <referenceItem role="section"><designator>Sec. 612.</designator> <label>One-year extension of certain bonuses and special pay authorities for nurse officer candidates, registered nurses, and nurse anesthetists.</label></referenceItem> <referenceItem role="section"><designator>Sec. 613.</designator> <label>One-year extension of authorities relating to payment of other bonuses and special pays.</label></referenceItem> <referenceItem role="section"><designator>Sec. 614.</designator> <label>Increase in minimum monthly rate of hazardous duty incentive pay for certain members.</label></referenceItem> <referenceItem role="section"><designator>Sec. 615.</designator> <label>Increase in aviation career incentive pay.</label></referenceItem> <referenceItem role="section"><designator>Sec. 616.</designator> <label>Modification of aviation officer retention bonus.</label></referenceItem> <referenceItem role="section"><designator>Sec. 617.</designator> <label>Availability of multiyear retention bonus for dental officers.</label></referenceItem> <referenceItem role="section"><designator>Sec. 618.</designator> <label>Increase in variable and additional special pays for certain dental officers.</label></referenceItem> <referenceItem role="section"><designator>Sec. 619.</designator> <label>Availability of special pay for duty at designated hardship duty locations.<page identifier="/us/stat/111/1771">111 STAT. 1771</page></label></referenceItem> <referenceItem role="section"><designator>Sec. 620.</designator> <label>Definition of sea duty for purposes of career sea pay.</label></referenceItem> <referenceItem role="section"><designator>Sec. 621.</designator> <label>Modification of Selected Reserve reenlistment bonus.</label></referenceItem> <referenceItem role="section"><designator>Sec. 622.</designator> <label>Modification of Selected Reserve enlistment bonus for former enlisted members.</label></referenceItem> <referenceItem role="section"><designator>Sec. 623.</designator> <label>Expansion of reserve affiliation bonus to include Coast Guard Reserve.</label></referenceItem> <referenceItem role="section"><designator>Sec. 624.</designator> <label>Increase in special pay and bonuses for nuclear-qualified officers.</label></referenceItem> <referenceItem role="section"><designator>Sec. 625.</designator> <label>Provision of bonuses in lieu of special pay for enlisted members extending tours of duty at designated locations overseas.</label></referenceItem> <referenceItem role="section"><designator>Sec. 626.</designator> <label>Increase in amount of family separation allowance.</label></referenceItem> <referenceItem role="section"><designator>Sec. 627.</designator> <label>Deadline for payment of Ready Reserve muster duty allowance.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle C—</designator><label>Travel and Transportation Allowances</label></referenceItem> <referenceItem role="section"><designator>Sec. 631.</designator> <label>Travel and transportation allowances for dependents before approval of member’s court-martial sentence.</label></referenceItem> <referenceItem role="section"><designator>Sec. 632.</designator> <label>Dislocation allowance.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle D—</designator><label>Retired Pay, Survivor Benefits, and Related Matters</label></referenceItem> <referenceItem role="section"><designator>Sec. 641.</designator> <label>One-year opportunity to discontinue participation in Survivor Benefit Plan.</label></referenceItem> <referenceItem role="section"><designator>Sec. 642.</designator> <label>Time in which change in survivor benefit coverage from former spouse to spouse may be made.</label></referenceItem> <referenceItem role="section"><designator>Sec. 643.</designator> <label>Review of Federal former spouse protection laws.</label></referenceItem> <referenceItem role="section"><designator>Sec. 644.</designator> <label>Annuities for certain military surviving spouses.</label></referenceItem> <referenceItem role="section"><designator>Sec. 645.</designator> <label>Administration of benefits for so-called minimum income widows.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle E—</designator><label>Other Matters</label></referenceItem> <referenceItem role="section"><designator>Sec. 651.</designator> <label>Loan repayment program for commissioned officers in certain health professions.</label></referenceItem> <referenceItem role="section"><designator>Sec. 652.</designator> <label>Conformance of NOAA commissioned officers separation pay to separation pay for members of other uniformed services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 653.</designator> <label>Eligibility of Public Health Service officers and NOAA commissioned corps officers for reimbursement of adoption expenses.</label></referenceItem> <referenceItem role="section"><designator>Sec. 654.</designator> <label>Payment of back quarters and subsistence allowances to World War II veterans who served as guerrilla fighters in the Philippines.</label></referenceItem> <referenceItem role="section"><designator>Sec. 655.</designator> <label>Subsistence of members of the Armed Forces above the poverty level.</label></referenceItem> </toc> <subtitle> <num value="A">Subtitle A—</num><heading>Pay and Allowances</heading> <section> <num value="601">SEC. 601. </num><heading>INCREASE IN BASIC PAY FOR FISCAL YEAR 1998.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t37/s1009">37 USC 1009</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Waiver of Section 1009 Adjustment</inline>.—</heading><content>The adjustment, to become effective during fiscal year 1998, required by section 1009 of title 37, United States Code (as amended by section 604), in the rate of monthly basic pay authorized members of the uniformed services by section 203(a) of such title shall not be made.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Increase in Basic Pay</inline>.—</heading><content>Effective on January 1, 1998,<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> the rates of basic pay of members of the uniformed services are increased by 2.8 percent.</content> </subsection> </section> <section> <num value="602">SEC. 602. </num><heading>REFORM OF BASIC ALLOWANCE FOR SUBSISTENCE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Entitlement to Allowance</inline>.—</heading><content>Section 402 of title 37, United States Code, is amended to read as follows: <quotedContent> <num value="402">“§ 402. </num><heading>Basic allowance for subsistence</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Entitlement to Allowance</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Except as provided in paragraph (2) or otherwise provided by law, each member of a uniformed service who is entitled to basic pay is entitled to a basic allowance for subsistence as set forth in this section.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>An enlisted member is not entitled to the basic allowance for subsistence during basic training.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Rates of Allowance Based on Food Costs</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>The monthly rate of basic allowance for subsistence to be in effect for an enlisted member for a year (beginning on January 1 of that year) shall be the amount that is halfway between the following <page identifier="/us/stat/111/1772">111 STAT. 1772</page>amounts, which are determined by the Secretary of Agriculture as of October 1 of the preceding year:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>The amount equal to the monthly cost of a moderate-cost food plan for a male in the United States who is between 20 and 50 years of age.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>The amount equal to the monthly cost of a liberal food plan for a male in the United States who is between 20 and 50 years of age.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The monthly rate of basic allowance for subsistence to be in effect for an officer for a year (beginning on January 1 of that year) shall be the amount equal to the monthly rate of basic allowance for subsistence in effect for officers for the preceding year, increased by the same percentage by which the rate of basic allowance for subsistence for enlisted members for the preceding year is increased effective on such January 1.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Advance Payment</inline>.—</heading><content>The allowance to an enlisted member may be paid in advance for a period of not more than three months.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Special Rule for Members Authorized to Mess Separately</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>In areas prescribed by the Secretary of Defense, and the Secretary of Transportation with respect to the Coast Guard when it is not operating as a service in the Navy, an enlisted member described in paragraph (2) is entitled to not more than the pro rata allowance established under subsection (b)(1) for each meal the member buys from a source other than a messing facility of the United States.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>An enlisted member referred to in paragraph (1) is a member who is granted permission to mess separately and whose duties require the member to buy at least one meal from a source other than a messing facility of the United States.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Policies on Use of Dining and Messing Facilities</inline>.—</heading><content>The Secretary of Defense, in consultation with the Secretaries concerned, shall prescribe policies regarding use of dining and field messing facilities of the uniformed services.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f) </num><heading><inline class="smallCaps">Regulations</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of Defense shall prescribe regulations for the administration of this section. Before prescribing the regulations, the Secretary shall consult with each Secretary concerned.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The regulations shall include the specific rates of basic allowance for subsistence required by subsection (b).”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>Section 404 of title 37, United States Code, is amended—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>by striking out subsection (g); and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>by redesignating subsections (h), (i), (j), and (k) as subsections (g), (h), (i), and (j), respectively.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Section 6081(a) of title 10, United States Code, is amended by striking out “Except” and all that follows through “subsistence, each” and inserting in lieu thereof “Each”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t37/s402">37 USC 402 note</ref>.</p></sidenote><heading><inline class="smallCaps">Transitional Authority To Provide Basic Allowance for Subsistence</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Transitional authority</inline>.—</heading><chapeau>Notwithstanding section 402 of title 37, United States Code, as amended by subsection (a), during the period beginning on January 1, 1998, and ending on the date determined under paragraph (2)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the basic allowance for subsistence shall not be paid under such section 402;<page identifier="/us/stat/111/1773">111 STAT. 1773</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>a member of the uniformed services is entitled to the basic allowance for subsistence only as provided in subsection (d);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>an enlisted member of the uniformed services may be paid a partial basic allowance for subsistence as provided in subsection (e); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>the rates of the basic allowance for subsistence are those rates determined under subsection (f).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Termination of transitional authority</inline>.—</heading><content>The transitional authority provided under paragraph (1) shall terminate on the first day of the month immediately following the first month for which the monthly equivalent of the rate of basic allowance for subsistence payable to enlisted members of the uniformed services (when permission to mess separately is granted), as determined under subsection (f)(2), is equal to or is exceeded by the amount that, except for paragraph (1)(A), would otherwise be the monthly rate of basic allowance for subsistence for enlisted members under section 402(b)(1) of title 37, United States Code, as amended by subsection (a).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Transitional Entitlement to Allowance</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t37/s402">37 USC 402 note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Enlisted members</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><heading><inline class="smallCaps">Types of entitlement</inline>.—</heading><chapeau>An enlisted member is entitled to the basic allowance for subsistence, on a daily basis, of under one or more of the following circumstances:</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>When rations in kind are not available.</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>When permission to mess separately is granted.</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii) </num><content>When assigned to duty under emergency conditions where no messing facilities of the United States are available.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><heading><inline class="smallCaps">Other entitlement circumstances</inline>.—</heading><chapeau>An enlisted member is entitled to the allowance while on an authorized leave of absence, while confined in a hospital, or while performing travel under orders away from the member’s designated post of duty other than field duty or sea duty (as defined in regulations prescribed by the Secretary of Defense). For purposes of the preceding sentence, a member shall not be considered to be performing travel under orders away from his designated post of duty if such member—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>is an enlisted member serving the member’s first tour of active duty;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>has not actually reported to a permanent duty station pursuant to orders directing such assignment; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii) </num><content>is not actually traveling between stations pursuant to orders directing a change of station.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><heading><inline class="smallCaps">Advance payment</inline>.—</heading><content>The allowance to an enlisted member, when authorized, may be paid in advance for a period of not more than three months.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Officers</inline>.—</heading><content>An officer of a uniformed service who is entitled to basic pay is, at all times, entitled to the basic allowances for subsistence. An aviation cadet of the Navy, Air Force, Marine Corps, or Coast Guard is entitled to the same basic allowance for subsistence as is provided for an officer of the Navy, Air Force, Marine Corps, or Coast Guard, respectively.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Transitional Authority for Partial Allowance</inline>.—<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t37/s402">37 USC 402 note</ref>.</p></sidenote><page identifier="/us/stat/111/1774">111 STAT. 1774</page></heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Enlisted members furnished subsistence in kind</inline>.—</heading><chapeau>The Secretary of Defense may provide in regulations for an enlisted member of a uniformed service to be paid a partial basic allowance for subsistence when—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>rations in kind are available to the member;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the member is not granted permission to mess separately; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>the member is assigned to duty under emergency conditions where messing facilities of the United States are available.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Monthly payment</inline>.—</heading><content>Any partial basic allowance for subsistence authorized under paragraph (1) shall be calculated on a daily basis and paid on a monthly basis.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t37/s402">37 USC 402 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Transitional Rates</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Allowance for officers</inline>.—</heading><content>The monthly rate of basic allowance for subsistence for a year (beginning on January 1 of that year) that is payable to officers of the uniformed services shall be the amount that is equal to 101 percent of the rate of basic allowance for subsistence that was payable to officers of the uniformed services for the preceding year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Allowance for enlisted member with permission to mess separately</inline>.—</heading><content>The monthly rate of basic allowance for subsistence for a year (beginning on January 1 of that year) that is payable to an enlisted member of the uniformed services entitled to the allowance under subsection (d)(1) shall be the amount that is equal to 101 percent of the rate of basic allowance for subsistence that was in effect for similarly situated enlisted members of the uniformed services for the preceding year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Partial allowance for other enlisted members</inline>.—</heading><chapeau>The monthly rate of any partial basic allowance for subsistence for a year (beginning on January 1 of that year) payable to an enlisted member of the uniformed services eligible for the allowance under the regulations prescribed under subsection (e)(1) shall be the amount equal to the lesser of the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><chapeau>The sum of—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>the partial basic allowance for subsistence in effect for the preceding year; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><chapeau>the amount equal to the difference, if any, between—</chapeau> <subclause class="indent4 fontsize10"><num value="I">(I) </num><content>the monthly equivalent of the rate of basic allowance for subsistence that was in effect for the preceding year for members of the uniformed services above grade E–1 (when permission to mess separately is granted), increased by the same percentage by which the rates of basic pay for members of the uniformed services is increased for the current year; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">(II) </num><content>the amount equal to 101 percent of the monthly equivalent of the rate of basic allowance for subsistence that was in effect for the previous year for members of the uniformed services above grade E–1 (when permission to mess separately is granted),</content></subclause> <continuation class="indent0 fontsize10">with the amount so determined under this clause multiplied by the number of members estimated to be entitled to receive basic allowance for subsistence <page identifier="/us/stat/111/1775">111 STAT. 1775</page>under subsection (d) for the current year and then divided by the number of members estimated to be eligible for the partial allowance under the regulations prescribed under subsection (e)(1) for that year.</continuation> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><chapeau>The amount equal to the difference between—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>the amount that, except for subsection (c)(1)(A), would otherwise be the monthly rate of basic allowance for subsistence for enlisted members under section 402(b)(1) of title 37, United States Code; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>the amount equal to the monthly equivalent of the value of a daily ration, as determined by the Under Secretary of Defense (Comptroller) as of October 1 of the preceding year.</content></clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num><heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>This section and the amendments made<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t37/s402">37 USC 402 note</ref>.</p></sidenote> by this section shall take effect on January 1, 1998.</content> </subsection> </section> <section> <num value="603">SEC. 603. </num><heading>CONSOLIDATION OF BASIC ALLOWANCE FOR QUARTERS, VARIABLE HOUSING ALLOWANCE, AND OVERSEAS HOUSING ALLOWANCES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Consolidation of Allowances</inline>.—</heading><content>Section 403 of title 37, United States Code, is amended to read as follows: <quotedContent> <section> <num value="403">“§ 403. </num><heading>Basic allowance for housing</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">General Entitlement</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Except as otherwise provided by law, a member of a uniformed service who is entitled to basic pay is entitled to a basic allowance for housing at the monthly rates prescribed under this section or another provision of law with regard to the applicable component of the basic allowance for housing. The amount of the basic allowance for housing for a member will vary according to the pay grade in which the member is assigned or distributed for basic pay purposes, the dependency status of the member, and the geographic location of the member. The basic allowance for housing may be paid in advance.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>A member of a uniformed service with dependents is not entitled to a basic allowance for housing as a member with dependents unless the member makes a certification to the Secretary concerned indicating the status of each dependent of the member. The certification shall be made in accordance with regulations prescribed by the Secretary of Defense.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Basic Allowance for Housing Inside the United States</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of Defense shall determine the costs of adequate housing in a military housing area in the United States for all members of the uniformed services entitled to a basic allowance for housing in that area. The Secretary shall base the determination upon the costs of adequate housing for civilians with comparable income levels in the same area.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><chapeau>Subject to paragraph (3), the monthly amount of a basic allowance for housing for an area of the United States for a member of a uniformed service is equal to the difference between—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>the monthly cost of adequate housing in that area, as determined by the Secretary of Defense, for members of the uniformed services serving in the same pay grade and with the same dependency status as the member; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>15 percent of the national average monthly cost of adequate housing in the United States, as determined by the Secretary, for members of the uniformed services serving in <page identifier="/us/stat/111/1776">111 STAT. 1776</page>the same pay grade and with the same dependency status as the member.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><chapeau>The rates of basic allowance for housing shall be reduced as necessary to comply with this paragraph. The total amount that may be paid for a fiscal year for the basic allowance for housing under this subsection is the product of—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>the total amount authorized to be paid for such allowance for the preceding fiscal year (as adjusted under paragraph (5)); and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><chapeau>a fraction—</chapeau> <clause class="indent2 fontsize10"><num value="i">“(i) </num><content>the numerator of which is the index of the national average monthly cost of housing for June of the preceding fiscal year; and</content></clause> <clause class="indent2 fontsize10"><num value="ii">“(ii) </num><content>the denominator of which is the index of the national average monthly cost of housing for June of the fiscal year before the preceding fiscal year.</content></clause> </subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="4">“(4) </num><content>An adjustment in the rates of the basic allowance for housing under this subsection as a result of the Secretary’s redetermination of housing costs in an area shall take effect on the same date as the effective date of the next increase in basic pay under section 1009 of this title or other provision of law.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="5">“(5) </num><content>In making a determination under paragraph (3) for a fiscal year, the amount authorized to be paid for the preceding fiscal year for the basic allowance for housing shall be adjusted to reflect changes during the year for which the determination is made in the number, grade distribution, geographic distribution in the United States, and dependency status of members of the uniformed services entitled to the allowance from the number of such members during the preceding fiscal year.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="6">“(6) </num><content>So long as a member of a uniformed service retains uninterrupted eligibility to receive a basic allowance for housing within an area of the United States, the monthly amount of the allowance for the member may not be reduced as a result of changes in housing costs in the area, changes in the national average monthly cost of housing, or the promotion of the member.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="7">“(7) </num><content>In the case of a member without dependents who is assigned to duty inside the United States, the location or the circumstances of which make it necessary that the member be reassigned under the conditions of low-cost or no-cost permanent change of station or permanent change of assignment, the member may be treated as if the member were not reassigned if the Secretary concerned determines that it would be inequitable to base the member’s entitlement to, and amount of, a basic allowance for housing on the cost of housing in the area to which the member is reassigned.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Basic Allowance for Housing Outside the United States</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of Defense may prescribe an overseas basic allowance for housing for a member of a uniformed service who is on duty outside of the United States. The Secretary shall establish the basic allowance for housing under this subsection on the basis of housing costs in the overseas area in which the member is assigned.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>So long as a member of a uniformed service retains uninterrupted eligibility to receive a basic allowance for housing in an overseas area and the actual monthly cost of housing for the member is not reduced, the monthly amount of the allowance in an area outside the United States may not be reduced as a result <page identifier="/us/stat/111/1777">111 STAT. 1777</page>of changes in housing costs in the area or the promotion of the member. The monthly amount of the allowance may be adjusted to reflect changes in currency rates.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Basic Allowance for Housing When Dependents Are Unable To Accompany Member</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>A member of a uniformed service with dependents who is on permanent duty at a location described in paragraph (2) is entitled to a family separation basic allowance for housing under this subsection at a monthly rate equal to the rate of the basic allowance for housing established under subsection (b) or the overseas basic allowance for housing established under subsection (c), whichever applies to that location, for members in the same grade at that location without dependents.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><chapeau>A permanent duty location referred to in paragraph (1) is a location—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>to which the movement of the member’s dependents is not authorized at the expense of the United States under section 406 of this title, and the member’s dependents do not reside at or near the location; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>at which quarters of the United States are not available for assignment to the member.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>In the case of a member with dependents who is assigned to duty at a location or under circumstances that, as determined by the Secretary concerned, require the member’s dependents to reside at a different location, the member shall receive a basic allowance for housing, as provided in subsection (a) or (b), as if the member were assigned to duty in the area in which the dependents reside, regardless of whether the member resides in quarters of the United States or is also entitled to a family separation basic allowance for housing by reason of paragraph (1).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="4">“(4) </num><content>The family separation basic allowance for housing under this subsection shall be in addition to any other allowance or per diem that the member is otherwise entitled to receive under this title. A member may receive a basic allowance for housing under both paragraphs (1) and (3).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Effect of Assignment to Quarters</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Except as otherwise provided by law, a member of a uniformed service who is assigned to quarters of the United States or a housing facility under the jurisdiction of a uniformed service appropriate to the grade, rank, or rating of the member and adequate for the member and dependents of the member, if with dependents, is not entitled to a basic allowance for housing.</content> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>A member without dependents who is in a pay grade above pay grade E–6 and who is assigned to quarters in the United States or a housing facility under the jurisdiction of a uniformed service, appropriate to the grade or rank of the member and adequate for the member, may elect not to occupy those quarters and instead to receive the basic allowance for housing prescribed for the member’s pay grade by this section.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>A member without dependents who is in pay grade E–6 and who is assigned to quarters of the United States that do not meet the minimum adequacy standards established by the Secretary of Defense for members in such pay grade, or to a housing facility under the jurisdiction of a uniformed service that does not meet such standards, may elect not to occupy such quarters or facility and instead to receive the basic allowance for housing prescribed for the member’s pay grade under this section.<page identifier="/us/stat/111/1778">111 STAT. 1778</page></content></paragraph> <paragraph class="indent0 fontsize10"><num value="4">“(4) </num><content>The Secretary concerned may deny the right to make an election under paragraph (2) or (3) if the Secretary determines that the exercise of such an election would adversely affect a training mission, military discipline, or military readiness.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="5">“(5) </num><content>A member with dependents who is assigned to quarters of the United States or a housing facility under the jurisdiction of a uniformed service may be paid the basic allowance for housing if, because of orders of competent authority, the dependents are prevented from occupying those quarters.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f) </num><heading><inline class="smallCaps">Ineligibility During Initial Field Duty or Sea Duty</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>A member of a uniformed service without dependents who makes a permanent change of station for assignment to a unit conducting field operations is not entitled to a basic allowance for housing while on that initial field duty unless the commanding officer of the member certifies that the member was necessarily required to procure quarters at the member’s expense.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>Except as provided in subparagraphs (B) and (C), a member of a uniformed service without dependents who is in a pay grade below pay grade E–6 is not entitled to a basic allowance for housing while the member is on sea duty.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote> <content>Under regulations prescribed by the Secretary concerned, the Secretary may authorize the payment of a basic allowance for housing to a member of a uniformed service without dependents who is serving in pay grade E–5 and is assigned to sea duty. In prescribing regulations under this subparagraph, the Secretary concerned shall consider the availability of quarters for members serving in pay grade E–5.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">“(C) </num><content>Notwithstanding section 421 of this title, two members of the uniformed services in a pay grade below pay grade E–6 who are married to each other, have no other dependents, and are simultaneously assigned to sea duty are jointly entitled to one basic allowance for housing during the period of such simultaneous sea duty. The amount of the allowance shall be based on the without dependents rate for the pay grade of the senior member of the couple. However, this subparagraph shall not apply to a couple if one or both of the members are entitled to a basic allowance for housing under subparagraph (B).</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>The Secretary of Defense, and the Secretary of Transportation with respect to the Coast Guard when it is not operating as a service in the Department of the Navy, shall prescribe regulation defining the terms ‘field duty’ and ‘sea duty’ for purposes of this section.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g) </num><heading><inline class="smallCaps">Reserve Members</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>A member of a reserve component without dependents who is called or ordered to active duty in support of a contingency operation, or a retired member without dependents who is ordered to active duty under section 688(a) of title 10 in support of a contingency operation, may not be denied a basic allowance for housing if, because of that call or order, the member is unable to continue to occupy a residence—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>which is maintained as the primary residence of the member at the time of the call or order; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>which is owned by the member or for which the member is responsible for rental payments.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>Paragraph (1) shall not apply if the member is authorized transportation of household goods under section 406 of this title as part of the call or order to active duty described in such paragraph.<page identifier="/us/stat/111/1779">111 STAT. 1779</page></content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>The Secretary of Defense shall establish a rate of basic allowance for housing to be paid to a member of a reserve component while the member serves on active duty under a call or order to active duty specifying a period of less than 140 days, unless the call or order to active duty is in support of a contingency operation.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">“(h) </num><heading><inline class="smallCaps">Rental of Public Quarters</inline>.—</heading><content>Notwithstanding any other law (including those restricting the occupancy of housing facilities under the jurisdiction of a department or agency of the United States by members, and their dependents, of the armed forces above specified grades, or by members, and their dependents, of the National Oceanic and Atmospheric Administration and the Public Health Service), a member of a uniformed service, and the dependents of the member, may be accepted as tenants in, and may occupy on a rental basis, any of those housing facilities, other than public quarters constructed or designated for assignment to an occupancy without charge by such a member and the dependents of the member, if any. Such a member may not, because of occupancy under this subsection, be deprived of any money allowance to which the member is otherwise entitled for the rental of quarters.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="i">“(i) </num><heading><inline class="smallCaps">Temporary Housing Allowance While in Travel or Leave Status</inline>.—</heading><content>A member of a uniformed service who is in a pay grade E–4 (4 or more years of service) or above is entitled to a temporary basic allowance for housing (at a rate determined by the Secretary of Defense) while the member is in a travel or leave status between permanent duty stations, including time granted as delay en route or proceed time, when the member is not assigned to quarters of the United States.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="j">“(j) </num><heading><inline class="smallCaps">Aviation Cadets</inline>.—</heading><content>The eligibility of an aviation cadet of the Navy, Air Force, Marine Corps, or Coast Guard for a basic allowance for housing shall be determined as if the aviation cadet were a member of the uniformed services in pay grade E–4.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="k">“(k) </num><heading><inline class="smallCaps">Administration</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of Defense shall prescribe<sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote> regulations for the administration of this section.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The Secretary concerned may make such determinations as may be necessary to administer this section, including determinations of dependency and relationship. When warranted by the circumstances, the Secretary concerned may reconsider and change or modify any such determination. The authority of the Secretary concerned under this subsection may be delegated. Any determination made under this section with regard to a member of the uniformed services is final and is not subject to review by any accounting officer of the United States or a court, unless there is fraud or gross negligence.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>Parking facilities (including utility connections) provided members of the uniformed services for house trailers and mobile homes not owned by the Government shall not be considered to be quarters for the purposes of this section or any other provision of law. Any fees established by the Government for the use of such a facility shall be established in an amount sufficient to cover the cost of maintenance, services, and utilities and to amortize the cost of construction of the facility over the 25-year period beginning with the completion of such construction.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="l">“(l) </num><heading><inline class="smallCaps">Temporary Continuation of Allowance for Dependents of Members Dying on Active Duty</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of Defense, or the Secretary of Transportation in the case of the Coast Guard when not operating as a service in the Navy, may <page identifier="/us/stat/111/1780">111 STAT. 1780</page>allow the dependents of a member of the armed forces who dies on active duty and whose dependents are occupying family housing provided by the Department of Defense, or by the Department of Transportation in the case of the Coast Guard, other than on a rental basis on the date of the member’s death to continue to occupy such housing without charge for a period of 180 days.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><chapeau>The Secretary concerned may pay a basic allowance for housing (at the rate that is payable for members of the same grade and dependency status as the deceased member for the area where the dependents are residing) to the dependents of a member of the uniformed services who dies while on active duty and whose dependents—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>are not occupying a housing facility under the jurisdiction of a uniformed service on the date of the member’s death;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>are occupying such housing on a rental basis on such date; or</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">“(C) </num><content>vacate such housing sooner than 180 days after the date of the member’s death.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Termination date.</p></sidenote><content>The payment of the allowance under paragraph (2) shall terminate 180 days after the date of the member’s death.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="m">“(m) </num><heading><inline class="smallCaps">Members Paying Child Support</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>A member of a uniformed service with dependents may not be paid a basic allowance for housing at the with dependents rate solely by reason of the payment of child support by the member if—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>the member is assigned to a housing facility under the jurisdiction of a uniformed service; or</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>the member is assigned to sea duty, and elects not to occupy assigned quarters for unaccompanied personnel, unless the member is in a pay grade above E–4.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>A member of a uniformed service assigned to quarters of the United States or a housing facility under the jurisdiction of a uniformed service who is not otherwise authorized a basic allowance for housing and who pays child support is entitled to the basic allowance for housing differential, except for months for which the amount payable for the child support is less than the rate of the differential. Payment of a basic allowance for housing differential does not affect any entitlement of the member to a partial allowance for quarters under subsection (n).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><chapeau>The basic allowance for housing differential to which a member is entitled under paragraph (2) is the amount equal to the difference between—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>the rate of the basic allowance for quarters (with dependents) for the member’s pay grade, as such rate was in effect on December 31, 1997, under this section (as in effect on that date); and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>the rate of the basic allowance for quarters (without dependents) for the member’s pay grade, as such rate was in effect on December 31, 1997, under this section (as in effect on that date).</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="4">“(4) </num><content>Whenever the rates of basic pay for members of the uniformed services are increased, the monthly amount of the basic allowance for housing differential computed under paragraph (3) shall be increased by the average percentage increase in the rates of basic pay. The effective date of the increase shall be the same date as the effective date of the increase in the rates of basic pay.<page identifier="/us/stat/111/1781">111 STAT. 1781</page></content></paragraph> <paragraph class="indent0 fontsize10"><num value="5">“(5) </num><content>In the case of two members, who have one or more common dependents (and no others), who are not married to each other, and one of whom pays child support to the other, the amount of the basic allowance for housing paid to each member under this section shall be reduced in accordance with regulations prescribed by the Secretary of Defense. The total amount of the basic allowances for housing paid to the two members may not exceed the sum of the amounts of the allowance to which each member would be otherwise entitled under this section.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="n">“(n) </num><heading><inline class="smallCaps">Partial Allowance for Members Without Dependents</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>A member of a uniformed service without dependents who is not entitled to receive a basic allowance for housing under subsection (b), (c), or (d) is entitled to a partial basic allowance for housing at a rate determined by the Secretary of Defense under paragraph (2).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The rate of the partial basic allowance for housing is the partial rate of the basic allowance for quarters for the member’s pay grade as such partial rate was in effect on December 31, 1997, under section 1009(c)(2) of this title (as such section was in effect on such date).”.</content></paragraph> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Transition to Basic Allowance for Housing</inline>.—</heading><content>The Secretary<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t37/s403">37 USC 403 note</ref>.</p></sidenote> of Defense shall develop and implement a plan to incrementally manage the rate of growth of the various components of the basic allowance for housing authorized by section 403 of title 37, United States Code (as amended by subsection (a)), during a transition period of not more than six years. During the transition period, the Secretary may continue to use the authorities provided under sections 403, 403a, 405(b), and 427(a) of title 37, United States Code (as in effect on the day before the date of the enactment of this Act), but subject to such modifications as the Secretary considers necessary, to provide allowances for members of the uniformed services.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Repeal of Superseded Authorities</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Section 403a of title 37, United States Code, is repealed.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>Section 405 of such title is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking out subsection (b); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by redesignating subsections (c) and (d) as subsections (b) and (c), respectively.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><chapeau>Section 427 of such title is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking out subsection (a); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><chapeau>in subsection (b)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>by striking out “(b) Additional Separation Allowance.—” and inserting in lieu thereof “(a) Entitlement to Allowance.—”;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><chapeau>in paragraph (1)—</chapeau> <subclause class="indent4 fontsize10"><num value="I">(I) </num><content>by striking out “, including subsection (a),” in the matter preceding the subparagraphs;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">(II) </num><content>by inserting “<quotedText>or</quotedText>” at the end of subparagraph (B);</content></subclause> <subclause class="indent4 fontsize10"><num value="III">(III) </num><content>by striking out or” at the end of subparagraph (C) and inserting in lieu thereof a period; and</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">(IV) </num><content>by striking out subparagraph (D);</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="iii">(iii) </num><chapeau>in paragraph (3)—</chapeau> <subclause class="indent4 fontsize10"><num value="I">(I) </num><content>by striking out “(3) An allowance” and inserting in lieu thereof “(b) Entitlement When No Residence or Household Maintained for Dependents.—An allowance”; and<page identifier="/us/stat/111/1782">111 STAT. 1782</page></content></subclause> <subclause class="indent4 fontsize10"><num value="II">(II) </num><content>by striking out “this subsection” and inserting in lieu thereof “subsection (a)”;</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="iv">(iv) </num><chapeau>in paragraph (4)—</chapeau> <subclause class="indent4 fontsize10"><num value="I">(I) </num><content>by striking out “(4) A member” and inserting in lieu thereof “(c) Effect of Election to Serve Unaccompanied Tour of Duty.—A member”; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">(II) </num><content>by striking out “paragraph (1)(A) of this subsection” and inserting in lieu thereof “subsection (a)(1)(A)”; and</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="v">(v) </num><content>by striking out paragraph (5) and inserting in lieu thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Entitlement While Spouse Entitled to Basic Pay</inline>.—</heading> <content>A member married to another member of the uniformed services becomes entitled, regardless of any other dependency status, to an allowance under subsection (a) by virtue of duty prescribed in subparagraph (A), (B), or (C) of paragraph (1) of such subsection if the members were residing together immediately before being separated by reasons of execution of military orders. Section 421 of this title does not apply to bar the entitlement to an allowance under this section. However, not more than one monthly allowance may be paid with respect to a married couple under this section.”.</content> </subsection> </quotedContent> </content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The table of sections at the beginning of chapter 7 of title 37, United States Code, is amended by striking out the items relating to sections 403 and 403a and inserting in lieu thereof the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“403.</designator> <label>Basic allowance for housing.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>Title 37, United States Code, is amended—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>in section 101(25), by striking out “basic allowance for quarters (including any variable housing allowance or station housing allowance)” and inserting in lieu thereof “basic allowance for housing”;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>in section 406(c), by striking out “sections 404 and 405” and inserting in lieu thereof “sections 403(c), 404, and 405”;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><content>in section 420(c), by striking out “quarters” and inserting in lieu thereof “housing”;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="D">(D) </num><content>in section 551(3)(D), by striking out “basic allowance for quarters” and inserting in lieu thereof “basic allowance for housing”; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="E">(E) </num><content>in section 1014(a), by striking out “basic allowance for quarters” and inserting in lieu thereof “basic allowance for housing”.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>Title 10, United States Code, is amended—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>in section 708(c)(1), by striking out “basic allowance for quarters or basic allowance for subsistence” and inserting in lieu thereof “basic allowance for housing under section 403 of title 37, basic allowance for subsistence under section 402 of such title,”;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><chapeau>in section 2830(a)—</chapeau> <clause class="indent2 fontsize10"><num value="i">(i) </num><content>in paragraph (1), by striking out “basic allowance for quarters” and inserting in lieu thereof “basic allowance for housing under section 403 of title 37”; and</content></clause> <clause class="indent2 fontsize10"><num value="ii">(ii) </num><content>in paragraph (2), by striking out “basic allowance for quarters” and inserting in lieu thereof “basic allowance for housing”;<page identifier="/us/stat/111/1783">111 STAT. 1783</page></content></clause> </subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><chapeau>in section 2882(b)—</chapeau> <clause class="indent2 fontsize10"><num value="i">(i) </num><content>in paragraph (1), by striking out “section 403(b)” and inserting in lieu thereof “section 403”; and</content></clause> <clause class="indent2 fontsize10"><num value="ii">(ii) </num><content>in paragraph (2), by striking out “basic allowance for quarters” and all that follows through the end of the paragraph and inserting in lieu thereof “basic allowance for housing under section 403 of title 37.”;</content></clause> </subparagraph> <subparagraph class="indent1 fontsize10"><num value="D">(D) </num><chapeau>in section 7572(b)—</chapeau> <clause class="indent2 fontsize10"><num value="i">(i) </num><content>in paragraph (1), by striking out “the total of—” and all that follows through the end of the paragraph and inserting in lieu thereof “the basic allowance for housing payable under section 403 of title 37 to a member of the same pay grade without dependents for the period during which the member is deprived of quarters on board ship”; and</content></clause> <clause class="indent2 fontsize10"><num value="ii">(ii) </num><content>in paragraph (2), by striking out “basic allowance for quarters” and inserting in lieu thereof “basic allowance for housing”; and</content></clause> </subparagraph> <subparagraph class="indent1 fontsize10"><num value="E">(E) </num><content>in section 7573, by striking out “basic allowance for quarters” and inserting in lieu thereof “basic allowance for housing under section 403 of title 37”.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><content>Section 5561(6)(D) of title 5, United States Code, is amended by striking out “basic allowance for quarters” and inserting in lieu thereof “basic allowance for housing”.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="4">(4) </num><content>Section 107(b) of title 32, United States Code, is amended by striking out “and quarters” and inserting in lieu thereof “and housing”.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="5">(5) </num><content>Section 4(k)(10) of the Military Selective Service Act (50 U.S.C. App. 454(k)(10)) is amended by striking out “as such terms” and all that follows through “extended or amended” and inserting in lieu thereof “shall be entitled to receive a dependency allowance equal to the basic allowance for housing provided for persons in pay grade E–1 under section 403 of title 37, United States Code,”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>This section and the amendments made<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s5561">5 USC 5561 note</ref>.</p></sidenote> by this section shall take effect on January 1, 1998.</content> </subsection> </section> <section> <num value="604">SEC. 604. </num><heading>REVISION OF AUTHORITY TO ADJUST COMPENSATION NECESSITATED BY REFORM OF SUBSISTENCE AND HOUSING ALLOWANCES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Removal of References to BAS and BAQ</inline>.—</heading><paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Section 1009 of title 37, United States Code, is amended to read as follows: <quotedContent> <section> <num value="1009">“§ 1009. </num><heading>Adjustments of monthly basic pay</heading><sidenote><p class="indent0 firstIndent0 fontsize8">President.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Adjustment Required</inline>.—</heading><content>Whenever the General Schedule of compensation for Federal classified employees, as contained in section 5332 of title 5, is adjusted upward as provided in section 5303 of such title, the President shall immediately make an upward adjustment in the monthly basic pay authorized members of the uniformed services by section 203(a) of this title.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Effectiveness of Adjustment</inline>.—</heading><chapeau>An adjustment under this section shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>have the force and effect of law; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>carry the same effective date as that applying to the compensation adjustments provided General Schedule employees.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Equal Percentage Increase for All Members</inline>.—</heading><content>Subject to subsection (d), an adjustment under this section shall provide <page identifier="/us/stat/111/1784">111 STAT. 1784</page>all eligible members with an increase in the monthly basic pay which is of the same percentage as the overall average percentage increase in the General Schedule rates of both basic pay and locality pay for civilian employees.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Allocation of Increase Among Pay Grades and Years-of-Service</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Subject to paragraph (2), whenever the President determines such action to be in the best interest of the Government, he may allocate the overall percentage increase in the monthly basic pay under subsection (a) among such pay grade and years-of-service categories as he considers appropriate.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><chapeau>In making any allocation of an overall percentage increase in basic pay under paragraph (1)—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>the amount of the increase in basic pay for any given pay grade and years-of-service category after any allocation made under this subsection may not be less than 75 percent of the amount of the increase in the monthly basic pay that would otherwise have been effective with respect to such pay grade and years-of-service category under subsection (c); and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>the percentage increase in the monthly basic pay in the case of any member of the uniformed services with four years or less service may not exceed the overall percentage increase in the General Schedule rates of basic pay for civilian employees.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Notice of Allocations</inline>.—</heading><content>Whenever the President plans to exercise the authority of the President under subsection (d) with respect to any anticipated increase in the monthly basic pay of members of the uniformed services, the President shall advise Congress, at the earliest practicable time prior to the effective date of such increase, regarding the proposed allocation of such increase.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f) </num><heading><inline class="smallCaps">Quadrennial Assessment of Allocations</inline>.—</heading><content>The allocations of increases made under this section shall be assessed in conjunction with the quadrennial review of military compensation required by section 1008(b) of this title.”.</content> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The item relating to such section in the table of sections at the beginning of chapter 19 of such title is amended to read as follows: <quotedContent> <toc> <referenceItem role="section"><designator>“1009.</designator> <label>Adjustments of monthly basic pay .”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t37/s109">37 USC 109 note</ref>.</p></sidenote><heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by subsection (a) shall take effect on January 1, 1998.</content> </subsection> </section> <section> <num value="605">SEC. 605. </num><heading>PROTECTION OF TOTAL COMPENSATION OF MEMBERS WHILE PERFORMING CERTAIN DUTY.</heading> <chapeau>Section 1009 of title 37, United States Code, as amended by section 604, is further amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by redesignating subsection (f) as subsection (g); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting after subsection (e) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f) </num><heading><inline class="smallCaps">Protection of Member’s Total Compensation While Performing Certain Duty</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The total daily equivalent amount of the elements of compensation described in paragraph (3), together with other pay and allowances under this title, to be paid to a member of the uniformed services who is temporarily assigned to duty away from the member’s permanent duty station or to duty under field conditions at the member’s permanent duty station shall not be less, for any day during the assignment period, than the total amount, for the day immediately preceding the date of <page identifier="/us/stat/111/1785">111 STAT. 1785</page>the assignment, of the elements of compensation and other pay and allowances of the member.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>Paragraph (1) shall not apply with respect to an element of compensation or other pay or allowance of a member during an assignment described in such paragraph to the extent that the element of compensation or other pay or allowance is reduced or terminated due to circumstances unrelated to the assignment.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><chapeau>The elements of compensation referred to in this subsection mean—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>the monthly basic pay authorized members of the uniformed services by section 203(a) of this title;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>the basic allowance for subsistence authorized members of the uniformed services by section 402 of this title; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">“(C) </num><content>the basic allowance for housing authorized members of the uniformed services by section 403 of this title.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> </section> </subtitle> <subtitle> <num value="B">Subtitle B—</num><heading>Bonuses and Special and Incentive Pays</heading> <section> <num value="611">SEC. 611. </num><heading>ONE-YEAR EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY AUTHORITIES FOR RESERVE FORCES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Special Pay for Health Professionals in Critically Short Wartime Specialties</inline>.—</heading><content>Section 302g(f) of title 37, United States Code, is amended by striking out “September 30, 1998” and inserting in lieu thereof “September 30, 1999”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Selected Reserve Reenlistment Bonus</inline>.—</heading><content>Section 308b(f) of title 37, United States Code, is amended by striking out “September 30, 1998” and inserting in lieu thereof “September 30, 1999”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Selected Reserve Enlistment Bonus</inline>.—</heading><content>Section 308c(e) of title 37, United States Code, is amended by striking out “September 30, 1998” and inserting in lieu thereof “September 30, 1999”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Special Pay for Enlisted Members Assigned to Certain High Priority Units</inline>.—</heading><content>Section 308d(c) of title 37, United States Code, is amended by striking out “September 30, 1998” and inserting in lieu thereof “September 30, 1999”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Selected Reserve Affiliation Bonus</inline>.—</heading><content>Section 308e(e) of title 37, United States Code, is amended by striking out “September 30, 1998” and inserting in lieu thereof “September 30, 1999”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Ready Reserve Enlistment and Reenlistment Bonus</inline>.—</heading><content>Section 308h(g) of title 37, United States Code, is amended by striking out “September 30, 1998” and inserting in lieu thereof “September 30, 1999”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num><heading><inline class="smallCaps">Prior Service Enlistment Bonus</inline>.—</heading><content>Section 308i(f) of title 37, United States Code, as redesignated by section 622, is amended by striking out “September 30, 1998” and inserting in lieu thereof “September 30, 1999”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h) </num><heading><inline class="smallCaps">Repayment of Education Loans for Certain Health Professionals Who Serve in the Selected Reserve</inline>.—</heading><content>Section 16302(d) of title 10, United States Code, is amended by striking out “October 1, 1998” and inserting in lieu thereof “October 1, 1999”.<page identifier="/us/stat/111/1786">111 STAT. 1786</page></content> </subsection> </section> <section> <num value="612">SEC. 612. </num><heading>ONE-YEAR EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY AUTHORITIES FOR NURSE OFFICER CANDIDATES, REGISTERED NURSES, AND NURSE ANESTHETISTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Nurse Officer Candidate Accession Program</inline>.—</heading><content>Section 2130a(a)(1) of title 10, United States Code, is amended by striking out “September 30, 1998” and inserting in lieu thereof “September 30, 1999”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Accession Bonus for Registered Nurses</inline>.—</heading><content>Section 302d(a)(1) of title 37, United States Code, is amended by striking out “September 30, 1998” and inserting in lieu thereof “September 30, 1999”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Incentive Special Pay for Nurse Anesthetists</inline>.—</heading><content>Section 302e(a)(1) of title 37, United States Code, is amended by striking out “September 30, 1998” and inserting in lieu thereof “September 30, 1999”.</content> </subsection> </section> <section> <num value="613">SEC. 613. </num><heading>ONE-YEAR EXTENSION OF AUTHORITIES RELATING TO PAYMENT OF OTHER BONUSES AND SPECIAL PAYS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Aviation Officer Retention Bonus</inline>.—</heading><content>Section 301b(a) of title 37, United States Code, is amended by striking out “September 30, 1998,” and inserting in lieu thereof “September 30, 1999,”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Reenlistment Bonus for Active Members</inline>.—</heading><content>Section 308(g) of title 37, United States Code, is amended by striking out “September 30, 1998” and inserting in lieu thereof “September 30, 1999”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Enlistment Bonuses for Members With Critical Skills</inline>.—</heading><content>Sections 308a(c) and 308ftc) of title 37, United States Code, are each amended by striking out “September 30, 1998” and inserting in lieu thereof “September 30, 1999”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Special Pay for Nuclear Qualified Officers Extending Period of Active Service</inline>.—</heading><content>Section 312(e) of title 37, United States Code, is amended by striking out “September 30, 1998” and inserting in lieu thereof “September 30, 1999”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Nuclear Career Accession Bonus</inline>.—</heading><content>Section 312b(c) of title 37, United States Code, is amended by striking out “September 30, 1998” and inserting in lieu thereof “September 30, 1999”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Nuclear Career Annual Incentive Bonus</inline>.—</heading><content>Section 312c(d) of title 37, United States Code, is amended by striking out “October 1, 1998” and inserting in lieu thereof “October 1, 1999”.</content> </subsection> </section> <section> <num value="614">SEC. 614. </num><heading>INCREASE IN MINIMUM MONTHLY RATE OF HAZARDOUS DUTY INCENTIVE PAY FOR CERTAIN MEMBERS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Aerial Flight Crewmembers</inline>.—</heading><chapeau>The table in subsection (b) of section 301 of title 37, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out “110” each place it appears and inserting in lieu thereof “150”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking out “125” each place it appears and inserting in lieu thereof “150”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Air Weapons Controller Aircrew</inline>.—</heading><chapeau>The table in subsection (c)(2)(A) of such section is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out “100” in the first column of amounts and inserting in lieu thereof “150”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking out “110” in the last column of amounts and inserting in lieu thereof “150”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by striking out “125” each place it appears and inserting in lieu thereof “150”.<page identifier="/us/stat/111/1787">111 STAT. 1787</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Other Members</inline>.—</heading><chapeau>Subsection (c)(1) of such section is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out “$110” and inserting in lieu thereof “$150”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking out “$165” and inserting in lieu thereof “$225”.</content></paragraph> </subsection> </section> <section> <num value="615">SEC. 615. </num><heading>INCREASE IN AVIATION CAREER INCENTIVE PAY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Amounts</inline>.—</heading><chapeau>The table in subsection (b)(1) of section 301a of title 37, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="b">(1) </num><content>by inserting at the end of phase I of the table the following: <quotedContent> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <tbody> <tr> <td style="text-align:left" leaders="yes">“Over 14</td> <td style="text-align:right">840”,</td> </tr> </tbody> </table> </quotedContent> </content></paragraph> <continuation class="indent0 fontsize10">and</continuation> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking out phase II of the table and inserting in lieu thereof the following: <quotedContent> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> <p xmlns="http://schemas.gpo.gov/xml/uslm" role="title" class="centered">“Phase II</p> </caption> <thead> <tr> <th style="text-align:left">“Years of service as an officer:</th> <th style="text-align:right">“Monthly rate</th> </tr> </thead> <tbody> <tr> <td style="text-align:left" leaders="yes">“Over 22</td> <td style="text-align:right">$585</td> </tr> <tr> <td style="text-align:left" leaders="yes">“Over 23</td> <td style="text-align:right">495</td> </tr> <tr> <td style="text-align:left" leaders="yes">“Over 24</td> <td style="text-align:right">385</td> </tr> <tr> <td style="text-align:left" leaders="yes">“Over 25</td> <td style="text-align:right">250”.</td> </tr> </tbody> </table> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><content>Such subsection is further amended in the matter after the table by striking out “18 years” both places it appears and inserting in lieu thereof “22 years”</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Effective Date and Applicability</inline>.—</heading><content>The amendments<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t37/s301a">37 USC 301a note</ref>.</p></sidenote> made by subsection (a) shall take effect on January 1, 1999, and shall apply with respect to months beginning on or after that date.</content> </subsection> </section> <section> <num value="616">SEC. 616. </num><heading>MODIFICATION OF AVIATION OFFICER RETENTION BONUS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Increase in Bonus Amounts</inline>.—</heading><chapeau>Subsection (c) of section 301b of title 37, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in paragraph (1), by striking out “$12,000” and inserting in lieu thereof “$25,000”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in paragraph (2), by striking out “$6,000” and inserting in lieu thereof “$12,000”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><content>Duration of Agreement.—Paragraph (2) of such subsection is further amended by striking out “one or two years” and inserting in lieu thereof “one, two, or three years”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Content of Annual Report</inline>.—</heading><chapeau>Subsection (i)(1) of such section is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>and</quotedText>” at the end of subparagraph (A);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking out “; and” at the end of subparagraph (B) and inserting in lieu thereof a period; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by striking out subparagraph (C).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Definition of Aviation Specialty</inline>.—</heading><content>Subsection (j)(2) of such section is amended by inserting “<quotedText>specific</quotedText>” before “community” both places it appears.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Effective Dates and Applicability</inline>.—</heading><content>The amendments<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t37/s301b">37 USC 301b note</ref>.</p></sidenote> made by this section shall take effect as of October 1, 1996, and shall apply with respect to agreements accepted under section 301b of title 37, United States Code, on or after that date.<page identifier="/us/stat/111/1788">111 STAT. 1788</page></content> </subsection> </section> <section> <num value="617">SEC. 617. </num><heading>AVAILABILITY OF MULTIYEAR RETENTION BONUS FOR DENTAL OFFICERS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Availability of Retention Bonus</inline>.—</heading><content>Chapter 5 of title 37, United States Code, is amended by inserting after section 301d the following new section: <quotedContent> <section> <num value="301e">“§ 301e. </num><heading>Multiyear retention bonus: dental officers of the armed forces</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Bonus Authorized</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>A dental officer described in subsection (b) who executes a written agreement to remain on active duty for two, three, or four years after completion of any other active-duty service commitment may, upon acceptance of the written agreement by the Secretary of the military department concerned, be paid a retention bonus as provided in this section.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The amount of a retention bonus under paragraph (1) may not exceed $14,000 for each year covered by a four-year agreement. The maximum yearly retention bonus for two-year and three-year agreements shall be reduced to reflect the shorter service commitment.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote><heading><inline class="smallCaps">Officers Automatically Eligible</inline>.—</heading><chapeau>Subsection (a) applies to an officer of the armed forces who—</chapeau> <paragraph class="indent0 fontsize10"><num value="1">“(1) </num><content>is an officer of the Dental Corps of the Army or the Navy or an officer of the Air Force designated as a dental officer;</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>has a dental specialty in oral and maxillofacial surgery;</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>is in a pay grade below pay grade 0–7;</content></paragraph> <paragraph class="indent0 fontsize10"><num value="4">“(4) </num><content>has at least eight years of creditable service (computed as described in section 302b(g) of this title) or has completed any active-duty service commitment incurred for dental education and training; and</content></paragraph> <paragraph class="indent0 fontsize10"><num value="5">“(5) </num><content>has completed initial residency training (or will complete such training before September 30 of the fiscal year in which the officer enters into an agreement under subsection (a)).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Extension of Bonus to Other Dental Officers</inline>.—</heading><content>At the discretion of the Secretary of the military department concerned, the Secretary may enter into a written agreement described in subsection (a)(1) with a dental officer who does not have the dental specialty specified in subsection (b)(2), and pay a retention bonus to such an officer as provided in this section, if the officer otherwise satisfies the eligibility requirements specified in subsection (b). The Secretaries shall exercise the authority provided in this section in a manner consistent with regulations prescribed by the Secretary of Defense.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Refunds</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Refunds shall be required, on a pro rata basis, of sums paid under this section if the officer who has received the payment fails to complete the total period of active duty specified in the agreement, as conditions and circumstances warrant.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>An obligation to reimburse the United States imposed under paragraph (1) is for all purposes a debt owed to the United States.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>A discharge in bankruptcy under title 11, United States Code, that is entered less than five years after the termination of an agreement under this section does not discharge the member signing such agreement from a debt arising under such agreement <page identifier="/us/stat/111/1789">111 STAT. 1789</page>or under paragraph (1). This paragraph applies to any case commenced<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> under title 11 after the date of the enactment of the National Defense Authorization Act for Fiscal Year 1998.”.</content></paragraph> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 301d the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“301e.</designator> <label>Multiyear retention bonus: dental officers of the armed forces ”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="618">SEC. 618. </num><heading>INCREASE IN VARIABLE AND ADDITIONAL SPECIAL PAYS FOR CERTAIN DENTAL OFFICERS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Variable Special Pay for Junior Officers</inline>.—</heading><content>Paragraph (2) of section 302b(a) of title 37, United States Code, is amended by striking out subparagraphs (C), (D), (E), and (F) and inserting in lieu thereof the following new subparagraphs: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>$7,000 per year, if the officer has at least six but less than eight years of creditable service.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>$12,000 per year, if the officer has at least eight but less than 12 years of creditable service.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E) </num><content>$10,000 per year, if the officer has at least 12 but less than 14 years of creditable service.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F) </num><content>$9,000 per year, if the officer has at least 14 but less than 18 years of creditable service.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G) </num><content>$8,000 per year, if the officer has 18 or more years of creditable service.”.</content></subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Variable Special Pay for Senior Officers</inline>.—</heading><content>Paragraph (3) of such section is amended by striking out “$1,000” and inserting in lieu thereof “$7,000”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Additional Special Pay</inline>.—</heading><content>Paragraph (4) of such section is amended by striking out subparagraphs (B), (C), and (D) and inserting in lieu thereof the following new subparagraphs: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>$6,000 per year, if the officer has at least three but less than 10 years of creditable service.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>$15,000 per year, if the officer has 10 or more years of creditable service.”.</content></subparagraph> </quotedContent> </content></subsection> </section> <section> <num value="619">SEC. 619. </num><heading>AVAILABILITY OF SPECIAL PAY FOR DUTY AT DESIGNATED HARDSHIP DUTY LOCATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Special Pay Authorized</inline>.—</heading><content>Subsection (a) of section 305 of title 37, United States Code, is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Special Pay Authorized</inline>.—</heading><content>A member of a uniformed service who is entitled to basic pay may be paid special pay under this section at a monthly rate not to exceed $300 while the member is on duty at a location in the United States or outside the United States designated by the Secretary of Defense as a hardship duty location.”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Cross References and Regulations</inline>.—</heading><chapeau>Such section is further amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>in subsection (b)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by inserting “<quotedText>Exception for Certain Members Serving in Certain Locations.—</quotedText>” after “(b)”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking out “as foreign duty pay” and inserting in lieu thereof “as hardship duty location pay”;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>in subsection (c)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by inserting “<quotedText>Exception for Members Receiving Career Sea Pay.—</quotedText>” after “(c)”; and<page identifier="/us/stat/111/1790">111 STAT. 1790</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking out “special pay under this section” and inserting in lieu thereof “hardship duty location pay under subsection (a)”; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by adding at the end the following new subsection: “(d) Regulations.—The Secretary of Defense shall prescribe regulations for the provision of hardship duty location pay under subsection (a), including the specific monthly rates at which the special pay will be available.”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Clerical Amendments</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The heading of such section is amended to read as follows: <quotedContent> <section> <num value="305">“§ 305. </num><heading>Special pay: hardship duty location pay”.</heading> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of chapter 5 of title 37, United States Code, is amended by striking out the item relating to section 305 and inserting in lieu thereof the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“305.</designator> <label>Special pay: hardship duty location pay.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>Section 907(d) of title 37, United States Code, is amended by striking out “duty at certain places” and inserting in lieu thereof “duty at a hardship duty location”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t37/s305">37 USC 305 note</ref>.</p></sidenote><heading><inline class="smallCaps">Transition</inline>.—</heading><content>Until such time as the Secretary of Defense prescribes regulations regarding the provision of hardship duty location pay under section 305 of title 37, United States Code, as amended by this section, the Secretary may continue to use the authority provided by such section 305, as in effect on the day before the date of the enactment of this Act, to provide special pay to enlisted members of the uniformed services on duty at certain places.</content> </subsection> </section> <section> <num value="620">SEC. 620. </num><heading>DEFINITION OF SEA DUTY FOR PURPOSES OF CAREER SEA PAY.</heading> <chapeau>Section 305a(d) of title 37, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in paragraph (1)(A), by striking out “, ship-based staff, or ship-based aviation unit”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in paragraph (1)(B), by striking out “or ship-based staff”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>by inserting after paragraph (1) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The Secretary concerned may designate duty performed by a member while serving on a ship the primary mission of which is accomplished either while under way or in port as ‘sea duty” for purposes of this section, even though the duty is performed while the member is permanently or temporarily assigned to a ship-based staff or other unit not covered by paragraph (1).”.</content></paragraph> </quotedContent> </content></paragraph> </section> <section> <num value="621">SEC. 621. </num><heading>MODIFICATION OF SELECTED RESERVE REENLISTMENT BONUS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Eligible Members</inline>.—</heading><content>Subsection (a)(1) of section 308b of title 37, United States Code, is amended by striking out “ten years” and inserting in lieu thereof “14 years”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Bonus Amounts; Payment</inline>.—</heading><content>Subsection (b) of such section is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Bonus Amounts; Payment</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>The amount of a bonus under this section may not exceed—<page identifier="/us/stat/111/1791">111 STAT. 1791</page></chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>$5,000, in the case of a member who reenlists or extends an enlistment for a period of six years;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>$2,500, in the case of a member who, having never received a bonus under this section, reenlists or extends an enlistment for a period of three years; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">“(C) </num><content>$2,000, in the case of a member who, having received a bonus under this section for a previous three-year reenlistment or extension of an enlistment, reenlists or extends the enlistment for an additional period of three years.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>Any bonus payable under this section shall be disbursed in one initial payment of an amount not to exceed one-half of the total amount of the bonus and subsequent periodic partial payments of the balance of the bonus. The Secretary concerned shall prescribe the amount of each partial payment and the schedule for making the partial payments.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Special Eligibility Requirements; Number of Individual Bonuses</inline>.—</heading><content>Subsection (c) of such section is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Condition on Eligibility; Limitation on Number of Bonuses</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>To be eligible for a second bonus under this section in the amount specified in subsection (b)(1)(C), a member must—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>enter into the subsequent reenlistment or extension of an enlistment for a period of three years not later than the date on which the enlistment or extension for which the first bonus was paid would expire; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>still satisfy the designated skill or unit requirements required under subsection (a)(2).</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>A member may not be paid more than one six-year bonus or two three-year bonuses under this section.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Effect of Failure To Serve Satisfactorily</inline>.—</heading><content>Subsection (d) of such section is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Repayment of Bonus</inline>.—</heading><content>A member who receives a bonus under this section and who fails, during the period for which the bonus was paid, to serve satisfactorily in the element of the Selected Reserve of the Ready Reserve with respect to which the bonus was paid shall refund to the United States an amount that bears the same ratio to the amount of the bonus paid to the member as the period that the member failed to serve satisfactorily bears to the total period for which the bonus was paid.”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Clerical Amendments</inline>.—</heading><chapeau>Such section is further amended—</chapeau> <subsection class="indent0 fontsize10"> <num value="1">(1) </num><content>in subsection (a), by inserting “<quotedText><inline class="smallCaps">Authority and Eligibility Requirements</inline>.—</quotedText>” after “(a)”;</content> </subsection> <subsection class="indent0 fontsize10"> <num value="2">(2) </num><content>in subsection (e), by inserting “<quotedText><inline class="smallCaps">Regulations</inline>.—</quotedText>” after “(e)”; and</content> </subsection> <subsection class="indent0 fontsize10"> <num value="3">(3) </num><content>in subsection (f), by inserting “<quotedText><inline class="smallCaps">Termination of Authority</inline>.—</quotedText>” after “(f)”.</content> </subsection> </subsection> </section> <section> <num value="622">SEC. 622. </num><heading>MODIFICATION OF SELECTED RESERVE ENLISTMENT BONUS FOR FORMER ENLISTED MEMBERS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Eligible Persons</inline>.—</heading><chapeau>Subsection (a)(2) of section 308i of title 37, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subparagraph (A), by striking out “10 years” and inserting in lieu thereof “14 years”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in subparagraph (C), by striking out “and”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by redesignating subparagraph (D) as subparagraph (E);<page identifier="/us/stat/111/1792">111 STAT. 1792</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>in subparagraph (E) (as so redesignated), by inserting “<quotedText>(except under this section)</quotedText>” after “bonus”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>by inserting after subparagraph (C) the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><chapeau>is projected to occupy a position as a member of the Selected Reserve in a specialty in which—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>the person successfully served while a member on active duty; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>the person attained a level of qualification while a member on active duty commensurate with the grade and years of service of the member; and”.</content></clause> </subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Bonus Amounts; Payment</inline>.—</heading><content>Subsection (b) of such section is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Bonus Amounts; Payment</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num> <chapeau>The amount of a bonus under this section may not exceed—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>$5,000, in the case of a person who enlists for a period of six years;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>$2,500, in the case of a person who, having never received a bonus under this section, enlists for a period of three years; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">“(C) </num><content>$2,000, in the case of a person who, having received a bonus under this section for a previous three-year enlistment, reenlists or extends the enlistment for an additional period of three years.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>Any bonus payable under this section shall be disbursed in one initial payment of an amount not to exceed one-half of the total amount of the bonus and subsequent periodic partial payments of the balance of the bonus. The Secretary concerned shall prescribe the amount of each partial payment and the schedule for making the partial payments.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Special Eligibility Requirements; Number of Individual Bonuses</inline>.—</heading><content>Subsection (c) of such section is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Condition on Eligibility; Limitation on Number of Bonuses</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>To be eligible for a second bonus under this section in the amount specified in subsection (b)(1)(C), a person must—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>enter into a reenlistment or extension of an enlistment for a period of three years not later than the date on which the enlistment for which the first bonus was paid would expire; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>still satisfy the eligibility requirements under subsection (a).</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>A person may not be paid more than one six-year bonus or two three-year bonuses under this section.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Reorganization of Section</inline>.—</heading><chapeau>Such section is further amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by redesignating subsections (e), (f), and (g) as paragraphs (2), (3), and (4), respectively, of subsection (d); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by redesignating subsections (h) and (i) as subsections (e) and (f), respectively.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Conforming and Clerical Amendments</inline>.—</heading><chapeau>Such section is further amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subsection (a), by inserting “<quotedText><inline class="smallCaps">Authority and Eligibility Requirements</inline>.—</quotedText>” after “(a)”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>in subsection (d)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by inserting “<quotedText>Repayment of Bonus.—(1)</quotedText>” after “(d)”;<page identifier="/us/stat/111/1793">111 STAT. 1793</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>in paragraphs (2) and (4), as redesignated by subsection (d)(1), by striking out “subsection (d)” and inserting in lieu thereof “paragraph (1)”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><chapeau>in paragraph (3), as redesignated by subsection (d)(1)— .</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>by striking out “subsection (h)” and inserting in lieu thereof “subsection (e)”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>by striking out “subsection (d)” and inserting in lieu thereof “paragraph (1)”;</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>in subsection (e), as redesignated by subsection (d)(2), by inserting “<quotedText><inline class="smallCaps">Regulations</inline>.—</quotedText>” after “(e)”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>in subsection (f), as redesignated by subsection (d)(2), by inserting “<quotedText><inline class="smallCaps">Termination of Authority</inline>.—</quotedText>” after “(f)”.</content></paragraph> </subsection> </section> <section> <num value="623">SEC. 623. </num><heading>EXPANSION OF RESERVE AFFILIATION BONUS TO INCLUDE COAST GUARD RESERVE.</heading> <chapeau>Section 308e of title 37, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subsection (a), by striking out “Under regulations prescribed by the Secretary of Defense, the Secretary of a military department” and inserting in lieu thereof “The Secretary concerned”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in subsection (b)(3), by striking out “designated by the Secretary of Defense for the purposes of this section” and inserting in lieu thereof “designated for purposes of this section in the regulations prescribed under subsection (f)”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>in subsection (c)(3), by striking out “regulations prescribed by the Secretary of Defense” and inserting in lieu thereof “the regulations prescribed under subsection (f)”; and (4) by adding at the end the following new subsections: <quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f) </num><content>This section shall be administered under regulations prescribed<sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote> by the Secretary of Defense for the armed forces under the jurisdiction of the Secretary of Defense and by the Secretary of Transportation for the Coast Guard when the Coast Guard is not operating as a service in the Navy.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g) </num><content>The authority in subsection (a) does not apply to the Secretary of Commerce and the Secretary of Health and Human Services.”.</content> </subsection> </quotedContent></content> </paragraph> </section> <section> <num value="624">SEC. 624. </num><heading>INCREASE IN SPECIAL PAY AND BONUSES FOR NUCLEAR-QUALIFIED OFFICERS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Special Pay for Officers Extending Period of Active Service</inline>.—</heading><content>Section 312(a) of title 37, United States Code, is amended by striking out “$12,000” and inserting in lieu thereof “$15,000”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Nuclear Career Accession Bonus</inline>.—</heading><content>Section 312b(a)(1) of title 37, United States Code, is amended by striking out “$8,000” and inserting in lieu thereof “$10,000”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Nuclear Career Annual Incentive Bonuses</inline>.—</heading><chapeau>Section 312c of title 37, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subsection (a)(1), by striking out “$10,000” and inserting in lieu thereof “$12,000”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in subsection (b)(1), by striking out “$4,500” and inserting in lieu thereof “$5,500”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Effective Date</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t37/s312">37 USC 312 note</ref>.</p></sidenote> shall take effect as of October 1, 1997.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The amendments made by subsections (a) and (b) shall<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> apply with respect to agreements accepted under sections 312(a) and 312b(a), respectively, of title 37, United States Code, on or after October 1, 1997.<page identifier="/us/stat/111/1794">111 STAT. 1794</page></content></paragraph> </subsection> </section> <section> <num value="625">SEC. 625. </num><heading>PROVISION OF BONUSES IN LIEU OF SPECIAL PAY FOR ENLISTED MEMBERS EXTENDING TOURS OF DUTY AT DESIGNATED LOCATIONS OVERSEAS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Inclusion of Bonus Incentive</inline>.—</heading><paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Section 314 of title 37, United States Code, is amended to read as follows: <quotedContent> <section> <num value="314">“§314. </num><heading>Special pay or bonus: qualified enlisted members extending duty at designated locations overseas</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote><heading><inline class="smallCaps">Covered Members</inline>.—</heading><chapeau>This section applies with respect to an enlisted member of an armed force who—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>is entitled to basic pay;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>has a specialty that is designated by the Secretary concerned for the purposes of this section;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>has completed a tour of duty (as defined in accordance with regulations prescribed by the Secretary concerned) at a location outside the 48 contiguous States and the District of Columbia that is designated by the Secretary concerned for the purposes of this section; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>at the end of that tour of duty executes an agreement to extend that tour for a period of not less than one year.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Special Pay or Bonus Authorized</inline>.—</heading><chapeau>Upon the acceptance by the Secretary concerned of the agreement providing for an extension of the tour of duty of an enlisted member described in subsection (a), the member is entitled, at the election of the Secretary concerned, to either—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>special pay in monthly installments in an amount prescribed by the Secretary, but not to exceed $80 per month; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>an annual bonus in an amount prescribed by the Secretary, but not to exceed $2,000 per year.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Notification.</p></sidenote><heading><inline class="smallCaps">Selection and Payment of Special Pay or Bonus</inline>.—</heading><content>Not later than the date on which the Secretary concerned accepts an agreement described in subsection (a)(4) providing for the extension of a member’s tour of duty, the Secretary concerned shall notify the member regarding whether the member will receive special pay or a bonus under this section. The payment rate for the special pay or bonus shall be fixed at the time of the agreement and may not be changed during the period of the extended tour of duty. The Secretary concerned may pay a bonus under this section either in a lump sum or installments.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Repayment of Bonus</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>A member who, having entered into a written agreement to extend a tour of duty for a period under subsection (a), receives a bonus payment under subsection (b)(2) for a 12-month period covered by the agreement and ceases during that 12-month period to perform the agreed tour of duty shall refund to the United States the unearned portion of the bonus. The unearned portion of the bonus is the amount by which the amount of the bonus paid to the member exceeds the amount determined by multiplying the amount of the bonus paid by the percent determined by dividing 12 into the number of full months during which the member performed the duty in the 12-month period.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The Secretary concerned may waive the obligation of a member to reimburse the United States under paragraph (1) if the Secretary determines that conditions and circumstances warrant the waiver.<page identifier="/us/stat/111/1795">111 STAT. 1795</page></content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>An obligation to repay the United States imposed under paragraph (1) is for all purposes a debt owed to the United States.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="4">“(4) </num><content>A discharge in bankruptcy under title 11 that is entered less than five years after the termination of the agreement does not discharge the member signing the agreement from a debt arising under the agreement or under paragraph (1). This paragraph<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> applies to any case commenced under title 11 on or after the date of the enactment of the National Defense Authorization Act for Fiscal Year 1998.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Effect of Rest and Recuperative Absence</inline>.—</heading><content>A member who elects to receive one of the benefits specified in section 705(b) of title 10 as part of the extension of a tour of duty is not entitled to the special pay authorized by subsection (b)(1) for the period of the extension of duty for which the benefit under such section is provided.”.</content> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The item relating to section 314 in the table of sections at the beginning of chapter 5 of such title is amended to read as follows: <quotedContent> <referenceItem role="section"><designator>“314.</designator> <label>Special pay or bonus: qualified enlisted members extending duty at designated locations overseas</label></referenceItem> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Application of Amendment</inline>.—</heading><content>Section 314 of title 37,<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t37/s314">37 USC 314 note</ref>.</p></sidenote> United States Code, as amended by subsection (a), shall apply with respect to an agreement to extend a tour of duty as provided in such section executed on or after October 1, 1997.</content> </subsection> </section> <section> <num value="626">SEC. 626. </num><heading>INCREASE IN AMOUNT OF FAMILY SEPARATION ALLOWANCE.</heading> <content>Section 427 of title 37, United States Code (as amended by section 603), is further amended in subsection (a)(1) by striking out “$75” and inserting in lieu thereof “$100”.</content> </section> <section> <num value="627">SEC. 627. </num><heading>DEADLINE FOR PAYMENT OF READY RESERVE MUSTER DUTY ALLOWANCE.</heading> <chapeau>Section 433(c) of title 37, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in the first sentence, by striking out “and shall be” and all that follows through “is performed”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting after the first sentence the following new sentence: “The allowance may be paid to the member before, on, or after the date on which the muster duty is performed, but not later than 30 days after that date.”.</content></paragraph> </section> </subtitle> <subtitle> <num value="C">Subtitle C—</num><heading>Travel and Transportation Allowances</heading> <section> <num value="631">SEC. 631. </num><heading>TRAVEL AND TRANSPORTATION ALLOWANCES FOR DEPENDENTS BEFORE APPROVAL OF MEMBER’S COURT-MARTIAL SENTENCE.</heading> <content>Section 406(h)(2)(C) of title 37, United States Code, is amended by striking out the comma at the end of clause (iii) and all that follows through “title 10.” and inserting in lieu thereof a period.</content> </section> <section> <num value="632">SEC. 632. </num><heading>DISLOCATION ALLOWANCE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 407 of title 37, United States Code, is amended to read as follows:<page identifier="/us/stat/111/1796">111 STAT. 1796</page> <quotedContent> <section> <num value="407">“§ 407. </num><heading>Travel and transportation allowances: dislocation allowance</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote><heading><inline class="smallCaps">Eligibility for Primary Dislocation Allowance</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Under regulations prescribed by the Secretary concerned, a member of a uniformed service described in paragraph (2) is entitled to a primary dislocation allowance at the rate determined under subsection (c) for the member’s pay grade and dependency status.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><chapeau>A member of the uniformed services referred to in paragraph (1) is any of the following:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><chapeau>A member who makes a change of permanent station and the member’s dependents actually make an authorized move in connection with the change, including a move by the dependents—</chapeau> <clause class="indent2 fontsize10"><num value="i">“(i) </num><content>to join the member at the member’s duty station after an unaccompanied tour of duty when the member’s next tour of duty is an accompanied tour at the same station; and</content></clause> <clause class="indent2 fontsize10"><num value="ii">“(ii) </num><content>to a location designated by the member after an accompanied tour of duty when the member’s next tour of duty is an unaccompanied tour at the same duty station.</content></clause> </subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>A member whose dependents actually move pursuant to section 405a(a), 406(e), 406(h), or 554 of this title.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">“(C) </num><content>A member whose dependents actually move from their place of residence under circumstances described in section 406a of this title.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="D">“(D) </num><chapeau>A member who is without dependents and—</chapeau> <clause class="indent2 fontsize10"><num value="i">“(i) </num><content>actually moves to a new permanent station where the member is not assigned to quarters of the United States; or</content></clause> <clause class="indent2 fontsize10"><num value="ii">“(ii) </num><content>actually moves from a place of residence under circumstances described in section 406a of this title.</content></clause> </subparagraph> <subparagraph class="indent1 fontsize10"><num value="E">“(E) </num><content>A member who is ordered to move in connection with the closure or realignment of a military installation and, as a result, the member’s dependents actually move or, in the case of a member without dependents, the member actually moves.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>If a primary dislocation allowance is paid under this subsection to a member described in subparagraph (C) or (D)(ii) of paragraph (2), the member is not entitled to another dislocation allowance as a member described in subparagraph (A) or (E) of such paragraph in connection with the same move.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Secondary Allowance Authorized Under Certain Circumstances</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote><paragraph class="inline"><num value="1">(1) </num><content>Under regulations prescribed by the Secretary concerned, whenever a member is entitled to a primary dislocation allowance under subsection (a) as a member described in paragraph (2)(C) or (2)(D)(ii) of such subsection, the member is also entitled to a secondary dislocation allowance at the rate determined under subsection (c) for the member’s pay grade and dependency status if, subsequent to the member or the member’s dependents actually moving from their place of residence under circumstances described in section 406a of this title, the member or member’s dependents complete that move to a new location and then actually move from that new location to another location also under circumstances described in section 406a of this title.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>If a secondary dislocation allowance is paid under this subsection, the member is not entitled to a dislocation allowance <page identifier="/us/stat/111/1797">111 STAT. 1797</page>as a member described in paragraph (2)(A) or (2)(E) of subsection (a) in connection with those moves.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Dislocation Allowance Rates</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The amount of the dislocation allowance to be paid under this section to a member shall be based on the member’s pay grade and dependency status at the time the member becomes entitled to the allowance.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The initial rate for the dislocation allowance, for each pay grade and dependency status, shall be equal to the rate in effect for that pay grade and dependency status on December 31, 1997, as adjusted by the average percentage increase in the rates of basic pay for calendar year 1998. Effective on the same date that the monthly rates of basic pay for members are increased for a subsequent calendar year, the Secretary of Defense shall adjust the rates for the dislocation allowance for that calendar year by the percentage equal to the average percentage increase in the rates of basic pay for that calendar year.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Fiscal Year Limitation; Exceptions</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>A member is not entitled to more than one dislocation allowance under this section during a fiscal year unless—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>the Secretary concerned finds that the exigencies of the service require the member to make more than one change of permanent station during the fiscal year;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>the member is ordered to a service school as a change of permanent station;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">“(C) </num><content>the member’s dependents are covered by section 405a(a), 406(e), 406(h), or 554 of this title; or</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="D">“(D) </num><content>subparagraph (C) or (D)(ii) of subsection (a)(2) or subsection<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> (b) apply with respect to the member or the member’s dependents.</content></subparagraph> </paragraph> <subparagraph class="indent0 fontsize10"><num value="2">“(2) </num><content>This subsection does not apply in time of national emergency or in time of war.</content></subparagraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">First or Last Duty</inline>.—</heading><content>A member is not entitled to payment of a dislocation allowance under this section when the member is ordered from the member’s home to the member’s first duty station or from the member’s last duty station to the member’s home.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f) </num><heading><inline class="smallCaps">Rule of Construction</inline>.—</heading><content>For purposes of this section, a member whose dependents may not make an authorized move in connection with a change of permanent station is considered a member without dependents.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g) </num><heading><inline class="smallCaps">Advance Payment</inline>.—</heading><content>A dislocation allowance payable under this section may be paid in advance.”.</content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a)<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t37/s407">37 USC 407 note</ref>.</p></sidenote> shall take effect on January 1, 1998.</content> </subsection> </section> </subtitle> <subtitle> <num value="D">Subtitle D—</num><heading>Retired Pay, Survivor Benefits, and Related Matters</heading> <section> <num value="641">SEC. 641. </num><heading>ONE-YEAR OPPORTUNITY TO DISCONTINUE PARTICIPATION IN SURVIVOR BENEFIT PLAN.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Election To Discontinue Within One Year After Second Anniversary of Commencement of Payment of Retired Pay</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Subchapter II of chapter 73 of title 10, United States Code, is amended by inserting after section 1448 the following new section:<page identifier="/us/stat/111/1798">111 STAT. 1798</page> <quotedContent> <section> <num value="1448a">“§ 1448a. </num><heading>Election to discontinue participation: one-year opportunity after second anniversary of commencement of payment of retired pay</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Authority</inline>.—</heading><content>A participant in the Plan may, subject to the provisions of this section, elect to discontinue participation in the Plan at any time during the one-year period beginning on the second anniversary of the date on which payment of retired pay to the participant commences.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Concurrence of Spouse</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">Concurrence required</inline>.—</heading><content>A married participant may not (except as provided in paragraph (2)) make an election under subsection (a) without the concurrence of the participant’s spouse.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">Exceptions</inline>.—</heading><content>A participant may make such an election without the concurrence of the participant’s spouse by establishing to the satisfaction of the Secretary concerned that one of the conditions specified in section 1448(a)(3)(C) of this title exists.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><heading><inline class="smallCaps">Form of Concurrence</inline>.—</heading><content>The concurrence of a spouse under paragraph (1) shall be made in such written form and shall contain such information as may be required under regulations prescribed by the Secretary of Defense.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Limitation on Election when Former Spouse Coverage in Effect</inline>.—</heading><content>The limitation set forth in section 1450(f)(2) of this title applies to an election to discontinue participation in the Plan under subsection (a).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Withdrawal of Election To Discontinue</inline>.—</heading><content>Section 1448(b)(1)(D) of this title applies to an election under subsection (a).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Consequences of Discontinuation</inline>.—</heading><content>Section 1448(b)(1)(E) of this title applies to an election under subsection (a).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f) </num><heading><inline class="smallCaps">Notice to Affected Beneficiaries</inline>.—</heading><content>The Secretary concerned shall notify any former spouse or other natural person previously designated under section 1448(b) of this title of an election to discontinue participation under subsection (a).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g) </num><heading><inline class="smallCaps">Effective Date of Election</inline>.—</heading><content>An election under subsection (a) is effective as of the first day of the first calendar month following the month in which the election is received by the Secretary concerned.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="h">“(h) </num><heading><inline class="smallCaps">Inapplicability of Irrevocability Provisions</inline>.—</heading><content>Paragraphs (4)(B) and (5)(C) of section 1448(a) of this title do not apply to prevent an election under subsection (a).”.</content> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of such subchapter is amended by inserting after the item relating to section 1448 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“1448a.</designator> <label>Election to discontinue participation: one-year opportunity after second anniversary of commencement of payment of retired pay.’.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1448a">10 USC 1448a note</ref>.</p></sidenote><heading><inline class="smallCaps">Transition Provision for Current Participants</inline>.—</heading><content>Notwithstanding the limitation on the time for making an election under section 1448a of title 10, United States Code (as added by subsection (a)), that is specified in subsection (a) of such section, a participant in the Survivor Benefit Plan under subchapter II of chapter 73 of such title may make an election in accordance with that section within one year after the effective date of that section under subsection (c) if the second anniversary of the <page identifier="/us/stat/111/1799">111 STAT. 1799</page>commencement of payment of retired pay to the participant precedes that effective date.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>Section 1448a of title 10, United States<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1448a">10 USC 1448a note</ref>.</p></sidenote> Code, as added by subsection (a), shall take effect 180 days after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="642">SEC. 642. </num><heading>TIME IN WHICH CHANGE IN SURVIVOR BENEFIT COVERAGE FROM FORMER SPOUSE TO SPOUSE MAY BE MADE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Extension of Time for Change</inline>.—</heading><content>Section 1450(f)(1)(C) of title 10, United States Code, is amended by adding at the end the following new sentence: “Notwithstanding the preceding sentence, a change of election under this subsection to provide an annuity to a spouse instead of a former spouse may (subject to paragraph (2)) be made at any time after the person providing the annuity remarries without regard to the time limitation in section 1448(a)(5)(A) of this title.”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Applicability</inline>.—</heading><content>The amendment made by subsection (a)<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1450">10 USC 1450 note</ref>.</p></sidenote> shall apply with respect to marriages occurring before, on, or after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="643">SEC. 643. </num><heading>REVIEW OF FEDERAL FORMER SPOUSE PROTECTION LAWS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1408">10 USC 1408 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Review Required</inline>.—</heading><chapeau>The Secretary of Defense shall carry out a comprehensive review (including a comparison) of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the protections, benefits, and treatment afforded under Federal law to members and former members of the uniformed services and former spouses of such persons; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the protections, benefits, and treatment afforded under Federal law to employees and former employees of the Government and former spouses of such persons.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><chapeau>Military Personnel Matters To Be Reviewed.—In the case of members and former members of the uniformed services and former spouses of such persons, the review under subsection (a) shall include the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>All provisions of law (principally those originally enacted in the Uniformed Services Former Spouses’ Protection Act (title X of Public Law 97–252)) that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>establish, provide for the enforcement of, or otherwise protect interests of members and former members of the uniformed services and former spouses of such persons in retired or retainer pay of members and former members; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>provide other benefits for members and former members of the uniformed services and former spouses of such persons.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The experience of the uniformed services in administering those provisions of law, including the adequacy and effectiveness of the legal assistance provided by the Department of Defense in matters related to the Uniformed Services Former Spouses’ Protection Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The experience of members and former members of the uniformed sendees and former spouses of such persons in the administration of those provisions of law.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The experience of members and former members of the uniformed services and former spouses of such persons in the application of those provisions of law by State courts.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>The history of State statutes and State court interpretations of the Uniformed Services Former Spouses’ Protection Act and other provisions of Federal law described in paragraph <page identifier="/us/stat/111/1800">111 STAT. 1800</page>(1)(A) and the extent to which those interpretations follow those laws.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Civilian Personnel Matters To Be Reviewed</inline>.—</heading><chapeau>In the case of former spouses of employees and former employees of the Government, the review under subsection (a) shall include the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>All provisions of law that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>establish, provide for the enforcement of, or otherwise protect interests of employees and former employees of the Government and former spouses of such persons in annuities of employees and former employees under Federal employees’ retirement systems; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>provide other benefits for employees and former employees of the Government and former spouses of such persons.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The experience of the Office of Personnel Management and other agencies of the Government in administering those provisions of law.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The experience of employees and former employees of the Government and former spouses of such persons in the administration of those provisions of law.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The experience of employees and former employees of the Government and former spouses of such persons in the application of those provisions of law by State courts.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Sampling Authorized</inline>.—</heading><content>The Secretary may use sampling in carrying out the review under this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than September 30, 1999, the Secretary shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report on the results of the review under subsection (a). The report shall include any recommendations for legislation that the Secretary considers appropriate.</content> </subsection> </section> <section> <num value="644">SEC. 644. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1448">10 USC 1448 note</ref>.</p></sidenote> <heading>ANNUITIES FOR CERTAIN MILITARY SURVIVING SPOUSES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Survivor Annuity</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>The Secretary concerned shall pay an annuity to the qualified surviving spouse of each member of the uniformed services who—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>died before March 21, 1974, and was entitled to retired or retainer pay on the date of death; or</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>was a member of a reserve component of the Armed Forces during the period beginning on September 21, 1972, and ending on October 1, 1978, and at the time of his death would have been entitled to retired pay under chapter 67 of title 10, United States Code (as in effect before December 1, 1994), but for the fact that he was under 60 years of age.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>A qualified surviving spouse for purposes of this section is a surviving spouse who has not remarried and who is not eligible for an annuity under section 4 of Public Law 92–425 (10 U.S.C. 1448 note).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Amount of Annuity</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>An annuity under this section shall be paid at the rate of $165 per month, as adjusted from time to time under paragraph (3).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>An annuity paid to a surviving spouse under this section shall be reduced by the amount of any dependency and indemnity compensation (DIC) to which the surviving spouse is entitled under section 1311(a) of title 38, United States Code.<page identifier="/us/stat/111/1801">111 STAT. 1801</page></content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><content>Whenever after the date of the enactment of this Act retired or retainer pay is increased under section 1401a(b)(2) of title 10, United States Code, each annuity that is payable under this section shall be increased at the same time and by the same total percent. The amount of the increase shall be based on the amount of the monthly annuity payable before any reduction under this section.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Application Required</inline>.—</heading><content>No benefit shall be paid to any person under this section unless an application for such benefit is filed with the Secretary concerned by or on behalf of such person.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The terms “uniformed services” and “Secretary concerned” have the meanings given such terms in section 101 of title 37, United States Code.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The term “surviving spouse” has the meaning given the terms “widow” and “widower” in paragraphs (3) and (4) of section 1447 of title 10, United States Code.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Prospective Applicability</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Annuities under this section shall be paid for months beginning after the month in which this Act is enacted.</content></paragraph> <paragraph class="inline"><num value="2">(2) </num><content>No benefit shall accrue to any person by reason of the enactment of this section for any period before the first month that begins after the month in which this Act is enacted.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Expiration of Authority</inline>.—</heading><content>The authority to pay annuities under this section shall expire on September 30, 2001.</content> </subsection> </section> <section> <num value="645">SEC. 645. </num><heading>ADMINISTRATION OF BENEFITS FOR SO-CALLED MINIMUM INCOME WIDOWS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Payments To Be Made by Secretary of Veterans Affairs</inline>.—</heading><chapeau>Section 653(d) of the National Defense Authorization Act, Fiscal Year 1989 (10 U.S.C. 1448 note) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>(1)</quotedText>” before “An annuity” the first place it appears; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>Payment of annuities under this section shall be made by the Secretary of Veterans Affairs. In making such payments, the Secretary shall combine the payment under this section with the payment of any amount due the same person under section 4 of Public Law 92–425 (10 U.S.C. 1448 note), as provided in subsection (e)(1) of that section. The Secretary concerned shall transfer amounts for payments under this section to the Secretary of Veterans Affairs in the same manner as is provided under subsection (e)(2) of section 4 of Public Law 92–425 for payments under that section.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Combination With Other Benefits</inline>.—</heading><chapeau>Section 4(e)(1) of Public Law 92–425 (10 U.S.C. 1448 note) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by inserting after the first sentence the following new sentence: “In making such payments, the Secretary shall combine with the payment under this section payment of any amount due the same person under section 653(d) of the National Defense Authorization Act, Fiscal Year 1989 (10 U.S.C. 1448 note).”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting “<quotedText>(and, if applicable, under section 653(d) of the National Defense Authorization Act, Fiscal Year 1989)</quotedText>” after “under this section”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1448">10 USC 1448 note</ref>.</p></sidenote> take effect on the first day of the first month beginning after the date of the enactment of this Act and shall apply with respect <page identifier="/us/stat/111/1802">111 STAT. 1802</page>to payments of benefits for months beginning on or after that date, except that the Secretary of Veterans Affairs may provide, if necessary for administrative implementation, that such amendments shall apply beginning with a later month, not later than the first month beginning more than 180 days after the date of the enactment of this Act.</content> </subsection> </section> </subtitle> <subtitle> <num value="E">Subtitle E—</num><heading>Other Matters</heading> <section> <num value="651">SEC. 651. </num><heading>LOAN REPAYMENT PROGRAM FOR COMMISSIONED OFFICERS IN CERTAIN HEALTH PROFESSIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>Chapter 109 of title 10, United States Code, is amended by adding at the end the following new section: <quotedContent> <section> <num value="2173">“§ 2173. </num><heading>Education loan repayment program: commissioned officers in specified health professions</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Authority To Repay Education Loans</inline>.—</heading><chapeau>For the purpose of maintaining adequate numbers of commissioned officers of the armed forces on active duty who are qualified in the various health professions, the Secretary of a military department may repay, in the case of a person described in subsection (b), a loan that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>was used by the person to finance education regarding a health profession; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>was obtained from a governmental entity, private financial institution, school, or other authorized entity.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Eligible Persons</inline>.—</heading><chapeau>To be eligible to obtain a loan repayment under this section, a person must—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>satisfy one of the requirements specified in subsection (c);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>be fully qualified for, or hold, an appointment as a commissioned officer in one of the health professions; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>sign a written agreement to serve on active duty, or, if on active duty, to remain on active duty for a period in addition to any other incurred active duty obligation.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><chapeau>Academic and Professional Requirements—One of the following academic requirements must be satisfied for purposes of determining the eligibility of a person for a loan repayment under this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>The person is fully qualified in a health care profession that the Secretary of the military department concerned has determined to be necessary to meet identified skill shortages.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The person is enrolled as a full-time student in the final year of a course of study at an accredited educational institution leading to a degree in a health profession other than medicine or osteopathic medicine.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>The person is enrolled in the final year of an approved graduate program leading to specialty qualification in medicine, dentistry, osteopathic medicine, or other health profession.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Certain Persons Ineligible</inline>.—</heading><content>Participants of the Armed Forces Health Professions Scholarship and Financial Assistance program under subchapter I of chapter 105 of this title and students of the Uniformed Services University of the Health Sciences established under section 2112 of this title are not eligible for the repayment of an education loan under this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Loan Repayments</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>Subject to the limits established by paragraph (2), a loan repayment under this section may consist <page identifier="/us/stat/111/1803">111 STAT. 1803</page>of payment of the principal, interest, and related expenses of a loan obtained by a person described in subsection (b) for—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>all educational expenses, comparable to all educational expenses recognized under section 2127(a) of this title for participants in the Armed Forces Health Professions Scholarship and Financial Assistance program; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>reasonable living expenses, not to exceed expenses comparable to the stipend paid under section 2121(d) of this title for participants in the Armed Forces Health Professions Scholarship and Financial Assistance program.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>For each year of obligated service that a person agrees to serve in an agreement described in subsection (b)(3), the Secretary of the military department concerned may pay not more than $22,000 on behalf of the person. This maximum amount shall<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> be increased annually by the Secretary of Defense effective October 1 of each year by the percentage equal to the percent increase in the average annual cost of educational expenses and stipend costs of a single scholarship under the Armed Forces Health Professions Scholarship and Financial Assistance program. The total amount that may be repaid on behalf of any person may not exceed an amount determined on the basis of a four-year active duty service obligation.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f) </num><heading><inline class="smallCaps">Active Duty Service Obligation</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>A person entering into an agreement described in subsection (b)(3) incurs an active duty service obligation. The length of this obligation shall be determined<sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote> under regulations prescribed by the Secretary of Defense, but those regulations may not provide for a period of obligation of less than one year for each maximum annual amount, or portion thereof, paid on behalf of the person for qualified loans.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>For persons on active duty before entering into the agreement, the active duty service obligation shall be served consecutively to any other obligation incurred under the agreement.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g) </num><heading><inline class="smallCaps">Effect of Failure To Complete Obligation</inline>.—</heading><content>A commissioned officer who is relieved of the officer’s active duty obligation under this section before the completion of that obligation may be given, with or without the consent of the officer, any alternative obligation comparable to any of the alternative obligations authorized by section 2123(e) of this title for participants in the Armed Forces Health Professions Scholarship and Financial Assistance program.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="h">“(h) </num><heading><inline class="smallCaps">Regulations</inline>.—</heading><content>The Secretary of Defense shall prescribe regulations to carry out this section, including standards for qualified loans and authorized payees and other terms and conditions for the making of loan repayments.”.</content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections at the beginning of such chapter is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“2173.</designator> <label>Education loan repayment program: commissioned officers in specified health professions.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="652">SEC. 652. </num><heading>CONFORMANCE OF NOAA COMMISSIONED OFFICERS SEPARATION PAY TO SEPARATION PAY FOR MEMBERS OF OTHER UNIFORMED SERVICES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Elimination of Limitations on Amount of Separation Pay</inline>.—</heading><chapeau>Section 9 of the Coast and Geodetic Survey Commissioned Officers’ Act of 1948 (33 U.S.C. 853h) is amended—<page identifier="/us/stat/111/1804">111 STAT. 1804</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subsection (b)(1), by striking out “, or $30,000, whichever is less”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in subsection (b)(2), by striking out “, but in no event more them $15,000”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>in subsection (d), by striking out “(1)”, and by striking out paragraph (2).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Waiver of Recoupment of Amounts Withheld for Tax Purposes From Certain Separation Pay</inline>.—</heading><content>Section 9(e)(2) of the Coast and Geodetic Survey Commissioned Officers’ Act of 1948 (33 U.S.C. 853h(e)(2)) is amended in the first sentence by inserting before the period at the end the following: “, less the amount of Federal income tax withheld from such pay (such withholding being at the flat withholding rate for Federal income tax withholding, as in effect pursuant to regulations prescribed under chapter 24 of the Internal Revenue Code of 1986)”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t33/s853h"><ref href="/us/usc/t33/s853h">33 USC 853h note</ref></ref>.</p></sidenote><heading><inline class="smallCaps">Effective Date and Application</inline>.—</heading><content>The amendments made by this section shall take effect as of October 1, 1997, and shall apply to payments of separation pay that are made after September 30, 1997.</content> </subsection> </section> <section> <num value="653">SEC. 653. </num><heading>ELIGIBILITY OF PUBLIC HEALTH SERVICE OFFICERS AND NOAA COMMISSIONED CORPS OFFICERS FOR REIMBURSEMENT OF ADOPTION EXPENSES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Public Health Service</inline>.—</heading><content>Section 221(a) of the Public Health Service Act (42 U.S.C. 213a(a)) is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="16">“(16) </num><content>Section 1052, Reimbursement for adoption expenses.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">National Oceanic and Atmospheric Administration</inline>.—</heading><content>Section 3(a) of the Act of August 10, 1956 (33 U.S.C. 857a(a)), is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="16">“(16) </num><content>Section 1052, Reimbursement for adoption expenses.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t33/s857a">33 USC 857a note</ref>.</p></sidenote><heading><inline class="smallCaps">Prospective Applicability</inline>.—</heading><content>The amendments made by this section shall apply only to adoptions that are completed on or after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="654">SEC. 654. </num><heading>PAYMENT OF BACK QUARTERS AND SUBSISTENCE ALLOWANCES TO WORLD WAR II VETERANS WHO SERVED AS GUERRILLA FIGHTERS IN THE PHILIPPINES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>The Secretary of the military department concerned shall pay, upon request, to an individual described in subsection (b) the amount determined with respect to that individual under subsection (c).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Covered Individuals</inline>.—</heading><chapeau>A payment under subsection (a) shall be made to any individual who as a member of the Armed Forces during World War II—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>was captured within the territory of the Philippines by Japanese forces;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>escaped from captivity; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>served as a guerrilla fighter in the Philippines during the period from January 1942 through February 1945.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Amount To Be Paid</inline>.—</heading><content>The amount of a payment under subsection (a) shall be the amount of quarters and subsistence allowance which accrued to an individual described in subsection (b) during the period specified in paragraph (3) of subsection (b) and which was not paid to that individual. For the purposes of this subsection, the Secretary of War shall be deemed to have determined that conditions in the Philippines during the specified period justified payment under applicable regulations of quarters <page identifier="/us/stat/111/1805">111 STAT. 1805</page>and subsistence allowances at the maximum special rate for duty where emergency conditions existed. The Secretary shall apply interest compounded at the three-month Treasury bill rate.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Payment to Survivors</inline>.—</heading><content>In the case of any individual described in subsection (b) who is deceased, payment under this section with respect to that individual shall be made to that individual’s nearest surviving relative, as determined by the Secretary concerned.</content> </subsection> </section> <section> <num value="655">SEC. 655. </num><heading>SUBSISTENCE OF MEMBERS OF THE ARMED FORCES ABOVE THE POVERTY LEVEL.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Study and Report</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>The Secretary of Defense shall conduct a study of members of the Armed Forces and their families who subsist at, near, or below the poverty level. The study shall include the following:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>An analysis of potential solutions for ensuring that members of the Armed Forces and their families do not have to subsist at, near, or below the poverty level, including potential solutions involving changes in the system of allowances for members.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><chapeau>Identification of the military populations most likely to need income support under Federal Government programs, including—</chapeau> <clause class="indent2 fontsize10"><num value="i">(i) </num><content>the populations living in areas of the United States where housing costs are notably high;</content></clause> <clause class="indent2 fontsize10"><num value="ii">(ii) </num><content>the populations living outside the United States; and</content></clause> <clause class="indent2 fontsize10"><num value="iii">(iii) </num><content>the number of persons in each identified population.</content></clause> </subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><content>The desirability of increasing rates of basic pay and allowances for members over a defined period of years by a range of percentages that provides for higher percentage increases for lower ranking members than for higher ranking members.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report containing the results of the study and such recommendations as the Secretary considers to be appropriate.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Implementation of Department of Defense Special Supplemental Food Program for Personnel Outside the United States</inline>.—</heading><paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Subsection (b) of section 1060a of title 10, United States Code, is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Federal Payments and Commodities</inline>.—</heading><content>For the purpose of obtaining Federal payments and commodities in order to carry out the program referred to in subsection (a), the Secretary of Agriculture shall make available to the Secretary of Defense the same payments and commodities as are made for the special supplemental food program in the United States under section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786). The Secretary of Defense may use funds available for the Department of Defense to carry out the program under subsection (a).”.</content> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Not later than 90 days after the date of the enactment<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1060a">10 USC 1060a note</ref>.</p></sidenote> of this Act, the Secretary of Defense shall submit to Congress a report regarding the intentions of the Secretary regarding implementation of the program authorized under section 1060a of title 10, United States Code, including any plans to implement the program.<page identifier="/us/stat/111/1806">111 STAT. 1806</page></content></paragraph> </subsection> </section> </subtitle> <num value="VII">TITLE VII—</num><heading>HEALTH CARE PROVISIONS</heading> <toc> <referenceItem role="subtitle"><designator>Subtitle A—</designator><label>Health Care Services</label></referenceItem> <referenceItem role="section"><designator>Sec. 701.</designator> <label>Expansion of retiree dental insurance plan to include surviving spouse and child dependents of certain deceased members.</label></referenceItem> <referenceItem role="section"><designator>Sec. 702.</designator> <label>Provision of prosthetic devices to covered beneficiaries.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle B—</designator><label>TRICARE Program</label></referenceItem> <referenceItem role="section"><designator>Sec. 711.</designator> <label>Addition of definition of TRICARE program to title 10.</label></referenceItem> <referenceItem role="section"><designator>Sec. 712.</designator> <label>Plan for expansion of managed care option of TRICARE program.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle C—</designator><label>Uniformed Services Treatment Facilities</label></referenceItem> <referenceItem role="section"><designator>Sec. 721.</designator> <label>Implementation of designated provider agreements for Uniformed Services Treatment Facilities.</label></referenceItem> <referenceItem role="section"><designator>Sec. 722.</designator> <label>Continued acquisition of reduced-cost drugs.</label></referenceItem> <referenceItem role="section"><designator>Sec. 723.</designator> <label>Limitation on total payments.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle D—</designator><label>Other Changes to Existing Laws Regarding Health Care Management</label></referenceItem> <referenceItem role="section"><designator>Sec. 731.</designator> <label>Improvements in health care coverage and access for members assigned to certain duty locations far from sources of care.</label></referenceItem> <referenceItem role="section"><designator>Sec. 732.</designator> <label>Waiver or reduction of copayments under overseas dental program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 733.</designator> <label>Premium collection requirements for medical and dental insurance programs; extension of deadline for implementation of dental insurance program for military retirees.</label></referenceItem> <referenceItem role="section"><designator>Sec. 734.</designator> <label>Dental insurance plan coverage for retirees of the Public Health Service and NOAA.</label></referenceItem> <referenceItem role="section"><designator>Sec. 735.</designator> <label>Consistency between CHAMPUS and Medicare in payment rates for services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 736.</designator> <label>Use of personal services contracts for provision of health care services and legal protection for providers.</label></referenceItem> <referenceItem role="section"><designator>Sec. 737.</designator> <label>Portability of State licenses for Department of Defense health care professionals.</label></referenceItem> <referenceItem role="section"><designator>Sec. 738.</designator> <label>Standard form and requirements regarding claims for payment for services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 739.</designator> <label>Chiropractic health care demonstration program.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle E—</designator><label>Other Matters</label></referenceItem> <referenceItem role="section"><designator>Sec. 741.</designator> <label>Continued admission of civilians as students in physician assistant training program of Army Medical Department.</label></referenceItem> <referenceItem role="section"><designator>Sec. 742.</designator> <label>Payment for emergency health care overseas for military and civilian personnel of the On-Site Inspection Agency.</label></referenceItem> <referenceItem role="section"><designator>Sec. 743.</designator> <label>Authority for agreement for use of medical resource facility, Alamogordo, New Mexico.</label></referenceItem> <referenceItem role="section"><designator>Sec. 744.</designator> <label>Disclosures of cautionary information on prescription medications.</label></referenceItem> <referenceItem role="section"><designator>Sec. 745.</designator> <label>Competitive procurement of certain ophthalmic services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 746.</designator> <label>Comptroller General study of adequacy and effect of maximum allowable charges for physicians under CHAMPUS.</label></referenceItem> <referenceItem role="section"><designator>Sec. 747.</designator> <label>Comptroller General study of Department of Defense pharmacy programs.</label></referenceItem> <referenceItem role="section"><designator>Sec. 748.</designator> <label>Comptroller General study of Navy graduate medical education program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 749.</designator> <label>Study of expansion of pharmaceuticals by mail program to include additional Medicare-eligible covered beneficiaries.</label></referenceItem> <referenceItem role="section"><designator>Sec. 750.</designator> <label>Comptroller General study of requirement for military medical facilities in National Capital Region.</label></referenceItem> <referenceItem role="section"><designator>Sec. 751.</designator> <label>Report on policies and programs to promote healthy lifestyles for members of the Armed Forces and their dependents.</label></referenceItem> <referenceItem role="section"><designator>Sec. 752.</designator> <label>Sense of Congress regarding quality health care for retirees.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle F—</designator><label>Persian Gulf Illness</label></referenceItem> <referenceItem role="section"><designator>Sec. 761.</designator> <label>Definitions.</label></referenceItem> <referenceItem role="section"><designator>Sec. 762.</designator> <label>Plan for health care services for Persian Gulf veterans.</label></referenceItem> <referenceItem role="section"><designator>Sec. 763.</designator> <label>Comptroller General study of revised disability criteria for physical evaluation boards.</label></referenceItem> <referenceItem role="section"><designator>Sec. 764.</designator> <label>Medical care for certain reserves who served in Southwest Asia during the Persian Gulf War.</label></referenceItem> <referenceItem role="section"><designator>Sec. 765.</designator> <label>Improved medical tracking system for members deployed overseas in contingency or combat operations.<page identifier="/us/stat/111/1807">111 STAT. 1807</page></label></referenceItem> <referenceItem role="section"><designator>Sec. 766.</designator> <label>Notice of use of investigational new drugs or drugs unapproved for their applied use.</label></referenceItem> <referenceItem role="section"><designator>Sec. 767.</designator> <label>Report on plans to track location of members in a theater of operations.</label></referenceItem> <referenceItem role="section"><designator>Sec. 768.</designator> <label>Sense of Congress regarding the deployment of specialized units for detecting and monitoring chemical, biological, and similar hazards in a theater of operations.</label></referenceItem> <referenceItem role="section"><designator>Sec. 769.</designator> <label>Report on effectiveness of research efforts regarding Gulf War illnesses.</label></referenceItem> <referenceItem role="section"><designator>Sec. 770.</designator> <label>Persian Gulf illness clinical trials program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 771.</designator> <label>Sense of Congress concerning Gulf War illness.</label></referenceItem> </toc> <subtitle> <num value="A">Subtitle A—</num><heading>Health Care Services</heading> <section> <num value="701">SEC. 701. </num><heading>EXPANSION OF RETIREE DENTAL INSURANCE PLAN TO INCLUDE SURVIVING SPOUSE AND CHILD DEPENDENTS OF CERTAIN DECEASED MEMBERS.</heading> <chapeau>Section 1076c(b)(4) of title 10, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>in subparagraph (A)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking out “dies” and inserting in lieu thereof “died”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking out “or” at the end of the subparagraph;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking out the period at the end of subparagraph (B) and inserting in lieu thereof “; or”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>who died while on active duty for a period of more than 30 days and whose eligible dependents are not eligible, or no longer eligible, for dental benefits under section 1076a of this title pursuant to subsection (i)(2) of such section.”.</content></subparagraph> </quotedContent> </content></paragraph> </section> <section> <num value="702">SEC. 702. </num><heading>PROVISION OF PROSTHETIC DEVICES TO COVERED BENEFICIARIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Inclusion Among Authorized Care</inline>.—</heading><content>Subsection (a) of section 1077 of title 10, United States Code, is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="15">“(15) </num><content>Prosthetic devices, as determined by the Secretary of Defense to be necessary because of significant conditions resulting from trauma, congenital anomalies, or disease.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>Subsection (b) of such section is amended by striking out paragraph (2) and inserting in lieu thereof the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>Hearing aids, orthopedic footwear, and spectacles, except that, outside of the United States and at stations inside the United States where adequate civilian facilities are unavailable, such items may be sold to dependents at cost to the United States.”.</content></paragraph> </quotedContent> </content></subsection> </section> <section> <num value="703">SEC. 703. </num><heading>STUDY CONCERNING THE PROVISION OF COMPARATIVE INFORMATION.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1073">10 USC 1073 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Study</inline>.—</heading><content>The Secretary of Defense shall conduct a study concerning the provision of the information described in subsection (b) to beneficiaries under the TRICARE program established under the authority of chapter 55 of title 10, United States Code, and prepare and submit to Congress a report concerning such study.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Provision of Comparative Information</inline>—</heading><chapeau>Information described in this subsection, with respect to a managed care entity that contracts with the Secretary of Defense to provide medical assistance under the program described in subsection (a), shall include the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>The benefits covered by the entity involved, including—<page identifier="/us/stat/111/1808">111 STAT. 1808</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>covered items and services beyond those provided under a traditional fee-for-service program;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>any beneficiary cost sharing; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>any maximum limitations on out-of-pocket expenses.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The net monthly premium, if any, under the entity.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The service area of the entity.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><chapeau>To the extent available, quality and performance indicators for the benefits under the entity (and how they compare to such indicators under the traditional fee-for-service programs in the area involved), including—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>disenrollment rates for enrollees electing to receive benefits through the entity for the previous two years (excluding disenrollment due to death or moving outside the service area of the entity);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>information on enrollee satisfaction;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>information on health process and outcomes;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>grievance procedures;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E) </num><content>the extent to which an enrollee may select the health care provider of their choice, including health care providers within the network of the entity and out-of-network health care providers (if the entity covers out-of-network items and services); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F) </num><content>an indication of enrollee exposure to balance billing and the restrictions on coverage of items and services provided to such enrollee by an out-of-network health care provider.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Whether the entity offers optional supplemental benefits and the terms and conditions (including premiums) for such coverage.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>An overall summary description as to the method of compensation of participating physicians.</content></paragraph> </subsection> </section> </subtitle> <subtitle> <num value="B">Subtitle B—</num><heading>TRICARE Program</heading> <section> <num value="711">SEC. 711. </num><heading>ADDITION OF DEFINITION OF TRICARE PROGRAM TO TITLE 10.</heading> <content>Section 1072 of title 10, United States Code, is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="7">“(7) </num><content>The term ‘TRICARE program’ means the managed health care program that is established by the Department of Defense under the authority of this chapter, principally section 1097 of this title, and includes the competitive selection of contractors to financially underwrite the delivery of health care services under the Civilian Health and Medical Program of the Uniformed Services.”.</content></paragraph> </quotedContent> </content></section> <section> <num value="712">SEC. 712. </num><heading>PLAN FOR EXPANSION OF MANAGED CARE OPTION OF TRICARE PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Plan For Expansion of TRICARE Prime</inline>.—</heading><chapeau>The Secretary of Defense shall prepare a plan for the expansion of the managed care option of the TRICARE Program, known as TRICARE Prime, into areas of the United States located outside of the catchment areas of medical treatment facilities of the uniformed services, but in which the managed care option is a cost-effective alternative because of—<page identifier="/us/stat/111/1809">111 STAT. 1809</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the significant number of members of the uniformed services and covered beneficiaries under chapter 55 of title 10, United States Code (including retired members of the Armed Forces and their dependents), who reside in the areas; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the presence in the areas of sufficient nonmilitary health care provider networks.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Alternatives</inline>.—</heading><chapeau>As an alternative to expansion of TRICARE Prime to areas of the United States in which there are few or no nonmilitary health care provider networks, the Secretary shall include in the plan required under subsection (a) an evaluation of the feasibility and cost-effectiveness of providing a member of the Armed Forces on active duty who is stationed in such an area, or whose dependents reside in such an area, with one or both of the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>A monetary stipend to assist the member in obtaining health care services for the member or the member’s dependents.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>A reduction in the cost-sharing requirements applicable to the TRICARE program options otherwise available to the member to match the reduced cost-sharing responsibilities of the managed care option of the TRICARE program.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Submission of Plan</inline>.—</heading><content>Not later than March 1, 1998, the Secretary shall submit to Congress the plan required under subsection (a).</content> </subsection> </section> </subtitle> <subtitle> <num value="C">Subtitle C—</num><heading>Uniformed Services Treatment Facilities</heading> <section> <num value="721">SEC. 721. </num><heading>IMPLEMENTATION OF DESIGNATED PROVIDER AGREEMENTS FOR UNIFORMED SERVICES TREATMENT FACILITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Commencement of Health Care Services Under Agreement</inline>.—</heading><chapeau>Subsection (c) of section 722 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201, 10 U.S.C. 1073 note) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting “<quotedText>(1)</quotedText>” before “Unless”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The Secretary may modify the effective date established under paragraph (1) for an agreement to permit a transition period of not more than six months between the date on which the agreement is executed by the parties and the date on which the designated provider commences the delivery of health care services under the agreement.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Temporary Continuation of Existing Participation Agreements</inline>.—</heading><content>Subsection (d) of such section is amended by inserting before the period at the end the following: “, including any transitional period provided by the Secretary under paragraph (2) of such subsection”.</content> </subsection> </section> <section> <num value="722">SEC. 722. </num><heading>CONTINUED ACQUISITION OF REDUCED-COST DRUGS.</heading> <content>Section 722 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 10 U.S.C. 1073 note) is amended by adding at the end the following new subsection:<page identifier="/us/stat/111/1810">111 STAT. 1810</page> <quotedContent> <subsection class="indent0 fontsize10"> <num value="g">“(g) </num><heading><inline class="smallCaps">Continued Acquisition of Reduced-Cost Drugs</inline>.—</heading><content>A designated provider shall be treated as part of the Department of Defense for purposes of section 8126 of title 38, United States Code, in connection with the provision by the designated provider of health care services to covered beneficiaries pursuant to the participation agreement of the designated provider under section 718(c) of the National Defense Authorization Act for Fiscal Year 1991 (Public Law 101–510; 42 U.S.C. 248c note) or pursuant to the agreement entered into under subsection (b).”.</content> </subsection> </quotedContent> </content></section> <section> <num value="723">SEC. 723. </num><heading>LIMITATION ON TOTAL PAYMENTS.</heading> <content>Section 726(b) of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 10 U.S.C. 1073 note) is amended by adding at the end the following new sentence: “In establishing the ceiling rate for enrollees with the designated providers who are also eligible for the Civilian Health and Medical Program of the Uniformed Services, the Secretary of Defense shall take into account the health status of the enrollees.”.</content> </section> </subtitle> <subtitle> <num value="D">Subtitle D—</num><heading>Other Changes to Existing Laws Regarding Health Care Management</heading> <section> <num value="731">SEC. 731. </num><heading>IMPROVEMENTS IN HEALTH CARE COVERAGE AND ACCESS FOR MEMBERS ASSIGNED TO CERTAIN DUTY LOCATIONS FAR FROM SOURCES OF CARE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Supplemental Care Program</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>Section 1074(c) of title 10, United States Code, is amended—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>by inserting “<quotedText>(1)</quotedText>” after “(c)”; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>by adding at the end the following new paragraphs: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>Subject to such exceptions as the Secretary of Defense considers necessary, coverage for medical care for members of the armed forces under this subsection, and standards with respect to timely access to such care, shall be comparable to coverage for medical care and standards for timely access to such care under the managed care option of the TRICARE program known as TRICARE Prime.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Contracts.</p></sidenote><content>The Secretary of Defense shall enter into arrangements with contractors under the TRICARE program or with other appropriate contractors for the timely and efficient processing of claims under this subsection.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><subparagraph class="inline"><num value="A">(A) </num><content>The Secretary of Defense may not require a member of the armed forces described in subparagraph (B) to receive routine primary medical care at a military medical treatment facility.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><chapeau>A member referred to in subparagraph (A) is a member of the armed forces on active duty who is entitled to medical care under this subsection and who—</chapeau> <clause class="indent2 fontsize10"><num value="i">“(i) </num><content>receives a duty assignment described in subparagraph (C); and</content></clause> <clause class="indent2 fontsize10"><num value="ii">“(ii) </num><content>pursuant to the assignment of such duty, resides at a location that is more than 50 miles, or approximately one hour of driving time, from the nearest military medical treatment facility adequate to provide the needed care.</content></clause> </subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">“(C) </num><chapeau>A duty assignment referred to in subparagraph (B) means any of the following:</chapeau> <clause class="indent2 fontsize10"><num value="i">“(i) </num><content>Permanent duty as a recruiter.<page identifier="/us/stat/111/1811">111 STAT. 1811</page></content></clause> <clause class="indent2 fontsize10"><num value="ii">“(ii) </num><content>Permanent duty at an educational institution to instruct, administer a program of instruction, or provide administrative services in support of a program of instruction for the Reserve Officers’ Training Corps.</content></clause> <clause class="indent2 fontsize10"><num value="iii">“(iii) </num><content>Permanent duty as a full-time adviser to a unit of a reserve component.</content></clause> <clause class="indent2 fontsize10"><num value="iv">“(iv) </num><content>Any other permanent duty designated by the Secretary concerned for purposes of this paragraph.”.</content></clause> </subparagraph> </paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>The amendments made by paragraph (1) shall apply with<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1074">10 USC 1074 note</ref>.</p></sidenote> respect to coverage of medical care for, and the provision of such care to, a member of the Armed Forces under section 1074(c) of title 10, United States Code, on and after the later of the following:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>April 1, 1998.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>The date on which the TRICARE program is in place in the service area of the member.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Temporary Authority for Managed Care Expansion to Members on Active Duty at Certain Remote Locations</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1074">10 USC 1074 note</ref>.</p></sidenote><paragraph class="inline"><num value="1">(1) </num><content>A member of the Armed Forces described in subsection (c) is entitled to receive care under the Civilian Health and Medical Program of the Uniformed Services. In connection with such care, the Secretary of Defense shall waive the obligation of the member to pay a deductible, copayment, or annual fee that would otherwise be applicable under that program for care provided to the members under the program.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>A member who is entitled under paragraph (1) to receive health care services under CHAMPUS shall receive such care from a network provider under the TRICARE program if such a provider is available in the service area of the member.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><chapeau>Paragraph (1) shall take effect on the date of the enactment<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8">Expiration date.</p></sidenote>of this Act and shall expire with respect to a member upon the later of the following:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>The date that is one year after the date of the enactment of this Act.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>The date on which the amendments made by subsection (a) apply with respect to the coverage of medical care for, and provision of such care to, the member.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Eligible Members</inline>.—</heading><chapeau>A member referred to in subsection<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1074">10 USC 1074 note</ref>.</p></sidenote> (b) is a member of the Armed Forces on active duty who—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>receives a duty assignment described in subsection (d); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>pursuant to the assignment of such duty, resides at a location that is more than 50 miles, or approximately one hour of driving time, from—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the nearest health care facility of the uniformed services adequate to provide the needed care under chapter 55 of title 10, United States Code; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the nearest source of the needed care that is available to the member under the TRICARE Prime plan.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Duty Assignments Covered</inline>.—</heading><chapeau>A duty assignment referred<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1074">10 USC 1074 note</ref>.</p></sidenote> to in subsection (c)(1) means any of the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Permanent duty as a recruiter.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Permanent duty at an educational institution to instruct, administer a program of instruction, or provide administrative services in support of a program of instruction for the Reserve Officers’ Training Corps.<page identifier="/us/stat/111/1812">111 STAT. 1812</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Permanent duty as a full-time adviser to a unit of a reserve component of the Armed Forces.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Any other permanent duty designated by the Secretary concerned for purposes of this subsection.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1074">10 USC 1074 note</ref>.</p></sidenote><heading><inline class="smallCaps">Payment of Costs</inline>.—</heading><content>Deductibles, copayments, and annual fees not payable by a member by reason of a waiver granted under the regulations prescribed pursuant to subsection (b) shall be paid out of funds available to the Department of Defense for the Defense Health Program.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1074">10 USC 1074 note</ref>.</p></sidenote><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>In this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The term “TRICARE program” has the meaning given that term in section 1072(7) of title 10, United States Code.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The term “TRICARE Prime plan” means a plan under the TRICARE program that provides for the voluntary enrollment of persons for the receipt of health care services to be furnished in a manner similar to the manner in which health care services are furnished by health maintenance organizations.</content></paragraph> </subsection> </section> <section> <num value="732">SEC. 732. </num><heading>WAIVER OR REDUCTION OF COPAYMENTS UNDER OVERSEAS DENTAL PROGRAM.</heading> <chapeau>Section 1076a(h) of title 10, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in the first sentence, by striking out “Secretary” and inserting in lieu thereof “Secretary of Defense”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following new sentence: “In the case of such an overseas dental plan, the Secretary may waive or reduce the copayments otherwise required by subsection (e) to the extent the Secretary determines appropriate for the effective and efficient operation of the plan.”.</content></paragraph> </section> <section> <num value="733">SEC. 733. </num><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote><heading>PREMIUM COLLECTION REQUIREMENTS FOR MEDICAL AND DENTAL INSURANCE PROGRAMS; EXTENSION OF DEADLINE FOR IMPLEMENTATION OF DENTAL INSURANCE PROGRAM FOR MILITARY RETIREES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Premium Collection For Selected Reserve Dental Insurance</inline>.—</heading><content>Paragraph (3) of section 1076b(b) of title 10, United States Code, is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>The Secretary of Defense shall establish procedures for the collection of the member’s share of the premium for coverage by the dental insurance plan. To the maximum extent practicable, a member’s share shall be deducted and withheld from the basic pay payable to the member for inactive duty training or basic pay payable to the member for active duty (if pay is available to the member). Such share shall be used to pay the premium for coverage by the dental insurance plan.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Premium Collection For Retiree Dental Insurance Plan</inline>.—</heading><content>Paragraph (2) of section 1076c(c) of such title is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The Secretary of Defense shall establish procedures for the collection of the premiums charged for coverage by the dental insurance plan. To the maximum extent practicable, the premiums payable by a member entitled to retired pay shall be deducted and withheld from the retired pay of the member (if pay is available to the member).”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1076b">10 USC 1076b note</ref>.</p></sidenote><heading><inline class="smallCaps">Report to Congress</inline>.—</heading><content>Not later than March 1, 1998, the Secretary of Defense shall submit to Congress a report on the premium collection procedures established pursuant to paragraph (3) of section 1076b(b) of title 10, United States Code, and paragraph <page identifier="/us/stat/111/1813">111 STAT. 1813</page>(2) of section 1076c(c) of such title. The report shall describe the extent to which premium collections are made under such paragraphs through deductions and withholding from pay.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Limitation on Implementation of Alternative Collection Procedures</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1076b">10 USC 1076b note</ref>.</p></sidenote><content>The Secretary of Defense may not implement procedures for collecting premiums under section 1076b(b)(3) of title 10, United States Code, or section 1076c(c)(2) of such title other than by deductions and withholding from pay until 120 days after the date that the Secretary submits a report to Congress describing the justifications for implementing such alternative procedures.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Extension of Deadline For Implementation of Dental Insurance Plan For Military Retirees</inline>.—</heading><content>Section 703(b) of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2590) is amended by striking “<quotedText>October<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1076c">10 USC 1076c note</ref>.</p></sidenote> 1, 1997</quotedText>” and inserting “<quotedText>April 1, 1998</quotedText>”.</content> </subsection> </section> <section> <num value="734">SEC. 734. </num><heading>DENTAL INSURANCE PLAN COVERAGE FOR RETIREES OF THE PUBLIC HEALTH SERVICE AND NOAA</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Eligibility</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Subsection (a) of section 1076c of title 10, United States Code, is amended by striking out “military retirees” and inserting in lieu thereof “retirees of the uniformed services”.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Subsection (b)(1) of such section is amended by striking out “Armed Forces” and inserting in lieu thereof “uniformed services”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Officials Responsible</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Subsection (a) of such section (as amended by subsection (a)) is further amended by inserting “<quotedText>, in consultation with the other administering Secretaries,</quotedText>” after “Secretary of Defense”.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Subsection (h) of such section is amended by striking out “Secretary of Transportation” and inserting in lieu thereof “other administering Secretaries”.</content></paragraph> </subsection> </section> <section> <num value="735">SEC. 735. </num><heading>CONSISTENCY BETWEEN CHAMPUS AND MEDICARE IN PAYMENT RATES FOR SERVICES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Conformity Between Rates</inline>.—</heading><content>Section 1079(h) of title 10, United States Code, is amended by striking out paragraphs (1), (2), and (3) and inserting in lieu thereof the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>Except as provided in paragraphs (2) and (3), payment for a charge for services by an individual health care professional (or other noninstitutional health care provider) for which a claim is submitted under a plan contracted for under subsection (a) shall be equal to an amount determined to be appropriate, to the extent practicable, in accordance with the same reimbursement rules as apply to payments for similar services under title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.). The Secretary of Defense shall determine the appropriate payment amount under this paragraph in consultation with the other administering Secretaries.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Reduced Rates Authorized</inline>.—</heading><content>Paragraph (5) of such section is amended by adding at the end the following new sentence: “With the consent of the health care provider, the Secretary is also authorized to reduce the authorized payment for certain health care services below the amount otherwise required by the payment limitations under paragraph (1).”.<page identifier="/us/stat/111/1814">111 STAT. 1814</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><chapeau>Such section is further amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in paragraph (5), by striking out “paragraph (4), the Secretary” and inserting in lieu thereof “paragraph (2), the Secretary of Defense”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by redesignating paragraphs (4), (5), and (6) as paragraphs (2), (3), and (4), respectively.</content></paragraph> </subsection> </section> <section> <num value="736">SEC. 736. </num><heading>USE OF PERSONAL SERVICES CONTRACTS FOR PROVISION OF HEALTH CARE SERVICES AND LEGAL PROTECTION FOR PROVIDERS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Use of Contracts Outside Medical Treatment Facilities</inline>.—</heading><chapeau>Section 1091(a) of title 10, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>(1)</quotedText>” before “The Secretary of Defense”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The Secretary of Defense, and the Secretary of Transportation with respect to the Coast Guard when it is not operating as a service in the Navy, may also enter into personal services contracts to carry out other health care responsibilities of the Secretary (such as the provision of medical screening examinations at Military Entrance Processing Stations) at locations outside medical treatment facilities, as determined necessary pursuant to regulations prescribed by the Secretary. The Secretary may not enter into a contract under this paragraph after the end of the one-year period beginning on the date of the enactment of this paragraph.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Defense of Suits</inline>.—</heading><chapeau>Section 1089 of such title is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subsection (a), by adding at the end the following <sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote>new sentence: “This subsection shall also apply if the physician, dentist, nurse, pharmacist, or paramedical or other supporting personnel (or the estate of such person) involved is serving under a personal services contract entered into under section 1091 of this title.”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>in subsection (f)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by inserting “<quotedText>(1)</quotedText>” after “(f)”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>With respect to the Secretary of Defense and the Armed Forces Retirement Home Board, the authority provided by paragraph (1) also includes the authority to provide for reasonable attorney’s fees for persons described in subsection (a), as determined necessary pursuant to regulations prescribed by the head of the agency concerned.”.</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Report</inline>.—</heading><chapeau>Not later than March 31, 1998, the Secretary of Defense shall submit to Congress a report on the feasible alternative means for performing the medical screening examinations that are routinely performed at Military Entrance Processing Stations. The report shall contain a discussion of the feasibility and cost of the use of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the TRICARE system for the performance of the examinations; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>each other alternative identified in the report.</content></paragraph> </subsection> </section> <section> <num value="737">SEC. 737. </num><heading>PORTABILITY OF STATE LICENSES FOR DEPARTMENT OF DEFENSE HEALTH CARE PROFESSIONALS.</heading> <chapeau>Section 1094 of title 10, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by redesignating subsection (d) as subsection (e); and<page identifier="/us/stat/111/1815">111 STAT. 1815</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting after subsection (c) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><paragraph class="inline"><num value="1">(1) </num><content>Notwithstanding any law regarding the licensure of health care providers, a health-care professional described in paragraph (2) may practice the health profession or professions of the health-care professional in any State, the District of Columbia, or a Commonwealth, territory, or possession of the United States, regardless of whether the practice occurs in a health care facility of the Department of Defense, a civilian facility affiliated with the Department of Defense, or any other location authorized by the Secretary of Defense.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><chapeau>A health-care professional referred to in paragraph (1) is a member of the armed forces who—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>has a current license to practice medicine, osteopathic medicine, dentistry, or another health profession; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>is performing authorized duties for the Department of Defense”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> </section> <section> <num value="738">SEC. 738. </num><heading>STANDARD FORM AND REQUIREMENTS REGARDING CLAIMS FOR PAYMENT FOR SERVICES.</heading><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Clarification of Existing Requirements</inline>.—</heading><content>Section 1106 of title 10, United States Code, is amended to read as follows: <quotedContent> <section> <num value="1106">“§ 1106. </num><heading>Submittal of claims: standard form; time limits</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Standard Form</inline>.—</heading><content>The Secretary of Defense, after consultation with the other administering Secretaries, shall prescribe by regulation a standard form for the submission of claims for the payment of health care services provided under this chapter.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Time for Submission</inline>.—</heading><content>A claim for payment for services provided under this chapter shall be submitted as provided in such regulations not later than one year after the services are provided.”.</content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections at the beginning of chapter 55 of title 10, United States Code, is amended by striking out the item relating to section 1106 and inserting in lieu thereof the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“1106.</designator> <label>Submittal of claims: standard form; time limits.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="739">SEC. 739. </num><heading>CHIROPRACTIC HEALTH CARE DEMONSTRATION PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Two-Year Extension</inline>.—</heading><content>Subsection (b) of section 731 of the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103–337; 10 U.S.C. 1092 note) is amended by striking out “1997” and inserting in lieu thereof “1999”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Expansion to at Least Three Additional Treatment Facilities</inline>.—</heading><content>Subsection (a)(2)(A) of such section is amended by striking out “not less than 10” and inserting in lieu thereof “the National Naval Medical Center, the Walter Reed Army Medical Center, and not less than 11 other”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Reports</inline>.—</heading><chapeau>Subsection (c) of such section is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking paragraph (3); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following new paragraphs: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>Not later than January 30, 1998, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report that identifies the additional treatment facilities designated to furnish chiropractic care under the program that were not so designated before the report required by paragraph <page identifier="/us/stat/111/1816">111 STAT. 1816</page>(1) was prepared, together with the plan for the conduct of the program at the additional treatment facilities.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>Not later than May 1, 1998, the Secretary of Defense shall modify the plan for evaluating the program submitted pursuant to paragraph (2) in order to provide for the evaluation of the program at all of the designated treatment facilities under the program, including the treatment facilities referred to in paragraph (3).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><content>Not later than May 1, 2000, the Secretary shall submit to the committees referred to in paragraph (3) a final report in accordance with the plan submitted pursuant to paragraph (2).”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> </section> </subtitle> <subtitle> <num value="E">Subtitle E—</num><heading>Other Matters</heading> <section> <num value="741">SEC. 741. </num><heading>CONTINUED ADMISSION OF CIVILIANS AS STUDENTS IN PHYSICIAN ASSISTANT TRAINING PROGRAM OF ARMY MEDICAL DEPARTMENT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Civilian Attendance</inline>.—</heading><paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Chapter 407 of title 10, United States Code, is amended by adding at the end the following new section: <quotedContent> <section> <num value="4416">“§ 4416. </num><heading>Academy of Health Sciences: admission of civilians in physician assistant training program</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>The Secretary of the Army may, pursuant to an agreement entered into with an accredited institution of higher education—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>permit students of the institution to attend the didactic portion of the physician assistant training program conducted y the Army Medical Department at the Academy of Health Sciences at Fort Sam Houston, Texas; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>accept from the institution academic services to support the physician assistant training program at the Academy.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Agreement for Exchange of Services</inline>.—</heading><content>An agreement entered into with an institution of higher education under this section shall require the institution, in exchange for services provided under paragraph (1) of subsection (a), to provide academic services described in paragraph (2) of such subsection that the Secretary and authorized representatives of the institution consider appropriate.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote><heading><inline class="smallCaps">Selection of Students</inline>.—</heading><content>In consultation with the authorized representatives of the institution of higher education concerned, the Secretary shall prescribe the qualifications and methods of selection for students of the institution to receive instruction at the Academy under this section. The qualifications shall be comparable to those generally required for admission to the physician assistant training program at the Academy.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Rules of Attendance</inline>.—</heading><content>Except as the Secretary determines necessary, a student who receives instruction at the Academy under this section shall be subject to the same regulations governing attendance, discipline, discharge, and dismissal as apply to other persons attending the Academy.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Limitations</inline>.—</heading><chapeau>The Secretary shall ensure the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>That the Army Medical Department, in carrying out an agreement under this section, does not incur costs in excess of the costs that the department would incur to obtain, by means other than the agreement, academic services that are <page identifier="/us/stat/111/1817">111 STAT. 1817</page>comparable to those provided by the institution pursuant to the agreement.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>That attendance of civilian students at the Academy under this section does not cause a decrease in the number of members of the armed forces enrolled in the physician assistant training program at the Academy.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f) </num><heading><inline class="smallCaps">Annual Report</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>Each year, the Secretary shall submit to Congress a report on the exchange of services under this section during the year. The report shall contain the following:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>The number of civilian students who receive instruction at the Academy under this section.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>An assessment of the benefits derived by the United States.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>Reports are required under paragraph (1) only for years during which an agreement is in effect under this section.”.</content></paragraph> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of such chapter is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“4416.</designator> <label>Academy of Health Sciences: admission of civilians in physician assistant training program.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Effect on Existing Demonstration Program</inline>.—</heading><content>An agreement entered into under the demonstration program for the admission of civilians as physician assistant students at the Academy of Health Sciences, Fort Sam Houston, Texas, established pursuant to section 732 of the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103–337; 108 Stat. 2810) shall be treated as an agreement entered into under section 4416 of title 10, United States Code (as added by subsection (a)). The agreement may be extended in such manner and for such period as the parties to the agreement consider appropriate consistent with section 4416.</content> </subsection> </section> <section> <num value="742">SEC. 742. </num><heading>PAYMENT FOR EMERGENCY HEALTH CARE OVERSEAS FOR MILITARY AND CIVILIAN PERSONNEL OF THE ON-SITE INSPECTION AGENCY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Payment of Costs</inline>.—</heading><chapeau>The Secretary of Defense may pay the costs of any emergency health care that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>is needed by a member of the Armed Forces, civilian employee of the Department of Defense, or civilian employee of a contractor operating under a contract with the Department of Defense while the member or employee is performing temporary or permanent duty with the On-Site Inspection Agency outside the United States; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>is furnished to such person during fiscal year 1998 by a source outside the United States.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Funding</inline>.—</heading><content>Funds authorized to be appropriated for the expenses of the On-Site Inspection Agency for fiscal year 1998 by this Act shall be available to cover payments for emergency health care provided under subsection (a).</content> </subsection> </section> <section> <num value="743">SEC. 743. </num><heading>AUTHORITY FOR AGREEMENT FOR USE OF MEDICAL RESOURCE FACILITY, ALAMOGORDO, NEW MEXICO.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Authority</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of the Air Force may enter into an agreement with Gerald Champion Hospital, Alamogordo, New Mexico, under which the Secretary may furnish health care services to eligible individuals in a medical resource facility in Alamogordo, New Mexico, that is constructed and equipped, in part, using funds provided by the Secretary under the agreement.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>For purposes of this section:<page identifier="/us/stat/111/1818">111 STAT. 1818</page></chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>The term “eligible individual” means any individual eligible for medical and dental care under chapter 55 of title 10, United States Code, including any member of the uniformed services entitled to such care under section 1074(a) of that title.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>The terms “medical resource facility” and “facility” mean the medical resource facility to be constructed and equipped pursuant to the agreement authorized by paragraph (1).</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><content>The term “Hospital” means Gerald Champion Hospital, Alamogordo, New Mexico.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Content of Agreement</inline>.—</heading><chapeau>Any agreement entered into under subsection (a) shall specify, at a minimum, the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>The relationship between the Hospital and the Secretary of the Air Force in the provision of health care services to eligible individuals in the medical resource facility, including—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>whether or not the Secretary and the Hospital are to use and administer the facility jointly or independently; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>under what circumstances the Hospital is to act as a provider of health care services under the managed care option of the TRICARE program known as TRICARE Prime.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>Matters relating to the administration of the agreement, including—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the duration of the agreement;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the rights and obligations of the Secretary and the Hospital under the agreement, including any contracting or grievance procedures applicable under the agreement;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>the types of care to be provided to eligible individuals under the agreement, including the cost to the Department of the Air Force of providing the care to eligible individuals during the term of the agreement;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>the access of Air Force medical personnel to the facility under the agreement;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E) </num><content>the rights and responsibilities of the Secretary and the Hospital upon termination of the agreement; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F) </num><content>any other matters jointly identified by the Secretary and the Hospital.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><chapeau>The nature of the arrangement between the Secretary and the Hospital with respect to the ownership of the facility and any property under the agreement, including—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the nature of that arrangement while the agreement is in force;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the nature of that arrangement upon termination of the agreement; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>any requirement for reimbursement of the Secretary by the Hospital as a result of the arrangement upon termination of the agreement.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The amount of the funds made available under subsection (c) that the Secretary will contribute for the construction and equipping of the facility.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Any conditions or restrictions relating to the construction, equipping, or use of the facility.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Availability of Funds for Construction and Equipping of Facility</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Of the amount authorized to be appropriated <page identifier="/us/stat/111/1819">111 STAT. 1819</page>pursuant to section 301(4) for operation and maintenance for the Air Force, not more than $7,000,000 may be used by the Secretary of the Air Force to make a contribution toward the construction and equipping of the medical resource facility in the event that the Secretary enters into the agreement authorized by subsection (a). Notwithstanding any other provision of law, the Secretary may not use other sources of funds to make a contribution toward the construction or equipping of the facility.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Notwithstanding subsection (b)(3) regarding the ownership and reimbursement issues to be addressed in the agreement authorized by subsection (a), the Secretary may not contribute funds made available under paragraph (1) toward the construction and equipping of the facility unless the agreement requires, in exchange for the contribution, that the Hospital provide health care services to eligible individuals without charge to the Secretary or at a reduced rate. The value of the services provided by the Hospital shall be at least equal to the amount of the contribution made by the Secretary, and the Hospital shall complete the provision of services equal in value to the Secretary’s contribution within seven years after the facility becomes operational. The provision of additional discounted services to be provided by the Hospital shall be included in the agreement. The value and types of services to be provided by the Hospital shall be negotiated in accordance with principles of resource-sharing agreements under the TRICARE program.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Notice and Wait</inline>.—</heading><content>The Secretary of the Air Force may not enter into the agreement authorized by subsection (a) until 90 days after the Secretary of Defense submits to the congressional defense committees the report required by subsection (e).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Report on Proposed Agreement</inline>.—</heading><content>The Secretary of Defense shall submit to Congress a report containing an analysis of, and recommendations regarding, the agreement proposed to be entered into under subsection (a), in particular, the implications of the agreement on regional health care costs and its effect on implementation of the TRICARE program in the region. The report shall also include a copy of the agreement, the results of a cost-benefit analysis conducted by the Secretary of the Air Force with respect to the agreement, and such other information with respect to the agreement as the Secretary of Defense and the Secretary of the Air Force considers appropriate. The cost-benefit analysis shall consider the effects of the agreement on operation and maintenance and military construction requirements at Holloman Air Force Base, New Mexico.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Subsequent Reports</inline>.—</heading><content>If the Secretary of the Air Force enters into the agreement authorized by subsection (a), the Secretary shall submit to Congress an annual report containing a revised cost-benefit analysis of the consequences of the agreement as in effect during the year covered by the report, including a full accounting of any cost savings realized by the Department of the Air Force as a result of the agreement. A report shall be submitted for each year in which the agreement is in effect or until the Hospital provides the full value of health care services required under subsection (c)(2), whichever occurs first.<page identifier="/us/stat/111/1820">111 STAT. 1820</page></content> </subsection> </section> <section> <num value="744">SEC. 744. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1073">10 USC 1073 note</ref>.</p></sidenote><heading>DISCLOSURES OF CAUTIONARY INFORMATION ON PRESCRIPTION MEDICATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Regulations Required</inline>.—</heading><content>Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense, in consultation with the administering Secretaries referred to in section 1073 of title 10, United States Code, shall prescribe regulations to require each source described in subsection (d) that dispenses a prescription medication to a beneficiary under chapter 55 of such title to include with the medication the written cautionary information required by subsection (b).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Information To Be Disclosed</inline>.—</heading><content>Information required to be disclosed about a medication under the regulations shall include appropriate cautions about usage of the medication, including possible side effects and potentially hazardous interactions with foods.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Form of Information</inline>.—</heading><content>The regulations shall require that information be furnished in a form that, to the maximum extent practicable, is easily read and understood.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Covered Sources</inline>.—</heading><chapeau>The regulations shall apply to the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Pharmacies and any other dispensers of prescription medications in medical facilities of the uniformed services.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Sources of prescription medications under any mail order pharmaceuticals program provided by any of the administering Secretaries under chapter 55 of title 10, United States Code.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Pharmacies paid under the Civilian Health and Medical Program of the Uniformed Services (including the TRICARE program).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Pharmacies, and any other pharmaceutical dispensers, of designated providers referred to in section 721(5) of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2593; 10 U.S.C. 1073 note).</content></paragraph> </subsection> </section> <section> <num value="745">SEC. 745. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1073">10 USC 1073 note</ref>.</p></sidenote><heading>COMPETITIVE PROCUREMENT OF CERTAIN OPHTHALMIC SERVICES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Competitive Procurement Required</inline>.—</heading><content>Beginning not later than October 1, 1998, the Secretary of Defense shall competitively procure from private-sector sources, or other sources outside of the Department of Defense, all ophthalmic services related to the provision of single vision and multivision eyeware for members of the Armed Forces, retired members, and certain covered beneficiaries under chapter 55 of title 10, United States Code, who would otherwise receive such ophthalmic services through the Department of Defense.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Exception</inline>.—</heading><chapeau>Subsection (a) shall not apply to the extent that the Secretary of Defense determines that the use of sources within the Department of Defense to provide such ophthalmic services—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>is necessary to meet the readiness requirements of the Armed Forces; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>is more cost effective.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Completion of Existing Orders</inline>.—</heading><content>Subsection (a) shall not apply to orders for ophthalmic services received on or before September 30, 1998.<page identifier="/us/stat/111/1821">111 STAT. 1821</page></content> </subsection> </section> <section> <num value="746">SEC. 746. </num><heading>COMPTROLLER GENERAL STUDY OF ADEQUACY AND EFFECT OF MAXIMUM ALLOWABLE CHARGES FOR PHYSICIANS UNDER CHAMPUS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Study Required</inline>.—</heading><chapeau>The Comptroller General shall conduct a study regarding the adequacy of the maximum allowable charges for physicians established under the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS) and the effect of such charges on the participation of physicians in CHAMPUS. The study shall include an evaluation of the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The methodology used by the Secretary of Defense to establish maximum allowable charges for physicians under CHAMPUS, and whether such methodology conforms to the requirements of section 1079(h) of title 10, United States Code.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The differences between the established charges under CHAMPUS and reimbursement rates for similar services under title XVIII of the Social Security Act and other health care programs.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The basis for physician complaints that the CHAMPUS established charges are too low.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The difficultly of CHAMPUS in ensuring physician compliance with the CHAMPUS established charges in the absence of legal mechanisms to enforce compliance, and the effect of noncompliance on patient out-of-pocket expenses.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>The effect of the established charges under CHAMPUS on the participation of physicians in CHAMPUS, and the extent and success of Department of Defense efforts to increase physician participation in areas with low participation rates.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Submission of Report</inline>.—</heading><content>Not later than March 1, 1998, the Comptroller General shall submit to Congress a report containing the results of the study required by subsection (a).</content> </subsection> </section> <section> <num value="747">SEC. 747. </num><heading>COMPTROLLER GENERAL STUDY OF DEPARTMENT OF DEFENSE PHARMACY PROGRAMS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Study</inline>.—</heading><chapeau>Not later than March 31, 1998, the Comptroller General shall submit to Congress a study evaluating the pharmacy programs of the Department of Defense. The study shall examine the impact of such pharmacy programs on the aggregate cost, quality, and accessibility of health care provided to covered beneficiaries under chapter 55 of title 10, United States Code, and shall include an examination of the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The merits and feasibility of establishing a uniform formulary for military treatment facility pharmacies and civilian contractor pharmacy benefit administrators.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The reasons that military treatment facilities deny covered beneficiaries access to pharmacy care and shift such beneficiaries to other sources of pharmacy care.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The merits and feasibility of using private sector cost control mechanisms implemented by authorized civilian contractors in the Department of Defense medical programs, and the existence of any barriers to the use of such mechanisms, including factors that may undermine the incentives of such contractors to optimize treatment outcomes in managing the care of covered beneficiaries without exceeding budgeted resources.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The cost impacts, if any, of the use of commercial managed care methods of furnishing pharmaceuticals to covered beneficiaries by TRICARE program contractors instead of <page identifier="/us/stat/111/1822">111 STAT. 1822</page>procuring pharmaceuticals at discounted prices pursuant to section 8126 of title 38, United States Code.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>The existence of options for increasing the discounts available to TRICARE program contractors without undermining controls for preventing diversion of items procured by the Department of Defense to nonmilitary populations.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote><heading><inline class="smallCaps">Response to Study</inline>.—</heading><content>Not later than 90 days after the Comptroller General submits to Congress the study required by subsection (a), the Secretary of Defense shall submit to Congress a report on the feasibility and advisability of implementing changes to the pharmacy programs of the Department of Defense based on the findings and conclusions of the study.</content> </subsection> </section> <section> <num value="748">SEC. 748. </num><heading>COMPTROLLER GENERAL STUDY OF NAVY GRADUATE MEDICAL EDUCATION PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Study Required</inline>.—</heading><content>The Comptroller General shall conduct a study to evaluate the validity of the recommendations made by the Medical Education Policy Council of the Bureau of Medicine and Surgery of the Navy regarding restructuring the graduate medical education program of the Department of the Navy. The study shall specifically address the Council’s recommendations relating to residency training conducted at the Naval Medical Center, Portsmouth, Virginia, and the National Naval Medical Center, Bethesda, Maryland.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Submission of Report</inline>.—</heading><content>Not later than March 1, 1998, the Comptroller General shall submit to Congress and the Secretary of the Navy a report containing the results of the study required by subsection (a).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Moratorium on Restructuring</inline>.—</heading><content>Until the report required by subsection (b) is submitted to Congress, the Secretary of the Navy may not make any change in the types of residency programs conducted under the Navy graduate medical education program or the locations at which such residency programs are conducted or otherwise restructure the Navy graduate medical education program.</content> </subsection> </section> <section> <num value="749">SEC. 749. </num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote><heading>STUDY OF EXPANSION OF PHARMACEUTICALS BY MAIL PROGRAM TO INCLUDE ADDITIONAL MEDICARE-ELIGIBLE COVERED BENEFICIARIES.</heading> <content>Not later than six months after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report regarding the feasibility and advisability of expanding the category of persons eligible to participate in the demonstration project for the purchase of prescription pharmaceuticals by mail, as required by section 702(a) of the National Defense Authorization Act for Fiscal Year 1993 (Public Law 102–484; 10 U.S.C. 1079 note), to include persons referred to in subsection (c) of section 1086 of title 10, United States Code, who are covered by subsection (d)(1) of such section and reside in the United States outside of the catchment area of a medical treatment facility of the uniformed services.</content> </section> <section> <num value="750">SEC. 750. </num><heading>COMPTROLLER GENERAL STUDY OF REQUIREMENT FOR MILITARY MEDICAL FACILITIES IN NATIONAL CAPITAL REGION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Study Required</inline>.—</heading><chapeau>The Comptroller General shall conduct a study to evaluate the requirements for Army, Navy, and Air Force medical facilities in the National Capital Region (as defined <page identifier="/us/stat/111/1823">111 STAT. 1823</page>in section 2674(1)(2) of title 10, United States Code). The study shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>specifically address requirements with respect to geography, facilities, integrated residencies, and medical environments; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>provide specific recommendations with respect to how medical and health care provided by these facilities may be better coordinated to more efficiently serve, throughout the National Capital Region, members of the Armed Forces on active duty and covered beneficiaries under chapter 55 of title 10, United States Code.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Submission of Report</inline>.—</heading><content>Not later than six months after the date of the enactment of this Act, the Comptroller General shall submit to Congress and the Secretary of Defense a report containing the results of the study required by subsection (a).</content> </subsection> </section> <section> <num value="751">SEC. 751. </num><heading>REPORT ON POLICIES AND PROGRAMS TO PROMOTE HEALTHY LIFESTYLES FOR MEMBERS OF THE ARMED FORCES AND THEIR DEPENDENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than March 30, 1998, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report on the effectiveness of the policies and programs of the Department of Defense intended to promote healthy lifestyles for members of the Armed Forces and their dependents.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Policies and Programs To Be Assessed</inline>.—</heading><chapeau>The report under subsection (a) shall include an assessment of the effectiveness of the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Programs intended to educate members of the Armed Forces and their dependents about the potential health consequences of the use of alcohol and tobacco.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Policies of the commissaries, post exchanges, and service clubs, and for entertainment activities of the Department of Defense, relating to the sale and use of alcohol and tobacco.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Programs intended to provide support to members of the Armed Forces and their dependents who choose to reduce or eliminate their use of alcohol or tobacco.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Any other policies or programs intended to promote healthy lifestyles for members of the Armed Forces and their dependents.</content></paragraph> </subsection> </section> <section> <num value="752">SEC. 752. </num><heading>SENSE OF CONGRESS REGARDING QUALITY HEALTH CARE FOR RETIREES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>Congress makes the following findings:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Many retired military personnel believe that they were promised lifetime health care in exchange for 20 or more years of service.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Military retirees are the only Federal Government personnel who have been prevented from using their employer-provided health care at or after 65 years of age.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Military health care has become increasingly difficult to obtain for military retirees as the Department of Defense reduces its health care infrastructure.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Military retirees deserve to have a health care program that is at least comparable with that of retirees from civilian employment by the Federal Government.<page identifier="/us/stat/111/1824">111 STAT. 1824</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>The availability of quality, lifetime health care is a critical recruiting incentive for the Armed Forces.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>Quality health care is a critical aspect of the quality of life of the men and women serving in the Armed Forces.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Sense of Congress</inline>.—</heading><chapeau>It is the sense of Congress that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the United States has incurred a moral obligation to provide health care to members and former members of the Armed Forces who are entitled to retired or retainer pay (or its equivalent);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>it is, therefore, necessary to provide quality, affordable health care to such retirees; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Congress and the President should take steps to address the problems associated with the availability of health care for such retirees within two years after the date of the enactment of this Act.</content></paragraph> </subsection> </section> </subtitle> <subtitle> <num value="F">Subtitle F—</num><heading>Persian Gulf Illness</heading> <section> <num value="761">SEC. 761. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1074">10 USC 1074 note</ref>.</p></sidenote><heading>DEFINITIONS.</heading> <chapeau>For purposes of this subtitle:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The term “Gulf War illness” means any one of the complex of illnesses and symptoms that might have been contracted by members of the Armed Forces as a result of service in the Southwest Asia theater of operations during the Persian Gulf War.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The term “Persian Gulf War” has the meaning given that term in section 101 of title 38, United States Code.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The term “Persian Gulf veteran” means an individual who served on active duty in the Armed Forces in the Southwest Asia theater of operations during the Persian Gulf War.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The term “contingency operation” has the meaning given that term in section 101(a) of title 10, United States Code, and includes a humanitarian operation, peacekeeping operation, or similar operation.</content></paragraph> </section> <section> <num value="762">SEC. 762. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1074">10 USC 1074 note</ref>.</p></sidenote><heading>PLAN FOR HEALTH CARE SERVICES FOR PERSIAN GULF VETERANS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Plan Required</inline>.—</heading><content>The Secretary of Defense and the Secretary of Veterans Affairs, acting jointly, shall prepare a plan to provide appropriate health care to Persian Gulf veterans (and dependents eligible by law) who suffer from a Gulf War illness.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Contents of Plan</inline>.—</heading><chapeau>In preparing the plan, the Secretaries shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>use the presumptions of service connection and illness specified in paragraphs (1) and (2) of section 721(d) of the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103–337; 10 U.S.C. 1074 note) to determine the Persian Gulf veterans (and dependents eligible by law) who should be covered by the plan;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>consider the need and methods available to provide health care services to Persian Gulf veterans who are no longer on active duty in the Armed Forces, such as Persian Gulf veterans who are members of the reserve components and Persian Gulf veterans who have been separated from the Armed Forces; and<page identifier="/us/stat/111/1825">111 STAT. 1825</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>estimate the costs to the Government of providing full or partial health care services under the plan to covered Persian Gulf veterans (and covered dependents eligible by law).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Follow-up Treatment</inline>.—</heading><content>The plan required by subsection (a) shall specifically address the measures to be used to monitor the quality, appropriateness, and effectiveness of, and patient satisfaction with, health care services provided to Persian Gulf veterans after their initial medical examination as part of registration in the Persian Gulf War Veterans Health Registry or the Comprehensive Clinical Evaluation Program.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Submission of Plan</inline>.—</heading><content>Not later than March 1, 1998, the Secretaries shall submit to Congress the plan required by subsection (a).</content> </subsection> </section> <section> <num value="763">SEC. 763. </num><heading>COMPTROLLER GENERAL STUDY OF REVISED DISABILITY CRITERIA FOR PHYSICAL EVALUATION BOARDS.</heading> <content>Not later than March 1, 1998, the Comptroller General shall submit to Congress a study evaluating the revisions made by the Secretary of Defense (as required by section 721(e) of the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103337; 10 U.S.C. 1074 note)) to the Physical Evaluation Board criteria used to set disability ratings for members of the Armed Forces who are no longer medically qualified for continuation on active duty so as to ensure accurate disability ratings related to a diagnosis of a Gulf War illness.</content> </section> <section> <num value="764">SEC. 764. </num><heading>MEDICAL CARE FOR CERTAIN RESERVES WHO SERVED IN SOUTHWEST ASIA DURING THE PERSIAN GULF WAR.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>Chapter 55 of title 10, United States Code, is amended by inserting after section 1074d the following new section: <quotedContent> <section> <num value="1074e">“§ 1074e. </num><heading>Medical care: certain Reserves who served in Southwest Asia during the Persian Gulf Conflict</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Entitlement to Medical Care</inline>.—</heading><content>A member of the armed forces described in subsection (b) is entitled to medical care for a qualifying Persian Gulf symptom or illness to the same extent and under the same conditions (other than the requirement that the member be on active duty) as a member of a uniformed service who is entitled to such care under section 1074(a) of this title.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Covered Members</inline>.—</heading><chapeau>Subsection (a) applies to a member of a reserve component who—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>is a Persian Gulf veteran;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>has a qualifying Persian Gulf symptom or illness; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>is not otherwise entitled to medical care for such symptom or illness under this chapter and is not otherwise eligible for hospital care and medical services for such symptom or illness under section 1710 of title 38.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>In this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>The term ‘Persian Gulf veteran’ means a member of the armed forces who served on active duty in the Southwest Asia theater of operations during the Persian Gulf Conflict.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><chapeau>The term ‘qualifying Persian Gulf symptom or illness’ means, with respect to a member described in subsection (b), a symptom or illness—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>that the member registered before September 1, 1997, in the Comprehensive Clinical Evaluation Program <page identifier="/us/stat/111/1826">111 STAT. 1826</page>of the Department of Defense and that is presumed under section 721(d) of the National Defense Authorization Act for Fiscal Year 1995 (10 U.S.C. 1074 note) to be a result of service in the Southwest Asia theater of operations during the Persian Gulf Conflict; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>that the member registered before September 1, 1997, in the Persian Gulf War Veterans Health Registry maintained by the Department of Veterans Affairs pursuant to section 702 of the Persian Gulf War Veterans’ Health Status Act (38 U.S.C. 527 note).”.</content></subparagraph> </paragraph> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 1074d the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“1074e.</designator> <label>Medical care: certain Reserves who served in Southwest Asia during the Persian Gulf Conflict.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="765">SEC. 765. </num><heading>IMPROVED MEDICAL TRACKING SYSTEM FOR MEMBERS DEPLOYED OVERSEAS IN CONTINGENCY OR COMBAT OPERATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">System Required</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Chapter 55 of title 10, United States Code, is amended by inserting after section 1074e (as added by section 764) the following new section: <quotedContent> <section> <num value="1074f">“§ 1074f. </num><heading>Medical tracking system for members deployed overseas</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">System Required</inline>.—</heading><content>The Secretary of Defense shall establish a system to assess the medical condition of members of the armed forces (including members of the reserve components) who are deployed outside the United States or its territories or possessions as part of a contingency operation (including a humanitarian operation, peacekeeping operation, or similar operation) or combat operation.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Elements of System</inline>.—</heading><content>The system described in subsection (a) shall include the use of predeployment medical examinations and postdeployment medical examinations (including an assessment of mental health and the drawing of blood samples) to accurately record the medical condition of members before their deployment and any changes in their medical condition during the course of their deployment. The postdeployment examination shall be conducted when the member is redeployed or otherwise leaves an area in which the system is in operation (or as soon as possible thereafter).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Recordkeeping</inline>.—</heading><content>The results of all medical examinations conducted under the system, records of all health care services (including immunizations) received by members described in subsection (a) in anticipation of their deployment or during the course of their deployment, and records of events occurring in the deployment area that may affect the health of such members shall be retained and maintained in a centralized location to improve future access to the records.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Quality Assurance</inline>.—</heading><content>The Secretary of Defense shall establish a quality assurance program to evaluate the success of the system in ensuring that members described in subsection (a) receive predeployment medical examinations and postdeployment medical examinations and that the recordkeeping requirements with respect to the system are met.”.<page identifier="/us/stat/111/1827">111 STAT. 1827</page></content> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 1074e (as added by section 764) the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“1074f.</designator> <label>Medical tracking system for members deployed overseas.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Report</inline>.—</heading><chapeau>Not later than March 1, 1998, the Secretary of Defense shall submit to Congress an analysis of the administrative implications of establishing and administering the medical tracking system required by section 1074f of title 10, United States Code, as added by subsection (a). The report shall include, for fiscal year 1999 and the 5 successive fiscal years, a separate analysis and specification of the projected costs and operational considerations for each of the following required aspects of the system:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Predeployment medical examinations.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Postdeployment medical examinations.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Recordkeeping.</content></paragraph> </subsection> </section> <section> <num value="766">SEC. 766. </num><heading>NOTICE OF USE OF INVESTIGATIONAL NEW DRUGS OR DRUGS UNAPPROVED FOR THEIR APPLIED USE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Notice Requirements</inline>.—</heading><content>Chapter 55 of title 10, United States Code, is amended by adding at the end the following new section: <quotedContent> <section> <num value="1107">“§1107. </num><heading>Notice of use of an investigational new drug or a drug unapproved for its applied use</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Notice Required</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Whenever the Secretary of Defense requests or requires a member of the armed forces to receive an investigational new drug or a drug unapproved for its applied use, the Secretary shall provide the member with notice containing the information specified in subsection (d).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The Secretary shall also ensure that health care providers who administer an investigational new drug or a drug unapproved for its applied use, or who are likely to treat members who receive such a drug, receive the information required to be provided under paragraphs (3) and (4) of subsection (d).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Time of Notice</inline>.—</heading><content>The notice required to be provided to a member under subsection (a)(1) shall be provided before the investigational new drug or drug unapproved for its applied use is first administered to the member, if practicable, but in no case later than 30 days after the drug is first administered to the member.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Form of Notice</inline>.—</heading><content>The notice required under subsection (a)(1) shall be provided in writing unless the Secretary of Defense determines that the use of written notice is impractical because of the number of members receiving the investigational new drug or drug unapproved for its applied use, time constraints, or similar reasons. If the Secretary provides notice under subsection (a)(1) in a form other than in writing, the Secretary shall submit to Congress a report describing the notification method used and the reasons for the use of the alternative method.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Content of Notice</inline>.—</heading><chapeau>The notice required under subsection (a)(1) shall include the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>Clear notice that the drug being administered is an investigational new drug or a drug unapproved for its applied use.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The reasons why the investigational new drug or drug unapproved for its applied use is being administered.<page identifier="/us/stat/111/1828">111 STAT. 1828</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>Information regarding the possible side effects of the investigational new drug or drug unapproved for its applied use, including any known side effects possible as a result of the interaction of such drug with other drugs or treatments being administered to the members receiving such drug.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>Such other information that, as a condition of authorizing the use of the investigational new drug or drug unapproved for its applied use, the Secretary of Health and Human Services may require to be disclosed.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Records of Use</inline>.—</heading><chapeau>The Secretary of Defense shall ensure that the medical records of members accurately document—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>the receipt by members of any investigational new drug or drug unapproved for its applied use; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>the notice required by subsection (a)(1).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>In this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>The term ‘investigational new drug’ means a drug covered by section 505(i) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355(i)).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The term ‘drug unapproved for its applied use’ means a drug administered for a use not described in the approved labeling of the drug under section 505 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355).”.</content></paragraph> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections at the beginning of such chapter is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“1107.</designator> <label>Notice of use of an investigational new drug or a drug unapproved for its applied use.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="767">SEC. 767. </num><heading>REPORT ON PLANS TO TRACK LOCATION OF MEMBERS IN A THEATER OF OPERATIONS.</heading> <content>Not later than March 1, 1998, the Secretary of Defense shall submit to Congress a report containing a plan for collecting and maintaining information regarding the daily location of units of the Armed Forces, and to the extent practicable individual members of such units, serving in a theater of operations during a contingency operation or combat operation.</content> </section> <section> <num value="768">SEC. 768. </num><heading>SENSE OF CONGRESS REGARDING THE DEPLOYMENT OF SPECIALIZED UNITS FOR DETECTING AND MONITORING CHEMICAL, BIOLOGICAL, AND SIMILAR HAZARDS IN A THEATER OF OPERATIONS.</heading> <content>It is the sense of Congress that the Secretary of Defense, in conjunction with the Chairman of the Joint Chiefs of Staff, should take such actions as are necessary to ensure that the units of the Armed Forces deployed in the theater of operations for each contingency operation or combat operation include specialized units with sufficient capability (including personnel with the appropriate training and expertise, and the appropriate equipment) to detect and monitor the presence of chemical, biological, and similar hazards to which members of the Armed Forces could be exposed in that theater during the operation.</content> </section> <section> <num value="769">SEC. 769. </num><heading>REPORT ON EFFECTIVENESS OF RESEARCH EFFORTS REGARDING GULF WAR ILLNESSES.</heading> <chapeau>Not later than March 1, 1998, the Secretary of Defense shall submit to Congress a report evaluating the effectiveness of medical research initiatives regarding Gulf War illnesses. The report shall address the following:<page identifier="/us/stat/111/1829">111 STAT. 1829</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The type and effectiveness of previous research efforts, including the activities undertaken pursuant to section 743 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 10 U.S.C. 1074 note), section 722 of the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103–337; 10 U.S.C. 1074 note), and sections 270 and 271 of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103–160; 107 Stat. 1613).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Recommendations regarding additional research regarding Gulf War illnesses, including research regarding the nature and causes of Gulf War illnesses and appropriate treatments for such illnesses.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The adequacy of Federal funding and the need for additional funding for medical research initiatives regarding Gulf War illnesses.</content></paragraph> </section> <section> <num value="770">SEC. 770. </num><heading>PERSIAN GULF ILLNESS CLINICAL TRIAUS PROGRAM.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1074">10 USC 1074 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>Congress finds the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>There are many ongoing studies that investigate risk factors which may be associated with the health problems experienced by Persian Gulf veterans; however, there have been no studies that examine health outcomes and the effectiveness of the treatment received by such veterans.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The medical literature and testimony presented in hearings on Gulf War illnesses indicate that there are therapies, such as cognitive behavioral therapy, that have been effective in treating patients with symptoms similar to those seen in many Persian Gulf veterans.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Establishment of Program</inline>.—</heading><content>The Secretary of Defense and the Secretary of Veterans Affairs, acting jointly, shall establish a program of cooperative clinical trials at multiple sites to assess the effectiveness of protocols for treating Persian Gulf veterans who suffer from ill-defined or undiagnosed conditions. Such protocols shall include a multidisciplinary treatment model, of which cognitive behavioral therapy is a component.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Funding</inline>.—</heading><content>Of the funds authorized to be appropriated in section 201(1) for research, development, test, and evaluation for the Army, the sum of $4,500,000 shall be available for program element 62787A (medical technology) in the budget of the Department of Defense for fiscal year 1998 to carry out the clinical trials program established pursuant to subsection (b).</content> </subsection> </section> <section> <num value="771">SEC. 771. </num><heading>SENSE OF CONGRESS CONCERNING GULF WAR ILLNESS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>Congress makes the following findings:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Americans served in the Persian Gulf Conflict of 1991 in defense of vital national security interests of the United States.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>It was known to United States intelligence and military commanders that biological and chemical agents were in theater throughout the conflict.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>An undetermined amount of these agents were released into theater.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>A large number of United States military veterans and allied veterans who served in the Southwest Asia theater of operations have been stricken with a variety of severe illnesses.<page identifier="/us/stat/111/1830">111 STAT. 1830</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Previous efforts to discern the causes of those illnesses have been inadequate, and those illnesses are affecting the health of both veterans and their families.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Sense of Congress</inline>.—</heading><content>It is the sense of Congress that all promising technology and treatments relating to Gulf War illnesses should be fully explored and tested to facilitate treatment for members of the Armed Forces and veterans who served the United States in the Persian Gulf conflict and are stricken with unexplainable illness.</content> </subsection> </section> </subtitle> <num value="VIII">TITLE VIII—</num><heading>ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS</heading> <toc> <referenceItem role="subtitle"><designator>Subtitle A—</designator><label>Amendments to General Contracting Authorities, Procedures, and Limitations</label></referenceItem> <referenceItem role="section"><designator>Sec. 801.</designator> <label>Expansion of authority to enter into contracts crossing fiscal years to all severable service contracts not exceeding a year.</label></referenceItem> <referenceItem role="section"><designator>Sec. 802.</designator> <label>Vesting of title in the United States under contracts paid under progress payment arrangements or similar arrangements.</label></referenceItem> <referenceItem role="section"><designator>Sec. 803.</designator> <label>Restriction on undefinitized contract actions.</label></referenceItem> <referenceItem role="section"><designator>Sec. 804.</designator> <label>Limitation and report on payment of restructuring costs under defense contracts.</label></referenceItem> <referenceItem role="section"><designator>Sec. 805.</designator> <label>Increased price limitation on purchases of right-hand drive vehicles.</label></referenceItem> <referenceItem role="section"><designator>Sec. 806.</designator> <label>Multiyear procurement contracts.</label></referenceItem> <referenceItem role="section"><designator>Sec. 807.</designator> <label>Audit of procurement of military clothing and clothing-related items by military installations in the United States.</label></referenceItem> <referenceItem role="section"><designator>Sec. 808.</designator> <label>Limitation on allowability of compensation for certain contractor personnel.</label></referenceItem> <referenceItem role="section"><designator>Sec. 809.</designator> <label>Elimination of certification requirement for grants.</label></referenceItem> <referenceItem role="section"><designator>Sec. 810.</designator> <label>Repeal of limitation on adjustment of shipbuilding contracts.</label></referenceItem> <referenceItem role="section"><designator>Sec. 811.</designator> <label>Item-by-item and country-by-country waivers of domestic source limitations.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle B—</designator><label>Acquisition Assistance Programs</label></referenceItem> <referenceItem role="section"><designator>Sec. 821.</designator> <label>One-year extension of pilot mentor-protege program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 822.</designator> <label>Test program for negotiation of comprehensive subcontracting plans.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle C—</designator><label>Administrative Provisions</label></referenceItem> <referenceItem role="section"><designator>Sec. 831.</designator> <label>Retention of expired funds during the pendency of contract litigation.</label></referenceItem> <referenceItem role="section"><designator>Sec. 832.</designator> <label>Protection of certain information from disclosure.</label></referenceItem> <referenceItem role="section"><designator>Sec. 833.</designator> <label>Unit cost reports.</label></referenceItem> <referenceItem role="section"><designator>Sec. 834.</designator> <label>Plan for providing contracting information to general public and small businesses.</label></referenceItem> <referenceItem role="section"><designator>Sec. 835.</designator> <label>Two-year extension of crediting of certain purchases toward meeting subcontracting goals.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle D—</designator><label>Other Matters</label></referenceItem> <referenceItem role="section"><designator>Sec. 841.</designator> <label>Repeal of certain acquisition requirements and reports.</label></referenceItem> <referenceItem role="section"><designator>Sec. 842.</designator> <label>Use of major range and test facility installations by commercial entities.</label></referenceItem> <referenceItem role="section"><designator>Sec. 843.</designator> <label>Requirement to develop and maintain list of firms not eligible for defense contracts.</label></referenceItem> <referenceItem role="section"><designator>Sec. 844.</designator> <label>Sense of Congress regarding allowability of costs of employee stock ownership plans.</label></referenceItem> <referenceItem role="section"><designator>Sec. 845.</designator> <label>Expansion of personnel eligible to participate in demonstration project relating to acquisition workforce.</label></referenceItem> <referenceItem role="section"><designator>Sec. 846.</designator> <label>Time for submission of annual report relating to Buy American Act.</label></referenceItem> <referenceItem role="section"><designator>Sec. 847.</designator> <label>Repeal of requirement for contractor guarantees on major weapon systems.</label></referenceItem> <referenceItem role="section"><designator>Sec. 848.</designator> <label>Requirements relating to micro-purchases.</label></referenceItem> <referenceItem role="section"><designator>Sec. 849.</designator> <label>Promotion rate for officers in an acquisition corps.</label></referenceItem> <referenceItem role="section"><designator>Sec. 850.</designator> <label>Use of electronic commerce in Federal procurement.</label></referenceItem> <referenceItem role="section"><designator>Sec. 851.</designator> <label>Conformance of policy on performance based management of civilian acquisition programs with policy established for defense acquisition programs.<page identifier="/us/stat/111/1831">111 STAT. 1831</page></label></referenceItem> <referenceItem role="section"><designator>Sec. 852.</designator> <label>Modification of process requirements for the solutions-based contracting pilot program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 853.</designator> <label>Guidance and standards for defense acquisition workforce training requirements.</label></referenceItem> <referenceItem role="section"><designator>Sec. 854.</designator> <label>Study and report to Congress assessing dependence on foreign sources for resistors and capacitors.</label></referenceItem> <referenceItem role="section"><designator>Sec. 855.</designator> <label>Department of Defense and Federal Prison Industries joint study.</label></referenceItem> </toc> <subtitle> <num value="A">Subtitle A—</num><heading>Amendments to General Contracting Authorities, Procedures, and Limitations</heading> <section> <num value="801">SEC. 801. </num><heading>EXPANSION OF AUTHORITY TO ENTER INTO CONTRACTS CROSSING FISCAL YEARS TO ALL SEVERABLE SERVICE CONTRACTS NOT EXCEEDING A YEAR.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Expanded Authority</inline>.—</heading><content>Section 2410a of title 10, United States Code, is amended to read as follows: <quotedContent><section> <num value="2410a">“§ 2410a. </num><heading>Severable service contracts for periods crossing fiscal years</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Authority</inline>.—</heading><content>The Secretary of Defense, the Secretary of a military department, or the Secretary of Transportation with respect to the Coast Guard when it is not operating as a service in the Navy, may enter into a contract for procurement of severable services for a period that begins in one fiscal year and ends in the next fiscal year if (without regard to any option to extend the period of the contract) the contract period does not exceed one year.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Obligation of Funds</inline>.—</heading><content>Funds made available for a fiscal year may be obligated for the total amount of a contract entered into under the authority of subsection (a).”.</content> </subsection> </section></quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The item relating to such section in the table of sections at the beginning of chapter 141 of such title is amended to read as follows: <quotedContent> <toc> <referenceItem role="section"><designator>“2410a.</designator> <label>Severable service contracts for periods crossing fiscal years.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="802">SEC. 802. </num><heading>VESTING OF TITLE IN THE UNITED STATES UNDER CONTRACTS PAID UNDER PROGRESS PAYMENT ARRANGEMENTS OR SIMILAR ARRANGEMENTS.</heading> <content>Section 2307 of title 10, United States Code, is amended— (1) by redesignating subsection (h) as subsection (i); and (2) by inserting after subsection (g) the following new subsection (h): <quotedContent> <subsection class="indent0 fontsize10"> <num value="h">“(h) </num><content>Vesting of Title in the United States.—If a contract paid by a method authorized under subsection (a)(1) provides for title to property to vest in the United States, the title to the property shall vest in accordance with the terms of the contract, regardless of any security interest in the property that is asserted before or after the contract is entered into.”.</content> </subsection> </quotedContent> </content></section> <section> <num value="803">SEC. 803. </num><heading>RESTRICTION ON UNDEFINITIZED CONTRACT ACTIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Applicability of Waiver Authority to Humanitarian or Peacekeeping Operations</inline>.—</heading><content>Section 2326(b)(4) of title 10, United States Code, is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><chapeau>The head of an agency may waive the provisions of this subsection with respect to a contract of that agency if that head <page identifier="/us/stat/111/1832">111 STAT. 1832</page>of an agency determines that the waiver is necessary in order to support any of the following operations:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>A contingency operation.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>A humanitarian or peacekeeping operation.”.</content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Humanitarian or Peacekeeping Operation Defined</inline>.—</heading><chapeau>Section 2302(7) of such title is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out “(7)(A)” and inserting in lieu thereof “(7)”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking out “(B) In subparagraph (A), the” and inserting in lieu thereof “(8) The”.</content></paragraph> </subsection> </section> <section> <num value="804">SEC. 804. </num><heading>LIMITATION AND REPORT ON PAYMENT OF RESTRUCTURING COSTS UNDER DEFENSE CONTRACTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Chapter 137 of title 10, United States Code, is amended by inserting after section 2324 the following new section: <quotedContent> <section> <num value="2325">“§ 2325. </num><heading>Restructuring costs</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Limitation on Payment of Restructuring Costs</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>The Secretary of Defense may not pay, under section 2324 of this title, a defense contractor for restructuring costs associated with a business combination of the contractor unless the Secretary determines in writing either—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>that the amount of projected savings for the Department of Defense associated with the restructuring will be at least twice the amount of the costs allowed; or</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>that the amount of projected savings for the Department of Defense associated with the restructuring will exceed the amount of the costs allowed and that the business combination will result in the preservation of a critical capability that otherwise might be lost to the Department.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The Secretary may not delegate the authority to make a determination under paragraph (1) to an official of the Department of Defense below the level of an Assistant Secretary of Defense.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Report</inline>.—</heading><chapeau>Not later than March 1 in each of 1998, 1999, 2000, 2001, and 2002, the Secretary of Defense shall submit to Congress a report that contains, with respect to business combinations occurring on or after August 15, 1994, the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><chapeau>For each defense contractor to which the Secretary has paid, under section 2324 of this title, restructuring costs associated with a business combination, a summary of the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>An estimate of the amount of savings for the Department of Defense associated with the restructuring that has been realized as of the end of the preceding calendar year.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>An estimate of the amount of savings for the Department of Defense associated with the restructuring that is expected to be achieved on defense contracts.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><chapeau>An identification of any business combination for which the Secretary has paid restructuring costs under section 2324 of this title during the preceding calendar year and, for each such business combination—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>the supporting rationale for allowing such costs;<page identifier="/us/stat/111/1833">111 STAT. 1833</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>factual information associated with the determination made under subsection (a) with respect to such costs; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>a discussion of whether the business combination would have proceeded without the payment of restructuring costs by the Secretary.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><chapeau>For business combinations of major defense contractors that took place during the year preceding the year of the report—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>an assessment of any potentially adverse effects that the business combinations could have on competition for Department of Defense contracts (including potential horizontal effects, vertical effects, and organizational conflicts of interest), the national technology and industrial base, or innovation in the defense industry; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>the actions taken to mitigate the potentially adverse effects.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Definition</inline>.—</heading><content>In this section, the term ‘business combination’ includes a merger or acquisition.”.</content> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 2324 the following new item: <toc> <referenceItem role="section"><designator>“2325.</designator> <label>Restructuring costs.”.</label></referenceItem> </toc> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">GAO Reports</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>Not later than April 1, 1998, the<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2325">10 USC 2325 note</ref>.</p></sidenote> Comptroller General shall—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><chapeau>in consultation with appropriate officials in the Department of Defense—</chapeau> <clause class="indent2 fontsize10"><num value="i">(i) </num><content>identify major market areas affected by business combinations of defense contractors since January 1, 1990; and</content></clause> <clause class="indent2 fontsize10"><num value="ii">(ii) </num><content>develop a methodology for determining the savings from business combinations of defense contractors on the prices paid on particular defense contracts; and</content></clause> </subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>submit to the congressional defense committees a report describing, for each major market area identified pursuant to subparagraph (A)(i), the changes in numbers of businesses competing for major defense contracts since January 1, 1990.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>Not later than December 1, 1998, the Comptroller General shall submit to the congressional defense committees a report containing the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><chapeau>Updated information on—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>restructuring costs of business combinations paid by the Department of Defense pursuant to certifications under section 818 of the National Defense Authorization Act for Fiscal Year 1995, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>savings realized by the Department of Defense as a result of the business combinations for which the payment of restructuring costs was so certified.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>An assessment of the savings from business combinations of defense contractors on the prices paid on a meaningful sample of defense contracts, determined in accordance with the methodology developed pursuant to paragraph (1)(A)(ii), as well as a description of the methodology.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>Any recommendations that the Comptroller General considers appropriate.<page identifier="/us/stat/111/1834">111 STAT. 1834</page></content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><content>In this subsection, the term “business combination” has the meaning given that term in section 2325(c) of title 10, United States Code, as added by subsection (a).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2325">10 USC 2325 note</ref>.</p></sidenote><heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>Section 2325(a) of title 10, United States Code, as added by subsection (a), shall apply with respect to business combinations that occur after the date of the enactment of this Act.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Repeal of Superseded Provisions</inline>.—</heading><content>Subsections (a) and (g)(3) of section 818 of the National Defense Authorization Act for Fiscal Year 1995 (10 U.S.C. 2324 note) are repealed.</content> </subsection> </section> <section> <num value="805">SEC. 805. </num><heading>INCREASED PRICE LIMITATION ON PURCHASES OF RIGHTHAND DRIVE VEHICLES.</heading> <content>Section 2253(a)(2) of title 10, United States Code, is amended by striking out “$12,000” and inserting in lieu thereof “$30,000”.</content> </section> <section> <num value="806">SEC. 806. </num><heading>MULTIYEAR PROCUREMENT CONTRACTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Requirement for Authorization by Law in Acts Other Than Appropriations Acts</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Subsection (i) of section 2306b of title 10, United States Code, is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>In the case of the Department of Defense, a multiyear contract in an amount equal to or greater than $500,000,000 may not be entered into for any fiscal year under this section unless the contract is specifically authorized by law in an Act other than an appropriations Act.”.</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2306b">10 USC 2306b note</ref>.</p></sidenote><content>Paragraph (3) of section 2306b(i) of title 10, United States Code, as added by paragraph (1), shall not apply with respect to a contract authorized by law before the date of the enactment of this Act.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Codification of Annual Recurring Multiyear Procurement Requirements</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Such section is further amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="l">“(l) </num><heading><inline class="smallCaps">Various Additional Requirements With Respect to Multiyear Defense Contracts</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><subparagraph class="inline"><num value="A">(A) </num><content>The head of an agency may not initiate a contract described in subparagraph (B) unless the congressional defense committees are notified of the proposed contract at least 30 days in advance of the award of the proposed contract.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><chapeau>Subparagraph (A) applies to the following contracts:</chapeau> <clause class="indent1 fontsize10"><num value="i">“(i) </num><chapeau>A multiyear contract—</chapeau> <subclause class="indent2 fontsize10"><num value="I">“(I) </num><content>that employs economic order quantity procurement in excess of $20,000,000 in any one year of the contract; or</content></subclause> <subclause class="indent2 fontsize10"><num value="II">“(II) </num><content>that includes an unfunded contingent liability in excess of $20,000,000.</content></subclause> </clause> <clause class="indent1 fontsize10"><num value="ii">“(ii) </num><content>Any contract for advance procurement leading to a multiyear contract that employs economic order quantity procurement in excess of $20,000,000 in any one year.</content></clause> </subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The head of an agency may not initiate a multiyear contract for which the economic order quantity advance procurement is not funded at least to the limits of the Government’s liability.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>The head of an agency may not initiate a multiyear procurement contract for any system (or component thereof) if the value of the multiyear contract would exceed $500,000,000 unless authority for the contract is specifically provided in an appropriations Act.<page identifier="/us/stat/111/1835">111 STAT. 1835</page></content></paragraph> <paragraph class="indent0 fontsize10"><num value="4">“(4) </num><content>The head of an agency may not terminate a multiyear procurement contract until 10 days after the date on which notice of the proposed termination is provided to the congressional defense committees.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="5">“(5) </num><content>The execution of multiyear contracting authority shall require the use of a present value analysis to determine lowest cost compared to an annual procurement.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="6">“(6) </num><content>This subsection does not apply to the National Aeronautics and Space Administration or to the Coast Guard.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="7">“(7) </num><chapeau>In this subsection, the term ‘congressional defense committees’ means the following:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>The Committee on Armed Services of the Senate and the Subcommittee on Defense of the Committee on Appropriations of the Senate.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>The Committee on National Security of the House of Representatives and the Subcommittee on National Security of the Committee on Appropriations of the House of Representatives”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The amendment made by paragraph (1) shall take effect<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2306b">10 USC 2306b note</ref>.</p></sidenote> on October 1, 1998.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Technical and Conforming Amendments</inline>.—</heading><chapeau>Such section is further amended as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>Subsection (a) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking out “finds—” in the matter preceding paragraph (1) and inserting in lieu thereof “finds each of the following:”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by capitalizing the initial letter of the first word in each of paragraphs (1) through (6);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>by striking out the semicolon at the end of paragraphs (1) through (4) and inserting in lieu thereof a period; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>by striking out and” at the end of paragraph (5) and inserting in lieu thereof a period.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Subsection (d)(1) is amended by striking out “paragraph (1)” and inserting in lieu thereof “subsection (a)”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Subsection (i)(1) is amended by striking “<quotedText>five-year</quotedText>” and inserting in lieu thereof “future-years”.</content></paragraph> </subsection> </section> <section> <num value="807">SEC. 807. </num><heading>AUDIT OF PROCUREMENT OF MILITARY CLOTHING AND CLOTHING-RELATED ITEMS BY MILITARY INSTALLATIONS IN THE UNITED STATES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Audit Requirement</inline>.—</heading><content>Not later than September 30, 1998, the Inspector General of the Department of Defense shall perform an audit of purchases of military clothing and clothing-related items in excess of the micro-purchase threshold by military installations during fiscal years 1996 and 1997 to determine the extent to which such installations procured military clothing and clothing-related items in violation of the Buy American Act (41 U.S.C. 10a et seq.) during those fiscal years.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Installations To Be Audited</inline>.—</heading><chapeau>The audit under subsection (a)—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>shall include an audit of the procurement of military clothing and clothing-related items by a military installation of each of the Army, Navy, Air Force, and Marine Corps; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>shall not cover procurements of clothing and clothing-related items by the Defense Logistics Agency.<page identifier="/us/stat/111/1836">111 STAT. 1836</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Definition</inline>.—</heading><content>The term “micro-purchase threshold” has the meaning provided by section 32(f) of the Office of Federal Procurement Policy Act (41 U.S.C. 428(f)).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than October 31, 1998, the Inspector General of the Department of Defense shall submit to Congress a report on the results of the audit performed under subsection (a).</content> </subsection> </section> <section> <num value="808">SEC. 808. </num><heading>LIMITATION ON ALLOWABILITY OF COMPENSATION FOR CERTAIN CONTRACTOR PERSONNEL.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Certain Compensation Not Allowable as Costs Under Defense Contracts</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Subsection (e)(1) of section 2324 of title 10, United States Code, is amended by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="P">“(P) </num><content>Costs of compensation of senior executives of contractors for a fiscal year, regardless of the contract funding source, to the extent that such compensation exceeds the benchmark compensation amount determined applicable for the fiscal year by the Administrator for Federal Procurement Policy under section 39 of the Office of Federal Procurement Policy Act (41 U.S.C. 435).”.</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Subsection (1) of such section is amended by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>The term ‘compensation’, for a year, means the total amount of wages, salary, bonuses and deferred compensation for the year, whether paid, earned, or otherwise accruing, as recorded in an employer’s cost accounting records for the year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><chapeau>The term ‘senior executive’, with respect to a contractor, means—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>the chief executive officer of the contractor or any individual acting in a similar capacity for the contractor;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>the four most highly compensated employees in management positions of the contractor other than the chief executive officer; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>in the case of a contractor that has components which report directly to the contractor’s headquarters, the five most highly compensated employees in management positions at each such component.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="6">“(6) </num><content>The term ‘fiscal year’ means a fiscal year established by a contractor for accounting purposes.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Certain Compensation Not Allowable as Costs Under Non-Defense Contracts</inline>.—</heading><paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Subsection (e)(1) of section 306 of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 256) is amended by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="P">“(P) </num><content>Costs of compensation of senior executives of contractors for a fiscal year, regardless of the contract funding source, to the extent that such compensation exceeds the benchmark compensation amount determined applicable for the fiscal year by the Administrator for Federal Procurement Policy under section 39 of the Office of Federal Procurement Policy Act (41 U.S.C. 435).”.</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Such section is further amended by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="m">“(m) </num><heading><inline class="smallCaps">Other Definitions</inline>.—</heading><chapeau>In this section:<page identifier="/us/stat/111/1837">111 STAT. 1837</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>The term ‘compensation’, for a fiscal year, means the total amount of wages, salary, bonuses and deferred compensation for the fiscal year, whether paid, earned, or otherwise accruing, as recorded in an employer’s cost accounting records for the fiscal year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><chapeau>The term ‘senior executive’, with respect to a contractor, means—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>the chief executive officer of the contractor or any individual acting in a similar capacity for the contractor;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>the four most highly compensated employees in management positions of the contractor other than the chief executive officer; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>in the case of a contractor that has components which report directly to the contractor’s headquarters, the five most highly compensated individuals in management positions at each such component.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>The term ‘fiscal year’ means a fiscal year established by a contractor for accounting purposes.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Levels of Compensation Not Allowable</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Office of Federal Procurement Policy Act (41 U.S.C. 401 et seq.) is amended by adding at the end the following: <quotedContent> <section> <num value="39">“SEC. 39. </num><heading>LEVELS OF COMPENSATION OF CERTAIN CONTRACTOR PERSONNEL NOT ALLOWABLE AS COSTS UNDER CERTAIN CONTRACTS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t41/s435">41 USC 435</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Determination Required</inline>.—</heading><content>For purposes of section 2324(e)(1)(P) of title 10, United States Code, and section 306(e)(1)(P) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 256(e)(1)(P)), the Administrator shall review commercially available surveys of executive compensation and, on the basis of the results of the review, determine a benchmark compensation amount to apply for each fiscal year. In making determinations under this subsection the Administrator shall consult with the Director of the Defense Contract Audit Agency and such other officials of executive agencies as the Administrator considers appropriate.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Benchmark Compensation Amount</inline>.—</heading><content>The benchmark compensation amount applicable for a fiscal year is the median amount of the compensation provided for all senior executives of all benchmark corporations for the most recent year for which data is available at the time the determination under subsection (a) is made.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>In this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>The term ‘compensation’, for a fiscal year, means the total amount of wages, salary, bonuses and deferred compensation for the fiscal year, whether paid, earned, or otherwise accruing, as recorded in an employer’s cost accounting records for the fiscal year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><chapeau>The term ‘senior executive’, with respect to a corporation, means—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>the chief executive officer of the corporation or any individual acting in a similar capacity for the corporation;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>the four most highly compensated employees in management positions of the corporation other than the chief executive officer; and<page identifier="/us/stat/111/1838">111 STAT. 1838</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>in the case of a corporation that has components which report directly to the corporate headquarters, the five most highly compensated individuals in management positions at each such component.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>The term ‘benchmark corporation’, with respect to a fiscal year, means a publicly-owned United States corporation that has annual sales in excess of $50,000,000 for the fiscal year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>The term ‘publicly-owned United States corporation’ means a corporation organized under the laws of a State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or a possession of the United States the voting stock of which is publicly traded.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><content>The term ‘fiscal year’ means a fiscal year established by a contractor for accounting purposes.”.</content></paragraph> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The table of sections in section 1(b) of such Act is amended by adding at the end the following: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 39.</designator> <label>Levels of compensation of certain contractor personnel not allowable as costs under certain contracts.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t41/s435">41 USC 435 note</ref>.</p></sidenote><heading><inline class="smallCaps">Regulations</inline>.—</heading><content>Regulations implementing the amendments made by this section shall be published in the Federal Register not later than the effective date of the amendments under subsection (e).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t41/s435">41 USC 435 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><chapeau>The amendments made by this section shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>take effect on the date that is 90 days after the date of the enactment of this Act; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote><content>apply with respect to costs of compensation incurred after January 1, 1998, under covered contracts entered into before, on, or after the date of the enactment of this Act.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t41/s435">41 USC 435 note</ref>.</p></sidenote><heading><inline class="smallCaps">Exclusive Applicability</inline>.—</heading><content>Notwithstanding any other provision of law, no other limitation in law on the allowability of costs of compensation of senior executives under covered contracts shall apply to such costs of compensation incurred after January 1, 1998.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t41/s435">41 USC 435 note</ref>.</p></sidenote><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>In this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The term “covered contract” has the meaning given such term in section 2324(1) of title 10, United States Code, and section 306(1) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 256(1)).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The terms “compensation” and “senior executive” have the meanings given such terms in section 2324(1) of title 10, United States Code, and section 306(m) of the Federal Property and Administrative Services Act of 1949.</content></paragraph> </subsection> </section> <section> <num value="809">SEC. 809. </num><heading>ELIMINATION OF CERTIFICATION REQUIREMENT FOR GRANTS.</heading> <chapeau>Section 5153 of the Drug-Free Workplace Act of 1988 (Public Law 100–690; 102 Stat. 4306; 41 U.S.C. 702) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>in subsection (a)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>in paragraph (1), by striking out “has certified to the granting agency that it will” and inserting in lieu thereof “agrees to”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>in paragraph (2), by striking out “certifies to the agency” and inserting in lieu thereof “agrees”; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>in subsection (b)(1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking out subparagraph (A);<page identifier="/us/stat/111/1839">111 STAT. 1839</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>in subparagraph (A), as so redesignated, by striking out “such certification by failing to carry out”.</content></subparagraph> </paragraph> </section> <section> <num value="810">SEC. 810. </num><heading>REPEAL OF LIMITATION ON ADJUSTMENT OF SHIPBUILDING CONTRACTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Repeal</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Section 2405 of title 10, United States Code, is repealed.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of chapter 141 of such title is amended by striking out the item relating to section 2405.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Applicability</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Except as provided in paragraph (2),<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2405">10 USC 2405 note</ref>.</p></sidenote> the repeal made by subsection (a) shall be effective with respect to claims, requests for equitable adjustment, and demands for payment under shipbuilding contracts that have been or are submitted before, on, or after the date of the enactment of this Act.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>Section 2405 of title 10, United States Code, as in effect immediately before the date of the enactment of this Act, shall continue to apply to a contractor’s claim, request for equitable adjustment, or demand for payment under a shipbuilding contract that was submitted before such date if—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>a contracting officer denied the claim, request, or demand, and the period for appealing the decision to a court or board under the Contract Disputes Act of 1978 expired before such date;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>a court or board of contract appeals considering the claim, request, or demand (including any appeal of a decision of a contracting officer to deny the claim, request, or demand) denied or dismissed the claim, request, or demand (or the appeal), and the action of the court or board became final and unappealable before such date; or</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><content>the contractor released or releases the claim, request, or demand.</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="811">SEC. 811. </num><heading>ITEM-BY-ITEM AND COUNTRY-BY-COUNTRY WAIVERS OF DOMESTIC SOURCE LIMITATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Item-by-Item and Country-by-Country Implementation of Certain Waiver Authority</inline>.—</heading><content>Section 2534 of title 10, United States Code, is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="i">“(i) </num><heading><inline class="smallCaps">Implementation of Certain Waiver Authority</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of Defense may exercise the waiver authority described in paragraph (2) only if the waiver is made for a particular item listed in subsection (a) and for a particular foreign country.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>This subsection applies to the waiver authority provided<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> by subsection (d) on the basis of the applicability of paragraph (2) or (3) of that subsection.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>The waiver authority described in paragraph (2) may not be delegated below the Under Secretary of Defense for Acquisition and Technology.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="4">“(4) </num><content>At least 15 days before the effective date of any waiver<sidenote><p class="indent0 firstIndent0 fontsize8">Federal Register, publication.</p><p class="indent0 firstIndent0 fontsize8">Notice.</p></sidenote> made under the waiver authority described in paragraph (2), the Secretary shall publish in the Federal Register and submit to the congressional defense committees a notice of the determination to exercise the waiver authority.<page identifier="/us/stat/111/1840">111 STAT. 1840</page></content></paragraph> <paragraph class="indent0 fontsize10"><num value="5">“(5) </num><content>Any waiver made by the Secretary under the waiver authority described in paragraph (2) shall be in effect for a period not greater than one year, as determined by the Secretary.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2534">10 USC 2534 note</ref>.</p></sidenote><heading><inline class="smallCaps">Effective Date</inline>.—</heading><chapeau>Subsection (i) of section 2534 of such title, as added by subsection (a), shall apply with respect to—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>contracts and subcontracts entered into on or after the date of the enactment of this Act; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>options for the procurement of items that are exercised after such date under contracts that are entered into before such date if the option prices are adjusted for any reason other than the application of a waiver granted under subsection (d) of such section 2534, on the basis of the applicability of paragraph (2) or (3) of that subsection.</content></paragraph> </subsection> </section> </subtitle> <subtitle> <num value="B">Subtitle B—</num><heading>Acquisition Assistance Programs</heading> <section> <num value="821">SEC. 821. </num><heading>ONE-YEAR EXTENSION OF PILOT MENTOR-PROTEGE PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">One-Year Extension of Pilot Mentor-Protege Program</inline>.—</heading><chapeau>Section 831(i) of the National Defense Authorization Act for Fiscal Year 1991 (10 U.S.C. 2302 note) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in paragraph (1), by striking out “1998” and inserting in lieu thereof “1999”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in paragraph (2), by striking out “1999” and inserting in lieu thereof “2000”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>in paragraph (3), by striking out “1999” and inserting in lieu thereof “2000”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Study on Implementation of Pilot Mentor-Protege Program</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Comptroller General shall conduct a study on the implementation of the Mentor-Protege Program established under section 831 of the National Defense Authorization Act for Fiscal Year 1991 (10 U.S.C. 2302 note) and the extent to which the program is achieving the purposes established under that section.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>The study also shall include the following:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>A review of the manner in which funds for the program have been obligated.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>An identification and assessment of the average amount spent by the Department of Defense on individual mentorprotege agreements and the correlation between levels of funding and the business development of the protege firms.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><content>An evaluation of the effectiveness of the incentives provided to mentor firms to participate in the program.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="D">(D) </num><content>An assessment of the success of the Mentor-Protege Program in enhancing the business competitiveness and financial independence of protege firms.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote><content>The Comptroller General shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report on the results of the study not later than March 31, 1998.</content></paragraph> </subsection> </section> <section> <num value="822">SEC. 822. </num><heading>TEST PROGRAM FOR NEGOTIATION OF COMPREHENSIVE SUBCONTRACTING PLANS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Content of Subcontracting Plans</inline>.—</heading><chapeau>Subsection (b)(2) of section 834 of the National Defense Authorization Act for Fiscal <page identifier="/us/stat/111/1841">111 STAT. 1841</page>Years 1990 and 1991 (Public Law 101–189; 15 U.S.C. 637 note) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out “plan—” and inserting in lieu thereof “plan of a contractor—”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking out subparagraph (A);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by redesignating subparagraph (B) as subparagraph (A) and by striking out the period at the end of such subparagraph and inserting in lieu thereof “; and”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>shall cover each Department of Defense contract that is entered into by the contractor and each subcontract that is entered into by the contractor as the subcontractor under a Department of Defense contract.”.</content></subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Extension of Program</inline>.—</heading><content>Subsection (e) of such section is amended by striking out “September 30, 1998” in the second sentence and inserting in lieu thereof “September 30, 2000.”.</content> </subsection> </section> </subtitle> <subtitle> <num value="C">Subtitle C—</num><heading>Administrative Provisions</heading> <section> <num value="831">SEC. 831. </num><heading>RETENTION OF EXPIRED FUNDS DURING THE PENDENCY OF CONTRACT LITIGATION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>Chapter 141 of title 10, United States Code, is amended by adding at the end the following new section: <quotedContent> <section> <num value="2410m">“§ 2410m. </num><heading>Retention of amounts collected from contractor during the pendency of contract dispute</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Retention of Funds</inline>.—</heading><chapeau>Notwithstanding sections 1552(a) and 3302(b) of title 31, any amount, including interest, collected from a contractor as a result of a claim made by a military department or Defense Agency under the Contract Disputes Act of 1978 (41 U.S.C. 601 et seq.), shall remain available in accordance with this section to pay—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>any settlement of the claim by the parties;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>any judgment rendered in the contractor’s favor on an appeal of the decision on that claim to the Armed Services Board of Contract Appeals under section 7 of such Act (41 U.S.C. 606); or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>any judgment rendered in the contractor’s favor in an action on that claim in a court of the United States.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Period of Availability</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>The period of availability of an amount under subsection (a), in connection with a claim—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><chapeau>expires 180 days after the expiration of the period for bringing an action on that claim in the United States Court of Federal Claims under section 10(a) of the Contract Disputes Act of 1978 (41 U.S.C. 609(a)) if, within that 180-day period—</chapeau> <clause class="indent2 fontsize10"><num value="i">“(i) </num><content>no appeal on the claim is commenced at the Armed Services Board of Contract Appeals under section 7 of such Act; and</content></clause> <clause class="indent2 fontsize10"><num value="ii">“(ii) </num><content>no action on the claim is commenced in a court of the United States; or</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><chapeau>if not expiring under subparagraph (A), expires—</chapeau> <clause class="indent2 fontsize10"><num value="i">“(i) </num><content>in the case of a settlement of the claim, 180 days after the date of the settlement; or</content></clause> <clause class="indent2 fontsize10"><num value="ii">“(ii) </num><content>in the case of a judgment rendered on the claim in an appeal to the Armed Services Board of Contract <page identifier="/us/stat/111/1842">111 STAT. 1842</page>Appeals under section 7 of the Contract Disputes Act of 1978 or an action in a court of the United States, 180 days after the date on which the judgment becomes final and not appealable.</content></clause> </subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>While available under this section, an amount may be obligated or expended only for a purpose described in subsection (a).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>Upon the expiration of the period of availability of an amount under paragraph (1), the amount shall be covered into the Treasury as miscellaneous receipts.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Reporting Requirement</inline>.—</heading><chapeau>Each year, the Under Secretary of Defense (Comptroller) shall submit to Congress a report on the amounts, if any, that are available for obligation pursuant to this section. The report shall include, at a minimum, the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>The total amount available for obligation.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The total amount collected from contractors during the year preceding the year in which the report is submitted.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>The total amount disbursed in such preceding year and a description of the purpose for each disbursement.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>The total amount returned to the Treasury in such preceding year.”.</content></paragraph> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections at the beginning of chapter 141 of title 10, United States Code, is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“2410m.</designator> <label>Retention of amounts collected from contractor during the pendency of contract dispute.”</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="832">SEC. 832. </num><heading>PROTECTION OF CERTAIN INFORMATION FROM DISCLOSURE.</heading> <content>Section 2371 of title 10, United States Code, is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="i">“(i) </num><heading><inline class="smallCaps">Protection of Certain Information From Disclosure</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Disclosure of information described in paragraph (2) is not required, and may not be compelled, under section 552 of title 5 for five years after the date on which the information is received by the Department of Defense.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>Paragraph (1) applies to information described in subparagraph (B) that is in the records of the Department of Defense if the information was submitted to the Department in a competitive or noncompetitive process having the potential for resulting in an award, to the party submitting the information, of a cooperative agreement that includes a clause described in subsection (d) or another transaction authorized by subsection (a).</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><chapeau>The information referred to in subparagraph (A) is the following:</chapeau> <clause class="indent1 fontsize10"><num value="i">“(i) </num><content>A proposal, proposal abstract, and supporting documents.</content></clause> <clause class="indent1 fontsize10"><num value="ii">“(ii) </num><content>A business plan submitted on a confidential basis.</content></clause> <clause class="indent1 fontsize10"><num value="iii">“(iii) </num><content>Technical information submitted on a confidential basis.”.</content></clause> </subparagraph> </paragraph> </subsection> </quotedContent> </content></section> <section> <num value="833">SEC. 833. </num><heading>UNIT COST REPORTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Immediate Report Required Only for Previously Unreported Increased Costs</inline>.—</heading><content>Subsection (c) of section 2433 of title 10, United States Code, is amended by striking out “during the current fiscal year (other than the last quarterly unit cost report <page identifier="/us/stat/111/1843">111 STAT. 1843</page>under subsection (b) for the preceding fiscal year)” in the matter following paragraph (3).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Immediate Report Not Required for Cost Variances or Schedule Variances of Major Contracts</inline>.—</heading><chapeau>Subsection (c) of such section is further amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>or</quotedText>” at the end of paragraph (1);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking out “or” at the end of paragraph (2); and (3) by striking out paragraph (3).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Congressional Notification of Increased Cost Not Conditioned on Discovery Since Beginning of Fiscal Year</inline>.—</heading><content>Subsection (d)(3) of such section is amended by striking out “(for the first time since the beginning of the current fiscal year)” in the first sentence.</content> </subsection> </section> <section> <num value="834">SEC. 834. </num><heading>PLAN FOR PROVIDING CONTRACTING INFORMATION TO GENERAL PUBLIC AND SMALL BUSINESSES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Requirement for Plan</inline>.—</heading><content>The Secretary of Defense shall develop a plan for improving the responsiveness of the Department of Defense to persons from the general public and small businesses seeking information on how to pursue contracting and technology development opportunities with the department. The plan shall include an assessment and recommendation on the designation of a central point of contact in the department to provide such information.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Submission</inline>.—</heading><content>Not later than March 31, 1998, the Secretary shall submit the plan developed under subsection (a) to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives.</content> </subsection> </section> <section> <num value="835">SEC. 835. </num><heading>TWO-YEAR EXTENSION OF CREDITING OF CERTAIN PURCHASES TOWARD MEETING SUBCONTRACTING GOALS.</heading> <content>Section 2410d(c) of title 10, United States Code, is amended, effective as of September 30, 1997, by striking out “September 30, 1997” and inserting in lieu thereof “September 30, 1999”.</content> </section> </subtitle> <subtitle> <num value="D">Subtitle D—</num><heading>Other Matters</heading> <section> <num value="841">SEC. 841. </num><heading>REPEAL OF CERTAIN ACQUISITION REQUIREMENTS AND REPORTS</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Repeal of Reporting Requirement for Nonmajor Acquisition Programs</inline>.—</heading><content>Section 2220(b) of title 10, United States Code, is amended by striking out “and nonmajor” in the first sentence.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Repeal of Additional Approval Requirement Under Competition Exception for International Agreements</inline>.—</heading><content>Section 2304(f)(2)(E) of title 10, United States Code, is amended by striking out “and such document is approved by the competition advocate for the procuring activity”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Content of Limited Selected Acquisition Reports</inline>.—</heading><chapeau>Section 2432(h)(2) of title 10, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out subparagraph (D); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by redesignating subparagraphs (E) and (F) as subparagraphs (D) and (E), respectively.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Repeal of Report Relating to Procurement Regulations</inline>.—</heading><content>Section 25 of the Office of Federal Procurement Policy Act (41 U.S.C. 421) is amended by striking out subsection (g).<page identifier="/us/stat/111/1844">111 STAT. 1844</page></content> </subsection> </section> <section> <num value="842">SEC. 842. </num><heading>USE OF MAJOR RANGE AND TEST FACILITY INSTALLATIONS BY COMMERCIAL ENTITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Extension of Authority</inline>.—</heading><content>Subsection (g) of section 2681 of title 10, United States Code, is amended by striking out “1998” and inserting in lieu thereof “2002”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Revised Reporting Requirement</inline>.—</heading><content>Subsection (h) of such section is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="h">“(h) </num><heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than March 1, 1998, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report identifying existing and proposed procedures to ensure that the use of Major Range and Test Facility Installations by commercial entities does not compete with private sector test and evaluation services.”.</content> </subsection> </quotedContent> </content></subsection> </section> <section> <num value="843">SEC. 843. </num><heading>REQUIREMENT TO DEVELOP AND MAINTAIN LIST OF FIRMS NOT ELIGIBLE FOR DEFENSE CONTRACTS.</heading> <chapeau>Section 2327 of title 10, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by redesignating subsections (d) and (e) as subsections (f) and (g), respectively; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting after subsection (c) the following new subsections: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">List of Firms Subject to Prohibition</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of Defense shall develop and maintain a list of all firms and subsidiaries of firms that the Secretary has identified as being subject to the prohibition in subsection (b).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>A person may request the Secretary to include on the list maintained under paragraph (1) any firm or subsidiary of a firm that the person believes to be owned or controlled by a foreign government described in subsection (b)(2). Upon receipt of such a request, the Secretary shall determine whether the conditions in paragraphs (1) and (2) of subsection (b) exist in the case of that firm or subsidiary. If the Secretary determines that such conditions do exist, the Secretary shall include the firm or subsidiary on the list.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><content>A firm or subsidiary of a firm included on the list may request the Secretary to remove such firm or subsidiary from the list on the basis that it has been erroneously included on the list or its ownership circumstances have significantly changed. Upon receipt of such a request, the Secretary shall determine whether the conditions in paragraphs (1) and (2) of subsection (b) exist in the case of that firm or subsidiary. If the Secretary determines that such conditions do not exist, the Secretary shall remove the firm or subsidiary from the list.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">“(C) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote><content>The Secretary shall establish procedures to carry out this paragraph.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>The head of an agency shall prohibit each firm or subsidiary of a firm awarded a contract by the agency from entering into a subcontract under that contract in an amount in excess of $25,000 with a firm or subsidiary included on the list maintained under paragraph (1) unless there is a compelling reason to do so. In the case of any subcontract requiring consent by the head of an agency, the head of the agency shall not consent to the award of the subcontract to a firm or subsidiary included on such fist unless there is a compelling reason for such approval.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Distribution of List</inline>.—</heading><content>The Administrator of General Services shall ensure that the list developed and maintained under <page identifier="/us/stat/111/1845">111 STAT. 1845</page>subsection (d) is made available to Federal agencies and the public in the same manner and to the same extent as the list of suspended and debarred contractors compiled pursuant to subpart 9.4 of the Federal Acquisition Regulation”.</content> </subsection> </quotedContent> </content></paragraph> </section> <section> <num value="844">SEC. 844. </num><heading>SENSE OF CONGRESS REGARDING ALLOWABILITY OF COSTS OF EMPLOYEE STOCK OWNERSHIP PLANS.</heading> <chapeau>It is the sense of Congress that the Secretary of Defense should not disallow, under Department of Defense contracts, the following costs:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Interest costs associated with deferred compensation employee stock ownership plans that were incurred before January 1, 1994.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Costs related to employee stock ownership plan (ESOP) debt, control premiums, or marketability discounts associated with the valuation of ESOP stock of closely held companies that were incurred before January 1, 1995.</content></paragraph> </section> <section> <num value="845">SEC. 845. </num><heading>EXPANSION OF PERSONNEL ELIGIBLE TO PARTICIPATE IN DEMONSTRATION PROJECT RELATING TO ACQUISITION WORKFORCE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Covered Personnel</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Subsection (a) of section 4308 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104–106; 10 U.S.C. 1701 note) is amended by adding before the period at the end the following: “and supporting personnel assigned to work directly with the acquisition workforce”.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Subsection (b)(3)(A) of such section is amended by inserting before the semicolon the following: “or involves a team of personnel more than half of which consists of members of the acquisition workforce and the remainder of which consists of supporting personnel assigned to work directly with the acquisition workforce”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Commencement of Project</inline>.—</heading><content>Subsection (b)(3)(B) of such section is amended by striking out “this Act” and inserting in lieu thereof “the National Defense Authorization Act for Fiscal Year 1998”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Limitation on Number of Participants</inline>.—</heading><content>Such section is further amended by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Limitation on Number of Participants</inline>.—</heading><content>The total number of persons who may participate in the demonstration project under this section may not exceed 95,000”.</content> </subsection> </quotedContent> </content></subsection> </section> <section> <num value="846">SEC. 846. </num><heading>TIME FOR SUBMISSION OF ANNUAL REPORT RELATING TO BUY AMERICAN ACT.</heading> <content>Section 827 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2611; 41 U.S.C. 10b–3) is amended by striking out “120 days” and inserting in lieu thereof “90 days”.</content> </section> <section> <num value="847">SEC. 847. </num><heading>REPEAL OF REQUIREMENT FOR CONTRACTOR GUARANTEES ON MAJOR WEAPON SYSTEMS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Repeal</inline>.—</heading><content>Section 2403 of title 10, United States Code, is repealed.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical and Conforming Amendments</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The table of sections at the beginning of chapter 141 of such title is amended by striking out the item relating to section 2403.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>Section 803 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2604; 10 U.S.C. 2430 note) is amended—<page identifier="/us/stat/111/1846">111 STAT. 1846</page></chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>in subsection (a), by striking out “2403,”;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>by striking out subsection (c); and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><content>by redesignating subsection (d) as subsection (c).</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="848">SEC. 848. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2304">10 USC 2304 note</ref>.</p></sidenote><heading>REQUIREMENTS RELATING TO MICRO-PURCHASES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps"></inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Not later than October 1, 1998, at least 60 percent of all eligible purchases made by the Department of Defense for an amount less than the micro-purchase threshold shall be made through streamlined micro-purchase procedures.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Not later than October 1, 2000, at least 90 percent of all eligible purchases made by the Department of Defense for an amount less than the micro-purchase threshold shall be made through streamlined micro-purchase procedures.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Eligible Purchases</inline>.—</heading><content>The Secretary of Defense shall establish which purchases are eligible for purposes of subsection (a). In establishing which purchases are eligible, the Secretary may exclude those categories of purchases determined not to be appropriate or practicable for streamlined micro-purchase procedures.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Plan</inline>.—</heading><content>Not later than March 1, 1998, the Secretary of Defense shall provide to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a plan to implement this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Report</inline>.—</heading><chapeau>Not later than March 1 in each of the years 1999, 2000, and 2001, the Secretary of Defense shall submit to the congressional defense committees a report on the implementation of this section. Each report shall include—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the total dollar amount of all Department of Defense purchases for an amount less than the micro-purchase threshold in the fiscal year preceding the year in which the report is submitted;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the total dollar amount of such purchases that were considered to be eligible purchases;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>the total amount of such eligible purchases that were made through a streamlined micro-purchase method; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>a description of the categories of purchases excluded from the definition of eligible purchases established under subsection (b).</content></subparagraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>In this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The term “micro-purchase threshold” has the meaning provided in section 32 of the Office of Federal Procurement Policy Act (41 U.S.C. 428).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The term “streamlined micro-purchase procedures” means procedures providing for the use of the Governmentwide commercial purchase card or any other method for carrying out micro-purchases that the Secretary of Defense prescribes in the regulations implementing this subsection.</content></paragraph> </subsection> </section> <section> <num value="849">SEC. 849. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1731">10 USC 1731 note</ref>.</p></sidenote><heading>PROMOTION RATE FOR OFFICERS IN AN ACQUISITION CORPS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Review of Acquisition Corps Promotion Selections</inline>.—</heading><content>Upon the approval of the President or his designee of the report of a selection board convened under section 611(a) of title 10, United States Code, which considered members of an Acquisition Corps of a military department for promotion to a grade above O–4, the Secretary of the military department shall submit a copy of the report to the Under Secretary of Defense for Acquisition and Technology for review.<page identifier="/us/stat/111/1847">111 STAT. 1847</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Reporting Requirement</inline>.—</heading><content>Not later than January 31 of each year, the Under Secretary of Defense for Acquisition and Technology shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report containing the Under Secretary’s assessment of the extent to which each military department is complying with the requirement set forth in section 1731(b) of title 10, United States Code.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Termination of Requirements</inline>.—</heading><content>This section shall cease to be effective on October 1, 2000.</content> </subsection> </section> <section> <num value="850">SEC. 850. </num><heading>USE OF ELECTRONIC COMMERCE IN FEDERAL PROCUREMENT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Policy</inline>.—</heading><content>Section 30 of the Office of Federal Procurement Policy Act (41 U.S.C. 426) is amended to read as follows: <quotedContent> <section> <num value="30">“SEC. 30. </num><heading>USE OF ELECTRONIC COMMERCE IN FEDERAL PROCUREMENT.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>The head of each executive agency, after consulting with the Administrator, shall establish, maintain, and use, to the maximum extent that is practicable and cost-effective, procedures and processes that employ electronic commerce in the conduct and administration of its procurement system.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Applicable Standards</inline>.—</heading><content>In conducting electronic commerce, the head of an agency shall apply nationally and internationally recognized standards that broaden interoperability and ease the electronic interchange of information.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Agency Procedures</inline>.—</heading><chapeau>The head of each executive agency shall ensure that systems, technologies, procedures, and processes established pursuant to this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>are implemented with uniformity throughout the agency, to the extent practicable;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>are implemented only after granting due consideration to the use or partial use, as appropriate, of existing electronic commerce and electronic data interchange systems and infrastructures such the Federal acquisition computer network architecture known as FACNET;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>facilitate access to Federal Government procurement opportunities, including opportunities for small business concerns, socially and economically disadvantaged small business concerns, and business concerns owned predominantly by women; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>ensure that any notice of agency requirements or agency solicitation for contract opportunities is provided in a form that allows convenient and universal user access through a single, Government-wide point of entry.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Implementation</inline>.—</heading><chapeau>The Administrator shall, in carrying out the requirements of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>issue policies to promote, to the maximum extent practicable, uniform implementation of this section by executive agencies, with due regard for differences in program requirements among agencies that may require departures from uniform procedures and processes in appropriate cases, when warranted because of the agency mission;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>ensure that the head of each executive agency complies with the requirements of subsection (c) with respect to the agency systems, technologies, procedures, and processes established pursuant to this section; and<page identifier="/us/stat/111/1848">111 STAT. 1848</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>consult with the heads of appropriate Federal agencies with applicable technical and functional expertise, including the Office of Information and Regulatory Affairs, the National Institute of Standards and Technology, the General Services Administration, and the Department of Defense.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Report</inline>.—</heading><chapeau>Not later than March 1, 1998, and every year afterward through 2003, the Administrator shall submit to Congress a report setting forth in detail the progress made in implementing the requirements of this section. The report shall include the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>A strategic plan for the implementation of a Government-wide electronic commerce capability.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>An agency-by-agency summary of implementation of the requirements of subsection (c), including timetables, as appropriate, addressing when individual agencies will come into full compliance.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>A specific assessment of compliance with the requirement in subsection (c) to provide universal public access through a single, Government-wide point of entry.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>Beginning with the report submitted on March 1, 1999, an agency-by-agency summary of the volume and dollar value of transactions that were conducted using electronic commerce methods during the previous calendar year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><content>A discussion of possible incremental changes to the electronic commerce capability referred to in subsection (c)(4) to increase the level of government contract information available to the private sector, including an assessment of the advisability of including contract award information in the electronic commerce functional standard.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f) </num><heading><inline class="smallCaps">Electronic Commerce Defined</inline>.—</heading><content>For the purposes of this section, the term ‘electronic commerce’ means electronic techniques for accomplishing business transactions, including electronic mail or messaging, World Wide Web technology, electronic bulletin boards, purchase cards, electronic funds transfers, and electronic data interchange.”.</content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Repeal of Requirements for Implementation of FACNET Capability</inline>.—</heading><content>Section 30A of the Office of Federal Procurement Policy Act (41 U.S.C. 426a) is repealed.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Repeal of Requirement for GAO Report</inline>.—</heading><content>Section 9004 of the Federal Acquisition Streamlining Act of 1994 (41 U.S.C. 426a note) is repealed.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Repeal of Condition for Use of Simplified Acquisition Procedures</inline>.—</heading><chapeau>Section 31 of the Office of Federal Procurement Policy Act (41 U.S.C. 427) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out subsection (e); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by redesignating subsections (f) and (g) as subsections (e) and (f), respectively.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Amendments to Procurement Notice Requirements</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>Section 8(g)(1) of the Small Business Act (15 U.S.C. 637(g)(1)) is amended—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>by striking out subparagraphs (A) and (B);</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>by redesignating subparagraphs (C), (D), (E), (F), (G), and (H) as subparagraphs (B), (C), (D), (E), (F), and (G), respectively; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><content>by inserting before subparagraph (B), as so redesignated, the following new subparagraph (A):<page identifier="/us/stat/111/1849">111 STAT. 1849</page> <quotedContent> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><chapeau>the proposed procurement is for an amount not greater than the simplified acquisition threshold and is to be conducted by—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>using widespread electronic public notice of the solicitation in a form that allows convenient and universal user access through a single, Government-wide point of entry; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>permitting the public to respond to the solicitation electronically.”.</content></clause> </subparagraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>Section 18(c)(1) of the Office of Federal Procurement Policy Act (41 U.S.C. 416(c)(1)) is amended—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>by striking out subparagraphs (A) and (B);</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>by redesignating subparagraphs (C), (D), (E), (F), (G), and (H) as subparagraphs (B), (C), (D), (E), (F), and (G), respectively; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><content>by inserting before subparagraph (B), as so redesignated, the following new subparagraph (A): <quotedContent> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><chapeau>the proposed procurement is for an amount not greater than the simplified acquisition threshold and is to be conducted by—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>using widespread electronic public notice of the solicitation in a form that allows convenient and universal user access through a single, Government-wide point of entry; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>permitting the public to respond to the solicitation electronically.”.</content></clause> </subparagraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><content>The amendments made by paragraphs (1) and (2) shall<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s637">15 USC 637 note</ref>.</p></sidenote> be implemented in a manner consistent with any applicable international agreements.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Conforming and Technical Amendments</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>Section 5061 of the Federal Acquisition Streamlining Act of 1994 (41 U.S.C. 413 note) is amended—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><chapeau>in subsection (c)(4)—</chapeau> <clause class="indent2 fontsize10"><num value="i">(i) </num><content>by striking out “the Federal acquisition computer network (‘FACNET’)” and inserting in lieu thereof “the electronic commerce”; and</content></clause> <clause class="indent2 fontsize10"><num value="ii">(ii) </num><content>by striking out “(as added by section 9001)”; and</content></clause> </subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>in subsection (e)(9)(A), by striking out “, or by dissemination through FACNET,”.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>Section 5401 of the Clinger-Cohen Act of 1996 (divisions D and E of Public Law 104–106; 40 U.S.C. 1501) is amended—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><chapeau>in subsection (a)—</chapeau> <clause class="indent2 fontsize10"><num value="i">(i) </num><content>by striking out “through the Federal Acquisition Computer Network (in this section referred to as ‘FACNET’)”; and</content></clause> <clause class="indent2 fontsize10"><num value="ii">(ii) </num><content>by striking out the last sentence;</content></clause> </subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><chapeau>in subsection (b)—</chapeau> <clause class="indent2 fontsize10"><num value="i">(i) </num><content>by striking out “<inline class="smallCaps">Additional FACNET Functions</inline>.—” and all that follows through “(41 U.S.C. 426(b)), the FACNET architecture” and inserting in lieu thereof “FUNCTIONS.—(1) The system for providing on-line computer access”; and</content></clause> <clause class="indent2 fontsize10"><num value="ii">(ii) </num><content>in paragraph (2), by striking out “The FACNET architecture” and inserting in lieu thereof “The system for providing on-line computer access”;<page identifier="/us/stat/111/1850">111 STAT. 1850</page></content></clause> </subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><content>in subsection (c)(1), by striking out “the FACNET architecture” and inserting in lieu thereof “the system for providing on-line computer access”; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="D">(D) </num><content>by striking out subsection (d).</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><subparagraph class="inline"><num value="A">(A) </num><content>Section 2302c of title 10, United States Code, is amended to read as follows: <quotedContent> <section> <num value="2302c">“§ 2302c. </num><heading>Implementation of electronic commerce capability</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Implementation of Electronic Commerce Capability</inline>.—</heading><paragraph class="inline"><content>(1) The head of each agency named in paragraphs (1), (5), and (6) shall implement the electronic commerce capability required by section 30 of the Office of Federal Procurement Policy Act (41 U.S.C. 426).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The Secretary of Defense shall act through the Under Secretary of Defense for Acquisition and Technology to implement the capability within the Department of Defense.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>In implementing the electronic commerce capability pursuant to paragraph (1), the head of an agency referred to in paragraph (1) shall consult with the Administrator for Federal Procurement Policy.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Designation of Agency Official</inline>.—</heading><content>The head of each agency named in paragraph (5) or (6) of section 2303 of this title shall designate a program manager to implement the electronic commerce capability for that agency. The program manager shall report directly to an official at a level not lower than the senior procurement executive designated for the agency under section 16(3) of the Office of Federal Procurement Policy Act (41 U.S.C. 414(3)).”.</content> </subsection> </section> </quotedContent> </content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">(B) </num><content>Section 2304(g)(4) of such title is amended by striking out “31(g)” and inserting in lieu thereof “31(f)”.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="4">(4) </num><subparagraph class="inline"><num value="A">(A) </num><content>Section 302C of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 252c) is amended to read as follows: <quotedContent> <section> <num value="302C">“SEC. 302C. </num><heading>IMPLEMENTATION OF ELECTRONIC COMMERCE CAPABILITY.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Implementation of Electronic Commerce Capability</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The head of each executive agency shall implement the electronic commerce capability required by section 30 of the Office of Federal Procurement Policy Act (41 U.S.C. 426).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>In implementing the electronic commerce capability pursuant to paragraph (1), the head of an executive agency shall consult with the Administrator for Federal Procurement Policy.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Designation of Agency Official</inline>.—</heading><content>The head of each executive agency shall designate a program manager to implement the electronic commerce capability for that agency. The program manager shall report directly to an official at a level not lower than the senior procurement executive designated for the executive agency under section 16(3) of the Office of Federal Procurement Policy Act (41 U.S.C. 414(3)).”.</content> </subsection> </section> </quotedContent> </content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">(B) </num><content>Section 303(g)(5) of the Federal Property and Administrative Services Act (41 U.S.C. 253(g)(5)) is amended by striking out “31(g)” and inserting in lieu thereof “31(f)”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2302c">10 USC 2302c note</ref>.</p></sidenote><heading><inline class="smallCaps">Effective Date</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Except as provided in paragraph (2), the amendments made by this section shall take effect 180 days after the date of the enactment of this Act.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The repeal made by subsection (c) of this section shall take effect on the date of the enactment of this Act.<page identifier="/us/stat/111/1851">111 STAT. 1851</page></content></paragraph> </subsection> </section> <section> <num value="851">SEC. 851. </num><heading>CONFORMANCE OF POLICY ON PERFORMANCE BASED MANAGEMENT OF CIVILIAN ACQUISITION PROGRAMS WITH POLICY ESTABLISHED FOR DEFENSE ACQUISITION PROGRAMS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Performance Goals</inline>.—</heading><content>Section 313(a) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 263(a)) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Congressional Policy</inline>.—</heading><content>It is the policy of Congress that the head of each executive agency should achieve, on average, 90 percent of the cost, performance, and schedule goals established for major acquisition programs of the agency.”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Conforming Amendment to Reporting Requirement</inline>.—</heading><content>Section 6(k) of the Office of Federal Procurement Policy Act (41 U.S.C. 405(k)) is amended by inserting “<quotedText>regarding major acquisitions that is</quotedText>” in the first sentence after “policy”.</content> </subsection> </section> <section> <num value="852">SEC. 852. </num><heading>MODIFICATION OF PROCESS REQUIREMENTS FOR THE SOLUTIONS-BASED CONTRACTING PILOT PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Source Selection</inline>.—</heading><chapeau>Paragraph (9) of section 5312(c) of the Clinger-Cohen Act of 1996 (divisions D and E of Public Law 104–106; 40 U.S.C. 1492(c)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subparagraph (A), by striking out “, and ranking of alternative sources,” and inserting in lieu thereof “or sources,”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>in subparagraph (B)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>in the matter preceding clause (i), by inserting “<quotedText>(or a longer period, if approved by the Administrator)</quotedText>” after “30 to 60 days”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>in clause (i), by inserting “<quotedText>or sources</quotedText>” after “source”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>in clause (ii), by striking out “that source” and inserting in lieu thereof “the source whose offer is determined to be most advantageous to the Government”; and (3) in subparagraph (C), by striking out “with alternative sources (in the order ranked)”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Time Management Discipline</inline>.—</heading><content>Paragraph (12) of such section is amended by inserting before the period at the end the following: “, except that the Administrator may approve the application of a longer standard period”.</content> </subsection> </section> <section> <num value="853">SEC. 853. </num><heading>GUIDANCE AND STANDARDS FOR DEFENSE ACQUISITION WORKFORCE TRAINING REQUIREMENTS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1723">10 USC 1723 note</ref>.</p></sidenote> <content>The Secretary of Defense shall develop appropriate guidance and standards to ensure that the Department of Defense will continue, where appropriate and cost-effective, to enter into contracts for the training requirements of sections 1723, 1724, and 1735 of title 10, United States Code, while maintaining appropriate control over the content and quality of such training.</content> </section> <section> <num value="854">SEC. 854. </num><heading>STUDY AND REPORT TO CONGRESS ASSESSING DEPENDENCE ON FOREIGN SOURCES FOR RESISTORS AND CAPACITORS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Study</inline>.—</heading><content>The Secretary of Defense shall conduct a study of the capacitor and resistor industries in the United States and the degree of United States dependence on foreign sources for resistors and capacitors.<page identifier="/us/stat/111/1852">111 STAT. 1852</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Report</inline>.—</heading><chapeau>Not later than May 1, 1998, the Secretary shall submit to Congress a report on the results of the study under subsection (a). The report shall include the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>An assessment of the industrial base for the production of resistors and capacitors within the United States and a projection of any changes in that base that are likely to occur after the implementation of relevant tariff reductions required by the Information Technology Agreement entered into at the World Trade Organization Ministerial in Singapore in December 1996.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>An assessment of the level of dependence on foreign sources for procurement of resistors and capacitors and a projection of the level of dependence on foreign sources that is likely to occur after the implementation of relevant tariff reductions required by the Information Technology Agreement.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The implications for the national security of the United States of the projections reported under paragraphs (1) and (2).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Recommendations for appropriate changes, if any, in defense procurement policies or other Federal policies based on such implications.</content></paragraph> </subsection> </section> <section> <num value="855">SEC. 855. </num><heading>DEPARTMENT OF DEFENSE AND FEDERAL PRISON INDUSTRIES JOINT STUDY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Study of Existing Procurement Procedures</inline>.—</heading><content>The Secretary of Defense and the Director of Federal Prison Industries shall jointly conduct a study of the procurement procedures, regulations, and statutes that govern procurement transactions between the Department of Defense and Federal Prison Industries.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Report</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary and the Director shall, not later than 180 days after the date of the enactment of this Act, submit to the committees listed in paragraph (2) a report containing the findings of the study and recommendations on the means to improve the efficiency and reduce the cost of transactions described in subsection (a).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>The committees referred to in paragraph (1) are the following:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>The Committee on Armed Services and the Committee on the Judiciary of the Senate.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>The Committee on National Security and the Committee on the Judiciary of the House of Representatives.</content></subparagraph> </paragraph> </subsection> </section> </subtitle> <num value="IX">TITLE IX—</num><heading>DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT</heading> <toc> <referenceItem role="subtitle"><designator>Subtitle A—</designator><label>Department of Defense Positions and Organizations and Other General Matters</label></referenceItem> <referenceItem role="section"><designator>Sec. 902.</designator> <label>Use of CINC Initiative Fund for force protection.</label></referenceItem> <referenceItem role="section"><designator>Sec. 903.</designator> <label>Revision to required frequency for provision of policy guidance for contingency plans.</label></referenceItem> <referenceItem role="section"><designator>Sec. 904.</designator> <label>Annual justification for Department of Defense advisory committees.</label></referenceItem> <referenceItem role="section"><designator>Sec. 905.</designator> <label>Airborne reconnaissance management.</label></referenceItem> <referenceItem role="section"><designator>Sec. 906.</designator> <label>Termination of the Armed Services Patent Advisory Board.</label></referenceItem> <referenceItem role="section"><designator>Sec. 907.</designator> <label>Coordination of Department of Defense criminal investigations and audits.<page identifier="/us/stat/111/1853">111 STAT. 1853</page></label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle B—</designator><label>Department of Defense Personnel Management</label></referenceItem> <referenceItem role="section"><designator>Sec. 911.</designator> <label>Reduction in personnel assigned to management headquarters and headquarters support activities.</label></referenceItem> <referenceItem role="section"><designator>Sec. 912.</designator> <label>Defense acquisition workforce.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle C—</designator><label>Department of Defense Schools and Centers</label></referenceItem> <referenceItem role="section"><designator>Sec. 921.</designator> <label>Professional military education schools.</label></referenceItem> <referenceItem role="section"><designator>Sec. 922.</designator> <label>Center for Hemispheric Defense Studies.</label></referenceItem> <referenceItem role="section"><designator>Sec. 923.</designator> <label>Correction to reference to George C. Marshall European Center for Security Studies.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle D—</designator><label>Department of Defense Intelligence-Related Matters</label></referenceItem> <referenceItem role="section"><designator>Sec. 931.</designator> <label>Transfer of certain military department programs from TIARA budget aggregation.</label></referenceItem> <referenceItem role="section"><designator>Sec. 932.</designator> <label>Report on coordination of access of commanders and deployed units to intelligence collected and analyzed by the intelligence community.</label></referenceItem> <referenceItem role="section"><designator>Sec. 933.</designator> <label>Protection of imagery, imagery intelligence, and geospatial information and data.</label></referenceItem> <referenceItem role="section"><designator>Sec. 934.</designator> <label>POW/MIA intelligence analysis.</label></referenceItem> </toc> <subtitle> <num value="A">Subtitle A—</num><heading>Department of Defense Positions and Organizations and Other General Matters</heading> <section> <num value="901">SEC. 901. </num><heading>ASSISTANTS TO THE CHAIRMAN OF THE JOINT CHIEFS OF STAFF FOR NATIONAL GUARD MATTERS AND FOR RESERVE MATTERS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s155">10 USC 155 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Establishment of Positions</inline>.—</heading><chapeau>The Secretary of Defense shall establish the following positions within the Joint Staff:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Assistant to the Chairman of the Joint Chiefs of Staff for National Guard Matters.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Assistant to the Chairman of the Joint Chiefs of Staff for Reserve Matters.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Selection</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>The Assistant to the Chairman of the Joint Chiefs of Staff for National Guard Matters shall be selected by the Chairman from officers of the Army National Guard of the United States or the Air Guard of the United States who—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>are recommended for such selection by their respective Governors or, in the case of the District of Columbia, the commanding general of the District of Columbia National Guard;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>have had at least 10 years of federally recognized commissioned service in the National Guard; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><content>are in a grade above the grade of colonel.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>The Assistant to the Chairman of the Joint Chiefs of Staff for Reserve Matters shall be selected by the Chairman from officers of the Army Reserve, the Naval Reserve, the Marine Corps Reserve, or the Air Force Reserve who—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>are recommended for such selection by the Secretary of the military department concerned;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>have had at least 10 years of commissioned service in their reserve component; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><content>are in a grade above the grade of colonel or, in the case of the Naval Reserve, captain.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Term of Office</inline>.—</heading><content>Each Assistant to the Chairman under subsection (a) serves at the pleasure of the Chairman for a term of two years and may be continued in that assignment in the same manner for one additional term. However, in time of war there is no limit on the number of terms.<page identifier="/us/stat/111/1854">111 STAT. 1854</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Grade</inline>.—</heading><content>Each Assistant to the Chairman, while so serving, holds the grade of major general or, in the case of the Naval Reserve, rear admiral. Each such officer shall be considered to be serving in a position external to that officer’s Armed Force for purposes of section 721 of title 10, United States Code, as added by section 501(a).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Duties</inline>.—</heading><content>The Assistant to the Chairman for National Guard Matters is an adviser to the Chairman on matters relating to the National Guard and performs the duties prescribed for that position by the Chairman. The Assistant to the Chairman for Reserve Matters is an adviser to the Chairman on matters relating to the reserves and performs the duties prescribed for that position by the Chairman.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Other Reserve Component Representation on Joint Staff</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of Defense, in consultation with the Chairman of the Joint Chiefs, shall develop appropriate policy guidance to ensure that, to the maximum extent practicable, the level of reserve component officer representation within the Joint Staff is commensurate with the significant role of the reserve components within the Total Force.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote><content>Not later than March 1, 1998, the Secretary shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report describing the steps taken and being taken to implement this subsection.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num><heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The positions specified in subsection (a) shall be established by the Secretary of Defense not later than 60 days after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="902">SEC. 902. </num><heading>USE OF CINC INITIATIVE FUND FOR FORCE PROTECTION.</heading> <content>Section 166a(b) of title 10, United States Code, is amended by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="9">“(9) </num><content>Force protection”.</content></paragraph> </quotedContent> </content></section> <section> <num value="903">SEC. 903. </num><heading>REVISION TO REQUIRED FREQUENCY FOR PROVISION OF POLICY GUIDANCE FOR CONTINGENCY PLANS.</heading> <chapeau>Section 113(g)(2) of title 10, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in the first sentence, by striking out “annually”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in the second sentence, by inserting “<quotedText>be provided every two years or more frequently as needed and shall</quotedText>” after “Such guidance shall”.</content></paragraph> </section> <section> <num value="904">SEC. 904. </num><heading>ANNUAL JUSTIFICATION FOR DEPARTMENT OF DEFENSE ADVISORY COMMITTEES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Annual Justification Required</inline>.—</heading><content>Chapter 7 of title 10, United States Code, is amended by adding after section 182, as added by section 382(a)(1), the following new section: <quotedContent> <section> <num value="183">“§ 183. </num><heading>Advisory committees: annual justification required</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Annual Report</inline>.—</heading><chapeau>The Secretary of Defense shall include in the annual report of the Secretary under section 113(c) of this title a report on advisory committees of the Department of Defense. In each such report, the Secretary shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>identify each advisory committee that the Secretary proposes to support, or that the Secretary is required by law or direction from the President to support, during the next fiscal year; and<page identifier="/us/stat/111/1855">111 STAT. 1855</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><chapeau>for each committee identified under paragraph (1), set forth—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>the justification or requirement for that committee; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>the projected cost to the Department of Defense to support that committee during the next fiscal year.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><content>Advisory Committee Defined.—In this section, the term ‘advisory committee’ means an entity that is subject to the provisions of the Federal Advisory Committee Act (5 U.S.C. App.).”.</content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections at the beginning of such chapter is amended by adding after the item relating to section 182, as added by section 382(a)(2), the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“183.</designator> <label>Advisory committees: annual justification required.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="905">SEC. 905. </num><heading>AIRBORNE RECONNAISSANCE MANAGEMENT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Reorganization of Defense Airborne Reconnaissance Management</inline>.—</heading><content>Not later than September 30, 1998, the Secretary of Defense shall reorganize the management of defense airborne reconnaissance within the Department of Defense in accordance with the plan developed under subsection (b).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Plan and Report</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>The Secretary of Defense shall develop a plan to reorganize the following organizations by transferring functions as required under subsections (c) and (d):</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>The organization within the Department of Defense that is subordinate to the Under Secretary of Defense for Acquisition and Technology and known as the Defense Airborne Reconnaissance Office.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>The organization within the Department of Defense that is subordinate to the Secretary of the Navy and known as the Unmanned Aerial Vehicle Joint Program Office.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>The Secretary shall submit to the congressional defense committees a report containing—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>the plan developed under paragraph (1); and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>an explanation of how the plan addresses the findings and recommendations in the final report of the Task Force on Defense Reform (established by the Secretary of Defense on May 14, 1997, and headed by the Deputy Secretary of Defense).</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><content>The plan under paragraph (1) shall be developed, and the report under paragraph (2) shall be submitted, not later than March 1, 1998.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Transfer of Certain Functions to Secretaries of Military Departments</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Not later than September 30, 1998, the Secretary of Defense shall transfer to the Secretaries of the military departments those functions specified in paragraph (2) that were performed on the day before the date of the enactment of this Act by the Defense Airborne Reconnaissance Office and the Unmanned Aerial Vehicle Joint Program Office.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The functions referred to in paragraph (1) are the functions of the Defense Airborne Reconnaissance Office and the Unmanned Aerial Vehicle Joint Program Office relating to their responsibilities for acquisition of systems, budgeting, program management (for research, development, test, and evaluation, for procurement, for life-cycle support, and for operations), and related responsibilities for individual airborne reconnaissance programs.<page identifier="/us/stat/111/1856">111 STAT. 1856</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Transfer of Certain Functions to Defense Airborne Reconnaissance Office</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Not later than September 30, 1998, the Secretary of Defense shall transfer to the Defense Airborne Reconnaissance Office those functions specified in paragraph (2) that were performed on the day before the date of the enactment of this Act by the Unmanned Aerial Vehicle Joint Program Office.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The functions referred to in paragraph (1) are the functions of the Unmanned Aerial Vehicle Joint Program Office relating to its responsibilities for management and oversight of defense airborne reconnaissance architecture, requirements, and system interfaces (other than the responsibilities specified in subsection (c)(2)).</content></paragraph> </subsection> </section> <section> <num value="906">SEC. 906. </num><heading>TERMINATION OF THE ARMED SERVICES PATENT ADVISORY BOARD.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Termination of Board</inline>.—</heading><content>The organization within the Department of Defense known as the Armed Services Patent Advisory Board is terminated. No funds available for the Department of Defense may be used for the operation of that Board after the effective date specified in subsection (c).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Transfer of Functions</inline>.—</heading><content>All functions performed on the day before the date of the enactment of this Act by the Armed Services Patent Advisory Board (including performance of the responsibilities of the Department of Defense for security review of patent applications under chapter 17 of title 35, United States Code) shall be transferred to the Defense Technology Security Administration.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>Subsection (a) shall take effect at the end of the 120-day period beginning on the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="907">SEC. 907. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s113">10 USC 113 note</ref>.</p></sidenote><heading>COORDINATION OF DEPARTMENT OF DEFENSE CRIMINAL INVESTIGATIONS AND AUDITS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Military Department Criminal Investigative Organizations</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The heads of the military department criminal investigative organizations shall take such action as may be practicable to conserve the limited resources available to the military department criminal investigative organizations by sharing personnel, expertise, infrastructure, training, equipment, software, and other resources.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The heads of the military department criminal investigative organizations shall meet on a regular basis to determine the manner in which and the extent to which the military department criminal investigative organizations will be able to share resources.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Defense Auditing Organizations</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The heads of the defense auditing organizations shall take such action as may be practicable to conserve the limited resources available to the defense auditing organizations by sharing personnel, expertise, infrastructure, training, equipment, software, and other resources.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The heads of the defense auditing organizations shall meet on a regular basis to determine the manner in which and the extent to which the defense auditing organizations will be able to share resources.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Implementation Plan</inline>.—</heading><content>Not later than December 31, 1997, the Secretary of Defense shall submit to Congress a plan designed to maximize the resources available to the military department criminal investigative organizations and the defense auditing organizations, as required by this section.<page identifier="/us/stat/111/1857">111 STAT. 1857</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>The term “military department criminal investigative organizations” means—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the Army Criminal Investigation Command;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the Naval Criminal Investigative Service; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>the Air Force Office of Special Investigations.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>The term “defense auditing organizations” means—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the Office of the Inspector General of the Department of Defense;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the Defense Contract Audit Agency;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>the Army Audit Agency;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>the Naval Audit Service; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E) </num><content>the Air Force Audit Agency.</content> </subparagraph></paragraph> </subsection> </section> </subtitle> <subtitle> <num value="B">Subtitle B—</num><heading>Department of Defense Personnel Management</heading> <section> <num value="911">SEC. 911. </num><heading>REDUCTION IN PERSONNEL ASSIGNED TO MANAGEMENT HEADQUARTERS AND HEADQUARTERS SUPPORT ACTIVITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Chapter 3 of title 10, United States Code, is amended by adding at the end the following new section: <quotedContent> <section> <num value="130a">“§ 130a. </num><heading>Management headquarters and headquarters support activities personnel: limitation</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Limitation</inline>.—</heading><content>Effective October 1, 2002, the number of<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> management headquarters and headquarters support activities personnel in the Department of Defense may not exceed 75 percent of the baseline number.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Phased Reduction</inline>.—</heading><chapeau>The number of management headquarters and headquarters support activities personnel in the Department of Defense—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>as of October 1, 1998, may not exceed 95 percent of the baseline number;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>as of October 1, 1999, may not exceed 90 percent of the baseline number;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>as of October 1, 2000, may not exceed 85 percent of the baseline number; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>as of October 1, 2001, may not exceed 80 percent of the baseline number.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Baseline Number</inline>.—</heading><content>In this section, the term ‘baseline number’ means the number of management headquarters and headquarters support activities personnel in the Department of Defense as of October 1, 1997.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Limitation on Management Headquarters and Headquarters Support Personnel Assigned to the United States Transportation Command</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Effective October 1, 1998, the<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> number of management headquarters activities and management headquarters support activities personnel assigned to, or employed in, the United States Transportation Command may not exceed the number equal to 95 percent of the number of such personnel as of October 1, 1997.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><chapeau>For purposes of paragraph (1), the United States Transportation Command shall be considered to include the following:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>The United States Transportation Command Headquarters.<page identifier="/us/stat/111/1858">111 STAT. 1858</page></content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>The Air Mobility Command of the Air Force.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">“(C) </num><content>The Military Sealift Command of the Navy.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="D">“(D) </num><content>The Military Traffic Management Command of the Army.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="E">“(E) </num><content>The Defense Courier Service.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="F">“(F) </num><content>Any other element of the Department of Defense assigned to the United States Transportation Command.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>The Secretary of Defense may waive or suspend operation of paragraph (1) in the event of a war or national emergency.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Management Headquarters and Headquarters Support Activities Personnel Defined</inline>.—</heading><chapeau>In this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>The term ‘management headquarters and headquarters support activities personnel’ means military and civilian personnel of the Department of Defense who are assigned to, or employed in, functions in management headquarters activities or in management headquarters support activities.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The terms ‘management headquarters activities’ and ‘management headquarters support activities’ have the meanings given those terms in Department of Defense Directive 5100.73, entitled ‘Department of Defense Management Headquarters and Headquarters Support Activities’, as in effect on November 12, 1996.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f) </num><heading><inline class="smallCaps">Limitation on Reassignment of Functions</inline>.—</heading><content>In carrying out reductions in the number of personnel assigned to, or employed in, management headquarters and headquarters support activities in order to comply with this section, the Secretary of Defense and the Secretaries of the military departments may not reassign functions in order to evade the requirements of this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g) </num><heading><inline class="smallCaps">Flexibility</inline>.—</heading><content>If the Secretary of Defense determines, and certifies to Congress, that the limitation in subsection (b) with respect to any fiscal year would adversely affect United States national security, the Secretary may waive the limitation under that subsection with respect to that fiscal year. If the Secretary of Defense determines, and certifies to Congress, that the limitation in subsection (a) during fiscal year 2001 would adversely affect United States national security, the Secretary may waive the limitation under that subsection with respect to that fiscal year. The authority under this subsection may be used only once, with respect to a single fiscal year.”.</content> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of such chapter is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“130a.</designator> <label>Management headquarters and headquarters support activities personnel: limitation.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s130a">10 USC 130a note</ref>.</p></sidenote><heading><inline class="smallCaps">Implementation Report</inline>.—</heading><chapeau>Not later than January 15, 1998, the Secretary of Defense shall submit to Congress a report—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>containing a plan to achieve the personnel reductions required by section 130a of title 10, United States Code, as added by subsection (a); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>including the recommendations of the Secretary regarding—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the revision, replacement, or augmentation of Department of Defense Directive 5100.73, entitled “Department of Defense Management Headquarters and Headquarters Support Activities”, as in effect on November 12, 1996; and<page identifier="/us/stat/111/1859">111 STAT. 1859</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the revision of the definitions of the terms “management headquarters activities” and “management headquarters support activities” under that Directive so that those terms apply uniformly throughout the Department of Defense.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Duties of Task Force on Defense Reform To Include Consideration Of Management Headquarters Activities</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of Defense shall require that the areas of study of the Task Force on Defense Reform (established by the Secretary of Defense on May 14, 1997, and headed by the Deputy Secretary of Defense) include an examination of the missions, functions, and responsibilities of the various management headquarters activities and management headquarters support activities of the Department of Defense. In carrying out that examination of those activities, the Task Force shall identify areas of duplication in those activities and recommend to the Secretary options to streamline, reduce, and eliminate redundancies.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>The examination of the missions, functions, and responsibilities of the various management headquarters activities and management headquarters support activities of the Department of Defense under paragraph (1) shall include the following:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>An assessment of benefits of consolidation or selected elimination of Department of Defense management headquarters activities and management headquarters support activities.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>An assessment of the opportunities to streamline the management headquarters and management headquarters support infrastructure that were realized as a result of the enactment of the Federal Acquisition Streamlining Act of 1994 (Public Law 103–355) and the Clinger-Cohen Act of 1996 (divisions D and E of Public Law 104–106) or as result of other management reform initiatives implemented administratively during the period from 1993 through 1997.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><content>An assessment of such other options for streamlining or restructuring the management headquarters and management headquarters support infrastructure as the Task Force considers appropriate and as can be carried out under existing provisions of law.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><content>Not later than March 1, 1998, the Secretary of Defense<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> shall submit to Congress a report on the results of the examination by the Task Force under this subsection. The Secretary shall include in the report any report to the Secretary from the Task Force with respect to the matters described in paragraphs (1) and (2).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Codification of Prior Permanent Limitation on OSD Personnel</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>Chapter 4 of title 10, United States Code, is amended by adding at the end a new section 143 consisting of—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>a heading as follows: <quotedContent> <section> <num value="143">“§ 143. </num><heading>Office of the Secretary of Defense personnel: limitation”; and</heading> </section> </quotedContent> </content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>a text consisting of the text of subsections (a) through (f) of section 903 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2617).</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of such chapter is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“143.</designator> <label>Office of the Secretary of Defense personnel: limitation.”.<page identifier="/us/stat/111/1860">111 STAT. 1860</page></label></referenceItem> </toc> </quotedContent> </content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><content>Section 903 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2617) is repealed.</content></paragraph> </subsection> </section> <section> <num value="912">SEC. 912. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s131">10 USC 131 note</ref>.</p></sidenote><heading>DEFENSE ACQUISITION WORKFORCE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Reduction of Defense Acquisition Workforce</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of Defense shall accomplish reductions in defense acquisition personnel positions during fiscal year 1998 so that the total number of such personnel as of October 1, 1998, is less than the total number of such personnel as of October 1, 1997, by at least the applicable number determined under paragraph (2).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>The applicable number for purposes of paragraph (1) is 25,000. However, the Secretary of Defense may specify a lower number, which may not be less than 10,000, as the applicable number for purposes of paragraph (1) if the Secretary determines, and certifies to Congress not later than June 1, 1998, that an applicable number greater than the number specified by the Secretary would be inconsistent with the cost-effective management of the defense acquisition system to obtain best value equipment and would adversely affect military readiness.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>The Secretary shall include with such a certification a detailed explanation of each of the matters certified.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><content>The authority of the Secretary under subparagraph (A) may only be delegated to the Deputy Secretary of Defense.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><content>For purposes of this subsection, the term “defense acquisition personnel” means military and civilian personnel (other than civilian personnel who are employed at a maintenance depot) who are assigned to, or employed in, acquisition organizations of the Department of Defense (as specified in Department of Defense Instruction numbered 5000.58 dated January 14, 1992).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Report on Specific Acquisition Positions Previously Eliminated</inline>.—</heading><content>Not later than 30 days after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report on reductions in the defense acquisition workforce made since fiscal year 1989. The report shall show aggregate reductions by fiscal year and shall show for each fiscal year reductions identified by specific job title, classification, or position. The report shall also identify those reductions carried out pursuant to law (and how the Secretary implemented any statutory requirement for such reductions, including definition of the workforce subject to the reduction) and those reductions carried out as a result of base closures and realignments under the so-called BRAC process. The Secretary shall include in the report a definition of the term “defense acquisition workforce” that is to be applied uniformly throughout the Department of Defense.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote><heading><inline class="smallCaps">Implementation Plan To Streamline and Improve Acquisition Organizations</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Not later than April 1, 1998, the Secretary of Defense shall submit to Congress a report containing a plan to streamline the acquisition organizations, workforce, and infrastructure of the Department of Defense. The Secretary shall include with the report a detailed discussion of the recommendations of the Secretary based on the review under subsection (d) and the assessment of the Task Force on Defense Reform pursuant to subsection (e), together with a request for the enactment of any legislative changes necessary for implementation of the plan. The Secretary shall include in the report the results of the review under subsection (d) and the independent assessment of the Task Force on Defense Reform pursuant to subsection (e).<page identifier="/us/stat/111/1861">111 STAT. 1861</page></content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>In carrying out this subsection and subsection (d), the Secretary of Defense shall formally consult with the Chairman of the Joint Chiefs of Staff, the Director of Program Analysis and Evaluation, the Under Secretary of Defense (Comptroller), and the Under Secretary for Acquisition and Technology.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Review of Acquisition Organizations and Functions</inline>.—</heading><chapeau>The Secretary of Defense shall conduct a review of the organizations and functions of the Department of Defense acquisition activities and of the personnel required to carry out those functions. The review shall identify the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Opportunities for cross-service, cross-functional arrangements within the military services and defense agencies.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Specific areas of overlap, duplication, and redundancy among the various acquisition organizations.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Opportunities to further streamline acquisition processes.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Benefits of an enhanced Joint Requirements Oversight Council in the acquisition process.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Alternative consolidation options for acquisition organizations.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>Alternative methods for performing industry oversight and quality assurance.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>Alternative options to shorten the procurement cycle.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>Alternative acquisition infrastructure reduction options within current authorities.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><content>Alternative organizational arrangements that capitalize on core acquisition competencies among the military services and defense agencies.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10) </num><content>Future acquisition personnel requirements of the Department.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="11">(11) </num><content>Adequacy of the Program, Plans, and Budgeting System in fulfilling current and future acquisition needs of the Department.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="12">(12) </num><content>Effect of technology and advanced management tools in the future acquisition system.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="13">(13) </num><content>Applicability of more flexible alternative approaches to the current civil service system for the acquisition workforce.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="14">(14) </num><content>Adequacy of Department of Defense Instruction numbered 5000.58 dated January 14, 1992.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Duties of Task Force on Defense Reform To Include Consideration Of Acquisition Organizations</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of Defense shall require that the areas of study of the Task Force on Defense Reform (established by the Secretary of Defense on May 14, 1997, and headed by the Deputy Secretary of Defense) include an examination of the missions, functions, and responsibilities of the various acquisition organizations of the Department of Defense, including the acquisition workforce of the Department. In carrying out that examination of those organizations and that workforce, the Task Force shall identify areas of duplication in defense acquisition organization and recommend to the Secretary options to streamline, reduce, and eliminate redundancies.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>The examination of the missions, functions, and responsibilities of the various acquisition organizations of the Department of Defense under paragraph (1) shall include the following:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>An assessment of benefits of consolidation or selected elimination of Department of Defense acquisition organizations.<page identifier="/us/stat/111/1862">111 STAT. 1862</page></content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>An assessment of the opportunities to streamline the defense acquisition infrastructure that were realized as a result of the enactment of the Federal Acquisition Streamlining Act of 1994 (Public Law 103–355) and the Clinger-Cohen Act of 1996 (divisions D and E of Public Law 104–106) or as result of other acquisition reform initiatives implemented administratively during the period from 1993 through 1997.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><content>An assessment of such other options for streamlining or restructuring the defense acquisition infrastructure as the Task Force considers appropriate and as can be carried out under existing provisions of law.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote><content>Not later than March 1, 1998, the Task Force shall submit to the Secretary a report on the results of its review of the acquisition organizations of the Department of Defense, including any recommendations of the Task Force for improvements to those organizations.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Technical Reference Correction</inline>.—</heading><content>Section 1721(c) of title 10, United States Code, is amended by striking out “November 25, 1988” and inserting in lieu thereof “November 12, 1996”.</content> </subsection> </section> </subtitle> <subtitle> <num value="C">Subtitle C—</num><heading>Department of Defense Schools and Centers</heading> <section> <num value="921">SEC. 921. </num><heading>PROFESSIONAL MILITARY EDUCATION SCHOOLS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Component Institutions of the National Defense University</inline>.—</heading><paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Chapter 108 of title 10, United States Code, is amended by adding at the end the following new section: <quotedContent><section> <num value="2165">“§2165. </num><heading>National Defense University: component institutions</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>There is a National Defense University in the Department of Defense.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Component Institutions</inline>.—</heading><chapeau>The National Defense University consists of the following institutions:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>The National War College.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The Industrial College of the Armed Forces.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>The Armed Forces Staff College.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>The Institute for National Strategic Studies.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><content>The Information Resources Management College.”.</content></paragraph> </subsection> </section></quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of such chapter is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“2165. </designator><label>National Defense University: component institutions.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Marine Corps University as Professional Military Education School</inline>.—</heading><content>Subsection (d) of section 2162 of such title is amended to read as follows: <quotedContent> <num value="d">“(d) </num><heading><inline class="smallCaps">Professional Military Education Schools</inline>.—</heading><chapeau>This section applies to each of the following professional military education schools:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>The National Defense University.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The Army War College.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>The College of Naval Warfare.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>The Air War College.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><content>The United States Army Command and General Staff College.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6) </num><content>The College of Naval Command and Staff.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7) </num><content>The Air Command and Staff College.<page identifier="/us/stat/111/1863">111 STAT. 1863</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8) </num><content>The Marine Corps University.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Repeal of Duplicative Definition</inline>.—</heading><chapeau>Section 1595(d) of such title is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out “(1)” before “In the case of” and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking out paragraph (2).</content></paragraph> </subsection> </section> <section> <num value="922">SEC. 922. </num><heading>CENTER FOR HEMISPHERIC DEFENSE STUDIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Institution of the National Defense University</inline>.—</heading><content>Subsection (b) of section 2165 of title 10, United States Code, as added by section 921(a)(1), is amended by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="6">“(6) </num><content>The Center for Hemispheric Defense Studies.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Civilian Faculty Members</inline>.—</heading><content>Section 1595 of title 10, United States Code, is amended by striking out subsections (e) and (f) and inserting in lieu thereof the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Applicability to Director and Deputy Director at Certain Institutions</inline>.—</heading><chapeau>In addition to the persons specified in subsection (a), this section also applies with respect to the Director and the Deputy Director of the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>The George C. Marshall European Center for Security Studies.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The Asia-Pacific Center for Security Studies.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>The Center for Hemispheric Defense Studies.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> </section> <section> <num value="923">SEC. 923. </num><heading>CORRECTION TO REFERENCE TO GEORGE C. MARSHALL EUROPEAN CENTER FOR SECURITY STUDIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Correction to Reference to Name of Center</inline>.—</heading><content>Subsection (a) of section 506 of the Intelligence Authorization Act, Fiscal Year 1990 (Public Law 101–193; 8 U.S.C. 1430 note), is amended by striking out “the United States Army Russian Institute” and inserting in lieu thereof “the George C. Marshall European Center for Security Studies”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Section Heading</inline>.—</heading><content>The heading of such section is amended to read as follows: <quotedContent> <level> <heading class="centered">“<inline class="smallCaps">requirements for citizenship for staff of george c. marshall european center for security studies</inline>”.</heading> </level> </quotedContent> </content></subsection> </section> </subtitle> <subtitle> <num value="D">Subtitle D—</num><heading>Department of Defense Intelligence Matters</heading> <section> <num value="931">SEC. 931. </num><heading>TRANSFER OF CERTAIN MILITARY DEPARTMENT PROGRAMS FROM TIARA BUDGET AGGREGATION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Transfer</inline>.—</heading><content>Effective March 1, 1998, the Secretary of<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> Defense shall, for each program identified by the Secretary under subsection (c)(2), transfer the management and budgeting of funds for that program from the TIARA budget aggregation to a nonintelligence budget activity of the military department responsible for that program.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Assessment</inline>.—</heading><chapeau>The Secretary of Defense shall conduct an assessment of the policy of the Department of Defense that is used for determining the programs of the Department that are included within the TIARA budget aggregation. In conducting the assessment, the Secretary—<page identifier="/us/stat/111/1864">111 STAT. 1864</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>shall consider whether the current policy is in need of revision to reflect changes in technology and battlefield use of TIARA systems;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>shall specifically consider the appropriateness of the continued inclusion in the TIARA budget aggregation of each of the programs described in subsection (e); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>may consider the appropriateness of the continued inclusion in the TIARA budget aggregation of any other program (in addition to the programs described to in subsection (e)) that as of the date of the enactment of this Act is managed and budgeted as part of the TIARA budget aggregation.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Report</inline>.—</heading><chapeau>Not later than March 1, 1998, the Secretary of Defense shall submit to Congress a report on the assessment carried out under section (b). The Secretary shall include in the report—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>a description of any proposed changes to Department of Defense policies for determining which programs are included in the TIARA budget aggregation; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>identification of each program (among the programs considered pursuant to paragraphs (2) and (3) of subsection (b)) for which the management and budgeting of funds is to be transferred under subsection (a).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Identification of Programs</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>In specifying the programs to be included on the list under subsection (c)(2), the Secretary—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>shall (except as otherwise provided pursuant to a waiver under paragraph (2)) include each program described in subsection (e); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>may include such additional programs considered in the assessment pursuant to subsection (b)(3) as the Secretary determines appropriate.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The Secretary, after considering the results of the assessment under subsection (c), may waive the applicability of paragraph (1)(A) to any program described in subsection (e). The Secretary shall include in the report under subsection (c) identification of each such program for which the Secretary has granted such a waiver and supporting rationale for each waiver.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Covered Programs</inline>.—</heading><chapeau>The programs described in this subsection are the following (each of which, as of the date of the enactment of this Act, is managed and budgeted as part of the TIARA budget aggregation):</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Each targeting or target acquisition program of the Department of Defense, including the Joint Surveillance and Target Attack Radar System (JSTARS) and the Advanced Deployable System.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Each Tactical Warning and Attack Assessment program of the Department of Defense, including the Defense Support Program, the Space-Based Infrared Program, and early warning radars.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Each tactical communications system of the Department of Defense, including the Joint Tactical Terminal.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">TIARA Budget Aggregation Defined</inline>.—</heading><content>For purposes of this section, the term “TIARA budget aggregation” means the aggregation of programs of the Department of Defense for which funds are managed and budgeted through a common designation as Tactical Intelligence and Related Activities (TIARA) of the Department of Defense.<page identifier="/us/stat/111/1865">111 STAT. 1865</page></content> </subsection> </section> <section> <num value="932">SEC. 932. </num><heading>REPORT ON COORDINATION OF ACCESS OF COMMANDERS AND DEPLOYED UNITS TO INTELLIGENCE COLLECTED AND ANALYZED BY THE INTELLIGENCE COMMUNITY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>Congress makes the following findings:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Coordination of operational intelligence support for the commanders of the combatant commands and deployed units of the Armed Forces has proven to be inadequate.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Procedures used to reconcile information among various intelligence community and Department of Defense data bases have proven to be inadequate and, being inadequate, have diminished the usefulness of that information and have precluded commanders and planners within the Armed Forces from fully benefiting from key information that should have been available to them.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Excessive compartmentalization of responsibilities and information within the Department of Defense and the other elements of the intelligence community has resulted in inaccurate analysis of important intelligence material.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Excessive restrictions on the distribution of information within the executive branch have disadvantaged units of the Armed Forces that would have benefited most from the information.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Procedures used in the Department of Defense to ensure that critical intelligence information is provided to the right combat units in a timely manner failed during the Persian Gulf War and, as a result, information about potential chemical weapons storage locations did not reach the units that eventually destroyed those storage areas.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>A recent, detailed review of the events leading to and following the destruction of chemical weapons by members of the Armed Forces at Khamisiyah, Iraq, during the Persian Gulf War has revealed a number of inadequacies in the way the Department of Defense and the other elements of the intelligence community handled, distributed, recorded, and stored intelligence information about the threat of exposure of United States forces to chemical weapons and the toxic agents in those weapons.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>The inadequacy of procedures for recording the receipt of, and reaction to, intelligence reports provided by the intelligence community to combat units of the Armed Forces during the Persian Gulf War has caused it to be impossible to analyze the failures in transmission of intelligence-related information on the location of chemical weapons at Khamisiyah, Iraq, that resulted in the demolition of chemical weapons by members of the Armed Forces unaware of the hazards to which they were exposed.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Report Requirement</inline>.—</heading><content>Not later than March 1, 1998, the Secretary of Defense shall submit to Congress a report that identifies the specific actions that have been taken or are being taken to ensure that there is adequate coordination of access of commanders of the combatant commands and deployed units of the Armed Forces to intelligence collected and analyzed by the intelligence community.<page identifier="/us/stat/111/1866">111 STAT. 1866</page></content> </subsection> </section> <section> <num value="933">SEC. 933. </num><heading>PROTECTION OF IMAGERY, IMAGERY INTELLIGENCE, AND GEOSPATIAL INFORMATION AND DATA.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Protection of Information on Capabilities</inline>.—</heading><content>Paragraph (1)(B) of section 455(b) of title 10, United States Code, is amended by inserting “<quotedText>, or capabilities,</quotedText>” after “methods”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Products Protected</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Paragraph (2) of such section is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>In this subsection, the term ‘geodetic product’ means imagery, imagery intelligence, or geospatial information.”.</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>Section 467(4) of title 10, United States Code, is amended—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>by inserting “<quotedText>and</quotedText>” at the end of subparagraph (A);</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>in subparagraph (B), by striking out “and geodetic data; and” and inserting in lieu thereof “geodetic data, and related products.”; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><content>by striking out subparagraph (C).</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="934">SEC. 934. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1501">10 USC 1501 note</ref>.</p></sidenote><heading>POW/MIA INTELLIGENCE ANALYSIS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Intelligence Analysis</inline>.—</heading><content>The Director of Central Intelligence, in consultation with the Secretary of Defense, shall provide intelligence analysis on matters concerning prisoners of war and missing persons (as defined in chapter 76 of title 10, United States Code) to all departments and agencies of the Federal Government involved in such matters.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Use of Intelligence in Analysis of POW/MIA Cases in Department of Defense</inline>.—</heading><content>The Secretary of Defense shall ensure that the Defense Prisoner of War/Missing Personnel Office of the Department of Defense takes into full account all intelligence regarding matters concerning of prisoners of war and missing persons (as defined in chapter 76 of title 10, United States Code) in analyzing cases involving such persons.</content> </subsection> </section> </subtitle> <num value="X">TITLE X—</num><heading>GENERAL PROVISIONS</heading> <toc> <referenceItem role="subtitle"><designator>Subtitle A—</designator><label>Financial Matters</label></referenceItem> <referenceItem role="section"><designator>Sec. 1001.</designator> <label>Transfer authority.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1002.</designator> <label>Incorporation of classified annex.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1003.</designator> <label>Authority for obligation of unauthorized fiscal year 1997 defense appropriations.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1004.</designator> <label>Authorization of prior emergency supplemental appropriations for fiscal year 1997.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1005.</designator> <label>Increase in fiscal year 1996 transfer authority.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1006.</designator> <label>Revision of authority for Fisher House trust funds.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1007.</designator> <label>Flexibility in financing closure of certain outstanding contracts for which a small final payment is due.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1008.</designator> <label>Biennial financial management improvement plan.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1009.</designator> <label>Estimates and requests for procurement and military construction for the reserve components.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1010.</designator> <label>Sense of Congress regarding funding for reserve component modernization not requested in President’s budget.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1011.</designator> <label>Management of working-capital funds.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1012.</designator> <label>Authority of Secretary of Defense to settle claims relating to pay, allowances, and other benefits.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1013.</designator> <label>Payment of claims by members for loss of personal property due to flooding in Red River Basin.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1014.</designator> <label>Advances for payment of public services</label></referenceItem> <referenceItem role="section"><designator>Sec. 1015.</designator> <label>United States Man and the Biosphere Program limitation.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle B—</designator><label>Naval Vessels and Shipyards</label></referenceItem> <referenceItem role="section"><designator>Sec. 1021.</designator> <label>Procedures for sale of vessels stricken from the Naval Vessel Register.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1022.</designator> <label>Authority to enter into a long-term charter for a vessel in support of the Surveillance Towed-Array Sensor (SURTASS) program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1023.</designator> <label>Transfer of two specified obsolete tugboats of the Army.<page identifier="/us/stat/111/1867">111 STAT. 1867</page></label></referenceItem> <referenceItem role="section"><designator>Sec. 1024.</designator> <label>Congressional review period with respect to transfer of ex-U.S.S. Hornet (CV–12) and ex-U.S.S. Midway (CV–41).</label></referenceItem> <referenceItem role="section"><designator>Sec. 1025.</designator> <label>Transfers of naval vessels to certain foreign countries.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1026.</designator> <label>Reports relating to export of vessels that may contain polychlorinated biphenyls.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1027.</designator> <label>Conversion of defense capability preservation authority to Navy shipbuilding capability preservation authority.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle C—</designator><label>Counter-Drug Activities</label></referenceItem> <referenceItem role="section"><designator>Sec. 1031.</designator> <label>Use of National Guard for State drug interdiction and counter-drug activities.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1032.</designator> <label>Authority to provide additional support for counter-drug activities of Mexico.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1033.</designator> <label>Authority to provide additional support for counter-drug activities of Peru and Colombia.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1034.</designator> <label>Annual report on development and deployment of narcotics detection technologies.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle D—</designator><label>Miscellaneous Report Requirements and Repeals</label></referenceItem> <referenceItem role="section"><designator>Sec. 1041.</designator> <label>Repeal of miscellaneous reporting requirements.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1042.</designator> <label>Study of transfer of modular airborne fire fighting system.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1043.</designator> <label>Overseas infrastructure requirements.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1044.</designator> <label>Additional matters for annual report on activities of the General Accounting Office.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1045.</designator> <label>Eye safety at small arms firing ranges.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1046.</designator> <label>Reports on Department of Defense procedures for investigating military aviation accidents and for notifying and assisting families of victims.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle E—</designator><label>Matters Relating to Terrorism</label></referenceItem> <referenceItem role="section"><designator>Sec. 1051.</designator> <label>Oversight of counterterrorism and antiterrorism activities; report.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1052.</designator> <label>Provision of adequate troop protection equipment for Armed Forces personnel engaged in peace operations; report on antiterrorism activities and protection of personnel.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle F—</designator><label>Matters Relating to Defense Property</label></referenceItem> <referenceItem role="section"><designator>Sec. 1061.</designator> <label>Lease of nonexcess personal property of military departments.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1062.</designator> <label>Lease of nonexcess property of Defense Agencies.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1063.</designator> <label>Donation of excess chapel property to churches damaged or destroyed by arson or other acts of terrorism.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1064.</designator> <label>Authority of the Secretary of Defense concerning disposal of assets under cooperative agreements on air defense in Central Europe.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1065.</designator> <label>Sale of excess, obsolete, or unserviceable ammunition and ammunition components.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1066.</designator> <label>Transfer of B-17 aircraft to museum.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1067.</designator> <label>Report on disposal of excess and surplus materials.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle G—</designator><label>Other Matters</label></referenceItem> <referenceItem role="section"><designator>Sec. 1071.</designator> <label>Authority for special agents of the Defense Criminal Investigative Service to execute warrants and make arrests.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1072.</designator> <label>Study of investigative practices of military criminal investigative organizations relating to sex crimes.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1073.</designator> <label>Technical and clerical amendments.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1074.</designator> <label>Sustainment and operation of the Global Positioning System.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1075.</designator> <label>Protection of safety-related information voluntarily provided by air carriers.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1076.</designator> <label>National Guard Challenge Program to create opportunities for civilian youth.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1077.</designator> <label>Disqualification from certain burial-related benefits for persons convicted of capital crimes.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1078.</designator> <label>Restrictions on the use of human subjects for testing of chemical or biological agents.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1079.</designator> <label>Treatment of military flight operations.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1080.</designator> <label>Naturalization of certain foreign nationals who serve honorably in the Armed Forces during a period of conflict.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1081.</designator> <label>Applicability of certain pay authorities to members of specified independent study organizations.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1082.</designator> <label>Display of POW/MIA flag.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1083.</designator> <label>Program to commemorate 50th anniversary of the Korean conflict.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1084.</designator> <label>Commendation of members of the Armed Forces and Government civilian personnel who served during the Cold War; certificate of recognition.<page identifier="/us/stat/111/1868">111 STAT. 1868</page></label></referenceItem> <referenceItem role="section"><designator>Sec. 1085.</designator> <label>Sense of Congress on granting of statutory Federal charters.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1086.</designator> <label>Sense of Congress regarding military voting rights.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1087.</designator> <label>Designation of Bob Hope as an honorary veteran of the Armed Forces of the United States.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1088.</designator> <label>Five-year extension of aviation insurance program.</label></referenceItem> </toc> <subtitle> <num value="A">Subtitle A—</num><heading>Financial Matters</heading> <section> <num value="1001">SEC. 1001. </num><heading>TRANSFER AUTHORITY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Authority To Transfer Authorizations</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Upon determination by the Secretary of Defense that such action is necessary in the national interest, the Secretary may transfer amounts of authorizations made available to the Department of Defense in this division for fiscal year 1998 between any such authorizations for that fiscal year (or any subdivisions thereof). Amounts of authorizations so transferred shall be merged with and be available for the same purposes as the authorization to which transferred.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The total amount of authorizations that the Secretary of Defense may transfer under the authority of this section may not exceed $2,000,000,000.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Limitations</inline>.—</heading><chapeau>The authority provided by this section to transfer authorizations—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>may only be used to provide authority for items that have a higher priority than the items from which authority is transferred; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>may not be used to provide authority for an item that has been denied authorization by Congress.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Effect on Authorization Amounts</inline>.—</heading><content>A transfer made from one account to another under the authority of this section shall be deemed to increase the amount authorized for the account to which the amount is transferred by an amount equal to the amount transferred.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Notice to Congress</inline>.—</heading><content>The Secretary shall promptly notify Congress of each transfer made under subsection (a).</content> </subsection> </section> <section> <num value="1002">SEC. 1002. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s114">10 USC 114 note</ref>.</p></sidenote><heading>INCORPORATION OF CLASSIFIED ANNEX.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Status of Classified Annex</inline>.—</heading><content>The Classified Annex prepared by the committee of conference to accompany the conference report on the bill H.R. 1119 of the One Hundred Fifth Congress and transmitted to the President is hereby incorporated into this Act.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Construction With Other Provisions of Act</inline>.—</heading><content>The amounts specified in the Classified Annex are not in addition to amounts authorized to be appropriated by other provisions of this Act.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Limitation on Use of Funds</inline>.—</heading><content>Funds appropriated pursuant to an authorization contained in this Act that are made available for a program, project, or activity referred to in the Classified Annex may only be expended for such program, project, or activity in accordance with such terms, conditions, limitations, restrictions, and requirements as are set out for that program, project, or activity in the Classified Annex.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Distribution of Classified Annex</inline>.—</heading><content>The President shall provide for appropriate distribution of the Classified Annex, or of appropriate portions of the annex, within the executive branch of the Government.<page identifier="/us/stat/111/1869">111 STAT. 1869</page></content> </subsection> </section> <section> <num value="1003">SEC. 1003. </num><heading>AUTHORITY FOR OBLIGATION OF UNAUTHORIZED FISCAL YEAR 1997 DEFENSE APPROPRIATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Authority</inline>.—</heading><content>The amounts described in subsection (b) may be obligated and expended for programs, projects, and activities of the Department of Defense in accordance with fiscal year 1997 defense appropriations.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Covered Amounts</inline>.—</heading><content>The amounts referred to in subsection (a) are the amounts provided for programs, projects, and activities of the Department of Defense in fiscal year 1997 defense appropriations that are in excess of the amounts provided for such programs, projects, and activities in fiscal year 1997 defense authorizations.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For the purposes of this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Fiscal year 1997 defense appropriations</inline>.—</heading><content>The term “fiscal year 1997 defense appropriations” means amounts appropriated or otherwise made available to the Department of Defense for fiscal year 1997 in the Department of Defense Appropriations Act, 1997 (as contained in section 101(b) of Public Law 104–208).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Fiscal year 1997 defense authorizations</inline>.—</heading><content>The term “fiscal year 1997 defense authorizations” means amounts authorized to be appropriated for the Department of Defense for fiscal year 1997 in the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201).</content></paragraph> </subsection> </section> <section> <num value="1004">SEC. 1004. </num><heading>AUTHORIZATION OF PRIOR EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 1997.</heading> <content>Amounts authorized to be appropriated to the Department of Defense for fiscal year 1997 in the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201) are hereby adjusted, with respect to any such authorized amount, by the amount by which appropriations pursuant to such authorization were increased (by a supplemental appropriation) or decreased (by a rescission), or both, in the 1997 Emergency Supplemental Appropriations Act for Recovery from Natural Disasters, and for Overseas Peacekeeping Efforts, Including Those in Bosnia (Public Law 105–18).</content> </section> <section> <num value="1005">SEC. 1005. </num><heading>INCREASE IN FISCAL YEAR 1996 TRANSFER AUTHORITY.</heading> <content>Section 1001(a)(2) of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104–106; 100 Stat. 414) is amended by striking out “$2,000,000,000” and inserting in lieu thereof “$3,100,000,000”.</content> </section> <section> <num value="1006">SEC. 1006. </num><heading>REVISION OF AUTHORITY FOR FISHER HOUSE TRUST FUNDS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Correction To Eliminate Use of Term Associated With Funding Authorities</inline>.—</heading><content>Section 2221(c) of title 10, United States Code, is amended by striking out “or maintenance” each place it appears.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Corpus of Air Force Trust Fund</inline>.—</heading><content>The Secretary of the<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2221">10 USC 2221 note</ref>.</p></sidenote> Air Force shall deposit in the Fisher House Trust Fund, Department of the Air Force, an amount that the Secretary determines appropriate to establish the corpus of the fund.</content> </subsection> </section> <section> <num value="1007">SEC. 1007. </num><heading>FLEXIBILITY IN FINANCING CLOSURE OF CERTAIN OUTSTANDING CONTRACTS FOR WHICH A SMALL FINAL PAYMENT IS DUE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Closure of Outstanding Contracts</inline>.—</heading><content>The Secretary of<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> Defense may make the final payment on a contract to which this <page identifier="/us/stat/111/1870">111 STAT. 1870</page>section applies from the account established pursuant to subsection (d).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote><heading><inline class="smallCaps">Covered Contracts</inline>.—</heading><chapeau>This section applies to any contract of the Department of Defense—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>that was entered into before December 5, 1990; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>for which an unobligated balance of an appropriation that had been initially applied to the contract was canceled before December 5, 1990, pursuant to section 1552 of title 31, United States Code, as in effect before that date.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Authority Limited to Small Final Payments</inline>.—</heading><content>The Secretary may use the authority provided by this section only for a contract for which the amount of the final payment due is not greater than the micro-purchase threshold (as defined in section 32 of the Office of Federal Procurement Policy Act (41 U.S.C. 428)).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Account</inline>.—</heading><content>The Secretary may establish an account for the purposes of this section. The Secretary may from time to time transfer into the account, from funds made available to the Department of Defense for procurement or for research, development, test, and evaluation, such amounts as the Secretary determines to be needed for the purposes of the account, except that the total of such transfers may not exceed $1,000,000. Amounts in the account may be used only for the purposes of this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Closure of Account</inline>.—</heading><content>When the Secretary determines that all contracts to which this section applies have been closed and there is no further need for the account established under subsection (d), the Secretary shall close the account. Any amounts remaining in the account shall be covered into the Treasury as miscellaneous receipts.</content> </subsection> </section> <section> <num value="1008">SEC. 1008. </num><heading>BIENNIAL FINANCIAL MANAGEMENT IMPROVEMENT PLAN.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Biennial Plan</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Chapter 131 of title 10, United States Code, is amended by adding at the end the following new section: <quotedContent> <section> <num value="2222">“§ 2222. </num><heading>Biennial financial management improvement plan</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Biennial Plan Required</inline>.—</heading><content>The Secretary of Defense shall submit to Congress a biennial strategic plan for the improvement of financial management within the Department of Defense. The plan shall be submitted not later than September 30 of each even-numbered year.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Concept of Operations</inline>.—</heading><content>Each plan under subsection (a) shall include a statement of the Secretary of Defense’s concept of operations for the financial management of the Department of Defense. Each such statement shall be a clear description of the manner in which the Department’s financial management operations are carried out or will be carried out under the improvements set forth in the plan under subsection (a), including identification of operations that must be performed.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Matters To Be Addressed in Plan</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Each plan under subsection (a) shall address all aspects of financial management within the Department of Defense, including the finance systems, accounting systems, and data feeder systems of the Department that support financial functions of the Department.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>For the purposes of paragraph (1), a data feeder system is an automated or manual system from which information is derived for a financial management system or an accounting system.”.<page identifier="/us/stat/111/1871">111 STAT. 1871</page></content></paragraph> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of such chapter is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“2222.</designator> <label>Biennial financial management improvement plan.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Additional Content of First Plan</inline>.—</heading><chapeau>The first financial<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2222">10 USC 2222 note</ref>.</p></sidenote> management improvement plan submitted under section 2222 of title 10, United States Code (as added by subsection (a)), shall include the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>A description of the costs and benefits of integrating the various finance and accounting systems of the Department of Defense and reducing the total number of such systems, together with the Secretary’s assessment of the feasibility of implementing such an integration.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Identification of problems with the accuracy of data included in the finance systems, accounting systems, and data feeder systems that support financial functions of the Department of Defense, together with a description of the actions that the Secretary can take to address those problems.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Identification of weaknesses in the internal controls of the systems referred to in paragraph (2), together with a description of the actions that the Secretary can take to address those weaknesses.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>A description of actions that the Secretary can take to eliminate negative unliquidated obligations, unmatched disbursements, and in-transit disbursements and to avoid such obligations and disbursements in the future.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><chapeau>A description of the status of the efforts being undertaken in the Department to consolidate and eliminate—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>redundant or unneeded finance systems; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>redundant or unneeded accounting systems.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>A description of efforts being undertaken to consolidate or eliminate redundant personnel data systems, acquisition data systems, asset accounting systems, time and attendance systems, and other data feeder systems of the Department.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>A description of efforts being undertaken to integrate the data feeder systems of the Department with the finance and accounting systems of the Department.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>A description of problems with the organization or performance of the Operating Locations and Service Centers of the Defense Finance and Accounting Service, together with a description of the actions the Secretary can take to address those problems.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><content>A description of the costs and benefits of reorganizing the Operating Locations and Service Centers of the Defense Finance and Accounting Service according to function, together with the Secretary’s assessment of the feasibility of carrying out such a reorganization.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10) </num><content>A description of the costs and benefits of contracting for private-sector performance of specific functions currently performed by the Defense Finance and Accounting Service, together with the Secretary’s assessment of the feasibility of contracting for such performance.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="11">(11) </num><content>A description of actions that can be taken to ensure that each comptroller position (and comparable position) in the Department of Defense, whether filled by a member of the Armed Forces or by a civilian employee, is held by a person who, by reason of education, technical competence, and <page identifier="/us/stat/111/1872">111 STAT. 1872</page>experience, has the core competencies for financial management.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="12">(12) </num><content>A description of any other change in the financial management structure of the Department or revision of the financial processes and business practices of the Department that the Secretary considers necessary to improve financial management in the Department.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2222">10 USC 2222 note</ref>.</p></sidenote><heading><inline class="smallCaps">Additional Matters</inline>.—</heading><content>For each of the problems and actions identified pursuant to paragraphs (1) through (12) of subsection (b) or in any other part of the plan covered by that subsection, the Secretary shall include statements of objectives, performance measures, and schedules and shall specify the individual and organizational responsibilities.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2222">10 USC 2222 note</ref>.</p></sidenote><heading><inline class="smallCaps">Definition</inline>.—</heading><content>In subsection (b), the term “data feeder system” has the meaning given that term in subsection (c)(2) of section 2222 of title 10, United States Code, as added by subsection (a).</content> </subsection> </section> <section> <num value="1009">SEC. 1009. </num><heading>ESTIMATES AND REQUESTS FOR PROCUREMENT AND MILITARY CONSTRUCTION FOR THE RESERVE COMPONENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Detailed Presentation in Future-Years Defense Program</inline>.—</heading><chapeau>Section 10543 of title 10, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>(a) In General.—</quotedText>” before “The Secretary of Defense”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Associated Annexes</inline>.—</heading><chapeau>The associated annexes of the future-years defense program shall specify, at the same level of detail as is set forth in the annexes for the active components, the amount requested for—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>procurement of each item of equipment to be procured for each reserve component; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>each military construction project to be carried out for each reserve component, together with the location of the project.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Report</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>If the aggregate of the amounts specified in paragraphs (1) and (2) of subsection (b) for a fiscal year is less than the amount equal to 90 percent of the average authorized amount applicable for that fiscal year under paragraph (2), the Secretary of Defense shall submit to Congress a report specifying for each reserve component the additional items of equipment that would be procured, and the additional military construction projects that would be carried out, if that aggregate amount were an amount equal to such average authorized amount. The report shall be at the same level of detail as is required by subsection (b).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><chapeau>In this subsection, the term ‘average authorized amount’, with respect to a fiscal year, means the average of—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>the aggregate of the amounts authorized to be appropriated for the preceding fiscal year for the procurement of items of equipment, and for military construction, for the reserve components; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>the aggregate of the amounts authorized to be appropriated for the fiscal year preceding the fiscal year referred to in subparagraph (A) for the procurement of items of equipment, and for military construction, for the reserve components.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s10543">10 USC 10543 note</ref>.</p></sidenote><heading><inline class="smallCaps">Prohibition</inline>.—</heading><content>The level of detail provided for procurement and military construction in the future-years defense programs for fiscal years after fiscal year 1998 may not be less than the <page identifier="/us/stat/111/1873">111 STAT. 1873</page>level of detail provided for procurement and military construction in the future-years defense program for fiscal year 1998.</content> </subsection> </section> <section> <num value="1010">SEC. 1010. </num><heading>SENSE OF CONGRESS REGARDING FUNDING FOR RESERVE COMPONENT MODERNIZATION NOT REQUESTED IN PRESIDENT’S BUDGET.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Criteria</inline>.—</heading><chapeau>It is the sense of Congress that, to the maximum extent practicable, Congress should authorize appropriations for procurement of reserve component modernization equipment for a fiscal year for equipment that is not included in the budget of the President for that fiscal year only if—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>there is a requirement for that equipment that has been validated by the Joint Requirements Oversight Council;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>procurement of that equipment is included for reserve component modernization in the modernization plan of the military department concerned and is incorporated into the current future-years defense program;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>procurement of that equipment is consistent with planned use of reserve component forces under Department of Defense war plans; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>funds tor that procurement, if authorized and appropriated for that fiscal year, could be obligated during that fiscal year.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Consideration of Views of Chairman of Joint Chiefs of Staff</inline>.—</heading><content>It is further the sense of Congress that, in applying the criteria set forth in subsection (a) with respect to procurement of reserve component modernization equipment, Congress should obtain the views of the Chairman of the Joint Chiefs of Staff on whether, under Department of Defense war plans, that equipment is appropriate for procurement for, and assignment to, reserve component forces.</content> </subsection> </section> <section> <num value="1011">SEC. 1011. </num><heading>MANAGEMENT OF WORKING-CAPITAL FUNDS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Contracting for Capital Assets Procurement in Advance of Funds</inline>.—</heading><content>Section 2208 of title 10, United States Code, is amended by striking out subsection (k) and inserting in lieu thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="k">“(k) </num><paragraph class="inline"><num value="1">(1) </num><content>Subject to paragraph (2), a contract for the procurement of a capital asset financed by a working-capital fund may be awarded in advance of the availability of funds in the workingcapital fund for the procurement.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><chapeau>Paragraph (1) applies to any of the following capital assets that have a development or acquisition cost of not less than $100,000:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>An unspecified minor military construction project under section 2805(c)(1) of this title.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>Automatic data processing equipment or software.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">“(C) </num><content>Any other equipment.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="D">“(D) </num><content>Any other capital improvement.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Use of Advance Billing</inline>.—</heading><content>Such section is further amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="l">“(l) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>An advance billing of a customer of a working-capital fund may be made if the Secretary of the military department concerned submits to Congress written notification of the advance billing within 30 days after the end of the month in which the advanced billing was made. The notification shall include the following:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>The reasons for the advance billing.<page identifier="/us/stat/111/1874">111 STAT. 1874</page></content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>An analysis of the effects of the advance billing on military readiness.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">“(C) </num><content>An analysis of the effects of the advance billing on the customer.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><chapeau>The Secretary of Defense may waive the notification requirements of paragraph (1)—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>during a period war or national emergency; or</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>to the extent that the Secretary determines necessary to support a contingency operation.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><chapeau>In this subsection:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>The term ‘advance billing’, with respect to a workingcapital fund, means a billing of a customer by the fund, or a requirement for a customer to reimburse or otherwise credit the fund, for the cost of goods or services provided (or for other expenses incurred) on behalf of the customer that is rendered or imposed before the customer receives the goods or before the services have been performed.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>The term ‘customer’ means a requisitioning component or agency.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Fiscal Year Limitations</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>The total amount of advance billings for Department of the Navy working-capital funds and the Defense Business Operations Fund may not exceed—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>$1,000,000,000 for fiscal year 1998; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>$800,000,000 for fiscal year 1999.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>For purposes of paragraph (1), the term “advance billing” has the meaning given such term in section 2208(l)(3) of title 10, United States Code, as added by subsection (b).</content></paragraph> </subsection> </section> <section> <num value="1012">SEC. 1012. </num><heading>AUTHORITY OF SECRETARY OF DEFENSE TO SETTLE CLAIMS RELATING TO PAY, ALLOWANCES, AND OTHER BENEFITS.</heading> <chapeau>Section 3702(e) of title 31, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in paragraph (1), by striking out “Comptroller General” and inserting in lieu thereof “Secretary of Defense”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking out paragraph (2) and inserting in lieu thereof the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>Payment of a claim settled under paragraph (1) shall be made from an appropriation that is available, for the fiscal year in which the payment is made, for the same purpose as the appropriation to which the obligation claimed would have been charged if the obligation had been timely paid.”.</content></paragraph> </quotedContent> </content></paragraph> </section> <section> <num value="1013">SEC. 1013. </num><heading>PAYMENT OF CLAIMS BY MEMBERS FOR LOSS OF PERSONAL PROPERTY DUE TO FLOODING IN RED RIVER BASIN.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Payment Authorized</inline>.—</heading><content>Notwithstanding section 3721(e) of title 31, United States Code, the Secretary of a military department may pay the claim of a member of the Armed Forces who resided (or whose dependents resided) in the vicinity of Grand Forks Air Force Base, North Dakota, during April and May 1997 for loss and damage to personal property incurred by the member as a direct result of the flooding in the Red River Basin during such months.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2731">10 USC 2731 note</ref>.</p></sidenote><heading><inline class="smallCaps">Report on Department Policy</inline>.—</heading><content>The Secretary of Defense shall submit to Congress a report describing the Department of Defense policy regarding the payment of a claim by a member of the Armed Forces who is not assigned to quarters of the United States for losses and damage to personal property of the member incurred at the member’s residence as a result of a natural disaster. The report shall include a description of the number of such claims <page identifier="/us/stat/111/1875">111 STAT. 1875</page>received over the past 10 years, the number of claims paid, and the number of claims rejected. If the Secretary determines the Department of Defense should modify its policy in order to accept additional claims by members who are not assigned to quarters of the United States for losses and damage to personal property, the Secretary shall also include in the report any legislative changes that the Secretary considers necessary to enable the Secretary to implement the policy change.</content> </subsection> </section> <section> <num value="1014">SEC. 1014. </num><heading>ADVANCES FOR PAYMENT OF PUBLIC SERVICES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Subsection (a) of section 2396 of title 10, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out “and” at the end of paragraph (2);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking out the period at the end of paragraph (3) and inserting in lieu thereof “; and”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by adding at the end the following new paragraph: “(4) public service utilities.”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendments</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The heading of such section is amended to read as follows: <quotedContent> <section> <num value="2396">“§ 2396. </num><heading>Advances for payments for compliance with foreign laws, rent in foreign countries, tuition, public utility services, and pay and supplies of armed forces of friendly foreign countries”.</heading> </section> </quotedContent> </content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The item relating to such section in the table of sections at the beginning of chapter 141 of such title is amended to read as follows: <quotedContent> <toc> <referenceItem role="section"><designator>“2396.</designator> <label>Advances for payments for compliance with foreign laws, rent in foreign countries, tuition, public utility services, and pay and supplies of armed forces of friendly foreign countries.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> </section> <section> <num value="1015">SEC. 1015. </num><heading>UNITED STATES MAN AND THE BIOSPHERE PROGRAM LIMITATION.</heading> <content>During fiscal year 1998, the Secretary of Defense may not take any steps to carry out or support the United States Man and the Biosphere Program or any related project.</content> </section> </subtitle> <subtitle> <num value="B">Subtitle B—</num><heading>Naval Vessels and Shipyards</heading> <section> <num value="1021">SEC. 1021. </num><heading>PROCEDURES FOR SALE OF VESSELS STRICKEN FROM THE NAVAL VESSEL REGISTER.</heading> <content>Section 7305(c) of title 10, United States Code, is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Procedures for Sale</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>A vessel stricken from the Naval Vessel Register and not subject to disposal under any other law may be sold under this section.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><chapeau>In such a case, the Secretary may—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>sell the vessel to the highest acceptable bidder, regardless of the appraised value of the vessel, after publicly advertising the sale of the vessel for a period of not less than 30 days; or</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>subject to paragraph (3), sell the vessel by competitive negotiation to the acceptable offeror who submits the offer that is most advantageous to the United States (taking into account price and such other factors as the Secretary determines appropriate).<page identifier="/us/stat/111/1876">111 STAT. 1876</page></content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Publication.</p></sidenote><content>Before entering into negotiations to sell a vessel under paragraph (2)(B), the Secretary shall publish notice of the intention to do so in the Commerce Business Daily sufficiently in advance of initiating the negotiations that all interested parties are given a reasonable opportunity to prepare and submit proposals. The Secretary shall afford an opportunity to participate in the negotiations to all acceptable offerors submitting proposals that the Secretary considers as having the potential to be the most advantageous to the United States (taking into account price and such other factors as the Secretary determines appropriate).”.</content></paragraph> </subsection> </quotedContent> </content></section> <section> <num value="1022">SEC. 1022. </num><heading>AUTHORITY TO ENTER INTO A LONG-TERM CHARTER FOR A VESSEL IN SUPPORT OF THE SURVEILLANCE TOWED-ARRAY SENSOR (SURTASS) PROGRAM.</heading> <content>The Secretary of the Navy is authorized to enter into a contract in accordance with section 2401 of title 10, United States Code, for the charter, for a period through fiscal year 2003, of the vessel RV CORY CHOUEST (United States official number 933435) in support of the Surveillance Towed-Array Sensor (SURTASS) program.</content> </section> <section> <num value="1023">SEC. 1023. </num><heading>TRANSFER OF TWO SPECIFIED OBSOLETE TUGBOATS OF THE ARMY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Authority To Transfer Vessels</inline>.—</heading><content>The Secretary of the Army may transfer the two obsolete tugboats of the Army described in subsection (b) to the Brownsville Navigation District, Brownsville, Texas.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Vessels Covered</inline>.—</heading><content>Subsection (a) applies to the following two decommissioned tugboats of the Army, each of which is listed as of the date of the enactment of this Act as being surplus to the needs of the Army: the Normandy (LT–1971) and the Salerno (LT–1953).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Transfers To Be at No Cost to United States</inline>.—</heading><content>A transfer authorized by this section shall be made at no cost to the United States.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Terms and Conditions</inline>.—</heading><content>The Secretary may require such additional terms and conditions in connection with the transfers authorized by this section as the Secretary considers appropriate.</content> </subsection> </section> <section> <num value="1024">SEC. 1024. </num><heading>CONGRESSIONAL REVIEW PERIOD WITH RESPECT TO TRANSFER OF EX-U.S.S. HORNET (CV–12) AND EX-U.S.S. MIDWAY (CV–41).</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Reduction in Congressional Review Period</inline>.—</heading><content>In applying section 7306 of title 10, United States Code, with respect to the transfer of a vessel specified in subsection (c), subsection (d)(1)(B) of that section shall be applied by substituting “30 days” for “60 days”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Waiver if Only One Qualified Entity Applies for Transfer of Vessel</inline>.—</heading><content>If in the case of a vessel specified in subsection (c) only a single qualified entity, as determined by the Secretary of the Navy, applies for transfer of the vessel, the Secretary may carry out the transfer of the vessel under section 7306 of title 10, United States Code, without regard to subsection (d)(1)(B) of that section. Ln such a case, the transfer may be made only after 10 days of continuous session of Congress (determined in the manner specified in section 7306(d)(2) of title 10, United States Code) have expired following the date on which the Secretary submits <page identifier="/us/stat/111/1877">111 STAT. 1877</page>to Congress a certification that only a single qualified entity applied for transfer of the vessel.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Covered Vessels</inline>.—</heading><chapeau>This section applies to the following vessels (each of which is a decommissioned aircraft carrier):</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Ex-U.S.S. HORNET (CV–12).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Ex-U.S.S. MIDWAY (CV–41).</content></paragraph> </subsection> </section> <section> <num value="1025">SEC. 1025. </num><heading>TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Authority</inline>.—</heading><chapeau>The Secretary of the Navy is authorized to transfer vessels to foreign countries on a sales basis under section 21 of the Arms Export Control Act (22 U.S.C. 2761) as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>To the Government of Brazil, the HUNLEY class submarine tender HOLLAND (AS 32).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>To the Government of Chile, the KAISER class oiler ISHERWOOD (T–AO 191).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><chapeau>To the Government of Egypt:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><chapeau>The following frigates of the KNOX class:</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>The PAUL (FF 1080).</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>The MILLER (FF 1091).</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii) </num><content>The JESSE L. BROWN (FFT 1089).</content></clause> <clause class="indent3 fontsize10"><num value="iv">(iv) </num><content>The MOINESTER (FFT 1097).</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><chapeau>The following frigates of the OLIVER HAZARD PERRY class:</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>The FAHRION (FFG 22).</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>The LEWIS B. PULLER (FFG 23).</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>To the Government of Israel, the NEWPORT class tank landing ship PEORIA (LST 1183).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>To the Government of Malaysia, the NEWPORT class tank landing ship BARBOUR COUNTY (LST 1195).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>To the Government of Mexico, the KNOX class frigate ROARK (FF 1053).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><chapeau>To the Taipei Economic and Cultural Representative Office in the United States (the Taiwan instrumentality that is designated pursuant to section 10(a) of the Taiwan Relations Act), the following frigates of the KNOX class:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>The WHIPPLE (FF 1062).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>The DOWNES (FF 1070).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>To the Government of Thailand, the NEWPORT class tank landing ship SCHENECTADY (LST 1185).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Costs of Transfers</inline>.—</heading><content>Any expense incurred by the United States in connection with a transfer authorized by subsection (a) shall be charged to the recipient.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Repair and Refurbishment in United States Shipyards</inline>.—</heading><content>To the maximum extent practicable, the Secretary of the Navy shall require, as a condition of the transfer of a vessel under this section, that the country to which the vessel is transferred have such repair or refurbishment of the vessel as is needed, before the vessel joins the naval forces of that country, performed at a shipyard located in the United States, including a United States Navy shipyard.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Expiration of Authority</inline>.—</heading><content>The authority to transfer a vessel under subsection (a) shall expire at the end of the two-year period beginning on the date of the enactment of this Act.<page identifier="/us/stat/111/1878">111 STAT. 1878</page></content> </subsection> </section> <section> <num value="1026">SEC. 1026. </num><heading>REPORTS RELATING TO EXPORT OF VESSELS THAT MAY CONTAIN POLYCHLORINATED BIPHENYLS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Reports Required</inline>.—</heading><content>Not later than March 1, 1998, the Secretary of the Navy (with respect to the Navy), the Administrator of the Maritime Administration (with respect to the Maritime Administration), and the Administrator of the Environmental Protection Agency (with respect to the Environmental Protection Agency) shall each submit to Congress a report on the implementation of the agreement between the Department of the Navy and the Environmental Protection Agency that became effective August 6, 1997, and that is titled “Export of Naval Vessels that May Contain Polychlorinated Biphenyls for Scrapping Outside the United States”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Contents of Reports</inline>.—</heading><chapeau>The reports required by subsection (a) shall address, at a minimum, the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>An assessment of the effects of the notification requirements regarding the export of vessels for scrapping, any impediments that those requirements may create for the export of vessels, and any changes to the agreement that may be required to address those impediments.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>An explanation of the process by which it is determined which solid items containing polychlorinated biphenyls are readily removable and must be removed before the export of a vessel for scrapping, what types of polychlorinated biphenyls have been determined to be readily removable pursuant to this process, any impediments that such determinations may create for the export of vessels, and any changes to the agreement that may be required to address those impediments or to ensure protection of human health and the environment.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Amendments Relating to Disposal of Obsolete Vessels From the National Defense Reserve Fleet</inline>.—</heading><chapeau>Section 6 of the National Maritime Heritage Act of 1994 (Public Law 103–451; 108 Stat. 4776; 16 U.S.C. 5405) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>in subsections (a)(1) and (b)(2)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by inserting “<quotedText>or 510(i)</quotedText>” after “508”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by inserting “<quotedText>or 1160(i)</quotedText>” after “1158”;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in subsection (b)(2), by striking out “first 6” and inserting in lieu thereof “first 8”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>in subsection (c)(1)(A), by striking out “1999” and inserting in lieu thereof “2001”.</content></paragraph> </subsection> </section> <section> <num value="1027">SEC. 1027. </num><heading>CONVERSION OF DEFENSE CAPABILITY PRESERVATION AUTHORITY TO NAVY SHIPBUILDING CAPABILITY PRESERVATION AUTHORITY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Chapter 633 of title 10, United States Code, is amended by adding at the end the following new section: <quotedContent> <section> <num value="7315">“§ 7315. </num><heading>Preservation of Navy shipbuilding capability</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Shipbuilding Capability Preservation Agreements</inline>.—</heading><content>The Secretary of the Navy may enter into an agreement, to be known as a ‘shipbuilding capability preservation agreement’, with a shipbuilder under which the cost reimbursement rules described in subsection (b) shall be applied to the shipbuilder under a Navy contract for the construction of a ship. Such an agreement may be entered into in any case in which the Secretary determines <page identifier="/us/stat/111/1879">111 STAT. 1879</page>that the application of such cost reimbursement rules would facilitate the achievement of the policy objectives set forth in section 2501(b) of this title.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Cost Reimbursement Rules</inline>.—</heading><chapeau>The cost reimbursement rules applicable under an agreement entered into under subsection (a) are as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>The Secretary of the Navy shall, in determining the reimbursement due a shipbuilder for its indirect costs of performing a contract for the construction of a ship for the Navy, allow the shipbuilder to allocate indirect costs to its private sector work only to the extent of the shipbuilder’s allocable indirect private sector costs, subject to paragraph (3).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><chapeau>For purposes of paragraph (1), the allocable indirect private sector costs of a shipbuilder are those costs of the shipbuilder that are equal to the sum of the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>The incremental indirect costs attributable to such work.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><chapeau>The amount by which the revenue attributable to such private sector work exceeds the sum of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>the direct costs attributable to such private sector work; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>the incremental indirect costs attributable to such private sector work.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>The total amount of allocable indirect private sector costs for a contract covered by the agreement may not exceed the amount of indirect costs that a shipbuilder would have allocated to its private sector work during the period covered by the agreement in accordance with the shipbuilder’s established accounting practices.</content></paragraph></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Authority To Modify Cost Reimbursement Rules</inline>.—</heading><content>The cost reimbursement rules set forth in subsection (b) may be modified by the Secretary of the Navy for a particular agreement if the Secretary determines that modifications are appropriate to the particular situation to facilitate achievement of the policy set forth in section 2501(b) of this title.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Applicability</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>An agreement entered into with a shipbuilder under subsection (a) shall apply to each of the following Navy contracts with the shipbuilder:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>A contract that is in effect on the date on which the agreement is entered into.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>A contract that is awarded during the term of the agreement.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>In a shipbuilding capability preservation agreement applicable to a shipbuilder, the Secretary may agree to apply the cost reimbursement rules set forth in subsection (b) to allocations of indirect costs to private sector work performed by the shipbuilder only with respect to costs that the shipbuilder incurred on or after the date of the enactment of the National Defense Authorization Act for Fiscal Year 1998 under a contract between the shipbuilder and a private sector customer of the shipbuilder that became effective on or after January 26, 1996.”.</content></paragraph> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of such chapter is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“7315.</designator> <label>Preservation of Navy shipbuilding capability.”.<page identifier="/us/stat/111/1880">111 STAT. 1880</page></label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s7315">10 USC 7315 note</ref>.</p></sidenote><heading><inline class="smallCaps">Implementation</inline>.—</heading><content>Not later than 30 days after the date of the enactment of this Act. the Secretary of the Navy shall establish application procedures and procedures for expeditious consideration of shipbuilding capability preservation agreements as authorized by section 7315 of title 10, United States Code, as added by subsection (a).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than February 15, 1998, the Secretary of the Navy shall submit to Congress a report on applications for shipbuilding capability preservation agreements under section 7315 of title 10, United States Code, as added by subsection (a). The report shall specify the number of the applications received, the number of the applications approved, and a discussion of the reasons for disapproval of any application disapproved.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Repeal of Superseded Provision</inline>.—</heading><content>Section 808 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104–106; 110 Stat. 393; 10 U.S.C. 2501 note) is repealed.</content> </subsection> </section> </subtitle> <subtitle> <num value="C">Subtitle C—</num><heading>Counter-Drug Activities</heading> <section> <num value="1031">SEC. 1031. </num><heading>USE OF NATIONAL GUARD FOR STATE DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Relationship to Training and Readiness</inline>.—</heading><chapeau>Subsection (b) of section 112 of title 32, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>(1)</quotedText>” before “Under regulations”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following new paragraphs: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>To ensure that the use of units and personnel of the National Guard of a State pursuant to a State drug interdiction and counter-drug activities plan is not detrimental to the training and readiness of such units and personnel, the requirements of section 2012(d) of title 10 shall apply in determining the drug interdiction and counter-drug activities that units and personnel of the National Guard of a State may perform.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>Section 508 of this title, regarding the provision of assistance to certain specified youth and charitable organizations, shall apply in any case in which a unit or member of the National Guard of a State is proposed to be used pursuant to a State drug interdiction and counter-drug activities plan to provide to an organization specified in subsection (d) of such section any of the services described in subsection (b) of such section or services regarding counter-drug education.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Engineer-Type Activities</inline>.—</heading><chapeau>Subsection (c) of such section is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting after paragraph (3) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>certify that any engineer-type activities (as defined by the Secretary of Defense) under the plan will be performed only by units and members of the National Guard;”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Annual Report</inline>.—</heading><chapeau>Such section is further amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by redesignating subsections (g) and (h) as subsections (h) and (i), respectively; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting after subsection (f) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="g">“(g) </num><heading><inline class="smallCaps">Annual Report</inline>.—</heading><chapeau>The Secretary of Defense shall submit to Congress an annual report regarding assistance provided and <page identifier="/us/stat/111/1881">111 STAT. 1881</page>activities carried out under this section during the preceding fiscal year. The report shall include the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>The number of members of the National Guard excluded under subsection (e) from the computation of end strengths.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>A description of the drug interdiction and counterdrug activities conducted under State drug interdiction and counter-drug activities plans referred to in subsection (c) with funds provided under this section.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>An accounting of the amount of funds provided to each State.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>A description of the effect on military training and readiness of using units and personnel of the National Guard to perform activities under the State drug interdiction and counter-drug activities plans.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><chapeau>Subsection (e) of such section is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out “(1)” before “Members”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking out paragraph (2).</content></paragraph> </subsection> </section> <section> <num value="1032">SEC. 1032. </num><heading>AUTHORITY TO PROVIDE ADDITIONAL SUPPORT FOR COUNTER-DRUG ACTIVITIES OF MEXICO.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Extension of Authority; Consultation of Secretary of State</inline>.—</heading><chapeau>Subsection (a) of section 1031 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2637), is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out “fiscal year 1997” and inserting in lieu thereof “fiscal years 1997 and 1998”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting after the first sentence the following new sentence: “In providing support to the Government of Mexico under this section, the Secretary of Defense shall consult with the Secretary of State.”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Extension of Availability of Funds</inline>.—</heading><chapeau>Subsection (d) of such section is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out “not more than” and inserting in lieu thereof “an amount not to exceed”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following new sentences: “Funds made available for fiscal year 1997 under this subsection and unobligated by September 30, 1997, may be obligated during fiscal year 1998. No funds are authorized to be appropriated for fiscal year 1998 for the provision of support under this section.”.</content></paragraph> </subsection> </section> <section> <num value="1033">SEC. 1033. </num><heading>AUTHORITY TO PROVIDE ADDITIONAL SUPPORT FOR COUNTER-DRUG ACTIVITIES OF PERU AND COLOMBIA.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Authority To Provide Support</inline>.—</heading><content>Subject to subsection (f), during fiscal years 1998 through 2002, the Secretary of Defense may provide either or both of the foreign governments named in subsection (b) with the support described in subsection (c) for the counter-drug activities of that government. In providing support to a government under this section, the Secretary of Defense shall consult with the Secretary of State. The support provided under the authority of this section shall be in addition to support provided to the governments under any other provision of law.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Governments Eligible To Receive Support</inline>.—</heading><chapeau>The foreign governments eligible to receive counter-drug support under tins section are as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The Government of Peru.<page identifier="/us/stat/111/1882">111 STAT. 1882</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The Government of Colombia.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Types of Support</inline>.—</heading><chapeau>The authority under subsection (a) is limited to the provision of the following types of support to a government named in subsection (b):</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The types of support specified in paragraphs (1), (2), and (3) of section 1031(b) of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2637).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The transfer of riverine patrol boats.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The maintenance and repair of equipment of the government that is used for counter-drug activities.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Applicability of Other Support Authorities</inline>.—</heading><content>Except as otherwise provided in this section, the provisions of section 1004 of the National Defense Authorization Act for Fiscal Year 1991 (Public Law 101–510; 10 U.S.C. 374 note) shall apply to the provision of support under this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Fiscal Year 1998 Funding; Limitation on Obligations</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Of the amount authorized to be appropriated under section 301(20) for drug interdiction and counter-drug activities, an amount not to exceed $9,000,000 shall be available for the provision of support under this section.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Amounts made available to carry out this section shall remain available until expended, except that the total amount obligated and expended under this section may not exceed $20,000,000 during any of the fiscal years 1999 through 2002.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Condition on Provision of Support</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of Defense may not obligate or expend funds during a fiscal year to provide support under this section to a government named in subsection (b) until the end of the 15-day period beginning on the date on which the Secretary submits to the congressional committees the written certification described in subsection (g) for that fiscal year.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>In the case of the first fiscal year in which support is to be provided under this section to a government named in subsection (b), the obligation or expenditure of funds under this section to provide support to that government shall also be subject to the condition that—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>the Secretary submit to the congressional committees the riverine counter-drug plan described in subsection (h); and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>a period of 60 days expires after the date on which the report is submitted.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><content>In the case of subsequent fiscal years in which support is to be provided under this section to a government named in subsection (b), the obligation or expenditure of funds under this section to provide support to that government shall also be subject to the condition that the Secretary submit to the congressional committees any revision of the counter-drug plan described in subsection (h) applicable to that government.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="4">(4) </num><chapeau>For purposes of this subsection, the term “congressional committees” means the following:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>The Committee on Armed Services and the Committee on Foreign Relations of the Senate.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>The Committee on National Security and the Committee on International Relations of the House of Representatives.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num><heading><inline class="smallCaps">Required Certification</inline>.—</heading><chapeau>The written certification required by subsection (f)(1) for a fiscal year is a certification of the following with respect to each government to receive support under this section:<page identifier="/us/stat/111/1883">111 STAT. 1883</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>That the provision of the support to the government will not adversely affect the military preparedness of the United States Armed Forces.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>That the equipment and materiel provided as support will be used only by officials and employees of the government who have undergone background investigations by that government and have been approved by that government to perform counter-drug activities on the basis of the background investigations.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><chapeau>That the government has certified to the Secretary of Defense that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the equipment and materiel provided as support will be used only by the officials and employees referred to in paragraph (2);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>none of the equipment or materiel will be transferred (by sale, gift, or otherwise) to any person or entity not authorized by the United States to receive the equipment or materiel; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>the equipment and materiel will be used only for the purposes intended by the United States Government.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>That the government has implemented, to the satisfaction of the Secretary of Defense, a system that will provide an accounting and inventory of the equipment and materiel provided as support.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>That the departments, agencies, and instrumentalities of the government will grant United States Government personnel access to any of the equipment or materiel provided as support, or to any of the records relating to such equipment or materiel, under terms and conditions similar to the terms and conditions imposed with respect to such access under section 505(a)(3) of the Foreign Assistance Act of 1961 (22 U.S.C. 2314(a)(3)).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>That the government will provide security with respect to the equipment and materiel provided as support that is substantially the same degree of security that the United States Government would provide with respect to such equipment and materiel.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>That the government will permit continuous observation and review by United States Government personnel of the use of the equipment and materiel provided as support under terms and conditions similar to the terms and conditions imposed with respect to such observation and review under section 505(a)(3) of the Foreign Assistance Act of 1961 (22 U.S.C. 2314(a)(3)).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h) </num><heading><inline class="smallCaps">Riverine Counter-Drug Plan</inline>.—</heading><chapeau>The Secretary of Defense, in consultation with the Secretary of State, shall prepare for fiscal year 1998 (and revise as necessary for subsequent fiscal years) a riverine counter-drug plan involving the governments named in subsection (b) to which support will be provided under this section. The plan for a fiscal year shall include the following with respect to each government to receive support under this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>A detailed security assessment, including a discussion of the threat posed by illicit drug traffickers in the foreign country.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>An evaluation of previous and ongoing riverine counterdrug operations by the government.<page identifier="/us/stat/111/1884">111 STAT. 1884</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>An assessment of the monitoring of past and current assistance provided by the United States under this section to the government to ensure the appropriate use of such assistance.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>A description of the centralized management and coordination among Federal agencies involved in the development and implementation of the plan.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>A description of the roles and missions and coordination among agencies of the government involved in the development and implementation of the plan.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>A description of the resources to be contributed by the Department of Defense and the Department of State for the fiscal year or years covered by the plan and the manner in which such resources will be utilized under the plan.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>For the first fiscal year in which support is to be provided under this section, a schedule for establishing a riverine counter-drug program that can be sustained by the government within five years, and for subsequent fiscal years, a description of the progress made in establishing and carrying out the program.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>A reporting system to measure the effectiveness of the riverine counter-drug program.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><content>A detailed discussion of how the riverine counter-drug program supports the national drug control strategy of the United States.</content></paragraph> </subsection> </section> <section> <num value="1034">SEC. 1034. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s1505a">21 USC 1505a</ref>.</p></sidenote><heading>ANNUAL REPORT ON DEVELOPMENT AND DEPLOYMENT OF NARCOTICS DETECTION TECHNOLOGIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Report Requirement</inline>.—</heading><content>Not later than December 1st of each year, the Director of the Office of National Drug Control Policy shall submit to Congress and the President a report on the development and deployment of narcotics detection technologies by Federal agencies. Each such report shall be prepared in consultation with the Secretary of Defense, the Secretary of State, the Secretary of Transportation, and the Secretary of the Treasury.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Matters To Be Included</inline>.—</heading><chapeau>Each report under subsection (a) shall include—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>a description of each project implemented by a Federal agency relating to the development or deployment of narcotics detection technology;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the agency responsible for each project described in paragraph (1);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>the amount of funds obligated or expended to carry out each project described in paragraph (1) during the fiscal year in which the report is submitted or during any fiscal year preceding the fiscal year in which the report is submitted;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>the amount of funds estimated to be obligated or expended for each project described in paragraph (1) during any fiscal year after the fiscal year in which the report is submitted to Congress; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>a detailed timeline for implementation of each project described in paragraph (1).<page identifier="/us/stat/111/1885">111 STAT. 1885</page></content></paragraph> </subsection> </section> </subtitle> <subtitle> <num value="D">Subtitle D—</num><heading>Miscellaneous Report Requirements and Repeals</heading> <section> <num value="1041">SEC. 1041. </num><heading>REPEAL OF MISCELLANEOUS REPORTING REQUIREMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Requirement for Notice of Conversion of Certain Heating Systems at Installations in Europe</inline>.—</heading><content>Section 2690(b) of title 10, United States Code, is amended by striking out “unless the Secretary—” and all that follows and inserting in lieu thereof the following: “unless the Secretary determines that the conversion— <quotedContent> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>is required by the government of the country in which the facility is located; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>is cost-effective over the life cycle of the facility.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Report on Availability of Suitable Alternative Housing</inline>.—</heading><chapeau>Section 2823 of title 10, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out subsection (b); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by redesignating subsections (c) and (d) as subsections (b) and (c), respectively.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Report on Stretchout of Major Defense Acquisition Programs</inline>.—</heading><content>Section 117 of the National Defense Authorization Act, Fiscal Year 1989 (Public Law 100–456; 102 Stat. 1933; 10 U.S.C. 2431 note), is repealed.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Elimination of Requirement for Quarterly Report Concerning Travel Funding for Chemical Demilitarization Citizens’ Advisory Commissioners</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>Section 1412(g) of the National Defense Authorization Act for Fiscal Year 1986 (50 U.S.C. 1521(g)) is amended—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>by striking out paragraph (3);</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>by striking out the last sentence of paragraph (4); and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><content>by redesignating paragraph (4) (as so amended) as paragraph (3).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>Section 153(b) of the National Defense Authorization Act for Fiscal Year 1996 (50 U.S.C. 1521 note) is amended—<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t50/s1521">50 USC 1521</ref>.</p></sidenote></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking out “<inline class="smallCaps">Quarterly</inline>” in the heading; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking out paragraphs (4) and (5).</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="1042">SEC. 1042. </num><heading>STUDY OF TRANSFER OF MODULAR AIRBORNE FIRE FIGHTING SYSTEM.</heading> <content>Not later than six months after the date of the enactment of this Act, the Secretary of Defense, in consultation with the Secretary of Agriculture, shall submit to Congress a report evaluating the feasibility of transferring jurisdiction over units of the Modular Airborne Fire Fighting System from the Department of Agriculture to the Department of Defense.</content> </section> <section> <num value="1043">SEC. 1043. </num><heading>OVERSEAS INFRASTRUCTURE REQUIREMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>Congress makes the following findings:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>United States military forces have been withdrawn from the Philippines.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>United States military forces are to be withdrawn from Panama by 2000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>There continues to be local opposition to the continued presence of United States military forces in Okinawa.<page identifier="/us/stat/111/1886">111 STAT. 1886</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The Quadrennial Defense Review lists “the loss of U.S. access to critical facilities and lines of communication in key regions” as one of the so-called “wild card” scenarios covered in the review.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>The National Defense Panel states that “U.S. forces’ long-term access to forward bases, to include air bases, ports, and logistics facilities, cannot be assumed”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><chapeau>Sense of Congress.—It is the sense of Congress that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the President should develop alternatives to the current arrangement for forward basing of the Armed Forces outside the United States, including alternatives to the existing infrastructure for forward basing of forces and alternatives to the existing international agreements that provide for basing of United States forces in foreign countries; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>because the Pacific Rim continues to emerge as a region of significant economic and military importance to the United States, a continued presence of the Armed Forces in that region is vital to the capability of the United States to timely protect its interests in the region.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Report Required</inline>.—</heading><content>Not later than March 31, 1998, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report on the overseas infrastructure requirements of the Armed Forces.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Content</inline>.—</heading><chapeau>The report shall contain the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The quantity and types of forces that the United States must station in each region of the world in order to support the current national military strategy of the United States.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The quantity and types of forces that the United States will need to station in each region of the world in order to meet the expected or potential future threats to the national security interests of the United States.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The requirements for access to, and use of, air space and ground maneuver areas in each such region for training for the quantity and types of forces identified for the region pursuant to paragraphs (1) and (2).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>A list of the international agreements, currently in force, that the United States has entered into with foreign countries regarding the basing of United States forces in those countries and the dates on which the agreements expire.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>A discussion of any anticipated political opposition or other opposition to the renewal of any of those international agreements.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>A discussion of future overseas basing requirements for United States forces, taking into account expected changes in national security strategy, national security environment, and weapons systems.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>The expected costs of maintaining the overseas infrastructure for foreign based forces of the United States, including the costs of constructing any new facilities that will be necessary overseas to meet emerging requirements relating to the national security interests of the United States.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Form of Report</inline>.—</heading><content>The report may be submitted in a classified or unclassified form.<page identifier="/us/stat/111/1887">111 STAT. 1887</page></content> </subsection> </section> <section> <num value="1044">SEC. 1044. </num><heading>ADDITIONAL MATTERS FOR ANNUAL REPORT ON ACTIVITIES OF THE GENERAL ACCOUNTING OFFICE.</heading> <content>Section 719(b) of title 31, United States Code, is amended by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><chapeau>The report under subsection (a) shall also include a statement of the staff hours and estimated cost of work performed on audits, evaluations, investigations, and related work during each of the three fiscal years preceding the fiscal year in which the report is submitted, stated separately for each division of the General Accounting Office by category as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>A category for work requested by the chairman of a committee of Congress, the chairman of a subcommittee of such a committee, or any other Member of Congress.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>A category for work required by law to be performed by the Comptroller General.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>A category for work initiated by the Comptroller General in the performance of the Comptroller General’s general responsibilities.”.</content></subparagraph> </paragraph> </quotedContent> </content></section> <section> <num value="1045">SEC. 1045. </num><heading>EYE SAFETY AT SMALL ARMS FIRING RANGES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Actions Required</inline>.—</heading><chapeau>The Secretary of the Defense shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>conduct a study of eye safety at small arms firing ranges of the Armed Forces; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>develop for the use of the Armed Forces a protocol for reporting eye injuries incurred in small arms firing activities at the ranges.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Agency Tasking</inline>.—</heading><content>The Secretary may delegate authority to carry out the responsibilities set forth in subsection (a) to the United States Army Center for Health Promotion and Preventive Medicine or any other element of the Department of Defense that the Secretary considers well qualified to carry out those responsibilities.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Content of Study</inline>.—</heading><chapeau>The study under subsection (a)(1) shall include the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>An evaluation of the existing policies, procedures, and practices of the Armed Forces regarding medical surveillance of eye injuries resulting from weapons fire at the small arms ranges.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>An examination of the existing policies, procedures, and practices of the Armed Forces regarding reporting on vision safety issues resulting from weapons fire at the small arms ranges.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Determination of rates of eye injuries, and trends in eye injuries, resulting from weapons fire at the small arms ranges.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>An evaluation of the costs and benefits of a requirement for use of eye protection devices by all personnel firing small arms at the ranges.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Report</inline>.—</heading><chapeau>The Secretary shall submit a report on the activities required under this section to the Committees on Armed Services and on Veterans’ Affairs of the Senate and the Committees on National Security and on Veterans’ Affairs of the House of Representatives. The report shall include—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the findings resulting from the study under paragraph (1) of subsection (a); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the protocol developed under paragraph (2) of such subsection.<page identifier="/us/stat/111/1888">111 STAT. 1888</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Schedule</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary shall ensure that the study is commenced not later than January 1, 1998, and is completed not later than six months after the date on which it is commenced.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The Secretary shall submit the report required under subsection (d) not later than 30 days after the completion of the study.</content></paragraph> </subsection> </section> <section> <num value="1046">SEC. 1046. </num><heading>REPORTS ON DEPARTMENT OF DEFENSE PROCEDURES FOR INVESTIGATING MILITARY AVIATION ACCIDENTS AND FOR NOTIFYING AND ASSISTING FAMILIES OF VICTIMS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Report on Aviation Accident Investigation Procedures</inline>.—</heading><content>Not later than February 1, 1998, the Secretary of Defense shall submit to Congress a report on the advisability of establishing a process for investigating Department of Defense aviation accidents that combines accident investigation with safety investigation into a single, public investigation process, similar to the accident investigation process of the National Transportation Safety Board. The report shall include a discussion of the advantages and disadvantages of adopting such an investigation process.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Report on Family Assistance</inline>.—</heading><chapeau>Not later than April 2, 1998, the Secretary of Defense shall submit to Congress a report on assistance provided by the Department of Defense to families of casualties among military and civilian personnel of the department in the case of aviation accidents involving such personnel. The report shall include—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>a discussion of the adequacy and effectiveness of the family notification procedures of the Department of Defense, including the procedures of the military departments; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>a description of the assistance provided to members of the families of such personnel.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Report by Department of Defense Inspector General</inline>.—</heading><chapeau>Not later than December 1, 1997, the Inspector General of the Department of Defense shall review the procedures of the Federal Aviation Administration and the National Transportation Safety Board for providing information and assistance to members of families of casualties of nonmilitary aviation accidents and shall submit to Congress a report on the review. The report shall include a discussion of the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Designation of an experienced non-profit organization to provide assistance in meeting the needs of families of accident casualties.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>An assessment of the system and procedures for providing families with information on accidents and accident investigations.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Protection of members of families from unwanted solicitations relating to the accident.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>A recommendation regarding whether the procedures reviewed (including the matters discussed under paragraphs (1), (2), and (3)) or similar procedures should be adopted by the Department of Defense for use by the Department in providing information and assistance to members of families of casualties of military aviation accidents and, if the recommendation is not to adopt such procedures, a detailed justification for the recommendation.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Unclassified Form of Reports</inline>.—</heading><content>The reports under this section shall be submitted in unclassified form.<page identifier="/us/stat/111/1889">111 STAT. 1889</page></content> </subsection> </section> </subtitle> <subtitle> <num value="E">Subtitle E—</num><heading>Matters Relating to Terrorism</heading> <section> <num value="1051">SEC. 1051. </num><heading>OVERSIGHT OF COUNTERTERRORISM AND ANTITERRORISM ACTIVITIES; REPORT.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t31/s1113">31 USC 1113 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Oversight of Counterterrorism and Antiterrorism Activities</inline>.—</heading><chapeau>Not later than 120 days after the date of the enactment of this Act, the Director of the Office of Management and Budget shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>establish a reporting system for executive agencies with respect to the budget and expenditure of funds by such agencies for the purpose of carrying out counterterrorism and antiterrorism programs and activities; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>using such reporting system, collect information on—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the budget and expenditure of funds by executive agencies during the current fiscal year for purposes of carrying out counterterrorism and antiterrorism programs and activities; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the specific programs and activities for which such funds were expended.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Report</inline>.—</heading><chapeau>Not later that March 1 of each year, the President<sidenote><p class="indent0 firstIndent0 fontsize8">President.</p></sidenote> shall submit to Congress a report in classified and unclassified form (using the information described in subsection (a)(2)) describing, for each executive agency and for the executive branch as a whole, the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The amounts proposed to be expended for counterterrorism and antiterrorism programs and activities for the fiscal year beginning in the calendar year in which the report is submitted.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The amounts proposed to be expended for counterterrorism and antiterrorism programs and activities for the fiscal year in which the report is submitted and the amounts that have already been expended for such programs and activities for that fiscal year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The specific counterterrorism and antiterrorism programs and activities being implemented, any priorities with respect to such programs and activities, and whether there has been any duplication of efforts in implementing such programs and activities.</content></paragraph> </subsection> </section> <section> <num value="1052">SEC. 1052. </num><heading>PROVISION OF ADEQUATE TROOP PROTECTION EQUIPMENT FOR ARMED FORCES PERSONNEL ENGAGED IN PEACE OPERATIONS; REPORT ON ANTITERRORISM ACTIVITIES AND PROTECTION OF PERSONNEL.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s113">10 USC 113 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Protection of Personnel</inline>.—</heading><content>The Secretary of Defense shall take appropriate actions to ensure that units of the Armed Forces engaged in a peace operation are provided adequate troop protection equipment for that operation.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Specific Actions</inline>.—</heading><chapeau>In taking actions under subsection (a), the Secretary shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>identify the additional troop protection equipment, if any, required to equip a division (or the equivalent of a division) with adequate troop protection equipment for peace operations; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>establish procedures to facilitate the exchange or transfer<sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote> of troop protection equipment among units of the Armed Forces.<page identifier="/us/stat/111/1890">111 STAT. 1890</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Designation of Responsible Official</inline>.—</heading><chapeau>The Secretary of Defense shall designate an official within the Department of Defense to be responsible for—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>ensuring the appropriate allocation of troop protection equipment among the units of the Armed Forces engaged in peace operations; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>monitoring the availability, status or condition, and location of such equipment.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Troop Protection Equipment Defined</inline>.—</heading><content>In this section, the term “troop protection equipment” means the equipment required by units of the Armed Forces to defend against any hostile threat that is likely during a peace operation, including an attack by a hostile crowd, small arms fire, mines, and a terrorist bombing attack.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Report on Antiterrorism Activities of the Department of Defense and Protection of Personnel</inline>.—</heading><chapeau>Not later than 120 days after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report, in classified and unclassified form, on antiterrorism activities of the Department of Defense and the actions taken by the Secretary under subsections (a), (b), and (c). The report shall include the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>A description of the programs designed to carry out antiterrorism activities of the Department of Defense, any deficiencies in those programs, and any actions taken by the Secretary to improve implementation of such programs.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>An assessment of the current policies and practices of the Department of Defense with respect to the protection of members of the Armed Forces overseas against terrorist attack, including any modifications to such policies or practices that are proposed or implemented as a result of the assessment.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>An assessment of the procedures of the Department of Defense for determining accountability, if any, in the command structure of the Armed Forces in instances in which a terrorist attack results in the loss of life at an overseas military installation or facility.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>A detailed description of the roles of the Office of the Secretary of Defense, the Chairman of the Joint Chiefs of Staff, the Secretaries of the military departments, and the combatant commanders in providing guidance and support with respect to the protection of members of the Armed Forces deployed overseas against terrorist attack (both before and after the November 1995 bombing in Riyadh, Saudi Arabia) and how these roles have changed since the June 25, 1996, terrorist bombing at Khobar Towers in Dhahran, Saudi Arabia.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>A description of the actions taken by the Secretary of Defense under subsections (a), (b), and (c) to provide adequate troop protection equipment for units of the Armed Forces engaged in a peace operation.<page identifier="/us/stat/111/1891">111 STAT. 1891</page></content></paragraph> </subsection> </section> </subtitle> <subtitle> <num value="F">Subtitle F—</num><heading>Matters Relating to Defense Property</heading> <section> <num value="1061">SEC. 1061. </num><heading>LEASE OF NON-EXCESS PERSONAL PROPERTY OF MILITARY DEPARTMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Receipt of Fair Market Value</inline>.—</heading><content>Subsection (b)(4) of section 2667 of title 10, United States Code, is amended by striking out “, in the case of the lease of real property,”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Competitive Selection</inline>.—</heading><chapeau>Such section is further amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by redesignating subsection (g) as subsection (h); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting after subsection (f) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="g">“(g) </num><paragraph class="inline"><num value="1">(1) </num><content>If a proposed lease under subsection (a) involves only personal property, the lease term exceeds one year, and the fair market value of the lease interest exceeds $100,000, as determined by the Secretary concerned, the Secretary shall use competitive procedures to select the lessee.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>Not later than 45 days before entering into a lease described<sidenote><p class="indent0 firstIndent0 fontsize8">Notice.</p></sidenote> in paragraph (1), the Secretary concerned shall submit to Congress written notice describing the terms of the proposed lease and the competitive procedures used to select the lessee.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Clerical Amendments</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The heading of such section is amended to read as follows: <quotedContent> <section> <num value="2667">“§ 2667. </num><heading>Leases: non-excess property of military departments”.</heading> </section> </quotedContent> </content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of chapter 159 of title 10, United States Code, is amended by striking out the item relating to section 2667 and inserting in lieu thereof the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“2667.</designator> <label>Leases: non-excess property of military departments ”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>Section 2490a(f)(2) of title 10, United States Code, is amended by striking out “section 2667(g)” and inserting in lieu thereof “section 2667(h)”.</content> </subsection> </section> <section> <num value="1062">SEC. 1062. </num><heading>LEASE OF NON-EXCESS PROPERTY OF DEFENSE AGENCIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Lease Authority</inline>.—</heading><content>Chapter 159 of title 10, United States Code, is amended by inserting after section 2667 the following new section: <quotedContent> <section> <num value="2667a">“§2667a. </num><heading>Leases: non-excess property of Defense agencies</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Lease Authority</inline>.—</heading><chapeau>Whenever the Secretary of Defense considers it advantageous to the United States, the Secretary may lease to such lessee and upon such terms as the Secretary considers will promote the national defense or to be in the public interest, personal property that is—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>under the control of a Defense agency,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>not for the time needed for public use; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>not excess property, as defined by section 3 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 472).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Limitation, Terms, and Conditions</inline>.—</heading><chapeau>A lease under subsection (a)—<page identifier="/us/stat/111/1892">111 STAT. 1892</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>may not be for more than five years unless the Secretary of Defense determines that a lease for a longer period will promote the national defense or be in the public interest;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>may give the lessee the first right to buy the property if the lease is revoked to allow the United States to sell the property under any other provision of law;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>shall permit the Secretary to revoke the lease at any time, unless the Secretary determines that the omission of such a provision will promote the national defense or be in the public interest;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>shall provide for the payment (in cash or in kind) by the lessee of consideration in an amount that is not less than the fair market value of the lease interest, as determined by the Secretary; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><content>may provide, notwithstanding any other provision of law, for the improvement, maintenance, protection, repair, restoration, or replacement by the lessee, of the property leased as the payment of part or all of the consideration for the lease.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Competitive Selection</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>If the term of a proposed lease under subsection (a) exceeds one year and the fair market value of the lease interest exceeds $100,000, as determined by the Secretary of Defense, the Secretary shall use competitive procedures to select the lessee.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Notice.</p></sidenote><content>Not later than 45 days before entering into a lease described in paragraph (1), the Secretary shall submit to Congress a written notice describing the terms of the proposed lease and the competitive procedures used to select the lessee.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Disposition of Money Rent</inline>.—</heading><content>Money rentals received pursuant to a lease entered into by the Secretary of Defense under subsection (a) shall be deposited in a special account in the Treasury established for the Defense agency whose property is subject to the lease. Amounts in a Defense agency’s special account shall be available, to the extent provided in appropriations Acts, solely for the maintenance, repair, restoration, or replacement of the leased property.”.</content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 2667 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“2667a.</designator> <label>Leases: non-excess property of Defense agencies.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="1063">SEC. 1063. </num><heading>DONATION OF EXCESS CHAPEL PROPERTY TO CHURCHES DAMAGED OR DESTROYED BY ARSON OR OTHER ACTS OF TERRORISM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Authority To Donate</inline>.—</heading><content>Chapter 153 of title 10, United States Code, is amended by adding at the end the following new section: <quotedContent> <section> <num value="2580">“§ 2580. </num><heading>Donation of excess chapel property</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Authority To Donate</inline>.—</heading><content>The Secretary of a military department may donate personal property specified in subsection (b) to an organization described in section 501(c)(3) of the Internal Revenue Code of 1986 that is a religious organization in order to assist the organization in restoring or replacing property of the organization that has been damaged or destroyed as a result of an act of arson or terrorism, as determined pursuant to procedures prescribed by the Secretary of Defense.<page identifier="/us/stat/111/1893">111 STAT. 1893</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Property Covered</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>The property authorized to be donated under subsection (a) is furniture and other personal property that—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>is in, or was formerly in, a chapel under the jurisdiction of the Secretary of a military department and closed or being closed; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>is determined by the Secretary to be excess to the requirements of the armed forces.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>No real property may be donated under this section.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Donees Not To Be Charged</inline>.—</heading><content>No charge may be imposed by the Secretary of a military department on a donee of property under this section in connection with the donation. However, the donee shall agree to defray any expense for shipping or other transportation of property donated under this section from the location of the property when donated to any other location.”.</content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections at the beginning of such chapter is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“2580.</designator> <label>Donation of excess chapel property.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="1064">SEC. 1064. </num><heading>AUTHORITY OF THE SECRETARY OF DEFENSE CONCERNING DISPOSAL OF ASSETS UNDER COOPERATIVE AGREEMENTS ON AIR DEFENSE IN CENTRAL EUROPE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">General Authorities</inline>.—</heading><chapeau>The Secretary of Defense, pursuant to an amendment or amendments to the European air defense agreements, may dispose of any defense articles owned by the United States and acquired to carry out such agreements by providing such articles to the Federal Republic of Germany. In carrying out such disposal, the Secretary—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>may provide without monetary charge to the Federal Republic of Germany articles specified in the agreements; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>may accept from the Federal Republic of Germany (in exchange for the articles provided under paragraph (1)) articles, services, or any other consideration, as determined appropriate by the Secretary.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Definition of European Air Defense Agreements</inline>.—</heading><chapeau>For the purposes of this section, the term “European air defense agreements” means—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the agreement entitled “Agreement between the Secretary of Defense of the United States of America and the Minister of Defense of the Federal Republic of Germany on Cooperative Measures for Enhancing Air Defense for Central Europe”, signed on December 6, 1983; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the agreement entitled “Agreement between the Secretary of Defense of the United States of America and the Minister of Defense of the Federal Republic of Germany in implementation of the 6 December 1983 Agreement on Cooperative Measures for Enhancing Air Defense for Central Europe”, signed on July 12, 1984.</content></paragraph> </subsection> </section> <section> <num value="1065">SEC. 1065. </num><heading>SALE OF EXCESS, OBSOLETE, OR UNSERVICEABLE AMMUNITION AND AMMUNITION COMPONENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Authority</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Chapter 443 of title 10, United States Code, is amended by adding at the end the following new section:<page identifier="/us/stat/111/1894">111 STAT. 1894</page> <num value="4687">“§ 4687. </num>Sale of excess, obsolete, or unserviceable ammunition and ammunition components <quotedContent> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Authority To Sell Outside DoD</inline>.—</heading><chapeau>The Secretary of the Army may sell to an eligible purchaser described in subsection (c) ammunition or ammunition components that are excess, obsolete, or unserviceable and have not been demilitarized if—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><chapeau>the purchaser enters into an agreement, in advance, with the Secretary—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>to demilitarize the ammunition or components; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>to reclaim, recycle, or reuse the component parts or materials; or</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>the Secretary, or an official of the Department of the Army designated by the Secretary, approves the use of the ammunition or components proposed by the purchaser as being consistent with the public interest.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Method of Sale</inline>.—</heading><content>The Secretary shall use competitive procedures to sell ammunition and ammunition components under this section, except that the Secretary may use procedures other than competitive procedures in any case in which the Secretary determines that there is only one potential buyer of the items being offered for sale.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Eligible Purchasers</inline>.—</heading><content>To be eligible to purchase excess, obsolete, or unserviceable ammunition or ammunition components under this section, the purchaser shall be a licensed manufacturer (as defined in section 921(10) of title 18) that, as determined by the Secretary, has a capability to modify, reclaim, transport, and either store or sell the ammunition or ammunition components sought to be purchased.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Hold Harmless Agreement</inline>.—</heading><content>The Secretary shall require a purchaser of ammunition or ammunition components under this section to agree to hold harmless and indemnify the United States from any claim for damages for death, injury, or other loss resulting from a use of the ammunition or ammunition components, except in a case of willfill misconduct or gross negligence of a representative of the United States.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote><heading><inline class="smallCaps">Verification of Demilitarization</inline>.—</heading><content>The Secretary shall establish procedures for ensuring that a purchaser of ammunition or ammunition components under this section demilitarizes the ammunition or ammunition components in accordance with any agreement to do so under subsection (a)(1). The procedures shall include onsite verification of demilitarization activities.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f) </num><heading><inline class="smallCaps">Consideration</inline>.—</heading><content>The Secretary may accept ammunition, ammunition components, or ammunition demilitarization services as consideration for ammunition or ammunition components sold under this section. The fair market value of any such consideration shall be equal to or exceed the fair market value or, if higher, the sale price of the ammunition or ammunition components sold.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g) </num><heading><inline class="smallCaps">Relationship to Arms Export Control Act</inline>.—</heading><content>Nothing in this section shall be construed to affect the applicability of section 38 of the Arms Export Control Act (22 U.S.C. 2778) to sales of ammunition or ammunition components on the United States Munitions List.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="h">“(h) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>In this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>The term ‘excess, obsolete, or unserviceable’, with respect to ammunition or ammunition components, means that <page identifier="/us/stat/111/1895">111 STAT. 1895</page>the ammunition or ammunition components are no longer necessary for war reserves or for support of training of the Army or production of ammunition or ammunition components.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><chapeau>The term ‘demilitarize’, with respect to ammunition or ammunition components—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>means to destroy the military offensive or defensive advantages inherent in the ammunition or ammunition components; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>includes any mutilation, scrapping, melting, burning, or alteration that prevents the use of the ammunition or ammunition components for the military purposes for which the ammunition or ammunition components was designed or for a lethal purpose.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of such chapter is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“4687.</designator> <label>Sale of excess, obsolete, or unserviceable ammunition and ammunition components”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Review of Initial Sales</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>For each of the first three<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s4687">10 USC 4687 note</ref>.</p></sidenote> fiscal years during which the Secretary of the Army sells ammunition or ammunition components under the authority of section 4687 of title 10, United States Code, as added by subsection (a), the Director of the Army Audit Agency shall conduct a review of sales under such section to ensure that—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>purchasers that enter into an agreement under subsection (a)(1) of such section to demilitarize the purchased ammunition or ammunition components fully comply with the agreement; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>purchasers that are authorized under subsection (a)(2) of such section to use the purchased ammunition or ammunition components actually use the ammunition or ammunition components in the manner proposed.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Not later than 180 days after the end of each fiscal year<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> in which the review is conducted, the Secretary of the Army shall submit to Congress a report containing the results of the review for the fiscal year covered by the report.</content></paragraph> </subsection> </section> <section> <num value="1066">SEC. 1066. </num><heading>TRANSFER OF B–17 AIRCRAFT TO MUSEUM.</heading><sidenote><p class="indent0 firstIndent0 fontsize8">California.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Authority</inline>.—</heading><content>The Secretary of the Air Force may convey, without consideration to the Planes of Fame Museum, Chino, California (in this section referred to as the “museum”), all right, title, and interest of the United States in and to the B–17 aircraft known as the “Picadilly Lilly”, an aircraft that has been in the possession of the museum since 1959. Such a conveyance shall be made by means of a conditional deed of gift.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Condition of Aircraft</inline>.—</heading><content>The Secretary may not convey ownership of the aircraft under subsection (a) until the Secretary determines that the museum has altered the aircraft in such manner as the Secretary determines necessary to ensure that the aircraft does not have any capability for use as a platform for launching or releasing munitions or any other combat capability that it was designed to have. The Secretary is not required to repair or alter the condition of the aircraft before conveying ownership of the aircraft.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Reverter Upon Transfer of Ownership or Possession</inline>.—</heading><chapeau>The Secretary shall include in the instrument of conveyance of the aircraft—<page identifier="/us/stat/111/1896">111 STAT. 1896</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>a condition that the museum not convey any ownership interest in, or transfer possession of, the aircraft to any other party without the prior approval of the Secretary of the Air Force; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>a condition that if the Secretary of the Air Force determines at any time that the museum has conveyed an ownership interest in, or transferred possession of, the aircraft to any other party without the prior approval of the Secretary, all right, title, and interest in and to the aircraft, including any repair or alteration of the aircraft, shall revert to the United States, and the United States shall have the right of immediate possession of the aircraft.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Conveyance at No Cost to the United States</inline>.—</heading><content>The conveyance authorized by this section shall be made at no cost to the United States. Any costs associated with such conveyance, including costs of determining compliance with subsection (b), shall be borne by the museum.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Additional Terms and Conditions</inline>.—</heading><content>The Secretary of the Air Force may require such additional terms and conditions in connection with the conveyance under this section as the Secretary considers appropriate to protect the interests of the United States.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Clarification of Liability</inline>.—</heading><content>Notwithstanding any other provision of law, upon conveyance of ownership of the B–17 aircraft specified in subsection (a) to the museum, the United States shall not be liable for any death, injury, loss, or damage that results from any use of that aircraft by any person other than the United States.</content> </subsection> </section> <section> <num value="1067">SEC. 1067. </num><heading>REPORT ON DISPOSAL OF EXCESS AND SURPLUS MATERIALS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Report Required</inline>.—</heading><content>Not later than January 31, 1998, the Secretary of Defense shall submit to Congress a report on the actions that have been taken or are planned to be taken within the Department of Defense to address problems with the sale or other disposal of materials that are excess or surplus to the needs of the Department of Defense.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Required Content</inline>.—</heading><chapeau>At a minimum, the report shall address the following issues:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The effort to standardize the coding of military equipment for demilitarization at all stages of the process, from initial acquisition through disposal.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The changes underway to improve the methods used for the demilitarization of military equipment.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Recent efforts to improve the accuracy of coding performed by Government employees and contractor employees.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Recent efforts to improve the enforcement of the penalties that are applicable to Government employees and contractor employees who fail to comply with rules or procedures applicable to the demilitarization of military equipment.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>The methods of oversight and enforcement used by the Department of Defense to review the demilitarization of military equipment by the purchasers of the equipment.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>The current and planned controls designed to prevent the inappropriate transfer of excess military equipment outside the United States.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>The current procedures used by the Department, including repurchase, to recover military equipment that is sold or <page identifier="/us/stat/111/1897">111 STAT. 1897</page>otherwise disposed of without appropriate action having been taken to demilitarize the equipment or to provide for demilitarization of the equipment.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>The legislative changes, if any, that would be necessary to improve the recovery rate under the procedures identified under paragraph (7).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Identification of Frequent Errors and Misuse</inline>.—</heading><chapeau>Based on fiscal year 1997 findings, the Secretary of Defense shall identify in the report—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the 50 categories of military equipment that most frequently received an erroneous demilitarization code; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the categories of military equipment that are particularly vulnerable to improper use after disposal.</content></paragraph> </subsection> </section> </subtitle> <subtitle> <num value="G">Subtitle G—</num><heading>Other Matters</heading> <section> <num value="1071">SEC. 1071. </num><heading>AUTHORITY FOR SPECIAL AGENTS OF THE DEFENSE CRIMINAL INVESTIGATIVE SERVICE TO EXECUTE WARRANTS AND MAKE ARRESTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Authority</inline>.—</heading><content>Chapter 81 of title 10, United States Code, is amended by inserting after section 1585 the following new section: <quotedContent> <section> <num value="1585a">“§ 1585a. </num><heading>Special agents of the Defense Criminal Investigative Service: authority to execute warrants and make arrests</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Authority</inline>.—</heading><chapeau>The Secretary of Defense may authorize any DCIS special agent described in subsection (b)—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>to execute and serve any warrant or other process issued under the authority of the United States; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><chapeau>to make arrests without a warrant—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>for any offense against the United States committed in the presence of that agent; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>for any felony cognizable under the laws of the United States if the agent has probable cause to believe that the person to be arrested has committed or is committing the felony.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Agents To Have Authority</inline>.—</heading><content>Subsection (a) applies to<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> any DCIS special agent whose duties include conducting, supervising, or coordinating investigations of criminal activity in programs and operations of the Department of Defense.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Guidelines on Exercise of Authority</inline>.—</heading><content>The authority provided under subsection (a) shall be exercised in accordance with guidelines prescribed by the Inspector General of the Department of Defense and approved by the Attorney General and any other applicable guidelines prescribed by the Secretary of Defense or the Attorney General.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">DCIS Special Agent Defined</inline>.—</heading><content>In this section, the term ‘DCIS special agent’ means an employee of the Department of Defense who is a special agent of the Defense Criminal Investigative Service (or any successor to that service).”.<page identifier="/us/stat/111/1898">111 STAT. 1898</page></content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 1585 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“1585a.</designator> <label>Special agents of the Defense Criminal Investigative Service: authority to execute warrants and make arrests.”</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="1072">SEC. 1072. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s113">10 USC 113 note</ref>.</p></sidenote><heading>STUDY OF INVESTIGATIVE PRACTICES OF MILITARY CRIMINAL INVESTIGATIVE ORGANIZATIONS RELATING TO SEX CRIMES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Independent Study Required</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of Defense shall provide for an independent study of the policies, procedures, and practices of the military criminal investigative organizations for the conduct of investigations of complaints of sex crimes and other criminal sexual misconduct arising in the Armed Forces.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The Secretary shall provide for the study to be conducted by the National Academy of Public Administration. The amount of a contract for the study may not exceed $2,000,000.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><content>The Secretary shall require that all components of the Department of Defense cooperate fully with the organization carrying out the study.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Matters To Be Included in Study</inline>.—</heading><chapeau>The Secretary shall require that the organization conducting the study under this section specifically consider each of the following matters:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The need (if any) for greater organizational independence and autonomy for the military criminal investigative organizations than exists under current chain-of-command structures within the military departments.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The authority of each of the military criminal investigative organizations to investigate allegations of sex crimes and other criminal sexual misconduct and the policies of those organizations for carrying out such investigations.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><chapeau>The training (including training in skills and techniques related to the conduct of interviews) provided by each of those organizations to agents or prospective agents responsible for conducting or providing support to investigations of alleged sex crimes and other criminal sexual misconduct, including—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the extent to which that training is comparable to the training provided by the Federal Bureau of Investigation and other civilian law enforcement agencies; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the coordination of training and investigative policies related to alleged sex crimes and other criminal sexual misconduct of each of those organizations with the Federal Bureau of Investigation and other civilian Federal law enforcement agencies.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><chapeau>The procedures and relevant professional standards of each military criminal investigative organization with regard to recruitment and hiring of agents, including an evaluation of the extent to which those procedures and standards provide for—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>sufficient screening of prospective agents based on background investigations; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>obtaining sufficient information about the qualifications and relevant experience of prospective agents.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>The advantages and disadvantages of establishing, within each of the military criminal investigative organizations or within the Defense Criminal Investigative Service only, a <page identifier="/us/stat/111/1899">111 STAT. 1899</page>special unit for the investigation of alleged sex crimes and other criminal sexual misconduct.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>The clarity of guidance for, and consistency of investigative tactics used by, each of the military criminal investigative organizations for the investigation of alleged sex crimes and other criminal sexual misconduct, together with a comparison with the guidance and tactics used by the Federal Bureau of Investigation and other civilian law enforcement agencies for such investigations.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>The number of allegations of agent misconduct in the investigation of sex crimes and other criminal sexual misconduct for each of those organizations, together with a comparison with the number of such allegations concerning agents of the Federal Bureau of Investigation and other civilian law enforcement agencies for such investigations.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>The procedures of each of the military criminal investigative organizations for administrative identification (known as “titling”) of persons suspected of committing sex crimes or other criminal sexual misconduct, together with a comparison with the comparable procedures of the Federal Bureau of Investigation and other civilian Federal law enforcement agencies for such investigations.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><content>The accuracy, timeliness, and completeness of reporting of sex crimes and other criminal sexual misconduct by each of the military criminal investigative organizations to the National Crime Information Center maintained by the Department of Justice.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10) </num><content>Any recommendation for legislation or administrative action to revise the organizational or operational arrangements of the military criminal investigative organizations or to alter recruitment, training, or operational procedures, as they pertain to the investigation of sex crimes and other criminal sexual misconduct.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Report</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of Defense shall require the organization conducting the study under this section to submit to the Secretary a report on the study not later than one year after the date of the enactment of this Act. The organization shall include in the report its findings and conclusions concerning each of the matters specified in subsection (b).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The Secretary shall submit the report under paragraph (1), together with the Secretary’s comments on the report, to Congress not later than 30 days after the date on which the report is submitted to the Secretary under paragraph (1).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Military Criminal Investigative Organization Defined</inline>.—</heading><chapeau>For the purposes of this section, the term “military criminal investigative organization” means any of the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The Army Criminal Investigation Command.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The Naval Criminal Investigative Service.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The Air Force Office of Special Investigations.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The Defense Criminal Investigative Service.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Criminal Sexual Misconduct Defined</inline>.—</heading><content>For the purposes of this section, the term “criminal sexual misconduct” means conduct by a member of the Armed Forces involving sexual abuse, sexual harassment, or other sexual misconduct that constitutes an offense under the Uniform Code of Military Justice.<page identifier="/us/stat/111/1900">111 STAT. 1900</page></content> </subsection> </section> <section> <num value="1073">SEC. 1073. </num><heading>TECHNICAL AND CLERICAL AMENDMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Title 10, United States Code</inline>.—</heading><chapeau>Title 10, United States Code, is amended as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The tables of chapters at the beginning of subtitle A, and at the beginning of part I of subtitle A, are each amended by striking out “471” in the item relating to chapter 23 and inserting in lieu thereof “481”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The tables of chapters at the beginning of subtitle A, and at the beginning of part IV of subtitle A, are each amended by striking out “2540” in the item relating to chapter 152 and inserting in lieu thereof “2541”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Section 116(b)(2) is amended by striking out “such subsection” and inserting in lieu thereof “subsection (a)”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Section 129c(e)(1) is amended by striking out “section 115a(g)(2)” and inserting in lieu thereof “section 115a(e)(2)”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Section 193(d)(1) is amended by striking out “performs” and inserting in lieu thereof “perform”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>Section 382(g) is amended by striking out “the date of the enactment of the National Defense Authorization Act for Fiscal Year 1997” and inserting in lieu thereof “September 23, 1996”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>Section 443(b)(1) is amended by striking out the period at the end and inserting in lieu thereof a semicolon.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><chapeau>Section 445 is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking “<quotedText>(1)</quotedText>” before “Except with”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by redesignating subparagraphs (A), (B), and (C) as paragraphs (1), (2), and (3), respectively;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>by striking “<quotedText>(2)</quotedText>” before “Whenever it appears” and inserting “<quotedText>(b) <inline class="smallCaps">Injunctive Relief</inline>.—</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>by striking out “paragraph (1)” and inserting in lieu thereof “subsection (a)”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><content>Section 858b(a)(1) is amended in the first sentence by striking out “forfeiture” and all that follows through “due that member” and inserting in lieu thereof “forfeiture of pay, or of pay and allowances, due that member”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10) </num><content>The item relating to section 895 (article 95) in the table of sections at the beginning of subchapter X of chapter 47 is amended by striking out “Art.”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="11">(11) </num><chapeau>Section 943(c) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by capitalizing the initial letter of the third word of the subsection heading;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>in the second sentence, by striking out “Court” and inserting in lieu thereof “court”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>in the third sentence, by striking out “such positions” and inserting in lieu thereof “positions referred to in the preceding sentences”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="12">(12) </num><content>Section 954 is amended by striking out “this” and inserting in lieu thereof “his”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="13">(13) </num><content>Section 971(b)(4) is amended by capitalizing the first letter of the fifth and sixth words.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="14">(14) </num><content>Section 972(b) is amended by striking out “the date of the enactment of the National Defense Authorization Act for Fiscal Year 1996” in the matter preceding paragraph (1) and inserting in lieu thereof “February 10, 1996”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="15">(15) </num><content>Section 976(f) is amended by striking out “shall,” and all that follows and inserting in lieu thereof “shall be fined under title 18 or imprisoned not more than 5 years, or both, <page identifier="/us/stat/111/1901">111 STAT. 1901</page>except that, in the case of an organization (as defined in section 18 of such title), the fine shall not be less than $25,000.”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="16">(16) </num><chapeau>Section 977 is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>in subsection (c), by striking out “Beginning on October 1, 1996, not more than” and inserting in lieu thereof “Not more than”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>in subsection (d)(2), by striking out “before October 1, 1996,” and all that follows through “so assigned” the second place it appears.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="17">(17) </num><content>Section 1078a(g)(4)(B)(iii)(II) is amended by striking out “section 1447(8)” and inserting in lieu thereof “section 1447(13)”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="18">(18) </num><chapeau>Section 1129(c) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking out “the date of the enactment of this section,” and inserting in lieu thereof “November 30, 1993,”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking out “before the date of the enactment of this section or” and inserting in lieu thereof “before such date or”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="19">(19) </num><content>Section 1151(b) is amended by capitalizing the first letter of the second word in the subsection heading.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="20">(20) </num><content>Section 1152(g) is amended by inserting “<quotedText>(1)</quotedText>” before “The Secretary may”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="21">(21) </num><content>Section 1143(d) is amended by striking out “section 806(a)(2) of the Military Family Act of 1985” and inserting in lieu thereof “section 1784(a)(2) of this title”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="22">(22) </num><content>Section 1174(a)(1) is amended by striking out “, 1177,”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="23">(23) </num><chapeau>Section 1406 is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking out “3962(b)” in footnote number 3 in the table in subsection (b)(1) and in footnote number 1 in the table in subsection (c)(1) and inserting in lieu thereof “3962”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking out “8962(b)” in footnote number 3 in the table in subsection (b)(1) and in footnote number 1 in the table in subsection (e)(1) and inserting in lieu thereof “8962”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="24">(24) </num><chapeau>Section 1408(d) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by decapitalizing the first letter of the fifth word in the subsection heading;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by redesignating the second paragraph (6) as paragraph (7); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>in paragraph (7), as so redesignated, by striking out “out-of State” in subparagraph (A) and inserting in lieu thereof “out-of-State”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="25">(25) </num><content>Section 1408(g) is amended by decapitalizing the first letter of the second and ninth words in the subsection heading.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="26">(26) </num><content>Section 1444a(b) is amended by striking out “section 1455(c)” and inserting in lieu thereof “section 1455(d)(2)”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="27">(27) </num><content>Section 1448 is amended by capitalizing the first letter of the third word of the section heading.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="28">(28) </num><content>Section 1451(a)(2) is amended by inserting a period in the paragraph heading before the one-em dash.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="29">(29) </num><chapeau>Section 1452 is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>in subsection (a)(1)(A), by striking out “providing” in the matter preceding clause (i) and inserting in lieu thereof “provided”; and<page identifier="/us/stat/111/1902">111 STAT. 1902</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>in subsection (e), by striking out “section 8339(i)” and “section 8331(b)” and inserting in lieu thereof “section 8339(j)” and “section 8341(b)”, respectively.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="30">(30) </num><content>Section 1504(i)(1) is amended by striking out “this subsection” and inserting in lieu thereof “this section”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="31">(31) </num><content>Section 1599c(c)(1)(F) is amended by striking out “Sections 106(f)” and inserting in lieu thereof “Sections 106(e)”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="32">(32) </num><content>Section 1613(a) is amended by striking out “1604” and inserting in lieu thereof “1603”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="33">(33) </num><chapeau>Section 1763 is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking out “On and after October 1, 1993, the Secretary of Defense” and inserting in lieu thereof “The Secretary of Defense”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking out “secretaries” and inserting in lieu thereof “Secretaries”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="34">(34) </num><chapeau>Section 1792 is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>in subsection (a)(1), by striking out the comma after “implementing”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>in subsection (d)(2), by striking out “section 1794” and inserting in lieu thereof “section 1784”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="35">(35) </num><content>Section 2010(e) is repealed.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="36">(36) </num><content>Section 2107a(g) is amended by inserting “<quotedText>the</quotedText>” after “August 1, 1979, as a member of”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="37">(37) </num><content>Section 2109(c)(1)(A) is amended by striking out “section 2106(b)(6)” and inserting in lieu thereof “section 2104(b)(6)”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="38">(38) </num><content>Section 2114(h) is amended by striking out “section 2123(e)(1)” and inserting in lieu thereof “section 2123(e)”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="39">(39) </num><content>Section 2198(c) is amended by striking out “identified in” and all that follows through the period at the end and inserting in lieu thereof “that is identified under section 2505 of this title as critical for attaining the national security objectives set forth in section 2501(a) of this title.”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="40">(40) </num><content>Section 2249a(a)(1) is amended by striking out “50 App. 2405(j)” and inserting in lieu thereof “50 U.S.C. App. 2405(j)(1)(A)”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="41">(41) </num><content>Section 2302d(a)(2) is amended by striking out “procurement of” and inserting in lieu thereof “procurement for the system is estimated to be”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="42">(42) </num><content>Section 2304(c)(5) is amended by striking out “subsection (j)” and inserting in lieu thereof “subsection (k)”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="43">(43) </num><chapeau>Section 2304(f) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>in paragraph (1)(B)(iii), by striking out “(6)(C)” and inserting in lieu thereof “(6)(B)”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><chapeau>in paragraph (6)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>by striking out subparagraph (B); and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>by redesignating subparagraph (C) as subparagraph (B) and in that subparagraph by striking out “paragraph (1)(B)(iv)” and inserting in lieu thereof “paragraph (1)(B)(iii)”.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="44">(44) </num><content>Section 2305a(a) is amended by striking out “(41 U.S.C.” and inserting in lieu thereof “(40 U.S.C.”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="45">(45) </num><content>Section 2306(h) is amended by inserting “<quotedText>for the purchase of property</quotedText>” after “Multiyear contracting authority”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="46">(46) </num><content>Section 2306a(a)(5) is amended by striking out “subsection (b)(1)(B)” and inserting in lieu thereof “subsection (b)(1)(C)”.<page identifier="/us/stat/111/1903">111 STAT. 1903</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="47">(47) </num><content>Section 2306b is amended by striking out “this subsection” in the first sentence of subsection (k) and inserting in lieu thereof “this section”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="48">(48) </num><subparagraph class="inline"><num value="A">(A) </num><content>The heading of section 2306b is amended to read as follows: <quotedContent> <section> <num value="2306b">“§ 2306b. </num><heading>Multiyear contracts: acquisition of property”.</heading> </section> </quotedContent> </content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>The item relating to such section in the table of sections at the beginning of chapter 137 is amended to read as follows: <quotedContent> <toc> <referenceItem role="section"><designator>“2306b.</designator> <label>Multiyear contracts: acquisition of property.”.</label></referenceItem> </toc> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="49">(49) </num><content>Section 2315(a) is amended by striking out “the Information Technology Management Reform Act of 1996” and inserting in lieu thereof “division E of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401 et seq.)”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="50">(50) </num><content>Section 2371a is amended by inserting “<quotedText>Defense</quotedText>” before “Advanced Research Projects Agency”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="51">(51) </num><chapeau>Section 2375(c) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking out “provisions relating to exceptions” and inserting in lieu thereof “a provision relating to an exception”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking out “section 2306a(d)” and inserting in lieu thereof “section 2306a(b)”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="52">(52) </num><content>Section 2401a(a) is amended by striking out “leasing of such vehicles” and inserting in lieu thereof “such leasing”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="53">(53) </num><content>Section 2491(8) is amended by striking out “that appears” and all that follows through the period at the end and inserting in lieu thereof “that is identified under section 2505 of this title as critical for attaining the national security objectives set forth in section 2501(a) of this title.”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="54">(54) </num><content>Section 2533(a) is amended by striking out the first closing parenthesis after “41 U.S.C. 10a”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="55">(55) </num><content>Section 2534(b)(3) is amended by striking out “(a)(3)(A)(ii)” and inserting in lieu thereof “(a)(3)(A)(iii)”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="56">(56) </num><content>Section 2554(c)(1) is amended by striking out “the date of the enactment of this Act” and inserting in lieu thereof “September 23, 1996”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="57">(57) </num><content>Section 2645(a)(1)(B) is amended by striking out “on which” after “the date on which”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="58">(58) </num><content>Section 2684(b) is amended by striking out “, United States Code,”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="59">(59) </num><content>Section 2694(b)(1)(D) is amended by striking out “executive ageny” and inserting in lieu thereof “executive agency”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="60">(60) </num><content>Section 2878(d)(4) is amended by striking out “11401” and inserting in lieu thereof “11411”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="61">(61) </num><content>Section 2885 is amended by striking out “five years after the date of the enactment of the National Defense Authorization Act for Fiscal Year 1996” and inserting in lieu thereof “on February 10, 2001”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="62">(62) </num><content>Sections 4342(a)(10), 6954(a)(10), and 9342(a)(10) are amended by striking out “Marianas” and inserting in lieu thereof “Mariana”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="63">(63) </num><content>Section 7606(e) is amended by striking out “sections” and inserting in lieu thereof “section”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="64">(64) </num><content>Section 7902(b)(8) is amended by inserting “<quotedText>United States</quotedText>” before “Geological Survey”.<page identifier="/us/stat/111/1904">111 STAT. 1904</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="65">(65) </num><content>Section 8038(e) is amended by striking out “(1)”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="66">(66) </num><content>The item relating to section 8069 in the table of sections at the beginning of chapter 807 is amended by striking out “Nurse Corps” and inserting in lieu thereof “nurses”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="67">(67) </num><chapeau>Section 12733(3) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by inserting a comma after “(B)”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking out “in which the date of the enactment of the National Defense Authorization Act for Fiscal Year 1997 occurs” and inserting in lieu thereof “that includes September 23, 1996,”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="68">(68) </num><content>Section 14317(d) is amended by striking out “section 14314” in the first sentence and inserting in lieu thereof “section 14315”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Title 37, United States Code</inline>.—</heading><content>Section 205(d) of title 37, United States Code, is amended by striking out the period after “August 1, 1979” and inserting in lieu thereof a comma.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2502">10 USC 2502 note</ref>.</p><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote><heading><inline class="smallCaps">Public Law 104–201</inline>.—</heading><chapeau>Effective as of September 23, 1996, and as if included therein as enacted, the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201) is amended as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2706">10 USC 2706 note</ref>.</p></sidenote><content>Section 324(b)(2) (110 Stat. 2480) is amended by inserting after “<quotedText>In this subsection</quotedText>” the following: “and subsection (c)”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>Section 367 (110 Stat. 2496) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2554">10 USC 2554</ref>.</p></sidenote><content>in subsection (a), by striking out “Subchapter II of chapter” and inserting in lieu thereof “Chapter”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>in subsection (b), by striking out “subchapter” and inserting in lieu thereof “chapter”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s4411">10 USC 4411 note</ref>.</p></sidenote><content>Section 371(a) (110 Stat. 2499) is amended by striking out “Section 559(a)(1)” and inserting in lieu thereof “Section 559”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s12733">10 USC 12733.</ref></p></sidenote><content>Section 531(a) (110 Stat. 2517) is amended by inserting “<quotedText>of title 10, United States Code,</quotedText>” before “is amended”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s302c">10 USC 302c</ref>.</p></sidenote><content>Section 614(b)(2)(B) (110 Stat. 2544) is amended by striking out “the period” and inserting in lieu thereof “the semicolon”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2302">10 USC 2302 note</ref>.</p></sidenote><content>Section 802(1) (110 Stat. 2604) is amended by striking out “1995” in the first quoted matter therein and inserting in lieu thereof “1996”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2502">10 USC 2502</ref>.</p></sidenote><chapeau>Section 829(c) (110 Stat. 2612) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>in paragraph (2), by striking out “Section 2502(b)” and inserting in lieu thereof “Section 2502(c)”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by redesignating paragraph (3) as subparagraph (C) of paragraph (2).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s441">10 USC 441 note</ref>.</p></sidenote><content>Section 1116(b) (110 Stat. 2686) is amended by striking out “section 1122” and inserting in lieu thereof “section 1111”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><chapeau>Section 1606 (110 Stat. 2737) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s901">20 USC 901</ref>.</p></sidenote><chapeau>in subsection (a)(1)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>by striking out the comma before “or are”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>by inserting a semicolon after “Secretary of Defense”;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s903">20 USC 903</ref>.</p></sidenote><content>in subsection (b)(1)(A), by striking out “Secretary of each” and inserting in lieu thereof “secretary of each”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>in subsection (b)(2)(B), by inserting a semicolon after “Defense”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Other Annual Defense Authorization Acts</inline>.—<page identifier="/us/stat/111/1905">111 STAT. 1905</page></heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>Effective as of February 10, 1996, and as if included<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 fontsize10"><ref href="/us/usc/t10/s1076">10 USC 1076 note</ref>.</p></sidenote> therein as enacted, the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104–106) is amended as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>Section 321(a)(2)(A) (110 Stat. 251) is amended<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2701">10 USC 2701 note</ref>.</p></sidenote> by striking out “2710(d)” and inserting in lieu thereof “2701(d)”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>Section 356(d)(3) (110 Stat. 271) is amended by<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2461">10 USC 2461 note</ref>.</p></sidenote> striking out “or” after “to any provision” and inserting in lieu thereof “of”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>Section 533(b) (110 Stat. 315) is amended by inserting<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s6975">10 USC 6975, 6975 note</ref>.</p></sidenote> before the period at the end the following: “and the amendments made by subsection (b), effective as of October 5, 1994”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>Section 703(b) (110 Stat. 372) is amended by striking<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1076">10 USC 1076</ref>.</p></sidenote> out “Such paragraph” and inserting in lieu thereof “Such section”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E) </num><chapeau>Section 1501 (110 Stat. 500) is amended—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>in subsection (d)(1), by striking out “337(b)”<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s10154">10 USC 10154</ref>.</p></sidenote> and “2717” and inserting in lieu thereof “377(b)” and “2737”, respectively; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>in subsection (f)(2), by inserting “<quotedText>of the Reserve<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s10001">10 USC 10001 note</ref>.</p></sidenote> Officer Personnel Management Act</quotedText>” before “shall take”.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>The National Defense Authorization Act for Fiscal Year 1993 (Public Law 102–484) is amended as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>Section 812(c) (10 U.S.C. 1723 note) is amended by inserting “and Technology” after “for Acquisition”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>Section 1091(<i>l</i>)(3) (32 U.S.C. 501 note) is amended by striking out “the day preceding the date of the enactment of this Act” and inserting in lieu thereof “October 19, 1994”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>Section 4471 (10 U.S.C. 2501 note) is amended by realigning subsection (e) so as to be flush to the left margin.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Section 807(b)(2)(A) of the National Defense Authorization Act for Fiscal Years 1992 and 1993 (Public Law 102190; 10 U.S.C. 2320 note) is amended by inserting before the period the following: “and Technology”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><chapeau>The National Defense Authorization Act for Fiscal Year 1991 (Public Law 101–510) is amended as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>Section 1205 (10 U.S.C. 1746 note) is amended by striking out “Under Secretary of Defense for Acquisition” each place it appears and inserting in lieu thereof “Under Secretary of Defense for Acquisition and Technology”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><chapeau>Section 2905 (10 U.S.C. 2687 note) is amended—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>in subsection (b)(7), by striking out “4331” in subparagraphs (K)(iii) and (L)(iv)(III) and inserting in lieu thereof “4321”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>in subsection (f)(3), by striking out “section 2873(a)” and inserting in lieu thereof “section 2883(a)”.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><chapeau>Section 2921 (10 U.S.C. 2687 note) is amended—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>in subsection (e)(3)(B), by striking out “Defense Subcommittees” and inserting in lieu thereof “Subcommittee on Defense”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>in subsection (f)(2), by striking out “the Committees on Armed Services of the Senate and House of Representatives” and inserting in lieu thereof <page identifier="/us/stat/111/1906">111 STAT. 1906</page>“the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives”.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Section 1121(c) of the National Defense Authorization Act for Fiscal Years 1988 and 1989 (Public Law 100–180; 10 U.S.C. 113 note) is amended by striking out “under this section—” and all that follow through “fiscal year 1990” and inserting in lieu thereof “under this section may not exceed 5,000 during any fiscal year”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>Section 204(e)(3) of the Defense Authorization Amendments and Base Closure and Realignment Act (Public Law 100–526; 10 U.S.C. 2687 note) is amended by striking out “section 2873(a)” and inserting in lieu thereof “section 2883(a)”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Title 5, United States Code</inline>.—</heading><chapeau>Title 5, United States Code, is amended as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>Section 5315 is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>in the item relating to the Chief Information Officer of the Department of the Interior, by inserting “<quotedText>the</quotedText>” before “Interior”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>in the item relating to the Chief Information Officer of the Department of the Treasury, by inserting “<quotedText>the</quotedText>” before “Treasury”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Section 5316 is amended by striking out “Atomic Energy” after “Assistant to the Secretary of Defense for” and inserting in lieu thereof “Nuclear and Chemical and Biological Defense Programs”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Act of August 10, 1956</inline>.—</heading><content>Section 3(a)(3) of the Act of August 10, 1956 (33 U.S.C. 857a) is amended by striking out “1374,”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num><heading><inline class="smallCaps">Acquisition Policy Statutes</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Section 309 of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 259) is amended by striking out “and” at the end of subsection (b)(2).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>The Office of Federal Procurement Policy Act is amended as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>The item relating to section 27 in the table of contents in section 1(b) is amended to read as follows: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 27.</designator> <label>Restrictions on disclosing and obtaining contractor bid or proposal information or source selection information.”.</label></referenceItem> </toc> </quotedContent> </content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><chapeau>Section 6(d) (41 U.S.C. 405(d)) is amended—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>by striking out the period at the end of paragraph (5)(J) and inserting in lieu thereof a semicolon;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>by moving paragraph (6) two ems to the left; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii) </num><content>in paragraph (12), by striking out “small business” and inserting in lieu thereof “small businesses”. (C) Section 35(b)(2) (41 U.S.C. 431(b)(2)) is amended by striking out “commercial” and inserting in lieu thereof “commercially available”.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Section 6 of the Contract Disputes Act of 1978 (41 U.S.C. 605) is amended in subsections (d) and (e) by striking out “(as in effect on September 30, 1995)” each place it appears.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Subsections (d)(1) and (e) of section 16 of the Small Business Act (15 U.S.C. 645) are each amended by striking out “concerns” and inserting in lieu thereof “concern”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h) </num><heading><inline class="smallCaps">Amendments To Conform Change in Short Title of Information Technology Management Reform Act of 1996</inline>.—<page identifier="/us/stat/111/1907">111 STAT. 1907</page></heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Section 20 of the National Institute of Standards and Technology Act (15 U.S.C. 278g–3) is amended in subsections (a)(4) and (b)(2) by striking out “Information Technology Management Reform Act of 1996” and inserting in lieu thereof “Clinger-Cohen Act of 1996 (40 U.S.C. 1441)”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Section 612(f) of title 28, United States Code, is amended by striking out “the Information Technology Management Reform Act of 1996” and inserting in lieu thereof “division E of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401 et seq.)”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Section 310(b) of title 38, United States Code, is amended by striking out “the Information Technology Management Reform Act of 1996” and inserting in lieu thereof “division E of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401 et seq.)”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Section 6(b) of the Computer Security Act of 1987 (40 U.S.C. 1441 note) is amended by striking out “Information Technology Management Reform Act of 1996” and inserting in lieu thereof “Clinger-Cohen Act of 1996 (40 U.S.C. 1441)”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><chapeau>Chapter 35 of title 44, United States Code, is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><chapeau>in section 3502(9)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>by striking out “the Information Technology Management Reform Act of 1996” and inserting in lieu thereof “the Clinger-Cohen Act of 1996 (40 U.S.C. 1401)”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>by inserting “<quotedText>(40 U.S.C. 1452)</quotedText>” after “that Act”;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>in section 3504(h)(2), by striking out “the Information Technology Management Reform Act of 1996” and inserting in lieu thereof “division E of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401 et seq.)”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>in sections 3504(g)(2), 3504(g)(3), 3504(h)(1)(B), and 3518(d) by striking out “Information Technology Management Reform Act of 1996” and inserting in lieu thereof “Clinger-Cohen Act of 1996 (40 U.S.C. 1441)”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="i">(i) </num><heading><inline class="smallCaps">Coordination With Other Amendments</inline>.—</heading><content>For purposes<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s101">10 USC 101 note</ref>.</p></sidenote> of applying amendments made by provisions of this Act other than provisions of this section, this section shall be treated as having been enacted immediately before the other provisions of this Act.</content> </subsection> </section> <section> <num value="1074">SEC. 1074. </num><heading>SUSTAINMENT AND OPERATION OF THE GLOBAL POSITIONING SYSTEM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>Congress makes the following findings:<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2281">10 USC 2281 note</ref>.</p></sidenote></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The Global Positioning System (consisting of a constellation of satellites and associated facilities capable of providing users on earth with a highly precise statement of their location on earth) makes significant contributions to the attainment of the national security and foreign policy goals of the United States, the safety and efficiency of international transportation, and the economic growth, trade, and productivity of the United States.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The infrastructure for the Global Positioning System (including both space and ground segments of the infrastructure) is vital to the effectiveness of United States and allied military forces and to the protection of the national security interests of the United States.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>In addition to having military uses, the Global Positioning System has essential civil, commercial, and scientific uses.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><chapeau>As a result of the increasing demand of civil, commercial, and scientific users of the Global Positioning System—<page identifier="/us/stat/111/1908">111 STAT. 1908</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>there has emerged in the United States a new commercial industry to provide Global Positioning System equipment and related services to the many and varied users of the system; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>there have been rapid technical advancements in Global Positioning System equipment and services that have contributed significantly to reductions in the cost of the Global Positioning System and increases in the technical capabilities and availability of the system for military uses.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><chapeau>It is in the national interest of the United States for the United States—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>to support continuation of the multiple-use character of the Global Positioning System;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>to promote broader acceptance and use of the Global Positioning System and the technological standards that facilitate expanded use of the system for civil purposes;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>to coordinate with other countries to ensure (i) efficient management of the electromagnetic spectrum used by the Global Positioning System, and (ii) protection of that spectrum in order to prevent disruption of signals from the system and interference with that portion of the electromagnetic spectrum used by the system; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>to encourage open access in all international markets to the Global Positioning System and supporting equipment, services, and techniques.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2281">10 USC 2281 note</ref>.</p></sidenote><chapeau>International Cooperation.—Congress urges the President to promote the security of the United States and its allies, the public safety, and commercial interests by taking the following steps:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Undertaking a coordinated effort within the executive branch to seek to establish the Global Positioning System, and augmentations to the system, as a worldwide resource.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Seeking to enter into international agreements to establish signal and service standards that protect the Global Positioning System from disruption and interference.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Undertaking efforts to eliminate any barriers to, and other restrictions of foreign governments on, peaceful uses of the Global Positioning System.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Requiring that any proposed international agreement involving nonmilitary use of the Global Positioning System or any augmentation to the system not be agreed to by the United States unless the proposed agreement has been reviewed by the Secretary of State, the Secretary of Defense, the Secretary of Transportation, and the Secretary of Commerce (acting as the Interagency Global Positioning System Executive Board established by Presidential Decision Directive NSTC–6, dated March 28, 1996).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Fiscal Year 1998 Prohibition of Support of Foreign System</inline>.—</heading><content>None of the funds authorized to be appropriated under this Act may be used to support the operation and maintenance or enhancement of a satellite navigation system operated by a foreign country.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">In General</inline>.—</heading><paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>Part IV of subtitle A of title 10, United States Code, is amended by inserting after chapter 134 the following new chapter:<page identifier="/us/stat/111/1909">111 STAT. 1909</page></chapeau> <chapter> <num value="136">“CHAPTER 136—</num><heading>PROVISIONS RELATING TO SPECIFIC PROGRAMS</heading> <toc> <referenceItem role="section"><designator>“Sec.</designator> <label /></referenceItem> <referenceItem role="section"><designator>“2281.</designator> <label>Global Positioning System</label></referenceItem> </toc> <section> <num value="2281">“§ 2281. </num><heading>Global Positioning System</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Sustainment and Operation for Military Purposes</inline>.—</heading><chapeau>The Secretary of Defense shall provide for the sustainment of the capabilities of the Global Positioning System (hereinafter in this section referred to as the ‘GPS’), and the operation of basic GPS services, that are beneficial for the national security interests of the United States. In doing so, the Secretary shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>develop appropriate measures for preventing hostile use of the GPS so as to make it unnecessary for the Secretary to use the selective availability feature of the system continuously while not hindering the use of the GPS by the United States and its allies for military purposes; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>ensure that United States armed forces have the capability to use the GPS effectively despite hostile attempts to prevent the use of the system by such forces.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Sustainment and Operation for Civilian Purposes</inline>.—</heading><chapeau>The Secretary of Defense shall provide for the sustainment and operation of the GPS Standard Positioning Service for peaceful civil, commercial, and scientific uses on a continuous worldwide basis free of direct user fees. In doing so, the Secretary—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>shall provide for the sustainment and operation of the GPS Standard Positioning Service in order to meet the performance requirements of the Federal Radionavigation Plan prepared jointly by the Secretary of Defense and the Secretary of Transportation pursuant to subsection (c);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>shall coordinate with the Secretary of Transportation regarding the development and implementation by the Government of augmentations to the basic GPS that achieve or enhance uses of the system in support of transportation;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>shall coordinate with the Secretary of Commerce, the United States Trade Representative, and other appropriate officials to facilitate the development of new and expanded civil and commercial uses for the GPS;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>shall develop measures for preventing hostile use of the GPS in a particular area without hindering peaceful civil use of the system elsewhere; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><content>may not agree to any restriction on the Global Positioning System proposed by the head of a department or agency of the United States outside the Department of Defense in the exercise of that official’s regulatory authority that would adversely affect the military potential of the Global Positioning System.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Federal Radionavigation Plan</inline>.—</heading><content>The Secretary of Defense and the Secretary of Transportation shall jointly prepare the Federal Radionavigation Plan. The plan shall be revised and updated not less often than every two years. The plan shall be prepared in accordance with the requirements applicable to such plan as first prepared pursuant to section 507 of the International Maritime Satellite Telecommunications Act (47 U.S.C. 756). The<sidenote><p class="indent0 firstIndent0 fontsize8">Federal Register, publication.</p></sidenote> plan, and any amendment to the plan, shall be published in the Federal Register.<page identifier="/us/stat/111/1910">111 STAT. 1910</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Biennial Report</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>Not later than 30 days after the end of each even-numbered fiscal year, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report on the Global Positioning System. The report shall include a discussion of the following matters:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>The operational status of the system.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>The capability of the system to satisfy effectively (i) the military requirements for the system that are current as of the date of the report, and (ii) the performance requirements of the Federal Radionavigation Plan.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">“(C) </num><content>The most recent determination by the President regarding continued use of the selective availability feature of the system and the expected date of any change or elimination of the use of that feature.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="D">“(D) </num><content>The status of cooperative activities undertaken by the United States with the governments of other countries concerning the capability of the system or any augmentation of the system to satisfy civil, commercial, scientific, and military requirements, including a discussion of the status and results of activities undertaken under any regional international agreement.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="E">“(E) </num><content>Any progress made toward establishing GPS as an international standard for consistency of navigational service.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="F">“(F) </num><content>Any progress made toward protecting GPS from disruption and interference.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="G">“(G) </num><content>The effects of use of the system on national security, regional security, and the economic competitiveness of United States industry, including the Global Positioning System equipment and service industry and user industries.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>In preparing the parts of each such report required under subparagraphs (D), (E), (F), and (G) of paragraph (1), the Secretary of Defense shall consult with the Secretary of State, the Secretary of Commerce, and the Secretary of Transportation.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>In this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><chapeau>The term ‘basic GPS services’ means the following components of the Global Positioning System that are operated and maintained by the Department of Defense:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>The constellation of satellites.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>The navigation payloads that produce the Global Positioning System signals.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>The ground stations, data links, and associated command and control facilities.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The term ‘GPS Standard Positioning Service’ means the civil and commercial service provided by the basic Global Positioning System as defined in the 1996 Federal Radionavigation Plan (published jointly by the Secretary of Defense and the Secretary of Transportation in July 1997).”.</content></paragraph> </subsection> </section> </chapter> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The tables of chapters at the beginning of subtitle A, and at the beginning of part IV of subtitle A, of such title are amended by inserting after the item relating to chapter 134 the following new item: <quotedContent> <toc> <referenceItem><designator leaderChar="." leaderAlign="right">“136. Provisions Relating to Specific Programs</designator> <target>2281”.<page identifier="/us/stat/111/1911">111 STAT. 1911</page></target></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> </section> <section> <num value="1075">SEC. 1075. </num><heading>PROTECTION OF SAFETY-RELATED INFORMATION VOLUNTARILY PROVIDED BY AIR CARRIERS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Authority To Protect Information</inline>.—</heading><chapeau>Section 2640 of title 10, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by redesignating subsections (h) and (i) as subsections (i) and (j), respectively; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting after subsection (g) the following new subsection (h): <quotedContent> <subsection class="indent0 fontsize10"> <num value="h">“(h) </num><heading><inline class="smallCaps">Authority To Protect Safety-Related Information Voluntarily Provided by an Air Carrier</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Subject to paragraph (2), the Secretary of Defense may (notwithstanding any other provision of law) withhold from public disclosure safety-related information that is provided to the Secretary voluntarily by an air carrier for the purposes of this section.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><chapeau>Information may be withheld under paragraph (1) from public disclosure only if the Secretary determines that—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>the disclosure of the information would inhibit an air carrier from voluntarily providing, in the future, safety-related information for the purposes of this section or for other air safety purposes involving the Department of Defense or another Federal agency; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>the receipt of such information generally enhances the fulfillment of responsibilities under this section or other air safety responsibilities involving the Department of Defense or another Federal agency.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>If the Secretary provides to the head of another agency safety-related information described in paragraph (1) with respect to which the Secretary has made a determination described in paragraph (2), the head of that agency shall (notwithstanding any other provision of law) withhold the information from public disclosure unless the disclosure is specifically authorized by the Secretary.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Applicability</inline>.—</heading><content>Subsection (h) of section 2640 of title 10,<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2640">10 USC 2640 note</ref>.</p></sidenote> United States Code, as added by subsection (a), shall apply with respect to requests for information made on or after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1076">SEC. 1076. </num><heading>NATIONAL GUARD CHALLENGE PROGRAM TO CREATE OPPORTUNITIES FOR CIVILIAN YOUTH.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Program Authority</inline>.—</heading><content>Chapter 5 of title 32, United States Code, is amended by adding at the end the following new section: <quotedContent> <section> <num value="509">“§509. </num><heading>National Guard Challenge Program of opportunities for civilian youth</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Program Authority and Purpose</inline>.—</heading><content>The Secretary of Defense, acting through the Chief of the National Guard Bureau, may conduct a National Guard civilian youth opportunities program (to be known as the ‘National Guard Challenge Program’) to use the National Guard to provide military-based training, including supervised work experience in community service and conservation projects, to civilian youth who cease to attend secondary school before graduating so as to improve the life skills and employment potential of such youth.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Conduct of the Program</inline>.—</heading><content>The Secretary of Defense shall provide for the conduct of the National Guard Challenge Program in such States as the Secretary considers to be appropriate, <page identifier="/us/stat/111/1912">111 STAT. 1912</page>except that Federal expenditures under the program may not exceed $50,000,000 for any fiscal year.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Program Agreements</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>To carry out the National Guard Challenge Program in a State, the Secretary of Defense shall enter into an agreement with the Governor of the State or, in the case of the District of Columbia, with the commanding general of the District of Columbia National Guard, under which the Governor or the commanding general will establish, organize, and administer the National Guard Challenge Program in the State.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The agreement may provide for the Secretary to provide funds to the State for civilian personnel costs attributable to the use of civilian employees of the National Guard in the conduct of the National Guard Challenge Program.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Matching Funds Required</inline>.—</heading><chapeau>The amount of assistance provided under this section to a State program of the National Guard Challenge Program may not exceed—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>for fiscal year 1998, 75 percent of the costs of operating the State program during that year;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>for fiscal year 1999, 70 percent of the costs of operating the State program during that year;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>for fiscal year 2000, 65 percent of the costs of operating the State program during that year; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>for fiscal year 2001 and each subsequent fiscal year, 60 percent of the costs of operating the State program during that year.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Persons Eligible To Participate in Program</inline>.—</heading><content>A school dropout from secondary school shall be eligible to participate in the <sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote>National Guard Challenge Program. The Secretary of Defense shall prescribe the standards and procedures for selecting participants from among school dropouts.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f) </num><heading><inline class="smallCaps">Authorized Benefits for Participants</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>To the extent provided in an agreement entered into in accordance with subsection (c) and subject to the approval of the Secretary of Defense, a person selected for training in the National Guard Challenge Program may receive the following benefits in connection with that training:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>Allowances for travel expenses, personal expenses, and other expenses.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>Quarters.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">“(C) </num><content>Subsistence.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="D">“(D) </num><content>Transportation.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="E">“(E) </num><content>Equipment.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="F">“(F) </num><content>Clothing.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="G">“(G) </num><content>Recreational services and supplies.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="H">“(H) </num><content>Other services.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="I">“(I) </num><content>Subject to paragraph (2), a temporary stipend upon the successful completion of the training, as characterized in accordance with procedures provided in the agreement.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>In the case of a person selected for training in the National Guard Challenge Program who afterwards becomes a member of the Civilian Community Corps under subtitle E of title I of the National and Community Service Act of 1990 (42 U.S.C. 12611 et seq.), the person may not receive a temporary stipend under paragraph (1)(I) while the person is a member of that Corps. The person may receive the temporary stipend after completing service in the Corps unless the person elects to receive benefits provided <page identifier="/us/stat/111/1913">111 STAT. 1913</page>under subsection (f) or (g) of section 158 of such Act (42 U.S.C. 12618).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g) </num><heading><inline class="smallCaps">Program Personnel</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Personnel of the National Guard of a State in which the National Guard Challenge Program is conducted may serve on full-time National Guard duty for the purpose of providing command, administrative, training, or supporting services for the program. For the performance of those services, any such personnel may be ordered to duty under section 502(f) of this title for not longer than the period of the program.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>A Governor participating in the National Guard Challenge Program and the commanding general of the District of Columbia National Guard (if the District of Columbia National Guard is participating in the program) may procure by contract the temporary full time services of such civilian personnel as may be necessary to augment National Guard personnel in carrying out the National Guard Challenge Program in that State.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>Civilian employees of the National Guard performing services for the National Guard Challenge Program and contractor personnel performing such services may be required, when appropriate to achieve the purposes of the program, to be members of the National Guard and to wear the military uniform.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">“(h) </num><heading><inline class="smallCaps">Equipment and Facilities</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Equipment and facilities of the National Guard, including military property of the United States issued to the National Guard, may be used in carrying out the National Guard Challenge Program.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>Activities under the National Guard Challenge Program shall be considered noncombat activities of the National Guard for purposes of section 710 of this title.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="i">“(i) </num><heading><inline class="smallCaps">Status of Participants</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>A person receiving training under the National Guard Challenge Program shall be considered an employee of the United States for the purposes of the following provisions of law:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>Subchapter I of chapter 81 of title 5 (relating to compensation of Federal employees for work injuries).</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>Section 1346(b) and chapter 171 of title 28 and any other provision of law relating to the liability of the United States for tortious conduct of employees of the United States.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><chapeau>In the application of the provisions of law referred to in paragraph (1)(A) to a person referred to in paragraph (1)—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>the person shall not be considered to be in the performance of duty while the person is not at the assigned location of training or other activity or duty authorized in accordance with a program agreement referred to in subsection (c), except when the person is traveling to or from that location or is on pass from that training or other activity or duty;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>the person’s monthly rate of pay shall be deemed to be the minimum rate of pay provided for grade GS–2 of the General Schedule under section 5332 of title 5; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">“(C) </num><content>the entitlement of a person to receive compensation for a disability shall begin on the day following the date on which the person’s participation in the National Guard Challenge Program is terminated.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>A person referred to in paragraph (1) may not be considered an employee of the United States for any purpose other than a purpose set forth in that paragraph.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="j">“(j) </num><heading><inline class="smallCaps">Supplemental Resources</inline>.—</heading><content>To carry out the National Guard Challenge Program in a State, the Governor of the State <page identifier="/us/stat/111/1914">111 STAT. 1914</page>or, in the case of the District of Columbia, the commanding general of the District of Columbia National Guard may supplement funds made available under the program out of other resources (including gifts) available to the Governor or the commanding general. The Governor or the commanding general may accept, use, and dispose of gifts or donations of money, other property, or services for the National Guard Challenge Program.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="k">“(k) </num><heading><inline class="smallCaps">Report</inline>.—</heading><content>Within 90 days after the end of each fiscal year, the Secretary of Defense shall submit to Congress a report on the design, conduct, and effectiveness of the National Guard Challenge Program during the preceding fiscal year. In preparing the report, the Secretary shall coordinate with the Governor of each State in which the National Guard Challenge Program is carried out and, if the program is carried out in the District of Columbia, with the commanding general of the District of Columbia National Guard.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="l">“(l) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>In this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>The term ‘State’ includes the Commonwealth of Puerto Rico, the territories, and the District of Columbia.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The term ‘school dropout’ means an individual who is no longer attending any school and who has not received a secondary school diploma or a certificate from a program of equivalency for such a diploma.”.</content></paragraph> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections at the beginning of such chapter is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“509.</designator> <label>National Guard Challenge Program of opportunities for civilian youth.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="1077">SEC. 1077. </num><heading>DISQUALIFICATION FROM CERTAIN BURIAL-RELATED BENEFITS FOR PERSONS CONVICTED OF CAPITAL CRIMES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Chapter 49 of title 10, United States Code, is amended by adding at the end the following new section: <quotedContent> <section> <num value="985">“§ 985. </num><heading>Persons convicted of capital crimes: denial of certain burial-related benefits</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Prohibition of Performance of Military Honors</inline>.—</heading><content>The Secretary of a military department and the Secretary of Transportation, with respect to the Coast Guard when it is not operating as a service in the Navy, may not provide military honors at the funeral or burial of a person who has been convicted of a capital offense under Federal or State law for which the person was sentenced to death or life imprisonment without parole.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Disqualification From Burial in Military Cemeteries</inline>.—</heading><chapeau>A person convicted of a capital offense under Federal law is not entitled to or eligible for, and may not be provided, burial in—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>Arlington National Cemetery;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>the Soldiers’ and Airmen’s National Cemetery; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>any other cemetery administered by the Secretary of a military department or the Secretary of Defense.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>In this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>The term ‘capital offense’ means an offense for which the death penalty may be imposed.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The term ‘burial’ includes inurnment.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>The term ‘State’ includes the District of Columbia and any commonwealth or territory of the United States.”.<page identifier="/us/stat/111/1915">111 STAT. 1915</page></content></paragraph> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of such chapter is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“985.</designator> <label>Persons convicted of capital crimes: denial of certain burial-related benefits.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Applicability</inline>.—</heading><content>Section 985 of title 10, United States Code,<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s985">10 USC 985 note</ref>.</p></sidenote> as added by subsection (a), applies with respect to persons dying after January 1, 1997.</content> </subsection> </section> <section> <num value="1078">SEC. 1078. </num><heading>RESTRICTIONS ON THE USE OF HUMAN SUBJECTS FOR TESTING OF CHEMICAL OR BIOLOGICAL AGENTS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t50/s1520a">50 USC 1520a</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Prohibited Activities</inline>.—</heading><chapeau>The Secretary of Defense may not conduct (directly or by contract)—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>any test or experiment involving the use of a chemical agent or biological agent on a civilian population; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>any other testing of a chemical agent or biological agent on human subjects.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Exceptions</inline>.—</heading><chapeau>Subject to subsections (c), (d), and (e), the prohibition in subsection (a) does not apply to a test or experiment carried out for any of the following purposes:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Any peaceful purpose that is related to a medical, therapeutic, pharmaceutical, agricultural, industrial, or research activity.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Any purpose that is directly related to protection against toxic chemicals or biological weapons and agents.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Any law enforcement purpose, including any purpose related to riot control.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Informed Consent Required</inline>.—</heading><content>The Secretary of Defense may conduct a test or experiment described in subsection (b) only if informed consent to the testing was obtained from each human subject in advance of the testing on that subject.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Prior Notice to Congress</inline>.—</heading><content>Not later than 30 days after<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> the date of final approval within the Department of Defense of plans for any experiment or study to be conducted by the Department of Defense (whether directly or under contract) involving the use of human subjects for the testing of a chemical agent or a biological agent, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report setting forth a full accounting of those plans, and the experiment or study may then be conducted only after the end of the 30-day period beginning on the date such report is received by those committees.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Biological Agent Defined</inline>.—</heading><chapeau>In this section, the term “biological agent” means any micro-organism (including bacteria, viruses, fungi, rickettsiac, or protozoa), pathogen, or infectious substance, and any naturally occurring, bioengineered, or synthesized component of any such micro-organism, pathogen, or infectious substance, whatever its origin or method of production, that is capable of causing—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>death, disease, or other biological malfunction in a human, an animal, a plant, or another living organism;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>deterioration of food, water, equipment, supplies, or materials of any kind; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>deleterious alteration of the environment.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Report and Certification</inline>.—</heading><content>Section 1703(b) of the National Defense Authorization Act for Fiscal Year 1994 (50 U.S.C. 1523(b)) is amended by adding at the end the following new paragraph:<page identifier="/us/stat/111/1916">111 STAT. 1916</page> <quotedContent> <paragraph class="indent1 fontsize10"><num value="9">“(9) </num><chapeau>A description of any program involving the testing of biological or chemical agents on human subjects that was carried out by the Department of Defense during the period covered by the report, together with—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>a detailed justification for the testing;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>a detailed explanation of the purposes of the testing;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>a description of each chemical or biological agent tested; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>the Secretary’s certification that informed consent to the testing was obtained from each human subject in advance of the testing on that subject.”.</content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num><heading><inline class="smallCaps">Repeal of Superseded Provision of Law</inline>.—</heading><content>Section 808 of the Department of Defense Appropriation Authorization Act, 1978 (50 U.S.C. 1520), is repealed.</content> </subsection> </section> <section> <num value="1079">SEC. 1079. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s303">49 USC 303 note</ref>.</p></sidenote><heading>TREATMENT OF MILITARY FLIGHT OPERATIONS.</heading> <content>No military flight operation (including a military training flight), or designation of airspace for such an operation, may be treated as a transportation program or project for purposes of section 303(c) of title 49, United States Code.</content> </section> <section> <num value="1080">SEC. 1080. </num><heading>NATURALIZATION OF CERTAIN FOREIGN NATIONALS WHO SERVE HONORABLY IN THE ARMED FORCES DURING A PERIOD OF CONFLICT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 329(a)(1) of the Immigration and Nationality Act (8 U.S.C. 1440(a)(1)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>, reenlistment, extension of enlistment,</quotedText>” after “at the time of enlistment”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting “<quotedText>or on board a public vessel owned or operated by the United States for noncommercial service,</quotedText>” after “United States, the Canal Zone, American Samoa, or Swains Island,”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1440">8 USC 1440 note</ref>.</p></sidenote><heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by subsection (a) shall apply with respect to enlistments, reenlistments, extensions of enlistment, and inductions of persons occurring on or after the date of the enactment of this Act.</content> </subsection> </section> <section> <num value="1081">SEC. 1081. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s111">10 USC 111 note</ref>.</p></sidenote><heading>APPLICABILITY OF CERTAIN PAY AUTHORITIES TO MEMBERS OF SPECIFIED INDEPENDENT STUDY ORGANIZATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Applicability of Certain Pay Authorities</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>An individual who is a member of a commission or panel specified in subsection (b) and is an annuitant otherwise covered by section 8344 or 8468 of title 5, United States Code, by reason of membership on the commission or panel is not subject to the provisions of that section with respect to such membership.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>An individual who is a member of a commission or panel specified in subsection (b) and is a member or former member of a uniformed service is not subject to the provisions of subsections (b) and (c) of section 5532 of such title with respect to membership on the commission or panel.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Specified Entities</inline>.—</heading><chapeau>Subsection (a) applies—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote><content>effective as of September 23, 1996, to members of the National Defense Panel established by section 924 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2626); and<page identifier="/us/stat/111/1917">111 STAT. 1917</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>effective as of October 9, 1996, to members of the<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> Commission on Servicemembers and Veterans Transition Assistance established by section 701 of the Veterans’ Benefits Improvements Act of 1996 (Public Law 104–275; 110 Stat. 3346; 38 U.S.C. 545 note).</content></paragraph> </subsection> </section> <section> <num value="1082">SEC. 1082. </num><heading>DISPLAY OF POW/MIA FLAG.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t36/s189a">36 USC 189a</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Required Display</inline>.—</heading><content>The POW/MIA flag shall be displayed at the locations specified in subsection (c) on POW/MIA flag display days. Such display shall serve (1) as the symbol of the Nation’s concern and commitment to achieving the fullest possible accounting of Americans who, having been prisoners of war or missing in action, still remain unaccounted for, and (2) as the symbol of the Nation’s commitment to achieving the fullest possible accounting for Americans who in the future may become prisoners of war, missing in action, or otherwise unaccounted for as a result of hostile action.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Days for Flag Display</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>For purposes of this section, POW/MIA flag display days are the following:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>Armed Forces Day, the third Saturday in May.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>Memorial Day, the last Monday in May.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><content>Flag Day, June 14.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="D">(D) </num><content>Independence Day, July 4.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="E">(E) </num><content>National POW/MIA Recognition Day.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="F">(F) </num><content>Veterans Day, November 11.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>In addition to the days specified in paragraph (1), POW/ MIA flag display days include—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>in the case of display at medical centers of the Department of Veterans Affairs (required by subsection (c)(7)), any day on which the flag of the United States is displayed; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>in the case of display at United States Postal Service post offices (required by subsection (c)(8)), the last business day before a day specified in paragraph (1) that in any year is not itself a business day.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Locations for Flag Display</inline>.—</heading><chapeau>The locations for the display of the POW/MIA flag under subsection (a) are the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The Capitol.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The White House.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The Korean War Veterans Memorial and the Vietnam Veterans Memorial.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Each national cemetery.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><chapeau>The buildings containing the official office of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the Secretary of State;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the Secretary of Defense;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>the Secretary of Veterans Affairs; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>the Director of the Selective Service System.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>Each major military installation, as designated by the Secretary of Defense.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>Each medical center of the Department of Veterans Affairs.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>Each United States Postal Service post office.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Coordination With Other Display Requirement</inline>.—</heading><content>Display of the POW/MIA flag at the Capitol pursuant to paragraph (1) of subsection (c) is in addition to the display of that flag in the Rotunda of the Capitol pursuant to Senate Concurrent Resolution 5 of the 101st Congress, agreed to on February 22, 1989 (103 Stat. 2533).<page identifier="/us/stat/111/1918">111 STAT. 1918</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Display To Be in a Manner Visible to the Public</inline>.—</heading><content>Display of the POW/MIA flag pursuant to this section shall be in a manner designed to ensure visibility to the public.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Limitation</inline>.—</heading><content>This section may not be construed or applied so as to require any employee to report to work solely for the purpose of providing for the display of the POW/MIA flag.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num><heading><inline class="smallCaps">POW/MIA Flag Defined</inline>.—</heading><content>As used in this section, the term “POW/MIA flag” means the National League of Families POW/MIA flag recognized officially and designated by section 2 of Public Law 101–355 (36 U.S.C. 189).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h) </num><heading><inline class="smallCaps">Regulations for Implementation</inline>.—</heading><content>Not later than 180 days after the date of the enactment of this Act, the head of each department, agency, or other establishment responsible for a location specified in subsection (c) (other than the Capitol) shall prescribe such regulations as necessary to carry out this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="i">(i) </num><heading><inline class="smallCaps">Procurement and Distribution of Flags</inline>.—</heading><content>Not later than 30 days after the date of the enactment of this Act, the Administrator of General Services shall procure POW/MIA flags and distribute them as necessary to carry out this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="j">(j) </num><heading><inline class="smallCaps">Repeal of Superseded Law</inline>.—</heading><content>Section 1084 of Public Law 102–190 (36 U.S.C. 189 note) is repealed.</content> </subsection> </section> <section> <num value="1083">SEC. 1083. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s113">10 USC 113 note</ref>.</p></sidenote><heading>PROGRAM TO COMMEMORATE BOTH ANNIVERSARY OF THE KOREAN CONFLICT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Commemorative Program</inline>.—</heading><content>The Secretary of Defense may conduct a program to commemorate the 50th anniversary of the Korean conflict. In conducting the commemorative program, the Secretary may coordinate, support, and facilitate other programs and activities of the Federal Government, State and local governments, and other persons in commemoration of the Korean conflict.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Commemorative Activities</inline>.—</heading><chapeau>The commemorative program may include activities and ceremonies—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>to provide the people of the United States with a clear understanding and appreciation of the lessons and history of the Korean conflict;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>to thank and honor veterans of the Korean conflict and their families;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>to pay tribute to the sacrifices and contributions made on the home front by the people of the United States during the Korean conflict;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>to highlight advances in technology, science, and medicine related to military research conducted during the Korean conflict;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>to recognize the contributions and sacrifices made by the allies of the United States in the Korean conflict; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>to highlight the role of the Armed Forces of the United States, then and now, in maintaining world peace through strength.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Names and Symbols</inline>.—</heading><content>The Secretary of Defense shall have the sole and exclusive right to use the names “The Department of Defense Korean Conflict Commemoration”, and such seal, emblems, and badges incorporating such name as the Secretary may lawfully adopt. Nothing in this section may be construed to supersede rights that are established or vested before the date of the enactment of this Act.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Commemorative Account</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>There is established in the Treasury an account to be known as the “Department of Defense <page identifier="/us/stat/111/1919">111 STAT. 1919</page>Korean Conflict Commemoration Account”, which shall be administered by the Secretary of Defense. There shall be deposited into the account all proceeds derived from the Secretary’s use of the exclusive rights described in subsection (c). The Secretary may use funds in the account only for the purpose of conducting the commemorative program.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Not later than 60 days after completion of all activities<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> and ceremonies conducted as part of the commemorative program, the Secretary shall submit to Congress a report containing an accounting of all of the funds deposited into and expended from the account or otherwise expended under this section, and of any funds remaining in the account. Unobligated funds remaining in the account on that date shall be held in the account until transferred by law.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Acceptance of Voluntary Services</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Notwithstanding section 1342 of title 31, United States Code, the Secretary of Defense may accept from any person voluntary services to be provided in furtherance of the commemorative program.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>A person providing voluntary services under this subsection shall be considered to be a Federal employee for purposes of chapter 81 of title 5, United States Code, relating to compensation for work-related injuries. The person shall also be considered a special governmental employee for purposes of standards of conduct and sections 202, 203, 205, 207, 208, and 209 of title 18, United States Code. A person who is not otherwise employed by the Federal Government shall not be considered to be a Federal employee for any other purpose by reason of the provision of voluntary services under this subsection.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><content>The Secretary may provide for reimbursement of incidental expenses incurred by a person providing voluntary services under this subsection. The Secretary shall determine which expenses are eligible for reimbursement under this paragraph.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Limitation on Expenditures</inline>.—</heading><content>Total expenditures to carry out the commemorative program may not exceed $100,000.</content> </subsection> </section> <section> <num value="1084">SEC. 1084. </num><heading>COMMENDATION OF MEMBERS OF THE ARMED FORCES AND GOVERNMENT CIVILIAN PERSONNEL WHO SERVED DURING THE COLD WAR; CERTIFICATE OF RECOGNITION.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1121">10 USC note prec. 1121</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>The Congress finds the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>During the period of the Cold War, from the end of World War II until the collapse of the Soviet Union in 1991, the United States and the Soviet Union engaged in a global military rivalry.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>This rivalry, potentially the most dangerous military confrontation in the history of mankind, has come to a close without a direct superpower military conflict.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Military and civilian personnel of the Department of Defense, personnel in the intelligence community, members of the foreign service, and other officers and employees of the United States faithfully performed their duties during the Cold War.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Many such personnel performed their duties while isolated from family and friends and served overseas under frequently arduous conditions in order to protect the United States and achieve a lasting peace.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>The discipline and dedication of those personnel were fundamental to the prevention of a superpower military conflict.<page identifier="/us/stat/111/1920">111 STAT. 1920</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Congressional Commendation</inline>.—</heading><content>The Congress hereby commends the members of the Armed Forces and civilian personnel of the Government who contributed to the historic victory in the Cold War and expresses its gratitude and appreciation for their service and sacrifices.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Certificates of Recognition</inline>.—</heading><content>The Secretary of Defense shall prepare a certificate recognizing the Cold War service of qualifying members of the Armed Forces and civilian personnel of the Department of Defense and other Government agencies contributing to national security, as determined by the Secretary, and shall provide the certificate to such members and civilian personnel upon request.</content> </subsection> </section> <section> <num value="1085">SEC. 1085. </num><heading>SENSE OF CONGRESS ON GRANTING OF STATUTORY FEDERAL CHARTERS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>Congress finds that the practice of providing by statute Federal charters to certain nonprofit organizations—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>may be perceived as implying a Government imprimatur of approval of those organizations; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>may mistakenly lead to public perception that the United States ensures the integrity and worthiness of those organizations.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Sense of Congress</inline>.—</heading><chapeau>It is the sense of Congress—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>that because of the perceived implicit Government imprimatur of approval conveyed by enactment of a Federal charter for an organization, such a charter should be granted only in the rarest and most extraordinary cases; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>that no statutory Federal charter should be enacted after the enactment of this Act unless the charter is approved by Congress upon favorable report by the committees of jurisdiction of the respective Houses.</content></paragraph> </subsection> </section> <section> <num value="1086">SEC. 1086. </num><heading>SENSE OF CONGRESS REGARDING MILITARY VOTING RIGHTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>Congress finds that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>members of the Armed Forces have a fundamental right to vote in Federal, State, and local elections; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>an extended absence of a member of the Armed Forces from the place of the member’s residency or domicile due to military or naval orders is not of itself grounds to consider the member’s residency or domicile as lost or changed.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Sense of Congress</inline>.—</heading><content>It is the sense of Congress that the Secretary of Defense, in consultation with the Attorney General, should review how best to protect the right of members of the Armed Forces to vote in Federal, State, and local elections while taking into account the right of States to prescribe requirements for voter registration. Such a review should include an assessment of challenges to military voting rights and consideration of possible legislative remedies to ensure that, for purposes of voting in Federal, State, and local elections, a member of the Armed Forces who is absent from a State in compliance with military or naval orders is not, solely by reason of that absence, considered to have lost or changed residency or domicile.</content> </subsection> </section> <section> <num value="1087">SEC. 1087. </num><heading>DESIGNATION OF BOB HOPE AS AN HONORARY VETERAN OF THE ARMED FORCES OF THE UNITED STATES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>Congress makes the following findings:<page identifier="/us/stat/111/1921">111 STAT. 1921</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>In its more than 200 years of existence as a nation, the United States has never conferred on any person the status of being an honorary veteran of the Armed Forces of the United States.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Status as an honorary veteran of the Armed Forces of the United States is and should remain an extraordinary honor not lightly conferred nor frequently granted.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The lifetime of accomplishments and service of Leslie Townes (Bob) Hope on behalf of members of the Armed Forces of the United States fully justifies the conferring of that status.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Bob Hope attempted to enlist in the Armed Forces to serve his country during World War II but was informed that the greatest service he could provide his country was as a civilian entertainer for the troops.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>During World War II, the Korean Conflict, the Vietnam War, the Persian Gulf War, and the Cold War, Bob Hope travelled to visit and entertain millions of members of the Armed Forces in numerous countries, on ships at sea, and in combat zones ashore.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>Bob Hope has been awarded the Congressional Gold Medal, the Presidential Medal of Freedom, the Distinguished Service Medal of each of the branches of the Armed Forces and more than 100 other citations and awards from national veterans service organizations and civic and humanitarian organizations.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>Bob Hope has given unselfishly of himself for over half a century to be with American service members on foreign shores, working tirelessly to bring a spirit of humor and cheer to millions of service members during their loneliest moments, and has, thereby, extended to them for the American people a touch of home away from home.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Designation of Bob Hope as Honorary Veteran</inline>.—</heading><chapeau>Congress—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>extends its gratitude, on behalf of the American people, to Leslie Townes (Bob) Hope, of the State of California, for his lifetime of accomplishments and service on behalf of members of the Armed Forces of the United States; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>hereby confers upon him the status of being an honorary veteran of the Armed Forces of the United States.</content></paragraph> </subsection> </section> <section> <num value="1088">SEC. 1088. </num><heading>FIVE-YEAR EXTENSION OF AVIATION INSURANCE PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Extension</inline>.—</heading><content>Section 44310 of title 49, United States Code, is amended by striking out “September 30, 1997” and inserting in lieu thereof “September 30, 2002”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>This section shall take effect as of<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s44310">49 USC 44310 note</ref>.</p></sidenote> September 30, 1997.</content> </subsection> </section> </subtitle> <num value="XI">TITLE XI—</num><heading>DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL</heading> <toc> <referenceItem role="section"><designator>Sec. 1101.</designator> <label>Use of prohibited constraints to manage Department of Defense personnel.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1102.</designator> <label>Veterans’ preference status for certain veterans who served on active duty during the Persian Gulf War.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1103.</designator> <label>Repeal of deadline for placement consideration of involuntarily separated military reserve technicians.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1104.</designator> <label>Rate of pay of Department of Defense overseas teachers upon transfer to General Schedule position.<page identifier="/us/stat/111/1922">111 STAT. 1922</page></label></referenceItem> <referenceItem role="section"><designator>Sec. 1105.</designator> <label>Garnishment and involuntary allotment.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1106.</designator> <label>Extension and revision of voluntary separation incentive pay authority. Sec. 1107. Use of approved fire-safe accommodations by Government employees on official business.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1108.</designator> <label>Navy higher education pilot program regarding administration of business relationships between Government and private sector.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1109.</designator> <label>Authority for Marine Corps University to employ civilian faculty members.</label></referenceItem> </toc> <section> <num value="1101">SEC. 1101. </num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote><heading>USE OF PROHIBITED CONSTRAINTS TO MANAGE DEPARTMENT OF DEFENSE PERSONNEL.</heading> <content>Section 129 of title 10, United States Code, is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f) </num><paragraph class="inline"><num value="1">(1) </num><content>Not later than February 1 of each year, the Secretary of each military department and the head of each Defense Agency shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report on the management of the civilian workforce under the jurisdiction of that official.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><chapeau>Each report of an official under paragraph (1) shall contain the following:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>The official’s certification (i) that the civilian workforce under the jurisdiction of the official is not subject to any constraint or limitation in terms of man years, end strength, full-time equivalent positions, or maximum number of employees, and (ii) that, during the 12 months preceding the date on which the report is due, such workforce has not been subject to any such constraint or limitation.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>A description of how the civilian workforce is managed.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">“(C) </num><content>A detailed description of the analytical tools used to determine civilian workforce requirements during the 12-month period referred to in subparagraph (A).”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></section> <section> <num value="1102">SEC. 1102. </num><heading>VETERANS’ PREFERENCE STATUS FOR CERTAIN VETERANS WHO SERVED ON ACTIVE DUTY DURING THE PERSIAN GULF WAR.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Definition of Veteran for Purposes of Preference Eligible Status</inline>.—</heading><chapeau>Section 2108 of title 5, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>in paragraph (1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking “<quotedText>or</quotedText>” at the end of subparagraph (A);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by inserting “<quotedText>or</quotedText>” at the end of subparagraph (B); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>by inserting after subparagraph (B) the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>served on active duty as defined by section 101(21) of title 38 in the armed forces during the period beginning on August 2, 1990, and ending on January 2, 1992;”; and</content></subparagraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in paragraph (3)(B), by inserting “<quotedText>or (C)</quotedText>” after “paragraph (1)(B)”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Additional Points</inline>.—</heading><content>Section 3309(2) of such title is amended by striking “<quotedText>2108(3)(A)</quotedText>” and inserting “<quotedText>2108(3)(AMB)</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Technical Amendments</inline>.—</heading><chapeau>Section 2108(1)(B) of such title is further amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking “<quotedText>the date of enactment of the Veterans’ Education and Employment Assistance Act of 1976,</quotedText>” and inserting “<quotedText>October 15, 1976,</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking “<quotedText>511(d) of title 10</quotedText>” and inserting “<quotedText>12103(d) of title 10</quotedText>”.<page identifier="/us/stat/111/1923">111 STAT. 1923</page></content></paragraph> </subsection> </section> <section> <num value="1103">SEC. 1103. </num><heading>REPEAL OF DEADLINE FOR PLACEMENT CONSIDERATION OF INVOLUNTARILY SEPARATED MILITARY RESERVE TECHNICIANS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Repeal of Deadline</inline>.—</heading><content>Section 3329(b) of title 5, United States Code, is amended by striking out “not later than 6 months after the date of the application”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Technical Correction</inline>.—</heading><content>Such section is further amended by striking out “a position described in subsection (c)” the second place it appears.</content> </subsection> </section> <section> <num value="1104">SEC. 1104. </num><heading>RATE OF PAY OF DEPARTMENT OF DEFENSE OVERSEAS TEACHERS UPON TRANSFER TO GENERAL SCHEDULE POSITION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Prevention of Excessive Increases</inline>.—</heading><content>Section 5334(d) of<sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote> title 5, United States Code, is amended by striking out “20 percent” and all that follows and inserting in lieu thereof “an amount determined under regulations which the Secretary of Defense shall prescribe for the determination of the yearly rate of pay of the position. The amount by which a rate of pay is increased under the regulations may not exceed the amount equal to 20 percent of that rate of pay.”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Effective Date and Savings Provision</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The amendment<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s5334">5 USC 5334 note</ref>.</p></sidenote> made by subsection (a) shall take effect 180 days after the date of the enactment of this Act.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>In the case of a person who is employed in a teaching position referred to in section 5334(d) of title 5, United States Code, on the day before the effective date under paragraph (1), the rate of pay of that person determined under that section (as in effect on that day) may not be reduced by reason of the amendment made by subsection (a) for so long as the person continues to serve in that position or another such position without a break in service of more than three days on or after that day.</content></paragraph> </subsection> </section> <section> <num value="1105">SEC. 1105. </num><heading>GARNISHMENT AND INVOLUNTARY ALLOTMENT.</heading> <chapeau>Section 5520a of title 5, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subsection (j), by striking out paragraph (2) and inserting in lieu thereof the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>Such regulations shall provide that an agency’s administrative costs in executing a garnishment action may be added to the garnishment, and that the agency may retain costs recovered as offsetting collections.”;</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>in subsection (k)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking out paragraph (3); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by redesignating paragraph (4) as paragraph (3); and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by striking out subsection (1).</content></paragraph> </section> <section> <num value="1106">SEC. 1106. </num><heading>EXTENSION AND REVISION OF VOLUNTARY SEPARATION INCENTIVE PAY AUTHORITY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Remittance to CSRS Fund</inline>.—</heading><content>Section 5597 of title 5, United States Code, is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="h">“(h) </num><paragraph class="inline"><num value="1">(1) </num><subparagraph class="inline"><num value="A">(A) </num><content>In addition to any other payment that it is required to make under subchapter III of chapter 83 or chapter 84, the Department of Defense shall remit to the Office of Personnel Management an amount equal to 15 percent of the final basic pay of each covered employee.<page identifier="/us/stat/111/1924">111 STAT. 1924</page></content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><content>If the employee is one with respect to whom a remittance would otherwise be required under section 4(a) of the Federal Workforce Restructuring Act of 1994 based on the separation involved, the remittance under this subsection shall be instead of the remittance otherwise required under such section 4(a).</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>Amounts remitted under paragraph (1) shall be deposited in the Treasury of the United States to the credit of the Civil Service Retirement and Disability Fund.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><chapeau>For the purposes of this subsection—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>the term ‘covered employee’ means an employee who is subject to subchapter III of chapter 83 or chapter 84 and to whom a voluntary separation incentive has been paid under this section on the basis of a separation occurring on or after October 1, 1997; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>the term ‘final basic pay’ has the meaning given such term in section 4(a)(2) of the Federal Workforce Restructuring Act of 1994.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Extension of Authority</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Subsection (e) of section 5597 of title 5, United States Code, is amended by striking out “September 30, 1999” and inserting in lieu thereof “September 30, 2001”.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Section 4436(d)(2) of the Defense Conversion, Reinvestment, and Transition Assistance Act of 1992 (5 U.S.C. 8348 note) is amended by striking out “January 1, 2000” and inserting in lieu thereof “January 1, 2002”.</content></paragraph> </subsection> </section> <section> <num value="1107">SEC. 1107. </num><heading>USE OF APPROVED FIRE-SAFE ACCOMMODATIONS BY GOVERNMENT EMPLOYEES ON OFFICIAL BUSINESS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Percentage Use Requirement</inline>.—</heading><chapeau>Section 5707a of title 5, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by redesignating subsections (a) through (d) as subsections (b) through (e), respectively; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting after the section heading the following new subsection: <quotedContent> <num value="a">“(a) </num><paragraph class="inline"><num value="1">(1) </num><content>For the purpose of making payments under this chapter for lodging expenses incurred in a State, each agency shall ensure that not less than 90 percent of the commercial-lodging room nights for employees of that agency for a fiscal year are booked in approved places of public accommodation.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote><content>Each agency shall establish explicit procedures to satisfy the percentage requirement of paragraph (1).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>An agency shall be considered to be in compliance with the percentage requirement of paragraph (1) until September 30, 2002, and after that date if travel arrangements of the agency, whether made for civilian employees, members of the uniformed services, or foreign service personnel, are made through travel management processes designed to book commercial lodging in approved places of public accommodation, whenever available.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><content>Such section is further amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f) </num><chapeau>For purposes of this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>The term ‘agency’ does not include the government of the District of Columbia.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The term ‘approved places of public accommodation’ means hotels, motels, and other places of public accommodation that are listed by the Director of the Federal Emergency Management Agency as meeting the requirements of the fire <page identifier="/us/stat/111/1925">111 STAT. 1925</page>prevention and control guidelines described in section 29 of the Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 2225).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>The term ‘State’ means any State, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, the Trust Territory of the Pacific Islands, the Virgin Islands, Guam, American Samoa, or any other territory or possession of the United States.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><chapeau>Such section is further amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>in subsection (b), as redesignated by subsection (a)(1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking out “places of public accommodation that meet the requirements of the fire prevention and control guidelines described in section 29 of the Federal Fire Prevention and Control Act of 1974” and inserting in lieu thereof “approved places of public accommodation”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking out “as defined in section 4 of the Federal Fire Prevention and Control Act of 1974”;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in subsection (c), as redesignated by subsection (a)(1), by striking out “does not meet the requirements of the fire prevention and control guidelines described in section 29 of the Federal Fire Prevention and Control Act of 1974” and inserting in lieu thereof “is not an approved place of public accommodation”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><chapeau>in subsection (e), as redesignated by subsection (a)(1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking out “encourage” and inserting in lieu thereof “facilitate the ability of”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking out “places of public accommodation that meet the requirements of the fire prevention and control guidelines described in section 29 of the Federal Fire Prevention and Control Act of 1974” and inserting in lieu thereof “approved places of public accommodation”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Report by Federal Emergency Management Agency</inline>.—</heading><content>Not later than six months after the date of the enactment of this Act, the Director of the Federal Emergency Management Agency shall submit to Congress a report describing the procedures to be used to ensure that all approved places of public accommodation (within the meaning of section 5707a(f)(2) of title 5, United States Code, as added by subsection (b)) appear on the national master list maintained by the Director under section 28(b) of the Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 2224(b)) of all of the places of public accommodation affecting commerce located in each State that meet the requirements of the fire prevention and control guidelines described in section 29 of such Act (15 U.S.C. 2225).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Report on Implementation</inline>.—</heading><content>Not later than one year after the date of the enactment of this Act, the Administrator of General Services shall submit to Congress a report describing the measures that have been taken and will be taken by Federal agencies to comply with the requirement that not less than 90 percent of the commercial-lodging room nights for employees of each Federal agency for a fiscal year are booked in approved places of public accommodation, as specified in section 5707a(a) of title 5, United States Code, as added by subsection (a). Measures to satisfy such <page identifier="/us/stat/111/1926">111 STAT. 1926</page>requirement may include the use of contract travel agents, automated booking systems, and data developed from travel payment systems. The Administrator shall prepare the report in consultation with the heads of the Federal agencies subject to such requirement.</content> </subsection> </section> <section> <num value="1108">SEC. 1108. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s5013">10 USC 5013 note</ref>.</p></sidenote><heading>NAVY HIGHER EDUCATION PILOT PROGRAM REGARDING ADMINISTRATION OF BUSINESS RELATIONSHIPS BETWEEN GOVERNMENT AND PRIVATE SECTOR.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Pilot Project Authorized</inline>.—</heading><content>During fiscal years 1998 through 2002, the Secretary of the Navy may establish and conduct a pilot program of graduate-level higher education regarding the administration of business relationships between the Government and the private sector.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Purpose</inline>.—</heading><content>The purpose of the pilot program is to make available to employees of the Naval Undersea Warfare Center, employees of the Naval Sea Systems Command, and employees of the Acquisition Center for Excellence of the Navy (upon establishment of such Acquisition Center), a curriculum of graduate-level higher education leading to the award of a graduate degree designed to prepare participants effectively to meet the challenges of administering Government contracting and other business relationships between the United States and private sector businesses in the context of constantly changing or newly emerging industries, technologies, governmental organizations, policies, and procedures (including governmental organizations, policies, and procedures recommended in the National Performance Review).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Partnership With Institution of Higher Education</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of the Navy may enter into an agreement with an institution of higher education to assist the Naval Undersea Warfare Center with the development of the curriculum for the pilot program, to offer courses and provide instruction and materials to participants to the extent provided for in the agreement, to provide such other assistance in support of the program as may be provided for in the agreement, and to award a graduate degree under the program.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>To be eligible to enter into an agreement under paragraph (1), an institution of higher education must have an established program of graduate-level education that is relevant to the purpose of the pilot program.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Curriculum</inline>.—</heading><chapeau>The curriculum offered under the pilot program shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>be designed specifically to achieve the purpose of the pilot program; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>include courses that are—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>typically offered under curricula leading to award of the degree of Master of Business Administration by institutions of higher education; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>necessary for meeting educational qualification requirements for certification as an acquisition program manager.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Distance Learning Option</inline>.—</heading><content>The Secretary of the Navy may include as part of the pilot program policies and procedures for offering distance learning instruction by means of telecommunications, correspondence, or other methods for off-site receipt of instruction.<page identifier="/us/stat/111/1927">111 STAT. 1927</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Report</inline>.—</heading><chapeau>Not later than 90 days after the termination of the pilot program, the Secretary of the Navy shall submit to Congress a report containing—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>an assessment by the Secretary of the value of the program for meeting the purpose of the program and the desirability of permanently establishing a similar program for other employees of the Department of Defense; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>such other information and recommendations regarding the program as the Secretary considers appropriate.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num><heading><inline class="smallCaps">Limitation on Funding Source</inline>.—</heading><content>Any funds required for the pilot program for a fiscal year shall be derived only from the appropriation “Operation and Maintenance, Navy” for that fiscal year.</content> </subsection> </section> <section> <num value="1109">SEC. 1109. </num><heading>AUTHORITY FOR MARINE CORPS UNIVERSITY TO EMPLOY CIVILIAN FACULTY MEMBERS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Expanded Authority</inline>.—</heading><content>Subsections (a) and (c) of section 7478 of title 10, United States Code, are amended by striking out “at the Marine Corps Command and Staff College” and inserting in lieu thereof “of the Marine Corps University”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendments</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The heading of such section is amended to read as follows: <quotedContent> <section> <num value="7478">“§ 7478. </num><heading>Naval War College and Marine Corps University: civilian faculty members”.</heading> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The item relating to such section in the table of sections at the beginning of chapter 643 of such title is amended to read as follows: <quotedContent> <toc> <referenceItem role="section"><designator>“7478.</designator> <label>Naval War College and Marine Corps University: civilian faculty members.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> </section> <num value="XII">TITLE XII—</num><heading>MATTERS RELATING TO OTHER NATIONS</heading> <toc> <referenceItem role="subtitle"><designator>Subtitle A—</designator><label>United States Armed Forces in Bosnia and Herzegovina</label></referenceItem> <referenceItem role="section"><designator>Sec. 1201.</designator> <label>Findings.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1202.</designator> <label>Sense of Congress.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1203.</designator> <label>Withdrawal of United States ground forces from Republic of Bosnia and Herzegovina.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1204.</designator> <label>Secretary of Defense reports on tasks carried out by United States forces.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1205.</designator> <label>Presidential report on situation in Republic of Bosnia and Herzegovina.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1206.</designator> <label>Definitions.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle B—</designator><label>Export Controls on High Performance Computers</label></referenceItem> <referenceItem role="section"><designator>Sec. 1211.</designator> <label>Export approvals for high performance computers.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1212.</designator> <label>Report on exports of high performance computers.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1213.</designator> <label>Post-shipment verification of export of high performance computers.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1214.</designator> <label>GAO study on certain computers; end user information assistance.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1215.</designator> <label>Congressional committees.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle C—</designator><label>Other Matters</label></referenceItem> <referenceItem role="section"><designator>Sec. 1221.</designator> <label>Defense burdensharing.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1222.</designator> <label>Temporary use of general purpose vehicles and nonlethal military equipment under acquisition and cross servicing agreements.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1223.</designator> <label>Sense of Congress and reports regarding financial costs of enlargement of the North Atlantic Treaty Organization.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1224.</designator> <label>Sense of Congress regarding enlargement of the North Atlantic Treaty Organization.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1225.</designator> <label>Sense of the Congress relating to level of United States military personnel in the East Asia and Pacific region.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1226.</designator> <label>Report on future military capabilities and strategy of the People’s Republic of China.<page identifier="/us/stat/111/1928">111 STAT. 1928</page></label></referenceItem> <referenceItem role="section"><designator>Sec. 1227.</designator> <label>Sense of Congress on need for Russian openness on the Yamantau Mountain project.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1228.</designator> <label>Assessment of the Cuban threat to United States national security.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1229.</designator> <label>Report on Helsinki Joint Statement.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1230.</designator> <label>Commendation of Mexico on free and fair elections.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1231.</designator> <label>Sense of Congress regarding Cambodia.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1232.</designator> <label>Congratulating Governor Christopher Patten of Hong Kong.</label></referenceItem> </toc> <subtitle> <num value="A">Subtitle A—</num><heading>United States Armed Forces in Bosnia and Herzegovina</heading> <section> <num value="1201">SEC. 1201. </num><heading>FINDINGS.</heading> <chapeau>The Congress finds the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>United States Armed Forces were deployed to the Republic of Bosnia and Herzegovina as part of the North Atlantic Treaty Organization (NATO) Implementation Force (IFOR) to implement the military aspects of the Dayton Peace Agreement.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The military aspects of the Dayton Peace Agreement have been successfully implemented to date with the military forces of the warring factions successfully separated and a cessation in the hostilities that resulted in the deaths of hundreds of thousands of Bosnians.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Implementation of the civil aspects of the Dayton Peace Agreement has lagged far behind the schedule for such implementation envisioned in the Agreement with the result that United States Armed Forces have undertaken a prolonged engagement in the Republic of Bosnia and Herzegovina.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>On December 13, 1995, the President stated in a letter to Congress, “NATO and U.S. military commanders believe, and I expect, that the military mission can be accomplished in about a year. Twelve months will allow IFOR time to complete the military tasks assigned in the Dayton agreement and to establish a secure environment, in which political and economic reconstruction efforts by the parties and international civilian agencies can take hold. Within one year, we expect that the military provisions of the Dayton agreement will have been carried out, implementation of the civilian aspects and economic reconstruction will have been firmly launched, free elections will have been held under international supervision and a stable military balance will have been established.”</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Notwithstanding a number of assurances relating to the accomplishment of the military mission in the Republic of Bosnia and Herzegovina by December 1996, the President, on November 15, 1996, announced his decision to extend the presence of United States forces in the Republic of Bosnia and Herzegovina to participate in the NATO Stabilization Force (SFOR) until June 1998.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>Despite initial projections by the Department of Defense that the costs of United States operations in the Republic of Bosnia and Herzegovina would total $1,500,000,000, the projected cost of United States operations in the Republic of Bosnia and Herzegovina through June 1998 is estimated to exceed $7,000,000,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>The fiscal year 1998 estimate of the Department of Defense for operations in the Republic of Bosnia and <page identifier="/us/stat/111/1929">111 STAT. 1929</page>Herzegovina assumes that the level of military forces participating in SFOR will be reduced soon after the start of the fiscal year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>The President and the Secretary of Defense have stated that United States forces are to be withdrawn from the Republic of Bosnia and Herzegovina by the end of June 1998.</content></paragraph> </section> <section> <num value="1202">SEC. 1202. </num><heading>SENSE OF CONGRESS.</heading> <chapeau>It is the sense of Congress that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>United States ground combat forces should not participate in a follow-on force in the Republic of Bosnia and Herzegovina after June 1998;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the European Security and Defense Identity, which, as facilitated by the Combined Joint Task Forces concept, enables the Western European Union, with the consent of the North Atlantic Alliance, to assume political control and strategic direction of NATO assets made available for the Alliance, may be an ideal instrument for a follow-on force for the Republic of Bosnia and Herzegovina;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>a NATO-led force without the participation of United States ground combat forces in the Republic of Bosnia and Herzegovina may be suitable for a follow-on force for the Republic of Bosnia and Herzegovina if the European Security and Defense Identity is not sufficiently developed or is otherwise considered inappropriate for such a mission;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>the United States may decide to provide appropriate support to a Western European Union-led or NATO-led follow-on force, including command and control, intelligence, logistics, and, if necessary, a ready reserve force in the region;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>the President should inform our European NATO allies of this expression of the sense of Congress and should urge them strongly to undertake preparations for a Western European Union-led or NATO-led force as a follow-on force to the NATO-led SFOR if needed to maintain peace and stability in the Republic of Bosnia and Herzegovina; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>the President should consult with the Congress with respect to any support to be provided to a Western European Union-led or NATO-led follow-on force in the Republic of Bosnia and Herzegovina after June 30, 1998.</content></paragraph> </section> <section> <num value="1203">SEC. 1203. </num><heading>WITHDRAWAL OF UNITED STATES GROUND FORCES FROM REPUBLIC OF BOSNIA AND HERZEGOVINA.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s114">10 USC 114 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Limitation</inline>.—</heading><chapeau>No funds appropriated or otherwise made available for the Department of Defense for fiscal year 1998 or any subsequent fiscal year may be used for the deployment of any United States ground combat forces in the Republic of Bosnia and Herzegovina after June 30, 1998, unless the President, not later than May 15, 1998, and after consultation with the bipartisan leadership of the two Houses of Congress, transmits to Congress a certification—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>that the continued presence of United States ground combat forces, after June 30, 1998, in the Republic of Bosnia and Herzegovina is required in order to meet the national security interests of the United States; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>that after June 30, 1998, it will remain United States policy that United States ground forces will not serve as, or be used as, civil police in the Republic of Bosnia and Herzegovina.<page identifier="/us/stat/111/1930">111 STAT. 1930</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8">President.</p></sidenote><heading><inline class="smallCaps">Report</inline>.—</heading><chapeau>The President shall submit with the certification under subsection (a) a report that includes the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The reasons why that presence is in the national security interest of the United States.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The number of United States military personnel to be deployed in and around the Republic of Bosnia and Herzegovina and other areas of the former Yugoslavia after that date.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The expected duration of any such deployment.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The mission and objectives of the United States Armed Forces to be deployed in and around the Republic of Bosnia and Herzegovina and other areas of the former Yugoslavia after June 30, 1998.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>The exit strategy of such forces.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>The incremental costs associated with any such deployment.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>The effect of such deployment on the morale, retention, and effectiveness of United States armed forces.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>A description of the forces from other nations involved in a follow-on mission, shown on a nation-by-nation basis.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><content>A description of the command and control arrangement established for United States forces involved in a follow-on mission.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10) </num><content>An assessment of the expected threats to United States forces involved in a follow-on mission.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="11">(11) </num><content>The plan for rotating units and personnel to and from the Republic of Bosnia and Herzegovina during a follow-on mission, including the level of participation by reserve component units and personnel.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="12">(12) </num><content>The mission statement and operational goals of the United States forces involved in a follow-on mission.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Request for Supplemental Appropriations</inline>.—</heading><content>The President shall transmit to Congress with a certification under subsection (a) a supplemental appropriations request for the Department of Defense for such amounts as are necessary for the costs of any continued deployment beyond June 30, 1998.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Construction With President’s Constitutional Authority</inline>.—</heading><content>Nothing in this section shall be deemed to restrict the authority of the President under the Constitution to protect the lives of United States citizens.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Construction With Appropriations Provision</inline>.—</heading><content>The provisions of this section are enacted, and shall be applied, as supplemental to (and not in lieu of) the provisions of section 8132 of the Department of Defense Appropriations Act, 1998 (Public Law 105–56).</content> </subsection> </section> <section> <num value="1204">SEC. 1204. </num><heading>SECRETARY OF DEFENSE REPORTS ON TASKS CARRIED OUT BY UNITED STATES FORCES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Requirement for Two Reports</inline>.—</heading><chapeau>The Secretary of Defense shall submit to the congressional defense committees—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>not later than December 15, 1997, a report identifying each activity being carried out, as of December 1, 1997, by covered United States forces in the Republic of Bosnia and Herzegovina; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>not later than April 15, 1998, a report identifying each activity being carried out, as of April 1, 1998, by covered United States forces in the Republic of Bosnia and Herzegovina.<page identifier="/us/stat/111/1931">111 STAT. 1931</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Covered United States Forces</inline>.—</heading><content>For purposes of this section, covered United States forces in the Republic of Bosnia and Herzegovina are United States ground forces in the Republic of Bosnia and Herzegovina that are assigned to the multinational peacekeeping force known as the Stabilization Force (SFOR) or any other multinational peacekeeping force that is the successor to the SFOR.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Matters To Be Included</inline>.—</heading><chapeau>The Secretary shall include in each report under subsection (a), for each activity identified under that subsection, the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The number of United States military personnel involved in the performance of that activity.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Whether forces assigned to the SFOR (or successor multinational peacekeeping force) from other nations also participated in that activity.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The justification for using military forces rather than civilian organizations to perform that activity.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>In the case of activities that (as determined by the Secretary) are considered to be supporting tasks, as that term is used in paragraph 3 of Article VI of Annex 1–A to the General Framework Agreement for Peace in Bosnia and Herzegovina, the justification for using military forces.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>The likelihood that each such activity will have to be carried out by United States military forces after June 30, 1998.</content></paragraph> </subsection> </section> <section> <num value="1205">SEC. 1205. </num><heading>PRESIDENTIAL REPORT ON SITUATION IN REPUBLIC OF BOSNIA AND HERZEGOVINA.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Requirement</inline>.—</heading><content>Not later than February 1, 1998, the President shall submit to Congress a report on the political and military conditions in the Republic of Bosnia and Herzegovina. The report shall be submitted in both classified and unclassified form.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Matters To Be Included</inline>.—</heading><chapeau>The report under subsection (a) shall include a discussion of the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>An assessment of the progress made in implementing the civil, economic, and political aspects of the Dayton Peace Agreement.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>An identification of the specific steps taken to transfer the United States portion of the peacekeeping mission in the Republic of Bosnia and Herzegovina to forces of the memberstates of the Western European Union or to a NATO-led force without the participation of United States ground combat forces in the Republic of Bosnia and Herzegovina.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>A detailed discussion of the proposed role and involvement of the United States in supporting peacekeeping activities in the Republic of Bosnia and Herzegovina following the withdrawal of United States ground combat forces from the Republic of Bosnia and Herzegovina.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>A detailed explanation and timetable for carrying out the commitment to withdraw all United States ground forces from the Republic of Bosnia and Herzegovina by June 30, 1998, including the planned date of commencement and completion of the withdrawal.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>The military and political considerations that will affect the decision to carry out such a transition.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>Any plan to maintain or expand other Bosnia-related operations (such as the operations designated as Operation <page identifier="/us/stat/111/1932">111 STAT. 1932</page>Deliberate Guard) if tensions in the Republic of Bosnia and Herzegovina remain sufficient to delay reductions of United States military forces participating in the Stabilization Force and the estimated cost associated with each such operation.</content></paragraph> </subsection> </section> <section> <num value="1206">SEC. 1206. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s114">10 USC 114 note</ref>.</p></sidenote><heading>DEFINITIONS.</heading> <chapeau>As used in this subtitle:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Dayton peace agreement</inline>.—</heading><content>The term “Dayton Peace Agreement” means the General Framework Agreement for Peace in Bosnia and Herzegovina, initialed by the parties in Dayton, Ohio, on November 21, 1995, and signed in Paris on December 14, 1995.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Implementation force</inline>.—</heading><content>The term “Implementation Force” means the NATO-led multinational military force in the Republic of Bosnia and Herzegovina (commonly referred to as “IFOR”), authorized under the Dayton Peace Agreement.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Stabilization force</inline>.—</heading><content>The term “Stabilization Force” means the NATO-led follow-on force to the Implementation Force in the Republic of Bosnia and Herzegovina and other countries in the region (commonly referred to as “SFOR”), authorized under United Nations Security Council Resolution 1088 (December 12, 1996).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><heading><inline class="smallCaps">Follow-on mission</inline>.—</heading><content>The term “follow-on mission” means a mission involving the deployment of ground elements of the United States Armed Forces in the Republic of Bosnia and Herzegovina after June 30, 1998 (other than as described in section 1203(b)).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><heading>NATO.—</heading><content>The term “NATO” means the North Atlantic Treaty Organization.</content></paragraph> </section> </subtitle> <subtitle> <num value="B">Subtitle B—</num><sidenote><p class="indent0 firstIndent0 fontsize8">50 USC app. 2404 note.</p></sidenote><heading>Export Controls on High Performance Computers</heading> <section> <num value="1211">SEC. 1211. </num><heading>EXPORT APPROVALS FOR HIGH PERFORMANCE COMPUTERS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><sidenote><p class="indent0 firstIndent0 fontsize8">President.</p></sidenote><heading><inline class="smallCaps">Prior Approval of Exports and Reexports</inline>.—</heading><content>The President shall require that no digital computer with a composite theoretical performance level of more than 2,000 millions of theoretical operations per second (MTOPS) or with such other composite theoretical performance level as may be established subsequently by the President under subsection (d), may be exported or reexported without a license to a country specified in subsection (b) if the Secretary of Commerce, the Secretary of Defense, the Secretary of Energy, the Secretary of State, or the Director of the Arms Control and Disarmament Agency objects, in writing, to such export or reexport. Any person proposing to export or reexport such a digital computer shall so notify the Secretary of Commerce, who, within 24 hours after receiving the notification, shall transmit the notification to the Secretary of Defense, the Secretary of Energy, the Secretary of State, and the Director of the Arms Control and Disarmament Agency.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Covered Countries</inline>.—</heading><content>For purposes of subsection (a), the countries specified in this subsection are the countries listed as “Computer Tier 3” eligible countries in section 740.7(d) of title 15 of the Code of Federal Regulations, as in effect on June 10, <page identifier="/us/stat/111/1933">111 STAT. 1933</page>1997, subject to modification by the President under subsection (e).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Time Limit</inline>.—</heading><content>Written objections under subsection (a) to an export or reexport shall be raised within 10 days after the notification is received under subsection (a). If such a written objection to the export or reexport of a computer is raised, the computer may be exported or reexported only pursuant to a license issued by the Secretary of Commerce under the Export Administration Regulations of the Department of Commerce, without regard to the licensing exceptions otherwise authorized under section 740.7 of title 15 of the Code of Federal Regulations, as in effect on June 10, 1997. If no objection is raised within the 10-day period, the export or reexport is authorized.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Adjustment of Composite Theoretical Performance</inline>.—</heading><chapeau>The President, in consultation with the Secretary of Commerce<sidenote><p class="indent0 firstIndent0 fontsize8">President.</p></sidenote> the Secretary of Defense, the Secretary of Energy, the Secretary of State, and the Director of the Arms Control and Disarmament Agency, may establish a new composite theoretical performance level for purposes of subsection (a). Such new level shall not take effect until 180 days after the President submits to the congressional committees designated in section 1215 a report setting forth the new composite theoretical performance level and the justification for such new level. Each report shall, at a minimum—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>address the extent to which high performance computers of a composite theoretical level between the level established in subsection (a) or such level as has been previously adjusted pursuant to this section and the new level, are available from other countries;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>address all potential uses of military significance to which high performance computers at the new level could be applied; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>assess the impact of such uses on the national security interests of the United States.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Adjustment of Covered Countries</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>The President, in consultation with the<sidenote><p class="indent0 firstIndent0 fontsize8">President.</p></sidenote> Secretary of Commerce, the Secretary of Defense, the Secretary of Energy, the Secretary of State, and the Director of the Arms Control and Disarmament Agency, may add a country to or remove a country from the list of covered countries in subsection (b), except that a country may be removed from the list only in accordance with paragraph (2).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Deletions from list of covered countries</inline>.—</heading><content>The removal of a country from the list of covered countries under subsection (b) shall not take effect until 120 days after the President submits to the congressional committees designated in section 1215 a report setting forth the justification for the deletion.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Excluded countries</inline>.—</heading><chapeau>A country may not be removed from the list of covered countries under subsection (b) if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the country is a “nuclear-weapon state” (as defined by Article IX of the Treaty on the Non-Proliferation of Nuclear Weapons) and the country is not a member of the North Atlantic Treaty Organization; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the country is not a signatory of the Treaty on the Non-Proliferation of Nuclear Weapons and the country is listed on Annex 2 to the Comprehensive Nuclear Test-Ban Treaty.<page identifier="/us/stat/111/1934">111 STAT. 1934</page></content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Classification</inline>.—</heading><content>Each report under subsections (d) and (e) shall be submitted in an unclassified form and may, if necessary, have a classified supplement.</content> </subsection> </section> <section> <num value="1212">SEC. 1212. </num><heading>REPORT ON EXPORTS OF HIGH PERFORMANCE COMPUTERS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Report</inline>.—</heading><chapeau>Not later than 60 days after the date of the enactment of this Act, the President shall provide to the congressional committees specified in section 1215 a report identifying all exports of digital computers with a composite theoretical performance of more than 2,000 millions of theoretical operations per second (MTOPS) to all countries since January 25, 1996. For each export, the report shall identify—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>whether an export license was applied for and whether one was granted;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the date of the transfer of the computer;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>the United States manufacturer and exporter of the computer;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>the MTOPS level of the computer; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>the recipient country and end user.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Additional Information on Exports to Certain Countries</inline>.—</heading><content>In the case of exports to countries specified in subsection (c), the report under subsection (a) shall identify the intended end use for the exported computer and the assessment by the executive branch of whether the end user is a military end user or an end user involved in activities relating to nuclear, chemical, or biological weapons or missile technology. Information provided under this subsection may be submitted m classified form if necessary.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Covered Countries</inline>.—</heading><chapeau>For purposes of subsection (b), the countries specified in this subsection are—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the countries listed as “Computer Tier 3” eligible countries in section 740.7(d) of title 15 of the Code of Federal Regulations, as in effect on June 10, 1997; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the countries listed in section 740.7(e) of title 15 of the Code of Federal Regulations, as in effect on June 10, 1997.</content></paragraph> </subsection> </section> <section> <num value="1213">SEC. 1213. </num><heading>POST-SHIPMENT VERIFICATION OF EXPORT OF HIGH PERFORMANCE COMPUTERS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Required Post-Shipment Verification</inline>.—</heading><content>The Secretary of Commerce shall conduct post-shipment verification of each digital computer with a composite theoretical performance of more than 2,000 millions of theoretical operations per second (MTOPS) that is exported from the United States, on or after the date of the enactment of this Act, to a country specified in subsection (b).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Covered Countries</inline>.—</heading><content>For purposes of subsection (a), the countries specified in this subsection are the countries listed as “Computer Tier 3” eligible countries in section 740.7 of title 15 of the Code of Federal Regulations, as in effect on June 10, 1997, subject to modification by the President under section 1211(e).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Annual Report</inline>.—</heading><chapeau>The Secretary of Commerce shall submit to the congressional committees specified in section 1215 an annual report on the results of post-shipment verifications conducted under this section during the preceding year. Each such report shall include a list of all such items exported from the United States to such countries during the previous year and, with respect to each such export, the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The destination country.<page identifier="/us/stat/111/1935">111 STAT. 1935</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The date of export.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The intended end use and intended end user.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The results of the post-shipment verification.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Explanation When verification Not Conducted</inline>.—</heading><content>If a post-shipment verification has not been conducted in accordance with subsection (a) with respect to any such export during the period covered by a report, the Secretary shall include in the report for that period a detailed explanation of the reasons why such a post-shipment verification was not conducted.</content> </subsection> </section> <section> <num value="1214">SEC. 1214. </num><heading>GAO STUDY ON CERTAIN COMPUTERS; END USER INFORMATION ASSISTANCE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>The Comptroller General of the United States shall submit to the congressional committees specified in section 1215 a study of the national security risks relating to the sale of computers with a composite theoretical performance of between 2,000 and 7,000 millions of theoretical operations per second (MTOPS) to end users in countries specified in subsection (c). The study shall also analyze any foreign availability of computers described in the preceding sentence and the impact of such sales on United States exporters.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">End User Information Assistance to Exporters</inline>.—</heading><content>The Secretary of Commerce shall establish a procedure by which exporters may seek information on questionable end users in countries specified in subsection (c) who are seeking to obtain computers described in subsection (a).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Covered Countries</inline>.—</heading><content>For purposes of subsections (a) and (b), the countries specified in this subsection are the countries listed as “Computer Tier 3” eligible countries in section 740.7(d) of title 15 of the Code of Federal Regulations, as in effect on June 10, 1997.</content> </subsection> </section> <section> <num value="1215">SEC. 1215. </num><heading>CONGRESSIONAL COMMITTEES.</heading> <chapeau>For purposes of sections 1211(d), 1212(a), 1213(c), and 1214(a) the congressional committees specified in those sections are the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The Committee on Banking, Housing, and Urban Affairs and the Committee on Armed Services of the Senate.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The Committee on International Relations and the Committee on National Security of the House of Representatives.</content></paragraph> </section> </subtitle> <subtitle> <num value="C">Subtitle C—</num><heading>Other Matters</heading> <section> <num value="1221">SEC. 1221. </num><heading>DEFENSE BURDENSHARING.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s1928">22 USC 1928 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Efforts To Increase Allied Burdensharing</inline>.—</heading><chapeau>The President shall seek to have each nation that has cooperative military relations with the United States (including security agreements, basing arrangements, or mutual participation in multinational military organizations or operations) take one or more of the following actions:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>For any nation in which United States military personnel are assigned to permanent duty ashore, increase its financial contributions to the payment of the nonpersonnel costs incurred by the United States Government for stationing United States military personnel in that nation, with a goal of achieving by September 30, 2000, 75 percent of such costs. An increase <page identifier="/us/stat/111/1936">111 STAT. 1936</page>in financial contributions by any nation under this paragraph may include the elimination of taxes, fees, or other charges levied on United States military personnel, equipment, or facilities stationed in that nation.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Increase its annual budgetary outlays for national defense as a percentage of its gross domestic product by 10 percent or at least to a level commensurate to that of the United States by September 30, 1998.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Increase its annual budgetary outlays for foreign assistance (to promote democratization, economic stabilization, transparency arrangements, defense economic conversion, respect for the rule of law, and internationally recognized human rights) by 10 percent or at least to a level commensurate to that of the United States by September 30, 1998.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Increase the amount of military assets (including personnel, equipment, logistics, support and other resources) that it contributes, or would be prepared to contribute, to multinational military activities worldwide.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Authorities To Encourage Actions by United States Allies</inline>.—</heading><chapeau>In seeking the actions described in subsection (a) with respect to any nation, or in response to a failure by any nation to undertake one or more of such actions, the President may take any of the following measures to the extent otherwise authorized by law:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Reduce the end strength level of members of the Armed Forces assigned to permanent duty ashore in that nation.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Impose on that nation fees or other charges similar to those that such nation imposes on United States forces stationed in that nation.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Reduce (through rescission, impoundment, or other appropriate procedures as authorized by law) the amount the United States contributes to the NATO Civil Budget, Military Budget, or Security Investment Program.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Suspend, modify, or terminate any bilateral security agreement the United States has with that nation, consistent with the terms of such agreement.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Reduce (through rescission, impoundment or other appropriate procedures as authorized by law) any United States bilateral assistance appropriated for that nation.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>Take any other action the President determines to be appropriate as authorized by law.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Report on Progress in Increasing Allied Burdensharing</inline>.—</heading><chapeau>Not later than March 1, 1998, the Secretary of Defense shall submit to Congress a report on—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>steps taken by other nations to complete the actions described in subsection (a);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>all measures taken by the President, including those authorized in subsection (b), to achieve the actions described in subsection (a);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>the difference between the amount allocated by other nations for each of the actions described in subsection (a) during the period beginning on March 1, 1996, and ending on February 28, 1997, and during the period beginning on March 1, 1997, and ending on February 28, 1998; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>the budgetary savings to the United States that are expected to accrue as a result of the steps described under paragraph (1).<page identifier="/us/stat/111/1937">111 STAT. 1937</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Report on National Security Bases for Forward Deployment and Burdensharing Relationships</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>In order to ensure the best allocation of budgetary resources, the President shall undertake a review of the status of elements of the United States Armed Forces that are permanently stationed outside the United States. The review shall include an assessment of the following:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>The alliance requirements that are to be found in agreements between the United States and other countries.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>The national security interests that support permanently stationing elements of the United States Armed Forces outside the United States.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><content>The stationing costs associated with the forward deployment of elements of the United States Armed Forces.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="D">(D) </num><content>The alternatives available to forward deployment (such as material prepositioning, enhanced airlift and sealift, or joint training operations) to meet such alliance requirements or national security interests, with such alternatives identified and described in detail.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="E">(E) </num><content>The costs and force structure configurations associated with such alternatives to forward deployment.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="F">(F) </num><content>The financial contributions that allies of the United States make to common defense efforts (to promote democratization, economic stabilization, transparency arrangements, defense economic conversion, respect for the rule of law, and internationally recognized human rights).</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="G">(G) </num><content>The contributions that allies of the United States make to meeting the stationing costs associated with the forward deployment of elements of the United States Armed Forces.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="H">(H) </num><content>The annual expenditures of the United States and its allies on national defense, and the relative percentages of each nation’s gross domestic product constituted by those expenditures.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The President shall submit to Congress a report on the<sidenote><p class="indent0 firstIndent0 fontsize8">President.</p></sidenote> review under paragraph (1). The report shall be submitted not later than March 1, 1998, in classified and unclassified form.</content></paragraph> </subsection> </section> <section> <num value="1222">SEC. 1222. </num><heading>TEMPORARY USE OF GENERAL PURPOSE VEHICLES AND NONLETHAL MILITARY EQUIPMENT UNDER ACQUISITION AND CROSS SERVICING AGREEMENTS.</heading> <content>Section 2350(1) of title 10, United States Code, is amended by striking out “other items” in the second sentence and all that follows through “United States Munitions List” and inserting in lieu thereof “other nonlethal items of military equipment which are not designated as significant military equipment on the United States Munitions List promulgated”.</content> </section> <section> <num value="1223">SEC. 1223. </num><heading>SENSE OF CONGRESS AND REPORTS REGARDING FINANCIAL COSTS OF ENLARGEMENT OF THE NORTH ATLANTIC TREATY ORGANIZATION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>Congress finds the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>In a report to Congress in February 1997 on the rationale, benefits, costs, and implications of North Atlantic Treaty Organization enlargement the Secretary of Defense estimated that the financial cost to the United States of such enlargement will be modest, totaling between $2,000,000,000 and $2,600,000,000 for the period from 1997 through 2009.<page identifier="/us/stat/111/1938">111 STAT. 1938</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>A study by the RAND Corporation published in 1996 calculated that the total financial cost to the United States of such enlargement will be between $5,000,000,000 and $6,000,000,000 over the same period.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>A March 1996 report by the Congressional Budget Office on the financial costs of enlarging the North Atlantic Treaty Organization alliance estimated the United States share of alliance enlargement costs to be between $4,800,000,000 and $18,900,000,000 through 2010, depending upon political developments in Europe.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>An August 1997 report by the General Accounting Office reviewing the financial cost estimates of the Secretary of Defense concluded that North Atlantic Treaty Organization enlargement could entail additional costs beyond those included in the Secretary’s estimate and questioned the validity of the Secretary’s estimate due to the lack of supporting cost documentation and the inclusion of cost elements not related to NATO enlargement.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>The North Atlantic Alliance is scheduled to complete its analysis of the military requirements for the integration of Poland, the Czech Republic, and Hungary into the Alliance in December 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>The North Atlantic Alliance is also scheduled to complete in December 1997 its financial cost estimate of the military requirements related to the integration of those nations.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Sense of Congress</inline>.—</heading><content>It is the sense of Congress that the analysis of the North Atlantic Alliance of the military requirements relating to NATO enlargement and of the financial costs to the Alliance of NATO enlargement will be one of the major factors in the consideration by the Senate of the ratification of instruments to approve the admission of new member nations to the Alliance and by Congress for the authorization and appropriation of the funding for the costs associated with such enlargement.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Report Assessing NATO Cost Analysis</inline>.—</heading><chapeau>Not later than March 31, 1998, the Secretary of Defense shall submit to Congress a report providing—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>an assessment of the analysis by the North Atlantic Alliance of the military requirements related to NATO enlargement and of the estimate of the financial costs to the NATO Alliance for the integration of Poland, the Czech Republic, and Hungary into the Alliance;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>a description of the analytical means used to determine such requirements and costs; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>a general assessment of the additional military requirements and costs that would result from a significantly increased threat.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Report on Department of Defense Costs</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of Defense shall submit to Congress, in conjunction with the submission of the President’s budget for fiscal year 1999, a report on Department of Defense costs for NATO enlargement. The report shall include a detailed estimate of such costs for fiscal year 1998 that identifies all appropriations, by budget activity, for the military departments and other elements of the Department of Defense to support NATO enlargement.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The Secretary of Defense shall include in the budget justification materials submitted to Congress by the Secretary in support of the budget of Department of Defense for fiscal year 1999 <page identifier="/us/stat/111/1939">111 STAT. 1939</page>complete and detailed descriptions and estimates of the amounts provided in that budget for the costs of NATO enlargement.</content></paragraph> </subsection> </section> <section> <num value="1224">SEC. 1224. </num><heading>SENSE OF CONGRESS REGARDING ENLARGEMENT OF THE NORTH ATLANTIC TREATY ORGANIZATION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>Congress makes the following findings:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The North Atlantic Treaty Organization (NATO) met on July 8 and 9, 1997, in Madrid, Spain, and issued invitations to the Czech Republic, Hungary, and Poland to begin accession talks to join NATO.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Congress has expressed its support for the process of NATO enlargement by approving the NATO Enlargement Facilitation Act of 1996 (title VI of the matter enacted in section 101(c) of division A of Public Law 104–208; 22 U.S.C. 1928 note).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The United States has supported the position that the process of enlarging NATO will continue after the first round of invitations in July 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Romania and Slovenia are to be commended for their progress toward political and economic reform and appear to be striving to meet the guidelines for prospective membership in NATO.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>In furthering the purpose and objective of NATO in promoting stability and well-being in the North Atlantic area, NATO should invite Romania and Slovenia to accession negotiations to become NATO members as expeditiously as possible upon the satisfaction of all relevant membership criteria and consistent with NATO security objectives.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Sense of Congress</inline>.—</heading><chapeau>It is the sense of Congress that North Atlantic Treaty Organization should be commended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>for having committed to review the process of enlarging the Organization in 1999; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>for singling out the positive developments toward democracy and rule of law in Romania and Slovenia.</content></paragraph> </subsection> </section> <section> <num value="1225">SEC. 1225. </num><heading>SENSE OF CONGRESS RELATING TO LEVEL OF UNITED STATES MILITARY PERSONNEL IN THE EAST ASIA AND PACIFIC REGION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>Congress finds the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The stability of the Asia-Pacific region is a matter of vital national interest affecting the well-being of all Americans.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The nations of the Pacific Rim collectively represent the United States largest trading partner and are expected to account for almost one-third of the world’s economic activity by the start of the next century.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The increased reliance by the United States on trade and Middle East oil sources has reinforced United States security interests in the Southeast Asia shipping lanes through the South China Sea and the key straits of Malacca, Sunda, Lombok, and Makassar.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The South China Sea is an important area for United States Navy ships passing from the Pacific to the Indian Ocean and the Persian Gulf.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Maintaining freedom of navigation in the South China Sea is an important interest of the United States.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>The threats of proliferation of weapons of mass destruction, the emerging nationalism amidst long-standing ethnic <page identifier="/us/stat/111/1940">111 STAT. 1940</page>and national rivalries, and the unresolved territorial disputes combine to create a political landscape of potential instability and conflict in this region that could jeopardize the interests of the United States and the safety of United States nationals.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>A critical component of the East Asia strategy of the United States is maintaining forward deployed forces in Asia to ensure broad regional stability, to help to deter aggression, to lessen the pressure for arms races, and to contribute to the political and economic advances of the region from which the United States benefits.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>The forward presence of the United States in Northeast Asia enables the United States to respond to regional contingencies, to protect sea lines of communication, to sustain influence, and to support operations as distant as operations in the Persian Gulf.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><content>The military forces of the United States serve to prevent the political or economic control of the Asia-Pacific region by a rival, hostile power or coalition of such powers, thus preventing any such group from obtaining control over the vast resources, enormous wealth, and advanced technology of the region.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10) </num><content>Allies of the United States in the region can base their defense planning on a reliable American security commitment, a reduction of which could stimulate an arms buildup in the region.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="11">(11) </num><content>The Joint Announcement of the United States-Japan Security Consultative Committee of December 1996, acknowledged that “the forward presence of U.S. forces continues to be an essential element for pursuing our common security objectives”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="12">(12) </num><content>The United States and Japan signed the United States-Japan Security Declaration in April 1996, in which the United States reaffirmed its commitment to maintain this level of 100,000 United States military personnel in the region.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="13">(13) </num><content>The United States military presence is recognized by the nations of the region as serving stability and enabling United States engagement.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="14">(14) </num><content>The nations of East Asia and the Pacific consider the commitment of the forces of the United States to be so vital to their future that they scrutinize actions of the United States for any sign of weakened commitment to the security of the region.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="15">(15) </num><content>The reduction of forward-based military forces could negatively affect the ability of the United States to contribute to the maintenance of peace and stability of the Asia and Pacific region.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="16">(16) </num><content>Recognizing that while the United States must consider the overall capabilities of its forces in its decisions to deploy troops, nevertheless any reduction in the number of forward-based troops may reduce the perception of American capability and commitment in the region that cannot be completely offset by modernization of the remaining forces.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="17">(17) </num><content>During time of crisis, deployment of forces to East Asia, even though such forces were previously removed from the area, might be deemed to be an act of provocation that <page identifier="/us/stat/111/1941">111 STAT. 1941</page>could be used as a pretext by a hostile power for armed aggression within the region, and the existence of that possibility might hinder such a deployment.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="18">(18) </num><content>Proposals to reduce the forward presence of the United States in the East Asia region or subordinate security interests to United States domestic budgetary concerns can erode the perception of the commitment of the United States to its alliances and interests in the region.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><content>Sense of Congress.—It is the sense of Congress that the United States should maintain at least approximately 100,000 United States military personnel in the East Asia and Pacific region until such time as there is a peaceful and permanent resolution to the major security and political conflicts in the region.</content> </subsection> </section> <section> <num value="1226">SEC. 1226. </num><heading>REPORT ON FUTURE MILITARY CAPABILITIES AND STRATEGY OF THE PEOPLE’S REPUBLIC OF CHINA.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Report</inline>.—</heading><content>The Secretary of Defense shall prepare a report, in both classified and unclassified form, on the pattern of military modernization of the People’s Republic of China. The report shall address the probable course of military-technological development in the People’s Liberation Army and the development of Chinese security strategy and military strategy, and of military organizations and operational concepts, through 2015.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Matters To Be Included</inline>.—</heading><chapeau>The report shall include analyses and forecasts of the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The goals of Chinese security strategy and military strategy.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Trends in Chinese strategy regarding the political goals of the People’s Republic of China in the Asia-Pacific region and its political and military presence in other regions of the world, including Central Asia, Southwest Asia, Europe, and Latin America.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Developments in Chinese military doctrine, focusing on (but not limited to) efforts to exploit an emerging Revolution in Military Affairs or to conduct preemptive strikes.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Efforts by the People’s Republic of China to enhance its capabilities in the area of nuclear weapons development.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Efforts by the People’s Republic of China to develop long-range air-to-air or air defense missiles that would provide the capability to target special support aircraft such as Airborne Warning and Control System (AWACS) aircraft, Joint Surveillance and Target Attack Radar System (JSTARS) aircraft, or other command and control, intelligence, airborne early warning, or electronic warfare aircraft.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>Efforts by the People’s Republic of China to develop a capability to conduct “information warfare” at the strategic, operational, and tactical levels of war.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>Development by the People’s Republic of China of capabilities in the area of electronic warfare.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>Efforts by the People’s Republic of China to develop a capability to establish control of space or to deny access and use of military and commercial space systems in times of crisis or war, including programs to place weapons in space or to develop earth-based weapons capable of attacking spacebased systems.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><content>Trends that would lead the People’s Republic of China toward the development of advanced intelligence, surveillance, <page identifier="/us/stat/111/1942">111 STAT. 1942</page>and reconnaissance capabilities, including gaining access to commercial or third-party systems with military significance.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10) </num><content>Efforts by the People’s Republic of China to develop highly accurate and stealthy ballistic and cruise missiles, including sea-launched cruise missiles, particularly in numbers sufficient to conduct attacks capable of overwhelming projected defense capabilities in the Asia-Pacific region.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="11">(11) </num><content>Development by the People’s Republic of China of command and control networks, particularly those capable of battle management of long-range precision strikes.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="12">(12) </num><content>Efforts by the People’s Republic of China in the area of telecommunications, including common channel signaling and synchronous digital hierarchy technologies.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="13">(13) </num><content>Development by People’s Republic of China of advanced aerospace technologies with military applications (including gas turbine “hot section” technologies).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="14">(14) </num><content>Programs of the People’s Republic of China involving unmanned aerial vehicles, particularly those with extended ranges or loitering times or potential strike capabilities.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="15">(15) </num><content>Exploitation by the People’s Republic of China for military purposes of the Global Positioning System or other similar systems (including commercial land surveillance satellites), with such analysis and forecasts focusing particularly on indications of an attempt to increase the accuracy of weapons or situational awareness of operating forces.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="16">(16) </num><content>Development by the People’s Republic of China of capabilities for denial of sea control, including such systems as advanced sea mines, improved submarine capabilities, or land-based sea-denial systems.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="17">(17) </num><content>Efforts by the People’s Republic of China to develop its anti-submarine warfare capabilities.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="18">(18) </num><content>Continued development by the People’s Republic of China of follow-on forces, particularly forces capable of rapid air or amphibious assault.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="19">(19) </num><content>Efforts by the People’s Republic of China to enhance its capabilities in such additional areas of strategic concern as the Secretary identifies.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Analysis of Implications of Sales of Products and Technologies to Entities in China</inline>.—</heading><chapeau>The report under subsection (a) shall include, with respect to each area for analyses and forecasts specified in subsection (b)—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>an assessment of the military effects of sales of United States and foreign products and technologies to entities in the People’s Republic of China; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the potential threat of developments related to such effects to United States strategic interests.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Submission of Report</inline>.—</heading><content>The report shall be submitted to Congress not later than March 15, 1998.</content> </subsection> </section> <section> <num value="1227">SEC. 1227. </num><heading>SENSE OF CONGRESS ON NEED FOR RUSSIAN OPENNESS ON THE YAMANTAU MOUNTAIN PROJECT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>Congress finds as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The United States and Russia have been working since the end of the Cold War to achieve a strategic relationship based on cooperation and openness between the two nations.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>This effort to establish a new strategic relationship between the two nations has resulted in the conclusion or <page identifier="/us/stat/111/1943">111 STAT. 1943</page>agreement in principle on a number of far-reaching agreements, including START I, II, and III, a revision in the Conventional Forces in Europe Treaty, and a series of other agreements (such as the Comprehensive Test Ban Treaty and the Chemical Weapons Convention), designed to further reduce bilateral threats and limit the proliferation of weapons of mass destruction.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>These far-reaching agreements were based on the understanding between the United States and Russia that there would be a good faith effort on both sides to comply with the letter and spirit of the agreements.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Reports indicate that Russia has been pursuing construction of a massive underground facility of unknown purpose at Yamantau Mountain and the city of Mezhgorye (formerly the settlements of Beloretsk–15 and Beloretsk–16) that is designed to survive a nuclear war and appears to exceed reasonable defense requirements.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>The Yamantau Mountain project does not appear to be consistent with the lowering of strategic threats, openness, and cooperation that is the basis of the post-Cold War strategic partnership between the United States and Russia.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>The United States has allowed senior Russian military and government officials to have access to key strategic facilities of the United States by providing tours of the North American Air Defense (NORAD) command at Cheyenne Mountain and the United States Strategic Command (STRATCOM) headquarters in Omaha, Nebraska, among other sites, and by providing extensive briefings on the operations of those facilities.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Sense of Congress</inline>.—</heading><chapeau>It is the sense of Congress that the Russian government—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>should provide to the United States Government a written explanation with sufficient detail (including drawings and diagrams) of the purpose and operational concept of the completed and planned facilities at Yamantau Mountain to support a high confidence judgment by the United States that the design of the Yamantau facility is consistent with official Russian government explanations; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>should allow a United States delegation, to include officials of the executive branch and Members of Congress, to have access to the Yamantau Mountain project and buildings and facilities surrounding the project.</content></paragraph> </subsection> </section> <section> <num value="1228">SEC. 1228. </num><heading>ASSESSMENT OF THE CUBAN THREAT TO UNITED STATES NATIONAL SECURITY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>Congress makes the following findings:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Cuba has maintained a hostile policy in its relations with the United States for over 35 years.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The United States, as a sovereign nation, must be able to respond to any Cuban provocation and defend the people and territory of the United States against any attack.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>In 1994, the Government of Cuba callously encouraged a massive exodus of Cubans, by boat and raft, toward the United States during which countless numbers of those Cubans lost their lives on the high seas.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The humanitarian response of the United States to rescue, shelter, and provide emergency care to those Cubans, <page identifier="/us/stat/111/1944">111 STAT. 1944</page>together with the actions taken to absorb some 30,000 of those Cubans into the United States, required significant efforts and the expenditure of hundreds of millions of dollars for the costs incurred by the United States and State and local governments in connection with those efforts.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>On February 24, 1996, Cuban MiG aircraft attacked and destroyed, in international airspace, two unarmed civilian aircraft flying from the United States, and the four persons in those unarmed civilian aircraft were killed.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>Since that attack, the Cuban government has issued no apology for the attack, nor has it indicated any intention to conform its conduct to international law that is applicable to civilian aircraft operating in international airspace.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Review and Assessment</inline>.—</heading><chapeau>The Secretary of Defense shall carry out a comprehensive review and assessment of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Cuban military capabilities; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>the threats to the national security of the United States that may be posed by Cuba, including—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>such unconventional threats as (i) encouragement of massive and dangerous migration, and (ii) attacks on citizens and residents of the United States while they are engaged in peaceful protest in international waters or airspace;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the potential for development and delivery of chemical or biological weapons; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>the potential for internal strife in Cuba that could involve citizens or residents of the United States or the Armed Forces of the United States.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Report</inline>.—</heading><chapeau>Not later than March 31, 1998, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report on the review and assessment. The report shall include the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The Secretary’s assessment of the capabilities and threats referred to in subsection (b), including each of the threats described in paragraph (2) of that subsection.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>A discussion of the results of the review and assessment, including an assessment of the contingency plans developed by the Secretary to counter any threat posed by Cuba to the United States.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Consultation on Review and Assessment</inline>.—</heading><content>In performing the review and assessment and in preparing the report, the Secretary of Defense shall consult with the Chairman of the Joint Chiefs of Staff, the commander of the United States Southern Command, and the heads of other appropriate departments and agencies of the United States.</content> </subsection> </section> <section> <num value="1229">SEC. 1229. </num><heading>REPORT ON HELSINKI JOINT STATEMENT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><sidenote><p class="indent0 firstIndent0 fontsize8">President.</p></sidenote><heading><inline class="smallCaps">Requirement</inline>.—</heading><chapeau>Not later than March 31, 1998, the President shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report on the Helsinki Joint Statement on future reductions in nuclear forces. The report shall address the United States approach (including verification implications) to implementing the Helsinki Joint Statement, in particular, as that Statement relates to the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Lower aggregate levels of strategic nuclear warheads.<page identifier="/us/stat/111/1945">111 STAT. 1945</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Measures relating to the transparency of strategic nuclear warhead inventories and the destruction of strategic nuclear warheads.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Deactivation of strategic nuclear delivery vehicles.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Measures relating to nuclear long-range sea-launched cruise missiles and tactical nuclear systems.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Issues related to transparency in nuclear materials.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Definition</inline>.—</heading><content>For purposes of this section, the term “Helsinki Joint Statement” means the agreements between the President of the United States and the President of the Russian Federation as contained in the Joint Statement on Parameters on Future Reductions in Nuclear Forces issued at Helsinki in March 1997.</content> </subsection> </section> <section> <num value="1230">SEC. 1230. </num><heading>COMMENDATION OF MEXICO ON FREE AND FAIR ELECTIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>Congress makes the following findings:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>On July 6, 1997, elections were conducted in Mexico in order to fill 500 seats in the Chamber of Deputies, 32 seats in the 128 seat Senate, the office of the Mayor of Mexico City, and local elections in a number of Mexican States.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>For the first time, the federal elections were organized by the Federal Electoral Institute, an autonomous and independent organization established under the Mexican Constitution.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>More than 52,000,000 Mexican citizens registered to vote.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Eight political parties registered to participate in those elections, including the Institutional Revolutionary Party (PRI), the National Action Party (PAN), and the Democratic Revolutionary Party (PRD).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Since 1993, Mexican citizens have had the exclusive right to participate as observers in activities related to the preparation and the conduct of elections.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>Since 1994, Mexican law has permitted international observers to be a part of the election process.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>With 84 percent of the ballots counted, PRI candidates received 38 percent of the vote for seats in the Chamber of Deputies, while PRD and PAN candidates received 52 percent of the combined vote.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>PRD candidate Cuauhtemoc Cardenas Solorzano has become the first elected Mayor of Mexico City, a post previously appointed by the President.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><content>PAN members will now serve as governors in seven of Mexico’s 31 States.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Sense of Congress</inline>.—</heading><chapeau>It is the sense of Congress that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the recent elections in Mexico were conducted in a free, fair, and impartial manner;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the will of the Mexican people, as expressed through the ballot box, has been respected by President Ernesto Zedillo and officials throughout his administration; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>President Zedillo, the Mexican Government, the Federal Electoral Institute of Mexico, the political parties and candidates, and most importantly the citizens of Mexico should all be congratulated for their support and participation in these very historic elections.</content></paragraph> </subsection> </section> <section> <num value="1231">SEC. 1231. </num><heading>SENSE OF CONGRESS REGARDING CAMBODIA.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>Congress makes the following findings:<page identifier="/us/stat/111/1946">111 STAT. 1946</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>During the 1970s and 1980s, Cambodia was wracked by political conflict, war, and violence, including genocide perpetrated by the Khmer Rouge from 1975 to 1979.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The 1991 Paris Agreements on a Comprehensive Political Settlement of the Cambodia Conflict set the stage for a process of political accommodation and national reconciliation among Cambodia’s warring parties.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The international community engaged in a massive effort involving more than $2,000,000,000 to ensure peace, democracy, and prosperity in Cambodia following the Paris Accords.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The Cambodian people clearly demonstrated their support for democracy when 90 percent of eligible Cambodian voters participated in United Nations-sponsored elections in 1993.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Since the 1993 elections, Cambodia has made economic progress, as shown by the recent decision of the Association of Southeast Asian Nations (ASEAN) to extend membership in the Association to Cambodia.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>Tensions within the ruling Cambodian coalition have erupted into violence.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>In March 1997, 19 Cambodians were killed and more than 100 were wounded in a grenade attack on political demonstrators supportive of the Funcinpec and the Khmer Nation Party.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>During June 1997, fighting erupted in Phnom Penh between forces loyal to First Prime Minister Prince Ranariddh and Second Prime Minister Hun Sen.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><content>On July 5, 1997, Second Prime Minister Hun Sen deposed the First Prime Minister in a violent coup d’etat.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10) </num><content>Forces loyal to Hun Sen have executed former Interior Minister Ho Sok and approximately 40 other political opponents loyal to Prince Ranariddh.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="11">(11) </num><content>Democracy and stability in Cambodia are threatened by the continued use of violence and other extralegal means to resolve political tensions.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="12">(12) </num><chapeau>In response to the July 1997 coup in Cambodia referred to in paragraph (9)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><sidenote><p class="indent0 firstIndent0 fontsize8">President.</p></sidenote><content>the President has suspended all direct assistance to the Cambodian Government; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the Association of Southeast Asian Nations (ASEAN) has decided to delay indefinitely admission of Cambodia to membership in the Association.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Sense of Congress</inline>.—</heading><chapeau>It is the sense of Congress that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the parties in Cambodia should immediately cease the use of violence;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the United States should take all necessary steps to ensure the safety of United States citizens in Cambodia;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>the United States should call an emergency meeting of the United Nations Security Council to consider all options to restore peace and democratic governance in Cambodia;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>the United States and the Association of Southeast Asian Nations should work together to take immediate steps to restore democracy and the rule of law in Cambodia;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>United States assistance to the Government of Cambodia should remain suspended until violence ends, the democratically elected Government is restored to power, and the <page identifier="/us/stat/111/1947">111 STAT. 1947</page>necessary steps have been taken to ensure that the elections scheduled for 1998 take place; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>the United States should take all necessary steps to encourage other donor nations to suspend assistance as part of a multilateral effort.</content></paragraph> </subsection> </section> <section> <num value="1232">SEC. 1232. </num><heading>CONGRATULATING GOVERNOR CHRISTOPHER PATTEN OF HONG KONG.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>Congress makes the following findings:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>His Excellency Christopher F. Patten, the former Governor of Hong Kong, was the twenty-eighth and last British Governor of the dependent territory of Hong Kong before that territory reverted back to the People’s Republic of China on July 1, 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Christopher Patten was a superb administrator and an inspiration to the people whom he governed.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>During Christopher Patten’s five years as Governor of Hong Kong, the economy flourished under his stewardship, growing by more than 30 percent in real terms.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Christopher Patten presided over a capable and honest civil service.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>During the tenure of Christopher Patten as Governor of Hong Kong, common crime declined and the political climate was positive and stable.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>The legacy of Christopher Patten to Hong Kong is the expansion of democracy in Hong Kong’s legislative council and a tireless devotion to the rights, freedoms, and welfare of the people of Hong Kong.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>Christopher Patten fulfilled the commitment of the British Government to “put in place a solidly based democratic administration” in Hong Kong before July 1, 1997.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Sense of Congress</inline>.—</heading><chapeau>It is the sense of the Congress that Christopher F. Patten, the last British Governor of the dependent territory of Hong Kong—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>served his country with great honor and distinction in that capacity; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>deserves special thanks and recognition from the United States for his tireless efforts to develop and nurture democracy in Hong Kong.</content></paragraph> </subsection> </section> </subtitle> <num value="XIII">TITLE XIII—</num><heading>ARMS CONTROL AND RELATED MATTERS</heading> <toc> <referenceItem role="section"><designator>Sec. 1301.</designator> <label>Presidential report concerning de targeting of Russian strategic missiles.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1302.</designator> <label>Limitation on retirement or dismantlement of strategic nuclear delivery systems.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1303.</designator> <label>Assistance for facilities subject to inspection under the Chemical Weapons Convention.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1304.</designator> <label>Transfers of authorizations for high-priority counterproliferation programs.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1305.</designator> <label>Advice to the President and Congress regarding the safety, security, and reliability of United States nuclear weapons stockpile.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1306.</designator> <label>Reconstitution of commission to assess the ballistic missile threat to the United States.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1307.</designator> <label>Sense of Congress regarding the relationship between United States obligations under the Chemical Weapons Convention and environmental laws.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1308.</designator> <label>Extension of counterproliferation authorities for support of United Nations Special Commission on Iraq.<page identifier="/us/stat/111/1948">111 STAT. 1948</page></label></referenceItem> <referenceItem role="section"><designator>Sec. 1309.</designator> <label>Annual report on moratorium on use by Armed Forces of antipersonnel landmines.</label></referenceItem> </toc> <section> <num value="1301">SEC. 1301. </num><heading>PRESIDENTIAL REPORT CONCERNING DETARGETING OF RUSSIAN STRATEGIC MISSILES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Required Report</inline>.—</heading><chapeau>Not later than January 1, 1998, the President shall submit to Congress a report concerning detargeting of Russian strategic missiles. The report shall address each of the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Whether a Russian ICBM that was formerly, but is no longer, targeted at a site in the United States would be automatically retargeted at a site in the United States in the event of the accidental launch of the missile.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Whether missile detargeting would prevent or significantly reduce the possibility of an unauthorized missile launch carried out by the Russian General Staff and prevent or significantly reduce the consequences to the United States of such a launch.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Whether missile detargeting would pose a significant obstacle to an unauthorized launch carried out by an operational level below the Russian General Staff if missile operators at such an operational level acquired missile launch codes or had the technical expertise to override missile launch codes.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The plausibility of an accidental launch of a Russian ICBM, compared to the possibility of a deliberate missile launch, authorized or unauthorized, resulting from Russian miscalculation, overreaction, or aggression.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>The national security benefits derived from detargeting United States and Russian ICBMs.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>The relative consequences to the United States of an unauthorized or accidental launch of a Russian ICBM that has been detargeted and one that has not been detargeted.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of subsection (a):</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The term “Russian ICBM” means an intercontinental ballistic missile of the Russian Federation.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The term “accidental launch” means a missile launch resulting from mechanical failure.</content></paragraph> </subsection> </section> <section> <num value="1302">SEC. 1302. </num><heading>LIMITATION ON RETIREMENT OR DISMANTLEMENT OF STRATEGIC NUCLEAR DELIVERY SYSTEMS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Funding Limitation</inline>.—</heading><chapeau>Funds available to the Department of Defense may not be obligated or expended during fiscal year 1998 for retiring or dismantling, or for preparing to retire or dismantle, any of the following strategic nuclear delivery systems below the specified levels:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>71 B–52H bomber aircraft.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>18 Trident ballistic missile submarines.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>50C Minuteman III intercontinental ballistic missiles.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>50 Peacekeeper intercontinental ballistic missiles.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Waiver Authority</inline>.—</heading><chapeau>If the START II Treaty enters into force during fiscal year 1998, the Secretary of Defense may waive the application of the limitation under subsection (a) to the extent that the Secretary determines necessary in order to implement the treaty.</chapeau> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Funding Limitation on Early Deactivation</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>If the limitation under subsection (a) ceases to apply by reason of a waiver under subsection (b), funds available to the Department of Defense may nevertheless not be obligated or expended during <page identifier="/us/stat/111/1949">111 STAT. 1949</page>fiscal year 1998 to implement any agreement or understanding to undertake substantial early deactivation of a strategic nuclear delivery system specified in subsection (a) until 30 days after the date on which the President submits to Congress a report concerning such actions.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>For purposes of this subsection and subsection (d), a substantial early deactivation is an action during fiscal year 1998 to deactivate a substantial number of strategic nuclear delivery systems specified in subsection (a) by—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>removing nuclear warheads from those systems; or</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>taking other steps to remove those systems from combat status.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><chapeau>A report under this subsection shall include the following:<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote></chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>The text of any understanding or agreement between the United States and the Russian Federation concerning substantial early deactivation of strategic nuclear delivery systems under the START II Treaty.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>The plan of the Department of Defense for implementing the agreement.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><content>An assessment of the Secretary of Defense of the adequacy of the provisions contained in the agreement for monitoring and verifying compliance of Russia with the terms of the agreement and, based upon that assessment, the determination of the President specifically as to whether the procedures for monitoring and verification of compliance by Russia with the terms of the agreement are adequate or inadequate.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="D">(D) </num><content>A determination by the President as to whether the<sidenote><p class="indent0 firstIndent0 fontsize8">President.</p></sidenote> deactivations to occur under the agreement will be carried out in a symmetrical, reciprocal, or equivalent manner and whether the agreement will require early deactivations of strategic forces by the United States to be carried out substantially more rapidly than deactivations of strategic forces by Russia.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="E">(E) </num><content>An assessment by the President of the effect of the<sidenote><p class="indent0 firstIndent0 fontsize8">President.</p></sidenote> proposed early deactivation on the stability of the strategic balance and relative strategic nuclear capabilities of the United States and the Russian Federation at various stages during deactivation and upon completion, including a determination by the President specifically as to whether the proposed early deactivations will adversely affect strategic stability.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Further Limitation on Strategic Force Reductions</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>Amounts available to the Department of Defense for fiscal year 1998 to implement an agreement that results in a substantial early deactivation during fiscal year 1998 of strategic forces may not be obligated for that purpose if in the report under subsection (c)(3) the President determines any of the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>That procedures for monitoring and verification of compliance by Russia with the terms of the agreement are inadequate.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>That the agreement will require early deactivations of strategic forces by the United States to be carried out substantially more rapidly than deactivations of strategic forces by Russia.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>That the proposed early deactivations will adversely affect strategic stability.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The limitation in paragraph (1), if effective by reason of a determination by the President described in paragraph (1)(B), <page identifier="/us/stat/111/1950">111 STAT. 1950</page>shall cease to apply 30 days after the date on which the President notifies Congress that the early deactivations under the agreement are in the national interest of the United States.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Contingency Plan for Sustainment of Systems</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Not later then February 15, 1998, the Secretary of Defense shall submit to Congress a plan for the sustainment beyond October 1, 1999, of United States strategic nuclear delivery systems and alternative Strategic Arms Reduction Treaty force structures in the event that a strategic arms reduction agreement subsequent to the Strategic Arms Reduction Treaty does not enter into force before 2004.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>The plan shall include a discussion of the following matters:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>The actions that are necessary to sustain the United States strategic nuclear delivery systems, distinguishing between the actions that are planned for and funded in the future-years defense program and the actions that are not planned for and funded in the future-years defense program.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>The funding necessary to implement the plan, indicating the extent to which the necessary funding is provided for in the future-years defense program and the extent to which the necessary funding is not provided for in the futureyears defense program.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">START Treaties Defined</inline>.—</heading><chapeau>In this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The term “Strategic Arms Reduction Treaty” means the Treaty Between the United States of America and the United Soviet Socialist Republics on the Reduction and Limitation of Strategic Offensive Arms (START), signed at Moscow on July 31, 1991, including related annexes on agreed statements and definitions, protocols, and memorandum of understanding.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>The term “START II Treaty” means the Treaty Between the United States of America and the Russian Federation on Further Reduction and Limitation of Strategic Offensive Arms, signed at Moscow on January 3, 1993, including the following protocols and memorandum of understanding, all such documents being integral parts of and collectively referred to as the “START II Treaty” (contained in Treaty Document 103–1):</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>The Protocol on Procedures Governing Elimination of Heavy ICBMs and on Procedures Governing Conversion of Silo Launchers of Heavy ICBMs Relating to the Treaty Between the United States of America and the Russian Federation on Further Reduction and Limitation of Strategic Offensive Arms (also known as the “Elimination and Conversion Protocol”).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>The Protocol on Exhibitions and Inspections of Heavy Bombers Relating to the Treaty Between the United States and the Russian Federation on Further Reduction and Limitation of Strategic Offensive Arms (also known as the “Exhibitions and Inspections Protocol”).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>The Memorandum of Understanding on Warhead Attribution and Heavy Bomber Data Relating to the Treaty Between the United States of America and the Russian Federation on Further Reduction and Limitation of Strategic Offensive Arms (also known as the “Memorandum on Attribution”).<page identifier="/us/stat/111/1951">111 STAT. 1951</page></content></subparagraph> </paragraph> </subsection> </section> <section> <num value="1303">SEC. 1303. </num><heading>ASSISTANCE FOR FACILITIES SUBJECT TO INSPECTION UNDER THE CHEMICAL WEAPONS CONVENTION.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t50/s1525">50 USC 1525</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Assistance Authorized</inline>.—</heading><content>Upon the request of the owner or operator of a facility that is subject to a routine inspection or a challenge inspection under the Chemical Weapons Convention, the Secretary of Defense may provide technical assistance to that owner or operator related to compliance of that facility with the Convention. Any such assistance shall be provided through the On-Site Inspection Agency of the Department of Defense.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Reimbursement Requirement</inline>.—</heading><content>The Secretary may provide assistance under subsection (a) only to the extent that the Secretary determines that the Department of Defense will be reimbursed for costs incurred in providing the assistance. The United States National Authority may provide such reimbursement from amounts available to it. Any such reimbursement shall be credited to amounts available for the On-Site Inspection Agency.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>In this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The terms “Chemical Weapons Convention” and “Convention” mean the Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on Their Destruction, ratified by the United States on April 25, 1997, and entered into force on April 29, 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The term “facility that is subject to a routine inspection” means a declared facility, as defined in paragraph 15 of part X of the Annex on Implementation and Verification of the Convention.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The term “challenge inspection” means an inspection conducted under Article IX of the Convention.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The term “United States National Authority” means the United States National Authority established or designated pursuant to Article VII, paragraph 4, of the Convention.</content></paragraph> </subsection> </section> <section> <num value="1304">SEC. 1304. </num><heading>TRANSFERS OF AUTHORIZATIONS FOR HIGH-PRIORITY COUNTERPROLIFERATION PROGRAMS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Authority</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Subject to paragraph (2), the Secretary of Defense may transfer amounts of authorizations made available to the Department of Defense in this division for fiscal year 1998 to any counterproliferation program, project, or activity described in subsection (b).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>A transfer of authorizations may be made under this section only upon determination by the Secretary of Defense that such action is necessary in the national interest.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Amounts of authorizations so transferred shall be merged with and be available for the same purposes as the authorization to which transferred.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Programs To Which Tranfers May Be Made</inline>.—</heading><content>The authority under subsection (a) applies to any counterproliferation program, project, or activity of the Department of Defense identified as an area for progress in the most recent annual report of the Counterproliferation Program Review Committee established by section 1605 of the National Defense Authorization Act for Fiscal Year 1994 (22 U.S.C. 2751 note).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Limitation on Total Amount</inline>.—</heading><content>The total amount of authorizations transferred under the authority of this section may not exceed $50,000,000.<page identifier="/us/stat/111/1952">111 STAT. 1952</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Other Limitations and Requirements</inline>.—</heading><content>The provisions of subsection (b), (c), and (d) of section 1001 shall apply to a transfer under this section in the same manner as they apply to a transfer under subsection (a) of that section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Construction With General Transfer Authority</inline>.—</heading><content>The authority provided by this section is in addition to the transfer authority provided in section 1001.</content> </subsection> </section> <section> <num value="1305">SEC. 1305. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s7274p">42 USC 7274p</ref>.</p></sidenote><heading>ADVICE TO THE PRESIDENT AND CONGRESS REGARDING THE SAFETY, SECURITY, AND RELIABILITY OF UNITED STATES NUCLEAR WEAPONS STOCKPILE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>Congress makes the following findings:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Nuclear weapons are the most destructive weapons on earth. The United States and its allies continue to rely on nuclear weapons to deter potential adversaries from using weapons of mass destruction. The safety and reliability of the nuclear weapons stockpile are essential to ensure its credibility as a deterrent.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>On September 24, 1996, President Clinton signed the Comprehensive Test Ban Treaty.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Effective as of September 30, 1996, the United States is prohibited by section 507 of the Energy and Water Development Appropriations Act, 1993 (Public Law 102–377; 42 U.S.C. 2121 note) from conducting underground nuclear tests “unless a foreign state conducts a nuclear test after this date, at which time the prohibition on United States nuclear testing is lifted”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Section 1436(b) of the National Defense Authorization Act, Fiscal Year 1989 (Public Law 100–456; 42 U.S.C. 2121 note) requires the Secretary of Energy to “establish and support a program to assure that the United States is in a position to maintain the reliability, safety, and continued deterrent effect of its stockpile of existing nuclear weapons designs in the event that a low-threshold or comprehensive test ban on nuclear explosive testing is negotiated and ratified.”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Section 3138(d) of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103–160; 42 U.S.C. 2121 note) required the President to submit an annual report to Congress which sets forth “any concerns with respect to the safety, security, effectiveness, or reliability of existing United States nuclear weapons raised by the Stockpile Stewardship Program of the Department of Energy”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>President Clinton declared in July 1993 that “to assure that our nuclear deterrent remains unquestioned under a test ban, we will explore other means of maintaining our confidence in the safety, reliability, and the performance of our weapons”. This decision was incorporated in a Presidential Directive.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>Section 3138 of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103–160; 42 U.S.C. 2121 note) also requires that the Secretary of Energy establish a “stewardship program to ensure the preservation of the core intellectual and technical competencies of the United States in nuclear weapons”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>The plan of the Department of Energy to maintain the safety and reliability of the United States nuclear weapons stockpile is known as the Stockpile Stewardship and Management Program. The ability of the United States to maintain and certify the safety, security, effectiveness, and reliability <page identifier="/us/stat/111/1953">111 STAT. 1953</page>of the nuclear weapons stockpile without testing will require utilization of new and sophisticated computational capabilities and diagnostic technologies, methods, and procedures. Current diagnostic technologies and laboratory testing techniques are insufficient to certify the safety and reliability of the United States nuclear weapons stockpile into the future. Whereas in the past laboratory and diagnostic tools were used in conjunction with nuclear testing, in the future they will provide, under the Department of Energy’s stockpile stewardship plan, the sole basis for assessing past test data and for making judgments on phenomena observed in connection with the aging of the stockpile.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><content>Section 3159 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 42 U.S.C. 7274o) requires that the directors of the nuclear weapons laboratories and the nuclear weapons production plants submit a report to the Assistant Secretary of Energy for Defense Programs if they identify a problem that has significant bearing on confidence in the safety or reliability of a nuclear weapon or nuclear weapon type, that the Assistant Secretary must transmit that report, along with any comments, to the congressional defense committees and to the Secretary of Energy and the Secretary of Defense, and that the Joint Nuclear Weapons Council advise Congress regarding its analysis of any such problems.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10) </num><content>On August 11, 1995, President Clinton directed “the establishment of a new annual reporting and certification requirement [to] ensure that our nuclear weapons remain safe and reliable under a comprehensive test ban”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="11">(11) </num><content>On the same day, the President noted that the Secretary of Defense and the Secretary of Energy have the responsibility, after being “advised by the Nuclear Weapons Council, the Directors of DOE’s nuclear weapons laboratories, and the Commander of United States Strategic Command”, to provide the President with the information regarding the certification referred to in paragraph (10).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="12">(12) </num><content>The Joint Nuclear Weapons Council established by section 179 of title 10, United States Code, is responsible for providing advice to the Secretary of Energy and the Secretary of Defense regarding nuclear weapons issues, including “considering safety, security, and control issues for existing weapons”. The Council plays a critical role in advising Congress in matters relating to nuclear weapons.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="13">(13) </num><content>It is essential that the President receive well-informed, objective, and honest opinions, including dissenting views, from his advisers and technical experts regarding the safety, security, effectiveness, and reliability of the nuclear weapons stockpile.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Policy</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>It is the policy of the United States—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>to maintain a safe, secure, effective, and reliable nuclear weapons stockpile; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>as long as other nations control or actively seek to acquire nuclear weapons, to retain a credible nuclear deterrent.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Nuclear weapons stockpile</inline>.—</heading><content>It is in the security interest of the United States to sustain the United States <page identifier="/us/stat/111/1954">111 STAT. 1954</page>nuclear weapons stockpile through a program of stockpile stewardship, carried out at the nuclear weapons laboratories and nuclear weapons production plants.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Sense Of congress</inline>.—</heading><chapeau>It is the sense of Congress that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the United States should retain a triad of strategic nuclear forces sufficient to deter any future hostile foreign leadership with access to strategic nuclear forces from acting against the vital interests of the United States;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the United States should continue to maintain nuclear forces of sufficient size and capability to implement an effective and robust deterrent strategy; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>the advice of the persons required to provide the President and Congress with assurances of the safety, security, effectiveness, and reliability of the nuclear weapons force should be scientifically based, without regard for politics, and of the highest quality and integrity.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Addition of President to Recipients of Reports by Heads of Laboratories and Plants</inline>.—</heading><chapeau>Section 3159(b) of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 42 U.S.C. 7274o) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out “committees and” and inserting in lieu thereof “committees,”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting before the period at the end the following: “, and to the President”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Ten-Day Time Limit for Transmittal of Report</inline>.—</heading><content>Section 3159(b) of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 42 U.S.C. 7274o) is amended by striking out “As soon as practicable” and inserting in lieu thereof “Not later than 10 days”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Advice and Opinions Regarding Nuclear Weapons Stockpile</inline>.—</heading><content>In addition to a director of a nuclear weapons laboratory or a nuclear weapons production plant (under section 3159 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 42 U.S.C. 7274o)), any member of the Joint Nuclear Weapons Council or the commander of the United States Strategic Command may also submit to the President, the Secretary of Defense, the Secretary of Energy, or the congressional defense committees advice or opinion regarding the safety, security, effectiveness, and reliability of the nuclear weapons stockpile.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Expression of Individual Views</inline>.—</heading><content>A representative of the President may not take any action against, or otherwise constrain, a director of a nuclear weapons laboratory or a nuclear weapons production plant, a member of the Joint Nuclear Weapons Council, or the Commander of United States Strategic Command for presenting individual views to the President, the National Security Council, or Congress regarding the safety, security, effectiveness, and reliability of the nuclear weapons stockpile.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>In this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>The term “representative of the President” means the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>Any official of the Department of Defense or the Department of Energy who is appointed by the President and confirmed by the Senate.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>Any member of the National Security Council.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>Any member of the Joint Chiefs of Staff.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>Any official of the Office of Management and Budget.<page identifier="/us/stat/111/1955">111 STAT. 1955</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>The term “nuclear weapons laboratory” means any of the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>Lawrence Livermore National Laboratory, California.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>Los Alamos National Laboratory, New Mexico.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>Sandia National Laboratories.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><chapeau>The term “nuclear weapons production plant” means any of the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>The Pantex Plant, Texas.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>The Savannah River Site, South Carolina.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>The Kansas City Plant, Missouri.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>The Y–12 Plant, Oak Ridge, Tennessee.</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="1306">SEC. 1306. </num><heading>RECONSTITUTION OF COMMISSION TO ASSESS THE BALLISTIC MISSILE THREAT TO THE UNITED STATES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Initial Organization Requirements</inline>.—</heading><chapeau>Section 1321(g) of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2712) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in paragraph (1), by striking out “not later than 45 days after the date of the enactment of this Act” and inserting in lieu thereof “not later than 30 days after the date of the enactment of the National Defense Authorization Act for Fiscal Year 1998”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>in paragraph (2)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking out “30 days” and inserting in lieu thereof “60 days”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking out “, but not earlier than October 15, 1996”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><content>Funding.—Section 1328 of such Act (110 Stat. 2714) is amended by inserting “<quotedText>and fiscal year 1998</quotedText>” after “for fiscal year 1997”.</content> </subsection> </section> <section> <num value="1307">SEC. 1307. </num><heading>SENSE OF CONGRESS REGARDING THE RELATIONSHIP BETWEEN UNITED STATES OBLIGATIONS UNDER THE CHEMICAL WEAPONS CONVENTION AND ENVIRONMENTAL LAWS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>Congress makes the following findings:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The Chemical Weapons Convention requires the destruction of the United States stockpile of lethal chemical agents and munitions by April 29, 2007 (not later than 10 years after the Convention’s entry into force).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>The President has substantial authority under existing law to ensure that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the technologies necessary to destroy the stockpile are developed;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the facilities necessary to destroy the stockpile are constructed; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>Federal, State, and local environmental laws and regulations do not impair the ability of the United States to comply with its obligations under the Convention.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><chapeau>The Comptroller General has concluded (in GAO Report NSIAD 97018 of February 1997) that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>obtaining the necessary Federal and State permits that are required under Federal environmental laws and regulations for building and operating the chemical agents and munitions destruction facilities is among the most unpredictable factors in the chemical demilitarization program; and<page identifier="/us/stat/111/1956">111 STAT. 1956</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>program cost and schedule are largely driven by the degree to which States and local communities are in agreement with proposed disposal methods and whether those methods meet environmental concerns.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Sense of Congress</inline>.—</heading><chapeau>It is the sense of Congress that the President—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>should use the authority of the President under existing law to ensure that the United States is able to construct and operate the facilities necessary to destroy the United States stockpile of lethal chemical agents and munitions within the time allowed by the Chemical Weapons Convention; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>while carrying out the obligations of the United States under the Convention, should encourage negotiations between appropriate Federal officials and officials of the State and local governments concerned to attempt to meet their concerns regarding compliance with Federal and State environmental laws and regulations and other concerns about the actions being taken to carry out those obligations.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Chemical Weapons Convention Defined</inline>.—</heading><content>For the purposes of this section, the terms “Chemical Weapons Convention” and “Convention” mean the Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on Their Destruction, ratified by the United States on April 25, 1997, and entered into force on April 29, 1997.</content> </subsection> </section> <section> <num value="1308">SEC. 1308. </num><heading>EXTENSION OF COUNTERPROLIFERATION AUTHORITIES FOR SUPPORT OF UNITED NATIONS SPECIAL COMMISSION ON IRAQ.</heading> <chapeau>Section 1505 of the Weapons of Mass Destruction Control Act of 1992 (title XV of Public Law 102–484; 22 U.S.C. 5859a) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subsection (d)(3), by striking out “or” after “fiscal year 1996,” and by inserting “<quotedText>, or $15,000,000 for fiscal year 1998</quotedText>” before the period at the end; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in subsection (f), by striking out “1997” and inserting in lieu thereof “1998”.</content></paragraph> </section> <section> <num value="1309">SEC. 1309. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s113">10 USC 113 note</ref>.</p></sidenote><heading>ANNUAL REPORT ON MORATORIUM ON USE BY ARMED FORCES OF ANTIPERSONNEL LANDMINES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>Congress makes the following findings:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The United States has stated its support for a ban on antipersonnel landmines that is global in scope and verifiable.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Korea.</p></sidenote><content>On May 16, 1996, the President announced that the United States, as a matter of policy, would eliminate its stockpile of non-self-destructing antipersonnel landmines, except those used for training purposes and in Korea, and that the United States would reserve the right to use self-destructing antipersonnel landmines in the event of conflict.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>On May 16, 1996, the President also announced that the United States would lead an effort to negotiate an international treaty permanently banning the use of all antipersonnel landmines.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The United States is currently participating at the United Nations Conference on Disarmament in negotiations aimed at achieving a global ban on the use of antipersonnel landmines.<page identifier="/us/stat/111/1957">111 STAT. 1957</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>On August 18, 1997, the administration agreed to<sidenote><p class="indent0 firstIndent0 fontsize8">Canada.</p></sidenote> participate in international negotiations sponsored by Canada (the so-called “Ottawa process”) designed to achieve a treaty that would outlaw the production, use, and sale of antipersonnel landmines.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>On September 17, 1997, the President announced that<sidenote><p class="indent0 firstIndent0 fontsize8">Norway.</p></sidenote> the United States would not sign the antipersonnel landmine treaty concluded in Oslo, Norway, by participants in the Ottawa process because the treaty would not provide a geographic exception to allow the United States to stockpile and use antipersonnel landmines in Korea or an exemption that would preserve the ability of the United States to use mixed antitank mine systems which could be used to deter an armored assault against United States forces.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><chapeau>The President also announced a change in United States<sidenote><p class="indent0 firstIndent0 fontsize8">Korea.</p></sidenote> policy whereby the United States—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>would no longer deploy antipersonnel landmines, including self-destructing antipersonnel landmines, by 2003, except in Korea;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>would seek to field alternatives by that date, or by 2006 in the case of Korea;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>would undertake a new initiative in the United Nations Conference on Disarmament to establish a global ban on the transfer of antipersonnel landmines; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>would increase its current humanitarian demining activities around the world.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>The President’s decision would allow the continued use by United States forces of self-destructing antipersonnel landmines that are used as part of a mixed antitank mine system.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><content>Under existing law (as provided in section 580 of Public Law 104–107; 110 Stat. 751), on February 12, 1999, the United States will implement a one-year moratorium on the use of antipersonnel landmines by United States forces except along internationally recognized national borders or in demilitarized zones within a perimeter marked area that is monitored by military personnel and protected by adequate means to ensure the exclusion of civilians.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Sense of Congress</inline>.—</heading><chapeau>It is the sense of Congress that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the United States should not implement a moratorium on the use of antipersonnel landmines by United States Armed Forces in a manner that would endanger United States personnel or undermine the military effectiveness of United States Armed Forces in executing their missions; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the United States should pursue the development of alternatives to self-destructing antipersonnel landmines.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Annual Report</inline>.—</heading><chapeau>Not later than December 31 each year, the Secretary of Defense shall submit to the congressional defense committees a report concerning antipersonnel landmines. Each such report shall include the Secretary’s description of the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The military utility of the continued deployment and use by the United States of antipersonnel landmines.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The effect of a moratorium on the production, stockpiling, and use of antipersonnel landmines on the ability of United States forces to deter and defend against attack on land by hostile forces, including on the Korean peninsula.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Progress in developing and fielding systems that are effective substitutes for antipersonnel landmines, including an <page identifier="/us/stat/111/1958">111 STAT. 1958</page>identification and description of the types of systems that are being developed and fielded, the costs associated with those systems, and the estimated timetable for developing and fielding those systems.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The effect of a moratorium on the use of antipersonnel landmines on the military effectiveness of current antitank mine systems.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>The number and type of pure antipersonnel landmines that remain in the United States inventory and that are subject to elimination under the President’s September 17, 1997, declaration on United States antipersonnel landmine policy.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>The number and type of mixed antitank mine systems that are in the United States inventory, the locations where they are deployed, and their effect on the deterrence and warfighting ability of United States Armed Forces.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>The effect of the elimination of pure antipersonnel landmines on the warfighting effectiveness of the United States Armed Forces.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>The costs already incurred and anticipated of eliminating antipersonnel landmines from the United States inventory in accordance with the policy enunciated by the President on September 17, 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><content>The benefits that would result to United States military and civilian personnel from an international treaty banning the production, use, transfer, and stockpiling of antipersonnel landmines.</content></paragraph> </subsection> </section> <num value="XIV">TITLE XIV—</num><heading>COOPERATIVE THREAT REDUCTION WITH STATES OF FORMER SOVIET UNION</heading> <toc> <referenceItem role="section"><designator>Sec. 1401.</designator> <label>Specification of Cooperative Threat Reduction programs and funds.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1402.</designator> <label>Funding allocations.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1403.</designator> <label>Prohibition on use of funds for specified purposes.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1404.</designator> <label>Limitation on use of funds for projects related to START II Treaty until submission of certification.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1405.</designator> <label>Limitation on use of funds for chemical weapons destruction facility.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1406.</designator> <label>Limitation on use of funds for destruction of chemical weapons.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1407.</designator> <label>Limitation on use of funds for storage facility for Russian fissile material.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1408.</designator> <label>Limitation on use of funds for weapons storage security.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1409.</designator> <label>Report on issues regarding payment of taxes, duties, and other assessments on assistance provided to Russia under Cooperative Threat Reduction programs.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1410.</designator> <label>Availability of funds.</label></referenceItem> </toc> <section> <num value="1401">SEC. 1401. </num><heading>SPECIFICATION OF COOPERATIVE THREAT REDUCTION PROGRAMS AND FUNDS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Specification of CTR Programs</inline>.—</heading><content>For purposes of section 301 and other provisions of this Act, Cooperative Threat Reduction programs are the programs specified in section 1501(b) of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2731; 50 U.S.C. 2362 note).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Fiscal Year 1998 Cooperative Threat Reduction Funds Defined</inline>.—</heading><content>As used in this title, the term “fiscal year 1998 Cooperative Threat Reduction funds” means the funds appropriated pursuant to the authorization of appropriations in section 301 for Cooperative Threat Reduction programs.<page identifier="/us/stat/111/1959">111 STAT. 1959</page></content> </subsection> </section> <section> <num value="1402">SEC. 1402. </num><heading>FUNDING ALLOCATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General.</inline>—</heading><chapeau>Of the fiscal year 1998 Cooperative Threat Reduction funds, not more than the following amounts may be obligated for the purposes specified:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>For strategic offensive arms elimination in Russia, $77,900,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>For strategic nuclear arms elimination in Ukraine, $76,700,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>For fissile material containers in Russia, $7,000,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>For planning and design of a chemical weapons destruction facility in Russia, $35,400,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>For dismantlement of biological and chemical weapons facilities in the former Soviet Union, $20,000,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>For planning, design, and construction of a storage facility for Russian fissile material, $57,700,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>For weapons storage security in Russia, $36,000,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>For development of a cooperative program with the Government of Russia to eliminate the production of weapons grade plutonium at Russian reactors, $41,000,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><content>For activities designated as Defense and Military-to-Military Contacts in Russia, Ukraine, and Kazakhstan, $8,000,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10) </num><content>For military-to-military programs of the United States that focus on countering the threat of proliferation of weapons of mass destruction and that include the security forces of the independent states of the former Soviet Union other than Russia, Ukraine, Belarus, and Kazakstan, $2,000,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="11">(11) </num><content>For activities designated as Other Assessments/ Administrative Support $20,500,000.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Limited Authority To Vary Individual Amounts</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>If the Secretary of Defense determines that it is necessary to do so in the national interest, the Secretary may, subject to paragraphs (2) and (3), obligate amounts for the purposes stated in any of the paragraphs of subsection (a) in excess of the amount specified for those purposes in that paragraph. However, the total amount obligated for the purposes stated in the paragraphs in subsection (a) may not by reason of the use of the authority provided in the preceding sentence exceed the sum of the amounts specified in those paragraphs.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>An obligation for the purposes stated in any of the paragraphs in subsection (a) in excess of the amount specified in that paragraph may be made using the authority provided in paragraph 1) only after—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the Secretary submits to Congress notification of the intent to do so together with a complete discussion of the justification for doing so; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>15 days have elapsed following the date of the notification.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The Secretary may not, under the authority provided in paragraph (1), obligate amounts appropriated for the purposes stated in any of paragraphs (3) through (11) of subsection (a) in excess of 115 percent of the amount stated in those paragraphs.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Limited Waiver of 115 Percent Cap on Obligation in Excess of Amounts Authorized for Fiscal Years 1996 and 1997</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The limitation in subsection (b)(1) of section 1202 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104–106; 110 Stat. 469), that provides that the authority <page identifier="/us/stat/111/1960">111 STAT. 1960</page>provided in that sentence to obligate amounts specified for Cooperative Threat Reduction purposes in excess of the amount specified for each such purpose in subsection (a) of that section may not exceed 115 percent of the amounts specified, shall not apply with respect to subsection (a)(1) of such section for purposes of strategic offensive weapons elimination in Russia or the Ukraine.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The limitation in subsection (b)(1) of section 1502 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2732), that provides that the authority provided in that sentence to obligate amounts specified for Cooperative Threat Reduction purposes in excess of the amount specified for each such purpose in subsection (a) of that section may not exceed 115 percent of the amounts specified, shall not apply with respect to subsections (a)(2) and (a)(3) of such section.</content></paragraph> </subsection> </section> <section> <num value="1403">SEC. 1403. </num><heading>PROHIBITION ON USE OF FUNDS FOR SPECIFIED PURPOSES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>No fiscal year 1998 Cooperative Threat Reduction funds, and no funds appropriated for Cooperative Threat Reduction programs for any prior fiscal year and remaining available for obligation, may be obligated or expended for any of the following purposes:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Conducting with Russia any peacekeeping exercise or other peacekeeping-related activity.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Provision of housing.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Provision of assistance to promote environmental restoration.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Provision of assistance to promote job retraining.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Limitation With Respect to Defense Conversion Assistance</inline>.—</heading><content>None of the funds appropriated pursuant to this Act may be obligated or expended for the provision of assistance to Russia or any other state of the former Soviet Union to promote defense conversion.</content> </subsection> </section> <section> <num value="1404">SEC. 1404. </num><heading>LIMITATION ON USE OF FUNDS FOR PROJECTS RELATED TO START II TREATY UNTIL SUBMISSION OF CERTIFICATION.</heading> <chapeau>No fiscal year 1998 Cooperative Threat Reduction funds may be obligated or expended for strategic offensive arms elimination projects in Russia related to the START II Treaty (as defined in section 1302(f)) until 30 days after the date on which the Secretary of Defense submits to Congress a certification in writing that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>implementation of the projects would benefit the national security interest of the United States; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Russia has agreed in an implementing agreement to share the cost for the projects.</content></paragraph> </section> <section> <num value="1405">SEC. 1405. </num><heading>LIMITATION ON USE OF FUNDS FOR CHEMICAL WEAPONS DESTRUCTION FACILITY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Limitation on Use of Funds Until Submission of Notifications to Congress</inline>.—</heading><chapeau>No fiscal year 1998 Cooperative Threat Reduction funds may be obligated or expended for planning and design of a chemical weapons destruction facility until 15 days after the date that is the later of the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>The date on which the Secretary of Defense submits to Congress notification of an agreement between the United States and Russia with respect to such chemical weapons destruction facility that includes—<page identifier="/us/stat/111/1961">111 STAT. 1961</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>an agreement providing for a limitation on the financial contribution by the United States for the facility;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>an agreement that the United States will not pay the costs for infrastructure determined by Russia to be necessary to support the facility; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>an agreement on the location of the facility.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>The date on which the Secretary of Defense submits to Congress notification that the Government of Russia has formally approved a plan—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>that allows for the destruction of chemical weapons in Russia; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>that commits Russia to pay a portion of the cost for the facility.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Prohibition on Use of Funds for Facility Construction</inline>.—</heading><content>No fiscal year 1998 Cooperative Threat Reduction funds authorized to be obligated in section 1402(a)(4) for planning and design of a chemical weapons destruction facility in Russia may be used for construction of such facility.</content> </subsection> </section> <section> <num value="1406">SEC. 1406. </num><heading>LIMITATION ON USE OF FUNDS FOR DESTRUCTION OF CHEMICAL WEAPONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Limitation</inline>.—</heading><content>No funds authorized to be appropriated under this or any other Act for fiscal year 1998 for Cooperative Threat Reduction programs may be obligated or expended for chemical weapons destruction activities (including activities for the planning, design, or construction of a chemical weapons destruction facility or for the dismantlement of an existing chemical weapons production facility) until the President submits to Congress a written certification under subsection (b).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Presidential Certification</inline>.—</heading><chapeau>A certification under this subsection is either of the following certifications by the President:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>A certification that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>Russia is making reasonable progress toward the implementation of the Bilateral Destruction Agreement;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the United States and Russia have made substantial progress toward the resolution, to the satisfaction of the United States, of outstanding compliance issues under the Wyoming Memorandum of Understanding and the Bilateral Destruction Agreement; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>Russia has rally and accurately declared all information regarding its unitary and binary chemical weapons, chemical weapons facilities, and other facilities associated with chemical weapons.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>A certification that the national security interests of the United States could be undermined by a United States policy not to carry out chemical weapons destruction activities under the Cooperative Threat Reduction programs for which funds are authorized to be appropriated under this or any other Act for fiscal year 1998.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For the purposes of this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The term “Bilateral Destruction Agreement” means the Agreement Between the United States of America and the Union of Soviet Socialist Republics on Destruction and Nonproduction of Chemical Weapons and on Measures to Facilitate the Multilateral Convention on Banning Chemical Weapons, signed on June 1, 1990.<page identifier="/us/stat/111/1962">111 STAT. 1962</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The term “Wyoming Memorandum of Understanding” means the Memorandum of Understanding Between the Government of the United States of America and the Government of the Union of Soviet Socialist Republics Regarding a Bilateral Verification Experiment and Data Exchange Related to Prohibition on Chemical Weapons, signed at Jackson Hole, Wyoming, on September 23, 1989.</content></paragraph> </subsection> </section> <section> <num value="1407">SEC. 1407. </num><heading>LIMITATION ON USE OF FUNDS FOR STORAGE FACILITY FOR RUSSIAN FISSILE MATERIAL.</heading> <chapeau>No fiscal year 1998 Cooperative Threat Reduction funds may be obligated or expended for planning, design, or construction of a storage facility for Russian fissile material until 15 days after the date that is the later of the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The date on which the Secretary of Defense submits to Congress notification that an implementing agreement between the United States and Russia has been entered into that specifies the total cost to the United States for the facility.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The date on which the Secretary submits to Congress notification that an agreement has been entered into between the United States and Russia incorporating the principle of transparency with respect to the use of the facility.</content></paragraph> </section> <section> <num value="1408">SEC. 1408. </num><heading>LIMITATION ON USE OF FUNDS FOR WEAPONS STORAGE SECURITY.</heading> <chapeau>No fiscal year 1998 Cooperative Threat Reduction funds intended for weapons storage security activities in Russia may be obligated or expended until—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the Secretary of Defense submits to Congress a report on the status of negotiations between the United States and Russia on audits and examinations with respect to weapons storage security; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>15 days have elapsed following the date that the report is submitted.</content></paragraph> </section> <section> <num value="1409">SEC. 1409. </num><heading>REPORT ON ISSUES REGARDING PAYMENT OF TAXES, DUTIES, AND OTHER ASSESSMENTS ON ASSISTANCE PROVIDED TO RUSSIA UNDER COOPERATIVE THREAT REDUCTION PROGRAMS.</heading> <chapeau>Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report on issues regarding payment of taxes, duties, and other assessments on assistance provided to Russia under Cooperative Threat Reduction programs. The report shall include the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>A description of any disputes between the United States and Russia with respect to payment by the United States of taxes, duties and other assessments on assistance provided to Russia under a Cooperative Threat Reduction program, including a description of the nature of each dispute, the amount of payment disputed, whether the dispute was resolved, and if the dispute was resolved, the means by which the dispute was resolved.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>A description of the actions taken by the Secretary to prevent disputes in the future between the United States and Russia with respect to payment by the United States of taxes, duties, and other assessments on assistance provided to Russia under a Cooperative Threat Reduction program.<page identifier="/us/stat/111/1963">111 STAT. 1963</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>A description of any agreement between the United States and Russia with respect to payment by the United States of taxes, duties, or other assessments on assistance provided to Russia under a Cooperative Threat Reduction program.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Any proposals of the Secretary for actions that should be taken to prevent disputes between the United States and Russia with respect to payment by the United States of taxes, duties, or other assessments on assistance provided to Russia under a Cooperative Threat Reduction program.</content></paragraph> </section> <section> <num value="1410">SEC. 1410. </num><heading>AVAILABILITY OF FUNDS.</heading> <content>Funds appropriated pursuant to the authorization of appropriations in section 301 for Cooperative Threat Reduction programs shall be available for obligation for three fiscal years.</content> </section> <num value="XV">TITLE XV—</num><heading>FEDERAL CHARTER FOR THE AIR FORCE SERGEANTS ASSOCIATION</heading> <toc> <referenceItem role="section"><designator>Sec. 1501.</designator> <label>Recognition and grant of Federal charter.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1502.</designator> <label>Powers.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1503.</designator> <label>Purposes.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1504.</designator> <label>Service of process.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1505.</designator> <label>Membership.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1506.</designator> <label>Board of directors.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1507.</designator> <label>Officers.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1508.</designator> <label>Restrictions.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1509.</designator> <label>Liability.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1510.</designator> <label>Maintenance and inspection of books and records.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1511.</designator> <label>Audit of financial transactions.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1512.</designator> <label>Annual report.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1513.</designator> <label>Reservation of right to alter, amend, or repeal charter.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1514.</designator> <label>Tax-exempt status required as condition of charter.</label></referenceItem> <referenceItem role="section"><designator>Sec. 1515.</designator> <label>Termination</label></referenceItem> <referenceItem role="section"><designator>Sec. 1516.</designator> <label>Definition of State.</label></referenceItem> </toc> <section> <num value="1501">SEC. 1501. </num><heading>RECOGNITION AND GRANT OF FEDERAL CHARTER.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t36/s5801">36 USC 5801</ref>.</p></sidenote> <content>The Air Force Sergeants Association, a nonprofit corporation organized under the laws of the District of Columbia, is recognized as such and granted a Federal charter.</content> </section> <section> <num value="1502">SEC. 1502. </num><heading>POWERS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t36/s5802">36 USC 5802</ref>.</p></sidenote> <content>The Air Force Sergeants Association (in this title referred to as the “association”) shall have only those powers granted to it through its bylaws and articles of incorporation filed in the District of Columbia and subject to the laws of the District of Columbia.</content> </section> <section> <num value="1503">SEC. 1503. </num><heading>PURPOSES.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t36/s5803">36 USC 5803</ref>.</p></sidenote> <chapeau>The purposes of the association are those provided in its bylaws and articles of incorporation and shall include the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>To help maintain a highly dedicated and professional corps of enlisted personnel within the United States Air Force, including the United States Air Force Reserve, and the Air National Guard.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>To support fair and equitable legislation and Department of the Air Force policies and to influence by lawful means departmental plans, programs, policies, and legislative proposals that affect enlisted personnel of the Regular Air Force, <page identifier="/us/stat/111/1964">111 STAT. 1964</page>the Air Force Reserve, and the Air National Guard, its retirees, and other veterans of enlisted service in the Air Force.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>To actively publicize the roles of enlisted personnel in the United States Air Force.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>To participate in civil and military activities, youth programs, and fundraising campaigns that benefit the United States Air Force.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>To provide for the mutual welfare of members of the association and their families.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>To assist in recruiting for the United States Air Force.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>To assemble together for social activities.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>To maintain an adequate Air Force for our beloved country.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><content>To foster among the members of the association a devotion to fellow airmen.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10) </num><content>To serve the United States and the United States Air Force loyally, and to do all else necessary to uphold and defend the Constitution of the United States.</content></paragraph> </section> <section> <num value="1504">SEC. 1504. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t36/s5804">36 USC 5804</ref>.</p></sidenote><heading>SERVICE OF PROCESS.</heading> <content>With respect to service of process, the association shall comply with the laws of the District of Columbia and those States in which it carries on its activities in furtherance of its corporate purposes.</content> </section> <section> <num value="1505">SEC. 1505. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t36/s5805">36 USC 5805</ref>.</p></sidenote><heading>MEMBERSHIP.</heading> <content>Except as provided in section 1508(g), eligibility for membership in the association and the rights and privileges of members shall be as provided in the bylaws and articles of incorporation of the association.</content> </section> <section> <num value="1506">SEC. 1506. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t36/s5806">36 USC 5806</ref>.</p></sidenote><heading>BOARD OF DIRECTORS.</heading> <content>Except as provided in section 1508(g), the composition of the board of directors of the association and the responsibilities of the board shall be as provided in the bylaws and articles of incorporation of the association and in conformity with the laws of the District of Columbia.</content> </section> <section> <num value="1507">SEC. 1507. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t36/s5807">36 USC 5807</ref>.</p></sidenote><heading>OFFICERS.</heading> <content>Except as provided in section 1508(g), the positions of officers of the association and the election of members to such positions shall be as provided in the bylaws and articles of incorporation of the association and in conformity with the laws of the District of Columbia.</content> </section> <section> <num value="1508">SEC. 1508. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t36/s5808">36 USC 5808</ref>.</p></sidenote><heading>RESTRICTIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Income and Compensation</inline>.—</heading><content>No part of the income or assets of the association may inure to the benefit of any member, officer, or director of the association or be distributed to any such individual during the life of this charter. Nothing in this subsection may be construed to prevent the payment of reasonable compensation to the officers and employees of the association or reimbursement for actual and necessary expenses in amounts approved by the board of directors.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Loans</inline>.—</heading><content>The association may not make any loan to any member, officer, director, or employee of the association.<page identifier="/us/stat/111/1965">111 STAT. 1965</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Issuance of Stock and Payment of Dividends</inline>.—</heading><content>The association may not issue any shares of stock or declare or pay any dividends.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Disclaimer of Congressional or Federal Approval</inline>.—</heading><content>The association may not claim the approval of the Congress or the authorization of the Federal Government for any of its activities by virtue of this title.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Corporate Status</inline>.—</heading><content>The association shall maintain its status as a corporation organized and incorporated under the laws of the District of Columbia.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Corporate Function</inline>.—</heading><content>The association shall function as an educational, patriotic, civic, historical, and research organization under the laws of the District of Columbia.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num><heading><inline class="smallCaps">Nondiscrimination</inline>.—</heading><content>In establishing the conditions of membership in the association and in determining the requirements for serving on the board of directors or as an officer of the association, the association may not discriminate on the basis of race, color, religion, sex, handicap, age, or national origin.</content> </subsection> </section> <section> <num value="1509">SEC. 1509. </num><heading>LIABILITY.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t36/s5809">36 USC 5809</ref>.</p></sidenote> <content>The association shall be liable for the acts of its officers, directors, employees, and agents whenever such individuals act within the scope of their authority.</content> </section> <section> <num value="1510">SEC. 1510. </num><heading>MAINTENANCE AND INSPECTION OF BOOKS AND RECORDS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t36/s5810">36 USC 5810</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Books and Records of Account</inline>.—</heading><content>The association shall keep correct and complete books and records of account and minutes of any proceeding of the association involving any of its members, the board of directors, or any committee having authority under the board of directors.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Names and Addresses of Members</inline>.—</heading><content>The association shall keep at its principal office a record of the names and addresses of all members having the right to vote in any proceeding of the association.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Right To Inspect Books and Records</inline>.—</heading><content>All books and records of the association may be inspected by any member having the right to vote in any proceeding of the association, or by any agent or attorney of such member, for any proper purpose at any reasonable time.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Application of State Law</inline>.—</heading><content>This section may not be construed to contravene any applicable State law.</content> </subsection> </section> <section> <num value="1511">SEC. 1511. </num><heading>AUDIT OF FINANCIAL TRANSACTIONS.</heading> <chapeau>The first section of the Act entitled “An Act to provide for audit of accounts of private corporations established under Federal law”, approved August 30, 1964 (36 U.S.C. 1101), is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by redesignating the paragraph (77) added by section 1811 of Public Law 104–201 (110 Stat. 2762) as paragraph (78); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="79">“(79) </num><content>Air Force Sergeants Association.”.</content></paragraph> </quotedContent> </content></paragraph> </section> <section> <num value="1512">SEC. 1512. </num><heading>ANNUAL REPORT.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t36/s5811">36 USC 5811</ref>.</p></sidenote> <content>The association shall annually submit to Congress a report concerning the activities of the association during the preceding fiscal year. The annual report shall be submitted on the same date as the report of the audit required by reason of the amendment <page identifier="/us/stat/111/1966">111 STAT. 1966</page>made in section 1511. The annual report shall not be printed as a public document.</content> </section> <section> <num value="1513">SEC. 1513. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t36/s5812">36 USC 5812</ref>.</p></sidenote><heading>RESERVATION OF RIGHT TO ALTER, AMEND, OR REPEAL CHARTER.</heading> <content>The right to alter, amend, or repeal this title is expressly reserved to Congress.</content> </section> <section> <num value="1514">SEC. 1514. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t36/s5813">36 USC 5813</ref>.</p></sidenote><heading>TAX-EXEMPT STATUS REQUIRED AS CONDITION OF CHARTER.</heading> <content>If the association fails to maintain its status as an organization exempt from taxation as provided in the Internal Revenue Code of 1986 the charter granted in this title shall terminate.</content> </section> <section> <num value="1515">SEC. 1515. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t36/s5814">36 USC 5814</ref>.</p></sidenote><heading>TERMINATION.</heading> <content>The charter granted in this title shall expire if the association fails to comply with any of the provisions of this title.</content> </section> <section> <num value="1516">SEC. 1516. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t36/s5815">36 USC 5815</ref>.</p></sidenote><heading>DEFINITION OF STATE.</heading> <content>For purposes of this title, the term “State” includes the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, and the territories and possessions of the United States.</content> </section> DIVISION B—

Military Construction Authorization Act for Fiscal Year 1998.

MILITARY CONSTRUCTION AUTHORIZATIONS
SEC. 2001. SHORT TITLE. This division may be cited as the “Military Construction Authorization Act for Fiscal Year 1998”.
<num value="XXI">TITLE XXI—</num><heading>ARMY</heading> <toc> <referenceItem role="section"><designator>Sec. 2101.</designator> <label>Authorized Army construction and land acquisition projects.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2102.</designator> <label>Family housing.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2103.</designator> <label>Improvements to military family housing units.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2104.</designator> <label>Authorization of appropriations, Army.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2105.</designator> <label>Correction in authorized uses of funds, Fort Irwin, California.</label></referenceItem> </toc> <section> <num value="2101">SEC. 2101. </num><heading>AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Inside the United States</inline>.—</heading><content>Using amounts appropriated pursuant to the authorization of appropriations in section 2104(a)(1), the Secretary of the Army may acquire real property and carry out military construction projects for the installations and locations inside the United States, and in the amounts, set forth in the following table: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> <p xmlns="http://schemas.gpo.gov/xml/uslm" role="title" class="centered"><b>Army: Inside the United States</b></p> </caption> <thead> <tr> <th style="text-align:center; border-left:1px solid black; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">State</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Installation or Location</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Amount</th> </tr> </thead> <tbody> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Alabama</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Redstone Arsenal</td> <td style="text-align:right; border-right:1px solid black">$27,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Arizona</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fort Huachuca</td> <td style="text-align:right; border-right:1px solid black">$20,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">California</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fort Irwin</td> <td style="text-align:right; border-right:1px solid black">$11,150,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Weapons Station, Concord</td> <td style="text-align:right; border-right:1px solid black">$23,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Colorado</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fort Carson</td> <td style="text-align:right; border-right:1px solid black">$47,300,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Georgia</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fort Gordon</td> <td style="text-align:right; border-right:1px solid black">$22,000,000</td> </tr> </tbody> </table> <page identifier="/us/stat/111/1967">111 STAT. 1967</page> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> <p xmlns="http://schemas.gpo.gov/xml/uslm" role="title" class="centered"><b>Army: Inside the United States</b>—Continued</p> </caption> <thead> <tr> <th style="text-align:center; border-left:1px solid black; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">State</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Installation or Location</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Amount</th> </tr> </thead> <tbody> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Hunter Army Air Field, Fort Stewart</td> <td style="text-align:right; border-right:1px solid black">$54,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Hawaii</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Schofield Barracks</td> <td style="text-align:right; border-right:1px solid black">$44,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Indiana</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Crane Army Ammunition Activity</td> <td style="text-align:right; border-right:1px solid black">$7,700,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Kansas</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fort Leavenworth</td> <td style="text-align:right; border-right:1px solid black">$63,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fort Riley</td> <td style="text-align:right; border-right:1px solid black">$25,800,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Kentucky</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fort Campbell</td> <td style="text-align:right; border-right:1px solid black">$53,600,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fort Knox</td> <td style="text-align:right; border-right:1px solid black">$7,200,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Missouri</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fort Leonard Wood</td> <td style="text-align:right; border-right:1px solid black">$3,200,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">New Jersey</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fort Monmouth</td> <td style="text-align:right; border-right:1px solid black">$2,050,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">New Mexico</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">White Sands Missile Range</td> <td style="text-align:right; border-right:1px solid black">$6,900,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">New York</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fort Drum</td> <td style="text-align:right; border-right:1px solid black">$24,400,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">North Carolina</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fort Bragg</td> <td style="text-align:right; border-right:1px solid black">$17,700,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Oklahoma</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fort Sill</td> <td style="text-align:right; border-right:1px solid black">$25,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">South Carolina</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Weapons Station, Charleston</td> <td style="text-align:right; border-right:1px solid black">$7,700,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Texas</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fort Bliss</td> <td style="text-align:right; border-right:1px solid black">$7,700,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fort Hood</td> <td style="text-align:right; border-right:1px solid black">$27,200,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fort Sam Houston</td> <td style="text-align:right; border-right:1px solid black">$16,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Virginia</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fort A.P. Hill</td> <td style="text-align:right; border-right:1px solid black">$5,400,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fort Myer</td> <td style="text-align:right; border-right:1px solid black">$8,200,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fort Story</td> <td style="text-align:right; border-right:1px solid black">$2,050,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Washington</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fort Lewis</td> <td style="text-align:right; border-right:1px solid black">$33,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">CONUS Classified</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Classified Location</td> <td style="text-align:right; border-right:1px solid black">$6,500,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black; border-bottom:1px solid black" /> <td style="text-align:right; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Total</td> <td style="text-align:right; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">$598,750,000</td> </tr> </tbody> </table> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Outside the United States</inline>.—</heading><content>Using amounts appropriated pursuant to the authorization of appropriations in section 2104(a)(2), the Secretary of the Army may acquire real property and carry out military construction projects for the locations outside the United States, and in the amounts, set forth in the following table: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> <p xmlns="http://schemas.gpo.gov/xml/uslm" role="title" class="centered"><b>Army: Outside the United States</b></p> </caption> <thead> <tr> <th style="text-align:center; border-left:1px solid black; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Country</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Installation or Location</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Amount</th> </tr> </thead> <tbody> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Germany</td> <td style="text-align:left; border-right:1px solid black">Ansbach</td> <td style="text-align:right; border-right:1px solid black">$22,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black">Heidelberg</td> <td style="text-align:right; border-right:1px solid black">$8,800,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black">Mannheim</td> <td style="text-align:right; border-right:1px solid black">$6,200,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black">Military Support Group, Kaiserslautern</td> <td style="text-align:right; border-right:1px solid black">$6,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Korea</td> <td style="text-align:left; border-right:1px solid black">Camp Casey</td> <td style="text-align:right; border-right:1px solid black">$5,100,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black">Camp Castle</td> <td style="text-align:right; border-right:1px solid black">$8,400,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black">Camp Humphreys</td> <td style="text-align:right; border-right:1px solid black">$32,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black">Camp Red Cloud</td> <td style="text-align:right; border-right:1px solid black">$23,600,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black">Camp Stanley</td> <td style="text-align:right; border-right:1px solid black">$7,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Overseas Classified</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Overseas Classified</td> <td style="text-align:right; border-right:1px solid black">$37,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black; border-bottom:1px solid black" /> <td style="text-align:right; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Total</td> <td style="text-align:right; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">$156,100,000</td> </tr> </tbody> </table> <page identifier="/us/stat/111/1968">111 STAT. 1968</page> </content></subsection> </section> <section> <num value="2102">SEC. 2102. </num><heading>FAMILY HOUSING.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Construction and Acquisition</inline>.—</heading><content>Using amounts appropriated pursuant to authorization of appropriations in section 2104(a)(5)(A), the Secretary of the Army may construct or acquire family housing units (including land acquisition) at the installations, for the purposes, and in the amounts set forth in the following table: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> <p xmlns="http://schemas.gpo.gov/xml/uslm" role="title" class="centered"><b>Army: Family Housing</b></p> </caption> <thead> <tr> <th style="text-align:center; border-left:1px solid black; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">State</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Installation or Location</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Purpose</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Amount</th> </tr> </thead> <tbody> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Arizona</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fort Huachuca</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">55 Units</td> <td style="text-align:right; border-right:1px solid black">$8,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Hawaii</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Schofield Barracks</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">132 Units</td> <td style="text-align:right; border-right:1px solid black">$26,600,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Maryland</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fort Meade</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">56 Units</td> <td style="text-align:right; border-right:1px solid black">$7,900,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">New Jersey</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Picatinny Arsenal</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">35 Units</td> <td style="text-align:right; border-right:1px solid black">$7,300,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">North Carolina</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fort Bragg</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">174 Units</td> <td style="text-align:right; border-right:1px solid black">$20,150,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Texas</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fort Bliss</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">91 Units</td> <td style="text-align:right; border-right:1px solid black">$12,900,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fort Hood</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">130 Units</td> <td style="text-align:right; border-right:1px solid black">$18,800,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black; border-bottom:1px solid black" /> <td style="text-align:left; border-right:1px solid black; border-bottom:1px solid black" /> <td style="text-align:right; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Total</td> <td style="text-align:right; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">$101,650,000</td> </tr> </tbody> </table> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Planning and Design</inline>.—</heading><content>Using amounts appropriated pursuant to the authorization of appropriations in section 2104(a)(5)(A), the Secretary of the Army may carry out architectural and engineering services and construction design activities with respect to the construction or improvement of family housing units in an amount not to exceed $9,550,000.</content> </subsection> </section> <section> <num value="2103">SEC. 2103. </num><heading>IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.</heading> <content>Subject to section 2825 of title 10, United States Code, and using amounts appropriated pursuant to the authorization of appropriations in section 2104(a)(5)(A), the Secretary of the Army may improve existing military family housing units in an amount not to exceed $86,100,000.</content> </section> <section> <num value="2104">SEC. 2104. </num><heading>AUTHORIZATION OF APPROPRIATIONS, ARMY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Funds are hereby authorized to be appropriated for fiscal years beginning after September 30, 1997, for military construction, land acquisition, and military family housing functions of the Department of the Army in the total amount of $2,010,466,000 as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>For military construction projects inside the United States authorized by section 2101(a), $435,350,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>For the military construction projects outside the United States authorized by section 2101(b), $156,100,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>For unspecified minor military construction projects authorized by section 2805 of title 10, United States Code, $7,400,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>For architectural and engineering services and construction design under section 2807 of title 10, United States Code, $65,577,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><chapeau>For military family housing functions:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>For construction and acquisition, planning and design, and improvement of military family housing and facilities, $197,300,000.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>For support of military family housing (including the functions described in section 2833 of title 10, United States Code), $1,145,339,000.<page identifier="/us/stat/111/1969">111 STAT. 1969</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>For the construction of the National Range Control Center, White Sands Missile Range, New Mexico, authorized by section 2101(a) of the Military Construction Authorization Act for Fiscal Year 1997 (division B of Public Law 104–201; 110 Stat. 2763), $18,000,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>For the construction of the whole barracks complex renewal, Fort Knox, Kentucky, authorized by section 2101(a) of the Military Construction Authorization Act for Fiscal Year 1997 (division B of Public Law 104–201; 110 Stat. 2763), $22,000,000.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Limitation on Total Cost of Construction Projects</inline>.—</heading><chapeau>Notwithstanding the cost variations authorized by section 2853 of title 10, United States Code, and any other cost variation authorized by law, the total cost of all projects carried out under section 2101 of this Act may not exceed—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the total amount authorized to be appropriated under paragraphs (1) and (2) of subsection (a);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>$14,400,000 (the balance of the amount authorized under section 2101(a) for the construction of the Force XXI Soldier Development School at Fort Hood, Texas);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>$24,000,000 (the balance of the amount authorized under section 2101(a) for rail yard expansion at Fort Carson, Colorado);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>$43,000,000 (the balance of the amount authorized under section 2101(a) for the construction of a disciplinary barracks at Fort Leavenworth, Kansas);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>$42,500,000 (the balance of the amount authorized under section 2101(a) for the construction of a barracks at Hunter Army Airfield, Fort Stewart, Georgia);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>$17,000,000 (the balance of the amount authorized under section 2101(a) for the construction of a barracks at Fort Sill, Oklahoma);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>$14,000,000 (the balance of the amount authorized under section 2101(a) for the construction of a missile software engineering facility at Redstone Arsenal, Alabama); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>$8,500,000 (the balance of the amount authorized under section 2101(a) for the construction of an aerial gunnery range at Fort Drum, New York).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Adjustment</inline>.—</heading><content>The total amount authorized to be appropriated pursuant to paragraphs (1) through (7) of subsection (a) is the sum of the amounts authorized in such paragraphs, reduced by $36,600,000, which represents the combination of savings resulting from adjustments to foreign currency exchange rates for military construction projects and the support of military family housing outside the United States.</content> </subsection> </section> <section> <num value="2105">SEC. 2105. </num><heading>CORRECTION IN AUTHORIZED USES OF FUNDS, FORT IRWIN, CALIFORNIA.</heading> <chapeau>The Secretary of the Army may carry out a military construction project at Fort Irwin, California, to construct a heliport for the National Training Center at Barstow-Daggett, California, using the following amounts:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Amounts appropriated pursuant to the authorization of appropriations in section 2104(a)(1) of the Military Construction Authorization Act for Fiscal Year 1995 (division B of Public Law 103–337; 108 Stat. 3029) for a military construction project <page identifier="/us/stat/111/1970">111 STAT. 1970</page>involving the construction of an air field at Fort Irwin, as authorized by section 2101(a) of such Act (108 Stat. 3027).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Amounts appropriated pursuant to the authorization of appropriations in section 2104(a)(1) of the Military Construction Authorization Act for Fiscal Year 1996 (division B of Public Law 104–106; 110 Stat. 524) for a military construction project involving the construction of an air field at Fort Irwin, as authorized by section 2101(a) of such Act (110 Stat. 523).</content></paragraph> </section> <num value="XXII">TITLE XXII—</num><heading>NAVY</heading> <toc> <referenceItem role="section"><designator>Sec. 2201.</designator> <label>Authorized Navy construction and land acquisition projects.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2202.</designator> <label>Family housing.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2203.</designator> <label>Improvements to military family housing units.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2204.</designator> <label>Authorization of appropriations, Navy.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2205.</designator> <label>Authorization of military construction project at Naval Station, Pascagoula, Mississippi, for which funds have been appropriated.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2206.</designator> <label>Increase in authorization for military construction projects at Naval Station Roosevelt Roads, Puerto Rico.</label></referenceItem> </toc> <section> <num value="2201">SEC. 2201. </num><heading>AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION PROJECTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Inside the United States</inline>.—</heading><content>Using amounts appropriated pursuant to the authorization of appropriations in section 2204(a)(1), the Secretary of the Navy may acquire real property and carry out military construction projects for the installations and locations inside the United States, and in the amounts, set forth in the following table: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> <p xmlns="http://schemas.gpo.gov/xml/uslm" role="title" class="centered"><b>Navy: Inside the United States</b></p> </caption> <thead> <tr> <th style="text-align:center; border-left:1px solid black; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">State</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Installation or Location</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Amount</th> </tr> </thead> <tbody> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Arizona</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Marine Corps Air Station, Yuma</td> <td style="text-align:right; border-right:1px solid black">$12,250,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Navy Detachment, Camp Navajo</td> <td style="text-align:right; border-right:1px solid black">$11,426,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">California</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Marine Corps Air Station, Camp Pendleton</td> <td style="text-align:right; border-right:1px solid black">$14,020,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Marine Corps Air Station, Miramar</td> <td style="text-align:right; border-right:1px solid black">$8,700,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Marine Corps Air-Ground Combat Center, Twentynine Palms</td> <td style="text-align:right; border-right:1px solid black">$3,810,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Marine Corps Base, Camp Pendleton</td> <td style="text-align:right; border-right:1px solid black">$60,069,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Air Facility, El Centro</td> <td style="text-align:right; border-right:1px solid black">$11,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Air Station, North Island</td> <td style="text-align:right; border-right:1px solid black">$19,600,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Amphibious Base, Coronado</td> <td style="text-align:right; border-right:1px solid black">$10,100,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Construction Battalion Center, Port Hueneme</td> <td style="text-align:right; border-right:1px solid black">$3,200,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Connecticut</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Submarine Base, New London</td> <td style="text-align:right; border-right:1px solid black">$21,960,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Florida</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Air Station, Jacksonville</td> <td style="text-align:right; border-right:1px solid black">$3,480,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Air Station, Whiting Field</td> <td style="text-align:right; border-right:1px solid black">$1,300,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Station, Mayport</td> <td style="text-align:right; border-right:1px solid black">$17,940,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Hawaii</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fort DeRussey</td> <td style="text-align:right; border-right:1px solid black">$9,500,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Marine Corps Air Station, Kaneohe Bay</td> <td style="text-align:right; border-right:1px solid black">$19,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Communications and Telecommunications Area Master Station Eastern Pacific, Honolulu</td> <td style="text-align:right; border-right:1px solid black">$3,900,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Station, Pearl Harbor</td> <td style="text-align:right; border-right:1px solid black">$25,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Illinois</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Training Center, Great Lakes</td> <td style="text-align:right; border-right:1px solid black">$41,220,000</td> </tr> </tbody> </table> <page identifier="/us/stat/111/1971">111 STAT. 1971</page> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> <p xmlns="http://schemas.gpo.gov/xml/uslm" role="title" class="centered"><b>Navy: Inside the United States</b>—Continued</p> </caption> <thead> <tr> <th style="text-align:center; border-left:1px solid black; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">State</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Installation or Location</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Amount</th> </tr> </thead> <tbody> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Indiana</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Surface Warfare Center, Crane</td> <td style="text-align:right; border-right:1px solid black">$4,120,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Maryland</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Electronics System Command, St. Ingoes</td> <td style="text-align:right; border-right:1px solid black">$2,610,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Mississippi</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Air Station, Meridian</td> <td style="text-align:right; border-right:1px solid black">$7,050,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">North Carolina</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Marine Corps Air Station, Cherry Point</td> <td style="text-align:right; border-right:1px solid black">$8,800,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Marine Corps Air Station, New River</td> <td style="text-align:right; border-right:1px solid black">$19,900,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Rhode Island</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Undersea Warfare Center Division, Newport</td> <td style="text-align:right; border-right:1px solid black">$8,900,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">South Carolina</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Marine Corps Air Station, Beaufort</td> <td style="text-align:right; border-right:1px solid black">$17,730,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Marine Corps Reserve Detachment Parris Island</td> <td style="text-align:right; border-right:1px solid black">$3,200,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Texas</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Air Station, Corpus Christi</td> <td style="text-align:right; border-right:1px solid black">$800,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Virginia</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">AEGIS Training Center, Dahlgren</td> <td style="text-align:right; border-right:1px solid black">$6,600,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fleet Combat Training Center, Dam Neck</td> <td style="text-align:right; border-right:1px solid black">$7,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Air Station, Norfolk</td> <td style="text-align:right; border-right:1px solid black">$18,240,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Air Station, Oceana</td> <td style="text-align:right; border-right:1px solid black">$28,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Amphibious Base, Little Creek</td> <td style="text-align:right; border-right:1px solid black">$8,685,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Shipyard. Norfolk, Portsmouth</td> <td style="text-align:right; border-right:1px solid black">$29,410,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Station, Norfolk</td> <td style="text-align:right; border-right:1px solid black">$18,850,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Surface Warfare Center, Dahlgren</td> <td style="text-align:right; border-right:1px solid black">$13,880,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Weapons Station, Yorktown</td> <td style="text-align:right; border-right:1px solid black">$14,547,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Washington</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Air Station, Whidbey Island</td> <td style="text-align:right; border-right:1px solid black">$1,100,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Puget Sound Naval Shipyard, Bremerton</td> <td style="text-align:right; border-right:1px solid black">$4,400,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black; border-bottom:1px solid black" /> <td style="text-align:right; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Total</td> <td style="text-align:right; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">$521,297,000</td> </tr> </tbody> </table> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Outside the United States</inline>.—</heading><content>Using amounts appropriated pursuant to the authorization of appropriations in section 2204(a)(2), the Secretary of the Navy may acquire real property and carry out military construction projects for the installations and locations outside the United States, and in the amounts, set forth in the following table: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> <p xmlns="http://schemas.gpo.gov/xml/uslm" role="title" class="centered"><b>Navy: Outside the United States</b></p> </caption> <thead> <tr> <th style="text-align:center; border-left:1px solid black; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Country</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Installation or Location</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Amount</th> </tr> </thead> <tbody> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Bahrain</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Administrative Support Unit, Bahrain</td> <td style="text-align:right; border-right:1px solid black">$30,100,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Guam</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Communications and Telecommunications Area Master Station Western Pacific, Guam</td> <td style="text-align:right; border-right:1px solid black">$4,050,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Italy</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Air Station, Sigonella</td> <td style="text-align:right; border-right:1px solid black">$21,440,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Support Activity, Naples</td> <td style="text-align:right; border-right:1px solid black">$8,200,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">United Kingdom</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Joint Maritime Communications Center, St. Mawgan</td> <td style="text-align:right; border-right:1px solid black">$2,330,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black; border-bottom:1px solid black" /> <td style="text-align:right; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Total</td> <td style="text-align:right; border-right:1px solid black; border-bottom:1px solid black; border-top:1px solid black">$66,120,000</td> </tr> </tbody> </table> <page identifier="/us/stat/111/1972">111 STAT. 1972</page> </content></subsection> </section> <section> <num value="2202">SEC. 2202. </num><heading>FAMILY HOUSING.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Construction and Acquisition</inline>.—</heading><content>Using amounts appropriated pursuant to the authorization of appropriations in section 2204(a)(5)(A), the Secretary of the Navy may construct or acquire family housing units (including land acquisition) at the installations, for the purposes, and in the amounts set forth in the following table: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> <p xmlns="http://schemas.gpo.gov/xml/uslm" role="title" class="centered"><b>Navy: Family Housing</b></p> </caption> <thead> <tr> <th style="text-align:center; border-left:1px solid black; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">State</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Installation or Location</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Purpose</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Amount</th> </tr> </thead> <tbody> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">California</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Marine Corps Air Station, Miramar</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">166 Units</td> <td style="text-align:right; border-right:1px solid black">$28,881,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Marine Corps Air-Ground Combat Center, Twentynine</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">132 Units</td> <td style="text-align:right; border-right:1px solid black">$23,891,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Marine Corps Base, Camp Pendleton</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">171 Units</td> <td style="text-align:right; border-right:1px solid black">$22,518,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Air Station, Lemoore</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">128 Units</td> <td style="text-align:right; border-right:1px solid black">$23,226,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Complex, San Diego</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">94 Units</td> <td style="text-align:right; border-right:1px solid black">$13,500,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Hawaii</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Complex, Pearl Harbor</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">72 Units</td> <td style="text-align:right; border-right:1px solid black">$13,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Louisiana</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Complex, New Orleans</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">100 Units</td> <td style="text-align:right; border-right:1px solid black">$11,930,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Texas</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Complex, Kingsville and Corpus Christi</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">212 Units</td> <td style="text-align:right; border-right:1px solid black">$22,250,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Washington</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Air Station, Whidbey Island</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">102 Units</td> <td style="text-align:right; border-right:1px solid black">$16,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black; border-bottom:1px solid black" /> <td style="text-align:left; border-right:1px solid black; border-bottom:1px solid black" /> <td style="text-align:right; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Total</td> <td style="text-align:right; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">$175,196,000</td> </tr> </tbody> </table> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Planning and Design</inline>.—</heading><content>Using amounts appropriated pursuant to the authorization of appropriation in section 2204(a)(5)(A), the Secretary of the Navy may carry out architectural and engineering services and construction design activities with respect to the construction or improvement of military family housing units in an amount not to exceed $15,100,000.</content> </subsection> </section> <section> <num value="2203">SEC. 2203. </num><heading>IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.</heading> <content>Subject to section 2825 of title 10, United States Code, and using amounts appropriated pursuant to the authorization of appropriations in section 2204(a)(5)(A), the Secretary of the Navy may improve existing military family housing units in an amount not to exceed $203,536,000.</content> </section> <section> <num value="2204">SEC. 2204. </num><heading>AUTHORIZATION OF APPROPRIATIONS, NAVY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Funds are hereby authorized to be appropriated for fiscal years beginning after September 30, 1997, for military construction, land acquisition, and military family housing functions of the Department of the Navy in the total amount of $2,027,339,000 as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>For military construction projects inside the United States authorized by section 2201(a), $521,297,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>For military construction projects outside the United States authorized by section 2201(b), $66,120,000.<page identifier="/us/stat/111/1973">111 STAT. 1973</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>For unspecified minor construction projects authorized by section 2805 of title 10, United States Code, $11,460,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>For architectural and engineering services and construction design under section 2807 of title 10, United States Code, $46,489,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><chapeau>For military family housing functions:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>For construction and acquisition, planning and design, and improvement of military family housing and facilities, $393,832,000.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>For support of military housing (including functions described in section 2833 of title 10, United States Code), $976,504,000.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>For construction of a bachelor enlisted quarters at Naval Hospital, Great Lakes, Illinois, authorized by section 2201(a) of the Military Construction Authorization Act for Fiscal Year 1997 (division B of Public Law 104–201; 110 Stat. 2766), $5,200,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>For construction of a bachelor enlisted quarters at Naval Station, Roosevelt Roads, Puerto Rico, authorized by section 2201(a) of the Military Construction Authorization Act for Fiscal Year 1997 (division B of Public Law 104–201; 110 Stat. 2767), $14,600,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>For construction of a large anecohic chamber facility at Patuxent River Naval Air Warfare Center, Maryland, authorized by section 2201(a) of the Military Construction Authorization Act for Fiscal Year 1993 (division B of Public Law 102484; 106 Stat. 2590), $9,000,000.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Limitation on Total Cost of Construction Projects</inline>.—</heading><content>Notwithstanding the cost variations authorized by section 2853 of title 10, United States Code, and any other cost variation authorized by law, the total cost of all projects carried out under section 2201 of this Act may not exceed the total amount authorized to be appropriated under paragraphs (1) and (2) of subsection (a).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Adjustments</inline>.—</heading><chapeau>The total amount authorized to be appropriated pursuant to paragraphs (1) through (8) of subsection (a) is the sum of the amounts authorized to be appropriated in such paragraphs, reduced by—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>$8,463,000, which represents the combination of project savings in military family housing construction resulting from favorable bids, reduced overhead costs, and cancellations due to force structure changes; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>$8,700,000, which represents the combination of savings resulting from adjustments to foreign currency exchange rates for military construction projects and the support of military family housing outside the United States.</content></paragraph> </subsection> </section> <section> <num value="2205">SEC. 2205. </num><heading>AUTHORIZATION OF MILITARY CONSTRUCTION PROJECT AT NAVAL STATION, PASCAGOULA, MISSISSIPPI, FOR WHICH FUNDS HAVE BEEN APPROPRIATED.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Authorization</inline>.—</heading><chapeau>The table in section 2201(a) of the Military Construction Authorization Act for Fiscal Year 1997 (division B of Public Law 104–201; 110 Stat. 2766) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out the amount identified as the total and inserting in lieu thereof “$594,982,000”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting after the item relating to Stennis Space Center, Mississippi, the following new item:<page identifier="/us/stat/111/1974">111 STAT. 1974</page> <quotedContent> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <tbody> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">     </td> <td style="text-align:left; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black" leaders="yes">“Naval Station, Pascagoula</td> <td style="text-align:right; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">$4,990,000”.</td> </tr> </tbody> </table> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><chapeau>Section 2204(a) of such Act (110 Stat. 2769) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in the matter preceding the paragraphs, by striking out “$2,213,731,000” and inserting in lieu thereof “$2,218,721,000”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in paragraph (1), by striking out “$579,312,000” and inserting in lieu thereof “$584,302,000”.</content></paragraph> </subsection> </section> <section> <num value="2206">SEC. 2206. </num><heading>INCREASE IN AUTHORIZATION FOR MILITARY CONSTRUCTION PROJECTS AT NAVAL STATION ROOSEVELT ROADS, PUERTO RICO.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Increase</inline>.—</heading><chapeau>The table in section 2201(b) of the Military Construction Authorization Act for Fiscal Year 1997 (division B of Public Law 104–201; 110 Stat. 2767) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out the amount identified as the total and inserting in lieu thereof “$66,150,000”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in the amount column of the item relating to Naval Station, Roosevelt Roads, Puerto Rico, by striking out “$23,600,000” and inserting in lieu thereof “$24,100,000”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>Section 2204(b)(4) of such Act (110 Stat. 2770) is amended by striking out “$14,100,000” and inserting in lieu thereof “$14,600,000”.</content> </subsection> </section> <num value="XXIII">TITLE XXIII—</num><heading>AIR FORCE</heading> <toc> <referenceItem role="section"><designator>Sec. 2301.</designator> <label>Authorized Air Force construction and land acquisition projects.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2302.</designator> <label>Family housing.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2303.</designator> <label>Improvements to military family housing units.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2304.</designator> <label>Authorization of appropriations, Air Force.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2305.</designator> <label>Authorization of military construction project at McConnell Air Force Base, Kansas, for which funds have been appropriated.</label></referenceItem> </toc> <section> <num value="2301">SEC. 2301. </num><heading>AUTHORIZED AIR FORCE CONSTRUCTION AND LAND ACQUISITION PROJECTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Inside the United States</inline>.—</heading><content>Using amounts appropriated pursuant to the authorization of appropriations in section 2304(a)(1), the Secretary of the Air Force may acquire real property and carry out military construction projects for the installations and locations inside the United States, and in the amounts, set forth in the following table: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> <p xmlns="http://schemas.gpo.gov/xml/uslm" role="title" class="centered"><b>Air Force: Inside the United States</b></p> </caption> <thead> <tr> <th style="text-align:center; border-left:1px solid black; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">State</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Installation or Location</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Amount</th> </tr> </thead> <tbody> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Alabama</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Maxwell Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$14,874,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Alaska</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Clear Air Station</td> <td style="text-align:right; border-right:1px solid black">$67,069,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Eielson Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$13,764,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Elmendorf Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$6,100,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Indian Mountain</td> <td style="text-align:right; border-right:1px solid black">$1,991,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Arizona</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Luke Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$10,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Arkansas</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Little Rock Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$3,400,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">California</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Edwards Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$2,887,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Vandenberg Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$26,876,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Colorado</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Buckley Air National Guard Base</td> <td style="text-align:right; border-right:1px solid black">$6,718,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Falcon Air Force Station</td> <td style="text-align:right; border-right:1px solid black">$10,551,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Peterson Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$4,081,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">United States Air Force Academy</td> <td style="text-align:right; border-right:1px solid black">$15,229,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Florida</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Eglin Auxiliary Field 9</td> <td style="text-align:right; border-right:1px solid black">$6,470,000</td> </tr> </tbody> </table> <page identifier="/us/stat/111/1975">111 STAT. 1975</page> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> <p xmlns="http://schemas.gpo.gov/xml/uslm" role="title" class="centered"><b>Air Force: Inside the United States</b>—Continued</p> </caption> <thead> <tr> <th style="text-align:center; border-left:1px solid black; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">State</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Installation or Location</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Amount</th> </tr> </thead> <tbody> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">MacDill Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$9,643,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Georgia</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Moody Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$6,800,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Robins Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$27,763,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Idaho</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Mountain Home Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$30,669,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Kansas</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">McConnell Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$14,519,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Louisiana</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Barksdale Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$19,410,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Mississippi</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Keesler Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$30,855,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Missouri</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Whiteman Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$17,419,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Montana</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Malmstrom Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$4,500,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Nevada</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Nellis Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$1,950,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">New Jersey</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">McGuire Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$18,754,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">New Mexico</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Kirtland Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$20,300,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">North Carolina</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Pope Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$10,956,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">North Dakota</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Grand Forks Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$8,560,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Minot Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$5,200,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Ohio</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Wright-Patterson Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$19,350,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Oklahoma</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Altus Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$11,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Tinker Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$9,655,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Vance Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$7,700,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">South Carolina</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Shaw Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$6,072,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">South Dakota</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Ellsworth Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$6,600,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Tennessee</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Arnold Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$20,650,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Texas</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Dyess Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$10,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Laughlin Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$4,800,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Randolph Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$2,488,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Utah</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Hill Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$6,470,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Virginia</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Langley Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$4,031,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Washington</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fairchild Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$20,316,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">McChord Air Force Base</td> <td style="text-align:right; border-right:1px solid black">$6,470,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">CONUS Classified</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Classified Location</td> <td style="text-align:right; border-right:1px solid black">$6,175,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black; border-bottom:1px solid black" /> <td style="text-align:right; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Total</td> <td style="text-align:right; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">$559,085,000</td> </tr> </tbody> </table> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Outside the United States</inline>.—</heading><content>Using amounts appropriated pursuant to the authorization of appropriations in section 2304(aX2), the Secretary of the Air Force may acquire real property and carry out military construction projects for the installations and locations outside the United States, and in the amounts, set forth in the following table: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> <p xmlns="http://schemas.gpo.gov/xml/uslm" role="title" class="centered"><b>Air Force: Outside the United States</b></p> </caption> <thead> <tr> <th style="text-align:center; border-left:1px solid black; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Country</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Installation or Location</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Amount</th> </tr> </thead> <tbody> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Germany</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Spangdahlem Air Base</td> <td style="text-align:right; border-right:1px solid black">$18,500,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Italy</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Aviano Air Base</td> <td style="text-align:right; border-right:1px solid black">$15,220,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Korea</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Kunsan Air Base</td> <td style="text-align:right; border-right:1px solid black">$10,325,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Portugal</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Lajes Field, Azores</td> <td style="text-align:right; border-right:1px solid black">$4,800,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">United Kingdom</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Royal Air Force, Lakenheath</td> <td style="text-align:right; border-right:1px solid black">$11,400,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Overseas Classified</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Classified Location</td> <td style="text-align:right; border-right:1px solid black">$29,100,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black; border-bottom:1px solid black" /> <td style="text-align:right; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Total</td> <td style="text-align:right; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">$89,345,000</td> </tr> </tbody> </table> </content></subsection> </section> <section> <num value="2302">SEC. 2302. </num><heading>FAMILY HOUSING.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Construction and Acquisition</inline>.—</heading><content>Using amounts appropriated pursuant to the authorization of appropriations in section 2304(a)(5)(A), the Secretary of the Air Force may construct or acquire family housing units (including land acquisition) at the <page identifier="/us/stat/111/1976">111 STAT. 1976</page>installations, for the purposes, and in the amounts set forth in the following table: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> <p xmlns="http://schemas.gpo.gov/xml/uslm" role="title" class="centered"><b>Air Force: Family Housing</b></p> </caption> <thead> <tr> <th style="text-align:center; border-left:1px solid black; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">State</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Installation or Location</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Purpose</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Amount</th> </tr> </thead> <tbody> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">California</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Edwards Air Force Base</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">51 Units</td> <td style="text-align:right; border-right:1px solid black">$8,500,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Travis Air Force Base</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">70 Units</td> <td style="text-align:right; border-right:1px solid black">$9,714,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Vandenberg Air Force Base</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">108 Units</td> <td style="text-align:right; border-right:1px solid black">$17,100,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Delaware</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Dover Air Force Base</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Ancillary Facility</td> <td style="text-align:right; border-right:1px solid black">$831,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">District of Columbia</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Bolling Air Force Base</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">46 Units</td> <td style="text-align:right; border-right:1px solid black">$5,100,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Florida</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">MacDill Air Force Base</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">58 Units</td> <td style="text-align:right; border-right:1px solid black">$10,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Tyndall Air Force Base</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">32 Units</td> <td style="text-align:right; border-right:1px solid black">$4,200,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Georgia</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Robins Air Force Base</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">60 Units</td> <td style="text-align:right; border-right:1px solid black">$6,800,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Idaho</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Mountain Home Air Force Base</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">60 Units</td> <td style="text-align:right; border-right:1px solid black">$11,032,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Kansas</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">McConnell Air Force Base</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">19 Units</td> <td style="text-align:right; border-right:1px solid black">$2,951,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">McConnell Air Force Base</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Ancillary Facility</td> <td style="text-align:right; border-right:1px solid black">$581,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Mississippi</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Columbus Air Force Base</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">50 Units</td> <td style="text-align:right; border-right:1px solid black">$6,200,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Keesler Air Force Base</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">40 Units</td> <td style="text-align:right; border-right:1px solid black">$5,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Montana</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Malmstrom Air Force Base</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">100 Units</td> <td style="text-align:right; border-right:1px solid black">$17,842,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">New Mexico</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Kirtland Air Force Base</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">180 Units</td> <td style="text-align:right; border-right:1px solid black">$20,900,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">North Dakota</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Grand Forks Air Force Base</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">42 Units</td> <td style="text-align:right; border-right:1px solid black">$7,936,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Texas</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Dyess Air Force Base</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">70 Units</td> <td style="text-align:right; border-right:1px solid black">$10,503,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Goodfellow Air Force Base</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">3 Units</td> <td style="text-align:right; border-right:1px solid black">$500,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Lackland Air Force Base</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">50 Units</td> <td style="text-align:right; border-right:1px solid black">$7,400,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Wyoming</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">F. E. Warren Air Force Base</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">52 Units</td> <td style="text-align:right; border-right:1px solid black">$6,853,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black; border-bottom:1px solid black" /> <td style="text-align:left; border-right:1px solid black; border-bottom:1px solid black" /> <td style="text-align:right; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Total</td> <td style="text-align:right; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">$159,943,000</td> </tr> </tbody> </table> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Planning and Design</inline>.—</heading><content>Using amounts appropriated pursuant to the authorization of appropriations in section 2304(a)(5)(A), the Secretary of the Air Force may carry out architectural and engineering services and construction design activities with respect to the construction or improvement of military family housing units in an amount not to exceed $11,971,000.</content> </subsection> </section> <section> <num value="2303">SEC. 2303. </num><heading>IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.</heading> <content>Subject to section 2825 of title 10, United States Code, and using amounts appropriated pursuant to the authorization of appropriations in section 2304(a)(5)(A), the Secretary of the Air Force may improve existing military family housing units in an amount not to exceed $123,795,000.<page identifier="/us/stat/111/1977">111 STAT. 1977</page></content> </section> <section> <num value="2304">SEC. 2304. </num><heading>AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Funds are hereby authorized to be appropriated for fiscal years beginning after September 30, 1997, for military construction, land acquisition, and military family housing functions of the Department of the Air Force in the total amount of $1,791,640,000 as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>For military construction projects inside the United States authorized by section 2301(a), $559,085,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>For military construction projects outside the United States authorized by section 2301(b), $89,345,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>For unspecified minor construction projects authorized by section 2805 of title 10, United States Code, $8,545,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>For architectural and engineering services and construction design under section 2807 of title 10, United States Code, $44,880,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><chapeau>For military housing functions:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>For construction and acquisition, planning and design, and improvement of military family housing and facilities, $295,709,000.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>For support of military family housing (including the functions described in section 2833 of title 10, United States Code), $830,234,000.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Limitation on Total Cost of Construction Projects</inline>.—</heading><content>Notwithstanding the cost variations authorized by section 2853 of title 10, United States Code, and any other cost variation authorized by law, the total cost of all projects carried out under section 2301 of this Act may not exceed the total amount authorized to be appropriated under paragraphs (1) and (2) of subsection (a).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Adjustments</inline>.—</heading><chapeau>The total amount authorized to be appropriated pursuant to paragraphs (1) through (5) of subsection (a) is the sum of the amounts authorized to be appropriated in such paragraphs, reduced by—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>$23,858,000, which represents the combination of project savings in military construction resulting from favorable bids, reduced overhead costs, and cancellations due to force structure changes; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>$12,300,000, which represents the combination of savings resulting from adjustments to foreign currency exchange rates for military construction projects and the support of military family housing outside the United States.</content></paragraph> </subsection> </section> <section> <num value="2305">SEC. 2305. </num><heading>AUTHORIZATION OF MILITARY CONSTRUCTION PROJECT AT MCCONNELL AIR FORCE BASE, KANSAS, FOR WHICH FUNDS HAVE BEEN APPROPRIATED.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Authorization</inline>.—</heading><chapeau>The table in section 2301(a) of the Military Construction Authorization Act for Fiscal Year 1997 (division B of Public Law 104–201; 110 Stat. 2771) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out the amount identified as the total and inserting in lieu thereof “$610,534,000”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in the amount column of the item relating to McConnell Air Force Base, Kansas, by striking out “$19,130,000” and inserting in lieu thereof “$25,830,000”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><chapeau>Section 2304(a) of such Act (110 Stat. 2774) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in the matter preceding paragraph (1), by striking out “$1,894,594,000” and inserting in lieu thereof “$1,901,294,000” and<page identifier="/us/stat/111/1978">111 STAT. 1978</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in paragraph (1), by striking out “$603,834,000” and inserting in lieu thereof “$610,534,000”.</content></paragraph> </subsection> </section> <num value="XXIV">TITLE XXIV—</num><heading>DEFENSE AGENCIES</heading> <toc> <referenceItem role="section"><designator>Sec. 2401.</designator> <label>Authorized Defense Agencies construction and land acquisition projects.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2402.</designator> <label>Military housing planning and design.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2403.</designator> <label>Improvements to military family housing units.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2404.</designator> <label>Energy conservation projects.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2405.</designator> <label>Authorization of appropriations, Defense Agencies.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2406.</designator> <label>Clarification of authority relating to fiscal year 1997 project at Naval Station, Pearl Harbor. Hawaii.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2407.</designator> <label>Correction in authorized uses of funds, McClellan Air Force Base, California.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2408.</designator> <label>Modification of authority to carry out certain fiscal year 1995 projects.</label></referenceItem> </toc> <section> <num value="2401">SEC. 2401. </num><heading>AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND LAND ACQUISITION PROJECTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Inside the United States</inline>.—</heading><content>Using amounts appropriated pursuant to the authorization of appropriations in section 2405(a)(1), the Secretary of Defense may acquire real property and carry out military construction projects for the installations and locations inside the United States, and in the amounts, set forth in the following table: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> <p xmlns="http://schemas.gpo.gov/xml/uslm" role="title" class="centered"><b>Defense Agencies: Inside the United States</b></p> </caption> <thead> <tr> <th style="text-align:center; border-left:1px solid black; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Agency</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Installation or Location</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Amount</th> </tr> </thead> <tbody> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Defense Commissary Agency</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fort Lee, Virginia</td> <td style="text-align:right; border-right:1px solid black">$9,300,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Defense Finance and Accounting Service</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Columbus Center, Ohio</td> <td style="text-align:right; border-right:1px solid black">$9,722,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Air Station, Millington, Tennessee</td> <td style="text-align:right; border-right:1px solid black">$6,906,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Station, Norfolk, Virginia</td> <td style="text-align:right; border-right:1px solid black">$12,800,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Station, Pearl Harbor, Hawaii</td> <td style="text-align:right; border-right:1px solid black">$10,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Defense Intelligence Agency</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Bolling Air Force Base, District of Columbia</td> <td style="text-align:right; border-right:1px solid black">$7,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Redstone Arsenal, Alabama</td> <td style="text-align:right; border-right:1px solid black">$32,700,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Defense Logistics Agency</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Defense Distribution Depot—DDNV, Virginia</td> <td style="text-align:right; border-right:1px solid black">$16,656,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Defense Distribution New Cumberland—DDSP, Pennsylvania</td> <td style="text-align:right; border-right:1px solid black">$15,500,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Defense Fuel Support Point, Craney Island, Virginia</td> <td style="text-align:right; border-right:1px solid black">$22,100,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Defense General Supply Center, Richmond (DLA), Virginia</td> <td style="text-align:right; border-right:1px solid black">$5,200,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Elmendorf Air Force Base, Alaska</td> <td style="text-align:right; border-right:1px solid black">$21,700,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Air Station, Jacksonville, Florida</td> <td style="text-align:right; border-right:1px solid black">$9,800,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Truax Field, Wisconsin</td> <td style="text-align:right; border-right:1px solid black">$4,500,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Westover Air Reserve Base, Massachusetts</td> <td style="text-align:right; border-right:1px solid black">$4,700,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">CONUS Various, CONUS Various</td> <td style="text-align:right; border-right:1px solid black">$11,275,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Defense Medical Facilities Office</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fort Campbell, Kentucky</td> <td style="text-align:right; border-right:1px solid black">$13,600,000</td> </tr> </tbody> </table> <page identifier="/us/stat/111/1979">111 STAT. 1979</page> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> <p xmlns="http://schemas.gpo.gov/xml/uslm" role="title" class="centered"><b>Defense Agencies: Inside the United States</b>—Continued</p> </caption> <thead> <tr> <th style="text-align:center; border-left:1px solid black; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Agency</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Installation or Location</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Amount</th> </tr> </thead> <tbody> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black"/> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fort Detrick, Maryland</td> <td style="text-align:right; border-right:1px solid black">$4,650,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black"/> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fort Lewis, Washington</td> <td style="text-align:right; border-right:1px solid black">$5,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black"/> <td style="text-align:left; border-right:1px solid black" leaders="yes">Hill Air Force Base, Utah</td> <td style="text-align:right; border-right:1px solid black">$3,100,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black"/> <td style="text-align:left; border-right:1px solid black" leaders="yes">Holloman Air Force Base, New Mexico</td> <td style="text-align:right; border-right:1px solid black">$3,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black"/> <td style="text-align:left; border-right:1px solid black" leaders="yes">Lackland Air Force Base, Texas</td> <td style="text-align:right; border-right:1px solid black">$3,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black"/> <td style="text-align:left; border-right:1px solid black" leaders="yes">Marine Corps Combat Development Command, Quantico, Virginia</td> <td style="text-align:right; border-right:1px solid black">$19,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black"/> <td style="text-align:left; border-right:1px solid black" leaders="yes">McGuire Air Force Base, New Jersey</td> <td style="text-align:right; border-right:1px solid black">$35,217,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black"/> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Air Station, Pensacola, Florida</td> <td style="text-align:right; border-right:1px solid black">$2,750,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black"/> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Station, Everett, Washington</td> <td style="text-align:right; border-right:1px solid black">$7,500,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black"/> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Station, San Diego, California</td> <td style="text-align:right; border-right:1px solid black">$2,100,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black"/> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Submarine Base, New London. Connecticut</td> <td style="text-align:right; border-right:1px solid black">$2,300,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black"/> <td style="text-align:left; border-right:1px solid black" leaders="yes">Robins Air Force Base, Georgia</td> <td style="text-align:right; border-right:1px solid black">$19,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black"/> <td style="text-align:left; border-right:1px solid black" leaders="yes">Wright-Patterson Air Force Base, Ohio</td> <td style="text-align:right; border-right:1px solid black">$2,750,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">National Security Agency</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fort Meade, Maryland</td> <td style="text-align:right; border-right:1px solid black">$29,700,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Special Operations Command</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Eglin Auxiliary Field 9, Florida</td> <td style="text-align:right; border-right:1px solid black">$8,550,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black"/> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fort Benning, Georgia</td> <td style="text-align:right; border-right:1px solid black">$12,314,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black"/> <td style="text-align:left; border-right:1px solid black" leaders="yes">Fort Bragg, North Carolina</td> <td style="text-align:right; border-right:1px solid black">$9,800,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black"/> <td style="text-align:left; border-right:1px solid black" leaders="yes">Mississippi Army Ammunition Plant, Mississippi</td> <td style="text-align:right; border-right:1px solid black">$9,900,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black"/> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Station, Pearl Harbor, Hawaii</td> <td style="text-align:right; border-right:1px solid black">$7,400,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black"/> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Amphibious Base, Coronado, California</td> <td style="text-align:right; border-right:1px solid black">$7,400,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black; border-bottom:1px solid black" /> <td style="text-align:right; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Total</td> <td style="text-align:right; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">$407,890,000</td> </tr> </tbody> </table> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Outside the United States</inline>.—</heading><content>Using amounts appropriated pursuant to the authorization of appropriations in section 2405(a)(2), the Secretary of Defense may acquire real property and carry out military construction projects for the installation and location outside the United States, and in the amount, set forth in the following table: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> <p xmlns="http://schemas.gpo.gov/xml/uslm" role="title" class="centered"><b>Defense Agencies: Outside the United States</b></p> </caption> <thead> <tr> <th style="text-align:center; border-left:1px solid black; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Agency</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Installation or Location</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Amount</th> </tr> </thead> <tbody> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Defense Logistics Agency</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Defense Fuel Support Point, Guam</td> <td style="text-align:right; border-right:1px solid black">$16,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black; border-bottom:1px solid black" /> <td style="text-align:right; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Total</td> <td style="text-align:right; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">$16,000,000</td> </tr> </tbody> </table> </content></subsection> </section> <section> <num value="2402">SEC. 2402. </num><heading>MILITARY HOUSING PLANNING AND DESIGN.</heading> <content>Using amounts appropriated pursuant to the authorization of appropriations in section 2405(a)(13)(A), the Secretary of Defense may carry out architectural and engineering services and construction design activities with respect to the construction or improvement of military family housing units in an amount not to exceed $50,000.<page identifier="/us/stat/111/1980">111 STAT. 1980</page></content> </section> <section> <num value="2403">SEC. 2403. </num><heading>IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.</heading> <content>Subject to section 2825 of title 10, United States Code, and using amounts appropriated pursuant to the authorization of appropriation in section 2405(a)(13)(A), the Secretary of Defense may improve existing military family housing units in an amount not to exceed $4,900,000.</content> </section> <section> <num value="2404">SEC. 2404. </num><heading>ENERGY CONSERVATION PROJECTS.</heading> <content>Using amounts appropriated pursuant to the authorization of appropriations in section 2405(a)(11), the Secretary of Defense may carry out energy conservation projects under section 2865 of title 10, United States Code.</content> </section> <section> <num value="2405">SEC. 2405. </num><heading>AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Funds are hereby authorized to be appropriated for fiscal years beginning after September 30, 1997, for military construction, land acquisition, and military family housing functions of the Department of Defense (other than the military departments), in the total amount of $2,743,670,000 as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>For military construction projects inside the United States authorized by section 2401(a), $407,890,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>For military construction projects outside the United States authorized by section 2401(b), $16,000,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>For military construction projects at Anniston Army Depot, Alabama, ammunition demilitarization facility, authorized by section 2101(a) of the Military Construction Authorization Act for Fiscal Year 1993 (division B of the Public Law 102–484; 106 Stat. 2587), which was originally authorized as an Army construction project, but which became a Defense Agencies construction project by reason of the amendments made by section 142 of the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103–337; 108 Stat. 2689), $9,900,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>For military construction projects at Walter Reed Army Institute of Research, Maryland, hospital replacement, authorized by section 2401(a) of the Military Construction Authorization Act for Fiscal Year 1993 (division B of Public Law 102–484; 106 Stat. 2599), $20,000,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>For military construction projects at Umatilla Army Depot, Oregon, authorized by section 2401(a) of the Military Construction Authorization Act for Fiscal Year 1995 (division B of the Public Law 103–337; 108 Stat. 3040), as amended by section 2407 of the Military Construction Authorization Act for Fiscal Year 1996 (division B of Public Law 104–106; 110 Stat. 539) and section 2408(2) of this Act, $57,427,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>For military construction projects at Defense Finance and Accounting Service, Columbus, Ohio, authorized by section 2401(a) of the Military Construction Authorization Act of Fiscal Year 1996 (division B of Public Law 104–106; 110 Stat. 535), $14,200,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>For military construction projects at Naval Hospital, Portsmouth, Virginia, hospital replacement, authorized by section 2401(a) of the Military Construction Authorization Act for Fiscal Years 1990 and 1991 (division B of Public Law 101–189; 103 Stat. 1640), $17,000,000.<page identifier="/us/stat/111/1981">111 STAT. 1981</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>For contingency construction projects of the Secretary of Defense under section 2804 of title 10, United States Code, $4,000,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><content>For unspecified minor construction projects under section 2805 of title 10, United States Code, $26,075,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10) </num><content>For architectural and engineering services and construction design under section 2807 of title 10, United States Code, $48,850,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="11">(11) </num><content>For energy conservation projects authorized by section 2404, $25,000,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="12">(12) </num><content>For base closure and realignment activities as authorized by the Defense Base Closure and Realignment Act of 1990 (part A of title XXIX of Public Law 101–510; 10 U.S.C. 2687 note), $2,060,854,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="13">(13) </num><chapeau>For military family housing functions:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>For improvement and planning of military family housing and facilities, $4,950,000.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>For support of military housing (including functions described in section 2833 of title 10, United States Code), $32,724,000 of which not more than $27,673,000 may be obligated or expended for the leasing of military family housing units worldwide.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Limitation of Total Cost of Construction Projects</inline>.—</heading><content>Notwithstanding the cost variation authorized by section 2853 of title 10, United States Code, and any other cost variations authorized by law, the total cost of all projects carried out under section 2401 of this Act may not exceed the total amount authorized to be appropriated under paragraphs (1) and (2) of subsection (a).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Adjustment</inline>.—</heading><content>The total amount authorized to be appropriated pursuant to paragraphs (1) through (13) of subsection (a) is the sum of the amounts authorized to be appropriated in such paragraphs, reduced by $1,200,000, which represents the combination of savings resulting from adjustments to foreign currency exchange rates for military construction projects and the support of military family housing outside the United States.</content> </subsection> </section> <section> <num value="2406">SEC. 2406. </num><heading>CLARIFICATION OF AUTHORITY RELATING TO FISCAL YEAR 1997 PROJECT AT NAVAL STATION, PEARL HARBOR, HAWAII.</heading> <content>The table in section 2401(a) of the Military Construction Authorization Act for Fiscal Year 1997 (division B of Public Law 104–201; 110 Stat. 2775) is amended in the item relating to Special Operations Command, Naval Station, Ford Island, Pearl Harbor, Hawaii, in the installation or location column by striking out “Naval Station, Ford Island, Pearl Harbor, Hawaii” and inserting in lieu thereof “Naval Station, Pearl Harbor, Hawaii”.</content> </section> <section> <num value="2407">SEC. 2407. </num><heading>CORRECTION IN AUTHORIZED USES OF FUNDS, MCCLELLAN AIR FORCE BASE, CALIFORNIA.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Authority To Use Prior Year Funds</inline>.—</heading><content>The Secretary of Defense may carry out the military construction projects referred to in subsection (b), in the amounts specified in that subsection, using amounts appropriated pursuant to the authorization of appropriations in section 2405(a)(1) of the Military Construction Authorization Act for Fiscal Year 1995 (division B of Public Law 103–337; 108 Stat. 3042) for a military construction project involving the upgrade of the hospital facility at McClellan Air Force <page identifier="/us/stat/111/1982">111 STAT. 1982</page>Base, California, as authorized by section 2401 of such Act (108 Stat. 3040).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Covered Projects</inline>.—</heading><chapeau>Funds available under subsection (a) may be used for military construction projects as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Construction of an addition to the Aeromedical Clinic at Anderson Air Base, Guam, $3,700,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Construction of an occupational health clinic facility at Tinker Air Force Base, Oklahoma, $6,500,000.</content></paragraph> </subsection> </section> <section> <num value="2408">SEC. 2408. </num><heading>MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 1995 PROJECTS.</heading> <chapeau>The table in section 2401 of the Military Construction Authorization Act for Fiscal Year 1995 (division B of Public Law 103–337; 108 Stat. 3040), as amended by section 2407 of the Military Construction Authorization Act for Fiscal Year 1996 (division B of Public Law 104–106; 110 Stat. 539), under the agency heading relating to Chemical Weapons and Munitions Destruction, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in the item relating to Pine Bluff Arsenal, Arkansas, by striking out “$115,000,000” in the amount column and inserting in lieu thereof “$134,000,000”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in the item relating to Umatilla Army Depot, Oregon, by striking out “$186,000,000” in the amount column and inserting in lieu thereof “$187,000,000”.</content></paragraph> </section> <num value="XXV">TITLE XXV—</num><heading>NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT PROGRAM</heading> <toc> <referenceItem role="section"><designator>Sec. 2501.</designator> <label>Authorized NATO construction and land acquisition projects.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2502.</designator> <label>Authorization of appropriations, NATO.</label></referenceItem> </toc> <section> <num value="2501">SEC. 2501. </num><heading>AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION PROJECTS.</heading> <content>The Secretary of Defense may make contributions for the North Atlantic Treaty Organization Security Investment program as provided in section 2806 of title 10, United States Code, in an amount not to exceed the sum of the amount authorized to be appropriated for this purpose in section 2502 and the amount collected from the North Atlantic Treaty Organization as a result of construction previously financed by the United States.</content> </section> <section> <num value="2502">SEC. 2502. </num><heading>AUTHORIZATION OF APPROPRIATIONS, NATO.</heading> <content>Funds are hereby authorized to be appropriated for fiscal years beginning after September 30, 1997, for contributions by the Secretary of Defense under section 2806 of title 10, United States Code, for the share of the United States of the cost of projects for the North Atlantic Treaty Organization Security Investment program authorized by section 2501, in the amount of $152,600,000.<page identifier="/us/stat/111/1983">111 STAT. 1983</page></content> </section> <num value="XXVI">TITLE XXVI—</num><heading>GUARD AND RESERVE FORCES FACILITIES</heading> <toc> <referenceItem role="section"><designator>Sec. 2601.</designator> <label>Authorized Guard and Reserve construction and land acquisition projects.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2602.</designator> <label>Authorization of military construction projects for which funds have been appropriated.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2603.</designator> <label>Army Reserve construction project. Camp Williams, Utah.</label></referenceItem> </toc> <section> <num value="2601">SEC. 2601. </num><heading>AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND ACQUISITION PROJECTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>There are authorized to be appropriated for fiscal years beginning after September 30, 1997, for the costs of acquisition, architectural and engineering services, and construction of facilities for the Guard and Reserve Forces, and for contributions therefor, under chapter 1803 of title 10, United States Code (including the cost of acquisition of land for those facilities), the following amounts:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>For the Department of the Army—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>for the Army National Guard of the United States, $113,750,000; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>for the Army Reserve, $66,267,000.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>For the Department of the Navy, for the Naval and Marine Corps Reserve, $47,329,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><chapeau>For the Department of the Air Force—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>for the Air National Guard of the United States, $190,444,000; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>for the Air Force Reserve, $30,243,000.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Adjustment</inline>.—</heading><content>The amount authorized to be appropriated pursuant to subsection (a)(1)(B) is reduced by $7,900,000, which represents the combination of project savings in military construction resulting from favorable bids, reduced overhead costs, and cancellations due to force structure changes.</content> </subsection> </section> <section> <num value="2602">SEC. 2602. </num><heading>AUTHORIZATION OF MILITARY CONSTRUCTION PROJECTS FOR WHICH FUNDS HAVE BEEN APPROPRIATED.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Army National Guard, Hilo, Hawaii</inline>.—</heading><content>Paragraph (1)(A) of section 2601 of the Military Construction Authorization Act for Fiscal Year 1997 (division B of Public Law 104–201; 110 Stat. 2780) is amended by striking out “$59,194,000” and inserting in lieu thereof “$65,094,000” to account for a project involving additions and alterations to an Army aviation support facility in Hilo, Hawaii.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Naval and Marine Corps Reserve, New Orleans</inline>.—</heading><content>Paragraph (2) of such section is amended by striking out “$32,779,000” and inserting in lieu thereof “$37,579,000” to account for a project for the construction of a bachelor enlisted quarters at Naval Air Station, New Orleans, Louisiana.</content> </subsection> </section> <section> <num value="2603">SEC. 2603. </num><heading>ARMY RESERVE CONSTRUCTION PROJECT, CAMP WILLIAMS, UTAH.</heading> <content>With regard to the military construction project for the Army Reserve concerning construction of a reserve center and organizational maintenance shop at Camp Williams, Utah, to be carried out using funds appropriated pursuant to the authorization of appropriations in section 2601(a)(1)(B), the Secretary of the Army shall enter into an agreement with the State of Utah under which the State agrees to provide financial or in-kind contributions toward <page identifier="/us/stat/111/1984">111 STAT. 1984</page>land acquisition, site preparation, and relocation costs in connection with the project.</content> </section> <num value="XXVII">TITLE XXVII—</num><heading>EXPIRATION AND EXTENSION OF AUTHORIZATIONS</heading> <toc> <referenceItem role="section"><designator>Sec. 2701.</designator> <label>Expiration of authorizations and amounts required to be specified by law.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2702.</designator> <label>Extension of authorizations of certain fiscal year 1995 projects.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2703.</designator> <label>Extension of authorizations of certain fiscal year 1994 projects.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2704.</designator> <label>Extension of authorizations of certain fiscal year 1993 projects.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2705.</designator> <label>Extension of authorizations of certain fiscal year 1992 projects.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2706.</designator> <label>Extension of availability of funds for construction of relocatable over-the-horizon radar, Naval Station Roosevelt Roads, Puerto Rico.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2707.</designator> <label>Effective date.</label></referenceItem> </toc> <section> <num value="2701">SEC. 2701. </num><heading>EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED TO BE SPECIFIED BY LAW.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Expiration of Authorizations After Three Years</inline>.—</heading><chapeau>Except as provided in subsection (b), all authorizations contained in titles XXI through XXVI for military construction projects, land acquisition, family housing projects and facilities, and contributions to the North Atlantic Treaty Organization Security Investment program (and authorizations of appropriations therefor) shall expire on the later of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>October 1, 2000; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the date of the enactment of an Act authorizing funds for military construction for fiscal year 2001.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Exception</inline>.—</heading><chapeau>Subsection (a) shall not apply to authorizations for military construction projects, land acquisition, family housing projects and facilities, and contributions to the North Atlantic Treaty Organization Security Investment program (and authorizations of appropriations therefor), for which appropriated funds have been obligated before the later of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>October 1, 2000; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the date of the enactment of an Act authorizing funds for fiscal year 2001 for military construction projects, land acquisition, family housing projects and facilities, or contributions to the North Atlantic Treaty Organization Security Investment program.</content></paragraph> </subsection> </section> <section> <num value="2702">SEC. 2702. </num><heading>EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1995 PROJECTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Extension</inline>.—</heading><content>Notwithstanding section 2701 of the Military Construction Authorization Act for Fiscal Year 1995 (division B of Public Law 103–337; 108 Stat. 3046), authorizations for the projects set forth in the tables in subsection (b), as provided in section 2101, 2201, 2202, 2301, 2302, 2401, or 2601 of such Act, shall remain in effect until October 1, 1998, or the date of the enactment of an Act authorizing funds for military construction for fiscal year 1999, whichever is later.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Tables</inline>.—</heading><content>The tables referred to in subsection (a) are as follows:<page identifier="/us/stat/111/1985">111 STAT. 1985</page> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> <p xmlns="http://schemas.gpo.gov/xml/uslm" role="title" class="centered"><b>Army: Extension of 1995 Project Authorization</b></p> </caption> <thead> <tr> <th style="text-align:center; border-left:1px solid black; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">State</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Installation or Location</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Purpose</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Amount</th> </tr> </thead> <tbody> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">California</td> <td style="text-align:left; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Fort Irwin</td> <td style="text-align:left; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">National Training Center Airfield Phase I</td> <td style="text-align:right; border-right:1px solid black; border-bottom:1px solid black">$10,000,000</td> </tr> </tbody> </table> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> <p xmlns="http://schemas.gpo.gov/xml/uslm" role="title" class="centered"><b>Navy: Extension of 1995 Project Authorizations</b></p> </caption> <thead> <tr> <th style="text-align:center; border-left:1px solid black; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">State</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Installation or Location</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Purpose</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Amount</th> </tr> </thead> <tbody> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Maryland</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Indian Head Naval Surface Warfare Center</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Upgrade Power Plant</td> <td style="text-align:right; border-right:1px solid black">$4,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Indian Head Naval Surface Warfare Center</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Denitrification/Acid Mixing Facility</td> <td style="text-align:right; border-right:1px solid black">$6,400,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Virginia</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Norfolk Marine Corps Security Force Battalion Atlantic</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Bachelor Enlisted Quarters</td> <td style="text-align:right; border-right:1px solid black">$6,480,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Washington</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Naval Station, Everett</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">New Construction (Housing Office)</td> <td style="text-align:right; border-right:1px solid black">$780,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">CONUS Classified</td> <td style="text-align:left; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Classified Location</td> <td style="text-align:left; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Aircraft Fire and Rescue and Vehicle Maintenance Facilities</td> <td style="text-align:right; border-right:1px solid black; border-bottom:1px solid black">$2,200,000</td> </tr> </tbody> </table> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> <p xmlns="http://schemas.gpo.gov/xml/uslm" role="title" class="centered"><b>Air Force: Extension of 1995 Project Authorizations</b></p> </caption> <thead> <tr> <th style="text-align:center; border-left:1px solid black; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">State</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Installation or Location</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Purpose</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Amount</th> </tr> </thead> <tbody> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">California</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Beale Air Force Base</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Consolidated Support Center</td> <td style="text-align:right; border-right:1px solid black">$10,400,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Los Angeles Air Force Station</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Family Housing (50 units)</td> <td style="text-align:right; border-right:1px solid black">$8,962,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">North Carolina</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Pope Air Force Base</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Combat Control Team Facility</td> <td style="text-align:right; border-right:1px solid black">$2,450,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black; border-bottom:1px solid black" /> <td style="text-align:left; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Pope Air Force Base</td> <td style="text-align:left; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Fire Training Facility</td> <td style="text-align:right; border-right:1px solid black; border-bottom:1px solid black">$1,100,000</td> </tr> </tbody> </table> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> <p xmlns="http://schemas.gpo.gov/xml/uslm" role="title" class="centered"><b>Defense Agencies: Extension of 1995 Project Authorizations</b></p> </caption> <thead> <tr> <th style="text-align:center; border-left:1px solid black; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">State</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Installation or Location</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Purpose</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Amount</th> </tr> </thead> <tbody> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Alabama</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Anniston Army Depot</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Carbon Filtration System</td> <td style="text-align:right; border-right:1px solid black">$5,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Arkansas</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Pine Bluff Arsenal</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Ammunition Demilitarization Facility</td> <td style="text-align:right; border-right:1px solid black">$115,000,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">California</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Defense Contract Management Area Office, El Segundo</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Administrative Buildirg</td> <td style="text-align:right; border-right:1px solid blac">$5,100,000</td> </tr> </tbody> </table> <page identifier="/us/stat/111/1986">111 STAT. 1986</page> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> <p xmlns="http://schemas.gpo.gov/xml/uslm" role="title" class="centered"><b>Defense Agencies: Extension of 1995 Project Authorizations</b>—Continued</p> </caption> <thead> <tr> <th style="text-align:center; border-left:1px solid black; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">State</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Installation or Location</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Purpose</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Amount</th> </tr> </thead> <tbody> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Oregon</td> <td style="text-align:left; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Umatilla Army Depot</td> <td style="text-align:left; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Ammunition Demilitarization Facility</td> <td style="text-align:right; border-right:1px solid black; border-bottom:1px solid black">$186,000,000</td> </tr> </tbody> </table> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> <p xmlns="http://schemas.gpo.gov/xml/uslm" role="title" class="centered"><b>Army National Guard: Extension of 1995 Project Authorizations</b></p> </caption> <thead> <tr> <th style="text-align:center; border-left:1px solid black; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">State</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Installation or Location</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Purpose</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Amount</th> </tr> </thead> <tbody> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">California</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Camp Roberts</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Modify Record Fire/Maintenance Shop</td> <td style="text-align:right; border-right:1px solid black">$3,910,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" /> <td style="text-align:left; border-right:1px solid black" leaders="yes">Camp Roberts</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Combat Pistol Range</td> <td style="text-align:right; border-right:1px solid black">$952,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Pennsylvania</td> <td style="text-align:left; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Fort Indiantown Gap</td> <td style="text-align:left; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Barracks</td> <td style="text-align:right; border-right:1px solid black; border-bottom:1px solid black">$6,200,000</td> </tr> </tbody> </table> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> <p xmlns="http://schemas.gpo.gov/xml/uslm" role="title" class="centered"><b>Naval Reserve: Extension of 1995 Project Authorization</b></p> </caption> <thead> <tr> <th style="text-align:center; border-left:1px solid black; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">State</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Installation or Location</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Purpose</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Amount</th> </tr> </thead> <tbody> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Georgia</td> <td style="text-align:left; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Naval Air Station Marietta</td> <td style="text-align:left; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Training Center</td> <td style="text-align:right; border-right:1px solid black; border-bottom:1px solid black">$2,650,000</td> </tr> </tbody> </table> </content></subsection> </section> <section> <num value="2703">SEC. 2703. </num><heading>EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1994 PROJECTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Extension</inline>.—</heading><content>Notwithstanding section 2701 of the Military Construction Authorization Act for Fiscal Year 1994 (division B of Public Law 103–160, 107 Stat. 1880), authorizations for the projects set forth in the tables in subsection (b), as provided in section 2201 or 2601 of such Act and extended by section 2702 of the Military Construction Authorization Act for Fiscal Year 1997 (division B of Public Law 104–201; 110 Stat. 2783), shall remain in effect until October 1, 1998, or the date of the enactment of an Act authorizing funds for military construction for fiscal year 1999, whichever is later.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Tables</inline>.—</heading><content>The tables referred to in subsection (a) are as follows: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> <p xmlns="http://schemas.gpo.gov/xml/uslm" role="title" class="centered"><b>Navy: Extension of 1994 Project Authorizations</b></p> </caption> <thead> <tr> <th style="text-align:center; border-left:1px solid black; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">State</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Installation or Location</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Purpose</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Amount</th> </tr> </thead> <tbody> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">California</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Camp Pendleton Marine Corps Base</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Sewage Facility Hazardous</td> <td style="text-align:right; border-right:1px solid black">$7,930,000</td> </tr> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black; border-bottom:1px solid black">Connecticut</td> <td style="text-align:left; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">New London Naval Submarine Base</td> <td style="text-align:left; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Waste Transfer Facility</td> <td style="text-align:right; border-right:1px solid black; border-bottom:1px solid black">$1,450,000</td> </tr> </tbody> </table> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> <p xmlns="http://schemas.gpo.gov/xml/uslm" role="title" class="centered"><b>Army National Guard: Extension of 1994 Project Authorization</b></p> </caption> <thead> <tr> <th style="text-align:center; border-left:1px solid black; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">State</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Installation or Location</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Purpose</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Amount</th> </tr> </thead> <tbody> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">New Mexico</td> <td style="text-align:left; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">White Sands Missile Range</td> <td style="text-align:left; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">MATES</td> <td style="text-align:right; border-right:1px solid black; border-bottom:1px solid black">$3,570,000</td> </tr> </tbody> </table> <page identifier="/us/stat/111/1987">111 STAT. 1987</page> </content></subsection> </section> <section> <num value="2704">SEC. 2704. </num><heading>EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1993 PROJECTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Extension</inline>.—</heading><content>Notwithstanding section 2701 of the Military Construction Authorization Act for Fiscal Year 1993 (division B of Public Law 102–484; 106 Stat. 2602), the authorizations for the projects set forth in the tables in subsection (b), as provided in section 2101 or 2601 of such Act and extended by section 2702 of the Military Construction Authorization Act for Fiscal Year 1996 (division B of Public Law 104–106; 110 Stat. 541) and section 2703 of the Military Construction Authorization Act for Fiscal Year 1997 (division B of Public Law 104–201; 110 Stat. 2784), shall remain in effect until October 1, 1998, or the date of the enactment of an Act authorizing funds for military construction for fiscal year 1999, whichever is later.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Tables</inline>.—</heading><content>The tables referred to in subsection (a) are as follows: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> <p xmlns="http://schemas.gpo.gov/xml/uslm" role="title" class="centered"><b>Army: Extension of 1993 Project Authorization</b></p> </caption> <thead> <tr> <th style="text-align:center; border-left:1px solid black; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">State</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Installation or Location</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Purpose</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Amount</th> </tr> </thead> <tbody> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Arkansas</td> <td style="text-align:left; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Pine Bluff Arsenal</td> <td style="text-align:left; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Ammunition Demilitarization Support Facility</td> <td style="text-align:right; border-right:1px solid black; border-bottom:1px solid black">$15,000,000</td> </tr> </tbody> </table> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> <p xmlns="http://schemas.gpo.gov/xml/uslm" role="title" class="centered"><b>Army National Guard: Extension of 1993 Project Authorization</b></p> </caption> <thead> <tr> <th style="text-align:center; border-left:1px solid black; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">State</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Installation or Location</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Purpose</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Amount</th> </tr> </thead> <tbody> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Alabama</td> <td style="text-align:left; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Union Springs</td> <td style="text-align:left; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Armory</td> <td style="text-align:right; border-right:1px solid black; border-bottom:1px solid black">$813,000</td> </tr> </tbody> </table> </content></subsection> </section> <section> <num value="2705">SEC. 2705. </num><heading>EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1992 PROJECTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Extension</inline>.—</heading><content>Notwithstanding section 2701 of the Military Construction Authorization Act for Fiscal Year 1992 (division B of Public Law 102–190; 105 Stat. 1535), authorizations for the projects set forth in the table in subsection (b), as provided in section 2101 of such Act and extended by section 2702 of the Military Construction Authorization Act for Fiscal Year 1995 (division B of Public Law 103–337; 108 Stat. 3047), section 2703 of the Military Construction Authorization Act for Fiscal Year 1996 (division B of Public Law 104–106; 110 Stat. 543), and section 2704 of the Military Construction Authorization Act for Fiscal Year 1997 (division B of Public Law 104–201; 110 Stat. 2785), shall remain in effect until October 1, 1998, or the date of the enactment of an Act authorizing funds for military construction for fiscal year 1999, whichever is later.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Table</inline>.—</heading><content>The table referred to in subsection (a) is as follows: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> <p xmlns="http://schemas.gpo.gov/xml/uslm" role="title" class="centered"><b>Army: Extension of 1992 Project Authorizations</b></p> </caption> <thead> <tr> <th style="text-align:center; border-left:1px solid black; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">State</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Installation or Location</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Purpose</th> <th style="text-align:center; border-right:1px solid black; border-top:1px solid black; border-bottom:1px solid black">Amount</th> </tr> </thead> <tbody> <tr> <td style="text-align:left; border-left:1px solid black; border-right:1px solid black" leaders="yes">Oregon</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Umatilla Army Depot</td> <td style="text-align:left; border-right:1px solid black" leaders="yes">Ammunition Demilitarization Support Facility</td> <td style="text-align:right; border-right:1px solid black">$3,600,000</td> </tr> <tr> <td style="text-align:center; border-left:1px solid black; border-right:1px solid black; border-bottom:1px solid black" /> <td style="text-align:left; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Umatilla Army Depot</td> <td style="text-align:left; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">Ammunition Demilitarization Utilities</td> <td style="text-align:right; border-right:1px solid black; border-bottom:1px solid black" leaders="yes">$7,500,000</td> </tr> </tbody> </table> <page identifier="/us/stat/111/1988">111 STAT. 1988</page> </content></subsection> </section> <section> <num value="2706">SEC. 2706. </num><heading>EXTENSION OF AVAILABILITY OF FUNDS FOR CONSTRUCTION OF RELOCATABLE OVER-THE-HORIZON RADAR, NAVAL STATION ROOSEVELT ROADS, PUERTO RICO.</heading> <chapeau>Amounts appropriated under the heading “<inline class="smallCaps">Drug Interdiction and Counter-Drug Activities, Defense</inline>” in title VI of the Department of Defense Appropriations Act, 1995 (Public Law 103–335; 108 Stat. 2615), and transferred to the “Military Construction, Navy” appropriation for construction of a relocatable over-the-horizon radar at Naval Station Roosevelt Roads, Puerto Rico, shall remain available for that purpose until the later of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>October 1, 1998; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the date of enactment of an Act authorizing funds for military construction for fiscal year 1999.</content></paragraph> </section> <section> <num value="2707">SEC. 2707. </num><heading>EFFECTIVE DATE.</heading> <chapeau>Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI shall take effect on the later of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>October 1, 1997; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the date of the enactment of this Act.</content></paragraph> </section> <num value="XXVIII">TITLE XXVIII—</num><heading>GENERAL PROVISIONS</heading> <toc> <referenceItem role="subtitle"><designator>Subtitle A—</designator><label>Military Construction Program and Military Family Housing Changes</label></referenceItem> <referenceItem role="section"><designator>Sec. 2801.</designator> <label>Use of mobility enhancement funds for unspecified minor construction.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2802.</designator> <label>Limitation on use of operation and maintenance funds for facility repair projects.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2803.</designator> <label>Leasing of military family housing, United States Southern Command, Miami, Florida.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2804.</designator> <label>Use of financial incentives provided as part of energy savings and water conservation activities.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2805.</designator> <label>Congressional notification requirements regarding use of Department of Defense housing funds for investments in nongovernmental entities.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle B—</designator><label>Real Property and Facilities Administration</label></referenceItem> <referenceItem role="section"><designator>Sec. 2811.</designator> <label>Increase in ceiling for minor land acquisition projects.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2812.</designator> <label>Permanent authority regarding conveyance of utility systems.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2813.</designator> <label>Administrative expenses for certain real property transactions.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2814.</designator> <label>Screening of real property to be conveyed by Department of Defense.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2815.</designator> <label>Disposition of proceeds from sale of Air Force Plant 78, Brigham City, Utah.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2816.</designator> <label>Fire protection and hazardous materials protection at Fort Meade, Maryland.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle C—</designator><label>Defense Base Closure and Realignment</label></referenceItem> <referenceItem role="section"><designator>Sec. 2821.</designator> <label>Consideration of military installations as sites for new Federal facilities.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2822.</designator> <label>Adjustment and diversification assistance to enhance performance of military family support services by private sector sources.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2823.</designator> <label>Security, fire protection, and other services at property formerly associated with Red River Army Depot, Texas.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2824.</designator> <label>Report on closure and realignment of military installations.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2825.</designator> <label>Sense of Senate regarding utilization of savings derived from base closure process.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2826.</designator> <label>Prohibition against certain conveyances of property at Naval Station, Long Beach, California.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle D—</designator><label>Land Conveyances</label></referenceItem> <referenceItem role="part"><designator>Part I—</designator><label>Army Conveyances</label></referenceItem> <referenceItem role="section"><designator>Sec. 2831.</designator> <label>Land conveyance, Army Reserve Center, Greensboro, Alabama.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2832.</designator> <label>Land conveyance, James T. Coker Army Reserve Center, Durant, Oklahoma.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2833.</designator> <label>Land conveyance, Gibson Army Reserve Center, Chicago, Illinois.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2834.</designator> <label>Land conveyance, Fort A. P. Hill, Virginia.<page identifier="/us/stat/111/1989">111 STAT. 1989</page></label></referenceItem> <referenceItem role="section"><designator>Sec. 2835.</designator> <label>Land conveyances, Fort Dix, New Jersey.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2836.</designator> <label>Land conveyances, Fort Bragg, North Carolina.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2837.</designator> <label>Land conveyance, Hawthorne Army Ammunition Depot, Mineral County, Nevada.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2838.</designator> <label>Expansion of land conveyance authority, Indiana Army Ammunition Plant, Charlestown, Indiana.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2839.</designator> <label>Modification of land conveyance, Lompoc, California.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2840.</designator> <label>Modification of land conveyance, Rocky Mountain Arsenal, Colorado.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2841.</designator> <label>Correction of land conveyance authority, Army Reserve Center, Anderson, South Carolina.</label></referenceItem> <referenceItem role="part"><designator>Part II—</designator><label>Navy Conveyances</label></referenceItem> <referenceItem role="section"><designator>Sec. 2851.</designator> <label>Land conveyance, Topsham Annex, Naval Air Station, Brunswick, Maine.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2852.</designator> <label>Land conveyance. Naval Weapons Industrial Reserve Plant No. 464, Oyster Bay, New York.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2853.</designator> <label>Correction of lease authority, Naval Air Station, Meridian, Mississippi.</label></referenceItem> <referenceItem role="part"><designator>Part III—</designator><label>Air Force Conveyances</label></referenceItem> <referenceItem role="section"><designator>Sec. 2861.</designator> <label>Land transfer, Eglin Air Force Base, Florida.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2862.</designator> <label>Land conveyance, March Air Force Base, California.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2863.</designator> <label>Land conveyance, Ellsworth Air Force Base, South Dakota.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2864.</designator> <label>Land conveyance, Hancock Field, Syracuse, New York.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2865.</designator> <label>Land conveyance, Havre Air Force Station, Montana, and Havre Training Site, Montana.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2866.</designator> <label>Land conveyance. Charleston Family Housing Complex, Bangor, Maine.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2867.</designator> <label>Study of land exchange options, Shaw Air Force Base, South Carolina.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle E—</designator><label>Other Matters</label></referenceItem> <referenceItem role="section"><designator>Sec. 2871.</designator> <label>Repeal of requirement to operate Naval Academy dairy farm.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2872.</designator> <label>Long-term lease of property, Naples, Italy.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2873.</designator> <label>Designation of military family housing at Lackland Air Force Base, Texas, in honor of Frank Tejeda, a former Member of the House of Representatives.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2874.</designator> <label>Fiber-optics based telecommunications linkage of military installations.</label></referenceItem> </toc> <subtitle> <num value="A">Subtitle A—</num><heading>Military Construction Program and Military Family Housing Changes</heading> <section> <num value="2801">SEC. 2801. </num><heading>USE OF MOBILITY ENHANCEMENT FUNDS FOR UNSPECIFIED MINOR CONSTRUCTION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Congressional Notification</inline>.—</heading><content>Subsection (b)(1) of section 2805 of title 10, United States Code, is amended by adding at the end the following new sentence: “This paragraph shall apply<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> even though the project is to be carried out using funds made available to enhance the deployment and mobility of military forces and supplies.”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Restriction on Use of Operation and Maintenance Funds</inline>.—</heading><chapeau>Subsection (c) of such section is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in paragraph (1), by striking out “paragraph (2)” and inserting in lieu thereof “paragraphs (2) and (3)”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>The limitations specified in paragraph (1) shall not apply to an unspecified minor military construction project if the project is to be carried out using funds made available to enhance the deployment and mobility of military forces and supplies.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Technical Amendments</inline>.—</heading><chapeau>Such section is further amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>in subsection (a)(1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking out “minor military construction projects” in the first sentence and inserting in lieu thereof “unspecified minor military construction projects”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking out “A minor” in the second sentence and inserting in lieu thereof “An unspecified minor”; and<page identifier="/us/stat/111/1990">111 STAT. 1990</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>by striking out “a minor” in the last sentence and inserting in lieu thereof “an unspecified minor”;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in subsection (b)(1), by striking out “A minor” and inserting in lieu thereof “An unspecified minor”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>in subsection (b)(2), by striking out “a minor” and inserting in lieu thereof “an unspecified minor”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>in subsection (c), by striking out “unspecified military” each place it appears and inserting in lieu thereof “unspecified minor military”.</content></paragraph> </subsection> </section> <section> <num value="2802">SEC. 2802. </num><heading>LIMITATION ON USE OF OPERATION AND MAINTENANCE FUNDS FOR FACILITY REPAIR PROJECTS.</heading> <content>Section 2811 of title 10, United States Code, is amended by adding at the end the following new subsections: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote><heading><inline class="smallCaps">Congressional Notification</inline>.—</heading><chapeau>When a decision is made to carry out a repair project under this section with an estimated cost in excess of $10,000,000, the Secretary concerned shall submit to the appropriate committees of Congress a report containing—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>the justification for the repair project and the current estimate of the cost of the project; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>the justification for carrying out the project under this section.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Repair Project Defined</inline>.—</heading><content>In this section, the term ‘repair project’ means a project to restore a real property facility, system, or component to such a condition that it may effectively be used for its designated functional purpose ”.</content> </subsection> </quotedContent> </content></section> <section> <num value="2803">SEC. 2803. </num><heading>LEASING OF MILITARY FAMILY HOUSING, UNITED STATES SOUTHERN COMMAND, MIAMI, FLORIDA.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Leases To Exceed Maximum Rental</inline>.—</heading><chapeau>Section 2828(b) of title 10, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in paragraph (2), by striking out “paragraph (3)” and inserting in lieu thereof “paragraphs (3) and (4)”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by redesignating paragraph (4) as paragraph (5); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by inserting after paragraph (3) the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>The Secretary of the Army may lease not more than eight housing units in the vicinity of Miami, Florida, for key and essential personnel, as designated by the Secretary, for the United States Southern Command for which the expenditure for the rental of such units (including the cost of utilities, maintenance, and operation, including security enhancements) exceeds the expenditure limitations in paragraphs (2) and (3). The total amount for all leases under this paragraph may not exceed $280,000 per year, and no lease on any individual housing unit may exceed $60,000 per year.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>Paragraph (5) of such section, as redesignated by subsection (a)(2), is amended by striking out “paragraphs (2) and (3)” and inserting in lieu thereof “paragraphs (2), (3), and (4)”.</content> </subsection> </section> <section> <num value="2804">SEC. 2804. </num><heading>USE OF FINANCIAL INCENTIVES PROVIDED AS PART OF ENERGY SAVINGS AND WATER CONSERVATION ACTIVITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Energy Savings</inline>.—</heading><chapeau>Section 2865 of title 10, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>in subsection (b)—<page identifier="/us/stat/111/1991">111 STAT. 1991</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>in paragraph (1), by striking out “and financial incentives described in subsection (d)(2)”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>in paragraph (2), by striking out “section 2866(b)” both places it appears and inserting in lieu thereof “section 2866(a)(3)”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>Financial incentives received from gas or electric utilities under subsection (d)(2), and from utilities for management of water demand or water conservation under section 2866(a)(2) of this title, shall be credited to an appropriation designated by the Secretary of Defense. Amounts so credited shall be merged with the appropriation to which credited and shall be available for the same purposes and the same period as the appropriation with which merged.”; and</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in subsection (f), by adding at the end the following new sentence: “The Secretary shall also include in each report the types and amount of financial incentives received under subsection (d)(2) and section 2866(a)(2) of this title during the period covered by the report and the appropriation account or accounts to which the incentives were credited”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Water Conservation</inline>.—</heading><content>Section 2866(b) of such title is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Use of Financial Incentives and Water Cost Savings</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Financial incentives received under subsection (a)(2) shall be used as provided in section 2865(b)(3) of this title.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>Water cost savings realized under subsection (a)(3) shall be used as provided in section 2865(b)(2) of this title.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> </section> <section> <num value="2805">SEC. 2805. </num><heading>CONGRESSIONAL NOTIFICATION REQUIREMENTS REGARDING USE OF DEPARTMENT OF DEFENSE HOUSING FUNDS FOR INVESTMENTS IN NONGOVERNMENTAL ENTITIES.</heading> <content>Section 2875 of title 10, United States Code, is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><content>Congressional Notification Required.—Amounts in the Department of Defense Family Housing Improvement Fund or the Department of Defense Military Unaccompanied Housing Improvement Fund may be used to make a cash investment under this section in a nongovernmental entity only after the end of the 30-day period beginning on the date the Secretary of Defense submits written notice of, and justification for, the investment to the appropriate committees of Congress”.</content> </subsection> </quotedContent> </content></section> </subtitle> <subtitle> <num value="B">Subtitle B—</num><heading>Real Property And Facilities Administration</heading> <section> <num value="2811">SEC. 2811. </num><heading>INCREASE IN CEILING FOR MINOR LAND ACQUISITION PROJECTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Increase</inline>.—</heading><content>Section 2672 of title 10, United States Code, is amended by striking out “$200,000” both places it appears in subsection (a) and inserting in lieu thereof “$500,000”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendments</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The section heading for such section is amended to read as follows:<page identifier="/us/stat/111/1992">111 STAT. 1992</page> <quotedContent> <section> <num value="2672">“§ 2672. </num><heading>Acquisition: interests in land when cost is not more than $500,000”.</heading> </section> </quotedContent> </content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of chapter 159 of such title is amended by striking out the item relating to section 2672 and inserting in lieu thereof the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“2672.</designator> <label>Acquisition: interests in land when cost is not more than $500,000.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> </section> <section> <num value="2812">SEC. 2812. </num><heading>PERMANENT AUTHORITY REGARDING CONVEYANCE OF UTILITY SYSTEMS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>Chapter 159 of title 10, United States Code, is amended by inserting after section 2687 the following new section: <quotedContent> <section> <num value="2688">“§ 2688. </num><heading>Utility systems: conveyance authority</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Conveyance Authority</inline>.—</heading><content>The Secretary of a military department may convey a utility system, or part of a utility system, under the jurisdiction of the Secretary to a municipal, private, regional, district, or cooperative utility company or other entity. The conveyance may consist of all right, title, and interest of the United States in the utility system or such lesser estate as the Secretary considers appropriate to serve the interests of the United States.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Selection of Conveyee</inline>.—</heading><content>If more than one utility or entity referred to in subsection (a) notifies the Secretary concerned of an interest in a conveyance under such subsection, the Secretary shall carry out the conveyance through the use of competitive procedures.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Consideration</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>The Secretary concerned shall require as consideration for a conveyance under subsection (a) an amount equal to the fair market value (as determined by the Secretary) of the right, title, or interest of the United States conveyed. The consideration may take the form of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>a lump sum payment; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>a reduction in charges for utility services provided by the utility or entity concerned to the military installation at which the utility system is located.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>If the utility services proposed to be provided as consideration under paragraph (1) are subject to regulation by a Federal or State agency, any reduction in the rate charged for the utility services shall be subject to establishment or approval by that agency.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Treatment of Payments</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>A lump sum payment received under subsection (c) shall be credited, at the election of the Secretary concerned—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>to an appropriation of the military department concerned available for the procurement of the same utility services as are provided by the utility system conveyed under this section;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>to an appropriation of the military department available for carrying out energy savings projects or water conservation projects; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>to an appropriation of the military department available for improvements to other utility systems.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>Amounts so credited shall be merged with funds in the appropriation to which credited and shall be available for the same purposes, and subject to the same conditions and limitations, as the appropriation with which merged.<page identifier="/us/stat/111/1993">111 STAT. 1993</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Notice-and-Wait Requirement</inline>.—</heading><chapeau>The Secretary concerned may not make a conveyance under subsection (a) until—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><chapeau>the Secretary submits to the Committee on Armed Services and the Committee on Appropriations of the Senate and the Committee on National Security and the Committee on Appropriations of the House of Representatives an economic analysis (based upon accepted life-cycle costing procedures approved by the Secretary of Defense) demonstrating that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>the long-term economic benefit of the conveyance to the United States exceeds the long-term economic cost of the conveyance to the United States; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>the conveyance will reduce the long-term costs of the United States for utility services provided by the utility system concerned; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>a period of 21 days has elapsed after the date on which the economic analysis is received by the committees.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f) </num><heading><inline class="smallCaps">Additional Terms and Conditions</inline>.—</heading><content>The Secretary concerned may require such additional terms and conditions in connection with a conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g) </num><heading><inline class="smallCaps">Utility System Defined</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>In this section, the term ‘utility system’ means any of the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>A system for the generation and supply of electric power.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>A system for the treatment or supply of water.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>A system for the collection or treatment of wastewater.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>A system for the generation or supply of steam, hot water, and chilled water.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E) </num><content>A system for the supply of natural gas.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F) </num><content>A system for the transmission of telecommunications.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><chapeau>The term ‘utility system’ includes the following:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>Equipment, fixtures, structures, and other improvements utilized in connection with a system referred to in paragraph (1).</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>Easements and rights-of-way associated with a system referred to in that paragraph.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">“(h) </num><heading><inline class="smallCaps">Limitation</inline>.—</heading><content>This section shall not apply to projects constructed or operated by the Army Corps of Engineers under its civil works authorities”.</content> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 2687 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“2688.</designator> <label>Utility systems: conveyance authority ”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="2813">SEC. 2813. </num><heading>ADMINISTRATIVE EXPENSES FOR CERTAIN REAL PROPERTY TRANSACTIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Acceptance Authorized</inline>.—</heading><content>Chapter 159 of title 10, United States Code, is amended by adding at the end the following new section: <quotedContent> <num value="2695">“§ 2695. </num><heading>Acceptance of funds to cover administrative expenses relating to certain real property transactions</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Authority To Accept</inline>.—</heading><content>In connection with a real property transaction referred to in subsection (b) with a non-Federal person or entity, the Secretary of a military department may accept <page identifier="/us/stat/111/1994">111 STAT. 1994</page>amounts provided by the person or entity to cover administrative expenses incurred by the Secretary in entering into the transaction.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote><heading><inline class="smallCaps">Covered Transactions</inline>.—</heading><chapeau>Subsection (a) applies to the following transactions:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>The exchange of real property.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The grant of an easement over, in, or upon real property of the United States.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>The lease or license of real property of the United States.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Use of Amounts Collected</inline>.—</heading><content>Amounts collected under subsection (a) for administrative expenses shall be credited to the appropriation, fund, or account from which the expenses were paid. .Amounts so credited shall be merged with funds in such appropriation, fund, or account and shall be available for the same purposes and subject to the same limitations as the funds with which merged.”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections at the beginning of chapter 159 of such title is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“2695.</designator> <label>Acceptance of funds to cover administrative expenses relating to certain real property transactions.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <section> <num value="2814">SEC. 2814. </num><heading>SCREENING OF REAL PROPERTY TO BE CONVEYED BY DEPARTMENT OF DEFENSE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Requirement</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Chapter 159 of title 10, United States Code, is amended by inserting after section 2695, as added by section 2813, the following new section: <quotedContent> <section> <num value="2696">“§2696. </num><heading>Screening of real property for further Federal use before conveyance</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Screening Requirement</inline>.—</heading><content>The Secretary concerned may not convey real property that is authorized or required to be conveyed, whether for or without consideration, by any provision of law unless the Administrator of General Services has screened the property for further Federal use in accordance with the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Notification.</p></sidenote><heading><inline class="smallCaps">Time for Screening</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>Before the end of the 30-day period beginning on the date of the enactment of a provision of law authorizing or requiring the conveyance of a parcel of real property by the Secretary concerned, the Administrator of General Services shall complete the screening required by paragraph (1) with regard to the real property and notify the Secretary concerned of the results of the screening. The notice shall include—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>the name of the Federal agency requesting transfer of the property;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>the proposed use to be made of the property by the Federal agency; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">“(C) </num><content>the fair market value of the property, including any improvements thereon, as estimated by the Administrator.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>If the Administrator fails to complete the screening and notify the Secretary concerned within such period, the Secretary concerned shall proceed with the conveyance of the real property as provided in the provision of law authorizing or requiring the conveyance.<page identifier="/us/stat/111/1995">111 STAT. 1995</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Notice of Further Federal Use</inline>.—</heading><content>If the Administrator of General Services notifies the Secretary concerned under subsection (b) that further Federal use of a parcel of real property authorized or required to be conveyed by any provision of law is requested by a Federal agency, the Secretary concerned shall submit a copy of the notice to Congress.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Congressional Disapproval</inline>.—</heading><content>If the Secretary concerned submits a notice under subsection (c) with regard to a parcel of real property, the Secretary concerned may not proceed with the conveyance of the real property as provided in the provision of law authorizing or requiring the conveyance if Congress enacts a law rescinding the conveyance authority or requirement before the end of the 180-day period beginning on the date on which the Secretary concerned submits the notice.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Excepted Conveyance Authorities</inline>.—</heading><chapeau>The screening requirements of this section shall not apply to real property authorized or required to be conveyed under any of the following provisions of law:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>Section 2687 of this title.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>Title II of the Defense Authorization Amendments and Base Closure and Realignment Act (Public Law 100–526; 10 U.S.C. 2687 note).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>The Defense Base Closure and Realignment Act of 1990 (part A of title XXIX of Public Law 101–510; 10 U.S.C. 2687 note).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>Any provision of law authorizing the closure or realignment of a military installation that is enacted after the date of enactment of the National Defense Authorization Act for Fiscal Year 1998.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><content>Title II of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 481 et seq.).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6) </num><content>Any specific provision of law authorizing or requiring the transfer of administrative jurisdiction over a parcel of real property between Federal agencies.”.</content></paragraph> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 2695, as added by section 2813, the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“2696.</designator> <label>Screening of real property for further Federal use before conveyance.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Applicability</inline>.—</heading><content>Section 2696 of title 10, United States<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2696">10 USC 2696 note</ref>.</p></sidenote> Code, as added by subsection (a) of this section, shall apply with respect to any real property authorized or required to be conveyed under a provision of law covered by such section that is enacted after December 31, 1997.</content> </subsection> </section> <section> <num value="2815">SEC. 2815. </num><heading>DISPOSITION OF PROCEEDS OF SALE OF AIR FORCE PLANT NO. 78, BRIGHAM CITY, UTAH.</heading> <content>Notwithstanding section 204(h)(2)(A) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 485(h)(2)(A)), the entire amount deposited by the Administrator of General Services in the special account in the Treasury (established under section 204(h)(2) of such Act) as a result of the sale of Air Force Plant No. 78, Brigham City, Utah, shall be available, to the extent provided in appropriations Acts, to the Secretary of the Air Force for facility maintenance, facility repair, and environmental restoration at other industrial plants of the Air Force.<page identifier="/us/stat/111/1996">111 STAT. 1996</page></content> </section> <section> <num value="2816">SEC. 2816. </num><heading>FIRE PROTECTION AND HAZARDOUS MATERIALS PROTECTION AT FORT MEADE, MARYLAND.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Plan</inline>.—</heading><content>Not later than 120 days after the date of the enactment of this Act, the Secretary of the Army shall submit to the congressional defense committees a plan to address the requirements for fire protection services and hazardous materials protection services at Fort Meade, Maryland, including the National Security Agency at Fort Meade, as identified in the preparedness evaluation report of the Army Corps of Engineers regarding Fort Meade.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><chapeau>Elements.—The plan shall include the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>A schedule for the implementation of the plan.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>A detailed list of funding options available to provide centrally located modem facilities and equipment to meet current requirements for fire protection services and hazardous materials protection services at Fort Meade.</content></paragraph> </subsection> </section> </subtitle> <subtitle> <num value="C">Subtitle C—</num><heading>Defense Base Closure and Realignment</heading> <section> <num value="2821">SEC. 2821. </num><heading>CONSIDERATION OF MILITARY INSTALLATIONS AS SITES FOR NEW FEDERAL FACILITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">1988 Law</inline>.—</heading><chapeau>Section 204(b)(5) of the Defense Authorization Amendments and Base Closure and Realignment Act (Public Law 100–526; 10 U.S.C. 2687 note) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subparagraph (A), by striking out “subparagraph (B)” and inserting in lieu thereof “subparagraphs (B) and (C)”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><clause class="inline"><num value="i">(i) </num><content>Before acquiring non-Federal real property as the location for a new or replacement Federal facility of any type, the head of the Federal agency acquiring the property shall consult with the Secretary regarding the feasibility and cost advantages of using Federal property or facilities at a military installation closed or realigned or to be closed or realigned under this title as the location for the new or replacement facility. In considering the availability and suitability of a specific military installation, the Secretary and the head of the Federal agency involved shall obtain the concurrence of the redevelopment authority with respect to the installation and comply with the redevelopment plan for the installation.</content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote><content>Not later than 30 days after acquiring non-Federal real property as the location for a new or replacement Federal facility, the head of the Federal agency acquiring the property shall submit to Congress a report containing the results of the consultation under clause (i) and the reasons why military installations referred to in such clause that are located within the area to be served by the new or replacement Federal facility or within a 200-mile radius of the new or replacement facility, whichever area is greater, were considered to be unsuitable or unavailable for the site of the new or replacement facility.</content></clause> <clause class="indent0 fontsize10"><num value="iii">“(iii) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8">Termination date.</p></sidenote><content>This subparagraph shall apply during the period beginning on the date of the enactment of the National Defense Authorization Act for Fiscal Year 1998 and ending on July 31, 2001.”.<page identifier="/us/stat/111/1997">111 STAT. 1997</page></content></clause> </subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">1990 Law</inline>.—</heading><chapeau>Section 2905(b)(5) of the Defense Base Closure and Realignment Act of 1990 (Public Law 101–510; 10 U.S.C. 2687 note) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subparagraph (A), by striking out “subparagraph (B)” and inserting in lieu thereof “subparagraphs (B) and (C)”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><clause class="inline"><num value="i">(i) </num><content>Before acquiring non-Federal real property as the location for a new or replacement Federal facility of any type, the head of the Federal agency acquiring the property shall consult with the Secretary regarding the feasibility and cost advantages of using Federal property or facilities at a military installation closed or realigned or to be closed or realigned under this part as the location for the new or replacement facility. In considering the availability and suitability of a specific military installation, the Secretary and the head of the Federal agency involved shall obtain the concurrence of the redevelopment authority with respect to the installation and comply with the redevelopment plan for the installation.</content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii) </num><content>Not later than 30 days after acquiring non-Federal<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> real property as the location for a new or replacement Federal facility, the head of the Federal agency acquiring the property shall submit to Congress a report containing the results of the consultation under clause (i) and the reasons why military installations referred to in such clause that are located within the area to be served by the new or replacement Federal facility or within a 200-mile radius of the new or replacement facility, whichever area is greater, were considered to be unsuitable or unavailable for the site of the new or replacement facility.</content></clause> <clause class="indent0 fontsize10"><num value="iii">“(iii) </num><content>This subparagraph shall apply during the period beginning<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8">Termination date.</p></sidenote> on the date of the enactment of the National Defense Authorization Act for Fiscal Year 1998 and ending on July 31, 2001.”.</content></clause> </subparagraph> </quotedContent> </content></paragraph> </subsection> </section> <section> <num value="2822">SEC. 2822. </num><heading>ADJUSTMENT AND DIVERSIFICATION ASSISTANCE TO ENHANCE PERFORMANCE OF MILITARY FAMILY SUPPORT SERVICES BY PRIVATE SECTOR SOURCES.</heading> <content>Section 2391(b)(5) of title 10, United States Code, is amended by adding at the end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>The Secretary of Defense may also make grants, conclude cooperative agreements, and supplement other Federal funds in order to assist a State or local government in enhancing the capabilities of the government to support efforts of the Department of Defense to privatize, contract for, or diversify the performance of military family support services in cases in which the capability of the Department to provide such services is adversely affected by an action described in paragraph (1).”.</content></subparagraph> </quotedContent> </content></section> <section> <num value="2823">SEC. 2823. </num><heading>SECURITY, FIRE PROTECTION, AND OTHER SERVICES AT PROPERTY FORMERLY ASSOCIATED WITH RED RIVER ARMY DEPOT, TEXAS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Authority To Enter Into Agreement</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of the Army may enter into an agreement with the local redevelopment authority for Red River Army Depot, Texas, under which agreement the Secretary provides security services, fire protection services, or hazardous material response services for the authority with respect to the property at the depot that is under the jurisdiction of the authority as a result of the realignment of the depot under the base closure laws.<page identifier="/us/stat/111/1998">111 STAT. 1998</page></content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The Secretary may not enter into the agreement unless the Secretary determines that the provision of services under the agreement is in the best interests of the United States.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Reimbursement</inline>.—</heading><content>The agreement under subsection (a) shall provide for reimbursing the Secretary for the services provided by the Secretary under the agreement.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Treatment of Reimbursement</inline>.—</heading><content>Any amounts received by the Secretary under subsection (b) as reimbursement for services provided under the agreement entered into under subsection (a) shall be credited to the appropriations providing funds for the services. Amounts so credited shall be merged with the appropriations to which credited and shall be available for the purposes, and subject to the conditions and limitations, for which such appropriations are available.</content> </subsection> </section> <section> <num value="2824">SEC. 2824. </num><heading>REPORT ON CLOSURE AND REALIGNMENT OF MILITARY INSTALLATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Report</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of Defense shall prepare and submit to the congressional defense committees a report on the costs and savings attributable to the rounds of base closures and realignments conducted under the base closure laws and on the need, if any, for additional rounds of base closures and realignments.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>For purposes of this section, the term “base closure laws” means—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>title II of the Defense Authorization Amendments and Base Closure and Realignment Act (Public Law 100–526; 10 U.S.C. 2687 note); and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>the Defense Base Closure and Realignment Act of 1990 (part A of title XXIX of Public Law 101–510; 10 U.S.C. 2687 note).</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Elements</inline>.—</heading><chapeau>The report under subsection (a) shall include the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>A statement, using data consistent with budget data, of the actual costs and savings (to the extent available for prior fiscal years) and the estimated costs and savings (in the case of future fiscal years) attributable to the closure and realignment of military installations as a result of the base closure laws.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>A comparison, set forth by base closure round, of the actual costs and savings stated under paragraph (1) to the estimates of costs and savings submitted to the Defense Base Closure and Realignment Commission as part of the base closure process.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>A comparison, set forth by base closure round, of the actual costs and savings stated under paragraph (1) to the annual estimates of costs and savings previously submitted to Congress.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>A list of each military installation at which there is authorized to be employed 300 or more civilian personnel, set forth by Armed Force.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><chapeau>An estimate of current excess capacity at military installations, set forth—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>as a percentage of the total capacity of the military installations of the Armed Forces with respect to all military installations of the Armed Forces;<page identifier="/us/stat/111/1999">111 STAT. 1999</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>as a percentage of the total capacity of the military installations of each Armed Force with respect to the military installations of such Armed Force; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>as a percentage of the total capacity of a type of military installations with respect to military installations of such type.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>An assessment of the effect of the previous base closure rounds on military capabilities and the ability of the Armed Forces to fulfill the National Military Strategy.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>A description of the types of military installations that would be recommended for closure or realignment in the event of one or more additional base closure rounds, set forth by Armed Force.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>The criteria to be used by the Secretary in evaluating military installations for closure or realignment in such event.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><content>The methodologies to be used by the Secretary in identifying military installations for closure or realignment in such event.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10) </num><content>An estimate of the costs and savings that the Secretary believes will be achieved as a result of the closure or realignment of military installations in such event, set forth by Armed Force and by year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="11">(11) </num><content>An assessment of whether the costs and estimated savings from one or more future rounds of base closures and realignments, currently unauthorized, are already contained in the current Future Years Defense Plan, and, if not, whether the Secretary will recommend modifications in future defense spending in order to accommodate such costs and savings.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Method of Presenting Information</inline>.—</heading><chapeau>The statement and comparison required by paragraphs (1) and (2) of subsection (b) shall be set forth by Armed Force, type of facility, and fiscal year, and include the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Operation and maintenance costs, including costs associated with expanded operations and support, maintenance of property, administrative support, and allowances for housing at military installations to which functions are transferred as a result of the closure or realignment of other installations.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Military construction costs, including costs associated with rehabilitating, expanding, and constructing facilities to receive personnel and equipment that are transferred to military installations as a result of the closure or realignment of other installations.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Environmental cleanup costs, including costs associated with assessments and restoration.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><chapeau>Economic assistance costs, including—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>expenditures on Department of Defense demonstration projects relating to economic assistance;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>expenditures by the Office of Economic Adjustment; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>to the extent available, expenditures by the Economic Development Administration, the Federal Aviation Administration, and the Department of Labor relating to economic assistance.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>To the extent information is available, unemployment compensation costs, early retirement benefits (including benefits paid under section 5597 of title 5, United States Code), and worker retraining expenses under the Priority Placement <page identifier="/us/stat/111/2000">111 STAT. 2000</page>Program, the Job Training Partnership Act, and any other federally funded job training program.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>Costs associated with military health care.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>Savings attributable to changes in military force structure.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>Savings due to lower support costs with respect to military installations that are closed or realigned.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Deadline</inline>.—</heading><content>The Secretary shall submit the report under subsection (a) not later than the date on which the President submits to Congress the budget for fiscal year 2000 under section 1105(a) of title 31, United States Code.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Review</inline>.—</heading><content>The Congressional Budget Office and the Comptroller General shall conduct a review of the report prepared under subsection (a).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Prohibition on Use of Funds</inline>.—</heading><chapeau>Except as necessary to prepare the report required under subsection (a), no funds authorized to be appropriated or otherwise made available to the Department of Defense by this Act or any other Act may be used for the purposes of planning for, or collecting data in anticipation of, an authorization providing for procedures under which the closure and realignment of military installations may be accomplished, until the later of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the date on which the Secretary submits the report required by subsection (a); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the date on which the Congressional Budget Office and the Comptroller General complete a review of the report under subsection (e).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num><heading><inline class="smallCaps">Sense of Congress</inline>.—</heading><chapeau>It is the sense of the Congress that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the Secretary should develop a system having the capacity to quantify the actual costs and savings attributable to the closure and realignment of military installations pursuant to the base closure process; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the Secretary should develop the system in expedient fashion, so that the system may be used to quantify costs and savings attributable to the 1995 base closure round.</content></paragraph> </subsection> </section> <section> <num value="2825">SEC. 2825. </num><heading>SENSE OF SENATE REGARDING UTILIZATION OF SAVINGS DERIVED FROM BASE CLOSURE PROCESS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>The Senate makes the following findings:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Since 1988, the Department of Defense has conducted four rounds of closures and realignments of military installations in the United States, resulting in the closure of 97 installations.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The cost of carrying out the closure or realignment of installations covered by such rounds is estimated by the Secretary of Defense to be $23,000,000,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The savings expected as a result of the closure or realignment of such installations are estimated by the Secretary to be $10,300,000,000 through fiscal year 1996 and $36,600,000,000 through 2001.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>In addition to such savings, the Secretary has estimated recurring savings as a result of the closure or realignment of such installations of approximately $5,600,000,000 annually.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>The fiscal year 1997 budget request for the Department assumed a savings of between $2,000,000,000 and $3,000,000,000 as a result of the closure or realignment of such installations, which savings were to be dedicated to the <page identifier="/us/stat/111/2001">111 STAT. 2001</page>modernization of the Armed Forces. The savings assumed in the budget request were not realized.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>The fiscal year 1998 budget request for the Department assumes a savings of $5,000,000,000 as a result of the closure or realignment of such installations, which savings are to be dedicated to the modernization of the Armed Forces.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><content>Sense of Senate on Use of Savings Resulting From Base Closure Process.—It is the sense of the Senate that the savings identified in the report under section 2824 should be made available to the Department of Defense solely for purposes of the modernization of new weapon systems (including research, development, test, and evaluation relating to such modernization) and should be used by the Department solely for such purposes.</content> </subsection> </section> <section> <num value="2826">SEC. 2826. </num><heading>PROHIBITION AGAINST CERTAIN CONVEYANCES OF PROPERTY AT NAVAL STATION, LONG BEACH, CALIFORNIA.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Prohibition Against Direct Conveyance</inline>.—</heading><content>In disposing of real property in connection with the closure of Naval Station, Long Beach, California, under the Defense Base Closure and Realignment Act of 1990 (part A of title XXIX of Public Law 101–510; 10 U.S.C. 2687 note), the Secretary of the Navy may not convey any portion of the property (by sale, lease, or other method) to the China Ocean Shipping Company or any legal successor or subsidiary of that Company (in this section referred to as “COSCO”).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Prohibition Against Indirect Conveyance</inline>.—</heading><content>The Secretary of the Navy shall impose as a condition on each conveyance of real property located at Naval Station, Long Beach, California, the requirement that the property may not be subsequently conveyed (by sale, lease, or other method) to COSCO.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Reversionary Interest</inline>.—</heading><content>If the Secretary of the Navy determines at any time that real property located at Naval Station, Long Beach, California, and conveyed under the Defense Base Closure and Realignment Act of 1990 has been conveyed to COSCO in violation of subsection (b) or is otherwise being used by COSCO in violation of such subsection, all right, title, and interest in and to the property shall revert to the United States, and the United States shall have immediate right of entry thereon.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">National Security Report and Determination</inline>.—</heading><content>Not later than 30 days after the date of the enactment of this Act, the Secretary of Defense and the Director of the Federal Bureau of Investigation shall separately submit to the President and the congressional defense committees a report regarding the potential national security implications of conveying property described in subsection (a) to COSCO. Each report shall specifically identify any increased risk of espionage, arms smuggling, or other illegal activities that could result from a conveyance to COSCO and recommend appropriate action to address any such risk.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Waiver Authority</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>The President may waive the prohibitions contained in this section with respect to a conveyance of property described in subsection (a) to COSCO if the President determines that—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>appropriate action has been taken to address any increased national security risk identified in the reports required by subsection (d); and<page identifier="/us/stat/111/2002">111 STAT. 2002</page></content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>the conveyance would not adversely affect national security or significantly increase the counter-intelligence burden on the intelligence community.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><sidenote><p class="indent0 firstIndent0 fontsize8">President.</p><p class="indent0 firstIndent0 fontsize8">Notification.</p></sidenote><content>Any waiver under paragraph (1) shall take effect 30 days after the date on which the President notifies the Speaker of the House of Representatives and the President of the Senate of the President’s determination to use the waiver authority provided under this subsection.</content></paragraph> </subsection> </section> </subtitle> <subtitle> <num value="D">Subtitle D—</num><heading>Land Conveyances</heading> <part> <num value="I">PART I—</num><heading>ARMY CONVEYANCES</heading> <section> <num value="2831">SEC. 2831. </num><heading>LAND CONVEYANCE, ARMY RESERVE CENTER, GREENSBORO, ALABAMA.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Conveyance Authorized</inline>.—</heading><content>The Secretary of the Army may convey, without consideration, to Hale County, Alabama, all right, title, and interest of the United States in and to a parcel of real property consisting of approximately 5.17 acres and located at the Army Reserve Center, Greensboro, Alabama, that was conveyed by Hale County, Alabama, to the United States by warranty deed dated September 12, 1988.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Description of Property</inline>.—</heading><content>The exact acreage and legal description of the property to be conveyed under subsection (a) shall be as described in the deed referred to in that subsection.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Additional Terms and Conditions</inline>.—</heading><content>The Secretary may require such additional terms and conditions in connection with the conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.</content> </subsection> </section> <section> <num value="2832">SEC. 2832. </num><heading>LAND CONVEYANCE, JAMES T. COKER ARMY RESERVE CENTER, DURANT, OKLAHOMA.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Conveyance Authorized</inline>.—</heading><content>The Secretary of the Army may convey, without consideration, to Big Five Community Services, Incorporated, a nonprofit organization operating in Durant, Oklahoma, all right, title, and interest of the United States in and to a parcel of real property located at 1500 North First Street in Durant, Oklahoma, and containing the James T. Coker Army Reserve Center, if the Secretary determines that the Reserve Center is excess to the needs of the Armed Forces.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Condition of Conveyance</inline>.—</heading><content>The conveyance authorized under subsection (a) shall be subject to the condition that Big Five Community Services, Incorporated, retain the conveyed property for educational purposes.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Reversion</inline>.—</heading><content>If the Secretary determines at any time that the real property conveyed under subsection (a) is not being used for the purpose specified in subsection (b), all right, title, and interest in and to the real property, including any improvements thereon, shall revert to the United States, and the United States shall have the right of immediate entry thereon.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Description of Property</inline>.—</heading><content>The exact acreage and legal description of the real property to be conveyed under subsection (a) shall be determined by a survey satisfactory to the Secretary. The cost of the survey shall be borne by Big Five Community Services, Incorporated.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Additional Terms and Conditions</inline>.—</heading><content>The Secretary may require such additional terms and conditions in connection with <page identifier="/us/stat/111/2003">111 STAT. 2003</page>the conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.</content> </subsection> </section> <section> <num value="2833">SEC. 2833. </num><heading>LAND CONVEYANCE, GIBSON ARMY RESERVE CENTER, CHICAGO, ILLINOIS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Conveyance Authorized</inline>.—</heading><content>The Secretary of the Army may convey, without consideration, to the Lawndale Business and Local Development Corporation (in this section referred to as the “Corporation”), a nonprofit organization organized in the State of Illinois, all right, title, and interest of the United States in and to a parcel of real property, including improvements thereon, that is located at 4454 West Cermak Road in Chicago, Illinois, and contains the Gibson Army Reserve Center.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Condition of Conveyance</inline>.—</heading><chapeau>The conveyance under subsection (a) shall be subject to the condition that the Corporation—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>use the conveyed property, directly or through an agreement with a public or private entity, for economic redevelopment purposes; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>convey the property to an appropriate public or private entity for use for such purposes.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Reversion</inline>.—</heading><content>If the Secretary determines at any time that the real property conveyed under subsection (a) is not being used for economic redevelopment purposes, as required by subsection (b), all right, title, and interest m and to the property, including any improvements thereon, shall revert to the United States, and the United States shall have the right of immediate entry onto the property.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Description of Property</inline>.—</heading><content>The exact acreage and legal description of the real property to be conveyed under subsection (a) shall be determined by a survey satisfactory to the Secretary. The cost of the survey shall be borne by the Corporation.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Additional Terms and Conditions</inline>.—</heading><content>The Secretary may require such additional terms and conditions in connection with the conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.</content> </subsection> </section> <section> <num value="2834">SEC. 2834. </num><heading>LAND CONVEYANCE, FORT A. P. HILL, VIRGINIA.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Conveyance Authorized</inline>.—</heading><content>The Secretary of the Army may convey to Caroline County, Virginia (in this section referred to as the “County”), all right, title, and interest of the United States in and to a parcel of unimproved real property consisting of approximately 10 acres located at Fort A. P. Hill, Virginia. The purpose of the conveyance is to permit the County to establish a solid waste transfer and recycling facility on the property.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Consideration</inline>.—</heading><content>As consideration for the conveyance under subsection (a), the County shall permit the Army, at no cost to the Army, to dispose of not less than 1,800 tons of solid waste annually at the facility established on the conveyed property. The obligation of the County to accept solid waste under this subsection shall not commence until after the solid waste transfer and recycling facility on the conveyed property becomes operational, and the establishment of a solid waste collection and transfer site on the ,36-acre parcel described in subsection (d)(2) shall not be construed to impose the obligation.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Disclaimer</inline>.—</heading><content>The United States shall not be responsible for the provision or cost of utilities or any other improvements necessary to carry out the conveyance under subsection (a) or to <page identifier="/us/stat/111/2004">111 STAT. 2004</page>establish or operate the solid waste transfer and recycling facility intended for the property.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Reversion</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Except as provided in paragraph (2), if the Secretary determines that a solid waste transfer and recycling facility is not operational, before December 31, 1999, on the real property conveyed under subsection (a), all right, title, and interest in and to such real property, including any improvements thereon, shall revert to the United States, and the United States shall have the right of immediate entry thereon.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Paragraph (1) shall not apply with respect to a parcel of approximately .36 acres of the approximately 10-acre parcel to be conveyed under subsection (a), which is included in the larger conveyance to permit the County to establish a solid waste collection and transfer site for residential waste.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Additional Terms and Conditions</inline>.—</heading><content>The Secretary may require such additional terms and conditions in connection with the conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.</content> </subsection> </section> <section> <num value="2835">SEC. 2835. </num><heading>LAND CONVEYANCES, FORT DIX, NEW JERSEY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Conveyances Authorized</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of the Army may convey, without consideration, to the Borough of Wrightstown, New Jersey (in this section referred to as the “Borough”), all right, title, and interest of the United States in and to a parcel of real property (including improvements thereon) consisting of approximately 39.69 acres located at Fort Dix, New Jersey, for the purpose of permitting the Borough to develop the parcel for economic purposes.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The Secretary may convey, without consideration, to the New Hanover Board of Education (in this section referred to as the “Board”), all right, title, and interest of the United States in and to an additional parcel of real property (including improvements thereon) at Fort Dix consisting of approximately five acres for the purpose of permitting the Board to develop the parcel for educational purposes.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Conditions of Conveyance</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>The conveyance under subsection (a)(1) shall be subject to the condition that the Borough—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>use the conveyed property, directly or through an agreement with a public or private entity, for economic development purposes; or</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>convey the property to an appropriate public or private entity for use for such purposes.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The conveyance under subsection (a)(2) shall be subject to the condition that the Board develop and use the conveyed property for educational purposes.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Reversion</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>If the Secretary determines at any time that the real property conveyed under subsection (a)(1) is not being used for economic development purposes, as required by subsection (b)(1), all right, title, and interest in and to the property conveyed under subsection (a)(1), including any improvements thereon, shall revert to the United States, and the United States shall have the right of immediate entry thereon.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>If the Secretary determines at any time that the real property conveyed under subsection (a)(2) is not being used for educational purposes, as required by subsection (b)(2), all right, title, and interest in and to the property conveyed under subsection (a)(2), including any improvements thereon, shall revert to the <page identifier="/us/stat/111/2005">111 STAT. 2005</page>United States, and the United States shall have the right of immediate entry thereon.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Description of Property</inline>.—</heading><content>The exact acreage and legal description of the real property to be conveyed under subsection (a) shall be determined by surveys satisfactory to the Secretary. The cost of the survey in connection with the conveyance under subsection (a)(1) shall be borne by the Borough, and the cost of the survey in connection with the conveyance under subsection (a)(2) shall be borne by the Board.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Additional Terms and Conditions</inline>.—</heading><content>The Secretary may require such additional terms and conditions in connection with the conveyances under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.</content> </subsection> </section> <section> <num value="2836">SEC. 2836. </num><heading>LAND CONVEYANCES, FORT BRAGG, NORTH CAROLINA.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Conveyances Authorized</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of the Army may convey, without consideration, to the Town of Spring Lake, North Carolina (in this section referred to as the “Town”), all right, title, and interest of the United States in and to a parcel of unimproved real property consisting of approximately 50 acres located at Fort Bragg, North Carolina.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The Secretary may convey, without consideration, to Harnett County, North Carolina (in this section referred to as the “County”), all right, title, and interest of the United States in and to a parcel of real property (including improvements thereon), known as Tract No. 404–2, consisting of approximately 157 acres located at Fort Bragg.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><content>The Secretary may convey, at fair market value, to the County all right, title, and interest of the United States in and to a parcel of real property (including improvements thereon), known as Tract No. 404–1, consisting of approximately 137 acres located at Fort Bragg.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Conditions of Conveyance</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The conveyance under subsection (a)(1) shall be subject to the condition that the Town use the conveyed property for access to a waste treatment facility and for economic development purposes.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The conveyance under subsection (a)(2) shall be subject to the condition that the County develop and use the conveyed property for educational purposes.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Reversion</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>If the Secretary determines at any time that the real property conveyed under subsection (a)(1) is not being used in accordance with subsection (b)(1), all right, title, and interest in and to the property conveyed under subsection (a)(1), including any improvements thereon, shall revert to the United States, and the United States shall have the right of immediate entry thereon.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>If the Secretary determines at any time that the real property conveyed under subsection (a)(2) is not being used in accordance with subsection (b)(2), all right, title, and interest in and to the property conveyed under subsection (a)(2), including any improvements thereon, shall revert to the United States, and the United States shall have the right of immediate entry thereon.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Description of Property</inline>.—</heading><content>The exact acreage and legal description of the real property to be conveyed under subsection (a) shall be determined by surveys satisfactory to the Secretary. The cost of the survey in connection with the conveyance under subsection (a)(1) shall be borne by the Town, and the cost of the <page identifier="/us/stat/111/2006">111 STAT. 2006</page>survey in connection with the conveyances under paragraphs (2) and (3) of subsection (a) shall be borne by the County.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Additional Terms and Conditions</inline>.—</heading><content>The Secretary may require such additional terms and conditions in connection with the conveyances under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.</content> </subsection> </section> <section> <num value="2837">SEC. 2837. </num><heading>LAND CONVEYANCE, HAWTHORNE ARMY AMMUNITION DEPOT, MINERAL COUNTY, NEVADA</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Conveyance Authorized</inline>.—</heading><content>The Secretary of the Army may convey, without consideration, to Mineral County, Nevada (in this section referred to as the “County”), all right, title, and interest of the United States in and to a parcel of excess real property, including improvements thereon, consisting of approximately 33.1 acres located at Hawthorne Army Ammunition Depot, Mineral County, Nevada, and commonly referred to as the Schweer Drive Housing Area, for the purpose of permitting the County to develop the parcel for economic purposes.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Conditions of Conveyance</inline>.—</heading><chapeau>The conveyance authorized by subsection (a) shall be subject to the following conditions:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>That the County accept the conveyed property subject to such easements and rights of way in favor of the United States as the Secretary considers appropriate.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>That the County, if the County sells any portion of the property conveyed under subsection (a) before the end of the 10-year period beginning on the date of enactment of this Act, pay to the United States an amount equal to the lesser of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the amount of sale of the property sold; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the fair market value of the property sold as determined without taking into account any improvements to such property by the County.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Description of Property</inline>.—</heading><content>The exact acreage and legal description of the real property to be conveyed under subsection (a), and of any easement or right of way granted under subsection (b)(1), shall be determined by a survey satisfactory to the Secretary. The cost of the survey shall be borne by the County.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Additional Terms and Conditions</inline>.—</heading><content>The Secretary may require such additional terms and conditions in connection with the conveyance under subsection (a), and any easement or right of way granted under subsection (b)(1), as the Secretary considers appropriate to protect the interests of the United States.</content> </subsection> </section> <section> <num value="2838">SEC. 2838. </num><heading>EXPANSION OF LAND CONVEYANCE AUTHORITY, INDIANA ARMY AMMUNITION PLANT, CHARLESTOWN. INDIANA.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Additional Conveyance</inline>.—</heading><chapeau>Subsection (a) of section 2858 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104–106; 110 Stat. 571) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>(1)</quotedText>” before “The Secretary of the Army”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The Secretary may also convey to the State, without consideration, an additional parcel of real property at the Indiana Army Ammunition Plant consisting of approximately 500 acres located along the Ohio River.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><content>Such section is further amended by striking out “conveyance” both places it appears in subsections (b) and (d) and inserting in lieu thereof “conveyances”.<page identifier="/us/stat/111/2007">111 STAT. 2007</page></content> </subsection> </section> <section> <num value="2839">SEC. 2839. </num><heading>MODIFICATION OF LAND CONVEYANCE, LOMPOC, CALIFORNIA.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Change in Authorized Uses of Land</inline>.—</heading><content>Section 834(b)(1) of the Military Construction Authorization Act, 1985 (Public Law 98–407; 98 Stat. 1526), is amended by striking out subparagraphs (A) and (B) and inserting in lieu thereof the following new subparagraphs: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>for educational and recreational purposes;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>for open space; or”.</content></subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Conforming Deed Changes</inline>.—</heading><content>With respect to the land conveyance made pursuant to section 834 of the Military Construction Authorization Act, 1985, the Secretary of the Army shall execute and file in the appropriate office or offices an amended deed or other appropriate instrument effectuating the changes to the authorized uses of the conveyed property resulting from the amendment made by subsection (a).</content> </subsection> </section> <section> <num value="2840">SEC. 2840. </num><heading>MODIFICATION OF LAND CONVEYANCE, ROCKY MOUNTAIN ARSENAL, COLORADO.</heading> <content>Section 5(c)(1) of Public Law 102–402 (106 Stat. 1966; 16 U.S.C. 668dd note) is amended by striking out the second sentence and inserting in lieu thereof the following new sentence: “The Administrator shall convey the transferred property to Commerce City, Colorado, for consideration in an amount equal to the fair market value of the property (as determined jointly by the Administrator and the City)?’.</content> </section> <section> <num value="2841">SEC. 2841. </num><heading>CORRECTION OF LAND CONVEYANCE AUTHORITY, ARMY RESERVE CENTER, ANDERSON, SOUTH CAROLINA.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Correction of Conveyee</inline>.—</heading><content>Subsection (a) of section 2824 of the Military Construction Authorization Act for Fiscal Year 1997 (division B of Public Law 104–201; 110 Stat. 2793) is amended by striking out “County of Anderson, South Carolina (in this section referred to as the ‘County’)” and inserting in lieu thereof “Board of Education, Anderson County, South Carolina (in this section referred to as the ‘Board’)”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><content>Subsections (b) and (c) of such section are each amended by striking out “the County” and inserting in lieu thereof “the Board”.</content> </subsection> </section> </part> <part> <num value="II">PART II—</num><heading>NAVY CONVEYANCES</heading> <section> <num value="2851">SEC. 2851. </num><heading>LAND CONVEYANCE, TOPSHAM ANNEX, NAVAL AIR STATION, BRUNSWICK, MAINE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Conveyance Authorized</inline>.—</heading><content>The Secretary of the Navy may convey, without consideration, to the Maine School Administrative District No. 75, Topsham, Maine (in this section referred to as the “District”), all right, title, and interest of the United States in and to a parcel of real property, including improvements thereon, consisting of approximately 40 acres located at the Topsham Annex, Naval Air Station, Brunswick, Maine.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Condition of Conveyance</inline>.—</heading><content>The conveyance under subsection (a) shall be subject to the condition that the District use the conveyed property for educational purposes.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Reversion</inline>.—</heading><content>If the Secretary determines at any time that the real property conveyed under subsection (a) is not being used for the purpose specified in subsection (b), all right, title, and<page identifier="/us/stat/111/2008">111 STAT. 2008</page>interest in and to the property, including any improvements thereon, shall revert to the United States, and the United States shall have the right of immediate entry thereon.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Interim Lease</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Until such time as the real property described in subsection (a) is conveyed by deed, the Secretary may lease the property, together with the improvements thereon, to the District.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>As consideration for the lease under this subsection, the District shall provide such security services for the property covered by the lease, and carry out such maintenance work with respect to the property, as the Secretary shall specify in the lease.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Description of Property</inline>.—</heading><content>The exact acreage and legal description of the property to be conveyed under subsection (a) shall be determined by a survey satisfactory to the Secretary. The cost of the survey shall be borne by the District.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Additional Terms and Conditions</inline>.—</heading><content>The Secretary may require such additional terms and conditions in connection with the conveyance under subsection (a), and the lease, if any, under subsection (d), as the Secretary considers appropriate to protect the interests of the United States.</content> </subsection> </section> <section> <num value="2852">SEC. 2852. </num><heading>LAND CONVEYANCE, NAVAL WEAPONS INDUSTRIAL RESERVE PLANT NO. 464, OYSTER BAY, NEW YORK.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Conveyance Authorized</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of the Navy may convey, without consideration, to the County of Nassau, New York (in this section referred to as the “County”), all right, title, and interest of the United States in and to parcels of real property consisting of approximately 110 acres and comprising the Naval Weapons Industrial Reserve Plant No. 464, Oyster Bay, New York.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>As part of the conveyance authorized in paragraph (1), the Secretary may convey to the County such improvements, equipment, fixtures, and other personal property (including special tooling equipment and special test equipment) located on the parcels as the Secretary determines to be not required by the Navy for other purposes.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">(B) </num><content>The Secretary may permit the County to review and inspect the improvements, equipment, fixtures, and other personal property located on the parcels for purposes of the conveyance authorized by this paragraph.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Condition of Conveyance</inline>.—</heading><chapeau>The conveyance of the parcels authorized in subsection (a) shall be subject to the condition that the County—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>use the parcels, directly or through an agreement with a public or private entity, for economic redevelopment purposes or such other public purposes as the County determines appropriate; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>convey the parcels to an appropriate public or private entity for use for such purposes.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Reversion</inline>.—</heading><content>If, during the five-year period beginning on the date the Secretary makes the conveyance authorized under subsection (a), the Secretary determines that the conveyed real property is not being used for a purpose specified in subsection (b), all right, title, and interest in and to the property, including any improvements thereon, shall revert to the United States, and the United States shall have the right of immediate entry onto the property.<page identifier="/us/stat/111/2009">111 STAT. 2009</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Interim Lease</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Until such time as the real property described in subsection (a) is conveyed by deed, the Secretary may lease the property, together with improvements thereon, to the County.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>As consideration for the lease under this subsection, the County shall provide such security services and fire protection services for the property covered by the lease, and carry out such maintenance work with respect to the property, as the Secretary shall specify in the lease.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Description of Property</inline>.—</heading><content>The exact acreage and legal description of the real property to be conveyed under subsection (a) shall be determined by a survey satisfactory to the Secretary. The cost of the survey shall be borne by the County.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Additional Terms and Conditions</inline>.—</heading><content>The Secretary may require such additional terms and conditions in connection with the conveyance under subsection (a), and the lease, if any, under subsection (d), as the Secretary considers appropriate to protect the interests of the United States.</content> </subsection> </section> <section> <num value="2853">SEC. 2853. </num><heading>CORRECTION OF LEASE AUTHORITY, NAVAL AIR STATION, MERIDIAN, MISSISSIPPI.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Correction of Lessee</inline>.—</heading><chapeau>Subsection (a) of section 2837 of the Military Construction Authorization Act for Fiscal Year 1997 (division B of Public Law 104–201; 110 Stat. 2798) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out “State of Mississippi (in this section referred to as the ‘State’)” and inserting in lieu thereof “County of Lauderdale, Mississippi (in this section referred to as the ‘County’)”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking out “The State” and inserting in lieu thereof “The County”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><content>Subsections (b) and (c) of such section are amended by striking out “State” each place it appears and inserting in lieu thereof “County”.</content> </subsection> </section> </part> <part> <num value="III">PART III—</num><heading>AIR FORCE CONVEYANCES</heading> <section> <num value="2881">SEC. 2881. </num><heading>LAND TRANSFER, EGLIN AIR FORCE BASE, FLORIDA.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Transfer</inline>.—</heading><content>The real property withdrawn by Executive Order 4525, dated October 1, 1826, which consists of approximately 440 acres of land at Cape San Blas, Gulf County, Florida, and any improvements thereon, is transferred from the administrative jurisdiction of the Secretary of Transportation to the administrative jurisdiction of the Secretary of the Air Force, without reimbursement. Executive Order 4525 is revoked, and the transferred real property shall be administered by the Secretary of the Air Force pursuant to the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.) and such other laws as may be applicable to Federal real property.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Use of Property</inline>.—</heading><content>The real property transferred under subsection (a) may be used in conjunction with operations at Eglin Air Force Base, Florida.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Legal Description</inline>.—</heading><content>The exact acreage and legal description of the real property to be transferred under subsection (a) shall be determined by a survey satisfactory to the Secretary of the Air Force. The cost of the survey shall be borne by the Secretary of the Air Force.<page identifier="/us/stat/111/2010">111 STAT. 2010</page></content> </subsection> </section> <section> <num value="2862">SEC. 2862. </num><heading>LAND CONVEYANCE, MARCH AIR FORCE BASE, CALIFORNIA.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Conveyance Authorized</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of the Air Force may convey to Air Force Village West, Incorporated (in this section referred to as the “Corporation”), of Riverside, California, all right, title, and interest of the United States in and to a parcel of real property located at March Air Force Base, California, and consisting of approximately 75 acres, as more fully described in subsection (c).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>If the Secretary does not make the conveyance authorized by paragraph (1) to the Corporation on or before January 1, 2006, the Secretary shall convey the real property instead to the March Joint Powers Authority, the redevelopment authority established for March Air Force Base.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Consideration</inline>.—</heading><content>As consideration for the conveyance under subsection (a)(1), the Corporation shall pay to the United States an amount equal to the fair market value of the real property, as determined by the Secretary.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Land Description</inline>.—</heading><content>The real property to be conveyed under subsection (a) is contiguous to land conveyed to the Corporation pursuant to section 835 of the Military Construction Authorization Act, 1985 (Public Law 98–407; 98 Stat. 1527), and lies within sections 27, 28, 33, and 34 of Township 3 South, Range 4 West, San Bernardino Base and Meridian, County of Riverside, California. The exact acreage and legal description of the real property shall be determined by a survey satisfactory to the Secretary. The cost of the survey shall be borne by the party receiving the property.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Technical Corrections Regarding Previous Conveyance</inline>.—</heading><chapeau>Section 835 of the Military Construction Authorization Act, 1985 (Public Law 98–407; 98 Stat. 1527), is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subsection (b), by striking out “subsection (b)” and inserting in lieu thereof “subsection (a)”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in subsection (c), by striking out “Clark Street,” and all that follows through the period and inserting in lieu thereof “Village West Drive, on the west by Allen Avenue, on the south by 8th Street, and the north is an extension of 11th Street between Allen Avenue and Clark Street.”.</content></paragraph> </subsection> </section> <section> <num value="2863">SEC. 2863. </num><heading>LAND CONVEYANCE, ELLSWORTH AIR FORCE BASE, SOUTH DAKOTA.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Conveyance Authorized</inline>.—</heading><content>The Secretary of the Air Force may convey, without consideration, to the Greater Box Elder Area Economic Development Corporation, Box Elder, South Dakota (in this section referred to as the “Corporation”), all right, title, and interest of the United States in and to the parcels of real property located at Ellsworth Air Force Base, South Dakota, referred to in subsection (b).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Covered Property</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>Subject to paragraph (2), the real property referred to in subsection (a) is the following:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>A parcel of real property, together with any improvements thereon, consisting of approximately 53.32 acres and comprising the Skyway Military Family Housing Area.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>A parcel of real property, together with any improvements thereon, consisting of approximately 137.56 acres and comprising the Renal Heights Military Family Housing Area.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><content>A parcel of real property, together with any improvements thereon, consisting of approximately 14.92 acres and comprising the East Nike Military Family Housing Area.<page identifier="/us/stat/111/2011">111 STAT. 2011</page></content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="D">(D) </num><content>A parcel of real property, together with any improvements thereon, consisting of approximately 14.69 acres and comprising the South Nike Military Family Housing Area.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="E">(E) </num><content>A parcel of real property, together with any improvements thereon, consisting of approximately 14.85 acres and comprising the West Nike Military Family Housing Area.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The real property referred to in subsection (a) does not include the portion of real property referred to in paragraph (1)(B) that the Secretary determines to be required for the construction of an access road between the main gate of Ellsworth Air Force Base and an interchange on Interstate Route 90 located in the vicinity of mile marker 67 in South Dakota.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Conditions of Conveyance</inline>.—</heading><chapeau>The conveyance of the real property referred to in subsection (b) shall be subject to the following conditions:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>That the Corporation, and any person or entity to which the Corporation transfers the property, comply in the use of the property with the applicable provisions of the Ellsworth Air Force Base Air Installation Compatible Use Zone Study.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>That the Corporation convey a portion of the real property referred to in subsection (b)1)(A), together with any improvements thereon, consisting of approximately 20 acres to the Douglas School District, South Dakota, for use for education purposes.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Reversion</inline>.—</heading><content>If the Secretary determines that any portion of the real property conveyed under subsection (a) is not being used in accordance with the applicable provision of subsection (c), all right, title, and interest in and to that portion of the real property, including any improvements thereon, shall revert to the United States, and the United States shall have the right of immediate entry thereon.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Legal Description</inline>.—</heading><content>The exact acreage and legal description of the property to be conveyed under subsection (a) shall be determined by a survey satisfactory to the Secretary. The cost of the survey shall be borne by the Corporation.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Additional Terms and Conditions</inline>.—</heading><content>The Secretary may require such additional terms and conditions in connection with the conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.</content> </subsection> </section> <section> <num value="2864">SEC. 2864. </num><heading>LAND CONVEYANCE, HANCOCK FIELD, SYRACUSE, NEW YORK.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Conveyance Authorized</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of the Air Force may convey, without consideration, to Onondaga County, New York (in this section referred to as the “County”), all right, title, and interest of the United States in and to a parcel of real property, including any improvements thereon, consisting of approximately 14.9 acres and located at Hancock Field, Syracuse, New York, the site of facilities no longer required for use by the 152nd Air Control Group of the New York Air National Guard.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>If, at the time of the conveyance authorized by paragraph (1), the property to be conveyed is under the jurisdiction of the Administrator of General Services rather than the Secretary, the Administrator shall make the conveyance.<page identifier="/us/stat/111/2012">111 STAT. 2012</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Condition of Conveyance</inline>.—</heading><content>The conveyance authorized by subsection (a) shall be subject to the condition that the County use the property conveyed for economic development purposes.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Reversion</inline>.—</heading><content>If the Secretary (or the Administrator in the event the conveyance is made by the Administrator) determines at any time that the property conveyed pursuant to this section is not being used for the purposes specified in subsection (b), all right, title, and interest in and to the property, including any improvements thereon, shall revert to the United States, and the United States shall have the right of immediate entry thereon.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Description of Property</inline>.—</heading><content>The exact acreage and legal description of the property to be conveyed under subsection (a) shall be determined by a survey satisfactory to the Secretary (or the Administrator in the event the conveyance is made by the Administrator). The cost of the survey shall be borne by the County.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Additional Terms and Conditions</inline>.—</heading><content>The Secretary (or the Administrator in the event the conveyance is made by the Administrator) may require such additional terms and conditions in connection with the conveyance under subsection (a) as the Secretary or the Administrator, as the case may be, considers appropriate to protect the interests of the United States.</content> </subsection> </section> <section> <num value="2865">SEC. 2865. </num><heading>LAND CONVEYANCE, HAVRE AIR FORCE STATION, MONTANA, AND HAVRE TRAINING SITE, MONTANA.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Conveyance Authorized</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of the Air Force may convey, without consideration, to the Bear Paw Development Corporation, Havre, Montana (in this section referred to as the “Corporation”), all, right, title, and interest of the United States in and to the real property described in paragraph (2).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>The authority in paragraph (1) applies to the following real property:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>A parcel of real property, including any improvements thereon, consisting of approximately 85 acres and comprising the Havre Air Force Station, Montana.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>A parcel of real property, including any improvements thereon, consisting of approximately 9 acres and comprising the Havre Training Site, Montana.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Conditions of Conveyance</inline>.—</heading><chapeau>The conveyance authorized by subsection (a) shall be subject to the following conditions:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>That the Corporation—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>convey to the Box Elder School District 13G, Montana, 10 single-family homes located on the property to be conveyed under that subsection as jointly agreed upon by the Corporation and the school district; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>grant the school district access to the property for purposes of removing the homes from the property.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>That the Corporation—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><chapeau>convey to the Hays/Lodgepole School District 50, Montana—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>27 single-family homes located on the property to be conveyed under that subsection as jointly agreed upon by the Corporation and the school district;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>one barracks housing unit located on the property;</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii) </num><content>two steel buildings (nos. 7 and 8) located on the property;<page identifier="/us/stat/111/2013">111 STAT. 2013</page></content></clause> <clause class="indent3 fontsize10"><num value="iv">(iv) </num><content>two tin buildings (nos. 37 and 44) located on the property; and</content></clause> <clause class="indent3 fontsize10"><num value="v">(v) </num><content>miscellaneous personal property located on the property that is associated with the buildings conveyed under this subparagraph; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>grant the school district access to the property for purposes of removing such homes and buildings, the housing unit, and such personal property from the property. </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><chapeau>That the Corporation—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>convey to the District 4 Human Resources Development Council, Montana, eight single-family homes located on the property to be conveyed under that subsection as jointly agreed upon by the Corporation and the council; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>grant the council access to the property for purposes of removing such homes from the property.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>That any property conveyed under subsection (a) that is not conveyed under this subsection be used for economic development purposes or housing purposes.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Reversion</inline>.—</heading><content>If the Secretary determines at any time that the portion of the property conveyed under subsection (a) which is covered by the condition specified in subsection (b)(4) is not being used for the purposes specified in that subsection, all right, title, and interest in and to such property, including any improvements thereon, shall revert to the United States, and the United States shall have the right of immediate entry thereon.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Description of Property</inline>.—</heading><content>The exact acreages and legal description of the parcels of property to be conveyed under subsection (a) shall be determined by surveys satisfactory to the Secretary. The cost of the surveys shall be borne by the Corporation.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Additional Terms and Conditions</inline>.—</heading><content>The Secretary may require such additional terms and conditions in connection with the conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.</content> </subsection> </section> <section> <num value="2866">SEC. 2866. </num><heading>LAND CONVEYANCE, CHARLESTON FAMILY HOUSING COMPLEX, BANGOR, MAINE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Conveyance Authorized</inline>.—</heading><content>The Secretary of the Air Force may convey, without consideration, to the City of Bangor, Maine (in this section referred to as the “City”), all right, title, and interest of the United States in and to a parcel of real property consisting of approximately 19.8 acres, including improvements thereon, located in Bangor, Maine, and known as the Charleston Family Housing Complex.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Purpose of Conveyance</inline>.—</heading><content>The purpose of the conveyance under subsection (a) is to facilitate the reuse of the real property, currently unoccupied, which the City proposes to use to provide housing opportunities for first-time home buyers.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Condition of Conveyance</inline>.—</heading><chapeau>The conveyance authorized by subsection (a) shall be subject to the condition that the City, if the City sells any portion of the property conveyed under subsection (a) before the end of the 10-year period beginning on the date of enactment of this Act, pay to the United States an amount equal to the lesser of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the amount of sale of the property sold; or<page identifier="/us/stat/111/2014">111 STAT. 2014</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the fair market value of the property sold as determined without taking into account any improvements to such property by the City.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Description of Property</inline>.—</heading><content>The exact acreage and legal description of the real property conveyed under subsection (a) shall be determined by a survey satisfactory to the Secretary. The cost of the survey shall be borne by the City.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Additional Terms and Conditions</inline>.—</heading><content>The Secretary may require such additional terms and conditions in connection with the conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.</content> </subsection> </section> <section> <num value="2867">SEC. 2867. </num><heading>STUDY OF LAND EXCHANGE OPTIONS, SHAW AIR FORCE BASE, SOUTH CAROLINA.</heading> <content>Section 2874 of the Military Construction Authorization Act for Fiscal Year 1996 (division B of Public Law 104–106; 110 Stat. 583) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="g">“(g) </num><heading><inline class="smallCaps">Study of Exchange Options</inline>.—</heading><content>To facilitate the use of a land exchange to acquire the real property described in subsection (a), the Secretary shall conduct a study to identify real property in the possession of the Air Force (located in the State of South Carolina or elsewhere) that satisfies the requirements of subsection (b)(2), is acceptable to the party holding the property to be acquired, <sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote>and is otherwise suitable for exchange under this section. Not later than three months after the date of the enactment of the National Defense Authorization Act for Fiscal Year 1998, the Secretary shall submit to Congress a report containing the results of the study.”.</content> </subsection> </quotedContent> </content></section> </part> </subtitle> <subtitle> <num value="E">Subtitle E—</num><heading>Other Matters</heading> <section> <num value="2871">SEC. 2871. </num><heading>REPEAL OF REQUIREMENT TO OPERATE NAVAL ACADEMY DAIRY FARM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Operation</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Chapter 603 of title 10, United States Code, is amended by adding at the end the following new section: <quotedContent> <section> <num value="6976">“§ 6976. </num><heading>Operation of Naval Academy dairy farm</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Discretion Regarding Continued Operation</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Subject to paragraph (2), the Secretary of the Navy may terminate or reduce the dairy or other operations conducted at the Naval Academy dairy farm located in Gambrills, Maryland.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><chapeau>Notwithstanding the termination or reduction of operations at the Naval Academy dairy farm under paragraph (1), the real property containing the dairy farm (consisting of approximately 875 acres)—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>may not be declared to be excess real property to the needs of the Navy or transferred or otherwise disposed of by the Navy or any Federal agency; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>shall be maintained in its rural and agricultural nature.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Lease Authority</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Subject to paragraph (2), to the extent that the termination or reduction of operations at the Naval Academy dairy farm permit, the Secretary of the Navy may lease the real property containing the dairy farm, and any improvements and personal property thereon, to such persons and under such terms as the Secretary considers appropriate. In leasing any of <page identifier="/us/stat/111/2015">111 STAT. 2015</page>the property, the Secretary may give a preference to persons who will continue dairy operations on the property.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>Any lease of property at the Naval Academy dairy farm shall be subject to a condition that the lessee maintain the rural and agricultural nature of the leased property.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><content>Effect of Other Laws.—Nothing in section 6971 of this title shall be construed to require the Secretary of the Navy or the Superintendent of the Naval Academy to operate a dairy farm for the Naval Academy in Gambrills, Maryland, or any other location.”.</content> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of such chapter is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“6976.</designator> <label>Operation of Naval Academy dairy farm.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Conforming Repeal of Existing Requirements</inline>.—</heading><content>Section 810 of the Military Construction Authorization Act, 1968 (Public Law 90–110; 81 Stat. 309), is repealed.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Other Conforming Amendments</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Section 6971(b)(5) of title 10, United States Code, is amended by inserting “<quotedText>(if any)</quotedText>” before the period at the end.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Section 2105(b) of title 5, United States Code, is amended by inserting “<quotedText>(if any)</quotedText>” after “Academy dairy”.</content></paragraph> </subsection> </section> <section> <num value="2872">SEC. 2872. </num><heading>LONG-TERM LEASE OF PROPERTY, NAPLES, ITALY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Authority</inline>.—</heading><content>Subject to subsection (d), the Secretary of the Navy may acquire by long-term lease structures and real property relating to a regional hospital complex in Naples, Italy, that the Secretary determines to be necessary for purposes of the Naples Improvement Initiative.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Lease Term</inline>.—</heading><content>Notwithstanding section 2675 of title 10, United States Code, the lease authorized by subsection (a) shall be for a term of not more than 20 years.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Expiration of Authority</inline>.—</heading><content>The authority of the Secretary to enter into a lease under subsection (a) shall expire on September 30, 2002.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Authority Contingent on Appropriations Acts</inline>.—</heading><content>The authority of the Secretary to enter into a lease under subsection (a) is available only to the extent or in the amount provided in advance in appropriations Acts.</content> </subsection> </section> <section> <num value="2873">SEC. 2873. </num><heading>DESIGNATION OF MILITARY FAMILY HOUSING AT LACKLAND AIR FORCE BASE, TEXAS, IN HONOR OF FRANK TEJEDA, A FORMER MEMBER OF THE HOUSE OF REPRESENTATIVES.</heading> <chapeau>The military family housing developments to be constructed at two locations on Government property at Lackland Air Force Base, Texas, under the authority of subchapter IV of chapter 169 of title 10, United States Code, shall be designated by the Secretary of the Air Force, at an appropriate time, as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The eastern development shall be designated as “Frank Tejeda Estates East”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The western development shall be designated as “Frank Tejeda Estates West”.</content></paragraph> </section> <section> <num value="2874">SEC. 2874. </num><heading>FIBER-OPTICS BASED TELECOMMUNICATIONS LINKAGE OF MILITARY INSTALLATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Installation Required</inline>.—</heading><content>In at least one metropolitan area of the United States containing multiple military installations of <page identifier="/us/stat/111/2016">111 STAT. 2016</page>one or more military departments or Defense Agencies, the Secretary of Defense shall provide for the installation of fiber-optics based telecommunications technology to link as many of the installations in the area as practicable in a telecommunications network. The Secretary shall use a full and open competitive process, consistent with section 2304 of title 10, United States Code, to provide for the installation of the telecommunications network through one or more new contracts.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Features of Network</inline>.—</heading><content>The telecommunications network shall provide direct access to local and long distance telephone carriers, allow for transmission of both classified and unclassified information, and take advantage of the various capabilities of fiberoptics based telecommunications technology.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Time for Request for Bids or Proposals</inline>.—</heading><content>Not later than March 30, 1998, the Secretary of Defense shall release a final request for bids or proposals to provide the telecommunications network or networks described in subsection (a).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Report on Implementation</inline>.—</heading><content>Not later than December 31, 1998, the Secretary of Defense shall submit to the congressional defense committees a report on the implementation of subsection (c), including the metropolitan area or areas selected for the installation of a fiber-optics based telecommunications network, the current telecommunication costs for the Department of Defense in the selected area or areas, the estimated cost of the fiber-optics based network, and potential areas for the future use of fiber-optics based networks.</content> </subsection> </section> </subtitle> <num value="XXIX">TITLE XXIX—</num><sidenote><p class="indent0 firstIndent0 fontsize8">Sikes Act Improvement Act of 1997.</p><p class="indent0 firstIndent0 fontsize8">Conservation.</p><p class="indent0 firstIndent0 fontsize8">Fish and wildlife.</p></sidenote><heading>SIKES ACT IMPROVEMENT</heading> <toc> <referenceItem role="section"><designator>Sec. 2901.</designator> <label>Short title.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2902.</designator> <label>Definition of Sikes Act for purposes of amendments.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2903.</designator> <label>Codification of short title of Act.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2904.</designator> <label>Preparation of integrated natural resources management plans.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2905.</designator> <label>Review for preparation of integrated natural resources management plans</label></referenceItem> <referenceItem role="section"><designator>Sec. 2906.</designator> <label>Transfer of wildlife conservation fees from closed military installations.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2907.</designator> <label>Annual reviews and reports.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2908.</designator> <label>Cooperative agreements.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2909.</designator> <label>Federal enforcement.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2910.</designator> <label>Natural resources management services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2911.</designator> <label>Definitions.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2912.</designator> <label>Repeal of superseded provision.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2913.</designator> <label>Technical amendments.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2914.</designator> <label>Authorizations of appropriations.</label></referenceItem> </toc> <section> <num value="2901">SEC. 2901. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s670">16 USC 670 note</ref>.</p></sidenote><heading>SHORT TITLE.</heading> <content>This title may be cited as the “Sikes Act Improvement Act of 1997”.</content> </section> <section> <num value="2902">SEC. 2902. </num><heading>DEFINITION OF SIKES ACT FOR PURPOSES OF AMENDMENTS.</heading> <content>In this title, the term “Sikes Act” means the Act entitled “An Act to promote effectual planning, development, maintenance, and coordination of wildlife, fish, and game conservation and rehabilitation in military reservations”, approved September 15, 1960 (16 U.S.C. 670a et seq.), commonly referred to as the “Sikes Act”.</content> </section> <section> <num value="2903">SEC. 2903. </num><heading>CODIFICATION OF SHORT TITLE OF ACT.</heading> <content>The Sikes Act (16 U.S.C. 670a et seq.) is amended by inserting before title I the following new section:<page identifier="/us/stat/111/2017">111 STAT. 2017</page> <quotedContent> <section> <num value="1">“SECTION 1. </num><heading>SHORT TITLE.</heading> <content>“This Act may be cited as the ‘Sikes Act’.”.</content> </section> </quotedContent> </content></section> <section> <num value="2904">SEC. 2904. </num><heading>PREPARATION OF INTEGRATED NATURAL RESOURCES MANAGEMENT PLANS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 101 of the Sikes Act (16 U.S.C. 670a(a)) is amended by striking out subsection (a) and inserting in lieu thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Authority of Secretary of Defense</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">Program</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary of Defense shall carry out a program to provide for the conservation and rehabilitation of natural resources on military installations.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><heading><inline class="smallCaps">Integrated natural resources management plan</inline>.—</heading><content>To facilitate the program, the Secretary of each military department shall prepare and implement an integrated natural resources management plan for each military installation in the United States under the jurisdiction of the Secretary, unless the Secretary determines that the absence of significant natural resources on a particular installation makes preparation of such a plan inappropriate.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">Cooperative preparation</inline>.—</heading><content>The Secretary of a military department shall prepare each integrated natural resources management plan for which the Secretary is responsible in cooperation with the Secretary of the Interior, acting through the Director of the United States Fish and Wildlife Service, and the head of each appropriate State fish and wildlife agency for the State in which the military installation concerned is located. Consistent with paragraph (4), the resulting plan for the military installation shall reflect the mutual agreement of the parties concerning conservation, protection, and management of fish and wildlife resources.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><heading><inline class="smallCaps">Purposes of program</inline>.—</heading><chapeau>Consistent with the use of military installations to ensure the preparedness of the Armed Forces, the Secretaries of the military departments shall carry out the program required by this subsection to provide for—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>the conservation and rehabilitation of natural resources on military installations;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>the sustainable multipurpose use of the resources, which shall include hunting, fishing, trapping, and nonconsumptive uses; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>subject to safety requirements and military security, public access to military installations to facilitate the use.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><heading><inline class="smallCaps">Effect on other law</inline>.—</heading><chapeau>Nothing in this title—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><clause class="inline"><num value="i">(i) </num><content>affects any provision of a Federal law governing the conservation or protection of fish and wildlife resources; or</content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii) </num><content>enlarges or diminishes the responsibility and authority of any State for the protection and management of fish and resident wildlife; or</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>except as specifically provided in the other provisions of this section and in section 102, authorizes the Secretary of a military department to require a Federal license or permit to hunt, fish, or trap on a military installation.”.<page identifier="/us/stat/111/2018">111 STAT. 2018</page></content></subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><chapeau>Title I of the Sikes Act is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in section 101(b)(4) (16 U.S.C. 670a(b)(4)), by striking out “cooperative plan” each place it appears and inserting in lieu thereof “integrated natural resources management plan”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in section 101(c) (16 U.S.C. 670a(c)), in the matter preceding paragraph (1), by striking out “a cooperative plan” and inserting in lieu thereof “an integrated natural resources management plan”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>in section 101(d) (16 U.S.C. 670a(d)), in the matter preceding paragraph (1), by striking out “cooperative plans” and inserting in lieu thereof “integrated natural resources management plans”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>in section 101(e) (16 U.S.C. 670a(e)), by striking out “Cooperative plans” and inserting in lieu thereof “Integrated natural resources management plans”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>in section 102 (16 U.S.C. 670b), by striking out “a cooperative plan” and inserting in lieu thereof “an integrated natural resources management plan”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>in section 103 (16 U.S.C. 670c), by striking out “a cooperative plan” and inserting in lieu thereof “an integrated natural resources management plan”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>in section 106(a) (16 U.S.C. 6701(a)), by striking out “cooperative plans” and inserting in lieu thereof “integrated natural resources management plans”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>in section 106(c) (16 U.S.C. 670f(c)), by striking out “cooperative plans” and inserting in lieu thereof “integrated natural resources management plans”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Required Elements of Plans</inline>.—</heading><chapeau>Section 101(b) of the Sikes Act (16 U.S.C. 670a(b)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out “(b) Each cooperative” and all that follows through the end of paragraph (1) and inserting in lieu thereof the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Required Elements of Plans</inline>.—</heading><chapeau>Consistent with the use of military installations to ensure the preparedness of the Armed Forces, each integrated natural resources management plan prepared under subsection (a)—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><chapeau>shall, to the extent appropriate and applicable, provide for—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>fish and wildlife management, land management, forest management, and fish- and wildlife-oriented recreation;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>fish and wildlife habitat enhancement or modifications;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>wetland protection, enhancement, and restoration, where necessary for support of fish, wildlife, or plants;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>integration of, and consistency among, the various activities conducted under the plan;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E) </num><content>establishment of specific natural resource management goals and objectives and time frames for proposed action;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F) </num><content>sustainable use by the public of natural resources to the extent that the use is not inconsistent with the needs of fish and wildlife resources;<page identifier="/us/stat/111/2019">111 STAT. 2019</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G) </num><content>public access to the military installation that is necessary or appropriate for the use described in subparagraph (F), subject to requirements necessary to ensure safety and military security;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">“(H) </num><content>enforcement of applicable natural resource laws (including regulations);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="I">“(I) </num><content>no net loss in the capability of military installation lands to support the military mission of the installation; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="J">“(J) </num><content>such other activities as the Secretary of the military department determines appropriate;”;</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in paragraph (2), by adding “<quotedText>and</quotedText>” at the end;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by striking out paragraph (3);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>by redesignating paragraph (4) as paragraph (3); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>in paragraph (3)(A) (as so redesignated), by striking out “collect the fees therefor,” and inserting in lieu thereof “collect, spend, administer, and account for fees for the permits,”.</content></paragraph> </subsection> </section> <section> <num value="2905">SEC. 2905. </num><heading>REVIEW FOR PREPARATION OF INTEGRATED NATURAL RESOURCES MANAGEMENT PLANS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s670a">16 USC 670a note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><content>In this section, the terms “military installation” and “United States” have the meanings provided in section 100 of the Sikes Act (as added by section 2911).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Review of Military Installations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Review</inline>.—</heading><chapeau>Not later than 270 days after the date of enactment of this Act, the Secretary of each military department shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>review each military installation in the United States that is under the jurisdiction of that Secretary to determine the military installations for which the preparation of an integrated natural resources management plan under section 101 of the Sikes Act (as amended by this title) is appropriate; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>submit to the Secretary of Defense a report on<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> the determinations.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Report to congress</inline>.—</heading><chapeau>Not later than one year after the date of enactment of this Act, the Secretary of Defense shall submit to Congress a report on the reviews conducted under paragraph (1). The report shall include—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>a list of the military installations reviewed under paragraph (1) for which the Secretary of the appropriate military department determines that the preparation of an integrated natural resources management plan is not appropriate; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>for each of the military installations listed under subparagraph (A), an explanation of each reason such a plan is not appropriate.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><chapeau>Deadline for Integrated Natural Resources Management Plans.—Not later than three years after the date of the submission of the report required under subsection (b)(2), the Secretary of each military department shall, for each military installation with respect to which the Secretary has not determined under subsection (b)(2)(A) that preparation of an integrated natural resources management plan is not appropriate—<page identifier="/us/stat/111/2020">111 STAT. 2020</page></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>prepare and begin implementing such a plan in accordance with section 101(a) of the Sikes Act (as amended by this title); or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in the case of a military installation for which there is in effect a cooperative plan under section 101(a) of the Sikes Act on the day before the date of enactment of this Act, complete negotiations with the Secretary of the Interior and the heads of the appropriate State agencies regarding changes to the plan that are necessary for the plan to constitute an integrated natural resources management plan that complies with that section, as amended by this title.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Public Comment</inline>.—</heading><chapeau>The Secretary of each military department shall provide an opportunity for the submission of public comments on—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>integrated natural resources management plans proposed under subsection (c)(1); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>changes to cooperative plans proposed under subsection (c)(2).</content></paragraph> </subsection> </section> <section> <num value="2906">SEC. 2906. </num><heading>TRANSFER OF WILDLIFE CONSERVATION FEES FROM CLOSED MILITARY INSTALLATIONS.</heading> <content>Section 101(b)(3)(B) of the Sikes Act (16 U.S.C. 670a(b)) (as redesignated by section 2904(c)(4)) is amended by inserting before the period at the end the following: “, unless the military installation is subsequently closed, in which case the fees may be transferred to another military installation to be used for the same purposes”.</content> </section> <section> <num value="2907">SEC. 2907. </num><heading>ANNUAL REVIEWS AND REPORTS.</heading> <content>Section 101 of the Sikes Act (16 U.S.C. 670a) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f) </num><heading><inline class="smallCaps">Reviews and Reports</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">Secretary of defense</inline>.—</heading><chapeau>Not later than March 1 of each year, the Secretary of Defense shall review the extent to which integrated natural resources management plans were prepared or were in effect and implemented in accordance with this title in the preceding year, and submit a report on the findings of the review to the committees. Each report shall include—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>the number of integrated natural resources management plans in effect in the year covered by the report, including the date on which each plan was issued in final form or most recently revised;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>the amounts expended on conservation activities conducted pursuant to the plans in the year covered by the report; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>an assessment of the extent to which the plans comply with this title.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">Secretary of the interior</inline>.—</heading><content>Not later than March 1 of each year and in consultation with the heads of State fish and wildlife agencies, the Secretary of the Interior shall submit a report to the committees on the amounts expended by the Department of the Interior and the State fish and wildlife agencies in the year covered by the report on conservation activities conducted pursuant to integrated natural resources management plans.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><heading><inline class="smallCaps">Definition of committees</inline>.—</heading><chapeau>In this subsection, the term ‘committees’ means—<page identifier="/us/stat/111/2021">111 STAT. 2021</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>the Committee on Resources and the Committee on National Security of the House of Representatives; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>the Committee on Armed Services and the Committee on Environment and Public Works of the Senate.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></section> <section> <num value="2908">SEC. 2908 </num><heading>COOPERATIVE AGREEMENTS.</heading> <chapeau>Section 103a of the Sikes Act (16 U.S.C. 670c–1) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subsection (a), by striking out “Secretary of Defense” and inserting in lieu thereof “Secretary of a military department”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking out subsection (b) and inserting in lieu thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Multiyear Agreements</inline>.—</heading><content>Funds appropriated to the Department of Defense for a fiscal year may be obligated to cover the cost of goods and services provided under a cooperative agreement entered into under subsection (a) or through an agency agreement under section 1535 of title 31, United States Code, during any 18-month period beginning in that fiscal year, without regard to whether the agreement crosses fiscal years.”.</content> </subsection> </quotedContent> </content></paragraph> </section> <section> <num value="2909">SEC. 2909. </num><heading>FEDERAL ENFORCEMENT.</heading> <chapeau>Title I of the Sikes Act is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by redesignating section 106 (16 U.S.C. 670f) as section 108; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting after section 105 (16 U.S.C. 670e) the following new section: <quotedContent> <section> <num value="106">“SEC. 106. </num><heading>FEDERAL ENFORCEMENT OF OTHER LAWS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s670e–1">16 USC 670e–1</ref></p></sidenote> <content>“All Federal laws relating to the management of natural resources on Federal land may be enforced by the Secretary of Defense with respect to violations of the laws that occur on military installations within the United States.”.</content> </section> </quotedContent> </content></paragraph> </section> <section> <num value="2910">SEC. 2910. </num><heading>NATURAL RESOURCES MANAGEMENT SERVICES.</heading> <content>Title I of the Sikes Act is amended by inserting after section 106 (as added by section 2909) the following new section: <quotedContent> <section> <num value="107">“SEC. 107. </num><heading>NATURAL RESOURCES MANAGEMENT SERVICES.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s670e–2">16 USC 670e–2</ref>.</p></sidenote> <content>“To the extent practicable using available resources, the Secretary of each military department shall ensure that sufficient numbers of professionally trained natural resources management personnel and natural resources law enforcement personnel are available and assigned responsibility to perform tasks necessary to carry out this title, including the preparation and implementation of integrated natural resources management plans.”.</content> </section> </quotedContent> </content></section> <section> <num value="2911">SEC. 2911. </num><heading>DEFINITIONS.</heading> <content>Title I of the Sikes Act is amended by inserting before section 101 (16 U.S.C. 670a) the following new section: <quotedContent> <section> <num value="100">“SEC. 100. </num><heading>DEFINITIONS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s670">16 USC 670</ref>.</p></sidenote> <chapeau>“In this title:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">Military installation</inline>.—</heading><chapeau>The term ‘military installation’—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>means any land or interest in land owned by the United States and administered by the Secretary of Defense or the Secretary of a military department, except <page identifier="/us/stat/111/2022">111 STAT. 2022</page>land under the jurisdiction of the Assistant Secretary of the Army having responsibility for civil works;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>includes all public lands withdrawn from all forms of appropriation under public land laws and reserved for use by the Secretary of Defense or the Secretary of a military department; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>does not include any land described in subparagraph (A) or (B) that is subject to an approved recommendation for closure under the Defense Base Closure and Realignment Act of 1990 (part A of title XXIX of Public Law 101–510; 10 U.S.C. 2687 note).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">State fish and wildlife agency</inline>.—</heading><content>The term ‘State fish and wildlife agency’ means the one or more agencies of State government that are responsible under State law for managing fish or wildlife resources.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><heading><inline class="smallCaps">United states</inline>.—</heading><content>The term ‘United States’ means the States, the District of Columbia, and the territories and possessions of the United States.”.</content></paragraph> </section> </quotedContent> </content></section> <section> <num value="2912">SEC. 2912. </num><heading>REPEAL OF SUPERSEDED PROVISION.</heading> <content>Section 2 of the Act of October 27, 1986 (Public Law 99561; 16 U.S.C. 670a–1), is repealed.</content> </section> <section> <num value="2913">SEC. 2913. </num><heading>TECHNICAL AMENDMENTS.</heading> <chapeau>Title I of the Sikes Act, as amended by this title, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in the heading for the title, by striking out “MILITARY RESERVATIONS” and inserting in lieu thereof “MILITARY INSTALLATIONS”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>in section 101(b)(3) (16 U.S.C. 670a(b)(3)), as redesignated by section 2904(c)(4)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>in subparagraph (A), by striking out “the reservation” and inserting in lieu thereof “the installation”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>in subparagraph (B), by striking out “the military reservation” and inserting in lieu thereof “the military installation”;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><chapeau>in section 101(c) (16 U.S.C. 670a(c))—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>in paragraph (1), by striking out “a military reservation” and inserting in lieu thereof “a military installation”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>in paragraph (2), by striking out “the reservation” and inserting in lieu thereof “the installation”;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>in section 101(e) (16 U.S.C. 670a(e)), by striking “<quotedText>the Federal Grant and Cooperative Agreement Act of 1977 (41 U.S.C. 501 et seq.)</quotedText>” and inserting “<quotedText>chapter 63 of title 31, United States Code</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>in section 102 (16 U.S.C. 670b), by striking out “military reservations” and inserting in lieu thereof “military installations”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><chapeau>in section 103 (16 U.S.C. 670c)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking out “military reservations” and inserting in lieu thereof “military installations”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking out “such reservations” and inserting in lieu thereof “the installations”.</content></subparagraph> </paragraph> </section> <section> <num value="2914">SEC. 2914. </num><heading>AUTHORIZATIONS OF APPROPRIATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Conservation Programs on Military Installations</inline>.—</heading><content>Subsections (b) and (c) of section 108 of the Sikes Act (as redesignated by section 2909(1)) are each amended by striking out “1983” <page identifier="/us/stat/111/2023">111 STAT. 2023</page>and all that follows through “1993,” and inserting in lieu thereof “1998 through 2003,”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Conservation Programs on Public Lands</inline>.—</heading><chapeau>Section 209 of the Sikes Act (16 U.S.C. 670o) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subsection (a), by striking out “the sum of $10,000,000” and all that follows through “to enable the Secretary of the Interior” and inserting in lieu thereof “$4,000,000 for each of fiscal years 1998 through 2003, to enable the Secretary of the Interior”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in subsection (b), by striking out “the sum of $12,000,000” and all that follows through “to enable the Secretary of Agriculture” and inserting in lieu thereof “$5,000,000 for each of fiscal years 1998 through 2003, to enable the Secretary of Agriculture”.</content></paragraph> </subsection> </section> DIVISION C—DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND OTHER AUTHORIZATIONS <num value="XXXI">TITLE XXXI—</num><heading>DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS</heading> <toc> <referenceItem role="subtitle"><designator>Subtitle A—</designator><label>National Security Programs Authorizations</label></referenceItem> <referenceItem role="section"><designator>Sec. 3101.</designator> <label>Weapons activities.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3102.</designator> <label>Environmental restoration and waste management.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3103.</designator> <label>Other defense activities.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3104.</designator> <label>Defense nuclear waste disposal.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle B—</designator><label>Recurring General Provisions</label></referenceItem> <referenceItem role="section"><designator>Sec. 3121.</designator> <label>Reprogramming.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3122.</designator> <label>Limits on general plant projects.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3123.</designator> <label>Limits on construction projects.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3124.</designator> <label>Fund transfer authority.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3125.</designator> <label>Authority for conceptual and construction design.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3126.</designator> <label>Authority for emergency planning, design, and construction activities.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3127.</designator> <label>Funds available for all national security programs of the Department of Energy.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3128.</designator> <label>Availamiity of funds.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3129.</designator> <label>Transfers of defense environmental management funds.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle C—</designator><label>Program Authorizations, Restrictions, and Limitations</label></referenceItem> <referenceItem role="section"><designator>Sec. 3131.</designator> <label>Memorandum of understanding for use of national laboratories for ballistic missile defense programs.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3132.</designator> <label>Defense environmental management privatization projects.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3133.</designator> <label>International cooperative stockpile stewardship.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3134.</designator> <label>Modernization or enduring nuclear weapons complex.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3135.</designator> <label>Tritium production.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3136.</designator> <label>Processing, treatment, and disposition of spent nuclear fuel rods and other legacy nuclear materials at the Savannah River Site.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3137.</designator> <label>Limitations on use of funds for laboratory directed research and development purposes.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3138.</designator> <label>Pilot program relating to use of proceeds of disposal or utilization of certain Department of Energy assets.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3139.</designator> <label>Modification and extension of authority relating to appointment of certain scientific, engineering, and technical personnel.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3140.</designator> <label>Limitation on use of funds for subcritical nuclear weapons tests.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3141.</designator> <label>Limitation on use of certain funds until future use plans are submitted.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle D—</designator><label>Other Matters</label></referenceItem> <referenceItem role="section"><designator>Sec. 3151.</designator> <label>Plan for stewardship, management, and certification of warheads in the nuclear weapons stockpile.<page identifier="/us/stat/111/2024">111 STAT. 2024</page></label></referenceItem> <referenceItem role="section"><designator>Sec. 3152.</designator> <label>Repeal of obsolete reporting requirements.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3153.</designator> <label>Study and funding relating to implementation of workforce restructuring plans.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3154.</designator> <label>Report and plan for external oversight of national laboratories.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3155.</designator> <label>University-based research collaboration program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3156.</designator> <label>Stockpile stewardship program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3157.</designator> <label>Reports on advanced supercomputer sales to certain foreign nations.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3158.</designator> <label>Transfers of real property at certain Department of Energy facilities</label></referenceItem> <referenceItem role="section"><designator>Sec. 3159.</designator> <label>Requirement to delegate certain authorities to site manager of Hanford Reservation.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3160.</designator> <label>Submittal of biennial waste management reports.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3161.</designator> <label>Department of Energy Security Management Board.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3162.</designator> <label>Submittal of annual report on status of security functions at nuclear weapons facilities.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3163.</designator> <label>Modification of authority on Commission on Maintaining United States Nuclear Weapons Expertise.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3164.</designator> <label>Land transfer, Bandelier National Monument.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3165.</designator> <label>Final settlement of Department of Energy community assistance obligations with respect to Los Alamos National Laboratory, New Mexico.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3166.</designator> <label>Sense of Congress regarding the Y–12 Plant in Oak Ridge, Tennessee.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3167.</designator> <label>Support for public education in the vicinity of Los Alamos National Laboratory, New Mexico.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3168.</designator> <label>Improvements to Greenville Road, Livermore, California.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3169.</designator> <label>Report on alternative system for availability of funds.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3170.</designator> <label>Report on remediation under the Formerly Utilized Sites Remedial Action Program.</label></referenceItem> </toc> <subtitle> <num value="A">Subtitle A—</num><heading>National Security Programs Authorizations</heading> <section> <num value="3101">SEC. 3101. </num><heading>WEAPONS ACTIVITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Stockpile Stewardship</inline>.—</heading><chapeau>Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 1998 for stockpile stewardship in carrying out weapons activities necessary for national security programs in the amount of $1,867,150,000, to be allocated as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>For core stockpile stewardship, $1,387,100,000, to be allocated as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>For operation and maintenance, $1,288,290,000.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>For plant projects (including maintenance, restoration, planning, construction, acquisition, modification of facilities, and the continuation of projects authorized in prior years, and land acquisition related thereto), $98,810,000, to be allocated as follows: <list> <listItem><listContent class="indent1 fontsize10 depth0">Project 97–D–102, dual-axis radiographic hydrotest facility, Los Alamos National Laboratory, Los Alamos, New Mexico, $46,300,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 96–D–102, stockpile stewardship facilities revitalization, Phase VI, various locations, $19,810,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 96–D–103, ATLAS, Los Alamos National Laboratory, Los Alamos, New Mexico, $13,400,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 96–D–105, contained firing facility addition, Lawrence Livermore National Laboratory, Livermore, California. $19,300,000.</listContent></listItem> </list></content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>For inertial fusion, $414,800,000, to be allocated as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>For operation and maintenance, $217,000,000.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>For the following plant project (including maintenance, restoration, planning, construction, acquisition, and modification of facilities, and land acquisition related thereto), $197,800,000, to be allocated as follows: <page identifier="/us/stat/111/2025">111 STAT. 2025</page> <list> <listItem><listContent class="indent1 fontsize10 depth0">Project 96–D–111, national ignition facility, location to be determined, $197,800,000.</listContent></listItem> </list></content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><chapeau>For technology transfer and education, $65,250,000, to be allocated as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>For technology transfer, $56,250,000.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>For education, $9,000,000.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Stockpile Management</inline>.—</heading><chapeau>Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 1998 for stockpile management in carrying out weapons activities necessary for national security programs in the amount of $2,052,150,000, to be allocated as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>For operation and maintenance, $1,891,265,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>For plant projects (including maintenance, restoration, planning, construction, acquisition, modification of facilities, and the continuation of projects authorized in prior years, and land acquisition related thereto), $160,885,000, to be allocated as follows: <list> <listItem><listContent class="indent1 fontsize10 depth0">Project 98–D–123, stockpile management restructuring initiative, tritium factory modernization and consolidation, Savannah River Site, Aiken, South Carolina, $11,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 98–D–124, stockpile management restructuring initiative, Y–12 Plant consolidation, Oak Ridge, Tennessee, $6,450,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 98–D–125, tritium extraction facility, Savannah River Site, Aiken, South Carolina, $9,650,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 98–D–126, accelerator production of tritium, various locations, $67,865,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 97–D–122, nuclear materials storage facility renovation, Los Alamos National Laboratory, Los Alamos, New Mexico, $9,200,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 97–D–124, steam plant wastewater treatment facility upgrade, Y–12 Plant, Oak Ridge, Tennessee, $1,900,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 96–D–122, sewage treatment quality upgrade (STQU), Pantex Plant, Amarulo, Texas, $6,900,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 96–D–123, retrofit heating, ventilation, and air conditioning and chillers for ozone protection, Y–12 Plant, Oak Ridge, Tennessee, $2,700,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 95–D–102, chemistry and metallurgy research (CMR) upgrades project, Los Alamos National Laboratory, Los Alamos, New Mexico, $5,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 95–D–122, sanitary sewer upgrade, Y–12 Plant, Oak Ridge, Tennessee, $12,600,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 94–D–124, hydrogen fluoride supply system, Y–12 Plant, Oak Ridge, Tennessee, $1,400,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 94–D–125, upgrade life safety, Kansas City Plant, Kansas City, Missouri, $2,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 93–D–122, life safety upgrades, Y–12 Plant, Oak Ridge, Tennessee, $2,100,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 92–D–126, replace emergency notification system, various locations, $3,200,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 88–D–122, facilities capability assurance program, various locations, $18,920,000.</listContent></listItem> </list></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Program Direction</inline>.—</heading><content>Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 1998 for program direction in carrying out weapons activities necessary for national security programs in the amount of $250,000,000.<page identifier="/us/stat/111/2026">111 STAT. 2026</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Adjustment</inline>.—</heading><content>The total amount authorized to be appropriated pursuant to this section is the sum of the amounts authorized to be appropriated in subsections (a) through (c) reduced by $22,608,000.</content> </subsection> </section> <section> <num value="3102">SEC. 3102. </num><heading>ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Environmental Restoration</inline>.—</heading><content>Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 1998 for environmental restoration in carrying out environmental restoration and waste management activities necessary for national security programs in the amount of $1,010,973,000, of which $388,000,000 shall be allocated to the uranium enrichment decontamination and decommissioning fund.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Defense Environmental Management Closure Projects</inline>.—</heading><content>Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 1998 for closure projects in carrying out environmental restoration and waste management activities necessary for national security programs in the amount of $875,000,000, to be allocated as follows: <list> <listItem><listContent class="indent1 fontsize10 depth0">Project 98–CLR–l, Rocky Flats Closure Site, Denver, Colorado, $648,400,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 98–CLR–2, Fernald Environmental Management Project, Fernald, Ohio, $226,600,000.</listContent></listItem> </list> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Waste Management</inline>.—</heading><chapeau>Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 1998 for waste management in carrying out environmental restoration and waste management activities necessary for national security programs in the amount of $1,571,644,000, to be allocated as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>For operation and maintenance, $1,490,876,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>For plant projects (including maintenance, restoration, planning, construction, acquisition, modification of facilities, and the continuation of projects authorized in prior years, and land acquisition related thereto), $80,768,000, to be allocated as follows: <list> <listItem><listContent class="indent1 fontsize10 depth0">Project 98–D–401, H-tank farm storm water systems upgrade, Savannah River Site, Aiken, South Carolina, $1,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 97–D–402, tank farm restoration and safe operations, Richland, Washington, $13,961,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 96–D–408, waste management upgrades, various locations, $8,200,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 95–D–402, install permanent electrical service, Waste Isolation Pilot Plant, Carlsbad, New Mexico, $176,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 95–D–405, industrial landfill V and construction/demolition landfill VII, Y–12 Plant, Oak Ridge, Tennessee, $3,800,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 95–D–407, 219–S secondary containment upgrade, Richland, Washington, $2,500,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 94–D–404, Melton Valley storage tank capacity increase, Oak Ridge National Laboratory, Oak Ridge, Tennessee, $1,219,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 94–D–407, initial tank retrieval systems, Richland, Washington, $15,100,000.<page identifier="/us/stat/111/2027">111 STAT. 2027</page></listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 93–D–187, high-level waste removal from filled waste tanks, Savannah River Site, Aiken, South Carolina, $17,520,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 92–D–172, hazardous waste treatment and processing facility, Pantex Plant, Amarillo, Texas, $5,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 89–D–174, replacement high-level waste evaporator, Savannah River Site, Aiken, South Carolina, $1,042,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 86–D–103, decontamination and waste treatment facility, Lawrence Livermore National Laboratory, Livermore, California, $11,250,000.</listContent></listItem> </list></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Technology Development</inline>.—</heading><content>Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 1998 for technology development in carrying out environmental restoration and waste management activities necessary for national security programs in the amount of $220,000,000.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Nuclear Materials and Facilities Stabilization</inline>.—</heading><chapeau>Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 1998 for nuclear materials and facilities stabilization in carrying out environmental restoration and waste management activities necessary for national security programs in the amount of $1,256,821,000, to be allocated as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>For operation and maintenance, $1,176,114,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>For plant projects (including maintenance, restoration, planning, construction, acquisition, modification of facilities, and the continuation of projects authorized in prior years, and land acquisition related thereto), $80,707,000, to be allocated as follows: <list> <listItem><listContent class="indent1 fontsize10 depth0">Project 98–D–453, plutonium stabilization and handling system for plutonium finishing plant, Richland, Washington, $8,136,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 98–D–700, road rehabilitation, Idaho National Engineering Laboratory, Idaho, $500,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 97–D–450, actinide packaging and storage facility, Savannah River Site, Aiken, South Carolina, $18,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 97–D–451, B-Plant safety class ventilation upgrades, Richland, Washington, $2,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 97–D–470, environmental monitoring laboratory/health physics site support facility, Savannah River Site, Aiken, South Carolina, $5,600,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 96–D–406, spent nuclear fuels canister storage and stabilization facility, Richland, Washington, $16,744,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 96–D–461, electrical distribution upgrade, Idaho National Engineering Laboratory, Idaho, $2,927,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 96–D–464, electrical and utility systems upgrade, Idaho Chemical Processing Plant, Idaho National Engineering Laboratory, Idaho, $14,985,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 96–D–471, chlorofluorocarbon heating, ventilation, and air conditioning and chiller retrofit, Savannah River Site, Aiken, South Carolina, $8,500,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 95–D–155, upgrade site road infrastructure, Savannah River Site, South Carolina, $2,713,000.<page identifier="/us/stat/111/2028">111 STAT. 2028</page></listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 95–D–456, security facilities consolidation, Idaho Chemical Processing Plant, Idaho National Engineering Laboratory, Idaho, $602,000.</listContent></listItem> </list></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Program Direction</inline>.—</heading><content>Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 1998 for program direction in carrying out environmental restoration and waste management activities necessary for national security programs in the amount of $345,751,000.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num><heading><inline class="smallCaps">Policy and Management</inline>.—</heading><content>Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 1998 for policy and management in carrying out environmental restoration and waste management activities necessary for national security programs in the amount of $20,000,000.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h) </num><heading><inline class="smallCaps">Environmental Science Program</inline>.—</heading><content>Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 1998 for the environmental science program in carrying out environmental restoration and waste management activities necessary for national security programs in the amount of $55,000,000.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="i">(i) </num><heading><inline class="smallCaps">Defense Environmental Management Privatization</inline>.—</heading><content>Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 1998 for environmental management privatization projects in carrying out environmental restoration and waste management activities necessary for national security programs in the amount of $224,700,000, to be allocated as follows: <list> <listItem><listContent class="indent1 fontsize10 depth0">Project 98–PVT–1, contact handled transuranic waste transportation, Carlsbad, New Mexico, $21,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 98–PVT–2, spent nuclear fuel dry storage, Idaho Falls, Idaho, $27,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 98–PVT–3, waste pits remedial action, Fernald, Ohio, $25,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 98–PVT–4, spent nuclear fuel transfer and storage, Savannah River, South Carolina, $25,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 98–PVT–5, waste disposal, Oak Ridge, Tennessee, $5,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 98–PVT–6, Ohio silo 3 waste treatment, Fernald, Ohio, $6,700,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 97–PVT–1, tank waste remediation system phase 1, Hanford, Washington, $115,000,000.</listContent></listItem> </list> </content></subsection> <subsection class="indent0 fontsize10"> <num value="j">(j) </num><heading><inline class="smallCaps">Adjustment</inline>.—</heading><content>The total amount authorized to be appropriated pursuant to this section for subsections (a) through (h) is the sum of the amounts authorized to be appropriated in those subsections reduced by $50,000,000.</content> </subsection> </section> <section> <num value="3103">SEC. 3103. </num><heading>OTHER DEFENSE ACTIVITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 1998 for other defense activities in carrying out programs necessary for national security in the amount of $1,642,310,000, to be allocated as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>For verification and control technology, $478,200,000, to be allocated as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>For nonproliferation and verification research and development, $210,000,000.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>For arms control, $234,600,000.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>For intelligence, $33,600,000.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>For nuclear safeguards and security, $47,200,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>For security investigations, $25,000,000.<page identifier="/us/stat/111/2029">111 STAT. 2029</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>For emergency management, $20,000,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>For program direction, $78,900,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><chapeau>For worker and community transition assistance, $61,159,000, to be allocated as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>For worker and community transition, $57,659,000.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>For program direction, $3,500,000.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><chapeau>For fissile materials control and disposition, $103,451,000, to be allocated as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>For operation and maintenance, $99,451,000.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>For program direction, $4,000,000.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><chapeau>For environment, safety, and health, defense, $94,000,000, to be allocated as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>For the Office of Environment, Safety, and Health (Defense), $74,000,000.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>For program direction, $20,000,000.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><content>For the Office of Hearings and Appeals, $1,900,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10) </num><chapeau>For nuclear energy, $47,000,000, to be allocated as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>For nuclear technology research and development (electrometallurgical), $12,000,000.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>For international nuclear safety (Soviet-designed reactors), $35,000,000.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="11">(11) </num><chapeau>For naval reactors development, $670,500,000, to be allocated as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>For operation and maintenance, $635,920,000.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>For program direction, $20,080,000.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>For plant projects (including maintenance, restoration, planning, construction, acquisition, modification of facilities, and the continuation of projects authorized in prior years, and land acquisition related thereto), $14,500,000, to be allocated as follows: <list> <listItem><listContent class="indent1 fontsize10 depth0">Project 98–D–200, site laboratory/facility upgrade, various locations, $5,700,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 97–D–201, advanced test reactor secondary coolant refurbishment, Idaho National Engineering Laboratory, Idaho, $4,600,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 95–D–200, laboratory systems and hot cell upgrades, various locations, $1,100,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">Project 90–N–102, expended core facility dry cell project, Naval Reactors Facility, Idaho, $3,100,000.</listContent></listItem> </list></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="12">(12) </num><content>For independent assessment of Department of Energy projects, $15,000,000.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Adjustment</inline>.—</heading><content>The total amount authorized to be appropriated pursuant to this section is the sum of the amounts authorized to be appropriated in paragraphs (1) through (12) of subsection (a) reduced by $6,047,000.</content> </subsection> </section> <section> <num value="3104">SEC. 3104. </num><heading>DEFENSE NUCLEAR WASTE DISPOSAL.</heading> <content>Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 1998 for payment to the Nuclear Waste Fund established in section 302(c) of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222(c)) in the amount of $190,000,000.<page identifier="/us/stat/111/2030">111 STAT. 2030</page></content> </section> </subtitle> <subtitle> <num value="B">Subtitle B—</num><heading>Recurring General Provisions</heading> <section> <num value="3121">SEC. 3121. </num><heading>REPROGRAMMING.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Until the Secretary of Energy submits to the congressional defense committees the report referred to in subsection (b) and a period of 30 days has elapsed after the date on which such committees receive the report, the Secretary may not use amounts appropriated pursuant to this title for any program—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>in amounts that exceed, in a fiscal year—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>110 percent of the amount authorized for that program by this title; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>$1,000,000 more than the amount authorized for that program by this title; or</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>which has not been presented to, or requested of, Congress.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Report</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The report referred to in subsection (a) is a report containing a full and complete statement of the action proposed to be taken and the facts and circumstances relied upon in support of such proposed action.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>In the computation of the 30-day period under subsection (a), there shall be excluded any day on which either House of Congress is not in session because of an adjournment of more than 3 days to a day certain.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Limitations</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>In no event may the total amount of funds obligated pursuant to this title exceed the total amount authorized to be appropriated by this title.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Funds appropriated pursuant to this title may not be used for an item for which Congress has specifically denied funds.</content></paragraph> </subsection> </section> <section> <num value="3122">SEC. 3122. </num><heading>LIMITS ON GENERAL PLANT PROJECTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>The Secretary of Energy may carry out any construction project under the general plant projects authorized by this title if the total estimated cost of the construction project does not exceed $5,000,000.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Report to Congress</inline>.—</heading><content>If, at any time during the construction of any general plant project authorized by this title, the estimated cost of the project is revised because of unforeseen cost variations and the revised cost of the project exceeds $5,000,000, the Secretary shall immediately furnish a complete report to the congressional defense committees explaining the reasons for the cost variation.</content> </subsection> </section> <section> <num value="3123">SEC. 3123. </num><heading>LIMITS ON CONSTRUCTION PROJECTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>Except as provided in paragraph (2), construction on a construction project may not be started or additional obligations incurred in connection with the project above the total estimated cost, whenever the current estimated cost of the construction project, which is authorized by section 3101, 3102, or 3103, or which is in support of national security programs of the Department of Energy and was authorized by any previous Act, exceeds by more than 25 percent the higher of—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>the amount authorized for the project; or</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>the amount of the total estimated cost for the project as shown in the most recent budget justification data submitted to Congress.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>An action described in paragraph (1) may be taken if—<page identifier="/us/stat/111/2031">111 STAT. 2031</page></chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>the Secretary of Energy has submitted to the congressional defense committees a report on the actions and the circumstances making such action necessary; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>a period of 30 days has elapsed after the date on which the report is received by the committees.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><content>In the computation of the 30-day period under paragraph (2), there shall be excluded any day on which either House of Congress is not in session because of an adjournment of more than 3 days to a day certain.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Exception</inline>.—</heading><content>Subsection (a) shall not apply to any construction project which has a current estimated cost of less than $5,000,000.</content> </subsection> </section> <section> <num value="3124">SEC. 3124. </num><heading>FUND TRANSFER AUTHORITY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Transfer to Other Federal Agencies</inline>.—</heading><content>The Secretary of Energy may transfer funds authorized to be appropriated to the Department of Energy pursuant to this title to other Federal agencies for the performance of work for which the funds were authorized. Funds so transferred may be merged with and be available for the same purposes and for the same period as the authorizations of the Federal agency to which the amounts are transferred.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Transfer Within Department of Energy</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Subject to paragraph (2), the Secretary of Energy may transfer funds authorized to be appropriated to the Department of Energy pursuant to this title between any such authorizations. Amounts of authorizations so transferred may be merged with and be available for the same purposes and for the same period as the authorization to which the amounts are transferred.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Not more than five percent of any such authorization may be transferred between authorizations under paragraph (1). No such authorization may be increased or decreased by more than five percent by a transfer under such paragraph.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Limitation</inline>.—</heading><chapeau>The authority provided by this section to transfer authorizations—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>may only be used to provide funds for items relating to activities necessary for national security programs that have a higher priority than the items from which the funds are transferred; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>may not be used to provide funds for an item for which Congress has specifically denied funds.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Notice to Congress</inline>.—</heading><content>The Secretary of Energy shall promptly notify the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives of any transfer of funds to or from authorizations under this title.</content> </subsection> </section> <section> <num value="3125">SEC. 3125. </num><heading>AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION DESIGN.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Requirement for Conceptual Design</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Subject to paragraph (2) and except as provided in paragraph (3), before submitting to Congress a request for funds for a construction project that is in support of a national security program of the Department of Energy, the Secretary of Energy shall complete a conceptual design for that project.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>If the estimated cost of completing a conceptual design for a construction project exceeds $3,000,000, the Secretary shall submit to Congress a request for funds for the conceptual design before submitting a request for funds for the construction project.<page identifier="/us/stat/111/2032">111 STAT. 2032</page></content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><chapeau>The requirement in paragraph (1) does not apply to a request for funds—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>for a construction project the total estimated cost of which is less than $5,000,000; or</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>for emergency planning, design, and construction activities under section 3126.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Authority for Construction Design</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Within the amounts authorized by this title, the Secretary of Energy may carry out construction design (including architectural and engineering services) in connection with any proposed construction project if the total estimated cost for such design does not exceed $600,000.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>If the total estimated cost for construction design in connection with any construction project exceeds $600,000, funds for such design must be specifically authorized by law.</content></paragraph> </subsection> </section> <section> <num value="3126">SEC. 3126. </num><heading>AUTHORITY FOR EMERGENCY PLANNING, DESIGN, AND CONSTRUCTION ACTIVITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Authority</inline>.—</heading><content>The Secretary of Energy may use any funds available to the Department of Energy pursuant to an authorization in this title, including those funds authorized to be appropriated for advance planning and construction design under sections 3101, 3102, and 3103, to perform planning, design, and construction activities for any Department of Energy national security program construction project that, as determined by the Secretary, must proceed expeditiously in order to protect public health and safety, to meet the needs of national defense, or to protect property.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Limitation</inline>.—</heading><content>The Secretary may not exercise the authority under subsection (a) in the case of any construction project until the Secretary has submitted to the congressional defense committees a report on the activities that the Secretary intends to carry out under this section and the circumstances making such activities necessary.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Specific Authority</inline>.—</heading><content>The requirement of section 3125(b)(2) does not apply to emergency planning, design, and construction activities conducted under this section.</content> </subsection> </section> <section> <num value="3127">SEC. 3127. </num><heading>FUNDS AVAILABLE FOR ALL NATIONAL SECURITY PROGRAMS OF THE DEPARTMENT OF ENERGY.</heading> <content>Subject to the provisions of appropriations Acts and section 3121, amounts appropriated pursuant to this title for management and support activities and for general plant projects are available for use, when necessary, in connection with all national security programs of the Department of Energy.</content> </section> <section> <num value="3128">SEC. 3128. </num><heading>AVAILABILITY OF FUNDS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>Except as provided in subsection (b), when so specified in an appropriations Act, amounts appropriated for operation and maintenance or for plant projects may remain available until expended.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><content>Exception for Program Direction Funds.—Amounts appropriated for program direction pursuant to an authorization of appropriations in subtitle A shall remain available to be expended only until the end of fiscal year 2000.</content> </subsection> </section> <section> <num value="3129">SEC. 3129. </num><heading>TRANSFERS OF DEFENSE ENVIRONMENTAL MANAGEMENT FUNDS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Transfer Authority for Defense Environmental Management Funds</inline>.—</heading><content>The Secretary of Energy shall provide the <page identifier="/us/stat/111/2033">111 STAT. 2033</page>manager of each field office of the Department of Energy with the authority to transfer defense environmental management funds from a program or project under the jurisdiction of the office to another such program or project.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Limitations</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Only one transfer may be made to or from any program or project under subsection (a) in a fiscal year.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The amount transferred to or from a program or project under subsection (a) may not exceed $5,000,000 in a fiscal year.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><content>A transfer may not be carried out by a manager of a field office under subsection (a) unless the manager determines that the transfer is necessary to address a risk to health, safety, or the environment or to assure the most efficient use of defense environmental management funds at the field office.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="4">(4) </num><content>Funds transferred pursuant to subsection (a) may not be used for an item for which Congress has specifically denied funds or for a new program or project that has not been authorized by Congress.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Exemption From Reprogramming Requirements</inline>.—</heading><content>The requirements of section 3121 shall not apply to transfers of funds pursuant to subsection (a).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Notification</inline>.—</heading><content>The Secretary, acting through the Assistant Secretary of Energy for Environmental Management, shall notify Congress of any transfer of funds pursuant to subsection (a) not later than 30 days after such transfer occurs.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>In this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>The term “program or project” means, with respect to a field office of the Department of Energy, any of the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>A project listed in subsection (c) or (e) of section 3102 being carried out by the office.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>A program referred to in subsection (a), (c), (d), or (e) of section 3102 being carried out by the office.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>A project or program not described in subparagraph (A) or (B) that is for environmental restoration or waste management activities necessary for national security programs of the Department, that is being carried out by the office, and for which defense environmental management funds have been authorized and appropriated before the date of enactment of this Act.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The term “defense environmental management funds” means funds appropriated to the Department of Energy pursuant to an authorization for carrying out environmental restoration and waste management activities necessary for national security programs.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Duration of Authority</inline>.—</heading><content>The managers of the field offices of the Department may exercise the authority provided under subsection (a) during the period beginning on October 1, 1997, and ending on September 30, 1998.<page identifier="/us/stat/111/2034">111 STAT. 2034</page></content> </subsection> </section> </subtitle> <subtitle> <num value="C">Subtitle C—</num><heading>Program Authorizations, Restrictions, and Limitations</heading> <section> <num value="3131">SEC. 3131. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2431">10 USC 2431 note</ref>.</p></sidenote><heading>MEMORANDUM OF UNDERSTANDING FOR USE OF NATIONAL LABORATORIES FOR BALLISTIC MISSILE DEFENSE PROGRAMS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Memorandum of Understanding</inline>.—</heading><content>The Secretary of Energy and the Secretary of Defense shall enter into a memorandum of understanding for the purpose of improving and facilitating the use by the Secretary of Defense of the expertise of the national laboratories for the ballistic missile defense programs of the Department of Defense.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Assistance</inline>.—</heading><content>The memorandum of understanding shall provide that the Secretary of Defense shall request such assistance with respect to the ballistic missile defense programs of the Department of Defense as the Secretary of Defense and the Secretary of Energy determine can be provided through the technical skills and experience of the national laboratories, using such financial arrangements as the Secretaries determine are appropriate.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Activities</inline>.—</heading><content>The memorandum of understanding shall provide that the national laboratories shall carry out those activities necessary to respond to requests for assistance from the Secretary of Defense referred to in subsection (b). Such activities may include the identification of technical modifications and test techniques, the analysis of physics problems, the consolidation of range and test activities, and the analysis and simulation of theater missile defense deployment problems.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">National Laboratories</inline>.—</heading><chapeau>For purposes of this section, the national laboratories are—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the Lawrence Livermore National Laboratory, Livermore, California;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the Los Alamos National Laboratory, Los Alamos, New Mexico; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>the Sandia National Laboratories, Albuquerque, New Mexico.</content></paragraph> </subsection> </section> <section> <num value="3132">SEC. 3132. </num><heading>DEFENSE ENVIRONMENTAL MANAGEMENT PRIVATIZATION PROJECTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Authority To Enter Into Contracts</inline>.—</heading><chapeau>The Secretary of Energy may, using funds authorized to be appropriated by section 3102(1) for a project referred to in that section, enter into a contract that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>is awarded on a competitive basis;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>requires the contractor to construct or acquire any equipment or facilities required to carry out the contract;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>requires the contractor to bear any of the costs of the construction, acquisition, and operation of such equipment or facilities that arise before the commencement of the provision of goods or services under the contract; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>provides for payment to the contractor under the contract only upon the meeting of performance specifications in the contract.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Notice and Wait</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary may not enter into a contract under subsection (a), exercise an authorization to proceed with such a contract or extend any contract period for such a contract by more than one year until 30 days after the date on <page identifier="/us/stat/111/2035">111 STAT. 2035</page>which the Secretary submits to the congressional defense committees a report with respect to the contract.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>Except as provided in paragraph (3), a report under paragraph (1) with respect to a contract shall set forth—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>the anticipated costs and fees of the Department under the contract, including the anticipated maximum amount of such costs and fees;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>any performance specifications in the contract;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><content>the anticipated dates of commencement and completion of the provision of goods or services under the contract;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="D">(D) </num><content>the allocation between the Department and the contractor of any financial, regulatory, or environmental obligations under the contract;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="E">(E) </num><content>any activities planned or anticipated to be required with respect to the project after completion of the contract;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="F">(F) </num><content>the site services or other support to be provided the contractor by the Department under the contract;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="G">(G) </num><content>the goods or services to be provided by the Department or contractor under the contract, including any additional obligations to be borne by the Department or contractor with respect to such goods or services;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="H">(H) </num><content>if the contract provides for financing of the project by an entity or entities other than the United States, a detailed comparison of the costs of financing the project through such entity or entities with the costs of financing the project by the United States;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="I">(I) </num><content>the schedule for the contract;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="J">(J) </num><content>the costs the Department would otherwise have incurred in obtaining the goods or services covered by the contract if the Department had not proposed to obtain the goods or services under this section;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="K">(K) </num><content>an estimate and justification of the cost savings, if any, to be realized through the contract, including the assumptions underlying the estimate;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="L">(L) </num><content>the effect of the contract on any ancillary schedules applicable to the facility concerned, including milestones in site compliance agreements; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="M">(M) </num><content>the plans for maintaining financial and programmatic accountability for activities under the contract.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><chapeau>In the case of a contract under subsection (a) at the Hanford Reservation, the report under paragraph (1) shall set forth—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>the matters specified in paragraph (2); and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><chapeau>if the contract contemplates two pilot vitrification plants—</chapeau> <clause class="indent2 fontsize10"><num value="i">(i) </num><content>an analysis of the basis for the selection of each of the plants in lieu of a single pilot vitrification plant; and</content></clause> <clause class="indent2 fontsize10"><num value="ii">(ii) </num><content>a detailed comparison of the costs to the United States of two pilot plants with the costs to the United States of a single pilot plant.</content></clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Cost Variations</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><subparagraph class="inline"><num value="A">(A) </num><content>The Secretary may not enter into a contract for a project referred to in subparagraph (B), or obligate funds attributable to the capital portion of the cost of such a contract, whenever the current estimated cost of the project exceeds the amount of the estimated cost of the project as shown in the most recent budget justification data submitted to Congress.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">(B) </num><chapeau>Subparagraph (A) applies to the following:<page identifier="/us/stat/111/2036">111 STAT. 2036</page></chapeau> <clause class="indent1 fontsize10"><num value="i">(i) </num><content>A project authorized by section 3102(i).</content></clause> <clause class="indent1 fontsize10"><num value="ii">(ii) </num><content>A project authorized by section 3103 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2824) for which a contract has not been entered into as of the date of enactment of this Act.</content></clause> </subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The Secretary may not obligate funds attributable to the capital portion of the cost of a contract entered into before such date for a project authorized by such section 3103 whenever the current estimated cost of the project equals or exceeds 110 percent of the amount of the estimated cost of the project as shown in the most recent budget justification data submitted to Congress.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Use of Funds for Termination of Contract</inline>.—</heading><content>Not later than 15 days before the Secretary obligates funds available for a project authorized by section 3102(i) to terminate the contract for the project under subsection (a), the Secretary shall notify the congressional defense committees of the Secretary’s intent to obligate the funds for that purpose.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Annual Report on Contracts</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Not later than February 28 of each year, the Secretary shall submit to the congressional defense committees a report on the activities, if any, carried out under each contract referred to in paragraph (2) during the preceding year. The report shall include an update with respect to each such contract of the matters specified under subsection (b)(1) as of the date of the report.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>A contract referred to in paragraph (1) is the following:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>A contract under subsection (a) for a project referred to in that subsection.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>A contract under section 3103 of the National Defense Authorization Act for Fiscal Year 1997.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Assessment of Contracting Without Sufficient Appropriations</inline>.—</heading><content>Not later than 90 days after the date of enactment of this Act, the Secretary shall submit to the congressional defense committees a report assessing whether, and under what circumstances, the Secretary could enter into contracts for defense environmental management privatization projects in the absence of sufficient appropriations to meet obligations under such contracts without thereby violating the provisions of section 1341 of title 31, United States Code.</content> </subsection> </section> <section> <num value="3133">SEC. 3133. </num><heading>INTERNATIONAL COOPERATIVE STOCKPILE STEWARDSHIP.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Funding Prohibition</inline>.—</heading><content>No funds authorized to be appropriated or otherwise available to the Department of Energy for fiscal year 1998 may be obligated or expended to conduct any activities associated with international cooperative stockpile stewardship.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><chapeau>Exceptions.—Subsection (a) does not apply to the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Activities conducted between the United States and the United Kingdom.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Activities conducted between the United States and France.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Activities carried out under title III of this Act relating to cooperative threat reduction with states of the former Soviet Union.</content></paragraph> </subsection> </section> <section> <num value="3134">SEC. 3134. </num><heading>MODERNIZATION OF ENDURING NUCLEAR WEAPONS COMPLEX.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Funding</inline>.—</heading><content>Subject to subsection (b), of the funds authorized to be appropriated to the Department of Energy pursuant to section <page identifier="/us/stat/111/2037">111 STAT. 2037</page>3101, $85,000,000 shall be available for carrying out the program described in section 3137(a) of the National Defense Authorization Act for Fiscal Year 1996 (42 U.S.C. 2121 note).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Limitation on Availability</inline>.—</heading><content>None of the funds available under subsection (a) for carrying out the program referred to in that subsection may be obligated or expended until 30 days after the date of the receipt by Congress of the report required under subsection (c).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Report on Allocation of Funds</inline>.—</heading><content>Not later than 30 days after the date of enactment of this Act, the Secretary of Energy shall submit to the congressional defense committees a report setting forth the proposed allocation among specific Department of Energy sites of the funds available under subsection (a) for the program referred to in that subsection.</content> </subsection> </section> <section> <num value="3135">SEC. 3135. </num><heading>TRITIUM PRODUCTION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Tritium Production Decision</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Not later than December 31, 1998, the Secretary of Energy shall make a final decision on the technologies to be utilized, and the schedule to be adopted, for tritium production in order to meet the requirements in the Nuclear Weapons Stockpile Memorandum relating to tritium production, including the tritium production date of 2005 specified in the Nuclear Weapons Stockpile Memorandum.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>In making the final decision, the Secretary shall take into account the following:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>The requirements for tritium production specified in the Nuclear Weapons Stockpile Memorandum, including, in particular, the requirements for the so-called “upload hedge” component of the nuclear weapons stockpile.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>The activities of the Department of Energy relating to the evaluation and demonstration of technologies under the accelerator program and the commercial light water reactor program.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><chapeau>The potential liabilities and benefits of each potential technology for tritium production, including—</chapeau> <clause class="indent2 fontsize10"><num value="i">(i) </num><content>regulatory and other barriers that might prevent the production of tritium using the technology by the production date referred to in paragraph (1);</content></clause> <clause class="indent2 fontsize10"><num value="ii">(ii) </num><content>potential difficulties, if any, in licensing the technology;</content></clause> <clause class="indent2 fontsize10"><num value="iii">(iii) </num><content>the variability, if any, in tritium production rates using the technology; and</content></clause> <clause class="indent2 fontsize10"><num value="iv">(iv) </num><content>any other benefits (including scientific or research benefits or the generation of revenue) associated with the technology.</content></clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Reports on Decision</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Upon making a final decision under paragraph (1) of subsection (a), the Secretary shall submit to the congressional defense committees a report on the final decision. The report shall include an assessment of how the selected technology addresses the items taken into account under paragraph (2) of that subsection.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>If the Secretary determines that it is not possible to make the final decision by the date specified in paragraph (1) of subsection (a), the Secretary shall submit to the congressional defense committees on that date a report that explains in detail why the final decision cannot be made by that date.<page identifier="/us/stat/111/2038">111 STAT. 2038</page></content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Limitation on Availability of Funds</inline>.—</heading><chapeau>The Secretary may not obligate or expend any funds authorized to be appropriated or otherwise made available for the Department of Energy by this Act for the purpose of evaluating or utilizing any technology for the production of tritium other than a commercial light water reactor or an accelerator until the later of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>January 31, 1999; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the date that is 30 days after the date on which the Secretary makes a final decision under subsection (a).</content></paragraph> </subsection> </section> <section> <num value="3136">SEC. 3136. </num><heading>PROCESSING, TREATMENT, AND DISPOSITION OF SPENT NUCLEAR FUEL RODS AND OTHER LEGACY NUCLEAR MATERIALS AT THE SAVANNAH RIVER SITE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Funding</inline>.—</heading><content>Of the funds authorized to be appropriated pursuant to section 3102(e), not more than $47,000,000 shall be available for the implementation of a program to accelerate the receipt, processing (including the H-canyon restart operations), reprocessing, separation, reduction, deactivation, stabilization, isolation, and interim storage of high level nuclear waste associated with Department of Energy spent fuel rods, foreign spent fuel rods, and other nuclear materials that are located at the Savannah River Site.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Requirement for Continuing Operations at Savannah River Site</inline>.—</heading><content>The Secretary of Energy shall continue operations and maintain a high state of readiness at the F-canyon and H-canyon facilities at the Savannah River Site and shall provide technical staff necessary to operate and maintain such facilities at that state of readiness.</content> </subsection> </section> <section> <num value="3137">SEC. 3137. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s7257c">42 USC 7257c</ref>.</p></sidenote><heading>LIMITATIONS ON USE OF FUNDS FOR LABORATORY DIRECTED RESEARCH AND DEVELOPMENT PURPOSES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">General Limitations</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>No funds authorized to be appropriated or otherwise made available to the Department of Energy in any fiscal year after fiscal year 1997 for weapons activities may be obligated or expended for activities under the Department of Energy Laboratory Directed Research and Development Program, or under any Department of Energy technology transfer program or cooperative research and development agreement, unless such activities support the national security mission of the Department of Energy.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>No funds authorized to be appropriated or otherwise made available to the Department of Energy in any fiscal year after fiscal year 1997 for environmental restoration, waste management, or nuclear materials and facilities stabilization may be obligated or expended for activities under the Department of Energy Laboratory Directed Research and Development Program, or under any Department of Energy technology transfer program or cooperative research and development agreement, unless such activities support the environmental restoration mission, waste management mission, or materials stabilization mission, as the case may be, of the Department of Energy.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Limitation in Fiscal Year 1998 Pending Submittal of Annual Report</inline>.—</heading><content>Not more than 30 percent of the funds authorized to be appropriated or otherwise made available to the Department of Energy in fiscal year 1998 for laboratory directed research and development may be obligated or expended for such research and development until the Secretary of Energy submits to the congressional defense committees the report required by section 3136(b) <page identifier="/us/stat/111/2039">111 STAT. 2039</page>of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2831; 42 U.S.C. 7257b) in 1998.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Submittal Date for Annual Report on Laboratory Directed Research and Development Program</inline>.—</heading><content>Paragraph (1) of section 3136(b) of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2831; 42 U.S.C. 7257b) is amended by striking out “The Secretary of Energy shall annually submit” and inserting in lieu thereof “Not later than February 1 each year, the Secretary of Energy shall submit”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Assessment of Funding Level for Laboratory Directed Research and Development</inline>.—</heading><content>The Secretary shall include in the report submitted under such section 3136(b)(1) in 1998 an assessment of the funding required to carry out laboratory directed research and development, including a recommendation for the percentage of the funds provided to Government-owned, contractor-operated laboratories for national security activities that should be made available for such research and development under section 3132(c) of the National Defense Authorization Act for Fiscal Year 1991 (42 U.S.C. 7257a(c)).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Definition</inline>.—</heading><content>In this section, the term “laboratory directed research and development” has the meaning given that term in section 3132(d) of the National Defense Authorization Act for Fiscal Year 1991 (42 U.S.C. 7257a(d)).</content> </subsection> </section> <section> <num value="3138">SEC. 3138. </num><heading>PILOT PROGRAM RELATING TO USE OF PROCEEDS OF DISPOSAL OR UTILIZATION OF CERTAIN DEPARTMENT OF ENERGY ASSETS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s7256">42 USC 7256 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Purpose</inline>.—</heading><content>The purpose of this section is to encourage the Secretary of Energy to dispose of or otherwise utilize certain assets of the Department of Energy by making available to the Secretary the proceeds of such disposal or utilization for purposes of defraying the costs of such disposed or utilization.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Use of Proceeds To Defray Costs</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Notwithstanding section 3302 of title 31, United States Code, the Secretary may retain from the proceeds of the sale, lease, or disposal of an asset under subsection (c) an amount equal to the cost of the sale, lease, or disposal of the asset. The Secretary shall utilize amounts retained under this paragraph to defray the cost of the sale, lease, or disposal.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>For purposes of paragraph (1), the cost of a sale, lease, or disposal shall include—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>the cost of administering the sale, lease, or disposal;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>the cost of recovering or preparing the asset concerned for the sale, lease, or disposal; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><content>any other cost associated with the sale, lease, or disposal.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Covered Transactions</inline>.—</heading><chapeau>Subsection (b) applies to the following transactions:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The sale of heavy water at the Savannah River Site, South Carolina, that is under the jurisdiction of the Defense Environmental Management Program.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The sale of precious metals that are under the jurisdiction of the Defense Environmental Management Program.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The lease of buildings and other facilities located at the Hanford Reservation, Washington, that are under the jurisdiction of the Defense Environmental Management Program.<page identifier="/us/stat/111/2040">111 STAT. 2040</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The lease of buildings and other facilities located at the Savannah River Site that are under the jurisdiction of the Defense Environmental Management Program.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>The disposal of equipment and other personal property located at the Rocky Flats Defense Environmental Technology Site, Colorado, that is under the jurisdiction of the Defense Environmental Management Program.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>The disposal of materials at the National Electronics Recycling Center, Oak Ridge, Tennessee that are under the jurisdiction of the Defense Environmental Management Program.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Applicability of Disposal Authority</inline>.—</heading><content>Nothing in this section shall be construed to limit the application of sections 202 and 203(j) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 483 and 484(j)) to the disposal of equipment and other personal property covered by this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than January 31, 1999, the Secretary shall submit to the congressional defense committees a report on amounts retained by the Secretary under subsection (b) during fiscal year 1998.</content> </subsection> </section> <section> <num value="3139">SEC. 3139. </num><heading>MODIFICATION AND EXTENSION OF AUTHORITY RELATING TO APPOINTMENT OF CERTAIN SCIENTIFIC, ENGINEERING, AND TECHNICAL PERSONNEL.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Repeal of Requirement for EPA Study</inline>.—</heading><chapeau>Section 3161 of the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103–337; 108 Stat. 3095; 42 U.S.C. 7231 note) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out subsection (c); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by redesignating subsection (d) as subsection (c).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><content>Extension of Authority.—Paragraph (1) of subsection (c) of such section, as so redesignated, is amended by striking out “September 30, 1997” and inserting in lieu thereof “September 30, 1999”.</content> </subsection> </section> <section> <num value="3140">SEC. 3140. </num><heading>LIMITATION ON USE OF FUNDS FOR SUBCRITICAL NUCLEAR WEAPONS TESTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Limitation</inline>.—</heading><content>The Secretary of Energy may not conduct any subcritical nuclear weapons tests using funds appropriated or otherwise available to the Secretary for fiscal year 1998 until the Secretary submits to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a detailed report on the use of the funds available to the Secretary for fiscal years 1996 and 1997 to conduct such tests.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Exception</inline>.—</heading><chapeau>Subsection (a) shall not apply to the use of funds covered by that subsection for subcritical nuclear weapons tests if the Secretary—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>determines that the use of such funds for such tests is urgently required to meet national security interests; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>notifies Congress of that determination before using such funds for such tests.</content></paragraph> </subsection> </section> <section> <num value="3141">SEC. 3141. </num><heading>LIMITATION ON USE OF CERTAIN FUNDS UNTIL FUTURE USE PLANS ARE SUBMITTED.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Limitation</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Subject to paragraph (2), the Secretary of Energy may not use more than 80 percent of the funds available to the Secretary pursuant to the authorization of appropriations <page identifier="/us/stat/111/2041">111 STAT. 2041</page>in section 3102(g) until the Secretary submits the plans described in subsection (b).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The limitation in paragraph (1) shall cease to be in effect if the Secretary submits, by March 15, 1998, the report described in subsection (c).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Plans</inline>.—</heading><content>The plans referred to in subsection (a)(1) are the draft future use plan and the final future use plan required under section 3153(f) of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2840; 42 U.S.C. 7274k note).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Report</inline>.—</heading><chapeau>If the Secretary is unable to submit all of the plans described in subsection (b) by the deadlines set forth in such section 3153(f), the Secretary shall submit to Congress a report containing, for each plan that will not be submitted by the applicable deadline—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the status of the plan;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the reasons why the plan cannot be submitted by the applicable deadline; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>the date by which the plan will be submitted.</content></paragraph> </subsection> </section> </subtitle> <subtitle> <num value="D">Subtitle D—</num><heading>Other Matters</heading> <section> <num value="3151">SEC. 3151. </num><heading>PLAN FOR STEWARDSHIP, MANAGEMENT, AND CERTIFICATION OF WARHEADS IN THE NUCLEAR WEAPONS STOCKPILE.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2121">42 USC 2121 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Plan Requirement</inline>.—</heading><content>The Secretary of Energy shall develop and annually update a plan for maintaining the nuclear weapons stockpile. The plan shall cover, at a minimum, stockpile stewardship, stockpile management, and program direction and shall be consistent with the programmatic and technical requirements of the most recent annual Nuclear Weapons Stockpile Memorandum.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Plan Elements</inline>.—</heading><chapeau>The plan and each update of the plan shall set forth the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The number of warheads (including active and inactive warheads) for each warhead type in the nuclear weapons stockpile.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The current age of each warhead type, and any plans for stockpile lifetime extensions and modifications or replacement of each warhead type.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The process by which the Secretary of Energy is assessing the lifetime, and requirements for lifetime extension or replacement, of the nuclear and nonnuclear components of the warheads (including active and inactive warheads) in the nuclear weapons stockpile.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The process used in recertifying the safety, security, and reliability of each warhead type in the nuclear weapons stockpile.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Any concerns which would affect the ability of the Secretary of Energy to recertify the safety, security, or reliability of warheads in the nuclear weapons stockpile (including active and inactive warheads).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Annual Submission of Plan to Congress</inline>.—</heading><content>The Secretary of Energy shall submit to Congress the plan developed under subsection (a) not later than March 15, 1998, and shall submit an updated version of the plan not later than March 15 of each year <page identifier="/us/stat/111/2042">111 STAT. 2042</page>thereafter. The plan shall be submitted in both classified and unclassified form.</content> </subsection> </section> <section> <num value="3152">SEC. 3152. </num><heading>REPEAL OF OBSOLETE REPORTING REQUIREMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Annual Report on Activities of the Atomic Energy Commission</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Section 251 of the Atomic Energy Act of 1954 (42 U.S.C. 2016) is repealed.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of that Act is amended by striking out the item relating to section 251.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Annual Report on Weapons Activities Budgets</inline>.—</heading><content>Section 3156 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2841; 42 U.S.C. 7271c) is repealed.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Annual Update of Master Plan for Nuclear Weapons Stockpile</inline>.—</heading><content>Section 3153 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104–106; 110 Stat. 624; 42 U.S.C. 2121 note) is repealed.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Annual Report on Weapons Activities Budgets</inline>.—</heading><content>Section 3159 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104–106; 110 Stat. 626; 42 U.S.C. 7271b note) is repealed.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Annual Report on Stockpile Stewardship Program</inline>.—</heading><chapeau>Section 3138 of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103–160; 107 Stat. 1946; 42 U.S.C. 2121 note) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out subsections (d) and (e);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by redesignating subsections (f), (g), and (h) as subsections (d), (e), and (f), respectively; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>in subsection (e), as so redesignated, by striking out “and the 60-day period referred to in subsection (e)(2)(A)(ii)”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Annual Report on Development of Tritium Production Capacity</inline>.—</heading><content>Section 3134 of the National Defense Authorization Act for Fiscal Year 1993 (Public Law 102–484; 106 Stat. 2639) is repealed.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num><heading><inline class="smallCaps">Annual Report on Research Relating to Defense Waste Cleanup Technology Program</inline>.—</heading><chapeau>Section 3141 of the National Defense Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101–189; 103 Stat. 1679; 42 U.S.C. 7274a) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out subsection (c); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by redesignating subsection (d) as subsection (c).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h) </num><heading><inline class="smallCaps">Quarterly Report on Major DoE National Security Programs</inline>.—</heading><content>Section 3143 of the National Defense Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101–189; 103 Stat. 1681; 42 U.S.C. 7271a) is repealed.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="i">(i) </num><heading><inline class="smallCaps">Annual Report on Nuclear Test Ban Readiness Program</inline>.—</heading><content>Section 1436 of the National Defense Authorization Act, Fiscal Year 1989 (Public Law 100–456; 102 Stat. 2075; 42 U.S.C. 2121 note) is amended by striking out subsection (e).</content> </subsection> </section> <section> <num value="3153">SEC. 3153. </num><heading>STUDY AND FUNDING RELATING TO IMPLEMENTATION OF WORKFORCE RESTRUCTURING PLANS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Study Requirement</inline>.—</heading><content>The Secretary of Energy shall conduct a study on the effects of workforce restructuring plans for defense nuclear facilities developed pursuant to section 3161 of the National Defense Authorization Act for Fiscal Year 1993 (42 U.S.C. 7274h).<page identifier="/us/stat/111/2043">111 STAT. 2043</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Matters Covered by Study</inline>.—</heading><chapeau>The study shall cover the four-year period preceding the date of the enactment of this Act and shall include the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>An analysis of the number of jobs created by any employee retraining, education, and reemployment assistance and any community impact assistance provided in each workforce restructuring plan developed pursuant to section 3161 of the National Defense Authorization Act for Fiscal Year 1993.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>An analysis of other benefits provided pursuant to such plans, including any assistance provided to community reuse organizations.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>A description of the funds expended, and the funds obligated but not expended, pursuant to such plans as of the date of the report.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>A description of the criteria used since October 23, 1992, in providing assistance pursuant to such plans.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><chapeau>A comparison of any similar benefits provided—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>pursuant to such a plan to employees whose employment at the defense nuclear facility covered by the plan is terminated; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>to employees whose employment at a facility where more than 50 percent of the revenues are derived from contracts with the Department of Defense has been terminated as a result of cancellation, termination, or completion of contracts with the Department of Defense and the employees whose employment is terminated constitute more than 15 percent of the employees at that facility.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Conduct of Study</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The study shall be conducted through a contract with an independent private auditing firm.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The Secretary of Energy may not enter into any contract for the conduct of the study until the Secretary submits a notification of the proposed contract award to the congressional defense committees.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><content>The Secretary of Energy and the Secretary of Defense shall each ensure that any firm conducting the study is provided access to all documents in the possession of the Department of Energy or the Department of Defense, as the case may be, that are relevant to the study, including documents in the possession of the Inspector General of the Department of Energy or the Inspector General of the Department of Defense.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Report on Study</inline>.—</heading><content>The Secretary of Energy shall submit a report to Congress on the results of the study not later than March 31, 1998.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Limitation on Use of Funds for Local Impact Assistance</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>None of the funds authorized to be appropriated to the Department of Energy pursuant to section 3103(6) may be used for local impact assistance pursuant to a plan under section 3161(c)(6) of the National Defense Authorization Act for Fiscal Year 1993 (42 U.S.C. 7274h(c)(6)) until—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>with respect to assistance referred to in section 3161(c)(6)(A) of such Act, the Secretary of Energy coordinates with, provides a copy of the plan to, and obtains the approval of the Secretary of Labor; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>with respect to assistance referred to in section 3161(c)(6)(C) of such Act, the Secretary of Energy coordinates <page identifier="/us/stat/111/2044">111 STAT. 2044</page>with, provides a copy of the plan to, and obtains the approval of the Secretary of Commerce.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>For purposes of paragraph (1), if the Secretary of Labor or the Secretary of Commerce does not disapprove a plan within 60 days after receiving a copy of the plan, the plan is deemed to be approved.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s7274h">42 USC 7274h note</ref>.</p></sidenote><heading><inline class="smallCaps">Semiannual Report to Congress of Local Impact Assistance</inline>.—</heading><content>The Secretary of Energy shall submit to Congress every six months a report setting forth a description of, and the amount or value of, all local impact assistance provided during the preceding six months under section 3161(c)(6) of the National Defense Authorization Act of 1993 (42 U.S.C. 7274h(c)(6)).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num><heading><inline class="smallCaps">Effect on USEC Privatization Act</inline>.—</heading><content>Nothing in this section shall be construed as diminishing or affecting the obligations of the Secretary of Energy under section 3110(a)(5) of the USEC Privatization Act (Public Law 104–134; 110 Stat. 1321–341; 42 U.S.C. 2297h–8(a)(5)).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h) </num><heading><inline class="smallCaps">Definition</inline>.—</heading><content>In this section, the term “defense nuclear facility” has the meaning provided the term “Department of Energy defense nuclear facility” in section 3163 of the National Defense Authorization Act for Fiscal Year 1993 (Public Law 102–484; 42 U.S.C. 7274j).</content> </subsection> </section> <section> <num value="3154">SEC. 3154. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s7274m">42 USC 7274m note</ref>.</p></sidenote><heading>REPORT AND PLAN FOR EXTERNAL OVERSIGHT OF NATIONAL LABORATORIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than July 1, 1999, the Secretary of Energy shall submit to Congress a report on the external oversight of the national laboratories.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Matters Covered</inline>.—</heading><chapeau>The report shall contain the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>A description of the external oversight practices at the national laboratories and an analysis of the effectiveness of such practices, including the effect of such practices on the productivity of the laboratories and the research conducted by the laboratories.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Recommendations regarding the continuation, consolidation, or discontinuation of the external oversight practices described in paragraph (1), and the rationale for the recommendations.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Recommendations for any new external oversight practices that should be implemented, and the rationale for the recommendations.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>A plan for carrying out the recommendations.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">National Laboratories Covered</inline>.—</heading><chapeau>For purposes of this section, the national laboratories are—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the Lawrence Livermore National Laboratory, Livermore, California;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the Los Alamos National Laboratory, Los Alamos, New Mexico; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>the Sandia National Laboratories, Albuquerque, New Mexico.</content> </paragraph> </subsection> </section> <section> <num value="3155">SEC. 3155. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s7381">42 USC 7381 note</ref>.</p></sidenote><heading>UNIVERSITY-BASED RESEARCH COLLABORATION PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>Congress makes the following findings:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The maintenance of scientific and engineering competence in the United States is vital to long-term national security and the defense and national security missions of the Department of Energy.<page identifier="/us/stat/111/2045">111 STAT. 2045</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Engaging the universities and colleges of the Nation in research on long-range problems of vital national security interest will be critical to solving the technology challenges faced within the defense and national security programs of the Department of Energy in the next century.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Enhancing collaboration among the national laboratories, universities and colleges, and industry will contribute significantly to the performance of these Department of Energy missions.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Program</inline>.—</heading><content>The Secretary of Energy shall establish a university program at a location that can develop the most effective collaboration among national laboratories, universities and colleges, and industry in support of scientific and engineering advancement in key Department of Energy defense and national security program areas.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Funding</inline>.—</heading><content>Of the funds authorized to be appropriated in this title to the Department of Energy for fiscal year 1998, the Secretary shall make $5,000,000 available for the establishment and operation of the program under subsection (b).</content> </subsection> </section> <section> <num value="3156">SEC. 3156. </num><heading>STOCKPILE STEWARDSHIP PROGRAM.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2121">42 USC 2121 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>Congress makes the following findings:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Eliminating the threat posed by nuclear weapons to the United States is an important national security goal.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>As long as nuclear threats remain, the nuclear deterrent of the United States must be effective and reliable.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>A safe, secure, effective, and reliable United States nuclear stockpile is central to the current nuclear deterrence strategy of the United States.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The Secretary of Energy has undertaken a stockpile stewardship and management program to ensure the safety, security, effectiveness, and reliability of the nuclear weapons stockpile of the United States, consistent with all United States treaty requirements and the requirements of the nuclear deterrence strategy of the United States.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>It is the policy of the current administration that new nuclear warhead designs are not required to effectively implement the nuclear deterrence strategy of the United States.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Policy</inline>.—</heading><chapeau>It is the policy of the United States that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>activities of the stockpile stewardship program shall be directed toward ensuring that the United States possesses a safe, secure, effective, and reliable nuclear stockpile, consistent with the national security requirements of the United States; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>stockpile stewardship activities of the United States shall be conducted in conformity with the terms of the Treaty on the Non-Proliferation of Nuclear Weapons and the Comprehensive Test Ban Treaty signed by the President on September 24, 1996, when and if that treaty enters into force.</content></paragraph> </subsection> </section> <section> <num value="3157">SEC. 3157. </num><heading>REPORTS ON ADVANCED SUPERCOMPUTER SALES TO CERTAIN FOREIGN NATIONS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8">50 USC app. 2404 note.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Reports</inline>.—</heading><chapeau>The Secretary of Energy shall require that any company that is a participant in the Accelerated Strategic Computing Initiative (ASCI) program of the Department of Energy report to the Secretary and to the Secretary of Defense each sale by that company to a country designated as a Tier III country of a computer capable of operating at a speed in excess of 2,000 <page identifier="/us/stat/111/2046">111 STAT. 2046</page>millions theoretical operations per second (MTOPS). The report shall include a description of the following with respect to each such sale:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The anticipated end-use of the computer sold.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The software included with the computer.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><chapeau>Any arrangement under the terms of the sale regarding—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>upgrading the computer;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>servicing the computer; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>furnishing spare parts for the computer.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Covered Countries</inline>.—</heading><content>For purposes of this section, the countries designated as Tier III countries are the countries listed as “computer tier 3” eligible countries in part 740.7 of title 15 of the Code of Federal Regulations, as in effect on June 10, 1997 (or any successor list).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Quarterly Submission of Reports</inline>.—</heading><content>The Secretary of Energy shall require that reports under subsection (a) be submitted quarterly.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Annual Report</inline>.—</heading><content>The Secretary of Energy shall submit to Congress an annual report containing all information received under subsection (a) during the preceding year. The first annual report shall be submitted not later than July 1, 1998.</content> </subsection> </section> <section> <num value="3158">SEC. 3158. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s7274g">42 USC 7274g</ref>.</p></sidenote><heading>TRANSFERS OF REAL PROPERTY AT CERTAIN DEPARTMENT OF ENERGY FACILITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Transfer Regulations</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of Energy shall prescribe regulations for the transfer by sale or lease of real property at Department of Energy defense nuclear facilities for the purpose of permitting the economic development of the property.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>The Secretary of Energy may not transfer real property under the regulations prescribed under paragraph (1) until—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>the Secretary submits a notification of the proposed transfer to the congressional defense committees; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>a period of 30 days has elapsed following the date on which the notification is submitted.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Indemnification</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Except as provided in paragraph (3) and subject to subsection (c), in the sale or lease of real property pursuant to the regulations prescribed under subsection (a), the Secretary of Energy may hold harmless and indemnify a person or entity described in paragraph (2) against any claim for injury to person or property that results from the release or threatened release of a hazardous substance or pollutant or contaminant as a result of Department of Energy activities at the defense nuclear facility on which the real property is located. Before entering into any agreement for such a sale or lease, the Secretary shall notify the person or entity that the Secretary has authority to provide indemnification to the person or entity under this subsection. The Secretary shall include in any agreement for such a sale or lease a provision stating whether indemnification is or is not provided.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>Paragraph (1) applies to the following persons and entities:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>Any State that acquires ownership or control of real property of a defense nuclear facility.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>Any political subdivision of a State that acquires such ownership or control.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><content>Any other person or entity that acquires such ownership or control.<page identifier="/us/stat/111/2047">111 STAT. 2047</page></content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><content>To the extent the persons and entities described in paragraph (2) contributed to any such release or threatened release, paragraph (1) shall not apply.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Conditions</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>No indemnification on a claim for injury may be provided under this section unless the person or entity making a request for the indemnification—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>notifies the Secretary of Energy in writing within two years after such claim accrues;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>furnishes to the Secretary copies of pertinent papers received by the person or entity;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><content>furnishes evidence or proof of the claim;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="D">(D) </num><content>provides, upon request by the Secretary, access to the records and personnel of the person or entity for purposes of defending or settling the claim; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="E">(E) </num><content>begins action within six months after the date of mailing, by certified or registered mail, of notice of final denial of the claim by the Secretary.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>For purposes of paragraph (1)(A), the date on which a claim accrues is the date on which the person asserting the claim knew (or reasonably should have known) that the injury to person or property referred to in subsection (b)(1) was caused or contributed to by the release or threatened release of a hazardous substance, pollutant, or contaminant as a result of Department of Energy activities at the defense nuclear facility on which the real property is located.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Authority of Secretary of Energy</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>In any case in which the Secretary of Energy determines that the Secretary may be required to indemnify a person or entity under this section for any claim for injury to person or property referred to in subsection (b)(1), the Secretary may settle or defend the claim on behalf of that person or entity.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>In any case described in paragraph (1), if the person or entity that the Secretary may be required to indemnify does not allow the Secretary to settle or defend the claim, the person or entity may not be indemnified with respect to that claim under this section.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Relationship to Other Law</inline>.—</heading><content>Nothing in this section shall be construed as affecting or modifying in any way section 120(h) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9620(h)).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>In this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The term “defense nuclear facility” has the meaning provided by the term “Department of Energy defense nuclear facility” in section 318 of the Atomic Energy Act of 1954 (42 U.S.C. 2286g).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The terms “hazardous substance”, “release”, and “pollutant or contaminant” have the meanings provided by section 101 of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601).</content></paragraph> </subsection> </section> <section> <num value="3159">SEC. 3159. </num><heading>REQUIREMENT TO DELEGATE CERTAIN AUTHORITIES TO SITE MANAGER OF HANFORD RESERVATION.</heading> <chapeau>Section 3173(b) of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2848; 42 U.S.C. 7274k) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>in paragraph (1)—<page identifier="/us/stat/111/2048">111 STAT. 2048</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking out “In addition” and inserting in lieu thereof “Except as provided in paragraph (5), in addition”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking out “Act,” and inserting in lieu thereof “subtitle,”; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><chapeau>In the case of the Hanford Reservation, Richland, Washington, the Secretary shall delegate to the Site Manager the authority described in paragraph (1) for fiscal year 1998. The Secretary may withdraw the delegated authority if the Secretary—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>determines that the Site Manager of the Hanford Reservation has misused or misapplied that authority; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>the Secretary submits to Congress a notification of the Secretary’s intent to withdraw the authority.”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> </section> <section> <num value="3160">SEC. 3160. </num><heading>SUBMITTAL OF BIENNIAL WASTE MANAGEMENT REPORTS.</heading> <content>Section 3153(b)(2)(B) of the National Defense Authorization Act for Fiscal Year 1994 (42 U.S.C. 7274k(b)(2)(B)) is amended by striking out “odd-numbered year after 1995” and inserting in lieu thereof “odd-numbered year after 1997”.</content> </section> <section> <num value="3161">SEC. 3161. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s7251">42 USC 7251 note</ref>.</p></sidenote><heading>DEPARTMENT OF ENERGY SECURITY MANAGEMENT BOARD.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Establishment</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of Energy shall establish a board to be known as the “Department of Energy Security Management Board” (in this section referred to as the “Board”).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The Board shall advise the Secretary on policy matters, operational concerns, strategic planning, personnel, budget, procurement, and development of priorities relating to the security functions of the Department of Energy.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Members</inline>.—</heading><chapeau>The Board shall be comprised of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the Secretary of Energy, who shall serve as chairman;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the Director of the Office of Nonproliferation and National Security of the Department of Energy;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>the Assistant Secretary of Energy for Environmental Management;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>the Assistant Secretary of Energy for Defense Programs;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>the Assistant Secretary of Energy for Environment, Safety, and Health;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>the Associate Deputy Secretary of Energy for Field Management;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>three individuals selected by the Secretary of Defense and appointed by the Secretary of Energy;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>an individual selected by the Director of the Federal Bureau of Investigation and appointed by the Secretary of Energy; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><content>an individual selected by the Director of Central Intelligence and appointed by the Secretary of Energy.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Appointments</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of Defense, the Director of the Federal Bureau of Investigation, and the Director of Central Intelligence shall consult with the Secretary of Energy in selecting individuals for appointment under paragraphs (7), (8), and (9), respectively, of subsection (b).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The Secretary of Energy may not appoint as a member of the Board under paragraph (7), (8), or (9) of subsection (b) an officer or employee of the Department of Energy, an employee of a contractor or subcontractor of the Department, or an individual under contract with the Department.<page identifier="/us/stat/111/2049">111 STAT. 2049</page></content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><content>The Secretary of Energy shall appoint members of the Board under paragraphs (7), (8), and (9) of subsection (b) not later than January 15, 1998.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Vacancies</inline>.—</heading><content>Any vacancy in the Board shall be filled in the same manner as the original appointment.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Personnel Matters</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><subparagraph class="inline"><num value="A">(A) </num><content>Each member of the Board who is not an officer or employee of the Federal Government shall be compensated at a rate equal to the daily equivalent of the annual rate of basic pay prescribed for level V of the Executive Schedule under section 5316 of title 5, United States Code, for each day (including travel time) during which such member is engaged in the performance of the duties of the Board.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">(B) </num><content>All members of the Board who are officers or employees of the United States shall serve without compensation in addition to that received for their services as officers or employees of the United States.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The members of the Board shall be allowed travel expenses, including per diem in lieu of subsistence, at rates authorized for employees of agencies under subchapter I of chapter 57 of title 5, United States Code, while away from their homes or regular places of business in the performance of services for the Board.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Applicability of FACA</inline>.—</heading><content>The provisions of the Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the activities of the Board under this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num><heading><inline class="smallCaps">Termination</inline>.—</heading><content>The Board shall terminate on October 31, 2000.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h) </num><heading><inline class="smallCaps">Security Functions Defined</inline>.—</heading><content>In this section, the term “security functions” means all Department of Energy activities related to the safeguarding and security of nuclear weapons and materials, protection of classified and unclassified controlled nuclear information, and physical and personnel security.</content> </subsection> </section> <section> <num value="3162">SEC. 3162. </num><heading>SUBMITTAL OF ANNUAL REPORT ON STATUS OF SECURITY FUNCTIONS AT NUCLEAR WEAPONS FACILITIES.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s7274">42 USC 7274 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>Not later than September 1 each year, the Secretary of Energy shall submit to the congressional defense committees the report entitled “Annual Report to the President on the Status of Safeguards and Security of Domestic Nuclear Weapons Facilities”, or any successor report to such report.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Requirement Relating to Reports Through Fiscal Year 2000</inline>.—</heading><content>The Secretary shall include with each report submitted under subsection (a) in fiscal years 1998 through 2000 any comments on such report by the members of the Department of Energy Security Management Board established under section 3161 that such members consider appropriate.</content> </subsection> </section> <section> <num value="3163">SEC. 3163. </num><heading>MODIFICATION OF AUTHORITY ON COMMISSION ON MAINTAINING UNITED STATES NUCLEAR WEAPONS EXPERTISE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Commencement of Activities</inline>.—</heading><chapeau>Subsection (b)(1) of section 3162 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2844; 42 U.S.C. 2121 note) is amended, effective January 1, 1998—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subparagraph (C), by adding at the end the following new sentence: “The chairman may be designated once five members of the Commission have been appointed under subparagraph (A).”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following: <page identifier="/us/stat/111/2050">111 STAT. 2050</page> <quotedContent> <subparagraph class="indent2 fontsize10"><num value="E">“(E) </num><content>The Commission may commence its activities under this section upon the designation of the chairman of the Commission under subparagraph (C).”.</content></subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Deadline for Report</inline>.—</heading><content>Subsection (d) of that section is amended by striking out “March 15, 1998,” and inserting in lieu thereof “March 15, 1999,”.</content> </subsection> </section> <section> <num value="3164">SEC. 3164. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s431">16 USC 431 note</ref>.</p></sidenote><heading>LAND TRANSFER, BANDELIER NATIONAL MONUMENT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Transfer of Administrative Jurisdiction</inline>.—</heading><content>The Secretary of Energy shall transfer to the Secretary of the Interior administrative jurisdiction over a parcel of real property consisting of approximately 4.47 acres as depicted on the map entitled “Boundary Map, Bandelier National Monument”, No. 315/80,051, dated March 1995.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Boundary Modification</inline>.—</heading><content>The boundary of the Bandelier National Monument established by Proclamation No. 1322 (16 U.S.C. 431 note) is modified to include the real property transferred under subsection (a).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Public Availability of Map</inline>.—</heading><content>The map described in subsection (a) shall be on file and available for public inspection in the Lands Office at the Southwest System Support Office of the National Park Service, Santa Fe, New Mexico, and in the office of the Superintendent of Bandelier National Monument.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Administration</inline>.—</heading><chapeau>The real property and interests in real property transferred under subsection (a) shall be—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>administered as part of Bandelier National Monument; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>subject to all laws applicable to the Bandelier National Monument and all laws generally applicable to units of the National Park System.</content></paragraph> </subsection> </section> <section> <num value="3165">SEC. 3165. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2391">42 USC 2391 note</ref>.</p></sidenote><heading>FINAL SETTLEMENT OF DEPARTMENT OF ENERGY COMMUNITY ASSISTANCE OBLIGATIONS WITH RESPECT TO LOS ALAMOS NATIONAL LABORATORY, NEW MEXICO.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>The Secretary of Energy shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>convey, without consideration, to the Incorporated County of Los Alamos, New Mexico (in this section referred to as the “County”), or to the designee of the County, fee title to the parcels of land that are allocated for conveyance to the County in the agreement under subsection (e); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>transfer to the Secretary of the Interior, in trust for the Pueblo of San Ildefonso (in this section referred to as the “Pueblo”), administrative jurisdiction over the parcels that are allocated for transfer to the Secretary of the Interior in such agreement.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Preliminary Identification of Parcels of Land for Conveyance or Transfer</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Not later than 90 days after the date of enactment of this Act, the Secretary of Energy shall submit to the congressional defense committees a report identifying the parcels of land under the jurisdiction of the Secretary at the Los Alamos National Laboratory that are suitable for conveyance or transfer under this section.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>A parcel is suitable for conveyance or transfer for purposes of paragraph (1) if the parcel—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>is not required to meet the national security mission of the Department of Energy or will not be required for that purpose before the end of the 10-year period beginning on the date of enactment of this Act;<page identifier="/us/stat/111/2051">111 STAT. 2051</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>is likely to be conveyable or transferable, as the case may be, under this section not later than the end of such period; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>is suitable for use for a purpose specified in subsection (h).</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Review of Title</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Not later than one year after the date of enactment of this Act, the Secretary shall submit to the congressional defense committees a report setting forth the results of a title search on each parcel of land identified as suitable for conveyance or transfer under subsection (b), including an analysis of any claims against or other impairments to the fee title to each such parcel.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>In the period beginning on the date of the completion of the title search with respect to a parcel under paragraph (1) and ending on the date of the submittal of the report under that paragraph, the Secretary shall take appropriate actions to resolve the claims against or other impairments, if any, to fee title that are identified with respect to the parcel in the title search.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Environmental Restoration</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>Not later than 21 months after the date of enactment of this Act, the Secretary shall—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>identify the environmental restoration or remediation, if any, that is required with respect to each parcel of land identified under subsection (b) to which the United States has fee title;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>carry out any review of the environmental impact of the conveyance or transfer of each such parcel that is required under the provisions of the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><content>submit to Congress a report setting forth the results of the activities under subparagraphs (A) and (B).</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>If the Secretary determines under paragraph (1) that a parcel described in paragraph (1)(A) requires environmental restoration or remediation, the Secretary shall, to the maximum extent practicable, complete the environmental restoration or remediation of the parcel not later than 10 years after the date of enactment of this Act.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Agreement for Allocation of Parcels</inline>.—</heading><content>As soon as practicable after completing the review of titles to parcels of land under subsection (c), the Secretary of the Interior, on behalf of the Pueblo and for the County, shall submit to the Secretary of Energy an agreement between the Secretary of the Interior and the County that allocates between the Secretary of the Interior and the County the parcels to which the United States has fee title.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Plan for Conveyance and Transfer</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Not later than 90 days after the date of the submittal to the Secretary of Energy of the agreement under subsection (e), the Secretary shall submit to the congressional defense committees a plan for conveying or transferring parcels of land under this section in accordance with the allocation specified in the agreement.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The plan under paragraph (1) shall provide for the completion of the conveyance or transfer of parcels under this section not later than 9 months after the date of the submittal of the plan under that paragraph.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num><heading><inline class="smallCaps">Conveyance or Transfer</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Subject to paragraphs (2) and (3), the Secretary shall convey or transfer parcels of land <page identifier="/us/stat/111/2052">111 STAT. 2052</page>in accordance with the allocation specified in the agreement submitted to the Secretary under subsection (e).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>In the case of a parcel allocated under the agreement that is not available for conveyance or transfer in accordance with the requirement in subsection (f)(2) by reason of its requirement to meet the national security mission of the Department, the Secretary shall convey or transfer the parcel, as the case may be, when the parcel is no longer required for that purpose.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><subparagraph class="inline"><num value="A">(A) </num><content>In the case of a parcel allocated under the agreement that is not available for conveyance or transfer in accordance with such requirement by reason of requirements for environmental restoration or remediation, the Secretary shall convey or transfer the parcel, as the case may be, upon the completion of the environmental restoration or remediation that is required with respect to the parcel.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">(B) </num><content>If the Secretary determines that environmental restoration or remediation cannot reasonably be expected to be completed with respect to a parcel by the end of the 10-year period beginning on the date of enactment of this Act, the Secretary shall not convey or transfer the parcel under this section.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h) </num><heading><inline class="smallCaps">Use of Conveyed or Transferred Land</inline>.—</heading><content>The parcels of land conveyed or transferred under this section shall be used for historic, cultural, or environmental preservation purposes, economic diversification purposes, or community self-sufficiency purposes.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="i">(i) </num><heading><inline class="smallCaps">Treatment of Conveyances and Transfers</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The purpose of the conveyances and transfers under this section is to fulfill the obligations of the United States with respect to Los Alamos National Laboratory, New Mexico, under sections 91 and 94 of the Atomic Energy Community Act of 1955 (42 U.S.C. 2391, 2394).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Upon the completion of the conveyance or transfer of the parcels of land available for conveyance or transfer under this section, the Secretary shall make no further payments with respect to Los Alamos National Laboratory under section 91 or section 94 of the Atomic Energy Community Act of 1955.</content></paragraph> </subsection> </section> <section> <num value="3166">SEC. 3166. </num><heading>SENSE OF CONGRESS REGARDING THE Y–12 PLANT IN OAK RIDGE, TENNESSEE. </heading> <content>It is the sense of Congress that the Y–12 Plant in Oak Ridge, Tennessee, should be used as a national prototype center and that other executive agencies should utilize this center, where appropriate, to maximize their efficiency and cost effectiveness.</content> </section> <section> <num value="3167">SEC. 3167. </num><heading>SUPPORT FOR PUBLIC EDUCATION IN THE VICINITY OF LOS ALAMOS NATIONAL LABORATORY, NEW MEXICO.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Availability of Funds</inline>.—</heading><content>Of the funds authorized to be appropriated or otherwise made available to the Department of Energy by this title, $5,000,000 shall be available for payment by the Secretary of Energy to a nonprofit or not-for-profit educational foundation chartered to enhance educational activities in the public schools in the vicinity of Los Alamos National Laboratory, New Mexico (in this section referred to as the “Foundation”).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Use of Funds</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Foundation shall utilize funds provided under subsection (a) as the basis of, or as a contribution to, an endowment fund for the Foundation.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The Foundation shall use the income generated from investments in the endowment fund that are attributable to the payment <page identifier="/us/stat/111/2053">111 STAT. 2053</page>made under subsection (a) to fund programs to support the educational needs of children in public schools in the vicinity of Los Alamos National Laboratory.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Report</inline>.—</heading><chapeau>Not later than March 1, 1998, the Secretary shall submit to the congressional defense committees a report setting forth the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The amount of, and a schedule for, payments to the Foundation by the Secretary that are in addition to the payment provided under subsection (a).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>A plan to ensure that the Secretary makes no other payments to support the educational activities referred to in subsection (b)(2) after September 30, 2002.</content></paragraph> </subsection> </section> <section> <num value="3168">SEC. 3168. </num><heading>IMPROVEMENTS TO GREENVILLE ROAD, LIVERMORE, CALIFORNIA.</heading> <chapeau>From amounts authorized to be appropriated or otherwise made available to the Department of Energy by this title, funds shall be available for improvements to Greenville Road, Livermore, California, as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>$3,500,000 in fiscal year 1998.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>$3,300,000 in fiscal year 1999.</content></paragraph> </section> <section> <num value="3169">SEC. 3169. </num><heading>REPORT ON ALTERNATIVE SYSTEM FOR AVAILABILITY OF FUNDS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than October 1, 1998, the Secretary of Energy shall submit to Congress a report assessing how the Department of Energy could carry out a transition from a no-year funding system to a limited-period funding system.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Matters Covered</inline>.—</heading><chapeau>The report shall cover the following matters:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>A conceptual proposal on how the no-year funding system could be phased out.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>An estimate of the cost of making the transition to a limited-period funding system.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>A description of the programmatic effects that could occur if the no-year funding system is eliminated.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>A delineation of activities for which the no-year funding system should be retained.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>In this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The term “no-year funding system” means a funding system in which funds are available to the Department of Energy until expended.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The term “limited-period funding system” means a funding system in which funds are available to the Department of Energy for a limited period of time.</content></paragraph> </subsection> </section> <section> <num value="3170">SEC. 3170. </num><heading>REPORT ON REMEDIATION UNDER THE FORMERLY UTILIZED SITES REMEDIAL ACTION PROGRAM.</heading> <chapeau>Not later than March 1, 1998, the Secretary of Energy shall submit to Congress a report containing information responding to the following questions regarding the Formerly Utilized Sites Remedial Action Program:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>How many Formerly Utilized Sites remain to be remediated, what portions of these remaining sites have completed remediation (including any offsite contamination), what portions of the sites remain to be remediated (including any offsite contamination), what types of contaminants are present at <page identifier="/us/stat/111/2054">111 STAT. 2054</page>each site, and what are the projected timeframes for completing remediation at each site?</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>What is the cost of the remaining response actions necessary to address actual or threatened releases of hazardous substances at each Formerly Utilized Site, including any contamination that is present beyond the perimeter of the facilities?</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>For each site, how much will it cost to remediate the radioactive contamination, and how much will it cost to remediate the non-radioactive contamination?</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>How many sites potentially involve private parties that could be held responsible for remediation costs, including remediation costs related to offsite contamination?</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>What type of agreements under the Formerly Utilized Sites Remedial Action Program have been entered into with private parties to resolve the level of liability for remediation costs at these facilities, and to what extent have these agreements been tied to a distinction between radioactive and nonradioactive contamination present at these sites?</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>What efforts have been undertaken by the Department to ensure that the settlement agreements entered into with private parties to resolve liability for remediation costs at these facilities have been consistent on a program-wide basis?</content></paragraph> </section> </subtitle> <num value="XXXII">TITLE XXXII—</num><heading>DEFENSE NUCLEAR FACILITIES SAFETY BOARD</heading> <toc> <referenceItem role="section"><designator>Sec. 3201.</designator> <label>Authorization.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3202.</designator> <label>Report on external regulation of defense nuclear facilities.</label></referenceItem> </toc> <section> <num value="3201">SEC. 3201. </num><heading>AUTHORIZATION.</heading> <content>There are authorized to be appropriated for fiscal year 1998, $17,500,000 for the operation of the Defense Nuclear Facilities Safety Board under chapter 21 of the Atomic Energy Act of 1954 (42 U.S.C. 2286 et seq.).</content> </section> <section> <num value="3202">SEC. 3202. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2286">42 USC 2286 note</ref>.</p></sidenote><heading>REPORT ON EXTERNAL REGULATION OF DEFENSE NUCLEAR FACILITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Reporting Requirement</inline>.—</heading><chapeau>The Defense Nuclear Facilities Safety Board (in this section referred to as the “Board”) shall prepare a report and make recommendations on its role in the Department of Energy’s decision to establish external regulation of defense nuclear facilities. The report shall include the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>An assessment of the value of and the need for the Board to continue to perform the functions specified under chapter 21 of the Atomic Energy Act of 1954 (42 U.S.C. 2286 et seq.).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>An assessment of the relationship between the functions of the Board and a proposal by the Department of Energy to place Department of Energy defense nuclear facilities under the jurisdiction of external regulatory agencies.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>An assessment of the functions of the Board and whether there is a need to modify or amend such functions.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>An assessment of the relative advantages and disadvantages to the Department and the public of continuing the functions of the Board with respect to Department of Energy defense<page identifier="/us/stat/111/2055">111 STAT. 2055</page>nuclear facilities and replacing the activities of the Board with external regulation of such facilities.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>A list of all existing or planned Department of Energy defense nuclear facilities that are similar to facilities under the regulatory jurisdiction of the Nuclear Regulatory Commission.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>A list of all Department of Energy defense nuclear facilities that are in compliance with all applicable Department cf Energy orders, regulations, and requirements relating to the design, construction, operation, and decommissioning of defense nuclear facilities.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>A list of all Department of Energy defense nuclear facilities that have implemented, pursuant to an implementation plan, recommendations made by the Board and accepted by the Secretary of Energy.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>A list of Department of Energy defense nuclear facilities that have a function related to Department weapons activities.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><subparagraph class="inline"><num value="A">(A) </num><chapeau>A list of each existing defense nuclear facility that the Board determines—</chapeau> <clause class="indent2 fontsize10"><num value="i">(i) </num><content>should continue to stay within the jurisdiction of the Board for a period of time or indefinitely; and</content></clause> <clause class="indent2 fontsize10"><num value="ii">(ii) </num><content>should come under the jurisdiction of an outside regulatory authority.</content></clause> </subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>An explanation of the determinations made under subparagraph (A).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10) </num><content>For any existing facilities that should, in the opinion of the Board, come under the jurisdiction of an outside regulatory authority, the date when this move would occur and the period of time necessary for the transition.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="11">(11) </num><content>A list of any proposed Department of Energy defense nuclear facilities that should come under the Board’s jurisdiction.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="12">(12) </num><content>An assessment of regulatory and other issues associated with the design, construction, operation, and decommissioning of facilities that are not owned by the Department of Energy but which would provide services to the Department of Energy.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="13">(13) </num><content>An assessment of the role of the Board, if any, in privatization projects undertaken by the Department.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="14">(14) </num><content>An assessment of the role of the Board, if any, in any tritium production facilities.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="15">(15) </num><content>An assessment of the comparative advantages and disadvantages to the Department of Energy in the event some or all Department of Energy defense nuclear facilities were no longer included in the functions of the Board and were regulated by the Nuclear Regulatory Commission.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="16">(16) </num><content>A comparison of the cost, as identified by the Nuclear Regulatory Commission, that would be incurred at a gaseous diffusion plant to comply with regulations issued by the Nuclear Regulatory Commission, with the cost that would be incurred by a gaseous diffusion plant if such a plant was considered to be a Department of Energy defense nuclear facility as defined by chapter 21 of the Atomic Energy Act of 1954 (42 U.S.C. 2286 et seq.).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Comments on Report</inline>.—</heading><content>Before submission of the report to Congress under subsection (c), the Board shall transmit the report to the Secretary of Energy and the Nuclear Regulatory <page identifier="/us/stat/111/2056">111 STAT. 2056</page>Commission. The Secretary and the Commission shall provide their comments on the report to both the Board and to Congress.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Submission to Congress</inline>.—</heading><content>Not later than six months after the date of the enactment of this Act, the Board shall provide to Congress an interim report on the status of the implementation of this section. Not later than one year after the date of the enactment of this Act, and not earlier than 30 days after receipt of comments from the Secretary of Energy and the Nuclear Regulatory Commission under subsection (b), the Board shall submit to Congress the report required under subsection (a).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Definition</inline>.—</heading><content>In this section, the term “Department of Energy defense nuclear facility” has the meaning provided by section 318 of the Atomic Energy Act of 1954 (42 U.S.C. 2286g).</content> </subsection> </section> <num value="XXXIII">TITLE XXXIII—</num><heading>NATIONAL DEFENSE STOCKPILE</heading> <toc> <referenceItem role="section"><designator>Sec. 3301.</designator> <label>Definitions.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3302.</designator> <label>Authorized uses of stockpile funds.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3303.</designator> <label>Disposal of beryllium copper master alloy in National Defense Stockpile.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3304.</designator> <label>Disposal of titanium sponge in National Defense Stockpile.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3305.</designator> <label>Disposal of cobalt in National Defense Stockpile.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3306.</designator> <label>Required procedures for disposal of strategic and critical materials.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3307.</designator> <label>Return of surplus platinum from the Department of the Treasury.</label></referenceItem> </toc> <section> <num value="3301">SEC. 3301. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t50/s98d">50 USC 98d note</ref>.</p></sidenote><heading>DEFINITIONS.</heading> <chapeau>In this title:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The term “National Defense Stockpile” means the stockpile provided for in section 4 of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98c).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The term “National Defense Stockpile Transaction Fund” means the fund in the Treasury of the United States established under section 9(a) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h(a)).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The term “Market Impact Committee” means the Market Impact Committee established under section 10(c) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h–1(c)).</content></paragraph> </section> <section> <num value="3302">SEC. 3302. </num><heading>AUTHORIZED USES OF STOCKPILE FUNDS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Obligation of Stockpile Funds</inline>—</heading><content>During fiscal year 1998, the National Defense Stockpile Manager may obligate up to $73,000,000 of the funds in the National Defense Stockpile Transaction Fund for the authorized uses of such funds under section 9(b)(2) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h(b)(2)).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Additional Obligations</inline>.—</heading><content>The National Defense Stockpile Manager may obligate amounts in excess of the amount specified in subsection (a) if the National Defense Stockpile Manager notifies Congress that extraordinary or emergency conditions necessitate the additional obligations. The National Defense Stockpile Manager may make the additional obligations described in the notification after the end of the 45-day period beginning on the date Congress receives the notification.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Limitations</inline>.—</heading><content>The authorities provided by this section shall be subject to such limitations as may be provided in appropriations Acts.<page identifier="/us/stat/111/2057">111 STAT. 2057</page></content> </subsection> </section> <section> <num value="3303">SEC. 3303. </num><heading>DISPOSAL OF BERYLLIUM COPPER MASTER ALLOY IN NATIONAL DEFENSE STOCKPILE.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t50/s98d">50 USC 98d note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Disposal Authorization</inline>.—</heading><content>Pursuant to section 5(b) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98d(b)), the National Defense Stockpile Manager may dispose of all beryllium copper master alloy from the National Defense Stockpile as part of continued efforts to modernize the stockpile.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Precondition for Disposal</inline>.—</heading><content>Before beginning the disposal of beryllium copper master alloy under subsection (a), the National Defense Stockpile Manager shall certify to Congress that the disposal of beryllium copper master alloy will not adversely affect the capability of the National Defense Stockpile to supply the strategic and critical material needs of the United States.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Consultation With Market Impact Committee</inline>.—</heading><content>In disposing of beryllium copper master alloy under subsection (a), the National Defense Stockpile Manager shall consult with the Market Impact Committee to ensure that the disposal of beryllium copper master alloy does not disrupt the domestic beryllium industry.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Extended Sales Contracts</inline>.—</heading><content>The National Defense Stockpile Manager shall provide for the use of long-term sales contracts for the disposal of beryllium copper master alloy under subsection (a) so that the domestic beryllium industry can re-absorb this material into the market in a gradual and nondisruptive manner. However, no such contract shall provide for the disposal of beryllium copper master alloy over a period longer than eight years, beginning on the date of the commencement of the first contract under this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Relationship to Other Disposal Authority</inline>.—</heading><content>The disposal authority provided in subsection (a) is new disposal authority and is in addition to, and shall not affect, any other disposal authority provided by law regarding materials in the National Defense Stockpile.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num><heading><inline class="smallCaps">Beryllium Copper Master Alloy Defined</inline>.—</heading><content>For purposes of this section, the term “beryllium copper master alloy” means an alloy of nominally four percent beryllium in copper.</content> </subsection> </section> <section> <num value="3304">SEC. 3304. </num><heading>DISPOSAL OF TITANIUM SPONGE IN NATIONAL DEFENSE STOCKPILE.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t50/s98d">50 USC 98d note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Disposal Required</inline>.—</heading><content>Subject to subsection (b), the National Defense Stockpile Manager shall dispose of 34,800 short tons of titanium sponge contained in the National Defense Stockpile provided for in section 4 of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98c) and excess to stockpile requirements.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Consultation With Market Impact Committee</inline>.—</heading><content>In disposing of titanium sponge under subsection (a), the National Defense Stockpile Manager shall consult with the Market Impact Committee to ensure that the disposal of titanium sponge does not disrupt the domestic titanium industry.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Relationship to Other Disposal Authority</inline>.—</heading><content>The disposal authority provided in subsection (a) is new disposal authority and is in addition to, and shall not affect, any other disposal authority provided by law regarding materials in the National Defense Stockpile.</content> </subsection> </section> <section> <num value="3305">SEC. 3305. </num><heading>DISPOSAL OF COBALT IN NATIONAL DEFENSE STOCKPILE. </heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t50/s98d">50 USC 98d note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Disposal Required</inline>.—</heading><chapeau>Subject to subsections (b) and (c), the President shall dispose of cobalt contained in the National <page identifier="/us/stat/111/2058">111 STAT. 2058</page>Defense Stockpile so as to result in receipts to the United States in amounts equal to—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>$20,000,000 during fiscal year 2003;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>$30,000,000 during fiscal year 2004;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>$34,000,000 during fiscal year 2005;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>$34,000,000 during fiscal year 2006; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>$34,000,000 during fiscal year 2007.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Limitation on Disposal Quantity</inline>.—</heading><content>The total quantity of cobalt authorized for disposal by the President under subsection (a) may not exceed 14,058,014 pounds.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Minimization of Disruption and Loss</inline>.—</heading><chapeau>The President may not dispose of cobalt under subsection (a) to the extent that the disposal will result in—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>undue disruption of the usual markets of producers, processors, and consumers of cobalt; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>avoidable loss to the United States.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Treatment of Receipts</inline>.—</heading><content>Notwithstanding section 9 of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h), funds received as a result of the disposal of cobalt under subsection (a) shall be deposited into the general fund of the Treasury.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num><heading><inline class="smallCaps">Relationship to Other Disposal Authority</inline>.—</heading><content>The disposal authority provided in subsection (a) is new disposal authority and is in addition to, and shall not affect, any other disposal authority provided by law regarding materials in the National Defense Stockpile.</content> </subsection> </section> <section> <num value="3306">SEC. 3306. </num><heading>REQUIRED PROCEDURES FOR DISPOSAL OF STRATEGIC AND CRITICAL MATERIALS.</heading> <content>Section 6(b) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98e(b)) is amended in the first sentence by striking out “materials from the stockpile shall be made by formal advertising or competitive negotiation procedures.” and inserting in lieu thereof “strategic and critical materials from the stockpile shall be made in accordance with the next sentence”.</content> </section> <section> <num value="3307">SEC. 3307. </num><heading>RETURN OF SURPLUS PLATINUM FROM THE DEPARTMENT OF THE TREASURY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Return of Platinum to Stockpile</inline>.—</heading><content>Subject to subsection (b), the Secretary of the Treasury, upon the request of the Secretary of Defense, shall return to the Secretary of Defense for sale or other disposition platinum of the National Defense Stockpile that has been loaned to the Department of the Treasury by the Secretary of Defense, acting as the stockpile manager. The quantity requested and required to be returned shall be any quantity that the Secretary of Defense determines appropriate for sale or other disposition.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Alternative Transfer of Funds</inline>.—</heading><content>The Secretary of the Treasury, with the concurrence of the Secretary of Defense, may transfer to the Secretary of Defense funds in a total amount that is equal to the fair market value of any platinum requested under subsection (a) and not returned. A transfer of funds under this subsection shall be a substitute for a return of platinum under subsection (a). Upon a transfer of funds as a substitute for a return of platinum, the platinum shall cease to be part of the National Defense Stockpile. A transfer of funds under this subsection shall be charged to any appropriation for the Department of the Treasury and shall be credited to the National Defense Stockpile Transaction Fund.<page identifier="/us/stat/111/2059">111 STAT. 2059</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Responsibility for Costs</inline>.—</heading><content>The return of platinum under subsection (a) by the Secretary of the Treasury shall be made without the expenditure of any funds available to the Department of Defense. The Secretary of the Treasury shall be responsible for all costs incurred in connection with the return, such as transportation, storage, testing, refining, or casting costs.</content> </subsection> </section> <num value="XXXIV">TITLE XXXIV—</num><heading>NAVAL PETROLEUM RESERVES</heading> <toc> <referenceItem role="section"><designator>Sec. 3401.</designator> <label>Authorization of appropriations.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3402.</designator> <label>Price requirement on sale of certain petroleum during fiscal year 1998.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3403.</designator> <label>Repeal of requirement to assign Navy officers to Office of Naval Petroleum and Oil Shale Reserves.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3404.</designator> <label>Transfer of jurisdiction, Naval Oil Shale Reserves Numbered 1 and 3.</label></referenceItem> </toc> <section> <num value="3401">SEC. 3401. </num><heading>AUTHORIZATION OF APPROPRIATIONS.</heading> <content>There is hereby authorized to be appropriated to the Secretary of Energy $117,000,000 for fiscal year 1998 for the purpose of carrying out activities under chapter 641 of title 10, United States Code, relating to the naval petroleum reserves (as defined in section 7420(2) of such title). Funds appropriated pursuant to such authorization shall remain available until expended.</content> </section> <section> <num value="3402">SEC. 3402. </num><heading>PRICE REQUIREMENT ON SALE OF CERTAIN PETROLEUM DURING FISCAL YEAR 1998.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s7430">10 USC 7430 note</ref>.</p></sidenote> <content>Notwithstanding section 7430(b)(2) of title 10, United States Code, during fiscal year 1998, any sale of any part of the United States share of petroleum produced from Naval Petroleum Reserves Numbered 1, 2, and 3 shall be made at a price not less than 90 percent of the current sales price, as estimated by the Secretary of Energy, of comparable petroleum in the same area.</content> </section> <section> <num value="3403">SEC. 3403. </num><heading>REPEAL OF REQUIREMENT TO ASSIGN NAVY OFFICERS TO OFFICE OF NAVAL PETROLEUM AND OIL SHALE RESERVES.</heading> <content>Section 2 of Public Law 96–137 (42 U.S.C. 7156a) is repealed.</content> </section> <section> <num value="3404">SEC. 3404. </num><heading>TRANSFER OF JURISDICTION, NAVAL OIL SHALE RESERVES NUMBERED 1 AND 3.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Transfer Required</inline>.—</heading><content>Chapter 641 of title 10, United States Code, is amended by adding at the end the following new section: <quotedContent> <section> <num value="7439">“§ 7439. </num><heading>Certain oil shale reserves: transfer of jurisdiction and petroleum exploration, development, and production</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num><heading><inline class="smallCaps">Transfer Required</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Upon the enactment of this section, the Secretary of Energy shall transfer to the Secretary of the Interior administrative jurisdiction over all public domain lands included within Oil Shale Reserve Numbered 1 and those public domain lands included within the undeveloped tracts of Oil Shale Reserve Numbered 3.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>Not later than one year after the date of the enactment of this section, the Secretary of Energy shall transfer to the Secretary of the Interior administrative jurisdiction over those public domain lands included within the developed tract of Oil Shale Reserve Numbered 3, which consists of approximately 6,000 acres <page identifier="/us/stat/111/2060">111 STAT. 2060</page>and 24 natural gas wells, together with pipelines and associated facilities.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>Notwithstanding the transfer of jurisdiction, the Secretary of Energy shall continue to be responsible for all environmental restoration, waste management, and environmental compliance activities that are required under Federal and State laws with respect to conditions existing on the lands at the time of the transfer.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="4">“(4) </num><content>Upon the transfer to the Secretary of the Interior of jurisdiction over public domain lands under this subsection, the other provisions of this chapter shall cease to apply with respect to the transferred lands.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Authority To Lease</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Beginning on the date of the enactment of this section, or as soon thereafter as practicable, the Secretary of the Interior shall enter into leases with one or more private entities for the purpose of exploration for, and development and production of, petroleum (other than in the form of oil shale) located on or in public domain lands in Oil Shale Reserves Numbered 1 and 3 (including the developed tract of Oil Shale Reserve Numbered 3). Any such lease shall be made in accordance with the requirements of the Mineral Leasing Act (30 U.S.C. 181 et seq.) regarding the lease of oil and gas lands and shall be subject to valid existing rights.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>Notwithstanding the delayed transfer of the developed tract of Oil Shale Reserve Numbered 3 under subsection (a)(2), the Secretary of the Interior shall enter into a lease under paragraph (1) with respect to the developed tract before the end of the one-year period beginning on the date of the enactment of this section.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Management</inline>.—</heading><content>The Secretary of the Interior, acting through the Director of the Bureau of Land Management, shall manage the lands transferred under subsection (a) in accordance with the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.) and other laws applicable to the public lands.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Transfer of Existing Equipment</inline>.—</heading><content>The lease of lands by the Secretary of the Interior under this section may include the transfer, at fair market value, of any well, gathering line, or related equipment owned by the United States on the lands transferred under subsection (a) and suitable for use in the exploration, development, or production of petroleum on the lands.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Cost Minimization</inline>.—</heading><content>The cost of any environmental assessment required pursuant to the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) in connection with a proposed lease under this section shall be paid out of unobligated amounts available for administrative expenses of the Bureau of Land Management.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f) </num><heading><inline class="smallCaps">Treatment of Receipts</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Notwithstanding section 35 of the Mineral Leasing Act (30 U.S.C. 191), all moneys received during the period specified in paragraph (2) from a lease under this section (including moneys in the form of sales, bonuses, royalties (including interest charges collected under the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1701 et seq.)), and rentals) shall be covered into the Treasury of the United States and shall not be subject to distribution to the States pursuant to subsection (a) of such section 35. Subject to a specific authorization and appropriation for this purpose, such moneys may be used <page identifier="/us/stat/111/2061">111 STAT. 2061</page>for reimbursement of environmental restoration, waste management, and environmental compliance costs incurred by the United . States with respect to the lands transferred under subsection (a).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><chapeau>The period referred to in this subsection is the period beginning on the date of the enactment of this section and ending on the date on which the Secretary of Energy and the Secretary of the Interior jointly certify to Congress that the sum of the moneys deposited in the Treasury under paragraph (1) is equal to the total of the following:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>The cost of all environmental restoration, waste management, and environmental compliance activities incurred by the United States with respect to the lands transferred under subsection (a).</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>The cost to the United States to originally install wells, gathering lines, and related equipment on the transferred lands and any other cost incurred by the United States with respect to the lands.”.</content></subparagraph> </paragraph> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections at the beginning of such chapter is amended by adding at the end the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“7439.</designator> <label>Certain oil shale reserves: transfer of jurisdiction and petroleum exploration, development, and production.”.</label></referenceItem> </toc> </quotedContent> </content></subsection> </section> <num value="XXXV">TITLE XXXV—</num><heading>PANAMA CANAL COMMISSION</heading> <toc> <referenceItem role="subtitle"><designator>Subtitle A—</designator><label>Authorization of Expenditures From Revolving Fund</label></referenceItem> <referenceItem role="section"><designator>Sec. 3501.</designator> <label>Short title.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3502.</designator> <label>Authorization of expenditures.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3503.</designator> <label>Purchase of vehicles.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3504.</designator> <label>Expenditures only in accordance with treaties.</label></referenceItem> <referenceItem role="subtitle"><designator>Subtitle B—</designator><label>Facilitation of Panama Canal Transition</label></referenceItem> <referenceItem role="section"><designator>Sec. 3511.</designator> <label>Short title; references.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3512.</designator> <label>Definitions relating to canal transition.</label></referenceItem> <referenceItem role="part"><designator>Part I—</designator><label>Transition Matters Relating to Commission Officers and Employees</label></referenceItem> <referenceItem role="section"><designator>Sec. 3521.</designator> <label>Authority for the Administrator of the Commission to accept appointment as the Administrator of the Panama Canal Authority.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3522.</designator> <label>Post-Canal transfer personnel authorities.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3523.</designator> <label>Enhanced authority of Commission to establish compensation of Commission officers and employees.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3524.</designator> <label>Travel, transportation, and subsistence expenses for Commission personnel no longer subject to Federal travel regulation.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3525.</designator> <label>Enhanced recruitment and retention authorities.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3526.</designator> <label>Transition separation incentive payments.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3527.</designator> <label>Labor-management relations.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3528.</designator> <label>Availability of Panama Canal Revolving Fund for severance pay for certain employees separated by Panama Canal Authority after Canal Transfer Date.</label></referenceItem> <referenceItem role="part"><designator>Part II—</designator><label>Transition Matters Relating to Operation and Administration of Canal</label></referenceItem> <referenceItem role="section"><designator>Sec. 3541.</designator> <label>Establishment of procurement system and Board of Contract Appeals.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3542.</designator> <label>Transactions with the Panama Canal Authority.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3543.</designator> <label>Time limitations on filing of claims for damages</label></referenceItem> <referenceItem role="section"><designator>Sec. 3544.</designator> <label>Tolls for small vessels.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3545.</designator> <label>Date of actuarial evaluation of FECA liability.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3546.</designator> <label>Appointment of notaries public.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3547.</designator> <label>Commercial services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3548.</designator> <label>Transfer from President to Commission of certain regulatory functions relating to employment classification appeals.<page identifier="/us/stat/111/2062">111 STAT. 2062</page></label></referenceItem> <referenceItem role="section"><designator>Sec. 3549.</designator> <label>Enhanced printing authority.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3550.</designator> <label>Technical and conforming amendments.</label></referenceItem> </toc> <subtitle> <num value="A">Subtitle A—</num><sidenote><p class="indent0 firstIndent0 fontsize8">Panama Canal Commission Authorization Act for Fiscal Year 1998.</p></sidenote><heading>Authorization of Expenditures From Revolving Fund</heading> <section> <num value="3501">SEC. 3501. </num><heading>SHORT TITLE.</heading> <content>This subtitle may be cited as the “Panama Canal Commission Authorization Act for Fiscal Year 1998”.</content> </section> <section> <num value="3502">SEC. 3502. </num><heading>AUTHORIZATION OF EXPENDITURES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>Subject to subsection (b), the Panama Canal Commission is authorized to use amounts in the Panama Canal Revolving Fund to make such expenditures within the limits of funds and borrowing authority available to it in accordance with law, and to make such contracts and commitments, as may be necessary under the Panama Canal Act of 1979 (22 U.S.C. 3601 et seq.) for the operation, maintenance, improvement, and administration of the Panama Canal for fiscal year 1998.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Limitations</inline>.—</heading><chapeau>For fiscal year 1998, the Panama Canal Commission may expend from funds in the Panama Canal Revolving Fund not more than $85,000 for official reception and representation expenses, of which—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>not more than $23,000 may be used for official reception and representation expenses of the Supervisory Board of the Commission;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>not more than $12,000 may be used for official reception and representation expenses of the Secretary of the Commission; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>not more than $50,000 may be used for official reception and representation expenses of the Administrator of the Commission.</content></paragraph> </subsection> </section> <section> <num value="3503">SEC. 3503. </num><heading>PURCHASE OF VEHICLES.</heading> <content>Notwithstanding any other provision of law, the funds available to the Commission shall be available for the purchase and transportation to the Republic of Panama of passenger motor vehicles, the purchase price of which shall not exceed $22,000 per vehicle.</content> </section> <section> <num value="3504">SEC. 3504. </num><heading>EXPENDITURES ONLY IN ACCORDANCE WITH TREATIES.</heading> <content>Expenditures authorized under this subtitle may be made only in accordance with the Panama Canal Treaties of 1977 and any law of the United States implementing those treaties.</content> </section> </subtitle> <subtitle> <num value="B">Subtitle B—</num><sidenote><p class="indent0 firstIndent0 fontsize8">Panama Canal Transition Facilitation Act of 1997.</p></sidenote><heading>Facilitation of Panama Canal Transition</heading> <section> <num value="3511">SEC. 3511. </num><heading>SHORT TITLE; REFERENCES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s3601">22 USC 3601 note</ref>.</p></sidenote><heading><inline class="smallCaps">Short Title</inline>.—</heading><content>This subtitle may be cited as the “Panama Canal Transition Facilitation Act of 1997”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">References</inline>.—</heading><content>Except as otherwise expressly provided, whenever in this subtitle an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section <page identifier="/us/stat/111/2063">111 STAT. 2063</page>or other provision of the Panama Canal Act of 1979 (22 U.S.C. 3601 et seq.).</content> </subsection> </section> <section> <num value="3512">SEC. 3512. </num><heading>DEFINITIONS RELATING TO CANAL TRANSITION.</heading> <content>Section 3 (22 U.S.C. 3602) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><chapeau>For purposes of this Act:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>The term ‘Canal Transfer Date’ means December 31, 1999, such date being the date specified in the Panama Canal Treaty of 1977 for the transfer of the Panama Canal from the United States of America to the Republic of Panama.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The term ‘Panama Canal Authority’ means the entity created by the Republic of Panama to succeed the Panama Canal Commission as of the Canal Transfer Date.”.</content></paragraph> </subsection> </quotedContent> </content></section> <part> <num value="I">PART I—</num><heading>TRANSITION MATTERS RELATING TO COMMISSION OFFICERS AND EMPLOYEES</heading> <section> <num value="3521">SEC. 3521. </num><heading>AUTHORITY FOR THE ADMINISTRATOR OF THE COMMISSION TO ACCEPT APPOINTMENT AS THE ADMINISTRATOR OF THE PANAMA CANAL AUTHORITY.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Authority for Dual Role</inline>.—</heading><content>Section 1103 (22 U.S.C. 3613) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><content>The Congress consents, for purposes of the 8th clause of article I, section 9 of the Constitution of the United States, to the acceptance by the individual serving as Administrator of the Commission of appointment by the Republic of Panama to the position of Administrator of the Panama Canal Authority. Such consent is effective only if that individual, while serving in both such positions, serves as Administrator of the Panama Canal Authority without compensation, except for payments by the Republic of Panama of travel and entertainment expenses, including per diem payments.”.</content> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Waiver of Ethics and Reporting Requirements</inline>.—</heading><content>Such section is further amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><chapeau>If before the Canal Transfer Date the Republic of Panama appoints as the Administrator of the Panama Canal Authority the individual serving as the Administrator of the Commission and if that individual accepts the appointment—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><chapeau>during any period during which that individual serves as both Administrator of the Commission and the Administrator of the Panama Canal Authority—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>the Foreign Agents Registration Act of 1938, as amended (22 U.S.C. 611 et seq.), shall not apply to that individual with respect to service as the Administrator of the Panama Canal Authority;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>that individual, with respect to participation in any particular matter as the Administrator of the Panama Canal Commission, is not subject to section 208(a) of title 18, United States Code, insofar as that section would otherwise apply to that matter only because the matter will have a direct and predictable effect on the financial interest of the Panama Canal Authority;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>that individual is not subject to sections 203 and 205 of title 18, United States Code, with respect to official <page identifier="/us/stat/111/2064">111 STAT. 2064</page>acts performed as an agent or attorney for or otherwise representing the Panama Canal Authority; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>that individual is not subject to sections 501(a) and 502(a)(4) of the Ethics in Government Act of 1978 (5 U.S.C. App.), with respect to compensation received for, and service in, the position of Administrator of the Panama Canal Authority; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>effective upon termination of the individual’s appointment as Administrator of the Panama Canal Commission at noon on the Canal Transfer Date, that individual is not subject to section 207 of title 18, United States Code, with respect to acts done in carrying out official duties as Administrator of the Panama Canal Authority.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> </section> <section> <num value="3522">SEC. 3522. </num><heading>POST-CANAL TRANSFER PERSONNEL AUTHORITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Waiver of Certain Post-Employment Restrictions for Commission Personnel Becoming Employees of the Panama Canal Authority</inline>.—</heading><content>Section 1112 (22 U.S.C. 3622) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 207 of title 18, United States Code, does not apply to a covered individual with respect to acts done in carrying out official duties as an officer or employee of the Panama Canal Authority.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>For purposes of paragraph (1), a covered individual is an officer or employee of the Panama Canal Authority who was an officer or employee of the Commission (other than the Administrator) and whose employment with the Commission terminated at noon on the Canal Transfer Date.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>This subsection is effective as of the Canal Transfer Date.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Consent of Congress for Acceptance by Reserve and Retired Members of the Uniformed Services of Employment by Panama Canal Authority</inline>.—</heading><content>Such section is further amended by adding after subsection (e), as added by subsection (a), the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>The Congress consents to the following persons accepting civil employment (and compensation for that employment) with the Panama Canal Authority for which the consent of the Congress is required by the last paragraph of section 9 of article I of the Constitution of the United States, relating to acceptance of emoluments, offices, or titles from a foreign government:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>Retired members of the uniformed services.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>Members of a reserve component of the armed forces.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">“(C) </num><content>Members of the Commissioned Reserve Corps of the Public Health Service.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The consent of the Congress under paragraph (1) is effective without regard to subsection (b) of section 908 of title 37, United States Code (relating to approval required for employment of Reserve and retired members by foreign governments).”.</content></paragraph> </subsection> </quotedContent> </content></subsection> </section> <section> <num value="3523">SEC. 3523. </num><heading>ENHANCED AUTHORITY OF COMMISSION TO ESTABLISH COMPENSATION OF COMMISSION OFFICERS AND EMPLOYEES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Repeal of Limitations on Commission Authority</inline>.—</heading><chapeau>The following provisions are repealed:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Section 1215 (22 U.S.C. 3655), relating to basic pay.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Section 1219 (22 U.S.C. 3659), relating to salary protection upon conversion of pay rate.<page identifier="/us/stat/111/2065">111 STAT. 2065</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Section 1225 (22 U.S.C. 3665), relating to minimum level of pay and minimum annual increases.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Savings Provision</inline>.—</heading><content>Section 1202 (22 U.S.C. 3642) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><chapeau>In the case of an individual who is an officer or employee of the Commission on the day before the date of the enactment of the Panama Canal Transition Facilitation Act of 1997 and who has not had a break in service with the Commission since that date, the rate of basic pay for that officer or employee on or after that date may not be less than the rate in effect for that officer or employee on the day before that date of enactment except—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>as provided in a collective bargaining agreement;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>as a result of an adverse action against the officer or employee; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>pursuant to a voluntary demotion.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Cross-Reference Amendments</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Section 1216 (22 U.S.C. 3656) is amended by striking out “1215” and inserting in lieu thereof “1202”.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Section 1218 (22 U.S.C. 3658) is amended by striking out “1215” and “1217” and inserting in lieu thereof “1202” and “1217(a)”, respectively.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Nonapplicability to Agencies in Panama Other Than Panama Canal Commission</inline>.—</heading><content>Section 1212(b)(3) (22 U.S.C. 3652(b)(3)) is amended by striking out “or the Panama Canal Act Amendments of 1996” and inserting in lieu thereof “, the Panama Canal Act Amendments of 1996 (subtitle B of title XXXV of Public Law 104–201; 110 Stat. 2860), or the Panama Canal Transition Facilitation Act of 1997”.</content> </subsection> </section> <section> <num value="3524">SEC. 3524. </num><heading>TRAVEL, TRANSPORTATION, AND SUBSISTENCE EXPENSES FOR COMMISSION PERSONNEL NO LONGER SUBJECT TO FEDERAL TRAVEL REGULATION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Repeal of Applicability of Title 5 Provisions</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Section 1210 (22 U.S.C. 3650) is amended by striking out subsections (a), (b), and (c).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>Section 1224 (22 U.S.C. 3664) is amended—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>by striking out paragraph (10): and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>by redesignating paragraphs (11) through (20) as paragraphs (10) through (19), respectively.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>Section 1210 is further amended—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>by redesignating subsection (d)(1) as subsection (a) and in that subsection striking out “paragraph (2)” and inserting in lieu thereof “subsection (b)”; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><chapeau>by redesignating subsection (d)(2) as subsection (b) and in that subsection—</chapeau> <clause class="indent2 fontsize10"><num value="i">(i) </num><content>striking out “Notwithstanding paragraph (1), an” and inserting in lieu thereof “An”; and</content></clause> <clause class="indent2 fontsize10"><num value="ii">(ii) </num><content>striking out “referred to in paragraph (1)” and inserting in lieu thereof “who is a citizen of the Republic of Panama”.</content></clause> </subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The heading of such section is amended to read as follows: <quotedContent> <level> <heading class="centered">“<inline class="smallCaps">air transportation</inline>”.</heading> </level> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s3650">22 USC 3650 note</ref>.</p></sidenote> shall take effect on January 1, 1999.<page identifier="/us/stat/111/2066">111 STAT. 2066</page></content> </subsection> </section> <section> <num value="3525">SEC. 3525. </num><heading>ENHANCED RECRUITMENT AND RETENTION AUTHORITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Recruitment, Relocation, and Retention Bonuses</inline>.—</heading><chapeau>Section 1217 (22 U.S.C. 3657) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by redesignating subsection (c) as subsection (e);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in subsection (e) (as so redesignated), by striking out “for the same or similar work performed in the United States by individuals employed by the Government of the United States” and inserting in lieu thereof “of the individual to whom the compensation is paid”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by inserting after subsection (b) the following new subsections: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><paragraph class="inline"><num value="1">(1) </num><content>The Commission may pay a recruitment bonus to an individual who is newly appointed to a position with the Commission, or a relocation bonus to an employee of the Commission who must relocate to accept a position, if the Commission determines that the Commission would be likely, in the absence of such a bonus, to have difficulty in filling the position.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>A recruitment or relocation bonus may be paid to an employee under this subsection only if the employee enters into an agreement with the Commission to complete a period of employment established in the agreement. If the employee voluntarily fails to complete such period of employment or is separated from service in such employment as a result of an adverse action before the completion of such period, the employee shall repay the entire amount of the bonus.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>A recruitment or relocation bonus under this subsection may be paid as a lump sum. A bonus under this subsection may not be considered to be part of the basic pay of an employee.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>The Commission may pay a retention bonus to an employee of the Commission if the Commission determines that—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>the employee has unusually high or unique qualifications and those qualifications make it essential for the Commission to retain the employee for a period specified by the Commission ending not later than the Canal Transfer Date, or the Commission otherwise has a special need for the services of the employee making it essential for the Commission to retain the employee for a period specified by the Commission ending not later than the Canal Transfer Date; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>the employee would be likely to leave employment with the Commission before the end of that period if the retention bonus is not paid.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><chapeau>A retention bonus under this subsection—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>shall be in a fixed amount;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>shall be paid on a pro rata basis (over the period specified by the Commission as essential for the retention of the employee), with such payments to be made at the same time and in the same manner as basic pay; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">“(C) </num><content>may not be considered to be part of the basic pay of an employee.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>A decision by the Commission to exercise or to not exercise the authority to pay a bonus under this subsection shall not be subject to review under any statutory procedure or any agency or negotiated grievance procedure except under any of the laws referred to in section 2302(d) of title 5, United States Code.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Educational Services</inline>.—</heading><content>Section 1321(e)(2) (22 U.S.C. 3731(e)(2)) is amended by striking out “and persons” and inserting in lieu thereof “, to other Commission employees when determined <page identifier="/us/stat/111/2067">111 STAT. 2067</page>by the Commission to be necessary for their recruitment or retention, and to other persons”.</content> </subsection> </section> <section> <num value="3526">SEC. 3526. </num><heading>TRANSITION SEPARATION INCENTIVE PAYMENTS.</heading> <content>Chapter 2 of title I (22 U.S.C. 3641 et seq.) is amended by adding at the end of subchapter III the following new section: <quotedContent> <level> <heading class="centered">“<inline class="smallCaps">transition separation incentive payments</inline></heading> <section> <num value="133">“<inline class="smallCaps">Sec</inline>. 1233. </num><subsection class="inline"><num value="a">(a) </num><chapeau>In applying to the Commission and employees<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s3673">22 USC 3673</ref>.</p></sidenote> of the Commission the provisions of section 663 of the Treasury, Postal Service, and General Government Appropriations Act, 1997 (as contained in section 101(f) of division A of Public Law 104–208; 110 Stat. 3009–383), relating to voluntary separation incentives for employees of certain Federal agencies (in this section referred to as ‘section 663’)—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><chapeau>the term ‘employee’ shall mean an employee of the Commission who has served in the Republic of Panama in a position with the Commission for a continuous period of at least three years immediately before the employee’s separation under an appointment without time limitation and who is covered under the Civil Service Retirement System or the Federal Employees’ Retirement System under subchapter III of chapter 83 or chapter 84, respectively, of title 5, United States Code, other than—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>an employee described in any of subparagraphs (A) through (F) of subsection (a)(2) of section 663; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>an employee of the Commission who, during the 24-month period preceding the date of separation, has received a recruitment or relocation bonus under section 1217(c) of this Act or who, within the 12-month period preceding the date of separation, received a retention bonus under section 1217(d) of this Act;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><chapeau>the strategic plan under subsection (b) of section 663 shall include (in lieu of the matter specified in subsection (b)(2) of that section)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>the positions to be affected, identified by occupational category and grade level;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>the number and amounts of separation incentive payments to be offered; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>a description of how such incentive payments will facilitate the successful transfer of the Panama Canal to the Republic of Panama;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>a separation incentive payment under section 663 may be paid to a Commission employee only to the extent necessary to facilitate the successful transfer of the Panama Canal by the United States of America to the Republic of Panama as required by the Panama Canal Treaty of 1977;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><chapeau>such a payment—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>may be in an amount determined by the Commission not to exceed $25,000; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>may be made (notwithstanding the limitation specified in subsection (c)(2)(D) of section 663) in the case of an eligible employee who voluntarily separates (whether by retirement or resignation) during the 90-day period beginning on the date of the enactment of this section or during the period beginning on October 1, 1998, and ending on December 31, 1998;<page identifier="/us/stat/111/2068">111 STAT. 2068</page></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><chapeau>in the case of not more than 15 employees who (as determined by the Commission) are unwilling to work for the Panama Canal Authority after the Canal Transfer Date and who occupy critical positions for which (as determined by the Commission) at least two years of experience is necessary to ensure that seasoned managers are in place on and after the Canal Transfer Date, such a payment (notwithstanding paragraph (4))—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>may be in an amount determined by the Commission not to exceed 50 percent of the basic pay of the employee; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>may be made (notwithstanding the limitation specified in subsection (c)(2)(D) of section 663) in the case of such an employee who voluntarily separates (whether by retirement or resignation) during the 90-day period beginning on the date of the enactment of this section; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6) </num><content>the provisions of subsection (f) of section 663 shall not apply.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><content>A decision by the Commission to exercise or to not exercise the authority to pay a transition separation incentive under this section shall not be subject to review under any statutory procedure or any agency or negotiated grievance procedure except under any of the laws referred to in section 2302(d) of title 5, United States Code.”.</content> </subsection> </section> </level> </quotedContent> </content></section> <section> <num value="3527">SEC. 3527. </num><heading>LABOR-MANAGEMENT RELATIONS.</heading> <content>Section 1271 (22 U.S.C. 3701) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><paragraph class="inline"><num value="1">(1) </num><content>This subsection applies to any matter that becomes the subject of collective bargaining between the Commission and the exclusive representative for any bargaining unit of employees of the Commission during the period beginning on the date of the enactment of this subsection and ending on the Canal Transfer Date.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>The resolution of impasses resulting from collective bargaining between the Commission and any such exclusive representative during that period shall be conducted in accordance with such procedures as may be mutually agreed upon between the Commission and the exclusive representative (without regard to any otherwise applicable provisions of chapter 71 of title 5, United States Code). Such mutually agreed upon procedures shall become effective upon transmittal by the Chairman of the Supervisory Board of the Commission to the Congress of notice of the agreement to use those procedures and a description of those procedures.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><content>The Federal Services Impasses Panel shall not have jurisdiction to resolve any impasse between the Commission and any such exclusive representative in negotiations over a procedure for resolving impasses.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><chapeau>If the Commission and such an exclusive representative do not reach an agreement concerning a procedure for resolving impasses with respect to a bargaining unit and transmit notice of the agreement under paragraph (2) on or before July 1, 1998, the following shall be the procedure by which collective bargaining impasses between the Commission and the exclusive representative for that bargaining unit shall be resolved:<page identifier="/us/stat/111/2069">111 STAT. 2069</page></chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>If bargaining efforts do not result in an agreement, either party may timely request the Federal Mediation and Conciliation Service to assist in achieving an agreement.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>If an agreement is not reached within 45 days after the date on which either party requests the assistance of the Federal Mediation and Conciliation Service in writing (or within such shorter period as may be mutually agreed upon by the parties), the parties shall be considered to be at an impasse and the Federal Mediation and Conciliation Service shall immediately notify the Federal Services Impasses Panel of the Federal Labor Relations Authority, which shall decide the impasse.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">“(C) </num><content>If the Federal Services Impasses Panel fails to issue a decision within 90 days after the date on which notice under subparagraph (B) is received by the Panel (or within such shorter period as may be mutually agreed upon by the parties), the efforts of the Panel shall be terminated.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="D">“(D) </num><content>In such a case, the Chairman of the Panel (or another member in the absence of the Chairman) shall immediately determine the matter by a drawing (conducted in such manner as the Chairman (or, in the absence of the Chairman, such other member) determines appropriate) between the last offer of the Commission and the last offer of the exclusive representative, with the offer chosen through such drawing becoming the binding resolution of the matter.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="4">“(4) </num><content>In the case of a notice of agreement described in paragraph (2)(A) that is transmitted to the Congress as described in the second sentence of that paragraph after July 1, 1998, the impasse resolution procedures covered by that notice shall apply to any impasse between the Commission and the other party to the agreement that is unresolved on the date on which that notice is transmitted to the Congress.”.</content></paragraph> </subsection> </quotedContent> </content></section> <section> <num value="3528">SEC. 3528. </num><heading>AVAILABILITY OF PANAMA CANAL REVOLVING FUND FOR SEVERANCE PAY FOR CERTAIN EMPLOYEES SEPARATED BY PANAMA CANAL AUTHORITY AFTER CANAL TRANSFER DATE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Availability of Revolving Fund</inline>.—</heading><content>Section 1302(a) (22 U.S.C. 3712(a)) is amended' by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="10">“(10) </num><content>Payment to the Panama Canal Authority, not later than the Canal Transfer Date, of such amount as is computed by the Commission to be the future amount of severance pay to be paid by the Panama Canal Authority to employees whose employment with the Authority is terminated, to the extent that such severance pay is attributable to periods of service performed with the Commission before the Canal Transfer Date ad assuming for purposes of such computation that the Panama Canal Authority, in paying severance pay to terminated employees, will provide for crediting of periods of service with the Commission).”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><chapeau>Stylistic Amendments.—Such section is further amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out “for—” in the matter preceding paragraph (1) and inserting in lieu thereof “for the following purposes:”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by capitalizing the initial letter of the first word in each of paragraphs (1) through (9);<page identifier="/us/stat/111/2070">111 STAT. 2070</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by striking out the semicolon at the end of each of paragraphs (1) through (7) and inserting in lieu thereof a period; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>by striking out and” at the end of paragraph (8) and inserting in lieu thereof a period.</content></paragraph> </subsection> </section> </part> <part> <num value="II">PART II—</num><heading>TRANSITION MATTERS RELATING TO OPERATION AND ADMINISTRATION OF CANAL</heading> <section> <num value="3541">SEC. 3541. </num><heading>ESTABLISHMENT OF PROCUREMENT SYSTEM AND BOARD OF CONTRACT APPEALS.</heading> <content>Title III of the Panama Canal Act of 1979 (22 U.S.C. 3601 et seq.) is amended by inserting after the title heading the following new chapter: <quotedContent> <chapter> <num value="1">“Chapter 1—</num><heading>Procurement</heading> <level> <heading class="centered">“<inline class="smallCaps">procurement system</inline></heading> <section> <num value="3101">“<inline class="smallCaps">Sec</inline>. 3101. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t32/s3861">22 USC 3861</ref>.</p></sidenote><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Panama Canal Acquisition Regulation</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>The Commission shall establish by regulation a comprehensive procurement system. The regulation shall be known as the ‘Panama Canal Acquisition Regulation’ (in this section referred to as the ‘Regulation’) and shall provide for the procurement of goods and services by the Commission in a manner that—</chapeau> <subparagraph class="indent0 fontsize10"><num value="A">“(A) </num><content>applies the fundamental operating principles and procedures in the Federal Acquisition Regulation;</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><content>uses efficient commercial standards of practice; and</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">“(C) </num><content>is suitable for adoption and uninterrupted use by the Republic of Panama after the Canal Transfer Date.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The Regulation shall contain provisions regarding the establishment of the Panama Canal Board of Contract Appeals described in section 3102.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Supplement to Regulation</inline>.—</heading><content>The Commission shall develop a Supplement to the Regulation (in this section referred to as the ‘Supplement’) that identifies both the provisions of Federal law applicable to procurement of goods and services by the Commission and the provisions of Federal law waived by the Commission under subsection (c).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Waiver Authority</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Subject to paragraph (2), the Commission shall determine which provisions of Federal law should not apply to procurement by the Commission and may waive those laws for purposes of the Regulation and Supplement.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><chapeau>For purposes of paragraph (1), the Commission may not waive—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>section 27 of the Office of Federal Procurement Policy Act (41 U.S.C. 423);</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>the Contract Disputes Act of 1978 (41 U.S.C. 601 et seq.), other than section 10(a) of such Act (41 U.S.C. 609(a)); or</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">“(C) </num><content>civil rights, environmental, or labor laws.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Consultation With Administrator for Federal Procurement Policy</inline>.—</heading><content>In establishing the Regulation and developing the Supplement, the Commission shall consult with the Administrator for Federal Procurement Policy.<page identifier="/us/stat/111/2071">111 STAT. 2071</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The Regulation and the Supplement<sidenote><p class="indent0 firstIndent0 fontsize8">Federal Register, publication.</p></sidenote> shall take effect on the date of publication in the Federal Register, or January 1, 1999, whichever is earlier.</content> </subsection> </section> </level> <level> <heading class="centered">“<inline class="smallCaps">panama canal board of contract appeals</inline></heading> <section> <num value="3102">“<inline class="smallCaps">Sec</inline>. 3102. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Establishment</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of Defense,<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s3862">22 USC 3862</ref>.</p></sidenote> in consultation with the Commission, shall establish a board of contract appeals, to be known as the Panama Canal Board of Contract Appeals, in accordance with section 8 of the Contract Disputes Act of 1978 (41 U.S.C. 607). Except as otherwise provided by this section, the Panama Canal Board of Contract Appeals (in this section referred to as the ‘Board’) shall be subject to the Contract Disputes Act of 1978 (41 U.S.C. 601 et seq.) in the same manner as any other agency board of contract appeals established under that Act.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The Board shall consist of three members. At least one member of the Board shall be licensed to practice law in the Republic of Panama. Individuals appointed to the Board shall take an oath of office, the form of which shall be prescribed by the Secretary of Defense.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><heading><inline class="smallCaps">Exclusive Jurisdiction To Decide Appeals</inline>.—</heading><content>Notwithstanding section 10(a)(1) of the Contract Disputes Act of 1978 (41 U.S.C. 609(a)(1)) or any other provision of law, the Board shall have exclusive jurisdiction to decide an appeal from a decision of a contracting officer under section 8(d) of such Act (41 U.S.C. 607(d)).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><heading><inline class="smallCaps">Exclusive Jurisdiction To Decide Protests</inline>.—</heading><chapeau>The Board shall decide protests submitted to it under this subsection by interested parties in accordance with subchapter V of title 31, United States Code. Notwithstanding section 3556 of that title, section 1491(b) of title 28, United States Code, and any other provision of law, the Board shall have exclusive jurisdiction to decide such protests. For purposes of this subsection—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>except as provided in paragraph (2), each reference to the Comptroller General in sections 3551 through 3555 of title 31, United States Code, is deemed to be a reference to the Board;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>the reference to the Comptroller General in section 3553(d)(3)(C)(ii) of such title is deemed to be a reference to both the Board and the Comptroller General;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>the report required by paragraph (1) of section 3554(e) of such title shall be submitted to the Comptroller General as well as the committees listed in such paragraph;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>the report required by paragraph (2) of such section shall be submitted to the Comptroller General as well as Congress; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><content>section 3556 of such title shall not apply to the Board, but nothing in this subsection shall affect the right of an interested party to file a protest with the appropriate contracting officer.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num><heading><inline class="smallCaps">Procedures</inline>.—</heading><content>The Board shall prescribe such procedures as may be necessary for the expeditious decision of appeals and protests under subsections (b) and (c).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><heading><inline class="smallCaps">Commencement</inline>.—</heading><content>The Board shall begin to function as soon as it has been established and has prescribed procedures under subsection (d), but not later than January 1, 1999.<page identifier="/us/stat/111/2072">111 STAT. 2072</page></content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f) </num><heading><inline class="smallCaps">Transition</inline>.—</heading><content>The Board shall have jurisdiction under subsections (b) and (c) over any appeals and protests filed on or after the date on which the Board begins to function. Any appeals and protests filed before such date shall remain before the forum in which they were filed.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g) </num><heading><inline class="smallCaps">Other Functions</inline>.—</heading><content>The Board may perform functions similar to those described in this section for such other matters or activities of the Commission as the Commission may determine and in accordance with regulations prescribed by the Commission.”.</content> </subsection> </section> </level> </chapter> </quotedContent> </content></section> <section> <num value="3542">SEC. 3542. </num><heading>TRANSACTIONS WITH THE PANAMA CANAL AUTHORITY.</heading> <chapeau>Section 1342 (22 U.S.C. 3752) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by designating the text of the section as subsection (a); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following new subsections: <quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num><content>The Commission may provide office space, equipment, supplies, personnel, and other in-kind services to the Panama Canal Authority on a nonreimbursable basis.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num><content>Any executive department or agency of the United States may, on a reimbursable basis, provide to the Panama Canal Authority materials, supplies, equipment, work, or services requested by the Panama Canal Authority, at such rates as may be agreed upon by that department or agency and the Panama Canal Authority”.</content> </subsection> </quotedContent> </content></paragraph> </section> <section> <num value="3543">SEC. 3543. </num><heading>TIME LIMITATIONS ON FILING OF CLAIMS FOR DAMAGES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Filing of Administrative Claims With Commission</inline>.—</heading><content>Sections 1411(a) (22 U.S.C. 3771(a)) and 1412 (22 U.S.C. 3772) are each amended in the last sentence by striking out “within 2 years after” and all that follows through “of 1985,” and inserting in lieu thereof “within one year after the date of the injury or the date of the enactment of the Panama Canal Transition Facilitation Act of 1997,”</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Filing of Judicial Actions</inline>.—</heading><chapeau>The penultimate sentence of section 1416 (22 U.S.C. 3776) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out “one year” the first place it appears and inserting in lieu thereof “180 days”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking out “claim, or” and all that follows through “of 1985,” and inserting in lieu thereof “claim or the date of the enactment of the Panama Canal Transition Facilitation Act of 1997,”.</content></paragraph> </subsection> </section> <section> <num value="3544">SEC. 3544. </num><heading>TOLLS FOR SMALL VESSELS.</heading> <chapeau>Section 1602(a) (22 U.S.C. 3792(a)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in the first sentence, by striking out “supply ships, and yachts” and inserting in lieu thereof “and supply ships”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following new sentence: “Tolls for small vessels (including yachts), as defined by the Commission, may be set at rates determined by the Commission without regard to the preceding provisions of this subsection.”.</content></paragraph> </section> <section> <num value="3545">SEC. 3545. </num><heading>DATE OF ACTUARIAL EVALUATION OF FECA LIABILITY.</heading> <content>Section 5(a) of the Panama Canal Commission Compensation Fund Act of 1988 (22 U.S.C. 3715c(a)) is amended by striking out “Upon the termination of the Panama Canal Commission” and inserting in lieu thereof “By March 31, 1998”.<page identifier="/us/stat/111/2073">111 STAT. 2073</page></content> </section> <section> <num value="3546">SEC. 3546. </num><heading>APPOINTMENT OF NOTARIES PUBLIC.</heading> <chapeau>Section 1102a (22 U.S.C. 3612a) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by redesignating subsection (g) as subsection (h); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting after subsection (f) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="g">“(g) </num><paragraph class="inline"><num value="1">(1) </num><content>The Commission may appoint any United States citizen to have the general powers of a notary public to perform, on behalf of Commission employees and their dependents outside the United States, any notarial act that a notary public is required or authorized to perform within the United States. Unless an earlier expiration is provided by the terms of the appointment, any such appointment shall expire three months after the Canal Transfer Date.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>Every notarial act performed by a person acting as a notary under paragraph (1) shall be as valid, and of like force and effect within the United States, as if executed by or before a duly authorized and competent notary public in the United States.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>The signature of any person acting as a notary under paragraph (1), when it appears with the title of that person’s office, is prima facie evidence that the signature is genuine, that the person holds the designated title, and that the person is authorized to perform a notarial act.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> </section> <section> <num value="3547">SEC. 3547. </num><heading>COMMERCIAL SERVICES.</heading> <content>Section 1102b (22 U.S.C. 3612b) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><content>The Commission may conduct and promote commercial activities related to the management, operation, or maintenance of the Panama Canal. Any such commercial activity shall be carried out consistent with the Panama Canal Treaty of 1977 and related agreements.”.</content> </subsection> </quotedContent> </content></section> <section> <num value="3546">SEC. 3546. </num><heading>TRANSFER FROM PRESIDENT TO COMMISSION OF CERTAIN REGULATORY FUNCTIONS RELATING TO EMPLOYMENT CLASSIFICATION APPEALS.</heading> <content>Sections 1221(a) and 1222(a) (22 U.S.C. 3661(a), 3662(a)) are amended by striking out “President” and inserting in lieu thereof “Commission”.</content> </section> <section> <num value="3549">SEC. 3549. </num><heading>ENHANCED PRINTING AUTHORITY.</heading> <content>Section 1306(a) (22 U.S.C. 3714b(a)) is amended by striking out “Section 501” and inserting in lieu thereof “Sections 501 through 517 and 1101 through 1123”.</content> </section> <section> <num value="550">SEC. 3550. </num><heading>TECHNICAL AND CONFORMING AMENDMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Clerical Amendments</inline>.—</heading><chapeau>The table of contents in section 1 is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out the item relating to section 1210 and inserting in lieu thereof the following: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 1210.</designator> <label>Air transportation.”;</label></referenceItem> </toc> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking out the items relating to sections 1215, 1219, and 1225;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by inserting after the item relating to section 1232 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 1233.</designator> <label>Transition separation incentive payments.”;</label></referenceItem> </toc> </quotedContent> </content></paragraph> <continuation class="indent0 fontsize10">and<page identifier="/us/stat/111/2074">111 STAT. 2074</page></continuation> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>by inserting after the item relating to the heading of title III the following: <quotedContent> <toc> <referenceItem role="chapter"><designator>“Chapter 1—</designator><label>Procurement</label></referenceItem> <referenceItem role="section"><designator>“Sec. 3101.</designator> <label>Procurement system.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 3102.</designator> <label>Panama Canal Board of Contract Appeals.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Amendment To Reflect Prior Change in Compensation of Administrator</inline>.—</heading><content>Section 5315 of title 5, United States Code, is amended by striking out the following: <quotedContent> <p class="indent0 fontsize10">“Administrator of the Panama Canal Commission.”.</p> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Amendments To Reflect Change in Travel and Transportation Expenses Authority</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Section 5724(a)(3) of title 5, United States Code, is amended by striking out “, the Commonwealth of Puerto Rico,” and all that follows through “Panama Canal Act of 1979” and inserting in lieu thereof “or the Commonwealth of Puerto Rico”.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>Section 5724a(j) of such title is amended—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">(A) </num><content>by inserting “<quotedText>and</quotedText>” after “Northern Mariana Islands,”; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>by striking out “United States, and” and all that follows through the period at the end and inserting in lieu thereof “United States.”.</content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s5724">5 USC 5724 note</ref>.</p></sidenote><content>The amendments made by this subsection shall take effect on January 1, 1999.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num><heading><inline class="smallCaps">Miscellaneous Technical Amendments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Section 3(b) (22 U.S.C. 3602(b)) is amended by striking out “the Canal Zone Code” and all that follows through “other laws” the second place it appears and inserting in lieu thereof “laws of the United States and regulations issued pursuant to such laws”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>The following provisions are each amended by striking out “the effective date of this Act” and inserting in lieu thereof “October 1, 1979”: sections 3(b), 3(c), 1112(b), and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s3602">22 USC 3602</ref>, 3622, 3731.</p></sidenote>1321(c)(1).</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">(B) </num><content>Section 1321(c)(2) is amended by striking out “such effective date” and inserting in lieu thereof “October 1, 1979”.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">(C) </num><content>Section 1231(c)(3)(A) (22 U.S.C. 3671(c)(3)(A)) is amended by striking out “the day before the effective date of this Act” and inserting in lieu thereof “September 30, 1979”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Section 1102a(h), as redesignated by section 3546(1), is amended by striking out “section 1102B” and inserting in lieu thereof “section 1102b”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Section 1110(b)(2) (22 U.S.C. 3620(b)(2)) is amended by striking out “section 16 of the Act of August 1, 1956 (22 U.S.C. 2680a),” and inserting in lieu thereof “section 207 of the Foreign Service Act of 1980 (22 U.S.C. 3927)”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Section 1212(b)(3) (22 U.S.C. 3652(b)(3)) is amended by striking out “as last in effect before the effective date of section 3530 of the Panama Canal Act Amendments of 1996” and inserting in lieu thereof “as in effect on September 22, 1996”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>Section 1243(c)(2) (22 U.S.C. 3681(c)(2)) is amended by striking out “retroactivity” and inserting in lieu thereof “retroactively”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>Section 1341(f) (22 U.S.C. 3751(f)) is amended by striking out “sections 1302(c)” and inserting in lieu thereof “sections 1302(b)”.<page identifier="/us/stat/111/2075">111 STAT. 2075</page></content></paragraph> </subsection> </section> </part> </subtitle> <num value="XXXVI">TITLE XXXVI—</num><heading>MARITIME ADMINISTRATION</heading> <toc> <referenceItem role="section"><designator>Sec. 3601.</designator> <label>Authorization of appropriations for fiscal year 1998.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3602.</designator> <label>Repeal of obsolete annual report requirement concerning relative cost of shipbuilding in the various coastal districts of the United States.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3603.</designator> <label>Provisions relating to maritime security fleet program.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3604.</designator> <label>Authority to utilize replacement vessels and capacity.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3605.</designator> <label>Authority to convey National Defense Reserve Fleet vessel.</label></referenceItem> <referenceItem role="section"><designator>Sec. 3606.</designator> <label>Determination of gross tonnage for purposes of tank vessel double hull requirements.</label></referenceItem> </toc> <section> <num value="3601">SEC. 3601. </num><heading>AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 1998.</heading> <chapeau>Funds are hereby authorized to be appropriated for fiscal year 1998, to be available without fiscal year limitation if so provided in appropriation Acts, for the use of the Department of Transportation for the Maritime Administration as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>For expenses necessary for operations and training activities, $70,000,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>For expenses under the loan guarantee program authorized by title XI of the Merchant Marine Act, 1936 (46 U.S.C. App. 1271 et seq.), $39,000,000 of which—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>$35,000,000 is for the cost (as defined in section 502(5) of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5))) of loan guarantees under the program; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>$4,000,000 is for administrative expenses related to loan guarantee commitments under the program.</content></subparagraph> </paragraph> </section> <section> <num value="3602">SEC. 3602. </num><heading>REPEAL OF OBSOLETE ANNUAL REPORT REQUIREMENT CONCERNING RELATIVE COST OF SHIPBUILDING IN THE VARIOUS COASTAL DISTRICTS OF THE UNITED STATES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Repeal</inline>.—</heading><content>Section 213 of the Merchant Marine Act, 1936 (46 U.S.C. App. 1123), is amended by striking out paragraph (c).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><chapeau>Such section is further amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out “on—” in the matter preceding paragraph (a) and inserting in lieu thereof “on the following:”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by redesignating paragraphs (a) and (b) as paragraphs (1) and (2), respectively;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by striking out the semicolon at the end of each of those paragraphs and inserting in lieu thereof a period; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>by realigning those paragraphs so as to be indented 2 ems from the left margin.</content></paragraph> </subsection> </section> <section> <num value="3603">SEC. 3603. </num><heading>PROVISIONS RELATING TO MARITIME SECURITY FLEET PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Authority of Contractors To Operate Self-Propelled Tank Vessels in Noncontiguous Domestic Trades</inline>.—</heading><content>Section 656(b) of the Merchant Marine Act, 1936 (46 U.S.C. App. 1187e(b)) is amended by inserting “<quotedText>(1)</quotedText>” after “(b)”, and by adding at the end the following new paragraph: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>Subsection (a) shall not apply to operation by a contractor of a self-propelled tank vessel in a noncontiguous domestic trade, or to ownership by a contractor of an interest in a self-propelled tank vessel that operates in a noncontiguous domestic trade.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Relief From Delay in Certain Operations Following Documentation</inline>.—</heading><content>Section 652(c) of the Merchant Marine Act, 1936 <page identifier="/us/stat/111/2076">111 STAT. 2076</page><sidenote><p class="indent0 firstIndent0 fontsize8">46 USC app. 1187a.</p></sidenote>(46 U.S.C. 1187a(c)) is amended by adding at the end the following: “<quotedText>The restrictions of section 901(b)(1) of this Act concerning the building, rebuilding, or documentation of a vessel in a foreign country shall not apply to a vessel for any day the operator of that vessel is receiving payments under an operating agreement under this subtitle.</quotedText>”.</content> </subsection> </section> <section> <num value="3604">SEC. 3604. </num><heading>AUTHORITY TO UTILIZE REPLACEMENT VESSELS AND CAPACITY.</heading> <content>Section 653(d)(1) of the Merchant Marine Act, 1936 (46 U.S.C. App. 1187b(d)(1)) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>a contractor or other person that commits to make available a vessel or vessel capacity under the Emergency Preparedness Program or another primary sealift readiness program approved by the Secretary of Defense may, during the activation of that vessel or capacity under that program, operate or employ in foreign commerce a foreign-flag vessel or foreign-flag vessel capacity as a temporary replacement for the activated vessel or capacity; and”.</content></paragraph> </quotedContent> </content></section> <section> <num value="3605">SEC. 3605. </num><heading>AUTHORITY TO CONVEY NATIONAL DEFENSE RESERVE FLEET VESSEL.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num><heading><inline class="smallCaps">Authority To Convey</inline>.—</heading><content>The Secretary of Transportation may convey all right, title, and interest of the Federal Government in and to the vessel GOLDEN BEAR (United States official number 239932) to the Artship Foundation, located in Oakland, California (in this section referred to as the “recipient”), for use as a multicultural center for the arts.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num><heading><inline class="smallCaps">Terms of Conveyance</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Delivery of vessel</inline>.—</heading><chapeau>In carrying out subsection (a), the Secretary shall deliver the vessel—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>at the place where the vessel is located on the date of conveyance;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>in its condition on that date; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>at no cost to the Federal Government.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Required conditions</inline>.—</heading><chapeau>The Secretary may not convey a vessel under this section unless—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the recipient agrees to hold the Government harmless for any claims arising from exposure to hazardous material, including asbestos and polychlorinated biphenyls, after conveyance of the vessel, except for claims arising before the date of the conveyance or from use of the vessel by the Government after that date; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the recipient has available, for use to restore the vessel, in the form of cash, liquid assets, or a written loan commitment, financial resources of at least $100,000. (3) Additional terms.—The Secretary may require such additional terms in connection with the conveyance authorized by this section as the Secretary considers appropriate.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num><heading><inline class="smallCaps">Other Unneeded Equipment</inline>.—</heading><content>The Secretary may convey to the recipient of the vessel conveyed under this section any unneeded equipment from other vessels in the National Defense Reserve Fleet, for use to restore the vessel conveyed under this section to museum quality.<page identifier="/us/stat/111/2077">111 STAT. 2077</page></content> </subsection> </section> <section> <num value="3606">SEC. 3606. </num><heading>DETERMINATION OF GROSS TONNAGE FOR PURPOSES OF TANK VESSEL DOUBLE HULL REQUIREMENTS.</heading> <content>Section 3703a of title 46, United States Code, is amended by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num><paragraph class="inline"><num value="1">(1) </num><content>For the purposes of this section and except as otherwise provided in paragraphs (2) and (3) of this subsection, the gross tonnage of a vessel shall be the gross tonnage that would have been recognized by the Secretary on July 1, 1997, as the tonnage measured under section 14502 of this title, or as an alternate tonnage measured under section 14302 of this title as prescribed by the Secretary under section 14104 of this title.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><subparagraph class="inline"><num value="A">(A) </num><chapeau>The Secretary may waive the application of paragraph (1) to a tank vessel if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>the owner of the tank vessel applies to the Secretary for the waiver before January 1, 1998;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><chapeau>the Secretary determines that—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I) </num><content>the owner of the tank vessel has entered into a binding agreement to alter the tank vessel in a shipyard in the United States to reduce the gross tonnage of the tank vessel by converting a portion of the cargo tanks of the tank vessel into protectively located segregated ballast tanks; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II) </num><content>that conversion will result in a significant reduction in the risk of a discharge of oil;</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num> <chapeau>at least 60 days before the date of the issuance of the waiver, the Secretary—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I) </num><content>publishes notice that the Secretary has received the application and made the determinations required by clause (ii), including a description of the agreement entered into pursuant to clause (ii)(I); and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II) </num><content>provides an opportunity for submission of comments regarding the application; and</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="iv">“(iv) </num><chapeau>the alterations referred to in clause (ii)(I) are completed before the later of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I) </num><content>the date by which the first special survey of the tank vessel is required to be completed after the date of the enactment of the National Defense Authorization Act for Fiscal Year 1998; or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II) </num><content>July 1, 1999.</content></subclause> </clause> </subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><content>A waiver under subparagraph (A) shall not be effective after the expiration of the 3-year period beginning on the first date on which the tank vessel would have been prohibited by subsection (c) from operating if the alterations referred to in subparagraph (A)(ii)(I) were not made.<page identifier="/us/stat/111/2078">111 STAT. 2078</page></content></subparagraph> </paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>This subsection does not apply to a tank vessel that, before July 1, 1997, had undergone, or was the subject of a contract for, alterations that reduce the gross tonnage of the tank vessel, as shown by reliable evidence acceptable to the Secretary”.</content></paragraph> </subsection> </quotedContent> </content></section> Approved November 18, 1997.
LEGISLATIVE HISTORY—H.R. 1119 (S. 924) (S. 936): HOUSE REPORTS: No. 105–132 (Comm. on National Security) and 105–340 (Comm. of Conference). SENATE REPORTS: No. 105–29 accompanying S. 924 and S. 936 (Comm. on Armed Services). CONGRESSIONAL RECORD. Vol. 143 (1997):

June 19, 20, 23–25, considered and passed House.

July 11, considered and passed Senate, amended.

Oct. 28, House agreed to conference report.

Nov. 5, Senate agreed to conference report.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):

Nov. 18, Presidential statement.

 Public Law 105–86: Making appropriations for Agriculture, Rural Development, Food and Drug Administration, and Related Agencies programs for the fiscal year ending September 30, 1998, and for other purposes. Public Law86 Public Law 105–86 111 Stat. 2079 1997-11-18 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2079

*Note: This law contains items that were cancelled by the President pursuant to the Line Item Veto Act. For more information, see the Federal Register entry under “LEGISLATIVE HISTORY” at the end of this law.

 Public Law105–86 105th Congress
An Act Making appropriations for Agriculture, Rural Development, Food and Drug Administration, and Related Agencies programs for the fiscal year ending September 30, 1998, and for other purposes.

Nov. 18, 1997

[H.R. 2160]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
That the

Agriculture, Rural Development, Food and Drag Administration, and Related Agencies Appropriations Act, 1998.

 following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for Agriculture, Rural Development, Food and Drug Administration, and Related Agencies programs for the fiscal year ending September 30, 1998, and for other purposes, namely:
<num value="I">TITLE I</num> <heading>AGRICULTURAL PROGRAMS</heading> <appropriations level="intermediate"> <heading>Production, Processing, and Marketing</heading> <subheading>Office of the Secretary</subheading> <appropriations level="small"> <heading>(including transfers of funds)</heading> <content>For necessary expenses of the Office of the Secretary of Agriculture, and not to exceed $75,000 for employment under 5 U.S.C. 3109, $2,836,000: <proviso><i>Provided,</i> That not to exceed $11,000 of this amount, along with any unobligated balances of representation funds in the Foreign Agricultural Service, shall be available for official reception and representation expenses, not otherwise provided for, as determined by the Secretary:</proviso> <proviso><i>Provided further,</i> That none of the funds appropriated or otherwise made available by this Act may be used to pay the salaries and expenses of personnel of the Department of Agriculture to carry out section 793(c)(1)(C) of Public Law 104–127:</proviso> <proviso><i>Provided further,</i> That none of the funds made available by this Act may be used to enforce section 793(d) of Public Law 104–127.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Executive Operations</heading> <appropriations level="small"> <heading>chief economist</heading> <content>For necessary expenses of the Chief Economist, including economic analysis, risk assessment, cost-benefit analysis, and the functions of the World Agricultural Outlook Board, as authorized by the Agricultural Marketing Act of 1946 (7 U.S.C. 1622g), and including employment pursuant to the second sentence of section <page identifier="/us/stat/111/2080">111 STAT. 2080</page>706(a) of the Organic Act of 1944 (7 U.S.C. 2225), of which not to exceed $5,000 is for employment under 5 U.S.C. 3109, $5,048,000.</content> </appropriations> <appropriations level="small"> <heading>national appeals division</heading> <content>For necessary expenses of the National Appeals Division, including employment pursuant to the second sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225), of which not to exceed $25,000 is for employment under 5 U.S.C. 3109, $11,718,000.</content> </appropriations> <appropriations level="small"> <heading>office of budget and program analysis</heading> <content>For necessary expenses of the Office of Budget and Program Analysis, including employment pursuant to the second sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225), of which not to exceed $5,000 is for employment under 5 U.S.C. 3109, $5,986,000.</content> </appropriations> <appropriations level="small"> <heading>office of the chief information officer</heading> <content>For necessary expenses of the Office of the Chief Information Officer, including employment pursuant to the second sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225), of which not to exceed $10,000 is for employment under 5 U.S.C. 3109, $4,773,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Office of the Chief Financial Officer</heading> <content>For necessary expenses of the Office of the Chief Financial Officer, including employment pursuant to the second sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225), of which not to exceed $10,000 is for employment under 5 U.S.C. 3109, $4,283,000: <proviso><i>Provided,</i> That the Chief Financial Officer shall actively market cross-servicing activities of the National Finance Center.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Office of the Assistant Secretary for Administration</heading> <content>For necessary salaries and expenses of the Office of the Assistant Secretary for Administration to carry out the programs funded in this Act, $613,000.</content> </appropriations> <appropriations level="intermediate"> <heading>Agriculture Buildings and Facilities and Rental Payments</heading> <subheading>(including transfers of funds)</subheading> <content>For payment of space rental and related costs pursuant to Public Law 92–313, including authorities pursuant to the 1984 delegation of authority from the Administrator of General Services to the Department of Agriculture under 40 U.S.C. 486, for programs and activities of the Department which are included in this Act, and for the operation, maintenance, and repair of Agriculture buildings, $123,385,000: <proviso><i>Provided,</i> That in the event an agency within the Department should require modification of space needs, the Secretary of Agriculture may transfer a share of that agency’s appropriation made available by this Act to this appropriation, or may transfer a share of this appropriation to that agency’s appropriation, but such transfers shall not exceed 5 percent of <page identifier="/us/stat/111/2081">111 STAT. 2081</page>the funds made available for space rental and related costs to or from this account. In addition, for construction, repair, improvement, extension, alteration, and purchase of fixed equipment or facilities as necessary to carry out the programs of the Department, where not otherwise provided, $5,000,000, to remain available until expended; and in addition, for necessary relocation expenses of the Department’s agencies, $2,700,000, to remain available until expended; making a total appropriation of $131,085,000.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Hazardous Waste Management</heading> <subheading>(including transfers of funds)</subheading> <content>For necessary expenses of the Department of Agriculture, to comply with the requirement of section 107(g) of the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. 9607(g), and section 6001 of the Resource Conservation and Recovery Act, 42 U.S.C. 6961, $15,700,000, to remain available until expended: <proviso><i>Provided,</i> That appropriations and funds available herein to the Department for Hazardous Waste Management may be transferred to any agency of the Department for its use in meeting all requirements pursuant to the above Acts on Federal and non-Federal lands.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Departmental Administration</heading> <subheading>(including transfers of funds)</subheading> <content>For Departmental Administration, $27,231,000, to provide for necessary expenses for management support services to offices of the Department and for general administration and disaster management of the Department, repairs and alterations, and other miscellaneous supplies and expenses not otherwise provided for and necessary for the practical and efficient work of the Department, including employment pursuant to the second sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225), of which not to exceed $10,000 is for employment under 5 U.S.C. 3109: <proviso><i>Provided,</i> That this appropriation shall be reimbursed from applicable appropriations in this Act for travel expenses incident to the holding of hearings as required by 5 U.S.C. 551–558.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Office of the Assistant Secretary for Congressional Relations</heading> <subheading>(including transfers of funds)</subheading> <content>For necessary salaries and expenses of the Office of the Assistant Secretary for Congressional Relations to carry out the programs funded in this Act, including programs involving intergovernmental affairs and liaison within the executive branch, $3,668,000: <proviso><i>Provided,</i> That no other funds appropriated to the Department by this Act shall be available to the Department for support of activities of congressional relations:</proviso> <proviso><i>Provided further,</i> That not less than $2,241,000 shall be transferred to agencies funded in this Act to maintain personnel at the agency level.</proviso><page identifier="/us/stat/111/2082">111 STAT. 2082</page></content> </appropriations> <appropriations level="intermediate"> <heading>Office of Communications</heading> <content>For necessary expenses to carry on services relating to the coordination of programs involving public affairs, for the dissemination of agricultural information, and the coordination of information, work, and programs authorized by Congress in the Department, $8,138,000, including employment pursuant to the second sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225), of which not to exceed $10,000 shall be available for employment under 5 U.S.C. 3109, and not to exceed $2,000,000 may be used for farmers’ bulletins.</content> </appropriations> <appropriations level="intermediate"> <heading>Office of the Inspector General</heading> <subheading>(including transfers of funds)</subheading> <content>For necessary expenses of the Office of the Inspector General, including employment pursuant to the second sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225), and the Inspector General Act of 1978, $63,128,000, including such sums as may be necessary for contracting and other arrangements with public agencies and private persons pursuant to section 6(a)(9) of the Inspector General Act of 1978, including a sum not to exceed $50,000 for employment under 5 U.S.C. 3109; and including a sum not to exceed $95,000 for certain confidential operational expenses including the payment of informants, to be expended under the direction of the Inspector General pursuant to Public Law 95–452 and section 1337 of Public Law 97–98: <proviso><i>Provided,</i> That funds transferred to the Office of the Inspector General through forfeiture proceedings or from the Department of Justice Assets Forfeiture Fund or the Department of the Treasury Forfeiture Fund, as a participating agency, as an equitable share from the forfeiture of property in investigations in which the Office of the Inspector General participates, or through the granting of a Petition for Remission or Mitigation, shall be deposited to the credit of this account for law enforcement activities authorized under the Inspector General Act of 1978, to remain available until expended.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Office of the General Counsel</heading> <content>For necessary expenses of the Office of the General Counsel, $28,524,000.</content> </appropriations> <appropriations level="intermediate"> <heading>Office of the Under Secretary for Research, Education and Economics</heading> <content>For necessary salaries and expenses of the Office of the Under Secretary for Research, Education and Economics to administer the laws enacted by the Congress for the Economic Research Service, the National Agricultural Statistics Service, the Agricultural Research Service, and the Cooperative State Research, Education, and Extension Service, $540,000.</content> </appropriations> <appropriations level="intermediate"> <heading>Economic Research Service</heading> <content>For necessary expenses of the Economic Research Service in conducting economic research and analysis, as authorized by the Agricultural Marketing Act of 1946 (7 U.S.C. 1621–1627) and other <page identifier="/us/stat/111/2083">111 STAT. 2083</page>laws, $71,604,000: <proviso><i>Provided,</i> That this appropriation shall be available for employment pursuant to the second sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225).</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>National Agricultural Statistics Service</heading> <content>For necessary expenses of the National Agricultural Statistics Service in conducting statistical reporting and service work, including crop and livestock estimates, statistical coordination and improvements, marketing surveys, and the Census of Agriculture, as authorized by the Agricultural Marketing Act of 1946 (7 U.S.C. 1621–1627) and other laws, $118,048,000, of which up to $36,327,000 shall be available until expended for the Census of Agriculture: <proviso><i>Provided,</i> That this appropriation shall be available for employment pursuant to the second sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225), and not to exceed $40,000 snail be available for employment under 5 U.S.C. 3109:</proviso> <proviso><i>Provided further,</i> That, notwithstanding any other provision of law,<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t13/s142">13 USC 142 note</ref>.</p></sidenote> the Secretary of Agriculture shall conduct the 1997 Census of Agriculture, to the extent practicable, pursuant to the provisions of title 13, United States Code.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Agricultural Research Service</heading> <content><p class="indent0 fontsize10">For necessary expenses to enable the Agricultural Research Service to perform agricultural research and demonstration relating to production, utilization, marketing, and distribution (not otherwise provided for); home economics or nutrition and consumer use including the acquisition, preservation, and dissemination of agricultural information; and for acquisition of lands by donation, exchange, or purchase at a nominal cost not to exceed $100, $744,605,000: <proviso><i>Provided,</i> That appropriations hereunder shall be<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s2254">7 USC 2254</ref>.</p></sidenote> available for temporary employment pursuant to the second sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225), and not to exceed $115,000 shall be available for employment under 5 U.S.C. 3109:</proviso> <proviso><i>Provided further,</i> That appropriations hereunder shall be available for the operation and maintenance of aircraft and the purchase of not to exceed one for replacement only:</proviso> <proviso><i>Provided further,</i> That appropriations hereunder shall be available pursuant to 7 U.S.C. 2250 for the construction, alteration, and repair of buildings and improvements, but unless otherwise provided, the cost of constructing any one building shall not exceed $250,000, except for headhouses or greenhouses which shall each be limited to $1,000,000, and except for ten buildings to be constructed or improved at a cost not to exceed $500,000 each, and the cost of altering any one building during the fiscal year shall not exceed 10 percent of the current replacement value of the building or $250,000, whichever is greater:</proviso> <proviso><i>Provided further,</i> That the limitations on alterations contained in this Act shall not apply to modernization or replacement of existing facilities at Beltsville, Maryland:</proviso> <proviso><i>Provided further,</i> That the foregoing limitations shall not apply to replacement of buildings needed to carry out the Act of April 24, 1948 (21 U.S.C. 113a):</proviso> <proviso><i>Provided further,</i> That funds may be received from any State, other political subdivision, organization, or individual for the purpose of establishing or operating any research facility or research project of the Agricultural Research Service, as authorized by law:</proviso> <proviso><i>Provided further,</i> That the item under the heading “Agricultural Research Service” <page identifier="/us/stat/111/2084">111 STAT. 2084</page>in title I of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1996 (Public Law 104–37; 109 Stat. 304), is amended by striking the penultimate proviso, relating to conveyance of the Pecan Genetics and Improvement Research Laboratory.</proviso></p> <p class="indent0 fontsize10">None of the funds in the foregoing paragraph shall be available to carry out research related to the production, processing or marketing of tobacco or tobacco products.</p> </content></appropriations> <appropriations level="intermediate"> <heading>buildings and facilities</heading> <content>For acquisition of land, construction, repair, improvement, extension, alteration, and purchase of fixed equipment or facilities as necessary to carry out the agricultural research programs of the Department of Agriculture, where not otherwise provided, $80,630,000, to remain available until expended (7 U.S.C. 2209b): <proviso><i>Provided,</i> That funds may be received from any State, other political subdivision, organization, or individual for the purpose of establishing any research facility of the Agricultural Research Service, as authorized by law.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Cooperative State Research, Education, and Extension Service</heading> <appropriations level="small"> <heading>research and education activities</heading> <content><p class="indent0 fontsize10">For payments to agricultural experiment stations, for cooperative forestry and other research, for facilities, and for other expenses, including $168,734,000 to carry into effect the provisions of the Hatch Act (7 U.S.C. 361a–i); $20,497,000 for grants for cooperative forestry research (16 U.S.C. 582a–a7); $27,735,000 for payments to the 1890 land-grant colleges, including Tuskegee University (7 U.S.C. 3222); $51,495,000 for special grants for agricultural research (7 U.S.C. 450i(c)); $15,048,000 for special grants for agricultural research on improved pest control (7 U.S.C. 450i(c)); $97,200,000 for competitive research grants (7 U.S.C. 450i(b)); $4,775,000 for the support of animal health and disease programs (7 U.S.C. 3195); $650,000 for supplemental and alternative crops and products (7 U.S.C. 3319d); $550,000 for grants for research pursuant to the Critical Agricultural Materials Act of 1984 (7 U.S.C. 178) and section 1472 of the Food and Agriculture Act of 1977 (7 U.S.C. 3318), to remain available until expended; $3,000,000 for higher education graduate fellowships grants (7 U.S.C. 3152(b)(6)), to remain available until expended (7 U.S.C. 2209b); $4,350,000 for higher education challenge grants (7 U.S.C. 3152(b)(1)); $1,000,000 for a higher education minority scholars program (7 U.S.C. 3152(b)(5)), to remain available until expended (7 U.S.C. 2209b); $2,500,000 for an education grants program for Hispanic-serving Institutions (7 U.S.C. 3241); $4,000,000 for aquaculture grants (7 U.S.C. 3322); $8,000,000 for sustainable agriculture research and education (7 U.S.C. 5811); $9,200,000 for a program of capacity building grants (7 U.S.C. 3152(b)(4)) to colleges eligible to receive funds under the Act of August 30, 1890 (7 U.S.C. 321–326 and 328), including Tuskegee University, to remain available until expended (7 U.S.C. 2209b); $1,450,000 for payments to the 1994 Institutions pursuant to section 534(a)(1) of Public Law 103–382; and $11,226,000 for necessary expenses of Research <page identifier="/us/stat/111/2085">111 STAT. 2085</page>and Education Activities, of which not to exceed $100,000 shall be for employment under 5 U.S.C. 3109; in all, $431,410,000.</p> <p class="indent0 fontsize10">None of the funds in the foregoing paragraph shall be available to carry out research related to the production, processing or marketing of tobacco or tobacco products.</p> </content></appropriations> </appropriations> <appropriations level="intermediate"> <heading>Native American Institutions Endowment Fund</heading> <content>For establishment of a Native American institutions endowment fund, as authorized by Public Law 103–382 (7 U.S.C. 301 note), $4,600,000.</content> </appropriations> <appropriations level="intermediate"> <heading>Extension Activities</heading> <content>Payments to States, the District of Columbia, Puerto Rico, Guam, the Virgin Islands, Micronesia, Northern Marianas, and American Samoa: For payments for cooperative extension work under the Smith-Lever Act, to be distributed under sections 3(b) and 3(c) of said Act, and under section 208(c) of Public Law 93471, for retirement and employees’ compensation costs for extension agents and for costs of penalty mail for cooperative extension agents and State extension directors, $268,493,000; payments for extension work at the 1994 Institutions under the Smith-Lever Act (7 U.S.C. 343(b)(3)), $2,000,000; payments for the nutrition and family education program for low-income areas under section 3(d) of the Act, $58,695,000; payments for the pest management program under section 3(d) of the Act, $10,783,000; payments for the farm safety program under section 3(d) of the Act, $2,855,000; payments for the pesticide impact assessment program under section 3(d) of the Act, $3,214,000; payments to upgrade 1890 land-grant college research, extension, and teaching facilities as authorized by section 1447 of Public Law 95–113 (7 U.S.C. 3222b), $7,549,000, to remain available until expended; payments for the rural development centers under section 3(d) of the Act, $908,000; payments for a groundwater quality program under section 3(d) of the Act, $9,061,000; payments for the agricultural telecommunications program, as authorized by Public Law 101–624 (7 U.S.C. 5926), $900,000; payments for youth-at-risk programs under section 3(d) of the Act, $9,554,000; payments for a food safety program under section 3(d) of the Act, $2,365,000; payments for carrying out the provisions of the Renewable Resources Extension Act of 1978, $3,192,000; payments for Indian reservation agents under section 3(d) of the Act, $1,672,000; payments for sustainable agriculture programs under section 3(d) of the Act, $3,309,000; payments for rural health and safety education as authorized by section 2390 of Public Law 101–624 (7 U.S.C. 2661 note, 2662), $2,628,000; payments for cooperative extension work by the colleges receiving the benefits of the second Morrill Act (7 U.S.C. 321–326 and 328) and Tuskegee University, $25,090,000; and for Federal administration and coordination including administration of the Smith-Lever Act, and the Act of September 29, 1977 (7 U.S.C. 341–349), and section 1361(c) of the Act of October 3, 1980 (7 U.S.C. 301 note), and to coordinate and provide program leadership for the extension work of the Department and the several States and insular possessions, $11,108,000; in all, $423,376,000: <proviso><i>Provided,</i> That funds hereby appropriated pursuant to section 3(c) of the Act of June 26, 1953, and section 506 of the Act of June 23, 1972, shall not be paid to any State, the District of Columbia, Puerto Rico, Guam, <page identifier="/us/stat/111/2086">111 STAT. 2086</page>or the Virgin Islands, Micronesia, Northern Marianas, and American Samoa prior to availability of an equal sum from non-Federal sources for expenditure during the current fiscal year.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Office of the Assistant Secretary for Marketing and Regulatory Programs</heading> <content>For necessary salaries and expenses of the Office of the Assistant Secretary for Marketing and Regulatory Programs to administer programs under the laws enacted by the Congress for the Animal and Plant Health Inspection Service, the Agricultural Marketing Service, and the Grain Inspection, Packers and Stockyards Administration, $618,000.</content> </appropriations> <appropriations level="intermediate"> <heading>Animal and Plant Health Inspection Service</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(including transfers of funds)</subheading> <content><p class="indent0 fontsize10">For expenses, not otherwise provided for, including those pursuant to the Act of February 28, 1947 (21 U.S.C. 114b–c), necessary to prevent, control, and eradicate pests and plant and animal diseases; to carry out inspection, quarantine, and regulatory activities; to discharge the authorities of the Secretary of Agriculture under the Act of March 2, 1931 (46 Stat. 1468; 7 U.S.C. 426–426b); and to protect the environment, as authorized by law, $426,282,000, of which $4,500,000 shall be available for the control of outbreaks of insects, plant diseases, animal diseases and for control of pest animals and birds to the extent necessary to meet emergency conditions: <proviso><i>Provided,</i> That no funds shall be used to formulate or administer a brucellosis eradication program for the current fiscal year that does not require minimum matching by the States of at least 40 percent:</proviso> <proviso><i>Provided further,</i> That this appropriation shall be available for field employment pursuant to the second sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225), and not to exceed $40,000 shall be available for employment under 5 U.S.C. 3109:</proviso> <proviso><i>Provided further,</i> That this appropriation shall be available for the operation and maintenance of aircraft and the purchase of not to exceed four, of which two shall be <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s129">21 USC 129</ref>.</p></sidenote>for replacement only:</proviso> <proviso><i>Provided further,</i> That, in addition, in emergencies which threaten any segment of the agricultural production industry of this country, the Secretary may transfer from other appropriations or funds available to the agencies or corporations of the Department such sums as he may deem necessary, to be available only in such emergencies for the arrest and eradication of contagious or infectious disease or pests of animals, poultry, or plants, and for expenses in accordance with the Act of February 28, 1947, and section 102 of the Act of September 21, 1944, and any unexpended balances of funds transferred for such emergency purposes in the next preceding fiscal year shall be merged with such transferred amounts:</proviso> <proviso><i>Provided further,</i> That appropriations hereunder shall be available pursuant to law (7 U.S.C. 2250) for the repair and alteration of leased buildings and improvements, but unless otherwise provided the cost of altering any one building during the fiscal year shall not exceed 10 percent of the current replacement value of the building.</proviso><page identifier="/us/stat/111/2087">111 STAT. 2087</page></p> <p class="indent0 fontsize10">In fiscal year 1998 the agency is authorized to collect fees to cover the total costs of providing technical assistance, goods, or services requested by States, other political subdivisions, domestic and international organizations, foreign governments, or individuals, provided that such fees are structured such that any entity’s liability for such fees is reasonably based on the technical assistance, goods, or services provided to the entity by the agency, and such fees shall be credited to this account, to remain available until expended, without further appropriation, for providing such assistance, goods, or services.</p> <p class="indent0 fontsize10">Of the total amount available under this heading in fiscal year 1998, $88,000,000 shall be derived from user fees deposited in the Agricultural Quarantine Inspection User Fee Account.</p> </content></appropriations> <appropriations level="small"> <heading>buildings and facilities</heading> <content>For plans, construction, repair, preventive maintenance, environmental support, improvement, extension, alteration, and purchase of fixed equipment or facilities, as authorized by 7 U.S.C. 2250, and acquisition of land as authorized by 7 U.S.C. 428a, $4,200,000, to remain available until expended.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Agricultural Marketing Service</heading> <appropriations level="small"> <heading>marketing services</heading> <content><p class="indent0 fontsize10">For necessary expenses to carry on services related to consumer protection, agricultural marketing and distribution, transportation, and regulatory programs, as authorized by law, and for administration and coordination of payments to States; including field employment pursuant to the second sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225), and not to exceed $90,000 for employment under 5 U.S.C. 3109, $46,592,000, including funds for the wholesale market development program for the design and development of wholesale and farmer market facilities for the major metropolitan areas of the country: <proviso><i>Provided,</i> That this appropriation shall be available pursuant to law (7 U.S.C. 2250) for the alteration and repair of buildings and improvements, but the cost of altering any one building during the fiscal year shall not exceed 10 percent of the current replacement value of the building.</proviso></p> <p class="indent0 fontsize10">Fees may be collected for the cost of standardization activities, as established by regulation pursuant to law (31 U.S.C. 9701).</p> </content></appropriations> <appropriations level="small"> <heading>limitation on administrative expenses</heading> <content>Not to exceed $59,521,000 (from fees collected) shall be obligated during the current fiscal year for administrative expenses: <proviso><i>Provided,</i> That if crop size is understated and/or other uncontrollable events occur, the agency may exceed this limitation by up to 10 percent with notification to the Appropriations Committees.</proviso></content> </appropriations> <appropriations level="small"> <heading>funds for strengthening markets, income, and supply (section 32)</heading> <subheading>(INCLUDING TRANSFERS OF FUNDS)</subheading> <content>Funds available under section 32 of the Act of August 24, 1935 (7 U.S.C. 612c) shall be used only for commodity program expenses as authorized therein, and other related operating <page identifier="/us/stat/111/2088">111 STAT. 2088</page>expenses, except for: (1) transfers to the Department of Commerce as authorized by the Fish and Wildlife Act of August 8, 1956; (2) transfers otherwise provided in this Act; and (3) not more than $10,690,000 for formulation and administration of marketing agreements and orders pursuant to the Agricultural Marketing Agreement Act of 1937, and the Agricultural Act of 1961.</content> </appropriations> <appropriations level="small"> <heading>payments to states and possessions</heading> <content>For payments to departments of agriculture, bureaus and departments of markets, and similar agencies for marketing activities under section 204(b) of the Agricultural Marketing Act of 1946 (7 U.S.C. 1623(b)), $1,200,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Grain Inspection, Packers and Stockyards Administration</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses to carry out the provisions of the United States Grain Standards Act, for the administration of the Packers and Stockyards Act, for certifying procedures used to protect purchasers of farm products, and the standardization activities related to grain under the Agricultural Marketing Act of 1946, including field employment pursuant to the second sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225), and not to exceed $25,000 for employment under 5 U.S.C. 3109, $23,928,000: <proviso><i>Provided,</i> That this appropriation shall be available pursuant to law (7 U.S.C. 2250) for the alteration and repair of buildings and improvements, but the cost of altering any one building during the fiscal year shall not exceed 10 percent of the current replacement value of the building.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Inspection and Weighing Services</heading> <appropriations level="small"> <heading>limitation on inspection and weighing service expenses</heading> <content>Not to exceed $43,092,000 (from fees collected) shall be obligated during the current fiscal year for inspection and weighing services: <proviso><i>Provided,</i> That if grain export activities require additional supervision and oversight, or other uncontrollable factors occur, this limitation may be exceeded by up to 10 percent with notification to the Appropriations Committees.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Office of the Under Secretary for Food Safety</heading> <content>For necessary salaries and expenses of the Office of the Under Secretary for Food Safety to administer the laws enacted by the Congress for the Food Safety and Inspection Service, $446,000.</content> </appropriations> <appropriations level="intermediate"> <heading>Food Safety and Inspection Service</heading> <content>For necessary expenses to carry on services authorized by the Federal Meat Inspection Act, the Poultry Products Inspection Act, and the Egg Products Inspection Act, $589,263,000, of which $5,000,000 shall be available for obligation only after promulgation of a final rule to implement the provisions of subsection (e) of section 5 of the Egg Products Inspection Act (21 U.S.C. 1034(e)), and in addition, $1,000,000 may be credited to this account from fees collected for the cost of laboratory accreditation as authorized <page identifier="/us/stat/111/2089">111 STAT. 2089</page>by section 1017 of Public Law 102–237: <proviso><i>Provided,</i> That this appropriation shall not be available for shell egg surveillance under section 5(d) of the Egg Products Inspection Act (21 U.S.C. 1034(d)):</proviso> <proviso><i>Provided further,</i> That this appropriation shall be available for field employment pursuant to the second sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225), and not to exceed $75,000 shall be available for employment under 5 U.S.C. 3109:</proviso> <proviso><i>Provided further,</i> That this appropriation shall be available pursuant to law (7 U.S.C. 2250) for the alteration and repair of buildings and improvements, but the cost of altering any one building during the fiscal year shall not exceed 10 percent of the current replacement value of the building.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Office of the Under Secretary for Farm and Foreign Agricultural Services</heading> <content>For necessary salaries and expenses of the Office of the Under Secretary for Farm and Foreign Agricultural Services to administer the laws enacted by Congress for the Farm Service Agency, the Foreign Agricultural Service, the Risk Management Agency, and the Commodity Credit Corporation, $572,000.</content> </appropriations> <appropriations level="intermediate"> <heading>Farm Service Agency</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(including transfers of funds)</subheading> <content>For necessary expenses for carrying out the administration and implementation of programs administered by the Farm Service Agency, $700,659,000: <proviso><i>Provided,</i> That the Secretary is authorized to use the services, facilities, and authorities (but not the funds) of the Commodity Credit Corporation to make program payments for all programs administered by the Agency:</proviso> <proviso><i>Provided further,</i> That other funds made available to the Agency for authorized activities may be advanced to and merged with this account:</proviso> <proviso><i>Provided further,</i> That these funds shall be available for employment pursuant to the second sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225), and not to exceed $1,000,000 shall be available for employment under 5 U.S.C. 3109.</proviso></content> </appropriations> <appropriations level="small"> <heading>state mediation grants</heading> <content>For grants pursuant to section 502(b) of the Agricultural Credit Act of 1987 (7 U.S.C. 5101–5106), $2,000,000.</content> </appropriations> <appropriations level="small"> <heading>dairy indemnity program</heading> <subheading>(including transfers of funds)</subheading> <content>For necessary expenses involved in making indemnity payments to dairy farmers for milk or cows producing such milk and manufacturers of dairy products who have been directed to remove their milk or dairy products from commercial markets because it contained residues of chemicals registered and approved for use by the Federal Government, and in making indemnity payments for milk, or cows producing such milk, at a fair market value to any dairy farmer who is directed to remove his milk from commercial markets because of: (1) the presence of products of nuclear <page identifier="/us/stat/111/2090">111 STAT. 2090</page>radiation or fallout if such contamination is not due to the fault of the farmer; or (2) residues of chemicals or toxic substances not included under the first sentence of the Act of August 13, 1968 (7 U.S.C. 450j), if such chemicals or toxic substances were not used in a manner contrary to applicable regulations or labeling instructions provided at the time of use and the contamination is not due to the fault of the farmer, $550,000, to remain available until expended (7 U.S.C. 2209b): <proviso><i>Provided,</i> That none of the funds contained in this Act shall be used to make indemnity payments to any farmer whose milk was removed from commercial markets as a result of his willful failure to follow procedures prescribed by the Federal Government:</proviso> <proviso><i>Provided further,</i> That this amount shall be transferred to the Commodity Credit Corporation:</proviso> <proviso><i>Provided further,</i> That the Secretary is authorized to utilize the services, facilities, and authorities of the Commodity Credit Corporation for the purpose of making dairy indemnity disbursements.</proviso></content> </appropriations> <appropriations level="small"> <heading>agricultural credit insurance fund program account</heading> <subheading>(including transfers of funds)</subheading> <content><p class="indent0 fontsize10">For gross obligations for the principal amount of direct and guaranteed loans as authorized by 7 U.S.C. 1928–1929, to be available from funds in the Agricultural Credit Insurance Fund, as follows: farm ownership loans, $460,000,000 of which $400,000,000 shall be for guaranteed loans; operating loans, $2,395,000,000 of which $1,700,000,000 shall be for unsubsidized guaranteed loans and $200,000,000 shall be for subsidized guaranteed loans; Indian tribe land acquisition loans as authorized by 25 U.S.C. 488, $1,000,000; for emergency insured loans, $25,000,000 to meet the needs resulting from natural disasters; for boll weevil eradication program loans as authorized by 7 U.S.C. 1989, $34,653,000; and for credit sales of acquired property, $25,000,000.</p> <p class="indent0 fontsize10">For the cost of direct and guaranteed loans, including the cost of modifying loans as defined in section 502 of the Congressional Budget Act of 1974, as follows: farm ownership loans, $21,380,000 of which $15,440,000 shall be for guaranteed loans; operating loans, $71,394,000 of which $19,890,000 shall be for unsubsidized guaranteed loans and $19,280,000 shall be for subsidized guaranteed loans; Indian tribe land acquisition loans as authorized by 25 U.S.C. 488, $132,000; for emergency insured loans, $6,008,000 to meet the needs resulting from natural disasters; for boll weevil eradication program loans as authorized by 7 U.S.C. 1989, $250,000; and for credit sales of acquired property, $3,255,000.</p> <p class="indent0 fontsize10">In addition, for administrative expenses necessary to carry out the direct and guaranteed loan programs, $219,861,000 of which $209,861,000 shall be transferred to and merged with the “Farm Service Agency, Salaries and Expenses” account.</p> </content></appropriations> </appropriations> <appropriations level="intermediate"> <heading>Risk Management Agency</heading> <content>For administrative and operating expenses, as authorized by the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 6933), $64,000,000: <proviso><i>Provided,</i> That not to exceed $700 shall be available for official reception and representation expenses, as authorized by 7 U.S.C. 1506(i). In addition, notwithstanding the provisions of section 516(a)(1)(B) of the Federal Crop Insurance Act (7 U.S.C. 1516(a)(1)(B)), for discretionary expenses, <page identifier="/us/stat/111/2091">111 STAT. 2091</page>$188,571,000 for the payment of administrative and operating expenses of approved insurance providers.</proviso></content> </appropriations> <appropriations level="major"> <heading>CORPORATIONS</heading> <chapeau>The following corporations and agencies are hereby authorized to make expenditures, within the limits of funds and borrowing authority available to each such corporation or agency and in accord with law, and to make contracts and commitments without regard to fiscal year limitations as provided by section 104 of the Government Corporation Control Act as may be necessary in carrying out the programs set forth in the budget for the current fiscal year for such corporation or agency, except as hereinafter provided.</chapeau> <appropriations level="intermediate"> <heading>federal crop insurance corporation fund</heading> <content>For payments as authorized by section 516 of the Federal Crop Insurance Act, such sums as may be necessary, to remain available until expended (7 U.S.C. 2209b).</content> </appropriations> <appropriations level="intermediate"> <heading>Commodity Credit Corporation Fund</heading> <appropriations level="small"> <heading>reimbursement for net realized losses</heading> <content>For fiscal year 1998, such sums as may be necessary to reimburse the Commodity Credit Corporation for net realized losses sustained, but not previously reimbursed (estimated to be $783,507,000 in the President’s fiscal year 1998 Budget Request (H. Doc. 105–3)), but not to exceed $783,507,000, pursuant to section 2 of the Act of August 17, 1961 (15 U.S.C. 713a–11).</content> </appropriations> <appropriations level="small"> <heading>operations and maintenance for hazardous waste management</heading> <content>For fiscal year 1998, the Commodity Credit Corporation shall not expend more than $5,000,000 for expenses to comply with the requirement of section 107(g) of the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. 9607(g), and section 6001 of the Resource Conservation and Recovery Act, 42 U.S.C. 6961: <proviso><i>Provided,</i> That expenses shall be for operations and maintenance costs only and that other hazardous waste management costs shall be paid for by the USDA Hazardous Waste Management appropriation in this Act.</proviso></content> </appropriations> </appropriations> </appropriations> <num value="II">TITLE II</num> <heading>CONSERVATION PROGRAMS</heading> <appropriations level="intermediate"> <heading>Office of the Under Secretary for Natural Resources and Environment</heading> <content>For necessary salaries and expenses of the Office of the Under Secretary for Natural Resources and Environment to administer the laws enacted by the Congress for the Forest Service and the Natural Resources Conservation Service, $693,000.<page identifier="/us/stat/111/2092">111 STAT. 2092</page></content> </appropriations> <appropriations level="intermediate"> <heading>Natural Resources Conservation Service</heading> <appropriations level="small"> <heading>conservation operations</heading> <content>For necessary expenses for carrying out the provisions of the Act of April 27, 1935 (16 U.S.C. 590a–f) including preparation of conservation plans and establishment of measures to conserve soil and water (including farm irrigation and land drainage and such special measures for soil and water management as may be necessary to prevent floods and the siltation of reservoirs and to control agricultural related pollutants); operation of conservation plant materials centers; classification and mapping of soil; dissemination of information; acquisition of lands, water, and interests therein for use in the plant materials program by donation, exchange, or purchase at a nominal cost not to exceed $100 pursuant to the Act of August 3, 1956 (7 U.S.C. 428a); purchase and erection or alteration or improvement of permanent and temporary buildings; and operation and maintenance of aircraft, $633,231,000, to remain available until expended (7 U.S.C. 2209b), of which not less than $5,835,000 is for snow survey and water forecasting and not less than $8,825,000 is for operation and establishment of the plant materials centers: <proviso><i>Provided,</i> That appropriations hereunder shall be available pursuant to 7 U.S.C. 2250 for construction and improvement of buildings and public improvements at plant materials centers, except that the cost of alterations and improvements to other buildings and other public improvements shall not exceed $250,000:</proviso> <proviso><i>Provided further,</i> That when buildings or other structures are erected on non-Federal land, that the right to use such land is obtained as provided in 7 U.S.C. 2250a:</proviso> <proviso><i>Provided further,</i> That this appropriation shall be available for technical assistance and related expenses to carry out programs authorized by section 202(c) of title II of the Colorado River Basin Salinity Control Act of 1974 (43 U.S.C. 1592(c)):</proviso> <proviso><i>Provided further,</i> That no part of this appropriation may be expended for soil and water conservation operations under the Act of April 27, 1935 (16 U.S.C. 590a–f) in demonstration projects:</proviso> <proviso><i>Provided further,</i> That this appropriation shall be available for employment pursuant to the second sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225) and not to exceed $25,000 shall be available for employment under 5 U.S.C. 3109:</proviso> <proviso><i>Provided further,</i> That qualified local engineers may be temporarily employed at per diem rates to perform the technical planning work of the Service (16 U.S.C. 590e–2):</proviso> <proviso><i>Provided further,</i> That the Secretary is authorized to transfer ownership of land, buildings and related improvements of the plant materials facilities located at Bow, Washington, to the Skagit Conservation District.</proviso></content> </appropriations> <appropriations level="small"> <heading>watershed surveys and planning</heading> <content>For necessary expenses to conduct research, investigation, and surveys of watersheds of rivers and other waterways, and for small watershed investigations and planning, in accordance with the Watershed Protection and Flood Prevention Act approved August 4, 1954 (16 U.S.C. 1001–1009), $11,190,000: <proviso><i>Provided,</i> That this appropriation shall be available for employment pursuant to the second sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225), and not to exceed $110,000 shall be available for employment under 5 U.S.C. 3109.</proviso><page identifier="/us/stat/111/2093">111 STAT. 2093</page></content> </appropriations> <appropriations level="small"> <heading>watershed and flood prevention operations</heading> <content>For necessary expenses to carry out preventive measures, including but not limited to research, engineering operations, methods of cultivation, the growing of vegetation, rehabilitation of existing works and changes in use of land, in accordance with the Watershed Protection and Flood Prevention Act approved August 4, 1954 (16 U.S.C. 1001–1005, 1007–1009), the provisions of the Act of April 27, 1935 (16 U.S.C. 590a–f), and in accordance with the provisions of laws relating to the activities of the Department, $101,036,000, to remain available until expended (7 U.S.C. 2209b) (of which up to $15,000,000 may be available for the watersheds authorized under the Flood Control Act approved June 22, 1936 (33 U.S.C. 701, 16 U.S.C. 1006a)): <proviso><i>Provided,</i> That not to exceed $50,000,000 of this appropriation shall be available for technical assistance:</proviso> <proviso><i>Provided further,</i> That this appropriation shall be available for employment pursuant to the second sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225), and not to exceed $200,000 shall be available for employment under 5 U.S.C. 3109:</proviso> <proviso><i>Provided further,</i> That not to exceed $1,000,000 of this appropriation is available to carry out the purposes of the Endangered Species Act of 1973 (Public Law 93–205), including cooperative efforts as contemplated by that Act to relocate endangered or threatened species to other suitable habitats as may be necessary to expedite project construction.</proviso></content> </appropriations> <appropriations level="small"> <heading>resource conservation and development</heading> <content>For necessary expenses in planning and carrying out projects for resource conservation and development and for sound land use pursuant to the provisions of section 32(e) of title III of the Bankhead-Jones Farm Tenant Act (7 U.S.C. 1010–1011; 76 Stat. 607), the Act of April 27, 1935 (16 U.S.C. 590a–f), and the Agriculture and Food Act of 1981 (16 U.S.C. 3451–3461), $34,377,000, to remain available until expended (7 U.S.C. 2209b): <proviso><i>Provided,</i> That this appropriation shall be available for employment pursuant to the second sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225), and not to exceed $50,000 shall be available for employment under 5 U.S.C. 3109.</proviso></content> </appropriations> <appropriations level="small"> <heading>forestry incentives program</heading> <content>For necessary expenses, not otherwise provided for, to carry out the program of forestry incentives, as authorized in the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2101), including technical assistance and related expenses, $6,325,000, to remain available until expended, as authorized by that Act.</content> </appropriations> <appropriations level="intermediate"> <heading>outreach for socially disadvantaged farmers</heading> <content>For grants and contracts pursuant to section 2501 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279), $3,000,000, to remain available until expended.<page identifier="/us/stat/111/2094">111 STAT. 2094</page></content> </appropriations> </appropriations> <num value="III">TITLE III</num> <heading>RURAL ECONOMIC AND COMMUNITY DEVELOPMENT PROGRAMS</heading> <appropriations level="intermediate"> <heading>Office of the Under Secretary for Rural Development</heading> <chapeau>For necessary salaries and expenses of the Office of the Under Secretary for Rural Development to administer programs under the laws enacted by the Congress for the Rural Housing Service, the Rural Business-Cooperative Service, and the Rural Utilities Service of the Department of Agriculture, $588,000.</chapeau> <appropriations level="small"> <heading>rural community advancement program</heading> <subheading>(including transfers of funds)</subheading> <content>For the cost of direct loans, loan guarantees, and grants, as authorized by 7 U.S.C. 1926, 1926a, 1926c, and 1932, except for sections 381E–H, 381N, and 3810 of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009f), $652,197,000, to remain available until expended, of which $27,062,000 shall be for rural community programs described in section 381E(d)(1) of the Consolidated Farm and Rural Development Act; of which $577,242,000 shall be for the rural utilities programs described in section 381E(d)(2) of such Act; and of which $47,893,000 shall be for the rural business and cooperative development programs described in section 381E(d)(3) of such Act: <proviso><i>Provided,</i> That section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s2009d">7 USC 2009d</ref>.</p></sidenote>381E(d)(3)(B) of such Act is amended by inserting after the phrase “business and industry”, the words “direct and”:</proviso> <proviso><i>Provided further,</i> That of the amount appropriated for the rural business and cooperative development programs, not to exceed $500,000 shall be made available for a grant to a qualified national organization to provide technical assistance for rural transportation in order to promote economic development:</proviso> <proviso><i>Provided further,</i> That of the amount appropriated for rural utilities programs, not to exceed $20,000,000 shall be for water and waste disposal systems to benefit the Colonias along the United States/Mexico border, including grants pursuant to section 306C of such Act; not to exceed $15,000,000 shall be for water and waste disposal systems for rural and native villages in Alaska pursuant to section 306D of such Act; not to exceed $15,000,000 shall be for technical assistance grants for rural waste systems pursuant to section 306(a)(14) of such Act; and not to exceed $5,200,000 shall be for contracting with qualified national organizations for a circuit rider program to provide technical assistance for rural water systems:</proviso> <proviso><i>Provided further,</i> That of the total amounts appropriated, not to exceed $20,048,000 shall be available through June 30, 1998, for empowerment zones and enterprise communities, as authorized by Public Law 103–66, of which $1,200,000 shall be for rural community programs described in section 381E(d)(1) of such Act; of which $18,700,000 shall be for the rural utilities programs described in section 381E(d)(2) of such Act; of which $148,000 shall be for the rural business and cooperative development programs described in section 381E(d)(3) of such Act:</proviso> <proviso><i>Provided further,</i> That any obligated and unobligated balances available for prior years for the “Rural Water and Waste Disposal Grants”, “Rural Water and Waste Disposal Loans Program Account”, “Emergency Community Water Assistance Grants”, “Solid <page identifier="/us/stat/111/2095">111 STAT. 2095</page>Waste Management Grants”, the community facility grant program in the “Rural Housing Assistance Program Account”, “Community Facility Loans Program Account”, “Rural Business Enterprise Grants”, “Rural Business and Industry Loans Program Account”, and “Local Technical Assistance and Planning Grants” shall be transferred to and merged with this account.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Rural Housing Service</heading> <appropriations level="small"> <heading>rural housing insurance fund program account</heading> <subheading>(including transfers of funds)</subheading> <content><p class="indent0 fontsize10">For gross obligations for the principal amount of direct and guaranteed loans as authorized by title V of the Housing Act of 1949, to be available from funds in the rural housing insurance fund, as follows: $4,000,000,000 for loans to section 502 borrowers, as determined by the Secretary, of which $3,000,000,000 shall be for unsubsidized guaranteed loans; $30,000,000 for section 504 housing repair loans; $19,700,000 for section 538 guaranteed multi-family housing loans; $15,000,000 for section 514 farm labor housing; $128,640,000 for section 515 rental housing; $600,000 for section 524 site loans; $25,000,000 for credit sales of acquired property; and $587,000 for section 523 self-help housing land development loans.</p> <p class="indent0 fontsize10">For the cost of direct and guaranteed loans, including the cost of modifying loans, as defined in section 502 of the Congressional Budget Act of 1974, as follows: section 502 loans, $135,000,000, of which $6,900,000 shall be for unsubsidized guaranteed loans; section 504 housing repair loans, $10,300,000; section 538 multi-family housing guaranteed loans, $1,200,000; section 514 farm labor housing, $7,388,000; section 515 rental housing, $68,745,000; credit sales of acquired property, $3,492,000; and section 523 self-help housing land development loans, $17,000.</p> <p class="indent0 fontsize10">In addition, for administrative expenses necessary to carry out the direct and guaranteed loan programs, $354,785,000, which shall be transferred to and merged with the appropriation for “Rural Housing Service—Salaries and Expenses”.</p> </content></appropriations> <appropriations level="small"> <heading>rental assistance program</heading> <content>For rental assistance agreements entered into or renewed pursuant to the authority under section 521(a)(2) or agreements entered into in lieu of debt forgiveness or payments for eligible households as authorized by section 502(c)(5)(D) of the Housing Act of 1949, $541,397,000; and in addition such sums as may be necessary, as authorized by section 521(c) of the Act, to liquidate debt incurred prior to fiscal year 1992 to carry out the rental assistance program under section 521(a)(2) of the Act: <proviso><i>Provided,</i> That of this amount not more than $5,900,000 shall be available for debt forgiveness or payments for eligible households as authorized by section 502(c)(5)(D) of the Act, and not to exceed $10,000 per project for advances to nonprofit organizations or public agencies to cover direct costs (other than purchase price) incurred in purchasing projects pursuant to section 502(c)(5)(C) of the Act:</proviso> <proviso><i>Provided further,</i> That agreements entered into or renewed during fiscal year 1998 shall be funded for a five-year period, although the <page identifier="/us/stat/111/2096">111 STAT. 2096</page>life of any such agreement may be extended to fully utilize amounts obligated.</proviso></content> </appropriations> <appropriations level="small"> <heading>mutual and self-help housing grants</heading> <content>For grants and contracts pursuant to section 523(b)(1)(A) of the Housing Act of 1949 (42 U.S.C. 1490c), $26,000,000, to remain available until expended (7 U.S.C. 2209b).</content> </appropriations> <appropriations level="small"> <heading>rural community fire protection grants</heading> <content>For grants pursuant to section 7 of the Cooperative Forestry Assistance Act of 1978 (Public Law 95–313), $2,000,000 to fund up to 50 percent of the cost of organizing, training, and equipping rural volunteer fire departments.</content> </appropriations> <appropriations level="small"> <heading>rural housing assistance grants</heading> <subheading>(including transfers of funds)</subheading> <content>For grants and contracts for housing for domestic farm labor, very low-income housing repair, supervisory and technical assistance, compensation for construction defects, and rural housing preservation made by the Rural Housing Service as authorized by 42 U.S.C. 1474, 1479(c), 1486, 1490c, 1490e, and 1490m, $45,720,000, to remain available until expended: <proviso><i>Provided,</i> That any obligated and unobligated balances available from prior years in “Rural Housing for Domestic Farm Labor”, “Supervisory and Technical Assistance Grants”, “Very Low-Income Housing Repair Grants”, “Compensation for Construction Defects”, and “Rural Housing Preservation Grants” shall be transferred to and merged with this account: <i>Provided further,</i> That of the total amount appropriated, $1,200,000 shall be for empowerment zones and enterprise communities, as authorized by Public Law 103–66:</proviso> <proviso><i>Provided further,</i> That if such funds are not obligated for empowerment zones and enterprise communities by June 30, 1998, they shall remain available for other authorized purposes under this head.</proviso></content> </appropriations> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Rural Housing Service, including administering the programs authorized by the Consolidated Farm and Rural Development Act, title V of the Housing Act of 1949, and cooperative agreements, $58,804,000: <proviso><i>Provided,</i> That this appropriation shall be available for employment pursuant to the second sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225), and not to exceed $520,000 may be used for employment under 5 U.S.C. 3109.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Rural Business-Cooperative Service</heading> <appropriations level="small"> <heading>rural development loan fund program account</heading> <subheading>(including transfers of funds)</subheading> <content><p class="indent0 fontsize10">For the cost of direct loans, $16,888,000, as authorized by the Rural Development Loan Fund (42 U.S.C. 9812(a)): <proviso><i>Provided,</i> That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of <page identifier="/us/stat/111/2097">111 STAT. 2097</page>1974:</proviso> <proviso><i>Provided further,</i> That these funds are available to subsidize gross obligations for the principal amount of direct loans of $35,000,000:</proviso> <proviso><i>Provided further,</i> That through June 30, 1998, of the total amount appropriated, $3,345,000 shall be available for the cost of direct loans for empowerment zones and enterprise communities, as authorized by title XIII of the Omnibus Budget Reconciliation Act of 1993, to subsidize gross obligations for the principal amount of direct loans, $7,246,000.</proviso></p> <p class="indent0 fontsize10">In addition, for administrative expenses to carry out the direct loan programs, $3,482,000 shall be transferred to and merged with the appropriation for “Rural Business-Cooperative Service-Salaries and Expenses”.</p> </content></appropriations> <appropriations level="small"> <heading>rural economic development loans program account</heading> <subheading>(including transfers of funds)</subheading> <content><p class="indent0 fontsize10">For the principal amount of direct loans, as authorized under section 313 of the Rural Electrification Act, for the purpose of promoting rural economic development and job creation projects, $25,000,000.</p> <p class="indent0 fontsize10">For the cost of direct loans, including the cost of modifying loans as defined in section 502 of the Congressional Budget Act of 1974, $5,978,000.</p> <p class="indent0 fontsize10">Of the funds derived from interest on the cushion of credit payments in fiscal year 1998, as authorized by section 313 of the Rural Electrification Act of 1936, $5,978,000 shall not be obligated and $5,978,000 are rescinded.</p> </content></appropriations> <appropriations level="small"> <heading>alternative agricultural research and commercialization revolving fund</heading> <content>For necessary expenses to carry out the Alternative Agricultural Research and Commercialization Act of 1990 (7 U.S.C. 5901–5908), $7,000,000 are appropriated to the Alternative Agricultural Research and Commercialization Corporation Revolving Fund.</content> </appropriations> <appropriations level="small"> <heading>rural cooperative development grants</heading> <content>For rural cooperative development grants authorized under section 310B(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932), $3,000,000, of which up to $1,300,000 may be available for cooperative agreements for the appropriate technology transfer for rural areas program.</content> </appropriations> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Rural Business-Cooperative Service, including administering the programs authorized by the Consolidated Farm and Rural Development Act; section 1323 of the Food Security Act of 1985; the Cooperative Marketing Act of 1926; for activities relating to the marketing aspects of cooperatives, including economic research findings, as authorized by the Agricultural Marketing Act of 1946; for activities with institutions concerning the development and operation of agricultural cooperatives; and for cooperative agreements; $25,680,000: <proviso><i>Provided,</i> That this appropriation shall be available for employment pursuant to the second sentence of section 706(a) of the Organic Act of 1944 <page identifier="/us/stat/111/2098">111 STAT. 2098</page>(7 U.S.C. 2225), and not to exceed $260,000 may be used for employment under 5 U.S.C. 3109.</proviso></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Rural Utilities Service</heading> <appropriations level="small"> <heading>rural electrification and telecommunications loans program account</heading> <subheading>(including transfers of funds)</subheading> <content><p class="indent0 fontsize10">Insured loans pursuant to the authority of section 305 of the Rural Electrification Act of 1936 (7 U.S.C. 935), shall be made as follows: 5 percent rural electrification loans, $125,000,000; 5 percent rural telecommunications loans, $75,000,000; cost of money rural telecommunications loans, $300,000,000; municipal rate rural electric loans, $500,000,000; and loans made pursuant to section 306 of that Act, rural electric, $300,000,000 and rural telecommunications, $120,000,000, to remain available until expended.</p> <p class="indent0 fontsize10">For the cost, as defined in section 502 of the Congressional Budget Act of 1974, including the cost of modifying loans, of direct and guaranteed loans authorized by the Rural Electrification Act of 1936 (7 U.S.C. 935 and 936), as follows: cost of direct loans, $12,265,000; cost of municipal rate loans, $21,100,000; cost of money rural telecommunications loans, $60,000; cost of loans guaranteed pursuant to section 306, $2,760,000: <proviso><i>Provided,</i> That notwithstanding section 305(d)(2) of the Rural Electrification Act of 1936, borrower interest rates may exceed 7 percent per year.</proviso></p> <p class="indent0 fontsize10">In addition, for administrative expenses necessary to carry out the direct and guaranteed loan programs, $29,982,000, which shall be transferred to and merged with the appropriation for “Rural Utilities Service—Salaries and Expenses”.</p> </content></appropriations> <appropriations level="intermediate"> <heading>rural telephone bank program account</heading> <subheading>(including transfers of funds)</subheading> <content><p class="indent0 fontsize10">The Rural Telephone Bank is hereby authorized to make such expenditures, within the limits of funds available to such corporation in accord with law, and to make such contracts and commitments without regard to fiscal year limitations as provided by section 104 of the Government Corporation Control Act, as may be necessary in carrying out its authorized programs for the current fiscal year. During fiscal year 1998 and within the resources and authority available, gross obligations for the principal amount of direct loans shall be $175,000,000.</p> <p class="indent0 fontsize10">For the cost, as defined in section 502 of the Congressional Budget Act of 1974, including the cost of modifying loans, of direct loans authorized by the Rural Electrification Act of 1936 (7 U.S.C. 935), $3,710,000.</p> <p class="indent0 fontsize10">In addition, for administrative expenses necessary to carry out the loan programs, $3,000,000, which shall be transferred to and merged with the appropriation for “Rural Utilities Service—Salaries and Expenses”.</p> </content></appropriations> <appropriations level="small"> <heading>distance learning and medical link program</heading> <content>For the cost of direct loans and grants, as authorized by 7 U.S.C. 950aaa et seq., $12,530,000, to remain available until <page identifier="/us/stat/111/2099">111 STAT. 2099</page>expended, to be available for loans and grants for telemedicine and distance learning services in rural areas: <proviso><i>Provided,</i> That the costs of direct loans shall be as defined in section 502 of the Congressional Budget Act of 1974.</proviso></content> </appropriations> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Rural Utilities Service, including administering the programs authorized by the Rural Electrification Act of 1936, and the Consolidated Farm and Rural Development Act, and for cooperative agreements, $33,000,000: <proviso><i>Provided,</i> That this appropriation shall be available for employment pursuant to the second sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225), and not to exceed $105,000 may be used for employment under 5 U.S.C. 3109.</proviso></content> </appropriations> </appropriations> <num value="IV">TITLE IV</num> <heading>DOMESTIC FOOD PROGRAMS</heading> <appropriations level="intermediate"> <heading>Office of the Under Secretary for Food, Nutrition and Consumer Services</heading> <chapeau>For necessary salaries and expenses of the Office of the Under Secretary for Food, Nutrition and Consumer Services to administer the laws enacted by the Congress for the Food and Consumer Service, $554,000.</chapeau> <appropriations level="small"> <heading>child nutrition programs</heading> <subheading>(including transfers of funds)</subheading> <content>For necessary expenses to carry out the National School Lunch Act (42 U.S.C. 1751 et seq.), except section 21, and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), except sections 17 and 21; $7,767,816,000, to remain available through September 30, 1999, of which $2,616,425,000 is hereby appropriated and $5,151,391,000 shall be derived by transfer from funds available under section 32 of the Act of August 24, 1935 (7 U.S.C. 612c): <proviso><i>Provided,</i> That none of the funds made available under this heading shall be used for studies and evaluations:</proviso><proviso> <i>Provided further,</i> That up to $4,124,000 shall be available for independent verification of school food service claims.</proviso></content> </appropriations> <appropriations level="small"> <heading>special supplemental nutrition program for women, infants, and children (wic)</heading> <content>For necessary expenses to carry out the special supplemental nutrition program as authorized by section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786), $3,924,000,000, to remain available through September 30, 1999: <proviso><i>Provided,</i> That none of the funds made available under this heading shall be used for studies and evaluations:</proviso> <proviso><i>Provided further,</i> That up to $12,000,000 may be used to carry out the farmers’ market nutrition program from any funds not needed to maintain current caseload levels:</proviso> <proviso><i>Provided further,</i> That notwithstanding sections 17(g), (h), and (i) of such Act, the Secretary shall adjust fiscal year 1998 State allocations to reflect food funds available to the State from fiscal year 1997 under sections 17(i)(3)(A)(ii) and 17(i)(3)(D):</proviso> <proviso><i>Provided further,</i> That the <page identifier="/us/stat/111/2100">111 STAT. 2100</page>Secretary shall allocate funds recovered from fiscal year 1997 first to States to maintain stability funding levels, as defined by regulations promulgated under section 17(g), and then to give first priority for the allocation of any remaining funds to States whose funding is less than their fair share of funds, as defined by regulations promulgated under section 17(g):</proviso> <proviso><i>Provided further,</i> That none of the funds in this Act shall be available to pay administrative expenses of WIC clinics except those that have an announced policy of prohibiting smoking within the space used to carry out the program:</proviso> <proviso><i>Provided further,</i> That none of the funds provided in this account shall be available for the purchase of infant formula except in accordance with the cost containment and competitive bidding requirements specified in section 17 of the Child Nutrition Act of 1966:</proviso> <proviso><i>Provided further,</i> That State agencies required to procure infant formula using a competitive bidding system may use funds appropriated by this Act to purchase infant formula under a cost containment contract entered into after September 30, 1996, only if the contract was awarded to the bidder offering the lowest net price, as defined by section 17(b)(20) of the Child Nutrition Act of 1966, unless the State agency demonstrates to the satisfaction of the Secretary that the weighted average retail price for different brands of infant formula in the State does not vary by more than five percent.</proviso></content> </appropriations> <appropriations level="small"> <heading>food stamp program</heading> <content>For necessary expenses to carry out the Food Stamp Act (7 U.S.C. 2011 et seq.), $25,140,479,000, of which $100,000,000 shall be placed in reserve for use only in such amounts and at such times as may become necessary to carry out program operations: <proviso><i>Provided,</i> That funds provided herein shall be expended in accordance with section 16 of the Food Stamp Act:</proviso> <proviso><i>Provided further,</i> That this appropriation shall be subject to any work registration or workfare requirements as may be required by law:</proviso> <proviso><i>Provided further,</i> That none of the funds made available under this heading shall be used for studies and evaluations.</proviso></content> </appropriations> <appropriations level="small"> <heading>commodity assistance program</heading> <content>For necessary expenses to carry out the commodity supplemental food program as authorized by section 4(a) of the Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c note) and for administrative expenses pursuant to section 204 of the Emergency Food Assistance Act of 1983, $141,000,000, to remain available through September 30, 1999: <proviso><i>Provided,</i> That none of these funds shall be available to reimburse the Commodity Credit Corporation for commodities donated to the program.</proviso></content> </appropriations> <appropriations level="small"> <heading>food donations programs for selected groups</heading> <content>For necessary expenses to carry out section 4(a) of the Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c note), and section 311 of the Older Americans Act of 1965 (42 U.S.C. 3030a), $141,165,000, to remain available through September 30, 1999.<page identifier="/us/stat/111/2101">111 STAT. 2101</page></content> </appropriations> <appropriations level="small"> <heading>food program administration</heading> <content>For necessary administrative expenses of the domestic food programs funded under this Act, $107,619,000, of which $5,000,000 shall be available only for simplifying procedures, reducing overhead costs, tightening regulations, improving food stamp coupon handling, and assistance in the prevention, identification, and prosecution of fraud and other violations of law: <proviso><i>Provided,</i> That this appropriation shall be available for employment pursuant to the second sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225), and not to exceed $150,000 shall be available for employment under 5 U.S.C. 3109.</proviso></content> </appropriations> </appropriations> <num value="V">TITLE V</num> <heading>FOREIGN ASSISTANCE AND RELATED PROGRAMS</heading> <appropriations level="small"> <heading>foreign agricultural service and general sales manager</heading> <subheading>(including transfers of funds)</subheading> <content><p class="indent0 fontsize10">For necessary expenses of the Foreign Agricultural Service, including carrying out title VI of the Agricultural Act of 1954 (7 U.S.C. 1761–1768), market development activities abroad, and for enabling the Secretary to coordinate and integrate activities of the Department in connection with foreign agricultural work, including not to exceed $128,000 for representation allowances and for expenses pursuant to section 8 of the Act approved August 3, 1956 (7 U.S.C. 1766), $135,561,000, of which $3,231,000 may be transferred from the Export Loan Program account in this Act, and $1,035,000 may be transferred from the Public Law 480 program account in this Act: <proviso><i>Provided,</i> That the Service may utilize advances of funds, or reimburse this appropriation for expenditures made on behalf of Federal agencies, public and private organizations and institutions under agreements executed pursuant to the agricultural food production assistance programs (7 U.S.C. 1736) and the foreign assistance programs of the International Development Cooperation Administration (22 U.S.C. 2392).</proviso></p> <p class="indent0 fontsize10">None of the funds in the foregoing paragraph shall be available to promote the sale or export of tobacco or tobacco products.</p> </content></appropriations> <appropriations level="small"> <heading>public law 480 program and grant accounts</heading> <subheading>(including transfers of funds)</subheading> <content><p class="indent0 fontsize10">For expenses during the current fiscal year, not otherwise recoverable, and unrecovered prior years’ costs, including interest thereon, under the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1691, 1701–1715, 1721–1726, 1727–1727f, and 1731–1736g), as follows: (1) $226,900,000 for Public Law 480 title I credit, including Food for Progress programs; (2) $17,608,000 is hereby appropriated for ocean freight differential costs for the shipment of agricultural commodities pursuant to title I of said Act and the Food for Progress Act of 1985; (3) $837,000,000 is hereby appropriated for commodities supplied in connection with dispositions abroad pursuant to title II of said Act; and (4) $30,000,000 is hereby appropriated for commodities supplied in connection with dispositions abroad pursuant to title III of said Act: <proviso><i>Provided,</i> That not to exceed 15 percent of the funds made <page identifier="/us/stat/111/2102">111 STAT. 2102</page>available to carry out any title of said Act may be used to carry out any other title of said Act: <i>Provided further,</i> That such sums shall remain available until expended (7 U.S.C. 2209b).</proviso></p> <p class="indent0 fontsize10">For the cost, as defined in section 502 of the Congressional Budget Act of 1974, of direct credit agreements as authorized by the Agricultural Trade Development and Assistance Act of 1954, and the Food for Progress Act of 1985. including the cost of modifying credit agreements under said Act, $176,596,000.</p> <p class="indent0 fontsize10">In addition, for administrative expenses to carry out the Public Law 480 title I credit program, and the Food for Progress Act of 1985, to the extent funds appropriated for Public Law 480 are utilized, $1,850,000.</p> </content></appropriations> <appropriations level="small"> <heading>commodity credit corporation export loans program account</heading> <subheading>(including transfers of funds)</subheading> <content>For administrative expenses to carry out the Commodity Credit Corporation’s export guarantee program, GSM 102 and GSM 103, $3,820,000; to cover common overhead expenses as permitted by section 11 of the Commodity Credit Corporation Charter Act and in conformity with the Federal Credit Reform Act of 1990, of which not to exceed $3,231,000 may be transferred to and merged with the appropriation for the salaries and expenses of the Foreign Agricultural Service, and of which not to exceed $589,000 may be transferred to and merged with the appropriation for the salaries and expenses of the Farm Service Agency.</content> </appropriations> <appropriations level="small"> <heading>export credit</heading> <content>The Commodity Credit Corporation shall make available not less than $5,500,000,000 in credit guarantees under its export credit guarantee program extended to finance the export sales of United States agricultural commodities and the products thereof, as authorized by section 202(a) and (b) of the Agricultural Trade Act of 1978 (7 U.S.C. 5641).</content> </appropriations> <appropriations level="small"> <heading>emerging markets export credit</heading> <content>The Commodity Credit Corporation shall make available not less than $200,000,000 in credit guarantees under its export guarantee program for credit expended to finance the export sales of United States agricultural commodities and the products thereof to emerging markets, as authorized by section 1542 of Public Law 101–624 (7 U.S.C. 5622 note).</content> </appropriations> <num value="VI">TITLE VI</num> <heading>RELATED AGENCIES AND FOOD AND DRUG ADMINISTRATION</heading> <subheading>DEPARTMENT OF HEALTH AND HUMAN SERVICES</subheading> <appropriations level="intermediate"> <heading>Food and Drug Administration</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content><p class="indent0 fontsize10">For necessary expenses of the Food and Drug Administration, including hire and purchase of passenger motor vehicles; for rental <page identifier="/us/stat/111/2103">111 STAT. 2103</page>of special purpose space in the District of Columbia or elsewhere; and for miscellaneous and emergency expenses of enforcement activities, authorized and approved by the Secretary and to be accounted for solely on the Secretary’s certificate, not to exceed $25,000; $948,705,000, of which not to exceed $91,204,000 in fees pursuant to section 736 of the Federal Food, Drug, and Cosmetic Act may be credited to this appropriation and remain available until expended: <proviso><i>Provided,</i> That fees derived from applications received during fiscal year 1998 shall be subject to the fiscal year 1998 limitation:</proviso> <proviso><i>Provided further,</i> That none of these funds shall be used to develop, establish, or operate any program of user fees authorized by 31 U.S.C. 9701.</proviso></p> <p class="indent0 fontsize10">In addition, fees pursuant to section 354 of the Public Health Service Act may be credited to this account, to remain available until expended.</p> <p class="indent0 fontsize10">In addition, fees pursuant to section 801 of the Federal Food, Drug, and Cosmetic Act may be credited to this account, to remain available until expended.</p> </content></appropriations> <appropriations level="small"> <heading>buildings and facilities</heading> <content>For plans, construction, repair, improvement, extension, alteration, and purchase of fixed equipment or facilities of or used by the Food and Drug Administration, where not otherwise provided, $21,350,000, to remain available until expended (7 U.S.C. 2209b).</content> </appropriations> <appropriations level="small"> <heading>rental payments (fda)</heading> <subheading>(including transfers of funds)</subheading> <content>For payment of space rental and related costs pursuant to Public Law 92–313 for programs and activities of the Food and Drug Administration which are included in this Act, $46,294,000: <proviso><i>Provided,</i> That in the event the Food and Drug Administration should require modification of space needs, a share of the salaries and expenses appropriation may be transferred to this appropriation, or a share of this appropriation may be transferred to the salaries and expenses appropriation, but such transfers shall not exceed 5 percent of the funds made available for rental payments (FDA) to or from this account.</proviso></content> </appropriations> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF THE TREASURY</heading> <appropriations level="intermediate"> <heading>Financial Management Service</heading> <appropriations level="small"> <heading>payments to the farm credit system financial assistance corporation</heading> <content>For necessary payments to the Farm Credit System Financial Assistance Corporation by the Secretary of the Treasury, as authorized by section 6.28(c) of the Farm Credit Act of 1971, for reimbursement of interest expenses incurred by the Financial Assistance Corporation on obligations issued through 1994, as authorized, $7,728,000.<page identifier="/us/stat/111/2104">111 STAT. 2104</page></content> </appropriations> </appropriations> </appropriations> <appropriations level="major"> <heading>INDEPENDENT AGENCIES</heading> <appropriations level="intermediate"> <heading>Commodity Futures Trading Commission</heading> <content>For necessary expenses to carry out the provisions of the Commodity Exchange Act (7 U.S.C. 1 et seq.), including the purchase and hire of passenger motor vehicles; the rental of space (to include multiple year Teases) in the District of Columbia and elsewhere; and not to exceed $25,000 for employment under 5 U.S.C. 3109; $58,101,000, including not to exceed $1,000 for official reception and representation expenses: <proviso><i>Provided,</i> That the Commission is authorized to charge reasonable fees to attendees of Commission sponsored educational events and symposia to cover the Commission’s costs of providing those events and symposia, and notwithstanding 31 U.S.C. 3302, said fees shall be credited to this account, to be available without further appropriation.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Farm Credit Administration</heading> <appropriations level="small"> <heading>limitation on administrative expenses</heading> <content>Not to exceed $34,423,000 (from assessments collected from farm credit institutions and from the Federal Agricultural Mortgage Corporation) shall be obligated during the current fiscal year for administrative expenses as authorized under 12 U.S.C. 2249: <proviso><i>Provided,</i> That this limitation shall not apply to expenses associated with receiverships.</proviso></content> </appropriations> </appropriations> </appropriations> <num value="VII">TITLE VII—</num><heading>GENERAL PROVISIONS</heading> <section> <num value="701"><inline class="smallCaps">Sec</inline>. 701.</num> <content class="inline">Within the unit limit of cost fixed by law, appropriations and authorizations made for the Department of Agriculture for the fiscal year 1998 under this Act shall be available for the purchase, in addition to those specifically provided for, of not to exceed 394 passenger motor vehicles, of which 391 shall be for replacement only, and for the hire of such vehicles.</content> </section> <section> <num value="702"><inline class="smallCaps">Sec</inline>. 702.</num> <content class="inline">Funds in this Act available to the Department of Agriculture shall be available for uniforms or allowances therefor as authorized by law (5 U.S.C. 5901–5902).</content> </section> <section> <num value="703"><inline class="smallCaps">Sec</inline>. 703.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s1623a">7 USC 1623a</ref>.</p></sidenote> <content class="inline">Not less than $1,500,000 of the appropriations of the Department of Agriculture in this Act for research and service work authorized by the Acts of August 14, 1946, and July 28, 1954 (7 U.S.C. 427, 1621–1629), and by chapter 63 of title 31, United States Code, shall be available for contracting in accordance with said Acts and chapter.</content> </section> <section> <num value="704"><inline class="smallCaps">Sec</inline>. 704.</num> <content class="inline">The cumulative total of transfers to the Working Capital Fund for the purpose of accumulating growth capital for data services and National Finance Center operations shall not exceed $2,000,000: <proviso><i>Provided,</i> That no funds in this Act appropriated to an agency of the Department shall be transferred to the Working Capital Fund without the approval of the agency administrator.</proviso></content> </section> <section> <num value="705"><inline class="smallCaps">Sec</inline>. 705.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s2209">7 USC 2209b</ref>.</p></sidenote> <content class="inline"><p class="indent0 fontsize10">New obligational authority provided for the following appropriation items in this Act shall remain available until expended (7 U.S.C. 2209b): Animal and Plant Health Inspection Service, the contingency fund to meet emergency conditions, fruit fly program, and integrated systems acquisition project; Farm Service Agency, salaries and expenses funds made available to county <page identifier="/us/stat/111/2105">111 STAT. 2105</page>committees; and Foreign Agricultural Service, middle-income country training program.</p> <p class="indent0 fontsize10">New obligational authority for the boll weevil program; up to 10 percent of the screwworm program of the Animal and Plant Health Inspection Service; Food Safety and Inspection Service, field automation and information management project; funds appropriated for rental payments; funds for the Native American Institutions Endowment Fund in the Cooperative State Research, Education, and Extension Service; and funds for the competitive research grants (7 U.S.C. 450i(b)), shall remain available until expended.</p> </content></section> <section> <num value="706"><inline class="smallCaps">Sec</inline>. 706.</num> <content class="inline">No part of any appropriation contained in this Act shall remain available for obligation beyond the current fiscal year unless expressly so provided herein.</content> </section> <section> <num value="707"><inline class="smallCaps">Sec</inline>. 707.</num> <content class="inline">Not to exceed $50,000 of the appropriations available to the Department of Agriculture in this Act shall be available to provide appropriate orientation and language training pursuant to Public Law 94–449.</content> </section> <section> <num value="708"><inline class="smallCaps">Sec</inline>. 708.</num> <content class="inline">No funds appropriated by this Act may be used to pay negotiated indirect cost rates on cooperative agreements or similar arrangements between the United States Department of Agriculture and nonprofit institutions in excess of 10 percent of the total direct cost of the agreement when the purpose of such cooperative arrangements is to carry out programs of mutual interest between the two parties. This does not preclude appropriate payment of indirect costs on grants and contracts with such institutions when such indirect costs are computed on a similar basis for all agencies for which appropriations are provided in this Act.</content> </section> <section> <num value="709"><inline class="smallCaps">Sec</inline>. 709.</num> <content class="inline">Notwithstanding any other provision of this Act,<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s612c">7 USC 612c note</ref>.</p></sidenote> commodities acquired by the Department in connection with Commodity Credit Corporation and section 32 price support operations may be used, as authorized by law (15 U.S.C. 714c and 7 U.S.C. 612c), to provide commodities to individuals in cases of hardship as determined by the Secretary of Agriculture.</content> </section> <section> <num value="710"><inline class="smallCaps">Sec</inline>. 710.</num> <content class="inline">None of the funds in this Act shall be available to reimburse the General Services Administration for payment of space rental and related costs in excess of the amounts specified in this Act; nor shall this or any other provision of law require a reduction in the level of rental space or services below that of fiscal year 1997 or prohibit an expansion of rental space or services with the use of funds otherwise appropriated in this Act. Further, no agency of the Department of Agriculture, from funds otherwise available, shall reimburse the General Services Administration for payment of space rental and related costs provided to such agency at a percentage rate which is greater than is available in the case of funds appropriated in this Act.</content> </section> <section> <num value="711"><inline class="smallCaps">Sec</inline>. 711.</num> <content class="inline">None of the funds in this Act shall be available to restrict the authority of the Commodity Credit Corporation to lease space for its own use or to lease space on behalf of other agencies of the Department of Agriculture when such space will be jointly occupied.</content> </section> <section> <num value="712"><inline class="smallCaps">Sec</inline>. 712.</num> <content class="inline">With the exception of grants awarded under the Small Business Innovation Development Act of 1982, Public Law 97–219 (15 U.S.C. 638), none of the funds in this Act shall be available to pay indirect costs on research grants awarded competitively by the Cooperative State Research, Education, and Extension <page identifier="/us/stat/111/2106">111 STAT. 2106</page>Service that exceed 14 percent of total Federal funds provided under each award.</content> </section> <section> <num value="713"><inline class="smallCaps">Sec</inline>. 713.</num> <content class="inline">Notwithstanding any other provisions of this Act, all loan levels provided in this Act shall be considered estimates, not limitations.</content> </section> <section> <num value="714"><inline class="smallCaps">Sec</inline>. 714.</num> <content class="inline">Appropriations to the Department of Agriculture for the cost of direct and guaranteed loans made available in fiscal year 1998 shall remain available until expended to cover obligations made in fiscal year 1998 for the following accounts: the rural development loan fund program account; the Rural Telephone Bank program account; the rural electrification and telecommunications loans program account; and the rural economic development loans program account.</content> </section> <section> <num value="715"><inline class="smallCaps">Sec</inline>. 715.</num> <content class="inline">Such sums as may be necessary for fiscal year 1998 pay raises for programs funded by this Act shall be absorbed within the levels appropriated in this Act.</content> </section> <section> <num value="716"><inline class="smallCaps">Sec</inline>. 716.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s2208">7 USC 2208 note</ref>.</p></sidenote> <heading><inline class="smallCaps">Hereafter</inline>:</heading> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Compliance With Buy American Act</inline>.—</heading><content>None of the funds made available in this Act may be expended by an entity unless the entity agrees that in expending the funds the entity will comply with sections 2 through 4 of the Act of March 3, 1933 (41 U.S.C. 10a–10c; popularly known as the “Buy American Act”).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Sense of Congress; Requirement Regarding Notice</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Purchase of American-Made Equipment and Products</inline>.—</heading><content>In the case of any equipment or product that may be authorized to be purchased with financial assistance provided using funds made available in this Act, it is the sense of the Congress that entities receiving the assistance should, in expending the assistance, purchase only American-made equipment and products.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Notice to recipients of assistance</inline>.—</heading><content>In providing financial assistance using funds made available in this Act, the head of each Federal agency shall provide to each recipient of the assistance a notice describing the statement made in paragraph (1) by the Congress.</content></paragraph> </subsection> <subparagraph class="indent2 fontsize10"><num value="c">(c)</num> <heading><inline class="smallCaps">Prohibition of Contracts With Persons Falsely Labeling Products as Made in America</inline>.—</heading><content>If it has been finally determined by a court or Federal agency that any person intentionally affixed a label bearing a “Made in America” inscription, or any inscription with the same meaning, to any product sold in or shipped to the United States that is not made in the United States, the person shall be ineligible to receive any contract or subcontract made with funds made available in this Act, pursuant to the debarment, suspension, and ineligibility procedures described in sections 9.400 through 9.409 of title 48, Code of Federal Regulations.</content></subparagraph> </section> <section> <num value="717"><inline class="smallCaps">Sec</inline>. 717.</num> <content class="inline">Notwithstanding the Federal Grant and Cooperative Agreement Act, marketing services of the Agricultural Marketing Service and the Animal and Plant Health Inspection Service may use cooperative agreements to reflect a relationship between the Agricultural Marketing Service or the Animal and Plant Health Inspection Service and a State or Cooperator to carry out agricultural marketing programs or to carry out programs to protect the Nation’s animal and plant resources.</content> </section> <section> <num value="718"><inline class="smallCaps">Sec</inline>. 718.</num> <content class="inline">None of the funds in this Act may be used to retire more than 5 percent of the Class A stock of the Rural Telephone <page identifier="/us/stat/111/2107">111 STAT. 2107</page>Bank or to maintain any account or subaccount within the accounting records of the Rural Telephone Bank the creation of which has not specifically been authorized by statute: <proviso><i>Provided,</i> That notwithstanding any other provision of law, none of the funds appropriated or otherwise made available in this Act may be used to transfer to the Treasury or to the Federal Financing Bank any unobligated balance of the Rural Telephone Bank telephone liquidating account which is in excess of current requirements and such balance shall receive interest as set forth for financial accounts in section 505(c) of the Federal Credit Reform Act of 1990.</proviso></content> </section> <section> <num value="719"><inline class="smallCaps">Sec</inline>. 719.</num> <content class="inline">None of the funds made available in this Act may be used to provide assistance to, or to pay the salaries of personnel who carry out a market promotion/market access program pursuant to section 203 of the Agricultural Trade Act of 1978 (7 U.S.C. 5623) that provides assistance to the United States Mink Export Development Council or any mink industry trade association.</content> </section> <section> <num value="720"><inline class="smallCaps">Sec</inline>. 720.</num> <content class="inline">Of the funds made available by this Act, not more than $1,000,000 shall be used to cover necessary expenses of activities related to all advisory committees, panels, commissions, and task forces of the Department of Agriculture except for panels used to comply with negotiated rule makings and panels used to evaluate competitively awarded grants.</content> </section> <section> <num value="721"><inline class="smallCaps">Sec</inline>. 721.</num> <content class="inline">None of the funds appropriated or otherwise made available by this Act shall be used to pay the salaries and expenses of personnel who carry out an export enhancement program if the aggregate amount of funds and/or commodities under such program exceeds $150,000,000.</content> </section> <section> <num value="722"><inline class="smallCaps">Sec</inline>. 722.</num> <content class="inline">None of the funds appropriated in this Act may be used to carry out the provisions of section 918 of Public Law 104–127, the Federal Agriculture Improvement and Reform Act.</content> </section> <section> <num value="723"><inline class="smallCaps">Sec</inline>. 723.</num> <content class="inline">No employee of the Department of Agriculture may be detailed or assigned from an agency or office funded by this Act to any other agency or office of the Department for more than 30 days unless the individual’s employing agency or office is fully reimbursed by the receiving agency or office for the salary and expenses of the employee for the period of assignment.</content> </section> <section> <num value="724"><inline class="smallCaps">Sec</inline>. 724.</num> <content class="inline">None or the funds appropriated or otherwise made available to the Department of Agriculture shall be used to transmit or otherwise make available to any non-Department of Agriculture employee questions or responses to questions that are a result of information requested for the appropriations hearing process.</content> </section> <section> <num value="725"><inline class="smallCaps">Sec</inline>. 725.</num> <content class="inline">None of the funds appropriated or otherwise made available in this Act may be expended or obligated to fund the activities of the Western Director and Special Assistant to the Secretary within the Office of the Secretary of Agriculture or any similar position.</content> </section> <section> <num value="726"><inline class="smallCaps">Sec</inline>. 726.</num> <content class="inline">None of the funds made available to the Department of Agriculture by this Act may be used to acquire new information technology systems or significant upgrades, as determined by the Office of the Chief Information Officer, without the approval of the Chief Information Officer and the concurrence of the Executive Information Technology Investment Review Board.</content> </section> <section> <num value="727"><inline class="smallCaps">Sec</inline>. 727.</num> <subsection class="inline"><num value="a">(a)</num> <content>None of the funds provided by this Act, or provided by previous Appropriations Acts to the agencies funded by this Act that remain available for obligation or expenditure in fiscal year 1998, or provided from any accounts in the Treasury of the United States derived by the collection of fees available to the <page identifier="/us/stat/111/2108">111 STAT. 2108</page>agencies funded by this Act, shall be available for obligation or expenditure through a reprogramming of funds which: (1) creates new programs; (2) eliminates a program, project, or activity; (3) increases funds or personnel by any means for any project or activity for which funds have been denied or restricted; (4) relocates an office or employees; (5) reorganizes offices, programs, or activities; or (6) contracts out or privatizes any functions or activities presently performed by Federal employees; unless the Appropriations Committees of both Houses of Congress are notified fifteen days in advance of such reprogramming of funds.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>None of the funds provided by this Act, or provided by previous Appropriations Acts to the agencies funded by this Act that remain available for obligation or expenditure in fiscal year 1998, or provided from any accounts in the Treasury of the United States derived by the collection of fees available to the agencies funded by this Act, shall be available for obligation or expenditure for activities, programs, or projects through a reprogramming of funds in excess of $500,000 or 10 percent, whichever is less, that: (1) augments existing programs, projects, or activities; (2) reduces by 10 percent funding for any existing program, project, or activity, or numbers of personnel by 10 percent as approved by Congress; or (3) results from any general savings from a reduction in personnel which would result in a change in existing programs, activities, or projects as approved by Congress; unless the Appropriations Committees of both Houses of Congress are notified fifteen days in advance of such reprogramming of funds.</content> </subsection> </section> <section> <num value="728"><inline class="smallCaps">Sec</inline>. 728.</num> <content class="inline">Section 3(c) of the Federal Noxious Weed Act of 1974 (7 U.S.C. 2802(c)) is amended by inserting before the period at the end the following: “, and includes kudzu (Pueraria lobata De)”.</content> </section> <section> <num value="729"><inline class="smallCaps">Sec</inline>. 729.</num> <content class="inline">Notwithstanding section 520 of the Housing Act of 1949, (42 U.S.C. 1490) the Martin Luther King area of Pawley’s Island, South Carolina, located in Georgetown County, shall be eligible for loans and grants under section 504 of the Housing Act of 1949.</content> </section> <section> <num value="730"><inline class="smallCaps">Sec</inline>. 730.</num> <content class="inline">None of the funds made available to the Food and Drug Administration by this Act shall be used to close or relocate the Food and Drug Administration Division of Drug Analysis in St. Louis, Missouri.</content> </section> <section> <num value="731"><inline class="smallCaps">Sec</inline>. 731.</num><sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote><chapeau>Effective on October 1, 1998, section 136(a) of the Agricultural Market Transition Act (7 U.S.C. 7236(a)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in paragraph (1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>Subject to paragraph (4), during</quotedText>” and inserting “<quotedText>During</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in subparagraph (B), by striking “<quotedText>130</quotedText>” and inserting “<quotedText>134</quotedText>”;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking paragraph (4); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by redesignating paragraph (5) as paragraph (4).</content></paragraph> </section> <section> <num value="732"><inline class="smallCaps">Sec</inline>. 732. </num><heading><inline class="smallCaps">Study of Northeast Interstate Dairy Compact. </inline></heading> <subsection class="inline"><num value="a">(a) </num><chapeau>Definitions.—In this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Child, senior, and low-income nutrition programs</inline>.—</heading><chapeau>The term “child, senior, and low-income nutrition programs” includes—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>the food stamp program established under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>the school lunch program established under the National School Lunch Act (42 U.S.C. 1751 et seq.);<page identifier="/us/stat/111/2109">111 STAT. 2109</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>the summer food service program for children established under section 13 of that Act (42 U.S.C. 1761);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D)</num> <content>the child and adult care food program established under section 17 of that Act (42 U.S.C. 1766);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E)</num> <content>the special milk program established under section 3 of the Child Nutrition Act of 1966 (42 U.S.C. 1772);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F)</num> <content>the school breakfast program established under section 4 of that Act (42 U.S.C. 1773);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">(G)</num> <content>the special supplemental nutrition program for women, infants, and children authorized under section 17 of that Act (42 U.S.C. 1786); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">(H)</num> <content>the nutrition programs and projects carried out under part C of title III of the Older Americans Act of 1965 (42 U.S.C. 3030e et seq.).</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Compact.—The term “Compact” means the Northeast Interstate Dairy Compact.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>Northeast interstate dairy compact.—The term “Northeast Interstate Dairy Compact” means the Northeast Interstate Dairy Compact referred to in section 147 of the Agricultural Market Transition Act (7 U.S.C. 7256).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Director</inline>.—</heading><content>The term “Director” means the Director of the Office of Management and Budget.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Evaluation</inline>.—</heading><content>Not later than December 31, 1997, the Director shall conduct, complete, and transmit to Congress a comprehensive economic evaluation of the direct and indirect effects of the Northeast Interstate Dairy Compact and other factors which affect the price of fluid milk.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Components</inline>.—</heading><chapeau>In conducting the evaluation, the Director shall consider, among other factors, the effects of implementation of the rules and regulations of the Northeast Interstate Dairy Compact Commission, such as rules and regulations relating to over-order Class I pricing and pooling provisions. This evaluation shall consider such effects prior to implementation of the Compact and that would have occurred in the absence of the implementation of the Compact. The evaluation shall include an analysis of the impacts on—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>child, senior, and low-income nutrition programs including impacts on schools and institutions participating in the programs, on program recipients, and other factors;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>the wholesale and retail cost of fluid milk;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <chapeau>the level of milk production, the number of cows, the number of dairy farms, and milk utilization in the Compact region, including—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>changes in the level of milk production, the number of cows, and the number of dairy farms in the Compact region relative to trends in the level of milk production and trends in the number of cows and dairy farms prior to implementation of the Compact;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>changes in the disposition of bulk and packaged milk for Class I, II, or III use produced in the Compact region to areas outside the region relative to the milk disposition to areas outside the region;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <chapeau>changes in—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>the share of milk production for Class I use of the total milk production in the Compact region; and<page identifier="/us/stat/111/2110">111 STAT. 2110</page></content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>the share of milk production for Class II and Class III use of the total milk production in the Compact region;</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>dairy farmers and dairy product manufacturers in States and regions outside the Compact region with respect to the impact of changes in milk production, and the impact of any changes in disposition of milk originating in the Compact region, on national milk supply levels and farm level milk prices nationally; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5)</num> <content>the cost of carrying out the milk price support program established under section 141 of the Agricultural Market Transition Act (7 U.S.C. 7251).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Additional States and Compacts</inline>.—</heading><content>The Director shall evaluate and incorporate into the evaluation required under subsection (b) an evaluation of the economic impact of adding additional States to the Compact for the purpose of increasing prices paid to milk producers.</content> </subsection> </section> <section> <num value="733"><inline class="smallCaps">Sec</inline>. 733.</num> <content class="inline">From proceeds earned from the sale of grain in the disaster reserve established in the Agricultural Act of 1970, the Secretary may use up to an additional $2,000,000 to implement a livestock indemnity program as established in Public Law 10518.</content> </section> <section> <num value="734"><inline class="smallCaps">Sec</inline>. 734.</num> <content class="inline">Planting of Wild Rice on Contract Acreage.— None of the funds appropriated in this Act may be used to administer the provision of contract payments to a producer under the Agricultural Market Transition Act (7 U.S.C. 7201 et seq.) for contract acreage on which wild rice is planted unless the contract payment is reduced by an acre for each contract acre planted to wild rice.</content> </section> <section> <num value="735"><inline class="smallCaps">Sec</inline>. 735.</num> <heading><inline class="smallCaps">Rural Housing Programs</inline>.</heading> <subsection class="inline"><num value="a">(a)</num> <heading><inline class="smallCaps">Housing in Underserved Areas Program</inline>.—</heading><content>The first sentence of section 509(f)(4)(A) of the Housing Act of 1949 (42 U.S.C. 1479(f)(4)(A)) is amended by striking “<quotedText>fiscal year 1997</quotedText>” and inserting “<quotedText>fiscal year 1998</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Housing and Related Facilities for Elderly Persons and Families and Other Low-Income Persons and Families</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Authority to make loans</inline>.—</heading><content>Section 515(b)(4) of the Housing Act of 1949 (42 U.S.C. 1485(b)(4)) is amended by striking “<quotedText>September 30, 1997</quotedText>” and inserting “<quotedText>September 30, 1998</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Set-aside for nonprofit entities</inline>.—</heading><content>The first sentence of section 515(w)(1) of the Housing Act of 1949 (42 U.S.C. 1485(w)(1)) is amended by striking “<quotedText>fiscal year 1997</quotedText>” and inserting “<quotedText>fiscal year 1998</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Loan term</inline>.—</heading><chapeau>Section 515 of the Housing Act of 1949 (42 U.S.C. 1485) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in subsection (a)(2), by striking “<quotedText>up to fifty</quotedText>” and inserting “<quotedText>up to 30</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>in subsection (b)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by striking paragraph (2) and inserting the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>such a loan may be made for a period of up to 30 years from the making of the loan, but the Secretary may provide for periodic payments based on an amortization schedule of 50 years with a final payment of the balance due at the end of the term of the loan;”;</content></paragraph> </quotedContent> </content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>in paragraph (5), by striking “<quotedText>and</quotedText>” at the end;<page identifier="/us/stat/111/2111">111 STAT. 2111</page></content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>in paragraph (6), by striking the period at the end and inserting and”; and</content></clause> <clause class="indent3 fontsize10"><num value="iv">(iv)</num> <content>by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <chapeau>the Secretary may make a new loan to the current borrower to finance the final payment of the original loan for an additional period not to exceed twenty years, if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <chapeau>the Secretary determines—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>it is more cost-efficient and serves the tenant base more effectively to maintain the current property than to build a new property in the same location; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the property has been maintained to such an extent that it warrants retention in the current portfolio because it can be expected to continue providing decent, safe, and affordable rental units for the balance of the loan; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>the Secretary determines—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>current market studies show that a need for low-income rural rental housing still exists for that area; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>any other criteria established by the Secretary has been met.”.</content></clause> </subparagraph> </paragraph> </quotedContent> </content></clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Loan Guarantees for Multifamily Rental Housing in Rural Areas</inline>.—</heading><chapeau>Section 538 of the Housing Act of 1949 (42 U.S.C. 1490p–2) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in subsection (q), by striking paragraph (2) and inserting the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Annual limitation on amount of loan guarantee</inline>.—</heading><content>In each fiscal year, the Secretary may enter into commitments to guarantee loans under this section only to the extent that the costs of the guarantees entered into in such fiscal year do not exceed such amount as may be provided in appropriation Acts for such fiscal year.”;</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking subsection (t) and inserting the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="t">“(t)</num> <heading><inline class="smallCaps">Authorization of Appropriations</inline>.—</heading><content>There are authorized to be appropriated for fiscal year 1998 for costs (as such term is defined in section 502 of the Congressional Budget Act of 1974) of loan guarantees made under this section such sums as may be necessary for such fiscal year.”; and</content> </subsection> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content><p class="indent0 fontsize10">in subsection (u), by striking “<quotedText>1996</quotedText>” and inserting “<quotedText>1998</quotedText>”.<page identifier="/us/stat/111/2112">111 STAT. 2112</page></p> <p class="indent0 fontsize10">This Act may be cited as the “<shortTitle role="act">Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1998</shortTitle>”.</p> </content></paragraph> </subsection> </section> Approved November 18, 1997.
LEGISLATIVE HISTORY—H.R. 2160 (S. 1033): HOUSE REPORTS: Nos. 105–178 (Comm. on Appropriations) and 105–252 (Comm. of Conference). SENATE REPORTS: No. 105–51 accompanying S. 1033 (Comm. on Appropriations). CONGRESSIONAL RECORD, Vol. 143 (1997):

July 16, 17, 22, 24, considered and passed House.

Sept. 2, 3, considered and passed Senate, amended, in lieu of S. 1033.

Oct. 6, House agreed to conference report.

Oct. 29, Senate agreed to conference report.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):

Nov. 18, Presidential statement.

Nov. 20, President’s special message on line item veto.

 FEDERAL REGISTER, Vol. 62 (1997):

Nov. 24, Cancellation of items pursuant to the Line Item Veto Act.

 Public Law 105–87: To designate the United States Post Office building located at 153 East 110th Nov. 19, 1997 Street, New York, New York, as the “Oscar Garcia Rivera Post Office Building”. Public Law87 Public Law 105–87 111 Stat. 2113 1997-11-19 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2113 Public Law105–87 105th Congress
An Act To designate the United States Post Office building located at 153 East 110th Nov. 19, 1997 Street, New York, New York, as the “Oscar Garcia Rivera Post Office Building”.

Nov. 19, 1997

[H.R. 282]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. DESIGNATION. The United States Post Office building located at 153 East 110th Street, New York, New York, shall be known and designated as the “Oscar Garcia Rivera Post Office Building”.
SEC. 2. REFERENCES. Any reference in a law, map, regulation, document, paper, or other record of the United States to the United States Post Office building referred to in section 1 shall be deemed to be a reference to the “Oscar Garcia Rivera Post Office Building”.
Approved November 19, 1997.s
LEGISLATIVE HISTORY—H.R. 282: CONGRESSIONAL RECORD, Vol. 143 (1997):

Oct. 21, considered and passed House.

Nov. 9, considered and passed Senate.

 Public Law 105–88: To designate the United States Post Office building located at 313 East Broadway in Glendale, California, as the “Carlos J. Moorhead Post Office Building”. Public Law88 Public Law 105–88 111 Stat. 2114 1997-11-19 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2114 Public Law105–88 105th Congress
An Act To designate the United States Post Office building located at 313 East Broadway in Glendale, California, as the “Carlos J. Moorhead Post Office Building”.

Nov. 19, 1997

[H.R. 681]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. DESIGNATION. The United States Post Office building located at 313 East Broadway in Glendale, California, shall be known and designated as the “Carlos J. Moorhead Post Office Building”.
SEC. 2. REFERENCES. Any reference in a law, map, regulation, document, paper, or other record of the United States to the building referred to in section 1 shall be deemed to be a reference to the “Carlos J. Moorhead Post Office Building”.
Approved November 19, 1997.
LEGISLATIVE HISTORY—H.R. 681: CONGRESSIONAL RECORD, Vol. 143 (1997):

Oct. 21, considered and passed House.

Nov. 9, considered and passed Senate.
POPULAR NAME INDEX Note: Part 1 contains pages 1–1106; Part 2 contains pages 1107–2114; Part 3 contains pages 2115–3010. Each part contains entire Popular Name and Subject Indexes. A1 Adoption and Safe Families Act of 1997 2115 Agricultural Market Transition Act, amendments 2108 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1996, amendments 2084 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1998 2079 Airport and Airway Trust Fund Tax Reinstatement Act of 1997 4 Alaska National Interest Lands Conservation Act, amendments 1592–1594 Amtrak Reform and Accountability Act of 1997 2570 Anadromous Fish Conservation Act, amendments 2677 Anti-Car Theft Improvements Act of 1996, amendments 2215 Antiterrorism and Effective Death Penalty Act of 1996, amendments 2468 Arms Export Control Act, amendments 2411, 2412 Army Reserve-National Guard Equity Reimbursement Act 2688 Asian Elephant Conservation Act of 1997 2150 Assisted Suicide Funding Restriction Act of 1997 23 Atlantic Striped Bass Conservation Act, amendments 2672 Atlantic Striped Bass Conservation Act Amendments of 1997 2672 Atomic Energy Act of 1954, amendments 2042 Aviation Insurance Reauthorization Act of 1997 2640 Balanced Budget Act of 1997 251 Balanced Budget Act of 1997, amendments 1098, 1099, 1519, 2187, 2188, 2521 Balanced Budget Downpayment Act, I, amendments 257, 1364, 1407 Balanced Budget and Emergency Deficit Control Act of 1985, amendments 697, 2125 Ballistic Missile Defense Act of 1995, amendments 1665 Budget Enforcement Act of 1997 677 Census of Agriculture Act of 1997 2274 Central Intelligence Agency Act of 1949, amendments 2257, 2258, 2260 Central Intelligence Agency Retirement Act, amendments 659 Charitable Donation Antitrust Immunity Act of 1997 241 Charitable Gift Annuity Antitrust Relief Act of 1995, amendments 241 Child Care and Development Block Grant Act of 1990, amendments 645, 646 Civil Justice Reform Act of 1990, amendments 1173 Clinger-Cohen Act of 1996, amendments 1849, 1851 Coast and Geodetic Survey Commissioned Officers’ Act of 1948, amendments 1803, 1804 Coast Guard Authorization Act of 1996, amendments 1599 Communications Act of 1934, amendments 258, 260, 265, 266, 268, 2540 Computer Security Act of 1987, amendments 1907 Congressional Budget Act of 1974, amendments 678–680, 682–688, 690–692, 695, 696, 2125 Congressional Budget and Impoundment Control Act of 1974, amendments 678, 684, 687, 688, 690, 692, 695–697 Congressional Operations Appropriations Act, 1991, amendments 1180 Congressional Operations Appropriations Act, 1998 1177 Consolidated Farm and Rural Development Act, amendments 2094, 2275 Consolidated Omnibus Budget Reconciliation Act of 1985, amendments 345, 550, 2685 Contract Disputes Act of 1978, amendments 1906 Contract with America Advancement Act of 1996, amendments 624 Controlled Substances Act, amendments 2328 Cost of Higher Education Review Act of 1997 207 Cranston-Gonzalez National Affordable Housing Act, amendments 1366A2 Defense Authorization Amendments and Base Closure and Realignment Act, amendments 1906, 1996 Defense Base Closure and Realignment Act of 1990, amendments 1997 Defense Conversion, Reinvestment, and Transition Assistance Act of 1992, amendments 1924 Delaware River Basin Compact, amendments 176 Department of Commerce and Related Agencies Appropriations Act, 1998 2471 Department of Defense Appropriation Authorization Act, 1978, amendments 1916 Department of Defense Appropriations Act, 1996, amendments 1735 Department of Defense Appropriations Act, 1997, amendments 1245 Department of Defense Appropriations Act, 1998 1203 Department of Education Appropriations Act, 1998 1496 Department of Energy Organization Act, amendments 245 Department of Energy Standardization Act of 1997 245 Department of Health and Human Services Appropriations Act, 1997, amendments 188, 637 Department of Health and Human Services Appropriations Act, 1998 1477 Department of the Interior and Related Agencies Appropriations Act, 1981, amendments 1568 Department of the Interior and Related Agencies Appropriations Act, 1989, amendments 1563 Department of the Interior and Related Agencies Appropriations Act, 1994, amendments 1547 Department of the Interior and Related Agencies Appropriations Act, 1995, amendments 1563 Department of the Interior and Related Agencies Appropriations Act, 1996, amendments 181, 1547, 1596 Department of the Interior and Related Agencies Appropriations Act, 1997, amendments 181, 1547, 1564 Department of the Interior and Related Agencies Appropriations Act, 1998 1543 Department of the Interior and Related Agencies Appropriations Act, 1998, amendments 2523 Department of Justice Appropriations Act, 1993, amendments 2460, 2467 Department of Justice Appropriations Act, 1995, amendments 2458 Department of Justice Appropriations Act, 1998 2440 Department of Labor Appropriation Act, 1958, amendments 1476 Department of Labor Appropriations Act, 1997, amendments 3 Department of Labor Appropriations Act, 1998 1467 Department of State and Related Agencies Appropriations Act, 1995, amendments 1158 Department of State and Related Agencies Appropriations Act, 1998 2494 Department of Transportation and Related Agencies Appropriations Act, 1996, amendments 2214 Department of Transportation and Related Agencies Appropriations Act, 1997, amendments 193, 195 Department of Transportation and Related Agencies Appropriations Act, 1998 1425 Department of Transportation and Related Agencies Appropriations Act, 1998, amendments 1522 Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1993, amendments 2460, 2467 Departments of Commerce, Justice, and State, the Judicially, and Related Agencies Appropriations Act, 1995, amendments 2458 Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1997, amendments 3, 1272A3 Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1998 2440 Departments of Labor, and Health, Education, and Welfare Appropriation Act, 1958, amendments 1476 Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 1997, amendments 3, 1519 Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 1998 1467 Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996, amendments 1364 Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997, amendments 201, 1366, 1374, 1407 Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998 1344 Depository Institutions Disaster Relief Act of 1997 211 Developmental Disabilities Assistance and Bill of Rights Act, amendments 28 Digital Performance Right in Sound Recordings Act of 1995, amendments 1534 District of Columbia Appropriations Act, 1998 2160 District of Columbia Bond Financing Improvements Act of 1997 768 District of Columbia Court Reform and Criminal Procedure Act of 1970, amendments 762 District of Columbia Depository Act of 1977, amendments 754 District of Columbia Financial Responsibility and Management Assistance Act of 1995, amendments 760, 777, 779, 782, 2186 District of Columbia Government Comprehensive Merit Personnel Act of 1978, amendments 14, 760, 2182 District of Columbia Income and Franchise Tax Act of 1947, amendments 2187 District of Columbia Inspector General Improvement Act of 1997 14 District of Columbia Management Reform Act of 1997 731 District of Columbia Police and Firemen’s Salary Act of 1958, amendments 1285, 2188 District of Columbia Policemen and Firemen’s Retirement and Disability Act, amendments 2184 District of Columbia Procurement Practices Act of 1985, amendments 777 District of Columbia Retirement Protection Act of 1997 715 District of Columbia Retirement Reform Act, amendments 758, 759, 2184 District of Columbia Revenue Act of 1939, amendments 765, 767, 768, 778 District of Columbia School Reform Act of 1995, amendments 2190–2193 District of Columbia Self-Government and Governmental Reorganization Act, amendments 753, 768, 2174, 2187 Dolphin Protection Consumer Information Act, amendments 1125, 1127, 1128 Drug-Free Communities Act of 1997 224 Drug-Free Workplace Act of 1988, amendments 1838 Earthquake Hazards Reduction Act of 1977, amendments 1159, 1162–1164 Economic Espionage Act of 1996, amendments 2568, 2569 Elementary and Secondary Education Act of 1965, amendments 214, 215, 1497, 1498, 1508 Emergency Student Loan Consolidation Act of 1997 1522 Emergency Supplemental Appropriations for Additional Disaster Assistance, for Antiterrorism Initiatives, for Assistance in the Recovery from the Tragedy that Occurred at Oklahoma City, and Rescissions Act, 1995, amendment 1364A4 Employee Retirement Income Security Act of 1974, amendments 647, 648, 948, 1058, 1061, 1062, 1066, 1069–1071, 1089, 1097, 1457, 2139, 2141 Energy Policy Act of 1992, amendments 237, 1097, 2634 Energy Policy and Conservation Act, amendments 676, 677 Energy and Water Development Appropriations Act, 1990, amendments 1323 Energy and Water Development Appropriations Act, 1998 1320 Everglades National Park Protection and Expansion Act of 1989, amendments 1541, 1542 Executive Office Appropriations Act, 1998 1290 Export-Import Bank Act of 1945, amendments 1158, 2528–2530 Export-Import Bank Reauthorization Act of 1997 2528 Fair Credit Reporting Act, amendments 2255 Fair Labor Standards Act of 1938, amendments 1477 Federal Acquisition Streamlining Act of 1994, amendments 1848, 1849 Federal Advisory Committee Act, amendments 2689 Federal Advisory Committee Act Amendments of 1997 2689 Federal Aviation Reauthorization Act of 1996, amendments 2215 Federal Credit Reform Act of 1990, amendments 692–695 Federal Deposit Insurance Act, amendments 238 Federal Election Campaign Act of 1971, amendments 1305, 1316 Federal Employees’ Retirement System Open Enrollment Act of 1997 1318 Federal Energy Administration Act of 1974, amendments 245 Federal Fire Prevention and Control Act of 1974, amendments 2264 Federal Food, Drug, and Cosmetic Act, amendments 2296 Federal Home Loan Bank Act, amendments 2633 Federal Housing Enterprises Financial Safety and Soundness Act of 1992, amendments 1403 Federal Law Enforcement Pay Reform Act of 1990, amendments 1288 Federal Noxious Weed Act of 1974, amendments 2108 Federal Physicians Comparability Allowance Act of 1978, amendments 1307 Federal Property and Administrative Services Act of 1949, amendments 244, 1167, 1300, 1836, 1850, 1851, 1906, 2468 50 States Commemorative Coin Program Act 2534 Food and Drug Administration Modernization Act of 1997 2296 Food Security Act of 1985, amendments 2276 Food Stamp Act of 1977, amendments 216, 217, 251, 252, 255, 256 Foreign Assistance Act of 1961, amendments 2433, 2435 Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1990, amendments 2432 Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1995, amendments 2416 Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1997, amendments 2430, 2438 Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1998 2386 Foreign Relations Authorization Act, Fiscal Years 1986 and 1987, amendments 2522 Foreign Relations Authorization Act, Fiscal Years 1994 and 1995, amendments 2471 Foreign Service Act of 1980, amendments 660, 661 Forest Resources Conservation and Shortage Relief Act of 1990, amendments 1618, 1620–1622 Forest Resources Conservation and Shortage Relief Act of 1997 1617 General Aviation Revitalization Act of 1994, amendments 2215 Hawaiian Homes Commission Act, 1920, amendments 235 Health Insurance Portability and Accountability Act of 1996, amendments 386, 1095A5 Higher Education Act of 1965, amendments 214, 648, 652, 1522 Hispanic Cultural Center Act of 1997 2543 Homeless Veterans Comprehensive Service Programs Act of 1992, amendments 2287, 2288 Hood Bay Land Exchange Act of 1997 1269 Hoopa Valley Reservation South Boundary Adjustment Act, amendments 1527 House of Representatives Administrative Reform Technical Corrections Act, amendments 1183, 1184 Housing Act of 1949, amendments 2110, 2111 Housing and Community Development Act of 1987, amendments 1419 Housing and Community Development Act of 1992, amendments 201 HUBZone Act of 1997 2627 HUD Demonstration Act of 1993, amendments 201 Illegal Immigration Reform and Immigrant Responsibility Act of 1996, amendments 641, 1175, 2196, 2198, 2199, 2201, 2644 Immigration and Nationality Act, amendments 1175, 1350, 1459, 1521, 1916, 2200, 2201, 2458, 2460, 2471, 2639 Immigration and Nationality Act of 1952, amendments 2457 Immigration and Nationality Act of 1990, amendments 2459 Immigration and Nationality Technical Corrections Act of 1994, amendments 1115 Improving America’s Schools Act of 1994, amendments 1140 Independent Agencies Appropriations Act, 1989, amendments 1299 Independent Agencies Appropriations Act, 1998 1295 Indian Gaming Regulatory Act, amendments 1566, 2522 Indian Health Care Improvement Act, amendments 27 Individuals with Disabilities Education Act, amendments 37 Individuals with Disabilities Education Act Amendments of 1997 37 Inspector General Act of 1978, amendments 2586 Intelligence Authorization Act, Fiscal Year 1990, amendments 1863 Intelligence Authorization Act for Fiscal Year 1996, amendments 2262 Intelligence Authorization Act for Fiscal Year 1998 2248 Intermodal Surface Transportation Efficiency Act of 1991, amendments 2553, 2556–2559 Internal Revenue Code of 1986, amendments 4, 331, 333, 334, 360, 486, 604, 605, 671–674, 721, 722, 788, 1104, 1319, 1412, 2204, 2560, 2561 International Air Transportation Competition Act of 1979, amendments 1447 International Dolphin Conservation Program Act 1122 International Financial Institutions Act, amendments 2426 Investment Advisers Supervision Coordination Act, amendments 15 John F. Kennedy Center Act, amendments 2148 John F. Kennedy Center Parking Improvement Act of 1997 2148 Judicial Improvements and Access to Justice Act, amendments 1173 Judicial Improvements Act of 1990, amendments 1173 Judiciary Appropriations Act, 1998, The 2488 Land and Water Conservation Fund Act of 1965, amendments 1617 Law Enforcement Technology Advertisement Clarification Act of 1997 2273 Legal Services Corporation Act, amendments 28 Legislative Branch Appropriation Act, 1968, amendments 192 Legislative Branch Appropriations Act, 1987, amendments 1184 Legislative Branch Appropriations Act, 1991, amendments 1180, 1201 Legislative Branch Appropriations Act, 1996, amendments 1183 Legislative Branch Appropriations Act, 1998 1177 Lower Brule Sioux Tribe Infrastructure Development Trust Fund Act 2563A6 Marine Mammal Protection Act of 1972, amendments 174, 187, 1122, 1137 Marjory Stoneman Douglas Wilderness and Ernest F. Coe Visitor Center Designation Act 1540 Merchant Marine Act, 1936, amendments 835, 2075, 2076 Miccosukee Settlement Act of 1997 1624 Michigan Indian Land Claims Settlement Act 2652 Military Construction Appropriations Act, 1998 1142 Military Construction Authorization Act, 1968, amendments 2015 Military Construction Authorization Act, 1985, amendments 2007, 2010 Military Construction Authorization Act for Fiscal Year 1995, amendments Military Construction Authorization Act for Fiscal Year 1996, amendments 2014 Military Construction Authorization Act for Fiscal Year 1997, amendments 1973, 1974, 1977, 1981, 1983, 2007, 2009 Military Construction Authorization Act for Fiscal Year 1998 1966 Military Selective Service Act, amendments 1783 Morris K. Udall Parkinson’s Disease Research Act of 1997 1519 Multifamily Assisted Housing Reform and Affordability Act of 1997 1384 Museum and Library Services Act, amendments 2548 Museum and Library Services Technical and Conforming Amendments of 1997 2548 Nation’s Capital Bicentennial Designation Act 2180 National Capital Revitalization and Self-Government Improvement Act of 1997 712 National Defense Authorization Act for Fiscal Year 1986, amendments 1885 National Defense Authorization Act, Fiscal Year 1989, amendments 1801, 1885, 2042 National Defense Authorization Act for Fiscal Year 1991, amendments 1702, 1840, 1905 National Defense Authorization Act for Fiscal Year 1993, amendments 1709, 1905, 2042 National Defense Authorization Act for Fiscal Year 1994, amendments 1915, 2042, 2048 National Defense Authorization Act for Fiscal Year 1995, amendments 1524, 1667, 1815, 1834, 1982, 2040 National Defense Authorization Act for Fiscal Year 1996, amendments 1649, 1702, 1713, 1714, 1758, 1845, 1869, 1880, 1885, 1905, 2006, 2014, 2042 National Defense Authorization Act for Fiscal Year 1997, amendments 1649, 1657, 1666, 1686, 1809, 1810, 1813, 1845, 1860, 1881, 1904, 1954, 1955, 1973, 1974, 1977, 1981, 1983, 2007, 2009, 2039, 2042, 2047, 2049, 2050 National Defense Authorization Act for Fiscal Year 1998 1629 National Defense Authorization Act for Fiscal Year 1998, amendments 2525, 2551 National Defense Authorization Act for Fiscal Years 1988 and 1989, amendments 1906 National Defense Authorization Act for Fiscal Years 1990 and 1991, amendments 1840, 2042 National Defense Authorization Act for Fiscal Years 1992 and 1993, amendments 1905, 1918 National Flood Insurance Act, amendments 1377 National Flood Insurance Act of 1968, amendments 1157, 1377 National Foundation on the Arts and the Humanities Act of 1965, amendments 1605, 1606, 2522 National Gambling Impact Study Commission Act, amendments 248 National Geologic Mapping Act of 1992, amendments 1107 National Geologic Mapping Reauthorization Act of 1997 1107 National Health Museum Development Act 1524 National Housing Act, amendments 201, 1366, 1367, 1406, 1409, 1412–1414 National Institute of Standards and Technology Act, amendments 1907 National Maritime Heritage Act of 1994, amendments 1878 National Narcotics Leadership Act of 1988, amendments 224A7 National Parks and Recreation Act of 1978, amendments 1541 National Security Act of 1947, amendments 2251, 2252, 2261 National Telecommunications and Information Administration Organization Act, amendments 262–265 National Wildlife Refuge System Administration Act of 1966, amendments 1252 National Wildlife Refuge System Improvement Act of 1997 1252 Need-Based Educational Aid Antitrust Protection Act of 1997 1140 New Mexico Statehood and Enabling Act Amendments of 1997 1113 Nicaraguan Adjustment and Central American Relief Act 2193 Nicaraguan Adjustment and Central American Relief Act, amendments 2644 1997 Emergency Supplemental Appropriations Act for Recovery from Natural Disasters, and for Overseas Peacekeeping Efforts, Including Those in Bosnia 158 1997 Emergency Supplemental Appropriations Act for Recovery from Natural Disasters, and for Overseas Peacekeeping Efforts, Including Those in Bosnia, amendments 1248, 1272 No Electronic Theft (NET) Act 2678 Northeast Rail Service Act of 1981, amendments 2586 Office of Federal Procurement Policy Act, amendments 1837, 1838, 1843, 1847–1849, 1851, 1906, 2634 Oklahoma City National Memorial Act of 1997 1261 Omnibus Appropriations Act for Fiscal Year 1997, amendments 1564 Omnibus Budget Reconciliation Act of 1986, amendments 549, 550 Omnibus Budget Reconciliation Act of 1987, amendments 336 Omnibus Budget Reconciliation Act of 1989, amendments 425, 528 Omnibus Budget Reconciliation Act of 1990, amendments 665 Omnibus Budget Reconciliation Act of 1993, amendments 260, 337, 376, 712, 1097, 2130 Omnibus Consolidated Appropriations Act, 1997, amendments 3, 181, 188, 637, 1289, 1547 Omnibus Consolidated Rescissions and Appropriations Act of 1996, amendments 181, 1547, 1596, 2185 Omnibus Crime Control and Safe Streets Act of 1968, amendments 2468 Omnibus Parks and Public Lands Management Act of 1996, amendments 1566, 1595, 1607 Oroville-Tonasket Claim Settlement and Conveyance Act 16 Pam Lychner Sexual Offender Tracking and Identification Act of 1996, amendments 2464 Panama Canal Act of 1979, amendments 2063 Panama Canal Commission Authorization Act for Fiscal Year 1998 2062 Panama Canal Commission Compensation Fund Act of 1988, amendments 2072 Panama Canal Transition Facilitation Act of 1997 2062 Parole Commission Phaseout Act of 1996, amendments 745 Peace Corps Act, amendments 27 Personal Responsibility and Work Opportunity Reconciliation Act of 1996, amendments 191, 595, 597–603, 618–621, 623, 637, 640–643 Philippine Army, Scouts, and Guerilla Veterans of World War II Naturalization Act of 1997 2459 Pilot Records Improvement Act of 1996, amendments 2650 Postal Service Appropriations Act, 1998 1290 President John F. Kennedy Assassination Records Collection Act of 1992, amendments 240 Protection and Advocacy for Mentally Ill Individuals Act of 1986, amendments 28 Public Health Service Act, amendments 27, 29, 574, 1494, 1520, 1804, 2296 Reclamation Wastewater and Groundwater Act, amendments 1339A8 Rehabilitation Act of 1973, amendments 28 Retirement Protection Act of 1994, amendments 1067 Riegle-Neal Amendments Act of 1997 238 Rocky Mountain Arsenal National Wildlife Refuge Act of 1992, amendments 2007 San Carlos Apache Tribe Water Rights Settlement Act of 1992, amendments 181, 182, 187 Satellite Home Viewer Act of 1994, amendments 1529, 1530 Savings Are Vital to Everyone’s Retirement Act of 1997 2139 Sikes Act, amendments 2016–2018, 2020–2023 Sikes Act Improvement Act of 1997 2016 Small Business Act, amendments 1848, 1906, 2594, 2597, 2598, 2600, 2606, 2611, 2617–2624, 2627, 2629, 2631, 2632, 2635, 2637 Small Business Administration Reauthorization and Amendment Act of 1988, amendments 2624 Small Business Administration Reauthorization and Amendments Act of 1994, amendments 2606, 2624, 2627 Small Business Competitiveness Demonstration Program Act of 1988, amendments 174, 2616 Small Business Economic Policy Act of 1980, amendments 2633, 2637 Small Business Investment Act of 1958, amendments 2601–2604, 2633 Small Business Job Protection Act of 1996, amendments 987, 1086 Small Business Reauthorization Act of 1997 2592 Smith-Hughes Vocational Education Act, amendments 653 Social Security Act, amendments 26, 27, 34, 204, 270, 577, 711, 880, 961, 962, 1063, 1319, 1412, 1517, 1518, 1521, 1522, 2116–2118, 2120–2122, 2125–2128,2130–2134, 2188–2190 Social Security Amendments of 1983, amendments 550 Social Security Amendments of 1994, amendments 644 Social Security Independence and Program Improvements Act of 1994, amendments 625 Stamp Out Breast Cancer Act 1119 Stewart B. McKinney Homeless Assistance Act, amendments 2288 Strategic and Critical Materials Stock Piling Act, amendments 2058 Supplemental Appropriations Act, 1973, amendments 1180 Supplemental Appropriations Act, 1987, amendments 192 Support for East European Democracy Act, amendments 2438 Surface Transportation Extension Act of 1997 2552 Susquehanna River Basin Compact, amendments 176 Tax Reform Act of 1984, amendments 1098 Tax Reform Act of 1986, amendments 959, 1098 Taxpayer Bill of Rights 2, amendments 1096 Taxpayer Browsing Protection Act 1104 Taxpayer Relief Act of 1997 788 Technical and Miscellaneous Revenue Act of 1988, amendments 995 Third Supplemental Appropriations Act, 1957, amendments 1181 Trade Act of 1974, amendments 902 Treasury Department Appropriations Act, 1998 1272 Treasury and General Government Appropriations Act, 1998 1272 Treasury and General Government Appropriations Act, 1998, amendments 1451, 2523 Treasury, Postal Service and General Government Appropriations Act, 1989 1299 Treasury, Postal Service and General Government Appropriations Act, 1992, amendments 1306 Treasury, Postal Service and General Government Appropriations Act, 1997, amendments 1288 Tuna Conventions Act, amendments 1137, 1138 Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, amendments 2384 United States Fire Administration Authorization Act for Fiscal Years 1998 and 1999 2264A9 United States Housing Act of 1937, amendments 201, 257, 639, 1364, 1365, 1406, 1407, 1416 United States $1 Coin Act of 1997 2536 Uruguay Round Agreements Act, amendments 1097 USEC Privatization Act, amendments 1341 Veterans’ Benefits Act of 1997 2277 Veterans’ Benefits Improvement Act of 1994, amendments 2288 Veterans’ Benefits and Services Act of 1988, amendments 2287 Veterans’ Cemetery Protection Act of 1997 2202 Veterans’ Compensation Rate Amendments of 1997 2155 Veterans’ Medical Programs Amendments of 1992, amendments 2287 Veterans Reconciliation Act of 1997 663 Victim Rights Clarification Act of 1997 12 Victims of Crime Act of 1984, amendments 2457 Violent Crime Control and Law Enforcement Act of 1994, amendments 702, 2461–2464 Volunteer Protection Act of 1997 218 War Crimes Act of 1996, amendments 2436 Warner Canyon Ski Hill Land Exchange Act of 1997 1117 Weapons of Mass Destruction Control Act of 1992, amendments 1956 Women’s Business Ownership Act of 1988, amendments 2608–2611, 2634 Yavapai-Prescott Indian Treaty Settlement Act of 1994, amendments 1339 SUBJECT INDEX See Children, Youth, and Families Law Enforcement Technology Advertisement Clarification Act of 1997 2273 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1998 2079 Census of Agriculture Act of 1997 2274 Food and Drug Administration Modernization Act of 1997 2296 Grand Teton National Park Study, gazing use and open space 1537 See Transportation See Transportation Alabama-Coosa-Tallapossa River Basin Compact 2233 Apalachicola-Chattahoochee-Flint River Basin Compact 2219 Department of the Interior and Related Agencies Appropriations Act, 1998 1543 Hood Bay Land Exchange Act of 1997 1269 Alaska Pulp Corporation 1269 See Immigration Incorporation, technical correction 2270 See Transportation Charitable Donation Antitrust Immunity Act of 1997 241 Need-Based Educational Aid Antitrust Protection Act of 1997 1140 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies, 1998 2079 Amtrak Reform and Accountability Act of 1997 2570 Central Intelligence Agency Retirement and Disability System 2248 Earthquake hazards reduction 1159 Intelligence Authorization Act for Fiscal Year 1998 2248 Military Construction Authorization Act for Fiscal Year 1998 1966 National Defense Authorization Act for Fiscal Year 1998 1629 Panama Canal Commission Authorization Act for Fiscal Year 1998 2062 Refugee and entrant assistance 2639 U.S. district courts, arbitration 1173 Commerce Department and related agencies, 1998 2471 Commerce, Justice, and State, the Judiciary, and related agencies, 1998 2440 Congressional operations, 1998 1177 Continuing, 1998 1153,1343,1453,1454, 1456,1628 Defense Department, 1998 1203 District of Columbia, 1998 2160 Education Department, 1998 1496 Emergency supplemental, 1997 158 Energy and water development, 1998 1320 Executive Office, 1998 1290 Foreign operations, export financing, and related programs, 1998 2386 Health and Human Services Department, 1998 1477 Independent agencies, 1998 1295 Interior Department and related agencies, 1998 1543 Judiciary, 1998 2488 Justice Department, 1998 2440 Labor Department, 1998 1467 Labor, Health and Human Services, and Education, and related agencies, 1998 1467 Legislative Branch, 1998 1177 Military construction, 1998 1142 Omnibus Consolidated Appropriations Act, 1997, technical corrections 3 Postal Service, 1998 1290 State Department and related agencies, 1998 2494 Transportation Department and related agencies, 1998 1425 Treasury and general Government, 1998 1272 Treasury Department, 1998 1272 Veterans Affairs and Housing and Urban Development, and independent agencies, 1998 1344 Aristide, Jean-Bertrand 2502 Arkansas Post National Memorial, boundary adjustment 1567 1997 Emergency Supplemental Appropriations Act for Recovery from Natural Disasters, and for Overseas Peacekeeping Efforts, Including Those in Bosnia 158 Air Force Sergeants Association, federal charter, recognition and grant 1963B2 Army Reserve-National Guard Equity Reimbursement Act 2688 Department of Defense Appropriations Act, 1998 1203 Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1998 2386 Military Construction Authorization Act for Fiscal Year 1998 1966 National Defense Authorization Act for Fiscal Year 1998 1629 Public Affairs Specialty, establishment 1765 Technical corrections 2551 National Defense Authorization Act for Fiscal Year 1998 1947 See Armed Forces Permanent authority 1165 See Transportation Robert R. Ingram, medal of honor 2218 Baillergeau, Eugene 2520 Baker, Vernon J. 1759 Depository Institutions Disaster Relief Act of 1997 211 Export-Import Bank Reauthorization Act of 1997 2528 Riegle-Neal Amendments Act of 1997 238 See Fish and Wildlife Beaubrun, Mario 2520 Bertin, Mireille Durocher 2520 Better Health Plan Inc. 249 Advisory Commission on Drug-Free Communities, establishment 231 Amtrak Reform Board, establishment 2588 Amtrak Reform Council, establishment 2579 Assassination Records Review Board, extension 240 Commission on Military Training and Gender-Related Issues, establishment 1750 Department of Energy Security Management Board, establishment 2048 District of Columbia Correction Information Council, establishment 736 District of Columbia Truth in Sentencing Commission, establishment 740 Federal Advisory Committee Act Amendments of 1997 2689 Franklin Delano Roosevelt Memorial Commission, termination 1601 Medicare Payment Advisory Commission, establishment 350 National Bipartisan Commission on the Future of Medicare, establishment 347 National Commission on the Cost of Higher Education, establishment 207 National Council on the Arts, appointment and composition 1605 National Gambling Impact Study Commission, tort claims, clarification 248 National Health Museum Commission, establishment 1525 North Pacific Research Board, establishment 1608 Panama Canal Board of Contract Appeals, establishment 2071 Panama Canal Commission Authorization Act for Fiscal Year 1998 2062 Physician Payment Review Commission membership, term extension 31 Prospective Payment Assessment Commission membership, term extension 31 See Securities 1997 Emergency Supplemental Appropriations Act for Recovery from Natural Disasters, and for Overseas Peacekeeping Efforts, Including Those in Bosnia 158 Brennan, William J., Jr. 2963 Budget Balanced Budget Act of 1997 251 Budget Enforcement Act of 1997 677 Taxpayer Relief Act of 1997 788 Business and Industry HUBZone Act of 1997 2627 Small Business Reauthorization Act of 1997 2592 Carlos J. Moorhead Post Office Building, designation 2114 Hoopa Valley Reservation South Boundary Adjustment Act 1527 Land conveyance 1166 Trinity Lake, designation 1141B3 See Water See Health and Health Care Law enforcement donation, surplus, authorization 244 Warner Canyon Ski Hill Land Exchange Act of 1997 1117 Carter, Edward A. 1759 Arlington National Cemetery, interment or memorialization prohibition 2381 National Cemetery System, interment or memorialization prohibition 2381 State-owned veterans cemeteries, grant conditions 2382 Census of Agriculture Act of 1997 2274 Chalot, John Andre 2699 See Nonprofit Organizations Adoption and Safe Families Act of 1997 2115 International children, immunization requirements, exemption 1459 Boys and Girls Clubs of America, grants 2568 Certificate of citizenship, special transition rule, elimination 1115 Drug-Free Communities Act of 1997 224 Individuals with Disabilities Education Act Amendments of 1997 37 International family planning programs, Presidential finding 9 Missing children, penalty and franked mail authorization, extension 2542 Chilove, Joseph 2520 Christian, William H., Jr. 1172 Christopher, Warren 2705 Office of Employment Discrimination Complaint Adjudication, establishment 2280 Miccosukee Settlement Act of 1997 1624 Michigan Indian Land Claims Settlement Act 2652 National Gambling Impact Study Commission, tort clarification 248 Oronville-Tonasket Claim Settlement and Conveyance Act 16 See Currency See Education Eagles Nest Wilderness, expansion 1462 Land exchange 1460 Raggeds Wilderness, boundary adjustment and land conveyance 1463 White River National Forest, boundary adjustment 1465 Department of Commerce and Related Agencies Appropriations Act, 1998 2471 United States Trade Representative, appointment waiver 11 See Boards and Commissions Law Enforcement Technology Advertisement Clarification Act of 1997 2273 No Electronic Theft (NET) Act 2678 Satellite carriers, transmission fees 1529 Telecommunications, common carriers, designation 2540 Adjournment 2703, 2704, 2706, 2760, 2762, 2764, 2768 Days of remembrance of victims of the Holocaust, ceremony 2706 Jack Swigert 2707 Leslie Townes Hope 2766 Mother Teresa 2709 National Peace Officers’ Memorial Service 2708 Olympic torch relay 2710 Patriarch Bartholomew 2764 SAFE KIDS Buckle Up Car Seat Safety Check 2761 Soap box derby races 2709 Coral reef ecosystems 2765 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1998 2766 Export-Import Bank Reauthorization Act of 1997 2769 Federal Budget, fiscal year 1988 2710 High fructose corn syrup 2763 Joint session 2703, 2704, 2768 Presidential inauguration 2703 “How Our Laws Are Made” 2767B4 “Our Flag” 2766 “The Constitution of the United States of America” 2767 Robinson, Jackie, lifetime achievements 2706 Warren Christopher 2705 William J. Brennan 2761 Congressional gold medals Francis Albert Sinatra 32 Mother Teresa 35 Patriarch Bartholomew 1170 Congressional Operations Appropriations Act, 1998 1177 Enrolled bills, parchment printing, waiver 250, 2527 Hawaiian Homes Commission amendments, consent 235 Alabama-Coosa-Tallapoosa River Basin Compact, congressional consent 2233 Apalachicola-Chattahoochee-Flint River Basin Compact 2219 Chickasaw Trail Economic Development Compact 2669 Metropolitan Area Transit Regulation Compact 2686 Legislative Branch Appropriations Act, 1998 1177 Library of Congress, national audiovisual conservation center, property acquisition 2667 One Hundred Fifth Congress, second session, convening 2646 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1998 2091 Asian Elephant Conservation Act of 1997 2150 Department of the Interior and Related Agencies Appropriations Act, 1998 1543 Forest Resources Conservation and Shortage Relief Act of 1997 1617 International Dolphin Conservation Program Act 1122 J. Phil Campbell, Senior, Natural Resource Conservation Center, GA, designation 21 National Wildlife Refuge System Improvement Act of 1997 1252 Sikes Act Improvement Act of 1997 2016 See Drugs and Drug Abuse Arbitration panels, establishment 1533 Fees 1529 No Electronic Theft (NET) Act 2678 Registration and infringement actions 1532 Restored works 1530 Satellite carriers 1529 Judiciary Appropriations Act, 1998 2488 U.S. district courts, arbitration, appropriation authorization 1173 50 States Commemorative Coin Program Act 2534 United States $1 Coin Act of 1997 2536 User fees, access 2685 Davis, John Wesley 2697 Congressional gold medal 32, 35, 1170 Medal of honor 2218 See Banks and Banking See Handicapped 1997 Emergency Supplemental Appropriations Act for Recovery from Natural Disasters, and for Overseas Peacekeeping Efforts, Including Those in Bosnia 158 Depository Institutions Disaster Relief Act of 1997 211 Earthquake hazards reduction, appropriations authorization 1159 Hansen’s Disease 1494 Morris K. Udall Parkinson’s Disease Research Act of 1997 1519 Annual Federal payment, eliminated 777 Balanced Budget Act of 1997 251 District of Columbia Appropriations Act, 1998 2160 District of Columbia Bond Financing Improvements Act of 1997 768 District of Columbia Correction Information Council, establishment 736 District of Columbia Inspector General Improvement Act 14 District of Columbia Management Reform Act of 1997 731 District of Columbia Retirement Protection Act of 1997 715 District of Columbia’ Truth in Sentencing Commission, establishment 740B5 Federal Bureau of Investigation, Washington Field Office Memorial Building, designation 1172 Franklin Delano Roosevelt Memorial, addition 246 Metropolitan Area Transit Regulation Compact 2686 Metropolitan Washington Airports 2205 Nation’s Capital Bicentennial Designation Act 2180 National Capital Revitalization and Self-Government Improvement Act of 1997 712 National Health Museum, DC, designation 1525 Offender Supervision, Defender and Courts Services Agency, establishment 748 Taxpayer Relief Act of 1997 788 See Canines International Dolphin Conservation Program Act 1122 Dos Palos Ag Boosters 1166 Drug-Free Communities Act of 1997 224 Food and Drug Administration Modernization Act of 1997 2296 Dumarsais, Romulus 2520 See Disaster Assistance Balanced Budget Act of 1997 251 Center for Historically Black Heritage, FL, construction 2642 Cost of Higher Education Review Act of 1997 207 Department of Education Appropriations Act, 1998 1496 Emergency Student Loan Consolidation Act of 1997 1522 Individuals with Disabilities Education Act Amendments of 1997 37 Need-Based Educational Aid Antitrust Protection Act of 1997 1140 Office of Special Education Programs, establishment 46 Taxpayer Relief Act of 1997 788 See Energy See Communications Asian Elephant Conservation Act of 1997 2150 See Labor and Employment Department of Energy Standardization Act of 1997 245 Electric and magnetic fields research and public information dissemination program, extension 237 Energy and Water Development Appropriations Act, 1998 1320 See Suicide Export-Import Bank Reauthorization Act of 1997 2528 Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1998 2386 Exume, Jean-Joseph 2520 See Federal Buildings and Facilities See Children, Youth and Families Andrew Jacobs, Jr. Post Office Building, IN, designation 2137 Carlos J. Moorhead Post Office Building, CA, designation 2114 David B. Champagne Post Office Building, RI, designation 1455 David W. Dyer Federal Building and United States Courthouse, FL, designation 2146 Douglass Applegate Post Office, OH, designation 2154 Federal Bureau of Investigation, Washington Field Office Memorial Building, DC, designation 1172 Frank M. Tejeda Post Office Building, TX, designation 10 Howard M. Metzenbaum United States Courthouse, OH, designation 2533 J. Phil Campbell, Senior, Natural Resources Conservation Center, GA, designation 21 J. Roy Rowland United States Courthouse, GA, designation 2147 John F. Kennedy Center Parking Improvement Act of 1997 2148 John N. Griesemer Post Office Building, MO, designation 2562 John T. Myers Post Office Building, IN, designation 2138 Martin V.B. Bostetter, Jr. United States Courthouse, VA, designation 2532B6 Oscar Garcia Rivera Post Office Building, NY, designation 2113 Peter J. McCloskey Postal Facility, PA, designation 2159 Robert J. Dole United States Courthouse, KS, designation 1342 Wm. Jennings Bryan Dorn Department of Veterans Affairs Medical Center, SC, designation 2294 Feuille, Jean-Hubert 2520 See Banks and Banking United States Fire Administration Authorization Act for Fiscal Years 1998 and 1999 2264 Atlantic Striped Bass Conservation Act Amendments of 1997 2672 Sikes Act Improvement Act of 1997 2016 Fleurival, Jacques 2520 Apalachicola-Chattahoochee-Flint River Basin Compact 2219 Center for Historically Black Heritage, construction 2642 David W. Dyer Federal Building and United States Courthouse, designation 2146 Marjory Stoneman Douglass Wilderness and Ernest F. Coe Visitor Center Designation Act 1540 Miccosukee Settlement Act of 1997 1624 Florida A&M University 2642 See Agriculture Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1998 2101 Department of State and Related Agencies Appropriations Act, 1998 2494 Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1998 2386 Hong Kong Economics and Trade Offices, privileges, exemptions, and immunities, extension 236 International population planning program, Presidential finding, approval 9 National Defense Authorization Act for Fiscal Year 1998 1927, 1958 Nicaraguan Adjustment and Central American Relief Act 2193 Forest Resources Conservation and Shortage Relief Act of 1997 1617 See Children, Youth, and Families National Geologic Mapping Reauthorization Act of 1997 1107 Alabama-Coosa-Tallapoosa River Basin Compact 2233 Apalachicola-Chattahoochee-Flint River Basin Compact 2219 J. Roy Rowland United States Courthouse, designation 2147 Plains Railroad Depot, acquisition 2247 Canines, law enforcement surplus donation, authorization 244 Charitable donation, surplus property 1167 Gonzalez, Michel 2520 Balanced Budget Act of 1997 251 Federal Employees’ Retirement System Open Enrollment Act of 1997 1318 Taxpayer Browsing Protection Act 1104 District of Columbia, annual Federal payment, eliminated 777 District of Columbia Management Reform Act of 1997 731 District of Columbia Offender Supervision, Defender and Courts Services Agency, establishment 748 Office of Employment Discrimination Complaint Adjudication, establishment 2280 Office of Multifamily Housing Assistance Restructuring, establishment 1420 Office of Special Education Programs, establishment 46 Office of Women’s Business Ownership, establishment 2613 Oklahoma City National Memorial Trust, establishment 1262 Boys and Girls Clubs of America 2568 Center for Historically Black Heritage, FL, construction 2642 Hispanic Cultural Center Act of 1997 2543 Grimar, Leslie 2520 Group Hospitalization and Medical Services, Inc. 2684B7 Individuals with Disabilities Education Act Amendments of 1997 37 Hawaiian Homes Commission amendments, congressional consent 235 Assisted Suicide Funding Restriction Act of 1997 23 Balanced Budget Act of 1997 251 Department of Health and Human Services Appropriations Act, 1998 1477 Group Hospitalization and Medical Services, Inc. Federal charter, amendment 2684 Medicare and Medicaid Better Health Plan Inc., medicaid enrollment rule, waiver 249 Medicare+Choice Program, establishment 275 National Health Museum Development Act 1524 Nurses and Nursing Training and competency evaluation programs 34 Stamp Out Breast Cancer Act 1119 Hermann, Michelange 2520 Plains Railroad Depot, GA, acquisition 2247 Economic and Trade Offices, privileges, exemptions, and immunities, extension 236 Balanced Budget Act of 1997 251 Department of Veterans Affairs and Housing and Urban Development and Independent Agencies Appropriations Act, 1998 1344 Low-income housing, surplus property, donation 1167 Multifamily Assisted Housing Reform and Affordability Act of 1997 1384 Office of Multifamily Housing Assistance Restructuring, establishment 1420 Taxpayer Relief Act of 1997 788 Au pairs programs 1165 Certificate of citizenship, special transition rule for children, elimination 1115 Charities, visa fees, waiver 1175 Deportable aliens awaiting arraignment identification program, establishment 2647 Displaced persons, relocation assistance and real property acquisition, prohibition 2384 Employer sanctions program, paperwork deadline, extension 1175 Internationally adopted children, immunization requirements, exemption 1459 Nicaraguan Adjustment and Central American Relief Act 2193 Philippine Army, Scouts, and Guerilla Veterans of World War II Naturalization Act of 1997 2459 Refugee and entrant assistance, appropriation authorization 2639 Special immigrant religious worker program, extension 1175 Technical corrections 2644 See Exports and Imports Andrew Jacobs, Jr. Post Office Building, designation 2137 John T. Myers Post Office Building, designation 2138 Inskeep, Jean H. 2667 Inskeep, Russell H. 2667 Aviation Insurance Reauthorization Act of 1997 2640 Amtrak Reform and Accountability Act of 1997 2570 Atlantic Striped Bass Conservation Act Amendments of 1997 2672 Charitable donation, surplus property 1167 Individuals with Disabilities Education Act Amendments of 1997 37 Riegle-Neal Amendments Act of 1997 238 See Foreign Relations See Foreign Relations Alabama Coosa-Tallapoosa River Basin Compact 2233 Apalachicola-Chattahoochee-Flint River Basin Compact 2219 Chickasaw Trail Economic Development Compact 2669 Metropolitan Area Transit Regulation Compact 2686 See Securities Izmery, Antoine 2520B8 Robert J. Dole United States Courthouse, designation 1342 Department of Labor Appropriations Act, 1998 1467 Immigration, sanctions program, extension 1175 Investment managers, employee benefits, registration 1457 Office of Employment Discrimination Complaint Adjudication, establishment 2280 Pilots records 2650 Lake, Anthony 2520 Canines, surplus donation, authorization 244 Department of Justice Appropriations Act, 1998 2440 Law Enforcement Technology Advertisement Clarification Act of 1997 2273 No Electronic Theft (NET) Act 2678 Deportable aliens awaiting arraignment identification program, establishment 2647 Veterans’ Cemetery Protection Act of 1997 2202 Victims Rights Clarification Act of 1997 12 Leroy, Antoine 2520 Museum and Library Services Technical and Conforming Amendments of 1997 2548 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1998 2079 Balanced Budget Act of 1997 251 Department of Defense Appropriations Act, 1998 1203 Department of the Interior and Related Agencies Appropriations Act, 1998 1543 Department of Transportation and Related Agencies Appropriations Act, 1998 1425 Department of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998 1344 Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1998 2440 Energy and Water Development Appropriations Act, 1998 1320 Military Construction Appropriations Act, 1998 1142 Taxpayer Relief Act of 1997 788 Treasury and General Government Appropriations Act, 1998 1272 Emergency Student Loan Consolidation Act of 1997 1522 Penalty and franked mail authorization, missing children, extension 2542 Malary, Guy 2520 National Geologic Mapping Reauthorization Act of 1997 1107 Marie, Claude Yves 2520 International Dolphin Conservation Program Act 1122 Martinez, Martha Dixon 1172 Metropolitan Area Transit Regulation Compact 2686 Mayard, Max 2520 See Health and Health Care Meili, Davide 2695 Meili, Giuseppina 2695 Meili, Michel Christopher 2695 Meili, Mirjam Naomi 2695 Michigan Indian Land Claims Settlement Act 2652 Reversionary land interest, release 1268 See National Defense Miller, Michael J. 1172 Department of the Interior and Related Agencies Appropriations Act, 1998 1543 Center for Historically Black Heritage, FL, construction 2642 Hispanic Cultural Center Act of 1997 2543 Office of Women’s Business Ownership, establishment 2613 Chickasaw Trail Economic Development Compact 2669 John N. Griesemer Post Office Building, designation 2562 Moser, Roy Desmond 2698B9 Museum and Library Services Technical and Conforming Amendments of 1997 2548 National Health Museum Development Act 1524 See Drugs and Drug Abuse Department of Defense Appropriations Act, 1998 1203 Intelligence Authorization Act for Fiscal Year 1998 2248 Military Construction Appropriations Act, 1998 1142 National Defense Authorization Act for Fiscal Year 1998 1629 Technical corrections 2551 Hoopa Valley Reservation South Boundary Adjustment Act 15227 White River National Forest, CO, boundary adjustment 1465 Army Reserve-National Guard Equity Reimbursement Act 2688 Arkansas Post National Memorial, AR, boundary adjustment 1567 Bandelier National Monument, NM, land transfer 2050 Franklin Delano Roosevelt Memorial, DC, addition 246 Grand Teton National Park study, WY, grazing and open space 1537 Marjory Stoneman Douglass Wilderness and Ernest F. Coe Visitor Center Designation Act 1540 Oklahoma City National Memorial Act of 1997 1261 Eagles Nest Wilderness, CO, expansion 1462 Raggeds Wilderness, CO, boundary adjustment and land conveyance 1463 National Wildlife Refuge System Improvement Act of 1997 1252 Department of the Interior and Related Agencies Appropriations Act, 1998 1543 Hoopa Valley Reservation South Boundary Adjustment Act 1527 Lower Brule Sioux Tribe Infrastructure Development Trust Fund Act 2563 Miccosukee Settlement Act of 1997 1624 Michigan Indian Land Claims Settlement Act 2652 See Disaster Assistance See Conservation Department of the Interior and Related Agencies Appropriations Act, 1998 1570 Hispanic Cultural Center Act of 1997 2543 Land conveyance 2523 New Mexico Statehood and Enabling Act Amendments of 1997 1113 Oscar Garcia Rivera Post Office Building, NY, designation 2113 Charitable Donation Antitrust Immunity Act of 1997 241 Donation, surplus property 1167 Nonimmigrants, visa fees, waiver 1175 Volunteer Protection Act of 1997 218 See Health and Health Care Douglas Applegate Post Office, designation 2154 Howard M. Metzenbaum United States Courthouse, designation 2533 Land conveyance 2268 Oklahoma City National Memorial Act of 1997 1261 Land conveyance 1116 Warner Canyon Ski Hill Land Exchange Act of 1997 1117 Palmisano, Anthony 1172 Panama Canal Commission Authorization Act for Fiscal Year 1998 2062 Panama Canal Transition Facilitation Act of 1997 2062 Patten, Christopher F. 1947 Peter J. McCloskey Postal Facility, designation 2159B10 Stamp Out Breast Cancer Act 1119 International family planning programs, finding 9 Preval, Rene 2520 See Law Enforcement and Crime Taxpayer Browsing Protection Act 1104 William J. Brennan, Jr. 2963 Adoption Month 2796, 3006 African American History Month 2857 America Goes Back to School 2970 American Heart Month 2858 American Indian Heritage Month 2809, 3005 American Red Cross Month 2861 Asian/Pacific American Heritage Month 2902 Austrian-American Day 2982 Bill of Rights Day 2838 Breast Cancer Awareness Month 2984 Cancer Control Month 2868 Captive Nations Week 2961 Character Counts Week 2781, 3000 Child Abuse Prevention Month 2870 Child Health Day 2776, 2989 Child Passenger Safety Week 2860 Children’s Day 2783, 2997 Citizenship Day 2976 Columbus Day 2784, 2996 Constitution Week 2976 Consumers Week 2794, 3003 Crime Victims’ Rights Week 2891 D.A.R.E. Day 2884 Day of Concern About Young People and Gun Violence 2778, 3007 Day of Hope and Renewal 2843 Day of Prayer 2894 Defense Transportation Day 2905 Disability Employment Awareness Month 2987 Domestic Violence Awareness Month 2986 Drunk and Drugged Driving Prevention Month 2825 Education and Sharing Day, U.S.A 2893 Employer Support of the Guard and Reserve Week 3004 Family Caregivers Week 2813 Family Week 2820 Farm-City Week 2812 Farm Safety and Health Week 2981 Father’s Day 2925 Fire Prevention Week 2773, 2988 Flag Day 2923 Flag Week 2923 Forest Products Week 2793, 2999 Former Prisoner of War Recognition Day 2883 General Pulaski Memorial Day 2780, 2993 German-American Day 2774, 2991 Gold Star Mother’s Day 2983 Great American Smokeout Day 2821 Greek Independence Day: A National Day of Celebration of Greek and American Democracy 2867 Hispanic Heritage Month 2972 Historically Black Colleges and Universities Week 2979 Honoring the Filipino Veterans of World War II 2792 Human Rights Day 2838 Human Rights Week 2838 International Rural Women’s Day 2998 Irish-American Heritage Month 2862 Jewish Heritage Week 2905 Korean War Veterans Armistice Day 2963 Law Day, U.S.A. 2898 Leif Erikson Day 2777, 2992 Loyalty Day 2900 Maritime Day 2909 Martin Luther King, Jr., Federal Holiday 2842 Minority Enterprise Development Week 2978 Mother’s Day 2903 Older Americans Month 2899 Older Workers Employment Week 2866 Organ and Tissue Donor Awareness Week 2895 Pan American Day 2887 Pan American Week 2887 Parents’ Day 2964 Park Week 2897 Pay Inequity Awareness Day 2885 Peace Officers Memorial Day 2903 Pearl Harbor Remembrance Day 2837 Poison Prevention Week 2865 Police Week 2903 POW/MIA Recognition Day 2977 Prayer for Peace, Memorial Day 2910 Religious Freedom Day 2841 Safe Boating Week 2907 Save Your Vision Week 2864 School Lunch Week 2782, 2995 Security Act of 1947, fiftieth anniversary 2974 Service and Volunteer Week 2886B11 Small Business Week 2922 Thanksgiving Day 2814 Transportation Week 2905 United Nations Day 2795, 3001 Veterans Day 2810, 3008 Week of Food Recovery 2971 White Cane Safety Day 2785, 2994 Wildlife Refuge Week 2775 Wildlife Week 2896 Women’s Equality Day 2969 Women’s History Month 2863 World AIDS Day 2823 World Trade Week 2908 Wright Brothers Day 2840 Sudan, immigrant and nonimmigrant entry, suspension 2822 Accelerated schedule of duty elimination, implementation 2966 Agricultural products 2833 Broom imports 2826 Cotton, modifications 2798 Generalized System of Preferences, amendments 2786, 2844, 2888, 2911 Pharmaceuticals and chemical intermediates, implementation 2871 Romania, most-favored-nation treatment, extension 2812 World Trade Organization Ministerial Declaration on Trade in Information Technology Products and the Agreement on Distilled Spirits 2926 West Bank, Gaza Strip, and industrial zones, duty-free treatment 2815 Electric and magnetic fields research and public information dissemination program, extension 237 California, land conveyance 1166 Colorado, land exchange 1460 Department of the Interior and Related Agencies Appropriations Act, 1998 1543 Eagles Nest Wilderness, CO, expansion 1462 Hood Bay Land Exchange Act of 1997 1269 Michigan, revisionary interest, release 1268 National Geologic Mapping Reauthorization Act of 1997 1107 New Mexico, land conveyance 2523 Ohio, land conveyance 2268 Oregon, land conveyance 1116 Oroville-Tonasket Claim Settlement and Conveyance Act 16 Raggeds Wilderness, CO, boundary adjustment and land conveyance 1463 Warner Canyon Ski Hill Land Exchange 1167 White River National Forest, CO, boundary adjustment 1465 Library of Congress, national audiovisual conservation center, property acquisition 2667 Assassination Records Review Board, extension 240 See Immigration Special immigrant worker program, extension 1175 Balanced Budget Act of 1997 251 Central Intelligence Agency Retirement and Disability System, appropriations authorization 2248 District of Columbia Retirement Protection Act of 1997 715 Federal Employees’ Retirement System Open Enrollment Act of 1997 1318 Investment managers, registration 1457 Savings Are Vital to Everyone’s Retirement Act of 1997 2139 Taxpayer Relief Act of 1997 788B12 David B. Champagne Post Office Building, designation 1455 Alabama-Coosa-Tallapoosa River Basin Compact 2233 Apalachicola-Chattahoochee-Flint River Basin Compact 2219 See Copyrights District of Columbia Bond Financing Improvements Act of 1997 768 Advisers supervision, effective date, extension 15 Managers, employee benefits, registration 1457 New Mexico Statehood Enabling Act Amendments of 1997 1113 Taxpayer Relief Act of 1997 788 See Business and Industry See Postal Service See Intergovernmental Relations Stewart, Clarence P. 2522 See Education See Drugs and Drug Abuse Assisted Suicide Funding Restriction Act of 1997 23 Swigert, Jack 2707 Airport and Airway Trust Fund Tax Reinstatement Act of 1997 4 Balanced Budget Act of 1997 251 Taxpayer Browsing Protection Act 1104 Taxpayer Relief Act of 1997 788 Lawsuits against terrorist states, jurisdiction 22 Museum and Library Services Technical and Conforming Amendments of 1997 2548 Omnibus Consolidated Appropriations Act, 1997 3 Tejeda, Frank, III 191 Tejeda, Marissa 191 Tejeda, Sonya 191 See Communications See Communications Chickasaw Trail Economic Development Compact 2669 Lawsuits against terrorist states, technical correction 22 Frank M. Tejeda Post Office Building, designation 10 Thomas, Charles L. 1759 See Claims See Commerce and Trade Foreign accidents 2681 Pilot employment records 2650 Airport and Airway Trust Fund Tax Reinstatement Act of 1997 4 Metropolitan Washington Airport 2204 Amtrak Reform and Accountability Act of 1997 2570 Aviation Insurance Reauthorization Act of 1997 2640 Department of Transportation and Related Agencies Appropriations Act, 1998 1425 Metropolitan Area Transit Regulation Compact 2686 Surface Transportation Extension Act of 1997 2552 United States Code, codification 2204 International Dolphin Conservation Program Act 1122 United States Trade Representative, appointment waiver 11 See Education University of Alaska Fairbanks 1572 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1998 2094 Benefit decision, revision 2271 National System, interment or memorialization prohibition 2381 State-owned, grant conditions 2382 Veterans’ Cemetery Act of 1997 2202 Department of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998 1344 Leslie Townes Hope, honorary veteran status 1452, 1920 Philippine Army, Scouts, and Guerilla Veterans of World War II Naturalization Act of 1997 2459 State-owned veterans cemeteries, grant conditions 2382 Veterans’ Benefits Act of 1997 2277 Veterans’ Compensation Rate Amendments of 1997 2155 Veterans Reconciliation Act of 1997 663 See Law Enforcement and Crime Vincent, Jean-Marie 2520 Library of Congress, national audiovisual conservation center, property acquisition 2667B13 Martin V.B. Bostetter, Jr. United States Courthouse, designation 2532 Metropolitan Area Transit Regulation Compact 2686 Charitable Donation Antitrust Immunity Act of 1997 241 Volunteer Protection Act of 1997 218 Oroville-Tonasket Claim Settlement and Conveyance Act 16 Energy and Water Development Appropriations Act, 1998 1320 Panama Canal Commission Authorization Act for Fiscal Year 1998 2062 Panama Canal Transition Facilitation Act of 1997 2062 Trinity Lake, CA, designation 1141 Balanced Budget Act of 1997 251 See National Wildlife Refuge System Office of Women’s Business Ownership, establishment 46 Woodriffe, Edwin R. 1172 Grand Teton National Park study, grazing use and open space 1537 See Children, Youth, and Families 3 UNITED STATES
STATUTES AT LARGE

CONTAINING THE

LAWS AND CONCURRENT RESOLUTIONS

ENACTED DURING THE FIRST SESSION OF THE

ONE HUNDRED FIFTH CONGRESS

OF THE UNITED STATES OF AMERICA

1997

AND

PROCLAMATIONS

Volume 111

IN THREE PARTS

Part 3

PUBLIC LAWS 105–89 THROUGH 105–153

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON: 1998

PUBLISHED BY AUTHORITY OF LAW UNDER THE DIRECTION OF THE ARCHIVIST OF THE UNITED STATES BY THE OFFICE OF THE FEDERAL REGISTER, NATIONAL ARCHIVES AND RECORDS ADMINISTRATION

 “The United States Statutes at Large shall be legal evidence of laws, concurrent resolutions, . . . proclamations by the President and proposed or ratified amendments to the Constitution of the United States therein contained, in all the courts of the United States, the several States, and the Territories and insular possessions of the United States.” (1 USC 112).

For sale by the

Superintendent of Documents

U.S. Government Printing Office

Washington, DC 20402-9328

(3-part set; sold in sets only)

 CONTENTS Page List of Bills Enacted Into Public Lawv List of Public Lawsvii List of Bills Enacted Into Private Lawxv List of Private Lawsxvii List of Concurrent Resolutionsxix List of Proclamationsxxi Public Laws 105–1 Through 105–353 Popular Name IndexA1 Subject IndexB1 List of Bills Enacted Into Public Lawv List of Public Lawsvii List of Bills Enacted Into Private Lawxv List of Private Lawsxvii List of Concurrent Resolutionsxix List of Proclamationsxxi Public Laws 105–36 Through 105–881107 Popular Name IndexA1 Subject IndexB1 List of Bills Enacted Into Public Lawv List of Public Lawsvii List of Bills Enacted Into Private Lawxv List of Private Lawsxvii List of Concurrent Resolutionsxix List of Proclamationsxxi Public Laws 105–89 Through 105–1532115 Private Laws2695 Concurrent Resolutions2703 Proclamation2773 Popular Name IndexA1 Subject IndexB1 LIST OF BILLS ENACTED INTO PUBLIC LAW THE ONE HUNDRED FIFTH CONGRESS OF THE UNITED STATES FIRST SESSION, 1997 BILL PUBLIC LAW H.R. 5 105–17 H.R. 63 105–44 H.R. 79 105–79 H.R. 111 105–49 H.R. 173 105–27 H.R. 282 105–87 H.R. 363 105–23 H.R. 394 105–59 H.R. 408 105–42 H.R. 412 105–9 H.R. 499 105–4 H.R. 514 105–7 H.R. 649 105–28 H.R. 668 105–2 H.R. 672 105–80 H.R. 680 105–50 H.R. 681 105–88 H.R. 708 105–81 H.R. 709 105–36 H.R. 785 105–10 H.R. 867 105–89 H.R. 924 105–6 H.R. 956 105–20 H.R. 968 105–15 H.R. 1001 105–13 H.R. 1003 105–12 H.R. 1057 105–90 H.R. 1058 105–91 H.R. 1086 105–102 H.R. 1090 105–111 H.R. 1119 105–85 H.R. 1198 105–39 H.R. 1225 105–11 H.R. 1226 105–35 H.R. 1254 105–131 H.R. 1306 105–24 H.R. 1377 105–92 H.R. 1420 105–57 H.R. 1479 105–93 H.R. 1484 105–94 H.R. 1493 105–141 H.R. 1553 105–25 H.R. 1585 105–41 H.R. 1604 105–143 H.R. 1650 105–16 H.R. 1658 105–146 H R. 1747 105–95 H.R. 1787 105–96 H.R. 1840 105–112 H.R. 1866 105–43 H.R. 1871 105–18 H.R. 1901 105–30 H.R. 1902 105–26 H.R. 1944 105–40 H.R. 1948 105–60 H.R. 2013 105–70 H.R. 2014 105–34 H.R. 2015 105–33 H.R, 2016 105–45 H.R. 2018 105–31 H.R. 2107 105–83 H.R. 2129 105–97 H.R. 2158 105–65 H.R. 2159 105–118 H.R, 2160 105–86 H.R. 2169 105–66 H.R. 2203 105–62 H.R. 2209 105–55 H.R. 2248 105–51 H.R. 2264 105–78 H.R. 2265 105–147 H.R. 2266 105–56 H.R. 2267 105–119 H.R. 2366 105–113 H.R. 2367 105–98 H.R. 2378 105–61 H.R. 2443 105–52 H.R. 2464 105–73 H.R. 2476 105–148 H.R. 2564 105–99 H.R. 2607 105–100 H.R. 2626 105–142 H.R. 2796 105–152 H.R. 2813 105–103 H.R. 2977 105–153 H.R. 2979 105–144 H.R. 3025 105–149 H.R. 3034 105–150 H.J. Res. 25 105–1 H.J. Res. 32 105–21 H.J. Res. 36 105–3 H.J. Res. 75 105–67 H.J. Res. 90 105–32 H.J. Res. 91 105–104 H.J. Res. 92 105–105 H.J. Res. 94 105–46 H.J. Res. 95 105–145 H.J. Res. 96 105–151 H.J. Res. 97 105–64 H.J. Res. 101 105–68 H.J. Res. 103 105–120 H.J. Res. 104 105–69 H.J. Res. 105 105–71 H.J. Res. 106 105–84 S. 156 105–132 S. 305 105–14 S. 342 105–22 S. 410 105–8 S. 430 105–37 S. 476 105–133 S. 543 105–19 S. 587 105–74 S. 588 105–75 S. 589 105–76 S. 591 105–77 S. 669 105–106 S. 670 105–38 S. 714 105–114 S. 738 105–134 S. 813 105–101 S. 819 105–122 S. 830 105–115 S. 833 105–123 S. 858 105–107 S. 871 105–58 S. 910 105–47 S. 923 105–116 S. 931 105–82 S. 996 105–53 S. 1000 105–63 S. 1026 105–121 S. 1139 105–135 S. 1161 105–136 S. 1193 105–137 S. 1198 105–54 S. 1211 105–48 S. 1227 105–72 S. 1228 105–124 S. 1231 105–108 S. 1258 105–117 S. 1347 105–109 S. 1354 105–125 S. 1377 105–110 S. 1378 105–126 S. 1417 105–127 S. 1505 105–128 S. 1507 105–129 S. 1519 105–130 S. 1559 105–138 S. 1565 105–139 S.J. Res. 5 105–5 S.J. Res. 29 105–29 S.J. Res. 39 105–140 LIST OF PUBLIC LAWS CONTAINED IN THIS VOLUME PUBLIC LAW PAGE 105–1 3 105–2 4 105–3 9 105–4 10 105–5 11 105–6 12 105–7 14 105–8 15 105–9 16 105–10 21 105–11 22 105–12 23 105–13 31 105–14 32 105–15 34 105–16 35 105–17 37 105–18 158 105–19 218 105–20 224 105–21 235 105–22 236 105–23 237 105–24 238 105–25 240 105–26 241 105–27 244 105–28 245 105–29 246 105–30 248 105–31 249 105–32 250 105–33 251 105–34 788 105–35 1104 105–36 1107 105–37 1113 105–38 1115 105–39 1116 105–40 1117 105–41 1119 105–42 1122 105–43 1140 105–44 1141 105–45 1142 105–46 1153 105–47 1159 105–48 1165 105–49 1166 105–50 1167 105–51 1170 105–52 1172 105–53 1173 105–54 1175 105–55 1177 105–56 1203 105–57 1252 105–58 1261 105–59 1268 105–60 1269 105–61 1272 105–62 1320 105–63 1342 105–64 1343 105–65 1344 105–66 1425 105–67 1452 105–68 1453 105–69 1454 105–70 1455 105–71 1456 105–72 1457 105–73 1459 105–74 1460 105–75 1462 105–76 1463 105–77 1465 105–78 1467 105–79 1527 105–80 1529 105–81 1537 105–82 1540 105–83 1543 105–84 1628 105–85 1629 105–86 2079 105–87 2113 105–88 2114 105–89 2115 105–90 2137 105–91 2138 105–92 2139 105–93 2146 105–94 2147 105–95 2148 105–96 2150 105–97 2154 105–98 2155 105–99 2159 105–100 2160 105–101 2202 105–102 2204 105–103 2218 105–104 2219 105–105 2233 105–106 2247 105–107 2248 105–108 2264 105–109 2268 105–110 2270 105–111 2271 105–112 2273 105–113 2274 105–114 2277 105–115 2296 105–116 2381 105–117 2384 105–118 2386 105–119 2440 105–120 2527 105–121 2528 105–122 2532 105–123 2533 105–124 2534 105–125 2540 105–126 2542 105–127 2543 105–128 2548 105–129 2551 105–130 2552 105–131 2562 105–132 2563 105–133 2568 105–134 2570 105–135 2592 105–136 2639 105–137 2640 105–138 2642 105–139 2644 105–140 2646 105–141 2647 105–142 2650 105–143 2652 105–144 2667 105–145 2669 105–146 2672 105–147 2678 105–148 2681 105–149 2684 105–150 2685 105–151 2686 105–152 2688 105–153 2689 LIST OF BILLS ENACTED INTO PRIVATE LAW THE ONE HUNDRED FIFTH CONGRESS OF THE UNITED STATES FIRST SESSION, 1997 BILL PRIVATE LAW H.R. 584 105–2 H.R. 2731 105–3 H.R. 2732 105–4 S. 768 105–1 LIST OF PRIVATE LAWS CONTAINED IN THIS VOLUME PRIVATE LAW PAGE 105–1 2695 105–2 2697 105–3 2698 105–4 2699 LIST OF CONCURRENT RESOLUTIONS CONTAINED IN THIS VOLUME CONCURRENT RESOLUTION PAGE S. Con. Res. 1 2703 S. Con. Res. 2 2703 S. Con. Res. 3 2703 H. Con. Res. 9 2704 H. Con. Res. 21 2704 S. Con. Res. 4 2705 S. Con. Res. 14 2706 H. Con. Res. 11 2706 H. Con. Res. 61 2706 H. Con. Res. 25 2707 H. Con. Res. 66 2708 H. Con. Res. 49 2709 S. Con. Res. 26 2709 H. Con. Res. 67 2710 H. Con. Res. 84 2710 H. Con. Res. 108 2760 H. Con. Res. 123 2761 H. Con. Res. 98 2761 H. Con. Res. 136 2762 H. Con. Res. 138 2763 S. Con. Res. 43 2763 H. Con. Res. 134 2764 H. Con. Res. 169 2764 H. Con. Res. 8 2765 S. Con. Res. 56 2766 H. Con. Res. 167 2766 S. Con. Res. 61 2766 S. Con. Res. 62 2767 S. Con. Res. 63 2767 H. Con. Res. 194 2768 S. Con. Res. 68 2768 S. Con. Res. 70 2769 LIST OF PROCLAMATIONS CONTAINED IN THIS VOLUME PROCLAMATION PAGE 6930 2773 6931 2774 6932 2775 6933 2776 6934 2777 6935 2778 6936 2780 6937 2781 6938 2782 6939 2783 6940 2784 6941 2785 6942 2786 6943 2792 6944 2793 6945 2794 6946 2795 6947 2796 6948 2798 6949 2809 6950 2810 6951 2812 6952 2812 6953 2813 6954 2814 6955 2815 6956 2820 6957 2821 6958 2822 6959 2823 6960 2825 6961 2826 6962 2833 6963 2837 6964 2838 6965 2840 6966 2841 6967 2842 6968 2843 6969 2844 6970 2857 6971 2858 6972 2860 6973 2861 6974 2862 6975 2863 6976 2864 6977 2865 6978 2866 6979 2867 6980 2868 6981 2870 6982 2871 6983 2883 6984 2884 6985 2885 6986 2886 6987 2887 6988 2888 6989 2891 6990 2893 6991 2894 6992 2895 6993 2896 6994 2897 6995 2898 6996 2899 6997 2900 6998 2902 6999 2903 7000 2903 7001 2905 7002 2905 7003 2907 7004 2908 7005 2909 7006 2910 7007 2911 7008 2922 7009 2923 7010 2925 7011 2926 7012 2961 7013 2963 7014 2963 7015 2964 7016 2966 7017 2969 7018 2970 7019 2971 7020 2972 7021 2974 7022 2976 7023 2977 7024 2978 7025 2979 7026 2981 7027 2982 7028 2983 7029 2984 7030 2986 7031 2989 7032 2988 7033 2989 7034 2991 7035 2992 7036 2993 7037 2994 7038 2995 7039 2996 7040 2997 7041 2998 7042 2999 7043 3000 7044 3001 7045 3003 7046 3004 7047 3005 7048 3006 7049 3007 7050 3008

PUBLIC LAWS

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 Public Law 105–89: To promote the adoption of children in foster care. Public Law89 Public Law 105–89 111 Stat. 2115 1997-11-19 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2115 Public Law105–89 105th Congress
An Act To promote the adoption of children in foster care.

Nov. 19, 1997

[H.R. 867]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Adoption and Safe Families Act of 1997.

42 USC 1305 note.
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.—This Act may be cited as the “Adoption and Safe Families Act of 1997”. (b) Table of Contents.—The table of contents of this Act is as follows: Sec. 1. TITLE I— Sec. 101. Sec. 102. Sec. 103. Sec. 104. Sec. 105. Sec. 106. Sec. 107. TITLE II— Sec. 201. Sec. 202. Sec. 203. TITLE III— Sec. 301. Sec. 302. Sec. 303. Sec. 304. Sec. 305. Sec. 306. Sec. 307. Sec. 308. TITLE IV— Sec. 401. Sec. 402. Sec. 403. Sec. 404. Sec. 405. Sec. 406. TITLE V— Sec. 501.
<num value="I">TITLE I—</num><heading>REASONABLE EFFORTS AND SAFETY REQUIREMENTS FOR FOSTER CARE AND ADOPTION PLACEMENTS</heading> <section> <num value="101">SEC. 101.</num> <heading>CLARIFICATION OF THE REASONABLE EFFORTS REQUIREMENT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 471(a)(15) of the Social Security Act (42 U.S.C. 671(a)(15)) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="15">“(15)</num> <chapeau>provides that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>in determining reasonable efforts to be made with respect to a child, as described in this paragraph, and in making such reasonable efforts, the child’s health and safety shall be the paramount concern;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <chapeau>except as provided in subparagraph (D), reasonable efforts shall be made to preserve and reunify families—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>prior to the placement of a child in foster care, to prevent or eliminate the need for removing the child from the child’s home; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>to make it possible for a child to safely return to the child’s home;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>if continuation of reasonable efforts of the type described in subparagraph (B) is determined to be inconsistent with the permanency plan for the child, reasonable efforts shall be made to place the child in a timely manner in accordance with the permanency plan, and to complete whatever steps are necessary to finalize the permanent placement of the child;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <chapeau>reasonable efforts of the type described in subparagraph (B) shall not be required to be made with respect to a parent of a child if a court of competent jurisdiction has determined that—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the parent has subjected the child to aggravated circumstances (as defined in State law, which definition may include but need not be limited to abandonment, torture, chronic abuse, and sexual abuse);</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <chapeau>the parent has—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>committed murder (which would have been an offense under section 1111(a) of title 18, United States Code, if the offense had occurred in the special maritime or territorial jurisdiction of the United States) of another child of the parent;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>committed voluntary manslaughter (which would have been an offense under section 1112(a) of title 18, United States Code, if the offense had occurred in the special maritime or territorial jurisdiction of the United States) of another child of the parent;</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>aided or abetted, attempted, conspired, or solicited to commit such a murder or such a voluntary manslaughter; or</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>committed a felony assault that results in serious bodily injury to the child or another child of the parent; or<page identifier="/us/stat/111/2117">111 STAT. 2117</page></content></subclause> </clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>the parental rights of the parent to a sibling have been terminated involuntarily;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <chapeau>if reasonable efforts of the type described in subparagraph (B) are not made with respect to a child as a result of a determination made by a court of competent jurisdiction in accordance with subparagraph (D)—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>a permanency hearing (as described in section 475(5)(C)) shall be held for the child within 30 days after the determination; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>reasonable efforts shall be made to place the child in a timely manner in accordance with the permanency plan, and to complete whatever steps are necessary to finalize the permanent placement of the child; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>reasonable efforts to place a child for adoption or with a legal guardian may be made concurrently with reasonable efforts of the type described in subparagraph (B);”.</content></subparagraph> </paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <content>Definition of Legal Guardianship.—Section 475 of such Act (42 U.S.C. 675) is amended by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <content>The term ‘legal guardianship’ means a judicially created relationship between child and caretaker which is intended to be permanent and self-sustaining as evidenced by the transfer to the caretaker of the following parental rights with respect to the child: protection, education, care and control of the person, custody of the person, and decisionmaking. The term ‘legal guardian’ means the caretaker in such a relationship.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>Section 472(a)(1) of such Act (42 U.S.C. 672(a)(1)) is amended by inserting “<quotedText>for a child</quotedText>” before “have been made”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <content>Rule of Construction.—Part E of title IV of such Act (42 U.S.C. 670–679) is amended by inserting after section 477 the following: <quotedContent> <section> <num value="478">“SEC. 478.</num> <heading>RULE OF CONSTRUCTION.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s678">42 USC 678</ref>.</p></sidenote> <content>“Nothing in this part shall be construed as precluding State courts from exercising their discretion to protect the health and safety of children in individual cases, including cases other than those described in section 471(a)(15)(D).”.</content> </section> </quotedContent> </content></subsection> </section> <section> <num value="102">SEC. 102.</num> <heading>INCLUDING SAFETY IN CASE PLAN AND CASE REVIEW SYSTEM REQUIREMENTS.</heading> <chapeau>Title IV of the Social Security Act (42 U.S.C. 601 et seq.) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in section 422(b)(10)(B)—<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s622s">42 USC 622</ref>.</p></sidenote></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in clause (iii)(I), by inserting “<quotedText>safe and</quotedText>” after “where”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in clause (iv), by inserting “<quotedText>safely</quotedText>” after “remain”; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>in section 475—<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s675">42 USC 675</ref>.</p></sidenote></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <chapeau>in paragraph (1)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>in subparagraph (A), by inserting “<quotedText>safety and</quotedText>” after “discussion of the”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <chapeau>in subparagraph (B)—</chapeau> <subclause class="indent4 fontsize10"><num value="I">(I)</num> <content>by inserting “<quotedText>safe and</quotedText>” after “child receives”; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">(II)</num> <content>by inserting “<quotedText>safe</quotedText>” after “return of the child to his own”; and<page identifier="/us/stat/111/2118">111 STAT. 2118</page></content></subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>in paragraph (5)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>in subparagraph (A), in the matter preceding clause (i), by inserting “<quotedText>a safe setting that is</quotedText>” after “placement in”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <chapeau>in subparagraph (B)—</chapeau> <subclause class="indent4 fontsize10"><num value="I">(I)</num> <content>by inserting “<quotedText>the safety of the child,</quotedText>” after “determine”; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">(II)</num> <content>by inserting “<quotedText>and safely maintained in</quotedText>” after “returned to”.</content></subclause> </clause> </subparagraph> </paragraph> </section> <section> <num value="103">SEC. 103.</num> <heading>STATES REQUIRED TO INITIATE OR JOIN PROCEEDINGS TO TERMINATE PARENTAL RIGHTS FOR CERTAIN CHILDREN IN FOSTER CARE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Requirement for Proceedings</inline>.—</heading><chapeau>Section 475(5) of the Social Security Act (42 U.S.C. 675(5)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>and</quotedText>” at the end of subparagraph (C);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking the period at the end of subparagraph (D) and inserting “<quotedText>; and</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <chapeau>in the case of a child who has been in foster care under the responsibility of the State for 15 of the most recent 22 months, or, if a court of competent jurisdiction has determined a child to be an abandoned infant (as defined under State law) or has made a determination that the parent has committed murder of another child of the parent, committed voluntary manslaughter of another child of the parent, aided or abetted, attempted, conspired, or solicited to commit such a murder or such a voluntary manslaughter, or committed a felony assault that has resulted in serious bodily injury to the child or to another child of the parent, the State shall file a petition to terminate the parental rights of the child’s parents (or, if such a petition has been filed by another party, seek to be joined as a party to the petition), and, concurrently, to identify, recruit, process, and approve a qualified family for an adoption, unless—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>at the option of the State, the child is being cared for by a relative;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>a State agency has documented in the case plan (which shall be available for court review) a compelling reason for determining that filing such a petition would not be in the best interests of the child; or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>the State has not provided to the family of the child, consistent with the time period in the State case plan, such services as the State deems necessary for the safe return of the child to the child’s home, if reasonable efforts of the type described in section 471(a)(15)(B)(ii) are required to be made with respect to the child.”.</content></clause> </subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Determination of Beginning of Foster Care</inline>.—</heading><chapeau>Section 475(5) of the Social Security Act (42 U.S.C. 675(5)), as amended by subsection (a), is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>and</quotedText>” at the end of subparagraph (D);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking the period at the end of subparagraph (E) and inserting “<quotedText>; and</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by adding at the end the following:<page identifier="/us/stat/111/2119">111 STAT. 2119</page> <quotedContent> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <chapeau>a child shall be considered to have entered foster care on the earlier of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the date of the first judicial finding that the child has been subjected to child abuse or neglect; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the date that is 60 days after the date on which the child is removed from the home.”.</content></clause> </subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Transition Rules</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s675">42 USC 675 note</ref>.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">New foster children</inline>.—</heading><chapeau>In the case of a child who enters foster care (within the meaning of section 475(5)(F) of the Social Security Act) under the responsibility of a State after the date of the enactment of this Act—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>if the State comes into compliance with the amendments made by subsection (a) of this section before the child has been in such foster care for 15 of the most recent 22 months, the State shall comply with section 475(5)(E) of the Social Security Act with respect to the child when the child has been in such foster care for 15 of the most recent 22 months; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>if the State comes into such compliance after the child has been in such foster care for 15 of the most recent 22 months, the State shall comply with such section 475(5)(E) with respect to the child not later than 3 months after the end of the first regular session of the State legislature that begins after such date of enactment.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Current foster children</inline>.—</heading><chapeau>In the case of children in foster care under the responsibility of the State on the date of the enactment of this Act, the State shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>not later than 6 months after the end of the first regular session of the State legislature that begins after such date of enactment, comply with section 475(5)(E) of the Social Security Act with respect to not less than ⅓ of such children as the State shall select, giving priority to children for whom the permanency plan (within the meaning of part E of title IV of the Social Security Act) is adoption and children who have been in foster care for the greatest length of time;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>not later than 12 months after the end of such first regular session, comply with such section 475(5)(E) with respect to not less than % of such children as the State shall select; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>not later than 18 months after the end of such first regular session, comply with such section 475(5)(E) with respect to all of such children.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Treatment of 2-year legislative sessions</inline>.—</heading><content>For purposes of this subsection, in the case of a State that has a 2-year legislative session, each year of the session is deemed to be a separate regular session of the State legislature.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <heading><inline class="smallCaps">Requirements treated as state plan requirements</inline>.—</heading><content>For purposes of part E of title IV of the Social Security Act, the requirements of this subsection shall be treated as State plan requirements imposed by section 471(a) of such Act.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <heading><inline class="smallCaps">Rule of Construction</inline>.—</heading><content>Nothing in this section or in<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s675">42 USC 675 note</ref>.</p></sidenote> part E of title IV of the Social Security Act (42 U.S.C. 670 et seq.), as amended by this Act, shall be construed as precluding State courts or State agencies from initiating the termination of <page identifier="/us/stat/111/2120">111 STAT. 2120</page>parental rights for reasons other than, or for timelines earlier than, those specified in part E of title IV of such Act, when such actions are determined to be in the best interests of the child, including cases where the child has experienced multiple foster care placements of varying durations.</content> </subsection> </section> <section> <num value="104">SEC. 104.</num> <heading>NOTICE OF REVIEWS AND HEARINGS; OPPORTUNITY TO BE HEARD.</heading> <chapeau>Section 475(5) of the Social Security Act (42 U.S.C. 675(5)), as amended by section 103, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>and</quotedText>” at the end of subparagraph (E);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking the period at the end of subparagraph (F) and inserting “<quotedText>; and</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <content>the foster parents (if any) of a child and any preadoptive parent or relative providing care for the child are provided with notice of, and an opportunity to be heard in, any review or hearing to be held with respect to the child, except that this subparagraph shall not be construed to require that any foster parent, preadoptive parent, or relative providing care for the child be made a party to such a review or nearing solely on the basis of such notice and opportunity to be heard.”.</content></subparagraph> </quotedContent> </content></paragraph> </section> <section> <num value="105">SEC. 105.</num> <heading>USE OF THE FEDERAL PARENT LOCATOR SERVICE FOR CHILD WELFARE SERVICES.</heading> <chapeau>Section 453 of the Social Security Act (42 U.S.C. 653) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in subsection (a)(2)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in the matter preceding subparagraph (A), by inserting “<quotedText>or making or enforcing child custody or visitation orders,</quotedText>” after “obligations,”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>in subparagraph (A)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by striking “<quotedText>or</quotedText>” at the end of clause (ii);</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking the comma at the end of clause (iii) and inserting “<quotedText>; or</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>by inserting after clause (iii) the following: <quotedContent> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>who has or may have parental rights with respect to a child,”; and</content></clause> </quotedContent> </content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <chapeau>in subsection (c)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking the period at the end of paragraph (3) and inserting “<quotedText>; and</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>a State agency that is administering a program operated under a State plan under subpart 1 of part B, or a State plan approved under subpart 2 of part B or under part E.”.</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> </section> <section> <num value="106">SEC. 106.</num> <heading>CRIMINAL RECORDS CHECKS FOR PROSPECTIVE FOSTER AND ADOPTIVE PARENTS.</heading> <chapeau>Section 471(a) of the Social Security Act (42 U.S.C. 671(a)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>and</quotedText>” at the end of paragraph (18);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking the period at the end of paragraph (19) and inserting “<quotedText>; and</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="20">“(20)</num><subparagraph class="inline"><num value="A">(A)</num> <chapeau>unless an election provided for in subparagraph (B) is made with respect to the State, provides procedures <page identifier="/us/stat/111/2121">111 STAT. 2121</page>for criminal records checks for any prospective foster or adoptive parent before the foster or adoptive parent may be finally approved for placement of a child on whose behalf foster care maintenance payments or adoption assistance payments are to be made under the State plan under this part, including procedures requiring that—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>in any case in which a record check reveals a felony conviction for child abuse or neglect, for spousal abuse, for a crime against children (including child pornography), or for a crime involving violence, including rape, sexual assault, or homicide, but not including other physical assault or battery, if a State finds that a court of competent jurisdiction has determined that the felony was committed at any time, such final approval shall not be granted; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>in any case in which a record check reveals a felony conviction for physical assault, battery, or a drug-related offense, if a State finds that a court of competent jurisdiction has determined that the felony was committed within the past 5 years, such final approval shall not be granted; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>subparagraph (A) shall not apply to a State plan if the Governor of the State has notified the Secretary in writing that the State has elected to make subparagraph (A) inapplicable to the State, or if the State legislature, by law, has elected to make subparagraph (A) inapplicable to the State.”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> </section> <section> <num value="107">SEC. 107.</num> <heading>DOCUMENTATION OF EFFORTS FOR ADOPTION OR LOCATION OF A PERMANENT HOME.</heading> <chapeau>Section 475(1) of the Social Security Act (42 U.S.C. 675(1)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>in the last sentence—</chapeau> <subparagraph class="indent2 fontsize10"><subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>the case plan must also include</quotedText>”; and</content></subparagraph></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by redesignating such sentence as subparagraph (D) and indenting appropriately; and</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>In the case of a child with respect to whom the permanency plan is adoption or placement in another permanent home, documentation of the steps the agency is taking to find an adoptive family or other permanent living arrangement for the child, to place the child with an adoptive family, a fit and willing relative, a legal guardian, or in another planned permanent living arrangement, and to finalize the adoption or legal guardianship. At a minimum, such documentation shall include child specific recruitment efforts such as the use of State, regional, and national adoption exchanges including electronic exchange systems.”.<page identifier="/us/stat/111/2122">111 STAT. 2122</page></content></subparagraph> </quotedContent> </content></paragraph> </section> <num value="II">TITLE II—</num><heading>INCENTIVES FOR PROVIDING PERMANENT FAMILIES FOR CHILDREN</heading> <section> <num value="201">SEC. 201.</num> <heading>ADOPTION INCENTIVE PAYMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Part E of title IV of the Social Security Act (42 U.S.C. 670–679) is amended by inserting after section 473 the following: <quotedContent> <section> <num value="473A">“SEC. 473A. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s673b">42 USC 673b</ref>.</p></sidenote><heading>ADOPTION INCENTIVE PAYMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Grant Authority</inline>.—</heading><content>Subject to the availability of such amounts as may be provided in advance in appropriations Acts for this purpose, the Secretary shall make a grant to each State that is an incentive-eligible State for a fiscal year in an amount equal to the adoption incentive payment payable to the State under this section for the fiscal year, which shall be payable in the immediately succeeding fiscal year.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b)</num> <heading><inline class="smallCaps">Incentive-Eligible State</inline>.—</heading><chapeau>A State is an incentive-eligible State for a fiscal year if—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>the State has a plan approved under this part for the fiscal year;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>the number of foster child adoptions in the State during the fiscal year exceeds the base number of foster child adoptions for the State for the fiscal year;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>the State is in compliance with subsection (c) for the fiscal year;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>in the case of fiscal years 2001 and 2002, the State provides health insurance coverage to any child with special needs (as determined under section 473(c)) for whom there is in effect an adoption assistance agreement between a State and an adoptive parent or parents; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>the fiscal year is any of fiscal years 1998 through 2002.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c)</num> <heading><inline class="smallCaps">Data Requirements</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>A State is in compliance with this subsection for a fiscal year if the State has provided to the Secretary the data described in paragraph (2)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>for fiscal years 1995 through 1997 (or, if the first fiscal year for which the State seeks a grant under this section is after fiscal year 1998, the fiscal year that precedes such first fiscal year); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>for each succeeding fiscal year that precedes the fiscal year.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Determination of numbers of adoptions</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">Determinations based on afcars data</inline>.—</heading><content>Except as provided in subparagraph (B), the Secretary shall determine the numbers of foster child adoptions and of special needs adoptions in a State during each of fiscal years 1995 through 2002, for purposes of this section, on the basis of data meeting the requirements of the system established pursuant to section 479, as reported by the State and approved by the Secretary by August 1 of the succeeding fiscal year.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Alternative data sources permitted for fiscal years 1995 through 1997</inline>.—</heading><content>For purposes of the determination described in subparagraph (A) for fiscal years 1995 through 1997, the Secretary may use data from a source <page identifier="/us/stat/111/2123">111 STAT. 2123</page>or sources other than that specified in subparagraph (A) that the Secretary finds to be of equivalent completeness and reliability, as reported by a State by November 30, 1997, and approved by the Secretary by March 1, 1998.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">No waiver of afcars requirements</inline>.—</heading><content>This section shall not be construed to alter or affect any requirement of section 479 or of any regulation prescribed under such section with respect to reporting of data by States, or to waive any penalty tor failure to comply with such a requirement.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d)</num> <heading><inline class="smallCaps">Adoption Incentive Payment </inline>—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Except as provided in paragraph (2), the adoption incentive payment payable to a State for a fiscal year under this section shall be equal to the sum of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>$4,000, multiplied by the amount (if any) by which the number of foster child adoptions in the State during the fiscal year exceeds the base number of foster child adoptions for the State for the fiscal year; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>$2,000, multiplied by the amount (if any) by which the number of special needs adoptions in the State during the fiscal year exceeds the base number of special needs adoptions for the State for the fiscal year.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <chapeau>Pro rata adjustment if insufficient funds available.—For any fiscal year, if the total amount of adoption incentive payments otherwise payable under this section for a fiscal year exceeds the amount appropriated pursuant to subsection (h) for the fiscal year, the amount of the adoption incentive payment payable to each State under this section for the fiscal year shall be—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>the amount of the adoption incentive payment that would otherwise be payable to the State under this section for the fiscal year; multiplied by</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the percentage represented by the amount so appropriated for the fiscal year, divided by the total amount of adoption incentive payments otherwise payable under this section for the fiscal year.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <heading><inline class="smallCaps">2-Year Availability of Incentive Payments</inline>.—</heading><content>Payments to a State under this section in a fiscal year shall remain available for use by the State through the end of the succeeding fiscal year.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f)</num> <heading><inline class="smallCaps">Limitations on Use of Incentive Payments</inline>.—</heading><content>A State shall not expend an amount paid to the State under this section except to provide to children or families any service (including post-adoption services) that may be provided under part B or E. Amounts expended by a State in accordance with the preceding sentence shall be disregarded in determining State expenditures for purposes of Federal matching payments under sections 423, 434, and 474.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g)</num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>As used in this section:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">Foster child adoption</inline>.—</heading><content>The term ‘foster child adoption’ means the final adoption of a child who, at the time of adoptive placement, was in foster care under the supervision of the State.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Special needs adoption</inline>.—</heading><content>The term ‘special needs adoption’ means the final adoption of a child for whom an adoption assistance agreement is in effect under section 473.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Base number of foster child adoptions</inline>.—</heading><chapeau>The term ‘base number of foster child adoptions for a State’ means—<page identifier="/us/stat/111/2124">111 STAT. 2124</page></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>with respect to fiscal year 1998, the average number of foster child adoptions in the State in fiscal years 1995, 1996, and 1997; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>with respect to any subsequent fiscal year, the number of foster child adoptions in the State in the fiscal year for which the number is the greatest in the period that begins with fiscal year 1997 and ends with the fiscal year preceding such subsequent fiscal year.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Base number of special needs adoptions</inline>.—</heading><chapeau>The term ‘base number of special needs adoptions for a State’ means—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>with respect to fiscal year 1998, the average number of special needs adoptions in the State in fiscal years 1995, 1996, and 1997; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>with respect to any subsequent fiscal year, the number of special needs adoptions in the State in the fiscal year for which the number is the greatest in the period that begins with fiscal year 1997 and ends with the fiscal year preceding such subsequent fiscal year.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">“(h)</num> <heading><inline class="smallCaps">Limitations on Authorization of Appropriations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>For grants under subsection (a), there are authorized to be appropriated to the Secretary $20,000,000 for each of fiscal years 1999 through 2003.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Availability</inline>.—</heading><content>Amounts appropriated under paragraph (1) are authorized to remain available until expended, but not after fiscal year 2003.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="i">“(i)</num> <heading><inline class="smallCaps">Technical Assistance</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary may, directly or through grants or contracts, provide technical assistance to assist States and local communities to reach their targets for increased numbers of adoptions and, to the extent that adoption is not possible, alternative permanent placements, for children in foster care.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Description of the character of the technical assistance</inline>.—</heading><chapeau>The technical assistance provided under paragraph (1) may support the goal of encouraging more adoptions out of the foster care system, when adoptions promote the best interests of children, and may include the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>The development of best practice guidelines for expediting termination of parental rights.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>Models to encourage the use of concurrent planning.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>The development of specialized units and expertise in moving children toward adoption as a permanency goal.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>The development of risk assessment tools to facilitate early identification of the children who will be at risk of harm if returned home.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num> <content>Models to encourage the fast tracking of children who have not attained 1 year of age into pre-adoptive placements.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F)</num> <content>Development of programs that place children into pre-adoptive families without waiting for termination of parental rights.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Targeting of technical assistance to the courts</inline>.—</heading><content>Not less than 50 percent of any amount appropriated pursuant to paragraph (4) shall be used to provide technical assistance to the courts.<page identifier="/us/stat/111/2125">111 STAT. 2125</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Limitations on authorization of appropriations</inline>.—</heading><content>To carry out this subsection, there are authorized to be appropriated to the Secretary of Health and Human Services not to exceed $10,000,000 for each of fiscal years 1998 through 2000”.</content></paragraph> </subsection> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Discretionary Cap Adjustment for Adoption Incentive Payments</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Section 251 amendment</inline>.—</heading><content>Section 251(b)(2) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901(b)(2)), as amended by section 10203(a)(4) of the Balanced Budget Act of 1997, is amended by adding at the Ante, p 698 end the following new subparagraph: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="G">“(G)</num> <heading><inline class="smallCaps">Adoption incentive payments</inline>.—</heading><chapeau>Whenever a bill or joint resolution making appropriations for fiscal year 1999, 2000, 2001, 2002, or 2003 is enacted that specifies an amount for adoption incentive payments pursuant to this part for the Department of Health and Human Services—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>the adjustments for new budget authority shall be the amounts of new budget authority provided in that measure for adoption incentive payments, but not to exceed $20,000,000; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>the adjustment for outlays shall be the additional outlays flowing from such amount.”.</content></clause> </subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Section 314 amendment</inline>.—</heading><chapeau>Section 314(b) of the Congressional Budget Act of 1974, as amended by section 10114(a) of the Balanced Budget Act of 1997, is amended—<sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 688.</p></sidenote></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>or</quotedText>” at the end of paragraph (4);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking the period at the end of paragraph (5) and inserting “<quotedText>; or</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>in the case of an amount for adoption incentive payments (as defined in section 251(b)(2)(G) of the Balanced Budget and Emergency Deficit Control Act of 1985) for fiscal year 1999, 2000, 2001, 2002, or 2003 for the Department of Health and Human Services, an amount not to exceed $20,000,000.”.</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> </subsection> </section> <section> <num value="202">SEC. 202.</num> <heading>ADOPTIONS ACROSS STATE AND COUNTY JURISDICTIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">State Plan for Child Welfare Services Requirement</inline>.—</heading><chapeau>Section 422(b) of the Social Security Act (42 U.S.C. 622(b)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in paragraph (10), by striking “<quotedText>and</quotedText>” at the end;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in paragraph (11), by striking the period and inserting “<quotedText>; and</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by adding at the end the following: <quotedContent> <num value="12">“(12)</num> <content>contain assurances that the State shall develop plans for the effective use of cross-jurisdictional resources to facilitate timely adoptive or permanent placements for waiting children.”,</content> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Condition of Assistance</inline>.—</heading><content>Section 474 of such Act (42 U.S.C. 674) is amended by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"> <num value="e">“(e)</num> <chapeau>Notwithstanding subsection (a), a State shall not be eligible for any payment under this section if the Secretary finds that, after the date of the enactment of this subsection, the State has—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>denied or delayed the placement of a child for adoption when an approved family is available outside of the jurisdiction with responsibility for handling the case of the child; or<page identifier="/us/stat/111/2126">111 STAT. 2126</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>failed to grant an opportunity for a fair hearing, as described in section 471(a)(12), to an individual whose allegation of a violation of paragraph (1) of this subsection is denied by the State or not acted upon by the State with reasonable promptness.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5111">42 USC 5111 note</ref>.</p></sidenote><heading><inline class="smallCaps">Study of Interjurisdictional Adoption Issues</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The Comptroller General of the United States shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>study and consider how to improve procedures and policies to facilitate the timely and permanent adoptions of children across State and county jurisdictions; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>examine, at a minimum, interjurisdictional adoption issues—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>concerning the recruitment of prospective adoptive families from other States and counties;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>concerning the procedures to grant reciprocity to prospective adoptive family home studies from other States and counties;</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>arising from a review of the comity and full faith and credit provided to adoption decrees and termination of parental rights orders from other States; and</content></clause> <clause class="indent3 fontsize10"><num value="iv">(iv)</num> <content>concerning the procedures related to the administration and implementation of the Interstate Compact on the Placement of Children.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Report to the congress</inline>.—</heading><chapeau>Not later than 1 year after the date of the enactment of this Act, the Comptroller General shall submit to the appropriate committees of the Congress a report that includes—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>the results of the study conducted under paragraph (1); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>recommendations on how to improve procedures to facilitate the interjurisdictional adoption of children, including interstate and intercounty adoptions, so that children will be assured timely and permanent placements.</content></subparagraph> </paragraph> </subsection> </section> <section> <num value="203">SEC. 203.</num> <heading>PERFORMANCE OF STATES IN PROTECTING CHILDREN.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Annual Report on State Performance</inline>.—</heading><content>Part E of title IV of the Social Security Act (42 U.S.C. 670 et seq.) is amended by adding at the end the following: <quotedContent> <section> <num value="479A">“SEC. 479A.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s679b">42 USC 679b</ref>.</p></sidenote> <heading>ANNUAL REPORT.</heading> <chapeau>“The Secretary, in consultation with Governors, State legislatures, State and local public officials responsible for administering child welfare programs, and child welfare advocates, shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <content>develop a set of outcome measures (including length of stay in foster care, number of foster care placements, and number of adoptions) that can be used to assess the performance of States in operating child protection and child welfare programs pursuant to parts B and E to ensure the safety of children;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <content>to the maximum extent possible, the outcome measures should be developed from data available from the Adoption and Foster Care Analysis and Reporting System;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <content>develop a system for rating the performance of States with respect to the outcome measures, and provide to the States an explanation of the rating system and how scores are determined under the rating system;<page identifier="/us/stat/111/2127">111 STAT. 2127</page></content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <content>prescribe such regulations as may be necessary to ensure that States provide to the Secretary the data necessary to determine State performance with respect to each outcome measure, as a condition of the State receiving funds under this part; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <content>on May 1, 1999, and annually thereafter, prepare and submit to the Congress a report on the performance of each State on each outcome measure, which shall examine the reasons for high performance and low performance and, where possible, make recommendations as to how State performance could be improved ”.</content></paragraph> </section> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Development of Performance-Based Incentive System</inline>.—</heading><content><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s679b">42 USC 679b note</ref>.</p></sidenote>The Secretary of Health and Human Services, in consultation with State and local public officials responsible for administering child welfare programs and child welfare advocates, shall study, develop, and recommend to Congress an incentive system to provide payments under parts B and E of title IV of the Social Security Act (42 U.S.C. 620 et seq., 670 et seq.) to any State based on the State’s performance under such a system. Such a system shall, to the extent the Secretary determines feasible and appropriate, be based on the annual report required by section 479A of the Social Security Act (as added by subsection (a) of this section) or on any proposed modifications of the annual report. Not later than 6 months after the date of the enactment of this Act, the Secretary shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a progress report on the feasibility, timetable, and consultation process for conducting such a study. Not later than 15 months after such date of enactment, the Secretary shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate the final report on a performance-based incentive system. The report may include other recommendations for restructuring the program and payments under parts B and E of title IV of the Social Security Act.</content> </subsection> </section> <num value="III">TITLE III—</num><heading>ADDITIONAL IMPROVEMENTS AND REFORMS</heading> <section> <num value="301">SEC. 301.</num> <heading>EXPANSION OF CHILD WELFARE DEMONSTRATION PROJECTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 1130(a) of the Social Security Act (42 U.S.C. 1320a–9) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"> <num value="a">“(a)</num> <heading><inline class="smallCaps">Authority To Approve Demonstration Projects</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary may authorize States to conduct demonstration projects pursuant to this section which the Secretary finds are likely to promote the objectives of part B or E of title IV.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num> <heading><inline class="smallCaps">Limitation</inline>.—</heading><content>The Secretary may authorize not more than 10 demonstration projects under paragraph (1) in each of fiscal years 1998 through 2002.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num> <heading><inline class="smallCaps">Certain types of proposals required to be considered</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>If an appropriate application therefor is submitted, the Secretary shall consider authorizing a demonstration project which is designed to identify and address barriers <page identifier="/us/stat/111/2128">111 STAT. 2128</page>that result in delays to adoptive placements for children in foster care.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>If an appropriate application therefor is submitted, the Secretary shall consider authorizing a demonstration project which is designed to identify and address parental substance abuse problems that endanger children and result in the placement of children in foster care, including through the placement of children with their parents in residential treatment facilities (including residential treatment facilities for post-partum depression) that are specifically designed to serve parents and children together in order to promote family reunification and that can ensure the health and safety of the children in such placements.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>If an appropriate application therefor is submitted, the Secretary shall consider authorizing a demonstration project which is designed to address kinship care.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4)</num> <heading><inline class="smallCaps">Limitation on eligibility</inline>.—</heading><content>The Secretary may not authorize a State to conduct a demonstration project under this section if the State fails to provide health insurance coverage to any child with special needs (as determined under section 473(c)) for whom there is in effect an adoption assistance agreement between a State and an adoptive parent or parents.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num> <heading><inline class="smallCaps">Requirement to consider effect of project on terms and conditions of certain court orders</inline>.—</heading><content>In considering an application to conduct a demonstration project under this section that has been submitted by a State in which there is in effect a court order determining that the State’s child welfare program has failed to comply with the provisions of part B or E of title IV, or with the Constitution of the United States, the Secretary shall take into consideration the effect of approving the proposed project on the terms and conditions of the court order related to the failure to comply.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320a–9">42 USC 1320a–9 note</ref>.</p></sidenote><heading><inline class="smallCaps">Rule of Construction</inline>.—</heading><content>Nothing in the amendment made by subsection (a) shall be construed as affecting the terms and conditions of any demonstration project approved under section 1130 of the Social Security Act (42 U.S.C. 1320a–9) before the date of the enactment of this Act.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Authority To Extend Duration of Demonstrations</inline>.—</heading><content>Section 1130(d) of such Act (42 U.S.C. 1320a–9(d)) is amended by inserting “<quotedText>, unless in the judgment of the Secretary, the demonstration project should be allowed to continue</quotedText>” before the period.</content> </subsection> </section> <section> <num value="302">SEC. 302.</num> <heading>PERMANENCY HEARINGS.</heading> <chapeau>Section 475(5)(C) of the Social Security Act (42 U.S.C. 675(5)(C)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>by striking “<quotedText>dispositional</quotedText>” and inserting “<quotedText>permanency</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>by striking “<quotedText>eighteen</quotedText>” and inserting “<quotedText>12</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by striking “<quotedText>original placement</quotedText>” and inserting “<quotedText>date the child is considered to have entered foster care (as determined under subparagraph (F))</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4)</num> <content>by striking “<quotedText>future status of</quotedText>” and all that follows through “long term basis)” and inserting “<quotedText>permanency plan for the child that includes whether, and if applicable when, the child will be returned to the parent, placed for adoption and the State will file a petition for termination of parental rights, or referred for legal guardianship, or (in cases where <page identifier="/us/stat/111/2129">111 STAT. 2129</page>the State agency has documented to the State court a compelling reason for determining that it would not be in the best interests of the child to return home, be referred for termination of parental rights, or be placed for adoption, with a fit and willing relative, or with a legal guardian) placed in another planned permanent living arrangement</quotedText>”.</content></paragraph> </section> <section> <num value="303">SEC. 303.</num> <heading>KINSHIP CARE.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5113">42 USC 5113 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Report</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The Secretary of Health and Human Services shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>not later than June 1, 1998, convene the advisory panel provided for in subsection (b)(1) and prepare and submit to the advisory panel an initial report on the extent to which children in foster care are placed in the care of a relative (in this section referred to as “kinship care”); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>not later than June 1, 1999, submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a final report on the matter described in subparagraph (A), which shall—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>be based on the comments submitted by the advisory panel pursuant to subsection (b)(2) and other information and considerations; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>include the policy recommendations of the Secretary with respect to the matter.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Required contents</inline>.—</heading><chapeau>Each report required by paragraph (1) shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <chapeau>include, to the extent available for each State, information on—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>the policy of the State regarding kinship care;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>the characteristics of the kinship care providers (including age, income, ethnicity, and race, and the relationship of the kinship care providers to the children);</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii)</num> <content>the characteristics of the household of such providers (such as number of other persons in the household and family composition);</content></clause> <clause class="indent3 fontsize10"><num value="iv">(iv)</num> <content>how much access to the child is afforded to the parent from whom the child has been removed;</content></clause> <clause class="indent3 fontsize10"><num value="v">(v)</num> <content>the cost of, and source of funds for, kinship care (including any subsidies such as medicaid and cash assistance);</content></clause> <clause class="indent3 fontsize10"><num value="vi">(vi)</num> <content>the permanency plan for the child and the actions being taken by the State to achieve the plan;</content></clause> <clause class="indent3 fontsize10"><num value="vii">(vii)</num> <content>the services being provided to the parent from whom the child has been removed; and</content></clause> <clause class="indent3 fontsize10"><num value="viii">(viii)</num> <content>the services being provided to the kinship care provider; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>specifically note the circumstances or conditions under which children enter kinship care.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Advisory Panel</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Establishment</inline>.—</heading><content>The Secretary of Health and Human Services, in consultation with the Chairman of the Committee on Ways and Means of the House of Representatives and the Chairman of the Committee on Finance of the Senate, shall convene an advisory panel which shall include parents, foster <page identifier="/us/stat/111/2130">111 STAT. 2130</page>parents, relative caregivers, former foster children, State and local public officials responsible for administering child welfare programs, private persons involved in the delivery of child welfare services, representatives of tribal governments and tribal courts, judges, and academic experts.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Duties</inline>.—</heading><content>The advisory panel convened pursuant to paragraph (1) shall review the report prepared pursuant to subsection (a), and, not later than October 1, 1998, submit to the Secretary comments on the report.</content></paragraph> </subsection> </section> <section> <num value="304">SEC. 304.</num> <heading>CLARIFICATION OF ELIGIBLE POPULATION FOR INDEPENDENT LIVING SERVICES.</heading> <content>Section 477(a)(2)(A) of the Social Security Act (42 U.S.C. 677(a)(2)(A)) is amended by inserting “<quotedText>(including children with respect to whom such payments are no longer being made because the child has accumulated assets, not to exceed $5,000, which are otherwise regarded as resources for purposes of determining eligibility for benefits under this part)</quotedText>” before the comma.</content> </section> <section> <num value="305">SEC. 305.</num> <heading>REAUTHORIZATION AND EXPANSION OF FAMILY PRESERVATION AND SUPPORT SERVICES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Reauthorization of Family Preservation and Support Services</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Section 430(b) of the Social Security Act (42 U.S.C. 629(b)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in paragraph (4), by striking “<quotedText>or</quotedText>” at the end;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in paragraph (5), by striking the period and inserting a semicolon; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num> <content>for fiscal year 1999, $275,000,000;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <content>for fiscal year 2000, $295,000,000; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <content>for fiscal year 2001, $305,000,000.”.</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Continuation of reservation of certain amounts</inline>.—</heading><content>Paragraphs (1) and (2) of section 430(d) of the Social Security Act (42 U.S.C. 629(d)(1) and (2)) are each amended by striking “<quotedText>and 1998</quotedText>” and inserting “<quotedText>1998, 1999, 2000, and 2001</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading><chapeau>Section 13712 of the Omnibus Budget Reconciliation Act of 1993 (42 U.S.C. 670 note) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>in subsection (c), by striking “<quotedText>1998</quotedText>” each place it appears and inserting “<quotedText>2001</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in subsection (d)(2), by striking “<quotedText>and 1998</quotedText>” and inserting “<quotedText>1998, 1999, 2000, and 2001</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Expansion for Time-Limited Family Reunification Services and Adoption Promotion and Support Services</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Additions to state plan</inline>.—</heading><chapeau>Section 432 of the Social Security Act (42 U.S.C. 629b) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <chapeau>in subsection (a)(—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>in paragraph (4), by striking “<quotedText>and community-based family support services</quotedText>” and inserting “<quotedText>, community-based family support services, time-limited family reunification services, and adoption promotion and support services,</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>in paragraph (5)(A), by striking “<quotedText>and community-based family support services</quotedText>” and inserting “<quotedText>, community-based family support services, time-limited family reunification services, and adoption promotion and support services</quotedText>”; and<page identifier="/us/stat/111/2131">111 STAT. 2131</page></content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>in subsection (b)(1), by striking “<quotedText>and family support</quotedText>” and inserting family support, time-limited family reunification, and adoption promotion and support”.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>Definitions of time-limited family reunification SERVICES AND ADOPTION PROMOTION AND SUPPORT SERVICES.— Section 431(a) of the Social Security Act (42 U.S.C. 629a(a)) is amended by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num> <heading><inline class="smallCaps">Time-limited family reunification services</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The term ‘time-limited family reunification services’ means the services and activities described in subparagraph (B) that are provided to a child that is removed from the child’s home and placed in a foster family home or a child care institution and to the parents or primary caregiver of such a child, in order to facilitate the reunification of the child safely and appropriately within a timely fashion, but only during the 15-month period that begins on the date that the child, pursuant to section 475(5)(F), is considered to have entered foster care.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <heading><inline class="smallCaps">Services and activities described</inline>.—</heading><chapeau>The services and activities described in this subparagraph are the following:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <content>Individual, group, and family counseling.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <content>Inpatient, residential, or outpatient substance abuse treatment services.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <content>Mental health services.</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <content>Assistance to address domestic violence.</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v)</num> <content>Services designed to provide temporary child care and therapeutic services for families, including crisis nurseries.</content></clause> <clause class="indent3 fontsize10"><num value="vi">“(vi)</num> <content>Transportation to or from any of the services and activities described in this subparagraph.</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8)</num> <heading><inline class="smallCaps">Adoption promotion and support services</inline>.—</heading><content>The term ‘adoption promotion and support services’ means services and activities designed to encourage more adoptions out of the foster care system, when adoptions promote the best interests of children, including such activities as pre- and post-adoptive services and activities designed to expedite the adoption process and support adoptive families.”.</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <heading><inline class="smallCaps">Additional conforming amendments</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <heading><inline class="smallCaps">Purposes</inline>.—</heading><content>Section 430(a) of the Social Security Act (42 U.S.C. 629(a)) is amended by striking “<quotedText>and community-based family support services</quotedText>” and inserting “<quotedText>, community-based family support services, time-limited family reunification services, and adoption promotion and support services</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <heading><inline class="smallCaps">Program title</inline>.—</heading><content>The heading of subpart 2 of part B of title IV of the Social Security Act (42 U.S.C. 629 et seq.) is amended to read as follows: <subpart> <num value="2">“Subpart 2—</num><heading>Promoting Safe and Stable Families”.</heading> </subpart> </content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Emphasizing the Safety of the Child</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <chapeau>Requiring assurances that the safety of children shall be of paramount concern.—Section 432(a) of the Social Security Act (42 U.S.C. 629b(a)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <content>by striking “<quotedText>and</quotedText>” at the end of paragraph (7);<page identifier="/us/stat/111/2132">111 STAT. 2132</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <content>by striking the period at the end of paragraph (8); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num> <content>by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="9">“(9)</num> <content>contains assurances that in administering and conducting service programs under the plan, the safety of the children to be served shall be of paramount concern.”.</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <heading><inline class="smallCaps">Definitions of family preservation and family support services</inline>.—</heading><chapeau>Section 431(a) of the Social Security Act (42 U.S.C. 629a(a)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num> <chapeau>in paragraph (1)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>in subparagraph (A), by inserting “<quotedText>safe and</quotedText>” before “appropriate” each place it appears; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>in subparagraph (B), by inserting “<quotedText>safely</quotedText>” after “remain”; and</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num> <chapeau>in paragraph (2)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i)</num> <content>by inserting “<quotedText>safety and</quotedText>” before “well-being”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii)</num> <content>by striking “<quotedText>stable</quotedText>” and inserting “<quotedText>safe, stable,</quotedText>”.</content></clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d)</num> <chapeau>Clarification of Maintenance of Effort Requirement.—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <heading><inline class="smallCaps">Definition of non-federal funds</inline>.—</heading><content>Section 431(a) of the Social Security Act (42 U.S.C. 629a(a)), as amended by subsection (b)(2), is amended by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="9">“(9)</num> <heading><inline class="smallCaps">Non-federal funds</inline>.—</heading><content>The term ‘non-Federal funds’ means State funds, or at the option of a State, State and local funds.”.</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s629a">42 USC 629a note</ref>.</p></sidenote> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendment made by paragraph (1) takes effect as if included in the enactment of section 13711 of the Omnibus Budget Reconciliation Act of 1993 (Public Law 103–33; 107 Stat. 649).</content></paragraph> </subsection> </section> <section> <num value="306">SEC. 306.</num> <heading>HEALTH INSURANCE COVERAGE FOR CHILDREN WITH SPECIAL NEEDS.</heading> <chapeau>Section 471(a) of the Social Security Act (42 U.S.C. 671(a)), as amended by section 106, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in paragraph (19), by striking “<quotedText>and</quotedText>” at the end;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in paragraph (20), by striking the period and inserting “<quotedText>; and</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="21">“(21)</num> <chapeau>provides for health insurance coverage (including, at State option, through the program under the State plan approved under title XIX) for any child who has been determined to be a child with special needs, for whom there is in effect an adoption assistance agreement (other than an agreement under this part) between the State and an adoptive parent or parents, and who the State has determined cannot be placed with an adoptive parent or parents without medical assistance because such child has special needs for medical, mental health, or rehabilitative care, and that with respect to the provision of such health insurance coverage—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A)</num> <content>such coverage may be provided through 1 or more State medical assistance programs;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num> <content>the State, in providing such coverage, shall ensure that the medical benefits, including mental health benefits, provided are of the same type and kind as those that would be provided for children by the State under title XIX;<page identifier="/us/stat/111/2133">111 STAT. 2133</page></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <content>in the event that the State provides such coverage through a State medical assistance program other than the program under title XIX, and the State exceeds its funding for services under such other program, any such child shall be deemed to be receiving aid or assistance under the State plan under this part for purposes of section 1902(a)(10)(A)(i)(I); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num> <content>in determining cost-sharing requirements, the State shall take into consideration the circumstances of the adopting parent or parents and the needs of the child being adopted consistent, to the extent coverage is provided through a State medical assistance program, with the rules under such program.”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> </section> <section> <num value="307">SEC. 307.</num> <heading>CONTINUATION OF ELIGIBILITY FOR ADOPTION ASSISTANCE PAYMENTS ON BEHALF OF CHILDREN WITH SPECIAL NEEDS WHOSE INITIAL ADOPTION HAS BEEN DISSOLVED.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Continuation of Eligibility</inline>.—</heading><content>Section 473(a)(2) of the Social Security Act (42 U.S.C. 673(a)(2)) is amended by adding at the end the following: “<quotedText>Any child who meets the requirements of subparagraph (C), who was determined eligible for adoption assistance payments under this part with respect to a prior adoption, who is available for adoption because the prior adoption has been dissolved and the parental rights of the adoptive parents have been terminated or because the child’s adoptive parents have died, and who fails to meet the requirements of subparagraphs (A) and (B) but would meet such requirements if the child were treated as if the child were in the same financial and other circumstances the child was in the last time the child was determined eligible for adoption assistance payments under this part and the prior adoption were treated as never having occurred, shall be treated as meeting the requirements of this paragraph for purposes of paragraph (1)(B)(ii).</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Applicability</inline>.—</heading><content>The amendment made by subsection (a)<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s673">42 USC 673 note</ref>.</p></sidenote> shall only apply to children who are adopted on or after October 1, 1997.</content> </subsection> </section> <section> <num value="308">SEC. 308.</num> <heading>STATE STANDARDS TO ENSURE QUALITY SERVICES FOR CHILDREN IN FOSTER CARE.</heading> <chapeau>Section 471(a) of the Social Security Act (42 U.S.C. 671(a)), as amended by sections 106 and 306, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>in paragraph (20), by striking “<quotedText>and</quotedText>” at the end;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>in paragraph (21), by striking the period and inserting and”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="22">“(22)</num> <content>provides that, not later than January 1, 1999, the State shall develop and implement standards to ensure that children in foster care placements in public or private agencies are provided quality services that protect the safety and health of the children”.</content></paragraph> </quotedContent> </content></paragraph> </section> <num value="IV">TITLE IV—</num><heading>MISCELLANEOUS</heading> <section> <num value="401">SEC. 401.</num> <heading>PRESERVATION OF REASONABLE PARENTING.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s671">42 USC 671 note</ref>.</p></sidenote> <content>Nothing in this Act is intended to disrupt the family unnecessarily or to intrude inappropriately into family life, to prohibit <page identifier="/us/stat/111/2134">111 STAT. 2134</page>the use of reasonable methods of parental discipline, or to prescribe a particular method of parenting.</content> </section> <section> <num value="402">SEC. 402.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s671">42 USC 671 note</ref>.</p></sidenote> <heading>REPORTING REQUIREMENTS.</heading> <content>Any information required to be reported under this Act shall be supplied to the Secretary of Health and Human Services through data meeting the requirements of the Adoption and Foster Care Analysis and Reporting System established pursuant to section 479 of the Social Security Act (42 U.S.C. 679), to the extent such data is available under that system. The Secretary shall make such modifications to regulations issued under section 479 of such Act with respect to the Adoption and Foster Care Analysis and Reporting System as may be necessary to allow States to obtain data that meets the requirements of such system in order to satisfy the reporting requirements of this Act.</content> </section> <section> <num value="403">SEC. 403.</num> <heading>SENSE OF CONGRESS REGARDING STANDBY GUARDIANSHIP.</heading> <chapeau>It is the sense of Congress that the States should have in effect laws and procedures that permit any parent who is chronically ill or near death, without surrendering parental rights, to designate a standby guardian for the parent’s minor children, whose authority would take effect upon—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1)</num> <content>the death of the parent;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num> <content>the mental incapacity of the parent; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num> <content>the physical debilitation and consent of the parent.</content></paragraph> </section> <section> <num value="404">SEC. 404.</num> <heading>TEMPORARY ADJUSTMENT OF CONTINGENCY FUND FOR STATE WELFARE PROGRAMS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">Reduction of Appropriation</inline>.—</heading><content>Section 403(b)(2) of the Social Security Act (42 U.S.C. 603(b)(2)) is amended by inserting “<quotedText>, reduced by the sum of the dollar amounts specified in paragraph (6)(C)(ii)</quotedText>” before the period.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Increase in State Remittances</inline>.—</heading><content>Section 403(b)(6) of such Act (42 U.S.C. 603(b)(6)) is amended by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C)</num> <heading><inline class="smallCaps">Adjustment of state remittances</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i)</num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The amount otherwise required by subparagraph (A) to be remitted by a State for a fiscal year shall be increased by the lesser of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the total adjustment for the fiscal year, multiplied by the adjustment percentage for the State for the fiscal year; or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the unadjusted net payment to the State for the fiscal year.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num> <heading><inline class="smallCaps">Total adjustment</inline>.—</heading><chapeau>As used in clause (i), the term ‘total adjustment’ means—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>in the case of fiscal year 1998, $2,000,000;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>in the case of fiscal year 1999, $9,000,000;</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III)</num> <content>in the case of fiscal year 2000, $16,000,000; and</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV)</num> <content>in the case of fiscal year 2001, $13,000,000.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="iii">“(iii)</num> <heading><inline class="smallCaps">Adjustment percentage</inline>.—</heading><chapeau>As used in clause (i), the term ‘adjustment percentage’ means, with respect to a State and a fiscal year—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the unadjusted net payment to the State for the fiscal year; divided by <page identifier="/us/stat/111/2135">111 STAT. 2135</page></content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the sum of the unadjusted net payments to all States for the fiscal year.</content></subclause> </clause> <clause class="indent3 fontsize10"><num value="iv">“(iv)</num> <heading><inline class="smallCaps">Unadjusted net payment</inline>.—</heading><chapeau>As used in this subparagraph, the term, ‘unadjusted net payment’ means with respect to a State and a fiscal year—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I)</num> <content>the total amount paid to the State under paragraph (3) in the fiscal year; minus</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II)</num> <content>the amount that, in the absence of this subparagraph, would be required by subparagraph (A) or by section 409(a)(10) to be remitted by the State in respect of the payment.”.</content></subclause> </clause> </subparagraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c)</num> <heading><inline class="smallCaps">Recommendations for Improving the Operation of the Contingency Fund</inline>.—</heading><content>Not later than March 1, 1998, the Secretary of Health and Human Services shall make recommendations to the Congress for improving the operation of the Contingency Fund for State Welfare Programs.</content> </subsection> </section> <section> <num value="405">SEC. 405.</num> <heading>COORDINATION OF SUBSTANCE ABUSE AND CHILD PROTECTION SERVICES.</heading><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s613">42 USC 613 note</ref>.</p></sidenote> <content>Within 1 year after the date of the enactment of this Act, the Secretary of Health and Human Services, based on information from the Substance Abuse and Mental Health Services Administration and the Administration for Children and Families in the Department of Health of Human Services, shall prepare and submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report which describes the extent and scope of the problem of substance abuse in the child welfare population, the types of services provided to such population, and the outcomes resulting from the provision of such services to such population. The report shall include recommendations for any legislation that may be needed to improve coordination in providing such services to such population.</content> </section> <section> <num value="406">SEC. 406.</num> <heading>PURCHASE OF AMERICAN-MADE EQUIPMENT AND PRODUCTS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s671">42 USC 671 note</ref>.</p></sidenote> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>It is the sense of the Congress that, to the greatest extent practicable, all equipment and products purchased with funds made available under this Act should be American-made.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Notice Requirement</inline>.—</heading><content>In providing financial assistance to, or entering into any contract with, any entity using funds made available under this Act, the head of each Federal agency, to the greatest extent practicable, shall provide to such entity a notice describing the statement made in subsection (a) by the Congress.<page identifier="/us/stat/111/2136">111 STAT. 2136</page></content> </subsection> </section> <num value="V">TITLE V—</num><heading>EFFECTIVE DATE</heading> <section> <num value="501">SEC. 501.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s622">42 USC 622 note</ref>.</p></sidenote> <heading>EFFECTIVE DATE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a)</num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Except as otherwise provided in this Act, the amendments made by this Act take effect on the date of enactment of this Act.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b)</num> <heading><inline class="smallCaps">Delay Permitted if State Legislation Required</inline>.—</heading><content>In the case of a State plan under part B or E of title IV of the Social Security Act which the Secretary of Health and Human Services determines requires State legislation (other than legislation appropriating funds) in order for the plan to meet the additional requirements imposed by the amendments made by this Act, the State plan shall not be regarded as failing to comply with the requirements of such part solely on the basis of the failure of the plan to meet such additional requirements before the first day of the first calendar quarter beginning after the close of the first regular session of the State legislature that begins after the date of enactment of this Act. For purposes of the previous sentence, in the case of a State that has a 2-year legislative session, each year of such session shall be deemed to be a separate regular session of the State legislature.</content> </subsection> </section> Approved November 19, 1997.
LEGISLATIVE HISTORY—H.R. 867: HOUSE REPORTS: No. 105–77 (Comm. on Ways and Means). CONGRESSIONAL RECORD, Vol. 143 (1997):

Apr. 30, considered and passed House.

Nov. 8, considered and passed Senate, amended.

Nov. 13. House concurred in Senate amendment with an amendment. Senate concurred in House amendment.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):

Nov. 19, Presidential remarks.

 Public Law 105–90: To designate the building in Indianapolis, Indiana, which houses the operations of the Indianapolis Main Post Office as the “Andrew Jacobs, Jr. Post Office Building”. Public Law90 Public Law 105–90 111 Stat. 2137 1997-11-19 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2137 Public Law105–90 105th Congress
An Act To designate the building in Indianapolis, Indiana, which houses the operations of the Indianapolis Main Post Office as the “Andrew Jacobs, Jr. Post Office Building”.

Nov. 19, 1997

[H.R. 1057]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. DESIGNATION. The building in Indianapolis, Indiana, which houses the operations of the Indianapolis Main Post Office shall be known and designated as the “Andrew Jacobs, Jr. Post Office Building”.
SEC. 2. REFERENCES. Any reference in a law, map, regulation, document, paper, or other record of the United States to the building referred to in section 1 shall be deemed to be a reference to the “Andrew Jacobs, Jr. Post Office Building”.
Approved November 19, 1997.
LEGISLATIVE HISTORY—H.R. 1057: CONGRESSIONAL RECORD, Vol. 143 (1997):

June 17, considered and passed House.

Nov. 9, considered and passed Senate.

 Public Law 105–91: To designate the facility of the United States Postal Service under construction at 150 West Margaret Drive in Terre Haute, Indiana, as the “John T. Myers Post Office Building”. Public Law91 Public Law 105–91 111 Stat. 2138 1997-11-19 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2138 Public Law105–91 105th Congress
An Act To designate the facility of the United States Postal Service under construction at 150 West Margaret Drive in Terre Haute, Indiana, as the “John T. Myers Post Office Building”.

Nov. 19, 1997

[H.R. 1058]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. DESIGNATION. The facility of the United States Postal Service under construction at 150 West Margaret Drive in Terre Haute, Indiana, shall be known and designated as the “John T. Myers Post Office Building”.
SEC. 2. REFERENCES. Any reference in a law, map, regulation, document, paper, or other record of the United States to the facility referred to in section 1 shall be deemed to be a reference to the “John T. Myers Post Office Building”.
Approved November 19, 1997.
LEGISLATIVE HISTORY—H.R. 1058: CONGRESSIONAL RECORD, Vol. 143 (1997):

June 17, considered and passed House.

Nov. 9, considered and passed Senate.

 Public Law 105–92: To amend title I of the Employee Retirement Income Security Act of 1974 to encourage retirement income savings. Public Law92 Public Law 105–92 111 Stat. 2139 1997-11-19 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2139 Public Law105–92 105th Congress
An Act To amend title I of the Employee Retirement Income Security Act of 1974 to encourage retirement income savings.

Nov. 19, 1997

[H.R. 1377]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Savings Are Vital to Everyone's Retirement Act of 1997.

29 USC 1001 note..
SECTION 1. SHORT TITLE. This Act may be cited as the “Savings Are Vital to Everyone’s Retirement Act of 1997”.
SEC. 2. FINDINGS AND PURPOSE.

29 USC 1146 note.

 (a) Findings.—The Congress finds as follows: (1) The impending retirement of the baby boom generation will severely strain our already overburdened entitlement system, necessitating increased reliance on pension and other personal savings. (2) Studies have found that less than a third of Americans have even tried to calculate how much they will need to have saved by retirement, and that less than 20 percent are very confident they will have enough money to live comfortably throughout their retirement. (3) A leading obstacle to expanding retirement savings is the simple fact that far too many Americans—particularly the young—are either unaware of, or without the knowledge and resources necessary to take advantage of, the extensive benefits offered by our retirement savings system. (b) Purpose.—It is the purpose of this Act— (1) to advance the public’s knowledge and understanding of retirement savings and its critical importance to the future well-being of American workers and their families; (2) to provide for a periodic, bipartisan national retirement savings summit in conjunction with the White House to elevate the issue of savings to national prominence; and (3) to initiate the development of a broad-based, public education program to encourage and enhance individual commitment to a personal retirement savings strategy.
SEC. 3. OUTREACH BY THE DEPARTMENT OF LABOR. (a) In General.—Part 5 of subtitle B of title I of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1131 et seq.) is amended by adding at the end the following new section: 111 STAT. 2140 “outreach to promote retirement income savings
“Sec. 516. (a)

29 USC 1146.

In General.—The Secretary shall maintain an ongoing program of outreach to the public designed to effectively promote retirement income savings by the public. “(b) Methods.—The Secretary shall carry out the requirements of subsection (a) by means which shall ensure effective communication to the public, including publication of public service announcements, public meetings, creation of educational materials, and establishment of a site on the Internet. “(c) Information To Be Made Available.—The information to be made available by the Secretary as part of the program of outreach required under subsection (a) shall include the following: “(1) a description of the vehicles currently available to individuals and employers for creating and maintaining retirement income savings, specifically including information explaining to employers, in simple terms, the characteristics and operation of the different retirement savings vehicles, including the steps to establish each such vehicle; and “(2) information regarding matters relevant to establishing retirement income savings, such as— “(A) the forms of retirement income savings; “(B) the concept of compound interest; “(C) the importance of commencing savings early in life; “(D) savings principles; “(E) the importance of prudence and diversification in investing; “(F) the importance of the timing of investments; and “(G) the impact on retirement savings of fife’s uncertainties, such as living beyond one’s life expectancy. “(d) Establishment of Site on the Internet.—The Secretary shall establish a permanent site on the Internet concerning retirement income savings. The site shall contain at least the following information: “(1) a means for individuals to calculate their estimated retirement savings needs, based on their retirement income goal as a percentage of their preretirement income; “(2) a description in simple terms of the common types of retirement income savings arrangements available to both individuals and employers (specifically including small employers), including information on the amount of money that can be placed into a given vehicle, the tax treatment of the money, the amount of accumulation possible through different typical investment options and interest rate projections, and a directory of resources of more descriptive information; “(3) materials explaining to employers in simple terms, the characteristics and operation of the different retirement savings arrangements for their workers and what the basic legal requirements are under this Act and the Internal Revenue Code of 1986, including the steps to establish each such arrangement; “(4) copies of all educational materials developed by the Department of Labor, and by other Federal agencies in consultation with such Department, to promote retirement income savings by workers and employers; and 111 STAT. 2141 “(5) links to other sites maintained on the Internet by governmental agencies and nonprofit organizations that provide additional detail on retirement income savings arrangements and related topics on savings or investing. “(e) Coordination.—The Secretary shall coordinate the outreach program under this section with similar efforts undertaken by other public and private entities.”.
(b) Conforming Amendment.—The table of contents in section 1 of such Act is amended by inserting after the item relating to section 514 the following new items: “Sec. 515. “Sec. 516.
SEC. 4. NATIONAL SUMMIT ON RETIREMENT SAVINGS. (a) In General.—Part 5 of subtitle B of title I of the Employee Retirement Income Security Act of 1974, as amended by section 3 of this Act, is amended by adding at the end the following new section: “national summit on retirement savings
“Sec. 517. (a) Authority To Call Summit.—Not later than

President.

29 USC 1147.

 July 15, 1998, the President shall convene a National Summit on Retirement Income Savings at the White House, to be co-hosted by the President and the Speaker and the Minority Leader of the House of Representatives and the Majority Leader and Minority Leader of the Senate. Such a National Summit shall be convened thereafter in 2001 and 2005 on or after September 1 of each year involved. Such a National Summit shall— “(1) advance the public’s knowledge and understanding of retirement savings and its critical importance to the future well-being of American workers and their families; “(2) facilitate the development of a broad-based, public education program to encourage and enhance individual commitment to a personal retirement savings strategy; “(3) develop recommendations for additional research, reforms, and actions in the field of private pensions and individual retirement savings; and “(4) disseminate the report of, and information obtained by, the National Summit and exhibit materials and works of the National Summit. “(b) Planning and direction.—The National Summit shall be planned and conducted under the direction of the Secretary, in consultation with, and with the assistance of, the heads of such other Federal departments and agencies as the President may designate. Such assistance may include the assignment of personnel. The Secretary shall, in planning and conducting the National Summit, consult with the congressional leaders specified in subsection (e)(2). The Secretary shall also, in carrying out the Secretary’s duties under this subsection, consult and coordinate with at least one organization made up of private sector businesses and associations partnered with Government entities to promote long-term financial security in retirement through savings. “(c) Purpose of National Summit.—The purpose of the National Summit shall be— “(1) to increase the public awareness of the value of personal savings for retirement; 111 STAT. 2142 “(2) to advance the public’s knowledge and understanding of retirement savings and its critical importance to the future well-being of American workers and their families; “(3) to facilitate the development of a broad-based, public education program to encourage and enhance individual commitment to a personal retirement savings strategy; “(4) to identify the problems workers have in setting aside adequate savings for retirement; “(5) to identify the barriers which employers, especially small employers, face in assisting their workers in accumulating retirement savings; “(6) to examine the impact and effectiveness of individual employers to promote personal savings for retirement among their workers and to promote participation in company savings options; “(7) to examine the impact and effectiveness of government programs at the Federal, State, and local levels to educate the public about, and to encourage, retirement income savings; “(8) to develop such specific and comprehensive recommendations for the legislative and executive branches of the Government and for private sector action as may be appropriate for promoting private pensions and individual retirement savings; and “(9) to develop recommendations for the coordination of Federal, State, and local retirement income savings initiatives among the Federal, State, and local levels of government and for the coordination of such initiatives. “(d) Scope of National Summit.—The scope of the National Summit shall consist of issues relating to individual and employer-based retirement savings and shall not include issues relating to the old-age, survivors, and disability insurance program under title II of the Social Security Act. “(e) National Summit Participants.— “(1) In general.—To carry out the purposes of the National Summit, the National Summit shall bring together— “(A) professionals and other individuals working in the fields of employee benefits and retirement savings; “(B) Members of Congress and officials in the executive branch; “(C) representatives of State and local governments; “(D) representatives of private sector institutions, including individual employers, concerned about promoting the issue of retirement savings and facilitating savings among American workers; and “(E) representatives of the general public. “(2) Statutorily required participation.—The participants in the National Summit shall include the following individuals or their designees: “(A) the Speaker and the Minority Leader of the House of Representatives; “(B) the Majority Leader and the Minority Leader of the Senate; “(C) the Chairman and ranking Member of the Committee on Education and the Workforce of the House of Representatives; “(D) the Chairman and ranking Member of the Committee on Labor and Human Resources of the Senate; 111 STAT. 2143 “(E) the Chairman and ranking Member of the Special Committee on Aging of the Senate; “(F) the Chairman and ranking Member of the Subcommittees on Labor, Health and Human Services, and Education of the Senate and House of Representatives; and “(G) the parties referred to in subsection (b). “(3) Additional participants.— “(A) In general.—There shall be not more than 200 additional participants. Of such additional participants— “(i) one-half shall be appointed by the President, in consultation with the elected leaders of the President’s party in Congress (either the Speaker of the House of Representatives or the Minority Leader of the House of Representatives, and either the Majority Leader or the Minority Leader of the Senate; and “(ii) one-half shall be appointed by the elected leaders of Congress of the party to which the President does not belong (one-half of that allotment to be appointed by either the Speaker of the House of Representatives or the Minority Leader of the House of Representatives, and one-half of that allotment to be appointed by either the Majority Leader or the Minority Leader of the Senate). “(B) Appointment requirements.—The additional participants described in subparagraph (A) shall be— “(i) appointed not later than January 31, 1998; “(ii) selected without regard to political affiliation or past partisan activity; and “(iii) representative of the diversity of thought in the fields of employee benefits and retirement income savings. “(4) Presiding officers.—The National Summit shall be {iresided over equally by representatives of the executive and legislative branches. “(f) National Summit Administration.— “(1) Administration.—In administering this section, the Secretary shall— “(A) request the cooperation and assistance of such other Federal departments and agencies and other parties referred to in subsection (b) as may be appropriate in the carrying out of this section; “(B) furnish all reasonable assistance to State agencies, area agencies, and other appropriate organizations to enable them to organize and conduct conferences in conjunction with the National Summit; “(C) make available for public comment a proposed

Public information.

 Public agenda for the National Summit that reflects to the great- information, est extent possible the purposes for the National Summit set out in this section; “(D) prepare and make available background materials for the use of participants in the National Summit that the Secretary considers necessary; and “(E) appoint and fix the pay of such additional personnel as may be necessary to carry out the provisions of this section without regard to provisions of title 5, United States Code, governing appointments in the competitive 111 STAT. 2144 service, and without regard to chapter 51 and subchapter III of chapter 53 of such title relating to classification and General Schedule pay rates. “(2) Duties.—The Secretary shall, in carrying out the responsibilities and functions of the Secretary under this section, and as part of the National Summit, ensure that— “(A) the National Summit shall be conducted in a manner that ensures broad participation of Federal, State, and local agencies and private organizations, professionals, and others involved in retirement income savings and provides a strong basis for assistance to be provided under paragraph (1)(B); “(B)

Federal Register, publication.

the agenda prepared under paragraph (1)(C) for the National Summit is published in the Federal Register; and “(C) the personnel appointed under paragraph (1)(E) shall be fairly balanced in terms of points of views represented and shall be appointed without regard to political affiliation or previous partisan activities. “(3) Nonapplication of faca.—The provisions of the Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the National Summit. “(g) Report.—The Secretary shall prepare a report describing the activities of the National Summit and shall submit the report to the President, the Speaker and Minority Leader of the House of Representatives, the Majority and Minority Leaders of the Senate, and the chief executive officers of the States not later than 90 days after the date on which the National Summit is adjourned. “(h) Definition.—For purposes of this section, the term ‘State’ means a State, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, Guam, the Virgin Islands, American Samoa, and any other territory or possession of the United States. “(i) Authorization of Appropriations.— “(1) In general.—There is authorized to be appropriated for fiscal years beginning on or after October 1, 1997, such sums as are necessary to carry out this section. “(2) Authorization to accept private contributions.—In order to facilitate the National Summit as a public-private partnership, the Secretary may accept private contributions, in the form of money, supplies, or services, to defray the costs of the National Summit. “(j) Financial Obligation for Fiscal Year 1998.—The financial obligation for the Department of Labor for fiscal year 1998 shall not exceed the lesser of— “(1) one-half of the costs of the National Summit; or “(2) $250,000. The private sector organization described in subsection (b) and contracted with by the Secretary shall be obligated for the balance of the cost of the National Summit. “(k) Contracts.—The Secretary may enter into contracts to carry out the Secretary’s responsibilities under this section. The Secretary shall enter into a contract on a sole-source basis to ensure the timely completion of the National Summit in fiscal year 1998.”.
111 STAT. 2145 (b) Conforming Amendment.—The table of contents in section 1 of such Act, as amended by section 3 of this Act, is amended by inserting after the item relating to section 516 the following new item: “Sec. 517.
Approved November 19, 1997.
LEGISLATIVE HISTORY—H.R. 1377: HOUSE REPORTS: No. 105–104 (Comm. on Education and the Workforce). CONGRESSIONAL RECORD, Vol. 143 (1997):

May 21, considered and passed House.

Nov. 7, considered and passed Senate, amended.

Nov. 9, House concurred in Senate amendment.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):

Nov. 19, Presidential statement.

 Public Law 105–93: To designate the Federal building and United States courthouse located at 300 Northeast First Avenue in Miami, Florida, as the “David W. Dyer Federal Building and United States Courthouse”. Public Law93 Public Law 105–93 111 Stat. 2146 1997-11-19 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2146 Public Law105–93 105th Congress
An Act To designate the Federal building and United States courthouse located at 300 Northeast First Avenue in Miami, Florida, as the “David W. Dyer Federal Building and United States Courthouse”.

Nov. 19, 1997

[H.R. 1479]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. DESIGNATION. The Federal building and United States courthouse located at 300 Northeast First Avenue in Miami, Florida, shall be known and designated as the “David W. Dyer Federal Building and United States Courthouse”.
SEC. 2. REFERENCES. Any reference in a law, map, regulation, document, paper, or other record of the United States to the Federal building referred to in section 1 shall be deemed to be a reference to the “David W. Dyer Federal Building and United States Courthouse”.
Approved November 19, 1997.
LEGISLATIVE HISTORY—H.R. 1479 (S. 681): HOUSE REPORTS: No. 105–227 (Comm. on Transportation and Infrastructure). CONGRESSIONAL RECORD, Vol. 143 (1997):

Oct. 28, 29, considered and passed House.

Nov. 9, considered and passed Senate.

 Public Law 105–94: To redesignate the United States courthouse located at 100 Franklin Street in Dublin, Georgia, as the “J. Roy Rowland United States Courthouse”. Public Law94 Public Law 105–94 111 Stat. 2147 1997-11-19 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2147 Public Law105–94 105th Congress
An Act To redesignate the United States courthouse located at 100 Franklin Street in Dublin, Georgia, as the “J. Roy Rowland United States Courthouse”.

Nov. 19, 1997

[H.R. 1484]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. REDESIGNATION. The United States courthouse located at 100 Franklin Street in Dublin, Georgia, and known as the Dublin Federal Courthouse, shall be known and designated as the “J. Roy Rowland United States Courthouse”.
SEC. 2. REFERENCES. Any reference in a law, map, regulation, document, paper, or other record of the United States to the United States courthouse referred to in section 1 shall be deemed to be a reference to the “J. Roy Rowland United States Courthouse”.
Approved November 19, 1997.
LEGISLATIVE HISTORY—H.R. 1484 (S. 715): HOUSE REPORTS: No. 105–226 (Comm. on Transportation and Infrastructure). CONGRESSIONAL RECORD, Vol. 143 (1997):

Oct. 28, 29, considered and passed House.

Nov. 9, considered and passed Senate.

 Public Law 105–95: To amend the John F. Kennedy Center Act to authorize the design and construction of additions to the parking garage and certain site improvements, and for other purposes. Public Law95 Public Law 105–95 111 Stat. 2148 1997-11-19 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2148 Public Law105–95 105th Congress
An Act To amend the John F. Kennedy Center Act to authorize the design and construction of additions to the parking garage and certain site improvements, and for other purposes.

Nov. 19, 1997

[H.R. 1747]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

John F. Kennedy Center Parking Improvement Act of 1997.
SECTION 1. SHORT TITLE.

20 USC 76h note.

This Act may be cited as the “John F. Kennedy Center Parking Improvement Act of 1997”.
SEC. 2. PARKING GARAGE ADDITIONS AND SITE IMPROVEMENTS. Section 3 of the John F. Kennedy Center Act (20 U.S.C. 76i) is amended— (1) by striking the section heading and all that follows through “The Board” and inserting the following:
“SEC. 3. JOHN F. KENNEDY CENTER FOR THE PERFORMING ARTS. “(a) In General.—The Board”; and
(2) by adding at the end the following: “(b) Parking Garage Additions and Site Improvements.— “(1) In general.—Substantially in accordance with the plan entitled ‘Site Master Plan—Drawing Number 1997–2 April 29, 1997,’ and map number NCR 844/82571, the Board may design and construct— “(A) an addition to the parking garage at each of the north and south ends of the John F. Kennedy Center for the Performing Arts; and “(B) site improvements and modifications. “(2) Availability.—The plan shall be on file and available for public inspection in the office of the Secretary of the Center. “(3) Limitation on use of appropriated funds.—No appropriated funds may be used to pay the costs (including the repayment of obligations incurred to finance costs) of— “(A) the design and construction of an addition to the parking garage authorized under paragraph (1)(A); “(B) the design and construction of site improvements and modifications authorized under paragraph (1)(B) that the Board specifically designates will be financed using sources other than appropriated funds; or “(C) any project to acquire large screen format equipment for an interpretive theater, or to produce an interpretive film, that the Board specifically designates will be financed using sources other than appropriated funds.”.
111 STAT. 2149
SEC. 3. PEDESTRIAN AND VEHICULAR ACCESS. (a) Duties of the Board.—Section 4(a)(1) of the John F. Kennedy Center Act (20 U.S.C. 76j(a)(D) is amended— (1) by striking “and” at the end of subparagraph (G); (2) by striking the period at the end of subparagraph (H) and inserting and”; and (3) by adding at the end the following: “(I) ensure that safe and convenient access to the site of the John F. Kennedy Center for the Performing Arts is provided for pedestrians and vehicles.”. (b) Powers of the Board.—Section 5 of such Act (20 U.S.C. 76k) is amended by adding at the end the following: “(g) Pedestrian and Vehicular Access.—Subject to approval of the Secretary of the Interior under section 4(a)(2)(F), the Board shall develop plans and carry out projects to improve pedestrian and vehicular access to the John F. Kennedy Center for the Performing Arts.”.
SEC. 4. DEFINITION OF BUILDING AND SITE. Section 13 of the John F. Kennedy Center Act (20 U.S.C. 76s) and section 9(3) of the Act of October 24, 1951 (40 U.S.C. 193v), are each amended by inserting after “numbered 844/82563, and dated April 20, 1994” the following: “(as amended by the map entitled Transfer of John F. Kennedy Center for the Performing Arts’, numbered 844/82563A and dated May 22, 1997)”.
Approved November 19, 1997.
LEGISLATIVE HISTORY—H.R. 1747 (S. 797): HOUSE REPORTS: No. 105–130 (Comm. on Transportation and Infrastructure). SENATE REPORTS: No. 105–30 accompanying S. 797 (Comm. on Environment and Public Works). CONGRESSIONAL RECORD, Vol. 143 (1997):

June 17, considered and passed House.

Nov. 7, considered and passed Senate.

 Public Law 105–96: To assist in the conservation of Asian elephants by supporting and providing financial resources for the conservation programs of nations within the range of Asian elephants and projects of persons with demonstrated expertise in the conservation of Asian elephants. Public Law96 Public Law 105–96 111 Stat. 2150 1997-11-19 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2150 Public Law105–96 105th Congress
An Act To assist in the conservation of Asian elephants by supporting and providing financial resources for the conservation programs of nations within the range of Asian elephants and projects of persons with demonstrated expertise in the conservation of Asian elephants.

Nov. 19, 1997

[H.R. 1787]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Asian Elephant Conservation Act of 1997.

16 USC 4261 note.
SECTION 1. SHORT TITLE. This Act may be cited as the “Asian Elephant Conservation Act of 1997”.
SEC. 2.

16 USC 4261.

FINDINGS. The Congress finds the following: (1) Asian elephant populations in nations within the range of Asian elephants have continued to decline to the point that the long-term survival of the species in the wild is in serious jeopardy. (2) The Asian elephant is listed as an endangered species under section 4 of the Endangered Species Act of 1973 and under appendix I of the Convention on International Trade of Endangered Species of Wild Fauna and Flora. (3) Because the challenges facing the conservation of Asian elephants are so great, resources to date have not been sufficient to cope with the continued loss of habitat and the consequent diminution of Asian elephant populations. (4) The Asian elephant is a flagship species for the conservation of tropical forest habitats in which it is found and provides the consequent benefit from such conservation to numerous other species of wildlife including many other endangered species. (5) Among the threats to the Asian elephant in addition to habitat loss are population fragmentation, human-elephant conflict, poaching for ivory, meat, hide, bones and teeth, and capture for domestication. (6) To reduce, remove, or otherwise effectively address these threats to the long-term viability of populations of Asian elephants in the wild will require the joint commitment and effort of nations within the range of Asian elephants, the United States and other countries, and the private sector.
SEC. 3.

16 USC 4262.

PURPOSES. The purposes of this Act are the following:
(1) To perpetuate healthy populations of Asian elephants. 111 STAT. 2151 (2) To assist in the conservation and protection of Asian elephants by supporting the conservation programs of Asian elephant range states and the CITES Secretariat. (3) To provide financial resources for those programs.
SEC. 4. DEFINITIONS.

16 USC 4263.

 In this Act: (1) The term “CITES” means the Convention on International Trade in Endangered Species of Wild Fauna and Flora, signed on March 3, 1973, and its appendices. (2) The term “conservation” means the use of methods and procedures necessary to bring Asian elephants to the point at which there are sufficient populations in the wild to ensure that the species does not become extinct, including all activities associated with scientific resource management, such as conservation, protection, restoration, acquisition, and management of habitat; research and monitoring of known populations; assistance in the development of management plans for managed elephant ranges; CITES enforcement; law enforcement through community participation; translocation of elephants; conflict resolution initiatives; and community outreach and education. (3) The term “Fund” means the Asian Elephant Conservation Fund established under section 6(a). (4) The term “Secretary” means the Secretary of the Interior. (5) The term “Administrator” means the Administrator of the Agency for International Development.
SEC. 5. ASIAN ELEPHANT CONSERVATION ASSISTANCE.

16 USC 4264.

 (a) In General.—The Secretary, subject to the availability of funds and in consultation with the Administrator, shall use amounts in the Fund to provide financial assistance for projects for the conservation of Asian elephants for which final project proposals are approved by the Secretary in accordance with this section. (b) Project Proposal.—Any relevant wildlife management authority of a nation within the range of Asian elephants whose activities directly or indirectly affect Asian elephant populations, the CITES Secretariat, or any person with demonstrated expertise in the conservation of Asian elephants, may submit to the Secretary a project proposal under this section. Each proposal shall include the following: (1) The name of the individual responsible for conducting the project. (2) A succinct statement of the purposes of the project. (3) A description of the qualifications of the individuals who will conduct the project. (4) An estimate of the funds and time required to complete the project. (5) Evidence of support of the project by appropriate governmental entities of countries in which the project will be conducted, if the Secretary determines that the support is required for the success of the project. (6) Information regarding the source and amount of matching funding available to the applicant. 111 STAT. 2152 (7) Any other information the Secretary considers to be necessary for evaluating the eligibility of the project for funding under this Act. (c) Project Review and Approval.— (1) In general.—Within 30 days after receiving a final project proposal, the Secretary shall provide a copy of the Kosai to the Administrator. The Secretary shall review each project proposal to determine if it meets the criteria set forth m subsection (d). (2) Consultation; approval or disapproval.—Not later than 6 months after receiving a final project proposal, and subject to the availability of funds, the Secretary, after consulting with the Administrator, shall— (A) request written comments on the proposal from each country within which the project is to be conducted; (B) after requesting those comments, approve or disapprove the proposal; and (C) provide written notification of that approval or disapproval to the person who submitted the proposal, the Administrator, and each of those countries. (d) Criteria for Approval.—The Secretary may approve a final project proposal under this section if the project will enhance programs for conservation of Asian elephants by assisting efforts to— (1) implement conservation programs; (2) address the conflicts between humans and elephants that arise from competition for the same habitat; (3) enhance compliance with provisions of CITES and laws of the United States or a foreign country that prohibit or regulate the taking or trade of Asian elephants or regulate the use and management of Asian elephant habitat; (4) develop sound scientific information on the condition of Asian elephant habitat, Asian elephant population numbers and trends, or the threats to such habitat, numbers, or trends; or (5) promote cooperative projects on those topics with other foreign governments, affected local communities, nongovernmental organizations, or others in the private sector. (e) Project Sustainability.—To the maximum extent practical, in determining whether to approve project proposals under this section, the Secretary shall give consideration to projects which will enhance sustainable integrated conservation development programs to ensure effective, long-term conservation of Asian elephants. (f) Project Reporting.—Each person who receives assistance under this section for a project shall provide periodic reports, as the Secretary considers necessary, to the Secretary and the Administrator. Each report shall include all information required by the Secretary, after consulting with the Administrator, for evaluating the progress and success of the project. (g) Matching Funds.—In determining whether to approve project proposals under this section, the Secretary shall give priority to those projects for which there exists some measure of matching funds. (h) Limitation on Use for Captive Breeding.—Amounts provided as a grant under this Act may not be used for captive breeding of Asian elephants other than for release in the wild.
111 STAT. 2153
SEC. 6. ASIAN ELEPHANT CONSERVATION FUND.

16 USC 4265.

 (a) Establishment.—There is established in the general fund of the Treasury a separate account to be known as the “Asian Elephant Conservation Fund”, which shall consist of amounts deposited into the Fund by the Secretary of the Treasury under subsection (b). (b) Deposits Into the Fund.—The Secretary of the Treasury shall deposit into the Fund— (1) all amounts received by the Secretary in the form of donations under subsection (d); and (2) other amounts appropriated to the Fund. (c) Use.— (1) In general.—Subject to paragraph (2), the Secretary may use amounts in the Fund without further appropriation to provide assistance under section 5. (2) Administration.—Of amounts in the Fund available for each fiscal year, the Secretary may use not more than 3 percent to administer the Fund. (d) Acceptance and Use of Donations.—The Secretary may accept and use donations to provide assistance under section 5. Amounts received by the Secretary in the form of donations shall be transferred to the Secretary of the Treasury for deposit into the Fund.
SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

16 USC 4266.

 There are authorized to be appropriated to the Fund $5,000,000 for each of fiscal years 1998, 1999, 2000, 2001, and 2002 to carry out this Act, which may remain available until expended.
Approved November 19, 1997.
LEGISLATIVE HISTORY—H.R. 1787 (S. 797): HOUSE REPORTS: No. 105–130 (Comm. on Transportation and Infrastructure). SENATE REPORTS: No. 105–30 accompanying S. 797 (Comm. on Environment and Public Works). CONGRESSIONAL RECORD, Vol. 143 (1997):

June 17, considered and passed House.

Nov. 7, considered and passed Senate.

 Public Law 105–97: To designate the United States Post Office located at 150 North 3rd Street in Steubenville, Ohio, as the “Douglas Applegate Post Office”. Public Law97 Public Law 105–97 111 Stat. 2154 1997-11-19 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2154 Public Law105–97 105th Congress
An Act To designate the United States Post Office located at 150 North 3rd Street in Steubenville, Ohio, as the “Douglas Applegate Post Office”.

Nov. 19, 1997

[H.R. 2129]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. DESIGNATION. The United States Post Office located at 150 North 3rd Street in Steubenville, Ohio, shall be known and designated as the “Douglas Applegate Post Office”.
SEC. 2. REFERENCES. Any reference in a law, map, regulation, document, paper, or other record of the United States to the United States Post Office referred to in section 1 shall be deemed to be a reference to the “Douglas Applegate Post Office”.
Approved November 19, 1997.
LEGISLATIVE HISTORY—H.R. 2129: CONGRESSIONAL RECORD, Vol. 143 (1997):

Oct. 21, considered and passed House.

Nov. 9, considered and passed Senate.

 Public Law 105–98: To amend title 38, United States Code, to provide a cost-of-living adjustment in the rates of disability compensation for veterans with service-connected disabilities and the rates of dependency and indemnity compensation for survivors of such veterans. Public Law98 Public Law 105–98 111 Stat. 2155 1997-11-19 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2155 Public Law105–98 105th Congress
An Act To amend title 38, United States Code, to provide a cost-of-living adjustment in the rates of disability compensation for veterans with service-connected disabilities and the rates of dependency and indemnity compensation for survivors of such veterans.

Nov. 19, 1997

[H.R. 2367]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Veterans' Compensation Rate Amendments of 1997.

38 USC 101 note.
SECTION 1. SHORT TITLE; REFERENCES TO TITLE 38, UNITED STATES CODE. (a) Short Title.—This Act may be cited as the “Veterans’ Compensation Rate Amendments of 1997”. (b) References.—Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of title 38, United States Code.
SEC. 2. DISABILITY COMPENSATION. (a) Increase in Rates.—Section 1114 is amended— (1) by striking out “$87” in subsection (a) and inserting in lieu thereof “$95”; (2) by striking out “$166” in subsection (b) and inserting in lieu thereof “$182”; (3) by striking out “$253” in subsection (c) and inserting in lieu thereof “$279”; (4) by striking out “$361” in subsection (d) and inserting in lieu thereof “$399”; (5) by striking out “$515” in subsection (e) and inserting in lieu thereof “$569”; (6) by striking out “$648” in subsection (f) and inserting in lieu thereof “$717”; (7) by striking out “$819” in subsection (g) and inserting in lieu thereof “$905”; (8) by striking out “$948” in subsection (h) and inserting in lieu thereof “$1,049”; (9) by striking out “$1,067” in subsection (i) and inserting in lieu thereof “$1,181”; (10) by striking out “$1,774” in subsection (j) and inserting in lieu thereof “$1,964”; (11) in subsection (k)— (A) by striking out “$70” both places it appears and inserting in lieu thereof “$75”; and (B) by striking out “$2,207” and “$3,093” and inserting in lieu thereof “$2,443” and “$3,426”, respectively; 111 STAT. 2156 (12) by striking out “$2,207” in subsection (l) and inserting in lieu thereof “$2,443”; (13) by striking out “$2,432” in subsection (m) and inserting in lieu thereof “$2,694”; (14) by striking out “$2,768” in subsection (n) and inserting in lieu thereof “$3,066”; (15) by striking out “$3,093” each place it appears in subsections (o) and (p) and inserting in lieu thereof “$3,426”; (16) by striking out “$1,328” and “$1,978” in subsection (r) and inserting in lieu thereof “$1,471” and “$2,190”, respectively; and (17) by striking out “$1,985” in subsection (s) and inserting in lieu thereof “$2,199”. (b)

38 USC 1114 note.

Special Rule.—The Secretary of Veterans Affairs may authorize administratively, consistent with the increases authorized by this section, the rates of disability compensation payable to persons within the purview of section 10 of Public Law 85–857 who are not in receipt of compensation payable pursuant to chapter 11 of title 38, United States Code.
SEC. 3. ADDITIONAL COMPENSATION FOR DEPENDENTS. Section 1115(1) is amended— (1) by striking out “$105” in clause (A) and inserting in lieu thereof “$114”; (2) by striking out “$178” and “$55” in clause (B) and inserting in lieu thereof “$195” and “$60”, respectively; (3) by striking out “$72” and “$55” in clause (C) and inserting in lieu thereof “$78” and “$60”, respectively; (4) by striking out “$84” in clause (D) and inserting in lieu thereof “$92”; (5) by striking out “$195” in clause (E) and inserting in lieu thereof “$215”; and (6) by striking out “$164” in clause (F) and inserting in lieu thereof “$180”.
SEC. 4. CLOTHING ALLOWANCE FOR CERTAIN DISABLED VETERANS. Section 1162 is amended by striking out “$478” and inserting in lieu thereof “$528”.
SEC. 5. DEPENDENCY AND INDEMNITY COMPENSATION FOR SURVIVING SPOUSES. (a) New Law Rates.—Section 1311(a) is amended— (1) by striking out “$769” in paragraph (1) and inserting in lieu thereof “$850”; and (2) by striking out “$169” in paragraph (2) and inserting in lieu thereof “$185”. 111 STAT. 2157 (b) Old Law Rates.—The table in subsection (a)(3) is amended to read as follows:
“1If the veteran served as sergeant major of the Army, senior enlisted advisor of the Navy, chief master sergeant of the Air Force, sergeant major of the Marine Corps, or master chief petty officer of the Coast Guard, at the applicable time designated by section 402 of this title, the surviving spouse's rate shall be $1,044.
“2If the veteran served as Chairman or Vice Chairman of the Joint Chiefs of Staff, Chief of Staff of the Army, Chief of Naval Operations, Chief of Staff of the Air Force, Commandant of the Marine Corps, or Commandant of the Coast Guard, at the applicable time designated by section 402 of this title, the surviving spouse's rate shall be $1,941.”
  Monthly   Monthly
“Pay grade rate Pay grade rate
E-1 $850 W-4 $1,017
E-2 850 O-1 898
E-3 850 O-2 928
E-4 850 O-3 992
E-5 850 O-4 1,049
E-6 850 O-5 1,155
E-7 879 O-6 1,302
E-8 928 O-7 1,406
E-9 2968 O-8 1,541
W-1 898 O-9 1,651
W-2 934 O-1O 21,811
W-3 962    
(c) Additional DIC for Children.—Section 1311(b) is amended by striking out “$100” and all that follows and inserting in lieu thereof “$215 for each such child.”. (d) Aid and Attendance Allowance.—Section 1311(c) is amended by striking out “$195” and inserting in lieu thereof “$215”. (e) Housebound Rate.—Section 1311(d) is amended by striking out “$95” and inserting in lieu thereof “$104”.
SEC. 6. DEPENDENCY AND INDEMNITY COMPENSATION FOR CHILDREN. (a) DIC for Orphan Children.—Section 1313(a) is amended— (1) by striking out “$327” in paragraph (1) and inserting in lieu thereof “$361”; (2) by striking out “$471” in paragraph (2) and inserting in lieu thereof “$520”; (3) by striking out “$610” in paragraph (3) and inserting in lieu thereof “$675”; and (4) by striking out “$610” and “$120” in paragraph (4) and inserting in lieu thereof “$675” and “$132”, respectively. (b) Supplemental DIC for Disabled Adult Children.— Section 1314 is amended— (1) by striking out “$195” in subsection (a) and inserting in lieu thereof “$215”; (2) by striking out “$327” in subsection (b) and inserting in lieu thereof “$361”; and (3) by striking out “$166” in subsection (c) and inserting in lieu thereof “$182”.
111 STAT. 2158
SEC. 7. EFFECTIVE DATE. The amendments made by this Act shall take effect on December 1, 1997.
Approved November 19, 1997.
LEGISLATIVE HISTORY—H.R. 2367 (S. 987): HOUSE REPORTS: No. 105–320 (Comm. on Veterans’ Affairs). SENATE REPORTS: No. 107–120 accompanying S. 987 (Comm. on Veterans’ Affairs). CONGRESSIONAL RECORD, Vol. 143 (1997):

Oct. 31, considered and passed House.

Nov. 5, considered and passed Senate.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):

Nov. 19, Presidential statement.

 Public Law 105–99: To designate the United States Post Office located at 450 North Centre Street in Pottsville, Pennsylvania, as the “Peter J. McCloskey Postal Facility”. Public Law99 Public Law 105–99 111 Stat. 2159 1997-11-19 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2159 Public Law105–99 105th Congress
An Act To designate the United States Post Office located at 450 North Centre Street in Pottsville, Pennsylvania, as the “Peter J. McCloskey Postal Facility”.

Nov. 19, 1997

[H.R. 2564]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. REDESIGNATION. The United States Post Office located at 450 North Centre Street in Pottsville, Pennsylvania, shall be known and designated as the “Peter J. McCloskey Postal Facility”.
SEC. 2. REFERENCES. Any reference in a law, map, regulation, document, paper, or other record of the United States to the United States Post Office referred to in section 1 shall be deemed to be a reference to the “Peter J. McCloskey Postal Facility”.
Approved November 19, 1997.
LEGISLATIVE HISTORY—H.R. 2564: CONGRESSIONAL RECORD, Vol. 143 (1997):

Oct. 21, considered and passed House.

Nov. 9, considered and passed Senate.

 Public Law 105–100: Making appropriations for the government of the District of Columbia and other activities chargeable in whole or in part against the revenues of said District for the fiscal year ending September 30, 1998, and for other purposes. Public Law100 Public Law 105–100 111 Stat. 2160 1997-11-19 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2160 Public Law105–100 105th Congress
An Act Making appropriations for the government of the District of Columbia and other activities chargeable in whole or in part against the revenues of said District for the fiscal year ending September 30, 1998, and for other purposes.

Nov. 19, 1997

[H.R. 2607]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
That the following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the District of Columbia for the fiscal year ending September 30, 1998, and for other purposes, namely:
<num value="I">TITLE I—</num><sidenote><p class="indent0 firstIndent0 fontsize8">District of Columbia Appropriations Act, 1998.</p></sidenote><heading>FISCAL YEAR 1998 APPROPRIATIONS</heading> <appropriations level="major"> <heading>FEDERAL FUNDS</heading> <appropriations level="intermediate"> <heading>Federal Payment for Management Reform</heading> <content>For payment to the District of Columbia, as authorized by section 11103(c) of the National Capital Revitalization and Self-Government Improvement Act of 1997, Public Law 105–33, $8,000,000, to remain available until September 30, 1999, which shall be deposited into an escrow account of the District of Columbia Financial Responsibility and Management Assistance Authority and shall be disbursed from such escrow account pursuant to the instructions of the Authority only for a program of management reform pursuant to sections 11101–11106 of the District of Columbia Management Reform Act of 1997, Public Law 105–33.</content> </appropriations> <appropriations level="intermediate"> <heading>Federal Contribution to the Operations of the Nation’s Capital</heading> <content>For a Federal contribution to the District of Columbia toward the costs of the operation of the government of the District of Columbia, $190,000,000, which shall be deposited into an escrow account held by the District of Columbia Financial Responsibility and Management Assistance Authority, which shall allocate the funds to the Mayor at such intervals and in accordance with such terms and conditions as it considers appropriate to implement the financial plan for the year: <proviso><i>Provided</i>, That these funds may be used by the District of Columbia for the costs of advances to the District government as authorized by section 11402 of the National Capital Revitalization and Self-Government Improvement Act of 1997, Public Law 105–33:</proviso> <proviso><i>Provided further</i>, That not less than $30,000,000 shall be used by the District of Columbia to repay the accumulated general fund deficit.</proviso></content> </appropriations> <page identifier="/us/stat/111/2161">111 STAT. 2161</page> <appropriations level="intermediate"> <heading>Federal Payment to the District of Columbia Corrections Trustee Operations</heading> <content>For payment to the District of Columbia Corrections Trustee, $169,000,000 for the administration and operation of correctional facilities and for the administrative operating costs of the Office of the Corrections Trustee, as authorized by section 11202 of the National Capital Revitalization and Self-Government Improvement Act of 1997, Public Law 105–33.</content> </appropriations> <appropriations level="intermediate"> <heading>Federal Payment to the District of Columbia Corrections Trustee for Correctional Facilities, Construction and Repair</heading> <content>For payment to the District of Columbia Corrections Trustee for Correctional Facilities, $302,000,000, to remain available until expended, of which not less than $294,900,000 is available for transfer to the Federal Prison System, as authorized by section 11202 of the National Capital Revitalization and Self-Government Improvement Act of 1997, Public Law 105–33.</content> </appropriations> <appropriations level="intermediate"> <heading>Federal Payment to the District of Columbia</heading> <appropriations level="small"> <heading>criminal justice system</heading> <subheading>(including transfer of funds)</subheading> <content><p>Notwithstanding any other provision of law, $108,000,000 for payment to the Joint Committee on Judicial Administration in the District of Columbia for operation of the District of Columbia Courts, including pension costs: <proviso><i>Provided</i>, That said sums shall be paid quarterly by the Treasury of the United States based on quarterly apportionments approved by the Office of Management and Budget, with payroll and financial services to be provided on a contractual basis with the General Services Administration, said services to include the preparation and submission of monthly financial reports to the President and to the Committees on Appropriations of the Senate and House of Representatives, the Committee on Governmental Affairs of the Senate, and the Committee on Government Reform and Oversight of the House of Representatives; of which not to exceed $750,000 shall be available for establishment and operations of the District of Columbia Truth in Sentencing Commission as authorized by section 11211 of the National Capital Revitalization and Self-Government Improvement Act of 1997, Public Law 105–33.</proviso></p> <p>Notwithstanding any other provision of law, for an additional amount, $43,000,000, for payment to the Offender Supervision Trustee to be available only for obligation by the Offender Supervision Trustee; of which $26,855,000 shall be available for Parole, Adult Probation and Offender Supervision; of which $9,000,000 shall be available to the Public Defender Service; of which $6,345,000 shall be available to the Pretrial Services Agency; and of which not to exceed $800,000 shall be transferred to the United States Parole Commission to implement section 11231 of the National Capital Revitalization and Self-Government Improvement Act of 1997, Public Law 105–33.</p></content> <page identifier="/us/stat/111/2162">111 STAT. 2162</page> </appropriations> </appropriations> <appropriations level="major"> <heading>DISTRICT OF COLUMBIA FUNDS</heading> <heading>OPERATING EXPENSES</heading> <appropriations level="intermediate"> <heading>Division of Expenses</heading> <content>The following amounts are appropriated for the District of Columbia for the current fiscal year out of the general fund of the District of Columbia, except as otherwise specifically provided.</content> </appropriations> <appropriations level="intermediate"> <heading>Governmental Direction and Support</heading> <content>Governmental direction and support, $105,177,000 (including $84,316,000 from local funds, $14,013,000 from Federal funds, and $6,848,000 from other funds): <proviso><i>Provided</i>, That not to exceed $2,500 for the Mayor, $2,500 for the Chairman of the Council of the District of Columbia, and $2,500 for the City Administrator shall be available from this appropriation for official purposes:</proviso> <proviso><i>Provided further</i>, That any program fees collected from the issuance of debt shall be available for the payment of expenses of the debt management program of the District of Columbia:</proviso> <proviso><i>Provided further</i>, That no revenues from Federal sources shall be used to support the operations or activities of the Statehood Commission and Statehood Compact Commission:</proviso> <proviso><i>Provided further</i>, That the District of Columbia shall identify the sources of funding for Admission to Statehood from its own locally generated revenues:</proviso> <proviso><i>Provided further</i>, That $240,000 shall be available for citywide special elections:</proviso> <proviso><i>Provided further</i>, That all employees permanently assigned to work in the Office of the Mayor shall be paid from funds allocated to the Office of the Mayor.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Economic Development and Regulation</heading> <content>Economic development and regulation, $120,072,000 (including $40,377,000 from local funds, $42,065,000 from Federal funds, and $37,630,000 from other funds), together with $12,000,000 collected in the form of BID tax revenue collected by the District of Columbia on behalf of business improvement districts pursuant to the Business Improvement Districts Act of 1996, effective May 29, 1996 (D.C. Law 11–134; D.C. Code, Sec. 1–2271 et seq.), and the Business Improvement Districts Temporary Amendment Act of 1997 (Bill 12–230).</content> </appropriations> <appropriations level="intermediate"> <heading>Public Safety and Justice</heading> <content>Public safety and justice, including purchase or lease of 135 passenger-carrying vehicles for replacement only, including 130 for police-type use and five for fire-type use, without regard to the general purchase price limitation for the current fiscal year, 529,739,000 (including $510,326,000 from local funds, $13,519,000 from Federal funds, and $5,894,000 from other funds): <proviso><i>Provided</i>, That the Metropolitan Police Department is authorized to replace not to exceed 25 passenger-carrying vehicles and the Department of Fire and Emergency Medical Services of the District of Columbia is authorized to replace not to exceed five passenger-carrying vehicles annually whenever the cost of repair to any damaged vehicle exceeds three-fourths of the cost of the replacement:</proviso> <proviso><i>Provided further</i>. That not to exceed $500,000 shall be available from <page identifier="/us/stat/111/2163">111 STAT. 2163</page> this appropriation for the Chief of Police for the prevention and detection of crime:</proviso> <proviso><i>Provided further</i>, That the Metropolitan Police<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> Department shall provide quarterly reports to the Committees on Appropriations of the House and Senate on efforts to increase efficiency and improve the professionalism in the department:</proviso> <proviso><i>Provided further</i>, That notwithstanding any other provision of law, or Mayor’s Order 86–45, issued March 18, 1986, the Metropolitan Police Department’s delegated small purchase authority shall be $500,000:</proviso> <proviso><i>Provided further</i>, That the District of Columbia government may not require the Metropolitan Police Department to submit to any other procurement review process, or to obtain the approval of or be restricted in any manner by any official or employee of the District of Columbia government, for purchases that do not exceed $500,000:</proviso> <proviso><i>Provided further</i>, That the Mayor shall reimburse the District of Columbia National Guard for expenses incurred in connection with services that are performed in emergencies by the National Guard in a militia status and are requested by the Mayor, in amounts that shall be jointly determined and certified as due and payable for these services by the Mayor and the Commanding General of the District of Columbia National Guard:</proviso> <proviso><i>Provided further</i>, That such sums as may be necessary for reimbursement to the District of Columbia National Guard under the preceding proviso shall be available from this appropriation, and the availability of the sums shall be deemed as constituting payment in advance for emergency services involved:</proviso> <proviso><i>Provided further</i>, That the Metropolitan Police Department is authorized to maintain 3,800 sworn officers, with leave for a 50 officer attrition:</proviso> <proviso><i>Provided further</i>. That no more than 15 members of the Metropolitan Police Department shall be detailed or assigned to the Executive Protection Unit, until the Chief of Police submits a recommendation to the Council for its review:</proviso> <proviso><i>Provided further</i>, That $100,000 shall be available for inmates released on medical and geriatric parole:</proviso> <proviso><i>Provided further</i>, That not less than $2,254,754 shall be available to support a pay raise for uniformed firefighters, when authorized by the District of Columbia Council and the District of Columbia Financial Responsibility and Management Assistance Authority, which funding will be made available as savings achieved through actions within the appropriated budget:</proviso> <proviso><i>Provided further</i>, That,<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> commencing on December 31, 1997, the Metropolitan Police Department shall provide to the Committees on Appropriations of the Senate and House of Representatives, the Committee on Governmental Affairs of the Senate, and the Committee on Government Reform and Oversight of the House of Representatives, quarterly reports on the status of crime reduction in each of the 83 police service areas established throughout the District of Columbia:</proviso> <proviso><i>Provided further</i>, That funds appropriated for expenses under the District of Columbia Criminal Justice Act, approved September 3, 1974 (88 Stat. 1090; Public Law 93–412; D.C. Code, Sec. 11–2601 et seq.), for the fiscal year ending September 30, 1998, shall be available for obligations incurred under the Act in each fiscal year since inception in fiscal year 1975:</proviso> <proviso><i>Provided further</i>. That funds appropriated for expenses under the District of Columbia Neglect Representation Equity Act of 1984, effective March 13, 1985 (D.C. Law 5–129; D.C. Code, Sec. 16–2304), for the fiscal year ending September 30, 1998, shall be available for obligations incurred under the Act in each fiscal year since inception in fiscal year 1985:</proviso> <proviso><i>Provided further</i>, That funds appropriated for expenses under <page identifier="/us/stat/111/2164">111 STAT. 2164</page> the District of Columbia Guardianship, Protective Proceedings, and Durable Power of Attorney Act of 1986, effective February 27, 1987 (D.C. Law 6–204; D.C. Code, Sec. 21–2060), for the fiscal year ending September 30, 1998, shall be available for obligations incurred under the Act in each fiscal year since inception in fiscal year 1989.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Public Education System</heading> <content>Public education system, including the development of national defense education programs, $672,444,000 (including $530,197,000 from local funds, $112,806,000 from Federal funds, and $29,441,000 from other funds), to be allocated as follows: $564,129,000 (including $460,143,000 from local funds, $98,491,000 from Federal funds, and $5,495,000 from other funds), for the public schools of the District of Columbia; $8,900,000 from local hinds for the District of Columbia Teachers’ Retirement Fund; $3,376,000 from local funds (not including funds already made available for District of Columbia public schools) for public charter schools: <proviso><i>Provided</i>, That if the entirety of this allocation has not been provided as payments to any public charter schools currently in operation through the per pupil funding formula, the funds shall be available for new public charter schools on a per pupil basis:</proviso> <proviso><i>Provided further</i>, That $400,000 be available to the District of Columbia Public Charter School Board for administrative costs:</proviso> <proviso><i>Provided further</i>, That if the entirety of this allocation has not been provided as payment to one or more public charter schools by May 1, 1998, and remains unallocated, the funds shall be deposited into a special revolving loan fund described in section 172 of this Act to be used solely to assist existing or new public charter schools in meeting startup <sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote>and operating costs:</proviso> <proviso><i>Provided further</i>, That the Emergency Transitional Education Board of Trustees of the District of Columbia shall report to Congress not later than 120 days after the date of enactment of this Act on the capital needs of each public charter school and whether the current per pupil funding formula should reflect these needs:</proviso> <proviso><i>Provided further</i>, That until the Emergency Transitional Education Board of Trustees reports to Congress as provided in the preceding proviso, the Emergency Transitional Education Board of Trustees shall take appropriate steps to provide public charter schools with assistance to meet capital expenses in a manner that is equitable with respect to assistance provided <sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote>to other District of Columbia public schools:</proviso> <proviso><i>Provided further</i>, That the Emergency Transitional Education Board of Trustees shall report to Congress not later than November 1, 1998, on the implementation of their policy to give preference to newly created District of Columbia public charter schools for surplus public school property; $74,087,000 (including $37,791,000 from local funds, $12,804,000 from Federal funds, and $23,492,000 from other funds) for the University of the District of Columbia; $22,036,000 (including $20,424,000 from local funds, $1,158,000 from Federal funds, and $454,000 from other funds) for the Public Library; $2,057,000 (including $1,704,000 from local funds and $353,000 from Federal funds) for the Commission on the Arts and Humanities:</proviso> <proviso><i>Provided further</i>, That the public schools of the District of Columbia are authorized to accept not to exceed 31 motor vehicles for exclusive use in the driver education program:</proviso> <proviso><i>Provided further</i>, That not to exceed $2,500 for the Superintendent of Schools, $2,500 for <page identifier="/us/stat/111/2165">111 STAT. 2165</page> the President of the University of the District of Columbia, and $2,000 for the Public Librarian shall be available from this appropriation for official purposes:</proviso> <proviso><i>Provided further</i>, That not less than $1,200,000 shall be available for local school allotments in a restricted line item:</proviso> <proviso><i>Provided further</i>, That not less than $4,500,000 shall be available to support kindergarten aides in a restricted line item:</proviso> <proviso><i>Provided further</i>, That not less than $2,800,000 shall be available to support substitute teachers in a restricted line item:</proviso> <proviso><i>Provided further</i>, That not less than $1,788,000 shall be available in a restricted line item for school counselors:</proviso> <proviso><i>Provided further</i>, That this appropriation shall not be available to subsidize the education of nonresidents of the District of Columbia at the University of the District of Columbia, unless the Board of Trustees of the University of the District of Columbia adopts, for the fiscal year ending September 30, 1998, a tuition rate schedule that will establish the tuition rate for nonresident students at a level no lower than the nonresident tuition rate charged at comparable public institutions of higher education in the metropolitan area.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Human Support Services</heading> <content>Human support services, $1,718,939,000 (including $789,350,000 from local funds, $886,702,000 from Federal funds, and $42,887,000 from other funds): <proviso><i>Provided</i>, That $21,089,000 of this appropriation, to remain available until expended, shall be available solely for District of Columbia employees’ disability compensation:</proviso> <proviso><i>Provided further</i>, That a peer review committee shall be established to review medical payments and the type of service received by a disability compensation claimant:</proviso> <proviso><i>Provided further</i>, That the District of Columbia shall not provide free government services such as water, sewer, solid waste disposal or collection, utilities, maintenance, repairs, or similar services to any legally constituted private nonprofit organization (as defined in section 411(5) of Public Law 100–77, approved July 22, 1987) providing emergency shelter services in the District, if the District would not be qualified to receive reimbursement pursuant to the Stewart B. McKinney Homeless Assistance Act, approved July 22, 1987 (101 Stat. 485; Public Law 100–77; 42 U.S.C. 11301 et seq.).</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Public Works</heading> <content>Public works, including rental of one passenger-carrying vehicle for use by the Mayor and three passenger-carrying vehicles for use by the Council of the District of Columbia and leasing of passenger-carrying vehicles, $241,934,000 (including $227,983,000 from local funds, $3,350,000 from Federal funds, and $10,601,000 from other funds): <proviso><i>Provided</i>, That this appropriation shall not be available for collecting ashes or miscellaneous refuse from hotels and places of business:</proviso> <proviso><i>Provided further</i>, That $3,000,000 shall be available for the lease financing, operation, and maintenance of two mechanical street sweepers, one flusher truck, five packer trucks, one front-end loader, and various public litter containers:</proviso> <proviso><i>Provided further</i>, That $2,400,000 shall be available for recycling activities.</proviso></content> </appropriations> <page identifier="/us/stat/111/2166">111 STAT. 2166</page> <appropriations level="intermediate"> <heading>Financing and Other Uses</heading> <content>Financing and other uses, $454,773,000 (including for payment to the Washington Convention Center, $5,400,000 from local funds; reimbursement to the United States of funds loaned in compliance with An Act to provide for the establishment of a modem, adequate, and efficient hospital center in the District of Columbia, approved August 7, 1946 (60 Stat. 896; Public Law 79–648); section 1 of An Act to authorize the Commissioners of the District of Columbia to borrow funds for capital improvement programs and to amend provisions of law relating to Federal Government participation in meeting costs of maintaining the Nation’s Capital City, approved June 6, 1958 (72 Stat. 183; Public Law 85–451; D.C. Code, Sec. 9–219); section 4 of An Act to authorize the Commissioners of the District of Columbia to plan, construct, operate, and maintain a sanitary sewer to connect the Dulles International Airport with the District of Columbia system, approved June 12, 1960 (74 Stat. 211; Public Law 86–515); and sections 723 and 743(f) of the District of Columbia Home Rule Act of 1973, approved December 24, 1973, as amended (87 Stat. 821; Public Law 93–198; D.C. Code, Sec. 47–321, note; 91 Stat. 1156; Public Law 95–131; D.C. Code, Sec. 9–219, note), including interest as required thereby, $384,430,000 from local funds; for the purpose of eliminating the $331,589,000 general fund accumulated deficit as of September 30, 1990, $39,020,000 from local funds, as authorized by section 461(a) of the District of Columbia Home Rule Act, approved December 24, 1973, as amended (105 Stat. 540; Public Law 102–106; D.C. Code, Sec. 47–321(a)(1); for payment of interest on short-term borrowing, $12,000,000 from local funds; for lease payments in accordance with the Certificates of Participation involving the land site underlying the building located at One Judiciary Square, $7,923,000 from local funds; for human resources development, including costs of increased employee training, administrative reforms, and an executive compensation system, $6,000,000 from local funds); for equipment leases, the Mayor may finance $13,127,000 of equipment cost, plus cost of issuance not to exceed two percent of the par amount being financed on a lease purchase basis with a maturity not to exceed five years: <proviso><i>Provided</i>, That $75,000 is allocated to the Department of Corrections, $8,000,000 for the Public Schools, $50,000 for the Public Library, $260,000 for the Department of Human Services, $244,000 for the Department of Recreation and Parks, and $4,498,000 for the Department of Public Works.</proviso></content> </appropriations> </appropriations> <appropriations level="major"> <heading>ENTERPRISE FUNDS</heading> <heading>Enterprise and Other Uses</heading> <content>Enterprise and other uses, $15,725,000 (including for the Cable Television Enterprise Fund, established by the Cable Television Communications Act of 1981, effective October 22, 1983 (D.C. Law 5–36; D.C. Code, Sec. 43–1801 et seq.), $2,467,000 (including $2,135,000 from local funds and $332,000 from other funds); for the Public Service Commission, $4,547,000 (including $4,250,000 from local funds, $117,000 from Federal funds, and $180,000 from other funds); for the Office of the People’s Counsel, $2,428,000 from local funds; for the Office of Banking and Financial Institutions, $600,000 (including $100,000 from local funds and $500,000 <page identifier="/us/stat/111/2167">111 STAT. 2167</page> from other funds); for the Department of Insurance and Securities Regulation, $5,683,000 from other funds).</content> </appropriations> <appropriations level="intermediate"> <heading>Water and Sewer Authority and the Washington Aqueduct</heading> <content>For the Water and Sewer Authority and the Washington Aqueduct, $297,310,000 from other funds (including $263,425,000 for the Water and Sewer Authority and $33,885,000 for the Washington Aqueduct) of which $41,423,000 shall be apportioned and payable to the District’s debt service fund for repayment of loans and interest incurred for capital improvement projects.</content> </appropriations> <appropriations level="intermediate"> <heading>Lottery and Charitable Games Control Board</heading> <content>For the Lottery and Charitable Games Control Board, established by the District of Columbia Appropriation Act for the fiscal year ending September 30, 1982, approved December 4, 1981 (95 Stat. 1174, 1175; Public Law 97–91), as amended, for the purpose of implementing the Law to Legalize Lotteries, Daily Numbers Games, and Bingo and Raffles for Charitable Purposes in the District of Columbia, effective March 10, 1981 (D.C. Law 3–172; D.C. Code, secs. 2–2501 et seq. and 22–1516 et seq.), $213,500,000: <proviso><i>Provided</i>, That the District of Columbia shall identify the source of funding for this appropriation title from the District’s own locally generated revenues:</proviso> <proviso><i>Provided further</i>, That no revenues from Federal sources shall be used to support the operations or activities of the Lottery and Charitable Games Control Board.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Starplex Fund</heading> <content>For the Starplex Fund, $5,936,000 from other funds for expenses incurred by the Armory Board in the exercise of its powers granted by An Act To Establish A District of Columbia Armory Board, and for other purposes, approved June 4, 1948 (62 Stat. 339; D.C. Code, Sec. 2–301 et seq.) and the District of Columbia Stadium Act of 1957, approved September 7, 1957 (71 Stat. 619; Public Law 85–300; D.C. Code, Sec. 2–321 et seq.): <proviso><i>Provided</i>, That the Mayor shall submit a budget for the Armory Board for the forthcoming fiscal year as required by section 442(b) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 824; Public Law 93–198; D.C. Code, Sec. 47–301(b)).</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>D.C. General Hospital</heading> <content>For the District of Columbia General Hospital, established by Reorganization Order No. 57 of the Board of Commissioners, effective August 15, 1953, $97,019,000, of which $44 335,000 shall be derived by transfer from the general fund and $52,684,000 shall be derived from other funds.</content> </appropriations> <appropriations level="intermediate"> <heading>D.C. Retirement Board</heading> <content>For the D.C. Retirement Board, established by section 121 of the District of Columbia Retirement Reform Act of 1979, approved November 17, 1979 (93 Stat. 866; D.C. Code, Sec. 1–711), $16,762,000 from the earnings of the applicable retirement funds to pay legal, management, investment, and other fees and administrative expenses of the District of Columbia Retirement Board: <page identifier="/us/stat/111/2168">111 STAT. 2168</page> <sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote><proviso><i>Provided</i>, That the District of Columbia Retirement Board shall provide to the Congress and to the Council of the District of Columbia a quarterly report of the allocations of charges by fund and of expenditures of all funds:</proviso> <proviso><i>Provided further</i>, That the District of Columbia Retirement Board shall provide the Mayor, for transmittal to the Council of the District of Columbia, an itemized accounting of the planned use of appropriated funds in time for each annual budget submission and the actual use of such funds in time for each annual audited financial report.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Correctional Industries Fund</heading> <content>For the Correctional Industries Fund, established by the District of Columbia Correctional Industries Establishment Act, approved October 3, 1964 (78 Stat. 1000; Public Law 88–622), $3,332,000 from other funds.</content> </appropriations> <appropriations level="intermediate"> <heading>Washington Convention Center Enterprise Fund</heading> <content>For the Washington Convention Center Enterprise Fund, $46,400,000, of which $5,400,000 shall be derived by transfer from the general fund.</content> </appropriations> <appropriations level="intermediate"> <heading>District of Columbia Financial Responsibility and Management Assistance Authority</heading> <content>For the District of Columbia Financial Responsibility and Management Assistance Authority, established by section 101(a) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995, approved April 17, 1995 (109 Stat. 97; Public Law 104–8), $3,220,000.</content> </appropriations> <appropriations level="intermediate"> <heading>Capital Outlay</heading> <content>For construction projects, $269,330,000 (including $31,100,000 for the highway trust fund, $105,485,000 from local funds, and $132,745,000 in Federal funds), to remain available until expended: <proviso><i>Provided</i>, That funds for use of each capital project implementing agency shall be managed and controlled in accordance with all procedures and limitations established under the Financial Management System:</proviso> <proviso><i>Provided further</i>, That all funds provided by this appropriation title shall be available only for the specific projects <sidenote><p class="indent0 firstIndent0 fontsize8">Expiration date.</p></sidenote>and purposes intended:</proviso> <proviso><i>Provided further</i>, That notwithstanding the foregoing, all authorizations for capital outlay projects, except those projects covered by the first sentence of section 23(a) of the Federal-Aid Highway Act of 1968, approved August 23, 1968 (82 Stat. 827; Public Law 90–495; D.C. Code, Sec. 7–134, note), for which funds are provided by this appropriation title, shall expire on September 30, 1999, except authorizations for projects as to which funds have been obligated in whole or in part prior to September 30, 1999:</proviso> <proviso><i>Provided further</i>, That, upon expiration of any such project authorization, the funds provided herein for the project shall lapse.</proviso></content> </appropriations> <appropriations level="intermediate"> <heading>Deficit Reduction and Revitalization</heading> <content>For deficit reduction and revitalization, $201,090,000, to be deposited into an escrow account held by the District of Columbia Financial Responsibility and Management Assistance Authority <page identifier="/us/stat/111/2169">111 STAT. 2169</page> (hereafter in this section referred to as “Authority”), which shall allocate the funds to the Mayor, or such other District official as the Authority may deem appropriate, at such intervals and in accordance with such terms and conditions as the Authority considers appropriate: <proviso><i>Provided</i>, That these funds shall only be used for reauction of the accumulated general fund deficit; capital expenditures, including debt service; and management and productivity improvements, as allocated by the Authority:</proviso> <proviso><i>Provided further</i>, That no funds may be obligated until a plan for their use is approved by the Authority:</proviso> <proviso><i>Provided further</i>, That the Authority shall inform the Committees on Appropriations of the Senate and House of Representatives, the Committee on Governmental Affairs of the Senate, and the Committee on Government Reform and Oversight of the House of Representatives of the approved plans.</proviso></content> </appropriations> </appropriations> <level> <heading>GENERAL PROVISIONS</heading> <section><num value="101"><inline class="smallCaps">Section</inline> 101. </num><content>The expenditure of any appropriation under this<sidenote><p class="indent0 firstIndent0 fontsize8">Contracts.</p><p class="indent0 firstIndent0 fontsize8">Public information.</p></sidenote> Act for any consulting service through procurement contract, pursuant to 5 U.S.C. 3109, shall be limited to those contracts where such expenditures are a matter of public record and available for public inspection, except where otherwise provided under existing law, or under existing Executive order issued pursuant to existing law.</content></section> <section><num value="102"><inline class="smallCaps">Sec</inline>. 102. </num><content>Except as otherwise provided in this Act, all vouchers covering expenditures of appropriations contained in this Act shall be audited before payment by the designated certifying official and the vouchers as approved shall be paid by checks issued by the designated disbursing official.</content></section> <section><num value="103"><inline class="smallCaps">Sec</inline>. 103. </num><content>Whenever in this Act an amount is specified within an appropriation for particular purposes or objects of expenditure, such amount, unless otherwise specified, shall be considered as the maximum amount that may be expended for said purpose or object rather than an amount set apart exclusively therefor.</content></section> <section><num value="104"><inline class="smallCaps">Sec.</inline> 104. </num><content>Appropriations in this Act shall be available, when authorized by the Mayor, for allowances for privately owned automobiles and motorcycles used for the performance of official duties at rates established by the Mayor: <proviso><i>Provided</i>, That such rates shall not exceed the maximum prevailing rates for such vehicles as prescribed in the Federal Property Management Regulations 1017 (Federal Travel Regulations).</proviso></content></section> <section><num value="105"><inline class="smallCaps">Sec.</inline> 105. </num><content>Appropriations in this Act shall be available for expenses of travel and for the payment of dues of organizations concerned with the work of the District of Columbia government, when authorized by the Mayor: <proviso><i>Provided</i>, That the Council of the District of Columbia and the District of Columbia Courts may expend such funds without authorization by the Mayor.</proviso></content></section> <section><num value="106"><inline class="smallCaps">Sec.</inline> 106. </num><content>There are appropriated from the applicable funds of the District of Columbia such sums as may be necessary for making refunds and for the payment of judgments that have been entered against the District of Columbia government: <proviso><i>Provided</i>, That nothing contained in this section shall be construed as modifying or affecting the provisions of section 11(c)(3) of title XII of the District of Columbia Income and Franchise Tax Act of 1947, approved March 31, 1956 (70 Stat. 78; Public Law 84–460; D.C. Code, Sec. 47–812.11(c)(3)).</proviso></content></section> <page identifier="/us/stat/111/2170">111 STAT. 2170</page> <section><num value="107"><inline class="smallCaps">Sec.</inline> 107. </num><content>Appropriations in this Act shall be available for the payment of public assistance without reference to the requirement of section 544 of the District of Columbia Public Assistance Act of 1982, effective April 6, 1982 (D.C. Law 4–101; D.C. Code, Sec. 3–205.44), and for the non-Federal share of funds necessary to qualify for Federal assistance under the Juvenile Delinquency Prevention and Control Act of 1968, approved July 31, 1968 (82 Stat. 462; Public Law 90–445; 42 U.S.C. 3801 et seq.).</content></section> <section><num value="108"><inline class="smallCaps">Sec</inline>. 108. </num><content>No part of any appropriation contained in this Act shall remain available for obligation beyond the current fiscal year unless expressly so provided herein.</content></section> <section><num value="109"><inline class="smallCaps">Sec</inline>. 109. </num><content>No funds appropriated in this Act for the District of Columbia government for the operation of educational institutions, the compensation of personnel, or for other educational purposes may be used to permit, encourage, facilitate, or further partisan political activities. Nothing herein is intended to prohibit the availability of school buildings for the use of any community or partisan political group during non-school hours.</content></section> <section><num value="110"><inline class="smallCaps">Sec</inline>. 110. </num><content>None of the funds appropriated in this Act shall be made available to pay the salary of any employee of the District of Columbia government whose name, title, grade, salary, past work experience, and salary history are not available for inspection by the House and Senate Committees on Appropriations, the Subcommittee on the District of Columbia of the House Committee on Government Reform and Oversight, the Subcommittee on Oversight of Government Management, Restructuring and the District of Columbia of the Senate Committee on Governmental Affairs, and the Council of the District of Columbia, or their duly authorized representative.</content></section> <section><num value="111"><inline class="smallCaps">Sec</inline>. 111. </num><content>There are appropriated from the applicable funds of the District of Columbia such sums as may be necessary for making payments authorized by the District of Columbia Revenue Recovery Act of 1977, effective September 23, 1977 (D.C. Law 2–20; D.C. Code, Sec. 47–421 et seq.).</content></section> <section><num value="112"><inline class="smallCaps">Sec</inline>. 112. </num><content>No part of this appropriation shall be used for publicity or propaganda purposes or implementation of any policy including boycott designed to support or defeat legislation pending before Congress or any State legislature.</content></section> <section><num value="113"><inline class="smallCaps">Sec.</inline> 113. </num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote><content>At the start of the fiscal year, the Mayor shall develop an annual plan, by quarter and by project, for capital outlay borrowings: <proviso><i>Provided</i>, That within a reasonable time after the close of each quarter, the Mayor shall report to the Council of the District of Columbia and the Congress the actual borrowings and spending progress compared with projections.</proviso></content></section> <section><num value="114"><inline class="smallCaps">Sec</inline>. 114. </num><content>The Mayor shall not borrow any funds for capital projects unless the Mayor has obtained prior approval from the Council of the District of Columbia, by resolution, identifying the projects and amounts to be financed with such borrowings.</content></section> <section><num value="115"><inline class="smallCaps">Sec.</inline> 115. </num><content>The Mayor shall not expend any moneys borrowed for capital projects for the operating expenses of the District of Columbia government.</content></section> <section><num value="116"><inline class="smallCaps">Sec</inline>. 116. </num><content>None of the funds appropriated by this Act may be obligated or expended by reprogramming except pursuant to advance approval of the reprogramming granted according to the procedure set forth in the Joint Explanatory Statement of the Committee of Conference (House Report No. 96–443), which accompanied the District of Columbia Appropriation Act, 1980, approved <page identifier="/us/stat/111/2171">111 STAT. 2171</page> October 30, 1979 (93 Stat. 713; Public Law 96–93), as modified in House Report No. 98–265, and in accordance with the Reprogramming Policy Act of 1980, effective September 16, 1980 (D.C. Law 3–100; D.C. Code, Sec. 47–361 et seq.): <proviso><i>Provided</i>, That for the<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability</p></sidenote>, fiscal year ending September 30, 1998 the above shall apply except as modified by Public Law 104–8.</proviso></content></section> <section><num value="117"><inline class="smallCaps">Sec.</inline> 117. </num><content>None of the Federal funds provided in this Act shall be obligated or expended to provide a personal cook, chauffeur, or other personal servants to any officer or employee of the District of Columbia.</content></section> <section><num value="118"><inline class="smallCaps">Sec</inline>. 118. </num><content>None of the Federal funds provided in this Act shall be obligated or expended to procure passenger automobiles as defined in the Automobile Fuel Efficiency Act of 1980, approved October 10, 1980 (94 Stat. 1824; Public Law 96–425; 15 U.S.C. 2001(2)), with an Environmental Protection Agency estimated miles per gallon average of less than 22 miles per gallon: <proviso><i>Provided</i>, That this section shall not apply to security, emergency rescue, or armored vehicles.</proviso></content></section> <section><num value="119"><inline class="smallCaps">Sec</inline>. 119. </num><subsection class="inline"><num value="a">(a) </num><content>Notwithstanding section 422(7) of the District of Columbia Home Rule Act of 1973, approved December 24, 1973 (87 Stat. 790; Public Law 93–198; D.C. Code, Sec. 1–242(7)), the City Administrator shall be paid, during any fiscal year, a salary at a rate established by the Mayor, not to exceed the rate established for level IV of the Executive Schedule under 5 U.S.C. 5315.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>For purposes of applying any provision of law limiting the availability of funds for payment of salary or pay in any fiscal year, the highest rate of pay established by the Mayor under subsection (a) of this section for any position for any period during the last quarter of calendar year 1997 shall be deemed to be the rate of pay payable for that position for September 30, 1997.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Notwithstanding section 4(a) of the District of Columbia Redevelopment Act of 1945, approved August 2, 1946 (60 Stat. 793; Public Law 79–592; D.C. Code, Sec. 5–803(a)), the Board of Directors of the District of Columbia Redevelopment Land Agency shall be paid, during any fiscal year, per diem compensation at a rate established by the Mayor.</content></subsection></section> <section><num value="120"><inline class="smallCaps">Sec.</inline> 120. </num><content>Notwithstanding any other provisions of law, the<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability</p></sidenote>, provisions of the District of Columbia Government Comprehensive Merit Personnel Act of 1978, effective March 3, 1979 (D.C. Law 2–139; D.C. Code, Sec. 1–601.1 et seq.), enacted pursuant to section 422(3) of the District of Columbia Home Rule Act of 1973, approved December 24, 1973 (87 Stat. 790; Public Law 93–198; D.C. Code, Sec. 1–242(3)), shall apply with respect to the compensation of District of Columbia employees: <proviso><i>Provided</i>, That for pay purposes, employees of the District of Columbia government shall not be subject to the provisions of title 5, United States Code.</proviso></content></section> <section><num value="121"><inline class="smallCaps">Sec.</inline> 121. </num><content>The Director of the Department of Administrative Services may pay rentals and repair, alter, and improve rented premises, without regard to the provisions of section 322 of the Economy Act of 1932 (Public Law 72–212; 40 U.S.C. 278a), based upon a determination by the Director that, by reason of circumstances set forth in such determination, the payment of these rents and the execution of this work, without reference to the limitations of section 322, is advantageous to the District in terms of economy, efficiency, and the District’s best interest.</content></section> <section><num value="122"><inline class="smallCaps">Sec</inline>. 122. </num><content>No later than 30 days after the end of the first quarter of the fiscal year ending September 30, 1998, the Mayor <page identifier="/us/stat/111/2172">111 STAT. 2172</page> of the District of Columbia shall submit to the Council of the District of Columbia the new fiscal year 1998 revenue estimates as of the end of the first quarter of fiscal year 1998. These estimates shall be used in the budget request for the fiscal year ending September 30, 1999. The officially revised estimates at midyear shall be used for the midyear report.</content></section> <section><num value="123"><inline class="smallCaps">Sec.</inline> 123. </num><content>No sole source contract with the District of Columbia government or any agency thereof may be renewed or extended without opening that contract to the competitive bidding process as set forth in section 303 of the District of Columbia Procurement Practices Act of 1985, effective February 21, 1986 (D.C. Law 685; D.C. Code, Sec. 1–1183.3), except that the District of Columbia government or any agency thereof may renew or extend sole source contracts for which competition is not feasible or practical: <proviso><i>Provided</i>, That the determination as to whether to invoke the competitive bidding process has been made in accordance with duly promulgated rules and procedures and said determination has been reviewed and approved by the District of Columbia Financial Responsibility and Management Assistance Authority.</proviso></content></section> <section><num value="124"><inline class="smallCaps">Sec.</inline> 124. </num><content>For purposes of the Balanced Budget and Emergency Deficit Control Act of 1985, approved December 12, 1985 (99 Stat. 1037; Public Law 99–177), as amended, the term “program, project, and activity” shall be synonymous with and refer specifically to each account appropriating Federal funds in this Act, and any sequestration order shall be applied to each of the accounts rather than to the aggregate total of those accounts: <proviso><i>Provided</i>, That sequestration orders shall not be applied to any account that is specifically exempted from sequestration by the Balanced Budget and Emergency Deficit Control Act of 1985, approved December 12, 1985 (99 Stat. 1037; Public Law 99–177), as amended.</proviso></content></section> <section><num value="125"><inline class="smallCaps">Sec.</inline> 125. </num><sidenote><p class="indent0 firstIndent0 fontsize8">Sequestration</p></sidenote><content>In the event a sequestration order is issued pursuant to the Balanced Budget and Emergency Deficit Control Act of 1985, approved December 12, 1985 (99 Stat. 1037; Public Law 99–177), as amended, after the amounts appropriated to the District of Columbia for the fiscal year involved have been paid to the District of Columbia, the Mayor of the District of Columbia shall pay to the Secretary of the Treasury, within 15 days after receipt of a request therefor from the Secretary of the Treasury, such <sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote>amounts as are sequestered by the order: <proviso><i>Provided</i>, That the sequestration percentage specified in the order shall be applied proportionately to each of the Federal appropriation accounts in this Act that are not specifically exempted from sequestration by the Balanced Budget and Emergency Deficit Control Act of 1985, approved December 12, 1985 (99 Stat. 1037; Public Law 99–177), as amended.</proviso></content></section> <section><num value="126"><inline class="smallCaps">Sec.</inline> 126. </num><subsection class="inline"><num value="a">(a) </num><chapeau>An entity of the District of Columbia government may accept and use a gift or donation during fiscal year 1998 if—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the Mayor approves the acceptance and use of the gift or donation: <proviso><i>Provided</i>, That the Council of the District of Columbia may accept and use gifts without prior approval by the Mayor; and</proviso></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the entity uses the gift or donation to carry out its authorized functions or duties.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Records.</p><p class="indent0 firstIndent0 fontsize8">Public Information.</p></sidenote><content>Each entity of the District of Columbia government shall keep accurate and detailed records of the acceptance and use of any gift or donation under subsection (a) of this section, and shall make such records available for audit and public inspection.</content></subsection> <page identifier="/us/stat/111/2173">111 STAT. 2173</page> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>For the purposes of this section, the term “entity of the District of Columbia government” includes an independent agency of the District of Columbia.</content></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>This section shall not apply to the District of Columbia Board of Education, which may, pursuant to the laws and regulations of the District of Columbia, accept and use gifts to the public schools without prior approval by the Mayor.</content></subsection> </section> <section><num value="127"><inline class="smallCaps">Sec.</inline> 127. </num><content>None of the Federal funds provided in this Act may be used by the District of Columbia to provide for salaries, expenses, or other costs associated with the offices of United States Senator or United States Representative under section 4(d) of the District of Columbia Statehood Constitutional Convention Initiatives of 1979, effective March 10, 1981 (D.C. Law 3–171; D.C. Code, sec. 1–113(d)).</content></section> <section><num value="128"><inline class="smallCaps">Sec.</inline> 128. </num><chapeau>The University of the District of Columbia shall<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> submit to the Congress, the Mayor, the District of Columbia Financial Responsibility and Management Assistance Authority, and the Council of the District of Columbia no later than fifteen (15) calendar days after the end of each month a report that sets forth—</chapeau></section> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>current month expenditures and obligations, year-to-date expenditures and obligations, and total fiscal year expenditure projections versus budget broken out on the basis of control center, responsibility center, and object class, and for all funds, non-appropriated funds, and capital financing;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>a list of each account for which spending is frozen and the amount of funds frozen, broken out by control center, responsibility center, detailed object, and for all funding sources;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>a list of all active contracts in excess of $10,000 annually, which contains the name of each contractor; the budget to which the contract is charged, broken out on the basis of control center and responsibility center, and contract identifying codes used by the University of the District of Columbia; payments made in the last month and year-to-date, the total amount of the contract and total payments made for the contract and any modifications, extensions, renewals; and specific modifications made to each contract in the last month;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>all reprogramming requests and reports that have been made by the University of the District of Columbia within the last month in compliance with applicable law; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>changes made in the last month to the organizational structure of the University of the District of Columbia, displaying previous and current control centers and responsibility centers, the names of the organizational entities that have been changed, the name of the staff member supervising each entity affected, and the reasons for the structural change.</content></paragraph> <section><num value="129"><inline class="smallCaps">Sec</inline>. 129. </num><content>Funds authorized or previously appropriated to the government of the District of Columbia by this or any other Act to procure the necessary hardware and installation of new software, conversion, testing, and training to improve or replace its financial management system are also available for the acquisition of accounting and financial management services and the leasing of necessary hardware, software or any other related goods or services, as determined by the District of Columbia Financial Responsibility and Management Assistance Authority.</content></section> <page identifier="/us/stat/111/2174">111 STAT. 2174</page> <section><num value="130"><inline class="smallCaps">Sec</inline>. 130. </num><chapeau>Section 456 of the District of Columbia Home Rule Act of 1973, approved December 24, 1973 (87 Stat. 790; Public Law 93–198; D.C. Code, secs. 47–231 et seq.) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>in subsection (a)(1), by—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>striking “<quotedText>1995</quotedText>” and inserting “<quotedText>1998</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>striking “<quotedText>Mayor</quotedText>” and inserting “<quotedText>District of Columbia Financial Responsibility and Management Assistance Authority</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>striking “<quotedText>Committee on the District of Columbia</quotedText>” and inserting “<quotedText>Committee on Government Reform and Oversight</quotedText>”;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>in subsection (b)(1), by—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>striking “<quotedText>1997</quotedText>” and inserting “<quotedText>1999</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>striking “<quotedText>Mayor</quotedText>” and inserting “<quotedText>Authority</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>striking “<quotedText>Committee on the District of Columbia</quotedText>” and inserting “<quotedText>Committee on Government Reform and Oversight</quotedText>”;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>in subsection (b)(3), by striking “<quotedText>Committee on the District of Columbia</quotedText>” and inserting “<quotedText>Committee on Government Reform and Oversight</quotedText>”;</content></paragraph> <paragraph class="indent2 fontsize10"><num value="4">(4) </num><chapeau>in subsection (c)(1), by—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>striking “<quotedText>1995</quotedText>” and inserting “<quotedText>1997</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>striking “<quotedText>Mayor</quotedText>” and inserting “<quotedText>Chief Financial Officer</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>striking “<quotedText>Committee on the District of Columbia</quotedText>” and inserting “<quotedText>Committee on Government Reform and Oversight</quotedText>”;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><chapeau>in subsection (c)(2)(A), by—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>striking “<quotedText>1997</quotedText>” and inserting “<quotedText>1999</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>striking “<quotedText>Mayor</quotedText>” and inserting “<quotedText>Chief Financial Officer</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>striking “<quotedText>Committee on the District of Columbia</quotedText>” and inserting “<quotedText>Committee on Government Reform and Oversight</quotedText>”;</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>in subsection (c)(2)(B), by striking “<quotedText>Committee on the District of Columbia</quotedText>” and inserting “<quotedText>Committee on Government Reform and Oversight</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><chapeau>in subsection (d)(1), by—</chapeau></paragraph> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>striking “<quotedText>1994</quotedText>” and inserting “<quotedText>1997</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>striking “<quotedText>Mayor</quotedText>” and inserting “<quotedText>Chief Financial Officer</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>striking “<quotedText>Committee on the District of Columbia</quotedText>” and inserting “<quotedText>Committee on Government Reform and Oversight</quotedText>”.</content></subparagraph> </section> <section><num value="131">Sec. 131. </num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote><chapeau>For purposes of the appointment of the head of a department of the government of the District of Columbia under section 11105(a) of the National Capital Revitalization and Self Improvement Act of 1997, Public Law 105–33, the following rules shall apply:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>After the Mayor notifies the Council under paragraph (1)(A)(ii) of such section of the nomination of an individual for appointment, the Council shall meet to determine whether to confirm or reject the nomination.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>If the Council fails to confirm or reject the nomination during the 7-day period described in paragraph (1)(A)(iii) of such section, the Council shall be deemed to nave confirmed the nomination.</content></paragraph> <page identifier="/us/stat/111/2175">111 STAT. 2175</page> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>For purposes of paragraph (1)(B) of such section, if the Council does not confirm a nomination (or is not deemed to have confirmed a nomination) during the 30-day period described in such paragraph, the Mayor shall be deemed to have failed to nominate an individual during such period to fill the vacancy in the position of the head of the department.</content></paragraph></section> <section><num value="132"><inline class="smallCaps">Sec</inline>. 132. </num><content>None of the binds appropriated under this Act shall<sidenote><p class="indent0 firstIndent0 fontsize8">Abortion.</p></sidenote> be expended for any abortion except where the life of the mother would be endangered if the fetus were carried to term or where the pregnancy is the result of an act of rape or incest.</content></section> <section><num value="133"><inline class="smallCaps">Sec</inline>. 133. </num><content>None of the funds made available in this Act may<sidenote><p class="indent0 firstIndent0 fontsize8">Domestic partners.</p></sidenote> be used to implement or enforce the Health Care Benefits Expansion Act of 1992 (D.C. Law 9–114; D.C. Code, sec. 36–1401 et seq.) or to otherwise implement or enforce any system of registration of unmarried, cohabiting couples (whether homosexual, heterosexual, or lesbian), including but not limited to registration for the purpose of extending employment, health, or governmental benefits to such couples on the same basis as such benefits are extended to legally married couples.</content></section> <section><num value="134"><inline class="smallCaps">Sec</inline>. 134. </num><chapeau>The Emergency Transitional Education Board of<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> Trustees shall submit to the Congress, the Mayor, the District of Columbia Financial Responsibility and Management Assistance Authority, and the Council of the District of Columbia no later than fifteen (15) calendar days after the end of each month a report that sets forth—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>current month expenditures and obligations, year-to-date expenditures and obligations, and total fiscal year expenditure projections versus budget broken out on the basis of control center, responsibility center, agency reporting code, and object class, and for all funds, including capital financing;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>a list of each account for which spending is frozen and the amount of funds frozen, broken out by control center, responsibility center, detailed object, and agency reporting code, and for all funding sources;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>a list of all active contracts in excess of $10,000 annually, which contains the name of each contractor; the budget to which the contract is charged, broken out on the basis of control center, responsibility center, and agency reporting code; and contract identifying codes used by the D.C. Public Schools; payments made in the last month and year-to-date, the total amount of the contract and total payments made for the contract and any modifications, extensions, renewals; and specific modifications made to each contract in the last month;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>all reprogramming requests and reports that are required to be, and have been, submitted to the Board of Education; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>changes made in the last month to the organizational structure of the D.C. Public Schools, displaying previous and current control centers and responsibility centers, the names of the organizational entities that have been changed, the name of the staff member supervising each entity affected, and the reasons for the structural change.</content></paragraph> </section> <section><num value="135"><inline class="smallCaps">Sec</inline>. 135. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>The Emergency Transitional<sidenote><p class="indent0 firstIndent0 fontsize8">Records.</p><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> Education Board of Trustees of the District of Columbia and the University of the District of Columbia shall annually compile an accurate and verifiable report on the positions and employees in <page identifier="/us/stat/111/2176">111 STAT. 2176</page>the public school system and the university, respectively. The annual report shall set forth—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the number of validated schedule A positions in the District of Columbia public schools and the University of the District of Columbia for fiscal year 1997, fiscal year 1998, and thereafter on a full-time equivalent basis, including a compilation of all positions by control center, responsibility center, funding source, position type, position title, pay plan, grade, and annual salary; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>a compilation of all employees in the District of Columbia public schools and the University of the District of Columbia as of the preceding December 31, verified as to its accuracy in accordance with the functions that each employee actually performs, by control center, responsibility center, agency reporting code, program (including funding source), activity, location for accounting purposes, job title, grade and classification, annual salary, and position control number.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Submission</inline>.—</heading><content>The annual report required by subsection (a) of this section shall be submitted to the Congress, the Mayor, the District of Columbia Council, the Consensus Commission, and the Authority, not later than February 15 of each year.</content></subsection> </section> <section><num value="136"><inline class="smallCaps">Sec</inline>. 136. </num><sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote><subsection class="inline"><num value="a">(a) </num><content>No later than October 1, 1997, or within 15 calendar days after the date of the enactment of the District of Columbia Appropriations Act, 1998, whichever occurs later, and each succeeding year, the Emergency Transitional Education Board of Trustees and the University of the District of Columbia shall submit to the appropriate congressional committees, the Mayor, the District of Columbia Council, the Consensus Commission, and the District of Columbia Financial Responsibility and Management Assistance Authority, a revised appropriated funds operating budget for the public school system and the University of the District of Columbia for such fiscal year that is in the total amount of the approved appropriation and that realigns budgeted data for personal services and other-than-personal services, respectively, with anticipated actual expenditures.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The revised budget required by subsection (a) of this section shall be submitted in the format of the budget that the Emergency Transitional Education Board of Trustees and the University of the District of Columbia submit to the Mayor of the District of Columbia for inclusion in the Mayor’s budget submission to the Council of the District of Columbia pursuant to section 442 of the District of Columbia Home Rule Act, Public Law 93–198, as amended (D.C. Code, sec. 47–301).</content></subsection> </section> <section><num value="137"><inline class="smallCaps">Sec</inline>. 137. </num><content>The Emergency Transitional Education Board of Trustees, the Board of Trustees of the University of the District of Columbia, the Board of Library Trustees, and the Board of Governors of the University of the District of Columbia School of Law shall vote on and approve their respective annual or revised budgets before submission to the Mayor of the District of Columbia for inclusion in the Mayor’s budget submission to the Council of the District of Columbia in accordance with section 442 of the District of Columbia Home Rule Act, Public Law 93–198, as amended (D.C. Code, sec. 47–301), or before submitting their respective budgets directly to the Council.</content></section> <section><num value="138"><inline class="smallCaps">Sec</inline>. 138. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Ceiling on Total Operating Expenses</inline>.—</heading> <page identifier="/us/stat/111/2177">111 STAT. 2177</page> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Notwithstanding any other provision of law, the total amount appropriated in this Act for operating expenses for the District of Columbia for fiscal year 1998 under the caption “Division of Expenses” shall not exceed the lesser of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the sum of the total revenues of the District of Columbia for such fiscal year; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><chapeau>$4,811,906,000 (of which $118,269,000 shall be from intra-District funds), which amount may be increased by the following:</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>proceeds of one-time transactions, which are expended for emergency or unanticipated operating or capital needs approved by the District of Columbia Financial Responsibility and Management Assistance Authority; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>additional expenditures which the Chief Financial Officer of the District of Columbia certifies will produce additional revenues during such fiscal year at least equal to 200 percent of such additional expenditures, and which are approved by the District of Columbia Financial Responsibility and Management Assistance Authority.</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>to the extent that the sum of the total revenues of the District of Columbia for such fiscal year exceed the total amount provided for in subparagraph (B) above, the Chief Financial Officer of the District of Columbia, with the approval of the District of Columbia Financial Responsibility and Management Assistance Authority, may credit up to ten percent (10%) of the amount of such difference, not to exceed $3,300,000, to a reserve fund which may be expended for operating purposes in future fiscal years, in accordance with the financial plans and budgets for such years.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Enforcement</inline>.—</heading><content>The Chief Financial Officer of the District of Columbia and the District of Columbia Financial Responsibility and Management Assistance Authority (hereafter in this section referred to as “Authority”) shall take such steps as are necessary to assure that the District of Columbia meets the requirements of this section, including the apportioning by the Chief Financial Officer of the appropriations and funds made available to the District during fiscal year 1998, except that the Chief Financial Officer may not reprogram for operating expenses any funds derived from bonds, notes, or other obligations issued for capital projects.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Acceptance and Use of Grants Not Included in Ceiling</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>Notwithstanding subsection (a), the Mayor in consultation with the Chief Financial Officer of the District of Columbia during a control year, as defined in section 305(4) of Public Law 104–8, as amended, 109 Stat. 152, may accept, obligate, and expend Federal, private, and other grants received by the District government that are not reflected in the amounts appropriated in this Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Requirement of chief financial officer report and financial responsibility and management assistance authority approval</inline>.—</heading><chapeau>No such Federal, private, or other grant <page identifier="/us/stat/111/2178">111 STAT. 2178</page> may be accepted, obligated, or expended pursuant to paragraph (1) until—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the Chief Financial Officer of the District submits to the Authority a report setting forth detailed information regarding such grant; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the Authority has reviewed and approved the acceptance, obligation, and expenditure of such grant in accordance with review and approval procedures consistent with the provisions of the District of Columbia Financial Responsibility and Management Assistance Act of 1995.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Prohibition on spending in anticipation of approval or receipt</inline>.—</heading><content>No amount may be obligated or expended from the general fund or other funds of the District government in anticipation of the approval or receipt of a grant under paragraph (2)(B) or in anticipation of the approval or receipt of a Federal, private, or other grant not subject to such paragraph.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><heading><inline class="smallCaps">Monthly reports</inline>.—</heading><content>The Chief Financial Officer of the District of Columbia shall prepare a monthly report setting forth detailed information regarding all Federal, private, and other grants subject to this subsection. Each such report shall be submitted to the Council of the District of Columbia, and to the Committees on Appropriations of the House of Representatives and the Senate, not later than 15 days after the end of the month covered by the report.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Report on Expenditures by Financial Responsibility and Management Assistance Authority</inline>.—</heading><content>Not later than 20 calendar days after the end of each fiscal quarter starting October 1, 1997, the District of Columbia Financial Responsibility and Management Assistance Authority shall submit a report to the Committees on Appropriations of the House of Representatives and the Senate, the Committee on Government Reform and Oversight of the House, and the Committee on Governmental Affairs of the Senate providing an itemized accounting of all non-appropriated funds obligated or expended by the Authority for the quarter. The report shall include information on the date, amount, purpose, and vendor name, and a description of the services or goods provided with respect to the expenditures of such funds.</content></subsection> </section> <section><num value="139">Sec. 139. </num><chapeau>The District of Columbia Emergency Transitional Education Board of Trustees shall, subject to the contract approval provisions of Public Law 104–8—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>develop a comprehensive plan to identify and accomplish energy conservation measures to achieve maximum cost-effective energy and water savings;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>enter into innovative financing and contractual mechanisms including, but not limited to, utility demand-side management programs and energy savings performance contracts and water conservation performance contracts: <proviso><i>Provided</i>, That the terms of such contracts do not exceed 25 years; and</proviso></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>permit and encourage each department or agency and other instrumentality of the District of Columbia to participate in programs conducted by any gas, electric or water utility of the management of electricity or gas demand or for energy or water conservation.</content></subparagraph> </section> <section><num value="140"><inline class="smallCaps">Sec</inline>. 140. </num><content>If a department or agency of the government of the District of Columbia is under the administration of a court-appointed receiver or other court-appointed official during fiscal <page identifier="/us/stat/111/2179">111 STAT. 2179</page> year 1998 or any succeeding fiscal year, the receiver or official shall prepare and submit to the Mayor, for inclusion in the annual budget of the District of Columbia for the year, annual estimates of the expenditures and appropriations necessary for the maintenance and operation of the department or agency. All such estimates shall be forwarded by the Mayor to the Council, for its action pursuant to sections 446 and 603(c) of the District of Columbia Home Rule Act, without revision but subject to the Mayor’s recommendations. Notwithstanding any provision of the District of Columbia Home Rule Act, the Council may comment or make recommendations concerning such annual estimates but shall have no authority under such Act to revise such estimates.</content></section> <section><num value="141"><inline class="smallCaps">Sec</inline>. 141. </num><content>In addition to amounts appropriated or otherwise made available, $12,000,000 is hereby appropriated to the National Park Service and shall be available only for the United States Park Police operations in the District of Columbia.</content></section> <section><num value="142"><inline class="smallCaps">Sec</inline>. 142. </num><content>The District government shall maintain for fiscal year 1998 the same funding levels as provided in fiscal year 1997 for homeless services in the District of Columbia.</content></section> <section><num value="143"><inline class="smallCaps">Sec</inline>. 143. </num><content>The District of Columbia Financial Responsibility<sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> and Management Assistance Authority and the Chief Executive Officer of the District of Columbia public schools are hereby directed to report to the Appropriations Committees of the Senate and the House of Representatives, the Senate Committee on Governmental Affairs and the Committee on Government Reform and Oversight of the House of Representatives not later than April 1, 1998, on all measures necessary and steps to be taken to ensure that the District’s public schools open on time to begin the 19981999 academic year.</content></section> <section><num value="144"><inline class="smallCaps">Sec</inline>. 144. </num><content>There are appropriated from applicable funds of the District of Columbia such sums as may be necessary to hire 12 additional inspectors for the Alcoholic Beverage Commission. Of the additional inspectors, 6 shall focus their responsibilities on the enforcement of laws relating to the sale of alcohol to minors.</content></section> <section><num value="145"><inline class="smallCaps">Sec</inline>. 145. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Not later than 6 months after the date of enactment of this Act, the General Accounting Office shall conduct and submit to Congress a study of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the District of Columbia’s alcoholic beverage tax structure and its relation to surrounding jurisdictions;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the effects of the District of Columbia’s lower excise taxes on alcoholic beverages on consumption of alcoholic beverages in the District of Columbia;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>ways in which the District of Columbia’s tax structure can be revised to bring it into conformity with the higher levels in surrounding jurisdictions; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>ways in which those increased revenues can be used to lower consumption and promote abstention from alcohol among young people.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>The study should consider whether—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>alcohol is being sold in proximity to schools and other areas where children are likely to be; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>creation of alcohol-free zones in areas frequented by children would be useful in deterring underage alcohol consumption.</content></paragraph> </subsection></section> <section><num value="146"><inline class="smallCaps">Sec</inline>. 146. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Of the amounts appropriated in this Act to the District of Columbia, funds may be expended to—</chapeau> <page identifier="/us/stat/111/2180">111 STAT. 2180</page> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>hire 5 additional inspectors for the Department of Consumer and Regulatory Affairs to focus on monitoring day care centers and home day care operations; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>hire 5 additional Department of Human Services monitors to focus on selecting quality day care centers eligible for public financing and monitoring safety standards at such centers.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Nothing in this section shall be deemed to supersede or otherwise preempt the development and implementation of the management reform plan for the Department of Consumer and Regulatory Affairs and the Department of Human Services as authorized in the District of Columbia Management Reform Act of 1997 (subtitle B, title XI, Public Law 105–33).</content></subsection> </section> <section><num value="147"><inline class="smallCaps">Sec.</inline> 147. </num><sidenote><p class="indent0 firstIndent0 fontsize8">Nation's Capital Bicentennial Designation Act.</p></sidenote><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Short Title; Findings; Purpose</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Short title</inline>.—</heading><content>This section may be cited as the “<shortTitle role="section">Nation’s Capital Bicentennial Designation Act</shortTitle>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>The Senate finds that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the year 2000 will mark the 200th anniversary of Washington, D.C. as the Nation’s permanent capital, commencing when the Government moved from Philadelphia to the Federal City;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the framers of the Constitution provided for the establishment of a special district to serve as “the seat of Government of the United States”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>the site for the city was selected under the direction of President George Washington, with construction initiated in 1791;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>in submitting his design to Congress, Major Pierre Charles L’Enfant included numerous parks, fountains, and sweeping avenues designed to reflect a vision as grand and as ambitious as the American experience itself;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E) </num><content>the capital city was named after President George Washington to commemorate and celebrate his triumph in building the Nation;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F) </num><content>as the seat of Government of the United States for almost 200 years, the Nation’s capital has been a center of American culture and a world symbol of freedom and democracy;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">(G) </num><content>from Washington, D.C., President Abraham Lincoln labored to preserve the Union and the Reverend Martin Luther King, Jr. led an historic march that energized the civil rights movement, reminding America of its promise of liberty and justice for all; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">(H) </num><content>the Government of the United States must continually work to ensure that the Nation’s capital is and remains the shining city on the hill.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Purpose</inline>.—</heading><chapeau>The purposes of this section are to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>designate the year 2000 as the “Year of National Bicentennial Celebration for Washington, D.C.—the Nation’s Capital”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>establish the Presidents’ Day holiday in the year 2000 as a day of national celebration for the 200th anniversary of Washington, D.C.</content></subparagraph> </paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Nation’s Capital National Bicentennial</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>The year 2000 is designated as the “Year of the National Bicentennial Celebration for Washington, D.C.—the Nation’s Capital” and the Presidents’ Day Federal holiday <page identifier="/us/stat/111/2181">111 STAT. 2181</page> in the year 2000 is designated as a day of national celebration for the 200th anniversary of Washington, D.C.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Sense of the senate</inline>.—</heading><content>It is the sense of the Senate that all Federal entities should coordinate with and assist the Nation’s Capital Bicentennial Celebration, a nonprofit 501(c)(3) entity, organized and operating pursuant to the laws of the District of Columbia, to ensure the success of events and projects undertaken to renew and celebrate the bicentennial of the establishment of Washington, D.C. as the Nation’s capital.</content></paragraph> </subsection></section> <section><num value="148"><inline class="smallCaps">Sec</inline>. 148. </num><content>Notwithstanding section 602(c)(1) of the District of Columbia Home Rule Act (D.C. Code, sec. 1–233(c)(1)), General Obligation Bond Act of 1998 (D.C. Bill 12–371), if enacted by the Council of the District of Columbia and approved by the District of Columbia Financial Responsibility and Management Assistance Authority, shall take effect on the date of such approval or the date of the enactment of this Act, whichever is later.</content></section> <section><num value="149"><inline class="smallCaps">Sec</inline>. 149. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Notwithstanding any other provision of law, rule, or regulation, an employee of the District of Columbia public schools shall be—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>classified as an Educational Service employee;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>placed under the personnel authority of the Board of Education; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>subject to all Board of Education rules.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>School-based personnel shall constitute a separate competitive area from nonschool-based personnel who shall not compete with school-based personnel for retention purposes.</content></subsection> </section> <section><num value="150"><inline class="smallCaps">Sec</inline>. 150. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Restrictions on Use of Official Vehicles</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>None of the funds made available by this Act or by any other Act may be used to provide any officer or employee of the District of Columbia with an official vehicle unless the officer or employee uses the vehicle only in the performance of the officer’s or employee’s official duties. For purposes of this paragraph, the term “official duties” does not include travel between the officer’s or employee’s residence and workplace (except in the case of a police officer who resides in the District of Columbia).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The Chief Financial Officer of the District of Columbia<sidenote><p class="indent0 firstIndent0 fontsize8">Records.</p></sidenote> shall submit, by December 15, 1997, an inventory, as of September 30, 1997, of all vehicles owned, leased or operated by the District of Columbia government. The inventory shall include, but not be limited to, the department to which the vehicle is assigned; the year and make of the vehicle; the acquisition date and cost; the general condition of the vehicle; annual operating and maintenance costs; current mileage; and whether the vehicle is allowed to be taken home by a District officer or employee and if so, the officer or employee’s title and resident location.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Source of Payment for Employees Detailed Within Government</inline>.—</heading><content>For purposes of determining the amount of funds expended by any entity within the District of Columbia government during fiscal year 1998 and each succeeding fiscal year, any expenditures of the District government attributable to any officer or employee of the District government who provides services which are within the authority and jurisdiction of the entity (including any portion of the compensation paid to the officer or employee attributable to the time spent in providing such services) shall be treated as expenditures made from the entity’s budget, without <page identifier="/us/stat/111/2182">111 STAT. 2182</page> regard to whether the officer or employee is assigned to the entity or otherwise treated as an officer or employee of the entity.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Restricting Providers From Whom Employees May Receive Disability Compensation Services</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 2303(a) of the District of Columbia Comprehensive Merit Personnel Act of 1978 (D.C Code, sec. 1–624.3(a)) is amended by striking paragraph (3) and all that follows and inserting the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>By or on the order of the District of Columbia government medical officers and hospitals, or by or on the order of a physician or managed care organization designated or approved by the Mayor.”.</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Services furnished</inline>.—</heading><content>Section 2303 of such Act (D.C. Code, sec. 1–624.3) is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><paragraph class="inline"><num value="1">(1) </num><content>An employee to whom services, appliances, or supplies are furnished pursuant to subsection (a) shall be provided with such services, appliances, and supplies (including reasonable transportation incident thereto) by a managed care organization or other health care provider designated by the Mayor, in accordance with such rules, regulations, and instructions as the Mayor considers appropriate.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>Any expenses incurred as a result of furnishing services, appliances, or supplies which are authorized by the Mayor under paragraph (1) shall be paid from the Employees’ Compensation Fund.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>Any medical service provided pursuant to this subsection shall be subject to utilization review under section 2323.”.</content></paragraph> </subsection></quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Repeal penalty for delayed payment of compensation</inline>.—</heading><content>Section 2324 of such Act (D.C. Code, sec. 1–624.24) is amended by striking subsection (c).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>Section 2301 of such Act (D.C. Code, sec. 1–624.1) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>in the first sentence of subsection (c), by inserting “<quotedText>and as designated by the Mayor to provide services to injured employees</quotedText>” after “State law”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="r">“(r)</num><paragraph class="inline"><num value="1">(1) </num><content>The term ‘managed care organization’ means an organization of physicians and allied health professionals organized to and capable of providing systematic and comprehensive medical care and treatment of injured employees which is designated by the Mayor to provide such care and treatment under this title.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The term ‘allied health professional’ means a medical care provider (including a nurse, physical therapist, laboratory technician, X-ray technician, social worker, or other provider who provides such care within the scope of practice under applicable law) who is employed by or affiliated with a managed care organization.”.</content></paragraph></subsection> </quotedContent> </content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote><heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this subsection shall apply with respect to services, supplies, or appliances furnished under title XXIII of the District of Columbia Merit Personnel Act of 1978 on or after the date of the enactment of this Act.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Modification of Reduction in Force Procedures</inline>.—</heading><content>The District of Columbia Government Comprehensive Merit Personnel Act of 1978 (D.C. Code, sec. 1–601.1 et seq.), as amended by section 140(b) of the District of Columbia Appropriations Act, 1997 (Public <page identifier="/us/stat/111/2183">111 STAT. 2183</page> Law 104–194), is amended by adding at the end the following new section: <quotedContent> <section><num value="2408">“SEC. 2408. </num><heading>ABOLISHMENT OF POSITIONS FOR FISCAL YEAR 1998.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><content>Notwithstanding any other provision of law, regulation, or collective bargaining agreement either in effect or to be negotiated while this legislation is in effect for the fiscal year ending September 30, 1998, each agency head is authorized, within the agency head’s discretion, to identify positions for abolishment.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>Prior to February 1, 1998, each personnel authority (other than a personnel authority of an agency which is subject to a management reform plan under subtitle B of title XI of the Balanced Budget Act of 1997) shall make a final determination that a position within the personnel authority is to be abolished.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>Notwithstanding any rights or procedures established by any other provision of this title, any District government employee, regardless of date of hire, who encumbers a position identified for abolishment shall be separated without competition or assignment rights, except as provided in this section.</content></subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><content>An employee affected by the abolishment of a position pursuant to this section who, but for this section would be entitled to compete for retention, shall be entitled to one round of lateral competition pursuant to Chapter 24 of the District of Columbia Personnel Manual, which shall be limited to positions in the employee’s competitive level.</content></subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><content>Each employee selected for separation pursuant to this<sidenote><p class="indent0 firstIndent0 fontsize8">Notice.</p></sidenote> section shall be given written notice of at least 30 days before the effective date of his or her separation.</content></subsection> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><chapeau>Neither the establishment of a competitive area smaller than an agency, nor the determination that a specific position is to be abolished, nor separation pursuant to this section shall be subject to review except that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>an employee may file a complaint contesting a determination or a separation pursuant to title XV of this Act or section 303 of the Human Rights Act of 1977 (D.C. Code, sec. 1–2543); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>an employee may file with the Office of Employee Appeals an appeal contesting that the separation procedures of subsections (d) and (e) were not properly applied.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="g">“(g) </num><chapeau>An employee separated pursuant to this section shall be<sidenote><p class="indent0 firstIndent0 fontsize8">Severance pay.</p></sidenote> entitled to severance pay in accordance with title XI of this Act, except that the following shall be included in computing creditable service for severance pay for employees separated pursuant to this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>four years for an employee who qualified for veterans preference under this Act, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>three years for an employee who qualified for residency preference under this Act.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="h">“(h) </num><content>Separation pursuant to this section shall not affect an employee’s rights under either the Agency Reemployment Priority Program or the Displaced Employee Program established pursuant to Chapter 24 of the District Personnel Manual.</content></subsection> <subsection class="indent0 fontsize10"><num value="i">“(i) </num><content>With respect to agencies which are not subject to a management<sidenote><p class="indent0 firstIndent0 fontsize8">Listing.</p></sidenote> reform plan under subtitle B of title XI of the Balanced Budget Act of 1997, the Mayor shall submit to the Council a listing of all positions to be abolished by agency and responsibility <page identifier="/us/stat/111/2184">111 STAT. 2184</page>center by March 1, 1998 or upon the delivery of termination notices to individual employees.</content></subsection> <subsection class="indent0 fontsize10"><num value="j">“(j) </num><content>Notwithstanding the provisions of section 1708 or section 2402(d), the provisions of this Act shall not be deemed negotiable.</content></subsection> <subsection class="indent0 fontsize10"><num value="k">“(k) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Termination notice.</p></sidenote><content>A personnel authority shall cause a 30-day termination notice to be served, no later than September 1, 1998, on any incumbent employee remaining in any position identified to be abolished pursuant to subsection (b) of this section.</content></subsection> <subsection class="indent0 fontsize10"><num value="l">“(l) </num><content>In the case of an agency which is subject to a management reform plan under subtitle B of title XI of the Balanced Budget Act of 1997, the authority provided by this section shall be exercised to carry out the agency’s management reform plan, and this section shall otherwise be implemented solely in a manner consistent with such plan.”.</content></subsection> </section> </quotedContent></content></subsection> <section><num value="151"><inline class="smallCaps">Sec</inline>. 151. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Compliance With Buy American Act</inline>.—</heading><content>None of the funds made available in this Act may be expended by an entity unless the entity agrees that in expending the funds the entity will comply with the Buy American Act (41 U.S.C. 10a–10c).</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of Congress; Requirement Regarding Notice</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Purchase of american-made equipment and products</inline>.—</heading><content>In the case of any equipment or product that may be authorized to be purchased with financial assistance provided using funds made available in this Act, it is the sense of the Congress that entities receiving the assistance should, in expending the assistance, purchase only American-made equipment and products to the greatest extent practicable.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Notice to recipients of assistance</inline>.—</heading><content>In providing financial assistance using funds made available in this Act, the head of each agency of the Federal or District of Columbia government shall provide to each recipient of the assistance a notice describing the statement made in paragraph (1) by the Congress.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Prohibition of Contracts With Persons Falsely Labeling Products as Made in America</inline>.—</heading><content>If it has been finally determined by a court or Federal agency that any person intentionally affixed a label bearing a “Made in America” inscription, or any inscription with the same meaning, to any product sold in or shipped to the United States that is not made in the United States, the person shall be ineligible to receive any contract or subcontract made with funds made available in this Act, pursuant to the debarment, suspension, and ineligibility procedures described in sections 9.400 through 9.409 of title 48, Code of Federal Regulations.</content></subsection> </section> <section><num value="152"><inline class="smallCaps">Sec</inline>. 152. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Cap on Stipends of Retirement Board Members</inline>.—</heading><content>Section 121(c)(1) of the District of Columbia Retirement Reform Act (D.C. Code, sec. 1–711(c)(1)) is amended by striking the period at the end and inserting the following: “, and the total amount to which a member may be entitled under this subsection during a year (beginning with 1998) may not exceed $5,000.”.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Resumption of Certain Terminated Annuities Paid to Child Survivors of District of Columbia Police and Firefighters</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>Subsection (k)(5) of the Policemen and Firemen’s Retirement and Disability Act (D.C. Code, sec. 4–622(e)) is amended by adding at the end the following new subparagraph: <page identifier="/us/stat/111/2185">111 STAT. 2185</page> <quotedContent> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>If the annuity of a child under subparagraph (A) or subparagraph (B) terminates because of marriage and such marriage ends, the annuity shall resume on the first day of the month in which it ends, but only if the individual is not otherwise ineligible for the annuity.”.</content></subparagraph> </quotedContent></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendment made by paragraph<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> (1) shall apply with respect to any termination of marriage taking effect on or after November 1, 1993, except that benefits shall be payable only with respect to amounts accruing for periods beginning on the first day of the month beginning after the later of such termination of marriage or such date of enactment.</content></paragraph> </subsection></section> <section><num value="153"><inline class="smallCaps">Sec</inline>. 153. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>The Council of the District of Columbia shall annually review and adjust the amount of the monthly assistance payment that may be made under the Temporary Assistance for Needy Families Program so that such payment is comparable with the monthly assistance payments made under such program in Maryland and Virginia counties that are contiguous to the District of Columbia.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>Subsection (a) shall apply with respect<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> to fiscal year 1998 and each succeeding fiscal year.</content></subsection> </section> <section><num value="154"><inline class="smallCaps">Sec</inline>. 154. </num><content>Effective as if included in the enactment of the Omnibus Consolidated Rescissions and appropriations Act of 1996, section 517 of such Act (110 Stat. 1321–248) is amended by striking “<quotedText>October 1, 1991</quotedText>” and inserting “<quotedText>the date of the enactment of this Act</quotedText>”.</content></section> <section><num value="155"><inline class="smallCaps">Sec</inline>. 155. </num><heading><inline class="smallCaps">Requiring Placement of Inspector General Hotline on Permit and License Application Forms</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>Each District of Columbia permit or license application form printed after the expiration of the 30-day period which begins on the date of the enactment of this Act shall include the telephone number established by the Inspector General of the District of Columbia for reporting instances of waste, fraud, and abuse, together with a brief description of the uses and purposes of such number.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Quarterly reports on use of number</inline>.—</heading><content>Not later than 10 days after the end of such calendar quarter of each fiscal year (beginning with fiscal year 1998), the Inspector General of the District of Columbia shall submit a report to Congress on the number and nature of the calls received through the telephone number described in paragraph (1) during the quarter and on the waste, fraud, and abuse detected as a result of such calls.</content></paragraph> </section> <section><num value="156"><inline class="smallCaps">Sec</inline>. 156. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Notwithstanding any other provision of law (including any law or regulation providing for collective bargaining or the enforcement of any collective bargaining agreement) or collective bargaining agreement, any payment made by the District of Columbia after the expiration of the 45-day period which begins on the date of the enactment of this Act to any person shall be made by—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>direct deposit through electronic funds transfer to a checking, savings, or other account designated by the person; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>a check delivered through the United States Postal Service to the person’s place of residence or business.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Regulations</inline>.—</heading><content>The Chief Financial Officer of the District of Columbia is authorized to issue rules to carry out this section.</content></subsection> </section> <page identifier="/us/stat/111/2186">111 STAT. 2186</page> <section><num value="157"><inline class="smallCaps">Sec</inline>. 157. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Deposit of Annual Federal Contribution With Authority</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>The District of Columbia Financial Responsibility and Management Assistance Act of 1995, as amended by section 11601(b)(2) of the Balanced Budget Act of 1997, is amended by inserting after section 204 the following new section: <quotedContent> <section><num value="205">“SEC. 205. </num><heading>DEPOSIT OF ANNUAL FEDERAL CONTRIBUTION WITH AUTHORITY.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">Deposit into escrow account</inline>.—</heading><content>In the case of a fiscal year which is a control year, the Secretary of the Treasury shall deposit any Federal contribution to the District of Columbia for the year authorized under section 11601(c)(2) of the Balanced Budget Act of 1997 into an escrow account held by the Authority, which shall allocate the funds to the Mayor at such intervals and in accordance with such terms and conditions as it considers appropriate to implement the financial plan for the year. In establishing such terms and conditions, the Authority shall give priority to using the Federal contribution for cash flow management and the payment of outstanding bills owed by the District government.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">Exception for amounts withheld for advances</inline>.—</heading><content>Paragraph (1) shall not apply with respect to any portion of the Federal contribution which is withheld by the Secretary of the Treasury in accordance with section 605(b)(2) of title VI of the District of Columbia Revenue Act of 1939 to reimburse the Secretary for advances made under title VI of such Act.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><heading><inline class="smallCaps">Expenditure of Funds from Account in Accordance with Authority Instructions</inline>.—</heading><content>Any funds allocated by the Authority to the Mayor from the escrow account described in paragraph (1) may be expended by the Mayor only in accordance with the terms and conditions established by the Authority at the time the funds are allocated.”.</content></subsection> </section></quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Clerical amendment</inline>.—</heading><content>The table of contents for such Act is amended by inserting after the item relating to section 204 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 205. </designator><label>Deposit of annual Federal contribution with Authority.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendments made by this subsection shall take effect as if included in the enactment of the Balanced Budget Act of 1997.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Dishonored Check Collection</inline>.—</heading><chapeau>The Act entitled “<shortTitle role="act">An Act to authorize the Commissioners of the District of Columbia to prescribe penalties for the handling and collection of dishonored checks</shortTitle>”, approved September 28, 1965 (D.C. Code, sec. 1–357) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subsection (a) by inserting after the third sentence the following: “The Mayor may enter into a contract to collect the amount of the original obligation.”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following new subsections: <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>In a case in which the amount of a dishonored or unpaid check is collected as a result of a contract, the Mayor shall collect any costs or expenses incurred to collect such amount from such person who gives or causes to be given, in payment of any obligation or liability due the government of the District of Columbia, a check which is subsequently dishonored or not duly paid. In a <page identifier="/us/stat/111/2187">111 STAT. 2187</page> case in which the amount of a dishonored or unpaid check is collected as a result of an action at law or in equity, such costs and expenses shall include litigation expenses and attorney’s fees.</content></subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><chapeau>An action at law or in equity for the recovery of any amount owed to the District as a result of subsection (c), including any litigation expenses or attorney’s fees may be initiated—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>by the Corporation Counsel of the District of Columbia; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>in a case in which the Corporation Counsel does not exercise his or her authority, by the person who provides collection services as a result of a contract with the Mayor.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><content>Nothing in this section may be construed to eliminate the Mayor’s exclusive authority with respect to any obligations and liabilities of the District of Columbia.”.</content></subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Conforming References to Internal Revenue Code of 1986</inline>.—</heading><content>Section 4(28 A) of the District of Columbia Income and Franchise Act of 1947 (D.C. Code, sec. 47–1801.4(28A)) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="28A">“(28A) </num><content>The term ‘Internal Revenue Code of 1986’ means the Internal Revenue Code of 1986 (100 Stat. 2085; 26 U.S.C. 1 et seq.), as amended through August 20, 1996. The provisions of the Internal Revenue Code of 1986 shall be effective on the same dates that they are effective for Federal tax purposes.”.</content></subsection> </quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Standard for Review of Recommendations of Business Regulatory Reform Commission in Review of Regulations by Authority</inline>.—</heading><content>Section 11701(a)(1) of the Balanced Budget Act of 1997 is amended by striking the second sentence and inserting the following: “In carrying out such review, the Authority shall include an explicit reference to each recommendation made by the Business Regulatory Reform Commission pursuant to the Business Regulatory Reform Commission Act of 1994 (D.C. Code, sec. 2–4101 et seq.), together with specific findings and conclusions with respect to each such recommendation.”.</content></subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><heading><inline class="smallCaps">Technical Corrections Relating to Balanced Budget Act of 1997</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Effective as if included in the enactment of<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> the Balanced Budget Act of 1997, section 453(c) of the District of Columbia Home Rule Act (D.C. Code, sec. 47–304.1(c)), as amended by section 11243(d) of the Balanced Budget Act of 1997, is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>Subsection (a) shall not apply to amounts appropriated or otherwise made available to the Council, the District of Columbia Financial Responsibility and Management Assistance Authority established under section 101(a) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995, or the District of Columbia Water and Sewer Authority established pursuant to the Water and Sewer Authority Establishment and Department of Public Works Reorganization Act of 1996.”.</content></subsection> </quotedContent></content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>Section 11201(g)(2)(A)(ii) of the Balanced Budget Act of 1997 is amended—<sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 734</p></sidenote></chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>in the heading, by striking “<quotedText><inline class="smallCaps">Department of parks and recreation</inline></quotedText>” and inserting “<quotedText><inline class="smallCaps">parks authority</inline></quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking “<quotedText>Department of Parks and Recreation</quotedText>” and inserting “<quotedText>Parks Authority</quotedText>”.</content></subparagraph> </paragraph></subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><heading><inline class="smallCaps">Repeal of Prior Notice Requirement for Federal Activities Affecting Real Property in District of Columbia</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t40/s138">40 USC 138.</ref></p></sidenote> <page identifier="/us/stat/111/2188">111 STAT. 2188</page> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t40/s138">40 USC 138 note.</ref></p></sidenote><content>Effective October 1, 1997, the Balanced Budget Act of 1997 (Public Law 105–33) is amended by striking section 11715.</content> </subsection></section> <section><num value="158"><inline class="smallCaps">Sec</inline>. 158. </num><content>Notwithstanding any provision of any federally granted charter or any other provision of law, the real property of the National Education Association located in the District of Columbia shall be subject to taxation by the District of Columbia in the same manner as any similar organization.</content></section> <section><num value="159"><inline class="smallCaps">Sec</inline>. 159. </num><subsection class="inline"><num value="a">(a) </num><content>Section 501(c)(4) of the District of Columbia Police and Firemen’s Act of 1958 (D.C. Code, sec. 4–416(c)(4)) is amended by striking “<quotedText>locality pay</quotedText>” and inserting “<quotedText>longevity pay</quotedText>”.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote><content>The amendment made by subsection (a) is effective on the date of enactment of Public Law 105–61.</content></subsection></section> <section><num value="160"><inline class="smallCaps">Sec</inline>. 160. </num><content>In addition to amounts appropriated or otherwise made available, $3,000,000 is appropriated for the purpose of funding a Medicare Coordinated Care Demonstration Project in the District of Columbia as specified in section 4016(b)(2)(C) of the Balanced Budget Act of 1997.</content></section> <section><num value="161"><inline class="smallCaps">Sec</inline>. 161. </num><content>Nothing in this Act shall be construed to authorize any office, agency or entity to expend funds for programs or functions for which a reorganization plan is required but has not been approved by the District of Columbia Financial Responsibility and Management Assistance Authority (hereafter in this section referred to as “Authority”). Appropriations made by this Act for such programs or functions are conditioned only on the approval by the Authority of the required reorganization plans.</content></section> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396b">42 USC 1396b note.</ref></p></sidenote><section><num value="162"><inline class="smallCaps">Sec</inline>. 162. </num><content>Effective as if included in the enactment of subtitle J of title IV of the Balanced Budget Act of 1997 (Public Law 105–33) the Social Security Act is amended as follows:</content></section> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The fourth sentence of section 1905(b) of such Act (42 U.S.C. 1396d(b)) is amended by inserting “<quotedText>for the State for a fiscal year, and that do not exceed the amount of the State’s allotment under section 2104 (not taking into account reductions under section 2104(d)(2)) for the fiscal year reduced by the amount of ally payments made under section 2105 to the State from such allotment for such fiscal year,</quotedText>” after “subsection (u)(3)”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>Section 1905(u) of such Act (42 U.S.C. 1396d(u)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>in paragraph (1)(B), by striking “<quotedText>paragraph (2)</quotedText>” and inserting “<quotedText>the fourth sentence of subsection (b)</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>in paragraph (2)(A), by striking “<quotedText>(C), but not in excess</quotedText>” and all that follows up to the period at the end and inserting “<quotedText>(B)</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>by striking subparagraphs (B) and (C) of paragraph (2) and inserting the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>For purposes of this paragraph, the term 'optional targeted low-income child’ means a targeted low-income child as defined in section 2110(b)(1) (determined without regard to that portion of subparagraph (C) of such section concerning eligibility for medical assistance under this title) who would not qualify for medical assistance under the State plan under this title as in effect on March 31, 1997 (but taking into account the expansion of age of eligibility effected through the operation of section 1902(l)(1)(D)).”;</content></subparagraph> </quotedContent></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><chapeau>in paragraph (3)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>by striking “<quotedText>described in this subparagraph</quotedText>” and inserting “<quotedText>described in this paragraph</quotedText>”; and</content></clause> <page identifier="/us/stat/111/2189">111 STAT. 2189</page> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>by striking “<quotedText>April 15, 1997</quotedText>” and inserting “<quotedText>March 31, 1997</quotedText>”; and</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E) </num><content>by adding at the end the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>The limitations on payment under subsections (f) and (g) of section 1108 shall not apply to Federal payments made under section 1903(a)(1) based on an enhanced FMAP described in section 2105(b).”.</content></paragraph> </quotedContent></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><chapeau>Section 2110(b) of such Act (42 U.S.C. 1397jj(b)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>in paragraph (1)(B)(ii) to read as follows: <quotedContent> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><chapeau>is a child—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I) </num><content>whose family income (as determined under the State child health plan) exceeds the medicaid applicable income level (as defined in paragraph (4)), but does not exceed 50 percentage points above the medicaid applicable income level;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II) </num><content>whose family income (as so determined) does not exceed the medicaid applicable income level (as defined in paragraph (4) but determined as if ‘June 1, 1997’ were substituted for ‘March 31, 1997’); or</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III) </num><content>who resides in a State that does not have a medicaid applicable income level (as defined in paragraph (4)); and”; and</content></subclause> </clause></quotedContent></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><chapeau>in paragraph (4)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>by striking “<quotedText>June 1, 1997</quotedText>” and inserting “<quotedText>March 31, 1997</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>by inserting “<quotedText>or 1905(n)(2) (as selected by a State)</quotedText>” after “1902(1)(2)”</content></clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Section 1903(f)(4) of such Act (42 U.S.C. 1396b(f)(4)) is amended by striking “<quotedText>or 1905(p)(1)</quotedText>” and inserting “<quotedText>1905(p)(1), or 1905(u)</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Section 2105(c)(2)(A) of such Act (42 U.S.C. 1397ee(c)(2)(A)) is amended to read as follows— <quotedContent> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Except as provided in this paragraph, payment shall not be made under subsection (a) for expenditures for items described in subsection (a) (other than paragraph (1)) for a fiscal year to the extent the total of such expenditures (for which payment is made under such subsection) exceeds 10 percent of the sum of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>the total of such expenditures for such fiscal year, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>the total expenditures for medical assistance by the State under title XIX for which Federal payments made under section 1903(a)(1) are based on an enhanced FMAP described in section 2105(b) for such fiscal year.”.</content></clause> </subparagraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><chapeau>Section 2104 of such Act (42 U.S.C. 1397dd) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>in subsection (d)(1), by striking “<quotedText>for calendar quarters</quotedText>” and inserting “<quotedText>for expenditures claimed by the State</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking subsection (d)(2) and inserting the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>the amount (if any) of the payments made to that State under section 1903(a) for expenditures claimed by the State during such fiscal year that is attributable to the provision of medical assistance to a child for which payment is <page identifier="/us/stat/111/2190">111 STAT. 2190</page> made under section 1903(a)(1) on the basis of an enhanced FMAP under the fourth sentence of section 1905(b).”.</content></paragraph> </quotedContent></content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>Section 2105 of such Act (42 U.S.C. 1397ee) is amended by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><heading><inline class="smallCaps">Flexibility in Submittal of Claims</inline>.—</heading><content>Nothing in this section or subsections (e) and (f) of section 2104 shall be construed as preventing a State from claiming as expenditures in the quarter expenditures that were incurred in a previous quarter.”.</content></subsection> </quotedContent></content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><chapeau>Section 2104 of such Act (42 U.S.C. 1397dd) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>in subsection (a)(1), by striking “<quotedText>$4,275,000,000</quotedText>” and inserting “<quotedText>$4,295,000,000</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>in subsection (b)(4), by striking “<quotedText>Subject to paragraph (5), in</quotedText>” and inserting “In , and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><chapeau>in subsection (c)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>in paragraph (2)(C), by inserting “<quotedText>the</quotedText>” before “Virgin Islands”, and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>in paragraphs (3)(C) and (3)(E), by striking “<quotedText>the</quotedText>” and inserting “<quotedText>The</quotedText>”.</content></clause> </subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><content>Section 2110(c)(3) of such Act (42 U.S.C. 1397jj(c)(3)) is amended by striking “<quotedText>2191</quotedText>” and inserting “<quotedText>2791</quotedText>”.</content></paragraph> <section><num value="163"><inline class="smallCaps">Sec</inline>. 163. </num><content>The Administrator of General Services is authorized to amend the use restriction contained in the Administrator’s 1956 conveyance of land to the City of Bonham, Texas, mandated by Public Law 586 of the 84th Congress. The amended use restriction will limit the property to State veterans, nursing homes and public safety communications purposes only.</content></section> <section><num value="164"><inline class="smallCaps">Sec</inline>. 164. </num><content>Notwithstanding any other provision of law, rule, or regulation, the evaluation process and instruments for evaluating District of Columbia public schools employees shall be a non-negotiable item for collective bargaining purposes.</content></section> <section><num value="165"><inline class="smallCaps">Sec</inline>. 165. </num><content>There are appropriated from such funds of the District of Columbia, as are deemed appropriate by the District of Columbia Financial Responsibility and Management Assistance Authority, $2,600,000, for the Fire and Emergency Medical Services Department for a 5 percent pay increase for uniformed firefighters.</content></section> <section><num value="166"><inline class="smallCaps">Sec</inline>. 166. </num><content>Notwithstanding any other provision of Federal or District of Columbia law applicable to a reemployed annuitant’s entitlement to retirement or pension benefits, the Director of the Office of Personnel Management may waive the provisions of section 8344 of title 5 of the United States Code for any reemployed annuitants appointed heretofore or hereafter as a Trustee under section 11202 or 11232 of the National Capital Revitalization and Self-Government Improvement Act of 1997, or, at the request of such a Trustee, for any employee of such Trustee.</content></section> <section><num value="167"><inline class="smallCaps">Sec</inline>. 167. </num><content>Section 2203(i)(2)(A) of the District of Columbia School Reform Act of 1995 (Public Law 104–134; 110 Stat. 3009504; D.C. Code 31–2853.13(i)(2)(A)) is amended to read as follows: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><heading><inline class="smallCaps">In general</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i) </num><heading><inline class="smallCaps">Annual limit</inline>.—</heading><content>Subject to subparagraph (B) and clause (ii), during calendar year 1997, and during each subsequent calendar year, each eligible chartering authority shall not approve more than 10 petitions to establish a public charter school under this subtitle.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><heading><inline class="smallCaps">Timetable</inline>.—</heading><content>Any petition approved under clause (i) shall be approved during an application approval period that terminates on April 1 of each year. Such an approval <page identifier="/us/stat/111/2191">111 STAT. 2191</page> period may commence before or after January 1 of the calendar year in which it terminates, except that any petition approved at any time during such an approval period shall count, for purposes of clause (i), against the total number of petitions approved during the calendar year in which the approval period terminates.”.</content></clause> </subparagraph> </quotedContent></content></section> <section><num value="168"><inline class="smallCaps">Sec</inline>. 168. </num><content>Section 2205(a) of the District of Columbia School Reform Act of 1995 (Public Law 104–134; 110 Stat. 1321–122; D.C. Code 31–2853.15(a)) is amended by striking “<quotedText>7,</quotedText>” and inserting “<quotedText>15,</quotedText>”.</content></section> <section><num value="169"><inline class="smallCaps">Sec</inline>. 169. </num><content>Section 2214(g) of the District of Columbia School Reform Act of 1995 (Public Law 104–134; 110 Stat. 1321–133; D.C. Code 31–2853.24(g)) is amended by inserting “<quotedText>to the Board</quotedText>” after “appropriated”.</content></section> <section><num value="170"><inline class="smallCaps">Sec</inline>. 170. </num><chapeau>Section 2401(b)(3)(B) of the District of Columbia School Reform Act of 1995 (Public Law 104–134; 110 Stat. 1321137; D.C. Code 31–2853.41(b)(3)(B)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in clause (i), by striking “or”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in clause (ii), by striking the period at the end and inserting “<quotedText>; or</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by adding at the end the following: <quotedContent> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><content>to whom the school provides room and board in a residential setting.”.</content></clause> </quotedContent> </content></paragraph> </section> <section><num value="171"><inline class="smallCaps">Sec</inline>. 171. </num><content>Section 2401(b)(3) of the District of Columbia School Reform Act of 1995 (Public Law 104–134; 110 Stat. 1321–137; D.C. Code 31–2853.41(b)(3)) is amended by adding at the end the following: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><heading><inline class="smallCaps">Adjustment for facilities costs</inline>.—</heading><content>Notwithstanding paragraph (2), the Mayor and the District of Columbia Council, in consultation with the Board of Education and the Superintendent, shall adjust the amount of the annual payment under paragraph (1) to increase the amount of such payment for a public charter school to take into account leases or purchases of, or improvements to, real property, if the school, not later than April 1 of the fiscal year preceding the payment, requests such an adjustment.”.</content></subparagraph> </quotedContent></content></section> <section><num value="172"><inline class="smallCaps">Sec</inline>. 172. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Payments to New Charter Schools</inline>.—</heading><content>Section 2403(b) of the District of Columbia School Reform Act of 1995 (Public Law 104–134; 110 Stat. 1321–140; D.C. Code 31–2853.43(b)) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><heading><inline class="smallCaps">Payments to New Schools</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">Establishment of fund</inline>.—</heading><content>There is established in the general hind of the District of Columbia a fund to be known as the ‘New Charter School Fund’.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">Contents of fund</inline>.—</heading><chapeau>The New Charter School Fund shall consist of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>unexpended and unobligated amounts appropriated from local funds for public charter schools for fiscal year 1997 and subsequent fiscal years that reverted to the general fund of the District of Columbia;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>amounts credited to the fund in accordance with this subsection upon the receipt by a public charter school described in paragraph (5) of its first initial payment under subsection (a)(2)(A) or its first final payment under subsection (a)(2)(B); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>any interest earned on such amounts.</content></subparagraph> </paragraph> <page identifier="/us/stat/111/2192">111 STAT. 2192</page> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><heading><inline class="smallCaps">Expenditures from fund</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>Not later than June 1, 1998, and not later than June 1 of each year thereafter, the Chief Financial Officer of the District of Columbia shall pay, from the New Charter School Fund, to each public charter school described in paragraph (5), an amount equal to 25 percent of the amount yielded by multiplying the uniform dollar amount used in the formula established under section 2401(b) by the total anticipated enrollment as set forth in the petition to establish the public charter school.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><heading><inline class="smallCaps">Pro rata reduction</inline>.—</heading><content>If the amounts in the New Charter School Fund for any year are insufficient to pay the full amount that each public charter school described in paragraph (5) is eligible to receive under this subsection for such year, the Chief Financial Officer of the District of Columbia shall ratably reduce such amounts for such year on the basis of the formula described in section 2401(b).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><heading><inline class="smallCaps">Form of payment</inline>.—</heading><content>Payments under this subsection shall be made by electronic funds transfer from the New Charter School Fund to a bank designated by a public charter school.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><heading><inline class="smallCaps">Credits to fund</inline>.—</heading><chapeau>Upon the receipt by a public charter school described in paragraph (5) of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>its first initial payment under subsection (a)(2)(A), the Chief Financial Officer of the District of Columbia shall credit the New Charter School Fund with 75 percent of the amount paid to the school under paragraph (3); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>its first final payment under subsection (a)(2)(B), the Chief Financial Officer of the District of Columbia shall credit the New Charter School Fund with 25 percent of the amount paid to the school under paragraph (3).</content></subparagraph> </paragraph><paragraph class="indent1 fontsize10"><num value="5">“(5) </num><heading><inline class="smallCaps">Schools described</inline>.—</heading><chapeau>A public charter school described in this paragraph is a public charter school that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>did not enroll any students during any portion of the fiscal year preceding the most recent fiscal year for which funds are appropriated to carry out this subsection; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>operated as a public charter school during the most recent fiscal year for which funds are appropriated to carry out this subsection.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6) </num><heading><inline class="smallCaps">Authorization of appropriations</inline>.—</heading><content>There are authorized to be appropriated to the Chief Financial Officer of the District of Columbia such sums as may be necessary to carry out this subsection for each fiscal year.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> </section> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Reduction of Annual Payment</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Initial payment</inline>.—</heading><content>Section 2403(a)(2)(A) of the District of Columbia School Reform Act (Public Law 104–134; 110 Stat. 1321–139; D.C. Code 31–2853.43(a)(2)(A)) is amended to read as follows: <quotedContent> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><heading><inline class="smallCaps">Initial payment</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>Except as provided in clause (ii), not later than October 15, 1996, and not later than October 15 of each year thereafter, the Mayor shall transfer, by electronic funds transfer, an amount <page identifier="/us/stat/111/2193">111 STAT. 2193</page> equal to 75 percent of the amount of the annual payment for each public charter school determined by using the formula established pursuant to section 2401(b) to a bank designated by such school.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><heading><inline class="smallCaps">Reduction in case of new school</inline>.—</heading><content>In the case of a public charter school that has received a payment under subsection (b) in the fiscal year immediately preceding the fiscal year in which a transfer under clause (i) is made, the amount transferred to the school under clause (i) shall be reduced by an amount equal to 75 percent of the amount of the payment under subsection (b).”.</content></clause> </subparagraph></quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Final payment</inline>.—</heading><chapeau>Section 2403(a)(2)(B) of the District of Columbia School Reform Act (Public Law 104–134; 110 Stat. 1321–139; D.C. Code 31–2853.43(a)(2)(B)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><chapeau>in clause (i)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>by inserting “<quotedText><inline class="smallCaps">In general</inline>.—</quotedText>” before “Except”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>by striking “<quotedText>clause (ii),</quotedText>” and inserting “<quotedText>clauses (ii) and (iii),</quotedText>”;</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>in clause (ii), by inserting “<quotedText><inline class="smallCaps">Adjustment for enrollment</inline>.—</quotedText>” before “Not later than March 15, 1997,”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>by adding at the end the following: <quotedContent> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><heading><inline class="smallCaps">Reduction in case of new school</inline>.—</heading><content>In the case of a public charter school that has received a payment under subsection (b) in the fiscal year immediately preceding the fiscal year in which a transfer under clause (i) is made, the amount transferred to the school under clause (i) shall be reduced by an amount equal to 25 percent of the amount of the payment under subsection (b).”.</content></clause> </quotedContent> </content></subparagraph> </paragraph> <continuation class="indent1 firstIndent1 fontsize10">This title may be cited as the “<shortTitle role="title">District of Columbia Appropriations Act, 1998</shortTitle>”.</continuation> </subsection> </section> </level> <num value="II">TITLE II—</num><heading>CLARIFICATION OF ELIGIBILITY FOR RELIEF FROM REMOVAL AND DEPORTATION FOR CERTAIN ALIENS</heading><sidenote><p class="indent0 firstIndent0 fontsize8">Nation's Capital Bicentennial Designation Act.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1101">8 USC 1101 note.</ref></p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1255">8 USC 1255 note.</ref></p></sidenote> <section><num value="201"><inline class="smallCaps">Sec</inline>. 201. </num><heading><inline class="smallCaps">Short Title</inline>.—</heading><content class="inline">This title may be cited as the “<shortTitle role="title">Nicaraguan Adjustment and Central American Relief Act</shortTitle>”.</content></section> <section><num value="202"><inline class="smallCaps">Sec</inline>. 202. </num><heading><inline class="smallCaps">Adjustment of Status of Certain Nicaraguans and Cubans.</inline> </heading><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Adjustment of Status</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Notwithstanding section 245(c) of the Immigration and Nationality Act, the status of any alien described in subsection (b) shall be adjusted by the Attorney General to that of an alien lawfully admitted for permanent residence, if the alien—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>applies for such adjustment before April 1, 2000; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>is otherwise eligible to receive an immigrant visa and is otherwise admissible to the United States for permanent residence, except in determining such admissibility the grounds for inadmissibility specified in paragraphs (4), (5), (6)(A), and (7)(A) of section 212(a) of the Immigration and Nationality Act shall not apply.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Relationship of application to certain orders</inline>.—</heading><content>An alien present in the United States who has been ordered <page identifier="/us/stat/111/2194">111 STAT. 2194</page> excluded, deported, removed, or ordered to depart voluntarily from the United States under any provision of the Immigration and Nationality Act may, notwithstanding such order, apply for adjustment of status under paragraph (1). Such an alien may not be required, as a condition of submitting or granting such application, to file a separate motion to reopen, reconsider, or vacate such order. If the Attorney General grants the application, the Attorney General shall cancel the order. If the Attorney General renders a final administrative decision to deny the application, the order shall be effective and enforceable to the same extent as if the application had not been made.</content></paragraph> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Aliens Eligible for Adjustment of Status</inline>.—</heading></subsection> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>The benefits provided by subsection (a) shall apply to any alien who is a national of Nicaragua or Cuba and who has been physically present in the United States for a continuous period, beginning not later than December 1, 1995, and ending not earner than the date the application for adjustment under such subsection is filed, except an alien shall not be considered to have failed to maintain continuous physical presence by reason of an absence, or absences, from the United States for any periods in the aggregate not exceeding 180 days.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Proof of commencement of continuous presence</inline>.—</heading><chapeau>For purposes of establishing that the period of continuous physical presence referred to in paragraph (1) commenced not later than December 1, 1995, an alien—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><chapeau>shall demonstrate that the alien, prior to December 1, 1995—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>applied to the Attorney General for asylum;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>was issued an order to show cause under section 242 or 242B of the Immigration and Nationality Act (as in effect prior to April 1, 1997);</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii) </num><content>was placed in exclusion proceedings under section 236 of such Act (as so in effect);</content></clause> <clause class="indent3 fontsize10"><num value="iv">(iv) </num><content>applied for adjustment of status under section 245 of such Act;</content></clause> <clause class="indent3 fontsize10"><num value="v">(v) </num><content>applied to the Attorney General for employment authorization;</content></clause> <clause class="indent3 fontsize10"><num value="vi">(vi) </num><content>performed service, or engaged in a trade or business, within the United States which is evidenced by records maintained by the Commissioner of Social Security; or</content></clause> <clause class="indent3 fontsize10"><num value="vii">(vii) </num><content>applied for any other benefit under the Immigration and Nationality Act by means of an application establishing the alien’s presence in the United States prior to December 1, 1995; or</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>shall make such other demonstration of physical presence as the Attorney General may provide for by regulation.</content></subparagraph> </paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Stay of Removal; Work Authorization</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>The Attorney General shall provide by regulation for an alien subject to a final order of deportation or removal to seek a stay of such order based on the filing of an application under subsection (a).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">During certain proceedings</inline>.—</heading><content>Notwithstanding any provision of the Immigration and Nationality Act, the Attorney General shall not order any alien to be removed from the <page identifier="/us/stat/111/2195">111 STAT. 2195</page> United States, if the alien is in exclusion, deportation, or removal proceedings under any provision of such Act and has applied for adjustment of status under subsection (a), except where the Attorney General has rendered a final administrative determination to deny the application.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Work authorization</inline>.—</heading><content>The Attorney General may authorize an alien who has applied for adjustment of status under subsection (a) to engage in employment in the United States during the pendency of such application and may provide the alien with an “employment authorized” endorsement or other appropriate document signifying authorization of employment, except that if such application is pending for a period exceeding 180 days, and has not been denied, the Attorney General shall authorize such employment.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Adjustment of Status for Spouses and Children</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Notwithstanding section 245(c) of the Immigration and Nationality Act, the status of an alien shall be adjusted by the Attorney General to that of an alien lawfully admitted for permanent residence, if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the alien is a national of Nicaragua or Cuba;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the alien is the spouse, child, or unmarried son or daughter, of an alien whose status is adjusted to that of an alien lawfully admitted for permanent residence under subsection (a), except that in the case of such an unmarried son or daughter, the son or daughter shall be required to establish that they have been physically present in the United States for a continuous period, beginning not later than December 1, 1995, and ending not earlier than the date the application for adjustment under this subsection is filed;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>the alien applies for such adjustment and is physically present in the United States on the date the application is filed;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>the alien is otherwise eligible to receive an immigrant visa and is otherwise admissible to the United States for permanent residence, except in determining such admissibility the grounds for exclusion specified in paragraphs (4), (5), (6)(A), and (7)(A) of section 212(a) of the Immigration and Nationality Act shall not apply; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E) </num><content>applies for such adjustment before April 1, 2000.</content></subparagraph> </paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Proof of continuous presence</inline>.—</heading><chapeau>For purposes of establishing the period of continuous physical presence referred to in paragraph (1)(B), an alien—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>shall demonstrate that such period commenced not later than December 1, 1995, in a manner consistent with subsection (b)(2); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>shall not be considered to have failed to maintain continuous physical presence by reason of an absence, or absences, from the United States for any period in the aggregate not exceeding 180 days.</content></subparagraph> </paragraph></subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><heading><inline class="smallCaps">Availability of Administrative Review</inline>.—</heading><chapeau>The Attorney General shall provide to applicants for adjustment of status under subsection (a) the same right to, and procedures for, administrative review as are provided to—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>applicants for adjustment of status under section 245 of the Immigration and Nationality Act; or</content></paragraph> <page identifier="/us/stat/111/2196">111 STAT. 2196</page> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>aliens subject to removal proceedings under section 240 of such Act.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><heading><inline class="smallCaps">Limitation on Judicial Review</inline>.—</heading><content>A determination by the Attorney General as to whether the status of any alien should be adjusted under this section is final and shall not be subject to review by any court.</content></subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><heading><inline class="smallCaps">No Offset in Number of Visas Available</inline>.—</heading><content>When an alien is granted the status of having been lawfully admitted for permanent residence pursuant to this section, the Secretary of State shall not be required to reduce the number of immigrant visas authorized to be issued under any provision of the Immigration and Nationality Act.</content></subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num><heading><inline class="smallCaps">Application of Immigration and Nationality Act Provisions</inline>.—</heading><content>Except as otherwise specifically provided in this section, the definitions contained in the Immigration and Nationality Act shall apply in the administration of this section. Nothing contained in this section shall be held to repeal, amend, alter, modify, affect, or restrict the powers, duties, functions, or authority of the Attorney General in the administration and enforcement of such Act or any other law relating to immigration, nationality, or naturalization. The fact that an alien may be eligible to be granted the status of having been lawfully admitted for permanent residence under this section shall not preclude the alien from seeking such status under any other provision of law for which the alien may be eligible.</content></subsection> </section> <section><num value="203"><inline class="smallCaps">Sec</inline>. 203. </num><heading><inline class="smallCaps">Modification of Certain Transition Rules.</inline> </heading><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Transitional Rules with Regard to Suspension of Deportation</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 309(c)(5) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (Public <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1101">8 USC 1101 note.</ref></p></sidenote>Law 104–208; division C; 110 Stat. 3009–627) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><heading><inline class="smallCaps">Transitional rules with regard to suspension of deportation</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>Subject to subparagraphs (B) and (C), paragraphs (1) and (2) of section 240A(d) of the Immigration and Nationality Act (relating to continuous residence or physical presence) shall apply to orders to show cause (including those referred to in section 242B(a)(l) of the Immigration and Nationality Act, as in effect before the title III–A effective date), issued before, on, or after the date of the enactment of this Act.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><heading><inline class="smallCaps">Exception for certain orders</inline>.—</heading><content>In any case in which the Attorney General elects to terminate and reinitiate proceedings in accordance with paragraph (3) of this subsection, paragraphs (1) and (2) of section 240A(d) of the Immigration and Nationality Act shall not apply to an order to show cause issued before April 1, 1997.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><heading><inline class="smallCaps">Special rule for certain aliens granted temporary protection from deportation</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i) </num><heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>For purposes of calculating the period of continuous physical presence under section 244(a) of the Immigration and Nationality Act (as in effect before the title III–A effective date) or section 240A of such Act (as in effect after the title III–A effective date), subparagraph (A) and paragraphs (1) and (2) of section 240A(d) of the Immigration and <page identifier="/us/stat/111/2197">111 STAT. 2197</page>Nationality Act shall not apply in the case of an alien, regardless of whether the alien is in exclusion or deportation proceedings before the title III–A effective date, who has not been convicted at any time of an aggravated felony (as defined in section 101(a) of the Immigration and Nationality Act) and—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I) </num><chapeau>was not apprehended after December 19, 1990, at the time of entry, and is—</chapeau> <item class="indent5 fontsize10"><num value="aa">“(aa) </num><content>a Salvadoran national who first entered the United States on or before September 19, 1990, and who registered for benefits pursuant to the settlement agreement in American Baptist Churches, et al. v. Thornburgh (ABC), 760 F Supp. 796 (N.D. Cal. 1991) on or before October 31, 1991, or applied for temporary protected status on or before October 31, 1991; or</content></item> <item class="indent5 fontsize10"><num value="bb">“(bb) </num><content>a Guatemalan national who first entered the United States on or before October 1, 1990, and who registered for benefits pursuant to such settlement agreement on or before December 31, 1991;</content></item> </subclause> <subclause class="indent4 fontsize10"><num value="II">“(II) </num><content>is a Guatemalan or Salvadoran national who filed an application for asylum with the Immigration and Naturalization Service on or before April 1, 1990;</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III) </num><content>is the spouse or child (as defined in section 101(b)(1) of the Immigration and Nationality Act) of an individual, at the time a decision is rendered to suspend the deportation, or cancel the removal, of such individual, if the individual has been determined to be described in this clause (excluding this subclause and subclause (IV));</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV) </num><chapeau>is the unmarried son or daughter of an alien parent, at the time a decision is rendered to suspend the deportation, or cancel the removal, of such alien parent, if—</chapeau> <item class="indent5 fontsize10"><num value="aa">“(aa) </num><content>the alien parent has been determined to be described in this clause (excluding this subclause and subclause (III)); and</content></item> <item class="indent5 fontsize10"><num value="bb">“(bb) </num><content>in the case of a son or daughter who is 21 years of age or older at the time such decision is rendered, the son or daughter entered the United States on or before October 1, 1990; or</content></item></subclause> <subclause class="indent4 fontsize10"><num value="V">“(V) </num><content>is an alien who entered the United States on or before December 31, 1990, who filed an application for asylum on or before December 31, 1991, and who, at the time of filing such application, was a national of the Soviet Union, Russia, any republic of the former Soviet Union, Latvia, Estonia, Lithuania, Poland, Czechoslovakia, Romania, Hungary, Bulgaria, Albania, East Germany, Yugoslavia, or any state of the former Yugoslavia.</content> </subclause></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><heading><inline class="smallCaps">Limitation on judicial review</inline>.—</heading><content>A determination by the Attorney General as to whether an alien satisfies the requirements of this clause (i) is <page identifier="/us/stat/111/2198">111 STAT. 2198</page>final and shall not be subject to review by any court. Nothing in the preceding sentence shall be construed as limiting the application of section 242(a)(2)(B) of the Immigration and Nationality Act (as in effect after the title III–A effective date) to other eligibility determinations pertaining to discretionary relief under this Act”.</content></clause> </subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>Subsection (c) of section 309 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (Public Law 104–208; division C; 110 Stat. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1101">8 USC 1101 note.</ref></p></sidenote>3009–625) is amended by striking the subsection designation and the subsection heading and inserting the following: <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><heading><inline class="smallCaps">Transition for Certain Aliens</inline>.—”.</heading></subsection> </quotedContent></content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Special Rule for Cancellation of Removal</inline>.—</heading><content>Section 309 of the Illegal Immigration Reform and Immigrant Responsibility <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1101">8 USC 1101 note.</ref></p></sidenote>Act of 1996 (Public Law 104–208; 110 Stat. 3009–625) is amended by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><heading><inline class="smallCaps">Special Rule for Cancellation of Removal</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Subject to the provisions of the Immigration and Nationality Act (as in effect after the title III–A effective date), other than subsections (b)(1), (d)(1), and (e) of section 240A of such Act (but including section 242(a)(2)(B) of such Act), the Attorney General may, under section 240A of such Act, cancel removal of, and adjust to the status of an alien lawfully admitted for permanent residence, an alien who is inadmissible or deportable from the United States, if the alien applies for such relief, the alien is described in subsection (c)(5)(C)(i) of this section, and—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><chapeau>the alien—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>is not inadmissible or deportable under paragraph (2) or (3) of section 212(a) or paragraph (2), (3), or (4) of section 237(a) of the Immigration and Nationality Act and is not an alien described in section 241(b)(3)(B)(i) of such Act;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>has been physically present in the United States for a continuous period of not less than 7 years immediately preceding the date of such application;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><content> has been a person of good moral character during such period; and</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv) </num><content>establishes that removal would result in extreme hardship to the alien or to the alien’s spouse, parent, or child, who is a citizen of the United States or an alien lawfully admitted for permanent residence; or</content></clause> </subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><chapeau>the alien—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>is inadmissible or deportable under section 212(a)(2), 237(a)(2) (other than 237(a)(2)(A)(iii)), or 237(a)(3) of the Immigration and Nationality Act;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>is not an alien described in section 241(b)(3)(B)(i) or 101(a)(43) of such Act;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><content>has been physically present in the United States for a continuous period of not less than 10 years immediately following the commission of an act, or the assumption of a status, constituting a ground for removal;</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv) </num><content>has been a person of good moral character during such period; and</content></clause> <page identifier="/us/stat/111/2199">111 STAT. 2199</page> <clause class="indent3 fontsize10"><num value="v">“(v) </num><content>establishes that removal would result in exceptional and extremely unusual hardship to the alien or to the alien’s spouse, parent, or child, who is a citizen of the United States or an alien lawfully admitted for permanent residence.</content></clause> </subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">Treatment of certain breaks in presence</inline>.—</heading><content>Section<sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> 240A(d)(2) shall apply for purposes of calculating any period of continuous physical presence under this subsection, except that the reference to subsection (b)(1) in such section shall be considered to be a reference to paragraph (1) of this section.”.</content></paragraph> </subsection> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Motions To Reopen Deportation or Removal Proceedings</inline>.—</heading><content>Section 309 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (Public Law 104–208; 110 Stat. 3009–625), as amended by subsection (b), is further amended<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1101">8 USC 1101 note.</ref></p></sidenote> by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"><num value="g">“(g) </num><heading><inline class="smallCaps">Motions To Reopen Deportation or Removal Proceedings</inline>.—</heading><content>Notwithstanding any limitation imposed by law on motions to reopen removal or deportation proceedings (except limitations premised on an alien’s conviction of an aggravated felony (as defined in section 101(a) of the Immigration and Nationality Act)), any alien who has become eligible for cancellation of removal or suspension of deportation as a result of the amendments made by section 203 of the Nicaraguan Adjustment and Central American Relief Act may file one motion to reopen removal or deportation proceedings to apply for cancellation of removal or suspension of deportation. The Attorney General shall designate a specific time period in which all such motions to reopen are required to be filed. The period shall begin not later than 60 days after the date of the enactment of the Nicaraguan Adjustment and Central American Relief Act and shall extend for a period not to exceed 240 days.”.</content></subsection> </quotedContent></content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Temporary Reduction in Diversity Visas</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1151">8 USC 1151 note.</ref></p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Beginning in fiscal year 1999, subject to paragraph (2), the number of visas available for a fiscal year under section 201(e) of the Immigration and Nationality Act shall be reduced by 5,000 from the number of visas available under that section for such fiscal year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>In no case shall the reduction under paragraph (1) for a fiscal year exceed the amount by which—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>one-half of the total number of individuals described in subclauses (I), (II), (III), and (IV) of section 309(c)(5)(C) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 who have adjusted their status to that of aliens lawfully admitted for permanent residence under the Nicaraguan Adjustment and Central American Relief Act as of the end of the previous fiscal year exceeds—</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the total of the reductions in available visas under this subsection for all previous fiscal years.</content></subparagraph> </paragraph></subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><heading><inline class="smallCaps">Temporary Reduction in Other Workers’ Visas</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1153">8 USC 1153 note.</ref></p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Beginning in the fiscal year following the fiscal year in which a visa has been made available under section 203(b)(3)(A)(iii) of the Immigration and Nationality Act for all aliens who are the beneficiary of a petition approved under section 204 of such Act as of the date of the enactment of this Act for classification under section 203(b)(3)(A)(iii) of such Act, subject to paragraph (2), visas available under section 203(b)(3)(A)(iii) of that Act shall be reduced by 5,000 from <page identifier="/us/stat/111/2200">111 STAT. 2200</page>the number of visas otherwise available under that section for such fiscal year.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>In no case shall the reduction under paragraph (1) for a fiscal year exceed the amount by which—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the number computed under subsection (d)(2)(A), exceeds—</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the total of the reductions in available visas under this subsection for all previous fiscal years.</content></subparagraph> </paragraph></subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1101">8 USC 1101 note.</ref></p></sidenote><heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section to the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 shall take effect as if included in the enactment of such Act.</content></subsection> </section> <section><num value="204"><inline class="smallCaps">Sec</inline>. 204. </num><heading><inline class="smallCaps">Limitation on Cancellations of Removal and Suspensions of Deportation</inline>.</heading><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Annual Limitation</inline>.—</heading><content>Section 240A(e) of the Immigration and Nationality Act (8 U.S.C. 1229b(e)) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><heading><inline class="smallCaps">Annual Limitation</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">Aggregate limitation</inline>.—</heading><content>Subject to paragraphs (2) and (3), the Attorney General may not cancel the removal and adjust the status under this section, nor suspend the deportation and adjust the status under section 244(a) (as in effect before the enactment of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996), of a total of more than 4,000 aliens in any fiscal year. The previous sentence shall apply regardless of when an alien applied for such cancellation and adjustment, or such suspension and adjustment, and whether such an alien had previously applied for suspension <sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote>of deportation under such section 244(a). The numerical limitation under this paragraph shall apply to the aggregate number of decisions in any fiscal year to cancel the removal (and adjust the status) of an alien, or suspend the deportation (and adjust the status) of an alien, under this section or such section 244(a).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">Fiscal year 1997</inline>.—</heading><content>For fiscal year 1997, paragraph (1) shall only apply to decisions to cancel the removal of an alien, or suspend the deportation of an alien, made after April 1, 1997. Notwithstanding any other provision of law, the Attorney General may cancel the removal or suspend the deportation, in addition to the normal allotment for fiscal year 1998, of a number of aliens equal to 4,000 less the number of such cancellations of removal and suspensions of deportation granted in fiscal year 1997 after April 1, 1997.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><heading><inline class="smallCaps">Exception for certain aliens</inline>.—</heading><chapeau>Paragraph (1) shall not apply to the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>Aliens described in section 309(c)(5)(C)(i) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (as amended by the Nicaraguan Adjustment and Central American Relief Act).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>Aliens in deportation proceedings prior to April 1, 1997, who applied for suspension of deportation under section 244(a)(3) (as in effect before the date of the enactment of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996).”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></subsection> <page identifier="/us/stat/111/2201">111 STAT. 2201</page> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Cancellation of Removal and Adjustment of Status for Certain Nonpermanent Residents</inline>.—</heading><content>Section 240A(b) of the Immigration and Nationality Act (8 U.S.C. 1229b(b)) is amended in each of paragraphs (1) and (2) by striking “<quotedText>may cancel removal in the case of an alien</quotedText>” and inserting “<quotedText>may cancel removal of, and adjust to the status of an alien lawfully admitted for permanent residence, an alien</quotedText>”.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Recordation of Date</inline>.—</heading><content>Section 240A(b)(3) of the Immigration and Nationality Act (8 U.S.C. 1229b(b)(3)) is amended to read as follows: <quotedContent> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><heading><inline class="smallCaps">Recordation of date</inline>.—</heading><content>With respect to aliens who the Attorney General adjusts to the status of an alien lawfully admitted for permanent residence under paragraph (1) or (2), the Attorney General shall record the alien’s lawful admission for permanent residence as of the date of the Attorney General’s cancellation of removal under paragraph (1) or (2).”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">April 1 Effective Date for Aggregate Limitation</inline>.—</heading><content>Section 309(c)(7) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (Public Law 104–208; division C; 110 Stat. 3009–627) is amended to read as follows:<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1101">8 USC 1101 note.</ref></p></sidenote> <quotedContent> <paragraph class="indent1 fontsize10"><num value="7">“(7) </num><heading><inline class="smallCaps">Limitation on suspension of deportation</inline>.—</heading><content>After April 1, 1997, the Attorney General may not suspend the deportation and adjust the status under section 244 of the Immigration and Nationality Act (as in effect before the title III–A effective date) of any alien in any fiscal year, except in accordance with section 240A(e) of such Act. The previous sentence shall apply regardless of when an alien applied for such suspension and adjustment.”.</content></paragraph> </quotedContent> </content></subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1229b">8 USC 1229b note.</ref></p></sidenote> shall take effect as if included in the enactment of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (Public Law 104–208; 110 Stat. 3009–546).</content></subsection> </section> Approved November 19, 1997.
LEGISLATIVE HISTORY—H.R. 2607 S. 1156: HOUSE REPORTS: No. 105–298 (Comm. on Appropriations). SENATE REPORTS: No. 107–75, accompanying S. 1156 (Comm. on Appropriations). CONGRESSIONAL RECORD, Vol. 143 (1997):

Oct. 9, considered and passed House.

Nov. 9, considered and passed Senate, amended.

Nov. 12, House concurred in certain Senate amendments, with amendments; disagreed to another amendment.

Nov. 13, Senate concurred in House amendments; receded from its amendment.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):

Nov. 19, Presidential statement.

 Public Law 105–101: To amend chapter 91 of title 18, United States Code, to provide criminal penalties for theft and willful vandalism at national cemeteries. Public Law 101 Public Law 105–101 111 Stat. 2202 1997-11-19 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105 public 111 STAT. 2202 Public Law 105–101 105th Congress
An Act To amend chapter 91 of title 18, United States Code, to provide criminal penalties for theft and willful vandalism at national cemeteries.

Nov. 19, 1997

[S. 813]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Veterans’ Cemetery Protection Act of 1997.

28 USC 994 note.
SECTION 1. SHORT TITLE. This Act may be cited as the “Veterans’ Cemetery Protection Act of 1997”.
SEC. 2.

28 USC 994 note.

 SENTENCING FOR OFFENSES AGAINST PROPERTY AT NATIONAL CEMETERIES. (a) In General.— Pursuant to its authority under section 994 of title 28, United States Code, the United States Sentencing Commission shall review and amend the Federal sentencing guidelines to provide a sentencing enhancement of not less than 2 levels for any offense against the property of a national cemetery. (b) Commission Duties .— In carrying out subsection (a), the Sentencing Commission shall ensure that the sentences, guidelines, and policy statements for offenders convicted of an offense described in that subsection are— (1) appropriately severe; and (2) reasonably consistent with other relevant directives and with other Federal sentencing guidelines. (c) Definition of National Cemetery.— In this section, the term “national cemetery” means a cemetery— (1) in the National Cemetery System established under section 2400 of title 38, United States Code; or 111 STAT. 2203 (2) under the jurisdiction of the Secretary of the Army, the Secretary of the Navy, the Secretary of the Air Force, or the Secretary of the Interior.
Approved November 19, 1997.
LEGISLATIVE HISTORY—S. 813 (H.R. 1532): HOUSE REPORTS: No. 105–142 accompanying H.R. 1532 (Comm. on the Judiciary). CONGRESSIONAL RECORD, Vol. 143 (1997).

Nov. 4, considered and passed Senate.

Nov. 8, considered and passed House.

 Public Law 105–102: To codify without substantive change laws related to transportation and to improve the United States Code. Public Law 102 Public Law 105–102 111 Stat. 2204 1997-11-20 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105 public 111 STAT. 2204 Public Law 105–102 105th Congress
An Act To codify without substantive change laws related to transportation and to improve the United States Code.

Nov. 20, 1997

[HR. 1086]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. TITLE 26, INTERNAL REVENUE CODE OF 1986. Section 9503(e)(3) of the Internal Revenue Code of 1986 (26 U.S.C. 9503(e)(3)) is amended by striking “such Acts are in effect” and all that follows through the end of the paragraph and substituting “section 5338(a)(1) or (b)(1) and the Intermodal Surface Transportation Efficiency Act of 1991 were in effect on December 18, 1991”.
SEC. 2. TITLE 49, UNITED STATES CODE. Title 49, United States Code, is amended as follows: (1) In the item related to subchapter I in the analysis for chapter 5, strike— “DUTIES AND”. (2) In the heading for subchapter I of chapter 5, strike— “AND”. (3) In section 5108(f), strike “section 522(f)” and substitute “section 552(b)”. (4) Section 5303(c) is amended as follows: (A) In paragraph (1), insert “and sections 5304–5306 of this title” after “this section”. (B) In paragraph (4)(A), strike “paragraph (3)” and substitute “paragraph (5)”. (C) In paragraph (5)(A), insert “and sections 5304–5306 of this title” after “this section”. (5) In item 155 in the subtitle analysis for subtitle IV, strike “AND TARIFFS”. (6) In section 11904(a)(2), strike “a person” and substitute “person”. (7) In section 11906, strike “of this title” and substitute “of this part”. (8) In section 13506(a)(5), strike “1141j(a))” and substitute “1141j(a)))”. (9) In section 13703(a)(2), strike “subsection (a)” and substitute “paragraph (1)”. (10) In section 13905(e)(1), strike “31144,” and substitute “31144”. 111 STAT. 2205 (11) In section 14123(c)(2)(B), insert “in” before “no event”. (12) In section 14903(a), insert “a” before “civil penalty of not more than”. (13) In section 15101(a), strike “oversee of” and substitute “oversee”. (14) In the item related to section 15904 in the analysis for chapter 159, strike “certain” and substitute “pipeline”. (15) In section 15904(c)(1), strike “section 11501(b)” and substitute “15901(b)”. (16) In section 16101, redesignate subsection (d) as (c). (17) In item 305 in the subtitle analysis for subtitle VI, strike “national automobile title information system” and substitute “national motor vehicle title information system”. (18) In section 30305(b)— (A) in paragraph (8), as redesignated by section 207(b) of the Coast Guard Authorization Act of 1996 (Public Law 104–324; 110 Stat. 3908), strike “paragraph (2)” and substitute “subsection (a) of this section”; and (B) redesignate paragraph (8), as redesignated by section 502(b)(1) of the Federal Aviation Reauthorization Act of 1996 (Public Law 104–264; 110 Stat. 3262), as paragraph (9). (19) In section 32706(c), strike “subchapter II of chapter 105” and substitute “subchapter I of chapter 135”. (20) In the analysis of subtitle VII, strike the item related to part D and substitute “PART D— “491. (21) In the item related to section 41502 in the analysis for chapter 415, strike “common”. (22) The catchline for section 41502 is amended by striking “common”. (23) In section 41713(b)(4)(B)(ii), strike “10102” and substitute “13102” (24) In section 41714(d)(1), strike “sections 6005(c)(5) and 6009(e) of the Metropolitan Washington Airports Act of 1986” and substitute “sections 49104(a)(5) and 49111(e) of this title”. (25) In section 44936(f)(1)(C), strike “section 30305(b)(7)” and substitute “section 30305(b)(8) of this title”. (26) Insert after part C of subtitle VII the following: “PART D— PUBLIC AIRPORTS “CHAPTER 491— METROPOLITAN WASHINGTON AIRPORTS “Sec. “49101. “49102. “49103. “49104. “49105. “49106. “49107. “49108. “49109. “49110. 111 STAT. 2206 “49111. “49112.
“§ 49101. FINDINGS “Congress finds that— “(1) the 2 federally owned airports in the metropolitan area of the District of Columbia constitute an important and growing part of the commerce, transportation, and economic patterns of Virginia, the District of Columbia, and the surrounding region; “(2) Baltimore/Washington International Airport, owned and operated by Maryland, is an air transportation facility that provides service to the greater Metropolitan Washington region together with the 2 federally owned airports, and timely Federal-aid grants to Baltimore/Washington International Airport will provide additional capacity to meet the growing air traffic needs and to compete with other airports on a fair basis; “(3) the United States Government has a continuing but limited interest in the operation of the 2 federally owned airports, which serve the travel and cargo needs of the entire Metropolitan Washington region as well as the District of Columbia as the national seat of government; “(4) operation of the Metropolitan Washington Airports by an independent local authority will facilitate timely improvements at both airports to meet the growing demand of interstate air transportation occasioned by the Airline Deregulation Act of 1978 (Public Law 95–504; 92 Stat. 1705); “(5) all other major air carrier airports in the United States are operated by public entities at the State, regional, or local level; “(6) any change in status of the 2 airports must take into account the interest of nearby communities, the traveling public, air carriers, general aviation, airport employees, and other interested groups, as well as the interests of the United States Government and State governments involved; “(7) in recognition of a perceived limited need for a Federal role in the management of these airports and the growing local interest, the Secretary of Transportation has recommended a transfer of authority from the Federal to the local/State level that is consistent with the management of major airports elsewhere in the United States; “(8) an operating authority with representation from local jurisdictions, similar to authorities at all major airports in the United States, will improve communications with local officials and concerned residents regarding noise at the Metropolitan Washington Airports; “(9) a commission of congressional, State, and local officials and aviation representatives has recommended to the Secretary that transfer of the federally owned airports be as a unit to an independent authority to be created by Virginia and the District of Columbia; and “(10) the Federal interest in these airports can be provided through a lease mechanism which provides for local control and operation. 111 STAT. 2207
“§ 49102. PURPOSE “(a) General.— The purpose of this chapter is to authorize the transfer of operating responsibility under long-term lease of the 2 Metropolitan Washington Airport properties as a unit, including access highways and other related facilities, to a properly constituted independent airport authority created by Virginia and the District of Columbia, in order to achieve local control, management, operation, and development of these important transportation assets. “(b) Inclusion of Baltimore/Washington International Airport Not Precluded.— This chapter does not prohibit the Airports Authority and Maryland from making an agreement to make Baltimore/Washington International Airport part of a regional airports authority, subject to terms agreed to by the Airports Authority, the Secretary of Transportation, Virginia, the District of Columbia, and Maryland.
“§ 49103. DEFINITIONS “In this chapter— “(1) ‘Airports Authority’ means the Metropolitan Washington Airports Authority, a public authority created by Virginia and the District of Columbia consistent with the requirements of section 49106 of this title. “(2) ‘employee’ means any permanent Federal Aviation Administration personnel employed by the Metropolitan Washington Airports on June 7, 1987. “(3) ‘Metropolitan Washington Airports’ means Washington National Airport and Washington Dulles International Airport. “(4) ‘Washington Dulles International Airport’ means the airport constructed under the Act of September 7, 1950 (ch. 905, 64 Stat. 770), and includes the Dulles Airport Access Highway and Right-of-way, including the extension between Interstate Routes 1–495 and 1–66. “(5) ‘Washington National Airport’ means the airport described in the Act of June 29, 1940 (ch. 444, 54 Stat. 686).
“§ 49104. LEASE OF METROPOLITAN WASHINGTON AIRPORTS “(a) General.— The lease between the Secretary of Transportation and the Metropolitan Washington Airports Authority under section 6005(a) of the Metropolitan Washington Airports Act of 1986 (Public Law 99–500; 100 Stat. 1783–375; Public Law 99–591; 100 Stat. 3341–378), for the Metropolitan Washington Airports must provide during its 50-year term at least the following: “(1) The Airports Authority shall operate, maintain, protect, promote, and develop the Metropolitan! Washington Airports as a unit and as primary airports serving the Metropolitan Washington area. “(2) (A) In this paragraph, ‘airport purposes’ means a use of property interests (except a sale) for— “(i) aviation business or activities; “(ii) activities necessary or appropriate to serve passengers or cargo in air commerce; or “(iii) nonprofit, public use facilities that are not inconsistent with the needs of aviation. “(B) During the period of the lease, the real property constituting the Metropolitan Washington Airports shall be used only for airport purposes. 111 STAT. 2208 “(C) If the Secretary decides that any part of the real property leased to the Airports Authority under this chapter is used for other than airport purposes, the Secretary shall— “(i) direct that the Airports Authority take appropriate measures to have that part of the property be used for airport purposes; and “(ii) retake possession of the property if the Airports Authority fails to have that part of the property be used for airport purposes within a reasonable period of time, as the Secretary decides. “(3) The Airports Authority is subject to section 47107(a)–(c) and (e) of this title and to the assurances and conditions required of grant recipients under the Airport and Airway Improvement Act of 1982 (Public Law 97–248; 96 Stat. 671) as in effect on June 7, 1987. Notwithstanding section 47107(b) of this title, all revenues generated by the Metropolitan Washington Airports shall be expended for the capital and operating costs of the Metropolitan Washington Airports. “(4) In acquiring by contract supplies or services for an amount estimated to be more than $200,000, or awarding concession contracts, the Airports Authority to the maximum extent practicable shall obtain complete and open competition through the use of published competitive procedures. By a vote of 7 members, the Airports Authority may grant exceptions to the requirements of this paragraph. “(5) (A) Except as provided in subparagraph (B) of this paragraph, all regulations of the Metropolitan Washington Airports (14 CFR part 159) become regulations of the Airports Authority as of June 7, 1987, and remain in effect until modified or revoked by the Airports Authority under procedures of the Airports Authority. “(B) Sections 159.59(a) and 159.191 of title 14, Code of Federal Regulations, do not become regulations of the Airports Authority. “(C) The Airports Authority may not increase or decrease the number of instrument flight rule takeoffs and landings authorized by the High Density Rule (14 CFR 93.121 et seq.) at Washington National Airport on October 18, 1986, and may not impose a limitation on the number of passengers taking off or landing at Washington National Airport. “(6) (A) Except as specified in subparagraph (B) of this paragraph, the Airports Authority shall assume all rights, liabilities, and obligations of the Metropolitan Washington Airports on June 7, 1987, including leases, permits, licenses, contracts, agreements, claims, tariffs, accounts receivable, accounts payable, and litigation related to those rights and obligations, regardless whether judgment has been entered, damages awarded, or appeal taken. The Airports Authority must cooperate in allowing representatives of the Attorney General and the Secretary adequate access to employees and records when needed for the performance of duties and powers related to the period before June 7, 1987. The Airports Authority shall assume responsibility for the Federal Aviation Administration’s Master Plans for the Metropolitan Washington Airports. 111 STAT. 2209 “(B) The procedure for disputes resolution contained in any contract entered into on behalf of the United States Government before June 7, 1987, continues to govern the performance of the contract unless otherwise agreed to by the parties to the contract. Claims for monetary damages founded in tort, by or against the Government as the owner and operator of the Metropolitan Washington Airports, arising before June 7, 1987, shall be adjudicated as if the lease had not been entered into. “(C) The Administration is responsible for reimbursing the Employees’ Compensation Fund, as provided in section 8147 of title 5, for compensation paid or payable after June 7, 1987, in accordance with chapter 81 of title 5 for any injury, disability, or death due to events arising before June 7, 1987, whether or not a claim was filed or was final on that date. “(D) The Airports Authority shall continue all collective bargaining rights enjoyed by employees of the Metropolitan Washington Airports before June 7, 1987. “(7) The Comptroller General may conduct periodic audits of the activities and transactions of the Airports Authority in accordance with generally accepted management principles, and under regulations the Comptroller General may prescribe. An audit shall be conducted where the Comptroller General considers it appropriate. All records and property of the Airports Authority shall remain in possession and custody of the Airports Authority. “(8) The Airports Authority shall develop a code of ethics and financial disclosure to ensure the integrity of all decisions made by its board of directors and employees. The code shall include standards by which members of the board will decide, for purposes of section 49106(d) of this title, what constitutes a substantial financial interest and the circumstances under which an exception to the conflict of interest prohibition may be granted. “(9) A landing fee imposed for operating an aircraft or revenues derived from parking automobiles— “(A) at Washington Dulles International Airport may not be used for maintenance or operating expenses (excluding debt service, depreciation, and amortization) at Washington National Airport; and “(B) at Washington National Airport may not be used for maintenance or operating expenses (excluding debt service, depreciation, and amortization) at Washington Dulles International Airport. “(10) The Airports Authority shall compute the fees and charges for landing general aviation aircraft at the Metropolitan Washington Airports on the same basis as the landing fees for air carrier aircraft, except that the Airports Authority may require a minimum landing fee that is not more than the landing fee for aircraft weighing 12,500 pounds. “(11) The Secretary shall include other terms applicable to the parties to the lease that are consistent with, and carry out, this chapter. “(b) Payments.— Under the lease, the Airports Authority must pay to the general fund of the Treasury annually an amount, computed using the GNP Price Deflator, equal to $3,000,000 in 111 STAT. 22101987 dollars. The Secretary and the Airports Authority may renegotiate the level of lease payments attributable to inflation costs every 10 years. “(c) Enforcement of Lease Provisions.— The district courts of the United States have jurisdiction to compel the Airports Authority and its officers and employees to comply with the terms of the lease. The Attorney General or an aggrieved party may bring an action on behalf of the Government. “(d) Extension of Lease.— The Secretary and the Airports Authority may at any time negotiate an extension of the lease.
“§ 49105. CAPITAL IMPROVEMENTS, CONSTRUCTION, AND REHABILITATION “(a) Sense of Congress.— It is the sense of Congress that the Metropolitan Washington Airports Authority— “(1) should pursue the improvement, construction, and rehabilitation of the facilities at Washington Dulles International Airport and Washington National Airport simultaneously; and “(2) to the extent practicable, should cause the improvement, construction, and rehabilitation proposed by the Secretary of Transportation to be completed at Washington Dulles International Airport and Washington National Airport within 5 years after March 30, 1988. “(b) Secretary’s Assistance.— The Secretary shall assist the 3 airports serving the District of Columbia metropolitan area in planning for operational and capital improvements at those airports and shall accelerate consideration of applications for United States Government financial assistance by whichever of the 3 airports is most in need of increasing airside capacity.
“§ 49106. METROPOLITAN WASHINGTON AIRPORTS AUTHORITY “(a) Status.— The Metropolitan Washington Airports Authority shall be— “(1) a public body corporate and politic with the powers and jurisdiction— “(A) conferred upon it jointly by the legislative authority of Virginia and the District of Columbia or by either of them and concurred in by the legislative authority of the other jurisdiction; and “(B) that at least meet the specifications of this section and section 49108 of this title; “(2) independent of Virginia and its local governments, the District of Columbia, and the United States Government; and “(3) a political subdivision constituted only to operate and improve the Metropolitan Washington Airports as primary airports serving the Metropolitan Washington area. “(b) General Authority.— (1) The Airports Authority shall be authorized— “(A) to acquire, maintain, improve, operate, protect, and promote the Metropolitan Washington Airports for public purposes; “(B) to issue bonds from time to time in its discretion for public purposes, including paying any part of the cost of airport improvements, construction, and rehabilitation and the 111 STAT. 2211acquisition of real and personal property, including operating equipment for the airports; “(C) to acquire real and personal property by purchase, lease, transfer, or exchange; “(D) to exercise the powers of eminent domain in Virginia that are conferred on it by Virginia; “(E) to levy fees or other charges; and “(F) to make and maintain agreements with employee organizations to the extent that the Federal Aviation Administration was authorized to do so on October 18, 1996. “(2) Bonds issued under paragraph (1)(B) of this subsection— “(A) are not a debt of Virginia, the District of Columbia, or a political subdivision of Virginia or the District of Columbia; and “(B) may be secured by the Airports Authority’s revenues generally, or exclusively from the income and revenues of certain designated projects whether or not any part of the projects are financed from the proceeds of the bonds. “(c) Board of Directors.— (1) The Airports Authority shall be governed by a board of directors composed of the following 13 members: “(A) 5 members appointed by the Governor of Virginia; “(B) 3 members appointed by the Mayor of the District of Columbia; “(C) 2 members appointed by the Governor of Maryland; and “(D) 3 members appointed by the President with the advice and consent of the Senate. “(2) The chairman of the board shall be appointed from among the members by majority vote of the members and shall serve until replaced by majority vote of the members. “(3) Members of the board shall be appointed by the board for 6 years, except that of the members first appointed by the President after October 9, 1996, one shall be appointed for 4 years. A member may serve after the expiration of that member’s term until a successor has taken office. “(4) A member of the board— “(A) may not hold elective or appointive political office; “(B) serves without compensation except for reasonable expenses incident to board functions; and “(C) must reside within the Washington Standard Metropolitan Statistical Area, except that a member of the board appointed by the President must be a registered voter of a State other than Maryland, Virginia, or the District of Columbia. “(5) A vacancy in the board shall be filled in the manner in which the original appointment was made. A member appointed to fill a vacancy occurring before the expiration of the term for which the member’s predecessor was appointed shall be appointed only for the remainder of that term. “(6) (A) Not more than 2 of the members of the board appointed by the President may be of the same political party. “(B) In carrying out their duties on the board, members appointed by the President shall ensure that adequate consideration is given to the national interest. “(C) The members to be appointed under paragraph (1)(D) of this subsection must be appointed before October 1, 1997. If 111 STAT. 2212the deadline is not met, the Secretary of Transportation and the Airports Authority are subject to the limitations of section 49108 of this title until all members referred to in paragraph (1)(D) are appointed. “(D) A member appointed by the President may be removed by the President for cause. “(7) Eight votes are required to approve bond issues and the annual budget. “(d) Conflicts of Interest.— Members of the board and their immediate families may not be employed by or otherwise hold a substantial financial interest in any enterprise that has or is seeking a contract or agreement with the Airports Authority or is an aeronautical, aviation services, or airport services enterprise that otherwise has interests that can be directly affected by the Airports Authority. The official appointing a member may make an exception if the financial interest is completely disclosed when the member is appointed and the member does not participate in board decisions that directly affect the interest. “(e) Certain Actions To Be Taken by Regulation.— An action of the Airports Authority changing, or having the effect of changing, the hours of operation of, or the type of aircraft serving, either of the Metropolitan Washington Airports may be taken only by regulation of the Airports Authority. “(f) Administrative.— To assist the Secretary in carrying out this chapter, the Secretary may hire 2 staff individuals to be paid by the Airports Authority The Airports Authority shall provide clerical and support staff that the Secretary may require. “(g) Review of Contracting Procedures.— The Comptroller General shall review contracts of the Airports Authority to decide whether the contracts were awarded by procedures that follow sound Government contracting principles and comply with section

Reports.

49104(a)(4) of this title. The Comptroller General shall submit periodic reports of the conclusions reached as a result of the review to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate.
“§49107. FEDERAL EMPLOYEES AT METROPOLITAN WASHINGTON AIRPORTS “(a) Labor Agreements.— (1) The Metropolitan Washington Airports Authority shall adopt all labor agreements that were in effect on June 7, 1987 Unless the parties otherwise agree, the agreements must be renegotiated before June 7, 1992. “(2) Employee protection arrangements made under this section shall ensure, during the 50-year lease term, the continuation of all collective bargaining rights enjoyed by transferred employees retained by the Airports Authority. “(b) Civil Service Retirement.— Any Federal employee who transferred to the Airports Authority and who on June 6, 1987, was subject to subchapter III of chapter 83 or chapter 84 of title 5, is subject to subchapter II of chapter 83 or chapter 84 for so long as continually employed by the Airports Authority without a break in service. For purposes of subchapter III of chapter 83 and chapter 84, employment by the Airports Authority without a break in continuity of service is deemed to be employment by the United States Government. The Airports Authority is the employing agency for purposes of subchapter III of chapter 83 111 STAT. 2213and chapter 84 and shall contribute to the Civil Service Retirement and Disability Fund amounts required by subchapter III of chapter 83 and chapter 84. “(c) Access to Records.— The Airports Authority shall allow representatives of the Secretary of Transportation adequate access to employees and employee records of the Airports Authority when needed to carry out a duty or power related to the period before June 7, 1987. The Secretary shall provide the Airports Authority access to employee records of transferring employees for appropriate purposes.
“§ 49108. LIMITATIONS “After October 1, 2001, the Secretary of Transportation may not approve an application of the Metropolitan Washington Airports Authority— “(1) for an airport development project grant under subchapter I of chapter 471 of this title; or “(2) to impose a passenger facility fee under section 40117 of this title.
“§ 49109. NONSTOP FLIGHTS “An air carrier may not operate an aircraft nonstop in air transportation between Washington National Airport and another airport that is more than 1,250 statute miles away from Washington National Airport.
“§ 49110. USE OF DULLES AIRPORT ACCESS HIGHWAY “The Metropolitan Washington Airports Authority shall continue in effect and enforce section 4.2(1) and (2) of the Metropolitan Washington Airports Regulations, as in effect on February 1, 1995. The district courts of the United States have jurisdiction to compel the Airports Authority and its officers and employees to comply with this section. The Attorney General or an aggrieved party may bring an action on behalf of the United States Government.
“§ 49111. RELATIONSHIP TO AND EFFECT OF OTHER LAWS “(a) Same Powers and Restrictions Under Other Laws.— To ensure that the Metropolitan Washington Airports Authority has the same proprietary powers and is subject to the same restrictions under United States law as any other airport except as otherwise provided in this chapter, during the period that the lease authorized by section 6005 of the Metropolitan Washington Airports Act of 1986 (Public Law 99–500; 100 Stat. 1783–375; Public Law 99–591; 100 Stat. 3341–378) is in effect— “(1) the Metropolitan Washington Airports are deemed to be public airports for purposes of chapter 471 of this title; and “(2) the Act of June 29, 1940 (ch. 444, 54 Stat. 686), the First Supplemental Civil Functions Appropriations Act, 1941 (ch. 780, 54 Stat. 1030), and the Act of September 7, 1950 (ch. 905, 64 Stat. 770), do not apply to the operation of the Metropolitan Washington Airports, and the Secretary of Transportation is relieved of all responsibility under those Acts. “(b) Inapplicability of Certain Laws.— The Metropolitan Washington Airports and the Airports Authority are not subject to the requirements of any law solely by reason of the retention 111 STAT. 2214of the United States Government of the fee simple title to those airports. “(c) Police Power.— Virginia shall have concurrent police power authority over the Metropolitan Washington Airports, and the courts of Virginia may exercise jurisdiction over Washington National Airport. “(d) Planning.— (1) The authority of the National Capital Planning Commission under section 5 of the Act of June 6, 1924 (40 U.S.C. 71d), does not apply to the Airports Authority. “(2) The Airports Authority shall consult with— “(A) the Commission and the Advisory Council on Historic Preservation before undertaking any major alterations to the exterior of the main terminal at Washington Dulles International Airport; and “(B) the Commission before undertaking development that would alter the skyline of Washington National Airport when viewed from the opposing shoreline of the Potomac River or from the George Washington Parkway. “(e) Operation Limitations.— The Administrator of the Federal Aviation Administration may not increase the number of instrument flight rule takeoffs and landings authorized for air carriers by the High Density Rule (14 CFR 93.121 et seq.) at Washington National Airport on October 18, 1986, and may not decrease the number of those takeoffs and landings except for reasons of safety.
“§ 49112. SEPARABILITY AND EFFECT OF JUDICIAL ORDER “(a) Separability.— If any provision of this chapter, or the application of a provision of this chapter to a person or circumstance, is held invalid, the remainder of this chapter and the application of the provision to other persons or circumstances is not affected. “(b) Effect of Judicial Order.— (1) If any provision of the Metropolitan Washington Airports Amendments Act of 1996 (title IX of Public Law 104–264; 110 Stat. 3274) or the amendments made by the Act, or the application of that provision to a person, circumstance, or venue, is held invalid by a judicial order, the Secretary of Transportation and the Metropolitan Washington Airports Authority shall be subject to section 49108 of this title from the day after the day the order is issued. “(2) Any action of the Airports Authority that was required to be submitted to the Board of Review under section 6007(f)(4) of the Metropolitan Washington Airports Act of 1986 (Public Law 99–500; 100 Stat. 1783–380; Public Law 99–599; 100 Stat. 3341–383) before October 9, 1996, remains in effect and may not be set aside only because of a judicial order invalidating certain functions of the Board.”.
SEC. 3. TECHNICAL CHANGES TO OTHER LAWS. (a) Effective November 15, 1995, section 333(a)(1) and (2) of the Department of Transportation and Related Agencies Appropriations

49 USC 5302 note, 5302.

Act, 1996 (Public Law 104–50; 109 Stat. 457) is amended to read as follows: “(1) in subparagraph (B) ‘that extends the economic life of a bus for at least 5 years’; and “(2) in subparagraph (C), ‘that extends the economic life of a bus for at least 8 years’.”. 111 STAT. 2215 (b) Effective July 2, 1996, section 2(c) of the Anti-Car Theft Improvements Act of 1996 (Public Law 104–152; 110 Stat. 1384) is amended by striking “sections 30502 and 30503” and substituting

49 USC 30501 note, 30501–30504.

“sections 30501(6), 30502, 30503, and 30504(a)(1)”. (c) Effective October 9, 1996, the Federal Aviation Reauthorization Act of 1996 (Public Law 104–264; 110 Stat. 3213) is amended

49 USC 106 note.

as follows: (1) Section 123 is amended as follows:

49 USC 47117.

 (A) Subsection (b)(6) is amended to read as follows: “(6) in subparagraph (B), as so redesignated, by striking ‘at least 2.25’ and all that follows through ‘1996,’ and inserting ‘at least 4 percent for each of fiscal years 1997 and 1998, and”. (B) Add at the end the following: “(d) Conforming Cross-Reference.— Section 47117(e)(1)(A), as redesignated by subsection (b)(3) of this section, is amended by striking ‘47504(c)(1)’ and substituting ‘47504(c)’.”. (2) Section 124 is amended by striking subsection (d).

49 USC 47117.

49 USC 106.

 (3) Section 276 is amended by adding at the end the following: “(c) Conforming Cross-Reference.— Section 106(g)(1)(A) is amended by striking ‘45302, 45303’ and substituting ‘45302–45304’.”. (4) Sections 502(c) and 1220(b) are repealed.

49 USC 46301.

49 USC 40124 note.

 (d) Effective October 11, 1996— (1) Section 5 of the Act of October 11, 1996 (Public Law 104–287; 110 Stat. 3388), is amended as follows: (A) In clause (45)(A), strike “enforcement,” and substitute “enforcement:”. (B) Clause (69) is amended to read as follows:

49 USC 40121, 40124

 “(69) (A) Add at the end of chapter 401 the following:
“§ 40124. INTERSTATE AGREEMENTS FOR AIRPORT FACILITIES ‘Congress consents to a State making an agreement, not in conflict with a law of the United States, with another State to develop or operate an airport facility.’. “(B) In the analysis for chapter 401, add at the end the following: ‘40124.
(C) Clause (76) is repealed.

49 USC 30501.

49 USC 46316.

 (D) Clause (79) is amended to read as follows: “(79) In section 46316(b), strike ‘and sections 44701(a) and (b), 44702–44716, 44901, 44903(b) and (c), 44905, 44906, 44912–44915, and 44932–44938’ and substitute ‘chapter 447 (except section 44718(a)), and chapter 449 (except sections 44902, 44903(d), 44904, and 44907–44909)’.”. (E) Clause (84) is repealed.

49 USC 47128.

 (2) Section 8 of the Act of October 11, 1996 (Public Law 104–287; 110 Stat. 3400), is amended as follows: (A) In paragraph (1), strike “(77), (78)” and substitute

49 USC 5303 note.

“(77)–(79)”. (B) Paragraph (2) is amended to read as follows:

49 USC 47117 note.

 “(2) The amendments made by section 5(81)(B), (82)(A), and (83)(A) shall take effect on September 30, 1998.”. (e) The General Aviation Revitalization Act of 1994 (Public Law 103–298; 108 Stat. 1552) is amended as follows:

49 USC 40101 note.

 111 STAT. 2216 (1) In section 2(c), strike “the Federal Aviation Act of 1958 (49 U.S.C. App. 1301 et seq.)” and substitute “part A of subtitle VII of title 49, United States Code,”. (2) In section 3— (A) in paragraph (1), strike “section 101(5) of the Federal Aviation Act of 1958 (49 U.S.C. 1301(5))” and substitute “section 40102(a)(6) of title 49, United States Code”; (B) in paragraph (2), strike “section 603(c) of the Federal Aviation Act of 1958 (49 U.S.C. 1423(c))” and substitute “section 44704(c)(1) of title 49, United States Code,”; and (C) in paragraph (4), strike “section 603(a) of the Federal Aviation Act of 1958 (49 U.S.C. 1423(a))” and substitute “section 44704(a) of title 49, United States Code,”. (f)

Effective dates.

49 USC 106 note.

 The amendments made by subsections (a) through (d) of this section shall take effect as if included in the provisions of the Acts to which the amendments relate.
SEC. 4.

49 USC note prec. 101.

 LEGISLATIVE PURPOSE AND CONSTRUCTION. (a) No Substantive Change.— This Act restates, without substantive change, laws enacted before May 1, 1997, that were replaced by this Act. This Act may not be construed as making a substantive change in the laws replaced. Laws enacted after April 30, 1997, that are inconsistent with this Act supersede this Act to the extent of the inconsistency. (b) References.— A reference to a law replaced by this Act, including a reference in a regulation, order, or other law, is deemed to refer to the corresponding provision enacted by this Act. (c) Continuing Effect.— An order, rule, or regulation in effect under a law replaced by this Act continues in effect under the corresponding provision enacted by this Act until repealed, amended, or superseded. (d) Actions and Offenses Under Prior Law.— An action taken or an offense committed under a law replaced by this Act is deemed to have been taken or committed under the corresponding provision enacted by this Act. (e) Inferences.— An inference of a legislative construction is not to be drawn by reason of the location in the United States Code of a provision enacted by this Act or by reason of a caption or catch line of the provision. (f) Severability.— If a provision enacted by this Act is held invalid, all valid provisions that are severable from the invalid provision remain in effect. If a provision enacted by this Act is held invalid in any of its applications, the provision remains valid for all valid applications that are severable from any of the invalid applications.
SEC. 5.

49 USC note prec. 101.

 REPEALS. (a) Inferences of Repeal.— The repeal of a law by this Act may not be construed as a legislative inference that the provision was or was not in effect before its repeal. 111 STAT. 2217 (b) Repealer Schedule.— The laws specified in the following schedule are repealed, except for rights and duties that matured, penalties that were incurred, and proceedings that were begun before the date of enactment of this Act:

Schedule of Laws Repealed

Statutes at Large
Date Chapter or Public Law Section Statutes at Large U.S. Code
Volume Page Title Section
1996
Oct. 18 99–500 ... 6001–6012................................... 100 1783–373 ....... ........................
Oct. 30 99–591 ... 6001–6012................................... 100 3341–376 ....... ........................
1991
Oct. 18 102–240 7001–7004................................... 105 2197.......... ....... ........................
1996
Oct. 9 104–264 902–907...................................... 110 3274.......... ....... ........................
Approved November 20, 1997.
LEGISLATIVE HISTORY—H.R. 1086: HOUSE REPORTS: No. 106–153 (Comm. on the Judiciary). CONGRESSIONAL RECORD, Vol. 143 (1997):

July 8, considered and passed House.

Nov. 8, considered and passed Senate.

 Public Law 105–103: To waive time limitations specified by law in order to allow the Medal of Honor to be awarded to Robert R. Ingram of Jacksonville, Florida, for acts of valor while a Navy Hospital Corpsman in the Republic of Vietnam during the Vietnam conflict. Public Law 103 Public Law 105–103 111 Stat. 2218 1997-11-20 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105 public 111 STAT. 2218 Public Law 105–103 105th Congress
An Act To waive time limitations specified by law in order to allow the Medal of Honor to be awarded to Robert R. Ingram of Jacksonville, Florida, for acts of valor while a Navy Hospital Corpsman in the Republic of Vietnam during the Vietnam conflict.

Nov. 20, 1997

[H.R. 2813]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. AUTHORITY FOR AWARD OF MEDAL OF HONOR TO ROBERT R. INGRAM FOR VALOR DURING THE VIETNAM CONFLICT. (a) Waiver of Time Limitations.— Notwithstanding the time limitations specified in section 6248 of title 10, United States Code, or any other time limitation with respect to the awarding of certain medals to persons who served in the naval service, the President may award the Medal of Honor under section 6241 of that title to Robert R. Ingram of Jacksonville, Florida, for the acts of valor referred to in subsection (b). (b) Action Described.— The acts of valor referred to in subsection (a) are the actions of Robert R. Ingram on March 28, 1966, as a Hospital Corpsman Third Class in the Navy serving in the Republic of Vietnam with Company C of the First Battalion, Seventh Marines, during a combat operation designated as Operation Indiana.
Approved November 20, 1997.
LEGISLATIVE HISTORY.—H R. 2813: CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 8, considered and passed House.

Nov. 10, considered and passed Senate.

 Public Law 105–104: Granting the consent of Congress to the Apalachicola-Chattahoochee-Flint River Basin Compact. Public Law 104 Public Law 105–104 111 Stat. 2219 1997-11-20 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105 public 111 STAT. 2219 Public Law 105–104 105th Congress
Joint Resolution Granting the consent of Congress to the Apalachicola-Chattahoochee-Flint River Basin Compact.

Nov. 20, 1997

[H.J. Res. 91]

 Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,

State listing.
SECTION 1. CONGRESSIONAL CONSENT. The Congress consents to the Apalachicola-Chattahoochee-Flint River Basin Compact entered into by the States of Alabama, Florida, and Georgia. The Compact is substantially as follows: “Apalachicola-Chattahoochee-Flint River Basin Compact “The States of Alabama, Florida and Georgia and the United States of America hereby agree to the following compact which shall become effective upon enactment of concurrent legislation by each respective state legislature and the Congress of the United States. “SHORT TITLE “This Act shall be known and may be cited as the ‘Apalachicola-Chattahoochee-Flint River Basin Compact’ and shall be referred to hereafter in this document as the ‘ACF Compact’ or ‘Compact’.
“ARTICLE I

Apalachicola-Chattahoochee-Flint River Basin Compact.

 “COMPACT PURPOSES “This Compact among the States of Alabama, Florida and Georgia and the United States of America has been entered into for the purposes of promoting interstate comity, removing causes of present and future controversies, equitably apportioning the surface waters of the ACF, engaging in water planning, and developing and sharing common data bases.
“ARTICLE II “SCOPE OF THE COMPACT “This Compact shall extend to all of the waters arising within the drainage basin of the ACF in the states of Alabama, Florida and Georgia.
111 STAT. 2220
“ARTICLE III “PARTIES “The parties to this Compact are the states of Alabama, Florida and Georgia and the United States of America.
“ARTICLE IV “DEFINITIONS “For the purposes of this Compact, the following words, phrases and terms shall have the following meanings: “(a) ‘ACF Basin’ or ‘ACF’ means the area of natural drainage into the Apalachicola River and its tributaries, the Chattahoochee River and its tributaries, and the Flint River and its tributaries. Any reference to the rivers within this Compact will be designated using the letters ‘ACF’ and when so referenced will mean each of these three rivers and each of the tributaries to each such river. “(b) ‘Allocation formula’ means the methodology, in whatever form, by which the ACF Basin Commission determines an equitable apportionment of surface waters within the ACF Basin among the three states. Such formula may be represented by a table, chart, mathematical calculation or any other expression of the Commission’s apportionment of waters pursuant to this compact. “(c) ‘Commission’ or ‘ACF Basin Commission’ means the Apalachicola-Chattahoochee-Flint River Basin Commission created and established pursuant to this Compact. “(d) ‘Ground waters’ means waters within a saturated zone or stratum beneath the surface of land, whether or not flowing through known and definite channels. “(e) ‘Person’ means any individual, firm, association, organization, partnership, business, trust, corporation, public corporation, company, the United States of America, any state, and all political subdivisions, regions, districts, municipalities, and public agencies thereof. “(f) ‘Surface waters’ means waters upon the surface of the earth, whether contained in bounds created naturally or artificially or diffused. Water from natural springs shall be considered ‘surface waters’ when it exits from the spring onto the surface of the earth. “(g) ‘United States’ means the executive branch of the government of the United States of America, and any department, agency, bureau or division thereof. “(h) “Water Resource Facility’ means any facility or project constructed for the impoundment, diversion, retention, control or regulation of waters within the ACF Basin for any purpose. “(i) ‘Water resources,’ or ‘waters’ means all surface waters and ground waters contained or otherwise originating within the ACF Basin.
“ARTICLE V “CONDITIONS PRECEDENT TO LEGAL VIABILITY OF THE COMPACT “This Compact shall not be binding on any party until it has been enacted into law by the legislatures of the states of Alabama, 111 STAT. 2221Florida and Georgia and by the Congress of the United States of America.
“ARTICLE VI “ACF BASIN COMMISSION CREATED “(a) There is hereby created an interstate administrative agency to be known as the ‘ACF Basin Commission.’ The Commission shall be comprised of one member representing the state of Alabama, one member representing the state of Florida, one member representing the state of Georgia, and one non-voting member representing the United States of America. The state members shall be known as ‘State Commissioners’ and the federal member shall be known as ‘Federal Commissioner.’ The ACF Basin Commission is a body politic and corporate, with succession for the duration of this Compact. “(b) The Governor of each of the states shall serve as the State Commissioner for his or her state. Each State Commissioner shall appoint one or more alternate members and one of such alternates as designated by the State Commissioner shall serve in the State Commissioner’s place and carry out the functions of the State Commissioner, including voting on Commission matters, in the event the State Commissioner is unable to attend a meeting of the Commission. The alternate members from each state shall be knowledgeable in the field of water resources management. Unless otherwise provided by law of the state for which an alternate State Commissioner is appointed, each alternate State Commissioner shall serve at the pleasure of the State Commissioner. In the event of a vacancy in the office of an alternate, it shall be filled in the same manner as an original appointment. “(c) The President of the United States of America shall appoint

President.

the Federal Commissioner who shall serve as the representative of all federal agencies with an interest in the ACF. The President shall also appoint an alternate Federal Commissioner to attend and participate in the meetings of the Commission in the event the Federal Commissioner is unable to attend meetings. When at meetings, the alternate Federal Commissioner shall possess all of the powers of the Federal Commissioner. The Federal Commissioner and alternate appointed by the President shall serve until they resign or their replacements are appointed. “(d) Each state shall have one vote on the ACF Basin Commission and the Commission shall make all decisions and exercise all powers by unanimous vote of the three State Commissioners. The Federal Commissioner shall not have a vote, but shall attend and participate in all meetings of the ACF Basin Commission to the same extent as the State Commissioners. “(e) The ACF Basin Commission shall meet at least once a year at a date set at its initial meeting. Such initial meeting shall take place within ninety days of the ratification of the Compact by the Congress of the United States and shall be called by the chairman of the Commission. Special meetings of the Commission may be called at the discretion of the chairman of the Commission and shall be called by the chairman of the Commission upon written request of any member of the Commission. All members shall be notified of the time and place designated for any regular or special meeting at least five days prior to such meeting in one 111 STAT. 2222of the following ways: by written notice mailed to the last mailing address given to the Commission by each member, by facsimile, telegram or by telephone. The Chairmanship of the Commission shall rotate annually among the voting members of the Commission on an alphabetical basis, with the first chairman to be the State Commissioner representing the State of Alabama. “(f) All meetings of the Commission shall be open to the public. “(g) The ACF Basin Commission, so long as the exercise of power is consistent with this Compact, shall have the following general powers: “(1) to adopt bylaws and procedures governing its conduct; “(2) to sue and be sued in any court of competent jurisdiction; “(3) to retain and discharge professional, technical, clerical and other staff and such consultants as are necessary to accomplish the purposes of this Compact; “(4) to receive funds from any lawful source and expend funds for any lawful purpose; “(5)

Contracts.

 to enter into agreements or contracts, where appropriate, in order to accomplish the purposes of this Compact; “(6) to create committees and delegate responsibilities; “(7) to plan, coordinate, monitor, and make recommendations for the water resources of the ACF Basin for the purposes of, but not limited to, minimizing adverse impacts of floods and droughts and improving water quality, water supply, and conservation as may be deemed necessary by the Commission; “(8) to participate with other governmental and nongovernmental entities in carrying out the purposes of this Compact; “(9) to conduct studies, to generate information regarding the water resources of the ACF Basin, and to share this information among the Commission members and with others; “(10) to cooperate with appropriate state, federal, and local agencies or any other person in the development, ownership, sponsorship, and operation of water resource facilities in the ACF Basin; provided, however, that the Commission shall not own or operate a federally-owned water resource facility unless authorized by the United States Congress; “(11) to acquire, receive, hold and convey such personal and real property as may be necessary for the performance of its duties under the Compact; provided, however, that nothing in this Compact shall be construed as granting the ACF Basin Commission authority to issue bonds or to exercise any right of eminent domain or power of condemnation; “(12) to establish and modify an allocation formula for apportioning the surface waters of the ACF Basin among the states of Alabama, Florida and Georgia; and “(13) to perform all functions required of it by this Compact and to do all things necessary, proper or convenient in the performance of its duties hereunder, either independently or in cooperation with any state or the United States.
“ARTICLE VII “EQUITABLE APPORTIONMENT “(a) It is the intent of the parties to this Compact to develop an allocation formula for equitably apportioning the surface waters 111 STAT. 2223of the ACF Basin among the states while protecting the water quality, ecology and biodiversity of the ACF, as provided in the Clean Water Act, 33 U.S.C. Sections 1251 et seq., the Endangered Species Act, 16 U.S.C. Sections 1532 et seq., the National Environmental Policy Act, 42 U.S.C. Sections 4321 et seq., the Rivers and Harbors Act of 1899, 33 U.S.C. Sections 401 et seq., and other applicable federal laws. For this purpose, all members of the ACF Basin Commission, including the Federal Commissioner, shall have full rights to notice of and participation in all meetings of the ACF Basin Commission and technical committees in which the basis and terms and conditions of the allocation formula are to be discussed or negotiated. When an allocation formula is unanimously approved by the State Commissioners, there shall be an agreement among the states regarding an allocation formula. The allocation formula thus agreed upon shall become effective and binding upon the parties to this Compact upon receipt by the Commission of a letter of concurrence with said formula from the Federal Commissioner. If, however, the Federal Commissioner fails to submit a letter of concurrence to the Commission within two hundred ten (210) days after the allocation formula is agreed upon by the State Commissioners, the Federal Commissioner shall within forty-five (45) days thereafter submit to the ACF Basin Commission a letter of nonconcurrence with the allocation formula setting forth therein specifically and in detail the reasons for nonconcurrence; provided, however, the reasons for nonconcurrence as contained in the letter of nonconcurrence shall be based solely upon federal law. The allocation formula shall also become effective and binding upon the parties to this Compact if the Federal Commissioner fails to submit to the ACF Basin Commission a letter of nonconcurrence in accordance with this Article. Once adopted pursuant to this Article, the allocation formula may only be modified by unanimous decision of the State Commissioners and the concurrence by the Federal Commissioner in accordance with the procedures set forth in this Article. “(b) The parties to this Compact recognize that the United States operates certain projects within the ACF Basin that may influence the water resources within the ACF Basin. The parties to this Compact further acknowledge and recognize that various agencies of the United States have responsibilities for administering certain federal laws and exercising certain federal powers that may influence the water resources within the ACF Basin. It is the intent of the parties to this Compact, including the United States, to achieve compliance with the allocation formula adopted in accordance with this Article. Accordingly, once an allocation formula is adopted, each and every officer, agency, and instrumentality of the United States shall have an obligation and duty, to the maximum extent practicable, to exercise their powers, authority, and discretion in a manner consistent with the allocation formula so long as the exercise of such powers, authority, and discretion is not in conflict with federal law. “(c) Between the effective date of this Compact and the approval of the allocation formula under this Article, the signatories to this Compact agree that any person who is withdrawing, diverting, or consuming water resources of the ACF Basin as of the effective date of this Compact, may continue to withdraw, divert or consume such water resources in accordance with the laws of the state where such person resides or does business and in accordance 111 STAT. 2224with applicable federal laws. The parties to this Compact further agree that any such person may increase the amount of water resources withdrawn, diverted or consumed to satisfy reasonable increases in the demand of such person for water between the effective date of this Compact and the date on which an allocation formula is approved by the ACF Basin Commission as permitted by applicable law. Each of the state parties to this Compact further agree to provide written notice to each of the other parties to this Compact in the event any person increases the withdrawal, diversion or consumption of such water resources by more than 10 million gallons per day on an average annual daily basis, or in the event any person, who was not withdrawing, diverting or consuming any water resources from the ACF Basin as of the effective date of this Compact, seeks to withdraw, divert or consume more than one million gallons per day on an average annual daily basis from such resources. This Article shall not be construed as granting any permanent, vested or perpetual rights to the amounts of water used between January 3, 1992 and the date on which the Commission adopts an allocation formula. “(d) As the owner, operator, licensor, permitting authority or regulator of a water resource facility under its jurisdiction, each state shall be responsible for using its best efforts to achieve compliance with the allocation formula adopted pursuant to this Article. Each such state agrees to take such actions as may be necessary to achieve compliance with the allocation formula. “(e) This Compact shall not commit any state to agree to any data generated by any study or commit any state to any allocation formula not acceptable to such state.
“ARTICLE VIII “CONDITIONS RESULTING IN TERMINATION OF THE COMPACT “(a) This Compact shall be terminated and thereby be void and of no further force and effect if any of the following events occur: “(1) The legislatures of the states of Alabama, Florida and Georgia each agree by general laws enacted by each state within any three consecutive years that this Compact should be terminated. “(2) The United States Congress enacts a law expressly repealing this Compact. “(3) The States of Alabama, Florida and Georgia fail to agree on an equitable apportionment of the surface waters of the ACF as provided in Article VII(a) of this Compact by December 31, 1998, unless the voting members of the ACF Basin Commission unanimously agree to extend this deadline. “(4) The Federal Commissioner submits to the Commission a letter of nonconcurrence in the initial allocation formula in accordance with Article VII(a) of the Compact, unless the voting members of the ACF Basin Commission unanimously agree to allow a single 45 day period in which the non-voting Federal Commissioner and the voting State Commissioners may renegotiate an allocation formula and the Federal Commissioner withdraws the letter of nonconcurrence upon completion of this renegotiation. 111 STAT. 2225 “(b) If the Compact is terminated in accordance with this Article it shall be of no further force and effect and shall not be the subject of any proceeding for the enforcement thereof in any federal or state court. Further, if so terminated, no party shall be deemed to have acquired a specific right to any quantity of water because it has become a signatory to this Compact.
“ARTICLE IX “COMPLETION OF STUDIES PENDING ADOPTION OF ALLOCATION FORMULA “The ACF Basin Commission, in conjunction with one or more interstate, federal, state or local agencies, is hereby authorized to participate in any study in process as of the effective date of this Compact, including, without limitation, all or any part of the Alabama-Coosa-Tallapoosa/Apalachicola-Chattahoochee- Flint River Basin Comprehensive Water Resource Study, as may be determined by the Commission in its sole discretion.
“ARTICLE X “RELATIONSHIP TO OTHER LAWS “(a) It is the intent of the party states and of the United States Congress by ratifying this Compact, that all state and federal officials enforcing, implementing or administering other state and federal laws affecting the ACF Basin shall, to the maximum extent practicable, enforce, implement or administer those laws in furtherance of the purposes of this Compact and the allocation formula adopted by the Commission insofar as such actions are not in conflict with applicable federal laws. “(b) Nothing contained in this Compact shall be deemed to restrict the executive powers of the President in the event of a national emergency. “(c) Nothing contained in this Compact shall impair or affect the constitutional authority of the United States or any of its powers, rights, functions or jurisdiction under other existing or future laws in and over the area or waters which are the subject of the Compact, including projects of the Commission, nor snail any act of the Commission nave the effect of repealing, modifying or amending any federal law. All officers, agencies and instrumentalities of the United States shall exercise their powers and authority over water resources in the ACF Basin and water resource facilities, and to the maximum extent practicable, shall exercise their discretion in carrying out their responsibilities, powers, and authorities over water resources in the ACF Basin and water resource facilities in the ACF Basin in a manner consistent with and that effectuates the allocation formula developed pursuant to this Compact or any modification of the allocation formula so long as the actions are not in conflict with any applicable federal law. The United States Army Corps of Engineers, or its successors, and all other federal agencies and instrumentalities shall cooperate with the ACF Basin Commission in accomplishing the purposes of the Compact and fulfilling the obligations of each of the parties to the Compact regarding the allocation formula. “(d) Once adopted by the three states and ratified by the United States Congress, this Compact shall have the full force 111 STAT. 2226and effect of federal law, and shall supersede state and local laws operating contrary to the provisions herein or the purposes of this Compact; provided, however, nothing contained in this Compact shall be construed as affecting or intending to affect or in any way to interfere with the laws of the respective signatory states relating to water quality, and riparian rights as among persons exclusively within each state.
“ARTICLE XI “PUBLIC PARTICIPATION “All meetings of the Commission shall be open to the public. The signatory parties recognize the importance and necessity of public participation in activities of the Commission, including the development and adoption of the initial allocation formula and any modification thereto. Prior to the adoption of the initial allocation formula, the Commission shall adopt procedures ensuring public participation in the development, review, and approval of the initial allocation formula and any subsequent modification thereto. At a minimum, public notice to interested parties and a comment period shall be provided. The Commission snail respond in writing to relevant comments.
“ARTICLE XII “FUNDING AND EXPENSES OF THE COMMISSION “Commissioners shall serve without compensation from the ACF Basin Commission. All general operational funding required by the Commission and agreed to by the voting members shall obligate each state to pay an equal share of such agreed upon funding. Funds remitted to the Commission by a state in payment of such obligation shall not lapse; provided, however, that if any state fails to remit payment within 90 days after payment is due, such obligation shall terminate and any state which has made payment may have such payment returned. Costs of attendance and participation at meetings of the Commission by the Federal Commissioner shall be paid by the United States.
“ARTICLE XIII “DISPUTE RESOLUTION “(a) In the event of a dispute between two or more voting members of this Compact involving a claim relating to compliance with the allocation formula adopted by the Commission under this Compact, the following procedures shall govern: “(1) Notice of claim shall be filed with the Commission by a voting member of this Compact and served upon each member of the Commission. The notice shall provide a written statement of the claim, including a brief narrative of the relevant matters supporting the claimant’s position. “(2) Within twenty (20) days of the Commission’s receipt of a written statement of a claim, the party or parties to the Compact against whom the complaint is made may prepare a brief narrative of the relevant matters and file it with the Commission and serve it upon each member of the Commission. 111 STAT. 2227 “(3) Upon receipt of a claim and any response or responses thereto, the Commission shall convene as soon as reasonably practicable, but in no event later than twenty (20) days from receipt of any response to the claim, and shall determine if a resolution of the dispute is possible. “(4) A resolution of a dispute under this Article through unanimous vote of the State Commissioners shall be binding upon the state parties and any state party determined to be in violation of the allocation formula shall correct such violation without delay. “(5) If the Commission is unable to resolve the dispute within 10 days from the date of the meeting convened pursuant to subparagraph (a)(3) of this Article, the Commission shall select, by unanimous decision of the voting members of the Commission, an independent mediator to conduct a non-binding mediation of the dispute. The mediator shall not be a resident or domiciliary of any member state, shall not be an employee or agent of any member of the Commission, shall be a person knowledgeable in water resource management issues, and shall disclose any and all current or prior contractual or other relations to any member of the Commission. The expenses of the mediator shall be paid by the Commission. If the mediator becomes unwilling or unable to serve, the Commission by unanimous decision of the voting members of the Commission, shall appoint another independent mediator. “(6) If the Commission fails to appoint an independent mediator to conduct a non-binding mediation of the dispute within seventy-five (75) days of the filing of the original claim or within thirty (30) days of the date on which the Commission learns that a mediator is unwilling or unable to serve, the party submitting the claim shall have no further obligation to bring the claim before the Commission and may proceed by pursuing any appropriate remedies, including any and all judicial remedies. “(7) If an independent mediator is selected, the mediator shall establish the time and location for the mediation session or sessions and may request that each party to the Compact submit, in writing, to the mediator a statement of its position regarding the issue or issues in dispute. Such statements shall not be exchanged by the parties except upon the unanimous agreement of the parties to the mediation. “(8) The mediator shall not divulge confidential information disclosed to the mediator by the parties or by witnesses, if any, in the course of the mediation. All records, reports, or other documents received by a mediator while serving as a mediator shall be considered confidential. The mediator shall not be compelled in any adversary proceeding or judicial forum to divulge the contents of such documents or the fact that such documents exist or to testify in regard to the mediation. “(9) Each party to the mediation shall maintain the confidentiality of the information received during the mediation and shall not rely on or introduce in any judicial proceeding as evidence:111 STAT. 2228 “a. Views expressed or suggestions made by another party regarding a settlement of the dispute; “b. Proposals made or views expressed by the mediator; or “c. The fact that another party to the hearing had or had not indicated a willingness to accept a proposal for settlement of the dispute. “(10) The mediator may terminate the non-binding mediation session or sessions whenever, in the judgment of the mediator, further efforts to resolve the dispute would not lead to a resolution of the dispute between or among the parties. Any party to the dispute may terminate the mediation process at any time by giving written notification to the mediator and the Commission. If terminated prior to reaching a resolution, the party submitting the original claim to the Commission shall have no further obligation to bring its claim before the Commission and may proceed by pursuing any appropriate remedies, including any and all judicial remedies. “(11) The mediator shall have no authority to require the parties to enter into a settlement of any dispute regarding the Compact. The mediator may simply attempt to assist the parties in reaching a mutually acceptable resolution of their dispute. The mediator is authorized to conduct joint and separate meetings with the parties to the mediation and to make oral or written recommendations for a settlement of the dispute. “(12) At any time during the mediation process, the Commission is encouraged to take whatever steps it deems necessary to assist the mediator or the parties to resolve the dispute. “(13) In the event of a proceeding seeking enforcement of the allocation formula, this Compact creates a cause of action solely for equitable relief. No action for money damages may be maintained. The party or parties alleging a violation of the Compact shall have the burden of proof. “(b) In the event of a dispute between any voting member and the United States relating to a state’s noncompliance with the allocation formula as a result of actions or a refusal to act by officers, agencies or instrumentalities of the United States, the provisions set forth in paragraph (a) of this Article (other than the provisions of subparagraph (a)(4)) shall apply. “(c) The United States may initiate dispute resolution under paragraph (a) in the same manner as other parties to this Compact. “(d) Any signatory party who is affected by any action of the Commission, other than the adoption or enforcement of or compliance with the allocation formula, may file a complaint before the ACF Basin Commission seeking to enforce any provision of this Compact. “(1) The Commission shall refer the dispute to an independent hearing officer or mediator, to conduct a hearing or mediation of the dispute. If the parties are unable to settle their dispute through mediation, a hearing shall be held by the Commission or its designated hearing officer. Following a hearing conducted by a hearing officer, the hearing officer shall submit a report to the Commission setting forth findings of fact and conclusions of law, and making recommendations to the Commission for the resolution of the dispute. 111 STAT. 2229 “(2) The Commission may adopt or modify the recommendations of the hearing officer within 60 days of submittal of the report. If the Commission is unable to reach unanimous agreement on the resolution of the dispute within 60 days of submittal of the report with the concurrence of the Federal Commissioner in disputes involving or affecting federal interests, the affected party may file an action in any court of competent jurisdiction to enforce the provisions of this Compact. The hearing officer’s report shall be of no force and effect and shall not be admissible as evidence in any further proceedings. “(e) All actions under this Article shall be subject to the following provisions: “(1) The Commission shall adopt guidelines and procedures for the appointment of hearing officers or independent mediators to conduct all hearings and mediations required under this Article. The hearing officer or mediator appointed under this Article shall be compensated by the Commission. “(2) All hearings or mediations conducted under this article may be conducted utilizing the Federal Administrative Procedures Act, the Federal Rules of Civil Procedure, and the Federal Rules of Evidence. The Commission may also choose to adopt some or all of its own procedural and evidentiary rules for the conduct of hearings or mediations under this Compact. “(3) Any action brought under this Article shall be limited to equitable relief only. This Compact shall not give rise to a cause of action for money damages. “(4) Any signatory party bringing an action before the Commission under this Article shall have the burdens of proof and persuasion.
“ARTICLE XIV “ENFORCEMENT “The Commission may, upon unanimous decision, bring an action against any person to enforce any provision of this Compact, other them the adoption or enforcement of or compliance with the allocation formula, in any court of competent jurisdiction.
“ARTICLE XV “IMPACTS ON OTHER STREAM SYSTEMS“This Compact shall not be construed as establishing any general principle or precedent applicable to any other interstate streams.
“ARTICLE XVI “IMPACT OF COMPACT ON USE OF WATER WITHIN THE BOUNDARIES OF THE COMPACTING STATES “The provisions of this Compact shall not interfere with the right or power of any state to regulate the use and control of water within the boundaries of the state, providing such state action is not inconsistent with the allocation formula.
111 STAT. 2230
“ARTICLE XVII “AGREEMENT REGARDING WATER QUALITY “(a) The States of Alabama, Florida, and Georgia mutually agree to the principle of individual State efforts to control man-made water pollution from sources located and operating within each State and to the continuing support of each State in active water pollution control programs. “(b) The States of Alabama, Florida, and Georgia agree to cooperate, through their appropriate State agencies, in the investigation, abatement, and control of sources of alleged interstate pollution within the ACF River Basin whenever such sources are called to their attention by the Commission. “(c) The States of Alabama, Florida, and Georgia agree to cooperate in maintaining the quality of the waters of the ACF River Basin. “(d) The States of Alabama, Florida, and Georgia agree that no State may require another state to provide water for the purpose of water quality control as a substitute for or in lieu of adequate waste treatment.
“ARTICLE XVIII “EFFECT OF OVER OR UNDER DELIVERIES UNDER THE COMPACT “No state shall acquire any right or expectation to the use of water because of any other state’s failure to use the full amount of water allocated to it under this Compact.
“ARTICLE XIX “SEVERABILITY “If any portion of this Compact is held invalid for any reason, the remaining portions, to the fullest extent possible, shall be severed from the void portion and given the fullest possible force, effect, and application.
“ARTICLE XX “NOTICE AND FORMS OF SIGNATURE “Notice of ratification of this Compact by the legislature of each state shall promptly be given by the Governor of the ratifying state to the Governors of the other participating states. When all three state legislatures have ratified the Compact, notice of their mutual ratification shall be forwarded to the Congressional delegation of the signatory states for submission to the Congress of the United States for ratification. When the Compact is ratified by the Congress of the United States, the President, upon signing the Federal ratification legislation, shall promptly notify the Governors of the participating states and appoint the Federal Commissioner. The Compact shall be signed by all four Commissioners as their first order of business at their first meeting and shall be filed of record in the party states.”.
111 STAT. 2231
SEC. 2. INCONSISTENCY OF LANGUAGE. The validity of the Compact consented to by this Act shall not be affected by any insubstantial difference in its form or language as adopted by the States.
SEC. 3. RIGHT TO ALTER, AMEND, OR REPEAL. The right to alter, amend, or repeal this joint resolution is hereby expressly reserved.
SEC. 4. RESERVATIONS.To ensure participation of Federal agencies during the development of the allocation formula and participation in all technical working groups and meetings in which the terms and conditions of the allocation formula are negotiated and to preserve Federal discretion under law, the consent of Congress to, and participation of the United States in, the Apalachicola-Chattahoochee-Flint River Basin Compact, is subject to the following conditions and reservations: (1) Representatives of any Federal agency may attend any and all meetings of the Commission. (2) Upon the request of the Federal Commissioner, representatives of any Federal agency may participate in any meetings of technical committees, if any, of the Commission at which the basis or terms and conditions of the allocation formula or modifications to the allocation formula are to be discussed or negotiated. (3) The Federal Commissioner shall be given notice of any meeting of the Commission or any meeting of technical committees, if any, of the Commission at which compliance with the allocation formula by one or more officers, agencies, or instrumentalities of the United States is to be discussed. (4) Under the provisions of Article VII(a), the Federal Commissioner may submit a letter of concurrence with the allocation formula unanimously adopted by the State Commissioners within 255 days of such adoption. (5) No mediator shall be selected under Article XIII(b) or Article XIII(c) without the concurrence of the Federal Commissioner and no resolution of a dispute under Article XIII(c) shall be made binding on the United States without the concurrence of the Federal Commissioner. (6) The obligations of employees, agencies, and instrumentalities of the United States pursuant to Articles VII(b), X(a), and X(c) to exercise their discretion, to the maximum extent practicable, in a manner consistent with the allocation formula shall not be construed to interfere with the ability of such employees, agencies, and instrumentalities to take actions during emergency situations. (7) As among water right holders within any one State, nothing in this Compact shall be construed as affecting or intending to affect or in any way to interfere with the laws of the respective signatory States relating to riparian rights of the United States in and to the waters of the Apalachicola-Chattahoochee-Flint River Basin.
SEC. 5. EFFECTUATION. (a) Federal Agency Authority.— To carry out the purposes of this Compact, Federal agencies are authorized, as they may deem appropriate— 111 STAT. 2232 (1) to engage in cooperative relationships with the Commission; (2) to conduct studies and monitoring programs in cooperation with the Commission; (3) to enter into agreements to indemnify private landowners against liability that may arise from studies and monitoring programs undertaken in cooperation with the Commission; and (4) to furnish assistance, including the provision of services, facilities, and personnel, to the Federal Commissioner. (b) Appropriations .— Appropriations are authorized as necessary for implementing the Compact, including appropriations for carrying out the functions of the Federal Commissioner and alternates and for employment of personnel by the Federal Commissioner.
Approved November 20, 1997.
LEGISLATIVE HISTORY—H.J. Res. 91: HOUSE REPORTS: No. 105–369 (Comm. on the Judiciary). CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 4, considered and passed House.

Nov. 7, considered and passed Senate.

 Public Law 105–105: Granting the consent of Congress to the Alabama-Coosa-Tallapoosa River Basin Compact. Public Law 105 Public Law 105–105 111 Stat. 2233 1997-11-20 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105 public 111 STAT. 2233 Public Law 105–105 105th Congress
Joint Resolution Granting the consent of Congress to the Alabama-Coosa-Tallapoosa River Basin Compact.

Nov. 20, 1997

[H.J. Res. 92]

 Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,

Alabama.

Georgia.
SECTION 1. CONGRESSIONAL CONSENT. The Congress consents to the Alabama-Coosa-Tallapoosa River Basin Compact entered into by the States of Alabama and Georgia. The compact is substantially as follows: “Alabama-Coosa-Tallapoosa River Basin Compact “The States of Alabama and Georgia and the United States of America hereby agree to the following compact which shall become effective upon enactment of concurrent legislation by each respective state legislature and the Congress of the United States “SHORT TITLE “This Act shall be known and may be cited as the ‘Alabama-Coosa-Tallapoosa River Basin Compact’ and shall be referred to hereafter in this document as the ‘ACT Compact’ or ‘Compact’.
“ARTICLE I “COMPACT PURPOSES

Alabama-Coosa-Tallapoosa River Basin Compact.

 “This Compact among the States of Alabama and Georgia and the United States of America has been entered into for the purposes of promoting interstate comity, removing causes of present and future controversies, equitably apportioning the surface waters of the ACT, engaging in water planning, and developing and sharing common data bases.
“ARTICLE II “SCOPE OF THE COMPACT “This Compact shall extend to all of the waters arising within the drainage basin of the ACT in the states of Alabama and Georgia. 111 STAT. 2234
“ARTICLE III “PARTIES “The parties to this Compact are the states of Alabama and Georgia and the United States of America.
“ARTICLE IV “DEFINITIONS “For the purposes of this Compact, the following words, phrases and terms shall have the following meanings: “(a) ‘ACT Basin’ or ‘ACT’ means the area of natural drainage into the Alabama River and its tributaries, the Coosa River and its tributaries, and the Tallapoosa River and its tributaries. Any reference to the rivers within this Compact will be designated using the letters ‘ACT’ and when so referenced will mean each of these three rivers and each of the tributaries to each such river. “(b) ‘Allocation formula’ means the methodology, in whatever form, by which the ACT Basin Commission determines an equitable apportionment of surface waters within the ACT Basin among the two states. Such formula may be represented by a table, chart, mathematical calculation or any other expression of the Commission’s apportionment of waters pursuant to this compact. “(c) ‘Commission’ or ‘ACT Basin Commission’ means the Alabama-Coosa-Tallapoosa River Basin Commission created and established pursuant to this Compact. “(d) ‘Ground waters’ means waters within a saturated zone or stratum beneath the surface of land, whether or not flowing through known and definite channels. “(e) ‘Person’ means any individual, firm, association, organization, partnership, business, trust, corporation, public corporation, company, the United States of America, any state, and all political subdivisions, regions, districts, municipalities, and public agencies thereof. “(f) ‘Surface waters’ means waters upon the surface of the earth, whether contained in bounds created naturally or artificially or diffused. Water from natural springs shall be considered ‘surface waters’ when it exits from the spring onto the surface of the earth. “(g) “United States’ means the executive branch of the Government of the United States of America, and any department, agency, bureau or division thereof. “(h) “Water Resource Facility’ means any facility or project constructed for the impoundment, diversion, retention, control or regulation of waters within the ACT Basin for any purpose. “(i) “Water resources,’ or ‘waters’ means all surface waters and ground waters contained or otherwise originating within the ACT Basin. 111 STAT. 2235
“ARTICLE V “CONDITIONS PRECEDENT TO LEGAL VIABILITY OF THE COMPACT “This Compact shall not be binding on any party until it has been enacted into law by the legislatures of the States of Alabama and Georgia and by the Congress of the United States of America.
“ARTICLE VI “ACT BASIN COMMISSION CREATED “(a) There is hereby created an interstate administrative agency to be known as the ‘ACT Basin Commission.’ The Commission shall be comprised of one member representing the State of Alabama, one member representing the State of Georgia, and one non-voting member representing the United States of America. The State members shall be known as ‘State Commissioners’ and the Federal member shall be known as ‘Federal Commissioner.’ The ACT Basin Commission is a body politic and corporate, with succession for the duration of this Compact. “(b) The Governor of each of the States shall serve as the State Commissioner for his or her State. Each State Commissioner shall appoint one or more alternate members and one of such alternates as designated by the State Commissioner shall serve in the State Commissioner’s place and carry out the functions of the State Commissioner, including voting on Commission matters, in the event the State Commissioner is unable to attend a meeting of the Commission. The alternate members from each State shall be knowledgeable in the field of water resources management. Unless otherwise provided by law of the State for which an alternate State Commissioner is appointed, each alternate State Commissioner shall serve at the pleasure of the State Commissioner. In the event of a vacancy in the office of an alternate, it shall be filled in the same manner as an original appointment. “(c) The President of the United States of America shall appoint President, the Federal Commissioner who shall serve as the representative of all Federal agencies with an interest in the ACT. The President shall also appoint an alternate Federal Commissioner to attend and participate in the meetings of the Commission in the event the Federal Commissioner is unable to attend meetings. When at meetings, the alternate Federal Commissioner shall possess all of the powers of the Federal Commissioner. The Federal Commissioner and alternate appointed by the President shall serve until they resign or their replacements are appointed. “(d) Each state shall have one vote on the ACT Basin Commission and the Commission shall make all decisions and exercise all powers by unanimous vote of the two State Commissioners. The Federal Commissioner shall not have a vote but shall attend and participate in all meetings of the ACT Basin Commission to the same extent as the State Commissioners. “(e) The ACT Basin Commission shall meet at least once a year at a date set at its initial meeting. Such initial meeting shall take place within ninety days of the ratification of the Compact by the Congress of the United States and shall be called by the chairman of the Commission. Special meetings of the Commission may be called at the discretion of the chairman of the Commission 111 STAT. 2236and shall be called by the chairman of the Commission upon written request of any member of the Commission. All members shall be notified of the time and place designated for any regular or special meeting at least five days prior to such meeting in one of the following ways: by written notice mailed to the last mailing address given to the Commission by each member, by facsimile, telegram or by telephone. The Chairmanship of the Commission shall rotate annually among the voting members of the Commission on an alphabetical basis, with the first chairman to be the State Commissioner representing the State of Alabama. “(f) All meetings of the Commission shall be open to the public. “(g) The ACT Basin Commission, so long as the exercise of power is consistent with this Compact, shall have the following general powers: “(1) to adopt bylaws and procedures governing its conduct; “(2) to sue and be sued in any court of competent jurisdiction; “(3) to retain and discharge professional, technical, clerical and other staff and such consultants as are necessary to accomplish the purposes of this Compact; “(4) to receive funds from any lawful source and expend funds for any lawful purpose; “(5)

Contracts.

 to enter into agreements or contracts, where appropriate, in order to accomplish the purposes of this Compact; “(6) to create committees and delegate responsibilities; “(7) to plan, coordinate, monitor, and make recommendations for the water resources of the ACT Basin for the purposes of, but not limited to, minimizing adverse impacts of floods and droughts and improving water quality, water supply, and conservation as may be deemed necessary by the Commission; “(8) to participate with other governmental and non-governmental entities in carrying out the purposes of this Compact; “(9) to conduct studies, to generate information regarding the water resources of the ACT Basin, and to share this information among the Commission members and with others; “(10) to cooperate with appropriate state, federal, and local agencies or any other person in the development, ownership, sponsorship, and operation of water resource facilities in the ACT Basin; provided, however, that the Commission shall not own or operate a federally-owned water resource facility unless authorized by the United States Congress; “(11) to acquire, receive, hold and convey such personal and real property as may be necessary for the performance of its duties under the Compact; provided, however, that nothing in this Compact shall be construed as granting the ACT Basin Commission authority to issue bonds or to exercise any right of eminent domain or power of condemnation; “(12) to establish and modify an allocation formula for apportioning the surface waters of the ACT Basin among the states of Alabama and Georgia; and “(13) to perform all functions required of it by this Compact and to do all things necessary, proper or convenient in the performance of its duties hereunder, either independently or in cooperation with any state or the United States.
111 STAT. 2237
“ARTICLE VII “EQUITABLE APPORTIONMENT “(a) It is the intent of the parties to this Compact to develop an allocation formula for equitably apportioning the surface waters of the ACT Basin among the states while protecting the water quality, ecology and biodiversity of the ACT, as provided in the Clean Water Act, 33 U.S.C. Sections 1251 et seq., the Endangered Species Act, 16 U.S.C. Sections 1532 et seq., the National Environmental Policy Act, 42 U.S.C. Sections 4321 et seq., the Rivers and Harbors Act of 1899, 33 U.S.C. Sections 401 et seq., and other applicable federal laws. For this purpose, all members of the ACT Basin Commission, including the Federal Commissioner, shall have full rights to notice of and participation in all meetings of the ACT Basin Commission and technical committees in which the basis and terms and conditions of the allocation formula are to be discussed or negotiated. When an allocation formula is unanimously approved by the State Commissioners, there shall be an agreement among the states regarding an allocation formula. The allocation formula thus agreed upon shall become effective and binding upon the parties to this Compact upon receipt by the Commission of a letter of concurrence with said formula from the Federal Commissioner. If, however, the Federal Commissioner fails to submit a letter of concurrence to the Commission within two hundred ten (210) days after the allocation formula is agreed upon by the State Commissioners, the Federal Commissioner shall within forty-five (45) days thereafter submit to the ACT Basin Commission a letter of nonconcurrence with the allocation formula setting forth therein specifically and in detail the reasons for nonconcurrence; provided, however, the reasons for nonconcurrence as contained in the letter of nonconcurrence shall be based solely upon federal law. The allocation formula shall also become effective and binding upon the parties to this Compact if the Federal Commissioner fails to submit to the ACT Basin Commission a letter of nonconcurrence in accordance with this Article. Once adopted pursuant to this Article, the allocation formula may only be modified by unanimous decision of the State Commissioners and the concurrence by the Federal Commissioner in accordance with the procedures set forth in this Article. “(b) The parties to this Compact recognize that the United States operates certain projects within the ACT Basin that may influence the water resources within the ACT Basin. The parties to this Compact further acknowledge and recognize that various agencies of the United States have responsibilities for administering certain federal laws and exercising certain federal powers that may influence the water resources within the ACT Basin. It is the intent of the parties to this Compact, including the United States, to achieve compliance with the allocation formula adopted in accordance with this Article. Accordingly, once an allocation formula is adopted, each and every officer, agency, and instrumentality of the United States shall have an obligation and duty, to the maximum extent practicable, to exercise their powers, authority, and discretion in a manner consistent with the allocation formula so long as the exercise of such powers, authority, and discretion is not in conflict with federal law. 111 STAT. 2238 “(c) Between the effective date of this Compact and the approval of the allocation formula under this Article, the signatories to this Compact agree that any person who is withdrawing, diverting, or consuming water resources of the ACT Basin as of the effective date of this Compact, may continue to withdraw, divert or consume such water resources in accordance with the laws of the state where such person resides or does business and in accordance with applicable federal laws. The parties to this Compact further agree that any such person may increase the amount of water resources withdrawn, diverted or consumed to satisfy reasonable increases in the demand of such person for water between the effective date of this Compact and the date on which an allocation formula is approved by the ACT Basin Commission as permitted by applicable law. Each of the state parties to this Compact further agree to provide written notice to each of the other parties to this Compact in the event any person increases the withdrawal, diversion or consumption of such water resources by more than 10 million gallons per day on an average annual daily basis, or in the event any person, who was not withdrawing, diverting or consuming any water resources from the ACT Basin as of the effective date of this Compact, seeks to withdraw, divert or consume more than one million gallons per day on an average annual daily basis from such resources. This Article shall not be construed as granting any permanent, vested or perpetual rights to the amounts of water used between January 3, 1992 and the date on which the Commission adopts an allocation formula. “(d) As the owner, operator, licensor, permitting authority or regulator of a water resource facility under its jurisdiction, each state shall be responsible for using its best efforts to achieve compliance with the allocation formula adopted pursuant to this Article. Each such state agrees to take such actions as may be necessary to achieve compliance with the allocation formula. “(e) This Compact shall not commit any state to agree to any data generated by any study or commit any state to any allocation formula not acceptable to such state.
“ARTICLE VIII “CONDITIONS RESULTING IN TERMINATION OF THE COMPACT “(a) This Compact shall be terminated and thereby be void and of no further force and effect if any of the following events occur: “(1) The legislatures of the states of Alabama and Georgia each agree by general laws enacted by each state within any three consecutive years that this Compact should be terminated. “(2) The United States Congress enacts a law expressly repealing this Compact. “(3) The States of Alabama and Georgia fail to agree on an equitable apportionment of the surface waters of the ACT as provided in Article VII(a) of this Compact by December 31, 1998, unless the voting members of the ACT Basin Commission unanimously agree to extend this deadline. “(4) The Federal Commissioner submits to the Commission a letter of nonconcurrence in the initial allocation formula in accordance with Article VII(a) of the Compact, unless the voting members 111 STAT. 2239of the ACT Basin Commission unanimously agree to allow a single 45 day period in which the non-voting Federal Commissioner and the voting State Commissioners may renegotiate an allocation formula and the Federal Commissioner withdraws the letter of nonconcurrence upon completion of this renegotiation. “(b) If the Compact is terminated in accordance with this Article it shall be of no further force and effect and shall not be the subject of any proceeding for the enforcement thereof in any federal or state court. Further, if so terminated, no party shall be deemed to have acquired a specific right to any quantity of water because it has become a signatory to this Compact.
“ARTICLE IX “COMPLETION OF STUDIES PENDING ADOPTION OF ALLOCATION FORMULA “The ACT Basin Commission, in conjunction with one or more interstate, federal, state or local agencies, is hereby authorized to participate in any study in process as of the effective date of this Compact, including, without limitation, all or any part of the Alabama-Coosa-Tallapoosa/Apalachicola-Chattahoochee-Flint River Basin Comprehensive Water Resource Study, as may be determined by the Commission in its sole discretion.
“ARTICLE X “RELATIONSHIP TO OTHER LAWS “(a) It is the intent of the party states and of the United States Congress by ratifying this Compact, that all state and federal officials enforcing, implementing or administering other state and federal laws affecting the ACT Basin shall, to the maximum extent practicable, enforce, implement or administer those laws in furtherance of the purposes of this Compact and the allocation formula adopted by the Commission insofar as such actions are not in conflict with applicable federal laws. “(b) Nothing contained in this Compact shall be deemed to restrict the executive powers of the President in the event of a national emergency. “(c) Nothing contained in this Compact shall impair or affect the constitutional authority of the United States or any of its powers, rights, functions or jurisdiction under other existing or future laws in and over the area or waters which are the subject of the Compact, including projects of the Commission, nor shall any act of the Commission nave the effect of repealing, modifying or amending any federal law. All officers, agencies and instrumentalities of the United States shall exercise their powers and authority over water resources in the ACT Basin and water resource facilities, and to the maximum extent practicable, shall exercise their discretion in carrying out their responsibilities, powers, and authorities over water resources in the ACT Basin and water resource facilities in the ACT Basin in a manner consistent with and that effectuates the allocation formula developed pursuant to this Compact or any modification of the allocation formula so long as the actions are not in conflict with any applicable federal law. The United States Army Corps of Engineers, or its successors, and all other federal agencies and instrumentalities shall cooperate 111 STAT. 2240with the ACT Basin Commission in accomplishing the purposes of the Compact and fulfilling the obligations of each of the parties to the Compact regarding the allocation formula. “(d) Once adopted by the two states and ratified by the United States Congress, this Compact shall have the full force and effect of federal law, and shall supersede state and local laws operating contrary to the provisions herein or the purposes of this Compact; provided, however, nothing contained in this Compact shaft be construed as affecting or intending to affect or in any way to interfere with the laws of the respective signatory states relating to water quality, and riparian rights as among persons exclusively within each state.
“ARTICLE XI “PUBLIC PARTICIPATION “All meetings of the Commission shall be open to the public. The signatory parties recognize the importance and necessity of public participation in activities of the Commission, including the development and adoption of the initial allocation formula and any modification thereto. Prior to the adoption of the initial allocation formula, the Commission shall adopt procedures ensuring public participation in the development, review, and approval of the initial allocation formula and any subsequent modification thereto. At a minimum, public notice to interested parties and a comment period shall be provided. The Commission shall respond in writing to relevant comments.
“ARTICLE XII “FUNDING AND EXPENSES OF THE COMMISSION “Commissioners shall serve without compensation from the ACT Basin Commission. All general operational funding required by the Commission and agreed to by the voting members shall obligate each state to pay an equal share of such agreed upon funding. Funds remitted to the Commission by a state in payment of such obligation shall not lapse; provided, however, that if any state fails to remit payment within 90 days after payment is due, such obligation shall terminate and any state which has made payment may have such payment returned. Costs of attendance and participation at meetings of the Commission by the Federal Commissioner shall be paid by the United States.
“ARTICLE XIII “DISPUTE RESOLUTION “(a) In the event of a dispute between the voting members of this Compact involving a claim relating to compliance with the allocation formula adopted by the Commission under this Compact, the following procedures shall govern: “(1) Notice of claim shall be filed with the Commission by a voting member of this Compact and served upon each member of the Commission. The notice shall provide a written statement of the claim, including a brief narrative of the relevant matters supporting the claimant’s position. 111 STAT. 2241 “(2) Within twenty (20) days of the Commission’s receipt of a written statement of a claim, the party or parties to the Compact against whom the complaint is made may prepare a brief narrative of the relevant matters and file it with the Commission and serve it upon each member of the Commission. “(3) Upon receipt of a claim and any response or responses thereto, the Commission shall convene as soon as reasonably practicable, but in no event later than twenty (20) days from receipt of any response to the claim, and shall determine if a resolution of the dispute is possible. “(4) A resolution of a dispute under this Article through unanimous vote of the State Commissioners shall be binding upon the state parties and any state party determined to be in violation of the allocation formula shall correct such violation without delay. “(5) If the Commission is unable to resolve the dispute within 10 days from the date of the meeting convened pursuant to subparagraph (a)(3) of this Article, the Commission shall select, by unanimous decision of the voting members of the Commission, an independent mediator to conduct a non-binding mediation of the dispute. The mediator shall not be a resident or domiciliary of any member state, shall not be an employee or agent of any member of the Commission, shall be a person knowledgeable in water resource management issues, and shall disclose any and all current or prior contractual or other relations to any member of the Commission. The expenses of the mediator shall be paid by the Commission. If the mediator becomes unwilling or unable to serve, the Commission by unanimous decision of the voting members of the Commission, shall appoint another independent mediator. “(6) If the Commission fails to appoint an independent mediator to conduct a non-binding mediation of the dispute within seventy-five (75) days of the filing of the original claim or within thirty (30) days of the date on which the Commission learns that a mediator is unwilling or unable to serve, the party submitting the claim shall have no further obligation to bring the claim before the Commission and may proceed by pursuing any appropriate remedies, including any and all judicial remedies. “(7) If an independent mediator is selected, the mediator shall establish the time and location for the mediation session or sessions and may request that each party to the Compact submit, in writing, to the mediator a statement of its position regarding the issue or issues in dispute. Such statements shall not be exchanged by the parties except upon the unanimous agreement of the parties to the mediation. “(8) The mediator shall not divulge confidential information disclosed to the mediator by the parties or by witnesses, if any, in the course of the mediation. All records, reports, or other documents received by a mediator while serving as a mediator shall be considered confidential. The mediator shall not be compelled in any adversary proceeding or judicial forum to divulge the contents of such documents or the fact that such documents exist or to testify in regard to the mediation. “(9) Each party to the mediation shall maintain the confidentiality of the information received during the mediation and shall not rely on or introduce in any judicial proceeding as evidence: “a. Views expressed or suggestions made by another party regarding a settlement of the dispute; “b. Proposals made or views expressed by the mediator; or 111 STAT. 2242 “c. The fact that another party to the hearing had or had not indicated a willingness to accept a proposal for settlement of the dispute. “(10) The mediator may terminate the non-binding mediation session or sessions whenever, in the judgment of the mediator, further efforts to resolve the dispute would not lead to a resolution of the dispute between or among the parties. Any party to the dispute may terminate the mediation process at any time by giving written notification to the mediator and the Commission. If terminated prior to reaching a resolution, the party submitting the original claim to the Commission shall have no further obligation to bring its claim before the Commission and may proceed by pursuing any appropriate remedies, including any and all judicial remedies. “(11) The mediator shall have no authority to require the parties to enter into a settlement of any dispute regarding the Compact. The mediator may simply attempt to assist the parties in reaching a mutually acceptable resolution of their dispute. The mediator is authorized to conduct joint and separate meetings with the parties to the mediation and to make oral or written recommendations for a settlement of the dispute. “(12) At any time during the mediation process, the Commission is encouraged to take whatever steps it deems necessary to assist the mediator or the parties to resolve the dispute. “(13) In the event of a proceeding seeking enforcement of the allocation formula, this Compact creates a cause of action solely for equitable relief. No action for money damages may be maintained. The party or parties alleging a violation of the Compact shall have the burden of proof. “(b) In the event of a dispute between any voting member and the United States relating to a state’s noncompliance with the allocation formula as a result of actions or a refusal to act by officers, agencies or instrumentalities of the United States, the provisions set forth in paragraph (a) of this Article (other than the provisions of subparagraph (a)(4)) shall apply. “(c) The United States may initiate dispute resolution under paragraph (a) in the same manner as other parties to this Compact. “(d) Any signatory party who is affected by any action of the Commission, other than the adoption or enforcement of or compliance with the allocation formula, may file a complaint before the ACT Basin Commission seeking to enforce any provision of this Compact. “(1) The Commission shall refer the dispute to an independent hearing officer or mediator, to conduct a hearing or mediation of the dispute. If the parties are unable to settle their dispute through mediation, a hearing shall be held by the Commission or its designated hearing officer. Following a hearing conducted by a hearing officer, the hearing officer shall submit a report to the Commission setting forth findings of fact and conclusions of law, and making recommendations to the Commission for the resolution of the dispute. “(2) The Commission may adopt or modify the recommendations of the hearing officer within 60 days of submittal of the report. If the Commission is unable to reach unanimous agreement on the resolution of the dispute within 60 days of submittal of the report with the concurrence of the Federal Commissioner in disputes involving or affecting federal interests, the affected party may file 111 STAT. 2243an action in any court of competent jurisdiction to enforce the provisions of this Compact. The hearing officer’s report shall be of no force and effect and shall not be admissible as evidence in any further proceedings. “(e) All actions under this Article shall be subject to the following provisions: “(1) The Commission shall adopt guidelines and procedures for the appointment of hearing officers or independent mediators to conduct all hearings and mediations required under this Article. The hearing officer or mediator appointed under this Article shall be compensated by the Commission. “(2) All hearings or mediations conducted under this article may be conducted utilizing the Federal Administrative Procedures Act, the Federal Rules of Civil Procedure, and the Federal Rules of Evidence. The Commission may also choose to adopt some or all of its own procedural and evidentiary rules for the conduct of hearings or mediations under this Compact. “(3) Any action brought under this Article shall be limited to equitable relief only. This Compact shall not give rise to a cause of action for money damages. “(4) Any signatory party bringing an action before the Commission under this Article shall have the burdens of proof and persuasion.
“ARTICLE XIV “ENFORCEMENT “The Commission may, upon unanimous decision, bring an action against any person to enforce any provision of this Compact, other than the adoption or enforcement of or compliance with the allocation formula, in any court of competent jurisdiction.
“ARTICLE XV “IMPACTS ON OTHER STREAM SYSTEMS “This Compact shall not be construed as establishing any general principle or precedent applicable to any other interstate streams.
“ARTICLE XVI “IMPACT OF COMPACT ON USE OF WATER WITHIN THE BOUNDARIES OF THE COMPACTING STATES ‘The provisions of this Compact shall not interfere with the right or power of any state to regulate the use and control of water within the boundaries of the state, providing such state action is not inconsistent with the allocation formula.
“ARTICLE XVII “AGREEMENT REGARDING WATER QUALITY “(a) The States of Alabama and Georgia mutually agree to the principle of individual State efforts to control man-made water pollution from sources located and operating within each State 111 STAT. 2244and to the continuing support of each State in active water pollution control programs. “(b) The States of Alabama and Georgia agree to cooperate, through their appropriate State agencies, in the investigation, abatement, and control of sources of alleged interstate pollution within the ACT River Basin whenever such sources are called to their attention by the Commission. “(c) The States of Alabama and Georgia agree to cooperate in maintaining the quality of the waters of the ACT River Basin. “(d) The States of Alabama and Georgia agree that no State may require another state to provide water for the purpose of water quality control as a substitute for or in lieu of adequate waste treatment.
“ARTICLE XVIII “EFFECT OF OVER OR UNDER DELIVERIES UNDER THE COMPACT “No state shall acquire any right or expectation to the use of water because of any other state’s failure to use the full amount of water allocated to it under this Compact.
“ARTICLE XIX “SEVERABILITY “If any portion of this Compact is held invalid for any reason, the remaining portions, to the fullest extent possible, shall be severed from the void portion and given the fullest possible force, effect, and application.
“ARTICLE XX “NOTICE AND FORMS OF SIGNATURE “Notice of ratification of this Compact by the legislature of each state shall promptly be given by the Governor of the ratifying state to the Governor of the other participating state. When the two state legislatures have ratified the Compact, notice of their mutual ratification shall be forwarded to the Congressional delegation of the signatory states for submission to the Congress of the United States for ratification. When the Compact is ratified by the Congress of the United States, the President, upon signing the federal ratification legislation, shall promptly notify the Governors of the participating states and appoint the Federal Commissioner. The Compact shall be signed by all three Commissioners as their first order of business at their first meeting and shall be filed of record in the party states.”.
SEC. 2. INCONSISTENCY OF LANGUAGE. The validity of the Compact consented to by this Act shall not be affected by any insubstantial difference in its form or language as adopted by the States.
SEC. 3. RIGHT TO ALTER, AMEND, OR REPEAL. The right to alter, amend, or repeal this joint resolution is hereby expressly reserved.
111 STAT. 2245
SEC. 4. RESERVATIONS. To ensure participation of Federal agencies during the development of the allocation formula and participation in all technical working groups and meetings in which the terms and conditions of the allocation formula are negotiated and to preserve Federal discretion under law, the consent of Congress to, and participation of the United States in, the Alabama-Coosa-Tallapoosa River Basin Compact, is subject to the following conditions and reservations: (1) Representatives of any Federal agency may attend any and all meetings of the Commission. (2) Upon the request of the Federal Commissioner, representatives of any Federal agency may participate in any meetings of technical committees, if any, of the Commission at which the basis or terms and conditions of the allocation formula or modifications to the allocation formula are to be discussed or negotiated. (3) The Federal Commissioner shall be given notice of any meeting of the Commission or any meeting of technical committees, if any, of the Commission at which compliance with the allocation formula by one or more officers, agencies, or instrumentalities of the United States is to be discussed. (4) Under the provisions of Article VII(a), the Federal Commissioner may submit a letter of concurrence with the allocation formula unanimously adopted by the State Commissioners within 255 days of such adoption. (5) No mediator shall be selected under Article XII(b) or Article XIII(c) without the concurrence of the Federal Commissioner and no resolution of a dispute under Article XIII(c) shall be made binding on the United States without the concurrence of the Federal Commissioner. (6) The obligations of employees, agencies, and instrumentalities of the United States pursuant to Articles VII(b), X(a), and X(c) to exercise their discretion, to the maximum extent practicable, in a manner consistent with the allocation formula shall not be construed to interfere with the ability of such employees, agencies, and instrumentalities to take actions during emergency situations. (7) As among water right holders within any one State, nothing in this Compact shall be construed as affecting or intending to affect or in any way to interfere with the laws of the respective signatory States relating to riparian rights of the United States in and to the waters of the Alabama-Coosa-Tallapoosa River Basin.
SEC. 5. EFFECTUATION. (a) Federal Agency Authority.— To carry out the purposes of this Compact, Federal agencies are authorized, as they may deem appropriate— (1) to engage in cooperative relationships with the Commission; (2) to conduct studies and monitoring programs in cooperation with the Commission; (3) to enter into agreements to indemnify private landowners against liability that may arise from studies and monitoring programs undertaken in cooperation with the Commission; and 111 STAT. 2246 (4) to furnish assistance, including the provision of services, facilities, and personnel, to the Federal Commissioner. (b) Appropriations.— Appropriations are authorized as necessary for implementing the Compact, including appropriations for carrying out the functions of the Federal Commissioner and alternates and for employment of personnel by the Federal Commissioner.
Approved November 20, 1997.
LEGISLATIVE HISTORY—H.J. Res. 92: HOUSE REPORTS: No. 105–370 (Comm. on the Judiciary). CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 4, considered and passed House.

Nov. 7, considered and passed Senate.

 Public Law 105–106: To provide for the acquisition of the Plains Railroad Depot at the Jimmy Carter National Historic Site. Public Law106 Public Law 105–106 111 Stat. 2247 1997-11-20 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2247 Public Law105–106 105th Congress
An Act To provide for the acquisition of the Plains Railroad Depot at the Jimmy Carter National Historic Site.

Nov. 20, 1997

[S. 669]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. ACQUISITION OF PLAINS RAILROAD DEPOT.

16 USC 461 note.

 Section 1(c)(2) of the Act entitled “An Act to establish the Jimmy Carter National Historic Site and Preservation District in the State of Georgia, and for other purposes”, approved December 23, 1987 (16 U.S.C. 161 note; 101 Stat. 1435), is amended by striking “, the Plains Railroad Depot (described in subsection (b)(2)(B)),”.
Approved November 20, 1997.
LEGISLATIVE HISTORY—S. 669: SENATE REPORTS: No. 106–39 (Comm. on Energy and Natural Resources). CONGRESSIONAL RECORD, Vol. 143 (1997):

July 11, considered and passed Senate.

Nov. 9, considered and passed House.

 Public Law 105–107: To authorize appropriations for fiscal year 1998 for intelligence and intelligence-related activities of the United States Government, the Community Management Account, and the Central Intelligence Agency Retirement and Disability System, and for other purposes. Public Law107 Public Law 105–107 111 Stat. 2248 1997-11-20 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2248 Public Law105–107 105th Congress
An Act To authorize appropriations for fiscal year 1998 for intelligence and intelligence-related activities of the United States Government, the Community Management Account, and the Central Intelligence Agency Retirement and Disability System, and for other purposes.

Nov. 20, 1997

[S. 858]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Intelligence Authorization Act for Fiscal Year 1998.
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.—This Act may be cited as the “Intelligence Authorization Act for Fiscal Year 1998”. (b) Table of Contents.—The table of contents for this Act is as follows: Sec. 1. TITLE I— Sec. 101. Sec. 102. Sec. 103. Sec. 104. TITLE II— Sec. 201. TITLE III— Sec. 301. Sec. 302. Sec. 303. Sec. 304. Sec. 305. Sec. 306. Sec. 307. Sec. 308. Sec. 309. Sec. 310. Sec. 311. TITLE IV— Sec. 401. Sec. 402. Sec. 403. Sec. 404. Sec. 405. TITLE V— Sec. 111 STAT. 2249 Sec. 502. Sec. 503.
<num value="I">TITLE I—</num><heading>INTELLIGENCE ACTIVITIES</heading> <section><num value="101">SEC. 101. </num><heading>AUTHORIZATION OF APPROPRIATIONS.</heading> <chapeau>Funds are hereby authorized to be appropriated for fiscal year 1998 for the conduct of the intelligence and intelligence-related activities of the following elements of the United States Government:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The Central Intelligence Agency.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The Department of Defense.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The Defense Intelligence Agency.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The National Security Agency.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>The Department of the Army, the Department of the Navy, and the Department of the Air Force.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>The Department of State.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>The Department of the Treasury.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>The Department of Energy.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><content>The Federal Bureau of Investigation.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10) </num><content>The Drug Enforcement Administration.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="11">(11) </num><content>The National Reconnaissance Office.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="12">(12) </num><content>The National Imagery and Mapping Agency.</content></paragraph> </section> <section><num value="102">SEC. 102. </num><heading>CLASSIFIED SCHEDULE OF AUTHORIZATIONS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Specifications of Amounts and Personnel Ceilings</inline>.—</heading><content>The amounts authorized to be appropriated under section 101, and the authorized personnel ceilings as of September 30, 1998, for the conduct of the intelligence and intelligence-related activities of the elements listed in such section, are those specified in the classified Schedule of Authorizations prepared to accompany the conference report on the bill S. 858 of the One Hundred Fifth Congress.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Availability of Classified Schedule of Authorizations</inline>.—</heading><content>The Schedule of Authorizations shall be made available to the Committees on Appropriations of the Senate and House of Representatives and to the President. The President shall provide for suitable distribution of the Schedule, or of appropriate portions of the Schedule, within the Executive Branch.</content></subsection></section> <section><num value="103">SEC. 103. </num><heading>PERSONNEL CEILING ADJUSTMENTS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Authority for Adjustments</inline>.—</heading><content>With the approval of the Director of the Office of Management and Budget, the Director of Central Intelligence may authorize employment of civilian personnel in excess of the number authorized for fiscal year 1998 under section 102 when the Director of Central Intelligence determines that such action is necessary to the performance of important intelligence functions, except that the number of personnel employed in excess of the number authorized under such section may not, for any element of the intelligence community, exceed two percent of the number of civilian personnel authorized under such section for such element.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Notice to Intelligence Committees</inline>.—</heading><content>The Director of Central Intelligence shall promptly notify the Permanent Select Committee on Intelligence of the House of Representatives and <page identifier="/us/stat/111/2250">111 STAT. 2250</page>the Select Committee on Intelligence of the Senate whenever the Director exercises the authority granted by this section.</content></subsection></section> <section><num value="104">SEC. 104. </num><heading>COMMUNITY MANAGEMENT ACCOUNT.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Authorization of Appropriations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Authorization</inline>.—</heading><content>There is authorized to be appropriated for the Community Management Account of the Director of Central Intelligence for fiscal year 1998 the sum of $121,580,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Availability of certain funds</inline>.—</heading><content>Within such amount, funds identified in the classified Schedule of Authorizations referred to in section 102(a) for the Advanced Research and Development Committee and the Environmental Intelligence and Applications Program shall remain available until September 30, 1999.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Authorized Personnel Levels</inline>.—</heading><content>The elements within the Community Management Account of the Director of Central Intelligence are authorized a total of 283 full-time personnel as of September 30, 1998. Personnel serving in such elements may be permanent employees of the Community Management Account element or personnel detailed from other elements of the United States Government.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Classified Authorizations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Authorization of appropriations</inline>.—</heading><content>In addition to amounts authorized to be appropriated for the Community Management Account by subsection (a), there is also authorized to be appropriated for the Community Management Account for fiscal year 1998 such additional amounts as are specified in the classified Schedule of Authorizations referred to in section 102(a).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Authorization of personnel</inline>.—</heading><content>In addition to the personnel authorized by subsection (b) for elements of the Community Management Account as of September 30, 1998, there is hereby authorized such additional personnel for such elements as of that date as is specified in the classified Schedule of Authorizations.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Reimbursement</inline>.—</heading><content>Except as provided in section 113 of the National Security Act of 1947 (as added by section 303 of this Act), during fiscal year 1998, any officer or employee of the United States or member of the Armed Forces who is detailed to the staff of an element within the Community Management Account from another element of the United States Government shall be detailed on a reimbursable basis, except that any such officer, employee, or member may be detailed on a nonreimbursable basis for a period of less than one year for the performance of temporary functions as required by the Director of Central Intelligence.</content></subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s873">21 USC 873</ref> note.</p></sidenote><heading><inline class="smallCaps">National Drug Intelligence Center</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>Of the amount authorized to be appropriated in subsection (a), the amount of $27,000,000 shall be available for the National Drug Intelligence Center. Within such amount, funds provided for research, development, test, and evaluation purposes shall remain available until September 30, 1999, and funds provided for procurement purposes shall remain available until September 30, 2000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Transfer of funds</inline>.—</heading><content>The Director of Central Intelligence shall transfer to the Attorney General of the United States funds available for the National Drug Intelligence Center <page identifier="/us/stat/111/2251">111 STAT. 2251</page>under paragraph (1). The Attorney General shall utilize funds so transferred for the activities of the Center.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Limitation.</inline>—</heading><content>Amounts available for the Center may not be used in contravention of the provisions of section 103(d)(1) of the National Security Act of 1947 (50 U.S.C. 403–3(d)(1).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><heading><inline class="smallCaps">Authority</inline>.—</heading><content>Notwithstanding any other provision of law, the Attorney General shall retain full authority over the operations of the Center.</content></paragraph></subsection></section> <num value="I">TITLE II—</num><heading>CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM</heading> <section><num value="201">SEC. 201. </num><heading>AUTHORIZATION OF APPROPRIATIONS.</heading> <content>There is authorized to be appropriated for the Central Intelligence Agency Retirement and Disability Fund for fiscal year 1998 the sum of $196,900,000.</content></section> <num value="I">TITLE III—</num><heading>GENERAL PROVISIONS</heading> <section><num value="301">SEC. 301. </num><heading>INCREASE IN EMPLOYEE COMPENSATION AND BENEFITS AUTHORIZED BY LAW.</heading> <content>Appropriations authorized by this Act for salary, pay, retirement, and other benefits for Federal employees may be increased by such additional or supplemental amounts as may be necessary for increases in such compensation or benefits authorized by law.</content></section> <section><num value="302">SEC. 302. </num><heading>RESTRICTION ON CONDUCT OF INTELLIGENCE ACTIVITIES.</heading> <content>The authorization of appropriations by this Act shall not be deemed to constitute authority for the conduct of any intelligence activity which is not otherwise authorized by the Constitution or the laws of the United States.</content></section> <section><num value="303">SEC. 303. </num><heading>DETAIL OF INTELLIGENCE COMMUNITY PERSONNEL.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>Title I of the National Security Act of 1947 (50 U.S.C. 401 et seq.) is amended by adding at the end the following new section: <quotedContent><section><heading>“DETAIL OF INTELLIGENCE COMMUNITY PERSONNEL—INTELLIGENCE COMMUNITY ASSIGNMENT PROGRAM</heading> <num value="113"><inline class="smallCaps">“Sec.</inline> 113. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Detail</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Notwithstanding any other provision <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t50/s404h">50 USC 404h</ref>.</p></sidenote>of law, the head of a department with an element in the intelligence community or the head of an intelligence community agency or element may detail any employee within that department, agency, or element to serve in any position in the Intelligence Community Assignment Program on a reimbursable or a nonreimbursable basis.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>Nonreimbursable details may be for such periods as are agreed to between the heads of the parent and host agencies, up to a maximum of three years, except that such details may be extended for a period not to exceed one year when the heads of the parent and host agencies determine that such extension is in the public interest.</content></paragraph></subsection> <page identifier="/us/stat/111/2252">111 STAT. 2252</page> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><heading><inline class="smallCaps">Benefits, Allowances, Travel, Incentives.</inline>—</heading><content>An employee detailed under subsection (a) may be authorized any benefit, allowance, travel, or incentive otherwise provided to enhance staffing by the organization from which the employee is detailed.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><heading><inline class="smallCaps">Annual Report</inline>.—</heading><content>Not later than March 1, 1999, and annually thereafter, the Director of Central Intelligence shall submit to the Permanent Select Committee on Intelligence of the House of Representatives and the Select Committee on Intelligence of the Senate a report describing the detail of intelligence community personnel pursuant to subsection (a) during the 12-month period ending on the date of the report. The report shall set forth the number of personnel detailed, the identity of parent and host agencies or elements, and an analysis of the benefits of the details.”.</content></subsection></section></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Technical Amendment.</inline>—</heading><content>Sections 120, 121, and 110 of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t50/s404e">50 USC 404e</ref>, <ref href="/us/usc/t50/s404f">404f</ref>, <ref href="/us/usc/t50/s404d-1">404d–1</ref>, <ref href="/us/usc/t50/s404g">404g</ref>.</p></sidenote>the National Security Act of 1947 are hereby redesignated as sections 110, 111, and 112, respectively.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of contents in the first section of such Act is amended by striking out the items relating to sections 120, 121, and 110 and inserting in lieu thereof the following: <quotedContent><toc><referenceItem role="section"><designator>“Sec. 110. </designator><label>National mission of National Imagery and Mapping Agency.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 111. </designator><label>Collection tasking authority.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 112. </designator><label>Restrictions on intelligence sharing with the United Nations.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 113. </designator><label>Detail of intelligence community personnel—intelligence community assignment program.”.</label></referenceItem></toc></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t50/s404h">50 USC 404h</ref> note.</p></sidenote><heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall apply to an employee on detail on or after January 1, 1997.</content></subsection></section> <section><num value="304">SEC. 304. </num><heading>EXTENSION OF APPLICATION OF SANCTIONS LAWS TO INTELLIGENCE ACTIVITIES.</heading> <content>Section 905 of the National Security Act of 1947 (50 U.S.C. 441d) is amended by striking out “January 6, 1998” and inserting in lieu thereof “January 6, 1999”.</content></section> <section><num value="305">SEC. 305. </num><heading>SENSE OF CONGRESS ON INTELLIGENCE COMMUNITY CONTRACTING.</heading> <content>It is the sense of Congress that the Director of Central Intelligence should continue to direct that elements of the intelligence community, whenever compatible with the national security interests of the United States and consistent with operational and security concerns related to the conduct of intelligence activities, and where fiscally sound, should competitively award contracts in a manner that maximizes the procurement of products properly designated as having been made in the United States.</content></section> <section><num value="306">SEC. 306. </num><heading>SENSE OF CONGRESS ON RECEIPT OF CLASSIFIED INFORMATION.</heading> <content>It is the sense of Congress that Members of Congress have equal standing with officials of the Executive Branch to receive classified information so that Congress may carry out its oversight responsibilities under the Constitution.</content></section> <section><num value="307">SEC. 307. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s2715a">22 USC 2715a</ref>.</p></sidenote> <heading>PROVISION OF INFORMATION ON CERTAIN VIOLENT CRIMES ABROAD TO VICTIMS AND VICTIMS’ FAMILIES.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Sense of Congress</inline>.—</heading><chapeau>It is the sense of Congress that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>it is in the national interests of the United States to provide information regarding the killing, abduction, torture, <page identifier="/us/stat/111/2253">111 STAT. 2253</page>or other serious mistreatment of United States citizens abroad to the victims of such crimes, or the families of victims of such crimes if they are United States citizens; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the provision of such information is sufficiently important that the discharge of the responsibility for identifying and disseminating such information should be vested in a cabinet-level officer of the United States Government.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Responsibility</inline>.—</heading><chapeau>The Secretary of State shall take appropriate actions to ensure that the United States Government takes all appropriate actions to—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>identify promptly information (including classified information) in the possession of the departments and agencies of the United States Government regarding the killing, abduction, torture, or other serious mistreatment of United States citizens abroad; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>subject to subsection (c), promptly make such information available to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the victims of such crimes; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>when appropriate, the family members of the victims of such crimes if such family members are United States citizens.</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Limitations</inline>.—</heading><content>The Secretary shall work with the heads of appropriate departments and agencies of the United States Government in order to ensure that information relevant to a crime covered by subsection (b) is promptly reviewed and, to the maximum extent practicable, without jeopardizing sensitive sources and methods or other vital national security interests, or without jeopardizing an on-going criminal investigation or proceeding, made available under that subsection unless such disclosure is specifically prohibited by law.</content></subsection></section> <section><num value="308">SEC. 308. </num><heading>ANNUAL REPORTS ON INTELLIGENCE ACTIVITIES OF THE PEOPLE’S REPUBLIC OF CHINA.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t50/s402a">50 USC 402a</ref> note.</p></sidenote> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Report to Congress.</inline>—</heading><content>Not later than 90 days after the date of enactment of this Act and annually thereafter, the Director of Central Intelligence and the Director of the Federal Bureau of Investigation, jointly and in consultation with the heads of other appropriate Federal agencies, including the National Security Agency and the Departments of Defense, Justice, Treasury, and State, shall prepare and transmit to Congress a report on intelligence activities of the People’s Republic of China directed against or affecting the interests of the United States.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Delivery of Report</inline>.—</heading><content>The Director of Central Intelligence and the Director of the Federal Bureau of Investigation shall jointly transmit classified and unclassified versions of the report to the Sneaker and Minority leader of the House of Representatives, the Majority and Minority leaders of the Senate, the Chairman and Ranking Member of the Permanent Select Committee on Intelligence of the House of Representatives, and the Chairman and Vice-Chairman of the Select Committee on Intelligence of the Senate.</content></subsection></section> <section><num value="309">SEC. 309. </num><heading>STANDARDS FOR SPELLING OF FOREIGN NAMES AND PLACES AND-FOR USE OF GEOGRAPHIC COORDINATES.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t50/s403–3">50 USC 403–3</ref> note.</p></sidenote> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Survey of Current Standards</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Survey.</inline>—</heading><content>The Director of Central Intelligence shall carry out a survey of current standards for the spelling of foreign names and places, and the use of geographic coordinates <page identifier="/us/stat/111/2254">111 STAT. 2254</page>for such places, among the elements of the intelligence community.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than 90 days after the date of enactment of this Act, the Director shall submit to the congressional intelligence committees a report on the survey carried out under paragraph (1). The report shall be submitted in unclassified form, but may include a classified annex.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Guidelines.—</inline></heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Issuance</inline>.—</heading><content>Not later than 180 days after the date of enactment of this Act, the Director shall issue guidelines to ensure the use of uniform spelling of foreign names and places and the uniform use of geographic coordinates for such places. The guidelines shall apply to all intelligence reports, intelligence products, and intelligence databases prepared and utilized by the elements of the intelligence community.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Basis</inline>.—</heading><content>The guidelines under paragraph (1) shall, to the maximum extent practicable, be based on current United States Government standards for the transliteration of foreign names, standards for foreign place names developed by the Board on Geographic Names, and a standard set of geographic coordinates.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Submittal to congress</inline>.—</heading><content>The Director shall submit a copy of the guidelines to the congressional intelligence committees.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Congressional Intelligence Committees Defined</inline>.—</heading><chapeau>In this section, the term “congressional intelligence committees” means the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The Select Committee on Intelligence of the Senate.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The Permanent Select Committee on Intelligence of the House of Representatives.</content></paragraph></subsection></section> <section><num value="310">SEC. 310. </num><heading>REVIEW OF STUDIES ON CHEMICAL WEAPONS IN THE PERSIAN GULF DURING THE PERSIAN GULF WAR.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Review</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>Not later than May 31, 1998, the Inspector General of the Central Intelligence Agency shall complete a review of the studies conducted by the Federal Government regarding the presence, use, or destruction of chemical weapons in the Persian Gulf theater of operations during the Persian Gulf War.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Purpose</inline>.—</heading><chapeau>The purpose of the review is to identify any additional investigation or research that may be necessary—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>to determine fully and completely the extent of Central Intelligence Agency knowledge of the presence, use, or destruction of such weapons in that theater of operations during that war; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>with respect to any other issue relating to the presence, use, or destruction of such weapons in that theater of operations during that war that the Inspector General considers appropriate.</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Report on Review.</inline>—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Requirement</inline>.—</heading><content>Upon the completion of the review, the Inspector General shall submit to the Select Committee on Intelligence of the Senate and the Permanent Select Committee on Intelligence of the House of Representatives a report <page identifier="/us/stat/111/2255">111 STAT. 2255</page>on the results of the review. The report shall include such recommendations for additional investigations or research as the Inspector General considers appropriate.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Form</inline>.—</heading><content>The report shall be submitted in unclassified form, but may include a classified annex.</content></paragraph></subsection></section> <section><num value="311">SEC. 311. </num><heading>AMENDMENTS TO FAIR CREDIT REPORTING ACT.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Exception to Consumer Disclosure Requirement</inline>.—</heading><content>Section 604(b) of the Fair Credit Reporting Act (15 U.S.C. 1681b(b)) (as amended by chapter 1 of subtitle D of the Economic Growth and Regulatory Paperwork Reduction Act of 1996) is amended by adding at the end the following new paragraph: <quotedContent><paragraph class="indent1 fontsize10"><num value="4">“(4) </num><heading><inline class="smallCaps">Exception for national security investigations</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of an agency or department of the United States Government which seeks to obtain and use a consumer report for employment purposes, paragraph (3) shall not apply to any adverse action by such agency or department which is based in part on such consumer report, if the head of such agency or department makes a written finding that—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>the consumer report is relevant to a national security investigation of such agency or department;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>the investigation is within the jurisdiction of such agency or department;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><chapeau>there is reason to believe that compliance with paragraph (3) will—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I) </num><content>endanger the life or physical safety of any person;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II) </num><content>result in flight from prosecution;</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III) </num><content>result in the destruction of, or tampering with, evidence relevant to the investigation;</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV) </num><content>result in the intimidation of a potential witness relevant to the investigation;</content></subclause> <subclause class="indent4 fontsize10"><num value="V">“(V) </num><content>result in the compromise of classified information; or</content></subclause> <subclause class="indent4 fontsize10"><num value="VI">“(VI) </num><content>otherwise seriously jeopardize or unduly delay the investigation or another official proceeding.</content></subclause></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><heading><inline class="smallCaps">Notification of consumer upon conclusion of investigation</inline>.—</heading><chapeau>Upon the conclusion of a national security investigation described in subparagraph (A), or upon the determination that the exception under subparagraph (A) is no longer required for the reasons set forth in such subparagraph, the official exercising the authority in such subparagraph shall provide to the consumer who is the subject of the consumer report with regard to which such finding was made—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>a copy of such consumer report with any classified information redacted as necessary;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>notice of any adverse action which is based, in part, on the consumer report; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><content>the identification with reasonable specificity of the nature of the investigation for which the consumer report was sought.</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><heading><inline class="smallCaps">Delegation by head of agency or department</inline>.—</heading><content>For purposes of subparagraphs (A) and (B), the head of any agency or department of the United States <page identifier="/us/stat/111/2256">111 STAT. 2256</page>Government may delegate his or her authorities under this paragraph to an official of such agency or department who has personnel security responsibilities and is a member of the Senior Executive Service or equivalent civilian or military rank.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><heading><inline class="smallCaps">Report to the congress</inline>.—</heading><content>Not later than January 31 of each year, the head of each agency and department of the United States Government that exercised authority under this paragraph during the preceding year shall submit a report to the Congress on the number of times the department or agency exercised such authority during the year.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this paragraph, the following definitions shall apply:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><heading><inline class="smallCaps">Classified information</inline>.—</heading><content>The term ‘classified information' means information that is protected from unauthorized disclosure under Executive Order No. 12958 or successor orders.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><heading><inline class="smallCaps">National security investigation.</inline>—</heading><content>The term ‘national security investigation’ means any official inquiry by an agency or department of the United States Government to determine the eligibility of a consumer to receive access or continued access to classified information or to determine whether classified information has been lost or compromised.”.</content></clause></subparagraph></paragraph></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Resale of Consumer Report to a Federal Agency or Department</inline>.—</heading><content>Section 607(e) of the Fair Credit Reporting Act (12 U.S.C. 1681e(e)) (as amended by chapter 1 of subtitle D of the Economic Growth and Regulatory Paperwork Reduction Act of 1996) is amended by adding at the end the following new paragraph: <quotedContent><paragraph class="indent1 fontsize10"><num value="3">“(3) </num><heading><inline class="smallCaps">Resale of consumer report to a federal agency or department</inline>.—</heading><chapeau>Notwithstanding paragraph (1) or (2), a person who procures a consumer report for purposes of reselling the report (or any information in the report) shall not disclose the identity of the end-user of the report under paragraph (1) or (2) if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>the end user is an agency or department of the United States Government which procures the report from the person for purposes of determining the eligibility of the consumer concerned to receive access or continued access to classified information (as defined in section 604(b)(4)(E)(i)); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>the agency or department certifies in writing to the person reselling the report that nondisclosure is necessary to protect classified information or the safety of persons employed by or contracting with, or undergoing investigation for work or contracting with the agency or department.”.</content></subparagraph></paragraph></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s1681b">15 USC 1681b</ref> note.</p></sidenote><heading><inline class="smallCaps">Effective Date.</inline>—</heading><content>The amendments made by subsections (a) and (b) shall take effect as if such amendments had been included in chapter 1 of subtitle D of the Economic Growth and Regulatory Paperwork Reduction Act of 1996 as of the date of the enactment of such Act.</content></subsection></section> 111 STAT. 2257 <num value="I">TITLE IV—</num><heading>CENTRAL INTELLIGENCE AGENCY</heading> <section><num value="401">SEC. 401. </num><heading>MULTIYEAR LEASING AUTHORITY.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 5 of the Central Intelligence Agency Act of 1949 (50 U.S.C. 403f) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by redesignating paragraphs (a) through (f) as paragraphs (1) through (6), respectively;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting “<quotedText>(a)</quotedText>” after “<inline class="smallCaps">Sec</inline>. 5.”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>in paragraph (5), as so redesignated, by striking out “without regard” and all that follows through “; and” and inserting in lieu thereof a semicolon;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>by striking out the period at the end of paragraph (6), as so redesignated, and inserting in lieu thereof “; and”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>by inserting after paragraph (6) the following new paragraph: <quotedContent><paragraph class="indent1 fontsize10"><num value="7">“(7) </num><content>Notwithstanding section 1341(a)(1) of title 31, United States Code, enter into multiyear leases for up to 15 years.”; and</content></paragraph></quotedContent></content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>by inserting at the end the following new subsection: <quotedContent><subsection class="indent0 fontsize10"><num value="b">“(b)</num><paragraph class="inline"><num value="1">(1) </num><chapeau>The authority to enter into a multiyear lease under subsection (a)(7) shall be subject to appropriations provided in advance for—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>the entire lease; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>the first 12 months of the lease and the Government’s estimated termination liability.</content></subparagraph></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><chapeau>In the case of any such lease entered into under subparagraph (B) of paragraph (1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>such lease shall include a clause that provides that the contract shall be terminated if budget authority (as defined by section 3(2) of the Congressional Budget and Impoundment Control Act of 1974 (2 U.S.C. 622(2))) is not provided specifically for that project in an appropriations Act in advance of an obligation of funds in respect thereto;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>notwithstanding section 1552 of title 31, United States Code, amounts obligated for paying termination costs with respect to such lease shall remain available until the costs associated with termination of such lease are paid;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>funds available for termination liability shall remain available to satisfy rental obligations with respect to such lease in subsequent fiscal years in the event such lease is not terminated early, but only to the extent those funds are in excess of the amount of termination liability at the time of their use to satisfy such rental obligations; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>funds appropriated for a fiscal year may be used to make payments on such lease, for a maximum of 12 months, beginning any time during such fiscal year.”.</content></subparagraph></paragraph></subsection></quotedContent></content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by subsection <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t50/s403f">50 USC 403f</ref> note.</p></sidenote>(a) apply to multiyear leases entered into under section 5 of the Central Intelligence Agency Act of 1949, as so amended, on or after October 1, 1997.</content></subsection></section> <section><num value="402">SEC. 402. </num><heading>SUBPOENA AUTHORITY FOR THE INSPECTOR GENERAL OF THE CENTRAL INTELLIGENCE AGENCY.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Authority</inline>.—</heading><chapeau>Subsection (e) of section 17 of the Central Intelligence Agency Act of 1949 (50 U.S.C. 403q) is amended—</chapeau> <page identifier="/us/stat/111/2258">111 STAT. 2258</page> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by redesignating paragraphs (5) through (7) as paragraphs (6) through (8), respectively; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting after paragraph (4) the following new paragraph (5): <quotedContent><paragraph class="indent1 fontsize10"><num value="5">“(5)</num><subparagraph class="inline"><num value="A">(A) </num><content>Except as provided in subparagraph (B), the Inspector General is authorized to require by subpoena the production of all information, documents, reports, answers, records, accounts, papers, and other data and documentary evidence necessary in the performance of the duties and responsibilities of the Inspector General.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><content>In the case of Government agencies, the Inspector General shall obtain information, documents, reports, answers, records, accounts, papers, and other data and evidence for the purpose specified in subparagraph (A) using procedures other than by subpoenas.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">“(C) </num><content>The Inspector General may not issue a subpoena for or on behalf of any other element or component of the Agency.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="D">“(D) </num><content>In the case of contumacy or refusal to obey a subpoena issued under this paragraph, the subpoena shall be enforceable by order of any appropriate district court of the United States.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="E">“(E) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote><content>Not later than January 31 and July 31 of each year, the Inspector General shall submit to the Select Committee on Intelligence of the Senate and the Permanent Select Committee on Intelligence of the House of Representatives a report of the Inspector General’s exercise of authority under this paragraph during the preceding six months.”.</content></subparagraph></paragraph></quotedContent></content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Limitation on Authority for Protection of National Security.</inline>—</heading><content>Subsection (b)(3) of that section is amended by inserting “<quotedText>, or from issuing any subpoena, after the Inspector General has decided to initiate, carry out, or complete such audit, inspection, or investigation or to issue such subpoena,</quotedText>” after “or investigation”.</content></subsection></section> <section><num value="403">SEC. 403. </num><heading>CIA CENTRAL SERVICES PROGRAM.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Authority for Program</inline>.—</heading><content>The Central Intelligence Agency Act of 1949 (50 U.S.C. 403a et seq.) is amended by adding at the end the following new section: <quotedContent><section><heading>“CENTRAL SERVICES PROGRAM</heading> <num value="21">“SEC. 21. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t50/s403u">50 USC 403u</ref>.</p></sidenote><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>The Director may carry out a program under which elements of the Agency provide items and services on a reimbursable basis to other elements of the Agency and to other Government agencies. The Director shall carry out the program in accordance with the provisions of this section.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><heading><inline class="smallCaps">Participation of Agency Elements</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>In order to carry out the program, the Director shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>designate the elements of the Agency that are to provide items or services under the program (in this section referred to as ‘central service providers’);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>specify the items or services to be provided under the program by such providers; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>assign to such providers for purposes of the program such inventories, equipment, and other assets (including equipment on order) as the Director determines necessary to permit such providers to provide items or services under the program.</content></subparagraph></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The designation of elements and the specification of items and services under paragraph (1) shall be subject to the approval of the Director of the Office of Management and Budget.</content></paragraph></subsection> <page identifier="/us/stat/111/2259">111 STAT. 2259</page> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><heading><inline class="smallCaps">Central Services Working Capital Fund</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>There is established a fund to be known as the Central Services Working Capital Fund (in this section referred to as the ‘Fund’). The purpose of the Fund is to provide sums for activities under the program.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><chapeau>There shall be deposited in the Fund the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>Amounts appropriated to the Fund.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>Amounts credited to the Fund from payments received by central service providers under subsection (e).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>Fees imposed and collected under subsection (f)(1).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>Amounts collected in payment for loss or damage to equipment or other property of a central service provider as a result of activities under the program.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E) </num><content>Such other amounts as the Director is authorized to deposit in or transfer to the Fund.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><chapeau>Amounts in the Fund shall be available, without fiscal year limitation, for the following purposes:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>To pay the costs of providing items or services under the program.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>To pay the costs of carrying out activities under subsection (f)(2).</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><heading><inline class="smallCaps">Limitation on Amount of Orders.</inline>—</heading><content>The total value of all orders for items or services to be provided under the program in any fiscal year may not exceed an amount specified in advance by the Director of the Office of Management and Budget.</content></subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><heading><inline class="smallCaps">Payment for Items and Services</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>A Government agency provided items or services under the program shall pay the central service provider concerned for such items or services an amount equal to the costs incurred by the provider in providing such items or services plus any fee imposed under subsection (f). In calculating such costs, the Director shall take into account personnel costs (including costs associated with salaries, annual leave, and workers’ compensation), plant and equipment costs (including depreciation of plant and equipment), operation and maintenance expenses, amortized costs, and other expenses.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>Payment for items or services under paragraph (1) may take the form of an advanced payment by an agency from appropriations available to such agency for the procurement of such items or services.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><heading><inline class="smallCaps">Fees</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Director may permit a central service provider to impose and collect a fee with respect to the provision of an item or service under the program. The amount of the fee may not exceed an amount equal to four percent of the payment received by the provider for the item or service.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2)</num><subparagraph class="inline"><num value="A">(A) </num><content>Subject to subparagraph (B), the Director may obligate and expend amounts in the Fund that are attributable to the fees imposed and collected under paragraph (1) to acquire equipment or systems for, or to improve the equipment or systems of, elements of the Agency that are not designated for participation in the program in order to facilitate the designation of such elements for future participation in the program.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><chapeau>The Director may not expend amounts in the Fund for purposes specified in subparagraph (A) in fiscal year 1998, 1999, or 2000 unless the Director—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>secures the prior approval of the Director of the Office of Management and Budget; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>submits notice of the proposed expenditure to the Permanent Select Committee on Intelligence of the House of <page identifier="/us/stat/111/2260">111 STAT. 2260</page>Representatives and the Select Committee on Intelligence of the Senate.</content></clause></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="g">“(g) </num><heading><inline class="smallCaps">Audit</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Not later than December 31 each year, the Inspector General of the Central Intelligence Agency shall conduct an audit of the activities under the program during the preceding fiscal year.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The Director of the Office of Management and Budget shall determine the form and content of annual audits under paragraph (1). Such audits shall include an itemized accounting of the items or services provided, the costs associated with the items or services provided, the payments and any fees received for the items or services provided, and the agencies provided items or services.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><chapeau>Not later than 30 days after the completion of an audit under paragraph (1), the Inspector General shall submit a copy of the audit to the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>The Director of the Office of Management and Budget.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>The Director of Central Intelligence.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>The Permanent Select Committee on Intelligence of the House of Representatives.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>The Select Committee on Intelligence of the Senate.</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="h">“(h) </num><heading><inline class="smallCaps">Termination</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The authority of the Director to carry out the program under this section shall terminate on March 31, 2000.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><chapeau>Subject to paragraph (3), the Director of Central Intelligence and the Director of the Office of Management and Budget, acting jointly—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>may terminate the program under this section and the Fund at any time; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>upon such termination, shall provide for the disposition of the personnel, assets, liabilities, grants, contracts, property, records, and unexpended balances of appropriations, authorizations, allocations, and other funds held, used, arising from, available to, or to be made available in connection with the program or the Fund.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>The Director of Central Intelligence and the Director of the Office of Management and Budget may not undertake any action under paragraph (2) until 60 days after the date on which the Directors jointly submit notice of such action to the Permanent Select Committee on Intelligence of the House of Representatives and the Select Committee on Intelligence of the Senate.”.</content></paragraph></subsection></section></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Availability of Funds</inline>.—</heading><content>Of the amount appropriated pursuant to the authorization of appropriations in section 101, $2,000,000 shall be available for deposit in the Central Services Working Capital Fund established by section 21(c) of the Central Intelligence Agency Act of 1949, as added by subsection (a).</content></subsection></section> <section><num value="404">SEC. 404. </num><heading>PROTECTION OF CIA FACILITIES.</heading> <chapeau>Subsection (a) of section 15 of the Central Intelligence Agency Act of 1949 (50 U.S.C. 403o) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>(1)</quotedText>” after “(a)”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>by striking out “powers only within Agency installations,” and all that follows through the end and inserting in lieu thereof the following: “powers—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>within the Agency Headquarters Compound and the property controlled and occupied by the Federal Highway <page identifier="/us/stat/111/2261">111 STAT. 2261</page>Administration located immediately adjacent to such Compound;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>in the streets, sidewalks, and the open areas within the zone beginning at the outside boundary of such Compound and property and extending outward 500 feet;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>within any other Agency installation and protected property; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>in the streets, sidewalks, and open areas within the zone beginning at the outside boundary of any installation or property referred to in subparagraph (C) and extending outward 500 feet.”; and</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by adding at the end the following new paragraphs: <quotedContent><paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The performance of functions and exercise of powers under subparagraph (B) or (D) of paragraph (1) shall be limited to those circumstances where such personnel can identify specific and articulable facts giving such personnel reason to believe that the performance of such functions and exercise of such powers is reasonable to protect against physical damage or injury, or threats of physical damage or injury, to Agency installations, property, or employees.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>Nothing in this subsection shall be construed to preclude, or limit in any way, the authority of any Federal, State, or local law enforcement agency, or any other Federal police or Federal protective service.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>The rules and regulations enforced by such personnel shall be the rules and regulations prescribed by the Director and shall only be applicable to the areas referred to in subparagraph (A) or (C) of paragraph (1).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><content>Not later than December 1, 1998, and annually thereafter, <sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote>the Director shall submit a report to the Permanent Select Committee on Intelligence of the House of Representatives and the Select Committee on Intelligence of the Senate that describes in detail the exercise of the authority granted by this subsection, and the underlying facts supporting the exercise of such authority, during the preceding fiscal year. The Director shall make such report available to the Inspector General of the Central Intelligence Agency.”.</content></paragraph></quotedContent></content></paragraph></section> <section><num value="405">SEC. 405. </num><heading>ADMINISTRATIVE LOCATION OF THE OFFICE OF THE DIRECTOR OF CENTRAL INTELLIGENCE.</heading> <content>Section 102(e) of the National Security Act of 1947 (50 U.S.C. 403(e)) is amended by adding at the end the following: <quotedContent><paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>The Office of the Director of Central Intelligence shall, for administrative purposes, be within the Central Intelligence Agency.”.</content></paragraph></quotedContent></content></section> <num value="V">TITLE V—</num><heading>DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES</heading> <section><num value="501">SEC. 501. </num><heading>AUTHORITY TO AWARD ACADEMIC DEGREE OF BACHELOR OF SCIENCE IN INTELLIGENCE.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Authority for New Bachelor’s Degree.—</inline></heading><content>Section 2161 of title 10, United States Code, is amended to read as follows: <page identifier="/us/stat/111/2262">111 STAT. 2262</page> <quotedContent><section><num value="2161">“§2161. </num><heading>Joint Military Intelligence College: academic degrees</heading> <sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote> <chapeau>“Under regulations prescribed by the Secretary of Defense, the president of the Joint Military Intelligence College may, upon recommendation by the faculty of the college, confer upon a graduate of the college who has fulfilled the requirements for the degree the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>The degree of Master of Science of Strategic Intelligence (MSSI).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The degree of Bachelor of Science in Intelligence (BSI).”.</content></paragraph></section></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Clerical Amendment.</inline>—</heading><content>The item relating to that section in the table of sections at the beginning of chapter 108 of such title is amended to read as follows: <quotedContent><toc><referenceItem role="section"><designator>“2161. </designator><label>Joint Military Intelligence College: academic degrees.”.</label></referenceItem></toc></quotedContent></content></subsection></section> <section><num value="502">SEC. 502. </num><heading>FUNDING FOR INFRASTRUCTURE AND QUALITY OF LIFE IMPROVEMENTS AT MENWITH HILL AND BAD AIBLING STATIONS.</heading> <content>Section 506(b) of the Intelligence Authorization Act for Fiscal Year 1996 (Public Law 104–93; 109 Stat. 974) is amended by striking out “for fiscal years 1996 and 1997” and inserting in lieu thereof “for fiscal years 1998 and 1999”.</content></section> <section><num value="503">SEC. 503. </num><heading>UNAUTHORIZED USE OF NAME, INITIALS, OR SEAL OF NATIONAL RECONNAISSANCE OFFICE.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Extension, Reorganization, and Consolidation of Authorities</inline>.—</heading><content>Subchapter I of chapter 21 of title 10, United States Code, is amended by adding at the end the following new section: <quotedContent><section><num value="425">“§425. </num><heading>Prohibition of unauthorized use of name, initials, or seal: specified intelligence agencies</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><heading><inline class="smallCaps">Prohibition</inline>.—</heading><chapeau>Except with the written permission of both the Secretary of Defense and the Director of Central Intelligence, no person may knowingly use, in connection with any merchandise, retail product, impersonation, solicitation, or commercial activity in a manner reasonably calculated to convey the impression that such use is approved, endorsed, or authorized by the Secretary and the Director, any of the following (or any colorable imitation thereof):</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>The words ‘Defense Intelligence Agency’, the initials ‘DIA’, or the seal of the Defense Intelligence Agency.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The words ‘National Reconnaissance Office’, the initials ‘NRO’, or the seal of the National Reconnaissance Office.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>The words ‘National Imagery and Mapping Agency’, the initials ‘NIMA’, or the seal of the National Imagery and Mapping Agency.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>The words ‘Defense Mapping Agency’, the initials ‘DMA’, or the seal of the Defense Mapping Agency.”.</content></paragraph></subsection></section></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Transfer of Enforcement Authority.—</inline></heading><content>Subsection (b) of section 202 of title 10, United States Code, is transferred to the end of section 425 of such title, as added by subsection (a), and is amended by inserting “<quotedText><inline class="smallCaps">Authority To Enjoin Violations</inline>.—</quotedText>” after “(b)”.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Repeal of Reorganized Provisions</inline>.—</heading><content>Sections 202 and 445 of title 10, United States Code, are repealed.</content></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Clerical Amendments.</inline>—</heading> <page identifier="/us/stat/111/2263">111 STAT. 2263</page> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The table of sections at the beginning of subchapter II of chapter 8 of title 10, United States Code, is amended by striking out the item relating to section 202.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of subchapter I of chapter 21 of title 10, United States Code, is amended by striking out the items relating to sections 424 and 425 and inserting in lieu thereof the following: <quotedContent><toc><referenceItem role="section"><designator>“424. </designator><label>Disclosure of organizational and personnel information: exemption for Defense Intelligence Agency, National Reconnaissance Office, and National Imagery and Mapping Agency.</label></referenceItem> <referenceItem role="section"><designator>“425. </designator><label>Prohibition of unauthorized use of name, initials, or seal: specified intelligence agencies.”.</label></referenceItem></toc></quotedContent></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The table of sections at the beginning of subchapter I of chapter 22 of title 10, United States Code, is amended by striking out the item relating to section 445.</content></paragraph></subsection></section> Approved November 20, 1997.
LEGISLATIVE HISTORY—S. 858 (H.R. 1775): HOUSE REPORTS: Nos. 105–135, Pt. 1 accompanying H.R. 1775 (Select Comm. on Intelligence) and 105–350 (Comm. of Conference). SENATE REPORTS: No. 105–24 (Select Comm. on Intelligence). CONGRESSIONAL RECORD, Vol. 143 (1997):

June 19, considered and passed Senate.

July 17, considered and passed House, amended, in lieu of H.R. 1775.

Nov. 6, Senate agreed to conference report.

Nov. 7, House agreed to conference report.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):

Nov. 20, Presidential statement.

 Public Law 105–108: To authorize appropriations for fiscal years 1998 and 1999 for the United States Fire Administration, and for other purposes. Public Law108 Public Law 105–108 111 Stat. 2264 1997-11-20 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2264 Public Law105–108 105th Congress
An Act To authorize appropriations for fiscal years 1998 and 1999 for the United States Fire Administration, and for other purposes.

Nov. 20, 1997

[S. 123]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

United States Fire Administration Authorization Act for Fiscal Years 1998 and 1999.

15 USC 2201 note.
SECTION 1. SHORT TITLE. This Act may be cited as the “United States Fire Administration Authorization Act for Fiscal Years 1998 and 1999”.
SEC. 2. AUTHORIZATION OF APPROPRIATIONS. Section 17(g)(1) of the Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 2216(g)(1)) is amended— (1) by striking “and” at the end of subparagraph (E); (2) by striking the period at the end of subparagraph (F) and inserting a semicolon; and (3) by adding at the end the following: “(G) $29,664,000 for the fiscal year ending September 30, 1998; and “(H) $30,554,000 for the fiscal year ending September 30, 1999”.
SEC. 3. SUCCESSOR FIRE SAFETY STANDARDS. The Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 2201 et seq.) is amended— (1)

15 USC 2225.

in section 29(a)(1), by inserting “or any successor standard to that standard” after “Association Standard 74”; (2) in section 29(a)(2), by inserting “, or any successor standard to that standard” before “, whichever is appropriate,”; (3) in section 29(b)(2), by inserting “, or any successor standard to that standard” after “Association Standard 13 or 13-R”; (4)

15 USC 2227.

in section 31(c)(2)(B)(i), by inserting “or any successor standard to that standard” after “Life Safety Code)”; and (5) in section 31(c)(2)(B)(ii), by inserting “or any successor standard to that standard” after “Association Standard 101”.
SEC. 4.

15 USC 2204 note.

TERMINATION OR PRIVATIZATION OF FUNCTIONS. (a) In General.—Not later than 60 days before the termination or transfer to a private sector person or entity of any significant function of the United States Fire Administration, as described in subsection (b), the Administrator of the United States Fire Administration shall transmit to Congress a report providing notice of that termination or transfer. (b) Covered Terminations and Transfers.—For purposes of subsection (a), a termination or transfer to a person or entity 111 STAT. 2265described in that subsection shall be considered to be a termination or transfer of a significant function of the United States Fire Administration if the termination or transfer— (1) relates to a function of the Administration that requires the expenditure of more than 5 percent of the total amount of funds made available by appropriations to the Administration; or (2) involves the termination of more than 5 percent of the employees of the Administration.
SEC. 5. NOTICE.

15 USC 2204 note.

 (a) Major Reorganization Defined.—With respect to the United States Fire Administration, the term “major reorganization” means any reorganization of the Administration that involves the reassignment of more than 25 percent of the employees of the Administration. (b) Notice of Reprogramming.—If any funds appropriated pursuant to the amendments made by this Act are subject to a reprogramming action that requires notice to be provided to the Committees on Appropriations of the Senate and the House of Representatives, notice of that action shall concurrently be provided to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Science of the House of Representatives. (c) Notice of Reorganization.—Not later than 15 days before any major reorganization of any program, project, or activity of the United States Fire Administration, the Administrator of the United States Fire Administration shall provide notice to the Committees on Science and Appropriations of the House of Representatives and the Committees on Commerce, Science, and Transportation and Appropriations of the Senate.
SEC. 6. SENSE OF CONGRESS ON THE YEAR 2000 PROBLEM. With the year 2000 rapidly approaching, it is the sense of Congress that the Administrator of the United States Fire Administration should— (1) give high priority to correcting all 2-digit date-related problems in the computer systems of the United States Fire Administration to ensure that those systems continue to operate effectively in the year 2000 and in subsequent years; (2) as soon as practicable after the date of enactment of this Act, assess the extent of the risk to the operations of the United States Fire Administration posed by the problems referred to in paragraph (1), and plan and budget for achieving compliance for all of the mission-critical systems of the system by the year 2000; and (3) develop contingency plans for those systems that the United States Fire Administration is unable to correct by the year 2000.
SEC. 7.

15 USC 2218 note.

ENHANCEMENT OF SCIENCE AND MATHEMATICS PROGRAMS. (a) Definitions.—In this section: (1) Administrator.—The term “Administrator” means the Administrator of the United States Fire Administration. (2) Educationally useful federal equipment.—The term “educationally useful Federal equipment” means computers and related peripheral tools and research equipment that is appropriate for use in schools. 111 STAT. 2266 (3) School.—The term “school” means a public or private educational institution that serves any of the grades of kindergarten through grade 12. (b) Sense of Congress.— (1) In general.—It is the sense of Congress that the Administrator should, to the greatest extent practicable and in a manner consistent with applicable Federal law (including Executive Order No. 12999), donate educationally useful Federal equipment to schools in order to enhance the science and mathematics programs of those schools. (2) Reports.— (A) In general.—Not later than 1 year after the date of enactment of this Act, and annually thereafter, the Administrator shall prepare and submit to the President a report that meets the requirements of this paragraph. The President shall submit that report to Congress at the same time as the President submits a budget request to Congress under section 1105(a) of title 31, United States Code. (B) Contents of report.—The report prepared by the Administrator under this paragraph shall describe any donations of educationally useful Federal equipment to schools made during the period covered by the report.
SEC. 8. REPORT TO CONGRESS. (a) In General.—Not later than 180 days after the date of enactment of this Act, the Administrator of the United States Fire Administration (referred to in this section as the “Administrator”) shall prepare and submit to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Science of the House of Representatives a report that meets the requirements of this section. (b) Contents of Report.—The report under this section shall— (1) examine the risks to firefighters in suppressing fires caused by burning tires; (2) address any risks that are uniquely attributable to fires described in paragraph (1), including any risks relating to— (A) exposure to toxic substances (as that term is defined by the Administrator); (B) personal protection; (C) the duration of those fires; and (D) site hazards associated with those fires; 111 STAT. 2267 (3) identify any special training that may be necessary for firefighters to suppress those fires; and (4) assess how the training referred to in paragraph (3) may be provided by the United States Fire Administration.
Approved November 20, 1997.
LEGISLATIVE HISTORY—S. 1231 (H.R. 1272): HOUSE REPORTS: No. 105–62 accompanying H.R. 1272 (Comm. on Science). SENATE REPORTS: No. 105–124 (Comm. on Commerce, Science, and Transportation). CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 4, considered and passed Senate.

Nov. 9, considered and passed House.

 Public Law 105–109: To permit the city of Cleveland, Ohio, to convey certain lands that the United States conveyed to the city. Public Law109 Public Law 105–109 111 Stat. 2268 1997-11-20 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2268 Public Law105–109 105th Congress
An Act To permit the city of Cleveland, Ohio, to convey certain lands that the United States conveyed to the city.

Nov. 20, 1997

[S. 1347]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. DEFINITIONS. For purposes of this Act, the term “fair market value” shall have the meaning provided that term by the Secretary of Transportation, by regulation.
SEC. 2. AUTHORITY TO GRANT WAIVERS. (a) In General.—Notwithstanding any other provision of law and subject to section 47153 of title 49, United States Code, and section 3, the Secretary of Transportation may waive any of the terms contained in the deed of conveyance described in subsection (b). (b) Deed of Conveyance.—The deed of conveyance described in this subsection is the deed of conveyance issued by the United States and dated January 10, 1967, for the conveyance of lands to the city of Cleveland, Ohio, for use by the city for airport purposes.
SEC. 3. CONDITIONS. (a) Fair Market Value or Equivalent Benefit.—As a condition to receiving a waiver under this Act, the city of Cleveland, Ohio, may convey an interest in the lands described in section 2(b) only if the city receives, in exchange for the interest— (1) an amount equal to the fair market value of the interest; or (2) an equivalent benefit. (b) Use of Amounts or Equivalent Benefits.—Any amount or equivalent benefit that is received by the city of Cleveland shall be used by the city for— 111 STAT. 2269 (1) the development, improvement, operation, or maintenance of a public airport; or (2) lands (including any improvements to those lands) that produce revenues that are used for airport development purposes.
Approved November 20, 1997.
LEGISLATIVE HISTORY—S. 1347: CONGRESSIONAL RECORD, Vol. 143 (1997).

Nov. 8, considered and passed Senate.

Nov. 9, considered and passed House.

 Public Law 105–110: To amend the Act incorporating the American Legion to make a technical correction. Public Law110 Public Law 105–110 111 Stat. 2270 1997-11-20 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2270 Public Law105–110 105th Congress
An Act To amend the Act incorporating the American Legion to make a technical correction.

Nov. 20, 1997

[S. 1377]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
That section 5 of the Act entitled “An Act to Incorporate the American Legion”, approved September 16, 1919 (41 Stat. 285; 36 U.S.C. 45) is amended by striking “December 22, 1961” and inserting “February 28, 1961”.
Approved November 20, 1997.
LEGISLATIVE HISTORY—S. 1377: CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 5, considered and passed Senate.

Nov. 8, considered and passed House.

 Public Law 105–111: To amend title 38, United States Code, to allow revision of veterans benefits decisions based on clear and unmistakable error. Public Law111 Public Law 105–111 111 Stat. 2271 1997-11-21 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2271 Public Law105–111 105th Congress
An Act To amend title 38, United States Code, to allow revision of veterans benefits decisions based on clear and unmistakable error.

Nov. 21, 1997

[H.R. 1090]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. REVISION OF DECISIONS BASED ON CLEAR AND UNMISTAKABLE ERROR. (a) Original Decisions.—(1) Chapter 51 of title 38, United States Code, is amended by inserting after section 5109 the following new section:
“§ 5109A. Revision of decisions on grounds of clear and unmistakable error “(a) A decision by the Secretary under this chapter is subject to revision on the grounds of clear and unmistakable error. If evidence establishes the error, the prior decision shall be reversed or revised. “(b) For the purposes of authorizing benefits, a rating or other adjudicative decision that constitutes a reversal or revision of a prior decision on the grounds of clear and unmistakable error has the same effect as if the decision had been made on the date of the prior decision. “(c) Review to determine whether clear and unmistakable error exists in a case may be instituted by the Secretary on the Secretary’s own motion or upon request of the claimant. “(d) A request for revision of a decision of the Secretary based on clear and unmistakable error may be made at any time after that decision is made. “(e) Such a request shall be submitted to the Secretary and shall be decided in the same manner as any other claim.”.
 (2) The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 5109 the following new item: “5109A. (b) BVA Decisions.—(1) Chapter 71 of such title is amended by adding at the end the following new section:
“§ 7111. Revision of decisions on grounds of clear and unmistakable error “(a) A decision by the Board is subject to revision on the grounds of clear and unmistakable error. If evidence establishes the error, the prior decision shall be reversed or revised. 111 STAT. 2272 “(b) For the purposes of authorizing benefits, a rating or other adjudicative decision of the Board that constitutes a reversal or revision of a prior decision of the Board on the grounds of clear and unmistakable error has the same effect as if the decision had been made on the date of the prior decision. “(c) Review to determine whether clear and unmistakable error exists in a case may be instituted by the Board on the Board’s own motion or upon request of the claimant. “(d) A request for revision of a decision of the Board based on clear and unmistakable error may be made at any time after that decision is made. “(e) Such a request shall be submitted directly to the Board and shall be decided by the Board on the merits, without referral to any adjudicative or hearing official acting on behalf of the Secretary. “(f) A claim filed with the Secretary that requests reversal or revision of a previous Board decision due to clear and unmistakable error shall be considered to be a request to the Board under this section, and the Secretary shall promptly transmit any such request to the Board for its consideration under this section.”.
 (2) The table of sections at the beginning of such chapter is amended by adding at the end the following new item: “7111. (c)

38 USC 5109A note.

Effective Date.—(1) Sections 5109A and 7111 of title 38, United States Code, as added by this section, apply to any determination made before, on, or after the date of the enactment of this Act. (2)

Applicability.

38 USC 7251 note.

Notwithstanding section 402 of the Veterans Judicial Review Act (38 U.S.C. 7251 note), chapter 72 of title 38, United States Code, shall apply with respect to any decision of the Board of Veterans’ Appeals on a claim alleging that a previous determination of the Board was the product of clear and unmistakable error if that claim is filed after, or was pending before the Department of Veterans Affairs, the Court of Veterans Appeals, the Court of Appeals for the Federal Circuit, or the Supreme Court on the date of the enactment of this Act.
Approved November 21, 1997.
LEGISLATIVE HISTORY—H.R. 1090: HOUSE REPORTS: No. 105–52 (Comm. on Veterans’ Affairs). CONGRESSIONAL RECORD, Vol. 143 (1997):

Apr. 16, considered and passed House.

Nov. 10, considered and passed Senate.

 Public Law 105–112: To provide a law enforcement exception to the prohibition on the advertising of certain electronic devices. Public Law112 Public Law 105–112 111 Stat. 2273 1997-11-21 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2273 Public Law105–112 105th Congress
An Act To provide a law enforcement exception to the prohibition on the advertising of certain electronic devices.

Nov. 21, 1997

[H.R. 1840]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Law Enforcement Technology Advertisement Clarification Act of 1997.

18 USC 2510 note.
SECTION 1. SHORT TITLE. This Act may be cited as the “Law Enforcement Technology Advertisement Clarification Act of 1997”.
SEC. 2. EXCEPTION TO PROHIBITION ON ADVERTISING CERTAIN DEVICES. Section 2512 of title 18, United States Code, is amended by adding at the end the following: “(3) It shall not be unlawful under this section to advertise for sale a device described in subsection (1) of this section if the advertisement is mailed, sent, or carried in interstate or foreign commerce solely to a domestic provider of wire or electronic communication service or to an agency of the United States, a State, or a political subdivision thereof which is duly authorized to use such device.”.
Approved November 21, 1997.
LEGISLATIVE HISTORY—H.R. 1840: HOUSE REPORTS: No. 105–1162 (Comm. on the Judiciary). CONGRESSIONAL RECORD, Vol. 143 (1997):

July 8, considered and passed House.

Nov. 10, considered and passed Senate.

 Public Law 105–113: To transfer to the Secretary of Agriculture the authority to conduct the census agriculture, and for other purposes. Public Law113 Public Law 105–113 111 Stat. 2274 1997-11-21 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2274 Public Law105–113 105th Congress
An Act To transfer to the Secretary of Agriculture the authority to conduct the census agriculture, and for other purposes.

Nov. 21, 1997

[H.R. 2366]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Census of Agriculture Act of 1997.

7 USC 2201 note.
SECTION 1. SHORT TITLE. This Act may be cited as the “Census of Agriculture Act of 1997”.
SEC. 2.

7 USC 2204g.

AUTHORITY OF SECRETARY OF AGRICULTURE TO CONDUCT CENSUS OF AGRICULTURE. (a) Census of Agriculture Required.—In 1998 and every fifth year thereafter, the Secretary of Agriculture shall take a census of agriculture. (b) Methods.—In connection with the census, the Secretary may conduct any survey or other information collection, and employ any sampling or other statistical method, that the Secretary determines is appropriate. (c) Year of Information.—The information collected in each census taken under this section shall relate to the year immediately preceding the year in which the census is taken. (d) Enforcement.— (1) Fraud.—A person over 18 years of age who willfully gives an answer that is false to a question, which is authorized by the Secretary to be submitted to the person in connection with a census under this section, shall be fined not more than $500. (2) Refusal or neglect to answer questions.—A person over 18 years of age who refuses or willfully neglects to answer a question, which is authorized by the Secretary to be submitted to the person in connection with a census under this section, shall be fined not more than $100. (3) Social security number.—The failure or refusal of a person to disclose the person’s Social Security number in response to a request made in connection with any census or other activity under this section shall not be a violation under this subsection. (4) Religious information.—Notwithstanding any other provision of this section, no person shall be compelled to disclose information relative to the religious beliefs of the person or to membership of the person in a religious body. (e) Geographic Coverage.—A census under this section shall include— (1) each of the several States of the United States; 111 STAT. 2275 (2) as determined appropriate by the Secretary, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, the United States Virgin Islands, and Guam; and (3) with the concurrence of the Secretary and the Secretary of State, any other possession or area over which the United States exercises jurisdiction, control, or sovereignty. (f) Cooperation With Secretary of Commerce.— (1) Information provided to secretary of agriculture.—On a written request by the Secretary of Agriculture, the Secretary of Commerce may provide to the Secretary of Agriculture any information collected under title 13, United States Code, that the Secretary of Agriculture considers necessary for the taking of a census or survey under this section. (2) Information provided to secretary of commerce.—On a written request by the Secretary of Commerce, the Secretary of Agriculture may provide to the Secretary of Commerce any information collected in a census taken under this section that the Secretary of Commerce considers necessary for the taking of a census or survey under title 13, United States Code. (3) Confidentiality.—Information obtained under this subsection may not be used for any purpose other than the statistical purposes for which the information is supplied. For purposes of sections 9 and 214 of title 13, United States Code, any information provided under paragraph (2) shall be considered information furnished under the provisions of title 13, United States Code. (g) Regulations.—A regulation necessary to carry out this section may be promulgated by— (1) the Secretary of Agriculture, to the extent that a matter under the jurisdiction of the Secretary is involved; and (2) the Secretary of Commerce, to the extent that a matter under the jurisdiction of the Secretary of Commerce is involved.”.
SEC. 3. REPEAL OF SUPERSEDED PROVISION. (a) Repeal.—Section 142 of title 13, United States Code, is repealed. (b) Clerical Amendments.— (1) Subchapter II of chapter 5 of title 13, United States Code, is amended by striking the subchapter heading and inserting the following: “SUBCHAPTER II—POPULATION, HOUSING, AND UNEMPLOYMENT”. (2) The analysis of chapter 5 of title 13, United States Code, is amended— (A) by striking the item relating to section 142; and (B) by striking the item relating to the heading for subchapter II and inserting the following: “SUBCHAPTER II— (c) Cross Reference.—Section 343(a)(U)(F) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(11)(F)) 111 STAT. 2276is amended by striking “taken under section 142 of title 13, United States Code”. (d)

7 USC 1991 note.

Effective Date.—This section and the amendments made by this section shall take effect October 1, 1998.
SEC. 4. CONFIDENTIALITY OF INFORMATION. (a) Information Provided to Secretary of Agriculture.— (1) Authority to provide information.—Section 9(a) of title 13, United States Code, is amended by inserting after “chapter 10 of this title” the following: “or section 2(f) of the Census of Agriculture Act of 1997”. (2) Confidentiality of information.—Section 1770(d) of the Food Security Act of 1985 (7 U.S.C. 2276(d)) is amended— (A) by striking “or” at the end of paragraph (8); (B) by striking the period at the end of paragraph and inserting or and (C) by adding at the end the following: “(10) section 2 of the Census of Agriculture Act of 1997.”. (b) Information Provided to the Secretary of Commerce.—Section 1770 of the Food Security Act of 1985 (7 U.S.C. 2276) is amended by adding at the end the following: “(e) Information Provided to Secretary of Commerce.—This section shall not prohibit the release of information under section 2(f)(2) of the Census of Agriculture Act of 1997.”.
Approved November 21, 1997.
LEGISLATIVE HISTORY—H.R. 2366 (S. 845): HOUSE REPORTS: No. 105–296, Pt. 1 (Comm. on Agriculture). SENATE REPORTS: No. 105–141 (Comm. on Governmental Affairs). CONGRESSIONAL RECORD, Vol. 143 (1997):

Oct. 21, considered and passed House.

Nov. 10, considered and passed Senate.

 Public Law 105–114: To amend title 38, United States Code, to revise, extend, and improve programs for veterans. Public Law114 Public Law 105–114 111 Stat. 2277 1997-11-21 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2277 Public Law105–114 105th Congress
An Act To amend title 38, United States Code, to revise, extend, and improve programs for veterans.

Nov. 21, 1997

[S. 714]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Veterans’ Benefits Act of 1997.
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.—This Act may be cited as the “Veterans’

38 USC 101 note.

 Benefits Act of 1997”. (b) Table of Contents.—The table of contents of this Act is as follows: Sec. 1. Sec. 2. TITLE I— Sec. 101. Sec. 102. Sec. 103. TITLE II— Sec. 201. Sec. 202. Sec. 203. Sec. 204. Sec. 205. Sec. 206. Sec. 207. Sec. 208. Sec. 209. Sec. 210. TITLE III— Sec. 301. Sec. 302. Sec. 303. TITLE IV— Sec. 401. Sec. 402. Sec. 403. Sec. 404.
SEC. 2. REFERENCES TO TITLE 38, UNITED STATES CODE. Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment 111 STAT. 2278to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of title 38, United States Code.
<num value="I">TITLE I—</num><heading>EQUAL EMPLOYMENT OPPORTUNITY PROCESS IN THE DEPARTMENT OF VETERANS AFFAIRS</heading> <section><num value="101">SEC. 101. </num><heading>EQUAL EMPLOYMENT RESPONSIBILITIES.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Chapter 5 is amended by inserting at the end of subchapter I the following new section: <quotedContent><section><num value="516">“§ 516. </num><heading>Equal employment responsibilities</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><content>The Secretary shall provide that the employment discrimination complaint resolution system within the Department be established and administered so as to encourage timely and fair resolution of concerns and complaints. The Secretary shall take steps to ensure that the system is administered in an objective, fair, and effective manner and in a manner that is perceived by employees and other interested parties as being objective, fair, and effective.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>The Secretary shall provide—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>that employees responsible for counseling functions associated with employment discrimination and for receiving, investigating, and processing complaints of employment discrimination shall be supervised in those functions by, and report to, an Assistant Secretary or a Deputy Assistant Secretary for complaint resolution management; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>that employees performing employment discrimination complaint resolution functions at a facility of the Department shall not be subject to the authority, direction, and control of the Director of the facility with respect to those functions.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>The Secretary shall ensure that all employees of the Department receive adequate education and training for the purposes of this section and section 319 of this title.</content></subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><content>The Secretary shall, when appropriate, impose disciplinary measures, as authorized by law, in the case of employees of the Department who engage in unlawful employment discrimination, including retaliation against an employee asserting rights under an equal employment opportunity law.</content></subsection> <subsection class="indent0 fontsize10"><num value="e">“(e)</num><paragraph class="inline"><num value="1">(1)</num><subparagraph class="inline"><num value="A">(A) </num><content>Not later than 30 days after the end of each calendar quarter, the Assistant Secretary for Human Resources and Administration shall submit to the Committees on Veterans’ Affairs of the Senate and House of Representatives a report summarizing the employment discrimination complaints filed against the individuals referred to in paragraph (2) during such quarter.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><content>Subparagraph (A) shall apply in the case of complaints filed against individuals on the basis of such individuals’ personal conduct and shall not apply in the case of complaints filed solely on the basis of such individuals’ positions as officials of the Department.</content></subparagraph></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><chapeau>Paragraph (1) applies to the following officers and employees of the Department:</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>The Secretary.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>The Deputy Secretary of Veterans Affairs.</content></subparagraph> <page identifier="/us/stat/111/2279">111 STAT. 2279</page> <subparagraph class="indent1 fontsize10"><num value="C">“(C) </num><content>The Under Secretary for Health and the Under Secretary for Benefits.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="D">“(D) </num><content>Each Assistant Secretary of Veterans Affairs and each Deputy Assistant Secretary of Veterans Affairs.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="E">“(E) </num><content>The Director of the National Cemetery System.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="F">“(F) </num><content>The General Counsel of the Department.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="G">“(G) </num><content>The Chairman of the Board of Veterans’ Appeals.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="H">“(H) </num><content>The Chairman of the Board of Contract Appeals of the Department.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="I">“(I) </num><content>The director and the chief of staff of each medical center of the Department.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="J">“(J) </num><content>The director of each Veterans Integrated Services Network.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="K">“(K) </num><content>The director of each regional office of the Department.</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="L">“(L) </num><content>Each program director of the Central Office of the Department.</content></subparagraph></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><chapeau>Each report under this subsection—</chapeau> <subparagraph class="indent1 fontsize10"><num value="A">“(A) </num><content>may not disclose information which identifies the individuals filing, or the individuals who are the subject of, the complaints concerned or the facilities at which the discrimination identified in such complaints is alleged to have occurred;</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="B">“(B) </num><content>shall summarize such complaints by type and by equal employment opportunity field office area in which filed; and</content></subparagraph> <subparagraph class="indent1 fontsize10"><num value="C">“(C) </num><content>shall include copies of such complaints, with the information described in subparagraph (A) redacted.</content></subparagraph></paragraph> <paragraph class="indent0 fontsize10"><num value="4">“(4) </num><content>Not later than April 1 each year, the Assistant Secretary shall submit to the committees referred to in paragraph (1)(A) a report on the complaints covered by paragraph (1) during the preceding year, including the number of such complaints filed during that year and the status and resolution of the investigation of such complaints.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><content>The Secretary shall ensure that an employee of the Department who seeks counseling relating to employment discrimination may elect to receive such counseling from an employee of the Department who carries out equal employment opportunity counseling functions on a full-time basis rather than from an employee of the Department who carries out such functions on a part-time basis.</content></subsection> <subsection class="indent0 fontsize10"><num value="g">“(g) </num><content>The number of employees of the Department whose duties include equal employment opportunity counseling functions as well as other, unrelated functions may not exceed 40 full-time equivalent employees. Any such employee may be assigned equal employment opportunity counseling functions only at Department facilities in remote geographic locations (as determined by the Secretary). The Secretary may waive the limitation in the preceding sentence in specific cases.</content></subsection> <subsection class="indent0 fontsize10"><num value="h">“(h) </num><content>The provisions of this section shall be implemented in a manner consistent with procedures applicable under regulations prescribed by the Equal Employment Opportunity Commission.”.</content></subsection></section></quotedContent></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 515 the following new item: <quotedContent><toc><referenceItem role="section"><designator>“516. </designator><label>Equal employment responsibilities.”.</label></referenceItem></toc></quotedContent></content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Reports.</inline>—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of Veterans Affairs shall submit <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t38/s516">38 USC 516</ref> note.</p></sidenote>to Congress reports on the implementation and operation of the equal employment opportunity system within the Department of Veterans Affairs. The first such report shall be submitted not <page identifier="/us/stat/111/2280">111 STAT. 2280</page>later than April 1, 1998, and subsequent reports shall be submitted not later than January 1, 1999, and January 1, 2000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The first report under paragraph (1) shall set forth the actions taken by the Secretary to implement section 516 of title 38, United States Code, as added by subsection (a), and other actions taken by the Secretary in relation to the equal employment opportunity system within the Department of Veterans Affairs.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><chapeau>The subsequent reports under paragraph (I) shall set forth, for each equal employment opportunity field office of the Department and for the Department as a whole, the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>Any information to supplement the information submitted in the report under paragraph (2) that the Secretary considers appropriate.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>The number of requests for counseling relating to employment discrimination received during the one-year period ending on the date of the report concerned.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>The number of employment discrimination complaints received during such period.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>The status of each complaint described in subparagraph (C), including whether or not the complaint was resolved and, if resolved, whether the employee concerned sought review of the resolution by the Equal Employment Opportunity Commission or by Federal court.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E) </num><chapeau>The number of employment discrimination complaints that were settled during such period, including—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>the type of such complaints; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>the terms of settlement (including any settlement amount) of each such complaint.</content></clause></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t38/s516">38 USC 516</ref> note.</p></sidenote><heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>Section 516 of title 38, United States Code, as added by subsection (a), shall take effect 90 days after the date of enactment of this Act. Subsection (e) of that section shall take effect with respect to the first quarter of calendar year 1998.</content></subsection></section> <section><num value="102">SEC. 102. </num><heading>DISCRIMINATION COMPLAINT ADJUDICATION AUTHORITY.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Chapter 3 is amended by adding at the end the following new section: <quotedContent> <section><num value="319">§319. </num><heading>Office of Employment Discrimination Complaint Adjudication</heading> <subsection class="indent0 fontsize10"><num value="a">“(a)</num><paragraph class="inline"><num value="1">(1) </num><content>There is in the Department an Office of Employment Discrimination Complaint Adjudication. There is at the head of the Office a Director.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The Director shall be a career appointee in the Senior Executive Service.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>The Director reports directly to the Secretary or the Deputy Secretary concerning matters within the responsibility of the Office.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b)</num><paragraph class="inline"><num value="1">(1) </num><content>The Director is responsible for making the final agency decision within the Department on the merits of any employment discrimination complaint filed by an employee, or an applicant for employment, with the Department. The Director shall make such decisions in an impartial and objective manner.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>No person may make any ex parte communication to the Director or to any employee of the Office with respect to a matter on which the Director has responsibility for making a final agency decision.</content></paragraph></subsection> <page identifier="/us/stat/111/2281">111 STAT. 2281</page> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>Whenever the Director has reason to believe that there has been retaliation against an employee by reason of the employee asserting rights under an equal employment opportunity law, the Director shall report the suspected retaliatory action directly to the Secretary or Deputy Secretary, who shall take appropriate action thereon.</content></subsection> <subsection class="indent0 fontsize10"><num value="d">“(d)</num><paragraph class="inline"><num value="1">(1) </num><content>The Office shall employ a sufficient number of attorneys and other personnel as are necessary to carry out the functions of the Office. Attorneys shall be compensated at a level commensurate with attorneys employed by the Office of the General Counsel.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The Secretary shall ensure that the Director is furnished sufficient resources in addition to personnel under paragraph (1) to enable the Director to carry out the functions of the Office in a timely manner.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>The Secretary shall ensure that any performance appraisal of the Director of the Office of Employment Discrimination Complaint Adjudication or of any employee of the Office does not take into consideration the record of the Director or employee in deciding cases for or against the Department”.</content></paragraph></subsection></section></quotedContent></content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of such chapter is amended by adding at the end the following new item: <quotedContent><toc><referenceItem role="section"><designator>“319. </designator><label>Office of Employment Discrimination Complaint Adjudication.”</label></referenceItem></toc></quotedContent></content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t38/s319">38 USC 319</ref> note.</p></sidenote><heading><inline class="smallCaps">Reports on Implementation.</inline>—</heading><content>The Director of the Office of Employment Discrimination Complaint Adjudication of the Department of Veterans Affairs (established by section 319 of title 38, United States Code, as added by subsection (a)) shall submit to the Secretary of Veterans Affairs and to Congress reports on the implementation and the operation of that office. The first such report shall be submitted not later than April 1, 1998, and subsequent reports shall be submitted not later than January 1, 1999, and January 1, 2000.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t38/s319">38 USC 319</ref> note.</p></sidenote><heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>Section 319 of title 38, United States Code, as added by subsection (a), shall take effect 90 days after the date of enactment of this Act.</content></subsection></section> <section><num value="103">SEC. 103. </num><heading>ASSESSMENT AND REVIEW OF DEPARTMENT OF VETERANS AFFAIRS EMPLOYMENT DISCRIMINATION COMPLAINT RESOLUTION SYSTEM.</heading> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t38/s516">38 USC 516</ref> note.</p></sidenote> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Agreement for Assessment and Review.—</inline></heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of Veterans Affairs shall seek to enter into an agreement with a qualified private entity under which agreement the entity shall carry out the assessment described in subsection (b) and the review described in subsection (c).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The Secretary shall include in the agreement provisions necessary to ensure that the entity carries out its responsibilities under the agreement (including the exercise of its judgments concerning the assessment and review) in a manner free of influence from any source, including the officials and employees of the Department of Veterans Affairs.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><content>The Secretary may not enter into the agreement until 15 days after the date on which the Secretary notifies the Committees on Veterans’ Affairs of the Senate and House of Representatives of the entity with which the Secretary proposes to enter into the agreement.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Initial Assessment of System</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Under the agreement under subsection (a), the entity shall conduct an assessment of the employment discrimination complaint resolution system <page identifier="/us/stat/111/2282">111 STAT. 2282</page>administered within the Department of Veterans Affairs, including the extent to which the system meets the objectives set forth in section 516(a) of title 38, United States Code, as added by section 101. The assessment shall include a comprehensive description of the system as of the time of the assessment.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Under the agreement, the entity shall submit the assessment to the committees referred to in subsection (a)(3) and to the Secretary not later than June 1, 1998.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Review of Administration of System</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Under the agreement under subsection (a), the entity shall monitor and review the administration by the Secretary of the employment discrimination complaint resolution system administered within the Department.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>Under the agreement, the entity shall submit to the committees referred to in subsection (a)(3) and to the Secretary a report on the results of the review under paragraph (1) not later than June 1, 1999. The report shall include an assessment of the administration of the system, including the extent to which the system meets the objectives referred to in subsection (b)(1), and the effectiveness of the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>Programs to train and maintain a cadre of individuals who are competent to investigate claims relating to employment discrimination.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>Programs to train and maintain a cadre of individuals who are competent to provide counseling to individuals who submit such claims.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>Programs to provide education and training to Department employees regarding their rights and obligations under the equal employment opportunity laws.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>Programs to oversee the administration of the system.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E) </num><content>Programs to evaluate the effectiveness of the system in meeting its objectives.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F) </num><content>Other programs, procedures, or activities of the Department relating to the equal employment opportunity laws, including any alternative dispute resolution procedures and informal dispute resolution and settlement procedures.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">(G) </num><content>Any disciplinary measures imposed by the Secretary on employees determined to have violated the equal employment opportunity laws in preventing or deterring violations of such laws by other employees of the Department.</content></subparagraph></paragraph></subsection></section> <num value="I">TITLE II—</num><heading>EXTENSION AND IMPROVEMENT OF AUTHORITIES</heading> <section><num value="201">SEC. 201. </num><heading>NATIVE AMERICAN VETERAN HOUSING LOAN PROGRAM.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Extension of Pilot Program</inline>.—</heading><content>Section 3761(c) is amended by striking out “September 30, 1997” and inserting in lieu thereof “December 31, 200?”.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Outreach</inline>.—</heading><chapeau>Section 3762(i) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>(1)</quotedText>” after “(i)”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting “<quotedText>, in consultation with tribal organizations (including the National Congress of American Indians and the National American Indian Housing Council),</quotedText>” after “The Secretary shall”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by striking out “tribal organizations and”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>by adding at the end the following: <page identifier="/us/stat/111/2283">111 STAT. 2283</page> <quotedContent><paragraph class="indent1 fontsize10"><num value="2">“(2) </num><chapeau>Activities under the outreach program shall include the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>Attending conferences and conventions conducted by the National Congress of American Indians in order to work with the National Congress in providing information and training to tribal organizations and Native American veterans regarding the availability of housing benefits under the pilot program and in assisting such organizations and veterans in participating in the pilot program.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>Attending conferences and conventions conducted by the National American Indian Housing Council in order to work with the Housing Council in providing information and training to tribal organizations and tribal housing entities regarding the availability of such benefits.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>Attending conferences and conventions conducted by the Department of Hawaiian Homelands in order to work with the Department of Hawaiian Homelands in providing information and training to tribal housing entities in Hawaii regarding the availability of such benefits.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>Producing and disseminating information to tribal governments, tribal veterans service organizations, and tribal organizations regarding the availability of such benefits.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E) </num><content>Assisting tribal organizations and Native American veterans in participating in the pilot program.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F) </num><content>Outstationing loan guarantee specialists in tribal facilities on a part-time basis if requested by the tribal government.”.</content></subparagraph></paragraph></quotedContent></content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Annual Reports</inline>.—</heading><content>Section 3762 is further amended by adding at the end the following new subsection: <quotedContent><subsection class="indent0 fontsize10"><num value="j">“(j) </num><chapeau>Not later than February 1 of each year through 2002, the Secretary shall transmit to the Committees on Veterans’ Affairs of the Senate and House of Representatives a report relating to the implementation of the pilot program under this subchapter during the fiscal year preceding the date of the report. Each such report shall include the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>The Secretary’s exercise during such fiscal year of the authority provided under subsection (c)(1)(B) to make loans exceeding the maximum loan amount.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><chapeau>The appraisals performed for the Secretary during such fiscal year under the authority of subsection (d)(2), including a description of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>the manner in which such appraisals were performed;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>the qualifications of the appraisers who performed such appraisals; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>the actions taken by the Secretary with respect to such appraisals to protect the interests of veterans and the United States.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><chapeau>The outreach activities undertaken under subsection (i) during such fiscal year, including—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>a description of such activities on a region-by-region basis; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>an assessment of the effectiveness of such activities in encouraging the participation of Native American veterans in the pilot program.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><chapeau>The pool of Native American veterans who are eligible for participation in the pilot program, including—</chapeau> <page identifier="/us/stat/111/2284">111 STAT. 2284</page> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>a description and analysis of the pool, including income demographics;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>a description and assessment of the impediments, if any, to full participation in the pilot program of the Native American veterans in the pool; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>the impact of low-cost housing programs operated by the Department of Housing and Urban Development and other Federal or State agencies on the demand for direct loans under this section.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><content>The Secretary’s recommendations, if any, for additional legislation regarding the pilot program.”.</content></paragraph></subsection></quotedContent></content></subsection></section> <section><num value="202">SEC. 202. </num><heading>TREATMENT AND REHABILITATION FOR SERIOUSLY MENTALLY ILL AND HOMELESS VETERANS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Codification and Revision of Programs</inline>.—</heading><content>Chapter 17 is amended by adding at the end the following new subchapter: <quotedContent> <subchapter><num value="VII">“SUBCHAPTER VII—</num><heading>TREATMENT AND REHABILITATION FOR SERIOUSLY MENTALLY ILL AND HOMELESS VETERANS</heading> <section><num value="1771">“§ 1771. </num><heading>General treatment</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><chapeau>In providing care and services under section 1710 of this title to veterans suffering from serious mental illness, including veterans who are homeless, the Secretary may provide (directly or in conjunction with a governmental or other entity)—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>outreach services,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>care, treatment, and rehabilitative services (directly or by contract in community-based treatment facilities, including halfway houses); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>therapeutic transitional housing assistance under section 1772 of this title, in conjunction with work therapy under subsection (a) or (b) of section 1718 of this title and outpatient care.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Expiration date.</p></sidenote><content>The authority of the Secretary under subsection (a) expires on December 31, 2001.</content></subsection></section> <section><num value="1772">“§ 1772. </num><heading>Therapeutic housing</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><content>The Secretary, in connection with the conduct of compensated work therapy programs, may operate residences and facilities as therapeutic housing.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>The Secretary may use such procurement procedures for the purchase, lease, or other acquisition of residential housing for purposes of this section as the Secretary considers appropriate to expedite the opening and operation of transitional housing and to protect the interests of the United States.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><chapeau>A residence or other facility may be operated as transitional housing for veterans described in paragraphs (1) and (2) of section 1710(a) of this title under the following conditions:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>Only veterans described in those paragraphs and a house manager may reside in the residence or facility.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>Each resident, other than the house manager, shall be required to make payments that contribute to covering the expenses of board and the operational costs of the residence or facility for the period of residence in such housing.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>In order to foster the therapeutic and rehabilitative objectives of such housing (A) residents shall be prohibited <page identifier="/us/stat/111/2285">111 STAT. 2285</page>from using alcohol or any controlled substance or item, (B) any resident violating that prohibition may be expelled from the residence or facility, and (C) each resident shall agree to undergo drug testing or such other measures as the Secretary shall prescribe to ensure compliance with that prohibition.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>In the establishment and operation of housing under this section, the Secretary shall consult with appropriate representatives of the community in which the housing is established and shall comply with zoning requirements, building permit requirements, and other similar requirements applicable to other real property used for similar purposes in the community.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><content>The residence or facility shall meet State and community fire and safety requirements applicable to other real property used for similar purposes in the community in which the transitional housing is located, but fire and safety requirements applicable to buildings of the Federal Government shall not apply to such property.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><content>The Secretary shall prescribe the qualifications for house managers for transitional housing units operated under this section. The Secretary may provide for free room and subsistence for a house manager in addition to, or instead of payment of, a fee for the services provided by the manager.</content></subsection> <subsection class="indent0 fontsize10"><num value="e">“(e)</num><paragraph class="inline"><num value="1">(1) </num><chapeau>The Secretary may operate as transitional housing under this section—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>any suitable residential property acquired by the Secretary as the result of a default on a loan made, guaranteed, or insured under chapter 37 of this title;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>any suitable space in a facility under the jurisdiction of the Secretary that is no longer being used (i) to provide acute hospital care, or (ii) as housing for medical center employees; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>any other suitable residential property purchased, leased, or otherwise acquired by the Secretary.</content></subparagraph></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><chapeau>In the case of any property referred to in paragraph (1)(A), the Secretary shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>transfer administrative jurisdiction over such property within the Department from the Veterans Benefits Administration to the Veterans Health Administration; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>transfer from the General Post Fund to the Loan Guaranty Revolving Fund under chapter 37 of this title an amount (not to exceed the amount the Secretary paid for the property) representing the amount the Secretary considers could be obtained by sale of such property to a nonprofit organization or a State for use as a shelter for homeless veterans.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>In the case of any residential property obtained by the Secretary from the Department of Housing and Urban Development under this section, the amount paid by the Secretary to that Department for that property may not exceed the amount that the Secretary of Housing and Urban Development would charge for the sale of that property to a nonprofit organization or a State for use as a shelter for homeless persons. Funds for such charge shall be derived from the General Post Fund.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><chapeau>The Secretary shall prescribe—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>a procedure for establishing reasonable payment rates for persons residing in transitional housing; and</content></paragraph> <page identifier="/us/stat/111/2286">111 STAT. 2286</page> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>appropriate limits on the period for which such persons may reside in transitional housing.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="g">“(g) </num><content>The Secretary may dispose of any property acquired for the purpose of this section. The proceeds of any such disposal shall be credited to the General Post Fund.</content></subsection> <subsection class="indent0 fontsize10"><num value="h">“(h) </num><content>Funds received by the Department under this section shall be deposited in the General Post Fund. The Secretary may distribute out of the fund such amounts as necessary for the acquisition, management, maintenance, and disposition of real property for the purpose of carrying out such program. The Secretary shall manage the operation of this section so as to ensure that expenditures under this subsection for any fiscal year shall not exceed by more than $500,000 proceeds credited to the General Post Fund under this section. The operation of the program and funds received shall be separately accounted for, and shall be stated in the documents accompanying the President’s budget for each fiscal year.</content></subsection></section> <section><num value="1773">“§ 1773. </num><heading>Additional services at certain locations</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><content>Subject to the availability of appropriations, the Secretary shall operate a program under this section to expand and improve the provision of benefits and services by the Department to homeless veterans.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>The program shall include the establishment of not fewer than eight programs (in addition to any existing programs providing similar services) at sites under the jurisdiction of the Secretary to be centers for the provision of comprehensive services to homeless veterans. The services to be provided at each site shall include a comprehensive and coordinated array of those specialized services which may be provided under existing law.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>The program shall include the services of such employees of the Veterans Benefits Administration as the Secretary determines appropriate at sites under the jurisdiction of the Secretary at which services are provided to homeless veterans.</content></subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Termination date.</p></sidenote><content>The program under this section shall terminate on December 31, 2001.</content></subsection></section> <section><num value="1774">“§ 1774. </num><heading>Coordination with other agencies and organizations</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><content>In assisting homeless veterans, the Secretary shall coordinate with, and may provide services authorized under this title in conjunction with, State and local governments, other appropriate departments and agencies of the Federal Government, and nongovernmental organizations.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b)</num><paragraph class="inline"><num value="1">(1) </num><content>The Secretary shall require the director of each medical center or the director of each regional benefits office to make an assessment of the needs of homeless veterans living within the area served by the medical center or regional office, as the case may be.</content></paragraph> <subsection class="indent0 fontsize10"><num value="2">“(2) </num><content>Each such assessment shall be made in coordination with representatives of State and local governments, other appropriate departments and agencies of the Federal Government, and nongovernmental organizations that have experience working with homeless persons in that area.</content></subsection> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><chapeau>Each such assessment shall identify the needs of homeless veterans with respect to the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>Health care.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>Education and training.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>Employment.</content></subparagraph> <page identifier="/us/stat/111/2287">111 STAT. 2287</page> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>Shelter.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E) </num><content>Counseling.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F) </num><content>Outreach services.</content></subparagraph></paragraph> <paragraph class="indent0 fontsize10"><num value="4">“(4) </num><content>Each assessment shall also indicate the extent to which the needs referred to in paragraph (3) are being met adequately by the programs of the Department, of other departments and agencies of the Federal Government, of State and local governments, and of nongovernmental organizations.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="5">“(5) </num><content>Each assessment shall be carried out in accordance with uniform procedures and guidelines prescribed by the Secretary.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><chapeau>In furtherance of subsection (a), the Secretary shall require the director of each medical center and the director of each regional benefits office, in coordination with representatives of State and local governments, other Federal officials, and nongovernmental organizations that have experience working with homeless persons in the areas served by such facility or office, to—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>develop a list of all public and private programs that provide assistance to homeless persons or homeless veterans m the area concerned, together with a description of the services offered by those programs;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>seek to encourage the development by the representatives of such entities, in coordination with the director, of a plan to coordinate among such public and private programs the provision of services to homeless veterans;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>take appropriate action to meet, to the maximum extent practicable through existing programs and available resources, the needs of homeless veterans that are identified in the assessment conducted under subsection (b); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>attempt to inform homeless veterans whose needs the director cannot meet under paragraph (3) of the services available to such veterans within the area served by such center or office.”.</content></paragraph></subsection></section></subchapter></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Conforming Amendments.—</inline></heading><paragraph class="inline"><num value="1">(1) </num><chapeau>Section 1720A is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking out subsections (a), (e), (f), and (g); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by redesignating subsections (b), (c), and (d) as subsections (a), (b), and (c), respectively.</content></subparagraph></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The heading of such section is amended to read as follows: <quotedContent><section><num value="1720A">“§ 1720A. </num><heading>Treatment and rehabilitative services for persons with drug or alcohol dependency”.</heading></section></quotedContent></content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Conforming Repeals.—</inline></heading><chapeau>The following provisions are repealed:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Section 7 of Public Law 102–54 (38 U.S.C. 1718 note).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Section 107 of the Veterans’ Medical Programs Amendments of 1992 (38 U.S.C. 527 note).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Section 2 of the Homeless Veterans Comprehensive Service Programs Act of 1992 (38 U.S.C. 7721 note).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Section 115 of the Veterans’ Benefits and Services Act of 1988 (38 U.S.C. 1712 note).</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Clerical Amendments</inline>.—</heading><chapeau>The table of sections at the beginning of chapter 17 is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out the item relating to section 1720A and inserting in lieu thereof the following: <quotedContent><toc><referenceItem role="section"><designator>“1720A. </designator><label>Treatment and rehabilitative services for persons with drug or alcohol dependency.”; and</label></referenceItem></toc></quotedContent></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following: <page identifier="/us/stat/111/2288">111 STAT. 2288</page> <quotedContent><toc><referenceItem role="subchapter"><designator>“SUBCHAPTER VII—</designator><label>TREATMENT AND REHABILITATION FOR SERIOUSLY MENTALLY ILL AND HOMELESS VETERANS</label></referenceItem> <referenceItem role="section"><designator>“1771. </designator><label>General treatment.</label></referenceItem> <referenceItem role="section"><designator>“1772. </designator><label>Therapeutic housing.</label></referenceItem> <referenceItem role="section"><designator>“1773. </designator><label>Additional services at certain locations.</label></referenceItem> <referenceItem role="section"><designator>“1774. </designator><label>Coordination with other agencies and organizations”.</label></referenceItem></toc></quotedContent></content></paragraph></subsection></section> <section><num value="203">SEC. 203. </num><heading>EXTENSION OF CERTAIN AUTHORITIES RELATING TO HOMELESS VETERANS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Agreements for Housing Assistance for Homeless Veterans</inline>.—</heading><content>Section 3735(c) is amended by striking out “December 31, 1997” and inserting in lieu thereof “December 31, 1999”.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Extension of Homeless Veterans Comprehensive Service Grant Program</inline>.—</heading><content>Section 3(a)(2) of the Homeless Veterans Comprehensive Service Programs Act of 1992 (38 U.S.C. 7721 note) is amended by striking out “September 30, 1997” and inserting in lieu thereof “September 30, 1999”.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Homeless Veterans’ Reintegration Projects</inline>.—</heading><chapeau>The Stewart B. McKinney Homeless Assistance Act is amended as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Section 738(e)(1) (42 U.S.C. 11448(e)(1)) is amended by adding at the end the following new subparagraph: <quotedContent><subparagraph class="indent2 fontsize10"><num value="G">“(G) </num><content>$10,000,000 for fiscal year 1999.”.</content></subparagraph></quotedContent></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Section 741 (42 U.S.C. 11450) is amended by striking out “December 31, 1997” and inserting in lieu thereof “December 31, 1999”.</content></paragraph></subsection></section> <section><num value="204">SEC. 204. </num><heading>ANNUAL REPORT ON ASSISTANCE TO HOMELESS VETERANS.</heading> <chapeau>Section 1001 of the Veterans’ Benefits Improvements Act of 1994 (38 U.S.C. 7721 note) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>in subsection (a)(2)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking out “and” at the end of subparagraph (B);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking out the period at the end of subparagraph (C) and inserting in lieu thereof “; and”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>by adding at the end the following new subparagraphs: <quotedContent><subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>evaluate the effectiveness of the programs of the Department (including residential work-therapy programs, programs combining outreach, community-based residential treatment, and case-management, and contract care programs for alcohol and drug-dependence or abuse disabilities) in providing assistance to homeless veterans; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E) </num><content>evaluate the effectiveness of programs established by recipients of grants under section 3 of the Homeless Veterans Comprehensive Service Programs Act of 1992 (38 U.S.C. 7721 note), and describe the experience of such recipients in applying for and receiving grants from the Secretary of Housing and Urban Development to serve primarily homeless persons who are veterans.”; and</content></subparagraph></quotedContent></content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking out subsection (b).</content></paragraph></section> <section><num value="205">SEC. 205. </num><heading>EXPANSION OF AUTHORITY FOR ENHANCED-USE LEASES OF DEPARTMENT OF VETERANS AFFAIRS REAL PROPERTY.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Four-Year Extension of Authority</inline>.—</heading><content>Section 8169 is amended by striking out “December 31, 1997” and inserting in lieu thereof “December 31, 2001”.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Repeal of Limitation on Number of Agreements</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Section 8168 is repealed.</content></paragraph> <page identifier="/us/stat/111/2289">111 STAT. 2289</page> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of chapter 81 is amended by striking out the item relating to section 8168.</content></paragraph></subsection></section> <section><num value="206">SEC. 206. </num><heading>PERMANENT AUTHORITY TO FURNISH NONINSTITUTIONAL ALTERNATIVES TO NURSING HOME CARE.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Permanent Authority</inline>.—</heading><content>Subsection (a) of section 1720C is amended by striking out “During” and all that follows through “furnishing of” and inserting in lieu thereof “The Secretary may furnish”.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Conforming Amendments.—</inline></heading><paragraph class="inline"><num value="1">(1) </num><content>Subsections (b)(1) and (d) of such section are amended by striking out “pilot”.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The heading for such section is amended to read as follows: <quotedContent><section><num value="1720C">“§ 1720C. </num><content>Noninstitutional alternatives to nursing home care”.</content></section></quotedContent></content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><content>The item relating to such section in the table of sections at the beginning of chapter 17 is amended to read as follows: <quotedContent><toc><referenceItem role="section"><designator>“1720C. </designator><label>Noninstitutional alternatives to nursing home care.”.</label></referenceItem></toc></quotedContent></content></paragraph></subsection></section> <section><num value="207">SEC. 207. </num><heading>EXTENSION OF HEALTH PROFESSIONAL SCHOLARSHIP PROGRAM.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Extension.</inline>—</heading><content>Section 7618 is amended by striking out “December 31, 1997” and inserting in lieu thereof “December 31, 1998”.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Submission of Overdue Report</inline>.—</heading><content>The Secretary of Veterans <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t38/s7611">38 USC 7611</ref> note.</p></sidenote>Affairs shall submit to Congress not later than 180 days after the date of the enactment of this Act the report evaluating the operation of the health professional scholarship program required to be submitted not later than March 31, 1997, under section 202(b) of Public Law 104–110 (110 Stat. 770).</content></subsection></section> <section><num value="208">SEC. 208. </num><heading>POLICY ON BREAST CANCER MAMMOGRAPHY.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Subchapter II of chapter 73 is amended by adding at the end the following new section: <quotedContent><section><num value="7322">“§ 7322. </num><heading>Breast cancer mammography policy</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><content>The Under Secretary for Health shall develop a national policy for the Veterans Health Administration on mammography screening for veterans.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>The policy developed under subsection (a) shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>specify standards of mammography screening;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><chapeau>provide recommendations with respect to screening, and the frequency of screening, for—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>women veterans who are over the age of 39; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>veterans, without regard to age, who have clinical symptoms, risk factors, or family history of breast cancer; and</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>provide for clinician discretion.”.</content></paragraph></subsection></section></quotedContent></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 7321 the following new item: <quotedContent><toc><referenceItem role="section"><designator>“7322. </designator><label>Breast cancer mammography policy.”.</label></referenceItem></toc></quotedContent></content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Effective Date.</inline>—</heading><content>The Secretary of Veterans Affairs shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t38/s7322">38 USC 7322</ref> note.</p></sidenote>develop the national policy on mammography screening required <page identifier="/us/stat/111/2290">111 STAT. 2290</page>by section 7322 of title 38, United States Code, as added by subsection (a), and shall furnish such policy in a report to the Committees on Veterans’ Affairs of the Senate and House of Representatives, not later than 60 days after the date of the enactment of this Act. Such policy shall not take effect before the expiration of 30 days after the date of its submission to those committees.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t38/s7322">38 USC 7322</ref> note.</p></sidenote><heading><inline class="smallCaps">Sense of Congress.</inline>—</heading><content>It is the sense of Congress that the policy developed under section 7322 of title 38, United States Code, as added by subsection (a), shall be in accordance with the guidelines endorsed by the Secretary of Health and Human Services and the Director of the National Institutes of Health.</content></subsection></section> <section><num value="209">SEC. 209. </num><heading>PERSIAN GULF WAR VETERANS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Criteria for Priority Health Care</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Subsection (a)(2)(F) of section 1710 is amended by striking out “environmental hazard” and inserting in lieu thereof “other conditions”.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>Subsection (e)(1)(C) of such section is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking out “the Secretary finds may have been exposed while serving” and inserting in lieu thereof “served”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking out “to a toxic substance or environmental hazard”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>by striking out “exposure” and inserting in lieu thereof “service”.</content></subparagraph></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><content>Subsection (e)(2)(B) of such section is amended by striking out “an exposure” and inserting in lieu thereof “the service”.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t38/s1710">38 USC 1710</ref> note.</p></sidenote><heading><inline class="smallCaps">Demonstration Projects for Treatment of Persian Gulf Illness</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of Veterans Affairs shall carry out a program of demonstration projects to test new approaches to treating, and improving the satisfaction with such treatment of, Persian Gulf veterans who suffer from undiagnosed and ill- defined disabilities. The program shall be established not later than July 1, 1998, and shall be carried out at up to 10 geographically dispersed medical centers of the Department of Veterans Affairs.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>At least one of each of the following models shall be used at no less than two of the demonstration projects:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>A specialized clinic which serves Persian Gulf veterans.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>Multidisciplinary treatment aimed at managing symptoms.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>Use of case managers.</content></subparagraph></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><content>A demonstration project under this subsection may be undertaken in conjunction with another funding entity, including agreements under section 8111 of title 38, United States Code.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="4">(4) </num><content>The Secretary shall make available from appropriated funds (which have been retained for contingent funding) $5,000,000 to carry out the demonstration projects.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="5">(5) </num><chapeau>The Secretary may not approve a medical center as a location for a demonstration project under this subsection unless a peer review panel has determined that the proposal submitted by that medical center is among those proposals that have met the highest competitive standards of clinical merit and the Secretary has determined that the facility has the ability to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>attract the participation of clinicians of outstanding caliber and innovation to the project; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>effectively evaluate the activities of the project.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>In determining which medical centers to select as locations for demonstration projects under this subsection, the Secretary shall give special priority to medical centers that have demonstrated <page identifier="/us/stat/111/2291">111 STAT. 2291</page>a capability to compete successfully for extramural funding support for research into the effectiveness and cost-effectiveness of the care provided under the demonstration project.</content></paragraph></subsection></section> <section><num value="210">SEC. 210. </num><heading>PRESIDENTIAL REPORT ON PREPARATIONS FOR A NATIONAL RESPONSE TO MEDICAL EMERGENCIES ARISING FROM THE TERRORIST USE OF WEAPONS OF MASS DESTRUCTION.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Report</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Not later than March 1, 1998, the President shall submit to Congress a report on the plans, preparations, and capability of the Federal Government and State and local governments for a national response to medical emergencies arising from the terrorist use of weapons of mass destruction. The report shall be submitted in unclassified form, but may include a classified annex.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The report should be prepared in consultation with the Secretary of Defense, the Secretary of Health and Human Services, the Secretary of Veterans Affairs, the Director of the Federal Emergency Management Agency, and the head of any other department or agency of the Federal Government that may be involved in responding to such emergencies. The President shall designate a lead agency for purposes of the preparation of the report.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Contents</inline>.—</heading><chapeau>The report shall include the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>A description of the steps taken by the Federal Government to plan and prepare for a national response to medical emergencies arising from the terrorist use of weapons of mass destruction.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>A description of the laws and agreements governing the responsibilities of the various departments and agencies of the Federal Government, and of State and local governments, for the response to such emergencies, and an assessment of the interrelationship of such responsibilities under such laws and agreements.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Recommendations, if any, for the simplification or improvement of such responsibilities.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>An assessment of the current level of preparedness for such response of all departments and agencies of the Federal Government and State and local governments that are responsible for such response.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>A current inventory of the existing medical assets from all sources which can be made available for such response.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>Recommendations, if any, for the improved or enhanced use of the resources of the Federal Government and State and local governments for such response.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>The name of the official or office of the Federal Government designated to coordinate the response of the Federal Government to such emergencies.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>A description of the lines of authority between the departments and agencies of the Federal Government to be involved in the response of the Federal Government to such emergencies.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><content>A description of the roles of each department and agency of the Federal Government to be involved in the preparations for, and implementation of, the response of the Federal Government to such emergencies.</content></paragraph> <page identifier="/us/stat/111/2292">111 STAT. 2292</page> <paragraph class="indent1 fontsize10"><num value="10">(10) </num><content>The estimated costs of each department and agency of the Federal Government to prepare for and carry out its role as described under paragraph (9).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="11">(11) </num><content>A description of the steps, if any, being taken to create a funding mechanism for the response of the Federal Government to such emergencies.</content></paragraph></subsection></section> <num value="I">TITLE III—</num><heading>MAJOR MEDICAL FACILITY PROJECTS CONSTRUCTION AUTHORIZATION</heading> <section><num value="301">SEC. 301. </num><heading>AUTHORIZATION OF MAJOR MEDICAL FACILITY PROJECTS.</heading> <chapeau>The Secretary of Veterans Affairs may carry out the following major medical facility projects, with each project to be carried out in the amount specified for that project:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Seismic corrections at the Department of Veterans Affairs medical center in Memphis, Tennessee, in an amount not to exceed $34,600,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Seismic corrections and clinical and other improvements to the McClellan Hospital at Mather Field, Sacramento, California, in an amount not to exceed $48,000,000, to be derived only from funds appropriated for Construction, Major Projects, for a fiscal year before fiscal year 1998 that remain available for obligation.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Outpatient improvements at Mare Island, Vallejo, California, and Martinez, California, in a total amount not to exceed $7,000,000, to be derived only from funds appropriated for Construction, Major Projects, for a fiscal year before fiscal year 1998 that remain available for obligation.</content></paragraph></section> <section><num value="302">SEC. 302. </num><heading>AUTHORIZATION OF MAJOR MEDICAL FACILITY LEASES.</heading> <chapeau>The Secretary of Veterans Affairs may enter into leases for medical facilities as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Lease of an information management field office, Birmingham, Alabama, in an amount not to exceed $595,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Lease of a satellite outpatient clinic, Jacksonville, Florida, in an amount not to exceed $3,095,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Lease of a satellite outpatient clinic, Boston, Massachusetts, in an amount not to exceed $5,215,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Lease of a satellite outpatient clinic, Canton, Ohio, in an amount not to exceed $2,115,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Lease of a satellite outpatient clinic, Portland, Oregon, in an amount not to exceed $1,919,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>Lease of a satellite outpatient clinic, Tulsa, Oklahoma, in an amount not to exceed $2,112,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>Lease of an information resources management field office, Salt Lake City, in an amount not to exceed $652,000.</content></paragraph></section> <section><num value="303">SEC. 303. </num><heading>AUTHORIZATION OF APPROPRIATIONS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>There are authorized to be appropriated to the Secretary of Veterans Affairs for fiscal year 1998—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>for the Construction, Major Projects, account, $34,600,000 for the project authorized in section 301(1); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>for the Medical Care account, $15,703,000 for the leases authorized in section 302.</content></paragraph></subsection> <page identifier="/us/stat/111/2293">111 STAT. 2293</page> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Limitation</inline>.—</heading><chapeau>The projects authorized in section 301 may only be carried out using—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>funds appropriated for fiscal year 1998 pursuant to the authorization of appropriations in subsection (a);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>funds appropriated for Construction, Major Projects for a fiscal year before fiscal year 1998 that remain available for obligation; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>funds appropriated for Construction, Major Projects for fiscal year 1998 for a category of activity not specific to a project.</content></paragraph></subsection></section> <num value="I">TITLE IV—</num><heading>TECHNICAL AND CLARIFYING AMENDMENTS</heading> <section><num value="401">SEC. 401. </num><heading>TECHNICAL AMENDMENTS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Plot Allowance for Deaths in Department Facilities</inline>.—</heading><content>Section 2303(a)(2)(A) is amended by striking out “a Department facility (as defined in section 1701(4) of this title)” and inserting in lieu thereof “a facility of the Department (as defined in section 1701(3) of this title)”.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Educational Assistance Allowance for Certain Individuals Pursuing Cooperative Programs</inline>.—</heading><chapeau>Section 3015(e)(1) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking out “(1) Subject to paragraph (2)” and inserting in lieu thereof “(1)(A) Except as provided in subparagraph (B) of this paragraph and subject to paragraph (2)”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following: <quotedContent><subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>Notwithstanding subparagraph (A) of this paragraph, in the case of an individual described in that subparagraph who is pursuing a cooperative program on or after October 9, 1996, the rate of the basic educational assistance allowance applicable to such individual under this chapter shall be increased by the amount equal to one-half of the educational assistance allowance that would be applicable to such individual for pursuit of full-time institutional training under chapter 34 (as of the time the assistance under this chapter is provided and based on the rates in effect on December 31, 1989) if such chapter were in effect.”.</content></subparagraph></quotedContent></content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Eligibility of Certain VEAP Participants To Enroll in Montgomery GI Bill</inline>.—</heading><chapeau>Section 3018C(a) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in paragraph (1), by striking out “the date of the enactment of the Veterans’ Benefits Improvements Act of 1996” and inserting in lieu thereof “October 9, 1996,”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in paragraph (4), by striking out “during the one-year period specified” and inserting in lieu thereof “after the date on which the individual makes the election described”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>in paragraph (5), by striking out “the date of the enactment of the Veterans’ Benefits Improvements Act of 1996” and inserting in lieu thereof “October 9, 1996”.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Enrollment in Open Circuit Television Courses</inline>.—</heading><content>Section 3680A(a)(4) is amended by inserting “<quotedText>(including open circuit television)</quotedText>” after “independent study program” the second place it appears.</content></subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><heading><inline class="smallCaps">Enrollment in Certain Courses</inline>.—</heading><content>Section 3680A(g) is amended by striking out “subsections (e) and (f)” and inserting in lieu thereof “subsections (e) and (f)(1)”.</content></subsection> <page identifier="/us/stat/111/2294">111 STAT. 2294</page> <subsection class="indent0 fontsize10"><num value="f">(f) </num><heading><inline class="smallCaps">Certain Benefits for Surviving Spouses</inline>.—</heading><content>Section 5310(b)(2) is amended by striking out “under this paragraph” in the first sentence and inserting in lieu thereof “under paragraph (1)”.</content></subsection></section> <section><num value="402">SEC. 402. </num><heading>CLARIFICATION OF CERTAIN HEALTH CARE AUTHORITIES.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Eligibility for Hospital Care and Medical Services</inline>.—</heading><content>Section 1710(a)(2)(B) is amended by striking out “compensable”.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Home Health Services</inline>.—</heading><chapeau>Section 1717(a) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in paragraph (1), by striking out “veteran’s disability” and inserting in lieu thereof “veteran”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in paragraph (2)(B), by striking out “section 1710(a)(2)” and inserting in lieu thereof “section 1710(a)”.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Authority To Transfer Veterans Receiving Outpatient Care to Non-Department Nursing Homes</inline>.—</heading><content>Section 1720(a)(1)(A)(i) is amended by striking out “hospital care, nursing home care, or domiciliary care” and inserting in lieu thereof “care”.</content></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Acquisition of Commercial Health Care Resources</inline>.—</heading><content>Section 8153(a)(3)(A) is amended by inserting “<quotedText>(including any Executive order, circular, or other administrative policy)</quotedText>” after “law or regulation”.</content></subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><heading><inline class="smallCaps">Competition in Procurement of Commercial Health Care Resources</inline>.—</heading><content>Section 8153(a)(3)(B)(ii) is amended in the second sentence by inserting “<quotedText>, as appropriate,</quotedText>” after “all responsible sources”.</content></subsection></section> <section><num value="403">SEC. 403. </num><heading>CORRECTION OF NAME OF MEDICAL CENTER.</heading> <content>The facility of the Department of Veterans Affairs in Columbia, South Carolina, known as the Wm. Jennings Bryan Dorn Veterans’ Hospital shall hereafter be known and designated as the “Wm. Jennings Bryan Dorn Department of Veterans Affairs Medical Center”. Any reference to that facility in any law, regulation, document, map, record, or other paper of the United States shall be deemed to be a reference to the Wm. Jennings Bryan Dorn Department of Veterans Affairs Medical Center.</content></section> <section><num value="404">SEC. 404. </num><heading>IMPROVEMENT TO SPINA BIFIDA BENEFITS FOR CHILDREN OF VIETNAM VETERANS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><content>The text of section 1801 is amended to read as follows: <quotedContent><chapeau>“For the purposes of this chapter—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>The term ‘child’, with respect to a Vietnam veteran, means a natural child of a Vietnam veteran, regardless of age or marital status, who was conceived after the date on which the Vietnam veteran first entered the Republic of Vietnam during the period beginning on January 9, 1962, and ending on May 7, 1975.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The term Vietnam veteran’ means an individual who performed active military, naval, or air service in the Republic of Vietnam during the period beginning on January 9, 1962, and ending on May 7, 1975, without regard to the characterization of the individual’s service.”.</content></paragraph></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Applicability of Certain Administrative Provisions</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Section 1806 is amended to read as follows: <quotedContent><section><num value="1806">“§ 1806. </num><heading>Applicability of certain administrative provisions</heading> <content>“The provisions of sections 5101(c), 5110(a), (b)(2), (g), and (i), 5111, and 5112(a), (b)(1), (b)(6), (b)(9), and (b)(10) of this title <page identifier="/us/stat/111/2295">111 STAT. 2295</page>shall be deemed to apply to benefits under this chapter in the same manner in which they apply to veterans’ disability compensation.”.</content></section></quotedContent></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The item relating to section 1806 in the table of sections at the beginning of chapter 18 is amended to read as follows: <quotedContent><toc><referenceItem role="section"><designator>“1806. </designator><label>Applicability of certain administrative provisions”.</label></referenceItem></toc></quotedContent></content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Amendments to Vocational Rehabilitation Provisions.</inline>—</heading><chapeau>Section 1804 is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subsection (b), by striking out “shall be designed” and all that follows and inserting in lieu thereof the following: “shall— <quotedContent><paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>be designed in consultation with the child in order to meet the child’s individual needs;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>be set forth in an individualized written plan of vocational rehabilitation; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>be designed and developed before the date specified in subsection (d)(3) so as to permit the beginning of the program as of the date specified in that subsection.”;</content></paragraph></quotedContent></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in subsection (c)(1)(B), by striking out “institution of higher education” and inserting in lieu thereof “institution of higher learning”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by adding at the end of subsection (d) the following new paragraph: <quotedContent><paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>A vocational training program under this section may begin on the child’s 18th birthday, or on the successful completion of the child’s secondary schooling, whichever first occurs, except that, if the child is above the age of compulsory school attendance under applicable State law and the Secretary determines that the child’s best interests will be served thereby, the vocational training program may begin before the child’s 18th birthday”.</content></paragraph></quotedContent></content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Effective Date.</inline>—</heading><content>The amendments made by this section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t38/s1801">38 USC 1801</ref> note.</p></sidenote>shall take effect as of October 1, 1997.</content></subsection></section> Approved November 21, 1997.
LEGISLATIVE HISTORY—S. 714: SENATE REPORTS: No. 105–123 (Comm. on Veterans’ Affairs). CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 5, considered and passed Senate.

Nov. 9, considered and passed House, amended.

Nov. 10, Senate concurred in House amendments.

 Public Law 105–115: To amend the Federal Food, Drug, and Cosmetic Act and the Public Health Service Act to improve the regulation of food, drugs, devices, and biological products, and for other purposes. Public Law115 Public Law 105–115 111 Stat. 2296 1997-11-21 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2296 Public Law105–115 105th Congress
An Act To amend the Federal Food, Drug, and Cosmetic Act and the Public Health Service Act to improve the regulation of food, drugs, devices, and biological products, and for other purposes.

Nov. 21, 1997

[S. 830]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Food and Drug Administration Modernization Act of 1997.

21 USC 301 note.
SECTION 1. SHORT TITLE; REFERENCES; TABLE OF CONTENTS. (a) Short Title.—This Act may be cited as the “Food and Drug Administration Modernization Act of 1997”. (b) References.—Except as otherwise specified, whenever in this Act an amendment or repeal is expressed in terms of an amendment to or a repeal of a section or other provision, the reference shall be considered to be made to that section or other provision of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301 et seq.). (c) Table of Contents.—The table of contents for this Act is as follows: Sec. 1. Sec. 2. TITLE I— Subtitle A— Sec. 101. Sec. 102. Sec. 103. Sec. 104. Sec. 105. Sec. 106. Sec. 107. Subtitle B— Sec. 111. Sec. 112. Sec. 113. Sec. 114. Sec. 115. Sec. 116. Sec. 117. Sec. 118. Sec. 119. Sec. 120. Sec. 121. Sec. 122. Sec. 123. Sec. 124. Sec. 125. Sec. 126. Sec. 127. 111 STAT. 2297 Sec. 128. Sec. 129. Sec. 130. Sec. 131. TITLE II— Sec. 201. Sec. 202. Sec. 203. Sec. 204. Sec. 205. Sec. 206. Sec. 207. Sec. 208. Sec. 209. Sec. 210. Sec. 211. Sec. 212. Sec. 213. Sec. 214. Sec. 215. Sec. 216. Sec. 217. TITLE III— Sec. 301. Sec. 302. Sec. 303. Sec. 304. Sec. 305. Sec. 306. Sec. 307. Sec. 308. Sec. 309. TITLE IV— Sec. 401. Sec. 402. Sec. 403. Sec. 404. Sec. 405. Sec. 406. Sec. 407. Sec. 408. Sec. 409. Sec. 410. Sec. 411. Sec. 412. Sec. 413. Sec. 414. Sec. 415. Sec. 416. Sec. 417. Sec. 418. Sec. 419. Sec. 420. Sec. 421. Sec. 422. TITLE V— Sec. 501.
SEC. 2. DEFINITIONS.

21 USC 321 note.

 In this Act, the terms “drug”, “device”, “food”, and “dietary supplement” have the meaning given such terms in section 201 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321).
111 STAT. 2298 <num value="I">TITLE I—</num><heading>IMPROVING REGULATION OFDRUGS</heading> <subtitle> <num value="A">Subtitle A—</num><heading>Fees Relating to Drugs</heading> <section><num value="101">SEC. 101. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s379g">21 USC 379g</ref> note.</p></sidenote><heading>FINDINGS.</heading> <chapeau>Congress finds that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>prompt approval of safe and effective new drugs and other therapies is critical to the improvement of the public health so that patients may enjoy the benefits provided by these therapies to treat and prevent illness and disease;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the public health will be served by making additional funds available for the purpose of augmenting the resources of the Food and Drug Administration that are devoted to the process for review of human drug applications;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><chapeau>the provisions added by the Prescription Drug User Fee Act of 1992 have been successful in substantially reducing review times for human drug applications and should be—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>reauthorized for an additional 5 years, with certain technical improvements; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>carried out by the Food and Drug Administration with new commitments to implement more ambitious and comprehensive improvements in regulatory processes of the Food and Drug Administration; and</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>the fees authorized by amendments made in this subtitle will be dedicated toward expediting the drug development process and the review of human drug applications as set forth in the goals identified, for purposes of part 2 of subchapter C of chapter VII of the Federal Food, Drug, and Cosmetic Act, in the letters from the Secretary of Health and Human Services to the chairman of the Committee on Commerce of the House of Representatives and the chairman of the Committee on Labor and Human Resources of the Senate, as set forth in the Congressional Record.</content></paragraph></section> <section><num value="102">SEC. 102. </num><heading>DEFINITIONS.</heading> <chapeau>Section 735 (21 U.S.C. 379g) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>in the second sentence of paragraph (1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking “<quotedText>Service Act, and</quotedText>” and inserting “<quotedText>Service Act,</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking “<quotedText>September 1, 1992.</quotedText>” and inserting the following: “September 1, 1992, does not include an application for a licensure of a biological product for further manufacturing use only, and does not include an application or supplement submitted by a State or Federal Government entity for a drug that is not distributed commercially. Such term does include an application for licensure, as described in subparagraph (D), of a large volume biological product intended for single dose injection for intravenous use or infusion.”;</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>in the second sentence of paragraph (3)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking “<quotedText>Service Act, and</quotedText>” and inserting “<quotedText>Service Act,</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking “September 1, 1992.” and inserting the following: “September 1, 1992, does not include a <page identifier="/us/stat/111/2299">111 STAT. 2299</page>biological product that is licensed for further manufacturing use only, and does not include a drug that is not distributed commercially and is the subject of an application or supplement submitted by a State or Federal Government entity. Such term does include a large volume biological product intended for single dose injection for intravenous use or infusion.”;</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>in paragraph (4), by striking “<quotedText>without</quotedText>” and inserting “<quotedText>without substantial</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>by amending the first sentence of paragraph (5) to read as follows: <quotedContent><paragraph class="indent1 fontsize10"><num value="5">“(5) </num><content>The term ‘prescription drug establishment’ means a foreign or domestic place of business which is at one general physical location consisting of one or more buildings all of which are within five miles of each other and at which one or more prescription drug products are manufactured in final dosage form.”;</content></paragraph></quotedContent></content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><chapeau>in paragraph (7)(A)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking “<quotedText>employees under contract</quotedText>” and all that follows through “Administration,” the second time it occurs and inserting “<quotedText>contractors of the Food and Drug Administration,</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking “<quotedText>and committees,</quotedText>” and inserting “<quotedText>and committees and to contracts with such contractors,</quotedText>”;</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><chapeau>in paragraph (8)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><chapeau>in subparagraph (A)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>by striking “<quotedText>August of</quotedText>” and inserting “<quotedText>April of</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>by striking “<quotedText>August 1992</quotedText>” and inserting “<quotedText>April 1997</quotedText>”; and</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><chapeau>in subparagraph (B)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>by striking “<quotedText>section 254(d)</quotedText>” and inserting “<quotedText>section 254(c)</quotedText>”;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>by striking “<quotedText>1992</quotedText>” and inserting “<quotedText>1997</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii) </num><content>by striking “<quotedText>102d Congress, 2d Session</quotedText>” and inserting “<quotedText>105th Congress, 1st Session</quotedText>”; and</content></clause></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>by adding at the end the following: <quotedContent><paragraph class="indent1 fontsize10"><num value="9">“(9) </num><chapeau>The term ‘affiliate’ means a business entity that has a relationship with a second business entity if, directly or indirectly—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>one business entity controls, or has the power to control, the other business entity; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>a third party controls, or has power to control, both of the business entities.”.</content></subparagraph></paragraph></quotedContent></content></paragraph></section> <section><num value="103">SEC. 103. </num><heading>AUTHORITY TO ASSESS AND USE DRUG FEES.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Types of Fees.—</inline></heading><chapeau>Section 736(a) (21 U.S.C. 379h(a)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking “<quotedText>Beginning in fiscal year 1993</quotedText>” and inserting “<quotedText>Beginning in fiscal year 1998</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>in paragraph (1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking subparagraph (B) and inserting the following: <quotedContent><subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><heading><inline class="smallCaps">Payment</inline>.—</heading><content>The fee required by subparagraph (A) shall be due upon submission of the application or supplement.”;</content></subparagraph></quotedContent></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><chapeau>in subparagraph (D)—</chapeau> <page identifier="/us/stat/111/2300">111 STAT. 2300</page> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>in the subparagraph heading, by striking “<quotedText><inline class="smallCaps">not accepted</inline></quotedText>” and inserting “<quotedText><inline class="smallCaps">refused</inline></quotedText>”;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>by striking “<quotedText>50 percent</quotedText>” and inserting “<quotedText>75 percent</quotedText>”;</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii) </num><content>by striking “<quotedText>subparagraph (B)(i)</quotedText>” and inserting “<quotedText>subparagraph (B)</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="iv">(iv) </num><content>by striking “<quotedText>not accepted</quotedText>” and inserting “<quotedText>refused</quotedText>”; and</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>by adding at the end the following: <quotedContent><subparagraph class="indent2 fontsize10"><num value="E">“(E) </num><heading><inline class="smallCaps">Exception for designated orphan drug or indication</inline>.—</heading><content>A human drug application for a prescription drug product that has been designated as a drug for a rare disease or condition pursuant to section 526 shall not be subject to a fee under subparagraph (A), unless the human drug application includes an indication for other than a rare disease or condition. A supplement proposing to include a new indication for a rare disease or condition in a human drug application shall not be subject to a fee under subparagraph (A), if the drug has been designated pursuant to section 526 as a drug for a rare disease or condition with regard to the indication proposed in such supplement.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F) </num><heading><inline class="smallCaps">Exception for supplements for pediatric indications.</inline>—</heading><content>A supplement to a human drug application proposing to include a new indication for use in pediatric populations shall not be assessed a fee under subparagraph (A).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">“(G) </num><heading><inline class="smallCaps">Refund of fee if application withdrawn</inline>.—</heading><content>If an application or supplement is withdrawn after the application or supplement was filed, the Secretary may refund the fee or a portion of the fee if no substantial work was performed on the application or supplement after the application or supplement was filed. The Secretary shall nave the sole discretion to refund a fee or a portion of the fee under this subparagraph. A determination by the Secretary concerning a refund under this paragraph shall not be reviewable.”;</content></subparagraph></quotedContent></content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by striking paragraph (2) and inserting the following: <quotedContent><paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">Prescription drug establishment fee</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Except as provided in subparagraph (B), each person that—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>is named as the applicant in a human drug application; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>after September 1, 1992, had pending before the Secretary a human drug application or supplement, shall be assessed an annual fee established in subsection (b) for each prescription drug establishment listed in its approved human drug application as an establishment that manufactures the prescription drug product named in the application. The annual establishment fee shall be assessed in each fiscal year in which the prescription drug product named in the application is assessed a fee under paragraph (3) unless the prescription drug establishment listed in the application does not engage in the manufacture of the prescription drug product during the fiscal year. The establishment fee shall be payable on or before January 31 of each year. Each such establishment shall be assessed <page identifier="/us/stat/111/2301">111 STAT. 2301</page>only one fee per establishment, notwithstanding the number of prescription drug products manufactured at the establishment. In the event an establishment is listed in a human drug application by more than one applicant, the establishment fee for the fiscal year shall be divided equally and assessed among the applicants whose prescription drug products are manufactured by the establishment during the fiscal year and assessed product fees under paragraph (3).</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><heading><inline class="smallCaps">Exception</inline>.—</heading><chapeau>If, during the fiscal year, an applicant initiates or causes to be initiated the manufacture of a prescription drug product at an establishment listed in its human drug application—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>that did not manufacture the product in the previous fiscal year; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>for which the full establishment fee has been assessed in the fiscal year at a time before manufacture of the prescription drug product was begun;</content></clause> <continuation class="indent0 fontsize10">the applicant will not be assessed a share of the establishment fee for the fiscal year in which the manufacture of the product began.”; and</continuation></subparagraph></paragraph></quotedContent></content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><chapeau>in paragraph (3)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><chapeau>in subparagraph (A)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>in clause (i), by striking “<quotedText>is fisted</quotedText>” and inserting “<quotedText>has been submitted for listing</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>by striking “<quotedText>Such fee shall be payable</quotedText>” and all that follows through “section 510.” and inserting the following: “Such fee shall be payable for the fiscal year in which the product is first submitted for listing under section 510, or is submitted for relisting under section 510 if the product has been withdrawn from listing and relisted. After such fee is paid for that fiscal year, such fee shall be payable on or before January 31 of each year. Such fee shall be paid only once for each product for a fiscal year in which the fee is payable.”; and</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>in subparagraph (B), by striking “<quotedText>505(j).</quotedText>” and inserting the following: “505(j), under an abbreviated application filed under section 507 (as in effect on the day before the date of enactment of the Food and Drug Administration Modernization Act of 1997), or under an abbreviated new drug application pursuant to regulations in effect prior to the implementation of the Drug Price Competition and Patent Term Restoration Act of 1984.”.</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Fee Amounts</inline>.—</heading><content>Section 736(b) (21 U.S.C. 379h(b)) is amended to read as follows: <quotedContent><subsection class="indent0 fontsize10"><num value="b">“(b) </num><heading><inline class="smallCaps">Fee Amounts</inline>.—</heading><chapeau>Except as provided in subsections (c), (d), (f), and (g), the fees required under subsection (a) shall be determined and assessed as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">Application and supplement fees</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><heading><inline class="smallCaps">Full fees</inline>.—</heading><content>The application fee under subsection (a)(1)(A)(i) shall be $250,704 in fiscal year 1998, $256,338 in each of fiscal years 1999 and 2000, $267,606 in fiscal year 2001, and $258,451 in fiscal year 2002.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><heading><inline class="smallCaps">Other fees</inline>.—</heading><content>The fee under subsection (a)(1)(A)(ii) shall be $125,352 in fiscal year 1998, $128,169 <page identifier="/us/stat/111/2302">111 STAT. 2302</page>in each of fiscal years 1999 and 2000, $133,803 in fiscal year 2001, and $129,226 in fiscal year 2002.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">Total fee revenues for establishment fees.—</inline></heading><content>The total fee revenues to be collected in establishment fees under subsection (a)(2) shall be $35,600,000 in fiscal year 1998, $36,400,000 in each of fiscal years 1999 and 2000, $38,000,000 in fiscal year 2001, and $36,700,000 in fiscal year 2002.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><heading><inline class="smallCaps">Total fee revenues for product fees</inline>.—</heading><content>The total fee revenues to be collected in product fees under subsection (a)(3) in a fiscal year shall be equal to the total fee revenues collected in establishment fees under subsection (a)(2) in that fiscal year.”.</content></paragraph></subsection></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Increases and Adjustments</inline>.—</heading><chapeau>Section 736(c) (21 U.S.C. 379h(c)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in the subsection heading, by striking “<quotedText>Increases and</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>in paragraph (1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking “<quotedText>(1) Revenue</quotedText>” and all that follows through “increased by the Secretary” and inserting the following: “(1) <inline class="smallCaps">Inflation adjustment</inline>.—The fees and total fee revenues established in subsection (b) shall be adjusted by the Secretary”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>in subparagraph (A), by striking “<quotedText>increase</quotedText>” and inserting “<quotedText>change</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>in subparagraph (B), by striking “<quotedText>increase</quotedText>” and inserting “<quotedText>change</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>by adding at the end the following flush sentence: “The adjustment made each fiscal year by this subsection will be added on a compounded basis to the sum of all adjustments made each fiscal year after fiscal year 1997 under this subsection.”;</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>in paragraph (2), by striking “<quotedText>October 1, 1992,</quotedText>” and all that follows through “such schedule.” and inserting the following: “September 30, 1997, adjust the establishment and product fees described in subsection (b) for the fiscal year in which the adjustment occurs so that the revenues collected from each of the categories of fees described in paragraphs (2) and (3) of subsection (b) shall be set to be equal to the revenues collected from the category of application and supplement fees described in paragraph (1) of subsection (b).”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>in paragraph (3), by striking “<quotedText>paragraph (2)</quotedText>” and inserting “<quotedText>this subsection</quotedText>”.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Fee Waiver or Reduction</inline>.—</heading><chapeau>Section 736(d) (21 U.S.C. 379h(d)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by redesignating paragraphs (1), (2), (3), and (4) as subparagraphs (A), (B), (C), and (D), respectively and indenting appropriately;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking “<quotedText>The Secretary shall grant a</quotedText>” and all that follows through “finds that—” and inserting the following: <quotedContent><paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall grant a waiver from or a reduction of one or more fees assessed under subsection (a) where the Secretary finds that—”;</content></paragraph></quotedContent></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>in subparagraph (C) (as so redesignated in paragraph (1)), by striking “<quotedText>, or</quotedText>” and inserting a comma;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>in subparagraph (D) (as so redesignated in paragraph (1)), by striking the period and inserting “<quotedText>, or</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>by inserting after subparagraph (D) (as so redesignated in paragraph (1)) the following: <page identifier="/us/stat/111/2303">111 STAT. 2303</page> <quotedContent><subparagraph class="indent2 fontsize10"><num value="E">“(E) </num><content>the applicant involved is a small business submitting its first human drug application to the Secretary for review.”; and</content></subparagraph></quotedContent></content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>by striking “<quotedText>In making the finding in paragraph (3),</quotedText>” and all that follows through “standard costs.” and inserting the following: <quotedContent><paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">Use of standard costs</inline>.—</heading><content>In making the finding in paragraph (1)(C), the Secretary may use standard costs.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><heading><inline class="smallCaps">Rules relating to small businesses</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><heading><inline class="smallCaps">Definition</inline>.—</heading><content>In paragraph (1)(E), the term ‘small business’ means an entity that has fewer than 500 employees, including employees of affiliates.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><heading><inline class="smallCaps">Waiver of application fee</inline>.—</heading><chapeau>The Secretary shall waive under paragraph (1)(E) the application fee for the first human drug application that a small business or its affiliate submits to the Secretary for review. After a small business or its affiliate is granted such a waiver, the small business or its affiliate shall pay—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>application fees for all subsequent human drug applications submitted to the Secretary for review in the same manner as an entity that does not qualify as a small business; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>all supplement fees for all supplements to human drug applications submitted to the Secretary for review in the same manner as an entity that does not qualify as a small business.”.</content></clause></subparagraph></paragraph></quotedContent></content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><heading><inline class="smallCaps">Assessment of Fees</inline>.—</heading><chapeau>Section 736(f)(1) (21 U.S.C. 379h(f)(1)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking “<quotedText>fiscal year 1993</quotedText>” and inserting “<quotedText>fiscal year 1997</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking “<quotedText>fiscal year 1992</quotedText>” and inserting “<quotedText>fiscal year 1997 (excluding the amount of fees appropriated for such fiscal year)</quotedText>”.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><heading><inline class="smallCaps">Crediting and Availability of Fees</inline>.—</heading><chapeau>Section 736(g) (21 U.S.C. 379h(g)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in paragraph (1), by adding at the end the following: “<quotedText>Such sums as may be necessary may be transferred from the Food and Drug Administration salaries and expenses appropriation account without fiscal year limitation to such appropriation account for salaries and expenses with such fiscal year limitation. The sums transferred shall be available solely for the process for the review of human drug applications.</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>in paragraph (2)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>in subparagraph (A), by striking “<quotedText>Acts</quotedText>” and inserting “<quotedText>Acts, or otherwise made available for obligation,</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>in subparagraph (B), by striking “<quotedText>over such costs for fiscal year 1992</quotedText>” and inserting “<quotedText>over such costs, excluding costs paid from fees collected under this section, for fiscal year 1997</quotedText>”; and</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by striking paragraph (3) and inserting the following: <quotedContent><paragraph class="indent1 fontsize10"><num value="3">“(3) </num><heading><inline class="smallCaps">Authorization of appropriations</inline>.—</heading><chapeau>There are authorized to be appropriated for fees under this section—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>$106,800,000 for fiscal year 1998;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>$109,200,000 for fiscal year 1999;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>$109,200,000 for fiscal year 2000;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>$114,000,000 for fiscal year 2001; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E) </num><content>$110,100,000 for fiscal year 2002,</content></subparagraph> <page identifier="/us/stat/111/2304">111 STAT. 2304</page> <continuation class="indent0 fontsize10">as adjusted to reflect adjustments in the total fee revenues made under this section and changes in the total amounts collected by application, supplement, establishment, and product fees.</continuation></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><heading><inline class="smallCaps">Offset</inline>.—</heading><content>Any amount of fees collected for a fiscal year under this section that exceeds the amount of fees specified in appropriation Acts for such fiscal year shall be credited to the appropriation account of the Food and Drug Administration as provided in paragraph (1), and shall be subtracted from the amount of tees that would otherwise be authorized to be collected under this section pursuant to appropriation Acts for a subsequent fiscal year.”.</content></paragraph></quotedContent></content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><heading><inline class="smallCaps">Requirement for Written Requests for Waivers, Reductions, and Refunds.</inline>—</heading><chapeau>Section 736 (21 U.S.C. 379h) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by redesignating subsection (i) as subsection (j); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting after subsection (h) the following: <quotedContent><subsection class="indent0 fontsize10"><num value="i">“(i) </num><heading><inline class="smallCaps">Written Requests for Waivers, Reductions, and Refunds</inline>.—</heading><content>To qualify for consideration for a waiver or reduction under subsection (d), or for a refund of any fee collected in accordance with subsection (a), a person shall submit to the Secretary a written request for such waiver, reduction, or refund not later than 180 days after such fee is due.”.</content></subsection></quotedContent></content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s379h">21 USC 379h</ref> note.</p></sidenote><heading><inline class="smallCaps">Special Rule for Waivers and Refunds.—</inline></heading><content>Any requests for waivers or refunds for fees assessed under section 736 of the Federal Food, Drug, and Cosmetic Act (42 U.S.C. 379h) prior to the date of enactment of this Act shall be submitted in writing to the Secretary of Health and Human Services within 1 year after the date of enactment of this Act. Any requests for waivers or refunds pertaining to a fee for a human drug application or supplement accepted for filing prior to October 1, 1997 or to a product or establishment fee required by such Act for a fiscal year prior to fiscal year 1998, shall be evaluated according to the terms of the Prescription Drug User Fee Act of 1992 (as in effect on September 30, 1997) and part 2 of subchapter C of chapter VII of the Federal Food, Drug, and Cosmetic Act (as in effect on September 30, 1997). The term “person” in such Acts shall continue to include an affiliate thereof.</content></subsection></section> <section><num value="104">SEC. 104. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s379g">21 USC 379g</ref> note.</p></sidenote><heading>ANNUAL REPORTS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Performance Report.</inline>—</heading><content>Beginning with fiscal year 1998, not later than 60 days after the end of each fiscal year during which fees are collected under part 2 of subchapter C of chapter VII of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 379g et seq.), the Secretary of Health and Human Services shall prepare and submit to the Committee on Commerce of the House of Representatives and the Committee on Labor and Human Resources of the Senate a report concerning the progress of the Food and Drug Administration in achieving the goals identified in the letters described in section 101(4) during such fiscal year and the future plans of the Food and Drug Administration for meeting the goals.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Fiscal Report</inline>.—</heading><content>Beginning with fiscal year 1998, not later than 120 days after the end of each fiscal year during which fees are collected under the part described in subsection (a), the Secretary of Health and Human Services shall prepare and submit to the Committee on Commerce of the House of Representatives and the Committee on Labor and Human Resources of the Senate <page identifier="/us/stat/111/2305">111 STAT. 2305</page>a report on the implementation of the authority for such fees during such fiscal year and the use, by the Food and Drug Administration, of the fees collected during such fiscal year for which the report is made.</content></subsection></section> <section><num value="105">SEC. 105. </num><heading>SAVINGS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s379g">21 USC 379g</ref> note.</p></sidenote> <content>Notwithstanding section 105 of the Prescription Drug User Fee Act of 1992, the Secretary shall retain the authority to assess and collect any fee required by part 2 of subchapter C of chapter VII of the Federal Food, Drug, and Cosmetic Act for a human drug application or supplement accepted for filing prior to October 1, 1997, and to assess and collect any product or establishment fee required by such Act for a fiscal year prior to fiscal year 1998.</content></section> <section><num value="106">SEC. 106. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s379g">21 USC 379g</ref> note.</p></sidenote><heading>EFFECTIVE DATE.</heading> <content>The amendments made by this subtitle shall take effect October 1, 1997.</content></section> <section><num value="107">SEC. 107. </num><heading>TERMINATION OF EFFECTIVENESS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s379g">21 USC 379g</ref> note.</p></sidenote> <content>The amendments made by sections 102 and 103 cease to be effective October 1, 2002, and section 104 ceases to be effective 120 days after such date.</content></section> </subtitle> <subtitle> <num value="B">Subtitle B—</num><heading>Other Improvements</heading> <section><num value="111">SEC. 111. </num><heading>PEDIATRIC STUDIES OF DRUGS.</heading> <content>Chapter V (21 U.S.C. 351 et seq.) is amended by inserting after section 505 the following: <quotedContent> <section><num value="505A">“SEC. 505A </num><heading>PEDIATRIC STUDIES OF DRUGS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s355a">21 USC 355a</ref>.</p></sidenote> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><heading><inline class="smallCaps">Market Exclusivity for New Drugs.—</inline></heading><chapeau>If, prior to approval of an application that is submitted under section 505(b)(1), the Secretary determines that information relating to the use of a new drug in the pediatric population may produce health benefits in that population, the Secretary makes a written request for pediatric studies (which shall include a timeframe for completing such studies), and such studies are completed within any such timeframe and the reports thereof submitted in accordance with subsection (d)(2) or accepted in accordance with subsection (d)(3)—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num><subparagraph class="inline"><num value="A">(A)</num><clause class="inline"><num value="i">(i) </num><content>the period referred to in subsection (c)(3)(D)(ii) of section 505, and in subsection (j)(4)(D)(ii) of such section, is deemed to be five years and six months rather than five years, and the references in subsections (c)(3)(D)(ii) and (j)(4)(D)(ii) of such section to four years, to forty-eight months, and to seven and one-half years are deemed to be four and one-half years, fifty-four months, and eight years, respectively; or</content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii) </num><content>the period referred to in clauses (iii) and (iv) of subsection (c)(3)(D) of such section, and in clauses (iii) and (iv) of subsection (j)(4)(D) of such section, is deemed to be three years and six months rather than three years; and</content></clause></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><content>if the drug is designated under section 526 for a rare disease or condition, the period referred to in section 527(a) is deemed to be seven years and six months rather than seven years; and</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num><subparagraph class="inline"><num value="A">(A) </num><chapeau>if the drug is the subject of—</chapeau> <page identifier="/us/stat/111/2306">111 STAT. 2306</page> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>a listed patent for which a certification has been submitted under subsection (b)(2)(A)(ii) or (j)(2)(A)(vii)(II) of section 505 and for which pediatric studies were submitted prior to the expiration of the patent (including any patent extensions); or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>a listed patent for which a certification has been submitted under subsections (b)(2)(A)(iii) or (j)(2)(A)(vii)(III) of section 505,</content></clause> <continuation class="indent0 fontsize10">the period during which an application may not be approved under section 505(c)(3) or section 505(j)(4)(B) shall be extended by a period of six months after the date the patent expires (including any patent extensions); or</continuation></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><content>if the drug is the subject of a listed patent for which a certification has been submitted under subsection (b)(2)(A)(iv) or (j)(2)(A)(vii)(IV) of section 505, and in the patent infringement litigation resulting from the certification the court determines that the patent is valid and would be infringed, the period during which an application may not be approved under section 505(c)(3) or section 505(j)(4)(B) shall be extended by a period of six months after the date the patent expires (including any patent extensions).</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><heading><inline class="smallCaps">Secretary To Develop List of Drugs for Which Additional Pediatric Information May Be Beneficial</inline>.—</heading><content>Not later than 180 days after the date of enactment of the Food and Drug Administration Modernization Act of 1997, the Secretary, after consultation with experts in pediatric research shall develop, prioritize, and publish an initial list of approved drugs for which additional pediatric information may produce health benefits in the pediatric population. The Secretary snail annually update the list.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><heading><inline class="smallCaps">Market Exclusivity for Already-Marketed Drugs</inline>.—</heading><chapeau>If the Secretary makes a written request to the holder of an approved application under section 505(b)(1) for pediatric studies (which shall include a timeframe for completing such studies) concerning a drug identified in the list described in subsection (b), the holder agrees to the request, the studies are completed within any such timeframe, and the reports thereof are submitted in accordance with subsection (d)(2) or accepted in accordance with subsection (d)(3)—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num><subparagraph class="inline"><num value="A">(A)</num><clause class="inline"><num value="i">(i) </num><content>the period referred to in subsection (c)(3)(D)(ii) of section 505, and in subsection (j)(4)(D)(ii) of such section, is deemed to be five years and six months rather than five years, and the references in subsections (c)(3)(D)(ii) and (j)(4)(D)(ii) of such section to four years, to forty-eight months, and to seven and one-half years are deemed to be four and one-half years, fifty-four months, and eight years, respectively; or</content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii) </num><content>the period referred to in clauses (iii) and (iv) of subsection (c)(3)(D) of such section, and in clauses (iii) and (iv) of subsection (j)(4)(D) of such section, is deemed to be three years and six months rather than three years; and</content></clause></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><content>if the drug is designated under section 526 for a rare disease or condition, the period referred to in section 527(a) is deemed to be seven years and six months rather than seven years; and</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num><subparagraph class="inline"><num value="A">(A) </num><chapeau>if the drug is the subject of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>a listed patent for which a certification has been submitted under subsection (b)(2)(A)(ii) or (j)(2)(A)(vii)(II) <page identifier="/us/stat/111/2307">111 STAT. 2307</page>of section 505 and for which pediatric studies were submitted prior to the expiration of the patent (including any patent extensions); or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>a listed patent for which a certification has been submitted under subsection (b)(2)(A)(iii) or (j)(2)(A)(vii)(III) of section 505,</content></clause> <continuation class="indent0 fontsize10">the period during which an application may not be approved under section 505(c)(3) or section 505(j)(4)(B) shall be extended by a period of six months after the date the patent expires (including any patent extensions); or</continuation></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><content>if the drug is the subject of a listed patent for which a certification has been submitted under subsection (b)(2)(A)(iv) or (j)(2)(A)(vii)(IV) of section 505, and in the patent infringement litigation resulting from the certification the court determines that the patent is valid and would be infringed, the period during which an application may not be approved under section 505(c)(3) or section 505(j)(4)(B) shall be extended by a period of six months after the date the patent expires (including any patent extensions).</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><heading><inline class="smallCaps">Conduct of Pediatric Studies</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">Agreement for studies.</inline>—</heading><chapeau>The Secretary may, pursuant to a written request from the Secretary under subsection (a) or (c), after consultation with—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>the sponsor of an application for an investigational new drug under section 505(i);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>the sponsor of an application for a new drug under section 505(b)(1); or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>the holder of an approved application for a drug under section 505(b)(1),</content></subparagraph> <continuation class="indent0 fontsize10">agree with the sponsor or holder for the conduct of pediatric studies for such drug. Such agreement shall be in writing and shall include a timeframe for such studies.</continuation></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">Written protocols to meet the studies requirement</inline>.—</heading><content>If the sponsor or holder and the Secretary agree upon written protocols for the studies, the studies requirement of subsection (a) or (c) is satisfied upon the completion of the studies and submission of the reports thereof in accordance with the original written request and the written agreement referred to in paragraph (1). Not later than 60 days after the submission of the report of the studies, the Secretary shall determine if such studies were or were not conducted in accordance with the original written request and the written agreement and reported in accordance with the requirements of the Secretary for filing and so notify the sponsor or holder.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><heading><inline class="smallCaps">Other methods to meet the studies requirement</inline>.—</heading><content>If the sponsor or holder and the Secretary have not agreed in writing on the protocols for the studies, the studies requirement of subsection (a) or (c) is satisfied when such studies have been completed and the reports accepted by the Secretary. Not later than 90 days after the submission of the reports of the studies, the Secretary shall accept or reject such reports and so notify the sponsor or holder. The Secretary’s only responsibility in accepting or rejecting the reports shall be to determine, within the 90 days, whether the studies fairly respond to the written request, have been conducted in accordance with commonly accepted scientific principles and protocols, and <page identifier="/us/stat/111/2308">111 STAT. 2308</page>have been reported in accordance with the requirements of the Secretary for filing.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><heading><inline class="smallCaps">Delay of Effective Date for Certain Application</inline>.—</heading><content>If the Secretary determines that the acceptance or approval of an application under section 505(b)(2) or 505(j) for a new drug may occur after submission of reports of pediatric studies under this section, which were submitted prior to the expiration of the patent (including any patent extension) or the applicable period under clauses (ii) through (iv) of section 505(c)(3)(D) or clauses (ii) through (iv) of section 505(j)(4)(D), but before the Secretary has determined whether the requirements of subsection (d) have been satisfied, the Secretary shall delay the acceptance or approval under section 505(b)(2) or 505(j) until the determination under subsection (d) is made, but any such delay shall not exceed 90 days. In the event that requirements of this section are satisfied, the applicable six-month period under subsection (a) or (c) shall be deemed to have been running during the period of delay.</content></subsection> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><heading><inline class="smallCaps">Notice of Determinations on Studies Requirement</inline>.—</heading><content>The Secretary shall publish a notice of any determination that the requirements of subsection (d) have been met and that submissions and approvals under subsection (b)(2) or (j) of section 505 for a drug will be subject to the provisions of this section.</content></subsection> <subsection class="indent0 fontsize10"><num value="g">“(g) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><content>As used in this section, the term ‘pediatric studies’ or ‘studies’ means at least one clinical investigation (that, at the Secretary’s discretion, may include pharmacokinetic studies) in pediatric age groups in which a drug is anticipated to be used.</content></subsection> <subsection class="indent0 fontsize10"><num value="h">“(h) </num><heading><inline class="smallCaps">Limitations</inline>.—</heading><chapeau>A drug to which the six-month period under subsection (a) or (b) has already been applied—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>may receive an additional six-month period under subsection (c)(1)(A)(ii) for a supplemental application if all other requirements under this section are satisfied, except that such a drug may not receive any additional such period under subsection (c)(2); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>may not receive any additional such period under subsection (c)(1)(B).</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="i">“(i) </num><heading><inline class="smallCaps">Relationship to Regulations</inline>.—</heading><content>Notwithstanding any other provision of law, if any pediatric study is required pursuant to regulations promulgated by the Secretary and such study meets the completeness, timeliness, and other requirements of this section, such study shall be deemed to satisfy the requirement for market exclusivity pursuant to this section.</content></subsection> <subsection class="indent0 fontsize10"><num value="j">“(j) </num><heading><inline class="smallCaps">Sunset</inline>.—</heading><chapeau>A drug may not receive any six-month period under subsection (a) or (c) unless the application for the drug under section 505(b)(1) is submitted on or before January 1, 2002. After January 1, 2002, a drug shall receive a six-month period under subsection (c) if—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>the drug was in commercial distribution as of the date of enactment of the Food and Drug Administration Modernization Act of 1997;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>the drug was included by the Secretary on the list under subsection (b) as of January 1, 2002;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>the Secretary determines that there is a continuing need for information relating to the use of the drug in the pediatric population and that the drug may provide health benefits in that population; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>all requirements of this section are met.</content></paragraph></subsection> <page identifier="/us/stat/111/2309">111 STAT. 2309</page> <subsection class="indent0 fontsize10"><num value="k">“(k) </num><heading><inline class="smallCaps">Report</inline>.—</heading><chapeau>The Secretary shall conduct a study and report to Congress not later than January 1, 2001, based on the experience under the program established under this section. The study and report shall examine all relevant issues, including—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>the effectiveness of the program in improving information about important pediatric uses for approved drugs;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>the adequacy of the incentive provided under this section;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>the economic impact of the program on taxpayers and consumers, including the impact of the lack of lower cost generic drugs on patients, including on lower income patients; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>any suggestions for modification that the Secretary determines to be appropriate.”.</content></paragraph></subsection></section></quotedContent></content></section> <section><num value="112">SEC. 112. </num><heading>EXPEDITING STUDY AND APPROVAL OF FAST TRACK DRUGS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>Chanter V (21 U.S.C. 351 et seq.), as amended by section 125, is amended by inserting before section 508 the following: <quotedContent> <section><num value="506">“SEC. 506. </num><heading>FAST TRACK PRODUCTS.</heading> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s356">21 USC 356</ref>.</p></sidenote> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><heading><inline class="smallCaps">Designation of Drug as a Fast Track Product.—</inline></heading> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall, at the request of the sponsor of a new drug, facilitate the development and expedite the review of such drug if it is intended for the treatment of a serious or life-threatening condition and it demonstrates the potential to address unmet medical needs for such a condition. (In this section, such a drug is referred to as a ‘fast track product’.)</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">Request for designation.</inline>—</heading><content>The sponsor of a new drug may request the Secretary to designate the drug as a fast track product. A request for the designation may be made concurrently with, or at any time after, submission of an application for the investigation of the drug under section 505(i) or section 351(a)(3) of the Public Health Service Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><heading><inline class="smallCaps">Designation</inline>.—</heading><content>Within 60 calendar days after the receipt of a request under paragraph (2), the Secretary shall determine whether the drug that is the subject of the request meets the criteria described in paragraph (1). If the Secretary finds that the drug meets the criteria, the Secretary shall designate the drug as a fast track product and shall take such actions as are appropriate to expedite the development and review of the application for approval of such product.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><heading><inline class="smallCaps">Approval of Application for a Fast Track Product</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary may approve an application for approval of a fast track product under section 505(c) or section 351 of the Public Health Service Act upon a determination that the product has an effect on a clinical endpoint or on a surrogate endpoint that is reasonably likely to predict clinical benefit.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">Limitation</inline>.—</heading><chapeau>Approval of a fast track product under this subsection may be subject to the requirements—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>that the sponsor conduct appropriate post-approval studies to validate the surrogate endpoint or otherwise confirm the effect on the clinical endpoint; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>that the sponsor submit copies of all promotional materials related to the fast track product during the preapproval review period and, following approval and for such period thereafter as the Secretary determines to be <page identifier="/us/stat/111/2310">111 STAT. 2310</page>appropriate, at least 30 days prior to dissemination of the materials.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><heading><inline class="smallCaps">Expedited withdrawal of approval</inline>.—</heading><chapeau>The Secretary may withdraw approval of a fast track product using expedited procedures (as prescribed by the Secretary in regulations which shall include an opportunity for an informal hearing) if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>the sponsor fails to conduct any required post-approval study of the fast track drug with due diligence;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>a post-approval study of the fast track product fails to verify clinical benefit of the product;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>other evidence demonstrates that the fast track product is not safe or effective under the conditions of use; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>the sponsor disseminates false or misleading promotional materials with respect to the product.</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><heading><inline class="smallCaps">Review of Incomplete Applications for Approval of a Fast Track Product</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>If the Secretary determines, after preliminary evaluation of clinical data submitted by the sponsor, that a fast track product may be effective, the Secretary shall evaluate for filing, and may commence review of portions of, an application for the approval of the product before the sponsor submits a complete application. The Secretary shall commence such review only if the applicant—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>provides a schedule for submission of information necessary to make the application complete; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>pays any fee that may be required under section 736.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">Exception</inline>.—</heading><content>Any time period for review of human drug applications that has been agreed to by the Secretary and that has been set forth in goals identified in letters of the Secretary (relating to the use of fees collected under section 736 to expedite the drug development process and the review of human drug applications) shall not apply to an application submitted under paragraph (1) until the date on which the application is complete.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><heading><inline class="smallCaps">Awareness Efforts</inline>.—</heading><chapeau>The Secretary shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>develop and disseminate to physicians, patient organizations, pharmaceutical and biotechnology companies, and other appropriate persons a description of the provisions of this section applicable to fast track products; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>establish a program to encourage the development of surrogate endpoints that are reasonably likely to predict clinical benefit for serious or life-threatening conditions for which there exist significant unmet medical needs.”.</content></paragraph></subsection></section></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s356">21 USC 356</ref> note.</p></sidenote><heading><inline class="smallCaps">Guidance</inline>.—</heading><content>Within 1 year after the date of enactment of this Act, the Secretary of Health and Human Services shall issue guidance for fast track products (as defined in section 506(a)(1) of the Federal Food, Drug, and Cosmetic Act) that describes the policies and procedures that pertain to section 506 of such Act.</content></subsection></section> <section><num value="113">SEC. 113. </num><heading>INFORMATION PROGRAM ON CLINICAL TRIALS FOR SERIOUS OR LIFE-THREATENING DISEASES.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 402 of the Public Health Service Act (42 U.S.C. 282) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by redesignating subsections (j) and (k) as subsections (k) and (1), respectively; and</content></paragraph> <page identifier="/us/stat/111/2311">111 STAT. 2311</page> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting after subsection (i) the following: Establishment. <quotedContent><subsection class="indent0 fontsize10"><num value="j">“(j)</num><paragraph class="inline"><num value="1">(1)</num><subparagraph class="inline"><num value="A">(A) </num><content>The Secretary, acting through the Director of NIH, shall establish, maintain, and operate a data bank of information on clinical trials for drugs for serious or life-threatening diseases and conditions (in this subsection referred to as the ‘data bank’). The activities of the data bank shall be integrated and coordinated with related activities of other agencies of the Department of Health and Human Services, and to the extent practicable, coordinated with other data banks containing similar information.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><content>The Secretary shall establish the data bank after consultation with the Commissioner of Food and Drugs, the directors of the appropriate agencies of the National Institutes of Health (including the National Library of Medicine), and the Director of the Centers for Disease Control and Prevention.</content></subparagraph></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>In carrying out paragraph (1), the Secretary shall collect, catalog, store, and disseminate the information described in such paragraph. The Secretary shall disseminate such information through information systems, which shall include toll-free telephone communications, available to individuals with serious or life-threatening diseases and conditions, to other members of the public, to health care providers, and to researchers.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><chapeau>The data bank shall include the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>A registry of clinical trials (whether federally or privately funded) of experimental treatments for serious or life-threatening diseases and conditions under regulations promulgated pursuant to section 505(i) of the Federal Food, Drug, and Cosmetic Act, which provides a description of the purpose of each experimental drug, either with the consent of the protocol sponsor, or when a trial to test effectiveness begins. Information provided shall consist of eligibility criteria for participation in the clinical trials, a description of the location of trial sites, and a point of contact for those wanting to enroll in the trial, and shall be in a form that can be readily understood by members of the public. Such information shall be forwarded to the data bank by the sponsor of the trial not later than 21 days after the approval of the protocol.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><chapeau>Information pertaining to experimental treatments for serious or life-threatening diseases and conditions that may be available—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>under a treatment investigational new drug application that has been submitted to the Secretary under section 561(c) of the Federal Food, Drug, and Cosmetic Act; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>as a Group C cancer drug (as defined by the National Cancer Institute).</content></clause> <continuation class="indent0 fontsize10">The data bank may also include information pertaining to the results of clinical trials of such treatments, with the consent of the sponsor, including information concerning potential toxicities or adverse effects associated with the use or administration of such experimental treatments.</continuation></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>The data bank shall not include information relating to an investigation if the sponsor has provided a detailed certification to the Secretary that disclosure of such information would substantially interfere with the timely enrollment of subjects in the investigation, unless the Secretary, after the receipt of the certification, provides the sponsor with a detailed written determination that <page identifier="/us/stat/111/2312">111 STAT. 2312</page>such disclosure would not substantially interfere with such enrollment.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Appropriation authorization.</p></sidenote><content>For the purpose of carrying out this subsection, there are authorized to be appropriated such sums as may be necessary. Fees collected under section 736 of the Federal Food, Drug, and Cosmetic Act shall not be used in carrying out this subsection.”.</content></paragraph></subsection></quotedContent></content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s282">42 USC 282</ref> note.</p></sidenote><heading><inline class="smallCaps">Collaboration and Report.—</inline></heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary of Health and Human Services, the Director of the National Institutes of Health, and the Commissioner of Food and Drugs shall collaborate to determine the feasibility of including device investigations within the scope of the data bank under section 402(j) of the Public Health Service Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Report</inline>.—</heading><chapeau>Not later than two years after the date of enactment of this section, the Secretary of Health and Human Services shall prepare and submit to the Committee on Labor and Human Resources of the Senate and the Committee on Commerce of the House of Representatives a report—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>of the public health need, if any, for inclusion of device investigations within the scope of the data bank under section 402(j) of the Public Health Service Act;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>on the adverse impact, if any, on device innovation and research in the United States if information relating to such device investigations is required to be publicly disclosed; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>on such other issues relating to such section 402(j) as the Secretary determines to be appropriate.</content></subparagraph></paragraph></subsection></section> <section><num value="114">SEC. 114. </num><heading>HEALTH CARE ECONOMIC INFORMATION.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 502(a) (21 U.S.C. 352(a)) is amended by adding at the end the following: “Health care economic information provided to a formulary committee, or other similar entity, in the course of the committee or the entity carrying out its responsibilities for the selection of drugs for managed care or other similar organizations, shall not be considered to be false or misleading under this paragraph if the health care economic information directly relates to an indication approved under section 505 or under section 351(a) of the Public Health Service Act for such drug and is based on competent and reliable scientific evidence. The requirements set forth in section 505(a) or in section 351(a) of the Public Health Service Act shall not apply to health care economic information provided to such a committee or entity in accordance with this paragraph. Information that is relevant to the substantiation of the health care economic information presented pursuant to this paragraph shall be made available to the Secretary upon request. In this paragraph, the term ‘health care economic information’ means any analysis that identifies, measures, or compares the economic consequences, including the costs of the represented health outcomes, of the use of a drug to the use of another drug, to another health care intervention, or to no intervention.”.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s352">21 USC 352</ref> note.</p></sidenote><heading><inline class="smallCaps">Study and Report</inline>.—</heading><content>The Comptroller General of the United States shall conduct a study of the implementation of the provisions added by the amendment made by subsection (a). Not later than 4 years and 6 months after the date of enactment of this Act, the Comptroller General of the United States shall prepare and submit to Congress a report containing the findings of the study.</content></subsection></section> <page identifier="/us/stat/111/2313">111 STAT. 2313</page> <section><num value="115">SEC. 115. </num><heading>CLINICAL INVESTIGATIONS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Clarification of the Number of Required Clinical Investigations for Approval</inline>.—</heading><content>Section 505(d) (21 U.S.C. 355(d)) is amended by adding at the end the following: “<quotedText>If the Secretary determines, based on relevant science, that data from one adequate and well-controlled clinical investigation and confirmatory evidence (obtained prior to or after such investigation) are sufficient to establish effectiveness, the Secretary may consider such data and evidence to constitute substantial evidence for purposes of the preceding sentence.</quotedText>”.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Women and Minorities</inline>.—</heading><content>Section 505(b)(1) (21 U.S.C. 355(b)(1)) is amended by adding at the end the following: “<quotedText>The Secretary shall, in consultation with the Director of the National Institutes of Health and with representatives of the drug manufacturing industry, review and develop guidance, as appropriate, on the inclusion of women and minorities in clinical trials required by clause (A).</quotedText>”.</content></subsection></section> <section><num value="116">SEC. 116. </num><heading>MANUFACTURING CHANGES FOR DRUGS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>Chapter V, as amended by section 112, is amended by inserting after section 506 the following section: <quotedContent><section><num value="506A">“SEC. 506A. </num><heading>MANUFACTURING CHANGES.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s356a">21 USC 356a</ref>.</p></sidenote> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><heading><inline class="smallCaps">In General.</inline>—</heading><chapeau>With respect to a drug for which there is in effect an approved application under section 505 or 512 or a license under section 351 of the Public Health Service Act, a change from the manufacturing process approved pursuant to such application or license may be made, and the drug as made with the change may be distributed, if—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>the holder of the approved application or license (referred to in this section as a ‘holder’) has validated the effects of the change in accordance with subsection (b); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num><subparagraph class="inline"><num value="A">(A) </num><content>in the case of a major manufacturing change, the holder has complied with the requirements of subsection (c); or</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><content>in the case of a change that is not a major manufacturing change, the holder complies with the applicable requirements of subsection (d).</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><heading><inline class="smallCaps">Validation of Effects of Changes</inline>.—</heading><content>For purposes of subsection (a)(1), a drug made with a manufacturing change (whether a major manufacturing change or otherwise) may be distributed only if, before distribution of the drug as so made, the holder involved validates the effects of the change on the identity, strength, quality, purity, and potency of the drug as the identity, strength, quality, purity, and potency may relate to the safety or effectiveness of the drug.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><heading><inline class="smallCaps">Major Manufacturing Changes</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">Requirement of supplemental application</inline>.—</heading><content>For purposes of subsection (a)(2)(A), a drug made with a major manufacturing change may be distributed only if, before the distribution of the drug as so made, the holder involved submits to the Secretary a supplemental application for such change and the Secretary approves the application. The application shall contain such information as the Secretary determines to be appropriate, and shall include the information developed under subsection (b) by the holder in validating the effects of the change.</content></paragraph> <page identifier="/us/stat/111/2314">111 STAT. 2314</page> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">Changes qualifying as major changes</inline>.—</heading><chapeau>For purposes of subsection (a)(2)(A), a major manufacturing change is a manufacturing change that is determined by the Secretary to have substantial potential to adversely affect the identity, strength, quality, purity, or potency of the drug as they may relate to the safety or effectiveness of a drug. Such a change includes a change that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>is made in the qualitative or quantitative formulation of the drug involved or in the specifications in the approved application or license referred to in subsection (a) for the drug (unless exempted by the Secretary by regulation or guidance from the requirements of this subsection);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>is determined by the Secretary by regulation or guidance to require completion of an appropriate clinical study demonstrating equivalence of the drug to the drug as manufactured without the change; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>is another type of change determined by the Secretary by regulation or guidance to have a substantial potential to adversely affect the safety or effectiveness of the drug.</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><heading><inline class="smallCaps">Other Manufacturing Changes</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of subsection (a)(2)(B), the Secretary may regulate drugs made with manufacturing changes that are not major manufacturing changes as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>The Secretary may in accordance with paragraph (2) authorize holders to distribute such drugs without submitting a supplemental application for such changes.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>The Secretary may in accordance with paragraph (3) require that, prior to the distribution of such drugs, holders submit to the Secretary supplemental applications for such changes.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>The Secretary may establish categories of such changes and designate categories to which subparagraph (A) applies and categories to which subparagraph (B) applies.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">Changes not requiring supplemental application.</inline>—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><heading><inline class="smallCaps">Submission of report</inline>.—</heading><content>A holder making a manufacturing change to which paragraph (1)(A) applies shall submit to the Secretary a report on the change, which shall contain such information as the Secretary determines to be appropriate, and which shall include the information developed under subsection (b) by the holder in validating the effects of the change. The report shall be submitted by such date as the Secretary may specify.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><heading><inline class="smallCaps">Authority regarding annual reports.</inline>—</heading><content>In the case of a holder that during a single year makes more than one manufacturing change to which paragraph (1)(A) applies, the Secretary may in carrying out subparagraph (A) authorize the holder to comply with such subparagraph by submitting a single report for the year that provides the information required in such subparagraph for all the changes made by the holder during the year.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><heading><inline class="smallCaps">Changes requiring supplemental application.</inline>—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><heading><inline class="smallCaps">Submission of supplemental application</inline>.—</heading><content>The supplemental application required under paragraph (1)(B) <page identifier="/us/stat/111/2315">111 STAT. 2315</page>for a manufacturing change shall contain such information as the Secretary determines to be appropriate, which shall include the information developed under subsection (b) by the holder in validating the effects of the change.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><heading><inline class="smallCaps">Authority for distribution</inline>.—</heading><chapeau>In the case of a manufacturing change to which paragraph (1)(B) applies:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>The holder involved may commence distribution of the drug involved 30 days after the Secretary receives the supplemental application under such paragraph, unless the Secretary notifies the holder within such 30-day period that prior approval of the application is required before distribution may be commenced.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>The Secretary may designate a category of such changes for the purpose of providing that, in the case of a change that is in such category, the holder involved may commence distribution of the drug involved upon the receipt by the Secretary of a supplemental application for the change.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><content>If the Secretary disapproves the supplemental application, the Secretary may order the manufacturer to cease the distribution of the drugs that have been made with the manufacturing change.”.</content></clause></subparagraph></paragraph></subsection></section></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Transition Rule</inline>.—</heading><content>The amendment made by subsection <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s356a">21 USC 356a</ref> note.</p></sidenote>(a) takes effect upon the effective date of regulations promulgated by the Secretary of Health and Human Services to implement such amendment, or upon the expiration of the 24-month period beginning on the date of the enactment of this Act, whichever occurs first.</content></subsection></section> <section><num value="117">SEC. 117. </num><heading>STREAMLINING CLINICAL RESEARCH ON DRUGS.</heading> <chapeau>Section 505(i) (21 U.S.C. 355(D) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by redesignating paragraphs (1) through (3) as subparagraphs (A) through (C), respectively;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting “<quotedText>(1)</quotedText>” after “(i)”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by striking the last two sentences; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>by inserting after paragraph (1) (as designated by paragraph (2) of this section) the following new paragraphs: <quotedContent><paragraph class="indent1 fontsize10"><num value="2">“(2) </num><chapeau>Subject to paragraph (3), a clinical investigation of a new drug may begin 30 days after the Secretary has received from the manufacturer or sponsor of the investigation a submission containing such information about the drug and the clinical investigation, including—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>information on design of the investigation and adequate reports of basic information, certified by the applicant to be accurate reports, necessary to assess the safety of the drug for use in clinical investigation; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>adequate information on the chemistry and manufacturing of the drug, controls available for the drug, and primary data tabulations from animal or human studies.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num><subparagraph class="inline"><num value="A">(A) </num><content>At any time, the Secretary may prohibit the sponsor of an investigation from conducting the investigation (referred to in this paragraph as a ‘clinical hold’) if the Secretary makes a determination described in subparagraph (B). The Secretary shall specify the basis for the clinical hold, including the specific information available to the Secretary which served as the basis for such clinical hold, and confirm such determination in writing.</content></subparagraph> <page identifier="/us/stat/111/2316">111 STAT. 2316</page> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><chapeau>For purposes of subparagraph (A), a determination described in this subparagraph with respect to a clinical hold is that—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>the drug involved represents an unreasonable risk to the safety of the persons who are the subjects of the clinical investigation, taking into account the qualifications of the clinical investigators, information about the drug, the design of the clinical investigation, the condition for which the drug is to be investigated, and the health status of the subjects involved; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>the clinical hold should be issued for such other reasons as the Secretary may by regulation establish (including reasons established by regulation before the date of the enactment of the Food and Drug Administration Modernization Act of 1997).</content></clause></subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">“(C) </num><content>Any written request to the Secretary from the sponsor of an investigation that a clinical hold be removed shall receive a decision, in writing and specifying the reasons therefor, within 30 days after receipt of such request. Any such request shall include sufficient information to support the removal of such clinical hold.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>Regulations under paragraph (1) shall provide that such exemption shall be conditioned upon the manufacturer, or the sponsor of the investigation, requiring that experts using such drugs for investigational purposes certify to such manufacturer or sponsor that they will inform any human beings to whom such drugs, or any controls used in connection therewith, are being administered, or their representatives, that such drugs are being used for investigational purposes and will obtain the consent of such human beings or their representatives, except where it is not feasible or it is contrary to the best interests of such human beings. Nothing in this subsection shall be construed to require any clinical investigator to submit directly to the Secretary reports on the investigational use of drugs”.</content></paragraph></quotedContent></content></paragraph></section> <section><num value="118">SEC. 118. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s355">21 USC 355</ref> note.</p></sidenote><heading>DATA REQUIREMENTS FOR DRUGS AND BIOLOGICS.</heading> <content>Within 12 months after the date of enactment of this Act, the Secretary of Health and Human Services, acting through the Commissioner of Food and Drugs, shall issue guidance that describes when abbreviated study reports may be submitted, in lieu of full reports, with a new drug application under section 505(b) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355(b)) and with a biologics license application under section 351 of the Public Health Service Act (42 U.S.C. 262) for certain types of studies. Such guidance shall describe the kinds of studies for which abbreviated reports are appropriate and the appropriate abbreviated report formats.</content></section> <section><num value="119">SEC. 119. </num><heading>CONTENT AND REVIEW OF APPLICATIONS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Section 505(b).</inline>—</heading><content>Section 505(b) (21 U.S.C. 355(b)) is amended by adding at the end the following: <quotedContent><paragraph class="indent1 fontsize10"><num value="4">“(4)</num><subparagraph class="inline"><num value="A">(A) </num><content>The Secretary shall issue guidance for the individuals who review applications submitted under paragraph (1) or under section 351 of the Public Health Service Act, which shall relate to promptness in conducting the review, technical excellence, lack of bias and conflict of interest, and knowledge of regulatory and scientific standards, and which shall apply equally to all individuals who review such applications.</content></subparagraph> <page identifier="/us/stat/111/2317">111 STAT. 2317</page> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><content>The Secretary shall meet with a sponsor of an investigation or an applicant for approval for a drug under this subsection or section 351 of the Public Health Service Act if the sponsor or applicant makes a reasonable written request for a meeting for the purpose of reaching agreement on the design and size of clinical trials intended to form the primary basis of an effectiveness claim. The sponsor or applicant shall provide information necessary for discussion and agreement on the design and size of the clinical trials. Minutes of any such meeting shall be prepared by the Secretary and made available to the sponsor or applicant upon request.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">“(C) </num><chapeau>Any agreement regarding the parameters of the design and size of clinical trials of a new drug under this paragraph that is reached between the Secretary and a sponsor or applicant shall be reduced to writing and made part of the administrative record by the Secretary. Such agreement shall not be changed after the testing begins, except—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>with the written agreement of the sponsor or applicant; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>pursuant to a decision, made in accordance with subparagraph (D) by the director of the reviewing division, that a substantial scientific issue essential to determining the safety or effectiveness of the drug has been identified after the testing has begun.</content></clause></subparagraph> <subparagraph class="indent0 fontsize10"><num value="D">“(D) </num><content>A decision under subparagraph (C)(ii) by the director shall be in writing and the Secretary shall provide to the sponsor or applicant an opportunity for a meeting at which the director and the sponsor or applicant will be present and at which the director will document the scientific issue involved.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="E">“(E) </num><content>The written decisions of the reviewing division shall be binding upon, and may not directly or indirectly be changed by, the field or compliance division personnel unless such field or compliance division personnel demonstrate to the reviewing division why such decision should be modified.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="F">“(F) </num><content>No action by the reviewing division may be delayed because of the unavailability of information from or action by field personnel unless the reviewing division determines that a delay is necessary to assure the marketing of a safe and effective drug.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="G">“(G) </num><content>For purposes of this paragraph, the reviewing division is the division responsible for the review of an application for approval of a drug under this subsection or section 351 of the Public Health Service Act (including all scientific and medical matters, chemistry, manufacturing, and controls).”.</content></subparagraph></paragraph></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Section</inline> 505(j).—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Amendment</inline>.—</heading><chapeau>Section 505(j) (21 U.S.C 355(j)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by redesignating paragraphs (3) through (8) as paragraphs (4) through (9), respectively; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by adding after paragraph (2) the following: <quotedContent><paragraph class="indent1 fontsize10"><num value="3">“(3)</num><subparagraph class="inline"><num value="A">(A) </num><content>The Secretary shall issue guidance for the individuals who review applications submitted under paragraph (1), which shall relate to promptness in conducting the review, technical excellence, lack of bias and conflict of interest, and knowledge of regulatory and scientific standards, and which shall apply equally to all individuals who review such applications.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><content>The Secretary shall meet with a sponsor of an investigation or an applicant for approval for a drug under this subsection if the sponsor or applicant makes a reasonable written request for <page identifier="/us/stat/111/2318">111 STAT. 2318</page>a meeting for the purpose of reaching agreement on the design and size of bioavailability and bioequivalence studies needed for approval of such application. The sponsor or applicant shall provide information necessary for discussion and agreement on the design and size of such studies. Minutes of any such meeting shall be prepared by the Secretary and made available to the sponsor or applicant.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">“(C) </num><chapeau>Any agreement regarding the parameters of design and size of bioavailability and bioequivalence studies of a drug under this paragraph that is reached between the Secretary and a sponsor or applicant shall be reduced to writing and made part of the administrative record by the Secretary. Such agreement shall not be changed after the testing begins, except—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>with the written agreement of the sponsor or applicant; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>pursuant to a decision, made in accordance with subparagraph (D) by the director of the reviewing division, that a substantial scientific issue essential to determining the safety or effectiveness of the drug has been identified after the testing has begun.</content></clause></subparagraph> <subparagraph class="indent0 fontsize10"><num value="D">“(D) </num><content>A decision under subparagraph (C)(ii) by the director shall be in writing and the Secretary shall provide to the sponsor or applicant an opportunity for a meeting at which the director and the sponsor or applicant will be present and at which the director will document the scientific issue involved.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="E">“(E) </num><content>The written decisions of the reviewing division shall be binding upon, and may not directly or indirectly be changed by, the field or compliance office personnel unless such field or compliance office personnel demonstrate to the reviewing division why such decision should be modified.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="F">“(F) </num><content>No action by the reviewing division may be delayed because of the unavailability of information from or action by field personnel unless the reviewing division determines that a delay is necessary to assure the marketing of a safe and effective drug.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="G">“(G) </num><content>For purposes of this paragraph, the reviewing division is the division responsible for the review of an application for approval of a drug under this subsection (including scientific matters, chemistry, manufacturing, and controls).”.</content></subparagraph></paragraph></quotedContent></content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Conforming amendments.</inline>—</heading><chapeau>Section 505(j) (21 U.S.C. 355(j)), as amended by paragraph (1), is further amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>in paragraph (2)(A)(i), by striking “<quotedText>(6)</quotedText>” and inserting “<quotedText>(7)</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>in paragraph (4) (as redesignated in paragraph (1)), by striking “<quotedText>(4)</quotedText>” and inserting “<quotedText>(5)</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>in paragraph (4)(I) (as redesignated in paragraph (1)), by striking “<quotedText>(5)</quotedText>” and inserting “<quotedText>(6)</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>in paragraph (7)(C) (as redesignated in paragraph (1)), by striking “<quotedText>(5)</quotedText>” each place it occurs and inserting “<quotedText>(6)</quotedText>”.</content></subparagraph></paragraph></subsection></section> <section><num value="120">SEC. 120. </num><heading>SCIENTIFIC ADVISORY PANELS.</heading> <content>Section 505 (21 U.S.C. 355) is amended by adding at the end the following: <quotedContent><subsection class="indent0 fontsize10"><num value="n">“(n)</num><paragraph class="inline"><num value="1">(1) </num><content>For the purpose of providing expert scientific advice and recommendations to the Secretary regarding a clinical investigation of a drug or the approval for marketing of a drug under section 505 or section 351 of the Public Health Service Act, the <page identifier="/us/stat/111/2319">111 STAT. 2319</page>Secretary shall establish panels of experts or use panels of experts established before the date of enactment of the Food and Drug Administration Modernization Act of 1997, or both.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The Secretary may delegate the appointment and oversight authority granted under section 904 to a director of a center or successor entity within the Food and Drug Administration.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><chapeau>The Secretary shall make appointments to each panel established under paragraph (1) so that each panel shall consist of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>members who are qualified by training and experience to evaluate the safety and effectiveness of the drugs to be referred to the panel and who, to the extent feasible, possess skill and experience in the development, manufacture, or utilization of such drugs;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>members with diverse expertise in such fields as clinical and administrative medicine, pharmacy, pharmacology, pharmacoeconomics, biological and physical sciences, and other related professions;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>a representative of consumer interests, and a representative of interests of the drug manufacturing industry not directly affected by the matter to be brought before the panel; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>two or more members who are specialists or have other expertise in the particular disease or condition for which the drug under review is proposed to be indicated.</content></subparagraph> <continuation class="indent0 fontsize10">Scientific, trade, and consumer organizations shall be afforded an opportunity to nominate individuals for appointment to the panels. No individual who is in the regular full-time employ of the United States and engaged in the administration of this Act may be a voting member of any panel. The Secretary shall designate one of the members of each panel to serve as chairman thereof.</continuation></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>Each member of a panel shall publicly disclose all conflicts of interest that member may have with the work to be undertaken by the panel. No member of a panel may vote on any matter where the member or the immediate family of such member could gain financially from the advice given to the Secretary. The Secretary may grant a waiver of any conflict of interest requirement upon public disclosure of such conflict of interest if such waiver is necessary to afford the panel essential expertise, except that the Secretary may not grant a waiver for a member of a panel when the member’s own scientific work is involved.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><content>The Secretary shall, as appropriate, provide education and training to each new panel member before such member participates in a panel’s activities, including education regarding requirements under this Act and related regulations of the Secretary, and the administrative processes and procedures related to panel meetings.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6) </num><content>Panel members (other than officers or employees of the United States), while attending meetings or conferences of a panel or otherwise engaged in its business, shall be entitled to receive compensation for each day so engaged, including travel-time, at rates to be fixed by the Secretary, but not to exceed the daily equivalent of the rate in effect for positions classified above grade GS-15 of the General Schedule. While serving away from their homes or regular places of business, panel members may be allowed travel expenses (including per diem in lieu of subsistence) as authorized by section 5703 of title 5, United States Code, for persons in the Government service employed intermittently.</content></paragraph> <page identifier="/us/stat/111/2320">111 STAT. 2320</page> <paragraph class="indent1 fontsize10"><num value="7">“(7) </num><content>The Secretary shall ensure that scientific advisory panels meet regularly and at appropriate intervals so that any matter to be reviewed by such a panel can be presented to the panel not more than 60 days after the matter is ready for such review. Meetings of the panel may be held using electronic communication to convene the meetings.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8) </num><content>Within 90 days after a scientific advisory panel makes recommendations on any matter under its review, the Food and Drug Administration official responsible for the matter shall review the conclusions and recommendations of the panel, and notify the affected persons of the final decision on the matter, or of the reasons that no such decision has been reached. Each such final decision shall be documented including the rationale for the decision.”.</content></paragraph></subsection></quotedContent></content></section> <section><num value="121">SEC. 121. </num><heading>POSITRON EMISSION TOMOGRAPHY.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Regulation of Compounded Positron Emission Tomography Drugs.</inline>—</heading><content>Section 201 (21 U.S.C. 321) is amended by adding at the end the following: <quotedContent><clause class="indent3 fontsize10"><num value="ii">“(ii) </num><chapeau>The term ‘compounded positron emission tomography drug’—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><chapeau>means a drug that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>exhibits spontaneous disintegration of unstable nuclei by the emission of positrons and is used for the purpose of providing dual photon positron emission tomographic diagnostic images; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>has been compounded by or on the order of a practitioner who is licensed by a State to compound or order compounding for a drug described in subparagraph (A), and is compounded in accordance with that State’s law, for a patient or for research, teaching, or quality control; and</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>includes any nonradioactive reagent, reagent kit, ingredient, nuclide generator, accelerator, target material, electronic synthesizer, or other apparatus or computer program to be used in the preparation of such a drug.”.</content></paragraph></clause></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Adulteration</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 501(a) (21 U.S.C. 351(a)) is amended by striking “<quotedText>; or (3)</quotedText>” and inserting the following: “; or (C) if it is a compounded positron emission tomography drug and the methods used in, or the facilities and controls used for, its compounding, processing, packing, or holding do not conform to or are not operated or administered in conformity with the positron emission tomography compounding standards and the official monographs of the United States Pharmacopoeia to assure that such drug meets the requirements of this Act as to safety and has the identity and strength, and meets the quality and purity characteristics, that it purports or is represented to possess; or (3)”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s351">21 USC 351</ref> note.</p></sidenote><heading><inline class="smallCaps">Sunset.</inline>—</heading><content>Section 501(a)(2)(C) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 351(a)(2)(C)) shall not apply 4 years after the date of enactment of this Act or 2 years after the date on which the Secretary of Health and Human Services establishes the requirements described in subsection (c)(1)(B), whichever is later.</content></paragraph></subsection> <page identifier="/us/stat/111/2321">111 STAT. 2321</page> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Requirements for Review of Approval Procedures and Current Good Manufacturing Practices for Positron Emission Tomography.—</inline></heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s355">21 USC 355</ref> note.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Procedures and requirements</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In order to take account of the special characteristics of positron emission tomography drugs and the special techniques and processes required to produce these drugs, not later than 2 years after the date of enactment of this Act, the Secretary of Health and Human Services shall establish—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>appropriate procedures for the approval of positron emission tomography drugs pursuant to section 505 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355); and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>appropriate current good manufacturing practice requirements for such drugs.</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><heading><inline class="smallCaps">Considerations and consultation</inline>.—</heading><content>In establishing the procedures and requirements required by subparagraph (A), the Secretary of Health and Human Services shall take due account of any relevant differences between not-for-profit institutions that compound the drugs for their patients and commercial manufacturers of the drugs. Prior to establishing the procedures and requirements, the Secretary of Health and Human Services shall consult with patient advocacy groups, professional associations, manufacturers, and physicians and scientists licensed to make or use positron emission tomography drugs.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Submission of new drug applications and abbreviated new drug applications</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in subparagraph (B), the Secretary of Health and Human Services shall not require the submission of new drug applications or abbreviated new drug applications under subsection (b) or (j) of section 505 (21 U.S.C. 355), for compounded positron emission tomography drugs that are not adulterated drugs described in section 501(a)(2)(C) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 351(a)(2)(C)) (as amended by subsection (b)), for a period of 4 years after the date of enactment of this Act, or for 2 years after the date on which the Secretary establishes procedures and requirements under paragraph (1), whichever is longer.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><heading><inline class="smallCaps">Exception</inline>.—</heading><content>Nothing in this Act shall prohibit the voluntary submission of such applications or the review of such applications by the Secretary of Health and Human Services. Nothing in this Act shall constitute an exemption for a positron emission tomography drug from the requirements of regulations issued under section 505(i) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355(i)).</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Revocation of Certain Inconsistent Documents</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8">Federal Register, publication.</p></sidenote><chapeau>Within 30 days after the date of enactment of this Act, the Secretary of Health and Human Services shall publish in the Federal Register a notice terminating the application of the following notices and rule:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>A notice entitled “Regulation of Positron Emission Tomography Radiopharmaceutical Drug Products; Guidance; Public Workshop”, published in the Federal Register on February 27, 1995, 60 Fed. Reg. 10594.</content></paragraph> <page identifier="/us/stat/111/2322">111 STAT. 2322</page> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>A notice entitled “Draft Guideline on the Manufacture of Positron Emission Tomography Radiopharmaceutical Drug Products; Availability”, published in the Federal Register on February 27, 1995, 60 Fed. Reg. 10593.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>A final rule entitled “Current Good Manufacturing Practice for Finished Pharmaceuticals; Positron Emission Tomography”, published in the Federal Register on April 22, 1997, 62 Fed. Reg. 19493 (codified at part 211 of title 21, Code of Federal Regulations).</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s355">21 USC 355</ref> note.</p></sidenote><heading><inline class="smallCaps">Definition.</inline>—</heading><content>As used in this section, the term “compounded positron emission tomography drug” has the meaning given the term in section 201 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321).</content></subsection></section> <section><num value="122">SEC. 122. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s355">21 USC 355</ref> note.</p></sidenote><heading>REQUIREMENTS FOR RADIOPHARMACEUTICALS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Requirements.—</inline></heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Regulations</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><heading><inline class="smallCaps">Proposed regulations</inline>.—</heading><content>Not later than 180 days after the date of enactment of this Act, the Secretary of Health and Human Services, after consultation with patient advocacy groups, associations, physicians licensed to use radiopharmaceuticals, and the regulated industry, shall issue proposed regulations governing the approval of radiopharmaceuticals. The regulations shall provide that the determination of the safety and effectiveness of such a radiopharmaceutical under section 505 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355) or section 351 of the Public Health Service Act (42 U.S.C. 262) shall include consideration of the proposed use of the radiopharmaceutical in the practice of medicine, the pharmacological and toxicological activity of the radiopharmaceutical (including any carrier or ligand component of the radiopharmaceutical), and the estimated absorbed radiation dose of the radiopharmaceutical.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><heading><inline class="smallCaps">Final regulations</inline>.—</heading><content>Not later than 18 months after the date of enactment of this Act, the Secretary shall promulgate final regulations governing the approval of the radiopharmaceuticals.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Special rule</inline>.—</heading><content>In the case of a radiopharmaceutical, the indications for which such radiopharmaceutical is approved for marketing may, in appropriate cases, refer to manifestations of disease (such as biochemical, physiological, anatomic, or pathological processes) common to, or present in, one or more disease states.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Definition</inline>.—</heading><chapeau>In this section, the term “radiopharmaceutical” means—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>an article—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>that is intended for use in the diagnosis or monitoring of a disease or a manifestation of a disease in humans; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>that exhibits spontaneous disintegration of unstable nuclei with the emission of nuclear particles or photons; or</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>any nonradioactive reagent kit or nuclide generator that is intended to be used in the preparation of any such article.</content></paragraph></subsection></section> <page identifier="/us/stat/111/2323">111 STAT. 2323</page> <section><num value="123">SEC. 123. </num><heading>MODERNIZATION OF REGULATION.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Licenses</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 351(a) of the Public Health Service Act (42 U.S.C. 262(a)) is amended to read as follows: <quotedContent><subsection class="indent0 fontsize10"><num value="a">“(a)</num><paragraph class="inline"><num value="1">(1) </num><chapeau>No person shall introduce or deliver for introduction into interstate commerce any biological product unless—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>a biologics license is in effect for the biological product; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><chapeau>each package of the biological product is plainly marked with—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>the proper name of the biological product contained in the package;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>the name, address, and applicable license number of the manufacturer of the biological product; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><content>the expiration date of the biological product.</content></clause></subparagraph></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2)</num><subparagraph class="inline"><num value="A">(A) </num><content>The Secretary shall establish, by regulation, requirements for the approval, suspension, and revocation of biologics licenses.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><chapeau>The Secretary shall approve a biologics license application—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><chapeau>on the basis of a demonstration that—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I) </num><content>the biological product that is the subject of the application is safe, pure, and potent; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II) </num><content>the facility in which the biological product is manufactured, processed, packed, or held meets standards designed to assure that the biological product continues to be safe, pure, and potent; and</content></subclause></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>if the applicant (or other appropriate person) consents to the inspection of the facility that is the subject of the application, in accordance with subsection (c).</content></clause></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>The Secretary shall prescribe requirements under which a biological product undergoing investigation shall be exempt from the requirements of paragraph (1).”.</content></paragraph></subsection></quotedContent></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Elimination of existing license requirement</inline>.—</heading><chapeau>Section 351(d) of the Public Health Service Act (42 U.S.C. 262(d)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking “<quotedText>(d)(1)</quotedText>” and all that follows through “of this section.”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><chapeau>in paragraph (2)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>by striking “<quotedText>(2)(A) Upon</quotedText>” and inserting “<quotedText>(d)(1) Upon</quotedText>” and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>by redesignating subparagraph (B) as paragraph (2); and</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><chapeau>in paragraph (2) (as so redesignated by subparagraph (B)(ii))—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>by striking “<quotedText>subparagraph (A)</quotedText>” and inserting “<quotedText>paragraph (1)</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>by striking “<quotedText>this subparagraph</quotedText>” each place it appears and inserting “<quotedText>this paragraph</quotedText>”.</content></clause></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Labeling</inline>.—</heading><content>Section 351(b) of the Public Health Service Act (42 U.S.C. 262(b)) is amended to read as follows: <quotedContent><subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>No person shall falsely label or mark any package or container of any biological product or alter any label or mark on the package or container of the biological product so as to falsify the label or mark.”.</content></subsection></quotedContent></content></subsection> <page identifier="/us/stat/111/2324">111 STAT. 2324</page> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Inspection</inline>.—</heading><content>Section 351(c) of the Public Health Service Act (42 U.S.C. 262(c)) is amended by striking “<quotedText>virus, serum,</quotedText>” and all that follows and inserting “<quotedText>biological product.</quotedText>”.</content></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Definition; Application</inline>.—</heading><content>Section 351 of the Public Health Service Act (42 U.S.C. 262) is amended by adding at the end the following: <quotedContent><subsection class="indent0 fontsize10"><num value="i">“(i) </num><content>In this section, the term ‘biological product’ means a virus, therapeutic serum, toxin, antitoxin, vaccine, blood, blood component or derivative, allergenic product, or analogous product, or arsphen-amine or derivative of arsphenamine (or any other trivalent organic arsenic compound), applicable to the prevention, treatment, or cure of a disease or condition of human beings.”.</content></subsection></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><heading><inline class="smallCaps">Conforming Amendment.</inline>—</heading><chapeau>Section 503(g)(4) (21 U.S.C. 353(g)(4)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>in subparagraph (A)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking “<quotedText>section 351(a)</quotedText>” and inserting “<quotedText>section 351(i)</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking “<quotedText>262(a)</quotedText>” and inserting “<quotedText>262(i)</quotedText>”; and</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in subparagraph (B)(iii), by striking “<quotedText>product or establishment license under subsection (a) or (d)</quotedText>” and inserting “<quotedText>biologics license application under subsection (a)</quotedText>”.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s355">21 USC 355</ref> note.</p></sidenote><heading><inline class="smallCaps">Special Rule</inline>.—</heading><content>The Secretary of Health and Human Services shall take measures to minimize differences in the review and approval of products required to have approved biologics license applications under section 351 of the Public Health Service Act (42 U.S.C. 262) and products required to have approved new drug applications under section 505(b)(1) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355(b)(1)).</content></subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><heading><inline class="smallCaps">Application of Federal Food, Drug, and Cosmetic Act</inline>.—</heading><content>Section 351 of the Public Health Service Act (42 U.S.C. 262), as amended by subsection (d), is further amended by adding at the end the following: <quotedContent><subsection class="indent0 fontsize10"><num value="j">“(j) </num><content>The Federal Food, Drug, and Cosmetic Act applies to a biological product subject to regulation under this section, except that a product for which a license has been approved under subsection (a) shall not be required to have an approved application under section 505 of such Act.”.</content></subsection></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num><heading><inline class="smallCaps">Examinations and Procedures</inline>.—</heading><content>Paragraph (3) of section 353(d) of the Public Health Service Act (42 U.S.C. 263a(d)) is amended to read as follows: <quotedContent><paragraph class="indent1 fontsize10"><num value="3">“(3) </num><heading><inline class="smallCaps">Examinations and procedures</inline>.—</heading><chapeau>The examinations and procedures identified in paragraph (2) are laboratory examinations and procedures that have been approved by the Food and Drug Administration for home use or that, as determined by the Secretary, are simple laboratory examinations and procedures that have an insignificant risk of an erroneous result, including those that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>employ methodologies that are so simple and accurate as to render the likelihood of erroneous results by the user negligible, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>the Secretary has determined pose no unreasonable risk of harm to the patient if performed incorrectly.”.</content></subparagraph></paragraph></quotedContent></content></subsection></section> <section><num value="124">SEC. 124. </num><heading>PILOT AND SMALL SCALE MANUFACTURE.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Human Drugs</inline>.—</heading><content>Section 505(c) (21 U.S.C. 355(c)) is amended by adding at the end the following: <page identifier="/us/stat/111/2325">111 STAT. 2325</page> <quotedContent><paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>A drug manufactured in a pilot or other small facility may be used to demonstrate the safety and effectiveness of the drug and to obtain approval for the drug prior to manufacture of the drug in a larger facility, unless the Secretary makes a determination that a full scale production facility is necessary to ensure the safety or effectiveness of the drug.”.</content></paragraph></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Animal Drugs</inline>.—</heading><content>Section 512(c) (21 U.S.C. 360b(c)) is amended by adding at the end the following: <quotedContent><paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>A drug manufactured in a pilot or other small facility may be used to demonstrate the safety and effectiveness of the drug and to obtain approval for the drug prior to manufacture of the drug in a larger facility, unless the Secretary makes a determination that a full scale production facility is necessary to ensure the safety or effectiveness of the drug.”.</content></paragraph></quotedContent></content></subsection></section> <section><num value="125">SEC. 125. </num><heading>INSULIN AND ANTIBIOTICS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Certification of Drugs Containing Insulin.</inline>—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Amendment</inline>.—</heading><content>Section 506 (21 U.S.C. 356), as in effect before the date of the enactment of this Act, is repealed.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Conforming amendments.</inline>—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>Section 301(j) (21 U.S.C. 331(j)) is amended by striking “<quotedText>506, 507</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>Subsection (k) of section 502 (21 U.S.C. 352) is repealed.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>Sections 301(i)(1), 510(j)(1)(A), and 510(j)(1)(D) (21 U.S.C. 331(i)(1), 360(j)(1)(A), 360(j)(1)(D)) are each amended by striking “<quotedText>, 506, 507,</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>Section 801(d)(1) (21 U.S.C. 381(d)(1)) is amended by inserting after “<quotedText>503(b)</quotedText>” the following: “or composed wholly or partly of insulin”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E) </num><content>Section 8126(h)(2) of title 38, United States Code, is amended by inserting “<quotedText>or</quotedText>” at the end of subparagraph (B), by striking “<quotedText>; or</quotedText>” at the end of subparagraph (C) and inserting a period, and by striking subparagraph (D).</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Certification of Antibiotics</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Amendment</inline>.—</heading><content>Section 507 (21 U.S.C. 357) is repealed.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Conforming amendments</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>Section 201(aa) (21 U.S.C. 321(aa)) is amended by striking out “or 507”, section 201(dd) (21 U.S.C. 321(dd)) is amended by striking “<quotedText>507,</quotedText>”, and section 201(ff)(3)(A) (21 U.S.C. 321(ff)(3)(A)) is amended by striking “<quotedText>, certified as an antibiotic under section 507,</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>Section 301(e) (21 U.S.C. 331(e)) is amended by striking “<quotedText>507(d) or (g),</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>Section 306(d)(4)(B)(ii) (21 U.S.C. 335a(d)(4)(B)(ii)) is amended by striking “<quotedText>or 507</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>Section 502 (21 U.S.C. 352) is amended by striking subsection (1).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E) </num><content>Section 520(1) (21 U.S.C. 360j(l)) is amended by striking paragraph (4) and by striking “<quotedText>or Antibiotic Drugs</quotedText>” in the subsection heading.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F) </num><content>Section 525(a) (21 U.S.C. 360aa(a)) is amended by inserting “<quotedText>or</quotedText>” at the end of paragraph (1), by striking paragraph (2), and by redesignating paragraph (3) as paragraph (2).</content></subparagraph> <page identifier="/us/stat/111/2326">111 STAT. 2326</page> <subparagraph class="indent2 fontsize10"><num value="G">(G) </num><content>Section 525(a) (21 U.S.C. 360aa(a)) is amended by striking “<quotedText>, certification of such drug for such disease or condition under section 507,</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">(H) </num><content>Section 526(a)(1) (21 U.S.C. 360bb) is amended by striking “<quotedText>the submission of an application for certification of the drug under section 507,</quotedText>”, by inserting “<quotedText>or</quotedText>” at the end of subparagraph (A), by striking subparagraph (B), and by redesignating subparagraph (C) as subparagraph (B).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="I">(I) </num><chapeau>Section 526(b) (21 U.S.C. 360bb(b)) is amended—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>in paragraph (1), by striking “<quotedText>, a certificate was issued for the drug under section 507,</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>in paragraph (2) by striking “<quotedText>, a certificate has not been issued for the drug under section 507,</quotedText>” and by striking “<quotedText>, approval of an application for certification under section 507,</quotedText>”.</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="J">(J) </num><content>Section 527(a) (21 U.S.C. 360cc(a)) is amended by inserting “<quotedText>or</quotedText>” at the end of paragraph (1), by striking paragraph (2), by redesignating paragraph (3) as paragraph (2), and by striking “<quotedText>, issue another certification under section 507,</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="K">(K) </num><content>Section 527(b) (21 U.S.C. 360cc(b)) is amended by striking “<quotedText>, if a certification is issued under section 507 for such a drug,</quotedText>”, “, of the issuance of the certification under section 507,”, “, issue another certification under section 507,”, “, of such certification,”, “, of the certification,”, and “, issuance of other certifications,”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="L">(L) </num><content>Section 704(a)(1) (21 U.S.C. 374(a)(1)) is amended by striking “<quotedText>, section 507 (d) or (g),</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="M">(M) </num><content>Section 735(1) (21 U.S.C. 379g(1)(C)) is amended by inserting “<quotedText>or</quotedText>” at the end of subparagraph (B), by striking subparagraph (C), and by redesignating subparagraph (D) as subparagraph (C).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="N">(N) </num><content>Subparagraphs (A)(ii) and (B) of sections 5(b)(1) of the Orphan Drug Act (21 U.S.C. 360ee(b)(1)(A), 360ee(b)(1)(B)) are each amended by striking “<quotedText>or 507</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="O">(O) </num><content>Section 45C(b)(2)(A)(ii)(II) of the Internal Revenue <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s45C">26 USC 45C</ref>.</p></sidenote>Code of 1986 is amended by striking “<quotedText>or 507</quotedText>”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="P">(P) </num><content>Section 156(f)(4)(B) of title 35, United States Code, is amended by striking “507,” each place it occurs.</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Exportation</inline>.—</heading><content>Section 802 (21 U.S.C. 382) is amended by adding at the end the following: <quotedContent><subsection class="indent0 fontsize10"><num value="i">“(i) </num><content>Insulin and antibiotic drugs may be exported without regard to the requirements in this section if the insulin and antibiotic drugs meet the requirements of section 801(e)(1).”.</content></subsection></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s355">21 USC 355</ref> note.</p></sidenote><heading><inline class="smallCaps">Transition</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>An application that was approved by the Secretary of Health and Human Services before the date of the enactment of this Act for the marketing of an antibiotic drug under section 507 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 357), as in effect on the day before the date of the enactment of this Act, shall, on and after such date of enactment, be considered to be an application that was submitted and filed under section 505(b) of such Act (21 U.S.C. 355(b)) and approved for safety and effectiveness under section <page identifier="/us/stat/111/2327">111 STAT. 2327</page>505(c) of such Act (21 U.S.C. 355(c)), except that if such application for marketing was in the form of an abbreviated application, the application shall be considered to have been filed and approved under section 505(j) of such Act (21 U.S.C. 355(j)).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Exception</inline>.—</heading><chapeau>The following subsections of section 505 (21 U.S.C. 355) shall not apply to any application for marketing in which the drug that is the subject of the application contains an antibiotic drug and the antibiotic drug was the subject of any application for marketing received by the Secretary of Health and Human Services under section 507 of such Act (21 U.S.C. 357) before the date of the enactment of this Act:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A)</num><clause class="inline"><num value="i">(i) </num><content>Subsections (c)(2), (d)(6), (e)(4), (j)(2)(A)(vii), (j)(2)(A)(viii), (j)(2)(B), (j)(4)(B), and (j)(4)(D); and</content></clause> <clause class="indent0 fontsize10"><num value="ii">(ii) </num><content>The third and fourth sentences of subsection (b)(1) (regarding the filing and publication of patent information); and</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>Subsections (b)(2)(A), (b)(2)(B), (b)(3), and (c)(3) if the investigations relied upon by the applicant for approval of the application were not conducted by or for the applicant and for which the applicant has not obtained a right of reference or use from the person by or for whom the investigations were conducted.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Publication</inline>.—</heading><content>For purposes of this section, the Secretary is authorized to make available to the public the established name of each antibiotic drug that was the subject of any application for marketing received by the Secretary for Health and Human Services under section 507 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 357) before the date of enactment of this Act.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><heading><inline class="smallCaps">Definition</inline>.—</heading><content>Section 201 (21 U.S.C. 321), as amended by section 121(a)(1), is further amended by adding at the end the following: <quotedContent><item class="indent0 fontsize10"><num value="jj">“(jj) </num><content>The term ‘antibiotic drug’ means any drug (except drugs for use in animals other than humans) composed wholly or partly of any kind of penicillin, streptomycin, chlortetracycline, chloramphenicol, bacitracin, or any other drug intended for human use containing any quantity of any chemical substance which is produced by a micro-organism and which has the capacity to inhibit or destroy micro-organisms in dilute solution (including a chemically synthesized equivalent of any such substance) or any derivative thereof.”.</content></item></quotedContent></content></subsection></section> <section><num value="126">SEC. 126. </num><heading>ELIMINATION OF CERTAIN LABELING REQUIREMENTS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Prescription Drugs</inline>.—</heading><content>Section 503(b)(4) (21 U.S.C. 353(b)(4)) is amended to read as follows: <quotedContent><paragraph class="indent1 fontsize10"><num value="4">“(4)</num><subparagraph class="inline"><num value="A">(A) </num><content>A drug that is subject to paragraph (1) shall be deemed to be misbranded if at any time prior to dispensing the label of the drug fails to bear, at a minimum, the symbol ‘Rx only’.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><content>A drug to which paragraph (1) does not apply shall be deemed to be misbranded if at any time prior to dispensing the label of the drug bears the symbol described in subparagraph (A).”.</content></subparagraph></paragraph></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Misbranded Drug</inline>.—</heading><content>Section 502(d) (21 U.S.C. 352(d)) is repealed.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Conforming Amendments.</inline>—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>Section 503(b)(1) (21 U.S.C. 353(b)(1)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking subparagraph (A); and</content></subparagraph> <page identifier="/us/stat/111/2328">111 STAT. 2328</page> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Section 503(b)(3) (21 U.S.C. 353(b)(3)) is amended by striking “<quotedText>section 502(d) and</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><chapeau>Section 102(9)(A) of the Controlled Substances Act (21 U.S.C. 802(9)(A)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>in clause (i), by striking “<quotedText>(i)</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking “<quotedText>(h)</quotedText>” and all that follows.</content></subparagraph></paragraph></subsection></section> <section><num value="127">SEC. 127. </num><heading>APPLICATION OF FEDERAL LAW TO PRACTICE OF PHARMACY COMPOUNDING.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Amendment</inline>.—</heading><content>Chapter V is amended by inserting after section 503 (21 U.S.C. 353) the following: <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s353a">21 USC 353a</ref>.</p></sidenote> <quotedContent> <section><num value="503A">“SEC. 503A. </num><heading>PHARMACY COMPOUNDING.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><heading><inline class="smallCaps">In General.—</inline></heading><chapeau>Sections 501(a)(2)(B), 502(f)(1), and 505 shall not apply to a drug product if the drug product is compounded for an identified individual patient based on the unsolicited receipt of a valid prescription order or a notation, approved by the prescribing practitioner, on the prescription order that a compounded product is necessary for the identified patient, if the drug product meets the requirements of this section, and if the compounding—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><chapeau>is by—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>a licensed pharmacist in a State licensed pharmacy or a Federal facility, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>a licensed physician,</content></subparagraph> <continuation class="indent0 fontsize10">on the prescription order for such individual patient made by a licensed physician or other licensed practitioner authorized by State law to prescribe drugs; or</continuation></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num><subparagraph class="inline"><num value="A">(A) </num><content>is by a licensed pharmacist or licensed physician in limited quantities before the receipt of a valid prescription order for such individual patient; and</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><chapeau>is based on a history of the licensed pharmacist or licensed physician receiving valid prescription orders for the compounding of the drug product, which orders have been generated solely within an established relationship between—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>the licensed pharmacist or licensed physician; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii)</num><subclause class="inline"><num value="I">(I) </num><content>such individual patient for whom the prescription order will be provided; or</content></subclause> <subclause class="indent0 fontsize10"><num value="II">“(II) </num><content>the physician or other licensed practitioner who will write such prescription order.</content></subclause></clause></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><heading><inline class="smallCaps">Compounded Drug</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">Licensed pharmacist and licensed physician</inline>.—</heading><chapeau>A drug product may be compounded under subsection (a) if the licensed pharmacist or licensed physician—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><chapeau>compounds the drug product using bulk drug substances, as defined in regulations of the Secretary published at section 207.3(a)(4) of title 21 of the Code of Federal Regulations—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><chapeau>that—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I) </num><content>comply with the standards of an applicable United States Pharmacopoeia or National Formulary monograph, if a monograph exists, and the United States Pharmacopoeia chapter on pharmacy compounding;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II) </num><content>if such a monograph does not exist, are drug substances that are components of drugs approved by the Secretary; or</content></subclause> <page identifier="/us/stat/111/2329">111 STAT. 2329</page> <subclause class="indent4 fontsize10"><num value="III">“(III) </num><content>if such a monograph does not exist and the drug substance is not a component of a drug approved by the Secretary, that appear on a list developed by the Secretary through regulations issued by the Secretary under subsection (a);</content></subclause></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>that are manufactured by an establishment that is registered under section 510 (including a foreign establishment that is registered under section 510(f)); and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><content>that are accompanied by valid certificates of analysis for each bulk drug substance;</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>compounds the drug product using ingredients (other than bulk drug substances) that comply with the standards of an applicable United States Pharmacopoeia or National Formulary monograph, if a monograph exists, and the United States Pharmacopoeia chapter on pharmacy compounding;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>does not compound a drug product that appears on a list published by the Secretary in the Federal Register of drug products that have been withdrawn or removed from the market because such drug products or components of such drug products have been found to be unsafe or not effective; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>does not compound regularly or in inordinate amounts (as defined by the Secretary) any drug products that are essentially copies of a commercially available drug product.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">Definition</inline>.—</heading><content>For purposes of paragraph (1)(D), the term ‘essentially a copy of a commercially available drug product’ does not include a drug product in which there is a change, made for an identified individual patient, which produces for that patient a significant difference, as determined by the prescribing practitioner, between the compounded drug and the comparable commercially available drug product.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><heading><inline class="smallCaps">Drug product</inline>.—</heading><chapeau>A drug product may be compounded under subsection (a) only if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>such drug product is not a drug product identified by the Secretary by regulation as a drug product that presents demonstrable difficulties for compounding that reasonably demonstrate an adverse effect on the safety or effectiveness of that drug product; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><chapeau>such drug product is compounded in a State—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>that has entered into a memorandum of understanding with the Secretary which addresses the distribution of inordinate amounts of compounded drug products interstate and provides for appropriate investigation by a State agency of complaints relating to compounded drug products distributed outside such State; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>that has not entered into the memorandum of understanding described in clause (i) and the licensed pharmacist, licensed pharmacy, or licensed physician distributes (or causes to be distributed) compounded drug products out of the State in which they are compounded in quantities that do not exceed 5 percent of the total prescription orders dispensed or distributed by such pharmacy or physician.</content></clause> <page identifier="/us/stat/111/2330">111 STAT. 2330</page> <continuation class="indent0 fontsize10">The Secretary shall, in consultation with the National Association of Boards of Pharmacy, develop a standard memorandum of understanding for use by the States in complying with subparagraph (B)(i).</continuation></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><heading><inline class="smallCaps">Advertising and Promotion</inline>.—</heading><content>A drug may be compounded under subsection (a) only if the pharmacy, licensed pharmacist, or licensed physician does not advertise or promote the compounding of any particular drug, class of drug, or type of drug. The pharmacy, licensed pharmacist, or licensed physician may advertise and promote the compounding service provided by the licensed pharmacist or licensed physician.</content></subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><heading><inline class="smallCaps">Regulations.</inline>—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall issue regulations to implement this section. Before issuing regulations to implement subsections (b)(1)(A)(i)(III), (b)(1)(C), or (b)(3)(A), the Secretary shall convene and consult an advisory committee on compounding unless the Secretary determines that the issuance of such regulations before consultation is necessary to protect the public health. The advisory committee shall include representatives from the National Association of Boards of Pharmacy, the United States Pharmacopoeia, pharmacy, physician, and consumer organizations, and other experts selected by the Secretary.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">Limiting compounding.</inline>—</heading><content>The Secretary, in consultation with the United States Pharmacopoeia Convention, Incorporated, shall promulgate regulations identifying drug substances that may be used in compounding under subsection (b)(1)(A)(i)(III) for which a monograph does not exist or which are not components of drug products approved by the Secretary. The Secretary shall include in the regulation the criteria for such substances, which shall include historical use, reports in peer reviewed medical literature, or other criteria the Secretary may identify.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><heading><inline class="smallCaps">Application</inline>.—</heading><chapeau>This section shall not apply to—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>compounded positron emission tomography drugs as defined in section 201(ii); or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>radiopharmaceuticals.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><heading><inline class="smallCaps">Definition.—</inline></heading><content>As used in this section, the term ‘compounding’ does not include mixing, reconstituting, or other such acts that are performed in accordance with directions contained in approved labeling provided by the product’s manufacturer and other manufacturer directions consistent with that labeling.”.</content></subsection></section></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s353a">21 USC 353a</ref> note.</p></sidenote><heading><inline class="smallCaps">Effective Date.</inline>—</heading><content>Section 503A of the Federal Food, Drug, and Cosmetic Act, added by subsection (a), shall take effect upon the expiration of the 1-year period beginning on the date of the enactment of this Act.</content></subsection></section> <section><num value="128">SEC. 128. </num><heading>REAUTHORIZATION OF CLINICAL PHARMACOLOGY PROGRAM.</heading> <chapeau>Section 2 of Public Law 102–222 (105 Stat. 1677) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subsection (a), by striking “<quotedText>a grant</quotedText>” and all that follows through “Such grant” and inserting the following: “grants for a pilot program for the training of individuals in clinical pharmacology at appropriate medical schools. Such grants”; and</content></paragraph> <page identifier="/us/stat/111/2331">111 STAT. 2331</page> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in subsection (b), by striking “<quotedText>to carry out this section</quotedText>” and inserting “<quotedText>, and for fiscal years 1998 through 2002 $3,000,000 for each fiscal year, to carry out this section</quotedText>”.</content></paragraph></section> <section><num value="129">SEC. 129. </num><heading>REGULATIONS FOR SUNSCREEN PRODUCTS.</heading> <content>Not later than 18 months after the date of enactment of this Act, the Secretary of Health and Human Services shall issue regulations for over-the-counter sunscreen products for the prevention or treatment of sunburn.</content></section> <section><num value="130">SEC. 130. </num><heading>REPORTS OF POSTMARKETING APPROVAL STUDIES.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s393">21 USC 393</ref> note.</p></sidenote> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">In General.</inline>—</heading><content>Chapter V, as amended by section 116, is further amended by inserting after section 506A the following: <quotedContent> <section><num value="506B">“SEC. 506B. </num><heading>REPORTS OF POSTMARKETING STUDIES.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s356b">21 USC 356b</ref>.</p></sidenote> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><heading><inline class="smallCaps">Submission.</inline>—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>A sponsor of a drug that has entered into an agreement with the Secretary to conduct a postmarketing study of a drug shall submit to the Secretary, within 1 year after the approval of such drug and annually thereafter until the study is completed or terminated, a report of the progress of the study or the reasons for the failure of the sponsor to conduct the study. The report shall be submitted in such form as is prescribed by the Secretary in regulations issued by the Secretary.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">Agreements prior to effective date</inline>.—</heading><content>Any agreement entered into between the Secretary and a sponsor of a drug, prior to the date of enactment of the Food and Drug Administration Modernization Act of 1997, to conduct a postmarketing study of a drug shall be subject to the requirements of paragraph (1). An initial report for such an agreement shall be submitted within 6 months after the date of the issuance of the regulations under paragraph (1).</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><heading><inline class="smallCaps">Consideration of Information as Public Information.</inline>—</heading><chapeau>Any information pertaining to a report described in subsection (a) shall be considered to be public information to the extent that the information is necessary—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>to identify the sponsor; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>to establish the status of a study described in subsection (a) and the reasons, if any, for any failure to carry out the study.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><heading><inline class="smallCaps">Status of Studies and Reports</inline>.—</heading><chapeau>The Secretary shall <sidenote><p class="indent0 firstIndent0 fontsize8">Federal Register, publication.</p></sidenote>annually develop and publish in the Federal Register a report that provides information on the status of the postmarketing studies—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>that sponsors have entered into agreements to conduct; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>for which reports have been submitted under subsection (a)(1).”.</content></paragraph></subsection></section></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Report to Congressional Committees</inline>.—</heading><chapeau>Not later than <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s356b">21 USC 356b</ref> note.</p></sidenote>October 1, 2001, the Secretary shall prepare and submit to the Committee on Labor and Human Resources of the Senate and the Committee on Commerce of the House of Representatives a report containing—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>a summary of the reports submitted under section 506B of the Federal Food, Drug, and Cosmetic Act;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>an evaluation of—</chapeau> <page identifier="/us/stat/111/2332">111 STAT. 2332</page> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the performance of the sponsors referred to in such section in fulfilling the agreements with respect to the conduct of postmarketing studies described in such section of such Act; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the timeliness of the Secretary’s review of the postmarketing studies; and</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>any legislative recommendations respecting the postmarketing studies.</content></paragraph></subsection></section> <section><num value="131">SEC. 131. </num><heading>NOTIFICATION OF DISCONTINUANCE OF A LIFE SAVING PRODUCT.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">In General.</inline>—</heading><content>Chapter V, as amended by section 130, is further amended by inserting after section 506B the following: <quotedContent><section><num value="506C">“SEC. 506C. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s356c">21 USC 356c</ref>.</p></sidenote><heading>DISCONTINUANCE OF A LIFE SAVING PRODUCT.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><heading><inline class="smallCaps">In General.</inline>—</heading><chapeau>A manufacturer that is the sole manufacturer of a drug—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><chapeau>that is—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>life-supporting;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>life-sustaining; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>intended for use in the prevention of a debilitating disease or condition;</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>for which an application has been approved under section 505(b) or 505(j); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>that is not a product that was originally derived from human tissue and was replaced by a recombinant product, shall notify the Secretary of a discontinuance of the manufacture of the drug at least 6 months prior to the date of the discontinuance.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><heading><inline class="smallCaps">Reduction in Notification Period</inline>.—</heading><chapeau>The notification period required under subsection (a) for a manufacturer may be reduced if the manufacturer certifies to the Secretary that good cause exists for the reduction, such as a situation in which—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>a public health problem may result from continuation of the manufacturing for the 6-month period;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>a biomaterials shortage prevents the continuation of the manufacturing for the 6-month period;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>a liability problem may exist for the manufacturer if the manufacturing is continued for the 6-month period;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>continuation of the manufacturing for the 6-month period may cause substantial economic hardship for the manufacturer;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><content>the manufacturer has filed for bankruptcy under chapter 7 or 11 of title 11, United States Code; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6) </num><content>the manufacturer can continue the distribution of the drug involved for 6 months.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><heading><inline class="smallCaps">Distribution</inline>.—</heading><content>To the maximum extent practicable, the Secretary shall distribute information on the discontinuation of the drugs described in subsection (a) to appropriate physician and patient organizations.”.</content></subsection></section></quotedContent></content></subsection></section> </subtitle> <num value="I">TITLE II—</num><heading>IMPROVING REGULATION OF DEVICES</heading> <section><num value="201">SEC. 201. </num><heading>INVESTIGATIONAL DEVICE EXEMPTIONS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 520(g) (21 U.S.C. 360j(g)) is amended by adding at the end the following: <page identifier="/us/stat/111/2333">111 STAT. 2333</page> <quotedContent><paragraph class="indent1 fontsize10"><num value="6">“(6)</num><subparagraph class="inline"><num value="A">(A) </num><chapeau>Not later than 1 year after the date of the enactment of the Food and Drug Administration Modernization Act of 1997, the Secretary shall by regulation establish, with respect to a device for which an exemption under this subsection is in effect, procedures and conditions that, without requiring an additional approval of an application for an exemption or the approval of a supplement to such an application, permit—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>developmental changes in the device (including manufacturing changes) that do not constitute a significant change in design or in basic principles of operation and that are made in response to information gathered during the course of an investigation; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><chapeau>changes or modifications to clinical protocols that do not affect—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I) </num><content>the validity of data or information resulting from the completion of an approved protocol, or the relationship of likely patient risk to benefit relied upon to approve a protocol;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II) </num><content>the scientific soundness of an investigational plan submitted under paragraph (3)(A); or</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III) </num><content>the rights, safety, or welfare of the human subjects involved in the investigation.</content></subclause></clause></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><chapeau>Regulations under subparagraph (A) shall provide that a change or modification described in such subparagraph may be made if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>the sponsor of the investigation determines, on the basis of credible information (as defined by the Secretary) that the applicable conditions under subparagraph (A) are met; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>the sponsor submits to the Secretary, not later than 5 days after making the change or modification, a notice of the change or modification.</content></clause></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7)</num><subparagraph class="inline"><num value="A">(A) </num><content>In the case of a person intending to investigate the safety or effectiveness of a class III device or any implantable device, the Secretary shall ensure that the person has an opportunity, prior to submitting an application to the Secretary or to an institutional review committee, to submit to the Secretary, for review, an investigational plan (including a clinical protocol). If the applicant submits a written request for a meeting with the Secretary regarding such review, the Secretary shall, not later than 30 days after receiving the request, meet with the applicant for the purpose of reaching agreement regarding the investigational plan (including a clinical protocol). The written request shall include a detailed description of the device, a detailed description of the proposed conditions of use of the device, a proposed plan (including a clinical protocol) for determining whether there is a reasonable assurance of effectiveness, and, if available, information regarding the expected performance from the device.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><chapeau>Any agreement regarding the parameters of an investigational plan (including a clinical protocol) that is reached between the Secretary and a sponsor or applicant shall be reduced to writing and made part of the administrative record by the Secretary. Any such agreement shall not be changed, except—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>with the written agreement of the sponsor or applicant; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>pursuant to a decision, made in accordance with subparagraph (C) by the director of the office in which the device involved is reviewed, that a substantial scientific issue <page identifier="/us/stat/111/2334">111 STAT. 2334</page>essential to determining the safety or effectiveness of the device involved has been identified.</content></clause></subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">“(C) </num><content>A decision under subparagraph (B)(ii) by the director shall be in writing, and may be made only after the Secretary has provided to the sponsor or applicant an opportunity for a meeting at which the director and the sponsor or applicant are present and at which the director documents the scientific issue involved.”.</content></subparagraph></paragraph></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Action on Application</inline>.—</heading><content>Section 515(d)(1)(B) (21 U.S.C. 360e(d)(1)(B)) is amended by adding at the end the following: <quotedContent><clause class="indent3 fontsize10"><num value="iii">“(iii) </num><chapeau>The Secretary shall accept and review statistically valid and reliable data and any other information from investigations conducted under the authority of regulations required by section 520(g) to make a determination of whether there is a reasonable assurance of safety and effectiveness of a device subject to a pending application under this section if—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I) </num><content>the data or information is derived from investigations of an earlier version of the device, the device has been modified during or after the investigations (but prior to submission of an application under subsection (c)) and such a modification of the device does not constitute a significant change in the design or in the basic principles of operation of the device that would invalidate the data or information; or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II) </num><content>the data or information relates to a device approved under this section, is available for use under this Act, and is relevant to the design and intended use of the device for which the application is pending.”.</content></subclause></clause></quotedContent></content></subsection></section> <section><num value="202">SEC. 202. </num><heading>SPECIAL REVIEW FOR CERTAIN DEVICES.</heading> <chapeau>Section 515(d) (21 U.S.C. 360e(d)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by redesignating paragraph (3) as paragraph (4); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following: <quotedContent><paragraph class="indent1 fontsize10"><num value="5">“(5) </num><chapeau>In order to provide for more effective treatment or diagnosis of life-threatening or irreversibly debilitating human diseases or conditions, the Secretary shall provide review priority for devices—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>representing breakthrough technologies,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>for which no approved alternatives exist,</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>which offer significant advantages over existing approved alternatives, or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>the availability of which is in the best interest of the patients.”.</content></subparagraph></paragraph></quotedContent></content></paragraph></section> <section><num value="203">SEC. 203. </num><heading>EXPANDING HUMANITARIAN USE OF DEVICES.</heading> <chapeau>Section 520(m) (21 U.S.C. 360j(m)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in paragraph (2), by adding after and below subparagraph (C) the following sentences: <quotedContent><p class="indent0 fontsize10">“The request shall be in the form of an application submitted to the Secretary. Not later than 75 days after the date of the receipt of the application, the Secretary shall issue an order approving or denying the application.”;</p></quotedContent></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>in paragraph (4)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>in subparagraph (B), by inserting after “<quotedText>(2)(A)</quotedText>” the following: “, unless a physician determines in an emergency situation that approval from a local institutional review committee can not be obtained in time to prevent serious harm or death to a patient”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by adding after and below subparagraph (B) the following: <page identifier="/us/stat/111/2335">111 STAT. 2335</page> <quotedContent><p class="indent0 fontsize10">“In a case described in subparagraph (B) in which a physician uses a device without an approval from an institutional review committee, the physician shall, after the use of the device, notify the chairperson of the local institutional review committee of such use. Such notification shall include the identification of the patient involved, the date on which the device was used, and the reason for the use.”;</p></quotedContent></content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by amending paragraph (5) to read as follows: <quotedContent><paragraph class="indent1 fontsize10"><num value="5">“(5) </num><content>The Secretary may require a person granted an exemption under paragraph (2) to demonstrate continued compliance with the requirements of this subsection if the Secretary believes such demonstration to be necessary to protect the public health or if the Secretary has reason to believe that the criteria for the exemption are no longer met.”; and</content></paragraph></quotedContent></content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>by amending paragraph (6) to read as follows: <quotedContent><paragraph class="indent1 fontsize10"><num value="6">“(6) </num><content>The Secretary may suspend or withdraw an exemption from the effectiveness requirements of sections 514 and 515 for a humanitarian device only after providing notice and an opportunity for an informal hearing.”.</content></paragraph></quotedContent></content></paragraph></section> <section><num value="204">SEC. 204. </num><heading>DEVICE STANDARDS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Alternative Procedure.</inline>—</heading><content>Section 514 (21 U.S.C. 360d) is amended by adding at the end the following: <quotedContent><subsection class="indent0 fontsize10"><heading class="centered">“Recognition of a Standard</heading> <num value="c">“(c)</num><paragraph class="inline"><num value="1">(1)</num><subparagraph class="inline"><num value="A">(A) </num><content>In addition to establishing a performance standard <sidenote><p class="indent0 firstIndent0 fontsize8">Federal Register, publication.</p></sidenote>under this section, the Secretary shall, by publication in the Federal Register, recognize all or part of an appropriate standard established by a nationally or internationally recognized standard development organization for which a person may submit a declaration of conformity in order to meet a premarket submission requirement or other requirement under this Act to which such standard is applicable.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><content>If a person elects to use a standard recognized by the Secretary under subparagraph (A) to meet the requirements described in such subparagraph, the person shall provide a declaration of conformity to the Secretary that certifies that the device is in conformity with such standard. A person may elect to use data, or information, other than data required by a standard recognized under subparagraph (A) to meet any requirement regarding devices under this Act.</content></subparagraph></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The Secretary may withdraw such recognition of a standard <sidenote><p class="indent0 firstIndent0 fontsize8">Federal Register, publication.</p></sidenote>through publication of a notice in the Federal Register if the Secretary determines that the standard is no longer appropriate for meeting a requirement regarding devices under this Act.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3)</num><subparagraph class="inline"><num value="A">(A) </num><chapeau>Subject to subparagraph (B), the Secretary shall accept a declaration of conformity that a device is in conformity with a standard recognized under paragraph (1) unless the Secretary finds—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>that the data or information submitted to support such declaration does not demonstrate that the device is in conformity with the standard identified in the declaration of conformity; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>that the standard identified in the declaration of conformity is not applicable to the particular device under review.</content></clause></subparagraph> <page identifier="/us/stat/111/2336">111 STAT. 2336</page> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><content>The Secretary may request, at any time, the data or information relied on by the person to make a declaration of conformity with respect to a standard recognized under paragraph (1).</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">“(C) </num><content>A person making a declaration of conformity with respect to a standard recognized under paragraph (1) shall maintain the data and information demonstrating conformity of the device to the standard for a period of two years after the date of the classification or approval of the device by the Secretary or a period equal to the expected design life of the device, whichever is longer.”.</content></subparagraph></paragraph></subsection></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Section</inline> 301.—</heading><content>Section 301 (21 U.S.C. 331) is amended by adding at the end the following: <quotedContent><subsection class="indent0 fontsize10"><num value="x">“(x) </num><content>The falsification of a declaration of conformity submitted under section 514(c) or the failure or refusal to provide data or information requested by the Secretary under paragraph (3) of such section.”.</content></subsection></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Section 501.</inline>—</heading><chapeau>Section 501(e) (21 U.S.C. 351(e)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking “<quotedText>(e)</quotedText>” and inserting “<quotedText>(e)(1)</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting at the end the following: <quotedContent><paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>If it is declared to be, purports to be, or is represented as, a device that is in conformity with any standard recognized under section 514(c) unless such device is in all respects in conformity with such standard.”.</content></paragraph></quotedContent></content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Conforming Amendments.</inline>—</heading><chapeau>Section 514(a) (21 U.S.C. 360d(a)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in paragraph (1), in the second sentence, by striking “<quotedText>under this section</quotedText>” and inserting “<quotedText>under subsection (b)</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in paragraph (2), in the matter preceding subparagraph (A), by striking “<quotedText>under this section</quotedText>” and inserting “<quotedText>under subsection (b)</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>in paragraph (3), by striking “<quotedText>under this section</quotedText>” and inserting “<quotedText>under subsection (b)</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>in paragraph (4), in the matter preceding subparagraph (A), by striking “<quotedText>this section</quotedText>” and inserting “<quotedText>this subsection and subsection (b)</quotedText>”.</content></paragraph></subsection></section> <section><num value="205">SEC. 205. </num><heading>SCOPE OF REVIEW; COLLABORATIVE DETERMINATIONS OF DEVICE DATA REQUIREMENTS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Section 513(a)</inline>.—</heading><content>Section 513(a)(3) (21 U.S.C. 360c(a)(3)) is amended by adding at the end the following: <quotedContent><subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>In making a determination of a reasonable assurance of the effectiveness of a device for which an application under section 515 has been submitted, the Secretary shall consider whether the extent of data that otherwise would be required for approval of the application with respect to effectiveness can be reduced through reliance on postmarket controls.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D)</num><clause class="inline"><num value="i">(i) </num><content>The Secretary, upon the written request of any person intending to submit an application under section 515, shall meet with such person to determine the type of valid scientific evidence (within the meaning of subparagraphs (A) and (B)) that will be necessary to demonstrate for purposes of approval of an application the effectiveness of a device for the conditions of use proposed by such person. The written request shall include a detailed description of the device, a detailed description of the proposed conditions of use of the device, a proposed plan for determining whether there is a reasonable assurance of effectiveness, and, if available, <page identifier="/us/stat/111/2337">111 STAT. 2337</page>information regarding the expected performance from the device. Within 30 days after such meeting, the Secretary shall specify in writing the type of valid scientific evidence that will provide a reasonable assurance that a device is effective under the conditions of use proposed by such person.</content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii) </num><content>Any clinical data, including one or more well-controlled investigations, specified in writing by the Secretary for demonstrating a reasonable assurance of device effectiveness shall be specified as result of a determination by the Secretary that such data are necessary to establish device effectiveness. The Secretary shall consider, in consultation with the applicant, the least burdensome appropriate means of evaluating device effectiveness that would have a reasonable likelihood of resulting in approval.</content></clause> <clause class="indent0 fontsize10"><num value="iii">“(iii) </num><content>The determination of the Secretary with respect to the specification of valid scientific evidence under clauses (i) and (ii) shall be binding upon the Secretary, unless such determination by the Secretary could be contrary to the public health.”.</content></clause></subparagraph></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Section 513(i)</inline>.—</heading><content>Section 513(i)(1) (21 U.S.C. 360c(i)(1)) is amended by adding at the end the following: <quotedContent><subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>To facilitate reviews of reports submitted to the Secretary under section 510(k), the Secretary shall consider the extent to which reliance on postmarket controls may expedite the classification of devices under subsection (f)(1) of this section.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>Whenever the Secretary requests information to demonstrate that devices with differing technological characteristics are substantially equivalent, the Secretary shall only request information that is necessary to making substantial equivalence determinations. In making such request, the Secretary shall consider the least burdensome means of demonstrating substantial equivalence and request information accordingly.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E)</num><clause class="inline"><num value="i">(i) </num><chapeau>Any determination by the Secretary of the intended use of a device shall be based upon the proposed labeling submitted in a report for the device under section 510(k). However, when determining that a device can be found substantially equivalent to a legally marketed device, the director of the organizational unit responsible for regulating devices (in this subparagraph referred to as the ‘Director’) may require a statement in labeling that provides appropriate information regarding a use of the device not identified in the proposed labeling if after providing an opportunity for consultation with the person who submitted such report, the Director determines and states in writing—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I) </num><content>that there is a reasonable likelihood that the device will be used for an intended use not identified in the proposed labeling for the device; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II) </num><content>that such use could cause harm.</content></subclause></clause> <subsection class="indent0 fontsize10"><num value="ii">“(ii) </num><chapeau>Such determination shall—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I) </num><content>be provided to the person who submitted the report within 10 days from the date of the notification of the Director’s concerns regarding the proposed labeling;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II) </num><content>specify the limitations on the use of the device not included in the proposed labeling; and</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III) </num><content>find the device substantially equivalent if the requirements of subparagraph (A) are met and if the labeling for such device conforms to the limitations specified in subclause (II).</content></subclause></subsection> <clause class="indent0 fontsize10"><num value="iii">“(iii) </num><content>The responsibilities of the Director under this subparagraph may not be delegated.</content></clause> <page identifier="/us/stat/111/2338">111 STAT. 2338</page> <clause class="indent0 fontsize10"><num value="iv">“(iv) </num><content>This subparagraph has no legal effect after the expiration of the five-year period beginning on the date of the enactment of the Food and Drug Administration Modernization Act of 1997.”.</content></clause></subparagraph></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Section 515(d)</inline>.—</heading><chapeau>Section 515(d) (21 U.S.C. 360e(d)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in paragraph (1)(A), by adding after and below clause (ii) the following: <quotedContent><p class="indent0 fontsize10">“In making the determination whether to approve or deny the application, the Secretary shall rely on the conditions of use included in the proposed labeling as the basis for determining whether or not there is a reasonable assurance of safety and effectiveness, if the proposed labeling is neither false nor misleading. In determining whether or not such labeling is false or misleading, the Secretary shall fairly evaluate all material facts pertinent to the proposed labeling”; and</p></quotedContent></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding after paragraph (5) (as added by section 202(2)) the following: <quotedContent><paragraph class="indent1 fontsize10"><num value="6">“(6)</num><subparagraph class="inline"><num value="A">(A)</num><clause class="inline"><num value="i">(i) </num><content>A supplemental application shall be required for any change to a device subject to an approved application under this subsection that affects safety or effectiveness, unless such change is a modification in a manufacturing procedure or method of manufacturing and the holder of the approved application submits a written notice to the Secretary that describes in detail the change, summarizes the data or information supporting the change, and informs the Secretary that the change has been made under the requirements of section 520(f).</content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii) </num><content>The holder of an approved application who submits a notice under clause (i) with respect to a manufacturing change of a device may distribute the device 30 days after the date on which the Secretary receives the notice, unless the Secretary within such 30-day period notifies the holder that the notice is not adequate and describes such further information or action that is required for acceptance of such change. If the Secretary notifies the holder that a supplemental application is required, the Secretary shall review the supplement within 135 days after the receipt of the supplement. The time used by the Secretary to review the notice of the manufacturing change shall be deducted from the 135-day review period if the notice meets appropriate content requirements for premarket approval supplements.</content></clause></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B)</num><clause class="inline"><num value="i">(i) </num><chapeau>Subject to clause (ii), in reviewing a supplement to an approved application, for an incremental change to the design of a device that affects safety or effectiveness, the Secretary shall approve such supplement if—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I) </num><content>nonclinical data demonstrate that the design modification creates the intended additional capacity, function, or performance of the device; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II) </num><content>clinical data from the approved application and any supplement to the approved application provide a reasonable assurance of safety and effectiveness for the changed device.</content></subclause></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii) </num><content>The Secretary may require, when necessary, additional clinical data to evaluate the design modification of the device to provide a reasonable assurance of safety and effectiveness”.</content></clause></subparagraph></paragraph></quotedContent></content></paragraph></subsection></section> <section><num value="206">SEC. 206. </num><heading>PREMARKET NOTIFICATION.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Section 510</inline>.—</heading><chapeau>Section 510 (21 U.S.C. 360) is amended—</chapeau> <page identifier="/us/stat/111/2339">111 STAT. 2339</page> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subsection (k), in the matter preceding paragraph (1), by adding after “report to the Secretary” the following: “or person who is accredited under section 523(a)”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following subsections: <quotedContent><subsection class="indent0 fontsize10"><num value="l">“(l) </num><content>A report under subsection (k) is not required for a device intended for human use that is exempted from the requirements of this subsection under subsection (m) or is within a type that has been classified into class I under section 513. The exception established in the preceding sentence does not apply to any class I device that is intended for a use which is of substantial importance in preventing impairment of human health, or to any class I device that presents a potential unreasonable risk of illness or injury.</content></subsection> <subsection class="indent0 fontsize10"><num value="m">“(m)</num><paragraph class="inline"><num value="1">(1) </num><content>Not later than 60 days after the date of enactment <sidenote><p class="indent0 firstIndent0 fontsize8">Federal Register, publication.</p></sidenote>of the Food and Drug Administration Modernization Act of 1997, the Secretary shall publish in the Federal Register a list of each type of class II device that does not require a report under subsection (k) to provide reasonable assurance of safety and effectiveness. Each type of class II device identified by the Secretary as not requiring the report shall be exempt from the requirement to provide a report under subsection (k) as of the date of the publication of the list in the Federal Register.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>Beginning on the date that is 1 day after the date of the publication of a list under this subsection, the Secretary may exempt a class II device from the requirement to submit a report under subsection (k), upon the Secretary’s own initiative or a petition of an interested person, if the Secretary determines that such report is not necessary to assure the safety and effectiveness of the device. The Secretary shall publish in the Federal Register <sidenote><p class="indent0 firstIndent0 fontsize8">Federal Register, publication.</p></sidenote>notice of the intent of the Secretary to exempt the device, or of the petition, and provide a 30-day period for public comment. Within 120 days after the issuance of the notice in the Federal Register, <sidenote><p class="indent0 firstIndent0 fontsize8">Federal Register, publication.</p></sidenote>the Secretary shall publish an order in the Federal Register that sets forth the final determination of the Secretary regarding the exemption of the device that was the subject of the notice. If the Secretary fails to respond to a petition within 180 days of receiving it, the petition shall be deemed to be granted.”.</content></paragraph></subsection></quotedContent></content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Section 513(f).</inline>—</heading><content>Section 513(f) (21 U.S.C. 360c(f)) is amended by adding at the end the following: <quotedContent><paragraph class="indent1 fontsize10"><num value="5">“(5) </num><content>The Secretary may not withhold a determination of the initial classification of a device under paragraph (1) because of a failure to comply with any provision of this Act unrelated to a substantial equivalence decision, including a finding that the facility in which the device is manufactured is not in compliance with good manufacturing requirements as set forth in regulations of the Secretary under section 520(f) (other than a finding that there is a substantial likelihood that the failure to comply with such regulations will potentially present a serious risk to human health).”.</content></paragraph></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Section 513(i).</inline>—</heading><chapeau>Section 513(i)(1) (21 U.S.C. 360c(i)), as amended by section 205(b), is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>in subparagraph (A)(ii)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>in subclause (I), by striking “<quotedText>clinical data</quotedText>” and inserting “<quotedText>appropriate clinical or scientific data</quotedText>” and by inserting “<quotedText>or a person accredited under section 523</quotedText>” after “Secretary”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>in subclause (II), by striking “<quotedText>efficacy</quotedText>” and inserting “<quotedText>effectiveness</quotedText>”; and</content></subparagraph></paragraph> <page identifier="/us/stat/111/2340">111 STAT. 2340</page> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following: <quotedContent><subparagraph class="indent2 fontsize10"><num value="F">“(F) </num><content>Not later than 270 days after the date of the enactment of the Food and Drug Administration Modernization Act of 1997, the Secretary shall issue guidance specifying the general principles that the Secretary will consider in determining when a specific intended use of a device is not reasonably included within a general use of such device for purposes of a determination of substantial equivalence under subsection (f) or section 520(1).”.</content></subparagraph></quotedContent></content></paragraph></subsection></section> <section><num value="207">SEC. 207. </num><heading>EVALUATION OF AUTOMATIC CLASS III DESIGNATION.</heading> <chapeau>Section 513(f) (21 U.S.C. 360c(f)), as amended by section 206(b), is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>in paragraph (1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>in subparagraph (B), by striking “<quotedText>paragraph (2)</quotedText>” and inserting “<quotedText>paragraph (3)</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>in the last sentence, by striking “<quotedText>paragraph (2)</quotedText>” and inserting “<quotedText>paragraph (2) or (3)</quotedText>”;</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by inserting after paragraph (1) the following: <quotedContent><paragraph class="indent1 fontsize10"><num value="2">“(2)</num><subparagraph class="inline"><num value="A">(A) </num><content>Any person who submits a report under section 510(k) for a type of device that has not been previously classified under this Act, and that is classified into class III under paragraph (1), may request, within 30 days after receiving written notice of such a classification, the Secretary to classify the device under the criteria set forth in subparagraphs (A) through (C) of subsection (a)(1). The person may, in the request, recommend to the Secretary a classification for the device. Any such request shall describe the device and provide detailed information and reasons for the recommended classification.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B)</num><clause class="inline"><num value="i">(i) </num><content>Not later than 60 days after the date of the submission of the request under subparagraph (A), the Secretary shall by written order classify the device involved. Such classification shall be the initial classification of the device for purposes of paragraph (1) and any device classified under this paragraph shall be a predicate device for determining substantial equivalence under paragraph (1).</content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii) </num><content>A device that remains in class III under this subparagraph shall be deemed to be adulterated within the meaning of section 501(f)(1)(B) until approved under section 515 or exempted from such approval under section 520(g).</content></clause></subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">“(C) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Federal Register, publication.</p></sidenote><content>Within 30 days after the issuance of an order classifying a device under this paragraph, the Secretary shall publish a notice in the Federal Register announcing such classification.”.</content></subparagraph></paragraph></quotedContent></content></paragraph></section> <section><num value="208">SEC. 208. </num><heading>CLASSIFICATION PANELS.</heading> <content>Section 513(b) (21 U.S.C. 360c(b)) is amended by adding at the end the following: <quotedContent><paragraph class="indent1 fontsize10"><num value="5">“(5) </num><content>Classification panels covering each type of device shall be scheduled to meet at such times as may be appropriate for the Secretary to meet applicable statutory deadlines.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6)</num><subparagraph class="inline"><num value="A">(A) </num><chapeau>Any person whose device is specifically the subject of review by a classification panel shall have—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>the same access to data and information submitted to a classification panel (except for data and information that are not available for public disclosure under section 552 of title 5, United States Code) as the Secretary;</content></clause> <page identifier="/us/stat/111/2341">111 STAT. 2341</page> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>the opportunity to submit, for review by a classification panel, information that is based on the data or information provided in the application submitted under section 515 by the person, which information shall be submitted to the Secretary for prompt transmittal to the classification panel; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><content>the same opportunity as the Secretary to participate in meetings of the panel.</content></clause></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><content>Any meetings of a classification panel shall provide adequate time for initial presentations and for response to any differing views by persons whose devices are specifically the subject of a classification panel review, and shall encourage free and open participation by all interested persons.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7) </num><content>After receiving from a classification panel the conclusions and recommendations of the panel on a matter that the panel has reviewed, the Secretary shall review the conclusions and recommendations, shall make a final decision on the matter in accordance with section 515(d)(2), and shall notify the affected persons of the decision in writing and, if the decision differs from the conclusions and recommendations of the panel, shall include the reasons for the difference.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">“(8) </num><content>A classification panel under this subsection shall not be subject to the annual chartering and annual report requirements of the Federal Advisory Committee Act.”.</content></paragraph></quotedContent></content></section> <section><num value="209">SEC. 209. </num><heading>CERTAINTY OF REVIEW TIMEFRAMES; COLLABORATIVE REVIEW PROCESS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Certainty of Review Timeframes.—</inline></heading><content>Section 510 (21 U.S.C. 360), as amended by section 206(a)(2), is amended by adding at the end the following subsection: <quotedContent><subsection class="indent0 fontsize10"><num value="n">“(n) </num><content>The Secretary shall review the report required in subsection (k) and make a determination under section 513(f)(1) not later than 90 days after receiving the report.”.</content></subsection></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Collaborative Review Process</inline>.—</heading><content>Section 515(d) (21 U.S.C. 360e(d)), as amended by section 202(1), is amended by inserting after paragraph (2) the following: <quotedContent><paragraph class="indent1 fontsize10"><num value="3">“(3)</num><subparagraph class="inline"><num value="A">(A)</num><clause class="inline"><num value="i">(i) </num><content>The Secretary shall, upon the written request of an applicant, meet with the applicant, not later than 100 days after the receipt of an application that has been filed as complete under subsection (c), to discuss the review status of the application.</content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii) </num><content>The Secretary shall, in writing and prior to the meeting, provide to the applicant a description of any deficiencies in the application that, at that point, have been identified by the Secretary based on an interim review of the entire application and identify the information that is required to correct those deficiencies.</content></clause> <clause class="indent0 fontsize10"><num value="iii">“(iii) </num><chapeau>The Secretary shall notify the applicant promptly of—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I) </num><content>any additional deficiency identified in the application, or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II) </num><content>any additional information required to achieve completion of the review and final action on the application,</content></subclause> <continuation class="indent0 fontsize10">that was not described as a deficiency in the written description provided by the Secretary under clause (ii).</continuation></clause></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><content>The Secretary and the applicant may, by mutual consent, establish a different schedule for a meeting required under this paragraph.</content></subparagraph></paragraph></quotedContent></content></subsection></section> <page identifier="/us/stat/111/2342">111 STAT. 2342</page> <section><num value="210">SEC. 210. </num><heading>ACCREDITATION OF PERSONS FOR REVIEW OF PREMARKET NOTIFICATION REPORTS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>Subchapter A of chapter V is amended by adding at the end the following: <quotedContent><section><num value="523">“SEC. 523.</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s360m">21 USC 360m</ref>.</p></sidenote><heading>ACCREDITED PERSONS.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><heading><inline class="smallCaps">In General.—</inline></heading> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">Review and classification of devices</inline>.—</heading><content>Not later than 1 year after the date of the enactment of the Food and Drug Administration Modernization Act of 1997, the Secretary shall, subject to paragraph (3), accredit persons for the purpose of reviewing reports submitted under section 510(k) and making recommendations to the Secretary regarding the initial classification of devices under section 513(f)(1).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><chapeau>Requirements regarding review.—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>In making a recommendation to the Secretary under paragraph (1), an accredited person shall notify the Secretary in writing of the reasons for the recommendation.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><heading><inline class="smallCaps">Time period for review</inline>.—</heading><content>Not later than 30 days after the date on which the Secretary is notified under subparagraph (A) by an accredited person with respect to a recommendation of an initial classification of a device, the Secretary shall make a determination with respect to the initial classification.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><heading><inline class="smallCaps">Special rule</inline>.—</heading><content>The Secretary may change the initial classification under section 513(f)(1) that is recommended under paragraph (1) by an accredited person, and in such case shall provide to such person, and the person who submitted the report under section 510(k) for the device, a statement explaining in detail the reasons for the change.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><heading><inline class="smallCaps">Certain devices.</inline>—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>An accredited person may not be used to perform a review of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>a class III device;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>a class II device which is intended to be permanently implantable or life sustaining or life supporting; or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><content>a class II device which requires clinical data in the report submitted under section 510(k) for the device, except that the number of class II devices to which the Secretary applies this clause for a year, less the number of such reports to which clauses (i) and (ii) apply, may not exceed 6 percent of the number that is equal to the total number of reports submitted to the Secretary under such section for such year less the number of such reports to which such clauses apply for such year.</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><heading><inline class="smallCaps">Adjustment</inline>.—</heading><content>In determining for a year the ratio described in subparagraph (A)(iii), the Secretary shall not include in the numerator class III devices that the Secretary reclassified into class II, and the Secretary shall include in the denominator class II devices for which reports under section 510(k) were not required to be submitted by reason of the operation of section 510(m).</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><heading><inline class="smallCaps">Accreditation</inline>.—</heading> <page identifier="/us/stat/111/2343">111 STAT. 2343</page> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">Programs</inline>.—</heading><content>The Secretary shall provide for such accreditation through programs administered by the Food and Drug Administration, other government agencies, or by other qualified nongovernment organizations.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">Accreditation</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>Not later than 180 days after the <sidenote><p class="indent0 firstIndent0 fontsize8">Federal Register, publication.</p></sidenote>date of the enactment of the Food and Drug Administration Modernization Act of 1997, the Secretary shall establish and publish in the Federal Register criteria to accredit or deny accreditation to persons who request to perform the duties specified in subsection (a). The Secretary shall respond to a request for accreditation within 60 days of the receipt of the request. The accreditation of such person shall specify the particular activities under subsection (a) for which such person is accredited.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><heading><inline class="smallCaps">Withdrawal of accreditation</inline>.—</heading><content>The Secretary may suspend or withdraw accreditation of any person accredited under this paragraph, after providing notice and an opportunity for an informal hearing, when such person is substantially not in compliance with the requirements of this section or poses a threat to public health or fails to act in a manner that is consistent with the purposes of this section.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><heading><inline class="smallCaps">Performance auditing</inline>.—</heading><chapeau>To ensure that persons accredited under this section will continue to meet the standards of accreditation, the Secretary shall—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>make onsite visits on a periodic basis to each accredited person to audit the performance of such person; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>take such additional measures as the Secretary determines to be appropriate.</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><heading><inline class="smallCaps">Annual report</inline>.—</heading><content>The Secretary shall include in the annual report required under section 903(g) the names of all accredited persons and the particular activities under subsection (a) for which each such person is accredited and the name of each accredited person whose accreditation has been withdrawn during the year.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><heading><inline class="smallCaps">Qualifications</inline>.—</heading><chapeau>An accredited person shall, at a minimum, meet the following requirements:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>Such person may not be an employee of the Federal Government.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>Such person shall be an independent organization which is not owned or controlled by a manufacturer, supplier, or vendor of devices and which has no organizational, material, or financial affiliation with such a manufacturer, supplier, or vendor.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>Such person shall be a legally constituted entity permitted to conduct the activities for which it seeks accreditation.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>Such person shall not engage in the design, manufacture, promotion, or sale of devices.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E) </num><chapeau>The operations of such person shall be in accordance with generally accepted professional and ethical business practices and shall agree in writing that as a minimum it will—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>certify that reported information accurately reflects data reviewed;</content></clause> <page identifier="/us/stat/111/2344">111 STAT. 2344</page> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>limit work to that for which competence and capacity are available;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><content>treat information received, records, reports, and recommendations as proprietary information;</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv) </num><content>promptly respond and attempt to resolve complaints regarding its activities for which it is accredited; and</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v) </num><content>protect against the use, in carrying out subsection (a) with respect to a device, of any officer or employee of the person who has a financial conflict of interest regarding the device, and annually make available to the public disclosures of the extent to which the person, and the officers and employees of the person, have maintained compliance with requirements under this clause relating to financial conflicts of interest.</content></clause></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>Selection of accredited persons.—The Secretary shall provide each person who chooses to use an accredited person to receive a section 510(k) report a panel of at least two or more accredited persons from which the regulated person may select one for a specific regulatory function.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><heading><inline class="smallCaps">Compensation of accredited persons</inline>.—</heading><content>Compensation for an accredited person shall be determined by agreement between the accredited person and the person who engages the services of the accredited person, and shall be paid by the person who engages such services.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><heading><inline class="smallCaps">Duration</inline>.—</heading><chapeau>The authority provided by this section terminates—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>5 years after the date on which the Secretary notifies Congress that at least 2 persons accredited under subsection (b) are available to review at least 60 percent of the submissions under section 510(k), or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>4 years after the date on which the Secretary notifies Congress that the Secretary has made a determination described in paragraph (2)(B) of subsection (a) for at least 35 percent of the devices that are subject to review under paragraph (1) of such subsection, whichever occurs first.”.</content></paragraph></subsection></section></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Recordkeeping</inline>.—</heading><content>Section 704 (21 U.S.C. 374) is amended by adding at the end the following: <quotedContent><subsection class="indent0 fontsize10"><num value="f">“(f)</num><paragraph class="inline"><num value="1">(1) </num><content>A person accredited under section 523 to review reports made under section 510(k) and make recommendations of initial classifications of devices to the Secretary shall maintain records documenting the training qualifications of the person and the employees of the person, the procedures used by the person for handling confidential information, the compensation arrangements made by the person, and the procedures used by the person to identify and avoid conflicts of interest. Upon the request of an officer or employee designated by the Secretary, the person shall permit the officer or employee, at all reasonable times, to have access to, to copy, and to verify, the records.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>Within 15 days after the receipt of a written request from the Secretary to a person accredited under section 523 for copies of records described in paragraph (1), the person shall produce the copies of the records at the place designated by the Secretary.”.</content></paragraph></subsection></quotedContent></content></subsection> <page identifier="/us/stat/111/2345">111 STAT. 2345</page> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Conforming Amendment.</inline>—</heading><content>Section 301 (21 U.S.C. 331), as amended by section 204(b), is amended by adding at the end the following: <quotedContent><subsection class="indent0 fontsize10"><num value="y">“(y) </num><chapeau>In the case of a drug, device, or food—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>the submission of a report or recommendation by a person accredited under section 523 that is false or misleading in any material respect;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>the disclosure by a person accredited under section 523 of confidential commercial information or any trade secret without the express written consent of the person who submitted such information or secret to such person; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>the receipt by a person accredited under section 523 of a bribe in any form or the doing of any corrupt act by such person associated with a responsibility delegated to such person under this Act.”.</content></paragraph></subsection></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Reports on Program of Accreditation.—</inline></heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s360m">21 USC 360m</ref> note.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Comptroller general</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><heading><inline class="smallCaps">Implementation of program</inline>.—</heading><content>Not later than 5 years after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the Committee on Commerce of the House of Representatives and the Committee on Labor and Human Resources of the Senate a report describing the extent to which the program of accreditation required by the amendment made by subsection (a) has been implemented.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><heading><inline class="smallCaps">Evaluation of program</inline>.—</heading><content>Not later than 6 months prior to the date on which, pursuant to subsection (c) of section 523 of the Federal Food, Drug, and Cosmetic Act (as added by subsection (a)), the authority provided under subsection (a) of such section will terminate, the Comptroller General shall submit to the Committee on Commerce of the House of Representatives and the Committee on Labor and Human Resources of the Senate a report describing the use of accredited persons under such section 523, including an evaluation of the extent to which such use assisted the Secretary in carrying out the duties of the Secretary under such Act with respect to devices, and the extent to which such use promoted actions which are contrary to the purposes of such Act.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Inclusion of certain devices within program</inline>.—</heading><content>Not later than 3 years after the date of the enactment of this Act, the Secretary of Health and Human Services shall submit to the Committee on Commerce of the House of Representatives and the Committee on Labor and Human Resources of the Senate a report providing a determination by the Secretary of whether, in the program of accreditation established pursuant to the amendment made by subsection (a), the limitation established in clause (iii) of section 523(a)(3)(A) of the Federal Food, Drug, and Cosmetic Act (relating to class II devices for which clinical data are required in reports under section 510(k)) should be removed.</content></paragraph></subsection></section> <section><num value="211">SEC. 211. </num><heading>DEVICE TRACKING.</heading> <content>Effective 90 days after the date of the enactment of this Act, section 519(e) (21 U.S.C. 360i(e)) is amended to read as follows: <page identifier="/us/stat/111/2346">111 STAT. 2346</page> <quotedContent><subsection class="indent0 fontsize10"><heading class="centered">“Device Tracking</heading> <num value="e">“(e)</num><paragraph class="inline"><num value="1">(1) </num><chapeau>The Secretary may by order require a manufacturer to adopt a method of tracking a class II or class III device—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>the failure of which would be reasonably likely to have serious adverse health consequences; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><chapeau>which is—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>intended to be implanted in the human body for more than one year, or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>a life sustaining or life supporting device used outside a device user facility.</content></clause></subparagraph></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>Any patient receiving a device subject to tracking under paragraph (1) may refuse to release, or refuse permission to release, the patient’s name, address, social security number, or other identifying information for the purpose of tracking.”.</content></paragraph></subsection></quotedContent></content></section> <section><num value="212">SEC. 212. </num><heading>POSTMARKET SURVEILLANCE.</heading> <content>Effective 90 days after the date of the enactment of this Act, section 522 (21 U.S.C. 3601) is amended to read as follows: <quotedContent><section><heading>“POSTMARKET SURVEILLANCE</heading> <num value="522">“Sec. 522. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>The Secretary may by order require a manufacturer to conduct postmarket surveillance for any device of the manufacturer which is a class II or class III device the failure of which would be reasonably likely to have serious adverse health consequences or which is intended to be—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>implanted in the human body for more than one year, or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>a life sustaining or life supporting device used outside a device user facility.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><heading><inline class="smallCaps">Surveillance Approval</inline>.—</heading><content>Each manufacturer required to conduct a surveillance of a device shall, within 30 days of receiving an order from the Secretary prescribing that the manufacturer is required under this section to conduct such surveillance, submit, for the approval of the Secretary, a plan for the required surveillance. The Secretary, within 60 days of the receipt of such plan, shall determine if the person designated to conduct the surveillance has appropriate qualifications and experience to undertake such surveillance and if the plan will result in the collection of useful data that can reveal unforeseen adverse events or other information necessary to protect the public health. The Secretary, in consultation with the manufacturer, may by order require a prospective surveillance period of up to 36 months. Any determination by the Secretary that a longer period is necessary shall be made by mutual agreement between the Secretary and the manufacturer or, if no agreement can be reached, after the completion of a dispute resolution process as described in section 562.”.</content></subsection></section></quotedContent></content></section> <section><num value="213">SEC. 213. </num><heading>REPORTS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Reports</inline>.—</heading><chapeau>Section 519 (21 U.S.C. 360i) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>in subsection (a)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>in the matter preceding paragraph (1), by striking “<quotedText>manufacturer, importer, or distributor</quotedText>” and inserting “<quotedText>manufacturer or importer</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>in paragraph (4), by striking “<quotedText>manufacturer, importer, or distributor</quotedText>” and inserting “<quotedText>manufacturer or importer</quotedText>”;</content></subparagraph> <page identifier="/us/stat/111/2347">111 STAT. 2347</page> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>in paragraph (7), by adding “<quotedText>and</quotedText>” after the semicolon at the end;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><chapeau>in paragraph (8)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>by striking “<quotedText>manufacturer, importer, or distributor</quotedText>” each place such term appears and inserting “<quotedText>manufacturer or importer</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>by striking the semicolon at the end and inserting a period;</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E) </num><content>by striking paragraph (9); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F) </num><content>by inserting at the end the following sentence: “The Secretary shall by regulation require distributors to keep records and make such records available to the Secretary upon request. Paragraphs (4) and (8) apply to distributors to the same extent and in the same manner as such paragraphs apply to manufacturers and importers.”;</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking subsection (d); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>in subsection (f), by striking “<quotedText>, importer, or distributor</quotedText>” each place it appears and inserting “<quotedText>or importer</quotedText>”.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Registration</inline>.—</heading><chapeau>Section 510(g) (21 U.S.C. 360(g)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by redesignating paragraph (4) as paragraph (5);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting after paragraph (3) the following: <quotedContent><paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>any distributor who acts as a wholesale distributor of devices, and who does not manufacture, repackage, process, or relabel a device; or”; and</content></paragraph></quotedContent></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by adding at the end the following flush sentence: “In this subsection, the term ‘wholesale distributor’ means any person (other than the manufacturer or the initial importer) who distributes a device from the original place of manufacture to the person who makes the final delivery or sale of the device to the ultimate consumer or user.”.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Device User Facilities</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Section 519(b) (21 U.S.C. 360i(b)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><chapeau>in paragraph (1)(C)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>in the first sentence, by striking “<quotedText>a semi-annual basis</quotedText>” and inserting “<quotedText>an annual basis</quotedText>”;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>in the second sentence, by striking “<quotedText>and July 1</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii) </num><content>by striking the matter after and below clause (iv); and</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><chapeau>in paragraph (2)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>in subparagraph (A), by inserting “<quotedText>or</quotedText>” after the comma at the end;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>in subparagraph (B), by striking “<quotedText>, or</quotedText>” at the end and inserting a period; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii) </num><content>by striking subparagraph (C).</content></clause></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Sentinel system</inline>.—</heading><chapeau>Section 519(b) (21 U.S.C. 360i(b)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by redesignating paragraph (5) as paragraph (6); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by inserting after paragraph (4) the following paragraph: <quotedContent><paragraph class="indent1 fontsize10"><num value="5">“(5) </num><chapeau>With respect to device user facilities:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>The Secretary shall by regulation plan and implement a program under which the Secretary limits user reporting <page identifier="/us/stat/111/2348">111 STAT. 2348</page>under paragraphs (1) through (4) to a subset of user facilities that constitutes a representative profile of user reports for device deaths and serious illnesses or serious injuries.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>During the period of planning the program under subparagraph (A), paragraphs (1) through (4) continue to apply.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>During the period in which the Secretary is providing for a transition to the full implementation of the program, paragraphs (1) through (4) apply except to the extent that the Secretary determines otherwise.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>On and after the date on which the program is fully implemented, paragraphs (1) through (4) do not apply to a user facility unless the facility is included in the subset referred to in subparagraph (A).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E) </num><content>Not later than 2 years after the date of the enactment of the Food and Drug Administration Modernization Act of 1997, the Secretary shall submit to the Committee on Commerce of the House of Representatives, and to the Committee on Labor and Human Resources of the Senate, a report describing the plan developed by the Secretary under subparagraph (A) and the progress that has been made toward the implementation of the plan.”.</content></subparagraph></paragraph></quotedContent></content></subparagraph></paragraph></subsection></section> <section><num value="214">SEC. 214. </num><heading>PRACTICE OF MEDICINE.</heading> <content>Chapter IX is amended by adding at the end the following: <quotedContent><section><num value="906">“SEC. 906. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s396">21 USC 396</ref>.</p></sidenote><heading>PRACTICE OF MEDICINE.</heading> <content>“Nothing in this Act shall be construed to limit or interfere with the authority of a health care practitioner to prescribe or administer any legally marketed device to a patient for any condition or disease within a legitimate health care practitioner-patient relationship. This section shall not limit any existing authority of the Secretary to establish and enforce restrictions on the sale or distribution, or in the labeling, of a device that are part of a determination of substantial equivalence, established as a condition of approval, or promulgated through regulations. Further, this section shall not change any existing prohibition on the promotion of unapproved uses of legally marketed devices.”.</content></section></quotedContent></content></section> <section><num value="215">SEC. 215. </num><heading>NONINVASIVE BLOOD GLUCOSE METER.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>The Congress finds that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>diabetes and its complications are a leading cause of death by disease in America;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>diabetes affects approximately 16,000,000 Americans and another 650,000 will be diagnosed in 1997;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>the total health care-related costs of diabetes total nearly $100,000,000,000 per year;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>diabetes is a disease that is managed and controlled on a daily basis by the patient;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>the failure to properly control and manage diabetes results in costly and often fatal complications including but not limited to blindness, coronary artery disease, and kidney failure;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>blood testing devices are a critical tool for the control and management of diabetes, and existing blood testing devices require repeated piercing of the skin;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>the pain associated with existing blood testing devices creates a disincentive for people with diabetes to test blood glucose levels, particularly children;</content></paragraph> <page identifier="/us/stat/111/2349">111 STAT. 2349</page> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>a safe and effective noninvasive blood glucose meter would likely improve control and management of diabetes by increasing the number of tests conducted by people with diabetes, particularly children; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><content>the Food and Drug Administration is responsible for reviewing all applications for new medical devices in the United States.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of Congress.—</inline></heading><content>It is the sense of the Congress that the availability of a safe, effective, noninvasive blood glucose meter would greatly enhance the health and well-being of all people with diabetes across America and the world.</content></subsection></section> <section><num value="216">SEC. 216. </num><heading>USE OF DATA RELATING TO PREMARKET APPROVAL; PRODUCT DEVELOPMENT PROTOCOL.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Use of Data Relating to Premarket Approval</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 520(h)(4) (21 U.S.C. 360j(h)(4)) is amended to read as follows: <quotedContent><paragraph class="indent1 fontsize10"><num value="4">“(4)</num><subparagraph class="inline"><num value="A">(A) </num><chapeau>Any information contained in an application for premarket approval filed with the Secretary pursuant to section 515(c) (including information from clinical and preclinical tests or studies that demonstrate the safety and effectiveness of a device, but excluding descriptions of methods of manufacture and product composition and other trade secrets) shall be available, 6 years after the application has been approved by the Secretary, for use by the Secretary in—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>approving another device;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>determining whether a product development protocol has been completed, under section 515 for another device;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><content>establishing a performance standard or special control under this Act; or</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv) </num><content>classifying or reclassifying another device under section 513 and subsection (1)(2).</content></clause></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><content>The publicly available detailed summaries of information respecting the safety and effectiveness of devices required by paragraph (1)(A) shall be available for use by the Secretary as the evidentiary basis for the agency actions described in subparagraph (A).”.</content></subparagraph></paragraph></quotedContent></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Conforming amendments</inline>.—</heading><chapeau>Section 517(a) (21 U.S.C. 360g(a)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>in paragraph (8), by adding “<quotedText>or</quotedText>” at the end;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>in paragraph (9), by striking “<quotedText>, or</quotedText>” and inserting a comma; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>by striking paragraph (10).</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Product Development Protocol</inline>.—</heading><chapeau>Section 515(f)(2) (21 U.S.C. 360e(f)(2)) is amended by striking “he shall” and all that follows and inserting the following: “the Secretary—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>may, at the initiative of the Secretary, refer the proposed protocol to the appropriate panel under section 513 for its recommendation respecting approval of the protocol; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>shall so refer such protocol upon the request of the submitter, unless the Secretary finds that the proposed protocol and accompanying data which would be reviewed by such panel substantially duplicate a product development protocol and accompanying data which have previously been reviewed by such a panel.”.</content></subparagraph></subsection></section> <page identifier="/us/stat/111/2350">111 STAT. 2350</page> <section><num value="217">SEC. 217. </num><heading>CLARIFICATION OF THE NUMBER OF REQUIRED CLINICAL INVESTIGATIONS FOR APPROVAL.</heading> <content>Section 513(a)(3)(A) (21 U.S.C. 360c(a)(3)(A)) is amended by striking “<quotedText>clinical investigations</quotedText>” and inserting “<quotedText>1 or more clinical investigations</quotedText>”.</content></section> <num value="I">TITLE III—</num><heading>IMPROVING REGULATION OF FOOD</heading> <section><num value="301">SEC. 301. </num><heading>FLEXIBILITY FOR REGULATIONS REGARDING CLAIMS.</heading> <content>Section 403(r) (21 U.S.C. 343(r)) is amended by adding at the end the following: <quotedContent><paragraph class="indent1 fontsize10"><num value="7">“(7) </num><chapeau>The Secretary may make proposed regulations issued under this paragraph effective upon publication pending consideration of public comment and publication of a final regulation if the Secretary determines that such action is necessary—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><chapeau>to enable the Secretary to review and act promptly on petitions the Secretary determines provide for information necessary to—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>enable consumers to develop and maintain healthy dietary practices;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>enable consumers to be informed promptly and effectively of important new knowledge regarding nutritional and health benefits of food; or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><content>ensure that scientifically sound nutritional and health information is provided to consumers as soon as possible; or</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>to enable the Secretary to act promptly to ban or modify a claim under this paragraph.</content></subparagraph> <continuation class="indent0 fontsize10">Such proposed regulations snail be deemed final agency action for purposes of judicial review.”.</continuation></paragraph></quotedContent></content></section> <section><num value="302">SEC. 302. </num><heading>PETITIONS FOR CLAIMS.</heading> <chapeau>Section 403(r)(4)(A)(i) (21 U.S.C. 343(r)(4)(A)(i)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by adding after the second sentence the following: “If the Secretary does not act within such 100 days, the petition shall be deemed to be denied unless an extension is mutually agreed upon by the Secretary and the petitioner.”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in the fourth sentence (as amended by paragraph (1)) by inserting immediately before the comma the following: “or the petition is deemed to be denied”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by adding at the end the following: “<quotedText>If the Secretary does not act within such 90 days, the petition shall be deemed to be denied unless an extension is mutually agreed upon by the Secretary and the petitioner. If the Secretary issues a proposed regulation, the rulemaking shall be completed within 540 days of the date the petition is received by the Secretary. If the Secretary does not issue a regulation within such 540 days, the Secretary shall provide the Committee on Commerce of the House of Representatives and the Committee on Labor and Human Resources of the Senate the reasons action on the regulation did not occur within such 540 days.</quotedText>”.</content></paragraph></section> <section><num value="303">SEC. 303. </num><heading>HEALTH CLAIMS FOR FOOD PRODUCTS.</heading> <content>Section 403(r)(3) (21 U.S.C. 343(r)(3)) is amended by adding at the end thereof the following: <page identifier="/us/stat/111/2351">111 STAT. 2351</page> <quotedContent><subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><chapeau>Notwithstanding the provisions of clauses (A)(i) and (B), a claim of the type described in subparagraph (1)(B) which is not authorized by the Secretary in a regulation promulgated in accordance with clause (B) shall be authorized and may be made with respect to a food if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>a scientific body of the United States Government with official responsibility for public health protection or research directly relating to human nutrition (such as the National Institutes of Health or the Centers for Disease Control and Prevention) or the National Academy of Sciences or any of its subdivisions has published an authoritative statement, which is currently in effect, about the relationship between a nutrient and a disease or health-related condition to which the claim refers;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>a person has submitted to the Secretary, at least 120 days (during which the Secretary may notify any person who is making a claim as authorized by clause (C) that such person has not submitted all the information required by such clause) before the first introduction into interstate commerce of the food with a label containing the claim, (I) a notice of the claim, which shall include the exact words used in the claim and shall include a concise description of the basis upon which such person relied for determining that the requirements of subclause (i) have been satisfied, (II) a copy of the statement referred to in subclause (i) upon which such person relied in making the claim, and (III) a balanced representation of the scientific literature relating to the relationship between a nutrient and a disease or health-related condition to which the claim refers;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><content>the claim and the food for which the claim is made are in compliance with clause (A)(ii) and are otherwise in compliance with paragraph (a) and section 201(n); and</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv) </num><content>the claim is stated in a manner so that the claim is an accurate representation of the authoritative statement referred to in subclause (i) and so that the claim enables the public to comprehend the information provided in the claim and to understand the relative significance of such information in the context of a total daily diet.</content></clause> <continuation class="indent0 fontsize10">For purposes of this clause, a statement shall be regarded as an authoritative statement of a scientific body described in subclause (i) only if the statement is published by the scientific body and shall not include a statement of an employee of the scientific body made in the individual capacity of the employee.</continuation></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><chapeau>A claim submitted under the requirements of clause (C) may be made until—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><chapeau>such time as the Secretary issues a regulation under the standard in clause (B)(i)—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I) </num><content>prohibiting or modifying the claim and the regulation has become effective, or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II) </num><content>finding that the requirements of clause (C) have not been met, including finding that the petitioner has not submitted all the information required by such clause; or</content></subclause></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>a district court of the United States in an enforcement proceeding under chapter III has determined that the requirements of clause (C) have not been met.”.</content></clause></subparagraph></quotedContent></content></section> <page identifier="/us/stat/111/2352">111 STAT. 2352</page> <section><num value="304">SEC. 304. </num><heading>NUTRIENT CONTENT CLAIMS.</heading> <content>Section 403(f)(2) (21 U.S.C. 343(r)(2)) is amended by adding at the end the following: <quotedContent><subparagraph class="indent2 fontsize10"><num value="G">“(G) </num><chapeau>A claim of the type described in subparagraph (1)(A) for a nutrient, for which the Secretary has not promulgated a regulation under clause (A)(i), shall be authorized and may be made with respect to a food if—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>a scientific body of the United States Government with official responsibility for public health protection or research directly relating to human nutrition (such as the National Institutes of Health or the Centers for Disease Control and Prevention) or the National Academy of Sciences or any of its subdivisions has published an authoritative statement, which is currently in effect, which identifies the nutrient level to which the claim refers;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>a person has submitted to the Secretary, at least 120 days (during which the Secretary may notify any person who is making a claim as authorized by clause (C) that such person has not submitted all the information required by such clause) before the first introduction into interstate commerce of the food with a label containing the claim, (I) a notice of the claim, which shall include the exact words used in the claim and shall include a concise description of the basis upon which such person relied for determining that the requirements of subclause (i) have been satisfied, (II) a copy of the statement referred to in subclause (i) upon which such person relied in making the claim, and (III) a balanced representation of the scientific literature relating to the nutrient level to which the claim refers;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><content>the claim and the food for which the claim is made are in compliance with clauses (A) and (B), and are otherwise in compliance with paragraph (a) and section 201(n); and</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv) </num><content>the claim is stated in a manner so that the claim is an accurate representation of the authoritative statement referred to in subclause (i) and so that the claim enables the public to comprehend the information provided in the claim and to understand the relative significance of such information in the context of a total daily diet.</content></clause> <continuation class="indent0 fontsize10">For purposes of this clause, a statement shall be regarded as an authoritative statement of a scientific body described in subclause (i) only if the statement is published by the scientific body and shall not include a statement of an employee of the scientific body made in the individual capacity of the employee.</continuation></subparagraph> <subparagraph class="indent2 fontsize10"><num value="H">“(H) </num><chapeau>A claim submitted under the requirements of clause (G) may be made until—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><chapeau>such time as the Secretary issues a regulation—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I) </num><content>prohibiting or modifying the claim and the regulation has become effective, or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II) </num><content>finding that the requirements of clause (G) have not been met, including finding that the petitioner had not submitted all the information required by such clause; or</content></subclause></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>a district court of the United States in an enforcement proceeding under chapter III has determined that the requirements of clause (G) have not been met.”.</content></clause></subparagraph></quotedContent></content></section> <page identifier="/us/stat/111/2353">111 STAT. 2353</page> <section><num value="305">SEC. 305. </num><heading>REFERRAL STATEMENTS.</heading> <content>Section 403(r)(2)(B) (21 U.S.C. 343(r)(2)(B)) is amended to read as follows: <quotedContent><subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>If a claim described in subparagraph (1)(A) is made with respect to a nutrient in a food and the Secretary makes a determination that the food contains a nutrient at a level that increases to persons in the general population the risk of a disease or health-related condition that is diet related, the label or labeling of such food shall contain, prominently and in immediate proximity to such claim, the following statement: ‘See nutrition information for _____ content.’ The blank shall identify the nutrient associated with the increased disease or health-related condition risk. In making the determination described in this clause, the Secretary shall take into account the significance of the food in the total daily diet”.</content></subparagraph></quotedContent></content></section> <section><num value="306">SEC. 306. </num><heading>DISCLOSURE OF IRRADIATION.</heading> <content>Chapter IV (21 U.S.C. 341 et seq.) is amended by inserting after section 403B the following: <quotedContent><section><heading>“DISCLOSURE</heading> <num value="403C">“Sec. 403C. </num><subsection class="inline"><num value="a">(a) </num><content>No provision of section 201(n), 403(a), or 409 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s343–3">21 USC 343–3</ref>.</p></sidenote>shall be construed to require on the label or labeling of a food a separate radiation disclosure statement that is more prominent than the declaration of ingredients required by section 403(i)(2).</content></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>In this section, the term ‘radiation disclosure statement’ means a written statement that discloses that a food has been intentionally subject to radiation”.</content></subsection></section></quotedContent></content></section> <section><num value="307">SEC. 307. </num><heading>IRRADIATION PETITION.</heading> <content>Not later than 60 days following the date of the enactment of this Act, the Secretary of Health and Human Services shall make a fined determination on any petition pending with the Food and Drug Administration that would permit the irradiation of red meat under section 409(b)(1) of the Federal Food, Drug, and Cosmetic Act. If the Secretary does not make such determination, the Secretary shall, not later than 60 days following the date of the enactment of this Act, provide the Committee on Commerce of the House of Representatives and the Committee on Labor and Human Resources of the Senate an explanation of the process followed by the Food and Drug Administration in reviewing the petition referred to in paragraph (1) and the reasons action on the petition was delayed.</content></section> <section><num value="308">SEC. 308. </num><heading>GLASS AND CERAMIC WARE.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s348">21 USC 348</ref> note.</p></sidenote> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">In General.</inline>—</heading><content>The Secretary may not implement any requirement which would ban, as an unapproved food additive, lead and cadmium based enamel in the lip and rim area of glass and ceramic ware before the expiration of one year after the date such requirement is published.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Lead and Cadmium Based Enamel</inline>.—</heading><chapeau>Unless the Secretary determines, based on available data, that lead and cadmium based enamel on glass and ceramic ware—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>which has less than 60 millimeters of decorating area below the external rim, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>which is not, by design, representation, or custom of usage intended for use by children,</content></paragraph> <page identifier="/us/stat/111/2354">111 STAT. 2354</page> <continuation class="indent0 fontsize10">is unsafe, the Secretary shall not take any action before January 1, 2003, to ban lead and cadmium based enamel on such glass and ceramic ware. Any action taken after January 1, 2003, to ban such enamel on such glass and ceramic ware as an unapproved food additive shall be taken by regulation and such regulation shall provide that such products shall not be removed from the market before 1 year after publication of the final regulation.</continuation></subsection></section> <section><num value="309">SEC. 309. </num><heading>FOOD CONTACT SUBSTANCES.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Food Contact Substances</inline>.—</heading><chapeau>Section 409(a) (21 U.S.C. 348(a)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>in paragraph (1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking “<quotedText>subsection (i)</quotedText>” and inserting “<quotedText>subsection (j)</quotedText>”, and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking at the end “or”;</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking the period at the end of paragraph (2) and inserting “<quotedText>; or</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by inserting after paragraph (2) the following: <quotedContent><paragraph class="indent1 fontsize10"><num value="3">“(3) </num><chapeau>in the case of a food auditive as defined in this Act that is a food contact substance, there is—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>in effect, and such substance and the use of such substance are in conformity with, a regulation issued under this section prescribing the conditions under which such additive may be safely used; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>a notification submitted under subsection (h) that is effective.”; and</content></subparagraph></paragraph></quotedContent></content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>by striking the matter following paragraph (3) (as added by paragraph (3)) and inserting the following flush sentence: “<quotedContent>While such a regulation relating to a food additive, or such a notification under subsection (h)(1) relating to a food additive that is a food contact substance, is in effect, and has not been revoked pursuant to subsection (i), a food shall not, by reason of bearing or containing such a food additive in accordance with the regulation or notification, be considered adulterated under section 402(a)(1).</quotedContent>”.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Notification for Food Contact Substances</inline>.—</heading><chapeau>Section 409 (21 U.S.C. 348), as amended by subsection (a), is further amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by redesignating subsections (h) and (i), as subsections (i) and (j), respectively;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting after subsection (g) the following: <quotedContent><subsection class="indent0 fontsize10"><heading class="centered">“Notification Relating to a Food Contact Substance</heading> <num value="h">“(h)</num><paragraph class="inline"><num value="1">(1) </num><content>Subject to such regulations as may be promulgated under paragraph (3), a manufacturer or supplier of a food contact substance may, at least 120 days prior to the introduction or delivery for introduction into interstate commerce of the food contact substance, notify the Secretary of the identity and intended use of the food contact substance, and of the determination of the manufacturer or supplier that the intended use of such food contact substance is safe under the standard described in subsection (c)(3)(A). The notification shall contain the information that forms the basis of the determination and all information required to be submitted by regulations promulgated by the Secretary.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num><subparagraph class="inline"><num value="A">(A) </num><content>A notification submitted under paragraph (1) shall become effective 120 days after the date of receipt by the Secretary and the food contact substance may be introduced or delivered for introduction into interstate commerce, unless the Secretary <page identifier="/us/stat/111/2355">111 STAT. 2355</page>makes a determination within the 120-day period that, based on the data and information before the Secretary, such use of the food contact substance has not been shown to be safe under the standard described in subsection (c)(3)(A), and informs the manufacturer or supplier of such determination.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><content>A decision by the Secretary to object to a notification shall constitute final agency action subject to judicial review.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">“(C) </num><content>In this paragraph, the term ‘food contact substance’ means the substance that is the subject of a notification submitted under paragraph (1), and does not include a similar or identical substance manufactured or prepared by a person other than the manufacturer identified in the notification.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num><subparagraph class="inline"><num value="A">(A) </num><content>The process in this subsection shall be utilized for authorizing the marketing of a food contact substance except where the Secretary determines that submission and review of a petition under subsection (b) is necessary to provide adequate assurance of safety, or where the Secretary and any manufacturer or supplier agree that such manufacturer or supplier may submit a petition under subsection (b).</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><content>The Secretary is authorized to promulgate regulations to identify the circumstances in which a petition shall be filed under subsection (b), and shall consider criteria such as the probable consumption of such food contact substance and potential toxicity of the food contact substance in determining the circumstances in which a petition shall be filed under subsection (b).</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>The Secretary shall keep confidential any information provided in a notification under paragraph (1) for 120 days after receipt by the Secretary of the notification. After the expiration of such 120 days, the information shall be available to any interested party except for any matter in the notification that is a trade secret or confidential commercial information.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5)</num><subparagraph class="inline"><num value="A">(A)</num><clause class="inline"><num value="i">(i) </num><chapeau>Except as provided in clause (ii), the notification program established under this subsection shall not operate in any fiscal year unless—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I) </num><content>an appropriation equal to or exceeding the applicable amount under clause (iv) is made for such fiscal year for carrying out such program in such fiscal year; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II) </num><content>the Secretary certifies that the amount appropriated for such fiscal year for the Center for Food Safety and Applied Nutrition of the Food and Drug Administration (exclusive of the appropriation referred to in subclause (I)) equals or exceeds the amount appropriated for the Center for fiscal year 1997, excluding any amount appropriated for new programs.</content></subclause></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii) </num><chapeau>The Secretary shall, not later than April 1, 1999, begin accepting and reviewing notifications submitted under the notification program established under this subsection if—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I) </num><content>an appropriation equal to or exceeding the applicable amount under clause (iii) is made for the last six months of fiscal year 1999 for carrying out such program during such period; and</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II) </num><content>the Secretary certifies that the amount appropriated for such period for the Center for Food Safety and Applied Nutrition of the Food and Drug Administration (exclusive of the appropriation referred to in subclause (I)) equals or exceeds an amount equivalent to one-half the amount appropriated for the Center for fiscal year 1997, excluding any amount appropriated for new programs.</content></subclause></clause> <page identifier="/us/stat/111/2356">111 STAT. 2356</page> <clause class="indent0 fontsize10"><num value="iii">“(iii) </num><content>For the last six months of fiscal year 1999, the applicable amount under this clause is $1,500,000, or the amount specified in the budget request of the President for the six-month period involved for carrying out the notification program in fiscal year 1999, whichever is less.</content></clause> <clause class="indent0 fontsize10"><num value="iv">“(iv) </num><content>For fiscal year 2000 and subsequent fiscal years, the applicable amount under this clause is $3,000,000, or the amount specified in the budget request of the President for the fiscal year involved for carrying out the notification program under this subsection, whichever is less.</content></clause></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><content>For purposes of carrying out the notification program under this subsection, there are authorized to be appropriated such sums as may be necessary for each of the fiscal years 1999 through fiscal year 2003, except that such authorization of appropriations is not effective for a fiscal year for any amount that is less than the applicable amount under clause (iii) or (iv) of subparagraph (A), whichever is applicable.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">“(C) </num><content>Not later than April 1 of fiscal year 1998 and February 1 of each subsequent fiscal year, the Secretary shall submit a report to the Committees on Appropriations of the House of Representatives and the Senate, the Committee on Commerce of the House of Representatives, and the Committee on Labor and Human Resources of the Senate that provides an estimate of the Secretary of the costs of carrying out the notification program established under this subsection for the next fiscal year.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6) </num><content>In this section, the term ‘food contact substance’ means any substance intended for use as a component of materials used in manufacturing, packing, packaging, transporting, or holding food if such use is not intended to have any technical effect in such food.”;</content></paragraph></subsection></quotedContent></content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>in subsection (i), as so redesignated by paragraph (1), by adding at the end the following: “<quotedText>The Secretary shall by regulation prescribe the procedure by which the Secretary may deem a notification under subsection (h) to no longer be effective.</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>in subsection (j), as so redesignated by paragraph (1), by striking “<quotedText>subsections (b) to (h)</quotedText>” and inserting “<quotedText>subsections (b) to (i)</quotedText>”.</content></paragraph></subsection></section> <num value="I">TITLE IV—</num><heading>GENERAL PROVISIONS</heading> <section><num value="401">SEC. 401. </num><heading>DISSEMINATION OF INFORMATION ON NEW USES.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>Chapter V (21 U.S.C. 351 et seq.) is amended by inserting after subchapter C the following: <quotedContent> <subchapter><num value="D">“Subchapter D—</num><heading>Dissemination of Treatment Information</heading> <section><num value="551">“SEC. 551. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s360aaa">21 USC 360aaa</ref>.</p></sidenote><heading>REQUIREMENTS FOR DISSEMINATION OF TREATMENT INFORMATION ON DRUGS OR DEVICES.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Notwithstanding sections 301(d), 502(f), and 505, and section 351 of the Public Health Service Act (42 U.S.C. 262), a manufacturer may disseminate to—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>a health care practitioner;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>a pharmacy benefit manager;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>a health insurance issuer;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>a group health plan; or</content></paragraph> <page identifier="/us/stat/111/2357">111 STAT. 2357</page> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><content>a Federal or State governmental agency;</content></paragraph> <continuation class="indent0 fontsize10">written information concerning the safety, effectiveness, or benefit of a use not described in the approved labeling of a drug or device if the manufacturer meets the requirements of subsection (b).</continuation></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><heading><inline class="smallCaps">Specific Requirements.</inline>—</heading><chapeau>A manufacturer may disseminate information under subsection (a) on a new use only if—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num><subparagraph class="inline"><num value="A">(A) </num><content>in the case of a drug, there is in effect for the drug an application filed under subsection (b) or (j) of section 505 or a biologics license issued under section 351 of the Public Health Service Act; or</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><content>in the case of a device, the device is being commercially distributed in accordance with a regulation under subsection (d) or (e) of section 513, an order under subsection (f) of such section, or the approval of an application under section 515;</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>the information meets the requirements of section 552;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>the information to be disseminated is not derived from clinical research conducted by another manufacturer or if it was derived from research conducted by another manufacturer, the manufacturer disseminating the information has the permission of such other manufacturer to make the dissemination;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><chapeau>the manufacturer has, 60 days before such dissemination, submitted to the Secretary—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>a copy of the information to be disseminated; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>any clinical trial information the manufacturer has relating to the safety or effectiveness of the new use, any reports of clinical experience pertinent to the safety of the new use, and a summary of such information;</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><content>the manufacturer has complied with the requirements of section 554 (relating to a supplemental application for such use);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6) </num><chapeau>the manufacturer includes along with the information to be disseminated under this subsection—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><chapeau>a prominently displayed statement that discloses—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>that the information concerns a use of a drug or device that has not been approved or cleared by the Food and Drug Administration;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>if applicable, that the information is being disseminated at the expense of the manufacturer;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><content>if applicable, the name of any authors of the information who are employees of, consultants to, or have received compensation from, the manufacturer, or who have a significant financial interest in the manufacturer;</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv) </num><content>the official labeling for the drug or device and all updates with respect to the labeling;</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v) </num><content>if applicable, a statement that there are products or treatments that have been approved or cleared for the use that is the subject of the information being disseminated pursuant to subsection (a)(1); and</content></clause> <clause class="indent3 fontsize10"><num value="vi">“(vi) </num><content>the identification of any person that has provided funding for the conduct of a study relating to the new use of a drug or device for which such information is being disseminated; and</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>a bibliography of other articles from a scientific reference publication or scientific or medical journal that <page identifier="/us/stat/111/2358">111 STAT. 2358</page>have been previously published about the use of the drug or device covered by the information disseminated (unless the information already includes such bibliography).</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><heading><inline class="smallCaps">Additional Information</inline>.—</heading><chapeau>If the Secretary determines, after providing notice of such determination and an opportunity for a meeting with respect to such determination, that the information submitted by a manufacturer under subsection (b)(3)(B), with respect to the use of a drug or device for which the manufacturer intends to disseminate information, fails to provide data, analyses, or other written matter that is objective and balanced, the Secretary may require the manufacturer to disseminate—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>additional objective and scientifically sound information that pertains to the safety or effectiveness of the use and is necessary to provide objectivity and balance, including any information that the manufacturer has submitted to the Secretary or, where appropriate, a summary of such information or any other information that the Secretary has authority to make available to the public; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>an objective statement of the Secretary, based on data or other scientifically sound information available to the Secretary, that bears on the safety or effectiveness of the new use of the drug or device.</content></paragraph></subsection></section> <section><num value="552">“SEC. 552. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s360aaa-1">21 USC 360aaa-1</ref>.</p></sidenote><heading>INFORMATION AUTHORIZED TO BE DISSEMINATED.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><heading><inline class="smallCaps">Authorized Information.</inline>—</heading><chapeau>A manufacturer may disseminate information under section 551 on a new use only if the information—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><chapeau>is in the form of an unabridged—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>reprint or copy of an article, peer-reviewed by experts qualified by scientific training or experience to evaluate the safety or effectiveness of the drug or device involved, which was published in a scientific or medical journal (as defined in section 556(5)), which is about a clinical investigation with respect to the drug or device, and which would be considered to be scientifically sound by such experts; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>reference publication, described in subsection (b), that includes information about a clinical investigation with respect to the drug or device that would be considered to be scientifically sound by experts qualified by scientific training or experience to evaluate the safety or effectiveness of the drug or device that is the subject of such a clinical investigation; and</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>is not false or misleading and would not pose a significant risk to the public health.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><heading><inline class="smallCaps">Reference Publication.</inline>—</heading><chapeau>A reference publication referred to in subsection (a)(1)(B) is a publication that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>has not been written, edited, excerpted, or published specifically for, or at the request of, a manufacturer of a drug or device;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>has not been edited or significantly influenced by such a manufacturer;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>is not solely distributed through such a manufacturer but is generally available in bookstores or other distribution channels where medical textbooks are sold;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>does not focus on any particular drug or device of a manufacturer that disseminates information under section <page identifier="/us/stat/111/2359">111 STAT. 2359</page>551 and does not have a primary focus on new uses of drugs or devices that are marketed or under investigation by a manufacturer supporting the dissemination of information; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><content>presents materials that are not false or misleading.</content></paragraph></subsection></section> <section><num value="553">“SEC. 553. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s360aaa-2">21 USC 360aaa-2</ref>.</p></sidenote><heading>ESTABLISHMENT OF LIST OF ARTICLES AND PUBLICATIONS DISSEMINATED AND LIST OF PROVIDERS THAT RECEIVED ARTICLES AND REFERENCE PUBLICATIONS.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><heading><inline class="smallCaps">In General.</inline>—</heading><chapeau>A manufacturer may disseminate information under section 551 on a new use only if the manufacturer prepares and submits to the Secretary biannually—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>a list containing the titles of the articles and reference publications relating to the new use of drugs or devices that were disseminated by the manufacturer to a person described in section 551(a) for the 6-month period preceding the date on which the manufacturer submits the list to the Secretary; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>a list that identifies the categories of providers (as described in section 551(a)) that received the articles and reference publications for the 6-month period described in paragraph (1).</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><heading><inline class="smallCaps">Records</inline>.—</heading><content>A manufacturer that disseminates information under section 551 shall keep records that may be used by the manufacturer when, pursuant to section 555, such manufacturer is required to take corrective action and shall be made available to the Secretary, upon request, for purposes of ensuring or taking corrective action pursuant to such section. Such records, at the Secretary’s discretion, may identify the recipient of information provided pursuant to section 551 or the categories of such recipients.</content></subsection></section> <section><num value="554">“SEC. 554. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s360aaa-3">21 USC 360aaa-3</ref>.</p></sidenote><heading>REQUIREMENT REGARDING SUBMISSION OF SUPPLEMENTAL APPLICATION FOR NEW USE; EXEMPTION FROM REQUIREMENT.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>A manufacturer may disseminate information under section 551 on a new use only if—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num><subparagraph class="inline"><num value="A">(A) </num><content>the manufacturer has submitted to the Secretary a supplemental application for such use; or</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><content>the manufacturer meets the condition described in subsection (b) or (c) (relating to a certification that the manufacturer will submit such an application); or</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>there is in effect for the manufacturer an exemption under subsection (d) from the requirement of paragraph (1).</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><heading><inline class="smallCaps">Certification on Supplemental Application; Condition in Case of Completed Studies</inline>.—</heading><chapeau>For purposes of subsection (a)(1)(B), a manufacturer may disseminate information on a new use if the manufacturer has submitted to the Secretary an application containing a certification that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>the studies needed for the submission of a supplemental application for the new use have been completed; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>the supplemental application will be submitted to the Secretary not later than 6 months after the date of the initial dissemination of information under section 551.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><heading><inline class="smallCaps">Certification on Supplemental Application; Condition in Case of Planned Studies.</inline>—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of subsection (a)(1)(B), a manufacturer may disseminate information on a new use if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><chapeau>the manufacturer has submitted to the Secretary an application containing—</chapeau> <page identifier="/us/stat/111/2360">111 STAT. 2360</page> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>a proposed protocol and schedule for conducting the studies needed for the submission of a supplemental application for the new use; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>a certification that the supplemental application will be submitted to the Secretary not later than 36 months after the date of the initial dissemination of information under section 551 (or, as applicable, not later than such date as the Secretary may specify pursuant to an extension under paragraph (3)); and</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>the Secretary has determined that the proposed protocol is adequate and that the schedule for completing such studies is reasonable.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">Progress reports on studies</inline>.—</heading><content>A manufacturer that submits to the Secretary an application under paragraph (1) shall submit to the Secretary periodic reports describing the status of the studies involved.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><heading><inline class="smallCaps">Extension of time regarding planned studies</inline>.—</heading><chapeau>The period of 36 months authorized in paragraph (1)(A)(ii) for the completion of studies may be extended by the Secretary if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>the Secretary determines that the studies needed to submit such an application cannot be completed and submitted within 36 months; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>the manufacturer involved submits to the Secretary a written request for the extension and the Secretary determines that the manufacturer has acted with due diligence to conduct the studies in a timely manner, except that an extension under this subparagraph may not be provided for more than 24 additional months.</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><heading><inline class="smallCaps">Exemption From Requirement of Supplemental Application.</inline>—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of subsection (a)(2), a manufacturer may disseminate information on a new use if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>the manufacturer has submitted to the Secretary an application for an exemption from meeting the requirement of subsection (a)(1); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B)</num><clause class="inline"><num value="i">(i) </num><content>the Secretary has approved the application in accordance with paragraph (2); or</content></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii) </num><content>the application is deemed under paragraph (3)(A) to have been approved (unless such approval is terminated pursuant to paragraph (3)(B)).</content></clause></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">Conditions for approval</inline>.—</heading><chapeau>The Secretary may approve an application under paragraph (1) for an exemption if the Secretary makes a determination described in subparagraph (A) or (B), as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><chapeau>The Secretary makes a determination that, for reasons defined by the Secretary, it would be economically prohibitive with respect to such drug or device for the manufacturer to incur the costs necessary for the submission of a supplemental application. In making such determination, the Secretary shall consider (in addition to any other considerations the Secretary finds appropriate)—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>the lack of the availability under law of any period during which the manufacturer would have exclusive marketing rights with respect to the new use involved; and</content></clause> <page identifier="/us/stat/111/2361">111 STAT. 2361</page> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>the size of the population expected to benefit from approval of the supplemental application.</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>The Secretary makes a determination that, for reasons defined by the Secretary, it would be unethical to conduct the studies necessary for the supplemental application. In making such determination, the Secretary shall consider (in addition to any other considerations the Secretary finds appropriate) whether the new use involved is the standard of medical care for a health condition.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><heading><inline class="smallCaps">Time for consideration of application; deemed approval</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall approve or deny an application under paragraph (1) for an exemption not later than 60 days after the receipt of the application. If the Secretary does not comply with the preceding sentence, the application is deemed to be approved.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><heading><inline class="smallCaps">Termination of deemed approval</inline>.—</heading><content>If pursuant to a deemed approval under subparagraph (A) a manufacturer disseminates written information under section 551 on a new use, the Secretary may at any time terminate such approval and under section 555(b)(3) order the manufacturer to cease disseminating the information.</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><heading><inline class="smallCaps">Requirements Regarding Applications</inline>.—</heading><content>Applications under this section shall be submitted in the form and manner prescribed by the Secretary.</content></subsection></section> <section><num value="555">“SEC. 555. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s360aaa-4">21 USC 360aaa-4</ref>.</p></sidenote><heading>CORRECTIVE ACTIONS; CESSATION OF DISSEMINATION.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><heading><inline class="smallCaps">Postdissemination Data Regarding Safety and Effectiveness.—</inline></heading> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">Corrective actions</inline>.—</heading><content>With respect to data received by the Secretary after the dissemination of information under section 551 by a manufacturer has begun (whether received pursuant to paragraph (2) or otherwise), if the Secretary determines that the data indicate that the new use involved may not be effective or may present a significant risk to public health, the Secretary shall, after consultation with the manufacturer, take such action regarding the dissemination of the information as the Secretary determines to be appropriate for the protection of the public health, which may include ordering that the manufacturer cease the dissemination of the information.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">Responsibilities of manufacturers to submit data.</inline>—</heading><content>After a manufacturer disseminates information under section 551, the manufacturer shall submit to the Secretary a notification of any additional knowledge of the manufacturer on clinical research or other data that relate to the safety or effectiveness of the new use involved. If the manufacturer is in possession of the data, the notification shall include the data. The Secretary shall by regulation establish the scope <sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote>of the responsibilities of manufacturers under this paragraph, including such limits on the responsibilities as the Secretary determines to be appropriate.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><heading><inline class="smallCaps">Cessation of Dissemination</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">Failure of manufacturer to comply with requirements</inline>.—</heading><content>The Secretary may order a manufacturer to cease the dissemination of information pursuant to section 551 if <page identifier="/us/stat/111/2362">111 STAT. 2362</page>the Secretary determines that the information being disseminated does not comply with the requirements established in this subchapter. Such an order may be issued only after the Secretary has provided notice to the manufacturer of the intent of the Secretary to issue the order and (unless paragraph (2)(B) applies) has provided an opportunity for a meeting with respect to such intent. If the failure of the manufacturer constitutes a minor violation of this subchapter, the Secretary shall delay issuing the order and provide to the manufacturer an opportunity to correct the violation.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">Supplemental applications</inline>.—</heading><chapeau>The Secretary may order a manufacturer to cease the dissemination of information pursuant to section 551 if—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>in the case of a manufacturer that has submitted a supplemental application for a new use pursuant to section 554(a)(1), the Secretary determines that the supplemental application does not contain adequate information for approval of the new use for which the application was submitted;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>in the case of a manufacturer that has submitted a certification under section 554(b), the manufacturer has not, within the 6-month period involved, submitted the supplemental application referred to in the certification; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>in the case of a manufacturer that has submitted a certification under section 554(c) but has not yet submitted the supplemental application referred to in the certification, the Secretary determines, after an informal hearing, that the manufacturer is not acting with due diligence to complete the studies involved.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><heading><inline class="smallCaps">Termination of deemed approval of exemption regarding supplemental applications</inline>.—</heading><content>If under section 554(d)(3) the Secretary terminates a deemed approval of an exemption, the Secretary may order the manufacturer involved to cease disseminating the information. A manufacturer shall comply with an order under the preceding sentence not later than 60 days after the receipt of the order.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><heading><inline class="smallCaps">Corrective Actions by Manufacturers</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>In any case in which under this section the Secretary orders a manufacturer to cease disseminating information, the Secretary may order the manufacturer to take action to correct the information that has been disseminated, except as provided in paragraph (2).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">termination of deemed approval of exemption regarding supplemental applications</inline>.—</heading><content>In the case of an order under subsection (b)(3) to cease disseminating information, the Secretary may not order the manufacturer involved to take action to correct the information that has been disseminated unless the Secretary determines that the new use described in the information would pose a significant risk to the public health.</content></paragraph></subsection></section> <section><num value="556">“SEC. 556. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s360aaa-5">21 USC 360aaa-5</ref>.</p></sidenote><heading>DEFINITIONS.</heading> <chapeau>“For purposes of this subchapter:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>The term ‘health care practitioner’ means a physician, or other individual who is a provider of health care, who is licensed under the law of a State to prescribe drugs or devices.</content></paragraph> <page identifier="/us/stat/111/2363">111 STAT. 2363</page> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The terms “health insurance issuer’ and ‘group health plan’ have the meaning given such terms under section 2791 of the Public Health Service Act.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>The term ‘manufacturer’ means a person who manufactures a drug or device, or who is licensed by such person to distribute or market the drug or device.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><chapeau>The term ‘new use’—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>with respect to a drug, means a use that is not included in the labeling of the approved drug; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>with respect to a device, means a use that is not included in the labeling for the approved or cleared device.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><chapeau>The term ‘scientific or medical journal’ means a scientific or medical publication—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><chapeau>that is published by an organization—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>that has an editorial board;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>that utilizes experts, who have demonstrated expertise in the subject of an article under review by the organization and who are independent of the organization, to review and objectively select, reject, or provide comments about proposed articles; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><content>that has a publicly stated policy, to which the organization adheres, of full disclosure of any conflict of interest or biases for all authors or contributors involved with the journal or organization;</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>whose articles are peer-reviewed and published in accordance with the regular peer-review procedures of the organization;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>that is generally recognized to be of national scope and reputation;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>that is indexed in the Index Medicus of the National Library of Medicine of the National Institutes of Health; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E) </num><content>that is not in the form of a special supplement that has been funded in whole or in part by one or more manufacturers.</content></subparagraph></paragraph></section> <section><num value="557">“SEC. 557. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s360aaa-6">21 USC 360aaa-6</ref>.</p></sidenote><heading>RULES OF CONSTRUCTION.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><heading><inline class="smallCaps">Unsolicited Request.—</inline></heading><content>Nothing in section 551 shall be construed as prohibiting a manufacturer from disseminating information in response to an unsolicited request from a health care practitioner.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><heading><inline class="smallCaps">Dissemination of Information on Drugs or Devices Not Evidence of Intended Use</inline>.—</heading><content>Notwithstanding subsection (a), (f), or (o) of section 502, or any other provision of law, the dissemination of information relating to a new use of a drug or device, in accordance with section 551, shall not be construed by the Secretary as evidence of a new intended use of the drug or device that is different from the intended use of the drug or device set forth in the official labeling of the drug or device. Such dissemination shall not be considered by the Secretary as labeling, adulteration, or misbranding of the drug or device.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><heading><inline class="smallCaps">Patent Protection</inline>.—</heading><content>Nothing in section 551 shall affect patent rights in any manner.</content></subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><heading><inline class="smallCaps">Authorization for Dissemination of Articles and Fees for Reprints of Articles</inline>.—</heading><content>Nothing in section 551 shall be construed as prohibiting an entity that publishes a scientific journal <page identifier="/us/stat/111/2364">111 STAT. 2364</page>(as defined in section 556(5)) from requiring authorization from the entity to disseminate an article published by such entity or charging fees for the purchase of reprints of published articles from such entity.”.</content></subsection></section></subchapter></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Prohibited Act</inline>.—</heading><content>Section 301 (21 U.S.C. 331), as amended by section 210, is amended by adding at the end the following: <quotedContent><subsection class="indent0 fontsize10"><num value="z">“(z) </num><content>The dissemination of information in violation of section 551.”.</content></subsection></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s360aaa">21 USC 360aaa</ref> note.</p></sidenote><heading><inline class="smallCaps">Regulations.</inline>—</heading><content>Not later than 1 year after the date of enactment of this Act, the Secretary of Health and Human Services shall promulgate regulations to implement the amendments made by this section.</content></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s360aaa">21 USC 360aaa</ref> note.</p></sidenote><heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall take effect 1 year after the date of enactment of this Act, or upon the Secretary’s issuance of final regulations pursuant to subsection (c), whichever is sooner.</content></subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s360aaa">21 USC 360aaa</ref> note.</p></sidenote><heading><inline class="smallCaps">Sunset</inline>.—</heading><content>The amendments made by this section cease to be effective September 30, 2006, or 7 years after the date on which the Secretary promulgates the regulations described in subsection (c), whichever is later.</content></subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s360aaa">21 USC 360aaa</ref> note.</p></sidenote><heading><inline class="smallCaps">Studies and Reports</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">General accounting office</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>The Comptroller General of the United States shall conduct a study to determine the impact of subchapter D of chapter V of the Federal Food, Drug, and Cosmetic Act, as added by this section, on the resources of the Department of Health and Human Services.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than January 1, 2002, the Comptroller General of the United States shall prepare and submit to the Committee on Labor and Human Resources of the Senate and the Committee on Commerce of the House of Representatives a report of the results of the study.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Department of health and human services.</inline>—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In order to assist Congress in determining whether the provisions of such subchapter should be extended beyond the termination date specified in subsection (e), the Secretary of Health and Human Services shall, in accordance with subparagraph (B), arrange for the conduct of a study of the scientific issues raised as a result of the enactment of such subchapter including issues relating to—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>the effectiveness of such subchapter with respect to the provision of useful scientific information to health care practitioners;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>the quality of the information being disseminated pursuant to the provisions of such subchapter;</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii) </num><content>the quality and usefulness of the information provided, in accordance with such subchapter, by the Secretary or by the manufacturer at the request of the Secretary; and</content></clause> <clause class="indent3 fontsize10"><num value="iv">(iv) </num><content>the impact of such subchapter on research in the area of new uses, indications, or dosages, particularly the impact on pediatric indications and rare diseases.</content></clause></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Procedure for study</inline>.—</heading> <page identifier="/us/stat/111/2365">111 STAT. 2365</page> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary shall request the Institute of Medicine of the National Academy of Sciences to conduct the study required by paragraph (2), and to prepare and submit the report required by subparagraph (B), under an arrangement by which the actual expenses incurred by the Institute of Medicine in conducting the study and preparing the report will be paid by the Secretary. If the institute of Medicine is unwilling to conduct the study under such an arrangement, the Comptroller General of the United States shall conduct such study.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than September 30, 2005, the Institute of Medicine or the Comptroller General of the United States, as appropriate, shall prepare and submit to the Committee on Labor and Human Resources of the Senate, the Committee on Commerce of the House of Representatives, and the Secretary a report of the results of the study required by paragraph (2). The Secretary, after the receipt of the report, shall make the report available to the public.</content></subparagraph></paragraph></subsection></section> <section><num value="402">SEC. 402. </num><heading>EXPANDED ACCESS TO INVESTIGATIONAL THERAPIES AND DIAGNOSTICS.</heading> <content>Chapter V (21 U.S.C. 351 et seq.), as amended in section 401, is further amended by adding at the end the following: <quotedContent> <subchapter><num value="E">“Subchapter E—</num><heading>General Provisions Relating to Drugs and Devices</heading> <section><num value="561">“SEC. 561. </num><heading>EXPANDED ACCESS TO UNAPPROVED THERAPIES AND DIAGNOSTICS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s360bbb">21 USC 360bbb</ref>.</p></sidenote> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><heading><inline class="smallCaps">Emergency Situations.—</inline></heading><content>The Secretary may, under appropriate conditions determined by the Secretary, authorize the shipment of investigational drugs or investigational devices for the diagnosis, monitoring, or treatment of a serious disease or condition in emergency situations.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><heading><inline class="smallCaps">Individual Patient Access to Investigational Products Intended for Serious Diseases</inline>.—</heading><chapeau>Any person, acting through a physician licensed in accordance with State law, may request from a manufacturer or distributor, and any manufacturer or distributor may, after complying with the provisions of this subsection, provide to such physician an investigational drug or investigational device for the diagnosis, monitoring, or treatment of a serious disease or condition if—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>the licensed physician determines that the person has no comparable or satisfactory alternative therapy available to diagnose, monitor, or treat the disease or condition involved, and that the probable risk to the person from the investigational drug or investigational device is not greater than the probable risk from the disease or condition;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>the Secretary determines that there is sufficient evidence of safety and effectiveness to support the use of the investigational drug or investigational device in the case described in paragraph (1);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>the Secretary determines that provision of the investigational drug or investigational device will not interfere with the initiation, conduct, or completion of clinical investigations to support marketing approval; and</content></paragraph> <page identifier="/us/stat/111/2366">111 STAT. 2366</page> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>the sponsor, or clinical investigator, of the investigational drug or investigational device submits to the Secretary a clinical protocol consistent with the provisions of section 505(i) or 520(g), including any regulations promulgated under section 505(i) or 520(g), describing the use of the investigational drug or investigational device in a single patient or a small group of patients.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><heading><inline class="smallCaps">Treatment Investigational New Drug Applications and Treatment Investigational Device Exemptions</inline>.—</heading><chapeau>Upon submission by a sponsor or a physician of a protocol intended to provide widespread access to an investigational drug or investigational device for eligible patients (referred to in this subsection as an ‘expanded access protocol’), the Secretary shall permit such investigational drug or investigational device to be made available for expanded access under a treatment investigational new drug application or treatment investigational device exemption if the Secretary determines that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>under the treatment investigational new drug application or treatment investigational device exemption, the investigational drug or investigational device is intended for use in the diagnosis, monitoring, or treatment of a serious or immediately life-threatening disease or condition;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>there is no comparable or satisfactory alternative therapy available to diagnose, monitor, or treat that stage of disease or condition in the population of patients to which the investigational drug or investigational device is intended to be administered;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3)</num><subparagraph class="inline"><num value="A">(A) </num><content>the investigational drug or investigational device is under investigation in a controlled clinical trial for the use described in paragraph (1) under an investigational drug application in effect under section 505(i) or investigational device exemption in effect under section 520(g); or</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><content>all clinical trials necessary for approval of that use of the investigational drug or investigational device have been completed;</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>the sponsor of the controlled clinical trials is actively pursuing marketing approval of the investigational drug or investigational device for the use described in paragraph (1) with due diligence;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><content>in the case of an investigational drug or investigational device described in paragraph (3)(A), the provision of the investigational drug or investigational device will not interfere with the enrollment of patients in ongoing clinical investigations under section 505(i) or 520(g);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">“(6) </num><content>in the case of serious diseases, there is sufficient evidence of safety and effectiveness to support the use described in paragraph (1); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">“(7) </num><content>in the case of immediately life-threatening diseases, the available scientific evidence, taken as a whole, provides a reasonable basis to conclude that the investigational drug or investigational device may be effective for its intended use and would not expose patients to an unreasonable and significant risk of illness or injury.</content></paragraph> <continuation class="indent0 fontsize10">A protocol submitted under this subsection shall be subject to the provisions of section 505(i) or 520(g), including regulations promulgated under section 505(i) or 520(g). The Secretary may inform national, State, and local medical associations and societies, <page identifier="/us/stat/111/2367">111 STAT. 2367</page>voluntary health associations, and other appropriate persons about the availability of an investigational drug or investigational device under expanded access protocols submitted under this subsection. The information provided by the Secretary, in accordance with the preceding sentence, shall be the same type of information that is required by section 402(j)(3) of the Public Health Service Act.</continuation></subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><heading><inline class="smallCaps">Termination.</inline>—</heading><content>The Secretary may, at any time, with respect to a sponsor, physician, manufacturer, or distributor described in this section, terminate expanded access provided under this section for an investigational drug or investigational device if the requirements under this section are no longer met.</content></subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><content>In this section, the terms ‘investigational drug’, ‘investigational device’, ‘treatment investigational new drug application’, and ‘treatment investigational device exemption’ shall have the meanings given the terms in regulations prescribed by the Secretary.”.</content></subsection></section></subchapter></quotedContent></content></section> <section><num value="403">SEC. 403. </num><heading>APPROVAL OF SUPPLEMENTAL APPLICATIONS FOR APPROVED PRODUCTS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s371">21 USC 371</ref> note.</p></sidenote> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Standards.</inline>—</heading><content>Not later than 180 days after the date of enactment of this Act, the Secretary of Health and Human Services shall publish in the Federal Register standards for the prompt review of supplemental applications submitted for approved articles under the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301 et seq.) or section 351 of the Public Health Service Act (42 U.S.C. 262).</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Guidance to Industry</inline>.—</heading><chapeau>Not later than 180 days after the date of enactment of this Act, the Secretary shall issue final guidances to clarify the requirements for, and facilitate the submission of data to support, the approval of supplemental applications for the approved articles described in subsection (a). The guidances shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>clarify circumstances in which published matter may be the basis for approval of a supplemental application;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>specify data requirements that will avoid duplication of previously submitted data by recognizing the availability of data previously submitted in support of an original application; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>define supplemental applications that are eligible for priority review.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Responsibilities of Centers</inline>.—</heading><chapeau>The Secretary shall designate an individual in each center within the Food and Drug Administration (except the Center for Food Safety and Applied Nutrition) to be responsible for—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>encouraging the prompt review of supplemental applications for approved articles; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>working with sponsors to facilitate the development and submission of data to support supplemental applications.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Collaboration</inline>.—</heading><content>The Secretary shall implement programs and policies that will foster collaboration between the Food and Drug Administration, the National Institutes of Health, professional medical and scientific societies, and other persons, to identify published and unpublished studies that may support a supplemental application, and to encourage sponsors to make supplemental applications or conduct further research in support of a supplemental application based, in whole or in part, on such studies.</content></subsection></section> <page identifier="/us/stat/111/2368">111 STAT. 2368</page> <section><num value="404">SEC. 404. </num><heading>DISPUTE RESOLUTION.</heading> <content>Subchapter E of chapter V, as added by section 402, is amended by adding at the end the following: <quotedContent><section><num value="562">“SEC. 562. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s360bbb-1">21 USC 360bbb-1</ref>.</p> <p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote><heading>DISPUTE RESOLUTION.</heading> <content>“If, regarding an obligation concerning drugs or devices under this Act or section 351 of the Public Health Service Act, there is a scientific controversy between the Secretary and a person who is a sponsor, applicant, or manufacturer and no specific provision of the Act involved, including a regulation promulgated under such Act, provides a right of review of the matter in controversy, the Secretary shall, by regulation, establish a procedure under which such sponsor, applicant, or manufacturer may request a review of such controversy, including a review by an appropriate scientific advisory panel described in section 505(n) or an advisory committee described in section 515(g)(2)(B). Any such review shall take place in a timely manner. The Secretary shall promulgate such regulations within 1 year after the date of the enactment of the Food and Drug Administration Modernization Act of 1997.”.</content></section></quotedContent></content></section> <section><num value="405">SEC. 405. </num><heading>INFORMAL AGENCY STATEMENTS.</heading> <content>Section 701 (21 U.S.C. 371) is amended by adding at the end the following: <quotedContent><subsection class="indent0 fontsize10"><num value="h">“(h)</num><paragraph class="inline"><num value="1">(1)</num><subparagraph class="inline"><num value="A">(A) </num><content>The Secretary shall develop guidance documents with public participation and ensure that information identifying the existence of such documents and the documents themselves are made available to the public both in written form and, as feasible, through electronic means. Such documents shall not create or confer any rights for or on any person, although they present the views of the Secretary on matters under the jurisdiction of the Food and Drug Administration.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><content>Although guidance documents shall not be binding on the Secretary, the Secretary shall ensure that employees of the Food and Drug Administration do not deviate from such guidances without appropriate justification and supervisory concurrence. The Secretary shall provide training to employees in how to develop and use guidance documents and shall monitor the development and issuance of such documents.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">“(C) </num><content>For guidance documents that set forth initial interpretations of a statute or regulation, changes in interpretation or policy that are of more than a minor nature, complex scientific issues, or highly controversial issues, the Secretary shall ensure public participation prior to implementation of guidance documents, unless the Secretary determines that such prior public participation is not feasible or appropriate. In such cases, the Secretary shall provide for public comment upon implementation and take such comment into account.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="D">“(D) </num><content>For guidance documents that set forth existing practices or minor changes in policy, the Secretary shall provide for public comment upon implementation.</content></subparagraph></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>In developing guidance documents, the Secretary shall ensure uniform nomenclature for such documents and uniform internal procedures for approval of such documents. The Secretary shall ensure that guidance documents and revisions of such documents are properly dated and indicate the nonbinding nature of the documents. The Secretary shall periodically review all guidance documents and, where appropriate, revise such documents.</content></paragraph> <page identifier="/us/stat/111/2369">111 STAT. 2369</page> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>The Secretary, acting through the Commissioner, shall maintain electronically and update and publish periodically in the Federal Register a list of guidance documents. All such documents shall be made available to the public.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="4">“(4) </num><content>The Secretary shall ensure that an effective appeals mechanism is in place to address complaints that the Food and Drug Administration is not developing and using guidance documents in accordance with this subsection.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="5">“(5) </num><content>Not later than July 1, 2000, the Secretary after evaluating <sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote>the effectiveness of the Good Guidance Practices document, published in the Federal Register at 62 Fed. Reg. 8961, shall promulgate a regulation consistent with this subsection specifying the policies and procedures of the Food and Drug Administration for the development, issuance, and use of guidance documents”.</content></paragraph></subsection></quotedContent></content></section> <section><num value="406">SEC. 406. </num><heading>FOOD AND DRUG ADMINISTRATION MISSION AND ANNUAL REPORT.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Mission.</inline>—</heading><chapeau>Section 903 (21 U.S.C. 393) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by redesignating subsections (b) and (c) as subsections (d) and (e), respectively; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting after subsection (a) the following: <quotedContent><subsection class="indent0 fontsize10"><num value="b">“(b) </num><heading><inline class="smallCaps">Mission</inline>.—</heading><chapeau>The Administration shall—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>promote the public health by promptly and efficiently reviewing clinical research and taking appropriate action on the marketing of regulated products in a timely manner;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><chapeau>with respect to such products, protect the public health by ensuring that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>foods are safe, wholesome, sanitary, and properly labeled;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>human and veterinary drugs are safe and effective;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>there is reasonable assurance of the safety and effectiveness of devices intended for human use;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>cosmetics are safe and properly labeled; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E) </num><content>public health and safety are protected from electronic product radiation;</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>participate through appropriate processes with representatives of other countries to reduce the burden of regulation, harmonize regulatory requirements, and achieve appropriate reciprocal arrangements; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>as determined to be appropriate by the Secretary, carry out paragraphs (1) through (3) in consultation with experts in science, medicine, and public health, and in cooperation with consumers, users, manufacturers, importers, packers, distributors, and retailers of regulated products”.</content></paragraph></subsection></quotedContent></content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Annual Report</inline>.—</heading><content>Section 903 (21 U.S.C. 393), as amended by subsection (a), is further amended by adding at the end the following: <quotedContent><subsection class="indent0 fontsize10"><num value="f">“(f) </num><heading><inline class="smallCaps">Agency Plan for Statutory Compliance</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>Not later than 1 year after the date <sidenote><p class="indent0 firstIndent0 fontsize8">Federal Register, publication.</p></sidenote>of enactment of the Food and Drug Administration Modernization Act of 1997, the Secretary, after consultation with appropriate scientific and academic experts, health care professionals, representatives of patient and consumer advocacy groups, and the regulated industry, shall develop and publish in the Federal Register a plan bringing the Secretary into compliance with each of the obligations of the Secretary under this Act. The <page identifier="/us/stat/111/2370">111 STAT. 2370</page>Secretary shall review the plan biannually and shall revise the plan as necessary, in consultation with such persons.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">Objectives of agency plan</inline>.—</heading><chapeau>The plan required by paragraph (1) shall establish objectives and mechanisms to achieve such objectives, including objectives related to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>maximizing the availability and clarity of information about the process for review of applications and submissions (including petitions, notifications, and any other similar forms of request) made under this Act;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>maximizing the availability and clarity of information for consumers and patients concerning new products;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>implementing inspection and postmarket monitoring provisions of this Act;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>ensuring access to the scientific and technical expertise needed by the Secretary to meet obligations described in paragraph (1);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E) </num><content>establishing mechanisms, by July 1, 1999, for meeting the time periods specified in this Act for the review of all applications and submissions described in subparagraph (A) and submitted after the date of enactment of the Food and Drug Administration Modernization Act of 1997; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F) </num><content>eliminating backlogs in the review of applications and submissions described in subparagraph (A), by January 1, 2000.</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="g">“(g) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Federal Register, publication.</p></sidenote><heading><inline class="smallCaps">Annual Report.</inline>—</heading><chapeau>The Secretary shall annually prepare and publish in the Federal Register and solicit public comment on a report that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>provides detailed statistical information on the performance of the Secretary under the plan described in subsection (f);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>compares such performance of the Secretary with the objectives of the plan and with the statutory obligations of the Secretary; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>identifies any regulatory policy that has a significant negative impact on compliance with any objective of the plan or any statutory obligation and sets forth any proposed revision to any such regulatory policy.”.</content></paragraph></subsection></quotedContent></content></subsection></section> <section><num value="407">SEC. 407. </num><heading>INFORMATION SYSTEM.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Amendment</inline>.—</heading><content>Chapter VII (21 U.S.C. 371 et seq.) is amended by adding at the end the following: <quotedContent><subchapter><num value="D">“Subchapter D—</num><heading>Information and Education</heading> <section><num value="741">“SEC. 741. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s379k">21 USC 379k</ref>.</p></sidenote><heading>INFORMATION SYSTEM.</heading> <content>“The Secretary shall establish and maintain an information system to track the status and progress of each application or submission (including a petition, notification, or other similar form of request) submitted to the Food and Drug Administration requesting agency action.”.</content></section></subchapter></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s379k">21 USC 379k</ref> note.</p></sidenote><heading><inline class="smallCaps">Report.</inline>—</heading><content>Not later than 1 year after the date of enactment of this Act, the Secretary of Health and Human Services shall submit a report to the Committee on Labor and Human Resources of the Senate and the Committee on Commerce of the House of Representatives on the status of the system to be established under <page identifier="/us/stat/111/2371">111 STAT. 2371</page>the amendment made by subsection (a), including the projected costs of the system and concerns about confidentiality.</content></subsection></section> <section><num value="408">SEC. 408. </num><heading>EDUCATION AND TRAINING.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Food and Drug Administration.</inline>—</heading><content>Chapter VII (21 U.S.C. 371 et seq.), as amended by section 407, is further amended by adding at the end the following section: <quotedContent><section><num value="742">“SEC. 742. </num><heading>EDUCATION.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s379l">21 USC 379<i>l</i></ref>.</p></sidenote> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>The Secretary shall conduct training and education programs for the employees of the Food and Drug Administration relating to the regulatory responsibilities and policies established by this Act, including programs for—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>scientific training;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>training to improve the skill of officers and employees authorized to conduct inspections under section 704;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>training to achieve product specialization in such inspections; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>training in administrative process and procedure and integrity issues.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><heading><inline class="smallCaps">Intramural Fellowships and Other Training Programs</inline>.—</heading><content>The Secretary, acting through the Commissioner, may, through fellowships and other training programs, conduct and support intramural research training for predoctoral and postdoctoral scientists and physicians.”.</content></subsection></section></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Centers for Disease Control and Prevention.</inline>—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>Part B of title III of the Public Health Service Act is amended by inserting after section 317F (42 U.S.C. 247b-7) the following: <quotedContent><section><num value="317G">“SEC. 317G. </num><heading>FELLOWSHIP AND TRAINING PROGRAMS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s247b-8">42 USC 247b-8</ref>.</p></sidenote> <content>“The Secretary, acting through the Director of the Centers for Disease Control and Prevention, shall establish fellowship and training programs to be conducted by such Centers to train individuals to develop skills in epidemiology, surveillance, laboratory analysis, and other disease detection and prevention methods. Such programs shall be designed to enable health professionals and health personnel trained under such programs to work, after receiving such training, in local, State, national, and international efforts toward the prevention and control of diseases, injuries, and disabilities. Such fellowships and training may be administered through the use of either appointment or nonappointment procedures.”.</content></section></quotedContent></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendment made by this subsection <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s247b-8">42 USC 247b-8</ref> note.</p></sidenote>is deemed to have taken effect July 1, 1995.</content></paragraph></subsection></section> <section><num value="409">SEC. 409. </num><heading>CENTERS FOR EDUCATION AND RESEARCH ON THERAPEUTICS.</heading> <content>Title IX of the Public Health Service Act (42 U.S.C. 299 et seq.) is amended by adding at the end of part A the following new section: <quotedContent><section><num value="905">“SEC. 905. </num><heading>DEMONSTRATION PROGRAM REGARDING CENTERS FOR EDUCATION AND RESEARCH ON THERAPEUTICS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s299a-3">42 USC 299a-3</ref>.</p></sidenote> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><heading><inline class="smallCaps">In General.</inline>—</heading><content>The Secretary, acting through the Administrator and in consultation with the Commissioner of Food and Drugs, shall establish a demonstration program for the purpose of making one or more grants for the establishment and operation <page identifier="/us/stat/111/2372">111 STAT. 2372</page>of one or more centers to carry out the activities specified in subsection (b).</content></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><heading><inline class="smallCaps">Required Activities</inline>.—</heading><chapeau>The activities referred to in subsection (a) are the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><chapeau>The conduct of state-of-the-art clinical and laboratory research for the following purposes:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><chapeau>To increase awareness of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>new uses of drugs, biological products, and devices;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>ways to improve the effective use of drugs, biological products, and devices; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><content>risks of new uses and risks of combinations of drugs and biological products.</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><chapeau>To provide objective clinical information to the following individuals and entities:</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>Health care practitioners or other providers of health care goods or services.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>Pharmacy benefit managers.</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><content>Health maintenance organizations or other managed health care organizations.</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv) </num><content>Health care insurers or governmental agencies.</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v) </num><content>Consumers.</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><chapeau>To improve the quality of health care while reducing the cost of health care through—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>the appropriate use of drugs, biological products, or devices; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>the prevention of adverse effects of drugs, biological products, and devices and the consequences of such effects, such as unnecessary hospitalizations.</content></clause></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>The conduct of research on the comparative effectiveness and safety of drugs, biological products, and devices.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>Such other activities as the Secretary determines to be appropriate, except that the grant may not be expended to assist the Secretary in the review of new drugs.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><heading><inline class="smallCaps">Application for Grant</inline>.—</heading><content>A grant under subsection (a) may be made only if an application for the grant is submitted to the Secretary and the application is in such form, is made in such manner, and contains such agreements, assurances, and information as the Secretary determines to be necessary to carry out this section.</content></subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><heading><inline class="smallCaps">Peer Review</inline>.—</heading><content>A grant under subsection (a) may be made only if the application for the grant has undergone appropriate technical and scientific peer review.</content></subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><heading><inline class="smallCaps">Authorization of Appropriations</inline>.—</heading><content>For the purpose of carrying out this section, there are authorized to be appropriated $2,000,000 for fiscal year 1998, and $3,000,000 for each of fiscal years 1999 through 2002.”.</content></subsection></section></quotedContent></content></section> <section><num value="410">SEC. 410. </num><heading>MUTUAL RECOGNITION AGREEMENTS AND GLOBAL HARMONIZATION.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Good Manufacturing Practice Requirements</inline>.—</heading><chapeau>Section 520(f)(1)(B) (21 U.S.C. 360j(f)(1)(B)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in clause (i), by striking “<quotedText>, and</quotedText>” at the end and inserting a semicolon;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in clause (ii), by striking the period and inserting “<quotedText>; and</quotedText>”; and</content></paragraph> <page identifier="/us/stat/111/2373">111 STAT. 2373</page> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by inserting after clause (ii) the following: <quotedContent><clause class="indent3 fontsize10"><num value="iii">“(iii) </num><content>ensure that such regulation conforms, to the extent practicable, with internationally recognized standards defining quality systems, or parts of the standards, for medical devices.”.</content></clause></quotedContent></content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Harmonization Efforts</inline>.—</heading><content>Section 803 (21 U.S.C. 383) is amended by adding at the end the following: <quotedContent><subsection class="indent0 fontsize10"><num value="c">“(c)</num><paragraph class="inline"><num value="1">(1) </num><content>The Secretary shall support the Office of the United States Trade Representative, in consultation with the Secretary of Commerce, in meetings with representatives of other countries to discuss methods and approaches to reduce the burden of regulation and harmonize regulatory requirements if the Secretary determines that such harmonization continues consumer protections consistent with the purposes of this Act.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The Secretary shall support the Office of the United States Trade Representative, in consultation with the Secretary of Commerce, in efforts to move toward the acceptance of mutual recognition agreements relating to the regulation of drugs, biological products, devices, foods, food additives, and color additives, and the regulation of good manufacturing practices, between the European Union and the United States.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>The Secretary shall regularly participate in meetings with representatives of other foreign governments to discuss and reach agreement on methods and approaches to harmonize regulatory requirements.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="4">“(4) </num><content>The Secretary shall, not later than 180 days after the date of enactment of the Food and Drug Administration Modernization Act of 1997, make public a plan that establishes a framework for achieving mutual recognition of good manufacturing practices inspections.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="5">“(5) </num><content>Paragraphs (1) through (4) shall not apply with respect to products defined in section 201(ff).”.</content></paragraph></subsection></quotedContent></content></subsection></section> <section><num value="411">SEC. 411. </num><heading>ENVIRONMENTAL IMPACT REVIEW.</heading> <content>Chapter VII (21 U.S.C. 371 et seq.), as amended by section 407, is further amended by adding at the end the following: <quotedContent><subchapter><num value="E">“Subchapter E—</num><heading>Environmental Impact Review</heading> <section><num value="746">“SEC. 746. </num><heading>ENVIRONMENTAL IMPACT.</heading> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s379o">21 USC 379<i>o</i></ref>.</p></sidenote> <content>“Notwithstanding any other provision of law, an environmental impact statement prepared in accordance with the regulations published in part 25 of title 21, Code of Federal Regulations (as in effect on August 31, 1997) in connection with an action carried out under (or a recommendation or report relating to) this Act, shall be considered to meet the requirements for a detailed statement under section 102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)).”.</content></section></subchapter></quotedContent></content></section> <section><num value="412">SEC. 412. </num><heading>NATIONAL UNIFORMITY FOR NONPRESCRIPTION DRUGS AND COSMETICS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Nonprescription Drugs.—</inline></heading><content>Chapter VII (21 U.S.C. 371 et seq.), as amended by section 411, is farther amended by adding at the end the following: <page identifier="/us/stat/111/2374">111 STAT. 2374</page> <quotedContent><subchapter><num value="F">“Subchapter F—</num><heading>National Uniformity for Nonprescription Drugs and Preemption for Labeling or Packaging of Cosmetics</heading> <section><num value="751">“SEC. 751. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s379r">21 USC 379r</ref>.</p></sidenote><heading>NATIONAL UNIFORMITY FOR NONPRESCRIPTION DRUGS.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><heading><inline class="smallCaps">In General.</inline>—</heading><chapeau>Except as provided in subsection (b), (c)(1), (d), (e), or (f), no State or political subdivision of a State may establish or continue in effect any requirement—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>that relates to the regulation of a drug that is not subject to the requirements of section 503(b)(1) or 503(f)(1)(A); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>that is different from or in addition to, or that is otherwise not identical with, a requirement under this Act, the Poison Prevention Packaging Act of 1970 (15 U.S.C. 1471 et seq.), or the Fair Packaging and Labeling Act (15 U.S.C. 1451 et seq.).</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><heading><inline class="smallCaps">Exemption.</inline>—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Upon application of a State or political subdivision thereof, the Secretary may by regulation, after notice and opportunity for written and oral presentation of views, exempt from subsection (a), under such conditions as may be prescribed in such regulation, a State or political subdivision requirement that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>protects an important public interest that would otherwise be unprotected, including the health and safety of children;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>would not cause any drug to be in violation of any applicable requirement or prohibition under Federal law; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>would not unduly burden interstate commerce.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">Timely action</inline>.—</heading><content>The Secretary shall make a decision on the exemption of a State or political subdivision requirement under paragraph (1) not later than 120 days after receiving the application of the State or political subdivision under paragraph (1).</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><heading><inline class="smallCaps">Scope</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>This section shall not apply to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>any State or political subdivision requirement that relates to the practice of pharmacy; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>any State or political subdivision requirement that a drug be dispensed only upon the prescription of a practitioner licensed by law to administer such drug.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">Safety or effectiveness.</inline>—</heading><content>For purposes of subsection (a), a requirement that relates to the regulation of a drug shall be deemed to include any requirement relating to public information or any other form of public communication relating to a warning of any kind for a drug.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><heading><inline class="smallCaps">Exceptions</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of a drug described in subsection (a)(1) that is not the subject of an application approved under section 505 or section 507 (as in effect on the day before the date of enactment of the Food and Drug Administration Modernization Act of 1997) or a final regulation promulgated by the Secretary establishing conditions under which the drug is generally recognized as safe and effective and not misbranded, subsection (a) shall apply only with respect to a requirement of a State or political subdivision of a State that <page identifier="/us/stat/111/2375">111 STAT. 2375</page>relates to the same subject as, but is different from or in addition to, or that is otherwise not identical with—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>a regulation in effect with respect to the drug pursuant to a statute described in subsection (a)(2); or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>any other requirement in effect with respect to the drug pursuant to an amendment to such a statute made on or after the date of enactment of the Food and Drug Administration Modernization Act of 1997.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">State initiatives</inline>.—</heading><content>This section shall not apply to a State requirement adopted by a State public initiative or referendum enacted prior to September 1, 1997.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><heading><inline class="smallCaps">No Effect on Product Liability Law</inline>.—</heading><content>Nothing in this section shall be construed to modify or otherwise affect any action or the liability of any person under the product liability law of any State.</content></subsection> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><heading><inline class="smallCaps">State Enforcement Authority</inline>.—</heading><content>Nothing in this section shall prevent a State or political subdivision thereof from enforcing, under any relevant civil or other enforcement authority, a requirement that is identical to a requirement of this Act.”.</content></subsection></section></subchapter></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Inspections</inline>.—</heading><content>Section 704(a)(1) (21 U.S.C. 374(a)(1)) is amended by striking “<quotedText>prescription drugs</quotedText>” each place it appears and inserting “<quotedText>prescription drugs, nonprescription drugs intended for human use,</quotedText>”.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Misbranding</inline>.—</heading><chapeau>Subparagraph (1) of section 502(e) (21 U.S.C. 352(e)(1)) is amended to read as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1)</num><subparagraph class="inline"><num value="A">(A) </num><chapeau>If it is a drug, unless its label bears, to the exclusion of any other nonproprietary name (except the applicable systematic chemical name or the chemical formula)—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>the established name (as defined in subparagraph (3)) of the drug, if there is such a name;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>the established name and quantity or, if determined to be appropriate by the Secretary, the proportion of each active ingredient, including the quantity, kind, and proportion of any alcohol, and also including whether active or not the established name and quantity or if determined to be appropriate by the Secretary, the proportion of any bromides, ether, chloroform, acetanilide, acetophenetidin, amidopyrine, antipyrine, atropine, hyoscine, hyoscyamine, arsenic, digitalis, digitalis glucosides, mercury, ouabain, strophanthin, strychnine, thyroid, or any derivative or preparation of any such substances, contained therein, except that the requirement for stating the quantity of the active ingredients, other than the quantity of those specifically named in this subclause, shall not apply to nonprescription drugs not intended for human use; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><content>the established name of each inactive ingredient listed in alphabetical order on the outside container of the retail package and, if determined to be appropriate by the Secretary, on the immediate container, as prescribed in regulation promulgated by the Secretary, except that nothing in this subclause shall be deemed to require that any trade secret be divulged, and except that the requirements of this subclause with respect to alphabetical order snail apply only to nonprescription drugs that are not also cosmetics and that this subclause shall not apply to nonprescription drugs not intended for human use.</content></clause></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><content>For any prescription drug the established name of such drug or ingredient, as the case may be, on such label (and on <page identifier="/us/stat/111/2376">111 STAT. 2376</page>any labeling on which a name for such drug or ingredient is used) shall be printed prominently and in type at least half as large as that used thereon for any proprietary name or designation for such drug or ingredient, except that to the extent that compliance with the requirements of subclause (ii) or (iii) of clause (A) or this clause is impracticable, exemptions shall be established by regulations promulgated by the Secretary.”.</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Cosmetics.</inline>—</heading><content>Subchapter F of chapter VII, as amended by subsection (a), is further amended by adding at the end the following: <quotedContent><section><num value="752">“SEC. 752. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s379s">21 USC 379s</ref>.</p></sidenote><heading>PREEMPTION FOR LABELING OR PACKAGING OF COSMETICS.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>Except as provided in subsection (b), (d), or (e), no State or political subdivision of a State may establish or continue in effect any requirement for labeling or packaging of a cosmetic that is different from or in addition to, or that is otherwise not identical with, a requirement specifically applicable to a particular cosmetic or class of cosmetics under this Act, the Poison Prevention Packaging Act of 1970 (15 U.S.C. 1471 et seq.), or the Fair Packaging and Labeling Act (15 U.S.C. 1451 et seq.).</content></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><heading><inline class="smallCaps">Exemption</inline>.—</heading><chapeau>Upon application of a State or political subdivision thereof, the Secretary may by regulation, after notice and opportunity for written and oral presentation of views, exempt from subsection (a), under such conditions as may be prescribed in such regulation, a State or political subdivision requirement for labeling or packaging that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>protects an important public interest that would otherwise be unprotected;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>would not cause a cosmetic to be in violation of any applicable requirement or prohibition under Federal law; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>would not unduly burden interstate commerce.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><heading><inline class="smallCaps">Scope</inline>.—</heading><content>For purposes of subsection (a), a reference to a State requirement that relates to the packaging or labeling of a cosmetic means any specific requirement relating to the same aspect of such cosmetic as a requirement specifically applicable to that particular cosmetic or class of cosmetics under this Act for packaging or labeling, including any State requirement relating to public information or any other form of public communication.</content></subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><heading><inline class="smallCaps">No Effect on Product Liability Law</inline>.—</heading><content>Nothing in this section shall be construed to modify or otherwise affect any action or the liability of any person under the product liability law of any State.</content></subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><heading><inline class="smallCaps">State Initiative</inline>.—</heading><content>This section shall not apply to a State requirement adopted by a State public initiative or referendum enacted prior to September 1, 1997.”.</content></subsection></section></quotedContent></content></subsection></section> <section><num value="413">SEC. 413. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s393">21 USC 393</ref> note.</p></sidenote><heading>FOOD AND DRUG ADMINISTRATION STUDY OF MERCURY COMPOUNDS IN DRUGS AND FOOD.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">List and Analysis</inline>.—</heading><chapeau>The Secretary of Health and Human Services shall, acting through the Food and Drug Administration—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>compile a list of drugs and foods that contain intentionally introduced mercury compounds, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>provide a quantitative and qualitative analysis of the mercury compounds in the list under paragraph (1).</content></paragraph> <continuation class="indent0 fontsize10">The Secretary shall compile the list required by paragraph (1) within 2 years after the date of enactment of the Food and Drug Administration Modernization Act of 1997 and shall provide the <page identifier="/us/stat/111/2377">111 STAT. 2377</page>analysis required by paragraph (2) within 2 years after such date of enactment.</continuation></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Study</inline>.—</heading><content>The Secretary of Health and Human Services, acting through the Food and Drug Administration, shall conduct a study of the effect on humans of the use of mercury compounds in nasal sprays. Such study shall include data from other studies that have been made of such use.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Study of Mercury Sales</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Study</inline>.—</heading><chapeau>The Secretary of Health and Human Services, acting through the Food and Drug Administration and subject to appropriations, shall conduct, or shall contract with the Institute of Medicine of the National Academy of Sciences to conduct, a study of the effect on humans of the use of elemental, organic, or inorganic mercury when offered for sale as a drug or dietary supplement. Such study shall, among other things, evaluate—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the scope of mercury use as a drug or dietary supplement; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the adverse effects on health of children and other sensitive populations resulting from exposure to, or ingestion or inhalation of, mercury when so used.</content></subparagraph> <continuation class="indent0 fontsize10">In conducting such study, the Secretary shall consult with the Administrator of the Environmental Protection Agency, the Chair of the Consumer Product Safety Commission, and the Administrator of the Agency for Toxic Substances and Disease Registry, and, to the extent the Secretary believes necessary or appropriate, with any other Federal or private entity.</continuation></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Regulations</inline>.—</heading><content>If, in the opinion of the Secretary, the use of elemental, organic, or inorganic mercury offered for sale as a drug or dietary supplement poses a threat to human health, the Secretary shall promulgate regulations restricting the sale of mercury intended for such use. At a minimum, such regulations shall be designed to protect the health of children and other sensitive populations from adverse effects resulting from exposure to, or ingestion or inhalation of, mercury. Such regulations, to the extent feasible, should not unnecessarily interfere with the availability of mercury for use in religious ceremonies.</content></paragraph></subsection></section> <section><num value="414">SEC. 414. </num><heading>INTERAGENCY COLLABORATION.</heading> <content>Section 903 (21 U.S.C. 393), as amended by section 406, is further amended by inserting after subsection (b) the following: <quotedContent><subsection class="indent0 fontsize10"><num value="c">“(c) </num><heading><inline class="smallCaps">Interagency Collaboration</inline>.—</heading><content>The Secretary shall implement programs and policies that will foster collaboration between the Administration, the National Institutes of Health, and other science-based Federal agencies, to enhance the scientific and technical expertise available to the Secretary in the conduct of the duties of the Secretary with respect to the development, clinical investigation, evaluation, and postmarket monitoring of emerging medical therapies, including complementary therapies, and advances in nutrition and food science.”.</content></subsection></quotedContent></content></section> <section><num value="415">SEC. 415. </num><heading>CONTRACTS FOR EXPERT REVIEW.</heading> <content>Chapter IX (21 U.S.C. 391 et seq.), as amended by section 214, is further amended by adding at the end the following: <quotedContent><section><num value="907">“SEC. 907. </num><heading>CONTRACTS FOR EXPERT REVIEW.</heading> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s397">21 USC 397</ref>.</p></sidenote> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><heading><inline class="smallCaps">In General.—</inline></heading> <page identifier="/us/stat/111/2378">111 STAT. 2378</page> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">Authority</inline>.—</heading><content>The Secretary may enter into a contract with any organization or any individual (who is not an employee of the Department) with relevant expertise, to review and evaluate, for the purpose of making recommendations to the Secretary on, part or all of any application or submission (including a petition, notification, and any other similar form of request) made under this Act for the approval or classification of an article or made under section 351(a) of the Public Health Service Act (42 U.S.C. 262(a)) with respect to a biological product. Any such contract shall be subject to the requirements of section 708 relating to the confidentiality of information.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">Increased efficiency and expertise through contracts</inline>.—</heading><content>The Secretary may use the authority granted in paragraph (1) whenever the Secretary determines that use of a contract described in paragraph (1) will improve the timeliness of the review of an application or submission described in paragraph (1), unless using such authority would reduce the quality, or unduly increase the cost, of such review. The Secretary may use such authority whenever the Secretary determines that use of such a contract will improve the quality of the review of an application or submission described in paragraph (1), unless using such authority would unduly increase the cost of such review. Such improvement in timeliness or quality may include providing the Secretary increased scientific or technical expertise that is necessary to review or evaluate new therapies and technologies.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><heading><inline class="smallCaps">Review of Expert Review</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>Subject to paragraph (2), the official of the Food and Drug Administration responsible for any matter for which expert review is used pursuant to subsection (a) shall review the recommendations of the organization or individual who conducted the expert review and shall make a final decision regarding the matter in a timely manner.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">Limitation</inline>.—</heading><content>A final decision by the Secretary on any such application or submission shall be made within the applicable prescribed time period for review of the matter as set forth in this Act or in the Public Health Service Act (42 U.S.C. 201 et seq.).”.</content></paragraph></subsection></section></quotedContent></content></section> <section><num value="416">SEC. 416. </num><heading>PRODUCT CLASSIFICATION.</heading> <content>Subchapter E of chapter V, as amended by section 404, is further amended by adding at the end the following: <quotedContent><section><num value="563">“SEC. 563. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s360bbb-2">21 USC 360bbb-2</ref>.</p></sidenote><heading>CLASSIFICATION OF PRODUCTS.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><heading><inline class="smallCaps">Request</inline>.—</heading><content>A person who submits an application or submission (including a petition, notification, and any other similar form of request) under this Act for a product, may submit a request to the Secretary respecting the classification of the product as a drug, biological product, device, or a combination product subject to section 503(g) or respecting the component of the Food and Drug Administration that will regulate the product. In submitting the request, the person shall recommend a classification for the product, or a component to regulate the product, as appropriate.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><heading><inline class="smallCaps">Statement</inline>.—</heading><content>Not later than 60 days after the receipt of the request described in subsection (a), the Secretary shall determine the classification of the product under subsection (a), or the component of the Food and Drug Administration that will regulate the product, and shall provide to the person a written statement <page identifier="/us/stat/111/2379">111 STAT. 2379</page>that identifies such classification or such component, and the reasons for such determination. The Secretary may not modify such statement except with the written consent of the person, or for public health reasons based on scientific evidence.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><heading><inline class="smallCaps">Inaction of Secretary.—</inline></heading><content>If the Secretary does not provide the statement within the 60-day period described in subsection (b), the recommendation made by the person under subsection (a) shall be considered to be a final determination by the Secretary of such classification of the product, or the component of the Food and Drug Administration that will regulate the product, as applicable, and may not be modified by the Secretary except with the written consent of the person, or for public health reasons based on scientific evidence.”.</content></subsection></section></quotedContent></content></section> <section><num value="417">SEC. 417. </num><heading>REGISTRATION OF FOREIGN ESTABLISHMENTS.</heading> <content>Section 510(i) (21 U.S.C. 360(i)) is amended to read as follows: <quotedContent><subsection class="indent0 fontsize10"><num value="i">“(i)</num><paragraph class="inline"><num value="1">(1) </num><content>Any establishment within any foreign country engaged in the manufacture, preparation, propagation, compounding, or processing of a drug or a device that is imported or offered for import into the United States shall register with the Secretary the name and place of business of the establishment and the name of the United States agent for the establishment.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The establishment shall also provide the information required by subsection (j).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>The Secretary is authorized to enter into cooperative arrangements with officials of foreign countries to ensure that adequate and effective means are available for purposes of determining, from time to time, whether drugs or devices manufactured, prepared, propagated, compounded, or processed by an establishment described in paragraph (1), if imported or offered for import into the United States, shall be refused admission on any of the grounds set forth in section 801(a).”.</content></paragraph></subsection></quotedContent></content></section> <section><num value="418">SEC. 418. </num><heading>CLARIFICATION OF SEIZURE AUTHORITY.</heading> <chapeau>Section 304(d)(1) (21 U.S.C. 334(d)(1)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in the fifth sentence, by striking “<quotedText>paragraphs (1) and (2) of section 801(e)</quotedText>” and inserting “<quotedText>subparagraphs (A) and (B) of section 801(e)(1)</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by inserting after the fifth sentence the following: “Any person seeking to export an imported article pursuant to any of the provisions of this subsection shall establish that the article was intended for export at the time the article entered commerce.”.</content></paragraph></section> <section><num value="419">SEC. 419. </num><heading>INTERSTATE COMMERCE.</heading> <content>Section 709 (21 U.S.C. 379a) is amended by striking “<quotedText>a device</quotedText>” and inserting “<quotedText>a device, food, drug, or cosmetic</quotedText>”.</content></section> <section><num value="420">SEC. 420. </num><heading>SAFETY REPORT DISCLAIMERS.</heading> <content>Chapter VII (21 U.S.C. 371 et seq.), as amended by section 412, is further amended by adding at the end the following: <quotedContent><subchapter><num value="G">“Subchapter G—</num><heading>Safety Reports</heading> <section><num value="766">“SEC. 766. </num><heading>SAFETY REPORT DISCLAIMERS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s379v">21 USC 379v</ref>.</p></sidenote> <content>“With respect to any entity that submits or is required to submit a safety report or other information in connection with the safety of a product (including a product that is a food, drug, <page identifier="/us/stat/111/2380">111 STAT. 2380</page>device, dietary supplement, or cosmetic) under this Act (and any release by the Secretary of that report or information), such report or information shall not be construed to reflect necessarily a conclusion by the entity or the Secretary that the report or information constitutes an admission that the product involved malfunctioned, caused or contributed to an adverse experience, or otherwise caused or contributed to a death, serious injury, or serious illness. Such an entity need not admit, and may deny, that the report or information submitted by the entity constitutes an admission that the product involved malfunctioned, caused or contributed to an adverse experience, or caused or contributed to a death, serious injury, or serious illness.”.</content></section></subchapter></quotedContent></content></section> <section><num value="421">SEC. 421. </num><heading>LABELING AND ADVERTISING REGARDING COMPLIANCE WITH STATUTORY REQUIREMENTS.</heading> <content>Section 301 (21 U.S.C. 331) is amended by striking paragraph (1).</content></section> <section><num value="422">SEC. 422. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s321">21 USC 321</ref> note.</p></sidenote><heading>RULE OF CONSTRUCTION.</heading> <content>Nothing in this Act or the amendments made by this Act shall be construed to affect the question of whether the Secretary of Health and Human Services has any authority to regulate any tobacco product, tobacco ingredient, or tobacco additive. Such authority, if any, shall be exercised under the Federal Food, Drug, and Cosmetic Act as in effect on the day before the date of the enactment of this Act.</content></section> <num value="V">TITLE V—</num><heading>EFFECTIVE DATE</heading> <section><num value="501">SEC. 501. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s321">21 USC 321</ref> note.</p></sidenote><heading>EFFECTIVE DATE.</heading> <content>Except as otherwise provided in this Act, this Act and the amendments made by this Act, other than the provisions of and the amendments made by sections 111, 121, 125, and 307, shall take effect 90 days after the date of enactment of this Act.</content></section> Approved November 21, 1997.
LEGISLATIVE HISTORY—S. 830 (H.R. 1411): HOUSE REPORTS: Nos. 105–310, accompanying H.R. 1411 (Comm. on Commerce) and 105–399 (Comm. of Conference). SENATE REPORTS: No. 105–43 (Comm. on Labor and Human Resources). CONGRESSIONAL RECORD, Vol. 143 (1997):

Sept. 11, 16, 18, 19, 23, 24, considered and passed Senate.

Oct. 7, considered and passed House, amended, in lieu of H.R. 1411.

Nov. 9, Senate and House agreed to conference report.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS. Vol. 33 (1997):

Nov. 21, Presidential remarks and statement.

 Public Law 105–116: To amend title 38, United States Code, to prohibit interment or memorialization in certain cemeteries of persons committing Federal or State capital crimes. Public Law116 Public Law 105–116 111 Stat. 2381 1997-11-21 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2381 Public Law105–116 105th Congress
An Act To amend title 38, United States Code, to prohibit interment or memorialization in certain cemeteries of persons committing Federal or State capital crimes.

Nov. 21, 1997

[S. 923]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. DENIAL OF ELIGIBILITY FOR INTERMENT OR MEMORIALIZATION IN CERTAIN CEMETERIES OF PERSONS COMMITTING FEDERAL CAPITAL CRIMES. (a) Prohibition Against Interment or Memorialization in Certain Federal Cemeteries.—Chapter 24 of title 38, United States Code, is amended by adding at the end the following new section:
“§ 2411. Prohibition against interment or memorialization in the National Cemetery System or Arlington National Cemetery of persons committing Federal or State capital crimes “(a)(1) In the case of a person described in subsection (b), the appropriate Federal official may not— “(A) inter the remains of such person in a cemetery in the National Cemetery System or in Arlington National Cemetery; or “(B) honor the memory of such person in a memorial area in a cemetery in the National Cemetery System (described in section 2403(a) of this title) or in such an area in Arlington National Cemetery (described in section 2409(a) of this title). “(2) The prohibition under paragraph (1) shall not apply unless written notice of a conviction or finding under subsection (b) is received by the appropriate Federal official before such official approves an application for the interment or memorialization of such person. Such written notice shall be furnished to such official by the Attorney General, in the case of a Federal capital crime, or by an appropriate State official, in the case of a State capital crime. “(b) A person referred to in subsection (a) is any of the following: “(1) A person who has been convicted of a Federal capital crime for which the person was sentenced to death or life imprisonment. “(2) A person who has been convicted of a State capital crime for which the person was sentenced to death or life imprisonment without parole. “(3) A person who— 111 STAT. 2382 “(A) is found (as provided in subsection (c)) to have committed a Federal capital crime or a State capital crime, but “(B) has not been convicted of such crime by reason of such person not being available for trial due to death or flight to avoid prosecution. “(c) A finding under subsection (b)(3) shall be made by the appropriate Federal official. Any such finding may only be made based upon a showing of clear and convincing evidence, after an opportunity for a hearing in a manner prescribed by the appropriate Federal official. “(d) For purposes of this section: “(1) The term ‘Federal capital crime’ means an offense under Federal law for which the death penalty or life imprisonment may be imposed. “(2) The term ‘State capital crime’ means, under State law, the willful, deliberate, or premeditated unlawful killing of another human being for which the death penalty or life imprisonment without parole may be imposed. “(3) The term ‘appropriate Federal official’ means— “(A) the Secretary, in the case of the National Cemetery System; and “(B) the Secretary of the Army, in the case of Arlington National Cemetery.”.
 (b) Clerical Amendment .—The table of sections at the beginning of chapter 24 of such title is amended by adding at the end the following new item: “2411. (c)

38 USC 2411 note.

Effective Date.—Section 2411 of title 38, United States Code, as added by subsection (a), shall apply with respect to applications for interment or memorialization made on or after the date of the enactment of this Act.
SEC. 2. CONDITION ON GRANTS TO STATE-OWNED VETERAN CEMETERIES. Section 2408 of title 38, United States Code, is amended— (1) by redesignating subsection (d) as subsection (e); and (2) by inserting after subsection (c) the following new subsection: “(d)(1) In addition to the conditions specified in subsections (b) and (c), any grant made on or after the date of the enactment of this subsection to a State under this section to assist such State in establishing, expanding, or improving a veterans’ cemetery shall be made on the condition described in paragraph (2). “(2) For purposes of paragraph (1), the condition described in this paragraph is that, after the date of the receipt of the grant, such State prohibit the interment or memorialization in that cemetery of a person described in section 2411(b) of this title, subject to the receipt of notice described in subsection (a)(2) of such section, except that for purposes of this subsection— 111 STAT. 2383 “(A) such notice shall be furnished to an appropriate official of such State; and “(B) a finding described in subsection (b)(3) of such section shall be made by an appropriate official of such State.”.
Approved November 21, 1997.
LEGISLATIVE HISTORY—S. 923: HOUSE REPORTS: No. 105–319 (Comm. on Veterans’ Affairs). CONGRESSIONAL RECORD, Vol. 143 (1997):

June 18, considered and passed Senate.

Oct. 31, considered and passed House, amended.

Nov. 10, Senate concurred in House amendments.

 Public Law 105–117: To amend the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 to prohibit an alien who is not lawfully present in the United States from receiving assistance under that Act. Public Law117 Public Law 105–117 111 Stat. 2384 1997-11-21 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2384 Public Law105–117 105th Congress
An Act To amend the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 to prohibit an alien who is not lawfully present in the United States from receiving assistance under that Act.

Nov. 21, 1997

[S. 1258]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. DISPLACED PERSONS NOT ELIGIBLE FOR ASSISTANCE. Title I of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.) is amended by adding at the end the following:
“SEC. 104.

42 USC 4605.

DISPLACED PERSONS NOT ELIGIBLE FOR ASSISTANCE. “(a) In General.—Except as provided in subsection (c), a displaced person shall not be eligible to receive relocation payments or any other assistance under this Act if the displaced person is an alien not lawfully present in the United States. “(b) Determinations of Eligibility.— “(1) Promulgation of regulations.—Not later than 1 year after the date of enactment of this section, after providing notice and an opportunity for public comment, the head of the lead agency shall promulgate regulations to carry out subsection (a). “(2) Contents of regulations.—Regulations promulgated under paragraph (1) shall— “(A) prescribe the processes, procedures, and information that a displacing agency must use in determining whether a displaced person is an alien not lawfully present in the United States; “(B) prohibit a displacing agency from discriminating against any displaced person; “(C) ensure that each eligibility determination is fair and based on reliable information; and “(D) prescribe standards for a displacing agency to apply in making determinations relating to exceptional and extremely unusual hardship under subsection (c). “(c) Exceptional and Extremely Unusual Hardship.—If a displacing agency determines by clear and convincing evidence that a determination of the ineligibility of a displaced person under subsection (a) would result in exceptional and extremely unusual hardship to an individual who is the displaced person’s spouse, parent, or child and who is a citizen of the United States or an alien lawfully admitted for permanent residence in the United States, the displacing agency shall provide relocation payments and other assistance to the 111 STAT. 2385displaced person under this Act if the displaced person would be eligible for the assistance but for subsection (a). “(d) Limitation on Statutory Construction.—Nothing in this section affects any right available to a displaced person under any other provision of Federal or State law.”.
SEC. 2. DUTIES OF LEAD AGENCY. Section 213(a) of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4633(a)) is amended— (1) by redesignating paragraphs (2), (3), and (4) as paragraphs (4), (5), and (6), respectively; and (2) by inserting after paragraph (1) the following: “(2) provide, in consultation with the Attorney General (acting through the Commissioner of the Immigration and Naturalization Service), through training and technical assistance activities for displacing agencies, information developed with the Attorney General (acting through the Commissioner) on proper implementation of section 104; “(3) ensure that displacing agencies implement section 104 fairly and without discrimination in accordance with section 104(b)(2)(B);”.
Approved November 21, 1997.
LEGISLATIVE HISTORY—S. 1258 (H.R. 849): HOUSE REPORTS: No. 105–147 accompanying H.R. 849 (Comm. on Transportation and Infrastructure). CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 8, considered and passed Senate.

Nov. 9, considered and passed House.

 Public Law 105–118: Making appropriations for foreign operations, export financing, and related programs for the fiscal year ending September 30, 1998, and for other purposes. Public Law118 Public Law 105–118 111 Stat. 2386 1997-11-26 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2386 Public Law105–118 105th Congress
An Act Making appropriations for foreign operations, export financing, and related programs for the fiscal year ending September 30, 1998, and for other purposes.

Nov. 26, 1997

[H.R. 2159]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1998.
That the following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 1998, and for other purposes, namely:
<num value="I">TITLE I—</num><heading>EXPORT AND INVESTMENT ASSISTANCE</heading> <appropriations level="small"> <heading>export-import bank of the united states</heading> <content>The Export-Import Bank of the United States is authorized to make such expenditures within the limits of funds and borrowing authority available to such corporation, and in accordance with law, and to make such contracts and commitments without regard to fiscal year limitations, as provided by section 104 of the Government Corporation Control Act, as may be necessary in carrying out the program for the current fiscal year for such corporation: Provided, That none of the funds available during the current fiscal year may be used to make expenditures, contracts, or commitments for the export of nuclear equipment, fuel, or technology to any country other than a nuclear-weapon state as defined in Article IX of the Treaty on the Non-Proliferation of Nuclear Weapons eligible to receive economic or military assistance under this Act that has detonated a nuclear explosive after the date of enactment of this Act.</content> </appropriations> <appropriations level="small"> <heading>subsidy appropriation</heading> <content>For the cost of direct loans, loan guarantees, insurance, and tied-aid grants as authorized by section 10 of the Export-Import Bank Act of 1945, as amended, $683,000,000 to remain available until September 30, 2001: <proviso><i>Provided</i>, That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974:</proviso> <proviso><i>Provided further</i>, That such sums shall remain available until 2013 for the disbursement of direct loans, loan guarantees, insurance and tied-aid grants obligated in fiscal years 1998 and 1999:</proviso> <proviso><i>Provided further</i>, That up to $50,000,000 of funds appropriated by this paragraph shall remain available until expended and may be used tor tied-aid grant purposes:</proviso> <proviso><i>Provided further</i>, That none of the funds appropriated by this Act or any prior Act appropriating funds for foreign operations, export financing, or related programs for tied-aid credits <page identifier="/us/stat/111/2387">111 STAT. 2387</page>or grants may be used for any other purpose except through the regular notification procedures of the Committees on Appropriations:</proviso> <proviso><i>Provided further</i>, That funds appropriated by this paragraph are made available notwithstanding section 2(b)(2) of the Export-Import Bank Act of 1945, in connection with the purchase or lease of any product by any East European country, any Baltic State, or any agency or national thereof</proviso>.</content> </appropriations> <appropriations level="small"> <heading>administrative expenses</heading> <content>For administrative expenses to carry out the direct and guaranteed loan and insurance programs (to be computed on an accrual basis), including hire of passenger motor vehicles and services as authorized by 5 U.S.C. 3109, and not to exceed $20,000 for official reception and representation expenses for members of the Board of Directors, $48,614,000: <proviso><i>Provided</i>, That necessary expenses (including special services performed on a contract or fee basis, but not including other personal services) in connection with the collection of moneys owed the Export-Import Bank, repossession or sale of pledged collateral or other assets acquired by the Export-Import Bank in satisfaction of moneys owed the Export-Import Bank, or the investigation or appraisal of any property, or the evaluation of the legal or technical aspects of any transaction for which an application for a loan, guarantee or insurance commitment has been made, shall be considered nonadministrative expenses for the purposes of this heading</proviso>: <proviso><i>Provided further</i>, That, notwithstanding <sidenote><p class="indent0 firstIndent0 fontsize8">Termination date.</p> <p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s635a">12 USC 635a</ref> note.</p> </sidenote>subsection (b) of section 117 of the Export Enhancement Act of 1992, subsection (a) thereof shall remain in effect until October 1, 1998</proviso>.</content> </appropriations> <appropriations level="small"> <heading>overseas private investment corporation</heading> <appropriations level="small"> <heading>noncredit account</heading> <content>The Overseas Private Investment Corporation is authorized to make, without regard to fiscal year limitations, as provided by 31 U.S.C. 9104, such expenditures and commitments within the limits of funds available to it and in accordance with law as may be necessary: <proviso><i>Provided,</i> That the amount available for administrative expenses to carry out the credit and insurance programs (including an amount for official reception and representation expenses which shall not exceed $35,000) shall not exceed $32,000,000</proviso>: <proviso><i>Provided further</i>, That project-specific transaction costs, including direct and indirect costs incurred in claims settlements, and other direct costs associated with services provided to specific investors or potential investors pursuant to section 234 of the Foreign Assistance Act of 1961, snail not be considered administrative expenses for the purposes of this heading</proviso>.</content> </appropriations> </appropriations> <appropriations level="small"> <heading>program account</heading> <content>For the cost of direct and guaranteed loans, $60,000,000, as authorized by section 234 of the Foreign Assistance Act of 1961 to be derived by transfer from the Overseas Private Investment Corporation Noncredit Account: <proviso><i>Provided</i>, That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974</proviso>: <proviso><i>Provided further</i>, That such sums shall be available for direct loan obligations and loan guaranty commitments incurred or made during fiscal years <page identifier="/us/stat/111/2388">111 STAT. 2388</page>1998 and 1999</proviso>: <proviso><i>Provided further</i>, That such sums shall remain available through fiscal year 2006 for the disbursement of direct and guaranteed loans obligated in fiscal year 1998, and through fiscal year 2007 for the disbursement of direct and guaranteed loans obligated in fiscal year 1999</proviso>: <proviso><i>Provided further</i>, That in addition, such sums as may be necessary for administrative expenses to carry out the credit program may be derived from amounts available for administrative expenses to carry out the credit and insurance programs in the Overseas Private Investment Corporation Noncredit Account and merged with said account</proviso>.</content> </appropriations> <appropriations level="intermediate"> <heading>Funds Appropriated to the President</heading> <appropriations level="small"> <heading>trade and development agency</heading> <content>For necessary expenses to carry out the provisions of section 661 of the Foreign Assistance Act of 1961, $41,500,000, to remain available until September 30, 1999: <proviso><i>Provided,</i> That the Trade and Development Agency may receive reimbursements from corporations and other entities for the costs of grants for feasibility studies and other project planning services, to be deposited as an offsetting collection to this account and to be available for obligation until September 30, 1999, for necessary expenses under this paragraph</proviso>: <proviso><i>Provided further</i>, That such reimbursements shall not cover, or be allocated against, direct or indirect administrative costs of the agency</proviso>.</content> </appropriations> </appropriations> <num value="I">TITLE II—</num><heading>BILATERAL ECONOMIC ASSISTANCE</heading> <appropriations level="intermediate"> <heading>Funds Appropriated to the President</heading> <content>For expenses necessary to enable the President to carry out the provisions of the Foreign Assistance Act of 1961, and for other purposes, to remain available until September 30, 1998, unless otherwise specified herein, as follows:</content> </appropriations> <appropriations level="small"> <heading>agency for international development</heading> <appropriations level="small"> <heading>child survival and disease programs fund</heading> <content>For necessary expenses to carry out the provisions of chapters 1 and 10 of part I of the Foreign Assistance Act of 1961, for child survival, basic education, assistance to combat tropical and other diseases, and related activities, in addition to funds otherwise available for such purposes, $650,000,000, to remain available until expended: <proviso><i>Provided,</i> That this amount shall be made available for such activities as: (1) immunization programs; (2) oral rehydration programs; (3) health and nutrition programs, and related education programs, which address the needs of mothers and children; (4) water and sanitation programs; (5) assistance for displaced and orphaned children; (6) programs for the prevention, treatment, and control of, and research on, tuberculosis, HIV/AlDS, polio, malaria and other diseases; (7) up to $98,000,000 for basic education programs for children; and (8) a contribution on a grant basis to the United Nations Children’s Fund (UNICEF) pursuant to section 301 of the Foreign Assistance Act of 1961</proviso>.</content> </appropriations> </appropriations> <page identifier="/us/stat/111/2389">111 STAT. 2389</page> <appropriations level="small"> <heading>agency for international development</heading> <heading>development assistance</heading> <subheading>(including transfer of funds)</subheading> <content>For necessary expenses to carry out the provisions of sections 103 through 106 and chapter 10 of part I of the Foreign Assistance Act of 1961, title V of the International Security and Development Cooperation Act of 1980 (Public Law 96–533) and the provisions of section 401 of the Foreign Assistance Act of 1969, $1,210,000,000, to remain available until September 30, 1999: <proviso><i>Provided</i>, That of the amount appropriated under this heading, up to $22,000,000 may be made available for the Inter-American Foundation and shall be apportioned directly to that agency</proviso>: <proviso><i>Provided further</i>, That of the amount appropriated under this heading, up to $14,000,000 may be made available for the African Development Foundation and shall be apportioned directly to that agency</proviso>: <proviso><i>Provided further</i>, That none of the funds made available in this Act nor any unobligated balances from prior appropriations may be made available to any organization or program which, as determined by the President of the United States, supports or participates in the management of a program of coercive abortion or involuntary sterilization</proviso>: <proviso><i>Provided further</i>, That none of the funds made available under this heading may be used to pay for the performance of abortion as a method of family planning or to motivate or coerce any person to practice abortions; and that in order to reduce reliance on abortion in developing nations, funds shall be available only to voluntary family planning projects which offer, either directly or through referral to, or information about access to, a broad range of family planning methods and services</proviso>: <proviso><i>Provided further</i>, That in awarding grants for natural family planning under section 104 of the Foreign Assistance Act of 1961 no applicant shall be discriminated against because of such applicant’s religious or conscientious commitment to offer only natural family planning; and, additionally, all such applicants shall comply with the requirements of the previous proviso</proviso>: <proviso><i>Provided further</i>, That for purposes of this or any other Act authorizing or appropriating funds for foreign operations, export financing, and related programs, the term “motivate”, as it relates to family planning assistance, shall not be construed to prohibit the provision, consistent with local law, of information or counseling about all pregnancy options</proviso>: <proviso><i>Provided further</i>, That nothing in this paragraph shall be construed to alter any existing statutory prohibitions against abortion under section 104 of the Foreign Assistance Act of 1961</proviso>: <proviso><i>Provided further</i>, That, notwithstanding section 109 of the Foreign Assistance Act of 1961, of the funds appropriated under this heading in this Act, and of the unobligated balances of funds previously appropriated under this heading, not to exceed $2,500,000 shall be transferred to “International Organizations and Programs” for a contribution to the International Fund for Agricultural Development (IFAD), and that any such transfer of funds shall be subject to the regular notification procedures of the Committees on Appropriations</proviso>: <proviso><i>Provided further</i>, That of the funds appropriated under this heading that are made available for assistance programs for displaced and orphaned children and victims of war, not to exceed $25,000, in addition to funds otherwise available for such purposes, may be used to monitor and provide oversight of such programs</proviso>: <proviso><i>Provided further</i>, That <page identifier="/us/stat/111/2390">111 STAT. 2390</page>none of the funds made available under this heading may be used for any activity which is in contravention to the Convention on International Trade in Endangered Species of Flora and Fauna (CITES)</proviso>.</content> </appropriations> <appropriations level="small"> <heading>private and voluntary organizations</heading> <content><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s2151u">22 USC 2151u</ref> note.</p></sidenote><p class="indent0 firstIndent1 fontsize10">None of the funds appropriated or otherwise made available by this Act for development assistance may be made available to any United States private and voluntary organization, except any cooperative development organization, which obtains less than 20 percent of its total annual funding for international activities from sources other than the United States Government: <proviso><i>Provided,</i> That the requirements of the provisions of section 123(g) of the Foreign Assistance Act of 1961 and the provisions on private and voluntary organizations in title II of the Foreign Assistance and Related Programs Appropriations Act, 1985 (as enacted in Public Law 98–473) shall be superseded by the provisions of this section, except that the authority contained in the last sentence of section 123(g) may be exercised by the Administrator with regard to the requirements of this paragraph</proviso>.</p> <p class="indent0 firstIndent1 fontsize10">Funds appropriated or otherwise made available under title II of this Act should be made available to private and voluntary organizations at a level which is at least equivalent to the level provided in fiscal year 1995. Such private and voluntary organizations shall include those which operate on a not-for-profit basis, receive contributions from private sources, receive voluntary support from the public and are deemed to be among the most cost-effective and successful providers of development assistance.</p></content> </appropriations> <appropriations level="small"> <heading>cyprus</heading> <content>Of the funds appropriated under the headings “Development Assistance” and “Economic Support Fund”, not less than $15,000,000 shall be made available for Cyprus to be used only for scholarships, administrative support of the scholarship program, bicommunal projects, and measures aimed at reunification of the island and designed to reduce tensions and promote peace and cooperation between the two communities on Cyprus.</content> </appropriations> <appropriations level="small"> <heading>burma</heading> <content>Of the funds appropriated under the headings “Development Assistance” and “Economic Support Fund”, not less than $5,000,000 shall be made available to support activities in Burma, along the Burma-Thailand border, and for activities of Burmese student groups and other organizations located outside Burma: <proviso><i>Provided</i>, That binds made available for Burma related activities under this heading may be made available notwithstanding any other provision of law</proviso>: <proviso><i>Provided further</i>, That provision of such funds shall be made available subject to the regular notification procedures of the Committees on Appropriations</proviso>.</content> </appropriations> <appropriations level="small"> <heading>cambodia</heading> <content>None of the funds appropriated in this Act may be made available for the Government of Cambodia: <proviso><i>Provided</i>, That the restrictions under this heading shall not apply to humanitarian, demining or election-related programs or activities</proviso>: <proviso><i>Provided further</i>, That <page identifier="/us/stat/111/2391">111 STAT. 2391</page> such funds shall be subject to the regular notification procedures of the Committees on Appropriations</proviso>: <proviso><i>Provided further</i>, That 30 <sidenote><p class="indent0 firstIndent0 fontsize8">President.</p> <p class="indent0 firstIndent0 fontsize8">Reports.</p> </sidenote>days after enactment of this Act, the President shall report to the Committees on Appropriations on the results of the FBI investigation into the bombing attack in Phnom Penh on March 30, 1997</proviso>.</content> </appropriations> <appropriations level="small"> <heading>international disaster assistance</heading> <content>For necessary expenses for international disaster relief, rehabilitation, and reconstruction assistance pursuant to section 491 of the Foreign Assistance Act of 1961, as amended, $190,000,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>debt restructuring</heading> <content>For the cost, as defined in section 502 of the Congressional Budget Act of 1974, of modifying direct loans and loan guarantees, as the President may determine, for which funds have been appropriated or otherwise made available for programs within the International Affairs Budget Function 150, including the cost of selling, reducing, or canceling amounts, through debt buybacks and swaps, owed to the United States as a result of concessional loans made to eligible Latin American and Caribbean countries, pursuant to part IV of the Foreign Assistance Act of 1961; of modifying concessional loans extended to least developed countries, as authorized under section 411 of the Agricultural Trade Development and Assistance Act of 1954, as amended; and of modifying any obligation, or portion of such obligation for Latin American countries to pay for purchases of United States agricultural commodities guaranteed by the Commodity Credit Corporation under export credit guarantee programs authorized pursuant to section 5(f) of the Commodity Credit Corporation Charter Act of June 29, 1948, as amended, section 4(b) of the Food for Peace Act of 1966, as amended (Public Law 89–808), or section 202 of the Agricultural Trade Act of 1978, as amended (Public Law 95–501); $27,000,000, to remain available until expended: <proviso><i>Provided</i>, That not to exceed $1,500,000 of such funds may be used for implementation of improvements in the foreign credit reporting system of the United States Government</proviso>.</content> </appropriations> <appropriations level="small"> <heading>micro and small enterprise development program account</heading> <content>For the cost of direct loans and loan guarantees, $1,500,000, as authorized by section 108 of the Foreign Assistance Act of 1961, as amended: <proviso><i>Provided</i>, That such costs shall be as defined in section 502 of the Congressional Budget Act of 1974</proviso>: <proviso><i>Provided further</i>, That guarantees of loans made under this heading in support of microenterprise activities may guarantee up to 70 percent of the principal amount of any such loans notwithstanding section 108 of the Foreign Assistance Act of 1961. In addition, for administrative expenses to carry out programs under this heading, $500,000, all of which may be transferred to and merged with the appropriation for Operating Expenses of the Agency for International Development</proviso>: <proviso><i>Provided further</i>, That funds made available under this heading shall remain available until September 30, 1999</proviso>.</content> </appropriations> <page identifier="/us/stat/111/2392">111 STAT. 2392</page> <appropriations level="small"> <heading>urban and environmental credit program account</heading> <content>For the cost, as defined in section 502 of the Congressional Budget Act of 1974, of guaranteed loans authorized by sections 221 and 222 of the Foreign Assistance Act of 1961, including the cost of guaranteed loans designed to promote the urban and environmental policies and objectives of part I of such Act, $3,000,000, to remain available until September 30, 1999: <proviso><i>Provided</i>, That these funds are available to subsidize loan principal, 100 percent of which shall be guaranteed, pursuant to the authority of such sections. In addition, for administrative expenses to carry out guaranteed loan programs, $6,000,000, all of which may be transferred to and merged with the appropriation for Operating Expenses of the Agency for International Development</proviso>: <proviso><i>Provided further</i>, That commitments to guarantee loans under this heading may be entered into notwithstanding the second and third sentences of section 222(a) and, with regard to programs for Central and Eastern Europe and programs for the benefit of South Africans disadvantaged by apartheid, section 223(j) of the Foreign Assistance Act of 1961</proviso>.</content> </appropriations> <appropriations level="small"> <heading>payment to the foreign service retirement and disability fund</heading> <content>For payment to the “Foreign Service Retirement and Disability Fund”, as authorized by the Foreign Service Act of 1980, $44,208,000.</content> </appropriations> <appropriations level="small"> <heading>operating expenses of the agency for international development</heading> <content>For necessary expenses to carry out the provisions of section 667, $473,000,000: <proviso><i>Provided</i>, That none of the funds appropriated by this Act for programs administered by the Agency for International Development may be used to finance printing costs of any report or study (except feasibility, design, or evaluation reports or studies) in excess of $25,000 without the approval of the Administrator of the Agency or the Administrator’s designee</proviso>.</content> </appropriations> <appropriations level="small"> <heading>operating expenses of the agency for international development office of inspector general</heading> <content>For necessary expenses to carry out the provisions of section 667, $29,047,000, to remain available until September 30, 1999, which sum shall be available for the Office of the Inspector General of the Agency for International Development.</content> </appropriations> <appropriations level="intermediate"> <heading>Other Bilateral Economic Assistance</heading> <appropriations level="small"> <heading>economic support fund</heading> <content>For necessary expenses to carry out the provisions of chapter 4 of part II, $2,400,000,000, to remain available until September 30, 1999: <proviso><i>Provided,</i> That of the funds appropriated under this heading, not less than $1,200,000,000 shall be available only for Israel, which sum shall be available on a grant basis as a <page identifier="/us/stat/111/2393">111 STAT. 2393</page>cash transfer and shall be disbursed within 30 days of enactment of this Act or by October 31, 1997, whichever is later</proviso>: <proviso><i>Provided further</i>, That not less than $815,000,000 shall be available only for Egypt, which sum shall be provided on a grant basis, and of which sum <sidenote><p class="indent0 firstIndent0 fontsize8">President.</p></sidenote>cash transfer assistance may be provided, with the understanding that Egypt will undertake significant economic reforms which are additional to those which were undertaken in previous fiscal years</proviso>: <proviso><i>Provided further,</i> That in exercising the authority to provide cash transfer assistance for Israel, the President shall ensure that the level of such assistance does not cause an adverse impact on the total level of nonmilitary exports from the United States to such country</proviso>: <proviso><i>Provided further</i>, That of the funds appropriated under this heading, not less than $150,000,000 shall be made available for Jordan</proviso>: <proviso><i>Provided further</i>, That of the funds made available under this heading in previous Acts making appropriations for foreign operations, export financing, and related programs, notwithstanding any provision in any such heading in such previous Acts, up to $116,000,000 may be allocated or made available for programs and activities under this heading including the Middle East Peace and Stability Fund</proviso>: <proviso><i>Provided further</i>, That in carrying out the previous proviso, the President should seek to ensure to the extent feasible that not more than 1 percent of the amount specified in section 586 of this Act should be derived from funds that would otherwise be made available for any single country</proviso>: <proviso><i>Provided further</i>, That funds provided for the Middle East Peace and Stability Fund by a country in the region under the authority of section 635(d) of the Foreign Assistance Act of 1961, and funds made available for Jordan following the date of enactment of this Act from previous Acts making appropriations for foreign operations, export financing, and related programs, shall count toward meeting the earmark contained in the fourth proviso under this heading: Provided further, That up to $10,000,000 of funds under this heading in previous foreign operations, export financing, and related programs appropriations Acts that were reprogrammed for Jordan during fiscal year 1997 shall also count toward such earmark</proviso>: <proviso><i>Provided further</i>, That, in order to facilitate the implementation of the fourth proviso under this heading, the requirement of section 515 of this Act or any similar provision of law shall not apply to the making available of funds appropriated for a fiscal year for programs, projects, or activities that were justified for another fiscal year</proviso>: <proviso><i>Provided further</i>, That for fiscal year 1998 such portions of the notification required under section 653 of the Foreign Assistance Act of 1961 that relate to the Middle East may be submitted to the Congress as soon as practicable, but no later than March 1, 1998</proviso>: <proviso><i>Provided further</i>, That during fiscal year 1998, of the local currencies generated from funds made available under this heading for Guatemala by this Act and prior appropriations Acts, the United States and Guatemala may jointly program the Guatemala quetzales equivalent of a total of up to $10,000,000 for the purpose of retiring the debt owed by universities in Guatemala to the Inter-American Development Bank</proviso>.</content> </appropriations> <appropriations level="small"> <heading>international fund for ireland</heading> <content>For necessary expenses to carry out the provisions of chapter 4 of part II of the Foreign Assistance Act of 1961, $19,600,000, which shall be available for the United States contribution to the International Fund for Ireland and shall be made available in accordance with the provisions of the Anglo-Irish Agreement Support Act of 1986 (Public Law 99–415): <proviso><i>Provided</i>, That such amount shall be expended at the minimum rate necessary to make timely payment for projects and activities</proviso>: <proviso><i>Provided further</i>, That funds <page identifier="/us/stat/111/2394">111 STAT. 2394</page>made available under this heading shall remain available until September 30, 1999</proviso>.</content> </appropriations> <appropriations level="small"> <heading>assistance for eastern europe and the baltic states</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><content>For necessary expenses to carry out the provisions of the Foreign Assistance Act of 1961 and the Support for East European Democracy (SEED) Act of 1989, $485,000,000, to remain available until September 30, 1999, which shall be available, notwithstanding any other provision of law, for economic assistance and for related programs for Eastern Europe and the Baltic States.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Funds appropriated under this heading or in prior appropriations Acts that are or have been made available for an Enterprise Fund may be deposited by such Fund in interest-bearing accounts prior to the Fund’s disbursement of such funds for program purposes. The Fund may retain for such program purposes any interest earned on such deposits without returning such interest to the Treasury of the United States and without further appropriation by the Congress. Funds made available for Enterprise Funds shall be expended at the minimum rate necessary to make timely payment for projects and activities.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Funds appropriated under this heading shall be considered to be economic assistance under the Foreign Assistance Act of 1961 for purposes of making available the administrative authorities contained in that Act for the use of economic assistance.</content></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>None of the funds appropriated under this heading may be made available for new housing construction or repair or reconstruction of existing housing in Bosnia and Herzegovina unless directly related to the efforts or United States troops to promote peace in said country.</content></subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><chapeau>With regard to funds appropriated or otherwise made available under this heading for the economic revitalization program in Bosnia and Herzegovina, and local currencies generated by such funds (including the conversion of funds appropriated under this heading into currency used by Bosnia and Herzegovina as local currency and local currency returned or repaid under such program)—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the Administrator of the Agency for International Development shall provide written approval for grants and loans prior to the obligation and expenditure of funds for such purposes, and prior to the use of funds that have been returned or repaid to any lending facility or grantee; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote><content>the provisions of section 532 of this Act shall apply.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><content>The President is authorized to withhold funds appropriated under this heading made available for economic revitalization programs in Bosnia and Herzegovina, if he determines and certifies to the Committees on Appropriations that the Federation of Bosnia and Herzegovina has not complied with article III of annex 1-A of the General Framework Agreement for Peace in Bosnia and Herzegovina concerning the withdrawal of foreign forces, and that intelligence cooperation on training, investigations, and related activities between Iranian officials and Bosnian officials has not been terminated.</content></subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><content>Not to exceed $200,000,000 of the funds appropriated under this heading may be made available for Bosnia and Herzegovina exclusive of assistance for police training.</content></subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num><content>Not to exceed $7,000,000 of the funds made available for Bosnia and Herzegovina may be made available for the cost, as <page identifier="/us/stat/111/2395">111 STAT. 2395</page>defined in section 502 of the Congressional Budget Act of 1974, of modifying direct loans and loan guarantees for said country.</content></subsection> </appropriations> <appropriations level="small"> <heading>assistance for the new independent states of the former soviet union</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><content>For necessary expenses to carry out the provisions of chapter 11 of part I of the Foreign Assistance Act of 1961 and the FREEDOM Support Act, for assistance for the new independent states of the former Soviet Union and for related programs, $770,000,000, to remain available until September 30, 1999: <proviso><i>Provided,</i> That the <sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote>provisions of such chapter shall apply to funds appropriated by this paragraph</proviso>.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>None of the funds appropriated under this heading shall be made available to the Government of Russia—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>unless that government is making progress in implementing comprehensive economic reforms based on market principles, private ownership, negotiating repayment of commercial debt, respect for commercial contracts, and equitable treatment of foreign private investment;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>if that government applies or transfers United States assistance to any entity for the purpose of expropriating or seizing ownership or control of assets, investments, or ventures; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>funds may be furnished without regard to this subsection if the President determines that to do so is in the national interest.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>None of the funds appropriated under this heading shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s5814">22 USC 5814</ref> note.</p></sidenote>be made available to any government of the new independent states of the former Soviet Union if that government directs any action in violation of the territorial integrity or national sovereignty of any other new independent state, such as those violations included in the Helsinki Final Act: <proviso><i>Provided,</i> That such funds may be made available without regard to the restriction in this subsection if the President determines that to do so is in the national security interest of the United States</proviso>: <proviso><i>Provided further</i>, That the restriction of this subsection shall not apply to the use of such funds for the provision of assistance for purposes of humanitarian and refugee relief</proviso>.</content></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>None of the funds appropriated under this heading for the new independent states of the former Soviet Union shall be made available for any state to enhance its military capability: <proviso><i>Provided</i>, That this restriction does not apply to demilitarization, demining, or nonproliferation programs</proviso>.</content></subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><content>Funds appropriated under this heading shall be subject to the regular notification procedures of the Committees on Appropriations.</content></subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><content>Funds made available in this Act for assistance to the new independent states of the former Soviet Union shall be subject to the provisions of section 117 (relating to environment and natural resources) of the Foreign Assistance Act of 1961.</content></subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><content>Funds appropriated under title II of this Act, including funds appropriated under this heading, may be made available for assistance for Mongolia: <proviso><i>Provided</i>, That funds made available for assistance for Mongolia may be made available in accordance with the purposes and utilizing the authorities provided in chapter 11 of part I of the Foreign Assistance Act of 1961</proviso>.</content></subsection> <page identifier="/us/stat/111/2396">111 STAT. 2396</page> <subsection class="indent0 fontsize10"><num value="h">(h) </num><content>In issuing new task orders, entering into contracts, or making grants, with funds appropriated under this heading or in prior appropriations Acts, for projects or activities that have as one of their primary purposes the fostering of private sector development, the Coordinator for United States Assistance to the New Independent States and the implementing agency shall encourage the participation of and give significant weight to contractors and grantees who propose investing a significant amount of their own resources (including volunteer services and in-kind contributions) in such projects and activities.</content></subsection> <subsection class="indent0 fontsize10"><num value="i">(i) </num><content>Funds appropriated under this heading or in prior appropriations Acts that are or have been made available for an Enterprise Fund may be deposited by such Fund in interest-bearing accounts prior to the disbursement of such funds by the Fund for program purposes. The Fund may retain for such program proposes any interest earned on such deposits without returning such interest to the Treasury of the United States and without further appropriation by the Congress. Funds made available for Enterprise Funds shall be expended at the minimum rate necessary to make timely payment for projects and activities.</content></subsection> <subsection class="indent0 fontsize10"><num value="j">(j)</num><paragraph class="inline"><num value="1">(1) </num><content>Of the funds appropriated under this heading that are allocated for assistance for the Government of Russia, 50 percent shall be withheld from obligation until the President determines and certifies in writing to the Committees on Appropriations that the Government of Russia has terminated implementation of arrangements to provide Iran with technical expertise, training, technology, or equipment necessary to develop a nuclear reactor, related nuclear research facilities or programs, or ballistic missile capability.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Notwithstanding paragraph (1) assistance may be provided for the Government of Russia if the President determines and certifies to the Committees on Appropriations that making such funds available: (A) is vital to the national security interest of the United States; and (B) that the Government of Russia is taking meaningful steps to limit major supply contracts and to curtail the transfer of technology and technological expertise related to activities referred to in paragraph (1).</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="k">(k) </num><content>Of the funds appropriated under this heading, not less than $225,000,000 shall be made available for Ukraine, which sum shall be provided with the understanding that Ukraine will undertake significant economic reforms which are additional to those which were undertaken in the previous fiscal year: <proviso><i>Provided</i>, That 50 percent of the amount made available in this subsection, exclusive of funds made available for election related initiatives and nuclear reactor safety activities, shall be withheld from obligation and expenditure until the Secretary of State determines and certifies no later than April 30, 1998, that the Government of Ukraine has made significant progress toward resolving complaints made by United States investors to the United States embassy prior to April 30, 1997</proviso>: <proviso><i>Provided further</i>, That funds made available under this subsection, and funds appropriated for Ukraine in the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1997 as contained in Public Law 104–208 shall be made available to complete the preparation of safety analysis reports at each nuclear reactor in Ukraine over the next three years</proviso>.</content></subsection> <page identifier="/us/stat/111/2397">111 STAT. 2397</page> <subsection class="indent0 fontsize10"><num value="l">(l) </num><content>Of the funds appropriated under this heading, not less than $250,000,000 shall be made available for assistance for the Southern Caucasus region: <proviso><i>Provided,</i> That of the funds provided under this subsection 37 percent shall be made available for Georgia and 35 percent shall be made available for Armenia</proviso>: <proviso><i>Provided further</i>, That of the funds made available for the Southern Caucasus region, 28 percent should be used for reconstruction and remedial activities relating to the consequences of conflicts within the region, especially those in the vicinity of Abkhazia and Nagorno-Karabakh</proviso>: <proviso><i>Provided further</i>, That if the Secretary of State after May 30, 1998, <sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote>determines and reports to the relevant committees of Congress that the full amount of reconstruction and remedial funds that may be made available under the previous proviso cannot be effectively utilized, up to 62.5 percent of the amount provided under the previous proviso for reconstruction and remediation may be used for other purposes under this heading</proviso>.</content></subsection> <subsection class="indent0 fontsize10"><num value="m">(m) </num><content>Funds provided under the previous subsection shall be made available for humanitarian assistance for refugees, displaced persons, and needy civilians affected by the conflicts in the Southern Caucasus region, including those in the vicinity of Abkhazia and Nagorno-Karabakh, notwithstanding any other provision of this or any other Act.</content></subsection> <subsection class="indent0 fontsize10"><num value="n">(n) </num><chapeau>Funds made available under this Act or any other Act may not be provided for assistance to the Government of Azerbaijan until the President determines, and so reports to the Congress, that the Government of Azerbaijan is taking demonstrable steps to cease all blockades against Armenia and Nagorno-Karabakh: <proviso><i>Provided</i>, That the restriction of this subsection and section 907 of the FREEDOM Support Act shall not apply to</proviso>—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>activities to support democracy or assistance under title V of the FREEDOM Support Act and section 1424 of Public Law 104–201;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>any assistance provided by the Trade and Development Agency under section 661 of the Foreign Assistance Act of 1961 (22 U.S.C. 2421); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>any activity carried out by a member of the United States and Foreign Commercial Service while acting within his or her official capacity.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="o">(o) </num><content>None of the funds appropriated under this heading or in prior appropriations legislation may be made available to establish a joint public-private entity or organization engaged in the management of activities or projects supported by the Defense Enterprise Fund.</content></subsection> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Independent Agency</heading> <appropriations level="small"> <heading>peace corps</heading> <content>For expenses necessary to carry out the provisions of the Peace Corps Act (75 Stat. 612), $222,000,000, including the purchase of not to exceed five passenger motor vehicles for administrative purposes for use outside of the United States: <proviso><i>Provided,</i> That none <sidenote><p class="indent0 firstIndent0 fontsize8">Abortion.</p></sidenote>of the funds appropriated under this heading shall be used to pay for abortions</proviso>: <proviso><i>Provided further</i>, That funds appropriated under this heading shall remain available until September 30, 1999</proviso>.</content> </appropriations> </appropriations> <page identifier="/us/stat/111/2398">111 STAT. 2398</page> <appropriations level="intermediate"> <heading>Department of State</heading> <appropriations level="small"> <heading>international narcotics control</heading> <content>For necessary expenses to carry out section 481 of the Foreign Assistance Act of 1961, $215,000,000: <proviso><i>Provided,</i> That during fiscal year 1998, the Department of State may also use the authority of section 608 of the Act, without regard to its restrictions, to receive non-lethal excess property from an agency of the United States Government for the purpose of providing it to a foreign country under chapter 8 of part I of that Act subject to the regular notification procedures of the Committees on Appropriations</proviso>: <proviso><i>Provided <sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p> </sidenote>further</i>, That not later than 60 days after the date of enactment of this Act, the Secretary of State in consultation with the Director of the Office of National Drug Control Policy shall submit a report to the Committees on Appropriations containing: (1) a list of all countries in which the United States carries out international counter-narcotics activities; (2) the number, mission and agency affiliation of United States personnel assigned to each such country; and (3) all costs and expenses obligated for each program, project or activity by each United States agency in each country</proviso>: <proviso><i>Provided further</i>, That of the amount made available under this heading not to exceed $5,000,000 shall be allocated to operate the Western Hemisphere International Law Enforcement Academy</proviso>: <proviso><i>Provided further</i>, That 10 percent of the funds appropriated under this heading shall not be available for obligation until the Secretary of State submits a report to the Committees on Appropriations providing a financial plan for the funds appropriated under this heading and under the heading “Narcotics Interdiction”</proviso>.</content> </appropriations> <appropriations level="small"> <heading>narcotics interdiction</heading> <content>For necessary expenses to carry out the provisions of section 481 of the Foreign Assistance Act of 1961, $15,000,000, to remain available until expended, in addition to amounts otherwise available for such purposes, which shall be available for assistance, including procurement, for support of air drug interdiction and eradication and other related purposes: <proviso><i>Provided</i>, That funds appropriated under this heading shall be made available subject to the regular notification procedures of the Committees on Appropriations</proviso>.</content> </appropriations> <appropriations level="small"> <heading>migration and refugee assistance</heading> <content>For expenses, not otherwise provided for, necessary to enable the Secretary of State to provide, as authorized by law, a contribution to the International Committee of the Red Cross, assistance to refugees, including contributions to the International Organization for Migration and the United Nations High Commissioner for Refugees, and other activities to meet refugee and migration needs; salaries and expenses of personnel and dependents as authorized by the Foreign Service Act of 1980; allowances as authorized by sections 5921 through 5925 of title 5, United States Code; purchase and hire of passenger motor vehicles; and services as authorized by section 3109 of title 5, United States Code, $650,000,000: <proviso><i>Provided,</i> That not more than $12,000,000 shall be available for administrative expenses</proviso>: <proviso><i>Provided further</i>, That not less than $80,000,000 shall be made available for refugees from <page identifier="/us/stat/111/2399">111 STAT. 2399</page>the former Soviet Union and Eastern Europe and other refugees resettling in Israel</proviso>.</content> </appropriations> <appropriations level="small"> <heading>refugee resettlement assistance</heading> <content>For necessary expenses for the targeted assistance program authorized by title IV of the Immigration and Nationality Act and section 501 of the Refugee Education Assistance Act of 1980 and administered by the Office of Refugee Resettlement of the Department of Health and Human Services, in addition to amounts otherwise available for such purposes, $5,000,000.</content> </appropriations> <appropriations level="small"> <heading>united states emergency refugee and migration assistance fund</heading> <content>For necessary expenses to carry out the provisions of section 2(c) of the Migration and Refugee Assistance Act of 1962, as amended (22 U.S.C. 260(c)), $50,000,000, to remain available until expended: Provided, That the funds made available under this heading are appropriated notwithstanding the provisions contained in section 2(c)(2) of the Migration and Refugee Assistance Act of 1962 which would limit the amount of funds which could be appropriated for this purpose.</content> </appropriations> <appropriations level="small"> <heading>nonproliferation, anti-terrorism, demining and related programs</heading> <content>For necessary expenses for nonproliferation, anti-terrorism and related programs and activities, $133,000,000, to carry out the provisions of chapter 8 of part II of the Foreign Assistance Act of 1961 for anti-terrorism assistance, section 504 of the FREEDOM Support Act for the Nonproliferation and Disarmament Fund, section 23 of the Arms Export Control Act or the Foreign Assistance Act of 1961 for demining, the clearance of unexploded ordnance, and related activities, notwithstanding any other provision of law, including activities implemented through nongovernmental and international organizations, section 301 of the Foreign Assistance Act of 1961 for a voluntary contribution to the International Atomic Energy Agency (IAEA) and a voluntary contribution to the Korean Peninsula Energy Development Organization (KEDO): <proviso><i>Provided</i>, That of this amount not to exceed $15,000,000, to remain available until expended, may be made available for the Nonproliferation and Disarmament Fund, notwithstanding any other provision of law, to promote bilateral and multilateral activities relating to nonproliferation and disarmament</proviso>: <proviso><i>Provided further</i>, That such funds may also be used for such countries other than the new independent states of the former Soviet Union and international organizations when it is in the national security interest of the United States to do so</proviso>: <proviso><i>Provided further</i>, That such funds shall be subject to the regular notification procedures of the Committees on Appropriations</proviso>: <proviso><i>Provided further</i>, That funds appropriated under this heading may be made available for the International Atomic Energy Agency only if the Secretary of State determines (and so reports to the Congress) that Israel is not being denied its right to participate in the activities of that Agency</proviso>: <proviso><i>Provided further</i>, That not to exceed $30,000,000 may be made available to the Korean Peninsula Energy Development Organization (KEDO) only for the administrative expenses and heavy fuel oil costs associated <page identifier="/us/stat/111/2400">111 STAT. 2400</page><sidenote><p class="indent0 firstIndent0 fontsize8">President.</p> <p class="indent0 firstIndent0 fontsize8">Certification.</p> <p class="indent0 firstIndent0 fontsize8">Reports.</p> </sidenote>with the Agreed Framework</proviso>: <proviso><i>Provided further,</i> That such funds may be obligated to KEDO only if, 30 days prior to such obligation of funds, the President certifies and so reports to Congress that: (1)(A) the parties to the Agreed Framework are taking steps to assure that progress is made on the implementation of the January 1, 1992, Joint Declaration on the Denuclearization of the Korean Peninsula and the implementation of the North-South dialogue, and (B) North Korea is complying with the other provisions of the Agreed Framework between North Korea and the United States and with the Confidential Minute; (2) North Korea is cooperating fully in the canning and safe storage of all spent fuel from its graphite-moderated nuclear reactors and that such canning and safe storage is scheduled to be completed by April 1, 1998; and (3) North Korea has not significantly diverted assistance provided by the United States for purposes for which it was not intended</proviso>: <proviso><i>Provided further</i>, That the President may waive the certification requirements of the preceding proviso if the President determines that it is vital to the national security interests of the United States</proviso>: <proviso><i>Provided further</i>, That no funds may be obligated for KEDO until 30 calendar days after submission to Congress of the waiver permitted under the preceding proviso</proviso>: <proviso><i>Provided further</i>, That the obligation of any funds for KEDO shall be subject to the regular notification procedures of the Committees on Appropriations</proviso>: <proviso><i>Provided <sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote>further</i>, That the Secretary of State shall submit to the appropriate congressional committees an annual report (to be submitted with the annual presentation for appropriations) providing a full and detailed accounting of the fiscal year request for the United States contribution to KEDO, the expected operating budget of KEDO, to include unpaid debt, proposed annual costs associated with heavy fuel oil purchases, and the amount of funds pledged by other donor nations and organizations to support KEDO activities on a per country basis, and other related activities</proviso>: <proviso><i>Provided further</i>, That of the funds made available under this heading, up to $10,000,000 may be made available to KEDO, in addition to funds otherwise made available under this heading for KEDO, if the Secretary of State certifies and reports to the Committees on Appropriations that, except for the funds made available under this proviso, funds sufficient to cover all outstanding debts owed by KEDO for heavy fuel oil have been provided to KEDO by donors other than the United States</proviso>.</content> </appropriations> </appropriations> <num value="I">TITLE III—</num><heading>MILITARY ASSISTANCE</heading> <appropriations level="intermediate"> <heading>Funds Appropriated to the President</heading> <appropriations level="small"> <heading>international military education and training</heading> <content>For necessary expenses to carry out the provisions of section 541 of the Foreign Assistance Act of 1961, $50,000,000: <proviso><i>Provided, </i>That the civilian personnel for whom military education and training may be provided under this heading may include civilians who are not members of a government whose participation would contribute to improved civil-military relations, civilian control of the military, or respect for human rights</proviso>: <proviso><i>Provided further</i>, That funds appropriated under this heading for grant financed military education and training for Indonesia and Guatemala may only be available for expanded international military education and training and funds made available for Guatemala may only be <page identifier="/us/stat/111/2401">111 STAT. 2401</page>provided through the regular notification procedures of the Committees on Appropriations</proviso>: <proviso><i>Provided further</i>, That none of the funds appropriated under this heading may be made available to support grant financed military education and training at the School of the Americas unless: (1) the Secretary of Defense certifies that <sidenote><p class="indent0 firstIndent0 fontsize8">Certification.</p></sidenote>the instruction and training provided by the School of the Americas is fully consistent with training and doctrine, particularly with respect to the observance of human rights, provided by the Department of Defense to United States military students at Department of Defense institutions whose primary purpose is to train United States military personnel; (2) the Secretary of Defense certifies <sidenote><p class="indent0 firstIndent0 fontsize8">Certification.</p></sidenote>that the Secretary of State, in consultation with the Secretary of Defense, has developed and issued specific guidelines governing the selection and screening of candidates for instruction at the School of the Americas; and (3) the Secretary of Defense submits <sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote>to the Committees on Appropriations a report detailing the training activities of the School of the Americas and a general assessment regarding the performance of its graduates during 1996</proviso>.</content> </appropriations> <appropriations level="small"> <heading>foreign military financing program</heading> <content><p class="indent0 firstIndent1 fontsize10">For expenses necessary for grants to enable the President to carry out the provisions of section 23 of the Arms Export Control Act, $3,296,550,000: <proviso><i>Provided</i>, That of the funds appropriated under this heading, not less than $1,800,000,000 shall be available for grants only for Israel, and not less than $1,300,000,000 shall be made available for grants only for Egypt: Provided further, That the funds appropriated by this paragraph for Israel shall be disbursed within 30 days of enactment of this Act or by October 31, 1997, whichever is later</proviso>: <proviso><i>Provided further</i>, That to the extent that the Government of Israel requests that funds be used for such purposes, grants made available for Israel by this paragraph shall, as agreed by Israel and the United States, be available for advanced weapons systems, of which not less than $475,000,000 shall be available for the procurement in Israel of defense articles and defense services, including research and development</proviso>: <proviso><i>Provided further</i>, That of the funds appropriated by this paragraph, not less than $75,000,000 shall be available for assistance for Jordan</proviso>: <proviso><i>Provided further</i>, That during fiscal year 1998 the President is authorized to, and shall, direct drawdowns of defense articles from the stocks of the Department of Defense, defense services of the Department of Defense, and military education and training of an aggregate value of not less than $25,000,000 under the authority of this proviso for Jordan for the purposes of part II of the Foreign Assistance Act of 1961, and any amount so directed shall count toward meeting the earmark in the previous proviso</proviso>: <proviso><i>Provided further</i>, That section 506(c) of the Foreign Assistance Act of 1961 shall apply, and section 632(d) of the Foreign Assistance Act of 1961 snail not apply, to any such drawdown</proviso>: <proviso><i>Provided further</i>, That of the funds appropriated by this paragraph, a total of $18,300,000 should be available for assistance for Estonia, Latvia, and Lithuania</proviso>: <proviso><i>Provided further</i>, That none of the funds made available under this heading shall be available for any non-NATO country participating in the Partnership for Peace Program except through the regular notification procedures of the Committees on Appropriations</proviso>: <proviso><i>Provided further</i>, That funds appropriated by this paragraph shall be nonrepayable notwithstanding any requirement in section 23 of the Arms Export Control Act</proviso>: <i>Provided further</i>, <page identifier="/us/stat/111/2402">111 STAT. 2402</page>That funds made available under this paragraph shall be obligated upon apportionment in accordance with paragraph (5)(C) of title 31, United States Code, section 1501(a): <proviso><i>Provided further</i>, That $50,000,000 of the funds appropriated or otherwise made available under this heading should be made available for the purpose of facilitating the integration of Poland, Hungary, and the Czech Republic into the North Atlantic Treaty Organization</proviso>.</p> <p class="indent0 firstIndent1 fontsize10">For the cost, as defined in section 502 of the Congressional Budget Act of 1974, of direct loans authorized by section 23 of the Arms Export Control Act as follows: cost of direct loans, $60,000,000: <proviso><i>Provided</i>, That these funds are available to subsidize gross obligations for the principal amount of direct loans of not to exceed $657,000,000: Provided further, That the rate of interest charged on such loans shall be not less than the current average market yield on outstanding marketable obligations of the United States of comparable maturities</proviso>: <proviso><i>Provided further</i>, That funds appropriated under this paragraph shall be made available for Greece and Turkey only on a loan basis, and the principal amount of direct loans for each country shall not exceed the following: $105,000,000 only for Greece and $150,000,000 only for Turkey</proviso>.</p> <p class="indent0 firstIndent1 fontsize10">None of the funds made available under this heading shall be available to finance the procurement of defense articles, defense services, or design and construction services that are not sold by the United States Government under the Arms Export Control Act unless the foreign country proposing to make such procurements has first signed an agreement with the United States Government specifying the conditions under which such procurements may be financed with such funds: <proviso><i>Provided</i>, That all country and funding level increases in allocations shall be submitted through the regular notification procedures of section 515 of this Act</proviso>: <proviso><i>Provided further</i>, That none of the funds appropriated under this heading shall be available for Sudan and Liberia</proviso>: <proviso><i>Provided further</i>, That funds made available under this heading may be used, notwithstanding any other provision of law, for demining, the clearance of unexploded ordnance, and related activities and may include activities implemented through nongovernmental and international organizations</proviso>: <proviso><i>Provided further</i>, That only those countries for which assistance was justified for the “Foreign Military Sales Financing Program” in the fiscal year 1989 congressional presentation for security assistance programs may utilize funds made available under this heading for procurement of defense articles, defense services or design and construction services that are not sold by the United States Government under the Arms Export Control Act</proviso>: <proviso><i>Provided further</i>, That, subject to the regular notification procedures of the Committees on Appropriations, funds made available under this heading for the cost of direct loans may also be used to supplement the funds available under this heading for grants, and funds made available under this heading for grants may also be used to supplement the funds available under this heading for the cost of direct loans</proviso>: <proviso><i>Provided further</i>, That funds appropriated under this heading shall be expended at the minimum rate necessary to make timely payment for defense articles and services</proviso>: <proviso><i>Provided further</i>, That not more than $23,250,000 of the funds appropriated under this heading may be obligated for necessary expenses, including the purchase of passenger motor vehicles for replacement only for use outside of the United States, for the general costs of administering military assistance and sales</proviso>: <proviso><i>Provided further</i>, That none of the funds <page identifier="/us/stat/111/2403">111 STAT. 2403</page>under this heading shall be available for Guatemala</proviso>: <proviso><i>Provided further</i>, That not more than $350,000,000 of funds realized pursuant to section 21(e)(1)(A) of the Arms Export Control Act may be obligated for expenses incurred by the Department of Defense during fiscal year 1998 pursuant to section 43(b) of the Arms Export Control Act, except that this limitation may be exceeded only through the regular notification procedures of the Committees on Appropriations</proviso>.</p></content> </appropriations> <appropriations level="small"> <heading>peacekeeping operations</heading> <content>For necessary expenses to carry out the provisions of section 551 of the Foreign Assistance Act of 1961, $77,500,000: <proviso><i>Provided</i>, That none of the funds appropriated under this heading shall be obligated or expended except as provided through the regular notification procedures of the Committees on Appropriations</proviso>.</content> </appropriations> </appropriations> <num value="I">TITLE IV—</num><heading>MULTILATERAL ECONOMIC ASSISTANCE</heading> <appropriations level="intermediate"> <heading>Funds Appropriated to the President</heading> <appropriations level="small"> <heading>international financial institutions</heading> <appropriations level="small"> <heading>contribution to the international bank for reconstruction and development</heading> <content>For payment to the International Bank for Reconstruction and Development by the Secretary of the Treasury, for the United States contribution to the Global Environment Facility (GEF), $47,500,000, to remain available until September 30, 1999.</content> </appropriations> </appropriations> <appropriations level="small"> <heading>contribution to the international development association</heading> <content>For payment to the International Development Association by the Secretary of the Treasury, $1,034,503,100, to remain available until expended, of which $234,503,100 shall be available to pay for the tenth replenishment: <proviso><i>Provided,</i> That none of the funds may be obligated or made available until the Secretary of the Treasury certifies to the Committees on Appropriations that procurement restrictions applicable to United States firms under the terms of the Interim Trust Fund have been lifted from all funds which Interim Trust Fund donors proposed to set aside for review of procurement restrictions at the conclusion of the February 1997 IDA Deputies Meeting in Paris</proviso>.</content> </appropriations> <appropriations level="small"> <heading>contribution to the inter-american development bank</heading> <content>For payment to the Inter-American Development Bank by the Secretary of the Treasury, for the United States share of the paid- in share portion of the increase in capital stock, $25,610,667, and for the United States share of the increase in the resources of the Fund for Special Operations, $20,835,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>limitation on callable capital subscriptions</heading> <content>The United States Governor of the Inter-American Development Bank may subscribe without fiscal year limitation to the callable capital portion of the United States share of such capital stock in an amount not to exceed $1,503,718,910.</content> </appropriations> <page identifier="/us/stat/111/2404">111 STAT. 2404</page> <appropriations level="small"> <heading>contribution to the enterprise for the americas multilateral investment fund</heading> <content>For payment to the Enterprise for the Americas Multilateral Investment Fund by the Secretary of the Treasury, for the United States contribution to the Fluid to be administered by the Inter-American Development Bank, $30,000,000 to remain available until expended, which shall be available for contributions previously due.</content> </appropriations> <appropriations level="small"> <heading>contribution to the asian development bank</heading> <content>For payment to the Asian Development Bank by the Secretary of the Treasury for the United States share of the paid-in portion of the increase in capital stock, $13,221,596, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>limitation on callable capital subscriptions</heading> <content>The United States Governor of the Asian Development Bank may subscribe without fiscal year limitation to the callable capital portion of the United States share of such capital stock in an amount not to exceed $647,858,204.</content> </appropriations> <appropriations level="small"> <heading>contribution to the asian development fund</heading> <content>For the United States contribution by the Secretary of the Treasury to the increases in resources of the Asian Development Fund, as authorized by the Asian Development Bank Act, as amended (Public Law 89–369), $150,000,000, of which $50,000,000 shall be available for contributions previously due, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>contribution to the african development fund</heading> <content>For the United States contribution by the Secretary of the Treasury to the increase in resources of the African Development Fund, $45,000,000, to remain available until expended and which shall be available for contributions previously due.</content> </appropriations> <appropriations level="small"> <heading>contribution to the european bank for reconstruction and development</heading> <content>For payment to the European Bank for Reconstruction and Development by the Secretary of the Treasury, $35,778,717, for the United States share of the paid-in portion of the increase in capital stock, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>limitation on callable capital subscriptions</heading> <content>The United States Governor of the European Bank for Reconstruction and Development may subscribe without fiscal year limitation to the callable capital portion of the United States share of such capital stock in an amount not to exceed $123,237,803.</content> </appropriations> <appropriations level="small"> <heading>north american development bank</heading> <content>For payment to the North American Development Bank by the Secretary of the Treasury, for the United States share of the paid-in portion of the capital stock, $56,500,000, to remain available until expended of which $250,000 shall be available for contributions <page identifier="/us/stat/111/2405">111 STAT. 2405</page>previously due: <proviso><i>Provided</i>, That none of the funds appropriated under this heading that are made available for the Community Adjustment and Investment Program shall be used for purposes other than those set out in the binational agreement establishing the Bank</proviso>: <proviso><i>Provided further</i>, That of the amount appropriated under this heading, not more than $41,250,000 may be expended for the purchase of such capital shares in fiscal year 1998</proviso>.</content> </appropriations> <appropriations level="small"> <heading>limitation on callable capital subscriptions</heading> <content>The United States Governor of the North American Development Bank may subscribe without fiscal year limitation to the callable capital portion of the United States share of the capital stock of the North American Development Bank in an amount not to exceed $318,750,000.</content> </appropriations> <appropriations level="small"> <heading>international organizations and programs</heading> <content>For necessary expenses to carry out the provisions of section 301 of the Foreign Assistance Act of 1961, and of section 2 of the United Nations Environment Program Participation Act of 1973, $192,000,000: <proviso><i>Provided</i>, That none of the funds appropriated under this heading shall be made available for the United Nations Fund for Science and Technology</proviso>: <proviso><i>Provided further</i>, That none of the funds appropriated under this heading that are made available to the United Nations Population Fund (UNFPA) shall be made available for activities in the People’s Republic of China</proviso>: <proviso><i>Provided further</i>, That not more than $25,000,000 of the funds appropriated under this heading may be made available to UNFPA</proviso>: <proviso><i>Provided further</i>, That not more than one-half of this amount may be provided <sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote>to UNFPA before March 1, 1998, and that no later than February 15, 1998, the Secretary of State shall submit a report to the Committees on Appropriations indicating the amount UNFPA is budgeting for the People’s Republic of China in 1998</proviso>: <proviso><i>Provided further</i>, That any amount UNFPA plans to spend in the People’s Republic of China in 1998 shall be deducted from the amount of funds provided to UNFPA after March 1, 1998, pursuant to the previous provisos</proviso>: <proviso><i>Provided further</i>, That with respect to any funds appropriated under this heading that are made available to UNFPA, UNFPA shall be required to maintain such funds in a separate account and not commingle them with any other funds</proviso>: <proviso><i>Provided further</i>, That none of the funds appropriated under this heading may be made available to the Korean Peninsula Energy Development Organization (KEDO) or the International Atomic Energy Agency (IAEA)</proviso>: <proviso><i>Provided further</i>, That not less than $4,000,000 should be made available to the World Food Program</proviso>.</content> </appropriations> </appropriations> <num value="V">TITLE V—</num><heading>GENERAL PROVISIONS</heading> <section> <heading>OBLIGATIONS DURING LAST MONTH OF AVAILABILITY</heading> <num value="501"><inline class="smallCaps">Sec.</inline> 501. </num><content>Except for the appropriations entitled “International Disaster Assistance”, and “United States Emergency Refugee and Migration Assistance Fund”, not more than 15 percent of any appropriation item made available by this Act shall be obligated during the last month of availability.</content></section> <page identifier="/us/stat/111/2406">111 STAT. 2406</page> <section> <heading>PROHIBITION OF BILATERAL FUNDING FOR INTERNATIONAL FINANCIAL INSTITUTIONS</heading> <num value="502"><inline class="smallCaps">Sec.</inline> 502. </num><content>Notwithstanding section 614 of the Foreign Assistance Act of 1961, as amended, none of the funds contained in title II of this Act may be used to carry out the provisions of section 209(d) of the Foreign Assistance Act of 1961.</content></section> <section><heading>LIMITATION ON RESIDENCE EXPENSES</heading> <num value="503"><inline class="smallCaps">Sec.</inline> 503. </num><content>Of the funds appropriated or made available pursuant to this Act, not to exceed $126,500 shall be for official residence expenses of the Agency for International Development during the current fiscal year: <proviso><i>Provided,</i> That appropriate steps shall be taken to assure that, to the maximum extent possible, United States-owned foreign currencies are utilized in lieu of dollars</proviso>.</content></section> <section><heading>LIMITATION ON EXPENSES</heading> <num value="504"><inline class="smallCaps">Sec.</inline> 504. </num><content>Of the funds appropriated or made available pursuant to this Act, not to exceed $5,000 shall be for entertainment expenses of the Agency for International Development during the current fiscal year.</content></section> <section><heading>LIMITATION ON REPRESENTATIONAL ALLOWANCES</heading> <num value="505"><inline class="smallCaps">Sec.</inline> 505. </num><content>Of the funds appropriated or made available pursuant to this Act, not to exceed $95,000 shall be available for representation allowances for the Agency for International Development during the current fiscal year: <proviso><i>Provided,</i> That appropriate steps shall be taken to assure that, to the maximum extent possible, United States-owned foreign currencies are utilized in lieu of dollars</proviso>: <proviso><i>Provided further</i>, That of the funds made available by this Act for general costs of administering military assistance and sales under the heading “Foreign Military Financing Program”, not to exceed $2,000 shall be available for entertainment expenses and not to exceed $50,000 shall be available for representation allowances</proviso>: <proviso><i>Provided further</i>, That of the funds made available by this Act under the heading ‘International Military Education and Training”, not to exceed $50,000 shall be available for entertainment allowances</proviso>: <proviso><i>Provided further</i>, That of the funds made available by this Act for the Inter-American Foundation, not to exceed $2,000 shall be available for entertainment and representation allowances</proviso>: <proviso><i>Provided further</i>, That of the funds made available by this Act for the Peace Corps, not to exceed a total of $4,000 shall be available for entertainment expenses</proviso>: <proviso><i>Provided further</i>, That of the funds made available by this Act under the heading “Trade and Development Agency”, not to exceed $2,000 shall be available for representation and entertainment allowances</proviso>.</content></section> <section><heading>PROHIBITION ON FINANCING NUCLEAR GOODS</heading> <num value="506"><inline class="smallCaps">Sec.</inline> 506. </num><content>None of the funds appropriated or made available (other than funds for “Nonproliferation, Anti-terrorism, Demining and Related Programs”) pursuant to this Act, for carrying out the Foreign Assistance Act of 1961, may be used, except for purposes of nuclear safety, to finance the export of nuclear equipment, fuel, or technology.</content></section> <page identifier="/us/stat/111/2407">111 STAT. 2407</page> <section><heading>PROHIBITION AGAINST DIRECT FUNDING FOR CERTAIN COUNTRIES</heading> <num value="507"><inline class="smallCaps">Sec.</inline> 507. </num><content>None of the funds appropriated or otherwise made available pursuant to this Act shall be obligated or expended to finance directly any assistance or reparations to Cuba, Iraq, Libya, North Korea, Iran, Sudan, or Syria: <proviso><i>Provided</i>, That for purposes of this section, the prohibition on obligations or expenditures shall include direct loans, credits, insurance and guarantees of the Export-Import Bank or its agents</proviso>.</content></section> <section><heading>MILITARY COUPS</heading> <num value="508"><inline class="smallCaps">Sec.</inline> 508. </num><content>None of the funds appropriated or otherwise made available pursuant to this Act shall be obligated or expended to finance directly any assistance to any country whose duly elected head of government is deposed by military coup or decree: <proviso><i>Provided,</i> That assistance may be resumed to such country if the President determines and reports to the Committees on Appropriations that subsequent to the termination of assistance a democratically elected government has taken office</proviso>.</content></section> <section><heading>TRANSFERS BETWEEN ACCOUNTS</heading> <num value="509"><inline class="smallCaps">Sec.</inline> 509. </num><content>None of the funds made available by this Act may be obligated under an appropriation account to which they were not appropriated, except for transfers specifically provided for in this Act, unless the President, prior to the exercise of any authority contained in the Foreign Assistance Act of 1961 to transfer funds, consults with and provides a written policy justification to the Committees on Appropriations of the House of Representatives and the Senate: <proviso><i>Provided</i>, That the exercise of such authority shall be subject to the regular notification procedures of the Committees on Appropriations</proviso>.</content></section> <section><heading>DEOBLIGATION/REOBLIGATION AUTHORITY</heading> <num value="510"><inline class="smallCaps">Sec.</inline> 510. </num><subsection class="inline"><num value="a">(a) </num><content>Amounts certified pursuant to section 1311 of the Supplemental Appropriations Act, 1955, as having been obligated against appropriations heretofore made under the authority of the Foreign Assistance Act of 1961 for the same general purpose as any of the headings under title II of this Act are, if deobligated, hereby continued available for the same period as the respective appropriations under such headings or until September 30, 1998, whichever is later, and for the same general purpose, and for countries within the same region as originally obligated: <proviso><i>Provided, </i>That the Appropriations Committees of both Houses of the Congress are notified 15 days in advance of the reobligation of such binds in accordance with regular notification procedures of the Committees on Appropriations</proviso>.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Obligated balances of funds appropriated to carry out section 23 of the Arms Export Control Act as of the end of the fiscal year immediately preceding the current fiscal year are, if deobligated, hereby continued available during the current fiscal year for the same purpose under any authority applicable to such appropriations under this Act: <proviso><i>Provided</i>, That the authority of this subsection may not be used in fiscal year 1998</proviso>.</content></subsection></section> <page identifier="/us/stat/111/2408">111 STAT. 2408</page> <section><heading>AVAILABILITY OF FUNDS</heading> <num value="511"><inline class="smallCaps">Sec.</inline> 511. </num><content>No part of any appropriation contained in this Act shall remain available for obligation after the expiration of the current fiscal year unless expressly so provided in this Act: <proviso><i>Provided,</i> That funds appropriated for the purposes of chapters 1, 8, and 11 of part I, section 667, and chapter 4 of part II of the Foreign Assistance Act of 1961, as amended, and funds provided under the heading “Assistance for Eastern Europe and the Baltic States”, shall remain available until expended if such funds are initially obligated before the expiration of their respective periods of availability contained in this Act</proviso>: <proviso><i>Provided further</i>, That, notwithstanding any other provision of this Act, any funds made available for the purposes of chapter 1 of part I and chapter 4 of part II of the Foreign Assistance Act of 1961 which are allocated or obligated for cash disbursements in order to address balance of payments or economic policy reform objectives, shall remain available until expended</proviso>: <proviso><i>Provided further</i>, That the report required by section 653(a) of the Foreign Assistance Act of 1961 shall designate for each country, to the extent known at the time of submission of such report, those funds allocated for cash disbursement for balance of payment and economic policy reform purposes</proviso>.</content></section> <section><heading>LIMITATION ON ASSISTANCE TO COUNTRIES IN DEFAULT</heading> <num value="512"><inline class="smallCaps">Sec.</inline> 512. </num><content>No part of any appropriation contained in this Act shall be used to furnish assistance to any country which is in default during a period in excess of one calendar year in payment to the United States of principal or interest on any loan made to such country by the United States pursuant to a program for which funds are appropriated under this Act: <proviso><i>Provided,</i> That this section and section 620(q) of the Foreign Assistance Act of 1961 shall not apply to funds made available in this Act or during the current fiscal year for Nicaragua and Liberia, and for any narcotics-related assistance for Colombia, Bolivia, and Peru authorized by the Foreign Assistance Act of 1961 or the Arms Export Control Act</proviso>.</content></section> <section><heading>COMMERCE AND TRADE</heading> <num value="513"><inline class="smallCaps">Sec.</inline> 513. </num><subsection class="inline"><num value="a">(a) </num><content>None of the funds appropriated or made available pursuant to this Act for direct assistance and none of the funds otherwise made available pursuant to this Act to the Export-Import Bank and the Overseas Private Investment Corporation shall be obligated or expended to finance any loan, any assistance or any other financial commitments for establishing or expanding production of any commodity for export by any country other than the United States, if the commodity is likely to be in surplus on world markets at the time the resulting productive capacity is expected to become operative and if the assistance will cause substantial injury to United States producers of the same, similar, or competing <sidenote><p class="indent0 firstIndent0 fontsize8">Notification.</p></sidenote>commodity: <i>Provided,</i> That such prohibition shall not apply to the Export-Import Bank if in the judgment of its Board of Directors the benefits to industry and employment in the United States are likely to outweigh the injury to United States producers of the same, similar, or competing commodity, and the Chairman of the Board so notifies the Committees on Appropriations.</content></subsection> <page identifier="/us/stat/111/2409">111 STAT. 2409</page> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>None of the funds appropriated by this or any other Act to carry out chapter 1 of part I of the Foreign Assistance Act of 1961 shall be available for any testing or breeding feasibility study, variety improvement or introduction, consultancy, publication, conference, or training in connection with the growth or production in a foreign country of an agricultural commodity for export which would compete with a similar commodity grown or produced in the United States: Provided, That this subsection shall not prohibit—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>activities designed to increase food security in developing countries where such activities will not have a significant impact in the export of agricultural commodities of the United States; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>research activities intended primarily to benefit American producers.</content></paragraph></subsection></section> <section><heading>SURPLUS COMMODITIES</heading> <num value="514"><inline class="smallCaps">Sec.</inline> 514. </num><content>The Secretary of the Treasury shall instruct <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s262h">22 USC 262h</ref> note.</p></sidenote>the United States Executive Directors of the International Bank for Reconstruction and Development, the International Development Association, the International Finance Corporation, the Inter-American Development Bank, the International Monetary Fund, the Asian Development Bank, the Inter-American Investment Corporation, the North American Development Bank, the European Bank for Reconstruction and Development, the African Development Bank, and the African Development Fund to use the voice and vote of the United States to oppose any assistance by these institutions, using funds appropriated or made available pursuant to this Act, for the production or extraction of any commodity or mineral for export, if it is in surplus on world markets and if the assistance will cause substantial injury to United States producers of the same, similar, or competing commodity.</content></section> <section><heading>NOTIFICATION REQUIREMENTS</heading> <num value="515"><inline class="smallCaps">Sec.</inline> 515. </num><subsection class="inline"><num value="a">(a) </num><content>For the purposes of providing the executive branch with the necessary administrative flexibility, none of the funds made available under this Act for “<shortTitle role="act">Child Survival and Disease Programs Fund</shortTitle>”, “<shortTitle role="act">Development Assistance</shortTitle>”, “<shortTitle role="act">International organizations and programs</shortTitle>”, “<shortTitle role="act">Trade and Development Agency</shortTitle>”, “<shortTitle role="act">International narcotics control</shortTitle>”, “<shortTitle role="act">Narcotics Interdiction</shortTitle>”, “<shortTitle role="act">Assistance for Eastern Europe and the Baltic States</shortTitle>”, “<shortTitle role="act">Assistance for the New Independent States of the Former Soviet Union</shortTitle>”, “<shortTitle role="act">Economic Support Fund</shortTitle>”, “<shortTitle role="act">Peacekeeping operations</shortTitle>”, “<shortTitle role="act">Operating expenses of the Agency for International Development</shortTitle>”, “<shortTitle role="act">Operating expenses of the Agency for International Development Office of Inspector General</shortTitle>”, “<shortTitle role="act">Nonproliferation, anti-terrorism, demining and related programs</shortTitle>”, “<shortTitle role="act">Foreign Military Financing Program</shortTitle>”, “<shortTitle role="act">International military education and training</shortTitle>”, “<shortTitle role="act">Peace Corps</shortTitle>”, “<shortTitle role="act">Migration and refugee assistance</shortTitle>”, shall be available for obligation for activities, programs, projects, type of materiel assistance, countries, or other operations not justified or in excess of the amount justified to the Appropriations Committees for obligation under any of these specific headings unless the Appropriations Committees of both Houses of Congress are previously notified 15 days in advance: <proviso><i>Provided,</i> That the President shall not enter into any commitment of funds appropriated for the purposes of section 23 of the Arms <page identifier="/us/stat/111/2410">111 STAT. 2410</page>Export Control Act for the provision of major defense equipment, other than conventional ammunition, or other major defense items defined to be aircraft, ships, missiles, or combat vehicles, not previously justified to Congress or 20 percent in excess of the quantities justified to Congress unless the Committees on Appropriations are notified 15 days in advance of such commitment</proviso>: <proviso><i>Provided further</i>, That this section shall not apply to any reprogramming for an activity, program, or project under chapter 1 of part I of the Foreign Assistance Act of 1961 of less than 10 percent of the amount previously justified to the Congress for obligation for such activity, program, or project for the current fiscal year</proviso>: <proviso><i>Provided further</i>, That the requirements of this section or any similar provision of this Act or any other Act, including any prior Act requiring notification in accordance with the regular notification procedures of the Committees on Appropriations, may be waived if failure to do so would pose a substantial risk to human health or welfare</proviso>: <proviso><i>Provided further</i>, That in case of any such waiver, notification to the Congress, or the appropriate congressional committees, shall be provided as early as practicable, but in no event later than three days after taking the action to which such notification requirement was applicable, in the context of the circumstances necessitating such waiver</proviso>: <proviso><i>Provided further</i>, That any notification provided pursuant to such a waiver shall contain an explanation of the emergency circumstances</proviso>.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Drawdowns made pursuant to section 506(a)(2) of the Foreign Assistance Act of 1961 shall be subject to the regular notification procedures of the Committees on Appropriations.</content></subsection></section> <section><heading>LIMITATION ON AVAILABILITY OF FUNDS FOR INTERNATIONAL ORGANIZATIONS AND PROGRAMS</heading> <num value="516"><inline class="smallCaps">Sec.</inline> 516. </num><content>Notwithstanding any other provision of law or of this Act, none of the funds provided for “International Organizations and Programs” shall be available for the United States proportionate share, in accordance with section 307(c) of the Foreign Assistance Act of 1961, for any programs identified in section 307, or for Libya, Iran, or, at the discretion of the President, Communist countries listed in section 620(f) of the Foreign Assistance Act of 1961, as amended: Provided, That, subject to the regular notification procedures of the Committees on Appropriations, hinds appropriated under this Act or any previously enacted Act making appropriations for foreign operations, export financing, and related programs, which are returned or not made available for organizations and programs because of the implementation of this section or any similar provision of law, shall remain available for obligation through September 30, 1999.</content></section> <section><heading>ECONOMIC SUPPORT FUND ASSISTANCE FOR ISRAEL</heading> <num value="517"><inline class="smallCaps">Sec.</inline> 517. </num><content>The Congress finds that progress on the peace process in the Middle East is vitally important to United States security interests in the region. The Congress recognizes that, in fulfilling its obligations under the Treaty of Peace Between the Arab Republic of Egypt and the State of Israel, done at Washington on March 26, 1979, Israel incurred severe economic burdens. Furthermore, the Congress recognizes that an economically and militarily secure Israel serves the security interests of the United States, for a secure Israel is an Israel which has the incentive and confidence <page identifier="/us/stat/111/2411">111 STAT. 2411</page>to continue pursuing the peace process. Therefore, the Congress declares that, subject to the availability of appropriations, it is the policy and the intention of the United States that the funds provided in annual appropriations for the Economic Support Fund which are allocated to Israel shall not be less them the annual debt repayment (interest and principal) from Israel to the United States Government in recognition that such a principle serves United States interests in the region.</content></section> <section><heading>PROHIBITION ON FUNDING FOR ABORTIONS AND INVOLUNTARY STERILIZATION</heading> <num value="518"><inline class="smallCaps">Sec.</inline> 518. </num><content>None of the funds made available to carry out part I of the Foreign Assistance Act of 1961, as amended, may be used to pay for the performance of abortions as a method of family planning or to motivate or coerce any person to practice abortions. None of the funds made available to carry out part I of the Foreign Assistance Act of 1961, as amended, may be used to pay for the performance of involuntary sterilization as a method of family planning or to coerce or provide any financial incentive to any person to undergo sterilizations. None of the funds made available to carry out part I of the Foreign Assistance Act of 1961, as amended, may be used to pay for any biomedical research which relates in whole or in part, to methods of, or the performance of, abortions or involuntary sterilization as a means of family planning. None of the funds made available to carry out part I of the Foreign Assistance Act of 1961, as amended, may be obligated or expended for any country or organization if the President certifies that the use of these funds by any such country or organization would violate any of the above provisions related to abortions and involuntary sterilizations: <proviso><i>Provided,</i> That none of the funds made available under this Act may be used to lobby for or against abortion</proviso>.</content></section> <section><heading>REPORTING REQUIREMENT</heading> <num value="519"><inline class="smallCaps">Sec.</inline> 519. </num><chapeau>Section 25 of the Arms Export Control Act is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s2765">22 USC 2765</ref>.</p></sidenote>amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subsection (a), by striking “<quotedText>Congress</quotedText>” and inserting in lieu thereof “appropriate congressional committees”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in subsection (b), by striking “<quotedText>the Committee on Foreign Relations of the Senate or the Committee on Foreign Affairs of the House of Representatives</quotedText>” and inserting in lieu thereof “any of the congressional committees described in subsection (e)”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by adding the following subsection: <quotedContent><subsection class="indent0 fontsize10"><num value="e">“(e) </num><content>As used in this section, the term ‘appropriate congressional committees’ means the Committee on Foreign Relations and the Committee on Appropriations of the Senate and the Committee on International Relations and the Committee on Appropriations of the House of Representatives.”.</content></subsection></quotedContent></content></paragraph></section> <section><heading>SPECIAL NOTIFICATION REQUIREMENTS</heading> <num value="520"><inline class="smallCaps">Sec.</inline> 520. </num><content>None of the funds appropriated in this Act shall be obligated or expended for Colombia, Haiti, Liberia, Pakistan, Panama, Peru, Serbia, Sudan, or the Democratic Republic of Congo except as provided through the regular notification procedures of the Committees on Appropriations.</content></section> <page identifier="/us/stat/111/2412">111 STAT. 2412</page> <section><heading>DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY</heading> <num value="521"><inline class="smallCaps">Sec.</inline> 521. </num><content>For the purpose of this Act, “program, project, and activity” shall be defined at the appropriations Act account level and shall include all appropriations and authorizations Acts earmarks, ceilings, and limitations with the exception that for the following accounts: Economic Support Fund and Foreign Military Financing Program, “program, project, and activity” shall also be considered to include country, regional, and central program level funding within each such account; for the development assistance accounts of the Agency for International Development “program, project, and activity” shall also be considered to include central program level funding, either as: (1) justified to the Congress; or (2) allocated by the executive branch in accordance with a report, to be provided to the Committees on Appropriations within 30 days of enactment of this Act, as required by section 653(a) of the Foreign Assistance Act of 1961.</content></section> <section><heading>CHILD SURVIVAL, AIDS, AND OTHER ACTIVITIES</heading> <num value="522"><inline class="smallCaps">Sec.</inline> 522. </num><content>Up to $10,000,000 of the funds made available by this Act for assistance for family planning, health, child survival, basic education, and AIDS, may be used to reimburse United States Government agencies, agencies of State governments, institutions of higher learning, and private and voluntary organizations for the full cost of individuals (including for the personal services of such individuals) detailed or assigned to, or contracted by, as the case may be, the Agency for International Development for the purpose of carrying out family planning activities, child survival, and basic education activities, and activities relating to research on, and the treatment and control of acquired immune deficiency syndrome in developing countries: <proviso><i>Provided,</i> That funds appropriated by this Act that are made available for child survival activities or activities relating to research on, and the treatment and control of, acquired immune deficiency syndrome may be made available notwithstanding any provision of law that restricts assistance to foreign countries</proviso>: <proviso><i>Provided further</i>, That funds appropriated by this Act that are made available for family planning activities may be made available notwithstanding section 512 of this Act and section 620(q) of the Foreign Assistance Act of 1961</proviso>.</content></section> <section><heading>PROHIBITION AGAINST INDIRECT FUNDING TO CERTAIN COUNTRIES</heading> <num value="523"><inline class="smallCaps">Sec.</inline> 523. </num><content>None of the funds appropriated or otherwise made available pursuant to this Act shall be obligated to finance indirectly any assistance or reparations to Cuba, Iraq, Libya, Iran, Syria, North Korea, or the People’s Republic of China, unless the President of the United States certifies that the withholding of these funds is contrary to the national interest of the United States.</content></section> <section><heading>RECIPROCAL LEASING</heading> <num value="524"><inline class="smallCaps">Sec.</inline> 524. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s2796">22 USC 2796</ref>.</p></sidenote><content>Section 61(a) of the Arms Export Control Act is amended by striking out “1997” and inserting in lieu thereof “1998”.</content></section> <section><heading>NOTIFICATION ON EXCESS DEFENSE EQUIPMENT</heading> <num value="525"><inline class="smallCaps">Sec.</inline> 525. </num><content>Prior to providing excess Department of Defense articles in accordance with section 516(a) of the Foreign Assistance <page identifier="/us/stat/111/2413">111 STAT. 2413</page>Act of 1961, the Department of Defense shall notify the Committees on Appropriations to the same extent and under the same conditions as are other committees pursuant to subsection (c) of that section: <proviso><i>Provided,</i> That before issuing a letter of offer to sell excess defense articles under the Arms Export Control Act, the Department of Defense shall notify the Committees on Appropriations in accordance with the regular notification procedures of such Committees</proviso>: <proviso><i>Provided further</i>, That such Committees shall also be informed of the original acquisition cost of such defense articles</proviso>.</content></section> <section><heading>AUTHORIZATION REQUIREMENT</heading> <num value="526"><inline class="smallCaps">Sec.</inline> 526. </num><content>Funds appropriated by this Act may be obligated and expended notwithstanding section 10 of Public Law 91–672 and section 15 of the State Department Basic Authorities Act of 1956.</content></section> <section><heading>PROHIBITION ON BILATERAL ASSISTANCE TO TERRORIST COUNTRIES</heading> <num value="527"><inline class="smallCaps">Sec.</inline> 527. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Notwithstanding any other provision of law, funds appropriated for bilateral assistance under any heading of this Act and funds appropriated under any such heading in a provision of law enacted prior to enactment of this Act, shall not be made available to any country which the President determines—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>grants sanctuary from prosecution to any individual or group which has committed an act of international terrorism; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>otherwise supports international terrorism.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The President may waive the application of subsection (a) to a country if the President determines that national security or humanitarian reasons justify such waiver. The President shall <sidenote><p class="indent0 firstIndent0 fontsize8">President.</p> <p class="indent0 firstIndent0 fontsize8">Federal Register, publication.</p> <p class="indent0 firstIndent0 fontsize8">Notification.</p> </sidenote>publish each waiver in the Federal Register and, at least 15 days before the waiver takes effect, shall notify the Committees on Appropriations of the waiver (including the justification for the waiver) in accordance with the regular notification procedures of the Committees on Appropriations.</content></subsection></section> <section><heading>COMMERCIAL LEASING OF DEFENSE ARTICLES</heading> <num value="528"><inline class="smallCaps">Sec.</inline> 528. </num><content>Notwithstanding any other provision of law, and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s2763">22 USC 2763</ref> note.</p></sidenote>subject to the regular notification procedures of the Committees on Appropriations, the authority of section 23(a) of the Arms Export Control Act may be used to provide financing to Israel, Egypt and NATO and major non-NATO allies for the procurement by leasing (including leasing with an option to purchase) of defense articles from United States commercial suppliers, not including Major Defense Equipment (other than helicopters and other types of aircraft having possible civilian application), if the President determines that there are compelling foreign policy or national security reasons for those defense articles being provided by commercial lease rather than by government-to-government sale under such Act.</content></section> <section><heading>COMPETITIVE INSURANCE</heading> <num value="529"><inline class="smallCaps">Sec.</inline> 529. </num><content>All Agency for International Development contracts and solicitations, and subcontracts entered into under such contracts, shall include a clause requiring that United States insurance <page identifier="/us/stat/111/2414">111 STAT. 2414</page>companies have a fair opportunity to bid for insurance when such insurance is necessary or appropriate.</content></section> <section><heading>STINGERS IN THE PERSIAN GULF REGION</heading> <num value="530"><inline class="smallCaps">Sec.</inline> 530. </num><content>Except as provided in section 581 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1990, the United States may not sell or otherwise make available any Stingers to any country bordering the Persian Gulf under the Arms Export Control Act or chapter 2 of part II of the Foreign Assistance Act of 1961.</content></section> <section><heading>DEBT-FOR-DEVELOPMENT</heading> <num value="531"><inline class="smallCaps">Sec.</inline> 531. </num><content>In order to enhance the continued participation of nongovernmental organizations in economic assistance activities under the Foreign Assistance Act of 1961, including endowments, debt-for-development and debt-for-nature exchanges, a nongovernmental organization which is a grantee or contractor of the Agency for International Development may place in interest bearing accounts funds made available under this Act or prior Acts or local currencies which accrue to that organization as a result of economic assistance provided under title II of this Act and any interest earned on such investment shall be used for the purpose for which the assistance was provided to that organization.</content></section> <section><heading>SEPARATE ACCOUNTS</heading> <num value="532"><inline class="smallCaps">Sec.</inline> 532. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s2359">22 USC 2359</ref> note.</p></sidenote><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Separate Accounts for Local Currencies</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>If assistance is furnished to the government of a foreign country under chapter 1 and 10 of part I or chapter 4 of part II of the Foreign Assistance Act of 1961 under agreements which result in the generation of local currencies of that country, the Administrator of the Agency for International Development shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>require that local currencies be deposited in a separate account established by that government;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><chapeau>enter into an agreement with that government which sets forth—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>the amount of the local currencies to be generated; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>the terms and conditions under which the currencies so deposited may be utilized, consistent with this section; and</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>establish by agreement with that government the responsibilities of the Agency for International Development and that government to monitor and account for deposits into and disbursements from the separate account.</content></subparagraph></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Uses of Local Currencies</inline>.—</heading><chapeau>As may be agreed upon with the foreign government, local currencies deposited in a separate account pursuant to subsection (a), or an equivalent amount of local currencies, shall be used only—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><chapeau>to carry out chapter 1 or 10 of part I or chapter 4 of part II (as the case may be), for such purposes as—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>project and sector assistance activities; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>debt and deficit financing; or</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>for the administrative requirements of the United States Government.</content></subparagraph></paragraph> <page identifier="/us/stat/111/2415">111 STAT. 2415</page> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Programming Accountability</inline>.—</heading><content>The Agency for International Development shall take all necessary steps to ensure that the equivalent of the local currencies disbursed pursuant to subsection (a)(2)(A) from the separate account established pursuant to subsection (a)(1) are used for the purposes agreed upon pursuant to subsection (a)(2).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="4">(4) </num><heading><inline class="smallCaps">Termination of Assistance Programs</inline>.—</heading><content>Upon termination of assistance to a country under chapter 1 or 10 of part I or chapter 4 of part II (as the case may be), any unencumbered balances of funds which remain in a separate account established pursuant to subsection (a) shall be disposed of for such purposes as may be agreed to by the government of that country and the United States Government.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="4">(5) </num><heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><content>The provisions of this subsection shall supersede the tenth and eleventh provisos contained under the heading “Sub-Saharan Africa, Development Assistance” as included in the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1989 and sections 531(d) and 609 of the Foreign Assistance Act of 1961.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="6">(6) </num><heading><inline class="smallCaps">Reporting Requirement</inline>.—</heading><content>The Administrator of the Agency for International Development shall report on an annual basis as part of the justification documents submitted to the Committees on Appropriations on the use of local currencies for the administrative requirements of the United States Government as authorized in subsection (a)(2)(B), and such report shall include the amount of local currency (and United States dollar equivalent) used and/or to be used for such purpose in each applicable country.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Separate Accounts for Cash Transfers</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>If assistance is made available to the government of a foreign country, under chapter 1 or 10 of part I or chapter 4 of part II of the Foreign Assistance Act of 1961, as cash transfer assistance or as nonproject sector assistance, that country shall be required to maintain such funds in a separate account and not commingle them with any other funds.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Applicability of Other Provisions of Law</inline>.—</heading><content>Such funds may be obligated and expended notwithstanding provisions of law which are inconsistent with the nature of this assistance including provisions which are referenced in the Joint Explanatory Statement of the Committee of Conference accompanying House Joint Resolution 648 (H. Report No. 98–1159).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Notification.</inline>—</heading><content>At least 15 days prior to obligating any <sidenote><p class="indent0 firstIndent0 fontsize8">President.</p></sidenote>such cash transfer or nonproject sector assistance, the President shall submit a notification through the regular notification procedures of the Committees on Appropriations, which shall include a detailed description of how the funds proposed to be made available will be used, with a discussion of the United States interests that will be served by the assistance (including, as appropriate, a description of the economic policy reforms that will be promoted by such assistance).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="4">(4) </num><heading><inline class="smallCaps">Exemption</inline>.—</heading><content>Nonproject sector assistance funds may be exempt from the requirements of subsection (b)(1) only through the notification procedures of the Committees on Appropriations.</content></paragraph></subsection></section> <section><heading>COMPENSATION FOR UNITED STATES EXECUTIVE DIRECTORS TO INTERNATIONAL FINANCIAL INSTITUTIONS</heading> <num value="533"><inline class="smallCaps">Sec.</inline> 533. </num><subsection class="inline"><num value="a">(a) </num><content>No funds appropriated by this Act may be made as payment to any international financial institution while the <page identifier="/us/stat/111/2416">111 STAT. 2416</page>United States Executive Director to such institution is compensated by the institution at a rate which, together with whatever compensation such Director receives from the United States, is in excess of the rate provided for an individual occupying a position at level IV of the Executive Schedule under section 5315 of title 5, United States Code, or while any alternate United States Director to such institution is compensated by the institution at a rate in excess of the rate provided for an individual occupying a position at level V of the Executive Schedule under section 5316 of title 5, United States Code.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>For purposes of this section, “international financial institutions” are: the International Bank for Reconstruction and Development, the Inter-American Development Bank, the Asian Development Bank, the Asian Development Fund, the African Development Bank, the African Development Fund, the International Monetary Fund, the North American Development Bank, and the European Bank for Reconstruction and Development.</content></subsection></section> <section><heading>COMPLIANCE WITH UNITED NATIONS SANCTIONS AGAINST IRAQ</heading> <num value="534"><inline class="smallCaps">Sec.</inline> 534. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t50/s1701">50 USC 1701</ref> note.</p></sidenote><chapeau class="inline">None of the funds appropriated or otherwise made available pursuant to this Act to carry out the Foreign Assistance Act of 1961 (including title IV of chapter 2 of part I, relating to the Overseas Private Investment Corporation) or the Arms Export Control Act may be used to provide assistance to any country that is not in compliance with the United Nations Security Council sanctions against Iraq unless the President determines and so certifies to the Congress that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>such assistance is in the national interest of the United States;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>such assistance will directly benefit the needy people in that country; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>the assistance to be provided will be humanitarian assistance for foreign nationals who have fled Iraq and Kuwait.</content></paragraph></section> <section><heading>COMPETITIVE PRICING FOR SALES OF DEFENSE ARTICLES</heading> <num value="535"><inline class="smallCaps">Sec.</inline> 535. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s2762">22 USC 2762</ref> note.</p></sidenote><content class="inline">Direct costs associated with meeting a foreign customer’s additional or unique requirements will continue to be allowable under contracts under section 22(d) of the Arms Export Control Act. Loadings applicable to such direct costs shall be permitted at the same rates applicable to procurement of like items purchased by the Department of Defense for its own use.</content></section> <section><heading>EXTENSION OF AUTHORITY TO OBLIGATE FUNDS TO CLOSE THE SPECIAL DEFENSE ACQUISITION FUND</heading> <num value="536"><inline class="smallCaps">Sec.</inline> 536. </num><content>Title III of Public Law 103–306 is amended under the <sidenote><p class="indent0 firstIndent0 fontsize8">108 Stat. 1622.</p></sidenote>heading “Special Defense Acquisition Fund” by striking “<quotedText>1998</quotedText>” and inserting “<quotedText>2000</quotedText>”.</content></section> <section><heading>AUTHORITIES FOR THE PEACE CORPS, THE INTER-AMERICAN FOUNDATION AND THE AFRICAN DEVELOPMENT FOUNDATION</heading> <num value="537"><inline class="smallCaps">Sec.</inline> 537. </num><content>Unless expressly provided to the contrary, provisions of this or any other Act, including provisions contained in prior Acts authorizing or making appropriations for foreign operations, export financing, and related programs, shall not be construed to prohibit activities authorized by or conducted under the Peace <page identifier="/us/stat/111/2417">111 STAT. 2417</page>Corps Act, the Inter-American Foundation Act, or the African Development Foundation Act. The appropriate agency shall promptly Reports report to the Committees on Appropriations whenever it is conducting activities or is proposing to conduct activities in a country for which assistance is prohibited.</content></section> <section><heading>IMPACT ON JOBS IN THE UNITED STATES</heading> <num value="538"><inline class="smallCaps">Sec.</inline> 538. </num><chapeau>None of the funds appropriated by this Act may be obligated or expended to provide—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>any financial incentive to a business enterprise currently located in the United States for the purpose of inducing such an enterprise to relocate outside the United States if such incentive or inducement is likely to reduce the number of employees of such business enterprise in the United States because United States production is being replaced by such enterprise outside the United States;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>assistance for the purpose of establishing or developing in a foreign country any export processing zone or designated area in which the tax, tariff, labor, environment, and safety laws of that country do not apply, in part or in whole, to activities carried out within that zone or area, unless the President determines and certifies that such assistance is not likely to cause a loss of jobs within the United States; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>assistance for any project or activity that contributes to the violation of internationally recognized workers rights, as defined in section 502(a)(4) of the Trade Act of 1974, of workers in the recipient country, including any designated zone or area in that country: <proviso><i>Provided,</i> That in recognition that the application of this subsection should be commensurate with the level of development of the recipient country and sector, the provisions of this subsection shall not preclude assistance for the informal sector in such country, micro and small-scale enterprise, and smallholder agriculture.</proviso></content></paragraph></section> <section><heading>SPECIAL AUTHORITIES</heading> <num value="539"><inline class="smallCaps">Sec.</inline> 539. </num><subsection class="inline"><num value="a">(a) </num><content>Funds appropriated in title II of this Act that are made available for Afghanistan, Lebanon, and for victims of war, displaced children, displaced Burmese, humanitarian assistance for Romania, and humanitarian assistance for the peoples of Bosnia and Herzegovina, Croatia, and Kosova, may be made available notwithstanding any other provision of law.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Funds appropriated by this Act to carry out the provisions of sections 103 through 106 of the Foreign Assistance Act of 1961 may be used, notwithstanding any other provision of law, for the purpose of supporting tropical forestry and energy programs aimed at reducing emissions of greenhouse gases, and for the purpose of supporting biodiversity conservation activities: <proviso><i>Provided,</i> That such assistance shall be subject to sections 116, 502B, and 620A of the Foreign Assistance Act of 1961.</proviso></content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>The Agency for International Development may employ personal services contractors, notwithstanding any other provision of law, for the purpose of administering programs for the West Bank and Gaza.</content></subsection> <subsection class="indent0 fontsize10"><num value="d">(d)</num><paragraph class="inline"><num value="1">(1) </num><heading><inline class="smallCaps">Waiver.</inline>—</heading><content>The President may waive the provisions of section 1003 of Public Law 100–204 if the President determines <page identifier="/us/stat/111/2418">111 STAT. 2418</page>and certifies in writing to the Speaker of the House of Representatives and the President pro tempore of the Senate that it is important to the national security interests of the United States.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Period of Application of Waiver</inline>.—</heading><content>Any waiver pursuant to paragraph (1) shall be effective for no more than a period of six months at a time and shall not apply beyond twelve months after enactment of this Act.</content></paragraph></subsection></section> <section><heading>POLICY ON TERMINATING THE ARAB LEAGUE BOYCOTT OF ISRAEL</heading> <num value="540"><inline class="smallCaps">Sec.</inline> 540. </num><chapeau>It is the sense of the Congress that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the Arab League countries should immediately and publicly renounce the primary boycott of Israel and the secondary and tertiary boycott of American firms that have commercial ties with Israel;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the decision by the Arab League in 1997 to reinstate the boycott against Israel was deeply troubling and disappointing;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>the Arab League should immediately rescind its decision on the boycott and its members should develop normal relations with their neighbor Israel; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><chapeau>the President should—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>take more concrete steps to encourage vigorously Arab League countries to renounce publicly the primary boycotts of Israel and the secondary and tertiary boycotts of American firms that have commercial relations with Israel as a confidence-building measure;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>take into consideration the participation of any recipient country in the primary boycott of Israel and the secondary and tertiary boycotts of American firms that have commercial relations with Israel when determining whether to sell weapons to said country;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>report to Congress on the specific steps being taken by the President to bring about a public renunciation of the Arab primary boycott of Israel and the secondary and tertiary boycotts of American firms that have commercial relations with Israel and to expand the process of normalizing ties between Arab League countries and Israel; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>encourage the allies and trading partners of the United States to enact laws prohibiting businesses from complying with the boycott and penalizing businesses that do comply.</content></subparagraph></paragraph></section> <section><heading>ANTI-NARCOTICS ACTIVITIES</heading> <num value="541"><inline class="smallCaps">Sec.</inline> 541. </num><subsection class="inline"><num value="a">(a) </num><content>Of the funds appropriated or otherwise made available by this Act for “Economic Support Fund”, assistance may be provided to strengthen the administration of justice in countries in Latin America and the Caribbean and in other regions consistent with the provisions of section 534(b) of the Foreign Assistance Act of 1961, except that programs to enhance protection of participants in judicial cases may be conducted notwithstanding section 660 of that Act.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Funds made available pursuant to this section may be made available notwithstanding section 534(c) and the second and third sentences of section 534(e) of the Foreign Assistance Act of 1961. Funds made available pursuant to subsection (a) for Bolivia, Colombia, and Peru may be made available notwithstanding section <page identifier="/us/stat/111/2419">111 STAT. 2419</page> 534(c) and the second sentence of section 534(e) of the Foreign Assistance Act of 1961.</content></subsection></section> <section><heading>ELIGIBILITY FOR ASSISTANCE</heading> <num value="542"><inline class="smallCaps">Sec.</inline> 542. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Assistance Through Nongovernmental Organizations</inline>.—</heading><content>Restrictions contained in this or any other Act with respect to assistance for a country shall not be construed to restrict assistance in support of programs of nongovernmental organizations from funds appropriated by this Act to carry out the provisions of chapters 1, 10, and 11 of part I, and chapter 4 of part II, of the Foreign Assistance Act of 1961: <proviso><i>Provided,</i> <sidenote><p class="indent0 firstIndent0 fontsize8">President.</p></sidenote>That the President shall take into consideration, in any case in which a restriction on assistance would be applicable but for this subsection, whether assistance in support of programs of nongovernmental organizations is in the national interest of the United States</proviso>: <proviso><i>Provided further</i>, That before using the authority of this subsection <sidenote><p class="indent0 firstIndent0 fontsize8">President.</p> <p class="indent0 firstIndent0 fontsize8">Notification.</p></sidenote> to furnish assistance in support of programs of nongovernmental organizations, the President shall notify the Committees on Appropriations under the regular notification procedures of those committees, including a description of the program to be assisted, the assistance to be provided, and the reasons for furnishing such assistance</proviso>: <proviso><i>Provided further</i>, That nothing in this subsection shall be construed to alter any existing statutory prohibitions against abortion or involuntary sterilizations contained in this or any other Act</proviso>.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Public Law</inline> 480.—</heading><content>During fiscal year 1998, restrictions contained in this or any other Act with respect to assistance for a country shall not be construed to restrict assistance under the Agricultural Trade Development and Assistance Act of 1954: <proviso><i>Provided,</i> That none of the funds appropriated to carry out title I of such Act and made available pursuant to this subsection may be obligated or expended except as provided through the regular notification procedures of the Committees on Appropriations</proviso>.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Exception.</inline>—</heading><chapeau>This section shall not apply—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>with respect to section 620A of the Foreign Assistance Act or any comparable provision of law prohibiting assistance to countries that support international terrorism; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>with respect to section 116 of the Foreign Assistance Act of 1961 or any comparable provision of law prohibiting assistance to countries that violate internationally recognized human rights.</content></paragraph></subsection></section> <section><heading>EARMARKS</heading> <num value="543"><inline class="smallCaps">Sec.</inline> 543. </num><subsection class="inline"><num value="a">(a) </num><content>Funds appropriated by this Act which are earmarked may be reprogrammed for other programs within the same account notwithstanding the earmark if compliance with the earmark is made impossible by operation of any provision of this or any other Act or, with respect to a country with which the United States has an agreement providing the United States with base rights or base access in that country, if the President determines that the recipient for which funds are earmarked has significantly reduced its military or economic cooperation with the United States since enactment of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1991; however, before <sidenote><p class="indent0 firstIndent0 fontsize8">President.</p></sidenote>exercising the authority of this subsection with regard to a base rights or base access country which has significantly reduced its <page identifier="/us/stat/111/2420">111 STAT. 2420</page>military or economic cooperation with the United States, the President shall consult with, and shall provide a written policy justification to the Committees on Appropriations: <proviso><i>Provided,</i> That any such reprogramming shall be subject to the regular notification procedures of the Committees on Appropriations</proviso>: <proviso><i>Provided further</i>, That assistance that is reprogrammed pursuant to this subsection shall be made available under the same terms and conditions as originally provided</proviso>.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>In addition to the authority contained in subsection (a), the original period of availability of funds appropriated by this Act and administered by the Agency for International Development that are earmarked for particular programs or activities by this or any other Act shall be extended for an additional fiscal year if the Administrator of such agency determines and reports promptly to the Committees on Appropriations that the termination of assistance to a country or a significant change in circumstances makes it unlikely that such earmarked funds can be obligated during the original period of availability: <proviso><i>Provided</i>, That such earmarked funds that are continued available for an additional fiscal year shall be obligated only for the purpose of such earmark</proviso>.</content></subsection></section> <section><heading>CEILINGS AND EARMARKS</heading> <num value="544"><inline class="smallCaps">Sec.</inline> 544. </num><content>Ceilings and earmarks contained in this Act shall not be applicable to hinds or authorities appropriated or otherwise made available by any subsequent Act unless such Act specifically so directs.</content></section> <section><heading>PROHIBITION ON PUBLICITY OR PROPAGANDA</heading> <num value="545"><inline class="smallCaps">Sec.</inline> 545. </num><content>No part of any appropriation contained in this Act shall be used for publicity or propaganda purposes within the United States not authorized before the date of enactment of this Act by the Congress: <proviso><i>Provided,</i> That not to exceed $500,000 may be made available to carry out the provisions of section 316 of Public Law 96–533</proviso>.</content></section> <section><heading>PURCHASE OF AMERICAN-MADE EQUIPMENT AND PRODUCTS</heading> <num value="546"><inline class="smallCaps">Sec.</inline> 546. </num><subsection class="inline"><num value="a">(a) </num><content>To the maximum extent possible, assistance provided under this Act should make full use of American resources, including commodities, products, and services.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>It is the Sense of the Congress that, to the greatest extent practicable, all equipment and products purchased with funds made available in this Act should be American-made.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>In providing financial assistance to, or entering into any contract with, any entity using funds made available in this Act, the head of each Federal agency, to the greatest extent practicable, shall provide to such entity a notice describing the statement made in subsection (b) by the Congress.</content></subsection></section> <section><heading>PROHIBITION OF PAYMENTS TO UNITED NATIONS MEMBERS</heading> <num value="547"><inline class="smallCaps">Sec.</inline> 547. </num><content>None of the funds appropriated or made available pursuant to this Act for carrying out the Foreign Assistance Act of 1961, may be used to pay in whole or in part any assessments, arrearages, or dues of any member of the United Nations.</content></section> <page identifier="/us/stat/111/2421">111 STAT. 2421</page> <section><heading>CONSULTING SERVICES</heading> <num value="548"><inline class="smallCaps">Sec.</inline> 548. </num><content>The expenditure of any appropriation under this <sidenote><p class="indent0 firstIndent0 fontsize8">Contracts.</p> <p class="indent0 firstIndent0 fontsize8">Public information.</p> </sidenote>Act for any consulting service through procurement contract, pursuant to section 3109 of title 5, United States Code, shall be limited to those contracts where such expenditures are a matter of public record and available for public inspection, except where otherwise provided under existing law, or under existing Executive order pursuant to existing law.</content></section> <section><heading>PRIVATE VOLUNTARY ORGANIZATIONS—DOCUMENTATION</heading> <num value="549"><inline class="smallCaps">Sec.</inline> 549. </num><content>None of the funds appropriated or made available pursuant to this Act shall be available to a private voluntary organization which fails to provide upon timely request any document, file, or record necessary to the auditing requirements of the Agency for International Development.</content></section> <section><heading>PROHIBITION ON ASSISTANCE TO FOREIGN GOVERNMENTS THAT EXPORT LETHAL MILITARY EQUIPMENT TO COUNTRIES SUPPORTING INTERNATIONAL TERRORISM</heading> <num value="550"><inline class="smallCaps">Sec.</inline> 550. </num><subsection class="inline"><num value="a">(a) </num><content>None of the funds appropriated or otherwise made available by this Act may be available to any foreign government which provides lethal military equipment to a country the government of which the Secretary of State has determined is a terrorist government for purposes of section 40(d) of the Arms Export Control Act. The prohibition under this section with respect <sidenote><p class="indent0 firstIndent0 fontsize8">Termination date.</p> <p class="indent0 firstIndent0 fontsize8">Applicability.</p> </sidenote>to a foreign government shall terminate 12 months after that government ceases to provide such military equipment. This section applies with respect to lethal military equipment provided under a contract entered into after October 1, 1997.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Assistance restricted by subsection (a) or any other similar provision of law, may be furnished if the President determines that furnishing such assistance is important to the national interests of the United States.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Whenever the waiver of subsection (b) is exercised, the <sidenote><p class="indent0 firstIndent0 fontsize8">President.</p> <p class="indent0 firstIndent0 fontsize8">Reports.</p> </sidenote>President shall submit to the appropriate congressional committees a report with respect to the furnishing of such assistance. Any such report shall include a detailed explanation of the assistance estimated to be provided, including the estimated dollar amount of such assistance, and an explanation of how the assistance furthers United States national interests.</content></subsection></section> <section><heading>WITHHOLDING OF ASSISTANCE FOR PARKING FINES OWED BY FOREIGN COUNTRIES</heading> <num value="551"><inline class="smallCaps">Sec.</inline> 551. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>Of the funds made available for a foreign country under part I of the Foreign Assistance Act of 1961, an amount equivalent to 110 percent of the total unpaid fully adjudicated parking fines and penalties owed to the District of Columbia by such country as of the date of enactment of this Act shall be withheld from obligation for such country until the Secretary of State certifies and reports in writing to the appropriate congressional committees that such fines and penalties are hilly paid to the government of the District of Columbia.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Definition.</inline>—</heading><content>For purposes of this section, the term “appropriate congressional committees” means the Committee on Foreign Relations and the Committee on Appropriations of the Senate and <page identifier="/us/stat/111/2422">111 STAT. 2422</page>the Committee on International Relations and the Committee on Appropriations of the House of Representatives.</content></subsection></section> <section><heading>LIMITATION ON ASSISTANCE FOR THE PLO FOR THE WEST BANK AND GAZA</heading> <num value="552"><inline class="smallCaps">Sec.</inline> 552. </num><content>None of the funds appropriated by this Act may be obligated for assistance for the Palestine Liberation Organization for the West Bank and Gaza unless the President has exercised the authority under section 604(a) of the Middle East Peace Facilitation Act of 1995 (title VI of Public Law 104–107) or any other legislation to suspend or make inapplicable section 307 of the Foreign Assistance Act of 1961 and that suspension is still in effect: <proviso><i>Provided,</i> That if the President fails to make the certification under section 604(b)(2) of the Middle East Peace Facilitation Act of 1995 or to suspend the prohibition under other legislation, funds appropriated by this Act may not be obligated for assistance for the Palestine Liberation Organization for the West Bank and Gaza</proviso>.</content></section> <section><heading>WAR CRIMES TRIBUNALS DRAWDOWN</heading> <num value="553"><inline class="smallCaps">Sec.</inline> 553. </num><content>If the President determines that doing so will contribute to a just resolution of charges regarding genocide or other violations of international humanitarian law, the President may direct a drawdown pursuant to section 552(c) of the Foreign Assistance Act of 1961, as amended, of up to $25,000,000 of commodities and services for the United Nations War Crimes Tribunal established with regard to the former Yugoslavia by the United Nations Security Council or such other tribunals or commissions as the Council may establish to deal with such violations, without regard to the ceiling limitation contained in paragraph (2) thereof: <proviso><i>Provided,</i> That the determination required under this section shall be in lieu of any determinations otherwise required under section <sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p> <p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s2656">22 USC 2656</ref> note.</p> </sidenote>552(c)</proviso>: <i>Provided further</i>, That 60 days after the date of enactment of this Act, and every 180 days thereafter, the Secretary of State shall submit a report to the Committees on Appropriations describing the steps the United States Government is taking to collect information regarding allegations of genocide or other violations of international law in the former Yugoslavia and to furnish that information to the United Nations War Crimes Tribunal for the former Yugoslavia.</content></section> <section><heading>LANDMINES</heading> <num value="554"><inline class="smallCaps">Sec.</inline> 554. </num><content>Notwithstanding any other provision of law, demining equipment available to the Agency for International Development and the Department of State and used in support of the clearance of landmines and unexploded ordnance for humanitarian purposes may be disposed of on a grant basis in foreign countries, subject to such terms and conditions as the President may prescribe: <proviso><i>Provided,</i> <sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote>That not later than 90 days after the enactment of this Act, the Secretary of Defense, in consultation with the Secretary of State, shall submit a report to the Committees on Appropriations describing potential alternative technologies or tactics and a plan for the development of such alternatives to protect anti-tank mines from tampering in a manner consistent with the “Convention on the Prohibition, Use, Stockpiling, Production and Transfer of Antipersonnel Mines and on Their Destruction”</proviso>.</content></section> <page identifier="/us/stat/111/2423">111 STAT. 2423</page> <section><heading>RESTRICTIONS CONCERNING THE PALESTINIAN AUTHORITY</heading> <num value="555"><inline class="smallCaps">Sec.</inline> 555. </num><content>None of the funds appropriated by this Act may be obligated or expended to create in any part of Jerusalem a new office of any department or agency of the United States Government for the purpose of conducting official United States Government business with the Palestinian Authority over Gaza and Jericho or any successor Palestinian governing entity provided for in the Israel-PLO Declaration of Principles: Provided, That this restriction shall not apply to the acquisition of additional space for the existing Consulate General in Jerusalem: <proviso><i>Provided further</i>, That meetings between officers and employees of the United States and officials of the Palestinian Authority, or any successor Palestinian governing entity provided for in the Israel-PLO Declaration of Principles, for the purpose of conducting official United States Government business with such authority should continue to take place in locations other than Jerusalem. As has been true in the past, officers and employees of the United States Government may continue to meet in Jerusalem on other subjects with Palestinians (including those who now occupy positions in the Palestinian Authority), have social contacts, and have incidental discussions</proviso>.</content></section> <section><heading>PROHIBITION OF PAYMENT OF CERTAIN EXPENSES</heading> <num value="556"><inline class="smallCaps">Sec.</inline> 556. </num><chapeau>None of the funds appropriated or otherwise made available by this Act under the heading “International Military Education and Training” or “Foreign Military Financing Program” for Informational Program activities may be obligated or expended to pay for—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>alcoholic beverages;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>food (other than food provided at a military installation) not provided in conjunction with Informational Program trips where students do not stay at a military installation; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>entertainment expenses for activities that are substantially of a recreational character, including entrance fees at sporting events and amusement parks.</content></paragraph></section> <section><heading>EQUITABLE ALLOCATION OF FUNDS</heading> <num value="557"><inline class="smallCaps">Sec</inline>. 557. </num><content>Not more than 18 percent of the funds appropriated by this Act to carry out the provisions of sections 103 through 106 and chapter 4 of part II of the Foreign Assistance Act of 1961, that are made available for Latin America and the Caribbean region may be made available, through bilateral and Latin America and the Caribbean regional programs, to provide assistance for any country in such region.</content></section> <section><heading>SPECIAL DEBT RELIEF FOR THE POOREST</heading> <num value="558"><inline class="smallCaps">Sec.</inline> 558. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Authority To Reduce Debt</inline>.—</heading><chapeau>The President may reduce amounts owed to the United States (or any agency of the United States) by an eligible country as a result of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>guarantees issued under sections 221 and 222 of the Foreign Assistance Act of 1961;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>credits extended or guarantees issued under the Arms Export Control Act; or</content></paragraph> <page identifier="/us/stat/111/2424">111 STAT. 2424</page> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>any obligation or portion of such obligation for a Latin American country, to pay for purchases of United States agricultural commodities guaranteed by the Commodity Credit Corporation under export credit guarantee programs authorized pursuant to section 5(f) of the Commodity Credit Corporation Charter Act of June 29, 1948, as amended, section 4(b) of the Food for Peace Act of 1966, as amended (Public Law 89808), or section 202 of the Agricultural Trade Act of 1978, as amended (Public Law 95–501).</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Limitations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The authority provided by subsection (a) may be exercised only to implement multilateral official debt relief and referendum agreements, commonly referred to as “Paris Club Agreed Minutes”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The authority provided by subsection (a) may be exercised only in such amounts or to such extent as is provided in advance by appropriations Acts.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The authority provided by subsection (a) may be exercised only with respect to countries with heavy debt burdens that are eligible to borrow from the International Development Association, but not from the International Bank for Reconstruction and Development, commonly referred to as “IDA-only” countries.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Conditions</inline>.—</heading><chapeau>The authority provided by subsection (a) may be exercised only with respect to a country whose government—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>does not have an excessive level of military expenditures;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>has not repeatedly provided support for acts of international terrorism;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>is not failing to cooperate on international narcotics control matters;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>(including its military or other security forces) does not engage in a consistent pattern of gross violations of internationally recognized human rights; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>is not ineligible for assistance because of the application of section 527 of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Availability of Funds</inline>.—</heading><content>The authority provided by subsection (a) may be used only with regard to funds appropriated by this Act under the heading “Debt restructuring”.</content></subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><heading><inline class="smallCaps">Certain Prohibitions Inapplicable</inline>.—</heading><content>A reduction of debt pursuant to subsection (a) shall not be considered assistance for purposes of any provision of law limiting assistance to a country. The authority provided by subsection (a) may be exercised notwithstanding section 620(r) of the Foreign Assistance Act of 1961.</content></subsection></section> <section><heading>AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES</heading> <num value="559"><inline class="smallCaps">Sec</inline>. 559. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Loans Eligible for Sale, Reduction, or Cancellation.</inline>— </heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Authority to sell, reduce, or cancel certain loans</inline>.—</heading><chapeau>Notwithstanding any other provision of law, the President may, in accordance with this section, sell to any eligible purchaser any concessional loan or portion thereof made before January 1, 1995, pursuant to the Foreign Assistance Act of 1961, to the government of any eligible country as defined in section 702(6) of that Act or on receipt of payment from <page identifier="/us/stat/111/2425">111 STAT. 2425</page>an eligible purchaser, reduce or cancel such loan or portion thereof, only for the purpose of facilitating—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>debt-for-equity swaps, debt-for-development swaps, or debt-for-nature swaps; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>a debt buyback by an eligible country of its own qualified debt, only if the eligible country uses an additional amount of the local currency of the eligible country, equal to not less than 40 percent of the price paid for such debt by such eligible country, or the difference between the price paid for such debt and the face value of such debt, to support activities that link conservation and sustainable use of natural resources with local community development, and child survival and other child development, in a manner consistent with sections 707 through 710 of the Foreign Assistance Act of 1961, if the sale, reduction, or cancellation would not contravene any term or condition of any prior agreement relating to such loan.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Terms and conditions</inline>.—</heading><content>Notwithstanding any other <sidenote><p class="indent0 firstIndent0 fontsize8">President.</p></sidenote>provision of law, the President shall, in accordance with this section, establish the terms and conditions under which loans may be sold, reduced, or canceled pursuant to this section.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Administration</inline>.—</heading><content>The Facility, as defined in section 702(8) of the Foreign Assistance Act of 1961, shall notify the administrator of the agency primarily responsible for administering part I of the Foreign Assistance Act of 1961 of purchasers that the President has determined to be eligible, and shall direct such agency to carry out the sale, reduction, or cancellation of a loan pursuant to this section. Such agency shall make an adjustment in its accounts to reflect the sale, reduction, or cancellation.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><heading><inline class="smallCaps">Limitation</inline>.—</heading><content>The authorities of this subsection shall be available only to the extent that appropriations for the cost of the modification, as defined in section 502 of the Congressional Budget Act of 1974, are made in advance.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Deposit of Proceeds</inline>.—</heading><content>The proceeds from the sale, reduction, or cancellation of any loan sold, reduced, or canceled pursuant to this section shall be deposited in the United States Government account or accounts established for the repayment of such loan.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Eligible Purchasers</inline>.—</heading><content>A loan may be sold pursuant to subsection (a)(1)(A) only to a purchaser who presents plans satisfactory to the President for using the loan for the purpose of engaging in debt-for-equity swaps, debt-for-development swaps, or debt-for-nature swaps.</content></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Debtor Consultations</inline>.—</heading><content>Before the sale to any eligible purchaser, or any reduction or cancellation pursuant to this section, of any loan made to an eligible country, the President should consult with the country concerning the amount of loans to be sold, reduced, or canceled and their uses for debt-for-equity swaps, debt-for-development swaps, or debt-for-nature swaps.</content></subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><heading><inline class="smallCaps">Availability of Funds</inline>.—</heading><content>The authority provided by subsection (a) may be used only with regard to funds appropriated by this Act under the heading “Debt restructuring”.</content></subsection></section> <section><heading>INTERNATIONAL FINANCIAL INSTITUTIONS</heading> <num value="560"><inline class="smallCaps">Sec.</inline> 560. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Authorizations</inline>.—</heading><content>The Secretary of the Treasury <sidenote><ref href="/us/usc/t22/s284s">22 USC 284s</ref> note, <ref href="/us/usc/t22/s285c">285c</ref> note, <ref href="/us/usc/t22/s290l-4">290<i>l</i>–4</ref> note.</sidenote>may, to fulfill commitments of the United States: (1) effect the United States participation in the first general capital increase <page identifier="/us/stat/111/2426">111 STAT. 2426</page>of the European Bank for Reconstruction and Development, subscribe to and make payment for 100,000 additional shares of the capital stock of the Bank on behalf of the United States; and (2) contribute on behalf of the United States to the eleventh replenishment of the resources of the International Development Association, to the sixth replenishment of the resources of the Asian Development Fund, a special fund of the Asian Development Bank. The following amounts are authorized to be appropriated without fiscal year limitation for payment by the Secretary of the Treasury: (1) $285,772,500 for paid-in capital, and $984,327,500 for callable capital of the European Bank for Reconstruction and Development; (2) $1,600,000,000 for the International Development Association; (3) $400,000,000 for the Asian Development Fund; and (4) $76,832,001 for paid-in capital, and $4,511,156,729 for callable capital of the Inter-American Development Bank in connection with the eighth general increase in the resources of that Bank. Each such subscription or contribution shall be subject to obtaining the necessary appropriations.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Consideration of Environmental Impact of International Finance Corporation Loans</inline>.—</heading><chapeau>Section 1307 of the Inter- 22 USC 262m-7. national Financial Institutions Act (Public Law 95–118) is amended as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subsection (a)(1)(A) strike “<quotedText>borrowing country</quotedText>” and insert in lieu thereof “borrower”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in subsection (a)(2)(A) strike “<quotedText>country</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>at the end of section 1307, add a new subsection as follows: <quotedContent><subsection class="indent0 fontsize10"><num value="g">“(g) </num><content>For purposes of this section, the term ‘multilateral development bank’ means any of the institutions named in section 1303(b) of this Act, and the International Finance Corporation.”.</content></subsection></quotedContent></content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><chapeau>The Secretary of the Treasury shall instruct the United States Executive Directors of the International Bank for Reconstruction and Development and the International Development Association to use the voice and vote of the United States to strongly encourage their respective institutions to—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>provide timely public information on procurement opportunities available to United States suppliers, with a special emphasis on small business; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>systematically consult with local communities on the potential impact of loans as part of the normal lending process, and expand the participation of affected peoples and nongovernmental organizations in decisions on the selection, design and implementation of policies and projects.</content></paragraph></subsection></section> <section><heading>SANCTIONS AGAINST COUNTRIES HARBORING WAR CRIMINALS</heading> <num value="561"><inline class="smallCaps">Sec.</inline> 561. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Bilateral Assistance</inline>.—</heading><content>The President is authorized to withhold funds appropriated by this Act under the Foreign Assistance Act of 1961 or the Arms Export Control Act for any country described in subsection (c).</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Multilateral Assistance</inline>.—</heading><content>The Secretary of the Treasury should instruct the United States executive directors of the international financial institutions to work in opposition to, and vote against, any extension by such institutions of financing or financial or technical assistance to any country described in subsection (c).</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Sanctioned Countries</inline>.—</heading><chapeau>A country described in this subsection is a country the government of which knowingly grants <page identifier="/us/stat/111/2427">111 STAT. 2427</page>sanctuary to persons in its territory for the purpose of evading prosecution, where such persons—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>have been indicted by the International Criminal Tribunal for Rwanda, or any other international tribunal with similar standing under international law; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>have been indicted for war crimes or crimes against humanity committed during the period beginning March 23, 1933 and ending on May 8, 1945 under the direction of, or in association with—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the Nazi government of Germany;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>any government in any area occupied by the military forces of the Nazi government of Germany;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>any government which was established with the assistance or cooperation of the Nazi government; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>any government which was an ally of the Nazi government of Germany.</content></subparagraph></paragraph></subsection></section> <section><heading>LIMITATION ON ASSISTANCE FOR HAITI</heading> <num value="562"><inline class="smallCaps">Sec.</inline> 562. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Limitation</inline>.—</heading><chapeau>None of the funds appropriated or otherwise made available by this Act may be provided to the Government of Haiti unless the President reports to Congress that the Government of Haiti—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>is conducting thorough investigations of extrajudicial and political killings;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>is cooperating with United States authorities in the investigations of political and extrajudicial killings;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>has substantially completed privatization of (or placed under long-term private management or concession) at least three major public enterprises; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>has taken action to remove from the Haitian National Police, national palace and residential guard, ministerial guard, and any other public security entity of Haiti those individuals who are credibly alleged to have engaged in or conspired to conceal gross violations of internationally recognized human rights.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Exceptions</inline>.—</heading><content>The limitation in subsection (a) does not apply to the provision of humanitarian, electoral, counter-narcotics, or law enforcement assistance.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Waiver</inline>.—</heading><content>The President may waive the requirements of this section on a semiannual basis if the President determines and certifies to the appropriate committees of Congress that such waiver is in the national interest of the United States.</content></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Parastatals Defined</inline>.—</heading><content>As used in this section, the term “parastatal” means a government-owned enterprise.</content></subsection></section> <section><heading>REQUIREMENT FOR DISCLOSURE OF FOREIGN AID IN REPORT OF SECRETARY OF STATE</heading> <num value="563"><inline class="smallCaps">Sec.</inline> 563. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Foreign Aid Reporting Requirement</inline>.—</heading><content>In addition <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s2414a">22 USC 2414a</ref> note.</p></sidenote> to the voting practices of a foreign country, the report required to be submitted to Congress under section 406(a) of the Foreign Relations Authorization Act, fiscal years 1990 and 1991 (22 U.S.C. 2414a), shall include a side-by-side comparison of individual countries’ overall support for the United States at the United Nations and the amount of United States assistance provided to such country in fiscal year 1997.</content></subsection> <page identifier="/us/stat/111/2428">111 STAT. 2428</page> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">United States Assistance.</inline>—</heading><content>For purposes of this section, the term “United States assistance” has the meaning given the term in section 481(e)(4) of the Foreign Assistance Act of 1961 (22 U.S.C. 2291(e)(4)).</content></subsection></section> <section><heading>RESTRICTIONS ON VOLUNTARY CONTRIBUTIONS TO UNITED NATIONS AGENCIES</heading> <num value="564"><inline class="smallCaps">Sec.</inline> 564. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Prohibition on Voluntary Contributions for the United Nations</inline>.—</heading><content>None of the funds appropriated or otherwise made available by this Act may be made available to pay any voluntary contribution of the United States to the United Nations (including the United Nations Development Program) if the United Nations implements or imposes any taxation on any United States persons.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Certification Required for Disbursement of Funds</inline>.—</heading><content>None of the funds appropriated or otherwise made available under this Act may be made available to pay any voluntary contribution of the United States to the United Nations (including the United Nations Development Program) unless the President certifies to the Congress 15 days in advance of such payment that the United Nations is not engaged in any effort to implement or impose any taxation on United States persons in order to raise revenue for the United Nations or any of its specialized agencies.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>As used in this section the term “United States person” refers to—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>a natural person who is a citizen or national of the United States; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>a corporation, partnership, or other legal entity organized under the United States or any State, territory, possession, or district of the United States.</content></paragraph></subsection></section> <section><heading>ASSISTANCE TO TURKEY</heading> <num value="565"><inline class="smallCaps">Sec.</inline> 565. </num><subsection class="inline"><num value="a">(a) </num><content>Not more than $40,000,000 of the funds appropriated in this Act under the heading “Economic Support Fund” may be made available for Turkey.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Of the funds made available under the heading “Economic Support Fund” for Turkey, not less than 50 percent of these funds shall be made available for the purpose of supporting private nongovernmental organizations engaged in strengthening democratic institutions in Turkey, providing economic assistance for individuals and communities affected by civil unrest, and supporting and promoting peaceful solutions and economic development which will contribute to the settlement of regional problems in Turkey.</content></subsection></section> <section><heading>LIMITATION ON ASSISTANCE TO THE PALESTINIAN AUTHORITY</heading> <num value="566"><inline class="smallCaps">Sec.</inline> 566. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Prohibition of Funds</inline>.—</heading><content>None of the funds appropriated by this Act to carry out the provisions of chapter 4 of part II of the Foreign Assistance Act of 1961 may be obligated or expended with respect to providing hinds to the Palestinian Authority.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Waiver</inline>.—</heading><content>The prohibition included in subsection (a) shall not apply if the President certifies in writing to the Speaker of the House of Representatives and the President pro tempore of the Senate that waiving such prohibition is important to the national security interests of the United States.</content></subsection> <page identifier="/us/stat/111/2429">111 STAT. 2429</page> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Period of Application of Waiver</inline>.—</heading><content>Any waiver pursuant to subsection (b) shall be effective for no more than a period of six months at a time and shall not apply beyond twelve months after enactment of this Act.</content></subsection></section> <section><heading>LIMITATION ON ASSISTANCE TO THE GOVERNMENT OF CROATIA</heading> <num value="567"><inline class="smallCaps">Sec.</inline> 567. </num><content>None of the funds appropriated or otherwise made available by title II of this Act may be made available to the Government of Croatia to relocate the remains of Croatian Ustashe soldiers, at the site of the World War II concentration camp at Jasenovac, Croatia.</content></section> <section><heading>BURMA LABOR REPORT</heading> <num value="568"><inline class="smallCaps">Sec.</inline> 568. </num><content>Not later than 120 days after enactment of this Act, the Secretary of Labor in consultation with the Secretary of State shall provide to the Committees on Appropriations a report addressing labor practices in Burma.</content></section> <section><heading>HAITI</heading> <num value="569"><inline class="smallCaps">Sec.</inline> 569. </num><content>The Government of Haiti shall be eligible to purchase defense articles and services under the Arms Export Control Act (22 U.S.C. 2751 et seq.), for the civilian-led Haitian National Police and Coast Guard: <proviso><i>Provided,</i> That the authority provided by this section shall be subject to the regular notification procedures of the Committees on Appropriations</proviso>.</content></section> <section><heading>LIMITATION ON ASSISTANCE TO SECURITY FORCES</heading> <num value="570"><inline class="smallCaps">Sec.</inline> 570. </num><content>None of the funds made available by this Act may be provided to any unit of the security forces of a foreign country if the Secretary of State has credible evidence that such unit has committed gross violations of human rights, unless the Secretary determines and reports to the Committees on Appropriations that the government of such country is taking effective measures to bring the responsible members of the security forces unit to justice: Provided, That nothing in this section shall be construed to withhold funds made available by this Act from any unit of the security forces of a foreign country not credibly alleged to be involved in gross violations of human rights: <proviso><i>Provided further</i>, That in the event that funds are withheld from any unit pursuant to this section, the Secretary of State shall promptly inform the foreign government of the basis for such action and shall, to the maximum extent practicable, assist the foreign government in taking effective measures to bring the responsible members of the security forces to justice</proviso>.</content></section> <section><heading>LIMITATIONS ON TRANSFER OF MILITARY EQUIPMENT TO EAST TIMOR</heading> <num value="571"><inline class="smallCaps">Sec.</inline> 571. </num><content>In any agreement for the sale, transfer, or licensing of any lethal equipment or helicopter for Indonesia entered into by the United States pursuant to the authority of this Act or any other Act, the agreement shall state that the United States expects that the items will not be used in East Timor: <proviso><i>Provided, </i>That nothing in this section shall be construed to limit Indonesia’s inherent right to legitimate national self-defense as recognized under the United Nations Charter and international law</proviso>.</content></section> <page identifier="/us/stat/111/2430">111 STAT. 2430</page> <section><heading>TRANSPARENCY OF BUDGETS</heading> <num value="572"><inline class="smallCaps">Sec.</inline> 572. </num><subsection class="inline"><num value="a">(a) </num><content>Section 576(a)(1) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1997, as contained <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s262k-1">22 USC 262k-i</ref></p></sidenote>in Public Law 104–208, is amended to read as follows: <quotedContent><paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>does not have in place a functioning system for reporting to civilian authorities audits of receipts and expenditures that fund activities of the armed forces and security forces;”.</content></paragraph></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 576(a)(2) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1997, as contained in Public Law 104–208, is amended to read as follows: <quotedContent><paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>has not provided to the institution information about the audit process requested by the institution.”.</content></paragraph></quotedContent></content></subsection></section> <section><heading>RESTRICTIONS ON ASSISTANCE TO COUNTRIES PROVIDING SANCTUARY TO INDICTED WAR CRIMINALS</heading> <num value="573"><inline class="smallCaps">Sec.</inline> 573. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Bilateral Assistance</inline>.—</heading><content>None of the funds made available by this or any prior Act making appropriations for foreign operations, export financing and related programs, may be provided for any country, entity or canton described in subsection (d).</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Multilateral Assistance</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Prohibition</inline>.—</heading><content>The Secretary of the Treasury shall instruct the United States executive directors of the international financial institutions to work in opposition to, and vote against, any extension by such institutions of any financial or technical assistance or grants of any kind to any country or entity described in subsection (d).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Notification</inline>.—</heading><content>Not less than 15 days before any vote in an international financial institution regarding the extension of financial or technical assistance or grants to any country or entity described in subsection (d), the Secretary of the Treasury, in consultation with the Secretary of State, shall provide to the Committee on Appropriations and the Committee on Foreign Relations of the Senate and the Committee on Appropriations and the Committee on Banking and Financial Services of the House of Representatives a written justification for the proposed assistance, including an explanation of the United States position regarding any such vote, as well as a description of the location of the proposed assistance by municipality, its purpose, and its intended beneficiaries.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Definition</inline>.—</heading><content>The term “international financial institution” includes the International Monetary Fund, the International Bank for Reconstruction and Development, the International Development Association, the International Finance Corporation, the Multilateral Investment Guaranty Agency, and the European Bank for Reconstruction and Development.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Exceptions</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Subject to paragraph (2), subsections (a) and (b) shall not apply to the provision of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>humanitarian assistance;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>democratization assistance;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>assistance for cross border physical infrastructure projects involving activities in both a sanctioned country, entity, or canton and a nonsanctioned contiguous country, entity, or canton, if the project is primarily located in and primarily benefits the nonsanctioned country, entity, or canton and if the portion of the project located in the sanctioned country, entity, <page identifier="/us/stat/111/2431">111 STAT. 2431</page>or canton is necessary only to complete the project;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>small-scale assistance projects or activities requested by United States Armed Forces that promote good relations between such forces and the officials and citizens of the areas in the United States SFOR sector of Bosnia;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E) </num><content>implementation of the Brcko Arbitral Decision;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F) </num><content>lending by the international financial institutions to a country or entity to support common monetary and fiscal policies at the national level as contemplated by the Dayton Agreement; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="G">(G) </num><content>direct lending to a non-sanctioned entity, or lending passed on by the national government to a non-sanctioned entity.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Further limitations</inline>.—</heading><chapeau>Notwithstanding paragraph (1)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>no assistance may be made available by this Act, or any prior Act making appropriations for foreign operations, export financing and related programs, in any country, entity, or canton described in subsection (d), for a program, project, or activity in which a publicly indicted war criminal is known to have any financial or material interest; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>no assistance (other than emergency foods or medical assistance or demining assistance) may be made available by this Act, or any prior Act making appropriations for foreign operations, export financing and related programs for any program, project, or activity in a community within any country, entity or canton described in subsection (d) if competent authorities within that community are not complying with the provisions of Article IX and Annex 4, Article II, paragraph 8 of the Dayton Agreement relating to war crimes and the Tribunal.</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Sanctioned Country, Entity, or Canton</inline>.—</heading><content>A sanctioned country, entity, or canton described in this section is one whose competent authorities have failed, as determined by the Secretary of State, to take necessary and significant steps to apprehend and transfer to the Tribunal all persons who have been publicly indicted by the Tribunal.</content></subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><heading><inline class="smallCaps">Waiver</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary of State may waive the application of subsection (a) or subsection (b) with respect to specified bilateral programs or international financial institution projects or programs in a sanctioned country, entity, or canton upon providing a written determination to the Committee on Appropriations and the Committee on Foreign Relations of the Senate and the Committee on Appropriations and the Committee on International Relations of the House of Representatives that such assistance directly supports the implementation of the Dayton Agreement and its Annexes, which include the obligation to apprehend and transfer indicted war criminals to the Tribunal.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Report.—</inline></heading><content>Not later than 15 days after the date of any written determination under paragraph (e)(1), the Secretary of State shall submit a report to the Committee on Appropriations and the Committee on Foreign Relations of the Senate and the Committee on <page identifier="/us/stat/111/2432">111 STAT. 2432</page>Appropriations and the Committee on International Relations of the House of Representatives regarding the status of efforts to secure the voluntary surrender or apprehension and transfer of persons indicted by the Tribunal, in accordance with the Dayton Agreement, and outlining obstacles to achieving this goal.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Assistance programs and projects affected</inline>.—</heading><content>Any waiver made pursuant to this subsection shall be effective only with respect to a specified bilateral program or multilateral assistance project or program identified in the determination of the Secretary of State to Congress.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><heading><inline class="smallCaps">Termination of Sanctions</inline>.—</heading><content>The sanctions imposed pursuant to subsections (a) and (b) with respect to a country or entity shall cease to apply only if the Secretary of State determines and certifies to Congress that the authorities of that country, entity, or canton have apprehended and transferred to the Tribunal all persons who have been publicly indicted by the Tribunal.</content></subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>As used in this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Country.—</inline></heading><content>The term “country” means Bosnia- Herzegovina, Croatia, and Serbia-Montenegro (Federal Republic of Yugoslavia).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Entity.—</inline></heading><content>The term “entity” refers to the Federation of Bosnia and Herzegovina and the Republika Srpska.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Canton</inline>.—</heading><content>The term “canton” means the administrative units in Bosnia and Herzegovina.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><heading><inline class="smallCaps">Dayton agreement.</inline>—</heading><content>The term “Dayton Agreement” means the General Framework Agreement for Peace in Bosnia and Herzegovina, together with annexes relating thereto, done at Dayton, November 10 through 16, 1995.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><heading><inline class="smallCaps">Tribunal</inline>.—</heading><content>The term “Tribunal” means the International Criminal Tribunal for the Former Yugoslavia.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num><heading><inline class="smallCaps">Role of Human Rights Organizations and Government Agencies</inline>.—</heading><content>In carrying out this subsection, the Secretary of State, the Administrator of the Agency for International Development, and the executive directors of the international financial institutions shall consult with representatives of human rights organizations and all government agencies with relevant information to help prevent publicly indicted war criminals from benefitting from any financial or technical assistance or grants provided to any country or entity described in subsection (d).</content></subsection></section> <section><heading>EXTENSION OF CERTAIN ADJUDICATION PROVISIONS</heading> <num value="574"><inline class="smallCaps">Sec.</inline> 574. </num><chapeau>The Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1990 (Public Law 101–167) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>in section 599D (8 U.S.C. 1157 note)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>in subsection (b)(3), by striking “<quotedText>and 1997</quotedText>” and inserting “<quotedText>1997, and 1998</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>in subsection (e), by striking “<quotedText>October 1, 1997</quotedText>” each place it appears and inserting “<quotedText>October 1, 1998</quotedText>”; and</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in section 599E (8 U.S.C. 1255 note) in subsection (b)(2), by striking “<quotedText>September 30, 1997</quotedText>” and inserting “<quotedText>September 30, 1998</quotedText>”.</content></paragraph></section> <page identifier="/us/stat/111/2433">111 STAT. 2433</page> <section><heading>ADDITIONAL REQUIREMENTS RELATING TO STOCKPILING OF DEFENSE ARTICLES FOR FOREIGN COUNTRIES</heading> <num value="575"><inline class="smallCaps">Sec.</inline> 575. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Value of Additions to Stockpiles</inline>.—</heading><content>Section 514(b)(2)(A) of the Foreign Assistance Act of 1961 (22 U.S.C. 2321h(b)(2)(A)) is amended by inserting before the period at the end the following: “and $60,000,000 for fiscal year 1998”.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Requirements Relating to the Republic of Korea and Thailand</inline>.—</heading><content>Section 514(b)(2)(B) of such Act (22 U.S.C. 2321h(b)(2)(B)) is amended by adding at the end the following: “<quotedText>Of the amount specified in subparagraph (A) for fiscal year 1998, not more than $40,000,000 may be made available for stockpiles in the Republic of Korea and not more than $20,000,000 may be made available for stockpiles in Thailand.</quotedText>”.</content></subsection></section> <section><heading>DELIVERY OF DRAWDOWN BY COMMERCIAL TRANSPORTATION SERVICES</heading> <num value="576"><inline class="smallCaps">Sec.</inline> 576. </num><chapeau>Section 506 of the Foreign Assistance Act of 1961 (22 U.S.C. 2318) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subsection (b)(2), by striking the period and inserting the following: “, including providing the Congress with a report detailing all defense articles, defense services, and military education and training delivered to the recipient country or international organization upon delivery of such articles or upon completion of such services or education and training. Such report shall also include whether any savings were realized by utilizing commercial transport services rather than acquiring those services from United States Government transport assets.”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by redesignating subsection (c) as subsection (d); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by inserting after subsection (b) the following: <quotedContent><subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>For the purposes of any provision of law that authorizes the drawdown of defense or other articles or commodities, or defense or other services from an agency of the United States Government, such drawdown may include the supply of commercial transportation and related services that are acquired by contract for the purposes of the drawdown in question if the cost to acquire such commercial transportation and related services is less than the cost to the United States Government of providing such services from existing agency assets.”.</content></subsection></quotedContent></content></paragraph></section> <section><heading>TO PROHIBIT FOREIGN ASSISTANCE TO THE GOVERNMENT OF RUSSIA SHOULD IT IMPLEMENT LAWS WHICH WOULD DISCRIMINATE AGAINST MINORITY RELIGIOUS FAITHS IN THE RUSSIAN FEDERATION</heading> <num value="577"><inline class="smallCaps">Sec.</inline> 577. </num><subsection class="inline"><num value="a">(a) </num><content>None of the funds appropriated under this Act <sidenote><p class="indent0 firstIndent0 fontsize8">President.</p> <p class="indent0 firstIndent0 fontsize8">Certification.</p></sidenote>may be made available for the Government of the Russian Federation unless within 30 days of the date this section becomes effective the President determines and certifies in writing to the Committees on Appropriations and the Committee on Foreign Relations of the Senate and the Committee on International Relations of the House of Representatives that the Government of the Russian Federation has implemented no statute, executive order, regulation or similar government action that would discriminate, or would have as its principal effect discrimination, against religious groups or religious communities in the Russian Federation in violation of accepted <page identifier="/us/stat/111/2434">111 STAT. 2434</page>international agreements on human rights and religious freedoms to which the Russian Federation is a party.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote><content>This section shall become effective 150 days after the enactment of this Act</content></subsection></section> <section><heading>UNITED STATES POLICY REGARDING SUPPORT FOR COUNTRIES OF THE SOUTH CAUCASUS AND CENTRAL ASIA</heading> <num value="578"><inline class="smallCaps">Sec.</inline> 578. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Findings</inline>.—</heading><chapeau>Congress makes the following findings:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The ancient Silk Road, once the economic lifeline of Central Asia and the South Caucasus, traversed much of the territory now within the countries of Armenia, Azerbaijan, Georgia, Kazakstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Economic interdependence spurred mutual cooperation among the peoples along the Silk Road and restoration of the historic relationships and economic ties between those peoples is an important element of ensuring their sovereignty as well as the success of democratic and market reforms.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The development of strong political and economic ties between countries of the South Caucasus and Central Asia and the West will foster stability in the region.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The development of open market economies and open democratic systems in the countries of the South Caucasus and Central Asia will provide positive incentives for international private investment, increased trade, and other forms of commercial interactions with the rest of the world.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>The Caspian Sea Basin, overlapping the territory of the countries of the South Caucasus and Central Asia, contains proven oil and gas reserves that may exceed $4,000,000,000,000 in value.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>The region of the South Caucasus and Central Asia will produce oil and gas in sufficient quantities to reduce the dependence of the United States on energy from the volatile Persian Gulf region.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>United States foreign policy and international assistance should be narrowly targeted to support the economic and political independence of the countries of the South Caucasus and Central Asia.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">General.—</inline></heading><chapeau>The policy of the United States in the countries of the South Caucasus and Central Asia should be—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>to promote sovereignty and independence with democratic government;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>to assist actively in the resolution of regional conflicts;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>to promote friendly relations and economic cooperation;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>to help promote market-oriented principles and practices;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>to assist in the development of infrastructure necessary for communications, transportation, and energy and trade on an East-West axis in order to build strong international relations and commerce between those countries and the stable, democratic, and market-oriented countries of the Euro-Atlantic Community; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>to support United States business interests and investments in the region.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Definition</inline>.—</heading><content>In this section, the term “countries of the South Caucasus and Central Asia” means Armenia, Azerbaijan, <page identifier="/us/stat/111/2435">111 STAT. 2435</page>Georgia, Kazakstan, Kyrgystan, Tajikistan, Turkmenistan, and Uzbekistan.</content></subsection></section> <section><heading>PAKISTAN</heading> <num value="579"><inline class="smallCaps">Sec.</inline> 579. </num><subsection class="inline"><num value="a">(a) </num><heading>OPIC.—</heading><content>Section 239(f) of the Foreign Assistance Act of 1961 (22 U.S.C. 2199(f)) is amended by inserting or Pakistan” after “China”.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Trade and Development</inline>.—</heading><content>It is the sense of Congress that the Director of the Trade and Development Agency should use funds made available to carry out the provisions of section 661 of the Foreign Assistance Act of 1961 (22 U.S.C. 2421) to promote United States exports to Pakistan.</content></subsection></section> <section><heading>REQUIREMENTS FOR THE REPORTING TO CONGRESS OF THE COSTS TO THE FEDERAL GOVERNMENT ASSOCIATED WITH THE PROPOSED AGREEMENT TO REDUCE GREENHOUSE GAS EMISSIONS</heading> <num value="580"><inline class="smallCaps">Sec.</inline> 580. </num><content>The President shall provide to the Congress a detailed <sidenote><p class="indent0 firstIndent0 fontsize8">President.</p></sidenote>account of all Federal agency obligations and expenditures for climate change programs and activities, domestic and international, for fiscal year 1997, planned obligations for such activities in fiscal year 1998, and any plan for programs thereafter in the context of negotiations to amend the Framework Convention on Climate Change (FCCC) to be provided to the appropriate congressional committees no later than November 15, 1997.</content></section> <section><heading>AUTHORITY TO ISSUE INSURANCE AND EXTEND FINANCING</heading> <num value="581"><inline class="smallCaps">Sec.</inline> 581. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 235(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 2195(a)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking paragraphs (1) and (2)(A) and inserting the following: <quotedContent><paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">Insurance and financing</inline>.—</heading><subparagraph class="inline"><num value="A">(A) </num><content>The maximum contingent liability outstanding at any one time pursuant to insurance issued under section 234(a), and the amount of financing issued under sections 234(b) and (c), shall not exceed in the aggregate $29,000,000,000.”;</content></subparagraph></paragraph></quotedContent></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by redesignating paragraph (3) as paragraph (2); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by amending paragraph (2) (as so redesignated) by striking “<quotedText>September 30, 1997</quotedText>” and inserting “<quotedText>September 30, 1999</quotedText>”.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>Paragraph (2) of section 235(a) of that Act (22 U.S.C. 2195(a)), as redesignated by subsection (a), is further amended by striking “<quotedText>(a) and (b)</quotedText>” and inserting “<quotedText>(a), (b), and (c)</quotedText>”.</content></subsection></section> <section><heading>WITHHOLDING ASSISTANCE TO COUNTRIES VIOLATING UNITED NATIONS SANCTIONS AGAINST LIBYA</heading> <num value="582"><inline class="smallCaps">Sec.</inline> 582. </num><subsection class="inline"><num value="a">(a) </num><content>Withholding of Assistance—Except as provided in subsection (b), whenever the President determines and certifies to Congress that the government of any country is violating any sanction against Libya imposed pursuant to United Nations Security Council Resolution 731, 748, or 883, then not less than 5 percent of the funds allocated for the country under section 653(a) of the Foreign Assistance Act of 1961 out of appropriations in this Act shall be withheld from obligation and expenditure for that country.</content></subsection> <page identifier="/us/stat/111/2436">111 STAT. 2436</page> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Exception.</inline>—</heading><content>The requirement to withhold funds under subsection (a) shall not apply to funds appropriated in this Act for allocation under section 653(a) of the Foreign Assistance Act of 1961 for development assistance or for humanitarian assistance.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Waiver</inline>.—</heading><content>Funds may be provided for a country without regard to subsection (a) if the President determines that to do so is in the national security interest of the United States.</content></subsection></section> <section><heading>WAR CRIMES PROSECUTION</heading> <num value="583"><inline class="smallCaps">Sec.</inline> 583. </num><chapeau>Section 2401 of title 18, United States Code (Public <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t18/s2441">18 USC 2441</ref>.</p></sidenote>Law 104–192; the War Crimes Act of 1996) is amended as follows—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subsection (a), by striking “<quotedText>grave breach of the Geneva Conventions</quotedText>” and inserting “<quotedText>war crime</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in subsection (b), by striking “<quotedText>breach</quotedText>” each place it appears and inserting “<quotedText>war crime</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>so that subsection (c) reads as follows: <quotedContent><subsection class="indent0 fontsize10"><num value="c">“(c) </num><heading><inline class="smallCaps">Definition</inline>.—</heading><chapeau>As used in this section the term ‘war crime’ means any conduct—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>defined as a grave breach in any of the international conventions signed at Geneva 12 August 1949, or any protocol to such convention to which the United States is a party;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>prohibited by Article 23, 25, 27, or 28 of the Annex to the Hague Convention IV, Respecting the Laws and Customs of War on Land, signed 18 October 1907;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>which constitutes a violation of common Article 3 of the international conventions signed at Geneva, 12 August 1949, or any protocol to such convention to which the United States is a party and which deals with non-international armed conflict; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>of a person who, in relation to an armed conflict and contrary to the provisions of the Protocol on Prohibitions or Restrictions on the Use of Mines, Booby-Traps and Other Devices as amended at Geneva on 3 May 1996 (Protocol II as amended on 3 May 1996), when the United States is a party to such Protocol, willfully kills or causes serious injury to civilians.”.</content></paragraph></subsection></quotedContent></content></paragraph></section> <section><heading>INTERNATIONAL MILITARY EDUCATION AND TRAINING PROGRAMS FORLATIN AMERICA</heading> <num value="584"><inline class="smallCaps">Sec.</inline> 584. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Expanded IMET</inline>.—</heading><content>The Secretary of Defense, in consultation with the Secretary of State, should make every effort to ensure that approximately 30 percent of the funds appropriated in this Act for “International Military Education and Training” for the cost of Latin American participants in IMET programs will be disbursed for the purpose of supporting enrollment of such participants in expanded IMET courses.</content></subsection> <page identifier="/us/stat/111/2437">111 STAT. 2437</page> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Civilian Participation</inline>.—</heading><content>The Secretary of State, in consultation with the Secretary of Defense, should identify sufficient numbers of qualified, non-military personnel from countries in Latin America so that approximately 25 percent of the total number of individuals from Latin American countries attending United States supported I MET programs and the Center for Hemispheric Defense Studies at the National Defense University are civilians.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Report.</inline>—</heading><content>Not later than twelve months after the date of enactment of this Act, the Secretary of Defense, in consultation with the Secretary of State, shall report in writing to the appropriate committees of the Congress on the progress made to improve military training of Latin American participants in the areas of human rights and civilian control of the military. The Secretary shall include in the report plans for implementing additional expanded IMET programs for Latin America during the next three fiscal years.</content></subsection></section> <section><heading>AID TO THE GOVERNMENT OF THE DEMOCRATIC REPUBLIC OF CONGO</heading> <num value="585"><inline class="smallCaps">Sec.</inline> 585. </num><content>None of the funds appropriated or otherwise made <sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote>available by this Act may be provided to the central Government of the Democratic Republic of Congo until such time as the President reports in writing to the Congress that the central Government of the Democratic Republic of Congo is cooperating fully with investigators from the United Nations in accounting for human rights violations committed in the Democratic Republic of Congo or adjacent countries.</content></section> <section><heading>ASSISTANCE FOR THE MIDDLE EAST</heading> <num value="586"><inline class="smallCaps">Sec.</inline> 586. </num><content>Of the funds appropriated by this Act under the headings “<shortTitle role="act">Economic Support Fund</shortTitle>”, “<shortTitle role="act">Foreign Military Financing</shortTitle>”, “<shortTitle role="act">International Military Education and Training</shortTitle>”, “<shortTitle role="act">Peacekeeping Operations</shortTitle>”, for refugees resettling in Israel under the heading “<shortTitle role="act">Migration and Refugee Assistance</shortTitle>”, and for assistance for Israel to carry out provisions of chapter 8 of part II of the Foreign Assistance Act of 1961 under the heading “<shortTitle role="act">Nonproliferation, Anti-Terrorism, Demining, and Related Programs</shortTitle>”, not more than a total of $5,402,850,000 may be made available for Israel, Egypt, Jordan, Lebanon, the West Bank and Gaza, the Israel-Lebanon Monitoring Group, the Multinational Force and Observers, the Middle East Regional Democracy Fund, Middle East Regional Cooperation, and Middle East Multilateral Working Groups: <proviso><i>Provided,</i> That any funds that were appropriated under such headings in prior fiscal years and that were at the time of enactment of this Act obligated or allocated for other recipients may not during fiscal year 1998 be made available for activities that, if funded under this Act, would be required to count against this ceiling</proviso>: <proviso><i>Provided further</i>, That funds may be made available notwithstanding the requirements of this section if the President determines and certifies to the Committees on Appropriations that it is important to the national security interest of the United States to do so and any such additional funds shall only be provided through the regular notification procedures of the Committees on Appropriations</proviso>.</content></section> <page identifier="/us/stat/111/2438">111 STAT. 2438</page> <section><heading>AGRICULTURE</heading> <num value="587"><inline class="smallCaps">Sec.</inline> 587. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/110/3009–129">110 Stat. 3009–129</ref>.</p></sidenote><content class="inline">The first proviso of subsection (k) under the heading “Assistance for the New Independent States of the Former Soviet Union” in the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1997, as contained in Public Law 104–208, is amended by striking “not less than” and inserting in lieu thereof “up to”.</content></section> <section><heading>ENTERPRISE FUND RESTRICTIONS</heading> <num value="588"><inline class="smallCaps">Sec.</inline> 588. </num><content>Section 201(1) of the Support for East European Democracy Act (22 U.S.C. 5421(1)) is amended to read as follows: <quotedContent><subsection class="indent0 fontsize10"><num value="l">“(l) </num><heading><inline class="smallCaps">Limitation on Payments to Enterprise Fund Personnel.</inline>—</heading> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>No part of the funds of an Enterprise Fund shall inure to the benefit of any board member, officer, or employee of such Enterprise Fund, except as salary or reasonable compensation for services subject to paragraph (2).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><chapeau>An Enterprise Fund shall not pay compensation for services to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>any board member of the Enterprise Fund, except for services as a board member; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>any firm, association, or entity in which a board member of the Enterprise Fund serves as partner, director, officer, or employee.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>Nothing in paragraph (2) shall preclude payment for services performed before the date of enactment of this subsection nor for arrangements approved by the grantor and notified in writing to the Committees on Appropriations.”.</content></paragraph></subsection></quotedContent></content></section> <section><heading>CAMBODIA</heading> <num value="589"><inline class="smallCaps">Sec.</inline> 589. </num><content>The Secretary of the Treasury should instruct the United States executive directors of the international financial institutions to use the voice and vote of the United States to oppose loans to the Government of Cambodia, except loans to support basic human needs.</content></section> <section><heading>EXPORT FINANCING TRANSFER AUTHORITIES</heading> <num value="590"><inline class="smallCaps">Sec.</inline> 590. </num><content>Not to exceed 5 percent of any appropriation other than for administrative expenses made available for fiscal year 1998 for programs under title I of this Act may be transferred between such appropriations for use for any of the purposes, programs and activities for which the funds in such receiving account may be used, but no such appropriation, except as otherwise specifically provided, shall be increased by more than 25 percent by any such transfer: <proviso><i>Provided,</i> That the exercise of such authority shall be subject to the regular notification procedures of the Committees on Appropriations</proviso>.</content></section> <page identifier="/us/stat/111/2439">111 STAT. 2439</page> <section><heading>DEVELOPMENT CREDIT AUTHORITY</heading> <num value="591"><inline class="smallCaps">Sec.</inline> 591. </num><content>For the cost, as defined in section 502 of the Congressional Budget Act of 1974, of direct loans and loan guarantees in support of the development objectives of the Foreign Assistance Act of 1961, up to $7,500,000, which amount may be derived by transfer from funds appropriated by this Act to carry out part I of the Foreign Assistance Act of 1961 and funds appropriated by this Act under the heading “Assistance for Eastern Europe and the Baltic States”, to remain available until expended: <proviso><i>Provided, </i>That up to $500,000 of the funds appropriated by this Act under the heading “Operating Expenses of the Agency for International Development” may be made available for administrative expenses to carry out such programs</proviso>: <proviso><i>Provided further</i>, That the provisions Applicability, of section 107A(d) (relating to general provisions applicable to development credit authority) of the Foreign Assistance Act of 1961, as added by section 306 of H.R. 1486 as reported by the House Committee on International Relations on May 9, 1997, shall be applicable to direct loans and loan guarantees provided under this paragraph</proviso>: <proviso><i>Provided further</i>, That direct loans or loan guarantees under this paragraph may not be provided until the Director of the Office of Management and Budget has certified to the Committees on Appropriations that the Agency for International Development has established a credit management system capable of effectively managing the credit programs funded under this heading, including that such system: (1) can provide accurate and timely provision of loan and loan guarantee data; (2) contains information control systems for loan and loan guarantee data; (3) is adequately staffed; and (4) contains appropriate review and monitoring procedures</proviso>.</content></section> <section><heading>AUTHORIZATION FOR POPULATION PLANNING</heading> <num value="592"><inline class="smallCaps">Sec.</inline> 592. </num><subsection class="inline"><num value="a">(a) </num><content>Not to exceed $385,000,000 of the funds appropriated in title II of this Act may be available for population planning activities or other population assistance.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Such funds may be apportioned only on a monthly basis, and such monthly apportionments may not exceed 8.34 percent of the total available for such activities.</content></subsection> <continuation>This Act may be cited as the “<shortTitle role="act">Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1998”</shortTitle>.</continuation></section> Approved November 26, 1997.
LEGISLATIVE HISTORY—H.R. 2159 (S. 955): HOUSE REPORTS: Nos. 105–176 (Comm. on Appropriations) and 105–401 (Comm. of Conference). SENATE REPORTS: No. 105–35 accompanying S. 955 (Comm. on Appropriations). CONGRESSIONAL RECORD, Vol. 143 (1997):

July 30, Sept. 3, 4, considered and passed House.

Sept. 5, considered and passed Senate, amended, in lieu of S. 955.

Nov. 12, House agreed to conference report.

Nov. 13, Senate agreed to conference report.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):

Nov. 26, Presidential statement.

 Public Law 105–119: Making appropriations for the Departments of Commerce, Justice, and State, the Judiciary, and related agencies for the fiscal year ending September 30, 1998, and for other purposes. Public Law119 Public Law 105–119 111 Stat. 2440 1997-11-26 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2440

*Note: This law contains an item that was cancelled by the President pursuant to the Line Item Veto Act For more information, see the Federal Register entry under “LEGISLATIVE HISTORY” at the end of this law.

 Public Law105–119 105th Congress
An Act Making appropriations for the Departments of Commerce, Justice, and State, the Judiciary, and related agencies for the fiscal year ending September 30, 1998, and for other purposes.

Nov. 26, 1997

[H.R. 2267]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1998. Department of Justice Appropriations Act, 1998.
That the following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 1998, and for other purposes, namely:
<num value="I">TITLE I—</num><heading>DEPARTMENT OF JUSTICE</heading> <appropriations level="intermediate"> <heading>General Administration</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For expenses necessary for the administration of the Department of Justice, $76,199,000, of which not to exceed $3,317,000 is for the Facilities Program 2000, to remain available until expended: <proviso><i>Provided,</i> That not to exceed 43 permanent positions and 44 full-time equivalent workyears and $7,860,000 shall be expended for the Department Leadership Program exclusive of augmentation that occurred in these offices in fiscal year 1997:</proviso> <proviso><i>Provided further</i>, That not to exceed 41 permanent positions and 48 full-time equivalent workyears and $4,660,000 shall be expended for the Offices of Legislative Affairs and Public Affairs:</proviso> <proviso><i>Provided further</i>, That the latter two aforementioned offices shall not be augmented by personnel details, temporary transfers of personnel on either a reimbursable or non-reimbursable basis or any other type of formal or informal transfer or reimbursement of personnel or funds on either a temporary or long-term basis</proviso>.</content> </appropriations> <appropriations level="small"> <heading>counterterrorism fund</heading> <chapeau><p class="indent0 firstIndent1 fontsize10">For necessary expenses, as determined by the Attorney General, $20,000,000 to remain available until expended, to reimburse any Department of Justice organization for: (1) the costs incurred in reestablishing the operational capability of an office or facility which has been damaged or destroyed as a result of any domestic or international terrorist incident; (2) the costs of providing support to counter, investigate or prosecute domestic or international terrorism, including payment of rewards in connection with these activities; and (3) the costs of conducting a terrorism threat assessment <sidenote><p class="indent0 firstIndent0 fontsize8">Notification.</p></sidenote>of Federal agencies and their facilities: <i>Provided,</i> That funds provided under this paragraph shall be available only after the Attorney General notifies the Committees on Appropriations of <page identifier="/us/stat/111/2441">111 STAT. 2441</page>the House of Representatives and the Senate in accordance with section 605 of this Act.</p> <p>In addition, for necessary expenses, as determined by the Attorney General, $32,700,000, to remain available until expended, to reimburse departments and agencies of the Federal Government for any costs incurred in connection with—</p></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>counterterrorism technology research and development;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>providing training and related equipment for chemical, biological, nuclear, and cyber attack prevention and response capabilities to State and local law enforcement agencies; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>providing bomb training and response capabilities to State and local law enforcement agencies.</content></paragraph> </appropriations> <appropriations level="small"> <heading>administrative review and appeals</heading> <content>For expenses necessary for the administration of pardon and clemency petitions and immigration related activities, $70,007,000.</content> </appropriations> <appropriations level="small"> <heading>violent crime reduction programs, administrative review and appeals</heading> <content>For activities authorized by section 130005 of the Violent Crime Control and Law Enforcement Act of 1994 (Public Law 103–322), as amended, $59,251,000, to remain available until expended, which shall be derived from the Violent Crime Reduction Trust Fund.</content> </appropriations> <appropriations level="small"> <heading>office of inspector general</heading> <content>For necessary expenses of the Office of Inspector General in carrying out the provisions of the Inspector General Act of 1978, as amended, $33,211,000; including not to exceed $10,000 to meet unforeseen emergencies of a confidential character, to be expended under the direction of, and to be accounted for solely under the certificate of, the Attorney General; and for the acquisition, lease, maintenance, and operation of motor vehicles, without regard to the general purchase price limitation for the current fiscal year: <proviso><i>Provided,</i> That up to one-tenth of one percent of the Department of Justice’s allocation from the Violent Crime Reduction Trust Fund grant programs may be transferred at the discretion of the Attorney General to this account for the audit or other review of such grant programs, as authorized by section 130005 of the Violent Crime Control and Law Enforcement Act of 1994 (Public Law 103–322)</proviso>.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>United States Parole Commission</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the United States Parole Commission as authorized by law, $5,009,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Legal Activities</heading> <appropriations level="small"> <heading>salaries and expenses, general legal activities</heading> <content><p class="indent0 firstIndent1 fontsize10">For expenses, necessary for the legal activities of the Department of Justice, not otherwise provided for, including not to exceed $20,000 for expenses of collecting evidence, to be expended under the direction of, and to be accounted for solely under the certificate <page identifier="/us/stat/111/2442">111 STAT. 2442</page>of, the Attorney General; and rent of private or Government-owned space in the District of Columbia; $444,200,000; of which not to exceed $10,000,000 for litigation support contracts shall remain available until expended: <proviso><i>Provided.</i> That of the funds available in this appropriation, not to exceed $17,525,000 shall remain available until expended for office automation systems for the legal divisions covered by this appropriation, and for the United States Attorneys, the Antitrust Division, and offices funded through “Salaries and Expenses”, General Administration:</proviso> <proviso><i>Provided further</i>, That of the total amount appropriated, not to exceed $1,000 shall be available to the United States National Central Bureau, INTERPOL, for official reception and representation expenses</proviso>.</p> <p class="indent0 firstIndent1 fontsize10">In addition, for reimbursement of expenses of the Department of Justice associated with processing cases under the National Childhood Vaccine Injury Act of 1986, as amended, not to exceed $4,028,000, to be appropriated from the Vaccine Injury Compensation Trust Fund.</p></content> </appropriations> <appropriations level="small"> <heading>violent crime reduction programs, general legal activities</heading> <content>For the expeditious deportation of denied asylum applicants, as authorized by section 130005 of the Violent Crime Control and Law Enforcement Act of 1994 (Public Law 103–322), as amended, $7,969,000, to remain available until expended, which shall be derived from the Violent Crime Reduction Trust Fund.</content> </appropriations> <appropriations level="small"> <heading>salaries and expenses, antitrust division</heading> <content>For expenses necessary for the enforcement of antitrust and kindred laws, $75,495,000: Provided, That notwithstanding any other provision of law, not to exceed $70,000,000 of offsetting collections derived from fees collected for premerger notification filings under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (15 U.S.C. 18(a)) shall be retained and used for necessary expenses in this appropriation, and shall remain available until expended: <proviso><i>Provided further</i>, That the sum herein appropriated from the general fund shall be reduced as such offsetting collections are received during fiscal year 1998, so as to result in a final fiscal year 1998 appropriation from the general fund estimated at not more than $5,495,000:</proviso> <proviso><i>Provided further</i>, That any fees received in excess of $70,000,000 in fiscal year 1998, shall remain available until expended, but shall not be available for obligation until October 1, 1998</proviso>.</content> </appropriations> <appropriations level="small"> <heading>salaries and expenses, united states attorneys</heading> <content>For necessary expenses of the Office of the United States Attorneys, including intergovernmental and cooperative agreements, $972,460,000; of which not to exceed $2,500,000 shall be available until September 30, 1999, for. (1) training personnel in debt collection; (2) locating debtors and their property; (3) paying the net costs of selling property; and (4) tracking debts owed to the United States Government: <proviso><i>Provided</i>, That of the total amount appropriated, not to exceed $8,000 shall be available for official reception and representation expenses</proviso>: <proviso><i>Provided further</i>, That not to exceed $10,000,000 of those funds available for automated litigation support contracts shall remain available until expended</proviso>: <proviso><i>Provided further</i>, That not to exceed $1,200,000 for the design, development, <page identifier="/us/stat/111/2443">111 STAT. 2443</page>and implementation of an information systems strategy for D.C. Superior Court shall remain available until expended</proviso>: <proviso><i>Provided further</i>, That not to exceed $2,500,000 for the operation of the National Advocacy Center shall remain available until expended</proviso>: <proviso><i>Provided further</i>, That not to exceed $2,000,000 shall remain available until expended for the expansion of existing Violent Crime Task Forces in United States Attorneys Offices into demonstration projects, including inter-governmental, inter-local, cooperative, and task-force agreements, however denominated, and contracts with State and local prosecutorial and law enforcement agencies engaged in the investigation and prosecution of violent crimes, including bank robbery and carjacking, and drug trafficking</proviso>: <proviso><i>Provided further</i>, That, in addition to reimbursable full-time equivalent workyears available to the Office of the United States Attorneys, not to exceed 8,948 positions and 9,113 full-time equivalent workyears shall be supported from the funds appropriated in this Act for the United States Attorneys</proviso>.</content> </appropriations> <appropriations level="small"> <heading>violent crime reduction programs, united states attorneys</heading> <content>For activities authorized by sections 40114, 130005, 190001(b), 190001(d), and 250005 of the Violent Crime Control and Law Enforcement Act of 1994 (Public Law 103–322), as amended, and section 815 of the Antiterrorism and Effective Death Penalty Act of 1996 (Public Law 104–132), $62,828,000, to remain available until expended, which shall be derived from the Violent Crime Reduction Trust Fund.</content> </appropriations> <appropriations level="small"> <heading>united states trustee system fund</heading> <content>For necessary expenses of the United States Trustee Program, as authorized by 28 U.S.C. 589a(a), $114,248,000, to remain available until expended and to be derived from the United States Trustee System Fund: <proviso><i>Provided</i>, That, notwithstanding any other provision of law, deposits to the Fund shall be available in such amounts as may be necessary to pay refunds due depositors</proviso>: <proviso><i>Provided further</i>, That, notwithstanding any other provision of law, $114,248,000 of offsetting collections derived from fees collected pursuant to 28 U.S.C. 589a(b) shall be retained and used for necessary expenses in this appropriation and remain available until expended</proviso>: <proviso><i>Provided further</i>, That the sum herein appropriated from the Fund shall be reduced as such offsetting collections are received during fiscal year 1998, so as to result in a final fiscal year 1998 appropriation from the Fund estimated at $0</proviso>: <proviso><i>Provided further</i>, That any such fees collected in excess of $114,248,000 in fiscal year 1998 shall remain available until expended but shall not be available for obligation until October 1, 1998</proviso>.</content> </appropriations> <appropriations level="small"> <heading>salaries and expenses, foreign claims settlement commission</heading> <content>For expenses necessary to carry out the activities of the Foreign Claims Settlement Commission, including services as authorized by 5 U.S.C. 3109, $1,226,000.</content> </appropriations> <appropriations level="small"> <heading>salaries and expenses, united states marshals service</heading> <content>For necessary expenses of the United States Marshals Service; including the acquisition, lease, maintenance, and operation of vehicles and aircraft, and the purchase of passenger motor vehicles <page identifier="/us/stat/111/2444">111 STAT. 2444</page>for police-type use, without regard to the general purchase price limitation for the current fiscal year, $467,833,000, as authorized by 28 U.S.C. 561(i); of which not to exceed $6,000 shall be available for official reception and representation expenses; and of which not to exceed $4,000,000 for development, implementation, maintenance and support, and training for an automated prisoner information system, and not to exceed $2,200,000 to support the Justice Prisoner and Alien Transportation System, shall remain <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t31/s6505">31 USC 6505</ref> note.</p></sidenote>available until expended: <proviso><i>Provided,</i> That, for fiscal year 1998 and thereafter, the service of maintaining and transporting State, local, or territorial prisoners shall be considered a specialized or technical service for purposes of 31 U.S.C. 6505, and any prisoners so transported shall be considered persons (transported for other than commercial purposes) whose presence is associated with the performance of a governmental function for purposes of 49 U.S.C. 40102</proviso>.</content> </appropriations> <appropriations level="small"> <heading>violent crime reduction programs, united states marshals service</heading> <content>For activities authorized by section 190001(b) of the Violent Crime Control and Law Enforcement Act of 1994 (Public Law 103–322), as amended, $25,553,000, to remain available until expended, which shall be derived from the Violent Crime Reduction Trust Fund.</content> </appropriations> <appropriations level="small"> <heading>federal prisoner detention</heading> <content>For expenses, related to United States prisoners in the custody of the United States Marshals Service as authorized in 18 U.S.C. 4013, but not including expenses otherwise provided for in appropriations available to the Attorney General, $405,262,000, as authorized by 28 U.S.C. 561(i), to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>fees and expenses of witnesses</heading> <content>For expenses, mileage, compensation, and per diems of witnesses, for expenses of contracts for the procurement and supervision of expert witnesses, for private counsel expenses, and for per diems in lieu of subsistence, as authorized by law, including advances, $75,000,000, to remain available until expended; of which not to exceed $4,750,000 may be made available for planning, construction, renovations, maintenance, remodeling, and repair of buildings, and the purchase of equipment incident thereto, for protected witness safesites; of which not to exceed $1,000,000 may be made available for the purchase and maintenance of armored vehicles for transportation of protected witnesses; and of which not to exceed $4,000,000 may be made available for the purchase, installation and maintenance of a secure, automated information network to store and retrieve the identities and locations of protected witnesses.</content> </appropriations> <appropriations level="small"> <heading>salaries and expenses, community relations service</heading> <content>For necessary expenses of the Community Relations Service, established by title X of the Civil Rights Act of 1964, $5,319,000 and, in addition, up to $2,000,000 of funds made available to the Department of Justice in this Act may be transferred by the Attorney General to this account: <proviso><i>Provided,</i> That notwithstanding any <page identifier="/us/stat/111/2445">111 STAT. 2445</page>other provision of law, upon a determination by the Attorney General that emergent circumstances require additional funding for conflict prevention and resolution activities of the Community Relations Service, the Attorney General may transfer such amounts to the Community Relations Service, from available appropriations for the current fiscal year for the Department of Justice, as may be necessary to respond to such circumstances</proviso>: <proviso><i>Provided further</i>, That any transfer pursuant to the previous proviso shall be treated as a reprogramming under section 605 of this Act and shall not be available for obligation or expenditure except in compliance with the procedures set forth in that section</proviso>.</content> </appropriations> <appropriations level="small"> <heading>assets forfeiture fund</heading> <content>For expenses authorized by 28 U.S.C. 524(cXlXAXii), (B), (F), and (G), as amended, $23,000,000, to be derived from the Department of Justice Assets Forfeiture Fund.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Radiation Exposure Compensation</heading> <appropriations level="small"> <heading>administrative expenses</heading> <content>For necessary administrative expenses in accordance with the Radiation Exposure Compensation Act, $2,000,000.</content> </appropriations> <appropriations level="small"> <heading>payment to radiation exposure compensation trust fund</heading> <content>For payments to the Radiation Exposure Compensation Trust Fund, $4,381,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Interagency Law Enforcement</heading> <appropriations level="small"> <heading>interagency crime and drug enforcement</heading> <content>For necessary expenses for the detection, investigation, and prosecution of individuals involved in organized crime drug trafficking not otherwise provided for, to include intergovernmental agreements with State and local law enforcement agencies engaged in the investigation and prosecution of individuals involved in organized crime drug trafficking, $294,967,000, of which $50,000,000 shall remain available until expended: <proviso><i>Provided,</i> That any amounts obligated from appropriations under this heading may be used under authorities available to the organizations reimbursed from this appropriation</proviso>: <proviso><i>Provided further</i>, That any unobligated balances remaining available at the end of the fiscal year shall revert to the Attorney General for reallocation among participating organizations in succeeding fiscal years, subject to the reprogramming procedures described in section 605 of this Act</proviso>.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Federal Bureau of Investigation</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Federal Bureau of Investigation for detection, investigation, and prosecution of crimes against the United States; including purchase for police-type use of not to exceed 3,094 passenger motor <page identifier="/us/stat/111/2446">111 STAT. 2446</page>vehicles, of which 2,270 will be for replacement only, without regard to the general purchase price limitation for the current fiscal year, and hire of passenger motor vehicles; acquisition, lease, maintenance, and operation of aircraft; and not to exceed $70,000 to meet unforeseen emergencies of a confidential character, to be expended under the direction of, and to be accounted for solely under the certificate of, the Attorney General, $2,750,921,000; of which not to exceed $50,000,000 for automated data processing and telecommunications and technical investigative equipment and not to exceed $1,000,000 for undercover operations shall remain available until September 30, 1999; of which not less than $221,050,000 shall be for counterterrorism investigations, foreign counterintelligence, and other activities related to our national security; of which not to exceed $98,400,000 shall remain available until expended; of which not to exceed $10,000,000 is authorized to be made available for making advances for expenses arising out of contractual or reimbursable agreements with State and local law enforcement agencies while engaged in cooperative activities related to violent crime, terrorism, organized crime, and drug investigations; and of which $1,500,000 shall be available to maintain an independent program office dedicated solely to the relocation of the Criminal Justice Information Services Division and the automation of fingerprint identification services: <proviso><i>Provided,</i> That not to exceed $45,000 shall be available for official reception and representation expenses</proviso>: <proviso><i>Provided further</i>, That no funds in this Act may be used to provide ballistics imaging equipment to any State or local authority which has obtained similar equipment through a Federal grant or subsidy unless the State or local authority agrees to return that equipment or to repay that grant or subsidy to the Federal Government</proviso>.</content> </appropriations> <appropriations level="small"> <heading>violent crime reduction programs</heading> <content>For activities authorized by the Violent Crime Control and Law Enforcement Act of 1994 (Public Law 103–322), as amended (“the 1994 Act”), and the Antiterrorism and Effective Death Penalty Act of 1996 (“the Antiterrorism Act”), $179,121,000, to remain available until expended, which shall be derived from the Violent Crime Reduction Trust Fund; of which $102,127,000 shall be for activities authorized by section 190001(c) of the 1994 Act and section 811 of the Antiterrorism Act; $57,994,000 shall be for activities authorized by section 190001(b) of the 1994 Act; $4,000,000 shall be for training and investigative assistance authorized by section 210501 of the 1994 Act; $9,500,000 shall be for grants to States, as authorized by section 811(b) of the Antiterrorism Act; and $5,500,000 shall be for establishing DNA quality-assurance and proficiency-testing standards, establishing an index to facilitate law enforcement exchange of DNA identification information, and related activities authorized by section 210501 of the 1994 Act.</content> </appropriations> <appropriations level="small"> <heading>construction</heading> <content>For necessary expenses to construct or acquire buildings and sites by purchase, or as otherwise authorized by law (including equipment for such buildings); conversion and extension of federally owned buildings; and preliminary planning and design of projects; $44,506,000, to remain available until expended.</content> </appropriations> </appropriations> <page identifier="/us/stat/111/2447">111 STAT. 2447</page> <appropriations level="intermediate"> <heading>Drug Enforcement Administration</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Drug Enforcement Administration, including not to exceed $70,000 to meet unforeseen emergencies of a confidential character, to be expended under the direction of, and to be accounted for solely under the certificate of, the Attorney General; expenses for conducting drug education and training programs, including travel and related expenses for participants in such programs and the distribution of items of token value that promote the goals of such programs; purchase of not to exceed 1,602 passenger motor vehicles, of which 1,410 will be for replacement only, for police-type use without regard to the general purchase price limitation for the current fiscal year; and acquisition, lease, maintenance, and operation of aircraft; $723,841,000, of which not to exceed $1,800,000 for research and $15,000,000 for transfer to the Drug Diversion Control Fee Account for operating expenses shall remain available until expended, and of which not to exceed $4,000,000 for purchase of evidence and payments for information, not to exceed $10,000,000 for contracting for automated data processing and telecommunications equipment, and not to exceed $2,000,000 for laboratory equipment, $4,000,000 for technical equipment, and $2,000,000 for aircraft replacement retrofit and parts, shall remain available until September 30, 1999; and of which not to exceed $50,000 shall be available for official reception and representation expenses.</content> </appropriations> <appropriations level="small"> <heading>violent crime reduction programs</heading> <content>For activities authorized by sections 180104 and 190001(b) of the Violent Crime Control and Law Enforcement Act of 1994 (Public Law 103–322), as amended, and section 814 of the Antiterrorism and Effective Death Penalty Act of 1996 (Public Law 104–132), $403,537,000, to remain available until expended, which shall be derived from the Violent Crime Reduction Trust Fund.</content> </appropriations> <appropriations level="small"> <heading>construction</heading> <content>For necessary expenses to construct or acquire buildings and sites by purchase, or as otherwise authorized by law (including equipment for such buildings); conversion and extension of federally owned buildings; and preliminary planning and design of projects; $8,000,000, to remain available until expended.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Immigration and Naturalization Service</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For expenses, not otherwise provided for, necessary for the administration and enforcement of the laws relating to immigration, naturalization, and alien registration, including not to exceed $50,000 to meet unforeseen emergencies of a confidential character, to be expended under the direction of, and to be accounted for solely under the certificate of, the Attorney General; purchase for police-type use (not to exceed 2,904 passenger motor vehicles, of which 1,711 are for replacement only), without regard to the general purchase price limitation for the current fiscal year, and hire of <page identifier="/us/stat/111/2448">111 STAT. 2448</page>passenger motor vehicles; acquisition, lease, maintenance and operation of aircraft; research related to immigration enforcement; and for the care and housing of Federal detainees held in the joint Immigration and Naturalization Service and United States Marshals Service’s Buffalo Detention Facility; $1,657,886,000 of which not to exceed $400,000 for research shall remain available until expended; of which not to exceed $10,000,000 shall be available for costs associated with the training program for basic officer training, and $5,000,000 is for payments or advances arising out of contractual or reimbursable agreements with State and local law enforcement agencies while engaged in cooperative activities related to immigration; and of which not to exceed $5,000,000 is to fund or reimburse other Federal agencies for the costs associated with the care, maintenance, and repatriation of smuggled illegal aliens: <proviso><i>Provided,</i> That none of the funds available to the Immigration and Naturalization Service shall be available to pay any employee overtime pay in an amount in excess of $30,000 during the calendar year beginning January 1, 1998</proviso>: <proviso><i>Provided further</i>, That uniforms may be purchased without regard to the general purchase price limitation for the current fiscal year</proviso>: <proviso><i>Provided further</i>, That not to exceed $5,000 shall be available for official reception and representation expenses</proviso>: <proviso><i>Provided further</i>, That none of the funds provided in this or any other Act shall be used for the continued operation of the San Clemente and Temecula checkpoints unless the checkpoints are open and traffic is being checked on a continuous 24-hour basis</proviso>: <proviso><i>Provided further</i>, That not to exceed 43 permanent positions and 43 full-time equivalent workyears and $4,167,000 shall be expended for the Office of Legislative Affairs and Public Affairs</proviso>: <proviso><i>Provided further</i>, That the latter two aforementioned offices shall not be augmented by personnel details, temporary transfers of personnel on either a reimbursable or non-reimbursable basis or any other type of formal or informal transfer or reimbursement of personnel or funds on <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1103">8 USC 1103</ref> note.</p></sidenote>either a temporary or long-term basis</proviso>: <proviso><i>Provided further</i>, That beginning seven calendar days after the enactment of this Act and for each fiscal year thereafter, none of the funds appropriated or otherwise made available to the Immigration and Naturalization Service may be used by the Immigration and Naturalization Service to accept, for the purpose of conducting criminal background checks on applications for any benefit under the Immigration and Nationality Act, any FD-258 fingerprint card which has been prepared by or received from any individual or entity other than an office of the Immigration and Naturalization Service with the following exceptions: (1) State and local law enforcement agencies; and (2) United States consular offices at United States embassies and consulates abroad under the jurisdiction of the Department of State or United States military offices under the jurisdiction of the Department of Defense authorized to perform fingerprinting services to prepare FD—258 fingerprint cards for applicants residing <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1446">8 USC 1446</ref> note.</p></sidenote>abroad applying for immigration benefits</proviso>: <proviso><i>Provided further,</i> That agencies may collect and retain a fee for fingerprinting services</proviso>: <proviso><i>Provided further</i>, That, during fiscal year 1998 and each fiscal year thereafter, none of the funds appropriated or otherwise made available to the Immigration and Naturalization Service shall be used to complete adjudication of an application for naturalization unless the Immigration and Naturalization Service has received confirmation from the Federal Bureau of Investigation that a full <page identifier="/us/stat/111/2449">111 STAT. 2449</page>criminal background check has been completed, except for those exempted by regulation as of January 1, 1997</proviso>: <proviso><i>Provided further</i>, That the number of positions filled through non-career appointment at the Immigration and Naturalization Service, for which funding is provided in this Act or is otherwise made available to the Immigration and Naturalization Service, shall not exceed four permanent positions and four full-time equivalent workyears after July 1, 1998</proviso>: <proviso><i>Provided further</i>, That notwithstanding any other provision of law, during fiscal year 1998, the Attorney General is authorized and directed to impose disciplinary action, including termination of employment, pursuant to policies and procedures applicable to employees of the Federal Bureau of Investigation, for any employee of the Immigration and Naturalization Service who violates policies and procedures set forth by the Department of Justice relative to the granting of citizenship or who willfully deceives the Congress or department leadership on any matter</proviso>.</content> </appropriations> <appropriations level="small"> <heading>violent crime reduction programs</heading> <content>For activities authorized by sections 130002, 130005, 130006, 130007, and 190001(b) of the Violent Crime Control and Law Enforcement Act of 1994 (Public Law 103–322), as amended, and section 813 of the Antiterrorism and Effective Death Penalty Act of 1996 (Public Law 104–132), $608,206,000, to remain available until expended, which will be derived from the Violent Crime Reduction Trust Fund.</content> </appropriations> <appropriations level="small"> <heading>construction</heading> <content>For planning, construction, renovation, equipping, and maintenance of buildings and facilities necessary for the administration and enforcement of the laws relating to immigration, naturalization, and alien registration, not otherwise provided for, $75,959,000, to remain available until expended.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Federal Prison System</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For expenses necessary for the administration, operation, and maintenance of Federal penal and correctional institutions, including purchase (not to exceed 834, of which 599 are for replacement only) and hire of law enforcement and passenger motor vehicles, and for the provision of technical assistance and advice on corrections related issues to foreign governments; $2,821,642,000: <proviso><i>Provided,</i> That the Attorney General may transfer to the Health <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s250a">42 USC 250a</ref>.</p></sidenote>Resources and Services Administration such amounts as may be necessary for direct expenditures by that Administration for medical relief for inmates of Federal penal and correctional institutions: Provided further, That the Director of the Federal Prison System (FPS), where necessary, may enter into contracts with a fiscal agent/fiscal intermediary claims processor to determine the amounts payable to persons who, on behalf of the FPS, furnish health services to individuals committed to the custody of the FPS</proviso>: <proviso><i>Provided further</i>, That uniforms may be purchased without regard to the general purchase price limitation for the current fiscal year</proviso>: <proviso><i>Provided further</i>, That not to exceed $6,000 shall be available for official reception and representation expenses</proviso>: <proviso><i>Provided further</i>, <page identifier="/us/stat/111/2450">111 STAT. 2450</page>That not to exceed $90,000,000 for the activation of new facilities shall remain available until September 30, 1999: Provided further, That of the amounts provided for Contract Confinement, not to exceed $20,000,000 shall remain available until expended to make payments in advance for grants, contracts and reimbursable agreements, and other expenses authorized by section 501(c) of the Refugee Education Assistance Act of 1980, as amended, for the care and security in the United States of Cuban and Haitian entrants</proviso>: <proviso><i>Provided further</i>, That notwithstanding section 4(d) of the Service Contract Act of 1965 (41 U.S.C. 353(d)), FPS may enter into contracts and other agreements with private entities for periods of not to exceed 3 years and 7 additional option years for the confinement of Federal prisoners</proviso>.</content> </appropriations> <appropriations level="small"> <heading>violent crime reduction programs</heading> <content>For substance abuse treatment in Federal prisons as authorized by section 32001(e) of the Violent Crime Control and Law Enforcement Act of 1994 (Public Law 103–322), as amended, $26,135,000, to remain available until expended, which shall be derived from the Violent Crime Reduction Trust Fund.</content> </appropriations> <appropriations level="small"> <heading>buildings and facilities</heading> <content>For planning, acquisition of sites and construction of new facilities; leasing the Oklahoma City Airport Trust Facility; purchase and acquisition of facilities and remodeling, and equipping of such facilities for penal and correctional use, including all necessary expenses incident thereto, by contract or force account; and constructing, remodeling, and equipping necessary buildings and facilities at existing penal and correctional institutions, including all necessary expenses incident thereto, by contract or force account; $255,133,000, to remain available until expended, of which not to exceed $14,074,000 shall be available to construct areas for inmate work programs: <proviso><i>Provided</i>, That labor of United States prisoners may be used for work performed under this appropriation</proviso>: <proviso><i>Provided further</i>, That not to exceed 10 percent of the funds appropriated to “Buildings and Facilities” in this Act or any other Act may be transferred to “Salaries and Expenses”, Federal Prison System, upon notification by the Attorney General to the Committees on Appropriations of the House of Representatives and the Senate in compliance with provisions set forth in section 605 of this Act</proviso>: <proviso><i>Provided further</i>, That, of the total amount appropriated, not to exceed $2,300,000 shall be available for the renovation and construction of United States Marshals Service prisoner-holding facilities</proviso>.</content> </appropriations> <appropriations level="small"> <heading>federal prison industries, incorporated</heading> <content>The Federal Prison Industries, Incorporated, is hereby authorized to make such expenditures, within the limits of funds and borrowing authority available, and in accord with the law, and to make such contracts and commitments, without regard to fiscal year limitations as provided by section 9104 of title 31, United States Code, as may be necessary in carrying out the program set forth in the budget for the current fiscal year for such corporation, including purchase of (not to exceed five for replacement only) and hire of passenger motor vehicles.</content> </appropriations> <page identifier="/us/stat/111/2451">111 STAT. 2451</page> <appropriations level="small"> <heading>limitation on administrative expenses, federal prison industries, incorporated</heading> <content>Not to exceed $3,266,000 of the funds of the corporation shall be available for its administrative expenses, and for services as authorized by 5 U.S.C. 3109, to be computed on an accrual basis to be determined in accordance with the corporation’s current prescribed accounting system, and such amounts shall be exclusive of depreciation, payment of claims, and expenditures which the said accounting system requires to be capitalized or charged to cost of commodities acquired or produced, including selling and shipping expenses, and expenses in connection with acquisition, construction, operation, maintenance, improvement, protection, or disposition of facilities and other property belonging to the corporation or in which it has an interest.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Office of Justice Programs</heading> <appropriations level="small"> <heading>justice assistance</heading> <content>For grants, contracts, cooperative agreements, and other assistance authorized by title I of the Omnibus Crime Control and Safe Streets Act of 1968, as amended, and the Missing Children’s Assistance Act, as amended, including salaries and expenses in connection therewith, and with the Victims of Crime Act of 1984, as amended, and sections 819 and 821 of the Antiterrorism and Effective Death Penalty Act of 1996, $173,600,000, to remain available until expended, as authorized by section 1001 of title I of the Omnibus Crime Control and Safe Streets Act of 1968, as amended by Public Law 102–534 (106 Stat. 3524); of which $25,000,000 is for the National Sexual Offender Registry: <proviso><i>Provided</i>, That, of funds appropriated under this heading, such funds are available as may be necessary to carry out the orderly termination of the Ounce of Prevention Council</proviso>.</content> </appropriations> <appropriations level="small"> <heading>state and local law enforcement assistance</heading> <content>For grants, contracts, cooperative agreements, and other assistance authorized by part E of title I of the Omnibus Crime Control and Safe Streets Act of 1968, as amended, for State and Local Narcotics Control and Justice Assistance Improvements, notwithstanding the provisions of section 511 of said Act, $509,000,000, to remain available until expended, as authorized by section 1001 of title I of said Act, as amended by Public Law 102–534 (106 Stat. 3524), of which $46,500,000 shall be available to carry out the provisions of chapter A of subpart 2 of part E of title I of said Act, for discretionary grants under the Edward Byrne Memorial State and Local Law Enforcement Assistance Programs, including $2,097,000 which shall be available to the Executive Office of United States Attorneys to support the National District Attorneys Association’s participation in legal education training at the National Advocacy Center.</content> </appropriations> <page identifier="/us/stat/111/2452">111 STAT. 2452</page> <appropriations level="small"> <heading>violent crime reduction programs, state and local law enforcement assistance</heading> <content>For assistance (including amounts for administrative costs for management and administration, which amounts shall be transferred to and merged with the “Justice Assistance” account) authorized by the Violent Crime Control and Law Enforcement Act of 1994 (Public Law 103–322), as amended (“the 1994 Act”); the Omnibus Crime Control and Safe Streets Act of 1968, as amended (“the 1968 Act”); and the Victims of Child Abuse Act of 1990, as amended (“the 1990 Act”); $2,382,400,000, to remain available until expended, which shall be derived from the Violent Crime Reduction Trust Fund; of which $523,000,000 shall be for Local Law Enforcement Block Grants, pursuant to H.R. 728 as passed by the House of Representatives on February 14, 1995, except that for purposes of this Act, the Commonwealth of Puerto Rico shall be considered a “unit of local government” as well as a “State”, for the purposes set forth in subparagraphs (A), (B), (D), (F), and (I) of section 101(a)(2) of H.R. 728 and for establishing crime prevention programs involving cooperation between community residents and law enforcement personnel in order to control, detect, or investigate crime or the prosecution of criminals: <proviso><i>Provided</i>, That no funds provided under this heading may be used as matching funds for any other Federal grant program</proviso>: <proviso><i>Provided further</i>, That $20,000,000 of this amount shall be for Boys and Girls Clubs in public housing facilities and other areas in cooperation with State and local law enforcement</proviso>: <proviso><i>Provided further</i>, That funds may also be used to defray the costs of indemnification insurance for law enforcement officers</proviso>: <proviso><i>Provided further</i>, That for the purpose of eligibility for the Local Law Enforcement Block Grant Program in the State of Louisiana, parish sheriffs are to be considered the unit of local government under section 108 of H.R. 728; of which $45,000,000 shall be for grants to upgrade criminal records, as authorized by section 106(b) of the Brady Handgun Violence Prevention Act of 1993, as amended, and section 4(b) of the National Child Protection Act of 1993; of which $42,500,000 shall be available as authorized by section 1001 of title I of the 1968 Act, to carry out the provisions of subpart 1, part E of title I of the 1968 Act notwithstanding section 511 of said Act, for the Edward Byrne Memorial State and Local Law Enforcement Assistance Programs; of which $420,000,000 shall be for the State Criminal Alien Assistance Program, as authorized by section 242( i) of the Immigration and Nationality Act, as amended; of which $720,500,000 shall be for Violent Offender Incarceration and Truth in Sentencing Incentive Grants pursuant to subtitle A of title II of the 1994 Act, of which $165,000,000 shall be available for payments to States for incarceration of criminal aliens, of which $25,000,000 shall be available for the Cooperative Agreement Program, and of which $5,000,000 shall be reserved by the Attorney General for fiscal year 1998 under section 20109(a) of subtitle A of title II of the 1994 Act; of which $7,000,000 shall be for the Court Appointed Special Advocate Program, as authorized by section 218 of the 1990 Act; of which $2,000,000 shall be for Child Abuse Training Programs for Judicial Personnel and Practitioners, as authorized <page identifier="/us/stat/111/2453">111 STAT. 2453</page>by section 224 of the 1990 Act; of which $172,000,000 shall be for Grants to Combat Violence Against Women, to States, units of local government, and Indian tribal governments, as authorized by section 1001(a)(18) of the 1968 Act, including $12,000,000 which shall be used exclusively for the purpose of strengthening civil legal assistance programs for victims of domestic violence</proviso>: <proviso><i>Provided further</i>, That, of these funds, $7,000,000 shall be provided to the National Institute of Justice for research and evaluation of violence against women and $853,000 shall be provided to the Office of the United States Attorney for the District of Columbia for domestic violence programs in D.C. Superior Court; of which $59,000,000 shall be for Grants to Encourage Arrest Policies to States, units of local government, and Indian tribal governments, as authorized by section 1001(a)(19) of the 1968 Act; of which $25,000,000 shall be for Rural Domestic Violence and Child Abuse Enforcement Assistance Grants, as authorized by section 40295 of the 1994 Act; of which $2,000,000 shall be for training programs to assist probation and parole officers who work with released sex offenders, as authorized by section 40152(c) of the 1994 Act; of which $1,000,000 shall be for grants for televised testimony, as authorized by section 1001(a)(7) of the 1968 Act; of which $2,750,000 shall be for national stalker and domestic violence reduction, as authorized by section 40603 of the 1994 Act; of which $63,000,000 shall be for grants for residential substance abuse treatment for State prisoners, as authorized by section 1001(a)(17) of the 1968 Act; of which $12,500,000 shall be for grants to States and units of local government for projects to improve DNA analysis, as authorized by section 1001(a)(22) of the 1968 Act; of which $900,000 shall be for the Missing Alzheimer’s Disease Patient Alert Program, as authorized by section 240001(c) of the 1994 Act; of which $750,000 shall be for Motor Vehicle Theft Prevention Programs, as authorized by section 220002(h) of the 1994 Act; of which $30,000,000 shall be for Drug Courts, as authorized by title V of the 1994 Act; of which $1,000,000 shall be for Law Enforcement Family Support Programs, as authorized by section 1001(a)(21) of the 1968 Act; of which $2,500,000 shall be for public awareness programs addressing marketing scams aimed at senior citizens, as authorized by section 250005(3) of the 1994 Act; and of which $250,000,000 shall be for Juvenile Accountability Incentive Block Grants pursuant to title III of H.R. 3 as passed by the House of Representatives on May 8, 1997: Provided further, That notwithstanding the requirements of H.R. 3, a State, or unit of local government within such State, shall be eligible for a grant under this program if the Governor of the State certifies to the Attorney General, consistent with guidelines established by the Attorney General in consultation with Congress, that the State is actively considering, or will consider within one year from the date of such certification, legislation, policies, or practices which if enacted would qualify the State for a grant under section 1802 of H.R. 3: Provided further, That 3 percent shall be available to the Attorney General for research, evaluation, and demonstration consistent with this program and 2 percent shall be available to the Attorney General for training and technical assistance consistent with this program</proviso>: <proviso><i>Provided further</i>, That not less than 45 percent of any grant provided to a State or unit of local government shall be spent for the purposes set forth in paragraphs (3) through (9), and not less than 35 percent shall be spent for the purposes set forth in paragraphs (1), (2), and (10) of section 1801(b) of H.R. 3, unless the State or unit of local government certifies to the Attorney General or the State, whichever is appropriate, that the <page identifier="/us/stat/111/2454">111 STAT. 2454</page>interests of public safety and juvenile crime control would be better served by expending its grant for other purposes set forth under section 1801(b) of H.R. 3</proviso>: <proviso><i>Provided further,</i> That the Federal share limitation in section 1805(e) of H.R. 3 shall be 50 percent in relation to the costs of constructing a permanent juvenile corrections facility: Provided further, That prior to receiving a grant under this program, a unit of local government must establish a coordinated enforcement plan for reducing juvenile crime, developed by a juvenile crime enforcement coalition, such coalition consisting of individuals representing the police, sheriff, prosecutor, State or local probation services, juvenile court, schools, business, and religious affiliated, fraternal, non-profit, or social service organizations <sidenote><p class="indent0 firstIndent0 fontsize8">Records.</p></sidenote>involved in crime prevention</proviso>: <proviso><i>Provided further</i>, That the conditions of sections 1802(a)(3) and 1802(b)(1)(C) of H.R. 3 regarding juvenile adjudication records require a State or unit of local government to make available to the Federal Bureau of Investigation records of delinquency adjudications which are treated in a manner equivalent to adult records</proviso>: <proviso><i>Provided further</i>, That no State or unit of local government may receive a grant under this program unless such State or unit of local government has implemented, or will implement no later than January 1, 1999, a policy of controlled substance testing for appropriate categories of juveniles within the juvenile justice system and funds received under this program may be expended for such purpose</proviso>: <proviso><i>Provided further</i>, That the minimum allocation for each State under section 1803(a)(1)(A) of H.R. 3 shall be 0.5 percent</proviso>: <proviso><i>Provided further</i>, That the terms and conditions under this heading for juvenile accountability incentive block grants are effective for fiscal year 1998 only and upon the enactment of authorization legislation for juvenile accountability incentive block grants, funding provided in this Act shall from that date be subject to the provisions of that legislation and any provisions in this Act that are inconsistent with that legislation shall no longer have effect</proviso>: <proviso><i>Provided further</i>, That funds made available in fiscal year 1998 under subpart 1 of part E of title I of the 1968 Act may be obligated for programs to assist States in the litigation processing of death penalty Federal habeas corpus petitions and for drug testing initiatives</proviso>: <proviso><i>Provided further</i>, That if a unit of local government uses any of the funds made available under this title to increase the number of law enforcement officers, the unit of local government will achieve a net gain in the number of law enforcement officers who perform nonadministrative public safety service</proviso>.</content> </appropriations> <appropriations level="small"> <heading>weed and seed program fund</heading> <content>For necessary expenses, including salaries and related expenses of the Executive Office for Weed and Seed, to implement “Weed and Seed” program activities, $33,500,000, for intergovernmental agreements, including grants, cooperative agreements, and contracts, with State and local law enforcement agencies engaged in the investigation and prosecution of violent crimes and drug offenses in “Weed and Seed.” designated communities, and for either reimbursements or transfers to appropriation accounts of the Department of Justice and other Federal agencies which shall be specified by the Attorney General to execute the “Weed and Seed” program strategy: <proviso><i>Provided</i>, That funds designated by Congress through language for other Department of Justice appropriation accounts for “Weed and Seed” program activities shall be managed <page identifier="/us/stat/111/2455">111 STAT. 2455</page>and executed by the Attorney General through the Executive Office for Weed and Seed</proviso>: <proviso><i>Provided further</i>, That the Attorney General may direct the use of other Department of Justice funds and personnel in support of “Weed and Seed” program activities only after the Attorney General notifies the Committees on Appropriations of the House of Representatives and the Senate in accordance with section 605 of this Act</proviso>.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Community Oriented Policing Services</heading> <appropriations level="small"> <heading>violent crime reduction programs</heading> <content><p class="indent0 firstIndent1 fontsize10">For activities authorized by the Violent Crime Control and Law Enforcement Act of 1994, Public Law 103–322 (“the 1994 Act”) (including administrative costs), $1,400,000,000, to remain available until expended, which shall be derived from the Violent Crime Reduction Trust Fund, for Public Safety and Community Policing Grants pursuant to title I of the 1994 Act: <proviso><i>Provided,</i> That not to exceed 186 permanent positions and 186 full-time equivalent workyears and $20,553,000 shall be expended for program management and administration: Provided further, That of the unobligated balances available in this program, $103,000,000 shall be used for innovative community policing programs, of which $38,000,000 shall be used for a law enforcement technology program, $1,000,000 shall be used for police recruitment programs authorized under subtitle H of title III of the 1994 Act, $34,000,000 shall be used for policing initiatives to combat methamphetamine production and trafficking, $12,500,000 shall be used for the Community Policing to Combat Domestic Violence Program pursuant to section 1701(d) of part Q of the Omnibus Crime Control and Safe Streets Act of 1968, as amended, and $17,500,000 shall be used for other innovative community policing programs, such as programs to improve the safety of elementary and secondary school children, reduce crime on or near elementary and secondary school grounds, and enhance policing initiatives in drug “hot spots”.</proviso></p> <p class="indent0 firstIndent1 fontsize10">In addition, for programs of Police Corps education, training and service as set forth in sections 200101–200113 of the Violent Crime Control and Law Enforcement Act of 1994 (Public Law 103–322), $30,000,000, to remain available until expended, which shall be derived from the Violent Crime Reduction Trust Fund.</p></content> </appropriations> <appropriations level="small"> <heading>juvenile justice programs</heading> <content><p class="indent0 firstIndent1 fontsize10">For grants, contracts, cooperative agreements, and other assistance authorized by the Juvenile Justice and Delinquency Prevention Act of 1974, as amended (“the Act”), including salaries and expenses in connection therewith to be transferred to and merged with the appropriations for Justice Assistance, $201,672,000, to remain available until expended, as authorized by section 299 of part I of title II and section 506 of title V of the Act, as amended by Public Law 102–586, of which: (1) notwithstanding any other provision of law, $5,922,000 shall be available for expenses authorized by part A of title II of the Act, $96,500,000 shall be available for expenses authorized by part B of title II of the Act, and $45,250,000 shall be available for expenses authorized by part C of title II of the Act: <proviso><i>Provided</i>, That $26,500,000 of the amounts provided for part B of title II of the Act, as amended, is for the purpose of providing additional formula grants under part B <page identifier="/us/stat/111/2456">111 STAT. 2456</page>to States that provide assurances to the Administrator that the State has in effect (or will have in effect no later than one year after date of application) policies and programs, that ensure that juveniles are subject to accountability-based sanctions for every act for which they are adjudicated delinquent; (2) $12,000,000 shall be available for expenses authorized by sections 281 and 282 of part D of title II of the Act for prevention and treatment programs relating to juvenile gangs; (3) $10,000,000 shall be available for expenses authorized by section 285 of part E of title II of the Act; (4) $12,000,000 shall be available for expenses authorized by part G of title II of the Act for juvenile mentoring programs; and (5) $20,000,000 shall be available for expenses authorized by title V of the Act for incentive grants for local delinquency prevention programs</proviso>: <proviso><i>Provided further</i>, That upon the enactment of reauthorization legislation for Juvenile Justice Programs under the Juvenile Justice and Delinquency Prevention Act of 1974, as amended, funding provisions in this Act shall from that date be subject to the provisions of that legislation and any provisions in this Act that are inconsistent with that legislation shall no longer have effect</proviso>.</p> <p class="indent0 firstIndent1 fontsize10">In addition, for grants, contracts, cooperative agreements, and other assistance, $5,000,000 to remain available until expended, for developing, testing, and demonstrating programs designed to reduce drug use among juveniles.</p> <p class="indent0 firstIndent1 fontsize10">In addition, $25,000,000 shall be available for grants of $360,000 to each State and $6,640,000 shall be available for discretionary grants to States, for programs and activities to enforce State laws prohibiting the sale of alcoholic beverages to minors or the purchase or consumption of alcoholic beverages by minors, prevention and reduction of consumption of alcoholic beverages by minors, and for technical assistance and training.</p> <p class="indent0 firstIndent1 fontsize10">In addition, for grants, contracts, cooperative agreements, and other assistance authorized by the Victims of Child Abuse Act of 1990, as amended, $7,000,000, to remain available until expended, as authorized by section 214B of the Act.</p></content> </appropriations> <appropriations level="small"> <heading>public safety officers benefits</heading> <content>To remain available until expended, for payments authorized by part L of title I of the Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3796), as amended, such sums as are necessary, as authorized by section 6093 of Public Law 100–690 (102 Stat. 4339–4340); and $2,000,000 for the Federal Law Enforcement Education Assistance Program, as authorized by section 1212 of said Act.</content> </appropriations> </appropriations> <level> <heading><inline class="smallCaps">General Provisions—Department of Justice</inline></heading> <section><num value="101"><inline class="smallCaps">Sec.</inline> 101. </num><content>In addition to amounts otherwise made available in this title for official reception and representation expenses, a total of not to exceed $45,000 from funds appropriated to the Department of Justice in this title shall be available to the Attorney General for official reception and representation expenses in accordance with distributions, procedures, and regulations established by the Attorney General.</content></section> <section><num value="102"><inline class="smallCaps">Sec.</inline> 102. </num><content>Authorities contained in the Department of Justice Appropriation Authorization Act, Fiscal Year 1980 (Public Law 96–132; 93 Stat. 1040 (1979)), as amended, shall remain in effect <page identifier="/us/stat/111/2457">111 STAT. 2457</page>until the termination date of this Act or until the effective date of a Department of Justice Appropriation Authorization Act, whichever is earlier.</content></section> <section><num value="103"><inline class="smallCaps">Sec.</inline> 103. </num><content>None of the funds appropriated by this title <sidenote><p class="indent0 firstIndent0 fontsize8">Abortion.</p></sidenote>shall be available to pay for an abortion, except where the life of the mother would be endangered if the fetus were carried to term, or in the case of rape: <proviso><i>Provided,</i> That should this prohibition be declared unconstitutional by a court of competent jurisdiction, this section shall be null and void</proviso>.</content></section> <section><num value="104"><inline class="smallCaps">Sec.</inline> 104. </num><content>None of the funds appropriated under this title shall <sidenote><p class="indent0 firstIndent0 fontsize8">Abortion.</p></sidenote>be used to require any person to perform, or facilitate in any way the performance of, any abortion.</content></section> <section><num value="105"><inline class="smallCaps">Sec.</inline> 105. </num><content>Nothing in the preceding section shall remove the obligation of the Director of the Bureau of Prisons to provide escort services necessary for a female inmate to receive such service outside the Federal facility: <proviso><i>Provided,</i> That nothing in this section in any way diminishes the effect of section 104 intended to address the philosophical beliefs of individual employees of the Bureau of Prisons</proviso>.</content></section> <section><num value="106"><inline class="smallCaps">Sec.</inline> 106. </num><content>Notwithstanding any other provision of law, not <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t18/s3059">18 USC 3059</ref> note.</p></sidenote>to exceed $10,000,000 of the funds made available in this Act may be used to establish and publicize a program under which publicly advertised, extraordinary rewards may be paid, which shall not be subject to spending limitations contained in sections 3059 and 3072 of title 18, United States Code: <proviso><i>Provided</i>, That any reward of $100,000 or more, up to a maximum of $2,000,000, may not be made without the personal approval of the President or the Attorney General and such approval may not be delegated</proviso>.</content></section> <section><num value="107"><inline class="smallCaps">Sec.</inline> 107. </num><content>Not to exceed 5 percent of any appropriation made available for the current fiscal year for the Department of Justice in this Act, including those derived from the Violent Crime Reduction Trust Fund, may be transferred between such appropriations, but no such appropriation, except as otherwise specifically provided, shall be increased by more than 10 percent by any such transfers: <proviso><i>Provided,</i> That any transfer pursuant to this section shall be treated as a reprogramming of funds under section 605 of this Act and shall not be available for obligation except in compliance with the procedures set forth in that section</proviso>.</content></section> <section><num value="108"><inline class="smallCaps">Sec.</inline> 108. </num><content>Section 524(c)(8)(E) of title 28, United States Code, is amended by striking “<quotedText>1996</quotedText>” and inserting “<quotedText>1997 and thereafter</quotedText>”.</content></section> <section><num value="109"><inline class="smallCaps">Sec.</inline> 109. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Section 1402(d) of the Victims of Crime Act of 1984 (42 U.S.C. 10601(d)), is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking paragraph (1); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in paragraph (2), by striking “<quotedText>the next</quotedText>” and inserting “<quotedText>The first</quotedText>?.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Any unobligated sums hitherto available to the judicial <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s10601">42 USC 10601</ref> note.</p></sidenote>branch pursuant to the paragraph repealed by subsection (a) shall be deemed to be deposits into the Crime Victims Fund as of the effective date hereof and may be used by the Director of the Office for Victims of Crime to improve services for the benefit of crime victims, including the processing and tracking of criminal monetary penalties and related litigation activities, in the Federal criminal justice system.</content></subsection></section> <section><num value="110"><inline class="smallCaps">Sec.</inline> 110. </num><chapeau>The Immigration and Nationality Act of 1952, as amended, is further amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking entirely section 286(s);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>in section 286(r) by—</chapeau><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1356">8 USC 1356</ref>.</p></sidenote> <page identifier="/us/stat/111/2458">111 STAT. 2458</page> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>adding “, and amount described in section 245(i)(3)(b)” after “recovered by the Department of Justice” in paragraph (2);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>replacing “Immigration and Naturalization Service” with “Attorney General” in paragraph (3); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>striking paragraph (4), and replacing it with, “The amounts required to be refunded from the Fund for fiscal year 1998 and thereafter shall be refunded in accordance with estimates made in the budget request of the President for those fiscal years. Any proposed changes in the amounts designated in such budget requests shall only be made after Congressional reprogramming notification in accordance with the reprogramming guidelines for the applicable fiscal year.”; and</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>in section 245(i)(3)(B), by replacing “Immigration Detention <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1255">8 USC 1255</ref>.</p></sidenote>Account established under section 286(s)” with “Breached Bond/Detention Fund established under section 286(r)”.</content></paragraph></section> <section><num value="111"><inline class="smallCaps">Sec.</inline> 111. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Limitation on Eligibility Under Section</inline> 245(i).—</heading><content>Section 245(i)(1) of the Immigration and Nationality Act (8 U.S.C. 1255(i)(1)) is amended by striking “<quotedText>(i)(1)</quotedText>” through “The Attorney General” and inserting the following: <quotedContent><subsection class="indent0 fontsize10"><num value="i">“(i)</num><paragraph class="inline"><num value="1">(1) </num><chapeau>Notwithstanding the provisions of subsections (a) and (c) of this section, an alien physically present in the United States—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><chapeau>who—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>entered the United States without inspection; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>is within one of the classes enumerated in subsection (c) of this section; and</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><chapeau>who is the beneficiary (including a spouse or child of the principal alien, if eligible to receive a visa under section 203(d)) of—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>a petition for classification under section 204 that was filed with the Attorney General on or before January 14, 1998; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>an application for a labor certification under section 212(a)(5)(A) that was filed pursuant to the regulations of the Secretary of Labor on or before such date;</content></clause></subparagraph> <continuation>may apply to the Attorney General for the adjustment of his or her status to that of an alien lawfully admitted for permanent residence. The Attorney General”.</continuation></paragraph></subsection></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Repeal of Sunset for Section</inline> 245(i).—</heading><content>Section 506(c) of the Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1995 (Public Law 103–317<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1182">8 USC 1182</ref> note.</p> <p class="indent0 firstIndent0 fontsize8">Effective dates.</p> <p class="indent0 firstIndent0 fontsize8">Termination date.</p> </sidenote>; 108 Stat. 1766) is amended to read as follows: <quotedContent><subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>The amendment made by subsection (a) shall take effect on October 1, 1994, and shall cease to have effect on October 1, 1997. The amendment made by subsection (b) shall take effect on October 1, 1994.”.</content></subsection></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Inapplicability of Certain Provisions of Section 245(c) for Certain Employment-Based Immigrants</inline>.—</heading><chapeau>Section 245 of the Immigration and Nationality Act (8 U.S.C. 1255) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subsection (c)(2), by inserting “<quotedText>subject to subsection (k),</quotedText>” after “(2)”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following: <quotedContent><subsection class="indent0 fontsize10"><num value="k">“(k) </num><chapeau>An alien who is eligible to receive an immigrant visa under paragraph (1), (2), or (3) of section 203(b) (or, in the case of an alien who is an immigrant described in section 101(a)(27)(C), <page identifier="/us/stat/111/2459">111 STAT. 2459</page>under section 203(b)(4)) may adjust status pursuant to subsection (a) and notwithstanding subsection (c)(2), (c)(7), and (c)(8), if—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>the alien, on the date of filing an application for adjustment of status, is present in the United States pursuant to a lawful admission;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><chapeau>the alien, subsequent to such lawful admission has not, for an aggregate period exceeding 180 days—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>failed to maintain, continuously, a lawful status;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>engaged in unauthorized employment; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>otherwise violated the terms and conditions of the alien’s admission.”.</content></subparagraph></paragraph></subsection></quotedContent></content></paragraph></subsection></section> <section><num value="112"><inline class="smallCaps">Sec.</inline> 112. </num><subsection class="inline"><num value="a">(a) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Philippine Army, Scouts, and Guerilla Veterans of World War II Naturalization Act of 1997.</p> <p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1101">8 USC 1101</ref> note.</p> </sidenote><heading><inline class="smallCaps">Short Title</inline>.—</heading><content>This section may be cited as the “Philippine Army, Scouts, and Guerilla Veterans of World War II Naturalization Act of 1997”.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 405 of the Immigration and Nationality Act of 1990 (8 U.S.C. 1440 note) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking subparagraph (B) of subsection (a)(1) and inserting the following: <quotedContent><subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><chapeau>who—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>is listed on the final roster prepared by the Recovered Personnel Division of the United States Army of those who served honorably in an active duty status within the Philippine Army during the World War II occupation and liberation of the Philippines,</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>is listed on the final roster prepared by the Guerilla Affairs Division of the United States Army of those who received recognition as having served honorably in an active duty status within a recognized guerilla unit during the World War II occupation and liberation of the Philippines, or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><content>served honorably in an active duty status within the Philippine Scouts or within any other component of the United States Armed Forces in the Far East (other than a component described in clause (i) or (ii)) at any time during the period beginning September 1, 1939, and ending December 31, 1946:”;</content></clause></subparagraph></quotedContent></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by adding at the end of subsection (a) the following new paragraph: <quotedContent><paragraph class="indent1 fontsize10"><num value="3">“(3)</num><subparagraph class="inline"><num value="A">(A) </num><chapeau>For purposes of the second sentence of section 329(a) and section 329(b)(3) of the Immigration and Nationality Act, the executive department under which a person served shall be—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>in the case of an applicant claiming to have served in the Philippine Army, the United States Department of the Army;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>in the case of an applicant claiming to have served in a recognized guerilla unit, the United States Department of the Army; or</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><content>in the case of an applicant claiming to have served in the Philippine Scouts or any other component of the United States Armed Forces in the Far East (other than a component described in clause (i) or (ii)) at any time during the period beginning September 1, 1939, and ending December 31, 1946, the United States executive department (or successor thereto) that exercised supervision over such component.</content></clause></subparagraph> <page identifier="/us/stat/111/2460">111 STAT. 2460</page> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><content>An executive department specified in subparagraph (A) may not make a determination under the second sentence of section 329(a) with respect to the service or separation from service of a person described in paragraph (1) except pursuant to a request from the Service.”</content></subparagraph></paragraph></quotedContent>; and</content></paragraph> <subparagraph class="indent2 fontsize10"><num value="3">(3) </num><content>by adding at the end the following new subsection: <quotedContent><subsection class="indent0 fontsize10"><num value="d">“(d) </num><heading><inline class="smallCaps">Implementation</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>Notwithstanding any other provision of law, for purposes of the naturalization of natives of the Philippines under this section—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>the processing of applications for naturalization, filed in accordance with the provisions of this section, including necessary interviews, shall be conducted in the Philippines by employees of the Service designated pursuant to section 335(b) of the Immigration and Nationality Act; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>oaths of allegiance for applications for naturalization under this section shall be administered in the Philippines by employees of the Service designated pursuant to section 335(b) of that Act.</content></subparagraph></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>Notwithstanding paragraph (1), applications for naturalization, including necessary interviews, may continue to be processed, and oaths of allegiance may continue to be taken in the United States.”</content></paragraph></subsection></quotedContent></content></subparagraph></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Repeal</inline>.—</heading><content>Section 113 of the Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1993 (8 U.S.C. 1440 note), is repealed.</content></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1440">8 USC 1440</ref> note.</p></sidenote><heading><inline class="smallCaps">Effective Date; Termination Date.—</inline></heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Application to pending applications</inline>.—</heading><content>The amendments made by subsection (b) shall apply to applications filed before February 3, 1995.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Termination date</inline>.—</heading><content>The authority provided by the amendments made by subsection (b) shall expire February 3, 2001.</content></paragraph></subsection></section> <section><num value="113"><inline class="smallCaps">Sec.</inline> 113. </num><content>Section 101(a)(27)(J) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(27)(J)) is amended to read as follows: <quotedContent><subparagraph class="indent2 fontsize10"><num value="J">“(J) </num><chapeau>an immigrant who is present in the United States—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>who has been declared dependent on a juvenile court located in the United States or whom such a court has legally committed to, or placed under the custody of, an agency or department of a State and who has been deemed eligible by that court for longterm foster care due to abuse, neglect, or abandonment;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>for whom it has been determined in administrative or judicial proceedings that it would not be in the alien’s best interest to be returned to the alien’s or parent’s previous country of nationality or country of last habitual residence; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><chapeau>in whose case the Attorney General expressly consents to the dependency order serving as a precondition to the grant of special immigrant juvenile status; except that—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I) </num><content>no juvenile court has jurisdiction to determine the custody status or placement of an alien in the actual or constructive custody of the Attorney General unless the Attorney General specifically consents to such jurisdiction; and</content></subclause> <page identifier="/us/stat/111/2461">111 STAT. 2461</page> <subclause class="indent4 fontsize10"><num value="II">“(II) </num><content>no natural parent or prior adoptive parent of any alien provided special immigrant status under this subparagraph shall thereafter, by virtue of such parentage, be accorded any right, privilege, or status under this Act; or”.</content></subclause></clause></subparagraph></quotedContent></content></section> <section><num value="114"><inline class="smallCaps">Sec.</inline> 114. </num><content>Not to exceed $200,000 of funds appropriated under section 1304 of title 31, United States Code, shall be available for payment pursuant to the Hearing Officer’s Report in United States Court of Federal Claims No. 93–645X (June 3, 1996) (see 35 Fed. Cl. 99 (March 7, 1996)).</content></section> <section><num value="115"><inline class="smallCaps">Sec.</inline> 115. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Standards for Sex Offender Registration Programs.</inline>—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Section 170101(a) of the Violent Crime Control and Law Enforcement Act of 1994 (42 U.S.C. 14071(a)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><chapeau>in paragraph (1)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>in subparagraph (A), by striking “<quotedText>with a designated State law enforcement agency</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>in subparagraph (B), by striking “<content>with a designated State law enforcement agency</content>”;</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking paragraph (2) and inserting the following: <quotedContent> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><heading><inline class="smallCaps">Determination of sexually violent predator status; waiver; alternative measures</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><heading><inline class="smallCaps">In general.—</inline></heading><content>A determination of whether a person is a sexually violent predator for purposes of this section shall be made by a court after considering the recommendation of a board composed of experts in the behavior and treatment of sex offenders, victims’ rights advocates, and representatives of law enforcement agencies.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><heading><inline class="smallCaps">Waiver.</inline>—</heading><content>The Attorney General may waive the requirements of subparagraph (A) if the Attorney General determines that the State has established alternative procedures or legal standards for designating a person as a sexually violent predator.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><heading><inline class="smallCaps">Alternative measures</inline>.—</heading><content>The Attorney General may also approve alternative measures of comparable or greater effectiveness in protecting the public from unusually dangerous or recidivistic sexual offenders in lieu of the specific measures set forth in this section regarding sexually violent predators.”;</content></subparagraph></paragraph></quotedContent></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><chapeau>in paragraph (3)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>in subparagraph (A), by striking “<quotedText>that consists of—</quotedText>” and inserting “<quotedText>in a range of offenses specified by State law which is comparable to or which exceeds the following range of offenses:</quotedText>”;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>in subparagraph (B), by striking “<quotedText>that consists of</quotedText>” and inserting “<quotedText>in a range of offenses specified by State law which is comparable to or which exceeds the range of offenses encompassed by</quotedText>”; and</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>by adding at the end the following: <quotedContent><subparagraph class="indent2 fontsize10"><num value="F">“(F) </num><content>The term ‘employed, carries on a vocation’ includes employment that is full-time or part-time for a period of time exceeding 14 days or for an aggregate period of time exceeding 30 days during any calendar year, whether financially compensated, volunteered, or for the purpose of government or educational benefit.</content></subparagraph> <page identifier="/us/stat/111/2462">111 STAT. 2462</page> <subparagraph class="indent2 fontsize10"><num value="G">“(G) </num><content>The term ‘student’ means a person who is enrolled on a full-time or part-time basis, in any public or private educational institution, including any secondary school, trade, or professional institution, or institution of higher education.”.</content></subparagraph></quotedContent></content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Requirements upon release, parole, supervised release, or probation</inline>.—</heading><chapeau>Section 170101(b) of the Violent Crime Control and Law Enforcement Act of 1994 (42 U.S.C. 14071(b)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><chapeau>in paragraph (1)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>by striking the paragraph designation and heading and inserting the following: <quotedContent><paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">Duties of responsible officials.—”;</inline></heading></paragraph></quotedContent></content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><chapeau>in subparagraph (A)—</chapeau> <subclause class="indent4 fontsize10"><num value="I">(I) </num><content>in the matter preceding clause (i), by striking “<quotedText>or in the case of probation, the court</quotedText>” and inserting “<quotedText>the court, or another responsible officer or official</quotedText>”;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">(II) </num><content>in clause (ii), by striking “<quotedText>give</quotedText>” and all that follows before the semicolon and inserting “<quotedText>report the change of address as provided by State law</quotedText>”; and</content></subclause> <subclause class="indent4 fontsize10"><num value="III">(III) </num><content>in clause (iii), by striking “<quotedText>shall register</quotedText>” and all that follows before the semicolon and inserting “<quotedText>shall report the change of address as provided by State law and comply with any registration requirement in the new State of residence, and inform the person that the person must also register in a State where the person is employed, carries on a vocation, or is a student</quotedText>”; anD</content></subclause></clause> <clause class="indent3 fontsize10"><num value="iii">(iii) </num><content>in subparagraph (B), by striking “<quotedText>or the court</quotedText>” and inserting “<quotedText>, the court, or another responsible officer or official</quotedText>”;</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking paragraph (2) and inserting the following: <quotedContent><paragraph class="indent1 fontsize10"><num value="2">“(2) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote><heading><inline class="smallCaps">Transfer of information to state and fbi; participation in national sex offender registry</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><heading><inline class="smallCaps">State reporting.</inline>—</heading><content>State procedures shall ensure that the registration information is promptly made available to a law enforcement agency having jurisdiction where the person expects to reside and entered into the appropriate State records or data system. State procedures shall also ensure that conviction data and fingerprints for persons required to register are promptly transmitted to the Federal Bureau of Investigation.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><heading><inline class="smallCaps">National reporting</inline>.—</heading><content>A State shall participate in the national database established under section 170102(b) in accordance with guidelines issued by the Attorney General, including transmission of current address information and other information on registrants to the extent provided by the guidelines.”;</content></subparagraph></paragraph></quotedContent></content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><chapeau>in paragraph (3)(A)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>in the matter preceding clause (i), by striking “<quotedText>on each</quotedText>” and all that follows through “applies:” and inserting the following: “State procedures shall provide for verification of address at least annually.”; and</content></clause> <page identifier="/us/stat/111/2463">111 STAT. 2463</page> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>by striking clauses (i) through (v);</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>in paragraph (4), by striking “<quotedText>section reported</quotedText>” and all that follows before the period at the end and inserting the following: “section shall be reported by the person in the manner provided by State law. State procedures shall ensure that the updated address information is promptly made available to a law enforcement agency having jurisdiction where the person will reside and entered into the appropriate State records or data system”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E) </num><content>in paragraph (5), by striking “<quotedText>shall register</quotedText>” and all that follows before the period at the end and inserting “<quotedText>and who moves to another State, shall report the change of address to the responsible agency in the State the person is leaving, and shall comply with any registration requirement in the new State of residence. The procedures of the State the person is leaving shall ensure that notice is provided promptly to an agency responsible for registration in the new State, if that State requires registration</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F) </num><content>by adding at the end the following: <quotedContent><paragraph class="indent1 fontsize10"><num value="7">“(7) </num><heading><inline class="smallCaps">Registration of out-of-state offenders, federal offenders, persons sentenced by courts martial, and offenders crossing state borders.</inline>—</heading><chapeau>As provided in guidelines issued by the Attorney General, each State shall include in its registration program residents who were convicted in another State and shall ensure that procedures are in place to accept registration information from—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>residents who were convicted in another State, convicted of a Federal offense, or sentenced by a court martial; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>nonresident offenders who have crossed into another State in order to work or attend school.”.</content></subparagraph></paragraph></quotedContent></content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Registration of offender crossing state border</inline>.—</heading><content>Section 170101 of the Violent Crime Control and Law Enforcement Act of 1994 (42 U.S.C. 14071) is amended by redesignating subsections (c) through (f) as (d) through (g), respectively, and inserting after subsection (b) the following: <quotedContent><subsection class="indent0 fontsize10"><num value="c">“(c) </num><heading><inline class="smallCaps">Registration of Offender Crossing State Border</inline>.—</heading><content>Any person who is required under this section to register in the State in which such person resides shall also register in any State in which the person is employed, carries on a vocation, or is a student.”.</content></subsection></quotedContent></content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><heading><inline class="smallCaps">Release of information</inline>.—</heading><content>Section 170101(e)(2) of the Violent Crime Control and Law Enforcement Act of 1994 (42 U.S.C. 14071(e)(2)), as redesignated by subsection (c) of this section, is amended by striking “<quotedText>The designated</quotedText>” and all that follows through “State agency” and inserting “<quotedText>The State or any agency authorized by the State</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><heading><inline class="smallCaps">Immunity for good faith conduct</inline>.—</heading><content>Section 170101(f) of the Violent Crime Control and Law Enforcement Act of 1994 (42 U.S.C. 14071(f)), as redesignated by subsection (c) of this section, is amended by striking “<quotedText>, and State officials</quotedText>” and inserting “<quotedText>and independent contractors acting at the direction of such agencies, and State officials</quotedText>”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><heading><inline class="smallCaps">FBI registration</inline>.—</heading><subparagraph class="inline"><num value="A">(A) </num><content>Section 170102(a)(2) of the Violent Crime Control and Law Enforcement Act of 1994 (42 U.S.C. 14072(a)(2)) is amended by striking “<quotedText>and ‘predatory’</quotedText>” <page identifier="/us/stat/111/2464">111 STAT. 2464</page>and inserting the following: “‘predatory’, ‘employed, or carries on a vocation’, and ‘student’”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><chapeau>Section 170102(a)(3) of the Violent Crime Control and Law Enforcement Act of 1994 (42 U.S.C. 14072(a)(3)) is amended—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>in subparagraph (A), by inserting “<quotedText>in a range of offenses specified by State law which is comparable to or exceeds that</quotedText>” before “described”;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>by amending subparagraph (B) to read as follows: <quotedContent><subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>participates in the national database established under subsection (b) of this section in conformity with guidelines issued by the Attorney General;”; and</content></subparagraph></quotedContent></content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii) </num><content>by amending subparagraph (C) to read as follows: <quotedContent><subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>provides for verification of address at least annually;”.</content></subparagraph></quotedContent></content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>Section 170102(i) of the Violent Crime Control and Law Enforcement Act of 1994 (42 U.S.C. 14072(i)) in the matter preceding paragraph (1), is amended by inserting “<quotedText>or pursuant to section 170101(b)(7)</quotedText>” after “subsection (g)”.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><heading><inline class="smallCaps">Pam lychner sexual offender tracking and identification act of 1996.</inline>—</heading><content>Section 10 of the Pam Lychner Sexual <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s14071">42 USC 14071</ref> note.</p></sidenote>Offender Tracking and Identification Act of 1996 is amended by inserting at the end the following: <quotedContent><subsection class="indent0 fontsize10"><num value="d">“(d) </num><heading><inline class="smallCaps">Effective Date.</inline>—</heading><content>States shall be allowed the time specified in subsection (b) to establish minimally sufficient sexual offender registration programs for purposes of the amendments made by section 2. Subsections (c) and (k) of section 170102 of the Violent Crime Control and Law Enforcement Act of 1994, and any requirement to issue related regulations, shall take effect at the conclusion of the time provided under this subsection for the establishment of minimally sufficient sexual offender registration programs.”.</content></subsection></quotedContent></content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><heading><inline class="smallCaps">Federal offenders and military personnel</inline>.—</heading><subparagraph class="inline"><num value="A">(A) </num><chapeau>Section 4042 of title 18, United States Code, is amended—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>in subsection (a)(5), by striking “<quotedText>subsection (b)</quotedText>” and inserting “<quotedText>subsections (b) and (c)</quotedText>”;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>in subsection (b), by striking paragraph (4);</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii) </num><content>by redesignating subsection (c) as subsection (d); and</content></clause> <clause class="indent3 fontsize10"><num value="iv">(iv) </num><content>by inserting after subsection (b) the following: <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><heading><inline class="smallCaps">Notice of Sex Offender Release</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>In the case of a person described in paragraph (4) who is released from prison or sentenced to probation, notice shall be provided to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>the chief law enforcement officer of the State and of the local jurisdiction in which the person will reside; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>a State or local agency responsible for the receipt or maintenance of sex offender registration information in the State or local jurisdiction in which the person will reside. The notice requirements under this subsection do not apply in relation to a person being protected under chapter 224.</content></subparagraph></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>Notice provided under paragraph (1) shall include the information described in subsection (b)(2), the place where the person will reside, and the information that the person shall be subject to a registration requirement as a sex offender. For a person who is released from the custody of the Bureau of Prisons whose expected place of residence following release is known to the Bureau of Prisons, notice shall be provided at least 5 days <page identifier="/us/stat/111/2465">111 STAT. 2465</page>prior to release by the Director of the Bureau of Prisons. For a person who is sentenced to probation, notice shall be provided promptly by the probation officer responsible for the supervision of the person, or in a manner specified by the Director of the Administrative Office of the United States Courts. Notice concerning a subsequent change of residence by a person described in paragraph (4) during any period of probation, supervised release, or parole shall also be provided to the agencies and officers specified in paragraph (1) by the probation officer responsible for the supervision of the person, or in a manner specified by the Director of the Administrative Office of the United States Courts.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">“(3) </num><content>The Director of the Bureau of Prisons shall inform a person described in paragraph (4) who is released from prison that the person shall be subject to a registration requirement as a sex offender in any State in which the person resides, is employed, carries on a vocation, or is a student (as such terms are defined for purposes of section 170101(a)(3) of the Violent Crime Control and Law Enforcement Act of 1994), and the same information shall be provided to a person described in paragraph (4) who is sentenced to probation by the probation officer responsible for supervision of the person or in a manner specified by the Director of the Administrative Office of the United States Courts.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="4">“(4) </num><chapeau>A person is described in this paragraph if the person was convicted of any of the following offenses (including such an offense prosecuted pursuant to section 1152 or 1153):</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>An offense under section 1201 involving a minor victim.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>An offense under chapter 109A.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>An offense under chapter 110.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>An offense under chapter 117.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E) </num><content>Any other offense designated by the Attorney General as a sexual offense for purposes of this subsection.</content></subparagraph></paragraph> <paragraph class="indent0 fontsize10"><num value="5">“(5) </num><content>The United States and its agencies, officers, and employees shall be immune from liability based on good faith conduct in carrying out this subsection and subsection (b).”.</content></paragraph></subsection></quotedContent></content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B)</num><clause class="inline"><num value="i">(i) </num><content>Section 3563(a) of title 18, United States Code, is amended by striking the matter at the end of paragraph (7) beginning with “The results of a drug test” and all that follows through the end of such paragraph and inserting that matter at the end of section 3563.</content></clause> <clause class="indent0 fontsize10"><num value="ii">(ii) </num><chapeau>The matter inserted by subparagraph (A) at the end of section 3563 is amended—</chapeau> <subclause class="indent4 fontsize10"><num value="I">(I) </num><content>by striking “<quotedText>The results of a drug test</quotedText>” and inserting the following: <quotedContent><subsection class="indent0 fontsize10"><num value="e">“(e) </num><heading><inline class="smallCaps">Results of Drug Testing</inline>.—</heading><content>The results of a drug test”; and</content></subsection></quotedContent></content></subclause> <subclause class="indent4 fontsize10"><num value="II">(II) </num><content>by striking “<quotedText>paragraph (4)</quotedText>” each place it appears and inserting “<quotedText>subsection (a)(5)</quotedText>”.</content></subclause></clause> <clause class="indent0 fontsize10"><num value="iii">(iii) </num><chapeau>Section 3563(a) of title 18, United States Code, is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="I">(I) </num><content>so that paragraphs (6) and (7) appear in numerical order immediately after paragraph (5);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="II">(II) </num><content>by striking “<quotedText>and</quotedText>” at the end of paragraph (6);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="III">(III) </num><content>in paragraph (7), by striking “<quotedText>assessments.</quotedText>” and inserting “<quotedText>assessments; and</quotedText>”; and</content></subparagraph> <subclause class="indent4 fontsize10"><num value="IV">(IV) </num><content>by inserting immediately after paragraph (7) (as moved by clause (i)) the following new paragraph: <page identifier="/us/stat/111/2466">111 STAT. 2466</page> <quotedContent><paragraph class="indent1 fontsize10"><num value="8">“(8) </num><content>for a person described in section 4042(c)(4), that the person report the address where the person will reside and any subsequent change of residence to the probation officer responsible for supervision, and that the person register in any State where the person resides, is employed, carries on a vocation, or is a student (as such terms are defined under section 170101(a)(3) of the Violent Crime Control and Law Enforcement Act of 1994).”.</content></paragraph></quotedContent></content></subclause></clause> <clause class="indent3 fontsize10"><num value="iv">(iv) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Courts.</p></sidenote><content>Section 3583(d) of title 18, United States Code, is amended by inserting after the second sentence the following: “The court shall order, as an explicit condition of supervised release for a person described in section 4042(c)(4), that the person report the address where the person will reside and any subsequent change of residence to the probation officer responsible for supervision, and that the person register in any State where the person resides, is employed, carries on a vocation, or is a student (as such terms are defined under section 170101(a)(3) of the Violent Crime Control and Law Enforcement Act of 1994).”.</content></clause> <clause class="indent3 fontsize10"><num value="v">(v) </num><content>Section 4209(a) of title 18, United States Code, insofar as such section remains in effect with respect to certain individuals, is amended by inserting after the first sentence the following: “In every case, the Commission shall impose as a condition of parole for a person described in section 4042(c)(4), that the parolee report the address where the parolee will reside and any subsequent change of residence to the probation officer responsible for supervision, and that the parolee register in any State where the parolee resides, is employed, carries on a vocation, or is a student (as such terms are defined under section 170101(a)(3) of the Violent Crime Control and Law Enforcement Act of 1994).”.</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C)</num><clause class="inline"><num value="i">(i) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s951">10 USC 951</ref> note.</p></sidenote><content>The Secretary of Defense shall specify categories of conduct punishable under the Uniform Code of Military Justice which encompass a range of conduct comparable to that described in section 170101(a)(3)(A) and (B) of the Violent Crime Control and Law Enforcement Act of 1994 (42 U.S.C. 14071(a)(3)(A) and (B)), and such other conduct as the Secretary deems appropriate for inclusion for purposes of this subparagraph.</content></clause> <clause class="indent0 fontsize10"><num value="ii">(ii) </num><chapeau>In relation to persons sentenced by a court martial for conduct in the categories specified under clause (i), the Secretary shall prescribe procedures and implement a system to—</chapeau> <subclause class="indent4 fontsize10"><num value="I">(I) </num><content>provide notice concerning the release from confinement or sentencing of such persons;</content></subclause> <subclause class="indent4 fontsize10"><num value="II">(II) </num><content>inform such persons concerning registration obligations; and</content></subclause> <subclause class="indent4 fontsize10"><num value="III">(III) </num><content>track and ensure compliance with registration requirements by such persons during any period of parole, probation, or other conditional release or supervision related to the offense.</content></subclause></clause> <clause class="indent0 fontsize10"><num value="iii">(iii) </num><content>The procedures and requirements established by the Secretary under this subparagraph shall, to the maximum extent practicable, be consistent with those specified for Federal offenders under the amendments made by subparagraphs (A) and (B).</content></clause> <page identifier="/us/stat/111/2467">111 STAT. 2467</page> <clause class="indent0 fontsize10"><num value="iv">(iv) </num><content>If a person within the scope of this subparagraph is confined in a facility under the control of the Bureau of Prisons at the time of release, the Bureau of Prisons shall provide notice of release and inform the person concerning registration obligations under the procedures specified in section 4042(c) of title 18, United States Code.</content></clause></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><heading><inline class="smallCaps">Protected witness registration.</inline>—</heading><chapeau>Section 3521(b)(1) of title 18, United States Code, is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking “<quotedText>and</quotedText>” at the end of subparagraph (G);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by redesignating subparagraph (H) as subparagraph (I); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>by inserting after subparagraph (G) the following: <quotedContent><subparagraph class="indent2 fontsize10"><num value="H">“(H) </num><content>protect the confidentiality of the identity and location <sidenote><p class="indent0 firstIndent0 fontsize8">Confidentiality.</p></sidenote>of persons subject to registration requirements as convicted offenders under Federal or State law, including prescribing alternative procedures to those otherwise provided by Federal or State law for registration and tracking of such persons; and”.</content></subparagraph></quotedContent></content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of Congress and Report Relating to Stalking Laws</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Sense of congress</inline>.—</heading><content>It is the sense of Congress that each State should have in effect a law that makes it a crime to stalk any individual, especially children, without requiring that such individual be physically harmed or abducted before a stalker is restrained or punished.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Report</inline>.—</heading><content>The Attorney General shall include in an <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s14039">42 USC 14039</ref> note.</p></sidenote>annual report under section 40610 of the Violent Crime Control and Law Enforcement Act of 1994 (42 U.S.C. 14039) information concerning existing or proposed State laws and penalties for stalking crimes against children.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Effective Date</inline>.—</heading><chapeau>This section shall take effect on the date <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s14071">42 USC 14071</ref> note.</p></sidenote>of the enactment of this Act, except that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>subparagraphs (A), (B), and (C) of subsection (a)(8) shall take effect 1 year after the date of the enactment of this Act; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>States shall have 3 years from such date of enactment to implement amendments made by this Act which impose new requirements under the Jacob Wetterling Crimes Against Children and Sexually Violent Offender Registration Act, and the Attorney General may grant an additional 2 years to a State that is making good faith efforts to implement these amendments.</content></paragraph></subsection></section> <section><num value="116"><inline class="smallCaps">Sec.</inline> 116. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 610(b) of the Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1993 (8 U.S.C. 1153; Public Law 102–395) is amended—<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1153">8 USC 1153</ref> note.</p></sidenote></chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking “<quotedText>300</quotedText>” and inserting “<quotedText>3,000</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking “<quotedText>five years</quotedText>” and inserting “<quotedText>seven years</quotedText>”.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1153">8 USC 1153</ref> note.</p></sidenote>(a)(2) shall be deemed to have become effective on October 6, 1992.</content></subsection></section> <section><num value="117"><inline class="smallCaps">Sec.</inline> 117. </num><content>For fiscal year 1998, the Attorney General shall provide a magnetometer and not less than one qualified guard at each unsecured entrance to the real property (including offices, buildings, and related grounds and facilities) that is leased to the United States as a place of employment for Federal employees at 625 Silver, S.W., in Albuquerque, New Mexico for the duration of time that Department of Justice employees are occupants of <page identifier="/us/stat/111/2468">111 STAT. 2468</page>this building, after which the General Services Administration shall provide the same level of security equipment and personnel at this location until the date on which the new Albuquerque Federal building is occupied.</content></section> <section><num value="118"><inline class="smallCaps">Sec.</inline> 118. </num><chapeau>Section 203(p)(1) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 484(p)(1)) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>(A)</quotedText>” after “(1)”; and</content></paragraph> <subparagraph class="indent2 fontsize10"><num value="2">(2) </num><content>by adding at the end the following new subparagraph: <quotedContent><subparagraph class="indent2 fontsize10"><num value="B">“(B)</num><clause class="inline"><num value="i">(i) </num><chapeau>The Administrator may exercise the authority under subparagraph (A) with respect to such surplus real and related property needed by the transferee or grantee for—</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I) </num><content>law enforcement purposes, as determined by the Attorney General; or</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II) </num><content>emergency management response purposes, including fire and rescue services, as determined by the Director of the Federal Emergency Management Agency.</content></subclause></clause> <clause class="indent0 fontsize10"><num value="ii">“(ii) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Termination date.</p></sidenote><content>The authority provided under this subparagraph shall terminate on December 31, 1999.”.</content></clause></subparagraph></quotedContent></content></subparagraph></section> <section><num value="119"><inline class="smallCaps">Sec.</inline> 119. </num><chapeau>Section 1701(b)(2)(A) of title I of the Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3796dd) is amended to read as follows—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>may not exceed 20 percent of the funds available for grants pursuant to this subsection in any fiscal year.”.</content></subparagraph></section> <section><num value="120"><inline class="smallCaps">Sec.</inline> 120. </num><content>Section 233(d) of the Antiterrorism and Effective <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s10602">42 USC 10602</ref> note.</p></sidenote>Death Penalty Act of 1996 (110 Stat. 1245) is amended by striking “<quotedText>1 year after the date of enactment of this Act</quotedText>” and inserting “<quotedText>October 1, 1999</quotedText>”.</content></section> <section><num value="121"><inline class="smallCaps">Sec.</inline> 121. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>In this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the terms “criminal offense against a victim who is a minor”, “sexually violent offense”, and “sexually violent predator” have the meanings given those terms in section 170101(a) of the Violent Crime Control and Law Enforcement Act of 1994 (42 U.S.C. 14071(a));</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the term “DNA” means deoxyribonucleic acid; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><chapeau>the term “sex offender” means an individual who—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><chapeau>has been convicted in Federal court of—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>a criminal offense against a victim who is a minor; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>a sexually violent offense; or</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>is a sexually violent predator.</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Report</inline>.—</heading><content>From amounts made available to the Department of Justice under this title, not later than 180 days after the date of enactment of this Act, the Attorney General shall submit to Congress a report, which shall include a plan for the implementation of a requirement that, prior to the release (including probation, parole, or any other supervised release) of any sex offender from Federal custody following a conviction for a criminal offense against a victim who is a minor or a sexually violent offense, the sex offender shall provide a DNA sample to the appropriate law enforcement agency for inclusion in a national law enforcement DNA database.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Plan Requirements</inline>.—</heading><chapeau>The plan submitted under subsection (b) shall include recommendations concerning—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>a system for—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the collection of DNA samples from any sex offender;</content></subparagraph> <page identifier="/us/stat/111/2469">111 STAT. 2469</page> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the analysis of the collected samples for DNA and other genetic typing analysis; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>making the DNA and other genetic typing information available for law enforcement purposes only;</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>guidelines for coordination with existing Federal and State DNA and genetic typing information databases and for Federal cooperation with State and local law in sharing this information;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>addressing constitutional, privacy, and related concerns in connection with the mandatory submission of DNA samples; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>procedures and penalties for the prevention of improper disclosure or dissemination of DNA or other genetic typing information.</content></paragraph></subsection></section> <section><num value="122"><inline class="smallCaps">Sec.</inline> 122. </num><subsection class="inline"><num value="a">(a) </num><content>Notwithstanding any other provision of law relating<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s3104">5 USC 3104</ref> note.</p></sidenote> to position classification or employee pay or performance, during the 3-year period beginning on the date of enactment of this Act, the Director of the Federal Bureau of Investigation may, with the approval of the Attorney General, establish a personnel management system providing for the compensation and performance management of not more than 3,000 non-Special Agent employees to fill critical scientific, technical, engineering, intelligence analyst, language translator, and medical positions in the Federal Bureau of Investigation.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Except as otherwise provided by law, no employee compensated under any system established under this section may be paid at a rate in excess of the rate payable for a position at level III of the Executive Schedule.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Total payments to employees under any system established under this section shall be subject to the limitation on payments to employees set forth in section 5307 of title 5, United States Code.</content></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>Not later than 90 days after the date of enactment of this Act, the Director of the Federal Bureau of Investigation shall submit to the Committees on Appropriations and the Committees on the Judiciary of the House of Representatives and the Senate, the Committee on Government Reform and Oversight of the House of Representatives, and the Committee on Governmental Affairs of the Senate, an operating plan describing the Director’s intended use of the authority under this section, and identifying any provisions of title 5, United States Code, being waived for purposes of any personnel management system to be established by the Director under this section.</content></subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><content>Any performance management system established under this section shall have not less than 2 levels of performance above a retention standard.</content></subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><chapeau>Not later than March 31, 2000, the Director of the Federal Bureau of Investigation shall submit to Congress an evaluation of the performance management system established under this section, which shall include—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>a comparison of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the compensation, benefits, and performance management provisions governing personnel of similar employment classification series in other departments and agencies of the Federal Government; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the costs, consistent with standards prescribed in Office of Management and Budget Circular A-76, of <page identifier="/us/stat/111/2470">111 STAT. 2470</page>contracting for any services provided through those departments and agencies; and</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>if appropriate, a recommendation for legislation to extend the authority under this section.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><content>Notwithstanding any other provision of law, the Secretary of the Treasury shall have the same authority provided to the Office of Personnel Management under section 4703 of title 5, United States Code, to establish, in the discretion of the Secretary, demonstration projects for a period of 3 years, for not to exceed a combined total of 950 employees, to fill critical scientific, technical, engineering, intelligence analyst, language translator, and medical positions in the Bureau of Alcohol, Tobacco and Firearms, the United States Customs Service, and the United States Secret Service.</content></subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Termination date.</p></sidenote><content>The authority under this section shall terminate 3 years after the date of enactment of this Act.</content></subsection></section> <section><num value="123"><inline class="smallCaps">Sec.</inline> 123. </num><subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 3626 of title 18, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>in subsection (a)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>in paragraph (1)(B)(i), by striking “<quotedText>permits</quotedText>” and inserting “<quotedText>requires</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><chapeau>in paragraph (3)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>in subparagraph (A), by striking “<quotedText>no prisoner release order shall be entered unless</quotedText>” and inserting “<quotedText>no court shall enter a prisoner release order unless</quotedText>”; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><chapeau>in subparagraph (F)—</chapeau> <subclause class="indent4 fontsize10"><num value="I">(I) </num><content>by inserting “<quotedText>including a legislator</quotedText>” after “local official”; and</content></subclause> <subparagraph class="indent2 fontsize10"><num value="II">(II) </num><content>by striking “<quotedText>program</quotedText>” and inserting “<quotedText>prison</quotedText>”;</content></subparagraph></clause></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in subsection (b)(3), by striking “<quotedText>current or ongoing</quotedText>” and inserting “<quotedText>current and ongoing</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><chapeau>in subsection (e)—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>in paragraph (1), by adding at the end the following: “<quotedText>Mandamus shall lie to remedy any failure to issue a prompt ruling on such a motion.</quotedText>”;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>in paragraph (2), by striking “<quotedText>Any prospective relief subject to a pending motion shall be automatically stayed</quotedText>” and inserting “<quotedText>Any motion to modify or terminate prospective relief made under subsection (b) shall operate as a stay</quotedText>”; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>by adding at the end the following: <quotedContent><paragraph class="indent1 fontsize10"><num value="3">“(3) </num><heading><inline class="smallCaps">Postponement of automatic stay</inline>.—</heading><content>The court may postpone the effective date of an automatic stay specified in subsection (e)(2)(A) for not more than 60 days for good cause. No postponement shall be permissible because of general congestion of the court’s calendar.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><heading><inline class="smallCaps">Order blocking the automatic stay</inline>.—</heading><content>Any order staying, suspending, delaying, or barring the operation of the automatic stay described in paragraph (2) (other than an order to postpone the effective date of the automatic stay under paragraph (3)) shall be treated as an order refusing to dissolve or modify an injunction and shall be appealable pursuant to section 1292(a)(1) of title 28, United States Code, regardless of how the order is styled or whether the order is termed a preliminary or a final ruling.”.</content></paragraph></quotedContent></content></subparagraph></paragraph></subsection> <page identifier="/us/stat/111/2471">111 STAT. 2471</page> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Effective Date.</inline>—</heading><content>The amendments made by this Act shall<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t18/s3626">18 USC 3626</ref> note.</p></sidenote> take effect upon the date of the enactment of this Act and shall apply to pending cases.</content></subsection></section> <section><num value="124"><inline class="smallCaps">Sec.</inline> 124. </num><content>Section 524(c)(8)(B) of title 28, United States Code, is amended by deleting “1996, and 1997,” and inserting “<quotedText>and 1996,</quotedText>” in place thereof.</content></section> <section><num value="125"><inline class="smallCaps">Sec.</inline> 125. </num><content>Section 217(f) of the Immigration and Nationality Act (8 U.S.C. 1187(f)) is amended to read as follows: <quotedContent><subsection class="indent0 fontsize10"><num value="f">“(f) </num><heading><inline class="smallCaps">Definition of Pilot Program Period</inline>.—</heading><content>For purposes of this section, the term ‘pilot program period’ means the period beginning on October 1, 1988, and ending on April 30, 1998.”.</content></subsection></quotedContent></content></section> <section><num value="126"><inline class="smallCaps">Sec.</inline> 126. </num><content>Section 140 of the Foreign Relations Authorization<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1182">8 USC 1182</ref> note.</p></sidenote> Act, Fiscal Years 1994 and 1995 (Public Law 103–236), is amended in subsection (g) by striking “<quotedText>December 31, 1997</quotedText>” and inserting “<quotedText>May 1, 1998</quotedText>”. </content></section> </level><continuation class="indent0 firstIndent1 fontsize10">This title may be cited as the “<shortTitle role="title">Department of Justice Appropriations Act, 1998</shortTitle>”.</continuation> <num value="I">TITLE II—</num><sidenote><p class="indent0 firstIndent0 fontsize8">Department of Commerce and Related Agencies Appropriations Act, 1998.</p></sidenote><heading>DEPARTMENT OF COMMERCE AND RELATED AGENCIES</heading> <appropriations level="intermediate"> <heading>Trade and Infrastructure Development</heading> </appropriations> <appropriations level="major"> <heading>RELATED AGENCIES</heading> <appropriations level="intermediate"> <heading>Office of the United States Trade Representative</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Office of the United States Trade Representative, including the hire of passenger motor vehicles and the employment of experts and consultants as authorized by 5 U.S.C. 3109, $23,450,000, of which $2,500,000 shall remain available until expended: <proviso><i>Provided,</i> That not to exceed $98,000 shall be available for official reception and representation expenses</proviso>: <proviso><i>Provided further</i>, That the total number of political appointees on board as of May 1, 1998, shall not exceed 25 positions</proviso>.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>International Trade Commission</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the International Trade Commission, including hire of passenger motor vehicles, and services as authorized by 5 U.S.C. 3109, and not to exceed $2,500 for official reception and representation expenses, $41,200,000 to remain available until expended.</content> </appropriations> </appropriations> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF COMMERCE</heading> <appropriations level="intermediate"> <heading>International Trade Administration</heading> <appropriations level="small"> <heading>operations and administration</heading> <content>For necessary expenses for international trade activities of the Department of Commerce provided for by law, and engaging in trade promotional activities abroad, including expenses of grants and cooperative agreements for the purpose of promoting exports of United States firms, without regard to 44 U.S.C. 3702 and <page identifier="/us/stat/111/2472">111 STAT. 2472</page>3703; full medical coverage for dependent members of immediate families of employees stationed overseas and employees temporarily posted overseas; travel and transportation of employees of the United States and Foreign Commercial Service between two points abroad, without regard to 49 U.S.C. 1517; employment of Americans and aliens by contract for services; rental of space abroad for periods not exceeding ten years, and expenses of alteration, repair, or improvement; purchase or construction of temporary demountable exhibition structures for use abroad; payment of tort claims, in the manner authorized in the first paragraph of 28 U.S.C. 2672 when such claims arise in foreign countries; not to exceed $327,000 for official representation expenses abroad; purchase of passenger motor vehicles for official use abroad, not to exceed $30,000 per vehicle; obtain insurance on official motor vehicles; and rent tie lines and teletype equipment; $283,066,000, to remain available until expended: <proviso><i>Provided,</i> That of the $287,866,000 provided for in direct obligations (of which $283,066,000 is appropriated from the general fund, and $4,800,000 is derived from unobligated balances and deobligations from prior years), $58,986,000 shall be for Trade Development, $17,340,000 shall be for Market Access and Compliance, $28,770,000 shall be for the Import Administration, $171,070,000 shall be for the United States and Foreign Commercial Service, and $11,700,000 shall be for Executive Direction <sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote>and Administration</proviso>: <proviso><i>Provided further</i>, That the provisions of the first sentence of section 105(f) and all of section 108(c) of the Mutual Educational and Cultural Exchange Act of 1961 (22 U.S.C. 2455(f) and 2458(c)) shall apply in carrying out these activities without regard to section 5412 of the Omnibus Trade and Competitiveness Act of 1988 (15 U.S.C. 4912); and that for the purpose of this Act, contributions under the provisions of the Mutual Educational and Cultural Exchange Act shall include payment for assessments for services provided as part of these activities</proviso>.3</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Export Administration</heading> <appropriations level="small"> <heading>operations and administration</heading> <content>For necessary expenses for export administration and national security activities of the Department of Commerce, including costs associated with the performance of export administration field activities both domestically and abroad; full medical coverage for dependent members of immediate families of employees stationed overseas; employment of Americans and aliens by contract for services abroad; rental of space abroad for periods not exceeding ten years, and expenses of alteration, repair, or improvement; payment of tort claims, in the manner authorized in the first paragraph of 28 U.S.C. 2672 when such claims arise in foreign countries; not to exceed $15,000 for official representation expenses abroad; awards of compensation to informers under the Export Administration Act of 1979, and as authorized by 22 U.S.C. 401(b); purchase of passenger motor vehicles for official use and motor vehicles for law enforcement use with special requirement vehicles eligible for purchase without regard to any price limitation otherwise established by law; $43,900,000 to remain available until expended, of which $1,900,000 shall be for inspections and other activities <sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote>related to national security: <proviso><i>Provided</i>, That the provisions of the first sentence of section 105(f) and all of section 108(c) of the Mutual Educational and Cultural Exchange Act of 1961 (22 U.S.C. <page identifier="/us/stat/111/2473">111 STAT. 2473</page>2455(f) and 2458(c)) shall apply in carrying out these activities</proviso>: <proviso><i>Provided further</i>, That payments and contributions collected and accepted for materials or services provided as part of such activities may be retained for use in covering the cost of such activities, and for providing information to the public with respect to the export administration and national security activities of the Department of Commerce and other export control programs of the United States and other governments</proviso>.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Economic Development Administration</heading> <appropriations level="small"> <heading>economic development assistance programs</heading> <content>For grants for economic development assistance as provided by the Public Works and Economic Development Act of 1965, as amended, Public Law 91–304, and such laws that were in effect immediately before September 30, 1982, and for trade adjustment assistance, $340,000,000: <proviso><i>Provided,</i> That none of the funds appropriated or otherwise made available under this heading may be used directly or indirectly for attorneys’ or consultants’ fees in connection with securing grants and contracts made by the Economic Development Administration: Provided further, That, notwithstanding any other provision of law, the Secretary of Commerce may provide financial assistance for projects to be located on military installations closed or scheduled for closure or realignment to grantees eligible for assistance under the Public Works and Economic Development Act of 1965, as amended, without it being required that the grantee have title or ability to obtain a lease for the property, for the useful life of the project, when in the opinion of the Secretary of Commerce, such financial assistance is necessary for the economic development of the area</proviso>: <proviso><i>Provided further</i>, That the Secretary of Commerce may, as the Secretary considers appropriate, consult with the Secretary of Defense regarding the title to land on military installations closed or scheduled for closure or realignment</proviso>.</content> </appropriations> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of administering the economic development assistance programs as provided for by law, $21,028,000: <proviso><i>Provided</i>, That these funds may be used to monitor projects approved pursuant to title I of the Public Works Employment Act of 1976, as amended, title II of the Trade Act of 1974, as amended, and the Community Emergency Drought Relief Act of 1977</proviso>.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Minority Business Development Agency</heading> <appropriations level="small"> <heading>minority business development</heading> <content>For necessary expenses of the Department of Commerce in fostering, promoting, and developing minority business enterprise, including expenses of grants, contracts, and other agreements with public or private organizations, $25,000,000.</content> </appropriations> </appropriations> <page identifier="/us/stat/111/2474">111 STAT. 2474</page> <appropriations level="intermediate"> <heading>Economic and Information Infrastructure</heading> <appropriations level="intermediate"> <heading>Economic and Statistical Analysis</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses, as authorized by law, of economic and statistical analysis programs of the Department of Commerce, $47,499,000, to remain available until September 30, 1999.</content> </appropriations> <appropriations level="small"> <heading>economics and statistics administration revolving fund</heading> <content>The Secretary of Commerce is authorized to disseminate<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s1527a">15 USC 1527a</ref> note.</p></sidenote> economic and statistical data products as authorized by sections 1, 2, and 4 of Public Law 91–412 (15 U.S.C. 1525–1527) and, notwithstanding section 5412 of the Omnibus Trade and Competitiveness Act of 1988 (15 U.S.C. 4912), charge fees necessary to recover the full costs incurred in their production. Notwithstanding 31 U.S.C. 3302, receipts received from these data dissemination activities shall be credited to this account, to be available for carrying out these purposes without further appropriation.</content> </appropriations> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Bureau of the Census</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For expenses necessary for collecting, compiling, analyzing, preparing, and publishing statistics, provided for by law, $137,278,000.</content> </appropriations> <appropriations level="small"> <heading>periodic censuses and programs</heading> <content><p class="indent0 firstIndent1 fontsize10">For expenses necessary to conduct the decennial census, $389,887,000, to remain available until expended: <proviso><i>Provided,</i> That of this amount, $4,000,000 shall be transferred to the Census Monitoring Board for necessary expenses as authorized by section 210 of this Act</proviso>.</p> <p class="indent0 firstIndent1 fontsize10">In addition, for expenses to collect and publish statistics for other periodic censuses and programs provided for by law, $165,926,000, to remain available until expended.</p></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Telecommunications and Information Administration</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses, as provided for by law, of the National Telecommunications and Information Administration (NTIA), $16,550,000, to remain available until expended: <proviso><i>Provided,</i> That notwithstanding 31 U.S.C. 1535(d), the Secretary of Commerce shall charge Federal agencies for costs incurred in spectrum management, analysis, and operations, and related services and such fees shall be retained and used as offsetting collections for costs of such spectrum services, to remain available until expended</proviso>: <proviso><i>Provided <sidenote><p class="indent0 firstIndent0 fontsize8">47 USC 903 note.</p></sidenote>further,</i> That hereafter, notwithstanding any other provision of law, NTIA shall not authorize spectrum use or provide any spectrum functions pursuant to the NTIA Organization Act, 47 U.S.C. 902903, to any Federal entity without reimbursement as required by NTIA for such spectrum management costs, and Federal entities <page identifier="/us/stat/111/2475">111 STAT. 2475</page>withholding payment of such cost shall not use spectrum</proviso>: <proviso><i>Provided further</i>, That the Secretary of Commerce is authorized to retain and use as offsetting collections all funds transferred, or previously transferred, from other Government agencies for all costs incurred in telecommunications research, engineering, and related activities by the Institute for Telecommunication Sciences of the NTIA, in furtherance of its assigned functions under this paragraph, and such funds received from other Government agencies shall remain available until expended</proviso>.</content> </appropriations> <appropriations level="small"> <heading>public telecommunications facilities, planning and construction</heading> <content>For grants authorized by section 392 of the Communications Act of 1934, as amended, $21,000,000, to remain available until expended as authorized by section 391 of the Act, as amended: Provided, That not to exceed $1,500,000 shall be available for program administration as authorized by section 391 of the Act: <proviso><i>Provided further</i>, That notwithstanding the provisions of section 391 of the Act, the prior year unobligated balances may be made available for grants for projects for which applications have been submitted and approved during any fiscal year</proviso>: <proviso><i>Provided further</i>, That, notwithstanding any other provision of law, the Pan-Pacific Education and Communication Experiments by Satellite (PEACESAT) Program is eligible to compete for Public Telecommunications Facilities, Planning and Construction funds</proviso>.</content> </appropriations> <appropriations level="small"> <heading>information infrastructure grants</heading> <content>For grants authorized by section 392 of the Communications Act of 1934, as amended, $20,000,000, to remain available until expended as authorized by section 391 of the Act, as amended: <proviso><i>Provided</i>, That not to exceed $3,000,000 shall be available for program administration and other support activities as authorized by section 391</proviso>: <proviso><i>Provided further</i>, That of the funds appropriated herein, not to exceed 5 percent may be available for telecommunications research activities for projects related directly to the development of a national information infrastructure</proviso>: <proviso><i>Provided further</i>, That, notwithstanding the requirements of section 392(a) and 392(c) of the Act, these funds may be used for the planning and construction of telecommunications networks for the provision of educational, cultural, health care, public information, public safety, or other social services</proviso>.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Patent and Trademark Office</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Patent and Trademark Office provided for by law, including defense of suits instituted against the Commissioner of Patents and Trademarks, $691,000,000, to remain available until expended: <proviso><i>Provided</i>, That of this amount, $664,000,000 shall be derived from offsetting collections assessed and collected pursuant to 15 U.S.C. 1113 and 35 U.S.C. 41 and 376 and shall be retained and used for necessary expenses in this appropriation</proviso>: <proviso><i>Provided further</i>, That the sum herein appropriated from the general fund shall be reduced as such offsetting collections are received during fiscal year 1998, so as to result <page identifier="/us/stat/111/2476">111 STAT. 2476</page>in a final fiscal year 1998 appropriation from the general fund estimated at $0: Provided further, That during fiscal year 1998, should the total amount of offsetting fee collections be less than $664,000,000, the total amounts available to the Patent and Trademark Office shall be reduced accordingly</proviso>: <proviso><i>Provided further</i>, That any fees received in excess of $664,000,000 in fiscal year 1998 shall remain available until expended, but shall not be available for obligation until October 1, 1998</proviso>: <proviso><i>Provided further</i>, That the remaining $27,000,000 shall be derived from deposits in the Patent and Trademark Office Fee Surcharge Fund as authorized by law and shall remain available until expended</proviso>.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Science and Technology</heading> <appropriations level="intermediate"> <heading>Technology Administration</heading> <appropriations level="small"> <heading>under secretary for technology/office of technology policy</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses for the Under Secretary for Technology/Office of Technology Policy, $8,500,000, of which not to exceed $1,600,000 shall remain available until September 30, 1999.</content> </appropriations> </appropriations> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Institute of Standards and Technology</heading> <appropriations level="small"> <heading>scientific and technical research and services</heading> <content>For necessary expenses of the National Institute of Standards and Technology, $276,852,000, to remain available until expended, of which not to exceed $3,800,000 shall be used to fund a cooperative agreement with Texas Tech University for wind research; and of which not to exceed $5,000,000 of the amount above $268,000,000 shall be used to fund a cooperative agreement with Montana State University for a research program on green buildings; and of which not to exceed $1,625,000 maybe transferred to the “Working Capital Fund”.</content> </appropriations> <appropriations level="small"> <heading>industrial technology services</heading> <content><p class="indent0 firstIndent1 fontsize10">For necessary expenses of the Manufacturing Extension Partnership of the National Institute of Standards and Technology, $113,500,000, to remain available until expended, of which not to exceed $300,000 may be transferred to the “Working Capital <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s178k">5 USC 178k</ref> note.</p></sidenote>Fund”: <proviso><i>Provided,</i> That notwithstanding the time limitations imposed by 15 U.S.C. 278k(c)(1) and (5) on the duration of Federal financial assistance that may be awarded by the Secretary of Commerce to Regional Centers for the transfer of Manufacturing Technology (“Centers”), such Federal financial assistance for a Center may continue beyond six years and may be renewed for additional periods, not to exceed one year, at a rate not to exceed one-third of the Center’s total annual costs, subject before any such renewal to a positive evaluation of the Center and to a finding by the Secretary of Commerce that continuation of Federal funding to the Center is in the best interest of the Regional Centers for the transfer of Manufacturing Technology Program</proviso>: <proviso><i>Provided further</i>, That the Center’s most recent performance evaluation is positive, and the Center has submitted a reapplication which has successfully passed merit review</proviso>.</p> <page identifier="/us/stat/111/2477">111 STAT. 2477</page> <p class="indent0 firstIndent1 fontsize10">In addition, for necessary expenses of the Advanced Technology Program of the National Institute of Standards and Technology, $192,500,000, to remain available until expended, of which not to exceed $82,000,000 shall be available for the award of new grants, and of which not to exceed $500,000 may be transferred to the “Working Capital Fund”.</p></content> </appropriations> <appropriations level="small"> <heading>construction of research facilities</heading> <content>For construction of new research facilities, including architectural and engineering design, and for renovation of existing facilities, not otherwise provided for the National Institute of Standards and Technology, as authorized by 15 U.S.C. 278c-278e, $95,000,000, to remain available until expended: <proviso><i>Provided</i>, That of the amounts provided under this heading, $78,308,000 shall be available for obligation and expenditure only after submission of a plan for the expenditure of these funds, in accordance with section 605 of this Act</proviso>.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Oceanic and Atmospheric Administration</heading> <appropriations level="small"> <heading>operations, research, and facilities</heading> <subheading>(including transfers of funds)</subheading> <content>For necessary expenses of activities authorized by law for the National Oceanic and Atmospheric Administration, including maintenance, operation, and hire of aircraft; not to exceed 283 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t33/s851">33 USC 851</ref>.</p></sidenote> commissioned officers on the active list as of September 30, 1998; grants, contracts, or other payments to nonprofit organizations for the purposes of conducting activities pursuant to cooperative agreements; and relocation of facilities as authorized by 33 U.S.C. 883i; $1,512,050,000, to remain available until expended: <proviso><i>Provided,</i> That, notwithstanding 31 U.S.C. 3302 but consistent with other existing law, fees shall be assessed, collected, and credited to this appropriation as offsetting collections to be available until expended, to recover the costs of administering aeronautical charting programs</proviso>: <proviso><i>Provided further</i>, That the sum herein appropriated from the general fund shall be reduced as such additional fees are received during fiscal year 1998, so as to result in a final general fund appropriation estimated at not more than $1,509,050,000</proviso>: <proviso><i>Provided further</i>, That any such additional fees received in excess of $3,000,000 in fiscal year 1998 shall not be available for obligation until October 1, 1998</proviso>: <proviso><i>Provided further</i>, That fees and donations received by the National Ocean Service for the management of the national marine sanctuaries may be retained and used for the salaries and expenses associated with those activities, notwithstanding 31 U.S.C. 3302</proviso>: <proviso><i>Provided further</i>, That in addition, $62,381,000 shall be derived by transfer from the fund entitled “Promote and Develop Fishery Products and Research Pertaining to American Fisheries”</proviso>: <proviso><i>Provided further</i>, That grants to States pursuant to sections 306 and 306A of the Coastal Zone Management Act of 1972, as amended, shall not exceed $2,000,000</proviso>: <proviso><i>Provided further</i>, That unexpended balances in the accounts “Construction” and “Fleet Modernization, Shipbuilding and Conversion” shall be transferred to and merged with this account, to remain available until expended for the purposes for which the funds were originally appropriated</proviso>.</content> </appropriations> <page identifier="/us/stat/111/2478">111 STAT. 2478</page> <appropriations level="small"> <heading>procurement, acquisition and construction</heading> <subheading>(including transfers of funds)</subheading> <content>For procurement, acquisition and construction of capital assets, including alteration and modification costs, of the National Oceanic and Atmospheric Administration, $491,609,000, to remain available until expended: <proviso><i>Provided</i>, That not to exceed $116,910,000 is available for the advanced weather interactive processing system, and may be available for obligation and expenditure only pursuant to a certification by the Secretary of Commerce that the total cost to complete the acquisition and deployment of the advanced weather interactive processing system and NOAA Port system, including program management, operations and maintenance costs through deployment will not exceed $188,700,000</proviso>: <proviso><i>Provided further</i>, That unexpended balances of amounts previously made available in the “Operations, Research, and Facilities” account and the “Construction” account for activities funded under this heading may be transferred to and merged with this account, to remain available until expended for the purposes for which the funds were originally appropriated</proviso>.</content> </appropriations> <appropriations level="small"> <heading>coastal zone management fund</heading> <content>Of amounts collected pursuant to section 308 of the Coastal Zone Management Act of 1972 (16 U.S.C. 1456a), not to exceed $7,800,000, for purposes set forth in sections 308(b)(2)(A), 308(b)(2)(B)(v), and 315(e) of such Act.</content> </appropriations> <appropriations level="small"> <heading>fishermen’s contingency fund</heading> <content>For carrying out the provisions of title IV of Public Law 95–372, not to exceed $953,000, to be derived from receipts collected pursuant to that Act, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>foreign fishing observer fund</heading> <content>For expenses necessary to carry out the provisions of the Atlantic Tunas Convention Act of 1975, as amended (Public Law 96–339), the Magnuson-Stevens Fishery Conservation and Management Act of 1976, as amended (Public Law 100–627), and the American Fisheries Promotion Act (Public Law 96–561), to be derived from the fees imposed under the foreign fishery observer program authorized by these Acts, not to exceed $189,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>fisheries finance program account</heading> <content>For the cost of direct loans, $338,000, as authorized by the Merchant Marine Act of 1936, as amended: <proviso><i>Provided</i>, That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974</proviso>: <proviso><i>Provided further</i>, That none of the funds made available under this heading may be used for direct loans for any new fishing vessel that will increase the harvesting capacity in any United States fishery</proviso>.</content> </appropriations> </appropriations> <page identifier="/us/stat/111/2479">111 STAT. 2479</page> <appropriations level="intermediate"> <heading>General Administration</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For expenses necessary for the general administration of the Department of Commerce provided for by law, including not to exceed $3,000 for official entertainment, $27,490,000.</content> </appropriations> <appropriations level="small"> <heading>office of inspector general</heading> <content>For necessary expenses of the Office of Inspector General in carrying out the provisions of the Inspector General Act of 1978, as amended (5 U.S.C. App. 1–11), as amended by Public Law 100–504, $20,140,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Oceanic and Atmospheric Administration</heading> <appropriations level="small"> <heading>operations, research, and facilities</heading> <subheading>(rescission)</subheading> <content>Of the unobligated balances available under this heading, $20,500,000 are rescinded.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>United States Travel and Tourism Administration</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(rescission)</subheading> <content>Of the unobligated balances available under this heading, $3,000,000 are rescinded.</content> </appropriations> </appropriations> </appropriations> <level> <heading>General Provisions—Department of Commerce</heading> <section><num value="201"><inline class="smallCaps">Sec.</inline> 201. </num><content>During the current fiscal year, applicable appropriations and funds made available to the Department of Commerce by this Act shall be available for the activities specified in the Act of October 26, 1949 (15 U.S.C. 1514), to the extent and in the manner prescribed by the Act, and, notwithstanding 31 U.S.C. 3324, may be used for advanced payments not otherwise authorized only upon the certification of officials designated by the Secretary of Commerce that such payments are in the public interest.</content></section> <section><num value="202"><inline class="smallCaps">Sec.</inline> 202. </num><content>During the current fiscal year, appropriations made available to the Department of Commerce by this Act for salaries and expenses shall be available for hire of passenger motor vehicles as authorized by 31 U.S.C. 1343 and 1344; services as authorized by 5 U.S.C. 3109; and uniforms or allowances therefor, as authorized by law (5 U.S.C. 5901–5902).</content></section> <section><num value="203"><inline class="smallCaps">Sec.</inline> 203. </num><content>None of the funds made available by this Act may be used to support the hurricane reconnaissance aircraft and activities that are under the control of the United States Air Force or the United States Air Force Reserve.</content></section> <section><num value="204"><inline class="smallCaps">Sec.</inline> 204. </num><content>None of the funds provided in this or any previous <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t13/s23">13 USC 23</ref> note.</p></sidenote>Act, or hereinafter made available to the Department of Commerce, shall be available to reimburse the Unemployment Trust Fund or any other fund or account of the Treasury to pay for any expenses paid before October 1, 1992, as authorized by section 8501 of title 5, United States Code, for services performed after April 20, 1990, by individuals appointed to temporary positions within the Bureau <page identifier="/us/stat/111/2480">111 STAT. 2480</page>of the Census for purposes relating to the 1990 decennial census of population.</content></section> <section><num value="205"><inline class="smallCaps">Sec.</inline> 205. </num><content>Not to exceed 5 percent of any appropriation made available for the current fiscal year for the Department of Commerce in this Act may be transferred between such appropriations, but no such appropriation shall be increased by more than 10 percent by any such transfers: <proviso><i>Provided,</i> That any transfer pursuant to this section shall be treated as a reprogramming of funds under section 605 of this Act and shall not be available for obligation or expenditure except in compliance with the procedures set forth in that section</proviso>.</content></section> <section><num value="206"><inline class="smallCaps">Sec.</inline> 206. </num><subsection class="inline"><num value="a">(a) </num><content>Should legislation be enacted to dismantle or reorganize the Department of Commerce, or any portion thereof, the Secretary of Commerce, no later than 90 days thereafter, shall submit to the Committees on Appropriations of the House and the Senate a plan for transferring funds provided in this Act to the appropriate successor organizations: <proviso><i>Provided,</i> That the plan shall include a proposal for transferring or rescinding funds appropriated herein for agencies or programs terminated under such legislation</proviso>: <proviso><i>Provided further</i>, That such plan shall be transmitted in accordance with section 605 of this Act</proviso>.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The Secretary of Commerce or the appropriate head of any successor organization(s) may use any available funds to carry out legislation dismantling or reorganizing the Department of Commerce, or any portion thereof, to cover the costs of actions relating to the abolishment, reorganization, or transfer of functions and any related personnel action, including voluntary separation incentives if authorized by such legislation: <proviso><i>Provided</i>, That the authority to transfer funds between appropriations accounts that may be necessary to carry out this section is provided in addition to authorities included under section 205 of this Act</proviso>: <proviso><i>Provided further</i>, That use of funds to carry out this section shall be treated as a reprogramming of funds under section 605 of this Act and shall not be available for obligation or expenditure except in compliance with the procedures set forth in that section</proviso>.</content></subsection></section> <section><num value="207"><inline class="smallCaps">Sec.</inline> 207. </num><content>Any costs incurred by a department or agency funded under this title resulting from personnel actions taken in response to funding reductions included in this title or from actions taken for the care and protection of loan collateral or grant property shall be absorbed within the total budgetary resources available to such department or agency: <proviso><i>Provided,</i> That the authority to transfer funds between appropriations accounts as may be necessary to carry out this section is provided in addition to authorities included elsewhere in this Act</proviso>: <proviso><i>Provided further</i>, That use of funds to carry out this section shall be treated as a reprogramming of funds under section 605 of this Act and shall not be available for obligation or expenditure except in compliance with the procedures set forth in that section</proviso>.</content></section> <section><num value="208"><inline class="smallCaps">Sec.</inline> 208. </num><content>The Secretary of Commerce may award contracts for hydrographic, geodetic, and photogrammetric surveying and mapping services in accordance with title IX of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 541 et seq.).</content></section> <section><num value="209"><inline class="smallCaps">Sec.</inline> 209. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t13/s141">13 USC 141</ref> note.</p></sidenote><subsection class="inline"><num value="a">(a) </num><chapeau>Congress finds that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>it is the constitutional duty of the Congress to ensure that the decennial enumeration of the population is conducted in a manner consistent with the Constitution and laws of the United States;</content></paragraph> <page identifier="/us/stat/111/2481">111 STAT. 2481</page> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the sole constitutional purpose of the decennial enumeration of the population is the apportionment of Representatives in Congress among the several States;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>section 2 of the 14th article of amendment to the Constitution clearly states that Representatives are to be “apportioned among the several States according to their respective numbers, counting the whole number of persons in each State”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>article I, section 2, clause 3 of the Constitution clearly requires an “actual Enumeration” of the population, and section 195 of title 13, United States Code, clearly provides “Except for the determination of population for purposes of apportionment of Representatives in Congress among the several States, the Secretary shall, if he considers it feasible, authorize the use of the statistical method known as ‘sampling’ in carrying out the provisions of this title.”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>the decennial enumeration of the population is one of the most critical constitutional functions our Federal Government performs;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>it is essential that the decennial enumeration of the population be as accurate as possible, consistent with the Constitution and laws of the United States;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>the use of statistical sampling or statistical adjustment in conjunction with an actual enumeration to carry out the census with respect to any segment of the population poses the risk of an inaccurate, invalid, and unconstitutional census;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>the decennial enumeration of the population is a complex and vast undertaking, and if such enumeration is conducted in a manner that does not comply with the requirements of the Constitution or laws of the United States, it would be impracticable for the States to obtain, and the courts of the United States to provide, meaningful relief after such enumeration has been conducted; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><chapeau>Congress is committed to providing the level of funding that is required to perform the entire range of constitutional census activities, with a particular emphasis on accurately enumerating all individuals who have historically been undercounted, and toward this end, Congress expects—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>aggressive and innovative promotion and outreach campaigns in hard-to-count communities;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the hiring of enumerators from within those communities;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>continued cooperation with local government on address list development; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>maximized census employment opportunities for individuals seeking to make the transition from welfare to work.</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Any person aggrieved by the use of any statistical method in violation of the Constitution or any provision of law (other than this Act), in connection with the 2000 or any later decennial census, to determine the population for purposes of the apportionment or redistricting of Members in Congress, may in a civil action obtain declaratory, injunctive, and any other appropriate relief against the use of such method.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the use of any statistical method as part of a dress rehearsal or other simulation of a census in preparation for <page identifier="/us/stat/111/2482">111 STAT. 2482</page>the use of such method, in a decennial census, to determine the population for purposes of the apportionment or redistricting of Members in Congress shall be considered the use of such method in connection with that census; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the report ordered by title VIII of Public Law 105–18 and the Census 2000 Operational Plan shall be deemed to constitute final agency action regarding the use of statistical methods in the 2000 decennial census, thus making the question of their use in such census sufficiently concrete and final to now be reviewable in a judicial proceeding.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><chapeau>For purposes of this section, an aggrieved person (described in subsection (b)) includes—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>any resident of a State whose congressional representation or district could be changed as a result of the use of a statistical method challenged in the civil action;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>any Representative or Senator in Congress; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>either House of Congress.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="e">(e)</num><paragraph class="inline"><num value="1">(1) </num><content>Any action brought under this section shall be heard and determined by a district court of three judges in accordance with section 2284 of title 28, United States Code. The chief judge of the United States court of appeals for each circuit shall, to the extent practicable and consistent with the avoidance of unnecessary delay, consolidate, for all purposes, in one district court within that circuit, all actions pending in that circuit under this section. Any party to an action under this section shall be precluded from seeking any consolidation of that action other than is provided in this paragraph. In selecting the district court in which to consolidate such actions, the chief judge shall consider the convenience of the parties and witnesses and efficient conduct of such actions. Any final order or injunction of a United States district court that is issued pursuant to an action brought under this section shall be reviewable by appeal directly to the Supreme Court of the United States. Any such appeal shall be taken by a notice of appeal filed within 10 days after such order is entered; and the jurisdictional statement shall be filed within 30 days after such order is entered. No stay of an order issued pursuant to an action brought under this section may be issued by a single Justice of the Supreme Court.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>It shall be the duty of a United States district court hearing an action brought under this section and the Supreme Court of the United States to advance on the docket and to expedite to the greatest possible extent the disposition of any such matter.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><content>Any agency or entity within the executive branch having authority with respect to the carrying out of a decennial census may in a civil action obtain a declaratory judgment respecting whether or not the use of a statistical method, in connection with such census, to determine the population for the purposes of the apportionment or redistricting of Members in Congress is forbidden by the Constitution and laws of the United States.</content></subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><content>The Speaker of the House of Representatives or the Speaker’s designee or designees may commence or join in a civil action, for and on behalf of the House of Representatives, under any applicable law, to prevent the use of any statistical method, in connection with the decennial census, to determine the population for purposes of the apportionment or redistricting of Members in Congress. It shall be the duty of the Office of the General Counsel of the House of Representatives to represent the House in such <page identifier="/us/stat/111/2483">111 STAT. 2483</page>civil action, according to the directions of the Speaker. The Office of the General Counsel of the House of Representatives may employ the services of outside counsel and other experts for this purpose.</content></subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num><chapeau>For purposes of this section and section 210—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the term “statistical method” means an activity related to the design, planning, testing, or implementation of the use of representative sampling, or any other statistical procedure, including statistical adjustment, to add or subtract counts to or from the enumeration of the population as a result of statistical inference; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the term “census” or “decennial census” means a decennial enumeration of the population.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="i">(i) </num><content>Nothing in this Act shall be construed to authorize the use of any statistical method, in connection with a decennial census, for the apportionment or redistricting of Members in Congress.</content></subsection> <subsection class="indent0 fontsize10"><num value="j">(j) </num><content>Sufficient funds appropriated under this Act or under any other Act for purposes of the 2000 decennial census shall be used by the Bureau of the Census to plan, test, and become prepared to implement a 2000 decennial census, without using statistical methods, which shall result in the percentage of the total population actually enumerated being as close to 100 percent as possible. In both the 2000 decennial census, and any dress rehearsal or other simulation made in preparation for the 2000 decennial census, the number of persons enumerated without using statistical methods must be publicly available for all levels of census geography which are being released by the Bureau of the Census for: (1) all data releases before January 1, 2001; (2) the data contained in the 2000 decennial census Public Law 94–171 data file released for use in redistricting; (3) the Summary Tabulation File One (STF—1) for the 2000 decennial census; and (4) the official populations of the States transmitted from the Secretary of Commerce through the President to the Clerk of the House used to reapportion the districts of the House among the States as a result of the 2000 decennial census. Simultaneously with any other release or reporting <sidenote><p class="indent0 firstIndent0 fontsize8">Public information.</p> <p class="indent0 firstIndent0 fontsize8">Internet.</p> </sidenote>of any of the information described in the preceding sentence through other means, such information shall be made available to the public on the Internet. These files of the Bureau of the Census shall be available concurrently to the release of the original files to the same recipients, on identical media, and at a comparable price. They shall contain the number of persons enumerated without using statistical methods and any additions or subtractions thereto. These files shall be based on data gathered and generated by the Bureau of the Census in its official capacity.</content></subsection> <subsection class="indent0 fontsize10"><num value="k">(k) </num><content>This section shall apply in fiscal year 1998 and succeeding fiscal years.</content></subsection> </section> <section><num value="210"><inline class="smallCaps">Sec.</inline> 210. </num><subsection class="inline"><num value="a">(a) </num><content>There shall be established a board to be known <sidenote><p class="indent0 firstIndent0 fontsize8">Establishment.</p> <p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t13/s141">13 USC 141</ref> note.</p> </sidenote>as the Census Monitoring Board (hereafter in this section referred to as the “Board”).</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The function of the Board shall be to observe and monitor all aspects of the preparation and implementation of the 2000 decennial census (including all dress rehearsals and other simulations of a census in preparation therefor).</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c)</num><paragraph class="inline"><num value="1">(1) </num><chapeau>The Board shall be composed of 8 members as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>Two individuals appointed by the majority leader of the Senate.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>Two individuals appointed by the Speaker of the House of Representatives.</content></subparagraph> <page identifier="/us/stat/111/2484">111 STAT. 2484</page> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><sidenote><p class="indent0 firstIndent0 fontsize8">President.</p></sidenote><chapeau>Four individuals appointed by the President, of whom—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>one shall be on the recommendation of the minority leader of the Senate; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>one shall be on the recommendation of the minority leader of the House of Representatives.</content></clause> <continuation>All members of the Board shall be appointed within 60 days after the date of enactment of this Act. A vacancy in the Board shall be filled in the manner in which the original appointment was made.</continuation></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Members shall not be entitled to any pay by reason of their service on the Board, but shall receive travel expenses, including per diem in lieu of subsistence, in accordance with sections 5702 and 5703 of title 5, United States Code.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><chapeau>The Board shall have—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>a co-chairman who shall be appointed jointly by the members under subsection (c)(1)(A) and (B), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>a co-chairman who shall be appointed jointly by the members under subsection (c)(1)(C).</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The Board shall meet at the call of either co-chairman.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>A quorum shall consist of five members of the Board.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>The Board may promulgate any regulations necessary to carry out its duties.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="d">(d)</num><paragraph class="inline"><num value="1">(1) </num><chapeau>The Board shall have—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>an executive director who shall be appointed jointly by the members under subsection (c)(1)(A) and (B), and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>an executive director who shall be appointed jointly by the members under subsection (c)(1)(C),</content></subparagraph> <continuation>each of whom shall be paid at a rate not to exceed level IV of the Executive Schedule.</continuation></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>Subject to such rules as the Board may prescribe, each executive director—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>may appoint and fix the pay of such additional personnel as that executive director considers appropriate; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>may procure temporary and intermittent services under section 3109(b) of title 5, United States Code, but at rates for individuals not to exceed the daily equivalent of the maximum annual rate of pay payable for grade GS-15 of the General Schedule.</content></subparagraph> <continuation>Such rules shall include provisions to ensure an equitable division or sharing of resources, as appropriate, between the respective staff of the Board.</continuation></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The staff of the Board shall be appointed without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, and shall be paid without regard to the provisions of chapter 51 and subchapter III of chapter 53 of such title (relating to classification and General Schedule pay rates).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The Administrator of the General Services Administration, in coordination with the Secretary of Commerce, shall locate suitable office space for the operation of the Board in the W. Edwards Deming Building in Suitland, Maryland. The facilities shall serve as the headquarters of the Board and shall include all necessary equipment and incidentals required for the proper functioning of the Board.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="e">(e)</num><paragraph class="inline"><num value="1">(1) </num><content>For the purpose of carrying out its duties, the Board may hold such hearings (at the call of either co-chairman) and <page identifier="/us/stat/111/2485">111 STAT. 2485</page>undertake such other activities as the Board determines to be necessary to carry out its duties.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The Board may authorize any member of the Board or of its staff to take any action which the Board is authorized to take by this subsection.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3)</num><subparagraph class="inline"><num value="A">(A) </num><content>Each co-chairman of the Board and any members of the staff who may be designated by the Board under this paragraph shall be granted access to any data, files, information, or other matters maintained by the Bureau of the Census (or received by it in the course of conducting a decennial census of population) which they may request, subject to such regulations as the Board may prescribe in consultation with the Secretary of Commerce.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>The Board or the co-chairmen acting jointly may secure directly from any other Federal agency, including the White House, all information that the Board considers necessary to enable the Board to carry out its duties. Upon request of the Board or both co-chairmen, the head of that agency (or other person duly designated for purposes of this paragraph) shall furnish that information to the Board.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The Board shall prescribe regulations under which any <sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote>member of the Board or of its staff, and any person whose services are procured under subsection (d)(2)(B), who gains access to any information or other matter pursuant to this subsection shall, to the extent that any provisions of section 9 or 214 of title 13, United States Code, would apply with respect to such matter in the case of an employee of the Department of Commerce, be subject to such provisions.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Upon the request of the Board, the head of any Federal agency is authorized to detail, without reimbursement, any of the personnel of such agency to the Board to assist the Board in carrying out its duties. Any such detail shall not interrupt or otherwise affect the civil service status or privileges of the Federal employee.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>Upon the request of the Board, the head of a Federal agency shall provide such technical assistance to the Board as the Board determines to be necessary to carry out its duties.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>The Board may use the United States mails in the same manner and under the same conditions as Federal agencies and shall, for purposes of the frank, be considered a commission of Congress as described in section 3215 of title 39, United States Code.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>Upon request of the Board, the Administrator of General Services shall provide to the Board on a reimbursable basis such administrative support services as the Board may request.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><content>For purposes of costs relating to printing and binding, including the cost of personnel detailed from the Government Printing Office, the Board shall be deemed to be a committee of the Congress.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="f">(f)</num><paragraph class="inline"><num value="1">(1) </num><chapeau>The Board shall transmit to the Congress—</chapeau><sidenote> <p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>interim reports, with the first such report due by April 1, 1998;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>additional reports, the first of which shall be due by February 1, 1999, the second of which shall be due by April 1, 1999, and subsequent reports at least semiannually thereafter;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>a final report which shall be due by September 1, 2001; and</content></subparagraph> <page identifier="/us/stat/111/2486">111 STAT. 2486</page> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>any other reports which the Board considers appropriate.</content></subparagraph> <continuation>The final report shall contain a detailed statement of the findings and conclusions of the Board with respect to the matters described in subsection (b).</continuation></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>In addition to any matter otherwise required under this subsection, each such report shall address, with respect to the period covered by such report—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><chapeau>the degree to which efforts of the Bureau of the Census to prepare to conduct the 2000 census—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>shall achieve maximum possible accuracy at every level of geography;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>shall be taken by means of an enumeration process designed to count every individual possible; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii) </num><content>shall be free from political bias and arbitrary decisions; and</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><chapeau>efforts by the Bureau of the Census intended to contribute to enumeration improvement, specifically, in connection with—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>computer modernization and the appropriate use of automation;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>address list development;</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii) </num><content>outreach and promotion efforts at all levels designed to maximize response rates, especially among groups that have historically been undercounted (including measures undertaken in conjunction with local government and community and other groups);</content></clause> <clause class="indent3 fontsize10"><num value="iv">(iv)</num><content>establishment and operation of field offices; and</content></clause> <clause class="indent3 fontsize10"><num value="v">(v) </num><content>efforts relating to the recruitment, hiring, and training of enumerators.</content></clause></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Any data or other information obtained by the Board under this section shall be made available to any committee or subcommittee of Congress of appropriate jurisdiction upon request of the chairman or ranking minority member of such committee or subcommittee. No such committee or subcommittee, or member thereof, shall disclose any information obtained under this paragraph which is submitted to it on a confidential basis unless the full committee determines that the withholding of that information is contrary to the national interest.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>The Board shall study and submit to Congress, as part of its first report under paragraph (1)(A), its findings and recommendations as to the feasibility and desirability of using postal personnel or private contractors to help carry out the decennial census.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><content>There is authorized to be appropriated $4,000,000 for each of fiscal years 1998 through 2001 to carry out this section.</content></subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num><content>To the extent practicable, members of the Board shall work to promote the most accurate and complete census possible by using their positions to publicize the need for full and timely responses to census questionnaires.</content></subsection> <subsection class="indent0 fontsize10"><num value="i">(i)</num><paragraph class="inline"><num value="1">(1) </num><chapeau>No individual described in paragraph (2) shall be eligible—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>to be appointed or to continue serving as a member of the Board or as a member of the staff thereof; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>to enter into any contract with the Board.</content></subparagraph></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote><chapeau>This subsection applies with respect to any individual who is serving or who has ever served—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>as the Director of the Census; or</content></subparagraph> <page identifier="/us/stat/111/2487">111 STAT. 2487</page> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><chapeau>with any committee or subcommittee of either House of Congress, having jurisdiction over any aspect of the decennial census, as—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>a Member of Congress; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>a congressional employee.</content></clause></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="j">(j) </num><content>The Board shall cease to exist on September 30, 2001.</content><sidenote><p class="indent0 firstIndent0 fontsize8">Termination date.</p></sidenote></subsection> <subsection class="indent0 fontsize10"><num value="k">(k) </num><content>Section 9(a) of title 13, United States Code, is amended in the matter before paragraph (1) thereof by striking “<quotedText>of this title—</quotedText>” and inserting “<quotedText>of this title or section 210 of the Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1998—</quotedText>”.</content></subsection></section> <section><num value="211"><inline class="smallCaps">Sec.</inline> 211. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Section 401 of title 22, United States Code, is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in subsection (a), by adding after the first sentence the following: “The Secretary of Commerce may seize and detain any commodity (other than arms or munitions of war) or technology which is intended to be or is being exported in violation of laws governing such exports and may seize and detain any vessel, vehicle, or aircraft containing the same or which has been used or is being used in exporting or attempting to export such articles.”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in subsection (b), by adding after “and not inconsistent with the provisions hereof.” the following: “However, with respect to seizures and forfeitures of property under this section by the Secretary of Commerce, such duties as are imposed upon the customs officer or any other person with respect to the seizure and forfeiture of property under the customs law may be performed by such officers as are designated by the Secretary of Commerce or, upon the request of the Secretary of Commerce, by any other agency that has authority to manage and dispose of seized property.”.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 524(c)(11)(B) of title 28, United States Code, is amended by adding at the end thereof “or pursuant to the authority of the Secretary of Commerce”.</content></subsection></section> <section><num value="212"><inline class="smallCaps">Sec.</inline> 212. </num><content>Notwithstanding any other provision of law, the Economic Development Administration is directed to transfer funds obligated and awarded to the Butte-Silver Bow Consolidated Local Government as Project Number 05–01–02822 to the Butte Local Development Corporation Revolving Loan Fund to be administered by the Butte Local Development Corporation, such funds to remain available until expended. In accordance with section 1557 of title 31, United States Code, funds obligated and awarded in fiscal year 1994 under the heading “Economic Development Administration-Economic Development Assistance Programs” for Metropolitan Dade County, Florida, and subsequently transferred to Miami-Dade Community College for Project No. 04–49–04021 shall be exempt from subchapter IV of chapter 15 of such title and shall remain available for expenditure without fiscal year limitation. </content></section> </level><continuation class="indent0 firstIndent1 fontsize10">This title may be cited as the “<shortTitle role="title">Department of Commerce and Related Agencies Appropriations Act, 1998</shortTitle>”.</continuation> <page identifier="/us/stat/111/2488">111 STAT. 2488</page> <num value="I">TITLE III—</num><sidenote><p class="indent0 firstIndent0 fontsize8">The Judiciary Appropriations Act, 1998.</p></sidenote> <heading>THE JUDICIARY</heading> <appropriations level="intermediate"> <heading>Supreme Court of the United States</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For expenses necessary for the operation of the Supreme Court, as required by law, excluding care of the building and grounds, including purchase or hire, driving, maintenance, and operation of an automobile for the Chief Justice, not to exceed $10,000 for the purpose of transporting Associate Justices, and hire of passenger motor vehicles as authorized by 31 U.S.C. 1343 and 1344; not to exceed $10,000 for official reception and representation expenses; and for miscellaneous expenses, to be expended as the Chief Justice may approve; $29,245,000.</content> </appropriations> <appropriations level="small"> <heading>care of the building and grounds</heading> <content>For such expenditures as may be necessary to enable the Architect of the Capitol to carry out the duties imposed upon him by the Act approved May 7, 1934 (40 U.S.C. 13a-13b), $3,400,000, of which $485,000 shall remain available until expended.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>United States Court of Appeals for the Federal Circuit</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For salaries of the chief judge, judges, and other officers and employees, and for necessary expenses of the court, as authorized by law, $15,575,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>United States Court of International Trade</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For salaries of the chief judge and eight judges, salaries of the officers and employees of the court, services as authorized by 5 U.S.C. 3109, and necessary expenses of the court, as authorized by law, $11,449,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Courts of Appeals, District Courts, and Other Judicial Services</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(including transfer of funds)</subheading> <content><p class="indent0 firstIndent1 fontsize10">For the salaries of circuit and district judges (including judges of the territorial courts of the United States), justices and judges retired from office or from regular active service, judges of the United States Court of Federal Claims, bankruptcy judges, magistrate judges, and all other officers and employees of the Federal Judiciary not otherwise specifically provided for, and necessary expenses of the courts, as authorized by law, $2,682,400,000 (including the purchase of firearms and ammunition); of which not to exceed $13,454,000 shall remain available until expended for space alteration projects; of which $900,000 shall be transferred to the Commission on Structural Alternatives for the Federal Courts of Appeals, to remain available until expended; and of which not <page identifier="/us/stat/111/2489">111 STAT. 2489</page>to exceed $10,000,000 shall remain available until expended for furniture and furnishings related to new space alteration and construction projects.</p> <p class="indent0 firstIndent1 fontsize10">In addition, for expenses of the United States Court of Federal Claims associated with processing cases under the National Childhood Vaccine Injury Act of 1986, not to exceed $2,450,000, to be appropriated from the Vaccine Injury Compensation Trust Fund.</p></content> </appropriations> <appropriations level="small"> <heading>violent crime reduction programs</heading> <content>For activities of the Federal Judiciary as authorized by law, $40,000,000, to remain available until expended, which shall be derived from the Violent Crime Reduction Trust Fund, as authorized by section 190001(a) of Public Law 103–322, and sections 818 and 823 of Public Law 104–132.</content> </appropriations> <appropriations level="small"> <heading>defender services</heading> <content>For the operation of Federal Public Defender and Community Defender organizations; the compensation and reimbursement of expenses of attorneys appointed to represent persons under the Criminal Justice Act of 1964, as amended; the compensation and reimbursement of expenses of persons furnishing investigative, expert and other services under the Criminal Justice Act (18 U.S.C. 3006A(e)); the compensation (in accordance with Criminal Justice Act maximums) and reimbursement of expenses of attorneys appointed to assist the court in criminal cases where the defendant has waived representation by counsel; the compensation and reimbursement of travel expenses of guardians ad litem acting on behalf of financially eligible minor or incompetent offenders in connection with transfers from the United States to foreign countries with which the United States has a treaty for the execution of penal sentences; and the compensation of attorneys appointed to represent jurors in civil actions for the protection of their employment, as authorized by 28 U.S.C. 1875(d); $329,529,000, to remain available until expended as authorized by 18 U.S.C. 3006A(i).</content> </appropriations> <appropriations level="small"> <heading>fees of jurors and commissioners</heading> <content>For fees and expenses of jurors as authorized by 28 U.S.C. 1871 and 1876; compensation of jury commissioners as authorized by 28 U.S.C. 1863; and compensation of commissioners appointed in condemnation cases pursuant to rule 71A(h) of the Federal Rules of Civil Procedure (28 U.S.C. Appendix Rule 71A(h)); $64,438,000, to remain available until expended: <proviso><i>Provided,</i> That the compensation of land commissioners shall not exceed the daily equivalent of the highest rate payable under section 5332 of title 5, United States Code</proviso>.</content> </appropriations> <appropriations level="small"> <heading>court security</heading> <content>For necessary expenses, not otherwise provided for, incident to the procurement, installation, and maintenance of security equipment and protective services for the United States Courts in courtrooms and adjacent areas, including building ingress-egress control, inspection of packages, directed security patrols, and other similar activities as authorized by section 1010 of the Judicial Improvement and Access to Justice Act (Public Law 100–702); <page identifier="/us/stat/111/2490">111 STAT. 2490</page>$167,214,000, of which not to exceed $10,000,000 shall remain available until expended for security systems, to be expended directly or transferred to the United States Marshals Service which shall be responsible for administering elements of the Judicial Security Program consistent with standards or guidelines agreed to by the Director of the Administrative Office of the United States Courts and the Attorney General.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Administrative Office of the United States Courts</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Administrative Office of the United States Courts as authorized by law, including travel as authorized by 31 U.S.C. 1345, hire of a passenger motor vehicle as authorized by 31 U.S.C. 1343(b), advertising and rent in the District of Columbia and elsewhere, $52,000,000, of which not to exceed $7,500 is authorized for official reception and representation expenses.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Federal Judicial Center</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Federal Judicial Center, as authorized by Public Law 90–219, $17,495,000; of which $1,800,000 shall remain available through September 30, 1999, to provide education and training to Federal court personnel; and of which not to exceed $1,000 is authorized for official reception and representation expenses.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Judicial Retirement Funds</heading> <appropriations level="small"> <heading>payment to judiciary trust funds</heading> <content>For payment to the Judicial Officers’ Retirement Fund, as authorized by 28 U.S.C. 377(o), $25,000,000; to the Judicial Survivors’ Annuities Fund, as authorized by 28 U.S.C. 376(c), $7,400,000; and to the United States Court of Federal Claims Judges’ Retirement Fund, as authorized by 28 U.S.C. 178(1), $1,800,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>United States Sentencing Commission</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For the salaries and expenses necessary to carry out the provisions of chapter 58 of title 28, United States Code, $9,240,000, of which not to exceed $1,000 is authorized for official reception and representation expenses.</content></appropriations> </appropriations> <level> <heading><inline class="smallCaps">General Provisions—The Judiciary</inline></heading> <section><num value="301"><inline class="smallCaps">Sec.</inline> 301. </num><content>Appropriations and authorizations made in this title which are available for salaries and expenses shall be available for services as authorized by 5 U.S.C. 3109.</content></section> <section><num value="302"><inline class="smallCaps">Sec.</inline> 302. </num><content>Not to exceed 5 percent of any appropriation made available for the current fiscal year for the Judiciary in this Act may be transferred between such appropriations, but no such appropriation, except “Courts of Appeals, District Courts, and Other Judicial Services, Defender Services” and “Courts of Appeals, District Courts, and Other <page identifier="/us/stat/111/2491">111 STAT. 2491</page>Judicial Services, Fees of Jurors and Commissioners”, shall be increased by more than 10 percent by any such transfers: <proviso><i>Provided,</i> That any transfer pursuant to this section shall be treated as a reprogramming of funds under section 605 of this Act and shall not be available for obligation or expenditure except in compliance with the procedures set forth in that section</proviso>.</content></section> <section><num value="303"><inline class="smallCaps">Sec.</inline> 303. </num><content>Notwithstanding any other provision of law, the salaries and expenses appropriation for district courts, courts of appeals, and other judicial services shall be available for official reception and representation expenses of the Judicial Conference of the United States: <proviso><i>Provided,</i> That such available funds shall not exceed $10,000 and shall be administered by the Director of the Administrative Office of the United States Courts in his capacity as Secretary of the Judicial Conference</proviso>.</content></section> <section><num value="304"><inline class="smallCaps">Sec.</inline> 304. </num><content>Section 612 of title 28, United States Code, shall be amended by striking out subsection (1).</content></section> <section><num value="305"><inline class="smallCaps">Sec.</inline> 305. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Commission on Structural Alternatives for 28 use 41 note. the Federal Courts of Appeals</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Establishment and functions of commission.</inline>—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><heading><inline class="smallCaps">Establishment</inline>.—</heading><content>There is established a Commission on Structural Alternatives for the Federal Courts of Appeals (hereinafter referred to as the “Commission”).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><heading><inline class="smallCaps">Functions</inline>.—</heading><chapeau>The functions of the Commission shall be to—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>study the present division of the United States into the several judicial circuits;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>study the structure and alignment of the Federal Court of Appeals system, with particular reference to the Ninth Circuit; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii) </num><content>report to the President and the Congress its <sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote>recommendations for such changes in circuit boundaries or structure as may be appropriate for the expeditious and effective disposition of the caseload of the Federal Courts of Appeals, consistent with fundamental concepts of fairness and due process.</content></clause></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Membership.—</inline></heading> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><heading><inline class="smallCaps">Composition</inline>.—</heading><content>The Commission shall be composed of five members who shall be appointed by the Chief Justice of the United States.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><heading><inline class="smallCaps">Appointment</inline>.—</heading><content>The members of the Commission shall be appointed within 30 days after the date of enactment of this Act.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><heading><inline class="smallCaps">Vacancy</inline>.—</heading><content>Any vacancy in the Commission shall be filled in the same manner as the original appointment.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><heading><inline class="smallCaps">Chair</inline>.—</heading><content>The Commission shall elect a chair and vice chair from among its members.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E) </num><heading><inline class="smallCaps">Quorum</inline>.—</heading><content>Three members of the Commission shall constitute a quorum, but two may conduct hearings.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Compensation</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>Members of the Commission who are officers, or full-time employees, of the United States shall receive no additional compensation for their services, but shall be reimbursed for travel, subsistence, and other necessary expenses incurred in the performance of duties <page identifier="/us/stat/111/2492">111 STAT. 2492</page>vested in the Commission, but not in excess of the maximum amounts authorized under section 456 of title 28, United States Code.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><heading><inline class="smallCaps">Private members</inline>.—</heading><content>Members of the Commission from private life shall receive $200 for each day (including travel time) during which the member is engaged in the actual performance of duties, but not in excess of the maximum amounts authorized under section 456 of title 28, United States Code.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><heading><inline class="smallCaps">Personnel</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><heading><inline class="smallCaps">Executive director</inline>.—</heading><content>The Commission may appoint an Executive Director who shall receive compensation at a rate not exceeding the rate prescribed for level V of the Executive Schedule under section 5316 of title 5, United States Code.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><heading><inline class="smallCaps">Staff</inline>.—</heading><content>The Executive Director, with the approval of the Commission, may appoint and fix the compensation of such additional personnel as the Executive Director determines necessary, without regard to the provisions of title 5, United States Code, governing appointments in the competitive service or the provisions of chapter 51 and subchapter III of chapter 53 of such title relating to classification and General Schedule pay rates. Compensation under this paragraph shall not exceed the annual maximum rate of basic pay for a position above GS-15 of the General Schedule under section 5108 of title 5, United States Code.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><heading><inline class="smallCaps">Experts and consultants</inline>.—</heading><content>The Executive Director may procure personal services of experts and consultants as authorized by section 3109 of title 5, United States Code, at rates not to exceed the highest level payable under the General Schedule pay rates under section 5332 of title 5, United States Code.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><heading><inline class="smallCaps">Services</inline>.—</heading><content>The Administrative Office of the United States Courts shall provide administrative services, including financial and budgeting services, to the Commission on a reimbursable basis. The Federal Judicial Center shall provide necessary research services to the Commission on a reimbursable basis.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><heading><inline class="smallCaps">Information</inline>.—</heading><content>The Commission is authorized to request from any department, agency, or independent instrumentality of the Government any information and assistance the Commission determines necessary to carry out its functions under this section. Each such department, agency, and independent instrumentality is authorized to provide such information and assistance to the extent permitted by law when requested by the chair of the Commission.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><heading><inline class="smallCaps">Report.</inline>—</heading><content>The Commission shall conduct the studies required in this section during the 10-month period beginning on the date on which a quorum of the Commission has been appointed. Not later than 2 months following the completion of such 10-month period, the Commission shall submit its report <sidenote><p class="indent0 firstIndent0 fontsize8">Termination date.</p></sidenote>to the President and the Congress. The Commission shall terminate 90 days after the date of the submission of its report.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Authorization of Appropriations</inline>.—</heading><content>There are authorized to be appropriated to the Commission such sums, not to exceed $900,000, as may be necessary to carry out the purposes of this <page identifier="/us/stat/111/2493">111 STAT. 2493</page>section. Such sums as are appropriated shall remain available until expended.</content></subsection></section> <section><num value="306"><inline class="smallCaps">Sec.</inline> 306. </num><content>Pursuant to section 140 of Public Law 97–92, justices <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t28/s461">28 USC 461</ref> note.</p></sidenote> and judges of the United States are authorized during fiscal year 1998, to receive a salary adjustment in accordance with 28 U.S.C. 461: <proviso><i>Provided,</i> That $5,000,000 is appropriated for salary adjustments pursuant to this section and such funds shall be transferred to and merged with appropriations in title III of this Act</proviso>.</content></section> <section><num value="307"><inline class="smallCaps">Sec.</inline> 307. </num><content>Section 44(c) of title 28, United States Code, is amended by adding at the end thereof the following sentence: “In each circuit (other than the Federal judicial circuit) there shall be at least one circuit judge in regular active service appointed from the residents of each state in that circuit.”.</content></section> <section><num value="308"><inline class="smallCaps">Sec.</inline> 308. </num><content>Section 3006A(d) of title 18, United States Code, is amended by striking paragraph (4) and inserting the following: <quotedContent><paragraph class="indent1 fontsize10"><num value="4">“(4) </num><heading><inline class="smallCaps">Disclosure of fees</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>Subject to subparagraphs (B) through (E), the amounts paid under this subsection for services in any case shall be made available to the public by the court upon the court’s approval of the payment.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><heading><inline class="smallCaps">Pre-trial or trial in progress</inline>.—</heading><chapeau>If a trial is in pre-trial status or still in progress and after considering the defendant’s interests as set forth in subparagraph (D), the court shall—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>redact any detailed information on the payment voucher provided by defense counsel to justify the expenses to the court; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><chapeau>make public only the amounts approved for payment to defense counsel by dividing those amounts into the following categories:</chapeau> <subclause class="indent4 fontsize10"><num value="I">“(I) </num><content>Arraignment and or plea.</content></subclause> <subclause class="indent4 fontsize10"><num value="II">“(II) </num><content>Bail and detention hearings.</content></subclause> <subclause class="indent4 fontsize10"><num value="III">“(III) </num><content>Motions.</content></subclause> <subclause class="indent4 fontsize10"><num value="IV">“(IV) </num><content>Hearings.</content></subclause> <subclause class="indent4 fontsize10"><num value="V">“(V) </num><content>Interviews and conferences.</content></subclause> <subclause class="indent4 fontsize10"><num value="VI">“(VI) </num><content>Obtaining and reviewing records.</content></subclause> <subclause class="indent4 fontsize10"><num value="VII">“(VII) </num><content>Legal research and brief writing.</content></subclause> <subclause class="indent4 fontsize10"><num value="VIII">“(VIII) </num><content>Travel time.</content></subclause> <subclause class="indent4 fontsize10"><num value="IX">“(IX) </num><content>Investigative work.</content></subclause> <subclause class="indent4 fontsize10"><num value="X">“(X) </num><content>Experts.</content></subclause> <subclause class="indent4 fontsize10"><num value="XI">“(XI) </num><content>Trial and appeals.</content></subclause> <subclause class="indent4 fontsize10"><num value="XII">“(XII) </num><content>Other.</content></subclause></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><heading><inline class="smallCaps">Trial completed</inline>.—</heading> <clause class="indent3 fontsize10"><num value="i">“(i) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>If a request for payment is not submitted until after the completion of the trial and subject to consideration of the defendant’s interests as set forth in subparagraph (D), the court shall make available to the public an unredacted copy of the expense voucher.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><heading><inline class="smallCaps">Protection of the rights of the defendant</inline>.—</heading><content>If the court determines that defendant’s interests as set forth in subparagraph (D) require a limited disclosure, the court shall disclose amounts as provided in subparagraph (B).</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><heading><inline class="smallCaps">Considerations</inline>.—</heading><chapeau>The interests referred to in subparagraphs (B) and (C) are—</chapeau> <page identifier="/us/stat/111/2494">111 STAT. 2494</page> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>to protect any person’s 5th amendment right against self-incrimination;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>to protect the defendant’s 6th amendment rights to effective assistance of counsel;</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><content>the defendant’s attorney-client privilege;</content></clause> <clause class="indent3 fontsize10"><num value="iv">“(iv) </num><content>the work product privilege of the defendant’s counsel;</content></clause> <clause class="indent3 fontsize10"><num value="v">“(v) </num><content>the safety of any person; and</content></clause> <clause class="indent3 fontsize10"><num value="vi">“(vi) </num><content>any other interest that justice may require.</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">“(E) </num><heading><inline class="smallCaps">Notice.</inline>—</heading><content>The court shall provide reasonable notice of disclosure to the counsel of the defendant prior to the approval of the payments in order to allow the counsel to request redaction based on the considerations set forth in subparagraph (D). Upon completion of the trial, the court shall release unredacted copies of the vouchers provided by defense counsel to justify the expenses to the court. If there is an appeal, the court shall not release unredacted copies of the vouchers provided by defense counsel to justify the expenses to the court until such time as the appeals process is completed, unless the court determines that none of the defendant’s interests set forth in subparagraph (D) will be compromised.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">“(F) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote><heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendment made by paragraph (4) shall become effective 60 days after enactment of this Act, will apply only to cases filed on or after the effective date, and shall be in effect for no longer than 24 months after the effective date.”</content></subparagraph> <continuation class="indent0 firstIndent1 fontsize10">This title may be cited as “<shortTitle role="title">The Judiciary Appropriations Act, 1998</shortTitle>”.</continuation></paragraph></quotedContent></content></section> </level> <num value="I">TITLE IV—</num><sidenote><p class="indent0 firstIndent0 fontsize8">Department of State and Related Agencies Appropriations Act, 1998.</p></sidenote> <heading>DEPARTMENT OF STATE AND RELATED AGENCIES</heading> <appropriations level="major"> <heading>DEPARTMENT OF STATE</heading> <appropriations level="intermediate"> <heading>Administration of Foreign Affairs</heading> <appropriations level="small"> <heading>diplomatic and consular programs</heading> <content><p class="indent0 firstIndent1 fontsize10">For necessary expenses of the Department of State and the Foreign Service not otherwise provided for, including expenses authorized by the State Department Basic Authorities Act of 1956, as amended; representation to certain international organizations in which the United States participates pursuant to treaties, ratified pursuant to the advice and consent of the Senate, or specific Acts of Congress; acquisition by exchange or purchase of passenger motor vehicles as authorized by 31 U.S.C. 1343, 40 U.S.C. 481(c), and 22 U.S.C. 2674; and for expenses of general administration; $1,705,600,000: <proviso><i>Provided,</i> That of the amount made available under this heading, not to exceed $4,000,000 may be transferred to, and merged with, funds in the “Emergencies in the Diplomatic and Consular Service” appropriations account, to be available only for emergency evacuations and terrorism rewards</proviso>: <proviso><i>Provided further</i>, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1351">8 USC 1351</ref> note.</p></sidenote>That notwithstanding section 140(a)(5), and the second sentence of section 140(a)(3), of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995 (Public Law 103–236), fees may be collected during fiscal years 1998 and 1999 under the authority of section 140(a)(1) of that Act</proviso>: <i>Provided further</i>, That all fees <page identifier="/us/stat/111/2495">111 STAT. 2495</page>collected under the preceding proviso shall be deposited in fiscal years 1998 and 1999 as an offsetting collection to appropriations made under this heading to recover costs as set forth under section 140(a)(2) of that Act and shall remain available until expended.</p> <p class="indent0 firstIndent1 fontsize10">In addition to funds otherwise available, of the funds provided under this heading, $24,856,000 shall be available only for the Diplomatic Telecommunications Service for operation of existing base services and $17,312,000 shall be available only for the enhancement of the Diplomatic Telecommunications Service and shall remain available until expended.</p> <p class="indent0 firstIndent1 fontsize10">In addition, not to exceed $700,000 in registration fees collected pursuant to section 38 of the Arms Export Control Act, as amended, may be used in accordance with section 45 of the State Department Basic Authorities Act of 1956 (22 U.S.C. 2717); in addition not to exceed $1,252,000 shall be derived from fees collected from other executive agencies for lease or use of facilities located at the International Center in accordance with section 4 of the International Center Act (Public Law 90–553), as amended, and in addition, as authorized by section 5 of such Act $490,000, to be derived from the reserve authorized by that section, to be used for the purposes set out in that section; and in addition not to exceed $15,000 which shall be derived from reimbursements, surcharges, and fees for use of Blair House facilities in accordance with section 46 of the State Department Basic Authorities Act of 1956 (22 U.S.C. 2718(a)).</p> <p class="indent0 firstIndent1 fontsize10">Notwithstanding section 402 of this Act, not to exceed 20 percent of the amounts made available in this Act in the appropriation accounts “Diplomatic and Consular Programs” and “Salaries and Expenses” under the heading “Administration of Foreign Affairs” may be transferred between such appropriation accounts: <proviso><i>Provided</i>, That any transfer pursuant to this sentence shall be treated as a reprogramming of funds under section 605 of this Act and shall not be available for obligation or expenditure except in compliance with the procedures set forth in that section</proviso>.</p> <p class="indent0 firstIndent1 fontsize10">In addition, for counterterrorism requirements overseas, including security guards and equipment, $23,700,000, to remain available until expended.</p></content> </appropriations> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For expenses necessary for the general administration of the Department of State and the Foreign Service, provided for by law, including expenses authorized by section 9 of the Act of August 31, 1964, as amended (31 U.S.C. 3721), and the State Department Basic Authorities Act of 1956, as amended, $363,513,000.</content> </appropriations> <appropriations level="small"> <heading>capital investment fund</heading> <content>For necessary expenses of the Capital Investment Fund, $86,000,000, to remain available until expended, as authorized in Public Law 103–236: <proviso><i>Provided</i>, That section 135(e) of Public Law 103–236 shall not apply to funds available under this heading</proviso>.</content> </appropriations> <appropriations level="small"> <heading>office of inspector general</heading> <content>For necessary expenses of the Office of Inspector General in carrying out the provisions of the Inspector General Act of 1978, as amended (5 U.S.C. App.), $27,495,000, notwithstanding section <page identifier="/us/stat/111/2496">111 STAT. 2496</page>209(a)(1) of the Foreign Service Act of 1980, as amended (Public Law 96–465), as it relates to post inspections.</content> </appropriations> <appropriations level="small"> <heading>representation allowances</heading> <content>For representation allowances as authorized by section 905 of the Foreign Service Act of 1980, as amended (22 U.S.C. 4085), $4,200,000.</content> </appropriations> <appropriations level="small"> <heading>protection of foreign missions and officials</heading> <content>For expenses, not otherwise provided, to enable the Secretary of State to provide for extraordinary protective services in accordance with the provisions of section 214 of the State Department Basic Authorities Act of 1956 (22 U.S.C. 4314) and 3 U.S.C. 208, $7,900,000, to remain available until September 30, 1999.</content> </appropriations> <appropriations level="small"> <heading>security and maintenance of united states missions</heading> <content>For necessary expenses for carrying out the Foreign Service Buildings Act of 1926, as amended (22 U.S.C. 292–300), preserving, maintaining, repairing, and planning for, buildings that are owned or directly leased by the Department of State, and carrying out the Diplomatic Security Construction Program as authorized by title IV of the Omnibus Diplomatic Security and Antiterrorism Act of 1986 (22 U.S.C. 4851), $404,000,000, to remain available until expended as authorized by section 24(c) of the State Department Basic Authorities Act of 1956 (22 U.S.C. 2696(c)): <proviso><i>Provided</i>, That none of the funds appropriated in this paragraph shall be available for acquisition of furniture and furnishings and generators for other departments and agencies</proviso>.</content> </appropriations> <appropriations level="small"> <heading>emergencies in the diplomatic and consular service</heading> <content>For expenses necessary to enable the Secretary of State to meet unforeseen emergencies arising in the Diplomatic and Consular Service pursuant to the requirement of 31 U.S.C. 3526(e), $5,500,000 to remain available until expended as authorized by section 24(c) of the State Department Basic Authorities Act of 1956 (22 U.S.C. 2696(c)), of which not to exceed $1,000,000 may be transferred to and merged with the Repatriation Loans Program Account, subject to the same terms and conditions.</content> </appropriations> <appropriations level="small"> <heading>repatriation loans program account</heading> <content>For the cost of direct loans, $593,000, as authorized by section 4 of the State Department Basic Authorities Act of 1956 (22 U.S.C. 2671): <content><i>Provided</i>, That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974. In addition, for administrative expenses necessary to carry out the direct loan program, $607,000 which may be transferred to and merged with the Salaries and Expenses account under Administration of Foreign Affairs</content>.</content> </appropriations> <page identifier="/us/stat/111/2497">111 STAT. 2497</page> <appropriations level="small"> <heading>payment to the american institute in taiwan</heading> <content>For necessary expenses to carry out the Taiwan Relations Act, Public Law 96–8, $14,000,000.</content> </appropriations> <appropriations level="small"> <heading>payment to the foreign service retirement and disability fund</heading> <content>For payment to the Foreign Service Retirement and Disability Fund, as authorized by law, $129,935,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>International Organizations and Conferences</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s269a">22 USC 269a</ref> note.</p></sidenote> <appropriations level="small"> <heading>contributions to international organizations</heading> <content>For expenses, not otherwise provided for, necessary to meet annual obligations of membership in international multilateral organizations, pursuant to treaties ratified pursuant to the advice and consent of the Senate, conventions or specific Acts of Congress, $955,515,000, of which not to exceed $54,000,000 shall remain available until expended for payment of arrearages: <proviso><i>Provided,</i> That none of the funds appropriated or otherwise made available by this Act for payment of arrearages may be obligated or expended unless such obligation or expenditure is expressly authorized by the enactment of an Act that makes payment of arrearages contingent upon reforms that should include the following: (1) a reduction in the United States assessed share of the United Nations regular budget to 20 percent and of peacekeeping operations to 25 percent; (2) reimbursement for goods and services provided by the United States to the United Nations; (3) certification that the United Nations and its specialized or affiliated agencies have not taken any action to infringe on the sovereignty of the United States; (4) a ceiling on United States contributions to international organizations after fiscal year 1998 of $900,000,000; (5) establishment of a merit-based personnel system at the United Nations that includes a code of conduct and a personnel evaluation system; (6) United States membership on the Advisory Committee on Administrative and Budgetary Questions that oversees the United Nations budget; (7) access to United Nations financial data by the General Accounting Office; (8) achievement of a negative growth budget and the establishment of independent inspectors general for affiliated organizations; and (9) improved consultation procedures with the Congress</proviso>: <proviso><i>Provided further</i>, That any payment of arrearages shall be directed toward special activities that are mutually agreed upon by the United States and the respective international organization</proviso>: <proviso><i>Provided further</i>, That 20 percent of the funds appropriated in this paragraph for the assessed contribution of the United States to the United Nations shall be withheld from obligation and expenditure until a certification is made under section 401(b) of Public Law 103–236 and under such other requirements related to the Office of Internal Oversight Services of the United Nations as may be enacted into law for fiscal year 1998</proviso>: <proviso><i>Provided further</i>, That certification under section 401(b) of Public Law 103–236 for fiscal year 1998 may only be made if the Committees on Appropriations and Foreign Relations of the Senate and the Committees on Appropriations and International Relations of the House of Representatives are notified of the steps taken, and anticipated, to meet the requirements of section 401(b) of Public Law 103–236 at least 15 days in advance of the proposed certification</proviso>: <proviso><i>Provided further</i>, That none of the funds appropriated in this paragraph shall be available for a United States contribution to an international organization for the United States share of interest costs made known to the United States Government by <page identifier="/us/stat/111/2498">111 STAT. 2498</page>such organization for loans incurred on or after October 1, 1984, through external borrowings</proviso>: <proviso><i>Provided further</i>, That of the funds appropriated in this paragraph, $100,000,000 may be made available only on a semiannual basis pursuant to a certification by the Secretary of State on a semiannual basis, that the United Nations has taken no action during the preceding six months to increase funding for any United Nations program without identifying an offsetting decrease during that six-month period elsewhere in the United Nations budget and cause the United Nations to exceed the expected reform budget for the biennium 1998–1999 of $2,533,000,000</proviso>: <proviso><i>Provided further</i>, That not to exceed $12,000,000 shall be transferred from funds made available under this heading to the “International Conferences and Contingencies” account for United States contributions to the Comprehensive Nuclear Test Ban Treaty Preparatory Commission, provided that such transferred funds are obligated or expended only for Commission meetings and sessions, provisional technical secretariat salaries and expenses, other Commission administrative and training activities, including purchase of training equipment, and upgrades to existing internationally based monitoring systems involved in cooperative data sharing agreements with the United States as of the date of enactment of this Act, until the United States Senate ratifies the Comprehensive Nuclear Test Ban Treaty</proviso>.</content> </appropriations> <appropriations level="small"> <heading>contributions for international peacekeeping activities</heading> <content>For necessary expenses to pay assessed and other expenses of international peacekeeping activities directed to the maintenance or restoration of international peace and security, $256,000,000, of which not to exceed $46,000,000 shall remain available until expended for payment of arrearages: <proviso><i>Provided,</i> That none of the funds appropriated or otherwise made available by this Act for payment of arrearages may be obligated or expended unless such obligation or expenditure is expressly authorized by the enactment of an Act described in the first proviso under the heading “Contributions to International Organizations” in this title</proviso>: <proviso><i>Provided further</i>, That none of the funds made available under this Act shall be obligated or expended for any new or expanded United Nations peacekeeping mission unless, at least 15 days in advance of voting for the new or expanded mission in the United Nations Security Council (or in an emergency, as far in advance as is practicable): <sidenote><p class="indent0 firstIndent0 fontsize8">Notification.</p></sidenote>(1) the Committees on Appropriations of the House of Representatives and the Senate and other appropriate committees of the Congress are notified of the estimated cost and length of the mission, the vital national interest that will be served, and the planned exit strategy; and (2) a reprogramming of funds pursuant to section 605 of this Act is submitted, and the procedures therein followed, setting forth the source of funds that will be used to pay for the cost of the new or expanded mission</proviso>: <proviso><i>Provided further</i>, That funds shall be available for peacekeeping expenses only upon a certification by the Secretary of State to the appropriate committees of the Congress that American manufacturers and suppliers are being given opportunities to provide equipment, services, and material for United Nations peacekeeping activities equal to those being given to foreign manufacturers and suppliers</proviso>.</content> </appropriations> </appropriations> <page identifier="/us/stat/111/2499">111 STAT. 2499</page> <appropriations level="intermediate"> <heading>International Commissions</heading> <content>For necessary expenses, not otherwise provided for, to meet <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s269a">22 USC 269a</ref> note.</p></sidenote>obligations of the United States arising under treaties, or specific Acts of Congress, as follows:</content> </appropriations> <appropriations level="small"> <heading>international boundary and water commission, united states and mexico</heading> <content>For necessary expenses for the United States Section of the International Boundary and Water Commission, United States and Mexico, and to comply with laws applicable to the United States Section, including not to exceed $6,000 for representation; as follows:</content> </appropriations> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For salaries and expenses, not otherwise provided for, $17,490,000.</content> </appropriations> <appropriations level="small"> <heading>construction</heading> <content>For detailed plan preparation and construction of authorized projects, $6,463,000, to remain available until expended, as authorized by section 24(c) of the State Department Basic Authorities Act of 1956 (22 U.S.C. 2696(c)).</content> </appropriations> <appropriations level="small"> <heading>american sections, international commissions</heading> <content>For necessary expenses, not otherwise provided for the International Joint Commission and the International Boundary Commission, United States and Canada, as authorized by treaties between the United States and Canada or Great Britain, and for the Border Environment Cooperation Commission as authorized by Public Law 103–182, $5,490,000, of which not to exceed $9,000 shall be available for representation expenses incurred by the International Joint Commission.</content> </appropriations> <appropriations level="small"> <heading>international fisheries commissions</heading> <content>For necessary expenses for international fisheries commissions, not otherwise provided for, as authorized by law, $14,549,000: <proviso><i>Provided,</i> That the United States’ share of such expenses may be advanced to the respective commissions, pursuant to 31 U.S.C. 3324</proviso>.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Other</heading> <appropriations level="small"> <heading>payment to the asia foundation</heading> <content>For a grant to the Asia Foundation, as authorized by section 501 of Public Law 101–246, $8,000,000, to remain available until expended, as authorized by section 24(c) of the State Department Basic Authorities Act of 1956 (22 U.S.C. 2696(c)).</content> </appropriations> </appropriations> <page identifier="/us/stat/111/2500">111 STAT. 2500</page> <appropriations level="major"> <heading>RELATED AGENCIES</heading> <appropriations level="intermediate"> <heading>Arms Control and Disarmament Agency</heading> <appropriations level="small"> <heading>arms control and disarmament activities</heading> <content>For necessary expenses not otherwise provided, for arms control, nonproliferation, and disarmament activities, $41,500,000, of which not to exceed $50,000 shall be for official reception and representation expenses as authorized by the Act of September 26, 1961, as amended (22 U.S.C. 2551 et seq.).</content> </appropriations> <appropriations level="small"> <heading>(rescission)</heading> <content>Of the unexpended balances previously appropriated under this heading, $700,000 are rescinded.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>United States Information Agency</heading> <appropriations level="small"> <heading>international information programs</heading> <content>For expenses, not otherwise provided for, necessary to enable the United States Information Agency, as authorized by the Mutual Educational and Cultural Exchange Act of 1961, as amended (22 U.S.C. 2451 et seq.), the United States Information and Educational Exchange Act of 1948, as amended (22 U.S.C. 1431 et seq.), and Reorganization Plan No. 2 of 1977 (91 Stat. 1636), to carry out international communication, educational and cultural activities; and to carry out related activities authorized by law, including employment, without regard to civil service and classification laws, of persons on a temporal basis (not to exceed $700,000 of this appropriation), as authorized by section 801 of such Act of 1948 (22 U.S.C. 1471), and entertainment, including official receptions, within the United States, not to exceed $25,000 as authorized by section 804(3) of such Act of 1948 (22 U.S.C. 1474(3)); $427,097,000: <proviso><i>Provided,</i> That not to exceed $1,400,000 may be used for representation abroad as authorized by section 302 of such Act of 1948 (22 U.S.C. 1452) and section 905 of the Foreign Service Act of 1980 (22 U.S.C. 4085)</proviso>: <proviso><i>Provided further</i>, That not to exceed $6,000,000, to remain available until expended, may be credited to this appropriation from fees or other payments received from or in connection with English teaching, library, motion pictures, and publication programs as authorized by section 810 of such Act of 1948 (22 U.S.C. 1475e) and, notwithstanding any other law, fees from educational advising and counseling, and exchange visitor program services</proviso>: <proviso><i>Provided further</i>, That not to exceed $920,000 to remain available until expended may be used to carry out projects involving security construction and related improvements for agency facilities not physically located together with Department of State facilities abroad</proviso>.</content> </appropriations> <appropriations level="small"> <heading>technology fund</heading> <content>For expenses necessary to enable the United States Information Agency to provide for the procurement of information technology improvements, as authorized by the United States Information and Educational Exchange Act of 1948, as amended (22 U.S.C. 1431 et seq.), the Mutual Educational and Cultural Exchange Act of 1961, as amended (22 U.S.C. 2451 et seq.), and Reorganization <page identifier="/us/stat/111/2501">111 STAT. 2501</page>Plan No. 2 of 1977 (91 Stat. 1636), $5,050,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>educational and cultural exchange programs</heading> <content>For expenses of educational and cultural exchange programs, as authorized by the Mutual Educational and Cultural Exchange Act of 1961, as amended (22 U.S.C. 2451 et seq.), and Reorganization Plan No. 2 of 1977 (91 Stat. 1636), $197,731,000, to remain available until expended as authorized by section 105 of such Act of 1961 (22 U.S.C. 2455): <proviso><i>Provided</i>, That not to exceed $800,000, to remain available until expended, may be credited to this appropriation from fees or other payments received from or in connection with English teaching and publication programs as authorized by section 810 of the United States Information and Educational Exchange Act of 1948 (22 U.S.C. 1475e) and, notwithstanding any other provision of law, fees from educational advising and counseling</proviso>.</content> </appropriations> <appropriations level="small"> <heading>eisenhower exchange fellowship program trust fund</heading> <content>For necessary expenses of Eisenhower Exchange Fellowships, Incorporated, as authorized by sections 4 and 5 of the Eisenhower Exchange Fellowship Act of 1990 (20 U.S.C. 5204–5205), all interest and earnings accruing to the Eisenhower Exchange Fellowship Program Trust Fund on or before September 30, 1998, to remain available until expended: <proviso><i>Provided</i>, That none of the funds appropriated herein shall be used to pay any salary or other compensation, or to enter into any contract providing for the payment thereof, in excess of the rate authorized by 5 U.S.C. 5376; or for purposes which are not in accordance with OMB Circulars A-110 (Uniform Administrative Requirements) and A-122 (Cost Principles for Nonprofit Organizations), including the restrictions on compensation for personal services</proviso>.</content> </appropriations> <appropriations level="small"> <heading>israeli arab scholarship program</heading> <content>For necessary expenses of the Israeli Arab Scholarship Program as authorized by section 214 of the Foreign Relations Authorization Act, Fiscal Years 1992 and 1993 (22 U.S.C. 2452), all interest and earnings accruing to the Israeli Arab Scholarship Fund on or before September 30, 1998, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>international broadcasting operations</heading> <content>For expenses necessary to enable the United States Information Agency, as authorized by the United States Information and Educational Exchange Act of 1948, as amended, the United States International Broadcasting Act of 1994, as amended, and Reorganization Plan No. 2 of 1977, to carry out international communication activities, $364,415,000, of which $12,100,000 shall remain available until expended, not to exceed $16,000 may be used for official receptions within the United States as authorized by section 804(3) of such Act of 1948 (22 U.S.C. 1747(3)), not to exceed $35,000 may be used for representation abroad as authorized by section 302 of such Act of 1948 (22 U.S.C. 1452) and section 905 of the Foreign Service Act of 1980 (22 U.S.C. 4085), and not to exceed $39,000 may be used for official reception and representation <page identifier="/us/stat/111/2502">111 STAT. 2502</page>expenses of Radio Free Europe/Radio Liberty; and in addition, notwithstanding any other provision of law, not to exceed $2,000,000 in receipts from advertising and revenue from business ventures, not to exceed $500,000 in receipts from cooperating international organizations, and not to exceed $1,000,000 in receipts from privatization efforts of the Voice of America and the International Broadcasting Bureau, to remain available until expended for carrying out authorized purposes.</content> </appropriations> <appropriations level="small"> <heading>broadcasting to cuba</heading> <content>For expenses necessary to enable the United States Information Agency to carry out the Radio Broadcasting to Cuba Act, as amended, the Television Broadcasting to Cuba Act, and the International Broadcasting Act of 1994, including the purchase, rent, construction, and improvement of facilities for radio and television transmission and reception, and purchase and installation of necessary equipment for radio and television transmission and reception, $22,095,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>radio construction</heading> <content>For the purchase, rent, construction, and improvement of facilities for radio transmission and reception, and purchase and installation of necessary equipment for radio and television transmission and reception as authorized by section 801 of the United States Information and Educational Exchange Act of 1948 (22 U.S.C. 1471), $40,000,000, to remain available until expended, as authorized by section 704(a) of such Act of 1948 (22 U.S.C. 1477b(a)).</content> </appropriations> <appropriations level="small"> <heading>east-west center</heading> <content>To enable the Director of the United States Information Agency to provide for carrying out the provisions of the Center for Cultural and Technical Interchange Between East and West Act of 1960 (22 U.S.C. 2054–2057), by grant to the Center for Cultural and Technical Interchange Between East and West in the State of Hawaii, $12,000,000: <proviso><i>Provided</i>, That none of the funds appropriated herein shall be used to pay any salary, or enter into any contract providing for the payment thereof, in excess of the rate authorized by 5 U.S.C. 5376</proviso>.</content> </appropriations> <appropriations level="small"> <heading>north/south center</heading> <content>To enable the Director of the United States Information Agency to provide for carrying out the provisions of the North/South Center Act of 1991 (22 U.S.C. 2075), by grant to an educational institution in Florida known as the North/South Center, $1,500,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>national endowment for democracy</heading> <content>For grants made by the United States Information Agency to the National Endowment for Democracy as authorized by the National Endowment for Democracy Act, $30,000,000, to remain available until expended.</content> </appropriations> </appropriations> </appropriations> <page identifier="/us/stat/111/2503">111 STAT. 2503</page> <level> <heading><inline class="smallCaps">General Provisions—Department of State and Related Agencies</inline></heading> <section><num value="401"><inline class="smallCaps">Sec.</inline> 401. </num><content>Funds appropriated under this title shall be available, except as otherwise provided, for allowances and differentials as authorized by subchapter 59 of title 5, United States Code; for services as authorized by 5 U.S.C. 3109; and hire of passenger transportation pursuant to 31 U.S.C. 1343(b).</content></section> <section><num value="402"><inline class="smallCaps">Sec.</inline> 402. </num><content>Not to exceed 5 percent of any appropriation made available for the current fiscal year for the Department of State in this Act may be transferred between such appropriations, but no such appropriation, except as otherwise specifically provided, shall be increased by more than 10 percent by any such transfers: <proviso><i>Provided,</i> That not to exceed 5 percent of any appropriation made available for the current fiscal year for the United States Information Agency in this Act may be transferred between such appropriations, but no such appropriation, except as otherwise specifically provided, shall be increased by more than 10 percent by any such transfers: Provided further, That any transfer pursuant to this section shall be treated as a reprogramming of funds under section 605 of this Act and shall not be available for obligation or expenditure except in compliance with the procedures set forth in that section</proviso>.</content></section> <section><num value="403"><inline class="smallCaps">Sec.</inline> 403. </num><content>Funds appropriated by this Act for the United States Information Agency, the Arms Control and Disarmament Agency, and the Department of State may be obligated and expended notwithstanding section 701 of the United States Information and Educational Exchange Act of 1948 and section 313 of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995, section 53 of the Arms Control and Disarmament Act, and section 15 of the State Department Basic Authorities Act of 1956.</content></section> <section><num value="404"><inline class="smallCaps">Sec.</inline> 404. </num><subsection class="inline"><num value="a">(a)</num><paragraph class="inline"><num value="1">(1) </num><content>For purposes of implementing the International Cooperative Administrative Support Services program in fiscal year 1998, the amounts referred to in paragraph (2) shall be transferred in accordance with the provisions of subsection (b).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>Paragraph (1) applies to amounts made available by title IV of this Act under the heading “Administration of Foreign Affairs” as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>$108,932,000 of the amount made available under the paragraph “Diplomatic and Consular Programs”.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>$3,530,000 of the amount made available under the paragraph “Security and Maintenance of United States Missions”.</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>Funds transferred pursuant to subsection (a) shall be transferred to the specified appropriation, allocated to the specified account or accounts in the specified amount, be merged with funds in such account or accounts that are available for administrative support expenses of overseas activities, and be available for the same purposes, and subject to the same terms and conditions, as the funds with which merged, as follows:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>Appropriations for the legislative branch—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>for the Library of Congress, for salaries and expenses, $500,000; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>for the General Accounting Office, for salaries and expenses, $12,000.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Appropriations for the Office of the United States Trade Representative, for salaries and expenses, $302,000.</content></paragraph> <page identifier="/us/stat/111/2504">111 STAT. 2504</page> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Appropriations for the Department of Commerce, for the International Trade Administration, for operations and administration, $7,055,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><chapeau>Appropriations for the Department of Justice—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><chapeau>for legal activities—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>for general legal activities, for salaries and expenses, $194,000; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>for the United States Marshals Service, for salaries and expenses, $2,000;</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>for the Federal Bureau of Investigation, for salaries and expenses, $2,477,000;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>for the Drug Enforcement Administration, for salaries and expenses, $6,356,000; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>for the Immigration and Naturalization Service, for salaries and expenses, $1,313,000.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Appropriations for the United States Information Agency, for international information programs, $25,047,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>Appropriations for the Arms Control and Disarmament Agency, for arms control and disarmament activities, $1,247,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><chapeau>Appropriations to the President—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>for the Foreign Military Financing Program, for administrative costs, $6,660,000;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>for the Economic Support Fund, $336,000;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><chapeau>for the Agency for International Development—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>for operating expenses, $6,008,000;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>for the Urban and Environmental Credit Program, $54,000;</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii) </num><content>for the Development Assistance Fund, $124,000;</content></clause> <clause class="indent3 fontsize10"><num value="iv">(iv) </num><content>for the Development Fund for Africa, $526,000;</content></clause> <clause class="indent3 fontsize10"><num value="v">(v) </num><content>for assistance for the new independent states of the former Soviet Union, $818,000;</content></clause> <clause class="indent3 fontsize10"><num value="vi">(vi) </num><content>for assistance for Eastern Europe and the Baltic States, $283,000; and</content></clause> <clause class="indent3 fontsize10"><num value="vii">(vii) </num><content>for international disaster assistance, $306,000;</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>for the Peace Corps, $3,672,000; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E) </num><chapeau>for the Department of State—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>for international narcotics control, $1,117,000; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>for migration and refugee assistance, $394,000.</content></clause></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><chapeau>Appropriations for the Department of Defense—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><chapeau>for operation and maintenance—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>for operation and maintenance, Army, $4,394,000;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>for operation and maintenance, Navy, $1,824,000;</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii) </num><content>for operation and maintenance, Air Force, $1,603,000; and</content></clause> <clause class="indent3 fontsize10"><num value="iv">(iv) </num><content>for operation and maintenance, Defense-Wide, $21,993,000; and</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>for procurement, for other procurement, Air Force, $4,211,000.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><content>Appropriations for the American Battle Monuments Commission, for salaries and expenses, $210,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10) </num><chapeau>Appropriations for the Department of Agriculture—</chapeau> <page identifier="/us/stat/111/2505">111 STAT. 2505</page> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>for the Animal and Plant Health Inspection Service, for salaries and expenses, $932,000;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>for the Foreign Agricultural Service and General Sales Manager, $4,521,000; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>for the Agricultural Research Service, $16,000.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="11">(11) </num><chapeau>Appropriations for the Department of the Treasury—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>for the United States Customs Service, for salaries and expenses, $2,002,000;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>for departmental offices, for salaries and expenses, $804,000;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>for the Internal Revenue Service, for tax law enforcement, $662,000;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>for the Bureau of Alcohol, Tobacco, and Firearms, for salaries and expenses, $17,000;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E) </num><content>for the United States Secret Service, for salaries and expenses, $617,000; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F) </num><content>for the Comptroller of the Currency, for assessment funds, $29,000.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="12">(12) </num><chapeau>Appropriations for the Department of Transportation—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>for the Federal Aviation Administration, for operations, $1,594,000; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>for the Coast Guard, for operating expenses, $65,000.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="13">(13) </num><content>Appropriations for the Department of Labor, for departmental management, for salaries and expenses, $58,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="14">(14) </num><chapeau>Appropriations for the Department of Health and Human Services—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>for the National Institutes of Health, for the National Cancer Institute, $42,000;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>for the Office of the Secretary, for general departmental management, $71,000; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>for the Centers for Disease Control and Prevention, for disease control, research, and training, $522,000.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="15">(15) </num><content>Appropriations for the Social Security Administration, for administrative expenses, $370,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="16">(16) </num><chapeau>Appropriations for the Department of the Interior—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>for the United States Fish and Wildlife Service, for resource management, $12,000;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>for the United States Geological Survey, for surveys, investigations, and research, $80,000; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>for the Bureau of Reclamation, for water and related resources, $101,000.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="17">(17) </num><content>Appropriations for the Department of Veterans Affairs, for departmental administration, for general operating expenses, $453,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="18">(18) </num><content>Appropriations for the National Aeronautics and Space Administration, for mission support, $183,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="19">(19) </num><content>Appropriations for the National Science Foundation, for research and related activities, $39,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="20">(20) </num><content>Appropriations for the Federal Emergency Management Agency, for salaries and expenses, $4,000.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="21">(21) </num><chapeau>Appropriations for the Department of Energy—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>for departmental administration, $150,000; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>for atomic energy defense activities, for other defense activities, $54,000.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="22">(22) </num><content>Appropriations for the Nuclear Regulatory Commission, for salaries and expenses, $26,000.</content></paragraph></subsection> <page identifier="/us/stat/111/2506">111 STAT. 2506</page> <subsection class="indent0 fontsize10"><num value="c">(c)</num><paragraph class="inline"><num value="1">(1) </num><content>The amount in subsection (a)(2)(A) is reduced by $2,800,000.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Each amount in subsection (b) is reduced on a pro rata basis in the same proportion as $2,800,000 bears to $112,462,000, rounded to the nearest thousand.</content></paragraph></subsection></section> <section><num value="405"><inline class="smallCaps">Sec.</inline> 405.</num> <subsection class="inline"><num value="a">(a) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Border adjustment.</p></sidenote><content>An employee who regularly commutes from his or her place of residence in the continental United States to an official duty station in Canada or Mexico shall receive a border equalization adjustment equal to the amount of comparability payments under section 5304 of title 5, United States Code, that he or she would receive if assigned to an official duty station within the United States locality pay area closest to the employee’s official duty station.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>For purposes of this section, the term “employee” shall mean a person who—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>is an “employee” as defined under section 2105 of title 5, United States Code; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>is employed by the United States Department of State, the United States Information Agency, the United States Agency for International Development, or the International Joint Commission, except that the term shall not include members of the Foreign Service as defined by section 103 of the Foreign Service Act of 1980 (Public Law 96–465), section 3903 of title 22, United States Code.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>An equalization adjustment payable under this section shall be considered basic pay for the same purposes as are comparability payments under section 5304 of title 5, United States Code, and its implementing regulations.</content></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote><content>The agencies referenced in subsection (c)(2) are authorized to promulgate regulations to carry out the purposes of this section.</content></subsection> <continuation>This title may be cited as the “<shortTitle role="title">Department of State and Related Agencies Appropriations Act, 1998</shortTitle>”.</continuation></section> </level> <num value="V">TITLE V—</num><heading>RELATED AGENCIES</heading> <appropriations level="major"> <heading>DEPARTMENT OF TRANSPORTATION</heading> <appropriations level="intermediate"> <heading>Maritime Administration</heading> <appropriations level="intermediate"> <heading>operating-differential subsidies</heading> <subheading>(liquidation of contract authority)</subheading> <content>For the payment of obligations incurred for operating-differential subsidies, as authorized by the Merchant Marine Act, 1936, as amended, $51,030,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>maritime security program</heading> <content>For necessary expenses to maintain and preserve a U.S.-flag merchant fleet to serve the national security needs of the United States, $35,500,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>operations and training</heading> <content>For necessary expenses of operations and training activities authorized by law, $67,600,000: <i>Provided,</i> That reimbursements may be made to this appropriation from receipts to the “Federal <page identifier="/us/stat/111/2507">111 STAT. 2507</page>Ship Financing Fund” for administrative expenses in support of that program in addition to any amount heretofore appropriated.</content> </appropriations> <appropriations level="small"> <heading>maritime guaranteed loan (title xi) program account</heading> <content><p class="indent0 firstIndent1 fontsize10">For the cost of guaranteed loans, as authorized by the Merchant Marine Act, 1936, $32,000,000, to remain available until expended: <proviso><i>Provided</i>, That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974, as amended</proviso>: <proviso><i>Provided further</i>, That these funds are available to subsidize total loan principal, any part of which is to be guaranteed, not to exceed $1,000,000,000</proviso>.</p> <p class="indent0 firstIndent1 fontsize10">In addition, for administrative expenses to carry out the guaranteed loan program, not to exceed $3,725,000, which shall be transferred to and merged with the appropriation for Operations and Training.</p></content> </appropriations> <appropriations level="small"> <heading>administrative provisions—maritime administration</heading> <content><p class="indent0 firstIndent1 fontsize10">Notwithstanding any other provision of this Act, the Maritime Administration is authorized to furnish utilities and services and make necessary repairs in connection with any lease, contract, or occupancy involving Government property under control of the Maritime Administration, and payments received therefor shall be credited to the appropriation charged with the cost thereof: <proviso><i>Provided</i>, That rental payments under any such lease, contract, or occupancy for items other than such utilities, services, or repairs shall be covered into the Treasury as miscellaneous receipts</proviso>.</p> <p class="indent0 firstIndent1 fontsize10">No obligations shall be incurred during the current fiscal year from the construction fund established by the Merchant Marine Act, 1936, or otherwise, in excess of the appropriations and limitations contained in this Act or in any prior appropriation Act, and all receipts which otherwise would be deposited to the credit of said fund shall be covered into the Treasury as miscellaneous receipts.</p></content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Commission for the Preservation of America’s Heritage Abroad</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For expenses for the Commission for the Preservation of America’s Heritage Abroad, $250,000, as authorized by section 1303 of Public Law 99–83.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Commission on Civil Rights</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Commission on Civil Rights, including hire of passenger motor vehicles, $8,740,000: <proviso><i>Provided</i>, That not to exceed $50,000 may be used to employ consultants</proviso>: <proviso><i>Provided further</i>, That none of the funds appropriated in this paragraph shall be used to employ in excess of four full-time individuals under Schedule C of the Excepted Service exclusive of one special assistant for each Commissioner</proviso>: <proviso><i>Provided further</i>, That none of the funds appropriated in this paragraph shall be used to reimburse Commissioners for more than 75 billable days, with the exception of the chairperson who is permitted 125 billable days</proviso>.</content> </appropriations> </appropriations> <page identifier="/us/stat/111/2508">111 STAT. 2508</page> <appropriations level="intermediate"> <heading>Commission on Immigration Reform</heading> <heading>salaries and expenses</heading> <content>For necessary expenses of the Commission on Immigration Reform pursuant to section 141(f) of the Immigration Act of 1990, $459,000 to remain available until expended.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Commission on Security and Cooperation in Europe</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Commission on Security and Cooperation in Europe, as authorized by Public Law 94–304, $1,090,000, to remain available until expended as authorized by section 3 of Public Law 99–7.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Equal Employment Opportunity Commission</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Equal Employment Opportunity Commission as authorized by title VII of the Civil Rights Act of 1964, as amended (29 U.S.C. 206(d) and 621–634), the Americans with Disabilities Act of 1990, and the Civil Rights Act of 1991, including services as authorized by 5 U.S.C. 3109; hire of passenger motor vehicles as authorized by 31 U.S.C. 1343(b); non-monetary awards to private citizens; and not to exceed $27,500,000 for payments to State and local enforcement agencies for services to the Commission pursuant to title VII of the Civil Rights Act of 1964, as amended, sections 6 and 14 of the Age Discrimination in Employment Act, the Americans with Disabilities Act of 1990, and the Civil Rights Act of 1991; $242,000,000: <proviso><i>Provided,</i> That the Commission is authorized to make available for official reception and representation expenses not to exceed $2,500 from available funds</proviso>.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Federal Communications Commission</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Federal Communications Commission, as authorized by law, including uniforms and allowances therefor, as authorized by 5 U.S.C. 5901–02; not to exceed $600,000 for land and structure; not to exceed $500,000 for improvement and care of grounds and repair to buildings; not to exceed $4,000 for official reception and representation expenses; purchase (not to exceed 16) and hire of motor vehicles; special counsel fees; and services as authorized by 5 U.S.C. 3109; $186,514,000, of which not to exceed $300,000 shall remain available until September 30, 1999, for research and policy studies: <proviso><i>Provided,</i> That $162,523,000 of offsetting collections shall be assessed and collected pursuant to section 9 of title I of the Communications Act of 1934, as amended, and shall be retained and used for necessary expenses in this appropriation, and shall remain available until expended</proviso>: <proviso><i>Provided further</i>, That the sum herein appropriated shall be reduced as such offsetting collections are received during fiscal year 1998 so as to result in a final fiscal year 1998 appropriation estimated at $23,991,000</proviso>: <proviso><i>Provided further</i>, That any offsetting collections received in excess of $162,523,000 in fiscal year 1998 <page identifier="/us/stat/111/2509">111 STAT. 2509</page>shall remain available until expended, but shall not be available for obligation until October 1, 1998</proviso>.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Federal Maritime Commission</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Federal Maritime Commission as authorized by section 201(d) of the Merchant Marine Act, 1936, as amended (46 U.S.C. App. 1111), including services as authorized by 5 U.S.C. 3109; hire of passenger motor vehicles as authorized by 31 U.S.C. 1343(b); and uniforms or allowances therefor, as authorized by 5 U.S.C. 5901–5902; $14,000,000: <proviso><i>Provided</i>, That not to exceed $2,000 shall be available for official reception and representation expenses</proviso>.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Federal Trade Commission</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Federal Trade Commission, including uniforms or allowances therefor, as authorized by 5 U.S.C. 5901–5902; services as authorized by 5 U.S.C. 3109; hire of passenger motor vehicles; and not to exceed $2,000 for official reception and representation expenses; $88,500,000: <proviso><i>Provided</i>, That not to exceed $300,000 shall be available for use to contract with a person or persons for collection services in accordance with the terms of 31 U.S.C. 3718, as amended</proviso>: <proviso><i>Provided further</i>, That notwithstanding any other provision of law, not to exceed $70,000,000 of offsetting collections derived from fees collected for premerger notification filings under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (15 U.S.C. 18(a)) shall be retained and used for necessary expenses in this appropriation, and shall remain available until expended</proviso>: <proviso><i>Provided further</i>, That the sum herein appropriated from the general fund shall be reduced as such offsetting collections are received during fiscal year 1998, so as to result in a final fiscal year 1998 appropriation from the general fund estimated at not more than $18,500,000, to remain available until expended</proviso>: <proviso><i>Provided further</i>, That any fees received in excess of $70,000,000 in fiscal year 1998 shall remain available until expended, but shall not be available for obligation until October 1, 1998</proviso>: <proviso><i>Provided further</i>, That none of the funds made available to the Federal Trade Commission shall be available for obligation for expenses authorized by section 151 of the Federal Deposit Insurance Corporation Improvement Act of 1991 (Public Law 102–242; 105 Stat. 2282–2285)</proviso>.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Gambling Impact Study Commission</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the National Gambling Impact Study Commission, $1,000,000, to remain available until expended.</content> </appropriations> </appropriations> <page identifier="/us/stat/111/2510">111 STAT. 2510</page> <appropriations level="intermediate"> <heading>Legal Services Corporation</heading> <appropriations level="small"> <heading>payment to the legal services corporation</heading> <content>For payment to the Legal Services Corporation to carry out the purposes of the Legal Services Corporation Act of 1974, as amended, $283,000,000, of which $274,400,000 is for basic field programs and required independent audits; $1,500,000 is for the Office of Inspector General, of which such amounts as may be necessary may be used to conduct additional audits of recipients; and $7,100,000 is for management and administration.</content> </appropriations> </appropriations> <level><heading>ADMINISTRATIVE PROVISIONS—LEGAL SERVICES CORPORATION</heading> <section><num value="501"><inline class="smallCaps">Sec.</inline> 501. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Continuation of Competitive Selection Process</inline>.—</heading><content>None of the funds appropriated in this Act to the Legal Services Corporation may be used to provide financial assistance to any person or entity except through a competitive selection process conducted in accordance with regulations promulgated by the Corporation in accordance with the criteria set forth in subsections (c), (d), and (e) of section 503 of Public Law 104–134 (110 Stat. 1321–52 et seq.).</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Inapplicability of Certain Procedures</inline>.—</heading><content>Sections 1007(a)(9) and 1011 of the Legal Services Corporation Act (42 U.S.C. 2996f(aX9) and 2996j) shall not apply to the provision, denial, suspension, or termination of any financial assistance using funds appropriated in this Act.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Additional Procedures</inline>.—</heading><content>If, during any term of a grant or contract awarded to a recipient by the Legal Services Corporation under the competitive selection process referred to in subsection (a) and applicable Corporation regulations, the Corporation finds, after notice and opportunity for the recipient to be heard, that the recipient has failed to comply with any requirement of the Legal Services Corporation Act (42 U.S.C. 2996 et seq.), this Act, or any other applicable law relating to funding for the Corporation, the Corporation may terminate the grant or contract and institute a new competitive selection process for the area served by the recipient, notwithstanding the terms of the recipient’s grant or contract.</content></subsection></section> <section><num value="502"><inline class="smallCaps">Sec.</inline> 502. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Continuation of Requirements and Restrictions.</inline>—</heading><chapeau>None of the funds appropriated in this Act to the Legal Services Corporation shall be expended for any purpose prohibited or limited by, or contrary to any of the provisions of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>sections 501, 502, 505, 506, and 507 of Public Law 104–134 (110 Stat. 1321–51 et seq.), and all funds appropriated in this Act to the Legal Services Corporation shall be subject to the same terms and conditions as set forth in such sections, except that all references in such sections to 1995 and 1996 shall be deemed to refer instead to 1997 and 1998, respectively; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>section 504 of Public Law 104–134 (110 Stat. 1321–53 et seq.), and all funds appropriated in this Act to the Legal Services Corporation shall be subject to the same terms and conditions set forth in such section, except that—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>subsection (c) of such section 504 shall not apply;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote><content>paragraph (3) of section 508(b) of Public Law 104–134 (110 Stat. 1321–58) shall apply with respect to the requirements of subsection (a)( 13) of such section 504, <page identifier="/us/stat/111/2511">111 STAT. 2511</page>except that all references in such section 508(b) to the date of enactment shall be deemed to refer to April 26, 1996; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><chapeau>subsection (a)(11) of such section 504 shall not be construed to prohibit a recipient from using funds derived from a source other than the Corporation to provide related legal assistance to—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>an alien who has been battered or subjected to extreme cruelty in the United States by a spouse or a parent, or by a member of the spouse’s or parent’s family residing in the same household as the alien and the spouse or parent consented or acquiesced to such battery or cruelty; or</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>an alien whose child has been battered or subjected to extreme cruelty in the United States by a spouse or parent of the alien (without the active participation of the alien in the battery or extreme cruelty), or by a member of the spouse’s or parent’s family residing in the same household as the alien and the spouse or parent consented or acquiesced to such battery or cruelty, and the alien did not actively participate in such battery or cruelty.</content></clause></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Definitions.</inline>—</heading><chapeau>For purposes of subsection (a)(2)(C):</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The term “battered or subjected to extreme cruelty” has the meaning given such term under regulations issued pursuant to subtitle G of the Violence Against Women Act of 1994 (Public Law 103–322; 108 Stat. 1953).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The term “related legal assistance” means legal assistance directly related to the prevention of, or obtaining of relief from, the battery or cruelty described in such subsection.</content></paragraph></subsection></section> <section><num value="503"><inline class="smallCaps">Sec.</inline> 503. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Continuation of Audit Requirements</inline>.—</heading><content>The <sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote> requirements of section 509 of Public Law 104–134 (110 Stat. 1321–58 et seq.), other than subsection (1) of such section, shall apply during fiscal year 1998.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Requirement of Annual Audit.—</inline></heading><content>An annual audit of each person or entity receiving financial assistance from the Legal Services Corporation under this Act shall be conducted during fiscal year 1998 in accordance with the requirements referred to in subsection (a).</content></subsection></section> <section><num value="504"><inline class="smallCaps">Sec.</inline> 504. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Debarment</inline>.—</heading><content>The Legal Services Corporation may debar a recipient, on a showing of good cause, from receiving an additional award of financial assistance from the Corporation. Any such action to debar a recipient shall be instituted after the Corporation provides notice and an opportunity for a hearing to the recipient.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Regulations</inline>.—</heading><content>The Legal Services Corporation shall promulgate regulations to implement this section.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Good Cause</inline>.—</heading><chapeau>In this section, the term “good cause”, used with respect to debarment, includes—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>prior termination of the financial assistance of the recipient, under part 1640 of title 45, Code of Federal Regulations (or any similar corresponding regulation or ruling);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>prior termination in whole, under part 1606 of title 45, Code of Federal Regulations (or any similar corresponding regulation or ruling), of the most recent financial assistance received by the recipient, prior to date of the debarment decision;</content></paragraph> <page identifier="/us/stat/111/2512">111 STAT. 2512</page> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>substantial violation by the recipient of the statutory or regulatory restrictions that prohibit recipients from using financial assistance made available by the Legal Services Corporation or other financial assistance for purposes prohibited under the Legal Services Corporation Act (42 U.S.C. 2996 et seq.) or for involvement in any activity prohibited by, or inconsistent with, section 504 of Public Law 104–134 (110 Stat. 1321–53 et seq.), section 502(a)(2) of Public Law 104–208 (110 Stat. 3009–59 et seq.), or section 502(a)(2) of this Act;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>knowing entry by the recipient into a subgrant, subcontract, or other agreement with an entity that had been debarred by the Corporation; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>the filing of a lawsuit by the recipient, on behalf of the recipient, as part of any program receiving any Federal funds, naming the Corporation, or any agency or employee of a Federal, State, or local government, as a defendant.</content></paragraph></subsection></section> <section><num value="505"><inline class="smallCaps">Sec.</inline> 505. </num><subsection class="inline"><num value="a">(a) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote><content>Not later than January 1, 1998, the Legal Services Corporation shall implement a system of case information disclosure which shall apply to all basic field programs which receive funds from the Legal Services Corporation from funds appropriated in this Act.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>Any basic field program which receives Federal funds from the Legal Services Corporation from funds appropriated in this Act must disclose to the public in written form, upon request, and to the Legal Services Corporation in semiannual reports, the following information about each case filed by its attorneys in any court:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The name and full address of each party to the legal action unless such information is protected by an order or rule of a court or by State or Federal law or revealing such information would put the client of the recipient of such Federal funds at risk of physical harm.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The cause of action in the case.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The name and address of the court in which the case was filed and the case number assigned to the legal action.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>The case information disclosed in semiannual reports to the Legal Services Corporation shall be subject to disclosure under section 552 of title 5, United States Code.</content></subsection></section> <section><num value="506"><inline class="smallCaps">Sec.</inline> 506. </num><content>In establishing the income or assets of an individual who is a victim of domestic violence, under section 1007(a)(2) of the Legal Services Corporation Act (42 U.S.C. 2996f(a)(2)), to determine if the individual is eligible for legal assistance, a recipient described in such section shall consider only the assets and income of the individual, and shall not include any jointly held assets.</content></section> </level> <appropriations level="intermediate"> <heading>Marine Mammal Commission</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the Marine Mammal Commission as authorized by title II of Public Law 92–522, as amended, $1,185,000.</content> </appropriations> </appropriations> <page identifier="/us/stat/111/2513">111 STAT. 2513</page> <appropriations level="intermediate"> <heading>Securities and Exchange Commission</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses for the Securities and Exchange Commission, including services as authorized by 5 U.S.C. 3109, the rental of space (to include multiple year leases) in the District of Columbia and elsewhere, and not to exceed $3,000 for official reception and representation expenses, $283,000,000, of which not to exceed $10,000 may be used toward funding a permanent secretariat for the International Organization of Securities Commissions, and of which not to exceed $100,000 shall be available for expenses for consultations and meetings hosted by the Commission with foreign governmental and other regulatory officials, members of their delegations, appropriate representatives and staff to exchange views concerning developments relating to securities matters, development and implementation of cooperation agreements ‘ concerning securities matters and provision of technical assistance for the development of foreign securities markets, such expenses to include necessary logistic and administrative expenses and the expenses of Commission staff and foreign invitees in attendance at such consultations and meetings including: (1) such incidental expenses as meals taken in the course of such attendance; (2) any travel and transportation to or from such meetings; and (3) any other related lodging or subsistence: <proviso><i>Provided,</i> That fees and charges authorized by sections 6(b)(4) of the Securities Act of 1933 (15 U.S.C. 77f)(b)(4)) and 31(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78ee(d)) shall be credited to this account as offsetting collections</proviso>: <proviso><i>Provided further</i>, That not to exceed $249,523,000 of such offsetting collections shall be available until expended for necessary expenses of this account</proviso>: <proviso><i>Provided further</i>, That the total amount appropriated from the general fund for fiscal year 1998 under this heading shall be reduced as all such offsetting fees are deposited to this appropriation so as to result in a final total fiscal year 1998 appropriation from the general fund estimated at not more than $33,477,000</proviso>.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Small Business Administration</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses, not otherwise provided for, of the Small Business Administration as authorized by Public Law 103–403, including hire of passenger motor vehicles as authorized by 31 U.S.C. 1343 and 1344, and not to exceed $3,500 for official reception and representation expenses, $254,200,000, of which: $3,000,000 shall be available for a grant to Lackawanna County, Pennsylvania for infrastructure development to assist in small business development; $3,000,000 shall be available for a grant to the NTTC at Wheeling Jesuit University to continue the outreach program to assist small business development; $2,000,000 shall be for a grant to Western Carolina University to develop a facility to assist in small business and rural economic development; $1,500,000 shall be available for a grant to the State University of New York to develop a facility and operate the Institute of Entrepreneurship for small business and workforce development; $1,000,000 shall be for a grant for the Genesis Small Business Incubator Facility, Fayetteville, Arkansas; and $500,000 shall be available for a <page identifier="/us/stat/111/2514">111 STAT. 2514</page>continuation grant to the Center for Entrepreneurial Opportunity in Greensburg, Pennsylvania, to provide for small business consulting and assistance: <proviso><i>Provided</i>, That the Administrator is authorized to charge fees to cover the cost of publications developed by the Small Business Administration, and certain loan servicing activities</proviso>: <proviso><i>Provided further</i>, That, notwithstanding 31 U.S.C. 3302, revenues received from all such activities shall be credited to this account, to be available for carrying out these purposes without further appropriations</proviso>: <proviso><i>Provided further</i>, That $75,800,000 shall be available to fund grants for performance in fiscal year 1998 or fiscal year 1999 as authorized by section 21 of the Small Business Act, as amended</proviso>.</content> </appropriations> <appropriations level="small"> <heading>office of inspector general</heading> <content>For necessary expenses of the Office of Inspector General in carrying out the provisions of the Inspector General Act of 1978, as amended (5 U.S.C. App. 1–11), as amended by Public Law 100–504, $10,000,000.</content> </appropriations> <appropriations level="small"> <heading>business loans program account</heading> <content><p class="indent0 firstIndent1 fontsize10">For the cost of guaranteed loans, $181,232,000, as authorized by 15 U.S.C. 631 note, of which $45,000,000 shall remain available until September 30, 1999: <proviso><i>Provided</i>, That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974</proviso>: <proviso><i>Provided further</i>, That during fiscal year 1998, commitments to guarantee loans under section 503 of the Small Business Investment Act of 1958, as amended, shall not exceed the amount of financings authorized under section 20(n)(2)(B) of the Small Business Act, as amended</proviso>: <proviso><i>Provided further</i>, That during fiscal year 1998, commitments for general business loans authorized under section 7(a) of the Small Business Act, as amended, shall not exceed $10,000,000,000 without prior notification of the Committees on Appropriations of the House of Representatives and Senate in accordance with section 605 of this Act</proviso>.</p> <p class="indent0 firstIndent1 fontsize10">In addition, for administrative expenses to carry out the direct and guaranteed loan programs, $94,000,000, which may be transferred to and merged with the appropriations for Salaries and Expenses.</p></content> </appropriations> <appropriations level="small"> <heading>disaster loans program account</heading> <content><p class="indent0 firstIndent1 fontsize10">For the cost of direct loans authorized by section 7(b) of the Small Business Act, as amended, $23,200,000, to remain available until expended: <proviso><i>Provided</i>, That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974</proviso>.</p> <p class="indent0 firstIndent1 fontsize10">In addition, for administrative expenses to carry out the direct loan program, $150,000,000, including not to exceed $500,000 for the Office of Inspector General of the Small Business Administration for audits and reviews of disaster loans and the disaster loan program, and said sums shall be transferred to and merged with appropriations for the Office of Inspector General.</p></content> </appropriations> <page identifier="/us/stat/111/2515">111 STAT. 2515</page> <appropriations level="small"> <heading>surety bond guarantees revolving fund</heading> <content>For additional capital for the “Surety Bond Guarantees Revolving Fund”, authorized by the Small Business Investment Act, as amended, $3,500,000, to remain available without fiscal year limitation as authorized by 15 U.S.C. 631 note.</content> </appropriations> <appropriations level="small"> <heading>administrative provision—small business administration</heading> <content>Not to exceed 5 percent of any appropriation made available for the current fiscal year for the Small Business Administration in this Act may be transferred between such, appropriations, but no such appropriation shall be increased by more than 10 percent by any such transfers: <proviso><i>Provided</i>, That any transfer pursuant to this paragraph shall be treated as a reprogramming of funds under section 605 of this Act and shall not be available for obligation or expenditure except in compliance with the procedures set forth in that section</proviso>.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>State Justice Institute</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content>For necessary expenses of the State Justice Institute, as authorized by the State Justice Institute Authorization Act of 1992 (Public Law 102–572 (106 Stat. 4515–4516)), $6,850,000, to remain available until expended: <proviso><i>Provided,</i> That not to exceed $2,500 shall be available for official reception and representation expenses</proviso>.</content> </appropriations> </appropriations> <num value="V">TITLE VI—</num><heading>GENERAL PROVISIONS</heading> <section><num value="601"><inline class="smallCaps">Sec.</inline> 601. </num><content>No part of any appropriation contained in this Act shall be used for publicity or propaganda purposes not authorized by the Congress.</content></section> <section><num value="602"><inline class="smallCaps">Sec.</inline> 602. </num><content>No part of any appropriation contained in this Act shall remain available for obligation beyond the current fiscal year unless expressly so provided herein.</content></section> <section><num value="603"><inline class="smallCaps">Sec.</inline> 603. </num><content>The expenditure of any appropriation under this <sidenote><p class="indent0 firstIndent0 fontsize8">Contracts.</p> <p class="indent0 firstIndent0 fontsize8">Public information.</p> </sidenote>Act for any consulting service through procurement contract, pursuant to 5 U.S.C. 3109, shall be limited to those contracts where such expenditures are a matter of public record and available for public inspection, except where otherwise provided under existing law, or under existing Executive order issued pursuant to existing law.</content></section> <section><num value="604"><inline class="smallCaps">Sec.</inline> 604. </num><content>If any provision of this Act or the application of such provision to any person or circumstances shall be held invalid, the remainder of the Act and the application of each provision to persons or circumstances other than those as to which it is held invalid shall not be affected thereby.</content></section> <section><num value="605"><inline class="smallCaps">Sec.</inline> 605. </num><subsection class="inline"><num value="a">(a) </num><content>None of the funds provided under this Act, or provided under previous appropriations Acts to the agencies funded by this Act that remain available for obligation or expenditure in fiscal year 1998, or provided from any accounts in the Treasury of the United States derived by the collection of fees available to the agencies funded by this Act, shall be available for obligation or expenditure through a reprogramming of funds which: (1) creates new programs; (2) eliminates a program, project, or activity; (3) increases funds or personnel by any means for any project or <page identifier="/us/stat/111/2516">111 STAT. 2516</page>activity for which funds have been denied or restricted; (4) relocates an office or employees; (5) reorganizes offices, programs, or activities; or (6) contracts out or privatizes any functions, or activities presently performed by Federal employees; unless the Appropriations Committees of both Houses of Congress are notified 15 days in advance of such reprogramming of funds.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>None of the funds provided under this Act, or provided under previous appropriations Acts to the agencies funded by this Act that remain available for obligation or expenditure in fiscal year 1998, or provided from any accounts in the Treasury of the United States derived by the collection of fees available to the agencies funded by this Act, shall be available for obligation or expenditure for activities, programs, or projects through a reprogramming of funds in excess of $500,000 or 10 percent, whichever is less, that: (1) augments existing programs, projects, or activities; (2) reduces by 10 percent funding for any existing program, project, or activity, or numbers of personnel by 10 percent as approved by Congress; or (3) results from any general savings from a reduction in personnel which would result in a change in existing programs, activities, or projects as approved by Congress; unless the Appropriations Committees of both Houses of Congress are notified 15 days in advance of such reprogramming of funds.</content></subsection></section> <section><num value="606"><inline class="smallCaps">Sec.</inline> 606. </num><content>None of the funds made available in this Act may be used for the construction, repair (other than emergency repair), overhaul, conversion, or modernization of vessels for the National Oceanic and Atmospheric Administration in shipyards located outside of the United States.</content></section> <section><num value="607"><inline class="smallCaps">Sec.</inline> 607. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">Purchase of American-Made Equipment and Products</inline>.—</heading><content>It is the sense of the Congress that, to the greatest extent practicable, all equipment and products purchased with funds made available in this Act should be American-made.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Notice Requirement</inline>.—</heading><content>In providing financial assistance to, or entering into any contract with, any entity using funds made available in this Act, the head of each Federal agency, to the greatest extent practicable, shall provide to such entity a notice describing the statement made in subsection (a) by the Congress.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Prohibition of Contracts With Persons Falsely Labeling Products as Made in America</inline>.—</heading><content>If it has been finally determined by a court or Federal agency that any person intentionally affixed a label bearing a “Made in America” inscription, or any inscription with the same meaning, to any product sold in or shipped to the United States that is not made in the United States, the person shall be ineligible to receive any contract or subcontract made with funds made available in this Act, pursuant to the debarment, suspension, and ineligibility procedures described in sections 9.400 through 9.409 of title 48, Code of Federal Regulations.</content></subsection></section> <section><num value="608"><inline class="smallCaps">Sec.</inline> 608. </num><content>None of the funds made available in this Act may be used to implement, administer, or enforce any guidelines of the Equal Employment Opportunity Commission covering harassment based on religion, when it is made known to the Federal entity or official to which such funds are made available that such guidelines do not differ in any respect from the proposed guidelines published by the Commission on October 1, 1993 (58 Fed. Reg. 51266).</content></section> <section><num value="609"><inline class="smallCaps">Sec.</inline> 609. </num><chapeau>None of the funds appropriated or otherwise made available by this Act may be obligated or expended to pay for any cost incurred for: (1) opening or operating any United States <page identifier="/us/stat/111/2517">111 STAT. 2517</page>diplomatic or consular post in the Socialist Republic of Vietnam that was not operating on July 11, 1995; (2) expanding any United States diplomatic or consular post in the Socialist Republic of Vietnam that was operating on July 11, 1995; or (3) increasing the total number of personnel assigned to United States diplomatic or consular posts in the Socialist Republic of Vietnam above the levels existing on July 11, 1995, unless the President certifies within 60 days the following:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><chapeau>Based upon all information available to the United States Government, the Government of the Socialist Republic of Vietnam is fully cooperating in good faith with the United States in the following:</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>Resolving discrepancy cases, live sightings, and field activities.</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>Recovering and repatriating American remains.</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii) </num><content>Accelerating efforts to provide documents that will help lead to fullest possible accounting of prisoners of war and missing in action.</content></clause> <clause class="indent3 fontsize10"><num value="iv">(iv) </num><content>Providing further assistance in implementing trilateral investigations with Laos.</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>The remains, artifacts, eyewitness accounts, archival material, and other evidence associated with prisoners of war and missing in action recovered from crash sites, military actions, and other locations in Southeast Asia are being thoroughly analyzed by the appropriate laboratories with the intent of providing surviving relatives with scientifically defensible, legal determinations of death or other accountability that are fully documented and available in unclassified and unredacted form to immediate family members.</content></subparagraph></section> <section><num value="610"><inline class="smallCaps">Sec.</inline> 610. </num><content>None of the funds made available by this Act may be used for any United Nations undertaking when it is made known to the Federal official having authority to obligate or expend such funds: (1) that the United Nations undertaking is a peacekeeping mission; (2) that such undertaking will involve United States Armed Forces under the command or operational control of a foreign national; and (3) that the President’s military advisors have not submitted to the President a recommendation that such involvement is in the national security interests of the United States and the President has not submitted to the Congress such a recommendation.</content></section> <section><num value="611"><inline class="smallCaps">Sec.</inline> 611. </num><chapeau>None of the funds made available in this Act shall be used to provide the following amenities or personal comforts in the Federal prison system—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in-cell television viewing except for prisoners who are segregated from the general prison population for their own safety;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the viewing of R, X, and NC-17 rated movies, through whatever medium presented;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>any instruction (live or through broadcasts) or training equipment for boxing, wrestling, judo, karate, or other martial art, or any bodybuilding or weightlifting equipment of any sort;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>possession of in-cell coffee pots, hot plates or heating elements; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>the use or possession of any electric or electronic musical instrument.</content></paragraph></section> <page identifier="/us/stat/111/2518">111 STAT. 2518</page> <section><num value="612"><inline class="smallCaps">Sec.</inline> 612. </num><content>None of the funds made available in title II for the National Oceanic and Atmospheric Administration (NOAA) under the headings “Operations, Research, and Facilities” and “Procurement, Acquisition and Construction” may be used to implement sections 603, 604, and 605 of Public Law 102–567: <proviso><i>Provided</i>, That NOAA may develop a modernization plan for its fisheries research vessels that takes fully into account opportunities for contracting for fisheries surveys</proviso>.</content></section> <section><num value="613"><inline class="smallCaps">Sec.</inline> 613. </num><content>Any costs incurred by a Department or agency funded under this Act resulting from personnel actions taken in response to funding reductions included in this Act shall be absorbed within the total budgetary resources available to such Department or agency: <proviso><i>Provided,</i> That the authority to transfer funds between appropriations accounts as may be necessary to carry out this section is provided in addition to authorities included elsewhere in this Act</proviso>: <proviso><i>Provided further</i>, That use of funds to carry out this section shall be treated as a reprogramming of funds under section 605 of this Act and shall not be available for obligation or expenditure except in compliance with the procedures set forth in that section</proviso>.</content></section> <section><num value="614"><inline class="smallCaps">Sec.</inline> 614. </num><sidenote><p class="indent0 firstIndent0 fontsize8">Pornography.</p></sidenote><content class="inline">None of the funds made available in this Act to the Federal Bureau of Prisons may be used to distribute or make available any commercially published information or material to a prisoner when it is made known to the Federal official having authority to obligate or expend such funds that such information or material is sexually explicit or features nudity.</content></section> <section><num value="615"><inline class="smallCaps">Sec.</inline> 615. </num><content>Of the funds appropriated in this Act under the heading “<inline class="smallCaps">Office of Justice Programs—state and local law enforcement assistance</inline>”, not more than 90 percent of the amount to be awarded to an entity under the Local Law Enforcement Block Grant shall be made available to such an entity when it is made known to the Federal official having authority to obligate or expend such funds that the entity that employs a public safety officer (as such term is defined in section 1204 of title I of the Omnibus Crime Control and Safe Streets Act of 1968) does not provide such a public safety officer who retires or is separated from service due to injury suffered as the direct and proximate result of a personal injury sustained in the line of duty while responding to an emergency situation or a hot pursuit (as such terms are defined by State law) with the same or better level of health insurance benefits at the time of retirement or separation as they received while on duty.</content></section> <section><num value="616"><inline class="smallCaps">Sec.</inline> 616. </num><subsection class="inline"><num value="a">(a) </num><chapeau>None of the funds made available in this Act may be used to issue or renew a fishing permit or authorization for any fishing vessel of the United States greater than 165 feet in registered length or of more than 750 gross registered tons, and that has an engine or engines capable of producing a total of more than 3,000 shaft horsepower—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>as specified in the permit application required under part 648.4(a)(5) of title 50, Code of Federal Regulations, part 648.12 of title 50, Code of Federal Regulations, and the authorization required under part 648.80(d)(2) of title 50, Code of Federal Regulations, to engage in fishing for Atlantic mackerel or herring (or both) under the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1801 et seq.); or</content></paragraph> <page identifier="/us/stat/111/2519">111 STAT. 2519</page> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>that would allow such a vessel to engage in the catching, taking, or harvesting of fish in any other fishery within the exclusive economic zone of the United States (except territories), unless a certificate of documentation had been issued for the vessel and endorsed with a fishery endorsement that was effective on September 25, 1997 and such fishery endorsement was not surrendered at any time thereafter.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Any fishing permit or authorization issued or renewed prior to the date of the enactment of this Act for a fishing vessel to which the prohibition in subsection (a)(1) applies that would allow such vessel to engage in fishing for Atlantic mackerel or herring (or both) during fiscal year 1998 shall be null and void, and none of the funds made available in this Act may be used to issue a fishing permit or authorization that would allow a vessel whose permit or authorization was made null and void pursuant to this subsection to engage in the catching, taking, or harvesting of fish in any other fishery within the exclusive economic zone of the United States.</content></subsection></section> <section><num value="617"><inline class="smallCaps">Sec.</inline> 617. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t18/s3006A">18 USC 3006A</ref> note.</p></sidenote> <content class="inline">During fiscal year 1998 and in any fiscal year thereafter, the court, in any criminal case (other than a case in which the defendant is represented by assigned counsel paid for by the public) pending on or after the date of the enactment of this Act, may award to a prevailing party, other than the United States, a reasonable attorney’s fee and other litigation expenses, where the court finds that the position of the United States was vexatious, frivolous, or in bad faith, unless the court finds that special circumstances make such an award unjust. Such awards shall be granted pursuant to the procedures and limitations (but not the burden of proof) provided for an award under section 2412 of title 28, United States Code. To determine whether or not to award fees and costs under this section, the court, for good cause shown, may receive evidence ex parte and in camera (which shall include the submission of classified evidence or evidence that reveals or might reveal the identity of an informant or undercover agent or matters occurring before a grand jury) and evidence or testimony so received shall be kept under seal. Fees and other expenses awarded under this provision to a party shall be paid by the agency over which the party prevails from any funds made available to the agency by appropriation. No new appropriations shall be made as a result of this provision.</content></section> <section><num value="618"><inline class="smallCaps">Sec.</inline> 618. </num><content>None of the funds provided by this Act shall be available to promote the sale or export of tobacco or tobacco products, or to seek the reduction or removal by any foreign country of restrictions on the marketing of tobacco or tobacco products, except for restrictions which are not applied equally to all tobacco or tobacco products of the same type.</content></section> <section><num value="619"><inline class="smallCaps">Sec.</inline> 619. </num><content>None of the funds made available in this Act may be used to pay the expenses of an election officer appointed by a court to oversee an election of any officer or trustee for the International Brotherhood of Teamsters.</content></section> <section><num value="620"><inline class="smallCaps">Sec.</inline> 620. </num><content>The second proviso of the second paragraph under the heading “<inline class="smallCaps">office of the chief signal officer</inline>.” in the Act entitled “An Act Making appropriations for the support of the Regular and Volunteer Army for the fiscal year ending June thirtieth, nineteen hundred and one”, approved May 26, 1900 (31 Stat. 206; ch. 586; 47 U.S.C. 17), is repealed.</content></section> <page identifier="/us/stat/111/2520">111 STAT. 2520</page> <section><num value="621"><inline class="smallCaps">Sec.</inline> 621. </num><subsection class="inline"><num value="a">(a) </num><chapeau>None of the funds appropriated or otherwise made available in this Act shall be used to issue visas to any person who—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Name listing.</p></sidenote><content>has been credibly alleged to have ordered, carried out, or materially assisted in the extrajudicial and political killings of Antoine Izmery, Guy Malary, Father Jean-Marie Vincent, Pastor Antoine Leroy, Jacques Fleurival, Mireille Durocher Bertin, Eugene Baillergeau, Michelange Hermann, Max Mayard, Romulus Dumarsais, Claude Yves Marie, Mario Beaubrun, Leslie Grimar, Joseph Chilove, Michel Gonzalez, and Jean-Hubert Feuille;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Jean-Bertrand Aristide.</p> <p class="indent0 firstIndent0 fontsize8">Anthony Lake.</p> <p class="indent0 firstIndent0 fontsize8">Rene Preval.</p> </sidenote><content>has been included in the list presented to former President Jean-Bertrand Aristide by former National Security Council Advisor Anthony Lake in December 1995, and acted upon by President Rene Preval;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Jean-Joseph Exume.</p></sidenote><content>was sought for an interview by the Federal Bureau of Investigation as part of its inquiry into the March 28, 1995, murder of Mireille Durocher Bertin and Eugene Baillergeau, Jr., and was credibly alleged to have ordered, carried out, or materially assisted in those murders, per a June 28, 1995, letter to the then Minister of Justice of the Government of Haiti, Jean-Joseph Exume;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><chapeau>was a member of the Haitian High Command during the period 1991 through 1994, and has been credibly alleged to have planned, ordered, or participated with members of the Haitian Armed Forces in—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the September 1991 coup against any person who was a duly elected government official of Haiti (or a member of the family of such official), or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the murders of thousands of Haitians during the period 1991 through 1994; or</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>has been credibly alleged to have been a member of the paramilitary organization known as FRAPH who planned, ordered, or participated in acts of violence against the Haitian people.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Exemption</inline>.—</heading><content>Subsection (a) shall not apply if the Secretary of State finds, on a case-by-case basis, that the entry into the United States of a person who would otherwise be excluded under this section is necessary for medical reasons or such person has cooperated fully with the investigation of these political murders. If the Secretary of State exempts any such person, the Secretary shall notify the appropriate congressional committees in writing.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Records.</p></sidenote><heading><inline class="smallCaps">Reporting Requirement</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The United States chief of mission in Haiti shall provide the Secretary of State a list of those who have been credibly alleged to have ordered or carried out the extrajudicial and political killings mentioned in paragraph (1) of subsection (a).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The Secretary of State shall submit the list provided under paragraph (1) to the appropriate congressional committees not later than 3 months after the date of enactment of this Act.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><content>The Secretary of State shall submit to the appropriate congressional committees a list of aliens denied visas, and the Attorney General shall submit to the appropriate congressional committees a list of aliens refused entry to the United States as a result of this provision.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="4">(4) </num><content>The Secretary of State shall submit a report under this subsection not later than 6 months after the date of enactment <page identifier="/us/stat/111/2521">111 STAT. 2521</page>of this Act and not later than March 1 of each year thereafter as long as the Government of Haiti has not completed the investigation of the extrajudicial and political killings and has not prosecuted those implicated for the killings specified in paragraph (1) of subsection (a).</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Definition</inline>.—</heading><content>In this section, the term “appropriate congressional committees” means the Committee on International Relations and the Committee on Appropriations of the House of Representatives and the Committee on Foreign Relations and the Committee on Appropriations of the Senate.</content></subsection></section> <section><num value="622"><inline class="smallCaps">Sec.</inline> 622. </num><content>Section 3006 of the Balanced Budget Act of 1997 (Public Law 105–33; 111 Stat. 251, 269) is hereby repealed. This <sidenote><p class="indent0 firstIndent0 fontsize8">47 USC 254 note.</p></sidenote>section shall be deemed a section of the Balanced Budget Act of 1997 for the purposes of section 10213 of that Act (111 Stat. 712), and shall be scored pursuant to paragraph (2) of such section.</content></section> <section><num value="623"><inline class="smallCaps">Sec.</inline> 623. </num><heading><inline class="smallCaps">Report on Universal Service under the Telecommunications Act OF 1996</inline>.—</heading><subsection class="inline"><num value="a">(a) </num><content>The Federal Communications Commission shall undertake a review of the implementation by the Commission of the provisions of the Telecommunications Act of 1996 (Public Law 104–104) relating to universal service. Such review shall be completed and submitted to the Congress no later than April 10, 1998.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>The report required under subsection (a) shall provide a detailed description of the extent to which the Commission interpretations reviewed under paragraphs (1) through (5) are consistent with the plain language of the Communications Act of 1934 (47 U.S.C. 151 et seq.), as amended by the Telecommunications Act of 1996, and shall include a review of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the definitions of “information service”, “local exchange carrier”, “telecommunications”, “telecommunications service”, “telecommunications carrier”, and “telephone exchange service” that were added to section 3 of the Communications Act of 1934 (47 U.S.C. 153) by the Telecommunications Act of 1996 and the impact of the Commission’s interpretation of those definitions on the current and future provision of universal service to consumers in all areas of the Nation, including high cost and rural areas;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the application of those definitions to mixed or hybrid services and the impact of such application on universal service definitions and support, and the consistency of the Commission’s application of those definitions, including with respect to Internet access under section 254(h) of the Communications Act of 1934 (47 U.S.C. 254(h));</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>who is required to contribute to universal service under section 254(d) of the Communications Act of 1934 (47 U.S.C. 254(d)) and related existing Federal universal service support mechanisms, and of any exemption of providers or exclusion of any service that includes telecommunications from such requirement or support mechanisms;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>who is eligible under sections 254(e), 254(h)(1), and 254(h)(2) of the Communications Act of 1934 (47 U.S.C. 254(e), 254(h)(1), and 254(h)(2)) to receive specific Federal universal service support for the provision of universal service, and the consistency with which the Commission has interpreted each of those provisions of section 254; and</content></paragraph> <page identifier="/us/stat/111/2522">111 STAT. 2522</page> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>the Commission’s decisions regarding the percentage of universal service support provided by Federal mechanisms and the revenue base from which such support is derived.</content></paragraph></subsection></section> <section><num value="624"><inline class="smallCaps">Sec.</inline> 624. </num><content>Section 6(d)(1) of the National Foundation on the Arts and the Humanities Act of 1965 (20 U.S.C. 955(d)(1)) is amended by striking the word “fourteen” and inserting in lieu thereof “eight”.</content></section> <section><num value="625"><inline class="smallCaps">Sec.</inline> 625. </num><subsection class="inline"><num value="a">(a) </num><content>Section 814(g)(1) of the Foreign Relations Authorization Act, Fiscal Years 1986 and 1987 (22 U.S.C. 2291 note) is amended by striking “<quotedText>$325,000</quotedText>” and inserting “<quotedText>$370,000</quotedText>”.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 814(i) of such section is amended by striking “<quotedText>September 30, 1997</quotedText>” and inserting “<quotedText>September 30, 1999</quotedText>”.</content></subsection></section> <section><num value="626"><inline class="smallCaps">Sec.</inline> 626. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>Notwithstanding any provision of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.), the Administrator of General Services shall convey, to any person that acquires an interest in the Naval Petroleum Reserve Numbered 1 (Elk Hills) under subtitle B of title XXXIV of the National Defense Authorization Act for Fiscal Year 1996 (110 Stat. 631), not to exceed 318 motor vehicles that are leased for use at that reserve on November 6, 1997.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Procedures and Requirements</inline>.—</heading><chapeau>Any conveyance of motor vehicles under this section shall be made—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>after payment to the United States of consideration equal to the fair market value of the motor vehicles; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>under procedures, terms, and conditions that shall be established by negotiation between the Administrator of General Services and the person to whom the motor vehicles are conveyed.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Treatment of Proceeds</inline>.—</heading><content>Amounts received by the United States as consideration for motor vehicles conveyed under this section shall be retained in the General Supply Fund and available in the same manner as are increments for estimated replacement cost of motor vehicles under section 211(d)(2) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 491(d)(2)).</content></subsection></section> <section><num value="627"><inline class="smallCaps">Sec.</inline> 627. </num><content>Section 19(a) of the Indian Gaming Regulatory Act (25 U.S.C. 2718(a)) is amended to read as follows: <quotedContent><subsection class="indent0 fontsize10"><num value="a">“(a) </num><content>Subject to section 18, there are authorized to be appropriated, for fiscal year 1998, and for each fiscal year thereafter, an amount equal to the amount of funds derived from the assessments authorized by section 18(a).”.</content></subsection></quotedContent></content></section> <section><num value="628"><inline class="smallCaps">Sec.</inline> 628. </num><sidenote><p class="indent0 firstIndent0 fontsize8">Clarence P. Stewart.</p></sidenote><content class="inline">Notwithstanding the failure of Clarence P. Stewart of Broadway, North Carolina, to file a timely appeal of his wrongful dismissal, during a reduction in force, from the Department of Agriculture as a State Executive Director for the former Agricultural Stabilization and Conservation Service of the Department, the Secretary of Agriculture shall cause Clarence P. Stewart to be afforded relief that is fully commensurate with the relief afforded the similarly dismissed appellants in the case before the Merit Systems Protection Board styled Blalock v. Department of Agriculture, 28 M.S.P.R. 17 (1985).</content></section> <section><num value="629"><inline class="smallCaps">Sec.</inline> 629. </num><content>Funds made available under Public Law 103–112 for the purposes of section 2007 of the Social Security Act shall be considered “qualified nonprivate funds” for the purposes of section 103(13)(B) of the Small Business Investment Act of 1958 (15 U.S.C. 662(13)(B)); provided such funds were invested on or before July 1, 1995 in a licensee that was licensed prior to July 1, 1990 <page identifier="/us/stat/111/2523">111 STAT. 2523</page>under section 301 of the Small Business Investment Act of 1958 (15 U.S.C. 681).</content></section> <section><num value="630"><inline class="smallCaps">Sec.</inline> 630. </num><chapeau>Section 332 of the Act making appropriations for the Department of the Interior and related agencies for the fiscal year ending September 30, 1998, and for other purposes, H.R. 2107 (105th Congress, 1st Session), is amended as follows—</chapeau><sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante,</i> p. 1600.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>after “October 1, 1997” strike “<quotedText>, or</quotedText>” and insert in lieu thereof “; those national forests”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>after “court-ordered to revise” strike “<quotedText>,</quotedText>” and insert in lieu thereof “; and the White Mountain National Forest”.</content></paragraph></section> <section><num value="631"><inline class="smallCaps">Sec.</inline> 631. </num><content>Section 512(b) of Public Law 105–61 is amended <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante,</i> p. 1305.</p></sidenote>by adding before the period: “unless the President announced his intent to nominate the individual prior to November 30, 1997”.</content></section> <section><num value="632"><inline class="smallCaps">Sec.</inline> 632. </num><subsection class="inline"><num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>The Secretary of Energy shall—</chapeau><sidenote><p class="indent0 firstIndent0 fontsize8">New Mexico.</p> <p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2391">42 USC 2391</ref> note.</p> </sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>convey, without consideration, to the Incorporated County of Los Alamos, New Mexico (in this section referred to as the “County”), or to the designee of the County, fee title to the parcels of land that are allocated for conveyance to the County in the agreement under subsection (e); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>transfer to the Secretary of the Interior, in trust for the Pueblo of San Ildefonso (in this section referred to as the “Pueblo”), administrative jurisdiction over the parcels that are allocated for transfer to the Secretary of the Interior in such agreement.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote><heading><inline class="smallCaps">Preliminary Identification of Parcels of Land for Conveyance or Transfer</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Not later than 90 days after the date of enactment of this Act, the Secretary of Energy shall submit to the congressional defense committees a report identifying the parcels of land under the jurisdiction or administrative control of the Secretary at or in the vicinity of Los Alamos National Laboratory that are suitable for conveyance or transfer under this section.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>A parcel is suitable for conveyance or transfer for purposes of paragraph (1) if the parcel—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>is not required to meet the national security mission of the Department of Energy or will not be required for that purpose before the end of the 10-year period beginning on the date of enactment of this Act;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>is likely to be conveyable or transferable, as the case may be, under this section not later than the end of such period; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>is suitable for use for a purpose specified in subsection (h).</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Review of Title</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Not later than one year after the <sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote>date of enactment of this Act, the Secretary shall submit to the congressional defense committees a report setting forth the results of a title search on each parcel of land identified as suitable for conveyance or transfer under subsection (b), including an analysis of any claims against or other impairments to the fee title to each such parcel.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>In the period beginning on the date of the completion of the title search with respect to a parcel under paragraph (1) and ending on the date of the submittal of the report under that paragraph, the Secretary shall take appropriate actions to resolve the claims against or other impairments, if any, to fee title that are identified with respect to the parcel in the title search.</content></paragraph></subsection> <page identifier="/us/stat/111/2524">111 STAT. 2524</page> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Environmental Restoration.</inline>—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>Not later than 21 months after the date of enactment of this Act, the Secretary shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>identify the environmental restoration or remediation, if any, that is required with respect to each parcel of land identified under subsection (b) to which the United States has fee title;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>carry out any review of the environmental impact of the conveyance or transfer of each such parcel that is required under the provisions of the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote><content>submit to Congress a report setting forth the results of the activities under subparagraphs (A) and (B).</content></subparagraph></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>If the Secretary determines under paragraph (1) that a parcel described in paragraph (1)(A) requires environmental restoration or remediation, the Secretary shall, to the maximum extent practicable, complete the environmental restoration or remediation of the parcel not later than 10 years after the date of enactment of this Act.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><heading><inline class="smallCaps">Agreement for Allocation of Parcels.</inline>—</heading><content>As soon as practicable after completing the review of titles to parcels of land under subsection (c), but not later than 90 days after the submittal of the report under subsection (d)(1)(C), the County and the Pueblo shall submit to the Secretary an agreement between the County and the Pueblo which allocates between the County and the Pueblo the parcels identified for conveyance or transfer under subsection (b).</content></subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><heading><inline class="smallCaps">Plan for Conveyance and Transfer</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Not later than 90 days after the date of the submittal to the Secretary of Energy of the agreement under subsection (e), the Secretary shall submit to the congressional defense committees a plan for conveying or transferring parcels of land under this section in accordance with the allocation specified in the agreement.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>The plan under paragraph (1) shall provide for the completion of the conveyance or transfer of parcels under this section not later than 9 months after the date of the submittal of the plan under that paragraph.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><heading><inline class="smallCaps">Conveyance or Transfer</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Subject to paragraphs (2) and (3), the Secretary shall convey or transfer parcels of land in accordance with the allocation specified in the agreement submitted to the Secretary under subsection (e).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>In the case of a parcel allocated under the agreement that is not available for conveyance or transfer in accordance with the requirement in subsection (f)(2) by reason of its requirement to meet the national security mission of the Department, the Secretary shall convey or transfer the parcel, as the case may be, when the parcel is no longer required for that purpose.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3)</num><subparagraph class="inline"><num value="A">(A) </num><content>In the case of a parcel allocated under the agreement that is not available for conveyance or transfer in accordance with such requirement by reason of requirements for environmental restoration or remediation, the Secretary shall convey or transfer the parcel, as the case may be, upon the completion of the environmental restoration or remediation that is required with respect to the parcel.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">(B) </num><content>If the Secretary determines that environmental restoration or remediation cannot reasonably be expected to be completed with respect to a parcel by the end of the 10-year period beginning <page identifier="/us/stat/111/2525">111 STAT. 2525</page>on the date of enactment of this Act, the Secretary shall not convey or transfer the parcel under this section.</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num><heading><inline class="smallCaps">Use of Conveyed or Transferred Land</inline>.—</heading><content>The parcels of land conveyed or transferred under this section shall be used for historic, cultural, or environmental preservation purposes, economic diversification purposes, or community self-sufficiency purposes.</content></subsection> <subsection class="indent0 fontsize10"><num value="i">(i) </num><heading><inline class="smallCaps">Treatment of Conveyances and Transfers</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The purpose of the conveyances and transfers under this section is to fulfill the obligations of the United States with respect to Los Alamos National Laboratory, New Mexico, under sections 91 and 94 of the Atomic Energy Community Act of 1955 (42 U.S.C. 2391, 2394).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>Upon the completion of the conveyance or transfer of the parcels of land available for conveyance or transfer under this section, the Secretary shall make no further payments with respect to Los Alamos National Laboratory under section 91 or section 94 of the Atomic Energy Community Act of 1955.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="j">(j) </num><heading><inline class="smallCaps">Repeal of Superseded Provision.—</inline></heading><content>In the event of the enactment of the National Defense Authorization Act for Fiscal Year 1998 by reason of the approval of the President of the conference report to accompany the bill (H.R. 1119) of the 105th Congress, section 3165 of such Act is repealed.</content></subsection></section> <section><num value="633"><inline class="smallCaps">Sec.</inline> 633. </num><content>Effective only for losses beginning March 1, 1997<sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante,</i> p. 2050.</p> <p class="indent0 firstIndent0 fontsize8">Effective date.</p> </sidenote>through the date of enactment of this Act, the Secretary of Agriculture may use up to $6,000,000 from proceeds earned from the sale of grain in the disaster reserve established in the Agricultural Act of 1970 to implement a livestock indemnity program for losses from natural disasters pursuant to a Presidential or Secretarial declaration requested subsequent to enactment of Public Law 105–18 and prior to December 1, 1997, in a manner similar to catastrophic loss coverage available for other commodities under 7 U.S.C. 1508(b): <proviso><i>Provided,</i> That in administering a program described in the preceding sentence, the Secretary shall, to the extent practicable, utilize gross income and payment limitations conditions established for the Disaster Reserve Assistance Program for the 1996 crop year</proviso>: <proviso><i>Provided further</i>, That the entire amount shall be available only to the extent an official budget request, that includes designation of the entire amount of the request as an emergency requirement as defined in the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, is transmitted by the President to the Congress</proviso>: <proviso><i>Provided further</i>, That the entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended</proviso>.</content></section> <section><num value="634"><inline class="smallCaps">Sec.</inline> 634. </num><content>During fiscal year 1998, from funds available to the Department of Defense, up to $800,000 is available to the Department of Defense to compensate persons who have suffered documented commercial loss of cranberry crops in 1997 in the Mashpee or Falmouth bogs, located on the Quashnet and Coonamessett Rivers, respectively, as a result of the presence of ethylene dibromide (EDB) in or on cranberries from either of the plumes of EDB-contaminated groundwater known as “FS-28” and “FS-1” adjacent to the Massachusetts Military Reservation, Cape Cod, Massachusetts.</content></section> <page identifier="/us/stat/111/2526">111 STAT. 2526</page> <num value="V">TITLE VII—</num><heading>RESCISSIONS</heading> <appropriations level="major"> <heading>DEPARTMENT OF JUSTICE</heading> <appropriations level="intermediate"> <heading>General Administration</heading> <appropriations level="small"> <heading>working capital fund</heading> <subheading>(rescission)</subheading> <content>Of the unobligated balances available under this heading on September 30, 1997, $100,000,000 are rescinded.</content> </appropriations> </appropriations> </appropriations> <num value="V">TITLE VIII—</num><heading>EMERGENCY SUPPLEMENTAL APPROPRIATIONS</heading> <appropriations level="intermediate"> <heading>National Oceanic and Atmospheric Administration</heading> <appropriations level="small"> <heading>operations, research, and facilities</heading> <content><p class="indent0 firstIndent1 fontsize10">For an additional amount for “Operations, Research, and Facilities”, for emergency expenses to provide disaster assistance pursuant to section 312(a) or the Magnuson-Stevens Fishery Conservation and Management Act for the Bristol Bay and Kuskokwim areas of Alaska, $7,000,000 to remain available until expended: <proviso><i>Provided,</i> That the entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended</proviso>: <proviso><i>Provided further</i>, That the entire amount shall be available only to the extent that the Secretary of Commerce transmits a determination that there is a commercial fishery failure</proviso>.</p> <p class="indent0 firstIndent1 fontsize10">This Act may be cited as the “<shortTitle role="act">Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1998</shortTitle>”.</p></content> </appropriations> </appropriations> Approved November 26, 1997.
LEGISLATIVE HISTORY—H.R. 2267 (S. 1022): HOUSE REPORTS: Nos. 105–207 (Comm. on Appropriations) and 105–405 (Comm. of Conference). SENATE REPORTS: No. 105–48, accompanying S. 1022 (Comm. on Appropriations). CONGRESSIONAL RECORD, Vol. 143 (1997):

Sept. 24–26, 30, considered and passed House.

Oct. 1, considered and passed Senate, amended, in lieu of S. 1022.

Nov. 13, House and Senate agreed to conference report.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):

Nov. 26, Presidential statement.

Dec. 2, President's special message on line item veto.

 FEDERAL REGISTER, Vol. 62 (1997):

Dec. 3, Cancellation of item pursuant to the Line Item Veto Act.

 Public Law 105–120: Waiving certain enrollment requirements with respect to certain specified bills of the One Hundred Fifth Congress. Public Law120 Public Law 105–120 111 Stat. 2527 1997-11-26 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2527 Public Law105–120 105th Congress
Joint Resolution Waiving certain enrollment requirements with respect to certain specified bills of the One Hundred Fifth Congress.

Nov. 26, 1997

[H.J. Res. 103]

 Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,
That the provisions

1 USC 106 note.

of sections 106 and 107 of title 1, United States Code, are waived for the balance of the first session of the One Hundred Fifth Congress with respect to the printing (on parchment or otherwise) of the enrollment of any bill or joint resolution making general appropriations for the fiscal year ending on September 30, 1998, or continuing appropriations for the fiscal year ending on September 30, 1998. The enrollment of any such bill or joint resolution shall be in such form as the Committee on House Oversight of the House of Representatives certifies to be a true enrollment.
Approved November 26, 1997.
LEGISLATIVE HISTORY—H.J. Res. 103: CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 9, considered and passed House.

Nov. 13, considered and passed Senate.

 Public Law 105–121: To reauthorize the Export-Import Bank of the United States. Public Law121 Public Law 105–121 111 Stat. 2528 1997-11-26 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2528 Public Law105–121 105th Congress
An Act To reauthorize the Export-Import Bank of the United States.

Nov. 26, 1997

[S. 1026]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Export-Import Bank Reauthorization Act of 1997.

12 USC 635 note.
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.—This Act may be cited as the “Export-Import Bank Reauthorization Act of 1997”. (b) Table of Contents.— Sec. 1. Sec. 2. Sec. 3. Sec. 4. Sec. 5. Sec. 6. Sec. 7. Sec. 8. Sec. 9. Sec. 10. Sec. 11. Sec. 12.
SEC. 2. EXTENSION OF AUTHORITY. (a) In General.—Section 7 of the Export-Import Bank Act of 1945 (12 U.S.C. 635f) is amended by striking “until” and all that follows through “but” and inserting “until the close of business on September 30, 2001, but”. (b)

12 USC 635f note.

Effective Date.—The amendment made by this section shall take effect on September 30, 1997.
SEC. 3. TIED AID CREDIT FUND AUTHORITY. (a) Expenditures From Fund.—Section 10(c)(2) of the Export-Import Bank Act of 1945 (12 U.S.C. 635i-3(c)(2)) is amended by striking “through” and all that follows through “1997”. (b) Authorization.—Section 10(e) of such Act (12 U.S.C. 635i- 3(e)) is amended by striking the first sentence and inserting the following: “There are authorized to be appropriated to the Fund such sums as may be necessary to carry out the purposes of this section.”.
111 STAT. 2529
SEC. 4. EXTENSION OF AUTHORITY TO PROVIDE FINANCING FOR THE EXPORT OF NONLETHAL DEFENSE ARTICLES OR SERVICES THE PRIMARY END USE OF WHICH WILL BE FOR CIVILIAN PURPOSES. Section 1(c) of Public Law 103–428 (12 U.S.C. 635 note; 108 Stat. 4376) is amended by striking “1997” and inserting “2001”.
SEC. 5. CLARIFICATION OF PROCEDURES FOR DENYING CREDIT BASED ON THE NATIONAL INTEREST. Section 2(b)(1)(B) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b)(1)(B)) is amended— (1) in the last sentence, by inserting “, after consultation with the Committee on Banking and Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate,” after “President”; and (2) by adding at the end the following: “Each such determination shall be delivered in writing to the President of the Bank, shall state that the determination is made pursuant to this section, and shall specify the applications or categories of applications for credit which should be denied by the Bank in furtherance of the national interest.”.
SEC. 6. ADMINISTRATIVE COUNSEL. Section 3(e) of the Export-Import Bank Act of 1945 (12 U.S.C. 635a(e)) is amended— (1) by inserting “(1)” after “(e)”; and (2) by adding at the end the following: “(2) The General Counsel of the Bank shall ensure that the directors, officers, and employees of the Bank have available appropriate legal counsel for advice on, and oversight of, issues relating to personnel matters and other administrative law matters by designating an attorney to serve as Assistant General Counsel for Administration, whose duties, under the supervision of the General Counsel, shall be concerned solely or primarily with such issues.”.
SEC. 7. ADVISORY COMMITTEE FOR SUB-SAHARAN AFRICA. (a) In General.—Section 2(b) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b)) is amended by inserting after paragraph (8) the following: “(9)(A) The Board of Directors of the Bank shall take prompt measures, consistent with the credit standards otherwise required by law, to promote the expansion of the Bank’s financial commitments in sub-Saharan Africa under the loan, guarantee, and insurance programs of the Bank. “(B)(i) The Board of Directors shall establish and use an advisory committee to advise the Board of Directors on the development and implementation of policies and programs designed to support the expansion described in subparagraph (A). “(ii) The advisory committee shall make recommendations to the Board of Directors on how the Bank can facilitate greater support by United States commercial banks for trade with sub-Saharan Africa. “(iii) The advisory committee shall terminate 4 years after the date of enactment of this subparagraph.”. (b) Reports to Congress.—Within 6 months after the date

12 USC 635 note.

of enactment of this Act, and annually for each of the 4 years thereafter, the Board of Directors of the Export-Import Bank of the 111 STAT. 2530United States shall submit to Congress a report on the steps that the Board has taken to implement section 2(b)(9)(B) of the Export-Import Bank Act of 1945 and any recommendations of the advisory committee established pursuant to such section.
SEC. 8. INCREASE IN LABOR REPRESENTATION ON THE ADVISORY COMMITTEE OF THE EXPORT-IMPORT BANK Section 3(d)(2) of the Export-Import Bank Act of 1945 (12 U.S.C. 635a(d)(2)) is amended— (1) by inserting “(A)” after “(2)”; and (2) by adding at the end the following: “(B) Not less than 2 members appointed to the Advisory Committee shall be representative of the labor community, except that no 2 representatives of the labor community shall be selected from the same labor union.”.
SEC. 9. OUTREACH TO COMPANIES. Section 2(b)(1) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b)(1)) is amended by adding at the end the following: “(I) The President of the Bank shall undertake efforts to enhance the Bank’s capacity to provide information about the Bank’s programs to small and rural companies which have not previously participated in the Bank’s programs. Not later than 1 year after the date of enactment of this subparagraph, the President of the Bank shall submit to Congress a report on the activities undertaken pursuant to this subparagraph.”.
SEC. 10. CLARIFICATION OF THE OBJECTIVES OF THE EXPORT IMPORTBANK Section 2(b)(1)(A) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b)(1)(A)) is amended in the first sentence by striking “real income” and all that follows to the end period and inserting: “real income, a commitment to reinvestment and job creation, and the increased development of the productive resources of the United States”.
SEC. 11. INCLUDING CHILD LABOR AS A CRITERION FOR DENYING CREDIT BASED ON THE NATIONAL INTEREST. Section 2(b)(1)(B) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b)(1)(B)), as amended by section 5, is amended in the next to the last sentence by inserting “(including child labor)” after “human rights”.
SEC. 12. PROHIBITION RELATING TO RUSSIAN TRANSFERS OF CERTAIN MISSILES TO THE PEOPLE’S REPUBLIC OF CHINA. Section 2(b) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b)) is amended by adding at the end the following: “(12) Prohibition relating to Russian transfers of certain missile systems.—If the President of the United States determines that the military or Government of the Russian Federation has transferred or delivered to the People’s Republic of China an SS-N-22 missile system and that the transfer or delivery represents a significant and imminent threat to the security of the United States, the President of the United States shall notify the Bank of the transfer or delivery as soon as practicable. Upon receipt of the notice and if so directed by the President of the United States, the Board of Directors of the Bank shall not give approval to guarantee, insure, extend 111 STAT. 2531credit, or participate in the extension of credit in connection with the purchase of any good or service by the military or Government of the Russian Federation.”.
Approved November 26, 1997.
LEGISLATIVE HISTORY—S. 1026 (H.R. 1370): HOUSE REPORTS: Nos. 105–224 accompanying H.R. 1370 (Comm. on Banking and Financial Services) and 105–392 (Comm. of Conference). SENATE REPORTS: No. 105–76 (Comm. on Banking, Housing, and Urban Affairs). CONGRESSIONAL RECORD, Vol. 143 (1997):

Sept. 16, considered and passed Senate.

Oct. 6, considered and passed House, amended, in lieu of H.R. 1370.

Nov. 8, Senate agreed to conference report.

Nov. 9, House agreed to conference report.

 Public Law 105–122: To designate the United States courthouse at 200 South Washington Street in Alexandria, Virginia, as the “Martin V. B. Bostetter, Jr. United States Courthouse”. Public Law122 Public Law 105–122111 Stat. 2532 1997-12-01 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2532 Public Law 105–122 105th Congress
An Act To designate the United States courthouse at 200 South Washington Street in Alexandria, Virginia, as the “Martin V. B. Bostetter, Jr. United States Courthouse”.

Dec. 1, 1997

[S. 819]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. DESIGNATION OF MARTIN V. B. BOSTETTER, JR. UNITED STATES COURTHOUSE. The United States courthouse at 200 South Washington Street in Alexandria, Virginia, shall be known and designated as the “Martin V. B. Bostetter, Jr. United States Courthouse”.
SEC. 2. REFERENCES. Any reference in a law, map, regulation, document, paper, or other record of the United States to the United States courthouse referred to in section 1 shall be deemed to be a reference to the “Martin V. B. Bostetter, Jr. United States Courthouse”.
Approved December 1, 1997.
LEGISLATIVE HISTORY—S. 819 (H.R. 1851): HOUSE REPORTS: No. 105–212, accompanying H.R. 1851 (Comm. on Transportation and Infrastructure). CONGRESSIONAL RECORD, Vol. 143 (1997):

June 12, considered and passed Senate.

Sept. 29, Nov. 13, considered and passed House.

 Public Law 105–123: To designate the Federal building courthouse at Public Square and Superior Avenue in Cleveland, Ohio, as the “Howard M. Metzenbaum United States Courthouse”. Public Law123 Public Law 105–123 111 Stat. 2533 1997-12-01 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2533 Public Law105–123 105th Congress
An Act To designate the Federal building courthouse at Public Square and Superior Avenue in Cleveland, Ohio, as the “Howard M. Metzenbaum United States Courthouse”.

Dec. 1, 1997

[S. 833]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. DESIGNATION OF HOWARD M. METZENBAUM UNITED STATES COURTHOUSE. The Federal building courthouse at Public Square and Superior Avenue in Cleveland, Ohio, shall be known and designated as the “Howard M. Metzenbaum United States Courthouse”.
SEC. 2. REFERENCES. Any reference in a law, map, regulation, document, paper, or other record of the United States to the Federal building courthouse referred to in section 1 shall be deemed to be a reference to the “Howard M. Metzenbaum United States Courthouse”.
Approved December 1, 1997.
LEGISLATIVE HISTORY—S. 833: CONGRESSIONAL RECORD, Vol. 143 (1997):

July 25, considered and passed Senate.

Sept. 29, Nov. 13, considered and passed House.

 Public Law 105–124: To provide for a 10-year circulating commemorative coin program to commemorate each of the 50 States, and for other purposes. Public Law124 Public Law 105–124 111 Stat. 2534 1997-12-01 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2534 Public Law105–124 105th Congress
An Act To provide for a 10-year circulating commemorative coin program to commemorate each of the 50 States, and for other purposes.

Dec. 1, 1997

[S. 1228]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

50 States Commemorative Coin Program Act.

31 USC 5101 note.
SECTION 1. SHORT TITLE. This Act may be cited as the “50 States Commemorative Coin Program Act”.
SEC. 2.

31 USC 5112 note.

FINDINGS. The Congress finds that— (1) it is appropriate and timely— (A) to honor the unique Federal republic of 50 States that comprise the United States; and (B) to promote the diffusion of knowledge among the youth of the United States about the individual States, their history and geography, and the rich diversity of the national heritage; (2) the circulating coinage of the United States has not been modernized during the 25-year period preceding the date of enactment of this Act; (3) a circulating commemorative 25-cent coin program could produce earnings of $110,000,000 from the sale of silver proof coins and sets over the 10-year period of issuance, and would produce indirect earnings of an estimated $2,600,000,000 to $5,100,000,000 to the United States Treasury, money that will replace borrowing to fund the national debt to at least that extent; and (4) it is appropriate to launch a commemorative circulating coin program that encourages young people and their families to collect memorable tokens of all of the States for the face value of the coins.
SEC. 3. ISSUANCE OF REDESIGNED QUARTER DOLLARS OVER 10-YEAR PERIOD COMMEMORATING EACH OF THE 50 STATES. Section 5112 of title 31, United States Code, is amended by inserting after subsection (k) the following new subsection: “(l) Redesign and Issuance of Quarter Dollar in Commemoration of Each of the 50 States.— “(1) Redesign beginning in 1999.— “(A) In general.—Notwithstanding the fourth sentence of subsection (d)(1) and subsection (d)(2), quarter dollar coins issued during the 10-year period beginning in 1999, shall have designs on the reverse side selected 111 STAT. 2535in accordance with this subsection which are emblematic of the 50 States. “(B) Transition provision.—Notwithstanding subparagraph (A), the Secretary may continue to mint and issue quarter dollars in 1999 which bear the design in effect before the redesign required under this subsection and an inscription of the year ‘1998’ as required to ensure a smooth transition into the 10-year program under this subsection. “(2) Single state designs.—The design on the reverse side of each quarter dollar issued during the 10-year period referred to in paragraph (1) shall be emblematic of 1 of the 50 States. “(3) Issuance of coins commemorating 5 states during each of the 10 years.— “(A) In general.—The designs for the quarter dollar coins issued during each year of the 10-year period referred to in paragraph (1) shall be emblematic of 5 States selected in the order in which such States ratified the Constitution of the United States or were admitted into the Union, as the case may be. “(B) Number of each of 5 coin designs in each year.—Of the quarter dollar coins issued during each year of the 10-year period referred to in paragraph (1), the Secretary of the Treasury shall prescribe, on the basis of such factors as the Secretary determines to be appropriate, the number of quarter dollars which shall be issued with each of the 5 designs selected for such year. “(4) Selection of design.— “(A) In general.—Each of the 50 designs required under this subsection for quarter dollars shall be— “(i) selected by the Secretary after consultation with— “(I) the Governor of the State being commemorated, or such other State officials or group as the State may designate for such purpose; and “(II) the Commission of Fine Arts; and “(ii) reviewed by the Citizens Commemorative Coin Advisory Committee. “(B) Selection and approval process.—Designs for quarter dollars may be submitted in accordance with the design selection and approval process developed by the Secretary in the sole discretion of the Secretary. “(C) Participation.—The Secretary may include participation by State officials, artists from the States, engravers of the United States Mint, and members of the general public. “(D) Standards.—Because it is important that the Nation’s coinage and currency bear dignified designs of which the citizens of the United States can be proud, the Secretary shall not select any frivolous or inappropriate design for any quarter dollar minted under this subsection. “(E) Prohibition on certain representations.—No head and shoulders portrait or bust of any person, living or dead, and no portrait of a living person may be included in the design of any quarter dollar under this subsection. 111 STAT. 2536 “(5) Treatment as numismatic items.—For purposes of sections 5134 and 5136, all coins minted under this subsection shall be considered to be numismatic items. “(6) Issuance.— “(A) Quality of coins.—The Secretary may mint and issue such number of quarter dollars of each design selected under paragraph (4) in uncirculated and proof qualities as the Secretary determines to be appropriate. “(B) Silver coins.—Notwithstanding subsection (b), the Secretary may mint and issue such number of quarter dollars of each design selected under paragraph (4) as the Secretary determines to be appropriate, with a content of 90 percent silver and 10 percent copper. “(C) Sources of bullion.—The Secretary shall obtain silver for minting coins under subparagraph (B) from available resources, including stockpiles established under the Strategic and Critical Materials Stock Piling Act. “(7) Application in event of the admission of additional states.—If any additional State is admitted into the Union before the end of the 10-year period referred to in paragraph (1), the Secretary of the Treasury may issue quarter dollar coins, in accordance with this subsection, with a design which is emblematic of such State during any 1 year of such 10-year period, in addition to the quarter dollar coins issued during such year in accordance with paragraph (3)(A).”.
SEC. 4.

United States $1 Coin Act of 1997.

31 USC 5101 note.

 UNITED STATES DOLLAR COINS. (a) Short Title.—This section may be cited as the “United States $1 Coin Act of 1997”. (b) Weight.—Section 5112(a)(1) of title 31, United States Code, is amended by striking “and weighs 8.1 grams”. (c) Color and Content.—Section 5112(b) of title 31, United States Code, is amended— (1) in the first sentence, by striking “dollar,”; and (2) by inserting after the fourth sentence the following: “The dollar coin shall be golden in color, have a distinctive edge, have tactile and visual features that make the denomination of the coin readily discernible, be minted and fabricated in the United States, and have similar metallic, anti-counterfeiting properties as United States coinage in circulation on the date of enactment of the United States $1 Coin Act of 1997”. (d) Design.—Section 5112(d)(1) of title 31, United States Code, is amended by striking the fifth and sixth sentences and inserting the following: “The Secretary of the Treasury, in consultation with the Congress, shall select appropriate designs for the obverse and reverse sides of the dollar coin.”. (e)

31 USC 5112 note.

 Production of New Dollar Coins.— (1) In general.—Upon the depletion of the Government’s supply (as of the date of enactment of this Act) of $1 coins bearing the likeness of Susan B. Anthony, the Secretary of the Treasury shall place into circulation $1 coins that comply with the requirements of subsections (b) and (d)(1) of section 5112 of title 31, United States Code, as amended by this section. (2) Authority of secretary to continue production.—If the supply of $1 coins bearing the likeness of Susan B. Anthony is depleted before production has begun of $1 coins 111 STAT. 2537which bear a design which complies with the requirements of subsections (b) and (d)(1) of section 5112 of title 31, United States Code, as amended by this section, the Secretary of the Treasury may continue to mint and issue $1 coins bearing the likeness of Susan B. Anthony in accordance with that section 5112 (as in effect on the day before the date of enactment of this Act) until such time as production begins. (3) Numismatic sets.—The Secretary may include such $1 coins in any numismatic set produced by the United States Mint before the date on which the $1 coins authorized by this section are placed in circulation. (f) Marketing Program .—

31 USC 5112 note.

 (1) In general.—Before placing into circulation $1 coins authorized under this section, the Secretary of the Treasury shall adopt a program to promote the use of such coins by commercial enterprises, mass transit authorities, and Federal, State, and local government agencies. (2) Study required.—The Secretary of the Treasury shall conduct a study on the progress of the marketing program adopted in accordance with paragraph (1). (3) Report.—Not later than March 31, 2001, the Secretary of the Treasury shall submit a report to the Congress on the results of the study conducted pursuant to paragraph (2).
SEC. 5. RULE OF CONSTRUCTION.

31 USC 5112 note.

 Nothing in this Act or the amendments made by this Act shall be construed to evidence any intention to eliminate or to limit the printing or circulation of United States currency in the $1 denomination.
SEC. 6. FIRST FLIGHT COMMEMORATIVE COINS.

31 USC 5112 note.

 (a) Coin Specifications.— (1) Denominations.—The Secretary of the Treasury (hereafter in this section referred to as the “Secretary”) shall mint and issue the following coins: (A) $10 gold coins.—Not more than 100,000 $10 coins, each of which shall— (i) weigh 16.718 grams; (ii) have a diameter of 1.06 inches; and (iii) contain 90 percent gold and 10 percent alloy. (B) $1 silver coins.—Not more than 500,000 $1 coins, each of which shall— (i) weigh 26.73 grams; (ii) have a diameter of 1.500 inches; and (iii) contain 90 percent silver and 10 percent copper. (C) Half dollar clad coins.—Not more than 750,000 half dollar coins each of which shall— (i) weigh 11.34 grams; (ii) have a diameter of 1.205 inches; and (iii) be minted to the specifications for half dollar coins contained in section 5112(b) of title 31, United States Code. (b) Legal Tender.—The coins minted under this section shall be legal tender, as provided in section 5103 of title 31, United States Code. (c) Sources of Bullion.—The Secretary shall obtain gold and silver for minting coins under this section pursuant to the authority of 111 STAT. 2538the Secretary under other provisions of law, including authority relating to the use of silver stockpiles established under the Strategic and Critical Materials Stockpiling Act, as applicable. (d) Design of Coins.— (1) Design requirements.— (A) In general.—The design of the coins minted under this section shall be emblematic of the first flight of Orville and Wilbur Wright in Kitty Hawk, North Carolina, on December 17, 1903. (B) Designation and inscriptions.—On each coin minted under this section there shall be— (i) a designation of the value of the coin; (ii) an inscription of the year “2003”; and (iii) inscriptions of the words “Liberty”, “In God We Trust”, “United States of America”, and “E Pluribus Unum”. (2) Selection.—The design for the coins minted under this section shall be— (A) selected by the Secretary after consultation with the Board of Directors of the First Flight Foundation and the Commission of Fine Arts; and (B) reviewed by the Citizens Commemorative Coin Advisory Committee. (e) Period for Issuance of Coins.—The Secretary may issue coins minted under this section only during the period beginning on August 1, 2003, and ending on July 31, 2004. (f) Sale of Coins.— (1) Sale price.—The coins issued under this section shall be sold by the Secretary at a price equal to the sum of— (A) the face value of the coins; (B) the surcharge provided in paragraph (4) with respect to such coins; and (C) the cost of designing and issuing the coins (including labor, materials, dies, use of machinery, overhead expenses, marketing, and shipping). (2) Bulk sales.—The Secretary shall make bulk sales of the coins issued under this section at a reasonable discount. (3) Prepaid orders.— (A) In general.—The Secretary shall accept prepaid orders for the coins minted under this section before the issuance of such coins. (B) Discount.—Sale prices with respect to prepaid orders under subparagraph (A) shall be at a reasonable discount. (4) Surcharges.—All sales shall include a surcharge of— (A) $35 per coin for the $10 coin; (B) $10 per coin for the $1 coin; and (C) $1 per coin for the half dollar coin. (g) General Waiver of Procurement Regulations.— (1) In general.—Except as provided in paragraph (2), no provision of law governing procurement or public contracts shall be applicable to the procurement of goods and services necessary for carrying out the provisions of this Act. (2) Equal employment opportunity.—Paragraph (1) does not relieve any person entering into a contract under the 111 STAT. 2539authority of this section from complying with any law relating to equal employment opportunity. (h) Treatment as Numismatic Items.—For purposes of sections 5134 and 5136 of title 31, United States Code, all coins minted under this subsection shall be considered to be numismatic items. (i) Distribution of Surcharges.— (1) In general.—Subject to section 5134 of title 31, United States Code, all surcharges received by the Secretary from the sale of coins issued under this section shall be promptly paid by the Secretary to the First Flight Foundation for the purposes of— (A) repairing, refurbishing, and maintaining the Wright Brothers Monument on the Outer Banks of North Carolina; and (B) expanding (or, if necessary, replacing) and maintaining the visitor center and other facilities at the Wright Brothers National Memorial Park on the Outer Banks of North Carolina, including providing educational programs and exhibits for visitors. (2) Audits.—The Comptroller General of the United States shall have the right to examine such books, records, documents, and other data of the First Flight Foundation as may be related to the expenditures of amounts paid under paragraph (1). (j) Financial Assurances.—The Secretary shall take such actions as may be necessary to ensure that minting and issuing coins under this section will not result in any net cost to the United States Government.
Approved December 1, 1997.
LEGISLATIVE HISTORY—S. 1228: SENATE REPORTS: No. 105–130 (Comm. on Banking, Housing, and Urban Affairs). CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 9, considered and passed Senate.

Nov. 13, considered and passed House.

 Public Law 105–125: To amend the Communications Act of 1934 to provide for the designation of common carriers not subject to the jurisdiction of a State commission as eligible telecommunications carriers. Public Law125 Public Law 105–125 111 Stat. 2540 1997-12-01 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2540 Public Law105–125 105th Congress
An Act To amend the Communications Act of 1934 to provide for the designation of common carriers not subject to the jurisdiction of a State commission as eligible telecommunications carriers.

Dec. 1, 1997

[S. 1354]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. AMENDMENT OF COMMUNICATIONS ACT OF 1934. Section 214(e) of the Communications Act of 1934 (47 U.S.C. 214(e)) is amended— (1) by striking “(2) or (3)” in paragraph (1) and inserting “(2), (3), or (6)”; (2) by striking “interstate services,” in paragraph (3) and inserting “interstate services or an area served by a common carrier to which paragraph (6) applies,”; (3) by inserting “(or the Commission in the case of a common carrier designated under paragraph (6))” in paragraph (4) after “State commission” each place such term appears; (4) by inserting “(or the Commission under paragraph (6))” in paragraph (5) after “State commission”; and (5) by inserting after paragraph (5) the following: “(6) Common carriers not subject to state commission jurisdiction.—In the case of a common carrier providing telephone exchange service and exchange access that is not subject to the jurisdiction of a State commission, the Commission shall upon request designate such a common carrier that meets the requirements of paragraph (1) as an eligible telecommunications carrier for a service area designated by the Commission consistent with applicable Federal and State law. Upon request and consistent with the public interest, convenience and necessity, the Commission may, with respect to an area served by a rural telephone company, and shall, in the case of all other areas, designate more than one common carrier as an eligible telecommunications carrier for a service area designated under this paragraph, so long as each additional requesting 111 STAT. 2541carrier meets the requirements of paragraph (1). Before designating an additional eligible telecommunications carrier for an area served by a rural telephone company, the Commission shall find that the designation is in the public interest.”.
Approved December 1, 1997.
LEGISLATIVE HISTORY—S. 1354: CONGRESSIONAL RECORD. Vol. 143 (1997):

Nov. 9, considered and passed Senate.

Nov. 13, considered and passed House.

 Public Law 105–126: To extend the authorization of use of official mail in the location and recovery of missing children, and for other purposes. Public Law126 Public Law 105–126 111 Stat. 2542 1997-12-01 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2542 Public Law105–126 105th Congress
An Act To extend the authorization of use of official mail in the location and recovery of missing children, and for other purposes.

Dec. 1, 1997

[S. 1378]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. EXTENSION OF AUTHORIZATION OF USE OF OFFICIAL MAIL IN THE LOCATION AND RECOVERY OF MISSING CHILDREN. The Act entitled “An Act to amend title 3, United States Code, to authorize the use of penalty and franked mail in efforts relating to the location and recovery of missing children”, approved August 9, 1985 (39 U.S.C. 3220 note; Public Law 99–87), is amended— (1)

39 USC 3220 note.

 in section 3(a) by striking “June 30, 1997” and inserting “June 30, 2002”; and (2)

39 USC 3220 note.

in section 5 by striking “December 31, 1997” and inserting “December 31, 2002”.
Approved December 1, 1997.
LEGISLATIVE HISTORY—S. 1378: CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 5, considered and passed Senate.

Nov. 12, considered and passed House.

 Public Law 105–127: To provide for the design, construction, furnishing and equipping of a Center for Performing Arts within the complex known as the New Mexico Hispanic Cultural Center and for other purposes. Public Law127 Public Law 105–127 111 Stat. 2543 1997-12-01 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2543 Public Law105–127 105th Congress
An Act To provide for the design, construction, furnishing and equipping of a Center for Performing Arts within the complex known as the New Mexico Hispanic Cultural Center and for other purposes.

Dec. 1, 1997

[S. 1417]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Hispanic Cultural Center Act of 1997.
SECTION 1. SHORT TITLE. This Act may be cited as the “Hispanic Cultural Center Act of 1997”.
SEC. 2. CONSTRUCTION OF A CENTER FOR PERFORMING ARTS. (a) Findings.—Congress makes the following findings: (1) The United States has an enriched legacy of Hispanic influence in politics, government, economic development, and cultural expression. (2) The Hispanic culture in what is now the United States can be traced to 1528 when a Spanish expedition from Cuba to Florida was shipwrecked on the Texas coast. (3) The Hispanic culture in New Mexico can be traced to 1539 when a Spanish Franciscan Friar, Marcos de Niza, and his guide, Estevanico, traveled into present day New Mexico in search of the fabled city of Cibola and made contact with the people of Zuni. (4) The Hispanic influence in New Mexico is particularly dominant and a part of daily living for all the citizens of New Mexico, who are a diverse composite of racial, ethnic, and cultural peoples. Don Juan de Oñate and the first New Mexican families established the first capital in the United States, San Juan de los Caballeros, in July of 1598. (5) Based on the 1990 census, there are approximately 650,000 Hispanics in New Mexico, the majority having roots reaching back ten or more generations. (6) There are an additional 200,000 Hispanics living outside of New Mexico with roots in New Mexico. (7) The New Mexico Hispanic Cultural Center is a living tribute to the Hispanic experience and will provide all citizens of New Mexico, the Southwestern United States, the entire United States, and around the world, an opportunity to learn about, partake in, and enjoy the unique Hispanic culture, and the New Mexico Hispanic Cultural Center will assure that this 400-year old culture is preserved. 111 STAT. 2544 (8) The New Mexico Hispanic Cultural Center will teach, showcase, and share all facets of Hispanic culture, including literature, performing arts, visual arts, culinary arts, and language arts. (9) The New Mexico Hispanic Cultural Center will promote a better cross-cultural understanding of the Hispanic culture and the contributions of individuals to the society in which we all live. (10) In 1993, the legislature and Governor of New Mexico created the Hispanic Cultural Division as a division within the Office of Cultural Affairs. One of the principal responsibilities of the Hispanic Cultural Division is to oversee the planning, construction, and operation of the New Mexico Hispanic Cultural Center. (11) The mission of the New Mexico Hispanic Cultural Center is to create a greater appreciation and understanding of Hispanic culture. (12) The New Mexico Hispanic Cultural Center will serve as a local, regional, national, and international site for the study and advancement of Hispanic culture, expressing both the rich history and the forward-looking aspirations of Hispanics throughout the world. (13) The New Mexico Hispanic Cultural Center will be a Hispanic arts and humanities showcase to display the works of national and international artists, and to provide a venue for educators, scholars, artists, children, elders, and the general public. (14) The New Mexico Hispanic Cultural Center will provide a venue for presenting the historic and contemporary representations and achievements of the Hispanic culture. (15) The New Mexico Hispanic Cultural Center will sponsor arts and humanities programs, including programs related to visual arts of all forms (including drama, dance, and traditional and contemporary music), research, literary arts, genealogy, oral history, publications, and special events such as, fiestas, culinary arts demonstrations, film video productions, storytelling presentations and education programs. (16) Phase I of the New Mexico Hispanic Cultural Center complex is scheduled to be completed by August of 1998 and is planned to consist of an art gallery with exhibition space and a museum, administrative offices, a restaurant, a ballroom, a gift shop, an amphitheater, a research and literary arts center, and other components. (17) Phase II of the New Mexico Hispanic Cultural Center complex is planned to include a performing arts center (containing a 700-seat theater, a stage house, and a 300-seat film/video theater), a 150-seat black box theater, an art studio building, a culinary arts building, and a research and literary arts building. 111 STAT. 2545 (18) It is appropriate for the Federal Government to share in the cost of constructing the New Mexico Hispanic Cultural Center because Congress recognizes that the New Mexico Hispanic Cultural Center has the potential to be a premier facility for performing arts and a national repository for Hispanic arts and culture. (b) Definitions.—In this section: (1) Center.—The term “Center” means the Center for Performing Arts, within the complex known as the New Mexico Hispanic Cultural Center, which Center for the Performing Arts is a central facility in Phase II of the New Mexico Hispanic Cultural Center complex. (2) Hispanic cultural division.—The term “Hispanic Cultural Division” means the Hispanic Cultural Division of the Office of Cultural Affairs of the State of New Mexico. (3) Secretary.—The term “Secretary” means the Secretary of the Interior. (c) Construction of Center.—The Secretary shall award a grant to New Mexico to pay for the Federal share of the costs of the design, construction, furnishing, and equipping of the Center for Performing Arts that will be located at a site to be determined by the Hispanic Cultural Division, within the complex known as the New Mexico Hispanic Cultural Center. (d) Grant Requirements.— (1) In general.—In order to receive a grant awarded under subsection (c), New Mexico, acting through the Director of the Hispanic Cultural Division— (A) shall submit to the Secretary, within 30 days of the date of enactment of this section, a copy of the New Mexico Hispanic Cultural Center Program document dated January 1996; and (B) shall exercise due diligence to expeditiously execute, in a period not to exceed 90 days after the date of enactment of this section, the memorandum of understanding under paragraph (2) recognizing that time is of the essence for the construction of the Center because 1998 marks the 400th anniversary of the first permanent Spanish settlement in New Mexico. (2) Memorandum of understanding.—The memorandum of understanding described in paragraph (1) shall provide— (A) the date of completion of the construction of the Center; (B) that Antoine Predock, an internationally recognized architect, shall be the supervising architect for the construction of the Center or any other architect subsequently named by the State; (C) that the Director of the Hispanic Cultural Division shall award the contract for architectural engineering and design services in accordance with the New Mexico Procurement Code; and (D) that the contract for the construction of the Center— (i) shall be awarded pursuant to a competitive bidding process; and (ii) shall be awarded not later than 3 months after the solicitation for bids for the construction of the Center. 111 STAT. 2546 (3) Federal share.—The Federal share of the costs described in subsection (c) shall be 50 percent. (4) Non-federal share.—The non-Federal share of the costs described in subsection (c) shall be in cash or in kind fairly evaluated, including plant, equipment, or services. The non-Federal share shall include any contribution received by New Mexico for the design, construction, furnishing, or equipping of Phase I or Phase II of the New Mexico Hispanic Cultural Center complex prior to the date of enactment of this section. The non-Federal share of the costs described in subsection (c) shall include the following: (A) $16,410,000 that was appropriated by the New Mexico legislature since January 1, 1993, for the planning, property acquisition, design, construction, furnishing, and equipping of the New Mexico Hispanic Cultural Center complex. (B) $116,000 that was appropriated by the New Mexico legislature for fiscal year 1995 for the startup and operating expenses of the New Mexico Hispanic Cultural Center. (C) $226,000 that was appropriated by the New Mexico legislature for fiscal year 1996 for the startup and operating expenses of the New Mexico Hispanic Cultural Center. (D) $442,000 that was appropriated by the New Mexico legislature for fiscal year 1997 for the startup and operating expenses of the New Mexico Hispanic Cultural Center. (E) $551,000 that was appropriated by. the New Mexico legislature for fiscal year 1998 for the startup and operating expenses of the New Mexico Hispanic Cultural Center. (F) A 10.9-acre lot with a historic 22,000 square foot building donated by the Mayor and City Council of Albuquerque, New Mexico, to New Mexico for the New Mexico Hispanic Cultural Center. (G) 12 acres of “Bosque” land adjacent to the New Mexico Hispanic Cultural Center complex for use by the New Mexico Hispanic Cultural Center. (H) The $30,000 donation by the Sandia National Laboratories and Lockheed Martin Corporation to support the New Mexico Hispanic Cultural Center and the program activities of the New Mexico Hispanic Cultured Center. (e) Use of Funds for Design, Construction, Furnishing, and Equipment.—The funds received under a grant awarded under subsection (c) shall be used only for the design, construction, management, inspection, furnishing, and equipment of the Center. 111 STAT. 2547 (f) Authorization of Appropriations.—There is authorized to be appropriated to the Secretary to carry out this section a total of $17,800,000 for fiscal year 1998 and succeeding fiscal years. Funds appropriated pursuant to the authority of the preceding sentence snail remain available until expended.
Approved December 1, 1997.
LEGISLATIVE HISTORY—S. 1417: CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 7, considered and passed Senate.

Nov. 13, considered and passed House.

 Public Law 105–128: To make technical and conforming amendments to the Museum and Library Services Act, and for other purposes. Public Law128 Public Law 105–128 111 Stat. 2548 1997-12-01 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2548 Public Law105–128 105th Congress
An Act To make technical and conforming amendments to the Museum and Library Services Act, and for other purposes.

Dec. 1, 1997

[S. 1505]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Museum and Library Services Technical and Conforming Amendments of 1997.

20 USC 9101 note.
SECTION 1. SHORT TITLE. This Act may be cited as the “Museum and Library Services Technical and Conforming Amendments of 1997”.
SEC. 2.

20 USC 9105.

APPOINTMENT OF EMPLOYEES. Section 206 of the Museum and Library Services Act (20 U.S.C. 9105 et seq.) is amended— (1) by redesignating subsection (b) as subsection (c); and (2) by inserting after subsection (a) the following: “(b) Appointment and Compensation of Technical and Professional Employees..— “(1) In general.—Subject to paragraph (2), the Director may appoint without regard to the provisions of title 5, United States Code, governing the appointment in the competitive service and may compensate without regard to the provisions of chapter 51 or subchapter III of chapter 53 of such title (relating to the classification and General Schedule pay rates), such technical and professional employees as the Director determines to be necessary to carry out the duties of the Institute. “(2) Number and compensation.—The number of employees appointed and compensated under paragraph (1) shall not exceed ⅕ of the number of full-time regular or professional employees of the Institute. The rate of basic compensation for the employees appointed and compensated under paragraph (1) may not exceed the rate prescribed for level GS-15 of the General Schedule under section 5332 of title 5.”.
SEC. 3. SPECIAL LIBRARIES. Section 213(2)(E) of the Museum and Library Services Act (20 U.S.C. 9122(2)(E)) is amended— (1) by inserting “or other special library” after “a private library”; and (2) by inserting “or special” after “such private”.
SEC. 4. RESERVATIONS. Section 221(a)(1) of the Museum and Library Services Act (20 U.S.C. 9131(a)(1)) is amended— (1) in subparagraph (A), by striking “1½ percent” and inserting “1.75 percent”; and 111 STAT. 2549 (2) in subparagraph (B), by striking “4 percent” and inserting “3.75 percent”.
SEC. 5. MAINTENANCE OF EFFORT. The second sentence of section 223(c)(1)(A)(i) of the Museum and Library Services Act (20 U.S.C. 9133(c)(1)(A)(i)) is amended to read as follows: “The amount of the reduction in the allotment for any fiscal year shall be equal to the allotment multiplied by a fraction— “(I) the numerator of which is the result obtained by subtracting the level of such State expenditures for the fiscal year for which the determination is made, from tie average of the total level of such State expenditures for the 3 fiscal years preceding the fiscal year for which the determination is made; and “(II) the denominator of which is the average of the total level of such State expenditures for the 3 fiscal years preceding the fiscal year for which the determination is made.”.
SEC. 6. SERVICE TO INDIAN TRIBES. of the Museum and Library Services Act (20 U.S.C. 9161) is amended— (1) in the section heading, by striking “INDIAN TRIBES” and inserting “NATIVE AMERICANS”; and (2) by striking “to organizations” and all that follows through “such organizations” and inserting “to Indian tribes and to organizations that primarily serve and represent Native Hawaiians (as the term is defined in section 9212 of the Native Hawaiian Education Act (20 U.S.C. 7912) to enable such tribes and organizations”.
SEC. 7. NATIONAL LEADERSHIP GRANTS OR CONTRACTS. Section 262 of the Museum and Library Services Act (20 U.S.C. 9162) is amended— (1) in the section heading, by striking “NATIONAL LEADERSHIP GRANTS OR CONTRACTS” and inserting “NATIONAL LEADERSHIP GRANTS, CONTRACTS, OR COOPERATIVE AGREEMENTS”; (2) in subsection (a)— (A) by striking “program awarding national leadership grants or contracts” and inserting “program of awarding grants or entering into contracts or cooperative agreements”; and (B) by striking “Such grants or contracts” and inserting “Such grants, contracts, and cooperative agreements”; (3) in subsection (b)— (A) in the section heading, by striking “(b) Grants or Contracts” and inserting “(b) Grants, Contracts, or Cooperative Agreements”; and (B) in paragraph (1), by inserting “or cooperative agreements,” after “contracts”; and (C) in paragraph (2), by striking “Grants and contracts” and inserting “Grants, contracts, and cooperative agreements”.
111 STAT. 2550
SEC. 8. CORRECTION OF TYPOGRAPHICAL ERROR. Section 262(a)(3) of the Museum and Library Services Act (20 U.S.C. 9162(a)(3)) is amended by striking “preservation of digitization” and inserting “preserving or digitization”.
Approved December 1, 1997.
LEGISLATIVE HISTORY—S. 1505: CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 9, considered and passed Senate.

Nov. 13, considered and passed House.

 Public Law 105–129: To amend the National Defense Authorization Act for Fiscal Year 1998 to make certain technical corrections. Public Law129 Public Law 105–129 111 Stat. 2551 1997-12-01 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2551 Public Law105–129 105th Congress
An Act To amend the National Defense Authorization Act for Fiscal Year 1998 to make certain technical corrections.

Dec. 1, 1997

[S. 1507]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. TECHNICAL CORRECTIONS. (a) Implementation of Electronic Commerce Capability.—(1) Section 2302c(a)(l) of title 10, United States Code, is amended by inserting “of section 2303(a) of this title” after “paragraphs (1), (5), and (6)”. (2) The amendment made by paragraph (1) shall take effect

10 USC 2302c note.

as if included in the amendment to section 2302c of title 10, United States Code, made by section 850(f)(3)(A) of the National Defense Authorization Act for Fiscal Year 1998 to which the amendment made by paragraph (1) relates. (b) Commemoration of 50th Anniversary of Korean Conflict.—(1) Section 1083(f) of the National Defense Authorization Act for Fiscal Year 1998 is amended by striking out “$100,000”

Ante, p. 1918.

and inserting in lieu thereof “$1,000,000”. (2) The amendment made by paragraph (1) shall take effect

10 USC 113 note.

as if included in the provisions of the National Defense Authorization Act for Fiscal Year 1998 to which such amendment relates.
Approved December 1, 1997.
LEGISLATIVE HISTORY—S. 1507: CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 9, considered and passed Senate.

Nov. 12, considered and passed House.

 Public Law 105–130: To provide a 6-month extension of highway, highway safety, and transit programs pending enactment of a law reauthorizing the Intermodal Surface Transportation Efficiency Act of 1991. Public Law130 Public Law 105–130 111 Stat. 2552 1997-12-01 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2552 Public Law105–130 105th Congress
An Act To provide a 6-month extension of highway, highway safety, and transit programs pending enactment of a law reauthorizing the Intermodal Surface Transportation Efficiency Act of 1991.

Dec. 1, 1997

[S. 1519]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Surface Transportation Extension Act of 1997.
SECTION 1.

23 USC 101 note.

SHORT TITLE.This Act may be cited as the “Surface Transportation Extension Act of 1997”.
SEC. 2.

23 USC 104 note.

ADVANCES. (a) In General.—The Secretary of Transportation (referred to in this Act as the “Secretary”) shall apportion funds made available under section 1003(d) of the Intermodal Surface Transportation Efficiency Act of 1991 to each State in the ratio that— (1) the State’s total fiscal year 1997 obligation authority for funds apportioned for the Federal-aid highway program; bears to (2) all States’ total fiscal year 1997 obligation authority for funds apportioned for the Federal-aid highway program. (b) Programmatic Distributions.— (1) Programs.—Of the funds to be apportioned to each State under subsection (a), the Secretary shall ensure that the State is apportioned an amount of the funds, determined under paragraph (2), for the Interstate maintenance program, the National Highway System, the bridge program, the surface transportation program, the congestion mitigation and air quality improvement program, minimum allocation under section 157 of title 23, United States Code, Interstate reimbursement under section 160 of that title, the donor State bonus under section 1013(c) of the Intermodal Surface Transportation Efficiency Act of 1991 (105 Stat. 1940), hold harmless under section 1015(a) of that Act (105 Stat. 1943), 90 percent of payments adjustments under section 1015(b) of that Act (105 Stat. 1944), section 1015(c) of that Act (105 Stat. 1944), an amount equal to the funds provided under sections 1103 through 1108 of that Act (105 Stat. 2027), and funding restoration under section 202 of the National Highway System Designation Act of 1995 (109 Stat. 571). (2) In general.—The amount that each State shall be apportioned under this subsection for each item referred to in paragraph (1) shall be determined by multiplying— (A) the amount apportioned to the State under subsection (a); by 111 STAT. 2553 (B) the ratio that— (i) the amount of funds apportioned for the item, or allocated under sections 1103 through 1108 of the Intermodal Surface Transportation Efficiency Act of 1991 (105 Stat. 2027), to the State for fiscal year 1997; bears to (ii) the total of the amount of funds apportioned for the items, and allocated under those sections, to the State for fiscal year 1997. (3) Use of funds.—Amounts apportioned to a State under subsection (a) attributable to sections 1103 through 1108 of the Intermodal Surface Transportation Efficiency Act of 1991 shall be available to the State for projects eligible for assistance under chapter 1 of title 23, United States Code. (4) Administration.—Funds authorized by the amendment made by subsection (d) shall be administered as if they had been apportioned, allocated, deducted, or set aside, as the case may be, under title 23, United States Code; except that the deduction under section 104(a) of title 23, United States Code, the set-asides under section 104(b)(1) of that title for the territories and under section 104(f)(1) of that title for metropolitan planning, and the expenditure required under section 104(d)(1) of that title shall not apply to those funds. (c) Repayment From Future Apportionments.— (1) In general.—The Secretary shall reduce the amount that would, but for this section, be apportioned to a State for programs under chapter 1 of title 23, United States Code, for fiscal year 1998 under a law reauthorizing the Federal- aid highway program enacted after the date of enactment of this Act by the amount that is apportioned to each State under subsection (a) and section 5(f) for each such program. (2) Program category reconciliation.—The Secretary may establish procedures under which funds apportioned under subsection (a) for a program category for which funds are not authorized under a law described in paragraph (1) may be restored to the Federal-aid highway program. (d) Authorization of Contract Authority.—Section 1003 of the Intermodal Surface Transportation Efficiency Act of 1991 (105 Stat. 1918) is amended by adding at the end the following: “(d) Advance Authorizations.— “(1) In general.—There shall be available from the Highway Trust Fund (other than the Mass Transit Account) to carry out section 2(a) of the Surface Transportation Extension Act of 1997 $5,500,000,000 for the period of November 16, 1997, through January 31, 1998. “(2) Special rule.—Funds apportioned under subsection (a) shall be subject to any limitation on obligations for Federal- aid highways and highway safety construction programs. “(e) Authorization of Contract Authority.— “(1) Authorization.—Notwithstanding section 157(e) of title 23, United States Code, there shall be available from the Highway Trust Fund (other than the Mass Transit Account) to carry out section 157 of title 23, United States Code, not to exceed $15,460,000 for the period of January 26, 1998, through January 31, 1998. 111 STAT. 2554 “(2) Allocation.—The Secretary shall allocate the amounts authorized under paragraph (1) to each State in the ratio that— “(A) the amount allocated to the State for fiscal year 1997 under section 157 of that title; bears to “(B) the amounts allocated to all States for fiscal year 1997 under section 157 of that title. “(f) Contract Authority.—Funds authorized under subsections (d) and (e) shall be available for obligation in the same manner as if the funds were apportioned under chapter 1 of title 23, United States Code.” (e) Limitation on Obligations.— (1) In general.—Subject to paragraph (2), after the date of enactment of this Act, the Secretary shall allocate to each State an amount of obligation authority made available under the Department of Transportation and Related Agencies Appropriations Act, 1998 (Public Law 105–66) that is— (A) equal to the greater of— (i) the State’s unobligated balance, as of October 1, 1997, of Federal-aid highway apportionments subject to any limitation on obligations; or (ii) 50 percent of the State’s total fiscal year 1997 obligation authority for funds apportioned for the Federal-aid highway program; but (B) not greater than 75 percent of the State’s total fiscal year 1997 obligation authority for funds apportioned for the Federal-aid highway program. (2) Limitation on amount.—The total of all allocations under paragraph (1) shall not exceed $9,786,275,000. (3) Time period for obligations of funds.— (A) In general.—Except as provided in subparagraph (B), a State shall not obligate any funds for any Federal- aid highway program project after May 1, 1998, until the earlier of the date of enactment of a multiyear law reauthorizing the Federal-aid highway program or July 1, 1998. (B) Reobligation.—Subparagraph (A) shall not preclude the reobligation of previously obligated funds. (C) Distribution of remaining obligation authority.—On the earlier of the date of enactment of a law described in subparagraph (A) or July 1, 1998, the Secretary shall distribute to each State any remaining amounts of obligation authority for Federal-aid highways and highway safety construction programs by allocation in accordance with section 310(a) of the Department of Transportation and Related Agencies Appropriations Act, 1998 (Public Law 105–66). (D) Contract authority.—No contract authority made available to the States prior to July 1, 1998, shall be obligated after that date until such time as a multiyear law reauthorizing the Federal-aid highway program has been enacted. (4) Treatment of obligations.—Any obligation of an allocation of obligation authority made under this subsection shall be considered to be an obligation for Federal-aid highways and highway safety construction programs for fiscal year 1998 for the purposes of the matter under the heading “(limitation on 111 STAT. 2555obligations)” under the heading “Federal-Aid Highways” in title I of the Department of Transportation and Related Agencies Appropriations Act, 1998 (Public Law 105–66).
SEC. 3. TRANSFERS OF UNOBLIGATED APPORTIONMENTS. (a) In General.—In addition to any other authority of a State to transfer funds, for fiscal year 1998, a State may transfer any funds apportioned to the State for any program under section 104 (including amounts apportioned under section 104(b)(3) or set aside or suballocated under section 133(d)), 144, or 402 of title 23, United States Code, before, on, or after the date of enactment of this Act, granted to the State for any program under section 410 of that title before, on, or after such date of enactment, or allocated to the State for any program under chapter 311 of title 49, United States Code, before, on, or after such date of enactment, that are subject to any limitation on obligations, and that are not obligated, to any other of those programs. (b) Treatment of Transferred Funds.—Any funds transferred to another program under subsection (a) shall be subject to the provisions of the program to which the funds are transferred, except that funds transferred to a program under section 133 (other than subsections (d)(1) and (d)(2)) of title 23, United States Code, shall not be subject to section 133(d) of that title. (c) Restoration of Apportionments.— (1) In general.—As soon as practicable after the date of enactment of a law reauthorizing the Federal-aid highway program enacted after the date of enactment of this Act, the Secretary shall restore any funds that a State transferred under subsection (a) for any project not eligible for the funds but for this section to the program category from which the funds were transferred. (2) Program category reconciliation.—The Secretary may establish procedures under which funds transferred under subsection (a) from a program category for which funds are not authorized may be restored to the Federal-aid highway, highway safety, and motor carrier safety programs. (3) Limitation on statutory construction.—No provision of law, except a statute enacted after the date of enactment of this Act that expressly limits the application of this subsection, shall impair the authority of the Secretary to restore funds pursuant to this subsection. (d) Guidance.—The Secretary may issue guidance for use in carrying out this section.
SEC. 4. ADMINISTRATIVE EXPENSES. (a) Expenses of Federal Highway Administration.— (1) Authority to borrow.— (A) From unobligated funds available for discretionary allocations.—If unobligated balances of funds deducted by the Secretary under section 104(a) of title 23, United States Code, for administrative and research expenses of the Federal-aid highway program are insufficient to pay those expenses for fiscal year 1998, the Secretary may borrow to pay those expenses not to exceed $60,000,000 from unobligated funds available to the Secretary for discretionary allocations. (B) Requirement to reimburse.—Funds borrowed under subparagraph (A) shall be reimbursed from amounts 111 STAT. 2556made available to the Secretary under section 104(a) of title 23, United States Code, as soon as practicable after the date of enactment of a law reauthorizing the Federal-aid highway program enacted after the date of enactment of this Act. (2) Authorization of contract authority.— (A) In general.—In addition to funds made available under paragraph (1), there shall be available from the Highway Trust Fund (other than the Mass Transit Account) for administrative and research expenses of the Federal-aid highway program $158,500,000 for fiscal year 1998. (B) Contract authority.—Funds authorized under this paragraph shall be available for obligation in the same manner as if the funds were apportioned under chapter 1 of title 23, United States Code, and shall be subject to any limitation on obligations for Federal-aid highways and highway safety construction programs. (3) Use of certain administrative funds.—Section 104(i)(1) of title 23, United States Code, is amended by inserting “, and for the period of October 1, 1997, through March 31, 1998,” after “1997”. (b) Bureau of Transportation Statistics.—Section 6006 of the Intermodal Surface Transportation Efficiency Act of 1991 (105 Stat. 2172) is amended— (1)

49 USC 111.

by inserting “(a) In General.—” before “Chapter I”; and (2) in the first sentence of subsection (b)— (A) by striking “1996, and” and inserting “1996,”; and (B) by inserting before the period at the end the following: “, and $12,500,000 for the period of October 1, 1997, through March 31, 1998”.
SEC. 5. OTHER FEDERAL-AID HIGHWAY PROGRAMS. (a) Federal Lands Highways.—Section 1003(a)(6) of the Intermodal Surface Transportation Efficiency Act of 1991 (105 Stat. 1919) is amended— (1) in subparagraph (A)— (A) by striking “1992 and” and inserting “1992,”; and (B) by inserting before the period at the end the following: “, and $95,500,000 for the period of October 1, 1997, through March 31, 1998”; (2) in subparagraph (B)— (A) by striking “1995, and” and inserting “1995,”; and (B) by inserting before the period at the end the following: “and $86,000,000 for the period of October 1, 1997, through March 31, 1998”; and (3) in subparagraph (C)— (A) by striking “1995, and” and inserting “1995,”; and (B) by inserting before the period at the end the following: “, and $42,000,000 for the period of October 1, 1997, through March 31, 1998”. (b) National Recreational Trails Program.—Section 1003 of the Intermodal Surface Transportation Efficiency Act of 1991

23 USC 104.

(105 Stat. 1918) (as amended by section 2(d)) is amended by adding at the end the following: “(e) National Recreational Trails Program.—Section 104(h) of title 23, United States Code, is amended by inserting ‘and 111 STAT. 2557$7,500,000 for the period of October 1, 1997, through March 31, 1998’ after ‘1997’.”. (c) Certain Allocated Programs.— (1) Highway use tax evasion.—Section 1040(f)(1) of the Intermodal Surface Transportation Efficiency Act of 1991 (23 U.S.C. 101 note; 105 Stat. 1992) is amended in the first sentence by inserting before the period at the end the following: “and $2,500,000 for the period of October 1, 1997, through March 31, 1998”. (2) Scenic byways program.—Section 1047(d) of the Intermodal Surface Transportation Efficiency Act of 1991 (23 U.S.C. 101 note; 105 Stat. 1998) is amended in the first sentence— (A) by striking “1994, and” and inserting “1994,”; and (B) by inserting before the period at the end the following: “, and $7,000,000 for the period of October 1, 1997, through March 31, 1998”. (d) Intelligent Transportation Systems.—Section 6058(b) of the Intermodal Surface Transportation Efficiency Act of 1991 (105 Stat. 2194) is amended—

23 USC 307 note.

 (1) by striking “1992 and” and inserting “1992,”; and (2) by inserting before the period at the end the following: “, and $47,000,000 for the period of October 1, 1997, through March 31, 1998”. (e) Surface Transportation Research.— (1) Operation lifesaver.— (A) In general.—There shall be available from the Highway Trust Fund (other than the Mass Transit Account) to carry out the operation lifesaver program under section 104(d)(1) of title 23, United States Code, $150,000 for the period of October 1, 1997, through March 31, 1998. (B) Contract authority.—Funds authorized under this paragraph shall be available for obligation in the same manner as if the funds were apportioned under chapter 1 of title 23, United States Code, and shall be subject to any limitation on obligations for Federal-aid highways and highway safety construction programs. (2) Dwight david eisenhower transportation fellowship program.— (A) In general.—There shall be available from the Highway Trust Fund (other than the Mass Transit Account) to carry out the Dwight David Eisenhower Transportation Fellowship Program under section 307(a)(1)(C)(ii) of title 23, United States Code, $1,000,000 for the period of October 1, 1997, through March 31, 1998. (B) Contract authority.—Funds authorized under this paragraph shall be available for obligation in the same manner as if the funds were apportioned under chapter 1 of title 23, United States Code, and shall be subject to any limitation on obligations for Federal-aid highways and highway safety construction programs. (3) National highway institute.—Section 321(f) of title 23, United States Code, is amended by adding at the end the following: “There shall be available from the Highway Trust Fund (other than the Mass Transit Account) to carry out this section $2,500,000 for the period of October 1, 1997, through March 31, 1998, and such funds shall be subject to any limitation on obligations for Federal-aid highways and highway safety construction programs.”. (4) Education and training program.—Section 326(c) of title 23, United States Code, is amended by adding at the end the following: “There shall be available from the Highway Trust Fund (other than the Mass Transit Account) to carry out this section $3,000,000 for the period of October 1, 1997, through 111 STAT. 2558March 31, 1998, and such funds shall be subject to any limitation on obligations for Federal-aid highways and highway safety construction programs.”. (f) Metropolitan Planning.— (1) Authorization of contract authority.— (A) In general.—There shall be available from the Highway Trust Fund (other than the Mass Transit Account) to carry out section 134 of title 23, United States Code, $78,500,000 for the period of October 1, 1997, through March 31, 1998. (B) Contract authority.—Funds authorized under this paragraph shall be available for obligation in the same manner as if the funds were apportioned under chapter 1 of title 23, United States Code, and shall be subject to any limitation on obligations for Federal-aid highways and highway safety construction programs. (2) Distribution of funds.—The Secretary shall distribute funds authorized under paragraph (1) to the States in accordance with section 104(f)(2) of title 23, United States Code. (g) Territories.—Section 1003 of the Intermodal Surface Transportation Efficiency Act of 1991 (105 Stat. 1918) (as amended by subsection (b)) is amended by adding at the end the following: “(f) Territories.— “(1) In general.—In lieu of the amounts deducted under section 104(b)(1) of title 23, United States Code, there shall be available from the Highway Trust Fund (other than the Mass Transit Account) for the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands $15,000,000 for the period of October 1, 1997, through March 31, 1998. “(2) Contract authority.—Funds authorized under this subsection shall be available for obligation in the same manner as if the funds were apportioned under chapter 1 of title 23, United States Code, and shall be subject to any limitation on obligations for Federal-aid highways and highway safety construction programs.”.
SEC. 6. EXTENSION OF HIGHWAY SAFETY PROGRAMS. (a) NHTSA Highway Safety Programs.—Section 2005(1) of the Intermodal Surface Transportation Efficiency Act of 1991 (105 Stat. 2079) is amended— (1) by striking “1996, and” and inserting “1996,”; and (2) by inserting before the period at the end the following: “, and $83,000,000 for the period of October 1, 1997, through March 31, 1998”; and (b) Alcohol-Impaired Driving Countermeasures.—Section 410 of title 23, United States Code, is amended— (1) in subsection (c)— (A) by striking “5” and inserting “6”; and 111 STAT. 2559 (B) in paragraph (3), by striking “and fifth” and inserting “fifth, and sixth”; (2) in subsection (d)(2)(B), by striking “two” and inserting “3”; and (3) in the first sentence of subsection (j)— (A) by striking “1997, and” and inserting “1997,”; and (B) by inserting before the period at the end the following “, and $12,500,000 for the period of October 1, 1997, through March 31, 1998”. (c) National Driver Register.—Section 30308(a) of title 49, United States Code, is amended— (1) by striking “1994, and” and inserting “1994,”; and (2) by inserting after “1997,” the following: “and $1,855,000 for the period of October 1, 1997, through March 31, 1998,”.
SEC. 7. EXTENSION OF MOTOR CARRIER SAFETY PROGRAM. Section 31104(a) of title 49, United States Code, is amended— (1) in paragraphs (1) through (5), by striking “not more” each place it appears and inserting “Not more”; and (2) by adding at the end the following: “(6) Not more than $45,000,000 for the period of October 1997, through March 31, 1998.”
SEC. 8.

49 USC 5309, 5337, 5338.

EXTENSION OF FEDERAL TRANSIT PROGRAMS. Title III of the Intermodal Surface Transportation Efficiency Act of 1991 (105 Stat. 2087-2140) is amended by adding at the end the following:
“SEC. 3049. EXTENSION OF FEDERAL TRANSIT PROGRAMS FOR THE PERIOD OF OCTOBER 1, 1997, THROUGH MARCH 31, 1998. “(a) Allocating Amounts.—Section 5309(mXD of title 49, United States Code, is amended by inserting ‘, and for the period of October 1, 1997, through March 31, 1998’ after ‘1997’. “(b) Apportionment of Appropriations for Fixed Guideway Modernization.—Section 5337 of title 49, United States Code, is amended— “(1) in subsection (a), by inserting ‘and for the period of October 1, 1997, through March 31, 1998,’ after ‘1997,’; and “(2) by adding at the end the following: “‘(e) Special Rule for October 1, 1997, Through March 31, 1998.—The Secretary shall determine the amount that each urbanized area is to be apportioned for fixed guideway modernization under this section on a pro rata basis to reflect the partial fiscal year 1998 funding made available by section 5338(b)(1)(F).’. “(c) Authorizations.—Section 5338 of title 49, United States Code, is amended— “(1) in subsection (a)— “(A) in paragraph (1), by adding at the end the following: “‘(F) $1,328,400,000 for the period of October 1, 1997, through March 31, 1998.’; and “(B) in paragraph (2), by adding at the end the following: “‘(F) $369,000,000 for the period of October 1, 1997, through March 31, 1998.’; “(2) in subsection (b)(1), by adding at the end the following: “‘(F) $1,131,600,000 for the period of October 1, 1997, through March 31, 1998.’; 111 STAT. 2560 “(3) in subsection (c), by inserting ‘and not more than $1,500,000 for the period of October 1, 1997, through March 31, 1998,’ after ‘1997,’; “(4) in subsection (e), by inserting ‘and not more than $3,000,000 is available from the Fund (except the Account) for the Secretary for the period of October 1, 1997, through March 31, 1998,’ after ‘1997,’; “(5) in subsection (h)(3), by inserting ‘and $3,000,000 is available for section 5317 for the period of October 1, 1997, through March 31, 1998’ after ‘1997’; “(6) in subsection (j)(5)— “(A) in subparagraph (B), by striking ‘and’ at the end; “(B) in subparagraph (C), by striking the period at the end and inserting ‘; and’; and “(C) by adding at the end the following: “‘(D) the lesser of $1,500,000 or an amount that the Secretary determines is necessary is available to carry out section 5318 for the period of October 1, 1997, through March 31, 1998.’; “(7) in subsection (k), by striking ‘or (e)’ and inserting ‘(e), or (m)’; and “(8) by adding at the end the following: “‘(m) Section 5316 for the Period of October 1, 1997, through March 31, 1998.—Not more than the following amounts may be appropriated to the Secretary from the Fund (except the Account) for the period of October 1, 1997, through March 31, 1998: “‘(1) $125,000 to carry out section 5316(a). “‘(2) $1,500,000 to carry out section 5316(b). “‘(3) $500,000 to carry out section 5316(c). “‘(4) $500,000 to carry out section 5316(d). “‘(5) $500,000 to carry out section 5316(e).’.”.
SEC. 9. EXTENSION OF TRUST FUNDS FUNDED BY HIGHWAY-RELATED TAXES. (a) Highway Trust Fund.—Section 9503 of the Internal Revenue

26 USC 9503.

Code of 1986 (relating to Highway Trust Fund) is amended— (1) in subsection (c)— (A) in paragraph (1)— (i) by striking “1997” and inserting “1998”; and (ii) by striking the last sentence and inserting the following new flush sentence: “In determining the authorizations under the Acts referred to in the preceding subparagraphs, such Acts shall be applied as in effect on the date of the enactment of this sentence.”; (B) in paragraph (4)(A), by striking “1997” and inserting “1998”; (C) in paragraph (5)(A), by striking “1997” and inserting “1998”; and (D) in paragraph (6)(E), by striking “1997” and inserting “1998”; and (2) in subsection (e)(3)— (A) by striking “1997” and inserting “1998”, and (B) by striking all that follows “the enactment of” and inserting “the last sentence of subsection (c)(1).”. 111 STAT. 2561 (b) Aquatic Resources Trust Fund.—Section 9504(c) of the Internal Revenue Code of 1986 (relating to expenditures from Boat

26 USC 9504.

Safety Account) is amended by striking “April 1, 1998” and inserting “October 1, 1998”. (c) National Recreational Trails Trust Fund.—Section 9511(c) of the Internal Revenue Code of 1986 (relating to expenditures

26 USC 9511.

from Trust Fund) is amended by striking “1997” and inserting “1998”. (d) Effective Date.—The amendments made by this section

26 USC 9503 note.

shall take effect on October 1, 1997.
Approved December 1, 1997.
LEGISLATIVE HISTORY—S. 1519: CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 10, considered and passed Senate.

Nov. 12, considered and passed House.

 Public Law 105–131: To designate the United States Post Office building located at 1919 West Bennett Street in Springfield, Missouri, as the “John N. Griesemer Post Office Building”. Public Law131 Public Law 105–131 111 Stat. 2562 1997-12-02 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2562 Public Law105–131 105th Congress
An Act To designate the United States Post Office building located at 1919 West Bennett Street in Springfield, Missouri, as the “John N. Griesemer Post Office Building”.

Dec. 2, 1997

[H.R. 1254]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. DESIGNATION. The United States Post Office building located at 1919 West Bennett Street in Springfield, Missouri, shall be known and designated as the “John N. Griesemer Post Office Building”.
SEC. 2. REFERENCES. Any reference in a law, map, regulation, document, paper, or other record of the United States to the United States Post Office building referred to in section 1 shall be deemed to be a reference to the “John N. Griesemer Post Office Building”.
Approved December 2, 1997.
LEGISLATIVE HISTORY—H.R. 1254 (S. 595): CONGRESSIONAL RECORD, Vol. 143 (1997):

Sept. 16, considered and passed House.

Nov. 13, considered and passed Senate.

 Public Law 105–132: To provide certain benefits of the Pick-Sloan Missouri River Basin program to the Lower Brule Sioux Tribe, and for other purposes. Public Law132 Public Law 105–132 111 Stat. 2563 1997-12-02 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2563 Public Law105–132 105th Congress
An Act To provide certain benefits of the Pick-Sloan Missouri River Basin program to the Lower Brule Sioux Tribe, and for other purposes.

Dec. 2, 1997

[S. 156]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Lower Brule Sioux Tribe Infrastructure Development Trust Fund Act”.
SECTION 1. SHORT TITLE. This Act may be cited as the “Lower Brule Sioux Tribe Infrastructure Development Trust Fund Act”.
SEC. 2. FINDINGS. Congress finds that— (1) under the Act of December 22, 1944, commonly known as the “Flood Control Act of 1944” (58 Stat. 887, chapter 665; 33 U.S.C. 701–1 et seq.) Congress approved the Pick-Sloan Missouri River Basin program— (A) to promote the general economic development of the United States; (B) to provide for irrigation above Sioux City, Iowa; (C) to protect urban and rural areas from devastating (D) floods of the Missouri River; and for other purposes; (2) the Fort Randall and Big Bend projects are major components of the Pick-Sloan Missouri River Basin program, and contribute to the national economy by generating a substantial amount of hydropower and impounding a substantial quantity of water; (3) the Fort Randall and Big Bend projects overlie the eastern boundary of the Lower Brule Indian Reservation, having inundated the fertile, wooded bottom lands of the Tribe along the Missouri River that constituted the most productive agricultural and pastoral lands of the Lower Brule Sioux Tribe and the homeland of the members of the Tribe; (4) Public Law 85–923 (72 Stat. 1773 et seq.) authorized the acquisition of 7,997 acres of Indian land on the Lower Brule Indian Reservation for the Fort Randall project and Public Law 87–734 (76 Stat. 698 et seq.) authorized the acquisition of 14,299 acres of Indian land on the Lower Brule Indian Reservation for the Big Bend project; 111 STAT. 2564 (5) Public Law 87–734 (76 Stat. 698 et seq.) provided for the mitigation of the effects of the Fort Randall and Big Bend projects on the Lower Brule Indian Reservation, by directing the Secretary of the Army to— (A) as necessary, by reason of the Big Bend project, protect, replace, relocate, or reconstruct— (i) any essential governmental and agency facilities on the reservation, including schools, hospitals, offices of the Public Health Service and the Bureau of Indian Affairs, service buildings, and employee quarters existing at the time that the projects were carried out; and (ii) roads, bridges, and incidental matters or facilities in connection with those facilities; (B) provide for a townsite adequate for 50 homes, including streets and utilities (including water, sewage, and electricity), taking into account the reasonable future growth of the townsite; and (C) provide for a community center containing space and facilities for community gatherings, tribal offices, tribal council chamber, offices of the Bureau of Indian Affairs, offices and quarters of the Public Health Service, and a combination gymnasium and auditorium; (6) the requirements under Public Law 87–734 (76 Stat. 698 et seq.) with respect to the mitigation of the effects of the Fort Randall and Big Bend projects on the Lower Brule Indian Reservation have not been fulfilled; (7) although the national economy has benefited from the Fort Randall and Big Bend projects, the economy on the Lower Brule Indian Reservation remains underdeveloped, in part as a consequence of the failure of the Federal Government to fulfill the obligations of the Federal Government under the laws referred to in paragraph (4); (8) the economic and social development and cultural preservation of the Lower Brule Sioux Tribe will be enhanced by increased tribal participation in the benefits of the Fort Randall and Big Bend components of the Pick-Sloan Missouri River Basin program; and (9) the Lower Brule Sioux Tribe is entitled to additional benefits of the Pick-Sloan Missouri River Basin program.
SEC. 3. DEFINITIONS. In this Act: (1) Fund.—The term “Fund” means the Lower Brule Sioux Tribe Infrastructure Development Trust Fund established under section 4(a). (2) Plan.—The term “plan” means the plan for socioeconomic recovery and cultural preservation prepared under section 5. (3) Program.—The term “Program” means the power program of the Pick-Sloan Missouri River Basin program, administered by the Western Area Power Administration. (4) Secretary.—The term “Secretary” means the Secretary of the Interior. (5) Tribe.—The term “Tribe” means the Lower Brule Sioux Tribe of Indians, a band of the Great Sioux Nation recognized by the United States of America.
111 STAT. 2565
SEC. 4. ESTABLISHMENT OF LOWER BRULE SIOUX TRIBE INFRASTRUCTURE DEVELOPMENT TRUST FUND. (a) Lower Brule Sioux Tribe Infrastructure Development Trust Fund.—There is established in the Treasury of the United States a fund to be known as the “Lower Brule Sioux Tribe Infrastructure Development Trust Fund”. (b) Funding.—Beginning with fiscal year 1998, and for each fiscal year thereafter, until such time as the aggregate of the amounts deposited in the Fund is equal to $39,300,000, the Secretary of the Treasury shall deposit into the Fund an amount equal to 25 percent of the receipts from the deposits to the Treasury of the United States for the preceding fiscal year from the Program. (c) Investments.—The Secretary of the Treasury shall invest the amounts deposited under subsection (b) only in interest-bearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United States. (d) Payment of Interest to Tribe.— (1) Establishment of account and transfer of interest.—The Secretary of the Treasury shall, in accordance with this subsection, transfer any interest that accrues on amounts deposited under subsection (b) into a separate account established by the Secretary of the Treasury in the Treasury of the United States. (2) Payments.— (A) In general.—Beginning with the fiscal year immediately following the fiscal year during which the aggregate of the amounts deposited in the Fund is equal to the amount specified in subsection (b), and for each fiscal year thereafter, all amounts transferred under paragraph (1) shall be available, without fiscal year limitation, to the Secretary of the Interior for use in accordance with subparagraph (C). (B) Withdrawal and transfer of funds.—For each fiscal year specified in subparagraph (A), the Secretary of the Treasury shall withdraw amounts from the account established under paragraph (1) and transfer such amounts to the Secretary of the Interior for use in accordance with subparagraph (C). The Secretary of the Treasury may only withdraw funds from the account for the purpose specified in this paragraph. (C) Payments to tribe.—The Secretary of the Interior shall use the amounts transferred under subparagraph (B) only for the purpose of making payments to the Tribe. (D) Use of payments by tribe.—The Tribe shall use the payments made under subparagraph (C) only for carrying out projects and programs pursuant to the plan prepared under section 5. (3) Prohibition on per capita payments.—No portion of any payment made under this subsection may be distributed to any member of the Tribe on a per capita basis. (e) Transfers and Withdrawals.—Except as provided in subsection (d)(1), the Secretary of the Treasury may not transfer or withdraw any amount deposited under subsection (b).
SEC. 5. PLAN FOR SOCIOECONOMIC RECOVERY AND CULTURAL PRESERVATION. (a) Plan.— 111 STAT. 2566 (1) In general.—The Tribe shall, not later than 2 years after the date of enactment of this Act, prepare a plan for the use of the payments made to the Tribe under section 4(d)(2). In developing the plan, the Tribe shall consult with the Secretary of the Interior and the Secretary of Health and Human Services. (2) Requirements for plan components.—The plan shall, with respect to each component of the plan— (A) identify the costs and benefits of that component; and (B) provide plans for that component. (b) Content of Plan.—The plan shall include the following programs and components: (1) Educational facility.—The plan shall provide for an educational facility to be located on the Lower Brule Indian Reservation. (2) Comprehensive inpatient and outpatient health care facility.—The plan shall provide for a comprehensive inpatient and outpatient health care facility to provide essential services that the Secretary of Health and Human Services, in consultation with the individuals and entities referred to in subsection (a)(1), determines to be— (A) needed; and (B) unavailable through facilities of the Indian Health Service on the Lower Brule Indian Reservation in existence at the time of the determination. (3) Water system.—The plan shall provide for the construction, operation, and maintenance of a municipal, rural, and industrial water system for the Lower Brule Indian Reservation. (4) Recreational facilities.—The plan shall provide for recreational facilities suitable for high-density recreation at Lake Sharpe at Big Bend Dam and at other locations on the Lower Brule Indian Reservation in South Dakota. (5) Other projects and programs.—The plan shall provide for such other projects and programs for the educational, social welfare, economic development, and cultural preservation of the Tribe as the Tribe considers to be appropriate.
SEC. 6. AUTHORIZATION OF APPROPRIATIONS. There are authorized to be appropriated such funds as may be necessary to carry out this Act, including such funds as may be necessary to cover the administrative expenses of the Fund.
SEC. 7. EFFECT OF PAYMENTS TO TRIBE. (a) In General.—No payment made to the Tribe pursuant to this Act shall result in the reduction or denial of any service or program to which, pursuant to Federal law— (1) the Tribe is otherwise entitled because of the status of the Tribe as a federally recognized Indian tribe; or (2) any individual who is a member of the Tribe is entitled because of the status of the individual as a member of the Tribe. (b) Exemptions; Statutory Construction.— (1) Power rates.—No payment made pursuant to this Act shall affect Pick-Sloan Missouri River Basin power rates. (2) Statutory construction.—Nothing in this Act may be construed as diminishing or affecting— 111 STAT. 2567 (A) any right of the Tribe that is not otherwise addressed in this Act; or (B) any treaty obligation of the United States.
Approved December 2, 1997.
LEGISLATIVE HISTORY—S. 156: SENATE REPORTS: No. 105–146 (Comm. on Indian Affairs). CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 9, considered and passed Senate.

Nov. 13, considered and passed House.

 Public Law 105–133: To provide for the establishment of not less than 2,500 Boys and Girls Clubs of America facilities by the year 2000. Public Law133 Public Law 105–133 111 Stat. 2568 1997-12-02 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2568 Public Law105–133 105th Congress
An Act To provide for the establishment of not less than 2,500 Boys and Girls Clubs of America facilities by the year 2000.

Dec. 2, 1997

[S. 476]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. 2,500 BOYS AND GIRLS CLUBS BEFORE 2000. (a) In General.—Section 401(a) of the Economic Espionage Act of 1996 (42 U.S.C. 13751 note) is amended by striking paragraph (2) and inserting the following: “(2) Purpose.—The purpose of this section is to provide adequate resources in the form of seed money for the Boys and Girls Clubs of America to establish 1,000 additional local clubs where needed, with particular emphasis placed on establishing clubs in public housing projects and distressed areas, and to ensure that there are a total of not less than 2,500 Boys and Girls Clubs of America facilities in operation not later than December 31, 1999.”. (b) Accelerated Grants.—Section 401 of the Economic Espionage Act of 1996 (42 U.S.C. 13751 note) is amended— (1) in subsection (b)(2), by striking “or rural” and all that follows through the end and inserting the following: “rural area, or Indian reservation with a population of high risk youth as defined in section 517 of the Public Health Service Act (42 U.S.C. 290bb-23) of sufficient size to warrant the establishment of a Boys and Girls Club.”; and (2) by striking subsection (c) and inserting the following: “(c) Establishment.— “(1) In general.—For each of the fiscal years 1997, 1998, 1999, 2000, and 2001, the Director of the Bureau of Justice Assistance of the Department of Justice shall make a grant to the Boys and Girls Clubs of America for the purpose of establishing and extending Boys and Girls Clubs facilities where needed, with particular emphasis placed on establishing clubs in and extending services to public housing projects and distressed areas. “(2) Applications.—The Attorney General shall accept an application for a grant under this subsection if submitted by the Boys and Girls Clubs of America, and approve or deny the grant not later than 90 days after the date on which the application is submitted, if the application— “(A) includes a long-term strategy to establish 1,000 additional Boys and Girls Clubs and detailed summary of those areas in which new facilities will be established, 111 STAT. 2569or in which existing facilities will be expanded to serve additional youths, during the next fiscal year; “(B) includes a plan to ensure that there are a total of not less than 2,500 Boys and Girls Clubs of America facilities in operation before January 1, 2000; “(C) certifies that there will be appropriate coordination with those communities where clubs will be located; and “(D) explains the manner in which new facilities will operate without additional, direct Federal financial assistance to the Boys and Girls Clubs once assistance under this subsection is discontinued.”. (c) Role Model Grants.—Section 401 of the Economic Espionage Act of 1996 (42 U.S.C. 13751 note) is amended by adding at the end the following: “(f) Role Model Grants.—Of amounts made available under subsection (e) for any fiscal year— “(1) not more than 5 percent may be used to provide a grant to the Boys and Girls Clubs of America for administrative, travel, and other costs associated with a national role-model speaking tour program; and “(2) no amount may be used to compensate speakers other than to reimburse speakers for reasonable travel and accommodation costs associated with the program described in paragraph (1).”.
Approved December 2, 1997.
LEGISLATIVE HISTORY—S. 476 (H.R. 1753): HOUSE REPORTS: No. 105–368 accompanying H.R. 1753 (Comm. on the Judiciary). CONGRESSIONAL RECORD, Vol. 143 (1997):

May 15, considered and passed Senate.

Nov. 13, considered and passed House, amended, in lieu of H.R. 1753. Senate concurred in House amendment.

 Public Law 105–134: To reform the statutes relating to Amtrak, to authorize appropriations for Amtrak, and for other purposes. Public Law134 Public Law 105–134 111 Stat. 2570 1997-12-02 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105public 111 STAT. 2570 Public Law105–134 105th Congress
An Act To reform the statutes relating to Amtrak, to authorize appropriations for Amtrak, and for other purposes.

Dec. 2, 1997

[S. 738]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Amtrak Reform and Accountability Act of 1997.

Intergovernmental relations.

49 USC 20101 note.
SECTION 1. SHORT TITLE; AMENDMENT OF TITLE 49; TABLE OF SECTIONS. (a) Short Title.—This Act may be cited as the “Amtrak Reform and Accountability Act of 1997”. (b) Amendment of Title 49, United States Code.—Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or a repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of title 49, United States Code. (c) Table of Sections.—The table of sections for this Act is as follows: Sec. 1. Sec. 2. TITLE I— Subtitle A— Sec. 101. Sec. 102. Sec. 103. Sec. 104. Sec. 105. Sec. 106. Sec. 107. Sec. 108. Sec. 109. Sec. 110. Subtitle B— Sec. 121. Subtitle C— Sec. 141. Sec. 142. Subtitle D— Sec. 161. Sec. 162. TITLE II— Sec. 201. Sec. 202. Sec. 203. 111 STAT. 2571 Sec. 204. Sec. 205. Sec. 206. Sec. 207. Sec. 208. Sec. 209. TITLE III— Sec. 301. TITLE IV— Sec. 401. Sec. 402. Sec. 403. Sec. 404. Sec. 405. Sec. 406. Sec. 407. Sec. 408. Sec. 409. Sec. 410. Sec. 411. Sec. 412. Sec. 413. Sec. 414. Sec. 415.
SEC. 2.

49 USC 24101 note.

 FINDINGS. The Congress finds that— (1) intercity rail passenger service is an essential component of a national intermodal passenger transportation system; (2) Amtrak is facing a financial crisis, with growing and substantial debt obligations severely limiting its ability to cover operating costs and jeopardizing its long-term viability; (3) immediate action is required to improve Amtrak’s financial condition if Amtrak is to survive; (4) all of Amtrak’s stakeholders, including labor, management, and the Federal Government, must participate in efforts to reduce Amtrak’s costs and increase its revenues; (5) additional flexibility is needed to allow Amtrak to operate in a businesslike manner in order to manage costs and maximize revenues; (6) Amtrak should ensure that new management flexibility produces cost savings without compromising safety; (7) Amtrak’s management should be held accountable to ensure that all investment by the Federal Government and State governments is used effectively to improve the quality of service and the long-term financial health of Amtrak; (8) Amtrak and its employees should proceed quickly with proposals to modify collective bargaining agreements to make more efficient use of manpower and to realize cost savings which are necessary to reduce Federal financial assistance; (9) Amtrak and intercity bus service providers should work cooperatively and develop coordinated intermodal relationships promoting seamless transportation services which enhance travel options and increase operating efficiencies; (10) Amtrak’s Strategic Business Plan calls for the establishment of a dedicated source of capital funding for Amtrak in order to ensure that Amtrak will be able to fulfill the goals of maintaining— (A) a national passenger rail system; and (B) that system without Federal operating assistance; and 111 STAT. 2572 (11) Federal financial assistance to cover operating losses incurred by Amtrak should be eliminated by the year 2002.
<num value="I">TITLE I—</num><heading>REFORMS</heading> <subtitle><num value="A">Subtitle A—</num><heading>Operational Reforms</heading> <section><num value="101">SEC. 101. </num><heading>BASIC SYSTEM.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Operation of Basic System.—</inline></heading><paragraph class="inline"><num value="1">(1) </num><content>Section 24701 is amended to read as follows: <quotedContent><section><num value="24701">“§ 24701. </num><heading>National rail passenger transportation system</heading> <content>“Amtrak shall operate a national rail passenger transportation system which ties together existing and emergent regional rail passenger service and other intermodal passenger service.”.</content></section></quotedContent></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The item relating to section 24701 in the table of sections of chapter 247 is amended to read as follows: <quotedContent><toc><referenceItem role="section"><designator>“24701. </designator><label>National rail passenger transportation system.”.</label></referenceItem></toc></quotedContent></content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Improving Rail Passenger Transportation.—</inline></heading><content>Section 24702 and the item relating thereto in the table of sections for chapter 247 are repealed.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Discontinuance</inline>.—</heading><chapeau>Section 24706 is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking “<quotedText>90 days</quotedText>” and inserting “<quotedText>180 days</quotedText>” in subsection (a)(1);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking “<quotedText>24707(a) or (b) of this title,</quotedText>” in subsection (a)(1) and inserting “<quotedText>or discontinuing service over a route,</quotedText>”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by inserting “<quotedText>or assume</quotedText>” after “agree to share” in subsection (a)(1);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>by striking “<quotedText>section 24707(a) or (b) of this title</quotedText>” in subsection (a)(2) and inserting “<quotedText>paragraph (1)</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>by striking “<quotedText>section 24707(a) or (b) of this title</quotedText>” in subsection (b)(1) and inserting “<quotedText>subsection (a)(1)</quotedText>”.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Cost and Performance Review</inline>.—</heading><content>Section 24707 and the item relating thereto in the table of sections for chapter 247 are repealed.</content></subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><heading><inline class="smallCaps">Special Commuter Transportation</inline>.—</heading><content>Section 24708 and the item relating thereto in the table of sections for chapter 247 are repealed.</content></subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>Section 24312(a)(1) is amended by striking “<quotedText>, 24701(a),</quotedText>”.</content></subsection></section> <section><num value="102">SEC. 102. </num><heading>MAIL, EXPRESS, AND AUTO-FERRY TRANSPORTATION.</heading> <chapeau>Section 24306 is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking the last sentence of subsection (a); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking subsection (b) and inserting the following: <quotedContent><subsection class="indent0 fontsize10"><num value="b">“(b) </num><heading><inline class="smallCaps">Authority of Others To Provide Auto-Ferry Transportation</inline>.—</heading><content>State and local laws and regulations that impair the provision of auto-ferry transportation do not apply to Amtrak or a rail carrier providing auto-ferry transportation. A rail carrier may not refuse to participate with Amtrak in providing auto-ferry transportation because a State or local law or regulation makes the transportation unlawful.”.</content></subsection></quotedContent></content></paragraph></section> <section><num value="103">SEC. 103. </num><heading>ROUTE AND SERVICE CRITERIA.</heading> <content>Section 24703 and the item relating thereto in the table of sections for chapter 247 are repealed.</content></section> <page identifier="/us/stat/111/2573">111 STAT. 2573</page> <section><num value="104">SEC. 104. </num><heading>ADDITIONAL QUALIFYING ROUTES.</heading> <content>Section 24705 and the item relating thereto in the table of sections for chapter 247 are repealed.</content></section> <section><num value="105">SEC. 105. </num><heading>TRANSPORTATION REQUESTED BY STATES, AUTHORITIES, AND OTHER PERSONS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Repeal</inline>.—</heading><content>Section 24704 and the item relating thereto in the table of sections of chapter 247 are repealed.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">State, Regional, and Local Cooperation</inline>.—</heading><content>Section 24101(c)(2) is amended by inserting “<quotedText>, separately or in combination,</quotedText>” after “and the private sector”.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>Section 24312(a)(1) is amended by striking “<quotedText>or 24704(b)(2)</quotedText>”.</content></subsection></section> <section><num value="106">SEC. 106. </num><heading>AMTRAK COMMUTER.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Repeal of Chapter 245</inline>.—</heading><content>Chapter 245 and the item relating <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s24501">49 USC 24501</ref> <i>et seq.</i></p></sidenote>thereto in the table of chapters for subtitle V of such title, are repealed.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Conforming Amendment.</inline>—</heading><content>Section 24301(f) is amended to read as follows: <quotedContent><subsection class="indent0 fontsize10"><num value="f">“(f) </num><heading><inline class="smallCaps">Tax Exemption for Certain Commuter Authorities</inline>.—</heading><content>A commuter authority that was eligible to make a contract with Amtrak Commuter to provide commuter rail passenger transportation but which decided to provide its own rail passenger transportation beginning January 1, 1983, is exempt, effective October 1, 1981, from paying a tax or fee to the same extent Amtrak is exempt.”.</content></subsection></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Trackage Rights Not Affected</inline>.—</heading><content>The repeal of chapter <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s24501">49 USC 24501</ref> note.</p></sidenote>245 of title 49, United States Code, by subsection (a) of this section is without prejudice to the retention of trackage rights over property owned or leased by commuter authorities.</content></subsection></section> <section><num value="107">SEC. 107. </num><heading>THROUGH SERVICE IN CONJUNCTION WITH INTERCITY BUS OPERATIONS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">In General.</inline>—</heading><content>Section 24305(a) is amended by adding at the end the following new paragraph: <quotedContent><paragraph class="indent1 fontsize10"><num value="3">“(3)</num><subparagraph class="inline"><num value="A">(A) </num><chapeau>Except as provided in subsection (d)(2), Amtrak may enter into a contract with a motor carrier of passengers for the intercity transportation of passengers by motor carrier over regular routes only—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>if the motor carrier is not a public recipient of governmental assistance, as such term is defined in section 13902(b)(8)(A) of this title, other than a recipient of funds under section 5311 of this title;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>for passengers who have had prior movement by rail or will have subsequent movement by rail; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><content>if the buses, when used in the provision of such transportation, are used exclusively for the transportation of passengers described in clause (ii).</content></clause></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">“(B) </num><content>Subparagraph (A) shall not apply to transportation funded predominantly by a State or local government, or to ticket selling agreements.”.</content></subparagraph></paragraph></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Policy Statement</inline>.—</heading><content>Section 24305(d) is amended by adding at the end the following new paragraph: <quotedContent><paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>Congress encourages Amtrak and motor common carriers of passengers to use the authority conferred in sections 11322 and 14302 of this title for the purpose of providing improved service to the public and economy of operation.”.</content></paragraph></quotedContent></content></subsection></section> <page identifier="/us/stat/111/2574">111 STAT. 2574</page> <section><num value="108">SEC. 108. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s24305">49 USC 24305</ref> note.</p></sidenote><heading>RAIL AND MOTOR CARRIER PASSENGER SERVICE.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">In General.</inline>—</heading><chapeau>Notwithstanding any other provision of law (other than section 24305(a)(3) of title 49, United States Code), Amtrak and motor carriers of passengers are authorized—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>to combine or package their respective services and facilities to the public as a means of increasing revenues; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>to coordinate schedules, routes, rates, reservations, and ticketing to provide for enhanced intermodal surface transportation.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Review</inline>.—</heading><content>The authority granted by subsection (a) is subject to review by the Surface Transportation Board and may be modified or revoked by the Board if modification or revocation is in the public interest.</content></subsection></section> <section><num value="109">SEC. 109. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s24301">49 USC 24301</ref> note.</p></sidenote><heading>PASSENGER CHOICE.</heading> <content>Federal employees are authorized to travel on Amtrak for official business where total travel cost from office to office is competitive on a total trip or time basis.</content></section> <section><num value="110">SEC. 110. </num><heading>APPLICATION OF CERTAIN LAWS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Application of FOIA</inline>.—</heading><content>Section 24301(e) is amended by adding at the end thereof the following: “Section 552 of title 5, United States Code, applies to Amtrak for any fiscal year in which Amtrak receives a Federal subsidy.”.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s24301">49 USC 24301</ref> note.</p></sidenote><heading><inline class="smallCaps">Application of Federal Property and Administrative Services Act</inline>.—</heading><content>Section 303B(m) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253b(m)) applies to a proposal in the possession or control of Amtrak.</content></subsection></section> </subtitle> <subtitle> <num value="B">Subtitle B—</num><heading>Procurement</heading> <section><num value="121">SEC. 121. </num><heading>CONTRACTING OUT.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Repeal of Ban on Contracting Out</inline>.—</heading><chapeau>Section 24312 is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking subsection (b);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking “(1)” in subsection (a); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by striking “(2) Wage” in subsection (a) and inserting “<quotedText>(b) <inline class="smallCaps">Wage Rates</inline>.—Wage</quotedText>”.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s24312">49 USC 24312</ref> note.</p></sidenote><heading><inline class="smallCaps">Amendment of Existing Collective Bargaining Agreement.</inline>—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Contracting out</inline>.—</heading><content>Any collective bargaining agreement entered into between Amtrak and an organization representing Amtrak employees before the date of enactment of this Act is deemed amended to include the language of section 24312(b) of title 49, United States Code, as that section existed on the day before the effective date of the amendments made by subsection (a).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Enforceability of amendment</inline>.—</heading><content>The amendment to any such collective bargaining agreement deemed to be made by paragraph (1) of this subsection is binding on all parties to the agreement and has the same effect as if arrived at by agreement of the parties under the Railway Labor Act.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s24312">49 USC 24312</ref> note.</p></sidenote><heading><inline class="smallCaps">Contracting-out Issues To Be Included in Negotiations</inline>.—</heading><chapeau>Proposals on the subject matter of contracting out work, other than work related to food and beverage service, which results in the layoff of an Amtrak employee—</chapeau> <page identifier="/us/stat/111/2575">111 STAT. 2575</page> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>shall be included in negotiations under section 6 of the Railway Labor Act (45 U.S.C. 156) between Amtrak and an organization representing Amtrak employees, which shall be commenced by—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the date on which labor agreements under negotiation on the date of enactment of this Act may be reopened; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>November 1, 1999,</content></subparagraph> <continuation class="indent0 fontsize10">whichever is earlier;</continuation></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>may, at the mutual election of Amtrak and an organization representing Amtrak employees, be included in any negotiation in progress under section 6 of the Railway Labor Act (45 U.S.C. 156) on the date of enactment of this Act; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>may not be included in any negotiation in progress under section 6 of the Railway Labor Act (45 U.S.C. 156) on the date of enactment of this Act, unless both Amtrak and the organization representing Amtrak employees agree to include it in the negotiation.</content></paragraph> <continuation class="indent0 fontsize10">No contract between Amtrak and an organization representing Amtrak employees, that is under negotiation on the date of enactment of this Act, may contain a moratorium that extends more than 5 years from the date of expiration of the last moratorium.</continuation></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">No Inference</inline>.—</heading><content>The amendment made by subsection (a)(1) <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s24312">49 USC 24312</ref> note.</p></sidenote>is without prejudice to the power of Amtrak to contract out the provision of food and beverage services on board Amtrak trains or to contract out work not resulting in the layoff of Amtrak employees.</content></subsection></section> </subtitle> <subtitle> <num value="C">Subtitle C—</num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s24706">49 USC 24706</ref> note.</p></sidenote><heading>Employee Protection Reforms </heading> <section><num value="141">SEC. 141. </num><heading>RAILWAY LABOR ACT PROCEDURES.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Notices.</inline>—</heading><content>Notwithstanding any arrangement in effect before the date of the enactment of this Act, notices under section 6 of the Railway Labor Act (45 U.S.C. 156) with respect to all issues relating to employee protective arrangements and severance benefits which are applicable to employees of Amtrak, including all provisions of Appendix C-2 to the National Railroad Passenger Corporation Agreement, signed July 5, 1973, shall be deemed served and effective on the date which is 45 days after the date of the enactment of this Act. Amtrak, and each affected labor organization representing Amtrak employees, shall promptly supply specific information and proposals with respect to each such notice.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">National Mediation Board Efforts</inline>.—</heading><content>Except as provided in subsection (c), the National Mediation Board shall complete all efforts, with respect to the dispute described in subsection (a), under section 5 of the Railway Labor Act (45 U.S.C. 155) not later than 120 days after the date of the enactment of this Act.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Railway Labor Act Arbitration</inline>.—</heading><content>The parties to the dispute described in subsection (a) may agree to submit the dispute to arbitration under section 7 of the Railway Labor Act (45 U.S.C. 157), and any award resulting therefrom shall be retroactive to the date which is 120 days after the date of the enactment of this Act.</content></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Dispute Resolution</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>With respect to the dispute described in subsection (a) which—</chapeau> <page identifier="/us/stat/111/2576">111 STAT. 2576</page> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>is unresolved as of the date which is 120 days after the date of the enactment of this Act; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>is not submitted to arbitration as described in subsection (c),</content></subparagraph> <continuation class="indent0 fontsize10">Amtrak shall, and the labor organization parties to such dispute shall, within 127 days after the date of the enactment of this Act, each select an individual from the entire roster of arbitrators maintained by the National Mediation Board. Within 134 days after the date of the enactment of this Act, the individuals selected under the preceding sentence shall jointly select an individual from such roster to make recommendations with respect to such dispute under this subsection. If the National Mediation Board is not informed of the selection under the preceding sentence 134 days after the date of enactment of this Act, the Board shall immediately select such individual.</continuation></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>No individual shall be selected under paragraph (1) who is pecuniarily or otherwise interested in any organization of employees or any railroad.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><content>The compensation of individuals selected under paragraph <sidenote><p class="indent0 firstIndent0 fontsize8">Applicability.</p></sidenote>(1) shall be fixed by the National Mediation Board. The second paragraph of section 10 of the Railway Labor Act shall apply to the expenses of such individuals as if such individuals were members of a board created under such section 10.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="4">(4) </num><content>If the parties to a dispute described in subsection (a) fail to reach agreement within 150 days after the date of the enactment of this Act, the individual selected under paragraph (1) with respect to such dispute shall make recommendations to the parties proposing contract terms to resolve the dispute.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="5">(5) </num><content>If the parties to a dispute described in subsection (a) fail to reach agreement, no change shall be made by either of the parties in the conditions out of which the dispute arose for 30 days after recommendations are made under paragraph (4).</content></paragraph> <paragraph class="indent0 fontsize10"><num value="6">(6) </num><content>Section 10 of the Railway Labor Act (45 U.S.C. 160) shall not apply to a dispute described in subsection (a).</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><heading><inline class="smallCaps">No Precedent for Freight.</inline>—</heading><content>Nothing in this Act, or in any amendment made by this Act, shall affect the level of protection provided to freight railroad employees and mass transportation employees as it existed on the day before the date of enactment of this Act.</content></subsection></section> <section><num value="142">SEC. 142. </num><heading>SERVICE DISCONTINUANCE.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Repeal</inline>.—</heading><content>Section 24706(c) is repealed.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Existing Contracts</inline>.—</heading><content>Any provision of a contract entered into before the date of the enactment of this Act between Amtrak and a labor organization representing Amtrak employees relating to employee protective arrangements and severance benefits applicable to employees of Amtrak is extinguished, including all provisions of Appendix C—2 to the National Railroad Passenger Corporation Agreement, signed July 5, 1973.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Special Effective Date</inline>.—</heading><content>Subsections (a) and (b) of this section shall take effect 180 days after the date of the enactment of this Act.</content></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Nonapplication of Bankruptcy Law Provision</inline>.—</heading><content>Section 1172(c) of title 11, United States Code, shall not apply to Amtrak and its employees.</content></subsection></section> </subtitle> <page identifier="/us/stat/111/2577">111 STAT. 2577</page> <subtitle> <num value="D">Subtitle D—</num><heading>Use of Railroad Facilities</heading> <section><num value="161">SEC. 161. </num><heading>LIABILITY LIMITATION.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>Chapter 281 is amended by adding at the end the following new section: <quotedContent> <section><num value="28103">“§ 28103. </num><heading>Limitations on rail passenger transportation liability</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><heading><inline class="smallCaps">Limitations.</inline>—</heading><paragraph class="inline"><num value="1">(1) </num><content>Notwithstanding any other statutory or common law or public policy, or the nature of the conduct giving rise to damages or liability, in a claim for personal injury to a passenger, death of a passenger, or damage to property of a passenger arising from or in connection with the provision of rail passenger transportation, or from or in connection with any rail passenger transportation operations over or rail passenger transportation use of right-of-way or facilities owned, leased, or maintained by any high-speed railroad authority or operator, any commuter authority or operator, any rail carrier, or any State, punitive damages, to the extent permitted by applicable State law, may be awarded in connection with any such claim only if the plaintiff establishes by clear and convincing evidence that the harm that is the subject of the action was the result of conduct carried out by the defendant with a conscious, flagrant indifference to the rights or safety of others. If, in any case wherein death was caused, the law of the place where the act or omission complained of occurred provides, or has been construed to provide, for damages only punitive in nature, this paragraph shall not apply.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">“(2) </num><content>The aggregate allowable awards to all rail passengers, against all defendants, for all claims, including claims for punitive damages, arising from a single accident or incident, shall not exceed $200,000,000.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><heading><inline class="smallCaps">Contractual Obligations</inline>.—</heading><content>A provider of rail passenger transportation may enter into contracts that allocate financial responsibility for claims.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><heading><inline class="smallCaps">Mandatory Coverage.</inline>—</heading><content>Amtrak shall maintain a total minimum liability coverage for claims through insurance and self-insurance of at least $200,000,000 per accident or incident.</content></subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><content>Effect on Other Laws.—This section shall not affect the damages that may be recovered under the Act of April 27, 1908 (45 U.S.C. 51 et seq.; popularly known as the ‘Federal Employers’ Liability Act’) or under any workers compensation Act.</content></subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><heading><inline class="smallCaps">Definition</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><chapeau>the term ‘claim’ means a claim made—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><content>against Amtrak, any high-speed railroad authority or operator, any commuter authority or operator, any rail carrier, or any State; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>against an officer, employee, affiliate engaged in railroad operations, or agent, of Amtrak, any high-speed railroad authority or operator, any commuter authority or operator, any rail carrier, or any State;</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>the term ‘punitive damages’ means damages awarded against any person or entity to punish or deter such person or entity, or others, from engaging in similar behavior in the future; and</content></paragraph> <page identifier="/us/stat/111/2578">111 STAT. 2578</page> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>the term ‘rail carrier’ includes a person providing excursion, scenic, or museum train service, and an owner or operator of a privately owned rail passenger car.”.</content></paragraph></subsection></section></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Conforming Amendment.—</inline></heading><content>The table of sections for chapter 281 is amended by adding at the end the following new item: <quotedContent><toc><referenceItem role="section"><designator>“28103. </designator><label>Limitations on rail passenger transportation liability.”.</label></referenceItem></toc></quotedContent></content></subsection></section> <section><num value="162">SEC. 162. </num><heading>RETENTION OF FACILITIES.</heading> <content>Section 24309(b) is amended by inserting “<quotedText>or on January 1, 1997,</quotedText>” after “1979,”.</content></section> </subtitle> <num value="I">TITLE II—</num><heading>FISCAL ACCOUNTABILITY</heading> <section><num value="201">SEC. 201. </num><heading>AMTRAK FINANCIAL GOALS.</heading> <content>Section 24101(d) is amended by adding at the end thereof the following: “Amtrak shall prepare a financial plan to operate within the funding levels authorized by section 24104 of this chapter, including budgetary goals for fiscal years 1998 through 2002. Commencing no later than the fiscal year following the fifth anniversary of the Amtrak Reform and Accountability Act of 1997, Amtrak shall operate without Federal operating grant funds appropriated for its benefit.”.</content></section> <section><num value="202">SEC. 202. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s24101">49 USC 24101</ref> note.</p> <p class="indent0 firstIndent0 fontsize8">Contracts.</p> </sidenote><heading>INDEPENDENT ASSESSMENT.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Initiation</inline>.—</heading><content>Not later than 15 days after the date of enactment of this Act, the Secretary of Transportation shall contract with an entity independent of Amtrak and not in any contractual relationship with Amtrak, and independent of the Department of Transportation, to conduct a complete independent assessment of the financial requirements of Amtrak through fiscal year 2002. The entity shall have demonstrated knowledge about railroad industry accounting requirements, including the uniqueness of the industry and of Surface Transportation Board accounting requirements. The Department of Transportation, Office of Inspector General, shall approve the entity’s statement of work and the award and shall oversee the contract. In carrying out its responsibilities under the preceding sentence, the Inspector General’s Office shall perform such overview and validation or verification of data as may be necessary to assure that the assessment conducted under this subsection meets the requirements of this section.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Assessment Criteria.—</inline></heading><content>The Secretary and Amtrak shall provide to the independent entity estimates of the financial requirements of Amtrak for the period described in subsection (a), using as a base the fiscal year 1997 appropriation levels established by the Congress. The independent assessment shall be based on an objective analysis of Amtrak’s funding needs.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Certain Factors To Be Taken into Account</inline>.—</heading><chapeau>The independent assessment shall take into account all relevant factors, including Amtrak’s—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>cost allocation process and procedures;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>expenses related to intercity rail passenger service, commuter service, and any other service Amtrak provides;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Strategic Business Plan, including Amtrak’s projected expenses, capital needs, ridership, and revenue forecasts; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>assets and liabilities.</content></paragraph> <continuation class="indent0 fontsize10">For purposes of paragraph (3), in the capital needs part of its Strategic Business Plan Amtrak shall distinguish between that <page identifier="/us/stat/111/2579">111 STAT. 2579</page>portion of the capital required for the Northeast Corridor and that required outside the Northeast Corridor, and shall include rolling stock requirements, including capital leases, “state of good repair” requirements, and infrastructure improvements.</continuation></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Bidding Practices</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Study</inline>.—</heading><content>The independent assessment also shall determine whether, and to what extent, Amtrak has performed each year during the period from 1992 through 1996 services under contract at amounts less than the cost to Amtrak of performing such services with respect to any activity other than the provision of intercity rail passenger transportation, or mail or express transportation. For purposes of this clause, the cost to Amtrak of performing services shall be determined using generally accepted accounting principles for contracting. If identified, such contracts shall be detailed in the report of the independent assessment, as well as the methodology for preparation of bids to reflect Amtrak’s actual cost of performance.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Reform</inline>.—</heading><content>If the independent assessment performed under this subparagraph reveals that Amtrak has performed services under contract for an amount less than the cost to Amtrak of performing such services, with respect to any activity other than the provision of intercity rail passenger transportation, or mail or express transportation, then Amtrak shall revise its methodology for preparation of bids to reflect its cost of performance.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><heading><inline class="smallCaps">Deadline</inline>.—</heading><content>The independent assessment shall be completed not later than 180 days after the contract is awarded, and shall be submitted to the Council established under section 203, the Secretary of Transportation, the Committee on Commerce, Science, and Transportation of the United States Senate, and the Committee on Transportation and Infrastructure of the United States House of Representatives.</content></subsection></section> <section><num value="203">SEC. 203. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s24101">49 USC 24101</ref> note.</p></sidenote><heading>AMTRAK REFORM COUNCIL.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Establishment.</inline>—</heading><content>There is established an independent commission to be known as the Amtrak Reform Council.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Membership.</inline>—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The Council shall consist of 11 members, as follows:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>The Secretary of Transportation.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><chapeau>Two individuals appointed by the President, of <sidenote><p class="indent0 firstIndent0 fontsize8">President.</p></sidenote>which—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>one shall be a representative of a rail labor organization; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>one shall be a representative of rail management.</content></clause></subparagraph> <subclause class="indent4 fontsize10"><num value="C">(C) </num><content>Three individuals appointed by the Majority Leader of the United States Senate.</content></subclause> <subclause class="indent4 fontsize10"><num value="D">(D) </num><content>One individual appointed by the Minority Leader of the United States Senate.</content></subclause> <subclause class="indent4 fontsize10"><num value="E">(E) </num><content>Three individuals appointed by the Speaker of the United States House of Representatives.</content></subclause> <subclause class="indent4 fontsize10"><num value="F">(F) </num><content>One individual appointed by the Minority Leader of the United States House of Representatives.</content></subclause></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Appointment criteria</inline>.—</heading> <page identifier="/us/stat/111/2580">111 STAT. 2580</page> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><heading><inline class="smallCaps">Time for initial appointments.—</inline></heading><content>Appointments under paragraph (1) shall be made within 30 days after the date of enactment of this Act.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><heading><inline class="smallCaps">Expertise</inline>.—</heading><chapeau>Individuals appointed under subparagraphs (C) through (F) of paragraph (1)—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>may not be employees of the United States;</content></clause> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>may not be board members or employees of Amtrak;</content></clause> <clause class="indent3 fontsize10"><num value="iii">(iii) </num><content>may not be representatives of rail labor organizations or rail management; and</content></clause> <clause class="indent3 fontsize10"><num value="iv">(iv) </num><content>shall have technical qualifications, professional standing, and demonstrated expertise in the field of corporate management, finance, rail or other transportation operations, labor, economics, or the law, or other areas of expertise relevant to the Council.</content></clause></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Term</inline>.—</heading><content>Members shall serve for terms of 5 years. If a vacancy occurs other than by the expiration of a term, the individual appointed to fill the vacancy shall be appointed in the same manner as, and shall serve only for the unexpired portion of the term for which, that individual’s predecessor was appointed.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><heading><inline class="smallCaps">Chairman</inline>.—</heading><chapeau>The Council shall elect a chairman from among its membership within 15 days after the earlier of—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the date on which all members of the Council have been appointed under paragraph (2)(A); or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>45 days after the date of enactment of this Act.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><heading><inline class="smallCaps">Majority required for action</inline>.—</heading><content>A majority of the members of the Council present and voting is required for the Council to take action. No person shall be elected chairman of the Council who receives fewer than 5 votes.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Administrative Support</inline>.—</heading><content>The Secretary of Transportation shall provide such administrative support to the Council as it needs in order to carry out its duties under this section.</content></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Travel Expenses</inline>.—</heading><content>Each member of the Council shall serve without pay, but shall receive travel expenses, including per diem in lieu of subsistence, in accordance with section 5702 and 5703 of title 5, United States Code.</content></subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><heading><inline class="smallCaps">Meetings</inline>.—</heading><content>Each meeting of the Council, other than a meeting at which proprietary information is to be discussed, shall be open to the public.</content></subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote><heading><inline class="smallCaps">Access to Information.</inline>—</heading><content>Amtrak shall make available to the Council all information the Council requires to carry out its duties under this section. The Council shall establish appropriate procedures to ensure against the public disclosure of any information obtained under this subsection that is a trade secret or commercial or financial information that is privileged or confidential.</content></subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><heading><inline class="smallCaps">Duties</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Evaluation and recommendation</inline>.—</heading><chapeau>The Council shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>evaluate Amtrak’s performance; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>make recommendations to Amtrak for achieving further cost containment and productivity improvements, and financial reforms.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Specific considerations</inline>.—</heading><chapeau>In making its evaluation and recommendations under paragraph (1), the Council shall consider all relevant performance factors, including—</chapeau> <page identifier="/us/stat/111/2581">111 STAT. 2581</page> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>Amtrak’s operation as a national passenger rail system which provides access to all regions of the country and ties together existing and emerging rail passenger corridors;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>appropriate methods for adoption of uniform cost and accounting procedures throughout the Amtrak system, based on generally accepted accounting principles; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>management efficiencies and revenue enhancements, including savings achieved through labor and contracting negotiations.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Monitor work-rule savings.—</inline></heading><chapeau>If, after January 1, 1997, Amtrak enters into an agreement involving work-rules intended to achieve savings with an organization representing Amtrak employees, then Amtrak shall report quarterly to the Council—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the savings realized as a result of the agreement; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>how the savings are allocated.</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num><heading><inline class="smallCaps">Annual Report</inline>.—</heading><chapeau>Each year before the fifth anniversary of the date of enactment of this Act, the Council shall submit to the Congress a report that includes an assessment of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Amtrak’s progress on the resolution of productivity issues; or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the status of those productivity issues,</content></paragraph> <continuation class="indent0 fontsize10">and makes recommendations for improvements and for any changes in law it believes to be necessary or appropriate.</continuation></subsection> <subsection class="indent0 fontsize10"><num value="i">(i) </num><heading><inline class="smallCaps">Authorization of Appropriations</inline>.—</heading><content>There are authorized to be appropriated to the Council such sums as may be necessary to enable the Council to carry out its duties.</content></subsection></section> <section><num value="204">SEC. 204. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s24101">49 USC 24101</ref> note.</p></sidenote><heading>SUNSET TRIGGER.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">In General.</inline>—</heading><chapeau>If at any time more than 2 years after the date of enactment of this Act and implementation of the financial plan referred to in section 24104(d) of title 49, United States Code, as amended by section 201 of this Act, the Amtrak Reform Council finds that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Amtrak’s business performance will prevent it from meeting the financial goals set forth in section 24104(d) of title 49, United States Code, as amended by section 201 of this Act; or</content></paragraph> <continuation class="indent0 fontsize10">Amtrak will require operating grant funds after the fifth anniversary of the date of enactment of this Act, then the Council shall immediately notify the President, the Committee on Commerce, Science, and Transportation of the United States Senate, and the Committee on Transportation and Infrastructure of the United States House of Representatives.</continuation></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Factors Considered</inline>.—</heading><chapeau>In making a finding under subsection (a), the Council shall take into account—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Amtrak’s performance;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the findings of the independent assessment conducted under section 202;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>the level of Federal funds made available for carrying out the financial plan referred to in section 24104(d) of title 49, United States Code, as amended by section 201 of this Act; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Acts of God, national emergencies, and other events beyond the reasonable control of Amtrak.</content></paragraph></subsection> <page identifier="/us/stat/111/2582">111 STAT. 2582</page> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Action Plan.</inline>—</heading><chapeau>Within 90 days after the Council makes a finding under subsection (a)—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>it shall develop and submit to the Congress an action plan for a restructured and rationalized national intercity rail passenger system; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Amtrak shall develop and submit to the Congress an action plan for the complete liquidation of Amtrak, after having the plan reviewed by the Inspector General of the Department of Transportation and the General Accounting Office for accuracy and reasonableness.</content></paragraph></subsection></section> <section><num value="205">SEC. 205. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s24101">49 USC 24101</ref> note.</p></sidenote><heading>SENATE PROCEDURE FOR CONSIDERATION OF RESTRUCTURING AND LIQUIDATION PLANS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">In General.</inline>—</heading><content>If, within 90 days (not counting any day on which either House is not in session) after a restructuring plan is submitted to the House of Representatives and the Senate by the Amtrak Reform Council under section 204 of this Act, an implementing Act with respect to a restructuring plan (without regard to whether it is the plan submitted) has not been passed by the Congress, then a liquidation disapproval resolution shall be introduced in the Senate by the Majority Leader of the Senate, for himself and the Minority Leader of the Senate, or by Members of the Senate designated by the Majority Leader and Minority Leader of the Senate. The liquidation disapproval resolution shall be held at the desk at the request of the Presiding Officer.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Consideration in the Senate</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Referral and reporting</inline>.—</heading><content>A liquidation disapproval resolution introduced in the Senate shall be placed directly and immediately on the Calendar.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Implementing resolution from house</inline>.—</heading><content>When the Senate receives from the House of Representatives a liquidation disapproval resolution, the resolution shall not be referred to committee and shall be placed on the Calendar.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Consideration of single liquidation disapproval resolution</inline>.—</heading><content>After the Senate has proceeded to the consideration of a liquidation disapproval resolution under this subsection, then no other liquidation disapproval resolution originating in that same House shall be subject to the procedures set forth in this section.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><heading><inline class="smallCaps">Amendments</inline>.—</heading><content>No amendment to the resolution is in order except an amendment that is relevant to liquidation of Amtrak. Consideration of the resolution for amendment shall not exceed one hour excluding time for recorded votes and quorum calls. No amendment shall be subject to further amendment, except for perfecting amendments.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><heading><inline class="smallCaps">Motion nondebatable</inline>.—</heading><content>A motion to proceed to consideration of a liquidation disapproval resolution under this subsection shall not be debatable. It shall not be in order to move to reconsider the vote by which the motion to proceed was adopted or rejected, although subsequent motions to proceed may be made under this paragraph.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><heading><inline class="smallCaps">Limit on consideration</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>After no more than 20 hours of consideration of a liquidation disapproval resolution, the Senate shall proceed, without intervening action or debate (except as permitted under paragraph (9)), to vote on the final disposition thereof to the exclusion of all amendments not then pending <page identifier="/us/stat/111/2583">111 STAT. 2583</page>and to the exclusion of all motions, except a motion to reconsider or table.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>The time for debate on the liquidation disapproval resolution shall be equally divided between the Majority Leader and the Minority Leader or their designees.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><heading><inline class="smallCaps">Debate of amendments</inline>.—</heading><content>Debate on any amendment to a liquidation disapproval resolution shall be limited to one hour, equally divided and controlled by the Senator proposing the amendment and the majority manager, unless the majority manager is in favor of the amendment, in which case the minority manager shall be in control of the time in opposition.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><heading><inline class="smallCaps">No motion to recommit.</inline>—</heading><content>A motion to recommit a liquidation disapproval resolution shall not be in order.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><heading><inline class="smallCaps">Disposition of senate resolution</inline>.—</heading><content>If the Senate has read for the third time a liquidation disapproval resolution that originated in the Senate, then it shall be in order at any time thereafter to move to proceed to the consideration of a liquidation disapproval resolution for the same special message received from the House of Representatives and placed on the Calendar pursuant to paragraph (2), strike all after the enacting clause, substitute the text of the Senate liquidation disapproval resolution, agree to the Senate amendment, and vote on final disposition of the House liquidation disapproval resolution, all without any intervening action or debate.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10) </num><heading><inline class="smallCaps">Consideration of house message</inline>.—</heading><content>Consideration in the Senate of all motions, amendments, or appeals necessary to dispose of a message from the House of Representatives on a liquidation disapproval resolution shall be limited to not more than 4 hours. Debate on each motion or amendment shall be limited to 30 minutes. Debate on any appeal or point of order that is submitted in connection with the disposition of the House message shall be limited to 20 minutes. Any time for debate shall be equally divided and controlled by the proponent and the majority manager, unless the majority manager is a proponent of the motion, amendment, appeal, or point of order, in which case the minority manager shall be in control of the time in opposition.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Consideration in Conference</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Convening of conference</inline>.—</heading><content>In the case of disagreement between the two Houses of Congress with respect to a liquidation disapproval resolution passed by both Houses, conferees should be promptly appointed and a conference promptly convened, if necessary.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Senate consideration</inline>.—</heading><content>Consideration in the Senate of the conference report and any amendments in disagreement on a liquidation disapproval resolution shall be limited to not more than 4 hours equally divided and controlled by the Majority Leader and the Minority Leader or their designees. A motion to recommit the conference report is not in order.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Liquidation disapproval resolution</inline>.—</heading><content>The term “liquidation disapproval resolution” means only a resolution of either House of Congress which is introduced as provided in subsection (a) with respect to the liquidation of Amtrak.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Restructuring plan</inline>.—</heading><content>The term “restructuring plan” means a plan to provide for a restructured and rationalized national intercity rail passenger transportation system.</content></paragraph></subsection> <page identifier="/us/stat/111/2584">111 STAT. 2584</page> <subsection class="indent0 fontsize10"><num value="e">(e) </num><heading><inline class="smallCaps">Rules of Senate.</inline>—</heading><chapeau>This section is enacted by the Congress—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>as an exercise of the rulemaking power of the Senate, and as such they are deemed a part of the rules of the Senate, but applicable only with respect to the procedure to be followed in the Senate in the case of a liquidation disapproval resolution; and they supersede other rules only to the extent that they are inconsistent therewith; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>with full recognition of the constitutional right of the Senate to change the rules (so far as relating to the procedure of the Senate) at any time, in the same manner and to the same extent as in the case of any other rule of the Senate.</content></paragraph></subsection></section> <section><num value="206">SEC. 206. </num><heading>ACCESS TO RECORDS AND ACCOUNTS.</heading> <content>Section 24315 is amended by adding at the end the following new subsection: <quotedContent><subsection class="indent0 fontsize10"><num value="h">“(h) </num><heading><inline class="smallCaps">Access to Records and Accounts</inline>.—</heading><content>A State shall have access to Amtrak’s records, accounts, and other necessary documents used to determine the amount of any payment to Amtrak required of the State.”.</content></subsection></quotedContent></content></section> <section><num value="207">SEC. 207. </num><heading>OFFICERS’ PAY.</heading> <content>Section 24303(b) is amended by adding at the end the following: “<quotedText>The preceding sentence shall not apply for any fiscal year for which no Federal assistance is provided to Amtrak.</quotedText>”.</content></section> <section><num value="208">SEC. 208. </num><heading>EXEMPTION FROM TAXES.</heading> <chapeau>Section 24301(l)(1) is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking so much as precedes “exempt from a tax” and inserting the following: <quotedContent><paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>Amtrak, a rail carrier subsidiary of Amtrak, and any passenger or other customer of Amtrak or such subsidiary, are”;</content></paragraph></quotedContent></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by striking “<quotedText>tax or fee imposed</quotedText>” and all that follows through “levied on it” and inserting “<quotedText>tax, fee, head charge, or other charge, imposed or levied by a State, political subdivision, or local taxing authority on Amtrak, a rail carrier subsidiary of Amtrak, or on persons traveling in intercity rail passenger transportation or on mail or express transportation provided by Amtrak or such a subsidiary, or on the carriage of such persons, mail, or express, or on the sale of any such transportation, or on the gross receipts derived therefrom</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by amending the last sentence thereof to read as follows: “In the case of a tax or fee that Amtrak was required to pay as of September 10, 1982, Amtrak is not exempt from such tax or fee if it was assessed before April 1, 1997.”.</content></paragraph></section> <section><num value="209">SEC. 209. </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s24104">49 USC 24104</ref> note.</p></sidenote><heading>LIMITATION ON USE OF TAX REFUND.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">In General.</inline>—</heading><chapeau>Amtrak may not use any amount received under section 977 of the Taxpayer Relief Act of 1997—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>for any purpose other than making payments to non-Amtrak States (pursuant to section 977(c) of that Act), or the financing of qualified expenses (as that term is defined in section 977(e)(1) of that Act); or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>to offset other amounts used for any purpose other than the financing of such expenses.</content></paragraph></subsection> <page identifier="/us/stat/111/2585">111 STAT. 2585</page> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Report by ARC</inline>.—</heading><content>The Amtrak Reform Council shall report quarterly to the Congress on the use of amounts received by Amtrak under section 977 of the Taxpayer Relief Act of 1997.</content></subsection></section> <num value="I">TITLE III—</num><heading>AUTHORIZATION OF APPROPRIATIONS</heading> <section><num value="301">SEC. 301. </num><heading>AUTHORIZATION OF APPROPRIATIONS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Amendment</inline>.—</heading><content>Section 24104(a) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>There are authorized to be appropriated to the Secretary of Transportation—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>$1,138,000,000 for fiscal year 1998;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>$1,058,000,000 for fiscal year 1999;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><content>$1,023,000,000 for fiscal year 2000;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">“(4) </num><content>$989,000,000 for fiscal year 2001; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">“(5) </num><content>$955,000,000 for fiscal year 2002,</content></paragraph> <continuation class="indent0 fontsize10">for the benefit of Amtrak for capital expenditures under chapters 243, 247, and 249 of this title, operating expenses, and payments described in subsection (c)(1) (A) through (C). In fiscal years following the fifth anniversary of the enactment of the Amtrak Reform and Accountability Act of 1997 no funds authorized for Amtrak shall be used for operating expenses other than those prescribed for tax liabilities under section 3221 of the Internal Revenue Code of 1986 that are more than the amount needed for benefits of individuals who retire from Amtrak and for their beneficiaries.”.</continuation></subsection></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Amtrak Reform Legislation</inline>.—</heading><content>This Act constitutes <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s172">26 USC 172</ref> note.</p></sidenote>Amtrak reform legislation within the meaning of section 977(f)(1) of the Taxpayer Relief Act of 1997.</content></subsection></section> <num value="I">TITLE IV—</num><heading>MISCELLANEOUS</heading> <section><num value="401">SEC. 401. </num><heading>STATUS AND APPLICABLE LAWS.</heading> <chapeau>Section 24301 is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking “<quotedText>rail carrier under section 10102</quotedText>” in subsection (a)(1) and inserting “<quotedText>railroad carrier under section 20102(2) and chapters 261 and 281</quotedText>”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by amending subsection (c) to read as follows: <quotedContent><subsection class="indent0 fontsize10"><num value="c">“(c) </num><heading><inline class="smallCaps">Application of Subtitle IV</inline>.—</heading><content>Subtitle IV of this title shall not apply to Amtrak, except for sections 11301, 11322(a), 11502, and 11706. Notwithstanding the preceding sentence, Amtrak shall continue to be considered an employer under the Railroad Retirement Act of 1974, the Railroad Unemployment Insurance Act, and the Railroad Retirement Tax Act.”.</content></subsection></quotedContent></content></paragraph></section> <section><num value="402">SEC. 402. </num><heading>WASTE DISPOSAL.</heading> <content>Section 24301(m)(1)(A) is amended by striking “1996” and inserting “<quotedText>2001</quotedText>”.</content></section> <section><num value="403">SEC. 403. </num><heading>ASSISTANCE FOR UPGRADING FACILITIES.</heading> <content>Section 24310 and the item relating thereto in the table of sections for chapter 243 are repealed.</content></section> <page identifier="/us/stat/111/2586">111 STAT. 2586</page> <section><num value="404">SEC. 404. </num><heading>DEMONSTRATION OF NEW TECHNOLOGY.</heading> <content>Section 24314 and the item relating thereto in the table of sections for chapter 243 are repealed.</content></section> <section><num value="405">SEC. 405. </num><heading>PROGRAM MASTER PLAN FOR BOSTON-NEW YORK MAIN LINE.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Repeal.</inline>—</heading><content>Section 24903 is repealed and the table of sections for chapter 249 is amended by striking the item relating to that section.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Conforming Amendments.</inline>—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>Section 24902 is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by striking subsections (a), (c), and (d) and redesignating subsection (b) as subsection (a) and subsections (e) through (m) as subsections (b) through (j), respectively; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>in subsection (j), as so redesignated by subparagraph (A) of this paragraph, by striking “<quotedText>(m)</quotedText>”.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>Section 24904(a) is amended—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>by inserting “<quotedText>and</quotedText>” at the end of paragraph (6);</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>by striking “<quotedText>; and</quotedText>” at the end of paragraph (7) and inserting a period; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>by striking paragraph (8).</content></subparagraph></paragraph></subsection></section> <section><num value="406">SEC. 406. </num><heading>AMERICANS WITH DISABILITIES ACT OF 1990.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s24307">49 USC 24307</ref> note.</p></sidenote><heading><inline class="smallCaps">Application to Amtrak.</inline>—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Access improvements at certain shared stations</inline>.—</heading><content>Amtrak is responsible for its share, if any, of the costs of accessibility improvements required by the Americans With Disabilities Act of 1990 at any station jointly used by Amtrak and a commuter authority.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Certain requirements not to apply until 1998</inline>.—</heading><content>Amtrak shall not be subject to any requirement under subsection (a)(1), (a)(3), or (e)(2) of section 242 of the Americans With Disabilities Act of 1990 (42 U.S.C. 12162) until January 1, 1998.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><chapeau>Section 24307 is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking subsection (b); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by redesignating subsection (c) as subsection (b).</content></paragraph></subsection></section> <section><num value="407">SEC. 407. </num><heading>DEFINITIONS.</heading> <chapeau>Section 24102 is amended—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>by striking paragraphs (2) and (11);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>by redesignating paragraphs (3) through (10) as paragraphs (2) through (9), respectively; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>by inserting “<quotedText>, including a unit of State or local government,</quotedText>” after “means a person” in paragraph (7), as so redesignated.</content></paragraph></section> <section><num value="408">SEC. 408. </num><heading>NORTHEAST CORRIDOR COST DISPUTE.</heading> <content>Section 1163 of the Northeast Rail Service Act of 1981 (45 U.S.C. 1111) is repealed.</content></section> <section><num value="409">SEC. 409. </num><heading>INSPECTOR GENERAL ACT OF 1978 AMENDMENT.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Amendment</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 8G(a)(2) of the Inspector General Act of 1978 (5 U.S.C. App.) is amended by striking “Amtrak,”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/app8G">5 USC app. 8G</ref> note.</p></sidenote><heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendment made by paragraph (1) shall take effect at the beginning of the first fiscal year after a fiscal year for which Amtrak receives no Federal subsidy.</content></paragraph></subsection> <page identifier="/us/stat/111/2587">111 STAT. 2587</page> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Amtrak Not Federal Entity.—</inline></heading><content>Amtrak shall not be considered <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/app8G">5 USC app. 8G</ref> note.</p> <p class="indent0 firstIndent0 fontsize8">Applicability.</p> </sidenote>a Federal entity for purposes of the Inspector General Act of 1978. The preceding sentence shall apply for any fiscal year for which Amtrak receives no Federal subsidy.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Federal Subsidy</inline>.—</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/app8G">5 USC app. 8G</ref> note.</p></sidenote> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Assessment</inline>.—</heading><chapeau>In any fiscal year for which Amtrak requests Federal assistance, the Inspector General of the Department of Transportation shall review Amtrak’s operations and conduct an assessment similar to the assessment required by section 202(a). The Inspector General shall report the results <sidenote><p class="indent0 firstIndent0 fontsize8">Reports.</p></sidenote>of the review and assessment to—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the President of Amtrak;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the Secretary of Transportation;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>the United States Senate Committee on Appropriations;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>the United States Senate Committee on Commerce, Science, and Transportation;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E) </num><content>the United States House of Representatives Committee on Appropriations; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="F">(F) </num><content>the United States House of Representatives Committee on Transportation and Infrastructure.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Report</inline>.—</heading><content>The report shall be submitted, to the extent practicable, before any such committee reports legislation authorizing or appropriating funds for Amtrak for capital acquisition, development, or operating expenses.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Special effective date</inline>.—</heading><content>This subsection takes effect 1 year after the date of enactment of this Act.</content></paragraph></subsection></section> <section><num value="410">SEC. 410. </num><heading>INTERSTATE RAIL COMPACTS.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s24101">49 USC 24101</ref> note.</p></sidenote> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Consent to Compacts</inline>.—</heading><chapeau>Congress grants consent to States with an interest in a specific form, route, or corridor of intercity passenger rail service (including high speed rail service) to enter into interstate compacts to promote the provision of the service, including—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>retaining an existing service or commencing a new service;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>assembling rights-of-way; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><chapeau>performing capital improvements, including—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the construction and rehabilitation of maintenance facilities;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the purchase of locomotives; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>operational improvements, including communications, signals, and other systems.</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Financing</inline>.—</heading><chapeau>An interstate compact established by States under subsection (a) may provide that, in order to carry out the compact, the States may—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>accept contributions from a unit of State or local government or a person;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>use any Federal or State funds made available for intercity passenger rail service (except funds made available for Amtrak);</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><chapeau>on such terms and conditions as the States consider advisable—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>borrow money on a short-term basis and issue notes for the borrowing; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>issue bonds; and</content></subparagraph></paragraph> <page identifier="/us/stat/111/2588">111 STAT. 2588</page> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>obtain financing by other means permitted under Federal or State law.</content></paragraph></subsection></section> <section><num value="411">SEC. 411. </num><heading>BOARD OF DIRECTORS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Amendment.</inline>—</heading><content>Section 24302 is amended to read as follows: <quotedContent><section><num value="24302">“§ 24302. </num><heading>Board of Directors</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><heading><inline class="smallCaps">Reform Board.—</inline></heading> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><heading><inline class="smallCaps">Establishment and duties.</inline>—</heading><content>The Reform Board described in paragraph (2) shall assume the responsibilities of the Board of Directors of Amtrak by March 31, 1998, or as soon thereafter as at least 4 members have been appointed and qualified. The Board appointed under prior law shall be abolished when the Reform Board assumes such responsibilities.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2)</num><heading><inline class="smallCaps">Membership</inline>.—</heading><subparagraph class="inline"><num value="A">(A)</num><clause class="inline"><num value="i">(i) </num><content>The Reform Board shall consist of 7 voting members appointed by the President, by and with the advice and consent of the Senate, for a term of 5 years.</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>Notwithstanding clause (i), if the Secretary of Transportation is appointed to the Reform Board, such appointment shall not be subject to the advice and consent of the Senate. If appointed, the Secretary may be represented at Board meetings by his designee.</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>In selecting the individuals described in subparagraph (A) for nominations for appointments to the Reform Board, the President should consult with the Speaker of the House of Representatives, the Minority Leader of the House of Representatives, the Majority Leader of the Senate, and the Minority Leader of the Senate.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><chapeau>Appointments under subparagraph (A) shall be made from among individuals who—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>have technical qualifications, professional standing, and demonstrated expertise in the fields of transportation or corporate or financial management;</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>are not representatives of rail labor or rail management; and</content></clause> <clause class="indent3 fontsize10"><num value="iii">“(iii) </num><content>in the case of 6 of the 7 individuals selected, are not employees of Amtrak or of the United States.</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>The President of Amtrak shall serve as an ex officio, nonvoting member of the Reform Board.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">“(3) </num><heading><inline class="smallCaps">Confirmation procedure in senate</inline>.—</heading> <subparagraph class="indent2 fontsize10"><num value="A">“(A) </num><chapeau>This paragraph is enacted by the Congress—</chapeau> <clause class="indent3 fontsize10"><num value="i">“(i) </num><content>as an exercise of the rulemaking power of the Senate, and as such it is deemed a part of the rules of the Senate, but applicable only with respect to the procedure to be followed in the Senate in the case of a motion to discharge; and it supersedes other rules only to the extent that it is inconsistent therewith; and</content></clause> <clause class="indent3 fontsize10"><num value="ii">“(ii) </num><content>with full recognition of the constitutional right of the Senate to change the rules (so far as relating to the procedure of the Senate) at any time, in the same manner and to the same extent as in the case of any other rule of the Senate.</content></clause></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">“(B) </num><content>If, by the first day of June on which the Senate is in session after a nomination is submitted to the Senate under this section, the committee to which the nomination <page identifier="/us/stat/111/2589">111 STAT. 2589</page>was referred has not reported the nomination, then it shall be discharged from further consideration of the nomination and the nomination shall be placed on the Executive Calendar.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">“(C) </num><content>It shall be in order at any time thereafter to move to proceed to the consideration of the nomination without any intervening action or debate.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">“(D) </num><content>After no more than 10 hours of debate on the nomination, which shall be evenly divided between, and controlled by, the Majority Leader and the Minority Leader, the Senate shall proceed without intervening action to vote on the nomination.</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><heading><inline class="smallCaps">Board of Directors</inline>.—</heading><chapeau>Five years after the establishment of the Reform Board under subsection (a), a Board of Directors shall be selected—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">“(1) </num><content>if Amtrak has, during the then current fiscal year, received Federal assistance, in accordance with the procedures set forth in subsection (a)(2); or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">“(2) </num><content>if Amtrak has not, during the then current fiscal year, received Federal assistance, pursuant to bylaws adopted by the Reform Board (which shall provide for employee representation), and the Reform Board shall be dissolved.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><heading><inline class="smallCaps">Authority to Recommend Plan</inline>.—</heading><content>The Reform Board shall have the authority to recommend to the Congress a plan to implement the recommendations of the 1997 Working Group on InterCity Rail regarding the transfer of Amtrak’s infrastructure assets and responsibilities to a new separately governed corporation.”.</content></subsection></section></quotedContent></content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Effect on Authorizations.</inline>—</heading><content>If the Reform Board has not <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s24104">49 USC 24104</ref> note.</p></sidenote>assumed the responsibilities of the Board of Directors of Amtrak before July 1, 1998, all provisions authorizing appropriations under the amendments made by section 301(a) of this Act for a fiscal year after fiscal year 1998 shall cease to be effective. The preceding sentence shall have no effect on funds provided to Amtrak pursuant to section 977 of the Taxpayer Relief Act of 1997.</content></subsection></section> <section><num value="412">SEC. 412. </num><heading>EDUCATIONAL PARTICIPATION.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s24305">49 USC 24305</ref> note.</p></sidenote> <content>Amtrak shall participate in educational efforts with elementary and secondary schools to inform students on the advantages of rail travel and the need for rail safety.</content></section> <section><num value="413">SEC. 413. </num><heading>REPORT TO CONGRESS ON AMTRAK BANKRUPTCY.</heading> <content>Within 120 days after the date of enactment of this Act, the Comptroller General shall submit a report identifying financial and other issues associated with an Amtrak bankruptcy to the United States Senate Committee on Commerce, Science, and Transportation and to the United States House of Representatives Committee on Transportation and Infrastructure. The report shall include an analysis of the implications of such a bankruptcy on the Federal Government, Amtrak’s creditors, and the Railroad Retirement System.</content></section> <section><num value="414">SEC. 414. </num><heading>AMTRAK TO NOTIFY CONGRESS OF LOBBYING RELATIONSHIPS.</heading> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s24315">49 USC 24315</ref> note.</p></sidenote> <chapeau>If, at any time, during a fiscal year in which Amtrak receives Federal assistance, Amtrak enters into a consulting contract or similar arrangement, or a contract for lobbying, with a lobbying firm, an individual who is a lobbyist, or who is affiliated with a lobbying firm, as those terms are defined in section 3 of the <page identifier="/us/stat/111/2590">111 STAT. 2590</page>Lobbying Disclosure Act of 1995 (2 U.S.C. 1602), Amtrak shall notify the United States Senate Committee on Commerce, Science, and Transportation, and the United States House of Representatives Committee on Transportation and Infrastructure of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the name of the individual or firm involved;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the purpose of the contract or arrangement; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>the amount and nature of Amtrak’s financial obligation under the contract.</content></paragraph> <continuation class="indent0 fontsize10">This section applies only to contracts, renewals or extensions of contracts, or arrangements entered into after the date of the enactment of this Act.</continuation></section> <section><num value="415">SEC. 415. </num><heading>FINANCIAL POWERS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Capitalization.</inline>—</heading><paragraph class="inline"><num value="1">(1) </num><content>Section 24304 is amended to read as follows: <quotedContent><section><num value="24304">“§ 24304. </num><heading>Employee stock ownership plans</heading> <content>“In issuing stock pursuant to applicable corporate law, Amtrak is encouraged to include employee stock ownership plans.”.</content></section></quotedContent></content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The item relating to section 24304 in the table of sections of chapter 243 is amended to read as follows: <quotedContent><toc><referenceItem role="section"><designator>“24304. </designator><label>Employee stock ownership plans.”.</label></referenceItem></toc></quotedContent></content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s24304">49 USC 24304</ref> note.</p></sidenote><heading><inline class="smallCaps">Redemption of Common Stock.—</inline></heading><content>Amtrak shall, before October 1, 2002, redeem all common stock previously issued, for the fair market value of such stock.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s24304">49 USC 24304</ref> note.</p></sidenote><heading><inline class="smallCaps">Elimination of Liquidation Preference and Voting Rights of Preferred Stock.</inline>—</heading><paragraph class="inline"><num value="1">(1)</num><subparagraph class="inline"><num value="A">(A) </num><content>Preferred stock of Amtrak held by the Secretary of Transportation shall confer no liquidation preference.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote><content>Subparagraph (A) shall take effect 90 days after the date of the enactment of this Act.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2)</num><subparagraph class="inline"><num value="A">(A) </num><content>Preferred stock of Amtrak held by the Secretary of Transportation shall confer no voting rights.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote><content>Subparagraph (A) shall take effect 60 days after the date of the enactment of this Act.</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Status and Applicable Laws</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Section 24301(a)(3) is amended by inserting “<quotedText>, and shall not be subject to title 31</quotedText>” after “United States Government”.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Section 9101(2) of title 31, United States Code, relating to Government corporations, is amended by striking subparagraph <page identifier="/us/stat/111/2591">111 STAT. 2591</page>(A) and redesignating subparagraphs (B) through (L) as subparagraphs (A) through (K), respectively.</content></paragraph></subsection></section> Approved December 2, 1997.
LEGISLATIVE HISTORY—S. 738 (H.R. 2247): HOUSE REPORTS: No. 105–251 accompanying H.R. 2247 (Comm. on Transportation and Infrastructure). SENATE REPORTS: No. 105–85 (Comm. on Commerce, Science, and Transportation). CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 7, considered and passed Senate.

Nov. 13, considered and passed House, amended. Senate concurred in House amendment.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):

Dec. 2, Presidential statement.

 Public Law 105–135: To reauthorize the programs of the Small Business Administration, and for other purposes. Public Law 135 Public Law 105–135 111 Stat. 2592 1997-12-02 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105 public 111 STAT. 2592 Public Law 105–135 105th Congress
An Act To reauthorize the programs of the Small Business Administration, and for other purposes.

Dec. 2, 1997

[S. 1139]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Small Business Reauthorization Act of 1997.

15 USC 631 note.
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.— This Act may be cited as the “Small Business Reauthorization Act of 1997”. (b) Table of Contents.— The table of contents for this Act is as follows: Sec. 1. Sec. 2. Sec. 3. TITLE I— Sec. 101. TITLE II— Subtitle A— Sec. 201. Sec. 202. Subtitle B— Sec. 211. Sec. 212. Sec. 213. Sec. 214. Sec. 215. Sec. 216. Subtitle C— Sec. 221. Sec. 222. Sec. 223. Subtitle D— Sec. 231. Sec. 232. Sec. 233. TITLE III— Sec. 301. Sec. 302. Sec. 303. Sec. 304. Sec. 305. Sec. 306. Sec. 307. 111 STAT. 2593 Sec. 308. TITLE IV— Subtitle A— Sec. 401. Sec. 402. Sec. 403. Sec. 404. Sec. 405. Subtitle B— Sec. 411. Sec. 412. Sec. 413. Sec. 414. Sec. 415. Sec. 416. Sec. 417. TITLE V— Sec. 501. Sec. 502. Sec. 503. Sec. 504. Sec. 505. Sec. 506. Sec. 507. Sec. 508. Sec. 509. TITLE VI— Sec. 601. Sec. 602. Sec. 603. Sec. 604. Sec. 605. Sec. 606. Sec. 607. TITLE VII— Sec. 701. Sec. 702. Sec. 703. Sec. 704. Sec. 705. Sec. 706. Sec. 707. Sec. 708. Sec. 709.
SEC. 2. DEFINITIONS.

15 USC 631 note.

 In this Act— (1) the term “Administration” means the Small Business Administration; (2) the term “Administrator” means the Administrator of the Small Business Administration; (3) the term “Committees” means the Committees on Small Business of the House of Representatives and the Senate; and (4) the term “small business concern” has the meaning given the term in section 3 of the Small Business Act (15 U.S.C. 632).
SEC. 3. EFFECTIVE DATE.

15 USC 631 note.

 This Act and the amendments made by this Act shall take effect on October 1, 1997.
111 STAT. 2594 <num value="I">TITLE I—</num> <heading>AUTHORIZATIONS</heading> <section> <num value="101">SEC. 101. </num> <heading>AUTHORIZATIONS.</heading> <content>Section 20 of the Small Business Act (15 U.S.C. 631 note) is amended by striking subsections (c) through (q) and inserting the following:<quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num> <heading><inline class="smallCaps">Fiscal Year 1998</inline>.—</heading> <paragraph class="indent1 fontsize10"> <num value="1">“(1) </num> <heading><inline class="smallCaps">Program levels</inline>.—</heading> <chapeau>The following program levels are authorized for fiscal year 1998:</chapeau><subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <chapeau>For the programs authorized by this Act, the Administration is authorized to make—</chapeau> <clause class="indent3 fontsize10"> <num value="i">“(i) </num> <content>$40,000,000 in technical assistance grants, as provided in section 7(m); and</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">“(ii) </num> <content>$60,000,000 in direct loans, as provided in section 7(m).</content> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <chapeau>For the programs authorized by this Act, the Administration is authorized to make $16,040,000,000 in deferred participation loans and other financings. Of such sum, the Administration is authorized to make—</chapeau> <clause class="indent3 fontsize10"> <num value="i">“(i) </num> <content>$12,000,000,000 in general business loans as provided in section 7(a);</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">“(ii) </num> <content>$3,000,000,000 in financings as provided in section 7(a)(13) of this Act and section 504 of the Small Business Investment Act of 1958;</content> </clause> <clause class="indent3 fontsize10"> <num value="iii">“(iii) </num> <content>$1,000,000,000 in loans as provided in section 7(a)(21); and</content> </clause> <clause class="indent3 fontsize10"> <num value="iv">“(iv) </num> <content>$40,000,000 in loans as provided in section 7(m).</content> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">“(C) </num> <chapeau>For the programs authorized by title III of the Small Business Investment Act of 1958, the Administration is authorized to make—</chapeau> <clause class="indent3 fontsize10"> <num value="i">“(i) </num> <content>$700,000,000 in purchases of participating securities; and</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">“(ii) </num> <content>$600,000,000 in guarantees of debentures.</content> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="D">“(D) </num> <content>For the programs authorized by part B of title IV of the Small Business Investment Act of 1958, the Administration is authorized to enter into guarantees not to exceed $2,000,000,000, of which not more than $650,000,000 may be in bonds approved pursuant to section 411(a)(3) of that Act.</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="E">“(E) </num> <chapeau>The Administration is authorized to make grants or enter into cooperative agreements—</chapeau> <clause class="indent3 fontsize10"> <num value="i">“(i) </num> <content>for the Service Corps of Retired Executives program authorized by section 8(b)(1), $4,000,000; and</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">“(ii) </num> <content>for activities of small business development centers pursuant to section 21(c)(3)(G), $15,000,000, to remain available until expended.</content> </clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">“(2) </num> <heading><inline class="smallCaps">Additional authorizations</inline>.—</heading> <subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <content>There are authorized to be appropriated to the Administration for fiscal year 1998 such sums as may be necessary to carry out this Act, including administrative expenses and necessary loan capital for disaster loans pursuant to section 7(b), and to carry out the Small Business Investment Act of 1958, including salaries and expenses of the Administration.</content> </subparagraph> <page identifier="/us/stat/111/2595">111 STAT. 2595</page> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <chapeau>Notwithstanding subparagraph (A), for fiscal year 1998—</chapeau> <clause class="indent3 fontsize10"> <num value="i">“(i) </num> <content>no funds are authorized to be provided to carry out the loan program authorized by section 7(a)(21) except by transfer from another Federal department or agency to the Administration, unless the program level authorized for general business loans under paragraph (1)(B)(i) is fully funded; and</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">“(ii) </num> <content>the Administration may not approve loans on behalf of the Administration or on behalf of any other department or agency, by contract or otherwise, under terms and conditions other than those specifically authorized under this Act or the Small Business Investment Act of 1958, except that it may approve loans under section 7(a)(21) of this Act in gross amounts of not more than $1,250,000.</content> </clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num> <heading><inline class="smallCaps">Fiscal Year 1999</inline>.—</heading> <paragraph class="indent1 fontsize10"> <num value="1">“(1) </num> <heading><inline class="smallCaps">Program levels</inline>.—</heading> <chapeau>The following program levels are authorized for fiscal year 1999:</chapeau><subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <chapeau>For the programs authorized by this Act, the Administration is authorized to make—</chapeau> <clause class="indent3 fontsize10"> <num value="i">“(i) </num> <content>$40,000,000 in technical assistance grants as provided in section 7(m); and</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">“(ii) </num> <content>$60,000,000 in direct loans, as provided in section 7(m).</content> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <chapeau>For the programs authorized by this Act, the Administration is authorized to make $17,540,000,000 in deferred participation loans and other financings. Of such sum, the Administration is authorized to make—</chapeau> <clause class="indent3 fontsize10"> <num value="i">“(i) </num> <content>$13,000,000,000 in general business loans as provided in section 7(a);</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">“(ii) </num> <content>$3,500,000,000 in financings as provided in section 7(a)(13) of this Act and section 504 of the Small Business Investment Act of 1958;</content> </clause> <clause class="indent3 fontsize10"> <num value="iii">“(iii) </num> <content>$1,000,000,000 in loans as provided in section 7(a)(21); and</content> </clause> <clause class="indent3 fontsize10"> <num value="iv">“(iv) </num> <content>$40,000,000 in loans as provided in section 7(m).</content> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">“(C) </num> <chapeau>For the programs authorized by title III of the Small Business Investment Act of 1958, the Administration is authorized to make—</chapeau> <clause class="indent3 fontsize10"> <num value="i">“(i) </num> <content>$800,000,000 in purchases of participating securities; and</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">“(ii) </num> <content>$700,000,000 in guarantees of debentures.</content> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="D">“(D) </num> <content>For the programs authorized by part B of title IV of the Small Business Investment Act of 1958, the Administration is authorized to enter into guarantees not to exceed $2,000,000,000, of which not more than $650,000,000 may be in bonds approved pursuant to section 411(a)(3) of that Act.</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="E">“(E) </num> <chapeau>The Administration is authorized to make grants or enter cooperative agreements—</chapeau> <clause class="indent3 fontsize10"> <num value="i">“(i) </num> <content>for the Service Corps of Retired Executives program authorized by section 8(b)(1), $4,500,000; and</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">“(ii) </num> <content>for activities of small business development centers pursuant to section 21(c)(3)(G), not to exceed $15,000,000, to remain available until expended.</content> </clause> <page identifier="/us/stat/111/2596">111 STAT. 2596</page> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">“(2) </num> <heading><inline class="smallCaps">Additional authorizations</inline>.—</heading> <subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <content>There are authorized to be appropriated to the Administration for fiscal year 1999 such sums as may be necessary to carry out this Act, including administrative expenses and necessary loan capital for disaster loans pursuant to section 7(b), and to carry out the Small Business Investment Act of 1958, including salaries and expenses of the Administration.</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <chapeau>Notwithstanding subparagraph (A), for fiscal year 1999—</chapeau> <clause class="indent3 fontsize10"> <num value="i">“(i) </num> <content>no funds are authorized to be provided to carry out the loan program authorized by section 7(a)(21) except by transfer from another Federal department or agency to the Administration, unless the program level authorized for general business loans under paragraph (1)(B)(i) is fully funded; and</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">“(ii) </num> <content>the Administration may not approve loans on behalf of the Administration or on behalf of any other department or agency, by contract or otherwise, under terms and conditions other than those specifically authorized under this Act or the Small Business Investment Act of 1958, except that it may approve loans under section 7(a)(21) of this Act in gross amounts of not more than $1,250,000.</content> </clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num> <heading><inline class="smallCaps">Fiscal Year 2000</inline>.—</heading> <paragraph class="indent1 fontsize10"> <num value="1">“(1) </num> <heading><inline class="smallCaps">Program levels</inline>.—</heading> <chapeau>The following program levels are authorized for fiscal year 2000:</chapeau><subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <chapeau>For the programs authorized by this Act, the Administration is authorized to make—</chapeau> <clause class="indent3 fontsize10"> <num value="i">“(i) </num> <content>$40,000,000 in technical assistance grants as provided in section 7(m); and</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">“(ii) </num> <content>$60,000,000 in direct loans, as provided in section 7(m).</content> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <chapeau>For the programs authorized by this Act, the Administration is authorized to make $20,040,000,000 in deferred participation loans and other financings. Of such sum, the Administration is authorized to make—</chapeau> <clause class="indent3 fontsize10"> <num value="i">“(i) </num> <content>$14,500,000,000 in general business loans as provided in section 7(a);</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">“(ii) </num> <content>$4,500,000,000 in financings as provided in section 7(a)(13) of this Act and section 504 of the Small Business Investment Act of 1958;</content> </clause> <clause class="indent3 fontsize10"> <num value="iii">“(iii) </num> <content>$1,000,000,000 in loans as provided in section 7(a)(21); and</content> </clause> <clause class="indent3 fontsize10"> <num value="iv">“(iv) </num> <content>$40,000,000 in loans as provided in section 7(m).</content> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">“(C) </num> <chapeau>For the programs authorized by title III of the Small Business Investment Act of 1958, the Administration is authorized to make—</chapeau> <clause class="indent3 fontsize10"> <num value="i">“(i) </num> <content>$900,000,000 in purchases of participating securities; and</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">“(ii) </num> <content>$800,000,000 in guarantees of debentures.</content> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="D">“(D) </num> <content>For the programs authorized by part B of title IV of the Small Business Investment Act of 1958, the Administration is authorized to enter into guarantees not to exceed $2,000,000,000, of which not more than <page identifier="/us/stat/111/2597">111 STAT. 2597</page>$650,000,000 may be in bonds approved pursuant to section 411(a)(3) of that Act.</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="E">“(E) </num> <chapeau>The Administration is authorized to make grants or enter cooperative agreements—</chapeau> <clause class="indent3 fontsize10"> <num value="i">“(i) </num> <content>for the Service Corps of Retired Executives program authorized by section 8(b)(1), $5,000,000; and</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">“(ii) </num> <content>for activities of small business development centers pursuant to section 21(c)(3)(G), not to exceed $15,000,000, to remain available until expended.</content> </clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">“(2) </num> <heading><inline class="smallCaps">Additional authorizations</inline>.—</heading> <subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <content>There are authorized to be appropriated to the Administration for fiscal year 2000 such sums as may be necessary to carry out this Act, including administrative expenses and necessary loan capital for disaster loans pursuant to section 7(b), and to carry out the Small Business Investment Act of 1958, including salaries and expenses of the Administration.</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <chapeau>Notwithstanding subparagraph (A), for fiscal year 2000—</chapeau> <clause class="indent3 fontsize10"> <num value="i">“(i) </num> <content>no funds are authorized to be provided to carry out the loan program authorized by section 7(a)(21) except by transfer from another Federal department or agency to the Administration, unless the program level authorized for general business loans under paragraph (1)(B)(i) is fully funded; and</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">“(ii) </num> <content>the Administration may not approve loans on behalf of the Administration or on behalf of any other department or agency, by contract or otherwise, under terms and conditions other than those specifically authorized under this Act or the Small Business Investment Act of 1958, except that it may approve loans under section 7(a)(21) of this Act in gross amounts of not more than $1,250,000.”.</content> </clause> </subparagraph> </paragraph> </subsection> </quotedContent> </content> </section> <num value="II">TITLE II—</num> <heading>FINANCIAL ASSISTANCE</heading> <subtitle> <num value="A">Subtitle A—</num> <heading>Microloan Program</heading> <section> <num value="201">SEC. 201. </num> <heading>MICROLOAN PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num> <heading><inline class="smallCaps">Loan Limits</inline>.—</heading> <content>Section 7(m)(3)(C) of the Small Business Act (15 U.S.C. 636(m)(3)(C)) is amended by striking “<quotedText>$2,500,000</quotedText>” and inserting “<quotedText>$3,500,000</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <heading><inline class="smallCaps">Loan Loss Reserve Fund</inline>.—</heading> <content>Section 7(m)(3)(D) of the Small Business Act (15 U.S.C. 636(m)(3)(D)) is amended by striking clauses (i) and (ii), and inserting the following:<quotedContent> <clause class="indent3 fontsize10"> <num value="i">“(i) </num> <content>during the initial 5 years of the intermediary’s participation in the program under this subsection, at a level equal to not more than 15 percent of the outstanding balance of the notes receivable owed to the intermediary; and</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">“(ii) </num> <chapeau>in each year of participation thereafter, at a level equal to not more than the greater of—</chapeau> <page identifier="/us/stat/111/2598">111 STAT. 2598</page> <subclause class="indent4 fontsize10"> <num value="I">“(I) </num> <content>2 times an amount reflecting the total losses of the intermediary as a result of participation in the program under this subsection, as determined by the Administrator on a case-by-case basis; or</content> </subclause> <subclause class="indent4 fontsize10"> <num value="II">“(II) </num> <content>10 percent of the outstanding balance of the notes receivable owed to the intermediary.”.</content> </subclause> </clause> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num> <heading><inline class="smallCaps">Authorization of Appropriations</inline>.—</heading> <chapeau>Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is amended—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>in the subsection heading, by striking “<quotedText>Demonstration</quotedText>”;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>by striking “<quotedText>Demonstration</quotedText>” each place that term appears;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>by striking “<quotedText>demonstration</quotedText>” each place that term appears; and</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="4">(4) </num> <content>in paragraph (12), by striking “<quotedText>during fiscal years 1995 through 1997</quotedText>” and inserting “<quotedText>during fiscal years 1998 through 2000</quotedText>”.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num> <heading><inline class="smallCaps">Technical Assistance Grants</inline>.—</heading> <chapeau>Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is amended—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <chapeau>in paragraph (4)(E)—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>by striking “<quotedText>Each intermediary</quotedText>” and inserting the following:<quotedContent> <clause class="indent3 fontsize10"> <num value="i">“(i) </num> <heading><inline class="smallCaps">In general</inline>.—</heading> <content>Each intermediary”;</content> </clause> </quotedContent> </content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>by striking “<quotedText>15</quotedText>” and inserting “<quotedText>25</quotedText>”; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">(C) </num> <content>by adding at the end the following:<quotedContent> <clause class="indent3 fontsize10"> <num value="ii">“(ii) </num> <heading>Technical assistance.—</heading> <content>An intermediary may expend not more than 25 percent of the funds received under paragraph (1)(B)(ii) to enter into third party contracts for the provision of technical assistance.”; and</content> </clause> </quotedContent> </content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <chapeau>in paragraph (5)(A)—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>by striking “<quotedText>in each of the 5 years of the demonstration program established under this subsection,</quotedText>”; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>by striking “<quotedText>for terms of up to 5 years</quotedText>” and inserting “<quotedText>annually</quotedText>”.</content> </subparagraph> </paragraph> </subsection> </section> <section> <num value="202">SEC. 202. </num> <heading>WELFARE-TO-WORK MICROLOAN INITIATIVE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num> <heading><inline class="smallCaps">Initiative</inline>.—</heading> <chapeau>Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is amended—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <chapeau>in paragraph (1)(A)—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>in clause (ii), by striking “<quotedText>and</quotedText>” at the end;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>in clause (iii), by striking the period at the end and inserting “<quotedText>; and</quotedText>”; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">(C) </num> <content>by adding at the end the following:<quotedContent> <clause class="indent3 fontsize10"> <num value="iv">“(iv) </num> <chapeau>to establish a welfare-to-work microloan initiative, which shall be administered by the Administration, in order to test the feasibility of supplementing the technical assistance grants provided under clauses (ii) and (iii) of subparagraph (B) to individuals who are receiving assistance under the State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.), or under any comparable State funded means tested program of assistance for low-income individuals, in order to adequately assist those individuals in—</chapeau> <subclause class="indent4 fontsize10"> <num value="I">“(I) </num> <content>establishing small businesses; and</content> </subclause> <page identifier="/us/stat/111/2599">111 STAT. 2599</page> <subclause class="indent4 fontsize10"> <num value="II">“(II) </num> <content>eliminating their dependence on that assistance.”;</content> </subclause> </clause> </quotedContent> </content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>in paragraph (4), by adding at the end the following:<quotedContent> <subparagraph class="indent2 fontsize10"> <num value="F">“(F) </num> <heading><inline class="smallCaps">Supplemental grant</inline>.—</heading> <clause class="indent3 fontsize10"> <num value="i">“(i) </num> <heading>In general.—</heading> <content>The Administration may accept any funds transferred to the Administration from other departments or agencies of the Federal Government to make grants in accordance with this subparagraph and section 202(b) of the Small Business Reauthorization Act of 1997 to participating intermediaries and technical assistance providers under paragraph (5), for use in accordance with clause (iii) to provide additional technical assistance and related services to recipients of assistance under a State program described in paragraph (1)(A)(iv) at the time they initially apply for assistance under this subparagraph.</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">“(ii) </num> <heading><inline class="smallCaps">Eligible recipients; grant amounts</inline>.—</heading> <content>In making grants under this subparagraph, the Administration may select, from among participating intermediaries and technical assistance providers described in clause (i), not more than 20 grantees in fiscal year 1998, not more than 25 grantees in fiscal year 1999, and not more than 30 grantees in fiscal year 2000, each of whom may receive a grant under this subparagraph in an amount not to exceed $200,000 per year.</content> </clause> <clause class="indent3 fontsize10"> <num value="iii">“(iii) </num> <heading><inline class="smallCaps">Use of grant amounts</inline>.—</heading> <chapeau>Grants under this subparagraph—</chapeau> <subclause class="indent4 fontsize10"> <num value="I">“(I) </num> <content>are in addition to other grants provided under this subsection and shall not require the contribution of matching amounts as a condition of eligibility; and</content> </subclause> <subclause class="indent4 fontsize10"> <num value="II">“(II) </num> <chapeau>may be used by a grantee—</chapeau> <item class="indent5 fontsize10"> <num value="aa">“(aa) </num> <content>to pay or reimburse a portion of child care and transportation costs of recipients of assistance described in clause (i), to the extent such costs are not otherwise paid by State block grants under the Child Care Development Block Grant Act of 1990 (42 U.S.C. 9858 et seq.) or under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.); and</content> </item> <item class="indent5 fontsize10"> <num value="bb">“(bb) </num> <content>for marketing, management, and technical assistance to recipients of assistance described in clause (i).</content> </item> </subclause> </clause> <clause class="indent3 fontsize10"> <num value="iv">“(iv) </num> <heading>Memorandum of understanding—</heading> <chapeau>Prior to accepting any transfer of funds under clause (i) from a department or agency of the Federal Government, the Administration shall enter into a Memorandum of Understanding with the department or agency, which shall—</chapeau> <subclause class="indent4 fontsize10"> <num value="I">“(I) </num> <content>specify the terms and conditions of the grants under this subparagraph; and</content> </subclause> <subclause class="indent4 fontsize10"> <num value="II">“(II) </num> <content>provide for appropriate monitoring of expenditures by each grantee under this subparagraph and each recipient of assistance described in clause (i) who receives assistance from a grantee <page identifier="/us/stat/111/2600">111 STAT. 2600</page>under this subparagraph, in order to ensure compliance with this subparagraph by those grantees and recipients of assistance.”;</content> </subclause> </clause> </subparagraph> </quotedContent> </content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>in paragraph (6), by adding at the end the following:<quotedContent> <subparagraph class="indent2 fontsize10"> <num value="E">“(E) </num> <heading><inline class="smallCaps">Establishment of child care or transportation businesses</inline>.—</heading> <content>In addition to other eligible small businesses concerns, borrowers under any program under this subsection may include individuals who will use the loan proceeds to establish for-profit or nonprofit child care establishments or businesses providing for-profit transportation services.”;</content> </subparagraph> </quotedContent> </content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="4">(4) </num> <chapeau>in paragraph (9)—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>by striking the paragraph designation and paragraph heading and inserting the following:<quotedContent> <subparagraph class="indent2 fontsize10"> <num value="9">“(9) </num> <heading><inline class="smallCaps">Grants for management, marketing, technical assistance, and related services.</inline>—”</heading> <content>; and</content> </subparagraph> </quotedContent> </content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>by adding at the end the following:<quotedContent> <subparagraph class="indent2 fontsize10"> <num value="C">“(C) </num> <heading><inline class="smallCaps">Welfare-to-work microloan initiative</inline>.—</heading> <content>Of amounts made available to carry out the welfare-to-work microloan initiative under paragraph (1)(A)(iv) in any fiscal year, the Administration may use not more than 5 percent to provide technical assistance, either directly or through contractors, to welfare-to-work microloan initiative grantees, to ensure that, as grantees, they have the knowledge, skills, and understanding of microlending and welfare-to-work transition, and other related issues, to operate a successful welfare-to-work microloan initiative.”; and (5) by</content> </subparagraph> </quotedContent> </content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="5">(5) </num> <content>adding at the end the following:<quotedContent> <paragraph class="indent1 fontsize10"> <num value="13">“(13) <sidenote><p class="firstIndent1 fontsize8">Reports.</p></sidenote></num> <heading><inline class="smallCaps">Evaluation of welfare-to-work microloan initiative</inline>.—</heading> <content>On January 31, 1999, and annually thereafter, the Administration shall submit to the Committees on Small Business of the House of Representatives and the Senate a report on any monies distributed pursuant to paragraph (4)(F).”.</content> </paragraph> </quotedContent> </content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) <sidenote><p class="firstIndent1 fontsize8"><ref href="/us/usc/t15/s636">15 USC 636 note.</ref></p></sidenote></num> <heading><inline class="smallCaps">Transfer of Funds</inline>—</heading> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading> <content>No funds are authorized to be appropriated or otherwise provided to carry out the grant program under section 7(m)(4)(F) of the Small Business Act (15 U.S.C. 636(m)(4)(F)) (as added by this section), except by transfer from another department or agency of the Federal Government to the Administration in accordance with this subsection.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <heading><inline class="smallCaps">Limitation on amounts</inline>.—</heading> <chapeau>The total amount transferred to the Administration from other departments and agencies of the Federal Government to carry out the grant program under section 7(m)(4)(F) of the Small Business Act (15 U.S.C. 636(m)(4)(F)) (as added by this section) shall not exceed—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>$3,000,000 for fiscal year 1998;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>$4,000,000 for fiscal year 1999; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">(C) </num> <content>$5,000,000 for fiscal year 2000.</content> </subparagraph> </paragraph> </subsection> </section> </subtitle> <subtitle> <num value="B">Subtitle B—</num> <heading>Small Business Investment Company Program</heading> <section> <num value="211">SEC. 211. </num> <heading>5-YEAR COMMITMENTS FOR SBICS AT OPTION OF ADMINISTRATOR.</heading> <content>Section 20(a)(2) of the Small Business Act (15 U.S.C. 631 note) is amended in the last sentence by striking “<quotedText>the following fiscal <page identifier="/us/stat/111/2601">111 STAT. 2601</page>year</quotedText>” and inserting “<quotedText>any 1 or more of the 4 subsequent fiscal years</quotedText>”.</content> </section> <section> <num value="212">SEC. 212. </num> <heading>UNDERSERVED AREAS.</heading> <chapeau>Section 301(c)(4)(B) of the Small Business Investment Act of 1958 (15 U.S.C. 681(c)(4)(B)) is amended to read as follows:</chapeau><subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <heading><inline class="smallCaps">Leverage</inline>.—</heading> <content>An applicant licensed pursuant to the exception provided in this paragraph shall not be eligible to receive leverage as a licensee until the applicant satisfies the requirements of section 302(a), unless the applicant— <quotedContent> <clause class="indent3 fontsize10"> <num value="i">“(i) </num> <content>files an application for a license not later than 180 days after the date of enactment of the Small Business Reauthorization Act of 1997;</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">“(ii) </num> <content>is located in a State that is not served by a licensee; and</content> </clause> <clause class="indent3 fontsize10"> <num value="iii">“(iii) </num> <content>agrees to be limited to 1 tier of leverage available under section 302(b), until the applicant meets the requirements of section 302(a).”.</content> </clause> </quotedContent> </content> </subparagraph> </section> <section> <num value="213">SEC. 213. </num> <heading>PRIVATE CAPITAL.</heading> <chapeau>Section 103(9)(B)(iii) of the Small Business Investment Act of 1958 (15 U.S.C. 662(9)(B)(iii)) is amended—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>by redesignating subclauses (I) and (II) as subclauses and (III), respectively; and</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>by inserting before subclause (II) (as redesignated) the following:<quotedContent> <subparagraph class="indent2 fontsize10"> <num value="I">“(I) </num> <content>funds obtained from the business revenues (excluding any governmental appropriation) of any federally chartered or government-sponsored corporation established prior to October 1, 1987;”.</content> </subparagraph> </quotedContent> </content> </paragraph> </section> <section> <num value="214">SEC. 214. </num> <heading>FEES.</heading> <content>Section 301 of the Small Business Investment Act of 1958 (15 U.S.C. 681) is amended by adding at the end the following:<quotedContent><subsection class="indent0 fontsize10"> <num value="e">“(e) </num> <heading><inline class="smallCaps">Fees</inline>.—</heading> <paragraph class="indent1 fontsize10"> <num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading> <content>The Administration may prescribe fees to be paid by each applicant for a license to operate as a small business investment company under this Act.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">“(2) </num> <heading><inline class="smallCaps">Use of amounts</inline>.—</heading> <chapeau>Fees collected under this subsection—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <content>shall be deposited in the account for salaries and expenses of the Administration; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <content>are authorized to be appropriated solely to cover the costs of licensing examinations.”.</content> </subparagraph> </paragraph> </subsection></quotedContent> </content> </section> <section> <num value="215">SEC. 215. </num> <heading>SMALL BUSINESS INVESTMENT COMPANY PROGRAM REFORM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num> <heading><inline class="smallCaps">Bank Investments</inline>.—</heading> <content>Section 302(b) of the Small Business Investment Act of 1958 (15 U.S.C. 682(b)) is amended by striking “<quotedText>1956,</quotedText>” and all that follows before the period and inserting the following: “1956, any national bank, or any member bank of the Federal Reserve System or nonmember insured bank to the extent permitted under applicable State law, may invest in any 1 or more small business investment companies, or in any entity established to invest solely in small business investment companies, except that in no event shall the total amount of such investments of any such bank exceed 5 percent of the capital and surplus of the bank”.</content> </subsection> <page identifier="/us/stat/111/2602">111 STAT. 2602</page> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <heading><inline class="smallCaps">Indexing for Leverage</inline>.—</heading> <chapeau>Section 303 of the Small Business Investment Act of 1958 (15 U.S.C. 683) is amended—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <chapeau>in subsection (b)—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>in paragraph (2), by adding at the end the following:<quotedContent> <subparagraph class="indent2 fontsize10"> <num value="D">“(D) </num> <clause class="inline"> <num value="i">(i) </num> <content>The dollar amounts in subparagraphs (A), (B), and (C) shall be adjusted annually to reflect increases in the Consumer Price Index established by the Bureau of Labor Statistics of the Department of Labor.</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">“(ii) </num> <content>The initial adjustments made under this subparagraph after the date of enactment of the Small Business Reauthorization Act of 1997 shall reflect only increases from March 31, 1993.”; and</content> </clause> </subparagraph> </quotedContent> </content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>by striking paragraph (4) and inserting the following:<quotedContent> <paragraph class="indent1 fontsize10"> <num value="4">“(4) </num> <heading><inline class="smallCaps">Maximum aggregate amount of leverage</inline>.—</heading> <subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading> <content>Except as provided in subparagraph (B), the aggregate amount of outstanding leverage issued to any company or companies that are commonly controlled (as determined by the Administrator) may not exceed $90,000,000, as adjusted annually for increases in the Consumer Price Index.</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <heading><inline class="smallCaps">Exceptions</inline>.—</heading> <chapeau>The Administrator may, on a case-by-case basis—</chapeau> <clause class="indent3 fontsize10"> <num value="i">“(i) </num> <content>approve an amount of leverage that exceeds the amount described in subparagraph (A) for companies under common control; and</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">“(ii) </num> <content>impose such additional terms and conditions as the Administrator determines to be appropriate to minimize the risk of loss to the Administration in the event of default.</content> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">“(C) </num> <heading><inline class="smallCaps">Applicability of other provisions</inline>.—</heading> <content>Any leverage that is issued to a company or companies commonly controlled in an amount that exceeds $90,000,000, whether as a result of an increase in the Consumer Price Index or a decision of the Administrator, is subject to subsection (d).”; and</content> </subparagraph> </paragraph> </quotedContent> </content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>by striking subsection (d) and inserting the following:<quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num> <heading><inline class="smallCaps">Required Certifications</inline>.—</heading> <paragraph class="indent1 fontsize10"> <num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading> <chapeau>The Administrator shall require each licensee, as a condition of approval of an application for leverage, to certify in writing—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <content>for licensees with leverage less than or equal to $90,000,000, that not less than 20 percent of the licensee’s aggregate dollar amount of financings will be provided to smaller enterprises; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <content>for licensees with leverage in excess of $90,000,000, that, in addition to satisfying the requirements of subparagraph (A), 100 percent of the licensee’s aggregate dollar amount of financings made in whole or in part with leverage in excess of $90,000,000 will be provided to smaller enterprises (as defined in section 103(12)).</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">“(2) </num> <heading><inline class="smallCaps">Multiple licensees</inline>.—</heading> <content>Multiple licensees under common control (as determined by the Administrator) shall be considered to be a single licensee for purposes of determining both the applicability of and compliance with the investment percentage requirements of this subsection.”.</content> </paragraph> </subsection> </quotedContent> </content> </paragraph> </subsection> <page identifier="/us/stat/111/2603">111 STAT. 2603</page> <subsection class="indent0 fontsize10"> <num value="c">(c) </num> <heading><inline class="smallCaps">Tax Distributions</inline>.—</heading> <content>Section 303(g)(8) of the Small Business Investment Act of 1958 (15 U.S.C. 683(g)(8)) is amended by adding at the end the following: “<quotedText>A company may also elect to make a distribution under this paragraph at the end of any calendar quarter based on a quarterly estimate of the maximum tax liability. If a company makes 1 or more quarterly distributions for a calendar year, and the aggregate amount of those distributions exceeds the maximum amount that the company could have distributed based on a single annual computation, any subsequent distribution by the company under this paragraph shall be reduced by an amount equal to the excess amount distributed.</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num> <heading><inline class="smallCaps">Leverage Fee</inline>.—</heading> <content>Section 303(i) of the Small Business Investment Act of 1958 (15 U.S.C. 683(i)) is amended by striking “<quotedText>payable upon</quotedText>” and all that follows before the period and inserting the following: “in the following manner: 1 percent upon the date on which the Administration enters into any commitment for such leverage with the licensee, and the balance of 2 percent (or 3 percent if no commitment has been entered into by the Administration) on the date on which the leverage is drawn by the licensee”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num> <heading><inline class="smallCaps">Periodic Issuance of Guarantees and Trust Certificates</inline>.—</heading> <content>Section 320 of the Small Business Investment Act of 1958 (15 U.S.C. 687m) is amended by striking “<quotedText>three months</quotedText>” and inserting “<quotedText>6 months</quotedText>”.</content> </subsection> </section> <section> <num value="216">SEC. 216. </num> <heading>EXAMINATION FEES.</heading> <content>Section 310(b) of the Small Business Investment Act of 1958 (15 U.S.C. 687b(b)) is amended by inserting after the first sentence the following: “Fees collected under this subsection shall be deposited in the account for salaries and expenses of the Administration, and are authorized to be appropriated solely to cover the costs of examinations and other program oversight activities.”.</content> </section> </subtitle> <subtitle> <num value="C">Subtitle C—</num> <heading>Certified Development Company Program</heading> <section> <num value="221">SEC. 221. </num> <heading>LOANS FOR PLANT ACQUISITION, CONSTRUCTION, CONVERSION, AND EXPANSION.</heading> <chapeau>Section 502 of the Small Business Investment Act of 1958 (15 U.S.C. 696) is amended—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>by striking paragraph (1) and inserting the following:<quotedContent> <paragraph class="indent1 fontsize10"> <num value="1">“(1) </num> <heading><inline class="smallCaps">Use of proceeds</inline>.—</heading> <content>The proceeds of any such loan shall be used solely by the borrower to assist 1 or more identifiable small business concerns and for a sound business purpose approved by the Administration.”;</content> </paragraph> </quotedContent> </content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>in paragraph (3), by adding at the end the following:<quotedContent> <subparagraph class="indent2 fontsize10"> <num value="D">“(D) </num> <heading><inline class="smallCaps">Seller financing</inline>.—</heading> <content>Seller-provided financing may be used to meet the requirements of subparagraph (B), if the seller subordinates the interest of the seller in the property to the debenture guaranteed by the Administration.</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="E">“(E) </num> <heading><inline class="smallCaps">Collateralization</inline>.—</heading> <content>The collateral provided by the small business concern shall generally include a subordinate lien position on the property being financed under this title, and is only 1 of the factors to be evaluated in the credit determination. Additional collateral shall be required only if the Administration determines, on a case-by-case <page identifier="/us/stat/111/2604">111 STAT. 2604</page>basis, that additional security is necessary to protect the interest of the Government.”; and</content> </subparagraph> </quotedContent> </content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>by adding at the end the following:<quotedContent> <paragraph class="indent1 fontsize10"> <num value="5">“(5) </num> <heading><inline class="smallCaps">Limitation on leasing</inline>—</heading> <content>In addition to any portion of the project permitted to be leased under paragraph (4), not to exceed 20 percent of the project may be leased by the assisted small business to 1 or more other tenants, if the assisted small business occupies permanently and uses not less than a total of 60 percent of the space in the project after the execution of any leases authorized under this section.”.</content> </paragraph> </quotedContent> </content> </paragraph> </section> <section> <num value="222">SEC. 222. </num> <heading>DEVELOPMENT COMPANY DEBENTURES.</heading> <chapeau>Section 503 of the Small Business Investment Act of 1958 (15 U.S.C. 697) is amended—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>in subsection (b)(7), by striking subparagraph (A) and inserting the following:<quotedContent> <subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <chapeau>assesses and collects a fee, which shall be payable by the borrower, in an amount established annually by the Administration, which amount shall not exceed the lesser of—</chapeau> <clause class="indent3 fontsize10"> <num value="i">“(i) </num> <content>0.9375 percent per year of the outstanding balance of the loan; and</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">“(ii) </num> <content>the minimum amount necessary to reduce the cost (as defined in section 502 of the Federal Credit Reform Act of 1990) to the Administration of purchasing and guaranteeing debentures under this Act to zero; and”; and</content> </clause> </subparagraph> </quotedContent> </content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>in subsection (f), by striking “<quotedText>1997</quotedText>” and inserting “<quotedText>2000</quotedText>”.</content> </paragraph> </section> <section> <num value="223">SEC. 223. </num> <heading>PREMIER CERTIFIED LENDERS PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading> <chapeau>Section 508 of the Small Business Investment Act of 1958 (15 U.S.C. 697e) is amended—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>in subsection (a), by striking “<quotedText>not more than 15</quotedText>”;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <chapeau>in subsection (b)—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <chapeau>in paragraph (2)—</chapeau> <clause class="indent3 fontsize10"> <num value="i">(i) </num> <content>in the matter preceding subparagraph (A), by striking “<quotedText>if such company</quotedText>”;</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">(ii) </num> <content>by striking subparagraphs (A) and (B) and inserting the following:<quotedContent> <subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <content>if the company is an active certified development company in good standing and has been an active participant in the accredited lenders program during the entire 12-month period preceding the date on which the company submits an application under paragraph (1), except that the Administration may waive this requirement if the company is qualified to participate in the accredited lenders program;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <chapeau>if the company has a history of—</chapeau> <clause class="indent3 fontsize10"> <num value="i">“(i) </num> <content>submitting to the Administration adequately analyzed debenture guarantee application packages; and</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">“(ii) </num> <content>of properly closing section 504 loans and servicing its loan portfolio;”;</content> </clause> </subparagraph> </quotedContent> </content> </clause> <clause class="indent3 fontsize10"> <num value="iii">(iii) </num> <chapeau>in subparagraph (C)—</chapeau> <subclause class="indent4 fontsize10"> <num value="I">(I) </num> <content>by inserting “<quotedText>if the company</quotedText>” after “(C)”; and</content> </subclause> <subclause class="indent4 fontsize10"> <num value="II">(II) </num> <content>by striking the period at the end and inserting “<quotedText>; and</quotedText>”; and</content> </subclause> <page identifier="/us/stat/111/2605">111 STAT. 2605</page> </clause> <clause class="indent3 fontsize10"> <num value="iv">(iv) </num> <content>by adding at the end the following:<quotedContent> <subparagraph class="indent2 fontsize10"> <num value="D">“(D) </num> <content>the Administrator determines, with respect to the company, that the loss reserve established in accordance with subsection (c)(2) is sufficient for the company to meet its obligations to protect the Federal Government from risk of loss.”; and</content> </subparagraph> </quotedContent> </content> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>by adding at the end the following:<quotedContent> <paragraph class="indent1 fontsize10"> <num value="3">“(3) </num> <heading><inline class="smallCaps">Applicability of criteria after designation</inline>.—</heading> <content>The Administrator may revoke the designation of a certified development company as a premier certified lender under this section at any time, if the Administrator determines that the certified development company does not meet any requirement described in subparagraphs (A) through (D) of paragraph (2).”;</content> </paragraph> </quotedContent> </content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>by striking subsection (c) and inserting the following:<quotedContent> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num> <heading><inline class="smallCaps">Loss Reserve</inline>.—</heading> <paragraph class="indent1 fontsize10"> <num value="1">“(1) </num> <heading><inline class="smallCaps">Establishment</inline>.—</heading> <content>A company designated as a premier certified lender shall establish a loss reserve for financing approved pursuant to this section.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">“(2) </num> <heading><inline class="smallCaps">Amount</inline>.—</heading> <content>The amount of each loss reserve established under paragraph (1) shall be 10 percent of the amount of the company’s exposure, as determined under subsection (b)(2)(C).</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">“(3) </num> <heading><inline class="smallCaps">Assets</inline>.—</heading> <chapeau>Each loss reserve established under paragraph (1) shall be comprised of—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <content>segregated funds on deposit in an account or accounts with a federally insured depository institution or institutions selected by the company, subject to a collateral assignment in favor of, and in a format acceptable to, the Administration;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <content>irrevocable letter or letters of credit, with a collateral assignment in favor of, and a commercially reasonable format acceptable to, the Administration; or</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">“(C) </num> <content>any combination of the assets described in subparagraphs (A) and (B).</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="4">“(4) </num> <heading><inline class="smallCaps">Contributions</inline>.—</heading> <chapeau>The company shall make contributions to the loss reserve, either cash or letters of credit as provided above, in the following amounts and at the following intervals:</chapeau><subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <content>50 percent when a debenture is closed.</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <content>25 percent additional not later than 1 year after a debenture is closed.</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">“(C) </num> <content>25 percent additional not later than 2 years after a debenture is closed.</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="5">“(5) </num> <heading><inline class="smallCaps">Replenishment</inline>.—</heading> <content>If a loss has been sustained by the Administration, any portion of the loss reserve, and other funds provided by the premier company as necessary, may be used to reimburse the Administration for the premier company’s 10 percent share of the loss as provided in subsection (b)(2)(C). If the company utilizes the reserve, within 30 days it shall replace an equivalent amount of funds.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="6">“(6) </num> <heading><inline class="smallCaps">Disbursements</inline>.—</heading> <content>The Administration shall allow the certified development company to withdraw from the loss reserve amounts attributable to any debenture that has been repaid.”;</content> </paragraph> </subsection> </quotedContent> </content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="4">(4) </num> <content>in subsection (d)(1), by striking “<quotedText>to approve loans</quotedText>” and inserting “<quotedText>to approve, authorize, close, service, foreclose, litigate (except that the Administration may monitor the conduct of <page identifier="/us/stat/111/2606">111 STAT. 2606</page>any such litigation to which a premier certified lender is a party), and liquidate loans</quotedText>”;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="5">(5) </num> <content>in subsection (f), by striking “<quotedText>State or local</quotedText>” and inserting “<quotedText>certified</quotedText>”;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="6">(6) </num> <content>in subsection (g), by striking the subsection heading and inserting the following:<quotedContent> <subsection class="indent0 fontsize10"> <num value="g">“(g) </num> <heading><inline class="smallCaps">Effect of Suspension or Revocation</inline>.—</heading> <content>”;</content> </subsection> </quotedContent> </content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="7">(7) </num> <content>by striking subsection (h) and inserting the following:<quotedContent> <subsection class="indent0 fontsize10"> <num value="h">“(h) </num> <heading><inline class="smallCaps">Program Goals</inline>.—</heading> <content>Each certified development company participating in the program under this section shall establish a goal of processing a minimum of not less than 50 percent of the loan applications for assistance under section 504 pursuant to the program authorized under this section”; and</content> </subsection> </quotedContent> </content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="8">(8) </num> <content>in subsection (i), by striking “<quotedText>other lenders</quotedText>” and inserting “<quotedText>other lenders, specifically comparing default rates and recovery rates on liquidations</quotedText>”.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <heading><inline class="smallCaps">Regulations</inline>.—</heading> <chapeau>The Administrator shall—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>not later than 150 days after the date of enactment of this Act, promulgate regulations to carry out the amendments made by subsection (a); and</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>not later than 180 days after the date of enactment of this Act, issue program guidelines and fully implement the amendments made by subsection (a).</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num> <heading><inline class="smallCaps">Program Extension</inline>.—</heading> <content>Section 217(b) of the Small Business Reauthorization and Amendments Act of 1994 (15 U.S.C. 697e note) is amended by striking “<quotedText>October 1, 1997</quotedText>” and inserting “<quotedText>October 1, 2000</quotedText>”.</content> </subsection> </section> </subtitle> <subtitle> <num value="D">Subtitle D—</num> <heading>Miscellaneous Provisions</heading> <section> <num value="231">SEC. 231. </num> <heading>BACKGROUND CHECK OF LOAN APPLICANTS.</heading> <chapeau>Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>by striking “<quotedText>(a) The Administration</quotedText>” and inserting the following:<quotedContent> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num> <heading><inline class="smallCaps">Loans to Small Business Concerns; Allowable Purposes; Qualified Business; Restrictions and Limitations</inline>.—</heading> <content>The Administration”; and</content> </subsection> </quotedContent> </content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <chapeau>in paragraph (1)—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>by striking “<quotedText>(1) No financial</quotedText>” and inserting the following:<quotedContent> <paragraph class="indent1 fontsize10"> <num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading> <subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <heading><inline class="smallCaps">Credit elsewhere</inline>.—</heading> <content>No financial”; and</content> </subparagraph> </paragraph> </quotedContent> </content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>by adding at the end the following:<quotedContent> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <heading><inline class="smallCaps">Background checks</inline>.—</heading> <content>Prior to the approval of any loan made pursuant to this subsection, or section 503 of the Small Business Investment Act of 1958, the Administrator may verify the applicant’s criminal background, or lack thereof, through the best available means, including, if possible, use of the National Crime Information Center computer system at the Federal Bureau of Investigation.”.</content> </subparagraph> </quotedContent> </content> </subparagraph> </paragraph> </section> <section> <num value="232">SEC. 232. </num> <heading>REPORT ON INCREASED LENDER APPROVAL, SERVICING, FORECLOSURE, LIQUIDATION, AND LITIGATION OF SECTION 7(a) LOANS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading> <page identifier="/us/stat/111/2607">111 STAT. 2607</page> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <heading><inline class="smallCaps">Submission</inline>.—</heading> <content>Not later than 6 months after the date Reports of enactment of this Act, the Administrator shall submit to the Committees a report on action taken and planned for future reliance on private sector lender resources to originate, approve, close, service, liquidate, foreclose, and litigate loans made under section 7(a) of the Small Business Act.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <heading><inline class="smallCaps">Contents</inline>.—</heading> <chapeau>The report under this subsection shall address administrative and other steps necessary to achieve the results described in paragraph (1), including—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>streamlining the process for approving lenders and standardizing requirements;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>establishing uniform reporting requirements using on-line automated capabilities to the maximum extent feasible;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">(C) </num> <content>reducing paperwork through automation, simplified forms, or incorporation of lender’s forms;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="D">(D) </num> <content>providing uniform standards for approval, closing, servicing, foreclosure, and liquidation;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="E">(E) </num> <content>promulgating new regulations or amending existing ones;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="F">(F) </num> <content>establishing a timetable for implementing the plan for reliance on private sector lenders;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="G">(G) </num> <content>implementing organizational changes at SBA; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="H">(H) </num> <content>estimating the annual savings that would occur as a result of implementation.</content> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <heading><inline class="smallCaps">Consultation</inline>.—</heading> <chapeau>In preparing the report under subsection (a), the Administrator shall consult with, among others—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>borrowers and lenders under section 7(a) of the Small Business Act;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>small businesses that are potential program participants under section 7(a) of the Small Business Act;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>financial institutions that are potential program lenders under section 7(a) of the Small Business Act; and</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="4">(4) </num> <content>representative industry associations.</content> </paragraph> </subsection> </section> <section> <num value="233">SEC. 233. </num> <heading>COMPLETION OF PLANNING FOR LOAN MONITORING SYSTEM. <sidenote><p class="firstIndent1 fontsize8"><ref href="/us/usc/t15/s633">15 USC 633 note.</ref></p></sidenote></heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading> <chapeau>The Administrator shall perform and complete the planning needed to serve as the basis for funding the development and implementation of the computerized loan monitoring system, including—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>fully defining the system requirement using on-line, automated capabilities to the extent feasible;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>identifying all data inputs and outputs necessary for timely report generation;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>benchmark loan monitoring business processes and systems against comparable industry processes and, if appropriate, simplify or redefine work processes based on these benchmarks;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="4">(4) </num> <content>determine data quality standards and control systems for ensuring information accuracy;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="5">(5) </num> <content>identify an acquisition strategy and work increments to completion;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="6">(6) </num> <content>analyze the benefits and costs of alternatives and use to demonstrate the advantage of the final project;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="7">(7) </num> <content>ensure that the proposed information system is consistent with the agency’s information architecture; and</content> </paragraph> <page identifier="/us/stat/111/2608">111 STAT. 2608</page> <paragraph class="indent1 fontsize10"> <num value="8">(8) </num> <content>estimate the cost to system completion, identifying the essential cost element.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <heading><inline class="smallCaps">Report</inline>.—</heading> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading> <chapeau>On the date that is 6 months after the date of enactment of this Act, the Administrator shall submit a report on the progress of the Administrator in carrying out subsection (a) to—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>the Committees; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>the Comptroller General of the United States.</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <heading><inline class="smallCaps">Evaluation</inline>.—</heading> <chapeau>Not later than 28 days after receipt of the report under paragraph (1)(B), the Comptroller General of the United States shall—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>prepare a written evaluation of the report for compliance with subsection (a); and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>submit the evaluation to the Committees.</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <heading><inline class="smallCaps">Limitation</inline>.—</heading> <content>None of the funds provided for the purchase of the loan monitoring system may be obligated or expended until 45 days after the date on which the Committees and the Comptroller General of the United States receive the report under paragraph (1).</content> </paragraph> </subsection> </section> </subtitle> <num value="III">TITLE III—</num> <heading>WOMEN’S BUSINESS ENTERPRISES</heading> <section> <num value="301">SEC. 301. </num> <heading>INTERAGENCY COMMITTEE PARTICIPATION.</heading> <chapeau>Section 403 of the Women’s Business Ownership Act of 1988 (15 U.S.C. 631 note) is amended—</chapeau><paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <chapeau>in subsection (a)(2)(A)—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>by striking “<quotedText>and Amendments Act of 1994</quotedText>” and inserting “<quotedText>Act of 1997</quotedText>”; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>by inserting before the final period “, and who shall report directly to the head of the agency on the status of the activities of the Interagency Committee”;</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>in subsection (a)(2)(B), by inserting before the final period the following: “and shall report directly to the Administrator on the status of the activities on the Interagency Committee and shall serve as the Interagency Committee Liaison to the National Women’s Business Council established under section 405”; and</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>in subsection (b), by striking “<quotedText>and Amendments Act of 1994</quotedText>” and inserting “<quotedText>Act of 1997</quotedText>”.</content> </paragraph> </section> <section> <num value="302">SEC. 302. </num> <heading>REPORTS.</heading> <chapeau>Section 404 of the Women’s Business Ownership Act of 1988 (15 U.S.C. 631 note) is amended—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>by inserting “<quotedText>, through the Small Business Administration,</quotedText>” after “transmit”;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>by striking paragraph (1) and redesignating paragraphs (2) through (4) as paragraphs (1) through (3), respectively; and</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>in paragraph (1), as redesignated, by inserting before the semicolon the following: “, including a verbatim report on the status of progress of the Interagency Committee in meeting its responsibilities and duties under section 402(a)”.</content> </paragraph> </section> <page identifier="/us/stat/111/2609">111 STAT. 2609</page> <section> <num value="303">SEC. 303. </num> <heading>COUNCIL DUTIES.</heading> <chapeau>Section 406 of the Women’s Business Ownership Act of 1988 (15 U.S.C. 631 note) is amended—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>in subsection (c), by inserting after “<quotedText>Administrator</quotedText>” the following: “(through the Assistant Administrator of the Office of Women’s Business Ownership)”; and</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <chapeau>in subsection (d)—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>in paragraph (4), by striking “<quotedText>and</quotedText>” at the end;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>in paragraph (5), by striking the period at the end and inserting a semicolon; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">(C) </num> <content>by adding at the end the following:<quotedContent> <paragraph class="indent1 fontsize10"> <num value="6">“(6) </num> <chapeau>not later than 90 days after the last day of each Reports, fiscal year, submit to the President and to the Committee on Small Business of the Senate and the Committee on Small Business of the House of Representatives, a report containing—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <content>a detailed description of the activities of the council, including a status report on the Council’s progress toward meeting its duties outlined in subsections (a) and (d) of section 406;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <content>the findings, conclusions, and recommendations of the Council; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">“(C) </num> <content>the Council’s recommendations for such legislation and administrative actions as the Council considers appropriate to promote the development of small business concerns owned and controlled by women.</content> </subparagraph> </paragraph> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num> <heading><inline class="smallCaps">Form of Transmittal</inline>.—</heading> <content>The information included in each report under subsection (d) that is described in subparagraphs (A) through (C) of subsection (dX6), shall be reported verbatim, together with any separate additional, concurring, or dissenting views of the Administrator.”.</content> </subsection> </quotedContent> </content> </subparagraph> </paragraph> </section> <section> <num value="304">SEC. 304. </num> <heading>COUNCIL MEMBERSHIP.</heading> <chapeau>Section 407 of the Women’s Business Ownership Act of 1988 (15 U.S.C. 631 note) is amended—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>in subsection (a), by striking “<quotedText>and Amendments Act of 1994</quotedText>” and inserting “<quotedText>Act of 1997</quotedText>”;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <chapeau>in subsection (b)—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>by striking “<quotedText>and Amendments Act of 1994</quotedText>” and inserting “<quotedText>Act of 1997</quotedText>”;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>by inserting after “<quotedText>the Administrator shall</quotedText>” the following: “, after receiving the recommendations of the Chairman and the Ranking Member of the Committees on Small Business of the House of Representatives and the Senate,”;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">(C) </num> <content>by striking “<quotedText>9</quotedText>” and inserting “<quotedText>14</quotedText>”;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="D">(D) </num> <content>in paragraph (1), by striking “<quotedText>2</quotedText>” and inserting “<quotedText>4</quotedText>”.</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="E">(E) </num> <content>in paragraph (2), by striking “<quotedText>2</quotedText>” and inserting “<quotedText>4</quotedText>”; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="F">(F) </num> <chapeau>in paragraph (3)—</chapeau> <clause class="indent3 fontsize10"> <num value="i">(i) </num> <content>by striking “<quotedText>5</quotedText>” and inserting “<quotedText>6</quotedText>”;</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">(ii) </num> <content>by striking “<quotedText>national</quotedText>”; and</content> </clause> <clause class="indent3 fontsize10"> <num value="iii">(iii) </num> <content>by inserting “<quotedText>, including representatives of women’s business center sites</quotedText>” before the period at the end;</content> </clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>in subsection (c), by inserting “<quotedText>(including both urban and rural areas)</quotedText>” after “geographic”;</content> </paragraph> <page identifier="/us/stat/111/2610">111 STAT. 2610</page> <paragraph class="indent1 fontsize10"> <num value="4">(4) </num> <content>by striking subsection (d) and inserting the following:<quotedContent> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num> <heading><inline class="smallCaps">Terms</inline>.—</heading> <chapeau>Each member of the Council shall be appointed for a term of 3 years, except that, of the initial members appointed to the Council—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">“(1) </num> <content>2 members appointed under subsection (b)(1) shall be appointed for a term of 1 year;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">“(2) </num> <content>2 members appointed under subsection (b)(2) shall be appointed for a term of 1 year; and</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">“(3) </num> <content>each member appointed under subsection (b)(3) shall be appointed for a term of 2 years.”; and</content> </paragraph> </subsection> </quotedContent> </content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="5">(5) </num> <content>by striking subsection (f) and inserting the following:<quotedContent> <subsection class="indent0 fontsize10"> <num value="f">“(f) </num> <heading><inline class="smallCaps">Vacancies</inline>.—</heading> <paragraph class="indent1 fontsize10"> <num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading> <content>A vacancy on the Council shall be filled not later than 30 days after the date on which the vacancy occurs, in the manner in which the original appointment was made, and shall be subject to any conditions that applied to the original appointment.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">“(2) </num> <heading><inline class="smallCaps">Unexpired term</inline>.—</heading> <content>An individual chosen to fill a vacancy shall be appointed for the unexpired term of the member replaced.”.</content> </paragraph> </subsection> </quotedContent> </content> </paragraph> </section> <section> <num value="305">SEC. 305. </num> <heading>AUTHORIZATION OF APPROPRIATIONS.</heading> <content>Section 409 of the Women’s Business Ownership Act of 1988 (15 U.S.C. 631 note) is amended to read as follows:<quotedContent> <section> <num value="411">“SEC. 411. </num> <heading>AUTHORIZATION OF APPROPRIATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading> <content>There is authorized to be appropriated to carry out this title $600,000, for each of fiscal years 1998 through 2000, of which $200,000 shall be available in each fiscal year to carry out sections 409 and 410.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num> <heading><inline class="smallCaps">Budget Review</inline>.—</heading> <content>No amount made available under this section for any fiscal year may be obligated or expended by the Council before the date on which the Council reviews and approves the operating budget of the Council to carry out the responsibilities of the Council for that fiscal year.”.</content> </subsection> </section> </quotedContent> </content> </section> <section> <num value="306">SEC. 306. </num> <heading>NATIONAL WOMEN’S BUSINESS COUNCIL PROCUREMENT PROJECT.</heading> <content>The Women’s Business Ownership Act of 1988 (15 U.S.C. 631 note) is amended by inserting after section 408 the following:<quotedContent> <section> <num value="409">“SEC. 409. </num> <heading>NATIONAL WOMEN’S BUSINESS COUNCIL PROCUREMENT PROJECT.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num> <heading><inline class="smallCaps">Federal Procurement Study</inline>.—</heading> <paragraph class="indent1 fontsize10"> <num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading> <chapeau>During the first fiscal year for which amounts are made available to carry out this section, the Council shall conduct a study on the award of Federal prime contracts and subcontracts to women-owned businesses, which study shall include—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <content>an analysis of data collected by Federal agencies on contract awards to women-owned businesses;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <content>a determination of the degree to which individual Federal agencies are in compliance with the 5 percent women-owned business procurement goal established by section 15(g)(1) of the Small Business Act (15 U.S.C. 644(g)(1));</content> </subparagraph> <page identifier="/us/stat/111/2611">111 STAT. 2611</page> <subparagraph class="indent2 fontsize10"> <num value="C">“(C) </num> <content>a determination of the types and amounts of Federal contracts characteristically awarded to women-owned businesses; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="D">“(D) </num> <content>other relevant information relating to participation of women-owned businesses in Federal procurement.</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">“(2) </num> <heading><inline class="smallCaps">Submission of results</inline>.—</heading> <content>Not later than 12 months after initiating the study under paragraph (1), the Council shall submit to the Committees on Small Business of the House of Representatives and the Senate, and to the President, the results of the study conducted under paragraph (1).</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num> <heading><inline class="smallCaps">Best Practices Report</inline>.—</heading> <chapeau>Not later than 18 months after initiating the study under subsection (a)(1), the Council shall submit to the Committees on Small Business of the House of Representatives and the Senate, and to the President, a report, which shall include—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">“(1) </num> <chapeau>an analysis of the most successful practices in attracting women-owned businesses as prime contractors and subcontractors by—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <content>Federal agencies (as supported by findings from the study required under subsection (a)(1)) in Federal procurement awards; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <content>the private sector; and</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">“(2) </num> <content>recommendations for policy changes in Federal procurement practices, including an increase in the Federal procurement goal for women-owned businesses, in order to maximize the number of women-owned businesses performing Federal contracts.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num> <heading><inline class="smallCaps">Contract Authority</inline>.—</heading> <content>In conducting any study or other research under this section, the Council may contract with 1 or more public or private entities.”.</content> </subsection> </section> </quotedContent> </content> </section> <section> <num value="307">SEC. 307. </num> <heading>STUDIES AND OTHER RESEARCH.</heading> <content>The Women’s Business Ownership Act of 1988 (15 U.S.C. 631 note) is amended by inserting after section 409 (as added by section 306 of this title) the following:<quotedContent> <section> <num value="410">“SEC. 410. </num> <heading>STUDIES AND OTHER RESEARCH.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading> <content>To the extent that it does not delay submission of the report under section 409(b), the Council may also conduct such studies and other research relating to the award of Federal prime contracts and subcontracts to women-owned businesses, or to issues relating to access to credit and investment capital by women entrepreneurs, as the Council determines to be appropriate.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num> <heading><inline class="smallCaps">Contract Authority</inline>.—</heading> <content>In conducting any study or other research under this section, the Council may contract with 1 or more public or private entities.”.</content> </subsection> </section> </quotedContent> </content> </section> <section> <num value="308">SEC. 308. </num> <heading>WOMEN’S BUSINESS CENTERS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading> <content>Section 29 of the Small Business Act (15 U.S.C. 656) is amended to read as follows:<quotedContent> <section> <num value="29">“SEC. 29. </num> <heading>WOMEN’S BUSINESS CENTER PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num> <heading><inline class="smallCaps">Definitions</inline>.—</heading> <chapeau>In this section—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">“(1) </num> <content>the term ‘Assistant Administrator’ means the Assistant Administrator of the Office of Women’s Business Ownership established under subsection (g);</content> </paragraph> <page identifier="/us/stat/111/2612">111 STAT. 2612</page> <paragraph class="indent1 fontsize10"> <num value="2">“(2) </num> <chapeau>the term ‘small business concern owned and controlled by women’, either startup or existing, includes any small business concern—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <content>that is not less than 51 percent owned by 1 or more women; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <content>the management and daily business operations of which are controlled by 1 or more women; and</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">“(3) </num> <chapeau>the term ‘women’s business center site’ means the location of—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <content>a women’s business center; or</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <chapeau>1 or more women’s business centers, established in conjunction with another women’s business center in another location within a State or region—</chapeau> <clause class="indent3 fontsize10"> <num value="i">“(i) </num> <content>that reach a distinct population that would otherwise not be served;</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">“(ii) </num> <content>whose services are targeted to women; and</content> </clause> <clause class="indent3 fontsize10"> <num value="iii">“(iii) </num> <content>whose scope, function, and activities are similar to those of the primary women’s business center or centers in conjunction with which it was established.</content> </clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num> <heading><inline class="smallCaps">Authority</inline>.—</heading> <chapeau>The Administration may provide financial assistance to private organizations to conduct 5-year projects for the benefit of small business concerns owned and controlled by women. The projects shall provide—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">“(1) </num> <content>financial assistance, including training and counseling in how to apply for and secure business credit and investment capital, preparing and presenting financial statements, and managing cash flow and other financial operations of a business concern;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">“(2) </num> <content>management assistance, including training and counseling in how to plan, organize, staff, direct, and control each major activity and function of a small business concern; and</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">“(3) </num> <content>marketing assistance, including training and counseling in identifying and segmenting domestic and international market opportunities, preparing and executing marketing plans, developing pricing strategies, locating contract opportunities, negotiating contracts, and utilizing varying public relations and advertising techniques.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num> <heading><inline class="smallCaps">Conditions of Participation</inline>.—</heading> <paragraph class="indent1 fontsize10"> <num value="1">“(1) </num> <heading><inline class="smallCaps">Non-federal contributions</inline>.—</heading> <chapeau>As a condition of receiving financial assistance authorized by this section, the recipient organization shall agree to obtain, after its application has been approved and notice of award has been issued, cash contributions from non-Federal sources as follows:</chapeau><subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <content>in the first and second years, 1 non-Federal dollar for each 2 Federal dollars;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <content>in the third and fourth years, 1 non-Federal dollar for each Federal dollar; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">“(C) </num> <content>in the fifth year, 2 non-Federal dollars for each Federal dollar.</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">“(2) </num> <heading><inline class="smallCaps">Form of non-federal contributions</inline>.—</heading> <content>Not more than one-half of the non-Federal sector matching assistance may be in the form of in-kind contributions that are budget line items only, including office equipment and office space.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">“(3) </num> <heading><inline class="smallCaps">Form of federal contributions</inline>—</heading> <content>The financial assistance authorized pursuant to this section may be made by grant, contract, or cooperative agreement and may contain such provision, as necessary, to provide for payments in lump <page identifier="/us/stat/111/2613">111 STAT. 2613</page>sum or installments, and in advance or by way of reimbursement. The Administration may disburse up to 25 percent of each year’s Federal share awarded to a recipient organization after notice of the award has been issued and before the non- Federal sector matching funds are obtained.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="4">“(4) </num> <heading><inline class="smallCaps">Failure to obtain non-federal funding</inline>.—</heading> <content>If any recipient of assistance fails to obtain the required non-Federal contribution during any project, it shall not be eligible thereafter for advance disbursements pursuant to paragraph (3) during the remainder of that project, or for any other project for which it is or may be funded by the Administration, and prior to approving assistance to such organization for any other projects, the Administration shall specifically determine whether the Administration believes that the recipient will be able to obtain the requisite non-Federal funding and enter a written finding setting forth the reasons for making such determination.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">“(d) </num> <heading><inline class="smallCaps">Contract Authority</inline>.—</heading> <content>A women’s business center may enter into a contract with a Federal department or agency to provide specific assistance to women and other underserved small business concerns. Performance of such contract should not hinder the women’s business centers in carrying out the terms of the grant received by the women’s business centers from the Administration.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num> <heading><inline class="smallCaps">Submission of 5-Year Plan</inline>.—</heading> <content>Each applicant organization initially shall submit a 5-year plan to the Administration on proposed fundraising and training activities, and a recipient organization may receive financial assistance under this program for a maximum of 5 years per women’s business center site.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">“(f) </num> <heading><inline class="smallCaps">Criteria</inline>.—</heading> <chapeau>The Administration shall evaluate and rank applicants in accordance with predetermined selection criteria that shall be stated in terms of relative importance. Such criteria and their relative importance shall be made publicly available and stated in each solicitation for applications made by the Administration. The criteria shall include—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">“(1) </num> <content>the experience of the applicant in conducting programs or ongoing efforts designed to impart or upgrade the business skills of women business owners or potential owners;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">“(2) </num> <content>the present ability of the applicant to commence a project within a minimum amount of time;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">“(3) </num> <content>the ability of the applicant to provide training and services to a representative number of women who are both socially and economically disadvantaged; and</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="4">“(4) </num> <content>the location for the women’s business center site proposed by the applicant.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">“(g) </num> <heading><inline class="smallCaps">Office of Women’s Business Ownership</inline>.—</heading> <paragraph class="indent1 fontsize10"> <num value="1">“(1) </num> <heading><inline class="smallCaps">Establishment</inline>.—</heading> <content>There is established within the Administration an Office of Women’s Business Ownership, which shall be responsible for the administration of the Administration’s programs for the development of women’s business enterprises (as defined in section 408 of the Women’s Business Ownership Act of 1988 (15 U.S.C. 631 note)). The Office of Women’s Business Ownership shall be administered by an Assistant Administrator, who shall be appointed by the Administrator.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">“(2) </num> <heading><inline class="smallCaps">Assistant administrator of the office of women’s business ownership</inline>.—</heading> <page identifier="/us/stat/111/2614">111 STAT. 2614</page> <subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <heading><inline class="smallCaps">Qualification</inline>.—</heading> <content>The position of Assistant Administrator shall be a Senior Executive Service position under section 3132(a)(2) of title 5, United States Code. The Assistant Administrator shall serve as a noncareer appointee (as defined in section 3132(a)(7) of that title).</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <heading><inline class="smallCaps">Responsibilities and duties</inline>.—</heading> <clause class="indent3 fontsize10"> <num value="i">“(i) </num> <heading><inline class="smallCaps">Responsibilities</inline>.—</heading> <chapeau>The responsibilities of the Assistant Administrator shall be to administer the programs and services of the Office of Women’s Business Ownership established to assist women entrepreneurs in the areas of—</chapeau> <subclause class="indent4 fontsize10"> <num value="I">“(I) </num> <content>starting and operating a small business;</content> </subclause> <subclause class="indent4 fontsize10"> <num value="II">“(II) </num> <content>development of management and technical skills;</content> </subclause> <subclause class="indent4 fontsize10"> <num value="III">“(III) </num> <content>seeking Federal procurement opportunities; and</content> </subclause> <subclause class="indent4 fontsize10"> <num value="IV">“(IV) </num> <content>increasing the opportunity for access to capital.</content> </subclause> </clause> <clause class="indent3 fontsize10"> <num value="ii">“(ii) </num> <heading><inline class="smallCaps">Duties</inline>.—</heading> <chapeau>The Assistant Administrator shall—</chapeau> <subclause class="indent4 fontsize10"> <num value="I">“(I) </num> <content>administer and manage the Women’s Business Center program;</content> </subclause> <subclause class="indent4 fontsize10"> <num value="II">“(II) </num> <content>recommend the annual administrative and program budgets for the Office of Women’s Business Ownership (including the budget for the Women’s Business Center program);</content> </subclause> <subclause class="indent4 fontsize10"> <num value="III">“(III) </num> <content>establish appropriate funding levels therefore;</content> </subclause> <subclause class="indent4 fontsize10"> <num value="IV">“(IV) </num> <content>review the annual budgets submitted by each applicant for the Women’s Business Center program;</content> </subclause> <subclause class="indent4 fontsize10"> <num value="V">“(V) </num> <content>select applicants to participate in the program under this section;</content> </subclause> <subclause class="indent4 fontsize10"> <num value="VI">“(VI) </num> <content>implement this section;</content> </subclause> <subclause class="indent4 fontsize10"> <num value="VII">“(VII) </num> <content>maintain a clearinghouse to provide for the dissemination and exchange of information between women’s business centers;</content> </subclause> <subclause class="indent4 fontsize10"> <num value="VIII">“(VIII) </num> <content>serve as the vice chairperson of the Interagency Committee on Women’s Business Enterprise;</content> </subclause> <subclause class="indent4 fontsize10"> <num value="IX">“(IX) </num> <content>serve as liaison for the National Women’s Business Council; and</content> </subclause> <subclause class="indent4 fontsize10"> <num value="X">“(X) </num> <content>advise the Administrator on appointments to the Women’s Business Council.</content> </subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">“(C) </num> <heading><inline class="smallCaps">Consultation requirements</inline>.—</heading> <content>In carrying out the responsibilities and duties described in this paragraph, the Assistant Administrator shall confer with and seek the advice of the Administration officials in areas served by the women’s business centers.</content> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">“(h) </num> <heading><inline class="smallCaps">Program Examination</inline>.—</heading> <paragraph class="indent1 fontsize10"> <num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading> <content>Not later than 180 days after the date of enactment of the Small Business Reauthorization Act of 1997, the Administrator shall develop and implement an annual programmatic and financial examination of each women’s business center established pursuant to this section.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">“(2) </num> <heading><inline class="smallCaps">Extension of contracts</inline>.—</heading> <content>In extending or renewing a contract with a women’s business center, the Administrator <page identifier="/us/stat/111/2615">111 STAT. 2615</page>shall consider the results of the examination conducted under paragraph (1).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="i">“(i) </num> <heading><inline class="smallCaps">Contract authority</inline>.—</heading> <content>The authority of the Administrator to enter into contracts shall be in effect for each fiscal year only to the extent and in the amounts as are provided in advance in appropriations Acts. After the Administrator has entered into a contract, either as a grant or a cooperative agreement, with any applicant under this section, it shall not suspend, terminate, or fail to renew or extend any such contract unless the Administrator provides the applicant with written notification setting forth the reasons therefore and affords the applicant an opportunity for a hearing, appeal, or other administrative proceeding under chapter 5 of title 5, United States Code.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="j">“(j) </num> <heading><inline class="smallCaps">Report</inline>.—</heading> <chapeau>The Administrator shall prepare and submit an annual report to the Committees on Small Business of the House of Representatives and the Senate on the effectiveness of all projects conducted under the authority of this section. Such report shall provide information concerning—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">“(1) </num> <content>the number of individuals receiving assistance;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">“(2) </num> <content>the number of startup business concerns formed;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">“(3) </num> <content>the gross receipts of assisted concerns;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="4">“(4) </num> <content>increases or decreases in profits of assisted concerns; and</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="5">“(5) </num> <content>the employment increases or decreases of assisted concerns.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="k">“(k) </num> <heading><inline class="smallCaps">Authorization of Appropriations</inline>.—</heading> <paragraph class="indent1 fontsize10"> <num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading> <content>There is authorized to be appropriated $8,000,000 for each fiscal year to carry out the projects authorized under this section, of which, for fiscal year 1998, not more than 5 percent may be used for administrative expenses related to the program under this section.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">“(2) </num> <heading><inline class="smallCaps">Use of amounts.</inline>—</heading> <content>Amounts made available under this subsection for fiscal year 1999, and each fiscal year thereafter, may only be used for grant awards and may not be used for costs incurred by the Administration in connection with the management and administration of the program under this section.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">“(3) </num> <heading><inline class="smallCaps">Expedited acquisition</inline>.—</heading> <content>Notwithstanding any other provision of law, the Administrator, acting through the Assistant Administrator, may use such expedited acquisition methods as the Administrator determines to be appropriate to carry out this section, except that the Administrator shall ensure that all small business sources are provided a reasonable opportunity to submit proposals.”.</content> </paragraph> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <heading><inline class="smallCaps">Applicability</inline>.—<sidenote><p class="firstIndent1 fontsize8"><ref href="/us/usc/t15/s656">15 USC 656 note.</ref></p></sidenote></heading> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading> <content>Subject to paragraph (2), any organization conducting a 3-year project under section 29 of the Small Business Act (15 U.S.C. 656) (as in effect on the day before the effective date of this Act) on September 30, 1997, may request an extension of the term of that project to a total term of 5 years. If such an extension is made, the organization shall receive financial assistance in accordance with section 29(c) of the Small Business Act (as amended by this section) subject to procedures established by the Administrator, in coordination with the Assistant Administrator of the Office of Women’s Business Ownership established under section 29 of the Small Business Act (15 U.S.C. 656) (as amended by this section).</content> </paragraph> <page identifier="/us/stat/111/2616">111 STAT. 2616</page> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <heading><inline class="smallCaps">Terms of assistance for certain organizations</inline>.—</heading> <content>Any organization operating in the third year of a 3-year project under section 29 of the Small Business Act (15 U.S.C. 656) (as in effect on the day before the effective date of this Act) on September 30, 1997, may request an extension of the term of that project to a total term of 5 years. If such an extension is made, during the fourth and fifth years of the project, the organization shall receive financial assistance in accordance with section 29(c)(1)(C) of the Small Business Act (as amended by this section) subject to procedures established by the Administrator, in coordination with the Assistant Administrator of the Office of Women’s Business Ownership established under section 29 of the Small Business Act (15 U.S.C. 656) (as amended by this section).</content> </paragraph> </subsection> </section> <num value="IV">TITLE IV—</num> <heading>COMPETITIVENESS PROGRAM AND PROCUREMENT OPPORTUNITIES</heading> <subtitle> <num value="A">Subtitle A—</num> <heading>Small Business Competitiveness Program</heading> <section> <num value="401">SEC. 401. </num> <heading>PROGRAM TERM.</heading> <content>Section 711(c) of the Small Business Competitiveness Demonstration Program Act of 1988 (15 U.S.C. 644 note) is amended by striking “<quotedText>, and terminate on September 30, 1997</quotedText>”.</content> </section> <section> <num value="402">SEC. 402. </num> <heading>MONITORING AGENCY PERFORMANCE.</heading> <content>Section 712(d)(1) of the Small Business Competitiveness Demonstration Program Act of 1988 (15 U.S.C. 644 note) is amended to read as follows:<quotedContent> <paragraph class="indent1 fontsize10"> <num value="1">“(1) </num> <content>Participating agencies shall monitor the attainment of their small business participation goals on an annual basis. An annual review by each participating agency shall be completed not later than January 31 of each year, based on the data for the preceding fiscal year, from October 1 through September 30.”.</content> </paragraph> </quotedContent> </content> </section> <section> <num value="403">SEC. 403. </num> <heading>REPORTS TO CONGRESS.</heading> <chapeau>Section 716(a) of the Small Business Competitiveness Demonstration Program Act of 1988 (15 U.S.C. 644 note) is amended—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>by striking “<quotedText>1996</quotedText>” and inserting “<quotedText>2000</quotedText>”;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>by striking “<quotedText>for Federal Procurement Policy</quotedText>” and inserting “<quotedText>of the Small Business Administration</quotedText>”; and</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>by striking “<quotedText>Government Operations</quotedText>” and inserting “<quotedText>Government Reform and Oversight</quotedText>”.</content> </paragraph> </section> <section> <num value="404">SEC. 404. </num> <heading>SMALL BUSINESS PARTICIPATION IN DREDGING.</heading> <content>Section 722(a) of the Small Business Competitiveness Demonstration Program Act of 1988 (15 U.S.C. 644 note) is amended by striking “<quotedText>and terminating on September 30, 1997</quotedText>”.</content> </section> <section> <num value="405">SEC. 405. </num> <heading>TECHNICAL AMENDMENTS.</heading> <chapeau>Section 717 of the Small Business Competitiveness Demonstration Program Act of 1988 (15 U.S.C. 644 note) is amended—</chapeau> <page identifier="/us/stat/111/2617">111 STAT. 2617</page> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>by inserting “<quotedText>or North American Industrial Classification Code</quotedText>” after “standard industrial classification code” each place it appears; and</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>by inserting “<quotedText>or North American Industrial Classification Codes</quotedText>” after “standard industrial classification codes” each place it appears.</content> </paragraph> </section> </subtitle> <subtitle> <num value="B">Subtitle B—</num> <heading>Small Business Procurement Opportunities Program</heading> <section> <num value="411">SEC. 411. </num> <heading>CONTRACT BUNDLING.</heading> <content>Section 2 of the Small Business Act (15 U.S.C. 631) is amended by adding at the end the following:<quotedContent> <subsection class="indent0 fontsize10"> <num value="j">“(j) </num> <heading><inline class="smallCaps">Contract Bundling</inline>.—</heading> <chapeau>In complying with the statement of congressional policy expressed in subsection (a), relating to fostering the participation of small business concerns in the contracting opportunities of the Government, each Federal agency, to the maximum extent practicable, shall—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">“(1) </num> <content>comply with congressional intent to foster the participation of small business concerns as prime contractors, subcontractors, and suppliers;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">“(2) </num> <content>structure its contracting requirements to facilitate competition by and among small business concerns, taking all reasonable steps to eliminate obstacles to their participation; and</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">“(3) </num> <content>avoid unnecessary and unjustified bundling of contract requirements that precludes small business participation in procurements as prime contractors.”.</content> </paragraph> </subsection> </quotedContent> </content> </section> <section> <num value="412">SEC. 412. </num> <heading>DEFINITION OF CONTRACT BUNDLING.</heading> <content>Section 3 of the Small Business Act (15 U.S.C. 632) is amended by adding at the end the following:<quotedContent> <subsection class="indent0 fontsize10"> <num value="o">“(o) </num> <heading><inline class="smallCaps">Definitions of Bundling of Contract Requirements and Related Terms</inline>.—</heading> <chapeau>In this Act:</chapeau><paragraph class="indent1 fontsize10"> <num value="1">“(1) </num> <heading><inline class="smallCaps">Bundled contract</inline>.—</heading> <content>The term ‘bundled contract’ means a contract that is entered into to meet requirements that are consolidated in a bundling of contract requirements.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">“(2) </num> <heading><inline class="smallCaps">Bundling of contract requirements</inline>.—</heading> <chapeau>The term ‘bundling of contract requirements’ means consolidating 2 or more procurement requirements for goods or services previously provided or performed under separate smaller contracts into a solicitation of offers for a single contract that is likely to be unsuitable for award to a small-business concern due to—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <content>the diversity, size, or specialized nature of the elements of the performance specified;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <content>the aggregate dollar value of the anticipated award;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">“(C) </num> <content>the geographical dispersion of the contract performance sites; or</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="D">“(D) </num> <content>any combination of the factors described in subparagraphs (A), (B), and (C).</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">“(3) </num> <heading><inline class="smallCaps">Separate smaller contract</inline>.—</heading> <content>The term ‘separate smaller contract’, with respect to a bundling of contract requirements, means a contract that has been performed by 1 or more small business concerns or was suitable for award to 1 or more small business concerns.”.</content> </paragraph> </subsection> </quotedContent> </content> </section> <page identifier="/us/stat/111/2618">111 STAT. 2618</page> <section> <num value="413">SEC. 413. </num> <heading>ASSESSING PROPOSED CONTRACT BUNDLING.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading> <content>Section 15 of the Small Business Act (15 U.S.C. 644) is amended by inserting after subsection (d) the following:<quotedContent> <subsection class="indent0 fontsize10"> <num value="e">“(e) </num> <heading><inline class="smallCaps">Procurement Strategies; Contract Bundling</inline>.—</heading> <paragraph class="indent1 fontsize10"> <num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading> <content>To the maximum extent practicable, procurement strategies used by the various agencies having contracting authority shall facilitate the maximum participation of small business concerns as prime contractors, subcontractors, and suppliers.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">“(2) </num> <heading><inline class="smallCaps">Market research</inline>.—</heading> <subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading> <content>Before proceeding with an acquisition strategy that could lead to a contract containing consolidated procurement requirements, the head of an agency shall conduct market research to determine whether consolidation of the requirements is necessary and justified.</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <heading><inline class="smallCaps">Factors</inline>.—</heading> <chapeau>For purposes of subparagraph (A), consolidation of the requirements may be determined as being necessary and justified if, as compared to the benefits that would be derived from contracting to meet those requirements if not consolidated, the Federal Government would derive from the consolidation measurably substantial benefits, including any combination of benefits that, in combination, are measurably substantial. Benefits described in the preceding sentence may include the following:</chapeau><clause class="indent3 fontsize10"> <num value="i">“(i) </num> <content>Cost savings.</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">“(ii) </num> <content>Quality improvements.</content> </clause> <clause class="indent3 fontsize10"> <num value="iii">“(iii) </num> <content>Reduction in acquisition cycle times.</content> </clause> <clause class="indent3 fontsize10"> <num value="iv">“(iv) </num> <content>Better terms and conditions.</content> </clause> <clause class="indent3 fontsize10"> <num value="v">“(v) </num> <content>Any other benefits.</content> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">“(C) </num> <heading><inline class="smallCaps">Reduction of costs not determinative</inline>.—</heading> <content>The reduction of administrative or personnel costs alone shall not be a justification for bundling of contract requirements unless the cost savings are expected to be substantial in relation to the dollar value of the procurement requirements to be consolidated.</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">“(3) </num> <heading><inline class="smallCaps">Strategy specifications</inline>.—</heading> <chapeau>If the head of a contracting agency determines that a proposed procurement strategy for a procurement involves a substantial bundling of contract requirements, the proposed procurement strategy shall—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <content>identify specifically the benefits anticipated to be derived from the bundling of contract requirements;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <content>set forth an assessment of the specific impediments to participation by small business concerns as prime contractors that result from the bundling of contract requirements and specify actions designed to maximize small business participation as subcontractors (including suppliers) at various tiers under the contract or contracts that are awarded to meet the requirements; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">“(C) </num> <content>include a specific determination that the anticipated benefits of the proposed bundled contract justify its use.</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="4">“(4) </num> <heading><inline class="smallCaps">Contract teaming</inline>.—</heading> <content>In the case of a solicitation of offers for a bundled contract that is issued by the head of an agency, a small-business concern may submit an offer that provides for use of a particular team of subcontractors for <page identifier="/us/stat/111/2619">111 STAT. 2619</page>the performance of the contract. The head of the agency shall evaluate the offer in the same manner as other offers, with due consideration to the capabilities of all of the proposed subcontractors. If a small business concern teams under this paragraph, it shall not affect its status as a small business concern for any other purpose”.</content> </paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <heading><inline class="smallCaps">Administration Review</inline>.—</heading> <chapeau>Section 15(a) of the Small Business Act (15 U.S.C. 644(a)) is amended in the third sentence—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>by inserting “<quotedText>or the solicitation involves an unnecessary or unjustified bundling of contract requirements, as determined by the Administration,</quotedText>” after “discrete construction projects,”;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>by striking “<quotedText>or (4)</quotedText>” and inserting “<quotedText>(4)</quotedText>”; and</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>by inserting before the period at the end of the sentence the following: “, or (5) why the agency has determined that the bundled contract (as defined in section 3(o)) is necessary and justified”.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num> <heading><inline class="smallCaps">Responsibilities of Agency Small Business Advocates</inline>.—</heading> <chapeau>Section 15(k) of the Small Business Act (15 U.S.C. 644(k)) is amended—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>by redesignating paragraphs (5) through (9) as paragraphs (6) through (10), respectively; and</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>by inserting after paragraph (4) the following:<quotedContent> <paragraph class="indent1 fontsize10"> <num value="5">“(5) </num> <content>identify proposed solicitations that involve significant bundling of contract requirements, and work with the agency acquisition officials and the Administration to revise the procurement strategies for such proposed solicitations where appropriate to increase the probability of participation by small businesses as prime contractors, or to facilitate small business participation as subcontractors and suppliers, if a solicitation for a bundled contract is to be issued;”.</content> </paragraph> </quotedContent> </content> </paragraph> </subsection> </section> <section> <num value="414">SEC. 414. </num> <heading>REPORTING OF BUNDLED CONTRACT OPPORTUNITIES.<sidenote><p class="firstIndent1 fontsize8"><ref href="/us/usc/t41/s405">41 USC 405 note.</ref></p></sidenote></heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num> <heading><inline class="smallCaps">Data Collection Required</inline>.—</heading> <content>The Federal Procurement Data System described in section 6(d)(4)(A) of the Office of Federal Procurement Policy Act (41 U.S.C. 405(d)(4)(A)) shall be modified to collect data regarding bundling of contract requirements when the contracting officer anticipates that the resulting contract price, including all options, is expected to exceed $5,000,000. The data shall reflect a determination made by the contracting officer regarding whether a particular solicitation constitutes a contract bundling.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <heading><inline class="smallCaps">Definitions</inline>.—</heading> <content>In this section, the term “bundling of contract requirements” has the meaning given that term in section 3(o) of the Small Business Act (15 U.S.C. 632(o)) (as added by section 412 of this subtitle).</content> </subsection> </section> <section> <num value="415">SEC. 415. </num> <heading>EVALUATING SUBCONTRACT PARTICIPATION IN AWARDING CONTRACTS.</heading> <content>Section 8(d)(4) of the Small Business Act (15 U.S.C. 637(d)(4)) is amended by adding at the end the following:<quotedContent> <subparagraph class="indent2 fontsize10"> <num value="G">“(G) </num> <chapeau>The following factors shall be designated by the Federal agency as significant factors for purposes of evaluating offers for a bundled contract where the head of the agency determines that the contract offers a significant opportunity for subcontracting:</chapeau><clause class="indent3 fontsize10"> <num value="i">“(i) </num> <content>A factor that is based on the rate provided under the subcontracting plan for small business participation in the performance of the contract.</content> </clause> <page identifier="/us/stat/111/2620">111 STAT. 2620</page> <clause class="indent3 fontsize10"> <num value="ii">“(ii) </num> <content>For the evaluation of past performance of an offeror, a factor that is based on the extent to which the offeror attained applicable goals for small business participation in the performance of contracts.”.</content> </clause> </subparagraph> </quotedContent> </content> </section> <section> <num value="416">SEC. 416. </num> <heading>IMPROVED NOTICE OF SUBCONTRACTING OPPORTUNITIES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num> <heading><inline class="smallCaps">Use of the Commerce Business Daily Authorized</inline>.—</heading> <content>Section 8 of the Small Business Act (15 U.S.C. 637) is amended by adding at the end the following:<quotedContent> <subsection class="indent0 fontsize10"> <num value="k">“(k) </num> <heading><inline class="smallCaps">Notices of Subcontracting Opportunities</inline>.—</heading> <paragraph class="indent1 fontsize10"> <num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading> <chapeau>Notices of subcontracting opportunities may be submitted for publication in the Commerce Business Daily by—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <content>a business concern awarded a contract by an executive agency subject to subsection (e)(1)(C); and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <content>a business concern that is a subcontractor or supplier (at any tier) to such contractor having a subcontracting opportunity in excess of $10,000.</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">“(2) </num> <heading><inline class="smallCaps">Content of notice</inline>.—</heading> <chapeau>The notice of a subcontracting opportunity shall include—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <content>a description of the business opportunity that is comparable to the description specified in paragraphs (1), (2), (3), and (4) of subsection (f); and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <content>the due date for receipt of offers.”.</content> </subparagraph> </paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) <sidenote><p class="firstIndent1 fontsize8"><ref href="/us/usc/t15/s637">15 USC 637 note.</ref></p></sidenote></num> <heading><inline class="smallCaps">Regulations Required</inline>.—</heading> <content>The Federal Acquisition Regulation shall be amended to provide uniform implementation of the amendments made by this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading> <content>Section 8(e)(1)(C) of the Small Business Act (15 U.S.C. 637(e)(1)(C)) is amended by striking “<quotedText>$25,000</quotedText>” each place that term appears and inserting “<quotedText>$100,000</quotedText>”.</content> </subsection> </section> <section> <num value="417">SEC. 417. <sidenote><p>Publication.</p><p>15 USC 631 note.</p></sidenote></num> <heading>DEADLINES FOR ISSUANCE OF REGULATIONS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num> <heading><inline class="smallCaps">Proposed Regulations</inline>.—</heading> <content>Proposed amendments to the Federal Acquisition Regulation or proposed Small Business Administration regulations under this subtitle and the amendments made by this subtitle shall be published not later than 120 days after the date of enactment of this Act for the purpose of obtaining public comment pursuant to section 22 of the Office of Federal Procurement Policy Act (41 U.S.C. 418b), or chapter 5 of title 5, United States Code, as appropriate. The public shall be afforded not less than 60 days to submit comments.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <heading><inline class="smallCaps">Final Regulations</inline>.—</heading> <content>Final regulations shall be published not later than 270 days after the date of enactment of this Act. <sidenote><p class="firstIndent1 fontsize8">Effective date.</p></sidenote>The effective date for such final regulations shall be not less than 30 days after the date of publication.</content> </subsection> </section> </subtitle> <num value="V">TITLE V—</num> <heading>MISCELLANEOUS PROVISIONS</heading> <section> <num value="501">SEC. 501. </num> <heading>SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num> <heading><inline class="smallCaps">Required Expenditures</inline>.—</heading> <content>Section 9(n) of the Small Business Act (15 U.S.C. 638(n)) is amended by striking paragraph (1) and inserting the following:<quotedContent> <paragraph class="indent1 fontsize10"> <num value="1">“(1) </num> <heading><inline class="smallCaps">Required expenditure amounts</inline>.—</heading> <content>With respect to fiscal years 1998, 1999, 2000, and 2001, each Federal agency that has an extramural budget for research, or research and development, in excess of $1,000,000,000 for that fiscal year, is authorized to expend with small business concerns not less <page identifier="/us/stat/111/2621">111 STAT. 2621</page>than 0.15 percent of that extramural budget specifically in connection with STTR programs that meet the requirements of this section and any policy directives and regulations issued under this section.”.</content> </paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <heading><inline class="smallCaps">Reports and Outreach</inline>.—</heading> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading> <chapeau>Section 9 of the Small Business Act (15 U.S.C. 638) is amended—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <chapeau>in subsection (o)—</chapeau> <clause class="indent3 fontsize10"> <num value="i">(i) </num> <content>by redesignating paragraphs (8) through (11) as paragraphs (10) through (13), respectively; and</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">(ii) </num> <content>by inserting after paragraph (7) the following:<quotedContent> <paragraph class="indent1 fontsize10"> <num value="8">“(8) </num> <content>include, as part of its annual performance plan as required by subsections (a) and (b) of section 1115 of title 31, United States Code, a section on its STTR program, and shall submit such section to the Committee on Small Business of the Senate, and the Committee on Science and the Committee on Small Business of the House of Representatives;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="9">“(9) </num> <content>collect such data from awardees as is necessary to assess STTR program outputs and outcomes;”;</content> </paragraph> </quotedContent> </content> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>in subsection (e)(4)(A), by striking “<quotedText>(ii)</quotedText>”; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">(C) </num> <content>by adding at the end the following:<quotedContent> <subsection class="indent0 fontsize10"> <num value="s">“(s) </num> <heading><inline class="smallCaps">Outreach</inline>.—</heading> <paragraph class="indent1 fontsize10"> <num value="1">“(1) </num> <heading><inline class="smallCaps">Definition of eligible state</inline>.—</heading> <chapeau>In this subsection, the term ‘eligible State’ means a State—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <content>if the total value of contracts awarded to the State during fiscal year 1995 under this section was less than $5,000,000; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <content>that certifies to the Administration described in paragraph (2) that the State will, upon receipt of assistance under this subsection, provide matching funds from non- Federal sources in an amount that is not less than 50 percent of the amount provided under this subsection.</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">“(2) </num> <heading><inline class="smallCaps">Program authority</inline>.—</heading> <content>Of amounts made available to carry out this section for fiscal year 1998, 1999, 2000, or 2001 the Administrator may expend with eligible States not more than $2,000,000 in each such fiscal year in order to increase the participation of small business concerns located in those States in the programs under this section.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">“(3) </num> <heading><inline class="smallCaps">Amount of assistance</inline>.—</heading> <chapeau>The amount of assistance provided to an eligible State under this subsection in any fiscal year—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <content>shall be equal to twice the total amount of matching funds from non-Federal sources provided by the State; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <content>shall not exceed $100,000.</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="4">“(4) </num> <heading><inline class="smallCaps">Use of assistance</inline>.—</heading> <chapeau>Assistance provided to an eligible State under this subsection shall be used by the State, in consultation with State and local departments and agencies, for programs and activities to increase the participation of small business concerns located in the State in the programs under this section, including—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <chapeau>the establishment of quantifiable performance goals, including goals relating to—</chapeau> <clause class="indent3 fontsize10"> <num value="i">“(i) </num> <content>the number of program awards under this section made to small business concerns in the State; and</content> </clause> <page identifier="/us/stat/111/2622">111 STAT. 2622</page> <clause class="indent3 fontsize10"> <num value="ii">“(ii) </num> <content>the total amount of Federal research and development contracts awarded to small business concerns in the State;</content> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <content>the provision of competition outreach support to small business concerns in the State that are involved in research and development; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">“(C) </num> <content>the development and dissemination of educational and promotional information relating to the programs under this section to small business concerns in the State.</content> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="t">“(t) </num> <heading><inline class="smallCaps">Inclusion in Strategic Plans</inline>.—</heading> <content>Program information relating to the SBIR and STTR programs shall be included by each Federal agency in any update or revision required of the Federal agency under section 306(b) of title 5, United States Code.”.</content> </subsection> </quotedContent> </content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) <sidenote><p class="firstIndent1 fontsize8">Effective date.</p></sidenote></num> <heading><inline class="smallCaps">Repeal</inline>.—</heading> <content>Effective October 1, 2001, section 9(s) of the Small Business Act (as added by paragraph (1) of this subsection) is repealed.</content> </paragraph> </subsection> </section> <section> <num value="502">SEC. 502. </num> <heading>SMALL BUSINESS DEVELOPMENT CENTERS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading> <chapeau>Section 21(a) of the Small Business Act (15 U.S.C. 648(a)) is amended—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <chapeau>in paragraph (1)—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>by inserting “<quotedText>any women’s business center operating pursuant to section 29,</quotedText>” after “credit or finance corporation,”;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>by inserting “<quotedText>or a women’s business center operating pursuant to section 29</quotedText>” after “other than an institution of higher education”; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">(C) </num> <content>by inserting “<quotedText>and women’s business centers operating pursuant to section 29</quotedText>” after “utilize institutions of higher education”;</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <chapeau>in paragraph (3)—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>by striking “<quotedText>, but with</quotedText>” and all that follows through “parties.” and inserting the following: “for the delivery of programs and services to the small business community. Such programs and services shall be jointly developed, negotiated, and agreed upon, with full participation of both parties, pursuant to an executed cooperative agreement between the Small Business Development Center applicant and the Administration.”; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>by adding at the end the following:<quotedContent> <subparagraph class="indent2 fontsize10"> <num value="C">“(C) </num> <content>On an annual basis, the Small Business Development Center shall review and coordinate public and private partnerships and cosponsorships with the Administration for the purpose of more efficiently leveraging available resources on a National and a State basis.”;</content> </subparagraph> </quotedContent> </content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <chapeau>in paragraph (4)(C)—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>by striking clause (i) and inserting the following:<quotedContent> <clause class="indent3 fontsize10"> <num value="i">“(i) </num> <heading>In general.—</heading> <subclause class="indent4 fontsize10"> <num value="I">“(I) </num> <heading><inline class="smallCaps">Grant amount</inline>.—</heading> <chapeau>Subject to subclauses (II) and (III), the amount of a grant received by a State under this section shall be equal to the greater of $500,000, or the sum of —</chapeau> <item class="indent5 fontsize10"> <num value="aa">“(aa) </num> <content>the State’s pro rata share of the national program, based upon the population of the State as compared to the total population of the United States; and</content> </item> <page identifier="/us/stat/111/2623">111 STAT. 2623</page> <item class="indent5 fontsize10"> <num value="bb">“(bb) </num> <content>$300,000 in fiscal year 1998, $400,000 in fiscal year 1999, and $500,000 in each fiscal year thereafter.</content> </item> </subclause> <subclause class="indent4 fontsize10"> <num value="II">“(II) </num> <heading><inline class="smallCaps">Pro rata reductions</inline>.—</heading> <content>If the amount made available to carry out this section for any fiscal year is insufficient to carry out subclause (I)(bb), the Administration shall make pro rata reductions in the amounts otherwise payable to States under subclause (I)(bb).</content> </subclause> <subclause class="indent4 fontsize10"> <num value="III">“(III) </num> <heading><inline class="smallCaps">Matching requirement</inline>.—</heading> <content>The amount of a grant received by a State under this section shall not exceed the amount of matching funds from sources other than the Federal Government provided by the State under subparagraph (A).”; and</content> </subclause> </clause> </quotedContent> </content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>in clause (iii), by striking “<quotedText>(iii)</quotedText>” and all that follows through “1997.” and inserting the following:<quotedContent> <clause class="indent3 fontsize10"> <num value="iii">“(iii) </num> <heading><inline class="smallCaps">National program</inline>.—</heading> <chapeau>There are authorized to be appropriated to carry out the national program under this section—</chapeau> <subclause class="indent4 fontsize10"> <num value="I">“(I) </num> <content>$85,000,000 for fiscal year 1998;</content> </subclause> <subclause class="indent4 fontsize10"> <num value="II">“(II) </num> <content>$90,000,000 for fiscal year 1999; and</content> </subclause> <subclause class="indent4 fontsize10"> <num value="III">“(III) </num> <content>$95,000,000 for fiscal year 2000 and each fiscal year thereafter.”; and</content> </subclause> </clause> </quotedContent> </content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="4">(4) </num> <chapeau>in paragraph (6)—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>in subparagraph (A), by striking “<quotedText>and</quotedText>” at the end;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>in subparagraph (B), by striking the comma at the end and inserting “<quotedText>; and</quotedText>”; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">(C) </num> <content>inserting after subparagraph (B) the following:<quotedContent> <subparagraph class="indent2 fontsize10"> <num value="C">“(C) </num> <content>with outreach, development, and enhancement of minority-owned small business startups or expansions, HUBZone small business concerns, veteran-owned small business startups or expansions, and women-owned small business startups or expansions, in communities impacted by base closings or military or corporate downsizing, or in rural or underserved communities;”.</content> </subparagraph> </quotedContent> </content> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <heading><inline class="smallCaps">SBDC Services</inline>.—</heading> <chapeau>Section 21(c) of the Small Business Act (15 U.S.C. 648(c)) is amended—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <chapeau>in paragraph (3)—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <chapeau>in subparagraph (A), by striking “<quotedText>businesses;</quotedText>” and inserting “businesses, including—</chapeau> <clause class="indent3 fontsize10"> <num value="i">“(i) </num> <content>working with individuals to increase awareness of basic credit practices and credit requirements;</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">“(ii) </num> <content>working with individuals to develop business plans, financial packages, credit applications, and contract proposals;</content> </clause> <clause class="indent3 fontsize10"> <num value="iii">“(iii) </num> <content>working with the Administration to develop and provide informational tools for use in working with individuals on pre-business startup planning, existing business expansion, and export planning; and</content> </clause> <clause class="indent3 fontsize10"> <num value="v">“(v) </num> <content>working with individuals referred by the local offices of the Administration and Administration participating lenders;”;</content> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>in each of subparagraphs (B), (C), (D), (E), (F), (G), (M), (N), (O), (Q), and (R) by moving each margin 2 ems to the left; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">(C) </num> <content>in subparagraph (C), by inserting “<quotedText>and the Administration</quotedText>” after “Center”;</content> </subparagraph> <page identifier="/us/stat/111/2624">111 STAT. 2624</page> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <chapeau>in paragraph (5)—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>by moving the margin 2 ems to the right;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>by striking “<quotedText>paragraph (a)(1)</quotedText>” and inserting “<quotedText>subsection (a)(1)</quotedText>”;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">(C) </num> <content>by striking “<quotedText>which ever</quotedText>” and inserting “<quotedText>whichever</quotedText>”; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="D">(D) </num> <content>by striking “<quotedText>last,,</quotedText>” and inserting “<quotedText>last,</quotedText>”;</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>by redesignating paragraphs (4) through (7) as paragraphs (5) through (8), respectively; and</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="4">(4) </num> <content>in paragraph (3), in the undesignated material following subparagraph (R), by striking “<quotedText>A small</quotedText>” and inserting the following:<quotedContent> <paragraph class="indent1 fontsize10"> <num value="4">“(4) </num> <content>A small”.</content> </paragraph> </quotedContent> </content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num> <heading><inline class="smallCaps">Competitive Awards</inline>.—</heading> <content>Section 21(1) of the Small Business Act (15 U.S.C. 648(1)) is amended by adding at the end the following: “<content>If any contract or cooperative agreement under this section with an entity that is covered by this section is not renewed or extended, any award of a successor contract or cooperative agreement under this section to another entity shall be made on a competitive basis.</content>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num> <heading><inline class="smallCaps">Prohibition on Certain Fees</inline>.—</heading> <content>Section 21 of the Small Business Act (15 U.S.C. 648) is amended by adding at the end the following:<quotedContent> <subsection class="indent0 fontsize10"> <num value="m">“(m) </num> <heading><inline class="smallCaps">Prohibition on Certain Fees</inline>.—</heading> <content>A small business development center shall not impose or otherwise collect a fee or other compensation in connection with the provision of counseling services under this section.”.</content> </subsection> </quotedContent> </content> </subsection> </section> <section> <num value="503">SEC. 503. </num> <heading>PILOT PREFERRED SURETY BOND GUARANTEE PROGRAM EXTENSION.</heading> <content>Section 207 of the Small Business Administration Reauthorization and Amendment Act of 1988 (15 U.S.C. 694b note) is amended by striking “<quotedText>September 30, 1997</quotedText>” and inserting “<quotedText>September 30, 2000</quotedText>”.</content> </section> <section> <num value="504">SEC. 504. </num> <heading>EXTENSION OF COSPONSORSHIP AUTHORITY.</heading> <content>Section 401(a)(2) of the Small Business Administration Reauthorization and Amendments Act of 1994 (15 U.S.C. 637 note) is amended by striking “<quotedText>September 30, 1997</quotedText>” and inserting “<quotedText>September 30, 2000</quotedText>”.</content> </section> <section> <num value="505">SEC. 505. <sidenote><p class="firstIndent1 fontsize8"><ref href="/us/usc/t15/s634">15 USC 634 note.</ref></p></sidenote></num> <heading>ASSET SALES.</heading> <content>In connection with the Administration’s implementation of a program to sell to the private sector loans and other assets held by the Administration, the Administration shall provide to the Committees a copy of the draft and final plans describing the sale and the anticipated benefits resulting from such sale.</content> </section> <section> <num value="506">SEC. 506. </num> <heading>SMALL BUSINESS EXPORT PROMOTION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading> <chapeau>Section 21(c)(3) of the Small Business Act (15 U.S.C. 648(c)(3)) is amended—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>in subparagraph (Q), by striking “<quotedText>and</quotedText>” at the end;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>in subparagraph (R), by striking the period at the end and inserting “<quotedText>; and</quotedText>”; and</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>by inserting after subparagraph (R) the following:<quotedContent> <subparagraph class="indent2 fontsize10"> <num value="S">“(S) </num> <content>providing small business owners with access to a wide variety of export-related information by establishing on-line computer linkages between small business development centers <page identifier="/us/stat/111/2625">111 STAT. 2625</page>and an international trade data information network with ties to the Export Assistance Center program.”.</content> </subparagraph> </quotedContent> </content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <heading><inline class="smallCaps">Authorization of Appropriations</inline>.—</heading> <content>There is authorized to be appropriated to carry out section 21(c)(3)(S) of the Small Business Act (15 U.S.C. 648(c)(3)(S)), as added by this section, $1,500,000 for each fiscal years 1998 and 1999.</content> </subsection> </section> <section> <num value="507">SEC. 507. </num> <heading>DEFENSE LOAN AND TECHNICAL ASSISTANCE PROGRAM.<sidenote><p class="firstIndent1 fontsize8"><ref href="/us/usc/t15/s636">15 USC 636 note.</ref></p></sidenote></heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num> <heading><inline class="smallCaps">DELTA Program Authorized.—</inline></heading> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading> <content>The Administrator may administer the Defense Loan and Technical Assistance program in accordance with the authority and requirements of this section.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <heading><inline class="smallCaps">Expiration of authority</inline>.—</heading> <content>The authority of the Administrator to carry out the DELTA program under paragraph (1) shall terminate when the funds referred to in subsection (g)(1) have been expended.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <heading><inline class="smallCaps">DELTA program defined</inline>.—</heading> <content>In this section, the terms “Defense Loan and Technical Assistance program” and “DELTA program” mean the Defense Loan and Technical Assistance program that has been established by a memorandum of understanding entered into by the Administrator and the Secretary of Defense on June 26, 1995.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <heading><inline class="smallCaps">Assistance</inline>.—</heading> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <heading><inline class="smallCaps">Authority</inline>.—</heading> <content>Under the DELTA program, the Administrator may assist small business concerns that are economically dependent on defense expenditures to acquire dual-use capabilities.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <heading><inline class="smallCaps">Forms of assistance</inline>.—</heading> <chapeau>Forms of assistance authorized under paragraph (1) are as follows:</chapeau><subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <heading><inline class="smallCaps">Loan guarantees</inline>.—</heading> <content>Loan guarantees under the terms and conditions specified under this section and other applicable law.</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <heading><inline class="smallCaps">Nonfinancial assistance</inline>.—</heading> <content>Other forms of assistance that are not financial.</content> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num> <heading><inline class="smallCaps">Administration of Program</inline>.—</heading> <chapeau>In the administration of the DELTA program under this section, the Administrator shall—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>process applications for DELTA program loan guarantees;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>guarantee repayment of the resulting loans in accordance with this section; and</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>take such other actions as are necessary to administer the program.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num> <heading><inline class="smallCaps">Selection and Eligibility Requirements for DELTA Loan Guarantees</inline>.—</heading> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading> <content>The selection criteria and eligibility requirements set forth in this subsection shall be applied in the selection of small business concerns to receive loan guarantees under the DELTA program.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <heading><inline class="smallCaps">Selection criteria</inline>.—</heading> <chapeau>The criteria used for the selection of a small business concern to receive a loan guarantee under this section are as follows:</chapeau><subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>The selection criteria established under the memorandum of understanding referred to in subsection (a)(3).</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>The extent to which the loans to be guaranteed would support the retention of defense workers whose employment would otherwise be permanently or temporarily terminated as a result of reductions in expenditures <page identifier="/us/stat/111/2626">111 STAT. 2626</page>by the United States for defense, the termination or cancellation of a defense contract, the failure to proceed with an approved major weapon system, the merger or consolidation of the operations of a defense contractor, or the closure or realignment of a military installation.</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">(C) </num> <content>The extent to which the loans to be guaranteed would stimulate job creation and new economic activities in communities most adversely affected by reductions in expenditures by the United States for defense, the termination or cancellation of a defense contract, the failure to proceed with an approved major weapon system, the merger or consolidation of the operations of a defense contractor, or the closure or realignment of a military installation.</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="D">(D) </num> <content>The extent to which the loans to be guaranteed would be used to acquire (or permit the use of other funds to acquire) capital equipment to modernize or expand the facilities of the borrower to enable the borrower to remain in the national technology and industrial base available to the Department of Defense.</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <heading><inline class="smallCaps">Eligibility requirements</inline>.—</heading> <chapeau>To be eligible for a loan guarantee under the DELTA program, a borrower must demonstrate to the satisfaction of the Administrator that, during any 1 of the 5 preceding operating years of the borrower, not less than 25 percent of the value of the borrower’s sales were derived from—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>contracts with the Department of Defense or the defense-related activities of the Department of Energy; or</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>subcontracts in support of defense-related prime contracts.</content> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num> <heading><inline class="smallCaps">Maximum Amount of Loan Principal</inline>.—</heading> <content>With respect to each borrower, the maximum amount of loan principal for which the Administrator may provide a guarantee under this section during a fiscal year may not exceed $1,250,000.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num> <heading><inline class="smallCaps">Loan Guaranty Rate</inline>.—</heading> <content>The maximum allowable guarantee percentage for loans guaranteed under this section may not exceed 80 percent.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num> <heading><inline class="smallCaps">Funding</inline>.—</heading> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading> <content>The funds that have been made available for loan guarantees under the DELTA program and have been transferred from the Department of Defense to the Small Business Administration before the date of the enactment of this Act shall be used for carrying out the DELTA program under this section.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <heading><inline class="smallCaps">Continued availability of existing funds</inline>.—</heading> <chapeau>The funds made available under the second proviso under the heading “Research, Development, Test and Evaluation, Defense-Wide” in Public Law 103–335 (108 Stat. 2613) shall be available until expended—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>to cover the costs (as defined in section 502(5) of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5))) of loan guarantees issued under this section; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>to cover the reasonable costs of the administration of the loan guarantees.</content> </subparagraph> </paragraph> </subsection> </section> <page identifier="/us/stat/111/2627">111 STAT. 2627</page> <section> <num value="508">SEC. 508. </num> <heading>VERY SMALL BUSINESS CONCERNS.</heading> <content>Section 304(i) of the Small Business Administration Reauthorization and Amendments Act of 1994 (15 U.S.C. 644 note) is amended by striking “<quotedText>September 30, 1998</quotedText>” and inserting “<quotedText>September 30, 2000</quotedText>”.</content> </section> <section> <num value="509">SEC. 509. </num> <heading>TRADE ASSISTANCE PROGRAM FOR SMALL BUSINESS CONCERNS ADVERSELY AFFECTED BY NAFTA.<sidenote><p class="firstIndent1 fontsize8"><ref href="/us/usc/t15/s636">15 USC 636 note.</ref></p></sidenote></heading> <content>The Administrator shall coordinate Federal assistance in order to provide counseling to small business concerns adversely affected by the North American Free Trade Agreement.</content> </section> <num value="VI">TITLE VI—</num> <heading>HUBZONE PROGRAM<sidenote><p class="firstIndent1 fontsize8">HUBZone Act of 1997.</p></sidenote></heading> <section> <num value="601">SEC. 601. </num> <heading>SHORT TITLE.<sidenote><p class="firstIndent1 fontsize8"><ref href="/us/usc/t15/s631">15 USC 631 note.</ref></p></sidenote></heading> <content>This title may be cited as the “HUBZone Act of 1997”.</content> </section> <section> <num value="602">SEC. 602. </num> <heading>HISTORICALLY UNDERUTILIZED BUSINESS ZONES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num> <heading><inline class="smallCaps">Definitions</inline>.—</heading> <content>Section 3 of the Small Business Act (15 U.S.C. 632) (as amended by section 412 of this Act) is amended by adding at the end the following:<quotedContent> <subsection class="indent0 fontsize10"> <num value="p">“(p) </num> <heading><inline class="smallCaps">Definitions Relating to HUBZones</inline>.—</heading> <chapeau>In this Act:</chapeau><paragraph class="indent1 fontsize10"> <num value="1">“(1) </num> <heading><inline class="smallCaps">Historically underutilized business zone</inline>.—</heading> <chapeau>The term “historically underutilized business zone’ means any area located within 1 or more—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <content>qualified census tracts;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <content>qualified nonmetropolitan counties; or</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">“(C) </num> <content>lands within the external boundaries of an Indian reservation.</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">“(2) </num> <heading><inline class="smallCaps">HUBZone</inline>.—</heading> <content>The term ‘HUBZone’ means a historically underutilized business zone.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">“(3) </num> <heading><inline class="smallCaps">HUBZone small business concern</inline>.—</heading> <chapeau>The term ‘HUBZone small business concern’ means a small business concern—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <content>that is owned and controlled by 1 or more persons, each of whom is a United States citizen; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <content>the principal office of which is located in a HUBZone; or</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="4">“(4) </num> <heading><inline class="smallCaps">Qualified areas</inline>.—</heading> <subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <heading><inline class="smallCaps">Qualified census tract</inline>.—</heading> <content>The term ‘qualified census tract’ has the meaning given that term in section 42(d)(5)(C)(ii)(I) of the Internal Revenue Code of 1986.</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <heading><inline class="smallCaps">Qualified nonmetropolitan county</inline>.—</heading> <chapeau>The term ‘qualified nonmetropolitan county’ means any county—</chapeau> <clause class="indent3 fontsize10"> <num value="i">“(i) </num> <chapeau>that, based on the most recent data available from the Bureau of the Census of the Department of Commerce—</chapeau> <subclause class="indent4 fontsize10"> <num value="I">“(I) </num> <content>is not located in a metropolitan statistical area (as defined in section 143(k)(2)(B) of the Internal Revenue Code of 1986); and</content> </subclause> <subclause class="indent4 fontsize10"> <num value="II">“(II) </num> <content>in which the median household income is less than 80 percent of the nonmetropolitan State median household income; or</content> </subclause> </clause> <clause class="indent3 fontsize10"> <num value="ii">“(ii) </num> <content>that, based on the most recent data available from the Secretary of Labor, has an unemployment rate that is not less than 140 percent of the statewide <page identifier="/us/stat/111/2628">111 STAT. 2628</page>average unemployment rate for the State in which the county is located.</content> </clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="5">“(5) </num> <heading><inline class="smallCaps">Qualified hubzone small business concern</inline>.—</heading> <subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading> <chapeau>A HUBZone small business concern is ‘qualified’, if—</chapeau> <clause class="indent3 fontsize10"> <num value="i">“(i) </num> <chapeau>the small business concern has certified in writing to the Administrator (or the Administrator otherwise determines, based on information submitted to the Administrator by the small business concern, or based on certification procedures, which shall be established by the Administration by regulation) that—</chapeau> <subclause class="indent4 fontsize10"> <num value="I">“(I) </num> <content>it is a HUBZone small business concern;</content> </subclause> <subclause class="indent4 fontsize10"> <num value="II">“(II) </num> <content>not less than 35 percent of the employees of the small business concern reside in a HUBZone, and the small business concern will attempt to maintain this employment percentage during the performance of any contract awarded to the small business concern on the basis of a preference provided under section 31(b); and</content> </subclause> <subclause class="indent4 fontsize10"> <num value="III">“(III) </num> <chapeau>with respect to any subcontract entered into by the small business concern pursuant to a contract awarded to the small business concern under section 31, the small business concern will ensure that—</chapeau> <item class="indent5 fontsize10"> <num value="aa">“(aa) </num> <content>in the case of a contract for services (except construction), not less than 50 percent of the cost of contract performance incurred for personnel will be expended for its employees or for employees of other HUBZone small business concerns; and</content> </item> <item class="indent5 fontsize10"> <num value="bb">“(bb) </num> <content>in the case of a contract for procurement of supplies (other than procurement from a regular dealer in such supplies), not less than 50 percent of the cost of manufacturing the supplies (not including the cost of materials) will be incurred in connection with the performance of the contract in a HUBZone by 1 or more HUBZone small business concerns; and</content> </item> </subclause> </clause> <clause class="indent3 fontsize10"> <num value="ii">“(ii) </num> <chapeau>no certification made or information provided by the small business concern under clause (i) has been, in accordance with the procedures established under section 31(c)(1)—</chapeau> <subclause class="indent4 fontsize10"> <num value="I">“(I) </num> <content>successfully challenged by an interested party; or</content> </subclause> <subclause class="indent4 fontsize10"> <num value="II">“(II) </num> <content>otherwise determined by the Administrator to be materially false.</content> </subclause> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <heading><inline class="smallCaps">Change in percentages.</inline>—</heading> <content>The Administrator may utilize a percentage other than the percentage specified in item (aa) or (bb) of subparagraph (A)(i)(III), if the Administrator determines that such action is necessary to reflect conventional industry practices among small business concerns that are below the numerical size standard for businesses in that industry category.</content> </subparagraph> <sidenote><p class="firstIndent1 fontsize8">Regulations.</p></sidenote> <subparagraph class="indent2 fontsize10"> <num value="C">“(C) </num> <heading><inline class="smallCaps">Construction and other contracts</inline>.—</heading> <content>The Administrator shall promulgate final regulations imposing <page identifier="/us/stat/111/2629">111 STAT. 2629</page>requirements that are similar to those specified in subclauses (IV) and (V) of subparagraph (A)(i) on contracts for general and specialty construction, and on contracts for any other industry category that would not otherwise be subject to those requirements. The percentage applicable to any such requirement shall be determined in accordance with subparagraph (B).</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="D">“(D) </num> <heading><inline class="smallCaps">List of qualified small business concerns</inline>.—</heading> <chapeau>The Administrator shall establish and maintain a list of qualified HUBZone small business concerns, which list shall, to the extent practicable—</chapeau> <clause class="indent3 fontsize10"> <num value="i">“(i) </num> <content>include the name, address, and type of business with respect to each such small business concern;</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">“(ii) </num> <content>be updated by the Administrator not less than annually; and</content> </clause> <clause class="indent3 fontsize10"> <num value="iii">“(iii) </num> <content>be provided upon request to any Federal agency or other entity.”.</content> </clause> </subparagraph> </paragraph> </subsection> </quotedContent> </content> </subsection> <subparagraph class="indent2 fontsize10"> <num value="b">(b) </num> <heading><inline class="smallCaps">Federal Contracting</inline>.—</heading> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading> <chapeau>The Small Business Act (15 U.S.C. 631 et seq.) is amended—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>by redesignating section 31 as section 32; <sidenote><p class="firstIndent1 fontsize8"><ref href="/us/usc/t15/s631">15 USC 631 note.</ref></p></sidenote>and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>by inserting after section 30 the following:<quotedContent> <section> <num value="31">“SEC. 31. <sidenote><p class="firstIndent1 fontsize8"><ref href="/us/usc/t15/s657a.">15 USC 657a.</ref></p></sidenote></num> <heading>HUBZONE PROGRAM.</heading> <subsection class="indent0 fontsize10"> <num value="a">“(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading> <content>There is established within the Administration a program to be carried out by the Administrator to provide for Federal contracting assistance to qualified HUBZone small business concerns in accordance with this section.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num> <heading><inline class="smallCaps">Eligible Contracts</inline>.—</heading> <paragraph class="indent1 fontsize10"> <num value="1">“(1) </num> <heading><inline class="smallCaps">Definitions</inline>.—</heading> <chapeau>In this subsection—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <content>the term ‘contracting officer’ has the meaning given that term in section 27(f)(5) of the Office of Federal Procurement Policy Act (41 U.S.C. 423(f)(5)); and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <content>the term ‘full and open competition’ has the meaning given that term in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403).</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">“(2) </num> <heading><inline class="smallCaps">Authority of contracting officer</inline>.—</heading> <chapeau>Notwithstanding any other provision of law—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <chapeau>a contracting officer may award sole source contracts under this section to any qualified HUBZone small business concern, if—</chapeau> <clause class="indent3 fontsize10"> <num value="i">“(i) </num> <content>the qualified HUBZone small business concern is determined to be a responsible contractor with respect to performance of such contract opportunity, and the contracting officer does not have a reasonable expectation that 2 or more qualified HUBZone small business concerns will submit offers for the contracting opportunity;</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">“(ii) </num> <chapeau>the anticipated award price of the contract (including options) will not exceed—</chapeau> <subclause class="indent4 fontsize10"> <num value="I">“(I) </num> <content>$5,000,000, in the case of a contract opportunity assigned a standard industrial classification code for manufacturing; or</content> </subclause> <subclause class="indent4 fontsize10"> <num value="II">“(II) </num> <content>$3,000,000, in the case of all other contract opportunities; and</content> </subclause> <page identifier="/us/stat/111/2630">111 STAT. 2630</page> </clause> <clause class="indent3 fontsize10"> <num value="iii">“(iii) </num> <content>in the estimation of the contracting officer, the contract award can be made at a fair and reasonable price;</content> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <content>a contract opportunity shall be awarded pursuant to this section on the basis of competition restricted to qualified HUBZone small business concerns if the contracting officer has a reasonable expectation that not less than 2 qualified HUBZone small business concerns will submit offers and that the award can be made at a fair market price; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">“(C) </num> <content>not later than 5 days from the date the Administration is notified of a procurement officer’s decision not to award a contract opportunity under this section to a qualified HUBZone small business concern, the Administrator may notify the contracting officer of the intent to appeal the contracting officer’s decision, and within 15 days of such date the Administrator may file a written request for reconsideration of the contracting officer’s decision with the Secretary of the department or agency head.</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">“(3) </num> <heading><inline class="smallCaps">Price evaluation preference in full and open competitions</inline>.—</heading> <content>In any case in which a contract is to be awarded on the basis of full and open competition, the price offered by a qualified HUBZone small business concern shall be deemed as being lower than the price offered by another offeror (other than another small business concern), if the price offered by the qualified HUBZone small business concern is not more than 10 percent higher than the price offered by the otherwise lowest, responsive, and responsible offeror.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="4">“(4) </num> <heading><inline class="smallCaps">Relationship to other contracting preferences</inline>.—</heading> <content>A procurement may not be made from a source on the basis of a preference provided in paragraph (2) or (3), if the procurement would otherwise be made from a different source under section 4124 or 4125 of title 18, United States Code, or the Javits-Wagner-O’Day Act (41 U.S.C. 46 et seq.).</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">“(c) </num> <heading><inline class="smallCaps">Enforcement; Penalties</inline>.—</heading> <paragraph class="indent1 fontsize10"> <num value="1">“(1) <sidenote><p class="firstIndent1 fontsize8">Regulations.</p></sidenote></num> <heading><inline class="smallCaps">Verification of eligibility</inline>.—</heading> <chapeau>In carrying out this section, the Administrator shall establish procedures relating to—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <content>the filing, investigation, and disposition by the Administration of any challenge to the eligibility of a small business concern to receive assistance under this section (including a challenge, filed by an interested party, relating to the veracity of a certification made or information provided to the Administration by a small business concern under section 3(p)(5)); and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <content>verification by the Administrator of the accuracy of any certification made or information provided to the Administration by a small business concern under section 3(p)(5).</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">“(2) </num> <heading><inline class="smallCaps">Examinations</inline>.—</heading> <content>The procedures established under paragraph (1) may provide for program examinations (including random program examinations) by the Administrator of any small business concern making a certification or providing information to the Administrator under section 3(p)(5).</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">“(3) </num> <heading><inline class="smallCaps">Provision of data</inline>.—</heading> <content>Upon the request of the Administrator, the Secretary of Labor, the Secretary of Housing and Urban Development, and the Secretary of the Interior (or the <page identifier="/us/stat/111/2631">111 STAT. 2631</page>Assistant Secretary for Indian Affairs), shall promptly provide to the Administrator such information as the Administrator determines to be necessary to carry out this subsection.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="4">“(4) </num> <heading><inline class="smallCaps">Penalties</inline>.—</heading> <chapeau>In addition to the penalties described in section 16(d), any small business concern that is determined by the Administrator to have misrepresented the status of that concern as a ‘HUBZone small business concern’ for purposes of this section, shall be subject to—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">“(A) </num> <content>section 1001 of title 18, United States Code; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">“(B) </num> <content>sections 3729 through 3733 of title 31, United States Code.”.</content> </subparagraph> </paragraph> </subsection> </section> </quotedContent> </content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <heading><inline class="smallCaps">Initial limited applicability</inline>.—</heading> <chapeau>During the period <sidenote><p class="firstIndent1 fontsize8"><ref href="/us/usc/t15/s657a">15 USC 657a note.</ref></p></sidenote> beginning on the date of enactment of this Act and ending on September 30, 2000, section 31 of the Small Business Act (as added by paragraph (1) of this subsection) shall apply only to procurements by—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>the Department of Defense;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>the Department of Agriculture;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">(C) </num> <content>the Department of Health and Human Services;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="D">(D) </num> <content>the Department of Transportation;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="E">(E) </num> <content>the Department of Energy;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="F">(F) </num> <content>the Department of Housing and Urban Development;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="G">(G) </num> <content>the Environmental Protection Agency;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="H">(H) </num> <content>the National Aeronautics and Space Administration;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="I">(I) </num> <content>the General Services Administration; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="J">(J) </num> <content>the Department of Veterans Affairs.</content> </subparagraph> </paragraph> </subparagraph> </section> <section> <num value="603">SEC. 603. </num> <heading>TECHNICAL AND CONFORMING AMENDMENTS TO THE SMALL BUSINESS ACT.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num> <heading><inline class="smallCaps">Performance of Contracts</inline>.—</heading> <chapeau>Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) is amended—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <chapeau>in paragraph (1)—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>in the first sentence, by striking “<quotedText>„ small business concerns owned and controlled by socially and economically disadvantaged individuals</quotedText>” and inserting “<quotedText>, qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals</quotedText>”; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>in the second sentence, by inserting “<quotedText>qualified HUBZone small business concerns,</quotedText>” after “small business concerns,”;</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <chapeau>in paragraph (3)—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>by inserting “<quotedText>qualified HUBZone small business concerns,</quotedText>” after “small business concerns,” each place that term appears; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>by adding at the end the following:<quotedContent> <subparagraph class="indent2 fontsize10"> <num value="F">“(F) </num> <content>In this contract, the term ‘qualified HUBZone small business concern’ has the meaning given that term in section 3(p) of the Small Business Act.”;</content> </subparagraph> </quotedContent> </content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>in paragraph (4)(E), by striking “<quotedText>small business concerns and</quotedText>” and inserting “<quotedText>small business concerns, qualified HUBZone small business concerns, and</quotedText>”;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="4">(4) </num> <content>in paragraph (6), by inserting “<quotedText>qualified HUBZone small business concerns,</quotedText>” after “small business concerns,” each place that term appears; and</content> </paragraph> <page identifier="/us/stat/111/2632">111 STAT. 2632</page> <paragraph class="indent1 fontsize10"> <num value="5">(5) </num> <content>in paragraph (10), by inserting “<quotedText>qualified HUBZone small business concerns,</quotedText>” after “small business concerns,”.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <heading><inline class="smallCaps">Awards of Contracts</inline>.—</heading> <chapeau>Section 15 of the Small Business Act (15 U.S.C. 644) is amended—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <chapeau>in subsection (g)(1)—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>by inserting “<quotedText>qualified HUBZone small business concerns,</quotedText>” after “small business concerns,” each place that term appears;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>in the second sentence, by striking “<quotedText>20 percent</quotedText>” and inserting “<quotedText>23 percent</quotedText>”; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">(C) </num> <content>by inserting after the second sentence the following: “The Governmentwide goal for participation by qualified HUBZone small business concerns shall be established at not less than 1 percent of the total value of all prime contract awards for fiscal year 1999, not less than 1.5 percent of the total value of all prime contract awards for fiscal year 2000, not less than 2 percent of the total value of all prime contract awards for fiscal year 2001, not less than 2.5 percent of the total value of all prime contract awards for fiscal year 2002, and not less than 3 percent of the total value of all prime contract awards for fiscal year 2003 and each fiscal year thereafter.”;</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <chapeau>in subsection (g)(2)—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>in the first sentence, by striking “<quotedText>„ by small business concerns owned and controlled by socially and economically disadvantaged individuals</quotedText>” and inserting “<quotedText>, by qualified HUBZone small business concerns, by small business concerns owned and controlled by socially and economically disadvantaged individuals</quotedText>”;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>in the second sentence, by inserting “<quotedText>qualified HUBZone small business concerns,</quotedText>” after “small business concerns,”; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">(C) </num> <content>in the fourth sentence, by striking “<quotedText>by small business concerns owned and controlled by socially and economically disadvantaged individuals and participation by small business concerns owned and controlled by women</quotedText>” and inserting “<quotedText>by qualified HUBZone small business concerns, by small business concerns owned and controlled by socially and economically disadvantaged individuals, and by small business concerns owned and controlled by women</quotedText>”; and</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>in subsection (h), by inserting “<quotedText>qualified HUBZone small business concerns,</quotedText>” after “small business concerns,” each place that term appears.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num> <heading><inline class="smallCaps">Offenses and Penalties</inline>.—</heading> <chapeau>Section 16 of the Small Business Act (15 U.S.C. 645) is amended—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <chapeau>in subsection (d)(1)—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>by inserting “<quotedText>, a ‘qualified HUBZone small business concern’,</quotedText>” after “‘small business concern’,”; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>in subparagraph (A), by striking “<quotedText>section 9 or 15</quotedText>” and inserting “<quotedText>section 9, 15, or 31</quotedText>”; and</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>in subsection (e), by inserting “<quotedText>, a HUBZone small business concern’,</quotedText>” after “‘small business concern’,”.</content> </paragraph> </subsection> </section> <section> <num value="604">SEC. 604. </num> <heading>OTHER TECHNICAL AND CONFORMING AMENDMENTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num> <heading><inline class="smallCaps">Title 10, United States Code</inline>.—</heading> <chapeau>Section 2323 of title 10, United States Code, is amended—</chapeau> <page identifier="/us/stat/111/2633">111 STAT. 2633</page> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>in subsection (a)(1)(A), by inserting before the semicolon the following: “,and qualified HUBZone small business concerns (as defined in section 3(p) of the Small Business Act)”; and</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>in subsection (f)(1), by inserting “<quotedText>or as a qualified HUBZone small business concern (as defined in section 3(p) of the Small Business Act)</quotedText>” after “(as described in subsection (a))”.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <heading><inline class="smallCaps">Federal Home Loan Bank Act</inline>.—</heading> <chapeau>Section 21A(b)(13) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(b)(13)) is amended—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>by striking “<quotedText>concerns and small</quotedText>” and inserting “<quotedText>concerns, small</quotedText>”; and</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>by inserting “<quotedText>, and qualified HUBZone small business concerns (as defined in section 3(p) of the Small Business Act)</quotedText>” after “disadvantaged individuals”.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num> <heading><inline class="smallCaps">Small Business Economic Policy Act of 1980</inline>—</heading> <chapeau>Section 303(e) of the Small Business Economic Policy Act of 1980 (15 U.S.C. 631b(e)) is amended—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>in paragraph (1), by striking “<quotedText>and</quotedText>” at the end;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>in paragraph (2), by striking the period at the end and inserting “<quotedText>; and</quotedText>”; and</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>by adding at the end the following:<quotedContent> <paragraph class="indent1 fontsize10"> <num value="3">“(3) </num> <content>qualified HUBZone small business concern (as defined in section 3(p) of the Small Business Act).”.</content> </paragraph> </quotedContent> </content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num> <heading><inline class="smallCaps">Small Business Investment Act of 1958</inline>.—</heading> <content>Section 411(c)(3)(B) of the Small Business Investment Act of 1958 (15 U.S.C. 694b(c)(3)(B)) is amended by inserting before the semicolon the following: “, or to a qualified HUBZone small business concern (as defined in section 3(p) of the Small Business Act)”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num> <heading><inline class="smallCaps">Title 31, United States Code</inline>.—</heading> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <heading><inline class="smallCaps">Contracts for collection services</inline>.—</heading> <chapeau>Section 3718(b) of title 31, United States Code, is amended—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>in paragraph (1)(B), by inserting “<quotedText>and law firms that are qualified HUBZone small business concerns (as defined in section 3(p) of the Small Business Act)</quotedText>” after “disadvantaged individuals”; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <chapeau>in paragraph (3)—</chapeau> <clause class="indent3 fontsize10"> <num value="i">(i) </num> <content>in the first sentence, by inserting before the period “and law firms that are qualified HUBZone small business concerns”;</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">(ii) </num> <content>in subparagraph (A), by striking “<quotedText>and</quotedText>” at the end;</content> </clause> <clause class="indent3 fontsize10"> <num value="iii">(iii) </num> <content>in subparagraph (B), by striking the period at the end and inserting “<quotedText>; and</quotedText>”; and</content> </clause> <clause class="indent3 fontsize10"> <num value="iv">(iv) </num> <content>by adding at the end the following:<quotedContent> <subparagraph class="indent2 fontsize10"> <num value="C">“(C) </num> <content>the term ‘qualified HUBZone small business concern’ has the meaning given that term in section 3(p) of the Small Business Act.”.</content> </subparagraph> </quotedContent> </content> </clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <heading><inline class="smallCaps">Payments to local governments</inline>.—</heading> <chapeau>Section 6701(f) of title 31, United States Code, is amended—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <chapeau>in paragraph (1)—</chapeau> <clause class="indent3 fontsize10"> <num value="i">(i) </num> <content>in subparagraph (A), by striking “<quotedText>and</quotedText>” at the end;</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">(ii) </num> <content>in subparagraph (B), by striking the period at the end and inserting “<quotedText>; and</quotedText>”; and</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">(iii) </num> <content>by adding at the end the following: <page identifier="/us/stat/111/2634">111 STAT. 2634</page> <quotedContent> <subparagraph class="indent2 fontsize10"> <num value="C">“(C) </num> <chapeau>qualified HUBZone small business concerns.”; and (B) in paragraph (3)—</chapeau> <clause class="indent3 fontsize10"> <num value="i">(i) </num> <content>in subparagraph (A), by striking “<quotedText>and</quotedText>” at the end;</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">(ii) </num> <content>in subparagraph (B), by striking the period at the end and inserting “<quotedText>; and</quotedText>”; and</content> </clause> <clause class="indent3 fontsize10"> <num value="iii">(iii) </num> <content>by adding at the end the following:<quotedContent> <subparagraph class="indent2 fontsize10"> <num value="C">“(C) </num> <content>the term ‘qualified HUBZone small business concern’ has the meaning given that term in section 3(p) of the Small Business Act (15 U.S.C. 632(o)).”.</content> </subparagraph> </quotedContent> </content> </clause> </subparagraph> </quotedContent> </content> </clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <heading><inline class="smallCaps">Regulations</inline>.—</heading> <content>Section 7505(c) of title 31, United States Code, is amended by striking “<quotedText>small business concerns and</quotedText>” and inserting “<quotedText>small business concerns, qualified HUBZone small business concerns, and</quotedText>”.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num> <heading><inline class="smallCaps">Office of Federal Procurement Policy Act</inline>.—</heading> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <heading><inline class="smallCaps">Enumeration of included functions</inline>.—</heading> <chapeau>Section 6(d) of the Office of Federal Procurement Policy Act (41 U.S.C. 405(d)) is amended—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>in paragraph (11), by inserting “<quotedText>qualified HUBZone small business concerns (as defined in section 3(p) of the Small Business Act),</quotedText>” after “small businesses,”; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>in paragraph (12), by inserting “<quotedText>qualified HUBZone small business concerns (as defined in section 3(p) of the Small Business Act (15 U.S.C. 632(o)),</quotedText>” after “small businesses,”</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <heading><inline class="smallCaps">Procurement data</inline>.—</heading> <chapeau>Section 502 of the Women’s Business Ownership Act of 1988 (41 U.S.C. 417a) is amended—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <chapeau>in subsection (a)—</chapeau> <clause class="indent3 fontsize10"> <num value="i">(i) </num> <content>in the first sentence, by inserting “<quotedText>the number of qualified HUBZone small business concerns,</quotedText>” after “Procurement Policy”; and</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">(ii) </num> <content>by inserting a comma after “women”; and</content> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>in subsection (b), by inserting after “<quotedText>section 204 of this Act</quotedText>” the following: “, and the term ‘qualified HUBZone small business concern’ has the meaning given that term in section 3(p) of the Small Business Act (15 U.S.C. 632(o)).”.</content> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num> <heading><inline class="smallCaps">Energy Policy Act of 1992</inline>.—</heading> <chapeau>Section 3021 of the Energy Policy Act of 1992 (42 U.S.C. 13556) is amended—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <chapeau>in subsection (a)—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>in paragraph (2), by striking “<quotedText>or</quotedText>”;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>in paragraph (3), by striking the period and inserting “<quotedText>; or</quotedText>”; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">(C) </num> <content>by adding at the end the following:<quotedContent> <paragraph class="indent1 fontsize10"> <num value="4">“(4) </num> <content>qualified HUBZone small business concerns.”; and</content> </paragraph> </quotedContent> </content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>in subsection (b), by adding at the end the following:<quotedContent> <paragraph class="indent1 fontsize10"> <num value="3">“(3) </num> <content>The term ‘qualified HUBZone small business concern’ has the meaning given that term in section 3(p) of the Small Business Act (15 U.S.C. 632(o)).”.</content> </paragraph> </quotedContent> </content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="h">(h) </num> <heading><inline class="smallCaps">Title 49, United States Code</inline>.—</heading> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <heading><inline class="smallCaps">Project grant application approval conditioned on assurances about airport operation</inline>.—</heading> <chapeau>Section 47107(e) of title 49, United States Code, is amended—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>in paragraph (1), by inserting before the period “or qualified HUBZone small business concerns (as defined in section 3(p) of the Small Business Act)”;</content> </subparagraph> <page identifier="/us/stat/111/2635">111 STAT. 2635</page> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>in paragraph (4)(B), by inserting before the period “or as a qualified HUBZone small business concern (as defined in section 3(p) of the Small Business Act)”; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">(C) </num> <content>in paragraph (6), by inserting “<quotedText>or a qualified HUBZone small business concern (as defined in section 3(p) of the Small Business Act)</quotedText>” after “disadvantaged individual”.</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <heading><inline class="smallCaps">Minority and disadvantaged business participation</inline>.—</heading> <chapeau>Section 47113 of title 49, United States Code, is amended—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <chapeau>in subsection (a)—</chapeau> <clause class="indent3 fontsize10"> <num value="i">(i) </num> <content>in paragraph (1), by striking the period at the end and inserting a semicolon;</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">(ii) </num> <content>in paragraph (2), by striking the period at the end and inserting “<quotedText>; and</quotedText>”; and</content> </clause> <clause class="indent3 fontsize10"> <num value="iii">(iii) </num> <content>by adding at the end the following:<quotedContent> <paragraph class="indent1 fontsize10"> <num value="3">“(3) </num> <content>the term ‘qualified HUBZone small business concern’ has the meaning given that term in section 3(p) of the Small Business Act (15 US.C. 632(o)).”; and</content> </paragraph> </quotedContent> </content> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>in subsection (b), by inserting before the period “or qualified HUBZone small business concerns”.</content> </subparagraph> </paragraph> </subsection> </section> <section> <num value="605">SEC. 605. </num> <heading>REGULATIONS.<sidenote><p class="firstIndent1 fontsize8">Federal Register, publication.</p><p class="firstIndent1 fontsize8"><ref href="/us/usc/t15/s632">15 USC 632 note.</ref></p></sidenote></heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading> <content>Not later than 180 days after the date of enactment of this Act, the Administrator shall publish in the Federal Register such final regulations as may be necessary to carry out this title and the amendments made by this title.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <heading><inline class="smallCaps">Federal Acquisition Regulation</inline>.—</heading> <content>Not later than 180 days after the date on which final regulations are published under subsection (a), the Federal Acquisition Regulatory Council shall amend the Federal Acquisition Regulation in order to ensure consistency between the Federal Acquisition Regulation, this title and the amendments made by this title, and the final regulations published under subsection (a).</content> </subsection> </section> <section> <num value="SEC">SEC. </num> <heading>606. REPORT.<sidenote><p class="firstIndent1 fontsize8"><ref href="/us/usc/t15/s657a">15 USC 657a note.</ref></p></sidenote></heading> <content>Not later than March 1, 2002, the Administrator shall submit to the Committees a report on the implementation of the HUBZone program established under section 31 of the Small Business Act (as added by section 602(b) of this title) and the degree to which the HUBZone program has resulted in increased employment opportunities and an increased level of investment in HUBZones (as defined in section 3(p) of the Small Business Act (15 U.S.C. 632(p)), as added by section 602(a) of this title).</content> </section> <section> <num value="607">SEC. 607. </num> <heading>AUTHORIZATION OF APPROPRIATIONS.</heading> <chapeau>Section 20 of the Small Business Act (15 U.S.C. 631 note) (as amended by section 101 of this Act) is amended—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>in subsection (c), by adding at the end the following:<quotedContent> <paragraph class="indent1 fontsize10"> <num value="3">“(3) </num> <heading><inline class="smallCaps">HUBZone program</inline>.—</heading> <content>There are authorized to be appropriated to the Administration to carry out the program under section 31, $5,000,000 for fiscal year 1998.”;</content> </paragraph> </quotedContent> </content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>in subsection (d), by adding at the end the following:<quotedContent> <paragraph class="indent1 fontsize10"> <num value="3">“(3) </num> <heading><inline class="smallCaps">HUBZone program</inline>.—</heading> <content>There are authorized to be appropriated to the Administration to carry out the program under section 31, $5,000,000 for fiscal year 1999.”; and</content> </paragraph> </quotedContent> </content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>in subsection (e), by adding at the end the following:<page identifier="/us/stat/111/2636">111 STAT. 2636</page> <quotedContent> <paragraph class="indent1 fontsize10"> <num value="3">“(3) </num> <heading><inline class="smallCaps">HUBZone program</inline>.—</heading> <content>There are authorized to be appropriated to the Administration to carry out the program under section 31, $5,000,000 for fiscal year 2000.”.</content> </paragraph> </quotedContent> </content> </paragraph> </section> <num value="VII">TITLE VII—</num> <heading>SERVICE DISABLED VETERANS</heading> <section> <num value="701">SEC. 701. <sidenote><p class="firstIndent1 fontsize8"><ref href="/us/usc/t15/s631">15 USC 631 note.</ref></p></sidenote></num> <heading>PURPOSES.</heading> <chapeau>The purposes of this title are—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>to foster enhanced entrepreneurship among eligible veterans by providing increased opportunities;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>to vigorously promote the legitimate interests of small business concerns owned and controlled by eligible veterans; and</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>to ensure that those concerns receive fair consideration in purchases made by the Federal Government.</content> </paragraph> </section> <section> <num value="702">SEC. 702. <sidenote><p class="firstIndent1 fontsize8"><ref href="/us/usc/t15/s631">15 USC 631 note.</ref></p></sidenote></num> <heading>DEFINITIONS.</heading> <chapeau>In this title:</chapeau><paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <heading><inline class="smallCaps">Eligible veteran</inline>.—</heading> <content>The term “eligible veteran” means a disabled veteran (as defined in section 4211(3) of title 38, United States Code).</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <heading><inline class="smallCaps">Small business concern owned and controlled by eligible veterans</inline>.—</heading> <chapeau>The term “small business concern owned and controlled by eligible veterans” means a small business concern (as defined in section 3 of the Small Business Act)—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>that is at least 51 percent owned by 1 or more eligible veterans, or in the case of a publicly owned business, at least 51 percent of the stock of which is owned by 1 or more eligible veterans; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>whose management and daily business operations are controlled by eligible veterans.</content> </subparagraph> </paragraph> </section> <section> <num value="703">SEC. 703. <sidenote><p class="firstIndent1 fontsize8"><ref href="/us/usc/t15/s631">15 USC 631 note.</ref></p></sidenote></num> <heading>REPORT BY SMALL BUSINESS ADMINISTRATION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num> <heading><inline class="smallCaps">Study and Report</inline>.—</heading> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading> <chapeau>Not later than 9 months after the date of enactment of this Act, the Administrator shall conduct a comprehensive study and submit to the Committees a final report containing findings and recommendations of the Administrator on—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>the needs of small business concerns owned and controlled by eligible veterans;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>the availability and utilization of Administration programs by small business concerns owned and controlled by eligible veterans;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">(C) </num> <content>the percentage, and dollar value, of Federal contracts awarded to small business concerns owned and controlled by eligible veterans in the preceding 5 fiscal years; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="D">(D) </num> <content>methods to improve Administration and other agency programs to serve the needs of small business concerns owned and controlled by eligible veterans.</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <heading><inline class="smallCaps">Contents</inline>.—</heading> <content>The report under paragraph (1) shall include recommendations to Congress concerning the need for legislation and recommendations to the Office of Management and Budget, <page identifier="/us/stat/111/2637">111 STAT. 2637</page>relevant offices within the Administration, and the Department of Veterans Affairs.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <heading><inline class="smallCaps">Conduct of Study</inline>.—</heading> <chapeau>In carrying out subsection (a), the Administrator—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>may conduct surveys of small business concerns owned and controlled by eligible veterans and service disabled veterans, including those who have sought financial assistance or other services from the Administration;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>shall consult with the appropriate committees of Congress, relevant groups and organizations in the nonprofit sector, and Federal or State government agencies; and</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>shall have access to any information within other Federal agencies that pertains to such veterans and their small businesses, unless such access is specifically prohibited by law.</content> </paragraph> </subsection> </section> <section> <num value="704">SEC. 704. <sidenote><p class="firstIndent1 fontsize8"><ref href="/us/usc/t15/s631">15 USC 631 note.</ref></p></sidenote></num> <heading>INFORMATION COLLECTION.</heading> <content>After the date of issuance of the report required by section 703(a), the Secretary of Veterans Affairs shall, in consultation with the Assistant Secretary for Veterans’ Employment and Training and the Administrator, engage in efforts each fiscal year to identify small business concerns owned and controlled by eligible veterans in the United States. The Secretary shall inform each small business concern identified under this section that information on Federal procurement is available from the Administrator.</content> </section> <section> <num value="705">SEC. 705. </num> <heading>STATE OF SMALL BUSINESS REPORT.</heading> <content>Section 303(b) of the Small Business Economic Policy Act of 1980 (15 U.S.C. 631b(b)) is amended by striking “<quotedText>and female-owned businesses</quotedText>” and inserting “<quotedText>, female-owned, and veteran-owned businesses</quotedText>”.</content> </section> <section> <num value="706">SEC. 706. </num> <heading>LOANS TO VETERANS.</heading> <content>Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended by inserting after paragraph (7) the following:<quotedContent> <paragraph class="indent1 fontsize10"> <num value="8">“(8) </num> <content>The Administration may make loans under this subsection to small business concerns owned and controlled by disabled veterans (as defined in section 4211(3) of title 38, United States Code).”.</content> </paragraph> </quotedContent> </content> </section> <section> <num value="707">SEC. 707. </num> <heading>ENTREPRENEURIAL TRAINING, COUNSELING, AND MANAGEMENT ASSISTANCE.<sidenote><p class="firstIndent1 fontsize8"><ref href="/us/usc/t15/s631">15 USC 631 note.</ref></p></sidenote></heading> <content>The Administrator shall take such actions as may be necessary to ensure that small business concerns owned and controlled by eligible veterans have access to programs established under the Small Business Act that provide entrepreneurial training, business development assistance, counseling, and management assistance to small business concerns, including, among others, the Small Business Development Center program and the Service Corps of Retired Executives (SCORE) program.</content> </section> <section> <num value="708">SEC. 708. </num> <heading>GRANTS FOR ELIGIBLE VETERANS’ OUTREACH PROGRAMS.</heading> <chapeau>Section 8(b) of the Small Business Act (15 U.S.C. 637(b)) is amended—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>in paragraph (15), by striking “<quotedText>and</quotedText>” at the end;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>in the first paragraph designated as paragraph (16), by striking the period at the end and inserting “<quotedText>; and</quotedText>”; and</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>by striking the second paragraph designated as paragraph (16) and inserting the following:<page identifier="/us/stat/111/2638">111 STAT. 2638</page> <quotedContent> <paragraph class="indent1 fontsize10"> <num value="17">“(17) </num> <content>to make grants to, and enter into contracts and cooperative agreements with, educational institutions, private businesses, veterans’ nonprofit community-based organizations, and Federal, State, and local departments and agencies for the establishment and implementation of outreach programs for disabled veterans (as defined in section 4211(3) of title 38, United States Code).”.</content> </paragraph> </quotedContent> </content> </paragraph> </section> <section> <num value="709">SEC. 709. <sidenote><p class="firstIndent1 fontsize8"><ref href="/us/usc/t15/s631">15 USC 631 note.</ref></p></sidenote></num> <heading>OUTREACH FOR ELIGIBLE VETERANS.</heading> <content>The Administrator, the Secretary of Veterans Affairs, and the Assistant Secretary of Labor for Veterans’ Employment and Training, shall develop and implement a program or comprehensive outreach to assist eligible veterans, which program shall include business training and management assistance, employment and relocation counseling, and dissemination of information on veterans’ benefits and veterans’ entitlements.</content> </section> Approved December 2, 1997.
LEGISLATIVE HISTORY—S. 1139 (H R. 2261): HOUSE REPORTS: No. 105–246 accompanying H.R. 2261 (Comm. on Small Business). SENATE REPORTS: No. 105–62 (Comm. on Small Business). CONGRESSIONAL RECORD, Vol. 143 (1997):

Sept. 9, considered and passed Senate.

Sept. 29, considered and passed House, amended, in lieu of H.R. 2261.

Oct. 31, Senate concurred in House amendment with an amendment.

Nov. 9, House concurred in Senate amendment.

 Public Law 105–136: To amend the Immigration and Nationality Act to authorize appropriations for refugee and entrant assistance for fiscal years 1998 and 1999. Public Law 136 Public Law 105–136 111 Stat. 2639 1997-12-02 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105 public 111 STAT. 2639 Public Law 105–136 105th Congress
An Act To amend the Immigration and Nationality Act to authorize appropriations for refugee and entrant assistance for fiscal years 1998 and 1999.

Dec. 2, 1997

[S. 1161]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. AUTHORIZATION OF APPROPRIATIONS FOR REFUGEE AND ENTRANT ASSISTANCE. (a) Authorization of Appropriations.— Section 414(a) of the Immigration and Nationality Act (8 U.S.C. 1524(a)) is amended by striking “fiscal year 1995, fiscal year 1996, and fiscal year 1997” and inserting “each of fiscal years 1998 and 1999”. (b) Effective Date.— The amendment made by subsection (a)

8 USC 1524 note.

shall take effect October 1, 1997.
Approved December 2, 1997.
LEGISLATIVE HISTORY—S. 1161: CONGRESSIONAL RECORD, Vol. 143 (1997):

Sept. 10, considered and passed Senate.

Sept. 29, Oct. 1, Nov. 13, considered and passed House.

 Public Law 105–137: To amend chapter 443 of title 49, United States Code, to extend the authorization of the aviation insurance program, and for other purposes. Public Law 137 Public Law 105–137 111 Stat. 2640 1997-12-02 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105 public 111 STAT. 2640 Public Law 105–137 105th Congress
An Act To amend chapter 443 of title 49, United States Code, to extend the authorization of the aviation insurance program, and for other purposes.

Dec. 2, 1997

[S. 1193]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Aviation Insurance Reauthorization Act of 1997.

49 USC 40101 note.
SECTION 1. SHORT TITLE. This Act may be cited as the “Aviation Insurance Reauthorization Act of 1997”.
SEC. 2. VALUATION OF AIRCRAFT. (a) General Authority for Insurance and Reinsurance.— Section 44302(a)(2) of title 49, United States Code, is amended by striking “as determined by the Secretary.” and inserting “as determined by the Secretary in accordance with reasonable business practices in the commercial aviation insurance industry.”. (b) Limitation on Maximum Insured Amount.— Section 44306(c) of title 49, United States Code, is amended by striking “as determined by the Secretary.” and inserting “as determined by the Secretary in accordance with reasonable business practices in the commercial aviation insurance industry.”.
SEC. 3. EFFECT OF INDEMNITY AGREEMENTS. Section 44305(b) of title 49, United States Code, is amended by adding at the end the following: “If such an agreement is countersigned by the President or the President’s designee, the agreement shall constitute, for purposes of section 44302(b), a determination that continuation of the aircraft operations to which the agreement applies is necessary to carry out the foreign policy of the United States.”
SEC. 4. ARBITRATION AUTHORITY. (a) Authorization of Binding Arbitration.— Section 44308(b)(1) of title 49, United States Code, is amended by inserting after the second sentence the following: “Any such policy may authorize the binding arbitration of claims made thereunder in such manner as may be agreed to by the Secretary and any commercial insurer that may be responsible for any part of a loss to which such policy relates.”. (b) Authority to Pay Arbitration Award.— Section 44308(b)(2) of such title is amended— (1) by striking “and” at the end of subparagraph (A); (2) by redesignating subparagraph (B) as subparagraph (C); and (3) by inserting after subparagraph (A) the following:111 STAT. 2641 “(B) pay the amount of a binding arbitration award made under paragraph (1); and”.
SEC. 5. EXTENSION OF PROGRAM. (a) In General.— Section 44310 of title 49, United States Code, is amended by striking “September 30, 2002” and inserting “December 31, 1998”. (b) Effective Date.— The amendment made by subsection (a)

49 USC 44310 note.

takes effect on October 1, 1997.
SEC. 6. USE OF AIRCRAFT FOR DEMONSTRATION. Section 40102(a)(37)(A) of title 49, United States Code, is amended— (1) by striking “or” in clause (i); (2) by redesignating clause (ii) as clause (iii); and (3) by inserting after clause (i) the following: “(ii) owned by the United States Government and operated by any person for purposes related to crew training, equipment development, or demonstration; or”.
Approved December 2, 1997.
LEGISLATIVE HISTORY—S. 1193 (H.R. 2036): HOUSE REPORTS: No. 105–244 accompanying H.R. 2036 (Comm. on Transportation and Infrastructure). SENATE REPORTS: No. 105–140 (Comm. on Commerce, Science, and Transportation). CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 8, considered and passed Senate.

Nov. 13, considered and passed House.

 Public Law 105–138: To provide for the design, construction, furnishing, and equipping of a Center for Historically Black Heritage within Florida A&M University. Public Law 138 Public Law 105–138 111 Stat. 2642 1997-12-02 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105 public 111 STAT. 2642 Public Law 105–138 105th Congress
An Act To provide for the design, construction, furnishing, and equipping of a Center for Historically Black Heritage within Florida A&M University.

Dec. 2, 1997

[S. 1559]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. CONSTRUCTION OF A CENTER FOR REGIONAL BLACK CULTURE. (a) Findings.— Congress makes the following findings: (1) Currently 500,000 historically important artifacts of the Civil War era and the early days of the civil rights movement in the Southeast region of the United States are housed at Florida A&M University. (2) To preserve this large repository of African-American history and artifacts it is appropriate that the Federal Government share in the cost of construction of this national repository for culture and history. (b) Definition.— In this section: (1) Center.— The term “Center” means the Center for Historically Black Heritage at Florida A&M University. (2) Secretary.— The term “Secretary” means the Secretary of the Interior acting through the Director of the National Park Service. (c) Construction of Center.— The Secretary may award a grant to the State of Florida to pay for the Federal share of the cost, design, construction, furnishing, and equipping of the Center at Florida A&M University. (d) Grant Requirements.— (1) In general.— In order to receive a grant awarded under subsection (c), Florida A&M University, shall submit to the Secretary a proposal. (2) Federal share.— The Federal share described in subsection (c) shall be 50 percent. 111 STAT. 2643 (e) Authorization of Appropriation.— There is authorized to be appropriated to the Secretary of the Interior to carry out this section a total of $3,800,000 for fiscal year 1998 and any succeeding fiscal years. Funds appropriated pursuant to the authority of the preceding sentence shall remain available until expanded.
Approved December 2, 1997.
LEGISLATIVE HISTORY—S. 1559: CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 13, considered and passed Senate and House.

 Public Law 105–139: To make technical corrections to the Nicaraguan Adjustment and Central American Relief Act. Public Law 139 Public Law 105–139 111 Stat. 2644 1997-12-02 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105 public 111 STAT. 2644 Public Law 105–139 105th Congress
An Act To make technical corrections to the Nicaraguan Adjustment and Central American Relief Act.

Dec. 2, 1997

[S. 1565]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. TECHNICAL CORRECTIONS TO NICARAGUAN ADJUSTMENT AND CENTRAL AMERICAN RELIEF ACT. (a)

Ante, p. 2193.

 Adjustment of Status.— Section 202(a)(1) of the Nicaraguan Adjustment and Central American Relief Act is amended— (1) in the matter preceding subparagraph (A), by striking “Notwithstanding section 245(c) of the Immigration and Nationality Act, the” and inserting “The”; and (2) in subparagraph (B)— (A) by striking “is otherwise eligible to receive an immigrant visa and”; and (B) by striking “(6)(A), and (7)(A)” and inserting “(6)(A), (7)(A), and (9)(B)”. (b) Adjustment of Status for Spouses and Children.— Section 202(d)(1) of the Nicaraguan Adjustment and Central American Relief Act is amended— (1) in the matter preceding subparagraph (A), by striking “Notwithstanding section 245(c) of the Immigration and Nationality Act, the” and inserting “The”; and (2) in subparagraph (D)— (A) by striking “is otherwise eligible to receive an immigrant visa and”; (B) by striking “exclusion” and inserting “inadmissibility”; and (C) by striking “(6)(A), and (7)(A)” and inserting “(6)(A), (7)(A), and (9)(B)”. (c)

Ante, p. 2196.

 Transitional Rules with Regard to Suspension of Deportation..— Section 309(c)(5)(C) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, as added by section 203(a)(1) of the Nicaraguan Adjustment and Central American Relief Act is amended (1) in clause (i), in the matter preceding subclause (I), by inserting “of this paragraph” after “subparagraph (A)”; (2) in clause (ii), by striking “this clause (i)” and inserting “clause (i)”. (d) Temporary Reduction in Diversity Visas.— Section 203(d) of the Nicaraguan Adjustment and Central American Relief Act is amended— (1) in paragraph (1) by inserting “otherwise” before “available under that section”; and (2) in paragraph (2)(A)— 111 STAT. 2645 (A) by striking “309(c)(5)(C)” and inserting “309(c)(5)(C)(i)”; and (B) by striking “year exceeds—” and inserting “year; exceeds”. (e) Temporary Reduction in Other Workers’ Visas.— Section 203(e)(2)(A) of the Nicaraguan Adjustment and Central American Relief Act is amended by striking “(d)(2)(A), exceeds—” and inserting “(d)(2)(A); exceeds”. (f)

8 USC 1101 note.

 Effective Date.— The amendments made by this section— (1) shall take effect upon the enactment of the Nicaraguan Adjustment and Central American Relief Act (as contained in the District of Columbia Appropriations Act, 1998); and (2) shall be effective as if included in the enactment of such Act.
Approved December 2, 1997.
LEGISLATIVE HISTORY—S. 1565: CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 13, considered and passed Senate and House.

 Public Law 105–140: To provide for the convening of the Second Session of the One Hundred Fifth Congress. Public Law 140 Public Law 105–140 111 Stat. 2646 1997-12-02 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105 public 111 STAT. 2646 Public Law 105–140 105th Congress
Joint Resolution To provide for the convening of the Second Session of the One Hundred Fifth Congress.

Dec. 2, 1997

[S.J. Res. 39]

 Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,
That the second regular session of the One Hundred Fifth Congress shall begin at noon on Tuesday, January 27, 1998.
SEC. 2. Prior to the convening of the second regular session of the One Hundred Fifth Congress on January 27, 1998, as provided in the first section of thus joint resolution, Congress shall reassemble at noon on the second day after its Members are notified in accordance with section 3 of this joint resolution.
SEC. 3. The Speaker of the House and the Majority Leader of the Senate, acting jointly after consultation with the Minority Leader of the House and the Minority Leader of the Senate, shall notify the Members of the House and Senate, respectively, to assemble whenever, in their opinion, the public interest shall warrant it.
Approved December 2, 1997.
LEGISLATIVE HISTORY—S. J. Res. 39: CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 13, considered and passed Senate and House.

 Public Law 105–141: To require the Attorney General to establish a program in local prisons to identify, prior to arraignment, criminal aliens and aliens who are unlawfully present in the United States, and for other purposes. Public Law 141 Public Law 105–141 111 Stat. 2647 1997-12-05 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105 public 111 STAT. 2647 Public Law 105–141 105th Congress
An Act To require the Attorney General to establish a program in local prisons to identify, prior to arraignment, criminal aliens and aliens who are unlawfully present in the United States, and for other purposes.

Dec. 5, 1997

[H.R. 1493]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

8 USC 1226 note.
SECTION 1. PROGRAM OF IDENTIFICATION OF CERTAIN DEPORTABLE ALIENS AWAITING ARRAIGNMENT. (a) Establishment of Program.— Not later than 6 months after the date of the enactment of this Act, and subject to such amounts as are provided in appropriations Acts, the Attorney General shall establish and implement a program to identify, from among the individuals who are incarcerated in local governmental incarceration facilities prior to arraignment on criminal charges, those individuals who are within 1 or more of the following classes of deportable aliens: (1) Aliens unlawfully present in the United States. (2) Aliens described in paragraph (2) or (4) of section 237(a) of the Immigration and Nationality Act (as redesignated by section 305(a)(2) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996). (b) Description of Program.— The program authorized by subsection (a) shall include— (1) the detail, to each incarceration facility selected under subsection (c), of at least one employee of the Immigration and Naturalization Service who has expertise in the identification of aliens described in subsection (a); and (2) provision of funds sufficient to provide for— (A) the detail of such employees to each selected facility on a full-time basis, including the portions of the day or night when the greatest number of individuals are incarcerated prior to arraignment; (B) access for such employees to records of the Service and other Federal law enforcement agencies that are necessary to identify such aliens; and (C) in the case of an individual identified as such an alien, pre-arraignment reporting to the court regarding the Service’s intention to remove the alien from the United States. (c) Selection of Facilities.— (1) In general.— The Attorney General shall select for participation in the program each incarceration facility that satisfies the following requirements:111 STAT. 2648 (A) The facility is owned by the government of a local political subdivision described in clause (i) or (ii) of subparagraph (C). (B) Such government has submitted a request for such selection to the Attorney General. (C) The facility is located— (i) in a county that is determined by the Attorney General to have a high concentration of aliens described in subsection (a); or (ii) in a city, town, or other analogous local political subdivision, that is determined by the Attorney General to have a high concentration of such aliens (but only in the case of a facility that is not located in a county). (D) The facility incarcerates or processes individuals prior to their arraignment on criminal charges. (2) Number of qualifying subdivisions.— For any fiscal year, the total number of local political subdivisions determined under clauses (i) and (ii) of paragraph (1)(C) to meet the standard in such clauses shall be the following: (A) For fiscal year 1999, not less than 10 and not more than 25. (B) For fiscal year 2000, not less than 25 and not more than 50. (C) For fiscal year 2001, not more than 75. (D) For fiscal year 2002, not more than 100. (E) For fiscal year 2003 and subsequent fiscal years, 100, or such other number of political subdivisions as may be specified in appropriations Acts. (3) Facilities in interior states.— For any fiscal year, of the local political subdivisions determined under clauses (i) and (ii) of paragraph (1)(C) to meet the standard in such clauses, not less than 20 percent shall be in States that are not contiguous to a land border. (4) Treatment of certain facilities.— All of the incarceration facilities within the county of Orange, California, and the county of Ventura, California, that are owned by the government of a local political subdivision, and satisfy the requirements of paragraph (1)(D), shall be selected for participation in the program.
SEC. 2.

8 USC 1226 note.

 STUDY AND REPORT. Not later than 1 year after the date of the enactment of this Act, the Attorney General shall complete a study, and submit a report to the Congress, concerning the logistical and technological feasibility of implementing the program under section 1 in a greater number of locations than those selected under such section through— (1) the assignment of a single Immigration and Naturalization Service employee to more than 1 incarceration facility; and 111 STAT. 2649 (2) the development of a system to permit the Attorney General to conduct off-site verification, by computer or other electronic means, of the immigration status of individuals who are incarcerated in local governmental incarceration facilities prior to arraignment on criminal charges.
Approved December 5, 1997.
LEGISLATIVE HISTORY—H R. 1493: HOUSE REPORTS: No. 105–338 (Comm. on the Judiciary). CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 4, considered and passed House.

Nov. 13, considered and passed Senate.

 Public Law 105–142: To make clarifications to the Pilot Records Improvement Act of 1996, and for other purposes. Public Law 142 Public Law 105–142 111 Stat. 2650 1997-12-05 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105 public 111 STAT. 2650 Public Law 105–142 105th Congress
An Act To make clarifications to the Pilot Records Improvement Act of 1996, and for other purposes.

Dec. 5, 1997

[H.R. 2626]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. RECORDS OF EMPLOYMENT OF PILOT APPLICANTS. Section 44936(f) of title 49, United States Code, is amended— (1) in paragraph (1) by striking “Before hiring an individual” and inserting “Subject to paragraph (14), before allowing an individual to begin service”; (2) in paragraph (1)(B) by inserting “as a pilot of a civil or public aircraft” before “at any time”; (3) in paragraph (4)— (A) by inserting “and air carriers” after “Administrator”; and (B) by striking “paragraph (1)(A)” and inserting “paragraphs (1)(A) and (1)(B)”; (4) in paragraph (5) by striking “this paragraph” and inserting “this subsection”; (5) in paragraph (10)— (A) by inserting “who is or has been” before “employed”; and (B) by inserting “, but not later than 30 days after the date” after “reasonable time”; and (6) by adding at the end the following: “(14) Special rules with respect to certain pilots.— “(A) Pilots of certain small aircraft.— Notwithstanding paragraph (1), an air carrier, before receiving information requested about an individual under paragraph (1), may allow the individual to begin service for a period not to exceed 90 days as a pilot of an aircraft with a maximum payload capacity (as defined in section 119.3 of title 14, Code of Federal Regulations) of 7,500 pounds or less, or a helicopter, on a flight that is not a scheduled operation (as defined in such section). Before the end of the 90-day period, the air carrier shall obtain and evaluate such information. The contract between the carrier and the individual shall contain a term that provides that the continuation of the individual’s employment, after the last day of the 90-day period, depends on a satisfactory evaluation. 111 STAT. 2651 “(B) Good faith exception.— Notwithstanding paragraph (1), an air carrier, without obtaining information about an individual under paragraph (1)(B) from an air carrier or other person that no longer exists, may allow the individual to begin service as a pilot if the air carrier required to request the information has made a documented good faith attempt to obtain such information.”.
Approved December 5, 1997.
LEGISLATIVE HISTORY—H R. 2626: HOUSE REPORTS: No. 105–372 (Comm. on Transportation and Infrastructure). CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 9, considered and passed House.

Nov. 13, considered and passed Senate.

 Public Law 105–143: To provide for the division, use, and distribution of judgment funds of the Ottawa and Chippewa Indians of Michigan pursuant to dockets numbered 18-E, 58, 364, and 18-R before the Indian Claims Commission. Public Law 143 Public Law 105–143 111 Stat. 2652 1997-12-15 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105 public 111 STAT. 2652 Public Law 105–143 105th Congress
An Act To provide for the division, use, and distribution of judgment funds of the Ottawa and Chippewa Indians of Michigan pursuant to dockets numbered 18-E, 58, 364, and 18-R before the Indian Claims Commission.

Dec. 15, 1997

[H.R. 1604]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Michigan Indian Land Claims Settlement Act.
SECTION 1. SHORT TITLE. This Act may be cited as the “Michigan Indian Land Claims Settlement Act”.
<num value="I">TITLE I—</num> <heading>DIVISION, USE, AND DISTRIBUTION OF JUDGMENT FUNDS OF THE OTTAWA AND CHIPPEWA INDIANS OF MICHIGAN</heading> <section> <num value="101">SEC. 101. </num> <heading>TABLE OF CONTENTS.</heading> <content>The table of contents for this Act is as follows:<toc> <referenceItem role="section"> <designator>Sec. 1. </designator> <label>Short title.</label> </referenceItem> <referenceItem role="title"> <designator>TITLE I—</designator> <label>DIVISION, USE, AND DISTRIBUTION OF JUDGMENT FUNDS OFTHE OTTAWA AND CHIPPEWA INDIANS OF MICHIGAN</label> </referenceItem> <referenceItem role="section"> <designator>Sec. 101. </designator> <label>Table of contents.</label> </referenceItem> <referenceItem role="section"> <designator>Sec. 102. </designator> <label>Findings; purpose.</label> </referenceItem> <referenceItem role="section"> <designator>Sec. 103. </designator> <label>Definitions.</label> </referenceItem> <referenceItem role="section"> <designator>Sec. 104. </designator> <label>Division of funds.</label> </referenceItem> <referenceItem role="section"> <designator>Sec. 105. </designator> <label>Development of tribal plans for use or distribution of funds.</label> </referenceItem> <referenceItem role="section"> <designator>Sec. 106. </designator> <label>Preparation of judgment distribution roll of descendants.</label> </referenceItem> <referenceItem role="section"> <designator>Sec. 107. </designator> <label>Plan for use and distribution of Bay Mills Indian Community funds.</label> </referenceItem> <referenceItem role="section"> <designator>Sec. 108. </designator> <label>Plan for use of Sault Ste. Marie Tribe of Chippewa Indians of Michigan funds.</label> </referenceItem> <referenceItem role="section"> <designator>Sec. 109. </designator> <label>Plan for use of Grand Traverse Band of Ottawa and Chippewa Indians of Michigan funds.</label> </referenceItem> <referenceItem role="section"> <designator>Sec. 110. </designator> <label>Payment to newly recognized or reaffirmed tribes.</label> </referenceItem> <referenceItem role="section"> <designator>Sec. 111. </designator> <label>Treatment of funds in relation to other laws.</label> </referenceItem> <referenceItem role="section"> <designator>Sec. 112. </designator> <label>Treaties not affected.</label> </referenceItem> <referenceItem role="title"> <designator>TITLE II—</designator> <label>LIMITATION ON HEALTH CARE CONTRACTS AND COMPACTS FOR THE KETCHIKAN GATEWAY BOROUGH</label> </referenceItem> <referenceItem role="section"> <designator>Sec. 201. </designator> <label>Findings.</label> </referenceItem> <referenceItem role="section"> <designator>Sec. 202. </designator> <label>Definitions.</label> </referenceItem> <referenceItem role="section"> <designator>Sec. 203. </designator> <label>Limitation.</label> </referenceItem> </toc> </content> </section> <page identifier="/us/stat/111/2653">111 STAT. 2653</page> <section> <num value="102">SEC. 102. </num> <heading>FINDINGS; PURPOSE.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num> <heading><inline class="smallCaps">Findings</inline>.—</heading> <chapeau>Congress finds the following:</chapeau><paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>Judgments were rendered in the Indian Claims Commission in dockets numbered 18–E, 58, and 364 in favor of the Ottawa and Chippewa Indians of Michigan and in docket numbered 18–R in favor of the Sault Ste. Marie Band of Chippewa Indians.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>The funds Congress appropriated to pay these judgments have been held by the Department of the Interior for the beneficiaries pending a division of the funds among the beneficiaries in a manner acceptable to the tribes and descendency group and pending development of plans for the use and distribution of the respective tribes’ share.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>The 1836 treaty negotiations show that the United States concluded negotiations with the Chippewa concerning the cession of the upper peninsula and with the Ottawa with respect to the lower peninsula.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="4">(4) </num> <content>A number of sites in both areas were used by both the Ottawa and Chippewa Indians. The Ottawa and Chippewa Indians were intermarried and there were villages composed of members of both tribes.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <heading><inline class="smallCaps">Purpose</inline>.—</heading> <content>It is the purpose of this title to provide for the fair and equitable division of the judgment funds among the beneficiaries and to provide the opportunity for the tribes to develop plans for the use or distribution of their share of the funds.</content> </subsection> </section> <section> <num value="103">SEC. 103. </num> <heading>DEFINITIONS.</heading> <chapeau>For purposes of this title the following definitions apply:</chapeau><paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <chapeau>The term “judgment funds” means funds appropriated in full satisfaction of judgments made in the Indian Claims Commission—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>reduced by an amount for attorneys fees and litigation expenses; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>increased by the amount of any interest accrued with respect to such funds.</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>The term “dockets 18–E and 58 judgment funds” means judgment funds awarded in dockets numbered 18–E and 58 in favor of the Ottawa and Chippewa Indians of Michigan.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>The term “docket 364 judgment funds” means the judgment funds awarded in docket numbered 364 in favor of the Ottawa and Chippewa Indians of Michigan.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="4">(4) </num> <content>The term “docket 18–R judgment funds” means the judgment funds awarded in docket numbered 18–R in favor of the Sault Ste. Marie Band of Chippewa Indians.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="5">(5) </num> <content>The term “judgment distribution roll of descendants” means the roll prepared pursuant to section 106.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="6">(6) </num> <content>The term “Secretary” means the Secretary of the Interior.</content> </paragraph> </section> <section> <num value="104">SEC. 104. </num> <heading>DIVISION OF FUNDS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num> <heading><inline class="smallCaps">Docket 18–E and 58 Judgment Funds</inline>.—</heading> <chapeau>The Secretary shall divide the docket 18—E and 58 judgment funds as follows:</chapeau><paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>The lesser of 13.5 percent and $9,253,104.47, and additional funds as described in this section, for newly recognized or reaffirmed tribes described in section 110 and eligible individuals on the judgment distribution roll of descendants.</content> </paragraph> <page identifier="/us/stat/111/2654">111 STAT. 2654</page> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <chapeau>34.6 percent to the Sault Ste. Marie Tribe of Chippewa Indians of Michigan and the Bay Mills Indian Community, of which—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>the lesser of 35 percent of the principal and interest as of December 31, 1996, and $8,313,877 shall be for the Bay Mills Indian Community; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>the remaining amount (less $161,723.89 which shall be added to the funds described in paragraph (1)) shall be for the Sault Ste. Marie Tribe of Chippewa Indians of Michigan.</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>17.3 percent (less $161,723.89 which shall be added to the funds described in paragraph (1)) to the Grand Traverse Band of Ottawa and Chippewa Indians of Michigan.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="4">(4) </num> <content>17.3 percent (less $161,723.89 which shall be added to the funds described in paragraph (1)) to the Little Traverse Bay Bands of Odawa Indians of Michigan.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="5">(5) </num> <content>17.3 percent (less $161,723.89 which shall be added to the funds described in paragraph (1)) to the Little River Band of Ottawa Indians of Michigan.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="6">(6) </num> <content>Any funds remaining after distribution pursuant to paragraphs (1) through (5) shall be divided and distributed to each of the recognized tribes listed in this subsection in an amount which bears the same ratio to the amount so divided and distributed as the distribution of judgment funds pursuant to each of paragraphs (2) through (5) bears to the total distribution under all such paragraphs.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <heading><inline class="smallCaps">Docket 364 Judgment Funds</inline>.—</heading> <chapeau>The Secretary shall divide the docket 364 judgment funds as follows:</chapeau><paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>The lesser of 20 percent and $28,026.79 for newly recognized or reaffirmed tribes described in section 110 and eligible individuals on the judgment distribution roll of descendants.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <chapeau>32 percent to the Sault Ste. Marie Tribe of Chippewa Indians of Michigan and the Bay Mills Indian Community, of which—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>35 percent shall be for the Bay Mills Indian Community; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>the remaining amount shall be for the Sault Ste. Marie Tribe of Chippewa Indians of Michigan.</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>16 percent to the Grand Traverse Band of Ottawa and Chippewa Indians of Michigan.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="4">(4) </num> <content>16 percent to the Little Traverse Bay Bands of Odawa Indians of Michigan.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="5">(5) </num> <content>16 percent to the Little River Band of Ottawa Indians of Michigan.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="6">(6) </num> <content>Any funds remaining after distribution pursuant to paragraphs (1) through (5) shall be divided and distributed to each of the recognized tribes listed in this subsection in an amount which bears the same ratio to the amount so divided and distributed as the distribution of judgment funds pursuant to each of paragraphs (2) through (5) bears to the total distribution under all such paragraphs.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num> <heading><inline class="smallCaps">Docket 18-R Judgment Funds</inline>.—</heading> <chapeau>The Secretary shall divide the docket 18-R judgment funds as follows:</chapeau><paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>65 percent to the Sault Ste. Marie Tribe of Chippewa Indians of Michigan.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>35 percent to the Bay Mills Indian Community.</content> </paragraph> </subsection> <page identifier="/us/stat/111/2655">111 STAT. 2655</page> <subsection class="indent0 fontsize10"> <num value="d">(d) </num> <heading><inline class="smallCaps">Amounts for Newly Recognized or Reaffirmed Tribes or Individuals on the Judgment Distribution Roll of Descendants Held in Trust</inline>.—</heading> <content>Pending distribution under this title to newly recognized or reaffirmed tribes described in section 110 or individuals on the judgment distribution roll of descendants, the Secretary shall hold amounts referred to in subsections (a)(1) and (b)(1) in trust.</content> </subsection> </section> <section> <num value="105">SEC. 105. </num> <heading>DEVELOPMENT OF TRIBAL PLANS FOR USE OR DISTRIBUTION OF FUNDS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num> <heading><inline class="smallCaps">Disbursement of Funds</inline>.—</heading> <paragraph class="inline"> <num value="1">(1) </num> <content>Except as provided in paragraphs (2), (3), and (4), the Secretary shall disburse each tribe’s respective share of the judgment funds described in subsections (a), (b), and (c) of section 104 not later than 30 days after a plan for use and distribution of such funds has been approved in accordance with this section. Disbursement of a tribe’s share shall not be dependent upon approval of any other tribe’s plan.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>Section 107 shall be the plan for use and distribution of the judgment funds described in subsections (a)(2)(A), (b)(2)(A), and (c)(2) of section 104. Such plan shall be approved upon the enactment of this Act and such funds shall be distributed by the Secretary to the Bay Mills Indian Community not later than 90 days after the date of the enactment of this Act to be used and distributed in accordance with section 107.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>Section 108 shall be the plan for use and distribution of the judgment funds described in subsections (a)(2)(B), (b)(2)(B), and (c)(1) of section 104. Such plan shall be approved upon the enactment of this Act and such funds shall be distributed by the Secretary to the Sault Ste. Marie Tribe of Chippewa Indians of Michigan not later than 90 days after the date of the enactment of this Act to be used and distributed in accordance with section 108.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="4">(4) </num> <content>Section 109 shall be the plan for use and distribution of the judgment funds described in subsections (a)(3) and (b)(3) of section 104. Such plan shall be approved upon the enactment of this Act and such funds shall be distributed by the Secretary to the Grand Traverse Band of Ottawa and Chippewa Indians of Michigan, not later than 90 days after the date of the enactment of this Act to be used and distributed in accordance with section 109.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <heading><inline class="smallCaps">Approval or Comment of Secretary</inline>.—</heading> <paragraph class="inline"> <num value="1">(1) </num> <content>Except as otherwise provided in this title, each tribe shall develop a plan for the use and distribution of its respective share of the judgment funds. The tribe shall hold a hearing or general membership meeting on its proposed plan. The tribe shall submit to the Secretary its plan together with an accompanying resolution of its governing body accepting such plan, a transcript of its hearings or meetings in which the plan was discussed with its general membership, any documents circulated or made available to the membership on the proposed plan, and comments from its membership received on the proposed plan.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <chapeau>Not later than 90 days after a tribe makes its submission under paragraph (1), the Secretary shall—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>if the plan complies with the provisions of section 3(b) of the Indian Tribal Judgment Funds Use or Distribution Act (25 U.S.C. 1403(b)), approve the plan; or</content> </subparagraph> <page identifier="/us/stat/111/2656">111 STAT. 2656</page> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>if the plan does not comply with the provisions of section 3(h) of the Indian Tribal Judgment Funds Use or Distribution Act (25 U.S.C. 1403(b)), return the plan to the tribe with comments advising the tribe why the plan does not comply with such provisions.</content> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num> <heading><inline class="smallCaps">Response by Tribe</inline>.—</heading> <content>The tribe shall have 60 days after receipt of comments under subsection (b)(2), or other time as the tribe and the Secretary agree upon, in which to respond to such comments and make such response by submitting a revised plan to the Secretary.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num> <heading><inline class="smallCaps">Submission to Congress</inline>—</heading> <paragraph class="inline"> <num value="1">(1) </num> <content>The Secretary shall, within 45 days after receiving the governing body’s comments under subsection (c), submit a plan to Congress in accordance with the provisions of section 3(b) of the Indian Tribal Judgment Funds Use or Distribution Act (25 U.S.C. 1403(b)). If the tribe does not submit a response pursuant to subsection (c), the Secretary shall, not later than 45 days after the end of the response time for such a response, submit a plan to Congress in accordance with the provisions of section 3(b) of the Indian Tribal Judgment Funds Use or Distribution Act (25 U.S.C. 1403(b)).</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>If a tribe does not submit a plan to the Secretary within 8 years of the date of enactment of this Act, the Secretary shall approve a plan which complies with the provisions of section 3(b) of the Indian Tribal Judgment Funds Use or Distribution Act (25 U.S.C. 1403(b)).</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num> <heading><inline class="smallCaps">Governing Law After Approval by Secretary</inline>.—</heading> <content>Once approved by the Secretary under this title, the effective date of the plan and other requisite action, if any, is determined by the provisions of section 5 of the Indian Tribal Judgment Funds Use or Distribution Act (25 U.S.C. 1405).</content> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num> <heading><inline class="smallCaps">Hearings Not Required</inline>.—</heading> <content>Notwithstanding section 3 and section 4 of the Indian Tribal Judgment Funds Use or Distribution Act (25 U.S.C. 1403 and 25 U.S.C. 1404), the Secretary shall not be required to hold hearings or submit transcripts of any hearings held previously concerning the Indian judgments which are related to the judgment funds. The Secretary’s submission of the plan pursuant to this title shall comply with section 4 of the Indian Tribal Judgment Funds Use or Distribution Act (25 U.S.C. 1404).</content> </subsection> </section> <section> <num value="106">SEC. 106. </num> <heading>PREPARATION OF JUDGMENT DISTRIBUTION ROLL OF DESCENDANTS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num> <heading><inline class="smallCaps">Preparation</inline>.—</heading> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading> <chapeau>The Secretary shall prepare, in accordance with parts 61 and 62 of title 25, Code of Federal Regulations, a judgment distribution roll of all citizens of the United States who—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>were born on or before the date of enactment of this Act;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>were living on the date of the enactment of this Act;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">(C) </num> <content>are of at least one-quarter Michigan Ottawa or Chippewa Indian blood, or a combination thereof;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="D">(D) </num> <content>are not members of the tribal organizations listed in section 104;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="E">(E) </num> <content>are lineal descendants of the Michigan Ottawa or Chippewa bands or tribes that were parties to either <page identifier="/us/stat/111/2657">111 STAT. 2657</page>the 1820 treaty (7 Stat. 207), the 1836 treaty (7 Stat. 491), or the 1855 treaty (11 Stat. 621);</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="F">(F) </num> <content>are lineal descendants of at least one of the groups described in subsection (d); and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="G">(G) </num> <content>are not described in subsection (e).</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <heading><inline class="smallCaps">Time limitations</inline>.—</heading> <chapeau>The judgment distribution roll of descendants prepared pursuant to paragraph (1)—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>shall not be approved before 8 years after the date of the enactment of this Act or a final determination has been made regarding each petition filed pursuant to section 110, whichever is earlier; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>shall be approved not later than 9 years after the date of the enactment of this Act.</content> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <heading><inline class="smallCaps">Applications</inline>.—</heading> <content>Applications for inclusion on the judgment distribution roll of descendants must be filed with the superintendent, Michigan agency, Bureau of Indian Affairs, Sault Ste. Marie, Michigan, not later than 1 year after the date of enactment of this Act.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num> <heading><inline class="smallCaps">Appeals</inline>.—</heading> <content>Appeals arising under this section shall be handled in accordance with parts 61 and 62 of title 25, Code of Federal Regulations.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num> <heading><inline class="smallCaps">Groups</inline>.—</heading> <chapeau>The groups referred to in subsection (a)(1)(F) are Chippewa or Ottawa tribe or bands of—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>Grand River, Traverse, Grand Traverse, Little Traverse, Maskigo, or L’Arbre Croche, Cheboigan, Sault Ste. Marie, Michilmackinac; and</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>any subdivisions of any groups referred to in paragraph (1).</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num> <heading><inline class="smallCaps">Ineligible Individuals</inline>.—</heading> <chapeau>An individual is not eligible under this section, if that individual—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>received benefits pursuant to the Secretarial Plan effective July 17, 1983, for the use and distribution of Potawatomi judgment funds;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>received benefits pursuant to the Secretarial Plan effective November 12, 1977, for the use and distribution of Saginaw Chippewa judgment funds;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>is a member of the Keweenaw Bay Chippewa Indian Community of Michigan on the date of the enactment of this Act;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="4">(4) </num> <content>is a member of the Lac Vieux Desert Band of Lake Superior Chippewa Indians on the date of the enactment of this Act; or</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="5">(5) </num> <content>is a member of a tribe whose membership is predominantly Potawatomi.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num> <heading><inline class="smallCaps">Use of Horace B. Durant Roll</inline>.—</heading> <content>In preparing the judgment distribution roll of descendants under this section, the Secretary shall refer to the Horace B. Durant Roll, approved February 18, 1910, of the Ottawa and Chippewa Tribe of Michigan, as qualified and corrected by other rolls and records acceptable to the Secretary, including the Durant Field Notes of 1908-1909 and the Annuity Payroll of the Ottawa and Chippewa Tribe of Michigan approved May 17, 1910. The Secretary may employ the services of the descendant group enrollment review committees.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="g">(g) </num> <heading><inline class="smallCaps">Payment of Funds</inline>.—</heading> <chapeau>Subject to section 110, not later than 90 days after the approval by the Secretary of the judgment distribution roll of descendants prepared pursuant to this section, the Secretary shall distribute per capita the funds described in <page identifier="/us/stat/111/2658">111 STAT. 2658</page>subsections (a)(1) and (b)(1) of section 104 to the individuals listed on that judgment distribution roll of descendants. Payment under this section—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>to which a living, competent adult is entitled under this title shall be paid directly to that adult;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>to which a deceased individual is entitled under this title shall be paid to that individual’s heirs and legatees upon determination of such heirs and legatees in accordance with regulations prescribed by the Secretary; and</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>to which a legally incompetent individual or an individual under 18 years of age is entitled under this title shall be paid in accordance with such procedures (including the establishment of trusts) as the Secretary determines to be necessary to protect and preserve the interests of that individual.</content> </paragraph> </subsection> </section> <section> <num value="107">SEC. 107. </num> <heading>PLAN FOR USE AND DISTRIBUTION OF BAY MILLS INDIAN COMMUNITY FUNDS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num> <heading><inline class="smallCaps">Tribal Land Trust</inline>.—</heading> <paragraph class="inline"> <num value="1">(1) </num> <content>The Executive Council of the Bay Mills Indian Community shall establish a nonexpendable trust to be known as the “Land Trust”. Not later than 60 days after receipt of the funds distributed to the Bay Mills Indian Community pursuant to this title, the Executive Council of the Bay Mills Indian Community shall deposit 20 percent of the share of the Bay Mills Indian Community into the Land Trust.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>The Executive Council shall be the trustee of the Land Trust and shall administer the Land Trust in accordance with this section. The Executive Council may retain or hire a professional trust manager and may pay the prevailing market rate for such services. Such payment for services shall be made from the current income accounts of the trust and charged against earnings of the current fiscal year.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>The earnings generated by the Land Trust shall be used exclusively for improvements on tribal land or the consolidation and enhancement of tribal landholdings through purchase or exchange. Any land acquired with funds from the Land Trust shall be held as Indian lands are held.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="4">(4) </num> <content>The principal of the Land Trust shall not be expended for any purpose, including but not limited to, per capita payment to members of the Bay Mills Indian Community.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="5">(5) </num> <content>The Land Trust shall be maintained as a separate account, which shall be audited at least once during each fiscal year by an independent certified public accountant who shall prepare a report on the results of such audit. Such report shall be a public document, and shall be available for inspection by any member of the Bay Mills Indian Community.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="6">(6) </num> <content>Notwithstanding any other provision of law, the approval of the Secretary of any payment from the Land Trust shall not be required and the Secretary shall have no trust responsibility for the investment, supervision, administration, or expenditure of funds from the Land Trust.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <heading><inline class="smallCaps">Land Claims Distribution Trust</inline>.—</heading> <paragraph class="inline"> <num value="1">(1) </num> <chapeau>The Executive Council of the Bay Mills Indian Community shall establish a nonexpendable trust to be known as the “Land Claims Distribution Trust Fund”. Not later than 60 days after receipt of the funds distributed to the Bay Mills Indian Community pursuant to this title, the Executive Council of the Bay Mills Indian Community <page identifier="/us/stat/111/2659">111 STAT. 2659</page>shall deposit into the Land Claims Distribution Trust Fund the principal funds which shall consist of—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>amounts remaining of the funds distributed to the Bay Mills Indian Community after distribution pursuant to subsections (a) and (c);</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>10 percent of the annual earnings generated by the Land Claims Distribution Trust Fund; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">(C) </num> <content>such other funds which the Executive Council chooses to add to the Land Claims Distribution Trust Fund.</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>The Executive Council shall be the trustee of the Land Claims Distribution Trust Fund and shall administer the Land Claims Distribution Trust Fund in accordance with this section. The Executive Council may retain or hire a professional trust manager and may pay for said services the prevailing market rate. Such payment for services shall be made from the current income accounts of the trust and charged against earnings of the current fiscal year.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <chapeau>90 percent of the annual earnings of the Land Claims Distribution Trust Fund shall be distributed on October 1 of each year after the creation of the trust fund to any person who—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>is enrolled as a member of the Bay Mills Indian Community;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>is at least 55 years of age as of the annual distribution date; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">(C) </num> <clause class="inline"> <num value="i">(i) </num> <content>has been enrolled as a member of the Bay Mills Indian Community for a minimum of 25 years as of the annual distribution date, or</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">(ii) </num> <content>was adopted as a member of the Bay Mills Indian Community on or before June 30, 1996.</content> </clause> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="4">(4) </num> <content>In the event that a member of the Bay Mills Indian Community who is eligible for payment under subsection (b)(3), should die after preparation of the annual distribution roll and prior to the October 1 distribution, that individual’s share for that year shall be provided to the member’s heirs at law.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="5">(5) </num> <content>In the event that a member of the Bay Mills Indian Community who is at least 55 years of age and who is eligible for payment under subsection (b)(3), shall have a guardian appointed for said individual, such payment shall be made to the guardian.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="6">(6) </num> <content>Under no circumstances shall any part of the principal of the Land Claims Distribution Trust Fund be distributed as a per capita payment to members of the Bay Mills Indian Community, or used or expended for any other purpose by the Executive Council.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="7">(7) <sidenote><p class="firstIndent1 fontsize8">Reports.</p></sidenote></num> <content>The Land Claims Distribution Trust Fund shall be maintained as a separate account, which shall be audited at least once during each fiscal year by an independent certified public accountant who shall prepare a report on the results of such audit. Such report shall be a public document and shall be available for inspection by any member of the Bay Mills Indian Community.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="8">(8) </num> <content>Notwithstanding any other provision of law, the approval of the Secretary of any payment from the Land Claims Distribution Trust Fund shall not be required and the Secretary shall have no trust responsibility for the investment, supervision, administration, or expenditure of the Fund.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num> <heading><inline class="smallCaps">Land Claims Initial Payment</inline>.—</heading> <chapeau>As compensation to the members of the Bay Mills Indian Community for the delay in distribution of the judgment fund, payment shall be made by the <page identifier="/us/stat/111/2660">111 STAT. 2660</page>Executive Council within 30 days of receipt of the Bay Mills Indian Community’s share of the judgment fund from the Secretary, as follows:</chapeau><paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>The sum of $3,000 to each enrolled member of the Bay Mills Indian Community living on the date of enactment of this legislation, who has attained the age of 55 years, but is less than 62 years of age, if that individual was adopted into or a member of the Bay Mills Indian Community on or before June 30, 1996.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>The sum of $5,000 to each enrolled member of the Bay Mills Indian Community living on the date of enactment of this legislation, who is at least 62 years of age and less than and 70 years of age, if that individual was adopted into or a member of the Bay Mills Indian Community on or before June 30, 1996.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>The sum of $10,000 to each enrolled member of the Bay Mills Indian Community living on the date of enactment of this legislation, who is 70 years of age or older, if that individual was adopted into or a member of the Bay Mills Indian Community on or before June 30, 1996.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num> <heading><inline class="smallCaps">Annual Payments From Land Claims Distribution Trust Fund</inline>.—</heading> <chapeau>The Executive Council shall prepare the annual distribution roll and ensure its accuracy prior to August 30 of each year prior to distribution. The distribution roll shall identify each member of the Bay Mills Indian Community who, on the date of distribution, will have attained the minimum age and membership duration required for distribution eligibility, as specified in subsection (b)(3). The number of eligible persons in each age category defined in this subsection, multiplied by the number of shares for which the age category is entitled, added together for the 3 categories, shall constitute the total number of shares to be distributed each year. On each October 1, the shares shall be distributed as follows:</chapeau><paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>Each member who is at least 55 years of age and less than 62 years of age shall receive 1 share.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>Each member who is between the ages of 62 and 69 years shall receive 2 shares.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>Each member who is 70 years of age or older shall receive 3 shares.</content> </paragraph> </subsection> </section> <section> <num value="108">SEC. 108. </num> <heading>PLAN FOR USE OF SAULT STE. MARIE TRIBE OF CHIPPEWA INDIANS OF MICHIGAN FUNDS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num> <heading><inline class="smallCaps">Self-Sufficiency Fund</inline>.—</heading> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <chapeau>The Sault Ste. Marie Tribe of Chippewa Indians of Michigan (referred to in this section as the “Sault Ste. Marie Tribe”), through its board of directors, shall establish a trust fund for the benefit of the Sault Ste. Marie Tribe which shall be known as the “Self-Sufficiency Fund”. The principal of the Self-Sufficiency Fund shall consist of—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>the Sault Ste. Marie Tribe’s share of the judgment funds transferred by the Secretary to the board of directors pursuant to subsection (e);</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>such amounts of the interest and other income of the Self-Sufficiency Fund as the board of directors may choose to add to the principal; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">(C) </num> <content>any other funds that the board of directors of the Sault Ste. Marie Tribe chooses to add to the principal.</content> </subparagraph> <page identifier="/us/stat/111/2661">111 STAT. 2661</page> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>The board of directors shall be the trustee of the Self-Sufficiency Fund and shall administer the Fund in accordance with the provisions of this section.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <heading><inline class="smallCaps">Use of Principal</inline>.—</heading> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <chapeau>The principal of the Self-Sufficiency Fund shall be used exclusively <i>for</i> investments or expenditures which the board of directors determines—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <chapeau>are reasonably related to—</chapeau> <clause class="indent3 fontsize10"> <num value="i">(i) </num> <content>economic development beneficial to the tribe; or</content> </clause> <clause class="indent3 fontsize10"> <num value="ii">(ii) </num> <content>development of tribal resources;</content> </clause> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>are otherwise financially beneficial to the tribe and its members; or</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">(C) </num> <content>will consolidate or enhance tribal landholdings.</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>At least one-half of the principal of the Self-Sufficiency Fund at any given time shall be invested in investment instruments or funds calculated to produce a reasonable rate of return without undue speculation or risk.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>No portion of the principal of the Self-Sufficiency Fund shall be distributed in the form of per capita payments.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="4">(4) </num> <content>Any lands acquired using amounts from the Self-Sufficiency Fund shall be held as Indian lands are held.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num> <heading><inline class="smallCaps">Use of Self-Sufficiency Fund Income</inline>.—</heading> <chapeau>The interest and other investment income of the Self-Sufficiency Fund shall be distributed—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>as an addition to the principal of the Fund;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>as a dividend to tribal members;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>as a per capita payment to some group or category of tribal members designated by the board of directors;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="4">(4) </num> <content>for educational, social welfare, health, cultural, or charitable purposes which benefit the members of the Sault Ste. Marie Tribe; or</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="5">(5) </num> <content>for consolidation or enhancement of tribal lands.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num> <heading><inline class="smallCaps">General Rules and Procedures</inline>.—</heading> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>The Self-Sufficiency Fund shall be maintained as a separate account.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>The books and records of the Self-Sufficiency Fund shall be audited at least once during each fiscal year by an independent certified public accountant who shall prepare a report on the results of such audit. Such report shall be treated as a public document of the Sault Ste. Marie Tribe and a copy of the report shall be available for inspection by any enrolled member of the Sault Ste. Marie Tribe.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num> <heading><inline class="smallCaps">Transfer of Judgment Funds to Self-Sufficiency Fund</inline>.—</heading> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>The Secretary shall transfer to the Self-Sufficiency Fund the share of the funds which have been allocated to the Sault Ste. Marie Tribe pursuant to section 104.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>Notwithstanding any other provision of law, after the transfer required by paragraph (1) the approval of the Secretary for any payment or distribution from the principal or income of the Self-Sufficiency Fund shall not be required and the Secretary shall have no trust responsibility for the investment, administration, or expenditure of the principal or income of the Self-Sufficiency Fund.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num> <heading><inline class="smallCaps">Lands Acquired Using Interest or Other Income of the Self-Sufficiency Fund</inline>.—</heading> <content>Any lands acquired using amounts <page identifier="/us/stat/111/2662">111 STAT. 2662</page>from interest or other income of the Self-Sufficiency Fund shall be held in trust by the Secretary for the benefit of the tribe.</content> </subsection> </section> <section> <num value="109">SEC. 109. </num> <heading>PLAN FOR USE OF GRAND TRAVERSE BAND OF OTTAWA AND CHIPPEWA INDIANS OF MICHIGAN FUNDS.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num> <heading><inline class="smallCaps">Land Claims Distribution Trust Fund</inline>.—</heading> <paragraph class="inline"> <num value="1">(1) </num> <content>The share of the Grand Traverse Band of Ottawa and Chippewa Indians of Michigan (hereafter in this section referred to as the “Band”), as determined pursuant to subsections (a)(3) and (b)(3) of section 104, shall be deposited by the Secretary in a nonexpendable trust fund to be established by the Tribal Council of the Band to be known as the “Land Claims Distribution Trust Fund” (hereafter in this section referred to as the “Trust Fund”).</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <chapeau>The principal of the Trust Fund shall consist of—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>the funds deposited into the Trust Fund by the Secretary pursuant to this subsection;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>annual earnings of the Trust Fund which shall be retained, and added to the principal; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">(C) </num> <content>such other funds as may be added to the Trust Fund by action of the Tribal Council of the Band.</content> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <heading><inline class="smallCaps">Management of the Trust Fund</inline>.—</heading><content>The Tribal Council of the Band shall be the trustee of the Trust Fund and shall administer the Fund in accordance with this section. In carrying out this responsibility, the Tribal Council may retain or hire a professional trust manager and may pay the prevailing market rate for such services. Such payment for services shall be made from the current income accounts of the Trust Fund and charged against the earnings of the fiscal year in which the payment becomes due.</content></subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num> <heading><inline class="smallCaps">Trust Fund as Loan Collateral</inline>.—</heading> <paragraph class="inline"> <num value="1">(1) </num> <content>The Trust Fund shall be used by the Band as collateral to secure a bank loan equal to 80 percent of the principal of the Trust Fund at the lowest interest rate then available. Such loan shall be used by the Band to make a one-time per capita payment to all eligible members.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>The loan secured pursuant to this subsection shall be amortized by the earnings of the Trust Fund. The Tribal Council of the Band shall have the authority to invest the principal of the Trust Fund on market risk principles that will ensure adequate payments of the debt obligation while at the same time protecting the principal.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num> <heading><inline class="smallCaps">Elders’ Land Claim Distribution Trust Fund</inline>.—</heading> <paragraph class="inline"> <num value="1">(1) </num> <content>Upon the retirement of the loan obtained pursuant to subsection (c), the Tribal Council shall establish the Grand Traverse Band Elders’ Land Claims Distribution Trust Fund (hereafter in this section referred to as the “Elders’ Trust Fund”). There shall be deposited into the Elders’ Trust Fund the principal and all accrued earnings that are in the Land Claims Distribution Trust Fund on the date of retirement of such loan.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <chapeau>Upon establishment of the Elders’ Trust Fund, the Tribal Council of the Band shall make a one-time payment to any person who is living on the date of the establishment of the Elders’ Trust Fund, and who was an enrolled member of the Band for at least 2 years prior to the date of the enactment of this Act as follows:</chapeau><subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>$500 for each member who has attained the age of 55 years, but is less than 62 years of age.</content> </subparagraph> <page identifier="/us/stat/111/2663">111 STAT. 2663</page> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>$1,000 for each member who has attained the age of 62 years, but is less than 70 years of age.</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(C) </num> <content>$2,500 for each member who is 70 years of age or older.</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <chapeau>After distribution pursuant to paragraph (2), the net annual earnings of the Elders’ Trust Fund shall be distributed as follows:</chapeau><subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>90 percent shall be distributed on October 1 of each year after the creation of the Elder’s Trust Fund to all living enrolled members of the Band who have attained the age of 55 years upon such date, and who shall have been an enrolled member of the Band for not less than 2 years upon such date.</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>10 percent shall be added to the principal of the Elders’ Trust Fund.</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="4">(4) </num> <chapeau>Distribution pursuant to paragraph (3)(A) shall be as follows:</chapeau><subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>One share for each person on the current annual Elders’ roll who has attained the age of 55 years, but is less than 62 years of age.</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>Two shares for each person who has attained the age of 62 years, but is less than 70 years of age.</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">(C) </num> <content>Three shares for each person who is 70 years of age or older.</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="5">(5) </num> <content>None of the funds in the Elders’ Trust Fund shall be distributed or expended for any purpose other than as provided in this subsection.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="6">(6) </num> <content>The Elders’ Trust Fund shall be maintained as a separate account, which shall be audited at least once during each fiscal year by an independent certified public accountant who shall prepare a report on the results of such audit. Such report shall be reasonably available for inspection by the members of the Band.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="7">(7) </num> <content>The Tribal Council of the Band shall prepare an annual Elders’ distribution roll and ensure its accuracy prior to August 30 of each year. The roll shall identify each member of the Band who has attained the minimum age and membership duration required for distribution eligibility pursuant to paragraph (3)(A).</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num> <heading><inline class="smallCaps">General Provisions</inline>.—</heading> <paragraph class="inline"> <num value="1">(1) </num> <content>In the event that a tribal member eligible for a payment under this section shall die after preparation of the annual distribution roll, but prior to the distribution date, such payment shall be paid to the estate of such member.</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>In any case where a legal guardian has been appointed for a person eligible for a payment under this section, payment of that person’s snare shall be made to such guardian.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="f">(f) </num> <heading><inline class="smallCaps">No Secretarial Responsibilities for Trust Fund</inline>.—</heading> <content>The Secretary shall have no trust responsibility for the investment, supervision, administration, or expenditure of the Land Claims Distribution Trust Fund or the Elders’ Trust Fund.</content> </subsection> </section> <section> <num value="110">SEC. 110. </num> <heading>PAYMENT TO NEWLY RECOGNIZED OR REAFFIRMED TRIBES.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num> <heading><inline class="smallCaps">Eligibility</inline>.—</heading> <chapeau>In order to be eligible for tribal funds under this Act, a tribe that is not federally recognized or reaffirmed on the date of the enactment of this Act—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>must be a signatory to either the 1836 treaty (7 Stat. 491) or the 1855 treaty (11 Stat. 621);</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>must have a membership that is predominantly Chippewa and Ottawa;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>shall not later than 6 months after the date of the enactment of this Act, submit to the Bureau of Indian Affairs <page identifier="/us/stat/111/2664">111 STAT. 2664</page>a letter of intent for Federal recognition if such a letter is not on file with the Bureau of Indian Affairs; and</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="4">(4) </num> <content>shall not later than 3 years after the date of the enactment of this Act, submit to the Bureau of Indian Affairs a documented petition for Federal recognition if such a petition is not on file with the Bureau of Indian Affairs.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <heading><inline class="smallCaps">Distribution of Funds Allotted for Newly Recognized OR Reaffirmed Tribes</inline>.—</heading> <content>Not later than 90 days after a tribe that has submitted a timely petition pursuant to subsection (a) is federally recognized or reaffirmed, the Secretary shall segregate and hold in trust for such tribe, its respective share of the funds described in sections 104(a)(1) and (b)(1), $3,000,000 plus 30 percent of any income earned on the funds described in section 104(a)(1) and (b)(1) up to the date of such distribution.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num> <heading><inline class="smallCaps">Distribution of Funds Allotted for Certain Individuals</inline>.—</heading> <content>If, after the date of the enactment of this Act and before approval by the Secretary of the judgment distribution roll of descendants, Congress or the Secretary recognizes a tribe which has as a member an individual that is listed on the judgment distribution roll of descendants as approved pursuant to section 106, the Secretary shall, not later than 90 days after the approval of such judgment distribution roll of descendants, remove that individual’s name from the descendants roll and reallocate the funds allotted for that individual to the fund established for such newly recognized or reaffirmed tribe.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="d">(d) </num> <heading><inline class="smallCaps">Funds Subject to Plan</inline>.—</heading> <content>Funds held in trust for a newly recognized or reaffirmed tribe shall be subject to plans that are approved in accordance with this title.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="e">(e) </num> <heading><inline class="smallCaps">Determination of Membership in Newly Recognized or Reaffirmed Tribe</inline>.—</heading> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <heading><inline class="smallCaps">Submission of membership roll</inline>.—</heading> <chapeau>For purposes of this section—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>if the tribe is acknowledged by the Secretary under part 83 of title 25, Code of Federal Regulations, the Secretary shall use the tribe’s most recent membership list provided under such part;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>unless otherwise provided by the statutes which recognizes the tribe, if Congress recognizes a tribe, the Secretary shall use the most recent membership list provided to Congress. If no membership list is provided to Congress, the Secretary shall use the most recent membership list provided with the tribe’s petition for acknowledgment under part 83 of title 25, Code of Federal Regulations. If no such list was provided to Congress or under such part, the newly recognized tribe shall submit a membership list to the Secretary before the judgment distribution roll of descendants is approved or the judgment funds shall be distributed per capita pursuant to section 106;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">(C) </num> <content>a tribe that has submitted a membership roll pursuant to this section may update its membership rolls not later than 180 days before distribution pursuant to section 106.</content> </subparagraph> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <heading><inline class="smallCaps">Failure to submit updated membership roll</inline>.—</heading> <chapeau>If a membership list was not provided—</chapeau> <subparagraph class="indent2 fontsize10"> <num value="A">(A) </num> <content>to the Secretary, the Secretary will use the tribe’s most recent membership list provided to the Bureau of Indian Affairs in their petition for Federal acknowledgment <page identifier="/us/stat/111/2665">111 STAT. 2665</page>filed under part 83 of title 25, Code of Federal Regulations, unless otherwise provided in the statute which recognized the tribe;</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="B">(B) </num> <content>to the Bureau of Indian Affairs, the newly recognized or reaffirmed tribe shall submit a membership list before the judgment distribution roll of descendants is approved by the Secretary, unless otherwise provided in the statute which recognized the tribe; and</content> </subparagraph> <subparagraph class="indent2 fontsize10"> <num value="C">(C) </num> <content>before the judgment distribution roll of descendants is approved, the judgment funds shall be distributed per capita pursuant to section 106.</content> </subparagraph> </paragraph> </subsection> </section> <section> <num value="111">SEC. 111. </num> <heading>TREATMENT OF FUNDS IN RELATION TO OTHER LAWS.</heading> <chapeau>The eligibility for or receipt of distributions under this Act by a tribe or individual shall not be considered as income, resources, or otherwise when determining the eligibility for or computation of any payment or other benefit to such tribe, individual, or household under—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>any financial aid program of the United States, including grants and contracts subject to the Indian Self-Determination Act; or</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>any other benefit to which such tribe, household, or individual would otherwise be entitled under any Federal or federally assisted program.</content> </paragraph> </section> <section> <num value="112">SEC. 112. </num> <heading>TREATIES NOT AFFECTED.</heading> <content>No provision of this Act shall be construed to constitute an amendment, modification, or interpretation of any treaty to which a tribe mentioned in this Act is a party nor to any right secured to such a tribe or to any other tribe by any treaty.</content> </section> <num value="II">TITLE II—</num> <heading>LIMITATION ON HEALTH CARE CONTRACTS AND COMPACTS FOR THE KETCHIKAN GATEWAY BOROUGH</heading> <section> <num value="201">SEC. 201. </num> <heading>FINDINGS.</heading> <chapeau>Congress finds that—</chapeau> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>the execution of more than 1 contract or compact between an Alaska Native village or regional or village corporation in the Ketchikan Gateway Borough and the Secretary to provide for health care services in an area with a small population leads to duplicative and wasteful administrative costs; and</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>incurring the wasteful costs referred to in paragraph (1) leads to decrease in the quality of health care that is provided to Alaska Natives in an affected area.</content> </paragraph> </section> <section> <num value="202">SEC. 202. </num> <heading>DEFINITIONS.</heading> <chapeau>In this title:</chapeau><paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <heading><inline class="smallCaps">Alaska native</inline>.—</heading> <content>The term “Alaska Native” has the meaning given the term “Native” in section 3(b) of the Alaska Native Claims Settlement Act (43 U.S.C. 1602(b)).</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <heading><inline class="smallCaps">Alaska native village or regional or village corporation</inline>.—</heading> <content>The term “Alaska Native village or regional <page identifier="/us/stat/111/2666">111 STAT. 2666</page>or village corporation” means an Alaska Native village or regional or village corporation defined in, or established pursuant to the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.).</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <heading><inline class="smallCaps">Contract; compact</inline>.—</heading> <content>The terms “contract” and “compact” mean a self-determination contract and a self-governance compact as these terms are defined in the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450 et seq.).</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="4">(4) </num> <heading><inline class="smallCaps">Secretary</inline>.—</heading> <content>The term “Secretary” means the Secretary of Health and Human Services.</content> </paragraph> </section> <section> <num value="203">SEC. 203. </num> <heading>LIMITATION.</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading> <content>The Secretary shall take such action as may be necessary to ensure that, in considering a renewal of a contract or compact, or signing of a new contract or compact for the provision of health care services in the Ketchikan Gateway Borough, there will be only one contract or compact in effect.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <heading><inline class="smallCaps">Consideration</inline>.—</heading> <chapeau>In any case in which the Secretary, acting through the Director of the Indian Health Service, is required to select from more than 1 application for a contract or compact described in subsection (a), in awarding the contract or compact, the Secretary shall take into consideration—</chapeau> </subsection> <paragraph class="indent1 fontsize10"> <num value="1">(1) </num> <content>the ability and experience of the applicant;</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="2">(2) </num> <content>the potential for the applicant to acquire and develop the necessary ability; and</content> </paragraph> <paragraph class="indent1 fontsize10"> <num value="3">(3) </num> <content>the potential for growth in the health care needs of the covered borough.</content> </paragraph> </section> Approved December 15, 1997.
LEGISLATIVE HISTORY—H R. 1604: HOUSE REPORTS: No. 105–352 (Comm, on Resources). CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 4, considered and passed House.

Nov. 9, considered and passed Senate, amended.

Nov. 13, House concurred in certain Senate amendments and disagreed to another amendment. Senate receded from its amendment.

 Public Law 105–144: To authorize acquisition of certain real property for the Library of Congress, andfor other purposes. Public Law 144 Public Law 105–144 111 Stat. 2667 1997-12-15 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105 public 111 STAT. 2667 Public Law 105–144 105th Congress
An Act To authorize acquisition of certain real property for the Library of Congress, andfor other purposes.

Dec. 15, 1997

[H.R. 2979]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. ACQUISITION OF FACILITY IN CULPEPER, VIRGINIA.

USC 141 note.

 (a) Acquisition.— The Architect of the Capitol may acquire on behalf of the United States Government by transfer of title, without reimbursement or transfer of funds, the following property: (1) Three parcels totaling approximately 41 acres, more or less, located in Culpeper County, Virginia, and identified as Culpeper County Tax Parcel Numbers 51–80B, 51–80C, and 51–80D, further described as real estate (consisting of 15.949 acres) conveyed to Federal Reserve Bank of Richmond by deed from Russell H. Inskeep and Jean H. Inskeep, his wife, dated October 1, 1964, and recorded October 7, 1964, in the Clerk’s Office, Circuit Court of Culpeper County, Virginia, in Deed Book 177, page 431, and real estate (consisting of 20.498 acres and consisting of 4.502 acres) conveyed to Federal Reserve Bank of Richmond by deed from Russell H. Inskeep and Jean H. Inskeep, his wife, dated November 11, 1974, and recorded November 12, 1974, in the Clerk’s Office, Circuit Court of Culpeper County, Virginia, in Deed Book 247, page 246. (2) Improvements to such real property. (b) Uses.— Effective on the date on which the Architect of the Capitol acquires the property under subsection (a), such property shall be available to the Librarian of Congress for use as a national audiovisual conservation center.
SEC. 2. LIBRARY BUILDINGS AND GROUNDS. Section 11 of the Act entitled “An Act relating the policing of the buildings of the Library of Congress” approved August 4, 1950 (2 U.S.C. 167(j)), is amended by adding at the end the following

2 USC 141 note, 167j.

new subsection: “(d) For the purposes of this Act, the term ‘Library of Congress buildings and grounds’ shall include the following property: “(1) Three parcels totaling approximately 41 acres, more or less, located in Culpeper County, Virginia, and identified as Culpeper County Tax Parcel Numbers 51–80B, 51–80C, and 51–80D, further described as real estate (consisting of 15.949 acres) conveyed to Federal Reserve Bank of Richmond by deed from Russell H. Inskeep and Jean H. Inskeep, his wife, dated October 1, 1964, and recorded October 7, 1964, in the Clerk’s Office, Circuit Court of Culpeper County, Virginia, in Deed 111 STAT. 2668Book 177, page 431; and real estate (consisting of 20.498 acres and consisting of 4.502 acres) conveyed to Federal Reserve Bank of Richmond by deed from Russell H. Inskeep and Jean H. Inskeep, his wife, dated November 11, 1974, and recorded November 12, 1974, in the Clerk’s Office, Circuit Court of Culpeper County, Virginia, in Deed Book 247, page 246. “(2) Improvements to such real property.”.
SEC. 3.

2 USC 141 note.

 ACCEPTANCE OF TRANSFERRED GIFTS OR TRUST FUNDS. Gifts or trust funds given to the Library or the Library of Congress Trust Fund Board for the structural and mechanical work and refurbishment of Library buildings and grounds specified in section 1 shall be transferred to the Architect of the Capitol to be spent in accordance with the provisions of the first section of the Act of June 29, 1922 (2 U.S.C. 141).
SEC. 4.

2 USC 141 note.

 FUND FOR TRANSFERRED FUNDS. There is established in the Treasury of the United States a fund consisting of those gifts or trust binds transferred to the Architect of the Capitol under section 3. Upon prior approval of the Committee on House Oversight of the House of Representatives and Committee on Rules and Administration of the Senate, amounts in the fund shall be available to the Architect of the Capitol, subject to appropriation, to remain available until expended, for the structural and mechanical work and refurbishment of Library buildings and grounds. Such funds shall be available for expenditure in fiscal year 1998, subject to the prior approval of the Committee on House Oversight of the House of Representatives and the Committee on Rules and Administration of the Senate.
SEC. 5.

2 USC 141 note.

 EFFECTIVE DATE. (a) In General.— Except as provided in subsection (b), the provisions of this Act shall take effect on the date of the enactment of this Act. (b) Special Rule for Inclusion of Property Within Library Buildings and Grounds.— The amendment made by section 2 shall take effect upon the acquisition by the Architect of the Capitol of the property described in section 1.
Approved December 15, 1997.
LEGISLATIVE HISTORY—H R. 2979: CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 12, considered and passed House.

Nov. 13, considered and passed Senate.

 Public Law 105–145: Granting the consent of Congress to the Chickasaw Trail Economic Development Compact. Public Law 145 Public Law 105–145 111 Stat. 2669 1997-12-15 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105 public 111 STAT. 2669 Public Law 105–145 105th Congress
Joint Resolution Granting the consent of Congress to the Chickasaw Trail Economic Development Compact.

Dec. 15, 1997

[H.J. Res. 95]

 Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,
The Congress consents to the Chickasaw Trail Economic Development Compact

Tennessee.

Mississippi.

entered into by the State of Tennessee and the State of Mississippi. The compact is substantially as follows: “CHICKASAW TRAIL ECONOMIC DEVELOPMENT COMPACT
“Article I. The purpose of this compact is to promote the development of an undeveloped rural area of Marshall County, Mississippi, and Fayette County, Tennessee (hereinafter referred to as ‘Chickasaw Trail Economic Development Area’), and to create a development authority which incorporates public and private partnerships to facilitate the economic growth of such areas by providing developed sites for the location and construction of manufacturing plants, distribution facilities, research facilities, regional and national offices with supportive services, and facilities, and to establish a joint interstate authority to assist in these efforts.
“Article II. This compact shall become effective immediately whenever the states of Tennessee and Mississippi have ratified it and Congress has given consent thereto.
“Article III. The states which are parties to this compact (hereinafter referred to as ‘party states’) do hereby establish and create a joint agency which shall be known as the Chickasaw Trail Economic Development Authority (hereinafter referred to as the ‘Authority’). The membership of the Authority shall consist of an appointee of the Governor of each party state, each state’s chief economic development official or his/her representative, appointee of each of the member counties board of supervisors/county legislative body, selected from nominees from the county’s industrial development board, and an appointee of the property owners’ group. The appointive members of the authority shall serve for terms of four (4) years. Vacancies on the Authority shall be filled by appointment by the Governor or the appropriate appointing authority for the unexpired part of the term. The members of the Authority shall serve without compensation or reimbursement of expenses. The members of the Authority shall hold regular quarterly meetings and such special meetings as its business may require. They shall choose annually a chairman and vice-chairman from among their members, and the chairmanship shall rotate each year between the party states. The secretary of the Authority 111 STAT. 2670(hereinafter provided for) shall notify each member in writing of all meetings of the Authority in such a manner and under such rules and regulations as the Authority may prescribe. The Authority shall adopt rules and regulations for the transaction of its business; and the secretary shall keep a record of all its business, and shall furnish a copy thereof to each member of the Authority. It shall be the duty of the Authority in general, to promote, encourage and coordinate the efforts of the party states to secure the development of the Chickasaw Trail Economic Development Authority. Toward this end, the authority shall have power to hold hearings; to conduct studies and surveys of all problems, benefits and other matters associated with the development of the Chickasaw Trail Economic Development Area and to make reports thereon; to acquire, by gift or otherwise, and hold and dispose of such money and property as may be provided for the proper performance of their functions; to cooperate with other public or private groups, whether local, state, regional or national, having an interest in economic development; to formulate and execute plans and policies for emphasizing the purpose of this compact before the Congress of the United States and other appropriate officers and agencies of the United States and the respective states; and the exercise of such other powers as may be appropriate to enable it to accomplish its functions and duties in connection with the development of the Chickasaw Trail Economic Development Area and to carry out the purposes of this compact.
“Article IV. The Authority shall appoint a secretary, who shall be a person familiar with the nature, procedures and significance of economic development and the informational, educational and publicity methods of stimulating general interest in such developments, and who shall be the compact administrator. His/her term of office shall be at the pleasure of the Authority. He/she shall maintain custody of the Authority’s books, records and papers, which he/she shall keep at the office of the Authority, and he/she shall perform all functions and duties, and exercise all powers and authorities, that may be delegated to him/her by the Authority.
“Article V. Nothing in this compact shall be construed to conflict with any existing statute, or to limit the powers of any party or state or to repeal or prevent legislation, or to authorize or permit curtailment or diminution of any other economic development project, or to affect existing or future cooperative arrangements or relationships between any federal agency and a party state.
“Article VI. This compact shall continue in force and remain binding upon each party state until the Legislature or Governor of each or either state takes action to withdraw therefrom; provided that such withdrawal shall not become effective until six (6) months after the date of the action taken. Notice of such action shall be given by the Secretary of State of the party state which takes such action.
“IN WITNESS WHEREOF, I, Kirk Fordice, have subscribed my signature and caused the Great Seal of the State of Mississippi to be affixed this 9th day of May, 1997. “IN WITNESS WHEREOF, I, Don Sundquist, have subscribed my signature and caused the Great Seal of the State of Tennessee to be affixed this 9th day of April, 1997.”.
111 STAT. 2671
SEC. 2. INCONSISTENCY OF LANGUAGE. The validity of the compact consented to by this Act shall not be affected by any insubstantial difference in its form or language as adopted by the States.
SEC. 3. RIGHT TO ALTER, AMEND, OR REPEAL. The right to alter, amend, or repeal this joint resolution is hereby expressly reserved.
Approved December 15, 1997.
LEGISLATIVE HISTORY—H.J. Res. 95: HOUSE REPORTS: No. 105–389 (Comm. on the Judiciary). CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 12, considered and passed House.

Nov. 13, considered and passed Senate.

 Public Law 105–146: To reauthorize and amend the Atlantic Striped Bass Conservation Act and related laws. Public Law 146 Public Law 105–146 111 Stat. 2672 1997-12-16 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105 public 111 STAT. 2672 Public Law 105–146 105th Congress
An Act To reauthorize and amend the Atlantic Striped Bass Conservation Act and related laws.

Dec. 16, 1997

[HR. 1658]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Atlantic Striped Bass Conservation Act Amendments of 1997.

Intergovernmental relations.

16 USC 1851 note.
SECTION 1. SHORT TITLE. This Act may be cited as the “Atlantic Striped Bass Conservation Act Amendments of 1997”.
SEC. 2. REAUTHORIZATION AND AMENDMENT OF ATLANTIC STRIPED BASS CONSERVATION ACT. The Atlantic Striped Bass Conservation Act (16 U.S.C. 1851 note) is amended to read as follows:
“SECTION 1.

16 USC 668dd note.

 SHORT TITLE. “This Act may be cited as the ‘Atlantic Striped Bass Conservation Act’.
“SEC. 2. FINDINGS AND PURPOSES. “(a) Findings.— The Congress finds and declares the following: “(1) Atlantic striped bass are of historic commercial and recreational importance and economic benefit to the Atlantic coastal States and to the Nation. “(2) No single government entity has full management authority throughout the range of the Atlantic striped bass. “(3) The population of Atlantic striped bass— “(A) has been subject to large fluctuations due to natural causes, fishing pressure, environmental pollution, loss and alteration of habitat, inadequacy of fisheries conservation and management practices, and other causes; and “(B) risks potential depletion in the future without effective monitoring and conservation and management measures. “(4) It is in the national interest to implement effective procedures and measures to provide for effective interjurisdictional conservation and management of this species. “(b) Purpose.— It is therefore declared to be the purpose of the Congress in this Act to support and encourage the development, implementation, and enforcement of effective interstate action regarding the conservation and management of the Atlantic striped bass.
111 STAT. 2673
“SEC. 3. DEFINITIONS. “As used in this Act— “(1) the term ‘Magnuson Act’ means the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1801 et seq.). “(2) The term ‘Atlantic striped bass’ means members of stocks or populations of the species Morone saxatilis, which ordinarily migrate seaward of the waters described in paragraph (3)(A)(i). “(3) The term ‘coastal waters’ means— “(A) for each coastal State referred to in paragraph (4)(A)— “(i) all waters, whether salt or fresh, of the coastal State shoreward of the baseline from which the territorial sea of the United States is measured; and “(ii) the waters of the coastal State seaward from the baseline referred to in clause (i) to the inner boundary of the exclusive economic zone; “(B) for the District of Columbia, those waters within its jurisdiction; and “(C) for the Potomac River Fisheries Commission, those waters of the Potomac River within the boundaries established by the Potomac River Compact of 1958. “(4) The term ‘coastal State’ means— “(A) Pennsylvania and each State of the United States bordering on the Atlantic Ocean north of the State of South Carolina; “(B) the District of Columbia; and “(C) the Potomac River Fisheries Commission established by the Potomac River Compact of 1958. “(5) The term ‘Commission’ means the Atlantic States Marine Fisheries Commission established under the interstate compact consented to and approved by the Congress in Public Laws 77–539 and 81–721. “(6) The term ‘exclusive economic zone’ has the meaning given such term in section 3(6) of the Magnuson Act (16 U.S.C. 1802(6)). “(7) The term ‘fishing’ means— “(A) the catching, taking, or harvesting of Atlantic striped bass, except when incidental to harvesting that occurs in the course of commercial or recreational fish catching activities directed at a species other than Atlantic striped bass; “(B) the attempted catching, taking, or harvesting of Atlantic striped bass; and “(C) any operation at sea in support of, or in preparation for, any activity described in subparagraph (A) or (B). The term does not include any scientific research authorized by the Federal Government or by any State government. “(8) The term ‘moratorium area’ means the coastal waters with respect to which a declaration under section 5(a) applies. “(9) The term ‘moratorium period’ means the period beginning on the day on which moratorium is declared under section 5(a) regarding a coastal State and ending on the day on which the Commission notifies the Secretaries that that State has 111 STAT. 2674taken appropriate remedial action with respect to those matters that were the case of the moratorium being declared. “(10) The term ‘Plan’ means a plan for managing Atlantic striped bass, or an amendment to such plan, that is prepared and adopted by the Commission. “(11) The term ‘Secretary’ means the Secretary of Commerce or a designee of the Secretary of Commerce. “(12) The term ‘Secretaries’ means the Secretary of Commerce and the Secretary of the Interior or their designees.
“SEC. 4. MONITORING OF IMPLEMENTATION AND ENFORCEMENT BY COASTAL STATES. “(a) Determination.— During December of each fiscal year, and at any other time it deems necessary the Commission shall determine— “(1) whether each coastal State has adopted all regulatory measures necessary to fully implement the Plan in its coastal waters; and “(2) whether the enforcement of the Plan by each coastal State is satisfactory. “(b) Satisfactory State Enforcement.— For purposes of subsection (a)(2), enforcement by a coastal State shall not be considered satisfactory by the Commission if, in its view, the enforcement is being carried out in such a manner that the implementation of the Plan within the coastal waters of the State is being, or will likely be, substantially and adversely affected. “(c) Notification of Secretaries.— The Commission shall immediately notify the Secretaries of each negative determination made by it under subsection (a).
“SEC. 5. MORATORIUM. “(a) Secretarial Action After Notification.— Upon receiving notice from the Commission under section 4(c) of a negative determination regarding a coastal State, the Secretaries shall determine jointly, within 30 days, whether that coasted State is in compliance with the Plan and, if the State is not in compliance, the Secretaries shall declare jointly a moratorium on fishing for Atlantic striped bass within the coastal waters of that coastal State. In making such a determination, the Secretaries shall carefully consider and review the comments of the Commission and that coastal State in question. “(b) Prohibited Acts During Moratorium.— During a moratorium period, it is unlawful for any person— “(1) to engage in fishing within the moratorium area; “(2) to land, or attempt to land, Atlantic striped bass that are caught, taken, or harvested in violation of paragraph (1); “(3) to land lawfully harvested Atlantic striped bass within the boundaries of a coastal State when a moratorium declared under subsection (a) applies to that State; or “(4) to fail to return to the water Atlantic striped bass to which the moratorium applies that are caught incidental to harvesting that occurs in the course of commercial or recreational fish catching activities, regardless of the physical condition of the striped bass when caught. “(c) Civil Penalties.— “(1) Civil penalty.— Any person who commits any act that is unlawful under subsection (b) shall be liable to 111 STAT. 2675the United States for a civil penalty as provided by section 308 of the Magnuson Act (16 U.S.C. 1858). “(2) Civil forfeitures.— “(A) In general.— Any vessel (including its gear, equipment, appurtenances, stores, and cargo) used, and any fish (or the fair market value thereof) taken or retained, in any manner, in connection with, or as the result of, the commission of any act that is unlawful under subsection (b) shall be subject to forfeiture to the United States as provided in section 310 of the Magnuson Act (16 U.S.C. 1860). “(B) Disposal of fish.— Any fish seized pursuant to this Act may be disposed of pursuant to the order of a court of competent jurisdiction, or, if perishable, in a manner prescribed in regulations. “(d) Enforcement.— A person authorized by the Secretaries or the Secretary of the department in which the Coast Guard is operating may take any action to enforce a moratorium declared under subsection (a) that an officer authorized by the Secretary under section 311(b) of the Magnuson Act (16 U.S.C. 1861(b)) may take to enforce that Act (16 U.S.C. 1801 et seq.). The Secretaries may, by agreement, on a reimbursable basis or otherwise, utilize the personnel, services, equipment (including aircraft and vessels), and facilities of any other Federal department or agency and of any agency of a State in carrying out that enforcement. “(e) Regulations.— The Secretaries may issue regulations to implement this section.
“SEC. 6. CONTINUING STUDIES OF STRIPED BASS POPULATIONS. “(a) In General.— For the purposes of carrying out this Act, the Secretaries shall conduct continuing, comprehensive studies of Atlantic striped bass stocks. These studies shall include, but shall not be limited to, the following: “(1) Annual stock assessments, using fishery-dependent and fishery-independent data, for the purposes of extending the long-term population record generated by the annual striped bass study conducted by the Secretaries before 1994 and understanding the population dynamics of Atlantic striped bass. “(2) Investigations of the causes of fluctuations in Atlantic striped bass populations. “(3) Investigations of the effects of water quality, land use, and other environmental factors on the recruitment, spawning potential, mortality, and abundance of Atlantic striped bass populations, including the Delaware River population. “(4) Investigations of— “(A) the interactions between Atlantic striped bass and other fish, including bluefish, menhaden, mackerel, and other forage fish or possible competitors, stock assessments of these species, to the extent appropriate; and “(B) the effects of interspecies predation and competition on the recruitment, spawning potential mortality, and abundance of Atlantic striped bass. “(b) Socio-Economic Study.— The Secretaries, in consultation with with the Atlantic States Marine Fisheries Commission, shall conduct a study of the socioeconomic benefits of the Atlantic striped bass resource. The Secretaries shall issue a report to the Congress

Reports.

 111 STAT. 2676concerning the findings of this study no later than September 30, 1998. “(c) Reports.— The Secretaries shall make biennial reports to the Congress and to the Commission concerning the progress and findings of studies conducted under subsection (a) and shall make those reports public. Such reports shall, to the extent appropriate, contain recommendations of actions which could be taken to encourage the sustainable management of Atlantic striped bass.
“SEC. 7. AUTHORIZATION OF APPROPRIATIONS; COOPERATIVE AGREEMENTS. “(a) Authorization.— For each of fiscal years 1998, 1999, and 2000, there are authorized to be appropriated to carry out this Act— “(1) $800,000 to the Secretary of Commerce; and “(2) $250,000 to the Secretary of the Interior. “(b) Cooperative Agreements.— The Secretaries may enter into cooperative agreements with the Atlantic States Marine Fisheries Commission or with States, for the purpose of using amounts appropriated pursuant to this section to provide financial assistance for carrying out the purposes of this Act.
“SEC. 8. PUBLIC PARTICIPATION IN PREPARATION OF MANAGEMENT PLANS AND AMENDMENTS. “(a) Standards and Procedures.— In order to ensure the opportunity for public participation in the preparation of management plans and amendments to management plans for Atlantic striped bass, the Commission shall prepare such plans and amendments in accordance with the standards and procedures established under section 805(a)(2) of the Atlantic Coastal Fisheries Cooperative Management Act. “(b) Application.— Subsection (a) shall apply to management plans and amendments adopted by the Commission after the 6- month period beginning on the date of enactment of the Atlantic Striped Bass Conservation Act Amendments of 1997.
“SEC. 9. PROTECTION OF STRIPED BASS IN THE EXCLUSIVE ECONOMIC ZONE. “(a) Regulation of Fishing in Exclusive Economic Zone.— The Secretary shall promulgate regulations governing fishing for Atlantic striped bass in the exclusive economic zone that the Secretary determines— “(1) are consistent with the national standards set forth in section 301 of the Magnuson Act (16 U.S.C. 1851); “(2) are compatible with the Plan and each Federal moratorium in effect on fishing for Atlantic striped bass within the coastal waters of a coastal State; “(3) ensure the effectiveness of State regulations on fishing for Atlantic striped bass within the coastal waters of a coastal State; and “(4) are sufficient to assure the long-term conservation of Atlantic striped bass populations. “(b) Consultation; Periodic Review of Regulations.— In preparing regulations under subsection (a), the Secretary shall consult with the Atlantic States Marine Fisheries Commission, the appropriate Regional Fishery Management Councils, and each affected Federal, State, and local government entity. The Secretary shall periodically review regulations promulgated under subsection 111 STAT. 2677(a), and if necessary to ensure their continued consistency with the requirements of subsection (a), shall amend those regulations. “(c) Applicability of Magnuson Act Provisions.— The provisions of sections 307, 308, 309, 310, and 311 of the Magnuson Act (16 U.S.C. 1857, 1858, 1859, 1860, and 1861) regarding prohibited acts, civil penalties, criminal offenses, civil forfeitures, and enforcement shall apply with respect to regulations and any plan issued under subsection (a) of this section as if such regulations or plan were issued under the Magnuson Act.”.
SEC. 3. REPEALS. (a) Anadromous Fish Conservation Act.— Section 7 of the Anadromous Fish Conservation Act (16 U.S.C. 757g) is repealed. (b) Albemarle Sound-Roanoke River Basin.— Section 5 of the Act entitled “An Act to authorize appropriations to carry out the Atlantic Striped Bass Conservation Act for fiscal years 1989 through 1991, and for other purposes”, approved November 3, 1988 (16 U.S.C. 1851 note; 102 Stat. 2984), relating to studies of the Albermarle Sound-Roanoke River Basin striped bass stock, is repealed. (c) Regulation of Fishing in Exclusive Economic Zone.— Section 6 of the Act entitled “An Act to authorize appropriations to carry out the Atlantic Striped Bass Conservation Act for fiscal years 1989 through 1991, and for other purposes”, approved November 3, 1988 (16 U.S.C. 1851 note; 102 Stat. 2986) is repealed.
Approved December 16, 1997.
LEGISLATIVE HISTORY—H R. 1658: HOUSE REPORTS: No. 105–169 (Comm. on Resources). SENATE REPORTS: Nos. 105–148 (Comm. on Commerce, Science, and Transportation) and 105–149 (Comm. on Environment and Public Works). CONGRESSIONAL RECORD, Vol. 143 (1997):

July 8, considered and passed House.

Nov. 10, considered and passed Senate, amended.

Nov. 13, House concurred in Senate amendements.

 Public Law 105–147: To amend the provisions of titles 17 and 18, United States Code, to provide greater copyright protection by amending criminal copyright infringement provisions, and for other purposes. Public Law 147 Public Law 105–147 111 Stat. 2678 1997-12-16 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105 public 111 STAT. 2678 Public Law 105–147 105th Congress
An Act To amend the provisions of titles 17 and 18, United States Code, to provide greater copyright protection by amending criminal copyright infringement provisions, and for other purposes.

Dec. 16, 1997

[H.R. 2265]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

No Electronic Theft (NET) Act.

18 USC 2311 note.
SECTION 1. SHORT TITLE. This Act may be cited as the “No Electronic Theft (NET) Act”.
SEC. 2. CRIMINAL INFRINGEMENT OF COPYRIGHTS. (a) Definition of Financial Gain.— Section 101 of title 17, United States Code, is amended by inserting after the undesignated paragraph relating to the term “display”, the following new paragraph:“The term ‘financial gain’ includes receipt, or expectation of receipt, of anything of value, including the receipt of other copyrighted works.”. (b) Criminal Offenses.— Section 506(a) of title 17, United States Code, is amended to read as follows: “(a) Criminal Infringement.— Any person who infringes a copyright willfully either— “(1) for purposes of commercial advantage or private financial gain, or “(2) by the reproduction or distribution, including by electronic means, during any 180-day period, of 1 or more copies or phonorecords of 1 or more copyrighted works, which have a total retail value of more than $1,000, shall be punished as provided under section 2319 of title 18, United States Code. For purposes of this subsection, evidence of reproduction or distribution of a copyrighted work, by itself, shall not be sufficient to establish willful infringement.”. (c) Limitation on Criminal Proceedings.— Section 507(a) of title 17, United States Code, is amended by striking “three” and inserting “5”. (d) Criminal Infringement of a Copyright.— Section 2319 of title 18, United States Code, is amended— (1) in subsection (a), by striking “subsection (b)” and inserting “subsections (b) and (c)”; (2) in subsection (b)— (A) in the matter preceding paragraph (1), by striking “subsection (a) of this section” and inserting “section 506(a)(1) of title 17”; and (B) in paragraph (1)— (i) by inserting “including by electronic means,” after “if the offense consists of the reproduction or distribution,”; and 111 STAT. 2679 (ii) by striking “with a retail value of more than $2,500” and inserting “which have a total retail value of more than $2,500”; and (3) by redesignating subsection (c) as subsection (e) and inserting after subsection (b) the following: “(c) Any person who commits an offense under section 506(a)(2) of title 17, United States Code— “(1) shall be imprisoned not more than 3 years, or fined in the amount set forth in this title, or both, if the offense consists of the reproduction or distribution of 10 or more copies or phonorecords of 1 or more copyrighted works, which have a total retail value of $2,500 or more; “(2) shall be imprisoned not more than 6 years, or fined in the amount set forth in this title, or both, if the offense is a second or subsequent offense under paragraph (1); and “(3) shall be imprisoned not more than 1 year, or fined in the amount set forth in this title, or both, if the offense consists of the reproduction or distribution of 1 or more copies or phonorecords of 1 or more copyrighted works, which have a total retail value of more than $1,000. “(d) (1) During preparation of the presentence report pursuant to Rule 32(c) of the Federal Rules of Criminal Procedure, victims of the offense shall be permitted to submit, and the probation officer shall receive, a victim impact statement that identifies the victim of the offense and the extent and scope of the injury and loss suffered by the victim, including the estimated economic impact of the offense on that victim. “(2) Persons permitted to submit victim impact statements shall include— “(A) producers and sellers of legitimate works affected by conduct involved in the offense; “(B) holders of intellectual property rights in such works; and “(C) the legal representatives of such producers, sellers, and holders.” (e) Unauthorized Fixation and Trafficking of Live Musical Performances.— Section 2319A of title 18, United States Code, is amended— (1) by redesignating subsections (d) and (e) as subsections (e) and (f), respectively; and (2) by inserting after subsection (c) the following: “(d) Victim Impact Statement.— (1) During preparation of the presentence report pursuant to Rule 32(c) of the Federal Rules of Criminal Procedure, victims of the offense shall be permitted to submit, and the probation officer shall receive, a victim impact statement that identifies the victim of the offense and the extent and scope of the injury and loss suffered by the victim, including the estimated economic impact of the offense on that victim. “(2) Persons permitted to submit victim impact statements shall include— “(A) producers and sellers of legitimate works affected by conduct involved in the offense; “(B) holders of intellectual property rights in such works; and “(C) the legal representatives of such producers, sellers, and holders.”. (f) Trafficking in Counterfeit Goods or Services.— Section 2320 of title 18, United States Code, is amended— (1) by redesignating subsections (d) and (e) as subsections (e) and (f), respectively; and (2) by inserting after subsection (c) the following:111 STAT. 2680 “(d) (1) During preparation of the presentence report pursuant to Rule 32(c) of the Federal Rules of Criminal Procedure, victims of the offense shall be permitted to submit, and the probation officer shall receive, a victim impact statement that identifies the victim of the offense and the extent and scope of the injury and loss suffered by the victim, including the estimated economic impact of the offense on that victim. “(2) Persons permitted to submit victim impact statements shall include— “(A) producers and sellers of legitimate goods or services affected by conduct involved in the offense; “(B) holders of intellectual property rights in such goods or services; and “(C) the legal representatives of such producers, sellers, and holders.”. (g) Directive to Sentencing Commission.— (1) Under the authority of the Sentencing Reform Act of 1984 (Public Law 98–473; 98 Stat. 1987) and section 21 of the Sentencing Act of 1987 (Public Law 100–182; 101 Stat. 1271; 18 U.S.C. 994 note) (including the authority to amend the sentencing guidelines and policy statements), the United States Sentencing Commission shall ensure that the applicable guideline range for a defendant convicted of a crime against intellectual property (including offenses set forth at section 506(a) of title 17, United States Code, and sections 2319, 2319A, and 2320 of title 18, United States Code) is sufficiently stringent to deter such a crime and to adequately reflect the additional considerations set forth in paragraph (2) of this subsection. (2) In implementing paragraph (1), the Sentencing Commission shall ensure that the guidelines provide for consideration of the retail value and quantity of the items with respect to which the crime against intellectual property was committed.
SEC. 3. INFRINGEMENT BY UNITED STATES. Section 1498(b) of title 28, United States Code, is amended by striking “remedy of the owner of such copyright shall be by action” and inserting “action which may be brought for such infringement shall be an action by the copyright owner”.
Approved December 16, 1997.
LEGISLATIVE HISTORY—H.R. 2265: HOUSE REPORTS: No. 105–339 (Comm, on the Judiciary). CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 4, considered and passed House.

Nov. 13, considered and passed Senate.

 Public Law 105–148: To amend title 49. United States Code, to require the National Transportation Safety Board and individual foreign air carriers to address the needs of families of passengers involved in aircraft accidents involving foreign air carriers. Public Law 148 Public Law 105–148 111 Stat. 2681 1997-12-16 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105 public 111 STAT. 2681 Public Law 105–148 105th Congress
An Act To amend title 49. United States Code, to require the National Transportation Safety Board and individual foreign air carriers to address the needs of families of passengers involved in aircraft accidents involving foreign air carriers.

Dec. 16, 1997

[H.R. 2476]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. PLANS TO ADDRESS NEEDS OF FAMILIES OF PASSENGERS INVOLVED IN FOREIGN AIR CARRIER ACCIDENTS. (a) In General.— Chapter 413 of title 49, United States Code, is amended by adding at the end the following:
“§ 41313. PLANS TO ADDRESS NEEDS OF FAMILIES OF PASSENGERS INVOLVED IN FOREIGN AIR CARRIER ACCIDENTS “(a) Definitions.— In this section, the following definitions apply. “(1) Aircraft accident.— The term ‘aircraft accident’ means any aviation disaster, regardless of its cause or suspected cause, that occurs within the United States; and “(2) Passenger.— The term ‘passenger’ includes an employee of a foreign air carrier or air carrier aboard an aircraft. “(b) Submission of Plans.— A foreign air carrier providing foreign air transportation under this chapter shall transmit to the Secretary of Transportation and the Chairman of the National Transportation Safety Board a plan for addressing the needs of the families of passengers involved in an aircraft accident that involves an aircraft under the control of the foreign air carrier and results in a significant loss of life. “(c) Contents of Plans— To the extent permitted by foreign law which was in effect on the date of the enactment of this section, a plan submitted by a foreign air carrier under subsection (b) shall include the following: “(1) Telephone number.— A plan for publicizing a reliable, toll-free telephone number and staff to take calls to such number from families of passengers involved in an aircraft accident that involves an aircraft under the control of the foreign air carrier and results in a significant loss of life. “(2) Notification of families.— A process for notifying, in person to the extent practicable, the families of passengers involved in an aircraft accident that involves an aircraft under the control of the foreign air carrier and results in a significant loss of life before providing any public notice of the names of such passengers. Such notice shall be provided by using the services of— 111 STAT. 2682 “(A) the organization designated for the accident under section 1136(a)(2); or “(B) other suitably trained individuals. “(3) Notice provided as soon as possible.— An assurance that the notice required by paragraph (2) shall be provided as soon as practicable after the foreign air carrier has verified the identity of a passenger on the foreign aircraft, whether or not the names of all of the passengers have been verified. “(4) List of passengers.— An assurance that the foreign air carrier shall provide, immediately upon request, and update a list (based on the best available information at the time of the request) of the names of the passengers aboard the aircraft (whether or not such names have been verified), to— “(A) the director of family support services designated for the accident under section 1136(a)(1); and “(B) the organization designated for the accident under section 1136(a)(2). “(5) Consultation regarding disposition of remains and effects.— An assurance that the family of each passenger will be consulted about the disposition of any remains and personal effects of the passenger that are within the control of the foreign air carrier. “(6) Return of possessions.— An assurance that, if requested by the family of a passenger, any possession (regardless of its condition) of that passenger that is within the control of the foreign air carrier will be returned to the family unless the possession is needed for the accident investigation or a criminal investigation. “(7) Unclaimed possessions retained.— An assurance that any unclaimed possession of a passenger within the control of the foreign air carrier will be retained by the foreign air carrier for not less than 18 months after the date of the accident. “(8) Monuments.— An assurance that the family of each passenger will be consulted about construction by the foreign air carrier of any monument to the passengers built in the United States, including any inscription on the monument. “(9) Equal treatment of passengers.— An assurance that the treatment of the families of nonrevenue passengers will be the same as the treatment of the families of revenue passengers. “(10) Service and assistance to families of passengers.— An assurance that the foreign air carrier will work with any organization designated under section 1136(a)(2) on an ongoing basis to ensure that families of passengers receive an appropriate level of services and assistance following an accident. “(11) Compensation to service organizations.— An assurance that the foreign air carrier will provide reasonable compensation to any organization designated under section 1136(a)(2) for services and assistance provided by the organization. “(12) Travel and care expenses.— An assurance that the foreign air carrier will assist the family of any passenger in traveling to the location of the accident and provide for the physical care of the family while the family is staying at such location. 111 STAT. 2683 “(13) Resources for plan.— An assurance that the foreign air carrier will commit sufficient resources to carry out the plan. “(14) Substitute measures.— If a foreign air carrier does not wish to comply with paragraph (10), (11), or (12), a description of proposed adequate substitute measures for the requirements of each paragraph with which the foreign air carrier does not wish to comply. “(d) Permit and Exemption Requirement.— The Secretary shall not approve an application for a permit under section 41302 unless the applicant has included as part of the application or request for exemption a plan that meets the requirements of subsection (c). “(e) Limitation on Liability.— A foreign air carrier shall not be liable for damages in any action brought in a Federal or State court arising out of the performance of the foreign air carrier in preparing or providing a passenger list pursuant to a plan submitted by the foreign air carrier under subsection (c), unless the liability was caused by conduct of the foreign air carrier which was grossly negligent or which constituted intentional misconduct.”.
(b) Conforming Amendment.— The table of sections for such chapter is amended by adding at the end the following: “41313. (c) Effective Date.— The amendments made by this section

49 USC 41313 note.

shall take effect on the 180th day following the date of the enactment of this Act.
Approved December 16, 1997.
LEGISLATIVE HISTORY—H.R. 2476: HOUSE REPORTS: No. 105–371 (Comm, on Transportation and Infrastructure). CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 9, considered and passed House.

Nov. 13, considered and passed Senate.

 Public Law 105–149: To amend the Federal charter for Group Hospitalization and Medical Services, Inc., and for other purposes. Public Law 149 Public Law 105–149 111 Stat. 2684 1997-12-16 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105 public 111 STAT. 2684 Public Law 105–149 105th Congress
An Act To amend the Federal charter for Group Hospitalization and Medical Services, Inc., and for other purposes.

Dec. 16, 1997

[H.R. 3025]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. CHARTER FOR GROUP HOSPITALIZATION AND MEDICAL SERVICES. INC. The Act entitled “An Act providing for the incorporation of certain persons as Group Hospitalization and Medical Services, Inc.”, approved August 11, 1939 (53 Stat. 1412), is amended— (1) by inserting after section 9 the following new section:
“SEC. 10. The corporation may have 1 class of members, consisting of at least 1 member and not more than 30 members, as determined appropriate by the board of trustees. The bylaws for the corporation shall prescribe the designation of such class as well as the rights, privileges and qualifications of such class, which may include, but shall not be limited to— “(1) the manner of election, appointment or removal of a member of the corporation; “(2) matters on which a member of the corporation has the right to vote; and “(3) meeting, notice, quorum, voting and proxy requirements and procedures. If a member of the corporation is a corporation, such member shall be a nonprofit corporation.”;
(2) by redesignating section 10 as section 11; and (3) by adding at the end of section 11 (as so redesignated) the following: “The corporation may not be dissolved without approval by Congress.”.
Approved December 16, 1997.
LEGISLATIVE HISTORY—H R. 3025: CONGRESSIONAL RECORD. Vol. 143 (1997):

Nov. 13, considered and passed House and Senate.

 Public Law 105–150: To amend section 13031 of the Consolidated Omnibus Budget Reconciliation Act of 1985, relating to customs user fees, to allow the use of such fees to provide for customs inspectional personnel in connection with the arrival of passengers in Florida, and for other purposes. Public Law 150 Public Law 105–150 111 Stat. 2685 1997-12-16 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105 public 111 STAT. 2685 Public Law 105–150 105th Congress
An Act To amend section 13031 of the Consolidated Omnibus Budget Reconciliation Act of 1985, relating to customs user fees, to allow the use of such fees to provide for customs inspectional personnel in connection with the arrival of passengers in Florida, and for other purposes.

Dec. 16, 1997

[H.R. 3034]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. FUNDS FOR CUSTOMS INSPECTIONAL PERSONNEL. (a) Access to Customs User Fee Account.— Section 13031(f)(3)(A) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(f)(3)(A)), is amended— (1) in clause (i)(V), by striking “and” at the end; (2) in clause (ii)— (A) by striking “to make reimbursements” and inserting “after making reimbursements”; and (B) by striking the period at the end and inserting “, and”; and (3) by inserting after clause (ii) the following: “(iii) to the extent funds remain available after making reimbursements under clause (ii), in providing salaries for up to 50 full-time equivalent inspectional positions through September 30, 1998, that enhance customs services in connection with the arrival in Florida of passengers aboard commercial vessels, regardless of whether those passengers are required to pay fees under paragraphs (1) through (8) of subsection (a).”.
Approved December 16, 1997.
LEGISLATIVE HISTORY—H.R. 3034: CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 13, considered and passed House and Senate.

 Public Law 105–151: Granting the consent and approval of Congress for the State of Maryland, the Commonwealth of Virginia, and the District of Columbia to amend the Washington Metropolitan Area Transit Regulation Compact. Public Law 151 Public Law 105–151 111 Stat. 2686 1997-12-16 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105 public 111 STAT. 2686 Public Law 105–151 105th Congress
Joint Resolution Granting the consent and approval of Congress for the State of Maryland, the Commonwealth of Virginia, and the District of Columbia to amend the Washington Metropolitan Area Transit Regulation Compact.

Dec. 16, 1997

[H.J. Res. 96]

 Whereas the State of Maryland, the Commonwealth of Virginia, and the District of Columbia have adopted amendments to the Washington Metropolitan Area Transit Regulation Compact relating to public hearing requirements and empowering transit police officers to carry weapons issued by WMATA while in an off-duty status, consistent with limitations imposed by the applicable political subdivision; and Whereas the Congress has reviewed such amendments and is willing to consent to such amendments: Now, therefore, be it Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,
That consent of Congress is hereby given to the amendments of the State of Maryland (Chapter 489, 1996 Laws of the Maryland General Assembly and Chapters 91 and 699, 1997 Laws of the Maryland General Assembly), the amendments of the Commonwealth of Virginia (Chapter 150, 1995 Acts of Assembly of Virginia), and the amendments of the District of Columbia (D.C. Law 11–443) to sections 62 and 76 of title III of the Washington Metropolitan Area Transit Regulation Compact. Such amendments are as follows: (1) Section 62(a) is amended to read as follows: “(a) The Board shall not raise any fare or rate, nor implement a major service reduction, except after holding a public hearing with respect thereto.”. (2) Section 62(c) is amended to read as follows: “(c) The Board shall give at least fifteen days’ notice for all public hearings. The notice shall be given by publication in a newspaper of daily circulation throughout the Transit Zone and such notice shall be published once a week for two successive weeks. The notice period shall start with the first day of publication. Notices of public hearings shall be posted in accordance with regulations promulgated by the Board.”. (3) Section 76(b) is amended to read as follows: “(b) A member of the Metro Transit Police shall have the same powers, including the power of arrest, and shall be subject to the same limitations, including regulatory limitations, in the performance of his duties as a member of the duly constituted police force of the political subdivision in which the Metro Transit Police member is engaged in the performance of his duties. A member of the Metro Transit Police is authorized to carry and use only such weapons, including handguns, as are issued by the Authority. A member of the Metro Transit Police is subject to 111 STAT. 2687such additional limitations in the use of weapons as are imposed on the duly constituted police force for the political subdivision in which he is engaged in the performance of his duties.”. (4) Section 76(e) is amended to read as follows: “(e) The Authority shall have the power to adopt rules and regulations for the safe, convenient, and orderly use of the transit facilities owned, controlled, or operated by the Authority, including the payment and the manner of the payment of fares or charges therefor, the protection of the transit facilities, the control of traffic and parking upon the transit facilities, and the safety and protection of the riding public. In the event that any such rules and regulations contravene the laws, ordinances, rules, or regulations of a signatory or any political subdivision thereof which are existing or subsequently enacted, these laws, ordinances, rules, or regulations of the signatory or the political subdivision shall apply and the conflicting rule or regulation, or portion thereof, of the Authority shall be void within the jurisdiction of that signatory or political subdivision. In all other respects, the rules and regulations of the Authority shall be uniform throughout the Transit Zone. The rules or regulations established under this subsection shall be adopted by the Board following public hearings held in accordance with section 62(c) and (d) of this Compact. The final regulation shall be published in a newspaper of general circulation within the Zone at least 15 days before its effective date. Any person violating any rule or regulation of the Authority shall be subject to arrest and, upon conviction by a court of competent jurisdiction, shall pay a fine of not more than two hundred fifty dollars ($250) and costs. Criminal violations of any rule or regulation of the Authority shall be prosecuted by the signatory or political subdivision in which the violation occurred, in the same manner by which violations of law, ordinances, rules, and regulations of the signatory or political subdivisions are prosecuted.”.
Approved December 16, 1997.
LEGISLATIVE HISTORY—H.J. Res. 96: HOUSE REPORTS: No. 105–396 (Comm, on the Judiciary). CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 12, considered and passed House.

Nov. 13, considered and passed Senate.

 Public Law 105–152: To authorize the reimbursement of members of the Army deployed to Europe in support of operations in Bosnia for certain out-of-pocket expenses incurred by the members during the period beginning on October 1, 1996, and ending on May 31, 1997. Public Law 152 Public Law 105–152 111 Stat. 2688 1997-12-17 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105 public 111 STAT. 2688 Public Law 105–152 105th Congress
An Act To authorize the reimbursement of members of the Army deployed to Europe in support of operations in Bosnia for certain out-of-pocket expenses incurred by the members during the period beginning on October 1, 1996, and ending on May 31, 1997.

Dec. 17, 1997

[H.R. 2796]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Army Reserve National Guard Equity Reimbursement Act.
SECTION 1. SHORT TITLE. This Act may be cited as the “Army Reserve-National Guard Equity Reimbursement Act”.
SEC. 2. REIMBURSEMENT OF MEMBERS OF THE ARMY DEPLOYED IN EUROPE IN SUPPORT OF BOSNIA OPERATIONS FOR OUT-OF-POCKET EXPENSES INCURRED TO TRANSPORT PERSONAL PROPERTY. (a) Reimbursement Authorized.— The Secretary of the Army may reimburse an individual described in subsection (b) for expenses incurred by that individual while a member of the Army for shipment of personal property of the individual to or from Europe during the period beginning on October 1, 1996, and ending on May 31, 1997, if the shipment of the personal property, if made on June 1, 1997, would have been covered by a temporary change of station weight allowance for shipment of personal property authorized by the Department of the Army. Such reimbursement shall be made from amounts available as of the date of the enactment of this section for the payment of the temporary change of station weight allowance. (b) Covered Individuals.— An individual referred to in subsection (a) is an individual who, as a member of the Army during the period beginning on October 1, 1996, and ending on May 31, 1997, was deployed from the United States to Europe in support of operations in Bosnia or reassigned from Europe to United States upon the completion of such deployment, or both, under travel orders that did not authorize a temporary change of station weight allowance for shipment of personal property of the member.
Approved December 17, 1997.
LEGISLATIVE HISTORY—H.R. 2796: CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 13, considered and passed House and Senate.

 Public Law 105–153: To amend the Federal Advisory Committee Act to clarify public disclosure requirements that are applicable to the National Academy of Sciences and the National Academy of Public Administration. Public Law 153 Public Law 105–153 111 Stat. 2689 1997-12-17 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105 public 111 STAT. 2689 Public Law 105–153 105th Congress
An Act To amend the Federal Advisory Committee Act to clarify public disclosure requirements that are applicable to the National Academy of Sciences and the National Academy of Public Administration.

Dec. 17, 1997

[H.R. 2977]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Federal Advisory Committee Act Amendments of 1997.

5 USC app. 1 note.
SECTION 1. SHORT TITLE. This Act may be cited as the “Federal Advisory Committee Act Amendments of 1997”.
SEC. 2. AMENDMENTS TO THE FEDERAL ADVISORY COMMITTEE ACT. (a) Exclusions From Definition.— Section 3(2) of the Federal Advisory Committee Act (5 U.S.C. App.) is amended in the matter following subparagraph (C), by striking “such term excludes” and all that follows through the period and inserting the following: “such term excludes (i) any committee that is composed wholly of full-time, or permanent part-time, officers or employees of the Federal Government, and (ii) any committee that is created by the National Academy of Sciences or the National Academy of Public Administration.”. (b) Requirements Relating to the National Academy of Sciences and the National Academy of Public Administration.— Such Act is further amended by redesignating section 15 as section 16 and inserting after section 14 the following new section:
“REQUIREMENTS RELATING TO THE NATIONAL ACADEMY OF SCIENCES AND THE NATIONAL ACADEMY OF PUBLIC ADMINISTRATION “SEC. 15. (a) In General.— An agency may not use any advice or recommendation provided by the National Academy of Sciences or National Academy of Public Administration that was developed by use of a committee created by that academy under an agreement with an agency, unless— “(1) the committee was not subject to any actual management or control by an agency or an officer of the Federal Government; “(2) in the case of a committee created after the date of the enactment of the Federal Advisory Committee Act Amendments of 1997, the membership of the committee was appointed in accordance with the requirements described in subsection (b)(1); and “(3) in developing the advice or recommendation, the academy complied with— 111 STAT. 2690 “(A) subsection (b)(2) through (6), in the case of any advice or recommendation provided by the National Academy of Sciences; or “(B) subsection (b)(2) and (5), in the case of any advice or recommendation provided by the National Academy of Public Administration. “(b) Requirements.— The requirements referred to in subsection (a) are as follows: “(1)

Notice.

The Academy shall determine and provide public notice of the names and brief biographies of individuals that the Academy appoints or intends to appoint to serve on the committee. The Academy shall determine and provide a reasonable opportunity for the public to comment on such appointments before they are made or, if the Academy determines such prior comment is not practicable, in the period immediately following the appointments. The Academy shall make its best efforts to ensure that (A) no individual appointed to serve on the committee has a conflict of interest that is relevant to the functions to be performed, unless such conflict is promptly and publicly disclosed and the Academy determines that the conflict is unavoidable, (B) the committee membership is fairly balanced as determined by the Academy to be appropriate for the functions to be performed, and (C) the final report of the Academy will be the result of the Academy’s independent judgment. The Academy shall require that individuals that the Academy appoints or intends to appoint to serve on the committee inform the Academy of the individual’s conflicts of interest that are relevant to the functions to be performed. “(2)

Notice.

 The Academy shall determine and provide public notice of committee meetings that will be open to the public. “(3) The Academy shall ensure that meetings of the committee to gather data from individuals who are not officials, agents, or employees of the Academy are open to the public, unless the Academy determines that a meeting would disclose matters described in section 552(b) of title 5, United States Code. The Academy shall make available to the public, at reasonable charge if appropriate, written materials presented to the committee by individuals who are not officials, agents, or employees of the Academy, unless the Academy determines that making material available would disclose matters described in that section. “(4) The Academy shall make available to the public as soon as practicable, at reasonable charge if appropriate, a brief summary of any committee meeting that is not a data gathering meeting, unless the Academy determines that the summary would disclose matters described in section 552(b) of title 5, United States Code. The summary shall identify the committee members present, the topics discussed, materials made available to the committee, and such other matters that the Academy determines should be included. “(5)

Reports.

 The Academy shall make available to the public its final report, at reasonable charge if appropriate, unless the Academy determines that the report would disclose matters described in section 552(b) of title 5, United States Code. If the Academy determines that the report would disclose matters described in that section, the Academy shall make public an 111 STAT. 2691abbreviated version of the report that does not disclose those matters. “(6) After publication of the final report, the Academy shall make publicly available the names of the principal reviewers who reviewed the report in draft form and who are not officials, agents, or employees of the Academy. “(c)

5 USC app. 3 note.

 Regulations.— The Administrator of General Services may issue regulations implementing this section.”.
(c) Effective Date and Application.— (1) In general— Except as provided in paragraph (2), this section and the amendments made by this section shall take effect on the date of the enactment of this Act. (2) Retroactive effect— Subsection (a) and the amendments made by subsection (a) shall be effective as of October 6, 1972, except that they shall not apply with respect to or otherwise affect any particular advice or recommendations that are subject to any judicial action filed before the date of the enactment of this Act.
SEC. 3. REPORT.

5 USC app. 15 note.

 Not later than 1 year after the date of the enactment of this Act, the Administrator of General Services shall submit a report to the Congress on the implementation of and compliance with the amendments made by this Act.
Approved December 17, 1997.
LEGISLATIVE HISTORY—H.R. 2977: CONGRESSIONAL RECORD, Vol. 143 (1997):

Nov. 9, considered and passed House.

Nov. 13, considered and passed Senate.

 PRIVATE LAWS FIRST SESSION, ONE HUNDRED FIFTH CONGRESS Private Law 105–1: For the relief of Michel Christopher Meili, Giuseppina Meili, Miljam Naomi Meili, and Davide Meili. Private Law1 Private Law 105–1111 Stat. 2695 1997-07-29 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105private 111 STAT. 2695 Private Law 105–1 105th Congress
An Act For the relief of Michel Christopher Meili, Giuseppina Meili, Miljam Naomi Meili, and Davide Meili.

July 29, 1997

[S. 768]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. FINDINGS. Congress makes the following findings: (1) The actions of Swiss banks and their relations with Nazi Germany before and during World War II and the banks’ actions after the war concerning former Nazi loot and heirless assets placed in the banks before the war have been the subject of an extensive and ongoing inquiry by the Committee on Banking, Housing, and Urban Affairs of the Senate and a study by a United States interagency group. (2) On January 8, 1997, Michel Christopher Meili, while performing his duties as a security guard at the Union Bank of Switzerland in Zurich, Switzerland, discovered that bank employees were shredding important Holocaust-era documents. (3) Mr. Meili was able to save some of the documents from destruction and then turned them over to the Jewish community in Zurich and to the Swiss police. (4) Following Mr. Meili’s disclosure of the destruction of the Holocaust-era documents, Mr. Meili was suspended and then terminated from his job. He was also interrogated by the local Swiss authorities who tried to intimidate him by threatening prosecution for his heroic actions. (5) Since this disclosure, Mr. Meili and his family have been threatened and harassed, and have received many death threats. Mr. Meili also received a hand-delivered note threatening the kidnapping of his children in return for the “Jewish money” he would receive for his actions, and urging him to emigrate to the United States or be killed. (6) Because of his courageous actions, Mr. Meili and his family have suffered economic hardship, mental anguish, and have been forced to live in fear for their lives.
SEC. 2. PERMANENT RESIDENCE. Notwithstanding any other provision of law, for purposes of the Immigration and Nationality Act (8 U.S.C. 1101 et seq.), Michel Christopher Meili, Giuseppina Meili, Mirjam Naomi Meili, and Davide Meili shall be held and considered to have been lawfully admitted to the United States for permanent residence as of the date of the enactment of this Act upon payment of the required visa fees.
111 STAT. 2696
SEC. 3. REDUCTION OF NUMBER OF AVAILABLE VISAS. Upon the granting of permanent residence to Michel Christopher Meili, Giuseppina Meili. Mirjam Naomi Meili, and Davide Meili as provided in this Act, the Secretary of State shall instruct the proper officer to reduce by the appropriate number during the current fiscal year the total number of immigrant visas available to natives of the country of the aliens’ birth under section 203(a) of the Immigration and Nationality Act (8 U.S.C. 1153(a)).
Approved July 29, 1997.
Private Law 105–2: For the relief of John Wesley Davis. Private Law2 Private Law 105–2111 Stat. 2697 1997-08-11 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105private 111 STAT. 2697 Private Law 105–2 105th Congress
An Act For the relief of John Wesley Davis.

Aug. 11, 1997

[H.R. 584]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. WAIVER OF TIME LIMITATIONS. The time limitations set forth in sections 3702(c) and 3328(a)(1) of title 31, United States Code, shall not apply with respect to a claim by John Wesley Davis, of Forestville, Maryland, for the amounts due to him by the— (1) Department of the Navy in the amount of $42,123.84; and (2) Department of the Treasury in the amount of $12,508.20. The amounts due are represented by checks that were received but not negotiated by John Wesley Davis.
SEC. 2. DEADLINE. Section 1 shall apply only if John Wesley Davis or his authorized representative submits a claim pursuant to such subsection before the expiration of the 6-month period beginning on the date of the enactment of this Act.
Approved August 11, 1997.
Private Law 105–3: For the relief of Roy Desmond Moser. Private Law3 Private Law 105–3111 Stat. 2698 1997-11-21 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105private 111 STAT. 2698 Private Law 105–3 105th Congress
An Act For the relief of Roy Desmond Moser.

Nov. 21, 1997

[H.R. 2731]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. MODIFICATION OF EFFECTIVE DATE OF NATURALIZATION OF ROY DESMOND MOSER. Notwithstanding title III of the Immigration and Nationality Act, any predecessor provisions to such title, or any other provision of law relating to naturalization, for purposes of determining the eligibility of Roy Desmond Moser for relief under the Agreement Between the Government of the United States and the Government of the Federal Republic of Germany Concerning Final Benefits to Certain United States Nationals Who Were Victims of National Socialist Measures of Persecution, signed at Bonn on September 19, 1995, Roy Desmond Moser is deemed to be a naturalized citizen of the United States as of August 8, 1942.
Approved November 21, 1997.
Private Law 105–4: For the relief of John Andre Chalot. Private Law4 Private Law 105–4111 Stat. 2699 1997-11-21 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-06-04 105private 111 STAT. 2699 Private Law 105–4 105th Congress
An Act For the relief of John Andre Chalot.

Nov. 21, 1997

[H.R. 2732]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. MODIFICATION OF EFFECTIVE DATE OF NATURALIZATION OF JOHN ANDRE CHALOT. Notwithstanding title III of the Immigration and Nationality Act, any predecessor provisions to such title, or any other provision of law relating to naturalization, for purposes of determining the eligibility of John Andre Chalot for relief under the Agreement Between the Government of the United States and the Government of the Federal Republic of Germany Concerning Final Benefits to Certain United States Nationals Who Were Victims of National Socialist Measures of Persecution, signed at Bonn on September 19, 1995, John Andre Chalot is deemed to be a naturalized citizen of the United States as of September 3, 1943.
Approved November 21, 1997.
CONCURRENT RESOLUTIONS FIRST SESSION, ONE HUNDRED FIFTH CONGRESS S. Con. Res. 1: JOINT SESSION—ELECTORAL COLLEGE Senate Concurrent Resolution1 Jan. 7, 1997
111 STAT. 2703 JOINT SESSION—ELECTORAL COLLEGE

Jan. 7, 1997

[S. Con. Res. 1]

 Resolved by the Senate (the House of Representatives concurring),
That the two Houses of Congress shall meet in the Hall of the House of Representatives on Thursday, the 9th day of January 1997, at 1 o’clock post meridian, pursuant to the requirements of the Constitution and laws relating to the election of the President and Vice President of the United States, and the President of the Senate shall be their Presiding Officer; that two tellers shall be previously appointed by the President of the Senate on the part of the Senate and two by the Speaker on the part of the House of Representatives, to whom shall be handed, as they are opened by the President of the Senate, all the certificates and papers purporting to be certificates of the electoral votes, which certificates and papers shall be opened, presented, and acted upon in the alphabetical order of the States, beginning with the letter “A”; and said tellers, having then read the same in the presence and hearing of the two Houses, shall make a list of the votes as they shall appear from the said certificates; and the votes having been ascertained and counted in the manner and according to the rules by law provided, the result of the same shall be delivered to the President of the Senate, who shall thereupon announce the state of the vote, which announcement shall be deemed a sufficient declaration of the persons, if any, elected President and Vice President of the United States, and, together with a list of the votes, be entered on the Journals of the two Houses.
Agreed to January 7, 1997.
S. Con. Res. 2: PRESIDENTIAL INAUGURATION—JOINT COMMITTEE AND CEREMONIES Senate Concurrent Resolution2 Jan. 7, 1997
PRESIDENTIAL INAUGURATION—JOINT COMMITTEE AND CEREMONIES

Jan. 7, 1997

[S. Con. Res. 2]

 Resolved by the Senate (the House of Representatives concurring),
That effective from January 3, 1997, the joint committee created by Senate Concurrent Resolution 47 of the One Hundred Fourth Congress, to make the necessary arrangements for the inauguration, is hereby continued with the same power and authority.
Sec. 2. That effective from January 3, 1997, the provisions of Senate Concurrent Resolution 48 of the One Hundred Fourth Congress, to authorize the rotunda of the United States Capitol to be used in connection with the proceedings and ceremonies for the inauguration of the President-elect and the Vice President of the United States, and for other purposes, are hereby continued with the same power and authority.
Agreed to January 7, 1997.
S. Con. Res. 3: ADJOURNMENT—SENATE AND HOUSE OF REPRESENTATIVES Senate Concurrent Resolution3 Jan. 7, 1997
ADJOURNMENT—SENATE AND HOUSE OF REPRESENTATIVES

Jan. 7, 1997

[S. Con. Res. 3]

 Resolved by the Senate (the House of Representatives concurring),
That when the Senate recesses or adjourns on Thursday, 111 STAT. 2704January 9, 1997, pursuant to a motion made by the Majority Leader or his designee, in accordance with the provisions of this resolution, it stand recessed or adjourned until 12:00 noon on Tuesday, January 21, 1997, or until such time on that day as may be specified by the Majority Leader or his designee in the motion to recess or adjourn, or until 12:00 noon on the second day after Members are notified to reassemble pursuant to section 2 of this concurrent resolution; and that when the House adjourns on Thursday, January 9, 1997, it stand adjourned until 10:00 a.m. on Monday, January 20, 1997; that when the House adjourns on Monday, January 20, 1997, it stand adjourned until 12:00 noon on Tuesday, January 21, 1997; and that when the House adjourns on Tuesday, January 21, 1997, it stand adjourned until 12:30 p.m. on Tuesday, February 4, 1997, or until 12:00 noon on the second day after Members are notified to reassemble pursuant to section 2 of this concurrent resolution.
Sec. 2. The Majority Leader of the Senate and the Speaker of the House, acting jointly after consultation with the Minority Leader of the Senate and Minority Leader of the House, shall notify the Members of the Senate and the House, respectively, to reassemble whenever, in their opinion, the public interest shall warrant it.
Agreed to January 7, 1997.
H. Con. Res. 9: JOINT SESSION—STATE OF THE UNION Providing for a joint session of Congress to receive a message from the President on the state of the Union. House Concurrent Resolution9 Jan. 22, 1997
JOINT SESSION—STATE OF THE UNION
Providing for a joint session of Congress to receive a message from the President on the state of the Union.

Jan. 22, 1997

[H. Con. Res. 9]

 Resolved by the House of Representatives (the Senate concurring),
That the two Houses of Congress assemble in the Hall of the House of Representatives on Tuesday, February 4, 1997, at 9 p.m., for the purpose of receiving such communication as the President of the United States shall be pleased to make to them.
Agreed to January 22, 1997.
H. Con. Res. 21: ADJOURNMENT—HOUSE OF REPRESENTATIVES AND SENATE Providing for an adjournment of both Houses. House Concurrent Resolution21 Feb. 13, 1997
ADJOURNMENT—HOUSE OF REPRESENTATIVES AND SENATE
Providing for an adjournment of both Houses.

Feb. 13, 1997

[H. Con. Res. 21]

 Resolved by the House of Representatives (the Senate concurring),
That when the House adjourns on the legislative day of Thursday, February 13, 1997, it stand adjourned until 12:30 p.m. on Tuesday, February 25, 1997, or until noon on the second day after Members are notified to reassemble pursuant to section 2 of this concurrent resolution, whichever occurs first; and that when the Senate adjourns or recesses at the close of business on Thursday, February 13, 1997, pursuant to a motion made by the Majority Leader, or his designee, in accordance with this concurrent resolution, it stand recessed or adjourned until 11:30 a.m. on Monday, 111 STAT. 2705February 24, 1997, or such time on that day as may be specified by the Majority Leader or his designee in the motion to recess or adjourn, or until noon on the second day after Members are notified to reassemble pursuant to section 2 of this concurrent resolution, whichever occurs first.
Sec. 2. The Speaker of the House and the Majority Leader of the Senate, acting jointly after consultation with the Minority Leader of the House and the Minority Leader of the Senate, shall notify the Members of the House and the Senate, respectively, to reassemble whenever, in their opinion, the public interest shall warrant it.
Agreed to February 13, 1997.
S. Con. Res. 4: WARREN CHRISTOPHER—COMMENDATION Senate Concurrent Resolution4 Mar. 5, 1997
WARREN CHRISTOPHER—COMMENDATION

Mar. 5, 1997

[S. Con. Res. 4]

 Whereas Secretary Warren Christopher served as Secretary of State from 1993 until 1997, and maintained the tradition of that Office by representing the international interests of the United States with great dignity, grace, and ability; Whereas Secretary Christopher, during his tenure as Secretary of State, engaged in more international travel than any other Secretary of State in United States history, reflecting his indefatigable commitment to advancing peace and justice, protecting and promoting United States interests, and preserving United States leadership in international affairs; Whereas Secretary Christopher has played a key leadership role in United States foreign policy achievements, including ending the war in Bosnia, restoring an elected government in Haiti, and advancing peace in the Middle East; Whereas Secretary Christopher served with distinction as Deputy Secretary of State from 1977 until 1981 and, among his accomplishments as Deputy Secretary, is credited with skillfully negotiating the release of American hostages in Iran; Whereas Secretary Christopher has had a distinguished career in law and public service in California; Whereas Secretary Christopher, born in Scranton, North Dakota, is one of North Dakota’s most distinguished native sons and has always displayed the quiet strength and work ethic associated with the people of the Great Plains; Whereas in 1997 Secretary Christopher leaves his position as the sixty-third Secretary of State; and Whereas Secretary Christopher has earned the respect and admiration of Congress and the American people: Now, therefore, be it Resolved by the Senate (the House of Representatives concurring),
That Congress commends and thanks the Honorable Warren Christopher for his exemplary diplomatic service, and for his skillful and indefatigable efforts to advance peace and justice around the world.
Agreed to March 5, 1997.
S. Con. Res. 14: ADJOURNMENT—SENATE AND HOUSE OF REPRESENTATIVES Senate Concurrent Resolution14 Mar. 21, 1997
111 STAT. 2706 ADJOURNMENT—SENATE AND HOUSE OF REPRESENTATIVES

Mar. 21, 1997

[S. Con. Res. 14]

 Resolved by the Senate (the House of Representatives concurring),
That when the Senate recesses or adjourns at the close of business on Thursday, March 20, 1997, Friday, March 21, 1997, or Saturday, March 22, 1997, pursuant to a motion made by the Majority Leader or his designee in accordance with this resolution, it stand recessed or adjourned until noon on Monday, April 7, 1997, or until such time on that day as may be specified by the Majority Leader or his designee in the motion to recess or adjourn, or until noon on the second day after Members are notified to reassemble pursuant to section 2 of this concurrent resolution, whichever occurs first; and that when the House adjourns on the legislative day of Thursday, March 20, 1997, Friday, March 21, 1997, or Saturday, March 22, 1997, it stand adjourned until 12:30 p.m. on Tuesday, April 8, 1997, or until noon on the second day after Members are notified to reassemble pursuant to section 2 of this concurrent resolution, whichever occurs first.
Sec. 2. The Majority Leader of the Senate and the Speaker of the House, acting jointly after consultation with the Minority Leader of the Senate and the Minority Leader of the House, shall notify the Members of the Senate and House, respectively, to reassemble whenever, in their opinion, the public interest shall warrant it.
Agreed to March 21, 1997.
H. Con. Res. 11: DAYS OF REMEMBERANCE OF VICTIMS OF THE HOLOCAUST COMMEMORATION CEREMONY—CAPITOL ROTUNDA AUTHORIZATION Permitting the use of the rotunda of the Capitol for a ceremony as part of the commemoration of the days of remembrance of victims of the Holocaust. House Concurrent Resolution11 Apr. 10, 1997
DAYS OF REMEMBERANCE OF VICTIMS OF THE HOLOCAUST COMMEMORATION CEREMONY—CAPITOL ROTUNDA AUTHORIZATION
Permitting the use of the rotunda of the Capitol for a ceremony as part of the commemoration of the days of remembrance of victims of the Holocaust.

Apr. 10, 1997

[H. Con. Res. 11]

 Resolved by the House of Representatives (the Senate concurring),
That the rotunda of the Capitol is authorized to be used from 8 o’clock ante meridiem until 3 o’clock post meridiem on May 8, 1997, for a ceremony as part of the commemoration of the days of remembrance of victims of the Holocaust. Physical preparations for the ceremony shall be carried out in accordance with such conditions as the Architect of the Capitol may prescribe.
Agreed to April 10, 1997.
H. Con. Res. 61: JACKIE ROBINSON—LIFETIME ACHIEVEMENTS Honoring the lifetime achievements of Jackie Robinson. House Concurrent Resolution61 May 1, 1997
JACKIE ROBINSON—LIFETIME ACHIEVEMENTS
Honoring the lifetime achievements of Jackie Robinson.

May 1, 1997

[H. Con. Res. 61]

 Whereas Jackie Robinson was the first four sport letterman at the University of California at Los Angeles; 111 STAT. 2707 Whereas on April 15, 1947, Jackie Robinson was the first African-American to cross the color barrier and play for a major league baseball team; Whereas Jackie Robinson, whose career began in the Negro Leagues, went on to be named Rookie of the Year and subsequently led the Brooklyn Dodgers to six National League pennants and a World Series championship; Whereas Jackie Robinson’s inspiring career earned him recognition as the first African-American to win a batting title, lead the league in stolen bases, play in an All-Star game, win a Most Valuable Player award, play in the World Series and be elected to baseball’s Hall of Fame; Whereas after retiring from baseball Jackie Robinson was active in the civil rights movement and founded the first bank owned by African-Americans in New York City; Whereas his legacy continues to uplift the Nation through the Jackie Robinson Foundation that has provided 425 scholarships to needy students; Whereas Jackie Robinson’s courage, dignity, and example taught the Nation that what matters most is not the color of a man’s skin but rather the content of his character; Whereas Jackie Robinson, in his career, consistently demonstrated that how you play the game is more important than the final score; Whereas Jackie Robinson’s life and heritage help make the American dream more accessible to all; and Whereas April 15, 1997, marks the 50th anniversary of Jackie Robinson’s entrance into major league baseball: Now, therefore, be it Resolved by the House of Representatives (the Senate concurring),
That the achievements and contributions of Jackie Robinson be honored and celebrated; that his dedication and sacrifice be recognized; and that his contributions to African-Americans and to the Nation be remembered.
Agreed to May 1, 1997.
H. Con. Res. 25: JACK SWIGERT STATUE—NATIONAL STATUARY HALL Providing for acceptance of a statue of Jack Swigert, presented by the State of Colorado, for placement in National Statuary Hall. House Concurrent Resolution25 May 8, 1997
JACK SWIGERT STATUE—NATIONAL STATUARY HALL
Providing for acceptance of a statue of Jack Swigert, presented by the State of Colorado, for placement in National Statuary Hall.

May 8, 1997

[H. Con. Res. 25]

 Resolved by the House of Representatives (the Senate concurring),
That (a) the statue of Jack Swigert, furnished by the State of Colorado for placement in National Statuary Hall in accordance with section 1814 of the Revised Statutes of the United States (40 U.S.C. 187), is accepted in the name of the United States, and the thanks of the Congress are tendered to the State of Colorado for providing this commemoration of one of its most eminent personages. (b) The State of Colorado is authorized to use the rotunda of the Capitol on May 22, 1997, at 11 o’clock, ante meridiem, for a presentation ceremony for the statue. The Architect of the Capitol and the Capitol Police Board shall take such action as may be 111 STAT. 2708necessary with respect to physical preparations and security for the ceremony. (c) The statue shall be displayed in the rotunda of the Capitol for a period of not more than six months, after which period the statue shall be moved to its permanent location in National Statuary Hall.
Sec. 2. The Clerk of the House of Representatives shall transmit a copy of this concurrent resolution to the Governor of Colorado.
Agreed to May 8, 1997.
H. Con. Res. 66: NATIONAL PEACE OFFICERS’ MEMORIAL SERVICE—CAPITOL GROUNDS AUTHORIZATION Authorizing the use of the Capitol Grounds for the sixteenth annual National Peace Officers’ Memorial Service. House Concurrent Resolution66 May 14, 1997
NATIONAL PEACE OFFICERS’ MEMORIAL SERVICE—CAPITOL GROUNDS AUTHORIZATION
Authorizing the use of the Capitol Grounds for the sixteenth annual National Peace Officers’ Memorial Service.

May 14, 1997

[H. Con. Res. 66]

 Resolved by the House of Representatives (the Senate concurring),
SECTION 1. USE OF CAPITOL GROUNDS FOR NATIONAL PEACE OFFICERS’ MEMORIAL SERVICE. The National Fraternal Order of Police and its auxiliary shall be permitted to sponsor a public event, the sixteenth annual National Peace Officers’ Memorial Service, on the Capitol Grounds on May 15, 1997, or on such other date as the Speaker of the House of Representatives and the President pro tempore of the Senate may jointly designate, in order to honor the more than 117 law enforcement officers who died in the line of duty during 1996.
SEC. 2. TERMS AND CONDITIONS. (a) In General.—The event authorized to be conducted on the Capitol Grounds under section 1 shall be free of admission charge to the public and arranged not to interfere with the needs of Congress, under conditions to be prescribed by the Architect of the Capitol and the Capitol Police Board. (b) Expenses and Liabilities.—The National Fraternal Order of Police and its auxiliary shall assume full responsibility for all expenses and liabilities incident to all activities associated with the event.
SEC. 3. EVENT PREPARATIONS. (a) Structures and Equipment.—Subject to the approval of the Architect of the Capitol, the National Fraternal Order of Police and its auxiliary are authorized to erect upon the Capitol Grounds such stage, sound amplification devices, and other related structures and equipment, as may be required for the event authorized to be conducted on the Capitol Grounds under section 1. (b) Additional Arrangements.—The Architect of the Capitol and the Capitol Police Board are authorized to make any such additional arrangements as may be required to carry out the event.
Agreed to May 14, 1997.
H. Con. Res. 49: SOAP BOX DERBY RACES—CAPITOL GROUNDS AUTHORIZATION Authorizing the use of the Capitol Grounds for the Greater Washington Soap Box Derby. House Concurrent Resolution49 May 20, 1997
111 STAT. 2709 SOAP BOX DERBY RACES—CAPITOL GROUNDS AUTHORIZATION
Authorizing the use of the Capitol Grounds for the Greater Washington Soap Box Derby.

May 20, 1997

[H. Con. Res. 49]

 Resolved by the House of Representatives (the Senate concurring),
SECTION 1. AUTHORIZATION OF SOAP BOX DERBY RACES ON CAPITOL GROUNDS. The Greater Washington Soap Box Derby Association (hereinafter in this resolution referred to as the “Association”) shall be permitted to sponsor a public event, soap box derby races, on the Capitol Grounds on July 12, 1997, or on such other date as the Speaker of the House of Representatives and the President pro tempore of the Senate may jointly designate.
SEC. 2. CONDITIONS. The event to be carried out under this resolution shall be free of admission charge to the public and arranged not to interfere with the needs of Congress, under conditions to be prescribed by the Architect of the Capitol and the Capitol Police Board; except that the Association shall assume full responsibility for all expenses and liabilities incident to all activities associated with the event.
SEC. 3. STRUCTURES AND EQUIPMENT. For the purposes of this resolution, the Association is authorized to erect upon the Capitol Grounds, subject to the approval of the Architect of the Capitol, such stage, sound amplification devices, and other related structures and equipment as may be required for the event to be carried out under this resolution.
SEC. 4. ADDITIONAL ARRANGEMENTS. The Architect of the Capitol and the Capitol Police Board are authorized to make any such additional arrangements that may be required to carry out the event under this resolution.
Agreed to May 20, 1997.
S. Con. Res. 26: CEREMONY FOR MOTHER TERESA—CAPITOL ROTUNDA AUTHORIZATION Senate Concurrent Resolution26 May 20, 1997
CEREMONY FOR MOTHER TERESA—CAPITOL ROTUNDA AUTHORIZATION

May 20, 1997

[S. Con. Res. 26]

 Whereas Mother Teresa of Calcutta has greatly enhanced the lives of people in all walks of life in every comer of the world through her faith, her love, and her selfless dedication to humanity and charitable works for nearly 70 years; Whereas Mother Teresa founded the Missionaries of Charity, which includes more than 3,000 members in 25 countries who devote their lives to serving the poor, without accepting any material reward in return; Whereas Mother Teresa has been recognized as an outstanding humanitarian around the world and has been honored by: The first Pope John XXIII Peace Prize (1971); the Jawaharal Nehru 111 STAT. 2710Award for International Understanding (1972); the Nobel Peace Prize (1979); and the Presidential Medal of Freedom (1985); Whereas Mother Teresa has forever enhanced the culture and history of the world; and Whereas Mother Teresa truly leads by example and shows the people of the world the way to live by love for all humanity: Now, therefore, be it Resolved by the Senate (the House of Representatives concurring),
That the rotunda of the Capitol is authorized to be used on June 5, 1997, for a congressional ceremony honoring Mother Teresa. Physical preparations for the ceremony shall be carried out in accordance with such conditions as the Architect of the Capitol may prescribe.
Agreed to May 20, 1997.
H. Con. Res. 67: 1997 SPECIAL OLYMPIC TORCH RELAY—CAPITOL GROUNDS AUTHORIZATION Authorizing the 1997 Special Olympics Torch Relay to be run through the Capitol Grounds. House Concurrent Resolution67 May 21, 1997
1997 SPECIAL OLYMPIC TORCH RELAY—CAPITOL GROUNDS AUTHORIZATION
Authorizing the 1997 Special Olympics Torch Relay to be run through the Capitol Grounds.

May 21, 1997

[H. Con. Res. 67]

 Resolved by the House of Representatives (the Senate concurring),
SECTION 1. AUTHORIZATION OF RUNNING OF SPECIAL OLYMPICS TORCH RELAY THROUGH CAPITOL GROUNDS. On June 13, 1997, or on such other date as the Speaker of the House of Representatives and the President pro tempore of the Senate may jointly designate, the 1997 Special Olympics Torch Relay may be run through the Capitol Grounds, as part of the journey of the Special Olympics torch to the District of Columbia Special Olympics summer games at Gallaudet University in the District of Columbia.
SEC. 2. RESPONSIBILITY OF CAPITOL POLICE BOARD. The Capitol Police Board shall take such actions as may be necessary to carry out section 1.
SEC. 3. CONDITIONS RELATING TO PHYSICAL PREPARATIONS. The Architect of the Capitol may prescribe conditions for physical preparations for the event authorized by section 1.
Agreed to May 21, 1997.
H. Con. Res. 84: FEDERAL BUDGET—FISCAL YEAR 1998 Establishing the congressional budget for the United States Government for fiscal year 1998 and setting forth appropriate budgetary levels for fiscal years 1999, 2000, 2001, and 2002. House Concurrent Resolution84 June 5, 1997
FEDERAL BUDGET—FISCAL YEAR 1998
Establishing the congressional budget for the United States Government for fiscal year 1998 and setting forth appropriate budgetary levels for fiscal years 1999, 2000, 2001, and 2002.

June 5, 1997

[H. Con. Res. 84]

 Resolved by the House of Representatives (the Senate concurring), 111 STAT. 2711
SECTION 1. CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 1998. (a) Declaration.—The Congress determines and declares that this resolution is the concurrent resolution on the budget for fiscal year 1998 including the appropriate budgetary levels for fiscal years 1999, 2000, 2001, and 2002 as required by section 301 of the Congressional Budget Act of 1974. (b) Table of Contents.—The table of contents for this concurrent resolution is as follows: Sec. 1. TITLE I— Sec. 101. Sec. 102. Sec. 103. Sec. 104. Sec. 105. TITLE II— Sec. 201. Sec. 202. Sec. 203. Sec. 204. Sec. 205. Sec. 206. Sec. 207. Sec. 207A. Sec. 208. Sec. 209. Sec. 210. Sec. 211. Sec. 212. Sec. 213. TITLE III— Subtitle A— Sec. 301. Sec. 302. Sec. 303. Subtitle B— Sec. 306. Sec. 307. Sec. 308. Sec. 309. Subtitle C— Sec. 311. Sec. 312. Sec. 313. Sec. 314. Sec. 315. Sec. 316. Sec. 317. Sec. 318. Sec. 319. Sec. 320. Sec. 321. Sec. 322. Sec. 323. Sec. 324. Sec. 325. 111 STAT. 2712 Sec. 326. Sec. 327. Sec. 328. Sec. 329. Sec. 330. Sec. 331. Sec. 332. Sec. 333. Sec. 334. Sec. 336. Sec. 336. Sec. 337. Sec. 338. Sec. 339. Sec. 340. Sec. 341. Sec. 342. Sec. 343.
<num value="I">TITLE I—</num><heading>LEVELS AND AMOUNTS</heading> <section><num value="101">SEC. 101. </num><heading>RECOMMENDED LEVELS AND AMOUNTS.</heading> <chapeau>The following budgetary levels are appropriate for the fiscal years 1998, 1999, 2000, 2001, and 2002:</chapeau> <paragraph class="indent0 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Federal revenues.</inline>—</heading><chapeau>For purposes of the enforcement of this resolution—</chapeau> <subparagraph class="indentUp1 fontsize10"><num value="A">(A) </num><content>The recommended levels of Federal revenues are as follows: <list> <listItem><listContent class="indent2 fontsize10 depth0">  Fiscal year 1998: $1,199,000,000,000.</listContent></listItem> <listItem><listContent class="indent2 fontsize10 depth0">  Fiscal year 1999: $1,241,900,000,000.</listContent></listItem> <listItem><listContent class="indent2 fontsize10 depth0">  Fiscal year 2000: $1,285,600,000,000.</listContent></listItem> <listItem><listContent class="indent2 fontsize10 depth0">  Fiscal year 2001: $1,343,600,000,000.</listContent></listItem> <listItem><listContent class="indent2 fontsize10 depth0">  Fiscal year 2002: $1,407,600,000,000.</listContent></listItem> </list></content></subparagraph> <subparagraph class="indentUp1 fontsize10"><num value="B">(B) </num><content>The amounts by which the aggregate levels of Federal revenues should be changed are as follows: <list> <listItem><listContent class="indent2 fontsize10 depth0">  Fiscal year 1998: $ – 7,400,000,000.</listContent></listItem> <listItem><listContent class="indent2 fontsize10 depth0">  Fiscal year 1999: $ – 11,100,000,000.</listContent></listItem> <listItem><listContent class="indent2 fontsize10 depth0">  Fiscal year 2000: $ – 22,000,000,000.</listContent></listItem> <listItem><listContent class="indent2 fontsize10 depth0">  Fiscal year 2001: $ – 22,800,000,000.</listContent></listItem> <listItem><listContent class="indent2 fontsize10 depth0">  Fiscal year 2002: $ – 19,900,000,000.</listContent></listItem> </list></content></subparagraph> <subparagraph class="indentUp1 fontsize10"><num value="C">(C) </num><content>The amounts for Federal Insurance Contributions Act revenues for hospital insurance within the recommended levels of Federal revenues are as follows: <list> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1998: $113,500,000,000.</listContent></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1999: $119,100,000,000.</listContent></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2000: $125,100,000,000.</listContent></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2001: $130,700,000,000.</listContent></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2002: $136,800,000,000.</listContent></listItem> </list></content></subparagraph></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">New budget authority</inline>.—</heading><content>For purposes of the enforcement of this resolution, the appropriate levels of total new budget authority are as follows: <list> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 1998: $1,386,700,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 1999: $1,440,100,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 2000: $1,486,400,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 2001: $1,520,200,000,000. <page identifier="/us/stat/111/2713">111 STAT. 2713</page></listContent></listItem> <listItem><listContent class="indent0 fontsize10 depth0">    Fiscal year 2002: $1,551,600,000,000.</listContent></listItem> </list></content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Budget outlays.</inline>—</heading><content>For purposes of the enforcement of this resolution, the appropriate levels of total budget outlays are as follows: <list> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 1998: $1,372,000,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 1999: $1,424,100,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 2000: $1,468,800,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 2001: $1,500,700,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 2002: $1,515,900,000,000.</listContent></listItem> </list></content></paragraph> <paragraph class="indent0 fontsize10"><num value="4">(4) </num><heading><inline class="smallCaps">Deficits.</inline>—</heading><content>For purposes of the enforcement of this resolution, the amounts of the deficits are as follows: <list> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 1998: $ – 173,000,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 1999: $ – 182,200,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 2000: $ – 183,200,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 2001: $ – 157,100,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 2002: $ – 108,300,000,000.</listContent></listItem> </list></content></paragraph> <paragraph class="indent0 fontsize10"><num value="5">(5) </num><heading><inline class="smallCaps">Public debt</inline>.—</heading><content>The appropriate levels of the public debt are as follows: <list> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 1998: $5,593,500,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 1999: $5,841,000,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 2000: $6,088,600,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 2001: $6,307,300,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 2002: $6,481,200,000,000.</listContent></listItem> </list></content></paragraph> <paragraph class="indent0 fontsize10"><num value="6">(6) </num><heading><inline class="smallCaps">Direct loan obligations</inline>.—</heading><content>The appropriate levels of total new direct loan obligations are as follows: <list> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 1998: $34,000,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 1999: $33,400,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 2000: $34,900,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 2001: $36,100,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 2002: $37,400,000,000.</listContent></listItem> </list></content></paragraph> <paragraph class="indent0 fontsize10"><num value="7">(7) </num><heading><inline class="smallCaps">Primary loan guarantee commitments</inline>.—</heading><content>The appropriate levels of new primary loan guarantee commitments are as follows: <list> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 1998: $315,700,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 1999: $324,900,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 2000: $328,200,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 2001: $332,200,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 2002: $335,300,000,000.</listContent></listItem> </list></content></paragraph></section> <section><num value="102">SEC. 102. </num><heading>SOCIAL SECURITY.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Social Security Revenues.</inline>—</heading><content>For purposes of Senate enforcement under sections 302, 602, and 311 of the Congressional Budget Act of 1974, the amounts of revenues of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund are as follows: <list> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 1998: $402,800,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 1999: $422,300,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 2000: $442,600,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 2001: $461,600,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 2002: $482,800,000,000.</listContent></listItem> </list> </content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Social Security Outlays</inline>.—</heading><content>For purposes of Senate enforcement under sections 302, 602, and 311 of the Congressional Budget Act of 1974, the amounts of outlays of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund are as follows: <list> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 1998: $317,600,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 1999: $330,600,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 2000: $343,600,000,000.<page identifier="/us/stat/111/2714">111 STAT. 2714</page></listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 2001: $358,100,000,000.</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">    Fiscal year 2002: $372,500,000,000.</listContent></listItem> </list></content></subsection></section> <section><num value="103">SEC. 103. </num><heading>MAJOR FUNCTIONAL CATEGORIES.</heading> <chapeau>The Congress determines and declares that the appropriate levels of new budget authority, budget outlays, new direct loan obligations, and new primary loan guarantee commitments for fiscal years 1998 through 2002 for each major functional category are:</chapeau> <paragraph class="indent0 fontsize10"><num value="1">(1) </num><content>National Defense (050): <list> <listItem><listContent class="indent1 fontsize10 depth0">  Fiscal year 1998:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $268,200,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $266,000,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $600,000,000.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1999:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $270,800,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $265,800,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $800,000,000.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2000:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $274,800,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $268,400,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $1,100,000,000.</listContent></listItem></list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2001:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $281,300,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $270,100,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $1,100,000,000.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2002:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $289,100,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $272,600,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $1,100,000,000.</listContent></listItem> </list></listItem> </list></content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>International Affairs (150): <list> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1998:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $15,900,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $14,600,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $2,000,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $12,800,000,000.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1999:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $14,900,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $14,600,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $2,000,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $13,100,000,000.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2000:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $15,800,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $15,000,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $2,100,000,000.<page identifier="/us/stat/111/2715">111 STAT. 2715</page></listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $13,400,000,000.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2001:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $16,100,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $14,800,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $2,100,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $13,800,000,000.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2002:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $16,400,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $14,800,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $2,200,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $14,200,000,000.</listContent></listItem> </list></listItem> </list></content></paragraph> <paragraph class="indent0 fontsize10"><num value="3">(3) </num><content>General Science, Space, and Technology (250): <list> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1998:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $16,200,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $16,900,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1999:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $16,200,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $16,500,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2000:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $15,900,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $16,000,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2001:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $15,800,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $15,900,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2002:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $15,600,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $15,700,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem></list></content></paragraph> <paragraph class="indent0 fontsize10"><num value="4">(4) </num><content>Energy (270): <list> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1998:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $3,100,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $2 200,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $1,100,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1999:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $3,500,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $2,400,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $1,100,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2000:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $3,200,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $2,300,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $1,100,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2001:<page identifier="/us/stat/111/2716">111 STAT. 2716</page></listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $2,900,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $2,000,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $1,100,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2002:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $2,800,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $1,900,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $1,200,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem></list></content></paragraph> <paragraph class="indent0 fontsize10"><num value="5">(5) </num><content>Natural Resources and Environment (300): <list> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1998:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $23,900,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $22,400,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $100,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1999:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $23,200,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $22,700,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $100,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2000:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $22,600,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $23,000,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $100,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2001:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $22,200,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $22,700,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $100,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2002:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $22,100,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $22,300,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $100,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem></list></content></paragraph> <paragraph class="indent0 fontsize10"><num value="6">(6) </num><content>Agriculture (350): <list> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1998:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $13,100,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $11,900,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $9,600,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $6,400,000,000.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1999:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $12,800,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $11,300,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $11,000,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $6,400,000,000.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2000:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $12,200,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $10,700,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $11,100,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $6,500,000,000.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2001:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $11,000,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $9,500,000,000.<page identifier="/us/stat/111/2717">111 STAT. 2717</page></listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $11,000,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $6,600,000,000.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2002:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $10,700,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $9,100,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $11,000,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $6,700,000,000.</listContent></listItem> </list></listItem></list></content></paragraph> <paragraph class="indent0 fontsize10"><num value="7">(7) </num><content>Commerce and Housing Credit (370): <list> <listItem><listContent class="indent2 fontsize10 depth0">  Fiscal year 1998:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $6,600,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, – $900,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $4,700,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $245,500,000,000.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1999:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $11,100,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $4,300,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $1,900,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $253,500,000,000.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2000:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $15,200,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $9,800,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $2,200,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $255,200,000,000.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2001:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $16,100,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $12,100,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $2,600,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $258,000,000,000.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2002:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $16,700,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $12,500,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $2,700,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $259,900,000,000.</listContent></listItem> </list></listItem></list></content></paragraph> <paragraph class="indent0 fontsize10"><num value="8">(8) </num><content>Transportation (400): <list> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1998:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $46,400,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $40,900,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $200,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1999:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $46,600,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $41,300,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $100,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2000:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $47,100,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $41,400,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $100,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2001:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $48,100,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $41,300,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $100,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2002:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $49,200,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $41,200,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $100,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem></list></content></paragraph> <paragraph class="indent0 fontsize10"><num value="9">(9) </num><content>Community and Regional Development (450): <list> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1998:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $8,800,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $10,400,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $2,900,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $2,400,000,000.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1999:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $8,500,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $10,900,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $2,900,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $2,400,000,000.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2000:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $7,800,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $11,000,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $3,000,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $2,400,000,000.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2001:<page identifier="/us/stat/111/2718">111 STAT. 2718</page></listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $7,800,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $11,400,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $3,100,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $2,500,000,000.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2002:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $7,800,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $8,400,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $3,200,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $2,500,000,000.</listContent></listItem> </list></listItem></list></content></paragraph> <paragraph class="indent0 fontsize10"><num value="10">(10) </num><content>Education, Training, Employment, and Social Services (500): <list> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1998:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $60,000,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $56,100,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $12,300,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $20,700,000,000.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1999:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $60,500,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $59,300,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $13,100,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $21,900,000,000.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2000:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $61,700,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $60,700,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $13,900,000,000.<page identifier="/us/stat/111/2719">111 STAT. 2719</page></listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $23,300,000,000.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2001:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $63,000,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $61,900,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $14,700,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $24,500,000,000.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2002:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $63,300,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $62,300,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $15,400,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $25,700,000,000.</listContent></listItem> </list></listItem></list></content></paragraph> <paragraph class="indent0 fontsize10"><num value="11">(11) </num><content>Health (550): <list> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1998:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $137,800,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $137,800,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $100,000,000.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1999:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $145,000,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $144,900,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2000:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $154,100,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $153,900,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2001:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $163,400,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $163,100,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2002:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $172,200,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $171,700,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem></list></content></paragraph> <paragraph class="indent0 fontsize10"><num value="12">(12) </num><content>Medicare (570): <list> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1998:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $201,600,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $201,800,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1999:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $212,100,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $211,500,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2000:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $225,500,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $225,500,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.<page identifier="/us/stat/111/2720">111 STAT. 2720</page></listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2001:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $239,600,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $238,800,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2002:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $251,500,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $250,800,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem></list></content></paragraph> <paragraph class="indent0 fontsize10"><num value="13">(13) </num><content>Income Security (600): <list> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1998:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $239,000,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $247,800,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $100,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $100,000,000.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1999:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $254,100,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $258,100,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $100,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $100,000,000.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2000:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $269,600,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $268,200,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $100,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $100,000,000.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2001:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $275,100,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $277,300,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $100,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $100,000,000.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2002:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $286,900,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $285,200,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $200,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $100,000,000.</listContent></listItem> </list></listItem></list></content></paragraph> <paragraph class="indent0 fontsize10"><num value="14">(14) </num><content>Social Security (650): <list> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1998:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $11,400,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $11,500,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1999:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $12,100,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $12,200,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2000:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $12,800,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $12,900,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.<page identifier="/us/stat/111/2721">111 STAT. 2721</page></listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2001:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $13,000,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $13,000,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2002:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $14,400,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $14,400,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem></list> </listItem></list></content></paragraph> <paragraph class="indent0 fontsize10"><num value="15">(15) </num><content>Veterans Benefits and Services (700): <list> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1998:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $40,500,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $41,300,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $1,000,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $27,100,000,000.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1999:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $41,500,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $41,700,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $1,100,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $26,700,000,000.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2000:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $41,700,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $41,900,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $1,200,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $26,200,000,000.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2001:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $42,100,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $42,200,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $1,200,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $25,600,000,000.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2002:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $42,300,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $42,400,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $1,300,000,000.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $25,100,000,000.</listContent></listItem> </list></listItem></list></content></paragraph> <paragraph class="indent0 fontsize10"><num value="16">(16) </num><content>Administration of Justice (750): <list> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1998:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $24,800,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $22,600,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1999:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $25,100,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $24,500,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2000:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $24,200,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $25,200,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.<page identifier="/us/stat/111/2722">111 STAT. 2722</page></listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2001:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $24,400,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $25,900,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2002:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $24,900,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $24,900,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem></list></content></paragraph> <paragraph class="indent0 fontsize10"><num value="17">(17) </num><content>General Government (800): <list> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1998:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $14,700,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $14,000,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1999:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $14,400,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $14,400,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2000:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $14,000,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $14,700,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2001:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $13,700,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $14,100,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2002:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $13,100,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $13,100,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem></list></content></paragraph> <paragraph class="indent0 fontsize10"><num value="18">(18) </num><content>Net Interest (900): <list> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1998:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $296,500,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $296,500,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1999:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $304,600,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $304,600,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2000:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $305,100,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $305,100,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2001:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $303,800,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $303,800,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.<page identifier="/us/stat/111/2723">111 STAT. 2723</page></listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2002:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $303,700,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $303,700,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem></list> </listItem></list></content></paragraph> <paragraph class="indent0 fontsize10"><num value="19">(19) </num><content>Allowances (920): <list> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1998:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $0.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $0.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1999:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $0.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $0.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2000:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $0.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $0.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2001:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $0.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $0.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2002:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, $0.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, $0.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem></list></content></paragraph> <paragraph class="indent0 fontsize10"><num value="20">(20) </num><content>Undistributed Offsetting Receipts (950): <list> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1998:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, – $41,800,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, – $41,800,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 1999:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, – $36,900,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, – $36,900,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2000:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, – $36,900,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, – $36,900,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2001:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, – $39,200,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, – $39,200,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.</listContent></listItem> </list></listItem> <listItem><listContent class="indent0 fontsize10 depth0">  Fiscal year 2002:</listContent> <list> <listItem><num value="A"> (A) </num><listContent class="indent0 fontsize10 depth0">New budget authority, -$51,100,000,000.</listContent></listItem> <listItem><num value="B"> (B) </num><listContent class="indent0 fontsize10 depth0">Outlays, – $51,100,000,000.</listContent></listItem> <listItem><num value="C"> (C) </num><listContent class="indent0 fontsize10 depth0">New direct loan obligations, $0.</listContent></listItem> <listItem><num value="D"> (D) </num><listContent class="indent0 fontsize10 depth0">New primary loan guarantee commitments, $0.<page identifier="/us/stat/111/2724">111 STAT. 2724</page></listContent></listItem> </list></listItem></list></content></paragraph> </section> <section><num value="104">SEC. 104. </num><heading>RECONCILIATION IN THE SENATE.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Reconciliation of Spending Reductions.</inline>—</heading><chapeau>Not later than June 13, 1997, the committees named in this subsection shall submit their recommendations to the Committee on the Budget of the Senate. After receiving those recommendations, the Committee on the Budget shall report to the Senate a reconciliation bill carrying out all such recommendations without any substantive revision.</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Committee on agriculture, nutrition, and forestry</inline>.—</heading><content>The Senate Committee on Agriculture, Nutrition, and Forestry shall report changes in laws within its jurisdiction that provide direct spending (as defined in section 250(c)(8) of the Balanced Budget and Emergency Deficit Control Act of 1985) to increase outlays by not more than $300,000,000 in fiscal year 2002 and by not more than $1,500,000,000 for the period of fiscal years 1998 through 2002.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Committee on banking, housing, and urban affairs</inline>.—</heading><content>The Senate Committee on Banking, Housing, and Urban Affairs shall report changes in laws within its jurisdiction that reduce the deficit $434,000,000 in fiscal year 2002 and $1,590,000,000 for the period of fiscal years 1998 through 2002.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Committee on commerce, science, and transportation</inline>.—</heading><content>The Senate Committee on Commerce, Science, and Transportation shall report changes in laws within its jurisdiction that reduce the deficit $14,849,000,000 in fiscal year 2002 and $26,496,000,000 for the period of fiscal years 1998 through 2002.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><heading><inline class="smallCaps">Committee on energy and natural resources</inline>.—</heading><content>The Senate Committee on Energy and Natural Resources shall report changes in laws within its jurisdiction that provide direct spending (as defined in section 250(c)(8) of the Balanced Budget and Emergency Deficit Control Act of 1985) to reduce outlays $6,000,000 in fiscal year 2002 and $13,000,000 for the period of fiscal years 1998 through 2002.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><heading><inline class="smallCaps">Committee on finance</inline>.—</heading><chapeau>The Senate Committee on Finance shall report changes in laws within its jurisdiction—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>that provide direct spending (as defined in section 250(c)(8) of the Balanced Budget and Emergency Deficit Control Act of 1985) to reduce outlays $40,911,000,000 in fiscal year 2002 and $100,646,000,000 for the period of fiscal years 1998 through 2002; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>to increase the statutory limit on the public debt to not more than $5,950,000,000,000.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><heading><inline class="smallCaps">Committee on governmental affairs</inline>.—</heading><content>The Senate Committee on Governmental Affairs shall report changes in laws within its jurisdiction that reduce the deficit $1,769,000,000 in fiscal year 2002 and $5,467,000,000 for the period of fiscal years 1998 through 2002.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><heading><inline class="smallCaps">Committee on labor and human resources</inline>.—</heading><content>The Senate Committee on Labor and Human Resources shall report changes in laws within its jurisdiction that provide direct spending (as defined in section 250(c)(8) of the Balanced Budget and Emergency Deficit Control Act of 1985) to reduce outlays $1,057,000,000 in fiscal year 2002 and $1,792,000,000 for the period of fiscal years 1998 through 2002.</content></paragraph> <page identifier="/us/stat/111/2725">111 STAT. 2725</page> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><heading><inline class="smallCaps">Committee on veterans’ affairs</inline>.—</heading><content>The Senate Committee on Veterans’ Affairs shall report changes in laws within its jurisdiction that provide direct spending (as defined in section 250(c)(8) of the Balanced Budget and Emergency Deficit Control Act of 1985) to reduce outlays $681,000,000 in fiscal year 2002 and $2,733,000,000 for the period of fiscal years 1998 through 2002.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Reconciliation of Revenue Reductions</inline>.—</heading><content>Not later than June 20, 1997, the Senate Committee on Finance shall report to the Senate a reconciliation bill proposing changes in laws within its jurisdiction necessary to reduce revenues by not more than $20,500,000,000 in fiscal year 2002 and $85,000,000,000 for the period of fiscal years 1998 through 2002.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Treatment of Congressional Pay-As-You-Go.</inline>—</heading><content>For purposes of section 202 of House Concurrent Resolution 67 (104th Congress), legislation which reduces revenues pursuant to a reconciliation instruction contained in subsection (b) shall be taken together with all other legislation passed pursuant to the reconciliation instructions contained in this resolution when determining the deficit effect of such legislation.</content></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Children’s Health Initiative</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Deficit neutral adjustments</inline>.—</heading><content>After the reporting of reconciliation legislation pursuant to subsection (a), or after the submission of a conference report thereon, and if the Committee on Finance reduces outlays by an amount greater than the outlay reduction that is required by subsection (a)(5)(A), the Chairman of the Committee on the Budget of the Senate, with the concurrence and agreement of the ranking minority member, may submit in writing appropriately revised (A) reconciliation instructions to the Committee on Finance to reduce the deficit, (B) allocations, (C) limits, and (D) aggregates.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Flexibility on adjustments</inline>.—</heading><content>The adjustments made pursuant to this subsection shall not exceed $2,300,000,000 in fiscal year 1998 and $16,000,000,000 for the period of fiscal years 1998 through 2002 and shall not cause an increase in the deficit levels in this resolution.</content></paragraph></subsection></section> <section><num value="105">SEC. 105. </num><heading>RECONCILIATION IN THE HOUSE OF REPRESENTATIVES.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Purpose.</inline>—</heading><content>The purpose of this section is to provide for two separate reconciliation bills: the first for entitlement reform and the second for tax relief.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Submissions</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Entitlement reforms</inline>.—</heading><content>Not later than June 13, 1997, the House committees named in subsection (c) shall submit their recommendations to the House Committee on the Budget. After receiving those recommendations, the House Committee on the Budget shall report to the House a reconciliation bill carrying out all such recommendations without any substantive revision.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Tax relief and miscellaneous reforms</inline>.—</heading><content>Not later than June 14, 1997, the House committees named in subsection (d) shall submit their recommendations to the House Committee on the Budget. After receiving those recommendations, the House Committee on the Budget shall report to the House a reconciliation bill carrying out all such recommendations without any substantive revision.</content></paragraph></subsection> <page identifier="/us/stat/111/2726">111 STAT. 2726</page> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Instructions Relating to Entitlement Reforms</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Committee on agriculture.</inline>—</heading><content>The House Committee on Agriculture shall report changes in laws within its jurisdiction that provide direct spending such that the total level of direct spending for that committee does not exceed: $34,571,000,000 in outlays for fiscal year 1998, $37,008,000,000 in outlays for fiscal year 2002, and $179,884,000,000 in outlays in fiscal years 1998 through 2002.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Committee on banking and financial services</inline>.—</heading><content>The House Committee on Banking and Financial Services shall report changes in laws within its jurisdiction that provide direct spending such that the total level of direct spending for that committee does not exceed: – $8,435,000,000 in outlays for fiscal year 1998, – $5,091,000,000 in outlays for fiscal year 2002, and – $32,743,000,000 in outlays in fiscal years 1998 through 2002.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Committee on commerce.</inline>—</heading><content>The House Committee on Commerce shall report changes in laws within its jurisdiction that provide direct spending such that the total level of direct spending for that committee does not exceed: $393,533,000,000 in outlays for fiscal year 1998, $507,150,000,000 in outlays for fiscal year 2002, and $2,259,294,000,000 in outlays in fiscal years 1998 through 2002.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><heading><inline class="smallCaps">Committee on education and the workforce</inline>.—</heading><content>The House Committee on Education and the Workforce shall report changes in laws within its jurisdiction that provide direct spending such that the total level of direct spending for that committee does not exceed: $17,222,000,000 in outlays for fiscal year 1998, $17,673,000,000 in outlays for fiscal year 2002, and $89,528,000,000 in outlays in fiscal years 1998 through 2002.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><heading><inline class="smallCaps">Committee on government reform and oversight.</inline>—</heading><subparagraph class="inline"><num value="A">(A) </num><content>The House Committee on Government Reform and Oversight shall report changes in laws within its jurisdiction that provide direct spending such that the total level of direct spending for that committee does not exceed: $68,975,000,000 in outlays for fiscal year 1998, $81,896,000,000 in outlays for fiscal year 2002, and $375,722,000,000 in outlays in fiscal years 1998 through 2002.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">(B) </num><content>The House Committee on Government Reform and Oversight shall report changes in laws within its jurisdiction that would reduce the deficit by: $0 in fiscal year 1998, $621,000,000 in fiscal year 2002, and $1,829,000,000 in fiscal years 1998 through 2002.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><heading><inline class="smallCaps">Committee on transportation and infrastructure</inline>.—</heading><content>The House Committee on Transportation and Infrastructure shall report changes in laws within its jurisdiction that provide direct spending such that the total level of direct spending for that committee does not exceed: $18,087,000,000 in outlays for fiscal year 1998, $17,283,000,000 in outlays for fiscal year 2002, and $88,711,000,000 in outlays in fiscal years 1998 through 2002.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><heading><inline class="smallCaps">Committee on veterans’ affairs</inline>.—</heading><content>The House Committee on Veterans’ Affairs shall report changes in laws within its jurisdiction that provide direct spending such that the total level of direct spending for that committee does not exceed: $22,444,000,000 in outlays for fiscal year 1998, <page identifier="/us/stat/111/2727">111 STAT. 2727</page>$24,563,000,000 in outlays for fiscal year 2002, and $117,959,000,000 in outlays in fiscal years 1998 through 2002.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><heading><inline class="smallCaps">Committee on ways and means</inline>.—</heading><subparagraph class="inline"><num value="A">(A) </num><content>The House Committee on Ways and Means shall report changes in laws within its jurisdiction such that the total level of direct spending for that committee does not exceed: $397,581,000,000 in outlays for fiscal year 1998, $506,522,000,000 in outlays for fiscal year 2002, and $2,257,912,000,000 in outlays in fiscal years 1998 through 2002.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">(B) </num><content>The House Committee on Ways and Means shall report changes in laws within its jurisdiction such that the total level of revenues for that committee is not less than: $1,172,136,000,000 in revenues for fiscal year 1998, $1,382,679,000,000 in revenues for fiscal year 2002, and $6,358,388,000,000 in revenues in fiscal years 1998 through 2002.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">(C) </num><content>The House Committee on Ways and Means shall report changes in laws within its jurisdiction to increase the statutory limit on the public debt to not more than $5,950,000,000,000.</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Instructions Relating to Tax Relief and Miscellaneous Reforms</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Committee on agriculture</inline>.—</heading><content>The House Committee on Agriculture shall report changes in laws within its jurisdiction that provide direct spending such that the total level of direct spending for that committee does not exceed: $34,571,000,000 in outlays for fiscal year 1998, $37,008,000,000 in outlays for fiscal year 2002, and $179,884,000,000 in outlays in fiscal years 1998 through 2002.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Committee on banking and financial services</inline>.—</heading><content>The House Committee on Banking and Financial Services shall report changes in laws within its jurisdiction that provide direct spending such that the total level of direct spending for that committee does not exceed: – $8,435,000,000 in outlays for fiscal year 1998, – $5,091,000,000 in outlays for fiscal year 2002, and – $32,743,000,000 in outlays in fiscal years 1998 through 2002.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><heading><inline class="smallCaps">Committee on commerce</inline>.—</heading><content>The House Committee on Commerce shall report changes in laws within its jurisdiction that provide direct spending such that the total level of direct spending for that committee does not exceed: $393,533,000,000 in outlays for fiscal year 1998, $507,150,000,000 in outlays for fiscal year 2002, and $2,259,294,000,000 in outlays in fiscal years 1998 through 2002.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><heading><inline class="smallCaps">Committee on education and the workforce</inline>.—</heading><content>The House Committee on Education and the Workforce shall report changes in laws within its jurisdiction that provide direct spending such that the total level of direct spending for that committee does not exceed: $17,222,000,000 in outlays for fiscal year 1998, $17,673,000,000 in outlays for fiscal year 2002, and $89,528,000,000 in outlays in fiscal years 1998 through 2002.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><heading><inline class="smallCaps">Committee on government reform and oversight</inline>.—</heading><subparagraph class="inline"><num value="A">(A) </num><content>The House Committee on Government Reform and Oversight shall report changes in laws within its jurisdiction that provide direct spending such that the total level of direct spending for that committee does not exceed: $68,975,000,000 in outlays for fiscal year 1998, $81,896,000,000 in outlays for <page identifier="/us/stat/111/2728">111 STAT. 2728</page>fiscal year 2002, and $375,722,000,000 in outlays in fiscal years 1998 through 2002.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">(B) </num><content>The House Committee on Government Reform and Oversight shall report changes in laws within its jurisdiction that would reduce the deficit by: $0 in fiscal year 1998, $621,000,000 in fiscal year 2002, and $1,829,000,000 in fiscal years 1998 through 2002.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><heading><inline class="smallCaps">Committee on transportation and infrastructure</inline>.—</heading><content>The House Committee on Transportation and Infrastructure shall report changes in laws within its jurisdiction that provide direct spending such that the total level of direct spending for that committee does not exceed: $18,087,000,000 in outlays for fiscal year 1998, $17,283,000,000 in outlays for fiscal year 2002, and $88,711,000,000 in outlays in fiscal years 1998 through 2002.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><heading><inline class="smallCaps">Committee on veterans’ affairs</inline>.—</heading><content>The House Committee on Veterans’ Affairs shall report changes in laws within its jurisdiction that provide direct spending such that the total level of direct spending for that committee does not exceed: $22,444,000,000 in outlays for fiscal year 1998, $24,563,000,000 in outlays for fiscal year 2002, and $117,959,000,000 in outlays in fiscal years 1998 through 2002.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><heading><inline class="smallCaps">Committee on ways and means</inline>.—</heading><subparagraph class="inline"><num value="A">(A) </num><content>The House Committee on Ways and Means shall report changes in laws within its jurisdiction such that the total level of direct spending for that committee does not exceed: $397,581,000,000 in outlays for fiscal year 1998, $506,522,000,000 in outlays for fiscal year 2002, and $2,257,912,000,000 in outlays in fiscal years 1998 through 2002.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="B">(B) </num><content>The House Committee on Ways and Means shall report changes in laws within its jurisdiction such that the total level of revenues for that committee is not less than: $1,164,736,000,000 in revenues for fiscal year 1998, $1,362,179,000,000 in revenues for fiscal year 2002, and $6,273,388,000,000 in revenues in fiscal years 1998 through 2002.</content></subparagraph> <subparagraph class="indent0 fontsize10"><num value="C">(C) </num><content>The House Committee on Ways and Means shall report changes in laws within its jurisdiction to increase the statutory limit on the public debt to not more than $5,950,000,000,000.</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><heading><inline class="smallCaps">Definition</inline>.—</heading><content>For purposes of this section, the term “direct spending” has the meaning given to such term in section 250(c)(8) of the Balanced Budget and Emergency Deficit Control Act of 1985.</content></subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><heading><inline class="smallCaps">Children’s Health Initiative</inline>.—</heading><content>If the Committees on Commerce and Ways and Means report recommendations pursuant to their reconciliation instructions that, combined, provide an initiative for children’s health that would increase the deficit by more than $2.3 billion for fiscal year 1998, by more than $3.9 billion for fiscal year 2002, and by more than $16 billion for the period of fiscal years 1998 through 2002, the committees shall be deemed to not have complied with their reconciliation instructions pursuant to section 310(d) of the Congressional Budget Act of 1974.</content></subsection></section> <page identifier="/us/stat/111/2729">111 STAT. 2729</page> <num value="II">TITLE II—</num><heading>BUDGETARY RESTRAINTSAND RULEMAKING</heading> <section><num value="201">SEC. 201. </num><heading>DISCRETIONARY SPENDING LIMITS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Discretionary Limits.</inline>—</heading><chapeau>In the Senate, in this section and for the purposes of allocations made for the discretionary category pursuant to section 302(a) or 602(a) of the Congressional Budget Act of 1974, the term “discretionary spending limit” means—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>with respect to fiscal year 1998—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>for the defense category $269,000,000,000 in new budget authority and $266,823,000,000 in outlays; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>for the nondefense category $257,857,000,000 in new budget authority and $286,445,000,000 in outlays;</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>with respect to fiscal year 1999—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>for the defense category $271,500,000,000 in new budget authority and $266,518,000,000 in outlays; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>for the nondefense category $261,499,000,000 in new budget authority and $292,803,000,000 in outlays;</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>with respect to fiscal year 2000, for the discretionary category $537,193,000,000 in new budget authority and $564,265,000,000 in outlays;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>with respect to fiscal year 2001, for the discretionary category $542,032,000,000 in new budget authority and $564,396,000,000 in outlays; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>with respect to fiscal year 2002, for the discretionary category $551,074,000,000 in new budget authority and $560,799,000,000 in outlays;</content></paragraph> <continuation class="indent0 fontsize10">as adjusted for changes in concepts and definitions and emergency appropriations.</continuation></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Point of Order in the Senate</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Except as provided in paragraph (2), it shall not be in order in the Senate to consider—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>a revision of this resolution or any concurrent resolution on the budget for fiscal years 1999, 2000, 2001, or 2002 (or amendment, motion, or conference report on such a resolution) that provides discretionary spending in excess of the discretionary spending limit or limits for such fiscal year; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>any bill or resolution (or amendment, motion, or conference report on such bill or resolution) for fiscal year 1998, 1999, 2000, 2001, or 2002 that would cause any of the limits in this section (or suballocations of the discretionary limits made pursuant to section 602(b) of the Congressional Budget Act of 1974) to be exceeded.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Exception.—</inline></heading> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>This section shall not apply if a declaration of war by the Congress is in effect or if a joint resolution pursuant to section 258 of the Balanced Budget and Emergency Deficit Control Act of 1985 has been enacted.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><heading><inline class="smallCaps">Enforcement of discretionary limits in fiscal year 1998</inline>.—</heading><chapeau>Until the enactment of reconciliation legislation pursuant to subsections (a) and (b) of section 104 of this resolution—</chapeau> <clause class="indent3 fontsize10"><num value="i">(i) </num><content>subparagraph (A) of paragraph (1) shall not apply; and</content></clause> <page identifier="/us/stat/111/2730">111 STAT. 2730</page> <clause class="indent3 fontsize10"><num value="ii">(ii) </num><content>subparagraph (B) of paragraph (1) shall apply only with respect to fiscal year 1998.</content></clause></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Waiver</inline>.—</heading><content>This section may be waived or suspended in the Senate only by the affirmative vote of three-fifths of the Members, duly chosen and sworn.</content></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Appeals</inline>.—</heading><content>Appeals in the Senate from the decisions of the Chair relating to any provision of this section shall be limited to 1 hour, to be equally divided between, and controlled by, the appellant and the manager of the concurrent resolution, bill, or joint resolution, as the case may be. An affirmative vote of three-fifths of the Members of the Senate, duly chosen and sworn, shall be required in the Senate to sustain an appeal of the ruling of the Chair on a point of order raised under this section.</content></subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><heading><inline class="smallCaps">Determination of Budget Levels</inline>.—</heading><content>For purposes of this section, the levels of new budget authority, outlays, new entitlement authority, revenues, and deficits for a fiscal year shall be determined on the basis of estimates made by the Committee on the Budget of the Senate.</content></subsection></section> <section><num value="202">SEC. 202. </num><heading>ALLOWANCE FOR THE IMF.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Adjustments.</inline>—</heading><chapeau>In the Senate, for fiscal year 1998, 1999, 2000, 2001, or 2002, and in the House of Representatives, for fiscal year 1998 or 1999, after the reporting of an appropriations measure (or after the submission of a conference report thereon) that includes an appropriation with respect to paragraph (1) or (2), the chairman of the Committee on the Budget shall increase the appropriate allocations, budgetary aggregates, and, in the Senate only, discretionary limits, by the amount of budget authority in that measure that is the dollar equivalent, in terms of Special Drawing Rights, of—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>an increase in the United States quota as part of the International Monetary Fund Eleventh General Review of Quotas (United States Quota); or</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>any increase in the maximum amount available to the Secretary of the Treasury pursuant to section 17 of the Bretton Woods Agreement Act, as amended from time to time (New Arrangements to Borrow).</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Committee Suballocations</inline>.—</heading><content>The Committee on Appropriations may report to its House appropriately revised suballocations pursuant to sections 302(b)(1) and 602(b)(1) of the Congressional Budget Act of 1974 following the adjustments made pursuant to subsection (a).</content></subsection></section> <section><num value="203">SEC. 203. </num><heading>ALLOWANCE FOR SECTION 8 HOUSING ASSISTANCE.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Adjustment for Discretionary Spending.—</inline></heading><content>For fiscal year 1998, after the reporting of an appropriation measure (or after the submission of a conference report thereon) that includes an appropriation for the renewal of expiring contracts for tenant- and project-based housing assistance under section 8 of the United States Housing Act of 1937, the chairman of the Committee on the Budget may increase the appropriate allocations in this resolution by the amount provided in that appropriation measure for that purpose, but not to exceed $9,200,000,000 in budget authority and the appropriate amount of outlays.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Committee Suballocations</inline>.—</heading><content>The Committee on Appropriations may report to its House appropriately revised suballocations pursuant to sections 302(b)(1) and 602(b)(1) of the Congressional <page identifier="/us/stat/111/2731">111 STAT. 2731</page>Budget Act of 1974 following the adjustments made pursuant to subsection (a).</content></subsection></section> <section><num value="204">SEC. 204. </num><heading>SEPARATE ENVIRONMENTAL ALLOCATION.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Committee Allocations.</inline>—</heading><chapeau>After the Committee on Commerce and the Committee on Transportation and Infrastructure report a bill (or after the submission of a conference report thereon) or in the Senate, after the Committee on Environment and Public Works reports a bill (or after the submission of a conference report thereon) to reform the Superfund program to facilitate the cleanup of hazardous waste sites that does not exceed—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>$200,000,000 in budget authority for fiscal year 1998,</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>$200,000,000 in outlays for fiscal year 2002, and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>$1,000,000,000 in budget authority for the period of fiscal years 1998 through 2002,</content></paragraph> <continuation class="indent0 fontsize10">the chairman of the Committee on the Budget of that House may increase the appropriate allocations of budget authority in this resolution by the amounts provided in that nil! for that purpose and the outlays flowing in all years from such budget authority.</continuation></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Prior Surplus</inline>.—</heading><content>In the Senate, for the purposes of section 202 of House Concurrent Resolution 67 (104th Congress), legislation reported (or the submission of a conference report thereon) pursuant to subsection (a) shall be taken together with all other legislation passed pursuant to section 104 of this resolution.</content></subsection></section> <section><num value="205">SEC. 205. </num><heading>PRIORITY FEDERAL LAND ACQUISITIONS AND EXCHANGES.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Adjustment for Discretionary Spending.</inline>—</heading><content>For fiscal year 1998, after the reporting of an appropriation measure (or after the submission of a conference report thereon) that provides $700 million in budget authority for fiscal year 1998 for Federal land acquisitions and to finalize priority Federal land exchanges, the Chairman of the Committee on the Budget of each House shall increase the appropriate allocations by that amount of budget authority and the outlays flowing from such budget authority to the Committee on Appropriations of that House.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Committee Suballocations</inline>.—</heading><content>The Committee on Appropriations may report to its House appropriately revised suballocations pursuant to sections 302(b)(1) and 602(b)(1) of the Congressional Budget Act of 1974 following the adjustments made pursuant to subsection (a).</content></subsection></section> <section><num value="206">SEC. 206. </num><heading>ALLOWANCE FOR ARREARAGES.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Adjustment for Discretionary Spending.</inline>—</heading><paragraph class="inline"><num value="1">(1) </num><content>In the Senate, for the period of fiscal years 1998 through 2002, or in the House of Representatives, for the period of fiscal years 1998 and 1999, after the reporting of an appropriations measure (or after the submission of a conference report thereon) that includes an appropriation for arrearages for international organizations, international peacekeeping, and multilateral development banks during that fiscal year, the Chairman of the Committee on the Budget shall increase the appropriate allocations, aggregates, and, in the Senate only, discretionary spending limits, in this resolution by an amount provided for that purpose in that appropriation measure.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>In the Senate, the adjustments described in paragraph (1) for the period of fiscal years 1998 through 2002 may not exceed $1,884,000,000 in budget authority and the outlays flowing in all years from such budget authority.</content></paragraph></subsection> <page identifier="/us/stat/111/2732">111 STAT. 2732</page> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Committee Suballocations</inline>.—</heading><content>The Committee on Appropriations shall report to its House appropriately revised suballocations pursuant to sections 302(b)(1) and 602(b)(1) of the Congressional Budget Act of 1974 following the adjustments made pursuant to subsection (a).</content></subsection></section> <section><num value="207">SEC. 207. </num><heading>INTERCITY PASSENGER RAIL RESERVE FUND FOR FISCAL YEARS 1998–2002.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">In General.</inline>—</heading><content>If legislation is enacted which generates revenue increases or direct spending reductions to finance an intercity passenger rail fund and to the extent that such increases or reductions are not included in this concurrent resolution on the budget, the appropriate budgetary levels and limits may be adjusted if such adjustments do not cause an increase in the deficit in this resolution. Necessary authorizing reforms and additional funding contained in this reserve fund for intercity passenger rail should both occur in this Session, and if such funds are appropriated before the enactment of such reforms, such appropriated funds shall not be made available until the enactment of such reforms.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Establishing a Reserve</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Adjustments to capture savings</inline>.—</heading><content>After the enactment of legislation described in subsection (a), the Chairman of the Committee on the Budget may submit revisions to the appropriate allocations and aggregates by the amount that provisions in such legislation generates revenue increases or direct spending reductions.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Determination of maximum discretionary allowance</inline>.—</heading><content>Upon the submission of such revisions, the Chairman of the Committee on the Budget shall also submit the amount of revenue increases or direct spending reductions such legislation generates and the maximum amount available each year for adjustments pursuant to subsection (c).</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Adjustments for Discretionary Spending</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Revisions to allocations and aggregates</inline>.—</heading><chapeau>After either—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the reporting of an appropriations measure, or after a conference committee submits a conference report thereon, that appropriates funds for the National Railroad Passenger Corporation and funds from the intercity passenger rail fund; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the reporting of an appropriations measure, or after a conference committee submits a conference report thereon, that appropriates funds from the intercity passenger rail fund (funds having previously been appropriated for the National Railroad Passenger Corporation for that same fiscal year),</content></subparagraph> <continuation class="indent1 fontsize10">the Chairman of the Committee on the Budget may submit increased budget authority allocations, aggregates, and, in the Senate only, discretionary limits, for the amount appropriated for authorized expenditures from the intercity passenger rail fund and the outlays in all years flowing from such budget authority.</continuation></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Revisions to suballocations</inline>.—</heading><content>The Committee on Appropriations may submit appropriately revised suballocations pursuant to sections 302(b)(1) and 602(b)(1) of the Congressional Budget Act of 1974.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Limitations</inline>.—</heading> <page identifier="/us/stat/111/2733">111 STAT. 2733</page> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The revisions made pursuant to subsection (b) shall not be made—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>with respect to direct spending reductions, unless the committee that generates the direct spending reductions is within its allocations under sections 302(a) and 602(a) of the Budget Act in this resolution (not including the direct spending reductions envisioned in subsection (b)); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>with respect to revenue increases, unless revenues are at or above the revenue aggregates in this resolution (not including the revenue increases envisioned in subsection (b)).</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Budget authority</inline>.—</heading><content>The budget authority adjustments made pursuant to subsection (c) shall not exceed the amounts specified in subsection (b)(2) for a fiscal year.</content></paragraph></subsection></section> <section><num value="207A">SEC. 207A. </num><heading>INTERCITY PASSENGER RAIL RESERVE FUND IN THE SENATE FOR FISCAL YEARS 1998–2002.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">In General.</inline>—</heading><content>In the Senate, if legislation is enacted which generates revenue increases or direct spending reductions to finance an intercity passenger rail fund and to the extent that such increases or reductions are not included in this concurrent resolution on the budget, the appropriate budgetary levels and limits may be adjusted if such adjustments do not cause an increase in the deficit in this resolution.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Establishing a Reserve</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Adjustments to capture savings</inline>.—</heading><content>After the enactment of legislation described in subsection (a), the Chairman of the Committee on the Budget of the Senate may submit revisions to the appropriate allocations and aggregates by the amount that provisions in such legislation generates revenue increases or direct spending reductions.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Determination of maximum discretionary allowance</inline>.—</heading><content>Upon the submission of such revisions, the Chairman of the Committee on the Budget of the Senate shall also submit the amount of revenue increases or direct spending reductions such legislation generates and the maximum amount available each year for adjustments pursuant to subsection (c).</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Adjustments for Discretionary Spending</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Revisions to allocations and aggregates</inline>.—</heading><chapeau>After either—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the reporting of an appropriations measure, or after a conference committee submits a conference report thereon, that appropriates funds for the National Railroad Passenger Corporation and funds from the intercity passenger rail fund; or</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the reporting of an appropriations measure, or after a conference committee submits a conference report thereon, that appropriates funds from the intercity passenger rail fund (funds having previously been appropriated for the National Railroad Passenger Corporation for that same fiscal year),</content></subparagraph> <continuation class="indent1 fontsize10">the Chairman of the Committee on the Budget of the Senate may submit increased budget authority allocations, aggregates, and discretionary limits, for the amount appropriated for authorized expenditures from the intercity passenger rail fund and the outlays in all years flowing from such budget authority.</continuation></paragraph> <page identifier="/us/stat/111/2734">111 STAT. 2734</page> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Revisions to suballocations</inline>.—</heading><content>The Committee on Appropriations of the Senate may submit appropriately revised suballocations pursuant to sections 302(b)(1) and 602(b)(1) of the Congressional Budget Act of 1974.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Limitations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The revisions made pursuant to subsection (b) shall not be made—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>with respect to direct spending reductions, unless the committee that generates the direct spending reductions is within its allocations under sections 302(a) and 602(a) of the Budget Act in this resolution (not including the direct spending reductions envisioned in subsection (b)); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>with respect to revenue increases, unless revenues are at or above the revenue aggregates in this resolution (not including the revenue increases envisioned in subsection (b)).</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Budget authority</inline>.—</heading><content>The budget authority adjustments made pursuant to subsection (c) shall not exceed the amounts specified in subsection (b)(2) for a fiscal year.</content></paragraph></subsection></section> <section><num value="208">SEC. 208. </num><heading>MASS TRANSIT RESERVE FUND IN THE SENATE FOR FISCAL YEARS 1998–2002.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">In General.</inline>—</heading><content>In the Senate, if legislation generates revenue increases or direct spending reductions to finance mass transit and to the extent that such increases or reductions are not included in this concurrent resolution on the budget, the appropriate budgetary levels and limits may be adjusted if such adjustments do not cause an increase in the deficit in this resolution.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Adjustment for Budget Authority</inline>.—</heading><content>After the reporting of legislation (the offering of an amendment thereto or conference report thereon) that reduces non-mass transit direct spending or increases revenues for a fiscal year or years, the Chairman of the Committee on the Budget of the Senate may submit appropriately revised allocations and aggregates by an amount that equals the amount such legislation reduces direct spending or increases revenues for a fiscal year or years.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Establishing a Reserve.</inline>—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Revisions</inline>.—</heading><content>After the enactment of legislation described in subsection (a), the Chairman of the Committee on the Budget of the Senate may submit revisions to the appropriate allocations and aggregates by the amount that provisions in such legislation generates revenue increases or direct nonhighway spending reductions.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Revenue increases or direct spending reductions</inline>.—</heading><content>After the submission of such revisions, the Chairman of the Committee on the Budget of the Senate shall also submit the amount of revenue increases or non-mass transit direct spending reductions such legislation generates and the maximum amount available each year for adjustments pursuant to subsection (d).</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Adjustments for Discretionary Spending</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Revisions to allocations and aggregates</inline>.—</heading><content>After the reporting of an appropriations measure, or after a conference committee submits a conference report thereon, that makes available funds for mass transit, the Chairman of the Committee on the Budget of the Senate shall submit increased <page identifier="/us/stat/111/2735">111 STAT. 2735</page>outlay allocations, aggregates, and discretionary limits for the amount of outlays flowing from the additional obligational authority provided in such bill.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Revisions to suballocations</inline>.—</heading><content>The Committee on Appropriations of the Senate may submit appropriately revised suballocations pursuant to sections 302(b)(1) and 602(b)(1) of the Congressional Budget Act of 1974.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><heading><inline class="smallCaps">Limitations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The revisions made pursuant to subsection (c) shall not be made—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>with respect to non-mass transit direct spending reductions, unless the committee that generates the direct spending reductions is within its allocations under sections 302(a) and 602(a) of the Budget Act in this resolution (not including the non-mass transit direct spending reductions envisioned in subsection (c)); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>with respect to revenue increases, unless revenues are at or above the revenue aggregates in this resolution (not including the revenue increases envisioned in subsection (c)).</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Outlays</inline>.—</heading><content>The outlay adjustments made pursuant to subsection (d) shall not exceed the amounts specified in subsection (c)(2) for a fiscal year.</content></paragraph></subsection></section> <section><num value="209">SEC. 209. </num><heading>HIGHWAY RESERVE FUND IN THE SENATE FOR FISCAL YEARS 1998–2002.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">In General.</inline>—</heading><content>In the Senate, if legislation generates revenue increases or direct spending reductions to finance highways and to the extent that such increases or reductions are not included in this concurrent resolution on the budget, the appropriate budgetary levels and limits may be adjusted if such adjustments do not cause an increase in the deficit in this resolution.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Adjustments for Budget Authority</inline>.—</heading><content>After the reporting of legislation (the offering of an amendment thereto or conference report thereon) that reduces nonhighway direct spending or increases revenues for a fiscal year or years, the Chairman of the Committee on the Budget of the Senate may submit appropriately revised allocations and aggregates by an amount that equals the amount such legislation reduces direct spending or increases revenues for a fiscal year or years.</content></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Establishing a Reserve</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Revisions</inline>.—</heading><content>After the enactment of legislation described in subsection (a), the Chairman of the Committee on the Budget of the Senate may submit revisions to the appropriate allocations and aggregates by the amount that provisions in such legislation generates revenue increases or non-highway direct spending reductions.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Revenue increases or direct spending reductions</inline>.—</heading><content>Upon the submission of such revisions, the Chairman of the Committee on the Budget of the Senate shall also submit the amount of revenue increases or direct nonhighway spending reductions such legislation generates and the maximum amount available each year for adjustments pursuant to subsection (d).</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Adjustments for Discretionary Spending</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Revisions to allocations and aggregates</inline>.—</heading><content>After the reporting of an appropriations measure, or after a conference <page identifier="/us/stat/111/2736">111 STAT. 2736</page>committee submits a conference report thereon, that makes available funds for highways, the Chairman of the Committee on the Budget of the Senate shall submit increased outlay allocations, aggregates, and discretionary limits for the amount of outlays flowing from the additional obligational authority provided in such measure.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Revisions to suballocations</inline>.—</heading><content>The Committee on Appropriations of the Senate may submit appropriately revised suballocations pursuant to sections 302(b)(1) and 602(b)(1) of the Congressional Budget Act of 1974.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><heading><inline class="smallCaps">Limitations</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The revisions made pursuant to subsection (c) shall not be made—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>with respect to nonhighway direct spending reductions, unless the committee that generates the direct spending reductions is within its allocations under section 302(a) and 602(a) of the Budget Act in this resolution (not including the nonhighway direct spending reductions envisioned in subsection (c)); and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>with respect to revenue increases, unless revenues are at or above the revenue aggregates in this resolution (not including the revenue increases envisioned in subsection (c)).</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Outlays</inline>.—</heading><content>The outlay adjustments made pursuant to subsection (d) shall not exceed the amounts specified in subsection (c)(2) for a fiscal year.</content></paragraph></subsection></section> <section><num value="210">SEC. 210. </num><heading>DEFICIT-NEUTRAL RESERVE FUND IN THE HOUSE FOR SURFACE TRANSPORTATION.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Purpose.</inline>—</heading><content>In the House, the purpose of this section is to adjust the appropriate budgetary levels to accommodate legislation increasing spending from the highway trust fund on surface transportation and highway safety above the levels assumed in this resolution if such legislation is deficit neutral.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Deficit Neutrality Requirement</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>In order to receive the adjustments specified in subsection (c), a bill reported by the Committee on Transportation and Infrastructure of the House that provides new budget authority above the levels assumed in this resolution for programs authorized out of the highway trust fund must be deficit neutral.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><chapeau>A deficit-neutral bill must meet the following conditions:</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>The amount of new budget authority provided for programs authorized out of the highway trust fund must be in excess of $25,949 billion in new budget authority for fiscal year 1998, $25,464 billion in new budget authority for fiscal year 2002, and $127,973 billion in new budget authority for the period of fiscal years 1998 through 2002.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>The outlays estimated to flow from the excess new budget authority set forth in subparagraph (A) must be offset for fiscal year 1998, fiscal year 2002, and for the period of fiscal years 1998 through 2002. For the sole purpose of estimating the amount of outlays flowing from excess new budget authority under this section, it shall be assumed that such excess new budget authority would have an obligation limitation sufficient to accommodate that new budget authority.</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>The outlays estimated to flow from the excess new budget authority must be offset by (i) other direct spending <page identifier="/us/stat/111/2737">111 STAT. 2737</page>or revenue provisions within that transportation bill, (ii) the net reduction in other direct spending and revenue legislation (for purposes of such offset) that is enacted during this Congress after the date of adoption of this resolution and before such transportation bill is reported (in excess of the levels assumed in this resolution), or (iii) a combination of the offsets specified in clauses (i) and (ii).</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>As used in this section, the term “direct spending” has the meaning given to such term in section 250(c)(8) of the Balanced Budget and Emergency Deficit Control Act of 1985.</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Revised Levels</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>After the Committee on Transportation and Infrastructure of the House reports a bill (or after the submission of a conference report thereon) meeting the conditions set forth in subsection (b)(2), the chairman of the Committee on the Budget of the House shall increase the allocation of new budget authority to that committee by the amount of new budget authority provided in that bill (and that is above the levels set forth in subsection (b)(2)(A)) for programs authorized out of the highway trust fund.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>After the enactment of the transportation bill described in paragraph (1) and after the reporting of a general, supplemental, or continuing resolution making appropriations by the Committee on Appropriations of the House (or after the submission of a conference report thereon) establishing an obligation limitation above the levels specified in subsection (b)(2)(A) (at a level sufficient to obligate some or all of the budget authority specified in paragraph (1)), the chairman of the Committee on the Budget of the House shall increase the allocation and aggregate levels of outlays to that committee for the appropriate fiscal years.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Offsetting Adjustments</inline>.—</heading><content>Upon the enactment of legislation providing offsets pursuant to subsection (c), the chairman of the Committee on the Budget shall make offsetting adjustments in the appropriate allocations and aggregates.</content></subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><heading><inline class="smallCaps">Definition</inline>.—</heading><chapeau>As used in this section, the term “highway trust fund” refers to the following budget accounts (or any successor accounts):</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>69–8083–0–7–401 (Federal-Aid Highways).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>69–8191–0–7–401 (Mass Transit Capital Fund).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>69–8350–0–7–401 (Mass Transit Formula Grants).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>69–8016–0–7–401 (National Highway Traffic Safety Administration-Operations and Research).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>69–8020–0–7–401 (Highway Traffic Safety Grants).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>69–8048–0–7–401 (National Motor Carrier Safety Program).</content></paragraph></subsection></section> <section><num value="211">SEC. 211. </num><heading>SALE OF GOVERNMENT ASSETS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Limitation.</inline>—</heading><content>Subsections (b) through (d) of this section shall not apply to the sale of any asset resulting from the enactment of any reconciliation bill referred to in section 104 or 105 of this resolution.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Budgetary Treatment</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>For the purpose of this concurrent resolution on the budget and the Congressional Budget Act of 1974, no amounts realized from the sale of an asset shall be scored with respect to the level of budget authority, outlays, or revenues <page identifier="/us/stat/111/2738">111 STAT. 2738</page>if such sale would cause an increase in the deficit as calculated pursuant to paragraph (2).</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">Calculation of net present value</inline>.—</heading><chapeau>The deficit estimate of an asset sale shall be the net present value of the cash flow from—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>proceeds from the asset sale;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>future receipts that would be expected from continued ownership of the asset by the Government; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>expected future spending by the Government at a level necessary to continue to operate and maintain the asset to generate the receipts estimated pursuant to subparagraph (B).</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Definition</inline>.—</heading><content>For purposes of this section, the term “sale of an asset” shall have the same meaning as under section 250(c)(21) of the Balanced Budget and Emergency Deficit Control Act of 1985.</content></subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><heading><inline class="smallCaps">Treatment of Loan Assets</inline>.—</heading><content>For the purposes of this section, the sale of loan assets or the prepayment of a loan shall be governed by the terms of the Federal Credit Reform Act of 1990.</content></subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><heading><inline class="smallCaps">Intent</inline>.—</heading><content>The asset sale rule may be revisited when the Budget Enforcement Act of 1990 is extended.</content></subsection></section> <section><num value="212">SEC. 212. </num><heading>DETERMINATIONS OF BUDGETARY LEVELS; REVERSALS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Determinations.</inline>—</heading><content>For purposes of this title, budgetary levels shall be determined on the basis of estimates made By the Committee on the Budget.</content></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Reversals and Adjustments</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>In the House of Representatives, if any legislation referred to in this title is not enacted into law, then the chairman of the Committee on the Budget shall, as soon as practicable, reverse adjustments made under this title for such legislation and have such adjustments published in the Congressional Record.</content></paragraph> <paragraph class="indent0 fontsize10"><num value="2">(2) </num><content>In the Senate, the adjustments and revisions to allocations, aggregates, and limits made by the Chairman of the Committee on the Budget pursuant to this title for legislation shall only apply while such legislation is under consideration in the Senate and shall only permanently take effect upon the enactment of such legislation.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><heading><inline class="smallCaps">Effect of Revisions</inline>.—</heading><content>Any revisions made by the chairman of the Committee on the Budget under this title, and in the Senate, under section 104(d), shall be considered for purposes of the Congressional Budget Act of 1974 as the allocations and aggregates, and in the Senate, the discretionary spending limits, contained in this resolution, and the chairman shall have such revisions published in the Congressional Record.</content></subsection></section> <section><num value="213">SEC. 213. </num><heading>EXERCISE OF RULEMAKING POWERS.</heading> <chapeau>The Congress adopts the provisions of this title—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>as an exercise of the rulemaking power of the Senate and the House of Representatives, respectively, and as such they shall be considered as part of the rules of each House, or of that House to which they specifically apply, and such rules shall supersede other rules only to the extent that they are inconsistent therewith; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>with full recognition of the constitutional right of either House to change those rules (so far as they relate to that House) at any time, in the same manner, and to the same extent as in the case of any other rule of that House.</content></paragraph></section> <page identifier="/us/stat/111/2739">111 STAT. 2739</page> <num value="III">TITLE III—</num><heading>SENSE OF CONGRESS, HOUSE, AND SENATE PROVISIONS</heading> <subtitle><num value="A">Subtitle A—</num><heading>Sense of the Congress</heading> <section><num value="301">SEC. 301. </num><heading>SENSE OF THE CONGRESS ON REPAYMENT OF THE FEDERAL DEBT.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Findings.</inline>—</heading><chapeau>The Congress finds the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The Congress and the President have a basic moral and ethical responsibility to future generations to repay the Federal debt, including the money borrowed from the Social Security Trust Fund.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The Congress and the President should enact a law which creates a regimen for paying off the Federal debt within 30 years.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>If spending growth were held to a level one percentage point lower than projected growth in revenues, then the Federal debt could be repaid within 30 years.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of the Congress Regarding President’s Submission to Congress</inline>.—</heading><chapeau>It is the sense of the Congress that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the President’s annual budget submission to Congress should include a plan for repayment of Federal debt beyond the year 2002, including the money borrowed from the Social Security Trust Fund; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the plan should specifically explain how the President working with Congress would cap spending growth at a level one percentage point lower than projected growth in revenues.</content></paragraph></subsection></section> <section><num value="302">SEC. 302. </num><heading>SENSE OF THE CONGRESS ON TAX CUTS.</heading> <chapeau>It is the sense of the Congress that this resolution assumes that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>a substantial majority of the tax cut benefits provided in the tax reconciliation bill will go to middle class working families earning less than approximately $100,000 per year; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the tax cuts in the tax reconciliation bill will not cause revenue losses to increase significantly in years after 2007.</content></paragraph></section> <section><num value="303">SEC. 303. </num><heading>SENSE OF THE CONGRESS THAT THE 10-YEAR REVENUE LOSS FROM THE TAX RELIEF PACKAGE SHALL NOT EXCEED 3250,000,000,000.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Findings.</inline>—</heading><chapeau>Congress finds that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>a May 15, 1997 letter from the Speaker of the House of Representatives and the Majority Leader of the Senate to the President of the United States, representing the agreement on the tax package in the Bipartisan Budget Agreements, states that, “It was agreed that the net tax cut shall be $85 billion through 2002 and not more than $250 billion through 2007.”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>a May 15, 1997 letter from the Speaker of the House of Representatives and the Majority Leader of the Senate to the Chief of Staff to the President, contained in the same Bipartisan Budget Agreement and referring to the tax package, states that “The proposal shall not cause costs to explode in the outyears.”; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>the text of the Bipartisan Budget Agreement issued on May 15, 1997 states that “<quotedText>If bills, resolutions or conference <page identifier="/us/stat/111/2740">111 STAT. 2740</page>reports are deemed to be inconsistent, remedial efforts shall be made by all parties to assure consistency. Such efforts shall include bipartisan Leadership consultation and concurrence on amendments and scheduling as necessary.</quotedText>”.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of Congress</inline>.—</heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">10-year cost.</inline>—</heading><content>The 10-year cost of the tax reconciliation bill resulting from this resolution shall not exceed $250,000,000,000 and any revenue loss shall be certified by the Joint Committee on Taxation in consultation and cooperation with the Office of Tax Analysis of the Department of Treasury.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading><inline class="smallCaps">5-year cost</inline>.—</heading><content>The 5-year cost of the tax reconciliation bill resulting from this resolution shall be $85,000,000,000 and any revenue loss shall be certified by the Joint Committee on Taxation in consultation and cooperation with the Office of Tax Analysis of the Department of Treasury.</content></paragraph></subsection></section> </subtitle> <subtitle> <num value="B">Subtitle B—</num><heading>Sense of the House</heading> <section><num value="306">SEC. 306. </num><heading>SENSE OF THE HOUSE ON COMMISSION ON LONG-TERM BUDGETARY PROBLEMS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Findings.</inline>—</heading><chapeau>The House finds that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>achieving a balanced budget by fiscal year 2002 is only the first step necessary to restore our Nation’s economic prosperity;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the imminent retirement of the baby-boom generation will greatly increase the demand for government services;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>this burden will be borne by a relatively smaller work force resulting in an unprecedented intergenerational transfer of financial resources;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>the rising demand for retirement and medical benefits will quickly jeopardize the solvency of the Medicare, Social Security, and Federal Retirement Trust Funds; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>the Congressional Budget Office has estimated that marginal tax rates would have to increase by 50 percent over the next 5 years to cover the long-term projected costs of retirement and health benefits.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of the House</inline>.—</heading><content>It is the sense of the House that legislation should be enacted to create a commission to assess long-term budgetary problems, their implications for both the baby-boom generation and tomorrow’s workforce, and make such recommendations as it deems appropriate to ensure our Nation’s future prosperity.</content></subsection></section> <section><num value="307">SEC. 307. </num><heading>SENSE OF THE HOUSE ON CORPORATE WELFARE.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Findings.</inline>—</heading><chapeau>The House finds that the functional levels and aggregates in this budget resolution assume that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the Federal Government supports profit-making enterprises and industries through billions of dollars in payments, benefits, and programs;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>many of these subsidies do not serve a clear and compelling public interest;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>corporate subsidies frequently provide unfair competitive advantages to certain industries and industry segments; and</content></paragraph> <page identifier="/us/stat/111/2741">111 STAT. 2741</page> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>at a time when millions of Americans are being asked to sacrifice in order to balance the budget, the corporate sector should bear its share of the burden.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of the House</inline>.—</heading><chapeau>It is the sense of the House that legislation should be enacted to—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>eliminate the most egregious corporate subsidies; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>create a commission to recommend the elimination of Federal payments, benefits, and programs which predominantly benefit a particular industry or segment of an industry, rather than provide a clear and compelling public benefit, and include a fast-track process for the consideration of those recommendations.</content></paragraph></subsection></section> <section><num value="308">SEC. 308. </num><heading>SENSE OF THE HOUSE ON BASELINES.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Findings.</inline>—</heading><chapeau>The House finds that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>baselines are projections of future spending if existing policies remain unchanged;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>under baseline assumptions, spending automatically rises with inflation even if such increases are not mandated under existing law;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>baseline budgeting is inherently biased against policies that would reduce the projected growth in spending because such policies are portrayed as spending reductions from an increasing baseline; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>the baseline concept has encouraged Congress to abdicate its constitutional obligation to control the public purse for those programs which are automatically funded.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of House</inline>.—</heading><content>It is the sense of the House that baseline budgeting should be replaced with a budgetary model that requires justification of aggregate funding levels and maximizes congressional and executive accountability for Federal spending.</content></subsection></section> <section><num value="309">SEC. 309. </num><heading>SENSE OF THE HOUSE ON FAMILY VIOLENCE OPTION CLARIFYING AMENDMENT.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Findings.</inline>—</heading><chapeau>The House finds the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Domestic violence is the leading cause of physical injury to women. The Department of Justice estimates that over 1,000,000 violent crimes against women are committed by intimate partners annually.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Domestic violence dramatically affects the victim’s ability to participate in the workforce. A University of Minnesota survey reported that one quarter of battered women surveyed had lost a job partly because of being abused and that over half of these women had been harassed by their abuser at work.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Domestic violence is often intensified as women seek to gain economic independence through attending school or training programs. Batterers have been reported to prevent women from attending these programs or sabotage their efforts at self-improvement.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Nationwide surveys of service providers prepared by the Taylor Institute of Chicago, Illinois, document, for the first time, the interrelationship between domestic violence and welfare by showing that from 34 percent to 65 percent of AFDC recipients are current or past victims of domestic violence.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Over half of the women surveyed stayed with their batterers because they lacked the resources to support themselves and their children. The surveys also found that the <page identifier="/us/stat/111/2742">111 STAT. 2742</page>availability of economic support is a critical factor in poor women’s ability to leave abusive situations that threaten them and their children.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>The restructuring of the welfare programs may impact the availability of the economic support and the safety net necessary to enable poor women to flee abuse without risking homelessness and starvation for their families.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>In recognition of this finding, the House Committee on the Budget unanimously passed a sense of Congress amendment on domestic violence and Federal assistance to the fiscal year 1997 budget resolution. Subsequently, Congress passed the family violence option amendment to last year’s welfare reform reconciliation bill.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>The family violence option gives States the flexibility to grant temporary waivers from time limits and work requirements for domestic violence victims who would suffer extreme hardship from the application of these provisions. These waivers were not intended to be included as part of the permanent 20 percent hardship exemption.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><content>The Department of Health and Human Services has been slow to issue regulations regarding this provision. As a result, States are hesitant to fully implement the family violence option fearing it will interfere with the 20 percent hardship exemption.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10) </num><content>Currently 15 States have opted to include the family violence option in their welfare plans, and 13 other States have included some type of domestic violence provisions in their plans.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of the House</inline>.—</heading><chapeau>It is the sense of the House that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>States should not be subject to any numerical limits in granting domestic violence good cause waivers to individuals receiving assistance for all requirements where compliance with such requirements would make it more difficult for individuals receiving assistance to escape domestic violence; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>any individuals granted a domestic violence good cause waiver by States should not be included in the States’ 20 percent hardship exemption.</content></paragraph></subsection></section> </subtitle> <subtitle> <num value="B">Subtitle B—</num><heading>Sense of the Senate</heading> <section><num value="311">SEC. 311. </num><heading>SENSE OF THE SENATE ON LONG TERM ENTITLEMENT REFORMS, INCLUDING ACCURACY IN DETERMINING CHANGES IN THE COST OF LIVING.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Findings.—</inline></heading> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><heading><inline class="smallCaps">Entitlement reforms</inline>.—</heading><chapeau>The Senate finds that with respect to long term entitlement reforms—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>entitlement spending continues to grow dramatically as a percent of total Federal spending, rising from fifty-six percent of the budget in 1987 to an estimated seventy-three percent of the budget in 2007;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>this growth in mandatory spending poses a long-term threat to the United States economy because it crowds out spending for investments in education, infrastructure, defense, law enforcement and other programs that enhance economic growth;</content></subparagraph> <page identifier="/us/stat/111/2743">111 STAT. 2743</page> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>in 1994, the Bipartisan Commission on Entitlement and Tax Reform concluded that if no changes are made to current entitlement laws, all Federal revenues will be spent on entitlement programs and interest on the debt by the year 2012;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>the Congressional Budget Office has also recently issued a report that found that pressure on the budget from demographics and rising health care costs will increase dramatically after 2002; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="E">(E) </num><content>making significant entitlement changes will significantly benefit the economy, and will forestall the need for more drastic tax and spending decisions in future years.</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><heading>CPI.—</heading><chapeau>The Senate finds that with respect to accuracy in determining changes in the cost of living—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>the Final Report of the Senate Finance Committee’s Advisory Commission to study the CPI has concluded that the Consumer Price Index overstates the cost of living in the United States by 1.1 percentage points;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>the overstatement of the cost of living by the Consumer Price Index has been recognized by economists since at least 1961, when a report noting the existence of the overstatement was issued by a National Bureau of Economic Research Committee, chaired by Professor George J. Stigler;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>Congress and the President, through the indexing of Federal tax brackets, Social Security benefits, and other Federal program benefits, have undertaken to protect taxpayers and beneficiaries of such programs from the erosion of purchasing power due to inflation; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>the overstatement of the cost of living increases the deficit and undermines the equitable administration of Federal benefits and tax policies.</content></subparagraph></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of the Senate</inline>.—</heading><chapeau>It is the sense of the Senate that the provisions in this resolution assume that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Congress and the President should continue working to enact structural entitlement reforms in the 1997 budget agreement and in subsequent legislation;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Congress and the President must find the most accurate measure of the change in the cost of living in the United States, and should work in a bipartisan manner to implement any changes that are necessary to achieve an accurate measure; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Congress and the President must work to ensure that the 1997 budget agreement not only keeps the unified budget in balance after 2002, but that additional measures should be taken to begin to achieve substantial surpluses which will improve the economy and allow our nation to be ready for the retirement of the baby boom generation in the year 2012.</content></paragraph></subsection></section> <section><num value="312">SEC. 312. </num><heading>SENSE OF THE SENATE ON TACTICAL FIGHTER AIRCRAFT PROGRAMS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Findings.—</inline></heading><chapeau>The Senate finds that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the Department of Defense has proposed to modernize the United States tactical fighter aircraft force through three tactical fighter procurement programs, including the F/A-18 E/F aircraft program of the Navy, the F-22 aircraft program <page identifier="/us/stat/111/2744">111 STAT. 2744</page>of the Air Force, and the Joint Strike Fighter aircraft program for the Navy, Air Force, and Marine Corps;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the General Accounting Office, the Congressional Budget Office, the Chairman of the Joint Chiefs of Staff, the Under Secretary of Defense for Acquisition and Technology, and several Members of Congress have publicly stated that, given the current Department of Defense budget for procurement, the Department of Defense’s original plan to buy over 4,400 F/A-18 E/F aircraft, F-22 aircraft, and Joint Strike Fighter aircraft at a total program cost in excess of $350,000,000,000 was not affordable;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>the F/A-18 E/F, F-22, and the Joint Strike Fighter tactical fighter programs will be competing for a limited amount of procurement funding with numerous other aircraft acquisition programs, including the Comanche helicopter program, the V—22 Osprey aircraft program, and the C-17 aircraft program, as well as for the necessary replacement of other aging aircraft such as the KC-135, the C-5A, the F-117, and the EA-6B aircraft; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>the 1997 Department of Defense Quadrennial Defense Review has recommended reducing the F/A-18 E/F program buy from 1,000 aircraft to 548, and reducing the F-22 program buy from 438 to 339.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of the Senate</inline>.—</heading><content>It is the sense of the Senate that the provisions of this resolution assume that, within 30 days, the Department of Defense should transmit to Congress detailed information pertaining to the implementation of this revised acquisition strategy so that the Congress can adequately evaluate the extent to which the revised acquisition strategy is tenable and affordable given the projected spending levels contained in this budget resolution.</content></subsection></section> <section><num value="313">SEC. 313. </num><heading>SENSE OF THE SENATE REGARDING CHILDREN’S HEALTH COVERAGE.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Findings.</inline>—</heading><chapeau>The Senate finds that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>of the estimated 10 million uninsured children in the United States, over 1.3 million have at least one parent who is self-employed and all other uninsured children are dependents of persons who are employed by another, or unemployed;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>these 1.3 million uninsured kids comprise approximately 22 percent of all children with self-employed parents, and they are a significant 13 percent of all uninsured children;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>the remaining uninsured children are in families where neither parent is self-employed and comprise 13 percent of all children in families where neither parent is self-employed;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>children in families with a self-employed parent are therefore more likely to be uninsured than children in families where neither parent is self-employed; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>the current disparity in the tax law reduces the affordability of health insurance for the self-employed and their families, hindering the ability of children to receive essential primary and preventive care services.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of the Senate</inline>.—</heading><content>It is the sense of the Senate that the provisions of this resolution assume that from resources available in this budget resolution, a portion should be set aside for an immediate 100 percent deductibility of health insurance costs for the self-employed. Full-deductibility of health expenses for the <page identifier="/us/stat/111/2745">111 STAT. 2745</page>self-employed would make health insurance more attractive and affordable, resulting in more dependents being covered. The government should not encourage parents to forgo private insurance for a government-run program.</content></subsection></section> <section><num value="314">SEC. 314. </num><heading>SENSE OF THE SENATE ON A MEDICAID PER CAPITA CAP.</heading> <chapeau>It is the sense of the Senate that in order to meet deficit reduction targets in this resolution with respect to Medicaid—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the per capita cap will not be used as a method for meeting spending targets; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the per capita cap could represent a significant structural change that might jeopardize the quality of care for children, the disabled, and senior citizens.</content></paragraph></section> <section><num value="315">SEC. 315. </num><heading>SENSE OF THE SENATE THAT ADDED SAVINGS GO TO DEFICIT REDUCTION.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Findings.—</inline></heading><chapeau>The Congress finds that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>balancing the budget will bring numerous economic benefits for the United States economy and American workers and families, including improved economic growth and lower interest rates;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the fiscal year 1998 budget resolution crafted pursuant to an agreement reached between the Congress and the Administration purports to achieve balance in the year 2002;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>the deficit estimates contained in this resolution may not conform to the actual deficits in subsequent years, which make it imperative that any additional savings are realized be devoted to deficit reduction;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>the Senate’s “pay-as-you-go” point of order prohibits crediting savings from updated economic or technical data as an offset for legislation that increases the deficit, and ensures these savings are devoted to deficit reduction; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Congress and the Administration must ensure that the deficit levels contained in this budget are met and, if actual deficits prove to be lower than projected, the additional savings are used to balance the budget on or before the year 2002.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of the Senate</inline>.—</heading><chapeau>It is the sense of the Senate that the provisions of this resolution assume that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>legislation enacted pursuant to this resolution must ensure that the goal of a balanced budget is achieved on or before fiscal year 2002; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>if the actual deficit is lower than the projected deficit in any upcoming fiscal year, the added savings should be devoted to further deficit reduction.</content></paragraph></subsection></section> <section><num value="316">SEC. 316. </num><heading>SENSE OF THE SENATE ON FAIRNESS IN MEDICARE.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Findings.</inline>—</heading><chapeau>The Congress finds that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the Trustees of the Medicare Trust Funds recently announced that Medicare’s Hospital Insurance (HI) Trust Fund is headed for bankruptcy in 2001, and in 1997, HI will run a deficit of $26,000,000,000 and add $56,000,000,000 annually to the Federal deficit by 2001;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the Trustees also project that Supplementary Medical Insurance (SMI), will grow twice as fast as the economy and the taxpayers’ subsidy to keep the SMI from bankruptcy will grow from $58,000,000,000 to $89,000,000,000 annually from 1997 through 2001;</content></paragraph> <page identifier="/us/stat/111/2746">111 STAT. 2746</page> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>the Congressional Budget Office reports that when the baby-boom generation begins to receive Social Security benefits and is eligible for Medicare in 2008, the Federal budget will face intense pressure, resulting in mounting deficits and erosion of future economic growth;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>long-term solutions to address the financial and demographic problems of Medicare are urgently needed to preserve and protect the Medicare Trust Funds;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>these solutions to address the financial and demographic problems of Medicare are urgently needed to preserve and protect the Medicare Trust Funds;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>reform of the Medicare Program should ensure equity and fairness for all Medicare beneficiaries, and offer beneficiaries more choice of private health plans, to promote efficiency and enhance the quality of health care;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>all Americans pay the same payroll tax of 2.9 percent to the Medicare Trust Funds, and they deserve the same choices and services regardless of where they retire;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>however, under the currently adjusted-average-per-capita cost (AAPCC), some counties receive 2.5 times more in Medicare reimbursements than others;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><content>this inequity in Medicare reimbursement jeopardizes the quality of Medicare services of rural beneficiaries and penalizes the most efficient and effective Medicare service providers;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10) </num><content>in some states, the result has been the absence of health care choices beyond traditional, fee-for-service medicine for Medicare beneficiaries, which in other counties and states plan providers may be significantly over-compensated, adding to Medicare’s fiscal instability; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="11">(11) </num><content>ending the practice of basing payments to risk contract plans on local fee-for-service medical costs will help correct these inequities, mitigate unnecessary cost in the program, and begin the serious, long-term restructuring of Medicare.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of the Senate</inline>.—</heading><chapeau>It is the sense of the Senate that the provisions of this resolution assume that the Finance Committee should strongly consider the following elements for Medicare reform—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>any Medicare reform package should include measures to address the inequity in Medicare reimbursement to risk contract plans;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Medicare should use a national update framework rather than local fee-for-service spending increases to determine the annual changes in risk plan payment rates;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>an adequate minimum payment rate should be provided for health plans participating in Medicare risk contract programs;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>the geographic variation in Medicare payment rates must be reduced over time to raise the lower payment areas closer to the average while taking into account actual differences in input costs that exist from region to regional;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Medicare managers in consultation with plan providers and patient advocates should pursue competitive bidding programs in communities where data indicate risk contract payments are substantially excessive and when plan choices would not diminish by such a bidding process; and</content></paragraph> <page identifier="/us/stat/111/2747">111 STAT. 2747</page> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>Medicare should phase in the use of risk adjusters which take account of health status so as to address overpayment to some plans.</content></paragraph></subsection></section> <section><num value="317">SEC. 317. </num><heading>SENSE OF THE SENATE REGARDING ASSISTANCE TO LITHUANIA AND LATVIA.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Findings.</inline>—</heading><chapeau>The Senate finds that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Lithuania and Latvia reestablished democracy and free market economies when they regained their freedom from the Soviet Union;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Lithuania and Latvia, which have made significant progress since regaining their freedom, are still struggling to recover from the devastation of 50 years of communist domination;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>the United States, which never recognized the illegal incorporation of Lithuania and Latvia into the Soviet Union, has provided assistance to strengthen democratic institutions and free market reforms in Lithuania and Latvia since 1991;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>the people of the United States enjoy close and friendly relations with the people of Lithuania and Latvia;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>the success of democracy and free market reform in Lithuania and Latvia is important to the security and economic progress of the United States; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>the United States as well as Lithuania and Latvia would benefit from the continuation of assistance which helps Lithuania and Latvia to implement commercial and trade law reform, sustain private sector development, and establish well-trained judiciaries.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of the Senate</inline>.—</heading><chapeau>It is the sense of the Senate that the provisions of this resolution assume that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>adequate assistance should be provided to Lithuania and Latvia in fiscal year 1998 to continue the progress they have made; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>assistance to Lithuania and Latvia should be continued beyond fiscal year 1998 as they continue to build democratic and free market institutions.</content></paragraph></subsection></section> <section><num value="318">SEC. 318. </num><heading>SENSE OF THE SENATE REGARDING A NATIONAL COMMISSION ON HIGHER EDUCATION.</heading> <content>It is the sense of the Senate that the provisions of this resolution assure that a national commission should be established to study and make specific recommendations regarding the extent to which increases in student financial aid, and the extent to which Federal, State, and local laws and regulations, contribute to increases in college and university tuition.</content></section> <section><num value="319">SEC. 319. </num><heading>SENSE OF THE SENATE ON LOCKBOX.</heading> <content>It is the Sense of the Senate that the provisions of this resolution assume that to ensure all savings from Medicare reform are used to keep the Medicare Program solvent, the Treasury Secretary should credit the Medicare Hospital Insurance Trust Fund (Part A) with government securities equal to any savings from Medicare Supplemental Medical Insurance (Part B) reforms enacted pursuant to the reconciliation instructions contained in this budget resolution.</content></section> <section><num value="320">SEC. 320. </num><heading>SENSE OF THE SENATE ON THE EARNED INCOME CREDIT.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Findings.</inline>—</heading><chapeau>The Senate finds that—</chapeau> <page identifier="/us/stat/111/2748">111 STAT. 2748</page> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>an April 1997 study by the Internal Revenue Service of Earned Income Credit (EIC) filers for tax year 1994 revealed that over $4,000,000,000 of the $17,000,000,000 spent on the EIC for that year was erroneously claimed and paid by the IRS, resulting in a fraud and error rate of 25.8 percent;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the IRS study further concluded that EIC reforms enacted by the One Hundred Fourth Congress will only lower the fraud error rate to 20.7 percent, meaning over $23,000,000,000 will be wasted over the next five years; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>the President’s recent proposals to combat EIC fraud and error contained within this budget resolution are estimated to save $124,000,000 in scoreable savings over the next five years and additional savings from deterrent effects.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of the Senate</inline>.—</heading><content>It is the sense of the Senate that the provisions of this resolution assume that the President should propose and Congress should enact additional programmatic changes sufficient to ensure that the primary purpose of the EIC to encourage work over welfare is achieved without wasting billions of taxpayer dollars on fraud and error.</content></subsection></section> <section><num value="321">SEC. 321. </num><heading>SENSE OF THE SENATE SUPPORTING LONG-TERM ENTITLEMENT REFORMS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Findings.</inline>—</heading><chapeau>The Senate finds that this resolution assumes that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>entitlement spending has risen dramatically over the last thirty-five years;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>in 1963, mandatory spending (i.e., entitlement spending and interest on the debt) made up 29.6 percent of the budget, this figure rose to 61.4 percent by 1993 and is expected to reach 70 percent shortly after the year 2000;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>this mandatory spending is crowding out spending for the traditional “discretionary” functions of Government like clean air and water, a strong national defense, parks and recreation, education, our transportation system, law enforcement, research and development and other infrastructure spending; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>taking significant steps sooner rather than later to reform entitlement spending will not only boost economic growth in this country, it will also prevent the need for drastic tax and spending decisions in the next century.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of the Senate</inline>.—</heading><content>It is the Sense of the Senate that the levels in this budget resolution assume that Congress and the President should work to enact structural reforms in entitlement spending in 1997 and beyond which sufficiently restrain the growth of mandatory spending in order to keep the budget in balance over the long term, extend the solvency of the Social Security and Medicare Trust Funds, avoid crowding out funding for basic Government functions and that every effort should be made to hold mandatory spending to no more than 70 percent of the budget.</content></subsection></section> <section><num value="322">SEC. 322. </num><heading>SENSE OF THE SENATE ON DISASTER ASSISTANCE FUNDING.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Findings.</inline>—</heading><chapeau>The Senate finds that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>emergency spending adds to the deficit and total spending;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the Budget Enforcement Act of 1990 exempts emergency spending from the discretionary spending caps and pay-go requirements;</content></paragraph> <page identifier="/us/stat/111/2749">111 STAT. 2749</page> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>the Budget Enforcement Act of 1990 expires in 1998 and needs to be extended;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>since the enactment of the Budget Enforcement Act, Congress and the President have approved an average of $5,800,000,000 per year in emergency spending; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>a natural disaster in any particular State is unpredictable, by the United States is likely to experience a natural disaster almost every year.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of the Senate</inline>.—</heading><chapeau>It is the sense of the Senate that the functional totals underlying this concurrent resolution on the budget assume that the Congress should consider in the extension of the Budget Enforcement Act and in appropriations Acts—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>provisions that budget for emergencies or that require emergency spending to be offset;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>provisions that provide flexibility to meet emergency funding requirements associated with natural disasters;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Congress and the President should consider appropriating at least $5,000,000,000 every year to provide for natural disaster relief; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Congress and the President should not designate any emergency spending for natural disaster relief until such amounts provided in regular appropriations are exhausted.</content></paragraph></subsection></section> <section><num value="323">SEC. 323. </num><heading>SENSE OF THE SENATE ON ENFORCEMENT OF BIPARTISAN BUDGET AGREEMENT.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Findings.</inline>—</heading><chapeau>The Senate finds that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><chapeau>the bipartisan budget agreement is contingent upon—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>favorable economic conditions for the next 5 years;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>accurate estimates of the fiscal impacts of assumptions in this resolution; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>enactment of legislation to reduce the deficit; and</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>if any of the conditions in paragraph (1) are not met, our ability to achieve a balanced budget by 2002 will be jeopardized.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of the Senate</inline>.—</heading><chapeau>It is the sense of the Senate that the functional totals and limits in this resolution assume that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>reconciliation legislation should include legislation to enforce the targets set forth in the bipartisan budget agreement and to ensure the balanced budget goal is met; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>such legislation shall—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>establish procedures to ensure the agreement is enforced in every year;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>require that the President’s annual budget and annual Congressional concurrent resolutions on the budget comply the agreement in every year;</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="C">(C) </num><content>consider provisions which provide that if the deficit is below or the surplus is above the deficits projected in the agreement in any year, such savings are locked in for deficit and debt reduction; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="D">(D) </num><content>consider provisions which budget for and control emergency spending in order to prevent the use of emergencies to evade the budget agreement.</content></subparagraph></paragraph></subsection></section> <section><num value="324">SEC. 324. </num><heading>SENSE OF THE SENATE REGARDING THE NATIONAL INSTITUTES OF HEALTH.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Findings.</inline>—</heading><chapeau>Congress finds that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>heart disease was the leading cause of death for both men and women in every year from 1970 to 1993;</content></paragraph> <page identifier="/us/stat/111/2750">111 STAT. 2750</page> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>mortality rates for individuals suffering from prostate cancer, skin cancer, and kidney cancer continue to rise;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>the mortality rate for African American women suffering from diabetes is 134 percent higher than the mortality rate of Caucasian women suffering from diabetes;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>asthma rates for children increased 58 percent from 1982 to 1992;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>nearly half of all American women between the ages of 65 and 75 reported having arthritis;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>AIDS is the leading cause of death for Americans between the ages of 24 and 44;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>the Institute of Medicine has described United States clinical research to be “in a state of crisis” and the National Academy of Sciences concluded in 1994 that “the present cohort of clinical investigators is not adequate”;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>biomedical research has been shown to be effective in saving lives and reducing health care expenditures;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><content>research sponsored by the National Institutes of Health has contributed significantly to the first overall reduction in cancer death rates since record keeping was instituted;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10) </num><content>research sponsored by the National Institutes of Health has resulted in the identification of genetic mutations for osteoporosis; Lou Gehrig's Disease, cystic fibrosis, and Huntington’s Disease; breast, skin and prostate cancer; and a variety of other illnesses;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="11">(11) </num><content>research sponsored by the National Institutes of Health has been key to the development of Magnetic Resonance Imaging (MRI) and Positron Emission Tomography (PET) scanning technologies;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="12">(12) </num><content>research sponsored by the National Institutes of Health has developed effective treatments for Acute Lymphoblastic Leukemia (ALL). Today, 80 percent of children diagnosed with Acute Lymphoblastic Leukemia are alive and free of the disease after 5 years; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="13">(13) </num><content>research sponsored by the National Institutes of Health contributed to the development of a new, cost-saving cure for peptic ulcers.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of the Senate</inline>.—</heading><chapeau>It is the sense of the Senate that this Resolution assumes that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>appropriations for the National Institutes of Health should be increased by 100 percent over the next 5 fiscal years; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>appropriations for the National Institutes of Health should be increased by $2,000,000,000 in fiscal year 1998 over the amount appropriated in fiscal year 1997.</content></paragraph></subsection></section> <section><num value="325">SEC. 325. </num><heading>SENSE OF THE SENATE REGARDING CERTAIN ELDERLY LEGAL ALIENS.</heading> <chapeau>It is the sense of the Senate that the provisions of this resolution assume that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the Committee on Finance will include in its recommendations to the Committee on the Budget of the Senate changes in laws within the jurisdiction of the Committee on Finance that allow certain elderly, legal immigrants who will cease to receive benefits under the supplemental security income program as a result of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104— <page identifier="/us/stat/111/2751">111 STAT. 2751</page>193; 110 Stat. 2105) to continue to receive benefits during a redetermination or reapplication period to determine if such aliens would qualify for such benefits on the basis of being disabled; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the Committee on Finance in developing these recommendations should offset the additional cost of this proposal out of other programs within the jurisdiction of the Committee on Finance.</content></paragraph></section> <section><num value="326">SEC. 326. </num><heading>SENSE OF THE SENATE REGARDING RETROACTIVE TAXES.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Findings.—</inline></heading><chapeau>The Senate finds that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in general, the practice of increasing a tax retroactively is fundamentally unfair to taxpayers; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>retroactive taxation is disruptive to families and small business in their ability to plan and budget.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of the Senate</inline>.—</heading><chapeau>It is the sense of the Senate that the levels in this budget resolution assume that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>except for closing tax loopholes, no revenues should be generated from any retroactively increased tax; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the Congress and the President should work together to ensure that any revenue generating proposal contained within reconciliation legislation pursuant to this concurrent resolution proposal, except those proposals closing tax loopholes, should take effect prospectively.</content></paragraph></subsection></section> <section><num value="327">SEC. 327. </num><heading>SENSE OF THE SENATE ON SOCIAL SECURITY AND BALANCING THE BUDGET.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Findings.</inline>—</heading><chapeau>The Senate finds that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>this budget resolution is projected to balance the unified budget of the United States in fiscal year 2002;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>section 13301 of the Budget Enforcement Act of 1990 requires that the deficit be computed without counting the annual surpluses of the Social Security Trust Funds; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>if the deficit were calculated according to the requirements of section 13301, this budget resolution would be projected to result in a deficit of $108,700,000,000 in fiscal year 2002.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of the Senate</inline>.—</heading><content>It is the sense of the Senate that the assumptions underlying this budget resolution assume that after balancing the unified Federal budget, the Congress should continue efforts to reduce the on-budget deficit, so that the Federal budget will be balanced without counting Social Security surpluses.</content></subsection></section> <section><num value="328">SEC. 328. </num><heading>SENSE OF THE SENATE SUPPORTING SUFFICIENT FUNDING FOR VETERANS PROGRAMS AND BENEFITS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Findings.</inline>—</heading><chapeau>The Senate finds that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>veterans and their families represent approximately 27 percent of the United States population;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>more than 20 million of our 26 million living veterans served during wartime, sacrificing their freedom so that we may have ours; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>veterans have earned the benefits promised to them.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of the Senate</inline>.—</heading><chapeau>It is the sense of the Senate that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the assumptions underlying this Budget Resolution assume that the 602(b) allocation to the Department of Veterans Affairs will be sufficient in fiscal year 1998 to fully fund all discretionary veterans programs, including medical care; and</content></paragraph> <page identifier="/us/stat/111/2752">111 STAT. 2752</page> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>funds collected from legislation to improve the Department of Veterans Affairs’ ability to collect and retain reimbursement from third-party payers ought to be used to supplement, not supplant, an adequate appropriation for medical care.</content></paragraph></subsection></section> <section><num value="329">SEC. 329. </num><heading>SENSE OF THE SENATE ON FAMILY VIOLENCE OPTION CIARIFYING AMENDMENT.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Findings.</inline>—</heading><chapeau>The Senate finds the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Domestic violence is the leading cause of physical injury to women. The Department of Justice estimates that over 1,000,000 violent crimes against women are committed by intimate partners annually.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Domestic violence dramatically affects the victim’s ability to participate in the workforce. A University of Minnesota survey reported that ¼ of battered women surveyed had lost a job partly because of being abused and that over ½ of these women had been harassed by their abuser at work.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Domestic violence is often intensified as women seek to gain economic independence through attending school or training programs. Batterers have been reported to prevent women from attending these programs or sabotage their efforts at self-improvement.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Nationwide surveys of service providers prepared by the Taylor Institute of Chicago, Illinois, document, for the first time, the interrelationship between domestic violence and welfare by showing that from 34 percent to 65 percent of AFDC recipients are current or past victims of domestic violence.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Over ½ of the women surveyed stayed with their batterers because they lacked the resources to support themselves and their children. The surveys also found that the availability of economic support is a critical factor in poor women’s ability to leave abusive situations that threaten them and their children.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>The restructuring of the welfare programs may impact the availability of the economic support and the safety net necessary to enable poor women to flee abuse without risking homelessness and starvation for their families.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>In recognition of this finding, the Committee on the Budget of the Senate in considering the 1997 Resolution on the budget of the United States unanimously adopted a sense of the Congress amendment concerning domestic violence and Federal assistance. Subsequently, Congress adopted the family violence option amendment as part of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>The family violence option gives States the flexibility to grant temporary waivers from time limits and work requirements for domestic violence victims who would suffer extreme hardship from the application of these provisions. These waivers were not intended to be included as part of the permanent 20 percent hardship exemption.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><content>The Department of Health and Human Services has been slow to issue regulations regarding this provision. As a result, States are hesitant to fully implement the family violence option fearing that it will interfere with the 20 percent hardship exemption.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10) </num><content>Currently 15 States have opted to include the family violence option in their welfare plans, and 13 other States <page identifier="/us/stat/111/2753">111 STAT. 2753</page>have included some type of domestic violence provisions in their plans.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of Senate.</inline>—</heading><chapeau>It is the sense of the Senate that the provisions of this resolution assume that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>States should not be subject to any numerical limits in granting domestic violence good cause waivers under section 402(a)(7)(A)(iii) of the Social Security Act (42 U.S.C. 602(a)(7)(A)(iii)) to individuals receiving assistance, for all requirements where compliance with such requirements would make it more difficult for individuals receiving assistance to escape domestic violence; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>any individual who is granted a domestic violence good cause waiver by a State shall not be included in the States’ 20 percent hardship exemption under section 408(a)(7) of the Social Security Act (42 U.S.C. 608(a)(7)).</content></paragraph></subsection></section> <section><num value="330">SEC. 330. </num><heading>SENSE OF THE SENATE REGARDING ASSISTANCE TO AMTRAK.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Findings.</inline>—</heading><chapeau>The Senate finds that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Amtrak is in a financial crisis, with growing and substantial debt obligations approaching $2,000,000,000;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Amtrak has not been authorized since 1994;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>the Senate Committee on Commerce, Science, and Transportation favorably reported legislation to reform Amtrak during the last two Congresses, but no legislation was enacted;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>the Finance Committee favorably reported legislation in the last Congress that created a dedicated trust fund for Amtrak, but no legislation was enacted;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>in 1997 Amtrak testified before the Congress that it cannot survive beyond 1998 without comprehensive legislative reforms and a dedicated source of capital funding; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>Congress is obligated to invest Federal tax dollars responsibly and to reduce waste and inefficiency in Federal programs, including Amtrak.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of the Senate</inline>.—</heading><chapeau>It is the sense of the Senate that the provisions of this resolution assume that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>legislative reform is urgently needed to address Amtrak’s financial and operational problems;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Congress should allocate additional Federal dollars to Amtrak in conjunction with reforms requested by Amtrak to address its precarious financial situation; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>the distribution of money from any new fund to finance an intercity rail passenger fund should be implemented in conjunction with legislation to reauthorize and reform the National Rail Passenger Corporation.</content></paragraph></subsection></section> <section><num value="331">SEC. 331. </num><heading>SENSE OF THE SENATE REGARDING THE PROTECTION OF CHILDREN’S HEALTH.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Findings.</inline>—</heading><chapeau>The Senate makes the following findings:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Today’s children and the next generation of children are the prime beneficiaries of a balanced Federal budget. Without a balanced budget, today’s children will bear the increasing burden of the Federal debt. Continued deficit spending would doom future generations to slower economic growth, higher taxes, and lower living standards.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>The health of children is essential to the future economic and social well-being of the Nation.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The Medicaid Program provides health coverage for over 17,000,000 children, or 1 out of every 4 children.</content></paragraph> <page identifier="/us/stat/111/2754">111 STAT. 2754</page> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>While children represent ½ of all individuals eligible for Medicaid, children account for less than 25 percent of expenditures under the Medicaid Program.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Disproportionate share hospital (DSH) funding under the Medicaid Program has allowed States to provide health care services to thousands of uninsured pregnant women and children. DSH funding under the Medicaid Program is critical for these populations.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of the Senate.</inline>—</heading><content>It is the sense of the Senate that the provisions of this resolution assume that the health care needs of low-income pregnant women and children should be a top priority. Careful study must be made of the impact of Medicaid disproportionate share hospital (DSH) reform proposals on children’s health and on vital sources of care, including children’s hospitals. Any restrictions on DSH funding under the Medicaid Program should not harm State Medicaid coverage of children and pregnant women.</content></subsection></section> <section><num value="332">SEC. 332. </num><heading>SENSE OF THE SENATE ON DEPOSITING ALL FEDERAL GASOLINE TAXES INTO THE HIGHWAY TRUST FUND.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Findings.</inline>—</heading><chapeau>The Senate makes the following findings:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Since 1956, Federal gasoline excise tax revenues have generally been deposited in the Highway Trust Fund and reserved for transportation uses.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>In 1993, Congress and the President enacted the first permanent increase in the Federal gasoline excise tax which was dedicated to general revenues, not the Highway Trust Fund.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Over the next five years, approximately $7,000,000,000 per year in Federal gasoline excise tax revenues will be deposited in the general fund of the Treasury, rather than the Highway Trust Fund.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of the Senate</inline>.—</heading><content>It is the sense of the Senate that the provisions in this resolution assume that Congress should in the extension of the Budget Enforcement Act, ISTEA reauthorization, appropriations Acts, and in any revenue bills, consider dedicating all revenues from Federal gasoline excise taxes, including amounts dedicated to general revenues in 1993, to the Highway Trust Fund so that such taxes may be used for the purpose to which they have historically been dedicated, promoting transportation infrastructure and building roads.</content></subsection></section> <section><num value="333">SEC. 333. </num><heading>SENSE OF THE SENATE ON EARLY CHILDHOOD EDUCATION.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Findings.</inline>—</heading><chapeau>The Senate finds the following:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Scientific research on the development of the brain has confirmed that the early childhood years, particularly from birth to the age of 3, are critical to children’s development.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Studies repeatedly have shown that good quality child care helps children develop well, enter school ready to succeed, improve their skills, cognitive abilities and socioemotional development, improve classroom learning behavior, and stay safe while their parents work. Further, quality early childhood programs can positively affect children’s long-term success in school achievement, higher earnings as adults, decrease reliance on public assistance and decrease involvement with the criminal justice system.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>The first of the National Education Goals, endorsed by the Nation’s governors, passed by Congress and signed into law by President Bush, stated that by the year 2000, every <page identifier="/us/stat/111/2755">111 STAT. 2755</page>child should enter school ready to learn and that access to a high quality early childhood education program was integral to meeting this goal.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>According to data compiled by the RAND Corporation, while 90 percent of human brain growth occurs by the age of 3, public spending on children in that age range equals only 8 percent of spending on all children. A vast majority of public spending on children occurs after the brain has gone through its most dramatic changes, often to correct problems that should have been addressed during early childhood development.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>According to the Department of Education, of $29,400,000,000 in current estimated education expenditures, only $1,500,000,000, or 5 percent, is spent on children from birth to age 5. The vast majority is spent on children over age 5.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>A new commitment to quality child care and early childhood education is a necessary response to the fact that children from birth to the age of 3 are spending more time in care away from their homes. Almost 60 percent of women in the workforce have children under the age of 3 requiring care.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>Many States and communities are currently experimenting with innovative programs directed at early childhood care and education in a variety of care settings, including the home. States and local communities are best able to deliver efficient, cost-effective services, but while such programs are long on demand, they are short on resources. Additional Federal resources should not create new bureaucracy, but build on successful locally driven efforts.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of the Senate</inline>.—</heading><content>It is the sense of the Senate that the budget totals and levels in this resolution assume that funds ought to be directed toward increasing the supply of quality child care, early childhood education, and teacher and parent training for children from birth through age 3.</content></subsection></section> <section><num value="334">SEC. 334. </num><heading>SENSE OF THE SENATE CONCERNING HIGHWAY TRUST FUND.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Findings.</inline>—</heading><chapeau>The Senate finds that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>there is no direct linkage between the fuel taxes deposited in the Highway Trust Fund and the transportation spending from the Highway Trust Fund;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><chapeau>the Federal budget process has severed this linkage by dividing revenues and spending into separate budget categories with—</chapeau> <subparagraph class="indent2 fontsize10"><num value="A">(A) </num><content>fuel taxes deposited in the Highway Trust Fund as revenues; and</content></subparagraph> <subparagraph class="indent2 fontsize10"><num value="B">(B) </num><content>most spending from the Highway Trust Fund in the discretionary category;</content></subparagraph></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>each budget category referred to in paragraph (2) has its own rules and procedures; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>under budget rules in effect prior to the date of adoption of this resolution, an increase in fuel taxes permits increased spending to be included in the budget, but not for increased Highway Trust Fund spending.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of the Senate</inline>.—</heading><chapeau>It is the sense of the Senate that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>in this session of Congress, Congress should, within a unified budget, consider changing the Federal budget process <page identifier="/us/stat/111/2756">111 STAT. 2756</page>to establish a linkage between the fuel taxes deposited in the Highway Trust Fund, including any fuel tax increases that may be enacted into law after the date of adoption of this resolution, and the spending from the Highway Trust Fund; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>changes to the budgetary treatment of the Highway Trust Fund should not result in total program levels for highways or mass transit that is inconsistent with those assumed under the resolution.</content></paragraph></subsection></section> <section><num value="335">SEC. 335. </num><heading>SENSE OF THE SENATE CONCERNING TAX INCENTIVES FOR THE COST OF POST-SECONDARY EDUCATION.</heading> <content>It is the sense of the Senate that the provisions of this resolution assume that any revenue reconciliation bill should include tax incentives for the cost of post-secondary education, including expenses of workforce education and training at vocational schools and community colleges.</content></section> <section><num value="336">SEC. 336. </num><heading>SENSE OF THE SENATE ON ADDITIONAL TAX CUTS.</heading> <content>It is the sense of the Senate that nothing in this resolution shall be construed as prohibiting Congress in future years from providing additional tax relief if the cost of such tax relief is offset by reductions in spending or increases in revenue from alternative sources.</content></section> <section><num value="337">SEC. 337. </num><heading>SENSE OF THE SENATE REGARDING TRUTH IN BUDGETING AND SPECTRUM AUCTIONS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Findings.—</inline></heading><chapeau>The Senate finds that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the electromagnetic spectrum is the property of the American people and is managed on their behalf by the Federal Government;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>the spectrum is a highly valuable and limited natural resource;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>the auctioning of spectrum has raised billions of dollars for the Treasury;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>the estimates made regarding the value of spectrum in the past have proven unreliable, having previously understated and now overstating its worth; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>because estimates of spectrum value depend on a number of technological, economic, market forces, and other variables that cannot be predicted or completely controlled, it is not possible to reliably estimate the value of a given segment of spectrum.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of the Senate</inline>.—</heading><content>It is the sense of the Senate that as auctions occur as assumed by this resolution, the Congress shall take such steps as necessary to reconcile the difference between actual revenues raised and estimates made and shall reduce spending and make other appropriate adjustments accordingly if such auctions raise less revenue than projected.</content></subsection></section> <section><num value="338">SEC. 338. </num><heading>SENSE OF THE SENATE ON HIGHWAY DEMONSTRATION PROJECTS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Findings.</inline>—</heading><chapeau>The Senate finds that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>10 demonstration projects totaling $362,000,000 were listed for special line-item funding in the Surface Transportation Assistance Act of 1982;</content></paragraph> <page identifier="/us/stat/111/2757">111 STAT. 2757</page> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>152 demonstration projects totaling $1,400,000,000 were named in the Surface Transportation and Uniform Relocation Assistance Act of 1987;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>64 percent of the funding for the 152 projects had not been obligated after 5 years and State transportation officials determined the projects added little, if any, to meeting their transportation infrastructure priorities;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>538 location specific projects totaling $6,230,000,000 were included in the Intermodal Surface Transportation Efficiency Act of 1991;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>more than $3,300,000,000 of the funds authorized for the 538 location-specific projects remained unobligated as of January 31, 1997;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>the General Accounting Office determined that 31 States plus the District of Columbia and Puerto Rico would have received more funding if the Intermodal Surface Transportation Efficiency Act location-specific project funds were redistributed as Federal-aid highway program apportionments;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>this type of project funding diverts Highway Trust Fund money away from State transportation priorities established under the formula allocation process and under the Intermodal Surface Transportation and Efficiency Act of 1991;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>on June 20, 1995, by a vote of 75 yeas to 21 nays, the Senate voted to prohibit the use of Federal Highway Trust Fund money for future demonstration projects;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="9">(9) </num><content>the Intermodal Surface Transportation and Efficiency Act of 1991 expires at the end of fiscal year 1997; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="10">(10) </num><content>hundreds of funding requests for specific transportation projects in Congressional Districts have been submitted in the House of Representatives.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of the Senate</inline>.—</heading><chapeau>It is the sense of the Senate that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>notwithstanding different views on existing Highway Trust Fund distribution formulas, funding for demonstration projects or other similarly titled projects diverts Highway Trust Fund money away from State priorities and deprives States of the ability to adequately address their transportation needs;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>States are best able to determine the priorities for allocating Federal-Aid-To-Highway monies within their jurisdiction;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Congress should not divert limited Highway Trust Fund resources away from State transportation priorities by authorizing new highway projects; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Congress should not authorize any new demonstration projects or other similarly-titled projects.</content></paragraph></subsection></section> <section><num value="339">SEC. 339. </num><heading>SENSE OF THE SENATE REGARDING THE USE OF BUDGET SAVINGS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Findings.</inline>—</heading><chapeau>The Senate makes the following findings:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Poverty rates among the elderly are at the lowest level since our Nation began to keep poverty statistics, due in large part to the Social Security system and the Medicare Program.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Twenty-two percent of every dollar spent by the Federal Government goes to the Social Security system.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Eleven percent of every dollar spent by the Federal Government goes to the Medicare Program.</content></paragraph> <page identifier="/us/stat/111/2758">111 STAT. 2758</page> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Currently, spending on the elderly accounts for ⅓ of the Federal budget and more than ½ of all domestic spending other than interest on the national debt.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>Future generations of Americans must be guaranteed the same value from the Social Security system as past covered recipients.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>According to the 1997 report of the Managing Trustee for the Social Security Trust Funds, the accumulated balance in the Federal Old-Age and Survivors Insurance Trust Fund is estimated to fall to zero by 2029, and the estimated payroll tax at that time will be sufficient to cover only 75 percent of the benefits owed to retirees at that time.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="7">(7) </num><content>The accumulated balance in the Federal Hospital Insurance Trust Fund is estimated to fall to zero by 2001.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="8">(8) </num><content>While the Federal budget deficit has shrunk for the fourth straight year to $67,000,000,000 in 1997, measures need to be taken to ensure that trend continues.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of the Senate</inline>.—</heading><chapeau>It is the sense of the Senate that the provisions of this resolution assume that budget savings in the mandatory spending area should be used—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>to protect and enhance the retirement security of the American people by ensuring the long-term future of the Social Security system;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>to protect and enhance the health care security of senior citizens by ensuring the long-term future of the Medicare Program under title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.); and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>to restore and maintain Federal budget discipline to ensure that the level of private investment necessary for long-term economic growth and prosperity is available.</content></paragraph></subsection></section> <section><num value="340">SEC. 340. </num><heading>SENSE OF THE SENATE REGARDING THE VALUE OF THE SOCIAL SECURITY SYSTEM FOR FUTURE RETIREES.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Findings.</inline>—</heading><chapeau>The Senate makes the following findings:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>The Social Security system has allowed a generation of Americans to retire with dignity. Today, 13 percent of the population is 65 or older and by 2030, 20 percent of the population will be 65 or older. More than ½ of the elderly do not receive private pensions and more than ⅓ have no income from assets.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>For 60 percent of all senior citizens, Social Security benefits provide almost 80 percent of their retirement income. For 80 percent of all senior citizens, Social Security benefits provide over 50 percent of their retirement income.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Poverty rates among the elderly are at the lowest level since the United States began to keep poverty statistics, due in large part to the Social Security system.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Seventy-eight percent of Americans pay more in payroll taxes than they do in income taxes.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>According to the 1997 report of the Managing Trustee for the Social Security Trust Funds, the accumulated balance in the Federal Old-Age and Survivors Insurance Trust Fund is estimated to fall to zero by 2029, and the estimated payroll tax at that time will be sufficient to cover only 75 percent of the benefits owed to retirees at that time.</content></paragraph> <page identifier="/us/stat/111/2759">111 STAT. 2759</page> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>The average American retiring in the year 2015 will pay $250,000 in payroll taxes over the course of his or her working career.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of the Senate</inline>.—</heading><content>It is the sense of the Senate that the provisions of this resolution assume that no change in the Social Security system should be made that would reduce the value of the Social Security system for future generations of retirees.</content></subsection></section> <section><num value="341">SEC. 341. </num><heading>SENSE OF THE SENATE ON ECONOMIC GROWTH DIVIDEND PROTECTION.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Findings.</inline>—</heading><chapeau>The Senate finds that with respect to the revenue levels established under this resolution—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>according to the President’s own economists, the tax burden on Americans is the highest ever at 31.7 percent;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>according to the National Taxpayers Union, the average American family now pays almost 40 percent of their income in State, local, and Federal taxes;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>between 1978 and 1985, while the top marginal rate on capital gains was cut almost in half—from 35 to 20 percent—total annual Federal receipts from the tax almost tripled from $9,100,000,000 annually to $26,500,000,000 annually;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>conversely, when Congress raised the rate in 1986, revenues actually fell well below what was anticipated;</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>economists across-the-board predict that cutting the capital gains rate will result in a revenue windfall for the Treasury; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="6">(6) </num><content>while a USA Today poll from this March found 70 percent of the American people believe that they need a tax cut, under this resolution Federal spending will grow 17 percent over five years while the net tax cuts are less than 1 percent of the total tax burden.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of Senate</inline>.—</heading><content>It is the sense of the Senate that with respect to the revenue levels established under this resolution, to the extent that actual revenues exceed the revenues projected under this resolution due to higher than anticipated economic growth, that revenue windfall should be reserved exclusively for additional tax cuts and/or deficit reduction.</content></subsection></section> <section><num value="342">SEC. 342. </num><heading>SENSE OF THE SENATE SUPPORTING FEDERAL, STATE, AND LOCAL LAW ENFORCEMENT OFFICERS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num><heading><inline class="smallCaps">Findings.</inline>—</heading><chapeau>The Senate makes the following findings:</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>Our Federal, State, and local law enforcement officers provide essential services that preserve and protect our freedoms and security, and with the support of Federal assistance, State and local law enforcement officers have succeeded in reducing the national scourge of violent crime, as illustrated by a murder rate in 1996 that is projected to be the lowest since 1971 and a violent crime total in 1996 that is the lowest since 1990.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>Through a comprehensive effort to attack violence against women mounted by State and local law enforcement, and dedicated volunteers and professionals who provide victim services, shelter, counseling, and advocacy to battered women and their children, important strides have been made against the national scourge of violence against women, illustrated by the decline in the murder rate for wives, ex-wives, and girlfriends at the hands of their “intimates” fell to a 19-year low in 1995.</content></paragraph> <page identifier="/us/stat/111/2760">111 STAT. 2760</page> <paragraph class="indent1 fontsize10"><num value="3">(3) </num><content>Federal, State, and local law enforcement efforts need continued financial commitment from the Federal Government for funding and financial assistance to continue their efforts to combat violent crime and violence against women.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="4">(4) </num><content>Federal, State and local law enforcement also face other challenges which require continued financial commitment from the Federal Government, including regaining control over the Southwest Border, where drug trafficking and illegal immigration continue to threaten public safety and menace residents on the border and throughout the Nation.</content></paragraph> <paragraph class="indent1 fontsize10"><num value="5">(5) </num><content>The Violent Crime Reduction Trust Fund established in section 310001 the Violent Crime Control and Law Enforcement Act of 1994 (42 U.S.C. 14211) fully funds the Violent Crime Control and Law Enforcement Act of 1994, including the Violence Against Women Act, without adding to the Federal budget deficit.</content></paragraph></subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><heading><inline class="smallCaps">Sense of the Senate</inline>.—</heading><chapeau>It is the sense of the Senate that the provisions and the functional totals underlying this resolution assume that—</chapeau> <paragraph class="indent1 fontsize10"><num value="1">(1) </num><content>the Federal Government’s commitment to fund Federal law enforcement programs and programs to assist State and local efforts to combat violent crime, including violence against women, will be maintained; and</content></paragraph> <paragraph class="indent1 fontsize10"><num value="2">(2) </num><content>funding for the Violent Crime Reduction program will continue as authorized by the Violent Crime Control and Law Enforcement Act of 1994.</content></paragraph></subsection></section> <section><num value="343">SEC. 343. </num><heading>SENSE OF THE SENATE REGARDING PARENTAL INVOLVEMENT IN PREVENTION OF DRUG USE BY CHILDREN.</heading> <content>It is the sense of the Senate that the provisions of this resolution assume that, from resources available in this budget resolution, a portion should be set aside for a national grassroots volunteer effort to encourage parental education and involvement in youth drug prevention and to create a drug-intolerant culture for our children.</content></section> </subtitle> Agreed to June 5, 1997.
H. Con. Res. 108: ADJOURNMENT—HOUSE OF REPRESENTATIVES AND SENATE Providing for an adjournment or recess of the two Houses. House Concurrent Resolution108 June 26, 1997
ADJOURNMENT—HOUSE OF REPRESENTATIVES AND SENATE
Providing for an adjournment or recess of the two Houses.

June 26, 1997

[H. Con. Res. 108]

 Resolved by the House of Representatives (the Senate concurring),
That when the House adjourns on the legislative day of Thursday, June 26, 1997, it stand adjourned until 12:30 p.m. on Tuesday, July 8, 1997, or until noon on the second day after Members are notified to reassemble pursuant to section 2 of this concurrent resolution, whichever occurs first; and that when the Senate recesses or adjourns at the close of business on Thursday, June 26, 1997, Friday, June 27, 1997, Saturday, June 28, 1997, or Sunday, June 29, 1997, pursuant to a motion made by the Majority Leader, or his designee, in accordance with this concurrent resolution, it stand recessed or adjourned until noon on Monday, July 7, 1997, or such time on that day as may be specified of the 111 STAT. 2761Majority Leader or his designee in the motion to recess or adjourn, or until noon on the second day after Members are notified to reassemble pursuant to section 2 of this concurrent resolution, whichever occurs first.
Sec. 2. The Speaker of the House and the Majority Leader of the Senate, acting jointly after consultation with the Minority Leader of the House and the Minority Leader of the Senate, shall notify the Members of the House and the Senate, respectively, to reassemble whenever, in their opinion, the public interest shall warrant it.
Agreed to June 26, 1997.
H. Con. Res. 123: WILLIAM J. BRENNAN MEMORIAL SERVICES-CATAFALQUE AUTHORIZATION Providing for the use of the catafalque situated in the crypt beneath the rotunda of the Capitol in connection with memorial services to be conducted in the Supreme Court Building for the late honorable William J. Brennan, former Associate Justice of the Supreme Court of the United States. House Concurrent Resolution123 July 28, 1997
WILLIAM J. BRENNAN MEMORIAL SERVICES-CATAFALQUE AUTHORIZATION
Providing for the use of the catafalque situated in the crypt beneath the rotunda of the Capitol in connection with memorial services to be conducted in the Supreme Court Building for the late honorable William J. Brennan, former Associate Justice of the Supreme Court of the United States.

July 28, 1997

[H. Con. Res. 123]

 Resolved by the House of Representatives (the Senate concurring),
That the Architect of the Capitol is authorized and directed to transfer to the custody of the Chief Justice of the United States the catafalque which is presently situated in the crypt beneath the rotunda of the Capitol so that such catafalque may be used in the Supreme Court Building in connection with services to be conducted there for the late honorable William J. Brennan, former Associate Justice of the Supreme Court of the United States.
Agreed to July 28, 1997.
H. Con. Res. 98: SAFE KIDS BUCKLE UP CAR SEAT SAFETY CHECK—CAPITOL GROUNDS AUTHORIZATION Authorizing the use of the Capitol Grounds for the SAFE KIDS Buckle Up Car Seat Safety Check. House Concurrent Resolution98 July 30, 1997
SAFE KIDS BUCKLE UP CAR SEAT SAFETY CHECK—CAPITOL GROUNDS AUTHORIZATION
Authorizing the use of the Capitol Grounds for the SAFE KIDS Buckle Up Car Seat Safety Check.

July 30, 1997

[H. Con. Res. 98]

 Resolved by the House of Representatives (the Senate concurring),
SECTION 1. USE OF CAPITOL GROUNDS. The National SAFE KIDS Campaign (in this resolution referred to as the “sponsor”) shall be permitted to sponsor a public event, the SAFE KIDS Buckle Up Car Seat Safety Check, on the Capitol Grounds on August 27 and 28, 1997, or on such other dates as the Speaker of the House of Representatives and the President pro tempore of the Senate may jointly designate.
SEC. 2. TERMS AND CONDITIONS. (a) In General.—The event authorized to be conducted under section 1 shall be free of admission charge to the public and arranged not to interfere with the needs of Congress, under conditions to be prescribed by the Architect of the Capitol and the Capitol Police Board. 111 STAT. 2762 (b) Expenses and Liabilities .—The sponsor shall assume full responsibility for all expenses and liabilities incident to all activities associated with the event.
SEC. 3. EVENT PREPARATIONS. (a) Structures and Equipment.—Subject to the approval of the Architect of the Capitol, the sponsor may erect upon the Capitol Grounds such stage, sound amplification devices, and other related structures and equipment, and may take such other actions, as may be required for the event authorized to be conducted under section 1. (b) Additional Arrangements.—The Architect of the Capitol and the Capitol Police Board may make such additional arrangements as may be required to carry out the event.
Agreed to July 30, 1997.
H. Con. Res. 136: ADJOURNMENT—HOUSE OF REPRESENTATIVES AND SENATE Providing Tor an adjournment of the two Houses. House Concurrent Resolution136 July 31, 1997
ADJOURNMENT—HOUSE OF REPRESENTATIVES AND SENATE
Providing Tor an adjournment of the two Houses.

July 31, 1997

[H. Con. Res. 136]

 Resolved by the House of Representatives (the Senate concurring),
That, in consonance with section 132(a) of the Legislative Reorganization Act of 1946, when the House adjourns on the legislative day of Friday, August 1, 1997 or Saturday, August 2, 1997, pursuant to a motion made by the Majority Leader or his designee, it stand adjourned until noon on Wednesday, September 3, 1997, or until noon on the second day after Members are notified to reassemble pursuant to section 2 of this concurrent resolution, whichever occurs first; and that when the Senate recesses or adjourns at the close of business on Thursday, July 31, 1997, Friday, August 1, 1997, or Saturday, August 2, 1997, pursuant to a motion made by the Majority Leader or his designee in accordance with this concurrent resolution, it stand recessed or adjourned until noon on Tuesday, September 2, 1997, or until such time on that day as may be specified by the Majority Leader or his designee in the motion to recess or adjourn, or until noon on the second day after Members are notified to reassemble pursuant to section 2 of this concurrent resolution, whichever occurs first.
Sec. 2. The Speaker of the House and the Majority Leader of the Senate, acting jointly after consultation with the Minority Leader of the House and the Minority Leader of the Senate, shall notify the Members of the House and Senate, respectively, to reassemble whenever, in their opinion, the public interest shall warrant it.
Agreed to July 31, 1997.
H. Con. Res. 138: ENROLLMENT CORRECTIONS—H.R. 2014 To correct technical errors in the enrollment of the bill H.R. 2014. House Concurrent Resolution138 July 31, 1997
111 STAT. 2763 ENROLLMENT CORRECTIONS—H.R. 2014
To correct technical errors in the enrollment of the bill H.R. 2014.

July 31, 1997

[H. Con. Res. 138]

 Resolved by the House of Representatives (the Senate concurring),
That, in the enrollment of the bill (H.R. 2014), to provide for reconciliation pursuant to subsections (b)(2) and (d) of section 105 of the concurrent resolution on the budget for fiscal year 1998, the Clerk of the House of Representatives shall make the following corrections: (1) In the amendment proposed to be added by section 1085(c), strike “section 407(d)” and insert “paragraph (4) or (7) of section 407(d)”. (2) Strike subparagraph (B) of section 1031(e)(2) and insert the following: “(B) Treatment of amounts paid for tickets purchased before october 1, 1997.—The amendments made by subsection (c) shall not apply to amounts paid before October 1, 1997; except that— “(i) the amendment made to section 4261(c) of the Internal Revenue Code of 1986 shall apply to amounts paid more than 7 days after the date or the enactment of this Act for transportation beginning on or after October 1, 1997, and “(ii) the amendment made to section 4263(c) of such Code shall apply to the extent related to taxes imposed under the amendment made to such section 4261(c) on the amounts described in clause (i).”.
Agreed to July 31, 1997.
S. Con. Res. 43: HIGH FRUCTOSE CORN SYRUP—MEXICO ANTIDUMPING INVESTIGATION Senate Concurrent Resolution43 July 31, 1997
HIGH FRUCTOSE CORN SYRUP—MEXICO ANTIDUMPING INVESTIGATION

July 31, 1997

[S. Con. Res. 43]

 Whereas the North American Free Trade Agreement (in this resolution, referred to as “the NAFTA”) was intended to reduce trade barriers between Canada, Mexico and the United States; Whereas the NAFTA represented an opportunity for corn farmers and refiners to increase exports of highly competitive United States corn and com products; Whereas corn is the number one United States cash crop with a value of $25,000,000,000; Whereas United States corn refiners are highly efficient, provide over 10,000 nonfarm jobs, and add over $2,000,000 of value to the United States corn crop; Whereas the Government of Mexico has initiated an antidumping investigation into imports of high fructose com syrup from the United States which may violate the antidumping standards of the World Trade Organization; Whereas on June 25, 1997, the Government of Mexico published a Preliminary Determination imposing very high antidumping duties on imports of United States high fructose corn syrup; Whereas there has been concern that Mexico’s initiation of the antidumping investigation was motivated by political pressure 111 STAT. 2764from the Mexican sugar industry rather than the merits of Mexico’s antidumping law: Now, therefore, be it Resolved by the Senate (the House of Representatives concurring),
That it is the sense of Congress that— (1) the Government of Mexico should review carefully whether it properly initiated this antidumping investigation in conformity with the standards set forth in the World Trade Organization Agreement on Antidumping, and should terminate this investigation immediately; (2) if the United States Trade Representative considers that Mexico initiated this antidumping investigation in violation of World Trade Organization standards, and if the Government of Mexico does not terminate the antidumping investigation, then the United States Trade Representative should immediately undertake appropriate measures, including actions pursuant to the dispute settlement provisions of the World Trade Organization.
Agreed to July 31, 1997.
H. Con. Res. 134: CEREMONY FOR PATRIACH BARTHOLOMEW—CAPITOL ROTUNDA AUTHORIZATION Authorizing the use of the rotunda of the Capitol to allow Members of Congress to greet and receive His All Holiness Patriarch Bartholomew. House Concurrent Resolution134 Sept. 17, 1997
CEREMONY FOR PATRIACH BARTHOLOMEW—CAPITOL ROTUNDA AUTHORIZATION
Authorizing the use of the rotunda of the Capitol to allow Members of Congress to greet and receive His All Holiness Patriarch Bartholomew.

Sept. 17, 1997

[H. Con. Res. 134]

 Resolved by the House of Representatives (the Senate concurring),
That the rotunda of the Capitol is authorized to be used on October 21, 1997, from 11:00 a.m. to 12:00 noon, for a ceremony to allow Members of Congress to greet and receive His All Holiness Patriarch Bartholomew, the 270th Ecumenical Patriarch of Constantinople. Physical preparations for the conduct of the ceremony shall be carried out in accordance with such conditions as may be prescribed by the Architect of the Capitol.
Agreed to September 17, 1997.
H. Con. Res. 169: ADJOURNMENT—HOUSE OF REPRESENTATIVES AND SENATE Providing for an adjournment of the two Houses. House Concurrent Resolution169 Oct. 9, 1997
ADJOURNMENT—HOUSE OF REPRESENTATIVES AND SENATE
Providing for an adjournment of the two Houses.

Oct. 9, 1997

[H. Con. Res. 169]

 Resolved by the House of Representatives (the Senate concurring),
That when the House adjourns on the legislative day of Thursday, October 9, 1997, it stand adjourned until 10:30 a.m. on Tuesday, October 21, 1997, or until noon on the second day after Members are notified to reassemble pursuant to section 2 of this concurrent resolution, whichever occurs first; and that when the Senate recesses or adjourns at the close of business on Thursday, October 9, 1997, Friday, October 10, 1997, or Saturday, October 11, 1997, pursuant to a motion made by the Majority Leader, or his designee, in accordance with this concurrent resolution, it stand recessed or adjourned until noon on Monday, October 20, 111 STAT. 27651997, or such time on that day as may be specified by the Majority Leader or his designee in the motion to recess or adjourn, or until noon on the second day after Members are notified to reassemble pursuant to section 2 of this concurrent resolution, whichever occurs first.
Sec. 2. The Speaker of the House and the Majority Leader of the Senate, acting jointly after consultation with the Minority Leader of the House and the Minority Leader of the Senate, shall notify the Members of the House and Senate, respectively, to reassemble whenever, in their opinion, the public interest shall warrant it.
Agreed to October 9, 1997.
H. Con. Res. 8: CORAL REEF ECOSYSTEMS—HEALTH AND STABILITY Recognizing the significance of maintaining the health and stability of coral reef ecosystems. House Concurrent Resolution8 Oct. 21, 1997
CORAL REEF ECOSYSTEMS—HEALTH AND STABILITY
Recognizing the significance of maintaining the health and stability of coral reef ecosystems.

Oct. 21, 1997

[H. Con. Res. 8]

 Whereas coral reefs are among the world’s most biologically diverse and productive marine habitats, and are often described as the tropical rain forest of the oceans; Whereas healthy coral reefs provide the basis for subsistence, commercial fisheries, and coastal and marine tourism and are of vital economic importance to coastal States and territories of the United States including Florida, Hawaii, Georgia, Texas. Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands; Whereas healthy coral reefs function as natural, regenerating coastal barriers, protecting shorelines and coastal areas from high waves, storm surges, and accompanying losses of human life and property; Whereas the scientific community has long established that coral reefs are subject to a wide range of natural and anthropogenic threats; Whereas a wide variety of destructive fishing practices, including the use of cyanide, other poisons, surfactants, and explosives, are contributing to the global decline of coral reef ecosystems; Whereas the United States has taken measures to protect national coral reef resources through the designation and management of several marine protected areas, containing reefs of the Flower Garden Banks in the Gulf of Mexico, the Florida Keys in south Florida, and offshore Hawaii, Puerto Rico, the Virgin Islands, and American Samoa; Whereas the United States, acting through its agencies, has established itself as a global leader in coral reef stewardship by launching the International Coral Reef Initiative and by maintaining professional networks for the purposes of sharing knowledge and information on coral reefs, furnishing near real-time data collected at coral reef sites, providing a repository for historical data relating to coral reefs, and making substantial contributions to the general fund of coral reef knowledge; and Whereas 1997 has been declared the “International Year of the Reef” by the coral reef research community and over 40 national 111 STAT. 2766and international scientific, conservation, and academic organizations: Now, therefore, be it Resolved by the House of Representatives (the Senate concurring),
That the Congress recognizes the significance of maintaining the health and stability of coral reef ecosystems by— (1) promoting comprehensive stewardship for coral reef ecosystems; (2) discouraging unsustainable fisheries or other practices that are harmful to coral reefs and human health; (3) encouraging research, monitoring, and assessment of and education on coral reef ecosystems; (4) improving the coordination of coral reef efforts and activities of Federal agencies, academic institutions, nongovernmental organizations, and industry; and (5) promoting preservation and sustainable use of coral reef resources worldwide.
Agreed to October 21, 1997.
S. Con. Res. 56: CEREMONY FOR LESLIE TOWNES (BOB) HOPE—CAPITOL ROTUNDA AUTHORIZATION Senate Concurrent Resolution56 Oct. 23, 1997
CEREMONY FOR LESLIE TOWNES (BOB) HOPE—CAPITOL ROTUNDA AUTHORIZATION

Oct. 23, 1997

[S. Con. Res. 56]

 Resolved by the Senate (the House of Representatives concurring),
That the rotunda of the Capitol is authorized to be used on October 29, 1997, for a ceremony to honor Leslie Townes (Bob) Hope by conferring upon him the status of an honorary veteran of the Armed Forces of the United States. Physical preparations for the conduct of the ceremony shall be carried out in accordance with such conditions as may be prescribed by the Architect of the Capitol.
Agreed to October 23, 1997.
H. Con. Res. 167: ENROLLMENT CORRECTION—H.R. 2160 To correct a technical error in the enrollment of H.R. 2160. House Concurrent Resolution167 Oct. 29, 1997
ENROLLMENT CORRECTION—H.R. 2160
To correct a technical error in the enrollment of H.R. 2160.

Oct. 29, 1997

[H. Con. Res. 167]

 Resolved by the House of Representatives (the Senate concurring),
That in the enrollment of H.R. 2160 the Clerk of the House shall, in title IV, in the item relating to “DOMESTIC FOOD PROGRAMS—food stamp program”, strike the period and insert the following: “; Provided further, That none of the funds made available under this heading shall be used for studies and evaluations.”.
Agreed to October 29, 1997.
S. Con. Res. 61: “OUR FLAG”—SENATE PRINT Senate Concurrent Resolution61 Nov. 12, 1997
“OUR FLAG”—SENATE PRINT

Nov. 12, 1997

[S. Con. Res. 61]

 Resolved by the Senate (the House of Representatives concurring),
That (a) a revised edition of the publication entitled “Our Flag”, 111 STAT. 2767revised under the direction of the Joint Committee on Printing, shall be reprinted as a Senate document. (b) There shall be printed— (1)(A) 250,000 copies of the publication for the use of the House of Representatives, distributed in equal numbers to each Member; (B) 51,500 copies of the publication for the use of the Senate, distributed in equal numbers to each Member; (C) 2,000 copies of the publication for the use of the Joint Committee on Printing; and (D) 1,400 copies of the publication for distribution to the depository libraries; or (2) if the total printing and production costs of copies in paragraph (1) exceed $150,000, such number of copies of the publication as does not exceed total printing and production costs of $150,000, with distribution to be allocated in the same proportion as in paragraph (1).
Agreed to November 12, 1997.
S. Con. Res. 62: “HOW OUR LAWS ARE MADE”—SENATE PRINT Senate Concurrent Resolution62 Nov. 12, 1997
“HOW OUR LAWS ARE MADE”—SENATE PRINT

Nov. 12, 1997

[S. Con. Res. 62]

 Resolved by the Senate (the House of Representatives concurring),
That (a) a revised edition of the brochure entitled “How Our Laws Are Made”, under the direction of the Parliamentarian of the House of Representatives in consultation with the Parliamentarian of the Senate, shall be printed as a Senate document, with suitable paper cover in the style selected by the chairman of the Joint Committee on Printing. (b) There shall be printed— (1)(A) 250,000 copies of the brochure for the use of the House of Representatives, distributed in equal numbers to each Member; (B) 100,000 copies of the brochure for the use of the Senate, distributed in equal numbers to each Member; (C) 2,000 copies of the brochure for the use of the Joint Committee on Printing; and (D) 1,400 copies of the brochure for distribution to the depository libraries; or (2) if the total printing and production costs of copies in paragraph (1) exceed $180,000, such number of copies of the brochure as does not exceed total printing and production costs of $180,000, with distribution to be allocated in the same proportion as in paragraph (1).
Agreed to November 12, 1997.
S. Con. Res. 63: “THE CONSTITUTION OF THE UNITED STATES OF AMERICA”—SENATE PRINT Senate Concurrent Resolution63 Nov. 12, 1997
“THE CONSTITUTION OF THE UNITED STATES OF AMERICA”—SENATE PRINT

Nov. 12, 1997

[S. Con. Res. 63]

 Resolved by the Senate (the House of Representatives concurring),
That (a) a revised edition of the pamphlet entitled “The Constitution of the United States of America”, prepared under 111 STAT. 2768the direction of the Joint Committee on Printing, shall be printed as a Senate document, with appropriate illustration. (b) There shall be printed— (1)(A) 440,000 copies of the pamphlet for the use of the House of Representatives, distributed in equal numbers to each Member; (B) 100,000 copies of the pamphlet for the use of the Senate, distributed in equal numbers to each Member; (C) 2,000 copies of the pamphlet for the use of the Joint Committee on Printing; and (D) 1,400 copies of the pamphlet for distribution to the depository libraries; or (2) if the total printing and production costs of copies in paragraph (1) exceed $120,000, such number of copies of the pamphlet as does not exceed total printing and production costs of $120,000, with distribution to be allocated in the same proportion as in paragraph (1).
Agreed to November 12, 1997.
H. Con. Res. 194: JOINT SESSION—STATE OF THE UNION House Concurrent Resolution194 Nov. 13, 1997
JOINT SESSION—STATE OF THE UNION

Nov. 13, 1997

[H. Con. Res. 194]

 Resolved by the House of Representatives (the Senate concurring),
That the two Houses of Congress assemble in the Hall of the House of Representatives on Tuesday, January 27, 1998, at 9 p.m., for the purpose of receiving such communication as the President of the United States shall be pleased to make to them.
Agreed to November 13, 1997.
S. Con. Res. 68: ADJOURNMENT—SENATE AND HOUSE OF REPRESENTATIVES Senate Concurrent Resolution68 Nov. 13, 1997
ADJOURNMENT—SENATE AND HOUSE OF REPRESENTATIVES

Nov. 13, 1997

[S. Con. Res. 68]

 Resolved by the Senate (the House of Representatives concurring),
That when the House adjourns on the legislative day of Thursday, November 13, 1997, or Friday, November 14, 1997, on a motion offered pursuant to this concurrent resolution by the Majority Leader or his designee, it stand adjourned sine die, or until noon on the second day after Members are notified to reassemble pursuant to section 2 of this concurrent resolution, and that when the Senate adjourns on Thursday, November 13, 1997, or Friday, November 14, 1997, on a motion offered pursuant to this concurrent resolution by the Majority Leader or his designee, it stand adjourned sine die, or until noon on the second day after Members are notified to reassemble pursuant to section 2 of this concurrent resolution.
Sec. 2. The Speaker of the House and the Majority Leader of the Senate, acting jointly after consultation with the Minority Leader of the House and the Minority Leader of the Senate, shall notify the Members of the House and Senate, respectively, to reassemble whenever, in their opinion, the public interest snail warrant it.
111 STAT. 2769
Sec. 3. The Congress declares that clause 5 of rule III of the Rules of the House of Representatives and the order of the Senate of January 7, 1997, authorize for the duration of the One Hundred Fifth Congress the Clerk of the House of Representatives and the Secretary of the Senate, respectively, to receive messages from the President during periods when the House and Senate are not in session and thereby preserve until adjournment sine die of the final regular session of the One Hundred Fifth Congress the constitutional prerogative of the House and Senate to reconsider vetoed measures in light of the objections of the President, since the availability of the Clerk and the Secretary during any earlier adjournment of either House during the current Congress does not prevent the return by the President of any bill presented to him for approval.
Sec. 4. The Clerk of the House of Representatives shall inform the President of the United States of the adoption of this concurrent resolution.
Agreed to November 13, 1997.
S. Con. Res. 70: ENROLLMENT CORRECTION—S. 1026 Senate Concurrent Resolution70 Nov. 13, 1997
ENROLLMENT CORRECTION—S. 1026

Nov. 13, 1997

[S. Con. Res. 70]

 Resolved by the Senate (the House of Representatives concurring),
That, in the enrollment of the bill (S. 1026) to reauthorize the Export-Import Bank of the United States, the Secretary of the Senate shall strike subsection (a) of section 2 and insert the following: “(a) In General.—Section 7 of the Export-Import Bank Act of 1945 (12 U.S.C. 6350 is amended by striking ‘until’ and all that follows through ‘but’ and inserting ‘until the close of business on September 30, 2001, but’.”.
Agreed to November 13, 1997.
PROCLAMATIONS 6930 October 5, 1996 Fire Prevention Week, 1996 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6930 of October 5, 1996 111 STAT. 2773
Fire Prevention Week, 1996 By the President of the United States of America A Proclamation

Our Nation has a long tradition of unity in the face of adversity, and Americans have always stood together to fight one of our most terrifying and preventable problems—fire. We are fortunate to have so many dedicated public and private organizations working diligently to promote fire prevention and safety. Each October, Fire Prevention Week gives us an opportunity to remember family and friends who have been the victims of fire, and to redouble our efforts to prevent these tragedies.

Uncontrolled, fire can destroy homes, livelihoods, and lives. This year, in the wake of one of the most serious wildland fire seasons in history and a troubling series of arsons at houses of worship, we must join together and rededicate ourselves to fire prevention efforts. Whether working to stop church arsons or to avoid accidental fires in the home, we all have an important role to play.

The National Fire Protection Association has selected “Let’s Hear it for Fire Safety. Test Your Detectors!” as the theme for Fire Prevention Week, 1996, and joins with the Federal Emergency Management Agency to communicate this lifesaving message. This year's theme focuses on a vital and simple element of home fire protection—smoke detectors.

Smoke detectors can provide early warning and reduce the risk of dying in a home fire by almost half. The theme of this year’s Fire Prevention Week reinforces the need for regular testing of home smoke detectors. The combination of a working smoke detector with a well-rehearsed escape plan can enable people to exit safely and quickly in the event of a fire.

Thanks to the commitment and support of our Nation’s fire and emergency services, we continue to make fire prevention and fire safety a top priority in America. Too often, these dedicated champions of fire safety pay the ultimate price in service to their communities. Last year, 102 firefighters died, and more than 94,500 were injured. On Sunday, October 13, 1996, we will pay our respects to these courageous men and women at the National Fallen Firefighters Memorial in Emmitsburg, Maryland.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim October 6 through October 12, 1996, as Fire Prevention Week. I encourage the people of the United States to take an active role in fire prevention not only this week, but also throughout the year. I also call upon every citizen to pay tribute to the members of our fire services who have lost their lives or been injured in service to their communities, and to those men and women who carry on their noble tradition.

IN WITNESS WHEREOF, I have hereunto set my hand this fifth day of October, in the year of our Lord nineteen hundred and ninety-six, 111 STAT. 2774and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6931 October 5, 1996 German-American Day, 1996 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6931 of October 5, 1996
German-American Day, 1996 By the President of the United States of America A Proclamation

Germans were among the first settlers of the United States. They, like other immigrants to our country, came to America seeking a better life for themselves and their families. In building this better life, they have immeasurably enriched the lives of their fellow Americans.

From the beginning of the colonial period and throughout the history of our republic, German Americans have contributed their intellect, wealth, and culture to building, defending, and improving American life. Organized settlement in America by Germans began as early as 1683, with the arrival of German Mennonites in Pennsylvania at the invitation of William Penn. Pennsylvania soon became the center and stronghold of German settlement throughout colonial times as small, vigorous communities spread to Maryland and the other colonies. Today, robust German-American communities can be found throughout the United States.

The strength of character and personal honor so important in the German cultural tradition have also found their way into the core values of American society. More U.S. citizens can claim German heritage than that of any other national group. And every successive generation of German Americans seems to produce new heroes and heroines who earn the admiration of a grateful world.

For example, Carl Schurz served as a Union General in the Civil War and later rose to become a distinguished American statesman, both as Senator from Missouri and as Secretary of the Interior. Johann Peter Zenger, the publisher of New York Weekly Journal in the early 18th century, was an early and vigorous champion of the free press in America. And German-born Albert Einstein made monumental and historic contributions to our understanding of the universe.

Our culture has also benefited abundantly from German-American women. Anna Ottendorfer was a talented newspaper publisher and philanthropist. The four Klumpke sisters enriched American life with their contributions to art, medicine, music, and astronomy, while Lillian Blauvelt and Fannie Bloomfield Zeisler enhanced American music.

America has welcomed Germans in search of civic freedoms, and their idealism has reinforced what was best in their new country. German-American men and women have contributed immensely to the fabric of our Nation, and it is appropriate that we pause to honor their important role in building our country.

NOW, THEREFORE. I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Cons-111 STAT. 2775titution and laws of the United States, do hereby proclaim Sunday, October 6, 1996, as German-American Day. I encourage Americans everywhere to recognize and celebrate the contributions that millions of people of German ancestry have made to our Nation’s liberty, democracy, and prosperity.

IN WITNESS WHEREOF, I have hereunto set my hand this fifth day of October, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6932 October 7, 1996 National Wildlife Refuge Week, 1996 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6932 of October 7, 1996
National Wildlife Refuge Week, 1996 By the President of the United States of America A Proclamation

As we prepare to meet the challenges of the 21st century, protecting the environment remains our sacred responsibility. Our National Wildlife Refuge System is a network of special places set aside to conserve the natural habitat of our fish and wildlife. My Administration is dedicated to strengthening this invaluable network of refuges that truly enhance the lives of all Americans.

President Theodore Roosevelt established the first National Wildlife Refuge in 1903, and his vision remains the guiding force for the Refuge System today. “... keeping for our children’s children, as a priceless heritage, all the delicate beauty of the lesser and all the burly majesty of the mightier forms of wild life .... Wild beasts and birds are by right not the property merely of the people alive today, but the property of the unborn generations whose belongings we have no right to squander.”

What began 93 years ago with a small island in Florida has grown into a system of more than 500 refuges spanning all 50 States and several trust territories. It is home to resident and migratory wildlife and includes lands of breathtaking beauty and diversity, from the tropical mangroves of Florida’s Key Deer National Wildlife Refuge to the majestic peaks of the Arctic National Wildlife Refuge in Alaska. This mosaic of magnificent places provides Americans a wide range of opportunities—both educational and recreational—to learn about our environment and our country’s heritage, to observe and photograph, and to hunt and fish. Our national wildlife refuges are among our most treasured areas, and we must reaffirm our commitment to preserving these precious resources for our children, for our communities, and for future generations. Working together, we can ensure the health and vitality of our wildlife and our Nation.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim October 6 through October 12, 1996, as National Wildlife Refuge Week. I invite all Americans to learn about, appreciate, and celebrate this magnificent collection of lands that we as a people have set aside for wildlife and 111 STAT. 2776for the enjoyment of future generations. I also ask all to join me in a renewed commitment to responsible stewardship of our country’s irreplaceable natural resources.

IN WITNESS WHEREOF, I have hereunto set my hand this seventh day of October, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6933 October 7, 1996 Child Health Day, 1996 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6933 of October 7, 1996
Child Health Day, 1996 By the President of the United States of America A Proclamation

The health of our children is part of our heritage as a Nation, passed from one generation to the next. It is also our hope for the future. Our children embody our dreams and are the vessel through which we seek an ever deeper understanding of the full reach of human promise. Their physical, mental, and social well-being is the fulfillment of that potential.

For previous generations, diseases were a deadly shadow hovering over every new birth. Thanks in large part to medical advances and improved public health practices, most of today's children are no longer threatened by these afflictions. Childhood immunizations alone have saved countless American lives in the past decade, and today we are increasing our efforts to identify and immunize children who need this protection.

Since we now have the knowledge and resources to protect our children from many childhood diseases—including diphtheria, pertussis, poliomyelitis, measles, mumps, and rubella—we have the obligation to reach out to our population and do so. Immunization is a cost-effective, commonsense means of fighting disease, and States wisely require immunizations for schoolchildren and for children attending child care centers. I signed the Comprehensive Childhood Immunization Initiative so that children will receive the vaccinations they need. This initiative makes vaccines affordable for families and improves immunization outreach, with the goal that 90 percent of all two-year-olds should be fully vaccinated by the year 2000.

However, even if we achieve complete immunization of all American children, our youth today face another potential threat every bit as dangerous as disease—the devastation of violence. Children are becoming more frequent victims, and violence among children is increasing as they emulate the violence in their environment. Each year the tragic effects can be seen in the lives of millions of children. It can be observed among those who are neglected or abused, of whom more than 1,000 die each year. It can be found especially in the lives of those who witness violence against a parent—and who themselves face a significant chance of becoming victims of that same brutality.

111 STAT. 2777

As a Nation, we must continue our commitment to eliminating violence and to strengthening children and families. To that end, we have launched initiatives to encourage the use of school uniforms, the adoption of curfews, and the intensification of anti-truancy programs. And we have also expanded the drug-free school program to include anti-crime efforts as well, enhancing the overall safety of our schools.

America’s future rests with healthy children and strong families. All across this land—within our homes and health care settings; our churches and communities; our schools and child care centers; our legislatures and halls of justice; our factories, shops, and offices—we are all charged with the responsibility to safeguard our legacy by protecting and nurturing the bodies, minds, and spirits of our children.

To emphasize the significance of fostering children's healthy development, the Congress, by joint resolution approved May 18, 1928, as amended (36 U.S.C. 143), has called for die designation of the first Monday in October as “Child Health Day” and has requested the President to issue a proclamation in observance of this day.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim Monday, October 7, 1996, as Child Health Day. On that day and every day throughout the year, I urge all Americans to renew and deepen their commitment to protecting our most precious natural resource—our children.

IN WITNESS WHEREOF, I have hereunto set my hand this seventh day of October, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6934 October 9, 1996 Leif Erikson Day, 1996 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6934 of October 9, 1996
Leif Erikson Day, 1996 By the President of the United States of America A Proclamation

Leif Erikson Day commemorates the life and the voyages of the great Nordic explorer who first set foot on the fertile soil of North America about one thousand years ago. On this day, we also celebrate the close bonds of friendship between the people of the United States and the Nordic peoples, as well as the outstanding contributions that Nordic Americans have made to our country.

We have good cause to mark this day. The pioneering spirit that Leif Erikson and his followers demonstrated embodies the virtues of independence, self-determination, and initiative that are firmly rooted in our national consciousness today. As a vital transatlantic bridge between the continents of America and Europe, the Nordic countries of Iceland, Norway, Sweden, Denmark, and Finland have repeatedly shown a bedrock commitment to the democratic values that contributed greatly to the formation of our own national ideals.

Just as our forebears persevered through what sometimes seemed insurmountable odds to transform adversity into prosperity, we have contin-111 STAT. 2778ued to champion the cause of liberty and to reach out without reservation or hesitation to our neighbors and those in need around the world. The same heritage that enabled our ancestors to brave wars and uncharted frontiers—because they were convinced that they were working to create a better world—also emboldens us today in our cooperative effort to integrate the Baltic states of Estonia, Latvia, and Lithuania into the Western community of nations.

Our immigrant ancestors survived unthinkable hardships to achieve economic, religious, and political freedom. Their dreams were big, but so was their willingness to work for them. The link they forged across the oceans is sustained today by a common commitment to freedom and the rule of law—ideals that have strong roots in the civic and legal traditions of Nordic countries dating back at least to medieval times.

In honor of Leif Erikson—son of Iceland, grandson of Norway—the Congress, by joint resolution approved on September 2, 1964 (Public Law 88–566), has authorized and requested the President to designate October 9 of each year as “Leif Erikson Day.”

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim October 9, 1996, as Leif Erikson Day. I encourage the people of the United States to observe this occasion with appropriate ceremonies and activities commemorating our rich Nordic-American heritage.

IN WITNESS WHEREOF, I have hereunto set my hand this ninth day of October, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6935 October 10, 1996 National Day of Concern About Young People and Gun Violence, 1996 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6935 of October 10, 1996
National Day of Concern About Young People and Gun Violence, 1996 By the President of the United States of America A Proclamation

Few losses are more difficult to face than the death of a young person. Such deaths are even more appalling when they result from violence by another youth. It is a tragedy of modem American life that thousands of our young people each year suffer deadly violence initiated by their peers. Federal Bureau of Investigation (FBI) data show that in the decade between 1984 and 1993 the number of homicide arrests of juveniles skyrocketed by 168 percent. Even more disturbing, the fastest increase in violent crime arrests of juveniles occurred among children 10 to 12 years old. Demographic experts predicted that, if those trends continued, juvenile violent crime arrests would double by the year 2010.

Now, new FBI data show reason for cautious optimism. For the first time in 7 years, the juvenile crime arrest rate decreased—by 2.9 percent in 1995. In addition, juvenile arrests for murder declined by 15.2 percent in 1995—the largest 1-year decrease in more than 10 years. 111 STAT. 2779Since 1993, the arrest rate for murder among juveniles has decreased by 22.8 percent.

Although this trend is encouraging, far too many of our young people still are committing violent acts. Fueling this problem is the prevalence of, and easy access to, illegal firearms on our Nation’s streets. Between 1985 and 1992, the number of juvenile homicides not involving guns increased by 20 percent, while the number involving guns jumped by 300 percent. Because guns are easily available, routine fights among young people often turn into gun battles. Then, as the tragic cycle of violence repeats itself, more and more young people, fearing for their safety, arm themselves. The resulting escalation of gun violence and death threatens the Nation’s most precious resource for the future—our young people.

We have expanded an experimental tracing program that targets those who provide or sell guns to young people. But we need to do more to keep guns out of the hands of our kids. We need to further improve and vigorously enforce our gun laws. And we need to reduce the sale and use of illegal drugs, which also fuel gun violence.

We also need to begin teaching children as early as possible how to choose not to be violent. All of us can take an active role in making sure that conflict resolution and other anti-violence programs are in place in our local schools, community centers, and places of worship. Community leaders, businesses, and other local institutions must create “safe havens” where children can go after school. Such actions can be a tangible sign of care and concern on the part of the community. Most importantly, parents need to teach their children right from wrong, so that they can learn the core values of our society and live according to them. In this undertaking, parents must be sensitive, patient, diligent, and fair, in order to provide a proper nonviolent model.

While parents, teachers, clergy, and the community at large can provide encouragement, the ultimate responsibility for reducing youth violence lies with our young people themselves. They must commit to resolve disputes without violence and to avoid violent situations and friends. They must become positive role models for their peers, siblings, and younger children. Many young people have already made this commitment and are working in their schools and neighborhoods to end violence. For this, we salute them and urge them to continue to work for peaceful solutions. We call upon all young people to make this same commitment.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim October 10, 1996, as a National Day of Concern About Young People and Gun Violence. On this day I call upon young people in classrooms and playgrounds across the United States to make a solemn decision about their future. I call upon them voluntarily to sign a pledge promising that they will never take a gun to school, that they will never use a gun to settle a dispute, and that they will use their influence to prevent friends from using guns to settle disputes. Finally, I call upon all Americans to commit themselves anew to helping our Nation's young people avoid violence and grow up to be happy, healthy, and productive adults.

111 STAT. 2780

IN WITNESS WHEREOF, I have hereunto set my hand this tenth day of October, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first
WILLIAM J. CLINTON 6936 October 10, 1996 General Pulaski Memorial Day, 1996 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6936 of October 10, 1996
General Pulaski Memorial Day, 1996 By the President of the United States of America A Proclamation

On October 11, we observe the 217th anniversary of the death of a great military hero from American history. General Casimir Pulaski. Every year on this date, Americans and Poles together honor this valiant soldier, who spent his life fighting for freedom on both sides of the Atlantic. General Pulaski’s life and career are a vivid reminder of the strong historical bonds between Poland and the United States. These bonds have been forged not only by the millions of Polish Americans who have helped make our country great, but also by our two countries' shared dedication to the principles of liberty and independence.

Pulaski, born into a family of nobles, first fought oppression at his father’s side, battling the forces of Prussia and Imperial Russia to preserve the liberty of his Polish homeland. Exiled by the Russians, he was recruited into the American colonies’ Continental Army by Benjamin Franklin and brought his bravery and passion for freedom to numerous battles during the Revolutionary War. General Pulaski sacrificed his life for the cause of liberty during the siege of Savannah as he protected American troops.

In our own time, we have seen the Polish people follow the example of General Pulaski and renew their dedication to freedom—rebuilding their homeland in spite of Nazi oppression and. later, communist tyranny. Today, Poland has regained its sovereignty and fashioned a sturdy representative democracy. For Americans and Poles alike, Casimir Pulaski’s sacrifice for independence remains a mode) of courage and commitment that can stir us to reach new heights of democratic justice and liberty.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim Friday, October 11, 1996, as General Pulaski Memorial Day. I encourage Americans everywhere to commemorate this occasion with appropriate ceremonies and activities paying tribute to Casimir Pulaski and honoring all those who carry on his mission.

IN WITNESS WHEREOF, I have hereunto set my hand this tenth day of October, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6937 October 11, 1996 National Character Counts Week, 1996 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6937 of October 11, 1996 111 STAT. 2781
National Character Counts Week, 1996 By the President of the United States of America A Proclamation

One of our most important goals as a Nation is to make this a better world for all people. Millions around the globe look to America as a champion of justice, and we must always strive to encourage the good and denounce the bad.

This week, as a Nation, we celebrate the fact that “Character Counts.” Whether in civic activities or in our daily lives at work and at home, we all contribute regularly to our American community and our national purpose—our sense of who we are as a people. In the end, the character of our Nation is determined by the character of our citizens.

During this special week, we recognize that character is not a quality we are born with; we must learn it. This means we must ensure that it is taught, clearly and thoughtfully, to our youth. Individual character involves honoring and embracing certain core ethical values: honesty, respect, responsibility, hard work, fairness, caring, civic virtue, and citizenship. Americans must do everything possible to create a society in which these virtues are not only taught but also acted out in daily life so that our young people can witness firsthand their value and learn right from wrong.

My Administration has made this effort a top priority. Our Improving America's Schools Act promotes initiatives in character education, just as the Goals 2000: Educate America Act recognizes the crucial role of the family in nurturing strong values and encouraging children to embrace academic achievement. Our AmeriCorps national service program offers young people a practical means through which to demonstrate their beliefs in the civic virtues that traditionally have given our Nation much of its strength of character.

The family remains, of course, the core source of our values. Parents must teach their children from the earliest age, the difference between right and wrong. But we all must do our part. Teachers, religious leaders, and other early-childhood role models must display the highest standards of respect for themselves and others; young people must commit themselves to dealing nonviolently with the inevitable problems and difficulties they will encounter; and both public- and private-sector institutions must adopt corporate behavior that encourages individual character development.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim October 13 through 19, 1996, as National Character Counts Week. I call upon the people of the United States, Government officials, educators, and volunteers, to observe this week with appropriate programs, ceremonies, and activities.

IN WITNESS WHEREOF, I have hereunto set my hand this eleventh day of October, in the year of our Lord nineteen hundred and ninety-111 STAT. 2782six, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6938 October 11, 1996 National School Lunch Week, 1996 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6938 of October 11, 1996
National School Lunch Week, 1996 By the President of the United States of America A Proclamation

This school year, schools across the country are serving more healthful and more appealing school meals, and school-children are learning to make food choices for a nutritious diet. The National School Lunch Program, which began in 1946, is celebrating its 50th anniversary year with historic changes that will reduce diet-related diseases and improve the health outlook for America’s children.

The 1996–97 school year is the first year that school meals must meet the Dietary Guidelines for Americans under the new School Meals Initiative for Healthy Children. This initiative, created to help schools make necessary improvements, is providing nutrition education for children and training and technical assistance for school food-service professionals. Early reports from pilot communities tell us that we are getting results. Food-service professionals are seeing children eat more fruits and vegetables. With the help of dedicated teachers, they are becoming better educated about what their bodies need.

Improvements in school meals and nutrition education enhance the health of the 50 million children in the Nation’s 94,000 schools— strengthening the safety net for poor children who rely on school meals as their primary source of daily nutrition. Wholesome meals improve our children's ability to learn today and brighten their health outlook for tomorrow.

These improvements are already a reality at the local level. Team Nutrition Schools—of which there are now more than 14,000—reach 8.1 million children. These schools are community focal points for change, leading the way in bringing together teachers, parents, health professionals, local businesses, and industry leaders to promote nutrition education and to work for more healthful school meals. These schools benefit from the resources made available through an innovative network of public-private partnerships. More than 200 organizations are part of an extensive support network that dramatically increases the impact and reach of a relatively small Federal investment.

Since President Truman signed the National School Lunch Act 50 years ago, the Federal Government and local school food-service professionals have worked in partnership to meet the nutritional needs of America’s children. Now, together, they are ushering in an era of historic change and continuous improvement that promise a healthier future for all Americans.

In recognition of the contributions of the National School Lunch Program to the nutritional well-being of children, the Congress, by joint resolution of October 9, 1962 (Public Law No. 87–780), has designated 111 STAT. 2783the week beginning the second Sunday in October of each year as “National School Lunch Week” and has requested the President to issue a proclamation in observance of that week.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim the week beginning October 13, 1996, as National School Lunch Week. I call upon all Americans to recognize those individuals whose efforts contribute to the success of the National School Lunch Program and to observe this week with appropriate ceremonies and activities.

IN WITNESS WHEREOF, I have hereunto set my hand this eleventh day of October, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6939 October 11, 1996 National Children’s Day, 1996 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6939 of October 11, 1996
National Children’s Day, 1996 By the President of the United States of America A Proclamation

Our Nation benefits when every American child is truly valued and cherished. We have no greater responsibility or hope for our future than our children, and the promise of a better tomorrow depends upon the love, support, education, and encouragement that we give to each of them. It is up to all of us—parents and families, schools, churches, and community organizations—to join in the critical endeavor of putting the needs of our children first. Only when we reaffirm our commitment to our children's well-being can we truly say that we are prepared for the challenges that await us in the next century.

America is a country of many blessings—a rich land, a thriving democracy, a diverse and determined people. Our culture is built on faith in freedom, and opportunity, and on the spirit of community. In a Nation of such infinite promise, too many of our children face great obstacles in reaching their full potential, and it is imperative that we not turn our backs on them.

Because safety, health, a clean environment, quality education, and economic security are the keys to a brighter future, they are necessary investments in the healthy growth and development of our children. Through measures such as expanding Head Start and child care, preserving Medicaid, enhancing child protection, protecting the environment, and increasing educational opportunity for all students, my Administration has demonstrated its commitment to ensuring that every child has the tools to become a productive citizen.

As we work together in a spirit of community, let us seek to instill confidence, hope, pride, and self-esteem in our young people. Because today’s children are tomorrow’s leaders, educators, and parents, all of us—adults and children—forever will benefit from this commitment.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Con-111 STAT. 2784stitution and laws of the United States, do hereby proclaim October 13, 1996, as National Children’s Day. I urge all Americans to express their love and appreciation, not only on this day but also on all days, for their children and all of the children of this Nation. I invite Federal officials, State and local governments, and particularly the American family, to join in observing this day with appropriate ceremonies and activities to honor our Nation’s children.

IN WITNESS WHEREOF, I have hereunto set my hand this eleventh day of October, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6940 October 11, 1996 Columbus Day, 1996 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6940 of October 11, 1996
Columbus Day, 1996 By the President of the United States of America A Proclamation

Throughout our history, America has been inspired by the courage and daring of Christopher Columbus. Like him, we are a people who dare to dream, to chart a bold course, and to surmount formidable obstacles to reach new horizons.

Columbus’ arrival in North America not only confirmed his beliefs about our planet, but also initiated an epic struggle between the Old and New Worlds. Yet out of that triumphant voyage and the meeting of many peoples developed a Nation and a way of life vastly unlike those Columbus left behind.

The expedition that Columbus—an Italian supported by the Spanish Crown—began more than 500 years ago, continues today as we experience and celebrate the vibrant influences of varied civilizations, not only from Europe, but also from around the world. America is stronger because of this diversity, and the democracy we cherish flourishes in the great mosaic we have created since 1492. Americans of Italian and Spanish heritage can be particularly proud, not only of Columbus’ achievements, but also of their own contributions to our country.

As we honor and remember Christopher Columbus, let us use his example as a beacon to help guide us into the 21st century. His life, his voyages, and—above all—his vision can inspire us as we prepare for the challenges that lie ahead. Let us remember that all of us, regardless of our origins, are important participants in that journey, and that our uncertainty about what lies over the horizon should not shake our faith that, together, we will succeed.

In recognition of Columbus’ epic achievement, the Congress, by joint resolution of April 30, 1934 (48 Stat. 657), and an Act of June 28, 1968 (82 Stat. 250), has requested the President to proclaim the second Monday in October of each year as “Columbus Day.”

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim October 14, 1996, as Columbus Day. I call upon the people of the United States to observe this day 111 STAT. 2785with appropriate ceremonies and activities. I also direct that the flag of the United States be displayed on all public buildings on the appointed day in honor of Christopher Columbus.

IN WITNESS WHEREOF, I have hereunto set my hand this eleventh day of October, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6941 October 14, 1996 White Cane Safety Day, 1996 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6941 of October 14, 1996
White Cane Safety Day, 1996 By the President of the United States of America A Proclamation

In the summer of 1996, the remarkable display of athletic excellence at the Tenth Paralympic Games in Atlanta, Georgia, inspired viewers around the world. Athletes from across our country, including many who are blind or visually impaired, participated in these games. The tenacity and commitment to excellence that these athletes showed in Atlanta are rich resources for our Nation. From their performance in the Paralympics, and indeed from their many contributions throughout our Nation’s history, blind and visually impaired Americans have demonstrated how much they have to contribute.

Individuals with disabilities, like all people, use many tools in their everyday lives, some simple and some technologically sophisticated. The tool most commonly used by blind and visually impaired people is the white cane. This basic instrument enables them to detect obstacles, steps, drop-offs, and changes in surface textures. The independence that blind and visually impaired people gain through the use of the white cane enriches their lives—and those of all Americans—by allowing them to participate fully in and contribute generously to our society.

Blind and visually impaired individuals make valuable contributions to our society and our economy. But they need more than the white cane to achieve their full potential; they also need equal opportunity and protection from discrimination. That is why we must continue to vigorously enforce the Americans with Disabilities Act, which prohibits discrimination against blind and visually impaired people and those with other disabilities, and ensures them access to services that all other Americans take for granted.

To honor the numerous achievements of blind and visually impaired individuals, and to recognize the significance of the white cane as a symbol of their freedom and independence in our society, the Congress of the United States, by joint resolution approved October 6, 1964, has designated October 15 of each year as “White Cane Safety Day,” and authorized the President to issue a proclamation in observance of this commemoration.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim October 15, 1996, as White Cane 111 STAT. 2786Safety Day. I call upon the people of the United States, government officials, educators, and business leaders to observe this day with appropriate programs, ceremonies, and activities.

IN WITNESS WHEREOF, I have hereunto set my hand this fourteenth day of October, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6942 October 17, 1996 To Amend the Generalized System of Preferences Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6942 of October 17, 1996
To Amend the Generalized System of Preferences By the President of the United States of America A Proclamation

1. Sections 501(1) and (4) of the Trade Act of 1974, as amended (“Trade Act”) (19 U.S.C. 2461(1) and (4)), provide that, in affording duty-free treatment under the Generalized System of Preferences (GSP), the President shall have due regard for, among other factors, the effect such action will have on furthering the economic development of a beneficiary developing country and the extent of the beneficiary developing country’s competitiveness with respect to eligible articles. Section 502(c)(2) of the Trade Act (19 U.S.C. 2462(c)(2)) provides that, in determining whether to designate any country as a beneficiary developing country for purposes of the GSP, the President shall take into account various factors, including the country’s level of economic development, the country’s per capita gross national product, the living standards of its inhabitants, and any other economic factors he deems appropriate. Section 502(d) of the Trade Act (19 U.S.C. 2462(d)) authorizes the President to withdraw, suspend, or limit the application of duty-free treatment under the GSP with respect to any country after considering the factors set forth in sections 501 and 502(c) of the Trade Act. Section 502(f)(2) of the Trade Act (19 U.S.C. 2462(f)(2)) requires the President to notify the Congress and the affected country, at least 60 days before termination, of the President’s intention to terminate the affected country's designation as a beneficiary developing country for purposes of the GSP.

2. Section 502(e) of the Trade Act (19 U.S.C. 2462(e)) provides that the President shall terminate the designation of a country as a beneficiary developing country if the President determines that such country has become a “high income” country as defined by the official statistics of the International Bank for Reconstruction and Development. Termination is effective on January 1 of the second year following the year in which such determination is made.

3. Section 502(c)(7) of the Trade Act (19 U.S.C. 2462(c)(7)) provides that, in determining whether to designate any country a beneficiary developing country under this section, the President shall take into account whether the country has taken or is taking steps to afford internationally recognized worker rights to workers in the country.

4. Section 502(a)(1) of the Trade Act (19 U.S.C. 2462(a)(1)) authorizes the President to designate countries as beneficiary developing coun-111 STAT. 2787tries for purposes of the GSP. Section 503(c)(2)(F) of the Trade Act (19 U.S.C. 2463(c)(2)(F)) authorizes the President to disregard the limitations provided in section 503(c)(2)(A)(i)(II) of the Trade Act (19 U.S.C. 2463(c)(2)(A)(i)(II)) with respect to any eligible article if the aggregate appraised value of the imports of such article into the United States during the preceding calendar year is de minimis.

5. Section 502(a)(2) of the Trade Act (19 U.S.C. 2462(a)(2)) authorizes the President to designate any beneficiary developing country as a least-developed beneficiary developing country for purposes of the GSP based on the considerations in sections 501 and 502(c) of the Trade Act.

6. Pursuant to section 502(d) of the Trade Act, and having considered the factors set forth in sections 501 and 502(c)(2), I have determined that Malaysia is sufficiently advanced in economic development and improved in trade competitiveness that continued preferential treatment under the GSP is not warranted, and that it is appropriate to terminate the designation of Malaysia as a beneficiary developing country for purposes of the GSP effective January 1, 1997. In order to take into account the termination of benefits under the GSP for articles imported from Malaysia, I have determined that it is appropriate to: (i) terminate the designation of Malaysia for GSP purposes as a member of the Association of South East Asian Nations (“ASEAN”) and to modify general note 4(a) of the Harmonized Tariff Schedule of the United States (“HTS”) to reflect such termination, (ii) delete from general note 4(d) of the HTS and from pertinent HTS subheadings all references to particular products of Malaysia which are currently excluded from preferential tariff treatment under the GSP, and (iii) to terminate any waivers of the competitive need limits granted to Malaysia pursuant to section 503(d) of the Trade Act (19 U.S.C. 2463(d)).

7. Pursuant to section 502(e) of the Trade Act, I have determined that Cyprus, Aruba, Macau, the Netherlands Antilles, Greenland, and the Cayman Islands meet the definition of a “high income” country as defined by the official statistics of the International Bank for Reconstruction and Development. As a result and pursuant to section 502(e) of the Trade Act, I am terminating the preferential treatment under the GSP for articles that are currently eligible for such treatment and that are imported from Cyprus, Aruba, Macau, the Netherlands Antilles, Greenland, and the Cayman Islands effective January 1, 1998.

8. Pursuant to section 502(d) of the Trade Act, and having considered the factors set forth in sections 501 and 502(c)(7), I have determined that it is appropriate to suspend some of Pakistan’s GSP benefits because of insufficient progress on affording workers in that country internationally recognized worker rights. In order to reflect the suspension of benefits under the GSP for certain articles imported from Pakistan, I have determined that it is appropriate to modify general note 4(d) of the HTS and pertinent HTS subheadings so that Pakistan will no longer receive preferential tariff treatment under the GSP with respect to certain eligible articles effective July 1, 1996.

9. Pursuant to section 502(a)(1) of the Trade Act, I am acting to correct the name of Guinea-Bissau and the Republic of Yemen in the HTS, beneficiary developing countries previously proclaimed. In addition, I have determined that it is appropriate to disregard section 503(c)(2)(A)(i)(II) of the Trade Act with respect to certain eligible arti-111 STAT. 2788cles from certain beneficiary developing countries based on imports for calendar year 1994 and to restore preferential treatment under the GSP to imports of such articles from such countries.

10. Pursuant to sections 502(a)(2) and 502(d) of the Trade Act, and having considered the factors set forth in sections 501 and 502(c), I have determined that Botswana and Western Samoa should be deleted from the list of least-developed beneficiary developing countries and Angola, Ethiopia, Madagascar. Zaire, and Zambia should be added.

11. Section 604 of the Trade Act, as amended (19 U.S.C. 2483), authorizes the President to embody in the HTS the substance of the relevant provisions of that Act, and of other Acts affecting import treatment, and actions thereunder.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, acting under the authority vested in me by the Constitution and the laws of the United States, including but not limited to section 301 of Title 3, United States Code, and Title V and section 604 of the Trade Act, do proclaim that:

(1) In order to terminate the designation of Malaysia as a beneficiary developing country under the GSP and to modify the list of beneficiary developing countries designated as least-developed beneficiary developing countries for purposes of the GSP, the HTS is modified as provided in Annex I to this proclamation.

(2) In order to terminate the designation of Cyprus, Aruba, Macau, the Netherlands Antilles, Greenland, and the Cayman Islands as beneficiary developing countries under the GSP, the HTS is modified as provided in Annex II to this proclamation.

(3) In order to reflect the suspension of benefits under the GSP for certain articles imported from Pakistan, the HTS is modified as provided in Annex III to this proclamation.

(4) In order to correct the name of Guinea-Bissau and Republic of Yemen and to restore preferential treatment to certain eligible articles from certain beneficiary developing countries as a result of granting of de minimis waivers to such articles, the HTS is modified as provided in Annex IV to this proclamation.

(5) I delegate to the United States Trade Representative the powers granted to me in section 502(f)(2) of the Trade Act to notify a country of my intention to terminate that country’s status as a beneficiary developing country for the purposes of the GSP.

(6) Any provisions of previous proclamations and Executive orders inconsistent with the provisions of this proclamation are hereby superseded to the extent of such inconsistency.

(7) The modifications to the HTS made in paragraphs (1) through (4) of this proclamation shall be effective with respect to articles both: (i) imported on or after January 1, 1976, and (ii) entered, or withdrawn from warehouse for consumption, on or after the date specified in the respective Annex.

IN WITNESS WHEREOF, I have hereunto set my hand this seventeenth day of October, in the year of our Lord nineteen hundred and ninety-111 STAT. 2789six, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON Annex I

Effective with respect to articles both: (1) imported on or after January 1, 1976, and (ii) entered, or withdrawn from warehouse for consumption, on or after January 1, 1997.

Section A.

Modification in the HTS of an article's preferential tariff treatment under the GSP.

For the following HTS provisions, the Rates of Duty 1 Special subcolumn is modified by deleting the symbol “A*” and inserting an “A” in lieu thereof.

4015.11.00 8521.10.90 8528.21.16 9006.53.00
4418.20.40 8528.12.12 8528.21.19
8519.21.00 8528.12.16 8528.21.41
8519.99.00 8528.12.36 8528.30.30
Section B. Modifications to general note 4 of the HTS. (1). General note 4(a) is modified by: (a). deleting “Malaysia” from the list of independent countries. (b). deleting “Malaysia” from the list of countries entitled “Members of the Association of South East Asian Nations (ASEAN) Eligible for GSP except Brunei Darussalam and Singapore”. (c). deleting the title “Members of the Association of South East Asian Nations (ASEAN) Eligible for GSP except Brunei Darussalam and Singapore” and inserting in lieu thereof “Members of the Association of South East Asian Nations (ASEAN) Eligible for GSP except Brunei Darussalam, Malaysia and Singapore”. (2). General note 4(b) is modified by: (a). deleting “Botswana” and “Western Samoa”. (b). adding, in alphabetical order, the following countries:
Angola Zaire
Ethiopia Zambia
Madagascar
(3). General note 4(d) is modified by: (a). deleting the following HTS provisions and the countries set out opposite such provisions:
4015.11.00 Malaysia 8528.12.36 Malaysia
4418.20.40 Malaysia 8528.21.16 Malaysia
8519.21.00 Malaysia 8528.21.19 Malaysia
8519.99.00 Malaysia 8528.21.41 Malaysia
8521.10.90 Malaysia 8528.30.30 Malaysia
8528.12.12 Malaysia 9006.53.00 Malaysia
8528.12.16 Malaysia
(b). deleting the countries set out opposite the following HTS subheadings:
1605.10.20 Malaysia 8471.49.26 Malaysia
3823.11.00 Malaysia 8471.49.29 Malaysia
3823.12.00 Malaysia 8471.60.35 Malaysia
3824.90.40 Malaysia 8471.60.45 Malaysia
111 STAT. 2790 Annex II

Effective with respect to articles both: (i) imported on or after January 1, 1976, and (ii) entered, or withdrawn from warehouse for consumption, on or after January 1, 1998.

General note 4(a) is modified by:

(A). deleting “Cyprus” from the list of independent countries. (B). deleting, from the list of non-independent countries and territories, the following:
Aruba Macau
Cayman Islands Netherlands Antilles
Greenland
Annex III

Effective with respect to articles both: (i) imported on or after January 1, 1976, and (ii) entered, or withdrawn from warehouse for consumption, on or after July 1, 1996.
Section A. Modification in the HTS of an article's preferential tariff treatment under the GSP.

For the following HTS subheadings, the Rates of Duty 1 Special subcolumn is modified by deleting the symbol “A” and inserting an “A*” in lieu thereof.

3926.20.30 5702.91.20
4203.21.55 5805.00.20
4203.21.60 6304.99.10
4203.21.80 6304.99.40
5701.10.13 9506.62.80
5702.10.10 9506.91.00
Section B. Modifications to general note 4(d) of the HTS.

General note 4(d) is modified by:

(1). inserting, in numerical sequence, the following HTS subheadings and the country set out opposite such subheadings:
3926.20.30 Pakistan 5702.91.20 Pakistan
4203.21.55 Pakistan 5805.00.20 Pakistan
4203.21.60 Pakistan 6304.99.10 Pakistan
4203.21.80 Pakistan 6304.99.40 Pakistan
5701.10.13 Pakistan 9506.62.80 Pakistan
5702.10.10 Pakistan 9506.91.00 Pakistan
(2). inserting, in alphabetical order, after the HTS subheading enumerated in such note the country set out opposite the following HTS subheadings:
4203.21.20 Pakistan
9018.90.80 Pakistan
111 STAT. 2791 Annex IV

Effective with respect to articles both: (i) imported on or after January 1, 1976, and (ii) entered, or withdrawn from warehouse for consumption, on or after October 1, 1996.

Section A.

Modification in the HTS of an article's preferential tariff treatment under the GSP.

For the following HTS provisions, the Rates of Duty 1 Special subcolumn is modified by deleting the symbol “A*” and inserting an “A” in lieu thereof.

0708.10.20 0811.90.50 2008.99.35 4823.90.20 8402.20.00
0708.10.40 0811.90.55 2106.90.52 5607.30.20 8414.90.30
0710.22.15 0813.40.10 2202.90.36 5609.00.20 8450.90.40
0710.29.05 0813.40.80 2202.90.37 6501.00.60 8483.50.40
0710.29.30 1106.30.20 2207.10.30 7002.10.20 8519.31.00
0710.80.50 1601.00.40 2208.90.10 7109.00.00 8528.12.04
0710.80.65 1604.16.30 2309.90.70 7113.20.21 8528.21.05
0710.80.93 1604.30.20 2401.20.57 7114.19.00 8528.30.10
0711.30.00 1605.10.05 2516.90.00 7308.20.00 8802.60.90
0711.40.00 1702.90.35 4104.31.20 7319.20.00 9102.29.04
0714.10.20 1703.90.30 4202.22.35 7407.29.15 9303.90.80
0714.20.20 1902.11.40 4412.19.30 7603.10.00 9401.90.15
0714.90.10 2005.80.00 4412.19.40 7614.90.50 9606.29.20
0802.50.20 2007.99.40 4412.92.40 8107.90.00 9614.20.60
0802.50.40 2008.19.30 4412.99.45 8112.91.50 9614.20.80
0804.50.80 2008.99.28 4421.90.10 8213.00.60
Section B. Modifications to general note 4 of the HTS. (1). General note 4(a) is modified by deleting “Guinea Bissau” and “Yemen Arab Republic (Sanaa)” from the list of independent countries and inserting “Guinea-Bissau” and “Republic of Yemen” in lieu thereof. (2). General note 4(b) is modified by deleting “Yemen Arab Republic (Sanaa)” and inserting “Republic of Yemen” in lieu thereof. (3). General note 4(d) is modified by: (a). deleting the following HTS provisions and the countries set out opposite such provisions:
0708.10.20 Guatemala 1106.30.20 Ecuador
0708.10.40 Guatemala 1601.00.40 Brazil
0710.22.15 Guatemala 1604.16.30 Morocco
0710.29.05 Turkey 1604.30.20 Russia
0710.29.30 Dominican Republic 1605.10.05 Thailand
0710.80.50 Dominican Republic 1702.90.35 Belize
0710.80.65 Guatemala 1703.90.30 Lebanon
0710.80.93 Guatemala 1902.11.40 Thailand
0711.30.00 Turkey 2005.80.00 Thailand
0711.40.00 Sri Lanka 2007.99.40 Thailand
0714.10.20 Costa Rica 2008.19.30 Turkey
0714.20.20 Dominican Republic 2008.99.28 Turkey
0714.90.10 Costa Rica 2008.99.35 Thailand
0802.50.20 Turkey 2106.90.52 Philippines
0802.50.40 Turkey 2202.90.36 Colombia
0804.50.80 Thailand 2202.90.37 Dominican Republic
0811.90.50 Costa Rica 2207.10.30 Ecuador
0811.90.55 Guatemala 2208.90.10 Trinidad and Tobago
0813.40.10 Thailand 2309.90.70 Hungary
0813.40.80 Thailand 2401.20.57 Indonesia
111 STAT. 2792
2516.90.00 South Africa 7614.90.50 Venezuela
4104.31.20 Thailand 8107.90.00 Bulgaria
4202.22.35 Philippines 8112.91.50 Chile
4412.19.30 Russia 8213.00.60 Brazil
4412.19.40 Indonesia 8402.20.00 Colombia
4412.92.40 Indonesia 8414.90.30 Slovenia
4412.99.45 Indonesia 8450.90.40 Brazil
4421.90.10 Honduras 8483.50.40 Malaysia
4823.90.20 Philippines 8519.31.00 Malaysia
5607.30.20 Philippines 8528.12.04 Hungary
5609.00.20 Philippines 8528.21.05 Hungary
6501.00.60 Czech Republic 8528.30.10 Hungary
7002.10.20 Malaysia 8802.60.90 Russia
7109.00.00 Chile 9102.29.04 Philippines
7113.20.21 Oman 9303.90.80 Russia
7114.19.00 Chile 9401.90.15 Czech Republic
7308.20.00 Brazil 9606.29.20 Thailand
7319.20.00 Malaysia 9614.20.60 Turkey
7407.29.15 Chile 9614.20.80 Turkey
7603.10.00 Bahrain
(b). deleting the countries set out opposite the following HTS subheadings:
1701.99.05 Colombia 2910.20.00 Brazil
1701.99.10 Colombia 2915.34.00 Venezuela
2804.29.00 Ukraine 2915.35.00 Venezuela
2805.40.00 Russia 2917.14.10 Brazil
2825.30.00 South Africa 2917.37.00 Romania
2825.70.00 Chile 2933.40.08 Hungary
2840.11.00 Turkey 2938.10.00 Brazil
2843.21.00 Chile 7202.21.10 Macedonia, Former Yugoslav Republic of
2903.14.00 Brazil
2903.23.00 Brazil 7403.12.00 Peru
2907.15.10 Russia
6943 October 17, 1996 Honoring the Filipino Veterans of World War II Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6943 of October 5, 1996
Honoring the Filipino Veterans of World War II By the President of the United States of America A Proclamation

During the dark days of World War II, nearly 100,000 soldiers of the Philippine Commonwealth Army provided a ray of hope in the Pacific as they fought alongside United States and Allied forces for 4 long years to defend and reclaim the Philippine Islands from Japanese aggression. Thousands more Filipinos joined U.S. Armed Forces immediately after the war and served in occupational duty throughout the Pacific Theater. For their extraordinary sacrifices in defense of democracy and liberty, we owe them our undying gratitude.

111 STAT. 2793

Valiant Filipino soldiers fought, died, and suffered in some of the bloodiest battles of World War II, defending beleaguered Bataan and Corregidor, and thousands of Filipino prisoners of war endured the infamous Bataan Death March and years of captivity. Their many guerrilla actions slowed the Japanese takeover of the Western Pacific region and allowed U.S. forces the time to build and prepare for the allied counterattack on Japan. Filipino troops fought side-by-side with U.S. forces to secure their island nation as the strategic base from which the final effort to defeat Japan was launched.

This month, as we mark the anniversary of General MacArthur’s return to the Philippines, we acknowledge the important role Filipino soldiers played in turning back aggression, defending liberty, and preserving democracy, and we extend to them our abiding thanks.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim October 20, 1996, as a day Honoring the Filipino Veterans of World War II. I urge all Americans to recall the courage, sacrifice, and loyalty of Filipino veterans of World War II and honor them for their contributions to our freedom.

IN WITNESS WHEREOF, I have hereunto set my hand this seventeenth day of October, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6944 October 21, 1996 National Forest Products Week, 1996 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6944 of October 21, 1996
National Forest Products Week, 1996 By the President of the United States of America A Proclamation

For much of our Nation’s history, forests, like other natural resources, were considered inexhaustible. In this century, we began to recognize that forests are a precious birthright for all Americans—not only for us and for our children, but also for future generations. As part of this recognition, we observe National Forest Products Week.

Forests are an important source of fuel and building materials, and they provide many valuable jobs. They also offer us unmatched recreational environments, as well as a spiritual refuge from city life. They provide essential habitat for myriad species of plants and animals, including hundreds that are endangered or threatened. Increasingly, their trees, shrubs, herbs, fungi, and microorganisms are yielding new and wondrous medicinal products and foods. And thanks to better planning and resource management that replace harvested lands with new forests, thousands of Americans will continue to earn their livelihood from our Nation's forests, even as we protect them. Today, the same citizens who are reaping the forests’ bounty are personally and professionally involved in efforts to preserve it for future generations.

111 STAT. 2794

Government, citizens, and the forestry industry now work hand-in-hand in a new cooperative stewardship that emphasizes healthy, diverse, and sustainable forests. Using the best available science and complying with all current environmental laws, we are examining past and present forest management practices to find the best mix of resource use, conservation, and recycling that will ensure continued productivity. America must promote environmental responsibility and observe the highest possible standards of conservation to lead the way for other nations.

One of our most important tools in this endeavor is investment in forest research. Forest research is developing new wood products that extend raw material supplies, new technologies to extract and process wood products with less waste and fewer harmful byproducts, and new ways of reducing demand for forest raw materials through recycling. It is also unlocking the potential of forests to provide new products that will benefit people. With proper care, these lands can remain healthy, diverse, and resilient, capable of sustaining the lives—human and animal—that are dependent on them.

In recognition of the central role forests play in the long-term welfare of our Nation, the Congress, by Public Law 86–753 (36 U.S.C. 163), has designated the week beginning on the third Sunday in October each year as “National Forest Products Week” and has authorized and requested the President to issue a proclamation in observance of this commemoration.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim October 20 through October 26, 1996, as National Forest Products Week. I call upon the people of the United States to honor the vital role forests play in our national life and to observe this week with appropriate ceremonies and activities.

IN WITNESS WHEREOF, I have hereunto set my hand this twenty-first day of October, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6945 October 21, 1996 National Consumers Week, 1996 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6945 of October 21, 1996
National Consumers Week, 1996 By the President of the United States of America A Proclamation

This year’s theme for National Consumers Week is “service signals success.” Service is an indispensable element of success over the long term in both business and government: service that is responsive, convenient, and courteous, service that meets the expectations of consumers and taxpayers. Clever promotions and deceptive pricing may generate short-term profits in business. Promises alone may gain brief support for Government agencies and programs. But American consumers and taxpayers aren’t easily deceived. They expect quality service, and those who cannot or do not provide it will ultimately fail.

111 STAT. 2795

That is why I added the right to service to the Consumer Bill of Rights. It is why we have made the reinvention of government—requiring more responsiveness and efficiency—a keystone of my Administration. It is why I issued an Executive Order that directed all executive departments and agencies of the Federal Government to embark upon a revolution to change the way they do business and establish and implement customer service standards that match or exceed the best in the private sector. And it is why our policies continue to emphasize the paramount importance of service excellence to the success of our Nation, our economy, and our efforts to compete in the global marketplace.

The goal of service excellence is not easy to attain. Consumers must demand it, and everyone in an organization, be it a business or a government agency, must be committed to it, both in everyday interactions and in longer-term goals. Their ultimate success depends on it.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim October 20 through October 26, 1996, as National Consumers Week. I call upon government officials, industry leaders, and the people of the United States to recognize the vital relationship between our economy and our citizenry and to support the right of all Americans to excellence in products and services.

IN WITNESS WHEREOF, I have hereunto set my hand this twenty-first day of October, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6946 October 24, 1996 United Nations Day, 1996 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6946 of October 24, 1996
United Nations Day, 1996 By the President of the United States of America A Proclamation

Each year we dedicate a day to celebrate the United Nations because it represents America's commitment to an institution dedicated to the promotion of peace and freedom.

The United Nations was born at the end of World War II, as the international community sent representatives to San Francisco to sign the official charter. The world’s sovereign countries came in search of peace, freedom, tolerance, and cooperation after a period when many worried that the world had lost these ideals forever. These ideals became—and still remain—the bedrock principles of the United Nations Charter. And although the United Nations has not yet realized all its founders’ aspirations, these ideals now touch more people in more nations than ever before.

International cooperation—as exemplified by the work of the United Nations—offers the opportunity for nations to work together in addressing worldwide problems like ethnic, tribal, or interreligious dis-111 STAT. 2796putes; famine, drought, or epidemics; natural disasters, war, or refugee crises. On United Nations Day, we recognize this unique institution’s role in helping individual nations come together as a community to make life better for all people.

To be sure, as we celebrate its 51st anniversary, the U.N.’s challenges are very different from those the world faced at the close of World War II. But the challenges are real and substantial. There are, for example, still too many places in the world where failed ideologies increase the suffering of people rather than making their lives easier; where human rights and human dignity are not officially recognized; where nuclear weapons remain a threat to the world’s security; where honest and impartial observers are needed to ensure free democratic elections; and where international expertise is needed to replace ecological damage with sustainable development.

Americans are justifiably proud of the role our country played in creating the United Nations as part of a network of global institutions intended to reduce the chances of war and economic depression. We continue to recognize that, in a world of increasing interdependence, the United States’ engagement and leadership in the United Nations is as important now as it has ever been. We will also persist in our efforts to achieve the reforms necessary to ensure that the organization is prepared to meet the demands of a new era and that we as a Nation honor our commitments to our fellow members.

On this special day, as we honor and celebrate the work of the United Nations, let us renew our commitment and determination to work with our fellow members to maintain international peace and security, to strive for a higher quality of life, and to champion human rights for all peoples.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim October 24, 1996, as United Nations Day. I encourage all Americans to acquaint themselves with the activities and accomplishments of the United Nations and to observe this day with appropriate ceremonies, programs, and activities furthering the goal of international cooperation.

IN WITNESS WHEREOF, I have hereunto set my hand this twenty-fourth day of October, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6947 October 29, 1996 National Adoption Month, 1996 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6947 of October 29, 1996
National Adoption Month, 1996 By the President of the United States of America A Proclamation

Thousands of American children have never known what it is like to belong to a family—to grow up with the comfort and security that most of us take for granted. They are children whose parents, for a variety 111 STAT. 2797of reasons, are unable or unwilling to care for them. Instead, these children often find themselves drifting from home to home in foster care. They live every day without mothers or fathers to guide them, nurture them, and tell them that they are special.

Adoption is a commonsense solution that places children in permanent homes with parents who will offer them love and security. National Adoption Month is a time for all Americans to reflect on the rewards of joining children who need families with adults who seek the responsibilities and joys of parenthood. This month is an opportunity to celebrate family, especially families formed by adoptions.

Our Nation has no greater responsibility than to ensure that every child has the chance to live up to his or her God-given potential. We can help meet that challenge by identifying a permanent, loving family for every child waiting in the foster care system.

Among the approximately 86,000 children who will await adoption within the next few years are tens of thousands with special needs. Many of these, through no fault of their own, wait years for adoption. Yet when these children are accepted into loving family environments, they can bring the same joy, affection, and love to their adoptive families as other children bring.

In recent years, we have made important strides in encouraging parents to adopt. I have signed legislation to help facilitate adoptions by prohibiting discrimination based on race or ethnicity in placement decisions, increasing the recruitment of adoptive parents, and providing a tax credit to families who adopt children.

Much remains to be done, however. As a Nation, we must continue to work to remove obstacles to adoption, to recruit new adoptive families, to offer financial incentives for placements, and to provide support to parents adopting children with special needs. Nothing should stand in the way of providing every boy and girl in America the permanent, loving home each of them deserves. Children are. after all, our country’s most precious resource and our most important responsibility.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim November 1996 as National Adoption Month. I urge the people of the United States to observe this month with appropriate activities and programs and to participate in efforts to find permanent homes for waiting children.

IN WITNESS WHEREOF, I have hereunto set my hand this twenty-ninth day of October, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6948 October 29, 1996 To Modify Provisions on Upland Cotton and for Other Purposes Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6948 of October 29, 1996 111 STAT. 2798
To Modify Provisions on Upland Cotton and for Other Purposes By the President of the United States of America A Proclamation

1. (a) Presidential Proclamation 6301 of June 7, 1991. implemented import quotas for upland cotton by adding U.S. note 6 and subheadings 9903.52.01 through 9903.52.20 to subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States (“the HTS”).

(b) U.S. note 6(a) to subchapter III of chapter 99 of the HTS provides that whenever the Secretary of Agriculture (“the Secretary”) determines and announces that specified conditions relating to the price of upland cotton exist, there shall be in effect, as of the effective date of such announcement, a special import quota applicable to upland cotton purchased not later than 90 days after the effective date of the Secretary’s announcement and entered into the United States not later than 180 days after such date. U.S. note 6(a) further provides that a new 180-day quota period may be established that overlaps any existing quota period announced under paragraph (a) of the note, unless a quota period has been established under paragraph (b) of the note.

(c) Subheadings 9903.52.01 through 9903.52.20 cover entries of upland cotton under 20 consecutively numbered announcements by the Secretary pursuant to U.S. note 6(a). Thus, the 180-day effective period of a special upland cotton import quota established under a particular announcement may still be in effect when the same announcement number may be assigned with respect to a different but overlapping quota period.

(d) To avoid such overlap, and to permit the effective administration of these quotas by the U.S. Customs Service, I have decided that it is necessary and appropriate to provide six additional HTS subheadings corresponding to six additional announcements by the Secretary.

2. (a) Presidential Proclamation 6641 of December 15, 1993, implemented the North American Free Trade Agreement (“the NAFTA”) with respect to the United States and incorporated in the HTS the tariff modifications and rules of origin necessary or appropriate to carry out the NAFTA.

(b) Article 303 of the NAFTA provides for the amount of customs duties that may be claimed as drawback on goods originating outside the NAFTA region that are traded between the NAFTA Parties. Article 307.2 of the NAFTA provides that each Party shall grant temporary duty-free admission to specified goods when imported from the territory of another Party, regardless of the origin of such goods, for repair or alteration. Among the modifications to the HTS set forth in Annex II to Proclamation 6641 was a new paragraph (c) of U.S. note 1 to subchapter XIII of chapter 98 of the HTS, which was intended to give effect to the provisions of Articles 303 and 307.2 of the NAFTA insofar as they are applicable to articles to be repaired, altered, or processed that are admitted temporarily free of duty under bond. Such new paragraph (c) does not reflect clearly that the provisions of Article 307.2 of the NAFTA apply to goods imported from a NAFTA Party, regardless of their origin, for repair or alteration.

111 STAT. 2799

(c) Accordingly, I have decided that it is appropriate to modify paragraph (c) of U.S. note 1 to subchapter XIII of chapter 98 of the HTS to clarify implementation of the provisions of Article 307.2 of the NAFTA.

(d) Certain provisions set forth in Annexes to Proclamation 6641 contain technical errors in the instructions for implementing particular modifications. To clarify the intent of the modifications previously proclaimed, I have decided to correct such technical errors.

3. (a) Sections 1102(a) and (e) of the Omnibus Trade and Competitiveness Act of 1988 (“the 1988 Act”) (19 U.S.C. 2902(a) and (e)) authorize the President to enter into trade agreements and to proclaim such modification or continuance of any existing duty, such continuance of existing duty-free or excise treatment or such additional duties, as he determines to be required or appropriate to carry out any such trade agreement. In addition, section 111(a) of the Uruguay Round Agreements Act (“the URAA") (19 U.S.C. 3521(a)) authorizes the President to proclaim such other modifications of any duty, such other staged rate reduction, or such additional duties as the President determines to be necessary or appropriate to carry out Schedule XX-United States of America, annexed to the Marrakesh Protocol to the General Agreement on Tariffs and Trade 1994 (“Schedule XX”). Presidential Proclamation 6763 of December 23, 1994, implemented with respect to the United States the trade agreements resulting from the Uruguay Round of multilateral trade negotiations, including Schedule XX.

(b) Certain provisions set forth in Annexes to Proclamation 6763 contain technical errors in the instructions for implementing particular modifications. To clarify the intent of the modifications previously proclaimed, I have decided to correct such technical errors.

4. (a) Presidential Proclamation 6821 of September 12, 1995, established a tariff-rate quota on certain tobacco and eliminated tariffs on certain other tobacco by adding additional U.S. note 5 and various subheadings to chapter 24 of the HTS. Additional U.S. note 5 to chapter 24 of the HTS provides that the tariff-rate quota applies to the aggregate quantity of tobacco entered, or withdrawn from warehouse for consumption, under enumerated HTS subheadings from specified countries or areas, except that products of Canada, Israel, or Mexico are not permitted or included under such quantitative limitation. I intended that tobacco entered with claims of eligibility for the tariff treatment under any provision of chapter 98 of the HTS and tobacco entered for marketing to the ultimate consumer as hand-rolled cigarettes would not be counted toward the in-quota quantity provided for in additional U.S. note 5 of the HTS.

(b) I have decided, in order to clarify the status of such importations with respect to the tariff-rate quota, that it is appropriate to modify the provisions of additional U.S. note 5 to chapter 24 of the HTS to ensure that such goods are properly classified.

(c) Certain provisions of the HTS were modified in Proclamation 6821 to correct certain technical errors that were made in Proclamation 6763. However, an error was made in the spelling of a chemical in Annex II to Proclamation 6821, and I have decided to correct this error.

5. (a) Presidential Proclamation 6857 of December 11, 1995, implemented with respect to the United States modifications in the HTS that I determined were in conformity with the obligations of the United 111 STAT. 2800States under the International Convention on the Harmonized Commodity Description and Coding System and did not run counter to the national economic interest of the United States.

(b) Such proclamation also modified the rules of origin set out in the NAFTA in order to ensure that the tariff and certain other treatment accorded under the NAFTA would continue to be given to NAFTA originating goods.

(c) Certain provisions set forth in Annexes to Proclamation 6857 contain technical errors in the instructions for implementing particular modifications. To clarify the intent of the modifications previously proclaimed, 1 have decided to correct such technical errors.

6. Section 604 of the Trade Act of 1974, as amended (“the 1974 Act”) (19 U.S.C. 2483), authorizes the President to embody in the HTS the substance of the relevant provisions of that Act, and of other Acts affecting import treatment, and actions thereunder, including the removal, modification, continuance, or imposition of any rate of duty or other import restriction.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, acting under the authority vested in me by the Constitution and the laws of the United States, including but not limited to section 604 of the 1974 Act, sections 1102(a) and (e) and 1206(a) of the 1988 Act, sections 201 and 202 of the North American Free Trade Agreement Implementation Act (19 U.S.C. 3331 and 3332), sections 111(a) and 423 of the URAA (19 U.S.C. 3521 and 3621), and section 136(b) of the Federal Agriculture Improvement Act of 1996 (7 U.S.C. 7236) do proclaim that:

(1) Subheadings 9903.52.21 through 9903.52.26, as set forth in Annex I to this proclamation, are hereby inserted in numerical sequence in subchapter III of chapter 99 of the HTS, and shall become effective with respect to articles entered, or withdrawn from warehouse for consumption, as of the dates and under the terms that may be set forth in the Secretary’s special quota announcements pertaining to such subheadings.

(2) In order to clarify the intent of modifications previously proclaimed in certain Annexes to Proclamations 6641, 6763, 6821, and 6857, the HTS and the Annexes to such proclamations are modified as provided in Annex II to this proclamation.

(3) The modifications made by the Annexes to this proclamation shall be effective on the dates set forth in such Annexes.

(4) Any provisions of previous proclamations and Executive orders that are inconsistent with the actions and provisions of this proclamation are hereby superseded to the extent of such inconsistency.

(5) This proclamation shall be effective upon publication in the Federal Register.

IN WITNESS WHEREOF, I have hereunto set my hand this twenty-ninth day of October, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 111 STAT. 2801 Annex I Modifications to the HTS with respect to the Special Import Quota for Upland Cotton

Effective as of the date of publication of this proclamation in the Federal Register, the following new provisions are hereby inserted in numerical sequence in subchapter III of chapter 99 of the HTS, with the language inserted in the columns entitled “Heading/Subheading”, “Article Description”, and “Quota Quantity”, respectively.

The HTS is modified as provided in this annex, with bracketed matter included to assist in the understanding of proclaimed modifications.

[Notwithstanding any other:]
9903.52.21  Purchased and entered pursuant to the Secretary of Agriculture's Special Cotton Import Quota Announcement Number 21 The quantity specified in such announcement
9903.52.22  Purchased and entered pursuant to the Secretary of Agriculture's Special Cotton Import Quota Announcement Number 22 The quantity specified in such announcement
9903.52.23  Purchased and entered pursuant to the Secretary of Agriculture's Special Cotton Import Quota Announcement Number 23 The quantity specified in such announcement
9903.52.24 Purchased and entered pursuant to the Secretary of Agriculture's Special Cotton Import Quota Announcement Number 24 The quantity specified in such announcement
9903.52.25 Purchased and entered pursuant to the Secretary of Agriculture's Special Cotton Import Quota Announcement Number 25 The quantity specified in such announcement
9903.52.26 Purchased and entered pursuant to the Secretary of Agriculture's Special Cotton Import Quota Announcement Number 26 The quantity specified in such announcement
Annex II
Section A. Modifications to the HTS. (1). Effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after January 1, 1994: (a). In the additional U.S. notes to Section XI listed below, the expression “imports from Canada” is deleted wherever it appears in such note and the expression “articles the product of Canada” is inserted in lieu thereof.
additional U.S. note 3(a) additional U.S. note 4(c)
additional U.S. note 3(f) additional U.S. note 5(a)
additional U.S. note 4(a) additional U.S. note 5(c)
(b). In the additional U.S. notes to Section XI listed below, the expression “imports from Mexico” is deleted wherever it appears in such note and the expression “articles the product of Mexico” is inserted in lieu thereof.
additional U.S. note 3(b) additional U.S. note 4(b)
additional U.S. note 3(c) additional U.S. note 4(d)
additional U.S. note 3(d) additional U.S. note 5(b)
additional U.S. note 3(e) additional U.S. note 5(d)
additional U.S. note 3(g)
(c). Subdivision (c) of U.S. note 1 to subchapter XIII of chapter 98 of the HTS is modified by inserting the expression “, for processing,” after “imported into the United States”. 111 STAT. 2802 (2). Effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after January 1, 1995: (a). General note 7(d)(ii) is deleted. (b). The additional U.S. notes to the chapters listed below are modified by deleting the expression “imports from Mexico” wherever it appears and inserting the expression “articles the product of Mexico” in lieu thereof.
To chapter 4: To chapter 18:
 additional U.S. note 5  additional U.S. note 1
 additional U.S. note 6  additional U.S. note 2
 additional U.S. note 7  additional U.S. note 3
 additional U.S. note 8
 additional U.S. note 9 To chapter 19:
 additional U.S. note 10  additional U.S. note 2
 additional U.S. note 11  additional U.S. note 3
 additional U.S. note 12
 additional U.S. note 14 Additional U.S. note 5 to chapter 20
 additional U.S. note 16
 additional U.S. note 17 To chapter 21:
 additional U.S. note 18(a)  additional U.S. note 4
 additional U.S. note 19  additional U.S. note 5
 additional U.S. note 20
 additional U.S. note 21 Additional U.S. note 2 to chapter 23
 additional U.S. note 22
 additional U.S. note 23 To chapter 52:
 additional U.S. note 25  additional U.S. note 5
 additional U.S. note 6
Additional U.S. note 2(b) to chapter 12  additional U.S. note 7
 additional U.S. note 8
 additional U.S. note 9
Additional U.S. note 8 to chapter 17  additional U.S. note 10
(c). Subparagraph (b)(iv) of additional U.S. note 5 to chapter 17 is modified by deleting the expression “imports from those countries or areas” wherever it appears and inserting the expression “articles the product of those countries or areas” in lieu thereof. (d). The additional U.S. notes to chapter 52 listed below are modified by deleting the expression “imports from countries or areas” wherever it appears and inserting the expression “articles the product of countries or areas” in lieu thereof.
additional U.S. note 5
additional U.S. note 9
(e). The additional U.S. notes to chapter 52 listed below are modified by deleting the expression “Imports from countries or areas” wherever it appears and inserting the expression “Articles the product of countries or areas” in lieu thereof.
additional U.S. note 6
additional U.S. note 7
additional U.S. note 8
additional U.S. note 10
(f). The Rates of Duty 2 column for subheading 1806.20.83 is modified by deleting the rate of duty set forth in such column and inserting “62.1ȼ/kg + 10%” in lieu thereof. 111 STAT. 2803 (g). The Rates of Duty 1 Special subcolumn for subheadings 2106.90.52 and 2106.90.54 is modified by deleting the symbol “IL” from the parentheses following the expression “The rate applicable to the natural juice in heading 2009” and inserting the symbol “IL”, alphabetically, in the parentheses following the Free rate in such subcolumn. (h). The article description for subheading 2933.90.58 is modified by deleting “Clozapine;” from such description. (i). The article description for subheading 2934.90.07 is modified by deleting “(Fenoxaprop ethyl)” and inserting “(Fenoxaprop-ethyl)” in lieu thereof. (j). The article description for subheading 3808.30.05 is modified by deleting “(Fenoxapropethyl)” and inserting “(Fenoxaprop-ethyl)” in lieu thereof. (k). The article description for subheading 9906.29.21 is modified by deleting “2933.39.42” and inserting “2933.39.41” in lieu thereof. (l). The Intermediate Chemicals for Dyes Appendix to the HTS is modified by deleting the chemical name listed in Column A below and inserting in lieu thereof the chemical name listed in Column B below.
Column A Column B
Acetamide, N-(4-aminophnyl)-N-methyl- Acetamide, N-(4-aminophenyl)-N-methyl-
9,10-Anthracendione 9,10-Anthracenedione
1H-azepine, hexahydro- 1H-Azepine, hexahydro-
Banzamine, 2,6-dichloro-4-nitro- Benzamine, 2,6-dichloro-4-nitro-
Benzenamine, 2-chloro-4-nitro- Benzeneamine, 2-chloro-4-nitro-
Benzenamine, 4-chloro-2-(trifluoromethyl)- Benzeneamine, 4-chloro-2-(trifluoromethyl)-
Benzenamine, 2-methoxy- Benzeneamine, 2-methoxy-
Benzenamine, 4-methoxy- Benzeneamine, 4-methoxy-
Benzenamine, 2-methoxy-4-nitro- Benzeneamine, 2-methoxy-4-nitro-
Benzenamine, N-methyl- Benzeneamine, N-methyl-
Benzenamine, 4-(6-methyl-2-benzothiazolyl)- Benzeneamine, 4-(6-methyl-2-benzothiazolyl)-
Benzenamine, 3-nitro- Benzeneamine, 3-nitro-
Benzenamine, 2-(triflouromethyl)- Benzeneamine, 2-(triflouromethyl)-
1,4-Benzene disulfonic acid, 2-amino- 1,4-Benzenedisulfonic acid, 2-amino-
Benzene sulfonic acid, 4-chloro-3-(4,5- Benzenesulfonic acid, 4-chloro-3-(4,5-
dihydro-3-methyl-5-oxo-1H-pyrazol-1-yl)- dihydro-3-methyl-5-oxo-1H-pyrazol-1-yl)-
[1,1′-Biphenyl]-4,4′diamine, 3,3′dimethoxy-, [1,1′-Biphenyl]-4,4′-diamine, 3,3′-dimethoxy-,
dihydrochloride dihydrochloride
Butanedioic, acetyl-, dimethyl ester Butanedioic acid, acetyl-, dimethyl ester
2-Naphathalenesulfonic acid, 8-amino-, 2-Naphathalenesulfonic acid, 8-amino-,
monososium salt monosodium salt
1,5-Naphthalene disulfonic acid, 2-amino- 1,5-Naphthalenedisulfonic acid, 2-amino-
1,3-Naphthalene disulfonic acid, 4-amino-5- 1,3-Naphthalenedisulfonic acid, 4-amino-5-
hydroxy- hydroxy-
2-Naphthalenesuflfonic acid, 6-amino-7-hydroxy- 2-Naphthalenesulfonic acid, 6-amino-7-hydroxy-
2-Naphthalenesulfonic acid, 7-(acetylamino-4- 2-Naphthalenesulfonic acid, 7-(acetylamino)-4-
hydroxy- hydroxy-
1,3--Naphthalenesulfonic acid, 7-hydroxy-, 1,3-Naphthalenesulfonic acid, 7-hydroxy-,
potassium salt potassium salt
1,3,6-Naphthalene trisulfonic acid, 7-amino- 1,3,6-Naphthalenetrisulfonic acid, 7-amino-
1,3,6 Naphthalene trisulfonic acid, 7-amino-, 1,3,6 Naphthalenetrisulfonic acid, 7-amino-,
diammonium salt diammonium salt
1,3,6 Naphthalene trisulfonic acid, 7-amino-, 1,3,6 Naphthalenetrisulfonic acid, 7-amino-,
disodium salt disodium salt
1,3,6 Naphthalene trisulfonic acid, 7-amino-, 1,3,6 Naphthalenetrisulfonic acid, 7-amino-,
sodium salt sodium salt
1-Naphthalensulfonic acid, 4-hydroxy-, 1-Naphthalenesulfonic acid, 4-hydroxy-,
monopotassium salt monopotassium salt
1-Naphthalsulfonic acid, 8-(phenylamino)-, 1-Naphthalenesulfonic acid, 8-(phenylamino)-,
monosodium salt monosodium salt
Spiro[isobenzofuran-1(3H), 9′-[9H]xanthen]-3-one, Spiro[isobenzofuran-1(3H),9′[9H]-xanthen]-3-one,
3′,6′-bis(ethylamino)-2′7′-di- 3′,6′-bis(ethylamino)-2′,7′-dimethyl-
111 STAT. 2804 (3). Effective with respect to articles entered, or withdrawn from warehouse, for consumption on or after September 13, 1995:
Additional U.S. note 5 to chapter 24 is modified as follows: (a). paragraph (b) of such note is deleted and the following new paragraph (b) is inserted in lieu thereof: “(b) The subheadings enumerated in subdivision (a) of this note shall not include— (i) products of Canada, Israel or Mexico, or (ii) any quantities of tobacco for which duty treatment is claimed under any provision of chapter 98 of this schedule, and no such articles shall be classifiable in such subheadings." (b). a new paragraph (e) is added to such note as follows: “(e) For purposes of this chapter, imported tobaccos that are used to prepare cigarette tobaccos for marketing to the ultimate consumer to make hand-rolled cigarettes, are considered to be tobacco to be used in products other than cigarettes." 111 STAT. 2805 (4). Effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after January 1, 1996: (a). Modifications to the tariff classification rules (“TCRs”) of subdivision (t) of general note 12: (i). TCR 9(B)(1) for chapter 29 is modified by deleting from such rule “60 per cent” and inserting “60 percent” in lieu thereof. (ii). TCR 9(B)(2) for chapter 29 is modified by deleting from such rule “50 per cent” and inserting “50 percent” in lieu thereof. (iii). TCR 195 for chapter 84 is modified by deleting from such rule “item 8471.60.52 or” and inserting “items 8471.60.52 or” in lieu thereof. (iv). Subparagraph (b) of chapter rule 5 for chapter 85 is modified by deleting from such rule “cathode-ray picture tube” and inserting “cathode-ray television picture tube” in lieu thereof. (v). TCR 85 for chapter 85 is modified by deleting from such rule “except from tariff items 7011.20.10 and 8540.91.15.” and inserting in lieu thereof the following: “more than one of the following: (A) tariff item 7011.20.10, (B) tariff item 8540.91.15." (vi). The tariff item rule immediately following TCR 85 is modified by deleting from such rule “except from tariff items 7011.20.10 or 8540.91.15.” and inserting in lieu thereof the following: “more than one of the following: (A) tariff item 7011.20.10, (B) tariff item 8540.91.15." (vii). TCR 86 for chapter 85 is modified by: (A). deleting from such rule “items 8540.12.10, 8540.12.50 or 8540.12.99” and inserting “items 8540.12.10 or 8540.12.50” in lieu thereof. (B). deleting from such rule “from tariff items 7011.20.10 or 8540.91.15.” and inserting in lieu thereof the following: “more than one of the following: (A) tariff item 7011.20.10, (B) tariff item 8540.91.15." (viii). TCRs 92A(A) and 92K(A) for chapter 85 are modified by deleting “subparagraph (b)” and inserting “subparagraph (B)” in lieu thereof. (ix). TCR 92C, the tariff item rule immediately following TCR 92C, and TCR 92D for chapter 85 are all modified by deleting from such rules “from tariff items 7011.20.10 or 8540.91.15.” and inserting in lieu thereof the following: “more than one of the following: (A) tariff item 7011.20.10, (B) tariff item 8540.91.15." (x). TCR 92L for chapter 85 is modified by deleting from such rule “tariff items 7011.20.10 or 8540.91.15.” and inserting in lieu thereof the following: “more than one of the following: (A) tariff item 7011.20.10, (B) tariff item 8540.91.15." (xi). TCR 92D to chapter 85 is modified by inserting immediately preceding such TCR the following tariff item rule:
“Tariff item rule: The following rule applies to a good of tariff items 8528.21.41 or 8528.21.42 incorporating a picture tube of tariff items 8540.12.10 or 8540.12.50 that incorporates a glass panel referred to in subparagraph (b) of note 5 to chapter 85 and a glass cone provided for in tariff item 7011.20.10."
 111 STAT. 2806 (b). Subheadings 4412.13.30 and 4412.13.55 are superseded by the following, with bracketed matter included to assist in the understanding of the proclaimed modification:
[Plywood,:]
 [Plywood:]
  [With at least one outer ply:]
   [Not surface covered,:]
    "Other:
4412.13.40      With at least one outer ply of the following tropical woods: Dark Red Meranti, Light Red Meranti, White Lauan, Sipo, Limba, Okoumé, Obeche, Acajou d’Afrique, Sapelli, Virola, Mahogany, Palissandre de Para, Palissandre de Rio or Palissandre de Rose 8% Free (A*,CA,E, IL,J,MX) 40%
4412.13.50      Other 8% Free (A*,CA,E, IL,J,MX) 40%
   Other:
4412.13.60     With at least one outer ply of the following tropical woods: Dark Red Meranti, Light Red Meranti, White Lauan, Sipo, Limba, Okoumé, Obeche, Acajou d’Afrique, Sapelli, Virola, Mahogany, Palissandre de Para, Palissandre de Rio or Palissandre de Rose 8% Free (A*,CA,E, IL,J,MX) 40%
4412.13.90     Other 8% Free (A*,CA,E, IL,J,MX) 40%
Conforming change: General note 4(d) to the HTS is modified by deleting “4412.13.30 Brazil; Indonesia” and “4412.13.55 Brazil; Indonesia” and inserting “4412.13.40 Indonesia”, “4412.13.50 Brazil; Indonesia”, “4412.13.60 Indonesia” and “4412.13.90 Brazil; Indonesia” in lieu thereof. (c). The text immediately superior to subheading 4412.22.10 is modified by deleting “clear surface covered” and inserting “surface covered” in lieu thereof. (d). The Rates of Duty 2 column for subheading 6115.93.90 is modified by deleting the rate of duty set forth in such column and inserting “72%” in lieu thereof. (e). Additional U.S. note 2 to chapter 84 is modified by deleting the phrase “printers of subheading 8471.92” and inserting the phrase “printers of subheading 8471.60” in lieu thereof. (f). The article description for subheading 8529.90.53 is modified by deleting “subheadings 8528.10.61, 8528.10.63, 8528.10.67 and 8528.10.69” and inserting “subheadings 8528.12.62, 8528.12.64, 8528.12.68, 8528.12.72, 8528.21.55, 8528.21.60, 8528.21.65, 8528.21.70, 8528.30.62, 8528.30.64, 8528.30.66 and 8528.30.68” in lieu thereof. (g). Subheading 9905.15.10 is deleted. 111 STAT. 2807 (5). Effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after July 15, 1996:

Subchapter IV of chapter 99 of the HTS is modified by:

(a). deleting subheadings 9904.02.18 through 9904.02.26, inclusive, and the superior text “Other than processed and the product of the European Community (Austria, Belgium, Denmark, Finland, France, the Federal Republic of Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden, and the United Kingdom):” immediately prior to subheading 9904.02.18. (b). deleting the superior text “Other:” immediately prior to subheading 9904.02.27 and aligning the indent level for the article descriptions of subheadings 9904.02.27 through 9904.02.35, inclusive, with the article description for subheading 9904.02.17. (c). deleting subheading 9904.02.36 and the superior text “Boneless (other than processed), provided for in subheadings 0201.30.80 or 0202.30.80 and the product of the European Community (Austria, Belgium, Denmark, Finland, France, the Federal Republic of Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden, and the United Kingdom):” and “If entered during the effective period of safeguards based upon quantity announced by the Secretary of Agriculture:” preceding such subheading. (d). deleting the article description for subheading 9904.02.37, and inserting “If entered during the effective period of safeguards based upon quantity announced by the Secretary of Agriculture” aligned at the same level of indent for the article description for subheading 9904.04.39. (6).

Effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after November 1, 1996

:

General note 4(d) to the HTS is modified by deleting “3604.10.00 India” and inserting “3604.10.10 India" and “3604.10.90 India” in lieu thereof.

 (7). Effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after January 1, 1997: (a). The article description of subheading 9905.73.07 is modified by deleting “7306.60.10 or” from such description. (b). Subheading 9905.73.16 is deleted. (8). For the following subheadings, the Rates of Duty 1 Special subcolumn is modified on January 1 of each year in the table below by deleting the existing rate of duty preceding the symbol “CA" in parentheses and inserting in lieu thereof the rate of duty specified in the table below for such year.
HTS Subheading 1995 1996 1997 1998
0406.90.59 4.50% 3% 1.50% Free
2106.90.48 2.7¢/liter 1.8¢/liter 0.9¢/liter Free
2106.90.58 1.80% 1.20% 0.60% Free
111 STAT. 2808 (9) For subheadings 0406.90.59 and 5402,41.90, the Rates of Duty 1 Special subcolumn is modified on January 1 of each year in the table below by deleting the existing rate of duty preceding the symbol “MX" in parentheses and inserting in lieu thereof the rate of duty specified in the table below for such year.
HTS Subheading 1995 1996 1997 1998 1999 2000 2001 2002 2003
0406.90.59 12.00% 11% 9.00% 7.50% 6% 4.50% 3% 1.50% Free
5402.41.90 7.20% 5.40% 3.60% 1.80% Free Free Free Free Free
Section B. Modifications to Sections A, D and F of the Annex to Proclamation 6763 of December 23, 1994. (1). Modifications to Section A: (a). Item (144)(a) in such section is modified by deleting from the article description for subheading 2933.90.06 the article “α-Butyl-α-(4-chlorophenyl)-1H-1,2,4-triazole-1-propanenitile (Myclobutanil); and” and inserting “α-Butyl-α-(4-chlorophenyl)-1H-1,2,4-triazole-1-propanenitrile (Myclobutanil); and” in lieu thereof. (b). Item (338)(a) in such section is modified by: (i). from the Rates of Duty 1 General subcolumn for subheading 9106.90.75 deleting the rate “3.9% on the apparatus + 5.3% on the battery” and inserting “3.9%” in lieu thereof. (ii). from the Rates of Duty 1 Special subcolumn for subheading 9106.90.75 deleting the rate “1.1% on the apparatus + 1.5% on the battery (CA)” and inserting “1.1% (GA)” in lieu thereof. (2). Modifications to Section D: (a). For subheading 2009.30.10 in such section, the years 1995 through 2004, inclusive, are modified by deleting “/liter” and inserting “/kg” in lieu thereof. (b). For subheading 2206.00.30 in such section, the years 1995 through 2004, inclusive, are modified by adding the expression “on ethyl alcohol content” after “pf. liter”. (3). Modifications to Section F: (a). For subheadings 2103.90.72, 2103.90.74, 2103.90.80 and 2103.90.90 in such section, the year 1997 is modified by deleting “1.7%” and inserting “0.7%” in lieu thereof. (b). For subheadings 6217.10.10, 6217.10.90, 6217.90.10 and 6217.90.90 in such section, the years 1996 and 1997 are modified by deleting “2.6%” and “1.3%”, respectively, and inserting “3.1%” and “1.5%” in lieu thereof. 111 STAT. 2809 (c). For subheading 9106.90.55 in such section, the years 1996 and 1997 are modified by deleting “0.7% on the apparatus 1% on the battery” and “0.3% on the apparatus 0.5% on the battery”, respectively, and inserting “0.7% on the apparatus + 1% on the battery” and “0.3% on the apparatus + 0.5% on the battery” in lieu thereof. (d). For subheading 9106.90.75 in such section, the years 1996 and 1997 are modified by deleting “0.7% on the apparatus 1% on the battery” and “0.3% on the apparatus 0.5% on the battery”, respectively, and inserting “0.7%” and “0.3%” in lieu thereof.
Section C. Modification to Section B of Annex II to Proclamation 6821 of September 12, 1995. Item (7) in section B is modified by deleting such item and inserting the following new item which should read as follows: “(7) The article description for subheading 2934.90.70 is modified by deleting “2-Methyl-4-isothiazoline-3-one;” from such description and by inserting in alphabetical sequence “2-Methyl-4-isothiazolin-3-one;” in the article description for subheading 2934.10.70."
Section D. Modification to Annex II and III to Proclamation 6857 of December 11, 1995. (1) Item 273 of Annex II to such proclamation is modified by deleting “hot-working” from the article description of the superior text immediately preceding subheading 8475.21.00 and inserting “hot working” in lieu thereof. (2) Item (2) in section B of Annex III to such proclamation is modified by deleting “3283.19.20” appearing after “3823.12.00” and inserting “3823.19.20” in lieu thereof.
 6949 October 29, 1996 National American Indian Heritage Month, 1996 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6949 of October 29, 1996
National American Indian Heritage Month, 1996 By the President of the United States of America A Proclamation

Throughout our history, American Indian and Alaska Native peoples have been an integral part of the American character. Against the odds, America's first peoples have endured, and they remain a vital cultural, political, social, and moral presence. Tribal America has brought to this great country certain values and ideas that have become ingrained in the American spirit: the knowledge that humans can thrive and prosper without destroying the natural environment; the understanding that people from very different backgrounds, cultures, religions, and traditions can come together to build a great country; and the awareness that diversity can be a source of strength rather than division.

As we celebrate American Indian Heritage Month this year, we take note of the injustices that have been suffered by American Indian people. Even today, few enjoy the full bounty of America’s prosperity. But 111 STAT. 2810even as we look to the past, we must also look to the future. Along with other Americans, American Indians and Alaska Natives will face new challenges in the coming century. We can ill afford to leave any of our people behind. Tribal America must figure as prominently in our future as it has in our past.

Let us rededicate ourselves to the principle that all Americans have the tools to make the most of their God-given potential. For Indian tribes and tribal members, this means that the authority of tribal governments must be accorded the respect and support to which they are entitled under the law. It means that American Indian children and youth must be provided a solid education and the opportunity to go on to college. It means that more must be done to stimulate tribal economies, create jobs, and increase economic opportunities.

Our bridge to the 21st century will rest upon the foundation we build today. We must teach our children about our past—both the good and the bad—so that they may learn from our successes and mistakes. We must provide our children with the knowledge and skills to permit them to surpass our own achievements and create a stronger, more united American community. We must provide them greater opportunity. It was the Iroquois who taught that in every deliberation we should consider the impact of our decisions on the next 7 generations. In recognition of the important contributions of American Indian and Alaska Native peoples to our country and in light of the special legal relationship between the tribes and the Government of the United States, and obligations pursuant thereto, we celebrate National American Indian Heritage Month.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim November 1996 as National American Indian Heritage Month. I urge all Americans, as well as their elected representatives at the Federal, State, local, and tribal levels, to observe this month with appropriate programs, ceremonies, and activities.

IN WITNESS WHEREOF, I have hereunto set my hand this twenty-ninth day of October, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6950 October 31, 1996 Veterans Day, 1996 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6950 of October 31, 1996
Veterans Day, 1996 By the President of the United States of America A Proclamation

This Veterans Day, Americans enjoy the fruits of peace, freedom, and prosperity in a world where too many must still struggle to live their lives free from conflict, violence, and repression.

As leaders in the fight for liberty, we have sought to advance the cause of freedom and democracy to people all over the world. The credit for 111 STAT. 2811our own freedom, as well as our continued security, belongs overwhelmingly to the men and women who have served in our Nation’s Armed Forces—our veterans. Had they not been there yesterday, were they not with us today, our world would be far different.

Today we salute their service, honor their sacrifice, thank them for supporting this Nation in every hour of need. And we acknowledge that freedom’s cost continues long after the guns fall silent. Many of our veterans bear the disabilities and scars of military service. The families of others—who never returned from their service—live always with a profound sense of loss. It is our duty to remember what our veterans have done and to uphold our commitments to them and their families.

As we mark the past achievements of our veterans, let us remember that they are a vital part of our present and future. Of the 40 million who have served in America’s military since the Revolutionary War, 26.5 million are with us today—not distant historical footnotes, but as close as a father or mother, brother or sister, grandfather or grandmother, friend or neighbor.

Their tradition of service extends beyond the battlefield and the barracks. Most veterans in civilian life continue devoting their energies to the service of their country and communities. They are civic-minded role models who challenge and inspire our young people. They are volunteers who work for neighbors in need. They represent what is best in the American spirit.

That is why we must help them make the transition from military to civilian careers and empower them with the opportunities to use their training, discipline, and motivation in good and rewarding jobs. We owe them as well a guarantee that we will continue to defend the American ideals for which they have served and sacrificed. As the strongest force for peace and freedom in the world, we recognize our responsibility to maintain a military capability second to none.

In respect and recognition of the contributions our service men and women have made in defense of America and to advance the cause of peace, the Congress has provided (5 U.S.C. 6103(a)) that November 11 of each year shall be set aside as a legal public holiday to recognize America’s veterans.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim Monday, November 11, 1996, as Veterans Day. I urge all Americans to recognize the valor and sacrifice of our veterans through appropriate public ceremonies and private prayers. I call upon Federal, State, and local officials to display the flag of the United States and to encourage and participate in patriotic activities in their communities.

IN WITNESS WHEREOF, I have hereunto set my hand this thirty-first day of October, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6951 November 7, 1996 To Extend Nondiscriminatory Treatment (Most-Favored-Nation Treatment) to the Products of Romania Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6951 of November 7, 1996 111 STAT. 2812
To Extend Nondiscriminatory Treatment (Most-Favored-Nation Treatment) to the Products of Romania By the President of the United States of America A Proclamation

Pursuant to section 2 of Public Law 104–171, and having due regard for the findings of the Congress in section 1 of said Law, I hereby determine that Title IV of the Trade Act of 1974 (19 U.S.C. 2431-2441), should no longer apply to Romania.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, acting under the authority vested in me by the Constitution and the laws of the United States, including but not limited to section 2 of Public Law 104–171, do proclaim that:

(1) Nondiscriminatory treatment (most-favored-nation treatment) shall be extended to the products of Romania, which will no longer be subject to Title IV of the Trade Act of 1974.

(2) Any provisions of previous proclamations and Executive orders inconsistent with the provisions of this proclamation are hereby superseded to the extent of such inconsistency.

(3) The extension of nondiscriminatory treatment to the products of Romania shall be effective as of the date of publication of this proclamation in the Federal Register.

IN WITNESS WHEREOF, I have hereunto set my hand this seventh day of November, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6952 November 8, 1996 National Farm-City Week, 1996 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6952 of November 8, 1996
National Farm-City Week, 1996 By the President of the United States of America A Proclamation

In 1840 Daniel Webster said, “when tillage begins, other arts follow. The farmers therefore are the founders of human civilization.” We pause each year at this time to express our gratitude to American farmers and the millions of Americans working in agriculture-related jobs, and we recognize the importance of agriculture and the essential role that farmers play in our national life. Intertwined with our national history, culture, and economy, American farms continuously sustain us and people around the world with rich produce and crops. Thanks to the professionalism and care of American farmers, we enjoy an abundance of quality and affordable food.

American agriculture is among our Nation’s most vital industries, alone generating more than 15 percent of our gross domestic product. Bolstering our economy with a bounty of healthful foods, American ag-111 STAT. 2813riculture supports more than 21 million jobs, and agriculture-related industries continue to expand, producing good, high-paying jobs and creating $1 trillion for the American economy each year.

The success of American agriculture is a testament to the benefits of farm-city partnerships that stretch all the way from the farmer to the consumer, with thousands of participants in between—researchers, extension agents, scientists, agribusiness companies, shippers, inspectors, processors, manufacturers, marketers and retailers, all helping to guarantee Americans a safe, abundant food supply. For more than 40 years, Americans have observed National Farm-City Week in celebration of these partnerships.

During National Farm-City Week, we celebrate Thanksgiving when Americans will gather around the dinner table to count our Nation’s many blessings. Among them is America’s agricultural richness and the collaboration between rural and urban communities that helps guarantee our rich quality of life.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim November 22 through November 28, 1996, as National Farm-City Week. I call upon all Americans, in rural and urban communities alike, to join in recognizing the accomplishments of our farmers and all the hardworking individuals who cooperate to produce an abundance of affordable, quality agricultural goods that strengthen and enrich our country.

IN WITNESS WHEREOF, I have hereunto set my hand this eighth day of November, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6953 November 11, 1996 National Family Caregivers Week, 1996 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6953 of November 11, 1996
National Family Caregivers Week, 1996 By the President of the United States of America A Proclamation

At this special time each year, we give thanks for our many blessings. Among those blessings are the quiet but heartfelt contributions made on a daily basis by our Nation’s caregivers, particularly on behalf of the elderly in our society.

The true value of the role that caregivers play in the lives of America’s families is immeasurable. Providing physical comfort and emotional reassurance, these strong and selfless people care for loved ones who can no longer care for themselves. The vast majority of caregivers are family members—often older relatives—and women provide most of the informal care that their families receive. Of the millions of people who provide informal care to older adults, over half are spouses or children. While many caregivers experience stress and frustration in fulfilling their caregiving responsibilities, and many sacrifice personal opportunities to care for a loved one, most regard the challenges of caregiving as a rewarding and satisfying experience.

111 STAT. 2814

By the year 2030, one in five Americans will be at least 65 years old, compared to one in eight today. In addition, the number of older Americans will double, from the present 34 million to about 69 million. At the same time that our population is aging, more older persons are suffering from chronic illnesses and face potentially disabling conditions. Moreover, individuals with lifelong disabilities are living longer and may require assistance in caring for themselves as they age. The overwhelming majority of older Americans would prefer to remain in their homes while growing older—even when no coordinated system of home- and community-based care is available. As a result, more Americans are becoming involved in caring for family members who want to age with dignity and respect.

This week, as we celebrate the contributions of caregivers to their families and communities, let us recognize the challenges these generous individuals must confront on a daily basis—challenges that include fulfilling multiple and often conflicting roles of caregiving for their aging relatives, caring for young children, and working outside their homes. Let us promote community programs and encourage workplace policies that help to lighten or share the burden of their caregiving responsibilities. And let us, as a Nation, recognize and commend the vital role they play in ensuring that older Americans age with grace, dignity, and a precious measure of independence.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim November 24 through November 30, 1996, as National Family Caregivers Week. I call upon Government officials, businesses, communities, volunteers, educators, and all the people of the United States to acknowledge the contributions made by caregivers this week and throughout the year.

IN WITNESS WHEREOF, I have hereunto set my hand this eleventh day of November, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6954 November 11, 1996 Thanksgiving Day, 1996 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6954 of November 11, 1996
Thanksgiving Day, 1996 By the President of the United States of America A Proclamation

America’s oldest tradition, Thanksgiving is also a reaffirmation of our most deeply held values; a public recognition that, in the words of Thomas Jefferson, “God who gave us life gave us liberty.” In gratitude for God’s gift of freedom and “for all the great and various favors which he hath been pleased to confer upon us,” George Washington made Thanksgiving his first proclamation for the new Nation, and it is one we are privileged to renew each year.

Much has changed for America in the two centuries since that first Thanksgiving proclamation. Generations of hardworking men and women have cultivated our soil and worked the land, and today Amer-111 STAT. 2815ica’s bounty helps feed the world. The promise of freedom that sustained our founders through the hardships of the Revolution and the first challenging days of nationhood has become a reality for millions of immigrants who left their homelands for a new life on these shores. And the light of that freedom now shines brightly in many nations that once lived in the shadows of tyranny and oppression.

But across the years, we still share an unbroken bond with the men and women who first proclaimed Thanksgiving in our land. Americans today still cherish the fresh air of freedom, in which we can raise our families and worship God as we choose without fear of persecution. We still rejoice in this great land and in the civil and religious liberty it offers to all. And we still—and always—raise our voices in prayer to God, thanking Him in humility for the countless blessings He has bestowed on our Nation and our people.

Let us now, this Thanksgiving Day, reawaken ourselves and our neighbors and our communities to the genius of our founders in daring to build the world’s first constitutional democracy on the foundation of trust and thanks to God. Out of our right and proper rejoicing on Thanksgiving Day, let us give our own thanks to God and reaffirm our love of family, neighbor, and community. Each of us can be an instrument of blessing to those we touch this Thanksgiving Day—and every day of the year.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim Thursday, November 28, 1996, as a National Day of Thanksgiving. I encourage all the people of the United States to assemble in their homes, places of worship, or community centers to share the spirit of goodwill and prayer; to express heartfelt gratitude for the blessings of life; and to reach out in friendship to our brothers and sisters in the larger family of mankind.

IN WITNESS WHEREOF, I have hereunto set my hand this eleventh day of November, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6955 November 13, 1996 To Provide Duty-Free Treatment to Products of the West Bank and the Gaza Strip and Qualifying Industrial Zones Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6955 of November 13, 1996
To Provide Duty-Free Treatment to Products of the West Bank and the Gaza Strip and Qualifying Industrial Zones By the President of the United States of America A Proclamation

1. Section 9(a) of the United States-Israel Free Trade Area Implementation Act of 1985, as amended (the “Act”) (19 U.S.C. 2112 note), authorizes the President to proclaim elimination or modification of any existing duty under certain conditions as the President determines is nec-111 STAT. 2816essary to exempt any article of the West Bank or Gaza Strip or a qualifying industrial zone from duty.

2. Section 9(c) of the Act authorizes the President to proclaim that articles of Israel may be treated as though they were articles directly shipped from Israel for the purposes of the U.S.-Israel Free Trade Agreement (the “Agreement”) even if shipped to the United States from the West Bank, the Gaza Strip, or a qualifying industrial zone, if the articles otherwise meet the requirements of the Agreement.

3. Section 9(d) of the Act authorizes the President to proclaim that the cost or value of materials produced in the West Bank, the Gaza Strip, or a qualifying industrial zone may be included in the cost or value of materials produced in Israel under section 1(c)(i) of Annex 3 of the Agreement, and the direct costs of processing operations performed in the West Bank, the Gaza Strip, or a qualifying industrial zone may be included in the direct costs of processing operations performed in Israel under section 1(c)(ii) of Annex 3 of the Agreement.

4. Section 9(e) of the Act authorizes the President to specify areas that constitute qualifying industrial zones for purposes of the Act.

5. Pursuant to section 9(a) of the Act, I have determined that the Harmonized Tariff Schedule of the United States (HTS) should be modified to provide duty-free entry to qualifying articles that are the product of the West Bank or Gaza Strip or a qualifying industrial zone and are entered in accordance with the provisions of section 9 of the Act.

6. I have decided that articles of Israel may be treated as though they were articles directly shipped from Israel for the purposes of the Agreement even if shipped to the United States from the West Bank, the Gaza Strip, or a qualifying industrial zone, if the articles otherwise meet the requirements of the Agreement.

7. I have decided that the cost or value of materials produced in the West Bank, the Gaza Strip, or a qualifying industrial zone may be included in the cost or value of materials produced in Israel under section 1(c)(i) of Annex 3 of the Agreement, and the direct costs of processing operations performed in the West Bank, the Gaza Strip, or a qualifying industrial zone may be included in the direct costs of processing operations performed in Israel under section 1(c)(ii) of Annex 3 of the Agreement.

8. Section 604 of the Trade Act of 1974 (19 U.S.C. 2483) authorizes the President to embody in the HTS the substance of the provisions of that Act, and of other acts affecting import treatment, and actions thereunder.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, acting under the authority vested in me by the Constitution and the laws of the United States, including but not limited to section 301 of title 3, United States Code, section 9 of the Act (19 U.S.C. 2112 note), and section 604 of the Trade Act of 1974 (19 U.S.C. 2483), do proclaim that:

(1) In order to provide the tariff treatment being accorded under the Act, the HTS is modified as set forth in the Annex to this proclamation.

111 STAT. 2817

(2) I delegate to the United States Trade Representative the powers granted to me in section 9(e) of the Act to specify through notice in the Federal Register areas constituting qualifying industrial zones.

(3) The modifications to the HTS made by the Annex shall be effective with respect to goods entered, or withdrawn from warehouse for consumption, on and after the third day after the date of publication of this proclamation in the Federal Register.

(4) All provisions of previous proclamations and Executive orders that are inconsistent with the actions taken in this proclamation are superseded to the extent of such inconsistency.

IN WITNESS WHEREOF, I have hereunto set my hand this thirteenth day of November, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 111 STAT. 2818 ANNEX MODIFICATIONS TO GENERAL NOTES 3 AND 8 TOTHE HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES
Effective with respect to goods entered, or withdrawn from warehouse for consumption, on and after the third day after the date of publication of this proclamation in the Federal Register: 1. General note 3(a)(1) is modified by deleting “subparagraph (iv)” and by inserting in lieu thereof “subparagraphs (iv) and (v)”. 2. The following new provisions are inserted in numerical sequence in general note 3(a) to the Harmonized Tariff Schedule of the United States: “(v) Products of the West Bank, the Gaza Strip or a qualifying industrial zone. (A) Subject to the provisions of this paragraph, articles which are imported directly from the West Bank, the Gaza Strip, a qualifying industrial zone as defined in subdivision (G) of this subparagraph or Israel and are— (1) wholly the growth, product or manufacture of the West Bank, the Gaza Strip or a qualifying industrial zone; or (2) new or different articles of commerce that have been grown, produced or manufactured in the West Bank, the Gaza Strip or a qualifying industrial zone, and the sum of— (I) the cost or value of the materials produced in the West Bank, the Gaza Strip, a qualifying industrial zone or Israel, plus (II) the direct costs of processing operations (not including simple combining or packaging operations, and not including mere dilution with water or with another substance that does not materially alter the characteristics of such articles) performed in the West Bank, the Gaza Strip, a qualifying industrial zone or Israel, is not less than 35 percent of the appraised value of such articles; shall be eligible for duty-free entry into the customs territory of the United States. For purposes of subdivision (A)(2), materials which are used in the production of articles in the West Bank, the Gaza Strip or a qualifying industrial zone, and which are the product of the United States, may be counted in an amount up to 15 percent of the appraised value of such articles. (B) Articles are “imported directly“ for the purposes of this paragraph if— (1) they are shipped directly from the West Bank, the Gaza Strip, a qualifying industrial zone or Israel into the United States without passing through the territory of any intermediate country; or (2) they are shipped through the territory of an intermediate country, and the articles in the shipment do not enter into the commerce of any intermediate country and the invoices, bills of lading and other shipping documents specify the United States as the final destination; or (3) they are shipped through an intermediate country and the invoices and other documents do not specify the United States as the final destination, and the articles— (I) remain under the control of the customs authority in an intermediate country; (II) do not enter into the commerce of an intermediate country except for the purpose of a sale other than at retail, but only if the articles are imported as a result of the original commercial transactions between the importer and the producer or the producer's sales agent; and (III) have not been subjected to operations other than loading, unloading or other activities necessary to preserve the articles in good condition. (C) The term “new or different articles of commerce" means that articles must have been substantially transformed in the West Bank, the Gaza Strip or a qualifying industrial zone into articles with a new name, character or use. (D) (1) For the purposes of subdivision (A)(2)(I), the cost or value or materials produced in the West Bank, the Gaza Strip or a qualifying industrial zone includes— (I) the manufacturer's actual cost for the materials; (II) when not included in the manufacturer's actual cost for the materials, the freight, insurance, packing and all other costs incurred in transporting the materials to the manufacturer's plant; 111 STAT. 2819 (III) the actual cost of waste or spoilage, less the value of recoverable scrap; and (IV) taxes or duties imposed on the materials by the West Bank, the Gaza Strip or a qualifying industrial zone, if such taxes are not remitted on exportation. (2) If a material is provided to the manufacturer without charge, or at less than fair market value, its cost or value shall be determined by computing the sum of— (I) all expenses incurred in the growth, production or manufacturer of the material, including general expenses; (II) an amount for profit; and (III) freight, insurance, packing and all other costs incurred in transporting the material to the manufacturer's plant. (3) If the information necessary to compute the cost or value of a material is not available, the Customs Service may ascertain or estimate the value thereof using all reasonable methods. (E) (1) For purposes of this paragraph, the “direct costs of processing operations performed in the West Bank, the Gaza Strip or a qualifying industrial zone" with respect to an article are those costs either directly incurred in, or which can be reasonably allocated to, the growth, production, manufacture or assembly of that article. Such costs include, but are not limited to, the following to the extent that they are includible in the appraised value of articles imported into the United States: (I) All actual labor costs involved in the growth, production, manufacture or assembly of the article, including fringe benefits, on-the-job training and costs of engineering, supervisory, quality control and similar personnel; (II) Dies, molds, tooling and depreciation on machinery and equipment which are allocable to such articles; (III) Research, development, design, engineering and blueprint costs insofar as they are allocable to such articles; and (IV) Costs of inspecting and testing such articles. (2) Those items that are not included as direct costs of processing operations with respect to an article are those which are not directly attributable to the article or are not costs of manufacturing the article. Such items include, but are not limited to— (I) profit; and (II) general expenses of doing business which are either not allocable to the article or are not related to the growth, production, manufacture or assembly of the article, such as administrative salaries, casualty and liability insurance, advertising and salesmen's salaries, commissions or expenses. (F) Whenever articles are entered with a claim for the duty exemption provided in this paragraph— (1) the importer shall be deemed to certify that such articles meet all of the conditions for duty exemption; and (2) when requested by the Customs Service, the importer, manufacturer or exporter submits a declaration setting forth all pertinent information with respect to such articles, including the following: (I) A description of such articles, quantities, numbers and marks of packages, invoice numbers and bills of lading; (II) A description of the operations performed in the production of such articles in the West Bank, the Gaza Strip, a qualifying industrial zone or Israel and an identification of the direct costs of processing operations; (III) A description of the materials used in the production of such articles which are wholly the growth, product or manufacture of the West Bank, the Gaza Strip, a qualifying industrial zone, Israel or the United States, and a statement as to the cost or value of such materials; (IV) A description of the operations performed on, and a statement as to the origin and cost or value of, any foreign materials used in such articles which are claimed to have been sufficiently processed in the West Bank, the Gaza Strip, a qualifying industrial zone or Israel so as to be materials produced in the West Bank, the Gaza Strip, a qualifying industrial zone or Israel; and (V) A description of the origin and cost or value of any foreign materials used in the article which have not been substantially transformed in the West Bank, the Gaza Strip or a qualifying industrial zone. (G) For the purposes of this paragraph, a “qualifying industrial zone” means any area that— 111 STAT. 2820 (1) encompasses portions of the territory of Israel and Jordan or Israel and Egypt; (2) has been designated by local authorities as an enclave where merchandise may enter without payment of duty or excise taxes; and (3) has been designated by the United States Trade Representative in a notice published in the Federal Register as a qualifying industrial zone." 3. General note 8 is modified as follows: (a) by inserting in subdivision (b)(ii) of such note the expression “(or directly from the West Bank, the Gaza Strip or a qualifying industrial zone as defined in general note 3(a)(v)(G) to the tariff schedule)” immediately after “Israel”; (b) by inserting in subdivision (b)(iii)(A) of such note the expression “, and including the cost or value of materials produced in the West Bank, the Gaza Strip or a qualifying industrial zone pursuant to general note 3(a)(v) to the tariff schedule,” immediately after “Israel”; and (c) by inserting in subdivision (b)(iii)(B) of such note the expression “ and including the direct costs of processing operations performed in the West Bank, the Gaza Strip or a qualifying industrial zone pursuant to general note 3(a)(v) to the tariff schedule,” immediately after “Israel,”.
6956 November 19, 1996 National Family Week, 1996 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6956 of November 19, 1996
National Family Week, 1996 By the President of the United States of America A Proclamation

Our families are among the great blessings we acknowledge each year at Thanksgiving.

The influence of the family is profound. Families provide essential nurturing and unconditional love; share their values, wisdom, and religious convictions; and give their members the hope and self-confidence they need to succeed. They form the foundation from which our Nation draws its strength and upon which we build our national character.

If our country is to succeed in the 21st century and beyond, we must commit ourselves now to ensuring the health and well-being of the American family. Parents, educators, business, religious, and community leaders must work together to strengthen our Nation's families. Government policies at the Federal, State, and local levels must support families with compassion and a willingness to give all Americans the tools they need to make the most of their own lives.

We must create economic opportunity so that hardworking parents can provide for their children and succeed both at work and at home. We must give our families safe neighborhoods in which to grow, free from guns and gangs, drugs and violence. We must reinforce parents' efforts to set a good example by helping to protect their children from the corrosive influences of alcohol and tobacco and to limit their exposure to explicit sexuality and violence in the entertainment media.

In doing so, we will reaffirm the vital lessons of love, responsibility, and compassion that so many of us have been fortunate to learn in our own families, and ensure that those lessons are passed on to the generations to come.

111 STAT. 2821

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim November 24 through November 30, 1996, as National Family Week. I call upon all Americans to celebrate our Nation’s families with appropriate ceremonies and activities.

IN WITNESS WHEREOF, I have hereunto set my hand this nineteenth day of November, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6957 November 21, 1996 National Great American Smokeout Day, 1996 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6957 of November 21, 1996
National Great American Smokeout Day, 1996 By the President of the United States of America A Proclamation

Every day, nearly 3,000 young Americans become regular smokers, falling victim to negative influences and provocative advertisements and putting themselves at risk of diseases caused by nicotine addiction. Nearly 1,000 of these children will die prematurely and be among the more than 400,000 Americans who lose their lives to tobacco-related illnesses each year. Smoking is the single greatest cause of preventable illness and premature death in our society. The use of tobacco is responsible for nearly one in five deaths in the United States, and we anticipate that, unless smoking rates decline immediately, more than 5 million people under the age of 18 today will die from a smoking- related disease. For a country so deeply devoted to the protection of our children, such numbers are a national tragedy.

Recognizing the urgent need to reverse these devastating statistics, my Administration has announced tough, unprecedented measures to limit children’s access to tobacco products and to reduce tobacco’s appeal to children. In support of these efforts, I am pleased to join the millions of caring citizens who are observing the “Great American Smokeout,” an annual, nationwide effort to help millions of Americans give up tobacco and to raise awareness of nicotine addiction and the deadly risks associated with tobacco use.

Twenty years ago the American Cancer Society organized the first nationwide Great American Smokeout. Through the Society’s leadership, the event has helped millions of Americans to stop smoking by proving to them that, if they can quit for a day, they can quit for a lifetime. In recent years the focus of the Great American Smokeout has broadened to include efforts to help our young people understand that they should never start smoking in the first place.

Since the inception of the Great American Smokeout, the smoking rate of American adults has dropped from 36 percent to 25 percent. Nonetheless, tobacco use continues to take an unacceptable toll. This year, 177,000 new cases of lung cancer will be diagnosed. Moreover, even as the number of adult smokers has declined, the use of tobacco among children is rising.

111 STAT. 2822

On this 20th anniversary of the Smokeout, local offices of the American Cancer Society are hosting a variety of events, including the Great American SmokeScream for middle school students, the Great American Smokeout Pledge for high school students, and the launching of an exciting and interactive Internet web page for teenagers.

The Great American Smokeout is an opportunity for all Americans to renew their commitment to a smoke-free environment for themselves and particularly for their children. Working together on this day and every day throughout the year, we can create a brighter, healthier future for all Americans—young and old.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim November 21, 1996, as National Great American Smokeout Day. I call upon all Americans to join together in an effort to educate our children about the dangers of tobacco use, and I urge smokers and nonsmokers alike to take this opportunity to begin healthier lifestyles that set a positive example for young people.

IN WITNESS WHEREOF, I have hereunto set my hand this twenty-first day of November, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6958 November 22, 1996 Suspension of Entry as Immigrants and Nonimmigrants of Persons Who Are Members or Officials of the Sudanese Government or Armed Forces Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6958 of November 22, 1996
Suspension of Entry as Immigrants and Nonimmigrants of Persons Who Are Members or Officials of the Sudanese Government or Armed Forces By the President of the United States of America A Proclamation

In light of the refusal of the Government of Sudan to comply with United Nations Security Council Resolution 1044 of January 31, 1996, and in furtherance of United Nations Security Council Resolution 1054 of April 26, 1996, I have determined that it is in the foreign policy interests of the United States to restrict the entry into the United States of aliens described in paragraph 3 of United Nations Security Council Resolution 1054 and in section 1 of this proclamation.

NOW, THEREFORE, I, WILLIAM J. CLINTON, by the power vested in me as President by the Constitution and laws of the United States of America, including sections 212(f) and 215 of the Immigration and Nationality Act of 1952, as amended (8 U.S.C. 1182(f) and 1185), and section 301 of title 3, United States Code, hereby find that the unrestricted immigrant and nonimmigrant entry into the United States of persons described in section 1 of this proclamation would, except as provided for in section 2 of this proclamation, be detrimental to the interests of the United States. I therefore, do proclaim that:

Section 1. The entry into the United States as immigrants and nonimmigrants of members of the Government of Sudan, officials of that 111 STAT. 2823Government, and members of the Sudanese armed forces, is hereby suspended.

Sec. 2. Section 1 shall not apply with respect to any person otherwise covered by section 1 where the entry of such person would not be contrary to the interests of the United States.

Sec. 3. Persons covered by section 1 and 2 shall be identified by the Secretary of State.

Sec. 4. Nothing in this proclamation shall be construed to restrict the entry of Sudanese officials coming to the United States on official business of the United Nations other than in a manner consistent with the obligations of the United States to the United Nations.

Sec. 5. This proclamation is effective immediately and shall remain in effect until such time as the Secretary of State determines that it is no longer necessary and should be terminated.

Sec. 6. The Secretary of State is hereby authorized to implement this proclamation pursuant to such procedures as he may establish.

IN WITNESS WHEREOF, I have hereunto set my hand this twenty-second day of November, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6959 November 26, 1996 World AIDS Day, 1996 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6959 of November 26, 1996
World AIDS Day, 1996 By the President of the United States of America A Proclamation

We dedicate World AIDS Day to the memory of those we have lost to HIV and AIDS and to our quest to help those who are living with this disease. The theme of this ninth observance of World AIDS Day, “One World, One Hope,” reminds us that AIDS is a global pandemic and that HIV recognizes no geographic boundaries. Today, an estimated 21.8 million adults and children worldwide are living with HIV/AIDS, and we anticipate that as many as 3 million more will become infected with HIV in this year alone.

Of the almost 6 million men, women, and children around the world who have died of AIDS, more than 330,000 have been Americans. Each day, 100 of our fellow citizens lose their lives to this disease, and nearly 200 more are diagnosed with AIDS. The threat that HIV and AIDS pose to our Nation and the world has demanded a national response involving government, industry, communities, families, and individuals. We have put our best scientific minds to work on research, and our most talented public health professionals have strived to prevent the spread of this epidemic. Parents, teachers, clergy, and other civic leaders have worked together to educate and protect young people and other groups who are so vulnerable to—and devastated by—the scourge of HIV and AIDS.

111 STAT. 2824

At long last, this investment of our time, attention, and resources in science and public health has begun to pay dividends. The past 12 months have offered us reasons for real hope and optimism after so many years of sadness and despair. New treatments, approved in record time, are showing remarkable results in arresting the development of HIV disease and are beginning to improve the health of those who are living with the virus. We have worked hard to provide access to these promising treatments for as many people as possible. We have tripled funding for AIDS drug assistance programs, and we have increased support for the Ryan White Comprehensive AIDS Resources Emergency Act by 30 percent during the past 12 months. We have also preserved the Medicaid program, which provides care to more than half of Americans living with AIDS, including more than 90 percent of the children with AIDS.

We are heartened by our success in reducing the risk of perinatal transmission of HIV from mother to child. For the first time since this epidemic began in 1981, we have seen an actual reduction in the number of infants born with HIV. It is within our grasp to virtually eradicate pediatric HIV disease by the end of this century. Our efforts to prevent other types of HIV transmission are also showing signs of progress. But we must remain vigilant to the continuing need for prevention, reducing the number of new infections year by year until the day when we can eliminate this disease.

As we move forward in this battle, we do so with renewed hope for the future. Let us observe World AIDS Day by intensifying our search for an end to the epidemic, for a cure for those who are living with HIV and AIDS, and for a vaccine to protect all citizens of the world from this relentless killer. And let us reaffirm our commitment to protecting the rights of all those who are living with HIV.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim December 1, 1996, as World AIDS Day, and I invite the Governors of the States, the Commonwealth of Puerto Rico, officials of other territories subject to the jurisdiction of the United States, and the American people to join me in reaffirming our commitment to combating HIV and AIDS and to reach out to those living with this disease.

IN WITNESS WHEREOF, I have hereunto set my hand this twenty-sixth day of November, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6960 November 27, 1996 National Drunk and Drugged Driving Prevention Month, 1996 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6960 of November 27, 1996 111 STAT. 2825
National Drunk and Drugged Driving Prevention Month, 1996 By the President of the United States of America A Proclamation

Driving under the influence of drugs or alcohol is a scourge on our society that we cannot ignore or treat lightly. Drunk and drugged driving has no geographic limits; it is a problem that afflicts cities and rural areas alike in every region of our country. And, most disturbing of all, it is a growing problem—last year, alcohol-related traffic deaths increased for the first time in a decade. Each of us and our loved ones are at risk of becoming victims of a driver impaired by drugs or alcohol. However, we can solve this problem if we make a national commitment to do so.

Two months ago, we charted a course that demands that those who drive must assume the responsibility of staying sober and drug-free behind the wheel. Targeting our youngest drivers first, we began by requiring. as a condition of receiving Federal highway funds, that every State pass a law making it illegal for anyone under 21 to drive with alcohol in their bloodstream.

Now, we must take the next step toward ridding our highways of drunk drivers.

Drivers between 21 and 34 years of age are most likely to drive under the influence of alcohol or other mind-altering drugs. We must not only redouble our efforts to educate those in this age group about the terrible risks posed by drunk and drugged driving, but we must also strengthen our law enforcement efforts to make clear that this behavior will not be tolerated.

Addressing impaired driving by teens and young adults is important but, unfortunately, is not enough to solve the problem. No age group is immune to the temptation to drive under the influence of alcohol or drugs. Through peer pressure and education, we must convince all who would get behind the wheel drunk or drugged to change their behavior.

All of us can do our part to reduce the tragic loss of life and limb caused by drunk and drugged drivers. Parents can thoughtfully and candidly discuss the dangers with their children who drive; more States can pass Zero Tolerance laws; more citizens can prevent friends or acquaintances from getting behind the wheel while under the influence of drugs or alcohol; and more of us can volunteer to be “designated drivers,” pledged to abstain from alcohol when we are with others who might be drinking. By making clear that drunk and drugged driving is unacceptable and by resolving firmly to stop it, we can prevent thousands of tragic deaths and injuries each year.

I ask all Americans to observe a special day of remembrance of the victims of drunk and drugged driving by participating this year in “National Lights on for Life Day.” On Friday, December 20, I ask that drivers nationwide keep their headlights illuminated to call attention to this threat to the health and safety of our citizens. And I ask that we 111 STAT. 2826rededicate ourselves as a Nation to preventing drunk and drugged driving in our communities.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim December 1996 as National Drunk and Drugged Driving Prevention Month. I urge all Americans to recognize the dangers of impaired driving; to take responsibility for themselves and others around them; to stop anyone under the influence of alcohol or drugs from getting behind the wheel of a vehicle; and to help teach our young people about the lifesaving benefits of safe driving habits.

IN WITNESS WHEREOF, I have hereunto set my hand this twenty-seventh day of November, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6961 November 28, 1996 To Facilitate Positive Adjustment to Competition From Imports of Broom Corn Brooms Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6961 of November 28, 1996
To Facilitate Positive Adjustment to Competition From Imports of Broom Corn Brooms By the President of the United States of America A Proclamation

1. On July 2, 1996, the United States International Trade Commission (“USITC”) made an affirmative determination in its investigation under section 202 of the Trade Act of 1974, as amended (“Trade Act”)(19 U.S.C. 2252), with respect to imports of broom corn brooms provided for in heading 9603 of the Harmonized Tariff Schedule of the United States (“HTS”). Under section 202 of the Trade Act, the USITC determined that such brooms are being imported into the United States in such increased quantities as to be a substantial cause of serious injury to the domestic industry producing a like or directly competitive article. Further, the USITC found, pursuant to section 311(a) of the North American Free Trade Agreement Implementation Act (“the NAFTA Implementation Act”)(19 U.S.C. 3371(a)), that imports of such brooms produced in Mexico, considered individually, account for a substantial share of total imports of broom corn brooms and contribute importantly to the serious injury caused by imports, but that such brooms produced in Canada do not so account or contribute. The USITC’s determination and its recommendations to address the serious injury were reported to me on August 1, 1996.

2. On August 30, 1996, I determined, pursuant to section 312(a) of the NAFTA Implementation Act (19 USC 3372(a)), that imports of broom com brooms from Mexico, considered individually, account for a substantial share of total imports and contribute importantly to the serious injury caused by imports; but that imports of broom corn brooms from Canada do not so account or contribute. Acting pursuant to section 203 of the Trade Act (19 U.S.C. 2253), I determined to take appropriate and feasible action within my power that will facilitate efforts by the domestic industry to make a positive adjustment to competition from im-111 STAT. 2827ports of broom corn brooms. I further determined that action would not be implemented at that time and directed the United States Trade Representative (“USTR”) to negotiate and conclude, within 90 days, agreements pursuant to the terms of section 203(a)(3)(E) of the Trade Act (19 U.S.C. 2253(a)(3)(E)) concerning broom corn brooms exported to the United States, and to carry out any agreements reached. Moreover, 1 determined that, not later than the end of this 90-day period (November 28, 1996), I would implement action of a type described in section 203(a)(3). Such negotiations were undertaken by the USTR but have failed to achieve satisfactory agreements concerning such brooms exported to the United States.

3. Pursuant to section 203 of the Trade Act (19 U.S.C. 2253), and after taking into account the considerations specified in section 203(a)(2) of the Trade Act, 1 have determined to implement action of a type described in section 203(a)(3). Such action shall take the form of an increase in, or imposition of, any duty on imported brooms (except whisk brooms), wholly or in part of broom corn and provided for in HTS subheading 9603.10.50 and, with respect to imports that exceed certain specified annual levels, HTS subheading 9603.10.60. Such increase in, or imposition of, duty on such goods shall be effective for a three-year period, and shall apply to imports from all countries, except Canada and Israel and developing countries that account for less than three percent of the relevant imports over a recent representative period. Pursuant to section 203(a)(1)(A) of the Trade Act (19 U.S.C. 2253(a)(1)(A)), I have further determined that these actions will facilitate efforts by the domestic industry to make a positive adjustment to import competition and provide greater economic and social benefits than costs.

4. Section 604 of the Trade Act, as amended (19 U.S.C. 2483), authorizes the President to embody in the HTS the substance of the relevant provisions of that Act, and of other acts affecting import treatment, and actions thereunder, including the removal, modification, continuance, or imposition of any rate of duty or other import restriction.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, acting under the authority vested in me by the Constitution and the laws of the United States, including but not limited to sections 203 and 604 of the Trade Act, do proclaim that:

(1)(a) In order to apply to specified broom com brooms (except whisk brooms) that are either produced in Mexico or goods of Mexico under the terms of general note 12 to the HTS for purposes of the NAFTA, or that are products of countries other than Canada or Israel and other than countries enumerated in general note 4(a) to the HTS as that note existed on November 28, 1996 (except as otherwise specified), the foregoing goods classifiable under HTS subheading 9603.10.50, rates of duty other than those specified for such subheadings in the rates of duty column 1 of the HTS during the three-year period beginning on the effective date of this proclamation, the HTS is modified as provided in section A of the Annex to this proclamation.

(b) During the period from November 28, 1996, through November 27, 1999, inclusive, the symbol “MX” in parentheses following the “Free” rate of duty in the special subcolumn of rates of duty column 1 of the HTS for subheading 9603.10.50 shall be deleted. Upon the 111 STAT. 2828close of November 27, 1999, such symbol “MX” shall be reinserted in subheading 9603.10.50 in alphabetical sequence in the parentheses following the “Free” rate of duty in the special subcolumn of HTS rates of duty column 1, unless the actions taken in this proclamation are earlier expressly modified or terminated.

(c) In order to provide that such goods of Mexico under the terms of general note 12 shall be subject to a NAFTA rate of duty during the period from November 28, 1999, through December 31, 2004, inclusive, the HTS is further modified as provided in section B of the Annex to this proclamation.

(2) In order to establish tariff-rate quotas for brooms classifiable in HTS subheading 9603.10.60 (except such brooms that are the product of Israel or goods of Canada under the terms of general note 12 to the HTS) during the period from November 28, 1996, through November 27, 1999, inclusive, the HTS is further modified as provided in section C of the Annex to this proclamation.

(3)(a) All broom com brooms (except whisk brooms) the product of designated beneficiary countries under the CBERA and the ATPA pursuant to HTS general note 7(a) and general note 11(a), respectively, the foregoing goods classifiable under HTS subheadings 9603.10.50 and 9603.10.60, shall cease to be accorded duty-free entry into the customs territory of the United States during the period from November 28, 1996, through the close of November 27, 1999, inclusive, except as provided in section C of the Annex to this proclamation.

(b) During the time period specified in paragraph (3)(a), the symbols “E,” and “J,” in parentheses following the “Free” rate of duty in the special subcolumn of rates of duty column 1 of the HTS for subheadings 9603.10.50 and 9603.10.60 shall be deleted. Upon the close of November 27, 1999, such symbols “E,” and “J,” shall be reinserted in such subheadings in alphabetical sequence in the parentheses following the “Free” rate of duty in the special subcolumn of HTS rates of duty column 1, and eligible goods the product of designated CBERA and ATPA beneficiary countries shall again be accorded duty-free entry into the customs territory of the United States without quantitative limitation, unless the actions taken in this proclamation are earlier expressly modified or terminated.

(4) Any provisions of previous proclamations and Executive orders that are inconsistent with the actions taken in this proclamation are superseded to the extent of such inconsistency.

(5) The modifications to the HTS made by this proclamation, including the Annex thereto, shall be effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 a.m. on November 28, 1996, as provided in the Annex to this proclamation, unless such actions are earlier expressly modified or terminated.

IN WITNESS WHEREOF, I have hereunto set my hand this twenty-eighth day of November, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 111 STAT. 2829 ANNEX MODIFICATIONS TO THE HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES
SECTION A. Effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after November 28, 1996, subchapter III of chapter 99 of the Harmonized Tariff Schedule at the United States is modified by inserting in numerical sequence the new provisions set forth below, applicable during the time periods specified therein, with the language inserted in the columns entitled “Heading/Subheading”, “Article Description”, “Rates of Duty 1-General”, “Rates of Duty 1-special” and “Rates of Duty 2”; and upon the close of November 27, 1999, these provisions and superior text thereto shall be deleted from the HTS:
Brooms (except whisk brooms), wholly or in part of broom corn, valued not over 96¢ each, in quantities in excess of the in-quota quantity for such goods (provided for in subheading 9603.10.50):
 If entered during the period from November 29, 1996, through November 27, 1997:
9903.96.01   Products of countries enumerated in general note 4(a) to the HTS as that note existed on November 28, 1996 to the tariff schedule, except products of Panama, and goods of Canada under the terms of general note 12 to the tariff schedule 32¢ each Free (E,J)
9903.96.02   Other 33¢ each Free (IL) 33¢ each
33¢ each
(MX)
 If entered during the period from November 29, 1991, through November 27, 1998:
9903.96.03   Products of countries enumerated in general note 4(a) to the HTS as that note existed on November 28, 1996 to the tariff schedule, except products of Panama, and goods of Canada under the terms of general note to the tariff schedule 32¢ each Free (E,J)
9903.96.04   Other 32.5¢ each Free (IL) 32.5¢ each
32.5¢ each
(MX)
 If entered during the period from November 29, 1998, through November 27, 1999:
111 STAT. 2830
9903.96.05   Products of countries enumerated in general note 4(a) to the HTS as that note existed on November 28, 1996 to the tariff schedule, except products of Panama, and goods of Canada under the terms of general note 12 to the tariff schedule 32¢ each Free (E,J)
9903.96.06   Other 32.1¢ each Free (IL) 32.1¢ each"
32.1¢ (MX)
B.(1). Effective with respect to eligible goods of Mexico, under the terms of general note 12 to the tariff schedule, that are entered, or withdrawn from warehouse for consumption, on or after November 28, 1996, and through the close of November 27, 1999, as provided herein, subheading 9906.96.02 is modified by striking “22.4% (MX)” and by inserting, effective on each of the dates set forth below, the following new rates of duty for such goods of Mexico:
November 28, 1996 “33% (MX)"
November 28, 1997 “32.5% (MX)"
November 28, 1998 “32.1% (MX)"
(2). Effective with respect to eligible goods of Mexico, under the terms of general note 12 to the tariff schedule, that are entered, or withdrawn from warehouse for consumption, on or after November 28, 1999, and through the close of December 31, 1999, HTS subheading 9906.96.01 is modified by deleting “Free” from the special subcolumn of rates of duty column 1 and by inserting in lieu thereof “16%”. Effective with respect to such eligible goods of Mexico that are entered, or withdrawn from warehouse for consumption, on or after January 1, 2000—
B(2)(i) HTS subheading 9603.10.60 is modified by deleting from the special duty rates subcolumn the expression “See 9906.96.01–9906.96.02 (MX) (s)” and by inserting in lieu thereof the expression “16% (MX)”; and (ii) Subheadings 9906.96.01 and 9906.96.02, the superior text beginning with the word “Brooms,” and the superior text beginning with the word “Valued” are deleted from the HTS.
C. Effective with respect to goods (except goods of Canada under the terms of general note 12 to the tariff schedule and except products of Israel) that are entered, or withdrawn from warehouse for consumption, on or after November 28, 1996, and through the close of November 27, 1999, subchapter III of chapter 99 111 STAT. 2831of the HTS is further modified by inserting immediately after subheading 9903.96.06 (as added by section (a) of this annex) the following new provisions, applicable during the time periods specified therein, with the language inserted in the columns entitled “Heading/Subheading”, “Article Description”, “Rates of Duty 1-General”, “Rates of Duty 1-Special” and “Rates of Duty 2”; and upon the close of November 27, 1999, these provisions and superior text shall be deleted from the HTS:
“Brooms (except whisk brooms), wholly or in part of broom corn, valued over 96¢ each
(provided for in subheading 9603.10.60):
9903.96.10  If the product of Panama and entered during
 the period from November 28 in a year beginning in 1996 through November 27 in the
 following year, inclusive, in quantities not
 in excess of 41,000 dz Free (E)
9903.96.11  If the product of Honduras and entered during
 the period from November 28 in a year beginning
 in 1996 through November 27 in the following
 year, inclusive, in quantities not in excess
 of 37,000 dozen Free (E)
9903.96.12  If the product of Colombia and entered during
 the period from November 28 in a year beginning
 in 1996 through November 27 in the following
 year, inclusive, in quantities not in excess
 of 12,000 dozen Free (J)
111 STAT. 2832
9903.96.13 If the product of any country except Panama,
Honduras, Colombia, Mexico, Canada, or
Israel, and entered during
the period from November 28
in a year beginning in 1996 through November
27 in the following year, in quantities not in
excess of 2,000 dozen 32% Free (IL)
32%
Other:
 Entered during the period from
 November 28, 1996, through November
 27, 1997, inclusive:
9903.96.14   Products of any country enumerated
  in general note 4(a) to the HTS as that
  note existed on November 28, 1996 to the
  tariff schedule (except Panama, Honduras
  or Colombia), and goods of Canada
  under the terms of general note 12
  to the tariff schedule 32% Free (E,J)
9903.96.15  Other 33% Free (IL)
33%
 Entered during the period from
 November 28, 1997, through November
 27, 1998, inclusive:
  Products of any country enumerated
  in general note 4(a) to the HTS as
  that note existed on November 28,
  1996 to the tariff schedule (except
  Panama, Honduras or Colombia),
  and goods of Canada under
  the terms of general note 12
  to the tariff schedule 32% Free (E,J)
9903.96.17   Other 32.5% Free (IL)
32.5%
 Entered during the period from
 November 28, 1998, through November
 27, 1999, inclusive:
9903.96.18   Products of any country enumerated
111 STAT. 2833
  in general note 4(a) to the HTS as
  that note existed on November 28,
  1996 to the tariff schedule (except
  Panama, Honduras or Colombia),
  and goods of Canada under
  the terms of general note 12
  to the tariff schedule 32% Free (E,J)
9903.96.19   Other 32.1% Free (IL)
32.1%"
6962 December 2, 1996 To Implement the United States-Israel Agreement on Trade in Agricultural Products Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6962 of December 2, 1996
To Implement the United States-Israel Agreement on Trade in Agricultural Products By the President of the United States of America A Proclamation

1. On April 22, 1985, the United States entered into the Agreement on the Establishment of a Free Trade Area between the Government of the United States of America and the Government of Israel (“the FTA Agreement”), approved by the Congress in the United States-Israel Free Trade Area Implementation Act of 1985 (“the FTA Act”) (19 U.S.C. 2112 note).

2. The United States and Israel acknowledge that they have differing interpretations as to the meaning of certain rights and obligations in the FTA Agreement, in particular with respect to market access for certain United States agricultural products. In order to maintain the general level of reciprocal and mutually advantageous concessions with respect to agricultural trade with Israel, on November 4, 1996, the Government of the United States entered into an agreement with the Government of Israel concerning certain aspects of trade in agricultural products, effective December 4, 1996, through December 31, 2001 (“the 1996 Agreement”).

3. Section 4(b) of the FTA Act provides that, whenever the President determines that it is necessary to maintain the general level of reciprocal and mutually advantageous concessions with respect to Israel provided for by the FTA Agreement, the President may proclaim such withdrawal, suspension, modification, or continuance of any duty, or such continuance of existing duty-free or excise treatment, or such additional duties as the President determines to be required or appropriate to carry out the FTA Agreement.

4. Pursuant to section 4(b) of the FTA Act, I have determined that it is necessary, in order to maintain the general level of reciprocal and mutually advantageous concessions with respect to Israel, to provide through the close of December 31, 2001, access into the United States customs territory for specified quantities of certain agricultural products of Israel free of duty or certain fees or other import charges.

111 STAT. 2834

5. Section 604 of the Trade Act of 1974 (19 U.S.C. 2483)(“the 1974 Act”), authorizes the President to embody in the Harmonized Tariff Schedule of the United States (“HTS”) the substance of the relevant provisions of that Act, and of other acts affecting import treatment, and actions thereunder, including the removal, modification, continuance, or imposition of any rate of duty or other import restriction.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, acting under the authority vested in me by the Constitution and the laws of the United States, including but not limited to section 4 of the FTA Act and section 604 of the 1974 Act, do hereby proclaim:

(1) In order to implement aspects of the 1996 Agreement with the Government of Israel concerning certain aspects of trade in agricultural products, the HTS is modified as provided in the Annex to this proclamation.

(2) Any provisions of previous proclamations and Executive orders that are inconsistent with the actions taken in this proclamation are superseded to the extent of such inconsistency.

(3) The modifications to the HTS made by the Annex to this proclamation shall be effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after the dates set forth in such Annex, and the tariff treatment set forth therein shall be effective as provided in-such Annex through December 31, 2001.

IN WITNESS WHEREOF, I have hereunto set my hand this second day of December, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 111 STAT. 2835 ANNEX TEMPORARY MODIFICATIONS TO THE HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES TO IMPLEMENT THE AGREEMENT WITH ISRAEL CONCERNING CERTAIN ASPECTS OF TRADE IN AGRICULTURAL PRODUCTS

Effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after December 4, 1996. the Harmonized Tariff Schedule of the United States (“HTS”) is modified as follows:

1. Subheadings 0401.30.75, 0403.90.78 and 0405.10.20 are each modified by inserting in the Rates of Duty 1-Special subcolumn the expression “See 9908.04.01 (IL)”. 2. Subheadings 0402.10.50 and 0402.21.25 are each modified by inserting in the Rates of Duty 1-Special subcolumn the expression “See 9908.04.03 (IL)”. 3. Subheadings 0406.10.08, 0406.10.18, 0406.10.28, 0406.10.38, 0406.10.48, 0406.10.58, 0406.10.68, 0406.10.78, 0406.10.88, 0406.20.28, 0406.20.33, 0406.20.39, 0406.20.48, 0406.20.53, 0406.20.63, 0406.20.67, 0406.20.71, 0406.20.75, 0406.20.79, 0406.20.83, 0406.20.87, 0406.20.91, 0406.30.18, 0406.30.28, 0406.30.38, 0406.30.48, 0406.30.53, 0406.30.63, 0406.30.67, 0406.30.71, 0406.30.75, 0406.30.79, 0406.30.83, 0406.30.87, 0406.30.91, 0406.40.70, 0406.90.12, 0406.90.18, 0406.90.32, 0406.90.37, 0406.90.42, 0406.90.48, 0406.90.54, 0406.90.68, 0406.90.74, 0406.90.78, 0406.90.84, 0406.90.88, 0406.90.92, 0406.90.94, 0406.90.97 and 1901.90.36 are each modified by inserting in the Rates of Duty 1-Special subcolumn the expression “See 9908.04.05 (IL)”. 4. Subheadings 1202.10.80, 1202.20.80, 2008.11.35 and 2008.11.60 are each modified by inserting in the Rates of Duty 1-Special subcolumn the expression “See 9908.12.01 (IL)”. 5. Subheading 2105.00.20 is modified by inserting in the Rates of Duty 1- Special subcolumn the expression “See 9908.21.01 (IL)”. 6. New subchapter VIII, with the notes and tariff provisions set forth below, is inserted at the end of chapter 99: “SUBCHAPTER VIII TEMPORARY MODIFICATIONS ESTABLISHED PURSUANT TO THE AGREEMENT WITH ISRAEL CONCERNING CERTAIN ASPECTS OF TRADE IN AGRICULTURAL PRODUCTS U.S. Notes 1. This subchapter contains temporary modifications of the provisions of the tariff schedule established pursuant to the United States' agreement with Israel concerning certain aspects of trade in agricultural products, dated November 4, 1996. Products of Israel eligible for benefits of the agreement when imported into the customs territory, and described in the provisions of this subchapter for which quantitative limits are prescribed along with rates of duty followed by the symbol “(IL)" are herein provided, are subject to duty under the provisions and at the rates set forth in this subchapter in lieu of the rates provided therefor in chapters 1 through 97 in rates of duty column 1 when entered in quantities that are within the limits provided in this subchapter. Notwithstanding quota provisions elsewhere in the tariff schedule, eligible products of Israel shall be permitted to enter the United States to the extent and at the duty rates herein provided. No goods entered under the quantitative limits set forth in this subchapter shall be counted toward any quota or tariff-rate quota provided for such goods elsewhere in the tariff schedule. No other preferential tariff treatment provided for elsewhere in the tariff schedule shall be afforded to goods described in the provisions of this subchapter. Unless otherwise provided, the provisions and notes in this subchapter are effective as to such products of Israel that are entered, or withdrawn from warehouse for consumption, on or after December 4, 1996, and through the close of December 31, 2001, after which date this subchapter shall cease to apply to any goods entered after that date. 2. Wherever goods are described by a provision of this subchapter and accorded a temporary modification of the otherwise applicable duty or quota treatment from chapters 1 through 97 of this schedule, the reporting number, in the absence of specific instructions providing otherwise, shall be the appropriate statistical reporting number for the basic provision (the appropriate provision for classification purposes in chapters 1 through 97) preceded by the appropriate subheading number from this subchapter. For statistical purposes, both the basic provision statistical reporting number and the applicable subheading number from this subchapter shall be collected by the United States Bureau of Census. 111 STAT. 2836 3. The aggregate quantity of butter, and fresh or sour cream containing over 45 percent by weight of butterfat, that are eligible products of Israel entered under subheading 9908.04.01 during any period specified in this note shall not exceed the quantity specified below.
Applicable time period Quantity (kg)
Dec. 4-Dec. 31, 1996 300,000
Calendar year 1997 315,000
Calendar year 1998 331,000
Calendar year 1999 347,000
Calendar year 2000 365,000
Calendar year 2001 383,000
4. The aggregate quantity of dried milk, whether or not containing added sugar or other sweetening matter, that are eligible products of Israel entered under subheading 9908.04.03 during any period specified in this note shall not exceed the quantity specified below.
Applicable time period Quantity (kg)
Dec. 4-Dec. 31, 1996 1,000,000
Calendar year 1997 1,030,000
Calendar year 1998 1,061,000
Calendar year 1999 1,093,000
Calendar year 2000 1,126,000
Calendar year 2001 1,160,000
5. The aggregate quantity of cheese and substitutes for cheese that are eligible products of Israel entered under subheading 9908.04.05 during any period specified in this note shall not exceed the quantity specified below.
Applicable time period Quantity (kg)
Dec. 4-Dec. 31, 1996 1,000,000
Calendar year 1997 1,053,000
Calendar year 1998 1,107,000
Calendar year 1999 1,162,000
Calendar year 2000 1,220,000
Calendar year 2001 1,279,000
6. The aggregate quantity of peanuts that are eligible products of Israel entered under subheading 9908.12.01 during any period specified in this note shall not exceed the quantity specified below.
Applicable time period Quantity (kg)
Dec. 4-Dec. 31, 1996 100,000
Calendar year 1997 103,000
Calendar year 1998 106,000
Calendar year 1999 109,000
Calendar year 2000 113,000
Calendar year 2001 116,000
For the purposes of this note, imports of peanuts in the shell shall be charged against the quantities in this note on the basis of 75 kilograms for each 100 kilograms of peanuts in the shell. 7. The aggregate quantity of ice cream that are eligible products of Israel entered under subheading 9908.21.01 during any period specified in this note shall not exceed the quantity specified below.
Applicable time period Quantity (kg)
Dec. 4-Dec. 31, 1996 251,670
Calendar year 1997 276,837
Calendar year 1998 304,521
Calendar year 1999 334,973
Calendar year 2000 368,470
Calendar year 2001 405,317
111 STAT. 2837
Eligible products of Israel under the terms of note 1 to this subchapter:
9908.04.01  Provided for in subheading 0401.30.75, 0403.90.78 or 0405.10.20 and subject to the quantitative limits specified in U.S. note 3 to this subchapter Free (IL)
9908.04.03  Provided for in subheading 0402.10.50 or 0402.21.25 and subject to the quantitative limits specified in U.S. note 4 to this subchapter Free (IL)
9908.04.05  Provided for in subheading 0406.10.08, 0406.10.18, 0406.10.28, 0406.10.38, 0406.10.48, 0406.10.58, 0406.10.68, 0406.10.78, 0406.10.88, 0406.20.28, 0406.20.33, 0406.20.39, 0406.20.48, 0406.20.53, 0406.20.63, 0406.20.67, 0406.20.71, 0406.20.75, 0406.20.79, 0406.20.83, 0406.20.87, 0406.20.91, 0406.30.18, 0406.30.28, 0406.30.38, 0406.30.48, 0406.30.53, 0406.30.63, 0406.30.67, 0406.30.71, 0406.30.75, 0406.30.79, 0406.30.83, 0406.30.87, 0406.30.91, 0406.40.70, 0406.90.12, 0406.90.18, 0406.90.32, 0406.90.37, 0406.90.42, 0406.90.48, 0406.90.54, 0406.90.68, 0406.90.74, 0406.90.78, 0406.90.84, 0406.90.88, 0406.90.92, 0406.90.94, 0406.90.97 or 1901.90.36 and subject to the quantitative limits specified in U.S. note 5 to this subchapter Free (IL)
9908.12.01 Provided for in subheading 1202.10.80, 1202.20.80, 2008.11.35 or 2008.11.60 and subject to the quantitative limits specified in U.S. note 6 to this subchapter Free (IL)
9908.21.01 Provided for in subheading 2105.00.20 and subject to the quantitative limits specified in U.S. note 7 to this subchapter Free (IL)"
6963 December 5, 1996 National Pearl Harbor Remembrance Day, 1996 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6963 of December 5, 1996
National Pearl Harbor Remembrance Day, 1996 By the President of the United States of America A Proclamation

Fifty-five years ago, on a calm Hawaiian morning, Imperial Japan launched a surprise attack against the U.S. Armed Forces stationed at Pearl Harbor, shattering the peace of our land and drawing America into World War II. The assault of December 7, 1941, lasted only two hours, but it killed or injured almost 3,600 Americans, destroyed a major portion of our Nation’s Pacific Fleet, and damaged more than 325 aircraft, severely weakening our air power.

The attack jolted our Nation and forced us into a war unlike any previous conflict, waged across the globe in places most Americans had never heard of, in dense jungles and on an ocean we once thought too large for an enemy to cross. It was a war that would require unparalleled courage and determination from soldier and civilian alike, and all Americans rose to the monumental challenge.

During this time, our Nation stood united in purpose and in spirit as never before. Millions of brave and patriotic men and women served the Armed Forces in the struggle for freedom; millions of others sac-111 STAT. 2838rificed on the home front. On farms and in factories, mines, and shipyards, Americans labored around the clock to supply the food, weapons, and equipment needed to win the war. In our homes, schools, and places of worship, Americans from every walk of life prayed and worked together for victory. And—as a powerful testament to America’s resilience—battleships damaged at Pearl Harbor returned to service and helped break the back of the Japanese fleet.

The generation that fought World War II came home to build new careers and communities and made America the richest, freest nation in history. Some men and women remained in uniform, safeguarding our liberties and ensuring that tyranny would never again threaten our shores. In peace, this generation vowed never again to be unprepared and gave our Nation the security and progress that we have known and cherished for over 50 years.

This is the precious legacy bestowed on us by the men and women of the World War II generation. We can best honor their deeds of courage and determination by maintaining their vigil in defense of freedom and striving, as they did, to make the world a better place for all its peoples.

As we mark the 55th anniversary of the attack on Pearl Harbor, let us remember in prayer all those who died on that day and throughout World War II. Let us also honor all World War II veterans and their families, those who lost loved ones, and those who worked on the home front. Finally, let us give thanks once again for the peace and freedom secured by their service and their sacrifice.

The Congress, by Public Law 103–308, has designated December 7, 1996, as “National Pearl Harbor Remembrance Day.”

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim December 7, 1996, as National Pear) Harbor Remembrance Day. I urge all Americans to observe this day with appropriate programs, ceremonies, and activities in honor of the Americans who served at Pearl Harbor. I also ask all Federal departments and agencies, organizations, and individuals to fly the flag of the United States at halfstaff on this day in honor of those Americans who died as a result of the attack on Pearl Harbor.

IN WITNESS WHEREOF, I have hereunto set my hand this fifth day of December, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6964 December 10, 1996 Human Rights Day, Bill of Rights Day, and Human Rights Week Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6964 of December 10, 1996
Human Rights Day, Bill of Rights Day, and Human Rights Week By the President of the United States of America A Proclamation

When America’s founders crafted the Constitution and Bill of Rights more than two centuries ago, they not only created a blueprint for the 111 STAT. 2839conduct of American government, but they also gave expression to a vision of human dignity that inspires people to this day the world over. Our Nation’s commitment to the freedoms enumerated in the Bill of Rights—among them freedom of speech, religion, and assembly, and the right to due process and a fair trial—serves as a beacon of hope to oppressed peoples everywhere.

Americans continue to work to improve our application of equality under the law for all our own citizens, as we believe that freedom and justice are the birthright of humankind. We are also working daily to foster and promote the growth of these rights in other countries. Indeed, the championing of democracy and human rights serves as a cornerstone of my Administration’s foreign policy.

As we observe Human Rights Day, Bill of Rights Day, and Human Rights Week, we can take satisfaction in our progress in advancing human rights around the world in the past decade. In fact, more than half the people in the world now live under democratic political systems. Even in countries still struggling to establish basic human rights and freedoms, we are seeing some progress. And brave reformers such as Aung San Suu Kyi of Burma continue to press their rightful demand for freedom.

It is also encouraging that, with the growth and development of the human rights movement, there has been greater awareness and appreciation that women’s rights are human rights.

Just over a year ago, representatives from 189 countries met in Beijing at the United Nations Fourth World Conference on Women. That historic gathering focused the attention of the world on women's rights and needs. Now, we are beginning to see some progress. In many countries, increasing numbers of women are contesting and attaining public office and playing a vital role in shaping the political agenda. In Romania, women gathered from around Central and Eastern Europe to promote the goals of the Beijing women’s conference. Thailand has passed a new anti-prostitution law. Women in Namibia are now afforded equal rights with men in marriage. Chile has made a serious commitment to expanding educational opportunities for girls. And in the United States, the Violent Crime Control and Law Enforcement Act, that I signed into law in September of 1994, reflects our profound national commitment to ending abuse against women. These are just a few hopeful signs of improvement in global respect for women's rights, and it is fitting that we celebrate them.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim December 10, 1996, as Human Rights Day; December 15, 1996, as Bill of Rights Day; and the week beginning December 10, 1996, as Human Rights Week. I call upon the people of the United States to celebrate these observances with appropriate programs, ceremonies, and activities that demonstrate our national commitment to the Constitution and the promotion of human rights for all people.

IN WITNESS WHEREOF, I have hereunto set my hand this tenth day of December, in the year of our Lord nineteen hundred and ninety-six, 111 STAT. 2840and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6965 December 13, 1996 Wright Brothers Day, 1996 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6965 of December 13, 1996
Wright Brothers Day, 1996 By the President of the United States of America A Proclamation

Ninety-three years ago, on a windswept North Carolina beach, air travel by hot air balloon and gliders gave way to American ingenuity and the era of powered flight. Wilbur and Orville Wright—employing innovations like the wind tunnel and single component testing—designed, built, and ultimately flew the first powered, heavier-than-air craft on the dunes of Kitty Hawk. Years later, Wilbur was to say of this historic event, “It is the complexity of the flying problem that makes it so difficult. It is not . . . solved by stumbling upon a secret, but by the patient accumulation of information upon a hundred different points.” No longer would the ability to travel by air be bounded by the simple physics of wind and weather, but by the power of the human imagination.

As we have expanded the scope of our dreams, our love of flight has extended our command of the sky. Today, air travel is not only the fastest means of transportation, but the safest as well, and the United States air transportation system, which continues to improve every year, serves as the model to which all others are compared.

My Administration continues to work to make the skies ever safer. Integral to this effort has been the dedicated service of thousands of men and women throughout the air transportation community who strive daily to protect air travelers. Indeed, this month, the Vice President and I were pleased to announce that the major airlines have agreed to install fire detection systems in the cargo holds of some 3,700 airliners that carry the vast majority of Americans flying each year. We cannot make the world risk free, but we can reduce the risks we face. Working together, we have taken another important step to ensure the safety of the flying public.

This year marks the 50th anniversary of Federal aid for our Nation’s airports. Working in partnership with State and local governments, private airport operators, and the air carrier and general aviation communities, the Federal Aviation Administration (FAA) has assisted numerous airports with critical safety, security, and capacity projects that directly benefit the American traveling public. It is particularly fitting, as Americans celebrate an important milestone in the history of air transportation, that this year also marks the beginning of important reforms for the FAA that recognize its vital role in advancing sound aviation management and development in the United States and around the world.

On April 1, 1996, the FAA began transforming itself from the model previously mandated by law into a more effective, streamlined system, better designed for the challenges of the twenty-first century. In the re-111 STAT. 2841cently enacted Federal Aviation Reauthorization Act of 1996, the Congress, working with my Administration, complemented those important reforms with a new financial model for the agency to help it meet the safety and capacity challenges it faces. This legislation also provided the FAA with improved tools to perform its mission more effectively. It builds on security recommendations of the Vice President’s Commission on Aviation Safety and Security that will improve the FAA’s ability to more comprehensively address the threat posed by terrorists to civil air transportation. With these statutory improvements, the world of aviation will be an exciting one in which future aviation pioneers may fulfill their dreams and aspirations.

The Congress, by a joint resolution approved December 17, 1963 (77 Stat. 402; 36 U.S.C. 169), has designated December 17 of each year as “Wright Brothers Day” and has authorized and requested the President to issue annually a proclamation inviting the people of the United States to observe that day with appropriate ceremonies and activities.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim December 17, 1996, as Wright Brothers Day.

IN WITNESS WHEREOF, I have hereunto set my hand this thirteenth day of December, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6966 January 16, 1997 Religious Freedom Day, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6966 of January 16, 1997
Religious Freedom Day, 1997 By the President of the United States of America A Proclamation

Every day, in neighborhoods and communities across our Nation, Americans come together to worship and to reaffirm their most deeply held spiritual values. Our right to worship freely—each in our own way—is essential to our well-being. Religious Freedom Day offers us an invaluable opportunity to reflect on this precious human right and to give thanks for its protection in our Nation.

Freedom from religious persecution was of such profound importance to our founders that they placed it first among the freedoms guaranteed by the Bill of Rights. History has proved the wisdom of that decision. America’s commitment to religious tolerance has empowered us to achieve an atmosphere of understanding, trust, and respect in a society of diverse cultures and religious traditions. And today, much of the world still looks to the United States as the champion of religious liberty.

Yet, even in America, we must be ever vigilant in protecting the freedoms so important to our ancestors and so admired by people throughout the world. The church arsons and the desecration of synagogues and mosques in recent years demonstrated for us all that our country is not entirely free from violence and religious hatred. My Administra-111 STAT. 2842tion took quick and decisive action, including working with the Congress to help churches rebuild and to prevent future incidents. And I am pleased that the American people are coming together as a national community to speak out against such crimes and to renew the climate of trust and tolerance so that all our people can worship without fear.

We must also support the aspirations of ethnic and religious minorities in other nations as they strive for their own right to worship freely. My Administration has established the Advisory Committee on Religious Freedom Abroad to provide counsel on how best to prevent persecution and promote reconciliation among people of different faiths. I invite all nations to join us in supporting individuals in houses of worship around the world as they exercise one of the most sacred of human rights.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim January 16, 1997, as Religious Freedom Day. 1 call upon the people of the United States to observe this day with appropriate ceremonies and activities, and I urge them to reaffirm their commitment to the principle of religious freedom.

IN WITNESS WHEREOF, I have hereunto set my hand this sixteenth day of January, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6967 January 17, 1997 Martin Luther King, Jr., Federal Holiday, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6967 of January 17, 1997
Martin Luther King, Jr., Federal Holiday, 1997 By the President of the United States of America A Proclamation

People throughout the world celebrate the birthday of Dr. Martin Luther King, Jr., as a tribute to his shining example of love and justice.

Dr. King was a man of clear and powerful vision who offered an uncompromising message of brotherhood and hope at a time when violence and racial intolerance tore at the seams of our Nation. In addressing these ills, he often referred to what he called the “magnificent words” of the Declaration of Independence, which proclaimed that “all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.” He declared these words to be “a promissory note to which every American was to fall heir.” and upon which payment could no longer be delayed. Dr. King’s struggle made it possible for all of us to move closer to the ideals set forth in the Declaration of Independence and in our Constitution.

Although ours is the most successful multiracial, multicultural society in human history, in the words of Dr. King, “our work is not yet done.” We have not yet fully realized Dr. King’s dream of a Nation of full opportunity, genuine equality, and consistent fair play for all.

111 STAT. 2843

Every citizen must rise to meet that challenge because America’s promise of freedom and opportunity cannot truly be realized for any of us until it is realized for every one of us. We all have an obligation to reach out to one another—across the artificial barriers of race, gender, religion, class, and age—so that each member of our society shares fully in the promise of the American Dream.

In the spring of 1963, Dr. King was arrested in Birmingham, Alabama, while protesting discrimination in public accommodations and employment. From his jail cell, he wrote of his faith that ultimately what was good in America would prevail over fear and prejudice:

We will reach the goal of freedom in Birmingham and all over the nation, because the goal of America is freedom. Abused and scorned though we may be, our destiny is tied up with the destiny of America. . . . We will win our freedom because the sacred heritage of our nation and the eternal will of God are embodied in our echoing demands.

As I begin my second term as the last President of the 20th century, I ask each American to work with me to usher in a new era of hope, reconciliation, and fellowship among all our people—rich and poor, young and old, and men and women of every race. I urge all Americans to put intolerance behind us, seek common ground, and strive for justice and community in our Nation.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by. virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim Monday, January 20, 1997, as the Martin Luther King, Jr., Federal Holiday. I call upon the people of the United States to observe this occasion with appropriate programs, ceremonies, and activities.

IN WITNESS WHEREOF, I have hereunto set my hand this seventeenth day of January, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6968 January 20, 1997 National Day of Hope and Renewal, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6968 of January 16, 1997
National Day of Hope and Renewal, 1997 By the President of the United States of America A Proclamation

Today as we celebrate the last Presidential Inauguration of the 20th century and raise our sights with hope and humility toward the challenges of a new age, let us together ask God’s guidance and blessing.

This day marks not a personal or political victory but the triumph of a free people who have freely chosen the course our country will take as we prepare for the 21st century.

During the past 4 years, we have grown together as a people and as a Nation. Touched by tragedy, strengthened by achievement, exhila-111 STAT. 2844rated by the challenges and opportunities ahead, we have come a long way on our journey to change America’s course for the better. We have always been a people of hope—hope that we can make tomorrow brighter than today, hope that we can fulfill our Nation’s enduring promise of freedom and opportunity. And we have always known that, by the grace of God and our mutual labor, we can make our hopes reality.

Today, we live in an age of possibility—a moment of rich opportunity that brings with it a deep responsibility for the future and the generations to come. We must seize this special moment with a commitment to do right by those who will follow us in this blessed land.

Dr. Martin Luther King, Jr., whose life and vision we honor today, recognized that the destiny of each American is bound to the destiny of all Americans; that if we are to go forward, we must go forward together. So, let us pledge today to continue our national journey together. Let us reaffirm our commitment to our shared values of family and faith, work and opportunity. And let us resolve to work together, one Nation under God, to build a bridge of hope and renewal to a new American century.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by the authority vested in me by the Constitution and laws of the United States, do hereby proclaim January 20, 1997, a National Day of Hope and Renewal, and I call upon the citizens of this great Nation to observe this day by reflecting on their obligations to one another and to our beloved country and by facing the future with a spirit of hope and renewal.

IN WITNESS WHEREOF, I have hereunto set my hand this twentieth day of January, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6969 January 27, 1997 To Modify Application of Duty-Free Treatment of Certain Articles Under the Generalized System of Preferences, and for Other Purposes Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6969 of January 16, 1997
To Modify Application of Duty-Free Treatment of Certain Articles Under the Generalized System of Preferences, and for Other Purposes By the President of the United States of America A Proclamation

1. Pursuant to section 503(c)(1) of the Trade Act of 1974, as amended by Public Law 104–88; 110 Stat. 1755, 1922 (“the 1974 Act”), the President may withdraw, suspend, or limit the application of the duty-free treatment accorded under section 501 of the 1974 Act (19 U.S.C. 2461) with respect to any article. With due regard for the factors set forth in sections 501 and 502(c) of the 1974 Act (19 U.S.C. 2461 and 2462(c)), I have determined that it is appropriate to modify the application of duty-free treatment under title V of the 1974 Act for certain articles. including certain goods previously eligible for such treatment that the Customs Service has reclassified.

111 STAT. 2845

2. Presidential Proclamation 6961 of November 28, 1996, provided import relief with respect to certain broom corn brooms. For certain subheadings of the Harmonized Tariff Schedule of the United States (HTS) established to carry out this relief, provisions were omitted that would have continued staged reductions of special rates of duty for the goods concerned, previously proclaimed pursuant to section 201(a) of the North American Free Trade Agreement Implementation Act (19 U.S.C. 333 (a)). Further, other HTS provisions established by that proclamation contain conflicting dates that complicate their administration. To rectify these omissions and to permit proper administration of the import relief, I have decided that it is necessary and appropriate to continue previously proclaimed duty treatment for the affected goods and to make technical corrections in certain HTS provisions.

3. Section 213 of the Caribbean Basin Economic Recovery Act, as amended (CBERA) (19 U.S.C. 2703), and section 204 of the Andean Trade Preference Act (ATPA) (19 U.S.C. 3203) authorize the President to provide duty-free entry for all eligible articles, and duty reductions for certain other articles, that are the product of any country that has been designated as a beneficiary country under those Acts. To clarify the preferential tariff treatment provided to particular dutiable goods that are the product of beneficiary countries under the CBERA or the ATPA and that are eligible to enter under HTS heading 9802.00.80, which provides for certain goods assembled abroad using components of U.S. origin, I have decided it is appropriate to provide special rates of duty for purposes of the CBERA and of the ATPA in heading 9802.00.80 to apply to such goods.

4. Presidential Proclamation 6948 of October 29, 1996, modified tariff provisions concerning special import quotas for upland cotton. That proclamation also modified certain provisions of the HTS and of prior Presidential proclamations to correct technical errors and to clarify the intent of previously proclaimed modifications. In proclaiming the modifications to the provisions on upland cotton, a conforming change to U.S. note 6 to subchapter III of chapter 99 of the HTS was omitted. Further, the instructions in section A(5)(c) of Annex II to such proclamation concerning modifications to subchapter IV of chapter 99 to the HTS contained an error. To rectify the omission and to correct the error in instructions, I have decided it is necessary and appropriate to modify U.S. note 6 to subchapter III of chapter 99 of the HTS and to amend the instructions in section A(5)(c) of Annex II to Proclamation 6948.

5. Presidential Proclamation 6763 of December 23, 1994, implemented with respect to the United States the trade agreements resulting from the Uruguay Round of multilateral trade negotiations, including Schedule XX—United States of America, annexed to the Marrakesh Protocol to the General Agreement on Tariffs and Trade 1994. A conforming change in a subheading in subchapter V of chapter 99 of the HTS was omitted from Proclamation 6763. Further, particular HTS additional U.S. notes implementing tariff-rate quotas (TRQs) for specified agricultural products do not clearly reflect the intended quota periods and the quantities permitted entry during such quota periods and have caused administrative difficulties. In order to make the necessary conforming change and to correct the legal notes controlling such TRQs, I have decided it is necessary and appropriate to modify a subheading in subchapter V of chapter 99 and the legal notes pertaining to such TRQs.

111 STAT. 2846

6. Presidential Proclamation 6857 of December 11, 1995, implemented with respect to the United States certain modifications to the HTS, in conformity with the obligations of the United States under the International Convention on the Harmonized Commodity Description and Coding System. The Annex to that proclamation omitted provisions that would have continued previously proclaimed staged reductions of certain rates of duty for the goods concerned, pursuant to section 111(a) of the Uruguay Round Agreements Act (URAA) (19 U.S.C. 3521(a)). To rectify these omissions, I have decided that it is necessary and appropriate to provide for the continuation of previously proclaimed duty treatment for the affected goods.

7. (a) Section 115 of the URAA (19 U.S.C. 3524) requires the President to (1) obtain advice regarding certain proposed actions; (2) submit a report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate; and (3) consult with those Committees on the proposed action during a subsequent 60-day period to meet the consultation and layover requirements of that section.

(b) Section 604 of the 1974 Act, as amended (19 U.S.C. 2483), authorizes the President to embody in the HTS the substance of the relevant provisions of that Act, and of other acts affecting import treatment, and actions thereunder, including the removal, modification, continuance, or imposition of any rate of duty or other import restriction.

8. I have decided that it is appropriate to authorize the United States Trade Representative (USTR) to perform the functions specified in section 115 of the URAA and certain functions under section 604 of the 1974 Act.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, acting under the authority vested in me by the Constitution and the laws of the United States, including but not limited to section 503 of the 1974 Act, section 213 of the CBERA, section 204 of the ATPA, section 604 of the 1974 Act, and section 301 of title 3, United States Code, do proclaim that:

(1) In order to reflect in the HTS various technical and conforming changes, to correct provisions of Proclamations 6948 and 6961, and to modify the special duty rates subcolumn for heading 9802.00.80, the HTS and Proclamations 6948 and 6961 are each modified as set forth in Annexes I and II to this proclamation.

(2) In order to modify the application of duty-free treatment under title V of the 1974 Act for certain articles, the HTS is modified as set forth in Annex III to this proclamation.

(3) The modifications to the HTS made by Annexes I, II, and III to this proclamation shall be effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after the dates set forth in such Annexes and during the time periods specified therein.

(4) The USTR is authorized to perform the functions vested in the President under section 115 of the URAA. In addition, the USTR is authorized to exercise the authority provided to the President under section 604 of the 1974 Act to embody rectifications, technical or conforming changes, or similar modifications in the HTS.

111 STAT. 2847

(5) Any provisions of previous proclamations and Executive orders that are inconsistent with the actions taken in this proclamation are superseded to the extent of such inconsistency.

IN WITNESS WHEREOF, I have hereunto set my hand this twenty-seventh day of January, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 111 STAT. 2848 ANNEX I TECHNICAL AND CONFORMING CHANGES TO THE HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES
Section A. Subchapter III of chapter 99 of the HTS is modified on the dates set forth in this section as follows: (1). Effective on November 29, 1996— (a). by deleting from the immediately superior text to subheadings 9903.96.01, 9903.96.03 and 9903.96.05, each such text beginning “If entered”, the expression “November 29,” and by inserting in lieu thereof “November 28,”; (b). by inserting in the Rates of Duty 1-Special subcolumn for subheading 9903.96.01 the duty rate “6.4¢ each (CA)”; (c). by deleting from the article description for subheading 9903.96.03 the expression “general note to” and by inserting in lieu thereof “general note 12 to”; (d). by inserting in the Rates of Duty 1-Special subcolumn for subheading 9903.96.03 the duty rate “3.2¢ each (CA)”; (e). by inserting in alphabetical sequence in the parentheses following the duty rate “Free” in the Rates of Duty 1-Special subcolumn for subheading 9903.96.05 the symbol “CA”; (f). by inserting in the Rates of Duty 1-Special subcolumn for subheading 9903.96.14 the duty rate “6.4% (CA)”; (g). by inserting in the Rates of Duty 1-Special subcolumn for subheading 9903.96.16 the duty rate “3.2% (CA)”; (h). by inserting In the Rates of Duty 1-Special subcolumn for subheadings 9903.96.15, 9903.96.17 and 9903.96.19 the duty rate “See 9906 96 01–9906 96 02 (MX)”; (i). by inserting in alphabetical sequence in the parentheses following the duty rate “Free” in the Rates of Duty 1-Special subcolumn for subheading 9903.96.18 the symbol “CA”; and (j). by deleting from the article description for subheading 9905.96.03 the expression “9603.10.50, or 9603.10.60” and inserting in lieu thereof “9903.96.01, 9903.96.03, 9903.96.14 or 9903.96.16”. (2). Effective, on January 1, 1997— (a). by deleting from the Rates of Duty 1-Special subcolumn for subheading 9903.96.01 the duty rate “6.4¢ each (CA)” and by inserting in lieu thereof “3.2¢ each (CA)”; and (b). by deleting from the Rates of Duty 1-Special subcolumn for subheading 9903.96.14 the duty rate “6.4% (CA)” and by inserting in lieu thereof “3.2% (CA)”. (3). Effective on January 1, 1998— (a). by deleting from the Rates of Duty 1-Special subcolumn for subheading 9903.96.03 the duty rate “3.2¢ each (CA)” and by Inserting in alphabetical sequence in the parentheses following the duty rate “Free” in such subcolumn for such subheading the symbol “CA”; and (b). by deleting from the Rates of Duty 1-Special subcolumn for subheading 9903.96.16 the duty rate “3.2% (CA)” and by inserting in alphabetical sequence in the parentheses following the duty rate “Free” in such subcolumn for such subheading the symbol “CA”. (4). Effective on January 1, 2005, by deleting from the Rates of Duty 1-Special subcolumn for subheading 9603.10.60 the rate of duty of “16% (MX)” and by inserting in alphabetical sequence in the parentheses following the duty rate “Free” in such subcolumn for such subheading the symbol “MX”. (5). Section B(2)(i) of the annex to Proclamation 6961 of November 28, 1996, is modified by deleting the expression “See 9906.96.01–9906.96.02 (MX) (s)” and inserting in lieu thereof “See 9906.96.01–9906.96.02 (MX)”.
Section B. Effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after January 1, 1992, the Rates of Duty 1-Special subcolumn for heading 9802.00.80 in subchapter II of chapter 98 of the HTS is modified by inserting, in the parenthetical expression following the duty rate “A duty upon the full value of the imported article, less the cost or value of such products of the United States (see U.S. note 4 of this subchapter)” the symbols “E, J,” immediately after “C,”.
111 STAT. 2849
Section C. Effective on or after October 31, 1996, U.S. note 6 to subchapter III of chapter 99 of the HTS is modified by deleting “subheadings 9903.52.00 through 9903.52.20” and by inserting “subheadings 9903.52.00 through 9903.52.26” in lieu thereof.
Section D. Effective on or after January 1, 1995, the article description for HTS subheading 9905.40.18 is modified by deleting “4012.90.20” and by inserting “4012.90.45” in lieu thereof.
Section E. For subheading 0602.90.90 of the HTS, the Rates of Duty 1-General subcolumn is modified on January 1 of each year in the table below by deleting the existing rate of duty and by inserting in lieu thereof the rate of duty specified in the table below for such year.
HTS Subheading 1997 1998 1999 2000
0602.90.90 6.2% 5.7% 5.2% 4.8%
Section F. Section A(5)(c) of Annex II to Presidential Proclamation 6948 of October 29, 1996, is modified by deleting the following text from such section: ' “Boneless (other than processed), provided for in subheadings 0201.30.80 or 0202.30.80 and the product of the European Community (Austria, Belgium, Denmark, Finland, France, the Federal Republic of Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden, and the United Kingdom):” and'.
 111 STAT. 2850 ANNEX II MODIFICATIONS TO LEGAL NOTES ESTABLISHING TARIFF-RATE QUOTAS IN THE TARIFF SCHEDULE
Section A. Additional U.S. note 2 to chapter 12 of the HTS is modified on the dates set forth in this section as follows: (1). Effective on January 1, 1997, by deleting such additional U.S. note 2 and by inserting the following new additional U.S. note in lieu thereof: “2. The aggregate quantity of peanuts entered under subheadings 1202.10.40, 1202.20.40, 2008.11.25 and 2008.11.45 during the 12-month period from April 1 in any year through the following March 31, inclusive, shall not exceed the quantities specified herein (articles the product of Mexico shall not be permitted or included under this quantitative limitation and no such articles shall be classifiable therein).
Quantity
(metric tons)
Entered in the 12-month period from April 1, 1996, through the following March 31, 1997, inclusive Entered in the 12-month period from April 1, 1997, through the following March 31, 1998, inclusive
Argentina 29,853 33,365
Other countries or areas 5,043 6.033

For the purposes of this note, imports of peanuts in the shell shall be charged against the quantities in this note on the basis of 75 kilograms for each 100 kilograms of peanuts in the shell.

Imports of peanuts under this note are subject to such regulations as may be issued by the United States Trade Representative or other designated agency."

 (2). Effective on January 1, 1998, such additional U.S. note 2 is modified by: (a). deleting “Entered in the 12-month period from April 1, 1996, through March 31, 1997, inclusive” and inserting “Entered in the 12-month period from April 1, 1997, through March 31, 1998, inclusive” in lieu thereof; (b). deleting “Entered in the 12-month period from April 1, 1997, through March 31, 1998, inclusive” and inserting “Entered in the 12-month period from April 1, 1998, through March 31, 1999, inclusive” in lieu thereof; (c). deleting the quantities “29,853” and “33,365” set out opposite “Argentina” and inserting “33,365” and “36,877” in lieu thereof; and (d). deleting the quantities “5,063” and “6,033” set out opposite “Other countries or areas” and inserting “6,033” and “7,026” in lieu thereof. (3). Effective on January 1, 1999, such additional U.S. note 2 is modified by: (a). deleting “Entered in the 12-month period from April 1, 1997, through March 31, 1998, inclusive” and inserting “Entered in the 12-month period from April 1, 1998, through March 31, 1999, inclusive” in lieu thereof; (b). deleting “Entered in the 12-month period from April 1, 1998, through March 31, 1999, inclusive” and inserting “Entered in the 12-month period from April 1, 1999, through March 31, 2000, inclusive” in lieu thereof; (c). deleting the quantities “33,365” and “36,877” set out opposite “Argentina” and inserting “36,877” and “40,388” in lieu thereof; and (d). deleting the quantities “6,033” and “7,024” set out opposite “Other countries or areas” and inserting “7,024” and “8,015” in lieu thereof. (4). Effective on January 1, 2000, such additional U.S. note 2 is modified by: (a). deleting “Entered in the 12-month period from April 1, 1998, through March 31, 1999, inclusive” and inserting “Entered in the 12-month period from April 1, 1999, through March 31, 2000, inclusive” in lieu thereof; (b). deleting “Entered in the 12-month period from April 1, 1999, through March 31, 2000, inclusive” and inserting “Entered in the 12-month period from April 1, 2000, through March 31, 2001, inclusive” in lieu thereof; (c). deleting the quantity “36,877” and “40,388” set out opposite Argentina and inserting “40,388” and “43,901” in lieu thereof; and (d). deleting the quantity “7,024” and “8,015” set out opposite Other countries or areas and inserting “8,015” and “9,005” in lieu thereof. 111 STAT. 2851 (5). Effective on January 1, 2001, such additional U.S. note 2 is modified by: (a). deleting “Entered in the 12-month period from April 1, 1998, through March 31, 1999, inclusive” and inserting “Entered in the 12-month period from April 1 in any year through March 31, inclusive” in lieu thereof; (b). deleting “Entered in the 12-month period from April 1, 1999, through March 31, 2000, inclusive” from such note; (c). deleting the quantities “40,388” and “43,901” set out opposite “Argentina” and inserting “43,901” in lieu thereof; and (d). deleting the quantities “8,015” and “9,005” set out opposite “Other countries or areas” and inserting “9,005” in lieu thereof.
Section B. Additional U.S. note 5 to chapter 52 of the HTS is modified on the dates set forth in this section as follows: (1). Effective on January 1, 1997, such additional U.S. note 5 is modified by deleting the phrase “during the 12-month period beginning September 20 in any year shall not exceed 10,837.45 metric tons” and by inserting “during the 12-month periods from September 20, 1996, through September 19, 1997, inclusive, shall not exceed 10,837.45 metric tons or from September 20, 1997, through September 19, 1998, inclusive, shall not exceed 13,179.85 metric tons” in lieu thereof. (2). Effective on January 1, 1998, such additional U.S. note 5 is modified by deleting the phrase “during the 12-month periods from September 20, 1996, through September 19, 1997, inclusive, shall not exceed 10,837.45 metric tons or from September 20, 1997, through September 19, 1998, inclusive, shall not exceed 13,179.85 metric tons" and by inserting “during the 12-month periods from September 20, 1997, through September 19, 1998, inclusive, shall not exceed 13,179.85 metric tons or from September 20, 1998, through September 19, 1999, inclusive, shall not exceed 15,522.25 metric tons" in lieu thereof. (3). Effective on January 1, 1999, such additional U.S. note 5 is modified by deleting the phrase “during the 12-month periods from September 20, 1997, through September 19, 1998, inclusive, shall not exceed 13,179.85 metric tons or from September 20, 1998, through September 19, 1999, inclusive, shall not exceed 15,522.25 metric tons” and inserting “during the 12-month periods from September 20, 1998, through September 19, 1999, inclusive, shall not exceed 15,522.25 metric tons or from September 20, 1999, through September 19, 2000, inclusive, shall not exceed 17,864.65 metric tons” in lieu thereof. (4). Effective on January 1, 2000, such additional U.S. note 5 is modified by deleting the phrase “during the 12-month periods from September 20, 1998, through September 19, 1999, inclusive, shall not exceed 15,522.25 metric tons or from September 20, 1999, through September 19, 2000, inclusive, shall not exceed 17,864.65 metric tons” and by inserting “during the 12-month periods from September 20, 1999, through September 19, 2000, inclusive, shall not exceed 17,864.65 metric tons or from September 20, 2000, through September 19, 2001, inclusive, shall not exceed 20,207.05 metric tons” in lieu thereof. (5). Effective on January 1, 2001, such additional U.S. note 5 is modified by deleting the phrase “during the 12-month periods from September 20, 1999, through September 19, 2000, inclusive, shall not exceed 17,864.65 metric tons or from September 20, 2000, through September 19, 2001, inclusive, shall not exceed 20,207.05 metric tons” and by inserting “during the 12-month period from September 20 in any year through September 19, inclusive, shall not exceed 20,207.05 metric tons” in lieu thereof.
Section C. Additional U.S. note 6 to chapter 52 of the HTS is modified on the dates set forth in this section as follows: (1). Effective on January 1, 1997, such additional U.S. note 6 is modified by deleting the phrase “during the 12-month period beginning August 1 in any year shall not exceed 1,000.0 metric tons” and by inserting “during the 12-month periods from August 1, 1996, through July 31, 1997, inclusive, shall not exceed 1,000.0 metric tons or from August 1, 1997, through July 31, 1998, inclusive, shall not exceed 1,100.0 metric tons” in lieu thereof. 111 STAT. 2852 (2). Effective on January 1, 1998, such additional U.S. note 6 is modified by deleting the phrase “during the 12-month periods from August 1, 1996, through July 31, 1997, inclusive, shall not exceed 1,000.0 metric tons or from August 1, 1997, through July 31, 1998, inclusive, shall not exceed 1,100.0 metric tons” and by inserting “during the 12-month periods from August 1, 1997, through July 31, 1998, inclusive, shall not exceed 1,100.0 metric tons or from August 1, 1998, through July 31, 1999, inclusive, shall not exceed 1,200.0 metric tons” in lieu thereof. (3). Effective on January 1, 1999, such additional U.S. note 6 is modified by deleting the phrase “during the 12-month periods from August 1, 1997, through July 31, 1998, inclusive, shall not exceed 1,100.0 metric tons or from August 1, 1998, through July 31, 1999, inclusive, shall not exceed 1,200.0 metric tons” and by inserting “during the 12-month periods from August 1, 1998, through July 31, 1999, inclusive, shall not exceed 1,200.0 metric tons or from August 1, 1999, through July 31, 2000, inclusive, shall not exceed 1,300.0 metric tons” in lieu thereof. (4). Effective on January 1, 2000, such additional U.S. note 6 is modified by deleting the phrase “during the 12-month periods from August 1, 1998, through July 31, 1999, inclusive, shall not exceed 1,200.0 metric tons or from August 1, 1999, through July 31, 2000, inclusive, shall not exceed 1,300.0 metric tons” and by inserting “during the 12-month periods from August 1, 1999, through July 31, 2000, inclusive, shall not exceed 1,300.0 metric tons or from August 1, 2000, through July 31, 2001, Inclusive, shall not exceed 1,400.0 metric tons” in lieu thereof. (5). Effective on January 1, 2001, such additional U.S. note 6 is modified by deleting the phrase “during the 12-month periods from August 1, 1999, through July 31, 2000, inclusive, shall not exceed 1,300.0 metric tons or from August 1, 2000, through July 31, 2001, inclusive, shall not exceed 1,400.0 metric tons” and by inserting “during the 12-month period from August 1 in any year through July 31, inclusive, shall not exceed 1,400.0 metric tons” in lieu thereof.
Section D. Additional U.S. note 7 to chapter 52 of the HTS is modified on the dates set forth in this section as follows: (1). Effective on January 1, 1997, such additional U.S. note 7 is modified by deleting the phrase “during the 12-month period beginning August 1 in any year shall not exceed 6,460.0 metric tons” and by inserting “during the 12-month periods from August 1, 1996, through July 31, 1997, inclusive, shall not exceed 6,460.0 metric tons or from August 1, 1997, through July 31, 1998, inclusive, shall not exceed 7,720.0 metric tons” in lieu thereof. (2). Effective on January 1, 1998, such additional U.S. note 7 is modified by deleting the phrase “during the 12-month periods from August 1, 1996, through July 31, 1997, inclusive, shall not exceed 6,460.0 metric tons or from August 1, 1997, through July 31, 1998, inclusive, shall not exceed 7,720.0 metric tons” and by inserting “during the 12-month periods from August 1, 1997, through July 31, 1998, inclusive, shall not exceed 7,720.0 metric tons or from August 1, 1998, through July 31, 1999, inclusive, shall not exceed 8,980.0 metric tons” in lieu thereof. (3). Effective on January 1, 1999, such additional U.S. note 7 is modified by deleting the phrase “during the 12-month periods from August 1, 1997, through July 31, 1998, inclusive, shall not exceed 7,720.0 metric tons or from August 1, 1998, through July 31, 1999, inclusive, shall not exceed 8,980.0 metric tons” and by inserting “during the 12-month periods from August 1, 1998, through July 31, 1999, inclusive, shall not exceed 8,980.0 metric tons or from August 1, 1999, through July 31, 2000, inclusive, shall not exceed 10,240.0 metric tons” in lieu thereof. 111 STAT. 2853 (4). Effective on January 1, 2000, such additional U.S. note 7 is modified by deleting the phrase “during the 12-month periods from August 1, 1998, through July 31, 1999, inclusive, shall not exceed 8,980.0 metric tons or from August 1, 1999, through July 31, 2000, inclusive, shall not exceed 10,240.0 metric tons" and by inserting “during the 12-month periods from August 1, 1999, through July 31, 2000, inclusive, shall not exceed 10,240.0 metric tons or from August 1, 2000, through July 31, 2001, inclusive, shall not exceed 11,500.0 metric tons" in lieu thereof. (5). Effective on January 1, 2001, such additional U.S. note 7 is modified by deleting the phrase “during the 12-month periods from August 1, 1999, through July 31, 2000, inclusive, shall not exceed 10,240.0 metric tons or from August 1, 2000, through July 31, 2001, inclusive, shall not exceed 11,500.0 metric tons” and by inserting “during the 12-month period from August 1 in any year through July 31, inclusive, shall not exceed 11,500.0 metric tons” in lieu thereof.
Section E. Additional U.S. note 8 to chapter 52 of the HTS is modified on the dates set forth in this section as follows: (1). Effective on January 1, 1997, such additional U.S. note 8 is modified by deleting the phrase “during the 12-month period beginning August 1 in any year shall not exceed 28,420.0 metric tons” and by inserting “during the 12-month periods from August 1, 1996, through July 31, 1997, inclusive, shall not exceed 28,420.0 metric tons or from August 1, 1997, through July 31, 1998., inclusive, shall not exceed 31,340.0 metric tons” in lieu thereof. (2). Effective on January 1, 1998, such additional U.S. note 8 is modified by deleting the phrase “during the 12-month periods from August 1, 1996, through July 31, 1997, inclusive, shall not exceed 28,420.0 metric tons or from August 1, 1997, through July 31, 1998, inclusive, shall not exceed 31,340.0 metric tons” and by inserting “during the 12-month periods from August 1, 1997, through July 31, 1998, inclusive, shall not exceed 31,340.0 metric tons or from August 1, 1998, through July 31, 1999, inclusive, shall not exceed 34,260.0 metric tons” in lieu thereof. (3). Effective on January 1, 1999, such additional U.S. note 8 is modified by deleting the phrase “during the 12-month periods from August 1, 1997, through July 31, 1998, inclusive, shall not exceed 31,340.0 metric tons or from August 1, 1998, through July 31, 1999, inclusive, shall not exceed 34,260.0 metric tons” and by inserting “during the 12-month periods from August 1, 1998, through July 31, 1999, inclusive, shall not exceed 34,260.0 metric tons bracketed matter or from August 1, 1999, through July 31, 2000, inclusive, shall not exceed 37,180.0 metric tons” in lieu thereof. (4). Effective on January 1, 2000, such additional U.S. note 8 is modified by deleting the phrase “during the 12-month periods from August 1, 1998, through July 31, 1999, inclusive, shall not exceed 34,260.0 metric tons or from August 1, 1999, through July 31, 2000, inclusive, shall not exceed 37,180.0 metric tons” and by inserting “during the 12-month periods from August 1, 1999, through July 31, 2000, inclusive, shall not exceed 37,180.0 metric tons or from August 1, 2000, through July 31, 2001, inclusive, shall not exceed 40,100.0 metric tons” in lieu thereof. (5). Effective on January 1, 2001, such additional U.S. note 8 is modified by deleting the phrase “during the 12-month periods from August 1, 1999, through July 31, 2000, inclusive, shall not exceed 37,180,0 metric tons or from August 1, 2000, through July 31, 2001, inclusive, shall not exceed 40,100.0 metric tons” and by inserting “during the 12-month period from August 1 in any year through July 31, inclusive, shall not exceed 40,100.0 metric tons” in lieu thereof.
111 STAT. 2854
Section F. Additional U.S. note 9 to chapter 52 of the HTS is modified on the dates set forth in this section as follows: (1). Effective on January 1, 1997, such additional U.S. note 9 is modified by deleting the phrase “during the 12-month period from September 20 in any year shall not exceed 2,135,427 kilograms” and by inserting “during the 12-month periods from September 20, 1996, through September 19, 1997, inclusive, shall not exceed 2,135,427 kilograms or from September 20, 1997, through September 19, 1998, inclusive, shall not exceed 2,435,427 kilograms” in lieu thereof. (2). Effective on January 1, 1998, such additional U.S. note 9 is modified by deleting the phrase “during the 12-month periods from September 20, 1996, through September 19, 1997, inclusive, shall not exceed 2,135,427 kilograms or from September 20, 1997, through September 19, 1998, inclusive, shall not exceed 2,435,427 kilograms” and by inserting “during the 12-month periods from September 20, 1997, through September 19, 1998, inclusive, shall not exceed 2,435,427 kilograms or from September 20, 1998, through September 19, 1999, inclusive, shall not exceed 2,735,427 kilograms” in lieu thereof. (3). Effective on January 1, 1999, such additional U.S. note 9 is modified by deleting the phrase “during the 12-month periods from September 20, 1997, through September 19, 1998, inclusive, shall not exceed 2,435,427 kilograms or from September 20, 1998, through September 19, 1999, inclusive, shall not exceed 2,735,427 kilograms” and by inserting “during the 12-month periods from September 20, 1998, through September 19, 1999, Inclusive, shall not exceed 2,735,427 kilograms or from September 20, 1999, through September 19, 2000, inclusive, shall not exceed 3,035,427 kilograms” in lieu thereof. (4). Effective on January 1, 2000, such additional U.S. note 9 is modified by deleting the phrase “during the 12-month periods from September 20, 1998, through September 19, 1999, inclusive, shall not exceed 2,735,427 kilograms or from September 20, 1999, through September 19, 2000, Inclusive, shall not exceed 3,035,427 kilograms” and by inserting “during the 12-month periods from September 20, 1999, through September 19, 2000, inclusive, shall not exceed 3,035,427 kilograms or from September 20, 2000, through September 19, 2001, inclusive, shall not exceed 3,335,427 kilograms” in lieu thereof. (5). Effective on January 1, 2001, such additional U.S. note 9 is modified by deleting the phrase “during the 12-month periods from September 20, 1999, through September 19, 2000, inclusive, shall not exceed 3,035,427 kilograms or from September 20, 2000, through September 19, 2001, inclusive, shall not exceed 3,335,427 kilograms” and by inserting “during the 12-month period from September 20 in any year through September 19, inclusive, shall not exceed 3,335,427 kilograms” in lieu thereof.
Section G. Additional U.S. note 10 to chapter 52 of the HTS is modified on the dates set forth in this section as follows: (1). Effective on January 1, 1997, such additional U.S. note 10 is modified by deleting the phrase “during the 12-month period from September 11 in any year shall not exceed 1,300 kilograms” and by inserting “during the 12-month periods from September 11, 1996, through September 10, 1997, inclusive, shall not exceed 1,300 kilograms or from September 11, 1997, through September 10, 1998, inclusive, shall not exceed 1,600 kilograms” in lieu thereof. (2). Effective on January 1, 1998, such additional U.S. note 10 is modified by deleting the phrase “during the 12-month periods from September 11, 1996, through September 10, 1997, inclusive, shall not exceed 1,300 kilograms or from September 11, 1997, through September 10, 1998, inclusive, shall not exceed 1,600 kilograms” and by inserting “during the 12-month periods from September 11, 1997, through September 10, 1998, inclusive, shall not exceed 1,600 kilograms or from September 11, 1998, through September 10, 1999, inclusive, shall not exceed 1,900 kilograms” in lieu thereof. 111 STAT. 2855 (3). Effective on January 1, 1999, such additional U.S. note 10 is modified by deleting the phrase “during the 12-month periods from September 11, 1997, through September 10, 1998, inclusive, shall not exceed 1,600 kilograms or from September 11, 1998, through September 10, 1999, inclusive, shall not exceed 1,900 kilograms” and by inserting “during the 12-month periods from September 11, 1998, through September 10, 1999, inclusive, shall not exceed 1,900 kilograms or from September 11, 1999, through September 10, 2000, inclusive, shall not exceed 2,200 kilograms” in lieu thereof. (4). Effective on January 1, 2000, such additional U.S. note 10 is modified by deleting the phrase “during the 12-month periods from September 11, 1998, through September 10, 1999, inclusive, shall not exceed 1,900 kilograms or from September 11, 1999, through September 10, 2000, inclusive, shall not exceed 2,200 kilograms” and by inserting “during the 12-month periods from September 11, 1999, through September 10, 2000, inclusive, shall not exceed 2,200 kilograms or from September 11, 2000, through September 10, 2001, inclusive, shall not exceed 2,500 kilograms” in lieu thereof. (5). Effective on January 1, 2001, such additional U.S. note 10 is modified by deleting the phrase “during the 12-month periods from September 11, 1999, through September 10, 2000, inclusive, shall not exceed 2,200 kilograms or from September 11, 2000, through September 10, 2001, inclusive, shall not exceed 2,500 kilograms” and by inserting “during the 12-month period from September 11 in any year through September 10, inclusive, shall not exceed 2,500 kilograms” in lieu thereof.
 111 STAT. 2856 ANNEX III MODIFICATIONS OF TARIFF TREATMENT UNDER THE GENERALIZED SYSTEM OF PREFERENCES IN THE HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES
Section A. Effective with respect to articles both: (i) imported on or after January 1, 1976, and (ii) entered, or withdrawn from warehouse for consumption, on or after the fifteenth day after the date of publication of this proclamation in the Federal Register. (1) General note 4(d) to the Harmonized Tariff Schedule of the United States (HTS) is modified by: (a) deleting the following HTS subheadings and the country set out opposite such subheadings:
1301.90.40 Brazil 4417.00.60 Brazil
2515.11.00 Brazil 4802.60.10 Brazil
4412.14.25 Brazil 5607.29.00 Brazil
4412.19.10 Brazil 7614.10.50 Brazil
4412.92.10 Brazil 8409.91.30 Brazil
4412.99.15 Brazil 8546.10.00 Brazil
(b) deleting the country set out opposite the following HTS subheadings:
2849.10.00 Brazil 2929.10.15 Brazil
2903.19.10 Brazil 2933.40.30 Brazil
2909.44.00 Brazil 3812.20.10 Brazil
2917.32.00 Brazil 4109.00.70 Brazil
2921.12.00 Brazil 4412.13.25 Brazil
(2) For the following HTS subheadings, in the Rates of Duty 1-Special subcolumn, delete the symbol “A*” and insert an “A” in lieu thereof.
1301.90.40 4412.92.10 5607.29.00
2515.11.00 4412.99.15 7614.10.50
4412.14.25 4417.00.60 8409.91.30
4412.19.10 4802.60.10 8546.10.00
(3) HTS subheading 6117.80.90 is superseded by the following, with bracketed - matter included to assist in the understanding of the proclaimed modification:
[Other made up clothing:]
 [Other accessories:]
  "Other:
6117.80.85    Headbands, ponytail holders and similar articles 15.2% Free (A,E*,IL) 90%
1.5% (CA)
5.2% (MX)
6117.80.95    Other 15.2% Free (E*,IL) 90%"
1.5% (CA)
5.2% (MX)
(4) HTS subheading 6217.10.90 is superseded by the following, with bracketed matter included to assist in the understanding of the proclaimed modification:
[Other made up clothing:]
 [Accessories:]
  "Other:
6217.10.85    Headbands, ponytail holders and similar articles 15.2% Free (A,E*,IL) 90%
1.5% (CA)
5.2% (MX)
6217.10.95    Other 15.2% Free (E*,IL) 90%"
1.5% (CA)
5.2% (MX)
111 STAT. 2857
Section B. Goods that were previously classifiable in HTS subheadings 6117.80.90 and 6217.10.90 (as superseded by subdivisions (3) and (4) of section A of this Annex) as headbands, ponytail holders and similar articles shall be eligible, effective with respect to (1) goods entered, or withdrawn from warehouse for consumption, on or after June 13, 1996, and before the effective date of section A of this annex, and (2) for which customs entries were unliquidated or under protest or pending other administrative action pursuant to Customs Service rules or regulations, for the duty-free treatment under the Generalized System of Preferences set forth in the special rates of duty subcolumn for HTS subheading 6117.80.85 or 6217.10.85, as appropriate, which would have applied if such goods were entered on the effective date of section A of this annex, provided that the importer requests such duty-free treatment within 60 days of the date of publication of this proclamation in the Federal Register and supplies such Information as Customs officials may request.
Section C. For the following HTS subheadings, the Rates of Duty 1-General subcolumn is modified on January 1 of each year in the table below by deleting the existing rate of duty and by inserting in lieu thereof the rate of duty specified in the table below for such year.
HTS Subheading 1998 1999 2000 2001 2002 2003 2004
6117.80.85 15.10% 15% 15% 14.90% 14.80% 14.70% 14.60%
6117.80.95 15.10% 15% 15% 14.90% 14.80% 14.70% 14.60%
6217.10.85 15.10% 15% 15% 14.90% 14.80% 14.70% 14.60%
6217.10.95 15.10% 15% 15% 14.90% 14.80% 14.70% 14.60%
Section D. For HTS subheadings 6117.80.85, 6117.80.95, 6217.10.85 and 6217.10.95, the Rates of Duty 1-Special subcolumn is modified on January 1, 1998, by deleting “1.5% (CA)” and by inserting, in alphabetical sequence, the symbol “CA” in the parentheses following “Free” rate of duty in such subcolumn.
Section E. For the following HTS subheadings, the Rates of Duty 1-Special subcolumn is modified on January 1 of each year in the table below by deleting the existing rate of duty preceding the symbol “MX” in parentheses and inserting in lieu thereof the rate of duty specified in the table below for such year.
HTS Subheading 1998 1999
6117.80.85 2.6% Free
6117.80.95 2.6% Free
6217.10.85 2.6% Free
6217.10.95 2.6% Free
6970 January 30, 1997 National African American History Month, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6970 of January 16, 1997
National African American History Month, 1997 By the President of the United States of America A Proclamation

For much of the past century, the contributions that African Americans and other minorities have made to our Nation’s progress were not fully recognized. African American History Month is an important means by which we help right that wrong. It awakens our collective social conscience to the importance of giving all of our children a complete and accurate record of their country’s history. And, perhaps most impor-111 STAT. 2858tant, it helps to reinforce America’s highest ideals—our respect for diversity, community, and freedom.

During this time of celebration and learning we are inspired by the courage, wisdom, and vision of men and women such as Frederick Douglass, Harriet Tubman, Carter G. Woodson, and Fannie Lou Hamer. These great Americans dedicated their lives to ensuring that the ideals of freedom and equality are guaranteed to all. Their noble efforts—and the efforts of those they inspired—renewed the spirit of our founding creed: “All men are created equal.” As we approach the 21st century, it is more vital than ever that we remain vigilant in protecting the ideals these visionary leaders fought so hard to uphold. We must continue to extend the circle of equality, justice, and opportunity until it embraces every American.

As we pay homage to our past, throughout the month of February and all year long, let us, with enlightened minds and emboldened hearts, continue the legacy of the civil rights movement. Let us present a diverse but united front to those who would reverse the vital progress that has been made. As the world’s beacon of hope and freedom, let us approach the new millennium keeping this vigil.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim February 1997 as National African American History Month. I call upon public officials, educators, librarians, and all the people of the United States to observe this month with appropriate ceremonies, activities, and programs that raise awareness of African American history.

IN WITNESS WHEREOF, I have hereunto set my hand this thirtieth day of January, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6971 February 1, 1997 American Heart Month, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6971 of February 1, 1997
American Heart Month, 1997 By the President of the United States of America A Proclamation

More than 700,000 men and women die each year of heart disease, making it the leading cause of death in our country. Annually, about 1.5 million Americans suffer heart attacks, one-third of which are fatal. Collectively, diseases of the heart and blood vessels claim about 960,000 American lives annually. These statistics only hint at the individual and collective tragedy brought on by heart disease and stroke and underscore the need for us to do everything possible to combat cardiovascular diseases.

Research has brought dramatic improvements to our knowledge of heart disease and how to combat it. We have learned much in recent years and now know that the processes leading to heart disease typically begin early in life and worsen over the years; symptoms often do 111 STAT. 2859not appear for decades. We also better understand the effects of genetics, gender, and lifestyle. High blood cholesterol, high blood pressure, smoking, diabetes, and obesity increase the risk of developing heart disease; physical activity can reduce the risk of suffering from cardiovascular disease, including stroke.

Additionally, research has brought improved diagnostic methods and treatments for those afflicted with heart disease. Noninvasive imaging devices can now show the heart at work inside the body, giving doctors more precise information about their patient’s condition. And new tests and therapies allow us to detect and treat a heart attack more effectively and minimize damage to the heart muscle.

These striking developments in biomedical techniques and increased public awareness and education have helped reduce the death rate from heart disease by nearly 60 percent in the past 30 years, and deaths from stroke by about 65 percent.

The Federal Government has contributed to these advances by supporting research and public education programs of the National Heart, Lung, and Blood Institute, part of the National Institutes of Health. The American Heart Association also has played a crucial role in bringing about these remarkable accomplishments through its research and education programs and the work of dedicated volunteers.

Yet much remains to be done. The incidence of obesity has risen dramatically over the past 30 years, and renewed efforts are needed to make all Americans aware of how they can lower the risks of heart disease by adopting a commonsense regimen of diet, exercise, and, in some cases, medication.

More, too, must be done to help survivors of initial heart attacks live full lives. Within six years of a heart attack, for instance, more than a third of those afflicted develop severe and often disabling chest pain. One-fourth or more of them will have another heart attack, and another fifth suffer heart failure. The challenges posed by heart disease are becoming ever more pressing as America ages and more of us live beyond age 65—the group most affected by this disease.

In the face of these daunting challenges, we Americans, acting individually and collectively, can fight heart disease and give ourselves and our families a healthy future.

In recognition of these important needs in the ongoing battle against cardiovascular disease, the Congress, by Joint Resolution approved December 30, 1963 (77 Stat. 843; 36 U.S.C. 169b), has requested that the President issue an annual proclamation designating February as “American Heart Month.”

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim February 1997, as American Heart Month. I invite the Governors of the States, the Commonwealth of Puerto Rico, officials of other areas subject to the jurisdiction of the United States, and the American people to join me in reaffirming our commitment to combating cardiovascular disease and stroke.

IN WITNESS WHEREOF, I have hereunto set my hand this first day of February, in the year of our Lord nineteen hundred and ninety-111 STAT. 2860seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6972 February 8, 1997 National Child Passenger Safety Week, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6972 of February 8, 1997
National Child Passenger Safety Week, 1997 By the President of the United States of America A Proclamation

Children are our Nation’s most precious gift, and one of our most profound responsibilities is protecting their health, well-being, and safety. Nowhere is this duty more critical than on America’s streets and highways.

Automobile accidents are the leading cause of death for America’s young people. It is tragic that a high proportion of these deaths could be prevented, but are not. For example, we know that seat belts save lives—last year they prevented the deaths of almost 10,000 Americans—and, yet, many still fail to wear them.

I encourage all Americans to take a few simple steps to ensure that their families travel safely. The most important rule is also the simplest: The safest place for children is the back seat. Also, parents and guardians must always make sure that children are secured, either in a locked seat belt or in an appropriate child safety seat.

I commend the Department of Transportation for its “Patterns for Life” program, begun in 1996 to focus attention on correct child safety seat use and the proper positioning of children and their safety seats away from air bags. Working through national safety organizations and State public safety and highway offices, this program offers a network of qualified child passenger safety trainers to provide communities with the valuable resources they need to reduce motor vehicle-related deaths and injuries.

Laws exist in every State and the District of Columbia that require proper restraints for younger children. However, 40 percent of our children under five are still not properly restrained. We must do better to enforce the existing laws and protect our precious cargo.

The steps we take now will make our roads safer and our children more secure. My Administration is striving to increase the use of seat belts throughout the Nation. We are also working with automobile makers, car dealers, private organizations, and insurance companies to teach parents how to install child safety seats properly, and new technologies will eventually make air bags safer for children.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim February 9 through February 15, 1997, as National Child Passenger Safety Week. I urge all Americans to help reduce injuries and the tragic loss of life on our highways by buckling up every child in an approved restraint, in the vehicle’s back seat. And let us all help spread these important 111 STAT. 2861child safety messages throughout our communities. By doing so, we can save many young lives.

IN WITNESS WHEREOF, I have hereunto set my hand this eighth day of February, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6973 February 24, 1997 American Red Cross Month, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6973 of February 24, 1997
American Red Cross Month, 1997 By the President of the United States of America A Proclamation

Founded over a century ago by Clara Barton, the American Red Cross has evolved from a branch of the International Red Cross into a uniquely American institution, serving our Nation in peace and in war, and through countless natural disasters. Since the Spanish-American War, when the first volunteers brought emergency first-aid and news from home to wounded soldiers, generations of Americans have followed in this grand tradition of service.

Today, in communities across our Nation, a million and a half volunteers stand ready to help their neighbors at a moment’s notice. Last year. Red Cross paid and volunteer staff assisted disaster victims across the country by opening more than 3,200 shelters and giving comfort to 172,000 people. The Red Cross also reached 16 million Americans through health and safety courses, including HIV and AIDS education and community outreach programs; collected more than 6 million units of lifesaving blood to keep our national blood supply ready, strong, and safe; and provided immediate counseling and support to the bereaved families of the victims of TWA Flight 800 and Valujet Flight 592.

Overseas, American Red Cross workers provided emergency communications for our troops in Bosnia; worked with foreign Red Cross societies to rebuild the lives of civilian refugees in places such as the former Yugoslavia and Rwanda; and provided personnel, financial aid, and gifts of goods and services to the victims of international disasters and armed conflicts in every comer of the globe.

Since 1881, the size, scope, and complexity of major disasters have placed an ever-greater demand on the resources of the Red Cross. Yet, the generosity of our citizens has enabled the American Red Cross to continue to fulfill its humanitarian mission, providing assistance to those in need and easing suffering around the world. We must continue this tradition, and, in the spirit of service, support this voluntary agency because it truly belongs to all Americans. Each of us can help keep the American Red Cross strong through our donations of time, money, and blood.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America and Honorary Chairman of the American Red Cross, by virtue of the authority vested in me by the Constitution and laws 111 STAT. 2862of the United States, do hereby proclaim March 1997 as American Red Cross Month. I urge all the people of the United States to support the humanitarian work of their local Red Cross chapters by volunteering and participating in Red Cross blood drives.

IN WITNESS WHEREOF, I have hereunto set my hand this twenty-fourth day of February, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6974 February 27, 1997 Irish-American Heritage Month, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6974 of February 27, 1997
Irish-American Heritage Month, 1997 By the President of the United States of America A Proclamation

Throughout the history of the United States, from the founding of our republic to the modem spread of our cultural influence around the globe, American life has been enriched continuously by the contributions of Irish Americans.

Although thousands of immigrants from Ireland had already come to America before the signing of the Declaration of Independence, the largest number emigrated from their homeland in the middle of the 19th century, when devastating famine overtook their native Ireland. Many moved into our cities, where their hard work helped American industries, their political skills energized local government, and their culture added richness to urban neighborhoods. Others, freshly arrived from Cork, Kilkenny, or Belfast, kept moving all the way to the American West. Wherever they went, they added their muscle to the building of our railroads, bridges, tunnels, and canals, and they applied their minds to the shaping of American law and letters. And their values were exemplified by a firm confidence in education, a dedication to the work ethic, and a deep belief in God.

America offered these new citizens abundant opportunities and the freedom to exercise their talents in a country that was still less than 100 years old. In return. Ireland added immensely to the American national character. This month, when communities all across the Nation celebrate St. Patrick’s Day, we honor the millions of Americans who trace their lineage to Ireland.

Our country has been blessed by the rich legacy of famous Americans whose ancestors emigrated to our shores from Ireland. Georgia O’Keefe, Edgar Allen Poe, and F. Scott Fitzgerald are just a few among the many whose talents have graced the arts. Andrew Mellon and Henry Ford excelled in business and finance. Will Rogers, Spencer Tracy, Bing Crosby, and John Wayne have entertained us. Pierce Butler signed the Constitution, General Douglas MacArthur led the Allied Forces in the Pacific during World War II, and Sandra Day O’Connor became the first woman to sit on our Supreme Court.

But let us not forget the sacrifices, dedication, and profound achievements of the thousands of less well-known Irish Americans who have 111 STAT. 2863labored to make the United States a country of which we all can be proud. They were—and continue to be—motivated by their deep commitment and fervent loyalty to family, friends, community, and country. This month we honor them and thank them for their efforts.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim March 1997 as Irish-American Heritage Month. I call upon all the people of the United States to observe this month with appropriate ceremonies, activities, and programs.

IN WITNESS WHEREOF, I have hereunto set my hand this twenty-seventh day of February, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6975 March 3, 1997 Women’s History Month, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6975 of March 3, 1997
Women’s History Month, 1997 By the President of the United States of America A Proclamation

Throughout the history of our Nation, women have played a pivotal role in bringing about positive change to every aspect of American life, and their achievements continue to touch the lives of every single citizen. Women's History Month honors the women who made these accomplishments possible, securing their rightful place in history among those who have made our country great. This month, we celebrate these women’s lives—and renew our commitment to breaking down the gender barriers that still exist.

Through their courage, foresight, and community spirit over the years, American women have created a world of opportunity for today’s heroines and role models—women such as Secretary of State Madeleine Albright, the highest ranking woman to serve in any presidential administration; Dr. Shannon W. Lucid, who has performed five historic and complex Space Shuttle missions during 18 years with NASA and recently broke the American and women’s world record for continuous time in space; Oseola McCarty, who in 1995 donated the life savings she had earned as a maid to fund scholarships at the University of Mississippi; and Julie Su, the young attorney who first came to prominence through her efforts to expose illegal exploitation of Thai immigrants in a California sweatshop and who continues to help immigrants to secure proper medical care, employment, and the dignity they deserve. The pioneers in women’s history would be proud of today’s women pioneers.

As we approach the 21st century, we have reached another significant milestone in our Nation’s history: Women have approached an almost equal share in the labor force. Thus, it is more important than ever that we enable women and men to meet their responsibilities at work and at home.

111 STAT. 2864

Women continue to break the glass ceiling, changing their status from employee to employer. Today, women-owned businesses are creating one out of every four jobs in the United States. From the classroom to the board room, women now occupy every part of the work force, building the kinds of lives for themselves and their families that are the heart of the American Dream.

Women’s History Month provides Americans with an opportunity to celebrate the contributions of all the women who have enriched our Nation, to honor their legacy, and to reflect upon what we can all do to end discrimination against women. I encourage all Americans to learn from, and share information about, women’s history in their workplaces, classrooms, and family rooms. As every family has its own heroes, so does our country. Only by studying the history of America’s women can we fully understand the history of America.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States of America, do hereby proclaim March 1997, as Women’s History Month. I ask educators, Government officials, and all citizens to observe this month with appropriate programs, ceremonies, and activities, remembering not only this month but also every month the many different contributions that women make every day.

IN WITNESS WHEREOF, I have hereunto set my hand this third day of March, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6976 March 3, 1997 Save Your Vision Week, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6976 of March 3, 1997
Save Your Vision Week, 1997 By the President of the United States of America A Proclamation

Our eyes are our windows to the world. They give us the freedom to gaze at a sunset, read a book, or drive a car. Our sight allows us to jog along a garden pathway or enjoy a panoramic view.

All of us need to care for our vision, but older Americans in particular should be aware of their susceptibility to eye disease. As the “baby boom” generation ages, it is critical that these Americans receive regular eye examinations from eye-care professionals.

A thorough exam can lead to early detection and control or cure of eye diseases such as glaucoma, cataract, and diabetic retinopathy. A professional eye exam can also diagnose age-related macular degeneration (AMD), a leading cause of severe visual impairment and blindness in the United States. This common disease affects the retina, the part of the eye that helps to produce sharp, central vision required for activities such as reading and driving. AMD causes a loss of this clear, central vision; in some cases, vision loss is rapid and dramatic. The risk of AMD dramatically increases after age 60. It is estimated that this dis-111 STAT. 2865ease already causes visual impairment in approximately 1.7 million of the 34 million Americans now older than 65. As these numbers continue to grow, researchers are working to find the cause of, and develop treatment for, this debilitating disease.

People with AMD and its accompanying visual impairment often cannot perform daily activities such as reading the newspaper, preparing meals, or recognizing faces of friends. The inability to see well affects routine activities and social interactions and can lead to a loss of independence.

However, low-vision services and devices can greatly improve the quality of life for visually impaired patients and help them maintain their independence. Devices such as hand-held magnifiers, computer monitors with large type, and large-print newspapers and books can help the visually impaired dramatically improve their quality of life. To remind Americans of the importance of protecting their eyesight, the Congress, by joint resolution approved December 30, 1963 (77 Stat. 629; 36 U.S.C. 169a), has authorized and requested the President to proclaim the first week in March of each year as “Save Your Vision Week.”

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim March 2 through March 8, 1997, as Save Your Vision Week. Our eyes play a vital role in our independence and daily living and need to be examined regularly. Let us recognize the work done by vision researchers across our Nation on AMD and other eye diseases and the efforts they are making to enhance and retain our precious sight. Education on good vision starts with us, and we should take progressive steps to protect our eyes.

IN WITNESS WHEREOF, I have hereunto set my hand this third day of March, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6977 March 5, 1997 National Poison Prevention Week, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6977 of March 5, 1997
National Poison Prevention Week, 1997 By the President of the United States of America A Proclamation

This year, as we observe National Poison Prevention Week, we highlight two achievements: the effectiveness of child-resistant packaging required by the U.S. Consumer Product Safety Commission (CPSC) and the lifesaving work of the Nation’s poison control centers. These public health efforts have reduced childhood poisoning deaths from 450 deaths in 1961 to 50 deaths in 1993. However, according to the American Association of Poison Control Centers, over one million children each year are exposed to potentially poisonous medicines and household chemicals.

Virtually all poisonings are preventable, and we must continue to inform parents, grandparents, and caregivers how to prevent childhood 111 STAT. 2866poisonings. The Poison Prevention Week Council, a coalition of 39 national organizations determined to stop accidental poisonings, distributes valuable information used by poison control centers, pharmacies, public health departments, and others to conduct poison prevention programs in their communities.

Simple safety measures—such as correctly using child-resistant packaging and keeping potentially harmful substances locked away from children—can save lives. And if a poisoning occurs, a poison control center can offer quick and lifesaving intervention.

The CPSC requires child-resistant packaging for many medicines and household chemicals. A recent CPSC study showed that every year approximately 24 children’s lives are saved by child-resistant packaging for oral prescription medicines. The CPSC recently took action to ensure that child-resistant packaging will be easier for adults to use as well. This, in turn, will increase the use of child-resistant packaging, preventing more poisonings.

To encourage Americans to learn more about the dangers of accidental poisonings and to take more preventive measures, the Congress, by joint resolution approved September 26, 1961 (75 Stat. 681), has authorized and requested the President to issue a proclamation designating the third week of March of each year as “National Poison Prevention Week.”

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim March 16 through March 22, 1997, as National Poison Prevention Week. I call upon all Americans to observe this week by participating in appropriate ceremonies and activities and by learning how to prevent accidental poisonings among children.

IN WITNESS WHEREOF, I have hereunto set my hand this fifth day of March, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6978 March 7, 1997 National Older Workers Employment Week, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6978 of March 7, 1997
National Older Workers Employment Week, 1997 By the President of the United States of America A Proclamation

American workers age 55 and older represent one of our country’s richest resources, and the value of their potential contribution to our society is immense. An estimated 70 percent of all Americans age 55 and older already actively contribute to our common good—by working, by volunteering, and by caring for sick and disabled relatives, friends, and neighbors.

Despite their qualifications, however, many of these Americans experience serious difficulty finding work if they lose a job or desire new employment. Their search for employment can become increasingly challenging as they grow older.

111 STAT. 2867

Our laws and government agencies can—and do—offer protections, programs, and services for older workers. The Age Discrimination Act, the Older Americans Act, and the Age Discrimination in Employment Act all recognize the unique rights of such employees, and the Department of Labor alone helps thousands of workers each year through efforts such as the Senior Community Service Employment Program.

But it is up to employers also to recognize the potential of older Americans as employees—to recognize that by every common measure of job performance, older workers are as effective as younger people because of their unique skills, experiences, and judgment. And, it is appropriate that we designate a week to acknowledge that all workers should be judged and employed on the basis of their individual ability to do a job, regardless of age.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim March 9 through March 15, 1997, as National Older Workers Employment Week, and I urge all employers when they hire new workers to consider carefully the skills and other qualifications of men and women age 55 and older. I also encourage public officials responsible for job placement, training, and related services to intensify their efforts throughout the year to help older workers locate available jobs and training.

IN WITNESS WHEREOF, I have hereunto set my hand this seventh day of March, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6979 March 25, 1997 Greek Independence Day: A National Day of Celebration of Greek and American Democracy, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6979 of March 25, 1997
Greek Independence Day: A National Day of Celebration of Greek and American Democracy, 1997 By the President of the United States of America A Proclamation

Today, the Greek people and the Hellenic Republic will celebrate the 176th anniversary of the beginning of their struggle for independence.

On this day, it is fitting that we reflect on the enormous contributions the Greek people have made to the modern world. The legacy of the ancient Greeks, in the fields of philosophy, literature, drama, sculpture, and architecture, continues to influence our beliefs, our values, and our concept of art. And, after more than 2,000 years, the ideology of Greece—as embodied in the concept of democracy—is still the ideal that guides us in charting our course for the future.

Greek ideology had a profound effect on our Founding Fathers, who molded the American form of government based upon the principles of Greek democracy. Thomas Jefferson studied the Greek classics in his youth and was inspired by their philosophy throughout his life, most dramatically when he crafted the Declaration of Independence. When 111 STAT. 2868formulating his vision for this country, Jefferson specifically referred to the integrated assertions, theories, and aims of the classic Greek world.

Our admiration for Greece continues into the modern day, and we salute its commitment to democracy, to peace, and to a united and stable Europe. We share a partnership with Greece in NATO, and our countries are linked forever by close family relationships between our peoples. Our Nation looks forward to working closely with Greece in the coming years as we examine ways to bring full peace, stability, and prosperity to all the nations of Europe and the world.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim March 25, 1997, as Greek Independence Day: A National Day of Celebration of Greek and American Democracy. I call upon all Americans to observe this day with appropriate ceremonies, activities, and programs.

IN WITNESS WHEREOF, I have hereunto set my hand this twenty-fifth day of March, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6980 April 1, 1997 Cancer Control Month, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6980 of April 1, 1997
Cancer Control Month, 1997 By the President of the United States of America A Proclamation

In observing Cancer Control Month, we reaffirm our national commitment to fighting this deadly disease. Since the signing of the National Cancer Act in 1971, we as a Nation have made significant strides in combating many forms of cancer. In November 1996, the National Cancer Institute (NCI) announced that the cancer death rate in the United States fell by nearly 3 percent between 1991 and 1995, the first sustained decline since national record-keeping began in the 1930s. The declines in lung, colorectal, and prostate cancer deaths in men, and breast and gynecologic cancer deaths in women, reflect the progress we have made in prevention, early detection, and treatment. However, we recognize how much work must still be done to control and eliminate this disease.

Perhaps one of the most promising achievements of cancer research this past year is in our increased understanding of cancer genetics. We have learned that cancer is a disease of altered genes and altered gene function. Researchers are making great progress in identifying genes whose dysfunction leads to cancer. Our research into the relationship between genetics and cancer also is helping us to better understand the basis for many other diseases and will strengthen our ability to intervene against them. If we are to continue this remarkable progress, we must keep scientific research as a fundamental priority.

Research has already taught us that smoking directly causes lung cancer and markedly increases a person’s risk of developing cancers of the 111 STAT. 2869pancreas, esophagus, uterus, cervix, mouth, throat, and bladder. We know that many of the deaths from these cancers are preventable. Over the last several years, positive trends have emerged: Business, industry, and all levels of government have established smoke-free policies, and per-capita cigarette consumption has declined by 37 percent over the past two decades.

Reasons for deep concern remain, however. More than 3,000 teenagers become regular smokers each day in the United States. We must do all we can to help our children understand the consequences of smoking, and we must set a good example ourselves by not smoking. Last year, in an important step forward, the Food and Drug Administration (FDA) proposed restrictions on the advertising, marketing, and sales of cigarettes to minors. In February of this year, I was proud to announce that the first part of those rules went into effect.

We are also learning more about the relationship between diet and cancer risk, and we are gaining insight into the role of dietary supplements in reducing certain types of cancer. We know that by improving our diet—reducing fat and increasing the amount of fiber—we reduce our risk of cancer. The NCI, in collaboration with the food industry, sponsors the national 5-A-Day Program, which encourages Americans to eat five servings of fruit and vegetables each day.

We are taking other important steps, as well. Federal agencies are working together to ensure that potentially active drugs move quickly from discovery to clinical use. To reduce the number of cancer deaths and new cases, and to help cancer patients survive longer and live better lives, several Federal agencies are working with State and local health departments to develop and implement national plans for breast and cervical cancer screening and to promote cancer prevention. I was pleased to announce last week that my Administration is launching a major public education campaign to make sure that every woman and every health care professional in America is aware of the NCI’s new recommendations that women between the ages of 40 and 49 should get a mammography examination for breast cancer every one or two years. The Medicare budget that I just submitted to the Congress will cover the expense of these annual exams, and we are urging State Medicaid directors to cover annual mammograms as well, with the assurance that the Federal Government will pay its matching share if they do so.

As we commemorate this special month, I ask health care professionals, private industry, community groups, insurance companies, and all other interested organizations and individual citizens to unite to publicly reaffirm our Nation’s continuing commitment to controlling cancer. In 1938, the Congress of the United States passed a joint resolution requesting the President to issue an annual proclamation declaring April as “Cancer Control Month.”

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim April 1997, as Cancer Control Month. I invite the Governors of the 50 States and the Commonwealth of Puerto Rico, the Mayor of the District of Columbia, and the appropriate officials of all other areas under the American flag to issue similar proclamations.

IN WITNESS WHEREOF, I have hereunto set my hand this first day of April, in the year of our Lord nineteen hundred and ninety-seven, 111 STAT. 2870and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6981 April 1, 1997 National Child Abuse Prevention Month, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6981 of April 1, 1997
National Child Abuse Prevention Month, 1997 By the President of the United States of America A Proclamation

We live in a Nation blessed with liberty and prosperity. Yet, many of our children still suffer the horrors of child abuse and neglect, knowing no happiness, and sometimes even losing their lives. And, it is a problem that grows worse. Last year, the U.S. Department of Health and Human Services reported that an estimated 3 million American children were abused or neglected, twice as many as 5 years earlier. Almost half a million of our children were seriously injured because of this mistreatment, quadruple the number from the previous report. Tragically, more than 1,100 abused children died last year—an incomprehensible 80 percent of them at the hands of their own parents. We must not let this senseless suffering continue.

My Administration is continuing its efforts to make our children safer. Already, we have developed new family-based prevention services to work with families at risk, and we have said to those who would prey on our children in public housing that one conviction for drug dealing or a violent crime will result in expulsion from public housing. We are working to establish a national registry for sexual predators, and we have preserved the Federal investment in child protective services so States have the resources to help children in danger. We have taken guns off the street by banning 19 deadly assault weapons, and we are putting 100,000 more police officers on the streets to patrol our neighborhoods. And my Administration has developed a plan that aims, by the year 2002, to double the number of children placed in adoption or permanent placements from the public foster care system.

Dining this month of April, we pause to recognize and praise the work of those parents and other caretakers who see that the physical, mental, emotional, educational, and medical needs of our children are adequately met. I commend the efforts of the dedicated and compassionate men and women who assist families in crisis and enable these families to prevent child abuse. Without the commitment, knowledge, and skill of these men and women, many more children would find themselves the victims of abuse and the lives of many children who are abused and neglected would never improve. With their involvement, the lives of our most vulnerable children are immeasurably enriched. This month reminds us that every child is entitled to live his or her life to its fullest, free from fear and want. As Thomas Jefferson stated so eloquently, “The Giver of life gave it for happiness and not for wretchedness.” We hold our children's future in trust. Let us not fail them.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim April 1997 111 STAT. 2871as National Child Abuse Prevention Month. I call upon all Americans to observe this month by demonstrating our respect and gratitude for those who devotedly and unselfishly work to keep children safe, by learning how we can help keep children from harm’s way, and by taking responsible actions to protect our precious children.

IN WITNESS WHEREOF, I have hereunto set my hand this first day of April, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6982 April 1, 1997 To Implement an Agreement To Eliminate Tariffs on Certain Pharmaceuticals and Chemical Intermediates Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6982 of April 1, 1997
To Implement an Agreement To Eliminate Tariffs on Certain Pharmaceuticals and Chemical Intermediates By the President of the United States of America A Proclamation

1. On December 13, 1996, members of the World Trade Organization (WTO), including the United States and 16 other major trading countries, announced in the WTO Singapore Ministerial Declaration an agreement to eliminate tariffs on certain pharmaceuticals and chemical intermediates that were the subject of reciprocal duty elimination negotiations during the Uruguay Round of multilateral trade negotiations (“Uruguay Round”). In addition, it was agreed that the agreement on pharmaceutical products reached at the conclusion of the Uruguay Round and consequently Schedule XX—United States of America, annexed to the Marrakesh Protocol to the General Agreement on Tariffs and Trade (1994) (“Schedule XX”) erroneously included 25 products.

2. (a) Section 111(b) of the Uruguay Round Agreements Act (URAA) (19 U.S.C. 3521(b)) authorizes the President to proclaim the modification of any duty or staged rate reduction of any duty set forth in Schedule XX for products that were the subject of reciprocal duty elimination negotiations during the Uruguay Round if the United States agrees to such action in a multilateral negotiation under the auspices of the WTO and after compliance with the consultation and layover requirements of section 115 of the URAA (19 U.S.C. 3524). Section 111(b) also authorizes the President to proclaim such modifications as are necessary to correct technical errors in Schedule XX or to make other rectifications to the Schedule.

(b) Section 111(a) of the URAA (19 U.S.C. 3521(a)) authorizes the President to proclaim such additional duties as the President determines to be necessary or appropriate to carry out Schedule XX.

3. Section 604 of the Trade Act of 1974 (1974 Act), as amended (19 U.S.C. 2483), authorizes the President to embody in the Harmonized Tariff Schedule of the United States (HTS) the substance of the relevant provisions of that Act, and of other acts affecting import treatment, and actions thereunder, including the removal, modification, continuance, or imposition of any rate of duty or other import restriction.

111 STAT. 2872

4. (a) Pursuant to section 111(b) of the URAA, I have determined that modifications to Schedule XX are necessary and that Schedule XX should be modified accordingly. In addition. I have determined to modify the HTS to implement the multilateral agreement on pharmaceuticals negotiated under the auspices of the WTO.

(b) Pursuant to section 111(a) of the URAA. I have determined that it is necessary or appropriate to modify the HTS to increase tariffs on products that were included erroneously in the pharmaceuticals agreement reached at the end of the Uruguay Round.

(c) On January 29, 1997, pursuant to section 115 of the URAA, the United States Trade Representative (USTR) submitted a report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate (“the Committees”) that set forth the proposed tariff eliminations and corrections in existing tariff treatment, together with the advice received from the appropriate private sector advisory committee and the U.S. International Trade Commission regarding such actions. During the 60-day period thereafter, the USTR consulted with the Committees on the proposed tariff eliminations and corrections.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, acting under the authority vested in me by the Constitution and the laws of the United States, including but not limited to sections 111(a) and (b) of the URAA and section 604 of the 1974 Act, do hereby proclaim that:

(1) In order to implement the multilateral agreement negotiated under the auspices of the WTO to eliminate tariffs on certain pharmaceutical products and chemical intermediates, and to correct errors, Schedule XX and the pharmaceutical appendix to the HTS are modified as set forth in the Annex to this proclamation.

(2) The modifications to the HTS set forth in this proclamation shall be effective as provided in the Annex to this proclamation.

(3) Any provisions of previous proclamations and Executive orders that are inconsistent with the actions taken in this proclamation are superseded to the extent of such inconsistency.

IN WITNESS WHEREOF, I have hereunto set my hand this first day of April, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 111 STAT. 2873 Annex Modifications to the Harmonized Tariff Schedule of the United States ("HTS")

Effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after April 1, 1997.

Section A. For subheading 2833.29.50, the Rates of Duty 1 Special subcolumn is modified by inserting, in alphabetical order, the symbol “K,” in the parentheses following the “Free” rate of duty in such subcolumn.
Section B. The Pharmaceutical Appendix (“the Appendix”) to the Harmonized Tariff Schedule of the United States (“HTS”) is modified as provided in this section. (1). Table 1 of the Appendix is modified by— (a). changing the CAS number for the following product:
Product New Number Old Number
CICLESONIDE 141845-82-1 126544-47-6
(b). deleting the following products and their CAS numbers:
Product CAS Number Product CAS Number
BENZYL ALCOHOL 100-51-6 NORFLURANE 811-97-2
CALCIUM CARBIMIDE 156-62-7 PEGOTERATE 25038-59-9
CARBOMER 54182-57-9 PIMAGEDINE 79-17-4
CARMELLOSE 9000-11-7 POLICAPRAM 25038-54-4
CHOLINE CHLORIDE 67-48-1 POLITEF 9002-84-0
DIMETICONE 9006-65-9 PYROXYLIN 9004-70-0
GLUTAMIC ACID 56-86-0 THIODIGLYCOL 111-48-8
GLYCINE 56-40-6 THREONINE 72-19-5
HYPROMELLOSE 9004-65-3 TRICHLOROETHYLENE 79-01-6
LINDANE 58-89-9 TRYPTOPHAN 73-22-3
LYSINE 56-87-1 TYLOXAPOL 25301-02-4
MACROGOL 25322-68-3 ZINC ACETATE, BASIC 82279-57-0
MACROGOL ESTER
(c). deleting the chemical name in column A and inserting the chemical name in column B in lieu thereof:
Column A Column B
ADITOPRIME ADITOPRIM
BROMOCYCLEN BROMOCICLEN
CARBAZOCHROME SODIUM SULPHONATE CARBAZOCHROME SODIUM SULFONATE
CORTICOTROPIN-ZINC HYDROXIDE CORTICOTROPIN ZINC HYDROXIDE
ETAMIPHYLLIN ETAMIPHYLLINE
FLOCALCITRIOL FALECALCITRIOL
FOMEPIZOL FOMEPIZOLE
FROPENEM FAROPENEM
GLIPENTIDE GLISENTIDE
ISEPAMICINE ISEPAMICIN
POLYVIDONE POVIDONE
SARMOXILLIN SARMOXICILLIN
(d). adding the following new INNs, in alphabetical order, along with their CAS numbers:
Product CAS Number Product CAS number
APCIXIMAB 143653-53-6 APTIGANEL 137159-92-3
ABITESARTAN 137882-98-5 ARTEFLENE 123407-36-3
ACITAZANCLAST 114607-46-4 ATEXAKIN ALFA 143631-61-2
ADATANSERIN 127266-56-2 ATIBEPRONE 153420-96-3
ADEFOVIR 106941-25-7 ATORVASTATIN 134523-00-5
ADELMIDRCL 1675-66-7 AZALANSTAT 143393-27-5
AFELIMOMAB 156227-98-4 AZIMILIDE 149908-53-2
AFCVIRSEN 151356-08-0 BALAZIPONE 137109-71-8
AGLEPRISTONE 124478-60-0 BALOFLOXACIN 127294-70-6
ALMAGODRATE CASIFUNGIN 127785-64-2
ALNESPIRONE 138298-79-0 BATIMASTAT 130370-60-4
ALNIDITAN 152317-89-0 BERUPIPAM 150490-85-0
ANAKINRA 143090-92-0 BERVASTATIN 132017-01-7
ANASTROZOLE 120511-73-1 BESIPIRDINE 119257-34-0
ANTITHROMBIN III, HUMAN 9000-94-6 BETASIZOFIRAN 39464-87-4
APAXIFYLLINE 151581-23-6 BICALUTAMIDE 90357-06-5
111 STAT. 2874
Product CAS Number Product CAS number
BISNAFIDE 144849-63-8 IPIDACRINE 62732-44-9
BIVALIRUDIN 128270-60-0 IRALUKAST 151581-24-7
BOSENTAN 147536-97-8 IRBESARTAN 138402-11-6
CANDESARTAN 139481-59-7 ITAMELINE 121750-57-0
CANDOCURONIUM IODIDE 54278-85-2 LAFLUNIMUS 147076-36-6
CAPECITABINE 154361-50-9 LAFUTIDINE 118288-08-7
CAPROMAB 151763-64-3 LAMIFIBAN 144412-49-7
CARTASTEINE 149079-51-6 LANPERISONE 116287-14-0
CEFLUPRENAM 116853-25-9 LANPROSTON 105674-77-9
CEFOSELIS 122841-10-5 LAURCETIUM BROMIDE 1794-75-8
CERTOPARIN SODIUM LEDISMASE 149394-67-2
CIDOFOVIR 113852-37-2 LENAPENEM 149951-16-6
CILMOSTIM 148637-05-2 LENERCEPT 156679-34-4
CINALUKAST 128312-51-6 LEPIRUDIN 138068-37-8
CIPAMFYLLINE 132210-43-6 LETROZOLE 112809-51-5
CISATRACURIUM BESILATE 96946-42-8 LEVORMELOXIFENE 78994-23-7
COLESTILAN 95522-45-5 LEVOSEMOTIADIL 116476-16-5
CROMOGLICATE LISETIL 110816-79-0 LEXACALCITOL 131875-08-6
CROSPOVIDONE 9003-39-8 LEXIPAFANT 139133-26-9
DACLIXIMAB 152923-56-3 LIREQUINIL 143943-73-1
DAPABUTAN 6582-31-6 LISOFYLLINE 100324-81-0
DARIFENACIN 133099-04-4 LOBUCAVIR 127759-89-1
DARSIDOMINE 137500-42-6 LOVIRIDE 147362-57-0
DELAVIRDINE 136817-59-9 LUBELUZOLE 144665-07-6
DELEQUAMINE 119905-05-4 LUTROPIN ALFA 152923-57-4
DENOTIVIR 51287-57-1 MANGAFOOIPIR 155319-91-8
DESIRUDIN 120993-53-5 MAPINASTINE 140945-32-0
DETUMOMAB 145832-33-3 MAZAPERTINE 134208-17-6
DEXECADOTRIL 112573-72-5 MIBEFRADIL
DEXKETOPROFEN 22161-81-5 116644-53-2
DEXPEMEDOLAC 114030-44-3 MINOLTEPARIN SODIUM
DIMADECTIN 156131-91-8 MIPITROBAN 136122-46-8
DOMITROBAN 112966-96-8 MIRISETRON 135905-89-4
DORNASE ALFA 143831-71-4 MOBENAKIN 124146-64-1
EBALZOTAN 149494-37-1 MOFAROTENE 125533-88-2
EFEGATRAN 105806-65-3 MONTELUKAST 158966-92-8
EFLETIRIZINE 150756-35-7 MONTEPLASE 156616-23-8
ELISARTAN 158682-68-9 MOROCTOCOG ALFA
ELOPIPRAZOLE 115464-77-2 MUPLESTIM 148641-02-5
EMIDELTIDE 62568-57-4 MUROMONAB-CD3
ENLIMOMAB 142864-19-5 NACOLOMAB TAFENATOX 150631-27-9
EPOETIN EPSILON 154725-65-2 NADROPARIN CALCIUM
EPOETIN OMEGA 148363-16-0 NAPITANE 148152-63-0
EPRINOMECTIN 123997-26-2 NAPSAGATRAN 154397-77-0
EPROSARTAN 133040-01-4 NATEPLASE 159445-63-3
EPTACOG ALFA (ACTIVATED) 102786-52-7 NEMORUBICIN 108852-90-0
ERBULOZOLE NETIVUDINE 84558-93-0
ERSENTILIDE 125279-79-0 NICANARTINE 150443-71-3
EXAMORELIN 140703-51-1 NICOTREDOLE 29876-14-0
FENLEUTON 141579-54-6 NUPAFANT 139133-27-0
FIBRIN, BOVINE OCINAPLON 96604-21-6
FIBRIN, HUMAN OCTOCOG ALFA 139076-62-3
FODIPIR 118248-91-2 ODULIMOMAB 159445-64-4
FOLLITROPIN ALFA 9002-68-0 OLOPATADINE 113806-05-6
FOZIVUDINE TIDOXIL 141790-23-0 OLPADRONIC ACID 63132-39-8
FRADAFIBAN 148396-36-5 OLPRINONE 106730-54-5
FULADECTIN ONTAZOLAST 147432-77-7
GADOVERSETAMIDE 131069-91-5 ORIENTIPARCIN 159445-62-2
GADOXETIC ACID 135326-11-3 OXECLOSPORIN 135548-15-1
GALDANSETRON 116684-92-5 PAMICOGREL 101001-34-7
CECLOSPORIN 74436-00-3 PANAMESINE 139225-22-2
GLENVASTATIN 122254-45-9 PARNAPARIN SODIUM
GORALATIDE 120081-14-3 PAZINACLONE 103255-66-9
IBANDRONIC ACID 114084-78-5 PAZUFLOXACIN 127045-41-4
ICOMETASONE ENBUTATE 103466-73-5 PEGORGOTEIN 155773-57-2
IDRAMANTONE 20098-14-0 PENTOSAN POLYSULFATE SODIUM
IFETROBAN 143443-90-7 PEROSPIRONE 150915-41-6
IGANIDIPINE 119687-33-1 PICLAMILAST 144035-83-6
ILEPCIMIDE 82857-82-7 PIMILPROST 139403-31-9
ILOMASTAT 142880-36-2 PLUSONERMIN
ILONIDAP 135202-79-8 POSILUKAST 107023-41-6
IMIDAPRILAT 89371-44-8 POLIXETONIUM CHLORIDE 31512-74-0
IMIGLUCERASE 154248-97-2 POLYSORBATE 1 9017-37-2
IMITRODAST 114686-12-3 POLYSORBATE 8 9009-51-2
INCADRONIC ACID 124351-85-5 POLYSORBATE 20 9005-64-5
INOGATRAN 155415-08-0 POLYSORBATE 21 9005-64-5
INOLIMOMAB 152981-31-2 POLYSORBATE 40 9005-66-7
INSULIN LISPRO 133107-64-9 POLYSORBATE 60 9005-67-8
INTERFERON ALFA 9008-11-1 POLYSORBATE 61 9005-67-8
INTERFERON BETA 9008-11-1 POLYSORBATE 65 9005-71-4
INTERFERON GAMMA 9008-11-1 POLYSORBATE 80 9005-65-6
IOLOPRIDE (123 I) 113716-48-6 POLYSORBATE 81 9005-65-6
IPENOXAZONE 104454-71-9 POLYSORBATE 85 9005-70-3
111 STAT. 2875
Product CAS Number Product CAS number
POLYSORBATE 120 1543262-61-5 TAGORIZINE 118420-47-6
POMISARTAN 144702-17-0 TALSACLIDINE 147025-53-4
PREMAFLOXACIN 143383-65-7 TAMIBAROTENE 94497-51-5
PRILIXIMAB 147191-91-1 TASOSARTAN 145733-36-4
PROPAGERMANIUM TAZAROTENE 118292-40-3
PRULIFLOXACIN 123447-62-1 TAZOFELONE 136433-51-7
QUIFLAPON 136668-42-3 TECHNETIUM (99M TC) FURIFOSMIN 142481-95-6
RACECADOTRIL 81110-73-8 TELINAVIR 143224-34-4
RAMATROBAN 116649-85-5 TELMISARTAN 144701-48-4
RAMOSETRON 132036-88-5 TEVERELIX 144743-92-0
RASAGILINE 136236-51-6 THYMALFASIN 62304-98-7
REGAVIRUMAB 153101-26-9 TINZAPARIN SODIUM
REPAGERMANIUM TIROFIBAN 144494-65-5
REVIPARIN SODIUM TOBORINONE 143343-83-3
RICASETRON 117086-68-7 TOLAFENTRINE 139308-65-9
RIPISARTAN 148504-51-2 TRADECAMIDE 132787-19-0
ROCEPAFANT 132418-36-1 TROVAFLOXACIN 147059-72-1
ROFLEPONIDE 144459-70-1 TROVIRDINE 149488-17-5
RUFINAMIDE 106308-44-5 VEDAPROFEN 71109-09-6
RUZADOLANE 115762-17-9 VERSETAMIDE 129009-83-2
SALNACEDIN 87573-01-1 VORICONAZOLE 137234-62-9
SAMIXOGREL 133276-80-9 VOTUMUMAB 148189-70-2
SANFETRINEM 156769-21-0 XANOMELINE 131986-45-3
SAPRISARTAN 146623-69-0 ZAFIRLUKAST 107753-78-6
SEPRILOSE 133692-55-4 ZALEPLON 151319-34-5
SERATRODAST 112665-43-7 ZANAMIVIR 139110-80-8
SETIPAFANT 132418-35-0 ZANKIREN 138742-43-5
SPIROGLUMIDE 137795-35-8 ZIFROSILONE 132236-18-1
SPRODIAMIDE 138721-73-0 ZIPRASIDONE 146939-27-7
STACOFYLLINE 98833-92-2 ZOLASARTAN 145781-32-4
SULFADIAZINE SODIUM 547-32-0 ZOLEDRONIC ACID 118072-93-8
SULODEXIDE 57821-29-1 ZUCAPSAICIN 25775-90-0
SUSALIMOD 149556-49-0
(2). Table 2 of the Appendix is modified by adding the following chemical or INN derivative names in alphabetical order:
ACETURATE ETHYLENEDIAMINE
N-ACETYLGLYCINATE FARNESIL
ACISTRATE FENDIZOATE
ACOXIL FOSTEDATE
AMSONATE HIBENZATE
BENZATHINE HYBENZATE
BEZOMIL HYCLATE
BUCICLATE o-(4-HYDROXYBENZOYL)BENZOATE
BUNAPSILATE ISOCAPROATE
BUTEPRATE LAURIL
BUTYL ESTER LAURILSULFATE
CARBESILATE LAURYLSULPHATE
P-CHLOROBENZENESULFONATE MEGALLATE
P-CHLOROBENZENESULPHONATE METEMBONATE
CICLOTATE 4-METHYLBICYCLO[2.2.2]OCT-2-ENE-1-CARBOXYLATE
CIPIONATE MOFETIL
CLOSILATE OCTIL
CLOSYLATE OLAMINE
CROBEFATE OXOGLURATE
CROMACATE PENDETIDE
CROMESILATE PIVOXETIL
CYCLOPENTANEPROPIONATE PROXETIL
CYCLOTATE 1-PYRROLIDINEETHANOL
CYPIONATE SODIUM LAURIL SULFATE
DAPROPATE SODIUM LAURIL SULPHATE
DEANIL SODIUM LAURYL SULFATE
DECIL SODIUM LAURYL SULPHATE
DIBUDINATE STEAGLATE
DIBUNATE TENOATE
DIETHANOLAMINE TEPROSILATE
DIGOLIL TETRADECYL HYDROGEN PHOSPHATE
N,N-DIMETHYL-B-ALANINE TOFESILATE
DIOLAMINE TRICLOFENATE
DOCOSIL TRIETHANOLAMINE
DOFOSFATE TRIFLUTATE
EDAMINE TROLAMINE
EDISYLATE TROMETAMOL
EPOLAMINE TROMETHAMINE
ERBUMINE TROXUNDATE
ETABONATE XINOFOATE
ETHANOLAMINE
(3). Table 3 of the Appendix is modified by deleting the products and CAS numbers in such table and inserting the following products and CAS numbers in lieu thereof: 111 STAT. 2876
Product Name CAS Number
2-Acetamido-2-deoxy-B-D-glucopyranose 7512-17-6
2-[(2-Acetamido-6-oxo-6,9-dihydro-1H-purin-9-yl)methoxy] ethyl acetate 75128-73-3
2-(Acetoxymethyl)-4-(2-amino-6-chloropurin-9-yl)butyl acetate 97845-60-8
2-(Acetoxymethyl)-4-(benzyloxy)butyl acetate 131266-10-9
2-(Acetoxymethyl)-4-iodobutyl acetate 127047-77-2
3-Acetoxymethyl-7-[(R)-2-formyloxy-2-phenylacetamido]-3-cephem-4-carboxylic acid 87932-78-3
(3S,4R)-4-Acetoxy-3-[(R)-1-(tert-butyldimethylsilyloxy)ethyl]azetidin-2-one 76855-69-1
2-Acetylbenzo[b]thiophene 22720-75-8
α-Acetyl-γ-butyrolactone 517-23-7
Acetyldigoxin 5511-98-8
3′-Acetyl-4′-hydroxybutyranilide 40188-45-2
3′-Acetyl-2′-hydroxy-4-(4-phenylbutoxy)benzanilide 136450-06-1
N-(9-Acetyl-6-oxo-6,9-dihydro-1H-purin-2-yl)acetamide 3056-33-5
2-Acetylphenothiazine 6631-94-3
4-(4-Acetylpiperazin-4-yl)phenol 67914-60-7
N-Acetylsulfanilyl chloride 121-60-8
(2S)-1-(3-Acetylthio-2-methyl-1-oxopropyl)-L-proline 64838-55-7
D-(-)-3-Acetylthio-2-methylpropionic acid 76497-39-7
D-(-)-3-acetylthio-2-methylpropionyl chloride 74345-73-6
N- [(R)-2-(((R)-2-[(2-Adamantyloxycarbonyl)amino]-3-(1H-indol-3-yl)-2-methyl-1-oxopropyl)amino)-1-phenylethyl]succinamic acid--1-deoxy-1-methylamino-D-glucitol (1:1) 130404-91-0
Adenosine 58-61-7
3-[(S)-3-(L-Alanylamino)pyrrolidin-1-yl]-1-cyclopropyl-6-fluoro-4-oxo-1,4-dihydro-1,8-naphthyridine-3-carboxylic acid hydrochloride 122536-48-5
L-Alanyl-L-proline 13485-59-1
4-Aminobenzyl-N-methylmethanesulfonamide hydrochloride 88918-84-7
(S)-4-(4-Aminobenzyl)oxazolidin-2-one 152305-23-2
4-Aminobutyric acid 56-12-2
7-Aminocephalosporanic acid 957-68-6
4-Amino-6-chlorobenzene-1,3-disulfonamide 121-30-2
4-Amino-6-chlorobenzene-1,3-di(sulfonyl chloride) 671-89-6
4-Amino-2-chloro-6,7-dimethoxyquinazoline 23680-84-4
2-Amino-5-chloro-2′-fluorobenzophenone 784-38-3
4-Amino-5-chloro-N-(1-[3-(4-fluorophenoxy)propyl)-3-methoxy-4-piperidyl)-2-methoxybenzamide 104860-73-3
4-Amino-5-chloro-2-methoxybenzoic acid 7206-70-4
2-Amino-2′-chloro-5-nitrobenzophenone 2011-66-7
2-Amino-6-chloropurine 10310-21-1
(S)-5-Amino-2-(dibenzylamino)-1,6-diphenylhex-4-en-3-one 156732-13-7
trans-6-Amino-2,2-dimethyl-1,3-dioxepan-5-ol 79944-37-9
5-[(2-Aminoethyl)amino]-2-(2-diethylaminoethyl)-2H-[1]benzothiopyrano[4,3,2-cd]indazol-8-ol 119221-49-7
3-(2-Aminoethyl)-N-methylindol-5-ylmethanesulfonamide 88919-22-6
5-(2-Aminoethylthiomethyl)furfuryldimethylamine 66356-53-4
4-(2-Aminoethylthiomethyl)-1,3-thiazol-2-ylmethyl(dimethyl)amine, in the form of a solution in toluene
6-Amino-5-formamido-1,3-dimethyluracil 7597-60-6
3′-Amino-2′-hydroxyacetophenone hydrochloride 90005-55-3
(2S)-2-Amino-3-hydroxy-N-pentylpropionamide--oxalic acid (1:1) 153758-31-7
(1S,2R)-1-Aminoindan-2-ol 126456-43-7
(4-Amino-3-iodophenyl)-N-methylmethanesulfonamide 151140-66-8
7-Amino-3-methoxymethyl-3-cephem-4-carboxylic acid 24701-69-7
7-Amino-3-methyl-3-cephem-4-carboxylic acid 22252-43-3
(1R,2R)-2-Amino-1-(4-methylsulfonylphenyl)propane-1,3-diol 51458-28-7
(1R,2R)-2-Amino-1-(4-methylsulfonylphenyl)propane-1,3-diol hydrochloride 56724-21-1
7-Amino-3-(1-methyltetrazol-5-ylthiomethyl)-3-cephem-4-carboxylic acid 24209-38-9
7-Amino-3-[(5-methyl-1,3,4-thiadiazol-2-yl)thiomethyl]-3-cephem-4-carboxylic acid 30246-33-4
2-(2-Amino-5-nitro-6-oxo-1,6-dihydropyrimidin-4-yl)-3-(3-thienyl)propiononitrile 115787-67-2
2-[(2-Amino-6-oxo-1,6-dihydro-9H-purin-9-yl)methoxy]ethyl N-(benzyloxycarbonyl)-L-valinate 124832-31-1
2-[4-(2-Amino-4-oxo-4,5-dihydrothiazol-5-ylmethyl)phenoxymethyl]-2,5,7,8-tetramethylchroman-6-yl acetate 171485-87-3
7-[(R)-Amino(phenyl)acetamido]-3-methyl-3-cephem-4-carboxylic acid dimethylformamide (2:1) 39754-02-4
5-[(R)-(2-Aminopropyl)]-2-methoxybenzenesulfonamide 112101-81-2
6-Aminopenicillanic acid 551-16-6
3-Aminopyrazole-4-carboxamide hemisulfate 27511-79-1
7-Amino-3-[1-(sulfomethyl)-1H-tetrazol-5-ylthiomethyl]-3-cephem-4-carboxylic acid, sodium salt 71420-85-4
(Z)-2-(2-Aminothiazol-4-yl)-2-methoxyiminoacetic acid 65872-41-5
(2)-2-(2-Amino-1,3-thiazol-4-yl)-2-methoxyiminoacetyl chloride hydrochloride 119154-86-8
2-Amino-7-thenyl-1,7-dihydro-4H-pyrrolo[2,3-d]pyrimidin-4-one hydrochloride 117829-20-6
5-Amino-2,4,6-triiodoisophthaloyl dichloride 37441-29-5
7-Amino-3-[(Z)-prop-1-enyl]-3-cephem-4-carboxylic acid 106447-44-3
Anmonium (3R,5R)-7-[(1S,2S,6R,8S,8aR)-8-(2,2-dimethylbutyryloxy)-1,2,6,7,8a-hexahydro-2,6-dimethyl-1-naphthyl)-3,5-dihydroxyheptanoate 139893-43-9
Ammonium (3R,5R)-7-((1S,2S,6R,8S,8aR)-1,2,6,7,8,8a-hexahydro-2,6-dimethyl-8-[(2S)-2-methylbutyryloxy]-1-naphthyl)-3,5-dihydroxyheptanoate 77550-67-5
Ammoniun (Z)-2-methoxyimino-2-(2-furyl)acetate 97148-39-5
Arginine L-glutamate (INNM) 4320-30-3
L-Asparagine hydrate 5794-13-8
3′-Azido-3′-deoxy-5′-O-tritylthymidine 29706-84-1
Benzhydryl 3-hydroxy-7-(phtnytacetamido)cepham-4-carboxylate 51762-51-7
1-Benzhydrylpiperazine 841-77-0
1-(1,2-Benzisothiazol-3-yl)piperazine hydrochloride 87691-88-1
5-[(Benzofuran-2-ylcarbonyl)amino]indole-2-carboxylic acid 110314-42-6
111 STAT. 2877
Product Name CAS Number
S-(Benzothiazol-2-yl) (Z)-2-(2-aminothiazol-4-yl)-2-methoxyiminothioacetate 80756-85-0
(R)-2-(3-Benzoylphenyl)propionic acid 56105-81-8
(RS)-2-(3-Benzoylphenyl)propionic acid 22161-86-0
Benzyl L-alaninate--p-toluenesulfonic acid (1:1) 42854-62-6
Benzyl (1S,2S)-3-[(3S,4aS,8aS)-3-tert-butylcarbamoylperhydro-2-isoquinolyl]-2-hydroxy-1-(phenylthiomethyl)propylcarbamate 159878-04-3
Benzyl (1R,2S)-3-chloro-2-hydroxy-1-(phenylthiomethyl)propylcarbamate 159878-02-1
Benzyl hydroxy(4-phenylbutyl)phosphinoylacetate 87460-09-1
1-Benzyl-4-(methoxymethyl)-N-phenyl-4-piperidylamine 61380-02-7
Benzyl(methyl)amine 103-67-3
meso-N-Benzyl-3-nitrocyclopropane-1,2-dicarboximide 151860-15-0
(4S,5S)-5-Benzyl-2-oxo-1,3-oxazolidin-4-ylmethyl 4-nitrobenzenesulfonate
N-(Benzyloxycarbonyl)-S-phenyl-L-cysteine 159453-24-4
(S)-3-Benzyloxycarbonyl-1,2,3,4-tetrahydroisoquinolinium p-toluenesulfonate 77497-97-3
N-(Benzyloxycarbonyl)-L-valine 1149-26-4
N-Benzyloxycarbonyl-DL-valine 3588-63-4
2-[(1-Benzyl-4-piperidyl)methylene]-5,6-dimethoxyindan-1-one 120014-07-5
(RS)-2-[(1-Benzyl-4-piperidyl)methyl)-5,6-dimethoxyindan-1-one 142057-79-2
Benzyl(2-pyridyl)amine 6935-27-9
2-[Benzyl(tert-butyl)amino]-1-(α,4-dihydroxy-m-tolyl)ethanol 24085-03-8
(2R,4S)-2-Benzyl-5-[2-(tert-butylcarbamoyl)-4-(3-pyridylmethyl)piperazin-1-yl]-4-hydroxy-N-[(1S,2R)-2-hydroxyindan-1-yl]valeramide 150378-17-9
(2R,4S)-2-Benzyl-5-[2-(tert-butylcarbamoyl)-4-(3-pyridylmethyl)piperazin-1-yl]-4-hydroxy-N-[(1S,2R)-2-hydroxyindan-1-yl]valeramide sulfate 157810-81-6
Benzyl(tert-butyl)(4-hydroxy-3-hydroxymethyl-4-oxophenethy)ammonium chloride 24085-08-3
1,3-Bis(4-nitrophenyl)urea--4,6-dimethylpyrimidin-2-ol (1:1) 330-95-0
5,5-Bis(4-pyridylmethyl)-5H-cyclopenta[2,1-b:3,4-b′]dipyridine hydrate 139781-09-2
4-Bromo-2,2-diphenylbutyric acid 37742-98-6
6-Bromo-2-naphthyl methyl ether 5111-65-9
4-(4-Bromophenyl)piperidin-4-ol 57988-58-6
6-Bromo-2-pyridyl p-tolyl ketone 87848-95-1
(2S,3S)-3-(tert-butoxycarbonylamino)-2-hydroxy-4-phenylbutyric acid 116661-86-0
7-[(S)-3-[(S)-2-(tert-Butoxycarbonylamino)-1-oxopropylamino]pyrrolidin-1-yl)-1-cyclopropyl-6-fluoro-4-oxo-1,4-dihydro-1,8-naphthyridine-3-carboxylic acid 122536-91-8
7- [3-(tert-butoxycarbonylamino)pyrrolidin-1-yl]-8-chloro-1-cyclopropyl-6-fluoro-4-oxo-1,4-dihydroquinoline-3-carboxylic acid 105956-96-5
(3S)-1-(tert-butoxycarbonyl)-3-(tert-butylcarbamoyl)piperazine 150323-35-6
tert-Butyl [(1S,3S,4S)-4-amino-1-benzyl-3-hydroxy-5-phenylpentyl]carbamate 144163-85-9
tert-Butyl [(1S,2S)-1-benzyl-2,3-dihydroxypropyl]carbamate 149451-80-9
4′-tert-Butyl-4-chlorobutyrophenone 43076-61-5
2-Butyl-5-chloro-1H-imidazole-4-carbaldehyde 83857-96-9
2-Butyl-4-chloro-1-(2′-(2-trityl-2H-tetrazol-5-yl)biphenyl-4-ylmethyl]-1H-imidazol-5-ylmethanol 133909-99-6
N-tert-Butyl 3-cyanoandrosta-3,5-diene-17-carboxamide 151338-11-3
tert-Butyl [(4R,6R)-6-(cyanomethyl)-2,2-dimethyl-1,3-dioxolan-4-yl]acetate 125971-94-0
(3S,4aS,8aR)-N-tert-Butyldecahydroisoquinoline-3-carboxamide 136465-81-1
(5-[(Z)-3,5-Di(tert-butyl)-4-hydroxybenzylidene]-4-oxo-4,5-dihydrothiazol-2-yl)ammonium methanesulfonate 139340-56-0
2-sec-Butyl-4-(4-[4-(4-hydroxyphenyl)piperazin-1-yl]phenyl)-2H-1,2,4-triazol-3(4H)-one 106461-41-0
tert-Butyl meso-3-azabicyclo[3.1.0]hex-6-ylcarbamate 134575-17-0
(3S,4R)-3-[(R)-1-(tert-Butyldimethylsilyloxy)ethyl]-4-[(1R,3S)-3-methoxy-2-oxocyclohexyl]azetidin-2-one 135297-22-2
(3S,4aS,8aS)-N-(tert-Butyl)-2-[(2S,3S)-2-hydroxy-3-(3-hydroxy-2-methylbenzamido)-4-(phenylthio)butyl]perhydroisoquinoline-3-carboxamide 159989-64-7
(3S,4aS,8aS)-N-(tert-Butyl)-2-[(2S,3S)-2-hydroxy-3-(3-hydroxy-2-methylbenzamido)-4-(phenylthio)butyl]perhydroisoquinoline-3-carboxamide--methanesulfonic acid (1:1) 159989-65-8
N-(tert-Butyl)-3-methylpyridine-2-carboxamide 32998-95-1
1-(4-tert-Butylphenyl)-4-[4-(α-hydroxybenzhydryl)piperidino]butan-1-one 43076-30-8
tert-Butyl [(RS)-pyrrolidin-3-yl]carbamate 140629-77-2
tert-Butyl ((S)-1-methyl-2-oxo-2-[(S)-pyrrolidin-3-ylamino]ethyl)carbamate 122536-66-7
tert-Butyl ((S)-α-[(S)-oxiranyl]phenethy)carbamate 98737-29-2
(S)-N-tert-Butyl-1,2,3,4-tetrahydroisoquinoline-3-carboxamide 149182-72-9
tert-Butyl triphenylphosphoranylideneacetate 35000-38-5
Calcium bis(4-0-(B-D-galactopyranosyl)-D-gluconate)--calcium bromide (1:1) 33659-28-8
Calcium bis(4-0-(B-D-galactopyranosyl)-D-gluconate) dihydrate 110638-68-1
Calcium gluconate lactate 11116-97-5
2-Carbamoyloxypropyltrimethylammoniun chloride 590-63-6
1-Carboxy-1-methylethoxyammonium chloride 89766-91-6
Carbenoxolone, dicholine salt (INNM) 74203-92-2
1-[2-(4-Carboxyphenoxy)ethyl]piperidinium chloride 84449-80-9
4-Carboxy-4-phenylpiperidinium p-toluenesulfonate 83949-32-0
Casanthranol 8024-48-4
(Z)-2-[2-(Chloroacetamido)thiazol-4-yl]-2-(methoxyimino)acetic acid 64486-18-6
1-(4-Chlorobenzenesulfonyl)urea 22663-37-2
1-Chloro-4,4-bis(4-fluorophenyl)butane 3312-04-7
(R)-α-(Chlorocarbony)benzyl formate 29169-64-0
2-Chloro-N-[2-(2-chlorobenzoy)-4-nitrophenyl]acetamide
1-Chloro-2-(chlorodiphenylmethyl)benzene 42074-68-0
7-Chloro-1-cyclopropyl-6-fluoro-4-oxo-1,4-dihydro-1,8-naphthyridine-3-carboxylic acid 100361-18-0
7-Chloro-1-cyclopropyl-6-fluoro-4-oxo-1,4-dihydroquinoline-3-carboxylic acid 86393-33-1
2-Chlorodibenz[b,f][1,4]oxazepin-11(10H)-one 3158-91-6
2-Chloro-4,5-difluorobenzoic acid 110877-64-0
8-Chloro-6,11-dihydro-11-(1-methyl-4-piperidylidene)-5H-benzo[5,6]cyclohepta[1,2-b]pyridine 38092-89-6
2-Chloro-9-(3-dimethylaminopropyl)-9H-thioxanthen-9-ol 4295-65-2
111 STAT. 2878
Product Name CAS Number
21-Chloro-9-B,11-B-epoxy-17-hydroxy-16-α-methylpregna-1,4-diene-3,20-dione 83881-08-7
(2-Chloroethyl)diisopropylamine hydrochloride 4261-68-1
7-Chloro-1-ethyl-6-fluoro-1,4-dihydro-4-oxoquinoline-3-carboxylic acid 68077-26-9
3-(2-Chloroethyl)-2-methyl-4H-pyrido[1,2-a]pyrimidin-4-one 41078-70-0
3-(2-Chloroethyl)quinazot ine-2,4(1H,3H)-dione 5081-87-8
3-(2-Chloroethyl)-6,7,8,9-tetrahydro-2-methyl-4H-pyrido[1,2-a]pyrimidin-4-one hydrochloride 93076-03-0
4-Chloro-4′-fluorobutyrophenone 3874-54-2
7-Chloro-6-fluoro-1-(4-fluorophenyl)-1,4-dihydro-4-oxoquinoline-3-carboxylic acid 98105-79-4
[7-Chloro-5-(2-fluorophenyl)-2,3-dihydro-1H-1,4-benzodiazepin-2-yl]methylamine 59467-64-0
[7-Chloro-5-(2-fluorophenyl)-2,3-dihydro-1H-1,4-benzodiazepin-2-ylmethyl]ammonium bis(maleate) 59469-29-3
8-Chloro-6-(2-fluorophenyl)-1-methyl-3a,4-dihydro-3H-imidazo[1,5-a][1,4]benzodiazepine 59467-69-5
8-Chloro-6-(2-fluorophenyl)-1-methyl-4H-imidazo[1,5-a][1,4]benzodiazepine-3-carboxylic acid 59468-44-9
3-(2-Chloro-6-fluorophenyl)-5-methylisoxazole-4-carbonyl chloride 69399-79-7
7-Chloro-5-(2-fluorophenyl)-3-methyl-2-(nitromethylene)-2,3-dihydro-1H-1,4-benzodiazepine 4-oxide 59469-63-5
7-Chloro-5-(2-fluorophenyl)-2-(nitromethylene)-2,3-dihydro-1H-1,4-benzodiazepine 59467-63-9
(-)-α-(Chloroformyl)benzylammonium chloride 39878-87-0
3-Chloroformyl-o-tolyl acetate 167678-46-8
5-Chloro-2-[3-(hydroxymethyl)-5-methyl-4H-1,2,4-triazol-4-yl]benzophenone 38150-27-5
5-Chloroindolin-2-one 17630-75-0
4-Chloro-1′-(4-methoxyphenyl)benzohydrazide 16390-07-1
5-Chloro-1-methyl-4-nitroimidazole 4897-25-0
7-Chloro-2-methylquinoline 4965-33-7
5-Chloro-2-(3-methyl-4H-1,2,4-triazol-4-yl)benzophenone 36916-19-5
2-Chloronicotinic acid 2942-59-8
Chlorophenesin Carbamate (INNH) 886-74-8
2-Chlorophenothiazine 92-39-7
1-(3-Chlorophenyl)-4-(3-chloropropy)piperazine hydrochloride 52605-52-4
trans-4-(p-Chlorophenyl)cyclohexanecarboxylic acid 49708-81-8
3-[2-(3-Chlorophenyl)ethyl]pyridine-2-carbonitrile 31255-57-9
3-[2-(3-Chlorophenyl)ethyl]-2-pyridyl 1-methyl-4-piperidyl ketone hydrochloride 107256-31-5
3-(2-Chlorophenyl)-5-methylisoxazole-4-carbonyl chloride 25629-50-9
1-(2-Chlorophenyl)piperazine hydrochloride 41202-32-8
1-(3-Chlorophenyl)piperazine hydrochloride 13078-15-4
4-(4-Chlorophenyl)piperidine-2,6-dione 84803-46-3
4-(4-Chlorophenyl)piperidin-4-ol 39512-49-7
5-Chloro-1-(4-piperidyl)-1H-benzimidazol-2(3H)-one 53786-28-0
1-(3-Chloropropyl)-2,6-dimethylpiperidinium chloride 83556-85-8
3-Chloropropyl 2,5-xylyl ether 31264-51-4
2-Chloro-3-pyridylamine 6298-19-7
3-[(E)-2-(7-Chloro-2-quinolyl)vinyl]benzaldehyde 120578-03-2
3-(4-Chloro-1,2,5-thiadiazol-3-yl)pyridine 131986-28-2
4-Chloro-α, α, α-tri fluoro-3-nitrotoluene 121-17-5
ω-Conotoxin M VIIA 107452-89-1
(Z)-[Cyano(2,3-dichlorophenyl)methylene]carbazemidine 94213-23-7
1-(4-[(2-Cyanoethyl)thiomethyl]thiazol-2-yl)guanidine 76823-93-3
2-Cyano-3-morpholinoacrylamide 25229-97-4
L-N-(1-Cyano-1-vanillylethyl)acetamide 14818-98-5
(Z)-(2-Cyanovinyl)trimethylammonium p-toluenesulfonate 58311-73-2
2-Cyclohexa-1,4-dienylglycine 20763-30-8
1-([(Cyclohexyloxy)carbonyl]oxy)ethyl 1-(1-hydroxyethyl)-5-methoxy-2-oxo-1,2,5,6,7,8,8a,8b-octahydroazeto[2,1-a]isoindole-4-carboxylate 141646-08-4
trans-4-Cyclohexyl-2-proline hydrochloride 90657-55-9
1-Cyclopropyl-6,7-difluoro-1,4-dihydro-4-oxoquinoline-3-carboxylic acid 93107-30-3
1-Cyclopropyl-6,7-difluoro-8-methoxy-4-oxo-1,4-dihydroquinoline-3-carboxylic acid 112811-72-0
4-[2-(Cyclopropylmethoxy)ethyl]phenol 63659-16-5
Cytosine 71-30-7
Danaparoid sodium 83513-48-8
10-Deacetylbaccatin III 32981-86-5
4′-Demethylepipodophyllotoxin 6559-91-7
2-Deoxy-D-erythropentose 533-67-5
1-Deoxy-1-(octylamino)-D-glucitol 23323-37-7
Deoxyribonuclease 9003-98-9
Dexibuprofen lysine (INNM) 113403-10-4
5H-Dibenz[b,f]azepine 256-96-2
5H-Dibenzo[a,d]cyclohepten-5-one 2222-33-5
4-(5H-Dibenzo[a,d] cyclohepten-5-yl)piperidine 101904-56-7
3-(5H-0ibenzo[a,d]cyclohepten-5-ylpropyl)dimethylammonium chloride 1614-57-9
2-(2-[4-(Dibenzo[b,f][1,4]thiazepin-11-yl)piperazin-1-yl]ethoxy)ethanol 111974-69-7
Dibenzoyl-L-tartaric acid 2743-38-6
N,N′-Dibenzylethylenediammoniun di(acetate) 122-75-8
5-(N,N-Dibenzylglycyl)salicylamide 30566-92-8
(3aS,6aR)-1,3-Dibenzyl-2,3,3a,4,6,6a-hexahydro-1H-furo[3,4-d]imidazole-2,4-dione 28092-62-8
α,4-Dibromo-2-fluorotoluene 76283-09-5
2,6-Dichloro-5-fluoronicotinic acid 82671-06-5
1,3-Dichloro-6,7,8,9,10,12-hexahydroazepino[2,1-b]quinazoline hydrochloride 149062-75-9
2′,5-Dichloro-2-[3-(hydroxymethyl)-5-methyl-4H-1,2,4-triazol-4-yl]benzophenone 54196-62-2
(4R,5R)-2-(Dichloromethyl)-4,5-dihydro-5-(4-mesylphenyl)oxazol-4-ylmethanol 126813-11-4
2-(Dichloromethyl)-4,5-dihydro-5-(4-mesylphenyl)oxazol-4-ylmethanol 126429-09-2
2′,5-Dichloro-2-(3-methyl-4H-1,2,4-triazol-4-yl)benzophenone 54196-61-1
4-(3,4-Dichlorophenyl)-3,4-dihydronaphthalen-1(2H)-one 79836-44-5
1-(2,4-Dichlorophenyl)-2-imidazol-1-ylethanol 24155-42-8
2-(2,4-Dichlorophenyl)-2-(1H-imidazol-1-ylmethyl)-1,3-dioxolan-4-ylmethanol 84682-23-5
111 STAT. 2879
Product Name CAS Number
1-(2,6-Dichlorophenyl)indolin-2-one 15362-40-0
3-(2,6-Dichlorophenyl)-5-methylisoxazole-4-carbonyl chloride 4462-55-9
1-(2,3-Dichlorophenyl)piperazine hydrochloride 41202-77-1
trans-(±)-4-(3,4-Dichlorophenyl)-1,2,3,4-tetrahydro-1-naphthyl(methyl)ammonium chloride 79617-99-5
cis-2-(2,4-Dichlorophenyl)-2-(1H-1,2,4-triazol-1-ylmethyl)-1,3-dioxolan-4-ylmethanol 67914-85-6
α,3-Dichlorotoluene 620-20-2
2′,3′-Dideoxyadenosine 4097-22-7
Dienestrol di(acetate) (INNM) 84-19-5
Diethyl ethoxymethylenemalonate 87-13-8
3,3-Diethyl-5-(hydroxymethyl)pyridine-2,4(1H,3H)-dione 20096-03-1
Diethylstilbestrol dibutyrate (INNM) 74664-03-2
Diethylstilbestrol dipropionate (INNM) 130-80-3
(Z)-3-(2-[4-(2,4-Difluoro-α-hydroxyiminobenzyl)piperidino]ethyl)-6,7,8,9-tetrahydro-2-methyl-4H-pyrido[1,2-a]pyrimidin-4-one 132961-05-8
1-(4,4′-Difluorobenzhydryl)piperazine 27469-60-9
6-α,9-Difluoro-11-B,17-α-dihydroxy-16-α-methyl-3-oxoandrosta-1,4-diene-17-B-carboxylic acid 28416-82-2
2-(2,4-Difluorophenyl)-1,3-bis(1H-1,2,4-triazol-1-yl)propan-2-ol 123631-92-5
1-(2,4-Difluorophenyl)-6,7-difluoro-1,4-dihydro-4-oxoquinoline-3-carboxylic acid 103995-01-3
(E)-(+)-2-(2,4-Difluorophenyl)-1-{3-[4-(2,2,3,3-tetrafluoropropoxy)styryl]-1H-1,2,4-triazol-1-yl}-3-(1H-1,2,4-triazol-1-yl)propan-2-ol 141113-28-2
(R)-2-(2,4-Difluorophenyl)-3-(1H-1,2,4-triazol-1-yl)propane-1,2-diol 141113-41-9
2,4′-Difluoro-2-(1H-1,2,4-tri azol-1-yl)acetophenone hydrochloride 86386-75-6
1-(2,3-Dihydro-1,4-benzodioxin-2-ylcarbonyl)piperazine hydrochloride 70918-74-0
10,11-Dihydro-5H-dibenz[b,f]azepine 494-19-9
10,11-Dihydro-5H-dibenzo[a,d]cyclohepten-5-one 1210-35-1
3-(9,10-Dihydro-9,10-ethanoanthracen-9-yl)acrylaldehyde 38849-09-1
N-{5-[(1,4-Dihydro-2-methyl-4-oxoquinazolin-6-ylmethyl)methylamino]-2-thenoyl}-L-glutamic acid 112887-68-0
N-(5,6-Dihydro-6-methyl-2-sulfamoyl-4H-thieno[2,3-b]thiopyran-4-yl)acetamide 7,7-dioxide 120298-38-6
(4S,6S)-5,6-Dihydro-6-methyl-4H-thieno[2,3-b]thiopyran-4-ol 7,7-dioxide 147086-81-5
5,6-Dihydro-4-oxo-4H-thieno[2,3-b]thiine-2-sulfonamide 105951-31-3
5,6-Dihydro-4-oxo-4H-thieno[2,3-b]thiine-2-sulfonamide 7,7-dioxide 105951-35-7
{(1R,3R,5S)-3,5-Dihydroxy-2-t(E)-(3S)-3-hydroxyoct-1-enyl]cyclopentyl}acetic acid 56188-04-6
1,1-Diisopropoxycyclohexane 1132-95-2
Diisopropyl phosphorofluoridate 55-91-4
5,6-Dimethoxyindan-1-one 2107-69-9
1,1-Dimethoxy-2-(2-methoxyethoxy)ethane 94158-44-8
3,4-Dimethoxy-β-methylphenethylamine 55174-61-3
(R)-6,7-Dimethoxy-2-methyl-1-(3,4,5-trimethoxybenzyl)-1,2,3,4-tetrahydroisoquinoline--dibenzoyl-L-tartaric acid (1:1) 104832-01-1
α,α-Dimethoxy-2-nitrotoluene 20627-73-0
3,4-Dimethoxyphenethylamine 120-20-7
5,6-Dimethoxypyrimidin-4-ylamine 5018-45-1
6,7-Dimethoxyquinazoline-2,4(1H,3H)-dione 28888-44-0
4′-[2-(Dimethylamino)ethoxy]-2-phenylbutyrophenone 68047-07-4
(S)-4-{[3-(2-Dimethylaminoethyl)-1H-indol-5-yl]methyl}oxazolidin-2-one 139264-17-8
(2S,3R)-4-Dimethylamino-3-methyl-1,2-diphenylbutan-2-ol 38345-66-3
3-Dimethylaminomethyl-1,2,3,4-tetrahydro-9-methylcarbazol-4-one 132659-89-3
2-(Dimethylaminothio)acetamide hydrochloride 27366-72-9
Dimethyl cyanocarbonimidodithioate 10191-60-3
2,2-Dimethylcyclopropanecarboxamide 75885-58-4
(3aR,4bS,4R,4aS,5aS)-4-(5,5-Dimethyl-1,3-dioxolan-2-yl)hexahydrocyclopropa[3,4]cyclopenta[1,2-b]furan-2(3H)-one 39521-49-8
(S)-N,-N-Dimethyl-[3-(2-thienyl)-3-(1-naphthyloxy)propyl]amine--phosphoric acid (1:1) 161005-84-1
Dimethyl(2-[5-(1H-1,2,4-triazol-1-ylmethyl)indol-3-yl]ethyl)amine 144034-80-0
1-[5-(4,5-Diphenylimidazol-2-ylthio)pentyl]-1-heptyl-3-(2,4-difluorophenyl)urea 130804-35-2
1,2-Diphenyl-4-(2-phenylthioethyl)pyrazolidine-3,5-dione 3736-92-3
2,2-Diphenyl-4-piperidinovaleronitrile 5424-11-3
3,3-Diphenyltetrahydrofuran-2-ylidene(dimethyl)ammonium bromide 37743-18-3
Disodium 2,5-dihydro-5-thiooxo-1H-tetrazol-1-ylmethanesulfonate 66242-82-8
(S)-1,4-Dithia-7-azaspiro[4.4]nonane-8-carboxylic acid 124492-04-2
Enoxolone dihydrogen phosphate (INNM) 18416-35-8
9-B,11-B-Epoxy-17,21-dihydroxy-16-α-methylpregna-1,4-diene-3,20-dione 24916-90-3
9-B, 11-B-Epoxy-17-α,21-dihydroxy-16-B-methylenepregna-1,4-di ene-3,20-dione 981-34-0
2,3-Epoxypropyl 4-(2-methoxyethyl)phenyl ether 56718-70-8
Ethchlorvynol carbamate (INNM) 74283-25-3
(S,S)-N-(1-Ethoxycarbonyl-3-phenylpropyl)alanine 82717-96-2
2-Ethoxy-5-fluoropyrimidin-4(1H)-one 56177-80-1
Ethyl N-{2-[(acetylthio)methyl]-3-(o-tolyl)-1-oxopropyl}-L-methionate 136511-43-8
Ethyl 4-(2-amino-4-chloroanilino)piperidine-1-carboxylate 53786-45-1
Ethyl (S)-3-(4-aminophenyl)-2-phthalimidopropionate hydrochloride 97338-03-9
Ethyl 2-(2-amino-1,3-thiazol-4-yl)-2-hydroxyiminoacetate 64485-82-1
Ethyl (S)-3-{4-[bis(2-chloroethyl)amino]phenyl}-2-phthalimidopropionate hydrochloride 94213-26-0
Ethyl 2-(2-chloro-4,5-difluorobenzoyl)-3-(2,4-difluoroanilino)acrylate 29169-64-0
Ethyl 7-chloro-1-(2,4-difluorophenyl)-6-fluoro-1,4-dihydro-4-oxonaphthyridine-3-carboxylate 100491-29-0
Ethyl 3-(2-chloro-4,5-difluorophenyl)-3-hydroxyacrylate 121873-00-5
Ethyl 4-(5-chloro-2,3-dihydro-2-oxo-1H-benzimidazol-2-yl)piperidine-1-carboxylate 53786-46-2
Ethyl (7-chloro-2,4-dioxo-1,2,3,4-tetrahydroquinazolin-1-yl)acetate 112733-45-6
Ethyl 7-chloro-2-oxoheptanoate 78834-75-0
Ethyl 7-chloro-2-oxoheptanoate, in the form of a solution in toluene
Ethyl (1-cyanocyclohexyl)acetate 133481-10-4
Ethyl 2-cyano-3-ethoxyacrylate 94-05-3
Ethyl [3-(cyanomethyl)-4-oxo-3,4-dihydrophthalazin-1-yl]acetate 122665-86-5
Ethyl 1-cyclopropyl-6,7-difluoro-4-oxo-1,4-dihydroquinoline-3-carboxylate 98349-25-8
111 STAT. 2880
Product Name CAS Number
1-Ethyl-1,4-dihydro-4-ox6-1,3-dioxolo[4,5-g]cinnoline-3-carbonitrile 28657-79-6
1-Ethyl-1,2-dihydro-5H-tetrazol-5-one 69048-98-2
4-Ethyl-2,3-dioxopiperazine-1-carbonyl chloride 59703-00-3
Ethyl 1-ethyl-6,7,8-trifluoro-1,4-dihydro-4-oxoquinoline-3-carboxylate 100501-62-0
Ethyl 4-[1-(4-fluorobenzyl)-1H-benzimidazol-2-ylamino]piperidine-1-carboxylate 84501-68-8
Ethyl (2-formamido-1,3-thiazol-4-yl)glyoxylate 64987-03-7
(S)-4-Ethyl-4-hydroxy-7,8-dihydro-1H-pyrano[3,4-f]indolizine-3,6,10(4H)-trione 110351-94-5
Ethyl 2-(hydroxyimino)-2-[2-(tritylamino)thiazol-4-yl]acetate hydrochloride 66339-00-2
Ethyl 4-hydroxy-2-methyl-2H-1,2-benzothiazine-3-carboxylate 1,1-dioxide 24683-26-9
2-(7-Ethyl-1H-indol-3-yl)ethanol 41340-36-7
Ethyl DL-mandelate 4358-88-7
3-Ethyl 5-methyl (±)-4-(2-chlorophenyl)-1,4-dihydro-2-[2-(1,3-dioxoisoindolin-2-yl)ethoxymethyl]pyridine-3,5-dicarboxylate 103094-30-0
Ethyl 2-oxo-4-phenylbutyrate 64920-29-2
Ethyl 4-oxopiperidine-1-carboxylate 29976-53-2
Ethyl 2-oxopyrrolidin-2-ylacetate 61516-73-2
5-Ethyl-4-(2-phenoxyethyl)-4H-1,2,4-triazol-3(2H)-one 95885-13-5
1-Ethylpyrrolidin-2-ylmethylamine 26116-12-1
Ethyl (S)-2-[(S)-4-methyl-2,5-dioxo-1,3-oxazolidin-3-yl]-4-phenylbutyrate 84793-24-8
Ethyl tetrazole-5-carboxylate 55408-10-1
Ethyl 1H-tetrazole-5-carboxylate, sodium salt 96107-94-7
Ethyl (Z)-2-(2-aminothiazol-4-yl)-2-(methoxyimino)acetate 64485-88-7
Fibrinuclease, powder
2-[α-(4-Fluorobenzoyl)benzyl]-4-methyl-3-oxovaleranilide 125971-96-2
4-(4-Fluorobenzoyl)pyridinium p-toluenesulfonate
4-Fluorobenzyl-1H-benzimidazol-2-ylamine 83783-69-1
[1-(4-Fluorobenzyl)-1H-benzimidazol-2-yl](4-piperidyl)amine 75970-99-9
2-[(1S,2R)-6-Fluoro-2-hydroxy-1-isopropyl-1,2,3,4-tetrahydro-2-naphthyl]ethyl p-toluenesulfonate 104265-58-9
6-[3-Fluoro-5-(4-methoxytetrahydropyran-4-yl)phenoxymethyl]-1-methyl-2-quinolone 140841-32-3
α-(6-Fluoro-2-methylinden-3-yl)-p-tolyl methyl sulfide, in the form of a solution in toluene (Z)-5-Fluoro-2-methyl-1-(4-methylthiobenzylidene)-1H-inden-3-ylacetic acid 49627-27-2
cis-1-[3-(4-Fluorophenoxy)propyl]-3-methoxy-4-piperidylamine 104860-26-6
1-(1-{3-[2-(4-Fluorophenyl)-1,3-dioxolan-2-yl]propyl}-4-piperidyl)-2,3-dihydro-1H-benzimidazole-2-thione 94732-98-6
(4R,6R)-6-{2-[2-(4-Fluorophenyl)-5-isopropyl-3-phenyl-4-(phenylcarbamoyl)pyrrol-1-yl]ethyl}-4-hydroxytetrahydro-2H-pyran-2-one 125995-03-1
1-(4-Fluorophenyl)-4-oxocyclohexanecarbonitrile 56326-98-8
1-(4-Fluorophenyl)piperazine dihydrochloride 64090-19-3
(S)-3-Formamido-2-formyloxypropionic acid 125496-24-4
(2-Formamido-1,3-thiazol-4-yl)glyoxylic acid 64987-06-0
2-(2-Formamido-1,3-thiazol-4-yl)-2-methoxyiminoacetic acid 65872-43-7
4-Formyl-N-isopropylbenzamide 13255-50-0
(3aR,4R,5R,6aS)-4-Formyl-2-oxohexahydro-2H-cyclopenta[b]furan-5-yl benzoate 39746-01-5
3-Formylrifamycin 13292-22-3
1-(2-Furoyl)piperazine 40172-95-0
4-O-B-D-Galactopyranosyl-D-gluconic acid 96-82-2
(α-D-Glucopyranosylthio)gold 12192-57-3
5-Glyoxyloylsalicylamide hydrate 141862-47-7
2-Guanidinothiazol-4-ylmethyl carbamimidothioate dihydrochloride 88046-01-9
1,1,1,3,3,3-Hexafluoropropan-2-ol 920-66-1
1,6-Hexanediamine, polymer with 1,10-dibromodecane 162430-94-6
Hexestrol dibutyrate (INNM) 36557-18-3
Hexestrol dipropionate (INNM) 59386-02-6
3-(4-Hexyloxy-1,2,5-thiadiazol-3-yl)-1-methylpyridinium iodide 131988-19-7
(3S,4S)-3-Hexyl-4-[(R)-2-(hydroxytridecyl)]oxetan-2-one 104872-06-2
N-(4-Hydrazinobenzyl)methanesulfonamide hydrochloride 81880-96-8
α-Hydroxy-B,B-dimethyl-γ-butyrolactone 599-04-2
DL-α-Hydroxy-B,B-dimethyl-γ-butyrolactone 79-50-5
N-(2-Hydroxyethyl)lactamide 5422-34-4
(2S,3S)-3-hydroxy-2-(4-methoxyphenyl)-2,3-dihydro-1,5-benzothiazepin-4(5H)-one 42399-49-5
17-α-Hydroxy-16-α-methyl-3,20-dioxopregna-1,4-dien-21-yl acetate 24510-54-1
17-α-Hydroxy-16-B-methyl-3,20-dioxopregna-1,4-dien-21-yl acetate 24510-55-2
17-α-Hydroxy-16-B-methyl-3,20-dioxopregna-1,4,9(11)-trien-21-yl acetate 910-99-6
17-Hydroxy-16-α-methyl-3,20-dioxopregna-1,4,9(11)-trien-21-yl acetate 10106-41-9
2-Hydroxy-4-(methylthio)butyric acid 583-91-5
trans-4-Hydroxy-1-(4-nitrobenzytoxycarbonyl)-L-proline 96034-57-0
(3R,4S)-3-Hydroxy-4-phenylazetidin-2-one 132127-34-5
D-2-(4-Hydroxyphenyl)glycine 22818-40-2
11-α-Hydroxypregn-4-ene-3,20-dione 80-75-1
3-B-Hydroxy-5-α-spirostan-12-one 467-55-0
Indan-5-yl hydrogen phenylmalonate 27932-00-9
Intermediate concentrate obtained from a genetically-modified Escherichia coli fermentation medium, containing human granulocyte-macrophage colony-stimulating factor; for use in the manufacture of medicaments of HS No. 3002
Intermediate concentrate obtained from a genetically-modified Escherichia coli fermentation medium, containing human interferon α-2b; for use in the manufacture of medicaments of HS No. 3002
Intermediate concentrates obtained from a Micromonospora inyoensis fermentation medium used for the manufacture of the antibiotics sisomicin (INN) and netilmicin (INN)
Intermediate concentrates obtained from a Micromonospora purpurea fermentation medium used for the manufacture of the antibiotics gentamicin sulfate (INNM) and isepamicin (INN)
Iodomethyl penicillanate 1,1-dioxide 76247-39-7
111 STAT. 2881
Product Name CAS Number
2-Iodo-4-(1H-1,2,4-triazol-1-ylmethyl)aniline 160194-26-3
Isobutyl 3,4-epoxybutyrate 111006-10-1
1-Isopropenyl-1H-benzimidazol-2(3H)-one 52099-72-6
3-Isopropoxy-5-methoxy-N-(1H-tetrazol-5-yl)benzo[b]thiophene-2-carboxamide 104795-66-6
3-Isopropoxy-5-methoxy-N-(1H-tetrazol-5-yl)benzo[b]thiophene-2-carboxamide --1H-imidazole (1:1) 104795-67-7
3-Isopropoxy-5-methoxy-N-(1H-tetrazol-5-yl)benzo[b]thiophene-2-carboxamide, sodium salt 104795-68-8
Isopropyl 2,3-dihydro-1H-pyrrolizine-1-carboxylate 66635-71-0
4-(4-Isopropylpiperazin-1-yl)phenol 67914-97-0
Isopropyl[2-(piperazin-1-yl)-3-pyridyl]amine 147539-21-7
N-[2-Isopropylthiazol-4-ylmethyl(methyl)carbamoyl]-L-valine 154212-61-0
Lysozyme chloride 9001-63-2
L-lysyl-L-leucyl-L-leucyl-L-leucyl-L-leucyl-L-lysyl-L-leucyl-L-leucyl-L-leucyl-L-leucyl-L-lysyl-L-leucyl-L-leucyl-L-leucyl-L-leucyl-L-lysyl-L-leucyl-L-leucyl-L-leucyl-L-leucyl-L-lysine 138531-07-4
Magnesium bis[(2,3-dihydro-1,5-dimethyl-3-oxo-2-phenyl-1H-pyrazol-4-yl)methylamino] methanesulfonate 6150-97-6
Magnesium bis(4-nitrobenzyl malonate) dihydrate
7-[(D)-Mandelamido]cephalosporanic acid 51818-85-0
D-Mandelic acid 611-71-2
(1R,2S,5R)-Menthyl (2R,5S)-5-(4-amino-2-oxo-1,2-dihydropyrimidin-1-yl)-1,3-oxathiolane-2-carboxylate 147027-10-9
(1R,2S,5R)-Menthyl (2R,5R)-5-hydroxy-1,3-oxathiolane-2-carboxylate 147126-62-3
N-(2-Mercaptoethyl)propionamide 67305-72-0
5-Methanesulfonamidoindole-2-carboxylic acid 150975-95-4
(Z)-2-Methoxyimino-2-[2-(tritylamino)thiazol-4-yl]acetic acid 66215-71-2
5-Methoxybenzimidazole-2-thiol 37052-78-1
4-Methoxybenzyl 3-chloromethyl-7-(2-phenylacetamido)-3-cephem-4-carboxylate 104146-10-3
4-Methoxy-3,5-dimethyl-2-pyridylmethanol 86604-78-6
9-Methoxyfuro[3,2-g]chromen-7-one 298-81-7
6-Methoxy-2-(4-methoxyphenyl)benzo[b]thiophene 63675-74-1
N-[4-(Methoxymethyl)-4-piperidyl]-N-phenylpropionamide hydrochloride 84196-16-7
(9S,13S,14S)-3-Methoxymorphinan hydrochloride 1087-69-0
6-Methoxy-2-naphthaldehyde 3453-33-6
(RS)-2-(6-Methoxy-2-naphthyl)propionic acid 26159-31-9
1-[2-(4-Methoxyphenyl)ethyl]-4-piperidylamine dihydrochloride 108555-25-5
1-(2-Methoxyphenyl)piperazine 35386-24-4
1-(2-Methoxyphenyl)piperazine hydrochloride 5464-78-8
Methyl 4-acetamido-5-chloro-o-anisate 4093-31-6
Methyl 3-aminocrotonate 14205-39-1
Methyl 3-amino-5,6-dichloropyrazine-2-carboxylate 1458-18-0
Methyl (2R,3S)-3-benzamido-2-hydroxy-3-phenylpropionate 32981-85-4
2-(N-Methylbenzylamino)ethyl 3-aminobut-2-enoate 54527-73-0
4′-Methylbiphenyl-2-carbonitrile 114772-53-1
5-(4′-Methylbiphenyl-2-yl)-1-trityl-1H-tetrazole 124750-53-4
9-(3-Methylbut-2-enyloxy)-7H-furo[3,2-g]chromen-7-one 482-44-0
(1S)-2-Methyl-2,5-diazabicyclo[2.2.1]heptane dihydrobromide 125224-62-6
3-Methyl-2-(3,4-dimethoxyphenyl)butyronitrile 20850-49-1
3-[(3aS,4S,7aS)-7a-Methyl-1,5-dioxooctahydro-1H-inden-4-yl]propionic acid 1944-63-4
3,4-(Methylenedioxy)phenol 533-31-3
Methyl (2R,3S)-2,3-epoxy-3-(4-methoxyphenyl)propionate 105560-93-8
Methyl 5-glyoxyloylsalicylate hydrate 29754-58-3
Methyl hydrogen (2S,3R)-3-amino-2-[(S)-(1-hydroxyethyl)]glutarate 79814-47-4
Methyl (R)-3-hydroxybutyrate 3976-69-0
Methyl 7-[(3RS)-3-hydroxy-5-oxocyclopent-1-enyl]heptanoate 40098-26-8
4-Methylimidazole 822-36-6
Methyl 2-methoxy-5-methylsulfonylbenzoate 63484-12-8
Methyl 1-methylpyrrol-2-ylacetate 51856-79-2
Methyl(1-methylthio-2-nitrovinyl)amine 61832-41-5
5-Methyl-2-(2-nitroanilino)thiophene-3-carbonitrile 138564-59-7
Methyl 2-(3-nitrobenzylioene)-3-oxobutyrate 39562-17-9
2-Methyl-4-nitroimidazole 696-23-1
Methyl (4-nitrophenyl)-L-alaninate 81677-60-3
Methyl 3-oxo-4-aza-5-α-androst-1-ene-17-B-carboxylate 103335-41-7
Methyl 5-pentafluoroethyl-2-propylimidazole-4-carboxylate 150097-92-0
3-Methyl-7-(phenylacetamido)-3-cephem-4-carboxylic acid 27255-72-7
5-Methyl-3-phenylisoxazole-4-carbonyl chloride 16883-16-2
4-Methylpiperazin-1-ylamine 6928-85-4
5-(1-Methyl-4-piperidyl)-5H-dibenzo[a,d]cyclohepten-5-ol hydrochloride 4046-24-6
[(2-Methyl-1-propionyloxypropoxy)(4-phenylbutyl)phosphinoyl]acetic acid 123599-78-0
[(2-Methyl-1-propionyloxypropoxy)(4-phenylbutyl)phosphinoyl]acetic acid--cinchonidine (1:1) 123599-79-1
{(S) -[(R)-2-methyl-1-propionyloxypropoxy](4-phenylbutyl)phosphinoyl)acetic acid 128948-01-6
5-Methylpyrazine-2-carboxylic acid 5521-55-1
1-Methyl-1,2,5,6-tetrahydropyridine-3-carbaldehyde (E)-O-methyloxime hydrochloride 139886-04-7
1-Methyltetrazole-5-thiol 13183-79-4
5-Methyl-1,3,4-thiadiazole-2-thiol 29490-19-5
Methyl 1H-1,2,4-triazole-3-carboxylate 4928-88-5
2-Methyl-N-(α,α,α-trifluoro-m-tolyl)propionamide 1939-27-1
3-Methyl-2-(3,4,5-trimethoxyphenyl)butyronitrile 36622-33-0
4-Methylvalerophenone 645-13-6
4-Morphol in-2-ylpyrocatechol hydrochloride 13062-59-4
O-2-Naphthyl chlorothioformate 10506-37-3
4-Nitrobenzyl 7-amino-3-chloro-3-cephem-4-carboxylate 53994-83-5
4-Nitrobenzyl 3-methylene-7-(phenoxyacetamido)cepham-4-carboxylate 5-oxide 63427-57-6
111 STAT. 2882
Product Name CAS Number
4-Nitrobenzyl 6-(2-phenoxyacetamido)penicillanate 1-oxide 29707-62-8
p-Nitrobenzyl (2R,5R,6S)-6-[(R)-1-hydroxyethyl]-3,7-dioxo-1-azabicyclo[3.2.0]heptane-2-carboxylate 75363-99-4
3-(4-Nitrophenyl)-L-alanine 949-99-5
4-Nitrophenyl thiazol-5-ylmethyl carbonate hydrochloride 154212-59-6
1-(o-Tolyl)piperazine hydrochloride 70849-60-4
(E)-Oct-4-ene-1,8-dioic acid 48059-97-8
3-Oxo-4-aza-5-α-androstane-17-B-carboxylic acid 103335-55-3
3-Oxo-4-azaandrost-5-ene-17-B-carboxylic acid 103335-54-2
20-0xopregna-5,16-dien-3-B-yl acetate 979-02-2
3-Oxopregn-4-ene-21,17-α-carbolactone 976-70-5
2-Oxo-5-vinylpyrrolidine-3-carboxamide 71107-19-2
Pentamethylene bis{3-[1-(3,4-dimethoxybenzyl)-6,7-dimethoxy-1,2,3,4-tetrahydro-2-isoquinolyl]propionate}--oxalic acid (1:2) 64228-78-0
Pentyl chloroformate 638-41-5
(7RS,9aRS)-Perhydropyrido[1,2-a]pyrazin-7-ylmethanol 145012-50-6
Phenmetrazine teoclate (INNM) 13931-75-4
Phenothiazin-2-ylamine 32338-15-1
2-(3-Phenoxyphenyl)propiononitrile 32852-95-2
4-(4-Phenylbutoxy)benzoic acid 30131-16-9
(1R,2S,3S,6R)-[(S)-1-Phenylethyl]-3,6-epoxytetrahydrophthalimide D-α-Phenylglycine 875-74-1
Phenyl hydrogen phenylmalonate 21601-78-5
1-Phenylpiperazinium chloride 2210-93-7
2-Phenyl-2-(2-piperidyl)acetic acid 19395-41-6
N-Phenyl-N-(4-piperidyl)propionamide 1609-66-1
2-Phenylpropane-1,3-diol 1570-95-2
4-(Piperazin-1-yl)-2,6-bis(pyrrolidin-1-yl)pyrimidine 111641-17-9
2-Piperazin-1-ylpyrimidine dihydrochloride 94021-22-4
1-(4-Piperidyl)-1H-benzimidazol-2(3H)-one 20662-53-7
1-Piperonylpiperazine 32231-06-4
Potassium clavulanate--microcrystalline cellulose (1:1)
Potassium clavulanate--silicon dioxide (1:1)
Potassium clavulanate--sucrose (1:1)
Potassium 1-(1-hydroxyethyl)-5-methoxy-2-oxo-1,2,5,6,7,8,8a,8b-octahydroazeto[2,1-a]isoindole-4-carboxylate 141316-45-2
Potassium (R)-2-(4-hydroxyphenyl)-N-(3-methoxy-1-methyl-3-oxoprop-1-enyl)glycinate 69416-61-1
Potassium (R)-N-(3-methoxy-1-methyl-3-oxoprop-1-enyl)-2-phenylglycinate 34582-65-5
Purin-6(1H)-one 68-94-0
1-(2-Pyridyl)-3-(pyrrolidin-1-yl)-1-(p-tolyl)propan-1-ol 70708-28-0
Pyrrolidin-3-ylamine dihydrochioride 103831-11-4
N-(2-Quinolylcarbonyloxy)succinimide 136465-99-1
Quinuclidine 100-76-5
Quinuclidin-3-ol 1619-34-7
D-Ribose 50-69-1
Rifamycin O 14487-05-9
Sennoside A 81-27-6
Sennoside A, calcium salt 52730-36-6
Sennoside B 128-57-4
Sennoside B, calcium salt 52730-37-7
Sodium 4-chloro-1-hydroxybutane-1-sulfonate 54322-20-2
Sodium (R)-1-[(1-{3-[2-(7-chloro-2-quinolyl)vinyl]phenyl}-3-[2-(1-hydroxy-1-methylethyl)phenyl]propyl)thiomethyl]cyclopropylacetate 142522-81-4
Sodium 2-hydroxy-1-(4-hydroxy-3-methoxyphenyl)propane-2-sulfonate 83682-27-3
Sodium (R)-2-(4-hydroxyphenyl)-N-(3-methoxy-1-methyl-3-oxoprop-1-enyl)glycinate 26787-84-8
Sodium (R)-N-(3-methoxy-1-methyl-3-oxoprop-1-enyl)-2-phenylglycinate 13291-96-8
Sodium 4-[2-(5-methylpyrazine-2-carboxamido)ethyl]benzenesulfonamide 84522-34-9
N-(2-(4-Sulfamoyl)phenyl)ethyl-5-chloro-2-methoxybenzamide 16673-34-0
2,3,4,6-Tetra-O-acetyl-B-D-glucopyranosyl carbamimidothioate hydrobromide 40591-65-9
1,2,3,5-Tetraacetyl-B-D-ribofuranose 13035-61-5
1,4,7,10-Tetraazoniacyclododecane bis(sulfate) 112193-77-8
1,4,7,10-Tetraazacyclododecane-1,4,7-triacetic acid sulfate
1,4,7,10-Tetraazacyclododecane-1,4,7-triyl triacetic acid 114873-37-9
4-(2,2,3,3-Tetrafluoropropoxy)cinnamonitrile 123632-23-5
1-(Tetrahydro-2-furoyl)piperazine 63074-07-7
1,2,3,4-Tetrahydro-2-isopropylaminomethyl-6-methyl-7-nitroquinoline methanesulfonate 22982-78-1
1,2,3,4-Tetrahydro-9-methylcarbazol-4-one 27387-31-1
1,2,3,4-Tetrahydro-9-methyl-3-(2-methyl-1H-imidazol-1-ylmethyl)carbazol-4-one 99614-02-5
(RS)-Tetrahydropapaverine hydrochloride 66820-84-6
Tetrahydro-2-methyl-3-thioxo-1,2,4-triazine-5,6-dione 58909-39-0
1-(1,2,3,6-Tetrahydro-4-pyridyl)-1H-benzimidazol-2(3H)-one 2147-83-3
3,7,11,15-Tetramethylhexadec-1-en-3-ol 505-32-8
1H-Tetrazol-1-ylacetic acid 21732-17-2
Thiazol-5-ylmethanol 38585-74-9
Thiazol-5-ylmethyl (1S,2S,4S)-1-benzyl-2-hydroxy-4-{(2S)-2-[3-(2-isopropylthiazol-4-ylmethyl)-3-methylureido]-3-methylbutyramido}-5-phenylpentylcarbamate 155213-67-5
2-Thienylacetyl chloride 39098-97-0
3-Thienylmalonic acid 21080-92-2
Thiophene-2-carbonyl chloride 5271-67-0
1H-1,2,4-Triazole-3-carboxamide 3641-08-5
1H-1,2,4-Triazole-3-carboxylic acid 4928-87-4
1,2,4-Triazolo[4,3-a]pyridin-3(2H)-one 6969-71-7
2,2′,4′-Trichloroacetophenone 4252-78-2
Tri ethyl 3-bromopropane-1,1,1-tricarboxylate 71170-82-6
111 STAT. 2883
Product Name CAS Number
N′6-Trifluoroacetyl-L-lysyl-L-proline 103300-89-6
N′6-Trifluoroacetyl-L-lysyl-L-protine p-toluenesulfonate 105641-23-4
α′ ,α′,α′-Trifluoro-2,3-xylidine 54396-44-0
11-α, 17,21-Trihydroxy-16-B-methylpregna-1,4-diene-3,20-dione 85700-75-0
3,4,5-Trimethoxyphenylacetonitrile 13338-63-1
2,3,5-Trimethylhydroquinone 700-13-0
5′-O-Tritylthymidine 55612-11-8
3′-O-mesyl-5′-O-Tritylthymidine 104218-44-2
6983 April 8, 1997 National Former Prisoner of War Recognition Day, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6983 of April 8, 1997
National Former Prisoner of War Recognition Day, 1997 By the President of the United States of America A Proclamation

Throughout the annals of American military history, our men and women in uniform have placed themselves in great peril for the benefit of our Nation. Many of these courageous guardians of our freedoms have been held against their will as prisoners of war. The American people, including those now serving in our Armed Forces, continue to hold in the highest esteem these men and women who suffered the loss of their personal freedom and, in some instances, their lives.

Although there is no threat of a major conflict in our immediate future, we face continuing military challenges, and our Armed Forces still deploy “in harm’s way” to maintain American interests and stability throughout the world. Whether attempting to keep the peace in Bosnia, evacuating American citizens from Albania, or patrolling the world’s seas and skies, our service men and women risk capture by unfriendly foreign forces.

American prisoners of war have always proudly struggled for their freedom and have demonstrated a profound dedication to their country. Although international law, as set forth in the Geneva Convention, confers a protected status on prisoners of war, many Americans faced difficult conditions, including torture, but they persevered, taking comfort in their love of God, family, and country. We can never know the extent of the brutality and hardships many of them encountered, but we can express our sincere admiration for their courage and bravery.

As we observe National Former Prisoner of War Recognition Day, we honor and recognize all American service personnel who endured detention or captivity in the service of their Nation. We take comfort in knowing that despite enduring daily physical and mental trials, many survived and returned to productive lives at home. But we remember and pay homage and respect to those who made the ultimate sacrifice while in enemy hands. Today, we enjoy the freedoms that generations of American men and women have fought to defend. Let us extend to Americans who were prisoners of war, and to their families, our profound gratitude for their unselfish contribution to the preservation of our country. We will never forget.

111 STAT. 2884

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim April 9, 1997, as National Former Prisoner of War Recognition Day. I call upon all Americans to join in remembering former American prisoners of war who suffered the hardships of enemy captivity. I also call upon Federal, State, and local government officials and private organizations to observe this day with appropriate ceremonies, programs, and activities.

IN WITNESS WHEREOF, I have hereunto set my hand this eighth day of April, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6984 April 9, 1997 National D.A.R.E. Day, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6984 of April 9, 1997
National D.A.R.E. Day, 1997 By the President of the United States of America A Proclamation

Today we honor Drug Abuse Resistance Education (D.A.R.E.), the largest and most widely recognized substance abuse prevention and safety-promotion curriculum in the Nation. First developed in 1983, D.A.R.E. has continued to improve its methods as research findings have increased our knowledge of effective substance abuse prevention among school-age youth. More than 70 percent of America’s school districts have adopted the program, and over 8,000 cooperative partnerships between law enforcement agencies and school districts now exist across the country. By virtue of D.A.R.E.’s expansive use and national impact, this acronym has achieved broad name recognition in association with substance abuse prevention, making the D.A.R.E. officer one of the most recognizable symbols for community policing and prevention.

Students, parents, police officers, and school administrators have long been familiar with the benefits of the D.A.R.E. program, and research has shown that ongoing reinforcement of drug prevention skills is critical in decreasing the likelihood of drug use by our youth.

Today and throughout the year, let us recognize D.A.R.E. as a model of partnership between educators, law enforcement, parents, and students, and let us commend D.A.R.E. officers for their dedicated efforts to help educate the children of America about the importance of remaining drug free.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim April 10, 1997, as National D.A.R.E. Day. I call upon our youth, parents, and educators, and all the people of the United States to observe this day with appropriate activities.

IN WITNESS WHEREOF, I have hereunto set my hand this ninth day of April, in the year of our Lord nineteen hundred and ninety-seven, 111 STAT. 2885and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6985 April 10, 1997 National Pay Inequity Awareness Day, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6985 of April 10, 1997
National Pay Inequity Awareness Day, 1997 By the President of the United States of America A Proclamation

Although more than three decades have passed since the Equal Pay Act and Title VII of the Civil Rights Act were signed into law, women working full-time and year round in the United States, on average, still earn only 71 percent of the wages earned by men. This means that, for the 1996 calendar year, the wages of the average American female worker will not match those of the average male worker until April 11 of this year.

Although the pay gap has narrowed over the past two decades, unfair pay practices persist in many U.S. business sectors. Paying a woman less than a male co-worker with equal skills and job responsibilities hurts that woman and her family—not only in immediate material benefit, but also in her ability to invest and save for retirement. Working women deserve—and are demanding—fair and equal pay for their time spent on the job. Over a quarter of a million women surveyed by the Department of Labor indicated that “improving pay scales” is one of their highest priorities in bringing fairness to the workplace.

To address this problem, my Administration has moved on several fronts simultaneously: I signed the increase in the minimum wage into law, initiated a pension education campaign, strengthened equal employment law enforcement, and created a Women’s Bureau Fair Pay Clearinghouse at the Department of Labor, which disseminates information on working women's wages and occupations and on organizations that are active in improving women’s wages. In addition, my Administration, with over 200 private-sector partners, has formed the American Savings Education Council to educate women and men on how they can ensure their financial independence in retirement. Together with renewed attention focused on the reality of pay inequity and what it means for working women across the country, these initiatives create real opportunities for employers, working women, and organizations to develop new and effective approaches that achieve pay equity.

Strong enforcement of equal employment laws also plays a critical role in resolving unfair pay. The Equal Employment Opportunity Commission enforces laws that make it illegal to discriminate in wages, or to limit or segregate job applicants or employees in any way that would deprive them of opportunities because of sex. race, color, religion, age, national origin, or disability.

The Department of Labor’s Office of Federal Contract Compliance Programs enforces nondiscrimination and affirmative action laws that apply to employers that do business with the Federal Government, en-111 STAT. 2886suring that Government contractors prevent and remedy discrimination and resolve matters of pay equity.

It is vital that we aggressively enforce our pay equity laws. Women deserve to be rewarded on an equal basis for their contributions to the American work force.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States of America, do hereby proclaim April 11, 1997, as National Pay Inequity Awareness Day. I call upon Government officials, law enforcement agencies, business and industry leaders, educators, and all the people of the United States to recognize the full value of the skills and contributions of women in the labor force.

IN WITNESS WHEREOF, I have hereunto set my hand this tenth day of April, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6986 April 11, 1997 National Service and Volunteer Week, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6986 of April 11, 1997
National Service and Volunteer Week, 1997 By the President of the United States of America A Proclamation

Citizen service is a vital force in American life, helping to build a stronger sense of community and citizenship and engaging Americans to meet the obligations we all share. Whether tutoring children, mentoring teens, renovating housing, restoring public parks, responding to natural disasters, or caring for aging parents and grandparents, those who serve and volunteer are strengthening our communities for America’s future.

The era of big government may be over, but the era of big challenges for our Nation is surely not. Citizen service reflects one of the most basic convictions of our democracy: that we are all responsible for one another. It is a very American idea that we meet our challenges not through big government or as isolated individuals, but as members of a true community, with all of us working together.

Americans can take pride in knowing that our tradition of service is being preserved and expanded. As we recognize the devoted service of our Nation’s citizens, we must continue to foster the spirit of volunteerism, making service the common expectation and experience of every American. Working together, we can respond to our shared problems and build a better future for the generations to come.

National Service and Volunteer Week is a time to celebrate the American spirit of service and volunteerism and a time to encourage citizens to use their individual talents to serve the common good. During this week and throughout the year, let us salute all those who devote their time, their talents, and their energy to improving our communities—through organizations like AmeriCorps and other programs within the 111 STAT. 2887

Corporation for National Service; the Points of Light Foundation; Learn and Serve America; the National Senior Service Corps; and thousands of other voluntary, civic, religious, and neighborhood groups.

Later this month, at Independence Hall in Philadelphia, we will convene an historic Presidents’ Summit on Service. I will be joined there by every living former president, or his representative, and other prominent Americans as we take specific steps to serve our children and to rebuild our communities. Our mission is nothing less than to spark a renewed national sense of obligation, a new sense of duty, a new season of service.

I hope that the many related activities in the days leading up to this important event will make all Americans think about our shared responsibility for one another. Citizen service can take many shapes—it can mean joining AmeriCorps as a high school student, volunteering nights or on weekends in a religious group or neighborhood association, or devoting years of one's life to service in the Peace Corps or in the Jesuit Volunteer Corps.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim the week of April 13 through April 19, 1997, as National Service and Volunteer Week. I call upon all Americans to observe this week with appropriate programs, ceremonies, and activities to express appreciation for all those who serve and to encourage others to continue the American legacy of service.

IN WITNESS WHEREOF, I have hereunto set my hand this eleventh day of April, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6987 April 11, 1997 Pan American Day and Pan American Week, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6987 of April 11, 1997
Pan American Day and Pan American Week, 1997 By the President of the United States of America A Proclamation

Each year, we pause to reflect on how the 34 free countries of the Western Hemisphere are inextricably linked to a shared vision through the common thread of democracy, free trade, and mutual respect. This vision can be achieved by continuing our efforts to create a hemispheric free trade area and by working together to uphold democracy, defend human rights, and defeat the scourge of narcotics trafficking.

The citizens of the Americas have made remarkable progress toward the advancement of democratic values and institutions, as well as the creation of integrated markets within which goods may be exchanged freely in a common market of ideas and innovation. Today, every country in our hemisphere—with one exception—has made the promise of democracy a reality. These countries have recognized that representative democracy is essential for guaranteeing the basic human 111 STAT. 2888rights of their citizens. Through common effort, we can make this gift of freedom a reality for all.

The United States applauds the people of Paraguay for their great accomplishment in resolving last year's constitutional crisis, and we welcome the central role of the Organization of American States in defending democracy in Paraguay. We commend the people and government of Guatemala for their success in forging a comprehensive peace accord, and we encourage the spirit of reconciliation that has firmly taken root throughout Central America. Americans continue to maintain a special consideration for the people of Haiti as they strive to consolidate their new democracy and set the stage for economic growth. Today, all of us must work together to encourage the one country—Cuba—that has not embraced our common purpose to join the community of democracies.

As the united standard bearers of democracy in the Western Hemisphere, we now approach a new century of unprecedented possibilities. Our vision is bold, and our expectations are high. Our cooperative spirit was nurtured through the Summit of the Americas, where we committed ourselves to free trade, representative democracy, relief from poverty, and respect for the environment. We are now collaborating closely with others in the hemisphere to prepare the agenda for the next Summit of the Americas, to be held in Santiago in March 1998. Never before has there been such a window of opportunity to promote a higher standard of living through improved access to quality education and adequate health care. Working together, we can prove that democracy provides the means for improving the daily lives of all the citizens of the Americas.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim Monday, April 14, 1997, as Pan American Day and April 13 through April 19, 1997, as Pan American Week. I urge the Governors of the 50 States, the Governor of the Commonwealth of Puerto Rico, and the officials of other areas under the flag of the United States of America to honor these observances with appropriate ceremonies and activities.

IN WITNESS WHEREOF, I have hereunto set my hand this eleventh day of April, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6988 April 11, 1997 To Modify Application of Duty-Free Treatment Under the Generalized System of Preferences Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6988 of April 11, 1997
To Modify Application of Duty-Free Treatment Under the Generalized System of Preferences By the President of the United States of America A Proclamation

1. Sections 502(d)(1) and 503(c)(1) of the Trade Act of 1974, as amended by Public Law 104–188; 110 Stat. 1755, 1920, 1922 (“the 1974 Act”) 111 STAT. 2889(19 U.S.C. 2462(d)(1) and 2463(c)(1)), provide that the President may withdraw, suspend, or limit the application of the duty-free treatment accorded under the Generalized System of Preferences (GSP) with respect to any country and any article upon consideration of the factors set forth in sections 501 and 502(c) of the 1974 Act (19 U.S.C. 2461 and 2462(c)). Pursuant to sections 502(d)(1) and 503(c)(1) of the 1974 Act and having considered the factors set forth in sections 501 and 502(c) of such Act, including, in particular, section 502(c)(5) (19 U.S.C. 2464(c)(5)) on the extent to which a designated beneficiary developing country is providing adequate and effective protection of intellectual property rights, I have determined that it is appropriate to suspend the duty-free treatment accorded under the GSP to certain eligible articles that are the product of Argentina, as provided in the Annex to this proclamation.

2. Section 604 of the 1974 Act, as amended (19 U.S.C. 2483), authorizes the President to embody in the Harmonized Tariff Schedule of the United States (HTS) the substance of the relevant provisions of that Act, and of other acts affecting import treatment, and actions thereunder, including the removal, modification, continuance, or imposition of any rate of duty or other import restriction.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, acting under the authority vested in me by the Constitution and the laws of the United States, including but not limited to sections 502(d)(1), 503(c)(1), and 604 of the 1974 Act, do proclaim that:

(1) In order to provide that Argentina should no longer be treated as a beneficiary developing country with respect to certain eligible articles for purposes of the GSP, the HTS is modified as provided in the Annex to this proclamation.

(2) Any provisions of previous proclamations and Executive orders that are inconsistent with the actions and provisions of this proclamation are superseded to the extent of such inconsistency.

(3) The modifications made by this proclamation shall be effective with respect to articles both: (i) imported on or after January 1, 1976, and (ii) entered, or withdrawn from warehouse for consumption, on or after 30 days after the date of publication of this proclamation in the Federal Register.

IN WITNESS WHEREOF, I have hereunto set my hand this eleventh day of April, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 111 STAT. 2890 ANNEX MODIFICATIONS OF TARIFF TREATMENT UNDER THE GENERALIZED SYSTEM OF PREFERENCES FOR CERTAIN GOODS THE PRODUCT OF ARGENTINA

Effective with respect to articles both (1) imported on or after January 1, 1976, and (ii) entered, or withdrawn from warehouse for consumption, on or after the date which is 3.0 days after the date of publication of this proclamation in the Federal Register, the Harmonized Tariff Schedule of the United States (“HTS”) is modified as set forth below:

(1) General note 4(d) to the HTS is modified by: (a) inserting in numerical sequence the following HTS subheadings and the country set out opposite such subheadings:
0303.77.00 Argentina 7901.12.50 Argentina
0404.90.10 Argentina 8207.20.00 Argentina
0703.20.00 Argentina 8409.91.99 Argentina
3901.90.90 Argentina 8413.91.90 Argentina
3902.10.00 Argentina 8422.30.90 Argentina
3902.20.50 Argentina 8431.49.10 Argentina
3902.90.00 Argentina 8471.49.37 Argentina
3903.90.50 Argentina 8471.60.57 Argentina
3904.40.00 Argentina 8477.51.00 Argentina
3906.10.00 Argentina 8479.20.00 Argentina
3906.90.50 Argentina 8480.30.00 Argentina
3907.30.00 Argentina 8481.30.20 Argentina
3907.60.00 Argentina 8481.80.30 Argentina
3907.99.00 Argentina 8481.80.90 Argentina
3909.10.00 Argentina 8481.90.30 Argentina
3909.50.50 Argentina 8503.00.65 Argentina
3913.90.20 Argentina 8524.31.00 Argentina
3921.90.50 Argentina 8524.32.00 Argentina
3923.90.00 Argentina 8524.52.10 Argentina
4201.00.60 Argentina 8524.60.00 Argentina
4303.10.00 Argentina 8524.91.00 Argentina
4303.90.00 Argentina 8524.99.40 Argentina
4410.11.00 Argentina 8536.90.00 Argentina
4410.19.00 Argentina 8538.90.80 Argentina
4802.52.10 Argentina 8708.60.80 Argentina
7007.11.00 Argentina 8708.70.60 Argentina
7114.11.60 Argentina 8708.99.80 Argentina
7308.90.95 Argentina 8716.90.50 Argentina
7315.90.00 Argentina 9003.90.00 Argentina
7409.11.50 Argentina 9018.90.10 Argentina
7409.21.00 Argentina 9113.10.00 Argentina
7419.99.50 Argentina 9113.20.60 Argentina
7901.11.00 Argentina 9403.20.00 Argentina
9403.50.90 Argentina
(b) inserting in alphabetical sequence the country set out opposite the following HTS subheadings:
1604.16.10 Argentina 2849.10.00 Argentina
1701.11.10 Argentina 2850.00.50 Argentina
2805.40.00 Argentina 2902.11.00 Argentina
2813.90.50 Argentina 2905.12.00 Argentina
2832.30.10 Argentina 2905.13.00 Argentina
2839.90.00 Argentina 2905.22.50 Argentina
2841.30.00 Argentina 2906.14.00 Argentina
2841.50.00 Argentina 2914.12.00 Argentina
2843.30.00 Argentina 2914.13.00 Argentina
111 STAT. 2891
2915.70.00 Argentina 3305.90.00 Argentina
2917.14.50 Argentina 3307.20.00 Argentina
2918.21.50 Argentina 3307.49.00 Argentina
2918.22.10 Argentina 3401.11.10 Argentina
2918.22.50 Argentina 3504.00.50 Argentina
2929.10.15 Argentina 3506.99.00 Argentina
2932.99.90 Argentina 3701.10.00 Argentina
2933.40.30 Argentina 3702.10.00 Argentina
2933.90.55 Argentina 3706.10.30 Argentina
3209.90.00 Argentina 3707.90.32 Argentina
3301.19.10 Argentina 3822.00.50 Argentina
3301.90.10 Argentina 4011.10.10 Argentina
3302.10.10 Argentina 4411.11.00 Argentina
3302.10.20 Argentina 6910.90.00 Argentina
3302.90.10 Argentina 7202.21.50 Argentina
3303.00.30 Argentina 7202.30.00 Argentina
3304.20.00 Argentina 8409.91.50 Argentina
3304.99.50 Argentina 8409.99.91 Argentina
3305.10.00 Argentina 9403.60.80 Argentina
(2) For the following HTS subheadings, in the Rates of Duty 1-Special subcolumn, delete the symbol “A” and insert an “A*” in lieu thereof:
0303.77.00 4410.19.00 8481.80.90
0404.90.10 4802.52.10 8481.90.30
0703.20.00 7007.11.00 8503.00.65
3901.90.90 7114.11.60 8524.31.00
3902.10.00 7308.90.95 8524.32.00
3902.20.50 7315.90.00 8524.52.10
3902.90.00 7409.11.50 8524.60.00
3903.90.50 7409.21.00 8524.91.00
3904.40.00 7419.99.50 8524.99.40
3906.10.00 7901.11.00 8536.90.00
3906.90.50 7901.12.50 8538.90.80
3907.30.00 8207.20.00 8708.60.80
3907.60.00 8409.91.99 8708.70.60
3907.99.00 8413.91.90 8708.99.80
3909.10.00 8422.30.90 8716.90.50
3909.50.50 8431.49.10 9003.90.00
3913.90.20 8471.49.37 9018.90.10
3921.90.50 8471.60.57 9113.10.00
3923.90.00 8477.51.00 9113.20.60
4201.00.60 8479.20.00 9403.20.00
4303.10.00 8480.30.00 9403.50.90
4303.90.00 8481.30.20
4410.11.00 8481.80.30
6989 April 15, 1997 National Crime Victims’ Rights Week, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6989 of April 15, 1997
National Crime Victims’ Rights Week, 1997 By the President of the United States of America A Proclamation

During National Crime Victims’ Rights Week, Americans in communities across the country join together to honor victims and survivors, to remember their pain, and to recognize their many contributions to improving our criminal justice system and helping others affected by crime. It is also an occasion for us to acknowledge our significant progress in securing crucial rights and services for crime victims.

As we reflect on the events of this past year, we think of all our fellow citizens who became victims of crime on our streets, at home, in our neighborhoods, in our schools, in our workplaces, and even in our sacred places of worship. We remember the images of dozens of mostly African American churches being consumed in flames, and we recall 111 STAT. 2892church leaders and their congregations, representing all denominations and races, reaching out to invite healing and rebuilding—not in isolation, but in an extraordinary spirit of community and unity. We also remember the many contributions of crime victims in pioneering crime prevention programs in our schools and working to strengthen our laws and to enlighten all of us about the needs of all crime victims.

Through the dedicated efforts of crime victims and their advocates, criminal justice workers, and responsive legislators, we have made important strides in the struggle against violence. The Violent Crime Control and Law Enforcement Act of 1994 allocated an increase in resources for criminal justice programs, deploying thousands of new police officers on our streets. The Brady Bill has prevented over 225,000 felons, fugitives, and stalkers from buying handguns since it was enacted. And the Community Notification Act. known as “Megan’s Law,” is helping us protect our most vulnerable citizens by informing communities of the presence of convicted pedophiles. With community notification, we are working to prevent cases like that of the Act's namesake, Megan Kanka, a 7 year-old who died at the hands of a repeat sex offender released into an unsuspecting community. With these and other preventive measures, we’ve managed to reduce the rate of violent crime for 5 straight years and to restore hope of reaching our goal of a peaceful America.

We can also take heart in our efforts to assist victims in need of justice and healing in the aftermath of violent crimes. The Violence Against Women Act, a historic and comprehensive plan targeted at ending crimes against women, has provided much-needed services to countless domestic violence victims and their children. Likewise, the National Domestic Violence Hotline, established last year, has responded to more than 73,000 calls for assistance from around the country. As a result of over $500 million in deposits to the Federal Crime Victims Fund in fiscal 1996, the States will receive more than three times as much in Federal funds as they have received in any previous year to support local victim assistance programs. And the Antiterrorism Act has guaranteed restitution to victims of Federal crimes and mass violence; it has already provided substantial assistance to victims of the Oklahoma City bombing.

This year, we can take one more historic step to ensure that victims throughout our country are guaranteed the fundamental rights to be present at proceedings, to be informed of significant developments in their cases and of their rights, and to be heard at sentencing and other appropriate times throughout the criminal justice process. The Congress should pass a Victims' Rights Amendment to the United States Constitution that will, when ratified by the States, ensure that crime victims are at the center of the criminal justice process, not on the outside looking in.

We must stand united in caring for and assisting crime victims throughout our country.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim April 13 through April 19, 1997, as National Crime Victims' Rights Week. I urge all Americans to follow in the example of victim advocates and reaffirm our common purpose to protect and comfort one another in times 111 STAT. 2893of hardship—not only during this special week but also throughout the year.

IN WITNESS WHEREOF, I have hereunto set my hand this fifteenth day of April, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6990 April 17, 1997 Education and Sharing Day, U.S.A., 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6990 of April 17, 1997
Education and Sharing Day, U.S.A., 1997 By the President of the United States of America A Proclamation

A commitment to learning has been at the heart of America’s progress for more than 200 years. Now, as we stand on the threshold of the 21st century, our continued success as a Nation depends on the quality of education that we provide to all our citizens.

American children must have all the tools they need to make the most of their God-given potential. We must help them harness the powerful forces of technology, so that every student, including those in the most isolated rural towns and those in the poorest inner-city schools, has access to the vast universe of knowledge available on the Internet.

However, education involves more than books, facts, and homework assignments. Education also concerns the building of character. Character is an anchor of our society, and we should work hard to cultivate it among our young people. If our Nation is to continue to thrive and prosper, we must continue to live up to our ideals.

Rabbi Menachem Mendel Schneerson, the Lubavitcher Rebbe, grasped these fundamental truths. Espousing the values of education, morality, and civic duty throughout his distinguished life, he understood that learning and the sharing of experiences are crucial to developing the skills that will mold the character of each new generation. By striving to provide the best education possible, we can better prepare our Nation for the challenges that confront us as we move forward into the next century. The Rebbe rightly saw education as a continuous process of effort and experience, in which each person is nurtured from the cradle throughout life, bringing out the best in all of us.

I urge all Americans, on this day and throughout the year, to remember the teachings of the Rebbe, and to work in partnership with educators, administrators, community leaders, and parents to help our young people thrive and prosper.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim April 18, 1997, as Education and Sharing Day, U.S.A. I call upon all Americans to observe this day with appropriate activities and programs.

IN WITNESS WHEREOF, I have hereunto set my hand this seventeenth day of April, in the year of our Lord nineteen hundred and ninety-111 STAT. 2894seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6991 April 18, 1997 National Day of Prayer, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6991 of April 18, 1997
National Day of Prayer, 1997 By the President of the United States of America A Proclamation

America was born out of intense conflict as our forefathers fought the forces of oppression and tyranny. From our earliest history, Americans have always looked to God for strength and encouragement in those moments when darkness seemed to encroach from every side. Our people have always believed in the power of prayer and have called upon the name of the Lord through times of peace and war, hope and despair, prosperity and decline.

In his first inaugural address, during the rush of optimism that followed the Colonies’ uplifting victory in the American Revolution, George Washington observed that “it would be peculiarly improper to omit, in this first official act my fervent supplications to that Almighty Being who rules over the universe.” Amid the bleak turmoil of the Civil War, Abraham Lincoln conveyed similar sentiments by calling Americans to “a firm reliance on Him who has never yet forsaken this favored land.” Almost a century later, Harry Truman emphasized the need for God’s help in making decisions: “when we are striving to strengthen the foundation of peace and security we stand in special need of divine support.”

Indeed, the familiar phrase “In God we trust,” which has been our national motto for more than 40 years and which first appeared on our coinage during the Civil War, is a fitting testimony to the prayers offered up by American women and men through the centuries. Today within our Nation’s Capitol Building, a stained glass window depicts General Washington humbly kneeling and repeating the words of the 16th Psalm, “Preserve me, O God, for in Thee do I put my trust.”

As we face the last years of the 20th century, let us uphold the tradition of observing a day in which every American, in his or her own way, may come before God seeking increased peace, guidance, and wisdom for the challenges ahead. Even as we continue to work toward hopeful solutions, may our national resolve be matched by a firm reliance on the Author of our lives—for truly it is in God that we trust.

The Congress, by Public Law 100–307, has called our citizens to reaffirm annually our dependence on Almighty God by recognizing a “National Day of Prayer.”

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim May 1, 1997, as a National Day of Prayer. As in previous years, let us once again celebrate this day in the tradition of our Founders by humbly asking for divine help in maintaining the courage, determination, faith, and vigilance so necessary to our continued advancement as a people. On this National Day 111 STAT. 2895of Prayer, may all Americans come together to reaffirm our reliance upon our Creator, and, in the words of Franklin Roosevelt, to “pray to Him now for the vision to see our way clearly.”

IN WITNESS WHEREOF, I have hereunto set my hand this eighteenth day of April, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6992 April 19, 1997 National Organ and Tissue Donor Awareness Week, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6992 of April 19, 1997
National Organ and Tissue Donor Awareness Week, 1997 By the President of the United States of America A Proclamation

Giving life to another through an organ or tissue transplant is one of the most selfless human acts. The person choosing to become a donor usually receives no tangible thanks and gains no fame or glory from the gesture. And yet the decision to sign a donor card does give the donor a quiet, inner fulfillment in the knowledge that he or she may one day help save a life, bringing new joy to another person and their family. Often, for many Americans, this sense of fulfillment is sufficient thanks.

Today, more than 50,000 Americans are on the national transplant waiting list and about 2,000 more people need transplants every month. Unfortunately, even though this country has an adequate supply of individuals who qualify as organ donors, many people have still not chosen to become one. Patients in truly desperate circumstances are depending on their fellow Americans to choose to become organ and tissue donors.

Stunning advances in transplant research and technology have made miracles possible, but we must do our part to make the dreams of people awaiting transplants become reality. Many Americans are unaware of the national shortage of organ donors, and all of us must work together to spread the word.

Let us take advantage of our enormous power to save a life or to enrich the quality of life for those who otherwise face endless pain, torment, or death. I urge every American to respond to the urgent call for organ and tissue donors by signing a donor card immediately. Let us also reach out to educate our fellow Americans about the importance of organ and tissue donations. We must work with our religious communities and community organizations to spread this important message. The Federal Government has already established partnerships with the Union of Hebrew Congregations and the Congress of National Black Churches in an effort to educate congregations and clergy across our Nation through sermons. Sunday school programs, and community events. We should do more.

We should recognize that our greatest ambassadors for organ and tissue donation are donors, donor families and recipients. Their personal stories have motivated and inspired others, and we should take better ad-111 STAT. 2896vantage of these great resources. Taken together, these and other efforts will save the lives of countless loved ones. And we should take the opportunity to recognize and celebrate Americans who donate these gifts of life.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim April 20 through April 26, 1997, as National Organ and Tissue Donor Awareness Week. I call upon health care professionals, educators, the media, public and private organizations concerned with organ donation and transplantation, and all the people of the United States to observe this week with appropriate activities and programs that promote organ donation and invite new donors to become involved.

IN WITNESS WHEREOF, I have hereunto set my hand this nineteenth day of April, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6993 April 19, 1997 National Wildlife Week, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6993 of April 19, 1997
National Wildlife Week, 1997 By the President of the United States of America A Proclamation

Our Nation is blessed with a wealth of wildlife, wild places, and natural resources that enrich the lives of all Americans. Conserving our wildlife—whether antelope or grizzly bear, salmon or serpent, or plumed bird—is of urgent importance. Our vast system of wildlife refuges has played a vital role in this endeavor. Helping to ensure greater harmony between people and nature, more than 92 million acres of land and waters are dedicated to wildlife conservation, encompassing 500 refuges, with at least one in every State and within a short drive of most major cities. These wonderful resources provide opportunities for people of all ages and from all walks of life, and from cities, suburbs, and the rural heartland, to learn about and participate in the effort to preserve the places and wildlife that contribute so much to our Nation’s heritage and natural wealth.

The appreciation and protection of wildlife, particularly of endangered or threatened species, is both the right and responsibility of all Americans. Indeed, countless individuals and private volunteer organizations across the United States have already made a significant contribution to wildlife protection. Only by engaging communities in conservation, by taking note of and rewarding community service efforts, and by maintaining diverse approaches to wildlife protection, can we preserve our wildlife today and for future generations.

We set aside this week to celebrate the role that citizens and private volunteer organizations play in engaging in service activities, and in advancing the knowledge, appreciation, and protection of wildlife and the environment. Let us also work to spread this message to broader audiences and encourage all individuals and groups to contribute to 111 STAT. 2897this national goal. I urge all Americans, private organizations, businesses, community leaders, elected officials and governmental agencies to do all they can to preserve and value the role of wildlife resources in our lives. This tradition of nature education will continue to teach our children how to be lifelong stewards of the environment and help to build the knowledge and understanding essential to the protection of nature’s abundant gifts.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim April 20 through April 26, 1997, as National Wildlife Week. I ask all Americans to find ways to promote the conservation and protection of our wildlife and wild places.

IN WITNESS WHEREOF, I have hereunto set my hand this nineteenth day of April, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6994 April 19, 1997 National Park Week, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6994 of April 19, 1997
National Park Week, 1997 By the President of the United States of America A Proclamation

One hundred and twenty-five years ago, America made a momentous decision: to set aside and protect in perpetuity an extraordinary part of our young Nation. With the signing of the Yellowstone National Park Act on March 1, 1872, President Ulysses S. Grant created the world’s first national park, and the succeeding years have proved beyond all doubt the wisdom and foresight of that decision. Known throughout the world for its beauty and the natural wonders that lie within its boundaries, Yellowstone has inspired the creation of a multitude of other national parks, both here and in other countries, preserving for future generations the rich natural and cultural legacy of our world.

Today, our 374 national parks protect America’s unparalleled wonders and the history of those who have helped shape our land. Our national parks preserve both where we live and who we are. In America’s national parks, we see Americans through their experiences—war and peace, tragedy and triumph, struggle and liberty. Our national park sites invite us not only to marvel at the grand geography of Yellowstone or the Great Smokies, but also to explore the innovative genius of Thomas Edison at the Edison National Historic Site in New Jersey, to visit the remains of an ancient civilization at Mesa Verde in Colorado, or to walk the hallways of the Kansas school where the struggle for civil rights ultimately led to the landmark Brown vs. Board of Education Supreme Court decision.

In addition to the parks themselves, the national park spirit thrives in thousands of communities across the country where the National Park Service provides support and technical advice to create close-to-home 111 STAT. 2898recreational opportunities and to honor local history through programs such as Rivers, Trails, and Conservation Assistance, the National Register of Historic Places, and National Historic Landmarks. The National Park Service, in partnership with organizations and individuals dedicated to conservation and historic preservation, is ensuring that our national parks touch the lives of as many people as possible, while sparking an interest among our Nation’s children in archaeology, ethnography, history, historic landscapes, and historic structures.

Indeed, the national parks remain a magnet for the American public. Every year millions of visitors flock to them—270 million in 1996. Surveying our history and heritage, our national parks let us reach out and touch the past.

As we observe this week, let us remember with gratitude all those who are and have been entrusted with the stewardship of these treasured places. As the parks and the mandate of the National Park Service have evolved, the demands on those who manage these resources have become more complex and the skills required of the National Park Service work force have become more sophisticated. These men and women are the guardians of our cultural and natural treasures, and, on behalf of all Americans, I express my deepest thanks.

This year. National Park Week celebrates the strength of our unique and diverse system of national parks, and I urge all Americans to share in the wonderful experiences these places offer all of us.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim April 21 through April 27, 1997, as National Park Week.

IN WITNESS WHEREOF, I have hereunto set my hand this nineteenth day of April, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6995 April 22, 1997 Law Day, U.S.A., 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6995 of April 22, 1997
Law Day, U.S.A., 1997 By the President of the United States of America A Proclamation

This is the 40th year that Americans have celebrated the first day of May as Law Day, a special time to reflect on our legal heritage. It is an opportunity for all Americans to pause and consider how the rule of law has contributed to the freedoms we enjoy, and to our greatness as a Nation.

The theme of this year’s Law Day commemoration. “Celebrate Your Freedom,” focuses on the one concept that most defines us as a Nation. It was freedom that we fought for when we created this country. It is freedom that still sets us apart from many of the world’s nations. And it is freedom’s lamp that still beckons the oppressed to America from all parts of the globe.

111 STAT. 2899

The quest to ensure our freedom is the essence of what it means to be an American, and the bulwark of our freedom is the law and the legal system. James Madison once observed that if men were angels, governments would not be necessary. Laws are the instruments by which the people, through their government, protect themselves from, and regulate their relations with, each other. At the same time, laws also serve to restrain the power of that government. Finding the proper balance between the conflicting interests and rights of individuals, corporations, and government has never been easy. But we rely on the rule of law itself to protect all that is most precious to us. Without it, other nations have descended into a state where force alone prevails and justice is a mere hope.

Thanks to the genius of our Founders and the Constitutional system they created, Americans have witnessed the steady march of progress toward an open, inclusive society. We vote in free, fair elections. We worship according to our own faith. We associate freely with whomever we choose. And we are able to express our disagreements with our government freely and openly. These rights, routinely accepted today, have been maintained only through years of testing and reinforcement in our Federal and State courts, which have continued to extend freedom and liberty across the land.

So when we celebrate our freedom, we also celebrate a system of law that makes freedom possible. For more than two centuries, we have prospered and endured because we have relied on that system of law. We must keep that system strong and vibrant in our national life.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, in accordance with Public Law 87–20 of April 7, 1961, do hereby proclaim May 1, 1997, as Law Day. I urge the people of the United States to use this occasion to consider anew how our laws protect our freedoms and contribute to our national well-being. I call upon members of the legal profession, civic associations, educators, librarians, public officials, and the media to promote the observance of this day with appropriate programs and activities. I also call upon public officials to display the flag of the United States on all government buildings throughout the day.

IN WITNESS WHEREOF, I have hereunto set my hand this twenty-second day of April, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6996 May 1, 1997 Older Americans Month, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6996 of May 1, 1997
Older Americans Month, 1997 By the President of the United States of America A Proclamation

Each year we set aside the month of May as a special time to pay tribute to older Americans and to acknowledge their many contributions to our national life. For the better part of this century, through tough times and good times, these Americans have raised families, strength-111 STAT. 2900ened our economy, defended our Nation, and reaffirmed our deepest values. All of us who are heirs to their service and sacrifice owe them a profound debt of gratitude.

The theme of this year’s observance, “Caregiving: Compassion in Action,” reminds us of one of the most important ways in which we can repay that debt. Each day across America, some 22 million caregivers and volunteers dedicate themselves to improving the quality of life for older family members, friends, and neighbors. By providing personal care, housekeeping, transportation, and innumerable other services and assistance, these caregivers enable many older Americans to remain in their own homes and communities, maintaining a precious measure of dignity and independence.

As America’s population of older Americans continues to grow in number, we will have an even greater need to call on the skills and compassion of caregivers. In keeping with the spirit of service that is sweeping across our Nation today, I ask that all Americans—every day, but especially during Older Americans Month—reach out to an older person in need, sharing time, talents, and attention with someone who has already shared so much with us. By putting our compassion in action to serve our older citizens, we can build a more promising future for all our people.

Older Americans deserve our respect and support for they have worked diligently in so many ways to enrich and preserve the way of life we all enjoy. Our senior citizens have woven the fabric of our Nation to exemplify the values and beliefs that have made our country great.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim May 1997 as Older Americans Month. I call upon Government officials, businesses, communities, volunteers, educators, and all the people of the United States to honor our older Americans and acknowledge the important contributions made by their caregivers, this month and throughout the year.

IN WITNESS WHEREOF, I have hereunto set my hand this first day of May, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first
WILLIAM J. CLINTON 6997 May 1, 1997 Loyalty Day, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6997 of May 1, 1997
Loyalty Day, 1997 By the President of the United States of America A Proclamation

Each year, Americans dedicate the first day of May to formally acknowledge our love for this great land and our loyalty to the principles of freedom and equality on which our Nation was founded. This love and loyalty cannot be mandated or legislated; rather, these traits spring freely from our hearts and minds.

111 STAT. 2901

Looking back across the centuries, we recognize that each generation of Americans has been called upon to express its love and loyalty in a unique way. Our founders, defying the forces of tyranny, solemnly pledged their lives and futures to defend the new Nation they had created, a Nation born of reverence for human rights and the principle of self-determination. Less than a century later, another generation of Americans spilled its blood to preserve the unity of our Nation and to ensure that America lived up to its ideals of freedom, justice, and equality.

The challenges of our own century have called for an extraordinary measure of devotion from millions of our citizens. Through two devastating world wars and the decades of the Cold War, Americans laid down their lives for love of country and to defend democracy, advance human rights, and oppose the specter of oppression.

Today we are blessed to be living in a time of unprecedented peace and possibility, when the ideals of democracy and human dignity so eloquently articulated by our founders have been widely embraced by nations in our own hemisphere and around the world. But we have fresh opportunities to prove our love and loyalty to America. The challenge for our generation is to realize the promise of our Nation: to be a strong and steady influence for peace and freedom across the globe; to be a powerful voice for human rights wherever they are silenced; to live up to America's promise of justice, equality, and opportunity by ensuring that all of our people have the tools and encouragement they need to meet their God-given potential.

The Congress, by Public Law 85–529, has designated May 1 of each year as “Loyalty Day.” Let us, on this day, remember the contributions of the many courageous Americans who have gone before us, and let us keep faith with them by reaffirming our love for and loyalty to this Nation they sustained with their service and sacrifice.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim May 1, 1997, as Loyalty Day. I urge all Americans to recall, on this day, the valor and selflessness of all those who made this Nation so worthy of our love and loyalty. I call upon Government officials to display the flag of the United States and to participate in patriotic activities in support of this national observance.

IN WITNESS WHEREOF, I have hereunto set my hand this first day of May, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6998 May 5, 1997 Asian/Pacific American Heritage Month, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6998 of May 5, 1997 111 STAT. 2902
Asian/Pacific American Heritage Month, 1997 By the President of the United States of America A Proclamation

Today, almost 10 million Americans can trace their roots to Asia and the Pacific Islands. This month provides a wonderful opportunity to recognize and celebrate all the ways in which Asian and Pacific Americans have enhanced our Nation and strengthened our communities.

North America was visited regularly by Asian and Pacific traders as early as the 16th century, and by the late 1800s, this continent was receiving large numbers of immigrants from China, Japan, Korea, the Philippines, and the Indian subcontinent. These settlers worked hard, turning wilderness into bountiful farmland in Hawaii, opening new industries in the West, and helping to build the first transcontinental railroad.

Along with a vast array of skills, Americans of Asian and Pacific Island ancestry brought their remarkable traditions of hard work and respect for family and education to their new country. Their belief in the American Dream of equality and opportunity enabled them to face the challenges of adversity and discrimination and achieve a record of distinguished service in all fields, from academia to government, from business to the military, and medicine to the arts. These people and their children managed to preserve the rich legacy of their homelands while also embracing the best values and traditions that define our Nation.

In recent years, newly arrived groups of Asian and Pacific peoples have continued to enrich our proud tradition of cultural diversity and endow our Nation with energy and vision. Today, as we prepare to enter the 21st century, we must continually strive to fulfill the ideals that originally attracted so many immigrants to our shores.

To honor the accomplishments of Asian and Pacific Americans and to recognize their many contributions to our Nation, the Congress, by Public Law 102–450, has designated the month of May as “Asian/Pacific American Heritage Month.”

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim May 1997 as Asian/Pacific American Heritage Month. I call upon the people of the United States to observe this occasion with appropriate programs, ceremonies, and activities.

IN WITNESS WHEREOF, I have hereunto set my hand this fifth day of May, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 6999 May 7, 1997 Mother’s Day, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 6999 of May 7, 1997 111 STAT. 2903
Mother’s Day, 1997 By the President of the United States of America A Proclamation

As we prepare to enter the 21st century, in the midst of a rapidly changing world, one thing remains constant—the unconditional love between a mother and her child. This love provides us with a cornerstone and sanctuary throughout our entire lives. Mothers nurture, challenge, and instill strong values in their children, find solutions, arbitrate disputes, organize activities, care and teach, influence and lead, give, share, and encourage. Their abiding moral principles shape our families, our communities, and our national life.

Today, mothers face many different challenges—from balancing the responsibilities of home and work, to raising families on their own— while contending with the often daunting challenges of modem society. They do this all while meeting the day-to-day responsibilities of class projects, car payments, and the flu season. And yet, they succeed, determined to protect what is so precious to them and to make brighter futures for themselves, their children, and their Nation.

Each year we welcome the opportunity to set aside a day to acknowledge all that our mothers—whether biological, adoptive, or foster—have given us. It is a time to reflect on all we have gained from their guidance, care, and sacrifice and a time to openly express our gratitude and love. The Congress, by a joint resolution approved May 8, 1914 (38 Stat. 770), has designated the second Sunday in May each year as “Mother’s Day” and requested the President to call for its appropriate observance.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim May 11, 1997, as Mother’s Day. Whether we are able to share this special day with our mothers or are blessed with memories of them, in our hearts they are with us always. I urge all Americans to express their love and respect for their mothers and to observe this day with appropriate ceremonies, activities, and programs.

IN WITNESS WHEREOF, I have hereunto set my hand this seventh day of May, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 7000 May 7, 1997 Peace Officers Memorial Day and Police Week, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7000 of May 7, 1997
Peace Officers Memorial Day and Police Week, 1997 By the President of the United States of America A Proclamation

Law enforcement officers are true heroes, quietly risking their lives every day to protect our public safety and private property. The rou-111 STAT. 2904tine, everyday nature of their courage makes it all the more extraordinary. Day and night, these brave men and women leave home, put on their badges, and report for duty, putting their lives on the line for the rest of us.

Today, an estimated 587,000 men and women are sworn police officers, working to enforce our Nation’s laws and maintain order in our society. As citizens we owe these officers respect and gratitude, and Police Week is a welcome time for us to join together and salute these officers for the selfless work they carry out so faithfully all year long.

Sadly, during Police Week we also pause, on Peace Officers Memorial Day, to remember our fallen officers. Last year, 117 Federal, State, and local officers were killed in the line of duty. Although this number dropped to the lowest level in over 30 years—and the number of police officers killed by firearms alone dropped to 55 from 71 the previous year—these statistics, compiled by the National Law Enforcement Officers Memorial Fund, remain a cause for great concern. The loss of any police officer is a tragedy, and as a Nation, we mourn and remember these men and women who made the ultimate sacrifice by giving their lives. While we can never repay the debt we owe to these fallen officers and their families, we can—and must—honor their memory by carrying on their crusade to make America a better and safer place.

By a joint resolution approved October 1, 1962 (76 Stat. 676), the Congress has authorized and requested the President to designate May 15 of each year as “Peace Officers Memorial Day” and the week in which it falls as “Police Week,” and, by Public Law 103–322 (36 U.S.C. 175), has directed that the flag be flown at half-staff on Peace Officers Memorial Day.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim May 15, 1997, as Peace Officers Memorial Day and May 11 through May 17, 1997, as Police Week. 1 call upon the people of the United States to observe these occasions with appropriate ceremonies, programs, and activities. I also request the Governors of the United States and of the Commonwealth of Puerto Rico, as well as the appropriate officials of all units of government, to direct that the flag be flown at half-staff on Peace Officers Memorial Day on all buildings, grounds, and naval vessels throughout the United States and all areas under its jurisdiction and control. I also invite all Americans to display the flag at half-staff from their homes on that day.

IN WITNESS WHEREOF, I have hereunto set my hand this seventh day of May, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 7001 May 8, 1997 Jewish Heritage Week, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7001 of May 8, 1997 111 STAT. 2905
Jewish Heritage Week, 1997 By the President of the United States of America A Proclamation

The American Jewish community, with its rich and diverse culture, has served as a continuous source of ethical and moral values for our great Nation since its founding. The principles of Jewish heritage—family, community, faith, and service—parallel the ideals that inspired our country’s founders and that anchor our modem democracy.

Members of the Jewish faith have long added to America’s cultural life a legacy of law and human compassion, a struggle for freedom and fairness, and a love of learning and the arts. Drawing from their proud heritage, Jewish citizens have made vital contributions to every sector of society, as scientists and soldiers, judges and teachers, artists, entrepreneurs, and philanthropists.

Jewish traditions lend special meaning to the spring season. The recent celebration of Passover commemorates the exodus of Jewish slaves from ancient Egypt. The observance of this religious and historical milestone also honors the character of the Jewish people, who, despite continual hardship, clung to their enduring faith in God and the promise of a brighter future. The annual spring commemorations of Passover, Holocaust Memorial Day, and Israel's Independence are occasions for deep reflection by American Jewry and demonstrate to all Americans the importance of remembrance, faith, freedom, and justice.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim May 11 through May 18, 1997, as Jewish Heritage Week. I urge all Americans to observe this week with appropriate programs and to pay tribute to American Jews for sharing their message of hope and perseverance with all of us.

IN WITNESS WHEREOF, I have hereunto set my hand this eighth day of May, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 7002 May 9, 1997 National Defense Transportation Day and National Transportation Week, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7002 of May 9, 1997
National Defense Transportation Day and National Transportation Week, 1997 By the President of the United States of America A Proclamation

The United States has the finest, safest transportation system in the world—superior highways and waterways, railroads, pipelines, and airports. This system unites a diverse Nation, provides economic oppor-111 STAT. 2906tunity, and enhances our quality of life by giving our citizens almost unrestricted mobility.

As we approach the 21st century, we must maintain the strength and reliability of this transportation system. The globalization of our economy demands more efficient shipping if we are to remain competitive. The growth in passenger traffic spurred by an expanding economy requires new and better ways of enabling people to travel safely and conveniently. In an unpredictable world, our transportation system must be able to quickly move military and other equipment, humanitarian supplies, and people to meet the demands of emergencies and natural disasters throughout the world.

All levels of government and industry are working together to ensure that our transportation system will continue to meet these challenges in the years to come. We must also continue to address the need for a cleaner environment and for sustainable communities, and we must ensure that transportation is available for people with special needs. This effort will require new technologies, advanced materials, improved operating practices and logistical systems, and other innovations.

We must also strive to educate our youth in technology and transportation issues. The Department of Transportation has launched the Garrett A. Morgan Technology and Transportation Futures Program to pursue this important goal through math, science, and technology literacy programs, private-public education partnerships, and other initiatives. An African American, Garrett Morgan invented the traffic signal and is recognized as the father of our safe transportation technology program. He served as a model of public service and as a catalyst to enhance transportation education at all levels.

This week, Americans honor the men and women who, like Garrett Morgan, have done and are doing so much to design, build, operate, and ensure the safety of our transportation system. We salute them for their contributions to our Nation and for helping to ensure that our transportation system remains the best in the world.

In recognition of the millions of Americans who work every day to meet our transportation needs, the Congress, by joint resolution approved May 16, 1957 (36 U.S.C. 160), has designated the third Friday in May of each year as “National Defense Transportation Day” and, by joint resolution approved May 14, 1962 (36 U.S.C. 166), declared that the week in which that Friday falls be designated “National Transportation Week.”

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim Friday, May 16, 1997, as National Defense Transportation Day and May 11 through May 17, 1997, as National Transportation Week. I urge all Americans to observe these occasions with appropriate ceremonies and activities, giving due recognition to the individuals and organizations that build, operate, safeguard, and maintain this country’s modern transportation system.

IN WITNESS WHEREOF, I have hereunto set my hand this ninth day of May, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 7003 May 14, 1997 National Safe Boating Week, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7003 of May 14, 1997 111 STAT. 2907
National Safe Boating Week, 1997 By the President of the United States of America A Proclamation

America’s scenic waterways—the beautiful lakes, magnificent rivers, and immense oceans at our borders—are a national treasure. Some 76 million Americans of all ages and abilities—more than one-fourth of our Nation’s population—take to these vast resources every year to enjoy the beauty of the outdoors, each in his or her own way. But boaters too often forget that, besides being relaxing and fun, boating can be dangerous.

The U.S. Coast Guard’s most recent annual statistics reveal 851 fatalities related to recreational boating, a 13 percent increase from the previous year. Tragically, 90 percent of those victims were not wearing a life jacket. Because falling overboard and capsizing are the two leading causes of all recreational boating fatalities, this safety device is essential to boating safety. Refraining from drinking alcohol is also essential to assure safe boating, as more than half of all boating accidents involve alcohol.

Safe-boating education, which is available through a wide variety of sources—the U.S. Coast Guard Auxiliary, U.S. Power Squadrons, State and local governments, and numerous private organizations—is another key to accident prevention. Ninety percent of all boating fatalities occur on boats whose operators had no formal boating safety instruction. By word and by example, we must inform and educate both current and future generations of boaters to become knowledgeable boat operators. Learn about safety equipment and the “rules of the road.” Then follow a few simple rules: wear a life jacket; never drink while boating; operate at safe speeds; and be alert for weather changes.

By making safety the first priority and emphasizing the necessity for all boaters, especially children, to wear life jackets, we can help to put tragic boating accidents behind us and enjoy more fully the beauty and excitement of the open water.

I commend the U.S. Coast Guard, Federal departments and agencies, States and local governments, and the many recreational boating organizations who are actively promoting saving lives on the water through the theme of this year’s campaign: “Life Jackets. They Float. You Don’t.”

In recognition of the importance of safe boating practices the year-round. the Congress, by joint resolution approved June 4, 1958 (36 U.S.C. 161), as amended, has authorized and requested the President to proclaim annually the seven-day period prior to the Memorial Day Weekend as “National Safe Boating Week.”

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim May 17 through May 23, 1997, as National Safe Boating Week. I encourage the Governors of the 50 States, the Commonwealth of Puerto Rico, and officials of other areas subject to the jurisdiction of the United States to join in observing this occasion and to urge all Americans to practice safe boating habits not only during this week but also throughout the year.

111 STAT. 2908

IN WITNESS WHEREOF, I have hereunto set my hand this fourteenth day of May, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 7004 May 19, 1997 World Trade Week, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7004 of May 19, 1997
World Trade Week, 1997 By the President of the United States of America A Proclamation

Two statistics sum up both the challenge and the promise of today’s dynamic global economy: 95 percent of the world’s consumers live outside the United States, and U.S. exports generated more than $830 billion in sales in 1996. The theme of this year’s World Trade Week, “Make Locally, Sell Globally,” exhorts American businesses to take advantage of the enormous commercial potential of the international marketplace, and we are poised to do so.

Over the past 4 years, trade has spurred more than a quarter of our overall domestic economic growth. During this period, the United States under the leadership of the Office of the U.S. Trade Representative signed more than 200 new trade agreements and is once again the world’s leading exporter. In recent months, we have concluded historic agreements in the World Trade Organization that opened up the world telecommunications services market to U.S. firms. We also have negotiated a pact that will eliminate tariffs on information technology products by the year 2000. Together, these agreements offer American business better access to markets representing more than $1 trillion in goods and services and are models for further market-opening initiatives.

The North America Free Trade Agreement (NAFTA) has not only increased trade with our member partners to a level of $425 billion annually, but also has provided greater stability to the global economy. We are committed to building on this success by achieving a Free Trade Area of the Americas, and we look toward a comprehensive trade agreement with Chile as the next concrete step in this direction.

Selling globally also requires vigorous trade enforcement efforts, such as those we initiated recently by improving the protection of intellectual property rights in China and some 20 other countries around the world. Our ongoing efforts to eliminate trade barriers in Asia have already paid dividends—for example, U.S. exports to Japan have grown by more than 40 percent since 1993. We will also continue to strictly enforce existing trade laws to ensure that imported goods in U.S. markets do not enjoy an unfair advantage over those produced by U.S. companies and workers.

We are committed to helping all U.S. businesses continue to succeed—not only by opening markets, but also by assisting U.S. exporters. My Administration, through the efforts of the Trade Promotion Coordinating Committee, has developed a National Export Strategy to help small- and medium-size companies sell globally to realize their export poten-111 STAT. 2909tial. Our nationwide network of U.S. Export Assistance Centers combines under one roof the services of the Department of Commerce, the Small Business Administration, the U.S. Export-Import Bank, and other agencies to improve business access to trade information and financing. Over the past 4 years, this network has more than doubled the amount of export sales it facilitates. Our finance agencies, the U.S. Export-Import Bank, the Overseas Private Investment Corporation, and the Trade and Development Agency, also help American businesses compete on a level playing field in this increasingly competitive world economy.

We can be proud of this record of achievement, but we must build on it. Fair trade and open markets create stable economies in which democracy can take root and flourish. The United States alone has the legacy, the resources, and the responsibility to lead the world in this endeavor, and we must continue to do so.

As we observe World Trade Week, 1997, I am confident that, working together, we can sustain America’s leadership in the global economy, generate millions of new jobs, and improve the quality of life for all our people.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim May 18 through May 24, 1997, as World Trade Week. I invite the people of the United States to observe this week with ceremonies, activities, and programs that celebrate the potential of international trade.

IN WITNESS WHEREOF, I have hereunto set my hand this nineteenth day of May, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 7005 May 21, 1997 National Maritime Day, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7005 of May 21, 1997
National Maritime Day, 1997 By the President of the United States of America A Proclamation

Throughout America’s history—from the Revolutionary War to today’s global challenges—our United States Merchant Marine has fulfilled its mission with patriotism and efficiency, transporting our Nation’s cargoes in times of both peace and conflict. Our Merchant Marine has shown its mettle time and again during major United States military engagements, proving to be a crucial component in support of our Armed Forces’ efforts to protect our national interests and defend our freedom. Today, we salute these skilled civilian seafarers, who continue to distinguish their profession and demonstrate their commitment to America’s security through their unwavering support of our troops abroad in both peacekeeping and humanitarian operations.

History has taught us how important a nation's flag presence is on the high seas. Heeding the lessons of the past, the Congress and I re-111 STAT. 2910affirmed our pledge for a strong U.S.-flag fleet when I signed into law the Maritime Security Act of 1996. This legislation sets the course for America’s Merchant Marine into the 21st century, sustaining a strong sealift capability and bolstering national security. The Act will strengthen American maritime and allied industries, while energizing our efforts to further stimulate the economy through trade and commerce.

As we look to the challenges of the future, we recognize the continuing importance of our U.S. domestic maritime fleet to the maintenance of our Nation's commercial and defense maritime interests. I commend the merchant mariners whose unstinting service has helped maintain both our domestic and our international U.S. fleets.

In recognition of the importance of the U.S. Merchant Marine, the Congress, by a resolution approved May 20, 1933, has designated May 22 of each year as “National Maritime Day” and has authorized and requested the President to issue annually a proclamation calling for its observance.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim May 22, 1997, as National Maritime Day. I urge all Americans to observe this day with appropriate programs, ceremonies, and activities and by displaying the flag of the United States at their homes and in their communities. I also request that all ships sailing under the American flag dress ship on that day.

IN WITNESS WHEREOF, I have hereunto set my hand this twenty-first day of May, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 7006 May 22, 1997 Prayer for Peace, Memorial Day, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7006 of May 22, 1997
Prayer for Peace, Memorial Day, 1997 By the President of the United States of America A Proclamation

The observance of Memorial Day is one of America’s noblest traditions. At its core lies the most basic of the beliefs on which our Nation was founded: that freedom is so precious it is worth the price of our lives to preserve it.

Throughout our history, we have been blessed by the courage and commitment of Americans who were willing to pay that price, and more than 1.3 million of them have died for our Nation. From Lexington and Concord to Iwo Jima and the Persian Gulf, on fields of battle across America and around the world, our men and women in uniform have risked—and lost—their lives to protect America’s interests, to advance the ideals of democracy, and to defend the liberty we hold so dear.

This spirit of selfless sacrifice is an unbroken thread woven through our history. Wherever they came from, whenever they served, our fallen heroes knew they were fighting to preserve our freedom. On Memo-111 STAT. 2911rial Day we remember them, and we acknowledge that we stand as a great, proud, and free Nation because of their devotion.

But this is not the only day on which we honor their service and sacrifice. Whenever we lend our hearts and hands and voices to the work of peace in the world, whenever we show respect for the flag, cast a vote in an election, or exercise our freedoms of speech, assembly, and worship, we honor our fellow Americans who guaranteed those freedoms with their lives. In respect and recognition of these courageous men and women, the Congress, by joint resolution approved on May 11, 1950 (64 Stat. 158), requested that the President issue a proclamation calling upon the people of the United States to observe each Memorial Day as a day of prayer for permanent peace and designating a period on that day when the American people might unite in prayer.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim Memorial Day, May 26, 1997, as a day of prayer for permanent peace, and I designate the hour beginning in each locality at 11:00 a.m. of that day as a time to join in prayer. I urge the press, radio, television, and all other information media to take part in this observance.

I also request the Governors of the United States and the Commonwealth of Puerto Rico, and the appropriate officials of all units of government, to direct that the flag be flown at half-staff during this Memorial Day on all buildings, grounds, and naval vessels throughout the United States and in all areas under its jurisdiction and control, and I request the people of the United States to display the flag at half-staff from their homes for the customary forenoon period.

IN WITNESS WHEREOF, I have hereunto set my hand this twenty-second day of May, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 7007 May 30, 1997 To Modify Duty-Free Treatment Under the Generalized System of Preferences Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7007 of May 30, 1997
To Modify Duty-Free Treatment Under the Generalized System of Preferences By the President of the United States of America A Proclamation

1. Pursuant to sections 501. 503(a)(1)(A), and 503(c)(1) of title V of the Trade Act of 1974 (“the 1974 Act”), 19 U.S.C. 2461–2466, as amended, the President may designate or withdraw designation of specified articles provided for in the Harmonized Tariff Schedule of the United States (HTS) as eligible for preferential tariff treatment under the Generalized System of Preferences (GSP) when imported from designated beneficiary developing countries.

2. Pursuant to sections 501 and 502 of the 1974 Act. the President is authorized to designate countries as beneficiary developing countries for purposes of the GSP.

111 STAT. 2912

3. Pursuant to section 503(c)(2)(A) of the 1974 Act, some beneficiary developing countries are subject to the competitive need limitation on the preferential treatment afforded under the GSP to eligible products.

4. Pursuant to section 503(c)(2)(C) of the 1974 Act, a country that is no longer treated as a beneficiary developing country with respect to an eligible article may be redesignated as a beneficiary developing country with respect to such article if imports of such article from such country did not exceed the competitive need limitation in section 503(c)(2)(A) during the preceding calendar year.

5. Pursuant to section 503(c)(2)(F) of the 1974 Act, the President may disregard the competitive need limitation provided in section 503(c)(2)(A)(i)(II) with respect to any eligible article if the aggregate appraised value of the imports of such article into the United States during the preceding calendar year does not exceed the applicable amount set forth in section 503(c)(2)(F)(ii).

6. Further, pursuant to subsection 503(d) of the 1974 Act, the President may waive the application of the competitive need limitation in section 503(c)(2)(A) with respect to any eligible article of any beneficiary developing country.

7. Pursuant to section 503(a)(1)(B) of the 1974 Act, the President may designate articles as eligible articles only for countries designated as least-developed beneficiary developing countries under section 502(a)(2), if the President determines that such articles are not import-sensitive in the context of imports from such least-developed beneficiary developing countries.

8. Pursuant to sections 501, 503(a)(1)(A), and 503(c)(1) of the 1974 Act, I have determined, after taking into account information and advice received from the United States International Trade Commission under section 503(a)(1)(A), to designate additional articles as eligible articles for purposes of the GSP. In order to do so, it is necessary to subdivide and amend the nomenclature of existing provisions of the HTS.

9. Pursuant to sections 501 and 502 of the 1974 Act, and having due regard for the eligibility criteria set forth therein, I have determined that it is appropriate to designate Cambodia as a beneficiary developing country and a least-developed beneficiary developing country for purposes of the GSP.

10. Pursuant to sections 503(c)(2)(A) of the 1974 Act, I have determined that certain beneficiary countries should no longer receive preferential tariff treatment under the GSP with respect to certain eligible articles imported in quantities that exceed the applicable competitive need limitation.

11. Pursuant to section 503(c)(2)(C) of the 1974 Act, I have determined that certain countries should be redesignated as beneficiary developing countries with respect to certain eligible articles that had been imported previously in quantities that exceeded the competitive need limitation of section 503(c)(2)(A).

12. Pursuant to section 503(c)(2)(F) of the 1974 Act. I have determined that the competitive need limitation provided in section 503(c)(2)(A)(i)(II) should be waived with respect to certain eligible articles.

111 STAT. 2913

13. Pursuant to section 503(d) of the 1974 Act, I have determined that the competitive need limitation of section 503(c)(2)(A) should be waived with respect to certain eligible articles from certain beneficiary developing countries. I have received the advice of the United States International Trade Commission on whether any industries in the United States are likely to be adversely affected by such waivers and I have determined, based on that advice and on the considerations described in sections 501 and 502(c), that such waivers are in the national economic interest of the United States. In order to grant one of those waivers, it is necessary to subdivide and amend the nomenclature of existing provisions of the HTS.

14. Pursuant to section 503(a)(1)(B) of the 1974 Act, I have determined to designate certain articles as eligible articles under the GSP only for least-developed beneficiary developing countries.

15. Section 604 of the 1974 Act, 19 U.S.C. 2483, as amended, authorizes the President to embody in the HTS the substance of the relevant provisions of that Act, and of other acts affecting import treatment, and actions thereunder, including the removal, modification, continuance, or imposition of any rate of duty or other import restriction.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, acting under the authority vested in me by the Constitution and the laws of the United States of America, including but not limited to title V and section 604 of the 1974 Act, do proclaim that:

(1) In order to provide that Cambodia is designated as a beneficiary developing country and a least-developed beneficiary developing country for purposes of the GSP, that one or more countries that have not been treated as beneficiary developing countries with respect to one or more eligible articles should be redesignated as beneficiary developing countries with respect to such article or articles for purposes of the GSP, and that one or more countries should no longer be treated as beneficiary developing countries with respect to an eligible article for purposes of the GSP, general note 4 to the HTS is modified as provided in section A of Annex I to this proclamation.

(2) In order to designate certain articles as eligible articles for purposes of the GSP when imported from beneficiary developing countries, the HTS is modified as provided in section B of Annex I to this proclamation.

(3) (a) In order to designate an article as an eligible article for purposes of the GSP when imported from any beneficiary developing country other than India, the Rates of Duty 1-Special subcolumn for the HTS subheading enumerated in section C(1)(a) of Annex I to this proclamation is modified as provided in such Annex section.

(b) In order to designate an article as an eligible article for purposes of the GSP when imported from any beneficiary developing country, the Rates of Duty 1-Special subcolumn for the HTS subheading enumerated in section C(l)(b) of Annex 1 to this proclamation is modified as provided in such Annex section.

(c) In order to restore preferential tariff treatment under the GSP to a country that has been excluded from the benefits of the GSP for an eligible article, the Rates of Duty 1—Special subcolumn for each of the HTS subheadings enumerated in section C(l)(c) of Annex I to this proclamation is modified as provided in such Annex section.

111 STAT. 2914

(d) In order to provide that one or more countries should no longer be treated as a beneficiary developing country with respect to an eligible article for purposes of the GSP, the Rates of Duty 1-Special subcolumn for each of the HTS provisions enumerated in section C(2) of Annex I to this proclamation is modified as provided in such Annex section.

(4) In order to designate certain articles as eligible articles for purposes of the GSP only when imported from designated least-developed beneficiary developing countries, the HTS is modified as provided in Annex II to this proclamation.

(5) A waiver of the application of section 503(c)(2)(A) of the 1974 Act shall apply to the eligible articles in the HTS subheadings and to the beneficiary developing countries set forth in Annex III to this proclamation.

(6) In order to provide for the continuation of previously proclaimed staged reductions in the Rates of Duty 1-General subcolumn, for goods that fall in the HTS subheadings modified by section B(1) of Annex I to this proclamation and that are entered, or withdrawn from warehouse for consumption, on or after the dates specified in Annex IV to this proclamation, the rate of duty in the HTS set forth in such subcolumn for each of the HTS subheadings enumerated in Annex IV to this proclamation is deleted and the rate of duty provided in such Annex is inserted in lieu thereof.

(7) Any provisions of previous proclamations and Executive orders that are inconsistent with the actions taken in this proclamation are superseded to the extent of such inconsistency.

(8) (a) The modifications made by Annexes I, II, and IV to this proclamation shall be effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after the dates set forth in such Annexes.

(b) The action taken in Annex III to this proclamation shall be effective on May 31, 1997.

IN WITNESS WHEREOF, I have hereunto set my hand this thirtieth day of May, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 111 STAT. 2915 Annex I Modifications to the Harmonized Tariff Schedule of the United States ("HTS")
Section A. General note 4 to Harmonized Tariff Schedule of the United states (“HTS”) is modified as provided in this section. (1). Effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after July 31, 1997, (a). general note 4(a) to the HTS is modified by inserting in the list of independent countries, in alphabetical order, “Cambodia”; and (b). general note 4(b) to the HTS is modified by inserting in the list of beneficiary developing countries, in alphabetical order, “Cambodia”. (2). Effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after May 31, 1997, general note 4(d) to the HTS is modified by: (a). deleting the following subheading and the country set out opposite such subheadings:
1604.15.00 Chile 8469.12.00 Indonesia
2208.60.50 Russia 8471.49.26 Thailand
2909.19.10 India 8471.60.35 Thailand
6905.10.00 Venezuela 8517.19.40 Thailand
7413.00.10 Peru 8517.19.80 Thailand
7604.10.50 Russia 8527.21.10 Brazil
7614.90.20 Venezuela 8527.90.90 Philippines
8401.10.00 Russia
(b). by deleting the country set out opposite the following subheading:
1604.16.10 Morocco 4107.90.60 South Africa
2933.29.45 Slovenia 4203.21.20 Indonesia
2933.39.25 Brazil 7605.11.00 Russia
2933.71.00 Russia
(c). by adding, in numerical sequence, the following provisions and countries set out opposite them:
2901.29.50 India
2909.19.14 India
2909.19.18 India
(3). Effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after July 1, 1997, general note 4(d) to the HTS is modified by: (a). by adding, in numerical sequence, the following provisions and countries set out opposite them:
0708.10.20 Guatemala 4104.31.40 Argentina
0708.90.15 India 4412.92.50 Indonesia
0710.80.93 Guatemala 4412.99.55 Colombia
0711.40.00 India 4602.10.23 Indonesia
0714.10.10 Costa Rica 4823.90.20 Philippines
0714.10.20 Costa Rica 5702.49.15 India
0714.20.20 Dominican Republic 5904.91.00 India
0311.90.10 Costa Rica 7109.00.00 Peru
0811.90.50 Costa Rica 7113.11.50 Thailand
1007.00.00 Argentina 7113.19.21 Peru
1106.30.20 Ecuador 7113.20.21 India
1301.90.40 Indonesia 7614.90.50 Venezuela
1403.90.40 India 7905.00.00 Peru
1605.90.55 Indonesia 3108.90.60 Russia
1702.60.22 Argentina 8112.30.60 Russia
1702.90.35 Belize 8211.92.60 Pakistan
1702.90.40 Dominican Republic 8412.10.00 Russia
1703.10.30 Dominican Republic 3413.30.10 Brazil
180b.32.55 Colombia 8414.30.80 Brazil
2004.10.40 Colombia 8471.60.35 Indonesia
2003.30.10 Dominican Republic 8471.70.50 Philippines
2008.99.13 Costa Rica 8516.50.00 Thailand
2008.99.23 Dominican Republic 8517.80.10 Indonesia
2106.90.12 Dominican Republic 8528.12.04 Indonesia
2202.90.36 Dominican Republic 8531.20.00 Thailand
2516.22.00 India 8708.39.50 Brazil
2608,00.00 Peru 9006.62.00 Thailand
3920.59.80 Dominican Republic 9401.69.40 Indonesia
4015.11.00 Thailand
111 STAT. 2916 (b). by adding, in alphabetical order, the country or countries set out opposite the following provisions:
0713.90.10 Peru 2921.42.23 Guatemala
1701.11.05 India 3824.60.00 Indonesia
1701.11.10 Dominican Republic 4104.39.50 India
2603.00.00 Chile 4412.22.40 Colombia
2904.90.15 Brazil 7113.19.50 Dominican Republic
2909.50.40 Indonesia 7403.11.00 Peru
2912.13.00 Colombia 7403.12.00 Peru
2916.31.15 Estonia 9403.60.80 Indonesia
Section B. The Harmonized Tariff Schedule of the United States ("HTS") is modified, as provided in this section, effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after May 31, 1997.

The following provisions supersedes matter now in the HTS. Bracketed matter is included to assist in the understanding of proclaimed modifications. The subheadings and superior text are set forth in columnar format, and material in such columns is inserted in the columns of the HTS designated “Heading/Subheading”, “Article Description”, “Rates of Duty 1 General”, “Rates of Duty 1 Special”, and “Rates of Duty 2”, respectively.

(1). Subheading 0802.90.90 is superseded by:
[Other nuts, fresh or dried,:]
 [Other:]
  [Other:]
   "Shelled:
0802.90.94     Kola nuts 8¢/kg Free (A, CA, E, IL, J, MX) 11¢.kg
0802.90.98     Other 8¢/kg Free (CA, E, IL, J, MX) 11¢.kg"
(2). Subheading 2909.19.10 is superseded by:
[Ethers, ether-alcohols, ether-phenols,:]
 (Acyclic ethers and their halogenated,:]
  [Other:]
   "Ethers of monohydric alcohols:
2909.19.14     Methyl tertiary-butyl ether (MTBE) 5.5% Free (A*, CA, E, IL, J, MX) 37%
2909.19.18     Other 5.5% Free (A*, CA, E, IL, J, K, MX) 37%"
(3). The article description of heading 9901.00.52 is modified by deleting “2909.19.10” and inserting “2909.19.18” in lieu thereof.
Section C. Modifications to the Harmonized Tariff Schedule of the United States ("HTS") of an article's preferential tariff treatment under the Generalized System of Preferences ("GSP"). (1). Effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after May 31, 1997, (a). For subheading 2901.29.50, the Rates of Duty 1-Special subcolumn is modified by inserting in the parentheses following the “Free” rate the symbol “A*,” in alphabetical order; (b). For subheading 8607.19.03, the Rates of Duty 1-Special subcolumn is modified by inserting in the parentheses following the “Free” rate the symbol “A,” in alphabetical order; and (c). for the following subheadings, the Rates of Duty 1-Special subcolumn is modified by deleting the symbol “A*” and inserting an “A” in lieu thereof.
1604.15.00 7413.00.10 8401.10.00 8471.60.35 8527.21.10
2208.60.50 7604.10.50 8469.12.00 8517.19.40 8527.90.90
6905.10.00 7614.90.20 8471.49.26 8517.19.80
111 STAT. 2917 (2). Effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after July 1, 1997, for the following HTS provisions, the Rates of Duty 1-Special subcolumn is modified by deleting the symbol “A" and inserting an “A*" in lieu thereof:
0708.10.20 1403.90.40 2202.90.36 7109.00.00 8471.60.35
0708.90.15 1605.90.55 2516.22.00 7113.11.50 8471.70.50
0710.80.93 1702.60.22 2608.00.00 7113.19.21 8516.50.00
0711.40.00 1702.90.35 3920.59.80 7113.20.21 8517.80.10
0714.10.10 1702.90.40 4015.11.00 7614.90.50 8528.12.04
0714.10.20 1703.10.30 4104.31.40 7905.00.00 8531.20.00
0714.20.20 1806.32.55 4412.92.50 8108.90.60 8708.39.50
0811.90.10 2004.10.40 4412.99.55 8112.30.60 9006.62.00
0811.90.50 2008.30.10 4602.10.23 8211.92.60 9401.69.40
1007.00.00 2008.99.13 4823.90.20 8412.10.00
1106.30.20 2008.99.23 5702.49.15 8413.30.10
1301.90.40 2106.90.12 5904.91.00 8414.30.80
Annex II Modifications to the Generalized System of Preferences ("GSP") in the Harmonized Tariff Schedule of the United States ("HTS") for Designated Least-Developed Beneficiary Developing Countries

Effective with respect to articles entered or withdrawn from warehouse for consumption, on or after May 31, 1997.

(a). General note 3 (c) to the Harmonized Tariff Schedule of the United States ("HTS") is modified by deleting “A or A*” and inserting “A, A* or A+” in lieu thereof. (b). Subdivision (b) of general note 4 to the HTS is redesignated as subdivision (b) (i) and the following new subdivision (ii) is inserted in numerical sequence: “(ii) Articles provided for in a provision for which a rate of duty “free" appears in the “Special" subcolumn followed by the symbol “A*" in parentheses are those designated by the President to be eligible articles for purposes of the GSP pursuant to section 503(a)(1)(B) of the Trade Act of 1974, as amended. The symbol “A+" indicates that all least-developed beneficiary developing countries are eligible for preferential treatment with respect to all articles provided for in the designated provisions. Whenever an eligible article which is the growth, product, or manufacture of a designated least-developed beneficiary developing country listed in subdivision (b)(i) of this note is imported into the customs territory of the United States directly from such country, such article shall be eligible for duty-free treatment as set forth in the “Special" subcolumn; provided that, in accordance with regulations promulgated by the Secretary of the Treasury the sum of (1) the cost or value of the materials produced in the least-developed beneficiary developing country or 2 or more countries which are members of the same association of countries which is treated as one country under section 502(a)(3) of the Trade Act of 1974, plus (2) the direct costs of processing operations performed in such least-developed beneficiary developing country or such member countries, is not less than 35 percent of the appraised value of such article at the time of its entry into the customs territory of the United States. No article or material of a least-developed beneficiary developing country shall be eligible for such treatment by virtue of having merely undergone simple that does not materially alter the characteristics of the article." (c). For the following subheadings, the rates of Duty 1-Special subcolumn is modified by inserting, in alphabetical order, the symbol “A+” in the parentheses following the “Free” rate of duty in such subcolumn.
0101.20.20 0201.30.50 0204.42.40 0305.41.00 0402.91.30
0101.20.40 0202.10.05 0204.43.20 0305.49.20 0402.99.03
0102.90.40 0202.10.10 0204.43.40 0305.61.20 0402.99.06
0104.20.00 0202.20.02 0207.11.00 0305.69.20 0402.99.10
0105.11.00 0202.20.04 0207.12.00 0305.69.40 0402.99.30
0105.12.00 0202.20.06 0207.13.00 0401.10.00 0402.99.68
0105.19.00 0202.20.10 0207.14.00 0401.20.20 0402.99.70
0105.92.00 0202.20.30 0207.24.00 0401.30.02 0403.10.05
0105.93.00 0202.20.50 0207.25.20 0401.30.05 0403.10.10
0105.99.00 0202.30.04 0207.25.40 0401.30.42 0403.10.90
0106.00.30 0202.30.06 0207.26.00 0401.30.50 0403.90.02
0201.10.05 0202.30.30 0207.27.00 0402.10.05 0403.90.04
0201.10.10 0202.30.50 0207.32.00 0402.10.10 0403.90.20
0201.20.02 0203.12.10 0207.34.00 0402.21.02 0403.90.37
0201.20.04 0203.19.20 0207.35.00 0402.21.05 0403.90.41
0201.20.06 0204.10.00 0207.36.00 0402.21.27 0403.90.47
0201.20.10 0204.21.00 0208.10.00 0402.21.30 0403.90.51
0201.20.30 0204.22.20 0208.90.40 0402.21.73 0403.90.57
0201.20.50 0204.22.40 0210.11.00 0402.21.75 0403.90.61
0201.30.02 0204.23.20 0210.19.00 0402.29.05 0403.90.72
0201.30.04 0204.23.40 0304.10.10 0402.29.10 0403.90.74
0201.30.06 0204.30.00 0304.20.30 0402.91.03 0403.90.85
0201.30.10 0204.41.00 0305.30.20 0402.91.06 0403.90.87
0201.30.30 0204.42.20 0305.30.40 0402.91.10 0403.90.90
111 STAT. 2918
0404.10.08 0406.90.14 0804.10.20 1212.30.00 1901.10.45
0404.10.11 0406.90.16 0804.10.40 1212.91.00 1901.10.55
0404.10.20 0406.90.20 0804.10.60 1214.10.00 1901.10.60
0404.10.48 0406.90.25 0804.10.80 1302.13.00 1901.10.80
0404.10.50 0406.90.28 0804.20.40 1302.39.00 1901.10.95
0404.90.28 0406.90.31 0804.20.80 1401.90.20 1901.90.10
0404.90.30 0406.90.33 0804.30.20 1402.90.10 1901.90.20
0404.90.70 0406.90.34 0804.30.40 1403.10.00 1901.90.32
0405.10.05 0406.90.36 0804.30.60 1501.00.00 1901.90.33
0405.10.10 0406.90.38 0804.40.00 1502.00.00 1901.90.34
0405.20.10 0406.90.39 0805.30.20 1503.00.00 1901.90.38
0405.20.20 0406.90.41 0806.10.20 1504.10.40 1901.90.42
0405.20.40 0406.90.43 0806.10.60 1507.10.00 1901.90.44
0405.20.50 0406.90.44 0806.20.10 1507.90.40 1901.90.46
0405.20.60 0406.90.46 0806.20.20 1508.10.00 1901.90.48
0405.90.05 0406.90.49 0806.20.90 1508.90.00 1901.90.56
0405.90.10 0406.90.51 0807.11.40 1512.11.00 1901.90.70
0406.10.12 0406.90.52 0807.19.10 1512.19.00 1903.00.40
0406.10.14 0406.90.59 0807.19.80 1512.21.00 1904.20.10
0406.10.24 0406.90.61 0808.20.40 1512.29.00 1904.20.90
0406.10.34 0406.90.63 0809.10.00 1514.10.90 2001.90.20
0406.10.44 0406.90.66 0809.30.20 1514.90.50 2001.90.35
0406.10.54 0406.90.72 0809.40.40 1514.90.90 2001.90.60
0406.10.64 0406.90.76 0810.20.10 1515.11.00 2002.10.00
0406.10.74 0406.90.82 0811.90.22 1515.19.00 2002.90.00
0406.10.84 0406.90.86 0811.90.40 1515.21.00 2003.10.00
0406.10.95 0406.90.90 0811.90.80 1515.29.00 2004.10.80
0406.20.10 0406.90.93 0812.10.00 1516.20.10 2004.90.90
0406.20.22 0406.90.95 0812.20.00 1516.20.90 2005.51.20
0406.20.24 0406.90.99 0812.90.10 1517.10.00 2005.60.00
0406.20.29 0408.11.00 0812.90.20 1517.90.45 2005.70.50
0406.20.31 0408.19.00 0812.90.30 1517.90.50 2005.70.60
0406.20.34 0408.91.00 0812.90.40 1517.90.90 2005.70.70
0406.20.36 0408.99.00 0812.90.90 1518.00.20 2005.70.91
0406.20.43 0409.00.00 0813.20.10 1522.00.00 2005.70.97
0406.20.44 0509.00.00 0813.20.20 1602.10.00 2005.90.30
0406.20.49 0601.10.30 0813.40.15 1602.20.20 2005.90.50
0406.20.51 0601.10.85 0813.40.30 1602.41.90 2005.90.80
0406.20.54 0601.20.10 0813.40.40 1602.42.40 2006.00.20
0406.20.55 0602.90.50 0813.40.90 1602.50.60 2006.00.40
0406.20.56 0701.10.00 0813.50.00 1603.00.10 2006.00.50
0406.20.57 0701.90.50 0814.00.80 1604.11.20 2006.00.60
0406.20.61 0703.10.40 0901.90.20 1604.11.40 2007.10.00
0406.20.65 0703.90.00 0904.20.40 1604.12.20 2007.91.10
0406.20.69 0704.90.40 0910.40.40 1604.12.40 2007.99.15
0406.20.73 0706.10.05 1001.10.00 1604.13.10 2007.99.35
0406.20.77 0706.10.20 1001.90.10 1604.13.20 2007.99.55
0406.20.81 0706.90.40 1001.90.20 1604.13.30 2007.99.60
0406.20.85 0708.20.90 1003.00.20 1604.14.10 2007.99.65
0406.20.89 0708.90.40 1003.00.40 1604.14.20 2007.99.70
0406.20.95 0709.20.90 1006.10.00 1604.14.30 2008.11.02
0406.30.12 0709.51.00 1006.20.20 1604.14.40 2008.11.05
0406.30.14 0709.70.00 1006.20.40 1604.14.70 2008.11.22
0406.30.22 0709.90.30 1006.30.90 1604.14.80 2008.11.25
0406.30.24 0709.90.35 1006.40.00 1604.19.10 2008.11.42
0406.30.32 0709.90.90 1008.20.00 1604.19.40 2008.11.45
0406.30.34 0710.10.00 1008.90.00 1604.19.50 2008.19.20
0406.30.42 0710.22.37 1101.00.00 1604.20.15 2008.19.40
0406.30.44 0710.22.40 1102.10.00 1604.20.25 2008.19.50
0406.30.49 0710.29.40 1103.11.00 1604.20.30 2008.19.85
0406.30.51 0710.30.00 1103.19.00 1604.20.40 2008.20.00
0406.30.55 0710.40.00 1104.11.00 1604.20.50 2008.30.20
0406.30.56 0710.80.20 1104.19.00 1604.20.60 2008.30.30
0406.30.57 0710.80.45 1104.21.00 1604.30.30 2008.30.35
0406.30.61 0710.80.60 1105.20.00 1605.90.06 2008.30.40
0406.30.65 0710.80.85 1107.10.00 1605.90.50 2008.30.46
0406.30.69 0710.80.97 1107.20.00 1702.11.00 2008.30.65
0406.30.73 0710.90.90 1108.13.00 1702.19.00 2008.30.70
0406.30.77 0711.20.38 1202.10.05 1702.50.00 2008.30.80
0406.30.81 0711.20.40 1202.10.40 1704.90.10 2008.30.85
0406.30.85 0711.90.40 1202.20.05 1704.90.52 2008.40.00
0406.30.89 0712.30.20 1202.20.40 1704.90.54 2008.50.40
0406.30.95 0712.90.20 1204.00.00 1704.90.74 2008.60.00
0406.40.20 0712.90.75 1205.00.00 1704.90.90 2008.70.00
0406.40.40 0714.90.40 1207.20.00 1806.20.79 2008.80.00
0406.40.51 0802.11.00 1208.10.00 1806.20.81 2008.92.10
0406.40.52 0802.12.00 1208.90.00 1806.20.85 2008.92.90
0406.40.54 0802.21.00 1209.22.20 1806.20.95 2008.99.05
0406.40.58 0802.22.00 1209.24.00 1806.20.99 2008.99.10
0406.90.05 0802.32.00 1209.25.00 1901.10.05 2008.99.18
0406.90.06 0802.90.10 1209.91.10 1901.10.15 2008.99.25
0406.90.08 0802.90.90 1209.91.50 1901.10.35 2008.99.29
111 STAT. 2919
2008.99.42 2402.10.60 2904.90.20 2917.39.70 2922.50.25
2008.99.60 2402.20.80 2904.90.30 2918.17.50 2922.50.35
2009.40.20 2402.90.00 2904.90.40 2918.19.10 2922.50.40
2009.40.40 2403.10.20 2904.90.47 2918.19.20 2924.10.80
2009.60.00 2403.10.30 2905.17.00 2918.19.30 2924.21.20
2009.80.40 2403.10.60 2906.12.00 2918.19.90 2924.21.45
2009.90.40 2403.91.43 2906.21.00 2918.23.30 2924.22.00
2101.30.00 2403.91.45 2906.29.60 2918.23.50 2924.29.05
2103.20.40 2403.99.20 2907.13.00 2918.29.04 2924.29.20
2105.00.05 2403.99.30 2907.15.60 2918.29.20 2924.29.31
2105.00.10 2403.99.60 2907.19.10 2918.29.65 2924.29.70
2105.00.25 2507.00.00 2907.19.20 2918.29.75 2924.29.75
2105.00.30 2508.10.00 2907.19.80 2918.30.10 2925.19.10
2105.00.50 2508.20.00 2907.21.00 2918.30.25 2925.19.40
2106.90.22 2508.30.00 2907.22.50 2918.30.30 2925.20.10
2106.90.24 2508.40.00 2907.29.90 2918.90.05 2925.20.20
2106.90.28 2509.00.20 2907.30.00 2918.90.43 2925.20.60
2106.90.32 2511.20.00 2908.10.10 2918.90.47 2926.90.05
2106.90.34 2519.90.20 2908.10.25 2919.00.30 2926.90.12
2106.90.38 2525.20.00 2908.10.35 2920.90.20 2926.90.44
2106.90.48 2613.10.00 2908.10.60 2921.22.10 2926.90.47
2106.90.62 2613.90.00 2908.20.04 2921.30.10 2927.00.06
2106.90.64 2616.10.00 2908.20.20 2921.30.30 2927.00.40
2106.90.78 2616.90.00 2908.20.60 2921.41.10 2927.00.50
2106.90.83 2620.11.00 2908.90.08 2921.41.20 2928.00.25
2106.90.85 2709.00.10 2908.90.28 2921.42.10 2929.10.10
2106.90.95 2709.00.20 2908.90.40 2921.42.18 2929.10.20
2202.90.10 2710.00.05 2908.90.50 2921.42.22 2929.10.35
2202.90.22 2710.00.10 2909.30.05 2921.42.65 2929.10.55
2202.90.24 2710.00.15 2909.30.07 2921.42.90 2929.10.80
2202.90.30 2710.00.18 2909.30.09 2921.43.08 2929.90.15
2202.90.35 2710.00.20 2909.30.40 2921.43.15 2929.90.20
2204.21.20 2710.00.25 2909.30.60 2921.43.40 2930.20.20
2204.21.50 2710.00.30 2909.49.10 2921.43.80 2930.90.29
2204.29.20 2710.00.45 2909.49.15 2921.44.10 2930.90.45
2204.29.40 2710.00.60 2909.50.10 2921.44.20 2931.00.10
2204.29.60 2801.30.20 2909.50.45 2921.44.70 2931.00.15
2204.29.80 2804.61.00 2909.50.50 2921.45.10 2931.00.22
2204.30.00 2804.69.50 2909.60.10 2921.45.20 2931.00.27
2205.90.40 2805.11.00 2909.60.20 2921.45.60 2931.00.30
2206.00.30 2805.19.00 2910.90.20 2921.45.90 2931.00.60
2206.00.60 2805.21.00 2912.21.00 2921.49.10 2932.19.10
2207.10.60 2805.30.00 2912.30.10 2921.49.37 2932.29.20
2207.20.00 2825.90.30 2913.00.40 2921.49.43 2932.29.30
2208.20.20 2827.39.40 2914.11.10 2921.49.45 2932.29.45
2208.20.30 2841.80.00 2914.40.40 2921.49.50 2932.91.00
2208.20.40 2842.10.00 2914.50.30 2921.51.10 2932.92.00
2208.20.50 2843.10.00 2914.69.20 2921.51.30 2932.93.00
2208.20.60 2844.10.50 2914.69.90 2921.51.50 2932.99.35
2208.30.30 2849.90.30 2914.70.40 2921.59.08 2932.99.39
2208.30.60 2850.00.10 2915.39.30 2921.59.30 2932.99.60
2208.40.00 2901.10.40 2915.39.35 2921.59.40 2932.99.70
2208.90.01 2901.10.50 2915.40.20 2921.59.80 2933.19.08
2208.90.20 2901.24.20 2915.40.30 2922.19.18 2933.19.37
2208.90.25 2901.24.50 2915.90.18 2922.19.20 2933.19.43
2208.90.30 2901.29.10 2916.11.00 2922.19.60 2933.29.10
2208.90.35 2901.29.50 2916.13.00 2922.19.70 2933.29.35
2208.90.40 2902.19.00 2916.15.10 2922.21.10 2933.29.43
2302.50.00 2902.90.30 2916.19.30 2922.21.40 2933.32.10
2303.10.00 2902.90.90 2916.31.30 2922.21.50 2933.32.50
2304.00.00 2903.30.05 2916.31.50 2922.22.10 2933.39.20
2306.10.00 2903.59.05 2916.32.10 2922.22.20 2933.39.30
2308.10.00 2903.59.15 2916.32.20 2922.22.50 2933.39.41
2308.90.80 2903.59.20 2916.34.10 2922.29.10 2933.39.61
2309.90.22 2903.61.20 2916.34.25 2922.29.15 2933.39.91
2309.90.24 2903.62.00 2916.34.55 2922.29.20 2933.40.15
2309.90.42 2903.69.10 2916.35.25 2922.29.27 2933.40.20
2309.90.44 2903.69.20 2916.35.55 2922.29.60 2933.40.26
2309.90.60 2903.69.23 2916.39.03 2922.29.80 2933.40.60
2309.90.95 2903.69.27 2916.39.45 2922.30.10 2933.40.70
2401.10.61 2903.69.70 2916.39.75 2922.30.25 2933.51.90
2401.10.63 2904.10.10 2917.12.10 2922.30.45 2933.59.21
2401.20.05 2904.10.15 2917.12.50 2922.42.10 2933.59.22
2401.20.31 2904.10.32 2917.19.20 2922.43.10 2933.59.36
2401.20.33 2904.10.37 2917.19.27 2922.43.50 2933.59.45
2401.20.83 2904.10.50 2917.19.40 2922.49.10 2933.59.53
2401.20.85 2904.20.10 2917.20.00 2922.49.27 2933.59.70
2401.30.25 2904.20.15 2917.36.00 2922.49.30 2933.59.80
2401.30.27 2904.20.35 2917.39.04 2922.49.37 2933.79.09
2401.30.35 2904.20.40 2917.39.15 2922.50.10 2933.79.15
2401.30.37 2904.20.45 2917.39.17 2922.50.14 2933.90.13
2402.10.30 2904.90.08 2917.39.30 2922.50.17 2933.90.26
111 STAT. 2920
2933.90.46 3403.19.10 4012.20.60 7108.12.50 7212.30.30
2933.90.53 3403.91.50 4012.20.80 7108.13.70 7212.30.50
2933.90.61 3403.99.00 4015.19.50 7114.11.45 7212.40.10
2933.90.65 3404.90.10 4015.90.00 7201.50.60 7212.40.50
2933.90.70 3407.00.40 4104.10.60 7202.11.50 7212.50.00
2933.90.75 3502.11.00 4104.10.80 7202.21.75 7212.60.00
2933.90.79 3502.19.00 4105.12.00 7202.21.90 7213.10.00
2933.90.82 3503.00.20 4105.19.10 7202.49.10 7213.20.00
2934.10.10 3503.00.40 4105.19.20 7202.70.00 7213.91.30
2934.10.20 3506.10.10 4105.20.30 7202.91.00 7213.91.45
2934.20.20 3606.90.30 4107.10.20 7202.92.00 7213.91.60
2934.20.30 3804.00.50 4107.10.30 7202.93.00 7213.99.00
2934.20.40 3805.90.00 4107.90.30 7202.99.10 7214.10.00
2934.20.80 3806.90.00 4109.00.30 7202.99.50 7214.20.00
2934.30.12 3808.10.50 4109.00.40 7206.10.00 7214.30.00
2934.30.23 3808.20.50 4304.00.00 7207.11.00 7214.91.00
2934.30.27 3808.30.50 4405.00.00 7207.12.00 7214.99.00
2934.30.43 3808.90.95 4409.10.65 7207.19.00 7215.10.00
2934.30.50 3809.92.10 4409.20.65 7207.20.00 7215.50.00
2934.90.05 3809.92.50 4412.19.50 7208.10.15 7215.90.10
2934.90.06 3809.93.10 4420.90.65 7208.10.30 7215.90.30
2934.90.39 3809.93.50 4421.10.00 7208.10.60 7216.10.00
2934.90.44 3810.10.00 4421.90.20 7208.25.30 7216.21.00
2935.00.10 3810.90.10 4421.90.40 7208.25.60 7216.22.00
2935.00.15 3810.90.50 4421.90.80 7208.26.00 7216.31.00
2935.00.48 3811.19.00 4421.90.85 7208.27.00 7216.32.00
2935.00.60 3811.21.00 4601.99.00 7208.36.00 7216.33.00
2935.00.75 3811.29.00 6901.00.00 7208.37.00 7216.40.00
2935.00.95 3811.90.00 6911.10.10 7208.38.00 7216.50.00
2942.00.05 3812.10.50 6911.10.52 7208.39.00 7216.91.00
2942.00.10 3812.20.50 6911.10.58 7208.40.30 7216.99.00
2942.00.35 3812.30.90 6911.10.80 7208.40.60 7217.10.10
3202.10.50 3814.00.10 6912.00.20 7208.51.00 7217.10.20
3204.11.10 3814.00.50 6912.00.39 7208.52.00 7217.10.30
3204.11.15 3815.90.50 6912.00.45 7208.53.00 7217.10.40
3204.11.35 3817.10.10 7002.10.10 7208.54.00 7217.10.50
3204.11.50 3817.20.00 7004.90.05 7208.90.00 7217.10.60
3204.12.17 3819.00.00 7004.90.10 7209.15.00 7217.10.70
3204.12.20 3820.00.00 7004.90.15 7209.16.00 7217.10.80
3204.12.30 3821.00.00 7004.90.20 7209.17.00 7217.10.90
3204.12.45 3823.13.00 7005.21.10 7209.18.15 7217.20.15
3204.12.50 3823.19.40 7005.21.20 7209.18.25 7217.20.30
3204.13.10 3823.70.20 7005.29.08 7209.18.60 7217.20.45
3204.13.20 3823.70.40 7005.29.18 7209.25.00 7217.20.60
3204.13.25 3823.70.60 7013.10.50 7209.26.00 7217.20.75
3204.13.60 3824.10.00 7013.21.10 7209.27.00 7217.30.15
3204.13.80 3824.40.10 7013.21.20 7209.28.00 7217.30.30
3204.14.10 3324.40.50 7013.21.30 7209.90.00 7217.30.45
3204.14.20 3824.71.00 7013.29.05 7210.11.00 7217.30.60
3204.14.25 3824.79.00 7013.29.10 7210.12.00 7217.30.75
3204.14.30 3824.90.28 7013.29.20 7210.20.00 7217.90.10
3204.14.50 3824.90.35 7013.29.30 7210.30.00 7217.90.50
3204.15.10 3824.90.45 7013.29.40 7210.41.00 7218.10.00
3204.15.20 3824.90.47 7C13.29.50 7210.49.00 7218.91.00
3204.15.30 3824.90.90 7013.29.60 7210.50.00 7218.99.00
3204.15.35 3912.20.00 7013.31.10 7210.61.00 7219.11.00
3204.15.40 3916.90.30 7013.31.20 7210.69.00 7219.12.00
3204.15.80 3918.10.32 7013.32.10 7210.70.30 7219.13.00
3204.16.10 3918.10.40 7013.32.20 7210.70.60 7219.14.00
3204.16.20 3918.90.20 7013.32.30 7210.90.10 7219.21.00
3204.16.30 3918.90.30 7013.32.40 7210.90.60 7219.22.00
3204.16.50 3921.13.19 7013.39.10 7210.90.90 7219.23.00
3204.17.04 3921.90.19 7013.39.20 7211.13.00 7219.24.00
3204.17.20 3921.90.21 7013.39.30 7211.14.00 7219.31.00
3204.17.60 3921.90.29 7013.39.40 7211.19.15 7219.32.00
3204.17.90 3926.20.40 7013.39.50 7211.19.20 7219.33.00
3204.19.11 3926.30.50 7013.39.60 7211.19.30 7219.34.00
3204.19.20 3926.90.55 7013.91.10 7211.19.45 7219.35.00
3204.19.25 3926.90.59 7013.91.20 7211.19.60 7219.90.00
3204.19.30 3926.90.65 7013.91.30 7211.19.75 7220.11.00
3204.19.40 3926.90.77 7013.99.10 7211.23.15 7220.12.10
3204.19.50 3926.90.85 7013.99.20 7211.23.20 7220.12.50
3205.00.40 4007.00.00 7013.99.40 7211.23.30 7220.20.10
3205.00.50 4008.21.00 7013.99.50 7211.23.45 7220.20.60
3206.49.20 4010.12.90 7013.99.60 7211.23.60 7220.20.70
3206.50.00 4010.19.80 7013.99.70 7211.29.20 7220.20.80
3207.40.50 4010.21.30 7013.99.80 7211.29.45 7220.20.90
3211.00.00 4010.22.30 7013.99.90 7211.29.60 7220.90.00
3214.90.50 4010.23.50 7018.20.00 7211.90.00 7221.00.00
3301.13.00 4010.24.50 7019.19.90 7212.10.00 7222.11.00
3302.10.90 4010.29.10 7019.90.10 7212.20.00 7222.19.00
3403.11.20 4010.29.50 7104.20.00 7212.30.10 7222.20.00
111 STAT. 2921
7222.30.00 7304.29.60 8102.10.00 8529.90.13 8714.91.50
7222.40.30 7304.31.30 8102.91.10 8529.90.33 8714.91.90
7222.40.60 7304.31.60 8104.19.00 8529.90.36 8714.92.10
7223.00.10 7304.39.00 8104.30.00 8529.90.39 8714.93.28
7223.00.50 7304.41.30 8105.10.30 8529.90.43 8714.93.35
7223.00.90 7304.41.60 8108.10.50 8529.90.46 8714.94.90
7224.10.00 7304.49.00 8109.10.60 8529.90.49 8714.95.00
7224.90.00 7304.51.10 8111.00.45 8529.90.53 8714.96.10
7225.11.00 7304.51.50 8112.40.60 8529.90.69 8714.96.90
7225.19.00 7304.59.10 8112.91.40 8529.90.83 8714.99.10
7225.20.00 7304.59.20 8112.91.60 8529.90.86 8714.99.80
7225.30.10 7304.59.60 8203.20.40 8529.90.89 9029.20.20
7225.30.30 7304.59.80 8205.90.00 8529.90.93 9029.90.40
7225.30.50 7304.90.10 8206.00.00 8532.10.00 9103.10.20
7225.30.70 7304.90.30 8213.00.90 8532.22.00 9103.10.40
7225.40.10 7304.90.50 8214.90.30 8532.23.00 9103.10.80
7225.40.30 7304.90.70 8301.10.20 8532.25.00 9103.90.00
7225.40.50 7305.11.10 8301.10.40 8532.30.00 9104.00.05
7225.40.70 7305.11.50 8301.10.80 8533.31.00 9104.00.10
7225.50.10 7305.12.10 8302.30.60 8533.39.00 9104.00.20
7225.50.60 7305.12.50 8430.49.40 8533.40.80 9104.00.25
7225.50.70 7305.19.10 8431.43.40 8533.90.40 9104.00.30
7225.50.80 7305.19.50 8482.10.10 8533.90.80 9104.00.40
7226.11.10 7305.20.20 8482.10.50 8540.11.10 9104.00.45
7226.11.90 7305.20.40 8482.20.00 8540.11.24 9104.00.50
7226.19.10 7305.20.60 8482.91.00 8540.11.28 9104.00.60
7226.19.90 7305.20.80 8482.99.05 8540.11.30 9105.11.40
7226.20.00 7305.31.40 8482.99.15 8540.11.44 9105.11.80
7226.91.15 7305.31.60 8482.99.25 8540.11.48 9105.19.20
7226.91.25 7305.39.10 8482.99.35 8540.11.50 9105.19.30
7226.91.50 7305.39.50 8482.99.45 8540.12.50 9105.19.50
7226.91.70 7305.90.10 8482.99.65 8540.12.70 9105.21.40
7226.91.80 7305.90.50 8483.20.80 8540.20.20 9105.21.80
7226.92.10 7306.10.10 8483.30.80 8540.20.40 9105.29.10
7226.92.30 7306.10.50 8483.60.80 8540.40.00 9105.29.20
7226.92.50 7306.20.10 8483.90.30 8540.50.00 9105.29.30
7226.92.70 7306.20.20 8483.90.70 8540.60.00 9105.29.40
7226.92.80 7306.20.30 8483.90.80 8540.71.40 9105.29.50
7226.93.00 7306.20.40 8521.90.00 8540.72.00 9105.91.40
7226.94.00 7306.20.60 8525.10.20 8540.79.00 9105.91.80
7226.99.00 7306.20.80 8527.13.20 8540.81.00 9105.99.20
7227.10.00 7306.30.10 8527.13.40 8540.89.00 9105.99.30
7227.20.00 7306.30.50 8527.21.40 8540.91.15 9105.99.40
7227.90.10 7306.40.10 8527.29.80 8540.91.20 9105.99.50
7227.90.20 7306.40.50 8527.31.05 8540.91.50 9105.99.60
7227.90.60 7306.50.10 8527.31.50 8540.99.40 9106.10.00
7228.10.00 7306.50.50 8527.31.60 8540.99.80 9106.20.00
7228.20.10 7306.60.10 8527.90.40 8607.19.03 9106.90.75
7228.20.50 7306.60.30 8528.12.08 8607.19.06 9106.90.85
7228.30.20 7306.60.50 8528.12.20 8701.20.00 9107.00.80
7228.30.60 7306.60.70 8528.12.24 8703.10.10 9109.11.10
7228.30.80 7306.90.10 8528.12.32 8703.21.00 9109.11.20
7228.40.00 7306.90.50 8528.12.40 8703.22.00 9109.11.40
7228.50.10 7307.19.90 8528.12.48 8703.23.00 9109.11.60
7228.50.50 7307.93.30 8528.12.56 8703.24.00 9109.19.10
7228.60.10 7308.90.30 8528.12.68 8703.31.00 9109.19.20
7228.60.60 7308.90.60 8528.12.72 8703.32.00 9109.19.40
7228.60.80 7312.10.30 8528.12.84 8703.33.00 9109.19.60
7228.70.30 7312.10.50 8528.12.88 8703.90.00 9109.90.20
7228.70.60 7312.10.60 8528.13.00 8704.10.10 9109.90.40
7228.80.00 7312.10.70 8528.21.10 8704.10.50 9109.90.60
7229.10.00 7312.10.90 8528.21.24 8704.21.00 9110.90.20
7229.20.00 7314.31.10 8528.21.29 8704.22.10 9110.90.40
7229.90.10 7314.41.00 8528.21.39 8704.22.50 9110.90.60
7229.90.50 7314.42.00 3528.21.42 8704.23.00 9111.10.00
7229.90.90 7317.00.55 8528.21.49 8704.31.00 9111.20.20
7301.10.00 7318.11.00 8528.21.52 8704.32.00 9111.20.40
7301.20.10 7318.14.10 8528.21.65 8704.90.00 9111.80.00
7301.20.50 7318.14.50 8528.21.70 8706.00.03 9111.90.40
7302.10.10 7320.10.60 8528.21.85 8706.00.05 9111.90.50
7302.10.50 7324.90.00 8528.21.90 8706.00.15 9111.90.70
7302.20.00 7601.10.30 8528.22.00 8706.00.25 9112.10.00
7302.40.00 7601.20.30 8528.30.20 8707.10.00 9113.90.40
7304.10.10 7601.20.60 8528.30.40 8707.90.50 9114.10.40
7304.10.50 7604.21.00 8528.30.60 8708.92.50 9114.10.80
7304.21.30 7614.10.10 8528.30.66 8712.00.15 9114.30.40
7304.21.60 7614.90.40 8528.30.68 8712.00.25 9114.30.80
7304.29.10 7901.12.10 8528.30.78 8712.00.35 9114.40.20
7304.29.20 8101.10.00 8528.30.90 8712.00.44 9114.40.40
7304.29.30 8101.91.50 8529.10.20 8712.00.48 9114.40.60
7304.29.40 8101.92.00 8529.90.03 8713.90.00 9114.40.80
7304.29.50 8101.93.00 8529.90.06 8714.91.30 9114.90.15
111 STAT. 2922
9114.90.30 9305.10.20 9507.30.40 9603.10.40 9608.50.00
9114.90.40 9404.29.10 9507.90.70 9603.10.50 9612.20.00
9114.90.50 9506.99.08 9603.10.05 9603.10.60 9616.20.00
9209.91.80 9507.10.00 9603.10.15 9608.31.00
9302.00.00 9507.30.20 9603.10.35 9608.39.00
Annex III Harmonized Tariff Schedule of the United States ("HTS") Subheadings and Countries Granted Waivers of the Application of Section 503(c)(2)(A) of the 1974 Act
HTS Subheading Country HTS Subheading Country
0802.90.94 Cote d'Ivoire 6905.10.00 Venezuela
1604.16.10 Morocco 8414.30.40 Brazil
1604.16.30 Morocco 8469.12.00 Indonesia
2905.11.20 Venezuela 8471.49.26 Thailand
2909.19.14 Venezuela 8471.60.35 Thailand
2917.37.00 Romania 8517.19.40 Thailand
2933.39.25 Brazil 8517.19.80 Thailand
2933.40.30 Brazil 8527.21.10 Brazil
4104.39.20 Thailand 8527.31.40 Indonesia
4107.90.60 South Africa 8527.90.90 Philippines
4203.21.20 Indonesia 9032.89.60 Philippines
Annex IV Staged Rate Modifications to the Harmonized Tariff Schedule of the United States ("HTS")
HTS Subheading 1998 1999 2000
0802.90.94 7¢/kg 6¢/kg 5¢/kg
0802.90.98 7¢/kg 6¢/kg 5¢/kg
7008 May 30, 1997 Small Business Week, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7008 of May 30, 1997
Small Business Week, 1997 By the President of the United States of America A Proclamation

America was built on the enterprise of our people—on their ideas, their energy, their willingness to take risks, and their willingness to pursue their dreams. Throughout the decades, men and women of independence, optimism, and determination have come to our shores, confident in the knowledge that in America they could build a life for themselves and their families through their own initiative, creating and developing businesses in every field of endeavor.

The success of the small business community has been a hallmark of our free enterprise system, helping to drive the engine of America’s economy as we compete in the global marketplace. The invaluable contributions of small business owners to the strength of our economy are reflected in some extraordinary statistics. The recent record growth of the small business community has resulted in 840,000 new employer 111 STAT. 2923firms over the past year—the highest number ever, and a 2-percent increase over the last record set in 1995. Small businesses employ 53 percent of America’s private work force, account for 47 percent of all sales in the country, and generate more than half of our private gross domestic product; and industries dominated by small business produced almost 1.5 million new jobs in the last year alone.

Our challenge now is to help America's small business community build on this phenomenal record of success. My Administration is committed to giving small business men and women the opportunity to realize their dreams. The Small Business Administration has a portfolio guaranteeing over $27 billion in loans to 185,000 small businesses that otherwise would not have access to such capital. We are encouraging microenterprise through the Department of Treasury’s Community Development Financial Institution Fund, an initiative that makes it easier for prospective entrepreneurs to obtain the training and financing they need to start their own businesses. Working in partnership with State governments, we are striving to help modernize our Nation’s small and medium-sized manufacturers and removing regulatory barriers to the adoption of new technologies in such fields as telemedicine, building and construction, and environmental technologies. We have also developed a National Export Strategy to help America's small and medium-sized businesses realize their export potential and compete effectively in the global marketplace.

As we observe Small Business Week, I join all Americans in saluting the men and women who have embraced the opportunities our country offers, whose hard work is transforming their communities, and whose energy and initiative are building our country into the kind of Nation we want to be in the 21st century.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim June 1 through June 7, 1997, as Small Business Week. I call upon Government officials and all the people of the United States to observe this week with appropriate ceremonies, activities, and programs that celebrate the achievements of small business owners and encourage the development of new enterprises.

IN WITNESS WHEREOF, I have hereunto set my hand this thirtieth day of May, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 7009 June 6, 1997 Flag Day and National Flag Week, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7009 of June 6, 1997
Flag Day and National Flag Week, 1997 By the President of the United States of America A Proclamation

Our Nation’s flag has always flown in the vanguard of the American journey, reminding us of our proud past and beckoning us into a future full of promise. Its bold colors reflect the courage and exuberance of 111 STAT. 2924the American people, and its simple but inspired design symbolizes both the unity and diversity that define our Nation.

Adopted by the Continental Congress on June 14, 1777, the Stars and Stripes became the official flag of the young United States and a compelling symbol of our new independence. Woven into its folds were the hopes, dreams, and determination of the extraordinary individuals who founded this country—hopes for a system of government that would honor the rights and dignity of every citizen; dreams that their great experiment in democracy would succeed; and determination to ensure that success, even at the cost of their own lives. Since that time, generations of Americans have invested the flag with their own hopes and dreams. Millions of immigrants, traveling to these shores to flee poverty or oppression, have rejoiced at their first glimpse of the American flag, confident that its promise of freedom, equality, and opportunity would prove true for them and their families.

We have carried Old Glory to places undreamed of by our founders, from the depths of Earth’s oceans to the Sea of Tranquility on the Moon. Through conflict and in peace, on missions of exploration and on missions of mercy, the flag has led us wherever our questing spirits have been willing to venture, and whenever America's freedom, security, and values have been threatened.

On Flag Day and during National Flag Week, I encourage all Americans to join me in reflecting on the proud history and profound meaning of our flag. And let us pledge to keep faith with those generations of patriots, both military and civilian, who gave their lives to keep the flag flying over a Nation that is free, strong, and true to our highest ideals.

To commemorate the adoption of our flag, the Congress, by joint resolution approved August 3, 1949 (63 Stat. 492), designated June 14 of each year as “Flag Day” and requested the President to issue an annual proclamation calling for its observance and for the display of the Flag of the United States on all Federal Government buildings. The Congress also requested the President, by joint resolution approved June 9, 1966 (80 Stat. 194), to issue annually a proclamation designating the week in which June 14 occurs as “National Flag Week” and calling upon all citizens of the United States to display the flag during that week.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim June 14, 1997, as Flag Day and the week beginning June 8, 1997, as National Flag Week. I direct the appropriate officials to display the flag on all Federal Government buildings during that week, and 1 urge all Americans to observe Flag Day and National Flag Week by flying the Stars and Stripes from their homes and other suitable places.

I also call upon the people of the United States to observe with pride and all due ceremony those days from Flag Day through Independence Day, also set aside by the Congress (89 Stat. 211), as a time to honor our Nation, to celebrate our heritage in public gatherings and activities, and to publicly recite the Pledge of Allegiance to the Flag of the United States of America.

IN WITNESS WHEREOF, I have hereunto set my hand this sixth day of June, in the year of our Lord nineteen hundred and ninety-seven, 111 STAT. 2925and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 7010 June 12, 1997 Father’s Day, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7010 of June 12, 1997
Father’s Day, 1997 By the President of the United States of America A Proclamation

Raising a child is a sacred mission, and the man who welcomes this mission and embraces the obligations of fatherhood is someone who truly deserves our recognition and gratitude. On Father’s Day, we honor all the men across our country who have affirmed the importance of parenthood by willingly assuming its important responsibilities.

The tight grasp of a newborn baby’s tiny hand curled around his or her father’s finger only hints at the strength of the bond that will grow in all the seasons of life between father and child. Caring fathers are not content to merely safeguard their children’s physical well-being, but also seek to foster their spiritual and moral growth, and pass on their most cherished values. Mentor, teacher, coach, friend, and hero, a father gives his son or daughter all that his mind, his hands, and his heart can provide. No work is too hard, no sacrifice is too great if doing so will strengthen, protect, nurture, and instill joy in his child.

Fathers teach their children to take pride in themselves and their work, to assume responsibility for their lives and character, and to understand the rewards of sharing with others. Most important, fathers— whether biological, adoptive, or foster—offer the strong, steady current of love that sustains their sons and daughters through the good times and bad times that all of us face.

Our Nation is blessed that so many Americans cherish the role of fatherhood in our families, for fathers add a crucial stability and strength to our lives. On Father’s Day, let us honor and give thanks to these men who share with their children not only the precious gifts of life and love, but also their time, attention, and the kind of caring concern that lasts a lifetime.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, in accordance with a joint resolution of the Congress approved April 24, 1972 (36 U.S.C. 142a), do hereby proclaim Sunday, June 15, 1997, as Father's Day. I invite the States, communities, and citizens of the United States to observe this day with appropriate ceremonies and activities that demonstrate our deep respect and abiding affection for our fathers.

IN WITNESS WHEREOF, I have hereunto set my hand this twelfth day of June, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 7011 June 30, 1997 To Implement the World Trade Organization Ministerial Declaration on Trade in Information Technology Products and the Agreement on Distilled Spirits Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7011 of June 30, 1997 111 STAT. 2926
To Implement the World Trade Organization Ministerial Declaration on Trade in Information Technology Products and the Agreement on Distilled Spirits By the President of the United States of America A Proclamation

1. On December 13, 1996, the first Ministerial Meeting of the World Trade Organization (“the WTO”) issued a Declaration On Trade In Information Technology Products (“the ITA”), which established a framework for expanding world trade in information technology products and enhancing market access opportunities for such products. To implement that declaration, 42 WTO members and governments in the process of acceding to the WTO agreed to eliminate duties on information technology products. These products encompass computers and computer equipment, semiconductors and integrated circuits, computer software products, telecommunications equipment, semiconductor manufacturing equipment, and computer-based analytical instruments. The participants further agreed on the common objective of achieving, where appropriate, a common classification of such goods for tariff purposes within the existing nomenclature of the Harmonized Commodity Description and Coding System (HS), and on a possible future joint suggestion to the World Customs Organization to update existing HS nomenclature or to otherwise remedy any divergence in classification of such goods or in interpretation of the HS nomenclature.

2. The United States and the European Union, on behalf of its 15 member states, also reached agreement at the WTO Ministerial Meeting on the elimination of duties on certain distilled spirits.

3. Section 111(b) of the Uruguay Round Agreements Act (URAA)(19 U.S.C. 3521(b)) authorizes the President to proclaim the modification of any duty or staged rate reduction of any duty set forth in Schedule XX for products in tariff categories that were the subject of reciprocal duty elimination or harmonization negotiations during the Uruguay Round, if the United States agrees to such action in a multilateral negotiation under the auspices of the WTO and after compliance with the requirements of section 115 of the URAA (19 U.S.C. 3524). The products covered by the ITA and the Agreement on Distilled Spirits were the subject of reciprocal duty elimination negotiations during the Uruguay Round.

4. Accordingly, pursuant to section 111(b) of the URAA, I have determined to proclaim modifications in the tariff categories and rates of duty set forth in the Harmonized Tariff Schedule (“the HTS”), as set forth in the Annexes to this proclamation.

5. Proclamation 6763 of December 23, 1994, implemented the tariff and other customs treatment resulting from the Uruguay Round of multilateral trade negotiations, as set forth in Schedule XX. with respect to the United States. Proclamation 6641 of December 15, 1993, implemented the North American Free Trade Agreement (“the NAFTA”) with respect to the United States and incorporated in the HTS the tariff modifications and rules of origin necessary or appropriate to carry out or apply the NAFTA. Certain tariff provisions established by these procla-111 STAT. 2927mations, including staged reductions in rates of duty, and certain NAFTA rules of origin must be modified in light of the implementation of the ITA, to ensure that the previously proclaimed tariff and other customs treatment will be continued, and to take into account the tariff treatment provided for in the ITA. Accordingly, I have determined to modify the HTS in order to continue or provide such tariff, and other customs treatment.

6. Section 604 of the Trade Act of 1974, as amended (“the 1974 Act”) (19 U.S.C. 2483), authorizes the President to embody in the HTS the substance of the relevant provisions of that Act, and of other acts affecting import treatment, and actions thereunder, including removal, modification, continuance, or imposition of any rate of duty or other import restriction.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, acting under the authority vested in me by the Constitution and the laws of the United States of America, including but not limited to section 111(b) of the URAA and section 604 of the 1974 Act, do hereby proclaim:

(1) In order to provide for the immediate or staged elimination of duties on the information technology products covered by the ITA and on certain distilled spirits, and to make conforming changes in other provisions, the HTS is modified as set forth in the Annexes to this proclamation.

(2) The modifications to the HTS made by this proclamation shall be effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after the dates specified in the Annexes to this proclamation.

(3) All provisions of previous proclamations and Executive orders that are inconsistent with the actions taken in this proclamation are superseded to the extent of such inconsistency.

IN WITNESS WHEREOF, I have hereunto set my hand this thirtieth day of June, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-first.
WILLIAM J. CLINTON 111 STAT. 2928 Annex I Modifications to the Harmonized Tariff Schedule of the United States ("HTS")

The Harmonized Tariff Schedule of the United States (“HTS”) is modified as provided below, with bracketed matter included to assist in the understanding of proclaimed modifications. The following supersedes matter in the HTS. The subheadings and superior text are set forth in columnar format, and material in such columns is inserted in the columns of the HTS designated “Heading/Subheading”, “Article Description”, “Rates of Duty 1 General”, “Rates of Duty 1 Special”, and “Rates of Duty 2”, respectively.

Section A. Effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after January 1, 1996, the tariff classification rules ("TCRs") of subdivision (t) of general note 12 are modified by redesignating TCR 5 for chapter 85 as TCR 5A, and by inserting the following new TCR 5 immediately after TCR 4 for such chapter: “5. A change to tariff item 8504.40.40 from any other tariff item, except from tariff item 8504.90.70."
Section B. Effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after July 1, 1997. (1). General note 4(d) is modified by deleting “8471.49.37 Argentina”, “8471.60.57 Argentina”, “8471.70.50 Philippines”, “8524.99.40 Argentina” and “8536.90.00 Argentina” and by inserting “8524.99.60 Argentina”, “8524.99.90 Argentina”, “8536.90.40 Argentina” and “8536.90.80 Argentina” in numerical sequence. (2). General note 11(d)(viii) is modified by deleting “2208.40.00” and inserting “2208.40” in lieu thereof. (3). The tariff classification rules (“TCRs”) of subdivision (t) of general note 12 are modified as follows: (a). TCR 129(A), TCR 130(B), TCR 131(B), TCR 132(B), TCR 133, TCR 134(B), TCR 135, TCR 136, TCR 137(A)(2), TCR 137(B)(2), TCR 138, TCR 139(A)(2), TCR 139(B)(2), TCR 140, TCR 141(A)(2), TCR 141(B)(2), TCR 142, TCR 143(A)(2), TCR 143(B)(2), TCR 144, TCR 145(A)(2), TCR 145(B)(2), TCR 146, TCR 147(B), TCR 148, TCR 149(B), TCR 150, TCR 151(B), TCR 152, TCR 153(B), TCR 154, TCR 155(B), TCR 156, TCR 157(B), TCR 159(B), TCR 161(B), TCR 164(B) and TCR 166(B) for chapter 84 are each modified by deleting from such rules “8466.93.30 or 8466.93.45,” and inserting “8466.93.30, 8466.93.47 or 8466.93.53,” in lieu thereof. (b). TCR 158, TCR 160, TCR 162, TCR 163, TCR 165 and TCR 167 for chapter 84 are each modified by deleting from such rules “8466.93.30 or 8466.93.45.” and inserting “8466.93.30, 8466.93.47 or 8466.93.53.” in lieu thereof. (c). TCR 168, TCR 170, TCR 172, TCR 174, TCR 176, TCR 178 and TCR 179 for chapter 84 are each modified by deleting from such rules “8466.94.60 or” and inserting “8466.94.55, 8466.94.65 or” in lieu thereof. (d). TCR 169(B), TCR 171(B), TCR 173(B), TCR 175(B) and TCR 177(B) for chapter 84 are each modified by deleting from such rules “8466.94.20 or 8466.94.60” and inserting “8466.94.20, 8466.94.55 or 8466.94.65” in lieu thereof. (e). TCR 207 for chapter 84 is modified by deleting from such rule “item 8473.10.30” and inserting “items 8473.10.20 or 8473.10.40” in lieu thereof. (f). TCR 222, TCR 223 and TCR 224 for chapter 84 are each modified by deleting from such rules “item 8477.90.20” and inserting “items 8477.90.15 or 8477.90.25” in lieu thereof. 111 STAT. 2929 (g). TCR 222(A) and TCR 223(A) for chapter 84 are each modified by deleting from such rules “item 8477.90.40,” and inserting “items 8477.90.35 or 8477.90.45,” in lieu thereof. (h). TCR 224(A) for chapter 84 is modified by deleting from such rule “item 8477.90.60,” and inserting “items 8477.90.55 or 8477.90.65,” in lieu thereof. (i). TCR 5 for chapter 85 is modified by deleting from such rule “item 8504.90.70” and inserting “items 8504.90.65 or 8504.90.75” in lieu thereof. (j). TCR 77, 79, 79A, 80(C), 82, 83 and 94 for chapter 85 are each modified by deleting from such rule “8529.90.19 or 8529.90.23” and inserting “8529.90.19, 8529.90.22 or 8529.90.24” in lieu thereof. (k). TCR 84, 92A, 92B and 92K for chapter 85 are each modified by deleting from such rule “8529.90.23” and inserting “8529.90.22, 8529.90.24” in lieu thereof. (l). TCR 99 for chapter 85 is modified by deleting from such rule “8529.90.73 or 8529.90.76” and inserting “8529.90.73, 8529.90.74 or 8529.90.77” in lieu thereof. (m). TCR 100(A) and 100(B) for chapter 85 are each modified by deleting from such rule “8529.90.83 or 8529.90.85” and inserting “8529.90.83, 8529.90.84 or 8529.90.87” in lieu thereof. (n). TCR 104 for chapter 85 is modified by deleting from such rule “item 8531.90.40.” and inserting “items 8531.90.10 or 8531.90.30.” in lieu thereof. (o). TCR 106 for chapter 85 is modified by deleting from such rule “item 8531.90.40:” and inserting “items 8531.90.10 or 8531.90.30:” in lieu thereof. (p). TCR 117(A), TCR 117(B), TCR 120(A), TCR 120(B), TCR 121(A) and TCR 121(B) for chapter 85 are each modified by deleting from such rules “items 8538.90.20” and inserting “items 8538.90.10, 8538.90.30” in lieu thereof. (q). TCR 144(A) and TCR 144(B) for chapter 85 are each modified by deleting from such rules “items 8543.90.15 or 8543.90.55” and inserting “items 8543.90.15, 8543.90.64 or 8543.90.68” in lieu thereof. (r). TCR 70 for chapter 90 is modified by deleting from such rule “items 9030.90.25 or 9030.90.65” and inserting “items 9030.90.25, 9030.90.64 or 9030.90.68” in lieu thereof. (4). Subheading 2208.40.00 is superseded by:
[Undenatured ethyl alcohol of an:]
 Rum and tafia:
  In containers each holding not over 4 liters:
2208.40.20    Valued not over $3 per proof liter See section A of Annex II to this proclamation Free (A+, CA, E, IL) $1.32/pf. liter
22.2¢/pf. liter (MX)
2208.40.40    Valued over $3 per proof liter See section A of Annex II to this proclamation Free (A+, CA, E, IL) $1.32/pf. liter"
22.2¢/pf. liter (MX)
111 STAT. 2930
[Undenatured ethyl alcohol of an:]
“2208.40 (con)  Rum and tafia (con.):
  In containers each holding not over 4 liters:
2208.40.60    Valued not over 69¢ per proof liter See section A of Annex II to this proclamation Free (A+, CA, E, IL) $1.32/pf. liter
22.2¢/pf. liter (MX)
2208.40.80    Valued over 69¢ per proof liter See section A of Annex II to this proclamation Free (A+, CA, E, IL) $1.32/pf. liter"
22.2¢/pf. liter (MX)
(5). Subheading 7017.10.00 is superseded by:
[Laboratory, hygienic or]
“7017.10  Of fused quartz or other fused silica:
7017.10.30   Quartz reactor tubes and holders designed for insertion into diffusion and oxidation furnaces for production of semiconductor wafers. See section A of Annex II to this proclamation Free (A, E, IL, J, MX) 50%
0.5% (CA)
7017.10.60   Other See section A of Annex II to this proclamation Free (A, E, IL, J, MX) 50%"
0.5% (CA)
(6). Heading 7020.00.00 is superseded by:
“7020.00 Other articles of glass:
7020.00.30  Quartz reactor tubes and holders designed for insertion into diffusion and oxidation furnaces for production of semiconductor wafers See section A of Annex II to this proclamation Free (A, E, IL, J, MX) 55%
0.6% (CA)
7020.00.60  Other See section A of Annex II to this proclamation Free (A, E, IL, J, MX) 55%"
0.6% (CA)
(7). The additional U.S. notes to chapter 84 are modified: (a). by deleting “8479.89.95” from additional U.S. note 1 and inserting “8479.89.97” in lieu thereof, and by deleting “8479.90.95” from such note and inserting “8479.90.97” in lieu thereof. (b). by inserting the following new additional U.S. note: “3. For the purposes of subheadings 8466.10.40, 8466.20.40, 8466.30.20 and 8466.30.40, the expression “machines described in additional U.S, note 3 to chapter 84” means any of the following machines: machines of subheading 8456.10.60; machines of subheading 8456.91; machines of 8456.99.10; machines of subheading 8456.99.70; machines of subheading 8462.21.40 or 8462.29.40; machines of subheading 8464.10 for sawing monocrystal semiconductor boules into slices, or wafers into chips; machines of subheading 8464.20.10; machines of subheading 8464.90.10; machines of subheading 8464.90.60." 111 STAT. 2931 (8). Subheadings 8421.19.00 and 8421.91.60 are superseded and the following inserted, in numerical sequence, in lieu thereof:
[Centrifuges, including centrifugal:]
 [Centrifuges, including centrifugal dryers:]
“8421.19   Other:
8421.19.30    Spin dryers for semiconductor wafer processing See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 25%
8421.19.90    Other See section A of Annex II to this proclamation Free (A, C, CA, E, IL, J, MX) 25%"
[Parts:]
 [Of centrifuges,:]
“8421.91.70   Of spin dyers of subheading 8421.19.30 See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 25%
8421.91.90   Other See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 25%"
(9). Subheadings 8424.30.90, 8424.89.90 and 8424.90.90 are superseded and the following inserted, in numerical sequence, in lieu thereof:
[Mechanical appliances (whether or:]
 [Steam or sand blasting:]
“8424.30.40   Deflash machines for cleaning and removing contaminants from the metal leads of semiconductor packages prior to the electroplating process (deflash by projectile beads) See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8424.30.80   Other See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%"
[Other appliances:]
 [Other:]
“8424.89.50   Spraying appliances for developing semiconductor wafers; spraying appliances for etching, developing, stripping or cleaning flat panel displays; deflash machines for cleaning and removing contaminants from the metal leads of semiconductor packages prior to the electroplating process (deflash by high pressure spray) See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
“8421.91.70   Other See section A of Annex II to this proclamation Free (A, B, CA, E, IL, J, MX) 35%"
[Parts:]
“8424.90.60   Of spraying appliances of subheading 8424.89 for etching, developing, stripping or cleaning semiconductor wafers and flat panel displays See section A of Annex II to this proclamation Free (A, B, CA, E, IL, J, MX) 35%
8424.90.80   Other See section A of Annex II to this proclamation Free (A, B, CA, E, IL, J, MX) 35%"
111 STAT. 2932 (10). The article description for subheading 8424.89.30 is modified by deleting the word “designed”. (11). Subheadings 8428.20.00, 8428.33.00, 8428.39.00 and 8428.90.00 are superseded and the following inserted, in numerical sequence, in lieu thereof:
[Other lifting, handling, loading or:]
“8428.20  Pneumatic elevators and conveyors:
8428.20.40   Automated machines for transport, handling and storage of semiconductor wafers, wafer cassettes, wafer boxes and other material for semiconductor devices See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8428.20.80   Other See section A of Annex II to this proclamation Free (A, B, C, CA, E, IL, J, MX) 35%"
[Other continuous-action elevators:]
“8428.33  Other, belt type:
8428.33.40   Automated machines for transport, handling and storage of semiconductor wafers, wafer cassettes, wafer boxes and other material for semiconductor devices See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8428.33.80   Other See section A of Annex II to this proclamation Free (A, B, CA, E, IL, J, MX) 35%
8428.39  Other:
8428.39.40   Automated machines for transport, handling and storage of semiconductor wafers, wafer cassettes, wafer boxes and other material for semiconductor devices See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8428.39.80   Other See section A of Annex II to this proclamation Free (A, B, C, CA, E, IL, J, MX) 35%
8428.90 Other machinery:
8428.90.40  Automated machines for transport, handling and storage of semiconductor wafers, wafer cassettes, wafer boxes and other material for semiconductor devices See section A of Annex II to this proclamation Free (A, CA, E, IL, J) 35%
0.4% (MX)
8428.90.80  Other See section A of Annex II to this proclamation Free (A, B, C, CA, E, IL, J) 35%"
0.4% (MX)
111 STAT. 2933 (12). Subheading 8431.39.00 is superseded by:
[Parts suitable for use solely or principally with the machinery of headings 8425 to 8430:]
 [Of machinery of heading 8428:]
“8431.39   Other:
8431.39.40    Of automated machines for transport, handling and storage of semiconductor wafers, wafer cassettes, wafer boxes and other material for semiconductor devices See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8431.39.80    Other See section A of Annex II to this proclamation Free (A, B, CA, E, IL, J, MX) 35%"
(13). Subheadings 8456.10.50 and 8456.99.50 are superseded and the following inserted, in numerical sequence, in lieu thereof:
[Machine tools for working any:]
 [Operated by laser or other light or:]
  "Other:
8456.10.60    For use in the production of semiconductor wafers; lasercutters for cutting contacting tracks in semiconductor production See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8456.10.80    Other See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%"
[Other:]
 [Other:]
  "Other:
8456.99.70    For stripping and cleaning semiconductor wafers See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8456.99.90    Other See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%"
(14). The article description for subheading 8456.99.10 is modified by deleting the word “designed”, and by deleting the expression “of semiconductor device designs” and inserting in lieu thereof “for patterns on semiconductor devices”. (15). Subheadings 8462.21.00 and 8462.29.00 are superseded by:
[Machine tools (including presses) for:]
 [Bending, folding, straightening or:]
“8462.21   Numerically controlled:
8462.21.40    For bending, folding and straightening semiconductor leads See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 30%
8462.21.80    Other 4.4% Free (A, CA, E, IL, J, MX) 30%
8462.29   Other:
8462.29.40    For bending, folding and straightening semiconductor leads See section A of Anne II of this proclamation Free (A, CA, E, IL, J, MX) 30%
8462.29.80    Other 4.4% Free (A, CA, E, IL, J, MX) 30%"
111 STAT. 2934 (16). The article description for subheading 8464.20.10 is modified by deleting the expression “Machines designed to process” and inserting in lieu thereof “For processing of”. (17). The article description for subheading 8464.90.10 is modified by deleting such description and inserting in lieu thereof “For scribing or scoring semiconductor wafers; for wet-etching semiconductor wafers”. (18). Subheading 8464.90.50 is superseded by:
[Machine tools for working stone,:]
 [Other:
“8464.90.60   For wet-developing or -stripping semiconductor wafers; for wet-etching, -developing, or -stripping flat panel displays See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8464.90.90   Other See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%"
(19). Subheading 8465.99.00 is superseded by:
[Machine tools (including machines for:]
 [Other:]
“8465.99   Other:
8465.99.40    Deflash machines for cleaning and removing contaminants from the metal leads of semiconductor packages prior to the electroplating process (deflash by chemical bath) See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8465.99.80    Other See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%"
(20). Subheadings 8466.10.00, 8466.20.90, 8466.30.30, 8466.30.50, 8466.91.50, 8466.93.45, 8466.93.90, 8466.94.60 and 8466.94.80 are superseded and the following inserted, in numerical sequence, in lieu thereof:
[Parts and accessories suitable for use:]
“8466.10  Tool holders and self-opening dieheads:
8466.10.40   Tool holders for the machines described in additional U.S. note 3 to chapter 84 See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 45%
8466.10.80   Other See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 45%"
 [Work holders:]
“8466.20.40   For the machines described in additional U.S. note 3 to chapter 84 See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8466.20.80   Other See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%"
111 STAT. 2935
[Parts and accessories suitable for use:]
 [Dividing heads and other special:]
  [Other special attachments:]
   "For the machines described in additional U.S. note 3 to chapter 84:
8466.30.20     Machines See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8466.30.40     Other See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 45%
   Other:
8466.30.60     Machines See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8466.30.80     Other See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 45%"
 [Other:]
  [For machines of heading 8464:]
   "Other:
8466.91.40     Of machines of subheading 8464.10 for sawing monocrystal semiconductor boules into slices, or wafers into chips; of machines of subheading 8464.20.10; of machines of subheading 8464.90.10; of machines of subheading 8464.90.60 See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8466.91.80     Other See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%"
  [For machines of headings 8456 to 8461:]
   [Bed, base, table, head,:]
    [Other:]
“8466.93.47      Of machines of subheading 8456.10.60; of machines of subheading 8456.91; of machines of 8456.99.10; of machines of subheading 8456.99.70 See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8466.93.53      Other See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%"
   [Other:]
    [Other:]
“8466.93.85      Of machines of subheading 8456.10.60; of machines of subheading 8456.91; of machines of 8456.99.10; of machines of subheading 8456.99.70 4.7% Free (A, CA, E, IL, J, MX) 35%
111 STAT. 2936
[Parts and accessories suitable for use:]
 [Other:]
  [For machines of heading 8462 or 8463:]
   [Other:]
    "Bed, base, table, column, cradle, frame, bolster, crown, slide, rod, tailstock and headstock castings, weldments or fabrications:
8466.94.55      Of machines of subheading 8462.21.40 or 8462.29.40 See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8466.94.65      Other 4.7% Free (A, CA, E, IL, J, MX) 35%
    Other:
8466.94.75      Of machines of subheading 8462.21.40 or 8462.29.40 See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8466.94.85      Other 4.7% Free (A, CA, E, IL, J, MX) 35%"
(21). Subheading 8470.10.00 is modified by deleting from the Rates of Duty 1-Special subcolumn the “Free” rate of duty and the symbols and parentheses following such rate, and by deleting from the Rates of Duty 1-General subcolumn the rate “2.6%” and inserting “Free” in lieu thereof. (22). Subheading 8470.40.00 is modified by deleting from the Rates of Duty 1-Special subcolumn the “Free” rate of duty and the symbols and parentheses following such rate, and by deleting from the Rates of Duty 1-General subcolumn the rate “1.6%” and inserting “Free” in lieu thereof. (23). Subheadings 8470.90.00, 8471.49.10, 8473.21.00 and 8473.29.00 are each modified by deleting from the Rates of Duty 1-Special subcolumn the “Free” rate of duty and the symbols and parentheses following such rate, and by deleting from the Rates of Duty 1-General subcolumn the rate “2.7%” and inserting “Free” in lieu thereof. (24). Subheadings 8471.49.15, 8471.49.31, 8471.49.33, 8471.49.35, 8471.49.36, 8471.49.48, 8471.49.50, 8471.49.95, 8471.60.10, 8471.60.51, 8471.60.53, 8471.60.55, 8471.60.56, 8471.60.90, 8471.70.30, 8471.70.90, 8471.80.90 and 8471.90.00 are each modified by deleting from the Rates of Duty 1-Special subcolumn the “Free” rate of duty and the symbols and parentheses following such rate, and by deleting from the Rates of Duty 1-General subcolumn the rate “1.5%” and inserting “Free” in lieu thereof. (25). Subheadings 8471.49.37, 8471.60.57 and 8471.70.50 are each modified by deleting from the Rates of Duty 1-Special subcolumn the “Free” rate of duty and the symbols and parentheses following such rate, and by deleting from the Rates of Duty 1-General subcolumn the rate “1.5%” and inserting “Free" in lieu thereof. (26). Subheadings 8471.49.70 and 8504.40.70 are each modified by deleting from the Rates of Duty 1-Special subcolumn the “Free” rate of duty and the symbols and parentheses following such rate, and by deleting from the Rates of Duty 1- General subcolumn the rate “1.2%” and inserting “Free” in lieu thereof. 111 STAT. 2937 (27). Subheadings 8471.50.40 and 8471.50.80 are superseded by:
[Automatic data processing machines and:]
“8471.50.00  Digital processing units other than those of subheading 8471.41 and 8471.49, whether or not containing in the same housing one or two of the following types of unit: storage units, input units, output units Free 35%"
(28). Subheadings 8472.90.20 and 8472.90.90 are superseded and the following inserted, in numerical sequence, in lieu thereof:
[Other office machines:]
 [Other:]
“8472.90.10   Automatic teller machines Free 35%
8472.90.95   Other See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%"
(29). Subheadings 8473.10.30, 8473.40.20 and 8473.40.90 are superseded and the following inserted, in numerical sequence, in lieu thereof:
[Parts and accessories (other than covers,:]
 [Parts and accessories of the machines of heading 8469:]
  [Parts:]
   "Of word processing machines:
8473.10.20     Printed circuit assemblies See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 45%
8473.10.40     Other See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 45%"
 [Parts and accessories of the machines of heading 8472:]
“8473.40.10    Printed circuit assemblies for automatic teller machines of subheading 8472.90.10 See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8473.40.95    Other See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%"
(30). Subheadings 8477.10.80, 8477.40.00, 8477.59.00, 8477.90.20, 8477.90.40, 8477.90.60 and 8477.90.80 are superseded and the following inserted, in numerical sequence, in lieu thereof:
[Machinery for working rubber or:]
 [Injection-molding machines:]
“8477.10.70   For encapsulation in the assembly of semiconductors See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8477.10.90   Other See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8477.40  Vacuum-molding machines and other thermoforming machines:
8477.40.40   Transfer molding and compression molding machines for encapsulation in the assembly of semiconductors See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8477.40.80   Other See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%"
111 STAT. 2938
[Machinery for working rubber or:]
 [Other machinery for molding or otherwise forming:]
“8477.59   Other:
8477.59.40    Liquid encapsulate molding machines for encapsulation in the assembly of semiconductors See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8477.59.80    Other See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%"
 [Parts:]
  "Base, bed, platen, clamp cylinder, ram, and injection castings, weldments and fabrications:
8477.90.15    Of machines of subheading 8477.10.70, 8477.40.40 or 8477.59.40 See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8477.90.25    Other See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
  Barrel screws:
8477.90.35    Of machines of subheading 8477.10.70, 8477.40.40 or 8477.59.40 See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8477.90.45    Other See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
  Hydraulic assemblies incorporating more than one of the following: manifold; valves; pump; oil cooler:
8477.90.55    Of machines of subheading 8477.10.70, 8477.40.40 or 8477.59.40 See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8477.90.65    Other See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
  Other:
8477.90.75    Of machines of subheading 8477.10.70, 8477.40.40 or 8477.59.40 See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8477.90.85    Other See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%"
111 STAT. 2939 (31). Subheadings 8479.89.95 and 8479.90.95 are superseded and the following inserted, in numerical sequence, in lieu thereof:
[Machines and mechanical appliances having:]
 [Other machines and mechanical appliances:]
  [Other:]
   [Other:]
“8479.89.87     Machines for wet-cleaning flat panel displays See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8479.89.97     Other See section A of Annex II to this proclamation Free (A, B, C, CA, E, IL, J, MX) 35%"
 [Parts:]
“8479.90.93   Of chemical vapor deposition machines for semiconductor production; of machines for cleaning semiconductor wafers; of physical deposition machines for semiconductor production; of die attach machines for assembly of semiconductors; of spinners for coating photographic emulsions on semiconductor wafers; of machines for growing or pulling monocrystal semiconductor boules; of machines for wet-cleaning flat panel displays; of epitaxial deposition machines for semiconductor wafer See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8479.90.97   Other See section A of Annex II to this proclamation Free (A, B, C, CA, E, IL, J, MX) 35%"
(32). Subheading 8480.71.90 is superseded by:
[Molding boxes for metal foundry,:]
 [Molds for rubber or plastics:]
  [Injection or compression types:]
“8480.71.40    For the manufacture of semiconductor devices See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8480.71.80    Other See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%"
(33). The additional U.S. notes to chapter 85 are modified: (a). by deleting “8529.90.86” wherever and inserting “8529.90.88” in lieu thereof. 111 STAT. 2940 (b). by inserting the following new note: “12. For the purposes of subheading 8538.90.10, the expression “articles described in additional U.S. note 12 to chapter 85” means any of the following goods: spin dryers of subheading 8421.19.30; deflash machines of subheading 8424.30 for cleaning or removing contaminants from the metal leads of semiconductor packages prior to electroplating (deflash by projectile beads); spraying appliances of subheading 8424.89.30; machines or appliances of subheading 8424,89.50; automated machinery of subheading 8428.20, 8428.33, 8428.39 or 8428.90 for transport, handling and storage of semiconductor wafers, wafer cassettes, wafer boxes and other materials for semiconductor devices; machines of subheading 8456.10.60; machines of subheading 8456.91; machines of subheading 8456.99.10; machines of subheading 8456.99.70; machines of subheading 8462.21.40 or 8462.29.40; machines of subheading 8464.10 for sawing monocrystal semiconductor boules into slices, or wafers into chips; machines of subheading 8464.20.10; machines of subheading 8464.90.10 or 8464.90.60; deflash machines of subheading 8465.99.40; articles of subheading 8469.11, heading 8470 or heading 8471; automatic teller machines of subheading 8472.90.10; machines of subheading 8477.10.70, 8477.40.40 or 8477.59.40; machines of subheading 8479.89.85 for processing of semiconductor materials or for production and assembly of diodes, transistors and similar semiconductor devices and electronic integrated circuits; machines of subheading 8479.89.87; furnaces and ovens of subheading 8514.10 or 8514.20 for the manufacture of semiconductor devices on semiconductor wafers; furnaces and ovens of subheading 8514.30.60; die attach apparatus, tape automated bonders and wire bonders of subheading 8515.80 for assembly of semiconductors; articles of heading 8517; articles of subheading 8520.20; transmission apparatus of subheading 8525.10.10 or 8525.10.90; articles of subheading 8525.20; digital still image video cameras of subheading 8525.40.40; articles of subheading 8527.90.40; paging receivers of subheading 8527.90.85; ion implanters of subheading 8543.11 designed for doping semiconductor materials; articles of subheading 8543.89.92; photocopying apparatus of subheading 9009.11 or 9009.21; apparatus of subheading 9010.41, 9010.42 or 9010.49; apparatus of subheading 9010.50.60 for the projection or drawing of circuit patterns on flat panel displays; plotters of subheading 9017.10.40 or 9017.20.70; pattern generating apparatus of subheading 9017.20.50; instruments and apparatus of heading 9026; instruments and apparatus of heading 9027 except of subheading 9027.10, 9027.40 or 9027.90.20; instruments and apparatus of subheading 9030.40; instruments and apparatus of subheading 9030.82; optical instruments and appliances of subheading 9031.41; optical instruments and appliances of subheading 9031.49.70; articles of subheading 9031.80.40." (34). The article description for heading 8504 is modified by deleting the expression “inductors; power supplies for automatic data processing machines or units thereof of heading 8471; parts” and inserting “inductors; parts” in lieu thereof. (35). The article description for subheading 8504.40 is modified by deleting the expression “converters; power supplies for automatic data processing machines or units thereof of heading 8471:” and inserting “converters:” in lieu thereof. (36). Subheadings 8504.40.90, 8504.50.00 and 8504.90.70 are superseded and the following inserted, in numerical sequence, in lieu thereof:
[Electrical transformers, static:]
 [Static converters:]
“8504.40.85   For telecommunication apparatus Free 35%
8504.40.95   Other See section A of Annex II to this proclamation Free (A, B, C, CA, E, IL, J, MX) 35%"
8504.50  Other inductors:
8504.50.40   For power supplies for automatic data processing machines and units thereof of heading 8471; for telecommunication apparatus See section A of Annex II to this proclamation Free (A, B, C, E, IL, J, MX) 35%
0.3% (CA)
8504.50.80   Other See section A of Annex II to this proclamation Free (A, B, C, E, IL, J, MX) 35%"
0.3% (CA)
111 STAT. 2941
[Electrical transformers, static:]
 [Parts:]
  [Other:]
   "Printed circuit assemblies:
8504.90.65     Of the goods of subheading 8504.40 or 8504.50 for telecommunication apparatus See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8504.90.75     Other See section A of Annex II to this proclamation Free (A, B, C, CA, E, IL, J, MX) 35%"
(37). Subheadings 8514.10.00, 8514.20.00, 8514.30.40 and 8514.90.00 are superseded and the following inserted, in numerical sequence, in lieu thereof:
[Industrial or laboratory electric:]
“8514.10  Resistance heated furnaces and ovens:
8514.10.40   For the manufacture of semiconductor devices on semiconductor wafers See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8514.10.80   Other See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8514.20  Induction or dielectric furnaces and ovens:
8514.20.40   For the manufacture of semiconductor devices on semiconductor wafers See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8514.20.80   Other See section A of Annex II to this proclamation Free (A, B, C, CA, E, IL, J, MX) 35%"
 [Other furnaces and ovens:]
  "Other:
8514.30.60    For rapid heating of semiconductor wafers See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8514.30.80    Other See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8514.90  Parts:
8514.90.40   Of articles of subheading 8514.10.40, 8514.20.40 or subheading 8514.30.60 See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8514.90.80   Other See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%"
(38). Subheadings 8515.80.00 and 8515.90.20 are superseded by:
[Electric (including electrically:]
“8515.80  Other machines and apparatus:
8515.80.40   Die attach apparatus, tape automated bonders and wire bonders for assembly of semiconductors See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8515.80.80   Other See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%"
111 STAT. 2942
[Electric (including electrically:]
 [Parts:]
  "Of welding machines and apparatus:
8515.90.10    Of die attach apparatus, tape automated bonders and wire bonders of subheading 8515.80 for assembly of semiconductors See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8515.90.30    Other See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%"
(39). Subheadings 8518.10.00, 8518.29.00, 8518.90.10 and 8518.90.30 are superseded and the following inserted, in numerical sequence, in lieu thereof:
[Microphones and stands therefor,:]
“8518.10  Microphones and stands therefor:
8518.10.40   Microphones having a frequency range of 300 Hz to 3.4 kHz with a diameter of not exceeding 10 mm and a height not exceeding 3 mm, for telecommunication use See section A of Annex II to this proclamation Free (A, B, C, E, IL, J, MX) 35%
0.4% (CA)
8518.10.80   Other See section A of Annex II to this proclamation Free (A, B, C, E, IL, J, MX) 35%"
0.4% (CA)
 [Loudspeakers, whether or not mounted in their enclosures:]
“8518.29   Other:
8518.29.40    Without housing, having a frequency range of 300 Hz to 3.4 kHz with a diameter of not exceeding 50 mm, for telecommunication use See section A of Annex II to this proclamation Free (A, B, C, E, IL, J, MX) 35%
0.4% (CA)
8518.29.80    Other See section A of Annex II to this proclamation Free (A, B, C, E, IL, J, MX) 35%"
0.4% (CA)
 [Parts:]
  "Of line telephone handsets of subheading 8518.30.10; of repeaters of subheading 8518.40.10:
8518.90.20    Printed circuit assemblies of line telephone handsets; parts of repeaters See section A of Annex II to this proclamation Free (A, B, CA, E, IL, J, MX) 35%
8518.90.40    Other See section A of Annex II to this proclamation Free (A, B, CA, E, IL, J, MX) 35%
  Other:
8518.90.60    Printed circuit assemblies of the articles of subheading 8518.10.40 or 8518.29.40 See section A of Annex II to this proclamation Free (A, B, CA, E, IL, J, MX) 35%
8518.90.80    Other 4.9% Free (A, B, CA, E, IL, J, MX) 35%"
(40). The article description for subheading 8518.30.10 is modified by deleting such description and inserting “Line telephone handsets” in lieu thereof. 111 STAT. 2943 (41). Subheadings 8523.12.00 and 8523.13.00 are each modified by deleting from the Rates of Duty 1-Special subcolumn both the “Free” rate of duty and the symbols and parentheses following such rate and the “0.4% (CA)” rate of duty from such subcolumn, and by deleting from the Rates of Duty 1-General subcolumn the rate “1.7%” and inserting “Free” in lieu thereof. (42). Subheadings 8524.39.00 and 8524.99.40 are superseded and the following inserted, in numerical sequence, in lieu thereof:
[Records, tapes and other recorded media:]
 [Discs for laser reading systems:]
“8524.39   Other:
8524.39.40    For reproducing representations of instructions, data, sound, and image, recorded in a machine readable binary form, and capable of being manipulated or providing interactivity to a user, by means of an automatic data processing machine; proprietary format recorded discs See section A of Annex II to this proclamation Free (A, E, IL, J, MX) 80%
0.5% (CA)
8524.39.80    Other See section A of Annex II to this proclamation Free (A, E, IL, J, MX) 80%"
0.5% (CA)
 [Other:]
  [Other:]
   "Other:
8524.99.60     For reproducing representations of instructions, data, sound, and image, recorded in a machine readable binary form, and capable of being manipulated or providing interactivity to a user, by means of an automatic data processing machine; proprietary format recorded media See section A of Annex II to this proclamation Free (A*, E, IL, J, MX) 86.1¢/m2 of recording surface
0.9¢/m2 of recording surface (CA)
8524.99.90     Other See section A of Annex II to this proclamation Free (A*, E, IL, J, MX) 86.1¢/m2 of recording surface"
0.9¢/m2 of recording surface (CA)
(43). Subheadings 8525.10.20, 8525.10.60, 8525.10.80 and 8525.40.00 are superseded and the following inserted, in numerical sequence, in lieu thereof:
[Transmission apparatus for:]
 [Transmission apparatus:]
  "Television:
8525.10.10    Set top boxes which have a communication function See section A of Annex II to this proclamation Free (A+, B, CA, E, IL, J, MX) 35%
8525.10.30    Other See section A of Annex II to this proclamation Free (A+, B, CA, E, IL, J, MX) 35%"
 [Other:]
  [Other:]
“8525.10.70    For radiobroadcasting See section A of Annex II to this proclamation Free (A, B, C, CA, E, IL, J, MX) 35%
8525.10.90    Other See section A of Annex II to this proclamation Free (A, B, C, CA, E, IL, J, MX) 35%"
111 STAT. 2944
[Transmission apparatus for:]
“8525.40  Still image video cameras and other video camera recorders:
8525.40. 40   Digital still image video cameras See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%
8525.40. 80   Other See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 35%"
(44). Subheadings 8525.20.90 and 8529.90.99 are each modified by deleting from the Rates of Duty 1-Special subcolumn the “Free” rate of duty and the symbols and parentheses following such rate, and by deleting from the Rates of Duty 1- General subcolumn the rate “2.4%” and inserting “Free" in lieu thereof. (45). Subheading 8527.90.40 is modified by deleting from the Rates of Duty 1- Special subcolumn the “Free” rate of duty and the symbols and parentheses following such rate, and by deleting from the Rates of Duty 1-General subcolumn the rate “2%” and inserting “Free” in lieu thereof. (46). Subheading 8527.90.90 is superseded by:
[Reception apparatus for radiotelephony:]
 [Other apparatus:]
  [Other:]
   "Other:
8527.90.85     Paging receivers See section A of Annex II to this proclamation Free (A, B, C, CA, E, IL, J, MX) 35%
8527.90.95     Other See section A of Annex II to this proclamation Free (A, B, C, CA, E, IL, J, MX) 35%"
(47). Subheading 8528.12.88 is superseded by:
[Reception apparatus for television, whether:]
 [Reception apparatus for television:]
  [Color:]
   [Other:]
    [Other:]
     "Other:
8528.12.92       Set top boxes which have a communications function See section A of Annex II to this proclamation Free (A+, B, E, IL, J, MX) 35%
0.5% (CA)
8528.12.96       Other See section A of Annex II to this proclamation Free (A+, B, E, IL, J, MX) 35%"
0.5% (CA)
(48). Subheading 8529.10.40 is modified by deleting from the Rates of Duty 1-Special subcolumn the “Free” rate of duty and the symbols and parentheses following such rate, and by deleting from the Rates of Duty 1-General subcolumn the rate “3.4%” and inserting “Free” in lieu thereof. 111 STAT. 2945 (49). Subheadings 8529.10.60, 8529.90.23, 8529.90.76 and 8529.90.85 are superseded and the following inserted, in numerical sequence, in lieu thereof:
[Parts suitable for use solely or:]
 [Antennas and antenna reflectors:]
  "Other:
8529.10.70    Antennas and antenna reflectors of a kind used with apparatus for radiotelephony and radiotelegraphy See section A of Annex II to this proclamation Free (A, B, C, CA, E, IL, J, MX) 35%
8529.10.90    Other See section A of Annex II to this proclamation Free (A, B, C, CA, E, IL, J, MX) 35%"
 [Other:]
  [Printed circuit assemblies:]
“8529.90.22    Of articles of subheading 8525.10.90, 8525.20, 8525.40.40, 8527.90.40 or 8527.90.85 Free 35%
8529.90.24    Other See section A of Annex II to this proclamation Free (A, B, C, CA, E, IL, J, MX) 35%"
  [Other, parts of printed circuit assemblies, including:]
“8529.90.74    Of articles of subheading 8525.10.90, 8525.20, 8525.40.40, 8527.90.40 or 8527.90.85 See section A of Annex II to this proclamation Free (A, B, CA, E, IL, J, MX) 35%
8529.90.77    Other See section A of Annex II to this proclamation Free (A, B, CA, E, IL, J, MX) 35%"
  [Other parts of articles of headings 8525 and 8527, except:]
“8529.90.84    Of articles of subheading 8525.10.90, 8525.20, 8525.40.40, 8527.90.40 or 8527.90.85 See section A of Annex II to this proclamation Free (A, B, CA, E, IL, J, MX) 35%
8529.90.87    Other See section A of Annex II to this proclamation Free (A, B, CA, E, IL, J, MX) 35%"
(50). Subheading 8529.90.86 is renumbered as 8529.90.88. (51). Subheadings 8531.80.80, 8531.90.40 and 8531.90.80 are superseded and the following inserted, numerical sequence, in lieu thereof:
[Electric sound or visual signaling:]
 [Other apparatus:]
  "Other:
8531.80.70    Flat panel displays of paging alert devices of subheading 8531.80.40 See section A of Annex II to this proclamation Free (A, B, C, CA, E, IL, J, MX) 35%
8531.80.90    Other See section A of Annex II to this proclamation Free (A, B, C, CA, E, IL, J, MX) 35%"
111 STAT. 2946
[Electric sound or visual signaling:]
 [Parts:]
  "Printed circuit assemblies:
8531.90.10    Of the panels of subheading 8531.20; of paging alert devices or of flat panel displays for paging alert devices of subheading 8531.80 See section A of Annex II to this proclamation Free (A, B, CA, E, IL, J, MX) 35%
8531.90.30    Other See section A of Annex II to this proclamation Free (A, B, CA, E, IL, J, MX) 35%
  Other:
8531.90.70    Of the panels of subheading 8531.20; of paging alert devices or of flat panel displays for paging alert devices of subheading 8531.80 Free 35%
8531.90.90    Other See section A of Annex II to this proclamation Free (A, B, CA, E, IL, J, MX) 35%"
(52). The article description for subheading 8532.21.00 is modified by deleting such description and inserting “Tantalum” in lieu thereof. (53). Subheadings 8536.50.80, 8536.69.00 and 8536.90.00 are superseded and the following inserted, in numerical sequence, in lieu thereof:
[Electric apparatus for switching or:]
 [Other switches:]
  "Other:
8536.50.70    Electronic AC switches consisting of optically coupled input and output circuits (insulated thyristor AC switches); electronic switches, including temperature protected switches, consisting of a transistor and a logic chip (chip-on-chip technology); electromechanical snap-action switches for a current not exceeding 11 amps See section A of Annex II to this proclamation Free (A, B, E, IL, J, MX) 35%
0.5% (CA)
8536.50.90    Other See section A of Annex II to this proclamation Free (A, B, E, IL, J, MX) 35%"
0.5% (CA)
 [Lamp-holders, plugs and sockets:]
“8536.69   Other:
8536.69.40    Coaxial connectors; cylindrical multicontact connectors; rack and panel connectors; printed circuit connectors; ribbon or flat cable connectors See section A of Annex II to this proclamation Free (A, B, E, IL, J, MX) 35%
0.5% (CA)
8536.69.80    Other See section A of Annex II to this proclamation Free (A, B, E, IL, J, MX) 35%"
0.5% (CA)
111 STAT. 2947
[Electric apparatus for switching or:]
“8536.90  Other apparatus:
8536.90.40   Terminals, electrical splices and electrical couplings; wafer probers See section A of Annex II to this proclamation Free (A*, B, E, IL, J, MX) 35%
0.5% (CA)
8536.90.80   Other See section A of Annex II to this proclamation Free (A*, B, E, IL, J, MX) 35%"
0.5% (CA)
(54). Subheading 8538.90.20 is superseded by:
[Parts suitable for use solely or principally:]
 [Other:]
  "Printed circuit assemblies: See section A of Annex II to this proclamation
8538.90.10    Of an article of heading 8537 for one of the articles described in additional U.S. note 12 to chapter 85 See section A of Annex II to this proclamation Free (A, B, E, IL, J, MX) 35%"
0.5% (CA)
8538.90.30    Other See section A of Annex II to this proclamation Free (A, B, E, IL, J, MX) 35%"
0.5% (CA)
(55). Subheadings 8543.89.90, 8543.90.55 and 8543.90.75 are superseded and the following inserted, in numerical sequence, in lieu thereof:
[Electrical machines and apparatus, having:]
 [Other machines and apparatus:]
  [Other:]
   [Other:]
    [Other:]
“8543.89.92      Electrical machines with translation or dictionary functions; flat panel displays other than for articles of heading 8528 See section A of Annex II to this proclamation Free (A, B, CA, E, IL, J, MX) 35%
8543.89.96      Other See section A of Annex II to this proclamation Free (A, B, CA, E, IL, J, MX) 35%"
 [Parts:]
  [Other:]
   "Printed circuit assemblies:
8543.90.64     Of ion implanters of subheading 8543.11; of flat panel displays other than for articles of heading 8528 See section A of Annex II to this proclamation Free (A, B, CA, E, IL, J, MX) 35%
8543.90.68     Other See section A of Annex II to this proclamation Free (A, B, CA, E, IL, J, MX) 35%
   Other:
8543.90.88     Other See section A of Annex II to this proclamation Free (A, B, CA, E, IL, J, MX) 35%"
111 STAT. 2948 (56). Subheadings 8544.41.00, 8544.49.00 and 8544.51.80 are superseded and the following inserted, in numerical sequence, in lieu thereof:
[Insulated (including enameled or:]
 [Other electrical conductors, for a voltage not exceeding 80 V:]
“8544.41   Fitted with connectors:
8544.41.40    Of a kind used for telecommunications See section A of Annex II to this proclamation Free (A, B, E, IL, J, MX) 35%
0.5% (CA)
8544.41.80    Other See section A of Annex II to this proclamation Free (A, B, E, IL, J, MX) 35%
0.5% (CA)
8544.49   Other:
8544.49.40    Of a kind used for telecommunications See section A of Annex II to this proclamation Free (A, B, E, IL, J, MX) 40%
0.5% (CA)
8544.49.80    Other See section A of Annex II to this proclamation Free (A, B, E, IL, J, MX) 40%"
0.5% (CA)
 [Other electrical conductors, for a voltage exceeding 80 V but not exceeding 1,000 V:]
  [Fitted with connectors:]
   "Other:
8544.51.70     Of a kind used for telecommunications See section A of Annex II to this proclamation Free (A, B, E, IL, J) 35%
0.5% (CA)
3.1% (MX)
8544.51.90     Other See section A of Annex II to this proclamation Free (A, B, E, IL, J) 35%"
0.5% (CA)
3.1% (MX)
(57). Subheadings 9009.90.30 and 9009.90.70 are each modified by deleting from the Rates of Duty 1-Special subcolumn the “Free” rate of duty and the symbols and parentheses following such rate, and by deleting from the Rates of Duty 1- General subcolumn the rate “2.6%” and inserting “Free” in lieu thereof. (58). Subheading 9010.90.80 is superseded by:
[Apparatus and equipment for photographic:]
 [Parts and accessories:]
  "Other:
9010.90.70    Of apparatus of subheadings 9010.41 to 9010.49; of apparatus of subheading 9010.50.60 for the projection or drawing of circuit patterns on flat panel displays See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 45%
9010.90.90    Other See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 45%"
111 STAT. 2949 (59). Subheadings 9013.80.60 and 9013.90.40 are superseded and the following inserted, in numerical sequence, in lieu thereof:
[Liquid crystal devices not:]
 [Other devices, appliances and:]
“9013.80.70   Flat panel displays other than for articles of heading 8528 See section A of Annex II to this proclamation Free (A, E, IL, J, MX) 45%
0.9% (CA)
9013.80.90   Other See section A of Annex II to this proclamation Free (A, E, IL, J, MX) 45%"
0.9% (CA)
 [Parts and accessories:]
“9013.90.50   Of flat panel displays other than for articles of heading 8528 See section A of Annex II to this proclamation Free (A, E, IL, J, MX) 45%
0.9% (CA)
9013.90.90   Other See section A of Annex II to this proclamation Free (A, E, IL, J, MX) 45%"
0.9% (CA)
(60). Subheadings 9017.10.00 and 9017.20.90 are superseded and the following inserted, in numerical sequence, in lieu thereof:
[Drawing, marking-out or mathematical:]
“9017.10  Drafting tables and machines, whether or not automatic:
9017.10.40   Plotters See section A of Annex II to this proclamation Free (A, E, IL, J, MX) 45%
0.4% (CA)
9017.10.80   Other See section A of Annex II to this proclamation Free (A, E, IL, J, MX) 45%"
0.4% (CA)
 [Other drawing, marking-out or:]
“9017.20.70   Plotters See section A of Annex II to this proclamation Free (A, E, IL, J, MX) 45%
0.5% (CA)
9017.20.80   Other See section A of Annex II to this proclamation Free (A, E, IL, J, MX) 45%"
0.5% (CA)
(61). Subheadings 9026.10.20, 9026.20.40, 9026.80.20, 9027.30.40, 9027.50.40, 9027.80.25, 9027.80.45 and 9030.40.00 are each modified by deleting from the Rates of Duty 1-Special subcolumn the “Free” rate of duty and the symbols and parentheses following such rate, and by deleting from the Rates of Duty 1-General subcolumn the rate “3%” and inserting “Free” in lieu thereof. (62). Subheadings 9026.10.60, 9026.20.80, 9026.80.60 and 9026.90.60 are each modified by deleting from the Rates of Duty 1-Special subcolumn the “Free" rate of duty and the symbols and parentheses following such rate, and by deleting from the Rates of Duty 1-General subcolumn the rate “2.8%” and inserting “Free” in lieu thereof. 111 STAT. 2950 (63). Subheadings 9027.20.42 (and the immediately preceding text “Electrical:”), 9027.20.44, 9027.90.42, 9027.90.45 (and the immediately preceding text “Other:”), 9027.90.55, 9027.90.60 and 9027.90.80 are superseded and the following inserted, in numerical sequence, in lieu thereof:
[Instruments and apparatus for physical:]
 [Chromatographs and electrophoresis:]
“9027.20.50   Electrical Free 40%"
  [Microtomes; parts and accessories:]
  [Parts and accessories:]
   [Of electrical instruments and apparatus:]
“9027.90.45     Printed circuit assemblies for the goods of subheading 9027.80 Free 40%
    Other:
9027.90.54      Of instruments and apparatus of subheading 9027.20, 9027.30, 9027.40, 9027.50 or 9027.80 Free 40%
9027.90.58      Other See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 40%"
   [Other:]
    "Of optical instruments and apparatus:
9027.90.64      Of instruments and apparatus of subheading 9027.20, 9027.30, 9027.40, 9027.50 or 9027.80 See section A of Annex II to this proclamation Free (A, E, IL, J, MX) 50%
1% (CA)
9027.90.68      Other See section A of Annex II to this proclamation Free (A, E, IL, J, MX) 50%
1% (CA)
    Other:
9027.90.84      Of instruments and apparatus of subheading 9027.20, 9027.30, 9027.40, 9027.50 or 9027.80 See section A of Annex II to this proclamation Free (A, E, IL, J, MX) 40%
0.6% (CA)
9027.90.88      Other See section A of Annex II to this proclamation Free (A, E, IL, J, MX) 40%"
0.6% (CA)
(64). Subheadings 9030.90.65 and 9030.90.85 are superseded by:
[Oscilloscopes, spectrum analyzers and:]
 [Parts and accessories:]
  [Other:]
   "Printed circuit assemblies:
9030.90.64     Of instruments and apparatus of subheading 9030.82 See section A of Annex II to this proclamation Free (A, B, C, E, IL, J, MX) 40%
0.4% (CA)
9030.90.68    Other See section A of Annex II to this proclamation Free (A, B, C, E, IL, J, MX) 40%"
0.4% (CA)
111 STAT. 2951
[Oscilloscopes, spectrum analyzers and:]
 [Parts and accessories:]
  [Other:]
   "Other:
9030.90.84     Of instruments and apparatus of subheading 9030.82 See section A of Annex II to this proclamation Free (A, B, C, E, IL, J, MX) 40%
0.4% (CA)
9030.90.88     Other See section A of Annex II to this proclamation Free (A, B, C, E, IL, J, MX) 40%"
0.4% (CA)
(65). Subheadings 9031.49.80, 9031.80.00, 9031.90.55 and 9031.90.60 are superseded and the following inserted, in numerical sequence, in lieu thereof:
[Measuring or checking instruments,:]
 [Other optical instruments and appliances:]
  [Other:]
“9031.49.70    For inspecting masks (other than photomasks) used in manufacturing semiconductor devices; for measuring surface particulate contamination on semiconductor devices See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 50%
9031.49.90    Other See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 50%
9031.80  Other instruments, appliances and machines:
9031.80.40   Electron beam microscopes fitted with equipment specifically designed for the handling and transport of semiconductor wafers or reticles See section A of Annex II to this proclamation Free (A, E, IL, J, MX) 40%
0.4% (CA)
9031.80.80   Other See section A of Annex II to this proclamation Free (A, B, C, E, IL, J, MX) 40%"
0.4% (CA)
 [Parts and accessories:]
  [Of other optical instruments:]
“9031.90.54    Of optical instruments and appliances of subheading 9031.41 or 9031.49.70 See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 50%
9031.90.58    Other See section A of Annex II to this proclamation Free (A, CA, E, IL, J, MX) 50%
  Other:
9031.90.70    Of articles of subheading 9031.80.40 See section A of Annex II to this proclamation Free (A, E, IL, J, MX) 40%
0.4% (CA)
9031.90.90    Other See section A of Annex II to this proclamation Free (A, B, C, E, IL, J, MX) 40%"
0.4% (CA)
(66). Subchapter X to chapter 98 is modified by deleting from subdivision (a)(xiii) of U.S. note 6 to such subchapter “8424.90.90” and inserting “8424.90.80” in lieu thereof. 111 STAT. 2952 (67). Subchapter XVII to chapter 98 is modified: (a). by deleting from subdivision (u) of U.S. note 2 to such subchapter “8543.89.90,” and inserting “8543.89.92, 8543.89.96,” in lieu thereof. (b). by deleting from the article description of heading 9817.84.01 “8479.89.95” and inserting “8479.89.97” in lieu thereof. (68). Subheading 9902.84.77 is deleted. (69). The article description of subheadings 9903.41.40 and 9903.41.45 are each modified by deleting “8528.12.88” and inserting “8528.12.96” in lieu thereof. (70). Subchapter V to chapter 99 is modified: (a). by deleting subheading 9905.85.62. (b). by deleting “8536.90.00” from the article descriptions of subheadings 9905.85.68 and 9905.85.71 wherever it appears and inserting “8536.90” in lieu thereof. (c). by deleting “8536.69.00” from the article descriptions of subheadings 9905.85.71 and 9905.85.79 wherever it appears and inserting “8536.69” in lieu thereof. (d). by deleting “8544.41.00, 8544.51.80” from the article description of subheading 9905.85.82 and inserting “8544.41, 8544.51.70, 8544.51.90” in lieu thereof. (e). by deleting “8544.41.00” from the article description of subheading 9905.85.83 and inserting “8544.41” in lieu thereof. (f). by deleting “9030.90.65 or 9030.90.85” from the article description of subheadings 9905.90.05 and 9905.90.10 and inserting “9030.90.68 or 9030.90.88” in lieu thereof. (g). by deleting “9027.90.60 or 9027.90.80” from the article description of subheading 9905.90.11 and inserting “9027.90.64, 9027.90.68, 9027.90.84 or 9027.90.88” in lieu thereof. (h). by deleting “9031.90.60” from the article description of subheading 9905.90.15 and inserting “9031.90.90” in lieu thereof. (71). Subchapter VII to chapter 99 of the HTS is modified by deleting subheading 9907.84.15.
Section C. Effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after January 1, 1999. (1). General note 4(d) is modified by deleting “8524.99.60 Argentina” and “8524.99.90 Argentina”. (2). The tariff classification rules (“TCRs”) of subdivision (t) of general note 12 are modified as follows: (a). TCR 77, 79, 79A, 80(C), 82, 83 and 94 for chapter 85 are each modified by deleting from such rule “8529.90.19, 8529.90.22 or 8529.90.24” and inserting “8529.90.19 or 8529.90.23” in lieu thereof. (b). TCR 84, 92A, 92B and 92K for chapter 85 are each modified by deleting from such rule “8529.90.22, 8529.90.24" and inserting “8529.90.23" in lieu thereof. 111 STAT. 2953 (c). TCR 99 for chapter 85 is modified by deleting from such rule “8529.90.73, 8529.90.74 or 8529.90.77” and inserting “8529.90.73 or 8529.90.76” in lieu thereof. (d). TCR 100(A) and 100(B) for chapter 85 are each modified by deleting from such rule “8529.90.83, 8529.90.84 or 8529.90.87” and inserting “8529.90.83 or 8529.90.85” in lieu thereof. (3). The additional U.S. notes to chapter 84 are modified: (a). by deleting “8479.90.97" from additional U.S. note 1 and inserting “8479.90.95" in lieu thereof. (b). by deleting “, 8466.30.20 and 8466.30.40" from additional U.S. note 3 and inserting “and 8466.30.45" in lieu thereof. (4). Subheadings 8421.91.70 and 8421.91.90 are superseded by:
[Centrifuges, including centrifugal:]
 [Parts:]
  [Of centrifuges,:]
“8421.91.60    Other Free 25%"
(5). Subheadings 8424.30.40, 8424.30.80, 8424.90.60 and 8424.90.80 are superseded and the following inserted, in numerical sequence, in lieu thereof:
[Mechanical appliances (whether or:]
 [Steam or sand blasting:]
“8424.30.90   Other Free 35%"
 [Parts:]
“8424.90.90   Other Free 35%"
(6). Subheadings 8428.20, 8428.20.40, 8428.20.80, 8428.33, 8428.33.40, 8428.33.80, 8428.39, 8428.39.40, 8428.39.80, 8428.90, 8428.90.40 and 8428.90.80 are superseded and the following inserted, in numerical sequence, in lieu thereof:
[Other lifting, handling, loading or:]
“8428.20.00  Pneumatic elevators and conveyors Free 35%"
  [Other continuous-action elevators:]
“8428.33.00   Other, belt type Free 35%
8428.39.00   Other Free 35%
8428.90.00  Other machinery Free 35%"
(7). Subheadings 8431.39, 8431.39.40 and 8431.39.80 are superseded by:
[Parts suitable for use solely or principally with the machinery of headings 8425 to 8430:]
 [Of machinery of heading 8428:]
“8431.39.00   Other Free 35%"
(8). Subheadings 8466.30.20 (and the immediately preceding text “For the machines described in additional U.S. note 3 to chapter 84:”), 8466.30.40, 8466.91.40 (and the immediately preceding text “Other:”) and 8466.91.80 are superseded and the following inserted, in numerical sequence, in lieu thereof:
[Parts and accessories suitable for use:]
 [Dividing heads and other special:]
  [Other special attachments:]
“8466.30.45    For the machines described in additional U.S. note 3 to chapter 84 Free 45%"
 [Other:]
  [For machines of headings 8464:]
“8466.91.50    Other Free 35%"
(9). Subheadings 8479.90.93 and 8479.90.97 are superseded by:
[Machines and mechanical appliances having:]
 [Parts:]
“8479.90.95   Other Free 35%"
111 STAT. 2954 (10). Subheadings 8514.10, 8514.10.40, 8514.10.80, 8514.20, 8514.20.40, 8514.20.80, 8514.90, 8514.90.40 and 8514.90.80 are superseded and the following inserted, in numerical sequence, in lieu thereof:
[Industrial or laboratory electric:]
“8514.10.00  Resistance heated furnaces and ovens Free 35%
8514.20.00  Induction or dielectric furnaces and ovens Free 35%
8514.90.00  Parts Free 35%"
(11). Subheadings 8515.80, 8515.80.40 and 8515.80.80 are superseded by:
[Electric (including electrically:]
“8515.80.00  Other machines and apparatus Free 35%"
(12). Subheadings 8524.99.60 (and the immediately preceding text “Other:”) and 8524.99.90 are superseded by:
[Records, tapes and other recorded media:]
 [Other:]
  [Other:]
“8524.99.40    Other Free 86.1¢/m2 of recording surface"
(13). Subheadings 8525.20.24 (and the immediately preceding text “Low-power radiotelephonic transceivers operating on frequencies from 49.82 to 49.90 MHz:”) and 8525.20.28 are superseded by:
[Transmission apparatus for:]
 [Transceivers:]
“8525.20.20   Low-power radiotelephonic transceivers operating on frequencies from 49.82 to 49.90 MHz Free 35%"
(14). Subheadings 8529.90.22, 8529.90.24, 8529.90.74, 8529.90.77, 8529.90.84 and 8529.90.87 are superseded and the following inserted, in numerical sequence, in lieu thereof:
[Parts suitable for use solely or:]
 [Other:]
  [Printed circuit assemblies:]
“8529.90.23    Other Free 35%"
  [Other, parts of printed circuit assemblies, including:]
“8529.90.76    Other Free 35%"
  [Other parts of articles of headings 8525 and 8527, except:]
“8529.90.85    Other Free 35%"
(15). Subchapter X to chapter 98 is modified by deleting from subdivision (a)(xiii) of U.S. note 6 to such subchapter “8424.90.80” and inserting “8424.90.90” in lieu thereof.
111 STAT. 2955 Annex II Staged Rate Modifications to the Harmonized Tariff Schedule of the United States ("HTS")
Section A. For the following provisions, the Rates of Duty 1-General subcolumn of the Harmonized Tariff Schedule of the United States ("HTS") is modified on the dates set forth in the table below by deleting the existing rate of duty from the enumerated provision and inserting in lieu thereof the rate of duty specified for such date.
1/For subheadings 2208.40.40 and 2208.40.80, the rates of duty after 2000 will be as follows:
 On or after January 1, 2001-- 8.7¢/pf. liter;
 On or after January 1, 2002-- 4.3¢/pf. liter;
 On or after January 1, 2003-- Free.
HTS Subheading July 1, 1997 January 1, 1998 January 1, 1999 January 1, 2000
2208.20.10 6.9¢/pf. liter 4.6¢/pf. liter 2.3¢/pf. liter Free
2208.20.20 47.2¢/pf. liter 31.5¢/pf. liter 15.7¢/pf. liter Free
2208.20.30 17.4¢/pf. liter 11.5¢/pf. liter 5.7¢/pf. liter Free
2208.20.40 6.9¢/pf. liter 4.6¢/pf. liter 2.3¢/pf. liter Free
2208.20.50 6.9¢/pf. liter 4.6¢/pf. liter 2.3¢/pf. liter Free
2208.20.60 5.5¢/pf. liter 3.7¢/pf. liter 1.9¢/pf. liter Free
2208.30.30 2.8¢/pf. liter 1.8¢/pf. liter 0.9¢/pf. liter Free
2208.30.60 3.4¢/pf. liter 2.3¢/pf. liter 1.2¢/pf. liter Free
2208.40.20 30.4¢/pf. liter 28.1¢/pf. liter 25.9¢/pf. liter 23.7¢/pf. liter
2208.40.40 26.1¢/pf. liter 21.7¢/pf. liter 17.4¢/pf. liter 13¢/pf. liter1/
2208.40.60 30.4¢/pf. liter 28.1¢/pf. liter 25.9¢/pf. liter 23.7¢/pf. liter
2208.40.80 26.1¢/pf. liter 21.7¢/pf. liter 17.4¢/pf. liter 13¢/pf. liter1/
2208.50.00 8.1¢/pf. liter 5.4¢/pf. liter 2.7¢/pf. liter Free
2208.60.10 41.6¢/pf. liter 27.7¢/pf. liter 13.9¢/pf. liter Free
2208.60.20 8.1¢/pf. liter 5.4¢/pf. liter 2.7¢/pf. liter Free
2208.60.50 20.3¢/pf. liter 13.6¢/pf. liter 6.8¢/pf. liter Free
2208.70.00 8.1¢/pf. liter 5.4¢/pf. liter 2.7¢/pf. liter Free
2208.90.01 6.8¢/pf. liter 4.6¢/pf. liter 2.3¢/pf. liter Free
2208.90.05 6.2¢/pf. liter 4.1¢/pf. liter 2¢/pf. liter Free
2208.90.10 8.1¢/pf. liter 5.4¢/pf. liter 2.7¢/pf. liter Free
2208.90.12 17.3¢/pf. liter 11.6¢/pf. liter 5.8¢/pf. liter Free
2208.90.14 6.9¢/pf. liter 4.6¢/pf. liter 2.3¢/pf. liter Free
2208.90.15 6.9¢/pf. liter 4.6¢/pf. liter 2.3¢/pf. liter Free
2208.90.20 47.2¢/pf. liter 31.4¢/pf. liter 15.7¢/pf. liter Free
2208.90.25 17.3¢/pf. liter 11.6¢/pf. liter 5.8¢/pf. liter Free
2208.90.30 6.9¢/pf. liter 4.6¢/pf. liter 2.3¢C/pf. liter Free
2208.90.35 6.9¢/pf. liter 4.6¢/pf. liter 2.3¢/pf. liter Free
2208.90.40 5.6¢/pf. liter 3.7¢/pf. liter 1.8¢/pf. liter Free
2208.90.46 8.1¢/pf. liter 5.4¢/pf. liter 2.7¢/pf. liter Free
2208.90.71 94¢/pf. liter 63¢/pf. liter 31¢/pf. liter Free
2208.90.75 41.6¢/pf. liter 27.7¢/pf. liter 13.8¢/pf. liter Free
7017.10.30 3.8% 2.6% 1.3% Free
7017.10.60 5.1% 4.8% 4.6% 4.6%
7020.00.30 4.2% 2.8% 1.4% Free
7020.00.60 5.6% 5.3% 5% 5%
8421.19.30 1.7% 1.2% 0.5% Free
8421.19.90 2.3% 1.8% 1.3% 1.3%
8421.91.70 1% 0.5% Free Free
8421.91.90 1.6% 0.8% Free Free
111 STAT. 2956
HTS Subheading July 1, 1997 January 1, 1998 January 1, 1999 January 1, 2000
8424.30.40 1% 0.5% Free Free
8424.30.80 1.5% 0.7% Free Free
8424.89.50 2% 1.3% 0.7% Free
8424.89.70 2.6% 2.2% 1.8% 1.8%
8424.90.60 1% 0.5% Free Free
8424.90.80 1.5% 0.7% Free Free
8428.20.40 0.5% 0.3% Free Free
8428.20.80 0.8% 0.4% Free Free
8428.33.40 0.5% 0.3% Free Free
8428.33.80 0.8% 0.4% Free Free
8428.39.40 0.5% 0.3% Free Free
8428.39.80 0.8% 0.4% Free Free
8428.90.40 0.5% 0.3% Free Free
8428.90.80 0.8% 0.4% Free Free
8431.39.40 0.5% 0.3% Free Free
8431.39.80 0.8% 0.4% Free Free
8456.10.60 2% 1.3% 0.7% Free
8456.10.80 2.6% 2.5% 2.4% 2.4%
8456.99.70 1.9% 1.3% 0.6% Free
8456.99.90 2.5% 2.4% 2.2% 2.2%
8462.21.40 3.3% 2.2% 1.1% Free
8462.29.40 3.3% 2.2% 1.1% Free
8464.90.60 1.8% 1.2% 0.6% Free
8464.90.90 2.4% 2.2% 2% 2%
8465.99.40 2% 1.3% 0.7% Free
8465.99.80 2.6% 2.5% 2.4% 2.4%
8466.10.40 3.2% 2.2% 1.1% Free
8466.10.80 4.3% 4.1% 3.9% 3.9%
8466.20.40 3.1% 2.1% 1% Free
8466.20.80 4.1% 3.9% 3.7% 3.7%
8466.30.20 2.4% 1.6% 0.8% Free
8466.30.40 6.5% 4.3% 2.2% Free
8466.30.60 3.2% 3.1% 2.9% 2.9%
8466.30.80 8.6% 8.3% 8% 8%
8466.91.40 1.3% 0.6% Free Free
8466.91.80 1.9% 0.9% Free Free
8466.93.47 3.5% 2.4% 1.2% Free
8466.93.85 3.5% 2.4% 1.2% Free
8466.94.55 3.5% 2.4% 1.2% Free
8466.94.75 3.5% 2.4% 1.2% Free
8469.11.00 0.6% 0.3% Free Free
8470.21.00 2% 1.3% 0.7% Free
8470.29.00 2% 1.3% 0.7% Free
8470.30.00 2% 1.3% 0.7% Free
8471.10.00 2.6% 1.7% 0.9% Free
8471.30.00 2% 1.4% 0.7% Free
8471.41.00 2% 1.4% 0.7% Free
8471.49.26 1% 0.5% Free Free
8471.49.29 1% 0.5% Free Free
8471.49.32 1% 0.5% Free Free
8471.49.34 1% 0.5% Free Free
8471.49.42 1% 0.5% Free Free
8471.60.35 1% 0.5% Free Free
8471.60.45 1% 0.5% Free Free
8471.60.52 1% 0.5% Free Free
8471.60.54 1% 0.5% Free Free
8471.60.80 1% 0.5% Free Free
8472.90.95 2.6% 2.2% 1.8% 1.8%
8473.10.20 2.1% 1.4% 0.7% Free
111 STAT. 2957
HTS Subheading July 1, 1997 January 1, 1998 January 1, 1999 January 1, 2000
8473.10.40 2.8% 2.4% 2% 2%
8473.40.10 2% 1.4% 0.7% Free
8473.40.95 2.7% 2.3% 1.9% 1.9%
8477.10.70 2.6% 1.7% 0.9% Free
8477.10.90 3.4% 3.3% 3.1% 3.1%
8477.40.40 2.6% 1.7% 0.9% Free
8477.40.80 3.4% 3.3% 3.1% 3.1%
8477.59.40 2.6% 1.7% 0.9% Free
8477.59.80 3.4% 3.3% 3.1% 3.1%
8477.90.15 2.6% 1.7% 0.9% Free
8477.90.25 3.4% 3.3% 3.1% 3.1%
8477.90.35 2.6% 1.7% 0.9% Free
8477.90.45 3.4% 3.3% 3.1% 3.1%
8477.90.55 2.6% 1.7% 0.9% Free
8477.90.65 3.4% 3.3% 3.1% 3.1%
8477.90.75 2.6% 1.7% 0.9% Free
8477.90.85 3.4% 3.3% 3.1% 3.1%
8479.89.87 2.3% 1.5% 0.8% Free
8479.89.97 3% 2.7% 2.5% 2.5%
8479.90.93 1% 0.5% Free Free
8479.90.97 1.5% 0.7% Free Free
8480.71.40 2.6% 1.7% 0.9% Free
8480.71.80 3.4% 3.3% 3.1% 3.1%
8504.40.95 2.1% 1.8% 1.5% 1.5%
8504.50.40 2.3% 1.5% 0.8% Free
8504.90.65 2.1% 1.4% 0.7% Free
8504.90.75 2.8% 2.6% 2.5% 2.4%
8514.10.40 0.7% 0.3% Free Free
8514.10.80 1% 0.5% Free Free
8514.20.40 0.7% 0.3% Free Free
8514.20.80 1% 0.5% Free Free
8514.30.60 1.3% 0.9% 0.5% Free
8514.30.80 1.8% 1.5% 1.3% 1.3%
8514.90.40 0.7% 0.3% Free Free
8514.90.80 1% 0.5% Free Free
8515.80.40 0.5% 0.3% Free Free
8515.80.80 0.8% 0.4% Free Free
8515.90.10 1.3% 0.9% 0.5% Free
8515.90.30 1.8% 1.7% 1.6% 1.6%
8517.11.00 1.6% 0.8% Free Free
8517.19.40 6.4% 4.3% 2.1% Free
8517.19.80 6.4% 4.3% 2.1% Free
8517.21.00 3.5% 2.4% 1.2% Free
8517.22.00 3.5% 2.4% 1.2% Free
8517.30.15 6.4% 4.3% 2.1% Free
8517.30.20 6.4% 4.3% 2.1% Free
8517.30.25 6.4% 4.3% 2.1% Free
8517.30.30 6.4% 4.3% 2.1% Free
8517.30.50 2.5% 1.7% 0.8% Free
8517.50.10 2.5% 1.7% 0.8% Free
8517.50.50 6.4% 4.3% 2.1% Free
8517.50.60 2.5% 1.7% 0.8% Free
8517.50.90 3.5% 2.4% 1.2% Free
8517.80.10 6.4% 4.3% 2.1% Free
8517.80.20 3.5% 2.4% 1.2% Free
8517.90.04 3.5% 2.4% 1.2% Free
8517.90.08 3.5% 2.4% 1.2% Free
8517.90.12 6.4% 4.3% 2.1% Free
8517.90.16 3.5% 2.4% 1.2% Free
111 STAT. 2958
HTS Subheading July 1, 1997 January 1, 1998 January 1, 1999 January 1, 2000
8517.90.24 6.4% 4.3% 2.1% Free
8517.90.26 3.5% 2.4% 1.2% Free
8517.90.32 6.4% 4.3% 2.1% Free
8517.90.34 3.5% 2.4% 1.2% Free
8517.90.36 6.4% 4.3% 2.1% Free
8517.90.38 6.4% 4.3% 2.1% Free
8517.90.44 3.5% 2.4% 1.2% Free
8517.90.48 6.4% 4.3% 2.1% Free
8517.90.52 6.4% 4.3% 2.1% Free
8517.90.56 3.5% 2.4% 1.2% Free
8517.90.58 6.4% 4.3% 2.1% Free
8517.90.64 6.4% 4.3% 2.1% Free
8517.90.66 3.5% 2.4% 1.2% Free
8518.10.40 3.7% 2.5% 1.2% Free
8518.29.40 3.7% 2.5% 1.2% Free
8518.30.10 6.4% 4.3% 2.1% Free
8518.40.10 6.4% 4.3% 2.1% Free
8518.90.20 6.4% 4.3% 2.1% Free
8518.90.60 3.7% 2.5% 1.2% Free
8520.20.00 1.1% 0.5% Free Free
8522.90.45 2.1% 1.4% 0.7% Free
8523.11.00 1.1% 0.6% Free Free
8523.20.00 1.1% 0.6% Free Free
8523.90.00 1.1% 0.6% Free Free
8524.31.00 2.6¢/m2 of recording surface 1.3¢/m2 of or recording surface Free Free
8524.39.40 2.8% 1.9% 0.9% Free
8524.39.80 3.7% 3.2% 2.7% 2.7%
8524.40.00 5.1¢/m2 of recording surface 3.4¢/m2 of recording surface 1.7¢/m2 of recording surface Free
8524.91.00 2.6¢/m2 of recording surface 1.3¢/m2 of recording surface Free Free
8524.99.60 2.6¢/m2 of recording surface 1.3¢/m2 of recording surface Free Free
8524.99.90 3.9¢/m2 of recording surface 1.9¢/m2 of recording surface Free Free
8525.10.10 2% 1.3% 0.7% Free
8525.10.30 2.6% 2.2% 1.8% 1.8%
8525.10.70 4.2% 3.6% 3% 3%
8525.10.90 3.2% 2.1% 1.1% Free
8525.20.05 3.2% 2.1% 1.1% Free
8525.20.15 3.2% 2.1% 1.1% Free
8525.20.28 1.1% 0.6% Free Free
8525.20.30 3.2% 2.1% 1.1% Free
8525.40.40 2.2% 1.5% 0.7% Free
8525.40.80 2.9% 2.5% 2.1% 2.1%
8527.90.85 4.5% 3% 1.5% Free
8528.12.92 3.8% 2.5% 1.3% Free
8529.10.70 3.2% 2.1% 1.1% Free
8529.10.90 4.2% 3.6% 3% 3%
8529.90.24 2.4% 1.2% Free Free
8529.90.74 1.6% 0.8% Free Free
8529.90.77 2.4% 1.2% Free Free
8529.90.87 2.4% 1.2% Free Free
111 STAT. 2959
HTS Subheading July 1, 1997 January 1, 1998 January 1, 1999 January 1, 2000
8529.90.88 4.4% 4.2% 4% 4%
8531.20.00 1.4% 1% 0.5% Free
8531.80.40 0.7% 0.4% Free Free
8531.80.70 1.4% 1% 0.5% Free
8531.80.90 1.9% 1.6% 1.3% 1.3%
8531.90.10 1.4% 1% 0.5% Free
8531.90.30 1.9% 1.6% 1.3% 1.3%
8531.90.90 1.9% 1.6% 1.3% 1.3%
8532.10.00 7.1% 4.7% 2.4% Free
8532.21.00 7.1% 4.7% 2.4% Free
8532.22.00 7.1% 4.7% 2.4% Free
8532.23.00 7.1% 4.7% 2.4% Free
8532.24.00 7.1% 4.7% 2.4% Free
8532.25.00 7.1% 4.7% 2.4% Free
8532.29.00 7.1% 4.7% 2.4% Free
8532.30.00 7.1% 4.7% 2.4% Free
8532.90.00 2.8% 1.8% 0.9% Free
8533.10.00 4.5% 3% 1.5% Free
8533.21.00 4.5% 3% 1.5% Free
8533.29.00 3.2% 2.1% 1.1% Free
8533.31.00 4.5% 3% 1.5% Free
8533.39.00 3.2% 2.1% 1.1% Free
8533.40.80 4% 2.7% 1.3% Free
8533.90.40 4.5% 3% 1.5% Free
8533.90.80 4.5% 3% 1.5% Free
8534.00.00 2.8% 1.9% 0.9% Free
8536.50.70 2.8% 1.9% 0.9% Free
8536.50.90 3.7% 3.2% 2.7% 2.7%
8536.69.40 2.8% 1.9% 0.9% Free
8536.69.80 3.7% 3.2% 2.7% 2.7%
8536.90.40 2.8% 1.9% 0.9% Free
8536.90.80 3.7% 3.2% 2.7% 2.7%
8538.90.10 3.2% 2.1% 1.1% Free
8538.90.30 4.2% 3.9% 3.5% 3.5%
8541.40.20 0.5% 0.3% Free Free
8543.81.00 2.3% 1.6% 0.8% Free
8543.89.92 2.3% 1.6% 0.8% Free
8543.89.96 3.1% 2.9% 2.6% 2.6%
8543.90.64 2.3% 1.6% 0.8% Free
8543.90.68 3.1% 2.9% 2.6% 2.6%
8543.90.84 2.3% 1.6% 0.8% Free
8543.90.88 3.1% 2.9% 2.6% 2.6%
8544.41.40 2.8% 1.9% 0.9% Free
8544.41.80 3.7% 3.1% 2.6% 2.6%
8544.49.40 3.2% 2.1% 1.1% Free
8544.49.80 4.2% 3.9% 3.5% 3.5%
8544.51.40 2.8% 1.9% 0.9% Free
8544.51.70 2.8% 1.9% 0.9% Free
8544.51.90 3.7% 3.1% 2.6% 2.6%
8544.70.00 6.3% 4.2% 2.1% Free
9009.11.00 2% 1.3% 0.7% Free
9009.21.00 2% 1.3% 0.7% Free
9010.90.70 3% 2% 1% Free
9010.90.90 4% 3.5% 2.9% 2.9%
9013.80.70 4.7% 3.2% 1.6% Free
9013.80.90 6.3% 5.4% 4.5% 4.5%
9013.90.50 4.7% 3.2% 1.6% Free
9013.90.90 6.3% 5.4% 4.5% 4.5%
9017.10.40 3.2% 2.2% 1.1% Free
111 STAT. 2960
HTS Subheading July 1, 1997 January 1, 1998 January 1, 1999 January 1, 2000
9017.10.80 4.3% 4.1% 3.9% 3.9%
9017.20.70 3.8% 2.6% 1.3% Free
9017.20.80 5.1% 4.8% 4.6% 4.6%
9026.10.40 22¢ each + 3.5% 15¢ each + 2.4% 8¢ each + 1.2% Free
9026.80.40 22¢ each + 3.4% 15¢ each + 2.3% 7.5¢ each + 1.2% Free
9026.90.20 2.3% 1.5% 0.8% Free
9026.90.40 4.1% 2.8% 1.4% Free
9027.20.80 2.9% 1.9% 1% Free
9027.30.80 4.6% 3.1% 1.5% Free
9027.50.80 4.6% 3.1% 1.5% Free
9027.80.80 2.9% 1.9% 1% Free
9027.90.58 3% 2.3% 1.7% 1.7%
9027.90.64 4.6% 3.1% 1.5% Free
9027.90.68 6.1% 4.8% 3.5% 3.5%
9027.90.84 2.9% 1.9% 1% Free
9027.90.88 3.8% 3% 2.2% 2.2%
9030.90.64 2.3% 1.5% 0.8% Free
9030.90.68 3% 2.3% 1.7% 1.7%
9030.90.84 2.3% 1.5% 0.8% Free
9030.90.88 3% 2.3% 1.7% 1.7%
9031.49.70 4.6% 3.1% 1.5% Free
9031.49.90 6.1% 4.8% 3.5% 3.5%
9031.80.40 2.3% 1.5% 0.8% Free
9031.80.80 3% 2.3% 1.7% 1.7%
9031.90.54 4.6% 3.1% 1.5% Free
9031.90.58 6.1% 4.8% 3.5% 3.5%
9031.90.70 2.3% 1.5% 0.8% Free
9031.90.90 3% 2.3% 1.7% 1.7%
Section B. For subheadings 8518.90.40, the Rates of Duty 1-General subcolumn is modified (i) by deleting the rate of duty in such subcolumn and inserting the rate of duty specified for such subheading in the first column in the table below in lieu thereof, and (ii) for each of the subsequent columns the rate of duty in the Rates of Duty 1-General subcolumn is deleted and the following rates of duty are inserted in such subheading in lieu thereof on the dates announced for each column in this table by the United States Trade Representative in the Federal Register, at any time after the United States Trade Representative has determined that other major countries provide adequate entity coverage under the Agreement on Government Procurement, entered into on April 15, 1994, or under another binding international agreement.
HTS Subheading Stage 1 Stage 2 Stage 3 Stage 4 Stage 5
8518.90.40 7.7% 6.8% 6% 5.1% 4.3%
111 STAT. 2961
Section C. For the following subheadings, the Rates of Duty 1-Special subcolumn is modified on January 1, 1998, by deleting the rate of duty and the “(CA)” following such rate and inserting “CA”, in alphabetical sequence, in the parentheses following the “Free" rate of duty in such subcolumn.
7017.10.30 8524.99.90 8544.49.40 9027.90.68
7017.10.60 8528.12.92 8544.49.80 9027.90.84
7020.00.30 8528.12.96 8544.51.70 9027.90.88
7020.00.60 8536.50.70 8544.51.90 9030.90.64
8504.50.40 8536.50.90 9013.80.70 9030.90.68
8504.50.80 8536.69.40 9013.80.90 9030.90.84
8518.10.40 8536.69.80 9013.90.50 9030.90.88
8518.10.80 8536.90.40 9013.90.90 9031.80.40
8518.29.40 8536.90.80 9017.10.40 9031.80.80
8518.29.80 8538.90.10 9017.10.80 9031.90.70
8524.39.40 8538.90.30 9017.20.70 9031.90.90
8524.39.80 8544.41.40 9017.20.80
8524.99.60 8544.41.80 9027.90.64
Section D. For subheadings 8428.90.40 and 8428.90.80, the Rates of Duty 1-Special subcolumn is modified on January 1, 1998, by deleting the rate of duty and the “(MX)” following such rate and inserting “MX”, in alphabetical sequence, in the parentheses following the “Free" rate of duty in such subcolumn.
Section E. For the following subheadings, the Rates of Duty 1-Special subcolumn is modified on January 1 of each of the dates in the table below by deleting the existing rate of duty preceding the symbol “MX” in parentheses in such subcolumn and inserting in lieu thereof the rate of duty specified below for such date.
HTS Subheading 1998 1999 2000 2001 2002 2003
2208.40.20 18.5¢/pf. liter 14.8¢/pf. liter 11.1¢/pf. liter 7.4¢/pf. liter 3.7¢/pf. liter Free
2208.40.40 18.5¢/pf. liter 14.8¢/pf. liter 11.1¢/pf. liter 7.4¢/pf. liter 3.7¢/pf. liter Free
2208.40.60 18.5¢/pf. liter 14.8¢/pf. liter 11.1¢/pf. liter 7.4¢/pf. liter 3.7¢/pf. liter Free
2208.40.80 18.5¢/pf. liter 14.8¢/pf. liter 11.1¢/pf. liter 7.4¢/pf. liter 3.7¢/pf. liter Free
8544.51.70 2.6% 2.1% 1.5% 1% 0.5% Free
8544.51.90 2.6% 2.1% 1.5% 1% 0.5% Free
7012 July 18, 1997 Captive Nations Week, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7012 of July 18, 1997
Captive Nations Week, 1997 By the President of the United States of America A Proclamation

From its earliest days as a Nation. America has been a champion of freedom and human dignity. Our Declaration of Independence was a ringing cry against “the establishment of an absolute tyranny over these States” and affirmed the revolutionary concept that governments derive their powers from the free consent of those they govern. For more than two centuries our Bill of Rights has guaranteed such basic human rights as freedom of religion, freedom of speech, freedom of the 111 STAT. 2962press, and freedom from arbitrary arrest. With such a history and heritage, we can feel only outrage that millions of people around the world still suffer beneath the shadow of oppression, their rights routinely violated by their own governments and leaders.

Almost four decades ago, our Nation observed the first Captive Nations Week to express formally our solidarity with the oppressed peoples of the world. Since that time, thanks to our steadfast advocacy for democratic reform and universal human rights, and the courage and determination of countless men and women around the globe, the world’s political landscape has undergone a remarkable transformation. Nations once dominated by the Soviet Union and its satellite governments have blossomed into new democracies, establishing free market economies and free societies that respect individual rights. Families and countrymen once divided by walls and barbed wire, now walk together in the fresh air of liberty. The unprecedented gathering of 44 countries at the Euro-Atlantic Partnership Council meeting earlier this month in Madrid symbolizes how far we have come in building a stable, democratic, and undivided Europe.

Yet while countries like Poland, Romania, and Estonia are no longer among the ranks of captive nations, too many others are still held hostage by tyranny, and new nations still fall victim to the scourge of oppression. Tragically, even as the wave of freedom and democratic reform sweeps across Eastern and Central Europe, former Soviet bloc countries, and nations in South America, Asia, and Africa, there are still governments that derive their strength, not from the consent of their citizens, but from terror, repression, and exploitation. Too many leaders still fuel the fires of racial, ethnic, and religious hatred; too many people still suffer from ignorance, prejudice, and brutality.

As we observe Captive Nations Week this year, let us reaffirm our commitment to the American ideals of freedom and justice. Let us strengthen our resolve to promote respect for human rights and self-determination for women and men of every nationality, creed, and race. Let us continue to speak out for those who have no voice. It is our Nation’s obligation to do so, as the world’s best hope for lasting peace and freedom and as a source of enduring inspiration to oppressed peoples everywhere.

The Congress, by Joint Resolution approved July 17, 1959 (73 Stat. 212), has authorized and requested the President to issue a proclamation designating the third week in July of each year as “Captive Nations Week.”

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim July 20 through July 26, 1997, as Captive Nations Week. I call upon the people of the United States to observe this week with appropriate ceremonies and activities and to rededicate ourselves to supporting the cause of human rights, liberty, peace, and self-determination for all the peoples of the world.

IN WITNESS WHEREOF, I have hereunto set my hand this eighteenth day of July, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7013 July 24, 1997 Death of William J. Brennan, Jr. Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7013 of July 24, 1997 111 STAT. 2963
Death of William J. Brennan, Jr. By the President of the United States of America A Proclamation

As a mark of respect for the memory of William J. Brennan, Jr., former Associate Justice of the Supreme Court of the United States, I hereby order, by the authority vested in me as President of the United States of America by section 175 of title 36 of the United States Code, that the flag of the United States shall be flown at half-staff upon all public buildings and grounds, at all military posts and naval stations, and on all naval vessels of the Federal Government in the District of Columbia and throughout the United States and its Territories and possessions until sunset on the day of interment. I also direct that the flag shall be flown at half-staff for the same period at all United States embassies, legations, consular offices, and other facilities abroad, including all military facilities and naval vessels and stations.

IN WITNESS WHEREOF, I have hereunto set my hand this twenty-fourth day of July, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7014 July 25, 1997 National Korean War Veterans Armistice Day, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7014 of July 25, 1997
National Korean War Veterans Armistice Day, 1997 By the President of the United States of America A Proclamation

On July 27, 1953, a negotiated cease-fire brought an end to the Korean War and to some of the most savage fighting in the history of America’s Armed Forces. More than 54,000 Americans lost their lives, more than 103,000 were wounded, and thousands more were listed as missing in action. To a nation still recovering from the terrors and hardships of World War II, this conflict was a harsh reminder that freedom still had enemies at large in the world.

But the Korean War taught us that free nations could work together in partnership through the United Nations, standing firm against tyranny and in defense of liberty. We were reminded once again of the skill, courage, and indomitable spirit of our men and women in uniform. We learned that the American people were tough enough and determined enough to prevail in the long struggle of the Cold War.

Our victory in that struggle had its roots in the Korean War, and we owe our veterans of that conflict a profound debt of gratitude. Many of them were still scarred from the battles of World War II when they answered the call to duty in Korea. They fought a different kind of war in an unfamiliar land, facing a new and fiercely determined enemy. There they proved to all the enemies of freedom, and to the world, that 111 STAT. 2964America’s commitment to liberty, democracy, and human rights was not only one of words, but also one of deeds.

Etched into the eastern wall of the Korean War Veterans Memorial in our Nation’s Capital is the simple sentence, “Freedom Is Not Free.” On this day we honor those who recognized the truth of that inscription and were willing to pay freedom’s price with their own lives. We salute our men and women in uniform who served so valiantly in the Korean War, and we remember with sorrow and with pride all those who never came home.

The Congress, by Public Law 104–19 (36 U.S.C. 169m), has designated July 27, 1997, as “National Korean War Veterans Armistice Day” and has authorized and requested the President to issue a proclamation in observance of this day.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim July 27, 1997, as National Korean War Veterans Armistice Day. I call upon all Americans to observe this day with appropriate ceremonies and activities that honor and give thanks to our Nation’s distinguished Korean War veterans. I also ask Federal departments and agencies, interested groups, organizations, and individuals to fly the American flag at half-staff on July 27, 1997, in memory of the Americans who died as a result of their service in Korea.

IN WITNESS WHEREOF, I have hereunto set my hand this twenty-fifth day of July, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7015 July 25, 1997 Parents’ Day, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7015 of July 25, 1997
Parents’ Day, 1997 By the President of the United States of America A Proclamation

There are few experiences in life more challenging or more rewarding than being a parent. Holding their child for the first time, parents suddenly realize that they are totally responsible for this small person entrusted to their care. On Parents’ Day, we pay tribute to these quiet heroes among us—the mothers and fathers who make a lifetime commitment to their children.

Parents work hard to meet their children's need for food, shelter, clothing, and protection; but more important, they give their daughters and sons the deep and abiding love, guidance, attention, and encouragement that empowers them with the values and self-esteem to succeed in life. Parents love their children as they are, yet still help them to dream big dreams about who they can become.

The more we learn about our children, the more we realize the importance of good parenting. As we learned at the recent White House Conference on Early Childhood Development and Learning, the first few years of life are crucial to a child’s emotional, social, and intellectual 111 STAT. 2965development. As their children’s first and most influential teachers, parents play an immeasurably important role in helping their sons and daughters grow into happy and healthy adulthood.

The responsibilities of parenthood have become even more challenging in today’s complex world. In many American families, both parents must work, struggling to balance the demands of job, home, and family. This balancing act is even harder for single parents, who must face the challenge of raising their children alone. In our mobile society, parents are often less able to rely on an extended family to help them provide the care and attention their children need. And today’s mothers and fathers must protect their children from the ever-present threats of drugs, gangs, guns, violence, and unhealthy influences in the media and on the Internet.

Recognizing that good parents are the foundation of our society, my Administration has strived for the past 4 years to give parents the help they need to meet their responsibilities. I signed into law the Family and Medical Leave Act of 1993, and we are now proposing an expansion of that legislation to allow workers up to 24 hours of unpaid leave each year to meet family obligations. We are fighting to make our neighborhoods safer and drug-free and to reduce juvenile crime. We have expanded and improved Head Start to help parents prepare their young children to enter school ready to learn, and we have created an Early Head Start Program for children age 3 and under. We succeeded in requiring the installation of the V-chip and in helping to develop a voluntary ratings system on television so that parents can better protect their children from inappropriate material. And we are working with the computer industry to provide family-friendly controls that will give parents similar tools to use on the Internet.

As we observe Parents’ Day this year, I urge all Americans to join me in paying tribute to the millions of mothers and fathers—biological and adoptive, foster parents and stepparents—whose boundless love and selfless efforts are building a better life for their children and for our nation. Let us repay that love and effort by striving, in our neighborhoods, schools, businesses, community and church organizations, and in government at every level, to help parents fulfill their awesome responsibilities and create a brighter future for America.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States and consistent with Public Law 103–362, do hereby proclaim Sunday, July 27, 1997, as Parents’ Day. I invite the States, communities, and the people of the United States to join together in observing this day with appropriate ceremonies and activities to honor our Nation's parents.

IN WITNESS WHEREOF, I have hereunto set my hand this twenty-fifth day of July, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7016 July 31, 1997 To Implement an Accelerated Schedule of Duty Elimination Under the North American Free Trade Agreement Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7016 of July 31, 1997 111 STAT. 2966
To Implement an Accelerated Schedule of Duty Elimination Under the North American Free Trade Agreement By the President of the United States of America A Proclamation 1. On December 17, 1992, the Governments of Canada, Mexico, and the United States of America entered into the North American Free Trade Agreement (“the NAFTA”). The NAFTA was approved by the Congress in section 101(a) of the North American Free Trade Agreement Implementation Act (“the NAFTA Implementation Act”) (19 U.S.C. 3311(a)) and was implemented with respect to the United States by Proclamation 6641 of December 15, 1993. 2. Section 201(b) of the NAFTA Implementation Act (19 U.S.C. 3331(b)) authorizes the President, subject to the consultation and layover requirements of section 103(a) of the NAFTA Implementation Act (19 U.S.C. 3313(a)), to proclaim accelerated schedules for duty elimination that the United States may agree to with Mexico or Canada. Consistent with Article 302(3) of the NAFTA, I, through my duly empowered representative, on March 20, 1997, entered into an agreement with the Government of Canada and the Government of Mexico providing for an accelerated schedule of duty elimination for specific goods. Consultation and layover requirements of section 103(a) of the NAFTA Implementation Act with respect to such schedule of duty elimination have been satisfied. 3. Pursuant to section 201(b) of the NAFTA Implementation Act, I have determined that the modifications hereinafter proclaimed of duties on goods originating in the territory of a NAFTA party are necessary or appropriate to (i) maintain the general level of reciprocal and mutually advantageous concessions with respect to Canada and Mexico provided for by the NAFTA and (ii) to carry out the agreement with Canada and Mexico providing an accelerated schedule of duty elimination for specific goods. 4. Section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483) (“the Trade Act”), authorizes the President to embody in the Harmonized Tariff Schedule of the United States (“the HTS”) the substance of the relevant provisions of acts affecting import treatment, and actions thereunder, including the removal, modification, continuance, or imposition of any rate of duty or other import restriction. NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, acting under the authority vested in me by the Constitution and the laws of the United States, including but not limited to section 201(b) of the NAFTA Implementation Act and section 604 of the Trade Act, do proclaim that: (1) In order to provide for an accelerated schedule of duty elimination for specific goods, the tariff treatment set forth in the HTS for certain NAFTA originating goods is modified as provided in the Annex to this proclamation. 111 STAT. 2967 (2) Any provisions of previous proclamations and Executive orders that are inconsistent with the actions taken in this proclamation are superseded to the extent of such inconsistency. (3) The amendments made to the HTS by the Annex to this proclamation shall be effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after July 1, 1997. IN WITNESS WHEREOF, I have hereunto set my hand this thirty-first day of July, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 111 STAT. 2968 Annex MODIFICATIONS TO THE HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES ("HTS") WITH RESPECT TO THE TARIFF TREATMENT OF CERTAIN GOODS ORIGINATING IN THE TERRITORY OF CANADA OR MEXICO
Section A. Effective with respect to goods of Canada under the terms of general note 12 of the tariff schedule that are entered, or withdrawn from warehouse for consumption on or after July 1, 1997, the Harmonized Tariff Schedule of the United States (“HTS”) is modified as follows: (1). For subheadings 7901.12.10, 7901.12.50 and 9603.50.00, the Rates of Duty 1 Special subcolumn is modified by deleting the rate of duty and the “(CA)” following such rate and inserting “CA,” in alphabetical order, in the parentheses following the “Free” rate of duty in such subcolumn. (2). The following subheadings are inserted in numerical sequence in subchapter V of chapter 99 to the HTS. The subheadings are set forth in columnar format, and material in such columns are set forth in the columns of the HTS designated “Heading/Subheading”, “Article Description”, and “Rates of Duty 1 Special”, respectively. Bracketed matter is included to assist in the understanding of proclaimed modifications.
[Goods of Canada,:]
“9905.20.25  Tahini (provided for in subheading 2008.19.90) Free (CA)
9905.39.21  Polyethylene film coated with heat activated adhesive (provided for in subheading 3921.90.50) Free (CA)
9905.44.21  Venetian blinds of wood (provided for in subheading 4421.90.40) Free (CA)
9905.54.20  Elastomeric monofilaments of polyurethane (provided for in subheading 5404.10.80) Free (CA)
9905.56.04  Imitation catgut (provided for in subheading 5604.90) Free (CA)
9905.68.15  Briquettes for gas fuel barbecues (provided for in subheading 6815.99.40 or 6914.90.80) Free (CA)
9905.73.40  Screws and bolts, whether or not with their nuts or washers, for aircraft (provided for in subheading 7318.15, 7508.90 or 8108.90.30) Free (CA)
9905.91.07  Appliance timers (provided for in heading 91071 Free (CA)
9905.91.14  Parts for appliance timers of heading 9107 (provided for in subheading 9114.90.30 or 9114.90.50) Free (CA)
Section B. Effective with respect to goods of Mexico under the terms of general note 12 of the tariff schedule that are entered, or withdrawn from warehouse for consumption, on or after July 1, 1997, the Harmonized Tariff Schedule of the United States ("HTS") is modified as follows: (1). For the following subheadings, the Rates of Duty 1 Special subcolumn is modified by deleting the staged rate of duty and the “(MX)” following such rate and by inserting “MX”, in alphabetical order, in the parentheses following the “Free” rate of duty in such subcolumn.
2005.90.80 7901.12.10
2933.90.87 8536.50.80
5605.00.10 8714.91.90
5605.00.90
111 STAT. 2969 (2). The following subheadings are inserted in numerical sequence in subchapter VI of chapter 99 to the HTS. The subheadings are set forth in columnar format, and material in such columns are set forth in the columns of the HTS designated “Heading/Subheading”, “Article Description”, and “Rates of Duty 1 Special”, respectively. Bracketed matter is included to assist in the understanding of proclaimed modifications.
[Goods of Mexico,:]
“9906.29.33  Trimethoprim (provided for in subheading 2933.59.22) Free (MX)
9906.29.35  Sulfamethoxazol (provided for in subheading 2935.00.48) Free (MX)
9906.44.21  Venetian blinds of wood (provided for in subheading 4421.90.40) Free (MX)
9906.59.03  Woven fabrics of polypropylene, coated or laminated with plastics on one side only (provided for in subheading 5903.90.25) Free (MX)
9906.63.02  Towels of cotton, printed, other than terry toweling or similar terry fabrics (provided tor in subheading 6302.91.00) Free (MX)
9906.73.18  Screws and bolts, whether or not with their nuts or washers, for aircraft (provided for in subheading 7318.15) Free (MX)"
7017 August 19, 1997 Women’s Equality Day, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7017 of August 19, 1997
Women’s Equality Day, 1997 By the President of the United States of America A Proclamation

Each year, on Women's Equality Day, we reflect on how far we have traveled on our journey to make America live up to the ideals of justice and equality articulated so powerfully in the Declaration of Independence, the Constitution, and the Bill of Rights. Few constitutional amendments have affected that progress more profoundly than the 19th, which guarantees American women the right to vote.

Looking back from today’s vantage point, where women hold positions of authority and responsibility at almost every level of government, it is hard to imagine that, for almost a century and a half, women were barred from exercising the most fundamental right of every democracy. There are women still living among us who can remember a time when they were prevented, by law, from having a role in shaping the destiny of their country and the impact of government on their own and their families’ lives. But thanks to women and men of extraordinary courage and conviction, who waged for years a determined campaign for women’s suffrage, the 19th Amendment was ratified in August of 1920 and opened the door for generations of American women to add their vision and voices to our national discourse.

This year, we mark another milestone in the life of our democracy: the 25th anniversary of the enactment of Title IX of the Education Amendments of 1972. Title IX, building on the spirit of the 19th Amendment, prohibits discrimination against women in education and sports programs. For a quarter-century, it has enabled American girls and women 111 STAT. 2970to make the most of their abilities, to dream big dreams, and, more important, to achieve those dreams. In large measure, because of the 19th Amendment and Title IX, our Nation has reaped the rewards of women’s talents, accomplishments, wisdom, and perspective. In every activity and profession, in the home and outside—as astronauts and professional athletes, as teachers and university presidents, as farmers and firefighters, as caregivers. Cabinet members, and Supreme Court Justices—women have made lasting contributions to the quality of our lives and the strength of our democracy.

Today, as Americans engage in a serious and profoundly important dialogue on the future of our multiracial, multiethnic, multicultural society, we do well to remember that we are all immeasurably enriched when we choose the path of inclusion and empowerment. Women's Equality Day and the anniversary of Title IX remind us that by demanding an equal opportunity for every American, we ensure a brighter future for all Americans.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim August 26, 1997, as Women’s Equality Day. I call upon the citizens of our great Nation to observe this day with appropriate programs and activities.

IN WITNESS WHEREOF, I have hereunto set my hand this nineteenth day of August, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7018 September 8, 1997 America Goes Back to School, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7018 of September 8, 1997
America Goes Back to School, 1997 By the President of the United States of America A Proclamation

Americans want the best for our children. We want them to live out their dreams, empowered with the tools they need to make the most of their lives and to build a future where America remains the world’s beacon of hope and freedom and opportunity. To do this, we must all make improving the quality of education in America one of our highest priorities.

In my State of the Union Address earlier this year, I issued a call to action for American education to prepare our Nation for the 21st century. Working together, we must make our schools strong and safe, with clear standards of achievement and discipline and talented, dedicated teachers in every classroom. Every school and every State should adopt rigorous national standards, with national tests in 4th-grade reading and 8th-grade math to make sure our children master the basics. We must ensure that every student can read independently and well by the end of the 3rd grade. We must connect every classroom and library to the Internet by the year 2000 and help all students become technologically literate. We must modernize school buildings and expand school choice and accountability in public education. And 111 STAT. 2971we must encourage lifelong learning for all our citizens, from expanding Head Start programs to helping adults improve their education and skills.

These goals are ambitious, but they are crucial if we are to prepare for the challenges and possibilities of life in the 21st century. With the 1997 balanced budget agreement, we will begin to meet these goals by providing new resources to help children learn to read, the means to help connect every school to the Internet, and tens of billions of dollars in tax cuts to help families pay for college.

I urge all Americans to become actively involved in their local schools and colleges and to make a real commitment to support education improvement and give our children the kind of support they need to succeed. The Partnership for Family Involvement in Education is setting a powerful example in this endeavor. These partners—including the Department of Education and more than 3,000 schools, families, colleges and universities, community, cultural, and religious groups, businesses, elected officials and policymakers, and the men and women of our Armed Forces—have pledged their support for our initiative, “America Goes Back to School: Answering the President’s Call to Action.” Through their dedication to our children, they are helping America’s young people grow into responsible and productive citizens. They are proving that when communities unite, every student can achieve.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim September 8 through September 14, 1997, as a time when America Goes Back to School. I encourage parents, schools, community and State leaders, businesses, civic and religious organizations, and the people of the United States to observe this week with appropriate ceremonies and activities expressing support for high academic standards and meaningful involvement in schools and colleges and the students and families they serve.

IN WITNESS WHEREOF, I have hereunto set my hand this eighth day of September, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7019 September 12, 1997 National Week of Food Recovery, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7019 of September 12, 1997
National Week of Food Recovery, 1997 By the President of the United States of America A Proclamation

The American people are blessed with rich natural resources and an agricultural sector that is the most efficient and productive in the world. It is a tragic reality, however, that in this land of plenty, many of our fellow Americans still go hungry each day. This statistic becomes even more heartbreaking when we realize that about 27 percent of the estimated 356 billion pounds of food that America produces each year goes to waste at the retail, wholesale, and consumer levels.

111 STAT. 2972

Most of this loss occurs in the commercial food chain, as food travels from farms to wholesale markets, manufacturers, supermarkets, company cafeterias, and restaurants, and much of it is recoverable. Whether it be day-old bread at a bakery or an extra pan of lasagna not served by a restaurant or cafeteria, a significant amount of this food is perfectly edible and wholesome. Throwing away such food is an intolerable loss, because it both denies hungry Americans a vital source of nourishment and wastes precious resources. Municipalities across the country currently spend about $1 billion a year in tax dollars to dispose of excess food.

There is a growing national movement to recover this food and distribute it to Americans in need. This movement, led by nonprofit groups and energized by new efforts at the Department of Agriculture, is making a noticeable difference in the amount of edible excess food that is finding its way to hungry people rather than ending up in dumpsters.

Every sector of our society—from individuals to large institutions—can do more to glean and recover excess food. Every person can have an impact. Individuals can donate canned and boxed goods to food drives; they can give their time and money to food recovery organizations; they can even encourage the places where they work—and the businesses they patronize—to get involved in this movement.

Food recovery efforts will never replace a strong Federal safety net that includes such critical programs as the Food Stamp Program; the Special Supplemental Nutrition Program for Women, Infants and Children; the National School Lunch and School Breakfast Programs; and nutrition education efforts. However, extra food, provided through food recovery, can serve as a vital supplement to the diets of millions of Americans in need.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim September 14 through September 20, 1997, as National Week of Food Recovery, to be held in conjunction with the National Summit on Food Recovery. I call on all Americans to observe this week by actively participating in and supporting efforts to recover food for distribution to hungry Americans.

IN WITNESS WHEREOF, I have hereunto set my hand this twelfth day of September, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7020 September 12, 1997 National Hispanic Heritage Month, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7020 of September 12, 1997
National Hispanic Heritage Month, 1997 By the President of the United States of America A Proclamation

Throughout our history, America’s promise of individual freedom and opportunity has drawn millions upon millions of immigrants from across the globe. As these newcomers arrived, they gradually wove their own traditions into the tapestry of our Nation’s culture and soci-111 STAT. 2973ety. The world’s economy is becoming ever more interdependent and competitive, and these changes and others brought on by the revolution in communication technologies are lowering many of the old barriers to economic, cultural, and intellectual exchange among nations. In this new global community, we benefit greatly from the contributions that Hispanic Americans bring to our economy and our society.

As the youngest and fastest-growing segment of our population, Hispanic Americans are an increasingly vital part of our economy. In the first 3 years of our Administration, more than 220,000 Hispanic-American-owned businesses were created, and in recent years the number of companies owned by Hispanic women, in particular, has grown at three times the overall rate of business growth. Our citizens with roots in South and Central America, the Caribbean, and Spain have inherited an entrepreneurial spirit and an intense work ethic that have helped energize the strongest American economy in a generation. The new head of the Small Business Administration, Aida Alvarez, is a symbol of that spirit and its importance to America. Along with Secretary of Energy Federico Pena, Under Secretary of Agriculture I. Miley Gonzales, and Ambassador Bill Richardson, the United States Representative to the United Nations, Administrator Alvarez reflects my Administration’s continuing commitment to bring highly qualified Hispanic Americans into the highest levels of Government.

Our Hispanic citizens also are vital to America’s success in expanding trade and developing closer ties with nations throughout the Western Hemisphere. Sharing a rich cultural and linguistic heritage with Hispanic Americans, these nations are already among our closest trading partners, and we hope to further expand our relationships with them at the Summit of the Americas next March.

The contributions of Hispanic Americans to the life of our Nation are much more than economic. Their strong commitment to family, community, and country sets a shining example for all our people. Generations of Hispanic Americans have served and sacrificed in America’s Armed Forces to defend liberty and advance democracy throughout the world. And Hispanic culture continues to deeply enrich our social, intellectual, and artistic life.

To meet the challenges of the 21st century, we must create a society that offers opportunity to all Americans, requires responsibility from all Americans, and nurtures a community of all Americans. Hispanic Americans throughout our country are working to build such a society. To honor them for their dedication to this endeavor and for their many contributions to our Nation and our culture, the Congress, by Public Law 100–402, has authorized and requested the President to issue annually a proclamation designating September 15 through October 15 as “National Hispanic Heritage Month.”

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim September 15 through October 15, 1997, as National Hispanic Heritage Month. I call upon all government officials, educators, and the people of the United States to honor this observance with appropriate programs, ceremonies, and activities, and I encourage all Americans to rededicate themselves to the pursuit of equality.

IN WITNESS WHEREOF, I have hereunto set my hand this twelfth day of September, in the year of our Lord nineteen hundred and ninety-111 STAT. 2974seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7021 September 15, 1997 50th Anniversary of the National Security Act of 1947 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7021 of September 15, 1997
50th Anniversary of the National Security Act of 1947 By the President of the United States of America A Proclamation

The United States emerged from the crucible of World War II to face a political and military landscape changed forever by the events of that conflict. The Soviet Union, a vital ally during the war, was fast becoming an actively hostile and dangerous opponent. And, as the most economically and militarily powerful nation on earth, the United States bore the awesome responsibility of preventing the onset of another and even more destructive world war.

Recognizing these harsh new realities, and wise in the hard lessons of recent history, President Truman and America’s other civilian and military leaders determined to create the structures and programs that would guarantee our national security and promote lasting world peace. The result of their efforts was the National Security Act of 1947. This single historic piece of legislation created four extraordinary institutions that continue to serve America superbly a half-century later: the Department of Defense, the United States Air Force, the Central Intelligence Agency, and the National Security Council.

The complex task of coordinating the operations of ground, sea, and air forces during World War II demonstrated the need for unified direction of America’s Armed Forces in the postwar world. The National Security Act answered that need by establishing the Department of Defense. Under the civilian control of the Secretary of Defense, and fortified by the collective experience, knowledge, and strategic guidance of the Joint Chiefs of Staff, the three military departments within the Department of Defense—the Army, Navy, and Air Force—began to work together as a powerful team to integrate the operation and administration of all our Nation’s Armed Forces.

Today, the Department of Defense has realized in large measure the objectives stated in the National Security Act. The Armed Forces and the unified commands have achieved a remarkable degree of integration in organization and operations and remain the best-trained, best-equipped, and best-prepared fighting force in the world. Our men and women in uniform stand ready to preserve America’s freedom and protect our national interests whenever and wherever they are threatened.

The Second World War also proved the critical importance of air power to the defense of our Nation. With the creation of the United States Air Force as an independent armed service within the Department of Defense, the National Security Act helped to ensure America’s mastery of the skies. In the subsequent 50 years, the courage and dedication of the men and women of the United States Air Force have been a constant source of pride and reassurance to the American people.

111 STAT. 2975

With equal devotion, the men and women of the Central Intelligence Agency have enabled America to meet the challenges of global leadership for the past half-century. Providing ten Presidents and their administrations with the strategic intelligence to make informed decisions vital to the security of our Nation, these dedicated public servants helped America to fight and win the Cold War. Today, in a world no longer burdened by superpower confrontation, they remain vigilant in the face of more diffuse and complex dangers: from aggression by rogue states and terrorism to the spread of weapons of mass destruction and international drug trafficking.

In creating the National Security Council, the National Security Act of 1947 provided the President with an invaluable forum for the consideration and coordination of domestic, foreign, and military policies related to America’s security. Supporting the President, his Cabinet, and his other close advisors with sound judgment, analysis, and advice, the men and women of the National Security Council can reflect with pride on five decades of unparalleled service to our Nation. Through the East-West confrontations of the Cold War to the threshold of the 21st century, the National Security Council has played a vital role in protecting our Nation’s security and in preparing us for the challenges of the future.

As we observe the 50th anniversary of the National Security Act of 1947, we pay tribute to the vision and determination of a generation of American civilian and military leaders. Working together, they established the remarkable institutions we celebrate this week; institutions that have helped to secure the peace and prosperity that America enjoys today. The success of their efforts and of the historic legislation enacted half a century ago is reflected in an outstanding record of achievement: nuclear war averted, the Cold War won, and the nations of the world turning to democracy and free markets.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim September 14 through September 20, 1997, as a time to commemorate the 50th Anniversary of the National Security Act of 1947. I call upon all Americans to observe this anniversary with appropriate programs and activities celebrating the accomplishments of this legislation and honoring the service and sacrifice of the thousands of dedicated Americans who have strived to carry out its mandate for the past five decades.

IN WITNESS WHEREOF, I have hereunto set my hand this fifteenth day of September, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7022 September 16, 1997 Citizenship Day and Constitution Week, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7022 of September 16, 1997 111 STAT. 2976
Citizenship Day and Constitution Week, 1997 By the President of the United States of America A Proclamation

Of all the dates in American history, one of the most important is perhaps the least well-known—September 17, 1787. On that day, our Nation’s Founders signed the Constitution of the United States, a document that has steadily grown in stature throughout the world as a model for democratic government under the rule of law.

As with most human enterprises, the Constitution was the product of compromise. The delegates to the Constitutional Convention brought with them to Philadelphia conflicting local and regional concerns, differing viewpoints, fears of creating a government that was either too powerful or too weak. When the convention seemed close to dissolving with nothing accomplished, Benjamin Franklin reminded his fellow delegates that history would judge them harshly if they failed in this great experiment of self-government: “. . . [M]ankind may hereafter, from this unfortunate instance, despair of establishing governments by human wisdom, and leave it to chance, war and conquest.”

But human wisdom did prevail. The delegates devised a framework for democracy with an ingenious design of checks and balances, broad protection of individual rights, and a mechanism for amendment to ensure that it would be able to respond to the ever-changing needs of our people. This remarkable document has rightly earned the world's admiration for its success in combining structural solidity with practical adaptability—a combination that has served our Nation through times of rapid change as well as times of stability.

We can measure that success by the thousands of men, women, and children who travel to our shores each year, seeking a chance to live out their dreams. Many of them know what life can be like without the blessings of our Constitution, and their experience is a powerful reminder to us of the importance of protecting the Constitution if we are to preserve freedom for ourselves and for the generations of Americans to follow. We can also learn much from their deep desire for American citizenship and their enthusiasm to embrace not only its privileges, but also its responsibilities—knowledge of and respect for our laws, a willingness to exercise their vote, and reverence for the fundamental American values of freedom, tolerance, and equality.

But today American citizenship requires more. At the Presidents’ Summit for America’s Future in Philadelphia this past April, I joined with Vice President Gore; former Presidents Ford, Carter, and Bush; General Colin Powell; and other national and community leaders in calling for a redefinition of American citizenship—a definition that includes a profound commitment to community service. Each of us must look into our own neighborhoods and communities and reach out to help our fellow Americans succeed. We can only fulfill America’s bright promise of freedom and opportunity by ensuring that every citizen shares in that promise.

In commemorating the signing of the Constitution and in recognition of the importance of active, responsible citizenship to preserve its 111 STAT. 2977blessings for our Nation, the Congress, by joint resolution of February 29, 1952 (36 U.S.C. 153), designated September 17 as “Citizenship Day,” and by joint resolution of August 2, 1956 (36 U.S.C. 159), requested the President to proclaim the week beginning September 17 and ending September 23 of each year as “Constitution Week.”

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim September 17, 1997, as Citizenship Day and September 17 through September 23, 1997, as Constitution Week. I call upon Federal, State, and local officials, as well as leaders of civic, educational, and religious organizations, to conduct meaningful ceremonies and programs in our schools, churches, and other community centers to foster a greater understanding and appreciation of the Constitution and the rights and duties of citizenship.

IN WITNESS WHEREOF, I have hereunto set my hand this sixteenth day of September, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7023 September 16, 1997 National POW/MIA Recognition Day, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7023 of September 16, 1997
National POW/MIA Recognition Day, 1997 By the President of the United States of America A Proclamation

Throughout our Nation’s history, the men and women of America’s Armed Forces have preserved our freedom, protected our security, and upheld our democratic values. From the battles of the American Revolution through the crucible of two world wars to the challenging peacekeeping and humanitarian missions of today’s post-Cold War era, our men and women in uniform have stood proudly in defense of the United States and in the cause of liberty. In the two centuries since our Nation's birth, more than a million have paid the price of that liberty with their lives.

Joining the ranks of these heroes are the thousands who have been held as prisoners of war or whose fate has never been resolved. Many have been lost in the chaos of battle, the grief of their loss made more acute for their families and their fellow Americans because of the inability to determine whether they perished or survived. Captive Americans, cruelly stripped of their freedom, treated with contempt and brutality, or used as pawns by their captors in a larger political struggle, have fought long, lonely battles against despair, physical and psychological torture, and the ultimate fear of being forgotten.

But Americans will never forget those who have borne the indignities and sufferings of captivity in service to our country, those missing in action, or those who died as prisoners of war, far from home and family. On National POW/MIA Recognition Day, we reaffirm our commitment to those still missing and renew our pledge to make every effort to obtain the answers to their fate. We can do no less for these American heroes and for their families, who have endured such profound 111 STAT. 2978loss and whose suffering continues as long as their loved ones’ fate remains unknown.

On September 19, 1997, the flag of the National League of Families of American Prisoners of War and Missing in Southeast Asia will be flown over the White House, the U.S. Capitol, the Departments of State, Defense, and Veterans Affairs, the Selective Service System Headquarters, the Vietnam Veterans Memorial, the Korean War Veterans Memorial, and national cemeteries across our country. This black and white banner, symbolizing America’s missing, is a stark and powerful reminder to people around the world that our Nation will keep faith with those who have served and sacrificed: that we will not rest until we receive the fullest possible accounting of every American missing in service to our country.

NOW, THEREFORE, I, WILLIAM J. CLINTON, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim September 19, 1997, as National POW/MIA Recognition Day. I ask all Americans to join me in honoring former American prisoners of war and those whose fate is still undetermined. I also encourage the American people to remember with special sympathy and concern the courageous families who maintain their steadfast vigil and who persevere in their search for answers and for the peace that comes only with certainty. Finally, I call upon State and local officials and private organizations to observe this day with appropriate ceremonies and activities.

IN WITNESS WHEREOF, I have hereunto set my hand this sixteenth day of September, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7024 September 19, 1997 Minority Enterprise Development Week, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7024 of September 19, 1997
Minority Enterprise Development Week, 1997 By the President of the United States of America A Proclamation

The American economy today is the envy of the world. Since the beginning of my Administration, our economy has created nearly 13 million new jobs, unemployment has declined to 4.9 percent, and America has once again become the world's leading exporter.

Minority entrepreneurs have played a vital role in this success story. With their faith in our free enterprise system, their determination to overcome any barriers to success, their willingness to work long and hard and to make the most of every opportunity, they epitomize the American can-do spirit. They create jobs in communities where jobs are most needed, and they set a powerful example of achievement for young people seeking to make the most of their lives.

In the years ahead, these minority business men and business women will become increasingly important to our Nation's competitive edge in the global economy, which will offer great rewards to those who truly 111 STAT. 2979understand life beyond our borders. Because of their racial, linguistic, and cultural diversity, minority entrepreneurs are uniquely positioned to meet the needs of this dynamic international marketplace.

Recognizing the contributions that minority enterprises make to the social and economic fabric of our Nation, we must continue to remove any barriers that prevent talented men and women of every racial and ethnic background from participating fully in America’s economic mainstream. Working in partnership, government and private industry must ensure that minority-owned firms have equal access to capital, technical assistance, new markets, and opportunities for growth. We must attract new entrepreneurs to the marketplace and encourage existing firms to expand. By doing so, we can ensure that America’s promise will continue to shine brightly for all our people.

As we observe Minority Enterprise Development Week, let us honor the energy, determination, and optimism of our Nation’s minority entrepreneurs, whose hard work has done so much to help keep America strong, prosperous, and full of hope for the future.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim September 21 through September 27, 1997, as Minority Enterprise Development Week. I call on all Americans to commemorate this event with appropriate ceremonies and activities in acknowledgment of the many contributions that minority entrepreneurs bring to our national life.

IN WITNESS WHEREOF, I have hereunto set my hand this nineteenth day of September, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7025 September 19, 1997 National Historically Black Colleges and Universities Week, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7025 of September 19, 1997
National Historically Black Colleges and Universities Week, 1997 By the President of the United States of America A Proclamation

We are a few short years away from the dawn of the 21st century, yet much of the challenge and change we have been anticipating is already upon us. We are competing today in a truly global economy, an economy based on information and technology as well as agriculture and industry. We are living in the age of the information revolution, the era of the World Wide Web, of daily advances in communications technology where a universe of knowledge is only a keyboard and a modem away. We are crossing the frontier into a new world, and our only map and compass in that world will be education.

We must build an educational system that prepares our young people for the jobs of the future. We must empower them with the values, experiences, and self-confidence to succeed in our diverse society. We must provide them with the knowledge and motivation to reach their 111 STAT. 2980full human potential—and we must leave no one behind. In devising such an educational system, we need only look to America’s Historically Black Colleges and Universities (HBCUs) for a model of excellence.

This extraordinary network of institutions, more than a century old, has created a legacy of unquestioned accomplishment in fostering student success. Founded to educate African Americans in a segregated society, these colleges and universities have flourished and built an enviable record of achievement in educating America’s black scientists, doctors, teachers, lawyers, artists, entrepreneurs, community and religious leaders, and other professionals. They have provided generations of students with access to highly supportive environments for learning. The experience and expertise of HBCUs make them an invaluable resource to our Nation during this period of significant change.

America’s Historically Black Colleges and Universities daily demonstrate effective leadership in a multitude of ways: they develop and practice innovative academic approaches to ensure student success; they create campus programs that offer new solutions to critical social problems; they produce cutting-edge research with practical applications; and they forge strong global relationships from a myriad of international activities. Moreover, against formidable financial odds, they have persisted in keeping education affordable for the constituencies they serve, without sacrificing quality. They have never allowed scarce funding, poor educational preparation, or societal disadvantage to get in the way of their mission to educate and nurture the intellectual potential of the black community.

Historically Black Colleges and Universities have done more to make the American Dream a reality for African Americans than has any other set of institutions in our country. These institutions are poised to enter the 21st century, ready to build on this tradition of excellence, achievement, and reverence for education. We can count on them to continue to make vital contributions to our Nation’s success and to ensure that America lives up to our fundamental values of equality and opportunity.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim September 21 through September 27, 1997, as National Historically Black Colleges and Universities Week. I call upon the people of the United States, including government officials, educators, and administrators, to observe this week with appropriate programs, ceremonies, and activities honoring America’s Historically Black Colleges and Universities and their graduates.

IN WITNESS WHEREOF, I have hereunto set my hand this nineteenth day of September, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7026 September 19, 1997 National Farm Safety and Health Week, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7026 of September 19, 1997 111 STAT. 2981
National Farm Safety and Health Week, 1997 By the President of the United States of America A Proclamation

From the earliest days of our Nation, the men and women who work the land have held a special place in America’s heart, history, and economy. Many of us are no more than a few generations removed from forebears whose determination and hard work on farms and fields helped to build our Nation and shape its values. While the portion of our population directly involved in agriculture has diminished over the years, those who live and work on America’s farms and ranches continue to make extraordinary contributions to the quality of our national life and the strength of our economy.

The life of a farmer or rancher has never been easy. The work is hard, physically challenging, and uniquely subject to the forces of nature; the chemicals and labor-saving machinery that have helped American farmers become so enormously productive have also brought with them new health hazards; and working with livestock can result in frequent injury to agricultural workers and their families.

Fortunately, there are measures we can take to reduce agriculture-related injuries, illnesses, and deaths. Manufacturers continue to improve the safety features of fanning equipment; protective clothing and safety gear can reduce the exposure of workers to the health threats posed by chemicals, noise, dust, and sun; training in first-aid procedures and access to good health care can often mean the difference between life and death.

The key to all these safety measures is education. During National Farm Safety and Health Week, I encourage America's farmers, ranchers, and other agricultural workers to remain alert to the dangers inherent in their livelihood. By learning about and using the latest safety features of farming equipment and vehicles, wearing personal protective gear and clothing, and practicing good preventive health care, they can avoid or reduce many of the hazards they face each day. It is particularly important to teach our young people on farms and ranches about proper safety measures, to provide safe areas where children can play, and to monitor their activities. Their experience and maturity must always be considered before they are allowed to participate in farm or ranch work.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim September 21 through September 27, 1997, as National Farm Safety and Health Week. I call upon government agencies, educational institutions, businesses, and professional associations that serve our agricultural sector to strengthen efforts to promote safety and health measures among our Nation’s farm and ranch workers. I ask agricultural workers to take advantage of available technology, training, and information that can help them prevent injury and illness. I also call upon all Americans to observe Wednesday, September 24, 1997, as a day to focus on the risks facing young people on our Nation’s farms and ranches and to reflect 111 STAT. 2982during this week on the bounty that we enjoy thanks to the hard work and dedication of America’s agricultural workers.

IN WITNESS WHEREOF, I have hereunto set my hand this nineteenth day of September, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7027 September 25, 1997 Austrian-American Day, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7027 of September 25, 1997
Austrian-American Day, 1997 By the President of the United States of America A Proclamation

For more than 200 years, the life of our Nation has been enriched and renewed by the many people who have come here from around the world, seeking a new life for themselves and their families. Austrian Americans have made their own unique and lasting contributions to America’s strength and character, and they continue to play a vital role in the peace and prosperity we enjoy today.

As with so many other immigrants, the earliest Austrians came to America in search of religious freedom. Arriving in 1734, they settled in the colony of Georgia, growing and prospering with the passing of the years. One of these early Austrian settlers, Johann Adam Treutlen, was to become the first elected governor of the new State of Georgia.

In the two centuries that followed, millions of other Austrians made the same journey to our shores. From the political refugees of the 1848 revolutions in Austria to Jews fleeing the anti-Semitism of Hitler’s Third Reich, Austrians brought with them to America a love of freedom, a strong work ethic, and a deep reverence for education. In every field of endeavor, Austrian Americans have made notable contributions to our culture and society. We have all been enriched by the lives and achievements of such individuals as Supreme Court Justice Felix Frankfurter; Joel Elias Spingarn, who helped to found the NAACP; psychiatrist and educator Alexandra Adler; lyricist Frederick Loewe, who helped to transform American musical theater; and architects John Smithmeyer and Richard Neutra.

Americans of Austrian descent have also helped to nurture the strong ties of friendship between the United States and Austria, a friendship that has survived the upheaval of two World Wars and the subsequent division of Europe between the forces of East and West. On September 26, 1945, a conference was convened in Vienna among the nine Austrian Federal States that helped to unify the nation and paved the way for recognition by the United States and the Allied Forces of the first postwar Provisional Austrian Government. Setting the date for the first free national elections, this important meeting laid the foundation for the strong, prosperous, and independent Austria we know today.

In recognition of the significance of this date to the relationship between our Nation and the Federal Republic of Austria, and in gratitude for the many gifts that Austrian Americans bring to the life of our 111 STAT. 2983country, it is appropriate that we pause to celebrate Austrian-American Day.

NOW, THEREFORE, I, WILLIAM J. CLINTON, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim Friday, September 26, 1997, as Austrian-American Day. I encourage all Americans to recognize and celebrate the important contributions that millions of Americans of Austrian descent have made—and continue to make—to our Nation’s strength and prosperity.

IN WITNESS WHEREOF, I have hereunto set my hand this twenty-fifth day of September, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7028 September 25, 1997 Gold Star Mother’s Day, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7028 of September 25, 1997
Gold Star Mother’s Day, 1997 By the President of the United States of America A Proclamation

As a free people, Americans have always sought to live our lives in peace: but history’s harsh lessons have taught us that to remain free, we must be prepared for war. At many times and in many ways throughout the year, we remember the millions of selfless Americans whose wartime service helped preserve our freedom and the values we hold dear; and it is fitting that we should do so. But we must also remember that not all of the sacrifices that sustained us were made on the battlefield.

Long after the devastation of war ceases, the destruction left in its wake continues to afflict those who survive. For America's Gold Star Mothers—who have lost a child in the service of our country—the grief is particularly acute. The sons and daughters they cherished through the years, whom they guided and comforted through all the joys and heartaches of childhood and adolescence, were torn from their lives forever with cruel and sudden force. These mothers must live the rest of their lives knowing that the talents and ambitions of their children will never be fulfilled, that each family gathering or celebration will be shadowed by the absence of a dearly loved son or daughter.

Yet despite the enormity of their loss, America’s Gold Star Mothers have continued to do what comes naturally to mothers: to comfort, to nurture, to give of themselves for the benefit of others. Through their devotion to our disabled veterans and their families, their generous community service, and their dedication to preserving the memory of the fallen, Gold Star Mothers remind us in so many poignant ways that true love of country often calls for both service and sacrifice.

For these reasons and more, and in recognition of the special burden that Gold Star Mothers bear on behalf of all of us, we set aside this day each year to honor and thank them and to rededicate ourselves to creating a world in which the kind of sacrifice they have been called upon to make need never be repeated. The Congress, by Senate Joint 111 STAT. 2984Resolution 115 of June 23, 1936 (49 Stat. 1895), has designated the last Sunday in September as “Gold Star Mother's Day” and has authorized and requested the President to issue a proclamation in observance of this day.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim Sunday, September 28, 1997, as Gold Star Mother's Day. I call upon all government officials to display the United States flag on government buildings on this solemn day. I encourage the American people also to display the flag and to hold appropriate meetings in their homes, places of worship, or other suitable places as a public expression of the sympathy and respect that our Nation holds for our Gold Star Mothers.

IN WITNESS WHEREOF, I have hereunto set my hand this twenty-fifth day of September, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7029 October 1, 1997 National Breast Cancer Awareness Month, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7029 of October 1, 1997
National Breast Cancer Awareness Month, 1997 By the President of the United States of America A Proclamation

Every year we dedicate the month of October to focus on breast cancer and to reaffirm our national commitment to eradicate it. But for thousands of American women and their families and friends, breast cancer is a devastating reality that casts a shadow over their lives every day. In this decade alone, nearly half a million women will die of breast cancer, and more than 1.5 million new cases of the disease will be diagnosed.

Our greatest weapon in the crusade against breast cancer is knowledge; knowledge of its causes and knowledge about prevention and treatment. My Administration has established a National Action Plan on Breast Cancer to unite organizations across the country in a collaborative effort to find out more about the disease and how best to respond to it.

The Department of Health and Human Services is taking the lead in this national effort, through education and research at the National Cancer Institute and the Agency for Health Care Policy and Research; through nationwide screening and detection programs at the Centers for Disease Control and Prevention; through certification of mammography facilities by the Food and Drug Administration; through prevention services and treatment by health benefit programs such as Medicare and Medicaid; and through increased access to clinical treatment trials for cancer patients who are beneficiaries in Department of Defense and Department of Veterans Affairs programs. The Department of Defense has also initiated a breast cancer research program to reduce the incidence of breast cancer, increase survival rates, and improve the quality of life for women diagnosed with the disease.

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We can be proud of the progress we have made. One of the most promising recent research achievements is our increased understanding of the role of genetics in the cancer process. We have learned that cancer is a disease of altered genes and altered gene function, and research into the relationship between breast cancer and genes is helping us to better understand the basis of the disease. However, we must ensure that progress in genetic information is used only to advance and to improve the Nation's health—not as a basis for discrimination. That is why this year I have urged the Congress to pass a law that prevents health insurance plans from discriminating against individuals on the basis of genetic information.

High-quality mammography has also proved to be a powerfully effective tool in the effort to detect breast cancer in its earliest, most treatable stage. The National Cancer Institute, the American Cancer Society, and many other professional organizations agree that women in their forties benefit from mammography screening, and earlier this year I was pleased to sign legislation that will help Medicare beneficiaries with cost-sharing for annual screening mammograms. The First Lady has also launched an annual campaign to encourage older women to use the Medicare mammography screening benefits.

We have real cause for celebration during National Breast Cancer Awareness Month this year: recent data show that the breast cancer rate for American women is declining. Heartened by this knowledge, let us reaffirm our commitment to the crusade against breast cancer. Let us ensure that all women know about the dangers of breast cancer, are informed about the lifesaving potential of early detection, receive recommended screening services, and have access to health care services and information. Let us continue to move research forward to improve treatments and find a cure for this disease. Working together, we can look forward to the day when our mothers, wives, daughters, sisters, and friends can live long, healthy fives, free from the specter of breast cancer.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim October 1997 as National Breast Cancer Awareness Month. I call upon government officials, businesses, communities, health care professionals, educators, volunteers, and all the people of the United States to reflect on the progress we have made in advancing our knowledge about breast cancer and to publicly reaffirm our national commitment to controlling and curing this disease.

IN WITNESS WHEREOF, I have hereunto set my hand this first day of October, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7030 October 1, 1997 National Domestic Violence Awareness Month, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7030 of October 1, 1997 111 STAT. 2986
National Domestic Violence Awareness Month, 1997 By the President of the United States of America A Proclamation

In observing the month of October as National Domestic Violence Awareness Month, the American people reaffirm our commitment to prevent and eliminate violence against women. Domestic violence is not simply a private family matter—it is a matter affecting the entire community.

Too many of America’s homes have become places where women, children, and seniors suffer physical abuse and emotional trauma. Domestic violence is a leading cause of injury to women in our country, and it occurs among all racial, ethnic, religious, and economic groups. It is a particularly devastating form of abuse because it wears a familiar face: the face of a spouse, parent, or partner. This violence too often extends beyond the home and into the workplace.

My Administration is committed to ending this violence and to protecting women in all aspects of their lives, whether in the home, in the community, or in the workplace. In 1994, I fought for passage of the Violence Against Women Act, which combined tough new penalties for offenders with funding for much-needed shelters, counseling services, public education, and research to help the victims of violence. The Federal penalties and prevention efforts included in this legislation have improved our ability to deter crimes of domestic violence.

Early in my Administration, as outlined in the landmark Crime Bill, 1 established the Office of Violence Against Women in the Department of Justice to lead our comprehensive national effort to combine tough Federal laws with assistance to States and localities to fight domestic violence and other crimes against women. In February 1996, the Department of Health and Human Services launched the 24-hour-a-day, toll-free National Domestic Violence Hotline. 1–800–797–SAFE, so that those in trouble can find out how to get emergency help, find shelter, or report abuse. To date, the hotline has received more than 118,000 calls from all 50 States, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. We also initiated an Advisory Council on Violence Against Women to bring together experts in the field, including representatives from law enforcement, business, health and human services. and advocates, to focus national attention on successful, multifaceted solutions to combating violence and sexual assault.

We cannot simply rest on past efforts. My Administration is continuing its work to prevent domestic violence and to care for survivors in their communities and workplaces. We are committed to strengthening the health care system’s ability to screen, treat, prevent, and eliminate family violence by supporting training of health care providers and projects to assist those in the substance abuse field to address domestic violence. We are working to improve collaboration between human services providers, advocates, and the criminal justice community to enhance responses to domestic violence. The Department of Health and Human Services is sponsoring projects and programs to coordinate community responses to domestic violence, to focus on youth and children who witness violence, and to link child protection services with 111 STAT. 2987community providers who work with abused women and their children.

Finally, as a further enhancement of my 1995 directive to all Federal departments and agencies to conduct employee awareness campaigns on domestic violence, the Office of Personnel Management is producing a guide to help agency representatives develop programs to prevent and respond to all types of workplace violence against Federal employees, including domestic violence. This guide, drafted by experts in the areas of mental health, investigations, law enforcement, threat assessment, and employee relations, will serve as a useful tool in providing step-by-step information to identify, prevent, and respond to violence so that we can protect those in the Federal work force.

I encourage the private sector to expand its role in preventing and eliminating domestic violence. We must also strengthen coordinated efforts between the public and private sectors to combat domestic violence in the home, the community, and the workplace. These efforts must ensure that no survivor of domestic violence lives in isolation and that the families of victims also have our support. No child should have to live in an abusive home. No woman should live in fear in her home, on the streets, or on the job. Only through a national commitment to this effort can we stop domestic violence and ensure that its survivors are safe.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim October 1997 as National Domestic Violence Awareness Month. I call upon government officials, law enforcement agencies, health professionals, educators, community leaders, and the American people to join together to end the domestic violence that threatens so many of our people.

IN WITNESS WHEREOF, I have hereunto set my hand this first day of October, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7031 October 2, 1997 National Disability Employment Awareness Month, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7031 of October 2, 1997
National Disability Employment Awareness Month, 1997 By the President of the United States of America A Proclamation

America has always been blessed with abundant natural resources; but we sometimes fail to recognize that we have been blessed with rich human resources as well. Millions of people in thousands of professions have built this great country with their labor and made a reality of the American Dream for themselves and their families. But for 20 percent of our population, that dream has too often been deferred or denied. Americans with disabilities have had to overcome barriers in communication, transportation, architecture, and attitude to take their rightful place in our Nation’s work force.

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If America is to continue to grow and prosper, if we are to lead the challenging global economy of the 21st century, we cannot afford to ignore the talents, energy, and creativity of the 54 million Americans with disabilities. Thanks to the Americans with Disabilities Act, we are making significant progress in eliminating workplace discrimination and ensuring equal job opportunities for people with disabilities. This landmark civil rights legislation, enacted 7 years ago with bipartisan support, has opened doors and brought down barriers across our country for people with disabilities. It has empowered them with the opportunity to become employees, taxpayers, and active participants in the life of their communities.

To build on this progress, government at every level must work in partnership with business, labor, and community organizations to ensure that all Americans, regardless of disability, can live and learn and work alongside their fellow citizens. Only when we guarantee the inclusion, empowerment, and independence of all our people will America fulfill its great promise of freedom and opportunity.

To recognize the full potential of individuals with disabilities and to encourage all Americans to work toward their full integration into the work force, the Congress, by joint resolution approved August 11, 1945, as amended (36 U.S.C. 155), has designated October of each year as “National Disability Employment Awareness Month.”

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim October 1997 as National Disability Employment Awareness Month. I call upon government officials, educators, labor leaders, employers, and the people of the United States to observe this month with appropriate programs and activities that reaffirm our determination to achieve the full integration into the work force of people with disabilities.

IN WITNESS WHEREOF, I have hereunto set my hand this second day of October, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7032 October 3, 1997 Fire Prevention Week, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7032 of October 3, 1997
Fire Prevention Week, 1997 By the President of the United States of America A Proclamation

Of all the disasters that confront Americans every year, few cause more loss of life and property than fire. Across the country each day, fire threatens our communities, our livelihoods, and our lives. Last year alone, almost 5,000 men, women, and children perished in fires, and nearly 80 percent of these deaths occurred in homes. This tragic statistic is a call to action for all of us. not only to remain vigilant in our efforts to prevent fires, but also to learn how to react quickly and sensibly when fires occur.

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Many people do not understand the speed at which fire can spread, the intensity of its heat, or the toxic power of its smoke. Because a quick, decisive response often means the difference between life and death, it is important to learn about fire, to recognize how deadly a threat it is, and to react to it immediately. The National Fire Protection Association, in partnership with the Federal Emergency Management Agency and our Nation’s fire services, has selected “Know When to Go! React Fast To Fire!” as the theme of this year’s Fire Prevention Week. This theme reinforces a simple but essential element of fire safety: escape planning.

Because approximately 80 percent of last year's fatal fires occurred in the home, every family should develop a home escape plan. If a smoke or fire alarm sounds, everyone must react quickly. When away from home, we need to make it a habit to locate the nearest exit in any building we occupy. Most important, we must never reenter a burning building.

By following these basic safety rules, we can save lives and reduce the risks to our Nation's firefighters. Every 16 seconds, a fire department responds to a fire somewhere in the United States. Last year, thousands of firefighters were injured, and 92 made the ultimate sacrifice in the line of duty. Our Nation will acknowledge the extraordinary dedication of these valiant men and women by paying tribute to America's career and volunteer firefighters on Sunday, October 5, 1997, at the National Fallen Firefighters Memorial Service in Emmitsburg, Maryland.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim October 5 through October 11, 1997, as Fire Prevention Week. I encourage the people of the United States to take an active role in fire prevention not only during this week, but throughout the year. I also call upon all Americans to honor the courageous members of our Nation’s fire and emergency services by learning about the dangers posed by fire and by preparing their friends and family members to react immediately and safely to fires when they occur.

IN WITNESS WHEREOF, I have hereunto set my hand this third day of October, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7033 October 6, 1997 Child Health Day, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7033 of October 6, 1997
Child Health Day, 1997 By the President of the United States of America A Proclamation

For children, childhood seems to last forever; but for adults—particularly for those of us who are parents—it passes in the blink of an eye. The little girl smiling at us from her tricycle and the little boy running to catch the school bus will soon be driving away to their first jobs. 111 STAT. 2990 One of the greatest gifts we can offer our children while they are still in our care is a healthy start in life.

We are making tremendous progress as a nation in helping more children get that healthy start. This year I signed into law historic legislation to extend health care coverage to millions of uninsured children. This $24 billion initiative over 5 years is the largest investment in children’s health since the creation of Medicaid in 1965. On October 1, the Federal Government and the States began a partnership to help provide meaningful health insurance to children whose families earn too much for Medicaid but too little to afford private coverage.

This new initiative will take an enormous step toward improving the health of our Nation's children. In 1995, approximately 10 million of them were not covered by health insurance, and they were either ineligible for or not enrolled in publicly financed medical assistance programs. Last year, another 800,000 uninsured children joined their ranks. These children are less likely to receive the primary care services they need to maintain good health, and they are at risk of receiving lower quality care. Too often they become trapped in a tragic downward spiral—poor health keeps them out of school, keeps them from pursuing their studies with energy and enthusiasm, and often keeps them from acquiring the knowledge and self-esteem they need to reach their full potential. With this new children's health initiative, we can provide millions of children the coverage they need to grow up healthy and strong.

We are making progress in other areas, as well. Thanks to advances in medical research and our increasing knowledge about prevention and the importance of good nutrition, many childhood diseases and illnesses can now be averted. Funding for childhood immunization has doubled since 1993, and immunization rates are at an all-time high. In addition, we recently announced an important Food and Drug Administration regulation requiring manufacturers to do studies on pediatric populations for new prescription drugs—and those currently on the market—to ensure that our prescription drugs have been adequately tested for the unique needs of children. We have dramatically increased participation in the Women, Infants and Children Supplemental Nutrition Program, providing nutrition packages and information and health referrals to more than 7 million infants, children, and pregnant women. With the enactment of the Kassebaum-Kennedy bill last year, we have helped millions of children keep their healthcare coverage when their parents change or lose jobs.

We are also taking strong actions to prevent our children from smoking. Each day 3,000 children become regular smokers and 1,000 of them will die from a tobacco-related illness. Last year, my Administration issued guide-lines to eliminate easy access to tobacco products and to prohibit companies from directing advertising towards children.

To acknowledge our profound responsibility to nurture the health and development of America’s children, the Congress, by joint resolution approved May 18, 1928. as amended (36 U.S.C. 143), has called for the designation of the first Monday in October as “Child Health Day” and has requested the President to issue a proclamation in observance of this day.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim Monday. October 6, 1997, as 111 STAT. 2991Child Health Day. I call upon my fellow Americans to join me on that day. and every day throughout the year, in strengthening our national commitment to the well-being of our children.

IN WITNESS WHEREOF, I have hereunto set my hand this sixth day of October, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7034 October 6, 1997 German-American Day, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7034 of October 6, 1997
German-American Day, 1997 By the President of the United States of America A Proclamation

America has always drawn its strength from the millions of people who have come here in search of freedom and the opportunity to live out their dreams. Men and women of different nationalities, different races, and different religions have made their own rich and unique contributions to our national life.

From their arrival at Jamestown in 1607 until the present day, Germans have been among the largest ethnic groups to make their home in our country. Like so many others, the earliest German settlements in America were founded by men and women in search of religious liberty. William Penn invited a group of German Mennonites to Pennsylvania, which was to remain a center of German settlement during the Colonial period. Other German communities were founded in New Jersey and New York, as well as in Virginia’s Shenandoah Valley, the Carolinas, and Georgia. In the 19th century, German pioneers began to settle in the Midwest and West, and today a quarter of our Nation’s population can trace its ancestry to German origins.

Germans and German Americans have profoundly influenced every facet of American life. Great soldiers, such as General Baron von Steuben in our Revolutionary War and General Norman Schwarzkopf in the Gulf War, have fought to preserve our freedom and defend America’s interests. Scientists such as Albert Einstein and Wernher von Braun have immeasurably broadened our horizons, as have artists like Albert Bierstadt, Josef Albers, Ernestine Schumann-Heink, Lillian Blauvelt, and Paul Hindemith. And generations of German Americans, with their energy, creativity, and strong work ethic, have enriched the economic and commercial life of the United States. All Americans have benefited greatly from the labor, leadership, talents, and vision of Germans and German Americans, and it is fitting that we set aside this special day to acknowledge their many contributions to our liberty, culture, and democracy.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim Monday, October 6, 1997, as German-American Day. I encourage all Americans to recognize and celebrate the many gifts that millions of people of German ancestry have brought to our national life.

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IN WITNESS WHEREOF, I have hereunto set my hand this sixth day of October, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7035 October 9, 1997 Leif Erikson Day, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7035 of October 9, 1997
Leif Erikson Day, 1997 By the President of the United States of America A Proclamation

Americans have always been a people marked by a spirit of discovery. Generations of American explorers and pioneers have pushed against the boundaries of the known world, eager to see what lies beyond the next horizon. We come by that spirit naturally, for millions of us are descended from men and women of courage, vision, and independence who left their native lands to seek new possibilities in a new world.

One of the earliest of these was Leif Erikson. Almost a thousand years ago, braving the cold and unforgiving North Atlantic, he set out on a voyage that would ultimately bring him to this continent and a lasting place in history. But Leif Erikson is more than a symbol of the pioneer spirit. He is also a powerful reminder of the long and proud history of the sons and daughters of Iceland, Norway, Sweden, Denmark, and Finland who endured the hardships of the American frontier to build a new life for themselves and their families. These immigrants from the Nordic countries, and their descendants, have contributed immeasurably to America's strength, character, prosperity, and independent spirit.

Today, the people of Iceland, Norway, Sweden, Denmark, and Finland are our partners in building a new Europe. Committed to democracy and self-determination, they have always reached out to those struggling for freedom and equality. We are proud to join them in fostering the integration of the Baltic countries of Estonia, Latvia, and Lithuania into the Western family of nations. We also look forward to joining our Nordic friends in celebrating in the year 2000 the millennial anniversary of Leif Erikson’s momentous voyage to our shores. It is fitting that we should pay special tribute to Leif Erikson—son of Iceland, grandson of Norway—as we begin our own uncharted journey of discovery into the new millennium that stretches before us.

In honor of Leif Erikson and of our Nordic-American heritage, the Congress, by joint resolution approved on September 2, 1964 (Public Law 88–566), has authorized and requested the President to proclaim October 9 of each year as “Leif Erikson Day.”

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim October 9, 1997, as Leif Erikson Day. I encourage the people of the United States to observe this occasion with appropriate ceremonies and activities commemorating our rich Nordic-American heritage.

111 STAT. 2993

IN WITNESS WHEREOF, I have hereunto set my hand this ninth day of October, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7036 October 9, 1997 General Pulaski Memorial Day, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7036 of October 9, 1997
General Pulaski Memorial Day, 1997 By the President of the United States of America A Proclamation

In times of peace and at moments of great crisis, America has been blessed with the steadfast support of friends from other nations. Few have proved their friendship with more courage and generosity than Casimir Pulaski, who paid for America’s independence with his own life.

As a son of Poland, Pulaski knew well the desire for freedom and self-determination. He fought bravely beside his father and brothers in his native land, defending Poland from the aggression of neighboring empires with such skill and valor that he was known throughout Europe for his military exploits. Ultimately outnumbered by opposing forces, he escaped to France, where he met Benjamin Franklin and offered his services in behalf of the American Revolution.

Upon his arrival in America, Pulaski told General Washington that he had come to defend liberty and “to live or die for her.” True to his word, he fought valiantly as a brigadier general in our Continental Army and made the ultimate sacrifice for our Nation’s freedom during the siege of Savannah.

More than two centuries later, Americans and Poles alike remember with pride and gratitude the outstanding service General Pulaski gave to both his native and adopted lands. Today the United States and Poland enjoy freedom, prosperity, and the prospect for a bright future as allies in NATO, thanks to the unwavering commitment of patriots and heroes like Casimir Pulaski.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim Saturday, October 11, 1997, as General Pulaski Memorial Day. I encourage all Americans to commemorate this occasion with appropriate programs and activities paying tribute to Casimir Pulaski and his contributions to the cause of American freedom.

IN WITNESS WHEREOF, I have hereunto set my hand this ninth day of October, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7037 October 10, 1997 White Cane Safety Day, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7037 of October 10, 1997 111 STAT. 2994
White Cane Safety Day, 1997 By the President of the United States of America A Proclamation

As we stand at the dawn of the 21st century, new technologies are rapidly changing and improving the lives of Americans. For one group of Americans in particular—those who are blind or visually impaired— these technologies have opened doors to unparalleled opportunities. Blind Americans now can more readily access information of all kinds, and these advances have brought important improvements to the education, careers, and daily lives of blind and visually impaired people.

In this time of extraordinary progress, however, the simple yet profoundly useful white cane remains an indispensable tool and symbol of independence that has afforded countless blind and visually impaired citizens the opportunity to pursue the American Dream. And so, as we all share in a new era of expanded technological innovations that improve the lives of all of our Nation’s citizens, we also celebrate the white cane for its ability to empower and recognize it as the embodiment of freedom.

As a Nation, let us also reassert our commitment to ensuring equal opportunity, equal access, and full participation of citizens with disabilities in our community life. This year, we celebrated the reauthorization of the Individuals with Disabilities Education Act, reaffirming our belief that all students can learn and must have the opportunities and resources necessary to do so. And we must continue to enforce vigorously the Americans with Disabilities Act, so that our blind and visually impaired fellow citizens enjoy equal opportunity, access to public and private services and accommodations, and a workplace free of discrimination.

To honor the numerous achievements of blind and visually impaired citizens and to recognize the significance of the white cane in advancing independence, the Congress, by joint resolution approved October 6, 1964, has designated October 15 of each year as “White Cane Safety Day.”

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim October 15, 1997, as White Cane Safety Day. I call upon the people of the United States, government officials, educators, and business leaders to observe this day with appropriate programs, ceremonies, and activities.

IN WITNESS WHEREOF, I have hereunto set my hand this tenth day of October, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7038 October 10, 1997 National School Lunch Week, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7038 of October 10, 1997 111 STAT. 2995
National School Lunch Week, 1997 By the President of the United States of America A Proclamation

Each year during the month of October, we set aside a week to focus on the importance of the National School Lunch Program and its contributions to the health and well-being of America’s schoolchildren. Through this program, established more than 50 years ago by President Truman, young people learn firsthand about healthful dietary habits and how to make wise choices regarding the foods they eat. And for millions of children, many of whom come from families in need, their school lunch is the most nutritious meal they will eat during the day.

When President Kennedy proclaimed the first National School Lunch Week in 1963, some 68,000 schools were serving lunches to 16 million children each day. Today, the program is available in more than 94,000 schools across the country, and 26 million students participate daily. This dramatic growth proves that the program continues to meet a significant need in local communities across the Nation, and its success admirably reflects the hard work and commitment of school food-service professionals, as well as the support and technical assistance provided by State administrators.

The National School Lunch Program also reflects our profound concern for the well-being of our young people. By providing them with wholesome, nutritious meals day in and day out, we are helping to improve our children's overall health, increase their learning capacity, lengthen their attention span, and promote healthful dietary habits that will serve them well for a lifetime.

All of these accomplishments are made possible by the many dedicated food-service professionals, administrators, educators, parents, business and community leaders, and other concerned individuals at the local, State, and Federal levels who work in partnership to ensure the effectiveness of the National School Lunch Program. We must strive to build on their achievements so that this vital program will continue to meet the needs of America’s children into the next century.

In recognition of the contributions of the National School Lunch Program to the nutritional well-being of children, the Congress by joint resolution of October 9, 1962 (Public Law No. 87–780), has designated the week beginning the second Sunday in October of each year as “National School Lunch Week" and has requested the President to issue a proclamation in observance of that week.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim October 12 through October 18, 1997, as National School Lunch Week. I call upon all Americans to recognize those individuals whose efforts contribute to the success of this program and to observe this week with appropriate programs and activities.

IN WITNESS WHEREOF, I have hereunto set my hand this tenth day of October, in the year of our Lord nineteen hundred and ninety-seven, 111 STAT. 2996and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7039 October 10, 1997 Columbus Day, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7039 of October 10, 1997
Columbus Day, 1997 By the President of the United States of America A Proclamation

The life and achievements of Christopher Columbus demonstrate how powerful and lasting an influence one individual can have on the course of human history. Although great explorers reached the shores of this continent both before and after Columbus, few have captured the American imagination as he has. Perhaps because we have always been an adventurous people, eager for challenge and change, we feel a special affinity for this extraordinary man who left the safety of known waters to pursue his vision across the ocean to the threshold of a new world.

Although his momentous voyages across the Atlantic took place more than 500 years ago, their impact can still be felt today. Columbus’ discoveries in the West Indies brought about substantive and continuing contact between the peoples of the Old World and the New, contact that gave rise to misunderstandings and conflicts that we still seek to reconcile today. He also made possible the exploration and settlement of North America and opened the door to our continent for generations to follow—people of every race and culture and ethnic origin, who have given our Nation its rich and unique diversity. Christopher Columbus, a son of Italy whose bold enterprise was made possible by the Spanish crown, holds a special place in the hearts of Americans of Italian and Spanish heritage. But, as we prepare for our own voyage of discovery into the next millennium, all Americans can draw inspiration from the character and accomplishments of Columbus. With vision, courage, imagination, and optimism, we can create a future bright with promise and a new world where all of us can pursue our dreams.

In recognition of the enduring achievements of Christopher Columbus, the Congress, by joint resolution of April 30, 1934 (48 Stat. 657), and an Act of June 28, 1968 (82 Stat. 250), has requested the President to proclaim the second Monday in October of each year as “Columbus Day.”

NOW, THEREFORE, J, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim October 13, 1997, as Columbus Day. I call upon the people of the United States to observe this day with appropriate ceremonies and activities. I also direct that the flag of the United States be displayed on all public buildings on the appointed day in honor of Christopher Columbus.

IN WITNESS WHEREOF, I have hereunto set my hand this tenth day of October, in the year of our Lord nineteen hundred and ninety-seven, 111 STAT. 2997and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7040 October 10, 1997 National Children’s Day, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7040 of October 10, 1997
National Children’s Day, 1997 By the President of the United States of America A Proclamation

With the birth of every child, the world becomes new again. Within each new infant lies enormous potential—potential for loving, for learning, and for making life better for others. But this potential must be nurtured. Just as seeds need fertile soil, warm sunshine, and gentle rain to grow, so do our children need a caring environment, the security of knowing they are loved, and the encouragement and opportunity to make the most of their God-given talents. There is no more urgent task before us, as a people and as a Nation, than creating such an environment for America’s children.

One of the surest ways to do so is to strengthen American families and help parents in their efforts to raise healthy, happy children. My Administration has worked hard to give parents the tools they need to fulfill their crucial responsibilities. We have sought to put tobacco and guns out of the reach of children. We are improving the quality of our children’s schools by making a national commitment to high academic and teaching standards. Recognizing the importance of a child's early years to his or her development, we have expanded Head Start and established Early Head Start for low-income families with children 3 years old or younger. We have made it easier for millions of parents to take time off to be with a sick child without losing their jobs, and to keep their health insurance when they change jobs. We have protected Medicaid coverage for 36 million Americans, including about 20 million children, and the Balanced Budget Act I recently signed into law will provide meaningful health care coverage to millions more uninsured children.

But there is still much to be accomplished if we are to ensure that America’s children grow up to meet their fullest potential. Our next important goal must be to build upon our efforts and improve the quality and affordability of child care in our Nation. With more people in the work force, with more single-parent homes, and with more families in which both parents have to work to make ends meet, millions of American children are already in some form of day care, and the demand for affordable, quality child care is growing. Later this month, the First Lady and I will host the White House Conference on Child Care to work with and learn from other parents, child care providers and experts, business leaders, and economists. Together we will focus on the best means to increase the quality, availability, and affordability of child care in our Nation.

As we observe National Children’s Day this year, let us recommit ourselves to creating a society where parents can raise healthy, happy children; where every newborn is cherished, where every child is en-111 STAT. 2998couraged to succeed, and where all our young people are free to pursue their dreams.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim October 12, 1997, as National Children’s Day. I urge all Americans to express their love and appreciation for children on this day and on every day throughout the year. I invite Federal officials. State and local governments, and particularly all American families to join together in observing this day with appropriate ceremonies and activities to honor our Nation’s children.

IN WITNESS WHEREOF, I have hereunto set my hand this tenth day of October, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7041 October 15, 1997 International Rural Women’s Day, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7041 of October 15, 1997
International Rural Women’s Day, 1997 By the President of the United States of America A Proclamation

Our world has been continually uplifted and renewed by the contributions of women. Women of courage and conscience, women of strength and compassion, women of vision and talent have enriched every aspect of international society. In our own Nation, the names of such extraordinary individuals as Harriet Tubman, Susan B. Anthony, Jane Addams, Rosa Parks, Dolores Huerta, and so many more, are etched on our history and in our hearts. But there are millions of other women who live and work among us whose names will never be known, but whose efforts and energy contribute profoundly to the quality of our lives. Rural women are numbered among these many quiet heroes.

Today rural women comprise more than one-quarter of the world’s population, and they form the basis of much of the world’s agricultural economy. In the United States, working on farms and ranches, they play a vital part in ensuring a healthy, safe, and abundant supply of food and fiber for our people. In developing countries, as small farmers, laborers, and entrepreneurs, rural women help produce most of the food, create many of the jobs, and manage most of their countries’ natural resources. While millions of rural women worldwide live below the poverty level, struggling to survive with scarce resources and little training and education, they still manage to feed their families and contribute to their communities.

When the international community came together in Beijing in 1995 for the Fourth United Nations World Conference on Women, rural women made their voices heard by world leaders, and their hard work and sacrifice were at last recognized by people across the globe. Next year, when the United States hosts the Second World Conference on Women in Agriculture, we will continue to focus on the status of rural women and their contributions to our world.

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NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim October 15, 1997, as International Rural Women's Day in the United States. I call upon the American people to observe this day with appropriate programs and activities in recognition of the extraordinary contributions rural women make to the quality of our lives, both in America and around the world.

IN WITNESS WHEREOF, I have hereunto set my hand this fifteenth day of October, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7042 October 17, 1997 National Forest Products Week, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7042 of October 17, 1997
National Forest Products Week, 1997 By the President of the United States of America A Proclamation

America’s forests are a precious resource, making numerous rich contributions not only to the natural splendor of our Nation, but also to the well-being of our people. Whether part of the vast acreages that make up our industrial, State, and National forests or rural woodlots and urban forests, they offer us clean water and air, priceless wildlife habitat and fisheries, welcome settings for recreation, and breathtaking beauty. Our forests also provide us with more tangible products essential to everyday living: wood and paper products for our homes, schools, and offices, and even medicines and food.

While the wood products we harvest from our forests can be so durable that they last for centuries, forest ecosystems themselves are very fragile. America’s growing population and urban expansion are putting ever-increasing demands on forest lands and resources. We must work together to devise imaginative forest management approaches that will allow us to preserve and cultivate healthy forest ecosystems, meet the need for forest products, provide jobs for those who depend on forests for their livelihood, and continue to offer Americans enjoyable recreational opportunities.

Fortunately, forest research is equipping us with vital knowledge that can help us to balance the many and varied demands on our woodlands. Thanks to such research, we are now using new products and innovative technologies and employing new recycling methods that not only extend the available supply of raw materials, but also help us to process those materials more efficiently and with fewer harmful byproducts. This use of science to balance the needs of our people both for forest products and a healthy environment will help us to achieve our goal of sustainable forest management.

All of us are indebted to past generations of Americans whose vision and generosity preserved so many of our Nation’s great forests for our use and pleasure. Now it falls to us to continue their wise stewardship 111 STAT. 3000so that we may pass on to future generations this priceless natural legacy.

In recognition of the central role our forests play in the long-term welfare of our Nation, the Congress, by Public Law 86–753 (36 U.S.C. 163), has designated the week beginning on the third Sunday in October of each year as “National Forest Products Week” and has authorized and requested the President to issue a proclamation in observance of this week.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim October 19 through October 25, 1997, as National Forest Products Week. I call upon all Americans to observe this week with appropriate ceremonies and activities.

IN WITNESS WHEREOF, I have hereunto set my hand this seventeenth day of October, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7043 October 17, 1997 National Character Counts Week, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7043 of October 17, 1997
National Character Counts Week, 1997 By the President of the United States of America A Proclamation

The roots of America’s greatness are embedded in the character of its citizens. From our Founders’ passion for justice and equality to the social consciousness and humanitarian spirit of today’s citizens, the character of our people has inspired the world. Undeniably, character does count for our citizens, our communities, and our Nation, and this week we celebrate the importance of character in our individual lives and in the life of our country.

Instilling sound character in our children is essential to maintaining the strength of our Nation into the 21st century. The core ethical values of trustworthiness, fairness, responsibility, caring, respect, and citizenship form the foundation of our democracy, our economy, and our society. These qualities are not innate but learned, and we must ensure that we nurture them—both through our words and our example—in our Nation’s young people.

More than any other institution, the family is the cradle of character, giving children their first crucial lessons in attitude and behavior. In today’s complex society, where children are subject to pressures and negative influences rarely experienced by earlier generations, parents face great challenges as they strive to impart to their children the values that will help them become caring and responsible members of society.

My Administration has worked hard to give parents new tools to help them fulfill their important responsibilities. We worked to require V- chips on all new televisions to give parents greater control over what their children watch; we collaborated with the television industry to encourage the airing of more educational programming for children; 111 STAT. 3001and we negotiated a breakthrough agreement with the entertainment and broadcast industries to create a voluntary ratings system that will help parents identify programs containing material inappropriate for children. Our proposed funding for the Anti-Gang and Youth Violence Strategy will provide for after-school initiatives in communities across the country to help keep young people occupied in wholesome activities, off the streets, and out of trouble while their parents are at work.

Schools also have an important role in educating our young people about the difference between right and wrong. My Administration has recognized this by creating partnerships with the States to help our schools do a better job of teaching character to America’s students. Our push for rigorous standards and our promise to open the doors of college to all students who work hard let students know that good character really does count and will be rewarded with expanded opportunity. We also should encourage and commend the schools across our country that have begun to incorporate volunteer service as a curriculum requirement, teaching students the important life lessons of sharing, compassion, and civic responsibility.

Developing strong values in America’s children requires the participation of all our people. As we observe this special week, I ask that all Americans demonstrate in their personal and public lives, and teach actively to our country’s children, the high ethical standards that are essential to good character and to the continued success of our Nation.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim October 19 through October 25, 1997, as National Character Counts Week. I call upon the people of the United States, government officials, educators, religious, community, and business leaders, and the States to commemorate this week with appropriate ceremonies, activities, and programs.

IN WITNESS WHEREOF, I have hereunto set my hand this seventeenth day of October, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7044 October 23, 1997 United Nations Day, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7044 of October 23, 1997
United Nations Day, 1997 By the President of the United States of America A Proclamation

In April of 1945, representatives of 50 nations gathered in San Francisco for the United Nations Conference on International Organization. The leaders assembled for that historic meeting were not idle dreamers. They were experienced statesmen and hard realists, horrified by the staggering destruction and human misery wrought by two world wars, and convinced that the conduct of international affairs must change. The United Nations Charter that emerged from their deliberations was a document both wise and hopeful—wise in its recognition that lasting 111 STAT. 3002peace comes only with respect for the dignity and value of every human being, and hopeful in its determination to protect future generations from the affliction of war.

As with all human enterprises, the United Nations has had its share of failure and success in the 5 decades since its Charter was ratified. But no one can dispute that the U.N. has worked to make the world a better place. Human suffering knows no borders, and men and women of goodwill from nations across the globe have dedicated their skills and energy to U.N. programs committed to relieving such suffering. For half a century, the organizations and programs of the United Nations have fought hunger and disease, defended human rights, provided disaster relief, taught sustainable development, and cared for refugees.

The United Nations has also fulfilled its mission as a force for peace in the world. For 50 years, it has helped to avert another world war and prevent nuclear holocaust. Today, it continues working to keep nations like El Salvador, Haiti, Cyprus, and Bosnia from further bloodshed. It serves as a voice for the international community in defining acceptable behavior and punishing those states that ignore the most basic global norms of conduct. And the United Nations has become a vital international crossroads, where men and women of every race, culture, religion, and ethnic background can come together to share their common hopes and dreams.

The leaders who gathered in San Francisco so many years ago would scarcely recognize our world today. For the first time in history, more than half the world’s people freely choose their own governments. Free markets are expanding, bringing with them exciting opportunities for growth and prosperity. The satellite and the microchip have revolutionized human communication, changing forever the way we live and work and interact. In this new global community, the U.N. mission is as important as it was in the waning days of World War II—pursuing peace and security, promoting human rights, and striving to help move people from poverty to prosperity.

We in the United States must continue our efforts to help the United Nations rise to the challenges of our time. Thanks to an ongoing reform process, we have seen substantial improvements in management, administrative accountability, and the setting of priorities by the U.N. This progress has set the stage for broader efforts to ensure that the United Nations is fully prepared to continue to pursue the goals laid down in its Charter.

As we observe United Nations Day this year, let us remember all those whose foresight and determination created this great international institution, and let us thank all those who, with courage and conviction, continue to fulfill its vital missions.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim Friday, October 24, 1997, as United Nations Day. I encourage all Americans to acquaint themselves with the activities and accomplishments of the United Nations, and to observe this day with appropriate ceremonies, programs, and activities furthering the goal of international cooperation.

111 STAT. 3003

IN WITNESS WHEREOF, I have hereunto set my hand this twenty- third day of October, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7045 October 24, 1997 National Consumers Week, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7045 of October 24, 1997
National Consumers Week, 1997 By the President of the United States of America A Proclamation

Americans have always had a passion for fairness. It imbues the great charters on which our Nation is founded, and it is the cornerstone of our legal system. Fairness must also form the foundation of the American economy, an economy in which consumers rightly expect a “fair shake”: honest transactions and safe, dependable goods and services.

Our economy has changed enormously during the past 200 years, developing from the agrarian system of the 18th century through the Industrial Revolution of the 19th century to the information revolution of our own era. Today, technological innovation is rapidly transforming our relationships with the marketplace and the goods and services we buy. However, despite these dramatic changes, basic consumer values remain the same. Consumers still expect quality and service for their money; they still place great importance on the safety and reliability of the products they buy; and they still want to know that businesses will meet these expectations.

In the days of Adam Smith, when products were less complicated and their quality more easily discerned, caveat emptor was the ruling principle of the marketplace. In today's economy, where the microchip has dramatically altered what we buy and how and where we buy it, products and services are much more complex, and consumers need better information and greater protection to ensure that the marketplace continues to treat them fairly.

The Consumer Bill of Rights, first articulated in President Kennedy’s 1962 Special Message to Congress on Protecting the Consumer Interest, has evolved with our economy to meet the changing needs of the American people. Consumers today have the right to safety, the right to information, the right to choice, the right to be heard, the right to consumer education, and the right to service. They also deserve security for any personal information provided during the conduct of a transaction, whether in person or on the Internet. As we observe National Consumer Week, I urge the American people to learn more about their rights as responsible consumers and to reward those businesses that continue to give them a fair shake.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim October 25 through October 31, 1997, as National Consumers Week. I call upon government officials, industry leaders, and the American people to recognize the vital relationship between our economy and our citizenry, 111 STAT. 3004and to join me in reaffirming our commitment to fairness in the marketplace.

IN WITNESS WHEREOF, I have hereunto set my hand this twenty-fourth day of October, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7046 October 30, 1997 National Employer Support of the Guard and Reserve Week, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7046 of October 30, 1997
National Employer Support of the Guard and Reserve Week, 1997 By the President of the United States of America A Proclamation

As we approach this century’s end, many of the blocs and barriers that divided the world for 50 years largely have fallen away. All around the world, with America’s help, nations are moving from conflict to cooperation. However, we still face challenges that have taken on new and dangerous dimensions: ethnic and religious violence, aggression by outlaw states, the illegal drug trade, and threats from international terrorism and weapons of mass destruction. The National Guard and Reserve play a vital role in the response of America’s Armed Forces to this broad spectrum of challenges to our national security, and they are an indispensable part of the effort to promote peace and democratic values.

While most Americans understand and deeply appreciate the strategic and military value of our National Guard and Reserve forces, too often we fail to recognize or acknowledge the important contributions of their civilian employers. When called upon to share their greatest resource—employees serving as citizen-soldiers—these employers subordinate their own interests for the good of our country, even when they may incur financial hardship and organizational disruption. It is only because of the willingness by employers to place our Nation’s wellbeing above their own that our National Guard and Reserve are able to provide mission-ready and accessible forces to help preserve our freedom and protect our national interests. The generosity of these employers is key to enabling Reserve components to play an ever greater and more diverse role in our country’s Armed Forces. By setting aside this special time to honor the sacrifice of our Nation's employers, we express our heartfelt appreciation to these patriots for employing our citizen-soldiers, making it possible for them to serve, and helping to keep America strong, secure, and free.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim November 2 through November 8, 1997, as National Employer Support of the Guard and Reserve Week. I encourage all Americans to join me in expressing our heartfelt thanks to the civilian employers of the members of our National Guard and Reserve for their extraordinary sacrifices on behalf of our Nation. I also call upon State and local officials, private 111 STAT. 3005organizations, businesses, and all military commanders to observe this week with appropriate ceremonies and activities.

IN WITNESS WHEREOF, I have hereunto set my hand this thirtieth day of October, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7047 November 1, 1997 National American Indian Heritage Month, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7047 of November 1, 1997
National American Indian Heritage Month, 1997 By the President of the United States of America A Proclamation

American Indians and Alaska Natives have played a vital role in the life of our country, and their many contributions have enhanced the freedom, prosperity, and greatness of America today. In celebrating National American Indian Heritage Month, we reaffirm our country’s commitment to remember those contributions and to honor the unique heritage of our continent's first inhabitants.

This special observance also reflects our continuing commitment to American Indian and Alaska Native tribal governments as an integral part of the social, political, and economic fabric of the United States. The framers of our Constitution incorporated Indian nations into the political and legal framework of this country, forever joining the destiny of the tribal nations with that of the American people. By this action. our founders charged themselves and future generations with the moral obligation to guard the rights and fundamental liberties of our country’s tribal peoples as zealously as we protect the rights of all Americans.

As we enter the next millennium, we have an exciting opportunity to open a new era of understanding, cooperation, and respect among all of America’s people. We must work together to tear down the walls of separation and mistrust and build a strong foundation for the future. To accomplish this, we must strengthen tribal governments, improve the quality of education for American Indian and Alaska Native youth, build stable, diversified economies in tribal communities, create high- wage jobs, and ensure that all our citizens have the skills, education, and opportunities they need to reach their full potential.

The government-to-government relationship between the tribes and the United States embodies the fundamental American belief that people of widely varied and diverse cultural backgrounds can join together to build a great country. Such greatness can be sustained, however, only so long as we honor the ideals and principles upon which America is founded and abide by our commitments to all our people. In recognition of America’s moral and legal obligations to American Indians and Alaska Natives, and in light of the special trust relationship between tribal governments and the Government of the United States, we celebrate National American Indian Heritage Month.

111 STAT. 3006

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim November 1997 as National American Indian Heritage Month. I urge all Americans, as well as their elected representatives at the Federal, State, local, and tribal levels, to observe this month with appropriate programs, ceremonies, and activities.

IN WITNESS WHEREOF, I have hereunto set my hand this first day of November, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7048 November 3, 1997 National Adoption Month, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7048 of November 3, 1997
National Adoption Month, 1997 By the President of the United States of America A Proclamation

Most American children are blessed with loving, stable families. But, tragically, in our country today there are too many children whose parents are unwilling or unable to care for them. While foster care offers these children a safe and nurturing temporary haven in their time of greatest need, as many as 100,000 foster care kids will need permanent homes in the next few years. Many of these children have special needs and require the security and stability of an adoptive family to develop their full potential. Adoption allows these and other children to have the permanent homes they deserve, and it enables many dedicated adults to experience the joys and rewards of parenting.

My Administration is working hard to find ways to help encourage adoption. On December 14, 1996, I issued a Memorandum to the Secretaries of Health and Human Services, the Treasury, Labor, and Commerce and to the Director of the Office of Personnel Management, directing them to promote efforts to both increase the number of children who are adopted or permanently placed each year and to move children more rapidly from foster care to permanent homes. I also urged them to increase public awareness about the children waiting for permanent families and to encourage all Americans to consider the rewards of adoption.

I challenged the members of my Administration to work with States, communities, and civic leaders to create a plan for doubling the number of adoptions and permanent placements for children to 54,000 by the year 2002. And on February 14, 1997, the Adoption 2002 report, outlining changes in policies and practices necessary to reach this goal, was released. Since then, we have been actively implementing the recommendations included in the report, and States are reviewing data and submitting numerical targets for adoption and guardianships to be completed by the year 2002. The Office of Personnel Management has published a guide for Federal workers interested in adopting, and the Department of Health and Human Services is preparing to make the first annual Adoption 2002 Excellence awards later this year. Finally, 111 STAT. 3007the Congress is considering historic legislation that would provide the resources and statutory authority for financial incentives, technical assistance, and improved judicial decision-making for children in foster care.

As a Nation, we have before us an opportunity to make a real difference in the lives of our most vulnerable children. We must continue to promote public awareness of the need for adoptive families and to help families make the choice to provide loving, permanent homes for the many children who otherwise must continue to wait. We must also strengthen our support of those families who do choose to adopt. As we observe National Adoption Month, we reaffirm our commitment to adoption as a new beginning for thousands of children, and we celebrate the many American families who have embraced these children by accepting the rewards and responsibilities of adoption.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim November 1997 as National Adoption Month. I urge all Americans to observe this month with appropriate programs and activities to honor adoptive families and to participate in efforts to find permanent homes for waiting children.

IN WITNESS WHEREOF, I have hereunto set my hand this third day of November, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7049 November 6, 1997 National Day of Concern About Young People and Gun Violence, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7049 of November 6, 1997
National Day of Concern About Young People and Gun Violence, 1997 By the President of the United States of America A Proclamation

On this day in America, as on every other day, children will die by gunfire, and many of them will be killed because other children are pulling the trigger. This is a stark and sad reality and a call to each of us, not only to raise public awareness of a national tragedy, but also to do everything within our power to end the killing.

There is some encouraging news. The Department of Justice recently reported that violent crime among youths dropped by more than 9 percent in 1996. However, we still have a long way to go in our efforts to save lives and help ensure a brighter future for our children.

One of my Administration’s highest law enforcement priorities is to protect our children from violent crime, and we are especially concerned with stopping crimes committed by young people. I am pleased that eight of the Nation’s largest gun manufacturers have responded to my Administration’s call to provide child safety lock devices with every handgun they sell. We proposed a $60 million increase for the Safe and Drug-Free Schools Program this year, which reaches almost 111 STAT. 3008all of our Nation’s school districts. These funds will help communities protect students from violence. My Administration also proposed funding for after-school initiatives in communities across the country to give our young people something positive to say yes to, to keep them off the streets, and to keep them out of trouble. Through our Anti-Gang and Youth Violence Strategy, we are working to provide for more prosecutors and probation officers, tougher penalties, and better gang prevention efforts.

But government alone cannot guarantee our children will grow up free from violence and fear. Parents, teachers, religious and community leaders, businesses, youth organizations, and especially young people themselves have a vital part to play. Parents and other adults must set a good example for the children in their care and teach them right from wrong. Adults who own a gun have a responsibility to keep that weapon out of the hands of our youth. Communities must unite to keep schools safe and to provide young people with positive, fulfilling activities after school and during summers and holidays. Most important, young people themselves have a duty to learn that violence solves nothing; to act responsibly when confronted by peer pressure by relying on their own good judgment, and to encourage their friends and classmates to resolve conflicts peacefully.

I am heartened by the knowledge that hundreds of thousands of young Americans across the country will have an opportunity on this National Day of Concern to sign the Student Pledge Against Gun Violence. By making this earnest promise never to take a gun to school, never to use a gun to settle a dispute, and to use their influence to keep their friends from using guns, these young people will take a giant step toward a brighter, safer future.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim November 6, 1997, as a National Day of Concern About Young People and Gun Violence. On this day, I call upon young Americans in classrooms and communities across the country to make a solemn decision about their future by signing the Student Pledge Against Gun Violence. I further urge all Americans to help our Nation’s young people avoid violence and grow up to be healthy, happy, productive adults.

IN WITNESS WHEREOF, I have hereunto set my hand this sixth day of November, in the year of our Lord nineteen hundred and ninety-seven, and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON 7050 November 7, 1997 Veterans Day, 1997 Digitization Vendor By the President of the United States of America A Proclamation Proclamation 7050 of November 7, 1997
Veterans Day, 1997 By the President of the United States of America A Proclamation

Americans have always looked to the future. Planning for next week, next month, or next year, we rarely dwell on the past, but rather look 111 STAT. 3009ahead to tomorrow. But each year in November, we pause to look back, to reflect with pride and profound gratitude on the achievements of our Nation's veterans. The service and sacrifice of these millions of courageous men and women is a gleaming thread that weaves, unbroken, through the fabric of American history.

More than two centuries ago, the framers of our Constitution outlined in a few brief words the burden and privilege that generations of American veterans would willingly embrace: to “provide for the common defence . . . and secure the Blessings of Liberty to ourselves and our Posterity . . . .” Since the days of the American Revolution, nearly 42 million patriots have taken up arms to defend America and to guarantee that the blessings of liberty are, indeed, secure. From Lexington and Concord to Fort McHenry and San Juan Hill, from the Argonne Forest to the shores of Normandy, from the frozen terrain of Korea to the jungles of Vietnam and the sands of Kuwait, America’s veterans have risked—and more than half a million have lost—their lives to preserve our freedom and defend our national interests.

Today, more than 25 million American veterans live among us. They come from every walk of fife and from every ethnic, religious, and racial background. They are our family members, friends, and neighbors, but these seemingly ordinary citizens have accomplished extraordinary things. They have defended our liberty against every challenge, preserved our values, advanced democracy across the globe, and made America the world’s best hope for freedom and lasting peace.

For these contributions, and for so much more, we owe our veterans an enormous debt of gratitude that we can never fully repay. To those who have completed their service and returned to civilian life, we owe the opportunity for a good education, a good job, and the chance to buy a home. For those who have suffered injury or illness in service to America, we must provide relief, quality health care, and the opportunity to live out their dreams. To the families of those still missing, we owe the fullest possible accounting and every effort to determine the fate of their loved ones. And to those who have died for us and for our country, whether here at home or on some foreign battlefield, we owe our lasting respect and the pledge to meet America’s future challenges with the same valor and generosity that infused their sacrifice.

In recognition of and gratitude for the contributions of those who have served in our Armed Forces, the Congress has provided (5 U.S.C. 6103(a)) that November 11 of each year shall be set aside as a legal public holiday to honor America’s veterans.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, do hereby proclaim Tuesday, November 11, 1997, as Veterans Day. I urge all Americans to acknowledge the courage and sacrifice of our veterans through appropriate public ceremonies and private prayers. I call upon Federal, State, and local officials to display the flag of the United States and to encourage and participate in patriotic activities in their communities. I invite civic and fraternal organizations. places of worship, schools, businesses, unions, and the media to support this national observance with suitable commemorative expressions and programs.

IN WITNESS WHEREOF, I have hereunto set my hand this seventh day of November, in the year of our Lord nineteen hundred and ninety-seven, 111 STAT. 3010and of the Independence of the United States of America the two hundred and twenty-second.
WILLIAM J. CLINTON
POPULAR NAME INDEX Note: Part 1 contains pages 1–1106; Part 2 contains pages 1107–2114; Part 3 contains pages 2115–3010. Each part contains entire Popular Name and Subject Indexes. A1 Adoption and Safe Families Act of 1997 2115 Agricultural Market Transition Act, amendments 2108 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1996, amendments 2084 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1998 2079 Airport and Airway Trust Fund Tax Reinstatement Act of 1997 4 Alaska National Interest Lands Conservation Act, amendments 1592–1594 Amtrak Reform and Accountability Act of 1997 2570 Anadromous Fish Conservation Act, amendments 2677 Anti-Car Theft Improvements Act of 1996, amendments 2215 Antiterrorism and Effective Death Penalty Act of 1996, amendments 2468 Arms Export Control Act, amendments 2411, 2412 Army Reserve-National Guard Equity Reimbursement Act 2688 Asian Elephant Conservation Act of 1997 2150 Assisted Suicide Funding Restriction Act of 1997 23 Atlantic Striped Bass Conservation Act, amendments 2672 Atlantic Striped Bass Conservation Act Amendments of 1997 2672 Atomic Energy Act of 1954, amendments 2042 Aviation Insurance Reauthorization Act of 1997 2640 Balanced Budget Act of 1997 251 Balanced Budget Act of 1997, amendments 1098, 1099, 1519, 2187, 2188, 2521 Balanced Budget Downpayment Act, I, amendments 257, 1364, 1407 Balanced Budget and Emergency Deficit Control Act of 1985, amendments 697, 2125 Ballistic Missile Defense Act of 1995, amendments 1665 Budget Enforcement Act of 1997 677 Census of Agriculture Act of 1997 2274 Central Intelligence Agency Act of 1949, amendments 2257, 2258, 2260 Central Intelligence Agency Retirement Act, amendments 659 Charitable Donation Antitrust Immunity Act of 1997 241 Charitable Gift Annuity Antitrust Relief Act of 1995, amendments 241 Child Care and Development Block Grant Act of 1990, amendments 645, 646 Civil Justice Reform Act of 1990, amendments 1173 Clinger-Cohen Act of 1996, amendments 1849, 1851 Coast and Geodetic Survey Commissioned Officers’ Act of 1948, amendments 1803, 1804 Coast Guard Authorization Act of 1996, amendments 1599 Communications Act of 1934, amendments 258, 260, 265, 266, 268, 2540 Computer Security Act of 1987, amendments 1907 Congressional Budget Act of 1974, amendments 678–680, 682–688, 690–692, 695, 696, 2125 Congressional Budget and Impoundment Control Act of 1974, amendments 678, 684, 687, 688, 690, 692, 695–697 Congressional Operations Appropriations Act, 1991, amendments 1180 Congressional Operations Appropriations Act, 1998 1177 Consolidated Farm and Rural Development Act, amendments 2094, 2275 Consolidated Omnibus Budget Reconciliation Act of 1985, amendments 345, 550, 2685 Contract Disputes Act of 1978, amendments 1906 Contract with America Advancement Act of 1996, amendments 624 Controlled Substances Act, amendments 2328 Cost of Higher Education Review Act of 1997 207 Cranston-Gonzalez National Affordable Housing Act, amendments 1366A2 Defense Authorization Amendments and Base Closure and Realignment Act, amendments 1906, 1996 Defense Base Closure and Realignment Act of 1990, amendments 1997 Defense Conversion, Reinvestment, and Transition Assistance Act of 1992, amendments 1924 Delaware River Basin Compact, amendments 176 Department of Commerce and Related Agencies Appropriations Act, 1998 2471 Department of Defense Appropriation Authorization Act, 1978, amendments 1916 Department of Defense Appropriations Act, 1996, amendments 1735 Department of Defense Appropriations Act, 1997, amendments 1245 Department of Defense Appropriations Act, 1998 1203 Department of Education Appropriations Act, 1998 1496 Department of Energy Organization Act, amendments 245 Department of Energy Standardization Act of 1997 245 Department of Health and Human Services Appropriations Act, 1997, amendments 188, 637 Department of Health and Human Services Appropriations Act, 1998 1477 Department of the Interior and Related Agencies Appropriations Act, 1981, amendments 1568 Department of the Interior and Related Agencies Appropriations Act, 1989, amendments 1563 Department of the Interior and Related Agencies Appropriations Act, 1994, amendments 1547 Department of the Interior and Related Agencies Appropriations Act, 1995, amendments 1563 Department of the Interior and Related Agencies Appropriations Act, 1996, amendments 181, 1547, 1596 Department of the Interior and Related Agencies Appropriations Act, 1997, amendments 181, 1547, 1564 Department of the Interior and Related Agencies Appropriations Act, 1998 1543 Department of the Interior and Related Agencies Appropriations Act, 1998, amendments 2523 Department of Justice Appropriations Act, 1993, amendments 2460, 2467 Department of Justice Appropriations Act, 1995, amendments 2458 Department of Justice Appropriations Act, 1998 2440 Department of Labor Appropriation Act, 1958, amendments 1476 Department of Labor Appropriations Act, 1997, amendments 3 Department of Labor Appropriations Act, 1998 1467 Department of State and Related Agencies Appropriations Act, 1995, amendments 1158 Department of State and Related Agencies Appropriations Act, 1998 2494 Department of Transportation and Related Agencies Appropriations Act, 1996, amendments 2214 Department of Transportation and Related Agencies Appropriations Act, 1997, amendments 193, 195 Department of Transportation and Related Agencies Appropriations Act, 1998 1425 Department of Transportation and Related Agencies Appropriations Act, 1998, amendments 1522 Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1993, amendments 2460, 2467 Departments of Commerce, Justice, and State, the Judicially, and Related Agencies Appropriations Act, 1995, amendments 2458 Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1997, amendments 3, 1272A3 Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1998 2440 Departments of Labor, and Health, Education, and Welfare Appropriation Act, 1958, amendments 1476 Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 1997, amendments 3, 1519 Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 1998 1467 Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996, amendments 1364 Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997, amendments 201, 1366, 1374, 1407 Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998 1344 Depository Institutions Disaster Relief Act of 1997 211 Developmental Disabilities Assistance and Bill of Rights Act, amendments 28 Digital Performance Right in Sound Recordings Act of 1995, amendments 1534 District of Columbia Appropriations Act, 1998 2160 District of Columbia Bond Financing Improvements Act of 1997 768 District of Columbia Court Reform and Criminal Procedure Act of 1970, amendments 762 District of Columbia Depository Act of 1977, amendments 754 District of Columbia Financial Responsibility and Management Assistance Act of 1995, amendments 760, 777, 779, 782, 2186 District of Columbia Government Comprehensive Merit Personnel Act of 1978, amendments 14, 760, 2182 District of Columbia Income and Franchise Tax Act of 1947, amendments 2187 District of Columbia Inspector General Improvement Act of 1997 14 District of Columbia Management Reform Act of 1997 731 District of Columbia Police and Firemen’s Salary Act of 1958, amendments 1285, 2188 District of Columbia Policemen and Firemen’s Retirement and Disability Act, amendments 2184 District of Columbia Procurement Practices Act of 1985, amendments 777 District of Columbia Retirement Protection Act of 1997 715 District of Columbia Retirement Reform Act, amendments 758, 759, 2184 District of Columbia Revenue Act of 1939, amendments 765, 767, 768, 778 District of Columbia School Reform Act of 1995, amendments 2190–2193 District of Columbia Self-Government and Governmental Reorganization Act, amendments 753, 768, 2174, 2187 Dolphin Protection Consumer Information Act, amendments 1125, 1127, 1128 Drug-Free Communities Act of 1997 224 Drug-Free Workplace Act of 1988, amendments 1838 Earthquake Hazards Reduction Act of 1977, amendments 1159, 1162–1164 Economic Espionage Act of 1996, amendments 2568, 2569 Elementary and Secondary Education Act of 1965, amendments 214, 215, 1497, 1498, 1508 Emergency Student Loan Consolidation Act of 1997 1522 Emergency Supplemental Appropriations for Additional Disaster Assistance, for Antiterrorism Initiatives, for Assistance in the Recovery from the Tragedy that Occurred at Oklahoma City, and Rescissions Act, 1995, amendment 1364A4 Employee Retirement Income Security Act of 1974, amendments 647, 648, 948, 1058, 1061, 1062, 1066, 1069–1071, 1089, 1097, 1457, 2139, 2141 Energy Policy Act of 1992, amendments 237, 1097, 2634 Energy Policy and Conservation Act, amendments 676, 677 Energy and Water Development Appropriations Act, 1990, amendments 1323 Energy and Water Development Appropriations Act, 1998 1320 Everglades National Park Protection and Expansion Act of 1989, amendments 1541, 1542 Executive Office Appropriations Act, 1998 1290 Export-Import Bank Act of 1945, amendments 1158, 2528–2530 Export-Import Bank Reauthorization Act of 1997 2528 Fair Credit Reporting Act, amendments 2255 Fair Labor Standards Act of 1938, amendments 1477 Federal Acquisition Streamlining Act of 1994, amendments 1848, 1849 Federal Advisory Committee Act, amendments 2689 Federal Advisory Committee Act Amendments of 1997 2689 Federal Aviation Reauthorization Act of 1996, amendments 2215 Federal Credit Reform Act of 1990, amendments 692–695 Federal Deposit Insurance Act, amendments 238 Federal Election Campaign Act of 1971, amendments 1305, 1316 Federal Employees’ Retirement System Open Enrollment Act of 1997 1318 Federal Energy Administration Act of 1974, amendments 245 Federal Fire Prevention and Control Act of 1974, amendments 2264 Federal Food, Drug, and Cosmetic Act, amendments 2296 Federal Home Loan Bank Act, amendments 2633 Federal Housing Enterprises Financial Safety and Soundness Act of 1992, amendments 1403 Federal Law Enforcement Pay Reform Act of 1990, amendments 1288 Federal Noxious Weed Act of 1974, amendments 2108 Federal Physicians Comparability Allowance Act of 1978, amendments 1307 Federal Property and Administrative Services Act of 1949, amendments 244, 1167, 1300, 1836, 1850, 1851, 1906, 2468 50 States Commemorative Coin Program Act 2534 Food and Drug Administration Modernization Act of 1997 2296 Food Security Act of 1985, amendments 2276 Food Stamp Act of 1977, amendments 216, 217, 251, 252, 255, 256 Foreign Assistance Act of 1961, amendments 2433, 2435 Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1990, amendments 2432 Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1995, amendments 2416 Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1997, amendments 2430, 2438 Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1998 2386 Foreign Relations Authorization Act, Fiscal Years 1986 and 1987, amendments 2522 Foreign Relations Authorization Act, Fiscal Years 1994 and 1995, amendments 2471 Foreign Service Act of 1980, amendments 660, 661 Forest Resources Conservation and Shortage Relief Act of 1990, amendments 1618, 1620–1622 Forest Resources Conservation and Shortage Relief Act of 1997 1617 General Aviation Revitalization Act of 1994, amendments 2215 Hawaiian Homes Commission Act, 1920, amendments 235 Health Insurance Portability and Accountability Act of 1996, amendments 386, 1095A5 Higher Education Act of 1965, amendments 214, 648, 652, 1522 Hispanic Cultural Center Act of 1997 2543 Homeless Veterans Comprehensive Service Programs Act of 1992, amendments 2287, 2288 Hood Bay Land Exchange Act of 1997 1269 Hoopa Valley Reservation South Boundary Adjustment Act, amendments 1527 House of Representatives Administrative Reform Technical Corrections Act, amendments 1183, 1184 Housing Act of 1949, amendments 2110, 2111 Housing and Community Development Act of 1987, amendments 1419 Housing and Community Development Act of 1992, amendments 201 HUBZone Act of 1997 2627 HUD Demonstration Act of 1993, amendments 201 Illegal Immigration Reform and Immigrant Responsibility Act of 1996, amendments 641, 1175, 2196, 2198, 2199, 2201, 2644 Immigration and Nationality Act, amendments 1175, 1350, 1459, 1521, 1916, 2200, 2201, 2458, 2460, 2471, 2639 Immigration and Nationality Act of 1952, amendments 2457 Immigration and Nationality Act of 1990, amendments 2459 Immigration and Nationality Technical Corrections Act of 1994, amendments 1115 Improving America’s Schools Act of 1994, amendments 1140 Independent Agencies Appropriations Act, 1989, amendments 1299 Independent Agencies Appropriations Act, 1998 1295 Indian Gaming Regulatory Act, amendments 1566, 2522 Indian Health Care Improvement Act, amendments 27 Individuals with Disabilities Education Act, amendments 37 Individuals with Disabilities Education Act Amendments of 1997 37 Inspector General Act of 1978, amendments 2586 Intelligence Authorization Act, Fiscal Year 1990, amendments 1863 Intelligence Authorization Act for Fiscal Year 1996, amendments 2262 Intelligence Authorization Act for Fiscal Year 1998 2248 Intermodal Surface Transportation Efficiency Act of 1991, amendments 2553, 2556–2559 Internal Revenue Code of 1986, amendments 4, 331, 333, 334, 360, 486, 604, 605, 671–674, 721, 722, 788, 1104, 1319, 1412, 2204, 2560, 2561 International Air Transportation Competition Act of 1979, amendments 1447 International Dolphin Conservation Program Act 1122 International Financial Institutions Act, amendments 2426 Investment Advisers Supervision Coordination Act, amendments 15 John F. Kennedy Center Act, amendments 2148 John F. Kennedy Center Parking Improvement Act of 1997 2148 Judicial Improvements and Access to Justice Act, amendments 1173 Judicial Improvements Act of 1990, amendments 1173 Judiciary Appropriations Act, 1998, The 2488 Land and Water Conservation Fund Act of 1965, amendments 1617 Law Enforcement Technology Advertisement Clarification Act of 1997 2273 Legal Services Corporation Act, amendments 28 Legislative Branch Appropriation Act, 1968, amendments 192 Legislative Branch Appropriations Act, 1987, amendments 1184 Legislative Branch Appropriations Act, 1991, amendments 1180, 1201 Legislative Branch Appropriations Act, 1996, amendments 1183 Legislative Branch Appropriations Act, 1998 1177 Lower Brule Sioux Tribe Infrastructure Development Trust Fund Act 2563A6 Marine Mammal Protection Act of 1972, amendments 174, 187, 1122, 1137 Marjory Stoneman Douglas Wilderness and Ernest F. Coe Visitor Center Designation Act 1540 Merchant Marine Act, 1936, amendments 835, 2075, 2076 Miccosukee Settlement Act of 1997 1624 Michigan Indian Land Claims Settlement Act 2652 Military Construction Appropriations Act, 1998 1142 Military Construction Authorization Act, 1968, amendments 2015 Military Construction Authorization Act, 1985, amendments 2007, 2010 Military Construction Authorization Act for Fiscal Year 1995, amendments Military Construction Authorization Act for Fiscal Year 1996, amendments 2014 Military Construction Authorization Act for Fiscal Year 1997, amendments 1973, 1974, 1977, 1981, 1983, 2007, 2009 Military Construction Authorization Act for Fiscal Year 1998 1966 Military Selective Service Act, amendments 1783 Morris K. Udall Parkinson’s Disease Research Act of 1997 1519 Multifamily Assisted Housing Reform and Affordability Act of 1997 1384 Museum and Library Services Act, amendments 2548 Museum and Library Services Technical and Conforming Amendments of 1997 2548 Nation’s Capital Bicentennial Designation Act 2180 National Capital Revitalization and Self-Government Improvement Act of 1997 712 National Defense Authorization Act for Fiscal Year 1986, amendments 1885 National Defense Authorization Act, Fiscal Year 1989, amendments 1801, 1885, 2042 National Defense Authorization Act for Fiscal Year 1991, amendments 1702, 1840, 1905 National Defense Authorization Act for Fiscal Year 1993, amendments 1709, 1905, 2042 National Defense Authorization Act for Fiscal Year 1994, amendments 1915, 2042, 2048 National Defense Authorization Act for Fiscal Year 1995, amendments 1524, 1667, 1815, 1834, 1982, 2040 National Defense Authorization Act for Fiscal Year 1996, amendments 1649, 1702, 1713, 1714, 1758, 1845, 1869, 1880, 1885, 1905, 2006, 2014, 2042 National Defense Authorization Act for Fiscal Year 1997, amendments 1649, 1657, 1666, 1686, 1809, 1810, 1813, 1845, 1860, 1881, 1904, 1954, 1955, 1973, 1974, 1977, 1981, 1983, 2007, 2009, 2039, 2042, 2047, 2049, 2050 National Defense Authorization Act for Fiscal Year 1998 1629 National Defense Authorization Act for Fiscal Year 1998, amendments 2525, 2551 National Defense Authorization Act for Fiscal Years 1988 and 1989, amendments 1906 National Defense Authorization Act for Fiscal Years 1990 and 1991, amendments 1840, 2042 National Defense Authorization Act for Fiscal Years 1992 and 1993, amendments 1905, 1918 National Flood Insurance Act, amendments 1377 National Flood Insurance Act of 1968, amendments 1157, 1377 National Foundation on the Arts and the Humanities Act of 1965, amendments 1605, 1606, 2522 National Gambling Impact Study Commission Act, amendments 248 National Geologic Mapping Act of 1992, amendments 1107 National Geologic Mapping Reauthorization Act of 1997 1107 National Health Museum Development Act 1524 National Housing Act, amendments 201, 1366, 1367, 1406, 1409, 1412–1414 National Institute of Standards and Technology Act, amendments 1907 National Maritime Heritage Act of 1994, amendments 1878 National Narcotics Leadership Act of 1988, amendments 224A7 National Parks and Recreation Act of 1978, amendments 1541 National Security Act of 1947, amendments 2251, 2252, 2261 National Telecommunications and Information Administration Organization Act, amendments 262–265 National Wildlife Refuge System Administration Act of 1966, amendments 1252 National Wildlife Refuge System Improvement Act of 1997 1252 Need-Based Educational Aid Antitrust Protection Act of 1997 1140 New Mexico Statehood and Enabling Act Amendments of 1997 1113 Nicaraguan Adjustment and Central American Relief Act 2193 Nicaraguan Adjustment and Central American Relief Act, amendments 2644 1997 Emergency Supplemental Appropriations Act for Recovery from Natural Disasters, and for Overseas Peacekeeping Efforts, Including Those in Bosnia 158 1997 Emergency Supplemental Appropriations Act for Recovery from Natural Disasters, and for Overseas Peacekeeping Efforts, Including Those in Bosnia, amendments 1248, 1272 No Electronic Theft (NET) Act 2678 Northeast Rail Service Act of 1981, amendments 2586 Office of Federal Procurement Policy Act, amendments 1837, 1838, 1843, 1847–1849, 1851, 1906, 2634 Oklahoma City National Memorial Act of 1997 1261 Omnibus Appropriations Act for Fiscal Year 1997, amendments 1564 Omnibus Budget Reconciliation Act of 1986, amendments 549, 550 Omnibus Budget Reconciliation Act of 1987, amendments 336 Omnibus Budget Reconciliation Act of 1989, amendments 425, 528 Omnibus Budget Reconciliation Act of 1990, amendments 665 Omnibus Budget Reconciliation Act of 1993, amendments 260, 337, 376, 712, 1097, 2130 Omnibus Consolidated Appropriations Act, 1997, amendments 3, 181, 188, 637, 1289, 1547 Omnibus Consolidated Rescissions and Appropriations Act of 1996, amendments 181, 1547, 1596, 2185 Omnibus Crime Control and Safe Streets Act of 1968, amendments 2468 Omnibus Parks and Public Lands Management Act of 1996, amendments 1566, 1595, 1607 Oroville-Tonasket Claim Settlement and Conveyance Act 16 Pam Lychner Sexual Offender Tracking and Identification Act of 1996, amendments 2464 Panama Canal Act of 1979, amendments 2063 Panama Canal Commission Authorization Act for Fiscal Year 1998 2062 Panama Canal Commission Compensation Fund Act of 1988, amendments 2072 Panama Canal Transition Facilitation Act of 1997 2062 Parole Commission Phaseout Act of 1996, amendments 745 Peace Corps Act, amendments 27 Personal Responsibility and Work Opportunity Reconciliation Act of 1996, amendments 191, 595, 597–603, 618–621, 623, 637, 640–643 Philippine Army, Scouts, and Guerilla Veterans of World War II Naturalization Act of 1997 2459 Pilot Records Improvement Act of 1996, amendments 2650 Postal Service Appropriations Act, 1998 1290 President John F. Kennedy Assassination Records Collection Act of 1992, amendments 240 Protection and Advocacy for Mentally Ill Individuals Act of 1986, amendments 28 Public Health Service Act, amendments 27, 29, 574, 1494, 1520, 1804, 2296 Reclamation Wastewater and Groundwater Act, amendments 1339A8 Rehabilitation Act of 1973, amendments 28 Retirement Protection Act of 1994, amendments 1067 Riegle-Neal Amendments Act of 1997 238 Rocky Mountain Arsenal National Wildlife Refuge Act of 1992, amendments 2007 San Carlos Apache Tribe Water Rights Settlement Act of 1992, amendments 181, 182, 187 Satellite Home Viewer Act of 1994, amendments 1529, 1530 Savings Are Vital to Everyone’s Retirement Act of 1997 2139 Sikes Act, amendments 2016–2018, 2020–2023 Sikes Act Improvement Act of 1997 2016 Small Business Act, amendments 1848, 1906, 2594, 2597, 2598, 2600, 2606, 2611, 2617–2624, 2627, 2629, 2631, 2632, 2635, 2637 Small Business Administration Reauthorization and Amendment Act of 1988, amendments 2624 Small Business Administration Reauthorization and Amendments Act of 1994, amendments 2606, 2624, 2627 Small Business Competitiveness Demonstration Program Act of 1988, amendments 174, 2616 Small Business Economic Policy Act of 1980, amendments 2633, 2637 Small Business Investment Act of 1958, amendments 2601–2604, 2633 Small Business Job Protection Act of 1996, amendments 987, 1086 Small Business Reauthorization Act of 1997 2592 Smith-Hughes Vocational Education Act, amendments 653 Social Security Act, amendments 26, 27, 34, 204, 270, 577, 711, 880, 961, 962, 1063, 1319, 1412, 1517, 1518, 1521, 1522, 2116–2118, 2120–2122, 2125–2128,2130–2134, 2188–2190 Social Security Amendments of 1983, amendments 550 Social Security Amendments of 1994, amendments 644 Social Security Independence and Program Improvements Act of 1994, amendments 625 Stamp Out Breast Cancer Act 1119 Stewart B. McKinney Homeless Assistance Act, amendments 2288 Strategic and Critical Materials Stock Piling Act, amendments 2058 Supplemental Appropriations Act, 1973, amendments 1180 Supplemental Appropriations Act, 1987, amendments 192 Support for East European Democracy Act, amendments 2438 Surface Transportation Extension Act of 1997 2552 Susquehanna River Basin Compact, amendments 176 Tax Reform Act of 1984, amendments 1098 Tax Reform Act of 1986, amendments 959, 1098 Taxpayer Bill of Rights 2, amendments 1096 Taxpayer Browsing Protection Act 1104 Taxpayer Relief Act of 1997 788 Technical and Miscellaneous Revenue Act of 1988, amendments 995 Third Supplemental Appropriations Act, 1957, amendments 1181 Trade Act of 1974, amendments 902 Treasury Department Appropriations Act, 1998 1272 Treasury and General Government Appropriations Act, 1998 1272 Treasury and General Government Appropriations Act, 1998, amendments 1451, 2523 Treasury, Postal Service and General Government Appropriations Act, 1989 1299 Treasury, Postal Service and General Government Appropriations Act, 1992, amendments 1306 Treasury, Postal Service and General Government Appropriations Act, 1997, amendments 1288 Tuna Conventions Act, amendments 1137, 1138 Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, amendments 2384 United States Fire Administration Authorization Act for Fiscal Years 1998 and 1999 2264A9 United States Housing Act of 1937, amendments 201, 257, 639, 1364, 1365, 1406, 1407, 1416 United States $1 Coin Act of 1997 2536 Uruguay Round Agreements Act, amendments 1097 USEC Privatization Act, amendments 1341 Veterans’ Benefits Act of 1997 2277 Veterans’ Benefits Improvement Act of 1994, amendments 2288 Veterans’ Benefits and Services Act of 1988, amendments 2287 Veterans’ Cemetery Protection Act of 1997 2202 Veterans’ Compensation Rate Amendments of 1997 2155 Veterans’ Medical Programs Amendments of 1992, amendments 2287 Veterans Reconciliation Act of 1997 663 Victim Rights Clarification Act of 1997 12 Victims of Crime Act of 1984, amendments 2457 Violent Crime Control and Law Enforcement Act of 1994, amendments 702, 2461–2464 Volunteer Protection Act of 1997 218 War Crimes Act of 1996, amendments 2436 Warner Canyon Ski Hill Land Exchange Act of 1997 1117 Weapons of Mass Destruction Control Act of 1992, amendments 1956 Women’s Business Ownership Act of 1988, amendments 2608–2611, 2634 Yavapai-Prescott Indian Treaty Settlement Act of 1994, amendments 1339 SUBJECT INDEX See Children, Youth, and Families Law Enforcement Technology Advertisement Clarification Act of 1997 2273 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1998 2079 Census of Agriculture Act of 1997 2274 Food and Drug Administration Modernization Act of 1997 2296 Grand Teton National Park Study, gazing use and open space 1537 See Transportation See Transportation Alabama-Coosa-Tallapossa River Basin Compact 2233 Apalachicola-Chattahoochee-Flint River Basin Compact 2219 Department of the Interior and Related Agencies Appropriations Act, 1998 1543 Hood Bay Land Exchange Act of 1997 1269 Alaska Pulp Corporation 1269 See Immigration Incorporation, technical correction 2270 See Transportation Charitable Donation Antitrust Immunity Act of 1997 241 Need-Based Educational Aid Antitrust Protection Act of 1997 1140 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies, 1998 2079 Amtrak Reform and Accountability Act of 1997 2570 Central Intelligence Agency Retirement and Disability System 2248 Earthquake hazards reduction 1159 Intelligence Authorization Act for Fiscal Year 1998 2248 Military Construction Authorization Act for Fiscal Year 1998 1966 National Defense Authorization Act for Fiscal Year 1998 1629 Panama Canal Commission Authorization Act for Fiscal Year 1998 2062 Refugee and entrant assistance 2639 U.S. district courts, arbitration 1173 Commerce Department and related agencies, 1998 2471 Commerce, Justice, and State, the Judiciary, and related agencies, 1998 2440 Congressional operations, 1998 1177 Continuing, 1998 1153,1343,1453,1454, 1456,1628 Defense Department, 1998 1203 District of Columbia, 1998 2160 Education Department, 1998 1496 Emergency supplemental, 1997 158 Energy and water development, 1998 1320 Executive Office, 1998 1290 Foreign operations, export financing, and related programs, 1998 2386 Health and Human Services Department, 1998 1477 Independent agencies, 1998 1295 Interior Department and related agencies, 1998 1543 Judiciary, 1998 2488 Justice Department, 1998 2440 Labor Department, 1998 1467 Labor, Health and Human Services, and Education, and related agencies, 1998 1467 Legislative Branch, 1998 1177 Military construction, 1998 1142 Omnibus Consolidated Appropriations Act, 1997, technical corrections 3 Postal Service, 1998 1290 State Department and related agencies, 1998 2494 Transportation Department and related agencies, 1998 1425 Treasury and general Government, 1998 1272 Treasury Department, 1998 1272 Veterans Affairs and Housing and Urban Development, and independent agencies, 1998 1344 Aristide, Jean-Bertrand 2502 Arkansas Post National Memorial, boundary adjustment 1567 1997 Emergency Supplemental Appropriations Act for Recovery from Natural Disasters, and for Overseas Peacekeeping Efforts, Including Those in Bosnia 158 Air Force Sergeants Association, federal charter, recognition and grant 1963B2 Army Reserve-National Guard Equity Reimbursement Act 2688 Department of Defense Appropriations Act, 1998 1203 Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1998 2386 Military Construction Authorization Act for Fiscal Year 1998 1966 National Defense Authorization Act for Fiscal Year 1998 1629 Public Affairs Specialty, establishment 1765 Technical corrections 2551 National Defense Authorization Act for Fiscal Year 1998 1947 See Armed Forces Permanent authority 1165 See Transportation Robert R. Ingram, medal of honor 2218 Baillergeau, Eugene 2520 Baker, Vernon J. 1759 Depository Institutions Disaster Relief Act of 1997 211 Export-Import Bank Reauthorization Act of 1997 2528 Riegle-Neal Amendments Act of 1997 238 See Fish and Wildlife Beaubrun, Mario 2520 Bertin, Mireille Durocher 2520 Better Health Plan Inc. 249 Advisory Commission on Drug-Free Communities, establishment 231 Amtrak Reform Board, establishment 2588 Amtrak Reform Council, establishment 2579 Assassination Records Review Board, extension 240 Commission on Military Training and Gender-Related Issues, establishment 1750 Department of Energy Security Management Board, establishment 2048 District of Columbia Correction Information Council, establishment 736 District of Columbia Truth in Sentencing Commission, establishment 740 Federal Advisory Committee Act Amendments of 1997 2689 Franklin Delano Roosevelt Memorial Commission, termination 1601 Medicare Payment Advisory Commission, establishment 350 National Bipartisan Commission on the Future of Medicare, establishment 347 National Commission on the Cost of Higher Education, establishment 207 National Council on the Arts, appointment and composition 1605 National Gambling Impact Study Commission, tort claims, clarification 248 National Health Museum Commission, establishment 1525 North Pacific Research Board, establishment 1608 Panama Canal Board of Contract Appeals, establishment 2071 Panama Canal Commission Authorization Act for Fiscal Year 1998 2062 Physician Payment Review Commission membership, term extension 31 Prospective Payment Assessment Commission membership, term extension 31 See Securities 1997 Emergency Supplemental Appropriations Act for Recovery from Natural Disasters, and for Overseas Peacekeeping Efforts, Including Those in Bosnia 158 Brennan, William J., Jr. 2963 Budget Balanced Budget Act of 1997 251 Budget Enforcement Act of 1997 677 Taxpayer Relief Act of 1997 788 Business and Industry HUBZone Act of 1997 2627 Small Business Reauthorization Act of 1997 2592 Carlos J. Moorhead Post Office Building, designation 2114 Hoopa Valley Reservation South Boundary Adjustment Act 1527 Land conveyance 1166 Trinity Lake, designation 1141B3 See Water See Health and Health Care Law enforcement donation, surplus, authorization 244 Warner Canyon Ski Hill Land Exchange Act of 1997 1117 Carter, Edward A. 1759 Arlington National Cemetery, interment or memorialization prohibition 2381 National Cemetery System, interment or memorialization prohibition 2381 State-owned veterans cemeteries, grant conditions 2382 Census of Agriculture Act of 1997 2274 Chalot, John Andre 2699 See Nonprofit Organizations Adoption and Safe Families Act of 1997 2115 International children, immunization requirements, exemption 1459 Boys and Girls Clubs of America, grants 2568 Certificate of citizenship, special transition rule, elimination 1115 Drug-Free Communities Act of 1997 224 Individuals with Disabilities Education Act Amendments of 1997 37 International family planning programs, Presidential finding 9 Missing children, penalty and franked mail authorization, extension 2542 Chilove, Joseph 2520 Christian, William H., Jr. 1172 Christopher, Warren 2705 Office of Employment Discrimination Complaint Adjudication, establishment 2280 Miccosukee Settlement Act of 1997 1624 Michigan Indian Land Claims Settlement Act 2652 National Gambling Impact Study Commission, tort clarification 248 Oronville-Tonasket Claim Settlement and Conveyance Act 16 See Currency See Education Eagles Nest Wilderness, expansion 1462 Land exchange 1460 Raggeds Wilderness, boundary adjustment and land conveyance 1463 White River National Forest, boundary adjustment 1465 Department of Commerce and Related Agencies Appropriations Act, 1998 2471 United States Trade Representative, appointment waiver 11 See Boards and Commissions Law Enforcement Technology Advertisement Clarification Act of 1997 2273 No Electronic Theft (NET) Act 2678 Satellite carriers, transmission fees 1529 Telecommunications, common carriers, designation 2540 Adjournment 2703, 2704, 2706, 2760, 2762, 2764, 2768 Days of remembrance of victims of the Holocaust, ceremony 2706 Jack Swigert 2707 Leslie Townes Hope 2766 Mother Teresa 2709 National Peace Officers’ Memorial Service 2708 Olympic torch relay 2710 Patriarch Bartholomew 2764 SAFE KIDS Buckle Up Car Seat Safety Check 2761 Soap box derby races 2709 Coral reef ecosystems 2765 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1998 2766 Export-Import Bank Reauthorization Act of 1997 2769 Federal Budget, fiscal year 1988 2710 High fructose corn syrup 2763 Joint session 2703, 2704, 2768 Presidential inauguration 2703 “How Our Laws Are Made” 2767B4 “Our Flag” 2766 “The Constitution of the United States of America” 2767 Robinson, Jackie, lifetime achievements 2706 Warren Christopher 2705 William J. Brennan 2761 Congressional gold medals Francis Albert Sinatra 32 Mother Teresa 35 Patriarch Bartholomew 1170 Congressional Operations Appropriations Act, 1998 1177 Enrolled bills, parchment printing, waiver 250, 2527 Hawaiian Homes Commission amendments, consent 235 Alabama-Coosa-Tallapoosa River Basin Compact, congressional consent 2233 Apalachicola-Chattahoochee-Flint River Basin Compact 2219 Chickasaw Trail Economic Development Compact 2669 Metropolitan Area Transit Regulation Compact 2686 Legislative Branch Appropriations Act, 1998 1177 Library of Congress, national audiovisual conservation center, property acquisition 2667 One Hundred Fifth Congress, second session, convening 2646 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1998 2091 Asian Elephant Conservation Act of 1997 2150 Department of the Interior and Related Agencies Appropriations Act, 1998 1543 Forest Resources Conservation and Shortage Relief Act of 1997 1617 International Dolphin Conservation Program Act 1122 J. Phil Campbell, Senior, Natural Resource Conservation Center, GA, designation 21 National Wildlife Refuge System Improvement Act of 1997 1252 Sikes Act Improvement Act of 1997 2016 See Drugs and Drug Abuse Arbitration panels, establishment 1533 Fees 1529 No Electronic Theft (NET) Act 2678 Registration and infringement actions 1532 Restored works 1530 Satellite carriers 1529 Judiciary Appropriations Act, 1998 2488 U.S. district courts, arbitration, appropriation authorization 1173 50 States Commemorative Coin Program Act 2534 United States $1 Coin Act of 1997 2536 User fees, access 2685 Davis, John Wesley 2697 Congressional gold medal 32, 35, 1170 Medal of honor 2218 See Banks and Banking See Handicapped 1997 Emergency Supplemental Appropriations Act for Recovery from Natural Disasters, and for Overseas Peacekeeping Efforts, Including Those in Bosnia 158 Depository Institutions Disaster Relief Act of 1997 211 Earthquake hazards reduction, appropriations authorization 1159 Hansen’s Disease 1494 Morris K. Udall Parkinson’s Disease Research Act of 1997 1519 Annual Federal payment, eliminated 777 Balanced Budget Act of 1997 251 District of Columbia Appropriations Act, 1998 2160 District of Columbia Bond Financing Improvements Act of 1997 768 District of Columbia Correction Information Council, establishment 736 District of Columbia Inspector General Improvement Act 14 District of Columbia Management Reform Act of 1997 731 District of Columbia Retirement Protection Act of 1997 715 District of Columbia’ Truth in Sentencing Commission, establishment 740B5 Federal Bureau of Investigation, Washington Field Office Memorial Building, designation 1172 Franklin Delano Roosevelt Memorial, addition 246 Metropolitan Area Transit Regulation Compact 2686 Metropolitan Washington Airports 2205 Nation’s Capital Bicentennial Designation Act 2180 National Capital Revitalization and Self-Government Improvement Act of 1997 712 National Health Museum, DC, designation 1525 Offender Supervision, Defender and Courts Services Agency, establishment 748 Taxpayer Relief Act of 1997 788 See Canines International Dolphin Conservation Program Act 1122 Dos Palos Ag Boosters 1166 Drug-Free Communities Act of 1997 224 Food and Drug Administration Modernization Act of 1997 2296 Dumarsais, Romulus 2520 See Disaster Assistance Balanced Budget Act of 1997 251 Center for Historically Black Heritage, FL, construction 2642 Cost of Higher Education Review Act of 1997 207 Department of Education Appropriations Act, 1998 1496 Emergency Student Loan Consolidation Act of 1997 1522 Individuals with Disabilities Education Act Amendments of 1997 37 Need-Based Educational Aid Antitrust Protection Act of 1997 1140 Office of Special Education Programs, establishment 46 Taxpayer Relief Act of 1997 788 See Energy See Communications Asian Elephant Conservation Act of 1997 2150 See Labor and Employment Department of Energy Standardization Act of 1997 245 Electric and magnetic fields research and public information dissemination program, extension 237 Energy and Water Development Appropriations Act, 1998 1320 See Suicide Export-Import Bank Reauthorization Act of 1997 2528 Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1998 2386 Exume, Jean-Joseph 2520 See Federal Buildings and Facilities See Children, Youth and Families Andrew Jacobs, Jr. Post Office Building, IN, designation 2137 Carlos J. Moorhead Post Office Building, CA, designation 2114 David B. Champagne Post Office Building, RI, designation 1455 David W. Dyer Federal Building and United States Courthouse, FL, designation 2146 Douglass Applegate Post Office, OH, designation 2154 Federal Bureau of Investigation, Washington Field Office Memorial Building, DC, designation 1172 Frank M. Tejeda Post Office Building, TX, designation 10 Howard M. Metzenbaum United States Courthouse, OH, designation 2533 J. Phil Campbell, Senior, Natural Resources Conservation Center, GA, designation 21 J. Roy Rowland United States Courthouse, GA, designation 2147 John F. Kennedy Center Parking Improvement Act of 1997 2148 John N. Griesemer Post Office Building, MO, designation 2562 John T. Myers Post Office Building, IN, designation 2138 Martin V.B. Bostetter, Jr. United States Courthouse, VA, designation 2532B6 Oscar Garcia Rivera Post Office Building, NY, designation 2113 Peter J. McCloskey Postal Facility, PA, designation 2159 Robert J. Dole United States Courthouse, KS, designation 1342 Wm. Jennings Bryan Dorn Department of Veterans Affairs Medical Center, SC, designation 2294 Feuille, Jean-Hubert 2520 See Banks and Banking United States Fire Administration Authorization Act for Fiscal Years 1998 and 1999 2264 Atlantic Striped Bass Conservation Act Amendments of 1997 2672 Sikes Act Improvement Act of 1997 2016 Fleurival, Jacques 2520 Apalachicola-Chattahoochee-Flint River Basin Compact 2219 Center for Historically Black Heritage, construction 2642 David W. Dyer Federal Building and United States Courthouse, designation 2146 Marjory Stoneman Douglass Wilderness and Ernest F. Coe Visitor Center Designation Act 1540 Miccosukee Settlement Act of 1997 1624 Florida A&M University 2642 See Agriculture Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1998 2101 Department of State and Related Agencies Appropriations Act, 1998 2494 Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1998 2386 Hong Kong Economics and Trade Offices, privileges, exemptions, and immunities, extension 236 International population planning program, Presidential finding, approval 9 National Defense Authorization Act for Fiscal Year 1998 1927, 1958 Nicaraguan Adjustment and Central American Relief Act 2193 Forest Resources Conservation and Shortage Relief Act of 1997 1617 See Children, Youth, and Families National Geologic Mapping Reauthorization Act of 1997 1107 Alabama-Coosa-Tallapoosa River Basin Compact 2233 Apalachicola-Chattahoochee-Flint River Basin Compact 2219 J. Roy Rowland United States Courthouse, designation 2147 Plains Railroad Depot, acquisition 2247 Canines, law enforcement surplus donation, authorization 244 Charitable donation, surplus property 1167 Gonzalez, Michel 2520 Balanced Budget Act of 1997 251 Federal Employees’ Retirement System Open Enrollment Act of 1997 1318 Taxpayer Browsing Protection Act 1104 District of Columbia, annual Federal payment, eliminated 777 District of Columbia Management Reform Act of 1997 731 District of Columbia Offender Supervision, Defender and Courts Services Agency, establishment 748 Office of Employment Discrimination Complaint Adjudication, establishment 2280 Office of Multifamily Housing Assistance Restructuring, establishment 1420 Office of Special Education Programs, establishment 46 Office of Women’s Business Ownership, establishment 2613 Oklahoma City National Memorial Trust, establishment 1262 Boys and Girls Clubs of America 2568 Center for Historically Black Heritage, FL, construction 2642 Hispanic Cultural Center Act of 1997 2543 Grimar, Leslie 2520 Group Hospitalization and Medical Services, Inc. 2684B7 Individuals with Disabilities Education Act Amendments of 1997 37 Hawaiian Homes Commission amendments, congressional consent 235 Assisted Suicide Funding Restriction Act of 1997 23 Balanced Budget Act of 1997 251 Department of Health and Human Services Appropriations Act, 1998 1477 Group Hospitalization and Medical Services, Inc. Federal charter, amendment 2684 Medicare and Medicaid Better Health Plan Inc., medicaid enrollment rule, waiver 249 Medicare+Choice Program, establishment 275 National Health Museum Development Act 1524 Nurses and Nursing Training and competency evaluation programs 34 Stamp Out Breast Cancer Act 1119 Hermann, Michelange 2520 Plains Railroad Depot, GA, acquisition 2247 Economic and Trade Offices, privileges, exemptions, and immunities, extension 236 Balanced Budget Act of 1997 251 Department of Veterans Affairs and Housing and Urban Development and Independent Agencies Appropriations Act, 1998 1344 Low-income housing, surplus property, donation 1167 Multifamily Assisted Housing Reform and Affordability Act of 1997 1384 Office of Multifamily Housing Assistance Restructuring, establishment 1420 Taxpayer Relief Act of 1997 788 Au pairs programs 1165 Certificate of citizenship, special transition rule for children, elimination 1115 Charities, visa fees, waiver 1175 Deportable aliens awaiting arraignment identification program, establishment 2647 Displaced persons, relocation assistance and real property acquisition, prohibition 2384 Employer sanctions program, paperwork deadline, extension 1175 Internationally adopted children, immunization requirements, exemption 1459 Nicaraguan Adjustment and Central American Relief Act 2193 Philippine Army, Scouts, and Guerilla Veterans of World War II Naturalization Act of 1997 2459 Refugee and entrant assistance, appropriation authorization 2639 Special immigrant religious worker program, extension 1175 Technical corrections 2644 See Exports and Imports Andrew Jacobs, Jr. Post Office Building, designation 2137 John T. Myers Post Office Building, designation 2138 Inskeep, Jean H. 2667 Inskeep, Russell H. 2667 Aviation Insurance Reauthorization Act of 1997 2640 Amtrak Reform and Accountability Act of 1997 2570 Atlantic Striped Bass Conservation Act Amendments of 1997 2672 Charitable donation, surplus property 1167 Individuals with Disabilities Education Act Amendments of 1997 37 Riegle-Neal Amendments Act of 1997 238 See Foreign Relations See Foreign Relations Alabama Coosa-Tallapoosa River Basin Compact 2233 Apalachicola-Chattahoochee-Flint River Basin Compact 2219 Chickasaw Trail Economic Development Compact 2669 Metropolitan Area Transit Regulation Compact 2686 See Securities Izmery, Antoine 2520B8 Robert J. Dole United States Courthouse, designation 1342 Department of Labor Appropriations Act, 1998 1467 Immigration, sanctions program, extension 1175 Investment managers, employee benefits, registration 1457 Office of Employment Discrimination Complaint Adjudication, establishment 2280 Pilots records 2650 Lake, Anthony 2520 Canines, surplus donation, authorization 244 Department of Justice Appropriations Act, 1998 2440 Law Enforcement Technology Advertisement Clarification Act of 1997 2273 No Electronic Theft (NET) Act 2678 Deportable aliens awaiting arraignment identification program, establishment 2647 Veterans’ Cemetery Protection Act of 1997 2202 Victims Rights Clarification Act of 1997 12 Leroy, Antoine 2520 Museum and Library Services Technical and Conforming Amendments of 1997 2548 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1998 2079 Balanced Budget Act of 1997 251 Department of Defense Appropriations Act, 1998 1203 Department of the Interior and Related Agencies Appropriations Act, 1998 1543 Department of Transportation and Related Agencies Appropriations Act, 1998 1425 Department of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998 1344 Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1998 2440 Energy and Water Development Appropriations Act, 1998 1320 Military Construction Appropriations Act, 1998 1142 Taxpayer Relief Act of 1997 788 Treasury and General Government Appropriations Act, 1998 1272 Emergency Student Loan Consolidation Act of 1997 1522 Penalty and franked mail authorization, missing children, extension 2542 Malary, Guy 2520 National Geologic Mapping Reauthorization Act of 1997 1107 Marie, Claude Yves 2520 International Dolphin Conservation Program Act 1122 Martinez, Martha Dixon 1172 Metropolitan Area Transit Regulation Compact 2686 Mayard, Max 2520 See Health and Health Care Meili, Davide 2695 Meili, Giuseppina 2695 Meili, Michel Christopher 2695 Meili, Mirjam Naomi 2695 Michigan Indian Land Claims Settlement Act 2652 Reversionary land interest, release 1268 See National Defense Miller, Michael J. 1172 Department of the Interior and Related Agencies Appropriations Act, 1998 1543 Center for Historically Black Heritage, FL, construction 2642 Hispanic Cultural Center Act of 1997 2543 Office of Women’s Business Ownership, establishment 2613 Chickasaw Trail Economic Development Compact 2669 John N. Griesemer Post Office Building, designation 2562 Moser, Roy Desmond 2698B9 Museum and Library Services Technical and Conforming Amendments of 1997 2548 National Health Museum Development Act 1524 See Drugs and Drug Abuse Department of Defense Appropriations Act, 1998 1203 Intelligence Authorization Act for Fiscal Year 1998 2248 Military Construction Appropriations Act, 1998 1142 National Defense Authorization Act for Fiscal Year 1998 1629 Technical corrections 2551 Hoopa Valley Reservation South Boundary Adjustment Act 15227 White River National Forest, CO, boundary adjustment 1465 Army Reserve-National Guard Equity Reimbursement Act 2688 Arkansas Post National Memorial, AR, boundary adjustment 1567 Bandelier National Monument, NM, land transfer 2050 Franklin Delano Roosevelt Memorial, DC, addition 246 Grand Teton National Park study, WY, grazing and open space 1537 Marjory Stoneman Douglass Wilderness and Ernest F. Coe Visitor Center Designation Act 1540 Oklahoma City National Memorial Act of 1997 1261 Eagles Nest Wilderness, CO, expansion 1462 Raggeds Wilderness, CO, boundary adjustment and land conveyance 1463 National Wildlife Refuge System Improvement Act of 1997 1252 Department of the Interior and Related Agencies Appropriations Act, 1998 1543 Hoopa Valley Reservation South Boundary Adjustment Act 1527 Lower Brule Sioux Tribe Infrastructure Development Trust Fund Act 2563 Miccosukee Settlement Act of 1997 1624 Michigan Indian Land Claims Settlement Act 2652 See Disaster Assistance See Conservation Department of the Interior and Related Agencies Appropriations Act, 1998 1570 Hispanic Cultural Center Act of 1997 2543 Land conveyance 2523 New Mexico Statehood and Enabling Act Amendments of 1997 1113 Oscar Garcia Rivera Post Office Building, NY, designation 2113 Charitable Donation Antitrust Immunity Act of 1997 241 Donation, surplus property 1167 Nonimmigrants, visa fees, waiver 1175 Volunteer Protection Act of 1997 218 See Health and Health Care Douglas Applegate Post Office, designation 2154 Howard M. Metzenbaum United States Courthouse, designation 2533 Land conveyance 2268 Oklahoma City National Memorial Act of 1997 1261 Land conveyance 1116 Warner Canyon Ski Hill Land Exchange Act of 1997 1117 Palmisano, Anthony 1172 Panama Canal Commission Authorization Act for Fiscal Year 1998 2062 Panama Canal Transition Facilitation Act of 1997 2062 Patten, Christopher F. 1947 Peter J. McCloskey Postal Facility, designation 2159B10 Stamp Out Breast Cancer Act 1119 International family planning programs, finding 9 Preval, Rene 2520 See Law Enforcement and Crime Taxpayer Browsing Protection Act 1104 William J. Brennan, Jr. 2963 Adoption Month 2796, 3006 African American History Month 2857 America Goes Back to School 2970 American Heart Month 2858 American Indian Heritage Month 2809, 3005 American Red Cross Month 2861 Asian/Pacific American Heritage Month 2902 Austrian-American Day 2982 Bill of Rights Day 2838 Breast Cancer Awareness Month 2984 Cancer Control Month 2868 Captive Nations Week 2961 Character Counts Week 2781, 3000 Child Abuse Prevention Month 2870 Child Health Day 2776, 2989 Child Passenger Safety Week 2860 Children’s Day 2783, 2997 Citizenship Day 2976 Columbus Day 2784, 2996 Constitution Week 2976 Consumers Week 2794, 3003 Crime Victims’ Rights Week 2891 D.A.R.E. Day 2884 Day of Concern About Young People and Gun Violence 2778, 3007 Day of Hope and Renewal 2843 Day of Prayer 2894 Defense Transportation Day 2905 Disability Employment Awareness Month 2987 Domestic Violence Awareness Month 2986 Drunk and Drugged Driving Prevention Month 2825 Education and Sharing Day, U.S.A 2893 Employer Support of the Guard and Reserve Week 3004 Family Caregivers Week 2813 Family Week 2820 Farm-City Week 2812 Farm Safety and Health Week 2981 Father’s Day 2925 Fire Prevention Week 2773, 2988 Flag Day 2923 Flag Week 2923 Forest Products Week 2793, 2999 Former Prisoner of War Recognition Day 2883 General Pulaski Memorial Day 2780, 2993 German-American Day 2774, 2991 Gold Star Mother’s Day 2983 Great American Smokeout Day 2821 Greek Independence Day: A National Day of Celebration of Greek and American Democracy 2867 Hispanic Heritage Month 2972 Historically Black Colleges and Universities Week 2979 Honoring the Filipino Veterans of World War II 2792 Human Rights Day 2838 Human Rights Week 2838 International Rural Women’s Day 2998 Irish-American Heritage Month 2862 Jewish Heritage Week 2905 Korean War Veterans Armistice Day 2963 Law Day, U.S.A. 2898 Leif Erikson Day 2777, 2992 Loyalty Day 2900 Maritime Day 2909 Martin Luther King, Jr., Federal Holiday 2842 Minority Enterprise Development Week 2978 Mother’s Day 2903 Older Americans Month 2899 Older Workers Employment Week 2866 Organ and Tissue Donor Awareness Week 2895 Pan American Day 2887 Pan American Week 2887 Parents’ Day 2964 Park Week 2897 Pay Inequity Awareness Day 2885 Peace Officers Memorial Day 2903 Pearl Harbor Remembrance Day 2837 Poison Prevention Week 2865 Police Week 2903 POW/MIA Recognition Day 2977 Prayer for Peace, Memorial Day 2910 Religious Freedom Day 2841 Safe Boating Week 2907 Save Your Vision Week 2864 School Lunch Week 2782, 2995 Security Act of 1947, fiftieth anniversary 2974 Service and Volunteer Week 2886B11 Small Business Week 2922 Thanksgiving Day 2814 Transportation Week 2905 United Nations Day 2795, 3001 Veterans Day 2810, 3008 Week of Food Recovery 2971 White Cane Safety Day 2785, 2994 Wildlife Refuge Week 2775 Wildlife Week 2896 Women’s Equality Day 2969 Women’s History Month 2863 World AIDS Day 2823 World Trade Week 2908 Wright Brothers Day 2840 Sudan, immigrant and nonimmigrant entry, suspension 2822 Accelerated schedule of duty elimination, implementation 2966 Agricultural products 2833 Broom imports 2826 Cotton, modifications 2798 Generalized System of Preferences, amendments 2786, 2844, 2888, 2911 Pharmaceuticals and chemical intermediates, implementation 2871 Romania, most-favored-nation treatment, extension 2812 World Trade Organization Ministerial Declaration on Trade in Information Technology Products and the Agreement on Distilled Spirits 2926 West Bank, Gaza Strip, and industrial zones, duty-free treatment 2815 Electric and magnetic fields research and public information dissemination program, extension 237 California, land conveyance 1166 Colorado, land exchange 1460 Department of the Interior and Related Agencies Appropriations Act, 1998 1543 Eagles Nest Wilderness, CO, expansion 1462 Hood Bay Land Exchange Act of 1997 1269 Michigan, revisionary interest, release 1268 National Geologic Mapping Reauthorization Act of 1997 1107 New Mexico, land conveyance 2523 Ohio, land conveyance 2268 Oregon, land conveyance 1116 Oroville-Tonasket Claim Settlement and Conveyance Act 16 Raggeds Wilderness, CO, boundary adjustment and land conveyance 1463 Warner Canyon Ski Hill Land Exchange 1167 White River National Forest, CO, boundary adjustment 1465 Library of Congress, national audiovisual conservation center, property acquisition 2667 Assassination Records Review Board, extension 240 See Immigration Special immigrant worker program, extension 1175 Balanced Budget Act of 1997 251 Central Intelligence Agency Retirement and Disability System, appropriations authorization 2248 District of Columbia Retirement Protection Act of 1997 715 Federal Employees’ Retirement System Open Enrollment Act of 1997 1318 Investment managers, registration 1457 Savings Are Vital to Everyone’s Retirement Act of 1997 2139 Taxpayer Relief Act of 1997 788B12 David B. Champagne Post Office Building, designation 1455 Alabama-Coosa-Tallapoosa River Basin Compact 2233 Apalachicola-Chattahoochee-Flint River Basin Compact 2219 See Copyrights District of Columbia Bond Financing Improvements Act of 1997 768 Advisers supervision, effective date, extension 15 Managers, employee benefits, registration 1457 New Mexico Statehood Enabling Act Amendments of 1997 1113 Taxpayer Relief Act of 1997 788 See Business and Industry See Postal Service See Intergovernmental Relations Stewart, Clarence P. 2522 See Education See Drugs and Drug Abuse Assisted Suicide Funding Restriction Act of 1997 23 Swigert, Jack 2707 Airport and Airway Trust Fund Tax Reinstatement Act of 1997 4 Balanced Budget Act of 1997 251 Taxpayer Browsing Protection Act 1104 Taxpayer Relief Act of 1997 788 Lawsuits against terrorist states, jurisdiction 22 Museum and Library Services Technical and Conforming Amendments of 1997 2548 Omnibus Consolidated Appropriations Act, 1997 3 Tejeda, Frank, III 191 Tejeda, Marissa 191 Tejeda, Sonya 191 See Communications See Communications Chickasaw Trail Economic Development Compact 2669 Lawsuits against terrorist states, technical correction 22 Frank M. Tejeda Post Office Building, designation 10 Thomas, Charles L. 1759 See Claims See Commerce and Trade Foreign accidents 2681 Pilot employment records 2650 Airport and Airway Trust Fund Tax Reinstatement Act of 1997 4 Metropolitan Washington Airport 2204 Amtrak Reform and Accountability Act of 1997 2570 Aviation Insurance Reauthorization Act of 1997 2640 Department of Transportation and Related Agencies Appropriations Act, 1998 1425 Metropolitan Area Transit Regulation Compact 2686 Surface Transportation Extension Act of 1997 2552 United States Code, codification 2204 International Dolphin Conservation Program Act 1122 United States Trade Representative, appointment waiver 11 See Education University of Alaska Fairbanks 1572 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1998 2094 Benefit decision, revision 2271 National System, interment or memorialization prohibition 2381 State-owned, grant conditions 2382 Veterans’ Cemetery Act of 1997 2202 Department of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998 1344 Leslie Townes Hope, honorary veteran status 1452, 1920 Philippine Army, Scouts, and Guerilla Veterans of World War II Naturalization Act of 1997 2459 State-owned veterans cemeteries, grant conditions 2382 Veterans’ Benefits Act of 1997 2277 Veterans’ Compensation Rate Amendments of 1997 2155 Veterans Reconciliation Act of 1997 663 See Law Enforcement and Crime Vincent, Jean-Marie 2520 Library of Congress, national audiovisual conservation center, property acquisition 2667B13 Martin V.B. Bostetter, Jr. United States Courthouse, designation 2532 Metropolitan Area Transit Regulation Compact 2686 Charitable Donation Antitrust Immunity Act of 1997 241 Volunteer Protection Act of 1997 218 Oroville-Tonasket Claim Settlement and Conveyance Act 16 Energy and Water Development Appropriations Act, 1998 1320 Panama Canal Commission Authorization Act for Fiscal Year 1998 2062 Panama Canal Transition Facilitation Act of 1997 2062 Trinity Lake, CA, designation 1141 Balanced Budget Act of 1997 251 See National Wildlife Refuge System Office of Women’s Business Ownership, establishment 46 Woodriffe, Edwin R. 1172 Grand Teton National Park study, grazing use and open space 1537 See Children, Youth, and Families